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La Verne City Council reviews $1.1 million budget gap, asks for more detail before vote
Summary
City staff presented a $1.1 million general-fund shortfall for FY 2025–26 and outlined one-time funding shifts, department tiered cuts and options to use reserves; council asked for additional briefings before deciding at the June 16 meeting.
La Verne City staff presented a second study-session overview on June 2 of a proposed FY 2025–26 operating budget that currently shows about a $1.1 million general‑fund deficit and asked the council for direction on whether to use reserves, shift one‑time funds or approve department cuts.
Finance Director Christy Lopez told the council staff had identified one‑time sources that reduce the earlier $2.8 million gap, including “we've identified over um a million dollars of interest that we didn't really anticipate” from OPEB and the pension stabilization trust, $75,000 from a restricted fire training account and $71,000 tied to firefighter military leave. Staff also proposed shifting about $600,000 of general‑fund street maintenance to transportation‑restricted funds where eligible to ease general‑fund pressure.
City Manager Mr Domer framed the broader context, saying the city’s biggest structural pressure remains pension obligations and that staff were trying to present options that would leave the budget structurally balanced. “We have to absolutely recognize the cost of providing services,” he said while urging a mix of cuts, fund shifts and possible limited reserve use to reach balance.
Departments walked through tiered savings options: tier 1 items are smaller or one‑time adjustments staff say they can implement with limited service impacts; tier 2 items would reduce or defer services and long‑term investments. Examples included moving audit or administration charges to successor agency funds, reducing professional services, deferring certain capital outlays and modest operational cuts in several departments.
Staff modeled three reserve scenarios showing ending reserves between roughly 25% and 26% depending on which tiers the council directs staff to implement. Finance staff committed to post the preliminary budget and supporting detail ahead of the June 16 meeting and to meet with council members one‑on‑one this week so council can vote on a structurally balanced budget in mid‑June.
Council members and members of the public pressed staff for more detail on overtime and actuarial assumptions, and several asked for more time to review the materials after members said the packet arrived too close to the meeting. Staff agreed to schedule follow‑up briefings this week and to publish the preliminary budget materials so residents and council members have more time to review before action is taken.
