The Malibu City Council unanimously approved a $110.3 million budget for fiscal year 2025-26 Monday night, with significant funding allocated toward ongoing recovery efforts from recent wildfires and major infrastructure improvements.
The budget includes $81.8 million in revenue and $110.3 million in expenses, with General Fund revenue of $60.1 million and General Fund expenditures of $72.3 million. The spending plan reflects the city's continued response to the Franklin and Palisades fires that devastated parts of the community.
"I've heard this comment several times about residents aren't getting what they need for fire rebuilds, and I think it would be good if we can have some way of quantifying what it is the residents need," said Mayor Marianne Riggins during the meeting.
The budget allocates $10.07 million for rebuild expenses across multiple departments, plus an additional $8.4 million for disaster-related capital improvement projects. These funds will support contract planners, building inspectors, plan checking services, and debris removal operations.
Mayor Pro Tem Bruce Silverstein emphasized the city's strong financial position, noting that Malibu's "fiscally conservative approach has left it in a strong financial position, well above extremely conservative reserve numbers."
The spending plan includes seven new personnel positions and a 3 percent cost-of-living adjustment for staff. Property tax revenue, which has steadily increased over recent years, remains a key funding source at $19.4 million.
Council members raised concerns about specific budget items, including the $5 million cost for a 12,500-square-foot skate park. Council Member Steve Uhring questioned the expense, noting that Long Beach built a park twice the size for the same cost and suggesting the need for a "contract negotiator."
The budget also includes $1.1 million for specialized technical advisors to support technology updates, administrative policy updates, and strategic resiliency plans. An additional $220,000 was allocated for potential office space leases to accommodate increased staffing needs during rebuild efforts.
Fire recovery efforts dominate much of the spending, with $7.8 million specifically allocated for Palisades Fire recovery operations, including $2 million for planning services, $2.5 million for environmental and sustainability department services, and $685,000 for public works projects.
The city's capital improvement program totals $18.6 million, with projects including PCH signal synchronization, a permanent skate park, and various road and infrastructure improvements. Much of this funding comes from outside sources and grants.
Riggins highlighted the potential benefits of a proposed rebuilding authority, saying it could help "bring down the cost of reconstruction," noting that current rebuilding costs range "between $1,000 and $1,200 a square foot to rebuild in Malibu."
The council also addressed ongoing challenges with homeless outreach services, budgeting $425,000 for 33 homeless individuals. Silverstein defended the expenditure, explaining that when he and Uhring "were first elected four years ago, there were in the neighborhood of 300 homeless in Malibu" and the investment has "steadily decreased" those numbers while other areas have seen increases.
General Fund reserves are projected to decrease to $51.8 million by June 30, 2026, down from $58.9 million, primarily due to disaster response costs. However, this still exceeds the city's goal of maintaining reserves at 50 percent of budgeted expenditures.
The budget maintains funding for various community services, including transportation services for seniors, recreation programs, and park maintenance. Revenue sources include property taxes, transient occupancy taxes, sales taxes, and various permits and fees.
Council members expressed cautious optimism about federal reimbursements, with Silverstein noting uncertainty about FEMA funding given current political dynamics, saying the city should "plan for the worst and hope for the best."
The budget takes effect July 1, 2025.