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La Verne reviews FY 2026–27 draft budget, staff outline cuts and reserve use to close $233,680 gap
Summary
City staff told the council the draft FY 2026–27 general fund budget shows a $233,680 shortfall. Finance said reforecasting, one-time uses of OPEB funds and targeted reductions narrowed an earlier $4 million gap; council asked staff to return June 1 with specific cuts before a June 15 vote.
Christie Lopez, the city's finance director, told the council at a May 18 study session that the proposed FY 2026–27 general fund budget shows $48.8 million in resources against just over $49.0 million in appropriations, leaving a $233,680 deficit.
Lopez said the initial reforecast produced a $4 million gap that fell as staff identified additional revenues and savings: a forecast update that added roughly $1.3 million in other taxes, a proposed $700,000 use of OPEB funds and departmental personnel refinements. "We have identified $48,800,000 in resources," Lopez said, and described steps taken to pare overtime, correct staffing counts, and refine permit and ambulance-billing forecasts.
Why it matters: staff warned that Measure LV revenue has flattened and that personnel costs — about 78% of the general fund — continue to drive pressures. The city's 10-year forecast shows Measure LV transfers to the general fund at about $4.8 million and staff said that source appears to be tapped out for future growth, increasing the urgency to find ongoing savings or new revenues.
Council direction and potential cuts: Lopez presented a menu of potential reductions that would close the gap, ranging from modest operational savings to the more painful elimination of seasonal community events. "If the direction is to bring us to zero, I will bring something back on June 1 with those items," the city manager said, promising fully itemized options by the next meeting and a final budget vote on June 15. Staff said it has already identified about $105,000 of cuts it is comfortable implementing without severe service impacts.
Public comment and next steps: speakers from the public pressed for transparency and suggested salary caps and an audit of high-value property tax recipients; staff encouraged residents to submit questions via an lvbudget@laverneca.gov mailbox. The council did not vote on the budget at the study session but approved multiple related actions that fund departmental operations and capital programs; staff will return with a detailed list of proposed cuts and the council's final choices on June 15.
Provenance: Staff presentation and discussion appear in the budget study session (SEG 014–SEG 272; SEG 2199–SEG 2378).
