AGENDA ITEM NO. 15
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AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
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| DATE: | June 16, 2026 |
TO: |
Mayor and City Council |
FROM: |
Milan Mrakich, City Manager |
SUBJECT: |
REVIEW OF COUNCIL’S ALLOWANCE AND COUNCIL EXPENSE AND REIMBURSEMENT POLICY |
RECOMMENDATION:
It is recommended that the City Council receive and file this report.
BACKGROUND:
At the May 19, 2026 City Council meeting, the Council requested to review the City Council allowances and City Council Expense and Reimbursement Policy.
The City Council initially adopted a Council Expense and Reimbursement Policy on April 4, 2006 to comply with Assembly Bill (AB) 1234, which requires a governing body to adopt a written policy, at a public meeting, specifying the types of occurrences that qualify a member of the legislative body to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses if the local agency reimburses members of a legislative body for actual and necessary expenses incurred in the performance of official duties.
The City Council most recently amended the Council Expense and Reimbursement Policy on November 7, 2023 through the adoption of Resolution No. 2023-90 (Attachment No. 1). Pursuant to the Expense and Reimbursement Policy, the amount expensed by City Officials shall not exceed the amount budgeted by the City.
Any unused allowance balance at fiscal year-end may roll over to the following year. Upon expiration of a City Official’s term, any remaining balance in the allowance account reverts back to the General Fund. At the November 7, 2023 Council meeting, the City Council also approved a budget amendment that increased City Council allowances to $5,000 through the adoption of Resolution No. 2023-89. The City has budgeted $5,000 for City Council allowances in each fiscal year since.
City Council allowances may be used for expenditures related to conferences, community events, telephone and internet services, City-related travel, and other expenditures necessary for the performance of official City business.
The City Council initially adopted a Council Expense and Reimbursement Policy on April 4, 2006 to comply with Assembly Bill (AB) 1234, which requires a governing body to adopt a written policy, at a public meeting, specifying the types of occurrences that qualify a member of the legislative body to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses if the local agency reimburses members of a legislative body for actual and necessary expenses incurred in the performance of official duties.
The City Council most recently amended the Council Expense and Reimbursement Policy on November 7, 2023 through the adoption of Resolution No. 2023-90 (Attachment No. 1). Pursuant to the Expense and Reimbursement Policy, the amount expensed by City Officials shall not exceed the amount budgeted by the City.
Any unused allowance balance at fiscal year-end may roll over to the following year. Upon expiration of a City Official’s term, any remaining balance in the allowance account reverts back to the General Fund. At the November 7, 2023 Council meeting, the City Council also approved a budget amendment that increased City Council allowances to $5,000 through the adoption of Resolution No. 2023-89. The City has budgeted $5,000 for City Council allowances in each fiscal year since.
City Council allowances may be used for expenditures related to conferences, community events, telephone and internet services, City-related travel, and other expenditures necessary for the performance of official City business.
DISCUSSION:
The City’s annual budget includes for City Council allowances. The table below lists the Council allowance and expenditures from July 1, 2023 to May 14, 2026 (see Attachment No. 2 for details).
As reflected in the table above, annual allowance balances vary among Council Members based on individual expenditure levels and the policy provision allowing unused balances to roll over from year to year. As a result, some Council Members have accumulated significant available balances.
As reflected in the table above, annual allowance balances vary among Council Members based on individual expenditure levels and the policy provision allowing unused balances to roll over from year to year. As a result, some Council Members have accumulated significant available balances.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this staff report.
OPTIONS:
The City Council has the following options:
- Receive and file this report;
- Eliminate allowance rollovers;
- Cap accumulated allowance balances;
- Adjust annual allowance amount; or
- Provide alternative direction.
Prepared by:
Karen Ogawa, Finance Director
Additional Approval:
Roxanne E. Lerma, Assistant City Manager
Fiscal Impact
FISCAL IMPACT:
There is no fiscal impact associated with receiving and filing this report. Any future amendments to the City Council Expense and Reimbursement Policy that increase annual allowance or modify reimbursement provisions may have a fiscal impact and would be presented to the City Council for consideration at a future meeting.
Attachments
- Attachment No. 1 - Revised Council Expense and Reimbursement Policy
- Attachment No. 2 - Council Allowance Expenditures
CITY COUNCIL GOALS & OBJECTIVES:
Maintain Good Intergovernmental Relations