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Covina council adopts balanced $58 million budget, approves $32 million CIP
Summary
The Covina City Council unanimously approved a balanced FY 2026–27 operating budget of roughly $58 million and a 31-project capital improvement program totaling $32 million, funded largely by grants and an $8.8 million transfer from Measure CC.
The Covina City Council unanimously adopted a balanced FY 2026–27 operating budget and a capital improvement program Tuesday, approving staff recommendations to transfer $8.8 million from Measure CC and to advance 31 capital projects totaling about $32 million.
Finance Director Terry Franke presented the budget and told the council the general fund revenues and expenditures are roughly balanced at about $58 million, and that the transfer from Measure CC would leave that fund with an estimated $16 million balance. "We used conservative revenue estimates and expense management," Franke said, describing the transfer as consistent with the measure’s intent to reduce structural deficits and fund capital projects.
Franke outlined key revenue and expenditure trends: property tax and sales tax remain the largest revenue sources, charges for services dipped in some areas and fines and forfeitures—largely parking-control revenue—were higher than budgeted in 2025. On the expenditure side, the city faces increased costs tied to pension (PERS) liabilities and negotiated salary adjustments; the PERS-related increase was highlighted as a notable pressure on police-related expenditures.
The proposed CIP includes citywide projects such as Glendora Avenue resurfacing, traffic-calming improvements and a frontage median bioswale installation; staff said three-quarters of the CIP funding is anticipated to come from grants. Franke also presented several staffing reclassifications and supplemental requests with a total general-fund impact of about $60,000.
Councilmember Allen moved to adopt staff’s recommendations and Councilmember King seconded. The city clerk conducted a roll-call vote; all members recorded "aye" and the motions to adopt Resolution CC 2026-631 (operating budget), SA 2026-03 (Successor Agency operating budget) and CC 2026-632 (Capital Improvement Program and CIP budget) passed.
Mayor Hector Delgado thanked the finance team for a budget that staff described as cautious and balanced. The council also discussed the city’s combined fund balance—Measure CC and the general fund—estimated in discussion at about $30 million, with staff noting part of that balance includes fixed assets and restricted funds.
Next steps: the adopted resolutions set the city’s spending plan for the fiscal year beginning July 1, 2026, and staff will proceed with the capital project procurement and grant administration described in the CIP presentation.
