A G E N D A
SPECIAL MEETING OF THE CITY COUNCIL
Wednesday, May 15, 2024 ~ 5:30 PM
City Council Chambers
211 Eighth Street
Seal Beach, California
SCHELLY SUSTARSIC
MAYOR
Fourth District
LISA LANDAU
MAYOR PRO TEM
Third District
JOE KALMICK
COUNCIL MEMBER
First District
THOMAS MOORE
COUNCIL MEMBER
Second District
NATHAN STEELE
COUNCIL MEMBER
Fifth District
This Agenda contains a brief general description of each item to be considered. No action or discussion shall be taken on any item not appearing on the agenda, except as otherwise provided by law. Supporting documents, including agenda staff reports, and any public writings distributed by the City to at least a majority of the Council Members regarding any item on this agenda are available for review on the City’s website at www.sealbeachca.gov.
City Council meetings are broadcast live on Seal Beach TV3 and on the City's website www.sealbeachca.gov). Check the SBTV3 schedule for rebroadcast of — meetings are available on- demand on the website (starting 2012).meeting In compliance with the Americans with Disabilities Act of 1990, if you require disability - related modification or accommodation to attend or participate in this meeting, including auxiliary aids or services, please call the City Clerk' s office at (562) 431 -2527 at least 48 hours prior to the meeting.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
COUNCIL ROLL CALL
ORAL COMMUNICATIONS
At this time members of the public may address the Council regarding items on the agenda. Pursuant to the Brown Act, the Council cannot discuss or take action on any items not on the agenda unless authorized by law. Matters not on the agenda may, at the Council' s discretion, be referred to the City Manager and placed on a future agenda.
Those members of the public wishing to speak are asked to come forward to the microphone and state their name for the record. All speakers will be limited to a period of five (5) minutes. Speakers must address their comments only to the Mayor and entire City Council, and not to any individual, member of the staff or audience. Any documents for review should be presented to the City Clerk for distribution.
Speaker cards will be available at the Clerk’s desk for those wishing to sign up to address the Council, although the submission of a speaker card is not required in order to address the Council.
Supplemental Communications from Council Member Moore
WORKSHOP
A. Continuation of Proposed Fiscal Year 2024-2025 Operating Budget B. Proposed Fiscal Year 2024-2025 Capital Improvement Program Budget C. 5 Year Financial Forecast
ADJOURNMENT
Adjourn the City Council to Tuesday, May 28, 2024 at 5:30 p.m. to meet in closed session, if deemed necessary.
NOTE:
City Hall will be closed on Monday, May 27, 2024 in observance of Memorial Day.
Copies of the Proposed Budget for Fiscal Year 2024-2025 are available for public review in the City Clerk’s Office and on the City’s website: www.sealbeachca.gov. 1 Budget 2024/2025 Questions:
REVENUE
1) On page 9, the strategic business plan and fee schedule are mentioned, but they are not in the budget provided to council.
The fee schedule will be included in the updated proposed budget. The fee resolution that was adopted in 2023 authorizes an annual inflationary adjustment to be applied in between comprehensive studies. This year the CPI adjustment that will be included is 3.48%. Only minor adjustments have been made and will be brought forth at the June 10th Council meeting.
Due to the current proposed deficit and anticipated Council discussion, the strategic business plan (5-Year Forecast) cannot be completed. The draft 5-year forecast will be presented at the May 15th budget workshop with the current assumptions, and will be updated upon the conclusion of the budget workshops. 2) On the summary of projected fund balances:
a. Column 4 has -2,674,047 for projected FY 2023/2024 net income for the General Fund; what are these projected expenditures beyond what was budgeted?
The amount includes Capital Improvement Projects. The Summary of Projected Fund Balances is an estimated fund balance report. The $2.6 million is CIPs that are funded through fund balance. It is not a balance sheet report. Please see page 35.
Of the $56.9 million of Amended FY 2023-24 Budget, $46.5 million is “estimated” to be spent. That includes the General Fund portion of the CIPs ($10.3 transfer out - CIP on page 34). The CIP program includes re-appropriation of all encumbrances carried forward from previous years fund balance and is not a part of operating revenues.
b. For Citywide Grants, the amount $1,907,860 is projected for this year. Is there a chance these will not come in or are all of these already approved? The Citywide Grants noted are approved and are mostly within Public Works. Grant requests are not included. This fund will be updated through budget adoption. 2 3) On Page 13,
a. Why is Federal Asset Forfeiture – 205 budgeted at 100,000 when only estimated actual is 30,000 for past year?
Asset forfeiture is extremely unpredictable. Fund 205 is a special fund and allocations are used for a specific purpose within the Police Department. b. Can you explain the Community Development Block grant and why it is 233,000 in this budget vs. 352,00 estimated actual for 2023/2024? In 22-23 and 23-24 the program was augmented by remaining CDBG-CV (coronavirus) funding from the County.
4) On page 19, where is the $487,781 being transferred in from? Please see page 32. This page shows transfers to and from specifically for this amount as well as all transfers.
5) On page 20, why is PW Permits and Inspections so low for 2023/2024 and 2024/2025 vs. 2022/2023?
Public Works had previously taken in permit fees via a deposit account. Once a permit is closed, the balance is moved over to revenue. Depending on the duration of a permit, the transfer of deposits to revenues may not be recognized the same year causing fluctuations from one year to another. Public Works is migrating to a fee-based system where day-to-day permit fees are deposited as revenue, minimizing the delay from the previous format.
6) Page 23 – There was a 30.9% increase in water rates for 2024 from the existing increase approved in 2020, yet the budget has the same water revenue figure as 2023 of 6,100,000. Should that be adjusted?
While rates have increased, there has been concerted water conservation efforts and weather changes that result in consumption decreases. The budget reflects a more conservative projection of water sales.
APPROPRIATIONS
1) Page 55 – Why is workers compensation jump from 670K in 2022-2023 to 1,150,000 for this budget?
3 Workers’ compensation represents the premium costs from CJPIA the City must pay. It was lower in the previous year due to premiums being lower. Additionally, the City received retro reimbursements from historical claims. This amount can fluctuate from year-to-year and also from several years prior depending on the claim, and potential adjustments are not included as they are unknown. 2) Page 56 – Could we get a break down of 101-110-0020-51280 Contract Professional? Contract Professional for Information Technology has been moved to NonDepartmental and the response is attached. 3) Page 81 – Could we see a breakdown of Contract Professional 51280? 4) Page 84 – Information System – XXXX – 1,165,113 – more details? a. Page 89 – would like to see more details on 101-150-2020-51250 and 101- 150-2023-51250
Information Technology Citywide has been moved to one central location in NonDepartmental in anticipation of the Citywide IT Master Plan. Each Department is now included for transparency. Attached is a listing of all contracts within this new Program. The Account codes will be finalized through budget adoption. 5) Page 126
a. Personnel Services are 501K and OCFA costs are 7,048,070. Is the 501K the retirement payments from when we had a fire department? Will this go back down after our one-time payment on this of $250K?
Yes, this is for the closed fire fund with CalPERS. This amount includes the $45,100 savings from the additional discretionary payment of $250,000. The savings will be realized yearly for the remaining life of the fund or until paid.
ACFR Audit
State Controller Report- City Annual
State Controller Report - Parking Finance Authority
HDL - Transaction Use Tax
Cal Municpal Statistics for ACFR
GASB 68 Pension Reporting
BNY - CFD/Inv Report
PFM - Inv. Adv.
CalPERS GASB valuation
HDL Sales Tax
HDL Property Tax
HDL Business License
Fee Study
Municast/Reporting
4 6) Page 136
a. 2022/2023 Actual was $249K and 2024/2025 is $422K for salaries. Will these increases continue at this pace?
The increase is primarily due to the additional planning position approved by Council last year, and the conversion of an executive assistant position to a management analyst.
7) Page 141
a. What makes up Contract Professional 217-300-0331-51280 This was to fund the contract with Michael Baker for the local coastal program. It is matched with 100% grant funding from the Coastal Commission. However, the Department of Finance just froze the grant program, so it is unclear how or if the City will move forward at this time.
8) Page 157
a. Could we see a breakdown of how much each consultant costs for 101-500- 0049-52180
Landscape Contract Professional budget includes the following:
• Landscape & Tree Maintenance $375,500
• Pest Control $40,000
• Field/Court/Park Lighting & Electrical $30,000
• Tree Removals $25,000
9) Page 177
a. Why did electricity go from 628K in 2023 to 901K in this upcoming budget? Are there more details here where we could negotiate better terms with SCE? Electricity expenditure shows a consistent increase in electricity cost year-overyear. SCE electricity costs are based on CPUC General Rate Case approvals that are non-negotiable.
CAPITAL IMPROVEMENT
1) Page 209 – Lifeguard building – 3,887,639 in budget, but thought it was much higher when discussed at strategic planning meeting
5 Council requests included $800,000 for 8th and 10th street parking and ADA compliance, where $286,312 for Repaving of the 8th/10th Parking lots with ADA upgrades from the remaining Revitalization, with the remaining portion of $513,688 from the Pool, BG0904. Additionally, $200,000 for McGaugh pool gas line. 2) Page 211 – Tennis Center Improvement project- isn’t this included in the current renovation paid for by the ARPA funding?
This is the amount remaining for residual payments. Any funds left after final completion will be returned to the funding source.
3) Page 212 – What are the details for this? The $1,815 is the remaining balance of implementation of the Animal control program. This is an estimated amount for any remaining residual payments.
4) Page 213 – Is there a schedule for the year for these projects we could review? Please see below for the budgeted schedule. Projects will be brought back to Council upon updates.
Account Number Account Name Budget
BG2401ex101-CalPERS CalPERS ADP 250000
BG2401ex101-LG FP Lifeguard Fiber/Phone Connectivity 400000 BG2401ex101-LG Sub Lifeguard Substation Repairs 100000
BG2401ex101-WEPS West End Pump Station 700000
BG2401ex101-Fleet Fleet Management 350000
BG2401ex101-OCTA OCTA Grant 150000
BG2401ex101-Assmnt Operational Assessment 100000
BG2401ex101-Grant Grant Writing 150000
BG2401ex101-Polling Polling 50000
BG2401ex101-IT Mstr Citywide IT Master Plan Review 75000 BG2401ex101-License License Plate Reader System Upgrade 325000 BG2401ex101-Gas/Use Gas Tax & Transaction Use Tax Measure 230000 BG2401ex101-Pkg Lots (BP2402ex-10) Repave 8th/10th Parking Lots w/ ADA Upgrades 236312 BG2405ex-1 Gas Line McGaugh Pool 200000
City of Seal Beach
Proposed Budget FY2024-25
Non-Departmental - Information Systems
101-150-XXXX-51250
Department Vendor Name Description
Finance Tyler Financial software
PW Dossier (AMCS) Fleet maintenance software
Beehive Permit management software
Bluebeam Construction collaboration software
Mitchell1 ProDemand Automotive repair software
MyCivic (Tyler Technologies) Civic engagement application Quickbase Resource management software
PlanetBids Procurement and electronic bidding system
PD Everbridge Nixle Emergency & Community notification platform Axon Taser and Body Worn Camera Contract Axon Taser and Body Worn Camera Datapilot Forensic tools software renewal
CLEAR - Thomson Rueters Investigation software
FLOCK Safety LPR lease and data management
Copware Digital legal sourcebook platform
Brazos Handheld ticketing device licenses
Synoptek - PD Website Website maintenance
Versatile Information Products PUMA data management
Vigilant Solutions Annual ESA and LEARN data subscription - LPRS Net Motion, Net Cloud VPN connectivity for MDC's, Remote modem manag.
Portable Computer Systems/ROUTE 1 Server management - parking Youtube TV Streaming digital television
City Clerk Complete Paperless Solutions LLC (Laserfische) City Clerk's Records management system NextRequest Public Records Management Software
Netfile Electronic tax-filing service
PrimeGov-Granicus Council agenda workflow
CD Canva Online graffic design tool
Abbott System Building permits software
Rec Canva Online graffic design tool
Rec Trac-Vermont Systems Recreation software and app
Team Sideline Adult sports scheduling and standings
Reach Media Display System
Simple Booklet Rec Brochure Booklet
Network Solutions Tennis Center Website
Vendor-TBD Digital pass readers for tennis center/pool
CM Neogov Recruitments & Onboarding Software
City-Wide Canva Online graphic design tool
Adobe Acrobat Pro PDF file reader and editor
Adobe Photoshop Licensing
Synoptek-Datto Datto on prem & cloud Backup
Synoptek-Office 365 Office 365 monthly subscriptions
Synoptek-Azure P1 for MFA Azure Active Directory P1 for MFA (part of O365 subscription) Synoptek-Windows Server 2019 Windows Server 2019 licenses for 2 servers Synoptek-Vmware Renewal VMWare Renewal VS5-ES-STD-AK2-UG-C VS5-STD-AK2-P-SSS-C GoTo Citiwide Phone System (VOIP) monthly costs
Zoom Webinar and 10 Licenses
Time Warner Cable Internet/TV Service
Verizon Wireless CellPhone
Frontier Communications Landlines
Synoptek-End User Testing and Training End-user testing and training Synoptek Monthly Services Synoptek Services
Synoptek-Domain name & hosting Domain Name Registrations & Hosting Synoptek-Website Hosting Website maintenance for Sealbeachca.gov IT Equipment IT Equipment and peripherals
UPS Replacements at PD UPS Replacements at PD
HP Hosts with Dell Replacement Replace two HP hosts with Dell 2 Dell Hosts (replacing 2 HJP Hosts) 2 Dell Hosts (replacing 2 HJP Hosts) Synoptek-Warranty Renewals Fortinet Switch/FirewallWifi warranties Synoptek-Warranty Renewals Nimble-San Storage
Synoptek-Warranty Renewals Server warranties 2HP DL380 Servers Dell Equal Logic Dell Equal Logic (Storage Area Network SAN) Dell R340 (Scada Server) Dell R340 (Scada Server)
Synoptek-warranty renewals scv3000 should be a Dell Compellent MS Watchtower CAD Dispatch Software
Hot Schedules Employee scheduling app
Target Solutions Training software for distant learning 1 Annual Valuation Report Update - 6.30.22
Preliminary Update – 6.30.23
City of Seal Beach
May 15, 2024
Kerry Worgan FSA, FCIA
Supervising Pension Actuary, CalPERS
2 Review of Valuation Report and Actuarial Office (ACTO) Update Funded Status on the Valuation Date
• Accrued Liability (AL) – current value of accrued benefits • Market Value of Assets (MVA)– current value of plan assets • Funded Ratio – MVA divided by AL
3 Review of Valuation Report and Actuarial Office (ACTO) Update Required Contributions for Fiscal Year
• Normal Cost – Cost of service earned in the coming year – Provided as dollar amount and Level percent of pay
– Fluctuates due to assumption changes and changes in
aggregate entry age of active members
• Payment on Amortization Bases
– Unfunded Liability = Accrued Liability (AL) – Assets (MVA) – Pay down Unfunded Liability to get back to 100% funded 4 Review of Valuation Report and Actuarial Office (ACTO) Update Miscellaneous Classic Plan (RP 368)
Plan's Funded Status Actual Actual Actual Preliminary
June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 Accrued Liability (AL) $ 50,298,164 $ 52,417,209 $ 53,958,604 $ 55,423,183 Market Value of Assets (MVA) $ 34,740,880 $ 40,825,463 $ 36,184,184 $ 36,564,728 Unfunded Accrued Liability (UAL) $ 15,557,284 $ 11,591,746 $ 17,774,420 $ 18,858,455 Funded Ratio - MVA/AL 69.1% 77.9% 67.1% 66.0%
Investment Return 4.7% 21.3% -6.1% 5.8%
Discount Rate 7.0% 6.8% 6.8% 6.8%
Inflation 0.7% 5.4% 9.1% 3.0%
Required Contributions Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2023-24 2024-25 2025-26
Base Total Normal Cost 17.24% 18.76% 18.80% 18.87%
Surcharge for Class 1 Benefit
a) FAC 1 0.55% 0.63% 0.64% 0.64%
b) PRSA 0.74% 0.79% 0.80% 0.80%
Plan's Total Normal Cost 18.53% 20.18% 20.24% 20.31%
Less Employee Pooled Rate 6.92% 6.92% 6.93% 6.93%
Employer Normal Cost Rate 11.61% 13.26% 13.31% 13.38%
UAL Payment $ 1,231,492 $ 1,196,039 $ 1,409,217 $ 1,604,499 Discount Rate 7.0% 6.8% 6.8% 6.8%
5 Review of Valuation Report and Actuarial Office (ACTO) Update Miscellaneous PEPRA Plan (RP 26294)
Plan's Funded Status Actual Actual Actual Preliminary
June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 Accrued Liability (AL) $ 902,162 $ 1,241,454 $ 1,649,618 $ 2,107,623 Market Value of Assets (MVA) $ 813,735 $ 1,290,730 $ 1,430,659 $ 1,805,421 Unfunded Accrued Liability (UAL) $ 88,427 $ (49,276) $ 218,959 $ 302,202 Funded Ratio - MVA/AL 90.2% 104.0% 86.7% 85.7%
Investment Return 4.7% 21.3% -6.1% 5.8%
Discount Rate 7.0% 6.8% 6.8% 6.8%
Inflation 0.7% 5.4% 9.1% 3.0%
Required Contributions Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2023-24 2024-25 2025-26
Base Total Normal Cost 14.22% 15.43% 15.62% 15.71%
Surcharge for Class 1 Benefit
a) PRSA 0.79% 0.82% 0.81% 0.81%
Plan's Total Normal Cost 15.01% 16.25% 16.43% 16.52%
Less Employee Pooled Rate 7.25% 8.25% 8.25% 8.25%
Employer Normal Cost Rate 7.76% 8.00% 8.18% 8.27%
UAL Payment $ 6,957 $ - $ 7,730 $ 16,710
Discount Rate 7.0% 6.8% 6.8% 6.8%
6 Review of Valuation Report and Actuarial Office (ACTO) Update Safety Classic Plan (RP 4460)
Plan's Funded Status Actual Actual Actual Preliminary
June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 Accrued Liability (AL) $ 87,289,227 $ 92,322,148 $ 96,258,892 $ 100,204,089 Market Value of Assets (MVA) $ 60,381,462 $ 72,112,105 $ 64,786,429 $ 66,906,571 Unfunded Accrued Liability (UAL) $ 26,907,765 $ 20,210,043 $ 31,472,463 $ 33,297,518 Funded Ratio - MVA/AL 69.2% 78.1% 67.3% 66.8%
Investment Return 4.7% 21.3% -6.1% 5.8%
Discount Rate 7.0% 6.8% 6.8% 6.8%
Inflation 0.7% 5.4% 9.1% 3.0%
Required Contributions Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2023-24 2024-25 2025-26
Base Total Normal Cost 31.46% 34.64% 34.85% 34.91%
Surcharge for Class 1 Benefit
a) PRSA 1.28% 1.46% 1.46% 1.47%
1.89% 1.98% 1.98% 1.97%
Plan's Total Normal Cost 34.63% 38.08% 38.29% 38.35%
Less Employee Pooled Rate 8.99% 8.99% 8.99% 8.99%
Employer Normal Cost Rate 25.64% 29.09% 29.30% 29.36%
UAL Payment $ 2,129,133 $ 2,100,852 $ 2,490,181 $ 2,821,876 Discount Rate 7.0% 6.8% 6.8% 6.8%
7 Review of Valuation Report and Actuarial Office (ACTO) Update Safety Police PEPRA Plan (RP 25313)
Plan's Funded Status Actual Actual Actual Preliminary
June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 Accrued Liability (AL) $ 546,307 $ 875,354 $ 1,289,552 $ 1,803,065 Market Value of Assets (MVA) $ 509,859 $ 936,262 $ 1,129,956 $ 1,570,945 Unfunded Accrued Liability (UAL) $ 36,448 $ (60,908) $ 159,596 $ 232,120 Funded Ratio - MVA/AL 93.3% 107.0% 87.6% 87.1%
Investment Return 4.7% 21.3% -6.1% 5.8%
Discount Rate 7.0% 6.8% 6.8% 6.8%
Inflation 0.7% 5.4% 9.1% 3.0%
Required Contributions Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2023-24 2024-25 2025-26
Base Total Normal Cost 25.78% 27.29% 27.51% 27.75%
Surcharge for Class 1 Benefit
a) PRSA 1.63% 1.71% 1.71% 1.72%
Plan's Total Normal Cost 27.41% 29.00% 29.22% 29.47%
Less Employee Pooled Rate 13.75% 14.50% 14.50% 14.50%
Employer Normal Cost Rate 13.66% 14.50% 14.72% 14.97%
UAL Payment $ 3,275 $ - $ 6,044 $ 12,814
Discount Rate 7.0% 6.8% 6.8% 6.8%
8 Review of Valuation Report and Actuarial Office (ACTO) Update Other Safety PEPRA Plan (RP 25312)
Plan's Funded Status Actual Actual Actual Preliminary
June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 Accrued Liability (AL) $ 87,462 $ 126,628 $ 160,890 $ 197,366 Market Value of Assets (MVA) $ 79,807 $ 133,414 $ 142,071 $ 172,580 Unfunded Accrued Liability (UAL) $ 7,655 $ (6,786) $ 18,819 $ 24,786 Funded Ratio - MVA/AL 91.2% 105.4% 88.3% 87.4%
Investment Return 4.7% 21.3% -6.1% 5.8%
Discount Rate 7.0% 6.8% 6.8% 6.8%
Inflation 0.7% 5.4% 9.1% 3.0%
Required Contributions Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2023-24 2024-25 2025-26
Base Total Normal Cost 25.78% 27.29% 27.51% 27.75%
Surcharge for Class 1 Benefit
a) PRSA 1.63% 1.71% 1.71% 1.72%
Plan's Total Normal Cost 27.41% 29.00% 29.22% 29.47%
Less Employee Pooled Rate 13.75% 14.50% 14.50% 14.50%
Employer Normal Cost Rate 13.66% 14.50% 14.72% 14.97%
UAL Payment $ 1,504 $ - $ 670 $ 1,390
Discount Rate 7.0% 6.8% 6.8% 6.8%
9 Review of Valuation Report and Actuarial Office (ACTO) Update Safety Inactive Plan (RP 369)
Plan's Funded Status Actual Actual Actual Preliminary
June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 Accrued Liability (AL) $ 8,715,372 $ 8,539,530 $ 8,473,468 $ 8,363,770 Market Value of Assets (MVA) $ 5,321,466 $ 5,823,331 $ 5,035,016 $ 4,960,106 Unfunded Accrued Liability (UAL) $ 3,393,906 $ 2,716,199 $ 3,438,452 $ 3,403,664 Funded Ratio - MVA/AL 61.1% 68.2% 59.4% 59.3%
Investment Return 4.7% 21.3% -6.1% 5.8%
Discount Rate 7.0% 6.8% 6.8% 6.8%
Inflation 0.7% 5.4% 9.1% 3.0%
Required Contributions Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2023-24 2024-25 2025-26
Base Total Normal Cost 0.00% 0.00% 0.00% 0.00%
Surcharge for Class 1 Benefit
a) none 0.00% 0.00% 0.00% 0.00%
Plan's Total Normal Cost 0.00% 0.00% 0.00% 0.00%
Less Employee Pooled Rate 0.00% 0.00% 0.00% 0.00%
Employer Normal Cost Rate 0.00% 0.00% 0.00% 0.00%
UAL Payment $ 398,468 $ 404,972 $ 546,250 $ 579,201
UAL Period 11 yrs 7 yrs 7 yrs 6 yrs
Average Age 75 76 77 78
Discount Rate 7.0% 6.8% 6.8% 6.8%
Revised UAL Payment $ 510,150 $ 532,162
10 Review of Valuation Report and Actuarial Office (ACTO) Update Accelerated Funding
• Multiple ways to do it
– Fresh start over a reduced period
– Additional Discretionary Payment (ADP) on an ad hoc basis – Pension Obligation Bond (POB) to pay off UAL
– Section 115 Trust
• Ad hoc basis – Employer Option
– Short-term Savings : Apply to Shortest Base
– Long-term Savings : Apply to Longest Base
– Flexible
11 Review of Valuation Report and Actuarial Office (ACTO) Update Accelerated Funding
• Fresh Start
– Must pay off bases faster than existing schedule
– Creates new higher Minimum UAL payment
– Significant long-term savings
– Inflexible
12 Review of Valuation Report and Actuarial Office (ACTO) Update Accelerated Funding
• Discuss with your CalPERS Actuary
– they will explain options and show financial impacts
• Help us Understand your Goals
• CalPERS will prepare paperwork and payment instructions – need Payment Amount & Payment Date
• New Amortization schedules show up in next valuation
report
• Managing Employer Contribution (MEC) Tool available to agencies to assist with financial analysis
13 Pension Outlook –
Projecting the Path Forward
14 Review of Valuation Report and Actuarial Office (ACTO) Update Pension Outlook – Scenarios
15 Review of Valuation Report and Actuarial Office (ACTO) Update Path Forward – Miscellaneous Plans
16 Review of Valuation Report and Actuarial Office (ACTO) Update Path Forward – Safety Plans
17 Review of Valuation Report and Actuarial Office (ACTO) Update Plan Membership
Pension Plan Actives Transferred Separated Retirees Total Miscellaneous Classic Plan (RP 368) 28 33 26 157 244
Miscellaneous PEPRA Plan (RP 26294) 31 12 4 1 48
Total Miscelllaneous 59 45 30 158 292
Safety Classic Plan (RP 4460) 29 4 5 98 136
Safety Police PEPRA Plan (RP 25313) 12 0 2 0 14
Other Safety PEPRA Plan (RP 25312) 2 0 0 0 2
Safety Classic Plan (RP 369) 0 0 0 37 37
Total Safety 43 4 7 135 189
Membership Counts at June 30, 2023
18 Review of Valuation Report and Actuarial Office (ACTO) Update Hypothetical Plan Termination Costs
Plan Accrued Unfunded Plan Cost***
Pension Plan Assets Liability* Liability next 20 years
Miscellaneous Classic Plan (RP 368) $ 36.56 $ 76.22 $ 39.66 Miscellaneous PEPRA Plan (RP 26294) $ 1.81 $ 2.57 $ 0.77 Total Miscelllaneous $ 38.37 $ 78.80 $ 40.43 $ 42.89
Safety Classic Plan (RP 4460) $ 66.91 $ 144.06 $ 77.15
Safety Police PEPRA Plan (RP 25313) $ 1.57 $ 2.38 $ 0.81 Other Safety PEPRA Plan (RP 25312) $ 0.17 $ 0.23 $ 0.06 Safety Classic Plan (RP 369) $ 4.96 $ 10.80 $ 5.84
Total Safety $ 73.61 $ 157.47 $ 83.86 $ 89.10
*estimate based on 20 year bond yields at 6.30.23 of 4.06% **Current 20 year bond yield is 4.70% (5.7.24)
*** Total projected employer costs from Pension Outlook for next 20 years Estimated Plan Termination Costs at June 30, 2023 ($M)
19 Appendix –
Life Expectancy Graphs
20 Review of Valuation Report and Actuarial Office (ACTO) Update Life Expectancy by Age – Females
21 Review of Valuation Report and Actuarial Office (ACTO) Update Life Expectancy by Age – Males
22 Review of Valuation Report and Actuarial Office (ACTO) Update Questions?
Department Mission Statement
FISCAL YEAR 2024-25
PROPOSED BUDGET
The Community Development
Department performs services
intended to improve the built
environment and the quality of
life for current and future
residents, businesses, and
visitors
Core Services
• Development Planning and Entitlement
• Building & Safety Permitting and Inspections
• Code Enforcement
• CDBG Projects (Bathroom Rehabilitations)
FISCAL YEAR 2024-25
PROPOSED BUDGET
Accomplishments
FISCAL YEAR 2024-25
PROPOSED BUDGET
• 1,670 building permits; 39 in-concepts and
entitlements; 150 code cases
• Forward progress on large projects: Housing
Element, Zoning Code Update & EIR, new software
implementations (EPL, SolarApp+, ESRI, Bluebeam)
• Obtained CDBG grant funding for North Seal Beach
Community Center
• Short-term rental program implementation
• Closed out long-term document archive project
• Variety of mandate-related activities
FY 2024-25 Proposed Budget Summary
• FY 2024-25 All Funds:
› $2.86M
• FY 2024-25 FTEs
› Total: 9
FISCAL YEAR
PROPOSED BUDGET
FY 2024-25 EXPENDITURES BY FUND
General Fund -
101
Special Projects -
103
Community
Development
Block Grant - 215
Citywide Grants -
217
• Salaries & Benefits 36%
• Not inclusive of contracted staff – Building
Official, Building Permit Technician,
Building Inspector
• Maintenance & Operations
• Contract staff (no redundancies)
• CDBG Grant Admin Match
• Advanced planning support
FISCAL YEAR 2024-25
PROPOSED BUDGET
Personnel
Services, $1M,
36%
Maintenance
and Operations,
$1.8M,
0.64314053562
492
FY 2024-25 EXPENDITURES
Amended Adopted
Budget Budget
FY 2023-24 FY 2024-25
Personnel Services $1.2M $1.M
Maintenance and Operations $2.M $1.8M
TOTAL $3.2M $2.8M
FY 2024-25 Proposed Budget Summary
Budget Balancing Strategies - Revenues
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Worked with County of Orange for grant
administrative cost support
• Annual fee update
• Use of fee-funded resources whenever possible
• General Plan updates
• Technology implementation
Budget Balancing Strategies - Expenditures
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Reduction in training, membership, and supplies
• Reduction in contract costs
Staffing Levels/Service Delivery
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Multiple new State mandates – and sometimes
court cases - each year continue to drive staff
workloads in addition to day-to-day services
• Substantial uptick this last year in Code
Enforcement cases – both in complexity and
volume
• Consistently seeking to work smarter through
systems development, manual creation, better
record keeping, project management tools, AI
Challenges & Opportunities
FISCAL YEAR 2024-25
PROPOSED BUDGET
• State-driven processes with high levels of
uncertainty
• Multiple advance planning mandates and
aging planning documents
• Volatile real estate investment market
~
• Capable and forward-thinking
Staff
• Implementation of new tools
Community Support
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Information center for property and development
• Quality of life efforts through Code Enforcement
• 60% of public records requests
Questions?
FISCAL YEAR 2024-25
PROPOSED BUDGET
1 FISCAL YEAR
2024-25
Proposed Budget
Marine Safety
Mission Statement
FISCAL YEAR 2024-25
PROPOSED BUDGET
The Marine Safety Department provides the highest quality safety services in the coastal and aquatic environment for the public through prevention, education, rescue, medical aid, outreach, beach management, and enforcement.
Core Services
• Safety of the public while visiting the beach
• Manage McGaugh Pool programming
• Teach swim lessons
• Lifeguard training academy
• Citywide AED program
• Public education- Drowning Prevention
• Junior Lifeguard Program
FISCAL YEAR 2024-25
PROPOSED BUDGET
Accomplishments
FISCAL YEAR 2024-25
PROPOSED BUDGET
FY 2024-25 Proposed Budget Summary
• FY 2024-25 All Funds:
› $2.2M
• FY 2024-25 FTEs
› Full-time: 4
› Part-time: 70
› Part-time FTE: 18.3
FISCAL YEAR
PROPOSED BUDGET
FY 2024-25 EXPENDITURES BY FUND
General Fund - 101
Special Projects - 103
Tidelands - 106
FY Proposed Budget Summary
• Salaries & Benefits 88%
• Maintenance & Operations
• Reduced all accounts – $94,000
FISCAL YEAR 2024-25
PROPOSED BUDGET
Personnel Services,
$1.97 M, 88%
Maintenance
and
Operations,
.28 M, 12%
FY 2024-25 EXPENDITURES
Amended Adopted
Budget Budget
FY 2022-23 FY 2023-24
Personnel Services $1.83M $1.97 M
Maintenance and Operations .30M .28 M
TOTAL $2.15M $2.24M
Budget Balancing Strategies - Expenditures
FISCAL YEAR 2024-25
PROPOSED BUDGET
Budget Reductions
• Training and Meetings Account
• Only required trainings
• Eliminated Coast Guard license training
• Eliminated Drone Operator training
• Eliminated swift water training class
• Special Departmental Account
• Reduction in our Rapid SCUBA rescue program
• Marine Maintenance and Fuel Account
• Deferred purchase of RWC trailer
• Junior Lifeguard Program Account
• Deferred equipment purchase
• Office Supplies Account
• Eliminated printing of tide books
• Department award plaques
Staffing Levels/Service Delivery
FISCAL YEAR 2024-25
PROPOSED BUDGET
- Staffing levels remain unchanged, as there are no personnel reductions for the Marine Safety staff in this proposed budget. - We analyzed eliminating staff and positions
- Each summer position costs the City $16,000
- Each position removed lowers our ability to provide
adequate public safety and protecting the health and
safety of the public.
- Staffing only 1 Lifeguard at the McGaugh Pool year-round would save $45,000. This would result in significant issues, including service reductions in our aquatics program.
Challenges
• Equipment Deferrals
• Lifeguard trucks are estimated to last 5 years in
the corrosive saltwater and sand environment.
We have not received a new truck in three years.
• The Junior Lifeguard Utility Task Vehicle (UTV) is
10 years old and beyond its useful life and needs
to be replaced. $38,000 replacement cost.
• AED’s are estimated to last 10 years and the
City’s AED inventory is nearly at that point. Our
current AED inventory is 12 years old and out of
warranty. In July of 2025 we will no longer be
compliant. $40,000 cost to replace the Citywide
inventory of AED’s.
FISCAL YEAR 2024-25
PROPOSED BUDGET
Questions?
FISCAL YEAR 2024-25
PROPOSED BUDGET
FISCAL YEAR 2024-25
PROPOSED BUDGET
Department Mission Statement
Through our leadership and creativity, the Seal Beach
Community Services Department makes a positive difference in our community by encouraging resident involvement and
strengthening community resiliency. We are inclusive and accessible; we offer diversity of experience and value
environmental stewardship and personal development; we
provide opportunities for healthy lifestyles and we offer the opportunity for lifelong learning through fun, play, and celebration. We create community by building brighter futures! Core Services
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Provide free and low-cost recreation opportunities
• Operation of Tennis and Pickleball Center
• Support community events
• Film and special event permitting
• Facility rentals
• Senior transportation
• Community garden
Accomplishments
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Maintained SBTPC Operations through construction
• Introduced online (and now mobile) registration to reserve courts, book classes, and manage memberships
• Increased partnerships for Senior Programs including CalFresh, Optum Care
• New partnership with OC Symphony – free summer concert • Worked closely with the Seal Beach Pickleball Association to improve facility conditions and programming opportunities • Successful reroute of the annual Run Seal Beach - reducing traffic and staffing impacts
• Coordinated the Seal Beach Classic Car show to host over 650 classic cars (largest car count)
• Implemented new sports league software
• Revised concept for the annual summer kick off event
Recreation Stats
• 1600 registered users of senior transportation
• 465 memberships at SBTPC (75%PB, 25%Tennis)
• 750 leisure classes
• 850 surf lessons
• 650 room rentals
• 35 large-scale special events
• 4 garden events
FISCAL YEAR 2024-25
PROPOSED BUDGET
FY 2024-25 Proposed Budget Summary
• FY 2024-25 All
Funds:
› $1.4M
• FY 2024-25 FTEs
› FT: 5
› FTE: 4.2
FISCAL YEAR
PROPOSED BUDGET
FY 2024-25 EXPENDITURES BY FUND
General Fund -
101
Special Projects
- 103
Tidelands - 106
FY 2024-25 Proposed Budget Summary
• Salaries & Benefits 50%
• Maintenance & Operations
• Instructor reimbursements
• Supplies and equipment
• SBTPC
FISCAL YEAR 2024-25
PROPOSED BUDGET
Personnel Services,
$.7M, 50%
Maintenance
and
Operations,
$.7M,
0.49679309224
4065
FY 2024-25 EXPENDITURES
Amended Adopted
Budget Budget
FY 2023-24 FY 2024-25
Personnel Services $.7M $.7M
Maintenance and Operations $.7M $.7M
TOTAL $1.4M $1.4M
Budget Balancing Strategies – Revenues
FISCAL YEAR 2024-25
PROPOSED BUDGET
• CPI inflationary fee adjustment
• Potential modifications to film permit fees and
SBTPC memberships
• Modifications to SBTPC pro shop operations
Budget Balancing Strategies - Expenditures
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Deferred hiring, 1 FTE - Recreation Specialist
• Revisions to SBTPC operations
• Funding limitations in dial-a-ride program
• Events budgets held constant (reduction in supplies)
Staffing Levels/Service Delivery
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Continue to seek partnerships
• Modify and improve work processes when possible
• Leverage part-time staffing and technology
• Try new things
Challenges & Opportunities
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Rising costs
• Heavy reliance on part-time staff
• Increases in participants
• Renovations to SBTPC and North Seal Beach Center
• New technology tools
Community Support
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Community Services is community support
• Recreation classes
• Sports leagues
• SBTPC
• Meals on Wheels
• Senior transportation
• Special events
• Community events
Questions?
FISCAL YEAR 2024-25
PROPOSED BUDGET
1 FISCAL YEAR
2024-25
Proposed Budget
Public Works
FISCAL YEAR 2024-25
PROPOSED BUDGET
Mission
To provide innovative and
sustainable city improvements
and services through strategic
planning, programming,
budgeting, constructing, and
maintaining the city’s
infrastructure in a cost-effective
way that meets the overall needs
of the community.
Statement
Our Infrastructure
FISCAL YEAR 2024-25
PROPOSED BUDGET
Beach
2 miles, 1 Pier
Streets
41.8 Centerline Miles
Buildings
4 Community Centers, SBTPC,
City Support Facilities, Etc.
Storm Drain
1 Pump Station Serving 11.5
Square Miles
Fleet
90+ Vehicles & Heavy Equipment
Water
2 Reservoirs, 2 Booster Stations, 4 Wells,
73.5 Miles of Pipeline, 5,300+ Services
Parks
19 Parks
Sewer
6 Stations, 34+ Miles of
Pipeline
Sample List of Accomplishments
Routine & Emergency Operations
• Responded to multiple winter storm emergency needs
• Over 220 plan reviews & permits issued
• Over 2,500+ trees trimmed
• Inspected and cleaned over 40,000 LF of sewer pipeline • Successfully complied with regulatory reporting (water, sewer, transportation, etc.) • Enhanced social media presence and public outreach
Projects
• Circuit Micro-Transit Program
• Fleet Management Plan Update
• My Civic Mobile Application
• Land Management Software Migration
• Safety Action Plan (SS4A)
• San Gabriel River Trash Mitigation Funding
• Surfside-Sunset Sand Replenishment
FISCAL YEAR 2024-25
PROPOSED BUDGET
Ongoing Challenges
FISCAL YEAR 2024-25
PROPOSED BUDGET
• Aging infrastructure with increasing material and labor pricing • Water wells, booster stations, Navy reservoir, and sewer stations • Streets, sidewalks, and facilities
• Construction material, labor, fuel, and utilities
• Increase in contract pricing (landscape, tree trimming, janitorial, traffic signal, etc.) • Extreme weather events
• Increase in unfunded mandates and regulatory compliance needs • Lead & Copper Service Inventory
• National Pollutant Discharge Elimination System (NPDES) • Advanced Clean Fleet – ZEV requirement
Budget Balancing Strategies - $1.5M
FISCAL YEAR 2024-25
PROPOSED BUDGET
• 0042 Administration/Engineering: 19%
• Reduction in interagency coordination, ability to seek outside funding sources, training. • 0043 Storm Drain: 36%
• Reduces emergency storm/flooding response, NPDES violation response, SGR Trash Mitigation funding
• 0044 Street: 23%
• Reduces response to trip hazards, affects roadway conditions (PCI), eliminates Main Street power washing contract
• 0049 Landscape/Parks: 29%
• Reduces amenities repairs/replacements, halts beautification efforts, removes portable restrooms at Marina Park, Heather Park, and Edison Park • 0050/0980 Fleet: 24%
• Extends (or defer) vehicle/equipment repair turnaround time, affecting public safety and public service operations. Reduction in fuel budget. No vehicle replacement. • 0052 Building: 3%
• Postpones facility repairs
• 0863 Beach – 23%
• Eliminates porter services at 1st Street restrooms and reduces cleaning schedules to once -a-day, Pier restroom porter services during peak months only, removes sand berm design/coordination, reduces emergency response resources Staffing Levels/Service Delivery
FISCAL YEAR 2024-25
PROPOSED BUDGET
• TEMPORARILY deferring Maintenance Services Supervisor recruitment • TEMPORARILY reduce PT staffing availability
Service impacts:
• Increased workloads
• Decline in service quality
• Longer response times
• Reduced availability
• Delays in essential maintenance and upgrades
• Increase in long-term costs
Rising service expectations amidst lean staffing levels FY 2024-25 Proposed Budget Summary
FISCAL YEAR 2024-25
PROPOSED BUDGET
EXPENDITURES BY FUND
General Fund - 101
Special Projects - 103
Tidelands Beach - 106
SB1 RMRA - 209
Gas Tax - 210
Measure M2 - 211
Citywide Grants - 217
Street Lighting District No. 1
- 280
Capital Improvement
Projects - 301
Personnel Services,
$5.5M,
0.135978669841996
Maintenance
and
Operations,
$15M,
0.369506857
911407
Capital Outlay,
$20.1M, 49%
EXPENDITURES BY TYPE
$40.6 M
FY Proposed Budget Summary
• Salaries & Benefits 14%
• Maintenance & Operations
• Winter Sand Berm
• Landscape & Tree Maintenance
• Janitorial Services/Building Repairs
• Fleet/Equipment Maintenance
• Signing/Striping/Pavement
Maintenance
• Water Sampling/Testing
• Pump Station Maintenance
• Sewer CCTV/Cleaning/FOG
• Traffic Signal Maintenance
FISCAL YEAR 2024-25
PROPOSED BUDGET
Amended Adopted
Budget Budget
FY 2023-24 FY 2024-25
Personnel Services $5.5M $5.5M
Maintenance and Operations $14.7M $15.M
Capital Outlay $27.8M $20.1M
TOTAL $47.9M $40.6M
• FY 2024-25 FTEs = 31.93
› Full-Time = 24
› Part-Time = 6.93
› Temporarily Deferred = 1
FISCAL YEAR 2024-25
PROPOSED BUDGET
Questions?
1 FISCAL YEAR
2024-25
Proposed Budget
Capital Improvement
Program
CIP Funding Sources
2 FISCAL YEAR 2024-25
PROPOSED BUDGET
General Fund Gas Tax/SB1/M2
Allocation based
funding for roadway
improvements
Grants &
Special Projects
Outside grants and
alternative funding
opportunities,
interagency
coordination
Water
Enterprise
Water rate funded
projects
Sewer
Enterprise
Sewer rate funded
projects
Recent & On-Going Construction
• Pier Restroom Restoration
• Concrete Pier Abutment
• Lampson Avenue Bike Lane Gap Closure
• Slurry Seal Program
• Seal Beach Boulevard Arterial Resurfacing
• Seal Beach Boulevard @ North Gate Road
(405 Ramps) Rehabilitation
• Local Paving & Almond Avenue Paving
• West End Pump Station VFD
• Heather Park
• Tennis & Pickleball Center
• 405 Widening (OCTA/Caltrans)
• OC San (3-62 & 3-64 Complete, 3-67 starting soon)
• Beverly Manor (Production) Well Rehabilitation
FISCAL YEAR 2024-25
PROPOSED CIP
General Fund & Related Grants - $13.7M
FISCAL YEAR 2024-25
PROPOSED CIP
4 •West End Pump Station
Storm Drain
• Pier Concrete Abutment
• Pier Restrooms
• 8
th & 10th Street Parking Lot + ADA Ramps
Tidelands
•LGHQ/PD Substation
•Tennis & Pickleball Center
•LGHQ Fiber Connectivity
•ADA Improvements
•North Seal Beach Community Center
•McGaugh Pool Gas Line
Facilities
•Heather Park
• Park Improvement Program
Landscape & Parks
Streets & Transportation - $4.4M
5 FISCAL YEAR 2024-25
PROPOSED CIP
•Annual Slurry Seal Program
•Annual Local Paving
•ADA barrier removals (i.e., assessment, sidewalks, curb ramps) Annual Programs
•Signal and timing upgrades
•Equipment upgrades
•Fiber/communication
Traffic Signals
•Almond Avenue Pavement Rehabilitation
•Seal Beach Boulevard @ North Gate/405 Ramps
•Seal Beach Boulevard Pavement Rehabilitation
•Lampson Bike Lane Gap Closure
•Safety Action Plan
Transportation
Sewer - $2.8M
6 FISCAL YEAR 2024-25
PROPOSED CIP
• Pump Station #35
Pump Stations
• Manhole Rehabilitation
• Mainline Point Repairs
Conveyance
• SCADA Improvement Upgrades
Technology
Water - $644k
FISCAL YEAR 2024-25
PROPOSED CIP
7 •Lampson Well Treatment System
•Beverly Manor Production Well
•Bolsa Chica Well Rehabilitation
Pump Stations & Wells
•LCWA Watermain Lining
•Montecito Waterline Relocation (I-405)
Conveyance
•SCADA Improvement Upgrades
Technology
Future CIPs - FY25/26 to FY28/29
FISCAL YEAR 2024-25
PROPOSED CIP
• 1
st Street Restroom Renovations
• EV Infrastructure Improvements
• City Hall Staircase Improvements
• Council Chambers Improvements
• On-Going ADA Improvements
• On-Going Pavements
Improvements
• PD Building and Parking Lot
Improvements
• Zoeter Field Upgrades
Unfunded CIPs
9 FISCAL YEAR 2024-25
PROPOSED CIP
• Alley Pavement Rehabilitation
• Lifeguard Headquarters/PD
Substation (Partially Funded)
• Sand Replenishment Program
Fund
• Vehicle Replacement Program
• Citywide Storm Drain System
Improvements (Drainage Master
Plan)
• Citywide Facilities Upgrade
(Facilities Master Plan)
• Citywide Parks Upgrade (Parks
Master Plan)
Unfunded CIPs – Water
10 FISCAL YEAR 2024-25
PROPOSED CIP
• Advanced Metering Infrastructure
• Beverly Manor Booster Station
• Bolsa Chica Water Well
Rehabilitation
• Navy Reservoir Rehabilitation
• College Park East/West Water
System Improvements
• Lampson Avenue Transmission
Main
• Lampson Well Treatment System
• Leisure World Well
Reestablishment
• Los Cerritos Wetlands Watermain
Relining
• Other water infrastructure
replacement and compliance
needs
Unfunded CIPs – Sewer
11 FISCAL YEAR 2024-25
PROPOSED CIP
• 1
st Street Pump Station
• 6
th Street Alley Water/Sewer Replacement
• 8
th Street Pump Station
• Adolfo Lopez Pump Station
• Boeing Pump Station
• Pump Station #35 (future phases)
• Seal Way Water/Sewer Upgrade
• Sewer Mainline Improvement Program
• Sunset Aquatic Station
• Other sewer infrastructure replacement
and compliance needs
FISCAL YEAR 2024-25
PROPOSED BUDGET
Questions?
1 FISCAL YEAR
2024-25
Proposed Budget
Five-Year Forecast
FY 2024-25 Five-Year Forecast
FISCAL YEAR 2024-25
PROPOSED BUDGET
2 • FY 2023-24 Projected $1.7M Deficit/FY 2024-25 began with a $6 million deficit. • Historically high inflation rates
• Increases in contract costs and mandates not within the City’s control • Historical service levels
• Extensive review process involving 28 rounds of revenue and expenditure analysis and reductions
• Salary and benefit costs were reduced by $1 million
• Maintenance and operations budgets across the City were reduced by $3 million impacting service response times, upkeep, and quality of life • Revenue projections were analyzed rigorously
• The five-year outlook incorporates balancing measures, unsustainable for the long-term General Fund Reserves
3 FISCAL YEAR 2024-25
PROPOSED BUDGET
• Fiscal Policy Reserve: 20-25% maintained for unforeseen operating and capital needs, economic uncertainties, local disasters, and other financial hardships or downturns in the economy, as well as cash flow requirements. • Economic Contingency Reserve: 10% (3.9%) A disaster/hazard mitigation reserve will be maintained for the purpose of sustaining the General Fund operations in the case of public emergency such as a natural disaster or other unforeseen catastrophic event. Millions
2024-25 2024-25 2025-26 2026-27 2027-28
$0.0
$0.5
$1.0
$1.5
$2.0
-$0.5
-$1.0
Economic Contingency Reserves
Millions
2024-25 2024-25 2025-26 2026-27 2027-28 2028-29
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0 Fiscal Policy Reserves
FISCAL YEAR 2024-25
PROPOSED BUDGET
Revenue Opportunities
4 Estimated New Revenue Opportunities
2025 2026 2027 2028 2029
Sales Tax 1/2 Cent $ 541,820 $ 2,461,662 $ 3,204,143 $ 3,284,247 $ 3,363,068 Main St. Metered Parking $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Head-In Parking vs. Warnings $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Cannabis Tax $ 250,000 $ 600,000 $ 675,000 $ 675,000 Business License $ 150,000 $ 300,000 $ 300,000 $ 300,000 Franchise Fees $ 250,000 $ 500,000 $ 500,000 Parcel Tax $ 600,000 $ 600,000 $ 600,000 Levy for Street Lighting $ 118,512 $ 122,067 $ 125,729 Barrel Tax $ 100,000 $ 100,000 $ 100,000 New Hotel $ 150,000 $ 300,000 $ 856,820 $ 3,176,662 $ 5,487,655 $ 6,046,314 $ 6,278,798 Cost Recovery Schedule
Cost Recovery/Fee Schedule
• When a service/program provides a benefit to specific individuals/groups, it is appropriate for the individual(s) receiving that benefit to pay for the cost of that service. • Full Cost Recovery and Fee Schedule every 3-4 Years
WHEREAS, the City Council desires that annually the City Manager may update the fees, charges, rates, and fines based on the annual percentage change in the all-urban Consumer Price Index for Los AngelesLong Beach-Anaheim, CA (CPI). If the CPI does not change or goes down in a given year, no change shall be made to the fee schedule that year.
• Current fee resolution adopted in 2023 authorizes an annual inflationary adjustment to be applied in between comprehensive studies
• FY 24/25 update represents an interim CPI adjustment year, adjustment for FY 24/25 is 3.48% (annual change in regional CPI)
• Other minor changes are proposed to enhance fee schedule clarity and improve correlation between services provided and costs recovered: Examples include Film Permits Fees and Towed Vehicle Release Fees
• Effective date July 1, 2024
5 FISCAL YEAR 2024-25
PROPOSED BUDGET
6 FISCAL YEAR
2024-25
Proposed Budget
Five-Year Forecast