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Lawndale council adopts $22 million general-fund budget for 2026–27, approves $879,000 gap
Summary
The Lawndale City Council unanimously adopted the FY 2026–27 budget, approving $22,000,002.74 in general-fund revenue projections and noting an estimated shortfall of about $879,000; councilmembers cited rising personnel costs and recommended monitoring interest income and MOUs.
The Lawndale City Council unanimously adopted the city's fiscal year 2026–27 budget on June 1, approving staff's projections that general-fund revenues will total $22,000,002.74 while the city faces an estimated deficit of roughly $879,000.
Staff presented the budget package, saying the proposed ending fund balance is about $36,000,005.88. The administration highlighted a roughly $1.1 million increase in total general-fund revenue compared with the prior year and forecast roughly $2,000,000 in interest income tied to current high interest rates.
The presentation said about 83% of general-fund revenue comes from taxes and identified the largest tax categories: Measure L sales tax receipts, motor-vehicle-in-lieu funds, transient occupancy tax, property tax and utility-user taxes. Personnel costs rose in the proposal, driven by recently negotiated MOUs for AFSCME and CMT employees and higher PERS retirement contribution requirements.
Council members asked staff several clarifying questions before the vote. Mayor Pro Tem Cuevas asked whether the city's transient occupancy (hotel) tax is set in ordinance or requires voter approval; staff replied the city charges 9% and that increasing that rate would require placement before voters. Councilmembers also questioned a personnel reallocation noted in the packet; staff explained part of the city manager's salary had been charged to community development in the proposed allocations.
After discussion, Councilmember Cuevas moved to adopt the resolution; it was seconded and passed unanimously with Councilmember Kearney absent. The council did not adopt any amendments to the budget during the meeting.
The council packet and staff presentation flagged potential near-term risks including litigation exposure related to Metro, upcoming MOU negotiations and sensitivity to interest-rate changes; staff said small savings and higher interest receipts should largely mitigate the current deficit but recommended continued monitoring.
The budget adoption was the most significant fiscal action at the meeting; the council also approved a series of routine finance resolutions and capital contracts (see other articles).
