West Covina council rejects 5-year budget forecast, orders revisions and community town halls

The West Covina City Council voted May 20 to send the city's five-year financial forecast back to staff for revision and for additional community engagement.

Councilmember Gutierrez moved and Mayor Tony Wu seconded a motion to reject the long-range forecast and require additional analysis. The motion passed unanimously on the roll call vote recorded on the transcript. Council direction included: (1) updated analysis of recurring revenues and development impacts, (2) a review of solar/energy-loan savings and refinancing options, (3) clearer explanations for department budget increases, and (4) at least three community town halls to solicit resident input before final budget adoption.

Finance staff told the council the forecast flagged growing expenditures such as workers' compensation and general liability as drivers of pressure on the general fund. Acting Finance Director Maria Luisa said she used the same assumptions used in prior years and noted uncertainty around costs and revenue.

Why this matters: The council's motion requires staff to reconcile the city's revenue outlook with ongoing development activity and the city's forecast assumptions. Council members cited recent and pending private development, property and sales tax growth, and large one-time land-sale prospects as reasons to revisit forecasts before finalizing budget policy.

What the council asked staff to do: produce a revised forecast with clearer assumptions and supporting analysis, present options for reducing projected liabilities (including tree-trimming and risk management steps), and host community town halls (three minimum) to collect resident priorities ahead of budget adoption. The council directed staff to return with the revised analyses and a schedule for public meetings; the proposed budget was also noted for presentation at the next meeting on June 3.