19 September 8, 2026
Honorable Mayor and City Council
City of Long Beach
California
RECOMMENDATION:
Recommendation to receive supporting documentation into the record, conclude the public hearing, and take the actions necessary to adopt the Fiscal Year 2027 budget as listed in Attachment A. (Citywide)
DISCUSSION
On July 30, 2026, the City Manager’s Proposed Budget for Fiscal Year 2027 (FY 27) and the Mayor’s Recommendations were delivered by Mayor Richardson to the City Council and the community for consideration. The City Council budget hearings were held on August 4, August 11, August 18, August 25, September 1, and September 8, 2026. Additionally, Budget Oversight Committee (BOC) meetings were held on July 28, August 4, August 11, August 17 (public comment only), August 18, August 25, September 1, and September 8. Earlier, there was a Budget Study Session held on April 7 that discussed the City’s fiscal outlook and strategic goals and priorities in preparing the FY 27 Proposed Budget. Six citywide community meetings were held in the months of January and February, and five in August, at which community priorities for, and details of, the upcoming FY 27 Budget were discussed. Thus, there were 25 scheduled opportunities for public feedback, deliberation, and input. Additionally, input was solicited through the Long Beach Budget Priority Survey from December 2025 through February 2026 and the Digital Comment Card in August in English, Spanish, Khmer, and Tagalog, to obtain feedback on desired City priorities and input on the FY 27 Proposed Budget. Both the Budget Priority Survey and the Digital Comment Card were promoted on the City’s website, Go Long Beach Newsletter, X, Instagram, Facebook, and at community meetings and were available until Friday, August 14, 2026. In addition, printed flyers with the community meeting dates, times, and locations were available in multiple languages at City parks and in the City Council Chambers during Budget Oversight Committee meetings, Budget Hearings, and City Council meetings and were available at all local library branches.
At the conclusion of the September 8, 2026 hearing, the City Council will amend the Proposed FY 27 Budget as deemed appropriate and adopt the proposed budget as amended.
As part of the FY 27 Budget Adoption, there are two Ordinances to be considered for approval in Attachment A. The first Ordinance amends the Departmental Organization of the City (A-6).
The second is the Appropriations Ordinance (A-16), which officially appropriates the funding for the Adopted Budget (approved in A-3) and authorizes expenditures in conformance with the Financial Management
411 W. Ocean Boulevard, 6th Floor, Long Beach, CA 90802 (562) 570-6425
Honorable Mayor and City Council
September 8, 2026
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Adopted Budget. For the second Ordinance to become effective on October 1, 2026, the City Council must first declare an emergency to exist before adopting the Ordinance (A-15).
There are also seven Resolutions to approve the Master Fees and Charges Schedule (A-4); amend the Salary Resolution (A-7); approve the budget for the Long Beach Harbor Department (A-8); approve fixing rates and charges for Gas (A-9) and Water and Sewer (A-10) to all customers; approve the budget for the Public Utilities Department (A-11); and establish the Gann Appropriations Limit (A-14). There are also the following motions: approve the Mayor’s Recommendations (A-1); approve the BOC Proposed Funding Recommendations (A-2); amend the Proposed FY 27 Budget (A-3); approve the FY 27 One-Year Capital Improvement Program (A-5); approve the FY 27 Budget for the Long Beach Community Investment Company (A-12); and approve the Harbor Fund Group transfer (A-13).
This matter was reviewed by Deputy City Attorney Ashleigh Stone on August 17, 2026, and by Budget Manager Rebecca Bernstorff on August 7, 2026.
TIMING CONSIDERATIONS
In accordance with the City Charter, the Proposed FY 27 Budget must be adopted by September 15, 2026. Should the City Council fail to adopt the budget by that date, the City Manager’s Proposed FY 27 Budget will be deemed the budget for the 2027 Fiscal Year. The Mayor has five calendar days from the City Council adoption of the budget to exercise veto authority. The City Council would then have until September 30, 2026, to override any veto actions by the Mayor with a two-thirds supermajority vote (six Councilmembers).
FISCAL IMPACT
The City Charter requires that the Appropriations Ordinance govern and control the expenditure and commitment amounts stated therein relating to City departments, offices, and agencies during each fiscal year. The total Proposed FY 27 Budget for all departments and fund groups is $5,355,483,196, which consists of $4,048,756,709 in new appropriation and $1,306,726,487 in estimated carryover from FY 26 for multi-year grants and projects. Attachments B, C, and D provide the financial overview by Fund Group, Department, and Citywide revenue by Fund Group, respectively.
The Appropriations Ordinance, included as Attachment A-16, totals $3,865,251,519 for all Fund Groups except Harbor, Sewer, Water, and Gas Fund Groups, and $3,885,059,018 for all departments except Harbor and Public Utilities Departments. The $19,807,499 difference between Fund Groups and Departments is due to general City indirect costs and other citywide activities such as debt service budgeted in the Financial Management Department but charged to the Harbor, Water, Sewer, and Gas Fund Groups, which are not included in the Appropriations Ordinance by Fund Group.
The proposed Harbor, Water, Sewer, and Gas Fund Group budgets are in separate City Council Resolutions included as Attachment A-8 and A-11, respectively, and total $1,490,231,677. This total figure reflects what is in the budget system, which may vary from the figures included in the resolutions, which allow for adjustments to be made by the City Council to the adopted budget Honorable Mayor and City Council
September 8, 2026
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in an amount not to exceed 5 percent. The final budgets are $1,051,157,365 for the Harbor Fund Group, $198,474,127 for the Water Fund Group, $62,446,765 for the Sewer Fund Group, and $178,153,420 for the Gas Fund Group. The Board of Harbor Commissioners adopted the budget for the Harbor Department by minute order on June 22, 2026. The Board of Public Utilities Commissioners adopted the budget for the Public Utilities Department by Resolution on June 4, 2026.
User fees and charges in the Master Fees and Charges Schedule, included as Attachment A-4, have been adjusted due to changes in service and other factors. For details regarding these proposed new fees and adjustments, please see the List of Proposed Fees Adjustments for FY 27 that has been incorporated as Exhibits B and C to the Master Fees and Charges Resolution.
Other requested City Council actions include:
Approving the FY 27 One-Year Capital Improvement Program (CIP) budget, included as Attachment A-5, which is contained within the Appropriations Ordinance. Amending the Departmental Organization Ordinance included as Attachment A-6. This amendment incorporates changes to departments, bureaus, and divisions for FY 27.
These organizational changes are necessary to implement changes reflected in the Proposed FY 27 Budget. A redline version of the changes is also provided. Adopting the amended Salary Resolution for FY 27, which creates and establishes positions of employment while fixing and prescribing the compensation for officers and employees, and is included as Attachment A-7. The Department of Human Resources will return to City Council at a later date for approval of the Salary Schedule to ensure accuracy and inclusion of new/updated classifications.
Adopting the FY 27 Long Beach Community Investment Company (LBCIC) budget, included as Attachment A-12. The LBCIC budget is prepared annually for City Council approval and is a subset of the Housing Development Fund. The LBCIC oversees the delivery of housing and neighborhood revitalization services. The LBCIC approved its FY 27 Budget on June 10, 2026.
Adopting a Resolution, included as Attachment A-14, establishing the Gann Appropriations Limit (Limit) for general purpose expenditures. In November 1979, the voters of the State of California (State) approved Proposition 4, also known as the Gann Initiative (Initiative). The Initiative places certain limits on the amount of tax revenue that can be appropriated each fiscal year. The Limit is based on actual appropriations during FY 79 and prevents overspending proceeds of taxes. Only those revenues that are considered as “proceeds of taxes” are subject to the Limit. The Limit is recalculated each fiscal year based on certain inflation and population factors provided by the State. The Proposed Budget includes tax revenue estimates that are at 47.94 percent of the 2026- 2027 Appropriations Limit and, therefore, do not exceed the Limit. The City Auditor reviews this calculation for conformance to the law.
Honorable Mayor and City Council
September 8, 2026
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After the City Manager delivered the Proposed FY 27 Budget to the Mayor, adjustments were made to complete the budget. These changes are shown in Attachments B, C, and D. Changes include the following:
1. An expense decrease of $9,129,161 and a revenue decrease of $9,129,161 in the Health and Human Services Department in the Health Fund Group to remove the expenditure and revenue budget associated with an appropriation increase for LA County Measure A approved by City Council on June 16, 2026. This action will ensure grant funds are budgeted correctly and not duplicated.
2. An expense decrease of $1,326,866 in the Public Works Department in the Refuse/Recycling Fund Group as a correction to transfer the General Liability MOU budget to the appropriate department.
3. An expense increase of $1,326,866 in the Energy and Environmental Services Department in the Refuse/Recycling Fund Group as a correction to align the General Liability MOU budget with the appropriate department.
4. An expense increase of $962,473 and a revenue increase of $962,472 in the Fire Department in the Debt Service Fund Group as a technical adjustment to service the department’s annual debt payments, offset by transfers from the General Fund.
The remaining changes were minor, technical adjustments made to various funds and departments resulting in no bottom-line changes at the fund level.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
Kevin Riper
Director
Financial Management
ATTACHMENTS