West Covina City Council on Jan. 6 adopted midyear budget amendments that increase general fund revenues by roughly $2.4 million and raise expenditures by about $1.6 million — changes staff said are needed to record year-end journal entries and interfund transfers.

Finance Director Karen Ogawa told the council the fourth-quarter report is preliminary and does not include year-end audit adjustments, but said mutual-aid reimbursements and higher-than-expected ambulance reimbursements helped produce the reported revenue increases. “We are projecting right now a $4,500,000 reality, we will not have a $4.45 million surplus at the end of the fiscal year,” Ogawa said, adding that transfers out (for general liability and workers’ compensation) and other year-end entries will be booked as part of the final audit.

Several council members and members of the public pressed for delay. Jim Grivich urged council to “put this off until the audit committee has had a chance to look at it and not vote on the budget adjustment,” arguing the presented report omitted important transfer details and may show inconsistent versions of last year’s numbers. Councilman Gutierrez likewise questioned approving amendments before audited year-end numbers are available and asked staff whether the reported balance depends on tapping reserves.

Ogawa said auditors will begin fieldwork next week and that the requested amendments are customary year-end adjustments: “I need this budget amendment to be adopted hopefully tonight because this is for fiscal year 2024–25,” she said, explaining the amendments authorize the city to proceed with required journal entries.

After extended discussion about transparency, timing and structural items such as the SportsPlex subsidy, the council approved the budget amendment on a 3–2 vote with Councilman Gutierrez and Mayor Pro Tem Contos dissenting.

The action will let staff post the year-end entries and proceed with payments, including previously discussed legal invoices and emergency repairs that staff said have been covered from reserves pending appropriation. Ogawa told the council an audited final report is expected approximately six to eight weeks after the audit begins, at which point the audit committee and council will receive formal results.

The council briefly discussed convening an audit committee; Assistant Manager Roxanne Lerma said an item to appoint committee members would return to a future agenda and that applications would be provided to council members in advance for review.