La Verne city leaders are in the thick of budget season with a smaller-than-expected deficit, but closing the remaining gap could still affect community events, printed materials and staff training.

The City’s draft FY 2026-27 budget currently shows about a $233,600 shortfall after staff revised revenue and spending projections during a recent budget study session. That deficit number originally came back at more than $4 million.

City Finance Director Christy Lopez said the draft budget includes about $48.8 million in resources and slightly more than $49 million in appropriations. She explained the projected deficit initially appeared significantly larger (more than $4 million) until staff identified a missing revenue item and made additional refinements, including a technical refinement to ‘Other Taxes’ revenue projections worth about $1.3 million.

Even with those adjustments, city staff outlined several possible reductions to help close the remaining gap, including:

• Shifting Veterans Hall cleaning responsibilities to staff/users
• Eliminating seasonal community events (such as concerts and movies in the park, senior programming, and special events like the Eggcellent Adventure)
• Further reducing printing/mailing of the city recreation guide
• Reducing staff training

Council members asked staff to return with a detailed, line-item breakdown of potential reductions and to release the information early so residents have time to review and comment before final decisions are made.

Staff said the updated list will return June 1. Final budget adoption is expected June 15.

Lopez and City Manager Ken Domer also warned that revenue from Measure LV—the voter-approved local sales tax measure—is projected to be fully absorbed by baseline personnel costs beginning in FY 2026-27.

Staff said rising personnel, pension and operational costs continue to put pressure on the general fund despite recent spending reductions. According to the presentation, personnel costs and benefits now make up about 72% of the general fund and are projected to increase by roughly $1.8 million compared with the prior fiscal year.

Public Works has added two supervisory positions, but overall, Public Works staffing decreased from 47 to 45 authorized positions. The City also added an information systems technician position while eliminating one part-time clerical position. The police department added one additional officer.

Operational costs account for the remaining 28%, though staff cautioned that continued reductions could affect the City’s ability to maintain services and operations.

According to the May 18 presentation, Tier 1 personnel costs are expected to exceed annual Measure LV revenues, meaning the City may need to begin using reserves sooner than originally anticipated.

Several departments also highlighted cost-cutting measures already underway.

Parks and Recreation officials said the community center will close to the public on Fridays while continuing to allow rentals. Staff also said meeting video costs are being shifted to PEG funds and that the City is building more in-house IT capacity to reduce outside contracting expenses.

Public Works officials reported more than $540,000 in operating reductions as part of a departmental reorganization.

Several residents called for additional transparency and raised concerns about long-term spending trends as budget discussions continue. Public speakers questioned whether spending growth has outpaced inflation and raised concerns about a $25,362 “committed exceptional performance” line item while service reductions are under consideration.

Others called for additional transparency and salary caps as budget discussions continue.

City staff are expected to return June 1 with a detailed, line-item list of proposed reductions and additional budget information for public review. The final budget adoption is scheduled for June 15.