TO: CITY COUNCIL
FROM: ADAM PIRRIE, CITY MANAGER
DATE: JUNE 9, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
ADOPTION OF THE 2026-28 PROPOSED OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET
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SUMMARY
Staff is pleased to present the 2026-28 Proposed Operating and Capital Improvement Program Budget for City Council consideration.
The proposed budget maintains exiting levels of service and provides additional funding to enhance services in certain areas and to respond to direction from the City Council in addressing their recently adopted list of City Council Priorities & Objectives. The proposed budget also includes funding for additional discretionary payments to CalPERS to pay down the City’s unfunded pension liabilities in the amount of $1.0 million over two years and more than $500,000 in budgeted contributions to add to the City’s Operating and Environmental Emergency Reserve.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, ADOPTING THE 2026-2028 BUDGET AND AUTHORIZING EXPENDITURES AND APPROPRIATIONS RELATED THERETO.
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ALTERNATIVES TO RECOMMENDATION
In addition to the staff recommendation, there are the following alternatives:
A. Request additional information.
B. Direct staff to make changes in the proposed 2026-28 Budget.
FINANCIAL REVIEW
The costs to strategically plan, develop and prepare the budget document, and complete the staff report are estimated at $220,000. These costs consist of staff time and are included in the operating budgets of all departments.
ANALYSIS
The proposed 2026-28 Operating and Capital Improvement Program budget includes total revenues and transfers in of $72.6 million in 2026-27 and $74.3 million in 2027-28. General Fund revenues represent a significant portion of these totals, amounting to $41.3 million in 2026-27 and $43.1 million in 2027-28.
Budgeted expenditures for 2026-27 total $78.2 million, and in 2027-28 expenditures total $77.3 million. These expenditures fund the City’s operating costs, proposed capital improvement projects, and debt service payments. General Fund expenditures are budgeted at $38.2 million in 2026-27 and $40.4 million in 2027-28. Taking General Fund transfers out to other funds into consideration, expenditures and transfers out for 2026-27 total $41.0 million and for 2027-28 total $42.9 million. These operating transfers are to fund debt service costs, the subsidy of the City’s Landscape and Lighting District, and to fund alleyway restoration projects through the Capital Improvement Program (CIP).
This report includes the following attachments relating to the adoption of the 2026-28 Operating and Capital Improvement Program Budget:
Attachment A is the resolution adopting the 2026-28 City Budget and authorizing expenditures and appropriations.
Attachment B is the City Manager’s Budget Message which provides a summary of the process and contents of the budget, a summary of projects for the upcoming two-year budget cycle and proposed organizational changes for the next two fiscal years
Attachment C is the proposed City of Claremont Operating and Capital Improvement Program Budget for 2026-28.
Prior to consideration of the proposed 2026-28 Operating and Capital Improvement Program Budget, the City Council will conduct a Budget Workshop, scheduled to take place at 5:00pm on Tuesday, June 9, 2026, in the Claremont City Council Chamber. The Budget Workshop will include a presentation from staff to provide an overview of the proposed budget, as well as detailed information about each City department’s budgeted operations for the next two years.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following: Council Priorities, Economic Sustainability Plan, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Adam Pirrie
City Manager
Attachments:
A - Resolution Adopting the 2026-28 Budget and Authorizing Expenditures and Appropriations
B - City Manager’s Budget Message
C - Proposed 2026-28 Operating & Capital Improvement Program Budget