Finance Director (presenter) Ms. Peterson presented the city’s FY 2025–26 budget and five-year capital improvement program and said the net change since the May budget workshop was minor. The most up-to-date numbers presented to council showed projected General Fund revenues of $24,766,500 and expenditures of $25,585,100, leaving a projected deficit of $1,818,600; Peterson explained the deficit includes capital projects funded from reserves.

The five-year CIP was unchanged in substance from the workshop; key projects discussed included Huntington Drive engineering and street rehabilitation (planned across fiscal years), a $1.6 million federal appropriation for the Watson Recreation Trail, a $1.3 million Measure M Highland Promenade allocation, the teen center outdoor boxing renovation (Measure A) and a $1.25 million allotment for Huntington Drive underground utilities (Rule 20A). Peterson said the city’s unassigned general fund balance would still cover roughly 100% of one year of expenditures under the projection.

Council discussed two potential additions Peterson had obtained updated estimates for: holiday decorations on Duarte Road (estimated $18,000 to purchase decorations and $10,000 for installation/removal/storage) and replacement/installation of engineered banner poles on Buena Vista (estimated $90,000 for purchase and installation). Council moved to add both items to the budget; Peterson said the additions would increase expenses by about $118,000 and would reduce the projected coverage to about 99% of one-year expenditures but remain within prudent reserve levels.

Councilmembers also discussed possible future items including beautification of the pedestrian bridge over the freeway and the Rule 20A undergrounding project locations; staff said the undergrounding estimates will return for council consideration once final costs are available. The council adopted the FY 2025–26 budget and the five-year CIP and approved staff recommendations including the two additional items discussed.