Gardena adopts amended FY 2025–26 budget, approves capital plan and related fiscal measures

The Gardena City Council on June 24 unanimously adopted an amended fiscal year 2025–26 budget, approved a multi-year capital improvement program totaling roughly $70 million and voted on several related fiscal measures, including the city’s appropriations limit and updated investment policy.

The council approved Resolution No. 6703 adopting the amended FY 2025–26 budget, which staff described as the second year of the city’s biennial budget. City staff reported the proposed amended budget is balanced and projects a general fund surplus of $73,046 for 2025–26 while increasing the city’s general fund reserve to roughly $34 million (about 39 percent), above the council’s 25 percent reserve policy.

Why it matters: The adopted budget funds public safety and infrastructure projects the city says are priorities for long-term financial stability. City staff highlighted $70 million in capital improvement projects for the coming year, including roughly $41 million for streets, sewer and stormwater work and nearly $30 million for parks and facilities projects — the largest single park item cited was the Gardena Community Aquatics and Senior Center at about $10.3 million.

Key budget details cited by staff: - Total amended general revenues and expenditures were reported at approximately $87 million each with a small surplus of $73,046. - Capital Improvement Program (CIP) budget of about $70 million for FY 2025–26: $41 million for streets/sewer/stormwater and $30 million for parks/facilities (projects named in presentation included Redondo Beach Boulevard improvements and Mas Fukuy Park rehabilitation). - General fund reserve projected at about $34 million (39 percent of the general fund), above the 25 percent minimum policy.

The council also took these fiscal votes on the same agenda: - Resolution No. 6704: established the city’s annual appropriations limit for FY 2025–26 at $153,171,077 (unanimous roll-call approval). - Resolution No. 6705: acknowledged receipt and filing of the city’s annual statement of investment policy for FY 2025–26 (unanimous approval). Staff emphasized the policy is aligned with industry guidance and the city’s objectives of safety, liquidity and return. - Insurance procurement: The council authorized the city manager to purchase insurance covering property, cyber, boiler & machinery, pollution, crime and other lines for a total of $2,978,400 across the prorated 2024–25 and full 2025–26 policy years. Staff noted higher premiums across several lines and described specific provisions (excess liability purchase, cyber coverage at $4 million, and inclusion of G Trans vehicles in certain programs).

Staff presented the makeup of major revenue streams and noted projected declines in sales tax revenue compared with the prior estimate; sales tax remains the city’s largest single general-revenue source. Staff also told council that a potential long-term risk is reliance on card club revenue — if state or judicial changes remove certain gaming activity, the city could lose a substantial amount of general fund revenue, which staff said the city is planning to mitigate through measures such as pursuing recapture of a quarter-percent sales tax currently allocated to the county.

Votes at a glance: - Adopt amended FY 2025–26 budget (Resolution No. 6703): motion by Mayor Pro Tem Roni Tanaka; second by Mayor Tasha Serta. Roll call: Tanaka yes, Serta yes, Henderson yes, Francis yes, Love yes — outcome: approved. - Establish FY 2025–26 appropriations limit (Resolution No. 6704): motion by Councilmember Mark Henderson; second by Mayor Pro Tem Roni Tanaka. Roll call: unanimous — outcome: approved. - Approve investment policy (Resolution No. 6705): motion by Mayor Pro Tem Roni Tanaka; second by Councilmember Paulette Francis. Roll call: unanimous — outcome: approved. - Authorize purchase of insurance coverage (agenda item 12d): motion by Councilmember Mark Henderson; second by Councilmember Paulette Francis. Roll call: unanimous — outcome: approved.

What’s next: Staff will publish the appropriate budget documents and implement projects in the CIP schedule. Several projects include multi-phase timelines; staff said work will continue through design and construction phases over coming fiscal years. Councilmembers asked staff to continue public outreach and to pursue long-term revenue measures to address the city’s exposure to potential loss of card-club revenues.