Placentia council adopts FY 2025–26 budget, orders 90‑day plan to close remaining shortfall

The Placentia City Council approved its fiscal year 2025–26 operating and capital budgets on June 3, voting 5–0 to adopt the recommended package while directing staff to return in 90 days with options to close a remaining structural shortfall.

City Administrator Jennifer Lattman presented the budget, saying the citywide expense plan totals about $92.7 million against projected revenues of roughly $89.7 million and that the general fund projects about $53.5 million in revenue. She told the council CalPERS-related pension costs helped drive a recent increase in the city’s unfunded actuarial liability payment from $447,000 to $917,000 and that staff used a mix of one-time revenues and a Section 115 trust to balance most of the gap.

Lattman said staff proposed eliminating four vacant positions and using $1,000,000 from a Section 115 trust and about $500,000 in one-time revenue to help close the gap. She also gave an overview of the capital improvement program, which totals roughly $11.4 million with about $8.4 million prioritized for streets.

Councilmembers pressed for firm commitments to structural savings. Councilmember (name recorded in the minutes as having moved the motion) said the council expected a durable plan and asked staff to return within 90 days with options to achieve up to $1.1 million in ongoing reductions or revenue increases. The council also directed that $880,000 be allocated now for replacement of a fuel tank at the city yard; staff noted removal must happen by Dec. 31 and replacement could be bid as an alternate.

The motion to approve the recommended budget package, to incorporate the reductions approved at the prior special meeting, and to direct the 90‑day follow-up passed 5–0.