Agenda Item 9A — Torrance City Council, May 6, 2025 (part 1 of 2)

9A
Date: May 6, 2025
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
Ian Dailey, Finance Director
By: Ian Dailey, Finance Director | [email protected] Subject: City Manager and Finance – Conduct First Public Hearing on Proposed Fiscal Year 2025-27 (FY25-27) Operating Budget and Capital Improvement Plan. Expenditure:

None.

RECOMMENDATION
Recommendation of the City Manager and Finance Director that City Council conduct the first public hearing on the Proposed Fiscal Year 2025-27 (FY25-27) Operating Budget and Capital Improvement Plan.

FUNDING
None required.

DISCUSSION
This marks the first of two public hearings to discuss the Proposed Fiscal Year 2025-2027 Operating Budget and Capital Improvement Plan (Attachment 1). As part of the fiscal year 2025-27 (FY25-27) budget planning and development process, two Budget Review Team meetings were held in November 2024 and April 2025 to discuss key performance indicators, current financial trends, staffing needs, status of labor relations efforts, operational efficiencies, capital projects, and multi-year projections.

In January 2025, Finance and City Manager staff met with each city department to identify existing and future capital project needs for inclusion in the Capital Improvement Plan for FY25-26 through FY29-30. In February 2025, Finance and City Manager staff met with each department again to develop their respective FY25-27 operating budgets. Staff utilized a zero-based budgeting strategy and examined all non-wage expenses to properly allocate resources for the coming fiscal year to align with departmental goals and objectives, City Council budget priorities, the City’s Strategic Plan, and the needs of the broader Torrance community. 1 City Council
May 6, 2025

Page 2 ends

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1 Staff continues to remain focused on transparency and financial stewardship by maintaining the City’s OpenGov interactive reporting platform so that any member of the public can view the City’s budget information. The OpenGov online portal can be accessed by visiting https://www.torranceca.gov/government/finance/opengov
At this time, no formal action from City Council is being recommended. Instead, the first public hearing is intended for staff to gather feedback from City Council and members of the public on the proposed FY25-27 Operating Budget and Capital Improvement Plan. Staff will return on June 3, 2025 to conduct the second public hearing, which will include a recommendation to formally adopt the citywide FY25-27 budget as well as the corresponding resolutions establishing the annual operating and capital expenditure budget appropriations.

ATTACHMENTS

1. Proposed Fiscal Year 2025-27 Operating Budget and Capital Improvement Plan (LIMITED DISTRIBUTION)

2.Proof of Publication (Materials Available)
2 PROPOSED
Biennium OPERATINg BUDGET

AND CAPITAL IMPROVEMENT PLAN
FISCAL YEAR 2025 - 2027
CITY OF TORRANCE • DEPARTMENT OF FINANCE

SEE WHAT

TORRANCE IS DOING
3 ATTACHMENT 1

Table of Contents
Budget Message ...................................................................... 1 Message from the City Manager ................................ .................... 1

Executive Summary .............................................................. 11

Fiscal Planning Framework ................................ ......................... 11

Citywide Budget Summary ................................ .......................... 12

Citywide Staffing Summary by Fund ................................ ........... 22

Staffing Changes Summary by Department................................ 22

Non-Wage Program-Level Budget Changes Summary by
Department ................................ ................................ .................. 23

Fund Balance Summary by Fund ................................ ................ 24

Five-Year Capital Improvement Plan................................ ........... 24

City Overview ....................................................................... 27

About Our City................................ ................................ .............. 27

Community Profile ................................ ................................ ....... 28

Citywide Organizational Structure ................................ .............. 30

City Commissions and Advisory Boards ................................ ...... 31

Budget Development ............................................................ 32

Budget Process and Timeline ................................ ...................... 32

Budget Priorities ................................ ................................ .......... 34

Torrance Strategic Plan ................................ ............................... 35

Strategic Plan Performance Indicators by Department.............. 48

Operational Efficiencies................................ ............................... 51

Areas of Focus ................................ ................................ .............. 51

Financial Key Performance Indicators ................................ ........ 55

Economic Outlook ................................ ................................ ....... 66

Revenues ............................................................................. 73

Citywide Revenue Summary by Fund ................................ ......... 73

Citywide Revenue Summary by Classification ............................ 74

General Fund-Operating Fund Revenue Summary by
Classification................................ ................................ ................ 75

General Fund-Measure SST Fund Revenue Summary by
Classification................................ ................................ ................ 80

Expenditures ........................................................................ 81

Citywide Expenditures Summary by Fund ................................ .. 81

Citywide Expenditures Summary by Classification .................... 82

Citywide Expenditures Summary by Department ...................... 83

Staffing Changes Summary by Department................................ 84

Non-Wage Program-Level Budget Changes Summary by
Department ................................ ................................ .................. 87 General Fund-Operating Fund Expenditures Summary by
Department ................................ ................................ .................. 89

General Fund-Operating Fund Expenditure Summary by
Classification................................ ................................ ................ 89

General Fund-Measure SST Fund Expenditure Summary by
Classification................................ ................................ ................ 90

Departments ........................................................................ 91

City Attorney ................................ ................................ ................ 91

City Clerk ................................ ................................ ...................... 93

City Council ................................ ................................ .................. 96

City Manager ................................ ................................ ................ 98

City Treasurer ................................ ................................ ............. 103

Community Development ................................ ......................... 105

Community Services ................................ ................................ .. 114

Finance ................................ ................................ ....................... 118

Fire................................ ................................ .............................. 122

General Services................................ ................................ ......... 125

Human Resources ................................ ................................ ...... 132

Information Technology ................................ ............................ 134

Police ................................ ................................ .......................... 138

Public Works ................................ ................................ .............. 142

Transit ................................ ................................ ........................ 150

Non-Departmental ................................ ................................ ..... 154

Five-Year Fund Projections .................................................. 159

General Fund ................................ ................................ .............. 159

Airport Fund ................................ ................................ ............... 161

Sanitation Fund ................................ ................................ ......... 161

Sewer Fund ................................ ................................ ................ 162

Transit Fund ................................ ................................ ............... 163

Water Fund ................................ ................................ ................. 164

Fleet Services Fund ................................ ................................ .... 165

Self-Insurance Fund ................................ ................................ ... 165

Non-Major Governmental Funds ................................ ............... 166

Capital Improvement Plan ................................................... 169

CIP Structure ................................ ................................ .............. 169

Budget Process ................................ ................................ .......... 170 CIP Summary by Project Type ................................ ................... 171

CIP Summary by Funding Source ................................ .............. 172

Measure SST ................................ ................................ ............... 173

Parks ................................ ................................ ........................... 174

Facilities ................................ ................................ ..................... 180

IT Infrastructure ................................ ................................ ......... 187

Public Right of Way (Streets) ................................ ..................... 189

Sewer/Water Utilities ................................ ................................ . 195

Storm Drains/Basins ................................ ................................ .. 199

Operating Projects ................................ ................................ ..... 201

Other Projects ................................ ................................ ............ 205

Appendix ............................................................................ 206

Classification of Funds ................................ ............................... 206

Employee Compensation and Benefits ................................ ..... 207

Fiscal Policies ................................ ................................ ............. 211

Fund and Reserve Policies ................................ ......................... 216

Debt Policies ................................ ................................ .............. 218

Investment Policy ................................ ................................ ...... 222

Debt Financing Information................................ ....................... 223

Credit Ratings ................................ ................................ ............. 226

Debt Service Schedules ................................ ............................. 227

Glossary ............................................................................. 234

Acronyms ........................................................................... 239

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Last year’s Adopted Fiscal Year 2024-25 Operating Budget and Capital Improvement Plan received an award from the Government Finance Officers Association of the United States and Canada (GFOA).

The GFOA presented the Distinguished Budget Presentation Award to the City of Torrance for its annual budget document for the fiscal year beginning July 1, 2024. To receive this award, a governmental entity must publish a budget document that acts as a policy document, operations guide, financial plan, and communications device. This award is valid for a period of one year. In preparing the Proposed Fiscal Year 20 25-27 Operating Budget and Capital Improvement Plan, staff have once again followed the GFOA’s program rating criteria. This document will be submitted for award consideration for the period beginning July 1, 2025. 5 iii

Additionally, last year’s Adopted Fiscal Year 2024-25 Operating Budget and Capital Improvement Plan also received an award from the California Society of Municipal Finance Officers (CSMFO). The CSMFO presented the Operating Budget Excellence Award to the City of Torrance for its annual budget document for the fiscal year beginning July 1, 2024. This award recognizes public sector agencies with well-presented budget documents, best practices, processes, and procedures and is valid for a one - year period. In p reparing the Proposed Fiscal Year 2025-27 Operating Budget and Capital Improvement Plan, staff have once again followed the CSMFO’s program rating criteria. This document will be submitted for award consideration for the period beginning July 1, 2025.

6 2025

BUDGET MESSAGE
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Budget Message
Message from the City Manager
To Mayor, City Council, and the Torrance Community,

I am pleased to present the Proposed Fiscal Year 2025 -2027 Operating Budget and Capital Improvement Plan. This balanced financial roadmap reflects our commitment to fiscal stewardship while delivering exceptional services and investing in Torrance's future.

Our City's Position: Torrance stands financially resilient amidst an evolving economic landscape.

Our property values continue to rise, major development projects are underway. Our downtown revitalization efforts are progressing with enhanced lighting, improved parklets, and new gateway signage to be installed this year.

Fiscal Planning Framework: The proposed $586.5 million budget prioritizes core service delivery while making strategic investments in infrastructure. This includes $354.2 million for the General Fund and $85.5 million for capital improvements. This budget is grounded in our core fiscal planning framework, which aligns resource allocation consistent with the City’s Strategic Plan, Budget Priorities set by City Council, and our Key Performance Indicators. Our strategy deliberately utilizes accumulated resources for targeted investments that will enhance service delivery and reduce future maintenance costs. This careful approach addresses immediate needs while preserving our long - term financial health and protecting the General Fund’s reserve in compliance with our fiscal policies.

Understanding Our Financial Approach: This year's budget includes a planned use of fund balance totaling $15.7 million across various funds. This isn't a structural shortfall or funding gap, but rather a strategic decision to use savings we've built up for specific purposes:

• General Fund Operating Fund: we're investing $8.1 million from the General Fund unassigned fund balance to help support a $14.6 million commitment for one-time infrastructure improvements that will serve our community for years to come while leaving our reserves untouched and in compliance with our Fiscal Policy • General Fund Restricted Fund: We're using $2.9 million from our pension trust account to smooth the rise in increased retirement costs
• Airport Fund: We're investing $3.0 million in unassigned fund balance to help support a $6.1 million commitment to the capital plan for one-time infrastructure improvements 8 2
• Transit Fund: We're directing $7.8 million toward service improvements and vehicle replacements supported by federal funding
• These investments are partially offset by planned savings in other funds including $2.2 million for the Fleet Services Fund, $1.1 million for the Sewer Fund, and $0.5 million for the Water Fund.

This approach is similar to a family using some of their checking account, after setting enough aside for retirement planning purposes, for a home improvement project that will increase their property's value and reduce future maintenance costs.

Future Year Outlook and Challenges: Looking beyond this budget cycle, several fiscal challenges will require careful navigation. Federal tariffs and monetary policies continue to create economic uncertainty that could impact consumer spending and sales tax revenues. Rising pension obligations will place increasing demands on the budget while the City’s Revenue Trends key performance indicator shifting from “green” to “yellow” indicates a softening of revenue growth and an end to the post pandemic spike. The City's Capital Asset Condition indicator has also shifted from "green" to "yellow," signaling the need for sustained reinvestment in infrastructure. Compliance with zero - emission fleet mandates by 2040 will require significant capital investment and operational planning.

Additionally, the aging civic center facilities, many built in the 1950s and 1960s, will necessitate major capital decisions in the coming years.

Mitigating Measures: The City has already taken proactive steps to address these challenges. Our ten-year financial forecast demonstrates long-term structural balance. The City’s Economic Anomaly Reserve stands at 22% of operating expenditures —exceeding policy requirements—and is projected to continue growing during the forecast period. The pension prefunding trust was established to stabilize future retirement costs, and the City’s diversified revenue base, with property tax revenue now surpassing sales ta x, enhances financial stability. Targeted economic development efforts continue to yield positive results, and regular monitoring of Financial Key Performance Indicators ensures that emerging fiscal issues are identified early and addressed strategically.

Key Investments : This proposed budget also reflects the City Council’s priorities by directing strategic investments into public safety, infrastructure maintenance, technology modernization, zero-emission fleet transition efforts, homelessness response initiatives, and emp loyee recruitment and retention programs. It underscores the City's commitment to operational excellence, community engagement, and prudent financial management.

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The detailed budget reflects our commitment to transparency, accountability, and service excellence. I extend my appreciation to our dedicated staff and to you, our community partners, as we work together to ensure Torrance remains a premier place to live, work, and visit.

Budget Overview
Across all departments, funds, and programs, the proposed FY 2025–26 citywide budget totals $586.5 million. Of this amount, $354.2 million is allocated to the General Fund to support core public services such as public safety, community development, parks and recreation, and public works. In addition to the operating budget, the proposed five-year Capital Improvement Plan outlines $249.6 million in infrastructure investments, with $85.5 million being proposed for appropriation in FY 2025-26. These investments support the maintenance and modernization of public facilities, utilities, and other essential city assets.

In addition to the overall budgetary drivers of change, the proposed FY 2025 -26 operating budget reflects a net increase of 13.95 full -time equivalent (FTE) positions citywide, totaling approximately $1.6 million. This includes 4.95 FTEs in the General Fun d and 9.0 FTEs in the Transit Fund. Of the General Fund increase, 3.0 FTEs are internal transfers from the Transit Fund, consolidating administrative responsibilities under the appropriate departments —General Services and Human Resources. These transferred positions are subject to the City’s indirect cost rate allocation and eligible for reimbursement through applicable cost recovery mechanisms. Details of all staffing changes are provided in the Expenditures section of this document.

In addition to staffing adjustments, the General Fund includes $ 723,000 in targeted investments aligned with City Council budget priorities. These include:

• $150,000 for land lease audit services for city owned properties to ensure accuracy and fiscal accountability
• $404,000 to enhance the General Services maintenance budget, supporting the long -term care of City-owned facilities and equipment
• $484,000 to bolster parks maintenance to improve community spaces and ensure consistent upkeep
• $100,000 for a comprehensive library operations assessment to benchmark against modern service delivery standards
• $50,000 to support employee engagement and retention efforts within the Human Resources Department

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These investments reflect a continued commitment to operational excellence and the proactive management of City assets and services.

Effects of the Economy
As the City transitions into FY 2025 -26, economic conditions are expected to moderate, with muted revenue growth anticipated across key sectors. Following a period of strong post-pandemic recovery, both at the local and national levels, the broader economy is now showing signs of stabilization. In response, the City is approaching financial planning with a prudent and forward -looking strategy to safeguard long-term fiscal sustainability.

The General Fund Operating Budget remains heavily reliant on tax revenues, which comprise 66.8% of total projected revenues ($203.8 million of the $305.1 million total revenue budget) for FY 2025-26.

While tax revenues are expected to increase modestly by $0.7 million (0.4%), this growth reflects a cautious outlook, tempered by downward adjustments in several major rev enue categories, including the Utility Users' Tax, Sales Tax, and Transient Occupancy Tax.

While overall tax revenues for Fiscal Year 2025–26 are projected to remain relatively flat compared to FY 2024 –25, Property Tax revenue stands out as a reliable source of growth, with an estimated increase of $4.2 million (6.1%). For the second consecutive year, Property Tax revenue surpasses Sales Tax as the City’s largest tax revenue source, outpacing it by $10.3 million in the FY 2025 –26 budget. According to the City’s property tax consultant, HdL Coren & Cone, net taxable assessed values in Torrance grew by 5.3%, from $38.2 billion to $40.2 billion, positioning Torrance among the top eight highest -assessed cities in Los Angeles County. The residential sector was the primary contributor to this growth, adding $1.3 billion in assessed value, despite higher mortgage rates driven by federal interest rate adjustments. These trends, combined with property reassessments triggered by turnover under Proposition 13 and ongoing residential development, continue to bolster the City’s property tax base amid broader economic uncertainty.

In contrast, Sales Tax revenue has experienced a gradual decline since peaking at $63.6 million in FY 2021–22. The primary driver of this trend is the Autos & Transportation sector, the City’s second - largest sales tax category. Following pandemic -era suppl y constraints and elevated prices, rising interest rates (Federal Funds rate is currently ranging from 4.25% to 4.50% as of March 2025) have contributed to a slowdown in vehicle purchases and leasing. Despite these headwinds, Torrance benefits from a diver sified sales tax base. The top 25 sales tax producers account for 39% of total receipts, while the top 100 account for 64%, helping to mitigate over -reliance on any single business or sector. Torrance remains a strong performer statewide, ranking in the to p 5% in California and third in Los Angeles County, behind only Los Angeles and Long Beach. 11 5
Recent federal trade policy developments —particularly new or adjusted tariffs —have introduced uncertainty into financial markets. These fluctuations could affect the City’s direct investment returns and contribute to volatility in the CalPERS pension syste m, which remains sensitive to broader market conditions. Additionally, the impact of tariffs on the cost of goods may result in higher prices for construction materials and imported automobiles, which could adversely affect both the City’s Capital Improvement Program (CIP) and its Autos & Transportation tax base. Continued monitoring of these developments is essential to ensure that the City can respond strategically to inflationary pressures and supply chain disruptions.

Legislative Impacts
The City of Torrance actively monitors federal and state legislation and participates in advocacy efforts to secure funding and shape policy in alignment with local priorities. The City’s Legislative Platform, approved by City Council, provides a strategic framework for engagement and ensures timely responses to proposed legislation.

A notable new legislative requirement that affects the budget process is Assembly Bill 2561 (AB 2561), which amends the Meyers -Milias-Brown Act effective January 1, 2025. The law mandates that agencies publicly report annual vacancy data (excluding seasonal/recurrent positions), including recruitment metrics and challenges. If any bargaining unit’s vacancy rate exceeds 20%, additional data must be presented in a public meeting.

Separately, recent federal budget actions resulted in the removal of City -submitted federal funding requests from 2024, despite initial legislative support. These funding losses may require the City to identify alternative sources or leverage the General Fund to advance priority initiatives.

Major Development Projects
The City continues to experience robust development across residential, commercial, and industrial sectors, signaling investor confidence and community vitality. In calendar year 2024, Community Development processed $222 million in permit valuations, up f rom $157 million in 2023. These projects are strengthening the City’s tax base and delivering new housing and commercial opportunities. Below is a list of major projects:

• Gable House Redevelopment Project (22501 Hawthorne Boulevard) : 218 mixed -income apartments with 12,000 sq. ft. of commercial space; construction underway. • Del Amo Circle Apartments (21507 Hawthorne Boulevard) : 200-unit, five -story complex with rooftop amenities; construction underway.
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• Lennar Homes (21515 Madrona Avenue) : 274-unit townhome community; in plan check phase.
• Rose Equities (2325 Crenshaw Boulevard): 272-unit apartment complex with subterranean parking; in plan check phase.
• City Ventures (1407 -1455 Crenshaw Boulevard) : 35-unit townhome development; in plan check phase.
• Prologis (Northeast corner of Prairie/Madrona Avenue and Del Amo Boulevard) : 403,000 sq. ft. industrial warehouse with office space; in entitlement phase. • The Brookhollow Group (KP Torrance Commerce Center, LLC) : 132,425 sq. ft. industrial/cold storage facility; in entitlement phase.

These projects align with the City’s goals of promoting sustainable development, supporting job creation, and expanding housing options —including dedicated units for very low -income households. They are also projected to contribute positively to property t ax growth and long -term economic resilience.

Economic Development Highlights
The City of Torrance continues to take a proactive, strategic approach to business attraction, retention, and revitalization. While the retail sector continues to face national headwinds—evidenced by planned closures of JoAnn’s, Forever 21, and VinFast at Del Amo Fashion Center—new tenants are actively filling these spaces. Anticipated openings at Del Amo Fashion Center include Dr. Martens, Popeyes, Big Blue Swim School, Vuori, Mumu Hot Pot, Chagee, Pro Image Sports Los Angeles, Origami Handroll, Soragumi, ChilimBalam, and Q Clothing, which will occupy the former Forever 21 space.

Additional leases have been executed, with announcements expected later this year.

Torrance has also welcomed innovative businesses across multiple sectors, including:

• Sony Honda Mobility’s AFEELA – U.S. headquarters for electric vehicle development, • Antares – a leader in energy storage for aerospace and defense, and • Northwood Space – advancing global satellite communications from Torrance.

The City continues to strengthen international economic ties and attract foreign direct investment by leveraging relationships with Friendship Cities, the Los Angeles Consular Corps, and global trade organizations. The City is actively pursuing business development opportunities in advanced manufacturing, healthcare technologi es, and retail. Through programs such as the Business Attraction Incentive (BAIT) Program and the Commercial Façade Improvement Program, the City is investing in both catalytic growth and placemaking. For example, lighting and paint enhancements 13 7
were recently approved for a Downtown Torrance parking structure as part of broader revitalization efforts.

Torrance continues to promote its competitive advantages, under the “#WhyTorrance” campaign, by participating in national real estate and retail conferences in New York and Las Vegas. The City also hosted the Los Angeles County Economic Development Corpora tion’s 88 Cities Summit, bringing nearly 250 public and private sector leaders to the Torrance Cultural Arts Center. International economic development efforts also continue, leveraging relationships with global trade organizations, consular officials, and Friendship Cities. Participation in events such as the Select LA Investment Summit and Biocom’s “Spotlight on Torrance” webinar has further elevated the City’s profile in emerging sectors, including life sciences and healthcare technology.

The City is actively investing in Downtown Torrance, with targeted enhancements including upgraded lighting, refreshed planters, new gateway signage, and a signature archway sign scheduled for installation in summer 2025. Public Works has also secured grant funding for median improvements along Cabrillo Avenue, with construction expected to begin this year. Concurrently, efforts to establish a Business Improv ement District (BID) in collaboration with the Downtown Torrance Association are ongoing to ensure long-term vitality and sustainability in the area.

Community Areas of Focus
Responsible Use of Artificial Intelligence in Government To ensure thoughtful implementation of emerging technologies, the City has established an Information Technology Governance Committee, tasked with providing policy direction and oversight for citywide IT initiatives. A primary focus of the Committee is the development of a policy for the responsible use of artificial intelligence (AI) in City operations. As a member of the GovAI Coalition, Torrance is learning from peer agencies and leveraging draft policy templates to shape its approach. City staff are also evaluating AI tools that could enhance service delivery, such as a chatbot feature being explored for the City’s website redesign project.

Community Engagement
In August 2024, the City conducted a statistically valid community survey to better understand how residents and businesses prefer to engage with City services and communications. The results revealed a strong preference for platforms such as YouTube follo wed by Instagram and Facebook.

The Community also finds TorranceAlerts very valuable as a reliable tool to receive information from the City, coming in just above the City’s website. With respect to the City’s website, most people use it less than once a m onth, indicating this platform needs to be simplified so it is intuitive and easily navigable for users that are unfamiliar. Of those using the website, people are most interested in safety messages; municipal services such as trash, street sweeping and water; city events; hot topics; 14 8
and Recreation classes. As a result, these topics must remain front and center in the city’s new website, so the information is easily accessible to end users. These findings are shaping a comprehensive website and mobile app overhaul, emphasizing intuitive navigation and simplified access to services and information.

The City is working with OpenCities (a Granicus product) and user experience design experts to transition to a topic -based, user -centered design. This project also includes an Application Programming Interface (API) integration with platforms such as Accela to streamline business license processing, improving both functionality and efficiency. Staff are also working to improve the facility and space rental experience. This will provide a one -stop shop to book rather than needing to know what department and/or division is responsible for the task, streamlining the experience, with the hopes of also boosting revenue through ease of use. This project is a three -phase project, which is anticipated to have Phase I live by the end of calendar year 2025 (including City’s main website).

Complementing these efforts, Torrance is finalizing implementation of ZenCity, a robust engagement tool that provides real -time sentiment analysis and project dashboards. Early data indicate a 10:1 ratio of positive to negative sentiment across City channe ls, reinforcing community confidence and satisfaction.

Homelessness
Torrance continues to implement a comprehensive, compassionate response to homelessness.

According to the 2024 LAHSA point-in-time count, there were 38 unsheltered individuals in Torrance, a slight decrease from the prior year (41). The total number of mak eshift shelters and tents counted in 2023 was 16 dwellings, and in 2024 it was 25 dwellings. The total number of cars, vans, and RVs being used as shelter that were counted in 2023 was 139 dwellings, and in 2024 was 90 dwellings. As with previous homeless count data releases, the City continues to remind the Torrance community the count simply represents a point-in-time estimate of the number of people sheltered, unsheltered, or in an improvised dwelling counted during one evening and that data from the cou nt is most appropriately interpreted at the County level.

The City’s 3290 Temporary Housing Village, operated by Harbor Interfaith Services, remains at full capacity and has successfully transitioned 41 individuals into permanent housing as of March 2025.

The site includes forty 64 -square feet temporary housing units (tiny homes), one guard booth, three 100-square feet staff trailers, two restroom/shower facilities (one ADA accessible), and a laundry facility.

In addition to interim housing, the City’s Street Outreach Program —now operating six days per week—has connected another 41 individuals to permanent housing solutions since July 2022. The 15 9
City’s Homeless Response Team, led by the City Manager’s Office, coordinates cross -departmental efforts and collaborates with regional partners to balance public safety and service delivery.

Lastly, the City continues to balance the needs of all segments of the community. Through the work of the Torrance Police Department’s Community Lead Officers, and in conjunction with the City’s Outreach Coordinators, the City regularly responds to residents and business concerns regarding homelessness by offering services, reducing encampments, and strengthening City infrastructure.

Transit Department
In January 2025, Torrance Transit celebrated 85 years of service with a commemorative event and the launch of the Connect Torrance Microtransit Pilot, expanding service access within designated zones.

The Transit Department is also preparing for the future , with the second phase of the Mary K.

Giordano Regional Transit Center (RTC) underway, which includes plans for a multi -level parking structure funded through Measure R.

In line with the State’s zero -emission mandates, the City is acquiring 24 new buses, including four zero-emission vehicles, and collaborating with Southern California Edison to develop charging infrastructure at the Torrance City Yard. Torrance Transit is expanding regional connectivity through partnerships with FlixBus (RTC –San Diego route), Hollywood Bowl Shuttle service , Line 1 and 6 frequency enhancements, and plans for the Return of the Red Car Trolley, with a prototype in testing and full launch anticipated by late 2025.

Police Department and Department of Justice and Collaborative Reform The City’s Police Department continues to work closely with the California Department of Justice on its collaborative reform efforts aimed at fostering a safer and more equitable society for all.

Investments in training programs, technology upgrades, and community outreach initiatives will enhance the effectiveness of our law enf orcement efforts while fostering stronger relationships between the police and the community. We are dedicated to equipping our officers with the necessary tools and resources to up hold the highest standards of professionalism and to embrace the principles of 21st Century Policing.

Conclusion: A Vision for a Resilient Future
As Torrance enters Fiscal Years 2025–27, the City remains committed to fiscal discipline, community- centered investments, and long -term sustainability. Despite economic headwinds —including persistent inflation, evolving labor markets, and federal trade uncertainties, the City has produced a budget that reflects a balance of both fiscal discipline and meeting community priorities.

The City is committed to prudent operational improvements that yield long -term cost savings and service delivery enhancements. The Capital Improvement Plan spanning Fiscal Year 2025-26 through 16 10
Fiscal Year 2029 -30 was informed by a comprehensive building condition assessment of over $500 million in city assets (net of accumulated depreciation) . The resulting plan emphasizes ADA compliance, seismic upgrades, and urgent infrastructure repairs. The next phase includes a Parks Master Plan that will engage the community to shape the future of the City’s parks and better define the scale of investment required in these assets for decades to come.

The Capital Improvement Plan, informed by a detailed $500 million building condition assessment, prioritizes ADA compliance, seismic safety, and critical infrastructure needs. The upcoming Parks Master Plan will further define long-term investment needs and engage the community in shaping the future of Torrance’s public spaces. This budget reflects a thoughtful and transparent financial strategy that balances current service delivery with long-term planning. Key pillars include:

• Strategic use of pension prefunding reserves;
• Proactive liability and risk management;
• Continuous monitoring of Key Performance Indicators (KPIs); and • Enhanced transparency through financial dashboards and public engagement tools, including OpenGov.

It is my privilege to present a budget that represents a careful balance of fiscal responsibility, innovation, and responsiveness to community needs. I extend sincere gratitude to the Mayor and City Council for your vision and leadership, to City staff for your dedication, and to our residents and business community for your ongoing partnership. Together, we are building a more resilient and forward-thinking Torrance.

Sincerely,

Aram Chaparyan
City Manager

17 2025

EXECUTIVE SUMMARY
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Executive Summary
Fiscal Planning Framework
The City’s fiscal planning process is guided by a combination of the City’s Strategic Plan , annual budget priorities, and key performance indicators . Together, these elements provide a comprehensive framework to ensure that the City’s financial resources are allocated in alignment with community needs and policy direction set by the City Council. The Proposed Fiscal Year 2025 – 2027 Operating Budget and Capital Improvement Plan have been developed within this framework to support continued progress on key priorities and organizational goals.

Strategic Plan
Adopted on May 18, 2021, the City’s 10 -year Strategic Plan outlines eleven strategic priorities that continue to guide City operations and resource allocations. To support progress tracking and transparency, the City utilizes AchieveIt, an automated software platform that publishes live updates to a publicly accessible dashboard on the City’s website.

As of the most recent Strategic Plan Committee meeting on November 6, 2024, staff reported that out of the 249 sub -goals included in the plan, 131 have been completed, 116 are on track, and 2 are pending initiation. Staff have employed a “tags” methodology to ensure that high -impact projects contribute to multiple strategic objectives, thereby maximizing efficiency and measurable outcomes.

Semi-annual updates to the City Council Strategic Plan Committee continue to serve as a mechanism for monitoring progress and maintaining accountability. Staff is currently developing the statistically valid mid-cycle survey that will evaluate progress on the City’s Strategic Plan.

Budget Priorities
Each year, the Finance and Governmental Operations Committee and City Council establish budget priorities to guide the development of the annual budget. These priorities serve as a roadmap for aligning departmental initiatives with broader City objectives. For the FY 2025 -27 budget cycle, the City has maintained its commitment to the ten adopted priorities outlined in the Budget Development section of this document. These priorities provide continuity and ensure that financial planning supports key strategic outcomes.

Key Performance Indicators
The City monitors two complementary sets of Key Performance Indicators (KPIs) to assess operational effectiveness and fiscal health. The first set evaluates departmental outcomes in relation to the Strategic Plan, ensuring that service delivery is both eff ective and aligned with community expectations.
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The second set includes ten Financial KPIs that use audited financial data to provide a dashboard view of the City’s fiscal condition. Each indicator is assigned a status of red (fail), yellow (monitor), or green (pass). Since FY 2019 -20, the City has made notable improvements: transitioning from seven indicators in the red category to five in green, two in yellow, and three in red. However, the Revenue Trends and Capital Asset Condition indicator s recently shifted from green to yellow, signaling the need f or conservative revenue projections and renewed investment in infrastructure to maintain service levels and asset integrity. These key performance indicators can be found in the summary table below:

As shown above, the Capital Asset Condition and Revenue Trends indicators recently shifted from green to yellow, prompting budget recommendations to maintain conservative revenue projections and expand investment in infrastructure to maintain service levels and asset integrity.

Citywide Budget Summary

The FY25-26 citywide revenue budget is proposed to increase by $ 28.3 million (+ 5.2%), and the expenditure budget is proposed to increase by $56.9 million (+10.7%). Overall, the citywide budget is projected to utilize $15.7 million of its fund balance as broken down below:

• General Fund-Operating Fund – $8.1 million decrease in fund balance: This is the result of additional one-time investments ($14.6 million) through the City’s Capital Improvement Plan and does not recur in FY2026-27.
20 13
• General Fund-Restricted Fund – $2.9 million decrease in fund balance: This is the result of strategic use of the City’s pension prefunding trust to smooth the rising costs of the City’s CalPERS pension costs.
• Fleet Services Fund – $2.2 million increase in fund balance : This is the result of planned contributions to the fund for future vehicle replacements. • Airport Fund – $3.0 million decrease in fund balance : This is the result of additional one - time investments through the City’s Capital Improvement Plan ($6.1 million) and does not recur in FY2026-27.
• Sewer Fund – $1.1 million increase in fund balance: This is the result of planned increases in fund balance for future investment in the Capital Improvement Plan. • Transit Fund – $7.8 million decrease in fund balance: The Transit Fund is generally adopted with a planned use of fund balance attributed to the Depreciation of its assets due to outside federal funding for their replacement. The deficit is elevated due to additional service enhancements (Microtransit demonstration project), which will also facilitate a planned draw on accumulated balances with Los Angeles Metro.
• Water Fund – $513,000 increase in fund balance: This is the result of planned increases in fund balance for future investment in the Capital Improvement Plan.

General Fund-Operating Fund Budget Summary

The General Fund -Operating Fund ’s FY25-26 revenue budget is proposed to increase by $ 17.6 million (+6.1%). This increase is due to a $ 10.0 million increase in the Operating Transfers In classification, primarily due to a $7.3 million increased transfer from the CalPERS Pension Prefunding Trust (CEPPT) Fund to mitigate rising pension costs, a $1.1 million increased transfer from the Airport Fund resulting from land lease revenue growth and a $1.4 million increased transfer from the Measure SST Fund resulting from rising police & fire position costs . Additionally, the Licenses, Fees & Permits revenue classification is projected to inc rease $4.4 million due to increased waste hauler fees , and Use of Money & Property is projected to increase $1.9 million from investment earnings.

The fund’s expenditure budget is proposed to increase by $ 25.1 million (+8.7%). This is primarily the result of increases in employee salaries and benefits , UAL payments , as well as increased contributions to the Fleet Services Fund and the Capital Improvement Fund to prioritize much needed capital repairs and improvements. To offset these expenditure increases, the annual contribution to the City’s CEPPT Fund will decrease by $7.1 million.
21 14
As a result of these proposed changes, the General Fund-Operating Fund’s FY25-26 budget of $313.2 million is expected to operate at a $8.1 million deficit, due to an additional one-time contribution to the Capital Improvement Fund and is anticipated to be balanced in future budget cycles.

Additional details can be found in the Five-Year Fund Projections section of this document.

General Fund-Operating Fund Major Revenues

Listed above are the General Fund-Operating Fund’s top five revenue sources which account for 81% of the budget. A summary of t he General Fund-Operating Fund’s major revenue sources and drivers of change are summarized below.

• Sales and Use Tax revenues are decreasing by $825,000 (-1.3%), primarily due to the Federal Reserve’s monetary policy negatively affecting short-term borrowing and nationwide sales tax trends. Additionally, recently enacted international tariffs are anticipated to have an adverse impact on customer discretionary income levels, which directly impacts sales tax. • Property Tax revenues are increasing by $4.2 million (+6.1%), largely due to steady growth in the City’s net taxable assessed property values and number of residential sales transactions. • Utility Users’ Tax revenues are decreasing by $ 2.7 million (+ 5.8%) based on currently projected electricity, gas, cable, cellular, and telecommunications consumption and use rates.

The primary driver of change is a reduction in the gas consumption at the refinery , which is highly erratic based on refinery activity.
• Charges for Services revenues are increasing by $ 298,000 (+1.2%), primarily due to revenue growth from services provided by the Fire and Community Services Departments. • Operating Transfers In revenues are increasing by $ 10.0 million (+30.1%), largely due to the $ 7.3 million transfer from the CEPPT Fund, $1.1 million in land lease revenue growth transferred from the Airport Fund , and $1. 4 million related to Measure SST Fund support offsetting wage growth in police and fire positions.
22 15
General Fund-Measure SST Fund Budget Summary

The General Fund -Measure SST Fund comprises approximately 7.4% of the General Fund’s overall expenditure budget. This fund separately accounts for the 0.50% transaction and use tax (sales tax) approved by the Torrance voters in June 2022. This measure, titled Safe Strong Torrance, included four main funding priorities: Quality of Life; Fiscal Sustainability; Deferred Maintenance & Community Services/Programs; and Emergency Responsiveness . As the City’s governing body, City Council will continue to approve the budgeted use of these funds ; t he Measure SST Citizens’ Oversight Committee will ensure funds are utilized in accordance with the spending plan as approved by City Council and review the fund’s annual audited financials.

The General Fund -Measure SST Fund ’s FY25-26 revenue budget is proposed to increase by $ 1.0 million (+4.0%) based on FY24-25 consumer spending trends.

The fund’s FY25 -26 expenditure budget is proposed to decrease by $1.3 million (-4.8%) primarily due to a reduction in capital contributions. As a result of these proposed budget changes, the General Fund-Measure SST Fund’s budget is balanced for FY25-26 and FY26-27.

General Fund-Measure SST Fund
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
Quality of Life
Restore/Maintain Public Safety 11,968,204 13,181,051 13,866,637 Homelessness Response Efforts 881,345 1,003,519 1,017,163 Fiscal Sustainability
Reserve Contribution 5,000,000 5,000,000 5,000,000 Deferred Maintenance & Community Services/Programs
Capital Contribution 8,620,160 5,978,715 6,034,192 Emergency Responsiveness
Cyber Security Upgrades 1,025,415 1,020,320 1,030,502 Total Expense 27,495,124$ 26,183,606$ 26,948,494$ 23 16
General Fund-Restricted Fund Budget Summary

The General Fund -Restricted Fund includes Cable’s Public, Education, and Governmental Access (PEG) funding and the CalPERS CEPPT Section 115 Trust Fund. This fund’s FY25-26 revenue budget is proposed to decrease by $5.5 million (-55.6%), primarily the result of a reduced contribution from the General Fund Operating Fund to the City’s CEPPT Fund by $ 7.1 million, offset by a $1.7 million increase in the Use of Money & Property category due to increased investment earnings.

The fund’s FY25 -26 expenditure budget is proposed to increase by $ 7.2 million (+4320.9%), primarily attributable to a $7.3 million transfer from the CEPPT Fund to the General Fund Operating Fund, to mitigate the growth in rising UAL payment contributions . This is the first year since establishing the CEPPT Fund that transfers are being made to the General Fund Operating Fund.

As a result of these proposed changes, the General Fund -Restricted Fund’s FY25-26 budget will operate at a deficit of $2.9 million. While it is planned to strategically draw on this fund’s balance to mitigate the growth in CalPERS UAL payments, the City is committed to making annual contributions to this fund to ensure a healthy balance in the long-term to protect from future pension spikes.

General Fund-Assigned Fund Budget Summary

The General Fund -Assigned Fund includes Replacement Funds and the City’s Economic Anomaly Reserve Fund. Following a recommendation from a third-party consultant, Reserve Fund, formerly classified under the “Unassigned” line in the City’s balance sheet will now be classified as “Assigned” to enhance fiscal transparency and improve oversight. This fund’s FY25-26 revenue budget is proposed to decrease by $ 886,000 (-10.7%) due to a reduction in contributions to replacement funds (annual “set aside” funding for planned future equipment purchases).

The fund’s expenditure budget is proposed to increase by $676,000 (+9.9%) in FY25-26 and $4.1 million (54.2%) in FY26-27 primarily due to planned replacements of aging telecom, network and radio equipment.

24 17
As a result of these proposed changes, the General Fund -Assigned Fund’s budget will operate at a deficit of $107,000 in FY25-26 and a deficit of $4.2 million in FY26-27. It is anticipated that fiscal years 2027-35 will operate at a surplus, which will continue to build the balance for future replacements.

General Fund Reserves
Beginning in FY 2024 -25, the City will update its accounting treatment of the Economic Anomaly Reserve Fund (Reserve Fund). Historically reported within the City’s Unassigned Fund Balance in the Annual Comprehensive Financial Report (ACFR), the Reserve Fund will now be categorized as part of the Assigned Fund Balance, enhancing transparency and reinforcing City Council oversight. Any allocation to or use of the Reserve Fund will require explicit City Council approval. As a result, the Unassigned Fund Balanc e will reflect the City’s most flexible, unallocated financial resources, providing a clearer picture of available discretionary funds.

Staff recommend setting the Reserve Fund at $68.9 million as of June 30, 2025, which represents 22% of the General Fund operating expenditure budget for FY 2025 -26. This exceeds the City Council’s Fiscal Policy reserve requirement by 2%, or approximately $6.3 million, and reflects the City’s continued focus on long-term financial resilience.

To align with this change in accounting, one of the City’s ten Financial Key Performance Indicators (KPIs) has been updated. The previous indicator monitoring General Fund Reserves now evaluates the Unrestricted Fund Balance Ratio, incorporating both Assig ned and Unassigned Fund Balances.

This adjustment is consistent with best practices and correlates with the former State Auditor’s Local Government High-Risk Dashboard methodology.

Fleet Services Fund Budget Summary

The Fleet Services Fund’s FY25-26 revenue budget is proposed to increase by $1.9 million (+14.5%) due to a change in accounting for the maintenance of city vehicles that centralizes these costs and for the increasing cost of parts, fuel, and labor.

The fund’s FY25-26 expenditure budget is proposed to increase by $4.3 million (+48.9%), mainly due to the change in accounting for the maintenance of city vehicles that centralizes these costs , the depreciation for new vehicles added to the fleet, and rising labor costs. 25 18
As a result of the proposed budget changes, the FY25-26 Fleet Services Fund budget will operate at a surplus of $2.2 million, which will allow the City’s to continue replacing its vehicular assets. Based on current assumptions, the beginning fund balance going into FY25 -26 will be $ 50.0 million with an ending fund balance of $ 65.9 million by FY29 -30. Additional details can be found in the Five-Year Fund Projections section of this document.

Self-Insurance Fund Budget Summary

The Self -Insurance Fund’s FY25-26 revenue budget is proposed to increase by $520,000 ( +2.2%) after recalculating contributions from departments to maintain adequate funding for anticipated settlements and workers compensation claims cases.

The fund’s FY25-26 expenditure budget is proposed to increase by $787,000 (+3.3%), primarily due to anticipated increases in insurance premiums and costs pertaining to future claims and settlements.

As a result of the budget changes, the FY25-26 Self Insurance Fund budget will operate at a deficit of $123,000. Over the last 5 years the City has successfully ramped up contributions to this fund restoring balance and making incremental progress on its overall deficit fund balance. Beginning FY26-27, it is anticipated that the fund will be operating at a small surplus through FY34 -35. Based on current assumptions, the beginning fund balance going into FY25-26 will be -$50.8 million with an ending fund balance of -$50.6 million by FY29 -30. Additional details can be found in the Five-Year Fund Projections section of this document.

Airport Fund Budget Summary

The Airport Fund’s FY25-26 revenue budget is proposed to increase by $2.7 million (+14.7%), mainly the result of increases in ground lease rent, hangar storage fees, and landing fees , and increased reimbursements related to on-going legal matters.

26 19
The fund’s FY25-26 expenditure budget is proposed to increase by $5.9 million (+32.5%), primarily due to increased transfers to the General Fund related to non -aeronautical lease revenues and a n increase in transfers to the Airport Capital Fund for the renovation of airport hangars and taxiway lighting replacement.

As a result of the budget changes, the FY25-26 Airport Fund budget will operate at a deficit of $3.0 million. Based on current assumptions, the beginning fund balance going into FY25 -26 will be $3 9.2 million with an ending fund balance of $55.6 million by FY29-30. Additional details can be found in the Five-Year Fund Projections section of this document.

Sanitation Fund Budget Summary

The Sanitation Fund’s FY25-26 revenue budget is proposed to decrease by $59,000 (-0.3%), largely due to a decrease in transfers because of the consolidation of the Sanitation Vehicle Replacement Fund into the Sanitation Operating Fund and a reduction in solid waste franchise fees, which are partially offset by the increase in the charges for services due to the annual rate increase.

The fund’s FY25-26 expenditure budget is proposed to decrease by $ 777,000 ( -3.9%), due to a reduction in the Other Operating Transfers Out category, as a result of the consolidation of the Vehicle Replacement Fund into the Operating Fund.

As a result of the budget changes, the FY25 -26 Sanitation Fund budget will operate at a deficit of $470,000. Based on current assumptions, the beginning fund balance going into FY25-26 will be $14.6 million with an ending fund balance of $18.2 million by FY29-30. Additional details can be found in the Five-Year Fund Projections section of this document.

27 20
Sewer Fund Budget Summary

The Sewer Fund’s FY25-26 revenue budget is proposed to decrease by $415,000 (-4.8%), primarily due to the consolidation of the Sewer Vehicle Replacement Fund into the Sewer Operating Fund. This decrease was partially offset by increase in charges for services driven by higher sewer charges.

The fund’s FY25-26 expenditure budget is proposed to increase by $1.3 million (+22.5%), primarily due to an increase in depreciation of added capital assets.

As a result of the budget changes, the FY25 -26 Sewer Fund budget will operate at a surplus of $1.1 million. Based on current assumptions, the beginning fund balance going into FY25 -26 will be $5 3.6 million with an ending fund balance of $69.1 million by FY29-30. Additional details can be found in the Five-Year Fund Projections section of this document.

Transit Fund Budget Summary

The Transit Fund’s FY25-26 revenue budget is proposed to increase by $3.3 million (+9.3%) due to increases in Net Toll grant funding for Line 1 and Line 6 Express Lanes, Senate Bill 1, Prop A 40% Discretionary fund, and allocations from Proposition A.

The Fund’s FY25-26 expenditure budget is proposed to increase by $4.8 million (+11.6%), mainly due to planned increases in employee salaries and benefits , an increase in contract services for the MicroTransit Pilot project (approved by City Council in August 2024), and increased contributions to the Self-Insurance Fund and indirect cost rate charges.

As a result of the budget changes, the FY25 -26 Transit Fund budget will operate at a deficit of $7.8 million. The Transit Fund is generally adopted with a planned use of fund balance attributed to the Depreciation of its assets due to outside federal funding for their replacement. The deficit is elevated due to additional service enhancements (Microtransit demonstration project) and a planned draw on accumulated balances with Los Angeles Metro. Staff will closely monitor this fund and make adjustments where necessary to ensure long -term balance. Based on current assumptions, the 28 21
beginning fund balance going into FY25-26 will be $41.4 million with an ending fund balance of $16.2 million by FY29-30. Additional details can be found in the Five-Year Fund Projections section of this document.

Water Fund Budget Summary

The Water Fund’s FY25 -26 revenue budget is proposed to increase by $ 7.0 million (+12.7%) , primarily due to increased demand/usage and a water rate increase of 6.5% that will take effect on January 1, 2026.

The fund’s FY25-26 expenditure budget is proposed to increase by $8.1 million (+15.3%), primarily due to the Water Supply Costs expenditure classification increas ing from both demand/usage and cost of water. Prior years conservation restrictions and practices have reversed, and household usage is up. Additionally, the Desalter plant is being temporarily decommissioned, requiring the need to purchase more water from the Metropolitan Water District (which is more costly), until the plant comes back online.

As a result of the budget changes, the FY25 -26 Water Fund budget will operate at a surplus of $513,000. Based on current assumptions, the beginning fund balance going into FY25 -26 will be $150.0 million with an ending fund balance of $ 180.1 million by FY2 9-30. Additional details can be found in the Five-Year Fund Projections section of this document.

29 22
Citywide Staffing Summary by Fund

The proposed FY25 -26 citywide staffing budget will increase by 13.95 full-time equivalent (FTE) position. The FTE figures reflected in the Other - Capital Improvement/Grants row separately track FTE allocations for positions that are funded through the Capital Improvement Plan or non-recurring grant sources. Additional details can be found in the Expenditures and Departments sections of this document.

Staffing Changes Summary by Department

Fund Type
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
Increase/
(
Decrease)
FY25-26
Increase/
(
Decrease)
General Fund 1,149.41 1,149.39 1,156.55 1,161.50 1,161.50 4.95 - Airport Fund 12.07 12.37 12.17 12.17 12.17 - - AQMD 0.75 0.90 0.90 0.90 0.90 - - Area G Fund 1.00 1.00 1.00 1.00 1.00 - - Fleet Services Fund 34.60 33.60 33.60 33.60 33.60 - - HOME Investment Partnership 2.50 - - - - - - Low Mod Fund 0.35 0.30 0.30 0.30 0.30 - - Sanitation Fund 38.95 38.95 39.90 39.90 39.90 - - Section 8 Housing 4.58 4.58 5.33 5.33 5.33 - - Self-Insurance Fund 8.50 9.50 7.50 7.50 7.50 - - Sewer Fund 15.90 15.90 15.80 15.80 15.80 - - Transit Fund 196.80 196.80 196.80 205.80 205.80 9.00 - Vanpool Fund 0.70 0.70 0.70 0.70 0.70 - - Water Fund 40.45 39.45 38.40 38.40 38.40 - - Other - Capital Improvement/Grants 23.43 25.40 24.30 24.30 24.30 - - Total FTE Count 1,529.99 1,528.84 1,533.25 1,547.20 1,547.20 13.95 -

FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
FTE
I
ncrease/
(Decrease)
FY26-27
FTE
I
ncrease/
(Decrease)
FY25-26
Expenditure/
(
Savings)
FY26-27
Expenditure/
(
Savings)
City Manager 47.30 45.25 45.25 (2.05) - (83,700) - Community Development 74.00 77.00 77.00 3.00 - 301,225 - Finance 38.25 38.25 38.25 - - 10,413 - General Services 116.75 117.75 117.75 1.00 - 62,000 - Human Resources 14.00 16.00 16.00 2.00 - 190,975 - Information Technology 39.00 44.00 44.00 5.00 - 983,500 - Police 359.00 354.00 354.00 (5.00) - (632,550) - Public Works 208.00 209.00 209.00 1.00 - 62,285 - Transit 196.80 205.80 205.80 9.00 - 750,025 - Total 13.95 - 1,644,173$ - 30 23
As shown in the preceding table, the City’s FY25-26 operating budget includes a proposed increase of

13.95 FTE position, the net result of various departmental staffing modifications requests. Additional details can be found in the Expenditures and Departments sections of this document.

Non-Wage Program-Level Budget Changes Summary by Department

The table above highlight s the changes in non-wage expenditures related to new or expanded program initiatives, while ignoring budget changes that are primarily the result of fluctuations in cost or changes in the overall budget structure. This is discussed in further detail in the Expenditures and Departments sections of this document.

The summary schedule above shows the citywide projected fund balance by fund through the end of FY26-27. Further details are provided in the Departments and Five-Year Fund Projections sections of this document.

Five-Year Capital Improvement Plan
The table below summarizes the proposed capital budget appropriations for FY 2025 -26 through FY 2029-30. The proposed FY 2025 -26 capital budget includes $85.5 million in appropriations , with planned capital expenditures totaling $249.6 million over the five -year planning period. Capital investments continue to focus on sustaining and improving essential infrastructure, including public facilities, parks, utilities, and transportation systems. These investments are aligned with the City’s Strategic Plan and financial indicators, and are made possible in part through revenue generated by Measure SST. To date, $6.3 million in SST revenue has been committed to various projects, with an additional $8.2 million planned in FY 2025-26 for upgrades to City facilities and parks.

Of note, the City’s Financial KPI for Capital Asset Condition declined from “green” to “yellow” in FY 2023-24. This change was the result of a 1.1% increase in the value of capital assets, which fell short of the 2% annual benchmark. While some progress wa s made, renewed focus has been placed on addressing this performance gap. The Proposed Fiscal Year 2025 –26 Capital Improvement Plan prioritizes reinvestment in City assets to improve this indicator and return it to the green category.

Fund Type Fund Name
FY24-25
Projected
Fund Balance
FY25-26
Proposed
Revenue Budget
FY25-26
Proposed
Expenditure Budget
FY25-26
Projected
Fund Balance
FY26-27
Proposed
Revenue Budget
FY26-27
Proposed
Expenditure Budget
FY26-27
Projected
Fund Balance
General Fund General Fund - Operating Fund 11,185,803 305,105,660 313,210,035 3,081,428 316,386,588 316,386,588 3,081,428 General Fund General Fund - Measure SST 3,668,173 26,183,606 26,183,606 3,668,173 26,948,494 26,948,494 3,668,173 General Fund General Fund - Restricted 43,442,715 4,416,579 7,346,489 40,512,805 4,242,582 8,792,810 35,962,577 General Fund General Fund - Assigned 76,483,350 7,396,091 7,502,816 76,376,625 7,396,091 11,571,849 72,200,867 Nonmajor Govtl Funds AQMD Fund 435,328 211,134 360,478 285,984 217,468 415,305 88,147 Nonmajor Govtl Funds Debt Service Fund 6,808 23,625,753 23,625,753 6,808 24,154,567 24,154,567 6,808 Nonmajor Govtl Funds Meadow Park Parking Lot District 276,021 41,205 30,205 287,021 41,205 30,230 297,996 Nonmajor Govtl Funds Low Mod Fund 4,076,536 - 70,338 4,006,198 228,623 65,719 4,169,102 Nonmajor Govtl Funds Section 8 Housing 698,436 9,345,309 9,250,801 792,944 10,090,382 9,976,195 907,131 Nonmajor Govtl Funds Street Lighting Fund - 1,912,828 1,912,828 - 1,912,828 1,912,828 - Nonmajor Govtl Funds Traffic Safety Fund 7,750 70,950 70,950 7,750 73,080 73,080 7,750 Nonmajor Govtl Funds Vanpool Fund - 261,749 261,749 - 264,205 264,205 - Enterprise Funds Airport Fund 39,224,564 21,044,124 24,002,581 36,266,107 21,607,369 21,759,455 36,114,021 Enterprise Funds Sanitation Fund 14,605,735 18,859,697 19,329,652 14,135,780 20,287,133 19,951,107 14,471,806 Enterprise Funds Sewer Fund 53,622,107 8,201,108 7,131,592 54,691,623 8,447,146 6,847,734 56,291,035 Enterprise Funds Transit Fund 41,441,563 38,508,429 46,301,919 33,648,073 39,441,739 48,750,749 24,339,063 Enterprise Funds Water Fund 150,083,005 61,768,887 61,256,156 150,595,736 65,894,566 67,024,281 149,466,021 Internal Service Funds Fleet Services Fund 50,043,874 15,269,616 13,049,141 52, 264,349 15,728,552 14,110,080 53,882,821 Internal Service Funds Self-Insurance Fund (50,798,208) 24,178,667 24,301,818 (50,921,359) 25,778,667 25,760,086 (50,902,778) Fiduciary Funds Redevelopment Agency Fund (38,550,768) 4,339,486 1,252,179 (35,463,461) 4,351,214 1,163,453 (32,275,700) Total Fund Balance 399,952,792$ 570,740,878$ 586,451,086$ 384,242,584$ 593,492,499$ 605,958,815$ 371,776,268$ 32 25

As previously mentioned, the proposed FY 2025-26 capital budget prioritizes strategic investments in the City’s infrastructure, community assets, and public facilities to ensure long-term service delivery, accessibility, and safety across Torrance. The pla n reflects a balanced approach that addresses immediate needs while supporting the City’s broader goals for resilience, equity, and modernization.

The largest share of capital investment is allocated to Public Right -of-Way projects, with a total appropriation of $35.1 million dedicated to enhancing the City’s roadways and sidewalk infrastructure. These projects are designed to maintain and improve street conditions, enhance pedestrian safety, and extend the life of existing transportation infrastructure throughout the community. The three most significant projects in this category include:

• School Safety and Accessibility Program – $19.1 million • Residential Slurry Seal Program – $7.4 million
• Arterial Street Pavement Sealing Program – $3.5 million

The second largest capital investment area is Parks, with $14.8 million allocated to park improvements across the City. Key projects include:

• Paradise Park Rehabilitation – $6.9 million: This project includes comprehensive upgrades to irrigation, utility infrastructure, ADA access, playgrounds, picnic areas, restrooms, and tennis courts.
• Columbia Park Enhancements – $3.9 million: A multi-phase initiative that includes the WWII Memorial Wall, a new dog park, turf soccer fields, and renovations to playgrounds, bocce courts, restrooms, and picnic areas. The current appropriation supports Phase 2 funding and additional costs associated with the memorial project.
• Walteria Park Improvements – $1.7 million : Rehabilitation of playing courts, perimeter fencing, and wind screens to ensure functionality and safety.

Capital Project
Type
Life-to-Date
Budget
Life-to-Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Parks 12,948,354 11,379,430 14,827,313 3,075,000 5,095,000 6,308,842 1,000,000 Facilities 10,104,270 7,380,348 9,741,490 5,169,500 6,897,792 9,632,971 1,240,210 IT Infrastructure 170,000 170,000 225,000 145,000 - - - Public Right of Way 73,916,685 38,167,261 35,133,833 23,886,131 14,071,600 12,969,333 13,164,333 Sewer/Water Utilities 49,665,333 22,034,284 6,450,000 5,550,000 16,543,306 8,350,000 1,850,000 Storm Drain/Basins 13,379,438 7,778,708 9,688,000 8,705,000 6,489,402 1,611,000 1,355,000 Operating Project 15,358,661 5,784,906 4,669,554 4,527,000 1,025,000 140,000 - Other 1,754,917 1,680,917 2,000,000 1,000,000 250,000 250,000 250,000 Contingency - - 2,772,037 1,067,118 1,171,369 1,092,675 254,021 Total Expenditures 177,297,658$ 94,375,854$ 85,507,227$ 53,124,749$ 51,543,469$ 40,354,821$ 19,113,564$ 33 26
Additional investments include enhancements at Wilson Park (street frontage improvements), Alta Loma Park (playground upgrades), and Guenser Park (walking path repairs). The budget also includes $300,000 for the development of a citywide Parks Master Plan, which will provide a long-term vision for park improvements and gather community input to align future investments with public expectations. It is anticipated that the cost implications identified through this planning effort may exceed currently available resources, underscoring the importance of pursuing external funding such as grants and partnerships.

Investments in municipal facilities total $9.7 million, with major projects at:

• Torrance Municipal Airport – $3.3 million: Upgrades include improvements to taxiway lighting systems and hangar facilities.
• Torrance City Yard – $2.4 million: Includes roof replacement at the City Services Building, Fleet Services renovations, and the first phase of electric vehicle charging infrastructure — aligned with City Council’s FY 2025–26 budget priorities. • Torrance Regional Transit Center – $1.25 million: Funding to support capital improvements that enhance transit operations and connectivity.

As part of the City’s forward -looking capital improvement strategy, efforts are underway to advance the Torrance Civic Center Master Plan—a comprehensive vision to reimagine and modernize the City’s civic core. Many of the existing buildings date back to t he 1950s and 1960s and have surpassed their intended service life. Master plan alternatives under development consider consolidation of government services; adaptive reuse of aging facilities; improved pedestrian circulation and access; and integration of new community amenities. The planning process also includes an evaluation of potential revenue -generating opportunities and public -private partnerships to help finance future capital investment.
34 2025

CITY OVERVIEW
35 27
City Overview
About Our City 2023 2024
Population* 143,057 142,910
Population per square mile 6,978.4 6,971.2
Year of Incorporation 1921
Governance Structure Council-Manager
Area (square miles)** 20.5
Median Household Income** $109,554 $113,105
Number of Businesses*** 13,439 13,987
Assessed Value† $38.2 billion $40.2 billion
Commercial Parcels†
Net Table Value
1,447
$6.2 billion
1,445
$6.5 billion
Residential Parcels†
Net Taxable Value
37,876
$25.6 billion
37,948
$26.9 billion
Industrial Parcels†
Net Taxable Value
539
$3.1 billion
539
$3.4 billion
*State of California Finance Department, Demographic Research Unit **US Census Bureau
***US Department of Finance
† HdL Companies

Race and Hispanic Origin of Residents

36.4%

3.5%

0.4%

38.7%

0.1%

13.0%

19.3%
0%
10%
20%
30%
40%
50%
White
Black
American
Indian and
Alaska Native
Asian
Native
American and
Other Pacific
Islander
Two or More
Races
Hispanic or
Latino
Source: US Census Bureau QuickFacts
36 28
Community Profile
The City of Torrance (“City”) was first developed in the early 1900s as a planned garden-industrial community.

The plan by Frederick Law Olmstead Jr., with Irving Gill as Chief Architect, provided a balance for industrial,
commercial, and residential uses. The City was
incorporated in May 1921, one year after the death of
its founder and namesake, Jared Sydney Torrance,
with a land area of 3.8 square miles and a population
of 1,800. Rapid growth occurred during the 1950s and
1960s, and the majority of the h ousing stock was built during those two decades. The City is now largely built out and has had a relatively stable population for the last two decades.

The City is governed by a seven -member City Council, comprised of an elected mayor and six councilmembers. While the Mayor is elected at large, councilmembers are elected by district, and they must reside in their district. On June 19, 2018, the City Counc il adopted an ordinance establishing by-district elections and approved an election calendar for these newly created districts. Districts 2, 4, and 6 were phased in during the 2020 election, and Districts 1, 3, and 5 were phased during the 2022 election.

In addition to the Mayor and Council, the City Clerk and the City Treasurer are also elected positions. The City Clerk is Clerk of the Council and keeper of the City Seal and is responsible for the safekeeping of the official records. The Clerk accepts cla ims, administers oaths, conducts
municipal elections, maintains the Municipal Code, attests all City documents, and prepares and publicly posts
agendas for City Council meetings.

The City Treasurer is responsible for the investment of idle funds and administers the City’s deferred compensation
plan and the Public Agency Retirement System (“PARS”)
supplemental employee pension plan.
37 29
As a full-service city, Torrance prides itself on the wide range of services it provides to residents, including police and fire protection, sanitation and water services, airport and bus transit services, construction and maintenance of streets and infrastructure, and recreational activities. The City is located in southwest Los Angeles County in the heart of the South Bay, with 1.5 miles of beautiful coastline. Torrance enjoys a pleasant year-round climate with warm temperatures, sea breezes, and low hu midity. Temperatures average within the low 60s and high 70s °F in summer months and high 40s and high 60s °F in winter months.

The City is home to the Torrance Unified School District, which consists of 17 elementary, 8 middle, 4 high schools, 1 continuation and 1 alternative high school, and 3 adult school campuses, and is one of the largest employers in the City. Torrance is als o home to El Camino Community College that boasts a 126-acre campus.

Organizational Profile Comparison
The City of Torrance collects information from comparison cities that are similar in population size, geography, number of full -time equivalent employees, total adopted budget, and are full -service cities. Full-service cities include their own police and f ire departments as well as providing utilities such as water and wastewater services.

Source: Cities’ fiscal year 2024-2025 budgets
*State of California, Finance Department, Demographic Research Unit

FY24-25 Organizational
Profile Comparison Torrance Glendale Burbank Pasadena Population* 142,910 191,586 105,603 139, 692 Citywide Adopted FTE 1,529.8 1,963.2 1,535.7 2,406.9 General Fund Adopted FTE 1,155.1 1,106.0 988.3 1,081.3 General Fund Adopted Budget (Expenditures) 286,824,553$ 325,659,744$ 258,693,806$ 341,950,039$ Citywide Adopted Budget (Expenditures) 525,407,237$ 1,204,386,024$ 872,003,825$ 1,156,600,000$ Residents serviced per FTE (General Fund) 124 173 107 129 Total General Fund Budget Per Capita 2,007$ 1,700$ 2,450$ 2,448$ 38 30
Citywide Organizational Structure
The following charts illustrate the citywide organizational structure including elected positions, City Departments, City Commissions and Advisory Boards.

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City Commissions and Advisory Boards

40 2025

BUDGET DEVELOPMENT
41 32
Budget Development
Budget Process and Timeline
The City follows a biennial budget development process which allows for effective short -term program management and long -range planning. The City’s use of the biennial budget process also complies with the City Charter (Article 11) which requires a fiscal year period beginning July 1 and ending June 30; a proposed budget preparation by the City Manager; a proposed budget submission by City Manager to City Council on or before June 1, and budget adoption by City Council (at least 4 affirmative votes) by June 30 after completing two public hearings to give an opportunity for community input. The City has continued its use of OpenGov as a means of maintaining transparency during the budget development process. OpenGov is an online dashboard linked to the City’s financial system that allows the public to review the City’s annual budget information and actual financial performance.

The City budget is comprised of a biennial operating budget and five-year capital improvement plan.

The biennial operating budget funds the core day -to-day operations and the City’s five -year capital improvement plan funds major facility, equipment, and in frastructure investments. The City’s biennial operating budget and five -year capital improvement plan are developed , proposed, and adopted every two years. However, the City Council only approves the annual appropriations for the upcoming fiscal year. This highly collaborative and public process engages the City Council, City staff, and the community at large. The City Manager is tasked with developing a budget that advances the City in concert with the outlined policy objectives of the City Council as well as the goals of the Strategic Plan. The City Council is responsible for reviewing and approving the budget along with adopting the appropriations resolution to establish expenditure limits. The Finance Department ’s Budget Division is responsible for coord inating, developing, and monitoring the annual budget process.

The City is required by the State to maintain a balanced budget each year . A balanced budget is defined as one in which total revenues meet or exceed the approved spending levels. While the use of fund balance may be considered to balance the budget in a given year, it is not a preferred long - term solution and should not be used for ongoing expenses. The City aims to achieve a structurally balanced budget, where recurring revenues consistently cover recurring expenditures. In addition to the annual budget, staff prepare and present First Quarter and Mid -Year Budget Review Reports to provide updates on the budget throughout the year. These reports analyze budget performance and offer an opportunity to adjust revenue or expenditure budgets , as well as include any approved program modifications. Moreover, staff also incorporate s multi-year projections to ensure the long - term strategy is balanced and achievable.
42 33

November/
December
• Due to the high level of complexity involved with developing a comprehensive budget, the City’s Finance Department begins preparations in early November. A schedule of deliverables is created and distributed to departments to facilitate a citywide collaborative approach.
• The Finance Department receives direction from City Council on budget priorities and elicits feedback from stakeholders on the upcoming budget cycle.

January/
February
• Finance Department conducts meetings with all departments to determine operating and capital requirements. These discussions include a detailed review of budgeted staffing level and an assessment of non-wage expenditures.

March/April
• Finance Department conducts meetings with all departments to determine revenue projections for the next year.
• Finance Department begins drafting the proposed operating budget and capital improvement plan.

May/June
• To encourage public participation in the budget development process, two public hearings are held during the presentation of the proposed operating and capital budgets. • During the second public hearing, City Council formerly adopts resolutions approving the City's operating and capital budgets, annual appropriations limit (GANN limit) and adjustment factors and the investment policy for the coming fiscal year. 43 34
Budget Priorities
On an annual basis, the Finance and Governmental Operations Committee and City Council have the opportunity to provide direction on budget initiatives that should be prioritized in order to achieve the City’s overarching Strategic plan objectives.

On December 17, 2024, City Council approved the following budget priorities:

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.

44 35
Torrance Strategic Plan
The City of Torrance continues to invest in key areas that connect services provided to the needs of the community served. The City’s first Strategic Plan was adopted in 1996 to create a common vision and a process for anticipating the future based on input from throughout the community. The City Council aimed to develop clear direction for the City’s strategic priorities based upon the realities we had
experienced and could anticipate, as well as the hopes, aspiration and best judgement of the residents, businesses, and employees of the City.

For each of the strategic plan priorities, a set of goals are developed to direct future actions to achieve the vision of the Plan. The goals are the heart of the Strategic Plan because they describe the end result towards which all efforts are directed. This provides the basis for future decisions about the nature, scope, and significance of actions which are necessary to carry out the Strategic Plan.

As a result of the City Council Strategic Plan Committee ’s efforts , the 2021 Strategic Plan (full document and process available
here) was published, outlining the following strategic priorities that remain in effect today:

• Appearance, Character, and Quality of the Community
• Communication and Civic Involvement
• Economic Development
• Education, Diversity and Enrichment
• Housing
• Infrastructure
• Mobility
• Reliable Revenue Base and Effective Asset Management
• Responsive, Accountable and Cost-Effective Government • Safe, Secure and Equitable Community
• Stewardship of the Environment

45 36
Strategic Plan Priorities Summary

46 37
Strategic Plan Priority 1 – Appearance, Character, and Quality of the Community The goals of this Strategic Plan Priority focus on enhancing the City’s image while preserving the rich heritage of Torrance. It also emphasizes the shared responsibility of all stakeholders to ensure the highest standards of a well-designed and thoughtfully maintained City are continuously met.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Achieve and maintain a distinctive appearance that reflects the character and high standards of the entire community and its unique neighborhoods.

City Manager's Office/
Community Development/
Community Services/
Public Works

2. Achieve a community design that exemplifies balanced land usage in a manner that recognizes and optimizes the changing nature of retail, industry, employment, an age diverse
population and other factors that impact land uses.

City Manager's Office/
Community Development

3. Preserve and celebrate the heritage of historic sites throughout the City. Community Development
Goals
47 38
Strategic Plan Priority 2 – Communication and Civic Involvement The goals of this Strategic Plan Priority emphasize the importance of clear and transparent communication to facilitate community participation in civic affairs. The collaboration of government and citizens requires active involvement through a variety of accessible sources.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Utilize a full range of information resources to share local issues with the community
City Clerk's Office/
City Manager's Office

2. Engage citizens in all aspects of civic decision-making City Clerk's Office/
City Manager's Office/
Community Services

3. Strengthen the relationship between the City, residents, and community-based organizations with emphasis on
measurable outreach to under-served populations
City Manager's Office

4. Promote opportunities for civic and public/private
collaboration and partnerships City Manager's Office
Goals
48 39
Strategic Plan Priority 3 – Economic Development
The goals of this Strategic Plan Priority encompass a full range of economic activity, including business retention and attracting new businesses to the City. A growing component for maintaining a balanced economic base includes knowledge of global commerce, emerging markets, rapidly changing technology, and political trends.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Enhance regional, national, and international market development City Manager's Office

2. Attract and retain businesses City Manager's Office/ Community Development

3. Provide a supportive environment for entrepreneurial endeavors
City Manager's Office/
Community Development

4. Maintain a residential and commercial/industrial balance that supports the economic needs of the community
City Manager's Office/
Community Development

5. Promote economic health through education and
training City Manager's Office

6. Promote economic disaster preparedness and
recovery
City Manager's Office/
Community Development
Goals
49 40
Strategic Plan Priority 4 – Education, Diversity, and Enrichment The goals of this Strategic Plan Priority recognize the importance of acknowledging the City’s highly diverse population for addressing the unique needs of the community in a variety of ways.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Strengthen the commitment for collaboration between the City and Torrance Unified School District (TUSD)
City Manager's Office/
Community Services/
P
olice

2. Expand the educational opportunities for development of the individual potential of youth, adults, and seniors of all abilities Community Services

3. Encourage and embrace benefits of a diverse and inclusive community
City Clerk's Office/
City Manager's Office/
C
ommunity Services/
Human Resources

4. Establish the City as a center of culture Community Services/ General Services

5. Strive to be a leader in the creation of current and relevant recreational opportunities that meet the needs of all citizens Community Services

6. Strengthen and develop the Youth Development Programs Community Services

7. Promote public services through volunteer opportunities City Manager's Office Goals
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Strategic Plan Priority 5 – Housing
The goals of this Strategic Plan Priority address the issue of homelessness and the increasing need for affordable housing. With this priority, attention is focused on developing solutions for housing - related issues with care and consideration.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Promote a diversity of housing types and affordability levels to meet the needs of a wide range of Torrance citizens Community Development

2. Take a holistic approach to address homelessness in the City acknowledging and understanding that homelessness is a
complex issue with multiple causes and that there is no one- size-fits-all solution
City Manager's Office

3. Preserve and protect the integrity of Torrance’s existing single- family neighborhoods while accommodating future housing needs
Community Development

4. Ensure the Housing Element and federal, state, and local legislation reflect the values of Torrance to the greatest extent possible
Community Development
Goals
51 42
Strategic Plan Priority 6 – Infrastructure
The goals of this Strategic Plan Priority focus on an efficiently functioning, well -maintained infrastructure that supports our present and future needs. This is a vital component for the continued well-being of residential and business communities as well as the overall economic health of the City.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Communicate and coordinate with end-users and
stakeholders when prioritizing and designing infrastructure projects
City Manager's Office/
Public Works

2. Develop, maintain, and protect an efficiently functioning infrastructure Public Works

3. Establish Torrance as a premier 21st century City through the dynamic and secure usage of digital technologies
Communications &
Information Technology

4. Establish an infrastructure road map that encourages an ecosystem for technology development and implementation Communications &
Information Technology/
Public Works
Goals
52 43
Strategic Plan Priority 7 – Mobility
The goals of this Strategic Plan Priority emphasize congestion management, protection of residential neighborhoods from the impacts intrusive traffic patterns, and exploration of emerging public transportation alternatives. The safe, convenient, and efficient mobility of people and goods is critical for residents’ quality of life and vitality of the local economy.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Maximize the safe, convenient, and efficient movement of people, goods, and traffic Public Works/Transit

2. Balance land use practices for mobility management Community Development/ Public Works/Transit

3. Provide a full range of mobility options and infrastructure Public Works/Transit Goals
53 44
Strategic Plan Priority 8 – Reliable Revenue Base and Effective Asset Management
The goals of this Strategic Plan Priority address the importance of monitoring fiscal conditions both within the City and beyond. This will inform policy decision -making and ensure that appropriate adjustments are made to maintain the financial health and stability of the City.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Employ a realistic, transparent, and conservative fiscal investment strategy City Treasurer's Office

2. Expand the City’s revenue base City Manager's Office/ Finance

3. Ensure effective land and property management programs for City-owned properties and buildings City Manager's Office

4. Maintain adequate funding and planning for ongoing
maintenance and replacement of City’s physical assets General Services

5. Monitor and review all fiscal matters Finance

6. Pursue vigorous interaction with County, State, Federal and other governmental agencies regarding revenue decisions and fiscal impacts
City Manager's Office
Goals
54 45
Strategic Plan Priority 9 – Responsive, Accountable, and Cost-Effective Government
The goals of this Strategic Plan Priority recognize the importance of the City’s responsibility to manage in a manner which seeks out and responds to community input and is held accountable for the efficient delivery of services.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Emphasize city governance accountability and responsiveness City Manager's Office/

2. Delivery high quality services in a timely and cost effective manner
Communications &
Information Technology/
C
ity Manager's Office/
Finance

3. Provide outstanding communication with the community City Manager's Office

4. Provide basic civic literacy resources for ease of process navigation
Communications &
Information Technology/
C
ity Manager's Office

5. Maintain a skilled, knowledgeable, creative, and well-trained workforce.

City Manager's Office/
Human Resources

6. Continue organizational development for each department and division. City Manager's Office
Goals
55 46
Strategic Plan Priority 10 – Safe, Secure, and Equitable Community The goals of this Strategic Plan Priority focus on all aspects of public safety, including crime, environmental hazards, and disaster preparedness, as well as ensuring information is readily available and communicated to the community.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Promote a safe community environment Community Development/ Fire/Police/Public Works

2. Protect persons and property from criminal activity Police

3. Promote a safe and secure community for youth Police

4. Provide up-to-date information and educational opportunities that encourage safety and crime prevention Police

5. Promote and establish a community that is prepared for natural or human made disasters, pandemics, or
c
ommunicable diseases, cyber security incidents or other emergencies that affect the community
City Manager's Office/Fire

6. Provide a safe an supportive environment for the economic vitality of the business community City Manager's Office/Police

7. Mitigate public health and safety risks from the use of Hydrofluoric/Modified Hydrofluoric Acid (HF/MHF) in the a
lkylation process at Torrance Refinery
Fire
Goals
56 47
Strategic Plan Priority 11 – Stewardship of the Environment The goals of this Strategic Plan Priority address the ongoing concerns regarding climate change and the need for the City to be aware of, and proactively respond to, a wide variety of issues concerning the physical environment on the local, national, and global scale.

The table below outlines each goal under this Strategic Plan Priority and the respective departments associated with each goal.

Department(s)

1. Establish Torrance as a leader in environmental responsibility and sustainability
City Manager's Office/
Community Development/
General Services/
Public Works

2. Actively inform, educate, and motivate the community regarding the value and benefit of environmental stewardship Community Development/
Public Works

3. Aggressively plan and act to enable all city stakeholders to mitigate and adapt to the climate change and ecological crisis City Manager's Office/
Community Development/
Community Services/
Public Works

4. Create and promote sustainable/green practices for use in daily life
Community Development/
Public Works

5. Strive for water reliability through the preservation and conservation of water resources
Community Development/
Public Works

6. Preserve and protect the natural environment and the benefits provided by well-functioning ecosystems
Community Development/
Community Services/
Fire/Public Works

7. Create a positive environment for business and industries to adopt sustainable/green practices
City Manager's Office/
Community Development/
Goals
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Strategic Plan Performance Indicators by Department
On an annual basis, the Finance and Governmental Operations Committee and City Council meet to provide direction on the budget initiatives, and this year as part of the Budget Development process, the City developed new key performance indicators (KPI) and received City Council approval on December 17, 2024.

These newly developed KPIs provide improved objective benchmarks based on the goals of each Department and at least one KPI per Department is in accordance with their assigned Strategic Plan priorities and goals. Each Department has at least one sub -goal in the Strategic Plan, which in turn links Department strategic goal performance to an ongoing and measurable objective.

The City will monitor the KPIs on a quarterly basis and provide the updates to the public in an online KPI Dashboard, which will be made available in FY25-26.

In the tables below, each department has listed their approved KPIs, their KPI benchmarks, and actuals from January 1, 2025, to March 31, 2025.

Strategic Plan
Sub-Goals(s) Department Key Performance Indicator (KPI) Target Value (Quarterly)
Value as of
March 31, 2025
N/A City Attorney % of civil litigation cases received and closed within same fiscal year 70% 33% (15 Open/5 Closed)
N/A City Attorney % of work requests received and closed within 90 days 60% 66% (258 Open/170
Closed)
N/A City Attorney Total number of training opportunities provided by the City Attorney's Office 1 1
N/A City Manager Percentage of Strategic Plan Subgoals Off Track <=5% 0%

5.2.1 City Manager Number change of unhoused individuals within the City <=0 * 0

11.7.4 City Manager Viewer Retention Rate
>=70% watch 15
seconds of
content

69.37%

3.2.2 Community
Development
Number of revitalized and redeveloped commercial
properties through the City's Commercial Facade
Improvement Program.
3 0

3.6.2 Community
Development Percentage of Code Compliance
Achieve 85% code
compliance
through the
closing of code
enforcement
cases
81%

3.6.2 Community
Development Customer Satisfaction Rate at Permit Center Achieve 90%
customer
satisfaction rate
and 20%
reduction in wait
times
91% Customer
Satisfaction Rate at
Satisfactory or higher
16% Reduction in Wait
Times
58 49

Strategic Plan
Sub-Goals(s) Department Key Performance Indicator (KPI) Target Value (Quarterly)
Value as of
March 31, 2025

1.1.7 Community Services Number of public art pieces installed 2 6

4.4.3 Community Services Number of library visitors 1,125 3,656

4.5.1 Community Services Average enrollment rates of offered classes 75% 75% N/A Community Services Percentage of natural urban ecosystem and new green spaces and/or open spaces enhanced 1 4

1.1.4 Community Services Number of days to close a Community Services Service Requests 5 days 5 days

9.2.3 Finance Percentage of internal audit recommendations implemented 100% 100%

9.2.6 Finance
Total percentage of cooperative purchase
agreements as a percentage of total purchase
orders
33% 21%
N/A Finance Average number of days to complete requested change orders 3 days 10.4

8.5.1 Finance Number of audit findings from 3rd party
independent audits <=1 3

8.5.2, 8.5.3 Finance Number of public engagement meetings >3 per year 2

8.2.3 Finance Net change of new business added to the City Net positive 560 N/A Finance Average number of days to complete a Budget Transfer 3 days 6.2

10.5.4 Fire Performance of 1st unit on-scene for all Fire incidents at the 90th percentile 6 min 24 secs 9 min 34 secs

10.5.4 Fire Performance of 1st unit on-scene for all EMS incidents at the 90th percentile. 6 min 4 secs 7 min 30 secs

10.1.1 Fire Percentage of initiated (performed) state-mandated inspection annually 100% 100%
N/A Fire Percentage of planned training at TUSD campuses that received fire and life safety training 100% 100%

8.4 General Services Average time elapsed from submittal of facility work orders until project completed. <=3 days 2.5 days

11.1 General Services Number of gallons reduced through purchases of alternative fuel (green) vehicles
Reduce fuel by
5,000 – 7,000
gallons annually.

Fuel increased 15,000
N/A General Services Average time elapsed from Dept. approval of Central Services work orders until project completed. <=3 days Less than 3 days N/A General Services Average time elapsed from submittal of graffiti work orders until abatement completed. <=2 days Less than 24 hrs.

9.5.2 Human Resources Percentage of employees who attend the Benefits Fair
Annual
participation
increase of 10%
35%

9.5 Human Resources Number of days to hire (Safety/Non-Safety) 90 days 182 / 92

9.5 Human Resources Average number of days to complete processing PAFs per pay period 3 days 4

9.5 Human Resources Average number of days to complete NeoGov Req 2 days 1

9.5.2 Human Resources Average number of days to enroll employees in benefits 30 days 22
59 50

*denotes annual target and scoring is year-to-date

Strategic Plan
Sub-Goals(s) Department Key Performance Indicator (KPI) Target Value (Quarterly)
Value as of
March 31, 2025
N/A Information
Technology
Average amount of time to complete service
requests
Achieve a 2-hour
target in
responding to
critical service
requests for a

98.5% service
level

96.70%
N/A Information
Technology Percentage of unplanned maintenance incidents Achieve less than
10% of unplanned
incidents
22%
N/A Information
Technology
Percentage of Cyber Security Incidents investigated
and closed
100% of incidents
investigated and
closed
100%
N/A Information
Technology Percentage of Cyber Security threats prevented 100% of threats prevented 100%

9.4.2 Information
Technology
Percentage of employees who complete
cybersecurity training
100% employees
complete the
training
95%

10.2.1,10.2.2 Police Department Average Police Response Time to Emergency Priority One Calls
Improve response
times by 10%* 4.8%

10.2.1, 10.2.3,

10.2.5 Police Department Increase Hiring of Police and Professional Staff Reduce vacancies by 50%* 6.8%

10.2.1, 10.2.4,

10.4.1 Police Department Felony Charges Filed Increase filings by over 5%* -30.8%
N/A Police Department Number of community engagement
meetings/events/forums 12 17

7.3.1 Public Works City's Pavement Condition Index (PCI) rating Sustain a
minimum PCI
rating of 70
75 11.5.1 Public Works Percent of local water supply sold 7 to 10% annual
increase of local
water sold
through 2029,
with an overall
goal of 70%
Local water supply for 1st
quarter of 2025 is at 38%
Local water supply for 1st
quarter of 2024 was at
31%

11.3.6 Public Works Number of trees planted
Plant 1,750 new
trees each year
through June
2027, for a total of
7,000 new trees
885

7.1.2 Transit Percent of Bus On-time Performance 80% 81.4%

7.1.2 , 7.3.2 , 7.3.4
, 7.3.6 Transit Total Transit Ridership (All Bus, TCTP and future Micro Transit) by annual passenger trips
2,000,000
passenger trips 592,149
N/A Transit Average vehicle revenue miles between mechanical failures 6,000 miles 35,913 miles
N/A Transit Percentage value of fare box recovery 2% 3.7% 60 51
Operational Efficiencies
As part of the FY25–27 budget planning process, the City Manager’s Office continued to emphasize a comprehensive review of citywide operations. The Budget Review Team —made up of the City Manager, Department Heads, Managers, Supervisors, and Budget Analysis Team members from each department—met twice, in November 2024 and Ap ril 2025. These meetings covered the budget timeline, City Council priorities, status of labor relations, staffing needs, operational efficiencies, capital project planning, and multi-year financial projections. The discu ssions helped lay the groundwork for the upcoming budget cycle.

The following topics are related to operational efficiencies and remain open as they require further research and evaluation for determining a recommended path of implementation, including:

• Analyze branch library operations to determine if different service delivery methods are available in light of Civic Center Master Plan and significant backlog of capital investment required citywide; and
• Analyze Fire headquarters and fire stations citywide, to determine alternative sites for consideration in the City (southeast) and its impact on staffing and land management.

Areas of Focus
There are multiple areas that staff are tracking closely that will require attention in the near term and over the coming budget cycles. These will be a topic of focus highlighted during First Quarter and Mid- Year Budget Review reports and continue to be monitored going forward.

Self-Insurance Fund
The City’s Self -Insurance Fund covers expenditures in the following areas: non -litigated claims, liability claims and associated settlements, workers’ compensation cases, and unemployment Insurance payments. It is funded by contributions from the General Fund, Enterprise Funds, and Internal Service Funds. This fund has accumulated a negative fund balance over the years, which has been gradually improving over the last four years. As of June 30, 2024, the fund ’s net position is ( - $52.1) million. This is driven by existing outstanding liabilities in workers’ compensation of $ 52.7 million and Liability Claims of $14.8 million. As of June 30, 2024, the cash balance in this fund stands at only $21.5 million. Given the trends, the FY25 -26 and FY26-27 budget includes contributions from all departments to maintain a balanced budget for the next 10 years. Additional one -time transfers will be recommended when budget savings are available to help address this shortfall and rebuild its balance to a positive status.

61 52
Cash Balances by Fund
The City continues its focus on improving the General Fund’s cash balance. As the City improves its General Fund Unrestricted Fund Balance and Liquidity ranking in the Financial Key Performance Indicator section of this document, this will improve the Cash Balances by Fund concern raised in prior reports. This effort will take multiple years to resolve through the monitoring of these financial KPIs each year.

Labor Trends
In recent years the City has experienced one of the tightest labor market of modern times. During FY20-21 and FY21 -22, the City held positions vacant to weather the COVID -19 pandemic. With the impacts of the pandemic behind the City, the passage of Measure SST allowing public safety positions to remain whole, and the multi-year labor agreements recently approved, the City is working hard to attract and retain high quality talent. It is proving to be a challenging time to fill positions and will be the focus for months to come to stabilize the workforce.

As of March 202 5, 24 8 employees are eligible for retirement ( based on 55 years of age; Employee Classification A), as compared to 244 as of March 2024. As the workforce ages, City staff will continue to monitor retirement eligibility for proper succession planning. Beginning in FY21 -22, the City sustained a significant spike in retirements and voluntary resignations, which has since begun to wane beginning in FY23 -24. The most commonly cited reasons for recent departures have been better salaries and benefits and flexibility. While the trend has started to improve, it still remains an area of focus, and employee retention will continue to be a challenge and will be monitored closely.

Status of Labor Agreements
An important focus was placed on attracting and retaining necessary talent to combat departures. By securing multi -year contract agreements, the City benefits from long -term cost predictability, enhanced stability for employees, and more accurate budget pl anning. The City’s labor agreements with the various union groups follow different terms. The Torrance Fire Fighters Association settled with expiration dates of December 2027 and Torrance Police Officers Association and Torrance Police Commanders Association with December 2025. The City’s Miscellaneous labor groups expire June FY20-21 FY21-22 FY22-23 F Y23-24
9 Months of
FY24-25
Retirements 57 72 59 33 36
V
oluntary Resignations 42 133 121 96 61
Departures or Death 11 13 21 18 15
Total Separations 110 218 201 147 112
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2028. For reference, it is estimated that it costs the city, across all Funds, approximately $2. 2 million for every 1% negotiated wage increase for all unions/bargaining units.

Aging Buildings and Infrastructure
The City of Torrance owns and operates over $500 million worth of buildings, public facilities, and infrastructure (net of accumulated depreciation) . With every year passing these buildings age and deteriorate, many of which are still in their original condition. The City’s capital assets have either reached or exceeded their half-life mark, requiring heavy maintenance and upgrade. In FY23-24, the City contracted a firm to index all city -owned facilities, and the firm issued a comprehensive facility assessment report cover ing items such as seismic upgrades, HVAC, plumbing, electrical, various infrastructure items, and other interior and exterior elements such as windows, doors, paint, flooring and roofs, and the report provided rating for conditions for each building. This ass essment report, along with the feedback from the General Services department and Community Services department, was utilized as a basis to develop the Capital Improvement Plan for FY25 -26 to FY 29-30. The next phase of refining required investment through the Capital Improvement Plan will be achieved through a Parks Master Plan funded in FY25 -26 that will further inform the necessary capital investments required in our city parks after engaging with the community. Additional information on this index study can be found in the Capital Improvement Plan section.

Pension/OPEB Benefits Liability Management
In an effort to manage rising pension costs, the City took action in October 2020. They used $338.4 million from the 2020 Lease Revenue Bonds to pay down a portion of their unfunded liability. This reduced the peak of their future payments and provided financial relief. At that time, the City had an unfunded liability of $497 million. This additional payment, along with the city's planned contributions for fiscal year 2021, was expected to increase the City's CalPERS funded level from about 71.4% to 92%. On top of this payment, CalPERS earned a 21.3% return on investments over the course of FY 2020-21, which set the funded status at 104%.

It is important to note that this high return triggered a reduction in the CalPERS discount rate from

7.0% to 6.8%. Despite this reduction, the impact of the returns outweighed the negative effect of the discount rate in future years. During fiscal years ending 2022 through 2024, CalPERS investment returns fluctuated between losses and positive returns, with the ultimate impact reducing the funding status and increas ing future annual Unfunded Actuarial Liability (UAL) payment. As a consequence, the amount of money needed to cover future pension obligations, known as UAL, has increased. This shortfall will need to be paid off over the next 20 years.

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The UAL payment increases from $1 3 million in FY 2025-26 to $33 million in FY 203 4-35. The city has been planning for these increased costs by incorporating them into its 10 -year financial forecast , which includes the utilization of savings from the CEPPT Section 115 Fund that the City funds on an annual basis. The City sees its first drawdown in the FY25-26 budget, in the amount of $7.3 million.

The City is planning to allocate $ 2.3 million in the fiscal year 2025 -26 into the Section 115 Trust. The exact amount contributed will be reassessed each year based on available funds and projected CalPERS costs. The City will always reserve at least 20% of the savings from the 2020 Lease Revenue Bonds towards this purpose. These funds are expected to be utilized within the next 10 years to help manage the anticipated growth in pension costs, which have been impacted by recent underperformance from CalPERS. For FY25-26, the City’s CalPERS and CalPERS related debt costs are estimated to be 17.5% of the City’s General Fund -Operating Fund’s budget. The City continues to monitor CalPERS performance, projecting its effects up to 30 years and incorporating these amounts into our 10-year projection models.

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Financial Key Performance Indicators
The City of Torrance monitors financial key performance indicators (KPI) to objectively benchmark the financial performance of the City and align its budget with Strategic Plan priorities, including Reliable Revenue Base & Effective Asset Management, and Responsive, Accountable & Cost-Effective Government. While many of the key performance indicators included in this budget document also align with metrics previously utilized by the California State Auditor and currently recommended by the Government Financ e Officers Association , others are used to help round out the City’s finances overall. Using the City’s audited Annual Comprehensive Financial Report (“ACFR”) as the primary source, the City’s key performance indicators and corresponding grading criteria are as follows:

Below provides an analysis of the City’s performance, based on the grading criteria using the last five years of data:

Financial Key Performance Indicators High Risk Moderate Risk Lo w Risk Revenue Trends < 0% 0% - 2% 2% or >
Net True Operating Surplus/(Deficit) -$2M or > deficit -$2M to +$2M + $2M General Fund Unrestricted Fund Balance < 15% 15% - 20% 20%+ Liquidity < 100% 100% - 150% 150%+
Pension Obligations > 100% 50% - 100% < 50%
Debt Burden > 100% 40% - 100% < 40%
P
ension Funded Status < 70% 70% - 80% 80%+
OPEB Funded Status < 70% 70% - 80% 80%+
Self Insurance Funded Status < 70% 70% - 80% 80%+
Capital Asset Condition < 0% 0% - 2% 2% or >
Grading Criteria
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Revenue Trends
This key performance indicator monitors the year -over-year changes in Operating Revenues and Transfers-In for the City’s General Fund, controlled for one -time sources and inflation. The City uses the June Consumer Price Index for all Urban Consumers (CPI -U) to control for inflation factors to accurately capture recurring revenue growth. In FY19-20, the City’s General Fund revenues underperformed and did not meet the 2% year -over-year growth goal. However, as the economy rebounded from the COVID -19 pandemic, the City’s revenues experienced 4.4% growth in FY20 -21, continuing to grow until a peak of 14. 3% in FY22 -23, shifting the City’s position to the low -risk category for all those years. Such levels of growth are not typical, and represent recovery, and a pent- up demand for goods, services, and entertainment that followed the “stay-at-home” orders from the pandemic. In FY23-24, in response to the post-pandemic spike in inflation, the Federal Reserve raised the federal funds rate by 0.25 basis points, incentivizing saving rather than spending . As of June 30, 2024, the City’s Revenue Trends KPI fell to th e Moderate-Risk category and is cautious about future headwinds and uncertainty around the impact that newly implemented international tariffs may have on the local economy.

Current Status: Moderate

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Net True Operating Surplus/(Deficit)
The Net True Operating Surplus/Deficit) KPI monitors the result of all recurring revenues against recurring expenditures in the General Fund . The City controls for one -time activities to accurately monitor recurring outcomes and identify any structural imbalances each year.

After controlling for one -time activities, the City’s General Fund was operating at a structural loss between FY19-20 and FY20-21. This underperformance was exacerbated by the onset of the COVID-19 pandemic which adversely affected financial performance in FY19 -20. As shown below, the City’s General Fund revenues experienced marginal improvement in FY20 -21 followed by st ructural operating surplus every year since.

Net True Operating Surplus / (Deficit) FY19-20 FY20-21 FY21-22 F Y22-23 FY23-24 Net Operating Revenues & Transfers In - thousands 188,597 204,735 2 34,839 275,131 287,795 Net Operating Expenditures & Transfers Out - thousands 205,498 216,226 220,264 259,046 252,637 Net Recurring Surplus/(Deficit) - thousands -16,901 -11,492 14,575 16,085 35,159 Goal 0 0 0 0 0
7,4855-Year Average Change
Current Status: Low Risk

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General Fund Unrestricted Fund Balance
The General Fund Unrestricted Fund Balance KPI monitors the Assigned and Unassigned Fund Balance as a percentage of the General Fund’s Operating Expenditures and Transfers Out. The City controls for one-time activities in the Expenditures and Transfers classifications to accurately capture recurring outcomes and monitor the City’s unassigned fund balance each year.

As shown below, the City’s Unrestricted General Fund fund balance reached a record low in FY19 -20 due to the COVID -19 pandemic. Since that time , the City was able to significantly improve its fund balance status in FY20 -21 after receiving $22.8 million in one -time funds, and in FY21 -22, surpassed its goal of 20%. As of FY23-24, the City’s unrestricted balance stands at 34.2%.

General Fund Unrestricted Fund Balance FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 General Fund Unrestricted Fund Balance - thousands 6,079 26,401 50,210 69,269 86,434 Operating Expenditures & Transfers (net) - thousands 205,498 216,226 221,218 259,046 252,637 General Fund Unrestricted Fund Balance - % of Operating Expenditures & Transfers (net) 3.0% 12.2% 22.7% 26.7% 34.2% Goal 20.0% 20.0% 20.0% 20.0% 20.0%

19.8%5-Year Average
Current Status: Low Risk

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Liquidity
The Liquidity KPI monitors the City’s General Fund cash and investment balances relative to General Fund liabilities. The City utilizes this metric to determine how much cash is on hand to cover near - term liabilities and other General Fund activities.

Exacerbated by the onset of the COVID -19 pandemic, this metric was adversely affected in FY19 -20, while the indicator performed moderately in FY18 -19. However, the City was able to significantly improve its liquidity in FY20 -21 after receiving $22.8 million in one -time funds. In FY21 -22, the City surpassed its liquidity goal of 150% for the first time, which was partially due to receiving an additional $12.0 million in one-time funds. As shown below, the City continues to exceed its liquidity goal of 150% in FY23-24.

Liquidity FY19-20 FY20-21 FY21-22 FY22-23 FY23-24
General Fund Cash & Investments - thousands 623 11,550 32,150 44,339 66,829 General Fund Liabilities - thousands 18,319 9,131 10,545 9,695 11,025 General Fund Liquidity Ratio 3.4% 126.5% 304.9% 457.3% 606.1% Goal 150.0% 150.0% 150.0% 150.0% 150.0%
299.7%5-Year Average
Current Status: Low Risk
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Pension Obligations
The Pension Obligations KPI monitors the City’s total pension-related liabilities including CalPERS, PARS, or any other pension -related debt as a percentage of the City’s total revenues. The City uses this metric to monitor how much of its revenue stream is burdened by its outstanding pension-related liabilities. Since FY19-20, the City’s pension obligations as a percentage of citywide revenues have experienced a downward trend. The City’s score in this indicator improved significantly in FY21-22, a combined result of issuing the 2020 Lease Revenue Bonds to pay down a signif icant portion of the City’s Unfunded Actuarial Liability and a 21.3% CalPERS investment return. However, this indicator was adversely impacted by a 7.5% CalPERS investment loss in FY2 2-23. Despite these recent events, the City will remain diligent in strategically lowering this ratio to achieve the 50% goal.

Pension Obligations FY19-20 FY20-21 FY 21-22 FY22-23 FY23-24 Net Pension Liability/(Asset) - thousands 487,649 510,899 -65,133 229,370 250,457 Pension-Related Debt - thousands 0 0 347,500 340,085 332,070 Governmentwide Revenues - thousands 327,990 364,924 428,920 469,825 479,918 Net Pension Liability and Pension Related Debt as
Percent of Government-wide Revenue 148.7% 140.0% 65.8% 121.2% 121.4% Goal 50.0% 50.0% 50.0% 50.0% 50.0%
119.4%5-Year Average
Current Status: High Risk

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Debt Burden
The Debt Burden KPI monitors the City’s total long-term obligations, excluding all pension and OPEB- related debt, as a percentage of the City’s total revenues. The City uses this metric to determine how much of its revenue stream is burdened by its outstanding general debt-related obligations.

The City’s total long -term liability (excluding pensions and OPEB) as a percentage of citywide revenues has fluctuated between 40% and 43% since FY17-18. This indicator fell below the 40% goal in FY21 -22. This indicator continues to decrease, falling to 32.2% in FY23 -24. The City will remain focused on paying down its existing obligations to maintain the 40% threshold.

Debt Burden FY19-20 FY20-21 FY21-22 FY22-23 FY23-24
Long-Term Obligations (excluding pension debt) -
thousands 149,313 157,722 163,534 157,025 154,317
Governmentwide Revenues - thousands 327,990 364,924 428,920 469,825 479,918 Percent of Long-term obligations to Government-
wide Revenue - thousands 45.5% 43.2% 38.1% 33.4% 32.2%
Goal 40.0% 40.0% 40.0% 40.0% 40.0%

38.5%5-Year Average
Current Status: Low Risk

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Pension Funded Status
The Pension Funded Status KPI monitors the funding status of the City’s two pension plans, CalPERS and PARS, though the PARS pension plan is no longer offered to employees hired after January 2013 when the California Public Employees' Pension Reform Act (“PEPRA”) went into effect. This metric is used to determine the overall financial health of its pension plans and monitor funding needs for the future.

Although the City’s strives to maintain a fully funded pension system, the State Auditor provides the highest scoring for meeting an 80% threshold. To estimate future returns, CalPERS has implemented discount rate reductions and provided more reliable actu arial contribution amounts to anticipate annual outcomes more realistically. As a result, this has increased City contributions and lowered the City’s funded status. In FY20 -21, the City issued $349.5 million in bonds to pay down a significant portion of t he City’s Unfunded Actuarial Liability. Additionally, CalPERS experienced a 21.3% investment return in the same year, allowing the City to surpass 100% funded status in FY21 -22.

However, this indicator was adversely impacted by a 7.5% CalPERS investment loss in FY2 2-23, followed by modest 9.3% returns in FY23-24.

Pension (CalPERS & PARS) Funded Status FY19-20 FY20-21 FY21-22 FY 22-23 FY23-24 Fiduciary Net Position - thousands 1,166,458 1,194,336 1, 824,991 1,629,239 1,662,337 Total Pension Liability - thousands 1,654,107 1,705,235 1,759,858 1,858,609 1,912,794 Pension Funded Status 70.5% 70.0% 103.7% 87.7% 86.9%
Goal 80.0% 80.0% 80.0% 80.0% 80.0%

83.8%5-Year Average
Current Status: Low Risk

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OPEB Funded Status
The Other Postemployment Benefits (OPEB) Funded Status KPI monitors the City’s funding status of its postemployment benefits (outside of pension). This typically includes retiree medical costs , and this metric monitors the health of its OPEB trust fund to pay for future retiree medical costs. The City’s funds are currently held in the CalPERS Employers' Retiree Benefit Trust (“CERBT”) Fund.

The City’s OPEB funded status has improved since the CERBT account was established in FY15-16 with actuarially determined (net of pay as you go costs) contributions made each year. Although the City strives to maintain a fully funded post-employment benefits system, the State Auditor provides the highest scoring for meeting an 80% threshold. The City continues to make its annual payments as determined through regular actuarial reports and is expected to improve its funding status for this metric in future years. As such, it is important to continue sufficiently funding these contributions to stay on this path.

OPEB Funded Status FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Fiduciary Net Position - thousands 25,039 27,848 38,802 34,481 38,988 Total OPEB Liability - thousands 69,583 72,460 77,616 80,138 100,668 OPEB Funded Status 36.0% 38.4% 50.0% 43.0% 38.7%
Goal 80.0% 80.0% 80.0% 80.0% 80.0%

41.2%5-Year Average
Current Status: High Risk

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Self-Insurance Funded Status
The Self-Insurance Funded Status KPI monitors the City’s funding status of its Self -Insurance Fund, which pays for open litigation liabilities and workers compensation claims. The City uses this metric to monitor the financial health of the Self-Insurance Fund against outstanding claims.

Since FY17-18, the City’s Self-Insurance funded status has remained below 20%. Historically, the City operated on a pay -as-you-go basis when funding this internal service fund. The City strives to fund 100% of its open liabilities though the goal for this metric has been set to 80% for consistency with pension and OPEB thresholds. As the City continues to increase its contributions to the Self-Insurance Fund, the Self-Insurance Fund’s FY25-26 budget has stabilized and is anticipated to remain balanced for future years. However, given the low funded status and negative fund balance, additional one - time transfers will be recommended in the interim when budget savings are available to help address this shortfall.

Self-Insurance Funded Status FY19-20 FY20-21 FY 21-22 FY22-23 FY23-24 Self-Insurance Assets - thousands 4,822 12,743 15,159 15,724 21,757 Self-Insurance Liabilities - thousands 59,815 68,570 77,326 69,790 73,813 Self-Insurance Funded Status 8.1% 18.6% 19.6% 22.5% 29.5% Goal 80.0% 80.0% 80.0% 80.0% 80.0%g

19.7%5-Year Average
Current Status: High Risk

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Capital Asset Condition
The Capital Asset Condition KPI monitors the City’s investments in capital assets over time. The City uses this metric to determine the overall health of its assets and ensure that investments are made to properly maintain them.

The City’s change in total invested capital assets has generally increased each year. It is important to monitor this trend over time to ensure that the City does not experience a declining asset balance which would indicate accelerated deterioration of assets as they depreciate. As shown below, the change in net Capital Assets (net of depreciation) has been largely positive over the last five years. For the first time in FY23-24, the City has fallen to the Moderate Risk category, affirming that more capital investment is necessary. In FY23-24, the City completed a Facilities Index study, which identified over $200 million in needed capital investments. The City currently has $94.4 million dedicated to capital projects and is investing an additional $85.5 in FY25 -26 into capital improvements. The FY25-26 budget includes $300,000 to allow for a Parks Master Plan effort to be completed. This effort will provide the community the opportunity for input to shape the future of the City’s parks and help shed light on the cost implications.

Capital Asset Condition FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Citywide Capital Asset Value - thousands 956,310 977,471 1,013,034 1,055,059 1,081,495 Accumulated Depreciation - thousands -451,887 -462,557 -483,760 -506,488 -527,033 Citywide Capital Asset Value (net of depreciation) - thousands 504,423 514,914 529,274 548,571 554,462 Citywide Capital Asset Condition (amount remaining) 52.7% 52.7% 52.2% 52.0% 51.3% Change in Capital Asset Condition 2.6% 2.1% 2.8% 3.6% 1.1% Goal 2.0% 2.0% 2.0% 2.0% 2.0%

2.4%5-Year Average
Current Status: Moderate

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Economic Outlook
The City’s proposed FY25-26 operating budget was developed with consideration of both national and local economic trends. Staff have been monitoring economic indicators such as the federal funds rate, the Consumer Price Index, Real Gross Domestic Product, labor market trends , inventories to sales ratio, and consumer confidence.

Federal Funds Rate
The Federal Funds Rate is the benchmark borrowing rate largely determined by the U.S. Federal Reserve System (Fed) from which fixed income instrument, loan, mortgage, and credit card rates are based. Typically, a higher federal funds rate incentivizes saving while a lower rate incentivizes spending and borrowi ng. For city governments, a lower federal funds rate —coupled with a low inflation rate—could mean increased tax revenues from economic growth as well as more affordable borrowing for critical projects.

The Fed ’s preferred inflation measure is the Bureau of Economic Analysis’s (BEA) Personal Consumption Expenditures (PCE) price index, which captures inflation and reflects changes in consumer behavior. The CPE index is similar to the Bureau of Labor Statistics (BLS) Consumer Price Index for All Urban Consumers (CPI -U), as both measures of inflation, but differ in scope and calculation. The CPI is limited to urban households and out-of-pocket spending, while the PCE covers all households (urban and rural) and includes spending by employe rs and governments, providing a broader view of inflation. The Federal Reserve targets for an inflation rate of 2% , and as of February 2025, the PCE index is 2.5%.

The Fed significantly raised its target federal funds rate between March 2022 and July 2023, aiming to reduce post -pandemic inflation by incentivizing saving rather than spending. Since inflation successfully began to fall, the Fed maintained its 5.25% - 5.50% target rate until September 2024, a t which point it began to slightly lower the rate. The Fed has followed with two more rate cuts in November and December 2024 but has since maintained a 4.25% - 4.50% target rate. Presently, there is an evolving land scape of federal policy changes regarding trade, immigration, fiscal policy, and regulation. As a result, Fed Chair Jerome Powell notes that “we face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation.” The Fed will “wait for greater clarity before considering any adjustments to [their] policy stance.” The Fed’s three most recent target federal funds rate actions are summarized below:

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Federal Reserve Meeting Action Taken Target Fed Fund Rate December 19, 2024 -25 basis points 4.25% - 4.50%
November 8, 2024 -25 basis points 4.50% - 4.75%
September 19, 2024 - 50 basis points 4.75% - 5.00%

Consumer Price Index (Inflation)
The Consumer Price Index (CPI) tracks changes in the average prices of consumer goods and services.

Annualized percentage changes in CPI reflect a measure of inflation. The U.S. Federal Reserve System (Fed) has a target inflation rate of 2.0%. Inflation that is substantially higher or lower reflects unstable prices that make financial planning more difficult and often hinders economic growth.

The chart below shows inflation for the local region using CPI -U, CPI for All Urban Consumers. As shown below, inflation climbed to a peak of 8.6% in June 2022, but federal funds target rate increases helped move inflation down to 2.8% by September 2024. However, as of March 2025, CPI rose again to 3.0% . The Fed recognizes that “inflation remains somewhat elevated” and that “uncertainty around the economic outlook has increased.” Fed Chair Jerome Powell does note that if enacted, “tariffs are highly likely to generate at least a temporary rise in inflatio n,” but that the Fed’s “obligation is to keep longer -term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem.”

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Real Gross Domestic Product
Real GDP reflects the value of all goods and services produced by an economy each year controlled for inflation. Essentially, it measures a country's total economic output and is particularly useful for analyzing economic growth over time. According to the most recent data available from the U.S.

Bureau of Economic Analysis (released March 27, 2025), national real GDP is up by 2.7% in the third calendar quarter of 2024 compared to the same period last year, and it is up by 2.5% in the fourth calendar quart er compared to the same period last year. The latter increase is primarily due to increased consumer and government spending that is partly offset by decreased investment.

The increase in consumer spending reflected increases in both goods and services . According to the U.S. Bureau of Economic Analysis’ press release, the increase in goods were led by spending on information processing equipment and new light trucks, goods that could potentially be affected by the imposition of tariffs, and services growt h was led by hospital and nursing home services and outpatient services. State and local government spending was driven by increases in employee compensation, while defense spending drove federal government spending.

Source: Bureau of Economic Analysis

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According to the Spring 2025 UCLA Anderson Forecast, annualized projections currently anticipate a growth rate (Q4 to Q4 percentage change in real GDP) of 2.0% in 2025, 2.1% in 2026, and 2.7% in 2027.

Source: The UCLA Anderson Forecast for the Nation and California: Spring 2025 Report

Labor Market Trends
The unemployment rate indicates the percentage of people who are unemployed out of the total number of people working or actively seeking work. As of March 2025, the U.S. unemployment rate was 4.2%; California’s was 5. 3%; and Los Angeles (L.A.) County’s was 5.9%. The first quarter of 2025 saw the national unemployment rate slightly increase, although consistently within the 4.0% - 4.2% range, while the state and county have seen a slight decrease. The local unemployment rates for L.A.

County have seen some recent variance with some cities experiencing a decrease in the unemployment rate while others are experiencing an increase. Overall, the local unemployment rates are generally higher than what was experienced a year ago. The U.S. Department of Labor’s Employment Situation report for March 2025 highlighted that despite the little change in the unemployment rate, there were job gains in health care, social assistance, transportation, and warehousing along with employment increases in retail trade . The report also affirmed that federal government employment declined in March following the loss of 11,000 jobs in February. 79 70

Source: State of California, Employment Development Department

California, L.A. County, and Torrance have an unemployment rate higher than the national level.

However, Torrance remains at a lower rate than California, L.A. County, and comparable nearby cities.

The Employment Development Department’s labor force and un employment rate data release for March 2025 details Torrance having a 4.7% unemployment rate, which is a slight increase from the end of 2024.

Source: State of California, Employment Development Department

2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
National* 3.6% 3.7% 3.8% 3.8% 4.1% 3.7% 4.1% 4.2%
California* 4.5% 4.6% 4.9% 5.3% 5.2% 5.3% 5.5% 5.3%
Los Angeles County* 4.9% 5.0% 5.0% 5.4% 5.3% 6.0% 6.0% 5.9% Carson 4.7% 5.3% 4.9% 5.3% 5.9% 6.0% 5.5% 5.3%
Gardena 4.8% 5.4% 4.7% 4.8% 5.7% 6.1% 5.6% 5.2%
Glendale 4.7% 5.7% 4.9% 5.0% 5.7% 5.8% 5.6% 5.7%
Hawthorne 4.8% 5.3% 4.7% 5.2% 5.7% 5.8% 5.6% 5.4%
Inglewood 5.3% 6.1% 5.5% 5.9% 6.8% 7.1% 6.3% 5.8%
Santa Monica 5.1% 5.9% 5.0% 5.4% 5.8% 5.8% 5.6% 5.9%
Torrance 3.8% 4.3% 3.8% 4.2% 4.9% 4.9% 4.5% 4.7%
Local Unemployment Rate Trends
2023 2024
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Inventories to Sales Ratio
The Inventory to Sales Ratio metric measures the amount of inventory being carried compared to the number of sales orders being fulfilled. Business inventories spiked in the peak of the COVID -19 pandemic at 1.74 briefly when the economy came to an immediate halt. As the economy partially re- opened in 2021 and business resumed, the nation experienced a significant spike in demand and economic activity as restrictions continued to be lowered and interest rates dropped. This in turn placed great strain on the overall supply chain. The inventories to sales ratio hit a low of 1.25 in October 2021, which has had an impact on price of goods and overall inflation rates. Since that time, the balance has improved and begun to return to pre -pandemic levels as of the pe riod ending February 2025 at 1.35. From an economist’s perspective, an upward trend reflects a deceleration of sales, or an increase in inventory on hand. This ratio is lower than the 5-year pre-pandemic average (2015-2019) of 1.40 and there has been a slight general decrease in the past few months.

Source: Federal Reserve Economic Data

Consumer Confidence Index
Consumer confidence index (“CCI”) is a critical driver of the U.S. and local economy which measures consumer confidence levels regarding their financial situation, sentiment about the general economic situation, unemployment, and capability of savings . According to the Conference Board Consumer Confidence Index survey, the CCI decreased in March 2025 to 92.9. 81 72

Source: Conference Board Consumer Confidence Index Survey

“Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022,” said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. “Of the Index’s five components, only consumers’ assessment of present labor market conditions improved, albeit slightly. Views of current business conditions have weakened to close to neutral. Consumers’ expectations were especially gloomy, with pessimism about future business co nditions deepening and confidence about future employment prospects falling to a 12 -year low. Meanwhile, consumers’ optimism about future income —which had held up quite strongly in the past few months—largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations.”

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REVENUES
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Revenues
Citywide Revenue Summary by Fund

The citywide revenue budget is proposed to increase by $28.3 million (+5.2%) in FY25-26, and an increase of $22.8 million (+4.0%) is anticipated for FY26 -27. For FY25 -26, the increase of $28.3 million is driven by the following factors:
• The General Fund -Operating Fund is projected to increase by $ 17.6 million (+6.1%), primarily due to Operating Transfers-In of $7.3 million from the CEPPT Fund, $1.3 million from the Measure SST Fund and $1.1 million from the Airport Fund ; a $4.4 million anticipated increase in Licenses, Fees and Permits ; and a $1.9 million expected rise in investment earnings.
• The General Fund -Measure SST Fund is proposed to increase by $ 1.0 million (+4.0%), primarily due to a rise in the t axes classification. The FY25-26 budget has been adjusted to reflect current consumer spending trends.
• The General Fund -Restricted Fund is proposed to decrease by $ 5.5 million (-55.6%). This is due to decreased transfers of $ 7.1 million from the General Fund Operating Fund to the CEPPT Fund resulting from increased UAL payments required in FY25-26, offset by a $1.7 million increase in the Use of Money and Property classification , attributable to increased investment earnings.
• The Airport Fund is proposed to increase by $2.7 million (+14.7%), mainly due to an increase in rent from ground lease activity totaling $2.0 million.

Fund Name
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
General Fund - Operating Fund 279,771,399 278,113,129 287,478,655 305,105,660 316,386,588 17,627,005 6.1% 11,280,928 3.7% General Fund - Measure SST 18,064,595 25,577,251 25,167,266 26,183,606 26,948,494 1,016,340 4.0% 764,888 2.9% General Fund - Restricted 2,452,281 24,831,322 9,958,325 4,416,579 4,242,582 (5,541,746) -55.6% (173,997) -3.9% General Fund - Assigned 2,195,940 10,852,404 8,282,505 7,396,091 7,396,091 (886,414) -10.7% - 0.0% AQMD Fund 198,639 206,313 208,296 211,134 217,468 2,838 1.4% 6,334 3.0% Debt Service Fund 22,099,220 22,593,694 23,107,338 23,625,753 24,154,567 518,415 2.2% 528,814 2.2% Meadow Park Parking Lot District 152,865 50,248 40,064 41,205 41,205 1,141 2.8% - 0.0% Low Mod Fund 1,429,993 168,411 40,450 - 228,623 (40,450) -100.0% 228,623 0.0% Section 8 Housing 6,823,779 8,312,839 8,989,500 9,345,309 10,090,382 355,809 4.0% 745,073 8.0% Street Lighting Fund 1,710,390 1,846,644 1,866,272 1,912,828 1,912,828 46,556 2.5% - 0.0% Traffic Safety Fund - 82,366 180,000 70,950 73,080 (109,050) -60.6% 2,130 3.0% Vanpool Fund 240,547 210,075 245,871 261,749 264,205 15,878 6.5% 2,456 0.9% Airport Fund 23,886,882 20,292,508 18,342,326 21,044,124 21,607,369 2,701,798 14.7% 563,245 2.7% Sanitation Fund 16,649,110 26,869,750 18,918,815 18,859,697 20,287,133 (59,118) -0.3% 1,427,436 7.6% Sewer Fund 6,569,642 8,050,200 8,616,082 8,201,108 8,447,146 (414,974) -4.8% 246,038 3.0% Transit Fund 35,962,667 32,367,583 35,233,572 38,508,429 39,441,739 3,274,857 9.3% 933,310 2.4% Water Fund 55,377,876 56,262,311 54,803,501 61,768,887 65,894,566 6,965,386 12.7% 4,125,679 6.7% Fleet Services Fund 25,854,359 13,976,329 13,339,999 15,269,616 15,728,552 1,929,617 14.5% 458,936 3.0% Self-Insurance Fund 24,309,720 23,070,808 23,659,000 24,178,667 25,778,667 519,667 2.2% 1,600,000 6.6% Redevelopment Agency Fund 3,597,669 4,318,282 3,988,268 4,339,486 4,351,214 351,218 8.8% 11,728 0.3% Total Revenues 527,347,573$ 558,052,467$ 542,466,105$ 570,740,878$ 593,492,499$ 28,274,773$ 5.2% 22,751,621$ 4.0% 84 74
• The Water Fund is proposed to increase by $7.0 million (+12.7%), driven by both increased demand/water usage, and a series of annual water fee rate increases approved by Council through the Proposition 218 process. Rates rose by 6.5% on January 1, 2025, and are scheduled to increase by an additional 6.5% on January 1, 2026, followed by 6.0% increases on January 1, 2027, 2028, and 2029.
• The Transit Fund is proposed to increase by $3.3 million (+9.3%), primarily due to additional Intergovernmental revenues of $ 1.5 million for Line 1 and Line 6 service expansion ; a $ 1.0 million increase in Proposition A Operating Transfers In; and a $0.8 million increase in Charges for Services driven by increased ridership revenues.
• The Fleet Services Fund is proposed to increase by $1.9 million (+14.5%), ensuring the cost of parts, fuel, and labor are covered for all necessary vehicle maintenance and repair .

Increased charges also include contributions made towards future vehicle replacement.

Citywide Revenue Summary by Classification

The primary drivers for the projected increase of $28.3 million (+5.2%) in FY25-26 are as follows:
• The Taxes classification is proposed to increase by $1.9 million (+0.8%). This is mainly due to an anticipated increase from property taxes totaling $4. 5 million, partially offset by a decrease in utility users’ tax of $2.7 million.
• The Licenses, Fees and Permits classification is proposed to increase by $ 3.8 million (+20.5%) due to a $2.7 million increase in refuse franchise fees, based on a waste hauler fee study nearing completion. Additional increases of $0.6 million, $0.2 million, and $0.1 million are expected from development -related fees, water franchise fees, and sanita tion franchise fees, respectively.
• The Use of Money and Property classification is proposed to increase by $ 6.0 million (+10.3%) driven by projected growth in investment earnings resulting from a higher federal funds rate and increased cash balances, as well as anticipated increases in rental revenue within the Airport Fund.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Taxes 214,852,792 224, 088,526 233,514,935 235,400,519 242,106,736 1,885,584 0.8% 6,706,217 2.8% Licenses, Fees and Permits 18,091,998 19,033,128 18,414,731 22,195,580 22,890,060 3,780,849 20.5% 694,480 3.1% Fines, Forfeitures and Penalties 676,656 810,647 822,774 1,341,040 1,381,280 518,266 63.0% 40,240 3.0% Use of Money and Property 54,884,436 62,858,371 58,166,651 64,133,499 66,726,551 5,966,848 10.3% 2,593,052 4.0% Intergovernmental 39,053,709 34,424,398 39,235,088 40,979,972 42,571,692 1,744,884 4.4% 1,591,720 3.9% Charges for Services 115,882,487 129,081,951 133,375,475 146,469,175 154,935,516 13,093,700 9.8% 8,466,341 5.8% Other Revenues 6,093,821 3,053,379 1,126,068 1,918,110 1,923,960 792,042 70.3% 5,850 0.3% Operating Transfers In 76,564,093 79,476,304 57,620,615 58,113,215 60,766,936 492,600 0.9% 2,653,721 4.6% Other Financing Sources 1,247,581 5,225,763 189,768 189,768 189,768 - 0.0% - 0.0% Total Revenues 527,347,573$ 558,052,467$ 542,466,105$ 570,740,878$ 593,492,499$ 28,274,773$ 5.2% 22,751,621$ 4.0% 85 75
• The Charges for Services classification is proposed to increase by $13.1 million (+9.8%) due to various changes across multiple funds. This increase is primarily driven by the Water Operations Fund of $6.6 million, Fleet Services Fund of $2. 5 million, Sanitation Operations Fund of $2.1 million, and the Transit Fund of $0.8 million. The increase s in the Water and Sanitation Operations Funds are related to the recent series of annual water and refuse rate adjustments approved by the Council through Prop 218 p rocess. The Fleet Services Fund increase is due to the implementation of flat rates for vehicle maintenance, fuel, labor, and parts, as well as non-vehicle maintenance activities such as rent and administrative services.

The Transit Fund increase is primarily driven by additional Transit Access Pass (TAP) revenue, revenue from Advertising on Shelters, and Passenger Cash Fares. • The Other Revenues classification is proposed to increase by $0.8 million (+70.3%), primarily due to a $1.1 million rise in reimbursements related to an ongoing legal matter within the Airport Fund. This increase is partially offset by a $0.2 million decrease in the General Fund-Operating Fund, to better align the budget with actuals.

General Fund-Operating Fund Revenue Summary by Classification

The Taxes, Charges for Services, and Operating Transfers In classifications are the primary sources of revenue for the City’s General Fund -Operating Fund and account for 89% of the revenues. The Taxes classification is comprised of the following three major sources: sales and use tax, property tax, and utility users’ tax. The Charges for Services classification includes user fees charged by city departments such as Community Development, Fire, General Services, and Community Services.

Finally, the Operating Transfers In classification represents transfers mainly from the Airport Fund, General Fund -Measure SST Fund, General Fund -Assigned (Reserves) Fund, Sanitation Fund, and funding from Gas Tax to support the City’s day-to-day operations.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Taxes 192,046,055 192, 971,891 203,088,319 203,810,470 209,741,110 722,151 0.4% 5,930,640 2.9% Licenses, Fees and Permits 16,781,556 17,618,841 16,936,668 21,365,230 22,054,560 4,428,562 26.1% 689,330 3.2% Fines, Forfeitures and Penalties 676,656 726,785 642,774 1,270,090 1,308,200 627,316 97.6% 38,110 3.0% Use of Money and Property 4,677,227 8,898,762 7,154,388 9,014,403 10,199,331 1,860,015 26.0% 1,184,928 13.1% Intergovernmental 521,909 368,968 490,127 435,630 442,070 (54,497) -11.1% 6,440 1.5% Other Revenues 4,638,131 676,712 319,604 54,310 54,310 (265,294) -83.0% - 0.0% Charges for Services 21,010,365 25,447,954 25,630,466 25,928,210 26,779,480 297,744 1.2% 851,270 3.3% Operating Transfers In 38,361,683 26,367,219 33,216,309 43,227,317 45,807,527 10,011,008 30.1% 2,580,210 6.0% Other Financing Sources 1,057,816 5,035,998 - - - - 0.0% - 0.0% Total Revenues 279,771,398$ 278,113,130$ 287,478,655$ 305,105,660$ 316,386,588$ 17,627,005$ 6.1% 11,280,928$ 3.7% 86 76
General Fund-Operating Fund Tax Revenue Summary by Classification

As shown in the summary table above, t he General Fund’s three core tax revenue sources are Sales and Use Tax , Property Tax , and Utility Users’ Tax . These tax categories typically represent approximately 87 % of the tax classification budget and about 58% of the overall General Fund - Operating Fund revenue budget.

Sales and Use Tax
The budget in this classification is projected to decrease by $0.8 million (-1.3%) in FY25-26, and an increase of $1.8 million (+2.9%) is anticipated for FY26 -27. This classification has continued to decrease from the peak in FY21-22 of $63.6 million and staff continues to be cautious with forecasting for several reasons. The Federal Reserve’s monetary policy to slow inflation continues to adversely affect short -term borrowing and sales tax revenue trends. As of March 2025, the Federal Reserve maintained the Federal Funds Rate in a range of 4.25-4.5%.

As for the latest available data from calendar Q4 2024 , for the last four quarters, the California Department of Tax & Fee Administration reported sales tax revenue growth in the following major industry groups: 4.0% in Restaurants and Hotels and 2.8% in Building and Construction. Conversely, Fuel and Service Stations experienced a decrease of 15.4%, Autos and Transportation a decrease of

9.5%, Business and Industry a decrease of 2.0%, General Consumer Goods a decrease of 3.0%, and Food and Drugs a decline of 0.7%. With core inflation above the federal reserve’s target level still a factor in the latest sales tax results, receipts from general consumer goods, such as specialty and department stores, and autos declined. It is anticipated there will be a further decline in sales, which is reflected in the City’s FY25 -26 budget. Auto leases, home furnishings, convenience stores, heavy industrial/printers, and the state and county pools were challenged in the last twelve mon ths offsetting some of the gains. The City of Torrance has a well-diversified mix of sales tax producers with the top 25 generating 39% of sales tax receipts and the top 100 generating 64% of sales tax receipts.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Sales and Use Tax 62,610,106 61,931,074 62,525,957 61,701,050 63,463,250 (824,907) - 1.3% 1,762,200 2.9% Property Tax 62,105,457 65,094,737 67,850,489 72,011,450 73,949,510 4,160,961 6.1% 1,938,060 2.7% Utility Users Tax 44,115,724 41,289,435 46,002,866 43,313,300 44,808,730 (2,689,566) -5.8% 1,495,430 3.5% Business License Tax 10,067,200 10,763,541 11,314,294 11,644,650 11,993,990 330,356 2.9% 349,340 3.0% Occupancy Tax 12,058,112 12,580,760 13,815,048 13,305,020 13,635,730 (510,028) -3.7% 330,710 2.5% Construction Tax 1,082,781 1,307,345 1,572,665 1,830,000 1,884,900 257,335 16.4% 54,900 3.0% Oil Severance Tax 6,675 4,998 7,000 5,000 5,000 (2,000) -28.6% - 0.0% Total Revenues 192,046,055$ 192,971,890$ 203,088,319$ 203,810,470$ 209,741,110$ 722,151$ 0.4% 5,930,640$ 2.9% 87 77
Property Tax
The budget in this classification is projected to increase by $4.2 million (+6.1%) in FY25-26, and an increase of $1.9 million (+2.7%) is anticipated for FY26-27. The City’s property tax base consists of a healthy mix of residential, commercial, and industrial properties . According to property tax consultants, HdL Coren & Cone, the City’s net taxable assessed values grew by 5.3%, increasing from $38.2 billion to $40.2 billion in FY24-25 and placing Torrance in the top 10 highest value cities in Los Angeles County (8 th). When examining the changes in net taxable assessed values, the largest contributors to this change were the residential and industrial categories. The residential market experienced the highest growth, increasing by 5.2% and adding $1.3 billion in net taxable assessed value. The industrial category experienced the second largest increase of 11.1%, adding $343.3 million in net taxable asse ssed value. Currently, the FY25-26 budget for property tax revenues is anticipated to surpass FY24-25 mid-year projections by 4.8%.

Based on the latest available calendar Q4 2024 data , the median sales price of a Torrance single- family detached home was $1,205,000, an increase of 5.0% when compared to the median sales price of $1,147,500 in the same quarter for 2023. During Q3 2024, the median sales price in Torrance hit an all-time high of $1,300,000, followed by a 7.3% decline in Q4 2024.

In addition to sales price, property tax revenues are also affected by the number of residential sales transactions. 171 homes were sold during the fourth quarter of 2024, 148 homes were sold during the same period in 2023. This is indicative of an increase in buyer demand and reassessments under Proposition 13, which directly impacts property tax revenue trends.

Utility Users’ Tax Revenue Summary by Classification

The budget in Utility Users’ Tax (UUT) classification is projected to decrease by $2.7 million (-5.8%) in FY25-26, and an increase of $1.5 million (+3.5%) is anticipated for FY26-27. The City’s UUT rate for electricity, telecommunications, gas, and cables are set at 6.5% and water is currently set at 6.0%.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Electricty 20,215,595 21,800,381 21,080,357 23,690,150 24,637,760 2,609,793 12.4% 947,610 4.0% Gas 5,757,504 4,771,722 6,003,793 5,475,770 5,631,470 (528,023) -8.8% 155,700 2.8% Refinery: Co-gen 856,944 605,914 893,601 718,020 739,560 (175,581) -19.6% 21,540 3.0% Refinery: Gas 8,295,360 4,532,115 8,650,211 3,775,320 3,888,580 (4,874,891) -56.4% 113,260 3.0% Water 3,605,812 3,759,495 3,760,058 4,087,660 4,305,840 327,602 8.7% 218,180 5.3% Cable 1,666,102 1,440,881 1,737,373 1,315,050 1,334,480 (422,323) -24.3% 19,430 1.5% Cellular 1,245,623 2,014,883 1,298,908 2,056,840 2,117,480 757,932 58.4% 60,640 2.9% Telecom 2,472,785 2,364,043 2,578,565 2,194,490 2,153,560 (384,075) -14.9% (40,930) -1.9% Total Revenues 44,115,725$ 41,289,434$ 46,002,866$ 43,313,300$ 44,808,730$ (2,689,566)$ -5.8% 1,495,430$ 3.5% 88 78
The primary driver of change from the prior period’s budget is a $4.9 million decrease in the Refinery:

Gas category, partially offset by a $2.6 million increase in the Electricity category. The Electricity and Refinery: Gas categories are influenced by current rates and consumption levels. Receipts from the Torrance Refinery experienced a decrease in gas during FY23-24 and FY24-25 as production continues to normalize following planned maintenance in the second fiscal quarter of 2024 . For FY25-26, UUT revenues are anticipated to fall short of the FY24-25 mid-year projections by $0.2 million (0.5%).

Business License Tax
The Business License Tax budget is projected to increase by $0.3 million (+2.9%) in FY25-26, and an increase of $0.3 million (+3.0%) is anticipated for FY26-27. The proposed FY25-26 budget has been re-aligned with FY24-25 actuals and includes additional revenues due to the approved agreement for business license tax recovery and audit services with HdL Companies . Annual renewals for approximately 14,000 businesses (including outside contractors) are billed in December, due on January 1, and become delinquent on February 1. Currently, the FY25-26 budget for Business License Tax is anticipated to surpass FY24-25 mid-year projections by 3.0%.

Occupancy Tax
The Occupancy Tax budget is projected to decrease by $510,000 (-3.7%) in FY25-26, followed by an anticipated increase of $331,000 (+2.5%) in FY26-27. According to STR Global, an industry leader in hospitality data and analytics, occupancy rates hovered around 81.2% from February 1, 2024, to March 31, 2025, unchanged from the same period the previous year. In addition, the average daily rate per room has increased by $4.18 (+2.6%), from $160.60 per night to $164.78 per night. With the steady return of travel and tourism, the City’s occupan cy rates are stabilizing after having exceeded pre-pandemic levels (FY18 -19) during FY22 -23. Currently, the FY25 -26 budget for Occu pancy Tax is expected to surpass FY24-25 mid-year projections by 1.5%.

Licenses, Fees & Permits
The Licenses, Fees, and Permits budget is projected to increase by $4.4 million (+26.1%) in FY25-26, and an increase of $0.7 million (+3.2%) is anticipated for FY26-27. Beginning in FY25-26, this revenue classification will include not only development-related fees—such as building, engineering, and fire inspection fees—but also franchise fees , which were previously reported as Franchise Tax, included in the Taxes classification. The primary driver of this change is a $2.7 million increase in refuse franchise fees, based on a waste hauler fee study nearing completion. Additional increases of $0.6 million, $0.2 million, and $0.1 million are expected from development -related fees, water franchise 89 79
fees, and sanitation franchise fees, respectively. Overall, the FY25-26 budget for this classification is anticipated to exceed FY24-25 mid-year projections by 13.6%.

Use of Money and Property
The Use of Money and Property budget is projected to increase by $1.9 million (+26.0%) in FY25-26, and an increase of $ 1.2 million (+13.1%) is anticipated for FY26 -27. This revenue source includes investment income from interest earnings, rents, and other assets. The primary factors driving the projected increase in FY25 -26 are the growth in reserve balances and higher investment earnings resulting from an increase in the federal funds rate. However, these gains will be partially offset by a decline in interest income from advances between the General Fund and the Successor Agency to the former Redevelopment Agency. Currently, t he FY25-26 budget for this classification is expected to exceed FY24-25 mid-year projections by 36.3%.

Fines and Forfeitures
The Fines and Forfeitures budget is projected to increase by $627,000 (+97.6%) in FY25-26, and an increase of $38,000 (+3.0%) is anticipated for FY26 -27. The Fines and Forfeitures revenue source primarily includes general court fees, traffic fines, parking fines, and administrative citations . The main driver of the FY25 -26 increase is a $570,000 rise in parking citation revenue, resulting from a newly established agreement with a company contracted to issue street sweeping citations. There is an offsetting expenditure for this contract, budgeted in the Police Department. Currently, the FY25- 26 budget for this classification is anticipated to surpass FY24-25 mid-year projections by 78.3%.

Charges for Services Revenue Summary by Department

The Charges for Services budget is projected to increase by $0.3 million (+1.2%) in FY25-26, and an increase of $0.9 million (+3.3%) is anticipated for FY26 -27. Currently, t he FY25-26 budget for this classification is anticipated to surpass FY24-25 mid-year projections by 6.6%.

Charges for Services
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
City Manager 806,164 696,740 765,661 746,710 782,040 (18,951) -2.5% 35,330 4.7% City Clerk 10,815 4,186 16,117 5,790 5,960 (10,327) -64.1% 170 2.9% Community Development 5,730,923 7,002,970 6,559,288 5,753,410 5,925,620 (805,878) -12.3% 172,210 3.0% General Services 981,678 978,228 1,136,049 1,016,700 1,047,200 (119,349) -10.5% 30,500 3.0% Non-Departmental 15,389 19,282 16,491 17,050 17,530 559 3.4% 480 2.8% Police 304,754 368,818 483,673 369,200 380,300 (114,473) -23.7% 11,100 3.0% Fire 8,513,144 10,846,381 11,178,044 11,620,500 12,057,430 442,456 4.0% 436,930 3.8% Public Works 230,762 252,073 267,151 560,110 576,910 292,959 109.7% 16,800 3.0% Community Services 4,416,736 5,269,886 5,207,992 5,838,740 5,986,490 630,748 12.1% 147,750 2.5% Finance - 9,390 - - - - 0.0% - 0.0% Total Revenues 21,010,365$ 25,447,954$ 25,630,466$ 25,928,210$ 26,779,480$ 297,744$ 1.2% 851,270$ 3.3% 90 80

This revenue source represents general government charges for an array of services such as construction-related fees (e.g. plan checks), green building code fees, inspection fees, emergency transport fees, and various participant fees (Community Services and General Services). The major changes in this revenue category for FY25-26 are driven by the following factors:
• Community Services – The department’s revenue budget is proposed to increase by $0.7 million (+12.1%) in FY25 -26, largely due to anticipated increases in recreation services, farmers’ market activity, and contract class fees.
• Fire – The department’s revenue budget is proposed to increase by $0.4 million (+4.0%) in FY25-26, mainly due to higher revenues in emergency transport and annual fire inspection fees.
• Community Development – The department’s revenue budget is proposed to decrease by $0.8 million ( -12.3%) in FY25 -26, primarily due to a realignment of the budget with actual receipts for plan check and inspection fees.

General Fund-Measure SST Fund Revenue Summary by Classification

The General Fund -Measure SST Fund accounts for approximately 7.6% of the General Fund’s total revenue budget. This fund specifically tracks revenue from the 0.50% transaction and use tax (sales tax) approved by Torrance voters in June 2022. This measure, titled Safe Strong Torrance, included four main funding priorities: Quality of Life; Fiscal Sustainability; Deferred Maintenance & Community Services/Programs; and Emergency Responsiveness. As the City’s governing body, the City Council will continue to approve the budgeted use of these funds . The Measure SST Citizens’ Oversight Committee will ensure funds are utilized in accordance with the spending plan as approved by the City Council and review the fund’s annual audited financials.

The General Fund -Measure SST Fund’s revenue budget is proposed to increase by $ 1.0 million (+4.0%) in FY25-26, and an increase of $0.8 million (+2.9%) is anticipated for FY26-27. The primary driver of the FY25-26 increase is an expected $0.8 million rise in the Taxes classification. The FY25-26 budget has been adjusted to reflect current consumer spending trends. 91 2025

EXPENDITURES
92 81
Expenditures
Citywide Expenditures Summary by Fund

The summary table above shows the citywide expenditure budget by fund. The citywide expenditure budget is proposed to increase by $ 56.9 million (+10.7%) in FY25-26. This increase is primarily driven by the following factors:
• The General Fund-Operating Fund is proposed to increase by $25.1 million (+8.7%). This is the result of planned increases in salaries and employee benefits, UAL payment s, and the transfers to the Capital Improvement Fund. This increase is partially offset by a decrease of $7.1 million in the transfers to the CEPPT Fund. Further expenditure details for this fund are provided in the Departments section of this document.
• The General Fund-Measure SST Fund is proposed to decrease by $1.3 million (-4.8%). This budget increase is the result of a reduction of $2.6 million in the transfer to the Capital Improvement Fund, partially offset by a $1.3 million increase in transfers to the General Fund Operating Fund related t o increases in Salaries & Employee Benefits to the City Manager, Information Technology, Police, and Fire departments . Further expenditure details for this fund are provided in the Departments section of this document. • The General Fund -Restricted Fund is proposed to increase by $ 7.2 million (+4320.9%) due to a transfer of $7. 3 million from the CEPPT Fund to the General Fund Operating Fund, to address rising UAL payment contributions and mitigate the deficit. This is the first year since establishing the CEPPT Fund that a transfer is being made to the General Fund Operating Fund to mitigate rising pension costs.

Fund Name
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
General Fund - Operating Fund 261,591,946 271,555,577 288,107,707 313,210,035 316,386,588 25,102,328 8.7% 3,176,553 1.0% General Fund - Measure SST 17,550,521 21,467,563 27,495,124 26,183,606 26,948,494 (1,311,518) -4.8% 764,888 2.9% General Fund - Restricted (799,059) 601,045 166,175 7,346,489 8,792,810 7,180,314 4320.9% 1,446,321 19.7% General Fund - Assigned 1,719,593 4,211,216 6,827,203 7,502,816 11,571,849 675,613 9.9% 4,069,033 54.2% AQMD Fund 185,580 154,656 277,141 360,478 415,305 83,337 30.1% 54,827 15.2% Debt Service Fund 22,098,251 22,593,178 23,107,338 23,625,753 24,154,567 518,415 2.2% 528,814 2.2% Meadow Park Parking Lot District 24,967 24,792 29,064 30,205 30,230 1,141 3.9% 25 0.1% Low Mod Fund 56,255 54,794 65,061 70,338 65,719 5,277 8.1% (4,619) -6.6% Section 8 Housing 6,969,158 8,186,982 8,865,679 9,250,801 9,976,195 385,122 4.3% 725,394 7.8% Street Lighting Fund 1,710,390 1,846,644 1,866,272 1,912,828 1,912,828 46,556 2.5% - 0.0% Traffic Safety Fund - 74,616 180,000 70,950 73,080 (109,050) -60.6% 2,130 3.0% Vanpool Fund 240,547 210,075 245,871 261,749 264,205 15,878 6.5% 2,456 0.9% Airport Fund 23,675,161 17,586,133 18,119,142 24,002,581 21,759,455 5,883,439 32.5% (2,243,126) -9.3% Sanitation Fund 14,811,382 26,435,711 20,106,241 19,329,652 19,951,107 (776,589) -3.9% 621,455 3.2% Sewer Fund 5,230,480 6,172,449 5,823,593 7,131,592 6,847,734 1,307,999 22.5% (283,858) -4.0% Transit Fund 28,721,123 33,137,906 41,472,492 46,301,919 48,750,749 4,829,427 11.6% 2,448,830 5.3% Water Fund 47,410,975 55,758,171 53,147,802 61,256,156 67,024,281 8,108,354 15.3% 5,768,125 9.4% Fleet Services Fund 5,270,328 8,849,664 8,761,355 13,049,141 14,110,080 4,287,786 48.9% 1,060,939 8.1% Self-Insurance Fund 16,210,166 21,074,360 23,514,888 24,301,818 25,760,086 786,930 3.3% 1,458,268 6.0% Redevelopment Agency Fund 1,739,425 1,672,576 1,401,953 1,252,179 1,163,453 (149,774) -10.7% (88,726) -7.1% Total Expenditures 454,417,189$ 501,668,108$ 529,580,101$ 586,451,086$ 605,958,815$ 56,870,985$ 10.7% 19,507,729$ 3.3% 93 82
• The General Fund-Assigned Fund is proposed to increase by $676,000 (+9.9%) for needed asset replacements.
• The Airport Fund is proposed to increase by $5.9 million (+32.5%). This is due to increased transfers to the General Fund for non-aeronautical lease revenues and the Airport Capital Fund for the renovation of airport hangars and taxiway lighting replacement. • The Transit Fund is proposed to increase by $ 4.8 million (+11.6%). This is due to salaries and employee benefits as a net result of changes in the department’s budgeted staffing levels, recently approved pay and benefit adjustments, CalPERS rates, and other various employee - related cost elements, as well as interdepartmental charges related to contributions to the Self-Insurance Fund and allocation of indirect cost.
• The Water Fund is proposed to increase by $8.1 million (+15.3%). This is due to increased Water Supply Costs being offset by decreased contributions to the Water Capital Project Fund. • The Fleet Services Fund is proposed to increase by $4.3 million (+48.9%) . This is partially due to a change to the consolidated flat rate approach, as well as increased costs related to parts, fuel, and labor associated with servicing the City Fleet. Additionally, increase in depreciation of $1.0 million is proposed due to newly acquired vehicles.

Citywide Expenditures Summary by Classification

The summary table above shows citywide expenditure budget by classification. For FY25-26, the increase of $56.9 million is driven by the following factors:
• The Salaries and Employee Benefits classification is proposed to increase by $23.9 million, a net result of changes in the department’s budgeted staffing levels, recently renewed or Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 211,708,794 221,126,899 254,172,030 278,080,874 291,390,070 23,908,844 9.4% 13,309,196 4.8% Salaries and Benefits Reimbursements (748,267) (973,039) (2,400,500) (1,770,500) (1,770,500) 630,000 -26.2% - 0.0% Materials, Supplies & Maintenance 26,337,898 31,983,377 36,087,128 31,761,069 32,519,503 (4,326,059) -12.0% 758,434 2.4% Materials Reimbursements (819,739) (866,701) (1,385,142) (1,175,231) (1,175,231) 209,911 -15.2% - 0.0% Parts, Fuel & Lubricants Inventory Purchases 4,418,626 5,605,552 5,637,548 5,637,548 5,607,548 - 0.0% (30,000) -0.5% Parts, Fuel & Lubricants Contra (4,419,138) (5,337,716) (5,634,548) (5,637,548) (5,607,548) (3,000) 0.1% 30,000 -0.5% Stored Water Rights Inventory Purchases 444,314 - - - - - 0.0% - 0.0% Stored Water Rights Contra (444,314) - - - - - 0.0% - 0.0% Professional/Contract Services 21,416,329 27,136,514 36,013,315 34,316,936 33,892,186 (1,696,379) -4.7% (424,750) -1.2% Water Supply Costs 32,958,829 33,568,387 34,785,000 41,177,000 44,877,000 6,392,000 18.4% 3,700,000 9.0% Training, Travel & Membership Dues 1,431,488 1,846,728 2,406,353 2,633,155 2,629,605 226,802 9.4% (3,550) -0.1% Depreciation and Amortization 5,835,513 5,260,916 6,677,026 11,226,518 12,670,861 4,549,492 68.1% 1,444,343 12.9% Liabilities, Settlements & Insurance 20,271,898 21,226,947 19,159,902 19,344,404 20,626,036 184,502 1.0% 1,281,632 6.6% Utilities 6,878,887 7,166,185 7,699,083 8,031,923 8,338,303 332,840 4.3% 306,380 3.8% Interdepartmental Charges 27,536,950 34,163,647 41,293,652 53,467,730 55,983,497 12,174,078 29.5% 2,515,767 4.7% Debt Service 48,353,551 49,620,857 50,104,749 51,916,257 52,962,691 1,811,508 3.6% 1,046,434 2.0% Debt Service Reimbursements (20,275,020) (20,848,510) (21,436,950) (22,760,135) (23,394,479) (1,323,185) 6.2% (634,344) 2.8% Capital Acquisitions 3,126,260 12,380,757 43,661,847 20,722,991 16,354,974 (22,938,856) -52.5% (4,368,017) -21.1% Asset Contra Account (2,172,019) (5,250,654) (41,288,841) (17,459,500) (9,034,000) 23,829,341 -57.7% 8,425,500 -48.3% Bad Debts and Other Losses (4,139,978) (1,039,536) 3,238,860 3,256,000 3,353,680 17,140 0.5% 97,680 3.0% Other Expenditures 254,532 287,206 53,500 53,500 53,500 - 0.0% - 0.0% Reimbursements-Indirect Costs (6,320,271) (7,901,694) (9,147,553) (10,741,685) (11,102,923) (1,594,132) 17.4% (361,238) 3.4% Other Operating Transfers Out 82,782,066 92,511,989 69,883,641 84,369,780 76,784,042 14,486,139 20.7% (7,585,738) -9.0% Total Expenditures 454,417,189$ 501,668,111$ 529,580,100$ 586,451,086$ 605,958,815$ 56,870,986$ 10.7% 19,507,729$ 3.3% 94 83
anticipated labor contracts, salary grid modifications, longevity pay adjustments, CalPERS rates, benefits elections, and other various employee -related cost elements. $6. 8 million of this increase is directly attributable to payments towards the City’s unfunded actuarial liability (UAL).
• The Water Supply Costs classification is proposed to increase by $6.4 million due to increases in both demand/usage and cost of water.
• The Interdepartmental Charges classification is proposed to increase by $12.2 million, as the City’s internal fleet charges to departments were reclassified from Materials, Supplies & Maintenance classification to the Interdepartmental Charges classification, which represents $9.4 million of the increase in FY25-26 budget. • The Other Operating Transfers Out classification is proposed to increase by $14.5 million, as a result of a $10.0 million increase in transfers to the General Fund Operating Fund (mainly from the CEPPT Fund , Airport Fund and General Fund Measure SST Fund ), increase of $ 9.8 million to the Capital Improvement Fund, and a $5.3 million increase to the Airport Capital Fund. These increases were partially offset by a $7.1 million decrease in contributions from the General Fund Operating Fund to the CEPPT Fund.

Citywide Expenditures Summary by Department

The summary table above shows the citywide expenditure budget by department. Further details are provided in the Departments section of this document.

As shown in the table above, t he City’s FY25-26 operating budget includes a proposed increase of

13.95 FTE position, the net result of various departmental staffing modifications which are described in the following sections.

City Manager
• Delete 0.25 FTE Administrative Assistant to streamline the budget to better reflect on actual administrative activities in the City Manager’s Office.

The Communications Division (formerly known as the Cable Division) is proposing a reorganization that will change the duties of the employees and expand its focus and efforts towards expanding content creation duties, as well as better align with the City’s interests regarding public media.

• Add 1.0 FTE Management Associate to support the operations of the division during the reorganization process as well as improve internal workflows and enhance service delivery.

The following position conversions were part of the evaluation of the new Communications Division and will align with the Division’s new goals and responsibilities:

• Convert 1.0 FTE Supervising Producer/Writer to 1.0 FTE Supervising Content Creator • Convert 1.0 FTE Producer Writer Assistant to 2.0 FTE Content Creator • Convert 1.0 FTE Cable TV Operations Ass istant to 1.0 FTE Multimedia Production Coordinator
• Convert 4.50 FTE Cable TV Production Assistants to 4.50 FTE Production Assistants

FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
FTE
I
ncrease/
(Decrease)
FY26-27
FTE
I
ncrease/
(Decrease)
FY25-26
Expenditure/
(
Savings)
FY26-27
Expenditure/
(
Savings)
City Manager 47.30 45.25 45.25 (2.05) - (83,700) - Community Development 74.00 77.00 77.00 3.00 - 301,225 - Finance 38.25 38.25 38.25 - - 10,413 - General Services 116.75 117.75 117.75 1.00 - 62,000 - Human Resources 14.00 16.00 16.00 2.00 - 190,975 - Information Technology 39.00 44.00 44.00 5.00 - 983,500 - Police 359.00 354.00 354.00 (5.00) - (632,550) - Public Works 208.00 209.00 209.00 1.00 - 62,285 - Transit 196.80 205.80 205.80 9.00 - 750,025 - Total 13.95 - 1,644,173$ - 96 85
The following positions are vacant and are proposed to be eliminated as their duties do not align with the new vision of the Communications Division.

• Delete 1.0 FTE Cable TV Production Supervisor
• Delete 1.0 FTE Community Television Supervisor
• Delete 1.80 FTE Cable TV Announcer

Community Development
• Add 1.0 FTE Permit Technician I to support the increased workload related to running the Permit Center and to ensure state-mandated permit review timelines are met. • Add 1.0 FTE Senior Building Inspector to be assigned to seismic inspections and as time allows overflow inspections.
• Add 1.0 FTE Plans Examiner to assist with added workload related to the number of projects being submitted to the Permit Center.

Finance
• Convert 1.0 FTE Accountant, Senior to 1.0 FTE Accounting Supervisor as part of organization adjustment driven by recruitment challenges and will update the position description to improve hiring outcomes.

General Services
• Transfer 1.0 FTE Custodian from the Transit Department as part of a functional reassessment of the role and its ability to assist citywide. This results in a zero net impact to the City.

Human Resources
The following positions were transferred from the Transit Department as part of an existing functional reassessment of the role and its ability to support citywide. This results in a zero net impact to the City.

• Transfer 1.0 FTE HR Technician
• Transfer 1.0 FTE Principal HR Analyst

97 86
Information Technology
The following positions were transferred from the Police Department as part of an existing functional reassessment of the department’s role and its ability to support public safety citywide. This results in a zero net impact to the City.

• Add 2.0 FTE Information Technology Specialist
• Add 2.0 FTE Information Technology Analyst
• Add 1.0 FTE Systems Analyst

The following positions below are part of the IT Department’s restructuring based on the increased responsibilities of the Department related to citywide software management, maintenance of cyber infrastructure, and public safety.

• Convert 1.0 FTE Communication Supervisor (Wireless) and 1.0 FTE Communication Supervisor (Telecomm) into a single 1.0 FTE Communications Supervisor • Convert 2.0 FTE Telecommunications Technicians to 2.0 FTE Wireless Technicians to better define the duties and responsibilities of the role following the Department’s restructuring.
• Convert 1.0 FTE Storekeeper to 1.0 FTE Information Technology Specialist • Add 1.0 FTE Information Technology Manager and add 1.0 FTE Project Manager to meet increasing demands in customer service, cybersecurity, and GIS, and implement the City’s upcoming Enterprise Resource Planning (ERP) project among other projects. • Delete 1.0 FTE Senior Admin Assistant vacant position as part of an identified efficiency improvement related to decreased administrative workload.

Public Works
• Add 1.0 FTE Maintenance Worker to support the Citywide Tree Planting program with the Streetscape Division to maintain the newly planted trees by assisting with the trees’ establishment and trimming.

Transit
• Add 12.0 FTE Bus Operator s to better align the staffing budget with anticipated FY25 -26 program activity.

98 87
Non-Wage Program-Level Budget Changes Summary by Department

In addition to staffing changes, the proposed FY25-26 operating budget also includes non -wage modifications. Staff utilized a zero-based budgeting strategy and examined all non-wage expenditure classifications to properly allocate resources based on anticipated activity for the coming fiscal year which are described in the following sections. The table above is intended to highlight the cost of non- wage expenditures related to new or expanded program initiatives, while ignoring budget changes that are primarily the result of fluctuations in cost or changes in overall budget structure.

City Manager
• Professional/Contract Services increases for Civic Center Master Plan Survey Work (+65k) and for a land lease audit program (+150k), partially offset by decreases due to a one -time consulting contract related to land development (-$105k). • Training, Travel & Membership Dues increases for RTC Emergency Alert training (+$50k), conferences (+$50k), and travel to local conferences such as CALPELRA and ICMA (+$20k).

City Treasurer
• Professional/Contract Services decreases due to one-time Treasury/Finance check s and balances audit (-$75k) in FY24-25.

Community Development
• Professional/Contract Services increases for oil well environmental assessment (+$50k).

Department
FY25-26 Non-Wage
Program-level
B
udget Changes
City Manager 230,000
City Treasurer (75,000)
Community Development 50,000
Community Services 484,000
General Services 404,000
Human Resources (15,000)
Information Technology 25,000
Police (200,000)
Public Works (200,000)
Total 703,000$
99 88
Community Services
• Materials, Supplies & Maintenance increases due to the need for citywide turf seeds, fertilizer, and topper for sports fields (+$45k) and weed abatement (+$39k). • Professional/Contract Services increases for tree trimming services in the City’s parks (+$250k), increases for capital project cost es timating services (+$50K), and a non-recurring operational assessment study on Library Services (+$100K).

General Services
• Materials, Supplies & Maintenance increases for various services related to building maintenance to address needed city repairs and improvements such as HVAC and plumbing maintenance and repair and paint (+$404k).

Human Resources
• Materials, Supplies & Maintenance increases due to the addition of the Employee Picnic (+$50k), which offset with decreases due to the removal of employee medical services for the onboarding process (-$50k).
• Professional/Contract Services decreases for fingerprinting services related to the onboarding process (-$15k).

Information Technology
• Professional/Contract Services increases for a new feature in the Accela software related to Coyote Reporting (+$25k).

Police
• Professional/Contract Services decreases due to the removal of various legal services related to previously ongoing internal investigations (-$300k), partially offset by increases for a new feature in the CAD software related to public safety (+50k) and increased costs for the drones program (+$50k).

Public Works
• Professional/Contract Services decreases (-$200k) for various professional services related to the Street Lights and Signals program that were revised for costs.

100

89 General Fund-Operating Fund Expenditures Summary by Department

The summary table above shows the General Fund -Operating Fund expenditure budget by department. The General Fund-Operating Fund expenditure budget is projected to increase by $25.1 million in FY25 -26. Further details explaining the increase in FY25 -26 are provided in the Departments section of this document.

General Fund-Operating Fund Expenditure Summary by Classification

The summary table above shows the General Fund -Operating Fund expenditure budget by classification. The General Fund -Operating Fund expenditure budget is projected to increase by $25.1 million in FY25 -26. Further details explaining the increase in FY25 -26 are provided in the Departments section of this document.

Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Council 485,730 532,783 577,734 869,510 869,910 291,776 50.5% 400 0.0% City Manager 6,338,430 6,192,829 7,702,510 9,161,411 9,473,614 1,458,901 18.9% 312,203 3.4% City Attorney 2,796,410 2,989,171 3,397,091 3,538,490 3,702,707 141,399 4.2% 164,217 4.6% City Clerk 877,876 1,350,517 1,664,355 1,619,159 1,439,929 (45,196) -2.7% (179,230) -11.1% City Treasurer 338,794 343,136 483,686 419,207 404,190 (64,479) -13.3% (15,017) -3.6% Finance 5,389,530 5,725,018 6,263,088 6,311,088 6,520,769 48,000 0.8% 209,681 3.3% Human Resources 2,110,570 2,410,154 3,244,183 3,355,429 3,479,198 111,246 3.4% 123,769 3.7% Civil Service 737,818 1,013,511 1,144,051 - - (1,144,051) -100.0% - 0.0% Community Development 8,341,425 8,641,134 10,914,313 11,857,126 12,323,532 942,813 8.6% 466,406 3.9% CIT 7,486,252 7,524,680 9,314,911 11,051,874 11,238,256 1,736,963 18.6% 186,382 1.7% General Services 9,456,227 10,072,190 12,000,153 12,800,363 13,315,473 800,210 6.7% 515,110 4.0% Non-Departmental 36,248,874 34,507,488 12,729,204 18,592,293 9,185,077 5,863,089 46.1% (9,407,216) -50.6% Police 86,678,248 87,965,069 101,729,294 110,647,820 116,309,823 8,918,526 8.8% 5,662,003 5.1% Fire 56,677,235 60,516,312 69,354,045 71,105,261 74,373,321 1,751,216 2.5% 3,268,060 4.6% Public Works 16,270,511 18,576,693 21,011,493 23,337,022 24,208,764 2,325,529 11.1% 871,742 3.7% Community Services 21,358,015 23,194,892 26,577,596 28,543,982 29,542,025 1,966,386 7.4% 998,043 3.5% Total Expenditures 261,591,945$ 271,555,577$ 288,107,707$ 313,210,035$ 316,386,588$ 25,102,328$ 8.7% 3,176,553$ 1.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 181,083,665 185,533,350 211,000,334 231,201,342 242,493,622 20,201,008 9.6% 11,292,280 4.9% Salaries and Benefits Reimbursements (738,235) (963,531) (2,400,500) (1,770,500) (1,770,500) 630,000 -26.2% - 0.0% Materials, Supplies & Maintenance 10,964,026 13,444,399 16,489,304 12,869,292 12,901,936 (3,620,012) -22.0% 32,644 0.3% Materials Reimbursements (432,584) (324,623) (485,142) (475,231) (475,231) 9,911 -2.0% - 0.0% Professional/Contract Services 12,132,703 13,961,387 20,428,493 18,934,499 18,350,448 (1,493,994) -7.3% (584,051) -3.1% Training, Travel & Membership Dues 1,296,268 1,685,763 2,047,061 2,323,361 2,319,811 276,300 13.5% (3,550) -0.2% Liabilities, Settlements & Insurance 679,787 148,684 221,680 6,180 6,489 (215,500) -97.2% 309 5.0% Utilities 4,616,160 4,667,172 5,089,132 5,202,950 5,462,500 113,818 2.2% 259,550 5.0% Interdepartmental Charges 15,835,772 19,134,445 24,303,425 30,274,558 31,865,565 5,971,133 24.6% 1,591,007 5.3% Debt Service 22,646,081 23,578,848 23,369,441 23,874,385 24,403,199 504,944 2.2% 528,814 2.2% Debt Service Reimbursements (18,337,743) (18,832,766) (19,341,206) (19,862,721) (20,397,834) (521,515) 2.7% (535,113) 2.7% Capital Acquisitions 1,360,558 5,688,425 591,109 710,675 699,125 119,566 20.2% (11,550) -1.6% Asset Contra Account (300,812) (740,544) - - - - 0.0% - 0.0% Bad Debts and Other Losses - 43 1,000 1,000 1,030 - 0.0% 30 3.0% Reimbursements-Indirect Costs (6,320,271) (7,901,694) (9,147,553) (10,741,685) (11,102,923) (1,594,132) 17.4% (361,238) 3.4% Other Operating Transfers Out 37,106,571 32,476,219 15,941,129 20,661,930 11,629,351 4,720,801 29.6% (9,032,579) -43.7% Total Expenditures 261,591,946$ 271,555,577$ 288,107,707$ 313,210,035$ 316,386,588$ 25,102,328$ 8. 7% 3,176,553$ 1.0% 101

90 General Fund-Measure SST Fund Expenditure Summary by Classification

The General Fund -Measure SST Fund comprises approximately 7.4% of the General Fund’s overall expenditure budget. This fund separately accounts for the 0.50% transaction and use tax (sales tax) approved by the Torrance voters in June 2022. This measure, titled Safe Strong Torrance, included four main funding priorities: Quality of Life; Fiscal Sustainability; Deferred Maintenance & Community Services/Programs; and Emergency Responsiveness . As the City’s governing body, City Council will continue to approve t he budgeted use of these funds ; t he Measure SST Citizens’ Oversight Committee will ensure funds are utilized in accordance with the spending plan as approved by City Council and review the fund’s annual audited financials.

The General Fund-Measure SST Fund’s expenditure budget is proposed to decrease by $1.3 million (-4.8%) in FY25-26 and increase by $765,00 (+2.9%) in FY26-27. The decrease in FY25-26 is primarily attributable to a decrease in transfer s to the Capital Improvement Fund in the Other Operating Transfers Out classification, in order to maintain adequate funding for homelessness response efforts, cybersecurity enhancements, public safety sworn position staffing levels , and r eserves contributions.

Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY25-26
Percent
Change
Materials, Supplies & Maintenance - 9,796 727, 398 771,254 771,254 43,856 6.0% - 0.0% Professional/Contract Services 158,705 396,052 876,500 814,800 814,800 (61,700) -7.0% - 0.0% Capital Acquisitions - 109,028 - - - - 0.0% - 0.0% Other Operating Transfers Out 17,391,816 20,952,688 25,891,226 24,597,552 25,362,440 (1,293,674) -5.0% 764,888 3.1% Total Expenditures 17,550,521$ 21,467,564$ 27,495,124$ 26,183,606$ 26,948,494$ (1,311,518)$ -4.8% 764,888$ 2.9% 102
2025

DEPARTMENTS
103

91 Departments
City Attorney

Department Organization

Mission Statement
The mission of the Torrance City Attorney’s Office is to provide the highest quality legal services to the City of Torrance with integrity, professionalism, and dedication. We are committed to protecting the City’s legal interests, promoting justice and fairness, supporting the effective delivery of public services, and ensuring compliance with the law. Through sound legal advice, ethical advocacy, and collaborative problem -solving, we strive to enhance public trust and contribute to the well-being and safety of the Torrance community.

Functional Responsibilities
Through its Civil Division, the Office acts as legal counsel to the City Council, City Manager, and all City departments, boards, commissions, and committees in litigation matters. The responsibilities of the General Advice Division include providing proactive legal advice, interpreting, and advising on laws related to city governance, drafting, and reviewing ordinances, resolutions, contracts, and policies, and supporting the City’s goals while minimizing legal risk.

The Criminal Division prosecutes state law and municipal code violations, and working with law enforcement to uphold public safety and ensure justice.

104

92 City Attorney Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, the Salaries and Employee Benefits expenditure classification is proposed to increase by $160,000 (+5.4%) in FY25-26 and $186,000 (+6.0%) in FY26-

27. This increase is a result of changes in recently approved pay and benefit adjustments and increasing CalPERS rates. The Professional/Contract Services expenditure classifications in FY25-26 and FY26-27 is proposed to decrease by $7,900 ( -2.6%) and $25,200 ( -8.6%) respectively, due to the reduction of temporary legal assistance and outside legal counseling services while vacant positions were being filled. The Interdepartmental Charges expenditure classification is proposed to decrease by $6,500 (-11.6%) in FY25-26 and increase by $3,300 (+6.7%) in FY26-27 due to changes in the City’s Self-Insurance Fund departmental allocations, which are updated annually based on the 5 -year history of each department’s claim counts and claim costs.

City Attorney Staffing Budget Summary (General Fund)

The City Attorney’s Office staffing budget has no newly proposed changes, remaining at 14.0 FTE Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Other Revenues 24,609 - - - - - 0.0% - 0.0% Total Revenues 24,609$ -$ -$ -$ -$ - $ 0.0% -$ 0.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
Salaries and Employee Benefits 2,436,514 2,623,689 2,933,694 3,093,230 3,278,984 159,536 5.4% 185,754 6.0% Salaries and Benefits Reimbursements - - - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 39,050 43,590 54,601 49,885 49,885 (4,716) -8.6% - 0.0% Professional/Contract Services 224,278 230,872 299,975 292,122 266,902 (7,853) -2.6% (25,220) -8.6% Training, Travel & Membership Dues 34,928 37,934 47,775 46,346 46,346 (1,429) -3.0% - 0.0% Liabilities, Settlements & Insurance - - - - - - 0.0% - 0.0% Utilities 4,677 5,261 5,250 7,600 8,000 2,350 44.8% 400 5.3% Interdepartmental Charges 47,936 40,768 55,796 49,307 52,590 (6,489) -11.6% 3,283 6.7% Other Operating Transfers Out 9,026 7,057 - - - - 0.0% - 0.0% Total Expenditures 2,796,410$ 2,989,171$ 3,397,091$ 3,538,490$ 3,702,707$ 141,399 $ 4.2% 164,217$ 4.6% Revenues Less Expenditures (2,771,801)$ (2,989,171)$ (3,397,091)$ (3,538,490)$ (3,702,707)$ Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Assistant City Attorney 1.00 1. 00 1.00 1.00 1.00 - - City Attorney 1.00 1.00 1.00 1.00 1.00 - - Deputy City Attorney I 3.00 4.00 3.00 3.00 3.00 - - Deputy City Attorney II 2.00 1.00 1.00 1.00 1.00 - - Deputy City Attorney III 1.00 3.00 3.00 3.00 3.00 - - Law Office Administrator 1.00 1.00 1.00 1.00 1.00 - - Legal Assistant I 2.00 - - - - - - Legal Assistant II 2.00 4.00 4.00 4.00 4.00 - - Office Assistant - - - - - - - Total FTE 13.00 15.00 14.00 14.00 14.00 - - 105

93 City Clerk

Department Organization

Mission Statement
The City Clerk’s Office is the heart and hub of the City – connecting the Community to the services of the City . The mission of the City Clerk’s Office is to be the driver for open and transparent government, caretaker and custodian of public records, steward for the elections process, and ambassador to and conduit for the democratic processes of the City. The City Clerk’s Office balances the public’s need to know with the individual’s right to privacy.

Functional Responsibilities
Elected by the citizens of Torrance, the City Clerk is the custodian of City records and keeper of the City Seal; agent for service of legal processes and accepts claims in actions against the City, administers oaths or affirmations, maintains the City’s R ecords Retention Schedule; serves the City’s Elections Officer who conducts municipal elections; and is the filing officer for the City for Conflict of Interest and Campaign Statement Forms. The City Clerk’s Office creates and maintains the official minute s from City Council and Commission meetings, maintenance of the Municipal Code, and conducts the opening of all formal City bids.

106

94 City Clerk Operating Budget Summary (General Fund-Operating Fund)

Revenues in FY25-26 are expected to decrease by $10,300 (64.1%) and are mainly due to the Charges for Services revenue classification. This is driven by the need to realign the budget for appeal fees to better match actual receipts. In FY26 -27, charges for services are anticipated to remain fairly consistent.

As shown in the summary table above, the Salaries and Employee Benefits expenditure classification is proposed to decrease by $10,500 (-0.9%) in FY25-26 and increase by $48,000 (+4.3%) in FY26 -27, which is a result of changes in the department’s recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements . The Professional/Contract Services expenditure classification is proposed to decrease $27,000 ( -6.1%) in FY25-26 from the consolidation of software contracts to the Information Technology Department.

This classification is proposed to also decrease $ 231,000 (55.9%) in FY26 -27 from the reduction of election costs in FY26-27 as it is not an election year and therefore will not incur any election-related costs. The Interdepartmental Charges expenditure classification is proposed to decrease by $4,500 (-7.8%) and increase in FY26-27 by $3,600 (+6.7%) due to the City’s continued efforts to ramp up Self- Insurance Fund contributions to address its negative fund balance.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Other Revenues 105 105 - - - - 0.0% - 0.0% Charges for Services 10,815 4,186 16,117 5,790 5,960 (10,327) -64.1% 170 2.9% Total Revenues 10,920$ 4,291$ 16,117$ 5,790$ 5,960$ (10,327) $ -64.1% 170$ 2.9% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 871,581 950,316 1,126,334 1,115,872 1,163,945 (10,462) -0.9% 48,073 4.3% Salaries and Benefits Reimbursements (15) (45) - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 17,610 14,391 24,885 16,854 16,854 (8,031) -32.3% - 0.0% Professional/Contract Services (72,100) 322,915 440,050 413,075 182,215 (26,975) -6.1% (230,860) -55.9% Training, Travel & Membership Dues 12,096 17,344 15,225 19,983 19,983 4,758 31.3% - 0.0% Liabilities, Settlements & Insurance - - - - - - 0.0% - 0.0% Interdepartmental Charges 34,754 34,406 57,861 53,375 56,932 (4,486) -7.8% 3,557 6.7% Other Operating Transfers Out 13,951 11,190 - - - - 0.0% - 0.0% Total Expenditures 877,876$ 1,350,517$ 1,664,355$ 1,619,159$ 1,439,929$ (45,196) $ -2.7% (179,230)$ -11.1% Revenues Less Expenditures (866,957)$ (1,346,226)$ (1,648,238)$ (1,613,369)$ (1,433,969)$ 107

95 City Clerk Staffing Budget Summary (General Fund)

The City Clerk’s staffing budget has no newly proposed changes, remaining at 9.0 FTE.

Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Administrative Assistant - 2. 00 2.00 2.00 2.00 - - City Clerk 1.00 1.00 1.00 1.00 1.00 - - Deputy City Clerk I 2.00 3.00 3.00 3.00 3.00 - - Deputy City Clerk II 1.00 2.00 2.00 2.00 2.00 - - Deputy City Clerk III 1.00 1.00 1.00 1.00 1.00 - - Office Assistant 2.00 - - - - - - Records Management Specialist 1.00 - - - - - - Total FTE 8.00 9.00 9.00 9.00 9.00 - - 108

96 City Council

Department Organization

Mission Statement
The mission of the City Council is to adopt legislation, set policy, resolve issues, and establish the budget of the City. City Council is directly accountable to the electorate and must constantly balance the views of individuals and groups with the needs of the entire community.

Functional Responsibilities
The City Council consists of one Mayor and six Council members who represent six districts. The Mayor is elected at -large while Council members are elected by residents in their districts. They establish policy; authorize expenditures; adopt an annual budget; conduct City Council meetings, various workshops, and committee meetings; and appoint volunteers to serve on advisory boards, commissions, and committees. Mayor and Councilmembers may serve as representatives on intergovernmental and regional boards, commissions, and committees. 109

97 City Council Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, the Salaries and Employee Benefits expenditure classification is proposed to increase by $229,100 (+121.9%), due to voter approval of Measure TC on November 4, 2024, which modified the Torrance City Charter to set City Council compensation equal to the current minimum wage of the State of California, as well as changes in CalPERS rates and other various employee-related cost elements.

The proposed decrease of $11,300 ( -19.8%) in FY25 -26 in the Professional/Contract Services expenditure classification is due to the reclassification of certain expenses to the City Council’s Training, Travel & Membership Dues expenditure classification to better align with Council activities. The Training, Travel & Membership Dues expenditure classification is proposed to increase by $81,800 (+29.7%) in FY25 -26, partially due to the reclassification of expenses from the Professional/Contract Services classification, and partially due to an expected increase in travel related to State Advocacy, Federal Advocacy, and Economic Development efforts.

City Council Staffing Budget Summary (General Fund)

The City Council’s staffing budget has no newly proposed changes, remaining at 7.0 FTE.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Other Revenues 6,210 - - - - - 0.0% - 0.0% Total Revenues 6,210$ -$ -$ -$ -$ -$ 0.0% -$ 0.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 152,330 181,082 187,968 417, 108 417,108 229,140 121.9% - 0.0% Materials, Supplies & Maintenance 23,442 36,887 46,561 40,755 40,755 (5,806) -12.5% - 0.0% Professional/Contract Services 87,417 70,585 56,817 45,550 45,550 (11,267) -19.8% - 0.0% Training, Travel & Membership Dues 208,989 229,881 275,876 357,697 357,697 81,821 29.7% - 0.0% Utilities 8,042 9,380 10,512 8,400 8,800 (2,112) -20.1% 400 4.8% Other Operating Transfers Out 5,510 4,967 - - - - 0.0% - 0.0% Total Expenditures 485,730$ 532,783$ 577,734$ 869,510$ 869,910$ 291,776$ 50.5% 400$ 0.0% Revenues Less Expenditures (479,520) $ (532,783) $ (577,734) $ (869,510) $ (869,910) $ Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
Increase/
(
Decrease)
FY26-27
Increase/
(
Decrease
)
City Council 7.00 7.00 7.00 7.00 7.00 - - Total FTE 7.00 7.00 7.00 7.00 7.00 - - 110

98 City Manager

Department Organization

Mission Statement
The mission of the City Manager and the City Manager’s Office is to guide and coordinate the efforts of City departments in carrying out policies adopted by the City Council. The City Manager develops and implements a strategic plan that provides a maximum quality of life for the residents of the community at the optimum cost, and to implement the City’s mission statement, General Plan, and the priorities of the Strategic Plan.

Functional Responsibilities
The City Manager manages all municipal activities as provided by the City Charter; to advise the City Council on the City’s financial and capital improvement needs and other municipal matters; ensures the enforcement of all City laws and ordinances; manage s the City’s properties; submits a balanced budget; directs all City departments; appoints department heads and authorizes appointment of all other City employees; directs the City’s capital improvement projects; informs the public of City activities and s ervices through the media; and represents management in employer -employee relations matters. The City Manager directs activities of the Office of Emergency Services , the Communications Division and the Civil Service Division, and is the focal point for economic development and community relations.

111

99 City Manager Operating Budget Summary (General Fund-Operating Fund)

The City Manager’s Office revenue and expenditure budgets are now fully reflective of the Civil Service Division, including the alignment of staffing levels and non -wage expenditures, whose FY25 -26 and FY26-27 fiscal updates are listed below.

Revenue sources in FY25 -26 are expected to decrease by $219,000 ( -8.7%). This is primarily due to a decrease in the Licenses, Fees and Permits revenue classification, partially offset by an increase in the Operating Transfers In revenue classification. The Licenses, Fees and Permits revenue classification for FY25 -26 is anticipated to decrease by $330,000 ( -20.0%), primarily driven by decreases in franchise fee revenues. An increase of $130,000 (+126.7%) in FY25-26 from sources in the Operating Transfers In revenue classification is due to transfers from the Measure SST Fund, for positions related to homeless outreach.

The Salaries and Employee Benefits expenditure classificati on is proposed to increase by $1,165,300 (+22.3%), primarily due to the consolidation of the Civil Service Division into this department. Additionally, this increase includes the net result of proposed changes in the department’s budgeted staffing levels , recently approved pay and benefit adjustments , CalPERS rates, and other various employee -related cost elements. The Professional/Contract Services expenditure classification is proposed to increase by $138,700 (+7.6%) as a net result of consolidating the Civil Service Division Budget , a decrease in one -time consulting contract related to land development (-$105k), and increases in contract services related to land lease audits (+$150k) and homelessness (+ $64k). The Training, Travel & Membership Dues expenditure classification is Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Licenses, Fees and Permits 1,537,660 1,378,445 1,645,918 1,316,120 1,355,600 (329,798) -20.0% 39,480 3.0% Intergovernmental - - - - - - 0.0% - 0.0% Other Revenues 295 55,066 - - - - 0.0% - 0.0% Charges for Services 806,164 696,740 765,661 746,710 782,040 (18,951) -2.5% 35,330 4.7% Operating Transfers In - - 102,447 232,266 245,909 129,819 126.7% 13,643 5.9% Total Revenues 2,344,119$ 2,130,251$ 2,514,026$ 2,295,096$ 2,383,549$ (218,930)$ -8.7% 88,453$ 3.9% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 4,917,649 4,567,975 5,231,105 6,396,450 6,731,140 1,165,345 22.3% 334,690 5.2% Salaries and Benefits Reimbursements - - - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 134,997 180,925 218,430 191,026 200,726 (27,404) -12.5% 9,700 5.1% Materials Reimbursements - - - - - - 0.0% - 0.0% Professional/Contract Services 968,549 1,036,003 1,821,191 1,959,890 1,908,965 138,699 7.6% (50,925) -2.6% Training, Travel & Membership Dues 120,327 155,025 156,800 265,974 265,974 109,174 69.6% - 0.0% Liabilities, Settlements & Insurance 6,500 - - 6,180 6,489 6,180 0.0% 309 5.0% Utilities 67,028 71,301 86,826 89,300 93,800 2,474 2.8% 4,500 5.0% Interdepartmental Charges 91,453 121,855 168,158 235,091 249,020 66,933 39.8% 13,929 5.9% Capital Acquisitions 13,608 41,339 20,000 17,500 17,500 (2,500) -12.5% - 0.0% Other Operating Transfers Out 18,318 18,406 - - - - 0.0% - 0.0% Total Expenditures 6,338,430$ 6,192,829$ 7,702,510$ 9,161,411$ 9,473,614$ 1,458,901$ 18.9% 312,203$ 3.4% Revenues Less Expenditures (3,994,310)$ (4,062,578)$ (5,188,484)$ (6,866,315)$ (7,090,065)$ 112

100
proposed to increase by $109,000 (+69.6%) as a net result of consolidating the Civil Service Division Budget as well as increased training relating to the emergency communications alert system (+$49k) and professional development training (+$40k).

The Interdepartmental Charges expenditure classification is proposed to increase by $66,900 (+39.8%) primarily due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification of $24,000. As such, there is a corresponding decrease in the Materials classification of $40,400. In an effort to centralize the variability of fleet charges to the Fleet Services Fund, the city will be charging departments an annual flat rate (rather than an hourly based rate) based on average annual service cost and replacement cost for vehicles assigned to their departments. The additional increase is due to the Self-Insurance Fund contribution, as the contribution factor for each department is updated based on the historical claim counts and expenditures during the five-year lookback period.

Civil Service Division Operating Budget Summary (General Fund-Operating Fund)

The Civil Service Division was previously presented as a separate Department in the FY24 -25 Operating Budget Book. As part of ongoing realignments to better present data to the public, the Civil Service Division’s budget is now reflected in the City Manage r’s Office Operating Budget Summary Table above.

City Manager Operating Budget Summary (General Fund-Measure SST Fund)

Revenues
FY22-23
Actual

FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 562,970 598, 654 741,998 - - (741,998) -100.0% - 0.0% Salaries and Benefits Reimbursements - - - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 6,467 15,811 14,558 - - (14,558) -100.0% - 0.0% Professional/Contract Services 147,788 336,952 348,233 - - (348,233) -100.0% - 0.0% Training, Travel & Membership Dues 5,902 5,046 6,947 - - (6,947) -100.0% - 0.0% Liabilities, Settlements & Insurance 4,881 5,110 6,180 - - (6,180) -100.0% - 0.0% Utilities 1,312 1,340 - - - - 0.0% - 0.0% Interdepartmental Charges 6,477 48,390 26,135 - - (26,135) -100.0% - 0.0% Other Operating Transfers Out 2,021 2,207 - - - - 0.0% - 0.0% Total Expenditures 737,818$ 1,013,510$ 1,144,051$ -$ -$ (1,144,051)$ -100.0% -$ 0.0% Revenues Less Expenditures (737,818)$ (1,013,510)$ (1,144,051)$ -$ -$ Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Materials, Supplies & Maintenance - 9,796 727,398 771,254 771,254 43,856 6.0% - 0.0% Professional/Contract Services - 34,500 51,500 - - (51,500) -100.0% - 0.0% Capital Acquisitions - 109,028 - - - - 0.0% - 0.0% Total Expenditures -$ 153,323 $ 778,898 $ 771,254$ 771,254 $ (7,644)$ -1.0% -$ 0.0% 113

101
As shown in the summary table above, the $ 771,000 in the Materials, Supplies & Maintenance expenditure classification is proposed going into FY25-26 to cover the non-wage costs associated with increased efforts dedicated to addressing homelessness.

City Manager Staffing Budget Summary (General Fund and Non-General Funds)

The City Manager’s staffing budget is proposed a decrease of 2.05 FTE going into FY25-56, a net result of reorganization of the Communications Division (formerly known as the Cable Division).

The City Manager’s Communication Division is proposed to expand its focus on social media and other content creator duties better aligning with the current media environment . The Division proposes adding 1.0 FTE Management Associate position to support the operations of the division through the reorganization process as well as improve internal workflows and enhance service Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Administrative Assistant 3.00 1.00 3.25 3.00 3.00 (0.25) - Area G Executive Director 1.00 1.00 1.00 1.00 1.00 - - Assistant City Manager 1.00 1.00 1.00 1.00 1.00 - - Assistant to the City Manager 2.00 1.00 1.00 1.00 1.00 - - Cable & Comm Relations Manager 1.00 - - - - - - Cable TV Announcer 1.80 1.80 1.80 - - (1.80) - Cable TV Operations Asst 1.00 1.00 1.00 - - (1.00) - Cable TV Production Assis 4.50 4.50 4.50 - - (4.50) - Cable TV Production Supervisor 1.00 1.00 1.00 - - (1.00) - City Manager 1.00 1.00 1.00 1.00 1.00 - - Civil Service Manager 1.00 1.00 1.00 1.00 1.00 - - Community Television Supervisor 1.00 1.00 1.00 - - (1.00) - Content Creator - - - 2.00 2.00 2.00 - Deputy City Manager - 2.00 2.00 2.00 2.00 - - Deputy Finance Director 0.25 0.25 0.25 0.25 0.25 - - Economic Development Manager 1.00 1.00 1.00 1.00 1.00 - - Human Resources Analyst 1.00 1.00 1.00 1.00 1.00 - - Human Resources Technician 1.00 2.00 2.00 2.00 2.00 - - Intern II 2.00 1.00 1.00 1.00 1.00 - - Management Assistant 2.00 2.00 2.00 2.00 2.00 - - Management Associate 4.00 4.00 4.00 5.00 5.00 1.00 - Multimedia Production Coordinator - - - 1.00 1.00 1.00 - Office Assistant 2.25 2.25 - - - - - Producer Writer, Asst 1.00 1.00 1.00 - - (1.00) - Production Assistant - - - 4.50 4.50 4.50 - Senior Admin Assistant - 1.00 1.00 1.00 1.00 - - Senior Business Manager - 1.00 1.00 1.00 1.00 - - Staff Assistant 7.68 10.20 12.50 12.50 12.50 - - Supervising Admin Assistant 1.00 - - - - - - Supervising Content Creator - - - 1.00 1.00 1.00 - Supervising Producer/Writer 1.00 1.00 1.00 - - (1.00) - Total FTE 43.48 45.00 47.30 45.25 45.25 (2.05) - 114

102
delivery. As well, the Division proposes the conversion of 1.0 FTE Supervising Producer/Writer to a 1.0 FTE Supervising Content Creator , the conversion of 1.0 FTE Produc er Writer, Ass istant to 2.0 FTE Content Creators (addition of 1.0 FTE), the conversion of 1.0 FTE Cable TV Operations Assistant to 1.0 FTE Multimedia Production Coordinator, and the conversion of 4.50 FTE Cable TV Production Assistants to 4.50 FTE Production Assistant s to realign these positions with their new duties and prioritize growth within the division. Finally, the Division is proposing the elimination of 1.0 FTE Cable TV Production Supervisor , 1.0 FTE Community Television Supervisor , and 1.80 FTE Cable TV Announcer as these positions are vacant and no longer needed in the new vision of the Division’s reorganization.

Lastly, the proposed elimination of the 0.25 FTE Administrative Assistant is to re-align the budget to better reflect actual administrative activities in the City Manager’s Office.

115

103
City Treasurer

Department Organization

Mission Statement
The mission of the City Treasurer is to safeguard all City funds and manage the investment of surplus cash in accordance with the City’s investment policy.

Functional Responsibilities
Elected by the residents of Torrance, the City Treasurer is responsible for the investment of idle funds and for receiving and depositing all monies.

116

104
City Treasurer Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, the Salaries and Employee Benefits expenditure classification is proposed to increase by $16,100 (+4.8%) in FY25-26 and by $18,600 (+5.3%) in FY26 - 27, a net result of recently approved pay and benefit adjustments , CalPERS rates, and other various employee-related cost elements. The Professional/Contract Services classification is proposed to decrease by $54,400 (-53.9%) in FY25-26 and $33,950 (-72.8%) in FY26-27 primarily due to a one-time Treasury audit in FY24 -25. The proposed decrease in the Training, Travel & Membership Dues expenditure classification by $26,700 (-65.8%) in FY25 -26 is due to a one -time leadership course for the City Treasurer that was budgeted in FY24 -25, which was not expended and is not needed going forward.

City Treasurer Staffing Budget Summary (General Fund)

The City Treasurer’s staffing budget has no newly proposed changes, remaining at 2.0 FTE.

Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 262,000 312,521 334,159 350,296 368,857 16,137 4.8% 18,561 5.3% Materials, Supplies & Maintenance 2,264 1,936 3,045 2,910 2,910 (135) - 4.4% - 0.0% Professional/Contract Services 50,843 5,932 101,010 46,609 12,659 (54,401) -53.9% (33,950) -72.8% Training, Travel & Membership Dues 7,156 13,284 40,530 13,854 13,854 (26,676) -65.8% - 0.0% Liabilities, Settlements & Insurance - - - - - - 0.0% - 0.0% Utilities 29 - 500 - - (500) -100.0% - 0.0% Interdepartmental Charges 11,092 8,292 4,442 5,538 5,910 1,096 24.7% 372 6.7% Capital Acquisitions 3,898 - - - - - 0.0% - 0.0% Other Operating Transfers Out 1,512 1,171 - - - - 0.0% - 0.0% Total Expenditures 338,794$ 343,136$ 483,686$ 419,207$ 404,190$ (64,479) $ -13.3% (15,017) $ -3.6% Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
Increase/
(
Decrease)
FY26-27
Increase/
(
Decrease)
City Treasurer 1.00 1.00 1.00 1.00 1.00 - - Deputy City Treasurer 1.00 1.00 1.00 1.00 1.00 - - Total FTE 2.00 2.00 2.00 2.00 2.00 - - 117

105
Community Development

Department Organization

Mission Statement
The mission of the Community Development Department (“CDD”) is to guide and support the orderly development and revitalization of the City to maintain a balanced community to meet present and future needs.

Functional Responsibilities
The Community Development Department delivers a wide variety of programs and services related to planning, building & safety , engineering services, and neighborhood services to help create and maintain more safe, sustainable, and livable neighborhoods. They are responsible for overseeing Current and Long-Range Planning/Historic Preservation, Construction Plans, Building Permits & Inspections, Engineering Services, Public Works Inspections, Geographic Information System (GIS), Code Enforcement, Environmental/Noise Abatement, and Housing.

118

106
CDD Operating Budget Summary (General Fund-Operating Fund)

As shown in the table above, total revenue sources in FY25-26 are expected to decrease by $219,000 (-1.9%). This is primarily due to a decrease in the Charges for Services revenue classification, partially offset by an increase in the Licenses, Fees and Permits revenue classification. The Charges for Services revenue classification for FY25 -26 is anticipated to decrease by $ 806,000 ( 12.3%), primarily due to a realignment of the budget with actual receipts for plan check and inspection fees.

An increase of $602,000 (+12.5%) in FY25-26 from sources in the Licenses, Fees and Permits revenue classification is due to increases in plumbing, building, and electrical permit fees.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $ 1,2 million ( +12.9%), a net result of changes in the department’s budgeted staffing levels , recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. The Interdepartmental Charges expenditure classification is proposed to increase by $186,500 (+30.8%) primarily due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification. As such, there is a corresponding decrease in the Materials, Supplies & Maintenance classification of $168,000 ( -71.5%). In an effort to centralize the variability of fleet charges to the Fleet Services Fund, the City will be charging departments an annual flat rate (rather than an hourly based rate) based on average annual service cost and replacement cost for vehicles assigned to their departments.

The Professional/Contract Services expenditure classification is proposed to decrease $224,300 ( -

25.2%) due to a reduction in the contract for expedited plan checks (-$120,000) and a reclassification Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Licenses, Fees and Permits 5,222,123 4,917,685 4,809,133 5,411,000 5,573,330 601,867 12.5% 162,330 3.0% Fines, Forfeitures and Penalties 2,125 55,763 25,000 14,500 14,940 (10,500) -42.0% 440 3.0% Use of Money and Property 20,250 18,732 22,752 22,000 22,660 (752) -3.3% 660 3.0% Other Revenues 50,003 2,298 3,308 - - (3,308) -100.0% - 0.0% Charges for Services 5,730,923 7,002,970 6,559,288 5,753,410 5,925,620 (805,878) -12.3% 172,210 3.0% Operating Transfers In - - - - - - 0.0% - 0.0% Total Revenues 11,025,424$ 11,997,447$ 11,419,481$ 11,200,910$ 11,536,550$ (218,571)$ -1.9% 335,640$ 3.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 7,701,694 8,092,505 9,322,319 10,524,469 10,953,209 1,202,150 12.9% 428,740 4.1% Salaries and Benefits Reimbursements (339,190) (394,384) (249,000) (249,000) (249,000) - 0.0% - 0.0% Materials, Supplies & Maintenance 98,471 139,864 235,142 67,080 67,080 (168,062) -71.5% - 0.0% Professional/Contract Services 364,519 231,815 889,548 665,231 665,231 (224,317) -25.2% - 0.0% Training, Travel & Membership Dues 37,935 43,667 45,776 30,575 28,635 (15,201) -33.2% (1,940) -6.3% Liabilities, Settlements & Insurance - 1,531 37,000 - - (37,000) -100.0% - 0.0% Utilities 26,403 22,098 28,097 26,800 28,000 (1,297) -4.6% 1,200 4.5% Interdepartmental Charges 402,925 465,244 605,431 791,971 830,377 186,540 30.8% 38,406 4.8% Capital Acquisitions 2,199 - - - - - 0.0% - 0.0% Other Operating Transfers Out 46,469 38,794 - - - - 0.0% - 0.0% Total Expenditures 8,341,425$ 8,641,135$ 10,914,313$ 11,857,126$ 12,323,532$ 942,813$ 8.6% 466,406$ 3.9% Revenues Less Expenditures 2,683,999$ 3,356,313$ 505,168$ (656,216)$ (786,982)$ 119

107
of a contract for Geographic Information System (GIS) street imaging ( -$100,000) into the Capital Improvement Plan as a one-time effort cost.

CDD Operating Budget Summary (Air Quality Management District Fund)

The Air Quality Management District (AQMD) Fund summary table above shows a proposed increase of $2,800 (+1.4%) in total revenue sources, primarily driven by an increase in the Use of Money and Property revenue classification. This increase is partially offset by a decrease in the Intergovernmental revenue classification. The Use of Money and Property revenue classification for FY25 -26 is anticipated to grow by $4,200 (+35.5 %), mainly due to higher Investment Earnings.

Intergovernmental revenues are project ed to decrease by $1,400 ( -0.7%) in FY25 -26, primarily due to lower anticipated AQMD revenues.

The Salaries and Employee Benefits expenditure classification is projected to increase $ 8,200 (+6.6%), a net result of recently approved pay and benefit adjustments , CalPERS rates, and other various employee-related cost elements. Adjustments were also made to the fund’s proposed FY25- 26 operating budget in the Other Operating Transfers Out classification to fund capital investments in alternative fueling fleet and infrastructure.

120

108
CDD Operating Budget Summary (Low Mod Fund)

As shown in the summary table above, the Low Mod Fund’s total revenue is proposed to decrease by $40,000 (-100.0%) in FY25-26 and increase by $229,000 (100.0%) in FY26-27, which represents interest income related to Loans from the Low Mod Fund to Redevelopment Agency (RDA) Fund. Out of three remaining loans to RDA Fund, the first loan was paid off during FY24-25. Payments are required to be first applied to pay down principal before any interest is paid off, and one loan needs to be fully paid before payments are applied to the next loan. Because of this requirement, some years will only have principal payments, interest payments, or a combination of both. During FY25 -26, only principal payments are anticipated, thus, there is no budgeted interest income. As all the principal on the second loan will be fully paid off during FY26-27, it is expected that payments will start to be applied partially to interest during FY26-27; thus, there is budgeted interest income during FY26-27.

The proposed increase of $ 1,500 (+ 2.5%) in the Salaries and Employee Benefits expenditure classification is a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee-related cost elements. Adjustments were also made to the fund’s proposed FY25-26 operating budget in the Materials, Supplies & Maintenance expenditure classification to align the budget with anticipated activity in the coming fiscal year.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 179,323 168,411 40,450 - 228,623 (40,450) -100.0% 228,623 100.0% Operating Transfers In 1,250,670 - - - - - 0.0% - 0.0% Total Revenues 1,429,993$ 168,411$ 40,450$ -$ 228,623$ (40,450)$ -100.0% 228,623 $ 100.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 53,255 51,794 61,061 62, 578 65,719 1,517 2.5% 3,141 5.0% Materials, Supplies & Maintenance 3,000 3,000 4,000 7,760 - 3,760 94.0% (7,760) -100.0% Professional/Contract Services - - - - - - 0.0% - 0.0% Total Expenditures 56,255$ 54,794$ 65,061$ 70,338$ 65,719$ 5,277$ 8.1% (4,619)$ -6.6% Revenues Less Expenditures 1,373,738$ 113,617$ (24,611)$ (70,338)$ 162,904$ 121

109
CDD Operating Budget Summary (Meadow Park Parking Lot District Fund)

The Meadow Park Parking Lot District Fund summary table above includes minor adjustments in the Professional/Contract Services and Utilities expenditure classifications. These changes align the budget with anticipated FY25-26 activity.

CDD Operating Budget Summary (Section 8 Housing Fund)

As shown in the summary table above, total revenue sources for FY25-26 and FY26-27 are anticipated to increase by $356,000 (+4.0%) and $745,000 (+8.0%), respectively. These increases are primarily due to growth in the Intergovernmental revenue classification. Intergovernmental revenues are expected to rise by $336,000 (+3.7%) in FY25 -26 and by $744, 000 (+8.0%) in FY26 -27, reflecting the department’s successful efforts to expand its program, fully leverag ing available HUD funding, and facilitating the issuance of additional housing vouchers for the Torrance community.

The proposed increase of $ 58,000 ( +9.0%) in the Salaries and Employee Benefits expenditure classification is a net result of changes in the department’s budgeted staffing levels, recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 48,796 50,248 40,064 41,205 41,205 1,141 2.8% - 0.0% Operating Transfers In 104,070 - - - - - 0.0% - 0.0% Total Revenues 152,866$ 50,248$ 40,064$ 41,205$ 41,205$ 1,141$ 2.8% -$ 0.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Professional/Contract Services 24,744 24,573 28,564 29,705 29,705 1,141 4.0% - 0.0% Utilities 223 220 500 500 525 - 0.0% 25 5.0% Other Operating Transfers Out - - - - - - 0.0% - 0.0% Total Expenditures 24,967$ 24,792$ 29,064$ 30,205$ 30,230$ 1,141$ 3.9% 25$ 0.1% Revenues Less Expenditures 127,899$ 25,456$ 11,000$ 11,000$ 10,975$ Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 9,036 18,712 5,500 25,009 25,760 19,509 354.7% 751 3.0% Intergovernmental 6,808,227 8,272,478 8,968,000 9,304,000 10,048,322 336,000 3.7% 744,322 8.0% Other Revenues 6,516 21,649 16,000 16,300 16,300 300 1.9% - 0.0% Total Revenues 6,823,779$ 8,312,839$ 8,989,500$ 9,345,309$ 10,090,382$ 355,809$ 4.0% 745,073$ 8.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 487,871 592,594 648,922 707,169 736,933 58,247 9.0% 29,764 4.2% Materials, Supplies & Maintenance 6,327,056 7,416,193 7,971,986 8,296,821 9,017,572 324,835 4.1% 720,751 8.7% Professional/Contract Services 36,278 35,718 79,590 75,815 45,421 (3,775) -4.7% (30,394) -40.1% Training, Travel & Membership Dues 1,135 2,421 5,132 4,982 4,982 (150) -2.9% - 0.0% Interdepartmental Charges 116,819 140,057 160,049 166,014 171,287 5,965 3.7% 5,273 3.2% Capital Acquisitions - - - - - - 0.0% - 0.0% Total Expenditures 6,969,159$ 8,186,983$ 8,865,679$ 9,250,801$ 9,976,195$ 385,122$ 4.3% 725,394$ 7.8% Revenues Less Expenditures (145,380)$ 125,856$ 123,821$ 94,508$ 114,187$ 122

110
elements. The Materials, Supplies & Maintenance expenditure classification is proposed to increase $325,000 (4.1%) due to anticipated increases in Rental Assistance Payments as a result of the program expansion mentioned above.

CDD Operating Budget Summary (Redevelopment Agency Fund)

As shown in the Redevelopment Agency Fund summary table above, total revenue sources for FY25- 26 and FY26 -27 are anticipated to increase by $35 1,000 (+8.8%) and $ 12,000 (+0.3%), respectively.

These increases are primarily driven by growth in the Taxes revenue classification. Tax revenues are expected to rise by $3 55,000 (+ 9.4%) in FY25 -26 and by $ 12,000 (+0.3%) in FY26 -27, reflecting anticipated growth in current secured property taxes related to the City’s redevelopment area.

Proposed adjustments are being made in the Debt Service and Debt Service Reimbursements expenditure classifications to align the budget with anticipated FY25-26 activity.

CDD Operating Budget Summary (Vanpool Fund)

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
Increase/
(
Decrease)
FY25-26
Percent
C
hange
FY26-27
Increase/
(
Decrease)
FY26-27
Percent
C
hange
Taxes 3,406,911 4,126,386 3,790,000 4,144,678 4,156,255 354,678 9.4% 11,577 0.3% Use of Money and Property 993 2,130 8,500 5,040 5,191 (3,460) -40.7% 151 3.0% Other Financing Sources 189,766 189,766 189,768 189,768 189,768 - 0.0% - 0.0% Total Revenues 3,597,670$ 4,318,282$ 3,988,268$ 4,339,486$ 4,351,214$ 351,218$ 8.8% 11,728$ 0.3% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
Increase/
(
Decrease)
FY25-26
Percent
C
hange
FY26-27
Increase/
(
Decrease)
FY26-27
Percent
C
hange
Professional/Contract Services 6,130 10,490 13,500 - - (13,500) -100.0% - 0.0% Debt Service 2,853,295 2,847,086 2,878,453 2,817,179 2,803,453 (61,274) -2.1% (13,726) -0.5% Debt Service Reimbursements (1,370,000) (1,435,000) (1,515,000) (1,590,000) (1,665,000) (75,000) 5.0% (75,000) 4.7% Other Expenditures 250,000 250,000 25,000 25,000 25,000 - 0.0% - 0.0% Total Expenditures 1,739,425$ 1,672,576$ 1,401,953$ 1,252,179$ 1,163,453$ (149,774)$ -10.7% (88,726)$ -7.1% Revenues Less Expenditures 1,858,245$ 2,645,706$ 2,586,315$ 3,087,307$ 3,187,761$ Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property (10) (76) 965 (157) (161) (1,122) -116.3% (4) 2.5% Intergovernmental 40,201 33,033 35,000 50,000 51,500 15,000 42.9% 1,500 3.0% Charges for Services 26,634 35,015 30,000 32,000 32,960 2,000 6.7% 960 3.0% Operating Transfers In 173,723 142,102 179,906 179,906 179,906 - 0.0% - 0.0% Total Revenues 240,548$ 210,074$ 245,871$ 261,749$ 264,205$ 15,878$ 6.5% 2,456$ 0.9% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 121,096 110,104 111, 092 123,367 127,944 12,275 11.0% 4,577 3.7% Materials, Supplies & Maintenance 113,125 98,955 132,930 136,587 134,466 3,657 2.8% (2,121) -1.6% Professional/Contract Services 6,180 1,015 1,323 1,284 1,284 (39) -2.9% - 0.0% Training, Travel & Membership Dues 146 - 526 511 511 (15) -2.9% - 0.0% Total Expenditures 240,547$ 210,074$ 245,871$ 261,749$ 264,205$ 15,878$ 6.5% 2,456$ 0.9% Revenues Less Expenditures 1$ -$ -$ -$ -$ 123

111
As shown in the summary table above, total revenue sources for FY25-26 and FY26-27 are anticipated to increase by $16,000 (+6.5%) and $2,500 (+0.9%), respectively. These increases are primarily driven by growth in the Intergovernmental revenue classification. Intergovernmental revenues are expected to rise by $ 15,000 (+ 42.9%) in FY25 -26 and by $ 1,500 (+3.0%) in FY26 -27, reflecting anticipated growth in grant receipts.

The proposed increase of $ 12,000 (+11%) in the Salaries and Employee Benefits expenditure classification is a net result of changes in the department’s budgeted staffing levels, recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements.

124

112
CDD Staffing Budget Summary (General Fund and Non-General Funds)

The CDD staffing budget is proposed to increase by 3.0 FTE positions going into FY25 -26, including the addition of 1.0 FTE Permit Technician I position, 1.0 FTE Plans Examiner position, and 1.0 FTE Senior Building Inspector position. The Permit Technician I and Plans Examiner will assist the Permit Center, and its increased workload based on the number projects being submitted as well as ensuring Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Admin Project Aide 0.50 0.50 - - - - - Administrative Analyst 1.00 1.00 1.00 1.00 1.00 - - Administrative Assistant 3.00 3.00 3.00 3.00 3.00 - - Assistant Bldg Regulations Manager 1.00 1.00 - - - - - Assistant Engineer 5.00 5.00 5.00 5.00 5.00 - - Associate Engineer 1.00 1.00 1.00 1.00 1.00 - - Bldg Inspection Supervisor 1.00 1.00 1.00 1.00 1.00 - - Building Regulations Administrator 1.00 1.00 - - - - - Business Manager 1.00 1.00 - - - - - Building Official - - 1.00 1.00 1.00 - - Code Enforcement Officer - 4.00 3.00 3.00 3.00 - - Code Enforcement Officer, Sr - 2.00 1.00 1.00 1.00 - - Community Development Director 1.00 1.00 1.00 1.00 1.00 - - Electrical Inspector, Sr 1.00 1.00 1.00 1.00 1.00 - - Engineering Services Manager - - 1.00 1.00 1.00 - Engineering Technician I 3.00 3.00 3.00 3.00 3.00 - - Engineering Technician III 1.00 1.00 1.00 1.00 1.00 - - Environmental Qual Officer 5.00 2.00 3.00 3.00 3.00 - - Environmental Qual Officer, Sr 2.00 - 1.00 1.00 1.00 - - Housing Specialist 3.00 3.00 4.00 4.00 4.00 - - Housing Supervisor 1.00 1.00 1.00 1.00 1.00 - - Inspector, Building 2.00 2.00 2.00 2.00 2.00 - - Inspector, Mech & Plumbing, Sr 2.00 2.00 2.00 2.00 2.00 - - Inspector, Public Works 3.00 3.00 3.00 3.00 3.00 - - Neighborhood Services Manager 1.00 1.00 1.00 1.00 1.00 - - Permit Center Supervisor 1.00 1.00 1.00 1.00 1.00 - - Permit Technician I 4.00 4.00 4.00 5.00 5.00 1.00 - Permit Technician II 2.00 3.00 3.00 3.00 3.00 - - Planning Assistant 4.00 4.00 4.00 4.00 4.00 - - Planning Associate 7.50 8.00 8.00 8.00 8.00 - - Planning Manager - 2.00 2.00 2.00 2.00 - - Plans Examiner 3.00 4.00 4.00 5.00 5.00 1.00 - Principal Planner 2.00 - - - - - - Senior Building Inspector 3.00 3.00 3.00 4.00 4.00 1.00 - Senior Business Manager - - 1.00 1.00 1.00 - - Senior Planner - - 1.00 1.00 1.00 - - Supervising Admin Assistant 1.00 1.00 1.00 1.00 1. 00 - - Supervising Plans Examiner 1.00 1.00 1.00 1.00 1.00 - - Systems Analyst 1.00 1.00 1.00 1.00 1.00 - - Total FTE 69.00 72.50 74.00 77.00 77.00 3.00 - 125

113
the state-mandated permit review timelines are met. Finally, the Senior Building Inspector will be assigned to seismic inspections and, as time allows overflow inspections. 126

114
Community Services

Department Organization

Mission Statement
The Community Services Department is committed to providing quality services, activities, programs and facilities for all those who live, learn, work and play in the City of Torrance, creating and enriching community through people, programs and partnerships.

Functional Responsibilities
The Community Services Department offers Torrance residents the unique opportunity to help achieve a sense of purpose, identity, self -worth and improved self -esteem within the specialized areas of Cultural Arts, Library, Parks and Recreation. As a professi onal organization, each of our dedicated team members strive daily to deliver services to our community with integrity, honesty, and respect for all users. In all our services, we strive to foster lifelong learning and personal development, with a goal of cultivating joy, delight and wonder. In addition, we embrace the vision that "Parks Make Life Better" for everyone.

127

115
Community Services Operating Budget Summary (General Fund-Operating Fund)

As shown in the table above, total revenue sources in FY25-26 are anticipated to increase by $583,000 (+9.6%). This is primarily driven by an increase in the Charges for Services revenue classification, partially offset by a decrease in the Licenses, Fees and Permits revenue classification. The Charges for Services revenue classification for FY25 -26 is expected to rise by $631,000 (+12.1%), largely due to anticipated increases in recreation services, farmers’ market activity, and contract class fees.

Conversely, revenue from the Licenses, Fees and Permits revenue classification is projected to decrease by $95,000 (-44.2%) in FY25-26 to better align budget with actual receipts.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $1.3 million (+7.6%), as a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. The Interdepartmental Charges expenditure classification is proposed to increase by $854,000 (+59.2%) primarily due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification. As such, there is a corresponding decrease in the Materials, Supplies & Maintenance classification of $98 3,000 ( -

23.7%). In an effort to centralize the variability of fleet charges to the Fleet Services Fund, the city will be charging departments an annual flat rate (rather than an hourly based rate) based on average annual service cost and replacement cost for vehicles assigned to their departments.

The Professional/Contract Services expenditure classification is proposed to increase by $530, 000 (27.7%) to reflect increases in costs of $145,000 for Animal Control services from the Los Angeles Department of Animal Control Services, $250,000 for deferred tree maintenance, $50,000 for capital Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Licenses, Fees and Permits 225,098 106,059 215, 000 120,000 120,000 (95,000) -44.2% - 0.0% Use of Money and Property 547,535 623,507 623,765 671,400 691,550 47,635 7.6% 20,150 3.0% Intergovernmental (3,379) - - - - - 0.0% - 0.0% Other Revenues 63,439 79,737 - - - - 0.0% - 0.0% Charges for Services 4,416,736 5,269,886 5,207,992 5,838,740 5,986,490 630,748 12.1% 147,750 2.5% Operating Transfers In - 38,260 - - - - 0.0% - 0.0% Total Revenues 5,249,429$ 6,117,449$ 6,046,757$ 6,630,140$ 6,798,040$ 583,383$ 9.6% 167,900$ 2.5% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 13,867,422 15,220,961 17, 219,354 18,526,530 19,333,479 1,307,176 7.6% 806,949 4.4% Salaries and Benefits Reimbursements (8,058) (5,731) - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 2,652,798 3,258,368 4,149,145 3,166,510 3,192,203 (982,635) -23.7% 25,693 0.8% Materials Reimbursements (172,785) (69,952) (138,334) (138,334) (138,334) - 0.0% - 0.0% Professional/Contract Services 1,218,107 1,610,918 1,916,180 2,446,310 2,397,772 530,130 27.7% (48,538) -2.0% Training, Travel & Membership Dues 14,764 39,594 94,459 89,721 88,786 (4,738) -5.0% (935) -1.0% Liabilities, Settlements & Insurance 60,277 12,857 28,500 - - (28,500) -100.0% - 0.0% Utilities 1,951,923 1,844,175 1,792,751 2,084,500 2,188,600 291,749 16.3% 104,100 5.0% Interdepartmental Charges 1,656,013 1,197,153 1,442,041 2,295,995 2,406,769 853,954 59.2% 110,774 4.8% Capital Acquisitions 20,837 9,691 73,500 72,750 72,750 (750) -1.0% - 0.0% Other Operating Transfers Out 96,716 76,858 - - - - 0.0% - 0.0% Total Expenditures 21,358,014$ 23,194,892$ 26,577,596$ 28,543,982$ 29,542,025$ 1,966,386$ 7.4% 998,043$ 3.5% Revenues Less Expenditures (16,108,585)$ (17,077,443)$ (20,530,839)$ (21,913,842)$ (22,743,985)$ 128

116
project cost estimating services, and $100,000 for a non -recurring operational assessment study on Library Services.

The Utilities expenditure classification is proposed to increase by $29 2,000 (+16.3%) to fund additional wireless network hotspots supporting the Library Outreach programs and forecasted increases to utility consumption and rates.

129

117
Community Services Staffing Budget Summary (General Fund)

The Community Services staffing budget has no newly proposed changes, remaining at 205.15 FTE.

Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Administrative Analyst 1.00 1.00 1.00 1.00 1.00 - - Administrative Assistant 4.00 5.00 5.00 5.00 5.00 - - Aide, Environmental 0.50 - - - - - - Animal Control Officer 2.00 - - - - - - Aquatics Instructor 4.70 1.68 1.68 1.68 1.68 - - Aquatics Program Coordinator 1.00 - - - - - - Assistant City Librarian 2.00 2.00 1.00 1.00 1.00 - - City Librarian 1.00 1.00 1.00 1.00 1.00 - - Community Services Director 1.00 1.00 1.00 1.00 1.00 - - Cultural Services Manager 1.00 1.00 1.00 1.00 1.00 - - Farmers' Market Manager 1.00 1.00 1.00 1.00 1.00 - - Home Impr Prog Coordinator 1.00 1.00 1.00 1.00 1.00 - - Home Impr Prog Supervisor 1.00 1.00 1.00 1.00 1.00 - - Instructor I 3.10 1.00 1.00 1.00 1.00 - - Instructor II 1.20 0.43 1.43 1.43 1.43 - - Lead Maintenance Worker 15.00 15.00 15.00 15.00 15.00 - - Lead Ranger - 2.00 2.00 2.00 2.00 - - Librarian 13.00 13.00 13.00 13.00 13.00 - - Library Page 13.50 10.50 10.50 10.50 10.50 - - Library Technician 13.50 13.50 13.50 13.50 13.50 - - Lifeguard 3.10 5.77 5.77 5.77 5.77 - - Maintenance Worker 20.50 20.50 21.00 21.00 21.00 - - Nature Center Mgr/Naturalist 1.00 1.00 1.00 1.00 1.00 - - Office Assistant 1.00 - - - - - - Park Services Supervisor 3.00 3.00 3.00 3.00 3.00 - - Parks Services Manager 1.00 1.00 1.00 1.00 1.00 - - Pest Control Technician 1.00 1.00 1.00 1.00 1.00 - - Pool Cashier - Clerk 0.40 - - - - - - Pool Locker Room Attendant 3.00 - - - - - - Pool Manager, Assistant 2.00 1.06 1.06 1.06 1.06 - - Program Coordinator 5.80 6.00 4.00 4.00 4.00 - - Program Leader 45.96 36.16 20.99 20.99 20.99 - - Program Specialist 17.96 17.73 21.04 21.04 21.04 - - Ranger Supervisor 1.00 1.00 1.00 1.00 1.00 - - Recreation Services Manager 1.00 1.00 1.00 1.00 1.00 - - Recreation Supervisor 6.00 5.00 7.00 7.00 7.00 - - Recreation Supvsr, Sr 5.00 4.00 4.00 4. 00 4.00 - - Senior Admin Assistant 1.00 - - - - - - Senior Business Manager - 1.00 1.00 1.00 1.00 - - Senior Librarian 4.00 4.00 6.00 6.00 6.00 - - Senior Library Page 5.50 5.50 5.50 5.50 5.50 - - Senior Library Technician 9.00 9.00 8.00 8.00 8.00 - - Senior Program Specialist 7.84 7.57 18.89 18.89 18.89 - - Staff Assistant 0.80 0.80 0.80 0.80 0.80 - - Supervising Admin Assistant - 1.00 1.00 1.00 1.00 - - Total FTE 227.36 204.19 205.15 205.15 205.15 - - 130

118
Finance

Department Organization

Mission Statement
The mission of the Finance Department is to safeguard the City’s fiscal health and stability by managing resources responsibly and delivering timely, accurate financial guidance and reporting to the City Council, staff, and the broader Torrance community.

Functional Responsibilities
The Finance Department is charged with preserving the City’s fiscal health and long-term stability by overseeing key financial operations. These responsibilities include budgeting, accounting, and auditing of City funds; procuring goods and services through an open and competitive process; issuing business licenses ; and managing the billing and collection of revenues owed to the City.

The department develops and administers both the operating and capital improvement budgets and prepares the City’s Annual Comprehensive Financial Report (ACFR) in accordance with Governmental Accounting Standards Board (GASB ) guidelines. In addition, the Finance Department manages the City’s risk management and workers’ compensation programs, with a focus on minimizing financial exposure and controlling costs.

131

119
Finance Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, the Salaries and Employee Benefits expenditure classification is proposed to increase by $ 685,000 ( +15.2%), a net result of changes in the department’s staffing modification, recently approved pay and benefit adjustments , CalPERS rates, and other various employee-related cost elements. The Professional/Contract Services expenditure classification is proposed to decrease by $664,000 (-46.0%) due to changes in the transfer of software contracts to the IT Department as part of a software consolidation plan to better support city wide software maintenance and cybersecurity threats ( -$420k), the elimination of a o ne-time forensic review requested by Council for FY24-25 (-$45k), and a transfer of court fees related to parking tickets to the Police Department, who now processes the fees (-$157k). The Training, Travel & Membership Dues expenditure classification is proposed to increase by $1 9,000 (+43.7%) as part of efforts in the Strategic Plan to support staff training.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Charges for Services - 9,390 - - - - 0.0% - 0.0% Total Revenues -$ 9,390$ -$ -$ -$ -$ 0.0% -$ 0.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 3,925,220 4,132,138 4,521,193 5,206,311 5,433,495 685,118 15.2% 227,184 4.4% Salaries and Benefits Reimbursements (81,000) (133,000) (19,000) (19,000) (19,000) - 0.0% - 0.0% Materials, Supplies & Maintenance 57,773 62,655 80,512 75,463 74,008 (5,049) -6.3% (1,455) -1.9% Materials Reimbursements (122) (34) - - - - 0.0% - 0.0% Professional/Contract Services 1,267,686 1,448,191 1,441,177 777,515 747,032 (663,662) -46.0% (30,483) -3.9% Training, Travel & Membership Dues 21,881 27,216 42,608 61,207 62,662 18,599 43.7% 1,455 2.4% Utilities 1,554 1,176 2,088 1,400 1,500 (688) -33.0% 100 7.1% Interdepartmental Charges 138,333 141,694 179,510 193,192 206,072 13,682 7.6% 12,880 6.7% Capital Acquisitions 31,254 22,807 15,000 15,000 15,000 - 0.0% - 0.0% Other Operating Transfers Out 26,950 22,176 - - - - 0.0% - 0.0% Total Expenditures 5,389,529$ 5,725,019$ 6,263,088$ 6,311,088$ 6,520,769$ 48,000$ 0.8% 209,681$ 3.3% Revenues Less Expenditures (5,389,529)$ (5,715,629)$ (6,263,088)$ (6,311,088)$ (6,520,769)$ 132

120
Finance Operating Budget Summary (Self-Insurance Fund)

As shown in the summary table above, the Charges for Services revenue classification is proposed to increase by $520,000 (+2.2%) due to additional contributions from all departments to balance the overall budget. The Salaries and Employee Benefits expenditure classification is proposed to increase by $22,000 (2.0%), a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. The increase of $ 684,000 ( +3.7%) in the Liabilities, Settlements & Insurance expenditure classification reflects anticipated increases in insurance premiums and costs pertaining to future claims and settlements.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Other Revenues 188,193 142,795 - - - - 0.0% - 0.0% Charges for Services 17,121,527 20,928,012 23,659,000 24,178,667 25,778,667 519,667 2.2% 1,600,000 6.6% Operating Transfers In 7,000,000 2,000,000 - - - - 0.0% - 0.0% Total Revenues 24,309,720$ 23,070,807$ 23,659,000$ 24,178,667$ 25,778,667$ 519,667$ 2.2% 1,600,000$ 6.6% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 801,646 841,389 1,083,179 1,104,986 1,161,910 21,807 2.0% 56,924 5.2% Materials, Supplies & Maintenance 7,696 7,833 24,000 24,000 21,000 - 0.0% (3,000) -12.5% Professional/Contract Services 507,107 495,796 505,000 512,250 531,938 7,250 1.4% 19,688 3.8% Training, Travel & Membership Dues 5,628 11,745 11,600 16,000 16,000 4,400 37.9% - 0.0% Liabilities, Settlements & Insurance 19,078,985 20,843,692 18,654,469 19,338,224 20,619,547 683,755 3.7% 1,281,323 6.6% Utilities 220 565 750 700 700 (50) -6.7% - 0.0% Interdepartmental Charges - 205,161 235,890 305,658 318,991 69,768 29.6% 13,333 4.4% Other Operating Transfers Out 6,951 4,354 - - - - 0.0% - 0.0% Bad Debts and Other Losses (4,198,068) (1,336,175) 3,000,000 3,000,000 3,090,000 - 0.0% 90,000 3.0% Total Expenditures 16,210,165$ 21,074,360$ 23,514,888$ 24,301,818$ 25,760,086$ 786,930$ 3.3% 1,458,268$ 6.0% Revenues Less Expenditures 8,099,555$ 1,996,447$ 144,112$ (123,151)$ 18,581$ 133

121
Finance Staffing Budget Summary (General Fund and Non-General Fund)

The Finance staffing budget has a proposed position modification resulting in a net zero FTE change for FY25-26, including the elimination of 1.0 FTE Senior Accountant position and the addition of 1.0 FTE Accounting Supervisor position. The Finance Department has struggled to hire for the Senior Accountant position and has worked to update the title and position duties to better attract capable candidates to the City.

Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Account Clerk 5.00 4.00 4.00 4.00 4.00 - - Accountant 6.00 5.00 5.00 5.00 5.00 - - Accountant, Senior 3.00 3.00 3.00 2.00 2.00 (1.00) - Accounting Manager 1.00 1.00 1.00 1.00 1.00 - - Accounting Supervisor - - - 1.00 1.00 1.00 - Accounting Technician 5.00 4.00 4.00 4.00 4.00 - - Administrative Analyst 1.00 1.00 1.00 1.00 1.00 - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 - - Assistant Finance Director 1.00 1.00 1.00 1.00 1.00 - - Budget Supervisor - 1.00 1.00 1.00 1.00 - - Buyer 1.00 1.00 1.00 1.00 1.00 - - Claims Technician 3.00 3.00 2.00 2.00 2.00 - - Deputy Finance Director 0.75 0.75 1.25 1.25 1.25 - - Finance Director 1.00 1.00 1.00 1.00 1.00 - - License Supervisor 1.00 1.00 1.00 1.00 1.00 - - Payroll Specialist 2.00 3.00 3.00 3.00 3.00 - - Revenue Manager 1.00 1.00 1.00 1.00 1.00 - - Risk Manager - 1.00 1.00 1.00 1.00 - - Senior Admin Assistant 1.00 1.00 1.00 1.00 1.00 - - Senior Business Manager 3.00 2.00 1.00 1.00 1.00 - - Senior Buyer 1.00 1.00 1.00 1.00 1.00 - - Staff Assistant - 1.00 1.00 1.00 1.00 - - Workers' Comp Claims Examiner 2.00 2.00 1.00 1.00 1.00 - - Workers Comp Manager 1.00 1.00 1.00 1.00 1.00 - - Total FTE 40.75 40.75 38.25 38.25 38.25 - - 134

122
Fire

Department Organization

Mission Statement
The mission of the Fire Department is to serve with excellence through preparedness, response, and engagement.

Functional Responsibilities
The Fire Department is responsible for ensuring the safety of life and property from fires, explosions, hazardous conditions, and natural disasters occurring within the City of Torrance; the inspection and correction of any fire or life hazard found; the enforcement of the penal provisions of ordinances of the city and laws of the State and Federal governments; the investigation, gathering, and preservation evidence; apprehension and prosecution of arsonists; education of the public on fire prevention, fire safety, cardiopulmonary resuscitation (CPR), and first aid; and providing emergency medical care for life-threatening or traumatic injuries.

135

123
Fire Operating Budget Summary (General Fund-Operating Fund)

As shown in the table above, total revenue sources for FY25 -26 and FY26-27 are expected to increase by $556,000 (+4.1%) and $549,000 (+3.9%), respectively. These increases are primarily attributable to anticipated growth in the Charges for Services and Operating Transfers In revenue classifications.

The Charges for Services revenue classification is expected to rise by $44 3,000 (+4.0%) in FY25 -26 and $437,000 (+3.8%) in FY26-27. This is mainly due to higher revenues in emergency transport, plan check, and annual fire inspection fees. Operating Transfers In are anticipated to increase by $94,000 (+4.4%) and $104,000 (+4.7%) in FY25-26 and FY26-27, respectively, driven by increased transfers from Measure SST.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $ 2.6 million (+4.4%), a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements . The Interdepartmental Charges expenditure classification is proposed to increase by $ 303,000 (+4.2%) primarily due to a reclassification of Fleet Service Fund charges of $1.7 million to the Interdepartmental Charges classification. As such, there is a corresponding decrease in the Materials, Supplies & Maintenance classification. In an effort to centralize the variability of fleet charges to the Fleet Services Fund, the city will be charging departments an annual flat rate (rather than an hourly based rate) based on average annual service cost and replacement cost for vehicles assigned to their departments. This increase is partially offset by a $1.4 million reduction in Self -Insurance Fund contributions resulting from lower claim counts and claim costs during the five-year lookback period.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Licenses, Fees and Permits 212,986 230,474 210,000 250,000 257,500 40,000 19.0% 7,500 3.0% Other Revenues 11,206 - 20,000 - - (20,000) -100.0% - 0.0% Charges for Services 8,513,144 10,846,381 11,178,044 11,620,500 12,057,430 442,456 4.0% 436,930 3.8% Operating Transfers In 1,807,785 1,852,980 2,121,088 2,214,815 2,319,083 93,727 4.4% 104,268 4.7% Total Revenues 10,545,121$ 12,929,835$ 13,529,132$ 14,085,315$ 14,634,013$ 556,183$ 4.1% 548,698$ 3.9% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 49,212,061 51,928,553 58,666,588 61,261,397 64,145,982 2,594,809 4.4% 2,884,585 4.7% Salaries and Benefits Reimbursements (1,375) (26,049) (1,580,000) (1,000,000) (1,000,000) 580,000 -36.7% - 0.0% Materials, Supplies & Maintenance 2,135,237 2,278,957 2,934,631 1,195,220 1,198,615 (1,739,411) -59.3% 3,395 0.3% Materials Reimbursements (1,140) (2,078) (175,000) (75,000) (75,000) 100,000 -57.1% - 0.0% Professional/Contract Services 886,053 1,108,876 1,420,545 1,375,026 1,375,026 (45,519) -3.2% - 0.0% Training, Travel & Membership Dues 101,204 148,217 172,200 167,041 167,041 (5,159) -3.0% - 0.0% Liabilities, Settlements & Insurance 36,794 - 10,000 - - (10,000) -100.0% - 0.0% Utilities 220,310 238,760 252,470 249,600 262,000 (2,870) -1.1% 12,400 5.0% Interdepartmental Charges 3,604,987 4,411,183 7,146,908 7,449,774 7,817,454 302,866 4.2% 367,680 4.9% Debt Service 242,703 242,703 242,703 242,703 242,703 - 0.0% - 0.0% Capital Acquisitions 179,610 131,994 263,000 239,500 239,500 (23,500) -8.9% - 0.0% Other Operating Transfers Out 60,792 55,195 - - - - 0.0% - 0.0% Total Expenditures 56,677,236$ 60,516,311$ 69,354,045$ 71,105,261$ 74,373,321$ 1,751,216$ 2.5% 3,268,060$ 4.6% Revenues Less Expenditures (46,132,115)$ (47,586,476)$ (55,824,913)$ (57,019,946)$ (59,739,308)$ 136

124
Fire Staffing Budget Summary (General Fund)

The Fire staffing budget has no newly proposed changes, remaining at 203.0 FTE.

125
General Services

Department Organization

Mission Statement
The mission of the General Services Department is to provide quality services that support City departments in a manner which enable s them to carry -out their community missions and to provide these services at a cost -effective and efficient manner that best serves the operational needs of City departments and the community.

Functional Responsibilities
The General Services Department maintains all City building s and building systems in a presentable and clean condition and provides a healthy and comfortable environment within the buildings that meets the operational needs for City Departments and the community. The General Services Department is also responsible for Airport Administration, Building Maintenance, Central Services, Cultural Arts Center Administration, Custodial Services, Fleet Services/ Warehouse , Graffiti Abatement Program, HVAC/Electrical Services, and Capital Projects.

138

126
General Services Operating Budget Summary (General Fund-Operating Fund)

As shown in the table above, total revenue sources for FY25 -26 and FY26 -27 are anticipated to decrease by $119,000 (-10.5%) and increase by $3 1,000 (+3.0%), respectively. These fluctuations are due to changes within the Charges for Services revenue classification. This trend is largely driven by anticipated changes in rental activity for meeting rooms and theaters at the Cultural Arts Center.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $787,000 (+10.9%). This reflects net changes in the department’s budgeted staffing levels, recently approved or anticipated adjustments to pay and benefits, updated CalPERS rates, and other employee-related cost factors. The Materials, Supplies & Maintenance expenditure classification is proposed to increase by $266, 000 (+13.6%), due to an increase of $404,000 to address needed city repairs and improvements (paint, maintenance and repair for HVAC, plumbing, and elevators), partially offset by a decrease of $122,000 due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification. T here is a corresponding $135,000 increase in the Interdepartmental Charges classification, as an effort to centralize the variability of fleet charges to the Fleet Services Fund. This increase in Interdepartmental Charges is offset by a $177,000 decrease in Self Insurance Fund contributions resulting from lower claim counts and claim costs during the five-year lookback period.

The Professional/Contract Services classification is proposed to decrease $241,000 ( -22.8%) in FY25–26, with $90,000 of the reduction attributed to decreased theater production support , and $140,000 related to a one-time expense related to a contract for El Nido Park design that occurred in FY24-25. Lastly, t he Capital Acquisitions expenditure classification is proposed to increase by Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Other Revenues - - - - - - 0.0% - 0.0% Charges for Services 981,678 978,228 1,136,049 1,016,700 1,047,200 (119,349) -10.5% 30,500 3.0% Operating Transfers In - - - - - - 0.0% - 0.0% Total Revenues 981,678$ 978,228$ 1,136,049$ 1,016,700$ 1,047,200$ (119,349)$ -10.5% 30,500$ 3.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 6,094,573 6, 183,119 7,199,570 7,986,709 8,321,026 787,139 10.9% 334,317 4.2% Salaries and Benefits Reimbursements (40,608) (56,741) (70,000) (70,000) (70,000) - 0.0% - 0.0% Materials, Supplies & Maintenance 1,206,484 1,695,465 1,966,166 2,232,594 2,232,594 266,428 13.6% - 0.0% Materials Reimbursements (131,931) (170,897) (90,000) (180,000) (180,000) (90,000) 100.0% - 0.0% Professional/Contract Services 926,703 746,256 1,058,138 817,150 902,025 (240,988) -22.8% 84,875 10.4% Training, Travel & Membership Dues 3,294 8,819 17,080 25,784 25,784 8,704 51.0% - 0.0% Utilities 803,348 942,799 977,377 1,012,550 1,063,000 35,173 3.6% 50,450 5.0% Interdepartmental Charges 570,440 578,008 868,188 825,576 871,044 (42,612) -4.9% 45,468 5.5% Capital Acquisitions 4,500 129,672 73,634 150,000 150,000 76,366 103.7% - 0.0% Other Operating Transfers Out 19,424 15,689 - - - - 0.0% - 0.0% Total Expenditures 9,456,227$ 10,072,189$ 12,000,153$ 12,800,363$ 13,315,473$ 800,210$ 6.7% 515,110$ 4.0% Revenues Less Expenditures (8,474,549)$ (9,093,961)$ (10,864,104)$ (11,783,663)$ (12,268,273)$ 139

127
$76,000 (+103.7%) to fund the purchase of additional portable generators for emergency power generation at selected City facilities.

General Services Operating Budget Summary (Airport Fund)

As shown in the summary table above, total revenue sources for FY25 -26 are anticipated to increase by $2.7 million (+14.7%), primarily driven by growth in the Use of Money and Property and Other Revenues revenue classifications. The Use of Money and Property revenue classification for FY25 - 26 is expected to rise by $1.6 million (+9.0%), mainly due to higher basic rent payments required from auto agencies and increased investment earnings. An increase of $1.1 million (+220.0%) from sources in the Other Revenues classification is largely due to increased reimbursements related to on-going legal matters.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $ 66,000 (+4.2%), a net result of recently approved pay and benefit adjustments , CalPERS rates, and other various employee -related cost elements. The Professional/Contract Services expenditure classification is proposed to decrease in FY25-26 by $632,000 (-24.8%) for expenses related to the legal matters. The Utilities expenditure classification is proposed to increase by $50,000 (+22.7%) due to expected electricity rate and consumption increases. The Interdepartmental Charges expenditure classification is proposed to increase by $80,000 (+12.8%) due to a reclassification of Fleet Service Fund charges that were previously budgeted in the Materials, Supply & Maintenance expenditure classification, as an effort to centralize the variability of fleet charges to the Fleet Services Fund . The Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 22,615,645 18,770,802 17,372,473 18,943,864 19,498,549 1,571,391 9.0% 554,685 2.9% Other Revenues 1,001,657 1,213,766 500,000 1,600,000 1,600,000 1,100,000 220.0% - 0.0% Charges for Services 269,580 307,940 469,853 500,260 508,820 30,407 6.5% 8,560 1.7% Operating Transfers In - - - - - - 0.0% - 0.0% Total Revenues 23,886,882$ 20,292,508$ 18,342,326$ 21,044,124$ 21,607,369$ 2,701,798$ 14.7% 563,245$ 2.7% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 1,396,320 1,294,117 1,556,604 1,622,106 1,696,177 65,502 4.2% 74,071 4.6% Salaries and Benefits Reimbursements - - - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 85,596 201,454 136,587 121,667 126,517 (14,920) -10.9% 4,850 4.0% Materials Reimbursements (652) - - - - - 0.0% - 0.0% Professional/Contract Services 1,332,785 4,342,187 2,551,600 1,919,249 1,924,099 (632,351) -24.8% 4,850 0.3% Training, Travel & Membership Dues 5,152 1,096 11,923 13,551 13,551 1,628 13.7% - 0.0% Depreciation and Amortization 240,600 260,581 260,582 275,000 283,250 14,418 5.5% 8,250 3.0% Liabilities, Settlements & Insurance 6,291 - - - - - 0.0% - 0.0% Utilities 203,921 218,768 220,946 271,100 284,600 50,154 22.7% 13,500 5.0% Interdepartmental Charges 557,362 668,916 624,115 703,892 734,450 79,777 12.8% 30,558 4.3% Asset Contra Account - - - - - - 0.0% - 0.0% Other Operating Transfers Out 19,824,107 10,599,014 12,741,785 19,051,016 16,671,061 6,309,231 49.5% (2,379,955) -12.5% Bad Debts and Other Losses 23,678 - 15,000 25,000 25,750 10,000 66.7% 750 3.0% Total Expenditures 23,675,160$ 17,586,133$ 18,119,142$ 24,002,581$ 21,759,455$ 5,883,439$ 32.5% (2,243,126)$ -9.3% Revenues Less Expenditures 211,722$ 2,706,375$ 223,184$ (2,958,457)$ (152,086)$ 140

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Other Operating Transfers Out expenditure is projected to increase by $6.3 million (+49.5%) due to a $1.1 million increase in transfers to the General Fund related to an increase in non -aeronautical lease revenues, and a $5.3 million increase in transfers to the Airport Capital Fund for the renovation of airport hangars and taxiway lighting replacement.

General Services Operating Budget Summary (Fleet Services Fund)

As shown in the summary table above, total revenue sources are proposed to increase by $1.9 million (14.5%), primarily due to a $2.5 million (36.5%) increase in the Charges for Services revenue classification, offset by a $5 80,000 decrease ( -9.1%) in the Use of Money and Property revenue classification. The increase in Charges for Services i s proposed primarily due to a change in accounting for the maintenance of city vehicles that centralizes these costs and cover the increasing cost of parts, fuel , and labor. Beginning in FY25 –26, the City is proposing a revised approach to charging departments for fleet vehicle costs. Rather than passing through individual expenses for parts, fuel, maintenance labor, and other materials, departments are now assessed a single, consolidated monthly vehicle usage (rental) charge (flat rate) . This change simplifies accounting, improves cost predictability, and streamlines the budgeting and forecasting process across all departments. The decrease in Use of Money and Pro perty reflects a $1.1 million decrease in Investment Earnings due to a reclassification of investment earnings to be recognized in the General Fund rather than the Fleet Services Fund . This decrease is partially offset by a $485,000 increase in vehicle “rent” charged to the departments.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 3,481,962 5, 851,896 6,362,859 5,782,968 5,957,303 (579,891) -9.1% 174,335 3.0% Other Revenues 59,264 88,276 80,464 75,000 77,250 (5,464) -6.8% 2,250 3.0% Charges for Services 3,838,860 5,836,156 6,896,676 9,411,648 9,693,999 2,514,972 36.5% 282,351 3.0% Operating Transfers In 18,474,274 2,200,000 - - - - 0.0% - 0.0% Total Revenues 25,854,360$ 13,976,328$ 13,339,999$ 15,269,616$ 15,728,552$ 1,929,617$ 14.5% 458,936$ 3.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 2,768,033 3, 303,960 3,977,670 4,458,515 4,650,038 480,845 12.1% 191,523 4.3% Materials, Supplies & Maintenance 218,319 1,643,087 787,487 2,898,477 2,903,327 2,110,990 268.1% 4,850 0.2% Materials Reimbursements - - (500,000) (200,000) (200,000) 300,000 -60.0% - 0.0% Parts, Fuel & Lubricants Inventory Purchases 2,646,366 3,264,332 3,213,628 3,213,628 3,213,628 - 0.0% - 0.0% Parts, Fuel & Lubricants Contra (2,646,366) (3,089,192) (3,210,628) (3,213,628) (3,213,628) (3,000) 0.1% - 0.0% Professional/Contract Services 65,471 184,867 205,334 40,691 40,691 (164,643) -80.2% - 0.0% Training, Travel & Membership Dues 22,655 14,135 54,075 29,585 29,585 (24,490) -45.3% - 0.0% Depreciation and Amortization 1,199,372 1,363,228 1,712,016 2,750,000 2,832,500 1,037,984 60.6% 82,500 3.0% Liabilities, Settlements & Insurance - - 16,880 - - (16,880) -100.0% - 0.0% Utilities 1,909 2,182 2,600 1,200 1,200 (1,400) -53.8% - 0.0% Interdepartmental Charges 432,983 1,001,375 2,237,427 2,292,195 2,333,857 54,768 2.4% 41,662 1.8% Debt Service 30,445 (21,047) - - - - 0.0% - 0.0% Capital Acquisitions 966,226 3,947,199 26,453,133 9,533,500 4,935,000 (16,919,633) -64.0% (4,598,500) -48.2% Asset Contra Account (966,226) (3,471,678) (26,548,410) (9,483,500) (4,885,000) 17,064,910 -64.3% 4,598,500 -48.5% Other Operating Transfers Out 496,730 674,580 360,143 728,478 1,468,882 368,335 102.3% 740,404 101.6% Bad Debts and Other Losses 34,411 32,637 - - - - 0.0% - 0.0% Total Expenditures 5,270,328$ 8, 849,665$ 8,761,355$ 13,049,141$ 14,110,080$ 4,287,786$ 48.9% 1,060,939$ 8.1% Revenues Less Expenditures 20,584,032$ 5, 126,663$ 4,578,644$ 2,220,475$ 1,618,472$ 141

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The Salaries and Employee Benefits expenditure classification is proposed to increase by $481,000 (+12.1%), a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee-related cost elements . The Materials, Supplies & Maintenance expenditure classification is projected to increase by $ 2.1 million ( +268.1%), mainly due to the change in accounting for the maintenance of city vehicles that centralizes these costs, to fund increased parts and fuel costs associated with added vehicles to the fleet, and the anticipated increases in the cost of parts and fuel. The Professional/Contract Services classification is proposed to decrease by $165,000 (-80.2%) due to the reduction of one-time expenditures related to electrical vehicle charger installations and consolidation of software programs with the IT Department . Depreciation & Amortization is proposed to increase by $1.0 million (60.6%) due to newly acquired vehicles.

The Capital Acquisitions and Asset Contra Account expenditure classifications reflect the purchase of replacement and additional vehicles required by the City departments. A summary of the proposed vehicle purchases in FY25-56 is as follows:
• Police 36 vehicles (SUV’s, sedans, other)
• Public Works 28 vehicles (dump tracks, sweepers, aerial lifts, other) • Fire 8 vehicles (Heavy fire truck, ambulances, other) • Transit 5 vehicles (vans, utility, other)
• Community Services 4 vehicles (utility, pickup truck) • Community Development 3 vehicles (sedans)
• General Services 3 vehicles (utility, pickup truck) • City Manager 2 vehicles (vans)
Total 89 vehicles

The Other Operating Transfers Out expenditure is projected to increase by $ 368,000 ( +102.3%), primarily due to the increase in transfers to Fleet Capital Project Fund for motor and mower shop exhaust installation and the removal/replacement of the vehicle loading dock. 142

130
General Services Staffing Budget Summary (General Fund and Non-General Funds)

Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Accounting Technician 1.00 1.00 1.00 1. 00 1.00 - - Admin Services Manager 1.00 1.00 1.00 1.00 1.00 - - Administrative Analyst 1.00 1.00 1.00 1.00 1.00 - - Administrative Assistant 3.00 3.00 5.00 5.00 5.00 - - Air Con/Heat/Elec Supervisor 1.00 1.00 1.00 1.00 1.00 - - Air Condition/Heat Technician 3.00 3.00 3.00 3.00 3.00 - - Airport Worker 4.00 4.00 4.00 4.00 4.00 - - Booking Manager 1.00 1.00 1.00 1.00 1.00 - - Booking Manager, Asst 0.50 0.50 0.50 0.50 0.50 - - Bookkeeper 1.00 1.00 1.00 1.00 1.00 - - Box Office Attendant 2.10 2.10 0.75 0.75 0.75 - - Box Office Manager 1.00 1.00 1.00 1.00 1.00 - - Building Maintainer 6.00 6.00 6.00 6.00 6.00 - - Building Maintainer, Sr 1.00 1.00 1.00 1.00 1.00 - - Building Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 - - Capital Projects Construction Superintendent - 1.00 2.00 2.00 2.00 - - Central Services Coordinator 1.00 1.00 1.00 1.00 1.00 - - Central Services Supervisor 1.00 1.00 1.00 1.00 1.00 - - Custodian 18.00 17.00 17.00 18.00 18.00 1.00 - Custodian, Senior 2.00 2.00 2.00 2.00 2.00 - - Customer Service Rep 2.00 2.00 2.00 2.00 2.00 - - Driver/Clerk, Delivery 1.50 1.50 1.50 1.50 1.50 - - Electrician 2.00 2.00 2.00 2.00 2.00 - - Equipment Attendant 4.00 4.00 4.00 4.00 4.00 - - Facilities Service Supervisor 1.00 1.00 1.00 1.00 1.00 - - Facility Operations Attend, Sr 4.00 4.00 3.00 3.00 3.00 - - Facility Operations Attendant 6.00 5.00 5.00 5.00 5.00 - - Facility Operations Chief 1.50 1.50 1.50 1.50 1.50 - - Facility Operations Manager 1.00 1.00 1.00 1.00 1.00 - - Fleet Services Manager 1.00 1.00 1.00 1.00 1.00 - - Fleet Services Supervisor 2.00 2.00 2.00 2.00 2.00 - - General Services Director 1.00 1.00 1.00 1.00 1.00 - - Graphic Designer 2.00 2.00 2.00 2.00 2.00 - - Intern II - 1.00 - - - - - Lead Airport Worker 1.00 1.00 1.00 1.00 1.00 - - Mechanic 7.00 7.00 7.00 7.00 7.00 - - Mechanic, Senior 9.00 9.00 9.00 9. 00 9.00 - - Office Assistant 3.00 2.00 - - - - - Program Coordinator 1.00 1.00 1.00 1.00 1.00 - - Reprographic Specialist 3.00 3.00 3.00 3.00 3.00 - - Senior Admin Assistant 1.00 1.00 1.00 1.00 1.00 - - Senior Box Office Attendant 1.60 1.60 0.40 0.40 0.40 - - Senior Building Inspector 1.00 - - - - - - Senior Business Manager 4.00 4.00 4.00 4.00 4.00 - - Staff Assistant 1.00 1.00 2.00 2.00 2.00 - - Stage Manager 1.10 1.10 0.10 0.10 0.10 - - Storekeeper 2.00 3.00 3.00 3.00 3.00 - - Storekeeper, Auto Parts 1.00 1.00 1.00 1.00 1.00 - - Theater Technician 1.30 1.30 3.00 3.00 3.00 - - Theatre Technical Coord 1.20 1.20 - - - - - Theatre Technical Director 1.00 1.00 1.00 1.00 1.00 - - Warehouse Supervisor 1.00 1.00 1.00 1.00 1.00 - - Welder, Senior 1.00 1.00 1.00 1.00 1.00 - - Total FTE 120.80 119.80 116.75 117.75 117.75 1.00 - 143

131

The General Services staffing budget is proposed to increase by 1.0 FTE Custodian that is being transferred from the Transit Department. This results in a net zero impact to the City.

144

132
Human Resources

Department Organization

Mission Statement
The mission of the Human Resources Department is to attract, develop, and retain an exceptional workforce in partnership with other City departments.

Functional Responsibilities
The Human Resources (HR) Department is responsible for managing the employee lifecycle, from recruitment to retirement. It encompasses a wide range of functions aimed at maximizing employee performance and ensuring that the organization can achieve its goals effectively. HR involves onboarding, strategic planning, employee development, benefits, compensation, employee wellness, employee relations and engagement, retention, compliance with labor laws, strategic workforce planning, diversity and inclusion, and fostering a positive workplace culture.

145

133
Human Resources Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, the Salaries and Employee Benefits expenditure classification is proposed to increase by $ 323,000 ( +16.1%), a net result of changes in the department’s budgeted staffing levels, recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements . The proposed increase in the Materials, Supplies & Maintenance expenditure classification is primarily driven by cost s associated with employee-related city-wide events such as the annu al employee recognition picnic, health fair, and service awards. The Professional/Contract Services expenditure classification is proposed to decrease by $321,000 (40.8%) due to a reduction in expected investigation costs based on historical and projected activities. The Interdepartmental Charges expenditure classification is proposed to increase by $87,300 (+111.3%) due to the Self-Insurance Fund contribution, as the contribution factor for each department is updated based on the historical claim counts and expenditures during the five-year lookback period.

Human Resources Staffing Budget Summary (General Fund)

The Human Resources staffing budget is proposed to increase by 2.0 FTE positions going into FY25-26, including the addition of a 1.0 FTE Principal Human Resources Analyst position and a 1.0 FTE Human Resources Technician. These positions are being transferred from the Transit Department and have a zero net impact to the City.

Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 1,376,018 1,395,430 1,998,080 2, 320,767 2,433,395 322,687 16.1% 112,628 4.9% Materials, Supplies & Maintenance 220,558 249,352 311,041 332,073 332,073 21,032 6.8% - 0.0% Materials Reimbursements (5,990) - - - - - 0.0% - 0.0% Professional/Contract Services 435,756 553,153 786,099 465,074 465,074 (321,025) -40.8% - 0.0% Training, Travel & Membership Dues 49,744 57,689 66,780 69,840 69,840 3,060 4.6% - 0.0% Utilities 2,391 2,838 3,780 2,000 2,100 (1,780) -47.1% 100 5.0% Interdepartmental Charges 23,370 145,160 78,403 165,675 176,716 87,272 111.3% 11,041 6.7% Other Operating Transfers Out 8,724 6,532 - - - - 0.0% - 0.0% Total Expenditures 2,110,571 $ 2,410,154 $ 3,244,183 $ 3,355,429 $ 3,479,198 $ 111,246$ 3.4% 123,769 $ 3.7% Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Administrative Assistant 2.00 1.00 2.00 2.00 2.00 - - Human Resources Analyst 4.00 2.00 3.00 3.00 3.00 - - Human Resources Director 1.00 1.00 1.00 1.00 1.00 - - Human Resources Technician 2.00 4.00 5.00 6.00 6.00 1.00 - Office Assistant 1.00 1.00 - - - - - Principal Human Resources Analyst 1.00 2.00 2.00 3.00 3.00 1.00 - Staff Assistant - 1.00 1.00 1.00 1.00 - - Total FTE 11.00 12.00 14.00 16.00 16.00 2.00 - 146

134
Information Technology

Department Organization

Mission Statement
The mission of the Information Technology Department (“IT”) is to strategically plan and support all communication and automation needs of the City in an accountable and responsive manner.

They provide effective technology solutions to serve the dynamic and diverse needs of the community and City of Torrance employees.

Functional Responsibilities
The Department oversees computer hardware systems, data and telecommunications infrastructure, data management, information security, radio and wireless communications, software and applications, and telephone and voice systems. 147

135
IT Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, the Operating Transfers In revenue source for FY25 -26 and FY26-27 are expected to increase by $5, 000 (+2.5%) and by $10, 000 (+5.0%), respectively. These increases are driven by anticipated transfers from the Measure SST Fund.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $ 1.4 million ( +22.5%), a net result of changes in the Department’s budgeted staffing levels , recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. The Professional/Contract Services expenditure classification is proposed to increase $515,000 (+22.5%) due to the consolidation of software programs from various departments including the City Manager’s Office, Finance, and Human Resources that will allow the IT Department to better manage the infrastructure and cybersecuri ty impact to the City. The Utilities expenditure classification is proposed to decrease by $159,200 ( -36.7%) to better align budget with actuals. The Interdepartmental Charges expenditure classification is proposed to increase by $45,000 (+22.9%) due to a reclassification of Fleet Service Fund charges that were previously budgeted in the Materials, Supply & Maintenance expenditure classification , as an effort to centralize the variability of fleet charges to the Fleet Services Fund.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Operating Transfers In - 175,000 200, 415 205,520 215,703 5,105 2.5% 10,183 5.0% Total Revenues -$ 175,000$ 200,415$ 205,520$ 215,703$ 5,105$ 2.5% 10,183$ 5.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 5,235,686 5,239,041 6, 046,087 7,408,221 7,729,389 1,362,134 22.5% 321,168 4.3% Salaries and Benefits Reimbursements - - - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 206,793 193,566 249,516 244,478 246,923 (5,038) -2.0% 2,445 1.0% Materials Reimbursements - - - - - - 0.0% - 0.0% Professional/Contract Services 1,494,487 1,591,969 2,293,885 2,808,904 2,656,857 515,019 22.5% (152,047) -5.4% Training, Travel & Membership Dues 91,045 31,313 52,500 60,626 60,626 8,126 15.5% - 0.0% Liabilities, Settlements & Insurance - - - - - - 0.0% - 0.0% Utilities 235,892 240,351 433,718 274,500 288,100 (159,218) -36.7% 13,600 5.0% Interdepartmental Charges 139,739 138,635 198,229 243,595 256,361 45,366 22.9% 12,766 5.2% Capital Acquisitions 800 27,235 40,976 11,550 - (29,426) -71.8% (11,550) -100.0% Other Operating Transfers Out 81,809 62,570 - - - - 0.0% - 0.0% Total Expenditures 7,486,252$ 7,524,680$ 9,314,911$ 11,051,874$ 11,238,256$ 1,736,963$ 18.6% 186,382$ 1.7% Revenues Less Expenditures (7,486,252)$ (7,349,680)$ (9,114,496)$ (10,846,354)$ (11,022,553)$ 148

136
IT Operating Budget Summary (General Fund-Measure SST Fund)

As shown in the summary table above, the $815,000 (-1.2%) for FY25-26 in the Professional/Contract Services expenditure classification is proposed to cover the non -wage costs associated with efforts dedicated to addressing cybersecurity.

IT Staffing Budget Summary (General Fund)

The Information Technology Department proposes a net increase of 5.0 Full -Time Equivalent (FTE) positions through strategic realignment with the Police Department and internal restructuring to enhance operational efficiency. This includes transferring 5.0 FTE positions from the Police Department - comprising 2.0 Information Technology Specialists, 2.0 Information Technology Analysts, and 1.0 Systems Analyst.

Internally, the department will consolidate its Communications Divisions by merging Wireless and Telecom Communication Supervisor roles (2.0) into a single 1.0 FTE Communications Supervisor position. Additional adjustments include converting a 1.0 Storekeeper position into a 1.0 Information Technology Specialist, replacing 2.0 Telecommunications Technicians with 2.0 Wireless Technicians, and adding new roles of 1.0 Information Technology Manager and 1.0 Project Manager to meet Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Professional/Contract Services 158,705 361,552 825, 000 814,800 814,800 (10,200) -1.2% - 0.0% Total Expenditures 158,705$ 361,552$ 825,000$ 814,800$ 814,800$ (10,200)$ -1.2% -$ 0.0% Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Administrative Analyst 1.00 1.00 1.00 1.00 1.00 - - Administrative Assistant 1.00 1.00 - - - - - Communication Supv/Wireless 1.00 1.00 1.00 - - (1.00) - Communications Supv/Telecomm 1.00 1.00 1.00 - - (1.00) - Communications Manager 1.00 - - - - - - Communications Supervisor - - - 1.00 1.00 1.00 - Info Tech Specialist 6.00 5.00 5.00 8.00 8.00 3.00 - Info Technology Analyst 7.00 6.00 6.00 8.00 8.00 2.00 - Info Technology Director 1.00 1.00 1.00 1.00 1.00 - - Information Technology Manager 1.00 3.00 4.00 5.00 5.00 1.00 - Intern 0.50 1.00 1.00 1.00 1.00 - - Project Manager - - - 1.00 1.00 1.00 - Senior Admin Assistant 1.00 1.00 2.00 1.00 1.00 (1.00) - Storekeeper 1.00 1.00 1.00 - - (1.00) - Systems Analyst 9.00 10.00 10.00 11.00 11.00 1.00 - Telecommunications Tech 2.00 2.00 2.00 - - (2.00) - Wireless Technician 4.00 4.00 4.00 6.00 6.00 2.00 - Total FTE 37.50 38.00 39.00 44.00 44.00 5.00 - 149

137
increasing demands in customer service, cybersecurity, and GIS, and implementing the City’s upcoming Enterprise Resource Planning (ERP) project along with several other efforts. Furthermore, the elimination of 1.0 Senior Administrative Assistant position underscores the department’s commitment to administrative efficiency. Collectively, these changes reflect a focused effort to streamline operations, align staffing with evolving citywide needs, and enhance the depa rtment’s effectiveness.
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138
Police

Department Organization

Mission Statement
The mission of the Torrance Police Department is to preserve public safety and quality of life within the City of Torrance, respond effectively to the changing needs of the community, and promote mutual respect between the Police Department and the community.

Functional Responsibilities
The Police Department is responsible for enforcing the penal provisions of the City Charter, City ordinances, and State and Federal laws for the purpose of protecting persons and property and the preservation of peace within the community. The Department e ngages in patrol, crime prevention, investigation of crimes, apprehension of criminals, gathering of evidence, custody of prisoners, rehabilitation of offenders, regulation of traffic, investigation of traffic collisions, custody of property, coordination of all major disaster plans, and all such training and support necessary for these activities.
151

139
Police Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, total revenue sources for FY25-26 and FY26-27 are expected to increase by $ 1.1 million (+10.2%) and by $ 0.6 million (+5.2%), respectively. These increases are primarily attributed to increases within the Operating Transfers In revenue classification , largely driven by anticipated transfers from Measure SST to maintain sworn position staffing levels . The Charges for Services revenue classification for FY25 -26 is anticipated to decrease by $0.1 million ( -

23.7%), primarily due to a realignment of the budget with actual receipts for residential false alarm fees.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $ 9.9 million (+11.6%) in FY25-26, and $5.1 million (+5.4%) in FY26 -27, and is a net result of changes in the department’s budgeted staffing levels, recently approved pay and benefit adjustments, as well as CalPERS rates increase, and other various employee -related cost elements. The proposed decrease of $1.9 million ( -72.4%) in the Materials, Supplies & Maintenance expenditure classification is due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification.

As such, there is a corresponding increase of $1.3 million in the Interdepartmental Charges expenditure classification. In an effort to centralize the variability of fleet charges to the Fleet Services Fund, the City will be charging departments an annual flat rate (rather than an hourly based rate) based on average annual service cost and replacement cost for vehicles assigned to their departments.

The Interdepartmental Charges increase is also due to increase in the Self-Insurance Fund contribution, as the contribution factor for each department is updated based on the historical claim counts and expenditures during the five -year lookback period. Lastly, the proposed d ecrease in the Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Licenses, Fees and Permits 370,702 319,059 195,000 314,000 323,420 119,000 61.0% 9,420 3.0% Intergovernmental 70,701 18,875 65,969 19,750 20,340 (46,219) -70.1% 590 3.0% Other Revenues 2,445 2,118 - - - - 0.0% - 0.0% Charges for Services 304,754 368,818 483,673 369,200 380,300 (114,473) -23.7% 11,100 3.0% Operating Transfers In 8,587,595 8,802,285 9,847,116 10,966,238 11,547,555 1,119,122 11.4% 581,317 5.3% Total Revenues 9,336,197$ 9,511,155$ 10,591,758$ 11,669,188$ 12,271,615$ 1,077,430$ 10.2% 602,427$ 5.2% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 75,954,731 75,257,758 85,671,803 95,608,248 100,731,855 9,936,445 11.6% 5,123,607 5.4% Salaries and Benefits Reimbursements (112,612) (226,631) (310,000) (260,000) (260,000) 50,000 -16.1% - 0.0% Materials, Supplies & Maintenance 1,639,675 2,239,506 2,586,602 714,938 714,938 (1,871,664) -72.4% - 0.0% Materials Reimbursements (22,328) (17,085) (11,397) (11,397) (11,397) - 0.0% - 0.0% Professional/Contract Services 2,219,325 2,066,707 4,084,976 3,272,935 3,176,032 (812,041) -19.9% (96,903) -3.0% Training, Travel & Membership Dues 497,349 540,261 462,500 468,025 468,025 5,525 1.2% - 0.0% Liabilities, Settlements & Insurance 289,050 49,235 40,000 - - (40,000) -100.0% - 0.0% Utilities 431,711 433,404 514,564 509,600 535,100 (4,964) -1.0% 25,500 5.0% Interdepartmental Charges 5,777,273 7,618,827 8,690,246 10,345,471 10,955,270 1,655,225 19.0% 609,799 5.9% Other Operating Transfers Out 4,073 3,088 - - - - 0.0% - 0.0% Total Expenditures 86,678,247$ 87,965,070$ 101,729,294$ 110,647,820$ 116,309,823$ 8,918,526$ 8.8% 5,662,003$ 5.1% Revenues Less Expenditures (77,342,050)$ (78,453,915)$ (91,137,536)$ (98,978,632)$ (104,038,208)$ 152

140
Professional/Contract Services expenditure classification of $812,000 (-19.9%) is due to $204,000 of software costs being reclassed to the IT department, and $ 300,000 of one -time legal costs that occurred in FY2024-25.

Police Operating Budget Summary (Traffic Safety Fund)

The Traffic Safety Fund was established to separately account for remittances from the County of Los Angeles for court, traffic, and general fines revenues. The operating budget for this fund is balanced with proposed FY25-26 revenue and expenditure budgets set at $ 70,950 to fund contract services related to the Professional/Contract Services expenditure classification for as-needed crossing guard services.

141
Police Staffing Budget Summary (General Fund)

The Police Department’s staffing budget is proposed to decrease by 5.0 FTE as part of the realignment with the IT Department to better support public safety city -wide. This will result in a net zero impact to the City’s budget.

142
Public Works

Department Organization

Mission Statement
The mission of the Public Works Department is to provide a superior level of public service and interdepartmental support in the most practical and competent manner possible. Through innovative methods, the Public Works Department seeks to ensure reliable infrastructure systems and a healthy environment that collectively contribute to the overall mission of the City.

Functional Responsibilities
The Public Works Department provides services to Torrance residents, businesses, and other City departments via six (6) Divisions: Administration; Engineering; Sanitation; Streetscape; Street Operations; and Water Operations. The Department is responsible for: customer service and funding management; civil and traffic engineering; refuse and recycling; sewer and wastewater systems; s treet sweeping; city trees and landscaping; traffic signals; street maintenance; and potable water quality and distribution. The Department also oversees the Traffic Commission and Water Commission.
155

143
Public Works Operating Budget Summary (General Fund-Operating Fund)

As shown in the summary table above, total revenue sources for FY25-26 and FY26-27 are expected to increase by $548,000 (+12.2%) and $44,000 (+0.9%), respectively. These increases are primarily driven by anticipated growth in the Charges for Services and Operating Transfers In revenue classifications. The Charges for Services revenue classification is expected to rise by $ 293,000 (+109.7%) in FY25 -26 and by $17,000 (+3.0%) in FY26 -27, largely due to higher revenues from traffic signal maintenance fees. The Operating Transfers In revenue classification is expected to increase by $261,000 (+6.2%) in FY25 -26 and by $27,000 (+0.6%) in FY26 -27, primarily reflecting additional transfers from the Sanitation Fund to support the City’s street sweeping program.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $1.2 million (+ 12.4%), a net result of changes in the department’s budgeted staffing levels, recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. A reduction of $100,000 (-100.0%) in the Liabilities, Settlements & Insurance expenditure classification is being proposed in an effort to centralize claims and settlement costs in the Self - Insurance Fund. The proposed decrease of $1.6 million ( -48.3%) in the Materials, Supplies & Maintenance expenditure classification is due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification. As such, there is a corresponding increase of $2.2 million in the Interdepartmental Charges expenditure classification. In an effort to centralize the variability of fleet charges to the Fleet Services Fund, the city will be charging departments an annual flat rate (rather than an hourly based rate) based on average annual service cost and replacement cost for vehicles assigned to their departments. The additional increase in Interdepartmental Charges is due to a $630,000 increase in the Self-Insurance Fund contribution, as the contribution Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Other Revenues 91,961 120,056 6,083 - - (6,083) -100.0% - 0.0% Charges for Services 230,762 252,073 267,151 560,110 576,910 292,959 109.7% 16,800 3.0% Operating Transfers In 3,406,980 4,179,358 4,228,071 4,489,141 4,516,151 261,070 6.2% 27,010 0.6% Total Revenues 3,729,703$ 4,551,487$ 4,501,305$ 5,049,251$ 5,093,061$ 547,946$ 12.2% 43,810$ 0.9% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 8,420,944 8,716,569 9,600,365 10,786,017 11,252,041 1,185,652 12.4% 466,024 4.3% Salaries and Benefits Reimbursements (155,377) (120,950) (172,500) (172,500) (172,500) - 0.0% - 0.0% Materials, Supplies & Maintenance 2,448,203 2,967,244 3,381,431 1,747,306 1,745,172 (1,634,125) -48.3% (2,134) -0.1% Materials Reimbursements (90,290) (59,271) (65,000) (65,000) (65,000) - 0.0% - 0.0% Professional/Contract Services 1,026,614 1,628,721 2,237,560 2,224,397 2,224,397 (13,163) -0.6% - 0.0% Training, Travel & Membership Dues 6,891 3,792 61,361 55,729 55,729 (5,632) -9.2% - 0.0% Liabilities, Settlements & Insurance 282,285 79,950 100,000 - - (100,000) -100.0% - 0.0% Utilities 861,540 854,288 981,199 936,700 983,500 (44,499) -4.5% 46,800 5.0% Interdepartmental Charges 3,330,978 4,184,830 4,782,077 7,619,998 7,981,050 2,837,921 59.3% 361,052 4.7% Capital Acquisitions 46,036 289,689 105,000 204,375 204,375 99,375 94.6% - 0.0% Other Operating Transfers Out 92,687 31,833 - - - - 0.0% - 0.0% Total Expenditures 16,270,511$ 18,576,695$ 21,011,493$ 23,337,022$ 24,208,764$ 2,325,529 $ 11.1% 871,742$ 3.7% Revenues Less Expenditures (12,540,808)$ (14,025,208)$ (16,510,188)$ (18,287,771)$ (19,115,703)$ 156

144
factor for each department is updated based on the historical claim counts and expenditures during the five-year lookback period.

Public Works Operating Budget Summary (Sanitation Fund)

As shown in the summary table above, total revenue sources in FY25-26 are expected to decrease by $59,000 (-0.3%), primarily due to changes in the Charges for Services, Operating Transfers In, and Licenses, Fees and Permits revenue classifications. While the Charges for Services revenue classification is expected to increase by $2.1 million (+13.8%) in FY25 -26, largely driven by higher rubbish charges, this gain is offset by declines in the other two classifications. The Operating Transfers In revenue classification is anticipated to decrease by $1.7 million ( -81.6%) due to the consolidation of the Sanitation Vehicle Replacement Fund into the Sanitation O perating Fund. The Licenses, Fees and Permits revenue classification is expected to decline by $0.5 million ( -48.3%), mainly due to a reduction in solid waste franchise fees.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $116,000 (+2.5%), a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. The proposed decrease of $ 2.6 million ( -67.3%) in the Materials, Supplies & Maintenance expenditure classification is due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification. As such, there is a corresponding increase in the Interdepartmental Charges expenditure classification of $2.8 million.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Licenses, Fees and Permits 1,002,147 1,137,249 1,128,063 583,350 600,850 (544,713) -48.3% 17,500 3.0% Use of Money and Property 250,977 115,071 294,000 335,298 345,357 41, 298 14.0% 10,059 3.0% Other Revenues 114,770 148,604 125,000 110,000 113,300 (15,000) -12.0% 3,300 3.0% Charges for Services 12,582,254 14,629,714 15,339,406 17,457,220 18,842,580 2,117,814 13.8% 1,385,360 7.9% Operating Transfers In 2,698,962 10,839,111 2,032,346 373,829 385,046 (1,658,517) -81.6% 11,217 3.0% Total Revenues 16,649,110$ 26,869,749$ 18,918,815$ 18,859,697$ 20,287,133$ (59,118)$ -0.3% 1,427,436$ 7.6% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 3,888,009 3,926,386 4,716,434 4,832,863 5,041,968 116,429 2.5% 209,105 4.3% Salaries and Benefits Reimbursements (10,032) (9,509) - - - - 0.0% - 0.0% Materials, Supplies & Maintenance 3,284,641 3,157,704 3,886,729 1,271,962 1,267,597 (2,614,767) -67.3% (4,365) -0.3% Materials Reimbursements (185,905) (247,758) (150,000) (250,000) (250,000) (100,000) 66.7% - 0.0% Professional/Contract Services 2,812,667 3,725,720 5,022,008 4,669,139 4,779,088 (352,869) -7.0% 109,949 2.4% Training, Travel & Membership Dues 2,610 1,323 82,300 69,355 69,355 (12,945) -15.7% - 0.0% Depreciation and Amortization 945,178 873,796 1,095,493 1,200,000 1,236,000 104,507 9.5% 36,000 3.0% Liabilities, Settlements & Insurance 26,672 41,780 60,000 - - (60,000) -100.0% - 0.0% Utilities 3,004 1,567 4,190 4,400 4,600 210 5.0% 200 4.5% Interdepartmental Charges 1,560,630 3,211,434 2,067,676 5,735,913 5,977,969 3,668,237 177.4% 242,056 4.2% Debt Service 79,852 (38,645) 90,000 - - (90,000) -100.0% - 0.0% Capital Acquisitions 446,737 446,737 9,426,543 6,288,000 2,505,000 (3,138,543) -33.3% (3,783,000) -60.2% Asset Contra Account (446,737) (470,592) (9,382,966) (6,288,000) (2,505,000) 3,094,966 -33.0% 3,783,000 -60.2% Other Operating Transfers Out 2,404,057 11,718,337 3,134,975 1,746,020 1,773,030 (1,388,955) -44.3% 27,010 1.5% Bad Debts and Other Losses - 97,430 52,860 50,000 51,500 (2,860) -5.4% 1,500 3.0% Total Expenditures 14,811,383$ 26,435,710$ 20,106,242$ 19,329,652$ 19,951,107$ (776,590)$ -3.9% 621,455$ 3.2% Revenues Less Expenditures 1,837,727$ 434,039$ (1,187,427)$ (469,955)$ 336,026$ 157

145
In an effort to centralize the variability of fleet charges to the Fleet Services Fund, the City will be charging departments an annual flat rate (rather than an hourly based rate) based on average annual service cost and replacement cost for vehicles assigned to their departments. The additional increase in Interdepartmental Charges is due to a $ 0.7 million increase in the Self -Insurance Fund contribution, as the contribution factor for each department is updated based on the historical claim counts and expenditures during the five-year lookback period.

A decrease of $3.1 million ( -33.3%) in the Capital Acquisitions is to align the budget with planned asset purchase s and a decrease of $1.4 million ( -44.3%) in the Other Operating Transfers Out expenditure classification is due to the consolidation of the vehicle replacement fund into the operating fund.

Public Works Operating Budget Summary (Sewer Fund)

As shown in the table above, total revenue sources in FY25 -26 are expected to decrease by $415,000 (-4.8%), primarily due to changes in the Charges for Services , Operating Transfers In , and Use of Money and Property revenue classifications. While the Charges for Services revenue classification is expected to increase by $238, 000 (+3.3%) in FY25 -26, largely driven by higher sewer charges, this gain is offset by declines in the other two classifications. The Operating Transfers In revenue classification is an ticipated to decrease by $516,200 ( -93.5%) due to the consolidation of the Sewer Vehicle Replacement Fund into the Sewer Operating Fund. The Use of Money and Property revenue classification is expected to decline by $97, 000 million ( -13.9%), mainly due to a reduction in investment earnings.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 142,924 531,746 699,000 601,771 619,824 (97,229) -13.9% 18,053 3.0% Other Revenues 13,459 31,327 50,000 10,000 10,300 (40,000) -80.0% 300 3.0% Charges for Services 5,885,583 6,875,943 7,315,073 7,553,510 7,780,120 238,437 3.3% 226,610 3.0% Operating Transfers In 527,677 611,184 552,009 35,827 36,902 (516,182) -93.5% 1,075 3.0% Total Revenues 6,569,643$ 8,050,200$ 8,616,082$ 8,201,108$ 8,447,146$ (414,974)$ -4.8% 246,038$ 3.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 1,675,358 1,612,081 1,956,558 2,065,769 2,160,178 109,211 5.6% 94,409 4.6% Materials, Supplies & Maintenance 295,645 329,093 348,642 196,305 197,275 (152,337) -43.7% 970 0.5% Materials Reimbursements (72) (5,892) - - - - 0.0% - 0.0% Professional/Contract Services 661,238 323,518 509,250 456,871 492,761 (52,379) -10.3% 35,890 7.9% Training, Travel & Membership Dues 1,918 1,754 15,246 12,368 12,368 (2,878) -18.9% - 0.0% Depreciation and Amortization 134,931 93,094 214,625 1,350,000 1,390,500 1,135,375 529.0% 40,500 3.0% Utilities 60,888 85,296 97,557 93,083 97,800 (4,474) -4.6% 4,717 5.1% Interdepartmental Charges 653,523 713,950 744,053 1,027,196 1,065,952 283,143 38.1% 38,756 3.8% Capital Acquisitions - 249,747 4,423,355 69,000 25,000 (4,354,355) -98.4% (44,000) -63.8% Asset Contra Account - (249,747) (4,423,355) (69,000) (25,000) 4,354,355 -98.4% 44,000 -63.8% Other Operating Transfers Out 1,747,052 2,988,972 1,917,662 1,900,000 1,400,000 (17,662) -0.9% (500,000) -26.3% Bad Debts and Other Losses - 30,583 20,000 30,000 30,900 10,000 50.0% 900 3.0% Total Expenditures 5,230,481$ 6,172,449$ 5,823,593$ 7,131,592$ 6,847,734$ 1,307,999 $ 22.5% (283,858)$ -4.0% Revenues Less Expenditures 1,339,162$ 1,877,751$ 2,792,489$ 1,069,516$ 1,599,412$ 158

146
The Salaries and Employee Benefits expenditure classification is projected to increase by $109,000 (+5.6%), a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. The proposed decrease of $ 152,000 (- 43.7%) in the Materials, Supplies & Maintenance expenditure classification is due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification. As such, there is a corresponding increase in the Interdepartmental Charges expenditure classification of $187,000.

The Capital Acquisitions and Asset Contra Account classifications are proposed to decrease by $4.4 million to align the budget with planned asset purchase level.

It should be noted that the proposed increase of $1.1 million in the Depreciation and Amortization expenditure classification occurs each fiscal year as part of the Sewer Fund’s proposed operating budget for depreciation expense s and has then transferred back to the Sewer Capital Fund. Going forward, the depreciation expense will be recorded in the operating fund to better represent the cost of the fund.

Public Works Operating Budget Summary (Water Fund)

As shown in the summary table above, total revenue sources for FY25-26 and FY26-27 are anticipated to increase by $ 7.0 million ( +12.7%) and $ 4.1 million (+6.7%), respectively. These increases are primarily driven by changes in the Charges for Services revenue classification, which is expected to Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 727,785 1,927,037 1,281,000 2, 005,039 2,064,686 724,039 56.5% 59,647 3.0% Other Revenues 67,060 157,891 5,000 50,000 50,000 45,000 900.0% - 0.0% Charges for Services 54,187,955 53,815,855 53,095,000 59,689,460 63,754,760 6,594,460 12.4% 4,065,300 6.8% Operating Transfers In 395,077 361,528 422,501 24,388 25,120 (398,113) -94.2% 732 3.0% Total Revenues 55,377,877$ 56,262,311$ 54,803,501$ 61,768,887$ 65,894,566$ 6,965,386 $ 12.7% 4,125,679$ 6.7% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 4,853,701 5,168,438 5,949,210 6, 212,724 6,489,104 263,514 4.4% 276,380 4.4% Materials, Supplies & Maintenance 2,297,674 2,379,178 1,938,160 1,625,164 1,636,779 (312,996) -16.1% 11,615 0.7% Materials Reimbursements (10) (1,174) - - - - 0.0% - 0.0% Parts, Fuel & Lubricants Inventory Purchases 526,980 849,597 612,670 612,670 612,670 - 0.0% - 0.0% Parts, Fuel & Lubricants Contra (526,980) (807,713) (612,670) (612,670) (612,670) - 0.0% - 0.0% Stored Water Rights Inventory Purchases 444,314 - - - - - 0.0% - 0.0% Stored Water Rights Contra (444,314) - - - - - 0.0% - 0.0% Professional/Contract Services 1,255,614 1,217,459 2,031,344 2,120,640 2,115,790 89,296 4.4% (4,850) -0.2% Water Supply Costs 32,958,829 33,568,387 34,785,000 41,177,000 44,877,000 6,392,000 18.4% 3,700,000 9.0% Training, Travel & Membership Dues 9,633 16,257 52,453 41,183 41,183 (11,270) -21.5% - 0.0% Depreciation and Amortization 126,742 139,091 156,091 2,250,000 2,317,500 2,093,909 1341.5% 67,500 3.0% Liabilities, Settlements & Insurance 3,624 32,439 16,008 - - (16,008) -100.0% - 0.0% Utilities 175,800 180,077 205,820 216,112 226,900 10,292 5.0% 10,788 5.0% Interdepartmental Charges 2,497,907 2,860,822 3,650,457 4,249,952 4,426,269 599,495 16.4% 176,317 4.1% Debt Service 642,285 642,233 644,517 1,567,288 1,567,288 922,771 143.2% - 0.0% Debt Service Reimbursements (567,277) (580,744) (580,744) (1,307,414) (1,331,645) (726,670) 125.1% (24,231) 1.9% Capital Acquisitions 31,027 218,933 884,109 1,569,000 1,569,000 684,891 77.5% - 0.0% Asset Contra Account (45,605) (218,933) (884,109) (1,569,000) (1,569,000) (684,891) 77.5% - 0.0% Other Operating Transfers Out 3,171,032 9,957,878 4,149,486 2,953,507 4,503,613 (1,195,979) -28.8% 1,550,106 52.5% Bad Debts and Other Losses - 135,944 150,000 150,000 154,500 - 0.0% 4,500 3.0% Total Expenditures 47,410,976$ 55,758,169$ 53,147,802$ 61,256,156$ 67,024,281$ 8,108,354 $ 15.3% 5,768,125$ 9.4% Revenues Less Expenditures 7,966,901$ 504,142$ 1,655,699$ 512,731$ (1,129,715)$ 159

147
grow by $6.6 million (+12.4%) in FY25-26 and by $ 4.1 million (+6.8%) in FY26-27. In FY24-25, the City Council approved annual water rate increases over five years, with rates rising by 6.5% on January 1, 2025, and 2026, and by 6% on January 1, 2027, 2028, and 2029. As a result, water charges for residents, commercial buildings, and the refinery are expected to rise.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $264,000 (+4.4%), a net result of recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements . The proposed decrease of $ 313,000 (-16.1%) in the Materials, Supplies & Maintenance expenditure classification is due to a reclassification of Fleet Service Fund charges to the Interdepartmental Charges classification. As such, there is a corresponding increase in the Interdepartmental Charges expenditure classification of $278,000.

The proposed increase of $6.4 million (+18.4%) in the Water Supply Costs expenditure classification is due to increases in both demand/usage, and cost of water. Prior years conservation restrictions and practices have reversed , and household u sage is up. Additionally, the Desalter plant is being temporarily decommissioned, requiring the need to purchase more water from the Metropolitan Water District, which is more costly, until the plant comes back online.

The Other Operating Transfers Out classification is proposed to decrease by $ 1.2 million (-28.8%) as a result of consolidating the Water vehicle Replacement Fund into the Water Operating Fund and a decrease in transfers to the Water Capital Fund. The Capital Acquisitions and Asset Contra Account classifications are proposed to increase by $685,000 to align the budget with planned asset purchase level. The Debt Service and Debt Service Reimbursement classifications increased primarily due to scheduled principal and interest payments because of the drawdown from the State Revolving Fund Loan for $14.4 million during FY24-25 to finance the cost related to Van Ness Avenue Water Wells and Transmission Main project.

It should be noted that the proposed increase of $2.1 million reflected in the Depreciation and Amortization expenditure classification occurs each fiscal year as part of the Water Fund’s proposed operating budget for depreciation expenses and has then transferred back to the Water Capital Fund.

Going forward, the depreciation expense will be recorded in the operating fund to better represent the cost of the fund.
160

148
Public Works Operating Budget Summary (Street Lighting District Fund)

As shown in the summary table above, the Street Lighting District Fund’s Utilities expenditure classification will be increased by $46,00 (+2.5%) to align the budget with anticipated FY25-26 needs.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Taxes 1,279,425 1,277,827 1, 291,500 1,291,371 1,291,371 (129) 0.0% - 0.0% Operating Transfers In 430,966 568,817 574,772 621,457 621,457 46,685 8.1% - 0.0% Total Revenues 1,710,391$ 1,846,644$ 1,866,272$ 1,912,828$ 1,912,828$ 46,556$ 2.5% -$ 0.0% Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits - - - - - - 0.0% - 0.0% Materials, Supplies & Maintenance - - - - - - 0.0% - 0.0% Professional/Contract Services 19,149 46,882 22,150 22,150 22,150 - 0.0% - 0.0% Utilities 1,691,242 1,799,762 1,844,122 1,890,678 1,890,678 46,556 2.5% - 0.0% Total Expenditures 1,710,391$ 1,846,644$ 1,866,272$ 1,912,828$ 1,912,828$ 46,556$ 2.5% -$ 0.0% Revenues Less Expenditures -$ -$ -$ -$ -$ 161

149
Public Works Personnel Summary (General Fund and Non-General Funds)

The Public Works staffing budget will increase by 1.0 FTE Maintenance Worker position going into FY25-26. The addition of the 1.0 FTE Maintenance Worker will support the Citywide Tree Planting program with the Streetscape Division to maintain the newly planted trees by assisting with the trees’ establishment and trimming.

Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Admin Services Manager 1.00 1.00 1.00 1.00 1.00 - - Administrative Analyst 2.00 2.00 2.00 2.00 2.00 - - Administrative Assistant 5.00 5.00 5.00 5.00 5.00 - - Assistant Engineer 4.00 4.00 4.00 4.00 4.00 - - Associate Engineer 9.00 10.00 10.00 10.00 10.00 - - Cement Finisher 2.00 2.00 2.00 2.00 2.00 - - Deputy Public Works Director 1.00 1.00 1.00 1.00 1.00 - - Deputy Public Works Dir-Ops 1.00 1.00 1.00 1.00 1.00 - - Engineering Manager 3.00 3.00 4.00 4.00 4.00 - - Engineering Manager-Major Proj 1.00 1.00 - - - - - Engineering Technician III 3.00 2.00 2.00 2.00 2.00 - - Equipment Operator 9.00 9.00 9.00 9.00 9.00 - - Inspector, Public Works-Cap Proj 3.00 3.00 3.00 3.00 3.00 - - Landscape Mgr/City Arborist 1.00 1.00 1.00 1.00 1.00 - - Lead Maintenance Worker 15.00 15.00 16.00 16.00 16.00 - - Maintenance Worker 44.00 40.00 41.00 42.00 42.00 1.00 - Pest Control Technician 1.00 1.00 1.00 1.00 1.00 - - Policy & Resources Specialist 2.00 2.00 2.00 2.00 2.00 - - Principal Human Resources Analyst 1.00 1.00 1.00 1.00 1.00 - - Public Works Director 1.00 1.00 1.00 1.00 1.00 - - Public Works Supervisor 8.00 8.00 8.00 8.00 8.00 - - Sanitation Equipment Operator 31.00 35.00 35.00 35.00 35.00 - - Sanitation Services Manager 1.00 1.00 1.00 1.00 1.00 - - Senior Business Manager 1.00 1.00 1.00 1.00 1.00 - - Street Operations Manager 1.00 1.00 1.00 1.00 1.00 - - Supervising Admin Assistant 1.00 1.00 1.00 1.00 1.00 - - Traffic & Lighting Superv 1.00 1.00 1.00 1.00 1.00 - - Traffic Painter 3.00 2.00 2.00 2.00 2.00 - - Traffic Signal Technician 4.00 4.00 4.00 4.00 4.00 - - Tree Trimmer 5.00 5.00 5.00 5.00 5.00 - - Waste Management Coordinator - - 1.00 1.00 1.00 - - Wastewater Technician 7.00 7.00 7.00 7.00 7.00 - - Water Operations Manager 1.00 1.00 1.00 1.00 1.00 - - Water Operations Supervisor 3.00 3.00 3.00 3.00 3.00 - - Water Service Intern 2.00 1.00 - - - - - Water System Operator I 13.00 9.00 9.00 9.00 9.00 - - Water System Operator II 5.00 9.00 9.00 9. 00 9.00 - - Water System Operator III 12.00 12.00 12.00 12.00 12.00 - - Total FTE 208.00 206.00 208.00 209.00 209.00 1.00 - 162

150
Transit

Department Organization

Mission Statement
The mission of the Torrance Transit System is to provide reliable, safe, inexpensive, and courteous transportation to customers – the people who live, work, and do business in the City of Torrance and the region.

Functional Responsibilities
The Torrance Transit System’s primary responsibilities include providing quality transportation services to its customers; maintaining and repairing of all transit vehicles; securing its own local, state and federal funding for the department; financial monitoring and reporting; grants administration; supervision and administration of all privately contracted transit services; planning and marketing ; tracking and analyzing service statistics; providing staff for city and regional committees or task forces; monitoring and participating in regional and federal transportation legislation, issues, projects, and activities; development and implementation of service changes; and general oversight of the bus operations for the City of Torrance. 163

151
Transit Operating Budget Summary (Transit Fund)

As shown in the summary table above, total r evenue sources for FY25-26 are anticipated to increase by $3.3 million (+9.3%), primarily due to growth in the Intergovernmental, Operating Transfers In, and Charges for Services revenue classifications. The Intergovernmental revenue classification for FY25-26 is expected to increase by $1.5 million (+4.9%). This increase is largely attributed to a $1.5 million rise in Net Toll funding for Line 1 and Line 6 Express Lanes, $0.5 million from Senate Bill 1, and $0.4 million from Proposition A 40% Discretionary fund. These gains are partially offset by an anticipated decrease of $1.1 million in Transportation Development Act (TDA) receipts. The Operating Transfers In revenue classification is expected to grow by $1.0 million (+33.3%), due to increased allocations from Proposition A. The Charges for Services revenue classification is anticipated to increase by $0.8 million (+82.8%), primarily driven by increases of $0.2 million in Transit Access Pass (TAP) revenue, $0.2 million in Advertising on Shelters, and $0.2 million in Passenger Cash Fares.

The Salaries and Employee Benefits expenditure classification is proposed to increase by $ 2.6 million (+11.2%), as a net result of changes in the department’s budgeted staffing levels and recently approved pay and benefit adjustments, CalPERS rates, and other various employee -related cost elements. The proposed increase of $1.1 million (+31.7%) in Professional/Contract Services is due to an increase in contract services for the MicroTransit Pilot project, approved by City Council in August 2024. The proposed increase of $1.5 million (+ 21.5%) in the Interdepartmental Charges Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
Increase/
(
Decrease)
FY25-26
Percent
C
hange
FY26-27
Increase/
(
Decrease)
FY26-
27 P
ercent
Change
Use of Money and Property 506,189 2,032,415 1,718,000 1,792,387 1,846,159 74,387 4.3% 53,772 3.0% Intergovernmental 31,493,249 25,557,449 29,545,571 30,995,342 31,828,950 1,449,771 4.9% 833,608 2.7% Other Revenues 3,500 572,358 30,000 2,500 2,500 (27,500) -91.7% - 0.0% Charges for Services 959,729 1,205,361 940,001 1,718,200 1,764,130 778,199 82.8% 45,930 2.7% Operating Transfers In 3,000,000 3,000,000 3,000,000 4,000,000 4,000,000 1,000,000 33.3% - 0.0% Total Revenue 35,962,667$ 32,367,583$ 35,233,572$ 38,508,429$ 39,441,739$ 3,274,857$ 9.3% 933,310$ 2.4% Expenses
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
B
udget
FY25-26
Proposed
B
udget
FY26-27
Proposed
B
udget
FY25-26
Increase/
(
Decrease)
FY25-26
Percent
C
hange
FY26-27
Increase/
(
Decrease)
FY26-
27 P
ercent
Change
Salaries and Employee Benefits 14,458,042 18,574,735 22,987,327 25,557,618 26,629,813 2,570,291 11.2% 1,072,195 4.2% Materials, Supplies & Maintenance 2,708,360 3,259,410 3,593,905 3,497,160 3,497,160 (96,745) -2.7% - 0.0% Materials Reimbursements (200,517) (287,254) (250,000) (250,000) (250,000) - 0.0% - 0.0% Parts, Fuel & Lubricants Inventory Purchases 1,245,279 1,491,622 1,811,250 1,811,250 1,781,250 - 0.0% (30,000) -1.7% Parts, Fuel & Lubricants Contra (1,245,791) (1,440,811) (1,811,250) (1,811,250) (1,781,250) - 0.0% 30,000 -1.7% Professional/Contract Services 2,303,061 2,293,072 3,523,586 4,640,842 4,662,880 1,117,256 31.7% 22,038 0.5% Training, Travel & Membership Dues 86,342 111,967 125,037 121,289 121,289 (3,748) -3.0% - 0.0% Depreciation and Amortization 3,188,690 2,531,126 3,238,219 3,401,518 4,611,111 163,299 5.0% 1,209,593 35.6% Liabilities, Settlements & Insurance 476,539 160,351 217,639 - - (217,639) -100.0% - 0.0% Utilities 125,519 210,575 233,466 351,200 368,800 117,734 50.4% 17,600 5.0% Interdepartmental Charges 5,881,955 6,227,487 7,172,359 8,712,352 9,089,157 1,539,993 21.5% 376,805 4.3% Capital Acquisitions 8,487 28,205 50,000 50,000 50,000 - 0.0% - 0.0% Asset Contra Account (412,639) (99,159) (50,000) (50,000) (50,000) - 0.0% - 0.0% Other Operating Transfers Out 97,795 76,578 630,954 269,940 20,539 (361,014) -57.2% (249,401) -92.4% Total Expense 28,721,122$ 33,137,904$ 41,472,492$ 46,301,919$ 48,750,749$ 4,829,427$ 11.6% 2,448,830$ 5.3% Revenues Less Expenditures 7,241,545$ (770,321)$ (6,238,920)$ (7,793,490)$ (9,309,010)$ 164

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expenditure classification is primarily driven by the recalculation of Transit’s contributions to the Self-Insurance Fund and reallocation of indirect cost rates.

Transit Staffing Budget Summary (Non-General Fund)

The Transit staffing budget will increase by 9.0 FTE going into FY25 -26, as a result of the addition of

12.0 FTE Bus Operator positions , partially offset by transferring out 1.0 FTE Human Resources Job Classification
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY26-27
Increase/
(Decrease)
Administrative Analyst 4.00 4.00 4.00 4.00 4.00 - - Administrative Assistant 1.00 1.00 4.00 4.00 4.00 - - Apprentice Relief Bus Operator - - 3.75 3.75 3.75 - - Bus Operator 93.00 93.00 93.00 105.00 105.00 12.00 - Custodian 1.00 1.00 1.00 - - (1.00) - Customer Service Rep 2.80 2.80 2.80 2.80 2.80 - - Deputy Transit Director 1.00 1.00 1.00 1.00 1.00 - - Driver/Clerk, Delivery 0.50 0.50 0.50 0.50 0.50 - - Equipment Attendant 13.00 - - - - - - Facilities Service Supervisor 1.00 1.00 1.00 1.00 1.00 - - Fleet Services Manager 1.00 1.00 1.00 1.00 1.00 - - Fleet Services Supervisor 2.00 2.00 2.00 2.00 2.00 - - Human Resources Technician 1.00 1.00 1.00 - - (1.00) - Info Technology Analyst 1.00 1.00 1.00 1.00 1.00 - - Intern 2.00 2.00 2.00 2.00 2.00 - - Maintenance Worker 1.00 1.00 1.00 1.00 1.00 - - Mechanic 3.00 - - - - - - Mechanic, Senior 12.00 - - - - - - Office Assistant 3.00 3.00 - - - - - Principal Human Resources Analyst 1.00 1.00 1.00 - - (1.00) - Relief Bus Operator 21.00 21.00 17.25 17.25 17.25 - - Senior Business Manager 3.00 3.00 3.00 3.00 3.00 - - Senior Business Manager - Transit Planning 1.00 - - - - - - Staff Assistant 2.00 2.00 2.00 2.00 2.00 - - Storekeeper 1.50 1.50 1.50 1.50 1.50 - - Storekeeper, Auto Parts 1.00 1.00 1.00 1.00 1.00 - - Systems Analyst 1.00 1.00 1.00 1.00 1.00 - - Transit Director 1.00 1.00 1.00 1.00 1.00 - - Transit Dispatcher 4.00 4.00 4.00 4.00 4.00 - - Transit Equipment Attendant - 13.00 13.00 13.00 13.00 - - Transit Manager - Admin 1.00 1.00 1.00 1.00 1.00 - - Transit Manager - Operations 1.00 1.00 1.00 1.00 1.00 - - Tranist Manager - Planning - 1.00 1.00 1.00 1.00 - - Transit Manager - Services 1.00 1.00 1.00 1.00 1.00 - - Transit Marketing Specialist 1.00 1.00 1.00 1.00 1.00 - - Transit Mechanic - 3.00 3.00 3.00 3.00 - - Transit Senior Mechanic - 12.00 12.00 12. 00 12.00 - - Transit Supervisor 12.00 12.00 12.00 12.00 12.00 - - Transit Training Coordinator 1.00 1.00 1.00 1.00 1.00 - - Total FTE 196.80 196.80 196.80 205.80 205.80 9.00 - 165

153
Technician position and 1.0 FTE Human Resources Analyst position to the Human Resources Department and 1.0 FTE Custodian position to the General Services Department.

The addition of 12.0 FTE Bus Operator positions is to better align the staffing budget with anticipated FY25-26 program activity. The reduction of 1.0 FTE Human Resources Technician position and 1.0 FTE Human Resources Analyst position are a transfer to the Human Resources Department, resulting in a net zero impact on the City. Finally, the reduction of 1.0 FTE Custodian position is also a transfer to the General Services Department, which has net zero impact on the City. These positions will continue to service the Transit Department but are now reflected in the departments in which their duties are aligned.

166

154
Non-Departmental
The Non -Departmental programs provide specialized budgetary services to citizens and City departments.

Non-Departmental Operating Budget Summary (General Fund-Operating Fund)

Community Programs (General Fund-Operating Fund)
Expenditures related to community outreach programs and events are classified under various line items above. The following are the proposed programs and budgets for both fiscal years:

Expenditures
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Salaries and Employee Benefits 92,273 133,040 199,717 199,717 199,717 - 0.0% - 0.0% Materials, Supplies & Maintenance 74,203 65,883 233,038 2,792,200 2,787,200 2,559,162 1098.2% (5,000) -0.2% Materials Reimbursements (7,998) (5,306) (5,411) (5,500) (5,500) (89) 1.6% - 0.0% Professional/Contract Services 886,677 971,522 1,233,108 1,324,711 1,324,711 91,603 7.4% - 0.0% Training, Travel & Membership Dues 82,762 326,680 488,644 590,959 588,829 102,315 20.9% (2,130) -0.4% Debt Service 22,403,379 23,336,145 23,126,738 23,631,682 24,160,496 504,944 2.2% 528,814 2.2% Debt Service Reimbursements (18,337,743) (18,832,766) (19,341,206) (19,862,721) (20,397,834) (521,515) 2.7% (535,113) 2.7% Capital Acquisitions 1,057,816 5,035,998 - - - - 0.0% - 0.0% Asset Contra Account (300,812) (740,544) - - - - 0.0% - 0.0% Bad Debts and Other Losses - 43 1,000 1,000 1,030 - 0.0% 30 3.0% Reimbursements-Indirect Costs (6,320,271) (7,901,694) (9,147,553) (10,741,685) (11,102,923) (1,594,132) 17.4% (361,238) 3.4% Other Operating Transfers Out 36,618,589 32,118,487 15,941,129 20,661,930 11,629,351 4,720,801 29.6% (9,032,579) -43.7% Total Expenditures 36,248,875$ 34,507,488$ 12,729,204$ 18,592,293$ 9,185,077$ 5,863,089$ 46.1% (9,407,216)$ -50.6% Programs
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
Artesia Lights 36,000 36,000 36,000 TOCA Subsidy 74,400 74,400 74,400 Sister City Activities 10,000 10,000 10,000 Friendship City Activities 70,000 70,000 70,000 Armed Forces Parade 323,890 323,890 323,890 Tournament of Roses Float 127,400 177,000 177,000 Discover Torrance TBID & Downtown Torrance BID 80,000 80,000 80,000 Fourth of July Celebration 50,000 50,000 50,000 Youth in Government Activities 3,200 3,200 3,200 Community Clean Up 10,000 10,000 10,000 City Yard Open House 22,000 - 22,000 Total External Subsidies 806,890$ 834,490$ 856,490$ 167

155
Debt Service Lease Payments (General Fund-Operating Fund) The Non -Departmental Budget also houses the lease payments made by the General Fund to the City’s Debt Service Fund. The proposed budget in FY25-26 and FY26 -27 for $3.8 million is fairly consistent from FY24 -25 amended budge t. Th is includes budgets related to 2016 Certification of Participation and 2020 and 2021 Lease Revenue Bonds. The cost of 2020 Lease Revenue Bond is allocated to all funds and departments within the Salaries and Employee Benefits classification. As payroll is processed, similar to CalPERS costs, these costs are distributed accordingly. These charges reimburse (Debt Service Reimbursements) the General Fund to offset the lease payment made to the Debt Service Fund. The full detail of the City’s debt can be found in the Debt Financing Information section in the Appendix of this document.

Indirect Cost Reimbursement Summary by Fund (General Fund-Operating Fund)

The City charges certain Enterprise, Non -major Governmental Funds, and Internal Service Funds an indirect cost rate to recover a portion of general government services provided to these funds in supporting their daily operation. The departments supporting these funds, for which the indirect rate is seeking proportional reimbursement are: City Manager, City Attorney, City Clerk, City Treasurer, Finance, Human Resources, Civil Service, IT, and General Services. Every year a calculation is performed to determine the proportion of costs that can be charged to these funds. For FY25-26 and FY26-27, a charge equal to 29.06% of a subset of Salaries & Employee Benefits is assessed. Further, this rate is eligible for use against certain grant funds (including federal sources subject to OMB A-133 Single Audits), where appropriate. Additional details regarding the City’s indirect cost allocation methodology can be found in the Cost Allocation Plan/Indirect Cost Rate section in the Appendix of this document.

Fund
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Airport Fund 333,263 292,723 339, 083 379,796 393,395 40,713 12.0% 13,599 3.6% Fleet Fund - 729,648 925,358 1,016,630 1,050,053 91,272 9.9% 33,423 3.3% Sanitation Fund 926,133 898,577 1,024,593 1,132,535 1,170,817 107,942 10.5% 38,282 3.4% Section 8 Housing Fund 115,381 140,057 156,072 166,013 171,286 9,941 6.4% 5,273 3.2% Self-Insurance Fund - 246,111 235,890 305,657 318,990 69,767 29.6% 13,333 4.4% Sewer Fund 377,744 365,665 441,116 479,539 496,975 38,423 8.7% 17,436 3.6% Transit Fund 3,419,327 4,056,322 4,731,897 5,835,816 6,026,039 1,103,919 23.3% 190,223 3.3% Water Fund 1,148,423 1,172,591 1,293,544 1,425,699 1,475,368 132,155 10.2% 49,669 3.5% Total Indirect Cost 6,320,271$ 7,901,694$ 9,147,553$ 10,741,685$ 11,102,923$ 1,594,132$ 17.4% 361,238$ 3.4% 168

156
Other Operating Transfers Out (General Fund-Operating Fund)

This classification houses the miscellaneous transfers from the City’s General Fund -Operating Fund to other funds across the City.

Other Operating Transfers Out (General Fund-Measure SST Fund)

This classification houses the miscellaneous transfers from the City’s General Fund -Measure SST Fund to other funds across the City. Transfers to the General Fun d-Operating Fund for t he position offsets listed above relate to the sworn safety, IT, and homelessness response positions which would otherwise have been eliminated in FY22-23, should Measure SST have not passed.

Receiving Fund(s) Description
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Amended
Budget
Capital Project Funds Capital Improvement Projects 3,196,559 15,604,375 6,500,000 General Fund - Restricted/Assigned CEPPT Contribution 9,360,267 2,254,400 2,314,887 General Fund - Restricted/Assigned Asset Replacement Contributions 2,987,362 2,396,091 2,396,091 Street Light District Fund Street Lighting District Assessment 30,109 30,109 30,109 Santiation Fund Citywide Refuse Collection Reimbursement; Senior Discount Subsidy 314,201 316,739 326,241 Sewer Fund Senior/Low-Income Wastewater Discount 34,347 35,827 36,902 Water Fund Senior/Low-Income Water Discount Subsidy 18,284 24,388 25,120 Total Transfers 15,941,129$ 20,661,929$ 11,629,350$
Receiving Fund(s) Description
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Amended
Budget
General Fund - Operating Fund City Manager Positions Offset 102,447 232,265 245,909 General Fund - Operating Fund Police Positions Offset 9,847,116 10,966,237 11,547,555 General Fund - Operating Fund Fire Positions Offset 2,121,088 2,214,814 2,319,082 General Fund - Operating Fund CIT Positions Offset 200,415 205,520 215,702 General Fund - Assigned General Fund Reserve Contribution 5,000,000 5,000,000 5,000,000 Capital Project Funds Capital Improvement Projects 8,620,160 5,978,715 6,034,192 Total Transfers 25,891,226$ 24,597,552$ 25,362,440$
169

157
General Fund-Restricted Fund Operating Budget

This contains information on the City’s Restricted Funds, which include Cable’s Public, Education, and Governmental Access (PEG) Fund and the CalPERS CEPPT Section 115 Fund. Contributions from the General Fund Operating Fund to the CEPPT Fund are proposed to decrease by $7.1 million in FY25-

26. Other Operating Transfers Out expenditures classification reflect transfers from the CEPPT Fund to the General Fund Operating Fund, to address rising UAL payment contributions. This is the first year since establishing the CEPPT Fund that transfers are being made to the General Fund Operating Fund.

General Fund-Assigned Fund Operating Budget

This table provides information on the City’s Assigned Funds, which include Replacement Funds and Reserve Funds, and are part of the overall General Fund. Following a recommendation from a third- party consultant, Reserve Fund, formerly classified as “Unassigned” will now be classified as “Assigned” to enhance fiscal transparency and improve oversight. For FY25 -26 and FY26 -27, Operating Transfers In revenues total $7.4 million. This includes a $5.0 million contribution from the City’s General Fund –Measure SST Fund to the City’s Reserve Fund, and a $2.4 million transfer from the General Fund to set aside funding each year for planned future equipment purchases . This helps Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Licenses, Fees and Permits 308,295 277,038 350,000 247,000 234,650 (103,000) -29.4% (12,350) -5.0% Use of Money and Property 191,662 2,020,345 248,058 1,915,179 1,693,045 1,667,121 672.1% (222,134) -11.6% Operating Transfers In 1,952,325 22,533,938 9,360,267 2,254,400 2,314,887 (7,105,867) -75.9% 60,487 2.7% Total Revenue 2,452,282$ 24,831,321$ 9,958,325$ 4,416,579$ 4,242,582$ (5,541,746)$ -55.6% (173,997)$ -3.9% Expenses
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Debt Service 3,343 19,204 15,000 31,652 34,184 16,652 111.0% 2,532 8.0% Other Expenditures 4,532 37,206 28,500 28,500 28,500 - 0.0% - 0.0% Capital Acquisitions 16,536 544,635 122,675 - - (122,675) -100.0% - 0.0% Other Operating Transfers Out (823,470) - - 7,286,337 8,730,126 7,286,337 0.0% 1,443,789 19.8% Total Expense (799,059)$ 601,045$ 166,175$ 7,346,489$ 8,792,810$ 7,180,314$ 4320.9% 1,446,321$ 19.7% Revenues Less Expenditures 3,251,341$ 24,230,276$ 9,792,150$ (2,929,910)$ (4,550,228)$ (12,722,060)$ -130% (1,620,318)$ 55% Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Other Revenues 1,272 - - - - - 0.0% - 0.0% Operating Transfers In 2,194,668 10,852,404 8,282,505 7,396,091 7,396,091 (886,414) -10.7% - 0.0% Total Revenue 2,195,940$ 10,852,404$ 8,282,505$ 7,396,091$ 7,396,091$ (886,414)$ -10.7% -$ 0.0% Expenses
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Materials, Supplies & Maintenance 4,982 - - - - - 0.0% - 0.0% Professional/Contract Services 58,497 - - - - - 0.0% - 0.0% Capital Acquisitions 296,689 1,147,848 1,710,923 2,502,816 6,571,849 791,893 46.3% 4,069,033 162.6% Other Operating Transfers Out 1,359,426 3,063,368 5,116,280 5,000,000 5,000,000 (116,280) -2.3% - 0.0% Total Expense 1,719,594$ 4,211,216$ 6,827,203$ 7,502,816$ 11,571,849$ 675,613$ 9.9% 4,069,033$ 54.2% Revenues Less Expenditures 476,346$ 6,641,188$ 1,455,302$ (106,725)$ (4,175,758)$ (1,562,027)$ -107% (4,069,033)$ 3813% 170

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smooth spending across multiple years and creates a dedicated source for these different replacement activities, which include the Defibrillator Replacement Fund, Drone/ALPR Replacement Fund, and the IT Replacement Fund.

The Capital Acquisitions expenditures classification is budgeted to increase $792,000 in FY25-26 and $4.1 million in FY26 -27 to fund replacement of aging telecom, network and radio equipment. The Other Operating Transfers Out expenditure classification budgeted amount of $5.0 million represents a use of Reserves set aside to offset public safety wage increases in the General Fund - Operating Fund, which helps the Status of Labor Agreements and Labor Trends Area of Focus. The City’s 10-year projection reduces its reliance incrementally over time with no use of Reserves in FY34-

35. Debt Service Fund Operating Budget

This represents the City’s Debt Service fund, which is where Lease payments from the General Fund are transferred so that payments can be tracked for the actual debt payments.

Revenues
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Use of Money and Property 22,099,220 22, 593,694 23,107,338 23,625,753 24,154,567 518,415 2.2% 528,814 2.2% Other Financing Sources - - - - - - 0.0% - 0.0% Total Revenue 22,099,220$ 22,593,694$ 23,107,338$ 23,625,753$ 24,154,567$ 518,415$ 2.2% 528,814$ 2.2% Expenses
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
FY26-27
Increase/
(Decrease)
FY26-27
Percent
Change
Depreciation and Amortization - - - - - - 0.0% - 0.0% Debt Service 22,098,251 22,593,178 23,107,338 23,625,753 24,154,567 518,415 2.2% 528,814 2.2% Other Operating Transfers Out - - - - - - 0.0% - 0.0% Other Financing Uses - - - - - - 0.0% - 0.0% Total Expense 22,098,251$ 22,593,178$ 23,107,338$ 23,625,753$ 24,154,567$ 518,415$ 2.2% 528,814$ 2.2% Revenues Less Expenditures 969$ 516$ -$ -$ -$ -$ 0% -$ 0% 171
2025

FIVE-YEAR FUND

PROJECTIONS
172

159
Five-Year Fund Projections
General Fund

As previously mentioned, the City’s General Fund is comprised of the Operating, Measure SST, Restricted, and Assigned sub-funds. Following a recommendation from a third-party consultant, the Reserve Fund, formerly classified as “Unassigned” will now be classified as “Assigned” to enhance fiscal transparency and improve oversight.

The City is projecting that the General Fund total fund balance will end FY25-26 at $123.6 million. It is anticipated that this figure will decrease to $99.8 million in FY29-30, primarily due to the use of funds in the CalPERS CEPPT Section 115 Trust Fund (Restricted) to mitigate the impact of increases in UAL costs. Further, the unrestricted fund balance is projected to remain relatively stable at $81.5 million at the end of FY25 -26 to $84.5 million at the end of FY29 -30, which maintains the City’s unrestricted fund balance at approximately 25.0% of the General Fund Operating Fund’s expenditure budget.

As shown in the table above, expenditures are exceeding revenues during the 5-year period presented and is projected to continue on this path until FY31-32, where revenues exceed expenditures and fund balance is projected to increase thereafter . This trend is a direct result of the 5 -year ramp up for CalPERS UAL payments (loss in FY21 -22 and shortfall in FY22 -23) coupled with settled/anticipated labor agreements, which have growth rates projected to plateau by FY28-29. As previously mentioned, the City is projecting a strategic drawdown of its CEPPT Fund starting in FY25 -26 to smooth the impacts of these CalPERS UAL payments, as shown in the Restricted line of the Fund Balance Detail. Additionally, the deficit experienced in FY25 -26 is largely due to significant contributions from the General Fund Operating and General Fund SST funds to the Capital Fund , exceeding $21 million.

FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance 134,780,041 123,639,031 114,913,045 109,410,592 102,507,037 Revenues 343,101,936 354,973,755 367,642,982 379,857,804 386,834,936 Expenses 354,242,946 363,699,741 373,145,435 386,761,359 389,502,944 Net Change Operating Activities (11,141,010)$ (8,725,986)$ (5,502,453)$ (6,903,555)$ (2,668,008)$ Ending Fund Balance 123,639,031$ 114,913,045$ 109,410,592$ 102,507,037$ 99,839,029$ Fund Balance Detail
Nonspendable 1,661,453 1,311,453 961,453 961,453 961,453 Restricted 40,512,805 35,962,577 28,910,383 20,215,844 14,415,695 Assigned 76,376,625 72,200,867 73,750,608 75,541,592 78,673,733 Unassigned 5,088,148 5,438,148 5,788,148 5,788,148 5,788,148 20% Unrestricted Threshold 62,642,007$ 63,277,318$ 65,734,680$ 68,081,334$ 69,347,608$ Unrestricted as Percentage of Budget 26.0% 24. 5% 24.2% 23.9% 24.4% 173

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To arrive at the 5-year projection, a comprehensive projection was conducted, which includes (but is not limited to) the following major assumptions for the General Fund:
• Overall Revenue growth of approximately 3.0% per year, using the following average annual assumptions in the out years (years 3-5):
o Sales Tax: 3.0%
o Property Tax: 3.5%
o Utility Users Tax: 3.5%
o Occupancy Tax: 2.5%
o Charges for Services: 3.5%
• Overall Expenditure growth of approximately 2.4% per year, using the following assumptions:
o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns)
o 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance o Additional 3% CPI adjustments for Utilit ies, Fuel, Fleet Labor and Vehicle Replacement budgets
o Increased Self -Insurance contributions to stabilize this Fund’s performance (increased citywide allocations)
o CEPPT contributions of the following, to mitigate forthcoming CalPERS rate increases:
 $2,254,400 in FY25-26;
 $2,314,887 in FY26-27;
 $2,376,579 in FY27-28;
 $2,441,077 in FY28-29; and
 $2,506,631 in FY29-30.
o Capital contributions of the following, to address needs identified in the Facilities Index Study:
 $21,583,090 in FY25-26;
 $12,534,192 in FY26-27;
 $11,597,209 in FY27-28;
 $11,714,811 in FY28-29; and
 $11,180,971 in FY29-30.

174

161
Airport Fund

The City is projecting that the fund’s net position will end FY25-26 at $42.4 million. It is anticipated that this figure will climb to $ 55.6 million in FY29-30. To arrive at these results , a comprehensive projection was conducted, which includes (but is not limited to) the following major assumptions for the Airport Operations Fund:
• Overall Revenue growth of approximately 2.7% annually • Overall Expenditure growth of approximately -3.7% annually ( excluding the variability of transfers to the Airport Capital Fund , growth of recurring expenses is approximately 2.9% annually)
o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns)
o 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance o Additional 3% CPI adjustments for Utilit ies, Fuel, Fleet Labor and Vehicle Replacement budgets
o Adjusted Self-Insurance contributions to stabilize the Fund’s performance (increased citywide allocations)
o Capital Improvement Plan contributions

Sanitation Fund

The City is projecting that the fund’s net position will end FY25-26 at $14.1 million. It is anticipated that this figure will climb to $ 18.2 million in FY29-30. To arrive at these results , a comprehensive FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Net Position 39,224,564 42,396,957 45,595,161 48,838,576 52,156,396 Revenues 21,044,124 21,607,369 22,204,752 22,819,333 23,453,329 Expenses 24,002,581 21,759,455 20,581,547 22,815,173 20,286,688 Net Change Operating Activities (2,958,457)$ (152,086)$ 1,623,205$ 4,160$ 3,166,641$ Reserved for Capital Improvement Projects 6,130,850 3,350,290 1,620,210 3,313,660 250,000 Ending Net Position 42,396,957$ 45,595,161$ 48,838,576$ 52,156,396$ 55,573,037$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Net Position 14,605,735 14,135,780 14,471,806 15,666,235 16,890,758 Revenues 18,859,697 20,287,133 21,824,085 22,478,447 23,152,434 Expenses 19,329,652 19,951,107 20,629,656 21,253,924 21,819,879 Net Change Operating Activities (469,955)$ 336,026$ 1,194,429$ 1,224,523$ 1,332,555$ Reserved for Capital Improvement Projects - - - - - Ending Net Position 14,135,780$ 14,471,806$ 15,666,235$ 16,890,758$ 18,223,313$ 175

162
projection was conducted, which includes (but is not limited to) the following major assumptions for the Sanitation Operations Fund:
• Overall Revenue growth of approximately 5.3% annually o As a result of the resolution adopted on June 6, 2023, annual revenues for refuse and recycling collection services are assumed to increase by 9% in FY25 -26, 8.0% in FY26- 27 and FY27-28.
• Overall Expenditure growth of approximately 3.1% annually o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns)
o 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance o Additional 3% CPI adjustments for Utilit ies, Fuel, Fleet Labor and Vehicle Replacement budgets
o Adjusted Self-Insurance contributions to stabilize th e Fund’s performance (increased citywide allocations)

Sewer Fund

The City is projecting that the fund’s net position will end FY25-26 at $56.6 million. It is anticipated that this figure will climb to $ 69.1 million in FY29-30. T o arrive at these results a comprehensive projection was conducted, which includes (but is not limited to) the following major assumptions for the Sewer Operations Fund:
• Overall Revenue growth of approximately 3.1% annually • Overall Expenditure growth of approximately 0.9% annually (excluding the variability of transfers to the Sewer Capital Fund, growth of recurring expenses is approximately 3.3% annually)
o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns)
FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Net Position 53,622,107 56,591,623 59,591,035 62,653,824 65,809,278 Revenues 8,201,108 8,447,146 8,709,553 8,980,252 9,259,509 Expenses 7,131,592 6,847,734 7,046,764 7,224,798 7,385,328 Net Change Operating Activities 1,069,516$ 1,599,412$ 1,662,789$ 1,755,454$ 1,874,181$ Reserved for Capital Improvement Projects 1,900,000 1,400,000 1,400,000 1,400,000 1,400,000 Ending Net Position 56,591,623$ 59,591,035$ 62,653,824$ 65,809,278$ 69,083,459$ 176

163
o 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance o Additional 3% CPI adjustments for Utilit ies, Fuel, Fleet Labor and Vehicle Replacement budgets
o Adjusted Self-Insurance contributions to stabilize this Fund’s performance (increased citywide allocations)
o Capital Improvement Plan contributions

Transit Fund

The Transit Fund’s projection is unique from other enterprise funds in that the City controls for non - cash depreciation entries since Transit receives separate federal grants, outside of this projection to fund capital investment in these assets. It is therefore assumed the value of these annual grants and the depreciation expense controlled should typically balance overtime to maintain the capital asset condition. In the other enterprise funds, since the revenues received in this projection cover that investment, it is not controlled for in those projections. The City is projecting that the fund’s net position will end FY25-26 at $37.3 million, as adjusted. It is anticipated that this figure will decrease to $16.2 million in FY29-30, as adjusted.

To arrive at these results a comprehensive projection was conducted, which includes (but is not limited to) the following major assumptions for the Transit Operations Fund:
• Overall Revenue growth of approximately 2.7% annually • Overall Expenditure growth of approximately 3.7% annually o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns)
o 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Net Position 41,441,563 37, 299,591 32,601,692 27,366,090 21,806,666 Revenues 38,508,429 39, 441,739 40,629,325 41,759,700 42,856,915 Expenses 46,301,919 48, 750,749 50,614,372 52,211,053 53,528,387 Net Change Operating Activities (7,793,490)$ ( 9,309,010)$ (9,985,047)$ (10,451,353)$ (10,671,472)$ Ending Net Position 33,648,073$ 27,990,581$ 22,616,645$ 16,914,737$ 11,135,194$ Reserved for Capital Improvement Projects 250,000 - - - - Adjustment for Non-Cash 3,401,518 4, 611,111 4,749,445 4,891,929 5,038,687 Ending Net Position (adj) 37,299,591$ 32, 601,692$ 27,366,090$ 21,806,666$ 16,173,881$ 177

164
o Additional 3% CPI adjustments for Utilit ies, Fuel, Fleet Labor and Vehicle Replacement budgets
o Adjusted Self -Insurance contributions to stabilize th e Fund’s performance (increased citywide allocations)

Water Fund

The City is projecting that the fund’s net position will end FY25-26 at $153.5 million. It is anticipated that this figure will climb to $1 80.1 million in FY29-30. To arrive at these results a comprehensive projection was conducted, which includes (but is not limited to) the following major assumptions for the Water Operations Fund:
• Overall Revenue growth of approximately 5.6% annually • Overall Expenditure growth of approximately 2.8% annually (excluding the variability of transfers to the Water Capital Fund, growth of recurring expenses is approximately 4.0% annually)
o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns)
o 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance; Water Supply Costs
o Additional 3% CPI adjustments for Utilit ies, Fuel, Fleet Labor and Vehicle Replacement budgets
o Adjusted Self-Insurance contributions to stabilize this Fund’s performance (increased citywide allocations)
o Capital contributions based on the proposed Capital Improvement Plan

FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Net Position 150,083,005 153,545,736 156,916,021 163,637,190 171,717,731 Revenues 61,768,887 65,894,566 71,158,243 74,413,999 76,644,661 Expenses 61,256,156 67,024,281 70,237,074 70,333,458 68,213,607 Net Change Operating Activities 512,731$ (1,129,715)$ 921,169$ 4,080,541$ 8,431,054$ Reserved for Capital Improvement Projects 2,950,000 4,500,000 5,800,000 4,000,000 - Ending Net Position 153,545,736$ 156,916,021$ 163,637,190$ 171,717,731$ 180,148,785$ 178

165
Fleet Services Fund

The City is projecting that the fund’s net position will end FY25-26 at $53.0 million. It is anticipated that this figure will increase to $ 65.9 million in FY29-30. To arrive at these results a comprehensive projection was conducted, which includes (but is not limited to) the following major assumptions for the Fleet Operations Fund:
• Overall Revenue growth of approximately 3.0% annually • Overall Expenditure growth of approximately 1.5% annually (excluding the variability of transfers to the Fleet Capital Fund, growth of recurring expenses is approximately 2.8% annually)
o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns)
o 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance o Additional 3% CPI adjustments for Utilit ies, Fuel, Fleet Labor and Vehicle Replacement budgets
o Adjusted Self-Insurance contributions to stabilize this Fund’s performance (increased citywide allocations)

Self-Insurance Fund

The City is projecting that the fund’s net position will end FY25-26 at (-$50.9 million). It is anticipated that this figure will slightly increase to ( -$50.6 million) in FY29-30. This return to budget stability, as previously described, ensures the fund balance is no longer deteriorating further. It is anticipated that one-time contributions can be made over time to rebuild this fund balance, however given the FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Net Position 50,043,874 52,979,349 56,052,821 59,185,701 62,433,083 Revenues 15,269,616 15,728,552 16,200,411 16,686,426 17,187,021 Expenses 13,049,141 14,110,080 14,567,531 13,439,044 13,763,151 Net Change Operating Activities 2,220,475$ 1,618,472$ 1,632,880$ 3,247,382$ 3,423,870$ Reserved for Capital Improvement Projects 715,000 1,455,000 1,500,000 - - Ending Net Position 52,979,349$ 56,052,821$ 59,185,701$ 62,433,083$ 65,856,953$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Net Position (50,798,208) (50,921,359) (50,902,778) (50,819,279) (50,702,552) Revenues 24,178,667 25,778,667 27,058,667 28,133,868 28,972,525 Expenses 24,301,818 25,760,086 26,975,168 28,017,141 28,862,336 Net Change Operating Activities (123,151)$ 18,581$ 83,499$ 116,727$ 110,189$ Reserved for Capital Improvement Projects - - - - - Ending Net Position (50,921,359)$ (50,902,778)$ (50,819,279)$ (50,702,552)$ (50,592,363)$ 179

166
anticipated lag in General Fund revenue growth, these one -time contributions may wane over time.

To arrive at these results, a comprehensive projection was conducted, which includes (but is not limited to) the following major assumptions for the Self-Insurance Fund:
• Overall Revenue growth of approximately 4.6% annually. • Overall Expenditure growth of approximately 4.4% annually o Annual wage growth factor for settled and unsettled labor agreements, including CalPERS contribution projection adjustments each year based on projection modeling (6.8% discount rate; 6.2% annual returns) 3% CPI adjustments for Materials, Supplies & Maintenance; Professional/Contract Services & Utilities; Training, Travel & Membership Dues; Liabilities, Settlements & Insurance Projected costs of insurance premiums, settlements, and external attorney fees Nonmajor Governmental Funds and Fiduciary Funds The below financial statements are based on the projected beginning fund balance in FY25-26 and are adjusted based on the proposed budgets for FY25 -30. Further details are available in their respective Department sections.

Non-Major Governmental Funds
Air Quality Management District (AQMD) Fund

Debt Service Fund

Low Mod Fund

FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance 435,328 285,984 88,147 115,199 142,805 Revenues 211,134 217,468 224,000 230,700 237,600 Expenses 360,478 415,305 196,948 203,094 207,733 Net Change Operating Activities (149,344)$ (197,837)$ 27,052$ 27,606$ 29,867$ Ending Fund Balance 285,984$ 88,147$ 115,199$ 142,805$ 172,672$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance 6,808 6,808 6,808 6,808 6,808 Revenues 23,625,753 24,154,567 24,710,647 25,278,646 25,859,179 Expenses 23,625,753 24,154,567 24,710,647 25,278,646 25,859,179 Net Change Operating Activities -$ -$ -$ -$ -$ Ending Fund Balance 6,808$ 6,808$ 6,808$ 6,808$ 6,808$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance 4,076,536 4,006,198 4,169,102 4,100,057 4,028,075 Revenues - 228,623 - - - Expenses 70,338 65,719 69,045 71,982 74,210 Net Change Operating Activities (70,338)$ 162,904$ (69,045)$ (71,982)$ (74,210)$ Ending Fund Balance 4,006,198$ 4,169,102$ 4,100,057$ 4,028,075$ 3,953,865$ 180

167
Meadow Park Parking Lot District Fund

Redevelopment Agency (RDA) Fund

Section 8 Housing Fund

Street Lighting District Fund

Traffic Safety Fund

FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance 276,021 287,021 297,996 309,300 320,943 Revenues 41,205 41,205 42,442 43,716 45,028 Expenses 30,205 30,230 31,138 32,073 33,036 Net Change Operating Activities 11,000$ 10,975$ 11,304$ 11,643$ 11,992$ Ending Fund Balance 287,021$ 297,996$ 309,300$ 320,943$ 332,935$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance (38,550,768) (35,463,461) (32,275,700) (29,197,523) (26,014,502) Revenues 4,339,486 4,351,214 4,156,255 4,156,255 4,156,255 Expenses 1,252,179 1,163,453 1,078,078 973,234 916,378 Net Change Operating Activities 3,087,307$ 3,187,761$ 3,078,177$ 3,183,021$ 3,239,877$ Ending Fund Balance (35,463,461)$ (32,275,700)$ (29,197,523)$ (26,014,502)$ (22,774,625)$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance 698,436 792,944 907,131 1,015,386 1,122,064 Revenues 9,345,309 10,090,382 10,393,100 10,704,800 11,025,800 Expenses 9,250,801 9,976,195 10,284,845 10,598,122 10,911,131 Net Change Operating Activities 94,508$ 114,187$ 108,255$ 106,678$ 114,669$ Ending Fund Balance 792,944$ 907,131$ 1,015,386$ 1,122,064$ 1,236,733$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance - - - - - Revenues 1,912,828 1,912,828 1,970,215 2,029,324 2,090,206 Expenses 1,912,828 1,912,828 1,970,215 2,029,324 2,090,206 Net Change Operating Activities -$ -$ -$ -$ -$ Ending Fund Balance -$ -$ -$ -$ -$ FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance 7,750 7,750 7,750 7,750 7,750 Revenues 70,950 73,080 75,300 77,600 79,900 Expenses 70,950 73,080 75,300 77,600 79,900 Net Change Operating Activities -$ -$ -$ -$ -$ Ending Fund Balance 7,750$ 7,750$ 7,750$ 7,750$ 7,750$ 181

168
Vanpool Fund

FY25-26 FY26-27 FY27-28 FY28-29 FY29-30
Beginning Fund Balance - - - - - Revenues 261,749 264,205 266,734 269,338 272,021 Expenses 261,749 264,205 266,734 269,338 272,021 Net Change Operating Activities -$ -$ -$ -$ -$ Ending Fund Balance -$ -$ -$ -$ -$ 182
2025

CAPITAL

IMPROVEMENT PLAN
183

169
Capital Improvement Plan
The City of Torrance biennially develops a five -
year Capital Improvement Plan (CIP) budget,
with annual adjustments made during the
interim budget years. Although the program
spans multiple years, only funds for the current
year ( FY25-26) are appropriated as part of the
budget process. Next year, the plan will be
revised again, and the revised FY26-27 plan will
be approved and appropriated. This Capital
Improvement Plan represents the first year of
the FY26-30 five-year plan. The years beyond any current budget year are included as a planning tool to demonstrate total anticipated capital funding needs. Project needs are evaluated annually to ensure that budgets fall within available funding limits and best reflect current City priorities.

CIP Structure
The CIP is a five-year financial plan for the acquisition, expansion or rehabilitation of land, buildings, and other major infrastructure. Each Capital Project is organized by Capital Project Type (i.e. Parks, Facilities, Public Right of Way) and then by Project Location. Historically, projects were organized by the department responsible for implementing the activities . In an effort to better serve the community and provide the public with enhanced access to City efforts underway, an online ArcGIS Capital Improvement Projects Dashboard displaying the location and description for each Capital Project was made available beginning FY24-25. Project updates are provided quarterly and include photographs.

In addition to major capital investments in parks, recreation facilities, service facilities, roads, sidewalks, public utility components, and other city-owned property, the City includes a section titled Operating Projects in the City’s Capital Improvement Plan. These are projects that are one -time costs related to a department’s opera tions, or smaller projects that are one-time in nature that are not tied to a larger project. Examples include replacement of the City’s Enterprise Resource Planning (ERP) system, or the relocation of the tar plant preserve. These projects are categorized by the department who is responsible for each project. Should the project require future maintenance, such maintenance will be budgeted in the responsible department’s operating budget in the following year(s).

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170
Finally, the last category, Other Projects, includes additional one-time funding needs of the City to address various initiatives that are not necessarily capital in nature, but do not have a recurring funding requirement, so are therefore not included in the City’s operating budget. Since these efforts do not require ongoing funding, these projects are included and explained in this section. Examples of projects in this category include the upgrade of Downtown Torrance lights and utility undergrounding administration.

Budget Process
The Capital Improvement Plan (CIP) budget process is a five-year planning cycle, updated biennially.

The goal is to re -develop and establish a five -year plan, every two years, to ensure projects and funding availability are regularly evaluated and align with current priorities. While a five-year plan is presented, City Council only appropriates the first year of funding. Year 2 is appropriated in the mid - cycle update, with years 3-5 of the plan being included for planning purposes. This cycle then repeats itself when entering a new two -year budget cycle. This plan presents all planned major capital investments in city-owned parks, facilities, and other infrastructure over the next five years.

In FY24-25, the General Services Department completed a Facility Index Study which assessed the current state of the City’s building and park assets, thereby serving as the backbone for the City’s recommended CIP as it was designed. The results of this study informed the priority, scale, scope, and timing of these projects citywide. The Building Index Study identified that over $200 million in funding needs to be addressed in the coming ten years, or approximately $20.5 million annually on average.

Additionally, t he FY25-26 budget includes $300,000 to allow for a Parks Master Plan effort to be completed. This effort will provide the community with the opportunity for input to shape the future of the City’s parks and help shed light on the cost implications of improving the conditions of parks consistent with community expectations. It is anticipated that the funding requirements resulting from this study will be in addition to the Facilities Index Study and far exceed the City’s ability to pay.

As a result, additional funding sources, including grants and outside sources, will become ever more critical.

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171
CIP Summary by Project Type

The City is proposing a CI P that will invest $ 250 million over the next five years to maintain and improve the quality and functionality of its capital infrastructure. Capital infrastructure includes city parks, recreation facilities, service facilities, roads, sidewalks, public utility components, and other city-owned property that are central to the character and quality of our community and the services that we provide. In addition, the City included t hree categories for other purposes: Operating Projects, Other and Contingency. The Operating Projects and Other projects include funding needs for various departments or topics that do not qualify as a capital investment in a depreciable asset. This could include consulting services needs or one -time repairs and upkeep on smaller scale assets.

The City is also including a Contingency line item in the City’s CIP to help provide additional flexibility addressing any funding gaps that arise when completing these efforts. This figure represents 10% of the City’s General Fund, Measure SST Fund, Measure A Annual Allocation, Parks & Recreation Facilities Fund, Park Equipment Replacement Fund, and Parks & Recreation Open Space Fund commitments .

This contingency is funded through the City’s General Fund allocation and will be utilized, when necessary, under the City Manager’s authority, to fund any shortfalls in a particular project to ensure timely advancement in these efforts.

172
CIP Summary by Funding Source

The table above summarizes all the various funding sources for the proposed CIP.

Funding Source
Life-to-Date
Budget
Life-to-Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
2016 Certificate of Participation 1,427,755 1,427,755 - - - - - Airport Capital Project Fund 6,787,881 4,729,356 6,130,850 3,350,290 1,620,210 3,313,660 250,000 AQMD - - 175,000 225,000 - - - CDBG Fund 64,855 2 683,333 683,333 683,333 683,333 683,333 DIF - Police 170,000 170,000 - - - - - DIF - Sewer 9,000 9,000 - - - - - DIF - Storm Drain 1,349,400 773,822 100,000 100,000 100,000 100,000 100,000 DIF - Transportation 1,177,495 1,177,495 - - - - - DIF - Utility Underground 1,611,643 1,611,643 450,000 450,000 450,000 450,000 450,000 Donations 146,300 100,000 - - - - - Fleet Services Capital Fund 19,000 19,000 400,000 1,455,000 1,500,000 - - Gas Tax 7,170,667 1,798,916 1,350,000 1,350,000 750,000 750,000 750,000 General Fund 9,915,435 7,328,755 14,604,375 2,767,118 2,496,369 2,451,485 554,021 Measure A 350,000 350,000 1,072,250 625,000 2,000,000 2,660,982 - Measure M Grant 6,964,766 2,889,210 17,245,000 8,100,000 - - - Measure M Local Return 9,280,799 5,611,240 4,039,500 2,850,000 2,550,000 2,550,000 2,350,000 Measure R Grant 7,928,550 4,417,134 - - - - - Measure R Local Return 7,457,557 3,979,284 2,547,500 3,462,500 2,837,500 2,180,000 2,775,000 Measure SST Fund 6,299,615 4,364,481 8,228,715 5,161,210 6,027,582 5,641,891 917,860 Measure W 13,786,318 11,702,933 500,000 1,505,000 6,505,000 3,755,000 1,255,000 Measure W Grant 1,238,868 428,801 6,500,000 7,100,000 4,884,402 256,000 - Other Grants 11,394,443 7,851,102 4,357,000 1,184,298 4,288,073 3,100,000 - Park Equipment Replacement Fund 96,694 75,796 224,204 - - - - Parks & Rec Facilities Fund - - 300,000 - 250,000 556,470 - Parks & Rec Open Space Fund 1,506,525 1,220,078 1,900,000 - 845,000 - 1,322,350 PEG Fund Capital 355,000 126,800 - - - - - Prop A Local Return 263 263 - - - - - Prop A M&S 350,000 350,000 350,000 - - - - Prop C Local Return 11,478,433 6,003,263 3,087,500 3,150,000 2,850,000 2,800,000 2,600,000 SB1 11,645,418 4,572,519 4,956,000 3,600,000 3,600,000 3,600,000 3,600,000 Sewer Capital Project Fund 8,071,036 8,039,929 1,900,000 1,400,000 1,400,000 1,400,000 1,400,000 TDA Article 3 Bicycle Fund 253,498 146,900 206,000 106,000 106,000 106,000 106,000 Transit Capital Fund 164,800 141,079 1,250,000 - - - - Water Capital Fund 32,825,643 12,155,589 2,950,000 4,500,000 5,800,000 4,000,000 - Water State Revolving Fund 16,000,000 803,708 - - - - - Total Expenditures 177,297,658$ 94,375,854$ 85,507,227$ 53,124,749$ 51,543,469$ 40,354,821$ 19,113,564$ 187

173
Measure SST
A large part of the City’s long-term financial stability is attributable to the Torrance community’s support of the passage of Measure SST (Safe, Strong Torrance). As of FY25-26, it is now projected that Measure SST will generate at least $26.2 million annually. With additional revenue available, capital investments are being prioritized in the CIP to begin addressing portions of the Building Index Study completed in 2024. In the coming fiscal year, this CIP commits $8 .2 million of cumulative Measure SST funds for parks and libraries, the Dee Hardison Sports Center, investments in public safety stations, and storm drains. Ultimately, the City plans to invest a total of $26.0 million in Measure SST over the next five years.

Project Type Project Location
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Facilities Attic Teen Center - - - - - 250,000 - Facilities Bartlett Senior Center 100,600 69,600 - - - - 917,860 Facilities Fire Station 1 657,223 195,411 - - - - - Facilities Fire Station 2 - - - - - 2,701,913 - Facilities Fire Station 4 - - - - - 873,860 - Facilities Fire Station 5 - - - - 2,120,742 - - Facilities Southeast Library - - - - - 1,316,118 - Facilities Torrance City Hall 225,000 713 - - - - - Facilities Torrance City Yard - - - 500,000 - - - Facilities Torrance Cultural Arts Center - - - 100,000 400,000 - - Facilities Torrance Police Department 200,000 41,700 810,000 539,210 713,870 - - Facilities Torrance Theatre - - - - 792,970 - - IT Infrastructure Torrance Cultural Arts Center - - - 145,000 - - - Operating Project CIT City-Wide - - - 1,000,000 - - - Operating Project Operating Project - Community Services - - 1,280,000 - - - - Parks Alta Loma Park 25,000 25,000 200,000 - - - - Parks Columbia Park 1,283,773 1,270,648 (1,061,840) 750,000 2,000,000 500,000 - Parks Dee Hardison Sports Center - - 300,000 - - - - Parks Delthorne Park 381,269 49,377 - - - - - Parks Guenser Park 197,750 171,050 - - - - - Parks Madrona Marsh Nature Center 90,000 90,000 - - - - - Parks Paradise Park 2,337,000 2,042,922 4,741,903 - - - - Parks Torrance Park 375,000 375,000 (375,000) 1,700,000 - - - Parks Walteria Library - - - - - - - Parks Walteria Park - - 1,700,000 - - - - Parks Wilson Park - - 206,652 - - - - Storm Drain/Basins Operating Project - Public Works 427,000 33,060 427,000 427,000 - - - Total Expenditures 6,299,615$ 4,364,481$ 8,228,715$ 5,161,210$ 6,027,582$ 5,641,891$ 917,860$ 188

174
Parks
The following section summarizes the planned
capital investments at parks across the City,
summarized by location. The City is planning to
invest $ 30.3 million over the next five years in
order to refurbish and improve our park’s
playgrounds, bathrooms, recreation areas and
other park amenities. As mentioned in the
Measure SST section of the Capital Improvement
Plan, a significant portion of this investment is made possible by the additional revenues generated by Measure SST.

Individual Project Details

Project Location
Project
ID
Life-to-Date
Budget
Life-to-Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Alta Loma Park PRK0001 375,000 375,000 5 70,000 - - - - Columbia Park PRK0002 6,283,773 5,621,128 3,938,160 750,000 4,950,000 3,600,000 - Delthorne Park PRK0004 381,269 49,377 - - - - - El Nido Park PRK0007 - - 400,000 - - - - Guenser Park PRK0012 197,750 171,050 302,250 - - - - La Carretera Park PRK0014 164,780 - - - - - - Lago Seco Park PRK0017 146,358 135,908 - - - - - Madrona Marsh Nature Center PRK0034 90,000 90,000 - - - - - Paradise Park PRK0022 2,787,000 2,492,922 6,891,903 - - - - Pueblo Park PRK0024 - - - - - 264,621 - Sea-Aire Park PRK0026 - - - - - 1,723,570 - Sunnyglen Park PRK0028 - - - - - 110,000 - Sur La Brea Park PRK0029 - - - - - 610,651 - Torrance Park PRK0030 375,000 375,000 (375,000) 2,325,000 - - - Victor Park PRK0031 - - - - 145,000 - - Walteria Park PRK0032 - - 1,700,000 - - - 1,000,000 Wilson Park PRK0033 1,878,984 1,800,605 1,400,000 - - - - Total Expenditures 12,679,914$ 11,110,990$ 14,827,313$ 3 ,075,000$ 5,095,000$ 6,308,842$ 1,000,000$ Alta Loma Park
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Replace Playground Equipment 375,000 375,000 570,000 - - - - Total Expenditures 375,000$ 375,000$ 570,000$ -$ -$ -$ -$ Funding Source(s)
Measure A 350,000 350,000 370,000 - - - - Measure SST Fund 25,000 25,000 200,000 - - - - Total Expenditures 375,000$ 375,000$ 570,000$ -$ -$ -$ -$ Alta Loma Park
26126 Delos Drive,Torrance, CA 90505 | District 6
189

175

Columbia Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Construct Dog Park 60,000 47,925 - - 750,000 - - Construct Turf Sport Fields - - - - - 3,100,000 - Master Planning and Design Services - - - 750,000 - - - Refurbish Bocce Courts 161,933 160,883 - - - - - Renovate Park Restrooms 300,530 300,530 (300,530) - 500,000 - - Renovate Picnic Shelters 586,310 586,310 (586,310) - 1,700,000 - - Replace Playground Equipment - - - - 2,000,000 - - Walking Path Replacement 175,000 175,000 (175,000) - - 500,000 - World War ll Camp Wall Monument 4,000,000 3,481,400 5,000,000 - - - - WWII Memorial Supporting Infrastructure
Improvements 1,000,000 869,080 - - - - - Total Expenditures 6,283,773$ 5,621,128$ 3,938,160$ 750,000$ 4,950,000$ 3,600,000$ -$ Funding Source(s)
Measure A - - - - 2,000,000 - - Other Grants 5,000,000 4,350,480 - - - 3,100,000 - General Fund - - 5,000,000 - - - - Measure SST Fund 1,283,773 1,270,648 (1,061,840) 750,000 2,000,000 500,000 - Parks & Rec Facilities Fund - - - - 250,000 - - Parks & Rec Open Space Fund - - - - 700,000 - - Total Expenditures 6,283,773$ 5,621,128$ 3,938,160$ 750,000$ 4,950,000$ 3,600,000$ -$ Columbia Park
4045 190th Street,Torrance, CA 90504 | District 3
Delthorne Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Park Restrooms 381,269 49,377 - - - - - Total Expenditures 381,269$ 49,377$ -$ -$ -$ -$ -$ Funding Source(s)
Measure SST Fund 381,269 49,377 - - - - - Total Expenditures 381,269$ 49,377$ -$ -$ -$ -$ -$ Delthorne Park
3401 Spencer Street,Torrance, CA 90503 | District 3
El Nido Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Park Switchhouse - - 400,000 - - - - Total Expenditures -$ -$ 400,000$ -$ -$ -$ -$ Funding Source(s)
Measure A - - 400,000 - - - - Total Expenditures -$ -$ 400,000$ -$ -$ -$ -$ El Nido Park
18301 Kingsdale Avenue,Redondo Beach, CA 90278 | District 3 190

176

Guenser Park
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Walking Path Replacement 197,750 171,050 302,250 - - - - Total Expenditures 197,750$ 171,050$ 302,250$ -$ -$ -$ -$ Funding Source(s)
Measure A - - 302,250 - - - - Measure SST Fund 197,750 171,050 - - - - - Total Expenditures 197,750$ 171,050$ 302,250$ -$ -$ -$ -$ 17800 Gramercy Place,Torrance, CA 90504 | District 1
Guenser Park
La Carretera Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Block Wall Replacement 164,780 - - - - - - Total Expenditures 164,780$ -$ -$ -$ -$ -$ -$ Funding Source(s)
General Fund 164,780 - - - - - - Total Expenditures 164,780$ -$ -$ -$ -$ -$ -$ La Carretera Park
2040 186th St,Torrance, CA 90503 | District 1
Lago Seco Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Sewer line installation 146,358 135,908 - - - - - Total Expenditures 146,358$ 135,908$ -$ -$ -$ -$ -$ Funding Source(s)
General Fund 146,358 135,908 - - - - - Total Expenditures 146,358$ 135,908$ -$ -$ -$ -$ -$ Lago Seco Park
3920 235th Street,Torrance, CA 90505 | District 5
Madrona Marsh Nature Center
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Replace Sump Pump 90,000 90,000 - - - - - Total Expenditures 90,000$ 90,000$ -$ -$ -$ -$ -$ Funding Source(s)
Measure SST Fund 90,000 90,000 - - - - - Total Expenditures 90,000$ 90,000$ -$ -$ -$ -$ -$ Madrona Marsh Nature Center
3201 Plaza del Amo, Torrance, CA 90503 | District 3
191

177

Paradise Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Design, Site work, Utilities, and Irrigation - - 6,076,303 - - - - Redesign/Replace Recreation Center 911,000 911,000 (911,000) - - - - Replace Picnic Shelter & Storage 711,000 416,922 (281,000) - - - - Replace Playground Equipment 350,000 350,000 822,600 - - - - Replace Restrooms & Recreation Center 815,000 815,000 1,185,000 - - - - Total Expenditures 2,787,000$ 2,492,922$ 6,891,903$ -$ -$ -$ -$ Funding Source(s)
Prop A M&S 350,000 350,000 350,000 - - - - Measure SST Fund 2,337,000 2,042,922 4,741,903 - - - - Parks & Rec Facilities Fund - - 300,000 - - - - Parks & Rec Open Space Fund - - 1,200,000 - - - - Donations 100,000 100,000 - - - - - Park Equipment Replacement Fund - - 300,000 - - - - Total Expenditures 2,787,000$ 2,492,922$ 6,891,903$ -$ -$ -$ -$ Paradise Park
5006 Lee Street,Torrance, CA 90503 | District 2
Pueblo Park
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Renovate Ruben Ordaz Community Center &
Picnic Shelters - - - - - 264,621 - Total Expenditures -$ -$ -$ -$ -$ 264,621$ -$ Funding Source(s)
Measure A - - - - - 264,621 - Total Expenditures -$ -$ -$ -$ -$ 264,621$ -$ Pueblo Park
2252 Del Amo Blvd,Torrance, CA 90504 | District 4
Sea-Aire Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Maintenance Building - - - - - 65,360 - Renovate Recreation Building - - - - - 758,210 - Replace Playground Equipment - - - - - 900,000 - Total Expenditures -$ -$ -$ -$ -$ 1,723,570$ -$ Funding Source(s)
Measure A - - - - - 1,723,570 - Total Expenditures -$ -$ -$ -$ -$ 1,723,570$ -$ Sea-Aire Park
22730 Lupine Drive,Torrance, CA 90505 | District 5
192

178

Sunnyglen Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Walking Path Replacement - - - - - 110,000 - Total Expenditures -$ -$ -$ -$ -$ 110,000$ -$ Funding Source(s)
Measure A - - - - - 110,000 - Total Expenditures -$ -$ -$ -$ -$ 110,000$ -$ Sunnyglen Park
5525 Del Amo Boulevard,Torrance, CA 90503 | District 2
Sur La Brea Park
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Renovate Recreation Building - - - - - 562,791 - Renovate Restroom - - - - - 47,860 - Total Expenditures -$ -$ -$ -$ -$ 610,651$ -$ Funding Source(s)
Measure A - - - - - 562,791 - General Fund - - - - - 47,860 - Total Expenditures -$ -$ -$ -$ -$ 610,651$ -$ Sur La Brea Park
23610 Cabrillo Avenue,Torrance, CA 90501 | District 4
Torrance Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Reconstruct Playing Courts - - - 1,325,000 - - - Replace Playground Equipment 375,000 3 75,000 (375,000) 1,000,000 - - - Torrance Park Revitalization 268,440 2 68,440 - - - - - Total Expenditures 643,440$ 6 43,440$ (375,000)$ 2,325,000$ -$ -$ -$ Funding Source(s)
Measure A - - - 625,000 - - - Other Grants 268,440 2 68,440 - - - - - Measure SST Fund 375,000 3 75,000 (375,000) 1,700,000 - - - Total Expenditures 643,440$ 6 43,440$ (375,000)$ 2,325,000$ -$ -$ -$ Torrance Park
2001 Santa Fe Avenue,Torrance, CA 90501 | District 4
193

179

Victor Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Replace Exercise Equipment at Victor Park - - - - 145,000 - - Total Expenditures -$ -$ -$ -$ 145,000$ -$ -$ Funding Source(s)
Parks & Rec Open Space Fund - - - - 145,000 - - Total Expenditures -$ -$ -$ -$ 145,000$ -$ -$ Victor Park
4727 Emerald St,Torrance, CA 90501 | District 2
Walteria Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Park/Library Design Developmenet - - - - - - 1,000,000 Reconstruct Playing Courts - - 1,700,000 - - - - Total Expenditures -$ -$ 1,700,000$ -$ -$ -$ 1,000,000$ Funding Source(s)
Measure SST Fund - - 1,700,000 - - - - Parks & Rec Open Space Fund - - - - - - 1,000,000 Total Expenditures -$ -$ 1,700,000$ -$ -$ -$ 1,000,000$ Walteria Park
3855 242nd Street,Torrance, CA 90505 | District 6
Wilson Park
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Construct Pickleball Courts 1,526,119 1,526,119 - - - - - Redevelopment of Building 8 202,865 149,527 700,000 - - - - Street Frontage Improvements 150,000 124,959 700,000 - - - - Total Expenditures 1,878,984$ 1,800,605$ 1,400,000$ -$ -$ -$ -$ Funding Source(s)
General Fund 1,728,984 1,675,646 493,348 - - - - Measure SST Fund - - 206,652 - - - - Parks & Rec Open Space Fund 150,000 124,959 700,000 - - - - Total Expenditures 1,878,984$ 1,800,605$ 1,400,000$ -$ -$ -$ -$ Wilson Park
2200 Crenshaw Boulevard,Torrance, CA 90501 | District 4 194

180
Facilities
The following section summarizes the planned
capital investments at recreation facilities,
service facilities, and other public facilities
across the City, summarized by location. The City
is planning to invest $ 32.7 million over the next
five years in order to maintain and modernize
these facilities in order to ensure that our
community can continue to benefit from the
valuable services that they provide. As
mentioned in the Measure SST section of the Capital Improvement Plan, a significant portion of this investment is made possible by the additional revenues generated by Measure SST.

Project Location
Project
ID
Life-to-Date
Budget
Life-to-Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Attic Teen Center FAC0025 - - - - - 806,470 - Bartlett Senior Center FAC0019 100,600 69,600 - - - - 917,860 Dee Hardison Sports Center FAC0030 - - 300,000 - - - - Fire Station 1 FAC0010 961,723 445,441 450,000 - - - - Fire Station 2 FAC0011 - - - - - 2,701,913 - Fire Station 4 FAC0013 - - - - - 873,860 - Fire Station 5 FAC0014 - - - - 2,120,742 - - Herma Tillim Senior Center FAC0023 970,663 933,655 - - - - - Las Canchas Tennis Center FAC0027 - - - - - - 322,350 Southeast Library FAC0005 - - - - - 1,316,118 - Torrance City Hall FAC0007 4,053,791 2,985,382 685,640 500,000 - 870,950 Torrance City Yard FAC0021 - - 2,440,000 1,680,000 1,500,000 - Torrance Cultural Arts Center FAC0009 306,729 152,244 225,000 100,000 400,000 - - Torrance Municipal Airport FAC0017 3,185,964 2,480,248 3,330,850 2,350,290 1,370,210 3,063,660 - Torrance Police Department FAC0016 379,000 191,700 1,060,000 539,210 713,870 - - Torrance Regional Transit Center FAC0022 145,800 122,079 1,250,000 - - - - Torrance Theatre FAC0029 - - - - 792,970 - - Total Expenditures 10,104,270$ 7,380,348$ 9,741,490$ 5,169,500$ 6,897,792$ 9 ,632,971$ 1,240,210$ 195

181
Individual Project Details

Attic Teen Center
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Renovate Center Facilities - - - - - 806,470 - Total Expenditures -$ -$ -$ -$ -$ 806,470$ -$ Funding Source(s)
Measure SST Fund - - - - - 250,000 - Parks & Rec Facilities Fund - - - - - 556,470 - Total Expenditures -$ -$ -$ -$ -$ 806,470$ -$ Attic Teen Center
2320 W Carson St, Torrance, CA 90501 | District 4
Bartlett Senior Center
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Renovate Center Facilities - - - - - - 917,860 Second Story Walk Deck Repair 1 00,600 69,600 - - - - - Total Expenditures 100,600$ 69,600$ -$ -$ -$ -$ 917,860$ Funding Source(s)
Measure SST Fund 100,600 69,600 - - - - 917,860 Total Expenditures 100,600$ 69,600$ -$ -$ -$ -$ 917,860$ Bartlett Senior Center
1318 Cravens Ave, Torrance, CA 90501 | District 4
Dee Hardison Sports Center
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Center Facilities - - 300,000 - - - - Total Expenditures -$ -$ 300,000$ -$ -$ -$ -$ Funding Source(s)
Measure SST Fund - - 300,000 - - - - Total Expenditures -$ -$ 300,000$ -$ -$ -$ -$ Dee Hardison Sports Center
2400 Jefferson St, Torrance, CA 90501 | District 4
196

182

Fire Station 1
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Fire Station 424,223 184,451 - - - - - Replace Audio/Visual Equipment in Training
Room 54,500 30 - - - - - Replace Generator and Renovate EOC 483,000 260,960 450,000 - - - - Total Expenditures 961,723$ 445,441$ 450,000$ -$ -$ -$ -$ Funding Source(s)
Other Grants 250,000 250,000 450,000 - - - - General Fund 54,500 30 - - - - - Measure SST Fund 657,223 195,411 - - - - - Total Expenditures 961,723$ 445,441$ 450,000$ -$ -$ -$ -$ Fire Station 1
1701 Crenshaw Blvd, Torrance, CA 90501 | District 3
Fire Station 2
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Renovate Fire Station - - - - - 2,701,913 - Total Expenditures -$ -$ -$ -$ -$ 2,701,913$ -$ Funding Source(s)
Measure SST Fund - - - - - 2,701,913 - Total Expenditures -$ -$ -$ -$ -$ 2,701,913$ -$ Fire Station 2
25135 Robinson Way, Torrance, CA 90505 | District 6
Fire Station 4
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Fire Station - - - - - 873,860 - Total Expenditures -$ -$ -$ -$ -$ 873,860$ -$ Funding Source(s)
Measure SST Fund - - - - - 873,860 - Total Expenditures -$ -$ -$ -$ -$ 873,860$ -$ Fire Station 4
5205 C. Mayor, Torrance, CA 90505 | District 5
Fire Station 5
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Fire Station - - - - 2,120,742 - - Total Expenditures -$ -$ -$ -$ 2,120,742$ -$ -$ Funding Source(s)
Measure SST Fund - - - - 2,120,742 - - Total Expenditures -$ -$ -$ -$ 2,120,742$ -$ -$ Fire Station 5
3940 Del Amo Blvd, Torrance, CA 90503 | District 2
197

183

Herma Tillim Senior Center
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Center Facilities 970,663 933,655 - - - - - Total Expenditures 970,663$ 933,655$ -$ -$ -$ -$ -$ Funding Source(s)
Parks & Rec Open Space Fund 970,663 933,655 - - - - - Total Expenditures 970,663$ 933,655$ -$ -$ -$ -$ -$ Herma Tillim Senior Center
3612 Artesia Blvd, Torrance, CA 90504 | District 1
Las Canchas Tennis Center
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Center Facilities - - - - - - 322,350 Total Expenditures -$ -$ -$ -$ -$ -$ 322,350$ Funding Source(s)
Parks & Rec Open Space Fund - - - - - - 322,350 Total Expenditures -$ -$ -$ -$ -$ -$ 322,350$ Las Canchas Tennis Center
25924 Rolling Hills Rd, Torrance, CA 90505 | District 6 Southeast Torrance Library
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Library Facilities - - - - - 1,316,118 - Total Expenditures -$ -$ -$ -$ -$ 1,316,118$ -$ Funding Source(s)
Measure SST Fund - - - - - 1,316,118 - Total Expenditures -$ -$ -$ -$ -$ 1,316,118$ -$ Southeast Torrance Library
23115 Arlington Ave, Torrance, CA 90504 | District 4
198

184

Torrance City Hall
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Cable Building Repipe - - 100,000 City Manager’s Office Kitchen Improvements 75,000 - Renovate City Attorney's Office - - 75,000 Renovate Council Area - - 250,000 Renovate Employee Lounge - - 250,000 Renovate Fire Prevention Building 186,535 7 8,904 Renovate GIS and Building & Safety Building 2,824,855 2 ,452,286 Renovate Main Building 388,401 2 23,292 10,640 - - 870,950 Renovate Restrooms - - 500,000 Renovate West Annex Roofing and Interiors 225,000 7 13 Renovations for West Annex CIT Area 230,000 2 30,000 Replace Audio/Visual Equipment in Meeting
Rooms 124,000 1 86
Total Expenditures 4,053,791$ 2 ,985,382$ 685,640$ 500,000$ -$ 870,950$ -$ Funding Source(s)
2016 Certificate of Participation 1,427,755 1 ,427,755 General Fund 2,401,036 1 ,556,914 685,640 - - 870,950 Measure SST Fund 225,000 7 13 500,000 Total Expenditures 4,053,791$ 2 ,985,382$ 685,640$ 500,000$ -$ 870,950$ -$ Torrance City Hall
3031 Torrance Blvd, Torrance, CA 90503 | District 3
Torrance City Yard
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Install EV Chargers - - 175,000 1,000,000 1,500,000 - - Motor and Mower Shop Exhaust Installation - - 150,000 - - - - Remove Loading Dock - - 200,000 - - - - Renovate Fleet Services Offices - - 315,000 - - - - Replace Car Wash - - - 680,000 - - - Replace Roof City Yard Services Building - - 1,600,000 - - - - Total Expenditures -$ -$ 2,440,000$ 1,680,000$ 1,500,000$ -$ -$ Funding Source(s)
General Fund - - 1,915,000 Fleet Services Capital Fund - - 350,000 1,455,000 1,500,000 AQMD - - 175,000 225,000 - - Total Expenditures -$ -$ 2,440,000$ 1,680,000$ 1,500,000$ -$ -$ 20500 Madrona Ave, Torrance, CA 90503 | District 3
Torrance City Yard
199

185

Torrance Cultural Arts Center
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Armstrong Theatre Lobby Restroom Remodel - - - - 200,000 - - Armstrong Theatre Rigging System - - 125,000 - - - - Armstrong Theatre Sound & Lighting
Upgrade 219,159 1 47,239 - - - - - Exterior Lighting - - 100,000 - - - - Nakano Theater Roof Replacement 87,570 5,005 - - - - - Nakano Theatre Curtain Replacement - - - 100,000 - - - Toyota Meeting Hall Restroom Remodel - - - - 200,000 - - Total Expenditures 306,729$ 152,244$ 225,000$ 100,000$ 400,000$ -$ -$ Funding Source(s)
General Fund 306,729 152,244 225,000 - - - - Measure SST Fund - - - 100,000 400,000 - - Total Expenditures 306,729$ 152,244$ 225,000$ 100,000$ 400,000$ -$ -$ Torrance Cultural Arts Center
3330 Civic Center Dr, Torrance, CA 90503 | District 3
Torrance Municipal Airport
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Airport Main Runway Rehabilitation 793,965 544,965 - - - - - Airport Taxiway Lighting and Wire
Replacement 573,660 498,270 - - - - - Implement Automated Weather Observing
System 352,000 120,658 - - - - - Refurbish Roadways 29,940 12,040 - - - 108,890 - Renovate Airport Hangars 143,930 11,845 730,850 2,350,290 1,370,210 772,520 - Renovate Airport Traffic Control Tower 1,292,470 1,292,470 - - - - - Renovate General Aviation Center - - - - - 2,182,250 - Taxiway Lighting Replacement - - 2,600,000 - - - - Total Expenditures 3,185,964$ 2,480,248$ 3,330,850$ 2,350,290$ 1,370,210$ 3,063,660$ -$ Funding Source(s)
Airport Capital Project Fund 3,185,964 2,480,248 3,330,850 2,350,290 1,370,210 3,063,660 - Total Expenditures 3,185,964$ 2,480,248$ 3,330,850$ 2,350,290$ 1,370,210$ 3,063,660$ -$ Torrance Municipal Airport
3301 Airport Dr, Torrance, CA 90505 | District 6
200

186

Torrance Police Department
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Implement Jail Upgrades 150,000 150,000 - - - - - Renovate Department Facilities 229,000 41,700 750,000 539,210 713,870 - - Replacement of HVAC Condenser - - 60,000 - - - - Uninterrupted Power Supply Replacement - - 250,000 - - - - Total Expenditures 379,000$ 191,700$ 1,060,000$ 539,210$ 713,870$ -$ -$ Funding Source(s)
Other Grants - - 250,000 - - - - General Fund 179,000 150,000 - - - - - Measure SST Fund 200,000 41,700 810,000 539,210 713,870 - - Total Expenditures 379,000$ 191,700$ 1,060,000$ 539,210$ 713,870$ -$ -$ Torrance Police Department
3300 Civic Center Dr N, Torrance, CA 90503 | District 3 Torrance Regional Transit Center
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Electrical upgrades - - 250,000 - - - - Tenant Space Enhancements 145,800 122,079 1,000,000 - - - - Total Expenditures 145,800$ 122,079$ 1,250,000$ -$ -$ -$ -$ Funding Source(s)
Transit Capital Fund 145,800 122,079 1,250,000 - - - - Total Expenditures 145,800$ 122,079$ 1,250,000$ -$ -$ -$ -$ Torrance Regional Transit Center
485 Crenshaw Blvd, Torrance, CA 90501 | District 3
Torrance Theatre
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Renovate Theatre Building - - - - 792,970 - - Total Expenditures -$ -$ -$ -$ 792,970$ -$ -$ Funding Source(s)
Measure SST Fund - - - - 792,970 - - Total Expenditures -$ -$ -$ -$ 792,970$ -$ -$ Torrance Theatre
1316 Cabrillo Ave, Torrance, CA 90501 | District 4
201

187
IT Infrastructure
The following section summarizes the planned
capital investments in the physical infrastructure
and major architecture needed to support the
City’s communication and information systems .

The City is planning to invest $ 370,000 over the
next five years in order to maintain and modernize
citywide IT infrastructure and ensure our
community can continue to benefit from the
valuable services that they provide.

Individual Project Details

Project Title
Project
ID
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
CBRS Private Cell Network CIT0001 170,000 170,000 - - - - - Customer Service Enhancement OP50 - - 40,000 - - - - Garden Room Audio Visual FAC0009 - - - 35,000 - - - Ken Miller Auditorium and Assembly Room Audio Visual FAC0009 - - - 110,000 - - - Nakano Theater Audio Visual Renovation FAC0009 - - 100,000 - - - - Toyota Meeting Hall Audio Visual Renovation FAC0009 - - 85,000 - - - - Total Expenditures 170,000$ 170,000$ 225,000$ 145,000$ -$ -$ -$ Torrance Police Department
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
CBRS Private Cell Network 170,000 170,000 - - - - - Total Expenditures 170,000$ 170,000$ -$ -$ -$ -$ -$ Funding Source(s)
DIF - Police 170,000 170,000 - - - - - Total Expenditures 170,000$ 170,000$ -$ -$ -$ -$ -$ Torrance Police Department
3300 Civic Center Dr N, Torrance, CA 90503 | District 3 202

188

Torrance City Hall
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Customer Service Enhancement - - 40,000 - - - - Total Expenditures -$ -$ 40,000$ -$ -$ -$ -$ Funding Source(s)
General Fund - - 40,000 - - - - Total Expenditures -$ -$ 40,000$ -$ -$ -$ -$ Torrance City Hall
3031 Torrance Blvd, Torrance, CA 90503 | District 3
Torrance Cultural Arts Center
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Garden Room Audio Visual - - - 35,000 - - - Ken Miller Auditorium and Assembly Room
Audio Visual - - - 110,000 - - - Nakano Theater Audio Visual Renovation - - 100,000 - - - - Toyota Meeting Hall Audio Visual Renovation - - 85,000 - - - - Total Expenditures -$ -$ 185,000$ 145,000$ -$ -$ -$ Funding Source(s)
General Fund - - 185,000 - - - - Measure SST Fund - - - 145,000 - - - Total Expenditures -$ -$ 185,000$ 145,000$ -$ -$ -$ Torrance Cultural Arts Center
3330 Civic Center Dr, Torrance, CA 90503 | District 3
203

189
Public Right of Way (Streets)
This section summarizes the planned capital
investment in the public right of way areas such
as streets and sidewalks, in the City. The City is
planning to invest $ 99.2 million over the next
five years in order to maintain and improve the
safety and accessibility of our streets for all
users.

Individual Project Details

Project Title
Project
ID
Life-to-Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Anza Ave Rehabilitation (190th to Sepulveda) I 144 5,684,236 430,390 - - - - - Anza/Vista Montana/PCH Intersection Improvements T 154 640,152 277,158 - - - - - Arterial Street Pavement Sealing Program I 139 12,289,042 4,658,953 3,525,000 3,700,000 3,675,000 3,280,000 3,675,000 Beach Cities Green Streets Project S 194 7,695,796 7,452,843 - - - - - Bridge Preventative Maintenance Program I 124 129,628 129,628 - - - - - Cabrillo Ave Redesign ROW0001 - - 2,075,000 - - - - Citywide Sidewalk Ramping/Grinding Program I 152 250,000 250,000 200,000 200,000 200,000 200,000 200,000 Citywide Traffic Engineering and Improvements T 190 263,020 263,020 400,000 400,000 400,000 400,000 400,000 Citywide Traffic Signal Improvements T 171 628,891 345,182 500,000 1,746,798 957,267 250,000 250,000 COT Fiber Network and Traffic Signal Optimization T 195 716,162 716,162 200,000 200,000 200,000 - - Crenshaw Blvd & PCH Intersection Improvements-Phase 1 T 143 878,083 686,957 - - - - - Hawthorne Blvd Right-Turn Lanes at Lomita Blvd & 182nd St T 196 75,500 75,500 269,500 - - - - I-405 AT 182nd St/Crenshaw Blvd operational improvements T 155 5,132,293 3,894,231 - - - - - Intersection Improvements-Pacific Coast Hwy/Hawthorne Blvd T 131 1,856,022 136,789 - - - - - Prairie Avenue Bridge Rehabilitations I 148 3,749,950 3,678,416 - - - - - Residential Slurry Seal Program I 159 20,135,924 7,994,942 7,425,000 7,300,000 7,400,000 7,600,000 7,400,000 Sepulveda Soundwall Repair NEW - - 100,000 100,000 - - - Sidewalk Improvements for Disabled Accessibility I 135 3,099,072 1,229,636 1,339,333 1,239,333 1,239,333 1,239,333 1,239,333 T-45 Hawthorne Blvd Rehab (PCH to South City Limit) T 045 286,227 280,687 - - - - - Torrance School Safety and Accessibility Program I 188 10,406,686 5,666,768 19,100,000 9,000,000 - - - Total Expenditures 73,916,685$ 38,167,261$ 35,133,833$ 23,886,131$ 14,071,600$ 12,969,333$ 13,164,333$ Funding Source(s)
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Other Grants 2,365,737 4,472 - - - - - Donations 44,800 - - - - - - Gas Tax 2,102,580 425,918 - - - - - Measure R Local Return 250,000 - - - - - - Prop C Local Return 921,118 - - - - - - Total Expenditures 5,684,236$ 430,390$ -$ -$ -$ -$ -$ Anza Ave Rehabilitation (190th to Sepulveda) (I 144)
204

190

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure R Grant 640,152 277,158 - - - - - Total Expenditures 640,152$ 277,158$ -$ -$ -$ -$ -$ Anza/Vista Montana/PCH Intersection Improvements (T 154) Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Airport Capital Project Fund 46,000 - - - - - - Measure R Local Return 5,460,960 2,243,800 625,000 800,000 1,075,000 480,000 1,075,000 Prop C Local Return 6,782,082 2,415,153 2,900,000 2,900,000 2,600,000 2,800,000 2,600,000 Total Expenditures 12,289,042$ 4,658,953$ 3,525,000$ 3,700,000$ 3,675,000$ 3,280,000$ 3,675,000$ Arterial Street Pavement Sealing Program (I 139)
Funding Source(s)
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Other Grants 1,587,782 1,469,087 - - - - - General Fund 144,124 50,972 - - - - - Measure W 5,917,560 5,917,560 - - - - - Sewer Capital Project Fund 46,330 15,224 - - - - - Total Expenditures 7,695,796$ 7,452,843$ -$ -$ -$ -$ -$ Beach Cities Green Streets Project (S 194)
-
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Gas Tax 129,628 129,628 - - - - - Total Expenditures 129,628$ 129,628$ -$ -$ -$ -$ -$ Bridge Preventative Maintenance Program (I 124)
205

191

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants - - 719,000 - - - - SB1 - - 1,356,000 - - - - Total Expenditures -$ -$ 2,075,000$ -$ -$ -$ -$ Cabrillo Ave Redesign (ROW0001)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure R Local Return 250,000 250,000 200,000 200,000 200,000 200,000 200,000 Total Expenditures 250,000$ 250,000$ 200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Citywide Sidewalk Ramping/Grinding Program (I 152)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Gas Tax 263,020 263,020 400,000 400,000 400,000 400,000 400,000 Total Expenditures 263,020$ 263,020$ 400,000$ 400,000$ 400,000$ 400,000$ 400,000$ Citywide Traffic Engineering and Improvements (T 190)
Funding Source(s)
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
Other Grants - - - 1,184,298 394,767 - - Gas Tax 129,702 44,229 250,000 250,000 250,000 250,000 250,000 Measure R Local Return 123,955 112,842 62,500 62,500 62,500 - - Prop C Local Return 375,233 188,110 187,500 250,000 250,000 - - Total Expenditures 628,891$ 345,182$ 500,000$ 1,746,798$ 957,267$ 250,000$ 250,000$ Citywide Traffic Signal Improvements (T 171)
206

192

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure M Local Return 116,667 116,667 200,000 200,000 200,000 - - DIF - Transportation 599,495 599,495 - - - - - Total Expenditures 716,162$ 716,162$ 200,000$ 200,000$ 200,000$ -$ -$ Fiber Network and Traffic Signal Optimization ( T 195)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure R Grant 300,083 108,957 - - - - - DIF - Transportation 578,000 578,000 - - - - - Total Expenditures 878,083$ 686,957$ -$ -$ -$ -$ -$ Crenshaw Blvd & PCH Intersection Improvements (T 195)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure M Grant - - 245,000 - - - - Measure M Local Return 75,500 75,500 24,500 - - - - Total Expenditures 75,500$ 75,500$ 269,500$ -$ -$ -$ -$ Hawthorne Boulevard Right-Turn Lanes (T 196)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure R Grant 5,132,293 3,894,231 - - - - - Total Expenditures 5,132,293$ 3,894,231$ -$ -$ -$ -$ -$ I-405 AT 182nd St/Crenshaw Blvd Operational Improvements (T 155) Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure R Grant 1,856,022 136,789 - - - - - Total Expenditures 1,856,022$ 136,789$ -$ -$ -$ -$ -$ Intersection Improvements-Pacific Coast Hwy/Hawthorne Blvd (T 131) 207

193

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants 17,540 82 - - - - - Gas Tax 332,410 278,334 - - - - - Prop C Local Return 3,400,000 3,400,000 - - - - - Total Expenditures 3,749,950$ 3,678,416$ -$ -$ -$ -$ -$ Prairie Avenue Bridge Rehabilitations (I 148)
Funding Source(s)
Life-to-
Date
B
udget
Life-to-
Date
B
alance
FY25-26
Proposed
B
udget
FY26-27
Projected
B
udget
FY27-28
Projected
B
udget
FY28-29
Projected
B
udget
FY29-30
Projected
B
udget
General Fund 327,627 118,256 300,000 300,000 300,000 300,000 300,000 Gas Tax 3,935,000 385,000 600,000 600,000 100,000 100,000 100,000 Measure R Local Return 1,360,000 1,360,000 1,660,000 1,500,000 1,500,000 1,500,000 1,500,000 SB1 11,566,585 4,493,686 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000 Measure M Local Return 2,946,712 1,638,000 1,265,000 1,300,000 1,900,000 2,100,000 1,900,000 Total Expenditures 20,135,924$ 7,994,942$ 7,425,000$ 7,300,000$ 7,400,000$ 7,600,000$ 7,400,000$ Residential Slurry Seal Program (I 159)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Gas Tax - - 100,000 100,000 - - - Total Expenditures -$ -$ 100,000$ 100,000$ -$ -$ -$ Sepulveda Soundwall Repair (New)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants 123 123 - - - - - Donations 1,500 - - - - - - SB1 78,833 78,833 - - - - - Measure M Local Return 2,700,000 1,003,515 450,000 450,000 450,000 450,000 450,000 Prop A Local Return 263 263 - - - - - TDA Article 3 Bicycle Fund 253,498 146,900 206,000 106,000 106,000 106,000 106,000 CDBG Fund 64,855 2 683,333 683,333 683,333 683,333 683,333 Total Expenditures 3,099,072$ 1,229,636$ 1,339,333$ 1,239,333$ 1,239,333$ 1,239,333$ 1,239,333$ Sidewalk Repair for Handicap Accessibility (I 135)
208

194

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
General Fund 7,900 7,900 - - - - - Gas Tax 278,327 272,787 - - - - - Total Expenditures 286,227$ 280,687$ -$ -$ -$ -$ -$ Hawthorne Blvd Rehab (PCH to South City Limit) (T 045)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure M Grant 6,964,766 2,889,210 17,000,000 8,100,000 - - - Measure M Local Return 3,441,920 2,777,558 2,100,000 900,000 - - - Total Expenditures 10,406,686$ 5,666,768$ 19,100,000$ 9,000,000$ -$ -$ -$ Torrance School Safety and Accessibility Program (I 188) 209

195
Sewer/Water Utilities
This section summarizes the planned capital
investment in the Sewer and Water utilities
throughout the City. The City is planning to
invest $38.7 million over the next five years to
support the infrastructure that ensures the
quality and reliability of our utility services.

Individual Project Details

Project Title
Project
ID
Life-to-Date
Budget
Life-to-Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Airport Emergency Water Supply Line UTL0001 - - 800,000 - - - - Citywide Sewer System Improvements I 191 5,173,705 5,173,705 1,300,000 1,400,000 1,400,000 1,400,000 1,400,000 Del Amo 5 Sewer Project I 176 1,814,409 1,814,409 500,000 - - - - Dominguez Channel BMP Project I 185 3,821 3,821 500,000 - 5,000,000 2,500,000 - High Pressure Zone Modifications I 186 1,995,367 1,923,612 1,000,000 1,000,000 1,000,000 - - Madrona Ave Utility Undergrounding District NEW - - - - 3,893,306 - - Misc Water Main Repl for Developer & Street Rehab Projects I 153 18,500,000 7,136,998 - 200,000 2,800,000 200,000 - On-Site Recycled Water Retrofits I 184 487,399 487,399 300,000 - - - - Park Improvements for Well Field Project PRK0014 - - - 500,000 - - - Paseo de la Playa Residential Undergrounding I 175 340,211 340,211 - - - - - Sewer System Master Plan/Hydraulic Model I 168 - - 100,000 - - - - Undergrounding Overhd Util/Inst St Lights-PVBlvd bet. Torr/SeI 156 1,457,159 1,457,159 400,000 400,000 400,000 400,000 400,000 Utility Undergrounding Administration I 182 154,485 154,485 50,000 50,000 50,000 50,000 50,000 Van Ness Ave Water Wells & Transmission Main I 145 18,741,432 2,545,140 1,000,000 2,000,000 2,000,000 3,800,000 - Walteria Slope Reservoir Repair I 181 997,346 997,346 500,000 - - - - Total Expenditures 49,665,333$ 22,034,284$ 6,450,000$ 5,550,000$ 16,543,306$ 8,350,000$ 1,850,000$ Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Airport Capital Project Fund - - 800,000 - - - - Total Expenditures -$ -$ 800,000$ -$ -$ -$ -$ Airport Emergency Water Supply Line (UTL0001)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Sewer Capital Project Fund 5,164,705 5,164,705 1,300,000 1,400,000 1,400,000 1,400,000 1,400,000 DIF - Sewer 9,000 9,000 - - - - - Total Expenditures 5,173,705$ 5,173,705$ 1,300,000$ 1,400,000$ 1,400,000$ 1,400,000$ 1,400,000$ Citywide Sewer System Improvements (I 191)
210

196

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
General Fund 214,409 214,409 - - - - - Sewer Capital Project Fund 1,600,000 1,600,000 500,000 - - - - Total Expenditures 1,814,409$ 1,814,409$ 500,000$ -$ -$ -$ -$ Del Amo 5 Sewer Project (I 176)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure W 3,821 3,821 500,000 - 5,000,000 2,500,000 - Total Expenditures 3,821$ 3,821$ 500,000$ -$ 5,000,000$ 2,500,000$ -$ Dominguez Channel BMP Project (I 186)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Water Capital Fund 1,995,367 1,923,612 1,000,000 1,000,000 1,000,000 - - Total Expenditures 1,995,367$ 1,923,612$ 1,000,000$ 1,000,000$ 1,000,000$ -$ -$ High Pressure Zone Modifications (I 186)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants - - - - 3,893,306 - - Total Expenditures -$ -$ -$ -$ 3,893,306$ -$ -$ Madrona Ave Utility Undergrounding District (NEW)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Water Capital Fund 18,500,000 7,136,998 - 200,000 2,800,000 200,000 - Total Expenditures 18,500,000$ 7,136,998$ -$ 200,000$ 2,800,000$ 200,000$ -$ Miscellaneous Water Main Replacements (I 153)
211

197

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Water Capital Fund 487,399 487,399 300,000 - - - - Total Expenditures 487,399$ 487,399$ 300,000$ -$ -$ -$ -$ On-Site Recycled Water Retrofits (I 184)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Water Capital Fund - - - 500,000 - - - Total Expenditures -$ -$ -$ 500,000$ -$ -$ -$ Park Improvements for Well Field Project (PRK0014)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
General Fund 340,211 340,211 - - - - - Total Expenditures 340,211$ 340,211$ -$ -$ -$ -$ -$ Paseo de la Playa Residential Undergrounding (I 175)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Sewer Capital Project Fund - - 100,000 - - - - Total Expenditures -$ -$ 100,000$ -$ -$ -$ -$ Sewer System Master Plan/Hydraulic Model (I 168)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
DIF - Utility Underground 1,457,159 1,457,159 400,000 400,000 400,000 400,000 400,000 Total Expenditures 1,457,159$ 1,457,159$ 400,000$ 400,000$ 400,000$ 400,000$ 400,000$ Undergrounding Overhd Util/Inst St Lights-PVBlvd bet. Torr/Sepul (I 156) 212

198

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
DIF - Utility Underground 154,485 154,485 50,000 50,000 50,000 50,000 50,000 Total Expenditures 154,485$ 154,485$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ Utility Undergrounding Administration (I 182)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants 740,000 740,000 - - - - - Water Capital Fund 2,001,432 1,001,432 1,000,000 2,000,000 2,000,000 3,800,000 - Water State Revolving Fund 16,000,000 803,708 - - - - - Total Expenditures 18,741,432$ 2,545,140$ 1,000,000$ 2,000,000$ 2,000,000$ 3,800,000$ -$ Van Ness Ave Water Wells & Transmission Main (I 145)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Water Capital Fund 997,346 997,346 500,000 - - - - Total Expenditures 997,346$ 997,346$ 500,000$ -$ -$ -$ -$ Walteria Slope Reservoir Repair (I 181)
213

199
Storm Drains/Basins
This section summarizes the planned capital
investment in our storm drain and storm water
basin infrastructure. The City is planning to
invest $ 27.8 million over the next f ive years to
ensure that our storm water infrastructure is
prepared to handle the increasing severity of
climate events.

Individual Project Details

Project Title
Project
ID
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Citywide Storm Drain Replacement & Installation I 192 10,081,412 7,323,728 100,000 1,605,000 1,605,000 1,355,000 1,355,000 North Torrance Well Field-Predesign I108 2,041,843 8,865 150,000 - - - - Paseo de la Playa Slope and Storm Drain Repair I 180 12,642 12,642 - - - - - Stormwater Basin Expansion Project I 179 721,192 407,655 - - - - - Torrance Airport Storm Water Basin Project I 174 522,349 25,818 9,438,000 7,100,000 4,884,402 256,000 - Total Expenditures 13,379,438$ 7,778,708$ 9,688,000$ 8,705,000$ 6,489,402$ 1,611,000$ 1,355,000$ Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants 867,075 768,354 - - - - - Measure W 7,864,937 5,781,552 - 1,505,000 1,505,000 1,255,000 1,255,000 DIF - Storm Drain 1,349,400 773,822 100,000 100,000 100,000 100,000 100,000 Total Expenditures 10,081,412$ 7,323,728$ 100,000$ 1,605,000$ 1,605,000$ 1,355,000$ 1,355,000$ Citywide Storm Drain Replacement and Installation (I 192) Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants 297,745 64 - - - - - Water Capital Fund 1,744,098 8,801 150,000 - - - - Total Expenditures 2,041,843$ 8,865$ 150,000$ -$ -$ -$ -$ North Torrance Well Field-Predesign (I 108)
214

200

Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure R Local Return 12,642 12,642 - - - - - Total Expenditures 12,642$ 12,642$ -$ -$ -$ -$ -$ Paseo de la Playa Slope and Storm Drain Repair (I 180)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Measure W Grant 721,192 407,655 - - - - - Total Expenditures 721,192$ 407,655$ -$ -$ -$ -$ -$ Stormwater Basin Expansion Project (I 179)
Funding Source(s)
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
Other Grants - - 2,938,000 - - - - Measure W Grant 517,677 21,146 6,500,000 7,100,000 4,884,402 256,000 - General Fund 4,673 4,673 - - - - - Total Expenditures 522,349$ 25,818$ 9,438,000$ 7,100,000$ 4,884,402$ 256,000$ -$ Torrance Airport Storm Water Basin Project (I 174)
215

201
Operating Projects
The following section summarizes projects that are categorized by the department who is responsible for each project and should the capital project require maintenance, will be budgeted in the respective department’s operating budget in the following year(s). The City is planning to dedicate $10.4 million over the next five years to address these other areas of needed investment.

Project Title
Project
ID
Life-to-
Date
Budget
Life-to-
Date
Balance
FY25-26
Proposed
Budget
FY26-27
Projected
Budget
FY27-28
Projected
Budget
FY28-29
Projected
Budget
FY29-30
Projected
Budget
3D GIS Mapping/Cyclomedia OP49 - - 140,000 - - 140,000 - Accela Continuous Improvement Initatives OP50 50,000 50,000 - - - - - AssetWorks Software Implementation OP50 121,000 121,000 - - - - - Automated Meter Integration Upgrade OP83 6,600,000 100,000 - 800,000 - - - Bollard Replacement at Wilson Park OP93 - - 105,000 - - - - Citywide Asset Inventory OP83 - - 400,000 - - - Citywide Event Perimeter Protection Measures OP83 - - 150,000 - - - - Citywide Facility Reservation System OP50 - - 100,000 - - - - Citywide Parks Master Plan OP93 - - 300,000 - - - - Citywide Traffic Analysis OP83 - - 500,000 - - - Citywide Tree Planting Program OP83 427,000 3 3,060 427,000 427,000 - - - Citywide Web Redesign OP50 450,000 318,779 70,000 - - - - Civic Center Master Plan OP41 - - 660,000 200,000 - - - Del Amo Fashion Center PCC OP70 100,000 100,000 393,350 - - - - EA Properties Remediation OP95 2,500,000 1,193,191 - - - - - Electronic Content Management Enhancement (Laserfiche) OP50 102,861 102,861 - - - - - Electronic Plan Submittal and Review OP49 500,000 459,440 - - - - - Emergency Operations Center (EOC) Upgrade OP70 75,000 75,000 40,000 - - - - Emergency Slope Stabilization at 4812 Newton Street OP83 200,000 75,815 - - - - - Enterpise Resource Planning System Replacement OP50 - - 620,000 2,000,000 1,000,000 - - Enterprise Cashiering OP50 195,000 195,000 - - - - - EV Chargers For Park & Library Facilities OP53 - - 50,000 - - - - Fire Modernization OP50 - - 300,000 - - - - GIS System Upgrade OP50 135,000 82,000 150,000 200,000 25,000 - - Land Use/Safety Element OP49 146,012 146,012 100,000 - - - - New Citizen Engagement for Web & Mobile (Mobile App Development) OP50 65,000 65,000 30,000 - - - - Park Lighting Replacement and Repair OP93 385,862 161,464 - - - - - Police IT Remediation OP50 250,000 199,816 - - - - - Public Safety Element Update / Environmental Justice OP49 245,000 46,776 - - - - - Refurbish Amenities at Sea-Aire Park OP93 16,424 16,424 (16,424) - - - - Refurbish Amenities at Sur La Brea Park OP93 80,270 59,372 (59,372) - - - - Relocate Tarplant Preserve OP41 - - 100,000 - - - - Remediate Soil at RTC Site OP41 46,954 46,954 150,000 - - - - Replace Exercise Equipment at Victor Park OP93 30,000 30,000 (30,000) - - - - Replace Fence at 19301 - 19501 Prairie Avenue OP83 150,000 4,480 - - - - - Replacement of RightFax (OpenText) OP50 - - 15,000 - - - - Resurface Playing Courts OP93 - - 875,000 - - - - Sewer Lift Station Pump and Back-up Generator Replacements OP83 1,260,000 1,260,000 - - - - - Strategic Plan Survey & Community Profile/Environmental Scan OP49 200,000 200,000 - - - - - Street Name Sign Replacements OP83 172,278 15,662 - - - - - Upgrade Post Production and Asset Management Systems OP41 355,000 126,800 - - - - - Water System Master Plan OP83 500,000 500,000 - - - - - Total Expenditures 15,358,661$ 5,784,906$ 4,669,554$ 4,527,000$ 1,025,000$ 140,000$ -$ 216

Torrance City CouncilMay 6, 2025

Torrance City Council
May 6, 2025