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CC MINS 20250417 ADJ (Budget Workshop - General Fund) MINUTES RANCHO PALOS VERDES CITY COUNCIL 111 ADJOURNED REGULAR MEETING/BUDGET WORKSHOP APRIL 17, 2025 CALL TO ORDER: The Adjourned Regular of the Rancho Palos Verdes City Council was called to order by Mayor Bradley at 6:13 P.M. at Fred Hesse Jr. Community Park, McTaggart Hall, 29301 Hawthorne Boulevard. This meeting took place both in person and remotely. Remote participation by any Councilmember was in accordance with Government Code Section 54953. Members of the public could observe and participate using the Zoom participation feature and with options called out in the public participation form provided under a separate cover with the agenda. Notice having been given with affidavit thereto on file. ROLL CALL: City Council roll call was answered as follows: PRESENT: Ferraro, Lewis, Perestam, Seo, and Mayor Bradley ABSENT: None Also present were Ara Mihranian, City Manager; Catherine Jun, Deputy City Manager; Vina Ramos, Director of Finance; Robert Moya, Deputy Director of Finance; Brandy Forbes, Director of Community Development (via Zoom); Ramzi Awwad, Director of Public Works; Daniel Trautner, Director of Recreation and Parks; James O'Neill, Senior Administrative Analyst; Nathan Zweizig, Acting Deputy City Clerk (via zoom), and Teresa Takaoka, City Clerk. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Director of Finance Vina Ramos. APPROVAL OF THE AGENDA: Councilmember Ferraro moved, seconded by Mayor Pro Tem Seo, to approve the agenda as presented. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None PUBLIC COMMENTS FOR NON-AGENDA ITEMS: None. REGULAR BUSINESS: 1. Consideration to receive a report on the FY 2024-25 year-end estimates and review of the preliminary budget assumptions for developing the FY 2025-26 General Fund budget (Ramos/Moya/O'Neill) City Clerk Takaoka reported that there was no late correspondence, and there were no requests to speak. City Manager Mihranian provided an introduction of the item and introduced the Finance Director Ramos who presented a staff report and PowerPoint presentation along with Deputy Director Moya and Senior Administrative Analyst O'Neill. Discussion ensued among Council Members and questions were asked of Staff. Recommendations were voted on as follows: Mayor Bradley moved, seconded by Councilmember Lewis to approve: 1) Received and filed the update on FY 2024-25 year-end estimates; and 2) Approved closing the r $2.8 million Los Angeles County Supervisor Hahn's Social Program Grant on June 30, 2025 and allocating the remaining balance of approximately $570,000 to the Capital Infrastructure Program (CIP) Fund for landslide emergency and mitigation efforts. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None Mayor Bradley moved, seconded by Mayor Pro Tem Seo, to affirm the FY 2025-26 budget assumptions which include: Revenue projections of$41.6 million which includes continuing the 3% Utility User Tax rate and Transfers-In of $250,000, Personnel costs of$15.8 million consisting of the following: a. Including all existing and approved positions for competitive, part-time, confidential, elected officials, and management; b. Using assumptions based on current labor agreements for the cost-of-living adjustment (COLA), performance merits, and benefits; c. Adding one full-time Public Safety Manager (City Manager - Public Safety Division); d. Adding one full-time Recreation Coordinator (Recreation and Parks, Open Space); e. Reclassifying one Accounting Clerk position (Finance); f. Continuing to underfill Accounting Supervisor (Finance); g. Continuing to freeze Executive Assistant (City Manager); and h. Continuing to freeze GIS Coordinator (Community Development). The motion passed on the following roll call vote: I City Council Minutes Budget Workshop April 17, 2025 Page 2 of 4 AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None Mayor Pro Tern Seo moved, seconded by Mayor Bradley, to affirm the FY 2025-26 budget assumptions which include: the non-personnel costs of$21.0 million, including one-time expenditures and contingency budget for emergency repairs in General Fund. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None Mayor Bradley moved, seconded by Councilmember Ferraro, to affirm the FY 2025- 26 budget assumptions which include: Transfers-Out of$4.2 million, including $3.9 million to the CIP Fund and Other Funds; and, Transfers-out of$889,500 of additional transfers to the CIP Fund in accordance with the City Council Reserve Policy No. 41 and $400,000 to the Employee Pension Service Fund in accordance with the Pension Guidelines. The motion passed on the following roll call vote: III AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None Councilmember Lewis moved, seconded by Mayor Pro Tern Seo, to approve Funding priorities for the projected FY 2025-26 positive variance of$620,200 (projected revenues, minus operating expenditures, minus annual transfers) as an additional transfer to the CIP fund. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None Mayor Bradley moved, seconded by Mayor Pro Tern Seo, reviewed Staffs report on Fiscal Sustainability in response to the City Council's direction at the March 17 City Council Goal Workshop, and provided Staff direction on the following: i. Conduct further research on potential revenue sources for FY 2025-26 and future years: • Revenue sources for FY 2025-26: o Affirmed reinstating the 1972 Landscaping/Lighting District Assessments, as approved by the City Council on April 15, 2025, with a potential fiscal impact to increase revenues by approximately —$300,000 to —350,000. City Council Minutes Budget Workshop April 17, 2025 Page 3 of 4 o Approved reinstating CPI-U adjustments in the Master Fee Schedule, with a potential fiscal impact to increase revenues by approximately -$130,000 o Deferred reinstating the business taxes that were previously set to $0 for the Home Occupation businesses and Small Businesses until further information is provided to the City Council at a future meeting. • Conduct further research on the following potential revenue sources and present information for the City Council's consideration at a future meeting: o Storm Drain Fees o Transient Occupancy Tax o UUT — gas, electric, water, telecommunication o Franchise Tax ii. Approved to receive the cost containment strategies applied in the FY 2025-26 budget assumptions; and iii. Approved to receive the FAC's recommendations from the April 3, 2025 meeting. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None ADJOURNMENT At 8:38 P.M., Mayor Bradley adjourned to April 29, 2025 at 6:00 P.M. for a Budget Workshop (CIP). r-- i , David L. Bradley, Mayor 71' Attest: ___Q C____ _,,Gu- c."1,19,66e-lb--____ Ter a-Takaoka, City Clerk I City Council Minutes Budget Workshop April 17, 2025 Page 4 of 4