City Council

2. Consider the Fiscal Year (FY) 2025-26 year-end estimates and the FY 2026-\n27 Preliminary Citywide Budget.(Moya/O’Neill/Copp) (60 mins)\nRecommendation: 1. Receive and file the FY 2025-26 General Fund year-\nend estimates;\n2. Review the FY 2026-27 Preliminary General Fund Budget and approve the\nfollowing:\n• Operating Revenues of $42.5 million:\ni. Revenue projections of $42.5 million with continuation of the same rate of\n3% for Utility Users Tax.\n• Operating 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• Operating Expenditures of $37.5 million:\ni. Personnel costs of $16.1 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 and employment agreements for cost-\nof-living adjustment (COLA), performance merits, and benefits; c. Underfilling\nthe Accounting Supervisor (Finance);\nd. Freezing the Executive Assistant and deferring funding for one part-time\nPublic Safety Liaison (City Manager); and\ne. Freezing the GIS Coordinator, and deferring funding for one Assistant\nPlanner and one Senior Planner (Community Development).\nii. Non-Personnel costs of $21.4 million, which include:\na. Operations and Maintenance for $11.3 million;\nb. Los Angeles County Sheriff's Annual Contract for $8.9 million; and\nc. Legal Services for $1.25 million.\n• Operating Annual (using FY 2026-27 sources) Transfers-Out of\napproximately $3.8 million, which include:\na. $3.4 million to the Capital Infrastructure Projects (CIP) Fund for capital\nmaintenance 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• Additional Transfers-Out of $1.1 million to the CIP Fund based on FY 2026-\n27 projected revenues exceeding expenditures and annual transfers;\n• Additional Transfers-Out of $5.1 million from the FY 2025-26 unallocated\nbalance in accordance with the City Council Reserve Policy No. 41, as follows:\na. $3.8 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;