City News and Updates

Council Adopts 2016-17 Budget

The Pico Rivera City Council has adopted the City budget for Fiscal Year 2016-17. The $103.8 million spending plan provides funding for essential city services and supports the goals and priorities of our City Council. Funding is provided for public safety, park maintenance, community services programming, economic development efforts, street repair and maintenance, infrastructure upgrades, information technology services, housing support programs, special events, and a host of internal support services such as payroll, human resources and accounting.

The balanced budget for this fiscal year includes a surplus of $340,000. The City’s fiscal health has steadily improved in recent years, as evidenced by the budget surplus and increased reserves.

The adopted budget will provide essential services using $38.1 million in expenditures, balanced against $38.5 million in revenue.

The adopted budget was built upon improvement efforts that had begun last fiscal year. The Fiscal Year 2015-16 budget was developed utilizing “zero-based budgeting.” This approach required each department to justify all of their requested expenditures. This “ground up” approach helped guarantee that each dollar requested, and eventually approved, was needed and served an essential purpose. The current Fiscal Year budget development process continued this “zero-based” approach, making improvements upon the prior year’s efforts and producing a budget surplus.

In addition to the adopted budget surplus, the City will realize additional General Fund savings due to a refinancing of its 2009 Lease Revenue Bonds. These bonds were issued in 2009 to provide citywide park upgrades as well as renovate the County library branch within our City. Taking advantage of low interest rates, the City refinanced these bonds and lowered the annual debt service payment; an effort very similar to refinancing a home mortgage loan.

The refinancing of the bonds will produce $397,000 in additional General Fund annual savings because of the lower interest rates.

“Producing a balanced budget is a priority for everyone here in the City” said City Manager René Bobadilla. “This is just an example of how dedicated and engaged our City Staff is in ensuring we have the funds available to run the City effectively and to provide our residents with services and programs they come to expect.”

The ultimate goal of any budget process is to produce a sound and sustainable budget plan each fiscal year. The long-term goal is to ensure a financially secure future for the City of Pico Rivera and to focus on long-term financial security that will help the City weather any future recessions or possible economic downturns. 

To view the current adopted budget, click here.