ACTION MINUTES OF THE CITY COUNCIL
CITY OF VILLA PARK, CALIFORNIA
May 4, 2026
Special Meeting
SPECIAL SESSION
5:00 p.m. - City Council Chambers
CALL TO ORDER / ROLL CALL - Mayor Wu called the Special Session to order at 5:00 p.m.
COUNCILMEMBERS
PRESENT: Miles, Jones, McBride, Mayor Pro Tem Frackelton, and Mayor Wu ABSENT: None
PLEDGE OF ALLEGIANCE TO THE FLAG - The Pledge of Allegiance was led by Councilmember Jones.
PUBLIC COMMENTS
Mayor Wu opened public comments. There being no speakers Mayor Wu closed the public comments.
NEW BUSINESS
1. 2026-27 Second Budget Workshop Presentation
City Manager Steve Franks opened the second budget workshop for the FY 2026-27 budget and reported that the City is in a strong financial position.
Finance Director Lee Siow presented updated FY 2025-26 year-end projections and reported that revenues are projected to exceed budget estimates by approximately $416,000, primarily due to increased property tax revenues, service charges, and investment earnings. Expenditures are projected to be approximately $1.8 million below budget due to personnel savings, reduced operating costs, and capital improvement projects that will be carried forward into the next fiscal year. Staff reported that the City's projected year-end fund balance is approximately $9.9 million.
Finance Director Lee Siow reviewed FY 2026-27 revenue assumptions, including projected increases in property tax revenues, sales tax revenues, sewer assessments, Measure M transportation funds, gas tax revenues, AQMD funding, PEG fees, and grant funding. Staff also discussed the status of CalRecycle grant funding and noted that efforts are underway to seek an extension of grant deadlines. Staff presented an overview of projected fund balances and reserves, noting that the City will maintain approximately 50 May 4, 2026 Villa Park City Council Meeting Minutes
percent of annual operating expenditures in unrestricted reserves. Staff reported that the City remains in a strong financial position and continues to maintain significant reserve levels for emergencies, infrastructure needs, and pension obligations.
City Manager Steve Franks presented the FY 2026-27 expenditure issues, including housing element implementation activities, zoning code and general plan consistency updates, completion of the Local Hazard Mitigation Plan, sewer infrastructure improvements, street rehabilitation projects, trail maintenance, technology upgrades, City Hall maintenance improvements, employee benefits, and reserve contributions.
Staff provided an update on the City's pension and retiree health liabilities. Staff reported that retiree health obligations are essentially fully funded and that the City's pension funding level has improved to approximately 88 percent funded through continued contributions to its Section 115 Trust. Staff indicated that the City remains well-positioned compared to many other agencies with respect to long-term pension obligations.
City Manager Steve Franks continued to discuss several pending budget issues, including future law enforcement contract costs, automated license plate reader technology, Villa Park Road improvements, storm drain and channel erosion repairs, City Hall maintenance projects, trail and fencing repairs, crosswalk safety improvements, technology replacements, and potential applications of artificial intelligence tools for planning and permitting services.
During Council discussion, staff responded to questions regarding the Gann Appropriations Limit, North SPA contributions, the Valley Drive roadway settlement and erosion issue, Villa Park Road infrastructure planning, future development impacts from the East Orange project, automated license plate reader costs and grant opportunities, City Council chamber audio and video system upgrades, and the City's overall financial outlook.
Staff explained that the proposed Villa Park Road improvements involve coordination of multiple projects, including sewer infrastructure upgrades, median improvements, and roadway rehabilitation. Staff noted that timing of the project may be affected by future development activity in neighboring jurisdictions and ongoing grant funding efforts.
Council commented on the City's strong financial condition and expressed appreciation for the conservative budgeting practices that have allowed the City to maintain healthy reserves while avoiding tax increases.
There was no action or further discussion on this matter. As there were no public comments and no further Council comments, Mayor Wu adjourned the meeting.
May 4, 2026 Villa Park City Council Meeting Minutes
ADJOURNMENT
The meeting was adjourned at 5:49 p.m. to the next regular Council meeting to be held in person on Tuesday, May 19, 2026.
So beatle
City of Villa Park
Steve Franks, City Clerk
City of Villa Park
Note: The above minutes are a summary of actions. A DVD recording of this meeting additionally serves as an official record and is available upon request from City Hall.