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Lawndale projects a $716,000 general fund shortfall; council approves $362,000 in midyear amendments
Summary
Finance reported a projected midyear general fund deficit of about $716,000 driven by several expenditure changes; council approved roughly $362,000 in amendments to cover payouts, utility adjustments, and program transfers and tasked staff with monitoring revenues.
City finance staff presented a midyear budget update showing revenues and expenditures roughly on track year‑to‑date but forecasting a general fund shortfall of about $716,000 for fiscal 2025–26.
Key figures and drivers: Staff reported general fund revenues at about 42% of budget and expenditures at about 41% of budget through Dec. 31, 2025. A projected deficit of approximately $716,000 reflects higher‑than‑expected expenditures, including an estimated city manager payout and higher utility and water charges tied to meter adjustments. Public Works requested an increase of about $168,960 to reflect higher electric, water and gas costs and corrected meter billing; the city manager department requested roughly $104,000 for payout costs, and community development requested increases tied to building safety services and workload. Staff also proposed budget movements for ARPA and CDBG items to align the accounts.
Council action: Council moved to approve the midyear budget amendments (documented attachments list individual adjustments). The motion passed unanimously.
Context and next steps: Finance noted some revenue categories (sales tax, development fees) were performing better than the prior year and could offset part of the projected shortfall; staff will continue to monitor collections and report back. The council approved the listed amendments and instructed staff to return with updates as revenues and expenditures evolve.
Why it matters: Midyear adjustments reshape spending priorities for the rest of the fiscal year and reflect operational realities—most notably personnel payouts, corrected utility billing, and program reimbursements—that the council must fund to maintain services.
