San Dimas adopts FY 2025–26 budget with nearly $1M projected deficit

The San Dimas City Council on June 24 adopted the FY 2025–26 operating and capital improvement budget after a staff presentation and council discussion.

Administrative Services Director Michael O’Brien presented the plan and said the general‑fund revenue forecast totaled just over $32 million while proposed expenditures were just under $31.7 million and that the plan would use reserves to cover capital projects and an anticipated deficit. He summarized: "we would be looking at a projected budget deficit of $981,944." O’Brien said staff’s goal was to maintain service levels and avoid cuts while monitoring midyear results.

Councilmembers asked about recent sales‑tax receipts, transient occupancy tax audit recoveries and communications‑system upgrades. O’Brien said recent remittances were slightly lower than projections but that an audit of TOT (hotel tax) yielded about $100,000 in corrected remittances. He also outlined several capital investments in the CIP, including street rehabilitation (notably Arrow Highway), fleet modernization ($1.55 million), storm‑drain work and a planned Monte Vista Avenue rehabilitation project.

Several councilmembers acknowledged the budget’s approach but raised concerns about an ongoing structural deficit. One councilmember urged more aggressive cost review, calling for prioritization and program scrutiny ahead of future years.

After discussion the council voted 5–0 to adopt Resolution 2025‑38 approving the FY 2025–26 operating and capital improvement program.