Montebello gets first look at FY 2026–27 budget: general fund near $92.7M, constrained discretionary spending

Finance staff presented a first‑look overview of Montebello’s proposed FY 2026–27 budget on May 27, emphasizing constrained discretionary resources amid growth in salary and fixed costs.

Key figures and context: Staff reported proposed spending of about $237.9 million across all funds and approximately $92.7 million in the general fund. Projected revenue increases would leave an estimated near‑term surplus on the order of several hundred thousand dollars, but staff cautioned that most general fund expenditures are fixed—roughly 64% of the general fund is salary and benefits—leaving limited capacity for new programs.

Revenue drivers: Sales tax and property tax are Montebello’s largest general fund revenue sources (about 53% combined). Staff noted city sales‑tax gains tied to recent retail openings and expected new retail in the pipeline; license and permit revenues were also projected higher after recent master‑fee and business‑license updates.

Expenditure pressures: Finance staff described year‑over‑year increases driven by salary and benefit adjustments, PERS and part‑time wage increases, and expanded service levels. Public safety and parks remain major expenditure categories. Parks and recreation gains primarily reflect moving park maintenance from Public Works into Parks & Recreation and funding it at a higher level to protect recent facility investments.

Next steps: This was a budget preview; staff said more detailed departmental budget documents will be provided with the draft and that council will return in upcoming meetings for formal adoption.