Montebello council adopts $237.6 million FY 2026–27 budget with small general‑fund surplus

The Montebello City Council voted unanimously on June 10 to adopt a $237.62 million operating and capital budget for fiscal year 2026–27, a plan city staff said preserves services while accommodating rising public‑safety costs and capital needs.

Director of Finance Michael Solorza presented the budget, which projects $92.9 million in general fund revenue, a $155,100 general fund surplus for the coming year, and a $31 million capital improvement program. "We're looking at a $237.62 million budget," Solorza said. He told council that about 39% of the total is funded through the general fund and that sales and property taxes account for roughly 53% of general fund revenue.

Council discussion focused on a handful of technical items: debt service timing at the city's two municipal hotels, how cannabis license and business‑license revenue is being reported under license and permits, and available balances in targeted capital funds such as the Art & Public Places account. Staff reported an approximately $280,000 balance in the art fund and said the city has begun to use that money for park and memorial rehabilitation.

On the major vote: Councilmember Peralta moved adoption of the budget; Mayor Prom Romero seconded. The clerk called the roll and Councilmember Melendez, Mayor Prom Romero, Councilmember Peralta and Mayor Tamayo each voted "I." The motion passed and the budget was adopted.

What the vote does (and does not) do: The adopted budget authorizes operating appropriations and capital projects for FY 2026–27 and includes ongoing funding for public safety staffing increases, planned solar projects intended to reduce future electric costs, and a continuation of service‑club support. It does not by itself authorize separate capital financing or major property transactions that would require additional council action.

Questions from the public and council: Public commenter James Santana asked about the golf course's operating deficit and whether it will continue to require subsidy; staff explained the course currently shows operational shortfalls and that debt service and operations are being evaluated for refinancing and long‑term structuring. A resident pointed out a typo in a code citation; staff acknowledged the correct citation in the final resolution.

Next steps: With adoption, staff will finalize the fiscal-year program of work, implement the approved capital projects and provide quarterly budget updates to council.