Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Midyear topic
No spam. Unsubscribe anytime.
Midyear budget: Bell Gardens forecasts $1.98M general-fund reduction, flags card-room risk
Summary
Finance staff presented a midyear review showing revenues up $4.1M and expenditures up $6.1M for FY 2025–26, producing a projected $1.98M net reduction in general-fund balance; staff said card-room receipts are projected at about $17.13M and warned Attorney General gaming regulations could reduce that further, prompting contingency planning and consideration of revenue options.
Bell Gardens finance staff told the City Council Monday that the city is projecting a net reduction of about $1.98 million to the general-fund balance for fiscal year 2025–26, driven by a projected drop in card‑room revenue and higher-than-expected capital and departmental expenditures.
Director of Finance Manuel Curo said the midyear forecast reflects an estimated card‑room revenue of approximately $17.13 million for the year, about $2 million below the adopted budget figure. Curo said overall general‑fund revenues are projected to finish about $4.1 million higher than adopted while expenditures are running roughly $6.1 million above the adopted level — with the increased spending largely tied to final aquatic‑center costs and other capital items carried forward from the prior year.
Curo and City Manager Joe Kelly warned the council of regulatory risk: Attorney General changes to gaming rules were described as an unresolved factor that could reduce card‑room receipts materially. Dr. Deon Sanchez, the city’s JPA representative, said card rooms and cities are organizing legal challenges and outreach to legislators; staff estimated a potential 20–40% decline in card‑room revenue in a worst‑case scenario, but said precise impacts will depend on litigation and possible legislative action. Staff outlined a timeline in which draft regulations are due by May 31 and could take effect June 1 in worst‑case timing, with revenue impacts on the city lagged by the county payment schedule.
Staff reviewed options and constraints: the city’s projected June 30, 2026 fund balance is roughly $17.9 million, but about $7.6 million of that is recorded as non‑spendable (an interfund receivable related to the water fund). To shore up operations, staff cited several potential tools discussed with council: the proposed 0.25% local transactions and use tax placed on the June ballot, increased or updated development and plan-check fees, collection of contractual cannabis payments (staff said the city received roughly $600,000–$800,000 this fiscal year and expects at least another ~$600,000 tied to development agreements), and longer-term options such as issuing water‑system bonds to repay general‑fund interfund balances.
City staff said the budget process for FY 2026–27 will begin in March, with a draft budget presentation planned for the May 11 council meeting and a community budget workshop on May 13.
Council members requested follow-ups: an ad-hoc review of aquatic‑center programming, a report on the status of owed cannabis revenues, and continued contingency planning in case card‑room revenue declines materially.
