PROPOSED FISCAL YEAR 2025-27
OPERATING BUDGET &
CAPITAL IMPROVEMENT PLAN
9A
BUDGET OUTLOOK
• Staff Outlook: Cautious
• Structurally balanced budget
• General Fund Economic Anomaly Reserve in compliance with Fiscal Policy • Balance increasing over 10-year projection
• Revenue Trends & Capital Asset Condition KPIs downgraded from green to yellow
• Conservative revenue projections
• Strategic investment in critical infrastructure
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Economic Sentiment
2 BUDGET OUTLOOK
• Federal Tariffs
• Stock Market fluctuations
• Private sectors layoffs
• Nearby cities experiencing budget deficits
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Economic Sentiment
3 To the extent an operating surplus exists, recommend prioritizing in the following order until nothing remains:
1. Ensure IT Replacement/Fleet Fund maintains amortized balance for future replacements; and
2. Ensure Self-Insurance Fund Balance improves and is not further degraded; and
3. Balance to Unassigned Fund Balance for Capital Improvement Plan FISCAL YEAR 2024-25 YEAR-END
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T General Fund Operating Fund Year-End Surplus Priorities 4 FISCAL YEAR 2024-25 YEAR-END
• Fiscal audit recommendation for City’s Economic Anomaly Reserve Fund:
• Represent under “Assigned” section of the General Fund Balance Sheet
• Explicit Council action required to utilize any portion • Recommend a deposit of $56,021,935 million into the City’s Economic Anomaly Reserve
• Set balance to $68,906,208
• Equivalent to 22% reserve ratio
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Fund Balance Updates for General Fund
5 FISCAL YEAR 2024-25 YEAR-END
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Fund Balance Updates for General Fund
6 Fund Balance
FY24-25 Prior
(Est)
FY24-25 New
(Est) Difference
Nonspendable 2,161,453 2,161,453 -
Restricted 43,442,715 43,442,715 -
Cable TV 5,057,641 5,057,641 -
Pension 38,385,074 38,385,074 -
Assigned 7,577,142 76,483,350 68,906,208
Technology Replacement 6,256,861 6,256,861 - Economic Anomaly Reserve - 68,906,208 68,906,208 Other Assigned 1,320,281 1,320,281 - Unassigned 81,598,731 12,692,523 (68,906,208) Total Fund Balance 134,780,041$ 134,780,041$ -$
NOVEMBER/
DECEMBER
JANUARY/
FEBRUARY
MARCH/
APRIL
MAY/
JUNE
• Develop and
distribute budget
calendar to City
departments
• Council provides
direction on budget
priorities
• Elicit stakeholder
feedback
• Meet with
departments to
discuss operating &
capital budget
needs
• Detailed review of
staffing levels
• Meet with
departments to
discuss revenue
projections
• Draft proposed
operating budget
and capital
improvement plan
• Conduct public
hearings
• Stakeholder
participation
• City Council formally
adopts budget
appropriations for
the coming fiscal
year via resolutions
BUDGET DEVELOPMENT PROCESS
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 7 BUDGET DEVELOPMENT PROCESS
Finance & Governmental Operations Committee
• First Quarter Budget Update – December 2024
• Mid-Year Budget Update – February 2025
Financial Framework
• Strategic Plan
• Budget Priorities
• Key Performance Indicators
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 8 KEY FINANCIAL PERFORMANCE INDICATORS
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Financial Key Performance Indicators FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Revenue Trends ● ● ● ● ●
Net True Operating Surplus/(Deficit) ● ● ● ● ●
General Fund Unrestricted Fund Balance ● ● ● ● ●
Liquidity ● ● ● ● ●
Pension Obligations ● ● ● ● ●
Debt Burden ● ● ● ● ●
Pension Funded Status ● ● ● ● ●
OPEB Funded Status ● ● ● ● ●
Self Insurance Funded Status ● ● ● ● ●
Capital Asset Condition ● ● ● ● ●
9 • Self-Insurance Fund
• Cash Balances by Fund
• Labor Trends
• Expiring Labor Agreements
• Aging Infrastructure and City Facilities/Parks
• Pension/OPEB Benefits Liability Management
CITYWIDE AREAS OF FOCUS
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 10 ECONOMIC INDICATORS
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Federal Funds Rate
Consumer Price Index
Real Gross Domestic Product
Labor Market Trends
11 BUDGET
FRAMEWORK
FY25-27
Operating Budget &
Capital Improvement
Plan
Budget Efficiencies
• Fleet Charges to Flat Rate
• Vacancy Rate Assumption
• Non-Litigated Claims to Self-Insurance
Fund
• Eliminate Vehicle Replacement Funds
• Re-align embedded positions
12 BUDGET
FRAMEWORK
● CIT Re-Brand & Re-Org
● Cable Division Re-Brand & Re-Org
● Civil Service under City Manager
● Reserve Fund presentation
13 FY25-27
Operating Budget &
Capital Improvement
Plan
BUDGET
FRAMEWORK
● Pro-actively address downgraded KPIs
● Strategic investment in priority areas
● Long-term structural balance
● Addresses areas of fiscal audit
14 FY25-27
Operating Budget &
Capital Improvement
Plan
BUDGET
FRAMEWORK
● Strong development continues
● Economic Development efforts
● Responsible Use of AI
● Community Engagement
● Homelessness
● Transit
● Police & DOJ Collaborative Reform
15 FY25-27
Operating Budget &
Capital Improvement
Plan
CITY’S FUND CLASSIFICATIONS
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T General Fund
Nonmajor Governmental Funds
Enterprise Funds
Internal Service Funds
Fiduciary Funds
16 General Fund Structure – All Funds
Operating & SST Funds
• Function as City’s checking accounts.
• Fund daily operations of the City.
• Net result of activity affects unassigned
fund balance
Restricted & Assigned Funds
• Function as City’s savings accounts, sets
funding aside for specified purpose
• Funding set aside in any given year for
future use to balance
Operating
Measure SST
Restricted
Assigned
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 17 ● GF-Operating Fund: +$17.6M
● GF-Measure SST: +$1.0M
● GF-Restricted: -$5.5M
● Airport Fund: +$2.7M
● Sanitation Fund: -$0.1M
● Sewer Fund: -$0.4M
● Transit Fund: +$3.3M
● Water Fund: +$7.0M
● Fleet Fund: +$1.9M
● Self-Insurance Fund: +$0.5M
CITYWIDE
REVENUES
F I N A N C E D E P A R T M E N T
FY25-27
Operating Budget &
Capital Improvement
Plan
18 CITYWIDE REVENUES BY FUND CLASSIFICATION
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 19 GENERAL FUND REVENUES
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Revenues
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
Taxes 203,810,470 209,741,110 722,151 0.4% Licenses, Fees and Permits 21,365,230 22,054,560 4,428,562 26.1% Fines, Forfeitures and Penalties 1,270,090 1,308,200 627,316 97.6% Use of Money and Property 9,014,403 10,199,331 1,860,015 26.0% Intergovernmental 435,630 442,070 (54,497) -11.1% Other Revenues 54,310 54,310 (265,294) -83.0% Charges for Services 25,928,210 26,779,480 297,744 1.2% Operating Transfers In 43,227,317 45,807,527 10,011,008 30.1% Other Financing Sources - - - 0.0% Total Revenues 305,105,660$ 316,386,588$ 17,627,005$ 6.1% 20 GENERAL FUND TAX REVENUES
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Revenues
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
Increase/
(Decrease)
FY25-26
Percent
Change
Sales and Use Tax 61,701,050 63,463,250 (824,907) -1.3% Property Tax 72,011,450 73,949,510 4,160,961 6.1% Utility Users Tax 43,313,300 44,808,730 (2,689,566) -5.8% Business License Tax 11,644,650 11,993,990 330,356 2.9% Occupancy Tax 13,305,020 13,635,730 (510,028) -3.7% Construction Tax 1,830,000 1,884,900 257,335 16.4% Oil Severance Tax 5,000 5,000 (2,000) -28.6% Total Revenues 203,810,470$ 209,741,110$ 722,151$ 0.4% 21 ● GF-Operating Fund: +$25.1M
● GF-Measure SST: -$1.3M
● GF-Restricted: +$7.2M
● Airport Fund: +$5.9M
● Sanitation Fund: -$0.8M
● Sewer Fund: +$1.3M
● Transit Fund: +$4.8M
● Water Fund: +$8.1M
● Fleet Fund: +$4.3M
● Self Insurance Fund: +$0.8M
CITYWIDE
EXPENDITURES
F I N A N C E D E P A R T M E N T
FY25-27
Operating Budget &
Capital Improvement
Plan
22 CITYWIDE EXPENDITURES BY FUND CLASSIFICATION
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 23 CITYWIDE PERSONNEL SUMMARY BY FUND
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Fund Type
FY22-23
Actual
FY23-24
Actual
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
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 - 24 CITYWIDE PERSONNEL SUMMARY BY DEPARTMENT
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Department
FY24-25
Amended
Budget
FY25-26
Proposed
Budget
FY26-27
Proposed
Budget
FY25-26
FTE
Increase/
(Decrease)
FY26-27
FTE
Increase/
(Decrease)
FY25-26
Expenditure/
(Savings)
FY26-27
Expenditure/
(Savings)
City Attorney 14.00 14.00 14.00 - - - - City Clerk 9.00 9.00 9.00 - - - - City Council 7.00 7.00 7.00 - - - - City Manager 47.30 45.25 45.25 (2.05) - (83,700) - City Treasurer 2.00 2.00 2.00 - - - - Community Development 74.00 77.00 77.00 3.00 - 301,225 - Community Services 205.15 205.15 205.15 - - - - Finance 38.25 38.25 38.25 - - 10,413 - Fire 203.00 203.00 203.00 - - - - 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 1,533.25 1,547.20 1,547.20 13.95 - 1,644,173$ - 25 CITY MANAGER – COMMUNICATIONS DIVISION RE-ORG
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Additions
• +1.0 FTE Management Associate
Conversions
• -1.0 FTE Supervising Producer/Writer to +1.0 FTE Supervising Content Creator • -1.0 FTE Production Writer, Asst to +2.0 FTE Content Creator • -1.00 FTE Cable TV Operations Asst to +1.0 FTE Multimedia Production Coordinator • -4.50 FTE Cable TV Production Assistants to +4.50 FTE Production Assistant Staffing Level Changes: Net -2.05 FTE
26 CITY MANAGER – COMMUNICATIONS DIVISION RE-ORG
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Eliminations
• -0.25 FTE Administrative Assistant
• -1.80 FTE Cable TV Announcer
• -1.0 FTE Cable TV Production Supervisor
• -1.0 FTE Community Television Supervisor
27 INFORMATION TECHNOLOGY RE-ORGANIZATION
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Additions
• +1.0 FTE Information Technology Manager
• +1.0 FTE Project Manager
Conversions
• -1.0 FTE Communication Supv/Wireless and -1.0 FTE Communication Supv/Telecomm to +1.0 FTE Communications Supervisor
• -1.0 FTE Storekeeper to +1.0 FTE Info Tech Specialist • -2.0 FTE Telecommunications Tech to +2.0 FTE Wireless Tech Staffing Level Changes: Net +5.0 FTE
28 INFORMATION TECHNOLOGY RE-ORGANIZATION
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T Eliminations
• -1.0 FTE Senior Admin Assistant
Transfers from Police Department
• +2.0 FTE Info Tech Specialist
• +2.0 FTE Info Tech Analyst
• +1.0 FTE Systems Analyst
29 PROPOSED CITYWIDE NON-WAGE SUMMARY
Department
FY25-26 Non-Wage
Program-level
Budget 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$
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 30 GENERAL FUND-OPERATING FUND PROGRAM SUBSIDIES
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T 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$ 31 CITY COUNCIL TRAVEL BUDGET
Area Amount Cost Basis
State Legislative Committee 7,500 3 Councilmembers, 1 trip per year @ $2.5k each trip Federal Legislative Committee 7,500 3 Councilmembers, 1 trip per year @ $2.5k each trip General Economic Development 17,500 7 Councilmembers, 1 trips per year @ $2.5k each trip Mayor Travel 16,000 4 trips per year @ $4k each trip Council Member Travel - District 1 12,000 3 trips per year @ $4k each trip Council Member Travel - District 2 12,000 3 trips per year @ $4k each trip Council Member Travel - District 3 12,000 3 trips per year @ $4k each trip Council Member Travel - District 4 12,000 3 trips per year @ $4k each trip Council Member Travel - District 5 12,000 3 trips per year @ $4k each trip Council Member Travel - District 6 12,000 3 trips per year @ $4k each trip Local Meetings & Meals 21,000 7 Councilmembers, $250 per month Friendship City Travel 70,000 7 Councilmembers, 2 trips per year @ $5k each trip Grand Total 211,500$
32 F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T GENERAL FUND-OPERATING FUND 10-YEAR FORECAST
General Fund-Op Fund (thousands) FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 Revenues 305,106 316,387 328,673 340,407 346,738 354,972 363,281 371,797 380,381 391,786 Expenses 313,210 316,387 328,673 340,407 346,738 354,972 363,281 371,797 380,381 391,786 Revenues Less Expenditures (8,104) 0 (0) (0) (0) (0) (0) (0) (0) (0) Use of Unassigned Fund Balance 8,104 (0) 0 0 0 0 0 0 0 0 Net Surplus/(Deficit) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Funding Details & Assumptions
Capital Contribution 13,104 4,000 2,000 2,000 1,000 2,000 2,000 2,000 2,000 2,000 CEPPT Contribution & Investment Returns 4,024 3,858 3,581 3,229 3,017 2,923 2,620 2,353 2,155 4,834 Use of CEPPT Balance (7,286) (8,730) (10,803) (12,091) (8,981) (6,429) (4,510) (2,418) - - Projected CEPPT Balance 35,385 30,855 24,090 15,767 10,207 6,990 5,303 5,340 7,477 12,282 Use of Reserves (5,000) (5,000) (5,000) (5,000) (4,000) (4,000) (3,000) (2,000) (1,000) - Projected Reserve Balance (Assigned) 68,906 68,906 68,906 68,906 69,906 70,906 72,906 75,906 79,906 84,906 Projected Reserve as % of Budget 22.0% 21.8% 21.0% 20.2% 20.2% 20.0% 20.1% 20.4% 21.0% 21.7% 33 GENERAL FUND-MEASURE SST 10-YEAR FORECAST
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T General Fund- Measure SST Fund (thousands) FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 Revenues 26,184 26,948 27,757 28,591 29,449 30,333 31,243 32,181 33,147 34,142 Expenses 26,184 26,948 27,757 28,591 29,449 30,333 31,243 32,181 33,147 34,142 Revenues Less Expenditures -$ -$ 0$ 0$ 0$ (0)$ (0)$ (0)$ (0)$ (0)$ Funding Details & Assumptions
Quality of Life FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 Restore/Maintain Public Safety 13,181 13,867 14,540 15,183 15,505 15,825 16,221 16,621 17,028 17,441 Homelessness Response Efforts 1,004 1,017 1,055 1,092 1,128 1,163 1,202 1,243 1,284 1,324 Fiscal Sustainability FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 Reserve Contribution 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Deferred Maintenance & Community Services/ProgramsFY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 Capital Contribution 5,979 6,034 6,097 6,215 6,681 7,175 7,615 8,074 8,553 9,055 Emergency Responsiveness FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 Cyber Security Upgrades 1,020 1,031 1,066 1,101 1,135 1,169 1,206 1,244 1,282 1,322 34 F I N A N C E D E P A R T M E N T
Highlights
• Over $1B in assets; over 50% depreciated
• Capital Asset Condition indicator
downgraded
• Construction costs in last 4 years
escalated 40+%
• Includes 10% contingency for
Facilities/Parks related efforts
CAPITAL
IMPROVEMENT PLAN
Proposed FY2025-27
Capital Budget
35 F I N A N C E D E P A R T M E N T
• Seismic concerns with age of
buildings
• Building Index Study identified
$205M as minimum investment in
next 10 years ($20.5M annually)
• Can only afford ~$7.5M annually
• Grants/Debt critical areas of
exploration
• Parks Master Plan to expand upon
the identified need
CAPITAL
IMPROVEMENT PLAN
Proposed FY2025-27
Capital Budget
36 F I N A N C E D E P A R T M E N T
Identified Gaps
• Analyzing Fire headquarters/stations
citywide, evaluating alternative sites for
consideration in the City (southeast)
• Impacts of Civic Center Master Plan
financing strategy
• Continued need to defer projects
CAPITAL
IMPROVEMENT PLAN
Proposed FY2025-27
Capital Budget
37 F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N
CAPITAL IMPROVEMENT PLAN SUMMARY
• Roofs: Historical Museum, East Annex,
Nakano, HR, El Nido, FS #1, West Annex
• Discovery Park Renovation
• Russ Nolte Rehabilitation
• Veterans Flagpole
• Park Lighting: Descanso, Columbia,
Wilson
Facilities/Parks Projection Completions & Updates
• City Hall - Building & Safety
• Delthorne Restroom Roof
• Paradise Park
• Columbia Park
• Parking Structure at RTC
40+ Projects in Progress40+ Projects Completed
38 CAPITAL IMPROVEMENT PLAN SUMMARY
Discovery Park Renovation
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 39 CAPITAL IMPROVEMENT PLAN SUMMARY
Discovery Park Renovation
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 40 CAPITAL IMPROVEMENT PLAN SUMMARY
Discovery Park Renovation
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 41 CAPITAL IMPROVEMENT PLAN SUMMARY
Veterans Flagpole
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 42 CAPITAL IMPROVEMENT PLAN SUMMARY
Historical Museum Roof
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 43 CAPITAL IMPROVEMENT PLAN SUMMARY
El Nido Roof Replacement
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 44 CAPITAL IMPROVEMENT PLAN SUMMARY
Gateway Signage
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 45 CAPITAL IMPROVEMENT PLAN SUMMARY
7 48
56 4
A: Good B: Fair C: Poor D: Critical
Facilities Asset Condition
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 46 CAPITAL IMPROVEMENT PLAN SUMMARY
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N Building Condition Facility Category Count
Average
Year Built
Minimum
Maintenance
Replacement
Cost
Critical Parks 4 1956 737,157 1,254,000
Critical Total 4 1956 737,157 1,254,000
Poor Libraries 3 1961 4,373,298 22,309,000
Parks 19 1965 7,688,282 36,783,000
Public Safety Facilities 7 1969 16,391,045 89,407,000 Airport 4 1977 8,742,370 48,338,000
Civic Center 11 1969 44,389,895 255,544,000
Other 3 2001 2,844,920 20,534,000
Parks Rec Building 7 1982 3,144,564 18,767,000
Senior Center 2 1935 2,352,384 10,902,000
Poor Total 56 1969 89,926,758 502,584,000
47 CAPITAL IMPROVEMENT PLAN SUMMARY
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N Building Condition Facility Category Count
Average
Year Built
Minimum
Maintenance
Replacement
Cost
Fair City Yard 4 1985 18,228,681 223,757,000
Libraries 3 1960 10,883,108 102,805,000
Parks 19 1965 4,228,567 31,651,000
Public Safety Facilities 1 1982 17,193,273 136,094,000 Airport 9 1955 21,351,200 188,261,000
Civic Center 2 1978 5,921,950 57,629,000
Other 3 2007 3,854,809 43,183,000
Parks Rec Building 5 1968 2,333,441 19,387,000
Senior Center 2 1983 2,446,456 40,589,000
Fair Total 48 1974 86,441,485 843,356,000
48 CAPITAL IMPROVEMENT PLAN SUMMARY
• 100+ assets in this area
• Another 47 playgrounds at 29 of our 33 parks
• 3 of these playgrounds are fully rubberized
• Average age of facilities
• Critical: 1956
• Poor: 1969
• Fair: 1974
Parks & Facilities
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 49 CAPITAL IMPROVEMENT PLAN SUMMARY
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 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$ 50 CAPITAL IMPROVEMENT PLAN – PARKS
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 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 375,000 375,000 570,000 - - - - 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$ 51 CAPITAL IMPROVEMENT PLAN – FACILITIES
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 3 0 C A P I T A L I M P R O V E M E N T P L A N 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$ 52 BUDGET PRIORITIES
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T
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. 53 BUDGET PRIORITIES
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T
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.
54 NEXT STEPS/ACTIONS
F I N A N C E D E P A R T M E N T | P R O P O S E D F I S C A L Y E A R 2 0 2 5 - 2 7 O P E R A T I N G B U D G E T May 6
Provide feedback on
Proposed Budget
Provide feedback on
Proposed Budget
1. Approve priority framework of year-end surplus
2. Approve Reserve contribution
3. Approve Appropriations Resolutions
June 3
May 20
55 56