The Cudahy City Council on June 17 adopted the city’s fiscal year 2025–26 operating and capital budget after staff presented adjustments that removed a previously budgeted $650,240 transfer and increased some revenues.

City finance staff said the adjustments produced an updated revenue total of $43,040,944 and that the general fund’s projected reserve — the fund balance — would remain above the city policy target, moving from an estimated 28% this year to about 34% under the current estimates. "If our estimates are good, they will be at 34%," finance staff said during the presentation. The council voted to adopt the budget by recorded roll call.

The budget matter was the meeting’s most discussed item because council members raised several follow-up questions about how one-time grants and other restricted funds are being used to pay staff. Council member Gomez said she was "concerned" that many positions are funded substantially by grants that expire June 30 and pressed staff for clarity on long-term sustainability. Finance staff explained allocations are based on estimated workloads tied to capital and grant projects and said most current projects remain on track to be completed before grant expiration dates.

City staff walked the council through specific adjustments. They removed an unexplained transfer out of $650,240 originally budgeted in the facilities department after not finding a corresponding transfer into another fund; staff said the hold likely related to an earlier Siemens project allocation that was never invoiced. The finance presentation also noted a $100,000 upward adjustment to building-permit revenue based largely on an anticipated senior-housing project and corrected a double-counting in Measure R reserves.

Council members sought detail on fund balance calculations and cost-allocation methods. Council member Lomeli questioned the share of staff time billed to capital grants and Measure M, noting the finance director and other senior staff carry significant percentages of their time on capital work. Finance staff and the city manager said allocations reflect workload for invoicing and grant reporting and that capital work is moving from design into construction, which increases reimbursements and reporting requirements.

The budget package includes a $1.5 million congressional-directed community project the council previously pledged to apply toward a senior-housing development. Staff said the city will record the money as revenue when received and then pass it through to the project’s developer as previously authorized by council pledge.

Council members also approved companion items tied to the budget: the personnel rules and salary plan, holiday schedule and the city’s appropriations limit under Proposition 4 (the Gann limit). Several council members asked staff to provide monthly invoices and updates for consultant and interim staffing costs while the city recruits a permanent finance director.

The council adopted the budget in a recorded vote with Council members Fuentes, Gomez, Lomeli, Vice Mayor Doctor Gonzales and Mayor Alcantar Loza voting in favor.

Looking ahead, staff said final audited results after June 30 will determine any transfers to a revenue-stabilization fund; the council may amend the budget during the fiscal year as grant awards and project timelines change.