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Monterey Park council approves $2.7 million in midyear budget augmentations; staff told to shore up reserves
Summary
Council adopted staff'recommended midyear adjustments including $2,698,232 from the general fund and set direction to bolster catastrophic and working-capital reserves, while staff will use consultant and surplus funds to fund grant matches where needed.
Monterey Park — The City Council unanimously approved midyear budget augmentations and gave staff additional direction to prioritize bolstering the city’s catastrophic and working-capital reserves.
Laura Bourgeon, finance manager, presented the FY25–26 midyear financial report, noting general fund revenue collections at roughly 34% midyear due to timing of receipts and sector-specific timing for sales tax, franchise fees and property tax. She told the council that property tax was up about 5% year-over-year while sales tax has declined about 7%.
Staff recommended general fund midyear augmentations totaling $2,698,232, including $1,000,000 for Fire Station 63 renovation, $1,000,000 for Barnes Park Pool design, $250,000 for street-tree plantings, $150,000 for fire training services and $298,232 for various operating needs. The city also requested enterprise and special-fund adjustments (examples: $167,000 from water funds for software upgrades, $7,272,000 from technology and data processing funds for hardware replacement, and other smaller allocations and grant-funded items) as detailed in the staff report.
Council members queried the timing of revenues and the effect of reduced sales tax on city finances. Bourgeon said the city expected timing-driven variance and that some revenue sources (property tax, TOT) are doing better while sales tax lags. Councilmembers urged increasing reserves where possible: one member said the city should aim for a 20% reserve target over time rather than just the 15% GFOA minimum.
Council also reviewed remaining federal COVID Community Development Block Grant funds (staff estimated about $200,000 available through Sept. 2026) and directed staff to consider using surpluses to add to reserves and to set aside grant-match funds (staff said about $3 million in assigned CIP could be used to match a potential $6 million grant).
A motion to adopt the staff recommendations passed unanimously. Council included additional direction to staff to explore increasing the catastrophic and working-capital reserves beyond the initial $150,000 allocation if surpluses permit and to ensure funding is assigned for grant matching and the Barnes Park pool project design.
What happens next: staff will close the fiscal year, apply approved augmentations, and return with updated numbers and any recommended adjustments should surpluses allow reallocation to reserves.
