On Dec. 9, 2025 the Measure BP Stakeholders Oversight Committee in Baldwin Park voted 3‑2 to forward a staff recommendation that the city accept a $6,000,000 internal loan from the Measure BP fund to help finance the city’s portion of a long‑running legal settlement.

The loan would be drawn from Measure BP’s reserve, replenish the city’s general fund reserve and be repaid under an eight‑year plan that staff said is designed to avoid higher‑cost outside borrowing. Finance director Rose told the committee the city has received about "18,759,000.000" in Measure BP revenue over four years, earned roughly $655,000 in interest and shows a current combined total of "about $20,000,000 as of October," with an ending fund balance of about $11.28 million. Rose said the city has committed $8.8 million to 18 approved projects, has spent about $1.294 million and still has roughly $7.5 million committed but unspent.

Why it mattered

Staff framed the loan as a time‑sensitive step to preserve the city’s general fund reserve and credit rating after the city’s share of a $19.1 million settlement was calculated at $9.35 million (insurance covers the rest). Rose said paying the full amount up front from the general fund and then replenishing reserves with a Measure BP loan saves the city an estimated $259,000 in interest compared with outside borrowing, and maintains reserve requirements that support the city’s credit ratings.

Committee members pressed staff on where repayment would come from and whether the arrangement undermined the Measure BP fund’s purpose. Several members said they and the public had understood Measure BP to be devoted to community projects and that it was not made clear that revenue above an estimated $6,000,000 per year would be transferred to the general fund. "We were not aware," one member said during the meeting. Mayor Pro Tem acknowledged the communication gap and apologized, saying, "I will take responsibility for it, and I will apologize to you guys for that on on that behalf." He and other city officials said the ballot language estimated $6,000,000 a year and that internal budgeting decisions about amounts above that estimate had not been communicated clearly to the committee.

The vote and the motion

Member Orozco moved to approve the internal $6,000,000 loan and the repayment plan; Member Hernandez seconded the motion. The committee recorded three votes in favor and two opposed. The motion carried.

What staff proposed and the repayment mechanics

Staff presented three broad options before recommending the internal loan: (1) pay the settlement from general fund reserves (risking reserve levels and credit rating), (2) borrow externally at an estimated 7 percent interest rate (higher long‑term cost), or (3) use an internal Measure BP loan to restore reserves and repay from projected Measure BP excess revenue above $6 million. Staff’s plan assumes an estimated annual Measure BP receipt of about $7.8 million and proposes using approximately $800,000 per year from the projected excess to repay the loan; any remaining excess would go to general operations.

Concerns raised

Members warned the repayment design could amount to circling community funds through the general fund and stressed the need for enforceable safeguards. Questions included whether repayment would be recession‑proof, whether the arrangement would delay long‑term projects such as the promised sports complex, and whether future leadership might deprioritize loan repayment. Staff said legal counsel had been consulted and that contractual language and staff reports would be drafted for the city council’s review; auditors would also review the arrangement.

Next steps

The committee forwarded its recommendation to the Baldwin Park City Council for final approval. Staff said the settlement payment is time sensitive and the city must address payment deadlines if the council does not act. The committee also asked staff to include clearer documentation of alternatives and stronger legal language in the staff report.

Ending

The committee’s vote followed extended discussion about transparency and the Measure BP fund’s intended use; the council will consider the staff recommendation at a subsequent meeting.