Monrovia projects $3.05 million General Fund deficit

Monrovia’s projected General Fund deficit for fiscal year 2026-27 would rise by about $650,000, from $2.40 million to $3.05 million, under a budget update the City Council  (agenda here) will consider Tuesday, Nov. 17.

The largest change is an $860,000 reduction in expected building permit and plan-check fees. Delays at the 701 S. Myrtle Ave. development (southwest corner of Myrtle and Olive) mean the city expects to collect less in fees this fiscal year than it budgeted. Staff proposes cutting $156,000 in building consulting and inspection costs, primarily because of those delays.

Staff cites rising pension payments as the largest factor behind this year’s deficit. The city’s payment to cover a shortfall in pension funding is $3.89 million this fiscal year and is projected to reach $4.71 million in 2027-28. The city also budgeted $6.14 million for workers’ compensation and liability insurance this year, up about 26% from last year.

Preliminary, unaudited figures show the General Fund ended fiscal year 2025-26 with a surplus of about $776,000. Details.

- Brad Haugaard