“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
2027
PROPOSED
BUDGET
MAY 5, 2026
2CITY 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.” AGENDA
MAY 5, 2026
FY 2027 PROPOSED BUDGET
• Budget Overview
º Budget Survey Results
º Fiscal Outlook
º Budget Highlights
General Fund Trends
Proposed Transfers to Other Funds
º Other Fund Highlights will be presented with
Department Presentations on May 12
• Questions/Feedback for May 12 Budget Study
Session
3CITY 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.” FY 2027 BUDGET TIMELINE
MAY 5, 2026
FY 2027 PROPOSED BUDGET
4CITY 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.”
BUDGET SURVEY
MAY 5, 2026
FY 2027 PROPOSED BUDGET
• Survey Period: December 19, 2025– February
28, 2026
• Survey Responses: 476
• Public Outreach: Involved various
engagement activities including:
• Email and social media
• Attendance in various meetings and
Community Announcements
• Advertisements in The Beach Reporter
• User-friendly platform easily accessible
by mobile device or desktop
• Overall, Survey Results revealed that residents
favor maintaining core services, while
increasing investment in infrastructure and
quality-of-life amenities, like enhanced
public safety and park facilities
476
Responses
5CITY 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.”
BUDGET SURVEY
MAY 5, 2026
FY 2027 PROPOSED BUDGET
The Survey focused on obtaining spending priorities based on current funding levels of City operations. The results indicate that most respondents feel the City should spend the “Same Amount” on each type of operation. 77 218
13 233
61 304
213
261
219
243
95 45
202
24 172
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Public Safety/Emergency
Services: 56% of City Budget
Parks & Recreation: 12% of City
Budget
City Administration: 12% of City
Budget
City Maintenance: 12% of City
Budget
Community Planning: 8% of City
Budget
Spending Priorities on City Operations
Based on Survey Results
More Money Same Amount Less Money
6CITY 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.”
BUDGET SURVEY
MAY 5, 2026
FY 2027 PROPOSED BUDGET
274
47 39 13 17
36 92
29 33 22
11 21
11 11 14
30 127
72 39 20
80 20
0%
20%
40%
60%
80%
100%
# 1 Priority # 2 Priority # 3 Priority # 4 Priority # 5 Priority Top 5 Priorities in Manhattan Beach
Based on Survey Results
Keeping our city safe Making parks better Helping homeless people Fixing roads Supporting local businesses Protecting the environment Helping seniors Making community centers nicer Bike safety Cultural activities Other
The Survey focused on obtaining the Top 5 Priorities from the community. The results indicate that most respondents’ top priorities for the City are as follows:
# 1 - Keeping our City safe, # 2 - Fixing roads, # 3 - Making parks better, # 4 - Bike safety, and # 5 - Parking
7CITY 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.”
BUDGET SURVEY
MAY 5, 2026
FY 2027 PROPOSED BUDGET
The Survey focused on obtaining the Top 6 Places to Fix from the community. The results indicate that most respondents’ Top 6 Places to Fix are as follows:
# 1 – Parking Facilities, # 2 – Parks & Rec Facilities, # 3 – Begg Pool, # 4 - Playgrounds, # 5 – Community Centers and # 6 – City Hall 124
62 74 70 85 61
99 136 144
59 29
9 123
82 56
74 64
77 39
80 86
108
84 79
84 94 79
107
90 22
7 22 37 58
124
228
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
# 1 Place # 2 Place # 3 Place # 4 Place # 5 Place # 6 Place Top 6 Places to Fix in Manhattan Beach
Based on Survey Results
Parking Facilities Parks and Recreation Facilities Begg Pool Playgrounds Community Centers City Hall 8CITY 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.”
FISCAL OUTLOOK
MAY 5, 2026
FY 2027 PROPOSED BUDGET
• Spending plan supports priorities of:
º Community feedback through the Budget Survey
º Public safety and emergency services
º Outstanding essential services
º Improved infrastructure and maintenance
• Revenues are stable in key areas
• City’s AAA credit rating re-affirmed by S&P in 2025
• Overall financial position allows us to maintain
outstanding service levels and make strategic
investments in infrastructure
9CITY 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.”
FISCAL OUTLOOK
MAY 5, 2026
FY 2027 PROPOSED BUDGET
• Financial Headwinds
º Economic uncertainty and slow-growth, high-cost
fiscal environment
Growth in ongoing expenditures outpacing anticipated
moderate growth in key revenues
º CalPERS Unfunded Accrued Liability (UAL)
payments rising from $2.7 million in FY 2027 to
$3.6 million in FY 2029
º Insurance Reserve Fund costs continue to escalate
due to premiums, claims and litigation expenses
º Equipment & fleet replacement costs significantly
increased due to inflation, tariff uncertainty, etc.
10CITY 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.”
BUDGET HIGHLIGHTS
MAY 5, 2026
FY 2027 PROPOSED BUDGET
• FY 2027 Proposed Budget includes:
º Labor Group MOU increases
º CPI increases for materials and services
º Budget enhancements (if funding available)
Re-prioritization of $1.1 million in General Fund
expenditures to accommodate higher community
priorities
º Equipment and Fleet Replacements totaling $3.2
million
º Year 1 of Proposed Five-Year Capital Improvement
Plan
11CITY 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.”
BUDGET HIGHLIGHTS
MAY 5, 2026
FY 2027 PROPOSED BUDGET
• FY 2027 Proposed Budget includes:
º Three new full-time positions:
Human Resources Assistant (HR)
Sewer Maintenance Worker (PW – Sewer)
Management Analyst (PW - GF/Water/Sewer/
Parking/Fleet)
º Modifications to three existing full-time positions:
Recreation Coordinator (P&R)
Administrative Analyst (FD)
Administrative Assistant (IT – IT Fund)
12CITY 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.” MAY 5, 2026
FY 2027 PROPOSED BUDGET
PERFORMANCE MEASURES
13CITY 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.” FY 2027 SUMMARY
MAY 5, 2026
FY 2027 PROPOSED BUDGET
TOTAL CITYWIDE BUDGET
REVENUES $199.7 million
EXPENDITURES $210.6 million
Operating $165.6 million
CIP & Equipment $22.3 million
Debt Service $11.2 million
Transfers $11.5 million
14CITY 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.” General Fund
$119,112,514
60%
Special Revenue Funds
$6,749,549
3%
Enterprise Funds
$34,521,075
17%
Internal Service Funds
$31,217,925
16%
CIP Fund
$6,110,400
3%
Trust & Agency Funds
$1,997,328
1%
CITYWIDE REVENUES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$199,708,791
15CITY 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.” Public Works
$71,349,805
34%
Police
$46,567,199
22%
Fire
$23,257,391
11%
Parks and Rec
$12,821,977
6%
Human Resources
$16,700,028
8%
Community Development
$10,007,349
5%
Management Services
$5,695,533
3%
Information
Technology
$7,108,074
3%
Non-Departmental
$11,417,126
5%
Finance
$5,636,035
3%
CITYWIDE EXPENDITURES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$210,560,517By Department
16CITY 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.” FY 2027 GENERAL FUND SUMMARY
MAY 5, 2026
FY 2027 PROPOSED BUDGET
GENERAL FUND BUDGET
ONGOING REVENUES $118,965,764
ONGOING EXPENDITURES $116,993,996
STRUCTURAL SURPLUS/(DEFICIT) $1,971,768
TRANSFER IN FROM COUNTY LOTS FUND $146,750
ONE-TIME EQUIPMENT ($436,900)
TRANSFER OUT TO STREET LIGHTING FUND ($270,376)
TRANSFER OUT TO CIP FUND ($5,000,000)
TRANSFER OUT TO INSURANCE FUND ($6,000,000)
DECREASE IN FUND BALANCE ($9,588,758)
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.” MAY 5, 2026
FY 2027 PROPOSED BUDGET
General Fund Reserve Projections after FY 2027:
20% of Expenditures Policy $23.4 million
Economic Uncertainty $ -
Unreserved Fund Balance $ 1.5 million
General Fund Balance impacted by transfers out to
other funds:
• Street Lighting & Landscape Fund - $270,376
• CIP Fund - $5.0 million
• Insurance Fund - $6.0 million
• Section 115 Trust Fund to prefund future pension costs – PAUSED FY 2027 FUND BALANCE SUMMARY
Section 115 Trust Fund Balance projected to be $6.5 million in FY 2027 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.” Property Taxes
$49,562,999
42%
Sales & Use Tax
$18,649,000
16%
Service Charges
$9,341,075
8%
Transient
Occupancy Tax
$9,257,200
8%
Business License
Tax
$5,900,000
5%
Other Revenues
$10,827,010
9%
Use of Money &
Property
$4,218,300
4%
Licenses & Permits
$6,259,000
5%
Other Taxes
$1,798,052
1%
Fines & Forfeitures
$2,987,078
2%
Other Govts
$312,800
0%
GENERAL FUND REVENUES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$119,112,514
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.”
GENERAL FUND MAJOR REVENUES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$38.7 $41.0 $43.1 $45.0 $47.4 $49.6
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Actual
FY 2026
Estimate
FY 2027
Budget
In Millions
PROPERTY TAX
$10.5 $11.2 $11.1 $13.3
$18.0 $18.6
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Actual
FY 2026
Estimate
FY 2027
Budget
In Millions
SALES & USE TAX
$5.6 $6.6
$8.7 $9.0 $9.1 $9.3
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Actuals
FY 2026
Estimate
FY 2027
Budget
In Millions
TRANSIENT OCCUPANCY TAX
$5.2 $4.9 $5.4 $5.6 $6.0 $5.9
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Actual
FY 2026
Estimate
FY 2027
Budget
In Millions
BUSINESS LICENSE TAX
*Includes Short-Term Rentals
*Includes Measure MMB
20CITY 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.”
GENERAL FUND MAJOR REVENUES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$4.0 $3.4 $4.3 $4.6
$6.1 $6.3
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Actual
FY 2026
Estimate
FY 2027
Budget
In Millions
BUILDING PERMITS & PLAN CHECK FEES
$3.6 $4.4 $4.4 $4.8 $4.9 $5.9
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Actuals
FY 2026
Estimate
FY 2027
Estimate
In Millions
PARKS & RECREATION REVENUES
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.” Police
$45,419,467
35%
Fire
$22,469,934
18%
Parks and
Recreation
$11,882,807
9%
Public Works
$13,896,994
11%
Community
Development
$9,978,224
8%
Management
Services
$5,695,533
4%
Finance
$5,139,966
4%
Human Resources
$2,947,971
2%
Non-Departmental
$11,270,376
9%
GENERAL FUND EXPENDITURES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$128,701,272 By Department
22CITY 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.” Salaries & Benefits
$70,042,025
54%
Materials & Services
$23,742,320
19%Internal Service
Charges
$16,881,817
13%
Transfers Out
$11,283,510
9%
Capital Projects &
Equipment
$436,900
0%
Debt Service
$6,314,700
5%
GENERAL FUND EXPENDITURES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$128,701,272 By Category
23CITY 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.” • Salaries are increasing $2.6 million or 5.7%
º Includes MOU adjustments and associated benefits
º 6% Vacancy factor built in to recognize savings up front º General Fund staffing adjustments summary:
Adjustments to full-time positions ($162,919)
Part-time additions ($23,800)
• Benefits are increasing $4.3 million or 25.4%
º Medical Insurance increase of $576,926 (9.7%)
º CalPERS current service costs increases total $264,985 (4.7%) º CalPERS UAL payments total $2,593,803
º Workers Compensation Allocation $720,193 (16.8%)
GENERAL FUND EXPENDITURES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
24CITY 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 $2.2 million (10.5%)
• Internal Service Charge-outs increasing by 10.4%:
º Information Technology Fund (+$130,878)
º Fleet Fund (+$530,295)
Includes vehicle maintenance and future replacements
º Building Maintenance & Operations (-$163,065)
º Insurance Reserve Fund (+$1,079,760)
Additional funding needed for rising premiums, claims and litigation expenses
Claims Paid/Litigation Expenses usually budgeted using historical average; Recent trends indicate costs continue to escalate • Debt Service increased by $679,348 (12%) due to Public Safety radio equipment purchased in 2025
GENERAL FUND EXPENDITURES
MAY 5, 2026
FY 2027 PROPOSED BUDGET
25CITY 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.”
ESTIMATED GENERAL FUND BALANCE
MAY 5, 2026
FY 2027 PROPOSED BUDGET
$19,548,282 $21,101,166 $23,398,799 $21,895,099
$19,174,407 $17,023,172 $15,354,507
$4,000,000 $4,000,000
$2,128,343
$9,358,000
$1,471,609
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
FY 2025
Actual
FY 2026
Projection
FY 2027
Budget
FY 2028
Forecast
FY 2029
Forecast
FY 2030
Forecast
FY 2031
Forecast
Financial Policy Designation Reserve for Economic Uncertainty Unreserved Fund Balance *GFOA Recommendation for Financial
Policy Designation is 17% of Ongoing
Expenditures = $19.9 million
26CITY 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 21.3%
º FY 2022 -6.1%
º FY 2023 5.8%
º FY 2024 9.3%
º FY 2025 11.6%
• Based on FY 2025 investment return, City’s unfunded
liability is estimated at $15 million
• Unfunded Liability payment of $2.8 million due in FY
2027
FINANCIAL POLICIES – PENSION FUNDING
MAY 5, 2026
FY 2027 PROPOSED BUDGET
*June 30, 2025 Actuarial Reports will be released in August 2026 27CITY 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.” • Pension Policy allows flexibility in the allocation of “savings” from the issuance of POBs
• Staff recommends temporarily pausing transfers to
Section 115 Trust and utilizing these funds to pay
CalPERS UAL payments and other critical needs
• Section 115 Trust Fund Balance projected to be $6.5
million in FY 2027
• Finance staff will continue to monitor and provide
updates to Finance Subcommittee
FINANCIAL POLICIES – PENSION FUNDING
MAY 5, 2026
FY 2027 PROPOSED BUDGET
28CITY 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.”
FINANCIAL POLICIES - CIP FUNDING
MAY 5, 2026
FY 2027 PROPOSED BUDGET
• CIP Fund funding sources :
º $1.1 million in Transient Occupancy Tax revenue
º Beginning FY 2026, City implemented annual
transfer of $5.0 million for capital projects and debt
service
• Ongoing Expenditures in CIP Fund include debt service of $1.8 million
Police/Fire Facility ($763,663)
Fire Station No. 2 ($402,875)
Purchase of 400 Manhattan Beach Boulevard ($624,750)
Other potential projects requiring debt service include the future project at 400 Manhattan Boulevard and Lot 3
29CITY 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.” • Essential services maintained with modest growth in
revenues
• Budget allows for strategic investments in infrastructure • Next steps
º May 12: Budget Study Session and CIP Presentation
º Email comments to [email protected]
º June 2: Public Hearing and Budget/CIP Adoption
• Questions/Feedback for May 12 Budget Study Session
BUDGET RECAP
MAY 5, 2026
FY 2027 PROPOSED BUDGET
QUESTIONS
• MAY 6, 2025