HomeMy WebLinkAboutFy 2026-27 Proposed Budget PRINTProposed Operating & Capital
Improvement Budget
Fiscal Year 2026-27 1
The Budget is a Policy Document, a Financial Plan, an
Operations Guide, and Communication Device
Budget Adoption
2
FISCAL YEAR 2026-27
Proposed Budget
•December to June - Departments developed
and balanced budget recommendations in
partnership with City Council
•April 13 - Additional CIP Study Session
•May 5 - Community Budget Workshop
•May 7 - Community Budget Workshop
•June 8 - Proposed Budget Adoption
FISCAL YEAR 2026-27
Proposed Budget
City Council Goals
June 8
3
Proposed Budget – All Funds
FISCAL YEAR 2026-27
Proposed Budget
$109.2 M $136.5 M
Total Revenues
Includes Special Funds
and Funding for
Lifeguard Headquarters
Total Expenditures
Includes Special Funds
and
UPDATED Capital
Improvement Projects
Change is Automatic – Progress is Not
4
$48.5 M
Capital Projects
Ongoing All Funds Capital
Improvement Projects UPDATED
Delivering Results
5
FISCAL YEAR 2026-27
Proposed Budget
General Fund Operating Revenues
FISCAL YEAR 2026-27
Proposed Budget
Property Tax, $17. M,
34%
Sales and Use Tax,
$14.3 M, 29%
Utility Users Tax, $5.4 M,
11%
Charges for
Services, $3.9 M,
8%
Fines and Forfeitures,
$1.9 M, 4%
Transient Occupancy
Tax, $2. M, 4%
Licenses and
Permits, $1.1 M, 2%
Franchise Fees,
$1.2 M, 2%Other Revenue,
$3.3 M, 6%
Property Tax
Sales Tax
Utility Users Tax
Charges for Services
Fines & Forfeitures
Hotel Tax (TOT)
73.5%
89%
6
$50.0 M
General Fund Operating Expenditures
FISCAL YEAR 2026-27
Proposed Budget
Regular Salaries,
$11.4 M, 24%
Retirement, $6.8 M,
14%
Other Pay & Benefits,
$5.7 M, 12%
Maintenance & Operations,
$24.02 M, 50%
7
$50.0 M
Planning for the Future
FISCAL YEAR 2026-27
Proposed Budget
$9.5M $750K
FLEET FUND
Vehicle Replacement
Lifeguard Headquarters &
Police Substation Set Aside
(Fund 101 and Fund 103)
PENSION PAYDOWN
Reducing Unfunded
Liabilities
25%
RESERVE TARGET
City Council Policy For
Emergency Preparedness
$12.4 Million
$838K
$250,000 in additional
discretionary payments to
accelerate payoff of unfunded
liabilities, strengthening long-
term fiscal stability and
investing in our employees’
future benefits
8
CIP Update
FISCAL YEAR 2026-27
Proposed Budget 9
Cost Recovery Schedule
Cost Recovery/Fee Schedule
•When a service/program provides a benefit to specific individuals/groups, it is appropriate for the
individual(s) receiving that benefit to pay for the cost of that service
•Full Cost Recovery and Fee Schedule every 3-4 Years
WHEREAS, the City Council desires that annually the City Manager may update the fees, charges,
rates, and fines based on the annual percentage change in the all-urban Consumer Price Index for
Los Angeles-Long Beach-Anaheim, CA (CPI). If the CPI does not change or goes down in a given
year, no change shall be made to the fee schedule that year.
•Current fee resolution adopted in 2023 authorizes an annual inflationary adjustment to be applied in between comprehensive studies
•The annual update represents an interim CPI adjustment year, adjustment for FY 2026-27 is
3.16% (annual change in regional CPI)
•Other minor changes are proposed to enhance fee schedule clarity and improve correlation
between services provided and costs recovered: Example include addition of late fee charge for
reservations
•Effective date July 1, 2026
FISCAL YEAR 2026-27
Proposed Budget 10
Recommended Action
FISCAL YEAR 2026-27
Proposed Budget
Recommended
Action
Adopt the Fiscal Year 2026-27
Operating and Capital Improvement
Budget, Set the Appropriations Limit
for Fiscal Year 2026-27, and Authorize
the Use of the Cost Recovery Schedule
in Fiscal Year 2026-27