Placentia council adopts FY 2025-26 budget, directs 90-day plan to close remaining shortfall

The Placentia City Council voted 5'0to'00 on June 3 to approve the city's fiscal year 2025-26 operating budget and capital improvement program, adopting staff's recommendations while directing the city administrator to return in 90 days with options to close the remaining general-fund gap.

City Administrator Jennifer Lattman told the council the budget process began in February after staff "identified a deficit of several million dollars" and that the city had to respond to rising fixed costs such as CalPERS liabilities, pension-bond debt service and higher insurance and contract costs. She said the all-funds expense plan is about $92.7 million against roughly $89.7 million in revenues and that the general fund is projected at approximately $53.5 million in revenue.

The administration proposed several measures to reduce costs and shore up…