The reduction in funding includes the proposed “reallocation” of all members from Fire Station 6, a rapid response unit

By Hannah Elsmore
The San Diego Union-Tribune

EL CAJON, Calif. — El Cajon firefighters and crime lab technicians raised concerns about proposed cuts Tuesday as the City Council reviewed a preliminary $104.3 million general fund budget for fiscal year 2026-27 that calls for about $2.5 million in cuts to balance the budget and avoid draining reserves.

Anticipating $105.7 million in expenditures, officials said the $1.46 million shortfall was expected as revenue has fallen short of spending in the last four years.

“We did see this coming,” said Clay Shane , the city’s director of finance. “These mitigating actions, austere in some cases, will likely need to continue in the near future in order to keep the General Fund approximately balanced.”

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The proposed budget would also pull about $1.5 million from the city’s general fund carryover reserve, bringing the unallocated reserve amount to $6.9 million for the upcoming fiscal year.

What’s left is about $53.4 million in reserves formally designated for specific uses, including $13 million for retirement obligations, $20.2 million for “economic uncertainty” and a $20.2 million operating reserve fund. Those funds cannot be spent unless specific conditions are met.

While those projected balances align with El Cajon’s policy to maintain reserves equal to about 20% of expenditures — roughly $20 million for fiscal year 2026-27 — officials warned against dipping into the carryover pool because the remaining reserve funds cannot be freely used.

“This total is misleading because three of the categories have prior policy commitments, leaving only the carryover reserve amount available,” said Autumn Reburger, the city’s Principal Fiscal Analyst.

El Cajon’s main stream of revenue is sales tax, with property taxes also making up a significant chunk of the income stream. Although the proposed budget anticipates $33.3 million in revenue from sales taxes and an additional $13.4 from Prop J sales taxes, Shane said softened revenue over time created the need for additional budget trimming.

Officials said the shortfall has forced 2.5% reductions across every department. That included the proposed “reallocation” of all firefighting staff at Fire Station 6, a rapid response unit operated by Heartland Fire & Rescue in downtown El Cajon .

Notably, restructuring would not take place until after a new fire engine is operational, but local firefighters and union leaders said the change would place immense strain on emergency services.

“This will negatively impact services to the community and not provide the cost savings that you are proposing,” said Michael Hays , union president for San Miguel Firefighters Association .

Displacing the firefighting squad would displace personnel and create burned out firefighters, while potentially affecting response times to nearby communities, he said.

Another proposal would shut down the city’s crime lab, operated by El Cajon police to provide forensic services to agencies across the county.

City Manager Graham Mitchell said those services would be turned over to the county Sheriff’s Office.

Consolidation of those services would harm criminal justice services countywide, said Shelly Webster , the crime lab’s manager.

“We identify offenders through forensic evidence. We provide justice for the victims, and we help exonerate the innocent,” Webster said. “These functions are essential to public safety and the integrity of our criminal justice system.”

Other proposed cuts include laying off 5.5 Police Department employees, delaying long-term traffic projects, slowing consultant work on the city’s potential acquisition of Parkway Plaza , delaying building maintenance, and more.

“Our goal was to minimize the impact on residents,” Mitchell said.

City leaders shared concerns about the budget outlook and made alternative suggestions to the proposed cuts to the Fire Department and crime lab.

Councilmember Michelle Mitzel proposed closing city-run recreation centers, which Mayor Bill Wells opposed.

“When we start closing down recreation centers, they’re not coming back,” Wells said, noting concern about “potential psychological impacts.”

Councilmember Steve Goble said he is against closing the crime lab and cutting Fire Department staffing. He suggested the city pull additional funding from the city’s general fund reserve, which Wells said he couldn’t support.

“Somehow, we have to structurally change our revenue because this isn’t working for us,” Goble said. “We have a revenue problem. … Hopefully something gets on the ballot to get us more revenue.”

This story has been updated with more information about the city’s reserve funds.

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