Beverly Hills City Council
June 23, 2026

AGENDA REPORT
Meeting Date: June 23, 2026
Item Number:

To: Honorable Mayor & City Council
From: Jeff S. Muir, Director of Finance
Tatiana Szerwinski, Assistant Director of Finance
Brandy Gros, Budget Manager
Subject: CITY COUNCIL CONSIDERATION AND ADOPTION OF THE FISCAL YEAR 2026-27 BUDGET; AND

RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY

HILLS ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2026-27; AND

RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY

HILLS APPROVING THE BUDGET AND FINANCIAL POLICIES
FOR FISCAL YEAR 2026-27 AND APPROPRIATING FUNDS
THEREFOR; AND

RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF

BEVERLY HILLS APPROVING THE BUDGET AND
FINANCIAL POLICIES FOR FISCAL YEAR 2026-27 AND

APPROPRIATING FUNDS THEREFOR
Attachments: 1. Resolution adopting the annual appropriations limit

2. Resolution adopting the City’s budget and financial policies

3. Resolution adopting the Parking Authority’s budget and financial policies

RECOMMENDATION
It is recommended that the City Council adopt the resolutions for the fiscal year (FY) 2026- 27 appropriations limit, operating and capital improvement budget, and financial policies for the City, and that the Board of Directors adopt the resolution approving the fiscal year 2026-27 operating budget and financial policies for the Parking Authority.

Meeting Date: June 23, 2026

INTRODUCTION
The purpose of this report is to request that the City Council and Board of Directors adopt the fiscal year 2026-27 budget and financial policies of the City and of the Parking Authority of the City of Beverly Hills, respectively. The Parking Authority’s operations are provided for through an operating agreement with the City of Beverly Hills, which employs or contracts for all staffing and other needs to operate the Parking Authority’s facilities.

In accordance with Government Code Section 65103, the Planning Commission, in its capacity as the Planning Agency, reviewed the Fiscal Year 2026-27 Proposed Capital Improvement Budget at its June 11, 2026 meeting and found it to be consistent with the City’s General Plan.

The City Council has been briefed multiple times throughout the fiscal year through financial updates, internal briefings, and budget study sessions on June 3, 2026 and June 10, 2026.

DISCUSSION
The proposed operating and capital improvement program (CIP) budgets were presented to Council at the budget study sessions on June 3, 2026 and June 10, 2026, at which time Council provided support for bringing the necessary resolutions forward for adoption.

Based on City Council discussion and direction provided at the budget study sessions, the following notable changes have been incorporated into the proposed operating budget now before Council and will be reflected in the adopted budget documents.  The $25,000 enhancement request for Festival Beverly Hills has been revised from a recurring expenditure to a one-time expenditure. Over the upcoming fiscal year, staff will work through the full list of special events with the City Council or an adhoc. Based upon the outcome of that exercise, if Festival BH remains an ongoing event, staff will either bring back a BEF for the next budget or scale the event to fit the current budget. One-time funding is available from unallocated Tourism and Marketing for the upcoming fiscal year.
 The $100,000 enhancement request for Affordable Housing Program Administration has been revised from a recurring expenditure to a one-time expenditure. This will allow staff to continue utilizing HouseKeys’ services for one additional year while completing a thorough analysis of in-sourcing options. This one-time funding will come from the Affordable Housing Fund, not the General Fund.

The revisions described above recharacterize these expenditures from recurring to onetime and do not affect the total proposed FY 2026-27 budget.

Proposed Citywide appropriations (including interfund transactions required by governmental accounting standards) for FY 2026-27 total $695.2 million for all funds, with $675.4 million in projected Citywide revenue. This includes General Fund appropriations of $346.6 million and Citywide CIP appropriations of $109.0 million. Setting aside internal service fund charges and interfund transfers, the “net” City budget anticipates $509.9 million in revenue inflow from external sources and $529.7 million in expenditure outflow to external sources.

The Fiscal Year 2026-27 Proposed Operating Budget for the Parking Authority includes total appropriations of $26.2 million with $32.4 million of anticipated revenue. The Parking Authority proposed budget is included as a sub-section in the City’s proposed operating budget document that was presented at the June 3, 2026 budget study session.

Meeting Date: June 23, 2026

The attached proposed operating budget includes a total of 23 budget enhancements netting to $9.3 million across all funds, after consideration of position, revenue, and other cost offsets. After incorporating the aforementioned changes to enhancement requests from the originally proposed budget, enhancement requests total $4.5 million for one-time expenditures and $4.8 million for ongoing costs. The enhancement requests for fiscal year 2026-27 were determined necessary to support the needs of the community and City Council, and include but are not limited to ongoing costs of enhanced security, automated license plate reader (ALPR) costs, Police Department recruitment and outreach, power washing of parking structures, commercial and residential solid waste services, and funding for existing Council-approved contracts including facilities maintenance, parks maintenance, and software licensing costs. Full summaries by fund and details for all enhancements can be found in the proposed operating budget document in the Budget Enhancements section and in the Supplemental Information section under Budget Enhancement Details.

General Fund Budget
The General Fund budget presented for adoption reflects a net use of reserves of $4.9 million before one-time items. This budget gap is recommended to be addressed by a one-time $5.0 million reduction to the transfer to the Infrastructure Fund, which can be accommodated due to savings achieved by the ZBB CIP Ad Hoc Committee review process. Additionally, the proposed budget includes the scheduled receipt of $15.0 million in one-time public benefit contributions pursuant to a developer agreement, which is accounted for below the line. A summary of the General Fund proposed budget is shown below.

Operating Revenue1$ 346.7
Operating Expenditures 330.2 Transfers Out (before reduction from ZBB CIP Savings) 21.4 Total Expenditures 351.6 General Fund Surplus/(Use of Reserves) before One-Time Items (4.9) Public Benefit Contribution Utilization2 - Recommended Reduction in Transfers Out (ZBB CIP Savings)3

5.0 Total Surplus / (Use of Reserves) 0.1 $ 1Operating Revenue excludes one-time public benefit contributions. 3Reflects a proposed one-time reduction in General Fund transfers to the Infrastructure Fund, pending Council approval.

FY 2026-27 Proposed General Fund Budget (in millions)
2Reflects only those public benefit contributions applied against current expenditures and excludes public benefit contributions expected to be earmarked for future public benefit.

Meeting Date: June 23, 2026

Capital Improvement Budget and Five-Year Plan
At a summary level, the proposed FY 2026-27 CIP budget results in a $109.0 million appropriation for capital projects across various funds, requiring a total of $7.5 million1 in direct General Fund support for capital projects. The five-year CIP plan as proposed would result in a total $472.7 million investment in infrastructure, facilities, and other capital projects over its term. These figures include estimated project administration costs attributable to these capital improvement projects.

Enterprise Funds
The following chart summarizes the FY 2026-27 projected revenue and proposed expenses for the City’s Enterprise Funds, which operate as self-supporting business-type activities funded primarily by user fees. These funds, which encompass utilities and parking operations, are structured to cover both operational costs and capital investments independently. It is important to note that surpluses or deficits in any given year are generally the result of a strategic approach to either accumulate reserves or utilize them for major capital projects and infrastructure needs, rather than reflecting operational imbalances.

1 $6.0 million for the Infrastructure Fund and $1.5 million for the Stormwater Fund.

FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
FY
2030-31
Five-Year
Plan
Enterprise Funds 27.4 $ 23.6 $ 20.8 $ 21.0 $ 21.7 $ 114.4 $ Infrastructure Fund 30.3 19.0 17.3 18.1 28.9 113.6 Capital Assets Fund 18.3 12.2 28.5 13.1 8.7 80.7 Parking Funds 11.1 10.7 7.5 6.7 6.7 42.8 Other Internal Service Funds 13.2 12.3 11.0 12.4 15.7 64.7 All Other Funds 8.6 17.8 8.7 5.7 15.5 56.4 Total 109.0 $ 95.6 $ 93.8 $ 77.0 $ 97.3 $ 472.7 $ NOTE: Immaterial differences may exist due to rounding.

Fund
Proposed
Fiscal Years (in millions)
Category Water
Funds
Parking
Funds
Solid
Waste
Fund
Wastewater
Funds
Stormwater
Funds
Total
Enterprise
Funds
Operating Revenue 46.7 $ 39.6 $ 28.0 $ 14.5 $ 2.0 $ 130.8 $ Operating Expenses 35.5 30.2 27.5 9.3 5.7 108.2 Operating Surplus/(Use of Reserves) 9.4 11.2 0.5 5.2 (3.7) 22.6 Capital Improvement (14.9) (11.2) (0.6) (10.4) (1.5) (38.6) Transfers In/(Out) 1.2 - (0.1) - 6.1 7.2 Total Surplus/(Use of Reserves) $ (1.8) (2.5) $ (0.2) $ (5.2) $ 0.9 $ (8.8) $ Enterprise Funds – FY 2026-27 Proposed Budget (in millions) Meeting Date: June 23, 2026

The Fiscal Year 2026-27 Proposed Operating and Capital Improvement Budgets, as originally presented to Council for consideration at the Budget Study Sessions on June 3, 2026 and June 10, 2026 can be viewed at https://www.beverlyhills.org/330/OperatingCapital-Improvement-Project-Bu. The aforementioned recommended update from the initial proposed budget document will be incorporated into the adopted budget, if approved by Council.

While our General Fund revenues remain robust, the projected slowing of growth, coupled with rising costs, remains the primary focus of this budget. Our long-term forecast continues to identify a short-term imbalance between revenue and expenditures.

However, the proactive measures we have taken this year, including the implementation of a zero-based budgeting approach to capital planning and the identification of operational efficiencies, have improved our five-year outlook by approximately $2 million per year. Our strong reserve position provides the stable foundation necessary to thoughtfully implement these long-term solutions without compromising our service levels.

Budget Resolutions and Financial Policies
The budget resolution is adopted by the City Council annually to formally approve total budget appropriations for the upcoming fiscal year and associated financial policies for the City. Financial policies establish the framework for the overall fiscal planning and management of the City of Beverly Hills. These policies guide City staff in the management of the City’s finances, as well as provide guidelines against which current budgetary performance can be measured and proposals for future programs can be evaluated.

Adherence to adopted financial policies promotes sound financial management, which helps maintain the City’s AAA bond ratings, provides a lower cost of capital, and a minimum of unexpected impacts upon taxpayers and users of public services. The areas covered by these policies are financial reporting, operating management, capital management, reserves, audit, and debt management.

Through the annual approval of the financial policies, the City Council is providing delegation of authority to the City Treasurer to invest or reinvest surplus funds, and to sell or exchange securities so purchased for and on behalf of the City, for the one‐year period commencing each July 1.

No significant changes have been made to the resolution approving the City’s budget or financial policies for FY 2026-27.

The Board of the Parking Authority also adopts a resolution to approve total annual budget appropriations and financial policies. No significant changes have been made to the resolution approving the Authority’s budget or financial policies for FY 2026-27.

Meeting Date: June 23, 2026

Annual Appropriations Limit
Article XIIIB of the California Constitution, commonly known as the Gann Limit, sought to limit the growth of government spending by providing a formula for calculating the annual spending limits at the state and local government levels. It specifies that appropriations from the proceeds of taxes received by governmental entities may increase annually as follows: 1) by the calendar year change in City or County population, and 2) by the fiscal year change in California per capita personal income, or the change in non-residential assessed valuation in Beverly Hills. To the extent that taxes exceed the City’s Gann limit, the City would be required to return the funds to taxpayers. The City Council is required to adopt the adjustment factors used by recorded vote. Using information provided by the State's Department of Finance on the change in California per capita personal income with the change in the City’s population, the City's appropriation limit for fiscal year 2026-27 is $340.7 million, as shown on Schedules B and C attached to the Appropriations Limit resolution. This represents the upper limit on expenditures from proceeds of taxes, as defined in the California Constitution, and does not include other types of revenue.

Therefore, the total appropriations for funds that receive tax revenue may be greater than $340.7 million when expenditures funded by other types of non-tax revenue are part of the appropriations.

As shown on Schedule B attached to the Appropriations Limit resolution, the appropriations subject to the limit total $283.2 million and the City is below the limit by $57.5 million.

FISCAL IMPACT
The recommended fiscal year 2026-27 budget appropriations for approval are as follows:

Further details can be found in the Fiscal Year 2026-27 Proposed Operating and Capital Improvement Budget documents (version as of May 29, 2026) on the City’s website at https://www.beverlyhills.org/330/Operating-Capital-Improvement-Project-Bu.

Nancy Hunt-Coffey
City Manager
Jeff S. Muir
Director of Finance
Approved By Approved By
FY 2026-27 Resources
Appropriations for
Council/Director
Approval
Net
City Operating Budget
(including CIP) $ 695,235,491 675,369,959 $ (19,865,532) $ Parking Authority Operating Budget 32,362,305 $ 26,207,000 $ 6,155,305 $ Attachment 1
1 B0785-0001\3262658v1.doc
RESOLUTION NO. 26-R-______

RESOLUTION OF THE COUNCIL OF THE CITY OF

BEVERLY HILLS ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2026-
27 WHEREAS, the voters of California on November 6, 1979, added Article XIII B to the State Constitution placing various limitations on the appropriations of the State and local governments; and
WHEREAS, Article XIII B provides that the appropriations limit for the Fiscal Year 2026-27 shall not exceed the appropriations limit for the prior year adjusted for the change in the cost of living and the change in population; and WHEREAS, “change in the cost of living" is defined as either (A) the percentage change in California per capita personal income from the preceding year, or (B) the percentage change in the local assessment roll from the preceding year due to the addition of local nonresidential new construction; and
WHEREAS, “change in population” is defined in Article XIII B as either the change in the City or County population; and
WHEREAS, each entity of local government shall annually select its change in the cost of living and change in population by a recorded vote of the governing body; and WHEREAS, the information necessary for making these adjustments is attached in Schedules A, B and C.

NOW, THEREFORE, the City Council of the City of Beverly Hills does resolve as follows:

Docusign Envelope ID: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611 2 B0785-0001\3262658v1.doc
Section 1. The “change in the cost of living” for Fiscal Year 2026-27 shall be the percentage change in California per capita personal income from the preceding year. The “change in population” shall be the City of Beverly Hills population change over the prior year.

The City Council reserves the right to recalculate and adopt new limitations on a future date.

Section 2. The appropriations subject to limitation in Fiscal Year 2026-27 for the City of Beverly Hills shall be $340,659,811.

Section 3. The Mayor shall sign this Resolution and the City Clerk shall certify and attest to the passage and adoption of this Resolution, and thereupon the same shall take effect and be enforced.

Section 4. The City Clerk shall certify to the adoption of this resolution and shall cause this resolution and their certification to be entered in the Book of Resolutions of the Council of this City.

Adopted:

CRAIG A. CORMAN
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)

HUMA AHMED
City Clerk
[Signatures continue on following page.]
Docusign Envelope ID: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611 3 B0785-0001\3262658v1.doc
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
JEFF S. MUIR
Director of Finance
Docusign Envelope ID: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611

SCHEDULE A
FUND
NO.
1978/79

APPROPRIATIONS

APPROPRIATED

TRANSFERS OR

RESERVES
DEDUCT

ENTERPRISE &

REVOLVING
DEDUCT
DEBT

SERVICE
DEDUCT

UNQUALIFIED

TRANSFERS
DEDUCT

REAPPROPRIATIONS
FROM 1977-78

ADJUSTED
TOTAL
01 $ 22,393,762 $ 1,456,000 $ - $ - $ (3,127,000) $ (147,076) $ 20,575,686 02 765,329 - - - (448,182) 317,147
03 138,776 - - - (41,642) 97,134
04 1,950,000 - - - (1,950,000) - -
06 31,154 - - - - (31,154) -
07 629,302 - - - - (418,432) 210,870
08 8,170,335 3,040,205 - - (3,194,115) 8,016,425
09 36,085 - - - (10,500) 25,585
10 48,881 - - - (42,055) 6,826
11 87,737 - - - (2,637) 85,100
12 38,000 - - - (38,000) -
14 30,675 - - (30,675) - - -
15 949,000 - - - - 949,000
17 7,383 - - - - 7,383
19 116,044 - - - - 116,044
24 196,325 - - (196,325) - - -
26 93,400 - - (93,400) - - -
27 63,875 - - (63,875) - - -
34 137,668 - - - - (133,710) 3,958
40 731,228 - (731,228) - - - -
43 213,333 - (213,333) - - - -
45 720,000 - (720,000) - - - -
46 457,000 - (457,000) - - - -
50 17,000 - - - - - 17,000
67 680,117 - - - - (480,117) 200,000
70 5,000 - - - - - 5,000
80 7,106,161 - (7,106,161) - - - -
81 2,144,496 - (2,144,496) - - - -
82 8,572,676 (8,572,676) - - - -
83 400,375 - (400,375) - - - -
84 837,846 - (837,846) - - - -
$ 57,768,963 $ 4,496,205 $ (21,183,115) $ (384,275) $ (5,077,000) $ (4,987,620) $ 30,633,158

CITY OF BEVERLY HILLS

APPROPRIATIONS SUBJECT TO LIMIT
BASE YEAR 1978-79
Docusign Envelope ID: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611

SCHEDULE B
TYPE OF TAXES FY 2025-26

PROJECTED
FY 2026-27

ADOPTED
BUDGET
FY 2027-28

PROJECTED

GENERAL FUND
Property Tax $ 113,298,000 $ 116,561,378 $ 120,586,000
Sales Tax 46,336,000 47,749,000 49,403,000
Transient Occupancy Tax (TOT) 46,000,000 46,719,000 48,801,000 Business Tax 67,050,000 65,448,000 66,757,000
Other Taxes 1,735,000 1,770,000 1,805,000
Subventions/Grants 171,000 50,000 51,000
Interest Earnings 1,796,496 1,852,774 1,889,773
Total General Fund Taxes 276,386,496 280,150,152 289,292,773

OTHER FUND TAXES
Park & Rec Construction Tax 4,464,000 3,000,000 3,060,000 Park & Rec Tax Interest Earnings 29,206 19,973 20,121
Total Other Funds Taxes 4,493,206 3,019,973 3,080,121
TAXES SUBJECT TO LIMIT 280,879,702 283,170,125 292,372,894 GANN LIMIT PER SCHEDULE C 325,536,539 340,659,811 356,070,186 (SHORT LIMIT)/OVER LIMIT $ (44,656,837) $ (57,489,686) $ (63,697,292)

CITY OF BEVERLY HILLS

ARTICLE XIIIB APPROPRIATIONS LIMIT
Docusign Envelope ID: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611

SCHEDULE C
FISCAL
YEAR

CPI/PER CAPITA INCOME

CHANGE OR NON-RESIDENTIAL

ASSESSED VALUE

POPULATION

CHANGE - CITY OR

LOS ANGELES COUNTY

ADJUSTMENT
FACTOR

APPROPRIATIONS
LIMIT
1978-79 N/A N/A N/A $ 30,629,160
1979-80 10.170% 0.000% 1.10170 33,744,146
1980-81 12.110% 0.000% 1.12110 37,830,562
1981-82 9.120% 0.000% 1.09120 41,280,709
1982-83 6.790% 0.049% 1.06842 44,105,270
1983-84 2.350% 1.600% 1.03988 45,864,012
1984-85 4.740% 1.190% 1.05986 48,609,618
1985-86 3.740% -0.290% 1.03439 50,281,377
1986-87 2.300% 1.180% 1.03507 52,044,816
1987-88 3.040% 0.043% 1.03084 53,650,038
1988-89 3.930% 1.120% 1.05094 56,382,979
1989-90 4.980% -0.108% 1.04867 59,126,925
1990-91 4.210% 0.002% 1.04212 61,617,401
1991-92 4.140% 1.730% 1.05942 65,278,474
1992-93 19.950% 1.490% 1.21737 79,468,223
1993-94 3.060% 0.960% 1.04049 82,686,190
Adjustment for Refuse Charges (2,000,000)
1993-94 Revised Appropriations Limit 80,686,190
1994-95 0.710% 0.780% 1.01496 81,892,882
1995-96 4.720% 1.000% 1.05767 86,615,809
1996-97 4.670% 1.580% 1.06324 92,093,207
1997-98 4.670% 1.240% 1.05968 97,589,245
1998-99 4.150% 1.390% 1.05598 103,051,983
1999-00 4.530% 1.670% 1.06276 109,519,166
2000-01 4.910% 2.030% 1.07040 117,228,957
2001-02 7.820% 1.930% 1.09901 128,835,710
2002-03 -1.270% 1.450% 1.00162 129,043,889
2003-04 2.310% 1.480% 1.03824 133,978,770
2004-05 3.280% 1.380% 1.04705 140,282,825
2005-06 5.260% 0.710% 1.06007 148,710,099
2006-07 3.960% 0.170% 1.04137 154,861,838
2007-08 4.420% 0.720% 1.05172 162,871,019
2008-09 4.290% 0.860% 1.05187 171,318,966
2009-10 0.620% 0.880% 1.01505 173,898,098
2010-11 -2.540% 0.750% 0.98191 170,752,195
2011-12 2.510% 0.380% 1.02900 175,703,219
2012-13 3.770% 0.380% 1.04164 183,020,074

APPROPRIATIONS SUBJECT TO LIMIT
BASE YEAR 1978-79 – 2026-27
Docusign Envelope ID: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611

SCHEDULE C
FISCAL
YEAR

CPI/PER CAPITA INCOME

CHANGE OR NON-RESIDENTIAL

ASSESSED VALUE

POPULATION

CHANGE - CITY OR

LOS ANGELES COUNTY

ADJUSTMENT
FACTOR

APPROPRIATIONS
LIMIT
2013-14 5.120% 0.690% 1.05845 193,718,198
2014-15 -0.230% 0.780% 1.00548 194,780,173
2015-16 3.820% 0.820% 1.04671 203,878,986
2016-17 5.370% 0.850% 1.06266 216,653,319
2017-18 3.690% 0.570% 1.04281 225,928,319
2018-19 3.670% 0.510% 1.04199 235,414,410
2019-20 3.850% -0.010% 1.03840 244,453,417
2020-21 3.730% -0.110% 1.03616 253,292,601
2021-22 5.730% -0.780% 1.04905 265,717,378
2022-23 7.550% -0.710% 1.06786 283,750,009
2023-24 4.440% -0.750% 1.03657 294,125,895
2024-25 3.620% 0.050% 1.03672 304,925,639
2025-26 6.440% 0.300% 1.06759 325,536,539
2026-27 4.950% -0.290% 1.04646 $ 340,659,811

APPROPRIATIONS SUBJECT TO LIMIT
BASE YEAR 1978-79 – 2026-27
Docusign Envelope ID: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611 Certificate Of Completion
Envelope Id: 3391CD6F-20EA-8C9C-8311-3BF8C7ADC611 Status: Sent Subject: Complete with Docusign: Resolution - Annual Appropriations Limit - FY26-27.pdf Source Envelope:

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Beverly Hills, CA 90210
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Jeff S. Muir
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Director of Finance
City of Beverly Hills
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Nancy Hunt-Coffey
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Attachment 2
1 B0785-0001\3262659v1.doc
RESOLUTION NO. 26-RRESOLUTION OF THE COUNCIL OF THE CITY OF

BEVERLY HILLS APPROVING THE BUDGET AND
FINANCIAL POLICIES FOR FISCAL YEAR 2026-27 AND

APPROPRIATING FUNDS THEREFOR
The Council of the City of Beverly Hills does resolve as follows:

Section 1. That certain document entitled “City of Beverly Hills Fiscal Year 2026- 27 Budget", a copy of which is on file in the office of the City Clerk and the Beverly Hills Public Library, which may hereafter be amended by the Council, is hereby approved as the budget for the City of Beverly Hills for the Fiscal Year 2026-27, beginning July 1, 2026.

Section 2. Appropriations in the amount not to exceed $695,235,491 are authorized for the purpose of carrying on the business of the City.

Section 3. In adopting the Budget, the City Council hereby gives authority to the City Manager, upon recommendation of the Director of Finance, to re-appropriate all unencumbered Fiscal Year 2025-26 appropriated fund balances and unexpended encumbrances of the Fiscal Year 2025-26 Budget.

Section 4. The City Manager, or their designee, upon recommendation of the Director of Finance, may transfer appropriations between and among all funds, as defined in the Fiscal Year 2026-27 budget, up to the amount of $695,235,491. Any transfer between capital improvement program projects within different funds must also be authorized by the City Manager. An annual report shall be made to the Council describing each transfer between funds and the reason therefor.

Section 5. The Director of Finance may make budget adjustments to accounts within the same fund, provided that the fund is within its approved budget.

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Section 6. The City Manager may appropriate up to $300,000 during the Fiscal Year and the Director of Finance may appropriate up to $100,000 during the Fiscal Year from all fund balances to any accounts within that fund as long as it meets the purposes of that fund’s designation. In addition, the City Manager or designee may also authorize appropriations during the Fiscal Year to fulfill the City’s obligations with respect to:
• Non-discretionary costs, including but not limited to:
o Litigation costs
o Insurance premiums
o Claims (liability, workers’ compensation, etc.)
o Debt service and related interest expense
o Credit card acceptance service charges
o Bank and investment/custodial fees
o Utility costs (gas, water, power)
o Taxes for City-owned properties
• Net neutral expenditures, including but not limited to:
o Reimbursed/reimbursable costs
o Pass through charges
o Expenditures that are funded through authorized donations o Appropriation of grant funds and donated funds
o Expenses incurred as a percentage of revenue generated • Local return fund exchanges
An annual report shall be made to the Council describing each appropriation, and the reason therefor.

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Section 7. Pursuant to the provisions of Section 37208 of the Government Code, the Council ratifies the prior payment of budgeted demands from those funds which have been certified or approved by the Director of Finance and may appropriate funds for non-budgeted items, and any such appropriation for a non-budgeted item shall constitute an approval to issue a warrant in payment of a proper demand or demands therefor.

Section 8. The City Council hereby adopts the Comprehensive Financial Policies of the City for Fiscal Year 2026-27, as attached to this resolution.

Section 9. In the case of fee-based programs, if the revenues for such programs exceed the amount budgeted, the City Council hereby authorizes the Director of Finance to increase the appropriation of said program in the same amount of the increased revenue.

Section 10. The Director of Finance is authorized to make such other revisions including individual line-item appropriations, changes in summaries, fund totals, grand totals, and other portions of the budget document as necessary to reflect and implement the programs specified in this resolution, and in full accordance with the direction provided by the Council up until the adoption of this resolution.

Section 11. The City Clerk shall certify to the adoption of this resolution and shall cause this resolution and their certification to be entered in the Book of Resolutions of the Council of this City.
[Signatures on following page.]
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Adopted:

CRAIG A. CORMAN
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)

HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
JEFF S. MUIR
Director of Finance
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Financial Policies
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City of Beverly Hills
Financial Policies
Section 1. Financial Reporting Policies
The City’s accounting and financial reporting systems will be maintained in general conformance with state and federal laws, generally accepted accounting principles (GAAP), and the Government Finance Officers Association (GFOA). Further, the City will make every attempt to implement all changes to governmental accounting practices at the earliest practicable time.

The City’s Annual Comprehensive Financial Report (ACFR) will be submitted to the GFOA Certification of Achievement for Excellence in Financial Reporting Program. The financial report should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provisions, disclose thoroughness and detail sufficiency, and minimize ambiguities and potential for misleading inference.

The City’s ACFR will also be submitted to the Electronic Municipal Market Access System (“EMMA”), a facility of the Municipal Securities Rulemaking Board, at www.emma.msrb.org, or such other addresses and/or such other services providing information with respect to bonds as the City may designate in writing to the bond trustee.

The City’s Budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units and as a communications device for all significant budgetary issues, trends, and resource choices.

To provide a reasonable basis for making the Director of Finance’s (management’s) required representations concerning the finances of the City of Beverly Hills, the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. The Director of Finance is given the responsibility and authority to develop and maintain proper internal controls on all financial aspects of the City and maintain all the books of the City for inspection. Because the cost of internal controls should not significantly outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements.

The Director of Finance shall evaluate the fiscal impact of proposed changes in all salaries or retirement benefits to be provided to any employee association, which shall be included in the presentation to the City Council.

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The Director of Finance shall endeavor to maintain cash reserves sufficient to adequately fund the net present value of accruing liabilities including self-insurance provisions, obligations to employees for vested payroll and benefits and similar obligations as they are incurred, and to maintain the highest credit rating possible for the City.

The Director of Finance shall endeavor to fund the City’s unfunded other post-employment benefits (OPEB) liability by budgeting at least two times the actuarially determined annual pay-as-you-go amount to fund the annual expenditures and expedite amortization of the unfunded liability until the OPEB liability is sufficiently funded, as determined by the Director of Finance, so as not to strand assets in the City’s Section 115 OPEB Trust. The City will endeavor to apply any excess funding normally contributed to the OPEB Trust, as determined by the Director of Finance, to fund the City’s unfunded pension liability through Trust contributions to fund additional amortization payments to CalPERS.

The Director of Finance shall endeavor to budget a minimum of an additional $5.0 million per year to amortize the City’s unfunded pension liability, contribute the funding into the City’s Section 115 Pension Trust (“Trust”), and make additional contributions from the Trust to CalPERS above the required minimum to expedite the amortization of the unfunded pension liability.

The Director of Finance shall prepare and present to the City Council interim revenue and expenditure trends to allow evaluation of potential discrepancies from budget assumptions.

The City Council shall avoid committing to new spending for operating or capital improvement purposes until an analysis of all current and future cost implications is completed and presented to it.

Section 2. Operating Management Policies
The Director of Finance is primarily responsible for the development, implementation, and evaluation of all financial management policies and procedures. However, all departments will participate in the responsibility of meeting policy goals, budget goals, and ensuring the long-term financial health of the City.

Future work plans, program initiatives, and performance indicators will be developed to reflect current policy directives, projected resources, and future service requirements.

The budget process is intended to weigh all competing requests for City resources within expected fiscal constraints. Requests for new, ongoing programs made outside the budget process will be discouraged.

The City will endeavor to avoid budgetary and accounting procedures that balance the current budget at the expense of future budgets.

Budget development will use strategic multi-year fiscal planning, conservative revenue forecasts, and program-based cost accounting. The process will include a diligent review of programs by staff, the Director of Finance, and City Council.

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Utilization of a program budget format will provide a basis for evaluation of service and other impacts of potential increases or decreases in funding.

Revenues will not be dedicated for specific purposes, unless required by law or GAAP. All non-restricted revenues will be deposited in the General Fund (or other designated fund as approved by the Director of Finance) and appropriated prior to expenditure/expense.

Current revenues will fund current expenditures and a diversified and stable revenue system will be developed and maintained to protect programs from short-term fluctuations in any single revenue source.

Current operating expenditures for all fund types will include all allocable overhead operating costs. For the most part, these expenses will be charged to individual budget program elements as internal service fund charges. Included within the allocated service charges will be funding adequate to maintain the approved capital program (unless financed through other debt instruments).

City staff shall strive to identify entrepreneurial solutions to recover costs of operating programs.

The City shall strive to avoid returning to the City Council for new or expanded appropriations. Exceptions may include emergencies, unforeseen impacts, midyear adjustments, or new opportunities.

Addition of personnel will only be requested to meet program initiatives and policy directives: after service needs have been thoroughly examined and it is substantiated that additional staffing will result in increased revenue or enhanced operating efficiencies. To the extent feasible, personnel cost reductions will be achieved through attrition.

All non-enterprise user fees and charges will be examined or adjusted every year and the City shall endeavor to undergo a thorough review to determine the 100% direct and indirect cost of service recovery rate at least every five to seven years. The Council will strive to obtain 100% cost recovery rates, but will reserve the right to recover less as appropriate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by the City Council following public review, each year.

Equipment replacement will be accomplished through a life cycle of funding mechanism and in some instances, the use of a “rental” rate structure. The rates will be revised annually to ensure that charges to operating departments are sufficient for operation and replacement of vehicles and other capital equipment (fleet, computers, phones, and copier systems). The City shall endeavor to maintain adequate cash reserves to fund 100% replacement of capital equipment. Replacement costs will be based upon equipment lifecycle developed by each department and approved by the Director of Finance.

Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs. Programs financed with grant monies will be budgeted in separate cost centers, and the service program will be adjusted to reflect the level of available funding. In the event of reduced grant funding, City resources will be substituted only after all program priorities and alternatives are considered.

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Revenue and expenditure forecasts will be prepared by the Director of Finance to examine the City’s ability to absorb operating costs due to changes in the economy, service demands, and capital improvements. The forecast will be updated at least annually and include an outlook of five years or more. The Director of Finance will prepare and present these estimates to the City Council at least once a year.

Alternative means of service delivery will be evaluated to ensure that quality services are provided to our citizens at the most competitive and economical cost. Departments, in cooperation with the City Manager, Director of Finance, and Human Resources, will identify all activities that could be provided by another source and review options/alternatives to current service delivery. The review of service delivery alternatives and the need for the service will be performed annually or on an “opportunity” basis.

Cash and investment programs will be maintained in accordance with the Government Code and the adopted investment policy, and will ensure that proper controls and safeguards are maintained. City funds will be managed in a prudent and diligent manner with an emphasis on safety of principal, liquidity, and financial return on principal, in that order. The City Treasurer and the Director of Finance, at least annually, shall recommend necessary revisions, if any, to the investment policy to the City Council. In addition to liquidity requirements, the City Treasurer and Director of Finance will also consider the appropriateness of investment decisions vis-à-vis debt management. Pursuant to Government Code Section 53607 and through the annual approval of the financial policies, the City Council is providing delegation of authority to the City Treasurer to invest or reinvest surplus funds, and to sell or exchange securities so purchased for and on behalf of the City, for the one‐year period commencing each July 1.

The City, through the Director of Finance and the Finance Department, will follow an aggressive, consistent, but sensitive policy of collecting revenues, with proper internal controls, to meet the needs of the City and follow all applicable state and federal laws.

Section 3. Capital Management Policies
A five-year Capital Improvement Plan (CIP) will be developed and updated annually, including anticipated funding sources. Capital improvement projects are defined as infrastructure or equipment purchases or construction which results in a capitalized asset and having a useful (depreciable) life of two years or more.

The CIP will attempt to include adequate funding to support repair and replacement of deteriorating infrastructure and avoidance of a significant unfunded liability.

Proposed capital projects will be considered through the City budget development process and reviewed and prioritized by a cross-departmental team regarding reasonable cost estimates (design, capital, and operating) as well as the City Manager for overall consistency with the City’s goals and objectives. The Director of Finance will then identify financing sources for the projects prioritized by the City Manager and City Council. Prior to adoption by the City Council, the CIP will be reviewed by the Planning Commission for conformity with the General Plan as required by California Government Code Section 65103.

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Capital project contract awards will include a fiscal impact statement disclosing the expected operating impact of the project and when such cost is expected to occur.

Pay-as-you-go Capital Improvement Plan financing should account for a minimum of 50 percent of all capital improvement projects for each five-year planning period. Pay-as-you-go financing is defined as all sources of revenue other than City debt issuance, i.e., fund balance contributions, developer contributions, grants, endowments, etc. Pay-as-you-go financing should generally be considered as the preferred option.

However, the potential for debt issuance that provides additional economic and/or strategic values could be considered as recommended by the Director of Finance.

The City, through the Director of Finance and the Finance Department, shall endeavor to apply restricted funds (i.e., in-lieu parking, gas tax funds, or existing bond proceeds) to capital projects before using “unrestricted” funds.

Section 4. Reserve Policies
Governmental Funds (General, Infrastructure, Special Revenue) All fund designations and reserves will be evaluated annually by the Director of Finance for long-term adequacy and use requirements in conjunction with development of the City’s balanced five-year financial plan. In adhering to GAAP, the City follows appropriate Governmental Accounting Standards Board (GASB) Statements, one of which, No. 54 (GASB 54), addresses Fund Balance Reporting. Compliance with GASB 54 requires use of the terms below to define various components of fund balance. Reserves are presented in the Annual Comprehensive Financial Report (ACFR) in the Financial Statement section designated using the definitions below. The City’s ACFR is available on the City’s website at https://www.beverlyhills.org/328/Annual-Comprehensive-Financial-Report-AC.

For future reporting of City reserves, these terms shall be used to define what comprises the reserve. a) Nonspendable fund balance (inherently nonspendable) include the:
 Portion of net resources that cannot be spent because of their form, and  Portion of net resources that cannot be spent because they must be maintained intact. b) Restricted fund balance (externally enforceable limitations on use) include amounts subject to:
 Limitations imposed by creditors, grantors, contributors, or laws and regulations of other governments;
 Limitations imposed by law through constitutional provision or enabling legislation. i. The City’s Section 115 Trust for OPEB and pension liabilities falls into this category.

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c) Committed fund balance (self-imposed limitation set in place prior to the end of the period):
 Limitation imposed at the highest level of decision making that requires formal action at the same level to remove. For the City, the City Council is the highest level of decision making.  Resources accumulated pursuant to stabilization arrangements would fit in this category only if the arrangement is specific regarding the circumstances when spending would be permitted, and those circumstances would need to be of a non-routine nature. i. The City’s economic/contingency reserves and budget stabilization reserves fall into this category.
d) Assigned fund balance (limitation resulting from intended use) consists of amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. Intent should be established by:
 The governing body itself (City Council), or
 A body (a budget or finance committee, for example) or designated official to which the governing body has delegated authority to assign amounts to be used for specific purposes. For the City, the Director of Finance is the designated official. i. This section includes encumbrances assigned for the procurement of goods and services. e) Unassigned fund balance (residual net resources) is the:
 Total fund balance in excess of nonspendable, restricted, committed, and assigned fund balance.

General Fund Economic/Contingency Reserve (Committed)
It is a goal of the City to obtain and maintain a general operating reserve in the form of cash and investments, of at least 40% of operating expenditures. The first 25% of operating expenditures shall be considered a contingency reserve to cover normal seasonal cash flow variations, as well as unforeseen emergency or catastrophic impacts upon the City. The remaining 15% of operating expenditures may be used for short term economic investment in the community when justified by projected financial return to the City and specifically authorized by the City Council, upon recommendation of the Director of Finance.

The Director of Finance will calculate the annual reserves based on year-end actual expenditures in conjunction with the Annual Comprehensive Financial Report (ACFR). Should economic or other conditions result in decreased total annual expenditures as compared to the immediately preceding year, reserves shall remain at the prior year’s reserve level and shall not be decreased without approval of the City Council.

Budget Stabilization Reserve (Committed)
Beginning in 2013, the City Council also began setting aside additional funds from its operating surplus as an additional budget stabilization fund for meeting future unexpected revenue shortfalls. The Director of Finance shall endeavor to evaluate and propose changes to the budget stabilization reserve based on additional one-time revenue received and annual surplus revenues for City Council approval.

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Internal Service Funds
In addition to cash specifically maintained in the General Fund, the City recognizes the following cash reserve resources as being available to meet sudden negative fiscal impacts in the short term:
 Equipment Replacement Fund (Fund 400)
 Capital Assets Fund (Fund 405)
 Information Technology Fund (Fund 410)
 Compensated Absences Liability Fund (Fund 441)
 Liability Insurance Fund (Fund 450) (only in excess of required reserves)  Workers’ Compensation Fund (Fund 460) (only in excess of required reserves)  Policy, Administration, and Legal Fund (Fund 480)
 Vehicle Replacement Fund (Fund 490)
Sufficient reserves shall be maintained in internal service funds to prevent extended disruption of service in the event of natural disasters or other interruptions of revenue collections. Where more than sufficient reserves are being maintained, the excess can be used to offset current expenditure needs. Determination of adequate or excess reserves will be reviewed annually by the Director of Finance and guided by the following:

Self-Insurance Reserves (liability, workers’ compensation, other): The Director of Finance shall endeavor to maintain these reserves at a level which, together with purchased insurance policies, will adequately cover the City’s property, liability, and health benefit risk from one-time fluctuations. A qualified actuarial firm shall be retained on, at minimum, a biennial basis in order to recommend appropriate funding levels. The City shall endeavor to maintain cash reserves equal to 75% of the probable and reasonably estimable claim liabilities and 50% of the incurred-but-not-reported (IBNR) amount determined by the actuary. To lessen the impact of short-term annual rate change fluctuation, City management may implement one-time fund transfers (rather than department rate increases) when funding shortfalls appear to be due to unusually short and non-recurring factors.

The City shall endeavor to maintain reserves for systematic replacement of fleet vehicles, building components and systems, computers and related equipment, and operational contingencies based upon lifecycle replacement plans to ensure adequate fund balance required. Operating departments will be charged over the useful life of the asset used. The City shall endeavor to stabilize funding by building reserves equal to the anticipated replacement cost of each asset class at the end of its useful life.

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Enterprise Fund Reserves
Enterprise Funds include the Water, Parking Operations, Solid Waste, Wastewater, and Stormwater funds.

Generally, user fees and charges will be examined periodically to ensure that they recover all direct and indirect costs of service, provide for capital improvements and maintenance, and maintain adequate reserves. Secondarily, maintenance of cash reserves will provide a de facto rate stabilization plan. Rate increases shall be approved by the City Council following formal noticing and public hearing. Rate adjustments for enterprise operations will be based on five-year financial plans unless a conscious decision is made to the contrary. The target level of operating cash reserves shall be 50% of annual operating expenses. For the Stormwater fund, as a result of compliance requirements, General Fund subsidies are used in-lieu of a reserve.

One-time Additional Revenue
The City should endeavor to use one-time additional revenue to further increase reserves or for one-time expenditures, or to reduce debt or other liabilities. The funds should not to be used for ongoing operations.

For purposes of this policy, examples of one-time additional revenue include (but are not limited to):
 Lump sum (net present value) savings from debt restructuring  Sale of City-owned real estate
 Unexpected revenue (e.g. litigation settlement)
 Receipts from approved development agreements
 Contributions and gifts
Section 5. Audit Policies
An annual audit will be performed by an independent public accounting firm with an audit opinion to be included with the City’s published Annual Comprehensive Financial Report (ACFR).

The City Council will maintain a standing committee of its members to serve as the Audit and Finance Committee to provide oversight and review of the annual and special audits of the City. The Committee will meet at least twice annually with the City’s independent auditor, once for a pre-audit meeting, and once for a review of the final audit results.

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Section 6. Debt Management Policies
These Debt Management Policies are intended to comply with Government Code Section 8855(i), (j), and (k) effective on January 1, 2017, and shall govern all debt undertaken by the City. These Debt Management Policies apply to the City and all subordinate entities of the City for which the City Council serves as the governing board.

The City hereby recognizes that a fiscally prudent debt policy is required in order to:
• Maintain the City’s sound financial position.
• Ensure the City has the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses.
• Protect the City’s credit-worthiness and maintain and, if possible, improve the current bond rating(s), in order to minimize borrowing costs and preserve access to credit. • Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City.
• Ensure that the City’s debt is consistent with the City’s planning goals and objectives and capital improvement program or budget, as applicable.

Purposes for Which Debt May Be Issued
Long-term Debt. Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and operated by the City. (a) Long-term debt financings are appropriate when the following conditions exist:
• When the project to be financed is necessary to provide basic services. • When the project to be financed will provide benefit to constituents over multiple years. • When total debt does not constitute an unreasonable burden to the City and its taxpayers and ratepayers.
• When the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring. (b) Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses. However, the City may consider issuance of debt for working capital purposes under specific circumstances if deemed advisable by the City Council and Director of Finance.

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(c) The City may use long-term debt financings subject to the following conditions:
• The project to be financed must be approved by the City Council. • The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the infrastructure improvement, with the average (weighted) bond maturities at or below thirty years, unless otherwise authorized by the City Council.
• The City estimates that sufficient revenues will be available to service the debt through its maturity.
• The City determines that the issuance of the debt will comply with the applicable state and federal law.

Short-term debt. Short-term debt may be issued to provide financing for the City’s operational cash flows in order to maintain a steady and even cash flow balance. Short-term debt may also be used to finance short-lived capital projects; for example, the City may undertake lease-purchase financing for equipment.

Financings on Behalf of Other Entities. The City may also find it beneficial to issue debt on behalf of other governmental agencies or private third parties in order to further the public purposes of City. In such cases, the City shall take reasonable steps to confirm the financial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein.

Types of Debt
For purposes of these Debt Management Policies, “debt” shall be interpreted broadly to mean bonds, notes, certificates of participation, financing leases, or other financing obligations. The use of the term “debt” in these Debt Management Policies shall be solely for convenience and shall not be interpreted to characterize any such obligation as an indebtedness or debt in contravention of any statutory or constitutional debt limitation.

The following types of debt are allowable under these Debt Management Policies:
• General obligation bonds, which are supported by property tax revenue which grows in proportion to the City’s assessed valuation and/or property tax rate increases, may be utilized if/when authorized by voters.
• Bond or grant anticipation notes.
• Lease revenue bonds, certificates of participation and lease-purchase transactions. • Other revenue bonds and certificates of participation. • Tax and revenue anticipation notes.
• Land-secured financings, such as special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes.
• Tax increment financing to the extent permitted under state law.

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• Conduit financings, such as financings for affordable rental housing and qualified 501(c)(3) organizations.

The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of these Debt Management Policies.

Debt shall be issued as fixed rate debt unless the City makes a specific determination as to why a variable rate issue would be beneficial to the City in a specific circumstance.

Relationship of Debt to Capital Improvement Program and Budget The City is committed to long-term capital planning. The City intends to issue debt for the purposes stated in these Debt Management Policies and to implement policy decisions incorporated in the City’s capital budget and the capital improvement plan.

The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues. The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.

The City shall integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes.

The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.

The City shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its General Fund.

New debt issues, and refinancing of existing debt, must be analyzed for compatibility within the City’s overall financial planning and approved by the Director of Finance. The review shall not be limited to cash flow analysis, potential for unexpected revenue surprises, and the maintenance of the City’s bond ratings.

Annual debt service shall not produce an inordinate impact upon future operations.

The Director of Finance will ensure that City debt service costs within the General Fund should not exceed 15% of the City’s operating revenue in order to control fixed costs and ensure expenditure flexibility.

Improvement District, Enterprise Fund, Parking Authority and general obligation debt service is not included in this calculation because it is paid by district property owners, service users or taxpayers and is not an obligation of future General Fund revenues.

A ratio of current assets to current liabilities of at least 2/1 will be maintained to ensure the City’s ability to pay short-term obligations.

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Utility rates will be set, at a minimum, to ensure the ratio of revenue to debt service meets our bond indenture requirement (generally a minimum of 125% of debt service). In addition, higher revenue to expense ratios may be needed to secure the City’s bond rating, as determined by the Director of Finance.

When calculating debt services coverage for internal purposes, the minimum pay-as-you-go capital expense for each enterprise fund will be considered a part of the operating costs to be covered by pre-debt service revenues. The City goal will be to maintain the required debt service coverage with this additional cost factored into the equation. Use of a 5-year budget projection, including capital project requirements, will provide assurance that all needs are considered by the Director of Finance, the Public Works Commission and City Council as revenue requirements are considered.

Policy Goals Related to Planning and Objectives
The City is committed to long-term financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The City intends to issue debt for the purposes stated in this Policy and to implement policy decisions incorporated in the City’s annual operations budget.

It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.

When refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non-financial policy considerations, (i) minimum net present value debt service savings equal to or greater than 3.0% of the refunded principal amount, and (ii) present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.

Internal Control Procedures
When issuing debt, in addition to complying with the terms of these Debt Management Policies, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.

The City will periodically review the requirements of and will remain in compliance with the following:
• Any continuing disclosure undertakings pursuant to SEC Rule 15c2-12 and Government Code Section 8855 (i), (j), and (k),
• Any federal tax compliance requirements, including without limitation arbitrage and rebate compliance, related to any prior bond issues, and
• The City’s investment policies as they relate to the investment of bond proceeds.

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June 23, 2026

It is the policy of the City to ensure that proceeds of debt are spent only on lawful and intended uses.

Proceeds of debt will be held either (a) by a third-party trustee, which will disburse such proceeds to the City upon the submission of one or more written requisitions, or (b) by the City, to be held and accounted for in a separate fund or account, the expenditure of which will be carefully documented by the City.

Financial Obligations
In February 2019, the Securities and Exchange Commission (the “SEC”) adopted amendments to Rule 15c2- 12, which governs primary and secondary market disclosure, to cover “financial obligations” (as further described below, this term largely refers to privately placed debt). The amendments require the City to disclose to the City’s public bond investors the following items within 10 business days:
(i) incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material; and (ii) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties.

With respect to event (i) above, a material amendment to a previously-existing financial obligation may be treated as the “incurrence” of a new financial obligation. The amendments define a “financial obligation” as: (a) a debt obligation; (b) a derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) a guarantee of (a) or (b). Financial obligations do not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with Rule 15c2-12.

The Director of Finance will maintain an electronic file to keep track of the execution by the City and current status of any agreement or other obligation which might constitute a “financial obligation” for purposes of Rule 15c2-12. Amendments to existing agreements or obligations which relate to covenants, events of default, remedies, priority rights or other similar terms should also be tracked. Information to be tracked includes the initial and outstanding principal amount, the date of incurrence, significant financial covenants, the dates and substance of any amendments and contact information for the holder of the obligation.

In addition, the Director of Finance will track communications from the holders of financial obligations in order to determine whether an event which reflects financial difficulties of the City has occurred.

The Director of Finance should consult with the City’s disclosure counsel when agreements which might constitute “material” financial obligations are entered into or amended, or when the City receives notices from the holders of financial obligations, in order to determine whether disclosure to the holders of the City’s publicly sold bonds is warranted.

Docusign Envelope ID: C13E5D57-0E4A-8BB2-8176-69B878AB9AA7 City of Beverly Hills
Financial Policies
June 23, 2026

The types of agreements or other obligations which could constitute “financial obligations” and which could need to be reported on EMMA include:

1. Bank loans or other obligations which are privately placed.

2. State or federal loans.

3. Commercial paper or other short-term indebtedness for which no offering document has been filed on with the Municipal Securities Rulemaking Board.

4. Letters of credit, surety policies or other credit enhancement with respect to the City’s publicly offered debt.

5. Letters of credit, including letters of credit which are provided to third parties to secure the City’s obligation to pay or perform (an example of this is a standby letter of credit delivered to secure the City’s obligations for performance under a mitigation agreement).

6. Capital leases for property, facilities, fleet or equipment.

7. Agreements which guarantee the payment or performance obligations of a third party (regardless of whether the agreements constitute guarantees under California law).

8. Payment agreements which obligate the City to pay a share of another public agency’s debt service (for example, an agreement with a joint powers agency whereby the City agrees to pay a share of the joint powers agency’s bonds, notes or other obligations).

9. Service contracts with a public agency or a private party pursuant to which the City is obligated to pay a share of such public agency or private party’s debt service obligation (for example, certain types of public-private partnership arrangements).

10. Any agreement the payments under which are not characterized as an operation and maintenance expenses for accounting purposes if such agreement could be characterized as the borrowing of money.

The Director of Finance will continue to work with the City Attorney and the City’s disclosure counsel to refine the definition of “financial obligation” going forward based on future SEC guidance.

Secondary Market Disclosure
On February 7, 2020, the SEC released a staff legal bulletin (the “Bulletin”) concerning secondary market disclosure in the municipal bond market. The Bulletin included SEC staff views on a variety of matters, including but not limited to, the applicability of federal securities law to public agency websites, reports delivered to governmental and institutional bodies and statements made by public officials including elected board members. Documents, reports and other written statements of the City which contains current financial and operational conditions of the City will be included in a section of the City website that is appropriately identified. The Director of Finance will consult with the City’s disclosure counsel to ensure that financial and operational information about the City which is publicly available contains appropriate disclaimers to the effect that such information speaks only as of its date and that investors should not rely on such information, and directing investors to the City’s disclosures on the Municipal Securities Rulemaking Board’s EMMA website.

Docusign Envelope ID: C13E5D57-0E4A-8BB2-8176-69B878AB9AA7 Certificate Of Completion
Envelope Id: C13E5D57-0E4A-8BB2-8176-69B878AB9AA7 Status: Sent Subject: Complete with Docusign: Resolution - CITY Operating Budget - FY26-27.pdf Source Envelope:

Document Pages: 18 Signatures: 2 Envelope Originator:

Certificate Pages: 2 Initials: 0 Sivan Levin
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.181
Record Tracking
Status: Original
6/15/2026 11:34:16 AM
Holder: Sivan Levin
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Jeff S. Muir
[email protected]
Director of Finance
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.181
Sent: 6/15/2026 11:35:07 AM
Viewed: 6/15/2026 11:37:18 AM
Signed: 6/15/2026 11:37:27 AM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Laurence S. Wiener
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.235.180
Sent: 6/15/2026 11:35:08 AM
Viewed: 6/15/2026 11:59:38 AM
Signed: 6/15/2026 12:09:21 PM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
Security Level: Email, Account Authentication
(None)
Sent: 6/15/2026 12:09:22 PM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Craig A. Corman
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Signer Events Signature Timestamp
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via Docusign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Jon Giardiello
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/15/2026 11:35:06 AM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Shani Parker
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/15/2026 11:35:07 AM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
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Envelope Sent Hashed/Encrypted 6/15/2026 11:35:07 AM
Payment Events Status Timestamps
ƚƚĂĐŚŵĞŶƚ3
1 B0785-0001\3262661v1.doc
RESOLUTION NO. PA-R-26-

RESOLUTION OF THE PARKING AUTHORITY OF THE

CITY OF BEVERLY HILLS APPROVING THE BUDGET
AND FINANCIAL POLICIES FOR THE 2026-27 FISCAL

YEAR AND APPROPRIATING FUNDS THEREFOR
The Board of the Parking Authority of the City of Beverly Hills does resolve as follows:

Section 1. That certain document entitled “Parking Authority of the City of Beverly Hills Fiscal Year 2026-27 Budget”, a copy of which is on file in the office of the Secretary of the Parking Authority, which may hereafter be amended by the Board of the Parking Authority, is hereby approved as the budget for the Parking Authority of the City of Beverly Hills for the Fiscal Year 2026-27, beginning July 1, 2026.

Section 2. Appropriations in the amount not to exceed $26,207,000 are authorized for the purpose of carrying on the business of the Parking Authority.

Section 3. The Executive Director of the Parking Authority (“Executive Director”) or their designee may make budget adjustments to accounts, provided that the Parking Authority is within its approved budget.

Section 4. The Executive Director or their designee may appropriate up to $300,000 during the Fiscal Year from Parking Authority balances to any accounts as long as it meets the purposes of the Authority. In addition, the Executive Director or their designee may also authorize appropriations during the Fiscal Year to fulfill the Parking Authority’s obligations with respect to:
• Non-discretionary costs, including but not limited to:
o Debt service and related interest expense
o Credit card acceptance service charges
• Net neutral expenditures, including but not limited to:

Docusign Envelope ID: 5D215DFB-22C6-8B63-80AF-1EA82935A506 2 B0785-0001\3262661v1.doc
o Reimbursed/reimbursable costs
o Pass through charges
o Expenses incurred as a percentage of revenue generated An annual report shall be made to the Board of the Parking Authority describing each appropriation, and the reason therefor.

Section 5. The Board of the Parking Authority ratifies the prior payment of budgeted demands from those funds which have been certified or approved by the Executive Director or their designee and may appropriate funds for non-budgeted items, and any such appropriation for a non-budgeted item shall constitute an approval to issue a warrant in payment of a proper demand or demands therefor.

Section 6. The Board of the Parking Authority hereby adopts the Comprehensive Financial Policies of the Parking Authority for Fiscal Year 2026-27, as attached to this resolution.

Section 7. In the case of fee-based activities, if the revenues for such programs exceed the amount budgeted, the Board of the Parking Authority hereby authorizes the Executive Director or their designee to increase the appropriation of said activity in the same amount of the increased revenue.

Section 8. The Executive Director or their designee is authorized to make such other revisions including individual line-item appropriations, changes in summaries, totals, grand totals, and other portions of the budget document as necessary to reflect and implement the programs specified in this resolution, and in full accordance with the direction provided by the Board of the Parking Authority up until the adoption of this resolution.

Docusign Envelope ID: 5D215DFB-22C6-8B63-80AF-1EA82935A506 3 B0785-0001\3262661v1.doc
Section 9. The Secretary of the Parking Authority shall certify to the adoption of this resolution and shall cause this resolution and their certification to be entered in the Book of Resolutions of the Board of the Parking Authority.

Adopted:
_______________________________
CRAIG A. CORMAN
Chairman of the Board
Parking Authority of the
City of Beverly Hills
ATTEST:
(SEAL)

HUMA AHMED
Secretary of the Parking Authority
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER NANCY HUNT-COFFEY
General Counsel Executive Director
Docusign Envelope ID: 5D215DFB-22C6-8B63-80AF-1EA82935A506 Parking Authority of the City of Beverly Hills
Financial Policies
June 23, 2026

Parking Authority of the City of Beverly Hills
Financial Policies
The Parking Authority of the City of Beverly Hills (“Authority”) is a blended component unit of the City of Beverly Hills (“City”) under the criteria of board appointment (the City Council acts as the governing body of the Authority) and financial burden on the primary government. As a result, the City’s adopted Financial Policies listed below shall apply to the Authority, as applicable. Authority financial statements are blended into the City’s Annual Comprehensive Financial Report (ACFR).

Section 1. Financial Reporting Policies
Section 2. Operating Management Policies
Section 3. Capital Management Policies
Section 4. Reserve Policies
Section 5. Audit Policies
Section 6. Debt Management Policies
Docusign Envelope ID: 5D215DFB-22C6-8B63-80AF-1EA82935A506 Certificate Of Completion
Envelope Id: 5D215DFB-22C6-8B63-80AF-1EA82935A506 Status: Sent Subject: Complete with Docusign: Resolution - PARKING AUTHORITY Operating Budget - FY26-27.pdf Source Envelope:

Document Pages: 4 Signatures: 1 Envelope Originator:

Certificate Pages: 2 Initials: 0 Sivan Levin
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.181
Record Tracking
Status: Original
6/15/2026 11:24:20 AM
Holder: Sivan Levin
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Laurence S. Wiener
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.235.180
Sent: 6/15/2026 11:25:37 AM
Viewed: 6/15/2026 12:10:19 PM
Signed: 6/15/2026 12:11:31 PM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
Security Level: Email, Account Authentication
(None)
Sent: 6/15/2026 12:11:32 PM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Craig A. Corman
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via Docusign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Jon Giardiello
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/15/2026 11:25:35 AM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Shani Parker
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/15/2026 11:25:36 AM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 6/15/2026 11:25:36 AM
Envelope Updated Security Checked 6/15/2026 11:33:53 AM Envelope Updated Security Checked 6/15/2026 11:33:53 AM Envelope Updated Security Checked 6/15/2026 11:33:53 AM Envelope Updated Security Checked 6/15/2026 11:33:53 AM Envelope Updated Security Checked 6/15/2026 11:33:54 AM Envelope Updated Security Checked 6/15/2026 11:33:54 AM Payment Events Status Timestamps