2026-06-02 CC Agenda Packet - ITEM C12 - FY27 Budget Public HearingCITY OF
EL E GUNDO
Public Hearing &Adoption
of the
Fiscal Year 2026-27
Annual Operating & CIP Budget
June 2. 2026
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 Year 2026-27
Budget Adoption
Presentation Agenda
1. Overview of Revenues, Expenditures, Fund Balances,
5/10 Yr. Forecast
2. Capital Improvement Program (CIP)
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 3
CSMFO Budget Award - from Meritorious to Excellence
California
Society
Finance
Of
Certificate of Awaj
Operating
Budget Exci
Fiscal
Year 202
Presented to the
GO,
of El Sep
For meeting the criteria
established to achieve a t
February 5, 202E
t
J
Wakeman
nifer
2025 CSMFO
President
Dedicated
to Excellence in Mai
6/1 /2026
City of El Segundo 1 350 Main St. El Segundo, CA 90245
rd
F:LSEGt D0
Budget Highlights
TY 2026-27 Proposed Budget is balanced"
"Departments held the line"
"Expenditures rising faster than revenues"
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 5
Budget Highlights for FY 2026=27 Proposed Budget
1. Revenues remain flat
2. $3.91VI Unfunded Accrued Liability (UAL)
3. One (1) labor group (PIVIA) in negotiations
4. The Plunge operational
5. $3.81VI (General Fund) Capital projects
6. 5% vacancy rate used for Personnel Budget in most departments
7. $21VI Economic Uncertainty Fund Reserve transferred to General Fund
Reserves
8. Looming structural deficit in FY 2027-28
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 6
Changes from Budget Study Session to Budget Adoption
➢ Cultural Arts Program ($315,760)
➢ CIP: add Smoky Hollow Parking ($900,000); Smoky Hollow
Paving (SB-1 Funds) ($450,000); Revise PW Remodel ($70,000);
➢ Economic Uncertainty Transfer to GF ($2M)
➢ PD: Flock DFR (Drones as First Responder Program) Budget
move from GF to C.O.P.S. Fund ($99k)
➢ Fire: Overtime (decrease of $332k)
6/1 /2026
City of El Segundo 1 350 Main St. El Segundo, CA 90245
7
I I I (.1 N I)()
Outstanding Items
➢ City's Legislative and Community Affairs
Serve as a liaison and City advocate to major industrial, regional, and governmental entities, including Los
Angeles International Airport, Hyperion Water Reclamation Plant, Chevron, and other local, County, State and
Federal partners. Collaborate and advocate on behalf of the City on projects, initiatives, regulatory matters,
and issues.
✓ Option 1: Establish Full-time Position
❑ Senior ManagementAnalyst(or Equivalent): Lead legislative affairs, intergovernmental relations, stakeholder
engagement, and advocacy support efforts.
❑ Could be the reprogramming of an existing vacant Senior Management Analyst position.
❑ Fiscal Impact: 165 000 Approx.
✓ Option 2: Retain Consultant Services (Part -Time Retainer)
❑ Strategic public affairs and government relations advisor and stakeholderengagement consultant.
❑ Fiscal Impact: 120 000 Approx.
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 8
Outstanding Items (cont.)
➢ Public Safety comprehensive analysis of OT (Finance Committee)
✓ Practices, policies, scheduling, actual hours and dollars
➢ Telephone Budget Analysis (Finance Committee)
✓ Review landl i nes, i nternet, and cell phones.
➢ AB 1646:
✓Chevron Emergency Alerting System
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 9
FY 2026=27 Proposed Revenues
$79,0857291
TOTAL ALL FUNDS REVENUE:
$189317,491
;11072327200
58%
r ■ General Fund
■ Non -General Funds
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 10
1 General Fund
_.............................................................
2 Water Fund
...................:..................................................................................
3 Transportation Funds
4 :Debt Service POBs
5 Wastewater Fund
...........:..................................................................................
6 :General Fund CIP
......................................................................................................
7 ;Equipment Replacement Fund
8 Workers Compensation Fund
.........................................
9 :General Liability Fund
...................:..................................................................................
10 Dev. Services Trust
.................... .................................................................... _............
11 :Public Safety Special Rev
..... ................... .........
12 :Other Special Rev.
13 Rec & Econ Dev Trust Funds
......................................................................................................
14 Cultural Dev. Trust Fund
......................................................................................................
15 :Debt Service Fund
......................................................................................................
16 :Solid Waste Fund
....................................................................
17 Senior Housina Fund
-oposecl ftevenues
(All Funcis)
,.2026-27
Estimated Actuals Estimated
Actuals
Proposed Budget Proposed
Budge
$105,588,412
56.7%
$110,232,20
58.20/
37,223,245
:..............................................................
.........................................
20.0%
..........
37,955,54C
..................
20.0°/
.......... ..............................................
2,646,436
.....:......................................................:...................
1.4%
2,583,224
..........................
1.4°/
9,505,304.
5.1 %
9,500,200
5.0°/
........................................................ :....
6,214,47q ......................................3.3%...........................
.........................................................................
6,482,33E
................................................_............
...
3.4°/
5,302,000
2.8%
3,942,000
2.1 °/
.........................................................................................................................................................................
2,027,142�
1.1 %
......................................
1,839,48E
1.00/
3,597,350
1.9%
3,628,967
1.90/
.................................
3,687,030
........................ _............................................. ....................................................
............
2.0% .......................................................
................................._............
3,588,119 ..............................................
. .........
1.90/
250,000
0.1 %
250,000
0.1 °/
.......... .... .......................................... ......................................................
..........�..................................3,084,987�......................................1.7%...........................
:....................................................................................................
2,675,020.................................1.4°/
1,124,263
0.6%
955,000
0.50/
.......... ......................................................... .......... ................................................
5,144,40
.......... :..................................................................................................................
:
2.8% ......................................................................................................
....................... ..............
5,136,400
............
2.70/
257,506.
0.1 %
94,000
0.050/
36,056
.................................................................................................................................................................................................................................
0.00/0
0
0.00/
211,000
0.1 %
175,000
0.1 °/
...............
287,41
0.20/a
..................................................
280,000.
0.1 °/
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
9 :Franchise Tax
...............:...............................................................................
10 :Other Revenues
11 Intergovernme ntal
12 :License & Permits
...............:................................................ ...............................
13 Interest & Rental Income
14 :Fines & Forfeitures
$14,300,000
.........................................................................................:.......................................................................
$14,600,000
14,000,000
14,380,000
........ ............. :............................................................... ................ .....................................
14,772,043
...... :....
15,100,000
14,985,683
15,169,459
8,339,142
...............................................................:....
8,500,000
9,323,442
9,550,000.
7,854,873
8,046,861
2,027,00a
4,460,47
4,500,000
.......................
3,381,34
:........ .......................................................... .....................................................................
3,699,864
150,000
225,000
2,965,127
....................... :................................................................. :.................................................................
2,860,219
....
10,598,088
10,899,097
458,200
674,700
$300,000.
2.1
.........................................................................................................
380,000
2.70/c
3271957
2.2
....... ..................
183,776
......... ..
1.20/c
160,850
1.9 /C
................................................... _ ____
226,558
.......
2.4%
................... ..
191,98�
..._._ _ _ .
2 4%
2,027,000
100.00/c
39,53
0.9%
318,520
9.40/c
75,000
50.00/(
(104,908)
.........................................................................................................
(0.04;
301,009
..................................
2.8
................
216,500
47.3%
$10
FY 2026=27 Proposed Appropriations
►85,859
TOTAL ALL FUNDS APPROPRIATIONS:
$21495569081
General Fund
Non -General Funds
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 13
326-27 Pronosed Annronhations (All Fund
1
;General Fund
$107,857,9341 51.2 /off
$108,385,85
50.5 ,
`.
2
Water Fund
.................................................
39,665,630 18.8%
......................................
39,665,630
18.5c
3
..............................................................................................................................................................................................................................................................................................
.............. .....
Transportation Funds
.........
1,516,66 0.7%
............................................_..........
1,516,661.
...................,.................................................
0.7c
4
:Debt Service POBs
9,493,200 4.5%
9,493,206.
4.4c
5
.............................................................................
Wastewater Fund
9,742,-1 4.6%
.......................................
9 742 707
4.5`,
................................_.....
6
:General Fund CIP + DIF
....................................................................
19,634,934' 9.3%
..................................,.....................................................................................
20,904,934
9.7c,
7
:Equip. Replcmt. Fund
.......
.... 10,043,409', 4.8%
10,043,405
.......:...................................................
4.7�
8
...................
.............. .....
Workers Comp. Fund
.......................................................................................................:............
_ _ _........ :................................................................................................................
3,899,215 1.9 /0
_................................ ............:...................................................... .........................................................................................................................
3,899,21 5
1.8 ,
9
..............................................................................
:General Liability Fund
3,655,747
1.7%
............
3,655,747
............................................_:................
1.7c,
...............
10
Dev. Services Trust
0 0.0 /0
0
0.0c,
...................
11
...................................................................................................
Public Safety Spcl. Rev.
...............................................................:....................................................................................................................................................................
2,834,558 1.3%
2,834,55........................................ ...................................._........
12
:Other Special Rev.
1,111,818 0.5%
1,111,818
0.5c
...................:.................................................................................................................................................................................................................................:...................................................................:....................................................
13
...................................
;Rec & Econ Dev Trust..............................................1............................................183,500..........................................0.1
............
........
%
183 506
......... .............................
0.1 �
........................
14
Cultural Dev. Trust Fund
90,497 0.1 %
315,760
0.1 C
1.5......:Debt
...................
Service Fund ....................................................
:........................................................................................................................................................................
....
522,.12..:..........................................0.2°/a..............................
....................................................... .................................................................................................................
522,.1.20.....................................0.2c,
.......
16
_............................................................
:Solid Waste Fund
265,000 0.1 %
.................. .................
265,000.
...............................
0.1 C
17
:Senior Housing Fund
15,957: 0.0 %a
15.957
0.0c,
18
Economic Uncertainty
0'. 0.0%
2,000,000
0.9`,
I YJ I*VArA :rZo =so
0
I Annrnnriatic
$27,312,638::
$27,213,563.
p
($99,075)
(0.4%
..................... - - -
18,889,939.
. .............................. .....................................................
18,696,939.
.......
(193,000)
. ................................ ....................................................
(0.01
12,848,200::
................................. .....................................................
13,668,200::
........
820,000
....... ....................................................
6.40/
10,184,410::
......................................................
10,184,410
0
0.00/
........ . ..........
..............
7,873,159i:
........................... .............................................................................................................
.............................
7,873,159:
-- ................
0
....................................................
0.0%
12,316,528::
................................. .....................................................
12,316,528::
......................................................
0
....................................................
0.00/
3,974,294
............... ........ .....................................................
3,974,294.
................
0.00�
....
4,700,938:
4,700,938...
0.00�
........................... ...
3211,936
. .......................
...............................................................................
3,211,93
...........................
....................................................
0
0.00�
......
2,823,892:
........................
2,823,892:
.. .. .......
0
O.00Y
2,006,029::
........................... .....................................................
2,006,029
....
0
0.0%
.................
849,650::
. ....................... ........................................................
849,650
0
0.0%
635,21T
............................. .....................................................
635,211::
........ ..................................................................................................
0
0.0%
231,1101
231,110
0
0.0%
Proposed FY 2026=27 General Fund
General Fund
Revenues
$110,232,200
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 16
Y 2026=27 Proposed Appropriations (General Fund)
Summary of General Fund Appropriatio xc udi g Capital Outlay & Transf t
Grand Total
* UAL payment of $2.9M
$8%53%570 I $94, 717, 660 j 5,178, 090 5.8
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245
FY 2026=27 Full -Time Equivalent (FTE)
Department
Total
FY 2023-24
Adopted
Personnel
FY 2024-25
Adopted
Personnel
374.47
FY 2025-26
Adopted
Personnel
378.31
FY 2026-27
Proposed
Personnel
392.24
Change f
FY26 to FY27
+13.93
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245
FY 2026=27 Proposed Appropriations (General Fund) —
Transfers Out
• Transfers Out= $13,668,200
➢ Debt Service Fund (POB Payments): $9,493,200
➢ GF CIP Fund: $3,800,000
y Solid Waste Fund: $175,000
➢ Senior Housing Fund: $200,000
6/1 /2026
City of El Segundo 1 350 Main St. El Segundo, CA 90245
19
t_I.St.(;t %1)O
Description
Proposed
Estimated Beginning Unassigned Fund Balance (July 1, 2026)
$37,827,180
Proposed FY 2026-27 Revenues
$110, 232, 200
Proposed FY 2026-27 Appropriations (Net of GF CIP)
($104,585,859)
Estimated Ending Fund Balance (June 30, 2027)
$43,473,521
25% Reserve Requirement (based on proposed recurring appropriations)
$26,146,465
Estimated Ending Unassigned Fund Balance (Net of 25% reserve)
$17,327,056
..................................................................................................................................................................................................................................................................................................................................................................................................................................
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245
20
5-Year General Fund Financial Forecast
City of El Segundo 1 350 Main St. El Segundo, CA 90245 21
]=Year General Fund Financial Fc
$220,000,000
$170,000,000
$120,000,000
$ 70, 000, 000
$ 20, 000, 000
FY 2026- FY 2027- FY 2028- FY 2029
$ (30,000, 000) - 2030- FY 2031- FY 2032- FY 2033- FY 2034- FY 2035-
27 28 29 30 32 33 34 35 36
� Revenue m� Expenditure - FB
FY 2026=27 Reserves
• General Fund Reserve: 25% ($26-1 M)
• OPEB Reserve: $38.1 M
• Pension Trust Reserve: $6.6M
• General Fund CIP Reserve: $900k
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 23
Proposed FY 2026=27 CIP Projects for All Funds
• Carryover projects in progress or about to begin = $15,354,934
• New Projects = $12,115,000
• $1,550,000 Proposed Transportation Funds Appropriations
• $51200,000 Proposed Enterprise Funds Appropriations
• $ 965,000 Proposed Special Revenue Funds Appropriations
• $ 600,000 Proposed Stormwater Fund Appropriations
• $3,800,000 Proposed General Fund Appropriations
$27,469,934 (Total)
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 24
Proposed FY 2026=27 General Fund CIP
(#24)
$
1 00_000
Safe Routes to School ($400k Gas Tax)
(#25)
$
900,000
Smoky Hollow Parking
(#35)
$
400,000
Library Interior & HVAC Maintenance
(#39)
$
800,000
Recreation Park (Joslyn Center)
(#44)
$
200,000
Police Department Range Ventilation
(#45)
$
50,000
Police Department Generator
(#46)
$
200,000
Police Department Security Cameras
(#47)
$
70,000
Public Works Remodel
(#49)
$
100,000
Citywide Misc. Repair
(#50)
$
130,000
Roofing (Citywide)
(#51)
$
100,000
Plumbing (Citywide)
(#52)
$
130,000
Miscellaneous Electrical (Citywide)
(#53)
$
120,000
Miscellaneous Equipment (Citywide)
(#57)
$
500,000
Projects Reserve (Citywide)
$3,800,000 (Total)
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 25
Recommended Actions:
Adopt resolution approving the proposed FY 2026-27
Citywide operating budget, capital improvement program
budget, various financial policies, and Gann
appropriations limit.
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 26
Questions
6/1/2026 City of El Segundo 1 350 Main St. El Segundo, CA 90245 27