San Gabriel council reviews proposed FY2026–27 budget, staff projects $635,000 general‑fund shortfall

San Gabriel Mayor Chan on Wednesday presided over a study session in which Finance Director Kahula presented the city manager’s proposed FY 2026–27 operating budget and a $9.4 million capital improvement program.

Kahula told the council the city’s all‑funds budget totals $92.6 million and that the general fund — the city’s main operating fund — accounts for roughly 65% of that total. For 2026–27 staff project general fund revenues and transfers in of $59.3 million and expenditures and transfers out of $59.9 million, producing a projected net decrease in fund balance of $635,000. "We will need to use that portion of general fund reserves to maintain a structural balance budget," Kahula said.

The presentation said taxes (including property taxes and the property tax in lieu of vehicle license fee), license and permit revenues and fees account for the bulk of general fund resources. Kahula cited a 7% tax increase overall and highlighted building‑permit activity as the largest driver of a $1.1–$1.2 million increase in licenses and permits. The finance slides show operating expenditures of $87.1 million and capital projects of $5.5 million across all funds.

On the expenditure side, Kahula told the council…