San Luis finance director: proposed FY27 budget totals $156M in spending, home rule needed to avoid $8.1M cuts

Director of Finance Rola Antinas presented the City of San Luis’s proposed fiscal year 2026–27 budget at a council budget retreat, saying the proposed plan would include roughly $145,000,000 in revenues and $156,000,000 in expenditures.

Antinas said the budget process began with guidelines in October, department requests in January and a detailed staff review in February before the council retreat and a tentative budget in June. “This process ensures that the budget is well planned, collaborative, and aligned with council directions,” she said.

The presentation flagged several priorities for the proposed budget: maintaining current service levels, recruiting and retaining employees, infrastructure investment (roads, water and wastewater), and continued emphasis on public safety, parks and economic development. Antinas noted personnel costs are the largest operating driver: “Salaries and related expenses represent one of the largest components of the budget and continue to increase,” she said.

Antinas warned the council the city would exceed the state’s annual expenditure limitation under current proposals. She reported the state limit for the city is approximately $68,700,000 and said, “Without the home rule option, we would be required to reduce the budget by approximately $8,100,000 which would require significant reduction to city services and operations.”

On revenues, Antinas showed sales tax remains the largest general fund revenue source but can be volatile month to month. She said contracting activity was the main driver of lower receipts in October, December and January and that certain grant‑related revenues accounted for declines in an "other revenues" category compared with the prior year.

Antinas also summarized compensation investments the city made in 2025 totaling about $2,000,000 and presented two salary approaches for FY27: a citywide seniority‑based adjustment with an estimated cost of about $666,000, and a targeted two‑part approach totaling roughly $1,250,000 that would separate civilian and public‑safety adjustments. She stressed the choices affect long‑term obligations and reserve planning.

The director closed by presenting five‑year financial projections that, under current assumptions and excluding possible reductions in state shared revenues, show the city may not be able to maintain a six‑month operating reserve by FY28–29.

Next steps: staff will use council feedback from the retreat to refine the tentative budget and return materials ahead of the June tentative adoption. The council recessed and will reconvene tomorrow to continue retreat discussions.