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Calabasas council adopts FY2026–27 budget, uses reserves and directs review of community center funding
Summary
The council adopted the FY2026–27 budget on June 24, authorizing use of up to $621,000 in general fund reserves to cover a projected deficit, approved a $125,000 community grant budget line, and asked staff to return with stricter grant vetting and a plan to close the community center shortfall.
The Calabasas City Council on June 24 adopted the fiscal year 2026–27 budget after an extended discussion about the community center subsidy, reserve levels and a new proposed community grants program.
City finance staff told the council that updated revenue projections increased community center receipts by $118,000 and allowed a $100,000 reduction in the transfer from the general fund to the community center. Even so, the adopted budget projects a general fund shortfall of $621,000 for the coming year; staff noted available reserves could cover the deficit and recommended authorizing use of reserves up to that amount.
Council members debated using reserves to cover the shortfall. Council Member David urged caution and asked for more program‑level detail on community center revenues and expenses before transferring the full amount, while other members said the city's reserve position (reported at roughly 63.5% before this action) would remain above the city's 50% policy even after covering the budget gap. "We need to protect those funds for the future of the city," David said; colleagues said spending a portion to avoid service cuts was justifiable.
Council also discussed a new $125,000 community grant program intended to replace prior PFC (public/partner funding) practices. Several council members agreed that long‑standing community events (Something Yellow 5K, Rotary activities and the Calabasas Film Festival) should remain treated as co‑sponsored city events rather than compete for the new grant pool. The council directed staff to return in August or September with application guidelines, vetting procedures, reporting requirements and proposals for who will screen applications (staff versus outside committee).
The council moved and approved the budget resolution with a friendly amendment to defer payment to Contract Cities pending staff inquiry and with a direction that staff take a "hard look" at community center operations to find ways to close the gap. The vote was 5‑0.
What to expect next: Staff will return with grant program guidelines and a midyear budget update (typically in January/February) to report six months of actuals and revisit transfers if necessary.
Authorities and fiscal details: The council adopted Resolution No. 2026‑2027 to adopt the annual budget (resolution number as read at the meeting). The precise accounting details, including program‑by‑program revenue/expense breakdowns requested by council, were not detailed in the public staff presentation and will be supplied by finance on follow up.
