San Fernando presents FY 2026-27 proposed budget theme, warns of limited revenue growth and rising contract costs

Erica Milton, representing the city's administrative services office, presented the proposed fiscal year 2026-27 budget theme to the Transportation and Public Safety Commission, calling the theme "maintaining core services during challenging economic conditions." Milton said revenue growth is projected at roughly 2'to 3 percent and that external pressures have tightened available funds.

Milton described several cost drivers that reduced the city's available discretionary funds: a contract increase for fire services of approximately $360,000 and an insurance cost increase of roughly $500,000. "Those two numbers together absorbed over 800,000 closer to 900,000 of what would have otherwise been available for us to use in the city for expanded programs, services, enhancements, software, staffing," she said.

Milton said the general fund will remain central to city operations and is projected at about $29'$30 million for the coming year; the proposed total budget across funds is a little over $59 million. She explained that capital projects include carry-forward funds from prior years (about $40 million in ongoing capital work) and that some grants are multi-year and reimburseable, requiring tracking and monitoring by city staff.

The budget schedule calls for department study sessions: Public Works on Monday, June 8 and Police on Monday, June 15, both beginning at 5:00 p.m., with an anticipated presentation of a budget for adoption on June 15. Milton encouraged commissioners and the public to attend department-level presentations and use tools such as the My San Fernando app to provide input and data.

On grants and project funding, Milton said the city manager's office and administrative services coordinate grant identification, application and reimbursement tracking. She highlighted an ARPA (federal) requirement: the city must expend ARPA funds by Dec. 31 of the current calendar year.

Milton closed by inviting commissioners to participate in remaining study sessions and to submit inquiries; she flagged upcoming material on software evaluations and cross-departmental uses of geospatial tools to produce heat maps and layered collision data for grants and decision-making.