6E
Date: December 16, 2024
To: Chair and Members of the Finance and Governmental Operations Committee From: Sheila Poisson, Finance Director | [email protected] Subject: Finance - Provide Direction Regarding Fiscal Year 2025 -27 Operating Budget & Capital Improvement Plan Priorities. Expenditure: None.
RECOMMENDATION
Recommendation of the Finance Director that the Finance and Governmental Operations Committee provide direction regarding the Fiscal Year 2025 -27 Operating Budget & Capital Improvement Plan Priorities.
FUNDING
None required.
DISCUSSION
The City of Torrance (City) has kicked off the budget development process for the Fiscal Year 2025-27 Operating Budget and Capital Improvement Plan with the first Budget Review Team Meeting taking place on November 7, 2024. The Budget Review Team is a cross -departmental group includ ing department heads, managers, and supervisors from every department. This group supports the overall development of the City’s budget with periodic checkpoints throughout the process. During this meeting, Finance staff presented the overall timeline, outlined goals and expectations, and reviewed vacanc y levels and first -quarter program modifications. The discussion concluded with an overview of proposed department Key Performance Indicators (KPIs), budget enhancement opportunities, and priorities. Below is the general timeline to be followed in the development of this year's budget:
• November 2024:
o November 7, 2024 Budget Review Team #1
• December 2024:
o Departments begin developing submissions for Capital Improvement Plan • January 2025:
o Meet with Departments and continue Capital Improvement Plan development o Meet with Departments to review staffing and non -wage budget needs including zero-based budget exercise
Finance and Governmental Operations Committee
December 16, 2024
• February 2025:
o Continue Capital Improvement Plan development
o Draft Expenditure budget costing
o Meet with Departments to review revenue projections and estimates for upcoming budget cycle and 10-year projection
o Budget Review Team #2
• March 2025:
o Finalize Revenue Budget, Expenditure Budget, and Capital Improvement Plan costing
o Draft Budget Document
• April 2025
o Finalize Budget Document
o Distribute Budget Document
• May 2025
o May 6, 2025 Budget Hearing #1
• June 2024
o June 3, 2025: Budget Hearing #2 & Adoption
o June 17, 2025: Budget Adoption (back-up, if needed)
Beginning in Fiscal Year 2024-25, staff started seeking feedback and approval from the Finance and Government Operations Committee and City Council on a set of budget priorities . The goal of establishing these budget priorities at this point in the budget development process is to incorporate City Council priorities into the City-wide budget. These budget priorities are intended to set broad parameters that shall be a primary focus of the budget development process for a given fiscal year.
Staff’s recommended budget priorities are as follows:
1. Develop a balanced budget including 10 -year projection compliant with City’s financial policies.
2. Identify strategies and new revenue sources to resolve identified Areas of Focus.
3. Attract and retain a highly skilled workforce to deliver critical city services.
4. Prioritize investments in parks, buildings, and public right of way.
5. Expand business attraction and overall economic development efforts.
6. Explore alternative methods that improve cost effectiveness and service delivery of city operations.
7. Expand investment in technology to proactively address cybersecurity resiliency and improve customer experience.
8. Plan for expanded use of alternative fuel vehicles compliant with recent California Air Resources Board (CARB) guidance.
9. Determine resources needed to implement impacts of Park Services Operational Assessment.
10. Identify resources and strategies to begin implementation of findings from the City’s Forensic Review of Fiscal Management Processes.
Finance and Governmental Operations Committee
December 16, 2024
Upon approval, the identified priorities will provide staff with a roadmap to develop the coming year’s budget plan. Staff will connect items included in the budget to these priorities to ensure limited resources are allocated most efficiently.
Staff recommend that the Finance and Government Operations Committee provide direction to staff on the recommended budget priorities so that they can be presented to City Council on December 17, 2024 for approval.