2024-05-21 CC Agenda SPC - ITEM B1 - Second Budget Study SessionCITY OF
ELSEGUNDO
Fiscal Year 2024-25
Second
Budget Study Session
May 21, 2024
Presentation Agenda
1. Overview of Proposed -Revised Revenues, Expenditures, and Fund
Balance
2. Updated Departmental Budgets with Reductions
3. Revised CIP
tiLSEGUN
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 2
Changes from 1 St Budget Study Session to 2nd
Budget Study Session
1. Updated revenues budget
2. Departmental expenditure reductions
3. Main Street Banner Poles Replacement project to $100,000
4. Arts & Culture Advisory Committee Budget (May 7, 2024 CC Meeting)
5. Firefighter to Paramedic salaries (May 7, 2024 CC Meeting)
6. Cancellation of Park Place Extension Transportation Project Design contract of $2,600,000 (May 7,
2024 CC Meeting)
ELSEGUAI
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 3
1 General Fund $88,295,510
53.8% $ ,034,263 56.1%
2
Water Fund
36,850,00
222.5% 34,630,327
20.9%
3
Transportation Funds
2.229,935
1.4% 2,604,345
1.6%
5.7%
4
Debt Service POBs
9,497,716
5.8% 9,500,324
5
Rastewater Fund
5,200,000
3.2% 5,742,073
3.5%
6
General Fund CIP
8,432,500
5.1% 5,360,732
3.2%
7
Equipment Replacement Fund
2,261,969
1.4% 2,228,986
1.3%
8
Norkers Compensation Fund
3,235,881
2.0% 3,424,172
2.1 %
9
General Liability Fund
3,115.000
1.9% 3,105,000
1.9%
10
Dev. Services Trust
270,000
0.2% 270,000
0.2%
11
Public Safety Special Rev.
1,056,120
0.6% 2,326,200
1.4%
12
Other Special Rev.
935,811
0.6% 977,363
0.6%
0.7%
13
Rec & Econ Dev Trust Funds
1,050,000
0.6% 1,124,250
14
ultural Dev. Trust Fund
500,000
0.3% 250,000
0.2%
0.0%
0.2%
15
Debt Service Fund
367,200
0.2% 35,000
16
Solid Waste Fund
600,000
0.4% 300,000
17
IseniorHousingFund
203,099
0.1% 1,038,771
0.6%
18
Golf Fund
0
0.0% 0
0.0%
19
Economic Uncertainty 0 0.0% .0
0.0%
If I '
I ales & Use Tax
$14,750,000
$11,133,191 9 $15,487,500
13,918,801 9 14,000,000
$15,487,500 0
0.0%
2 Business License
14,300,000
12,750,000
12,539,805
14,000,000
0
0.0%
3 �ransient Occupancy Tax
10,413,213 9 13,387,500
13,387,500
0
0.0%
4 Property Tax
10,378,665 9 13,129,176
13,391,759
262,584
2.0%
5
Chevron Tax Reso Agreement
5,500,000
3,476,513 10 5,500,000
5,500,000
0
0.0%
6
Utility User Tax (UUT)
10,634,000
9,199,810 9 11,165,700
11,165,700
0
0.0%
7
Charges for Services
4,952,040
3,876,852 10 5,150,122
5,150,122
0
0.0%
8
Transfers In
50,000
50,000 12 36,000
36,000
4,536,000
0
0
0.0%
0.0%
9 Franchise Tax
4,200,000
1,615,333 9 4,536,000
10 OtherRevenues
3,112,944
3,179,296 10 3,379,296
3,379,296
0
0.0%
11 Intergovernmental
130,000
190,604 10
200,000
200,000
0
0.0%
12 License & Permits
2,182,000
2,037,445 9
2,282,372
2,582,372
300,000
13.1%
13 Interest& Rental Income
2,867,620
2,197,496 9 3,871,287
3,871,287
0
0.0%
14 Fines & Forfeitures
327,101 281,033 9 346,727
346,727
0 0.0%
1
eneral Fund
$98,704,537 C$i5,281,277 ($3,423,260)
-3.5%
2
ater Fund
39,315,822
39,315,822
0
0.0%
3
ransportation Funds
6,557,036
3.957,036
(2,600,000)
-39.7%
4
Debt Service POBs
9,500,314
9.500,314
0
0.0%
0.0%
5
Nastewater Fund
7,837,440
7,837,440
0
6
3eneral Fund/Special Revenue CIP
30,312,501
30,112.501
(200,000)
-0.7%
7
Equip. Replcmt. Fund
9,674,613
9.674.613
0
0.0%
8
i
Vorkers Comp. Fund
3,418,321
3,418.321
0
0.0%
9
eneral Liability Fund
3,769,563
3,769,563
0
0.0%
10
Dev. Services Trust
800,000
800.000
0
0.0%
0.0%
11
ublic Safety Spcl. Rev.
2,541,360
2,541,360
0
12
yther Special Rev.
1,253,035
136,000
1.253,035
0
0.0%
13
�ec & Econ Dev Trust
136.000
0
0.0%
14
15
ultural Dev. Trust Fund
304,604
542,851
272,604
(32.000)
-10.5%
ebt Service Fund
542.851
0
0.0%
16
olid Waste Fund
330,000
330,000
0
0.0%
17
enior Housing Fund
16,295
16,295
0
0.0%
18
olf Fund
0
0
0
0.0%
19
conomic Uncertainty
0
0
0
0.0%
1
Police
$22,734,009
$21,839,001 ($895,008)
-4%
2
Fire*
15,043,226
14,531,892 (511,334)
-3%
5
Recreation, Park and Library
10,937,426
10,553,181 (384,245)
-4%
3
Public Works
9,887,258
9,497,292 (389,966)
4%
4
Non -Departmental
7,067,945
6,785,227 (282,718)
-4%
7
6
8
9
10
Information Technology
Community Development
City Manager
Finance
Human Resources
City Attorney
4,072,086 3,912,086
3,909,187 3,745,094
(160,000)
4%
4%
-4%
4%
(164,093)
(118,830)
2,926,007
2,807,177
2,895,246
2,767,246
(128,000)
2,194,785
2,066,720
(128,065)
-6%
-4%
11
935,450
897,450
(38,000)
12
Pity Clerk
676,095
658,095
(18,000)
-3%
13 ity Council
229,272
224,272 (5,000) -2%
Description
Proposed
Estimated Beginning Unassigned Fund Balance on July 1, 2024
$299669,350
Proposed FY 2024-25 Revenues
$93,034,263
Proposed FY 2024-25 Appropriations (Net of GF CIP)
($90,285,046)
Estimated Ending Fund Balance (June 30, 2025)
$32,418,567
25% Reserve Requirement (based on proposed recurring appropriations)
$22,571,262
Estimated Ending Unassigned Fund Balance after meeting 25% reserve
$7,098,089
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245
FY 2024-25 Proposed- Revised Unassigned Fund
Balance Reserves
• Recommended use of $7,098,089
r $4,996,232 for Proposed GF CIP projects
$2,101,857 remaining reserves / surplus
ELSEGUNi
5/21 /2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 9
10-Year Proposed -Revised General Fund Financial Forecast
$14 0, 000, 000
$120,000,000
$100, 000, 000
$80,000,000
$ 60,000,000
$40,000,000
$ 20,000,000
$0
General Fund Ten -Year Projection
FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032
� Revenues nm�r Appropriations Funs! Balance
$35,000,000
$ 30,000,000
$ 25,000,000
520,000,000
$15,000,000
$10,000,000
$ 5, 000, 000
$0
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 10
Proposed- Revised
FY 2024-25 Department Budget
ELSEGUpJt
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 11
City Council
Proposed -Revised Budget Changes
• Personnel / M&O decrease:
➢ Removed Sister City budget
• Impact to Services:
➢ Cannot offer Sister City program in upcoming fiscal year
5/21 /2024
City of El Segundo 1 350 Main St. El Segundo, CA 90245
12
ELSEGUNi
City Attorney
Proposed -Revised Budget Chances
• Personnel / M&O decrease:
➢ Decreased labor negotiation
• Impact to Services:
➢ Dependent on pace of outstanding labor negotiations
5/21 /2024
City of El Segundo 1 350 Main St. El Segundo, CA 90245
13
E SECUNi
City Clerk
Proposed -Revised Budget Changes
• Personnel / M&O decrease:
➢ Various M&O decreases (ie: Operating Supplies, Advertising/Publishing, Meetings & Travel,
Training & Education)
• Impact to Services:
➢ Impacts departmental operations; may result in requesting appropriation at Mid -Year to fulfill
services
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA90245 14 ELSEGUN
City
Manager
Proposed -Revised Budget Chanqes
• Personnel / M&O decrease:
➢ Freeze Executive Assistant position for 12 months
• Impact to Services•
➢ Increases work for existing departmental staff
ELSEGUN
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA90245 15
Finance &
Treasury;
Non -Departmental
Proposed -Revised Budget Changes
• Personnel / M&O decrease:
➢ Contracted Services reduction: Temporary employees during ERP implementation; GASB 96
Implementation; HdL Sales Tax; UUT Compliance
• Impact to Services:
➢ Staff time will be needed to fulfill services instead of contracting out, reducing staff time spent on
other/additional support or services;
➢ Reducing HdL Sales Tax and UUT Compliance will limit the City in finding potential additional revenue
through third -party audit services
• Non-Departmental:-$282,718 (4%)
➢ Reduction of budgeted vacation and sick pay termination; may result in requesting appropriation at
Mid -Year
ELSEC:UN�
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 16
Human
Resources
Proposed -Revised Budget Changes
• Personnel / M&O decrease:
➢ Freeze HR Analyst Position for 12 months
• Impact to Services
➢ Staff reduction impacts recruitments; creates delays in filling vacant positions; reduces the number
of Citywide training and wellness initiatives
EL'�,EGUNi
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 17
Information
Systems
Proposed -Revised Budget Changes
• Personnel / M&O decrease -
Reduction in computer and computer supplies, contract services, training, repairs and
maintenance
• Impact to Services:
➢ Limits ability to purchase new software solutions;
➢ Impacts operations when new vendor support contracts are needed.
➢ Reduced education and training opportunities;
ELSEGUiVi
5/21 /2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 18
Community
Development
• •Expenditures• •
FY 2024-25 $3 745,094 low $2,813,822�� $931 272
(Proposed -Revised) i
FY 2024-25 (Propossed)ed) $3,909,187 $2,977,915 $931,272
(Proposed)
Change +l--$164,093-$164,093 j L
IL -- -
L - LL"
Proposed -Revised Budget Changes
• Personnel / M&O decrease:
➢ Freeze Plan Check Engineer Position for 12 months
• Change to Services:
➢ Reduction in staff results in delays of processing plan checks and planning entitlements. Contract
services will be used instead, which reduces the revenues generated by plan checks and planning
entitlements.
5/21 /2024
City of El Segundo 1 350 Main St. El Segundo, CA 90245
19
ELSEGUN
Police
Department
Proposed -Revised Budget Chanaes
• Personnel / M&O decrease:
➢ Freeze two (2) Police Officer positions for 12 months
➢ Reduce overtime in all divisions
➢ Decrease multiple operating expenses
➢ Reduction in Equipment Replacement Charge
• Impact to Services:
➢ Reduction in deployment of an adequate number of officers to keep the City safe, to investigate crimes, and for
community engagement.
➢ Reducing overtime limits officer participation in special events and special operations.
➢ M&O decreases impact equipment and training needs for the department.
➢ Equipment Replacement Fund reduction requires the extension of the life of equipment for another year, which
may result in a decrease in officer safety.
ELSEGUN
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 20
Fire
Department
Proposed -Revised Budget Chanqes
• Personnel / M&O decrease:
➢ Freeze Fire Marshal Position for 12 months
➢ Reduce contract services
➢ Reduction in Equipment Replacement Charge
• Impact to Services:
➢ Freezing Fire Marshal position will result in the Fire Chief performing the services of the Fire
Marshal, reducing time dedicated to Chief duties.
➢ Fire Plan check services will be reduced, which will reduce revenues generated by plan checks.
➢ Equipment Replacement Fund reduction requires the extension of the life of equipment for another
year, which may result in a decrease in providing emergency services when needed
Department budget includes $50,208 for Fire Fighter to Paramedic recruitment
5/21 /2024
City of El Segundo 1 350 Main St. El Segundo, CA 90245
21
ELSECU\
Public Works
Proposed -Revised Budget Changes
• Personnel / M&O decrease•
➢ Freeze three (3) positions for 12 months: Facilities Systems Mechanic, Engineering
Technician, Inspector
➢ Decrease Vehicle Operating Charge
• Impact to Services:
➢ Reduction in staffing and operations will potentially delay CIP projects; delay the
department's response time to other City needs and to engineering services for
development.
5/21 /2024
City of El Segundo 1 350 Main St. El Segundo, CA 90245
22
ELSEGUNi
Recreation,
Park and Library
Proposed -Revised Budget Changes
• Personnel / M&O decrease:
➢ Freeze Aquatics Manager position for 12 months
➢ Delay various equipment purchases
➢ Pause or cease purchase for Garden Plot project, Stump Cutter, and Library
children's computers
O Impact to Services:
➢ Reduction of Aquatic staffing and planning; delay in Aquatics business plan
development and Plunge Capital Funding Campaign
,;;;-Delay in replacing equipment
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 23
ELSEGUNi
Proposed- Revised FY 2024-25 CIP Projects for All Funds
• Carryover projects in progress or about to begin = $249034,150
• New Projects = $15.137,732
• $3,250,000 Proposed Transportation Funds Appropriations (updated)
• $5,500,000 Proposed Enterprise Funds Appropriations
• $ 991,500 Proposed Special Revenue Funds Appropriations
• $ 400,000 Proposed Stormwater Fund Appropriations
• $4,996,232 Proposed General Fund Appropriations (updated)
$39,171,882 (Total)
ELSEGUPJ
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 24
Proposed -Revised FY 2024-25 General Fund CIP
• (#25) $ 21,232
• (#27) $ 100,000
• (#29) $ 250,000
• (#32) $ 100,000
• (#35) $ 80,000
• (#36) $ 100,000
• (#37) $ 100,000
• (#38) $ 130,000
• (#39) $ 50,000
• (#45) $ 4,000,000
• (#51) $ 65,000
$4,966,232
Library Southwall Waterproofing
EV Charging Station
HVAC (Citywide)
Main Street Banner Poles Replacement (updated)
Fire Alarm Panels (Citywide)
Citywide Misc. Repair
Plumbing (Citywide)
Miscellaneous Electrical (Citywide)
Miscellaneous Equipment (Citywide)
Recreation Park Projects Phase I Reserve
Downtown Beautification
(Total)
ELSEGUNi
5/21 /2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 25
Proposed FY 2024-25 Next Steps
• FY 2024-25 Budget Public Hearing and Adoption (June 4, 2024)
• Beginning of FY 2024-25 (July 1, 2024)
£LSEGUOY i
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 26
Questions
ELSEGUN
5/21/2024 City of El Segundo 1 350 Main St. El Segundo, CA 90245 27