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Monrovia adopts two‑year budget with one‑time PFAS settlement set aside
Summary
After two study sessions the council approved a two‑year budget that includes PFAS settlement proceeds set aside, continued CIP spending and strategies to manage rising pension costs.
The Monrovia City Council on June 17 adopted a two‑year operating and capital budget for fiscal years 2025–26 and 2026–27 that staff described as conservative and flexible.
Finance staff said the fiscal plan includes one‑time PFAS settlement proceeds—$3,670,000 in year 1 and $140,000 in year 2—which the city will set aside in a separate general fund account. The budget incorporates strategies to manage rising CalPERS unfunded accrued liability (UAL) costs, personnel and maintenance and operations inflation, and a decline in sales tax revenues compared with the city’s sales tax peak in 2022–23.
Key points staff highlighted include vacancy savings, contract reviews, a planned lump‑sum payment for CalPERS UAL to realize interest savings, continued deposits to a Section 115 trust, and continued pursuit of outside funding to support capital projects. The council heard that property tax and transient occupancy (hotel) taxes were showing relative strength while overall revenues were projected conservatively. Staff noted the general fund showed a one‑time surplus in year 1 (driven by the PFAS proceeds) and an operating deficit in year 2 that staff will work to reduce through ongoing savings efforts.
The capital improvement program included 38 projects across eight categories, with approximately $23 million appropriated for FY 2025–26 and nearly $4 million for FY 2026–27; staff will return to council for formal approval before individual project awards. Measure K revenues and a spending plan approved in December 2024 remain active in the CIP program.
Councilmembers praised staff for outreach and frequent reporting and asked that staff continue to look for opportunities to increase capital funding in the second year. The council passed the budget and related fee schedule and authorized position listings by unanimous roll call.
The city will post final budget documents in the city’s online agenda packet and continue quarterly budget updates to council.
