The Carson City Council this week officially approved a $156.9 million general fund budget for the 2026-27 fiscal year, marking the sixth consecutive year the city has had a structurally balanced budget.

The fiscal year will begin on July 1.

“Maintaining a balanced budget for six straight years is not just a statistical victory; it is a testament to our resilient leadership and disciplined choices,” Carson Mayor Lula Davis-Holmes said in a written statement. “Navigating the economic whiplash of a global pandemic, our local challenges, and the historic inflation that drove up the cost of doing business could have easily derailed our city’s finances and team. Instead, Carson continues to stand firm, prioritizing essential services and proving that local government can be both compassionate and fiscally steadfast.”

Public safety and emergency management will continue to be the city’s priority, with a $37.3 million investment, according to a staff report created by Finance Director William Jefferson. This includes absorbing a 2.3% service cost increase to fully fund the city’s $27.6 million Los Angeles County Sheriff’s Department contract, “ensuring neighborhood security is never compromised by economic strain,” a city press release said.

The other two departments that receive the most funding are Public Works, with $29.2 million; and Community Services, Recreation and Park Maintenance, with $29.2 million.

The Public Works budget is actually 12.5% lower than the previous fiscal year because of the completion of certain projects. The Community Services, Recreation and Park Maintenance budget, on the other hand, is 8% higher than last year because of an increase in recreational programs, community services and maintenance activities throughout the city.

The largest budgetary changes will be in the city clerk’s office, city attorney’s office and the Human Resources and Risk Management Department, according to the staff report.

The city clerk’s office will see a 33.7% increase, resulting in a close to $2.6 million budget. This is primarily because of anticipated ballot measures and election-related expenses in the upcoming fiscal year.

The city attorney’s office will have a 25.6% decrease, resulting in a $2.9 million budget. The reduction reflects lower anticipated legal costs and efficiencies in legal service expenditures compared to last year.

The Human Resources and Risk Management Department will see a 16.9% increase, resulting in a close to $8.5 million budget. The increase will go towards supporting recruitment, employee development programs and ongoing workforce management.

There is also a $630,126 special event budget – the same as the previous fiscal year. This includes funding for the annual Jazz Festival, Country Western Fair, Winterfest, Cinco de Mayo, FamFest, Philippine Independence Day, Juneteenth, Samoan Heritage Day and the Mayor’s State of the City Address.

The largest amount of funding will go to the Country Western Fair, $88,235; Philippine Independence Day, $81,407; and the State of the City Address, $80,000. In the 2025-26 fiscal year, however, the city went over-budget by about $200,000. This balanced out with the events bringing in $269,127 of revenue.

“This reflects the city’s continued investment in programs and activities that strengthen community engagement, celebrate cultural diversity, and provide recreational and educational opportunities for residents,” the press release said. “By carefully matching ongoing expenditures with predictable, ongoing revenues, Carson has built a model of financial sustainability that ensures the city is not just surviving today’s economic climate but actively thriving.”

Besides these events, other revenue will come from sales taxes, property taxes, Measure K funds, Measure R funds, licenses and permits, Measure C funds, fines and fees, transient occupancy tax, and franchise fees.

The franchise fees for 2026-27, however, are projected to decrease by about 20.6% because the Phillips 66 refinery has closed. Despite this, the city is projected to see a revenue surplus of more than $470,000.

“The city of Carson is positioned for a stable financial outlook in fiscal year 2026-2027, supported by modest revenue growth and controlled expenditures that maintain a structurally balanced budget,” the staff report said. “While certain revenue categories reflect variability, the overall outlook remains positive, and the general fund reserve continues to provide a solid foundation to navigate economic uncertainties.”

The City of Carson’s Open Finance portal, which tracks the city’s financial activity, can be found here: https://carsonca-of.finance.socrata.com/#!/dashboard.