2026-02-17 CC Agenda Packet - ITEM D08 - FY 2025-26 Second Quarter Financial ReportCITY OF
ELSEGUNDO
FY 2025=26
- Second Quarter
Financial Report
& Mid -Year
Adjustment
Requests
February 17, 2026
City of El Segundo 1 350 Main St El Segundo, CA 90245
1. FY 2025-26 Second Quarter (Q2) -Financial Report
2. FY 2025-26 Mid -Year Adjustment Requests
I Staff Recommendations
4. Next Steps
z
California Society of Municipal
Finance Officers
Certificate ojAaurd
Operating Budget Excellence Award
Fiscal Year 2025-2026
Presented to the
City of El Segundo
For meeting the criteria established to achieve a CSMFO Award in Budgeting.
,n V Vt• February5, 2026
40 ��K i
. nlfn .aleman lnmr. Ro adl-Fired Chnir
202S CSMFO President Recognition Commiaee
Dedicated to Excellence In Municipal Financial Reporting
FY 2025-26 Q2 - Financial Report
4
• General Fund had realized $29.5M or 28% current year
revenues versus $28.5M or 30% prior year
• The big 5 revenues sources will be monitored closely in the
remainder of the fiscal year
• Q3 & Q4 Financial Report will provide better financial
picture
9
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000, 000
$0
Q2 General Fund Revenues Actuals: $29,526,607
'Pox
�
,'dam
^
J�
y
�
d�. NET Ui• i
r
N
I I
......................... ....................... ............................. . ............ .......... I........ ................................ .............. ........................ ... .........................
6
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
IN
-:.
- L il
SALES & USE TAX
Top 5 Revenue Q2 FY26 & Q2 FY25
L l �
BUSINESS LICENSE TRANSIENT OCCUPANCY
TAX
0 Q2 FY26 Q2 FY25
PROPERTY TAX
UTILITY USER TAX (UUT)
7
Fiscal Year 2025-26
Revised Full Year Actual Revenues Variance in .. age
Revenue Source Budget Received Through Budget to Actuals Received
1 Sales & Use Tax $16,804,178 $4,508,581 ($12,295,597) 27%
2
Blisiness License
3
Transient Occupancy Tax
14,800,000
5,193,183
(9 606 817)
35%
4
PrI.:,pe[ty Tax
14,037.384
4,801,0.12
(9,236,842)
34%
5
Chevron Tax Reso Agreement
6,100,000
0
(6,100,000)
0%
6
Utility llsrr Ta>: i UUT)
11,093:769
. ,039,1 r 3
(8,054,596)
27`,;,
7
Charges for Services
5,900,748
2,545,419
(3 355 328)
43%
8
Transftm lin
84,280
(4.670,714)
2�Xil
9
Franchise Tax
5,200,000
48,596
(5,151,404)
0.9%
10
Other Revenues
2.875.178
2,711,993
(163,185)
94�;
11
Intergovernmental
355,000
31,397
(323,603)
90/
12
License & PIII
kum�-o
88"r .'a78
(1,441,022)
38%
13
Interest & Rental Income
5,886,646
2,435,146
(3,451 500)
41%
�- �-
.................... .................... .............. .............. .. .............. ................................................................. ........................................................ ................. I .............
0
Fiscal Year 2025-26
Name
RevisedFund
..-
- ..
.
,
1
General Fund
$104,573,049
$29,526,607
($75,046,442)
28%
3
Transportation Funds
2,646,436
1,744,284
(902,152)
66%
4
Deba
1,419,16c�
^ � °
' ;J
5
Wastewater Fund
6,214,470
2,912,544
(3,301,926)
47%
6
General Fund CIP
-
7
9.887
100.2%
7
Equip. Replacement Fund
2,027,142
2,027,142
0
100%
8
Workers Comp. Fund
� 0.621
G
2 8!o
9
General Liability Fund
3,687,030
3,682,029
(5,001)
100%
to
_.
2150,000
113,582
(136,418)
45%
11
Public Safety Special Rev.
3,084,987
470,263
(2,614,724)
15%
12
Other Special Rem,
1.124,263
$70,,
(144,400)
87%
13
Rec & Econ Dev Trust Fund
5,144,400
94,819
(5,049,581)
2%
14
Cultural Dev(-;!lopment Fund
257,500
82,722
(174,778)
32,1%
15
Debt Service Fund
36,050
36,556
506
101 %
16
SOU
21 1,000
211,000
0
17
Senior Housing Fund
287,414
223,991
(63,423)
78%
Total
$185,171,641
i
9
• General Fund has expended $46.4M or 44% current year
versus $46M or 47% prior year
• Encumbered amounts (those earmarked with specific
vendors for projects or services) are not included in
expenditures to date, but will be reflected as the actual
costs are expended in future quarterly reports
• O&M costs are on pace with budget
10
Q2 General Fund Expenditures Actuals: $46,566,143
$13,000,000
$12,000, 000
$11, 000,000
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2
0 � � —
�G Qi Qi Q
y�/P y�o
11
1
Expenditure Source
Police
Fiscal Year 2025-26
Revised Full Year Appropriations
Budget Expended
$24,867,038
Actual
$13,012,480
Variance in
Dollar -
Budget to
($11,854,558)
Percentage
Expended*
52%
2
3
Fire
Transfers Out
15,138,648
--
- ,
9,664,634)
7,023,639
(8,115,009)
46%
4
Public Works
qr
9.962,675
� 83
(6,286,292)
3i Uj
5
Non -departmental
7,508,339
3,106,116
(4,402,224)
41%
6
RecrDation. Parks & Library
11,294,648
4,777,393
(6,517,255)
42%
7
Community Development
3,957,955
1,479,439
(2,478,517)
37%
8
Information Technology
4,177.660
1,511,021
(2,666,639)
360/�
9
City Manager
3,175,547
1,207,587
(1,967,959)
38%
10
,
2,807.702
1,076,567
1,731.135)
11
Human Resources
2,059,083
500,083
(1,559,000)
24%
12
41
City Clerk
825,000
596,030
226,122
188,702
(598,87
(407 327)
32%
13
14
ExpendituresTotal General Fund
*Does not include encumbrances
_
0- .0
81,9!55
(145,143)
M..... .......... ........ .......... ......__....__..................................... .................. ........... ................. ...... .............. ............... .... ........... ........... ....................................................
11
1
Name
General Fund
Fiscal Year 2025-26
Revised Full Year Actual
Budget
$104,960,713
ExpendituresFund
to Date*
$46,575,513
Dollar
($58,385,200)
.-
Expended*
44%
3
Fund
Transportation Funds
"P9
2,041,806
307,446
1,106,474)
(1,734,360)
15%
debt Service POBs
Wastewater Fund
9,497,648
8,053,698
4,444,951
(27,827)
(3,608,746)
55%
5
.6
mineral Fund CIP
_ 23,270,210
5,466,572
(17,803,638)
INIOMW
7
Equip. Replacement Fund
8,146,058
650,583
(7,495,475)
8%
8
11`Joj,Kefs Comp. PUM
3,498,108
2,493,617
-AAj
9
General Liability Fund
3,777,967
2,469,734
(1,308,233)
65%
10
Dev. S ces 1 h-MA:
Oft,000
72,412
7%
11
Public Safety Special Rev.
3,130,849
709,235
(2,421,614)
23%
12
rather Special
2,635,887
136,51-1
13
Rec & Econ Dev Trust Fund
4,948,394
(4,958,779)
0%
14
CHItulal Dev. Trust Fund
378,117
146,248
).
(83,172)
85%
15
Debt Service Fund
541,606
458,433
16
Solid kj%laste Fund
346,000
104,245
j.
17 Senior Housing Fund
Total
*Does not include encumbrances
53,621
0•
12,241
(41,379)
23%
:.
12
Description
Estimated
Beginning Unassigned Fund Balance on July 1, 2025 (unaudited)
$35,858,323
Estimated FY 2025-26 Revenues
$102,573,049
Estimated FY 2025-26 Expenditures
Estimated Ending Fund Balance (June 30, 2026)
$35,470,659
25% Reserve Requirement
$269240,178
Estimated Available Unassigned Reserve
$7,230,481
14
FY 2025-26 Mid -Year Adjustment Requests
15
• Revenues &Expenditure changes less than 1 % of adopted
budget
Revenue adjustment:-$1,650,000 (General Fund)
o Expenditure adjustment: $522,000 (General Fund)
$ 40,000 (Non -General Funds)
Net Change in budget:-$1,128,000 (General Fund)
-$1,088,000 (All Funds)
16
1
Revised Budget
ChangesFund Name Revised Budget Recommended Recommended % Increase
Additions
General Fund $104,573,04-$1,650,00 $102,923,04
2
ater Fund
37,223,24
37,223,24
3
7ransportation Funds
Debt Servia M t
2,646,43
C
2,646,43
0%
4
i,3*304
6,214,470
9,505,36__
6,214,47
0%
5 l
astewater Fund
General Fund CIP
Equip. Replacement Fund
WorkersComp. Fund
6
5,302,00
; 02,00
0%
7
2,027,142
d
2,027,142,0%
8
3,597,35
3,687,030
C
597,35
3,687,03C
00/
00
9
6eneral Liability Fund
Dev. ;m'*Tt
10
250,000
250,00
0%
11
Public Safety Special Rev.
3,084,987
C
3,084,98
0%
12
Other Special Rev.
1,124,26
1,124,26
0%
13
Rec & Econ Dev Trust Fund
5,144,40
C
5,144,40
0%
14
ult ,,. .�-. - Fund
257,50
257,50
0%
15
Debt Service Fund
36,05C
C
36,05
0%
16
Polid Waste Fund
j 211,00
0°1
17
enior Housing Fund
Total.4
287,411
287,41
.4
0%
_....._.__._ ..................... ._ __ __ _....._ _......_.._..............................................
............
._.............................................................................................._.
17
Revised Budget
ChangesExpenditure Source Revised Budget Recommended Recommended % Increase
Additions
1 eneral Fund $104,960,71 $522,0001 $105,482,713 0.50%
2 ater F - - 40,519.41 0.00%
3
Transportation Funds
2,041.80
2,041,806
0.00%
4.
Debt Serfts
0.40?,648
1,407,648
0.00%
0.00%
5
Wastewater Fund
8,053,698
0
8,053,69
6
General Fund CIP
23,270,210
.�
23,270,21
0.00%
7
Equip. Replacement Fund
8,146,058
40.000
8,186,05
0.49%
8 lNorkers
Q4". ,Fur.j4,
3,498,108
;.. 10
0.00%
9
General Liability Fund
3,777,967
975,000
0
3,777,96T
0.00%
0.00%
0.00%
0.00%
10
Dev. Services Trust
975,000
11
Public Safety Special Rev
ther Special Rev. — - - - — _
3,130,849
0
3,130,849
- 2,635,887
12
. 'a; .
- - —
13 Rec & Econ Dev Trust Fund
4,948,394
378,117
0
0
4,948,39
1 0.00%
14
CuUW DO.TW Fund
378,117
0.00%
15
16
Debt Service Fund
Solid VfWe Fund
541,606 C
541,606
0.00%
3-0,000
4
346,OOC
0.00%
17
Senior Housing Fund
Total
53,621
09i0i
53,6211 0.00%
$217,337,097i
W]
..........
Department / Request (Expenditures)
Amount
Community Development: True North and Willdan contract increases
$500,000
Finance/Non-Departmental: Reclassify Management Analyst
$11,000
Public Works: Pool filter and Locker Room remodel at ESAQ
$401000
City Manager: Reclassify Special Projects Administrator
$11,000
Total Mid -Year Adjustment Request (Expenditures):
$562,000
Department / Request (Revenue)
Amount
Community Development: Revenue offset for plan check fees to be received
$350,000
Finance: Reduce Sales & Use Tax
-$2,000,000
Total Mid -Year Adjustment Request (Revenue):
-$19650,000
19
Community Development:
O&M - True North contract increase
Total Expenditure: $500,000
Total Revenue: $350,000 (Plan Check Fees)
ME
Finance/Non-Departmental:
Sales & Use
Tax —
Reduce budget by
$2,000,000 based on anticipated
performance
of this
revenue category
by fiscal year-end
Primary Reason for decrease: Loss of Insight Direct USA, Inc.
• Total Revenue:-$2,000,000
Salaries & Benefits — Appropriation of $11,000 to reclassify current
Management Analyst position to Senior Management Analyst (no change to
FTE count)
• Total Expenditure: $11,000
21
City Manager:
Salaries & Benefits — Appropriation of $11,000 to reclassify current Special
Projects Administrator position to Senior Management Analyst (no change to
FTE count)
• Total Expenditure: $11,000
22
Public Works:
O&M — Pool filter and locker room remodel at Wiseburn Aquatic Center.
Total Expenditure: $40,000
23
1. Approve to amend the FY 2025-26 Budget to reflect the revised year-end
revenue estimates and year-end expenditures, which were noted in the Mid -
Year Budget and Second Quarter Fiscal Year 2025-26 Financial Report.
2. Receive and File the Second Quarter Fiscal Year 2025-26 Financial Report.
I Approve to reclassify one (1) Management Analyst position to Senior
Management Analyst in the Finance department; and to reclassify one (1)
Special Projects Administrator position to Senior Management Analyst in the
City Manager's office.
24
Proposed Fiscal Year 2026-27 Budget Calendar:
• Master Fee Schedule to be updated by CPI-U (April 2026)
• Budget Study Session (May 13, 2026)
• Public Hearing and Adoption for the Budget (June 2, 2026)
• Beginning of FY 2026-27 (July 1, 2026)
25