Cudahy staff flags roughly $890,000 budget gap; council weighs one‑time funds and sheriff staffing cuts

City staff told the Cudahy City Council Monday that the proposed FY26–27 general fund budget faces a structural shortfall — roughly $890,000 after prior reductions — and presented options that could bridge that gap in the short term while the city pursues longer‑term structural changes.

The finance presenter said staff reduced about $600,000 based on prior council direction but still face an ongoing shortfall of approximately $890,000. Staff outlined two broad approaches: use one‑time revenues or fund exchanges (for example, measure or Prop funds and Section 115 monies) as a bridge, or pursue structural expenditure reductions, such as vacancy management and service‑level changes.

Council members focused on the sheriff contract and staffing as one avenue for recurring savings. Staff identified a “special assignment deputy” line that costs about $275,000 per year and described the sheriff’s minimum recommended staffing model as 2 deputies in early morning, 2 in the AM and 2 in the PM with some shifts using a 3‑deputy overlap. Councilors asked for data on what residents receive for the current deployment and discussed two staff options to return: (A) remove the special assignment deputy and use a mix of measure funds and one‑time exchanges to close the remaining gap; (B) remove the special assignment deputy and realign patrol to the sheriff’s minimum staffing (2/2/2) as an ongoing expenditure reduction.

Finance staff cautioned that one‑time fund swaps can balance the budget for a year but do not address structural imbalance and that repeated use will deplete reserves. The council directed staff to return with the two packaging options and supporting analyses at a future meeting.

Ending note: staff will prepare option packages reflecting council direction and present them at a subsequent council meeting for formal action.