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Calimesa council adopts balanced FY 2025–26 budget, successor agency plan
Summary
The City Council of the City of Calimesa approved a structurally balanced operating and capital budget for fiscal year 2025–26 and the successor agency budget, after staff presentations and discussion of projected costs for police, fire and insurance.
The City Council of the City of Calimesa on Tuesday adopted the city’s fiscal year 2025–26 operating and capital budget and the Calimesa Successor Agency budget after a public hearing and staff presentations.
Finance Director Celeste Reed and City Manager Will Cobo summarized the proposed budget, saying ongoing revenues exceed ongoing expenditures by about $128,000 before small allocations; after set-asides the structural surplus was estimated at roughly $83,000. Reed said the city projects roughly $6.4 million in reserve funds as of June 30, 2026, and a total of about $7.4 million available across general, capital and vehicle-replacement funds.
The presentation said property tax and sales tax growth that fueled revenue gains earlier in the decade is leveling off. Reed and Cobo told the council that about 90% of the city’s revenue increases since fiscal 2021 have gone toward public safety and insurance: increases of roughly $975,000 for police and about $1.3 million for fire, plus substantial insurance cost increases. Reed noted the city added services during the period, including a “POP” police officer and an advanced life‑support paramedic program for fire, which contributed to the higher costs.
The council discussed anticipated future pressures, including a projected 7% increase in the county sheriff contract for FY 2026–27 and ongoing insurance and personnel costs. Reed said the city has budgeted modest one‑time expenditures totaling about $450,000 for equipment purchases, studies and capital items, and is phasing fee and indirect cost adjustments to move toward full cost recovery.
After public comment and council discussion, the council voted unanimously to adopt the appropriation limit, the city operating budget, and the successor agency budget. The council also approved the budget-related amendments to the prior fiscal year as presented by staff.
Council members and staff emphasized that while the budget is balanced for FY 2025–26, continued restraint and planning will be required to absorb projected future increases in public safety contracts and insurance.
