City Council Agenda Report
June 2, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Jana Stuard, Director of Finance/City Treasurer
Jennifer Hernandez, Administrative Services Supervisor
SUBJECT: FISCAL YEAR 2026/27 PROPOSED BUDGET
Background:
Each year the City is required by the Norwalk Municipal Code to prepare an annual budget and present it to City Council for public consideration. The proposed budget for the upcoming fiscal year, which covers the period of July 1, 2026 through June 30, 2027, was distributed to the members of City Council on May 20, 2026, and presented at a special meeting held on May 23, 2026. The document was also made available for public review in the City Clerk’s Department and on the City’s website.
The Fiscal Year (FY) 2026/27 Proposed Budget contains the following sections:
Budget Summaries:
✓Changes to Fund Balances/Working Capital
✓Inter-Fund Transfers
✓All Funds – Expenditure Summary
✓All Funds – Full Time Positions and Part Time Hours
✓General Fund Revenue Summary
✓General Fund Expenditure Summaries by Type and Function Revenues – all funds
Capital Outlays
Capital Projects – carryover and new projects.
Department Summaries – contains the following information for each departmental division (Budget Unit):
✓Organizational Chart – represents organizational structure of each department
City Council June 2, 2026
FY 2026/27 Proposed Budget Page No. 2
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✓Personnel Information – summarizes budgeted full-time positions and part- time hours.
✓Activities and Objectives
✓Activity Detail – contains the explanation and/or the breakdown of certain expenditure line items, such as contract services, membership, special studies, special projects, etc.
✓Departmental Expenditure Budget – details line items per Budget Unit.
As the FY 2026/27 Budget has been prepared in an economic and geopolitical environment of uncertainty, City Council directed staff to develop proposed operating budget reductions totaling 10% of departmental operating budgets in the Proposed Budget. Staff presented proposed reductions for City Council’s consideration during the special meeting held on May 23, 2026.
In addition to estimated savings of $1,892,129 under the Los Angeles County Sheriff’s Department contract, the City Council approved a total of $1,966,201 in budget reductions, which will be incorporated in the financial plan for the upcoming fiscal year. Below is a summary of approved reductions:
Table 1: Approved Budget Reductions Summary by Expenditure Category The majority of approved program reductions are related to city-wide programs and special recreational events. No public safety programs have been eliminated from the Proposed Budget. During the special meeting, the City Council also directed staff to prepare options for scaled-down versions of popular recreational events, up to $225,000 in total combined cost.
Following City Council’s direction provided during this, and subsequent budget review meetings, a final budget will be prepared and submitted for adoption at a public hearing scheduled for a City Council meeting in June.
Fiscal Impact:
Contingent on City Council’s direction, the proposed budget, when adopted, will serve as the City’s expenditure plan for a one-year period, covering July 1, 2026 through June 30, 2027.
E xpenditure Category R eduction Amount Contracts (564,372)Professional Development(14,500)Software (26,860)Operations (477,550)Programs (882,919)LA County Sheriff's Contract(1,892,129)T OT AL BUDGE T R E DUCT IONS(3,858,330)$ City Council June 2, 2026
FY 2026/27 Proposed Budget Page No. 3
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Citizens Advised:
Draft Budget on file with City Clerk’s Department and published at the city’s web page:
https://www.norwalk.org/departments_services/finance/budget_and_financial_reports/index .php
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 3: Create and sustain resilient and economically prosperous community
Recommended Action:
The Fiscal Year 2026/27 Proposed Budget is presented for discussion and direction.
Attachments:
1. Summary of Changes to Fund Balances – All Funds
2. General Fund Revenue Summary
3. Expenditure Summary – General Fund
4. Operating Budget Reductions approved on May 23, 2026
5. General Fund Unassigned Fund Balance Projection