City presents preliminary FY 2026-27 budget and adopts 10-year financial model

City staff presented the preliminary fiscal year 2026-27 citywide budget and an updated 10-year financial model at the June 2 Rancho Palos Verdes council meeting. The council voted to receive and file the year-end estimates, approve preliminary budget figures and accept the updated financial model.

Finance director Vina Ramos and deputy director Robert Moya summarized the numbers: proposed general-fund operating revenues of $42,500,000 and operating expenditures of $37,500,000, with a $9,200,000 proposed transfer to the capital improvement program (CIP). Staff reported a 50% reserve-policy target of about $18,600,000 and an estimated unallocated general-fund balance of roughly $10,200,000. The five-year CIP includes 19 projects totaling about $31,000,000, with the largest portions earmarked for roadway maintenance and landslide response.

Senior analyst James O'Neil reviewed the financial model and stress tests, noting the model shows the city remaining structurally balanced over the 10-year forecast but with revenues and expenditures converging in the early 2030s. Staff ran a sensitivity example of a hypothetical $6 million emergency in 2030 and modeled a 50% reimbursement to show impacts on fund balance.

Council members thanked staff for multiple budget workshops and the modeling work and discussed long-term risks—particularly landslide and storm-drain liabilities—and the need for continued monitoring of assumptions. Councilmember Bradley moved to accept staff recommendations on the preliminary budget; the motion passed unanimously. Council later moved to accept the 10-year financial model, and that motion also passed on a unanimous roll call.

Staff said they will return on June 16 for the formal budget public hearing and anticipated budget adoption, and encouraged residents to complete the city surveys open through June 30 that will inform budget priorities.