The City Council approved the Fiscal Year 2025–2026 Budget at its meeting on Monday. The adopted budget includes $16 million in additional funding for the Jubilo Village 95-unit affordable housing project at 4464 Sepulveda Boulevard. It also allocates $179,300 for a new PRCS Senior Management Analyst position to assist with grant efforts, though, that position is contingent on voter approval of Measure CL in the August 26, 2025, election. The budget also appropriates $250,000 to potentially support a consultant to help the City increase community participation in the budget process, which is subject to further City Council discussion and approval.
The budget outlines $199.3 million in proposed General Fund expenditures, with an estimated $177.6 million in General Fund revenue. To address the projected $21.9 million shortfall, including a $14.9 million structural budget gap, the City will draw from its reserves. As part of this action, the Council approved a resolution to draw funds from the Contingency Reserve to decrease it from the target 30% to 21.6% of the General Fund Operating Budget for Fiscal Year 2025-2026.
The City Manager will present a plan within six months to replenish the reserve over the next five years. The details of that plan will depend in part on the outcome of Measure CL, the proposed 0.25% local sales tax. Regardless of the election results, the City will likely need to consider additional spending reductions to fully restore the Contingency Reserve.
Vice Mayor Freddy Puza and Council Members Yasmine-Imani McMorrin and Bubba Fish voted in favor of the full budget, including the Jubilo funding and enhancements. Mayor Dan O’Brien and Council Member Albert Vera, Jr. voted against the enhancements but expressed support for the base budget without them.
The beginning General Fund balance as of July 1st is now estimated at $135.5 million, about $5 million higher than previously projected due to unexpectedly high real property transfer tax revenue from the sale of a major commercial property in April. The estimated ending fund balance is $113.6 million, approximately $4.8 million higher than in the May 12th proposed budget, once all adjustments are factored in.
As part of the budget approval process, Culver City Human Resources provided a presentation on the status of job vacancies in the City. With improved recruitment efforts for streamlining and modernizing recruitment, as well as improved retention efforts, Culver City has an 6% to 8% vacancy rate, down from 22% several years ago.