La Verne is heading into fiscal year 2026-27 with a projected structural budget gap of approximately $233,629. A structural gap means ongoing revenues are not keeping pace with ongoing expenses and requires deliberate action to close.

That's what Finance Director Christy Lopez and City Council were wrestling with in both the May 18 budget session and the June 1 follow-up. The concern is that plugging it with one-time reserves buys time but doesn't fix the underlying problem.

The key word is structural. It's not a gap caused by a surprise cost or a temporary dip in revenue. It's the kind of imbalance that will keep showing up unless something fundamental changes—either spending gets cut, revenues increase, or both.

The City's General Fund—the account that pays for most day-to-day services such as police, fire, parks and administration—is projected to spend $49,061,906 while bringing in $48,828,277 in revenue, creating the shortfall.

To help close the gap, City Manager Ken Domer said the City recently eliminated a vacant part-time clerical position in the City Manager's Office and expects a second position to transition to a full-time job elsewhere. Together, those changes are expected to save about $40,000 to $50,000 annually. Domer is also working to identify roughly $150,000 in additional General Fund reductions before the budget is adopted.

How Big Is the City's Budget?

La Verne's proposed operating budget totals approximately $91.1 million.

That figure is lower than the City's gross appropriations of $95.2 million because it removes about $4.1 million in interdepartmental charges—money that is transferred between City departments and would otherwise be counted twice.

For example, internal service funds such as Equipment Maintenance and Risk Management bill other City departments for services. Those dollars appear once as an expense in the department paying the bill and again as revenue in the fund receiving it. Removing those internal transfers provides a clearer picture of what the City actually plans to spend on services and operations.

Council, Community Weigh-In

During the June 1 City Council meeting, council members, City staff and residents discussed potential ways to close the City's projected budget gap while preserving services residents value most. The conversation touched on everything from public safety and community events to facility rentals, user fees and long-term financial sustainability.

As council members reviewed potential cost-saving measures, they repeatedly emphasized the challenge of maintaining services in a city with limited revenue sources.

"What I've heard a lot from our residents is how important our safety is—with our fire being in-house and our police being in-house," Council member Rick Crosby said. "We live in a city that does not have a car dealership, that does not have a Costco, that does not have hotels. So we don't see the revenue that some other cities see," Council member Wendy Lau added.

Council members expressed little appetite for eliminating community events, which receive an estimated annual City subsidy of about $43,000 through the Parks & Recreation Department. Instead, they directed staff to explore consolidating events, expanding sponsorship opportunities and considering modest participation fees where appropriate.

Lau suggested creating bundled sponsorship packages rather than seeking support for events individually throughout the year. However, she acknowledged local businesses are facing economic challenges of their own, noting the Fourth of July committee has already experienced declining sponsorship support from longtime contributors.

Staff also identified opportunities to increase revenue from City facilities and partnerships. Parks & Recreation Director Yvonne Duran said the Oak Mesa preschool program is relocating to Veterans Hall, allowing the former preschool space to become rentable space.

Duran also said the City is formalizing agreements with organizations that use public facilities, including VFW Post 12034 and local youth sports leagues. She noted La Verne currently charges significantly less than many neighboring cities for field use.

"A lot of these organizations pay upwards to $15,000 a season. We get pennies right now," Duran said. "So we need to look at that in terms of sustainability, our infrastructure, how we're going to move forward."

Not everyone agreed with the direction of the budget discussion. During public comment, resident Pam Berry questioned why reductions often appear to focus on resident services while employee costs continue to rise.

"Why is it always that the thing related to the residents is first — that the expenses are for the residents first, that the trimming is for the residents first?" Berry asked.

Council members generally agreed the City should preserve its financial reserves while continuing to look for operational efficiencies. Crosby said he would like to maintain reserve levels between 28% and 30%, and Council member Steve Johnson concurred.

"I agree that we want to try to keep as many things as possible, but it's also the reality of is it sustainable?" Lau said. "And are people going to have to get real uncomfortable and comfortable with change?"

Mayor Pro Tem Meshal "Kash" Kashifalghita encouraged staff to continue identifying efficiencies through collaboration and consolidation, adding a lighthearted reminder often shared by Finance Director Christy Lopez: "Change is good, but spare change is better."