Inglewood City Council to Consider $96 Million Budget Amendment Amid Questions About Fund Transparency
The Inglewood City Council will consider a significant budget amendment this week that would add $96 million in encumbrances to the 2025-2026 fiscal year budget, raising questions from residents about municipal finance transparency.
According to the Finance Department’s request on the December 9 city council agenda, the funds represent purchase orders and contracts carried over from the previous fiscal year. The department states that staff conducted a comprehensive review of all outstanding encumbrances as of September 30, 2025.
The $96 million figure represents a 62 percent increase over the prior year’s encumbrance carryover, which city officials attribute to “continued advancement” and “increasing capacity to deliver large-scale infrastructure and service improvements.”
Of the total amount, approximately $58.1 million—or 60 percent—is associated with Measure R funding for the Inglewood Transit Connector project. An additional $5 million relates to the Residential Sound Insulation Program, and $4.9 million pertains to Water Fund commitments.
The budget amendment comes as the city has been discussing potential water bill increases. The city recently mailed public hearing notices indicating the Water Fund would have a negative fund balance by the end of the current fiscal year.
Mayor James T. Butts Jr. has previously addressed concerns about the city’s budget documents, stating that while they may appear to show a deficit, additional fund balances exist that are not immediately visible in the main budget presentation.
City Manager Luis Atwell confirmed that Measure IT maintains a positive fund balance of $7.3 million.
The public hearing for the budget amendment is scheduled as part of the December 9 city council meeting. Residents interested in the city’s financial decisions are encouraged to attend or submit written comments.
The city is required to present its first-quarter financial position no later than February 2026.
