A G E N D A
SPECIAL MEETING OF THE CITY COUNCIL
Operating Budget, Capital Improvement Program Budget
& 5-Year Financial Forecast Workshop
Tuesday, May 5, 2026 ~ 5:30 PM
City Council Chambers
211 Eighth Street
Seal Beach, California
LISA LANDAU
MAYOR
Third District
BEN WONG
MAYOR PRO TEM
Second District
JOE KALMICK
COUNCIL MEMBER
First District
PATTY SENECAL
COUNCIL MEMBER
Fourth 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 ondemand 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
WORKSHOP
A. Proposed Fiscal Year 2026-2027 Operating Budget, Capital Improvement Program Budget & 5-Year Financial Forecast
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 are 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.
ADJOURNMENT
Adjourn the City Council to Thursday, May 7, 2026 at 5:30 p.m., for the continuation of the Operating Budget, Capital Improvement Program Budget & 5-Year Financial Forecast Workshop.
NOTE: Copies of the Proposed Budget for Fiscal Year 2026-2027 are available for public review in the City Clerk’s Office and on the City’s website: www.sealbeahca.gov.
CITY COUNCIL NORMS:
Adopted on June 12, 2023
• Maintain a citywide perspective, while being mindful of our districts. • Move from I to we, and from campaigning to governing. • Work together as a body, modeling teamwork and civility for our community. • Assume good intent.
• Disagree agreeably and professionally.
• Utilize long range plans to provide big picture context that is realistic and achievable. • Stay focused on the topic at hand. Ensure each member of Council has an opportunity to speak.
• Demonstrate respect, consideration, and courtesy to all. • Share information and avoid surprises.
• Keep confidential things confidential.
• Respect the Council/Manager form of government and the roles of each party. • Communicate concerns about staff to the City Manager; do not criticize staff in public.
CIVILITY PRINCIPLES:
Treat everyone courteously;
Listen to others respectfully;
Exercise self-control;
Give open-minded consideration to all viewpoints;
Focus on the issues and avoid personalizing debate; and, Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions.
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Proposed Operating & Capital
Improvement Budget
Fiscal Year 2026-27
1 Budget Workshop Study Session
• FY 2026-27 Proposed Budget is Balanced
with NO Structural Deficit
• Review Key Revenues and Expenditures
• Five Year Outlook
• Identify Long Term Goals
• CIPs
FISCAL YEAR 2026-27
Proposed Budget
2 City of Seal Beach Budget
City Council
Strategic Goals &
Objectives
Department Goals
& Performance
Measures
Financial Plans Challenges &
Opportunities
The Budget is a Policy Document, a Financial Plan, an
Operations Guide, and Communication Device
3 FISCAL YEAR 2026-27
Proposed Budget
Budget Development
4 FISCAL YEAR 2026-27
Proposed Budget
May May/June March to
April
January
to
February
December
Finance Develops
Salary & Benefit
and Revenue
Estimates; Public
Works Begins
Assessment for
Capital Projects
Budget Kickoff;
Departments
Review Budget
Goals and Priorities,
Prepare Operating
and Capital Budgets
Budget Balancing
and Development
of the Proposed
Budget
CIP STUDY
SESSION
Budget
Workshops with
the City Council
and Community
Budget
Adoption
Proposed Budget – All Funds
FISCAL YEAR 2026-27
Proposed Budget
$106.2 M $131.5 M
$46.3 M
Total Revenues
Includes Special
Funds
Capital Projects
Ongoing All Funds Capital
Improvement Projects
Total Expenditures
Includes Special
Funds and Capital
Improvement Projects
Change is Automatic – Progress is Not
5 Planning for the Future
FISCAL YEAR 2026-27
Proposed Budget
$3.25M $750K
FLEET FUND
Vehicle Replacement
ECONOMIC CONTINGENCY
Buffer Against Economic
Uncertainty/Volatility
PENSION PAYDOWN
Reducing Unfunded
Liabilities
25%
RESERVE TARGET
City Council Policy For
Emergency Preparedness
$12.4 Million
$838K
$250,000 in additional
discretionary payments to
accelerate payoff of unfunded
liabilities, strengthening longterm fiscal stability and investing in our employees’
future benefits
6 Assumptions
Proposed Budget is being prepared with a cautious and strategic approach • Anticipates economic impacts of Middle East
• Meets operation needs
• Ensures public safety and maintains services
• Deliberate and transparent
• Zero based budgeting
Data Sources & Inputs
• HDL revenue forecasts (Sales Tax & Property Tax)
• City property tax & sales tax analysis historical data • Legislative updates
• Local economic conditions & historical trends
• Local economic forecasts
Economic & Risk Assumptions
• Inflation is anticipated to increase
• Interest rates normalize
• Federal policy impacts
• General consumer demand/discretionary spending is decreasing • Construction & capital costs continue to rise
• Rising CalPERS, healthcare, and infrastructure costs considered Methodology Highlights
• Continued conservative forecasting based on historical trends and economic forecasts
• No structural deficit in FY 2026-27; contingency reserves maintained FISCAL YEAR 2026-27
Proposed Budget
✓ Our focus remains on the
future: thoughtfully
pursuing revenue growth
while actively containing
costs.
7 FISCAL YEAR 2026-27
Proposed Budget
City Council Goals
June 8
8 Budget Goals
• Partner Citywide for a Balanced Budget
• Ensure City Maintains Established Service Levels
• Keep Reserves at Policy Level
• Fund Current Positions
• Keep Planning for the Future
FISCAL YEAR 2026-27
Proposed Budget
9 General Fund Revenues
FISCAL YEAR 2026-27
Proposed Budget
Property Tax, $17. M,
34%
Sales and Use Tax,
$14.3 M, 29%
Utility Users Tax, $5.4 M,
11%
Charges for
Services, $3.9 M,
8%
Fines and Forfeitures,
$1.9 M, 4%
Transient Occupancy
Tax, $2. M, 4%
Licenses and
Permits, $1.1 M, 2%
Franchise Fees,
$1.2 M, 2% Other Revenue,
$3.3 M, 6%
Property Tax
Sales Tax
Utility Users Tax
Charges for Services
Fines & Forfeitures
Hotel Tax (TOT)
73.5%
89%
10 General Fund Revenues
FISCAL YEAR 2026-27
Proposed Budget
Amended Estimated Proposed
Revenue Actual Budget Actual Budget
Source FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 $ %
Property Tax Revenue $ 15,808,550 $ 16,327,000 $ 16,327,000 $ 17,029,000 $ 702,000 4.3% Sales and Use Tax $ 12,423,838 $ 14,643,000 $ 14,643,000 $ 14,284,000 $ (359,000) -2.5% Utility Users Tax $ 5,401,062 $ 5,440,000 $ 5,484,112 $ 5,430,000 $ (10,000) -0.2% Transient Occupancy Tax $ 2,052,664 $ 1,890,000 $ 1,900,000 $ 1,998,000 $ 108,000 5.7% Franchise Fees $ 1,161,770 $ 1,160,000 $ 1,216,752 $ 1,152,000 $ (8,000) -0.7% Other Taxes $ 1,100,806 $ 810,000 $ 776,000 $ 776,000 $ (34,000) -4.2% Licenses and Permits $ 1,193,801 $ 861,000 $ 1,068,800 $ 1,106,300 $ 245,300 28.5% Intergovernmental $ 385,073 $ 270,600 $ 257,000 $ 270,000 $ (600) -0.2% Charges for Services $ 3,650,212 $ 3,375,450 $ 3,800,246 $ 3,876,587 $ 501,137 14.8% Fines and Forfeitures $ 1,651,767 $ 1,582,300 $ 1,469,700 $ 1,869,100 $ 286,800 18.1% Use of Money and Property $ 2,755,625 $ 980,100 $ 967,000 $ 1,278,010 $ 297,910 30.4% Other Revenue $ 492,927 $ 147,330 $ 123,306 $ 115,830 $ (31,500) -21.4% Transfers in from Other Funds $ 1,976,980 $ 822,000 $ 822,000 $ 822,000 $ - Total $ 50,055,073 $ 48,308,780 $ 48,854,916 $ 50,006,827 $ 1,698,047 3.5% Increase/(Decrease)
11 Property Tax
FISCAL YEAR 2026-27
Proposed Budget
2026 Q1 Median Home Price Seal Beach $1,725,000
Average Price $2,249,037
*Hdl Property Tax data
12 Property Tax
FISCAL YEAR 2026-27
Proposed Budget
$13.43
$14.47 $15.11 $15.81 $16.33 $17.03 $17.60 $18.20 $18.81 $19.45 $0
$5
$10
$15
$20
$25
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
Seal Beach Assessed Valuation
• $7.9 Billion Orange County Assessor
• 6,494 Parcels
• 4.3% YOY/County 5.41%
• Median Single-Family Home Sales $1.7 M
• Property Tax $17 M
• 34% of General Fund
• Stable Revenue Source
• .15 of $1.00
• On Budget at Mid-year
• April ahead of Budget
13 Sales Tax
FISCAL YEAR 2026-27
Proposed Budget
$11.44 $11.67 $11.49
$12.42
$14.64 $14.28
$15.06 $15.49 $15.93 $16.34
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
Sales and Use Tax Components $14.3 M:
• Largest Consumer Goods and Restaurants
• $300k down from prior year
• Drop in County and State Pools
• Middle East / Discretionary Spending
• Consumer Fear Impacts Largest Sectors
• 2025-26 reflect Measure GG
• 28.6% of General Fund
• Mid-year down 12%
• 3
rd Quarter at Budget
• March above projections
• April below/Offset
• HdL – Projects negative
growth next year -2.5%
• 5.4% in 2028 & 2.6%
forward
GG
14 UUT
FISCAL YEAR 2026-27
Proposed Budget
UUT $5.4 M Budget 10.9%:
• Electric, Natural Gas, Telecommunications
• Lowered in 2014
• Projection Back on Budget through March
• Increases in utility rates
$4.51
$5.35 $5.51 $5.40 $5.44 $5.43 $5.46 $5.49 $5.51 $5.54
$0
$1
$2
$3
$4
$5
$6
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
15 Charges for Services
FISCAL YEAR 2026-27
Proposed Budget
$3.32
$3.66 $3.50 $3.65
$3.32
$3.88 $3.96 $4.05 $4.14 $4.23
$0
$1
$1
$2
$2
$3
$3
$4
$4
$5
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
Charges for Services 7.8% $3.9 M:
• A fee collected to pay for services
related to the activity.
• Subsidized by General Fund
• Planning Fees Offset Aquatics
• Exceeding Budget since Mid-Year
• Next year 16.9% growth
• 2.2% Five year growth
16 Transient Occupancy Tax (TOT)
FISCAL YEAR 2026-27
Proposed Budget
TOT $2.0 M:
• 3 Hotels
• The Pacific Inn
• Ayres
• Hampton
• Continues to exceed all historic levels
• 47 Short Term Rentals
• Above budget March
• Up 5.7% next year and 3.4% forward
$1.67
$1.92 $1.92
$2.05
$1.89
$2.00 $2.07 $2.14 $2.21 $2.28
$0
$1
$1
$2
$2
$3
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
17 Grant Awards
FISCAL YEAR 2026-27
Proposed Budget
$5.4 Million in
Grant Awards
$23.3 million in
applications
Grant Name Applied For Awarded
Community Development Block Grant (CDBG) $ 450,000 $ -
Local Coastal Program Local Assistance Grant Program $ 500,000 $ 500,000 Community Development Block Grant (CDBG) OC Housing &
Community Development Housing Rehabilitation $ 200,000
Community Development Block Grant (CDBG) $ 450,000 $ -
Selective Traffic Enforcement Program (STEP) $ 330,594 $ - Bulletproof Vest Partnership $ 5,497 $ -
Operation Stonegarden $ 150,000 $ 150,000
Supplemental Law Enforcement Services Fund (SLESF) $ 100,000 $ - WaterSMART Water and Energy Efficiency Grant $ 2,000,000 - Surface Transportation Block Grant Program (STBG) $ 6,900,000 $1,100,000 Surface Transportation Block Grant Program (STBG) $ 5,478,000 $ - Safe Streets and Roads for All (SS4A) - 2025 $ 4,320,000 $ - Community Development Block Grant (CDBG) $ 450,000 $ 382,500 Community Development Block Grant (CDBG) $ 450,000 $ -
2024 Environmental Clean Up Program - Tier 1 $ 584,940 $ 584,940 2025 Environmental Clean Up Program - Tier 1 $ 600,000 $ 600,000 Beverage Container Recycling City/County Payment Program $ 6,371 $ 6,371 Bridge Preventative Maintenance Program $ - $ -
Congressional Directed Spending $ - $1,000,000
Congressional Directed Spending $ - $1,092,000
Safe Streets and Roads for All (SS4A) - 2026 $ - $ -
Water Reycling Funding Program $ 300,000 $ -
OCWD Producers Loan $ - $ -
$23,275,402 $ 5,415,811
18 Accomplishments by Department
FISCAL YEAR 2026-27
Proposed Budget
Wednesday Agenda posting
19 Coastal Commissions Grant
Accomplishments by Department
FISCAL YEAR 2026-27
Proposed Budget
20 General Fund Expenditures
FISCAL YEAR 2026-27
Proposed Budget
Regular Salaries,
$11.4 M, 24%
Retirement, $6.8 M,
14%
Other Pay & Benefits,
$5.7 M, 12%
Maintenance &
Operations, $24. M, 50%
21 General Fund Expenditures
FISCAL YEAR 2026-27
Proposed Budget
Amended Estimated Proposed
Actual Budget Actual Budget
Appropriations FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 $ % City Council $ 125,227 $ 201,847 $ 201,847 $ 216,297 $ 14,450 7.2% City Manager $ 1,056,604 $ 1,284,356 $ 1,065,015 $ 1,360,332 $ 75,976 5.9% Risk Management $ 2,875,472 $ 3,262,913 $ 3,201,631 $ 3,498,189 $ 235,276 7.2% Cost escalation trends City Clerk $ 315,368 $ 301,817 $ 291,170 $ 356,325 $ 54,508 18.1% Election Fees City Attorney $ 727,789 $ 1,232,000 $ 1,204,000 $ 856,920 $ (375,080) -30.4% Prior year anomaly Finance $ 1,002,227 $ 1,253,565 $ 1,192,722 $ 1,248,257 $ (5,308) -0.4% Non Departmental $ 3,524,077 $ 4,271,602 $ 5,037,820 $ 4,233,049 $ (38,553) -0.9% Reduced OPEB Police Department $ 16,071,771 $ 17,618,244 $ 17,094,917 $ 17,889,417 $ 271,172 1.5% Baseline service increases Fire $ 7,495,787 $ 7,871,560 $ 7,871,560 $ 7,737,088 $ (134,472) -1.7% Snowball plan ended Community Development $ 1,691,473 $ 1,815,601 $ 1,707,142 $ 1,995,295 $ 179,694 9.9% Contracts and pensions Public Works $ 6,157,172 $ 7,473,328 $ 6,877,998 $ 8,018,457 $ 545,129 7.3% Contracts, Equip, Materials Community Services $ 1,505,709 $ 1,769,970 $ 1,686,891 $ 1,883,549 $ 113,579 6.4% Leisure Class & TPBC Marine Safety $ 2,264,310 $ 2,596,578 $ 2,441,557 $ 2,647,174 $ 50,595 1.9% MS 106 Revenues $ (1,726,067) $ (1,639,331) $ (1,994,500) $ (1,952,619) $ (313,288) 19.1% Revenue 106 Offset Total $ 43,086,917 $ 49,314,051 $ 47,879,770 $ 49,987,730 $ 673,679 1.4% Increase/(Decrease)
22 Maintenance & Operations is Driven by Fixed & Contractual Costs FISCAL YEAR 2026-27
Proposed Budget
CC Discretionary, $.1M, 0%
Supplies/Dues/Training,
$.33M, 1%
Rental/Vehicle
Equipment, $.42M, 2%
Contract
Professional,
$4.67M, 19%
Insurance/Workers Comp,
$3.5M, 15%
Legal, $.86M, 4%
Maintenance, $.21M, 1%
Equipment, Materials, other,
$2.14M, 9%
IT Services, $1.4M, 6%
Refuse, $1.5M, 6%
Fire Services,
$7.84M, 33%
West Comm, $1.02M, 4%
• 5.5% growth YOY – 3.4% Five Year
• Fire Services grow by 4.5% historical
• Contracted Services 3% average
• Insurance 18% historical
• Legal Retainer Services 3%
$18.65 $18.45 $19.34 $20.19
$22.46 $23.69 $24.39 $25.20 $26.06 $26.95
$0
$5
$10
$15
$20
$25
$30
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
23 General Fund Expenditures
24 FISCAL YEAR 2026-27
Proposed Budget
$9.10 $9.09 $9.44 $10.12 $11.07 $11.40 $11.97 $12.45 $12.94 $13.46 $0
$5
$10
$15
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
01-REGULAR SALARIES
$4.95 $4.70 $4.70 $5.19
$5.91 $5.73 $6.09 $6.46 $6.87 $7.31
$0
$2
$4
$6
$8
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
02-OTHER PAY AND BENEFITS
$4.31 $4.66 $4.88 $5.57 $6.28 $6.75 $7.27 $7.43 $7.82 $7.35 $0
$2
$4
$6
$8
$10
2022A 2023A 2024A 2025A 2026B 2027B 2028F 2029F 2030F 2031F Millions
03-RETIREMENT
Personnel Summary
FISCAL YEAR 2026-27
Proposed Budget
City Council,
5.00 City Manager,
6.05 City Clerk, 2.75
Finance, 8.75
Community
Development,
9.00 Community
Services, 8.02
Police, 61.88
2 Police Aides
1 IT Aide
Marine Safety,
23.33 Public Works,
32.01 Full Time Equivalents
FY 2025-26 = 157.18
FY 2026-27 = 156.79
25 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 Angeles-Long 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
• The annual update represents an interim CPI adjustment year, adjustment for FY 2026-27 is
3.16% (annual change in regional CPI)
• Other minor changes are proposed to enhance fee schedule clarity and improve correlation between services provided and costs recovered: Example include addition of late fee charge for reservations
• Effective date July 1, 2026
FISCAL YEAR 2026-27
Proposed Budget
26 Five Year Outlook
FISCAL YEAR 2026-27
Proposed Budget
FORECAST SUMMARY 2027B 2028F 2029F 2030F 2031F
TOTAL REVENUES AND SOURCES 50,006,827 51,580,751 52,886,571 54,234,293 55,588,005 TOTAL EXPENDITURES AND USES 49,989,045 51,868,045 53,761,593 55,976,411 57,430,567 NET OVER/(UNDER) 17,782 (287,294) (875,022) (1,742,118) (1,842,562) • Updates from Measure GG
• Strong growth in property Assessments
• City has maintained expenditures
• Assumptions do not reflect a recession
• Reasonable set of economic and operational assumptions • Forecast is a snapshot in time, an approximate view of what could occur
REVENUE EXPENDITURES
2026-27 2030-31 2026-27 2030-31
2.7% Average
Five-Year Projection
+3.5% Average
Five-Year Projection
27 Revenue Opportunities
FISCAL YEAR 2026-27
Proposed Budget
Key Initiatives Driving Future Financial Stability
28 FISCAL YEAR 2026-27
Proposed Budget
Lifeguard Headquarters
29 FY 26/27 CIP Deferral Strategy
• Target projects that have not started
• Review non-critical projects/near-term repair needs
• Avoid projects tied to external funding
FY 27/28 and BEYOND - PROJECTS WILL BE CONSIDERED IN SUBSEQUENT BUDGET CYCLES $2M Option
• $75k – Storm Drain CCTV & Cleaning
Defer inspection and clearing of selected storm drain lines. • $60k – Lifeguard Mobile Tower Replacements
Defer replacement of the mobile towers; increase maintenance to extend service life • $900k – PD Headquarters Improvements
Defer plumbing & roof assessment, building renovations, parking lot improvements; continue addressing critical maintenance as they arise
• $80k – PD Substation HVAC
Remove installation of permanent HVAC system
• $200k – City Hall HVAC Cleaning & Interior Improvements Defer HVAC duct cleaning and interior carpet replacement • $250k – Zoeter Field Amenities & Lighting
Defer field upgrades (e.g., screens, nets, fencing) and field lighting system replacement. • $500k – Edison Park Play Equipment
Defer playground equipment replacement; continue replacing damaged components as needed. $1M Option
• $75k – Storm Drain CCTV & Cleaning
Defer inspection and clearing of selected storm drain lines. • $60k – Lifeguard Mobile Tower Replacements
Defer replacement of the mobile towers; increase maintenance to extend service life • $500k – PD Headquarters Improvements
Proceed with limited PDHQ improvements.
• $80k – PD Substation HVAC
Remove installation of permanent HVAC system
• $170k – City Hall Interior Improvements
Defer interior carpet replacement. Proceed with HVAC duct cleaning • $200k – Zoeter Field Lighting
Defer field lighting system replacement. Proceed with field upgrades.
Y0 Y1 Y2 Y3 Y4
Design & Permitting
24 mo
Construction
18 mo
Funding Strategy/Debt Issuance
18 mo
LGHQ/PD Substation - Estimated Schedule/Next Steps
6 mo
$2M Option
• $75k – Storm Drain CCTV & Cleaning
• $60k – Lifeguard Mobile Tower Replacements
• $500k – PDHQ Improvements
• $80k – PD Substation HVAC
• $170k – City Hall Carpet Replacement
• $200k – Zoeter Field Lighting
• $75k – Storm Drain CCTV & Cleaning
• $60k – Lifeguard Mobile Tower Replacements
• $900k PD Headquarters Improvements
• $80k – PD Substation HVAC
• $200k – City Hall HVAC & Interior Improvements
• $250k – Zoeter Field Amenities & Lighting
• $500k – Edison Park Play Equipment
$1M Option
$2M Option: Maximum deferral, higher risk
$1M Option: Partial deferral, moderate impact
Tradeoff: service level vs project delivery
Higher deferral increases long-term costs
$2M Option
Select CIP Deferral Option
$1M Option
Hybrid of $2M & $1M Option
None of the above
Initiate Design & Permitting
Select Next Steps
Hold for additional discussion
Do not proceed with LGHQ/PD Substation
Water & Sewer Update
Fund Balance
Fund Balance
Projected Fund Total Proposed Proposed Total Projected Fund Balances Proposed Operating Capital Proposed Proposed Balances Restricted/
July 1, 2026 Revenues Expenditures Expenditures Transfers Out Expenditures June 30, 2027 Committed Unrestricted Water - 501 $22,253,846.99 $20,880,485.00 $8,049,303.28 $17,098,081.86 $440,000.00 $25,587,385.14 $17,546,946.85 $19,364,629.55 $(1,817,682.70) Sewer - 503 $26,836,157.30 $ 4,432,537.00 $2,508,960.47 $ 5,012,137.25 $293,000.00 $ 7,814,097.72 $23,454,596.58 $26,299,426.87 $(2,844,830.29) WATER CIPs
• Advanced Metering Infrastructure*
• Bolsa Chica Well Rehabilitation
• SCADA Improvements
• Lampson Well Treatment System*
• LCWA Watermain Lining*
• Navy Reservoir Rehabilitation
• Seal Way Water/Sewer Upgrade
• Water Infrastructure/Compliance Program
WATER
* Partially funded by external funds
Water Updates
Lampson Well
Treatment System
• Treat nuisance
odor
• $8.6M,
• OCWD Loan
• Award
consideration on
5/11
• 280 working
days
• Construction
schedule to be
confirmed upon
award
LCWA Watermain
Lining
• Transmission
main lining
through
wetlands
• Bid Opening on
5/21
• SRF Funding
• Engineer’s
Estimate: $2.7M
• 70 working days
Navy Reservoir
Rehabilitation
• Rehabilitation of
steel 2.5 MG
reservoir
• Start design in
FY26/27
• $2M Budget
• ~$200k (10%)
rate funded
design
• Construction
funds pending
debt proceeds
Other Projects
• AMI - Pending
BOR Grant
Update
• Bolsa Chica Well
– Lampson Well
must be
completed first
• Securing SRF
funds for Beverly
Manor Well
Financials
• Revenues &
Expenditures are
tracking model
projection
starting Sept
2025
• Water wholesale
costs are
tracking
• Confirming fund
balance,
reserves, debt
coverage, CIP
timing to bond
SEWER CIPs
SEWER
• Pump Station #35
• SCADA Improvements
• Seal Way Water/Sewer Upgrade
• Sewer Mainline Improvement Program
• Sunset Aquatic Park Station
Sewer Updates
Pump Station #35
•Created by-pass
system, panel
upgrades, backup
generation
•$2.1M
•Rate funded
•Scheduling final
phase of panel and
bypass work
SCADA
•1
st Street Station –
complete
•8
th Street Station –
complete
•$53k
•Rate funded
•Next phase:
Sunset Aquatic
Sewer Mainline
•Mainline Lining –
Old Town/Hill
•Bid Opening: 5/6
•Engineer’s
Estimate: ~$1M
•Rate funded
•70 working days
Sunset Aquatic
Center
•Rehabilitate
station and force
main. Coordinate
w/County & HB
•Start design in
FY26/27
•$2.7M Budget
•~$270k (10%) rate
funded design
•Construction
funds pending debt
proceeds
Financials
•Revenues &
Expenditures are
tracking model
projection starting
Sept 2025
•Confirming fund
balance, reserves,
debt coverage, CIP
timing to bond
Next Steps
• Budget Planning & Development in Process
• CIP/Budget April 13
• Budget Workshops May 5th and 7th
• Budget Adoption June 8th
FISCAL YEAR 2026-27
Proposed Budget
Jan Feb Mar Apr May June
Revenue and Expense Projections
Personnel Budget Development
Departmental Budget Preparation
Department CIP Preparation
City Manager Review
Preliminary Budget Preparation
Public Input and Engagement
City Council Review
Budget Adoption
Budget Development Timeline
Fiscal Outlook
• Middle East Fears
• Increased Inflation
• US Economic Policy
Uncertainty
• Continue to Look for
Revenue Opportunities
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