Baldwin Park council reviews FY 2025–26 budget, projects $3.78 million general fund shortfall; directs Measure BP policy and trims events

City staff told the Baldwin Park City Council on June 4 that the proposed fiscal year 2025–26 budget projects a $3,779,000 general fund deficit before council-directed program changes and potential transfers of Measure BP revenue.

Finance staff explained two major drivers of the gap: personnel cost increases tied to cost-of-living adjustments and an updated citywide overhead cost-allocation study. The study identified about $1.3 million in administrative overhead that should be reimbursed by special-revenue and grant funds; staff said only about $70,000 is recoverable from those funds because of restrictions and fund limitations, leaving the general fund to subsidize roughly half a million dollars of overhead.

Staff also described a required accounting practice: 50% of an identified 2023–24 surplus will be deposited to a CalPERS trust account for future retiree liabilities, which is shown in the budget presentation as an expenditure item that reduces available reserves.

Council discussion focused on Measure BP — the local revenue measure enacted by voters — and how the council had previously pledged to reserve a baseline amount for community investments. Council members directed staff to treat $6,000,000 as a preservation threshold and to consider transferring Measure BP revenue earned above that threshold (including interest) to the general fund to help reduce the deficit and to fund community events. Staff estimated the amount above the preserved threshold could reduce the deficit materially (staff presented a worked example in the meeting materials and said the amount available would lower the projected shortfall significantly; final numbers will be incorporated into the next budget draft).

On special events, the council agreed to trim costs and combine programming where feasible. During the study session councilmembers approved the deletion of a proposed 70th-anniversary standalone celebration and directed staff to hold the state-of-the-city address as an online presentation in order to reduce costs. The council also asked staff to consolidate holiday programming (for example, combining breakfast with Santa into the evening tree-lighting/Posada program) and to seek additional sponsorships and other outside funding for events. Staff indicated these and other changes, together with Measure BP excess transfers and a forthcoming citywide fee study, could bring the deficit close to balance by midyear.

Councilmembers also accepted staff’s recommendation to defer nonessential personnel additions — many department staffing requests were presented as an “optional” package — and to revisit those needs at midyear after new department directors settle into their roles.

Finance staff said they will return with a revised budget for formal adoption on June 18, including the council’s direction on Measure BP treatment, event trimming and any updated revenue assumptions. Councilmembers asked staff to present a short formal policy or resolution memorializing the $6,000,000 preservation approach for Measure BP at a subsequent meeting so the policy is on record.