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Los Altos commission reviews proposed FY27 budget, staff flags solid-waste shortfall
Summary
At a Los Altos Financial Commission meeting, staff outlined a proposed FY27 operating budget projecting $71 million in revenue, a $9.3 million pre-transfer surplus, and noted major increases in public works and parks; solid-waste deficits prompted short-term transfers and a long-term recovery plan.
At a meeting of the Los Altos Financial Commission, staff presented the city's proposed FY27 operating budget and described revenue gains and programmatic spending increases that together produce a projected $9.3 million surplus before transfers.
The presenter told commissioners that the city expects about $71,000,000 in general fund revenue for FY27, roughly 8.4% above the prior budget, and estimated expenditures of about $61,700,000. Staff said revenue growth is coming from stronger engineering and plan-check fees, higher recreation fees, and steady property tax growth; property taxes were projected to rise about 6.6% for FY27.
The presenter attributed much of the spending increase to reallocated work and added positions in public works, noting public works spending would rise roughly 39% because several divisions and three new positions (including engineering managers) moved to that department. Parks and recreation were shown increasing by about 15% to reflect higher program activity and higher utility costs, and the city manager's office budget was shown rising by roughly 14% to fund added staff and outreach.
Commissioners probed the proposed transfers and fund uses. The presenter said about $11,000,000 of projected transfers would go to the capital improvement plan (CIP) fund and that roughly $1,000,000 was tentatively directed to a technology fund to cover periodic software and hardware purchases (for example, replacing financial-system licenses and buying servers). The presenter said staff will provide a finalized fund-balance schedule showing the transfers once they are confirmed.
The presentation also reviewed the city's enterprise funds. The presenter said the sewer fund's budget aligns with recent trends, but the solid-waste fund has run deficits for several years and shows a sharply reduced ending net position. "In the short term, we are planning temporary support while developing a longer term plan for financial stability," the presenter said, describing short-term transfers from the general fund while staff work on a long-term strategy.
A commissioner asked about a large increase in the street-maintenance line (from roughly $743,000 to about $1,550,000, a near 109% increase). The presenter did not provide a line-item explanation during the meeting and said staff would follow up with the requested detail.
The chair and staff agreed that the commission would continue budget review work next month with a deeper look at capital spending and final transfer amounts. No formal vote or action on the budget occurred at the meeting.
Next procedural steps: staff will return with a finalized fund-balance presentation and CIP transfer details before the commission advances recommendations to the City Council.
