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Council adopts FY 2026–27 budget, authorizes cost reductions and explores revenue options
Summary
The City Council unanimously adopted the fiscal year 2026–27 budget after a presentation that outlined a near‑term deficit and recommended cost controls, retirement incentives and possible ballot measures such as a warehouse parcel tax or a utility users tax.
The South El Monte City Council on June 16 adopted the FY 2026–27 budget after a presentation from the finance director outlining a multi‑year forecast and proposed cost‑containment measures.
The finance director told the council that a previously projected deficit of roughly $700,000 had been narrowed by a package of proposed cuts and assumptions, including a retirement incentive for a small number of employees, postponement of certain software upgrades, reductions to temporary and part‑time event staffing and trimming of nonessential expenses. "We reworked our five‑year forecast and came up with a revised set of cost‑saving measures that can bring the budget close to balance," the finance director said.
Councilmembers discussed revenue options to stabilize long‑term finances. Staff outlined two main ballot options: a warehouse parcel tax — a special‑purpose tax that would require a two‑thirds voter threshold if dedicated to a specific purpose — and a utility users tax (UUT), which would require a simple majority to place before voters and would go into the general fund. The finance director provided preliminary revenue estimates of different per‑square‑foot rates for the city's roughly 4,000,131 square feet of warehouse space.
Council voted unanimously to adopt the budget. The motion carried 5–0. Council directed staff to return with more detailed revenue projections and community outreach options for any ballot measures.
Why this matters: The budget establishes the city's spending and service priorities for the coming year; council discussion highlighted the tradeoffs between preserving community programs and addressing structural shortfalls.
What's next: Staff will finalize the budget documents, give a public overview of program reductions, and present more detailed revenue and ballot language options if the council elects to pursue a parcel tax or UUT.
