Norwalk adopts $304 million fiscal year budget, appoints EIFD authority; council tables Cosmont contract and approves public-safety camera trailers

The Norwalk City Council on June 17 adopted its fiscal year 2025–26 budget and related salary schedule, appointed members to the city's Enhanced Infrastructure Financing District public finance authority and approved a slate of consent items including a sewer service charge, an ordinance change for dog-license renewals and an extension of the Health on Wheels student medical services agreement. The council voted to pull one consent item'a proposed three-year contract for economic development services with Cosmont Companies'for a fuller presentation on July 1, and approved the purchase of three solar-powered Sentry Pro 3 camera trailers for public-safety deployment.

The adopted total city budget is approximately $304 million, with an operating budget of about $165 million. City staff told the council general fund ongoing revenues are about $78.7 million while operating expenditures and minor capital total about $79.3 million; staff said they plan to use limited reserves this year, including a $650,000 draw from the pension stabilization fund for CalPERS payments. Staff estimated an ending general fund balance of roughly $16.2 million if current assumptions hold. The budget document passed as Resolution No. 25-27; the council also adopted Resolution No. 25-28, amending the FY25-26 salary schedule for the general, hourly and management units.

Why it matters: the budget sets the city's spending priorities for services, public safety and capital projects. Council and staff repeatedly said public safety and street/traffic projects are top priorities; the proposed capital-improvement program includes roughly $135 million in projects carried over or planned, with 20 street/traffic projects highlighted.

Council members and staff described the budget as cautious given uncertain sales-tax trends; staff said pandemic-era and one-time revenues the city previously relied upon are no longer available and that the council will receive a revenue update later this fall. Finance staff told the council the city will continue monitoring revenues closely and may return with midyear adjustments.

The council also completed several other formal actions. By roll call the council: adopted a resolution setting sewer service charges for FY25-26 (Resolution No. 25-29), introduced an ordinance to change dog-license renewal terms (Ordinance No. 25-1757) that replaces a single July 1 expiration with 12-month renewal periods and a tiered late-fee schedule, and approved agreements to continue the Health on Wheels mobile clinic and to store the vehicle at the city yard. Health on Wheels staff reported that 58% of the patient visits were uninsured and 41% were on Medi-Cal, with 448 student visits reported August through March (about 40 visits per month). The Health on Wheels agreement term is listed as July 1, 2025, through June 30, 2026, with two one-year automatic renewal options.

Appointments to EIFD public finance authority: the council appointed the mayor and vice mayor as the city's two representatives on the Norwalk Enhanced Infrastructure Financing District public finance authority and designated the third council member by alphabetical order as the alternate. The council also appointed a public/community member, naming Kim Apodaca to serve on the authority. Staff said the county board of supervisors has signaled willingness to participate and that the financing authority is expected to convene to take organizational actions and direct preparation of the infrastructure financing plan on July 1.

Cosmont contract pulled for presentation: staff presented a consent-item summary recommending a new three-year contract with Cosmont Companies to provide economic-development services including business recruitment, market analysis and quarterly market dashboards. Alex Hamilton, presenting the item, said, "Staff does recommend approval of this action, which is a 3 year contract with Cosmont to continue with their services." Several council members asked for the company to appear in person to answer questions about services and possible duplication (for example, subscription retail-tenant databases). Councilmember Ramirez asked colleagues to pull the item for a fuller presentation; the council voted to table item No. 10 and move the remaining consent items, scheduling Cosmont to be on the July 1 agenda.

Public-safety camera trailers approved, deployment questions raised: staff recommended replacing older trailers with three upgraded, solar-powered Sentry Pro 3 camera trailers; Rita Ruiz presented the item and noted the purchase was already included in the FY24-25 budget and described deployments at special events and at locations with persistent public-safety or transient encampment activity. "Staff recommends the purchase of the 3 Sentry Pro surveillance trailers," Ruiz said. Several council members asked for a deployment schedule, written monitoring procedures and clarity about who reviews footage and whether the units will be monitored 24/7; councilmembers said they wanted assurances the equipment would be actively used rather than sit idle. Councilmembers also described prior successful uses at public events and for targeted monitoring in areas of concern.

Classification and compensation study: CPS HR Consulting presented a finalized classification and compensation study that recommends replacing Norwalk's current five-step pay structure with a nine-step salary schedule designed to address compression and create more room for wage progression. Consultants said 36% of the city's benchmark classifications fell below market midpoints and that, under the current five-step structure, 57% of employees are "topped out." The consultant described the implementation as a one-time cost to align the pay schedule (the consulting presentation estimated a one-time implementation cost of about $1.05 million), and stressed that exact fiscal impact will be finalized during labor negotiations and included in the FY25-26 budget process. Consultants said every employee would receive a raise under the proposed reclassification but that increases would vary depending on each employee's current placement and the new grade/step assignment.

What the council directed next: staff will bring Cosmont to the July 1 meeting for a direct presentation and will return staffing and budget details on the classification-and-compensation implementation costs during labor negotiations. Staff was also asked to provide a deployment schedule and monitoring plan for the new camera trailers. The new EIFD public finance authority is scheduled to convene July 1 to adopt bylaws and guide preparation of an infrastructure-financing plan.

Votes at a glance: the council approved the FY25-26 budget and salary schedule (Resolution Nos. 25-27 and 25-28) by roll call; approved the sewer charge resolution (25-29); introduced the dog-license renewal ordinance (25-1757) by roll call; approved Health on Wheels agreements; appointed members to the Norwalk EIFD public finance authority; approved purchase of three camera trailers; and voted to table the Cosmont contract (item 10) for presentation on July 1. Most roll-call votes recorded unanimous 'Aye' with four members present.