Sierra Madre Development News

City Council Adopts FY 2026-2027 Budget Amidst Fiscal Discussions

The City Council reviewed and adopted the fiscal year 2026-2027 budget, including operating and capital improvement plans, a fee schedule, an appropriation limit, and executive/confidential salary matrices. Key changes included restructuring departments, removing direct water/sewer charges from administrative staff, revamping internal service fund allocations, and approving approximately $1.5 million in budget enhancements. The general fund is projected to have a deficit of $1.1 million due to a capital outlay for the YMCA renovation, but would be balanced without this item. Revenue is projected to increase by $1.4 million while expenditures decrease by $5.8 million due to the completion of the library renovation. Proprietary fund revenues are up $2.7 million, with expenditures increasing by $6.2 million, largely due to higher water costs and internal service fund allocations. Council members raised concerns about the performance penalties for construction and demolition waste disposal, the logic of the penalty percentages, the lack of clarity in some fee structures, and the need for a comprehensive fleet management plan. The fee schedule adoption was continued to a future date for further review and clarification. The budget does not include COLA adjustments, pending union negotiations. A $50,000 allocation for community surveys was included in the budget.