Placentia council adopts balanced FY 2026–27 budget, acknowledges infrastructure gaps

The Placentia City Council on June 30 adopted its FY 2026–27 operating budget, position allocation plan, GANN appropriations limit and the Placentia Public Financing Authority budget in a 5–0 vote.

Acting Director of Finance Gavin told the council the budget is “balanced” without drawing on prior one‑time revenues, and reported the city’s fund balance is projected to rise from about $9.2 million to roughly $11.8 million after adding $2.6 million in Measure U and a one‑time county annexation transfer. Gavin said all‑funds revenue is roughly $97 million against $96 million in expenditures.

Council members pressed staff on what the budget does not include. Mayor Pro Tem Yamaguchi said the plan omits at least $3 million per year for road maintenance and flagged a facilities condition index that two years earlier estimated $10–15 million in deferred maintenance, a figure she warned is increasing. “As facilities continue to deteriorate, that price is gonna go up,” Yamaguchi said.

Gavin outlined staffing changes that helped close the gap: the budget includes the layoff of two filled positions (communications and marketing manager, deputy director of administrative services), does not fill two vacant positions (dispatch supervisor and planning technician), proposes a reclassification to create a crew lead in facilities maintenance and converts a contracted IT specialist to a full‑time employee. He also said insurance costs came in $235,000 lower than projected, helping the bottom line.

Mayor Ivanka and other council members said maintaining a prudent reserve was a priority after recent emergency spending needs. The council approved the budget and related motions on a single roll call with all five members voting yes. The motion passed 5–0.