South Gate staff warn of $8–9.4M budget shortfall; utility users tax proposed as primary fix

South Gate city staff told the Planning Commission that the general fund faces a projected structural shortfall of roughly $8 million to $9.4 million for the coming fiscal year on an approximately $80 million general-fund budget.

The shortfall and next steps were presented by city staff in a detailed slide presentation and discussion. "The shortfall in that deficit is being projected between 8 and 9,400,000.0 for the coming fiscal year," a staff presenter said during the presentation. Staff and consultants emphasized that prior one-time solutions and reserve use are exhausted and that without new, ongoing revenue the city would have to make service reductions that would affect police, parks, recreation and other community services.

Why it matters: the general fund pays core local services, and staff said existing revenue streams are constrained by state law and allocation formulas. The presenters noted South Gate keeps about 2% of retail sales tax on a typical taxable purchase, while its slice of the property-tax 1% levy is roughly 6% — both comparatively low among neighboring cities. "On a…