PowerPoint Presentation — Manhattan Beach City Council, June 2, 2026

“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

PUBLIC HEARING,

ADOPTION &

GANN LIMIT

APPROPRIATION
JUNE 2, 2026

2CITY OF

3CITY OF

FISCAL OUTLOOK
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
• Spending plan supports priorities of City Council and community feedback through the Budget Survey:
º Public safety and emergency services
º Quality-of-life amenities, like enhanced Park Facilities º Outstanding essential services
º Improved infrastructure and maintenance
• Revenues are stable/flattening in key areas, while
expenditures continue to rise
• City’s AAA credit rating re-affirmed by S&P in 2025
• Overall financial position allows us to maintain existing service levels and make strategic investments in
infrastructure
5CITY OF

FISCAL OUTLOOK
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
• 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.
6CITY OF

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
7CITY OF

GENERAL FUND BUDGET HIGHLIGHTS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Important impacts on General Fund trends:
 Increased financial transparency by classifying transfers as expenditures
 $5 million transfer to CIP Fund
 $6 million transfer to Insurance Fund due to underfunding in prior years
 Increased Insurance Fund (+$1.8 million) and Fleet Fund ($+530,195) charges due to underfunding in prior years
 Added one-time costs for capital equipment purchases
 Added new debt service payments for Public Safety Radios  CalPERS UAL costs increasing
 Cost of Labor, Materials and Contract Services increasing per contractual agreements and with inflation/economic
pressures
8CITY OF

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)
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.” BUDGET RECAP – REPRIORITIZED CONTROLLABLE
COSTS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Object Code Description
Reprioritization
Amount
Contract Services $354,838
Community Development Total $354,838
Overtime 1,282
Software Purchases and Subscr 4,000
Training/Conferences/Meetings 5,630
Finance Total $10,912
Contract Services 49,840
Departmental Supplies 10,550
Fire Total $60,390
Departmental Supplies 2,000
Part Time Employee Salaries 66,000
Training/Conferences/Meetings 66,450
Human Resources Total $134,450
Object Code Description
Reprioritization
Amount
Contract Services 16,950
Departmental Supplies 14,300
Training/Conferences/Meetings 53,430
Management Services Total $84,680
Contract Services 46,568
Part Time Employee Salaries 86,203
Parks & Recreation Total $132,771
Departmental Supplies 7,950
Overtime 41,000
Part Time Employee Salaries 20,050
Police Total $69,000
Contract Services 292,362
Departmental Supplies 8,500
Training/Conferences/Meetings 5,000
Public Works Total $305,862
Total Reprioritizations $1,152,903
Recognizing expenditures are increasing
while revenues remain flat, staff proactively
reprioritized $1.15 million in controllable
costs as part of FY 2027 Proposed Budget
11CITY OF

BUDGET RECAP - PERSONNEL
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
# Description Recurring Fund
FY 2027
Request
Human Resources Department
1 Add 1.0 FTE Human Resources Assistant Yes General Fund $0 Parks & Recreation Department
2 Convert 1.0 FTE Transportation Services Operator to 1.0 FTE Recreation Coordinator Yes General Fund (521) Fire Department
3 Upgrade 1.0 FTE Executive Assistant to 1.0 FTE Administrative Analyst Yes General Fund 7,234 Public Works Department
4 Add 1.0 FTE Management Analyst (General/Water/Sewer/Parking/Fleet Funds) Yes Multiple Funds 88,953 5 Add 1.0 FTE Sewer Maintenance Worker Yes Sewer Fund 50,893 Information Technology Department
6 Upgrade 1.0 FTE Office Assistant to 1.0 FTE Administrative Assistant Yes IT Fund 15,839 TOTAL $162,399
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.” BUDGET RECAP – OTHER REQUESTS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Budget Requests include 29 items for FY 2027 that support critical needs and community priorities identified in the Budget Survey:
# Description Fund Name FY 2027 Request
Community Development $159,000
1 Consultant Services for Affordable Housing Monitoring Program General Fund 150,000 2 Monitors for plan check staff and planners General Fund 9,000 Fire $331,334
3 Administrative Analyst General Fund 7,234
4 EMS Equipment General Fund 15,000
5 EMS Medical Supplies General Fund 19,100
6 Extrication Tools General Fund 200,000
7 Fire Ops Tools and Equipment General Fund 25,000
8 Fire Wellness Program for 1582 Physical Exam per MOU, cancer screening and City gym equipment replacement
General Fund 50,000
9 Fire Communications Replacement of Wildland Radios General Fund 15,000 Human Resources -
10 Adding a full-time FTE HR Assistant General Fund -
Information Technology $265,839
11 Office Assistant Reclassification to Administrative Assistant (FTE) IT Fund 15,839 12 Phone System Replacement IT Fund 250,000
13-29 continued on next page
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.” BUDGET RECAP – OTHER REQUESTS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
# Description Fund Name FY 2027 Request
Parks & Recreation $223,280
13 Instructor Payments for Older Adult Classes General Fund 98,000 14 Leagues and Tournaments Officials Payments General Fund 9,800 15 Monthly Bus Excursions General Fund 18,000
16 Part-time Seasonal Program Coordinator - Concerts in the Park General Fund 10,800 17 Part-time Sr. Recreation Leader Cultural Arts General Fund 13,000 18 Recreation Coordinator - Older Adults General Fund (520) 19 Tennis Tournament Expenses General Fund 4,200
20 Volleyball instructor payments General Fund 70,000
Police $200,000
21 Departmentwide Workstation Ergonomic Updates Asset Forfeiture Fund 200,000 Public Works $863,886
22 1.0 FTE - Sewer Maintenance Worker Sewer Fund 50,893 23 American Martyrs Stormwater Sump Fencing Replacement Storm Drain Fund 14,040 24 Cross-connection Control Program Hazard Assessment Water Fund 75,000 25 Grant Match for Cybersecurity of Critical Water Infrastructure Water Fund 260,000 26 Management Analyst General Fund 88,953
27 Needs Assessment for Emergency Water Interties Water Fund 75,000 28 Outfitting for Tiller Fleet Fund 200,000
29 Purchase and installation of overhead hose reels and oil containment tanks
Fleet Fund 100,000
Grand Total $2,043,339
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.” BUDGET RECAP – DEFERRED REQUESTS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
The Deferred List includes 22 requests that were not included in FY 2027 Proposed Budget due to other higher priority needs # Description Fund Name Deferred Amount
Community Development $20,000
1 Window Shades General Fund 20,000
Finance $65,000
2 TOT Payment Portal for Hotels and Short-Term
Rentals & Related Compliance Services
General Fund 65,000
Fire $895,946
3 Suppression Staffing General Fund 496,278
4 40-hour Training/EMS Captain General Fund 297,713
5 Security Knox boxes (9) and platform subscription General Fund 13,955 6 Tablet Command General Fund 38,000
7 Fire Facility Safety Upgrades General Fund 50,000
Human Resources $14,000
8 Recruitment Costs General Fund 14,000
Information Technology $244,902
9 IT Applications Manager IT Fund 244,902
Parks & Recreation $107,000
10 New Registration/Reservation Software (One-time) General Fund 100,000 11 OAP Departmental Supplies General Fund 7,000
12-22 continued on next page
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.” BUDGET RECAP – DEFERRED REQUESTS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
The Deferred List includes 22 requests that were not included in FY 2027 Proposed Budget due to other higher priority needs # Description Fund Name Deferred Amount
Police $613,841
12 Deputy Police Chief General Fund 482,841
13 CSO Supervisor Vehicle General Fund 75,000
14 Police Duty Handgun Replacement General Fund 56,000
Public Works $723,212
15 Citywide Electronic Traffic Safety Device Monitoring System
General Fund 175,000
16 Engineering Plotter Replacement Request Form General Fund 30,500 17 Maintenance Assistant Street Lighting &
Landscape Fund
82,712
18 Small Cell Tower Plan Check Review Fees General Fund 50,000 19 Training and Conferences General Fund 10,000
20 Standby Contract - Sewer Sewer Fund 150,000
21 Standby Contract - Storm Drain Storm Drain Fund 75,000 22 Standby Contract - Water Water Fund 150,000
Grand Total $2,683,901
16CITY OF

Department
Reductions Already
Factored in FY 2027
Proposed Budget
Management Services $ 84,680
Finance 10,912
Human Resources 152,450
Parks and Recreation 193,402
Police 69,000
Fire 60,390
Community Development 354,838
Public Works 305,862
Information Technology -
Total Budget Reductions $ 1,231,534
17CITY OF

QUESTIONS/DIRECTION ON
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION

18CITY OF

FOLLOW UP ITEMS FROM MAY BUDGET

MEETINGS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
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.” • Cost Containment - Review of Materials & Services
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Account Title
2026
Adopted
FY 2027
Proposed
Change from
FY 2026
Adopted % Change
52201 Departmental Supplies $1,525,997 $1,631,659 $105,662 6.9% 52202 Office Supplies 66,100 68,700 $2,600 3.9%
52203 Printing 112,560 113,410 $850 0.8%
52204 Postage 47,239 48,965 $1,726 3.7%
52205 Uniforms/Safety Equipment 387,973 443,359 $55,386 14.3% 52206 Advertising 161,900 152,200 ($9,700) (6.0%)
52207 Tools & Minor Equipment 11,000 51,000 $40,000 363.6% 52301 Training/Conferences/Meetings 791,355 846,920 $55,565 7.0% 52302 STC Training 6,800 7,200 $400 5.9%
52303 POST Training 101,800 144,800 $43,000 42.2%
52304 Employee Awards & Events 53,300 43,300 ($10,000) (18.8%) 52305 Recruitment Costs 77,450 51,000 ($26,450) (34.2%) 52306 Tuition Reimbursement 45,000 45,000 - -
52307 Memberships & Dues 146,927 150,453 $3,526 2.4%
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.” • Cost Containment - Review of Materials & Services
continued
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Account Title
2026
Adopted
FY 2027
Proposed
Change from
FY 2026
Adopted % Change
52308 Reference Books & Periodicals 25,190 30,626 $5,436 21.6% 52403 City Store Purchases 24,600 24,600 - -
52404 Bank Service Charge 215,000 367,346 $152,346 70.9% 52406 Assessments & Taxes 4,500 4,500 - -
52602 Claims Paid - - - -
52702 Public Service Events 16,100 21,350 $5,250 32.6%
52703 City Funds Match 15,000 15,000 - -
52704 City Funds Exchange - - - -
52705 Service Agency Contributions 46,892 178,298 $131,406 280.2% 52707 M.B. School Support - - - -
52801 Computers, Supplies & Software 49,270 46,982 ($2,288) (4.6%) 52803 Leased Property & Equipment 1,040,982 1,080,982 $40,000 3.8% Materials & Services $4,972,935 $5,567,650 $594,715 12.0% 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.” • Cost Containment - General Fund reduction of $1 Million • Low Impact = Little to No community/organizational impact • Medium Impact = Impact on internal City operations/Staff; Minor to No impact to Services in community
• High Impact = Noticeable service impacts in community (Not Recommended) FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Department 1 - Low 2 - Med 3 - High Total
Management Services $ 110,400 $ 13,500 $ 2,500 $ 126,400 Finance 16,900 6,000 4,000 26,900
Human Resources - 25,000 - 25,000
Parks & Recreation 28,500 53,738 14,786 97,024
Police 22,000 207,200 150,850 380,050
Fire - - 200,000 200,000
Community Development 19,800 47,100 14,500 81,400
Public Works - 78,840 57,964 136,804
Information Technology 60,000 85,000 - 145,000
Total $ 257,600 $ 516,378 $ 444,600 $ 1,218,578 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.” • Cost Containment – Low Impact
• Main reductions include:
º $16,000 Furniture & Fixtures (CD)
º $9,000 Contract Services (FN)
º $60,000 Computer/Software (IT)
º $9,000 Contract Services (MS)
º $80,000 Serv. Agency
Contributions* (MS)
º $19,000 Software Purchases (PD)
º $21,000 Department Supplies (PR)
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Object Code Description 1 - Low Impact
Furniture & Fixtures $ 16,000
Training/Conferences/Meetings 3,800
Community Development Total $ 19,800
Contract Services 9,000
Departmental Supplies 1,100
Furniture & Fixtures 2,100
Printing 3,000
Training/Conferences/Meetings 1,700
Finance Total $ 16,900
Computers, Supplies & Software 60,000
Information Technology Total $ 60,000
Advertising 1,700
Contract Services 9,000
Departmental Supplies 5,150
Memberships & Dues 450
Public Service Events 400
Service Agency Contributions 80,000
Software Purchases/Subscriptions 200
Training/Conferences/Meetings 13,500
Management Services Total $ 110,400
Printing 3,000
Software Purchases /Subscriptions 19,000
Police Total $ 22,000
Advertising 3,500
Departmental Supplies 21,000
Printing 1,000
Training/Conferences/Meetings 3,000
Parks and Recreation Total $ 28,500
Total Low Impact $ 257,600 *Moved to State Pier & Parking Fund 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.” • Cost Containment – Medium Impact
• Main reductions include:
º $20,000 Contract Services (CD)
º $22,100 Training (CD)
º $75,000 Software Purchases (IT)
º $200,000 Overtime Sworn (PD)
º $41,738 Contract Services (PR)
º $78,7840 Contract Services (PW)
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Object Code Description 2 – Med Impact
Contract Services 20,000
Departmental Supplies 5,000
Training/Conferences/Meetings 22,100
Community Development Total $ 19,800
Departmental Supplies 2,000
Printing 4,000
Finance Total $6,000
Contract Services 15,000
Recruitment Costs 10,000
Human Resources Total $25,000
Computers, Supplies & Software 10,000
Software Purchases/Subscriptions 75,000
Information Technology Total $85,000
Contract Services 4,500
Departmental Supplies 3,000
Public Service Events 6,000
Management Services Total $13,500
Departmental Supplies 2,200
Overtime Regular Employees 5,000
Overtime Sworn Employees 200,000
Police Total $207,200
Contract Services 41,738
Software Purchases/ Subscriptions 12,000
Parks and Recreation Total $53,738
Contract Services 78,840
Public Works Total $78,840
Total Medium Impact $ 516,378
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.” • Cost Containment - High Impact
(Not Recommended)
• Main reductions include:
º $10,500 Overtime (CD)
º $200,000 Equipment/Extrication
Tools (FD)
º $80,000 Contract Services (PD)
º $13,6900 Dept Supplies (PD)
º $40,000 OT Special Events (PD)
º $17,250 OT Sworn (PD)
º $14,786 Contract Services (PR)
º $50,264 Contract Services (PW)
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Object Code Description 3 – High Impact
Departmental Supplies $ 4,000
Overtime Regular Employees 10,500
Community Development Total $ 14,500
Departmental Supplies 4,000
Finance Total $ 4,000
Machinery & Equipment 200,000
Fire Total $ 200,000
Departmental Supplies 2,500
Management Services Total $ 2,500
Contract Services 80,000
Departmental Supplies 13,600
Overtime Special Events 40,000
Overtime Sworn Employees 17,250
Police Total $ 150,850
Contract Services 14,786
Parks and Recreation Total $ 14,786
Contract Services 50,264
Departmental Supplies 7,700
Public Works Total $ 57,964
Total High Impact $ 444,600
28CITY OF

QUESTIONS/DIRECTION ON
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
LOW, MEDIUM & HIGH IMPACT $1,218,578 LOW & MEDIUM IMPACT $773,978
LOW IMPACT $257,600
Removes
$257,600
In Low Impact
Costs
Little to No
community/
organizational impact
Removes
$516,378
In Medium Impact
Costs
Affects internal City
operations/Staff;
Minor impact to
Services in community
Removes
$444,600
In High Impact
Costs
Noticeable service
impacts in
community
(Not Recommended)
29CITY OF

1. Credit Card Pass-through Fees

2. Parking Meter Citation Fines

3. Business License Tax (Community polling in progress; Ballot Measure Required)

4. 0.5% Sales Tax Measure (Ballot Measure Required)

5. Variable Transient Occupancy Tax rate applicable for Short-Term Rentals (Ballot Measure Required)

6. Utility Users Tax (Ballot Measure Required)

7. Short-Term lease for 400 MBB until construction begins (Requires further research)

8. Bond Measure to support infrastructure (not recommended)

9. Re-evaluate Special Event Fee Waivers
º Other Funds

1. Street Lighting & Landscaping Assessments (Prop 218 Required)

2. Parking Meter Rates
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
30CITY OF

Implement a 3% Credit Card Pass-Through Fee
on all applicable credit card transactions
Revenue Impact:

Estimated $350,000
31CITY OF

Adjust Parking Citation Fine from $59 to $65
Revenue Impact:

Estimated $300,000
32CITY OF

Update/Modernize Business License Tax
Structure to Alternative Tax Model
Revenue Impact:

Estimated $800,000 Based on
Modified Tax Model 3
34CITY OF

Conduct community polling on a new Sales
Tax Measure to reach maximum potential of

10.75%
Revenue Impact:
$6.6 million
35CITY OF

Adjust TOT rate for Short Term Rentals from
14% to 16%
Revenue Impact:

Estimated $225,000
36CITY OF

STR TOT
Rate
1 Inglewood 15.5% 15.5%
2 Santa Monica 15% 17%
3 Malibu 15% 15%
4 Anaheim 15% 15%
5 Beverly Hills 14% N/A
6 Culver City 14% 14%
7 Hermosa Beach 14% 14%
8 Los Angeles (City)* 14% 14%
9 Manhattan Beach 14% 14%
10 Redondo Beach 12% 12%
11 El Segundo 12% 12%
12 Torrance 11% 11%
13 Huntington Beach 10% 16%
*Los Angeles (City): Measure TT,
currently on the ballot, proposes a
temporary increase to TOT to 16%
through December 31, 2028, then
adjusts down to 15% permanently
37CITY OF

Establish a UUT to support increased costs in
General Fund
Revenue Impact:

Unknown without UUT Study
38CITY OF

Consider Short-Term Lease to help support
Debt Service Costs of $624,750
Revenue Impact:

TBD
40CITY OF

Update Engineer’s Report and analysis of
benefit assessments; Conduct Public
Hearing and Prop 218 Special Mail In Ballot
Revenue Impact:

TBD Based on Engineer’s Assessment
(would eliminate $270,376
Subsidy/Transfer from General Fund)
43CITY OF

Adjust hourly metered parking rates that align
with Parking Strategies – variable seasonal
rates up to $4/hour
Revenue Impact:

In-depth analysis underway; PPIC to consider
in May or June
Note: Based on operational expenses and 5 Year CIP List, the Parking Fund and State Peir & Parking Fund do not meet reserve policy and continue to have unfunded capital needs
44CITY OF

QUESTIONS/DIRECTION ON
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
General Fund
Potential
Amount

1. Credit Card Pass-through Fees $350,000

2. Parking Meter Citation Fines $300,000

3. Business License Tax (Ballot Measure Required) $800,000

4. 0.5% Sales Tax Measure (Ballot Measure Required) $6,600,000

5. Variable TOT rate applicable for Short-Term Rentals (Ballot Measure Required) $225,000

6. Utility Users Tax (Ballot Measure Required) TBD

7. Short-Term lease for 400 MBB until construction begins (Requires further research) TBD

8. Bond Measure to support infrastructure (not recommended) -

9. Re-evaluate Special Event Fee Waivers $624,886
TOTAL GENERAL FUND REVENUE OPTIONS $8,899,886
Other Funds
Potential
Amount

1. Street Lighting & Landscaping Assessments (Prop 218 Required) $270,376

2. Parking Meter Rates TBD
TOTAL OTHER FUND REVENUE OPTIONS $270,376
46CITY OF

1. Discussion on CERT funding request ($10,200 Annual
Contribution)

2. Street Lighting & Landscape Fund Transfer from General Fund Update (May 2026 Engineer’s Report)

3. Gas Tax Fund Revenue Increase (May 2026 Amended
California State Fiscal Year 2026-27 Budget)

4. Correction to move Roundhouse Contribution from General Fund to State Pier & Parking Fund

5. Cost Containment Measures (Low & Medium Impact only)

6. CIP changes based on Council direction from May 12, 2026 Resolution allows adoption of FY 2027 Budget as amended by modifications
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
47CITY 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.” Complete List of Modifications to Proposed Budget
FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
# Activity Description
FY 2027
Modifications
GENERAL FUND:
1 Increase expenditures Annual Contribution to CERT Volunteer Program $10,200 2 Increase expenditures Increase Transfer out to Steet Lighting and Landscape Fund based on latest Engineer's Report $312 3 Decrease expenditures Correction to move Roundhouse Contribution from General Fund to State Pier & Parking Fund -$80,000 4 Decrease expenditures Apply Low and Medium Impact Cost Containment Strategies (excluding Round House factored above)
-$693,978
CHANGES TO FUND BALANCE +$763,466
STREET LIGHTING AND LANDSCAPE FUND:
5 Decrease revenues Decrease revenues based on latest estimates from the draft Engineer's Report -$312 6 Increase revenues Increase Transfer In/Subsidy from the General Fund $312 CHANGES TO FUND BALANCE $0
GAS TAX FUND:
7 Increase revenues Additional revenues for Gas Tax funding based on new revenue estimates from May 2026 Governor's Revised Budget for FY 2027
$5,647
CHANGES TO FUND BALANCE +$5,647
Remaining modifications on next slide
48CITY 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.” FOLLOW UP ITEMS FROM MAY 5, 2026
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
# Activity Description
FY 2027
Modifications
CIP FUND:
8 Decrease expenditures De-obligate CIP projects based on direction from the May 12, 2026, CIP Budget Presentation, including the following projects: City Facility Renovations, Project at 400 Manhattan Beach Boulevard Project, Begg Pool Facility Upgrades, and the Sand Dune Park Improvement Project -$4,702,357
9 Increase expenditures Reallocate $4,702,357 in funding for Senior & Scout Community Center Renovation based on direction from the May 12, 2026, CIP Budget Presentation $4,702,357
CHANGES TO FUND BALANCE $0
STATE PIER & PARKING FUND:
10 Increase expenditures Move Roundhouse Contribution from General Fund to State Pier & Parking Fund as an eligible expense for maintenance and repairs
$80,000
11 Increase expenditures CIP Related: Move up the Upper Pier Parking Lots Railing Replacement Project from FY 2028 to FY 2027
$200,000
CHANGES TO FUND BALANCE -$280,000
Complete List of Modifications to Proposed Budget
49CITY OF

MODIFICATIONS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION

GENERAL FUND BUDGET ORIGINAL

PROPOSED
BUDGET

REVISED
FOR

ADOPTION
ONGOING REVENUES $118,965,764 $118,965,764
ONGOING EXPENDITURES $116,993,996 $116,230,530
STRUCTURAL SURPLUS/(DEFICIT) $1,971,768 $2,735,234
TRANSFER IN FROM COUNTY LOTS FUND $146,750 $146,750
ONE-TIME EQUIPMENT ($436,900) ($436,900)
TRANSFER OUT TO STREET LIGHTING FUND ($270,376) ($270,688) TRANSFER OUT TO CIP FUND ($5,000,000) ($5,000,000)
TRANSFER OUT TO INSURANCE FUND ($6,000,000) ($6,000,000) DECREASE IN FUND BALANCE ($9,588,758) ($8,825,604)
50CITY OF

MODIFICATIONS
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION
Section 115 Trust Fund Balance projected to be $6.5 million in FY 2027 General Fund Equity Transfers Type of Transfer
FY 2027
Amount
Street Lighting & Landscape Fund Transfer Out ($270,688) CIP Fund Transfer Out (5,000,000)
Insurance Fund Transfer Out (6,000,000)
County Parking Lots Fund Transfer In 146,750
Section 115 Trust Fund Transfer Out Paused
TOTAL TRANSFERS IN GENERAL FUND ($11,123,938)
General Fund Balance impacted by interfund transfers:

Projected General Fund Reserve Ending Balances in FY 2027 Reserve Type FY 2027 Amount
20% of Expenditures Policy $23.2 million
Economic Uncertainty $ 0
Unreserved Fund Balance $ 2.4 million
ENDING FUND BALANCE $25.6 million
52CITY OF

1. Conduct a Public Hearing for Budget Adoption and Gann Limit Appropriations on June 2, 2026

2. Incorporate any Cost Containment Measures

3. Move forward with any Revenue Enhancements

4. Confirm modifications to FY 2027 Budget

5. Adopt Resolution No. 26 -0049 adopting the FY 2027
Operating Budget as Proposed and Amended in Exhibit “A”

6. Adopt Resolution No. 26 -0050 establishing the Gann
Appropriation Limit for FY 2027
 Remaining appropriation capacity: $28,500,424
 Available capacity as a percent of the limit: 24.83%

RECOMMENDATION
JUNE 2, 2026
FY 2027 BUDGET PUBLIC HEARING & ADOPTION

QUESTIONS
• June 2, 2026

Manhattan Beach City CouncilJune 2, 2026

Manhattan Beach City Council
June 2, 2026