Council approves $1.962M budget appropriation for property purchase and demolition; midyear report shows revenue/expenditure timing issues

The Cudahy City Council unanimously approved a budget amendment Monday to move $1,962,000 from the Revenue Stabilization Fund to the General Fund to cover the planned purchase of real property and related demolition costs, including work tied to a fire at 8420 Atlantic Avenue.

Senior Accountant presented the request, describing demolition costs and a "put" agreement that required the city to make the purchase of 4730 Santa Ana Avenue. The council voted to appropriate the funds so the expenses will be properly recorded in the fiscal year 2025–26 budget and reflected in the city's audit records.

Later in the meeting the senior accountant delivered a midyear budget vs. actual report that focused on the General Fund. Revenues were presented at approximately 49.4% of budget and expenditures at 35.7% of budget as of December 31, with notable timing differences across funds (insurance and CalPERS payments often posted at the beginning of the fiscal year while some grant reimbursements come later). Staff noted large, up‑front payments such as CalPERS unfunded liability can create midyear variances.

The city manager urged transparent, recurring midyear reporting and warned that the city has a multi‑year pattern in which expenditures have at times exceeded revenues, chipping away at fund balance. Council directed staff to continue budget work and to bring additional details at a special budget meeting.

Next steps: staff will implement the appropriation and provide further budget analysis and recommendations at the scheduled special budget discussions.