West Covina council hears proposed FY 2025–26 budget; members press for priorities and contract scrutiny

Acting Finance Director Maria Luisa Olaya presented the city’s proposed fiscal year 2025–26 budget to the West Covina City Council, prompting a lengthy discussion about reserves, pensions, capital projects and procurement practices.

Olaya said combined revenues across all funds are projected at more than $144.2 million, with total expenditures at about $156.1 million. She described the general fund projection — revenue of roughly $96.3 million and general fund expenditures of about $82.0 million — and reported the proposed budget shows a slight $700 surplus for the general fund under current assumptions. The budget incorporates an 18% reserve policy the council adopted earlier in the year, Olaya said.

The finance presentation included several program- and capital-related notes: a proposed exchange of $3.5 million in Prop A revenue to free $2.6 million in general-fund capacity; planned transfers to support the Sportsplex (about $13.8 million in transfers are noted in the staff materials); and $12 million in proposed new capital projects for 2025–26 along with previously budgeted CIP funding.

Councilmembers and members of the public raised a series of fiscal concerns. Audit committee member Jim Grivich urged the council to “listen to the residents” and to require competitive procurement for city contracts, saying the city has “not attempt[ed] to get best value out of its contracts” in prior audits. A local property owner asked the city to review business-license penalties that he said had grown substantially in his case; the acting city manager said staff would follow up.

Several councilmembers focused discussion on capital priorities. Councilman Kento asked staff to consider using restricted surplus to accelerate additional residential street repairs; staff noted the city holds restricted funds that could be applied to streets but some CIP accounts are restricted and must be used consistent with their funding source.

Council members also debated specific proposed CIP items. The city has previously budgeted $500,000 for elevator work at City Hall; staff said a full scope had been estimated at up to $1 million, but that scope and the procurement approach would be refined. Councilmembers questioned whether some city capital funding should shift to high-priority public-safety and wildfire-hazard items such as hillside brush clearance.

During council reports and requests at the meeting’s end, Councilman Kento moved to agendize establishment of a Section 115 pension trust, to agendize termination of the BrightView landscaping contract and to empower the city manager to seek a replacement contractor, and to have staff research options for a public-safety tax. Council members indicated support for placing those items on a future agenda; staff said termination would require following procurement procedures (including an RFP for replacement services) and that placing a tax measure on the ballot would require either council action or a citizen petition and would incur election costs.

Separately, the council approved the consent calendar items 1–3 by roll-call vote (motion by Councilwoman Diaz, second by Mayor Pro Tem Lopez Viotto; recorded vote 4–0). The budget remains proposed and will return for adoption at a future meeting; staff said the adoption is scheduled to be considered in mid-June to allow a July 1 start of the fiscal year.

Sources: presentation on the proposed fiscal year 2025–26 budget by Acting Finance Director Maria Luisa Olaya; public comment from Jim Grivich and property owner Michael; councilmember requests recorded on the public record.