City finance staff told the Hawaiian Gardens City Council on May 22 that rising costs and largely flat casino‑derived revenue could push expenditures above revenues in coming years, and presented options including drawing on reserves, pursuing grants and adjusting staffing and contracts.

The city's finance director, Linda Hollingsworth, walked council members through multi‑year revenue and expenditure trends and a proposed 2026–27 budget. She said the casino remains the city’s largest revenue source — listed on a slide as 61.5% of projected revenues for 2026–27 — while tax revenues represent about 25.1%. “The budget really is just a guide for us,” Hollingsworth said, and added the presentation was informational: staff did not expect the council to adopt a final budget at the workshop.

Why this matters: Hawaiian Gardens relies heavily on a casino and a card‑club for general‑fund revenue. Staff cautioned that a long‑running agreement that waived some card‑club fees is expected to end around November, which will add revenue but also reflects a contractual change the city cannot treat as fully guaranteed. Finance staff said waived fees averaged about $70,000–$80,000 per month (roughly $75,000) over the past two years, and noted that from June 2017 to March 2025 the city waived about $8,000,145 in potential card‑club revenue.

Reserves and projects: staff reviewed the city’s fund structure and reserves. The presentation listed a committed capital‑improvement (CIP) amount of $4,900,000 and an emergency reserve of $20,750,000. An assigned waste‑program balance was estimated at about $715,000 and unassigned (available) reserves at about $3,300,000. Hollingsworth and staff emphasized some funds are restricted and can be spent only for specified purposes.

Planned projects and funding sources: the draft CIP includes several projects paid from a mix of general fund and special funds. The budget shows Ferguson Elementary School field improvements at $3,400,000. City staff said a member of Congress secured approximately $1,400,000 toward that project and that the Moskowitz Foundation had provided a letter committing $1,000,000; the city will continue seeking grants and other external funding and noted the foundation prefers to reimburse the city after the city pays upfront.

Operational and staffing items: departments presented proposed staffing changes and program priorities. Finance requested upgrading an accounting‑specialist position to full time and hiring a consultant to implement new financial software; staff also said an RFP for a fee and development‑impact study is underway. Community Development said it will pursue modern permitting software, a streetscape and welcome‑sign design for Norwalk Boulevard, and an inclusionary‑housing ordinance. Recreation proposed added recreation leaders, expanded senior and teen programming and another van for field activities.

Public safety and security: public‑safety staff proposed an organizational chart with several new positions and described a potential contract with Southwest Patrol, a private security company used by nearby cities. Staff said the company’s personnel would wear company uniforms, drive company vehicles and be unarmed; duties would include patrolling, responding to litter and graffiti, assisting with parking enforcement and calling the sheriff when needed. The presentation also reviewed camera systems, license‑plate readers and a recently awarded Caltrans grant of $350,000 to fund a HAWK pedestrian signal at Norwalk Boulevard and 216th Street.

Council and staff direction: council members asked for more analysis of expenditure drivers (salaries, benefits, contracts) and how to grow revenues. Staff said they would finalize the draft proposed budget and return to the council in June for formal consideration, continue to pursue grants and outside funding, move forward on the financial‑software selection and fee study RFP, and explore the proposed security contract and mobile camera options. No formal budget actions or votes were taken at the workshop.

The city manager and department heads said the budget materials are projections based on current operations and pledged to present refined numbers and implementation details for council decisions at future meetings.