Here's the situation: La Verne is heading into the next fiscal year with a structural budget gap of approximately $233,628. That means the City is projected to spend more than it takes in on an ongoing basis—not just a one-time bad year, but a built-in imbalance that requires a deliberate fix.

Staff spent the months leading up to the May 18 Budget Study Session working with every department to find cuts, efficiencies, and revenue adjustments. The gap was significantly reduced before this report—but "significantly reduced" still leaves a structural shortfall, meaning the City spends more than it takes in on an ongoing basis.

So far, staff has identified about $75,000 in proposed cuts—spread thin across departments to avoid any single service area taking a major hit. The biggest individual line items include eliminating $11,000 in contracted cleaning at Veterans Hall, eliminating $4,000 in Carry Concealed Weapon psychological evaluations in the police department, cutting $5,000 each from police legal fees and crime prevention community outreach, and cutting fire training budgets by $2,500-$5,000 across multiple accounts.

"We could make some of these drastic changes, or we can do like we did last year knowing things can change," said City Manager Ken Domer. "With the minimal amount left to cut, we could designate about $150,000 from reserves and monitor revenues and expenses through the year to ensure we remain balanced, as one option."

While tapping reserves could help avoid deeper cuts in the short term, some officials view it as a temporary solution rather than a long-term fix. Reserves are typically intended for emergencies and one-time expenses, and relying on them to cover ongoing operating costs can leave the City with fewer options if revenues fall or unexpected costs arise.

Staffed noted that because the City transferred refuse billing to a service provider (reducing both revenues and expenses by $3.4 million), the reserve threshold actually drops, and the City's reserve percentage will end up slightly higher than last year even with current spending.

The $98,000 community events question: Staff flagged roughly $98,000 in potential cuts tied to Parks & Recreation special events—things like Winter Wonderland, Concerts in the Park, Trunk-or-Treat, and Eggcellent Adventure. The total annual net City subsidy for all special events combined is approximately $43,000 (including about $34,600 in personnel costs). Staff isn't recommending eliminating these outright, but is asking the Council for direction on whether to pursue increased sponsorships, add or raise fees, or reduce programming.

Staff reported that events such as concerts, movies and community celebrations provide significant community value but often require City subsidies after staffing and operational expenses are considered. The report suggests that sponsorships, partnerships and other revenue opportunities could help reduce those costs in the future. While special events are not currently on the chopping block, council members requested a detailed breakdown of their costs.

See the table below with the estimated operating expenses, personnel costs, revenues, and overall net City subsidy associated with each major event.

🔗 View the table on LaVerneDaily.org

Part-time staffing: Staff also identified the potential elimination of an administrative support position in the City Manager's office—a recently vacated position. A second position in another department was flagged but staff noted they haven't informed the affected employee and won't unless the Council directs them to make the cut.

Staff explicitly noted that no additional personnel cuts were identified that wouldn't create significant service problems—including the potential for increased overtime in public safety.

What happens next: The City Manager will return to the Council on June 15 with a balanced budget—presented two ways: one that uses reserves to close the remaining gap, and one that doesn't.