PowerPoint Presentation — Manhattan Beach City Council, October 6, 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 2026 YEAR-END

BUDGET UPDATE
October 6, 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.” FY 2026 YEAR-END BUDGET UPDATE
OCTOBER 6, 2026
FY 2026 YEAR-END BUDGET UPDATE
• Tonight’s Agenda:
º Overview
 FY 2026 Audit and financial statements are being finalized º FY 2026 Year-end Budget Adjustment
º FY 2026 General Fund Highlights
º Financial Performance Indicators
Fiscal Year Begins
July 1
First Quarter
Update
November
Mid-Year
Update
February
Fiscal Year Ends
June 30
Year-end Audit
October/
November
Annual
Comprehensive
Financial Report
January
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GENERAL FUND HIGHLIGHTS
OCTOBER 6, 2026
FY 2026 YEAR-END BUDGET UPDATE
• FY 2026 General Fund revenues exceeded
expenditures by $17.6 million, resulting in an increase to fund balance
 Includes the replenishment of reserves from $16.6
million in one-time bond proceeds associated with
2025 COPs (400 MBB and Public Safety Radios)
 Factors net transfers totaling $8.6 million (now
included as part of revenues and expenditures)
X Does not include encumbrances of $1.4 million,
which are carried forward to new fiscal year
• Result: Year-End Fund Balance of $43.3 million
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.” FY 2026 BUDGET ADJUSTMENT
OCTOBER 6, 2026
FY 2026 YEAR-END BUDGET UPDATE
• Two funds require a year-end budget appropriation
due to final expenditures exceeding the budget
º Insurance Reserve Fund – $2,175,000
 Expenditures again exceeded the budget due to
unprecedented claims activity in the last four fiscal years º County Parking Lots Fund - $43,000
 Per County Agreement, any excess revenue net of
expenditures is transferred to the General Fund
 Actual Revenues exceeded projections
 Therefore, the transfer amount to the General Fund
exceeded the original budget
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FINANCIAL PERFORMANCE INDICATORS
OCTOBER 6, 2026
FY 2026 YEAR-END BUDGET UPDATE
• First introduced at the Finance
Subcommittee meeting on September 22,
2026
• Provides greater transparency on the City’s
current financial position
• Identifies 10 key areas of focus for measuring
the City's financial health including:
1) General Fund Revenue Trends
2) General Fund Expenditure Trends
3) General Fund Structural Balance
4) General Fund Budgetary Fund Balance
5) Debt Burden
6) Pension Obligations Burden
7) Other Post Employment Benefit (OPEB)
Obligations
8) Insurance Reserve Funded Status
9) Significant Equipment Replacements
and Key Projects Funded Status
10) Capital Asset Condition Assessments

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UPCOMING BUDGET DISCUSSIONS
OCTOBER 6, 2026
FY 2026 YEAR-END BUDGET UPDATE
Tentative Dates Include:
º November 17, 2026: FY 2027 Quarterly Budget
Update
 Will present Cost Containment Strategies for FY
2027 and beyond
º February 16, 2027: FY 2027 Mid-Year Budget
Update
º May – June 2027: FY 2028 Budget Meetings
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RECOMMENDATION
OCTOBER 6, 2026
FY 2026 YEAR-END BUDGET UPDATE
Staff recommends that the City Council:
1) Receive Preliminary Year-End Budget-to-
Actual Financial Reports;
2) Receive Financial Performance Indicators;
and
3) Appropriate funds in FY 2026:
º $2,175,000 in the Insurance Reserve Fund
º $43,000 in the County Parking Lots Fund

Manhattan Beach City CouncilOctober 6, 2026

Manhattan Beach City Council
October 6, 2026