Development News for South El Monte, California

City Council Reviews Budget Deficit Projections, Considers Cost-Saving Measures and Revenue Options

The City Council engaged in a budget study session to review the fiscal year 2026-2027 budget proposal and a five-year financial forecast. The 2026 fiscal year concluded with a surplus of $813,000, but the city tapped into reserves due to a $1.1 million investment in infrastructure. For fiscal year 2026-2027, a deficit of $728,000 is projected, attributed to slower revenue growth and increased costs. Several measures were proposed to balance the budget, including postponing a $5 million investment, delaying capital outlay projects and general plan updates by one year, and assuming two staff positions might be eliminated. Additionally, a $797,000 fund balance from the COPS fund may be applied to the general fund sheriff contract. The council also discussed potential contingency plans such as updating fee studies, conducting a community survey on service priorities, and considering a utility user tax, though council members expressed reluctance towards the latter. The budget discussion also touched upon staff concerns regarding the balance between community events and essential services, the impact of new developments like In-N-Out, and the need for transparency in financial reporting, particularly for organizations receiving waivers and funds.

City Council Approves Distribution of Remaining Scholarship Funds to Local Students

Diana Gomez, assistant to the City Council, provided an update on the South Almani Community Foundation account activity and proposed allocation of funds for student scholarships. The 2026 State of the City event raised $35,400. As of June 1, 2026, the account balance was $35,024.26 after accounting for bank charges. The State of the City Committee allocated $31,000 for scholarships to graduating seniors from South Almani High School, distributed on the meeting day, leaving a remaining balance of $4,024.26 after accounting for annual bank fees. Staff recommended allocating the remaining funds to provide $1,000 scholarships (10 students at $100 each) to schools in South Almani, including Epiphany, Shively, Miramoni, and potentially others. Epiphany requested consideration for 12 scholarships due to its graduating class size. Councilmember Acosta proposed including Miramoni and offered to personally cover the additional $200 for Epiphany. A motion to approve the scholarship distribution, including Miramoni and the additional funds for Epiphany, passed 4-0.

Residents Voice Strong Opposition to Lexington-Gallatin Warehouse Project Amidst Environmental and Traffic Concerns

The City Council discussed the Lexington-Gallatin Warehouse Project, which is not on the current agenda for a vote but remains a significant point of concern for residents. Multiple residents spoke during public comment expressing strong opposition to the project, citing environmental impacts, increased pollution, traffic congestion, noise pollution, and inadequate infrastructure to handle the proposed 27-dock warehouse and associated truck traffic. Concerns were raised about the proximity to homes, South Almani High School, and Whittier Narrows recreation area. Residents also questioned the contracting of Kimley Horn for the EIR due to past work with the developer, Magellan Value Partners, and alleged a conflict of interest. The council was urged to consider the long-term health and environmental consequences, reject proposed general plan amendments and zone changes, and prioritize residents' well-being over developer interests. Some residents felt misled by council members who they claim only mentioned a park and not a warehouse during outreach. The council voted to continue the public hearing for item 8A regarding this project to a date uncertain, as staff is working with the applicant to address resident and council concerns, particularly regarding flood easement and water retention calculations.