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Home My WebLink AboutBUDGET PRESENTATION 5-8-25BUDGET WORKSHOP FISCAL YEAR 2025-26 Proposed BudgetMay 8, 2025 BUDGET WORKSHOP FISCAL YEAR 2025-26 Public Works Our Infrastructure Beach 2 miles, Wooden Pier Streets 41.8 Centerline Miles, Traffic Signals, Street Signs, Sidewalk, Curbs Buildings & Facilities 4 Community Centers, SBTPC, City Support Facilities Storm Drains 1 Pump Station Serving 11.5 Square Miles, 230+ Catch Basins Fleet 100+ Vehicles & Heavy Equipment Water 2 Reservoirs, 2 Booster Stations, 4 Wells, 73.5 Miles of Pipeline, 5,400+ Services Parks 19 Parks Sewer 6 Stations, 34+ Miles of Pipeline FISCAL YEAR 2025-26 Proposed Budget Workshop Core Services 4 FISCAL YEAR 2025-26 Proposed Budget Workshop Engineering & Administration Operations & Maintenance (O&M) •Beach •Buildings and Facilities •Fleet •Landscape & Parks •Streets •Sanitary Sewer •Storm Drains •Water Utilities •Budget, External Funding, Administration •Capital Improvement Program (CIP) •Development/Permitting Services •Traffic & Transportation Key Accomplishments – O&M FISCAL YEAR 2025-26 Proposed Budget Workshop Routine & Emergency Operations •84 trees planted, and 2,635 trees trimmed (Tree City USA) •Annual West End Pump Station Cleaning •Completed over 240 plan reviews & permits issued to date •Completed repair of 18 water line breaks •Expected to clean and inspect 560+ catch basins •Inspected and cleaned over 100,000 LF of sewer pipeline •Produced over 3,200 acre-feet of water (as of 05/01/25) •Promptly addressed 250+ maintenance requests via MySealBeach •Replaced 70 road signs and restriping over 14,000 linear feet of roadway •Responded to 700+ water related service requests Other Highlights •Completed Fleet Modernization Plan •Delivered over 450 hours of safety training & mandated continuing •Enhanced collaboration with regional/state/federal policy makers •Fuel Modification + Coordination w/OCFA •Initiated NEW State-Mandated Cross Connection Compliance Program Update •Maintained full regulatory compliance in reporting for water, sewer, transportation, etc. •MicroTransit Pilot Program Completion •Provided critical response and support during winter storm events •Strengthened social media presence and continue to expand public outreach education units Fiscal Sustainability Strategies FISCAL YEAR 2025-26 Proposed Budget Workshop •Actively pursuing state and federal grant opportunities to support capital projects and offset operational costs •Aligned budget decisions with the City’s highest service priorities •Conducting a comprehensive water and sewer rate study to ensure financial stability to preserve health & safety •Enhancing operational efficiency by redirecting in-house staff to key maintenance functions, reducing reliance on third-party vendor •Leveraged contract negotiations to reduce costs while maintaining service quality •Strategically deferring and modifying projects to manage costs while maintaining core service delivery FY 2025-26 Proposed Budget Summary FISCAL YEAR 2025-26 Proposed Budget Workshop FY 2025-26 All Funds: ›$46.7 M (not including transfers) General Fund - 101, 13% Special Projects - 103, 2% Tidelands Beach - 106, 7% Air Quality Improvement District - 204, 0.07% SB1 RMRA - 209, 3% Gas Tax - 210, 3% Measure M2 - 211, 3% Citywide Grants - 217, 4% Street Lighting District No. 1 - 280, 1% Capital Improvement Projects - 301, 24% Water Maintenance and Operations - 501, 27% Sewer Maintenance and Operations - 503, 12% Vehicle Replacement - 601, 1% FY 2025-26 EXPENDITURES BY FUND FY 2025-26 FTEs ›Total: 31.93 ›Full-time: 25 ›Part-time: 6.93 FY 2025-26 Proposed Budget Summary FISCAL YEAR 2025-26 Proposed Budget Workshop •Personnel Services 12% •Maintenance & Operations 28% •Sand Berm •Vehicle Replacement Fund •Wholesale Water Purchase •Regulatory Compliance •Capital Program 59% •Misc. Capital Outlay 1% Personnel Services 12% Maintenance and Operations 28% Capital Outlay 59% Misc. Capital Outlay 1% FY 2025-26 EXPENDITURES Amended Proposed Budget Budget FY 2024-25 FY 2025-26 Personnel Services $5.5M $5.8M Maintenance & Operations $13.8M $13.1M Capital Program $19.3M $27.4M Misc. Capital Outlay $25K $435K TOTAL $38.6M $46.7M Transfers $1.4M $2.1M $40.0M $48.8M Aligning Goals, Objectives & Performance Metrics FISCAL YEAR 2025-26 Proposed Budget Workshop Strengthen Public Safety Initiatives Formalized water emergency intertie connection protocols Ensure Fiscal Stability & Efficiency in Governance Proposed Water & Sewer Rate Adjustments Identified Congressional Directed Funding Opportunities Attract & Retain a Highly Skilled Workforce Leveraged CJPIA safety training Assess & Maintain Infrastructure Completed Fleet Modernization Plan to fund and comply with regulations. Promote & Enhance a Strong Local Economy Developing Greater Pier/Main Street Vision Plan to tie LGHQ and surrounding development Aligning Goals, Objectives & Performance Metrics FISCAL YEAR 2025-26 Proposed Budget Workshop Expanding Strategic Technology Investments Continuing City's asset management & maintenance management system build- out Improve Outreach& Engagement Launched MySealBeach app Ensure Continued Excellence in City Services On-going behind-the-scenes City- sponsored event staffing support Protect our Coastal Environment & Resources Collaborating with local/regional/state/federal policymakers to mitigate San Gabriel River trash FISCAL YEAR 2024-25 PROPOSED BUDGET Questions? BUDGET WORKSHOP FISCAL YEAR 2025-26 Capital Improvement Program CIP Funding Sources FISCAL YEAR 2025-26 Proposed Budget Workshop CIP Accomplishments FISCAL YEAR 2025-26 Proposed Budget Workshop •Beverly Manor Production Well Rehabilitation •Bolsa Chica Well Drive Upgrade •Concrete Pier Abutment •FY 24-25 Annual Slurry Seal Program (College Park East) •Heather Park Play Area Improvements •Lampson Avenue Bike Lane Gap Closure •North Seal Beach Community Center •Pier Restroom Renovation •Safety Action Plan (SAP) Adoption •Tennis & Pickleball Center Clubhouse/Courts/Lighting •West End Pump Station VFD Upgrade Recent and On-going Projects FISCAL YEAR 2025-26 Proposed Budget Workshop •8th / 10th Street Parking Lot Design •Annual Arterial Resurfacing Project •Seal Beach Boulevard (Westminster Avenue to North Gate Road) •Seal Beach Boulevard @ I-405 Intersection •Main Street/Great Pier Area Vision Plan •Pump Station #35 Rehabilitation •SCADA Improvement Upgrades •San Gabriel Trash Mitigation Initiative General Funds & Related Grants - $12.5M FISCAL YEAR 2025-26 Proposed Budget Workshop •Galleon Way Hydrodynamic Separator •San Gabriel River Trash Mitigation Initiative •Storm Drain CCTV & Clearing Storm Drain •8th & 10th Street Parking Lot •Pier Concrete Abutment Structural Testing/ Phase 2 Rehabilitation Tidelands •ADA Improvements •City Hall Staircase Improvements •Council Chamber Improvements •LGHQ/PD Substation •North Seal Beach Community Center –Phase II •PD Generator By-Pass •Tennis & Pickleball Center Site Upgrades •Tidelands Facility Security Upgrades Facilities •Park Improvement Program Landscape & Parks FISCAL YEAR 2025-26 Proposed Budget Workshop Streets & Transportation - $6.4M •Annual Slurry Seal Program •Annual Local Paving •ADA barrier removals (i.e., assessment, sidewalks, curb ramps) Annual Programs •Equipment upgrades •Signal and timing upgrades •Fiber/communication Traffic Signals •Alley Repair •Lampson Bike Trail Gap Closure •Main Street/Greater Pier Area Vision Plan •Seal Beach Boulevard @ I-405 Ramps •Seal Beach Boulevard –Westminster Avenue to North Gate Road •Seal Beach Boulevard –405 Freeway to Bradbury Road* •Seal Beach Boulevard –Westminster Avenue to PCH* *Upcoming Grant Pursuit Transportation FISCAL YEAR 2025-26 Proposed Budget Workshop Water - $5.1M, Sewer - $3.4M •Lampson Well Treatment System •LCWA Watermain Lining •SCADA Improvements (on-going) Water •Pump Station #35 •SCADA Improvements (on-going) •Sewer Mainline Improvement Program Sewer Unfunded CIPS - $200M+ •Alley Pavement Rehabilitation (Partially Funded) •Lifeguard Headquarters/PD Substation (Partially Funded) •Sand Replenishment Program Fund •Vehicle Replacement Program (Funded FY 25/26) •Citywide Storm Drain System Improvements (Drainage Master Plan) •Citywide Facilities Upgrade (Facilities Master Plan) •Citywide Parks Upgrade (Parks Master Plan) FISCAL YEAR 2025-26 Proposed Budget Workshop Unfunded CIPs – Water FISCAL YEAR 2025-26 Proposed Budget Workshop •6th Street Alley Water/Sewer Upgrades •Advanced Metering Infrastructure •Beverly Manor Booster Station •Bolsa Chica Water Well Rehabilitation •College Park East/West Water System Improvements •Lampson Avenue Transmission Main •Lampson Well Treatment System •Leisure World Well Reestablishment •Los Cerritos Wetlands Watermain Relining •Navy Reservoir Rehabilitation •SCADA Improvement •Seal Way Water/Sewer Upgrade •Water Infrastructure & Compliance Program FY 25-30 Unfunded Amount: ~$40M Unfunded CIPs - Sewer FISCAL YEAR 2025-26 Proposed Budget Workshop •1st Street Pump Station •6th Street Alley Water/Sewer Replacement •Adolfo Lopez Pump Station •Boeing Pump Station & Force Main •Pump Station #35 (future phases) •SCADA Improvements •Seal Way Water/Sewer Upgrade •Sewer Mainline Improvement Program •Sunset Aquatic Station & Force Main •Other sewer infrastructure replacement and compliance needs FY 25-30 Unfunded Amount: ~$19M External Funding Pursuits FISCAL YEAR 2025-26 Proposed Budget Workshop •Beverage Container Recycling Projects - CalRecycle City/County Payment Program (CCPP) •Galleon Way CDS – OCTA ECP Tier 1 •Lampson Avenue Bike Trail Gap Closure – Active Transportation Grant (ATP) •Lampson Well Treatment System – Orange County Water District (OCWD) Producers Loan •MicroTransit Pilot Program – South Coast Air Quality Management District (SCAQMD) •Safety Action Planning Grant - Safe Streets For All (SS4A) •Seal Beach Boulevard/I-405 Paving – Pavement Management Relief Funding (PMRF) In Progress & Upcoming Pursuits FISCAL YEAR 2025-26 Proposed Budget Workshop •PCH Median Landscaping - Conservation Corp of Long Beach & Caltrans •Safe Streets For All (SS4A) - Implementation Grant •San Gabriel River Trash Mitigation Interceptor o The Ocean Cleanup Partnership •Surface Transportation Block Grant (STBG) o Seal Beach Blvd Rehabilitation (405 to Bradbury Rd &Westminster Ave to Electric Avenue) o SAP Implementation •Beverly Manor Well – State Revolving Funds (SRF) •Bridgeport CDS - OCTA ECP Tier 1 - Orange County Transportation Authority (OCTA) •Community Development Block Grant (CDBG) - Public Facilities/Improvement •Congressional Directed Funding o Representative Min – CPE Flooding o Representative Min -SGR Trash Mitigation •LCWA Watermain – State Revolving Funds (SRF) Mission To provide innovative and sustainable city improvements and services through strategic planning, programming, budgeting, constructing, and maintaining the city’s infrastructure in a cost-effective way that meets the overall needs of the community. Statement FISCAL YEAR 2025-26 Proposed Budget Workshop Questions? BUDGET WORKSHOP FISCAL YEAR 2025-26 Five-Year 2025-2030 The Road to Fiscal Sustainability FISCAL YEAR 2025-26 Proposed Budget Workshop The City of Seal Beach is committed to maintaining high-quality services to our residents while ensuring fiscal responsibility. The Plan outlines City Council’s nine priorities, focusing on serving our community, and maintaining public safety, infrastructure maintenance, community engagement, public service, and financial stability. The Plan balances essential services with quality-of-life enhancements that make Seal Beach a desirable place to live, work, and visit. Through strategic investments and careful planning, we aim to preserve our community's character while preparing for future challenges and opportunities. Property Tax FISCAL YEAR 2025-26 Proposed Budget Workshop Seal Beach Assessed Valuation •$7.6 Billion Orange County Assessor •6,494 Parcels •5.01% YOY/County 5.41% •Median Single-Family Home Sales $1.6 M •Property Tax $16.3 M •34% of General Fund •Stable Revenue Source •.15 of $1.00 •3.5% Avg Growth Projected Sales & Use Tax FISCAL YEAR 2025-26 Proposed Budget Workshop Sales and Use Tax Components $14.6 M: •Largest Consumer Goods and Restaurants •3Q24 Seal Beach Was Down -4.6% •Tariff Purchase Panic •Consumer Fear Impacts Largest Sectors •HdL Forecast Stronger Growth 2027 and 2028 Autos & Transportation 1% Building & Construction 1% Business & Industry 5% Food & Drugs 8% Fuel & Service Stations 8% General Consumer Goods 31% Restaurants & Hotels 29% State & County Pools 17% Utility Users Tax FISCAL YEAR 2025-26 Proposed Budget Workshop UUT $5.4 M Budget 12%: •Electric, Natural Gas, Telecommunications •Lowered in 2014 •Increases in Electric Maintenance & Operations FISCAL YEAR 2025-26 Proposed Budget Workshop •Fire Services •West Comm •Legal Services •Contract Services •Training •Equipment •Insurance *excludes transfers CC Discretionary, $.1M, 1% Supplies/Dues/Trai ning, $.29M, 1% Rental/Lease Equipment, $.05M, 0% Contract Professional, $4.29M, 19% Insurance/Workers Comp, $3.16M, 14% Legal, $.59M, 3% Maintenance, $.19M, 1% Equipment, Materials, other, … IT Services, $1.26M, 6% Refuse, $1.4M, 6% Fire Services, $7.33M, 33% West Comm, $.98M, 4% Intergovernmental , $.58M, 3% FISCAL YEAR 2025-26 Proposed Budget Workshop Salaries and Benefits Five-Year Fiscal Outlook FISCAL YEAR 2025-26 Proposed Budget Workshop FORECAST SUMMARY 2026B 2027F 2028F 2029F 2030F TOTAL REVENUES AND SOURCES 48,192,080 49,642,163 51,100,843 52,273,451 53,359,645 TOTAL EXPENDITURES AND USES 48,111,349 49,456,224 51,313,168 53,417,232 54,999,838 NET OVER/(UNDER) 80,731 185,939 (212,325) (1,143,781) (1,640,194) $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2026B 2027F 2028F 2029F 2030F TOTAL REVENUES AND SOURCES TOTAL EXPENDITURES AND USES 3.3% EXPENDITURE GROWTH 2.4% REVENUE GROWTH FISCAL YEAR 2025-26 PROPOSED BUDGET Five-Year “City Government News” Sun Newspaper, May 8, 2025 - Page 3 FISCAL YEAR 2025-26 PROPOSED BUDGET Revenue Opportunities 2026 2027 2028 2029 2030 Paid Parking $300,000 $300,000 $300,000 $300,000 $300,000 Cannabis Tax $250,000 $600,000 $675,000 $675,000 Business License $150,000 $300,000 $300,000 $300,000 Billboards $500,000 $500,000 $500,000 $500,000 Fee Study $40,000 $40,000 $40,000 $40,000 Hotel TOT $150,000 $300,000 $300,000 $1,240,000 $1,740,000 $1,965,000 $2,115,000 Estimated New Revenue Opportunities Five Year Takeaways FISCAL YEAR 2025-26 Proposed Budget Workshop •Economic Outlook Long-Term is Volatile •Budget Outlook Changes are Relatively Minor •Difficult Forecast with Limited Data and Lots of Risks •Unknowns are Not Built-in •Significant Federal Policy Changes •Labor Market Conditions •Persistently High Prices – Impacts Consumer Spending •Good Fiscal Position •25% Contingency Reserve •Pension Pay Down Plan •Investments in Services •Investments in Fleet •Additional Funding for Emergencies Historical Data FISCAL YEAR 2025-26 Proposed Budget Workshop $2.2 $2.4 $2.6 $3.2 $3.9 $3.6 $3.7 $5.1 $4.0 $4.7 $4.2 $4.9 $5.4 $4.7 $3.4 $3.5 $4.4 $4.3 $5.5 $9.1 $10.1 $11.4 $11.7 $11.5 $11.9 $14.6 $15.8 $16.2 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 2001A2002A2003A2004A2005A2006A2007A2008A2009A2010A2011A2012A2013A2014A2015A2016A2017A2018A2019A2020A2021A2022A2023A2024A2025B2026B2027F2028F$ MILLIONSSALES & USE TAXES - GENERAL FUND $3.1 $3.4 $3.8 $4.2 $5.8 $6.5 $7.3 $7.6 $8.3 $7.4 $8.2 $8.7 $9.6 $9.1 $9.7 $10.0 $10.6 $11.2 $11.5 $12.4 $12.9 $13.4 $14.5 $15.1 $15.4 $16.3 $16.9 $17.5 $- $5.0 $10.0 $15.0 $20.0 2001A2002A2003A2004A2005A2006A2007A2008A2009A2010A2011A2012A2013A2014A2015A2016A2017A2018A2019A2020A2021A2022A2023A2024A2025B2026B2027F2028F$ MILLIONSPROPERTY TAXES - GENERAL FUND BUDGET WORKSHOP FISCAL YEAR 2025-26 Five Year 2025-2030