Sierra Madre adopts 2025–26 budget, fee schedule and higher appropriations ceiling
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Summary
City Council approved a $19.8 million general-fund budget for fiscal year 2025–26, adopted a fee schedule and raised the appropriations limit; council and staff warned of rising pension and insurance costs and recommended revenue and efficiency strategies.
The Sierra Madre City Council on June 10 adopted the city's fiscal 2025'26 budget, approved a revised fee schedule and set the Gann appropriations limit for the coming year.
The $19.8 million general-fund spending plan passed by voice vote after a full presentation from Finance Director Rainey. Councilors and city staff highlighted that the budget remains operationally balanced for the coming year but warned that rising CalPERS pension payments, workers'compensation premiums and other nondiscretionary costs will narrow flexibility in the near term.
Rainey told the council that general-fund revenues are projected to rise by about $608,000 (roughly 3.5 percent) compared with 2024'25, while expenditures increase roughly 6.9 percent; he said roughly half of that increase is one'time capital spending and that core operating growth is closer to 2'3 percent. The finance presentation emphasized a multi'year risk from higher CalPERS unfunded accrued liability payments that the city expects to climb substantially over the next several years.
Council members pressed staff for details about contingency planning and long'term options. Assistant City Manager Hernandez and Finance Director Rainey flagged several response strategies: new or enhanced revenue sources, targeted fee recoveries for special events and services, additional operational efficiencies and selective use of reserves for capital needs. Rainey recommended the council consider the general-fund reserve for a one'time capital expenditure (the YMCA pool/elevator project) while preserving reserve policy for emergencies.
The council adopted three resolutions at the meeting: Resolution 25'39 adopting the fiscal year 2025'26 budget, Resolution 25'40 approving the Gann appropriations limit and Resolution 25'41 adopting the 2025'26 fee schedule. All passed on voice approval; the record did not show rollcall tallies for those votes.
Council members and staff also described next steps: a meeting of the ad hoc revenue committee to prioritize sustainable revenue options and work to educate the public about tradeoffs between services and taxes. Staff said that the city will continue to pursue grants and other outside funding, and will pursue internal efficiency and technology investments to reduce recurring costs where possible.
The council'adopted budget takes effect July 1, 2025. Staff will return with regular monitoring reports and any midyear requests for adjustments that arise from emergencies or major reimbursement developments.
