Sierra Madre council adopts FY 2026–27 budget, tables fee schedule changes to July 14

The Sierra Madre City Council adopted the FY 2026–27 operating and capital budget on June 23 after receiving a detailed presentation from Finance Director Harry Wong and an extended council Q&A. The budget reflects departmental reorganization, internal-service-fund (ISF) allocation changes, several approved enhancements, and a $1.1 million carryover tied to YMCA elevator/pool capital work.

Finance Director Harry Wong summarized key points: restructured department organization (a standalone Finance Department and a new City Manager office that consolidates administrative divisions), ISF refinements to allocate indirect costs to operating departments, and $1.5 million of approved enhancement requests (about $427,000 ongoing to the general fund and $1.1 million one-time requests). "Total FY 26–27 budgeted revenue is $19.7 million and expenditures are $20.8 million," Wong said, explaining the projected $1.1 million general-fund gap largely reflects one-time capital carryover for the YMCA project.

Council raised questions about pension prefunding and the presentation of carryover capital projects (staff explained many capital items were budgeted in the prior fiscal year and reappropriated in FY27). Leaders asked for clearer reserve accounting; staff reported the city’s practice was to aim for an informal 25% general-fund reserve and committed to preparing a formal reserve policy and clearer presentation in future budget documents.

The budget discussion also covered a proposed fleet-replacement program (leasing vs. purchase), where council asked staff to return with line-by-line justification before spending the proposed FY27 pilot amounts. On EV charging, staff clarified a $55,000 clean-air-fund item would purchase fleet chargers at city facilities rather than public chargers in parks.

Council adopted the budget resolutions approving the operating and CIP budgets and associated salary matrices. The council deferred adoption of the revised fee schedule and continued related fee-resolution items to July 14 so staff could add percentage-change columns, correct typographical inconsistencies, and provide justification for several unusually large or adjusted line items (for example, some permit valuation brackets and film/off-duty staffing rates). The council asked staff to also propose a user-fee policy that clarifies cost-recovery goals and exceptions.