San Fernando adopts balanced FY2026–27 budget after months of debate over pensions, events and programs

San Fernando's City Council adopted the FY2026'027 annual budget on June 29 after a multi-hour special meeting that focused as much on community events and program priorities as on the spending plan itself. The council approved the balanced budget package by roll call in a 3
2 vote: Council Members Lopez, Mendoza and Vice Mayor Victoria Garcia voted yes; Council Member Solorio and Mayor Joe Farardo voted no.

The budget presented by staff showed general fund revenues of roughly $29.98 million against expenses of about $29.90 million, leaving a narrow cushion of approximately $75,600. Staff emphasized rising liabilities, including a near-$388,000 increase in the CalPERS bill and nearly $500,000 higher liability-insurance costs. Departments recommended a small set of enhancements judged to preserve core services: an IT server lease, codifying the new zoning code, police tuition reimbursements and council technology replacements. Staff said after all adjustments the consolidated citywide budget is about $58.44 million including general, special and proprietary funds.

Council debate centered on two practical trade-offs: reducing event spending to shore up long-term pension obligations, and preserving community programming such as youth after-school and recreation services. Council members discussed several options for special events funding'including scaling back Fourth of July programming (the drone show was the most costly element), combining the city birthday with a summer concert, and pausing some one-off festivals'and instructed staff to update event spreadsheets and return with final line items. The mayor and other members also identified an available one-time allocation from the Independent Cities Finance Authority (ICFA) that could provide a modest temporary offset for event costs.

On the record Mr. Padilla delivered a staff summary about a prior independent personnel investigation, saying the firm "found no violation of any law or city policy" regarding an allegation about selection influence; he stated no reportable action was required. Council also adopted a separate procedural manual and made targeted budget-equity decisions, while directing staff to return with follow-up analyses on key financial risks, including the city's OPEB/pension exposure.

The vote and next steps: the budget passed as revised, with instructions for staff to reflect council's event priorities in the final adopted document, prepare a more detailed plan for any use of ICFA monies, and bring back quarterly updates on the city's unfunded liabilities and on contingency plans if a major water well must remain offline. A public hearing portion was held and closed prior to the adoption vote.

What's next: staff will implement the council directions around special events and return with updated budget materials and the requested financial contingencies at future meetings. The council set a schedule for additional follow-ups on pensions and capital needs.