Board debates FY25–26 adjustment, 50/50 JPA accounting and wind-down costs; removes fire inspector, directs finance coordination

A lengthy debate over budget presentation, liabilities and winding down the Big Bear Fire Authority dominated the June 9 meeting. The board considered an amended FY25–26 budget staff said would invoice both parties for 50% of authority expenses and show a shortfall where the City Service District (CSD) can contribute only what it receives.

Finance officer Kristen presented options to either show both parties at the 50/50 line and list the CSD shortfall as a parenthetical deficit, or to show net receipts and annotate the difference as a footnote. Several directors argued that the budget should accurately reflect the JPA’s 50/50 obligation (7.1M each in the documents presented) with the shortfall shown as a liability so future recoveries and the dissolution accounting are clear. Others cautioned that showing a debit could create operational or legal expectations and urged working with auditors and counsel.

Directors raised specific liabilities the budget does not treat as operating expenses: accumulated paid time off (PTO) of roughly $1.6 million projected to be due in mid-2027, several equipment loans and two Bank of America loans (amounts discussed in the meeting), and other long-term obligations. The city finance director, Dina Heald, asked finance staff from the authority, the fire protection district and the city to sit down with auditors and reconcile the numbers before final adoption.

On personnel and governance actions, the board voted to remove the fire inspector position from the FY26–27 budget effective July 1, 2026, a change staff said could save about $163,000. The motion passed by roll call. The board also voted to direct staff to prepare an ordinance amendment to eliminate board stipends and meeting refreshments (refreshments to stop immediately; stipends require a formal code change before they are eliminated). Finally, the board directed Kristen to work with finance counterparts at FPD and CSD to produce a reconciled statement of assets, liabilities and anticipated wind-down costs and to return with a clear set of recommended budget adjustments.

Several residents urged the board to be cautious about canceling services or cutting off-mountain transports; one public commenter said shutting transports would be life‑threatening in some conditions. Board members said they will consider operational impacts as they finalize cuts and will use the finance coordination work to determine service-level implications.