An update of San Gabriel’s proposed 2018-2019 budget

As the City continues to develop its budget, here’s an update on how things are developing since our last budget discussion:

At the moment, the City is expected to have a reserve of $411,007 at the end of this current fiscal year as a result of pending lawsuits and unfulfilled revenue streams due to delays in several private developments. The City aims to have a reserve of 10% relative to the general fund, so to quickly replenish reserves, the City will be maintaining a largely status-quo budget in the next fiscal year. This includes diverting $3 million to reserves from higher revenue that’s anticipated in the next fiscal year.

Here is where that increased revenue will come from:

  • Property taxes
  • Utility users tax
  • Sales tax
  • Transient occupancy taxes
    • It’s important to note that transient occupancy taxes will grow as a result of the new Sheraton Los Angeles/San Gabriel and the planned development at 101-111 West Valley Boulevard

Since it’s important that reserves are replenished, staff will be closely monitoring City revenues to ensure they meet expected projections.

Funding sources:

Funding sources

Now, here’s a more in-depth look at the City’s departments and their proposed 2018-19 fiscal year budget:

Department expenditures

Administration ($1,118,651)

  • With the elimination of the Assistant City Manager position, the City will see reduced personnel costs
    • Administration will also reduce its budget for conference travel
  • Increases include additional wireless services and increased City Attorney contractual services

Human Resources ($784,990)

  • The department will be responsible for the same general fund insurance premiums with a drawdown from the risk management fund reserves
  • The department will be making a $222,574 contribution to other postemployment benefits

City Clerk ($498,393)

  • The City Clerk’s office will see an increase in budgeting for records management and destruction alongside automated campaign filing services
    • Additional funds will also be spent on software licensing and publishing in order to remain in compliance with state law
    • These increases will be offset by budget savings

Finance ($2,318,232)

  • The department will save funds by eliminating a professionally designed budget booklet
  • Additional funds will be spent on the San Gabriel Valley Humane Society
  • Finally, there will be no fee increases citywide

Police ($14,449,322)

  • Construction and funding continues on the new police facility
  • Funds will be dedicated to establish a Mental Health Evaluation Officer
  • Funds will also be used to purchase new motorcycles, patrol cars and crime prevention bicycles
  • Finally, the department will continue to attempt to acquire funds from the California Office of Traffic Safety (OTS)
    • These funds are not budgeted since the City will not attempt to summarize what contributions could be made from OTS

Fire ($8,788,598)

  • Funding will be used to enhance the department’s arson program and provide additional Community Emergency Response Team (CERT) program training
  • The department will also collaborate with the Alhambra Fire Department for training, and work with the County of Los Angeles for a service bid

Community Services ($2,569,105)

  • The department will see the implementation of the Parks and Open Space Master Plan
  • Funds will be spent on an after school program at Marshall Park and the “Parks After Dark” programs
  • The department will also revise the Smith Park Pool shared use fee schedule, and adopt a reservation fee for the Marshall Park picnic shelter
  • Finally, as a result of higher Dial-a-Ride fees, the department will begin drafting a proposal for alternate means of service
    • Recall that Mayor Harrington and Councilmember Pu both proposed Dial-a-Ride alternatives, such as the feasibility of microtransit in San Gabriel.

Community Development ($3,143,336)

  • Additional funds from savings will be devoted to the transition from a part-time management assistant to a full-time management assistant under Economic Development
  • Funds will also be spent to initiate the general plan land use & mobility alongside the initiation of a tourism and marketing district
  • Finally, funds will be spent on technology to enhance service

Mission Playhouse ($1,610,615)

  • The Playhouse will continue to implement its development plan to cultivate funding from donors, local businesses and the local Playhouse foundation
  • Funds will also be spent to purchase a department vehicle, and on a feasibility study for bar service at the theater

Public Works ($7,670,287)

  • $1.7 million will be budgeted for the Great Streets Program
    • $183,000 will be spent on catch basin cleaning
  • New initiatives include:
    • A fixed route transit study
    • The implementation of railroad trench insurance and maintenance
    • Funding for the maintenance of Marshall Park

Community Engagement ($150,000)

  • These include events such as the Lunar New Year Festival, Surf’s Up, Fall Fun Festival, Dumplings and Beer Fest, and Cinco de Mayo Mercado

With this draft now in place, we’ll be progressing to the preliminary budget presentation on June 5 to the City Council. You can follow the progression of this year’s budget season by visiting the Budget Central section of our website.