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City of Commerce adopts conservative 2026–28 biennial budget and establishes disaster relief fund
Summary
The City of Commerce approved a conservative two‑year budget that assumes a $13 million annual midpoint loss from card‑room revenue changes; the council approved an amendment to create a community disaster relief and recovery fund with an initial $100,000 transfer from the project management fund.
The City of Commerce on the council dais approved a conservative 2026–28 biennial budget after a presentation from Finance Director Pablo Castillo and an amendment to create a community disaster relief and recovery fund.
Castillo told the council staff used the midpoint of a projected range when modeling the potential impact of new regulations affecting card‑room operations: "we decided to use the midpoint of that range at around $13,000,000 annually in revenue reductions." For budgeting, staff assumed roughly $6.5 million in lost revenue in year one and $13 million in year two, and crafted spending reductions to preserve core services while maintaining flexibility until revenue clarity improves.
The budget package included departmental expenditure reductions, elimination of vacant positions and conservative revenue assumptions. Castillo said staff implemented $600,000 in reductions in fiscal year 2026–27, about $1,400,000 in 2027–28 and roughly $400,000 annually in labor savings from eliminating vacant posts. The proposed capital improvement program totals about $22.3 million in year one, with $13 million expected from Measure AA; major second‑year projects include a transit maintenance facility and electric buses, most of which staff said would be grant‑funded.
Councilmembers discussed community needs tied to a recent industrial fire that produced heavy smoke in nearby neighborhoods. The mayor proposed creating a standing community disaster relief and recovery fund and asked that $100,000 be transferred from the project management fund this fiscal year to buy air purifiers and other necessities; several councilmembers voiced support. City staff told the council they could process a budget amendment and move forward with an accounting mechanism to allow faster purchases while formal funding rules are developed.
The motion to approve the budget as amended was moved and seconded on the record and passed by roll call with three recorded votes in favor. Staff told the council it will return in January with updated revenue projections and possible restoration of reductions if revenues perform better than assumed.
What happens next: staff will implement approved reductions, manage temporary transfers for emergency relief as directed, and report back to the council in January with a budget reassessment and updated revenue projections.
