Lafayette, CA: The Lafayette City Council will vote on Monday night, June 23, 2025 on whether to approve the $43.3 million Operating Budget for fiscal year 2025-26 which includes $25.5 million in General Fund expenditures and transfers.
Last November, Lafayette voters approved Measure H – a temporary 1/2 cent sales tax – to support ongoing City programs. The additional sales tax went into effect on April 1, 2025 and will continue for 7 years until March 30, 2032. The passage of Measure H has significantly eased the budget constraints the City faced last year, enabling the City to maintain basic services at their current levels.
Revenues for FY24-25 are expected to be on budget and include an estimated $450K in Measure H revenue collected in April through June. The FY25-26 revenue budget includes an additional $2.4M in Measure H funds but is otherwise roughly equal to the prior year.
Measure H revenues will be used as follows:
- Roads & Drains – $1M
- Core Area Maintenance – $112K
- Stormwater Pollution – $322K
- Police – $479K
- Insurance – $293K
- Infrastructure Maintenance – $220K
The budget for Measure H was developed so that it aligns with what the Council has consistently articulated are the main drivers of the structural budget deficit the City faced prior to passing Measure H. In addition, a Citizens Oversight Committee, to be established later this year by the City Council, will review Measure H revenues and expenditures to ensure that the funds are being spent on as the Council intends.
At the end of FY 2025–26, the General Fund reserve balance is projected to be $18.1 million, representing 80% of total General Fund expenditures. This exceeds the City’s minimum reserve target of 60%. However, staff has recommended that the Council refrain from allocating any portion of the excess reserve until a comprehensive infrastructure assessment is completed and the City has a clearer understanding of the funding needed for deferred maintenance.
The purpose of the reserve is to provide a significant financial buffer for unanticipated events such as wildfires or earthquakes, and to help maintain the City’s creditworthiness.
The City’s five-year budget forecast indicates that reserve levels will remain above the 60% target through FY 2030–31. However, beginning in FY 2027–28, the City is expected to face small but growing budget deficits, highlighting the need for continued fiscal discipline. Even with Measure H, limited capacity exists to fund new or expanded programs.
As part of the budget adoption, the City Council considered requests for funds to:
- Stage school buses at elementary schools on red flag days
- Clear brush and overgrowth from several evacuation routes
- Reclassify a current part-time Admin Assistant position from temporary to regular
- Contribute to the traffic calming sinking fund
- Relieve the School Board of their contribution to the Crossing Guard program
For more information, see the City Council meeting agenda for June 23, 2025 online at https://lafayette.granicus.com/GeneratedAgendaViewer.php?event_id=798dcb60-2a0d-4c56-93ed-c83f596cf044
Please refer to Item 15b on the meeting agenda for the staff report, the proposed budget book and how the public can participate in or watch the meeting.
