City Council

2. Consider the Fiscal Year (FY) 2025-26 year-end estimates and the FY 2026- 27 Preliminary Citywide Budget.(Moya/O’Neill/Copp) (60 mins) Recommendation: 1. Receive and file the FY 2025-26 General Fund year- end estimates; 2. Review the FY 2026-27 Preliminary General Fund Budget and approve the following: • Operating Revenues of $42.5 million: i. Revenue projections of $42.5 million with continuation of the same rate of 3% for Utility Users Tax. • Operating Annual Transfers-In of $320,000, which include: i. $240,000 from Public Safety Grant Fund ii. $80,000 from Measure A Los Angeles Open Space Grant • Operating Expenditures of $37.5 million: i. Personnel costs of $16.1 million, which include: a. All existing and approved positions in competitive (full-time), part-time, confidential, and management groups, and stipends for elected officials; b. Assumptions based on current labor and employment agreements for cost- of-living adjustment (COLA), performance merits, and benefits; c. Underfilling the Accounting Supervisor (Finance); d. Freezing the Executive Assistant and deferring funding for one part-time Public Safety Liaison (City Manager); and e. Freezing the GIS Coordinator, and deferring funding for one Assistant Planner and one Senior Planner (Community Development). ii. Non-Personnel costs of $21.4 million, which include: a. Operations and Maintenance for $11.3 million; b. Los Angeles County Sheriff's Annual Contract for $8.9 million; and c. Legal Services for $1.25 million. • Operating Annual (using FY 2026-27 sources) Transfers-Out of approximately $3.8 million, which include: a. $3.4 million to the Capital Infrastructure Projects (CIP) Fund for capital maintenance and improvements; b. $215,000 to the Habitat Restoration Fund c. $55,000 to the Sub-region One Fund d. $50,000 to the Abalone Cove Sewer Fund e. $15,000 to the Improvement Authority for Portuguese Bend • Additional Transfers-Out of $1.1 million to the CIP Fund based on FY 2026- 27 projected revenues exceeding expenditures and annual transfers; • Additional Transfers-Out of $5.1 million from the FY 2025-26 unallocated balance in accordance with the City Council Reserve Policy No. 41, as follows: a. $3.8 million to the CIP Fund for capital maintenance and improvements; b. $889,500 to the CIP Fund equivalent to the Ladera Linda Community Park loan payment; c. $400,000 to the Employee Pension Service Fund, in accordance with the Pension Guidelines;