Pico Rivera council receives preliminary $65 million budget, approves it unanimously

The Pico Rivera City Council on June 9 received a presentation on the city’s preliminary FY 2026–27 budget and voted unanimously to approve it for further refinement ahead of final adoption on June 23.

The city’s director of administrative services presented the plan, saying staff proposed $65 million in revenues for 2026–27 and a balanced general-fund budget that includes a 7% contribution to the capital improvement program totaling $4.5 million. The contribution is split into roughly $3 million for PMP projects and $1.5 million for the Smith Park Aquatic Center.

The presentation emphasized conservative revenue assumptions amid national and state economic uncertainty. Staff highlighted that sales tax remains the largest single revenue source (about 41% of general-fund revenue) but is sensitive to consumer behavior; property tax was projected to increase roughly 10%, helped by an expected $955,000 in annual property-tax revenue resulting from the dissolution of the city’s successor agency.

The director also told the council that staff realigned certain salary and maintenance costs to enterprise funds to reduce general-fund pressure, producing one-time adjustments that lower general-fund salary and benefit costs by approximately $710,000. The proposal includes a net increase of two full-time positions in public works and two part‑time staff for the senior center.

Council members asked for clarifications about potential county-level sales-tax proposals (referred to in the meeting as Measure ER) and contingency planning if sales-tax receipts decline; staff said the city cap cannot increase and that any county measure proceeds would flow to the county, not the city, and reaffirmed that the city is monitoring sales tax and pursuing revenue diversification measures such as business-license enhancements after Measure AB.

Mayor Pro Tem Dr. Sanchez praised the city’s fiscal position, saying the council has been “very conservative” while still investing in community projects. After brief discussion, the council moved to approve the preliminary budget for refinement and return, and the motion passed on a roll-call vote of 4–0 (Council members Laura and Lutz, Mayor Pro Tem Dr. Sanchez and Mayor Kamacho voting yes).

Votes at a glance
- Preliminary FY 2026–27 budget: motion to receive and file/approve for further refinement — passed 4–0.
- Landscape & Lighting Assessment District No. 1 resolution: passed 4–0.
- Paramount Mines Landscape Maintenance Assessment District resolution: passed 4–0.
- Status update on job vacancies under Assembly Bill 2561: received and filed — passed 4–0.

What happens next: Staff will update the preliminary numbers and return to the council for final adoption at the June 23 meeting. The director told the council that staff will provide a five‑year general‑fund forecast and any cleanup adjustments between now and final adoption.