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La Verne reviews third‑quarter budget, flags $300,000 personnel pressure and FY26–27 deficit options
Summary
Finance staff told council the general fund is trending about $300,000 over budget for FY25–26 mainly from personnel and leave payouts. Council asked staff to return June 15 with balanced FY26–27 options with and without reserves and to explore sponsorships, modest program changes and efficiencies.
The La Verne City Council received a third‑quarter budget update on June 1 that flagged personnel costs and retirement/leave payouts as the main drivers of a roughly $300,000 projected year‑end overrun in the general fund.
Lede: Finance Director Christy Lopez said current estimates show operational and personnel expenditures trending above revenues by about $300,000 for FY2025–26, with approximately $42,000 of the overage tied to accrued‑leave payouts arising from retirements and separations.
Nut graf: The city is weighing targeted reductions and revenue options to close a draft $233,628 deficit for FY2026–27. Staff suggested several measures — eliminating or delaying part‑time positions, increasing event participation fees or sponsorships, reducing Veterans Hall cleaning cycles, and reorganizing preschool locations — and emphasized preserving reserve levels while keeping essential services.
What council asked for: Members stressed protecting a healthy reserve (about 30% target mentioned), prioritized maintaining public safety and core services, and requested a budget that shows outcomes with and without using reserves. Staff committed to return June 15 with a balanced budget scenario and a final fourth‑quarter update after year end.
Community context: Council and public speakers urged creative sponsorship bundling, modest event adjustments rather than wholesale cuts, and clearer rental/maintenance agreements for facilities like Veterans Hall to recover costs.
Next steps: Staff will bring back refined options and recommended appropriations for grant‑funded items; the city will continue outreach on sponsorship opportunities and return with final figures following the close of the fiscal year.
