Biennial Budget Approved

By a majority vote during a City Council meeting held this past June, the City Council adopted a two-year (Biennial) operating budget for fiscal years 2025-26 and 2026-27. This past June, the City Council formally adopted the second year of the Biennial Budget after much discussion through Study Sessions and a Public Hearing.

The Biennial Budget has been successfully used since 2021 as a road map for the anticipated future revenue and planned expenditures, allocating resources and reflecting the City Council’s priorities and policies for the next two fiscal years.

The development of the City’s FY 2025-27 Biennial Budget began in December 2024, which was mid-year for the 2024-25 fiscal year. During that time, City Administration reviewed the spending for that period. It determined the fiscal health of the general fund in order to start developing the new fiscal year budgets.

In creating the Biennial Budget, City Administration followed the priorities of the City Council to establish a framework for the next two years. Those priorities include: Fiscal and Organizational Sustainability, Economic Development and Land Use, a dedication to infrastructure, prioritizing Health, Wellness, and Safety, and an ongoing commitment to Community Engagement.

Over the past fiscal years, the City has successfully navigated local economic challenges without compromising the quality or level of services provided to the community. The City continues to excel in many areas and is fortunate to have avoided the cost-reduction measures many other local governments faced in the last few years. However, City Administration continues to be resourceful and creative in maintaining and investing in current services, operations, and infrastructure while adapting to the future needs of this community.

As we begin the new fiscal year, the 2025/2026 budget furthers the City’s mission to deliver outstanding municipal services that are responsive to the entire community and consistent with the City’s history, culture, and unique needs. “Creating a transparent and fiscally responsible budget is important to everyone involved,” said City Manager Steve Carmona. “We have a responsibility to our tax-paying residents to sensibly spend in order to maintain the quality of services we provide. This budget by far reflects that responsibility,” said Carmona.

The approved Biennial Budget includes expenditures of $63.5 million for FY 2025-26, and $64.5 million for FY 2026-27. Within those two-year expenditures, nearly a quarter of the spending will be allotted for the City’s public safety, which includes the Sheriff’s contract.

“Public Safety will always be a priority in the City when creating the annual budgets,” said Carmona. “Each year, the City Council will make it a point to invest in the City’s safety.”

The remaining budget will be allocated across City departments to support programs and services. The City’s Public Works Department will receive the second-highest allocation of funds from the general fund, fulfilling the guiding principles of the City Council to ensure ongoing attention to City facilities and infrastructure.

With the passage of the Biennial Budget, Mr. Carmona thanked the City Council for their guidance during the budget preparation process. Mr. Carmona stated that the City is committed to exploring every option to maintain and improve the financial health of the organization, as well as the high level of service to the community.

The approved Biennial Budget is available on the City’s website at pico-rivera.org.