by Andrew Alonzo | aalonzo@claremont-courier.com

The Claremont City Council unanimously ratified its operating and capital improvement program budgets for fiscal years 2026-27 and 2027-28 on Tuesday.

Revenues

The city’s incoming funds are estimated at $68.5 million in 2026-27 and $70.5 million in 2027-28, fueled primarily by general fund and other revenue sources, according to figures at portal.laserfiche.com.

Estimates for internal service funds are $4 million in 2026-27, $4.1 million in 2027-28; special revenue, $7.4 million in 2026-27, $7.2 million in 2027-28; enterprise, $11.6 million in 2026-27 and 2027-28; capital projects, $574K in 2026-27, $571K in 2027-28; and landscape and lighting district at $3.6 million in 2026-27, $3.7 million in 2027-28.

General fund revenues in Claremont are projected at $41.3 million in 2026-27 and $43.1 million in 2027-28. Revenues are made up of sales, property, utility user, transient occupancy, business license taxes, permitting fees, and franchise taxes, among other sources.

Property tax revenues are projected at $15.2 million in 2026-27, $15.9 million in 2027-28; sales tax $9.5 million in 2026-27, $9.9 million in 2027-28; utility user tax $5.9 million in 2026-27, $6.2 million in 2027-28; transient occupancy tax $2 million in 2026-27, $2.1 million in 2027-28; business license tax $1.25 million for 2026-27, $1.29 million in 2027-28; licenses and permit fees $2 million for 2026-27, $2.1 million for 2027-28; charges for services $1.9 million in 2026-27, $2 million in 2027-28; miscellaneous revenues $1.6 million in 2026-27, $1.7 million in 2027-28; franchise taxes $770K in 2026-27, $800K in 2027-28; fines and forfeitures $502K in both years; intergovernmental revenues $250K in 2026-27 and $268K in 2027-28; and other taxes $229K in 2026-27 and $250K in 2027-28.

Absent this year was the city’s allocation of federal American Rescue Plan Act funding granted to cities during the COVID-19 pandemic, which have to be spent by December 31, 2026.

Estimates do not include transfers in.

Expenditures

Projected expenditures are $74.1 million for 2026-27 and $73.5 million for 2027-28.

Expenditures include personnel, pension, payments to the California Public Employees’ Retirement System, debt service costs, and capital improvement projects, among others. Expenditure estimates include capital improvement projects at $5.7 million in 2026-27, $5.1 million in 2027-28; other operating expenses $28.8 million in 2026-27 and $26.7 million in 2027-28; and debt service collections, $1.3 million in 2026-28.

Coming capital improvement project expenditures include Americans with Disabilities Act bus stop, biking, and pedestrian road improvements; utilities grounding work; street maintenance; sidewalk mitigation; sewer assessments and repairs; and an Oak Park Cemetery expansion.

A majority of expenditures are covered by the general fund. General fund expenditures are estimated at $38.2 million in 2026-27 and $40.4 million in 2027-28.

Public safety is due to receive $17 million in 2026-27, $17.8 million in 2027-28; general government, $5.3 million in 2026-27, $6.1 million in 2027-28; community development, $5 million in 2026-27, $5.3 million in 2027-28; recreation and human services, $3.6 million in 2026-27, $3.7 million in 2027-28; community services, $3.1 million in 2026-27, $3 million in 2027-28; administrative services, $2.9 million in 2026-27, $3 million in 2027-28; and financial services at $1.2 million in 2026-27 and $1.3 million in 2027-28.

“The remaining operating expenditures of $67,055,438 in 2026-27 and $67,094,532 in 2027-28 fund a broad variety of services and programs, including building, planning and engineering, public safety, sanitation, streets, right-of-way, park maintenance, youth and senior services, and recreation, as well as the administrative costs of operating these programs and services,” read a staff report.

Other projected expenditures include $500K each year to CalPERS for unfunded pension liabilities; and $271,556 in 2026-27 and $262,408 in 2027-28 to Claremont’s emergency reserve. The city’s reserves are currently at $11.6 million.

Estimates do not include transfers out.

Though the city touts its general fund as a balanced budget, overall expenditures exceed revenues in the upcoming years. Taking the ending fund balance of $5.6 million in 2026-27 and $3 million in 2027-28, the city is to make up about $8.6 million in total.

“The budgets for funds that support large capital improvement projects such as street maintenance and other City infrastructure may have budgets where expenditures in that year exceed revenues expected to be received in the same year,” wrote Claremont Finance Director Jeremy Starkey in an email. “This is a result of the City accumulating fund balance in those Special Revenue, Enterprise, and Capital Project Funds over a number of previous years which allows us to provide a funding source for these large and costly projects. This is why you would see where total expenditures exceeds total revenues when evaluating the budget across all funds.”

After soliciting input from the community, the council reaffirmed its seven priorities for 2026-28 in March: preserving the city’s natural, cultural and historic resources; maintaining financial stability; investing in the maintenance and improvement of local infrastructure; ensuring safety through community-based policing and emergency preparedness; increasing neighborhood livability and expanding business opportunities; promoting community engagement through transparency and communication; and developing anti-racist and anti-discrimination policies including a plan to achieve community and organizational diversity, equity and inclusion.

“This budget reflects priorities that [the public] gave to us,” Council member Jed Leano said Tuesday. “We are prioritizing goals and programs and infrastructure that you came to us [with] and said this was important.”

Three council seats up for grabs this year

The council also voted 5-0 to adopt a resolution to place the seats for Claremont districts 2, 3, and 4 on the November 3 general election ballot. Seeking re-election are Mayor Jennifer Stark in district 3 and Reece in district 2. Council member Jed Leano will not seek reelection in district 4.

The nomination period for City Council candidates to file paperwork with the LA County Clerk’s office runs July 13 through August 10.