San Gabriel council adopts budget, fees and multiple items; sets course to ask voters for a sales‑tax to pay for public‑safety and infrastructure

The San Gabriel City Council on June 2 unanimously adopted the city’s FY2026‑27 operating budget and capital improvement program, approved changes to the citywide fee schedule and cleared a set of other routine and project items — while giving staff direction to put a local transactions‑and‑use tax before voters in November.

The budget the council approved projects citywide spending of about $92.6 million and a general‑fund shortfall of roughly $635,000 in 2026‑27 that would be covered from reserves. Will, the city’s finance director, told the council total general‑fund revenues are estimated at about $59.2 million and expenditures at about $59.9 million, and that adopted staffing levels and planned capital spending include a $3.6 million addition to the annual streets program.

The council also adopted Resolution 26‑15 updating the master fee schedule for FY2026‑27. Assistant Finance Director Linda Tang presented the proposal, saying most fees are being increased by a January 2026 consumer price index (CPI) of 3% and that staff’s package would yield roughly $250,000 in annual revenue. The changes include: adding a $50 annual bingo permit (existing in code but newly placed on the fee schedule), a one‑time facility certificate of operation fee for massage establishments (about $143), new after‑school and middle‑school program fees ($30 per week for elementary after‑school with sibling discounts; $75 per middle‑school season), and higher fines for certain parking violations. Councilmember Menaka successfully moved the fee schedule with an amendment directing staff to return with detailed assistance/waiver rules for low‑income families, using Los Angeles County guidelines as a framework.

Other actions at the meeting included: adoption of Resolution 26‑23 vacating an unused sidewalk area along the frontage of 261 South Mission Drive while reserving a narrow parkway drain utility easement; approval of a remote‑meeting disruption policy required under SB‑707; authorization of a professional services agreement with MPD Events to operate the 2026 Dumpling & Beer Festival; and adoption of Resolution 26‑9 allowing the temporary appointment of CalPERS retiree Ruben Soraniano as interim police captain while a permanent recruitment proceeds. All votes on those items were 5‑0.

On the Dumpling & Beer Festival, Economic Development Manager Karen Co said the 2025 anniversary event drew 5,000–7,000 people and that staff issued an RFP to identify a turnkey operator; the council approved MPD Events after staff review and interviews.

During an extended policy discussion, city leaders pressed the need for new sources of capital funding for long‑deferred projects: a replacement or major remodel of the police station (staff estimates a range in the tens of millions), fire station and EMS capacity increases, Smith Park pool replacement and expanded streets investment. City Manager Mark Lazaretto and Finance Director Will told the council that grant funding is limited, that a parcel‑based special tax would require a two‑thirds vote and that a local transactions‑and‑use (sales‑type) tax can be approved by a simple majority.

After questions about rates, bonding and how revenues would be protected and spent, a majority of councilmembers directed staff to return June 16 with formal ballot language and ordinance options needed to place a local transactions‑and‑use tax on the November 2026 ballot (staff recommended language scalable from 0.25% up to 1.00% depending on state cap changes and voter direction). The council asked staff also to include bonding scenarios and an accountability approach that would keep proceeds transparent and tracked separately for capital investments.

Next procedural steps: staff will prepare the ballot ordinance and supporting materials for council consideration on June 16; if council adopts a resolution to consolidate the election the county will place the measure on the November ballot for voter consideration.

Actions at a glance (all passed 5‑0): the consent calendar; Resolution 26‑15 updating the master fee schedule; adoption of the FY2026‑27 operating and CIP budget; Resolution 26‑23 (261 South Mission Drive vacation); the remote‑meeting disruption policy; award of the Dumpling & Beer Festival operator contract to MPD Events; and Resolution 26‑9 appointing an interim police captain.

A complete list of actions, key vote counts and the staff report details are available on the city website and will be included in materials prepared for the June 16 meeting.