West Covina staff present FY 2025–26 proposed budget showing $144.2M revenues, $156.1M expenditures; pension and health‑department costs flagged

City of West Covina staff presented the proposed fiscal 2025–26 budget at a budget workshop, reporting $144.2 million in projected revenues and $156.1 million in projected expenditures and warning that rising pension and workers’ compensation liabilities are increasing costs.

The Finance Director summarized the process and schedule, saying the proposed budget “was already presented to Council June 3” and that adoption was scheduled for June 17; staff said the long‑range financial forecast will be updated before the adopted budget is submitted for Government Finance Officers Association (GFOA) consideration. The proposed package preserves current service levels and does not add new full‑time positions in the general fund, staff said.

Why it matters: staff and council members said the city faces lingering structural pressure because expenditures are rising faster than revenues, and because large, multi‑year liabilities tied to pensions and liability claims are increasing the city’s cost base. At the same time, staff said the city has not identified ongoing general‑fund revenue to pay for a proposed city health department and that any future costs would be presented to council with proposed funding sources.

Key figures and drivers

- Staff reported total citywide revenues of $144.2 million and expenditures of $156.1 million for the proposed 2025–26 budget. Staff characterized the higher citywide expenditures as reflecting activity across many funds, not only the general fund.

- Staff said the general fund is the city’s largest fund; figures discussed in the workshop put the general fund…