City Council

4.\nConsideration to review the Fiscal Year (FY) 2024-25 year-end estimates and\nthe FY 2025-26 Preliminary Citywide Budget.(Moya/O’Neill/Copp) (30 mins)\nRecommendation:\n(1) Review the FY 2024-25 year-end estimates and approve Budget\nAdjustments in the General Fund by reducing the budget in the amount of\n$530,000 in Non-Personnel and increasing Transfers-Out by $100,000 based\non year-end estimates;\n(2) Review the Preliminary FY 2025-26 Budget for the General Fund and affirm\nthe changes since the April 17 Budget Workshop:\na.\nIncrease the General Fund Revenues by $130,000 (0.04%)\nb.\nIncrease Transfers-In from the Public Safety Fund by $70,000\n(28%)\nc.\nDecrease the General Fund Personnel Expenditure by $32,400\n(-0.2%)\nd.\nIncrease the General Fund Non-Personnel Expenditure by\n$401,900 (1.9%) based on the information received in May 2025\nfor the Los Angeles Sheriff Department Contract, City Attorney\nContract, and required deductible insurance from the California\nJoint Power Insurance Authority\ne.\nAdjust General Fund Transfers-Out:\ni.\nIncrease Habitat Restoration Fund by $70,000\nii.\nDecrease Subregion One Maintenance Fund by $20,000\niii.\nDecrease Abalone Cove Sewer District Fund by $50,000\niv.\nDecrease Improvement Authority Portuguese Bend Fund by\n$15,000\nv.\nAdd the additional transfer to the CIP Fund from $620,000\n(affirmed on April 17, 2025) to $546,650, minus the potential\nincrease of $150,000 of tax assessments from\nACLAD/KCLAD.\n(3) Review and approve the FY 2025-26 Preliminary Citywide Budget consisting\nof the Capital Infrastructure Program (CIP) Fund and program list, Special\nRevenue Funds, and Permanent Funds and affirm the changes since the April\n29 Budget Workshop:\na.\nAdjust CIP Fund’s Transfers-In CIP from $620,000 (affirmed on\nApril 17, 2025) to $546,650, minus the potential increase of\n$150,000 of tax assessments from ACLAD/KCLAD.\nb.\nIncrease the Capital Improvement Program from $27.5 million to\n$28.6 million, based on the following adjustments:\ni.\nIncrease overall budget for landslide to reflect approximately\n33% year-over-year decrease in costs for landslide\nemergency stabilization measures as compared to a 50%\nyear-over-year decrease presented during the CIP Budget\nWorkshop.\nii.\nIncrease CIP Fund Expenditures by $1,055,000 as follows:\n• Increase by $210,000 to fund the Portuguese Bend Landslide\nRemediation Project Design (BRIC Phase 1) using only the\nCIP Fund rather than the BRIC grant and CIP match in the\nevent that the BRIC grant Phase 1 awards are revoked.\n• Increase by $700,000 for the addition of a pilot program subsurface geophysical/hydrogeology assessment to the landslide\nsurface drainage study.\n• Decrease Civic Center Campus Master Plan by $105,000\n• Decrease Lift Station Improvements at Lower Point Vicente\nby $100,000\n• Increase Roadway Maintenance (PVDE) by $350,000\niii.\nDecrease Gas Tax – HUTA Fund by $500,000\niv.\nIncrease Gas Tax – SB1 Fund by $750,000\nv.\nIncrease Proposition C Fund by $150,000\nvi.\nDecrease Measure R Funds by $400,000\nvii.\nDecrease Federal Grant Fund by $1,436,277\nviii. Increasing State Grant Fund by $1,495,000\n(4) Review and approve the FY 2025-26 Preliminary Budget for Internal Service\nFund:\na.\nEquipment Replacement Fund includes $310,800 in annual\ncharges for reserves and interest earnings, and $781,929 or 15%\nof the replacement value of equipment and depreciation.\nb.\nEmployee Pension Service Fund includes $400,000 in Transfers-In\nand $662,000 in CalPERS payments, including $100,000 in\nproposed additional payment towards the City’s Unfunded Accrued\nLiability for CalPERS with no impact to the General Fund; and\n(5) Direct Staff to return on June 17, 2025 for the budget public hearing and\nbudget adoption consideration.\nAgenda Report