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Beaumont staff present near-balanced FY2027 budget; council sets May workshop to vet staffing and tax options
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Summary
City staff presented a draft FY2027 budget with $75.38 million in projected general-fund revenue and a nearly balanced spending plan; one-time enhancements of $287,635 were proposed and staff warned long-term shortfalls unless growth or a tax measure materializes.
City staff on Thursday presented the draft fiscal year 2027 city manager's budget, outlining projected general fund revenues of $75,380,000 and proposed expenditures of $75,050,000 before enhancement requests.
"Projected revenues for the fiscal year 2027 budget is $75,380,000," said Lisa Leech, the staff presenter, who walked council through a revenue mix that lists sales tax as the largest source at 39%, other taxes at 18% and property tax at 14%. Leech said building permit revenue is forecast roughly $1,000,000 lower than the FY26 budgeted estimate and cautioned that sales-tax volatility will remain a monitoring priority.
On the expenditure side, Leech said personnel costs account for 56% of the proposed general fund budget and highlighted a pension contribution of $651,208. She told council the draft is ‘‘nearly balanced’’ prior to one-time enhancement requests totaling $287,635 and described staff's preference to approve one-time enhancements while deferring ongoing personnel decisions.
Council members pressed staff on timing and the risk of relying on future projects. Leech said staff used a conservative assumption for projected revenue from the Regency project and presented five forecast scenarios: a baseline, the effect of a 3.5% cost-of-living adjustment, the Regency revenue addition, a debt-service scenario tied to a proposed $75 million police station bond, and the effect of a potential 1% sales-tax measure. She noted that if a sales-tax measure were approved by voters, the city would not receive revenue until the 2027–28 fiscal year because of state implementation timing.
Staff also reviewed reserves. Leech said the audited fund balance as of June 30 was $53.6 million and, applying the city's reserve policy (16% working cash flow, a $5 million stabilization reserve and a $1 million emergency reserve), estimated an available balance of about $21 million to $22 million.
Council directed staff to return with follow-up information at a late-May workshop on items including: which enhancement requests are must-haves versus candidates for midyear funding; the timing of the measure-A payback to WRCOG and its impact on future revenues; pension-trust contribution alternatives; and more detail on planning and permit revenue trends.
The council did not take final action on the budget; staff said the packet will return for adoption in June unless council asks for further changes in May.
