PowerPoint Presentation — Manhattan Beach City Council, May 7, 2024

“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” FISCAL YEAR 2024-2025

PROPOSED BUDGET
MAY 7, 2024
2CITY OF

3CITY OF

FISCAL OUTLOOK
FY 2024-2025 PROPOSED BUDGET
• Spending plan supports City Council priorities of public safety and outstanding essential services
• Revenues are stable and growing in key areas
• City’s AAA credit rating re-affirmed by S&P in 2021
• Overall financial position allows re-investment in our infrastructure, maintenance and service levels
• Approximately $1.0 million in COVID-19 expenditures
submitted for FEMA reimbursement
º $194,719 received to date
º Approximately $116,300 in eligible reimbursements
remain
4CITY OF

BUDGET HIGHLIGHTS
FY 2024-2025 PROPOSED BUDGET
• Significant additions and initiatives include:
º Vehicle Replacements, including $2.0 million Fire
Engine replacement
º Capital improvement projects supported by $1.0
million General Fund transfer
º Police SWAT Rescue Vehicle
º Environmental Compliance and SB 1383
Assistance
º Contract Services includes CPI adjustments and
enhancements
º Citywide Artificial Intelligence (AI) initiatives
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BUDGET HIGHLIGHTS
FY 2024-2025 PROPOSED BUDGET
• Personnel costs include:
º MOU Adjustments
º Full impacts of 12 positions approved at mid-year
º Four new full-time positions:
 Permits Technician (CD)
 Office Assistant (IT – Information Technology Fund)
 Account Specialist (FIN)
 Water Systems Operator (PW – Water Fund)
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TOTAL CITYWIDE BUDGET
REVENUES $170.0 million
EXPENDITURES 184.6 million
Operating $136.8 million
CIP & Equipment 37.5 million
Debt Service 10.3 million

GENERAL FUND BUDGET
REVENUES $99.0 million
EXPENDITURES 98.5 million
OPERATING SURPLUS $508,264
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Transfers to support operations and one-time projects:
• CIP Fund - $1.0 million
• Street Lighting & Landscape Fund - $313,346
Transfers as a result of UAL Pension Policy:
• CIP Fund for projects - $1,194,471
• Section 115 Trust Fund to prefund future pension costs - $1,791,707 FY 2024-2025 SUMMARY
Section 115 Trust Fund Balance projected to be $4.2 million in FY 2024-2025 8CITY OF

PERFORMANCE MEASURES

9CITY OF

CITYWIDE REVENUES
FY 2024-2025 PROPOSED BUDGET
General Fund
$98,993,155
58%
Special Revenue Funds
$17,653,948
10%
Enterprise Funds
$29,702,580
18%
Internal Service Funds
$19,951,058
12%
CIP Fund
$1,714,302
1%
Trust & Agency Funds
$1,964,057
1%
$169,979,100
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CITYWIDE REVENUES
FY 2024-2025 PROPOSED BUDGET
Public Works
$79,868,612
43%
Police
$39,429,192
21%
Fire
$18,764,189
10%
Parks and Rec
$11,387,192
6%
Human Resources
$11,414,376
6%
Community Development
$8,295,122
5%
Management
Services
$5,215,782
3%
Information
Technology
$5,428,569
3%
Finance
$4,836,849
3%
$184,639,883By Department
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GENERAL FUND REVENUES
FY 2024-2025 PROPOSED BUDGET
$98,993,155
Property Taxes
$44,688,638
45%
Sales & Use Tax
$11,350,000
12%
Service Charges
$9,768,401
10%
Transient
Occupancy Tax
$8,615,000
9%
Business License
Tax
$5,200,000
5%
Other Revenues
$4,998,118
5%
Use of Money &
Property
$5,147,800
5%
Licenses & Permits
$4,025,191
4%
Other Taxes
$2,542,610
3%
Fines & Forfeitures
$2,401,397
2%
Other
Governments
$256,000
0%
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GENERAL FUND REVENUES
FY 2024-2025 PROPOSED BUDGET
$34.0 $36.8 $38.7 $41.0 $42.8 $44.7
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Estimate
2025
Budget
In Millions

PROPERTY TAX
$8.4 $8.0
$10.5 $11.2 $11.1 $11.4
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Estimate
2025
Budget
In Millions

SALES & USE TAX
$3.6 $2.4
$5.6 $6.6
$8.2 $8.6
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Estimate
2025
Budget
In Millions

TRANSIENT OCCUPANCY TAX
$3.7 $3.8
$5.2 $4.9 $5.0 $5.2
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Estimate
2025
Budget
In Millions

BUSINESS LICENSE TAX
*Includes Short-Term Rentals
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GENERAL FUND REVENUES
FY 2024-2025 PROPOSED BUDGET
$3.0 $3.4 $4.0 $3.4 $3.8 $3.9
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Estimate
2025
Budget
In Millions

BUILDING PERMITS & PLAN CHECK FEES
$3.0
$2.0
$3.6
$4.4 $4.3 $4.7
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Estimate
2025
Budget
In Millions

PARKS & RECREATION REVENUES

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GENERAL FUND EXPENDITURES
FY 2024-2025 PROPOSED BUDGET
$98,484,891By Category
Salaries & Benefits
$58,686,751
59%
Materials & Services
$20,883,581
21%
Internal Service
Charges
$12,532,840
13%
Transfers Out
$13,134
0%
Capital Projects &
Equipment
$743,480
1%
Debt Service
$5,625,105
6%
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GENERAL FUND EXPENDITURES
FY 2024-2025 PROPOSED BUDGET
$98,484,891By Department
Police
$38,223,846
39%
Fire
$17,732,501
18%
Parks and
Recreation
$10,575,180
11%
Public Works
$12,166,344
12%
Community
Development
$8,228,911
8%
Management
Services
$5,192,028
5%
Finance
$4,333,794
5%
Human Resources
$2,032,287
2%
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MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • Salaries and Benefits increasing $3.1 million based on MOU increases and associated benefits
º Vacancy factor built in to recognize savings up
front
º General Fund staffing adjustments summary:
 Full impact of positions added in February 2024
 Two new full-time positions ($133,620)
 Upgrades and part-time adjustments ($179,524)
º Benefits category includes CalPERS current
service costs totaling $5.3 million
• Debt service category includes $5.2 million for POB
payments

GENERAL FUND EXPENDITURES
FY 2024-2025 PROPOSED BUDGET
17CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • Materials & Services increasing $1.7 million due to:
º Inflationary increases affecting costs of Contract Services, Utilities, and other materials
º Additional contract services for Traffic Markings ($140,000), Tree Planting ($100,000), Janitorial Services ($100,000), Landscaping Services ($100,000), and Park Maintenance
($75,000)
º One-time Contract Services for City Leases and TOT audit ($65,000)
º Elections increasing ($169,500)
º Legal Services increasing ($184,520)
º SBRPCA (RCC) and INSB Communications increasing
($110,951)

GENERAL FUND EXPENDITURES
FY 2024-2025 PROPOSED BUDGET
18CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • New Equipment and Vehicles included:
º Three net new vehicles added for Police Lieutenants
($243,930)
º New Police SWAT Rescue Vehicle (295,650)
º Command Vehicle for new Fire Deputy Chief ($70,000)
• Red House Upgrades ($75,000)
• Internal Service Charges increasing $520,129
primarily due to higher costs and inflationary
increases (e.g., insurance premiums, contract services, materials and supplies, fuel costs, etc.)

GENERAL FUND EXPENDITURES
FY 2024-2025 PROPOSED BUDGET
19CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • Volatility in CalPERS investment returns from assumed rate of 6.8% creates unfunded liabilities
º FY 2021 22.4%
º FY 2022 -7.5%
º FY 2023* 6.1%
• Based on FY 2022 investment return, City’s unfunded
liability is approximately $28 million
• Unfunded Liability payment of $1.1 million due in
FY 2024-2025
• Finance staff will continue to monitor and provide
updates to Finance Subcommittee

CALPERS PENSION PAYMENTS
FY 2024-2025 PROPOSED BUDGET
*June 30, 2023 Actuarial Reports will be released in August 2024 20CITY OF

ESTIMATED GENERAL FUND BALANCE
FY 2024-2025 PROPOSED BUDGET
*GFOA Recommendation for
Financial Policy Designation is
17% of Expenditures = $16.8
million
21CITY OF

MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • Strong revenues and balanced budget
• Essential services maintained
• Re-investments in infrastructure, maintenance and
services
• Next steps
º May 14: Budget Study Session and CIP Presentation
º May 21: Potential Budget discussion at Regular Meeting º May 28: Budget Study Session (if needed)
º Email comments to [email protected]
º June 4: Public Hearing and Budget/CIP Adoption

BUDGET RECAP
FY 2024-2025 PROPOSED BUDGET
22CITY OF

QUESTIONS
FY 2024-2025 PROPOSED BUDGET

Manhattan Beach City CouncilMay 7, 2024

Manhattan Beach City Council
May 7, 2024