CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #C3
DATE: October 14, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Ernesto Marquez, City Manager
BY: Linda Hollinsworth, Finance Director
RECOMMENDATION:
RECOMMENDATION TO APPROVE RESOLUTION NO. 033-2026, OF THE CITY
COUNCIL OF THE CITY OF HAWAIIAN GARDENS AUTHORIZING APPROPRIATIONS AND AMENDING THE CITYWIDE BUDGET FOR FISCAL YEAR 2026-2027 AND
AUTHORIZE THE FINANCE DIRECTOR TO COMPLETE ALL NECESSARY BUDGET
AMENDMENTS AND APPROPRIATIONS
SUMMARY
On June 11, 2025 the City Council adopted the FY 2025-2026 and FY 2026-2027 Citywide Budgets. The budget may be amended at any time by the Council. On October 22, 2025, the Council approved Resolution 032-2025 amending the budgets. After reviewing the budget for this current year, we are recommending various amendments to meet current projections and goals.
Staff met with the Finance Committee on August 27, 2026 to review these proposed amendments. After additional review, a final list of proposed amendments for operating costs and projects has been prepared for Council review and consideration. The recommended changes are requested for the following reasons.
1. Increase in costs that were not anticipated or available at the time of the original budget preparation cycle.
2. To address program or operational changes within the organization.
3. To ensure the City is fiscally responsible by setting aside funds for future liabilities and financial stability.
Below is a list of recommended changes by Category. Attached to this staff report is a more detailed list of amendments and the financial impact.
Agenda Item #C3
October 14, 2026
General Fund
Budget Adjustments Due to Increased Costs:
- Unfunded Pension Liability
- Medical premiums
- Liability insurance
- Workman Comp insurance
- City Attorney
Staffing Changes:
- Two PT Maintenance Worker – Remove 1 Maintenance Specialist - Convert 1 PT Recreation Leader I to FT
- Add PT Accounting Specialist
- Title change from Accounting Manager to Finance Manager - Add position of Payroll Administrator- Replace second Accountant position - Replace previously budgeted PT Senior Clerk position with PT Administrative Assistant Other Operating Cost Adjustments:
- Contract Services – Specialized support for projects
- Modifications to programs and services
- Staff development
Projects:
Vehicle Replacement Fund
Shade structures – Clarkdale and Lee Ware Pool
Repair of Library Fountain
Utility Box Wrapping
Historical Displays
C. Robert Lee Facility Renovations
Furgeson Project
ERP Implementation
PW Trucks
Other Funds
Fund 2 – Traffic Signal Maintenance
Fund 5 – EV Charging Stations/ CM Vehicle
Fund 3 – YAL Program
Increase in Unfunded Pension Liability – All funds with employee labor charges Agenda Item #C3
October 14, 2026
FISCAL IMPACT
The proposed operating cost amendments will increase General Fund expenditure by $1,772,865 and will be funded by revenues and available unassigned General Fund balance. Approximately $200,000 of these amendments are one-time costs. Capital project amendments, totaling $5,783,245, will use available unassigned General Fund balance. The Other Funds that have proposed amendments have adequate revenue or fund balances to accommodate these modifications.
SUGGESTED ACTION
Approve Recommendation.
ATTACHMENTS
A. Summary by Department - General Fund Proposed Amendments B. Detail General Fund Proposed Amendments
C. Proposed Projects Using Unassigned General Funds
D. Proposed Amendments for Special Funds
E. Resolution 033-2026