San Gabriel reviews proposed $57.7 million general fund budget; $2.7 million in new CIP funding

Mayor Ricardo Menchaca and the San Gabriel City Council heard a presentation April 21 on the city’s proposed fiscal year 2025–26 operating budget and capital improvement program from Finance Director Will Kahulakula and budget staff.

The proposal projects $57.7 million in general fund revenues and $56.8 million in expenditures and transfers, leaving a projected net change in fund balance of $933,000 and an ending reserve above the city’s 25% policy target. “It is my pleasure, to present to you tonight our, our initial proposed operating capital improvement budget for the fiscal year 2526,” Finance Director Will Kahulakula said during the presentation.

The nut of the staff presentation was that taxes and transfers are the dominant revenue sources: property taxes (including a property tax in lieu of vehicle license fee line) and the city’s Measure SG sales tax together account for the largest shares of projected general fund revenue. Staff told the council that transfers in from the retirement fund—budgeted at about $12 million to pay CalPERS pension costs—account for roughly 21% of general fund resources in the proposal.

Staff laid out the major budget drivers. Personnel costs make up the largest share of general fund expenditures—Linda (finance staff) said personnel "makes up 77% of the general fund expenditure." The budget includes a 3% vacancy savings factor and does not include any prospective salary…