Agoura Hills council adopts midyear budget amendment amid small surplus and revenue adjustments

Agoura Hills — The City Council on Feb. 25 adopted Resolution 26-2126, a midyear amendment to the fiscal year 2025‑26 budget, after hearing a staff presentation that recalibrated revenue forecasts and confirmed expenditures remain within appropriations.

A staff member presenting the midyear update told the council that the city’s revenue consultant advised reducing the sales‑and‑use tax forecast by about $273,000. That shortfall, the presenter said, was largely offset by stronger building‑permit receipts and recognition of deferred revenues — an increase staff quantified at about $283,000 — leaving the city with a modestly larger projected surplus compared with earlier estimates.

“The city did feel an impact on the overall macro economy,” the staff member said, summarizing forecasting assumptions tied to consumer behavior, tariff rulings and local sales‑tax changes. The presenter also said expenditures across departments remain within the budgeted appropriations and that staff was not recommending further revenue adjustments at this time.

The council’s finance subcommittee members praised staff for a clear presentation and for departmental coordination that allowed internal transfers to cover shortfalls without cutting programs. “I’d just like to thank Diego and all your staff for doing such an excellent presentation,” Council member Sylvester said during deliberations.

Council members asked for clarifications about the source of higher permit revenue. Council member Anstead confirmed the change was not a new tax but a higher realized permit intake and noted the council had approved a fee schedule update last year that increased some permit fees. The staff presenter agreed, saying the fee schedule changes and timing of permit applications were both factors.

After deliberations, Council member Sylvester moved to adopt the staff recommendation to approve Resolution 26‑2126; City Councilman Christensen seconded. A roll call vote recorded Council members Anderson, Anstead, Sylvester, Mayor Pro Tim Klein Lopez and Mayor Wolf voting yes; the motion passed 5‑0.

The staff presentation also included personnel updates: the finance department is now fully staffed, with a new finance manager, EU Lee, and an accounting specialist, Alejandra Conchole, on board, the presenter said.

The council flagged a procedural change under consideration: moving regular budget review meetings from semiannual to quarterly to better monitor performance in uncertain economic times. No additional expenditure increases were approved in the amendment; the resolution authorizes the transfers and revenue adjustments described in the staff report.

Resolution 26‑2126 is effective immediately as adopted; staff will begin the midcycle process for the FY 2026‑27 budget in March and continue to monitor grants and capital projects for timing and funding impacts.