City Council Special Meeting Community Budget Workshop

CITY OF BELL GARDENS AGENDA City Council Special Meeting Community Budget Workshop Wednesday, May 14, 2025, 6:00 PM Agenda en Español LOCATION: Bell Gardens Veterans Park - Ross Hall, 6662 Loveland Street, Bell Gardens, CA 90201 The special meeting will be held at Bell Gardens Veterans Park in Ross Hall. The public may attend the meeting in person as instructed below. You may view the meeting live on the City's website at https://www.bellgardens.org/i-want-to/watch-event. ACCESSIBILITY: If requested, the agenda will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability-related modification or accommodation, in order to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7705 or via email to CityClerkDesk@bellgardens.org no later than 24- hours before the scheduled meeting. PUBLIC PARTICIPATION: The members of the public may address the City Council on any item listed on the agenda. Public comments are limited to three (3) minutes, unless different time is announced by the presiding chair. IN-PERSON: Members of the public can provide in-person comments. Bell Gardens Veterans Park - Ross Hall will have seating available for members of the public to attend the meeting in person, subject to capacity limits. Public comments are limited to (3) minutes per speaker, unless different time is announced by the presiding chair. Speakers who wish to address the City Council should do so by submitting a "Public Comment Card" by 6:00 pm. WRITTEN COMMENTS: Public comments may be emailed to PublicComments@bellgardens.org or mailed to: City Clerk's Office, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the City Council prior to consideration of the agenda, please submit written comments no later than one (1) hour prior to the meeting. Written comments, as well as any communications received after, will be Page 1 of 25 distributed to the members of the City Council and will be part of the official public record of this special meeting. For more information, you may contact the City Clerk's office during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704. Page 1. CALL TO ORDER 2. ROLL CALL OF CITY COUNCIL MEMBERS Marco Barcena, Councilmember Isabel Guillen, Councilwoman Francis De Leon Sanchez, Councilwoman Miguel De La Rosa, Mayor Pro Tem Jorgel Chavez, Mayor 3. PUBLIC COMMENTS ON AGENDA ITEMS ONLY During this time, the members of the public may address the City Council Members regarding any items listed on the special meeting agenda. Public comments are limited to 3 minutes per person, unless different time is announced by the presiding chair. 4. BUDGET WORKSHOP 4.1 Proposed Fiscal Year 2025-2026 Budget 3 - 25 Presentation 5. ADJOURNMENT Daisy Gomez, City Clerk Agenda Posted on May 13, 2025 Page 2 of 25  City of Bell Gardens Community Budget Workshop Page 3 of 25 Fiscal Year 2025 – 2026  Bell Gardens Budget - Overview 1. FY 24-25 projected deficit of $3.3M for end of year. 2. Fiscal 25-26 budget is projected to be balanced, with no surplus or deficit. FY 25-26 budget includes the final year of a 3-year labor agreements. 3. Has a current employee vacancy rate of 7.5% 4. Card Room Revenue reduced from previous year 5. Includes transfer of $2.6M from cannabis to GF Page 4 of 25 6. Aquatics includes half year of program 2 expenditures Approx $2.23M  General Fund Projection FYE June 30, 2025 (FY2024-2025) Page 5 of 25 3  FY2024-2025 General Fund Projection FY2024-2025 Adopted Mid-Year End-of-Year Revenues $46,236,251 $42,828,183 $43,296,235 Expenditures $46,163,848 $46,671,996 $46,650,545 Surplus/(Deficit $72,403 ($3,843,813) ($3,355,310) ) $500,000 Change in Fund Balance $72,403 FY2024-2025 $0 Adopted Mid-Year Projected ($500,000) Projection at 6/30/24 ($1,000,000) ($1,500,000) ($2,000,000) ($2,500,000) ($3,000,000) ($3,500,000) ($3,355,310) ($4,000,000) Page 6 of 25 ($3,843,813) ($4,500,000) 4  General Fund Projected Fund Balance Projected Fund Balance at Fund Balance at June $37,980,82 June 30, 2025 30, 2024 3 Assigned to Liabilities, $ - Projected Change in Fund ($3,355,31 Balance (FY2024-25) 0) Nonspendabl Assigned/Unassigned e (Water (Leave Accruals, Fund Projected Fund Balance at $34,625,51 General Obligations & Receivables June 30, 2025 3 Contingency), & Others), $27,761,990 $6,863,623 *Programmed Aquatic $20,625,51 Center Expenditures $14M 3 Projected Future FB Total Fund Balance FY 2021-22 to FY 2024-25 $ 40,000,000 $ 35,000,000 $ 30,000,000 $ 25,000,000 $ 20,000,000 $ 15,000,000 Page 7 of 25 $ 10,000,000 $ 5,000,000 $- 2021-22 2022-23 2023-24 2024-25 2024-25 5 Actual Actual Actual Adopted Projected  General Fund Budget FYE June 30, 2026 (FY2025-2026) Page 8 of 25 6  General Fund Budget FY2025-2026 Presented FY2025-2026 Budget Revenues $50,060,167 Expenditures $50,060,167 Surplus/(Deficit) $0 FY 2025-2026 General Fund Budget $60,000,000 $50,060,167 $50,060,167 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Page 9 of 25 Revenues Expenditures 7  General Fund Budget REVENUES July 1, 2025 – June 30, 2026 (FY2025-2026) Page 10 of 25 8  General Fund Revenue Summary FY 24-25 FY 25-26 Increase/ Revenue Source Adopted ($) Proposed ($) (Decrease) ($) Card Club Tax 19,836,000 19,020,000 (816,000) Motor Vehicle In-Lieu 5,665,000 6,025,863 360,863 Sales & Use Tax 4,010,213 4,024,869 14,656 Measure A-Add on Tax (.75%) 3,762,002 3,816,350 54,348 Parking Lot Rental 2,731,996 3,177,868 445,872 Operating Transfers In 0 2,915,000 2,915,000 Hotel and Marketplace Ground Lease 1,868,047 1,868,047 0 Property Tax – Secured 1,450,440 1,486,701 36,261 Rental Registry Fees 650,000 750,000 100,000 Loan Repayments (ROPS) 770,565 748,122 (22,443) Transient Occupancy Tax 669,500 650,000 (19,500) Interest Income 600,000 550,000 (50,000) Utility Franchises 405,000 405,000 0 Loan Proceeds 407,400 400,000 (7,400) Building Permits 278,110 350,000 71,890 Pool Fees 25,750 350,000 324,250 Billboard Lease Rev 310,000 310,000 0 Post ABx1290 Pass Through 247,200 300,000 52,800 Page 11 of 25 Other Combined Revenue 2,549,028 2,912,347 363,319 Total Revenue $46,236,251 $50,060,167 $3,823,916 9  Cannabis Revenue Transfer FYE 06/30/2025 • Estimated Cannabis Fund Balance $400K • Estimated Revenue Fund $1.1M FYE 06/30/2026 Initial $100K Annual Payments • Estimated Community Benefits $1.75M FYE 06/30/2026 Operating Fees Total FYE 06/30/2026 Cannabis Fund $3,250,000 Balance 80% for Recreation/Aquatics programming $2.6M to be transferred to GF FYE 06/30/2026 Estimated Cannabis Fund $650K Balance Page 12 of 25 10  General Fund Revenue Composition General Fund Composition FY2025-2026 Post ABx1290 Pass Throughs 0.60 Billboard Lease Rev 0.62 Pool Fees 0.70 Building Permits 0.70 Loan Proceeds 0.80 ØTop Ten Revenue Sources Utility Franchises 0.81 Equals 87.56% of the Total Interest Income 1.10 Transient Occupancy Tax 1.30 Loan Repayments 1.49 Rental Registry Fees 1.50 Property Tax - Secured 2.97 Hotel and Marketplace Ground Leases 3.73 Operating Transfers In 5.82 Parking Lot Rental 6.35 Add-on Sales Tax (.75%) 7.62 Sales & Use Tax 8.04 Motor Vehicle In-Lieu 12.04 Page 13 of 25 Card Club Tax 37.99 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 11  Casino Revenues 2013 - 2026 Historical Casino Revenues 2013 -2026 $ 18,985,139 $ 19,020,000 $ 20,000,000 $ 18,174,682 Proposed $ 18,000,000 $ 16,000,000 $ 14,138,417 $ 14,000,000 $ 14,329,820 $ 15,843,859 $ 12,000,000 $ 12,930,235 Projected $ 9,683,860 $ 9,836,243$ 12,787,942 $ 11,231,347 $ 14,218,970 $ 10,000,000 $ 10,364,272 $ 8,000,000 $ 6,000,000 $ 6,728,349 $ 4,000,000 $ 2,000,000 Page 14 of 25 $- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 12  General Fund Budget EXPENDITURES July 1, 2025 – June 30, 2026 (FY2025-2026) Page 15 of 25 13  General Fund Expenditures Expenditure Type FY 24-25 FY 25-26 FY 25-26 Adopted Proposed Change Personnel Services $29,481,69 $31,854,989 $2,373,298 1 Contractual Services 11,190,885 14,110,961 2,920,076 Department Supplies 1,100,300 1,335,930 235,630 Capital Outlay 2,235,327 2,438,525 203,198 Debt Service 610,461 609,000 (1,461) Transfer to other Funds 2,563,121 1,899,877 (663,234) Transfer to Reserves 200,000 200,000 0 Vacancy Savings Rate (1,179,268) (2,389,124) (1,209,856)) Total Expenditures $46,202,521 $50,060,167 $3,857,651 Page 16 of 25 Ø Personnel Services and Contractual Services make up 91% of budget 14  General Fund Expenditures Personnel Services (63.6 % of Total) Personnel Services FY2024-25 FY2025-26 Increase/ Expenditure Proposed Proposed (Decrease) Salaries $13,728,339 $14,925,241 $1,196,902 CalPERS Retirement 6,394,844 7,179,999 785,155 Health Insurance 2,996,345 2,954,074 (42,271) Part Time 2,317,000 2,867,388 550,388 Overtime 1,173,300 1,158,059 (15,241) Worker's Compensation 696,854 676,896 (19,958) Vac/Sick Leave Cash- Outs 445,000 452,261 (7,261 Holiday Pay 389,000 275,010 (113,990) Other Benefits 996,000 1,073,778 77,769 Other Taxes 345,000 292,283 (52,717) Total Personnel Services $29,481,691 $31,854,989 $2,373,298 Page 17 of 25 15  History of Funded Full-Time Positions By Department Fiscal Fiscal Fiscal Fiscal Fisc Fisc Fiscal Fiscal Fiscal 17-18 18-19 19-20 20-21 al al 23-24 24-25 25-26 21- 22- 22 23 Council 1 1 1 1 1 1 1 1 1 City Manager 4 4 4 3 3 3 3 3 3 City Clerk 2 3 3 3 4 5 5 5 5 Community 9 9 9 10 11 11 13 16 16 Development Finance and 10 9 9 9 10 10 10 10 10 Administration Police 74 74 74 71 73 74 77 77 75 Public Works 28 28 28 28 28 28 30 30 30 Recreation and 12 12 12 11 15 15 15 16 16 Community Services Total 140 140 140 136 145 147 154 158 156 Page 18 of 25 16  Aquatics Expenditures (1/2 FY25-26) Department Dollar Amount Expense Category Salaries Recreation and $303,380 • Including Part-Time Community Services Maintenance & Supply • Office Supplies, Special Supplies, Uniform and Protective Recreation and $23,000 Clothing, Postage, Publications Community Services Contractual Services Public Works & • Utilities, Electrical, Natural Gas, Water, Pool Chemicals, Recreation and $1.8M Janitorial Services, Contractual Services, Aquatics Activity Community Services Scholarships Program Capital Outlay Recreation and • Furniture & Equipment, Facility Improvements, Other $110K Community Development Equipment Projected Aquatics Center Operational Costs in FY 25-26 $2.23M Page 19 of 25 17  General Fund Expenditures By Department July 1, 2025 – June 30, 2026 (FY2025-26) Page 20 of 25 18  General Fund Expenditures by Department FY 2025-2026 Debt Services Transfers for Reserve 1.2% Transfer 3.8% Recreation 14.5% 13.4% in FY24-25 Vacancy Savings Rate Public Works 16.6% City Council 0.7% City Manager, IT & Telecom Legal Services City Clerk 1.5% Police 41.9% 42.3% in FY24-25 Community Development 6.1% Page 21 of 25 Finance, HR & Risk Management 10.2% 19  General Fund Expenditures by Department Percent FY 24-25 FY 25-26 Increase/ Increase/ (Decrease) Department Of Adopted Proposed (Decrease) Explanation Total Increase mainly in Personnel Costs per MOU, CALPERS, Health City Council 0.7% $351,110 $350,563 ($547) Care. Decreases in maintenance and contractual City Manager, IT & Increase mainly in Personnel Costs per MOU, CALPERS, Health 6.0% 2,512,907 3,012,337 449,430 Telecom Care and IT projects. Legal Services 1.8% 925,000 925,000 0 No Change projected. Increase mainly in Personnel Costs per MOU, CALPERS, Health City Clerk 1.5% 822,752 753,671 (69,081) Care, decrease in maintenance and Contractual Community Increase mainly in Personnel Costs per MOU, CALPERS, Health 6.1% 2,811,475 3,050,619 239,144 Development Care and Permit Software Finance, HR & Risk Increase in Personnel Costs per MOU, CALPERS, Health Care and 10.2% 3,970,228 5,119,562 1,149,334 Mgmt. Significant increase in JPIA Liability Insurance Increase in personnel costs per MOU, CALPERS and Health Care. Police 41.9% 19,554,617 20,956,138 1,401,521 Other increases Maint & Supply, increased contractual Srvs costs. Increase in personnel costs per MOU, CALPERS and Health Care. Public Works 16.6% 6,653,881 8,299,754 1,645,873 Other increases Maint & Supply, increased contractual Srvs costs. Software in Capital Outlays Increase in personnel costs per MOU, CALPERS and Health Care. Recreation 14.5% 6,206,233 7,272,762 1,066,529 Offset by decreases in Maint & Supply, Contact Srvs & Capitol Outlays Debt Service 1.2% 610,465 609,000 (1,465) Slight decrease in loan re-payment schedule Transfers 3.8% 2,763,121 1,899,887 (863,234) Decrease in Subsidy to Gas Tax, Prop A and Measure R Page 22 of 25 Transfers for Reserve 0.4% 200,000 200,000 0 Yearly Transfer for Contingency Vacancy Savings Rate (4.8%) (1,179,268) (2,389,124) (1,209,856) Applied 7.5% savings in FY25-26, Total Expenditures 100% $46,202,521 $50,060,167 $3,857,647 20  FY 2025-2026 Budget All City Funds Page 23 of 25 21  All City Funds For fiscal 2025-2026, the proposed expenditures for all thirty-six (36) City funds is $78,793,482. Fund Type FY2025-2026 (Number of Funds) Proposed Expenditures General Fund (1) $50,060,167 Equipment Replacement Funds – 60,000 General Fund in ACFR (1) Special Revenue Funds (24) 19,453,035 Capital Project Funds (2) 3,439,080 Enterprise Funds (Water and Golf)(2) 3,593,460 Page 24 of 25 Successor Agency Funds (6) 2,187,740 Total All City Funds $78,793,482 22  City of Bell Gardens Q&A Page 25 of 25