Budget Balancing: Monrovia Plans Its Financial Future

MONROVIA, CA — Monrovia officials are eyeing around $241.6 million in expenses as part of its two-year budget plan.

The city outlined its proposed financial future through the 2023 fiscal year during the City Council's study session Tuesday night. The full budget proposal is expected to be formally presented to the City Council on June 15, a city official said.

At least some of the expenditures are expected to be used to help pay for the city’s obligations to the California Public Employees' Retirement System and other post-employment benefits, according to an overview of the two-year budget.

Monrovia currently owes around $14.4 million in liabilities to the retirement system and $34.3 million in other post-employment benefits.

Other budget priorities include funding for infrastructure projects around the city and for maintenance work.

Funds raised through the city's Measure K initiative, which implemented a 0.75 percent sales tax increase, will help pay for some of the infrastructure projects, according to the overview.

Monrovia is expected to receive around $6.8 million through the American Rescue Plan and has budgeted $2.1 million to be spent over the next two fiscal years for several projects, including the city’s COVID-19 recovery efforts and some of its infrastructure needs. The other $4.7 million remains unallocated, according to officials.

The city also hopes to build up its general fund reserves by the end of 2023, officials said. Around $92 million will be available in the general fund over the next two years, and the city is expected to spend around $91.4 million, leaving a potential surplus of around $620,000.

More than $63.9 million (around 70 percent) of the general fund will be eaten up by personnel costs. But city officials said several savings measures related to Monrovia's post-pandemic recovery were factored into the proposal to help keep the costs as low as possible.

The measures include eliminating overtime for nonessential employees and not filling 13 vacancies for noncritical positions that saved the city more than $1.1 million, according officials.

Around $1.28 million from the general fund will also be used for maintenance and operations; $1.35 million will go to unspecified costs or be transferred to other funds.

A full copy of Monrovia’s two-year budget overview can be found online at the city’s website.