Council approves FY 2026–27 baseline with cuts to discretionary building and temporary salary lines

The Rolling Hills City Council accepted the proposed FY 2026–27 baseline budget May 28 with targeted reductions intended to avoid automatic baseline growth in future years. Robert Samario, the staff presenter, told the council that updated revenue projections through March 31 raised expected receipts by roughly $1.92 million but that the city’s year‑end building‑permit receipts have tapered, reducing some near‑term upside.

Samario said staff’s recommended adjustments — including salary and benefit increases tied to the MOU and an LA County Sheriff contract increase — leave the recommended budget about $80,000 above the baseline and produce a projected surplus of roughly $33,334 after council changes. “We looked at revenues through December 31 and tried to make an estimate of how we think we're going to end the year,” Samario said in the presentation.

Council debate centered on two small but symbolic lines: a $7,000 temporary‑salaries allocation and a $55,000 buildings and improvements pot. Several council members argued that adding small recurring lines creates baseline expectations for future budgets. One council member said the $7,000 “could be spent on a temporary person until such a time that we find a new person” but cautioned that making it baseline would raise future budgets. Another council member urged that amounts strictly required by SB 707 for remote access and ADA compliance be preserved while discretionary items be removed.

After discussion, the council voted to approve the budget as presented with the motion to eliminate the $7,000 temporary‑salaries line and to exclude the discretionary portion of the $55,000 buildings and improvements allocation while keeping whatever sum is demonstrated to be required for SB 707 compliance. Staff said it will return with quantified cost estimates for the SB 707‑related equipment and changes before July 1.

The council also directed staff to report back with more detailed cost breakdowns at the June budget meeting. The approved baseline retains planned increases for contracted services such as Willdan (planning) and an increased sheriff contract tied to CPI adjustments. Samario said staff’s next step is to refine line‑item expenditures and return with more granular figures.

Next steps: staff will provide the quantification of SB 707‑related costs at the June meeting and bring any required supplemental budget requests back to council for approval.