A preview of the 2018-2019 budget

As we approach our next fiscal year, the City Council held a study session earlier this week to outline how the City can continue to implement its strategic plan within the 2018-2019 budget. If you aren’t familiar with the budget process, think of this meeting as an early discussion of the City’s expected finances relative to the City Council’s goals and priorities for the next year.

Here are several takeaways from the meeting based on three categories:

Funding capital improvement programs

  • Street improvement projects scheduled in 2018-2019 are expected to proceed as expected
  • New funding (such as SB-1 and Measure M) not included in last year’s capital improvement budget will provide approximately $1 million to the City for the 2018-19 fiscal year
  • Construction on the new police facility is still underway, and the City does not need to borrow money for the demolition of the old facilities immediately moving forward
    • As the police facility further develops, the City will need to evaluate its cash flow from the increased transient occupancy tax from the new Sheraton Los Angeles San Gabriel which will be used to repay the construction loan
  • There is no dedicated revenue stream for retrofitting the City’s storm drain system. This isn’t an issue exclusive to San Gabriel as cities across the region struggle to comply with the state’s new storm drain regulations

Economic development

  • There are several commercial and industrial properties that are still vacant that may be utilized in the future. You can look at several opportunity sites here.

Federal, state and county budget implications

  • There is no growth and perhaps even a modest reduction in Community Development Block Grant (CDBG) funding
  • Approximately $800,000 will come from SB-1
  • Approximately $600,000 will come from Measure M

Please keep in mind that all these figures are preliminary and are likely to change from now until the final budget is adopted in June. You can learn more about the 2018-2019 budget here, and we’ll keep you posted as the budget process develops.