2025-06-03 CC Agenda Packet - ITEM C11 - Proposed FY 2025-26 Annual Operating and CIP BudgetCITY OF
ELSEGUNDO
Public Hearing &Adoption
of the
Proposed Fiscal Year 2025-26
Annual Operating & CIP Budget
June 3, 2025
Presentation Agenda
1. Changes from Budget Study Session
2. Overview of Revenues, Expenditures, Fund Balance, and 5 Year Forecast
3. Capital Improvement Program (CIP)
;��Ii1 ,1eJ4�H
City of El Segundo 1 350 Main St. El Segundo, CA 90245
3
t i .i GONDO
-I,-
ELSEGUNDO
5/28/2025 City of El Segundo 1350 Main St. El Segundo, CA 90245 4
Updates to FY 2025-26 Budget Book
✓ Department narratives & Org Chart
✓ El Segundo Demographics
✓ El Segundo History
✓ GANN Appropriations Limit
✓ KPI's
✓ Other jurisdiction comparables
5/28/2025
City of El Segundo 1 350 Main St. El Segundo, CA 90245
5
E SEGUYDO
El Segundo Budgetary Strengths
✓ Diverse revenue stream
s=,_x_' ✓ Location, location, location
✓ AAA Rating
\� ✓ Low debt
✓ POB @ 2.7%
✓ General Fund Reserves @ 25%
Strong - - -
%rrrrr...■
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 6 N DO
Budget Highlights for FY 2025-26
1. Revenues remain flat
2. Additional police officers previously approved by City Council
3. $2.91VI Unfunded Accrued Liability (UAL)
4. POA MOU expires June 2025
5. Plunge Construction & Operations (6 months)
6. $5.21VI (General Fund) Capital projects
7. Public Safety Overtime budget
8. 5% vacancy rate used for Personnel Budget
9. Potential structural deficit starting FY 2027-28
ELSEGUNDO
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 7
Changes from Budget Study Session to Budget Proposal
Total Changes
SLSEGUVllO
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 8
FY 2025-26 Proposed Full -Time Equivalent (FTE)
FY 2024-26
Proposed Personnel
(Study Session)
FY 2025-26
Proposed Personnel
FTE Change
Total FTE 378.71 378.31 -0.4
ILSBGUN DO
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 9
FY 2025-26 Proposed Revenues
$104,573,049
56.5%
5/28/2025
TOTAL ALL FUNDS REVENUES:
$185,171,641
$80,598,592
City of El Segundo 1 350 Main St. El Segundo, CA 90245
Non -General Funds
General Fund
10
FY 2025-26 Proposed Appropriations
$104,678,219
47.8%
5/28/2025
TOTAL ALL FUNDS APPROPRIATIONS:
$218,850,160
$114,171,941
52.2%
City of El Segundo 1 350 Main St. El Segundo, CA 90245
Non -General Funds
General Fund
13
LL CGL \UU
1
General Fund
$97,472,672
46.2%
$104,678,219
47.8%
2
Water Fund
39,315,822
18.6%
39,449.617
18.0%
3
Transportation Funds
3,957,036
1.9%
2,020,037
0.9%
4
Debt Service POBs
9,500,314
4.5%
..... ..... .
9,497,649.
4.3%
5
Wastewater Fund
7,837,440
3.7%
7,962,952
3.6%
6
:General Fund CIP + DIF
30,112,501
14.3%
28,830,349.
13.2%
7
Equip. Replcmt. Fund
9,674,613
4.6%
7,539,900
3.4%
8
Workers Comp. Fund
3,418,321
1.6%
3,498,108
1.6%
9
General Liability Fund
3,769,563
1.8%
3,777,967
1.7%
10
Dev. Services Trust
800,000
0.4%
975,000
0.4%
11
Public Safety Spcl. Rev.
2,541,360
1.2%
3,135,840
1.4%
12
Other Special Rev.
1,253,035
0.6%
1,381,277
0.6%
13
Rec & Econ Dev Trust
136,000
0.1 %
4,948,394
2.3%
14
:Cultural Dev. Trust Fund
272,604
0.1 %
251,617
0.1 %
15
Debt Service Fund
542,851
0.3%
541,606
0.2%
16
Solid Waste Fund
330,000
0.2°/'
346,000
0.2%
17
Senior Housing Fund
16,295
0.001
15,621
0.0%
Proposed FY 2025-26 General Fund
General Fund
Revenues
$104,573,049
General Fund
Expenditures
$104,678,219
ELSEGVNDO
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 16
FY 2025-26 Proposed Appropriations (General Fund)
Summary of General Fund Appropriations (Excluding
* UAL payment of $2.9M
5/28/2025
City of El Segundo 1 350 Main St. El Segundo, CA 90245
17
ELSEGUNAG
FY 2025-26 Proposed Appropriations (General Fund) —
Transfers Out
• Transfers Out = $15,138,648
➢ Debt Service Fund (POB Payments): $9,497,648
GF CIP Fund: $5,230,000
➢ Solid Waste Fund: $211,000
➢ Senior Housing Fund: $200,000
ELSECUNDtl
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 18
Description
Estimated Beginning Unassigned Fund Balance on July 1, 2025
Proposed FY 2025-26 Revenues
Proposed FY 2025-26 Appropriations (Net of GF CIP)
Estimated Ending Fund Balance (June 30, 2026)-
25% Reserve Requirement (based on proposed recurring appropriations)
Estimated Ending Unassigned Fund Balance after meeting 25% reserve
Proposed
$33,053,905
$104,573,049
$(99,448,219)
$38,178,735
$24,862;055
$13,316,680
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245
19
$150,000,000
$130,000,000
$110,000,000
$90,000,000
$70,000,000
$50,000,000
$30,000,000
$10,000,000
$(10,000,000)
$(30,000,000)
FY 2025-26
— - a
FY 2026-27
� Revenue
FY 2027-28
Expenditure . FB
Revenue Options
• Sales Tax Measure C, currently at 9.75%
✓ 0.75% increase: additional $91VI annually
Transient Occupancy Tax rate (TOT), currently at 12%
✓ 1 % increase: additional $1 M annually
• Utility Users Tax, currently at 3%
✓ 1 % increase: additional $500k-$1 M annually
• Chevron TRA (agreement expires Sept 27')
ELSEGUNDG
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 21
FY 2025=26 Reserves
• General Fund Reserve: 25% ($24.9M)
• Economic Uncertainty Reserve: 2M
• OPEB Reserve: $36.7M
• Pension Trust Reserve: $6.3M
• General Fund CIP Reserve: 400k
ELSEGUNDO
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 22
Proposed FY 2025-26 CIP Projects for All Funds
• Carryover projects in progress or about to begin = $14,316,666
• New Projects = $14,455,000
• $2,125,000 Proposed Transportation Funds Appropriations
• $5,800,000 Proposed Enterprise Funds Appropriations
• $ 500,000 Proposed Special Revenue Funds Appropriations
• $ 800,000 Proposed Stormwater Fund Appropriations
• $5,230,000 Proposed General Fund Appropriations
$28,771,666 (Total)
ELSECUNDO
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 23
Proposed FY 2025-26 General Fund CIP
(#25)
$
250,000
(#27A)
$
300,000
(#27B)
$
200,000
(#32)
$
100,000
(#33)
$
100,000
(#34)
$
130,000
(#35)
$
50,000
(#37)
$
250,000
(#41)
$
1,000,000
(#42)
$
1,000,000
(#43)
$
1,200,000
(#49)
$
200,000
(#50)
$
150,000
(#52)
$
300,000
$5,2305000
5/28/2025
HVAC (Citywide)
Dog Park Hillside Stabilization
Dog Park Fence and Drainage Improvements
Citywide Misc. Repair
Plumbing (Citywide)
Miscellaneous Electrical (Citywide)
Miscellaneous Equipment (Citywide)
Main Facilities ADA Compliance Projects
The Plunge Rehabilitation
Recreation Park Projects Phase I Reserve
Recreation Park Projects Phase II Reserve
Downtown Beautification
Finance Office remodel
Police Department Elevator
(Total)
City of El Segundo 1 350 Main St. El Segundo, CA 90245
24
ELSEGUNDO
Recommended Actions:
Adopt resolution approving the proposed FY 2025-26
Citywide operating budget, capital improvement program
budget, various financial policies, and Gann
a p pro pna tions limit.
EL,SEGUNDp
5/28/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 25
Questions
5/28/2025
City of El Segundo 1 350 Main St. El Segundo, CA 90245
9.1
ELSGGUNDO