Public safety remains the city’s biggest investment in the proposed 2026-27 budget, at $189 million towards police and fire. (photo by Tabor Brewster)

The Beverly Hills City Council held a special meeting on June 3 to discuss the proposed city budget for fiscal year 2026-27. The proposed $695.2 million citywide budget projects approximately $675.4 million in revenue, according to a report by City Manager Nancy Hunt-Coffey. The general fund – the primary operating fund of the city – includes an operating budget of $351.6 million and projects $346.7 million in revenue, leaving a $4.9 million deficit.

Public safety remains the city’s highest expense, at $189 million. The proposed budget allocates $124.9 million to the Beverly Hills Police Department, a 6.8% increase, and $64.1 million to the fire department, a 0.2% increase.

The report allocates $167.9 million to the Public Works Department, a 3.5% increase from fiscal year 2025-26. Approximately $35.5 million is allocated to human resources, a 0.6% increase, and $29.2 million is allocated to community development, a 1% increase.

The proposed budget also allocates $109 million to the capital improvement program across 72 distinct projects, including “water infrastructure upgrades; street, sidewalk and traffic safety enhancements; facility and park renovations; vehicle fleet optimization and replacement; and technology advancements, particularly those bolstering public safety.”

The planned budget includes $171.6 million in city employee salaries and benefits, an increase of approximately $7.9 million, or 4.8%, from fiscal year 2025-26. Personnel costs account for roughly 49% of the city’s general fund spending.

The city’s top general fund revenue sources for fiscal year 2026-27 as listed in the report are property taxes, generating $115.5 million, business taxes, at $65.4 million, sales taxes, at $47.8 million and hotel taxes at $46.7 million.

The anticipated budget includes a 10-year general fund forecast, providing a long-term outlook for the city’s revenue and expenditures. The forecast projects an $8.4 million general fund deficit in fiscal year 2027-28, followed by a $1.9 million deficit in fiscal year 2028-29, before returning to a projected $6 million surplus in fiscal year 2029-30. The report attributes the turnaround to anticipated revenue from planned development projects, including the $10 billion One Beverly Hills luxury development.

Though Beverly Hills is facing anticipated deficits, the city’s general fund reserves are expected to reach $293.9 million by the end of fiscal year 2025-26, which the report described as strong.

“Beverly Hills benefits from strong general fund reserves, a result of the fiscal prudence of current and prior City Councils,” the report stated. “A primary function of these reserves is to provide stability during times of financial stress and resources for strategic one-time needs. The city has preserved and expanded key reserves, including the economic/contingency and budget stabilization reserves. Currently, overall general fund reserves remain above the levels required by city financial policies.”

This is a developing story and will be updated as more information becomes available.

The budget will return to the City Council on June 23 for a final vote on its approval.

To view the proposed budget, visit beverlyhills.granicus.com/ MetaViewer.php?view_id=49&event_id=8101&meta_id=676150.