City Council

4. Consideration to review the Fiscal Year (FY) 2024-25 year-end estimates and the FY 2025-26 Preliminary Citywide Budget.(Moya/O’Neill/Copp) (30 mins) Recommendation: (1) Review the FY 2024-25 year-end estimates and approve Budget Adjustments in the General Fund by reducing the budget in the amount of $530,000 in Non-Personnel and increasing Transfers-Out by $100,000 based on year-end estimates; (2) Review the Preliminary FY 2025-26 Budget for the General Fund and affirm the changes since the April 17 Budget Workshop: a. Increase the General Fund Revenues by $130,000 (0.04%) b. Increase Transfers-In from the Public Safety Fund by $70,000 (28%) c. Decrease the General Fund Personnel Expenditure by $32,400 (-0.2%) d. Increase the General Fund Non-Personnel Expenditure by $401,900 (1.9%) based on the information received in May 2025 for the Los Angeles Sheriff Department Contract, City Attorney Contract, and required deductible insurance from the California Joint Power Insurance Authority e. Adjust General Fund Transfers-Out: i. Increase Habitat Restoration Fund by $70,000 ii. Decrease Subregion One Maintenance Fund by $20,000 iii. Decrease Abalone Cove Sewer District Fund by $50,000 iv. Decrease Improvement Authority Portuguese Bend Fund by $15,000 v. Add the additional transfer to the CIP Fund from $620,000 (affirmed on April 17, 2025) to $546,650, minus the potential increase of $150,000 of tax assessments from ACLAD/KCLAD. (3) Review and approve the FY 2025-26 Preliminary Citywide Budget consisting of the Capital Infrastructure Program (CIP) Fund and program list, Special Revenue Funds, and Permanent Funds and affirm the changes since the April 29 Budget Workshop: a. Adjust CIP Fund’s Transfers-In CIP from $620,000 (affirmed on April 17, 2025) to $546,650, minus the potential increase of $150,000 of tax assessments from ACLAD/KCLAD. b. Increase the Capital Improvement Program from $27.5 million to $28.6 million, based on the following adjustments: i. Increase overall budget for landslide to reflect approximately 33% year-over-year decrease in costs for landslide emergency stabilization measures as compared to a 50% year-over-year decrease presented during the CIP Budget Workshop. ii. Increase CIP Fund Expenditures by $1,055,000 as follows: • Increase by $210,000 to fund the Portuguese Bend Landslide Remediation Project Design (BRIC Phase 1) using only the CIP Fund rather than the BRIC grant and CIP match in the event that the BRIC grant Phase 1 awards are revoked. • Increase by $700,000 for the addition of a pilot program subsurface geophysical/hydrogeology assessment to the landslide surface drainage study. • Decrease Civic Center Campus Master Plan by $105,000 • Decrease Lift Station Improvements at Lower Point Vicente by $100,000 • Increase Roadway Maintenance (PVDE) by $350,000 iii. Decrease Gas Tax – HUTA Fund by $500,000 iv. Increase Gas Tax – SB1 Fund by $750,000 v. Increase Proposition C Fund by $150,000 vi. Decrease Measure R Funds by $400,000 vii. Decrease Federal Grant Fund by $1,436,277 viii. Increasing State Grant Fund by $1,495,000 (4) Review and approve the FY 2025-26 Preliminary Budget for Internal Service Fund: a. Equipment Replacement Fund includes $310,800 in annual charges for reserves and interest earnings, and $781,929 or 15% of the replacement value of equipment and depreciation. b. Employee Pension Service Fund includes $400,000 in Transfers-In and $662,000 in CalPERS payments, including $100,000 in proposed additional payment towards the City’s Unfunded Accrued Liability for CalPERS with no impact to the General Fund; and (5) Direct Staff to return on June 17, 2025 for the budget public hearing and budget adoption consideration. Agenda Report