BLUE FOLDER ITEM
Blue folder items are additional back up material to administrative reports and/or public comments received after the printing and distribution of the agenda packet for receive and file.
CITY COUNCIL MEETING
JUNE 16, 2026
L.1. CONTINUED PUBLIC HEARING TO CONSIDER THE FISCAL YEAR 2026-27 PROPOSED BUDGET, 2027-2031 FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM, AND
ASSOCIATED BUDGET RESPONSE REPORTS
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2606-043, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING AN ANNUAL BUDGET FOR FISCAL YEAR 2026-27
a. Reconvene the Public Hearing, take testimony;
b. Close the Public Hearing;
c. Receive and file Budget Response Reports;
d. Adopt by title only Resolution No. CC-2606-043, incorporating the adjustments identified in BRR #1 and the final City Council motion; and
e. Direct staff to take actions necessary to implement the fee and rate changes approved as part of the Adopted Budget
CONTACT: STEPHANIE MEYER, FINANCE DIRECTOR
• Budget and Finance Commission Letter
• North Redondo Beach Business Association Email
• BRR #1 (Revised)
• BRR #50
Budget and Finance
Commission
To: Redondo Beach City Council
From: Redondo Beach Budget and Finance Commission
Date: June 12, 2026
The Budget and Finance Commission has a few comments regarding the fiscal 2027 budget. We met last night and I was asked to convey to you some of the comments and conclusions of that meeting.
We endorse the somewhat conservative approach shown in the draft budget for fiscal 2027. Spending is lower than the mid-year estimate for fiscal 2026. The reality is that revenues are not growing as quickly as expenses in many areas.
Several revenue sources show potential growth over the next few years, but the timing and amount of that growth is uncertain. Until that revenue growth is realized, it seems wise to plan for continued budgetary challenges. The Commission has three suggestions which we think are appropriate even if those budget challenges did not exist.
First, it seems wise to aggressively approach efficiency planning. There may be ways to do more with less in the future. Budgetary challenges affect support activities such as financial services, HR and IT as well as primary activities such as fire, police, streets and parks. We should explore ways in which AI, best practices, and organizational changes might provide less expensive solutions to operational issues. The steps being undertaken by the City Manager in fiscal 2027 to closely analyze any requested hires should become part of long term operations. We suggest first approaching support services with this analysis.
Other areas of city operations could come later.
Second, as Council has long recognized, business growth is critical to the future of the city. The importance of the economic development arm of city operations can’t be over emphasized. We need more businesses operating profitably in key areas of the city. Quality of life issues are important, both for residents and businesses.
Finally, a well structured and evolving strategic planning process is very important. A well thought out plan helps to focus our attention on critical areas of growth and operations. Some on the Commission might have suggestions in this area.
We are happy to work with Council on all these issues. It is our hope that Redondo continues to be an attractive and desirable place to live and work.
Thank you,
Jerry Woodham, Chair
From: Mickey Marraffino
To: James Light; Scott Behrendt; Zein Obagi Jr.; Paige Kaluderovic; Chadwick B. Castle; Brad Waller Cc: North Redondo Beach Business Association; Marc Wiener; Mike Witzansky; Katherine Buck; Dave Charobee; Elizabeth Hause; Stephanie Meyer
Subject: NRBBA Budget Request: $50,000 to Restore Storefront Improvement Funding in North Redondo Beach Date: Sunday, June 14, 2026 5:22:37 PM
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Dear Mayor Light and City Council Members,
On behalf of the North Redondo Beach Business Association (NRBBA), I am writing to respectfully request that the City restore Storefront Improvement Program funding and direct it to North Redondo Beach in the coming budget. The program slated for elimination was funded at $58,000. Understanding the City's budget pressures, we request only $50,000 which would be directed specifically to North Redondo Beach.
We brought this request forward at the June 2 City Council Meeting because we understand the Storefront Improvement program is slated for elimination AND because Storefront Improvement funding has not reached North Redondo Beach since 2017, nearly a decade ago.
Our commercial corridor has gone without this resource while the need for it has only grown.
We also bring it forward because the City has shown a real commitment to beautification and placemaking in alignment with the AACAP, including roughly $480,000 in local public art.
NRBBA shares that vision. Storefront improvement is a natural complement to it: a modest, cost-shared investment that helps business owners refresh facades, paint murals, and improve what residents see every day along our commercial streets.
The City's own public art survey reinforces the point. Of 171 respondents, the art people most enjoy is murals and functional art — benches, bike racks, and the like. A restored Storefront Improvement Program delivers exactly that along the commercial corridor. When private property owners paint murals and refresh their facades with the shared expense of the program, it further enhances the potential for economic development activity along the Artesia Aviation Corridor.
Business owners are telling us right now that they want to paint murals, refresh their facades, and invest in their storefronts. They want to be proud of what people see when they walk or drive by. They need a program partner to make it happen. It's time to bring the Storefront Improvement Program back to North Redondo. North Redondo Beach has tremendous, untapped potential. Our businesses are resilient, our residents are engaged, and our location is prime. What has been missing is investment — and partnership.
NRBBA has formed a dedicated Economic Development Task Force, staffed by members with deep expertise in commercial real estate and economic development. We understand how to attract businesses, increase foot traffic, and revitalize corridors — and we want to put that expertise to work for this city.
That offer to partner is more important now than ever. With the Economic Development Director position temporarily eliminated and its responsibilities rolled into Community Development—an already very busy department—NRBBA's expertise and capacity can help carry this work forward. We are ready to be a resource.
Restoring this funding isn't just about paint and signage. It's a signal — to business owners, to investors, and to residents — that this city believes in this neighborhood. For $50,000, the City can extend its placemaking vision to the very corridor where it will be seen, used, and appreciated most.
NRBBA is here. We're organized. We're ready. We ask that as you build this budget, you restore Storefront Improvement funding for North Redondo Beach — and partner with us to put it to work.
Thank you for your time and your service to our community.
Warm regards,
Mickey Johnson
President, North Redondo Beach Business Association (NRBBA) 310-433-0547
Budget
FY 2026-27
BRR #01
CITY OF REDONDO BEACH
Budget Response Report
#01 (Revised)
June 16, 2026
Question:
What changes or corrections have been made to the FY 2026-27 Proposed Budget and 2027-2031 CIP since the initial publishing on May 14, 2026? Response:
FY 2026-27 Proposed Operating Budget Changes
Page Revision & Justification
General Information
City Organizational Chart
(p. 28)
Revised Boards and Commissions to reflect
reorganizations effective in FY 2024-25.
Financial Summaries
Estimated Fund Balance Changes
(p. 76-80)
Revisions to the Measure W (217) and
Intergovernmental Grants (230) Fund balances
reflecting funds transfer related to two competitive
grants.
City Manager’s Message
Decision Package Summary
(p. 19)
Update to Decision Package #24 text in the narrative
summary table to correct the one-time appropriation
amount from $25,600 to $12,800.
Departments
City Clerk’s Office
(p. 169)
Update Org Chart and Summary of Personnel to
correct position titles.
City Treasurer’s Office
(p. 181)
Update to add a Goal to Performance Measures.
City Attorney’s Office
(p. 185-186)
Update Org Chart and Summary of Personnel to
match position locations with funding sources.
Financial Services
(p. 220)
Update Org Chart to correct position title.
Community Services Department
(p. 279-280)
Update Org Chart to match position location with
funding sources.
Updated Performance Measures
Budget
FY 2026-27
BRR #01
2027-2031 Capital Improvement Program (CIP) Budget Changes Project Descriptions
Revisions to project descriptions throughout the book to include more detail including (where applicable) past, current, and future project activities/timelines and funding history/need. Attached are examples of four projects/types: (1) Perry Park Fencing, (2) Pickleball at Aviation Park, (3) Sidewalk Improvements and Repairs, and (4) Residential Rehabilitation
In addition to the items shown above, staff has made corrections to formatting, grammar, and typographical errors throughout the document.
Budget
FY 2026-27
BRR #50
CITY OF REDONDO BEACH
Budget Response Report
#50
June 16, 2026
Question:
What are the options available to reduce the subsidy needed for the Street Landscape and Lighting District? What are the City’s annual tree trimming costs? How much of the annual cost is assigned to the Street Landscape and Lighting District? Can the City’s tree trimming costs be reduced?
Response:
The Street Lighting and Landscape District (District) was formed to provide ongoing maintenance, landscaping, streetlighting, and traffic signals within the City of Redondo Beach. The Engineer’s Report for the District submitted to City Council on May 5, 2026 estimates total costs at $2,691,178 for FY 2026-27. The Report estimated that the assessment placed on residents to fund the District generated $1,530,600 in revenue.
The General Fund Contribution to offset the total cost is estimated at $1,161,394 in FY 2026-27, with the table below summarizing the revenue and cost breakdowns:
Budget
FY 2026-27
BRR #50
Personnel
Personnel costs assigned to the District total $1,098,870. There are 7.99 fully-loaded FTEs charged to the District. However, that allocation is distributed across 15 employees who perform various roles related to District operations from the Public Works Engineering, Streets, Parks, and Administrative Divisions. City employees perform a wide range of essential services for the District, including administrative support and engineering oversight, routine maintenance of traffic signals, street lighting and related infrastructure, emergency response and repairs, debris and solid waste removal, and the cleaning and painting of walls and other structures to remove graffiti and maintain the public right-of-way. Of the total employee count, 4.5 FTEs are assigned to the Public Works Parks Division for landscape maintenance, mowing, tree trimming, and irrigation throughout the District.
Reducing the General Fund subsidy would make it necessary to reduce the number of employees assigned to the District and decrease the services provided by these employees.
Budget
FY 2026-27
BRR #50
Utilities
Combined costs for energy and other utilities total $927,667. Electrical expenses related to lighting and traffic signal operations comprise the vast majority of this cost, with water for irrigation representing the next largest expense.
Reducing the electrical costs associated with street lighting would require careful planning and consideration of applicable regulations, public safety requirements, and community impacts. While there may be opportunities to lower costs through targeted brownouts or selective reductions in street lighting, any such measures would need to be evaluated thoroughly to ensure they do not compromise safety or regulatory compliance. Looking forward, Engineering staff is looking at ways to reduce the cost of traffic signal operations.
One way to do this would be to introduce traffic circles in lieu of signal controls at certain intersections.
While the City continues to reduce water consumption by replacing turf with more droughttolerant plantings, selecting water-efficient species, and installing improved irrigation systems, a baseline level of watering remains necessary to protect and sustain the City's tree canopy and landscape infrastructure. Maintaining these assets requires ongoing investment in water to ensure their long-term health and viability. Reducing irrigation beyond a certain point can negatively impact street trees, landscaping, and the City's investment in these assets. The City witnessed these impacts during the drought of the 2010’s when watering was restricted by the State. Following the end of the drought, several projects were funded to repair and restore damaged landscaping.
Supplies & Operations and Contracts & Professional Services Materials and supplies are purchased by various Public Works Divisions to support their efforts in the District, including electrical supplies, along with landscaping and irrigation equipment for maintenance and repairs. The Department also manages a number of professional service contracts to perform critical functions within the District.
Traffic Signals
The City contracts with Yunex, LLC, to perform maintenance and repair for all traffic signals in the District under the control of the City. Yunex is contracted to perform quarterly routine inspection of all traffic signals, pedestrian signal heads and push buttons, and controller cabinets, at every traffic-signaled intersection. This includes inspections, adjustments, cleaning, testing and minor repairs or parts replacements. In addition, Yunex is contracted to respond to emergency call-outs on a 24/7 basis and for maintenance that can’t be addressed by City staff. Funding is also required for California Department of Transportation and Los Angeles County Public Works for the City’s portion of the utilities and maintenance cost associated with infrastructure along Hawthorne Blvd, PCH, and Artesia Blvd. A reduction in either proactive or reactive services provided by our contractor could result in greater safety concerns and potential legal exposure.
Budget
FY 2026-27
BRR #50
Tree-trimming
The City contracts with West Coast Arborists (WCA) for regular tree-trimming, utilizing a grid system to inspect trees and carryout a regular pruning cycle. WCA also responds to emergency cases and community requests as directed by the Park’s Division Manager. $119,590 of the District’s core budget is assigned to tree-trimming but does not cover all tree-trimming expenses. It is well below the cost of the annual work effort, which varies over a four-year cycle depending on the portion of the City (grid) being serviced. Annually, Public Works requests an adjustment to the core budget for the Street Landscaping and Lighting Fund for tree trimming.
This year, the City will service Grid 4. The total estimated amount required to complete the grid is $486,779 based on identified need in the grid and on the City's Agreement with West Coast Arborists. The portion of that total that is related to District expenses is estimated at $352,996, well above the core District budget of $119,590.
Public Works considered submitting its annual tree-trimming Decision Package for the unfunded expenses projected for FY 2026-27. An additional $240,906 would be needed to complete all planned tree-trimming in Grid 4 and to conduct emergency inspections and maintenance. This Decision Package was not recommended for inclusion in the final Budget.
Public Works is currently working to determine how to conduct tree-trimming operations in the District in FY 2026-27 while staying within the existing District core budget of $119,590. This may include reducing inspection frequency and planned pruning in the Grid and deferring that maintenance to future years. If core funding is also reduced, the ability to utilize WCA will be limited to targeted and emergency inspections and pruning, with a primary focus on safety and tree health to reduce the risk of tree failure. City staff may also be further deployed to carryout these emergency operations. As with other expense categories, further cuts could have a negative impact on the health of the City’s tree canopy.