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Council reallocates $342,004 in CDBG funds to repair Fire Station 56; approves mid‑year budget report and begins 2025–26 planning

2416957 · February 27, 2025
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Summary

The council approved a substantial amendment reallocating federal CDBG dollars to Fire Station 56 repairs and accepted a midyear budget report showing a modest projected surplus; staff outlined the 2025–26 budget schedule and community outreach.

During a Feb. 19 public hearing, the Montebello City Council approved a substantial amendment to the fiscal year 2020–21 annual action plan, reallocating federal Community Development Block Grant (CDBG) funds to improvements at Fire Station 56.

Planning Director Joseph Palomni presented the staff report and said the amendment would redirect $342,004.43 in federal CDBG funds previously set aside for the Montebello Senior Center and combine those dollars with a previously approved $465,084 to provide a total of $807,527 for Fire Station 56 improvements. Palomni told the council the work would include roof replacement and air-conditioning upgrades and emphasized that final implementation requires U.S. Department of Housing and Urban Development approval.

"If approved, this amendment will reallocate $342,004.43 in federal dollars of CDBG funds...to improvements to Fire Station 56," Palomni said during his presentation.

Council members asked that the senior center project continue to move forward and were assured by the city manager that both the senior center and the fire-station repairs would be funded without using general-fund dollars. The council voted to approve the amendment by roll call.

Budget update and schedule: Finance staff presented the second-quarter financial report and forecast. The city projects a modest surplus at midyear, reflecting higher-than-expected permit, sales and property‑tax receipts. Finance staff said the adopted budget for 2024–25 stands at about $76 million with an amended budget about $79 million reflecting roll‑over projects and subsequent amendments.

City staff outlined the 2025–26 budget timetable and community outreach plan, including additional in‑person budget sessions in March and a budget survey for residents. Council members encouraged residents to attend the community budget forums and submit input via the online survey.

Ending: Council adopted the CDBG amendment and accepted the midyear report; staff will pursue HUD approval for the CDBG reallocation and continue outreach on the upcoming budget cycle.