Midyear
Financial Report
FY 2025-26 Midyear Review
Financial Services Department
March 17, 2026
2 • Fund Balance Summary
• Recommended Revenue & Expenditure Adjustments
• Decision Packages
• Capital Project Status Update
• FY 2026-27 Cost Savings/ Considerations
• Commission Input
• Recommendations
Overview
3 Estimated Ending Fund Balance
Before Adjustments
Estimated Beginning Fund Balance $3,151,678
Set Aside for Adopted Budget 1,258,968
Adopted Budget Revenues & Transfers In 129,095,178
Expenditures & Transfers Out (130,279,026)
Modifications (Net) (73,150)
Estimated Ending Fund Balance $3,153,648
4 General Fund FY 2025-26 Revenue ($ in millions)
Category
FY 25-26
Adopted Budget
FY 25-26 with
Amendments &
Transfers
FY 25-26 with
Midyear Revisions
Delta
Midyear
Taxes 85.2 84.7 84.7 (0.6)
Licenses & Permits 3.0 3.0 3.0 -
Fines & Forfeitures 1.7 1.7 1.7 -
Intergovernmental 0.2 0.2 0.2 -
Use of Money/ Property 3.3 3.2 3.2 (0.1)
Charges for Service 26.5 30.6 30.6 3.5
Other Revenues 2.8 3.4 3.4 0.6
Total $122.7 $126.7 $126.7 $3.4
Transfers In 6.4 6.4 6.4 -
Total with Transfers $129.1 $133.1 $133.1 $3.4
Other Revenue includes Donations / Reimbursements from other entities/ Sale of Property Revenue
5 General Fund FY 2025-26 Expenditure ($ in millions)
Category FY 25-26
Adopted Budget
FY 25-26 with
Amendments &
Transfers
FY 25-26 with
Midyear Revisions
Delta
Midyear
Personnel 49.8 49.7 49.7 (0.001)
Fringe Benefits 22.0 22.0 22.0 -
Materials and Supplies 2.8 2.8 2.8 -
Maintenance & Operations 0.8 0.8 0.8 -
Contracts and Services 8.6 9.4 10.4 1.0
Internal Services 30.8 30.8 35.1 4.3
Capital Outlay 0.0 0.0 0.0 -
Total $114.8 $115.5 $120.9 $5.4
Transfers Out 15.3 15.3 17.6 2.3
Total including Transfers $130.1 $130.8 $138.5 $7.7
Expenditure
6 Revenue Adjustment Detail
• Taxes: -$0.6M
• Property Tax: +$0.7M - moderately better than anticipated revenue projections related to 3.6% assessed valuation
growth
• Property Transfer Tax: +$0.4M – better than anticipated revenue, similar to prior year receipts, with trend through December
• Sales Tax: -$0.4M reduction based on updated projections; decrease consistent with statewide trends
• Transient Occupancy Tax: -$0.6M reduction based on lower performance; trend is common across South Bay
• Franchise Fees: -$0.6M reflecting continued trend of lower than expected prior year revenue
7 • Other Revenue: $1.6M
• Charges for Service & Use of Money and Property: +$1.0M - Parking meter, McCormick Ambulance fees, Developmentrelated fees above projections; offset by rental revenue decreases:
• One-time Payments: $0.6M – Settlement reimbursement and Google/ Tata agreement bonus payment
• Overhead: $1.4M
• Overhead: +$1.4 million – reflects increase to City’s administrative costs; 9% increase largely reflects personnel costs; offset by expense
Revenue Adjustment Detail
8 Spending Adjustment Detail
• Authority-Funded Reserve: $2.3 million
• Weaker than projected tourism demand
• Brand-required hotel refresh expenses
• Internal Services: $2.9 million
• Self-insurance: +35% related to valuation of liability and workers’ compensation premiums and claims
• Vehicle Maintenance: phases in prior year accelerated Fire Department purchases
• Other: primarily reflect personnel/ operations costs
increases
• Estimated Salary Savings: $2.4 million
• Budget methodology changes and regular staff turnover PLAN FY 24-25 FY 25-26 Delta %
Building Occupancy 3,698,216 3,979,482 281,267 8%
Sewer 40,169 30,260 (9,909) -25%
Emergency Communications 3,492,526 3,930,857 438,331 13% Information Technology 5,276,921 5,163,889 (113,033) -2% Major Facilities Repair 127,172 249,112 121,940 96%
Overhead 14,355,649 16,095,789 1,740,140 12%
Self-Insurance 7,615,463 10,247,129 2,631,666 35%
Vehicle Replacement 4,874,499 5,434,666 560,167 11%
GRAND TOTAL 39,480,614 45,131,184 5,650,570 14%
Internal Services
10 Decision Packages
General Fund
• Program Changes, net zero impact
• Paramedic Assessment Fee Contract
• Contract Building Plan Review
Other Funds
• Grant/ External Funding Adjustments
• CDBG/ Proposition 68/ Measure A/ John Parsons Funding • Staffing Reorganizations (IT and Public Works)
• Refuse Rate Adjustment
• Vehicle Replacement Fund purchases
11 Estimated Ending Fund Balance
General Fund
• Anticipated approximately $1.27 million ending fund balance following proposed changes
• Propose no action pending budget discussion/ future needs FY 25-26 CIP Update
City Council
March 17, 2026
5 6
15 41
16 19
6 Sewer Projects Drainage Projects
Park Projects Street Projects
Waterfront Projects Public Facility Projects
General Improvement Projects
Total number of capital projects:108
Street improvements- 41
Public facility improvements- 19
Park improvements- 15
Waterfront improvements- 16
Drainage improvements- 6
Sewer improvements- 5
General improvements- 6
21 CIPs have been completed in FY 2025-26
Background
FY 2026 CIP Project Summary
FY 2025-26 (as of 3/11/26)
Projected FY 2025-26
(June 2026)
Projects currently in Design 25 25
Projects currently in Procurement 11 14
Projects currently in Construction 8 16
Completed Projects (as of 3/11/26) 21 28
CIP Projects FY 2025
FY 2026 CIP Fund Type and Totals
Five-Year History
$13.3 $13.5
$20.4
$24.5 $23.9
$15.0
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-
24 FY 2024-
25 FY 2025-
26 (as of
3/11/26)
millions
Expenditures by Fiscal Year
CIP Projects per Fiscal Year
FY 2021-22* FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 (as of 3/11/26) Total Projects 112 122 130 120 108
Projects in Design 26 21 20 20 25
Projects in Procurement NA NA 11 12 11
Projects in Construction 10 22 30 30 8
Completed Projects 7 20 25 22 21
Expenditures (millions) 13.5 20.4 24.5 23.9 ~15
*Staffing down 20%
Note: Staffing Levels for CIP is
approximately 7 FTE
26 21 20 20 25
10 22 30 30
8 7
20 25 22
21 0
10 20
30 40
50 60
70 80
FY 2021-22* FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 (as of 3/11/26)
Projects by Fiscal Year
Projects in Design Projects in Construction Completed Projects Cost Reductions/
Considerations
17 18
Crossing Guards
Current Status
• 27 locations, $0.6 million
• $0.2 million core budget
• Uses City staff and contract
Current Staffing
Staffing Type # Locations Amount Cost/Location
City Staff-Part Time 22 414,442 18,838
Contract Services 5 138,158 27,632
Total 27 $552,600
19 Crossing Guards
20 Earthquake Insurance
• Property Insurance: $1.7 million premium, including earthquake • Earthquake $1 million premium covers $234 million assessed value • Maximum payout $100 million
• Recommend reducing covered structures or eliminating
earthquake premium
• Potential Savings: $0.1 million to $1.0 million
• Public Safety Buildings: $0.1 million
• Other Low Risk Facilities: $0.5 million
• Remove Earthquake Coverage: $1.0 million
21 Other Insurance Considerations
General Liability Insurance-SIR (Deductible)
• Self-insured retention is currently $500,000
• Evaluating increase to $1 million for potential $700,000 savings Property Damage/ Non-Earthquake
• Deductible is $50,000
• Evaluate increase for potential additional marginal savings Timing
• Earthquake insurance: notify provider in March
• SIR & Other: return with additional detail for FY 2026-27 budget 22 Pension Liability Update
• Current status: $51 million UAL, 92.9% funded, $4.2 million annual payment
• Projection including FY 2024-25 returns shows positive impact to UAL and funded level; better than projected outyear payments • Continue to monitor and consider in ongoing projections 23 Commission Input
• Budget & Finance Commission review 03/12/26
• Recommendations/ Comments
• Financial sustainability is a priority
• City should plan for multiple scenarios, including further revenue decreases
Next Steps
24 FY 2026-27 Budget: May 16
25 • Receive and file the report for discussion and possible action regarding the Fiscal Year 2025-26 midyear budget review
• Receive and file a presentation on the status of the City’s Capital Improvement Projects
• Provide direction on identified FY 2026-27 Cost Savings • Adopt by 4/5ths vote and by title only Resolution No. CC 2603-014, a Resolution of the City of Redondo Beach,
California, modifying the budget for Fiscal Year 2025-26 Recommendations
Midyear
Financial Report
FY 2025-26 Midyear Review
Financial Services Department
March 17, 2026
Assessment
Crossing Guard
Location School # Bikes # Peds Total Bike/Ped1
# Vehicles2
Total # Of Lanes
Approaching2
Speed Limit
>25?
Signalized
Intersection?
Multilane Street
Approach?
Meets Suggested CAMUTCD
Adult Guard Thresholds3?
Potential Locations for AAA School Safety
Patrol Location4?
Flagler/Havemeyer Jefferson 57 74 131 586 4 Yes
Flagler/Morgan Jefferson 49 65 114 742 4 Yes
Harkness/Carlson Jefferson 14 102 116 490 2 Yes
Harkness/Morgan Jefferson 19 129 148 557 3 Yes
Julia/Serpentine Alta Vista 8 136 144 398 3 Yes
Prospect/Camino Real Alta Vista 18 46 64 3190 12 X X X X No Julia/Knob Hill Alta Vista 3 132 135 734 3 Yes
Prospect/Knob Hill Alta Vista 18 69 87 2233 10 X X X X No Rindge/Plant Lincoln 16 233 249 261 3 Yes
Robinson/Vail Lincoln 24 92 116 470 4 Yes
Mackay/Nelson Madison 8 129 137 111 3 Yes
PVB/Helberta Tulita 10 55 65 2275 8 X X X No
Prospect/Helberta Tulita 5 194 199 1947 7 X X X No
Prospect/PV Blvd. Tulita 7 49 56 2794 13 X X X X No
Prospect/Ave G St. Lawrence (Pvt.) 10 97 107 1255 5 X X X No Emerald/Lucia Parras MS 63 92 155 761 6 X Yes
Vincent/Lucia Parras MS 69 68 137 1003 4 X Yes
Beryl/Prospect Beryl Hgts 13 37 50 3519 11 X X X X No
Beryl/Maria Beryl Hgts 33 191 224 1364 8 X X X No
Grant/Aviation Birney 27 35 62 2316 9 X X X X No
Grant/Green Birney 21 169 190 1742 8 X X X No
Inglewood/182nd Washington/Adams 10 39 49 3093 7 X X X X No Grant/Felton Washington/Adams 174 128 302 1892 8 X X X No Inglewood/Ralston Washington/Adams 14 26 40 2827 7 X X X X No Ralston/Lilienthal Washington/Adams 50 133 183 597 7 Yes Ripley/Felton Washington/Adams 217 664 881 589 4 X No
Ripley/Lilienthal Washington/Adams 37 324 361 665 4 X No Additional Intersection Evaluation (No Guard Currently) Aviation/Ford N/A 47 29* 76 2509 6 X X X N/A No
Artesia/NRBB N/A 92 38 130 2000 4 X X X N/A No
Inglewood/Grant N/A 18 38 56 2960 13 X X X N/A No
Notes: 1Darker green bars show relatively higher bike/ped volumes. 2Darker red bars show relatively higher vehicular volumes or higher number of approach lanes (formal or defacto). 3California MUTCD (CAMUTCD), which governs public street design, provides guidance thresholds for when an adult crossing guard could be deployed. 4 Intersection Conditions, volumes, and other factors were used to determine location feasibility to vacate and/or introduce the AAA School Safety Patrol Program. *Please note that all 29 pedestrians at Aviation/Ford were adults. No students were identified crossing during AM school peak period. 90 min AM Data by RBPD Intersection Conditions
3/17/2026
Crossing Guard Locations
1 inch = 3,000 feet
±
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BNSF RR
BNSF RR
GRANT AVE
S PACIFIC COAST HWY
S PACIFIC COAST HWY
N
PACI
F
IC
COAST
HWY
N
PACI
F
IC
COAST
HWY
KNOB HILL AVE
KNOB HILL AVE
PAC
I
F
I
C
COAST
HWY
PAC
I
F
I
C
COAST
HWY
DEL AMO ST
DEL AMO ST
INGLEWOOD AVE
ANITA ST
DIAMOND ST
N
S
E
P
U
L
V
E
D
A
B
L
V
D
N
S
E
P
U
L
V
E
D
A
B
L
V
D
ARTESIA BLVD
N
HARBOR
DR
N
HARBOR
DR
AVIAT
ION
BLV
D
AVIAT
ION
BLV
D
TORRANCE BLVD
TORRANCE BLVD
ESPLANADE
182ND ST
N
CATALI
NA
AVE
N
CATALI
NA
AVE
N BROADWAY
N BROADWAY
BERYL ST
S
C
ATA
L
NI A
AV
E
S
C
ATA
L
NI A
AV
E
CAMINO REAL
CAMINO REAL
HAWTHORNE BLVD
S BROADWAY
KIN
G
S
D
A
L
E
AVE
KIN
G
S
D
A
L
E
AVE
190TH ST
S
P
R
O
S
P
E
C
T
AV
E
S
P
R
O
S
P
E
C
T
AV
E
PALOS VERDES BLVD
PALOS VERDES BLVD
HERONDO ST
HERONDO ST
Valor
Christian
Academy
Civic
Center
Transit
Center
AES
USPS
USPS
South
Bay
Galleria
Beach
Cities
Health
District
Pacific
Crest
Cemetery
SCE
ROW
SCE
ROW
Pier
So
Cal
Gas
Wylie
Sump
Riviera
Village
Cresta
Mobile
Home
Park
Hermosa
View
King
Harbor
The
Kensington
Bishop
Montgomery
High
School
Green
Elementary
School
Cal
Water
Mira
Costa
High
School
Towers
Elementary
West
Torrance
High
School
Victor
Elementary
School
Alta
Beryl
Birney
Jefferson
Lincoln
Madison
Parras
Tulita
Adams
St
Washington
Seaside
Lagoon
Czuleger
Park
Perry
Park
Veterans
Park
Alta
Vista
Park
Anderson
Park
Beach
Dominguez
Park
McMaster
Park
El
Nido
Park
Columbia
Park
Entradero
Park
La
Romeria
Park
Sunny
Glen
Park
Delthorne
Park
Victor
Park
Paradise
Park
Sea-Aire
Golf
Course
Hickory
Park
El
Retiro
Park
South
Valley
Clark
Stadium
Hermosa
Community
Center
Greenbelt
Madrona
Marsh
Preserve
MANHATTAN BEACH
HERMOSA BEACH
MANHATTAN BEACH
REDONDO BEACH
LAWNDALE
TORRANCE
LAWNDALE
REDONDO BEACH
TORRANCE
REDONDO BEACH
HERMOSA BEACH
REDONDO BEACH
Adams & Washington K-8 (6)
Alta Vista Elementary (4)
Beryl Heights Elementary (2)
Birney Elementary (2)
Jefferson Elementary (4)
Lincoln Elementary (2)
Madison Elementary (1)
Parras Middle School (2)
St Lawrence Martyr (1)
Tulita Elementary (3)
1 Earthquake Insurance
Earthquake Insurance: Major Covered Facilities
Facility Appraised Value 2025 Earthquake
Premium Cost Proposed Change
Pier Parking Structure 44,152,000 194,885
Civic Center Main Library 32,119,000 152,341 Remove
Performing Arts Center 21,668,000 107,204 Remove
North Branch Library 17,544,000 131,333 Remove
Civic Center Garage 16,047,000 70,628 Remove
Monstad Wooden Pier 13,515,000 59,542
City Hall 13,266,000 66,973
International Boardwalk Garage 11,672,000 51,512
Aviation Park Gymnasium 8,744,000 39,294 Remove
Main Police Station 7,550,000 38,415 Remove-Public Safety Fisherman's Wharf North Parking Structure 7,103,000 31,248 Veteran’s Park Library 4,595,000 20,215 Remove
Fire Station #1 3,873,000 18,092 Remove-Public Safety
Kincaid's Restaurant 3,404,000 14,975
Police Department Annex 3,325,000 15,663 Remove-Public Safety Fire Station #2 3,116,000 14,464 Remove-Public Safety
Fire Station #3 Harbor Patrol 2,228,000 10,312 Remove-Public Safety Total $213,921,000 $1,037,096