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CC SR 20240604 04 - FY24-25 Prelim Budget CITY COUNCIL MEETING DATE: 06/04/2024 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to review the Fiscal Year (FY) 2023-24 year-end estimates and the FY 2024-25 Preliminary Citywide Budget. RECOMMENDED COUNCIL ACTION: (1) Review the FY 2023-24 year-end estimates and approve Budget Adjustments in the General Fund by reducing the budget in the amount of $808,700 in Non- Personnel and by $200,000 in Transfers-Out based on the third quarter year- end estimates; (2) Review the Preliminary FY 2024-25 Budget for the General Fund and affirm the changes since the April 18 Budget Workshop: • Increase the General Fund Revenues by $230,600. • Increase the General Fund Non-Personnel Expenditure by $80,000. • Adjust Transfers-Out: i. Decrease Transfers-Out by $30,000. ii. Increase Capital Infrastructure Program (CIP) by $1,400,000 from FY 2022-23 available unallocated fund balance as affirmed by the City Council at the April 18 Budget Workshop. iii. Retain the estimated FY 2024-25 unallocated balance of $266,650 instead of transferring it to the CIP Fund. (3) Review and approve the FY 2024-25 Preliminary Citywide Budget consisting of the Capital Infrastructure Program (CIP) Fund and program list, Special Revenue Funds, Permanent Funds, and Internal Service Funds; and, (4) Direct staff to return on June 18, 2024 for the budget public hearing and budget adoption consideration. FISCAL IMPACT: The FY 2024-25 Preliminary Citywide Budget includes total revenues of $59.3 million and total expenditures of $71.4 million for all funds, before transfers and does include the Improvement Authority. The total FY 2024-25 Preliminary Budget for General Fund revenues are $39.4 million, and expenditures are $35.3 million, excluding transfers. The total FY 2024-25 Preliminary Budget for the Capital Improvement Program is almost $25.7 million for 30 projects. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A 1 RANCHO PALOS VERDES ORIGINATED BY: Vina Ramos, Director of Finance VR Jason Loya, Senior Administrative Analyst REVIEWED BY: Vina Ramos, Director of Finance VR APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. FY 2023-24 Proposed Budget Adjustments for Savings and Unused Budget (page A-1) B. FY 2024-25 Preliminary Budget Summary (page B-1) C. FY 2024-25 CIP Status and Five-year CIP (page C-1) D. April 18, 2024 General Fund Budget Workshop Staff Report (page D-1) E. April 29, 2024 Capital Improvement Program Workshop Staff Report (page E-1) BACKGROUND: On March 13, 2024, at the City Council Goals Workshop, the Council received a third- quarter status report on their FY 2023 -24 goals. During this session, Staff proposed continuing existing goals, such as the Portuguese Bend Landslide Remediation Project, while also introducing a new goal supporting and growing local businesses. The budget allocations for these projects were subsequently discussed during both the General Fund and the Capital Infrastructure Program (CIP) Fund workshops. On April 18, 2024, the City Council held its annual General Fund Budget Workshop, where Staff presented FY 2023-24 year-end estimates and the list of assumptions used to develop the FY 2024-25 Proposed Budget for the General Fund. Staff also informed the City Council that an updated year-end report would be prepared at the conclusion of the third quarter and presented as part of the FY 2024-25 Preliminary Budget staff report on June 4, 2024. On April 29, 2024, the City Council held the Capital Improvement Program Workshop to receive a status report on the current FY 2023-24 projects, and at the same meeting, Staff presented the FY 2024-25 Proposed Five-Year Capital Improvement Program. At the end of both workshops, Staff obtained the necessary instructions to prepare the FY 202 4-25 Preliminary Budget. Based on the direction provided by the City Council at both budget workshops, tonight’s presentation to the City Council primarily highlights the changes from the FY 2024-25 Proposed Budget to FY 2024-25 Preliminary Budget. The comprehensive staff report for the FY 2024-25 budget will be presented to the City Council at its June 18, 2024 meeting as a duly noticed public hearing. If the changes presented this evening are accepted by the City Council, they will be included in the June 18 budget hearing and adoption report, as shown on the next page. 2 DISCUSSION: 1. FY 2023-24 General Fund Budget Adjustments At the April 18, 2024 Budget Workshop, Staff presented the estimated FY 2023-24 General Fund year-end revenues and expenditures. Staff reported that the estimated General Fund ending fund balance would be approximately $34.5 million, including transfers-out. After applying the City Council’s 50% Reserve Policy, the General Fund’s estimated Unallocated Fund Balance is approximately $16.7 million. Since the April 18, 2024 Budget Workshop, Staff reviewed current information available and proposes no changes to the year-end estimates. Additionally, as part of the annual process, Staff recommends adjusting the FY 2023-24 Revised Budget to closely align with the third quarter year-end estimates for non-personnel and transfers-out. This process would release the identified savings and unused budget back to the fund balance. As such, Staff seeks City Council acceptance of the FY 2023-24 General Fund budget adjustments including: • Non-Personnel – reduce FY 2023-24 Revised Budget by $808,700. • Transfers-Out – reduce FY 2023-24 Revised Budget by $200,000. Additional budget account details are also presented in Attachment A. Any substantial changes to the year-end estimates will be reported in the FY 2023-24 unaudited actuals presented for the City Council’s review in December. Subsequently, Staff will present an audited final report of the Annual Comprehensive Financial Report (ACFR) in February/March 2025. Table 1 on the next page is the estimated Fund Balance Summary for FY 2023-24 General Fund CONTINUED ON THE NEXT PAGE City Council Goals Workshop March 13 Budget Workshops April 18 (GF) April 29 (CIP) Preliminary Budget June 4 Budget Hearing & Adoption June 18 3 Table 1 –General Fund – Fund Balance Summary 2. FY 2024-25 General Fund Preliminary Budget Changes At the April 18 Budget Workshop, the City Council affirmed the presented budget assumptions for expenditures and revenues to develop the FY 202 4-25 Preliminary Budget for the General Fund. Based on the assumptions, Staff projected almost $39.5 million of revenues, including transfers, which indicates an increase of nearly $0.6 million, or 1.6%, over year-end estimates and roughly $0.7 million, or 1.7% over the revised budget. The City Council also affirmed the proposed expenditure budget of almost $39.4 million, including transfers out. This represents an increase of $0.4 million or 1.1% from the FY 2023-24 year-end estimates and $0.8 million 2.4% over the revised budget. Additionally, pursuant to City Council Policy Reserve Policy No. 41 the City Council approved Staff’s recommendation to transfer FY 2022-23 unallocated fund balance of $2.7 million as follows: • $889,500 to the CIP Fund for the Ladera Linda Community Center loan paymen t. • $400,000 to the Employee Pension Service Fund (EPSF) for pension payments. The approved transfers are funded from the prior year’s unrestricted fund balance, and operating surplus, respectively. • $1.4 million additional transfers to the CIP Fund. Following the Budget Workshop, Staff received additional information which led to an upward revision of revenue projections by $230,600 or 0.6% in revenues and $80,000 or 0.2% in expenditures, as described below. General Fund FY 2023-24 Revised Budget FY 2023-24 Year-End Estimates (Mid-Year) FY 2023-24 Year-End Estimates (3rd Qtr.) Beginning Fund Balance 33,260,494 33,260,494 33,260,494 - 0% Add: Revenues 38,511,800 38,577,500 38,577,500 - 0.0% Add: Transfers-In 270,000 270,000 270,000 - 0.0% Total Revenues 38,781,800 38,847,500 38,847,500 - 0.0% Less: Expenditures (34,378,400) (33,247,200) (33,247,200) - 0.0% Less: Transfers to CIP (TOT) (4,421,000) (4,121,000) (4,121,000) - 0% Less: Other Transfers-Out (145,000) (245,000) (245,000) - 0% Total Expenditures (38,944,400) (37,613,200) (37,613,200) - 0.0% Projected Ending Fund Balance 06/30/2024 33,097,894 34,494,794 34,494,794 - 0% City Council Restricted Fund Balance Less: Additional Transfers - CIP Ladera (PY Surplus) (889,500) (889,500) (889,500) - 0.0% Less: Transfers to Pension (PY Surplus) (291,300) (291,300) (291,300) - 0.0% 50% Reserve Policy (16,756,750) (16,623,600) (16,623,600) - 0.0% Projected Unallocated Fund Balance - 06/30/24 15,160,344 16,690,394 16,690,394 - 0% Change Increase/(Decrease) from Mid-Year 4 Overall, if the above proposed changes are approved by the City Council tonight, Staff projects that the FY 2024-25 operating revenues at approximately $39.5 million (before transfers-in) and operating expenditures of $3 5.3 million (before transfers-out). As illustrated in Table 2 below, Staff estimates a structural surplus of over $4.2 million, before transfers-out. After applying the transfers and one -time expenditures, the General Fund is estimated to have an unallocated balance of approximately $0.3 million on June 30, 2024. Table 2: FY 2024-25 General Fund Revenues and Expenditures Summary A summary of the changes for the FY 2024-25 Proposed General Fund Budget to the Preliminary General Fund Budget is provided below. FY 2024-25 Preliminary Budget Revenue Changes Since the Budget Workshop, Staff received additional information and updated the revenue projections for FY 2024-25. General Fund revenues, excluding transfers, are projected to reach $39.5 million, an increase of $266,650 over earlier projections of $39.2 million. This change is described below. Other Taxes and Miscellaneous Revenues: This category encompasses various revenue sources like the golf tax, business license tax, interest earnings, and one-time revenues. Compared to the FY2024-25 Proposed Budget, preliminary revenues are expected to increase by $230,600, or 0.6%. This increase comes from the insurance claim for damages incurred at Point Vicente Interpretive Center. This one-time revenue covered the cost of several repairs and remediation efforts to restore the building following the water damage incident. Other Taxes and Miscellaneous Revenues FY 23-24 Year-End Estimate: $4,110,000 FY 24-25 Proposed Budget: $4,227,200 FY 24-25 Preliminary Budget: $4,457,800 Net Change: +$230,600 or +0.6% General Fund Recurring One-Time Total Operating Revenues 39,189,300 265,000 39,454,300 Less: Operating Expenditures 34,590,150 700,000 35,290,150 Structural Surplus/(Deficit)4,599,150 (435,000) 4,164,150 Transfers-In 250,000 250,000 Less: Transfers-Out 4,147,500 - 4,147,500 Estimated Unallocated Balance 451,650 (185,000) 266,650 5 The table below provides a revenue summary between the FY 2024-25 Proposed and Preliminary Budgets, followed by a Preliminary Budget chart depicting revenue allocations for major categories in the General Fund. Table 3 – FY 2024-25 General Fund Preliminary Budget – Revenues Chart 1 – FY 2024-25 General Fund Preliminary Budget by Revenue Allocation Based on the information presented above, Staff seeks City Council affirmation to increase the FY 2024-25 Preliminary Budget Revenues by $230,600. FY 2023-24 FY 2024-25 FY 2024-25 YE Estimate at 3rd Qtr Proposed Budget Preliminary Budget Property Tax 17,132,100$ 17,545,000$ 17,545,000$ -$ 0.0% Transient Occupancy Tax 6,525,000 6,580,000 6,580,000 -$ 0.0% Sales Tax 2,828,000 2,850,000 2,850,000 -$ 0.0% Permits & Fees 3,197,400 3,226,500 3,226,500 -$ 0.0% Franchise Tax 2,200,000 2,250,000 2,250,000 -$ 0.0% Utility Users Tax 2,585,000 2,545,000 2,545,000 -$ 0.0% Other Taxes & Misc. Revenues 4,110,000 4,227,200 4,457,800 230,600$ 5.5% Subtotal 38,577,500 39,223,700 39,454,300 230,600$ 0.6% Transfers In 270,000 250,000 250,000 -$ 0.0% Total Revenues $ 38,847,500 $ 39,473,700 $ 39,704,300 230,600$ 0.6% Revenue Source Variance to Proposed Budget 6 I I I I Sales Tax --........ ~----$ 2. 9 7% _ ----------Franchise Tax Property Tax $17.5 45% Other $9.3 23% ----- $2.3 6% UUT $2.5 6% Olher Tax and Misic:. $4.5 11% I I FY 2024-25 General Fund Expenditures Changes Since the Budget Workshop, the following section summarizes additional information on the requested increase of $80,000 or 0.2% in the Non-Personnel category from the FY 2024-25 Proposed General Fund Budget to the FY 2024-25 Preliminary General Fund Budget. In summary, the updated non-personnel category includes: Non-Personnel Costs: The non-personnel category includes the Los Angeles County Sheriff contract, legal services, professional and technical services, repairs and maintenance, supplies, training and conferences, and miscellaneous/other expenses. At the April 18 Budget Workshop, Staff reported that the FY 2024-25 proposed budget is approximately $20.6 million for non-personnel. Since the Budget Workshop, Staff received additional information resulting in the total proposed budget to increase by $80,000 or 0.2% because of increases to non-personnel costs described as follows: • Increase of $30,000 based on the updated amount from the Los Angeles Sheriff Department that was sent to the City on May 22, 2024. The proposed budget increased from $8,141,600 to $8,171,600. This change includes a combination of salary rate increase approximately 3.44% from the Deputy Sheriff Service Unit and 12.5% (from 12%) for the liability trust fund. Overall, the new contract amount reflects a total contract increase of $0.4 million or 5.5% increase from FY 2023-24 year-end estimate is approximately $7.7 million (the City Council will be asked to consider approving the changes to the Sheriff’s contract at its June 18, 2024 meeting). • Increase of $50,000 (professional / technical services) for the City’s cost allocation formula of 60% for the preparation of the Palos Verdes Peninsula Multi-jurisdictional Hazard Mitigation Plan. The cost allocation includes Cities of Palos Verdes Estates for 20%, City of Rolling Hills for 7% and City of Rolling Hills Estates for 13%. A CalOES matching grant application has been submitted for the preparation of this Peninsula-wide Hazard Mitigation Plan which if awarded, would cover 75% of the cost (estimated at approximately $250,000 of the total $333,000 cost for the Plan) with remaining 25% as the Peninsula Cities matching portion based on the cost share formula noted above. Inclusive of the changes above, the revised Non-Personnel category for FY 2024-25 Preliminary Budget is as follows: CONTINUED ON THE NEXT PAGE 7 Non-Personnel Costs FY 23-24 Year-End Estimate: $20,233,400 FY 24-25 Proposed Budget: $20,579,550 FY 24-25 Preliminary Budget: $20,659,550 Net Change: +$80,000 or +0.02% Transfers-Out Based on the increase of public safety for $30,000, accordingly, the same amount is reduced in Transfers-Out from $4,177,500 to $4,147,500. In summary, after applying the proposed changes described above, the following Table 4 and Chart 2 on the next page summarizes the FY 2023-24 Preliminary Budget Expenditures by category and department. Table 4: FY 2024-25 General Fund Preliminary Budget – Expenditures by Category CONTINUED ON THE NEXT PAGE Expenditure Category Revised Budget Year-End Estimates Proposed Prelim Budget Change from Proposed Increase(Decrease) Salaries/Benefits 13,214,300 13,013,800 14,630,600 14,630,600 0% Sheriff Contract 7,872,000 7,742,750 8,141,600 8,171,600 30,000 0.4% Legal Services 950,000 950,000 975,000 975,000 0% Professional/Tech 4,969,438 4,675,300 4,620,500 4,670,500 50,000 1% Repairs/Maint 3,733,007 3,519,100 3,378,600 3,378,600 0% Supplies 696,312 671,100 725,000 725,000 0% Training/Conference/Meetings 302,443 230,970 308,200 308,200 0% Other Capital Outlay 61,000 7,000 66,000 66,000 0% Utilities 995,800 856,300 928,400 928,400 0% General Liabilities Premium 675,000 700,000 705,000 705,000 0% Equipment Replacement Charges 246,900 246,900 201,100 201,100 0% Misc 662,200 633,980 530,150 530,150 0% Subtotal $34,378,400 $33,247,200 $35,210,150 $35,290,150 $80,000 0.2% Transfers-Out 4,566,000 4,366,000 4,177,500 4,147,500 (30,000) -1% Grand Total $38,944,400 $37,613,200 $39,387,650 $39,437,650 $50,000 0.1% 8 Chart 2: FY 2024-25 General Fund Preliminary Budget – Expenditures by Department As described above, Staff seeks City Council affirmation on the budget increase in Non - Personnel in the amount of $80,000 or 0.02% and reduction of $30,000 or 0.1% in Transfers-Out. City Council Policy Reserve Policy No. 41 Pursuant to City Council Policy Reserve Policy No. 41, the City Council may allocate all or a percentage of the prior year’s (FY 2022-23) General Fund unrestricted excess reserve of $15.7 million during the budget adoption process. Based on the estimated year-end results of FY 2022-23, the City’s unallocated fund balance is $2.7 million. During the April 18 budget workshop, staff submitted recommendations similar to those from previous years. These included allocating $889,500 to the CIP Fund, equivalent to the anticipated annual principal and interest payment for the Ladera Community Park Project, and $400,000 to the Employee Pension Service Fund in accordance with the adopted Pension Guidelines. In addition, the City Council also affirmed the additional General Transfers-Out of the remaining balance of $1.4 million to the CIP Fund. This is to replenish the CIP fund from the public safety reductions made during the start of the prior year’s budget process. Once the budget is adopted for FY 2024-25, the estimated accumulated additional transfers from the General Fund to the CIP Fund since FY 2020-21 would be a total of $5.6 million. As described above, Staff seeks City Council affirmation on the additional Transfers-Out of $1.4 million to the CIP Fund for the Preliminary Budget. City Administration $4.3 11% City Council $0.1 0%Legal Services $1.0 3% Public Safety $9.0 23% Community Development $4.4 11% Finance $1.6 4% Public Works $8.0 20% Recreation & Parks $4.7 12% Non-Departamental $2.1 5% Transfers-Out $4.1 11% Other $4.8 12% 9 FY 2024-25 General Fund Estimated Fund Balance Based on the adjusted revenue projections and the identified additions to the expenditures and transfers, the estimated General Fund balance on June 30, 2024 would be approximately $34.8 million. This is an increase of $0.3 million or 0.8%. Additionally, after an increase of $1.4 million in additional transfers to the CIP Fund and Reserve Policy, the revised projected unallocated fund balance is $14.4 million, a decrease of almost $1.3 million since the budget workshop. As shown in Table 5 on the next page, the major change is due to the additional funds being transferred to the CIP Fund of $1.4 million. Table 5: FY 2024-25 General Fund Estimated Fund Balance FY 2024-25 One-Time and Recurring Revenues and Expenditures After capturing the regulatory increases and new ongoing programs, the FY 202 4-25 Proposed Budget positively exceeds the requirement pursuant to the City Council Policy No. 45, Balanced Operating Budget. The City has a structurally balanced operating budget with a surplus of $4.2 million. Overall, as shown in Table 6 on the next page, after including all operating expenditures, one-time expenditures, and transfers, the General Fund is projected to end the year with an unallocated balance of $266,650. Currently, there are several pending items that may have a financial impact in FY 202 4- 25. However, at this time, it is premature to project the outcome such as the potential increase in tax assessments from the Abalone Cove Landslide Abatement District and Klondike Canyon Landslide Abatement District. If the increases in tax assessments are General Fund FY 2023-24 Revised Budget FY 2023-24 Year-End Estimates FY 2024-25 Proposed FY 2024-25 Preliminary Beginning Fund Balance 33,260,494 33,260,494 34,494,794 34,494,794 - 0% Add: Revenues 38,511,800 38,577,500 39,223,700 39,454,300 230,600 1% Add: Transfers-In 270,000 270,000 250,000 250,000 - 0% Total Revenues 38,781,800 38,847,500 39,473,700 39,704,300 230,600 1% Less: Expenditures (34,378,400) (33,247,200) (35,210,150) (35,290,150) 80,000 0.2% Less: Transfers to CIP (TOT ) (4,421,000) (4,121,000) (3,882,500) (3,852,500) (30,000)-1% Less: Other Transfers-Out (145,000) (245,000) (295,000) (295,000) - 0% Total Expenditures (38,944,400) (37,613,200) (39,387,650) (39,437,650) 50,000 0.1% Projected Ending Fund Balance 06/30/2025 33,097,894 34,494,794 34,580,844 34,761,444 280,600 0.8% City Council Restricted Fund Balance Less: Additional Transfers - CIP Ladera (PY Surplus) (889,500) (889,500) (889,500) (889,500) - 0% Less: Transfers to EPS Fund (PY Surplus) (291,300) (291,300) (400,000) (400,000) - 0% Less: Additional Transfers to CIP Fund (PY Surplus) - - - (1,400,000) 1,400,000 100% 50% Reserve Policy (16,756,750) (16,623,600) (17,605,075) (17,645,075) 40,000 0% Projected Unallocated Fund Balance - 06/30/25 15,160,344 16,690,394 15,686,269 14,426,869 (1,259,400) -8.0% Increase/(Decrease) from Proposed 10 approved by the City Council, Staff will revise the FY 2024-25 Draft budget during the budget hearing on June 18, 2024. Therefore, Staff seek City Council affirmation to retain the unallocated balance of $266,650 rather than transferring it to the CIP Fund. If new information becomes available prior to the budget adoption on June 18, Staff will provide an update at that time. Table 6 – General Fund Recurring vs. One-time Revenues and Expenditures Revenue Type Recurring One-time Total Property Tax 17,545,000$ $ - 17,545,000$ Transient Occupancy Tax 6,580,000 - 6,580,000 Sales Tax 2,850,000 - 2,850,000 Franchise taxes 2,250,000 - 2,250,000 Utility Users Tax 2,545,000 - 2,545,000 Permits & Fees 3,226,500 - 3,226,500 Other Taxes & Misc. Revenues 4,192,800 265,000 4,457,800 TOTAL REVENUES $ 39,189,300 $ 265,000 $39,454,300 Expenditure by Program Recurring One-time Total City Council 120,100$ $ - 120,100$ City Administration 4,015,150 305,000 4,320,150 City Attorney 975,000 975,000 Public Safety 8,960,800 40,000 9,000,800 Finance 1,574,500 1,574,500 Community Development 4,123,000 280,000 4,403,000 Public Works 7,973,200 75,000 8,048,200 Recreation & Parks 4,707,400 4,707,400 Non-department 2,141,000 - 2,141,000 TOTAL EXPENDITURES $ 34,590,150 $ 700,000 $35,290,150 STRUCTURAL SURPLUS/(DEFICIT)4,599,150 (435,000) 4,164,150 Transfers in - 250,000 250,000 Transfers out 4,147,500 - 4,147,500 ESTIMATED UNALLOCATED BALANCE $451,650 ($185,000)$266,650 FUND 101 - GENERAL FUND FY 2024-25 RECURRING VS. ONE-TIME REVENUES AND EXPENDITURES 11 3. Capital Improvement Program Funds On April 29, 2024, the City Council conducted a workshop focusing on the Capital Improvement Program. The Public Works Department provided the City Council with information on the different categories of capital projects including projects that are completed, continuing, ongoing, new, and needs/wants list. The City Council approved the proposed projects for FY 2024-25 and made the comments below. The Staff response is noted below each comment. • New Civic Center Complex (Project 8503): Council noted that although this project is not a priority at this time, it should not come to a complete stop, and should continue to move forward through the onboarding of a program manager, defining of budgets, and determining of schedules. Staff has included the funding for a contracted program manager in the FY 2024- 25 CIP Preliminary Budget. • Intersection Improvements Along Palos Verdes Drive South (Project 8828): City Council directed Staff to determine if the traffic signal at the intersection of Palos Verdes Drive South and Palos Verdes Drive East improved conditions at the other intersections in the vicinity on Palos Verdes Drive South, or if improvements are still needed at the other intersections. Staff reviewed the gap study at the intersection of Palos Verdes Drive South and Forrestal Drive, which showed little improvement in gaps for left -turning movements. Therefore, Staff continues to include funding for this project in FY 2025-26 for design and FY 2026-27 for construction as part of the proposed CIP. • Palos Verdes Drive East Path Improvements Near Bronco Drive (Project 8839): City Council noted that depending on the progress of the Emergency Hydrauger Arrays Project for the Portuguese Bend Landslide, the City Council may want to see this project come back for consideration mid-year rather than at the next CIP cycle. • Western Avenue Beautification (Project 8840): the City Council noted that street beautification projects, especially on Western Avenue, are important because creating desirable streets helps with economic development. Staff included the funding for the Western Avenue Beautification Project, in stages, as part of the FY 2024-25 CIP (the funding stages include parkway improvements in FY 2024-25, bus shelter improvements in FY 2025-26, median improvements in FY 2026-27, and crosswalk improvements in FY 2027-28). Staff anticipates including additional arterial beautification projects in future CIP cycles for City Council consideration, depending on competing priorities. 12 • Additionally, the City Council noted that funding for the fuel modification program to reduce fire load and the associated risk of wildfire continues to be a priority. Staff reviewed the funding levels for the fuel modification program, which is part of the operating budget and determined that it is adequate for the anticipate needs in FY 2024-25. At the April 29 meeting, the City Council also received a report on the funding for the projects. The funding for the capital improvement program is comprised of the CIP Fund and Special Revenue Funds. The CIP Fund’s main source of revenue comes from the TOT Transfers-Out from the General Fund. The other funding sources for the capital improvement program are from the City’s Special Revenues. Staff prioritizes using Special Revenue Funds for any eligible project s before recommending the use of CIP Funds. Based on the direction that Staff received from the April 29 Budget Workshop, the FY 2024-25 Preliminary Budget for the capital improvement program decreased by $0.1 million, from $25.8 million to $25.7 million. Table 7 below summarizes the funding allocations and Table 8 is a summary list of the 30 affirmed projects for FY 2024-25. Additional information on the approved projects for FY 202 4-25 is also listed in Attachment C. Table 7: FY 2024-25 Preliminary Budget – Budget Allocations by Fund Fund No. Fund FY 2024-25 Preliminary Budget Budget Allocation % 202 Gas Tax 715,000 3% 204 Gas Tax SB-1 195,000 1% 211 1911 Act 730,000 3% 215 Proposition C 1,000,000 4% 220 Measure R 3,105,000 12% 221 Measure M - Grant 900,000 4% 310 CDBG 150,000 1% 330 CIP Fund 10,475,100 41% 331 Federal Grants 5,714,900 22% 332 State Grants 120,000 0% 340 Bicycle & Ped 150,000 1% 343 Measure W 490,000 2% 343 Measure W - Regional Grant 660,000 3% TBD External Funding 1,250,000 5% TOTAL $25,655,000 100% *This total includes $1,250,000 for project 8840 (western Ave. Beautification) and $660,000 for project 8721 (Measure W). The $1,910,000 will not be included in the Draft budget and was included to demonstrate the City’s participation in regional projects. * 13 Table 8: Preliminary Budget – Capital Improvement Program Fund No Fund Program Code Project Name Fiscal Year 2024-25 8200 Abalone Cove Santitary Sewer System Projects 360,000 330 CIP 8202 Abalone Cove Sanitary Sewer Rehabilitation Program 360,000 8300 Landslide Improvement Projects 4,840,000 215 Prop C 8301 Palos Verdes Drive South Landslide Repair Program 1,000,000 330 CIP 8301 Palos Verdes Drive South Landslide Repair Program 440,000 330 CIP 8304 Portuguese Bend Landslide Remediation 1,015,000 331 Federal Grants 8304 Portuguese Bend Landslide Remediation 2,385,000 8400 Parks, Open Space & Recreation Facilities Project 1,190,000 330 CIP 8426 Park Playground Improvements 650,000 330 CIP 84New3 Wildlife Cooridor Encroachment Removal 540,000 8500 Buildings Improvements Projects 1,025,000 330 CIP 8503 New Civic Center Complex 200,000 330 CIP 8509 Facilities Asset Management Program 825,000 8700 Sewer & Storm Drain Improvement Projects 5,420,000 330 CIP Fund 8701 Storm Drain Asset Management Program & Master Plan Update 485,000 330 CIP Fund 8708 Altamira Canyon Improvements 50,000 330 CIP Fund 8715 Stormwater Drainage Improvements - Palos Verdes Drive South at Peppertree Drive 995,000 331 Federal Grants 8715 Stormwater Drainage Improvements - Palos Verdes Drive South at Peppertree Drive 2,330,000 343.1 Measure W - Regional Grant8721 Multi-Jurisdictional Stormwater Treatment at Torrance Airport 660,000 330 CIP Fund 8722 Storm Drain Outlet Improvements at Ocean Crest Drive 85,000 330 CIP Fund 8723 Storm Drain Improvements at Peacock Ridge Road 285,000 330 CIP Fund 87New2 Lift Station Improvements at Lower Point Vicente 40,000 343 Measure W 87New7 Peninsula Verde Stormwater Treatment Drywell 490,000 14 Table 8: Preliminary Budget – Capital Improvement Program (Continued) Fund No Fund Program Code Project Name Fiscal Year 2024-25 8800 Right-of-Way Improvements Projects 12,820,000 330 CIP Fund 8808 Roadway Asset Management Program - Crenshaw Boulevard 675,000 221.1 Measure M - Grant 8809 Western Avenue Traffic Flow Improvements 900,000 310 CDBG 8810 Curb Ramp Improvements Program 150,000 211 1911 Act 8837 Traffic Signal at Palos Verdes Drive South and Palos Verdes Drive East 430,000 330 CIP 8840 Western Avenue Beautification (long term)1,785,000 0.001 External Funding 8840 Western Avenue Beautification (long term)1,250,000 204 Gas Tax 8844 Roadway Asset Management Program - Triennial Update 195,000 220 Measure R 8846 Traffic Calming Program - (Citywide)255,000 330 CIP Fund 8846 Traffic Calming Program - (Citywide)345,000 330 CIP 8847 Palos Verdes Drive East Guardrail Improvements 10,100 331 Federal Grants 8847 Palos Verdes Drive East Guardrail Improvements 999,900 330 CIP 8855 Roadway Asset Management Program - Palos Verdes Drive South 25,000 332 State Grants 8855 Roadway Asset Management Program - Palos Verdes Drive South 120,000 202 Gas Tax 8856 Roadway Asset Management Program - Residential Streets 715,000 220 Measure R 8856 Roadway Asset Management Program - Residential Streets 2,790,000 330 CIP 8856 Roadway Asset Management Program - Residential Streets 840,000 330 CIP 88LY4 Roadway Asset Management Program - Palos Verdes Drive East 235,000 220 Measure R 88New2 Roadway Asset Management Program - Highridge Road 60,000 330 CIP 88New3 Roadway Asset Management Program - Montemalaga Drive 40,000 211 1911 Act 88New6 Hawthorne Boulevard at Eddinghill/Seamount Left Turn Signal 300,000 330 CIP 88New7 Sidewalk Management Program 550,000 340 Bicycle & Ped Access 88New7 Sidewalk Management Program 150,000 TOTAL 25,655,000 15 Capital Improvement Program Funds - Fund Balance Overall, by the end of FY 2023-24, the Capital Improvement Program (CIP), which includes 12 funds (as detailed in Table 7), is projected to have a combined fund balance of $41.5 million. According to Table 9 below, $29.4 million of this balance is allocated within the CIP Fund, while the remaining $12 million consists of restricted funds that can only be allocated for specific projects due to the nature of their funding sources. Ladera Linda Community Park – Loan Payment The principal and interest payment of $889,500 for the construction for the Ladera Linda Community Park is included in both the year-end projection and the proposed FY 2024- 25 budget. The loan amount was $8 million from BMO (previously Bank of the West), with an interest rate of 1.98% and an estimated payoff date in April 2032. This amount is funded within the CIP Fund. However, since the inception of the loan, because General Fund’s revenues have consistently exceeded expenditures, the City Council has approved transfers of the same amount, replenishing the CIP Fund balance. Table 9 – FY 2023-24 Estimated Fund Balance - Capital Improvement Program Funds *$5 million of City Council Policy Reserve in FY 2023-24 was released for the emergency hydraugers project* As shown in Table 10, based on the estimated year -end amount and the proposed projects for FY 2024-25, the Capital Improvement Program funds are projected to have a balance of almost $31.3 million ending June 30, 2025. Of this amount, $25.1 million is from the CIP Fund while the remaining funds of $6.2 million are from restricted funds and can only be used for specific purposes. CONTINUED ON THE NEXT PAGE in millions CIP Fund Federal Grants Gas Tax Measure R Other Funds Total Beginning Fund Balance - 7/1/2023 35.3 0.0 2.3 2.4 6.3 46.3 Revenues and Transfers 5.5 0.2 2.2 0.7 4.1 12.7 Capital Improvement Program (10.5) (0.8) (1.5) (0.3) (3.5) (16.6) P&I Payment - Ladera Linda (0.9) - - - (0.9) Estimated Ending Fund Balance - 6/30/2024 29.4 (0.6) 3.0 2.8 6.9 41.5 Restricted by Council* Restricted by Special Purpose (3.0) (2.8) (6.9) (12.7) Reimbursable - Grants 0.6 0.6 Estimated Unallocated Fund Balance $29.4 - - - - $29.4 16 Table 10 – FY 2024-25 Estimated Fund Balance - Capital Improvement Program Funds Special Revenue Funds and Permanent Funds The City’s Special Revenues are taxes and other revenues set aside for a specific or restricted purpose. The City’s major special revenue funds are the Gas Tax, Proposition A, ARPA, Measure W, Proposition C, Measure R, Measure M, Measure A, 1911 Act Street Lighting, and other grants. In addition to funding the C apital Improvement Program projects, a few other Special Revenues are also designated for operating expenditures such as street maintenance, public facility upgrades and maintenance, public right -of-way maintenance, park upgrades, park maintenance, and transit related expenses. The City’s Permanent Funds are also used to account for resources legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs. These funds are the Habitat Restoration, Sub -Region One Maintenance, and Joint Powers Improvement Authority – Abalone Cove. Table 11 below is a summary of the estimated FY 2024-25 fund balance of $11.8 million for the Other Special Revenue Funds and Permanent Funds. CONTINUED ON THE NEXT PAGE in millions CIP Fund Federal Grants Gas Tax Measure R Other Funds Total Beginning Fund Balance - 7/1/2024 29.4 - 3.0 2.9 6.8 42.1 Revenues and Transfers 6.0 - 2.3 0.7 9.5 18.5 FY 2024-25 Capital Improvement Program (9.3) (5.7) (0.9) (3.1) (6.3) (25.3) Maintenance Projects (0.1) - (1.5) (0.1) (1.4) (3.1) P&I Payment - Ladera Linda (0.9) - - - - (0.9) Ending Fund Balance - 6/30/2025 25.1 (5.7) 2.9 0.4 8.6 31.3 Restricted by Council (5.0) - - - - (5.0) Restricted by Special Purpose (2.9) (0.4) (9) (11.9) Reimbursable Grants 5.7 5.7 Estimated Unallocated Fund Balance $20.1 - - - - $20.1 17 Table 11 – FY 2024-25 Estimated Fund Balance – Special Revenue & Permanent Funds Internal Service Funds The City uses an Internal Service Fund (ISF) as an accounting mechanism to accumulate and allocate costs internally among the City’s various functions. The City uses the Equipment Replacement Fund (ERF) to account for its fleet of vehicles, computer systems, furniture, and equipment, and the Employee Pension Service Fund (EPSF) to account for employee pension service costs, as described below. The funding and uses for the ISF is typically from the General Fund and restricted by the City Council. In accordance with the pension guidelines for transparency, during the fiscal year, Staff maintains the separate tracking of the fund’s financial transactions in the EPSF. At the end of the fiscal year, in compliance with accounting and audit requirements for the City’s ACFR presentation, this amount is included in the General Fund’s fund balance as part of the year-end closing process. Equipment Replacement Fund The ERF is an internal service fund that is used to accumulate funding to replace City equipment, furniture, and vehicles at the end of the designated life cycle. The ERF charges the General Fund as expenditures for all departments and the same amounts are then recorded as revenues in the ERF. Based on the recently modified City Council Policy No. 41 Reserve Policies, the City will maintain a minimum reserve of 75% but no more than 100% of the estimated replacement cost for equipment assets that are due to be replaced in the City’s next fiscal y ear. Staff estimates that the ERF will continue to have excess reserves by the end of FY 202 4-25. Therefore, Staff recommends annual charges of $201,100 to meet the minimum reserve of 75% instead of 100% of estimated replacement costs. The same amount is r ecorded in millions Special Revenue Funds & Permanent Funds Estimated Beginning Fund Balance - 7/1/2024 $16.3 Add: Revenues $14.5 Add: Transfers-In from General Fund $0.3 Total Revenues $14.8 Less: Expenditures ($18.9) Less: Transfers-Out ($0.3) Total Expenditures ($19.2) Estimated Ending Fund Balance - 6/30/2025 $11.8 Restricted by City Council Policy $0.0 Restricted by Laws/External Agencies ($11.8) Estimated Unallocated Fund Balance - 06/30/2025 - 18 as revenues in ERF plus estimated interest earnings of $75,000. For expenditures, the estimated amount is approximately $678,500 or 15% of the replacement value and $200,000 of depreciation. As with previous years, before replacing any fully funded equipment/vehicles, Staff will continue to assess the status and extend the life of the asset when possible. As a result, the projected fund balance on June 30, 202 5 is almost $2.4 million and after applying the $2.2 million City Council policy reserves, the ERF is estimated to end the year with an unallocated fund balance of approximately $0.2 million as illustrated in Table 12. Employee Pension Service Fund (EPSF) On February 2, 2021, the City Council approved the CalPERS Pension Plan Guidelines which provides a financial plan to address the City’s outstanding pension liability and CalPERS’ continuous change in valuation methodology. Based on City Council’s discretion, the goal is to transfer funds to the EPSF of at least 10%, but no more than 25%, of the annual General Fund surplus (revenues minus expenditures, including transfers). As a result, the accumulated funds in the EPSF would then relieve the General Fund of payment more than $900,000 of the City’s Unfunded Accrued Liability (UAL). At the April 18 Budget Workshop, the City Council affirmed the Staff’s recommendation of FY 2024-25 transfers-in of $400,000 from General Fund. At the end of FY 2024-25, the EPSF fund balance is estimated at almost $1.1 million. In summary, Table 12 below includes the estimated FY 2023-24 fund balance for Internal Service Funds. Table 12 – FY 2024-25 Estimated Fund Balance – Internal Service Fund Based on the information presented above, Staff seeks City Council affirmation for the FY 2024-25 Preliminary Budget for the revised Capital Improvement Program list, CIP in millions Equipment Replacement Fund Employee Pension Service Fund Estimated Beginning Fund Balance - 7/1/2024 $2.8 $1.0 Add: Revenues $0.3 $0.0 Add: Transfers-In from General Fund $0.0 $0.4 Total Revenues $0.3 $0.5 Less: Expenditures ($0.7)($0.4) Less: Transfers-Out $0.0 $0.0 Total Expenditures ($0.7)($0.4) Estimated Ending Fund Balance - 6/30/2025 $2.4 $1.1 Restricted by City Council Policy ($2.2)($1.1) Restricted by Laws/External Agencies $0.0 $0.0 Estimated Unallocated Fund Balance - 06/30/2025 $0.2 - 19 Funds, Special Revenue Funds, and Internal Service Funds. Finally, direct Staff to return on June 18 for the budget hearing and budget adoption. ADDITIONAL INFORMATION: Employee Pension Guidelines On May 30, 2024, the Finance Advisory Committee (FAC) discussed their continued Work Plan in reviewing the existing pension guidelines and examining additional payment strategies to mitigate future impacts to the City’s Unfunded Accrued Liability (UAL). A separate staff report on FAC’s recommendations will be presented to the City Council for its review and consideration in the next few months. Review of Utility Users Tax (UUT) UUT continues to be a necessary revenue source that supports the City’s operations. At the Budget Workshop in April, the City Council approved continuing the 3% rate for UUT. With no material changes since the Proposed Budget, UUT revenues total approximately $2.5 million, accounting for 6% of the total General Fund revenues in FY 2024-25. CONCLUSION: After the Budget Workshop, Staff estimates the General Fund will end FY 2024-25 with revenues ($39.7 million) exceeding expenditures ($39.5 million) by almost $0.3 million. The City Council can consider utilizing this amount in FY 2024-25 once more information regarding pending matters and their fiscal impact becomes available as described earlier in this staff report. After including the transfers and 50% reserves pursuant to the City Council’s reserve policy, the General Fund is projected to end FY 2024-25 with a fund Unallocated Fund Balance of $14.4 million. The proposed FY 2024-25 Capital Improvement Program consists of 30 projects with a combined budget of approximately $25.7 million. These projects are mainly funded by the CIP Fund at 41%, with the remaining balance funded from Special Revenue Funds. The FY 2024-25 preliminary budget for the CIP Fund includes over $6 million in revenues including prior year’s additional transfers and $11.6 million of expenditures. The CIP’s ending fund balance by June 30, 2025, is estimated at $25.1 million. After applying the $5 million City Council’s reserve policy, the estimated unallocated fund balance is $20.1 million. Compared to the prior year’s balance, the CIP Fund experienced a decrease of approximately 17%. This decline can be attributed to the $7.2 million in expenditures during FY 2023-24, earmarked for emergency hydraugers (with $2.8 million sourced from ARPA Funds), as well as the projected $4.8 million expenditure in FY 2024-25 for the landslide mitigation efforts. Additionally, the Special Revenues Funds, Permanent Funds, and Internal Service Funds are also estimated to end FY 202 4-25 with stable fund balances. The Special Revenue Funds and Permanent Funds are estimated to end the year at approximately $11.8 of 20 restricted fund balance and the Internal Service Funds are estimated to end the year at $2.4 million or $0.2 net of City Council’s reserve policy. Staff seeks City Council acceptance of the FY 2024 -25 Preliminary Budget consisting of the General Fund, CIP, Special Revenues, Permanent, and Internal Service Funds. Any direction from the City Council based on the figures presented in this report will be incorporated in the FY 2024-25 Draft Budget that Staff will present at a duly noticed public hearing to be held by the City Council on June 18, 2024. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Provide Staff with further direction for consideration at the budget public hearing on June 18, 2024. 2. Discuss and take other action related to this item. 21 ATTACHMENT A Proposed Budget Adjustments Fiscal Year 2023-24 Account Type Department Fund Account Object Code Justification FY 2023-24 Proposed Budget Adjustments Non-Personnel City Administration, Community Development, Public Works, Recreation and Parks, Finance General Fund 4300-8100 Decrease line items for unspent budget from non-personnel line items including supplies, training, professional and technical, repairs and maintenance (808,700)$ Total - Personnel (808,700)$ Transfers-Out Transfers to CIP General Fund CIP 101-400-0000-9330 330-300-0000-9101 Decrease transfers to CIP based on year- end estimates for TOT. (200,000) Total - Tranfers-Out (200,000)$ Total Proposed Budget Adjustments - General Fund (1,008,700)$ A-1 FY 2024-25 PRELIMINARY BUDGET Statement of Revenues - All Funds Row Labels Account Object Description FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget 101 General Fund (30,290,582) (36,243,544) (39,029,195) (38,781,800) (38,847,500) (39,704,300) 101-300-0000-3101 Golf Taxes (632,886) (733,545) (761,500) (720,120) (730,000) (735,000) 101-300-0000-3102 Property Taxes - Secured (9,072,028) (9,392,563) (9,920,524) (10,474,100) (10,474,100) (10,690,000) 101-300-0000-3107 Property Taxes - In Lieu Of (5,384,633) (5,565,565) (5,937,390) (6,173,400) (6,193,000) (6,400,000) 101-300-0000-3108 Property Taxes - Rpttf Rda (54,130) (48,336) (58,394) (52,000) (55,000) (55,000) 101-300-0000-3110 Property Transfer Taxes (570,712) (735,378) (439,367) (450,000) (410,000) (400,000) 101-300-0000-3111 Franchise Taxes (2,203,130) (2,278,003) (2,359,276) (2,200,000) (2,200,000) (2,250,000) 101-300-0000-3112 Sales Taxes (1,829,019) (2,679,211) (2,855,576) (2,759,000) (2,728,000) (2,750,000) 101-300-0000-3113 Sales Taxes - Pw (Psaf)(90,313) (103,232) (106,339) (96,800) (100,000) (100,000) 101-300-0000-3114 Utility Users Taxes - Elec.(1,042,287) (1,074,936) (1,346,551) (1,194,600) (1,300,000) (1,250,000) 101-300-0000-3115 Utility Users Taxes - Water (824,882) (1,007,202) (858,830) (847,000) (850,000) (860,000) 101-300-0000-3116 Utility Users Taxes - Gas (378,656) (443,854) (671,575) (440,600) (435,000) (435,000) 101-300-0000-3120 Transient Occ. Taxes - Misc (145,816) (223,617) (210,679) (227,900) (125,000) (150,000) 101-300-0000-3121 Transient Occ. Taxes-Terranea (2,969,619) (5,946,515) (6,642,322) (6,700,000) (6,400,000) (6,430,000) 101-300-0000-3202 Building & Safety Permits (1,050,030) (1,862,181) (2,122,766) (1,850,000) (1,900,000) (1,950,000) 101-300-0000-3203 Plan Check Permits (307,328) (538,280) (471,712) (500,000) (500,000) (500,000) 101-300-0000-3205 Film Permits (2,671) (42,972) (26,096) (21,000) (15,000) (21,000) 101-300-0000-3206 Animal Licenses (28,803) (26,944) (24,915) (25,200) (20,000) (20,000) 101-300-0000-3207 Building & Safety Smip 362 (365) (513) (800) (600) (600) 101-300-0000-3208 Building & Safety Admin Fees 53 (299) (337) (1,000) (500) (500) 101-300-0000-3209 Geology Permits (152,099) (240,065) (198,562) (210,000) (210,000) (205,000) 101-300-0000-3210 Business License Taxes (675,299) (730,966) (888,808) (700,000) (850,000) (850,000) 101-300-0000-3212 Business License Penalty (6,184) (18,227) (28,038) (12,500) (12,000) (15,000) 101-300-0000-3213 Parking Permits-Oversized Veh.(375) (88) (528) (400) (200) (300) 101-300-0000-3214 Parking Permit Decals (594) (594) (492) (600) (400) (400) 101-300-0000-3215 Planning & Zoning Permits (362,786) (481,031) (508,526) (425,000) (450,000) (425,000) 101-300-0000-3217 View Restoration Permits (15,318) (5,106) (5,444) (5,700) (5,700) (5,700) 101-300-0000-3218 Planning Misc. Permits (8,622) (9,509) (3,080) - (2,000) - 101-300-0000-3219 Row - Misc Permits (76,205) (128,589) (277,215) (128,800) (90,000) (95,000) 101-300-0000-3220 Row - Dumpster Permits (3,038) (2,304) (3,234) (3,000) (3,000) (3,000) 101-300-0000-3501 Tow Fees (5,229) (4,067) (4,067) (4,400) (3,500) (4,000) 101-300-0000-3502 False Alarm (7,400) (8,500) (9,700) - (8,000) (8,000) 101-300-0000-3503 Traffic Tickets (199,353) (188,739) (152,809) (153,000) (130,000) (130,000) 101-300-0000-3601 Interest Earnings (186,670) (398,318) (675,729) (314,000) (700,000) (700,000) 101-300-0000-3602 Rental/Leases (356,613) (357,049) (427,698) (441,600) (440,000) (450,000) 101-300-0000-3606 Investment Fair Value Adjustme - 651,176 331,029 - - - 101-300-0000-3607 Amortization-Leases - (87,735) (101,746) - - - 101-300-0000-3608 Interest Earnings-Leases - (15,029) (17,684) - - - 101-300-0000-3609 Investmnt Fair Value Adj-Other - - 389,795 - - - 101-300-0000-3801 Administrative Overhead (99,507) (100,014) (92,907) (100,000) (90,000) (90,000) 101-300-0000-3901 Donations - (1,500) - - - - 101-300-0000-3902 Casp Fees (5,360) (6,970) (7,682) (5,000) (5,000) (5,000) 101-300-0000-3904 Rda Loan Repayment (239,062) (123,520) (227,040) (264,680) (211,000) (265,000) 101-300-0000-3908 Rda Administrative Fees (8,000) - - - - - 101-300-0000-3999 Miscellaneous Revenue (144,968) (191,503) (225,882) (174,500) (174,000) (380,600) 101-300-0000-9217 Transfer - Public Safety (130,000) (160,000) (250,000) (170,000) (170,000) (170,000) 101-300-0000-9224 Transfer - Measure A Maint - (150,000) (50,000) (100,000) (100,000) (80,000) 101-300-1430-3999 Miscellaneous Revenue (80) (160) (440) (500) (500) (500) 101-300-4140-3504 Code Enforcement Citations (46,053) (42,906) (21,300) (15,000) (30,000) (20,000) 101-300-5120-3412 Program/Event Fees (1,840) (6,165) (3,803) (4,000) (4,000) (5,000) 101-300-5120-3602 Rental/Leases (2,190) (739) (2,294) (2,600) - (1,400) 101-300-5122-3411 Parking Lot Fees - (29,626) (32,274) (20,000) (20,000) (18,000) 101-300-5123-3506 Preserve Park Citations (200) (100) - - - - 101-300-5130-3602 Rental/Leases (960) (20,212) (37,749) (32,000) (40,000) (42,000) 101-300-5131-3412 Program/Event Fees (16,060) (125,769) (174,238) (200,000) (212,000) (215,000) 101-300-5140-3602 Rental/Leases (6,339) (6,825) (11,461) (9,000) (10,000) (11,000) 101-300-5150-3602 Rental/Leases 360 - - (15,000) - (16,400) 101-300-5160-3411 Parking Lot Fees (417,037) (243,699) (175,746) (230,000) (180,000) (200,000) 101-300-5170-3412 Program/Event Fees - (19,167) (5,396) (30,000) (12,000) (12,000) 101-300-5170-3901 Donations (1,000) (26,100) (27,700) (12,000) (18,000) (20,000) 101-300-5180-3602 Rental/Leases - (141,640) (125,137) (130,000) (90,000) (125,000) 101-300-5180-3701 Pvic Sales Taxable (12,840) (104,463) (140,690) (120,000) (120,000) (120,000) 101-300-5180-3901 Donations (1,875) (10,002) (6,994) (8,000) (9,000) (8,000) 101-300-5190-3412 Program/Event Fees - (2,676) (10,103) (5,000) (9,000) (8,900) B-1 FY 2024-25 PRELIMINARY BUDGET Statement of Revenues - All Funds Row Labels Account Object Description FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget General Fund 101-300-5190-3901 Donations - (2,050) (3,161) (2,000) (2,000) (2,000) 101-300-9101-3301 Federal Grants (515,258) - - - - - 202 Gas Tax (1,687,873) (1,910,859) (1,081,390) (1,217,400) (1,168,000) (1,184,600) 202-300-0000-3304 State Grants - Section 2103 (278,418) (362,089) (343,772) (419,400) (394,000) (375,000) 202-300-0000-3305 State Grants - Section 2105 (212,605) (251,253) (242,469) (277,700) (257,000) (262,000) 202-300-0000-3306 State Grants - Section 2106 (123,979) (149,037) (143,985) (162,200) (150,000) (152,000) 202-300-0000-3307 State Grants - Section 2107 (287,691) (303,860) (330,241) (333,600) (333,000) (359,000) 202-300-0000-3308 State Grants - Section 2107.5 (6,000) (12,000) (6,000) (6,000) (4,000) (6,000) 202-300-0000-3309 State Gas Tax - Sb1 (773,632) (842,374) - - - - 202-300-0000-3601 Interest Earnings (5,548) (15,232) (19,705) (18,500) (30,000) (30,600) 202-300-0000-3606 Investment Fair Value Adjustme - 24,986 4,782 - - - 203 1972 Act Landscape/Light (240) 203 (400) (300) (800) (800) 203-300-0000-3601 Interest Earnings (240) (391) (638) (300) (800) (800) 203-300-0000-3606 Investment Fair Value Adjustme - 594 238 - - - 204 Gas Tax-Sb1 - - (935,712) (1,046,300) (1,053,000) (1,123,800) 204-300-0000-3309 State Gas Tax - Sb1 - - (944,656) (1,046,300) (1,013,000) (1,083,000) 204-300-0000-3601 Interest Earnings - - (17,454) - (40,000) (40,800) 204-300-0000-3606 Investment Fair Value Adjustme - - 26,398 - - - 209 El Prado Lighting District (3,283) (2,827) (3,899) (3,880) (4,700) (4,800) 209-300-0000-3102 Property Taxes - Secured (2,971) (3,132) (3,369) (3,380) (3,400) (3,500) 209-300-0000-3601 Interest Earnings (312) (559) (971) (500) (1,300) (1,300) 209-300-0000-3606 Investment Fair Value Adjustme - 864 441 - - - 211 1911 Act Street Lighting (782,857) (889,362) (873,229) (776,200) (948,000) (967,600) 211-300-0000-3102 Property Taxes - Secured (769,945) (806,016) (854,942) (751,300) (883,000) (900,600) 211-300-0000-3601 Interest Earnings (12,912) (23,793) (46,567) (24,900) (65,000) (67,000) 211-300-0000-3606 Investment Fair Value Adjustme - 38,760 28,280 - - - 211-300-0000-3999 Miscellaneous Revenue - (98,313) - - - - 213 Waste Reduction (206,789) (274,075) (242,976) (197,400) (205,000) (211,000) 213-300-0000-3302 State Grants (15,952) (76,287) (17,320) - - - 213-300-0000-3406 Waste Reduction Fees (187,231) (200,137) (220,361) (192,500) (195,000) (200,800) 213-300-0000-3601 Interest Earnings (3,606) (4,943) (7,991) (4,900) (10,000) (10,200) 213-300-0000-3606 Investment Fair Value Adjustme - 7,292 2,696 - - - 214 Air Quality Management (55,700) (38,769) (71,916) (55,600) (41,600) (41,600) 214-300-0000-3303 Local Grants (54,492) (39,723) (68,403) (54,000) (40,000) (40,000) 214-300-0000-3601 Interest Earnings (1,208) (1,896) (1,930) (1,600) (1,600) (1,600) 214-300-0000-3606 Investment Fair Value Adjustme - 2,850 (1,583) - - - 215 Proposition C (744,465) (870,659) (917,763) (1,003,900) (951,100) (969,200) 215-300-0000-3303 Local Grants (710,280) (874,133) (905,694) (994,000) (939,100) (957,000) 215-300-0000-3601 Interest Earnings (8,185) (10,433) (13,906) (9,900) (12,000) (12,200) 215-300-0000-3606 Investment Fair Value Adjustme - 13,907 1,837 - - - 215-300-0000-3999 Miscellaneous Revenue (26,000) - - - - - 216 Proposition A (869,939) (1,040,764) (1,110,784) (1,223,000) (1,197,000) (1,219,000) 216-300-0000-3303 Local Grants (856,312) (1,053,834) (1,091,892) (1,198,400) (1,132,000) (1,154,000) 216-300-0000-3601 Interest Earnings (13,627) (22,260) (42,019) (24,600) (65,000) (65,000) 216-300-0000-3606 Investment Fair Value Adjustme - 35,330 23,127 - - - 217 Public Safety Grants (157,786) (160,337) (168,405) (170,100) (188,600) (192,300) 217-300-0000-3302 State Grants (156,727) (161,285) (165,271) (168,500) (186,100) (189,800) 217-300-0000-3601 Interest Earnings (1,059) (1,745) (2,273) (1,600) (2,500) (2,500) 217-300-0000-3606 Investment Fair Value Adjustme - 2,693 (861) - - - 220 Measure R (544,634) (641,416) (697,416) (772,300) (784,000) (782,000) 220-300-0000-3303 Local Grants (533,448) (655,494) (679,075) (745,500) (704,000) (717,000) 220-300-0000-3601 Interest Earnings (11,186) (23,836) (48,846) (26,800) (80,000) (65,000) 220-300-0000-3606 Investment Fair Value Adjustme - 37,914 30,505 - - - 221 B-2 FY 2024-25 PRELIMINARY BUDGET Statement of Revenues - All Funds Row Labels Account Object Description FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget Measure M (606,661) (737,678) (775,725) (852,800) (857,300) (831,000) 221-300-0000-3303 Local Grants (604,417) (741,767) (768,179) (844,900) (837,300) (813,000) 221-300-0000-3601 Interest Earnings (2,244) (6,628) (13,664) (7,900) (20,000) (18,000) 221-300-0000-3606 Investment Fair Value Adjustme - 10,717 6,118 - - - 222 Habitat Restoration (6,092) 2,041 (7,344) (3,800) (104,600) (154,000) 222-300-0000-3601 Interest Earnings (6,092) (5,884) (5,620) (3,800) (4,000) (4,000) 222-300-0000-3606 Investment Fair Value Adjustme - 7,925 (1,724) - - - 222-300-0000-3999 Miscellaneous Revenue - - - - (600) - 222-300-0000-9101 Transfer - General Fund - - - - (100,000) (150,000) 223 Subregion One Maintenance (16,298) (24,905) (60,113) (69,400) (80,000) (75,000) 223-300-0000-3601 Interest Earnings (6,298) (9,929) (16,011) (9,400) (20,000) (15,000) 223-300-0000-3606 Investment Fair Value Adjustme - 15,024 5,898 - - - 223-300-0000-9101 Transfer - General Fund (10,000) (30,000) (50,000) (60,000) (60,000) (60,000) 224 Measure A Maintenance (153) (238,141) (20,427) (101,900) (22,800) (27,500) 224-300-0000-3303 Local Grants - (238,099) (21,031) (100,000) (20,000) (25,000) 224-300-0000-3601 Interest Earnings (153) (42) (3,034) (1,900) (2,800) (2,500) 224-300-0000-3606 Investment Fair Value Adjustme - - 3,638 - - - 225 Abalone Cove Sewer District (54,025) (55,224) (61,322) (131,100) (130,700) (131,800) 225-300-0000-3102 Property Taxes - Secured (51,980) (56,176) (57,998) (59,600) (59,400) (60,500) 225-300-0000-3601 Interest Earnings (2,045) (2,318) (2,258) (1,500) (1,300) (1,300) 225-300-0000-3606 Investment Fair Value Adjustme - 3,270 (1,066) - - - 225-300-0000-9101 Transfer - General Fund - - - (70,000) (70,000) (70,000) 228 Donor Restricted Contribution (23,195) (28,713) (80,479) (46,900) (94,900) (50,500) 228-300-0000-3601 Interest Earnings (6,495) (10,650) (17,983) (10,600) (25,000) (25,500) 228-300-0000-3606 Investment Fair Value Adjustme - 16,262 7,354 - - - 228-300-2999-3901 Donations - - (2,000) - (26,200) - 228-300-5411-3901 Donations (10,500) (31,000) (56,000) (30,000) (6,700) (20,000) 228-300-5414-3901 Donations (6,000) (3,000) (9,000) (6,000) - (4,000) 228-300-5415-3901 Donations (200) (300) (850) (300) (500) (300) 228-300-5417-3901 Donations - (25) (2,000) - - (200) 228-300-5418-3901 Donations - - - - (1,500) (200) 228-300-5419-3901 Donations - - - - (35,000) (300) 310 Cdbg (28,564) (156,633) (385,581) (150,000) (27,400) (150,000) 310-300-0000-3301 Federal Grants (25,556) (153,987) (360,426) (150,000) (27,400) (150,000) 310-300-3110-3301 Federal Grants (3,008) (2,646) (25,155) - - - 330 Capital Infrastructures Projec (1,935,958) (4,398,776) (7,777,253) (5,812,500) (6,010,500) (4,452,500) 330-300-0000-3601 Interest Earnings (214,382) (447,965) (816,186) (502,000) (1,000,000) (600,000) 330-300-0000-3606 Investment Fair Value Adjustme - 748,704 275,055 - - - 330-300-0000-3999 Miscellaneous Revenue (757) - - - - - 330-300-0000-9101 Transfer - General Fund (1,720,819) (4,699,515) (7,236,122) (5,310,500) (5,010,500) (3,852,500) 331 Federal Grants - - - - - (5,714,900) 331-300-0000-3301 Federal Grants - - - - - (5,714,900) 332 State Grants (44,850) (241,562) (431,938) (690) (86,600) (25,000) 332-300-0000-3302 State Grants (7,264) (241,441) (278,977) - (45,800) - 332-300-0000-3601 Interest Earnings - (121) (13,879) (690) (40,000) (25,000) 332-300-0000-3606 Investment Fair Value Adjustme - - 40,340 - - - 332-300-4120-3302 State Grants - - (179,422) - (800) - 332-300-8830-3302 State Grants (37,586) - - - - - 333 American Rescue Plan Act (Arpa)- (1,773,696) (3,797,904) (83,000) (150,000) (85,000) 333-300-0000-3301 Federal Grants - (1,803,693) (3,732,740) - - - 333-300-0000-3601 Interest Earnings - (63,088) (132,479) (83,000) (150,000) (85,000) 333-300-0000-3606 Investment Fair Value Adjustme - 93,085 67,315 - - - 334 Quimby Park Development (33,513) 4,108 (15,514) (7,600) (6,500) (6,600) 334-300-0000-3601 Interest Earnings (9,861) (10,723) (9,884) (7,600) (6,500) (6,600) B-3 FY 2024-25 PRELIMINARY BUDGET Statement of Revenues - All Funds Row Labels Account Object Description FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget Quimby Park Development 334-300-0000-3606 Investment Fair Value Adjustme - 14,831 (5,630) - - - 334-300-0000-3907 Developer Fees (23,652) - - - - - 336 Low-Moderate Income Housing (61,610) (28,845) (59,601) (39,000) (47,000) (48,600) 336-300-0000-3108 Property Taxes - Rpttf Rda (59,765) (30,880) (56,760) (35,000) (35,000) (36,400) 336-300-0000-3601 Interest Earnings (1,845) (3,748) (7,613) (4,000) (12,000) (12,200) 336-300-0000-3606 Investment Fair Value Adjustme - 5,783 4,772 - - - 337 Affordable Housing Projects (19,584) 6,007 (12,022) (11,000) (35,300) (25,500) 337-300-0000-3601 Interest Earnings (7,143) (11,704) (18,742) (11,000) (25,000) (25,500) 337-300-0000-3606 Investment Fair Value Adjustme - 17,711 6,720 - - - 337-300-0000-3999 Miscellaneous Revenue (12,441) - - - (10,300) - 338 Environmental Excise Tax (6,177) (14,974) (33,437) (24,800) (12,500) (12,500) 338-300-0000-3601 Interest Earnings (2,275) (1,999) (2,087) (1,300) (2,500) (2,500) 338-300-0000-3606 Investment Fair Value Adjustme - 2,633 (134) - - - 338-300-0000-3907 Developer Fees (3,902) (15,608) (31,216) (23,500) (10,000) (10,000) 340 Bicycle/Pedestrian Access (511) (28,038) (29,106) (48,500) (48,500) (42,000) 340-300-0000-3303 Local Grants (511) (28,038) (29,106) (48,500) (48,500) (42,000) 343 Measure W (679,381) (675,045) (694,997) (690,300) (713,500) (712,600) 343-300-0000-3303 Local Grants (679,381) (681,800) (685,417) (680,000) (681,500) (680,000) 343-300-0000-3601 Interest Earnings - (9,543) (20,181) (10,300) (32,000) (32,600) 343-300-0000-3606 Investment Fair Value Adjustme - 16,298 10,601 - - - 681 Equipment Replacement (114,965) (288,284) (301,825) (284,900) (346,900) (276,100) 681-300-0000-3601 Interest Earnings (21,365) (37,254) (65,518) (38,000) (100,000) (75,000) 681-300-0000-3606 Investment Fair Value Adjustme - 57,370 29,947 - - - 681-300-0000-3607 Amortization-Leases - - 25,946 - - - 681-300-0000-3803 Equipment Replacement Charges (93,600) (308,400) (292,200) (246,900) (246,900) (201,100) 682 Employee Pension Plan - (634,608) (401,993) (301,000) (326,300) (35,700) 682-300-0000-3601 Interest Earnings - (5,442) (18,657) (9,700) (35,000) (35,700) 682-300-0000-3606 Investment Fair Value Adjustme - 10,834 16,664 - - - 682-300-0000-9101 Transfer - General Fund - (640,000) (400,000) (291,300) (291,300) (0) Grand Total (38,975,685) (51,385,375) (60,079,666) (53,907,370) (54,490,600) (59,257,800) B-4 FY 2024-25 PRELIMINARY BUDGET Statement of Expenditures - All Funds Account (Multiple Items) Row Labels Category FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget 101 General Fund 26,240,531 31,305,149 36,295,550 40,125,200 38,794,024 39,436,650 City Administration 401,928 417,858 538,937 616,543 556,800 838,250 Operations & Maintenance 29,868 29,869 108,679 50,843 34,100 217,150 Salaries & Benefits 372,060 387,989 430,258 565,700 522,700 621,100 City Council 84,681 96,177 109,556 118,900 111,900 120,100 Operations & Maintenance 20,851 32,355 43,237 51,800 43,300 50,100 Salaries & Benefits 63,830 63,822 66,319 67,100 68,600 70,000 City Manager 2,319,433 2,433,348 2,460,114 3,268,655 3,063,698 3,481,900 Capital Outlay - - 59 1,000 1,000 1,000 Operations & Maintenance 1,030,830 1,180,647 1,110,376 1,678,655 1,511,485 1,621,200 Salaries & Benefits 1,288,603 1,252,701 1,349,679 1,589,000 1,551,213 1,859,700 Community Development 2,623,915 3,093,831 3,243,100 4,541,673 4,405,240 4,403,000 Operations & Maintenance 734,265 903,728 1,013,242 1,698,273 1,641,915 1,412,800 Salaries & Benefits 1,889,650 2,190,103 2,229,858 2,843,400 2,763,325 2,990,200 Emergency Operation 322,056 172,927 138,758 - 200,000 - Capital Outlay 20,373 - - - - - Operations & Maintenance 137,401 42,278 32,355 - 200,000 - Salaries & Benefits 164,282 130,649 106,403 - - - Finance 1,458,001 1,280,029 1,372,347 1,539,312 1,520,026 1,574,500 Operations & Maintenance 215,101 134,512 138,770 208,912 187,000 198,800 Salaries & Benefits 1,242,900 1,145,517 1,233,577 1,330,400 1,333,026 1,375,700 Legal Services 886,407 915,444 935,777 950,000 950,000 975,000 Operations & Maintenance 886,407 915,444 935,777 950,000 950,000 975,000 Non-Departamental 1,862,324 2,093,997 3,301,592 2,387,800 2,277,000 2,141,000 Capital Outlay 18,583 100 1,298,034 25,000 6,000 25,000 Operations & Maintenance 978,769 1,146,720 1,186,602 1,555,400 1,438,900 1,277,700 Salaries & Benefits 864,972 947,177 816,956 807,400 832,100 838,300 Public Safety 7,233,951 7,293,294 7,425,699 8,549,093 8,122,875 9,013,800 Capital Outlay - - 78,360 35,000 - 52,000 Operations & Maintenance 7,153,357 7,192,264 7,255,227 8,190,393 7,974,975 8,598,600 Salaries & Benefits 80,594 101,030 92,112 323,700 147,900 363,200 Public Works 4,646,168 4,934,104 5,539,427 8,287,468 7,721,200 8,047,200 Capital Outlay 5,995 129,439 - - - - Operations & Maintenance 2,939,812 3,071,832 3,751,900 5,680,668 5,185,100 5,102,300 Salaries & Benefits 1,700,361 1,732,833 1,787,527 2,606,800 2,536,100 2,944,900 Recreation & Parks 2,650,848 3,149,625 3,529,121 4,118,956 4,318,485 4,694,400 Operations & Maintenance 348,564 697,915 910,092 1,038,156 1,059,560 1,126,900 Salaries & Benefits 2,302,284 2,451,710 2,619,029 3,080,800 3,258,925 3,567,500 Unassigned 1,750,819 5,424,515 7,701,122 5,746,800 5,546,800 4,147,500 Transfers 1,750,819 5,424,515 7,701,122 5,746,800 5,546,800 4,147,500 Transfer - Abalone Cove Sewer - - - 70,000 70,000 70,000 Transfer - Habitat Restoration - - - - 100,000 150,000 Transfer - Ia Portuguese Bend 20,000 55,000 15,000 15,000 15,000 15,000 Transfer - Infrastructure 1,720,819 4,699,515 7,236,122 5,310,500 5,010,500 3,852,500 Transfer - Subregion 1 Maint 10,000 30,000 50,000 60,000 60,000 60,000 Transfer To Employee Pension F - 640,000 400,000 291,300 291,300 (0) 202 Gas Tax 2,599,346 1,003,641 1,231,681 1,585,900 1,522,878 1,819,300 Cip Misc./Others 1,626,932 183,898 315,000 - - 715,000 Capital Outlay 1,626,932 183,898 315,000 - - 715,000 Public Works 972,414 819,743 916,681 1,585,900 1,522,878 1,104,300 Capital Outlay 23,903 9,138 - - - - B-5 FY 2024-25 PRELIMINARY BUDGET Statement of Expenditures - All Funds Row Labels Category FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget Public Works Operations & Maintenance 948,511 810,605 916,681 1,585,900 1,522,878 1,104,300 204 Gas Tax-Sb1 - - 29,239 1,083,680 - 633,000 Cip Misc./Others - - 29,239 1,083,680 - 195,000 Capital Outlay - - 29,239 1,083,680 - 195,000 Public Works - - - - - 438,000 Operations & Maintenance - - - - - 438,000 209 El Prado Lighting District - - - 500 - - Unassigned - - - 500 - - Operations & Maintenance - - - 500 - - 211 1911 Act Street Lighting 828,970 386,790 440,188 395,000 452,700 1,371,100 Cip Misc./Others 368,410 15,752 - - - 730,000 Capital Outlay 368,410 15,752 - - - 730,000 Unassigned 460,560 371,038 440,188 395,000 452,700 641,100 Operations & Maintenance 460,560 371,038 440,188 395,000 452,700 641,100 213 Waste Reduction 224,461 318,983 276,255 298,000 258,740 319,200 Unassigned 224,461 318,983 276,255 298,000 258,740 319,200 Operations & Maintenance 154,335 248,796 271,534 298,000 258,740 319,200 Salaries & Benefits 70,126 70,187 4,721 - - - 214 Air Quality Management 55,839 54,000 171,993 - - - Unassigned 55,839 54,000 171,993 - - - Capital Outlay - - 36,926 - - - Operations & Maintenance 55,839 54,000 135,067 - - - 215 Proposition C 759,078 739,950 1,168,591 1,387,798 1,266,297 1,000,000 Cip Misc./Others 759,078 739,950 1,168,591 1,387,798 1,266,297 1,000,000 Capital Outlay 759,078 739,950 1,168,591 1,387,798 1,266,297 1,000,000 216 Proposition A 1,338,029 777,197 776,662 854,227 854,227 905,400 Cip Misc./Others 463,842 - - - - - Capital Outlay 463,842 - - - - - Unassigned 874,187 777,197 776,662 854,227 854,227 905,400 Capital Outlay 46,999 - - - - - Operations & Maintenance 827,188 777,197 776,662 854,227 854,227 905,400 217 Public Safety Grants 130,000 160,000 250,000 170,000 170,000 170,000 Unassigned 130,000 160,000 250,000 170,000 170,000 170,000 Transfers 130,000 160,000 250,000 170,000 170,000 170,000 Transfer - General Fund 130,000 160,000 250,000 170,000 170,000 170,000 220 Measure R 427,417 209,325 152,995 864,220 264,595 3,230,000 Cip Misc./Others 427,417 109,281 152,995 739,220 154,595 3,105,000 Capital Outlay 427,417 109,281 152,995 739,220 154,595 3,105,000 Public Works - 100,044 - 125,000 110,000 125,000 Capital Outlay - 14,818 - - - - Operations & Maintenance - 85,226 - 125,000 110,000 125,000 221 Measure M 414,190 536,921 696,999 1,739,563 1,126,400 1,523,400 Cip Misc./Others - - 91,964 838,163 425,000 900,000 Capital Outlay - - 91,964 838,163 425,000 900,000 Public Works - - - 81,400 81,400 81,400 B-6 FY 2024-25 PRELIMINARY BUDGET Statement of Expenditures - All Funds Row Labels Category FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget Public Works Operations & Maintenance - - - 81,400 81,400 81,400 Unassigned 414,190 536,921 605,035 820,000 620,000 542,000 Operations & Maintenance 414,190 536,921 605,035 820,000 620,000 542,000 222 Habitat Restoration 153,618 305,793 218,165 179,000 179,000 182,000 Unassigned 153,618 305,793 218,165 179,000 179,000 182,000 Operations & Maintenance 153,618 305,793 218,165 179,000 179,000 182,000 223 Subregion One Maintenance 42,116 44,703 47,440 45,900 47,400 49,400 Unassigned 42,116 44,703 47,440 45,900 47,400 49,400 Operations & Maintenance 42,116 44,703 47,440 45,900 47,400 49,400 224 Measure A Maintenance - 150,000 50,000 100,000 100,000 80,000 Unassigned - 150,000 50,000 100,000 100,000 80,000 Transfers - 150,000 50,000 100,000 100,000 80,000 Transfer - General Fund - 150,000 50,000 100,000 100,000 80,000 225 Abalone Cove Sewer District 94,903 119,142 155,983 189,468 139,782 157,500 Unassigned 94,903 119,142 155,983 189,468 139,782 157,500 Operations & Maintenance 79,443 103,452 140,154 189,468 132,332 157,500 Salaries & Benefits 15,460 15,690 15,829 - 7,450 - 228 Donor Restricted Contribution 26,608 13,770 36,223 18,000 14,500 17,000 Recreation & Parks 10,830 13,770 36,223 18,000 14,500 17,000 Operations & Maintenance 10,830 13,770 36,223 18,000 14,500 17,000 Unassigned 15,778 - - - - - Operations & Maintenance 15,778 - - - - - 310 Cdbg 29,908 158,529 400,186 270,513 27,483 150,000 Cip Misc./Others 26,900 155,654 375,261 270,513 27,483 150,000 Capital Outlay 26,900 155,654 375,261 270,513 27,483 150,000 Public Works 3,008 2,875 24,925 - - - Operations & Maintenance 3,008 2,875 24,925 - - - 330 Capital Infrastructures Projec 889,717 674,797 10,596,450 16,671,076 10,648,828 11,592,500 Cip Misc./Others 889,717 674,797 10,596,450 16,471,076 8,828,028 11,364,600 Capital Outlay 875,443 674,797 9,707,105 16,471,076 7,938,628 10,475,100 Operations & Maintenance 14,274 - 889,345 - 889,400 889,500 Emergency Operation - - - 200,000 1,820,800 - Capital Outlay - - - 200,000 200,000 - Operations & Maintenance - - - - 1,620,800 - Public Works - - - - - 227,900 Salaries & Benefits - - - - - 227,900 331 Federal Grants - - - 2,479,500 - 5,714,900 Cip Misc./Others - - - 2,479,500 - 5,714,900 Capital Outlay - - - 2,479,500 - 5,714,900 332 State Grants 49,207 89,053 93,964 481,973 150,000 217,000 Cip Misc./Others 49,207 - - 145,000 - 120,000 Capital Outlay 49,207 - - 145,000 - 120,000 Community Development - 89,053 93,964 336,973 150,000 97,000 Operations & Maintenance - 89,053 93,964 336,973 150,000 97,000 333 American Rescue Plan Act (Arpa)- 1,803,693 3,732,742 6,087,590 754,357 660,050 B-7 FY 2024-25 PRELIMINARY BUDGET Statement of Expenditures - All Funds Row Labels Category FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Revised Budget FY 2023-24 YE Estimate FY 2024-25 Preliminary Budget Cip Misc./Others - 1,803,693 3,732,742 6,087,590 754,357 660,050 Capital Outlay - 1,803,693 3,732,742 6,087,590 754,357 660,050 334 Quimby Park Development 130,863 422,174 422,523 427,935 163,983 - Cip Misc./Others 130,863 422,174 422,523 427,935 163,983 - Capital Outlay 130,863 422,174 422,523 427,935 163,983 - 338 Environmental Excise Tax 143,635 120,090 62,596 - - - Public Works 143,635 120,090 62,596 - - - Operations & Maintenance 143,635 120,090 62,596 - - - 340 Bicycle/Pedestrian Access 511 28,038 29,106 - - 150,000 Cip Misc./Others - - - - - 150,000 Capital Outlay - - - - - 150,000 Public Works - 28,038 29,106 - - - Operations & Maintenance - 28,038 29,106 - - - Unassigned 511 - - - - - Operations & Maintenance 511 - - - - - 343 Measure W 187,954 465,213 521,145 608,300 378,100 898,600 Cip Misc./Others - - - 245,000 - 490,000 Capital Outlay - - - 245,000 - 490,000 Public Works 187,954 407,213 472,630 363,300 378,100 408,600 Operations & Maintenance 187,954 407,213 472,630 363,300 378,100 408,600 Unassigned - 58,000 48,515 - - - Operations & Maintenance - 58,000 48,515 - - - 681 Equipment Replacement 198,644 127,124 49,808 905,850 701,010 678,489 Unassigned 198,644 127,124 49,808 905,850 701,010 678,489 Capital Outlay 11,724 37,235 11,876 596,010 596,010 389,044 Operations & Maintenance 186,920 89,889 37,932 309,840 105,000 289,445 682 Employee Pension Plan - - 202,210 135,700 135,700 395,000 Non-Departamental - - 202,210 135,700 135,700 395,000 Salaries & Benefits - - 202,210 135,700 135,700 395,000 Grand Total 34,965,545 40,014,075 58,108,694 77,104,893 58,150,004 71,350,489 B-8 Program Code Project Name Fund Committed as of 3/31/2024 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Fiscal Year 2027-28 Fiscal Year 2028-29 8200 Series Abalone Cove Santitary Sewer System Projects 330 (CIP Fund)19,250$ 360,000$ 4,405,000$ 1,355,000$ -$ -$ 8300 Series Landslide Improvement Projects 330 (CIP Fund)-$ -$ -$ -$ 275,000$ 2,445,000$ 215 (Proposition C)1,021,057$ 1,000,000$ 825,000$ 440,000$ TBD TBD 330 (CIP Fund)223,562$ 440,000$ -$ -$ TBD TBD 220 (Measure R)292,300$ -$ -$ -$ -$ -$ 330 (CIP Fund)3,562,038$ 1,015,000$ 3,660,000$ 2,425,000$ -$ -$ 331 (Federal Grants)-$ 2,385,000$ 8,555,000$ 5,660,000$ -$ -$ 330 (CIP Fund)6,772,400$ -$ -$ -$ -$ -$ 333 (ARPA Federal Grant)2,862,600$ -$ -$ -$ -$ -$ 8400 Series Parks, Open Space & Recreation Facilities Projects 330 (CIP Fund)-$ 650,000$ 600,000$ 940,000$ -$ -$ 330 (CIP Fund)-$ 540,000$ -$ -$ -$ -$ 8500 Series Building Improvements Projects 330 (CIP Fund)448,840$ 200,000$ 350,000$ 500,000$ TBD TBD 330 (CIP Fund)93,994$ 825,000$ 355,000$ 660,000$ 545,000$ 585,000$ 8700 Series Sewer & Storm Drain Improvements Projects 330 (CIP Fund)-$ 485,000$ 500,000$ 500,000$ 500,000$ 500,000$ 330 (CIP Fund)311,974$ 50,000$ TBD TBD TBD TBD 330 (CIP Fund)263,594$ 995,000$ -$ -$ -$ -$ 331 (Federal Grants)-$ 2,330,000$ -$ -$ -$ -$ 333 (ARPA Federal Grant)11,000$ -$ -$ -$ -$ -$ 343 (Measure W - Regional Grant)-$ 660,000$ 1,800,000$ 2,910,000$ 235,000$ 155,000$ 330 (CIP Fund)-$ 85,000$ -$ -$ -$ -$ 330 (CIP Fund)42,605$ 285,000$ -$ -$ -$ -$ 330 (CIP Fund)-$ 40,000$ 315,000$ -$ -$ -$ 343 (Measure W)-$ 490,000$ -$ -$ -$ -$ Lift Station Improvements at Lower Point Vicente New Civic Center Complex Facilities Asset Management Program Storm Drain Asset Management Program & Master Plan Update Altamira Canyon Improvements Wildlife Cooridor Encroachment Removal 8715 Stormwater Drainage Improvements - Palos Verdes Drive South at Peppertree Drive Storm Drain Improvements at Peacock Ridge Road Multi-Jurisdictional Stormwater Treatment at Torrance Airport Storm Drain Outlet Improvements at Ocean Crest Drive Peninsula Verde Stormwater Treatment Drywell 8302 8301 Palos Verdes Drive South Realignment - East End 8202 Abalone Cove Sanitary Sewer Rehabilitation Program 8304 Portuguese Bend Landslide Remediation Palos Verdes Drive South Landslide Repair Program 8722 8723 8721 87New2 87New7 8701 8708 8503 8509 84New3 83New3 Portuguese Bend Landslide Remediation - Emergency Hydraugers 8426 Park Playground Improvements C-1 Program Code Project Name Fund Committed as of 3/31/2024 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Fiscal Year 2027-28 Fiscal Year 2028-29 8800 Series Right-of-Way Improvements Projects 204 (Gas Tax - SB1)141,137$ -$ -$ -$ -$ -$ 330 (CIP Fund)1,853$ 675,000$ -$ -$ -$ -$ 215 (Proposition C)200,000$ -$ TBD TBD TBD TBD 220 (Measure R)74,483$ -$ TBD TBD TBD TBD 221 (Measure M - Grant)475,127$ 900,000$ TBD TBD TBD TBD 310 (CDBG)30,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 215 (Proposition C)70,401$ -$ 85,000$ -$ -$ -$ 330 (CIP Fund)7,271$ -$ -$ 1,270,000$ -$ -$ 215 (Proposition C)55,503$ -$ -$ -$ -$ -$ 211 (1911 Act)-$ 430,000$ -$ -$ -$ -$ 330 (CIP Fund)211,391$ 1,785,000$ 420,000$ 3,600,000$ 420,000$ -$ 333 (ARPA Federal Grant)135,000$ -$ -$ -$ -$ -$ 0 (External Funding)-$ 1,250,000$ -$ -$ -$ -$ 204 (Gas Tax - SB1)-$ 195,000$ -$ -$ 215,000$ -$ 220 (Measure R)4,644$ 255,000$ -$ -$ -$ -$ 330 (CIP Fund)191,837$ 345,000$ 625,000$ 650,000$ 665,000$ 680,000$ 330 (CIP Fund)-$ 10,100$ -$ -$ -$ -$ 331 (Federal Grants)-$ 999,900$ -$ -$ -$ -$ 330 (CIP Fund)-$ 25,000$ 470,000$ -$ -$ -$ 331 (Federal Grants)-$ -$ 1,420,000$ -$ -$ -$ 332 (State Grants)-$ 120,000$ -$ -$ -$ -$ 202 (Gas Tax - Highway User Tax Account)-$ 715,000$ 790,000$ 400,000$ -$ -$ 204 (Gas Tax - SB1)-$ -$ 3,100,000$ -$ 1,610,000$ 525,000$ 220 (Measure R)-$ 2,790,000$ -$ 1,400,000$ 515,000$ 1,645,000$ 330 (CIP Fund)-$ 840,000$ 935,000$ 650,000$ 615,000$ 630,000$ 330 (CIP Fund)-$ -$ 95,000$ 1,405,000$ -$ -$ 330 (CIP Fund)-$ 235,000$ 3,395,000$ -$ -$ -$ 220 (Measure R)-$ 60,000$ 805,000$ -$ -$ -$ 330 (CIP Fund)-$ 40,000$ 540,000$ -$ -$ -$ 220 (Measure R)-$ -$ -$ 60,000$ 835,000$ -$ 330 (CIP Fund)-$ -$ -$ 65,000$ 905,000$ -$ 211 (1911 Act)-$ 300,000$ TBD -$ -$ -$ 330 (CIP Fund)-$ 550,000$ -$ -$ -$ -$ 340 (Bicycle & Ped access)-$ 150,000$ -$ -$ -$ -$ 17,523,861$ 25,655,000$ 34,195,000$ 25,040,000$ 7,485,000$ 7,315,000$ Roadway Asset Management Program - Indian Peak Road Roadway Asset Management Program - Palos Verdes Drive East Roadway Asset Management Program - Highridge Road Roadway Asset Management Program - Crest Road Roadway Asset Management Program - Residential Streets Roadway Asset Management Program - Montemalaga Drive Traffic Signal at Palos Verdes Drive South and Palos Verdes Drive East8837 88New4 Roadway Asset Management Program - Crestridge Road 8846 8847 Traffic Calming Program - (Citywide) 8828 Intersection Improvements along Palos Verdes Drive South Palos Verdes Drive East Guardrail Improvements Roadway Asset Management Program - Crenshaw Boulevard Curb Ramp Improvements Program Roadway Asset Management Program - Triennial Update8844 8840 8808 8810 8809 88New6 Western Avenue Traffic Flow Improvements Western Avenue Beautification (long term) 88New3 88New5 8855 88LY4 88New2 88New7 88LY2 8856 Sidewalk Management Program Roadway Asset Management Program - Palos Verdes Drive South Hawthorne Boulevard at Eddinghill/Seamount Left Turn Signal C-2 Program Code Project Name Fund Committed as of 3/31/2024 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Fiscal Year 2027-28 Fiscal Year 2028-29 Funding Summary 202 (Gas Tax - Highway User Tax Account)-$ 715,000$ 790,000$ 400,000$ -$ -$ 204 (Gas Tax - SB1)141,137$ 195,000$ 3,100,000$ -$ 1,825,000$ 525,000$ 211 (1911 Act)-$ 730,000$ -$ -$ -$ -$ 215 (Proposition C)1,346,961$ 1,000,000$ 910,000$ 440,000$ -$ -$ 220 (Measure R)371,427$ 3,105,000$ 805,000$ 1,460,000$ 1,350,000$ 1,645,000$ 221 (Measure M)-$ -$ -$ -$ -$ -$ 221 (Measure M - Grant)475,127$ 900,000$ -$ -$ -$ -$ 225 (Ab Cove sewer maint.)-$ -$ -$ -$ -$ -$ 310 (CDBG)30,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 330 (CIP Fund)12,150,609$ 10,475,100$ 16,665,000$ 14,020,000$ 3,925,000$ 4,840,000$ 331 (Federal Grants)-$ 5,714,900$ 9,975,000$ 5,660,000$ -$ -$ 332 (State Grants)-$ 120,000$ -$ -$ -$ -$ 333 (ARPA Federal Grant)3,008,600$ -$ -$ -$ -$ -$ 334 (Quimby park development)-$ -$ -$ -$ -$ -$ 340 (Bicycle & Ped access)-$ 150,000$ -$ -$ -$ -$ 343 (Measure W)-$ 490,000$ -$ -$ -$ -$ 343 (Measure W - Regional Grant)-$ 660,000$ 1,800,000$ 2,910,000$ 235,000$ 155,000$ 0 (External Funding)-$ 1,250,000$ -$ -$ -$ -$ 17,523,861$ 25,655,000$ 34,195,000$ 25,040,000$ 7,485,000$ 7,315,000$ C-3 Program Code Project Name Fund Committed as of 3/31/2024 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Fiscal Year 2027-28 Fiscal Year 2028-29 Wants/Needs List (Projects not recommended for funding in Fiscal Years 2024-25 through 2028-29) 8200 Series Abalone Cove Santitary Sewer System Projects 8300 Series Landslide Improvement Projects 8400 Series Parks, Open Space & Recreation Facilities Projects 330 (CIP Fund)-$ 8411 Lower Point Vicente Parking Lot Lighting Improvements 211 (1911 Act)-$ 330 (CIP Fund)-$ 330 (CIP Fund)-$ 8500 Series Building Improvements Projects 330 (CIP Fund)-$ 8700 Series Sewer & Storm Drain Improvements Projects 8711 Stormwater Drainage Improvements at Bayend Drive 330 (CIP Fund)-$ 8714 Stormwater Drainage Improvements from Crest Road to Crestridge Canyon 330 (CIP Fund)-$ 8718 Stormwater Drainage Improvements at Corsini Place 330 (CIP Fund)-$ 87New1 Stormwater Drainage Improvements - Hawthorne Boulevard at Hawkhurst Drive 330 (CIP Fund)-$ 8800 Series Right-of-Way Improvements Projects 8811 Aesthetic Improvements Program - Arterial Walls and Fences (City- wide)330 (CIP Fund)-$ 8839 Palos Verdes Drive East Path Improvements near Bronco Drive 330 (CIP Fund)-$ 330 (CIP Fund)-$ 8851 Arterial Roadway Beautification Program 330 (CIP Fund)-$ Restroom Improvements and New Office Space at Eastview Park 8845 Palos Verdes Nature Preserve Parking - Crenshaw Boulevard (North of Crest Road) 8417 Point Vicente Interpretive Center "Bubbles" Statue Marquee Sign Fence Program8404 84New1 Connector Trail 85Pot1 C-4 Program Code Project Name Fund Committed as of 3/31/2024 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Fiscal Year 2027-28 Fiscal Year 2028-29 COMPLETED PROJECTS 8200 Series Abalone Cove Santitary Sewer System Projects 8300 Series Landslide Improvement Projects 8302 Palos Verdes Drive South Landslide Repair Program 8400 Series Parks, Open Space & Recreation Facilities Projects 8405 Ladera Linda Community Park 8500 Series Building Improvements Projects 8508 Point Vicente Interpretive Center Restroom Improvements 8700 Series Sewer & Storm Drain Improvements Projects 8800 Series Right-of-Way Improvements Projects 8843 Roadway Asset Management Program - Silver Spur Road (North of Hawthorne Boulevard) 8853 Retaining Wall Repairs at 3001 Crest Road C-5