Finance director projects $140,000 FY 2026–27 general‑fund shortfall; council directs staff to seek event funding and shore up insurance fund

Summary

Finance staff presented a FY 2026–27 draft that projects ~$44.5 million in revenue and ~$44.56 million in expenditures, leaving a roughly $140,000 deficit; council directed staff to identify funding sources for special events, approved a recommended $2 million reserve transfer to the internal insurance fund to reduce a negative balance, and asked for follow‑up analysis on long‑term revenue growth.

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Finance Director Rose Tam presented the Baldwin Park City Council with the fiscal year 2026–27 projected budget on June 3, showing general‑fund revenue of about $44.5 million and proposed expenditures of roughly $44.56 million — a projected shortfall near $140,000.

Tam told council the projection reflects increased property tax revenue offsetting lower sales tax receipts, higher CalPERS pension costs and modest increases for departmental cost‑of‑living adjustments. Staff proposed contributing $2 million from reserves to reduce a negative balance in the city’s internal insurance fund, which would reduce the general‑fund reserve to an estimated $10 million while preserving a reserve above the city’s minimum thresholds.

Council and staff also discussed 13 planned special events with an estimated aggregate cost near $600,000; staff said they would seek Measure BP or other external funding sources and return with recommendations at the next meeting. The mayor urged a conservative approach to revenue assumptions and asked staff to continue pursuing interest income and other revenue opportunities.

What comes next: staff will return with a proposed budget for public hearing and final adoption at a future meeting, present options for funding community events, and proceed with the insurance fund transfer as part of the final budget process if council so directs.