What is a Budget?
A budget is just a plan. It’s not a restriction on spending—it’s a plan for how the City will spend revenue. It’s a plan for what’s coming in and what’s going out. The annual budget process gives revenue a purpose. The budget is developed based on City Council priorities balanced against available revenue. As a “full-service” City, Montebello must provide funding for police, fire, parks and recreation, street maintenance, transit (Montebello Bus Lines), park maintenance, information technology, infrastructure improvements to City-owned buildings and streets, administration and management, and a host of other essential duties that provide resident with essential services.
Fiscal Year 2026-27 Budget Process
The annual budget is presented for City Council review, discussion and approval over several public meetings between February and June each year. Several community meetings are held early in the budget development process to promote fiscal literacy and transparency. Follow Montebello’s social media for more information on these community events.
For the Fiscal Year 2026-27 budget, staff will continue to Analyze, Refine and Improve the budget document and overall budget development process. This means paying close attention to revenue and expenditure trends and balancing on-going revenues with on-going expenditures to ensure a balanced budget that leads to lasting fiscal stability.
General Fund Reserves
The City Council first adopted formal, written reserve policies in 2020, and re-adopts these policies annually through the budget process. These policies outline a comprehensive framework for the categorization of reserves held within the General Fund. This policy aims to establish clear guidelines for the allocation and utilization of reserve funds. To see a copy of the current General Fund Reserve Policies, check out the FY 2025-26 Adopted Budget. The policy requires reserves to be placed in specific categories based on their intended purpose. These categories include reserves for economic uncertainties such as disasters, reserves for capital projects, reserves for equipment replacement, and reserves for deferred maintenance. The purpose of these categorizations is to ensure that reserve funds are utilized for their intended purpose and are not allocated arbitrarily.
Financial Reporting and Transparency
Fiscal transparency is important for city governments for several reasons. First, it helps to build public trust and confidence in government institutions. Residents who have access to information about how public funds are being spent can hold elected officials and government agencies accountable for their actions, promoting good governance and reducing the likelihood of corruption. Secondly, promoting fiscal transparency can help prevent fiscal crises by allowing policymakers to identify and address potential budget shortfalls or financial mismanagement early on. This can help ensure that resources are used effectively and efficiently, maintaining financial stability over the long term. Finally, promoting fiscal transparency can help to foster an informed and engaged citizenry. By providing citizens with information about government finances, city governments can encourage public participation in the budgeting process and ensure that public resources are being allocated in ways that reflect the priorities and needs of the community. Overall, promoting fiscal transparency is a key component of good governance that builds trust, prevents fiscal crises, and fosters an informed and engaged citizenry.