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Council adopts FY2026–27 budget with $2.44M general fund gap; staff outlines drivers and funding plan
Summary
The council adopted the FY2026–27 budget, approving resolutions 2026-37 and 2026-38. The proposed general fund shows revenues of $62.8 million and expenditures of $65.2 million, an estimated $2.44 million deficit; staff outlined drivers including CalPERS UAL, personnel costs and capital projects and noted options to close the gap.
Monrovia City Council adopted the fiscal year 2026–27 budget on June 16, approving resolutions 2026-37 and 2026-38 that include the schedule of fees and the authorized position listing.
Staff presented a high-level review of the proposed budget: combined citywide revenues are approximately $213 million and expenditures roughly $153 million across more than 50 funds. The general fund projection lists $62.8 million in revenues and $65.2 million in expenditures for an estimated deficit of about $2.44 million; staff noted an improvement from the earlier projection and described one-time receipts that partially mask the underlying gap.
Key budget drivers discussed were increased CalPERS unfunded actuarial liability (UAL) payments (projected to rise toward $3.9 million in FY26–27), rising personnel costs that represent roughly 65% of the general fund, and inflation‑driven maintenance and operations expenses. Staff described mitigation measures including fee adjustments tied to CPI, vacancy savings, contract reviews, and paying the UAL lump-sum to realize interest savings.
Council adopted the budget by roll-call vote. Staff will return quarterly with updates and manage capital projects and Measure K expenditures; staff also noted a placeholder bond financing scenario discussed in prior CIP sessions.
Why it matters: The adopted budget frames city services and capital investments for the coming fiscal year and identifies a structural gap staff must address through ongoing fiscal measures.
What comes next: Staff will implement approved spending and fee schedules, pursue grant and financing options noted in the plan, and return to council with budget adjustments as conditions evolve.
