San Fernando proposes conservative FY 2025–26 budget; council questions OPEB and homelessness outreach funding

City staff presented a conservative recommended budget for fiscal year 2025–26 that holds revenue expectations steady, prioritizes one-time enhancements or those offset by other revenue, and proposes modest program changes while flagging potential reductions to some services after grant funds expire.

Director of Administrative Services Erica Melton told the council the FY25–26 proposed budget “prioritiz[es] financial stability during economic uncertainty,” and that staff had minimized new ongoing commitments where possible. The proposed general-fund revenue total was presented at about $28.8 million with $28.6 million in budgeted expenditures; the city manager’s recommended enhancements totaled roughly $266,670 and the presentation showed an estimated general-fund surplus of about $149,340 available for council direction.

Melton and City Manager Nick Kimball outlined several cross-cutting priorities that informed the budget: public-safety patrol effectiveness; citywide recruitment and retention; park and right-of-way beautification; homelessness services; and continued investment in technology and essential service…