Simi Valley council approves FY 2025–26 budget, five‑year CIP and transit program
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Summary
The council approved the city’s fiscal year 2025–26 operating budget, a five‑year capital improvement program and related transit grant applications and projects, directing one‑time surplus funds toward vehicle replacement, building maintenance and street repairs.
The Simi Valley City Council approved the city’s fiscal year 2025–26 operating budget, a five‑year capital improvement program (CIP) and related transit program of projects, adopting the resolutions needed to file federal transit grant applications and amend the CIP.
City staff told the council the proposed budget projects roughly $97 million in general fund revenues for 2025–26 and $96.7 million in expenditures, and emphasizes reinvesting one‑time funds into capital and one‑time needs rather than ongoing programs. Staff highlighted $3.5 million budgeted for replacement and expansion of critical vehicles for the police and public works departments, about $1.6 million for deferred building and grounds maintenance, and $9.9 million for street and road projects in 2025–26. The proposed CIP described 173 projects over five years, with 53 requesting funding in 2025–26 and roughly $36 million requested for that year.
Administrative Services Director Carolyn Johnson, Deputy Administrative Director Johanna Medrano and Management Analyst Cynthia Orozco presented the financial overview and said the city ended FY 2023–24 with a $7.1 million operating surplus and projects a roughly $2.7 million surplus for the current fiscal year. Staff recommended continuing the council’s policy of using one‑time surplus dollars for one‑time commitments, with a 40/40/20 split (retirement obligations/infrastructure/contingency) used previously as guidance.
On the capital side, staff identified street and road projects including Arroyo Simi Greenway Phase 5, the Highway Safety Improvement Program (HSIP) cycle 12 projects, replacement of traffic‑signal backup power and major and minor pavement programs. Transit projects in the adopted program include electric vehicle and infrastructure purchases, CNG fueling upgrades, six electric fixed‑route buses and bus technology equipment; staff noted grant funds will cover many microtransit pilot project costs and initial three years of operations.
Council members asked detailed questions about carryovers, fund balances (particularly the streets and roads fund), where one‑time revenues are coming from, interest earned on invested funds, and whether items labeled “one‑time” might create ongoing obligations. Staff said year‑end carryovers and committed project funds produce differences between adopted budgets and estimated actuals and agreed to follow up with line‑item details requested by council members.
Votes at a glance: the council approved the transit program of projects and authorized filing of federal transit grant applications (49 U.S.C. §5307, CMAQ, JARC) and amended the CIP; the council also adopted joint resolution 2025‑17 (approving the FY 2025–26 annual budget and five‑year CIP) and resolution 2025‑16 (authorizing filing of federal transit applications). All motions recorded in the transcript passed unanimously.
The budget presentation closed with staff noting the city remains in a strong position but should plan conservatively given flat sales tax projections and uncertain economic conditions.
