Calimesa council adopts FY2026–27 budget, keeps large reserves and funds public safety

Calimesa City Council adopted the city's fiscal year 2026–27 operating budget, capital improvement program and successor-agency budget at its June 1 regular meeting.

Finance Director Celeste Reed presented a budget that staff said includes a small operating surplus of about $5,500 and projects available reserves of roughly $6.9 million by June 30, 2027. Reed said one-time expenditures in the proposal total roughly $118,000 — mainly the paramedic incentive program approved May 18 — and discretionary transfers to capital and vehicle/IT funds total about $785,000.

Reed told the council that the city's top three general-fund revenue sources — property tax, sales tax and vehicle-in-lieu property payments — account for about 77% of the city's general-fund revenue, and that the city is seeing growth that is slowing compared with recent years. "Our operating surplus is about $5,500," Reed said during the presentation.

Why it matters: Council members and staff framed the budget choice as a balance between continuing investments (public safety, equipment and one-time projects) and maintaining a high reserve level. Staff and council emphasized that Calimesa is keeping a larger-than-typical reserve percentage to ensure the city can respond to emergencies and one-time obligations without relying on external assistance.

City Manager Will Cobalt explained the administration's forecasting approach: it does not assume new development revenue until projects are finalized and cautioned that modest annual revenue increases (2–5%) will not cover large service expansions. "When you look at your revenue increases, that's just based on the current tax base ... we're not accounting for that right now," Cobalt said.

Public-safety costs were a focal point: the budget assigns roughly $7.2 million to public safety (police, fire and animal control), about 63% of overall expenditures. Reed outlined that increases in the sheriff contract and expanded fire services (advanced life support and equipment upgrades) account for much of the growth in that category, and noted a federal grant partially offsetted more than $200,000 of SCBA equipment purchases.

Council action: Council voted to adopt three resolutions read into the record: Resolution 202616 setting the FY2026–27 appropriation limit; Resolution 202617 adopting the proposed FY2026–27 general fund operating budget, special revenue funds budget and capital improvement program (and amending FY2025–26 as specified); and Resolution 2026-01 adopting the successor agency budget for FY2026–27. The clerk recorded approval of each resolution.

What's next: Staff will implement the approved spending plan and return to council with follow-up items (including details on represented-employee negotiations when available). Council also asked staff to develop a more detailed longer-term financial forecast and indicated interest in a future workshop to discuss multi-year fiscal strategy and major capital needs.

Sources: Finance Director Celeste Reed; City Manager Will Cobalt; staff presentations and council roll call at the June 1, 2026 council meeting.