Bell Gardens projects $3.66 million shortfall for FY 2026–27 as card‑room and ballot risks loom

City finance staff told the Bell Gardens City Council on May 11 that the proposed preliminary budget for fiscal year 2026–27 would show general‑fund revenues of about $49.4 million against expenditures of $52.7 million, producing a projected deficit of roughly $3.66 million.

"For fiscal year 26‑27 we are projecting a deficit of 3.6 6 million," Finance Director Manuel Curio said during a multi‑hour budget presentation. Staff said the proposed budget factors in a 7.5% vacancy rate and one‑year labor agreements with existing bargaining units.

The council and staff emphasized two contingent items that could materially widen the shortfall: the outcome of litigation over the attorney general’s proposed card‑room rules and the proposed Measure BG, a 0.25 percentage‑point local sales‑tax increase on the June 2 special election ballot. "There is a hearing scheduled for May 21st of this month," staff said about the card‑room injunction the city is watching. If the attorney general’s rules are implemented, staff estimated casino revenues could fall by an amount in the mid‑millions; staff cited a possible 30% reduction range discussed in analyses presented to the council.

City Manager Michael Kelly and staff also noted that current budget projections incorporate the assumption that Measure BG will pass. "That sales‑tax measure is included in our revenue; if it does not pass, the deficit would grow by about $950,000 for the coming fiscal year," Curio said, noting the measure would not take effect until October, which affects the amount recognized in FY 2026–27.

Staff walked through revenue drivers and major expenditure changes: a one‑time full year of expenses tied to the recently reopened Dreamers Aquatic Center, a roughly $535,000 increase in JPIA (risk‑pool) insurance premiums, and higher retirement and health‑premium costs. Personnel and contractual services together make up about 90% of the general‑fund budget.

Mayor and council members asked about contingency steps if the worst‑case revenue scenarios materialize. City Manager Kelly said the city’s fund balance—projected to be about $23.4 million at June 30, of which roughly $17.7 million is spendable cash—gives the council time to craft measured responses but stressed the need to begin planning now. "A fund balance of about $10 million would be considered an appropriate level as a cushion," Kelly said, adding that Bell Gardens’ single large revenue source makes careful reserves important.

Council members asked staff to return with specific options for reducing recurring costs or identifying alternatives if projected revenues fall short; staff said it will update numbers and present recommendations at the upcoming budget workshop and at the June 8 adoption hearing.

The council received and filed the budget presentation; formal adoption of the budget is scheduled for the June 8 meeting.