Norwalk City Council reviews proposed budget

Norwalk City Council listens to comments on the upcoming fiscal year budget during their meeting Tuesday June 2, 2026. Photo by Vincent Medina

NORWALK — The Norwalk City Council held a study session on Tuesday to discuss the city’s proposed fiscal year 2026-2027 budget, with staff and council members addressing questions about proposed reductions and clarifying which programs would be affected.

City staff prepared for approximately 10% in spending reductions because the city is facing slower revenue growth, particularly in sales tax collections, while dealing with rising fixed costs such as insurance premiums and pension contributions, according to the city manager. Temporary federal pandemic recovery funds that had supported several positions and programs are set to end in December.

City Manager Jesus Gomez opened the discussion by emphasizing that the budget process remains ongoing. He clarified several points that had caused confusion following an earlier study session, stating that the senior center food program was not being cut and that street sweeping would continue at its current level.

“The senior center food program was not cut. We were able to get more grant money, so we didn’t have to use the general fund as much,” Gomez said. He also noted that street sweeping is not being reduced, and will stay once a week.

Gomez added that staff was recommending keeping several long-standing community events in the budget, including the Halloween parade, tree lighting ceremony, Las Posadas, and the Norwalk 5K.

Staff outlines budget pressures and areas of reduction

Finance Director Jana Stuard  presented an overview of the proposed budget, explaining that the city is operating under economic uncertainty. She noted that sales tax revenue is projected to remain flat and that the city is facing higher fixed costs, including insurance premiums and CalPERS pension contributions.

“Our goal is to support financial sustainability for multiple years into the future and make sure that our operating revenues cover our operating expenditures,” Stuard said.

Stuard said the city had prepared for approximately 10% in reductions as directed by the council in order to maintain a structurally balanced budget. Among the areas seeing reductions are part-time staffing hours, which are being cut by more than 25,000 hours across departments. One full-time position, a child care coordinator role, is also being eliminated under social services. Additionally, reductions were made to certain contract services, including traffic engineering and public works inspection, as well as to mental health presentations offered in multiple languages.

Stuard also addressed proposed changes to recreation programming. While some community events were initially slated for reduction, staff recommended reinstating funding for several popular programs, including the Halloween Parade, Tree Lighting, Las Posadas, and the Norwalk 5K, at a total cost of about $225,000.

She noted that despite these adjustments, certain costs continue to rise. The city’s contract with the Los Angeles County Sheriff’s Department is increasing by 3%, and CalPERS pension contributions are rising by approximately 2.07%, adding about $1.2 million to the budget. Insurance premiums across all funds are also up by $1.2 million. In the General Fund, public safety remains the largest spending category.

Council members respond to concerns

Several council members spoke during the meeting about the difficulty of the budget decisions and the need for fiscal caution. Council Member Rick Ramirez defended the process and encouraged greater public participation.

“We do care about our community, we do care about our residents, that’s why we’re up here,” Ramirez said. He added that residents who want more influence over decisions could consider running for office in the future.

Vice Mayor Margarita Rios asked staff for clarification on proposed changes to street light maintenance. Staff explained that the city has sufficient inventory to cover needs for several months and would return to the council for additional funding if necessary before running out of parts.

Council Member Anna Valencia acknowledged the challenge of balancing community programs with available revenue, stating that difficult decisions are sometimes required to maintain the city’s financial health.

Next steps in budget process

 City Manager Gomez told the council that the budget remains a “living document” and that further adjustments can be made before final adoption. He said staff would bring back a revised proposal at a future meeting, with the goal of adopting the budget on June 16.