City budget projects $3.8M deficit and seeks funding for special events

The Baldwin Park City Council convened on June 4, 2025, to discuss the projected budget for the upcoming fiscal year, highlighting significant financial challenges and potential strategies for addressing a projected deficit. The meeting underscored the city's ongoing efforts to manage its finances amid rising costs and the need for increased revenue sources.

The general fund is projected to see an increase of approximately $3.66 million in revenue, while expenditures are expected to rise by about $4.35 million, resulting in a projected deficit of $3.78 million. City staff emphasized their commitment to proactively seek additional revenue and identify savings to mitigate this deficit. A notable aspect of the discussion was the introduction of a new cost allocation reimbursement strategy, which aims to better reflect the overhead costs associated with supporting various special revenue funds. Despite identifying $1.3 million in overhead costs, the city anticipates only being able to recoup $70,000 due to limitations in funding from these special revenue sources.

The council also reviewed anticipated revenue from cannabis benefit fees, projected at $638,000, which will support various city services, including police and community enhancement programs. However, the discussion revealed that the city faces challenges in balancing its budget, particularly with the impact of cost-of-living adjustments (COLA) contributing to the deficit.

In addition to the budget overview, the council explored funding for 17 proposed special events for the upcoming year, which could further exacerbate the projected deficit if approved without identifying alternative funding sources. The council members were presented with two options: either approve the events and find funding or make cuts to the proposed programs.

The meeting concluded with a call for collaboration among council members to address the budgetary challenges ahead, emphasizing the importance of strategic planning to ensure the city can continue to provide essential services to its residents. As the council prepares for the next fiscal year, the discussions highlighted the need for careful financial management and innovative solutions to navigate the city's fiscal landscape.