Finance committee weighs FY 2026–27 budget, directs cuts to discretionary chambers upgrades

The Rolling Hills Estates Finance, Budget & Audit Committee reviewed the recommended fiscal year 2026–27 budget and asked staff to reduce discretionary council‑chambers improvements while keeping state‑mandated accessibility and cybersecurity upgrades.

Robert, the city’s finance lead, told the committee he updated revenue projections through March 31 and adjusted proposed expenditures. He said building‑permit revenues have softened — "I lowered my projection to 496" from roughly $600,000 — and that overall next‑year revenue projections rose slightly from 2,779 to 2,798 in the packet. On the expenditure side, he said staff balanced a status‑quo budget with a few targeted changes and now expects a small surplus of about $33,000, down from an earlier estimate near $95,000.

The debate centered on three departmental changes staff flagged: Planning & Development (an increase of about $28,600), a modest reduction in non‑E/P departmental spending, and City Properties (an increase of about $79,413). In Planning, Robert recommended adding $20,000 for an expected increase in work with consultant Wildan and $5,000 for planning‑related legal services. He also said the city bumped PARS (the Section 115 OPEB trust) contributions by about $20,000.

Committee members pressed staff on personnel and line items. After staff reported that a planning assistant will leave Monday, a committee member noted temporary‑salary budget lines and asked whether the city would still need temporary pay if positions remained vacant; staff replied the vacancy could require temporary or contract support "to help us out" so services continue.

Committee members also scrutinized city‑properties and repairs budgets. Robert said staff added roughly $65,000 for deferred repairs and building‑equipment needs, including an estimated $40,000 for audiovisual and accessibility upgrades to council chambers tied to SB77 requirements. He said IT services increased about $12,000 and that a three‑year firewall license renewal added roughly $4,400 to the estimate. Christian, a staff member working on IT and facilities, told the committee the California Joint Powers Insurance Authority (CJPIA) is imposing cybersecurity expectations and staff is exploring migrating hosting from Amazon Web Services to Microsoft to lower long‑term costs.

A committee member questioned the size of the chambers upgrade and urged a narrower approach. "We should only include state‑mandated improvements to this facility like particularly council chambers," the member said, asking staff to separate mandatory items from discretionary upgrades and to present a line‑by‑line breakdown to the full council. Staff agreed to provide a revised, itemized recommendation showing non‑discretionary versus discretionary costs and to highlight any one‑time versus ongoing items before the council votes on adoption.

Other specific adjustments discussed included lowering the emergency‑preparedness contingency from about $69,000 to roughly $32,500 based on prior unspent balances, aligning county inspection payments with revised building‑permit revenue expectations, and adding a web‑accessibility subscription to meet new federal and state ADA requirements (a roughly $3,350 increase in web hosting/compliance costs).

The committee gave staff direction to refine estimates, identify cost savings, and return to the full council with a recommended budget and detailed justification. No new formal policy was adopted at the meeting; the committee will forward its recommendations for council consideration at the upcoming city council meeting. The committee adjourned after giving staff those instructions.