Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Local Budget topic
No spam. Unsubscribe anytime.
La Verne adopts midyear budget adjustments after finance warns of $2 million general‑fund shortfall
Summary
Finance Director Christy Lopez told council that a projected $2 million general‑fund deficit—largely driven by $1.88M in public‑safety overtime tied to injury‑on‑duty and FMLA costs—was reduced through $800K of departmental cuts; council approved using reserves and postponing the general capital contribution to close the remaining gap.
La Verne’s city council on April 7 adopted midyear budget adjustments after Finance Director Christy Lopez reported a projected general‑fund shortfall driven primarily by increased public‑safety overtime and weaker-than-budgeted revenues.
Lopez told the council that the city’s midyear analysis, using actuals from the first six months and updated assumptions for the remainder of the fiscal year, identified a roughly $2 million projected deficit. She attributed most of the variance to $1.88 million in additional overtime for public‑safety functions (largely injury‑on‑duty cases, FMLA and backfill), plus revenue shortfalls in sales tax and building permits. Departments identified approximately $800,000 in operating reductions, leaving an estimated remaining shortfall of about $600,000 after those cuts.
"The city's general fund is projected to end the year with a $2 million deficit," Lopez said, describing outreach to departments to reduce nonessential spending and a hiring/travel freeze on non‑operational overnight travel. Staff recommended suspending the annual contribution to the general capital improvement fund (to be reconsidered later), withdrawing $323,000 from an assigned fund balance for future benefit obligations to cover vacation payouts, and using smaller amounts from legal reserves and future operations to close the remainder.
Council commentary: Council members expressed concern about sustainability and emphasized that dipping into reserves is not a long‑term solution. Council Member Laauo and Mayor Pro Tem Johnson urged improved forecasting for overtime and stressed capturing reimbursement revenue for emergency assignments to minimize net overtime costs. City leaders noted steps to track and better budget for injury‑on‑duty claims and to pursue grant and reimbursement opportunities where eligible.
Adoption and next steps: After discussion the council adopted the recommended midyear adjustments and directed staff to continue pursuit of reimbursements for assignments, refine overtime forecasting, and bring recommended long‑range budget priorities to a strategic planning session.
The adopted resolution and adjustments will be incorporated into the FY24–25 budget and staff said they will report back on the effects of the measures and on any further needed adjustments.
