TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Philippe Eskandar, City Manager
Nicole Tibbet, Community Engagement Manager
DATE: March 12, 2025
SUBJECT: SELECTION OF FY 2025-26 PRIORITY INITIATIVE
PROPOSALS
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
Engaged and Connected Residents
Attractive, Complementary Business District
Beautiful, Preserved, Single-Family Neighborhoods
Efficient, Responsive, and Effective City Services
Inviting and Relevant City Facilities
Safe Community
Well-Maintained Infrastructure
BACKGROUND
As the financial blueprint for the City government, the annual budget is an important document, and the process of preparing that plan of action is one of the most significant jobs performed by the City Council and City personnel during each year. Beyond serving as a financial plan for receiving and spending money to operate the City government, the budget outlines the quality and quantity of governmental services, and the method of distributing costs to the various segments of the community through collection of taxes and fees. It defines the level of services to be rendered by City departments and highlights capital purchases and projects for the upcoming fiscal year.
The public-facing portion of the budget process in San Marino typically begins at the last meeting in January of each year, with a goal of adopting the budget by the last meeting in May. The continuous improvements made over Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
previous years have yielded successfully adopted budgets each year, with last year’s budget being adopted on May 31, 2024, in advance of the beginning of the next fiscal year on July 1, 2024.
The City Council’s budget process ultimately yields operating and capital plans and includes many components along the way:
• Selecting Priority Initiatives;
• Receiving a mid-year budget presentation that also incorporates a revenue projection for next year and a long-term financial forecast; • Offering detailed feedback on staff’s recommendations for capital improvement projects and equipment;
• Offering detailed feedback on staff’s recommendations for departmental revenue and expenditure plans; and
• Offering revisions and approval of the City Manager’s recommended Operating and Capital Improvement budgets.
As per the schedule provided in Attachment 1, the City Council approved further research (including community feedback) of ten (10) possible operating budget priority initiatives, that fall into five (5) Priority Initiative Focus Themes, at the February 12, 2025, City Council meeting. Additionally, the City Council directed staff to look into an additional Priority Initiative to include updating the General Plan at that meeting. The proposed priority initiative list of eleven (11) total initiatives is the focus of today’s discussion.
DISCUSSION
In addition to the City Council initial proposal feedback session on February 12, 2025, staff has gathered priority initiative feedback through a community survey (promoted heavily in the City Manager’s Weekly Briefing emails, City Website, Social Media, newspaper, at community events, and targeted emails to community groups and stakeholders), and at a City Talk Zoom meeting hosted by the San Marino City Club. Attachment 3 of the staff report provides the results of the community survey.
With respect to the community’s engagement with the priority initiative process, staff have made some observations that will result in proposed changes to the process next year. Staff will work with the City Council to better understand these observations with an ultimate aim of building on the engagement's quantity and, importantly, helping to improve the quality as well. The four (4) week online survey that was available to the public garnered 94 responses. While this participation was a near 50% increase from what the City saw last year, it yielded comments that demonstrate a need to provide more information and background for the community to consider when providing their input.
Today, the City Council will select which of the priority initiatives to include in the draft budget proposals to be considered by the City Council in April. The list below provides a summary of each initiative and the associated budget impact:
Theme 1 – Public Safety Excellence
1. Improve Cellular Coverage – this initiative is focused on enhancing citywide cellular service with an emphasis in supporting emergency response efforts and overall public safety. By investigating and facilitating potential cell tower site locations, the City aims to address critical coverage gaps that hinder residents' ability to call 911 in emergencies. Improved coverage will also benefit Police, Fire, Public Works, and other City staff, ensuring reliable communication during crisis situations and daily operations. Additionally, this initiative would provide redundancies for public safety radio communication systems and strengthen emergency response capabilities. By prioritizing these improvements, the City is committed to minimizing life safety risks and ensuring seamless connectivity for both residents and first responders. o Budget Impact - No cost to the City for entering into an agreement with a developer of wireless communications infrastructure dedicated to improving public safety communications. The developer has committed to fund 100% of the permitting and construction costs and enter into a leasing agreement with the City to install the wireless communications infrastructure on City property, and lease space on the tower to the cell providers to improve cell coverage.
2. Explore Pedestrian and Traffic Safety Improvements – this initiative is dedicated to enhancing roadway safety through strategic traffic engineering and expert recommendations. By leveraging insights from the City's Traffic Task Force and Public Safety Commission, this initiative aims to create safer streets for both pedestrians and motorists.
Key efforts include an annual program for traffic striping, marking, and signage to ensure clear and visible roadway guidance. Additionally, improvements to traffic control devices will enhance efficiency and safety at intersections and high-traffic areas. The initiative also emphasizes the continued implementation of traffic safety recommendations, reinforcing the City's commitment to proactive measures that reduce accidents and improve overall public safety.
Through these ongoing efforts, the City strives to foster a safer and more navigable transportation network for all.
o Budget Impact - $50,000 for annual roadway striping, marking and signage throughout the City.
Theme 2 – Preserve our Residential Neighborhoods
3. Housing Element Implementation – this initiative is dedicated to advancing the City’s Housing Element goals while maintaining state certification. This initiative focuses on following through, as required by State law, with key programs outlined in the Housing Element to support responsible and sustainable housing development. Efforts include issuing a Request for Proposals (RFP) for the Stoneman Property to explore potential housing opportunities, conducting outreach to encourage Accessory Dwelling Unit (ADU) construction, and implementing various community engagement programs to inform and support residents. Additionally, the initiative prioritizes the adoption of the Safety Element to align housing policies with disaster resilience and public safety planning. To ensure continued compliance and transparency, the City will also meet annual progress reporting requirements of Housing Element certification. Through these efforts, the initiative aims to balance housing growth while preserving the character and integrity of residential neighborhoods.
o Budget Impact - No additional cost – This item is intended to be accomplished by current staff and resources already contained in the Community Development Department’s budget.
4. General Plan Update – this initiative is a strategic effort to shape the future of San Marino by updating the City's General Plan. This initiative will guide long-term growth and development while preserving the unique character of residential neighborhoods. To ensure a comprehensive and community-driven approach, the City will engage a General Plan specialist to provide expert guidance throughout the process. Additionally, a General Plan Advisory Committee, composed of community members, will be convened to offer local perspectives and insights. Public outreach will play a key role in this effort, encouraging residents to participate and share their vision for the City’s future. As part of the initiative, the City will begin updating various elements of the General Plan, ensuring it remains a relevant and effective tool for responsible planning and development. Through these efforts, San Marino aims to create a thoughtful and balanced roadmap for its future while maintaining the integrity of its residential neighborhoods. o Budget Impact - $750,000+ for a comprehensive update to the City’s existing 2003 General Plan which is a policy document that establishes a citywide vision and consistent direction for future development. It reflects community priorities and values, and includes supporting goals, policies, and implementation measures to achieve the community’s vision. The update process will be a collaborative multi-year engagement with stakeholders,
community members, local business community, decision makers, and City staff.
Theme 3 – Build Upon our Fiscal Health
5. Financially Self-Sustaining Sewer System – this initiative is focused on ensuring the long-term financial viability and functionality of the City’s sewer system. By establishing a sustainable funding model, the City aims to support ongoing capital maintenance and necessary infrastructure improvements. As part of this effort, the City will complete and implement the ongoing comprehensive sewer rate study to assess financial needs and explore equitable funding solutions. Public outreach will play a critical role in educating residents about the maintenance requirements of the sewer system and the challenges posed by its unfunded liabilities. Ultimately, the initiative seeks to implement a sewer rate structure that enables the city to maintain a reliable and efficient sewer system without compromising the fiscal stability of other vital city operations. Through these efforts, the City is committed to protecting public health, safeguarding infrastructure, and ensuring the long-term sustainability of this essential service.
o Budget Impact - No additional cost - The sewer rate study was budgeted as part of the FY 2024-25 budget. The implementation of a sewer rate will help offset approximately $270,000 in General Fund operating costs in FY 2025-26 and future years and generate a funding source for the $36,000,000+ worth of capital work the sewer system requires over the next ten (10) years.
6. Ensure Fiscal Stability Through Revenue – this initiative is designed to aid in securing the City’s long-term financial stability by evaluating and enhancing revenue opportunities. This effort aims to ensure that essential City services remain well-funded and sustainable for the future. A key component of the initiative is identifying and addressing potential inequities in payments for City services and taxes, ensuring a fair and balanced approach to revenue collection. Additionally, the City will begin preparations to place the renewal of the Utility Users Tax (UUT) on the 2026 ballot, a crucial step in maintaining a stable funding source for public services. Through these efforts, the City is committed to responsible fiscal planning that supports high-quality services while maintaining financial equity for all residents.
o Budget Impact - $5,000 for educational flyers and outreach materials.
7. Maintain Local Control of Sales Tax – this initiative is aimed at ensuring that sales tax revenue generated in San Marino remains within the community, directly benefiting residents and local services. This effort seeks to prevent outside agencies from reallocating these funds to services that may not serve San Marino’s needs. As part of the initiative, the City will explore the viability of placing a local district sales tax measure on the 2026 ballot to capture and retain the revenue that originates within the community and prevent it from being taken by outside agencies. Additionally, the initiative will assess the benefits of keeping sales tax dollars local, ensuring they are reinvested in essential services, infrastructure, and community improvements. By protecting available sales tax revenue, the City aims to maintain financial independence and ensure that taxpayer dollars are used to directly enhance the quality of life in San Marino.
o Budget Impact - $60,000 for fees related to ballot initiatives paid to the County of Los Angeles, educational flyers and outreach materials.
Theme 4 – Foster Economic Development
8. Streamline Brick and Mortar Openings – this initiative is focused on making it easier for new retail businesses to open and thrive in San Marino. By reviewing and modernizing zoning and municipal code regulations, the City aims to remove unnecessary barriers and create a more business-friendly environment. Key areas of review include parking requirements, conditional use permits, alcohol license regulations, and tenant improvement permits, each of which play a crucial role in determining how quickly and efficiently new businesses can open their doors. Additionally, the initiative prioritizes updating the City’s land use table to reflect modern economic and commercial trends.
Through these efforts, the City seeks to encourage economic growth, attract new businesses, and enhance the local shopping and dining experience while maintaining the character and charm of the community.
o Budget Impact - No additional cost – This item is intended to be accomplished by current staff and resources already contained in the Community Development Department’s budget.
9. Showcase Local Commerce – this initiative is designed to support and promote San Marino’s local businesses by leveraging the City’s media channels. This effort focuses on strengthening the relationship between businesses and the community by highlighting their contributions beyond just the goods and services they offer. As part of the initiative, the City will develop a policy for Council review that ensures business promotion aligns with community values and engagement. Once implemented, this policy will showcase local businesses, their impact, and their role in enhancing the City's economic and social fabric. By increasing visibility and fostering stronger connections between businesses and residents, the initiative aims to drive higher customer traffic, encourage local spending, and create a more vibrant and interconnected business environment in San Marino.
o Budget Impact - No additional cost- Staff will focus on policy development and implementation first with an emphasis on keeping any resulting activity within existing staff capacity and equipment.
Theme 5 – Celebrate San Marino
10. Lacy Park 100th Anniversary – this initiative is dedicated to honoring a century of history, community, and natural beauty at Lacy Park. To commemorate this milestone, the City will plan and promote a large community event that brings residents together in celebration. This event will highlight the park’s rich legacy and its role as a cherished gathering space for generations. Through thoughtful planning and marketing, the initiative aims to create a memorable experience that reflects the park’s significance, fosters community spirit, and strengthens local pride. By celebrating this historic occasion, the City reaffirms its commitment to preserving and enhancing Lacy Park for future generations to enjoy.
o Budget Impact - $15,000 for various programming, services, supplies, and marketing related to the event.
11. Lacy Park Arboretum Accreditation – this initiative seeks to enhance the recognition and preservation of Lacy Park’s diverse and vibrant tree population by pursuing official arboretum accreditation. This effort underscores the City’s commitment to environmental stewardship and the promotion of local ecology. By obtaining accreditation, Lacy Park would gain formal recognition for its rich biodiversity, reinforcing its role as a vital green space for both education and enjoyment. This initiative aligns with broader conservation goals, ensuring the continued care and appreciation of the park’s natural beauty for generations to come.
Through this process, the City aims to celebrate and promote Lacy Park as a distinguished botanical resource within the community. o Budget Impact - No additional cost – This item is intended to be accomplished by current staff and resources already contained in the Parks and Public Works Department’s budget.
Following today’s selections, the City Council will have one (1) additional opportunity to consider the selections when the budget proposals are presented in April before they are formally included in the budget for adoption.
FISCAL IMPACT & PROCUREMENT REVIEW
This report possesses no fiscal impact and requires no procurement review.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends that the City Council engage in a discussion and give direction on which priority initiatives they would like staff to incorporate into the City’s Fiscal Year 2025-26 work plan and budget.
ATTACHMENTS
1. FY 2025-26 Budget Calendar
2. FY 2025-26 Priority Initiative Feedback – Community Survey Results