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2026-05-13 CC Agenda Packet SPCAGENDA EL SEGUNDO CITY COUNCIL SPECIAL MEETING WEDNESDAY, MAY 13, 2026 1:00 PM OPEN SESSION CITY COUNCIL CHAMBER 350 MAIN STREET, EL SEGUNDO, CA 90245 Chris Pimentel, Mayor Ryan W. Baldino, Mayor Pro Tern Drew Boyles, Council Member Lance Giroux, Council Member Michelle Keldorf, Council Member Susan Truax, City Clerk Executive Team Darrell George, City Manager Barbara Voss, Deputy City Manager Saul Rodriguez, Police Chief Michael Allen, Community Development Dir. Todd Selby, Interim IT Director Aly Mancini, Recreation, Parks & Library Dir. Mark Hensley, City Attorney Paul Chung, CFO/City Treasurer Ryan Allee, Fire Chief Rebecca Redyk, HR Director Elias Sassoon, Public Works Dir. MISSION STATEMENT: "Provide a great place to live, work, and visit." VISION STATEMENT: "Be a global innovation leader where big ideas take off while maintaining our unique small-town character." 1 Page 1 of 62 The City Council, with certain statutory exceptions, can only act upon properly posted and listed agenda items. Any writings or documents given to a majority of City Council regarding any matter on this agenda that the City received after issuing the agenda packet are available for public inspection in the City Clerk's Office during normal business hours. Such documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the City Council meeting. Unless otherwise noted in the agenda, the public can only comment on City -related business that is within the jurisdiction of the City Council and/or items listed on the agenda during the Public Communications portions of the Meeting. Additionally, members of the public can comment on any Public Hearing item on the agenda during the Public Hearing portion of such item. The time limit for comments is three (3) minutes per person. Those wishing to address the City Council are requested to complete and submit to the City Clerk a "Speaker Card" located at the Council Chamber entrance. You are not required to provide personal information in order to speak, except to the extent necessary for the City Clerk to call upon you, properly record your name in meeting minutes and to provide contact information for later staff follow-up, if appropriate. REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act and Government Code Section 54953(g), the City Council has adopted a reasonable accommodation policy to swiftly resolve accommodation requests. The policy can also be found on the City's website at https.11www.eisepundo.or_g4govemmentldepartments/city-clerk. Please contact the City Clerk's Office at (310) 524-2308 to make an accommodation request or to obtain a copy of the policy. 2 Page 2 of 62 1:00 PM — CONVENE OPEN SESSION — CALL TO ORDER / ROLL CALL PLEDGE OF ALLEGIANCE PUBLIC COMMUNICATIONS — (RELATED TO CITY BUSINESS ONLY — UP TO 3 MINUTE LIMIT PER PERSON, 30 MINUTE LIMIT TOTAL) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications) A. PROCEDURAL MOTIONS Read All Ordinances and Resolutions on the Agenda by Title Only Recommendation - Approval B. STAFF PRESENTATIONS 1. FY 2026-27 Budget Study Session Recommendation - 1. City Council to conduct a Budget Study Session and provide direction as necessary. 2. Alternatively, discuss and take other action related to this item. ADJOURNMENT POSTED: DATE: May 8, 2026 TIME: 11:30 AM BY: Susan Truax, City Clerk 3 Page 3 of 62 . M 0' City Council Agenda Statement E L S E G U N D O Meeting Date: May 13, 2026 Agenda Heading:Staff Presentations Item Number: B.1 TITLE: FY 2026-27 Budget Study Session RECOMMENDATION: 1. City Council to conduct a Budget Study Session and provide direction as necessary. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: Total proposed FY 2026-27 budget appropriations (for all funds) equal $210,532,893 with off -setting estimated revenues and use of reserves. Of these amounts, proposed general fund appropriations equal $108,232,200 with off -setting estimated revenues and use of reserves. All applicable City financial policies are being fully adhered to. BACKGROUND: DISCUSSION: I. Study Session Overview II. Background Items III. Proposed FY 2026-27 Budget A. Overview of Revenues, Expenditures, Fund Balances, 5/10 Year Forecast B. Departmental Budgets C. Capital Improvement Program (CIP) CITY STRATEGIC PLAN COMPLIANCE: Page 4 of 62 FY 2026-27 Budget Study Session May 13, 2026 Page 2 of 2 Goal 5: Champion Economic Development and Fiscal Sustainability Objective 5B: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Liz Lydic, Management Analyst REVIEWED BY: Paul Chung, Chief Financial Officer APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Budget Study Session —May 13, 2026_Council Budget Study Session _PPT_Budget Study Session 2. Final - FY 26-27 Proposed 5 Year CIP Program_2026-5-6 Page 5 of 62 Presentation Agenda 1. Overview of Revenues, Expenditures, Fund Balances, 5/10 Yr. Forecast 2. Departmental Budgets 3. Capital Improvement Program (CIP) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Budget Highlights TY 2026-27 Proposed Budget is balanced" "Departments held the line" "Expenditures rising faster than revenues" 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 2 5/7/2026 Budget Highlights ✓ Diverse revenue stream ✓ Business destination ✓ Location, location, location ✓ AAA Rating ✓ Low debt ✓ POB @ 2.7% ✓ General Fund Reserves @ ✓ Strong reserves City of El Segundo 1 350 Main St. El Segundo, CA 90245 Budget Highlights for FY 2026=27 Proposed Budget 1. Revenues remain flat 2. $3.91VI Unfunded Accrued Liability (UAL) 3. Three (3) labor groups (PIVIA, PSSEA, SPEA) in negotiations 4. The Plunge operational 5. $2.98M (General Fund) Capital projects 6. 5% vacancy rate used for Personnel Budget 7. Looming structural deficit in FY 2027-28 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 FY 2026=27 Proposed Revenues $787421,291 5/7/2026 TOTAL ALL FUNDS REVENUE: $186,653,491 $10852325200 58% City of El Segundo 1 350 Main St. El Segundo, CA 90245 General Fund Non -General Funds I 0 a *Ms ener a I Fund Water Fund .............................. Transportation Funds ................................................ ......... Debt Service POBs 12 13 14 15 16 17 A 0 $105,588,412 56.7% $108,232,200 ..................... 37,223,245. ......... 20.0%: 37,955,546 ................................ 2,646,436 ................................... ..................................... 1.4% ........................... --.- .......... ..... 2,583,291 ....... - - - 117,17 .............................. 9,505,304 . ....................... 5.1% .............. 9,500,206. ............................... 6,214,47d. 3.3%:: 6,482,336 ......... .............. - 5,302,000 2.8%: 3,122,000, ................................ 2,027,142: .............................................. .......................... . .............................. 1,839,480: M ......................... ....... 3,597,350 1.9% 3,628,967.: . ....................... 3,687,030: ................. ........ --- ............................. 2.0%.1 .................... ......................... 3,588,116 ......... .................... 250,000 . ............... 0. 1 %:: ....... 250,000 .................... ; ......... 3,084,987 1.7%:: 2,675,026. ........... .............................................. 1,124,263 : 0.6% 955,006: .............. 5,144,40d. ................. ............... ...... 2.8% . ................... : ................. 5,136,400 ........ ............... : ................ ............... 257,500 . ............ 0. 1 ........ 250,006 ...................... 36,050 0.0% Q .............. -- ........ --- ................................................... 211,000 ................................... 0.1 -- ............... .............................. 175,000. . ....................... 287,414. ............... 0.2% ....................... 280,000. 1.40/( I • 1 Sales & Use Tax _........................................................... 2 :Business License _.......... ............................... . .................................. 3 Transient Occupancy Tax 4 :Property Tax ............... 5 Chevron Tax Reso Agreement ............ .................................................................................... 6 Utility User Tax (UUT) ............................................................... 7 :Charges for Services ................................. 8 Transfers In h Rpvpntjp tup-npral Fend $14,300,000: $14,600,000 $300,000' ............... 2.1 % ................................._................................................................._ 14,000,000 ................................ 14,380,000 380,000 2.7% ..................... 14,772,043 ................................................................................. 15,100,000 327,957 2.2% 14,985,683 15,169,459' 183,776 1.2% 8,339,142 ............... 8,500,000 160,858: ... . 1.9% 9,323,442 9,550,000: 226,558 2.4% _.............................. 7,854,873 ............................. .................... 8,046,861 191,988: .......... 2.4% 0' .................... ...................:.. 27,000 27,000: ................... 100.0°/a 4,460,470 .............. ...................... 4,500,000 39,530 ... 0.9% ............:.................._.......................... 3,381,344 _............. ..............:.......................................... 3,699,864 318,520 ... 9.4 /a ... 150,000 ................................. .................................................................. 225,OOOI 75,000.50.0% .............................................................................................................. 2,965,127: 2,860,219 (104,908) -3.5°/a 10,598,088: 10,899,097 ....... .... 301,009: 2.8°/a 458,200.674,700: . 216,500: 47.3% 12 of 62 $20,000, 000 $18,000, 000 $16,000, 000 $14,000,000 $12,000, 000 $10,000, 000 $8, 000,000 $6, 000,000 $4, 000,000 $2, 000,000 $0 W^6 •l • Top General Fund Tax Revenues Overview FY 2019-20 FY 2020-21 FY 2021-2022 Actuals Actuals Actuals —Property Tax Sales & Use Tax • FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Actuals Actuals Actuals Estimated Proposed Actuals Budget Utility User Tax (UUT) Transient Occupancy Tax Business License 3of6 FY 2026=27 Proposed Appropriations $102 5/7/2026 r 7 r , r , ALL FUNDS APPROPRIATIONS: $2103532, 893 $107, 857, 934 51% City of El Segundo 1 350 Main St. El Segundo, CA 90245 General Fund Non -General Funds 126-27 Annrnnriatinns (All FIJnt ..................................... $104,678,219 47.8% $107,857,934 51.2% ................................................................ 39,449,617: 18.0% __ _ __ _ _................................................... 39,665,630 18.8% ............................... .............................................................. .............................................................. 2,020,037 ................................................... 0.9% ......... 1,516,667 ............... 0.7% ...................................:._.........................................................:_............................................................:....._...................................................... 9,497,648: ................................ ............... 4.3% ... 9,493,200: .................................... 4.5% ................................... 7,962,952 ...............................:..............................................................:..............................................................:..............................................................:.............................................................. 3.6% 9,742,707 4.6% 28,830,349: :............................................ 13.2% :....................... 19,634,934; :.............................................................. 9.3% ............................... ..................:.............................................................. 7,539,900; .......................................................................... __ _.... _.............................................. 3.4% ....................................... 10,043,409 __ _ .__ _ ...... 4.8% ..................... 3,498' 108 1.6% 3' 899' 215 1.9% ............................................................................................. 3,777,967' 1.7% ................................................. 3,655,747` ........ 1.7O/c .. .......................................................... 975,000: ............. 0.4% ..... - .................. --- . — ............ 0.0% 3,135,849 1.4% 2,834,558; 1.3O/c .......................................................................................................................................................................................... 1,381,277: ....................................4,948,394........................................................ 0.6% 1,111,818: .............................183,500.................................................0.1 0.5% %............ 2.3..... ................ ........... __ ___ __ _ ........ 251,617 ...............................:...................................................... 0.1 % ................................................:.......................................... 90,497 0.0O/C 541,606 0.2% 522,120 ............................................................ 346,000 .......... .............. 0.2% ..... ........................ ................................................0.2% 265,000: ............... 0.1 ... 15,621: 0.0% 15,957 0.00/c Page 15 of 62 126-27 Annronhations (General Fund 1 Police $24,867,038 $27,312,638 $2,445,600 2 :Fire 18,231,095: 18,889,939 658,844 .... 3 Transfers Out 12,848,200..........................(2,290,448)............................... ....................................................................................... ..........................................................................................................................15,138,648.......................... 4 :Public Works 9,916,735: 10,184,410 267,675 5 Non -Departmental 7,508,339 7,873,159 364,820 6 :Recreation, Park and Library 11,294,648 12,316,528: 1,021,880 _........................................................................................................... 7 Community Development Department .......................; 3,957,955: ................................. 3,974,294 .......................: 16,339 8 :Information Technology 4,107,350: 4700,938: 593,588 9 .........6 :City Manager 3,140,747: 3,211,93. . 10 :Finance 2,807,702i 2,823,892 11 ............. :Human Resources ................................................................................................................................ ......................................................................................:. 2,059,083: L ................................................... ......................................................... 2,006,029 12 City Attorney 825,000 849,650: _..........:........................ 13 City Clerk ........................... 596,780,635,211 .................... 14 City Council 227,098: 231,110 71,189 38,431 4,012 9.8% 3.6% 2.7% 4.9% 2.3% 0.6% (2.6%) 3.0% 6.4% 1.8% Page 16 of 62 Y 2026=27 Appropriations (General Fund) Grand Total 5/7/2026 Summary of General Fund Appropriations (Excluding Capital Outlay & Transfers Out) FY 2026-27 apposed $89, 539, 570 95, 009, 735 —5, 470,165 City of El Segundo 1 350 Main St. El Segundo, CA 90245 6.1 °L FY 2026=27 Appropriations (General Fund) - Transfers Out • Transfers Out= $12,848,200 �� Debt Service Fund (POB Payments): $9,493,200 i= GF CIP Fund: $2,980,000 )�� Solid Waste Fund: $175,000 (City's subsidy decreasing) ➢ Senior Housing Fund: $200,000 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 FY 2026=27 Full -Time Equivalent (FTE) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Department Adopted Adopted Adopted Proposed Change Personnel Personnel Personnel Personnel Total 374.47 � 378.71 392.24 +13.93 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 I 0 0 nnonpri Ppr-qc 1 Recreation, Parks& Library 148.34 101.74 103.08 114.90 11.82 ................................................................................... 2 Police . ........................ . 87.90 . .................. . .......................... 88.90 ............................ 93.40 95.00 ......... 1.60 3 IFire 53.25 ......... 53.50 ................. 53.50 .............. 53.50 ............. 0.00 .......................... 4 :Public Works 51.50 53.50 53.50 53.50 0.00 ...................................... ......... 5 ommunity Development Department 19.00 F ......... 18.00 ............... 1 8.00 ..................... 0.00 ............................................................................................................................. 6 :Finance . ......................... . ........................................... ................................ 18.50 18.50 ................. ............. .. 17.50 . ....................... 17.50 ................................... 0.00 ......................... ...................................................................................................... 7 ity Manager ........................................................... ............................................ 14.58 13.83 ............................. .................................................. 13.83 14.34 ................................... 0.51 ........ 8 Information Technology 9.50 9.50 9.50 9.50 . ......... 0.00 . ...... . ....... . ....................................... 9 ::Human Resources ............... ...... 7.00 7.00 7.00 7.00 ....... 0.00 .................. 10 'City Council ................. ..................... --- .......................... ................... ............ 5.00 5.00 .......................................... 5.00 5.00 0.00 ............................... -.1.1-1- ................................................................................................................................ 11 ICity Clerk .............. .......................................................................................... 5.00 4.00 4.00 .................................................. 4.00 ................................... 0.00 ......................... 12 :CityAftorney .............. . ............... ................................... 0.00 0.00 .................................................................. 0.00 0.00 . ............. 0.00 Page 20 of 62 FY 2026=27 Reserves • General Fund Reserve: 25% ($26.9M) • Economic Uncertainty Reserve: $2M, • OPEB Reserve: $38.1 M • Pension Trust Reserve: $6.6M • General Fund CIP Reserve: $400k 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Description Proposed Estimated Beginning Unassigned Fund Balance (July 1, 2026) $3738279180 Proposed FY 2026-27 Revenues $108, 232, 200 Proposed FY 2026-27 Appropriations (Net of GF CIP) $(104,877,934) Estimated Ending Fund Balance (June 30, 2027) $4151811446 25% Reserve Requirement (based on proposed recurring appropriations) $26,219,484 $1499619963 Estimated Ending Unassigned Fund Balance (Net of 25% reserve) .............................................................................................................................................................................................................................................................................................................................................................................................................................................. 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 PagW22 of 62 5-Year General Fund Financial Forecast 5/7/2026 $220,000,000 $170,000,000 $120,000,000 $ 70, 000, 000 $ 20, 000, 000 FY 2026- FY 2027- FY 2028- FY 2029- 2030- FY 2031- FY 2032- FY 2033- FY 2034- FY 2035- $ (30,000, 000) 27 28 29 30 32 33 34 35 36 � Revenue -m� Expenditure s FB (D Page 24 of 62 Revenue Options • Sales Tax Measure C, currently at 9.5% ✓ 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') 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 W Flk•rel Fro Cities Sales Tax TOT UUT ElSegundo 9.75% 12% 3.00% Torrance 10.25% 11 % 6.50% Redondo Beach 9.75% 12% 4.75% Manhattan Beach 10.25% 14% NA Hawthorne 10.50% 14% 5.00% Inglewood 10.25% 14% 10.00% Hermosa Beach 9.75% 14% 6.00% Los Angeles 9.75% 14% 4.50% Anaheim 7.75% 15% NA Garden Grove 8.75% 15% NA Page 26 of 62 Proposed FY 2026=27 Enterprise Funds • Water Fund* ➢ $47,237,924 estimated beginning fund balance on 7/1 /2026 ➢ Estimated Revenues = $373955,546 ➢ Proposed Operating Budget = $39,6651630 ➢ Proposed Capital Budget = $2,6001000 • Wastewater Fu nd * ➢ $7,557,231 estimated beginning fund balance on 7/1 /2026 5/7/2026 ➢ Estimated Revenues = $6,482,336 ➢ Proposed Operating Budget = $9,742,707 (Hyperion Cost: $3.3M) ➢ Proposed Capital Budget = $2,600,000 City of El Segundo 1 350 Main St. El Segundo, CA 90245 * Water / Wastewater Rate Study in FY 2026-27 22 Proposed FY 2026=27 Special Revenue Funds • Transportation Funds: $1,516,667 • Public Safety Special Revenue Funds: $2,834,558 • Other Special Revenue Funds: $1,111,818 • Senior Housing Funds: $15,957 Total of all Special Revenue Funds = $5,4799001 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Proposed FY 2026=27 Debt Service Funds • Douglas Street Gap Closure ➢ Funded with Traffic Mitigation Fees ➢ $4,270,801 estimated beginning fund balance on 7/1/2026 ➢ Annual debt service payment of-$507,000 ➢ Final payment: August 1, 2035 Pension Obligations Bonds (POBs) • Funded primarily by the General Fund &minimal amount from Enterprise Funds • $110,926,238 estimated beginning fund balance on 7/1/2026 • Annual payment of $9.7M • FY 2026-27 will be the fifth year of principal payment towards the POB • Final payment is due in June 2040 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Proposed FY 2026=27 Internal Service Funds • Equipment Replacement Fund ➢ $13,209,276 estimated beginning fund balance on 7/1 /2026 ➢ Estimated Revenues = $1,839,480 ➢ Proposed Budget = $10,043,409 • General Liability ➢ ($7,467,238) estimated beginning fund balance on 7/1 /2026 ➢ Estimated Revenues = $3,588,119 ➢ Proposed Budget = $3,655,747 • Workers' Compensation ➢ ($3,838,477) estimated beginning fund balance on 7/1 /2026 ➢ Estimated Revenues = $3,628,967 ➢ Proposed Budget = $3,899,215 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 5/7/2026 Proposed FY 2026=27 Departmental Budgets City of El Segundo 1 350 Main St. El Segundo, CA 90245 Citywide Expenditure Increases • COLA adjustments per MOU • Group Insurance (Medical/Health Premiums) • Unfunded Accrued Liability (UAL) • Standby pay adjustments per MOU changes • Contract Services (CPI) • Electricity • Telephone (Landlines, Internet, Cellphones) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 126-27 Annronhations (General Fund 1 Police $24,867,038 $27,312,638 $2,445,600 2 :Fire 18,231,095: 18,889,939 658,844 .... 3 Transfers Out 12,848,200..........................(2,290,448)............................... ....................................................................................... ..........................................................................................................................15,138,648.......................... 4 :Public Works 9,916,735: 10,184,410 267,675 5 Non -Departmental 7,508,339 7,873,159 364,820 6 :Recreation, Park and Library 11,294,648 12,316,528: 1,021,880 _........................................................................................................... 7 Community Development Department .......................; 3,957,955: ................................. 3,974,294 .......................: 16,339 8 :Information Technology 4,107,350: 4700,938: 593,588 9 .........6 :City Manager 3,140,747: 3,211,93. . 10 :Finance 2,807,702i 2,823,892 11 ............. :Human Resources ................................................................................................................................ ......................................................................................:. 2,059,083: L ................................................... ......................................................... 2,006,029 12 City Attorney 825,000 849,650: _..........:........................ 13 City Clerk ........................... 596,780,635,211 .................... 14 City Council 227,098: 231,110 71,189 38,431 4,012 9.8% 3.6% 2.7% 4.9% 2.3% 0.6% (2.6%) 3.0% 6.4% 1.8% Page 33 of 62 City Council Proposed Budget Changes • Decrease in dues and subscriptions based on FY26 actuals trends (-$2k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 City Attorney Proposed Budget Changes M&a. � •Increase in Legal Counsel (+$19k) and Labor Negotiation (+$15k) • Decrease in Code Enforcement —Legal Counsel (-$1 Ok) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 City Clerk Proposed Budget Changes Personnel - Decrease in full-time salaries and benefits (-$36k) M&O: • Increased election budget due to fiscal year being an election year (+$83k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Budget Year City Manager Total I Personnel I M&O I Positions Expenditures FT/PT Proposed Budget Change.% Personnel: • Increase in part-time Senior Video Technician 1/11 (+$35k) • Decrease professional and technical (Adman) from previous FY staffing assessment contract (-$100k) • Minor increases in Media division offset by decrease for outdated playout automation system software support (-$7k) • Increases in Econ Dev for new Pitchbook database (+$30k); advertising/publishing (+$27k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 32 .. = i nance & Freasury LJUULJCL VI I011LJCZ) Personnel: • Decrease in salaries and benefits (General Fund) with updated allocations residing in General Liability, Worker's Compensation, and Water & Wastewater funds • Fee Study (every five years; City is due for an update in 2027) (+$60k) • iPads for Business License field work (+$600) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Human Resources Pr Personnel: • Decrease in salaries and benefits (General Fund) with updated allocations residing in General Liability and Worker's Compensation funds 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Information Systems Proposed Budget Changes M&O: • Increase in software maintenance (+$535k) ➢ $356k for GASB 87 (Accounting for multi -year software as liability) ➢ $151 k for transfers of software budget to IT from other departments ➢ $28k for CPI 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 35 Community Development Pro M&O: • Decreases with True North / Willdan plan check and inspection (-$145k) • Decrease in equipment replacement charge (-$10k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 36 Police Department Pro Personnel: • Increase in Overtime (unforeseen events) (+$244k), Overtime for reimbursable overtime and for City special events (+$182k) • Add 1.6 FTE cadets (offset by revenues) (+$40k) • Remove one (1) PSO and add one (1) Police Assistant (-$12k) • Reclassify one (1) Executive Assistant to Senior Executive Assistant (+3k) • Reclassify one (1) Administrative Specialist to Senior Administrative Specialist 1/11 (+$7k) Positions: • Add 1.6 FTE cadets 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 37 Police Department Proposed Budget Changes (cont. M&O: Admin Division • New furniture and supplies, utilizing bail/evidence funds (+$87k) M&O: Communications Center Division • SBRPCA Dispatch (split with Fire Department) increase by 6.9%, contract includes charge for new CAD system (+$151 k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 KR 'ire )epartment Personnel: • Increases in overtime due to unplanned leaves, professional development & training, and anticipated retirements (+$139k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 39 Fire Department Proposed Budget Changes (Cont. &O: Suppression Division • Decrease in equipment replacement charge (-$83k) • Annual increase for SBRPCA Dispatch services (+$31 k) • Two (2) mobile radios: one (1) for Engine 33, and one (1) as a backup (+$30k) ): Prevention Division • Decrease in Contract Services for Fire Plan Check (-$50k) • Increase in plan check contractor services (+$12k); Offset by revenues M&O: Emergency Management Division • Decrease in Professional & Technical for position specific training (-$46k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 EK Fire Department Proposed Budget Changes (Cont. AB1646 (Special Revenue Fund) • Chevron Refinery to fund the program • Staff will return to City Council and revise the budget once program is selected 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 41 Public Works Props Positions: • Reclass two (2) Senior Civil Engineers: one (1) Senior Engineer Associate and one (1) Associate Engineer (-$42k) • Remove one (1) Office Specialist and add one (1) Administrative Specialist 1/11 (+$7k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 43 Public Works Proposed Budget Changes (Cont.) M&O: Government Building Division • New janitorial contract (+$91 k) • New contract for Duct HVAC cleaning (+$40k) • Increase utilities (+$10k) and operating supplies (+$25k) to reflect full year of Plunge operations M&O- Street Services Division • Increase Contractual Services for Annual Street Sweeping Contract (+$21 k) M&O: i raffic Safety • Increases to Contractual Services (streetlights maintenance + additional traffic signals) (+$50k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 ecreation, Parks id Library (RPL) Proposed Budget Changes Personnel: • One (1) new FTE, Facilities Maintenance Supervisorfor RPL facilities (+$182k) • Includes increase in Rec Leader, Sr. Rec Leader & Rec Specialist (+$382k) • Includes increase in Lifeguard, Sr. Lifeguard & Swim Instructors (+$256k) Positions: • One (1) new FTE, Facilities Maintenance Supervisorfor RPL facilities 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 45 Recreation, Parks and Library (RPL) Proposed Budget Changes (Cont. M&O: Recreation* • Plunge: Swim classes (+$25k) • Clubhouse: Stage risers (+$20k) • Sports: Pickleball scheduling software (+$18k) • Teen Center: Ski Week (ESUSD) programming (supplies, staffing); reprogramming for months Teen Center is closed (+$6k) • Joslyn: New furniture for Joslyn Center (+$8k) • Special Events (New): Juneteenth (+$lk); Veterans Day, Movies in the Park (+$5k) • Camps: Enhancing Club Cowabunga and Camp L.I.T. (+$15k) *Some expenditures have offsetting revenues 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Recreation, Parks and Library (RPL) Proposed Budget Changes (Cont. M&O: Parks Operations • Increase in landscaping, tree trimming and misc. land care contracts (+$44k) • Decrease in repairs and maintenance (-$35k) M&O: Library • Increase in Book/Other printed materials, eBooks & Blu-ray/DVD (+$6k) • Replacement of book security re -sensitizer machine (+$4k) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Proposed FY 2026=27 Capital Improvement Program (CIP) Goal 4: Develop Quality Infrastructure and Technology Objective: El Segundo's physical infrastructure supports an appealing, safe, and effectiv( community. 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 Highlight: CIP Projects Completed or Soon to Be Completed • Main Street Banner Pole replacement project - $20,000 • Library Elevator Repairs - $270)000 • Aquatics Center Heater Replacement Project - $700,000 • FY 2025-26 Pavement Project - $1,000,000 • FY 2025-26 Concrete Project - $100, 000 • CDBG (ADA Improvements) Project - $129,000 • Fire Station #2 HVAC — $150,000 • EV Charging in City Hall Fleet Parking lot - $100,000 • Plunge - $18.7M approx. (Design +Construction + CM services) 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 CIP Projects: Soon to Be Completed • Urho Saari Swim Stadium / Plunge Renovation Project • Construction completion in May 2026. 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 CIP Projects: In Progress Recreation Parks Projects Phase 1 — Teen Center, Skatepark, and Ballfields • City Council to award May/June 2026 • Construction anticipated to start in September2026. 5/7/2026 Recreation Parks Projects Phase 2 — Repair of Cracks on the Walls & Fence Posts • Construction started in February 2026. To be completed in June 2026. h. City of El Segundo 1 350 Main St. El Segundo, CA 90245 t Ir CIP Projects: In Progress Emergency Operations Center (EOC) Project • In design, ready forbid in June 2026. 5/7/2026 City of El Segundo 1 350 Main St. El 11 Hilltop Reservoir Demolition Project • Construction started in January 2026. To be completed in Summer2026. T771 t a r Proposed FY 2026=27 CIP Projects for All Funds • Carryover projects in progress or about to begin = $1593549934 • New Projects • $13100, 000 • $53200, 000 • $ 965,000 • $ 600, 000 • $21980, 000 5/7/2026 $10,845,000 Proposed Transportation Funds Appropriations Proposed Enterprise Funds Appropriations Proposed Special Revenue Funds Appropriat Proposed Stormwater Fund Appropriations Proposed General Fund Appropriations $26,199,934 (Total) City of El Segundo 1 350 Main St. El Segundo, CA 90245 ■ mmrCIPAC New Projects Score Sheet, FY26-27 # Capital Improvement Project Dept. Total Score 1 Joslyn Center Improvements Recreation 26 2 Roadway Safety and Mobility Improvements PW 22 3 Safe Routes to School PW 21 4 EOC Improvements PW 21 5 EV Charging Stations and EV Infrastructure PW 17 6 Police Department Shooting Range HVAC Improvements PD 17 7 Smoky Hollow Parking PW & CDD 15 8 City Maintenance Yard Roofing Improvements PW 15 9 Public Works Engineering Division Remodel PW 15 10 Library Amphitheater Recreation 14 11 Police Department Security Camera System Upgrade PD 13 12 Police Department Emergency Generator Replacement PD 12 Page 58 of 62 Proposed FY 2026=27 General Fund CIP (#24) $ 100,000 (#35) $ 400,000 (#36) $ 50,000 (#40) $ 750,000 (#45) $ 200,000 (#46) $ 50,000 (#47) $ 200,000 (#48) $ 150,000 (#50) $ 100,000 (#51) $ 130,000 (#52) $ 100,000 (#53) $ 130,000 (#54) $ 120,000 (#58) $ 500,000 5/7/2026 Safe Routes to School (Matching Funds) Library Interior & HVAC Maintenance Library Amphitheater Project Recreation Park Phase IV (Joslyn Center) Police Department Range Ventilation Police Department Generator Police Department Security Cameras Public Works Remodel Citywide Misc. Repair Roofing (Citywide) Plumbing (Citywide) Miscellaneous Electrical (Citywide) Miscellaneous Equipment (Citywide) Projects Reserve (Citywide) City of El Segundo 1 350 Main St. El Segundo, CA 90245 $2,980,000 (Total; JANUARY 22, 2026: Budget Kickoff FEBRUARY- MARCH 2O26: Draft Budget MARCH — APRIL 2026: Departmental and City Manager Budget Meetings May 13, 2026: Fiscal Year 2026-27 Budget Study Session JUNE 2, 2026: Fiscal Year2026-27 Budget Adoption Page 60 of 62 Thank You 5/7/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 City of El Segundo Proposed Five -Year Capital Improvement Program Rev. 5/05/2026 No. 1By Fund and Project Prior Years (Carryover) I FY 2026/27 1 FY 2027/28 1 FY 2028/29 1 FY 2029/30 1 FY 2020/31 Total per project Water Fund 1 Annual Water Main Maintenance $0 $1,500,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $9,500,000 2 Water Facilities Maintenance 0 300,000 1,000,000 1,000,000 1,000,000 1,000,000 $4,300,000 3 Water Division Office and Maintenance Yard Improvements 0 500,000 0 0 0 0 $500,000 4 Green Space conversion of the Abandoned Reservoir 300,000 0 0 0 0 0 $300,000 5 Water Valve Replacements 0 300,000 300,000 300,000 300,000 300,000 $1,500,000 Total Water Fund 300,000 2,600,000 3,300,000 3,300,000 3,300,000 3,300,000 $16,100,000 Wastewater Fund 6 Wastewater Infrastructure Replacement (Annual Program) 01 2,000,0001 1,500,0001 1,500,0001 1,500,0001 1,500,0001 $8,000,000 7 Pump Station Repairs 01 600,0001 01 01 01 0 $600,000 Total Wastewater Fund 01 2,600,0001 1,500,0001 1,500,0001 1,500,0001 1,500,0001 $8,600,000 Transportation Funds (Gas Tax/Prop C/SB 1/Measure R/Measure M) 8 Roadway Rehabilitation (Annual Program) 0 0 1,000,000 1,000,000 1,000,000 1,000,000 $4,000,000 9 Roadway Safety and Mobility Projects 0 500,000 0 0 0 0 $500,000 10 Sidewalk Maintenance Program (Annual Program) 0 200,000 250,000 250,000 250,000 250,000 $1,200,000 11 Smoky Hollow Parking 0 0 0 0 0 0 $0 12 Arena Street Improvements 0 0 100,000 0 0 0 $100,000 13 Safe Routes to School Projects 0 400,000 0 0 0 0 $400,000 14 Local Travel Network (LTN) 925,000 0 0 0 0 0 $925,000 151 Downtown Mobility Improvement Project 01 01 1,000,000 01 0 0 $1,000,000 Total Transportation Funds 925,0001 1,100,0001 2,350,0001 1,250,0001 1,250,000 1,250,000 $8,125,000 Storm Water Fund (Measure W) 16 Imperial HWY Median Improvements Collaborating with LAWA &City of LA 600,000 0 01 01 01 0 $600,000 171 Infiltration projects 0 1 600,000 400,0001 400,0001 400,0001 400,000 $2,200,000 Total Stormwater Fund 600,000 600,000 400,0001 400,0001 400,0001 400,000 $2,800,000 Special Revenue Funds/Other 18 ADA Improvements - CDBG Funds 0 65,000 50,000 50,000 50,000 50,000 $265,000 19 EOC Upgrades (Grant) 322,500 0 0 0 0 0 $322,500 20 Park Vista Senior Improvements (Senior Housing Fund) 0 50,000 0 50,000 50,000 50,000 $200,000 21A Measure A Playground 700,000 500,000 100,000 100,000 100,000 100,000 $1,600,000 22 EV Charging station and EV infrastructure 250,000 350,000 0 0 0 0 $600,000 23 Recreation Park Projects Phase IV (Joslyn Center) (Grant) 0 0 803,000 0 0 0 $803,000 Total Special Revenue Funds/Other 1,272,5001 965,0001 953,0001 200,000 200,000 200,0001 $3,790,500 General Fund 24 Safe Routes to School (Matching Funds) 0 100,000 0 0 0 0 $100,000 25 Smoky Hollow Parking 0 0 900,000 0 0 0 $900,000 26 EOC Upgrades (Matching Funds) 107,500 0 0 0 0 0 $107,500 27 HVAC (Citywide) 0 0 0 0 250,000 250,000 $500,000 28 City Hall Phase 2 HVAC 700,000 0 0 0 0 0 $700,000 29 Citywide Facilities access control 0 0 400,000 400,000 0 0 $800,000 30A Dog Park Hillside Stabilization 300,000 0 0 0 0 0 $300,000 30B Dog Park Fence and Drainage Improvements 200,000 0 0 0 0 0 $200,000 31 Pump station #16 0 0 2,500,000 0 0 0 $2,500,000 32 Pump Station #17, pumps replacement 0 0 0 0 2,500,000 2,500,000 $5,000,000 33 Main Facilities ADA Compliance Projects 1,019,934 0 0 0 0 0 $1,019,934 34 Roofing (Maintenance Yard) 0 0 1,000,000 0 0 0 $1,000,000 35 Library Interior & HVAC Maintenance 0 400,000 800,000 0 0 0 $1,200,000 36 Library Amphitheater Project 0 50,000 200,000 0 0 0 $250,000 37 Recreation Park Projects Phase I Reserve (Teen Center, Ball Fields, Horseshoe area) 8,900,000 0 0 0 0 0 $8,900,000 38 Recreation Park Projects Phase II Reserve (Fence Posts, Walls, Cracks) 300,000 0 0 0 0 0 $300,000 39 Recreation Park Projects Phase III Reserve (Clubhouse) 0 0 750,000 0 8,000,000 5,000,000 $13,750,000 40 Recreation Park Projects Phase IV Reserve (Joslyn Center) 0 750,000 0 0 0 0 $750,000 41 Downtown Beautification / crosswalk pedestrian lighting 0 0 0 0 0 0 $0 42 Finance Office Remodel 150,000 0 0 0 0 0 $150,000 43 HR Office and City Clerk Redesign 0 0 500,000 0 0 0 $500,000 44 Police Department Elevator 300,000 0 0 0 0 0 $300,000 45 Police Department Range Ventilation 0 200,000 0 0 0 0 $200,000 46 Police Department Generator 0 50,000 300,000 0 0 0 $350,000 47 Police Department Security Cameras 0 200,000 0 0 0 0 $200,000 48 Public Works Remodel 0 150,000 0 0 0 0 $150,000 49 Fire Alarm Panels (Citywide) 0 0 0 0 0 0 $0 50 Citywide Misc. Repair 100,000 100,000 100,000 100,000 100,000 100,000 $600,000 51 Roofing (Citywide) 0 130,000 0 0 0 0 $130,000 52 Plumbing (Citywide) 100,000 100,000 100,000 100,000 100,000 100,000 $600,000 53 Miscellaneous Electrical (Citywide) 30,000 130,000 250,000 250,000 250,000 250,000 $1,160,000 54 Miscellaneous Equipment (Citywide) 50,000 120,000 50,000 50,000 50,000 50,000 $370,000 55 Fire Sprinklers (Citywide) 0 0 0 700,000 0 0 $700,000 56 Playground Equipment Replacement 0 0 300,000 300,000 300,000 300,000 $1,200,000 57 Playground Equipment Reserve 0 0 300,000 300,000 300,000 300,000 $1,200,000 58 Citywide Projects Reserve 01 500,000 500,000 500,000 500,000 500,000 $2,500,000 Total General Fund 12,257,434 1 2,980,000 8,950,000 2,700,000 12,350,000 9,350,000 $48,587,434 TOTAL CIP (58 Projects) 1 $15,354,934 1 $10,845,000 1 $17,453,000 1 $9,350,000 1 $19,000,000 1 $16,000,000 $88,002,934 Page 62 of 62