City Council

1.\nConsider receiving a report on the City’s financials, Fiscal Year (FY) 2025-26\nyear-end estimates, and review of the preliminary budget assumptions for\ndeveloping the FY 2026-27 General Fund budget. (Moya/O’Neill) (2 hours)\nRecommendation: 1. Receive and file the City's Statement of Activities for all\nfunds (similar to Income Statement) for the past five years;\n2. Receive and file the City's Fund Balance for Governmental Funds for the\npast five years;\n3. Receive and file the FY 2025-26 General Fund year-end estimates;\n4. Review the budget assumptions to develop the FY 2026-27 General Fund\nBudget, and provide direction on the following:\n• Affirm Revenues of $42.5 million:\nI. Revenue projections of $42.5 million with continuation of the same rate of\n3% for Utility User Tax.\n• Affirm Annual Transfers-In of $320,000, which include:\nI. $240,000 from Public Safety Grant Fund\nII. $80,000 from Measure A Los Angeles Open Space Grant\n• Affirm Expenditures of $38.0 million:\ni. Personnel costs of $16.3 million, which include:\na. All existing and approved positions in competitive (full-time), part-time,\nconfidential, and management groups, and stipends for elected officials;\nb. Assumptions based on current labor agreements for cost-of-living\nadjustment (COLA), performance merits, and benefits;\nc. Underfilling the Accounting Supervisor (Finance);\nd. Freezing the Executive Assistant (City Manager); and\ne. Freezing the GIS Coordinator (Community Development).\nii. Non-Personnel costs of $21.7 million, which include:\na. Los Angeles County Sheriff's Annual Contract for $8.9 million;\nb. Legal Services for $1.3 million; and\nc. Operations and Maintenance for $11.5 million.\n• Affirm Annual (using FY 2026-27 sources) Transfers-Out of approximately\n$3.8 million, which include:\na. $3.4 million to the CIP Fund for capital maintenance and improvements;\nb. $215,000 to the Habitat Restoration Fund\nc. $55,000 to the Sub-region One Fund\nd. $50,000 to the Abalone Cove Sewer Fund\ne. $15,000 to the Improvement Authority for Portuguese Bend\n• Affirm Additional Transfers-Out of $1.1 million to the CIP Fund based on FY\n2026-27 projected revenues exceeding expenditures and annual transfers;\n• Affirm Additional Transfers-Out of $2.6 million, from the FY 2025-26\nunallocated balance, in accordance with the City Council Reserve Policy No.\n41, as follows:\na. $1.3 million to the CIP Fund for capital maintenance and improvements;\nb. $889,500 to the CIP Fund equivalent to the Ladera Linda Community Park\nloan payment;\nc. $400,000 to the Employee Pension Service Fund, in accordance with the\nPension Guidelines;\n5. Receive and file FY 2026-27 Projected General Fund Balance Summary;\nand,\n6. Receive and file the Finance Advisory Committee's (FAC) feedback and\nrecommendations.