19.6 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 202 7 budget as listed in Attachment A. (Citywide)
DISCUSSION
On July 30, 2026, the City Manager’s Proposed Budget for Fiscal Year 202 7 (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 2 8, August 4, August 1 1, 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 2 7 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
Adopted Budget. For the second Ordinance to become effective on October 1, 202 6, 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 2 7 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 202 7 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, 202 6, 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 2 7 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
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, 202 6. 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 A djustments 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 2 7.
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 2 7, 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 2 7 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
After the City Manager delivered the Proposed FY 2 7 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 Environment al 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 $962,47 3 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
ATTACHMENT A
List of Requested Fiscal Year 2027 Budget Adoption Actions
1. Adopt the Mayor’s proposed budget recommendations, as amended, to the Proposed FY 27 Budget. (A-1)
2. Adopt the Budget Oversight Committee’s proposed funding recommendations, as amended, to the Proposed FY 27 Budget. (A-2)
3. Adopt the expenditures and revenues as identified in the Proposed FY 27 Budget, as amended. (A-3)
4. Adopt the Resolution amending the Master Fees and Charges Schedule for specified City services for Citywide fees and charges for the City of Long Beach. (A-4)
5. Approve the FY 27 One-Year Capital Improvement Program. (A-5)
6. Declare the Ordinance amending the Departmental Organization Ordinance read the first time and laid over to the next regular meeting of the City Council for final reading. (A-6)
7. Adopt the amended Salary Resolution for FY 27. (A-7)
8. Adopt the Resolution approving the FY 27 budget for the Long Beach Harbor Department as adopted by the Board of Harbor Commissioners on June 22, 2026. (A-8)
9. Adopt the resolution approving Resolution No. UT-1561, a resolution of the City of Long Beach Public Utilities Commissioners fixing rates and charges for the gas services to all customers. (A-9)
10. Adopt the resolution approving Resolution No. UT-1562 a resolution of the City of Long Beach Public Utilities Commissioners of the City of Long Beach fixing rates and charges for water and sewer services to all customers. (A-10)
11. Adopt the R esolution approving the FY 2 7 budget of the Long Beach Public Utilities Department as adopted by the Board of Public Utilities Commissioners on June 4, 2026. (A-11)
12. Adopt a motion approving the FY 27 budget for the Long Beach Community Investment Company in the amount of $7,299,655. (A-12)
13. Adopt a motion approving the e stimated transfer of $ 28,726,936 from the Harbor Fund Group to the Tidelands Operations Fund Group. (A-13)
14. Adopt the Resolution establishing the Gann Appropriations Limit for FY 27 pursuant to Article XIII (B) of the California Constitution. (A-14)
15. Declare an emergency to exist pursuant to City Charter Section 211 for the Appropriations Ordinance for FY 27, creating and establishing the fund groups of the Municipal Government and appropriating money to and authorizing expenditures from said funds and for said fiscal year. (A-15)
16. Declare the Appropriations Ordinance for FY 27 , cre ating and establishing the fund groups of the Municipal Government and appropriating money to and authorizing expenditures from said funds and for said fiscal year as an Emergency Ordinance, read, and adopted as read and laid over to the next regular meeting of the City Council for final reading. (A-16)
ATTACHMENT B
FY 27 PROPOSED FY 26 ESTIMATED FY 27
FUND GROUP EXPENDITURES CHANGES CARRYOVER** APPROPRIATIONS*** GENERAL FUND 738,554,895 - - 738,554,895 UPLAND OIL FUND 6,561,248 - - 6,561,248 GENERAL GRANTS FUND 15,917,111 - 20,245,402 36,162,512 POLICE & FIRE PUBLIC SAFETY OIL PROD ACT FUND 2,551,885 - - 2,551,885 HEALTH FUND 71,118,836 (9,129,161) 77,235,419 139,225,094 CUPA FUND 2,828,466 - 11,445 2,839,911 SPECIAL ADVERTISING & PROMOTION FUND 16,822,430 - - 16,822,430 HOUSING DEVELOPMENT FUND 9,433,725 - 29,706,703 39,140,428 BELMONT SHORE PARKING METER FUND 1,435,258 - - 1,435,258 BUSINESS ASSISTANCE FUND 770,438 - 4,890,849 5,661,288 COMMUNITY DEVELOPMENT GRANTS FUND 27,700,041 - 26,383,551 54,083,592 HOUSING AUTHORITY FUND 118,729,701 - 6,041,543 124,771,243 GASOLINE TAX STREET IMPROVEMENT FUND 13,587,205 - 20,058,344 33,645,549 CAPITAL PROJECTS FUND 221,942,955 - 882,723,971 1,104,666,926 SUCCESSOR AGENCY OPERATIONS 3,729,509 - 34,618,484 38,347,993 CIVIC CENTER FUND 25,776,180 - (1,051,053) 24,725,127 GENERAL SERVICES FUND 92,552,524 - 14,282,235 106,834,759 FLEET SERVICES FUND 61,271,560 - 5,983,979 67,255,540 INSURANCE FUND 92,923,549 - (630,841) 92,292,708 EMPLOYEE BENEFITS FUND 518,731,278 - - 518,731,278 TIDELANDS OPERATING FUND 117,889,250 - 111,710,821 229,600,071 TIDELANDS AREA FUNDS 62,780,584 - 41,143,293 103,923,877 TIDELANDS OIL REVENUE FUND 87,760,335 - - 87,760,335 RESERVE FOR SUBSIDENCE 100 - - 100 DEVELOPMENT SERVICES FUND 45,611,827 - 7,621,060 53,232,887 AIRPORT FUND 75,126,180 - 22,883,866 98,010,047 REFUSE/RECYCLING FUND 102,725,743 - 2,867,419 105, 593,162
SERRF FUND 644,262 - - 644,262
SERRF JPA FUND - - - - TOWING FUND 8,028,155 - - 8,028,155 DEBT SERVICE FUND 10,062,506 962,473 - 11,024,979 SUCCESSOR AGENCY - DEBT SERVICE 13,123,984 - - 13,123,984 TOTAL 2,566,691,720 (8,166,688) 1,306,726,487 3,865,251,519 FISCAL YEAR 2027 APPROPRIATIONS ORDINANCE BY FUND GROUP (Does not include Harbor, Water, Sewer, and Gas Fund Groups) *Please refer to the Fiscal Impact section of the City Council Letter for a general description of notable changes. **The total appropriations for all fund groups is $5,355,483,196. This is derived from the total FY 27 Appropriations amount above, plus $1,490,231,677, which reflects the Harbor, Water, Sewer, and Gas Fund Groups.
FY 27 Fund Attachment B 8/4/2026
ATTACHMENT C
FY 27 PROPOSED FY 26 ESTIMATED FY 27
DEPARTMENT EXPENDITURES CHANGES CARRYOVER** APPROPRIATIONS**** MAYOR AND COUNCIL 8,941,868 - (468) 8,941,400 CITY ATTORNEY 11,730,573 - (3,900) 11,726,673 CITY AUDITOR 4,172,890 - - 4,172,890 CITY CLERK 5,520,745 - - 5,520,745 CITY MANAGER 26,255,817 - 7,240,723 33,496,541 CITY PROSECUTOR 7,932,905 - 2,727,324 10,660,229 AIRPORT 74,183,211 - 22,351,496 96,534,707
DISASTER PREPAREDNESS &
EMERGENCY COMMUNICATIONS 16,868,163 - 609,472 17,477,635 COMMUNITY DEVELOPMENT 94,369,447 - 93,593,798 187,963,245
ECONOMIC DEVELOPMENT &
OPPORTUNITY 29,491,324 - 11,127,356 40,618,680 FINANCIAL MANAGEMENT*** 788,229,747 - 221,760,164 1,009,989,911 FIRE 201,325,235 962,473 742,330 203,030,037 HEALTH AND HUMAN SERVICES 200,549,219 (9,129,161) 86,617,961 278,038,019 HUMAN RESOURCES 57,525,011 - (680,530) 56,844,481 LIBRARY, ARTS, AND CULTURE 22,290,064 - 5,659,504 27,949,568
ENERGY AND ENVIRONMENTAL
SERVICES 188,652,802 1,326,866 1,458,814 191,438,481 PARKS, RECREATION AND MARINE 83,963,621 - 40,603,267 124,566,888 POLICE 344,416,604 - 7,969,135 352,385,738 POLICE OVERSIGHT 1,790,033 - - 1,790,033 PUBLIC WORKS 333,128,137 (1,326,866) 787,052,194 1,118,853,466 TECHNOLOGY & INNOVATION 85,161,802 - 17,897,848 103,059,650 TOTAL 2,586,499,219 (8,166,688) 1,306,726,487 3,885,059,018 ***The total appropriations for all fund groups is $5,355,483,196. This is derived from the total FY 27 Appropriations amount above, plus $1,470,424,178 for the Harbor and Utilities Departments not listed above. Note: figure may not account for rounding.
FISCAL YEAR 2027 APPROPRIATIONS ORDINANCE BY DEPARTMENT (Does not include Harbor and Utilities Departments)
*Please refer to the Fiscal Impact section of the City Council Letter for a general description of notable changes. **Department of Financial Management includes internal service charges that are contained in the resolutions of the Harbor, Water, Sewer, and Gas Fund Groups for accounting, budgeting and treasury functions, and other citywide activities such as debt service.
FY 27 Dept Attachment C 8/4/2026
ATTACHMENT D
FUND GROUP FY 27 PROPOSED
REVENUES
CHANGES* FY 27 PROPOSED
BUDGETED REVENUES
GENERAL FUND 749,242,545 - 749,242,545 UPLAND OIL FUND 9,898,351 - 9,898,351 GENERAL GRANTS FUND 10,996,418 - 10,996,418 POLICE & FIRE PUBLIC SAFETY OIL PROD ACT FUND 2,583,105 - 2,583,105 HEALTH FUND 71,189,594 (9,129,161) 62,060,433 SPECIAL ADVERTISING & PROMOTION FUND 15,667,986 - 15,667,986 HOUSING DEVELOPMENT FUND 10,869,756 - 10,869,756 BELMONT SHORE PARKING METER FUND 1,554,606 - 1,554,606 BUSINESS ASSISTANCE FUND 777,418 - 777,418 COMMUNITY DEVELOPMENT GRANTS FUND 20,301,535 - 20,301,535 GASOLINE TAX STREET IMPROVEMENT FUND 13,312,370 - 13,312,370 CAPITAL PROJECTS FUND 215,423,431 - 215,423,431 CIVIC CENTER FUND 26,293,638 - 26,293,638 GENERAL SERVICES FUND 92,371,001 - 92,371,001 FLEET SERVICES FUND 65,211,009 - 65,211,009 INSURANCE FUND 94,443,452 - 94,443,452 EMPLOYEE BENEFITS FUND 522,201,118 - 522,201,118 TIDELANDS OPERATING FUND 119,116,154 - 119,116,154 TIDELANDS AREA FUNDS 65,696,771 - 65,696,771 TIDELANDS OIL REVENUE FUND 96,873,865 - 96,873,865
RESERVE FOR SUBSIDENCE - - - DEVELOPMENT SERVICES FUND 43,215,340 - 43,215,340 AIRPORT FUND 74,898,068 - 74,898,068 REFUSE/RECYCLING FUND 98,529,910 - 98,529,910
SERRF FUND - - -
SERRF JPA FUND - - - TOWING FUND 7,276,529 - 7,276,529 HOUSING AUTHORITY FUND 125,803,932 - 125,803,932 SUCCESSOR AGENCY OPERATIONS 4,503,730 - 4,503,730 CUPA FUND 2,141,016 - 2,141,016 DEBT SERVICE FUND 8,320,399 962,472 9,282,871 SUCCESSOR AGENCY DEBT SERVICE 13,123,984 - 13,123,984 TOTAL 2,581,837,032 (8,166,689) 2,573,670,343 FISCAL YEAR 2027 REVENUES BY FUND GROUP
(Does not include Harbor, Water, Sewer, and Gas Fund Groups) *Please refer to the Fiscal Impact section of the City Council Letter for a general description of notable changes.
FY27 Fund Attachment D- REVENUE 8/4/2026