Agenda Item 5A — Finance and Governmental Operations Council Committee, December 11, 2025

5A
Date: December 11, 2025
To: Chair and Members of the Finance and Governmental Operations Committee From: Ian Dailey, Finance Director | [email protected] Subject: Finance – Accept and File Fiscal Year 2025-26 First Quarter Budget Review Report and Approve Proposed Fiscal Year 2025-26 First Quarter Program Modifications.

Expenditure: $3,672,663 (General Fund and Non-General Fund).

RECOMMENDATION
Recommendation of the Finance Director that the Finance and Government Operations Committee:

1. Accept and file the Fiscal Year 2025-26 First Quarter Budget Review Report; and

2. Approve the proposed program modifications in the fiscal year 2025-26 operating expenditure budget in the amount of $3,672,663 in the City Attorney’s Office, City Manager’s Office, Community Development Department, Community Services Department, Finance Department, General Services Department, Non-Departmental, Police Department, Public Works Department, and Transit Department; and

3. Approve the proposed increase to the General Fund’s fiscal year 2025-26 operating revenue budget in the amount of $877,028; and

4. Approve the proposed increase to the General Fund’s fiscal year 2025-26 operating expenditure budget in the amount of $567,602; and

5. Approve the proposed decrease to the Fleet Services Fund’s fiscal year 2025-26 operating revenue and expenditure budget in the amount of $(194,654); and

6. Approve the proposed increase to the Airport Fund’s fiscal year 2025-26 operating revenue budget in the amount of $876,600; and

7. Approve the proposed increase to the Airport Fund’s fiscal year 2025-26 operating expenditure budget in the amount of $1,791,600; and

8. Appropriate funds to a newly created project in the amount of $100,000; and

9. Recommend to City Council to accept and file the Fiscal Year 2025-26 First Quarter Budget Review Report; and

10. Recommend to City Council the approval of the proposed fiscal year 2025-26 first quarter program modifications and budget adjustments.
1 Finance and Governmental Operations Council Committee December 11, 2025

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2 FUNDING
Funding is available in the following fiscal year 2025-26 operating budgets and is anticipated to be available in subsequent fiscal years.

Funding Source Amount
City Attorney’s Office – General Fund $ 85,566
City Manager’s Office – General Fund (17,224)
Community Development Department – General Fund 14,523
Community Services Department – General Fund 175,655
Finance Department – General Fund 215
General Services Department – General Fund 123,782
General Services Department – Fleet Services Fund (194,654) General Services Department – Airport Fund 1,791,600
Non-Departmental – General Fund (121,919)
Police Department – General Fund 1,475,189
Public Works Department – General Fund 276,098
Transit – Transit Fund (36,168)
Capital Improvement Plan – General Fund 100,000
Total $ 3,672,663

DISCUSSION
Each year, the Finance Department provides two budget updates to the Finance and Governmental Operations Committee. The first report covers financial analysis through September 30, while the second covers through December 31. These reports assess the City’s major budgets, year-to-date spending, and projections for the remainder of the fiscal year.

Staff have completed the first quarter analysis through September 30, 2025, and have prepared the Fiscal Year 2025-26 First Quarter Budget Review Report (Attachment 1) for the Committee.

The full report is available on the City’s Finance website at the below link:
https://www.torranceca.gov/government/finance/budget-documents The Fiscal Year 2025-26 First Quarter Budget Review Report includes proposed program modifications which are summarized below for the consideration of the Finance and Governmental Operations Committee.

City Attorney’s Office
Legal Services Support Staffing Enhancement
Add 1.0 FTE Legal Assistant I
Expenditure: $85,566 (General Fund)
The City Attorney’s Office is requesting the addition of a 1.0 FTE Legal Assistant I to provide administrative support in response to increased legal service demands. Rising workload levels 2 Finance and Governmental Operations Council Committee December 11, 2025

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8 1
2 have created a need for additional assistance to ensure timely and efficient processing of legal matters. This position will support all divisions by improving workflow efficiency, meeting administrative deadlines, and assisting with contract routing to facilitate quicker turnaround and more responsive service delivery.

City Manager’s Office
Communications Division Leadership Realignment
Delete 1.0 FTE Deputy City Manager and Add 1.0 FTE Communications Manager Expenditure: $(39,632) (General Fund)
The City Manager’s Office is requesting the conversion of 1.0 FTE Deputy City Manager to 1.0 FTE Communications Manager to restore the Communications Manager position as aligned with the 21st Century PIO (Public Information Officer) model. This role will lead the Communications Division and develop Citywide projects related to strategic messaging, enhancing transparency, and promoting civic initiatives. As well, it will focus supporting the City’s priority towards effective public communication and strengthening community relationships.

Production Staffing Classification Adjustment
Delete 1.0 FTE Production Assistant I and Add 1.0 FTE Production Assistant II Expenditure: $42,063 (General Fund)
The City Manager’s Office Communications Division is requesting the conversion of 1.0 FTE Production Assistant I to 1.0 FTE Production Assistant II. This conversion includes the elimination of the first three steps of the Production Assistant I classification to improve recruitment efforts and creates a new full-time Production Assistant II position, providing a clearer promotional pathway and strengthening retention within the City’s workforce.

Civil Service Division Summer Intern Program Enhancement Add 1.0 FTE Intern I
Expenditure: $36,753 (General Fund)
The City Manager’s Office Civil Service Division is requesting the addition of 1.0 FTE Intern I to establish a pooled FTE for the Summer Intern program, which makes the program paid opportunities. The Summer Intern program is a proven talent pipeline that provides students and recent graduates with hands-on experience, skill development, career exploration, and professional connections. The program has led to permanent hires across departments and feeds in the City’s Management Aid Program, supporting long-term workforce goals.

Assistant to the City Manager Benefit Adjustment
Expenditure: $8,592 (General Fund)
The City Manager’s Office Communications Division is requesting to update the Car Allowance Category for the Assistant to the City Manager position from Category 3 to Category 1, consistent with the Communications Manager position recommended to be added to the budget. 3 Finance and Governmental Operations Council Committee December 11, 2025

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2 Decrease the General Fund Expenditure Budget by $(65,000) The City Manager’s Office is requesting a decrease in the Civil Service Division’s General Fund operating budget of $65,000, related to discipline matters.

Community Development Department
Planning Division Staffing Realignment
Delete 1.0 FTE Planning Associate and Add 1.0 FTE Senior Planner Expenditure: $14,523 (General Fund)
The Community Development Department is requesting the conversion of 1.0 FTE Planning Associate to 1.0 FTE Senior Planner. This conversion will align the job title with the responsibilities of the position as well as improve recruitment by attracting more experienced candidates who are able to take on complex planning projects and provide expert support to the Department. The proposed position would support ongoing projects in Development Review and Long-Range Planning program.

Community Services Department
Recreation and Cultural Services Program Staffing Enhancements Add 0.98 FTE Program Leader, Add 1.45 FTE Program Specialist, and Add 0.5 FTE Senior Program Specialist
Expenditure: $133,472 (General Fund)
The Community Services Department is requesting the addition of 0.98 FTE Program Leader,

1.45 FTE Program Specialist, and 0.5 FTE Senior Program Specialist within the Administration, Recreation, and Cultural Services Division. The proposed increase in Program Leader staffing will align part-time support with the current operational needs of the Torrance Certified Farmers’ Market, ensure the continuation of the People Actively Learning and Sharing (PALS) pickleball clinics—a specialized recreation program—for an additional year, and support expanded early childhood education class offerings in response to increased community demand.

The proposed increase in Program Specialist staffing will reinstate the chef position at the Bartlett Senior Center for onsite preparation of fresh, hot meals for adults aged 50 and older, and provide staffing support for expanded Torrance Summer Nights programming, including concerts in the park and other special events.

Finally, the additional 0.5 FTE Senior Program Specialist will provide dedicated staffing for the community garden plots at Columbia Park and Lago Seco Park and manage the special event permitting process. This position will also serve as the primary liaison for related activities and responsibilities previously overseen by the City Manager’s Office. 4 Finance and Governmental Operations Council Committee December 11, 2025

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2 Civic Chorale Staffing Adjustment
Add 0.10 FTE Instructor II
Expenditure: $7,113 (General Fund)
The Community Services Department is requesting the addition of 0.10 FTE Instructor II to align part-time staffing with the current program needs of the Torrance Civic Chorale.

Library Leadership Staffing Realignment
Delete 1.0 FTE Program Coordinator, Delete 1.0 FTE Senior Librarian, and Add 1.0 FTE Assistant City Librarian
Expenditure: $1,070 (General Fund)
The Community Services Department is requesting the deletion of 1.0 FTE Program Coordinator and 1.0 FTE Senior Librarian, and the addition of 1.0 FTE Assistant City Librarian. In February 2024, an Assistant City Librarian position became vacant and was subsequently converted to a Senior Librarian position as part of the FY24-25 First Quarter Program Modifications. Since then, the Library has operated with only one Assistant City Librarian, who has absorbed responsibility for supervising Senior Librarians and overseeing daily operations related to facilities and technology. During this time, the City Librarian has taken on additional duties involving programming, outreach, and administrative functions, while the remaining Assistant City Librarian has managed operations at both the Katy Geissert and Henderson Libraries.

These shifts in responsibilities have coincided with increased community demand for programming, greater reliance on technology, and rising contractual and operational complexity, further stretching the leadership team. Reinstating a second Assistant City Librarian—focused on technical processing, circulation, technology, and operations—would restore balance to the management structure and strengthen the Library’s leadership capacity. This adjustment would also improve recruitment prospects for key leadership roles and enhance overall service delivery to the community.

Contract Security Guard at Main Library
Increase General Fund Expenditure Budget by $34,000
The Community Services Department is requesting to increase the operating expenditure budget by $34,000 to fund an additional security guard to provide enhanced patrol coverage at Katy Geissert Civic Center Library with rotation to Cultural Arts Center. 5 Finance and Governmental Operations Council Committee December 11, 2025

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2 Finance Department
Budget Division Staffing Realignment
Delete 0.5 FTE Deputy Finance Director and Add 1.0 FTE Administrative Analyst Expenditure: $215 (General Fund)
The Finance Department is requesting to delete 0.5 FTE Deputy Finance Director and add 1.0 FTE Administrative Analyst to support the Budget Division. Following the financial impacts of the COVID-19 pandemic, the City implemented a zero-based budgeting strategy in 2021, which has increased the level of analytical support required for citywide budgeting and financial reporting.

The additional Administrative Analyst position will help manage the expanded workload associated with the division’s responsibility, enhance the accuracy and consistency of departmental budget submissions, and improve overall efficiency within the Budget Division.

Comprehensive User Fee & Development Impact Fee Study
Increase Capital Expenditure Budget by $100,000
The Finance Department is requesting to increase the capital expenditure budget by $100,000 to fund a comprehensive User Fee Study and Development Impact Fee Study. The City strives to conduct a comprehensive user fee study every five years ensuring fees charged keep pace with the cost of providing the services. This fee study will also examine market rate fees to re-establish ranges available to departments to charge. For the DIF Study, state law requires that these studies be updated at least every eight years to ensure that development impact fees remain aligned with current infrastructure needs and the actual cost of providing public facilities. The study will evaluate the City’s existing impact fees, update cost assumptions, and ensure that fees collected from new developments appropriately cover the proportional cost of the infrastructure improvements needed to serve that development. This update supports the City’s priority of maintaining fiscally responsible, legally compliant cost-recovery mechanisms without increasing taxes.

General Services Department
Fleet Services Staffing Realignment
Delete 1.0 FTE Senior Business Manager, Delete 1.0 FTE Reprographics Specialist, Delete

0.5 FTE Driver/Clerk, Delivery, and Add 1.0 FTE Fleet Services Manager Expenditure: $(70,872) (General Fund and Fleet Fund)
The General Services Department is requesting the deletion of 1.0 FTE Senior Business Manager, 1.0 FTE Reprographics Specialist, and 0.5 FTE Driver/Clerk, Delivery and the addition of 1.0 FTE Fleet Services Manager. The new Fleet Services Manager position will support the Fleet Division by overseeing vehicle acquisition/disposal, repair and maintenance operations, and management of the City Warehouse. The existing Fleet Services Manager position will be reassigned to provide Department-wide administration support, including oversight of the electric vehicle program and graffiti removal program, and will operate under the working title of Project and Resource Manager.
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2 The deletion of the Senior Business Manager and Delivery/Driver Clerk position will result in decreased contributions from the General Fund to Fleet Services Fund, which will effectively offset the net effects of the additional Fleet Services Manager and elimination of the Reprographics Specialist. The requested decrease in Fleet funded positions will decrease the overall Fleet operating cost, which in turn reduces the contribution needed from General Fund by approximately $121,919.

Fleet Services Staffing Realignment and Impact on Fleet Fund Decrease the Fleet Fund Revenue and Expenditure Budget by $(194,654) The General Services department is requesting to decrease both Fleet Fund Revenue and Expenditure Budget by $194,654, as the requested deletion of 1.0 FTE Senior Business Manager and 0.5 FTE Delivery/Driver Clerk discussed above will decrease the total Fleet operating cost in Fleet Fund. This change will in turn decrease required contributions from other departments and funds to support the Fleet Fund’s operating cost; thus, it will decrease the Fleet Fund Revenue with no net impact on the Fleet Fund.

Rental Revenue Adjustment
Increase the Airport Fund Revenue Budget by $876,600 and Increase the Airport Fund Expenditure Budget by $1,791,600
The General Services Department is requesting to increase the Airport Fund’s Revenue Budget by $876,600 and increase the Airport Fund’s Expenditure Budget by $1,791,600. As a result of a recent litigation settlement, the Airport Fund received additional rental revenue totaling $915,000 in FY24-25 and will receive an additional $876,600 in FY25-26, for a total of $1,791,600 to be transferred from the Airport Fund to the General Fund during FY25-26.

Police Department
Police Department Staffing Enhancements for DOJ Collaborative Reform Add 2.0 FTE Digital Evidence Technician
Expenditure: $289,200 (General Fund)
The Police Department is requesting the addition of 2.0 FTE Digital Evidence Technicians to support ongoing department restructuring related to the California Department of Justice’s Reform Agreement. These non-sworn positions will be responsible for collecting, preserving, and analyzing data from digital devices – including computers, smartphones, body-worn cameras, and in-car systems – to support investigations and ensure evidence is processed in accordance with established standards.
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2 Add 1.0 FTE Public Information Officer
Expenditure: $247,785 (General Fund)
The Police Department is requesting the addition of 1.0 FTE Public Information Officer to support organizational restructuring required under the California Department of Justice’s Reform Agreement. This non-sworn position will oversee the Police Department’s communication strategy, including media relations, social media, and public outreach.

Add 2.0 FTE Performance Auditor
Expenditure: $414,000 (General Fund)
The Police Department is requesting the addition of 2.0 FTE Performance Auditors to support restructuring efforts related to the California Department of Justice’s Reform Agreement. These non-sworn positions will evaluate the efficiency and effectiveness of Police Department operations, programs and processes through audits, data analysis, and police review. Their work will help ensure compliance, transparency, and continuous improvement in departmental practices.

Delete 1.0 FTE Staff Assistant
Expenditure: $(108,593) (General Fund)
The Police Department is requesting the deletion of 1.0 FTE Staff Assistant, that is currently vacant. The savings from this deletion will partially offset the cost of implementing the new classifications mentioned above to support DOJ Reform efforts.

Parking Enforcement
Increase General Fund Revenue Budget by $845,000 and General Fund Expenditure Budget by $632,797
The Police Department is requesting to increase the revenue budget by $845,000 and the expenditure budget by $632,797 to support ongoing services related to Parking Enforcement. On December 17, 2024, Council awarded a contract services agreement to ACE Parking Management for supplemental parking enforcement services. As a result, the Department has seen an increase in revenues and processing fees from Los Angeles County. To align the budget with projected revenues through June 30, 2026, the Police Department is requesting that Council increase the revenue budget accordingly. The requested increase in the expenditure budget will be used to assist the department with ongoing contract costs and Los Angeles County processing expenses.
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2 Public Works Department
Add 1.0 FTE Sanitation Equipment Operator (Street Sweeping) Expenditure: $48,527 (General Fund)
The Sanitation Equipment Operator will support the Street Sweeping Division in expanding its sweeping schedule, enabling more consistent and timely service in high-priority areas such as arterial streets and medians. The additional staffing will also reduce overtime costs associated with alternate day sweeping, which is currently maintained through sustained overtime and an increased workload. The new operator will assume responsibility for an additional sweeping route, improving service quality across key areas of the City. This enhancement will help lower overtime expenses, promote a cleaner and safer environment, and maintain the City’s high standards for public cleanliness and operational efficiency. The expenditure is partially offset by the projected savings in overtime cost.

Add 1.0 FTE Maintenance Worker (Illegal Dumping)
Expenditure: $76,998 (General Fund)
The Maintenance Worker will support a new program in the Sanitation Division focused on combating illegal dumping throughout the City. This position will respond to reported illegal dumping incidents and proactively identify and collect unreported discarded items. The Maintenance Worker will also update and maintain the illegal dumping hotspot map to ensure thorough coverage, timely cleanup, and improved monitoring of problem areas.

Add 1.0 FTE Maintenance Worker (Weed Abatement)
Expenditure: $76,998 (General Fund)
The Maintenance Worker will support enhanced weed abatement in medians and City-owned parkways. This position will identify and respond to “hotspot” areas where weeds grow more quickly than can be addressed through the regular maintenance schedule, ensuring more frequent upkeep and improving the appearance of public spaces. The Maintenance Worker will also notify residents and business owners of overgrown vegetation along the frontage of their property and advise them of the requirement to take corrective action within 10 business days to comply with the Torrance Municipal Code. Cases that remain unresolved will be referred to Community Development’s Code Enforcement for further action.

Delete 1.0 FTE Equipment Operator and Add 1.0 FTE Maintenance Worker (Street Maintenance)
Expenditure: $(14,149) (General Fund)
The conversion of 1.0 FTE Equipment Operator to 1.0 FTE Maintenance Worker within the Street Maintenance – Asphalt section will provide balanced staffing across all three asphalt crews, each consisting of one (1) Lead Maintenance Worker, two (2) Equipment Operators, and one (1) 9 Finance and Governmental Operations Council Committee December 11, 2025

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2 Maintenance Worker. Aligning the staffing structure in this way will enhance crew efficiency, improve supervision, and optimize overall productivity in street maintenance operations.

Vehicle Maintenance Cost for Weed Abatement and Illegal Dumping Management Programs
Increase General Fund Expenditure Budget by $87,724
The Public Works Department is requesting to increase the General Fund expenditure budget by $87,724 to purchase a Ford Lightning and a Rear-Load Trash Truck. The Ford Lightning vehicle’s purchase cost will be $75,000 with an eight-year replacement schedule, and recurring annual cost for replacement contribution is $13,851. The Ford Lightning will be added to the City’s Vehicle Fleet and would support the newly requested Maintenance Worker position related to weed abatement. As well, Rear-Load Trash Truck purchase cost will be $400,000 with an eight-year replacement schedule, and recurring annual cost for replacement contribution is $73,873. The Rear-Load Trash Truck will be added to the City’s Vehicle Fleet and would support the newly requested Maintenance Worker position related to illegal dumping management.

Street Sweeping Cost Reimbursement from Sanitation Fund to General Fund Increase General Fund Revenue Budget by $32,028
The Public Works department is requesting to increase General Fund Revenue budget by $32,208, as the requested addition of 1.0 FTE Sanitation Equipment Operator discussed above will increase the total street sweeping program cost in General Fund. Since Sanitation Fund covers a portion of this cost, it will increase estimated reimbursement from Sanitation Fund to General Fund.

Transit Department
Fleet Services Staffing Realignment
Delete 0.5 FTE Driver/Clerk, Delivery
Expenditure: $(36,168) (Transit Fund)
The requested deletion of 0.5 FTE Driver/Clerk, Delivery position is a result of the General Services Department’s Fleet Services staff realignment discussed in the Fleet Services Fund section, as the position is equally shared by the General Services and Transit departments.

Based on the information in this report, the Finance Director recommends that the Finance and Governmental Operations Committee accept and file this report, approve the proposed program modifications, and recommend the same actions to the City Council at a subsequent City Council meeting.

ATTACHMENTS

1. Fiscal Year 2025-26 First Quarter Budget Review Report

2. FY25-26 First Quarter Program Modifications Summary Table 10 CITY OF TORRANCE · DEPARTMENT OF FINANCE

FIRST QUARTER

BUDGET REVIEW
REPORT
FY 2025-26
ATTACHMENT 1
11 Table of Contents
Executive Summary ..................................................................................................................................... 1 Introduction ............................................................................................................................................................................................ 1 Citywide Budget Summary ..................................................................................................................................................................... 4 Program Modifications ............................................................................................................................................................................ 9 Capital Improvement Plan .................................................................................................................................................................... 11 Areas of Focus ........................................................................................................................................................................................ 12 Strategic Plan Performance Indicators by Department ....................................................................................................................... 15 Revenues ................................................................................................................................................... 20 Citywide Revenues by Fund .................................................................................................................................................................. 20 Citywide Revenues by Classification..................................................................................................................................................... 21 General Fund-Operating Fund Revenue by Classification ................................................................................................................... 21 General Fund-Measure SST Fund Revenue by Classification ............................................................................................................... 27 Expenditures .............................................................................................................................................. 28 Citywide Expenditures by Fund ............................................................................................................................................................ 28 Citywide Expenditures by Classification ............................................................................................................................................... 30 Citywide Expenditures by Department ................................................................................................................................................. 31 General Fund-Operating Fund Expenditures by Department .............................................................................................................. 32 General Fund-Operating Fund Expenditures by Classification ............................................................................................................ 33 General Fund-Measure SST Fund Expenditures by Classification ....................................................................................................... 34 Departments .............................................................................................................................................. 35 City Attorney .......................................................................................................................................................................................... 35 City Clerk................................................................................................................................................................................................ 37 City Council ............................................................................................................................................................................................ 39 City Manager .......................................................................................................................................................................................... 41 City Treasurer ........................................................................................................................................................................................ 46 Community Development ..................................................................................................................................................................... 48 Community Services ............................................................................................................................................................................. 56 Finance .................................................................................................................................................................................................. 62 Fire ......................................................................................................................................................................................................... 67 General Services .................................................................................................................................................................................... 70 Human Resources ................................................................................................................................................................................. 77 Information Technology ....................................................................................................................................................................... 79 Police ..................................................................................................................................................................................................... 82 Public Works .......................................................................................................................................................................................... 87 Transit .................................................................................................................................................................................................... 96 Non-Departmental .............................................................................................................................................................................. 100 Capital Improvement Plan ......................................................................................................................... 105 CIP Summary by Project Type ............................................................................................................................................................. 105 Parks .................................................................................................................................................................................................... 107 Facilities ............................................................................................................................................................................................... 112 IT Infrastructure .................................................................................................................................................................................. 118 Public Right of Way (Streets) ............................................................................................................................................................... 120 Sewer/Water Utilities .......................................................................................................................................................................... 127 Storm Drains/Basins............................................................................................................................................................................ 131 Operating Projects .............................................................................................................................................................................. 133 Other Projects ...................................................................................................................................................................................... 139 s
12 EXECUTIVE

SUMMARY
First Quarter Budget Review Report
13 1

Executive Summary
Introduction
The Fiscal Year (FY) 25-26 First Quarter Budget Review provides City Council and the community with a clear overview of the City’s financial performance

for
the period ending September 30, 2025. This
report highlights the City’s fiscal outlook, reserve status, year -end projections, and progress on major Capital Improvement Plan (CIP) initiatives that directly benefit Torrance residents.

Fiscal Outlook

& Revenue Generation

The City continues to maintain a stable financial position. In October 2025, Torrance’s FY25 -26 Operating Budget and Capital Improvement Plan received the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for the fourth

consecutive year —
demonstrating the City’s commitment to transparency, accountability, and long -term financial planning. A separate application is pending for the California Society of Municipal Finance Officers Operating Budget Excellence Award.

General Fund revenues and expenditures remain substantially aligned with the Adopted Budget. The City Council approved a

planned use of $11.1 million in fund balance
, driven by

the

first

draw on the
City’s Pension Reserve Fund to smooth rising pension costs and a $14.6

million General Fund
commitment on capital projects, which is now projected to decline to $9.8 million due to favorable trends. The City is on track to exceed its Economic Anomaly Reserve

Policy
, ending the year with an
estimated 22.2% reserve balance

, or $68.9 million

A key factor influencing long -term pension costs is CalPERS’ investment performance. CalPERS achieved returns of 12.1% in FY24

-
25 and 9.5% in FY23

-
24, exceeding its 6.8% discount rate in both
years. This will help reduce the City’s future Unfunded

Accrued
Liability (UAL) contributions
beginning in FY26

-
27 . However, global economic uncertainty

related to tariffs
and elevated market
valuations warrant continued fiscal caution.

The City also continues to address the funded status of the Self -Insurance Fund, one of its primary Areas of Focus . As of June 30, 2025 (unaudited), the fund is 36.4% funded —

an improvement from

8.1% in FY19-20

—

though it remains in the City’s High

-
Risk category and requires ongoing attention.

Public Safety & Security
Public

safety remains one of the City’s top priorities. In FY 2025

-
26, implementation began on the
Collaborative Reform Agreement with the California Department of Justice (CADOJ). The Police Department hired

a
new Police Commander to oversee compliance with the agreement’s 32 required 14 2

reforms. Additional staffing adjustments in this quarter further strengthen the Department’s long - term capacity to meet these goals.

To ensure first responders have the equipment they need, City Council approved a $1.5 million purchase in October 2025 for new digital equipment, including 230 mobile data computers for police vehicles. Staff will return to Council in December 2025 seeking approval of a 10 -year, $7.6 million agreement with Versaterm to replace the City’s aging Computer -Aided Dispatch (CAD) system — enhancing emergency response for both Police and Fire.

Homelessness Response
The City continues to expand compassionate and effective homelessness services. A fourth Outreach Worker—

funded by Measure SST
—

enhanc
es six

-
day-a-week coverage across the city. Since 2021,
outreach teams have cleaned 55 encampments, contacted more than 1,600 individuals, and helped 104 people obtain housing.

Because of grant successes and outside funding, the City anticipates that $571,000 of Measure SST funds dedicated to homelessness services will not be required this year. Staff track these savings to ensure the City remains on track with its commitment to dedicate at least $1 .0 million annually to homelessness response.

City Beautification Efforts

The City continues to make visible progress in community beautification. First

q
uarter staffing
recommendations in Public Works will strengthen efforts in street sweeping, illegal dumping response, and weed abatement. The full details of these requests can be found in the

Departments

section of this document.

A second phase of the City’s signage and wayfinding program has been completed with new digital displays installed at the Plunge at City Hall, North Torrance Library, and Wilson Park. These sleek, high

-
resolution signs create a consistent, modern look and improve communication with residents.

Additional beautification efforts include the installation of new utility box artwork throughout the City and ongoing enhancements to medians in key corridors, including Torrance Boulevard, Hawthorne Boulevard, Madrona Avenue, and Downtown Torrance.

Major capital projects advancing this year include:

•

Parks – Columbia Park : Phase 1 renovations, including the World War II Camp Wall Monument, are moving through design development and preparing for permitting. 15 3

• Parks – El Nido Park: A collaborative project with Torrance Unified School District, with $11.4 million allocated to date; environmental review is underway. •

Park

s
– Paradise Park : Conceptual design approved and 100% design development in progress.
•

Park

s
– Lago Seco Park: Completion of a new sewer line to replace an outdated septic system supporting the Little League facility.
•

Facilities –

Bartlett Senior Center

Completion of repairs to the second
-story walking deck.

Strategic Staffing and Operational Efficiencies
The City is adapting its workforce and service delivery models to meet community needs. While turnover levels remain above historical norms, trends have stabilized. The City’s investment in recruitment and retention —

particularly in public safety
—

has result
ed in the hiring of 20 Police
Recruits, 7 Lateral Officers, and 8 Public Safety Dispatchers as of November 2025.

There are an
additional 8 Police

Officers and 1 Public Safety Dispatch

er
in background checks to further address
the 53.0 vacant FTE in the sworn and Public Safety Dispatcher classifications as of September 30, 2025. The City’s overall vacancy rate is 11.9%, and ongoing recruitment process improvements aim to reduce strain on existing staff.

Technology modernization is also driving efficiency and enhancing customer service. Major initiatives include:

•

Online Business License Applications: A fully electronic application process now improves convenience for new businesses.
•

Citywide Web Redesign:

Phase 1

(of three phases)

is scheduled for launch in February 2025,
with exploration of AI-driven chatbots to

further

improve online service

s
.
•

Enterprise Cashiering: Phase 1 launched in November 2025, with remaining phase projected to be completed in December 2025,

consolidating revenue collection processes citywide.

•

Enterprise Resource Planning System Replacement: Project kickoff is scheduled for January 12, 2025, with third-party support from SDI Presence. SDI Presence will support city staff in the needs assessment process, request for proposals development, vendor selection, and contract negotiations process.
•

Library Needs Assessment: Procurement is underway for a consultant to evaluate long-term library needs.
•

Operating Project

–
Automated Meter Upgrade: Continued investment this year supports citywide conversion to remote

-
read meters, giving residents real -time access to water consumption data

16 4

Conclusion
The First Quarter Budget Review demonstrates the City’s continued commitment to strong financial stewardship, public safety, community enhancement, and responsive service delivery. The City remains well-positioned to navigate economic uncertainty while continuing to invest in projects and services that improve the daily lives of Torrance residents.

Citywide Budget Summary
Citywide Revenues Budget Summary

As of September 30, 2025,

citywide

revenues across all

funds totaled

94.7 million
, achieving

16.7 %
of the

FY2
5-26

revenue budget. In comparison, during the same period ending

September 30, 2024

,
the City realized

$
116.6

million

in revenues, representing 21.5

of the

FY24
-25

revenue budget.

Fund
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
General Fund-Operating Fund 286,824,553$ 39,224,357$ 13.7% 302,632,660$ 34, 720,331$ 11.5% 298,736,778$ (3,895,882)$ 98.7% General Fund-Measure SST 25,167,266$

1,929,168$

7.7% 26,183,606$

2,149,115$

8.2% 26,276,840$

93,234$

100.4%
General Fund -Restricted 9,958,325$

11,914,714$

119.6% 4,416,579$

4,206,095$

95.2% 4,413,480$

(3,099)$

99.9%
General Fund-Assigned 7,870,500$

7,870,500$

100.0% 7,111,091$

2,059,284$

29.0% 8,237,134$

1,126,043$

115.8%
Total General Fund 329,820,644$

60,938,739$

18.5% 340,343,936$

43,134,825$

12.7% 337,664,232$

(2,679,704)$

99.2%
AQMD Fund 208,296$

52,938$

25.4% 211,134$

52,024$

24.6% 209,940$

(1,194)$

99.4%
Debt Services Fund 23,107,338$

14,030,911$

60.7% 23,625,753$

14,636,140$

61.9% 23,625,753$

100.0%
Low Mod Fund 40,450$

21,967$

54.3% -$

0.0% -$

0.0%
Meadow Park Parking Lot District 40,064$

19,162$

47.8% 41,205$

0.0% 41,205$

100.0%
Section 8 Housing 8,949,500$

2,155,994$

24.1% 9,685,309$

2,308,807$

23.8% 9,586,620$

(98,689)$

99.0%
Street Lighting Fund 1,866,272$

309,947$

16.6% 1,937,828$

308,628$

15.9% 1,933,957$

(3,871)$

99.8%
Traffic Safety Fund 180,000$

8,574$

4.8% 70,950$

12,755$

18.0% 56,230$

(14,720)$

79.3%
Vanpool Fund 245,871$

36,273$

14.8% 261,749$

40,289$

15.4% 269,650$

7,901$

103.0%
Total Nonmajor Governmental Fund 34,637,791$ 16,635,766$ 48.0% 35,833,928$ 17, 358,643$ 48.4% 35,723,355$ (110,573)$ 99.7% Airport Fund 18,342,326$

5,406,661$

29.5% 21,044,124$

4,785,933$

22.7% 22,595,010$

1,550,886$

107.4%
Sanitation Fund 18,918,815$

2,880,827$

15.2% 18,859,697$

2,343,264$

12.4% 19,358,650$

498,953$

102.6%
Sewer Fund 8,616,082$

1,530,366$

17.8% 8,201,108$

1,307,662$

15.9% 8,262,897$

61,789$

100.8%
Transit Fund 35,233,572$

8,560,059$

24.3% 38,508,429$

3,315,994$

8.6% 37,556,050$

(952,379)$

97.5%
Water Fund 54,803,501$

11,280,853$

20.6% 61,768,887$

12,904,714$

20.9% 63,045,388$

1,276,501$

102.1%
Total Enterprise Funds 135,914,296$

29,658,766$

21.8% 148,382,245$

24,657,567$

16.6% 150,817,995$

2,435,750$

101.6%
Fleet Services Fund 13,300,160$

3,487,596$

26.2% 15,269,616$

3,447,332$

22.6% 13,347,800$

(1,921,816)$

87.4%
Self-Insurance Fund 23,659,000$

5,913,500$

25.0% 24,178,667$

6,087,982$

25.2% 24,193,800$

15,133$

100.1%
Total Internal Service Funds 36,959,160$

9,401,096$

25.4% 39,448,283$

9,535,314$

24.2% 37,541,600$

(1,906,683)$

95.2%
Redevelopment Agency Fund 3,988,268$

4,007$

0.1% 4,339,486$

1,323$

0.0% 4,339,486$

100.0%
Total Fiduciary Funds 3,988,268$

4,007$

0.1% 4,339,486$

1,323$

0.0% 4,339,486$

100.0%
Total Revenues 541,320,159$

116,638,374$

21.5% 568,347,878$

94,687,672$

16.7% 566,086,668$

(2,261,210)$

99.6%
Prior Year FY24-25 Current Year FY25-26
17 5

Citywide Expenditures Budget Summary

As of September 3 0, 20 25, citywide expenditures across all funds totaled

$
170.5

million,
representing 29.1% of the FY25 -26 expenditure budget. In comparison,

during the same period
ending September 30, 2024, the City

spent
$155.6 million , or 29.7% of the FY24 -25 expenditure
budget.

Across all funds, the citywide budget is projected to operate at a

$7.5 million

deficit
by the end of
the fiscal year.

The following

year
-end

results

are

highlighted below

for
FY25-26

•

The General Fund -Operating Fund is expected to operate at a

projected deficit of

$8.2
million. This fund’s budget was originally adopted with a planned use of fund balance of $8.1 million due to planned use of fund balance to

support
additional one-time contributions to
the Capital Improvement Fund. While the Revenue side of the budget projects a $3.9 million shortfall, this is due to one -time litigation expense in the Airport Fund temporarily lowering Operating Transfers In by $4.7

million. After controlling for this one -time variance, the recurring outcome for the General Fund

–
Operating Fund’s revenue budget is projected to
be a surplus

$800
,000.
•

The General Fund -Measure SST Fund will operate

at a

projected surplus of

$652,000,
primarily driven by the use of grant funds for homelessness efforts offsetting the burden on the Measure SST Fund.

Fund
Amended
Budget
July - September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Project %
of
Budget
General Fund-Operating Fund 287,233,766$ 88, 571,203$ 30.8% 310,938,215$ 98,243,964$ 31.6% 306,910,557$ 4,027,658$ 98.7% (8,173,779)$ General Fund-Measure SST 27,495,124$

16,705,211$

60.8% 26,183,606$

10,737,226$

41.0% 25,624,979$

558,627$

97.9% 651,861$

General Fund -Restricted 166,175$

32,970$

19.8% 7,471,489$

25,056$

0.3% 7,457,524$

13,965$

99.8% (3,044,044)$

General Fund-Assigned 6,435,913$

5,108,237$

79.4% 7,517,299$

1,270,212$

16.9% 7,517,299$

100.0% 719,835$

Total General Fund 321,330,978$

110,417,621$

34.4% 352,110,609$

110,276,458$

31.3% 347,510,359$

4,600,250$

98.7% (9,846,127)$

AQMD Fund 277,141$

118,420$

42.7% 360,478$

203,676$

56.5% 309,696$

50,782$

85.9% (99,756)$

Debt Service Fund 23,107,338$

0.0% 23,625,753$

100.0% -$

Low Mod Fund 65,061$

14,040$

21.6% 70,338$

15,190$

21.6% 60,249$

10,089$

85.7% (60,249)$

Meadow Park Parking Lot District 29,064$

4,239$

14.6% 30,205$

4,444$

14.7% 30,205$

100.0% 11,000$

Section 8 Housing 8,825,679$

2,141,642$

24.3% 9,590,801$

2,386,001$

24.9% 9,540,398$

50,403$

99.5% 46,222$

Street Lighting Fund 1,866,272$

309,947$

16.6% 1,937,828$

308,628$

15.9% 1,933,957$

3,871$

99.8% -$

Traffic Safety Fund 180,000$

0.0% 70,950$

0.0% 56,230$

14,720$

79.3% -$

Vanpool Fund 245,871$

36,305$

14.8% 261,749$

40,309$

15.4% 269,650$

(7,901)$

103.0% 0$

Total Nonmajor Governmental Funds 34,596,426$

2,624,593$

7.6% 35,948,102$

2,958,248$

8.2% 35,826,138$

121,964$

99.7% (102,783)$

Airport Fund 16,458,142$

5,332,938$

32.4% 23,981,401$

11,308,440$

47.2% 25,525,959$

(1,544,558)$

106.4% (2,930,949)$

Sanitation Fund 20,062,665$

3,744,391$

18.7% 19,869,652$

3,744,971$

18.8% 18,623,858$

1,245,794$

93.7% 734,792$

Sewer Fund 5, 698,593$ 2,149,882$ 37.7% 7,131,592$ 3,070,656$ 43.1% 7,338,130$ (206,538)$ 102.9% 924,767$ Transit Fund 40,146,302$

8,514,902$

21.2% 46,551,919$

10,698,272$

23.0% 43,251,795$

3,300,124$

92.9% (5,695,745)$

Water Fund 51,905,219$

13,691,334$

26.4% 61,326,156$

15,581,578$

25.4% 56,560,799$

4,765,357$

92.2% 6,484,589$

Total Enterprise Funds 134,270,921$

33,433,447$

24.9% 158,860,720$

44,403,917$

28.0% 151,300,541$

7,560,179$

95.2% (482,546)$

Fleet Services Fund 8,621,125$

2,349,729$

27.3% 14,249,141$

3,550,290$

24.9% 13,540,863$

708,278$

95.0% (193,063)$

Self-Insurance Fund 23,514,888$

6,676,461$

28.4% 24,301,818$

9,254,628$

38.1% 24,114,832$

186,986$

99.2% 78,968$

Total Internal Service Funds 32,136,013$

9,026,190$

28.1% 38,550,959$

12,804,918$

33.2% 37,655,695$

895,264$

97.7% (114,095)$

Redevelopment Agency Fund 1,401,953$

82,125$

5.9% 1,252,179$

69,500$

5.6% 1,251,579$

600$

100.0% 3,087,907$

Total Fiduciary Funds 1,401,953$

82,125$

5.9% 1,252,179$

69,500$

5.6% 1,251,579$

600$

100.0% 3,087,907$

Total Expenditures 523,736,291$

155,583,976.00 29.7% 586,722,569$

170,513,041$

29.1% 573,544,312$

13,178,257$

97.8% (7,457,644)$

Projected Net
Surplus/(Deficit)
Prior Year FY24-25 Current Year FY25-26
18 6

• The General Fund -Restricted Fund will operate at a projected deficit of $3.0 million, primarily driven by a $ 7.3 million transfer from the City’s California Employers’ Pension Prefunding Trust (CEPPT) Section 115 Fund

to the General Fund Operating Fund.

This fund’s
budget was originally adopted with a planned use of fund balance

of $

2.9 million
.
•

The General Fund -Assigned Fund

will operate at a projected

surplus
of $720,000
attributable to higher operating transfers in for the City’s IT Asset Replacement Fund . This fund’s budget was originally adopted

with a deficit of $107,000

.
•

The Airport

Fund will operate at a

projected deficit of

$2.9 million overall, driven by planned
capital investment in airport hangars and taxiway lighting improvements. This fund’s budget was originally adopted with a planned use of fund balance of $3.0 million. •

The Transit Fund will operate at a projected deficit of $5.7 million overall, driven by the implementation of new services such as Connect Torrance costing $1.9 million without recurring revenue sources to

offset costs and

depreciation of assets totaling $2.1 million
. This
fund’s budget was originally adopted with a planned use of fund balance of $7.8

million.

The

full detail for all
projections can be found in the

Revenues

and the

Expenditures

section of this
document. Additional information for the General Fund

–
Operating Fund and the General Fund –
Measure SST Fund can be found below as well.

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 projections are summarized below.
•

Sales and Use Tax revenues have decreased by $ 90

,000 (
-1.8%) to date , however, are
projected to meet

budget
totaling $61.7 million

based on the latest projections from the City’s
property tax consultant,

HdL
. FY25-26 marks the first-year sales tax is projected

to grow over
the prior year

since FY21
-22 when sales tax peaked

at $63.6 million

.
•

Property Tax revenues have increased by $4 ,700

(+0.3%) to date, however , they are
projected to fall short of budget by $361,000

(0.50%) based on the latest projections from the
City’s property tax consultant, HdL. Property Tax is the largest single revenue stream

for the
City, with consistent year-over-year growth,

and is

projected to grow

4.8% in FY25
-26

Revenue Type
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Sales and Use Tax 62,525,957$ 4,917,256$ 7.9% 61,701,050$ 4,827,397$ 7.8% 61,694,739$ (6,311)$ 100.0% Property Taxes 67,850,489$

1,497,001$

2.2% 72,011,450$

1,501,694$

2.1% 71,650,383$

(361,067)$

99.5%
Utility Users Tax 46,002,866$

8,262,827$

18.0% 43,313,300$

6,942,044$

16.0% 42,612,450$

(700,850)$

98.4%
Charges for Services 25,217,466$

4,791,470$

19.0% 25,928,210$

5,285,101$

20.4% 25,876,090$

(52,120)$

99.8%
Operating Transfers In 32,995,207$

12,809,733$

38.8% 43,227,317$

9,937,253$

23.0% 39,806,358$

(3,420,959)$

92.1%
Total Revenues 234,591,985$

32,278,287$

13.8% 246,181,327$

28,493,489$

11.6% 241,640,020$

(4,541,307)$

98.2%
Prior Year FY24-25 Current Year FY25-26
19 7

• Utility Users’ Tax revenues have decreased by $ 1.3 million ( -16 .0 %) to date and is projected

to fall short of budget by $701,000

1.6%)

based on currently projected electricity,
gas, cable, cellular, and telecommunications consumption and use rates.

The primary driver
of change

is a reduction in the

cellular category of UUT
.
•

Charges for Services revenues have increased by $494

,000 (+1

0.3 %) to date, however, it is
projected to fall short of budget by $52,000 ( -0.2%). This is primarily due to shortfalls in Community Development partially offset by a surplus in Community Services. •

Operating Transfers In revenues have decreased by $2.9 million (-22

.4
%) to date and are
projected to have a shortfall of $3.4 million at year-end. This projected shortfall is largely due to

anticipated

one
-time litigation expenses in the Airport Fund offsetting land lease revenue transfers to the General Fund by $4.7 million

After controlling for these one-time litigation
expenditures, the Operating Transfers In

classification

would
project a

$1.3 million

surplus
.

General Fund-Measure SST Fund Budget Summary
The General Fund-Measure SST Fund focuses on the revenues and expenditures related to the 0.5% 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 & Comm unity Services/Programs ; and

Emergency Responsiveness

As
the City’s governing body, 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 City Council and review the fund’s annual audited financials.

As of September 30, 2025, this fund realized overall expenditures of

10.7 million,

achieving 41.0%
of the FY25-26 budget. Overall, it is projected that revenues will exceed expenditures by

$
652,000

by
fiscal year-end. The following table

provides
further detail of the year-to-date expenditures by the
Measure SST Fund’s four

priority areas
.

General Fund-Measure SST Fund
FY25-26
Amended
B
udget
FY25-26
Actuals
FY25-26
Projection
Quality of Life
Restore/Maintain Public Safety 13, 181,053 3,321,625 13,181,053 Homelessness Response Efforts 1,003,520 27,808 432,266 Fiscal Sustainability
Reserve Contribution 5,000,000 1,250,001 5,000,000 Emergency Responsiveness
Cyber Security Upgrades 1,020,320 159,077 1,032,945 Deferred Maintenance & Community Services/Programs
Capital Contribution 5,978,715 5,978,715 5,978,715 Total Expense 26,183,608$

10,737,226$

25,624,979$

20 8

This will be examined in more detail in the corresponding City Manager’s Office, Community Services, and Information Technology

Department
sections as well as the

Capital Improvement

Plan

section.

Fund Balance of General Fund

The City’s FY25 -26 Adopted Operating Budget and Capital Improvement Plan

was approved with
planned

use of fund balance totaling $11.1 million

As shown above, the Fund Balance of the General
Fund is projected to decrease by $9.8 million in FY25

-
26 , an improvement over the adopted budget
by $1.3 million

The reduction in Fund Balance

is primarily driven by a $7.3 million drawdown on the
City’s

Pension Reserve Fund (Section 115 Trust) , partially offset by a

$2.3 million contribution and
projected investment returns, as part of balancing the rising pension costs noted in the City’s 10-year projection. Additionally, Council approved a $14.6 million commitment from the General Fund

–
Operating Fund to invest in critical projects

such as
City Facilities and Parks, which required partial
use of the City’s Unassigned Fund Balance.

The City’s adopted fiscal policy sets a 20%

Economic Anomaly Reserve balance
based on the
currently approved expenditure appropriation for the General Fund-Operating Fund, which in FY25- 26 translates to

$62.2 million

As shown in the table above, in FY25 -26, the City is exceeding this amount with an Economic Anomaly Reserve of $68.9 million, or 22.2%.

Fund Balance
FY23-24
Audited
FY24-25
Unaudited
FY25-26
Projected Difference
Nonspendable 2,661,453 1 ,822,932 929,896 (893,036) Restricted 31,039,967

44,224,849

41,180,805

(3,044,044)

Cable TV 3,248,120

3,372,213

3,570,566

198,353

Pension Reserve 27,791,847

40,852,636

37,610,239

(3,242,397)

Assigned 7,684,075

81,100,002

81,819,837

719,835

Technology Replacement 7,684,075

12,193,794

12,913,629

719,835

Economic Anomaly Reserve -

68,906,208

Unassigned 78,749,461

25,118,042

18,489,160

(6,628,882)

Economic Anomaly Reserve 12,883,872

Other Unassigned 65,865,589

25,118,042

18,489,160

(6,628,882)

Total Fund Balance 120,134,956$ 152,265,825$ 142,419,698$ (9,846,127)$

21 9

Program Modifications
This section provides a summary of Program Modifications recommended for approval by the Finance and Government Operations Committee that will be presented to City Council for consideration and approval.

Revenue Budget Changes by Department

As shown on the preceding table, the City’s FY25 -26 operating budget is recommended to

increase
$1.6 million

across the General Fund

–
Operating Fund, Fleet Fund, and Airport Fund . Additional details can be found in the

Departments

section of this document.

Citywide Staffing Changes by Fund

As shown above, the City’s FY25-26 operating budget is recommended to have an overall increase of

9.53 FTE across the funds listed totaling $1.2 million. Additional details

on the specific classifications
and their justification can be found in the Departments

section of this document.

Department
General Fund Cost
Impact
Fleet Fund Cost
Impact
Airport Fund Cost
Impact
General Services -$ (194,654)$ 876,600$ Non-Departmental 845,000$

Public Works 32,028$

Revenue Total 877,028$

(194,654)$

876,600$

Fund
FY24-25
Actual
FY25-26
Adopted
B
udget

FY25-26
A
mended
Budget

FY25-26
Q
1 Proposed
Budget
FY25-26
Increase/
D
ecrease
Total
Fiscal
I
mpact
General Fund 1,156.55 1,161.50 1,170.50 1,182.03 11.53 1,444,283$ Airport Fund 12.17 12.17 12.17 12.17 - -$

AQMD 0.90

0.90 0.90

0.90 -

-$
Area G Fund 1.00

1.00 1.00 1.00 -

Fleet Services Fund 33.60 33.60 33.60 32.10 (1.50) (194,654)$

Low Mod Fund 0.30

0.30 0.30

0.30 -

-$
Sanitation Fund 39.90 39.90 39.90 39.90 -

Section 8 Housing 5.33

5.33 5.33

5.33 -

Self-Insurance Fund 7.50

7.50 7.50

7.50 -

Sewer Fund 15.80 15.80 15.80 15.80 -

Transit Fund 196.80 205.80 196.80 196.30 (0.50)

(36,168)$

Vanpool Fund 0.70

0.70 0.70

0.70 -

Water Fund 38.40 38.40 38.40 38.40 -

Other - Capital Improvement/Grants 24.30 24.30 24.30 24.30 -

Total FTE Count 1,533.25 1,547.20 1,547.20 1,556.73 9.53 1,213,461$ 22 10

Citywide Staffing Changes by Department

As shown above, the City’s FY25-26 operating budget is recommended to have an overall increase of

9.53 FTE across the Departments listed totaling $1.2 million. Additional details

on the sp
ecific
classifications and their justification

can be found in the
Departments

section of this document.

Non-Wage Expenditure Budget Changes by Department

As shown above, the City’s FY25-26 operating budget is recommended to have an overall increase of $2.4 million for various non -wage activities with an additional $100,000 in one -time costs to fund comprehensive User Fee and Development Impact Fee

(DIF)

s
tudies. Additional details can be found
in the

Departments

section of this document.

Department
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
City Attorney 14.00 14.00 14.00 15.00 1.00 85,566$ City Clerk 9.00 9.00 9.00 9.00 -

-$
City Council 7.00

7.00 7.00

7.00 - -$
City Manager 47.30 45.25 45.25 46.25 1.00 47,776$ City Treasurer 2.00

2.00 2.00

2.00 - -$
Community Development 74.00 77.00 77.00 77.00 - 14,523$

Community Services 205.15 205.15 205.15 207.18 2.03 141,655$ Finance 38.25 38.25 38.25 38.75 0.50 215$ Fire 203.00 203.00 203.00 203.00 - -$ General Services 116.75 117.75 117.75 116.25 (1.50) (70,872)$ Human Resources 14.00 16.00 16.00 16.00 - -$ Information Technology 39.00 44.00 43.00 43.00 - -$ Police 359.00 354.00 355.00 359.00 4.00 842,392$ Public Works 208.00 209.00 209.00 212.00 3.00 188,374$ Transit 196.80 205.80 205.80 205.30 (0.50) (36,168)$ Total 1,533.25 1,547.20 1,547.20 1,556.73 9.53 1,213,461$ Department
General Fund Cost
Impact
Airport Fund Cost
Impact
General Fund One-
Time Cost Impact
City Manager's Office (65,000)$ -$ -$ Community Services 34,000$

F
inance -$

100,000$

General Services -$

1,791,600$

Non-Departmental (121,919)$

Police 632,797$

Public Works 87,724$

Expenditure Total 567,602$

1,791,600$

100,000$

23 11

Capital Improvement Plan

The City of Torrance develops a five - year Capital Improvement Plan (CIP) budget to make critical investments in the City’s assets across eight main categories listed above

Included i n the table
above is the life

-
to-date amended budget , actuals spent in any prior year of the project, actuals through

September 30, 2025, of the current fiscal year,

as well as the life
-to-date balance of the
project(s).

Below is a summary of a few major projects in process
:
•

Parks – Columbia Park: This project is currently in Phase 1

of
a three-phase project to fully
renovate the park; starting with the World War II Camp Wall M onument. To

date
, a budget of
$10.2 million

has been allocated to this site.

The City Council approved the

schematic design
at its April 22,

2025,
meeting providing the necessary approval to continue des ign development for this project. It is anticipated that the City should be able to

submit plans to
the Community Development Department as the City progresses forward to issuing Bids seeking contractors to implement the project thereafter. •

Parks – El Nido Park: This project is a collaboration between the City and Torrance Unified School District. To date, a budget of

$11.4 million

has been allocated to this site while the City
continues to pursue outside funding sources to mitigate additional funding needed to complete this project. Staff are currently working through the California Environmental Quality Act (CEQA) process for this project after having completed initial conceptual designs and

community engage
ment.
•

Parks – Paradise Park

This project

plans to fully renovate Paradise Park
. To date, a budget
of $ 9.7 million

has been allocated to this site. The City Council approved the

conceptual

design at its September 9, 2025, meeting providing the necessary approval to continue design development for this project. The City continues to coordinate

these efforts
to complete
100% design documents.

Capital Project Type
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Parks 39,393,245 1,255,755 197,013 37,940,478 Facilities 58,085,781 4,747,760 1,048,785 52,289,236 IT Infrastructure 395,000 - - 395,000 Public Right of Way 118,214,464 42,803,464 841,040 74,569,960 Sewer/Water Utilities 43,436,234 18,099,208 18,354 25,318,672 Storm Drain/Basins 17,992,195 8,906,844 325,539 8,759,812 Operating Project 26,216,049 10,238,689 1,122,572 14,854,788 Other 4,812,625 455,405 190,373 4,166,847 Total Expenditures 308,545,593$ 86,507,126$ 3,743,675$ 218,294,792$ 24 12

• Parks – Lago Seco Park : The $123,000 spent at Lago Seco Park during the current fiscal quarter funded a sewer line installation at the park to replace a septic tank that had been historically utilized by the

Little League

facility.

•

Facilities – Torrance City Hall: The $804

,000 spent at

City Hall completed the renovation of
Building & Safety, Risk and Workers Compensation Divisions as well as the roof in the West Annex affecting the

interior spaces for Community Services and Information Technology . The
remaining phases

currently funded include the completion of the West Annex renovations to the internal office spaces affecting

Information Technology
and renovations to the Employee
Lounge.
•

Facilities – Bartlett Senior Center

The $ 42,000 spent at the Bartlett Senior Center
completed the repairs needed on the Second Story Walking Deck. •

Operating Project

–
Automated Meter Upgrade: The $ 747,000

spent this year

marks
continued investment in automated meters for the City’s water meters citywide. This investment will allow for remote monitoring of water consumption

and
allow for residents to
view their water consumption live,

other utilities such as Southern California Edison.

•

Operating Project

–
Citywide Web Redesign: The $26,000 investment this year is related to continued advancement in the City’s website overhaul. The new design continues to progress with content creators beginning to build out individual pages in the content management system. It is expected the first phase, of three phases, which includes the City’s main webpage will go live in February 2025

•

Operating Project – Enterprise Resource Planning System Replacement:

While the
allocated budget to date has not been expended, staff has begun initial work with our

third
-
party consultant, SDI

Presence.

Staff have mapped out the project kickoff for this effort to start January 12, 202

6 . SDI Presence will support city staff in the

needs assessment process,
request for proposals development,

vendor selection, and contract
negotiations processes
including establishing a new chart of accounts for the City.

The full details of all projects can be found in the

Capital Improvement Plan
section of this
document. In the Finance Department section, a program modification

is
requested to establish a
new Operating Project

complete comprehensive Fee and

Development Impact Fee (
DIF)

Studies
.

Areas of Focus
The City has monitored multiple areas closely that require attention in the near term and over the coming budget cycles, including:
•

Self-Insurance Fund:

U
nderfunded by approximately

$
48 .
2 million

•

Cash Balances by Fund:

Complete

•

Labor Trends:

Elevated turnover remains creating

elevated

vacancy rates

25 13

• Expiring Labor Agreements: Complete
•

Aging Infrastructure and City Facilities/Parks:

Capital budget

required exceeds

capacity

•

Pension/OPEB Benefits Liability Management:

Pension
/OPEB funding status below 100%

Self-Insurance Fund
The City’s Self -Insurance Fund covers expenditures associated with non -litigated claims, liability claims and settlements, workers’ compensation cases, and unemployment insurance payments.

This fund generates its revenues by allocating costs to the General Fund, Enterprise Funds, and Internal Service Funds. As of June 30, 2025 (unaudited), this fund was underfunded by approximately $48.2 million

. This is driven by existing outstanding liabilities in workers’ compensation totaling $49.5 million and liability

claims of $18.4 million. As of

June 30, 2025

(unaudited), the fund’s assets

stand at $ 27.5 million. As a result, the Self -Insurance Fund is approximately 36.4% funded, which continues to place it in the High-Risk Category of the City’s Key Performance Indicator tracking. This will be a continued

Area of Focus
in future quarterly budget updates and budget cycles to ensure the City is adequately prepared for funding its exposure.

Cash Balances by Fund
The City has met its reserve policy requirements for the General Fund. As a result, the concerns previously raised regarding low cash balance in th is fund ha

ve
been resolved. With reserve levels
restored, the City does not anticipate reporting this area as a near-term budget focus.

Labor Trends
As of

October 31, 2025

, 2
63 employees are eligible for retirement (based 55 years of age; Employee Classification A). 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. The most cited reasons for recent departures have been better salaries, benefits

,
flexibility and advancement opportunity. In addition to committing to multi-year labor agreements , City Council approved an Enhanced Recruitment and Retention Incentive Pilot program in 2024

, which has been heavily impacted by
consistently higher vacancy
rates.

26 14

The number of retirements and voluntary resignations has improved since the peak of FY21 -22 and FY22-23

As of the four -month period ending

October 31, 2025

, there have been 1
2 retirements and
29 voluntary resignations, compared to 16

and 32

during the prior year, respectively.

Expiring Labor Agreements
The City

has completed negotiations and finalized

agreements with all

labor groups
. With no active
labor negotiations underway, this prior area of focus has been fully resolved. As a result, staff do not anticipate reporting on expiring labor agreements as a near-term budget issue.

Aging Infrastructure and City Facilities/Parks
The City owns and operates $1 billion worth of buildings, public facilities, and infrastructure (book value). With each passing year, these buildings age and deteriorate, many of which are still in their original condition. Currently, the City’s capital assets have passed their half -life mark, requiring heavy maintenance, upgrades, and repairs. During FY2 3-24, the City completed a

Building
Index
Study and assessed the current state of the City’s building and park assets.

The Building Index Study,
which did not include park playgrounds, playing courts, or utility infrastructure at parks, identified $205 million as the minimum investment required over the next 10 years to maintain the current state of the City’s buildings. This translates to approximately $20.5 million per year, exceeding the City’s fiscal capacity of approximately $8 million on a recurring basis. The Building Index Study examined 115 assets, of which 60 fell in the “Poor” or “Critical” categories with 48 in the “Fair” category and 7 in the “Good” category. This will be of continued focus in coming budget cycles to ensure the City’s assets are properly maintained.

Pension/OPEB Benefits Liability Management
In FY24

-
25, the California Public Employees’ Retirement System (CalPERS) reported investment gains of 1 2.1%, surpassing its discount rate of 6.8%. This will translate to a decrease in unfunded accrued liability (UAL)

payments over the
amortized period of 20 years, beginning in FY2

28. To help
mitigate the impacts of

fluctuations in

CalPERS
investment performance , the City established a
Section 115 Trust with CalPERS

(CEPPT). This restricted fund serves as a supplemental reserve to the City’s Economic Anomaly Reserve , specifically dedicated to pension costs. The City is

projected to
4 Months of
FY25-26
Retirements 72 59 33 48 12
V
oluntary Resignations 133 121 96 87 29
Departures or Death 13 21 18 20 12
Total Separations 218 201 147 155 53
FY21-22 FY22-23 FY23-24 FY24-25
27 15

make its first drawdown of $7.3 million from the CEPPT Fund in FY25 - 26 to smooth the rising pension costs previously mentioned.

As part of negotiations

with the Torrance Professional and Supervisory Association (TPSA) and Engineers and Fiscal Employees

Association
(TFEA) in 2024

,
the PARS supplemental pension was
frozen capping the

accrued liability of this plan. The City will continue to make its actuarially determined contribution each fiscal year addressing the funded status of this plan over coming budget cycles.

The City also established a Section 115 Trust Fund to address the UAL balance for its other post - employment benefits (OPEB) . The City continues to fund its actuarially determine d contributions each year targeting incremental improvement in its funded status over coming budget cycles . The City’s OPEB Funded Status is closely tracked in the City’s Financial Key Performance Indicators each year.

Strategic Plan Performance Indicators by Department
In FY24 - 25, 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 for Departments with a focus

on aligning
the metric with their assigned Strategic Plan
priorities and goals. The City has implemented the use of AchieveIt, the same platform leveraged for tracking Strategic Plan progress to automatically collect updates on a quarterly basis. In the first half of 2026 the City will launch

an online KPI Dashboard, which will be made available i n FY25

26. In the
tables below, each department has listed their approved KPIs, their KPI benchmarks, and

outcomes
for the period covering

July 1, 2025,

to September 30, 2025.

28 16

Strategic
Plan Sub-
Goals(s)
Key Performance Indicator (KPI) Frequency Target Value Value as of September 30, 2025 Status
N/A Closure rate on civil litigation cases Quarterly >=70% 220% O n-Track N/A Closure Rate on Work Requests Quarterly >=60% 75% O n-Track N/A Total number of training opportunities provided by the City Attorney's Office Quarterly >=1 0 O ff-Track
N/A Percentage of Strategic Plan Subgoals Off Track Quarterly <=5% 0% O n-Track

5.2.1 Number change of unhoused individuals within the City Annually <=0 31 O ff-Track

11.7.4 Viewer Retention Rate (greater than 15 seconds) Quarterly >=70% watch over
15 seconds of
content
70% On-Track

3.2.2 Number of revitalized and redeveloped commercial properties through the City's Commercial Facade Improvement Program Quarterly >=1 0 O ff-Track

3.6.2 Code Compliance Closure Rate Quarterly >=85% 83% O ff-Track

3.6.2 Customer Satisfaction Rate at Permit Center Quarterly >=90% 93% O n-Track

3.6.2 Customer Wait Time at Permit Center (minutes) Quarterly <=20 m in 8 min On-Track

1.1.7 Number of public art pieces installed Quarterly >=2 0 O ff-Track

4.4.3 Number of library visitors; Main Library Quarterly 39, 000 39,261 On-Track

4.4.3 Number of library visitors: Branch Libraries Quarterly 52, 500 52,655 On-Track

4.5.1 Average enrollment rates of offered classes Quarterly >=75% 74% O ff-Track

1.1.4 Average number of days to close Service Requests Quarterly <=5 d ays 7 Off-Track City Attorney's Office
City Manager's Office
Community Development
Community Services
29 17

Strategic
Plan Sub-
Goals(s)
Key Performance Indicator (KPI) Frequency Target Value Value as of September 30, 2025 Status
N/A Average number of days to process a Budget Transfer Quarterly <=3 days 5.7 Off-Track N/A Average number of days to process a Change Order Quarterly <=3 days 2.3 On-Track

8.5.1 Number of audit findings from 3rd party independent audits Annually <=1 3 Off-Track

8.5.2, 8.5.3 Number of public engagement meetings Quarterly >=1 1 On-Track

8.2.3 Number of Business Licenses Annually >=13,500 13,987 On-Track

10.5.4 Performance of 1st unit on-scene for all Fire incidents at the 90th percentile (minutes) Quarterly <= 6 min 24 secs 7min 50 secs Off-Track

10.5.4 Performance of 1st unit on-scene for all EMS incidents at the 90th percentile (minutes) Quarterly <=6 min 4 secs 7 min 45 secs Off-Track

10.1.1 Percentage of initiated (performed) state-mandated inspections Quarterly 100% 90% Off-Track
N/A Number of TUSD campuses that received fire and life safety training Annually >=30 25 Off-Track

8.4 Number of days to complete facility work orders Quarterly <=3 days 2.5 On-Track

11.1 Percentage of City Fleet Vehicles that are zero-emission Quarterly 100% 10% Off-Track N/A Number of days to complete central services work orders Quarterly <=3 days 3 On-Track N/A Number of days to complete graffiti work orders Quarterly <=2 days 1 On-Track General Services
Finance
Fire
30 18

Strategic
Plan Sub-
Goals(s)
Key Performance Indicator (KPI) Frequency Target Value Value as of September 30, 2025 Status

9.5.2 Percentage of benefits eligible employees who attend the Benefits Fair Annually >=40% 36% Off-Track

9.5 Average number of days to establish eligibility lists (Safety) Quarterly <=90 days 54 On-Track

9.5 Average number of days to establish eligibility lists (Non- Safety) Quarterly <=90 days 46 On-Track

9.5 Average number of days to process Personnel Action Forms Quarterly <=3 days 3.08 Off-Track

9.5 Average number of days to complete NeoGov Requisition Quarterly <=2 days 1.92 On-Track

9.5.2 Average number of days to enroll employees in benefits Quarterly <=30 days 17.68 On-Track

9.5 Citywide Vacancy Rate Quarterly <=10% 11.9% Off-Track N/A Percentage of service requests completed within two hours Quarterly >=98.5% 98% Off-Track N/A Percentage of unplanned maintenance incidents Quarterly <=10% 5% On-Track N/A Cyber Security Incident Closure Rate Quarterly 1 1 On-Track

9.4.2 Percentage of employees who complete cybersecurity training Annually >=90% 92% On-Track

10.2.1,10.2.
2 Average Police Response Time to Emergency Priority One Calls Quarterly 7 minutes 8 min 48 secs Off-Track N/A Number of community engagement meetings/events/forums Quarterly 12 27 On-Track

7.3.1 City's Pavement Condition Index (PCI) rating Annually >70 76 On-Track

11.5.1 Percent of local water supply sold Quarterly 55% 29% Off-Track

11.3.6 Number of street trees Quarterly 44,500 39,095 Off-Track Police
Public Works
Human Resources
Information Technology
31 19

Strategic
Plan Sub-
Goals(s)
Key Performance Indicator (KPI) Frequency Target Value Value as of September 30, 2025 Status

7.1.2 Percent of Bus On-time Performance Quarterly 80% 80.9% On-Track

7.1.2, 7.3.2,

7.3.4, 7.3.6 Total Transit Ridership (All Bus, TCTP and future Micro Transit) Quarterly 500,000 591,134 On-Track N/A Average vehicle revenue miles between mechanical failures Quarterly 6,000 miles 28,026 On-Track N/A Percentage value of fare box recovery Annually 4% 3.8% Off-Track Transit
32 REVENUES
First Quarter Budget Review Report
33 20

Revenues
Citywide Revenues by Fund

As of

September 30, 2025

, City
wide revenues across all funds totaled

94.7 million, achieving

16.7 %
of the

FY25
-26

revenue budget. In comparison, during the same period ending

September 30, 2024

,
the City realized

$
116.6

million

in revenues, representing 21.5

of the

FY24
-25

revenue budget.

The decrease from prior year is mainly due to

the
General Fund and the Transit Fund. The decrease
in the General Fund-Operating Fund of $4.5 million is mainly due to a $1.3 million reduction in

Utility
User’s Tax and

a $

2.9 million

reduction
from Operating Transfers In classifications from the Reserve Fund. The decrease in

the
General Fund-Restricted Fund was mainly due to a $7.1 million reduction in

Operating Transfers

from General Fund
-Operating Fund to the Section 115 Trust

(CEPPT)

Fund
.

The decrease in

the
General Fund -Assigned Fund was mainly due to a $ 5.7 million reduction in Operating Transfers In from General Fund and Measure SST Fund . The decrease in the Transit Fund from the prior fiscal year is mainly due to a decrease in Intergovernmental receipts of $ 5.5 million, offset by

an increase in Operating Transfers

In of $
252,000

Fund
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
General Fund-Operating Fund 286,824,553$ 39, 224,357$ 13.7% 302,632,660$ 34,720,331$ 11.5% 298,736,778$ (3,895,882)$ 98.7% General Fund-Measure SST 25,167,266$

1,929,168$

7.7% 26,183,606$

2,149,115$

8.2% 26,276,840$

93,234$

100.4%
General Fund -Restricted 9,958,325$

11,914,714$

119.6% 4,416,579$

4,206,095$

95.2% 4,413,480$

(3,099)$

99.9%
General Fund-Assigned 7,870,500$

7,870,500$

100.0% 7,111,091$

2,059,284$

29.0% 8,237,134$

1,126,043$

115.8%
Total General Fund 329,820,644$

60,938,739$

18.5% 340,343,936$

43,134,825$

12.7% 337,664,232$

(2,679,704)$

99.2%
AQMD Fund 208,296$

52,938$

25.4% 211,134$

52,024$

24.6% 209,940$

(1,194)$

99.4%
Debt Services Fund 23,107,338$

14,030,911$

60.7% 23,625,753$

14,636,140$

61.9% 23,625,753$

100.0%
Low Mod Fund 40,450$

21,967$

54.3% -$

0.0% -$

0.0%
Meadow Park Parking Lot District 40,064$

19,162$

47.8% 41,205$

0.0% 41,205$

100.0%
Section 8 Housing 8,949,500$

2,155,994$

24.1% 9,685,309$

2,308,807$

23.8% 9,586,620$

(98,689)$

99.0%
Street Lighting Fund 1,866,272$

309,947$

16.6% 1,937,828$

308,628$

15.9% 1,933,957$

(3,871)$

99.8%
Traffic Safety Fund 180,000$

8,574$

4.8% 70,950$

12,755$

18.0% 56,230$

(14,720)$

79.3%
Vanpool Fund 245,871$

36,273$

14.8% 261,749$

40,289$

15.4% 269,650$

7,901$

103.0%
Total Nonmajor Governmental Fund 34,637,791$ 16,635,766$ 48.0% 35,833,928$ 17,358,643$ 48.4% 35,723,355$ (110,573)$ 99.7% Airport Fund 18,342,326$

5,406,661$

29.5% 21,044,124$

4,785,933$

22.7% 22,595,010$

1,550,886$

107.4%
Sanitation Fund 18,918,815$

2,880,827$

15.2% 18,859,697$

2,343,264$

12.4% 19,358,650$

498,953$

102.6%
Sewer Fund 8,616,082$

1,530,366$

17.8% 8,201,108$

1,307,662$

15.9% 8,262,897$

61,789$

100.8%
Transit Fund 35,233,572$

8,560,059$

24.3% 38,508,429$

3,315,994$

8.6% 37,556,050$

(952,379)$

97.5%
Water Fund 54,803,501$

11,280,853$

20.6% 61,768,887$

12,904,714$

20.9% 63,045,388$

1,276,501$

102.1%
Total Enterprise Funds 135,914,296$

29,658,766$

21.8% 148,382,245$

24,657,567$

16.6% 150,817,995$

2,435,750$

101.6%
Fleet Services Fund 13,300,160$

3,487,596$

26.2% 15,269,616$

3,447,332$

22.6% 13,347,800$

(1,921,816)$

87.4%
Self-Insurance Fund 23,659,000$

5,913,500$

25.0% 24,178,667$

6,087,982$

25.2% 24,193,800$

15,133$

100.1%
Total Internal Service Funds 36,959,160$

9,401,096$

25.4% 39,448,283$

9,535,314$

24.2% 37,541,600$

(1,906,683)$

95.2%
Redevelopment Agency Fund 3,988,268$

4,007$

0.1% 4,339,486$

1,323$

0.0% 4,339,486$

100.0%
Total Fiduciary Funds 3,988,268$

4,007$

0.1% 4,339,486$

1,323$

0.0% 4,339,486$

100.0%
Total Revenues 541,320,159$

116,638,374$

21.5% 568,347,878$

94,687,672$

16.7% 566,086,668$

(2,261,210)$

99.6%
Prior Year FY24-25 Current Year FY25-26
34 21

The City projects revenues to total $566.1 million as of the fiscal year ending June 30, 2026. The projected revenue would result in a $2.3 million, or 0.4%, budget shortfall. Budget deficits in the overall General Fund

and Internal Service Funds are

partially
offset by a surplus from the Enterprise
Funds.

Details driving the change from prior fiscal year

and projected year

-
end balances

are discussed in
the following sections.

Citywide Revenues by Classification

Citywide revenues

are presented by classification
for all funds as of

September 30, 2025

The change
from the prior fiscal year for the three months ended September 30 are mainly due to

a $

16.0 million

reduction from Operating Transfers In, a $5.1 million

reduction from Intergovernmental receipts,
a $ 2.6 million

reduction
from Taxes, partially offset by a

$2.4 million increase in

Charges for
Services.

Quantitative and qualitative factors

of the change are discussed in the following sections.

General Fund-Operating Fund Revenue by Classification
This section highlights the revenues of the main General Fund -Operating Fund. The City’s General Fund-Operating Fund revenue budget for FY25-26

increased by $15.8 million or 5.5% for a total

$302.6

million. This is largely due to steady growth in Operating Transfers In, Licenses, Fees and Permits, and Use of Money and Property . The details of

revenue activity

as of

the
first quarter of
FY25-26

are covered in the following section . It is also important to note that

the enacted Measure
SST transaction and use tax starting October 1,

2022

,
benefits the General Fund -Operating Fund
Revenue through Operating Transfers In to support public safety and

IT operations
. Overall, the
City’s General Fund -Operating Fund revenue budget is projected to

generate a year
-end deficit of
$3.9 million driven by $4.7 million in additional one -time expenditures in the Airport Fund suppressing

land lease revenue transfers to the General Fund
–

Operating Fund
.

Classification
Amended
Budget
July -
September
Ac
tuals
Budget
Received
Amended
Budget
July -
September
Ac
tuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(D
eficit)
Projected
% of
B
udget
Taxes 233,514,935$ 19,207,016$ 8.2% 235,400,519$ 16,651,484$ 7.1% 233,810,049$ (1,590,470)$ 99.3% Licenses, Fees, and Permits 18,414,731$

2,033,139$

11.0% 19,695,580$

1,528,054$

7.8% 21,098,220$

1,402,640$

107.1%
Fines, Forfeitures, and Penalties 822,774$

95,352$

11.6% 1,341,040$

269,895$

20.1% 2,100,950$

759,910$

156.7%
Use of Money and Property 58,126,812$

26,207,183$

45.1% 64,133,499$

26,168,891$

40.8% 63,658,498$

(475,001)$

99.3%
Intergovernmental 39,195,088$

9,136,538$

23.3% 41,319,972$

4,020,092$

9.7% 40,363,560$

(956,412)$

97.7%
Charges for Services 132,962,475$

26,888,297$

20.2% 146,469,175$

29,298,170$

20.0% 147,125,570$

656,395$

100.4%
Other Revenues 1,106,068$

1,306,791$

118.1% 1,945,110$

1,035,525$

53.2% 2,177,630$

232,520$

112.0%
Operating Transfers In 56,987,508$

31,764,057$

55.7% 57,853,215$

15,715,560$

27.2% 55,562,423$

(2,290,792)$

96.0%
Other Financing Sources 189,768$

0.0% 189,768$

100.0%
Total Revenues 541,320,159$

116,638,373$

21.5% 568,347,878$

94,687,671$

16.7% 566,086,668$

(2,261,210)$

99.6%
Prior Year FY24-25 Current Year FY25-26
35 22

General Fund-Operating Fund Revenues by Classification

As of

September 30, 2025

, the General Fund
-Operating Fund realized revenues of

34.7 million
,
achieving

11.5 %

of the

FY25
-26

revenue

budget. During the same period ending
September 30,
2024

, the City realized

39.2 million

in revenues, representing 13.7

of the

FY24
-25

revenue budget.

It is important to note that certain General Fund-Operating Fund

revenues are not realized until
after December, including property tax, business license taxes and most franchise fees. The timing of these receipts and current economic factors

result

in variances from the annual budget
,

which
are discussed in more detail below.

Most

General Fund
-Operating Fund

revenue
s

are

generated from

the Tax
es

classification, which
include

sales

& use,
property

utility users’
,

occupancy
,

and

business
license

taxes. The Taxes

classification accounts for approximately

67.3 % of the City’s

General Fund
-Operating Fund

revenue
budget for FY25-26

General Fund-Operating Fund Tax Revenue by Classification

Overall, the City ’s tax revenues are expected to fall short

of
the FY25-26

amended budget by $ 1.6
million, primarily driven by a shortfall in utility users’

tax of $700,000

, property taxes
of $360,000,
construction tax of $ 266,000

, and business license tax of

$
170,000

. Details of the
decreases are
discussed in the following sections.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Taxes 203,088,319$ 17,210,061$ 8. 5% 203,810,470$ 14,598,199$ 7.2% 202,220,000$ (1,590,470)$ 99.2% Licenses, Fees and Permits 16,936,668$

2,032,448$

12.0% 18,865,230$

1,521,428$

8.1% 19,339,760$

474,530$

102.5%
Fines, Forfeitures and Penalties 642,774$

86,885$

13.5% 1,270,090$

257,373$

20.3% 2,044,720$

774,630$

161.0%
Use of Money and Property 7,154,388$

2,241,883$

31.3% 9,014,403$

2,796,514$

31.0% 8,881,350$

(133,053)$

98.5%
Intergovernmental 490,127$

3,361$

0.7% 435,630$

306,545$

70.4% 489,150$

53,520$

112.3%
Charges for Services 25,217,466$

4,791,469$

19.0% 25,928,210$

5,285,101$

20.4% 25,876,090$

(52,120)$

99.8%
Other Revenues 299,604$

48,517$

16.2% 81,310$

17,918$

22.0% 79,350$

(1,960)$

97.6%
Operating Transfers In 32,995,207$

12,809,733$

38.8% 43,227,317$

9,937,253$

23.0% 39,806,358$

(3,420,959)$

92.1%
Other Financing Sources -$

0.0% -$

0.0%
Total Revenues 286,824,553$ 39,224,357$ 13.7% 302,632,660$

34,720,331$ 11.5% 298,736,778$

(3,895,882)$

98.7%
Prior Year FY2024-25 Current Year FY2025-26
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Sales and Use Tax 62,525,957$ 4,917,256$ 7.9% 61,701,050$ 4,827,397$ 7.8% 61,694,739$ (6,311)$ 100.0% Property Taxes 67,850,489$

1,497,001$

2.2% 72,011,450$

1,501,694$

2.1% 71,650,383$

(361,067)$

99.5%
Utility Users Tax 46,002,866$

8,262,827$

18.0% 43,313,300$

6,942,044$

16.0% 42,612,450$

(700,850)$

98.4%
Business License Tax 11,314,294$

382,817$

3.4% 11,644,650$

232,854$

2.0% 11,474,078$

(170,572)$

98.5%
Occupancy Tax 13,815,048$

1,301,078$

9.4% 13,305,020$

877,191$

6.6% 13,219,350$

(85,670)$

99.4%
Construction Tax 1,572,665$

849,082$

54.0% 1,830,000$

217,020$

11.9% 1,564,000$

(266,000)$

85.5%
Oil Severance Tax 7,000$

0.0% 5,000$

100.0%
Total Revenues 203,088,319$ 17,210,061$ 8.5% 203,810,470$

14,598,200$ 7.2% 202,220,000$

(1,590,470)$

99.2%
Prior Year FY2024-25 Current Year FY2025-26
36 23

Sales and Use Tax
Sales and use tax (sales tax) is one of the City’s largest General Fund -Operating Fund revenue sources, derived from point -of

-
sale transactions

(Bradley
-Burns 1% allocation) and Los Angeles
County pool allocations. The City receives sales tax

revenue
from a wide range of industries, as
shown below.

Receipts of $ 4.8 million through the first fiscal quarter are tracking

below
prior year’s actuals by
$90

,000
or 1.8% while the projected annual amount falls just short of

budget by $
6,300

, or 0.1%
. Sales
tax receipts peaked in

FY
21 -
22 at $63.6 million

and
are projected to increase

4.2% from prior year’s
actuals. As of the latest available data from the California Department of Tax & Fee Administration, sales tax revenues are experiencing

declines
in Autos and Transportation

and Fuel and Service
Stations, while the State and County Pools and General Consumer Goods are experiencing an increase

from the previously reported period
.

With sales tax revenues remaining relatively flat from the prior year , after controlling for one -time activity in the prior year, staff continue to be cautious with

forecasts
. The Fed

decreased
the Federal
Funds Rate to

a range of

3.75-4.00% in October 2025, and the

Fed’s
policy to slow inflation has
affected sales across industries. For instance, the Autos and Transportation and Fuel and Service Stations categories have experienced a decrease over the past year. In addition, the September 2025 Consumer Price Index for All Urban Consumers (CPI-U) was

3.0 %. The inflation rate continues to drive
up the cost of many taxable products , and consumer spending

is anticipated

to remain

stagnant

through the

end of the

202
5 calendar year.

Autos &
Transportation 22%
Building &
Construction 7%
Business & Industry
9%
Food & Drugs 3%
Fuel & Service
Stations 4%
General Consumer
Goods 24%
Restaurants &
Hotels 12%
State and County
Pool 18%
Transfers 0%
Sales Tax by Industry Group
37 24

Property Tax
The City’s property tax base consists of a healthy mix of residential, commercial , and industrial properties, with the residential

category
comprising most of the total assessed value in Torrance.

Based on

calendar year 202

5 data from
property tax consultants,

HdL Coren & Cone,

the City’s

FY25
-
26 net taxable assessed value increased

to $

42.1 billion or

4.6 % when compared to the same period
during the prior year, keeping Torrance in the top 10 highest value cities in Los Angeles County

at
eighth

place.

Property tax revenues are primarily received in December and April each year. As of September 30, 2025

,
$1.5 million in

property tax receipts

had been
received, matching the amount received during
the same period last year. Presently, the City projects the total year-end revenue to be

slightly lower
than the property tax budget by $361,000 for FY25-26, including property

transfer tax and vehicle
license

f
ee

s
wap & repayment.

2004,

the

California

Legislature

approved
a

property
tax

swap

v
ehicle license

f
ees (VLF) as part
of a state and local government budget agreement. As a result of the swap, more than 90% of the City’s Motor License Vehicle Fund was swapped for property taxes. The centerpiece of this legislation was the permanent reduction of the VLF rate. This revenue is received from the Los Angeles

County
Assessor

twice a year in January and May, and therefore not realized in the

first

fiscal

quarter
.

Residential, 67%
Commercial,
16%
Industrial, 8%
All Other, 8%
Land Use Composition by Taxable Value
38 25

Utility Users’ Tax Revenue by Classification
Utility users’ tax (UUT), the City’s third largest revenue source, is a 6.5% consumption tax applied on the usage of utilities such as electricity and gas, and a 6.0% tax applied to water.

Current period receipts total $6.9 million, which is 16.0% lower than the amount received during the same period last year. Electricity experienced

the
most significant

decrease
, primarily due to a one-
time payment received in the first fiscal quarter last year from one of the electricity providers .

Presently, the City projects that total year -end revenue will

fall short of budget by approximately
$700,000

, or

1.6%.

Business License Tax
The City serves approximately 13,987 businesses, including outside contractors. Annual renewals for this revenue source are billed in December, due on January 1 , and delinquent on February 1. As of September 30, 2025

, business license tax receipts are

$
150,000 or 39.2% lower than the prior year
and are projected to fall short of

the year-end budget by 1.5%. This decrease is primarily due to a leveling out of compliance service efforts by the City’s third-party

consultants
.

Occupancy Tax
Occupancy tax is an 11% tax on room charges to guests staying at hotels , motels, and short-term rentals. As of

September 30, 2025
, the City has received $877,000

, a
decrease

of $424

,000
compared
to September 30, 2024 , receipts of $ 1.3 million . According to STR Global, an industry leader in hospitality data and analytics, occupancy rates

hovered around 81.
1% from

October 1
, 2024, to
September 30, 2025,

a decrease of 0.3
% from the same period the previous year. In addition , the average daily rate per room

has
increased by $ 3.11

(+1.9%), from $ 166.30

per night to $ 169.41

per
night. The City’s occupancy rates

have stabilized
after having exceeded pre

-
pandemic levels. This
revenue source will be one highlighted in the upcoming fiscal years with the anticipation of global events in 2026 and 2028. Overall, it is projected that Occupancy Tax receipts will fall short of bud get by

approximately $
86,000

0.6 %.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Electricity 21,080,357$ 5,372,492$ 25.5% 23,690,150$ 4,029,877$ 17.0% 23,779,530$ 89,380$ 100.4% Gas 6,003,793$

745,830$

12.4% 5,475,770$

694,363$

12.7% 5,466,350$

(9,420)$

99. 8%
Refinery: Co-Gen 893,601$

59,710$

6.7% 718,020$

232,100$

32.3% 832,100$

114,080$

115.9%
Refinery: Gas 8,650,211$

225,329$

2.6% 3,775,320$

354,166$

9.4% 3,504,170$

(271,150)$

92.8%
Water 3,760,058$

854,226$

22.7% 4,087,660$

834,329$

20.4% 4,373,650$

285,990$

107.0%
Cable 1,737,373$

211,992$

12.2% 1,315,050$

194,118$

14.8% 1,163,710$

(151,340)$

88.5%
Cellular 1,298,908$

400,203$

30.8% 2,056,840$

228,620$

11.1% 1,377,130$

(679,710)$

67.0%
Telecom 2,578,565$

393,047$

15.2% 2,194,490$

374,471$

17.1% 2,115,810$

(78,680)$

96.4%
Total Revenues 46,002,866$ 8,262,829$

18.0% 43,313,300$ 6,942,044$

16.0% 42,612,450$ (700,850)$

98.4%
Prior Year FY2024-25 Current Year FY2025-26
39 26

Licenses, Fees & Permits
This revenue source accounts primarily for development -related fees such as building and inspection fees. As of

September 30, 2025

, actual receipts of $

1.5 million represent a 25.1% decrease

from prior year receipts and is primarily attributable to

the Gable House development.

Overall,
revenues are projected to

exceed
budget expectations by $475,000, or 2.5%, due to increased building permit fees . This revenue source is cyclical and can fluctuate based on the timing of payments for individual projects.

Use of Money and Property
This revenue source includes investment earnings, interest income , and rental income. As of September 30, 2025

, actual receipts of $

2.8 million represent a

24.7 %
increase

from prior

year’s

receipts of $2.2

million
. This is

due to
increases in

investment

income from steady interest rates

and
rising balances in the City’s General Fund-Operating Fund. It is anticipated that this revenue source will

fall short of

budget
expectations by $133,000

1.5 %

fiscal year
-end.

Fines, Forfeitures & Penalties
This revenue source includes general court fees, traffic fines, and citation revenues. As of September 30, 2025

, actual receipts of $
257

,0
00 represent a significant increase from last year ’s

receipts of
$87

,
000. The main driver of the increase is a 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. This classification is expected to exceed

budget by about $
775

,
000

61.0 %.

Charges for Services Revenue by Department
This revenue source includes various user fees, construction -related fees (e.g. , plan checks), engineering fees,

recreation
fees, emergency transport fees , and fire inspection fees. As of September 30, 2025

, actual receipts

totaled
$5.3 million, exceeding last year’s receipts of $4.8 million for the same period.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
City Manager 765,661$ 159,736$ 20.9% 746,710$ 184,126$ 24.7% 748,210$ 1,500$ 100.2% City Clerk 16,117$

2,470$

15.3% 5,790$ 360$ 6.2% 3,950$ (1,840)$ 68.2% Finance -$

0.0% -$

0.0%
Community Development 6,220,288$

1,188,231$

19.1% 5,753,410$

1,321,645$

23.0% 5,554,470$

(198,940)$

96.5%
General Services 1,136,049$

266,375$

23.4% 1,016,700$

210,038$

20.7% 986,170$

(30,530)$

97.0%
Non-Departmental 16,491$

4,394$

26.6% 17,050$

4,542$

26.6% 17,160$

110$

100.6%
Police 448,673$

77,845$

17.4% 369,200$

71,696$

19.4% 346,740$

(22,460)$

93.9%
Fire 11,139,044$

1,174,295$

10.5% 11,620,500$

1,415,757$

12.2% 11,698,310$

77,810$

100.7%
Public Works 267,151$

0.0% 560,110$

100.0%
Community Services 5,207,992$

1,918,124$

36.8% 5,838,740$

2,076,936$

35.6% 5,960,970$

122,230$

102.1%
Total Revenues 25,217,466$ 4,791,470$

19.0% 25,928,210$ 5,285,100$

20.4% 25,876,090$ (52,120)$

99.8%
Prior Year FY2024-25 Current Year FY2025-26
40 27

The $ 494,000 increase is primarily attributed to higher receipts collected by the Community Development Department for

Planning and Zoning
F ees, an increase in Recreation-related fees
within the Community Services Department, and an increase in Emergency Transport Fees collected by the Fire Department . Overall, this classification is expected to fall short of

budget by
$52

,000
, or

0.2%,

by fiscal year
-end.

General Fund-Measure SST Fund Revenue by Classification

The General Fund -Measure SST Fund accounts for approximately 7.7% 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

financial
s.

Receipts of $ 2.1 million through the first fiscal quarter are tracking

above
prior year’s actuals by
$220,000

,
or 11.4%. The projected annual amounts

are expected to exceed
budget by $93,000 mainly
due to

an increase within the Use of Money and Property classification

from investment earnings.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Taxes 25,345,116$ 1,988,784$ 7.8% 26, 154,000$ 2,053,285$ 7.9% 26,154,000$ -$ 100.0% Use of Money and Property (177,850)$

(59,617)$

33.5% 29,606$

95,830$

323.7% 122,840$

93,234$

414.9%
Total Revenues 25,167,266$ 1,929,167$

7.7% 26,183,606$ 2,149,115$

8.2% 26,276,840$ 93,234$

100.4%
Prior Year FY2024-25 Current Year FY2025-26
41 EXPENDITURES
First Quarter Budget Review Report
42 28

Expenditures
Citywide Expenditures by Fund

As of

September 30, 2025

, across all major funds, the City realized expenditures of

70.5 million,
achieving 29.1% of

the FY25-26

citywide expenditure budget. During the same period ending September 30, 2024

, the City expended

5 5.6 million, or 29.7

%,
of the

FY24
-25 citywide
expenditure budget.

The increase from prior year is mainly due to the General Fund-Operating Fund,

Airport Fund, Transit
Fund, and Self-Insurance Fund, partially offset by decrease in General Fund -Measure SST Fund and General Fund-Assigned Fund.

The

year
-to-date

in
crease in

the

General F
und-Operating Fund of $9.7 million was mainly due to

the
planned pay and benefit adjustments , updated CalPER S rates, and the Pilot Recruitment and Retention Incentive program. The year-to-date i ncrease in the Airport Fund of

$6.0 million was
mainly due to

increased litigation cost
s,

higher operating transfers to the General Fund, and transfer

s
to Airport Capital Fund.

The
Transit Fund ’s

increase

d
expenditures are due to

approved pay and
benefit adjustments and CalPERS rates, as well as increased transfers to

the
Transit Capital Fund.

The Self-Insurance Fund showed an increase in expenditure

s
due to

higher insurance premium costs
Fund
Amended
Budget
July - September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Project %
of
Budget
General Fund-Operating Fund 287,233,766$ 88, 571,203$ 30.8% 310,938,215$ 98,243,964$ 31.6% 306,910,557$ 4,027,658$ 98.7% General Fund-Measure SST 27,495,124$

16,705,211$

60.8% 26,183,606$

10,737,226$

41.0% 25,624,979$

558,627$

97.9%
General Fund -Restricted 166,175$

32,970$

19.8% 7,471,489$

25,056$

0.3% 7,457,524$

13,965$

99.8%
General Fund-Assigned 6,435,913$

5,108,237$

79.4% 7,517,299$

1,270,212$

16.9% 7,517,299$

100.0%
Total General Fund 321,330,978$

110,417,621$

34.4% 352,110,609$

110,276,458$

31.3% 347,510,359$

4,600,250$

98.7%
AQMD Fund 277,141$

118,420$

42.7% 360,478$

203,676$

56.5% 309,696$

50,782$

85.9%
Debt Service Fund 23,107,338$

0.0% 23,625,753$

100.0%
Low Mod Fund 65,061$

14,040$

21.6% 70,338$

15,190$

21.6% 60,249$

10,089$

85.7%
Meadow Park Parking Lot District 29,064$

4,239$

14.6% 30,205$

4,444$

14.7% 30,205$

100.0%
Section 8 Housing 8,825,679$

2,141,642$

24.3% 9,590,801$

2,386,001$

24.9% 9,540,398$

50,403$

99.5%
Street Lighting Fund 1,866,272$

309,947$

16.6% 1,937,828$

308,628$

15.9% 1,933,957$

3,871$

99.8%
Traffic Safety Fund 180,000$

0.0% 70,950$

0.0% 56,230$

14,720$

79.3%
Vanpool Fund 245,871$

36,305$

14.8% 261,749$

40,309$

15.4% 269,650$

(7,901)$

103.0%
Total Nonmajor Governmental Funds 34,596,426$

2,624,593$

7.6% 35,948,102$

2,958,248$

8.2% 35,826,138$

121,964$

99.7%
Airport Fund 16,458,142$

5,332,938$

32.4% 23,981,401$

11,308,440$

47.2% 25,525,959$

(1,544,558)$

106.4%
Sanitation Fund 20,062,665$

3,744,391$

18.7% 19,869,652$

3,744,971$

18.8% 18,623,858$

1,245,794$

93.7%
Sewer Fund 5,698,593$

2,149,882$

37.7% 7,131,592$

3,070,656$

43.1% 7,338,130$

(206,538)$

102.9%
Transit Fund 40,146,302$

8,514,902$

21.2% 46,551,919$

10,698,272$

23.0% 43,251,795$

3,300,124$

92.9%
Water Fund 51,905,219$

13,691,334$ 26.4% 61,326,156$ 15,581,578$ 25.4% 56,560,799$ 4,765,357$ 92.2% Total Enterprise Funds 134,270,921$

33,433,447$

24.9% 158,860,720$

44,403,917$

28.0% 151,300,541$

7,560,179$

95.2%
Fleet Services Fund 8,621,125$

2,349,729$

27.3% 14,249,141$

3,550,290$

24.9% 13,540,863$

708,278$

95.0%
Self-Insurance Fund 23,514,888$

6,676,461$

28.4% 24,301,818$

9,254,628$

38.1% 24,114,832$

186,986$

99.2%
Total Internal Service Funds 32,136,013$

9,026,190$

28.1% 38,550,959$

12,804,918$

33.2% 37,655,695$

895,264$

97.7%
Redevelopment Agency Fund 1,401,953$

82,125$

5.9% 1,252,179$

69,500$

5.6% 1,251,579$

600$

100.0%
Total Fiduciary Funds 1,401,953$

82,125$

5.9% 1,252,179$

69,500$

5.6% 1,251,579$

600$

100.0%
Total Expenditures 523,736,291$

155,583,976.00 29.7% 586,722,569$

170,513,041$

29.1% 573,544,312$

13,178,257$

97.8%
Prior Year FY24-25 Current Year FY25-26
43 29

and a one -time, upfront payment to the City’s third-party workers’ compensation administrator for claims takeover

costs within the agreement
.

On the other hand, General Fund -Measure SST Fund expenditure s decreased year-to-date due to a reduction in transfer

s
to the Capital Improvement

Fund
and a timing change on transfers to the
Reserve Fund. General Fund-Assigned Fund also showed

a
decrease because of a change in timing of
transfer

to General Fund from the Reserve Fund
.

As shown under the “Projected Surplus/(Deficit)” column in the previous table, the following year- end results are projected for

FY25
-26:
•

The General Fund -Operating Fund is expected to operate at a projected surplus of

4.0 million, primarily driven by vacancies. As of September 30, 2025 , the General Fund -Operating Fund has

144.25

full-time equivalent (FTE) vacant positions, a n increase from 138.1 FTE vacancies as of

September 30, 2024

•

The General Fund -Measure SST Fund will operate at a projected

surplus
of

$559,000

primarily driven by savings resulting from the use of grant fund ing to address homelessness efforts in the City.
•

The Self-Insurance Fund will operate at a projected surplus of $187,000

due to

vacancy
savings and a decrease in projected expenditures related to liabilities and settlements. •

The Fleet Services Fund will operate at a

$
708,000

projected surplus, primarily driven by
vacancy savings.
•

The Enterprise Funds will operate at a projected surplus of

7.6 million overall, led by the
Water Fund, Transit Fund, and Sanitation Fund, partially offset by projected deficit s in the Airport Fund and Sewer Fund.

44 30

Citywide Expenditures by Classification

The summary table above shows

the
citywide expenditure budget by classification.

As of

September
30, 2025

, across all major funds, the City realized expenditures of

$
170.5 million, representing 29.1%
of the

FY25
-26

citywide expenditure budget. During the same period ending

September 30, 2024

, the
City expended

$
155.6

million or 29.7% of the

FY24
-25

citywide expenditure budget. The main
drivers

for this increase of

$14.9 million

include

the

planned

pay and benefit adjustments
,

updated
CalPERS rates and the Pilot Recruitment and Retention Incentive program in Salaries and Employee Benefits, higher

Depreciation and Amortization
due to

consolidation
of depreciation in Operating
Funds from Capital Funds for enterprise funds along with a

newer fleet, higher

insurance premium
costs in

Liabilities, Settlements & Insurance
, higher Water Supply Costs

,
and an increase in
Interdepartmental Charges resulting from the

reclassification of fleet
maintenance cost from
Materials, Supplies & Maintenance

classification starting FY25
-26.

Expenditures to date are expected to be higher than the percentage of the fiscal year completed due to the timing of the annual contributions to the CEPPT Section 115 Fund and Debt Service payments associated with the 2020 Lease Revenue Bonds that were used to pay down a major ity of the City’s CalPERS UAL that are paid in July and September

(included in the Non
-Departmental expenditures),
respectively.

As shown under the “Projected Surplus/(Deficit)” column in the previous table, the following year- end results are projected for

FY25
-26:

•

Salary and Empl oyee Benefits

are expected to finish the year with a projected surplus of $6.5

million
, primarily due to position vacancies.

•

Water Supply Costs

are

projected to finish the year with a surplus of

$3.9 million
.

Classification
Amended
Budget
July - September
Actuals
Budget
Expended
Amended
Budget
July - September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Project %
of Budget
Salaries and Employee Benefits 255,237,716$ 63,499,774$ 24.9% 277,127,608$ 72,560,080$ 26.2% 270,611,823$ 6,515,785$ 97.6% Salaries and Benefits Reimbursements (1,820,500)$

(584,958)$

32.1% (1,770,500)$

(311,109)$

17.6% (1,770,500)$

100.0%
Materials, Supplies & Maintenance 36,247,638$

6,781,878$

18.7% 31,075,349$

5,387,156$

17.3% 29,884,615$

1,190,734$

96.2%
Materials Reimbursements (770,142)$

(102,974)$

13.4% (975,231)$

(132,134)$

13.5% (1,046,116)$

70,885$

107.3%
Parts, Fuel & Lubricants Inventory Purchases 5,509,548$

1,044,734$

19.0% 5,637,548$

963,612$

17.1% 5,365,498$

272,050$

95.2%
Parts, Fuel & Lubricants Contra (5,509,548)$

(1,044,734)$

19.0% (5,637,548)$

(963,612)$

17.1% (5,365,498)$

(272,050)$

95.2%
Professional/Contract Services 31,570,361$

4,311,820$

13.7% 42,224,673$

4,910,558$

11.6% 42,004,084$

220,589$

99.5%
Water Supply Costs 34,785,000$

8,349,965$

24.0% 40,477,000$

9,084,834$

22.4% 36,569,600$

3,907,400$

90.3%
Training, Travel & Membership Dues 2,399,553$

644,813$

26.9% 2,664,631$

771,247$

28.9% 2,591,802$

72,829$

97.3%
Depreciation and Amortization 6,302,026$

1,360,693$

21.6% 12,926,518$

2,671,752$

20.7% 11,402,347$

1,524,171$

88.2%
Liabilities, Settlements & Insurance 19,186,676$

6,425,139$

33.5% 19,174,404$

8,723,011$

45.5% 19,055,404$

119,000$

99.4%
Utilities 7,542,553$

1,556,530$

20.6% 8,218,696$

1,726,419$

21.0% 8,446,835$

(228,139)$

102.8%
Interdepartmental Charges 41,220,631$

10,058,855$

24.4% 51,341,687$

12,366,642$

24.1% 50,448,867$

892,820$

98.3%
Debt Service 50,104,749$

15,621,873$

31.2% 51,921,257$

16,291,447$

31.4% 51,815,287$

105,970$

99.8%
Debt Service Reimbursements (21,436,950)$

(6,535,407)$

30.5% (22,760,135)$

(6,921,037)$

30.4% (23,366,790)$

606,655$

102.7%
Capital Acquisitions 42,897,703$

4,336,646$

10.1% 25,546,774$

4,792,787$

18.8% 25,455,597$

91,177$

99.6%
Asset Contra Account (40,647,864)$

(4,105,695)$

10.1% (22,093,800)$

(4,723,289)$

21.4% (22,166,861)$

73,061$

100.3%
Bad Debts and Other Losses 3,238,860$

50,376$

1.6% 3,256,000$

236$

0.0% 3,091,321$

164,679$

94.9%
Other Expenditures 53,500$

25,980$ 48.6% 98,500$ 29,026$ 29.5% 97,000$ 1,500$ 98.5% Reimbursements-Indirect Costs (9,147,553)$

(2,117,165)$

23.1% (10,741,685)$

(2,295,984)$

21.4% (9,869,867)$

(871,818)$

91.9%
Other Operating Transfers Out 66,772,333$

46,005,833$

68.9% 79,010,823$

45,581,399$

57.7% 80,289,865$

(1,279,042)$

101.6%
Total Expenditures 523,736,290$

155,583,976$

29.7% 586,722,569$

170,513,041$

29.1% 573,544,313$

13,178,256$

97.8%
Prior Year FY24-25 Current Year FY25-26
45 31

• Depreciation and Amortization is expected to finish the year with a surplus of $1.5 million . •

Other Operating Transfers Out

is projected to finish the year with a deficit of

$1.3 million
.

Collectively, a surplus of

$13.2 million
is projected across all expenditure classifications for FY25-26.

Citywide Expenditures by Department

As shown in the table a

bove
, most departments are expected to remain within budget, with savings across all funds projected

at a surplus of

$13

.2 million

by fiscal year
-end.

This is primarily the result
of departmental vacancies across the General Fund and Enterprise Funds .

Further details are
provided in the Departments

section of this document.

Citywide Vacancies by Department

The table above shows a summary of departmental vacanc ies as of

September 30, 2025

Citywide,
there are a total of

184.75 vacancies at an estimated annual cost of $26.2 million.

The estimated
annual cost shows projected cost savings if these vacancies were to remain vacant throughout the Department
Amended
Budget
July - September
Actuals
Budget
Expended
Amended
Budget
July - September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Project %
of Budget
Council 577,734$ 151,563$ 26.2% 889,517$ 216,499$ 24.3% 872,618$ 16,899$ 98.1% City Manager 8,572,556$ 1,539,015$ 18.0% 9,781,311$ 1,856,954$ 19.0% 8,735,640$ 1,045,671$ 89.3% City Attorney 3,397,091$ 713,012$ 21.0% 3,530,890$ 757,676$ 21.5% 3,307,714$ 223,176$ 93.7% City Clerk 1,664,355$ 258,890$ 15.6% 1,617,759$ 322,428$ 19.9% 1,629,757$ (11,998)$ 100.7% Civil Service 1,144,051$ 209,659$ 18.3% -$ -$ 0.0% -$ -$ 0.0% City Treasurer 483,686$ 94,518$ 19.5% 419,207$ 86,963$ 20.7% 399,861$ 19,346$ 95.4% Finance 8,148,424$ 1,536,708$ 18.9% 6,335,981$ 1,366,021$ 21.6% 6,298,741$ 37,240$ 99.4% Human Resources 3,490,054$ 626,429$ 17.9% 3,612,763$ 796,681$ 22.1% 3,710,377$ (97,614)$ 102.7% Community Development 21,170,147$ 4,688,667$ 22.1% 23,051,436$ 5,305,199$ 23.0% 22,267,106$ 784,330$ 96.6% IT 11,557,781$ 2,609,426$ 22.6% 17,817,875$ 3,145,741$ 17.7% 16,677,841$ 1,140,034$ 93.6% General Services 37,058,045$ 10,417,845$ 28.1% 50,974,724$ 17,686,456$ 34.7% 51,349,082$ (374,358)$ 100.7% Non-Departmental 89,597,649$ 50,327,830$ 56.2% 100,816,789$ 45,156,925$ 44.8% 100,845,191$ (28,402)$ 100.0% Police 101,902,049$ 26,813,125$ 26.3% 109,364,871$ 30,610,398$ 28.0% 107,272,801$ 2,092,070$ 98.1% Fire 69,295,045$ 17,396,151$ 25.1% 70,190,227$ 18,235,972$ 26.0% 71,404,205$ (1,213,978)$ 101.7% Public Works 98,788,946$ 23,814,728$ 24.1% 113,256,164$ 27,823,728$ 24.6% 107,161,205$ 6,094,959$ 94.6% Community Services 26,742,376$ 5,871,509$ 22.0% 28,511,136$ 6,447,128$ 22.6% 28,360,379$ 150,757$ 99.5% Transit 40,146,302$ 8,514,902$ 21.2% 46,551,919$ 10,698,272$ 23.0% 43,251,795$ 3,300,124$ 92.9% Total Expenditures 523,736,291$ 155,583,977$ 29.7% 586,722,569$ 170,513,041$ 29.1% 573,544,313$ 13,178,256$ 97.8% Prior Year FY24-25 Current Year FY25-26

General
Fund
Non-Major
Governmental
Funds
Enterprise
Fund
Internal
Service Fund Total
General
Fund
Non-Major
Governmental
Funds
Enterprise
Fund
Internal
Service Fund Total
City Attorney 2.00 - - - 2.00 265,047 - - - 265,047 City Clerk - - - - - - - - - - City Manager 6.00 - - - 6.00 788,527 - - - 788,527 City Treasurer - - - - - - - - - - Community Development 5.00 1.00 - - 6.00 647,883 129,976 - - 777,858 Community Services 13.00 - - - 13.00 1,313,203 - - - 1,313,203 Council - - - - - - - - - - Finance 2.00 - - 1.00 3.00 356,443 - - 92,838 449,281 Fire 11.50 - - - 11.50 309,934 - - - 309,934 General Services 9.50 - 2.50 4.50 16.50 831,819 - 187,556 502,804 1,522,179 Human Resources 2.00 - - - 2.00 179,862 - - - 179,862 IT 12.00 - - - 12.00 1,774,194 - - - 1,774,194 Police 69.00 - - - 69.00 13,987,486 - - - 13,987,486 Public Works 12.25 - 9.75 - 22.00 1,464,292 1,103,676 2,567,969 Transit - - 21.75 - 21.75 - - 2,301,751 - 2,301,751 Total 144.25 1.00 34.00 5.50 184.75 21,918,690 129,976 3,592,983 595,642 26,237,291 Vacant Full-Time Equivalents (FTEs) Estimated Annual Savings 46 32

fiscal year, which differs from projected savings in this report. When the City experiences vacancies, increased overtime costs are experienced with current staff needing to provide the same level of service to the community, which deteriorate

s
the above amounts . Additionally, the City
implemented a vacancy factor as part of the FY25 -26 budget for the first time, which effectively removed the budget for 50% of the vacancies

that existed when developing the budget
. Finally,
another reason for the difference is the enhanced

Pilot
Recruitment and Retention Program. These
factors are key in explaining why the amounts above are not fully realized when positions are vacant.

These vacancies are examined in greater detail in the

appropriate
Department

s
section of this
document.

General Fund-Operating Fund Expenditures by Department

As shown in the table above, most General Fund -Operating Fund departments are projected to remain within budgeted expectations.

T
he Fire Department expenditure budget is projected to
operate at a deficit of

$1.2 million
, primarily due to overage in

overtime

needed to maintain constant
staffing level . The Non-Departmental expenditure budget is projected to operate at

a deficit of
$218,000

,
primarily due to a

$
872,00

0 reduction in Indirect Cost Reimbursements resulting from lower salary projections , partially offset by

$
677,000

h
igher payroll-related Debt Service
Reimbursements. Overall, the

FY25
-26 General Fund -Operating Fund expenditure budget is
projected to generate

$4.
0 million

in savings, largely due to departmental vacancies.

As of September 30, 2025

, there were

144.25

FTE vacant positions in the General Fund, an increase
of 6.15

FTE from the previous year. City departments continue to face challenges in attracting qualified candidates and have numerous recruitments underway. Of these vacancies, a significant portion are in the Police Department, with

69 .0 FTE vacant positions as of

September 30, 2025

, and
efforts to fill vacancies and retain existing staff are ongoing.

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
City Council 577,734$ 151,563$ 26.2% 889,517$ 216, 499$ 24.3% 872,618$ 16,899$ 98.1% City Manager 7,449,881$

1,509,459$

20.3% 9,135,057$

1,856,954$

20.3% 8,672,453$

462,604$

94.9%
City Attorney 3,397,091$

713,012$

21.0% 3,530,890$

757,676$

21.5% 3,307,714$

223,176$

93.7%
City Clerk 1,664,355$

258,890$

15.6% 1,617,759$

322,428$

19.9% 1,629,757$

(11,998)$

100.7%
City Treasurer 483,686$

94,518$

19.5% 419,207$

86,963$

20.7% 399,861$

19,346$

95.4%
Finance 6,253,088$

1,222,523$

19.6% 6,305,776$

1,361,577$

21.6% 6,268,536$

37,240$

99.4%
Human Resources 3,244,183$

590,123$

18.2% 3,351,014$

756,372$

22.6% 3,440,727$

(89,713)$

102.7%
Civil Service 1,144,051$

209,659$

18.3% -$

0.0% -$

0.0%
Community Development 10,600,313$

2,332,439$

22.0% 11,777,640$

2,630,832$

22.3% 11,105,183$

672,457$

94.3%
CIT 9,344,118$

2,469,753$

26.4% 14,485,776$

3,018,245$

20.8% 13,333,117$

1,152,659$

92.0%
General Services 11,978,778$

2,735,179$

22.8% 12,744,182$

2,827,726$

22.2% 12,282,260$

461,922$

96.4%
Non-Departmental 12,261,799$

21,974,179$

179.2% 15,895,177$

23,997,299$

151.0% 16,112,716$

(217,539)$

101.4%
Police 101,674,799$

26,813,125$

26.4% 109,293,921$

30,610,398$

28.0% 107,216,571$

2,077,350$

98.1%
Fire 69,295,045$

17,396,151$

25.1% 70,190,227$

18,235,972$

26.0% 71,404,205$

(1,213,978)$

101.7%
Public Works 21,122,469$

4,229,120$

20.0% 22,990,936$

5,117,895$

22.3% 22,704,461$

286,475$

98.8%
Community Services 26,742,376$

5,871,509$

22.0% 28,311,136$

6,447,128$

22.8% 28,160,379$

150,757$

99.5%
Total Expenses 287,233,766$ 88,571,202$ 30.8% 310,938,215$ 98,243,964$ 31.6% 306,910,558$ 4,027,657$

98.7%
Prior Year FY2024-25 Current Year FY2025-26
47 33

General Fund-Operating Fund Expenditures by Classification

As of September 30, 2025

, the General Fund
-Operating Fund realized expenditures of

98.2 million
,
achieving 31.6% of the

FY25
-26

expenditure budget. During the same period ending

September 30,
2024

, the City

expended
$88.6

million or 30.8

%
of the

FY24
-25

expenditure budget. The main drivers
for this increase of

9.7 million were the planned pay and benefit adjustments and updated CalPERS rates in Salaries and Employee Benefits , increase in Operating Transfers Out for Capital Improvement projects,

and

increase

Fleet Vehicle Maintenance cost

in
the

Interdepartmental
Charges classification. As previously discussed in the Citywide Expenditures by Classification section, the higher per centage of expenditures to date

is expected due to the timing of the annual
contributions to the Capital Improvement Fund, Section 115 Fund and Debt Service payments.

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 211,809,082$ 54,224,260$ 25. 6% 230,998,076$ 61,657,620$ 26.7% 226,991,043$ 4,007,033$ 98.3% Salaries and Benefits Reimbursements (1,820,500)$

(584,958)$

32.1% (1,770,500)$

(311,109)$

17.6% (1,770,500)$

100.0%
Materials, Supplies & Maintenance 16,978,412$

3,134,439$

18.5% 12,059,572$

1,721,027$

14.3% 11,659,341$

400,231$

96.7%
Materials Reimbursements (370,142)$

(95,932)$

25.9% (475,231)$

(106,352)$

22.4% (485,899)$

10,668$

102.2%
Professional/Contract Services 18,470,002$

2,517,684$

13.6% 21,116,813$

3,012,115$

14.3% 21,312,478$

(195,665)$

100.9%
Training, Travel & Membership Dues 2,040,261$

573,750$

28.1% 2,358,837$

669,569$

28.4% 2,280,893$

77,944$

96.7%
Liabilities, Settlements & Insurance 221,680$

44,265$

20.0% 6,180$

4,853$

78.5% 6,180$

100.0%
Utilities 4,932,602$

1,084,248$

22.0% 5,390,146$

1,238,877$

23.0% 5,625,587$

(235,441)$

104.4%
Interdepartmental Charges 24,230,403$

5,994,141$

24.7% 28,169,695$

7,042,427$

25.0% 28,169,695$

100.0%
Debt Service 23,369,441$

14,030,290$

60.0% 23,874,385$

14,635,917$

61.3% 23,874,385$

100.0%
Debt Service Reimbursements (19,341,206)$

(5,020,407)$

26.0% (19,862,721)$

(5,331,037)$

26.8% (20,540,000)$

677,279$

103.4%
Capital Acquisitions 658,758$

110,182$

16.7% 810,675$

36,212$

4.5% 653,250$

157,425$

80.6%
Asset Contra Account -$

0.0% -$

0.0%
Bad Debts and Other Losses 1,000$

0.4% 1,000$

0.3% 1,000$

100.0%
Reimbursements-Indirect Costs (9,147,553)$

(2,117,165)$

23.1% (10,741,685)$

(2,295,984)$

21.4% (9,869,867)$

(871,818)$

91.9%
Other Operating Transfers Out 15,201,524$

14,676,401$

96.5% 19,002,973$

16,269,827$

85.6% 19,002,973$

100.0%
Total Expenses 287,233,764$ 88,571,202$ 30.8% 310,938,215$

98,243,965$ 31.6% 306,910,559$

4,027,656$

98.7%
Prior Year FY2024-25 Current Year FY2025-26
48 34

General Fund-Measure SST Fund Expenditures by
Classification

The Measure SST Fund realized expenditures of

$10.7
million or 41

.0
% of the

FY25
-26

budget.

During the same period ending September 30, 2024, expenditures totaled

$16.7 million
or 60.8% of
the FY24-25 budget. The

decrease

$6.0 million is primarily due to Other Operating Transfers Out classification,

as a result of reduction
s in

transfers to

the

Capital Improvement

Fund

$2.6 million

and transfers to Reserve Fund by

$3.8 million
. Overall, it is projected that the expenditure budget
will be fully expended at

year
-end except for

$559,000

, primarily related to
homelessness reduction
efforts in Torrance. The City has been able to identify various grant funding sources to mitigate the need to use

G
eneral

F
und

to support these activities
.

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Materials, Supplies & Maintenance 948,500$ -$ 0.0% 571,254$ -$ 0.0% -$ 571,254$ 0.0% Professional/Contract Services 876,500$

48,460$

5.5% 1,014,800$

107,286$

10.6% 1,027,425$

(12,625)$

101.2%
Other Operating Transfers Out 25,670,124$

16,656,751$

64.9% 24,597,552$

10,629,940$

43.2% 24,597,552$

100.0%
Total Expenses 27,495,124$ 16,705,211$ 60.8% 26,183,606$ 10,737,226$ 41.0% 25,624,977$ 558,629$

97.9%
Prior Year FY2024-25 Current Year FY2025-26
49 DEPARTMENTS
First Quarter Budget Review Report
50 35

Departments
City Attorney

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 fa irness, 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, working with law enforcement to uphold public safety and ensure justice.

Department Organization

51 36

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

The City Attorney’s Office expended $758,000

or 21.5% of its FY25-26 budget, as of September 30,
2025. During the same period ending September 30, 2024, expenditures totaled

$
713,000, or

21.0%

of the FY24 -25 expenditure budget. The increase in

Salaries and Employee Benefits
reflects
changes in approved pay and benefit adjustments

and

C
alPERS rates.

Overall, the department is projected to end the fiscal year with $ 223,000 in expenditure savings.

These savings are primarily attributable to

Salaries and Employee Benefits
due to

2.0 FTE
vacancies.

City Attorney Staffing Budget Summary (General Fund)

Program Modifications
Legal Services Support Staffing Enhancement
Add 1.0 FTE Legal Assistant I
Expenditure: $85,566 (General Fund)

The City Attorney’s Office is requesting the addition of

1.0 FTE Legal Assistant I to provide
administrative support

in response
to

increase
d

legal service

demands.

Rising workload levels have
created a need for additional assistance to ensure timely and efficient processing of legal matters.

This position will support all divisions by improving workflow efficiency, meeting administrative deadlines, and assisting with contract routing to facilitate quicker turnaround and more responsive service delivery.

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 2,933,694$ 667,584$ 22.8% 3, 093,230$ 730,367$ 23.6% 2,881,918$ 211,312$ 93.2% Materials, Supplies & Maintenance 54,601$

3,337$

6.1% 49,885$

6,269$

12.6% 40,627$

9,258$

81.4%
Professional/Contract Services 299,975$

23,881$

8.0% 292,122$

6,409$

2.2% 290,678$

1,444$

99.5%
Training, Travel & Membership Dues 47,775$

3,659$

7.7% 46,346$

2,304$

5.0% 45,184$

1,162$

97.5%
Utilities 5,250$

600$

11.4% -$

0.0% -$

0.0%
Interdepartmental Charges 55,796$

13,950$

25.0% 49,307$

12,327$

25.0% 49,307$

100.0%
Total Expenses 3,397,091$

713,011$

21.0% 3,530,890$

757,676$

21.5% 3,307,714$

223,176$

93.7%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Assistant City Attorney 1.00 1.00 1.00 1.00 - -$ City Attorney 1.00

1.00 1.00

1.00 - -$

Deputy City Attorney I 3.00

3.00 3.00

3.00 - -$
Deputy City Attorney II 1.00

1.00 1.00

1.00 - -$
Deputy City Attorney III 3.00

3.00 3.00

3.00 - -$
Law Office Administrator 1.00

1.00 1.00

1.00 - -$

Legal Assistant I - - - 1.00 1.00 85,566$

Legal Assistant II 4.00

4.00 4.00

4.00 - -$
Total FTE 14.00

14.00 14.00

15.00 1.00 85,566$
52 37

City Clerk

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 Records 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 minutes from City Council and Commission meetings, maintains the Municipal Code, and conducts the opening of all formal City bids.

Department Organization

53 38

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

As of September 30, 2025,

the City Clerk’s Office realized

$
435

in revenues, representing

7.5%

the
FY25-26

revenue budget . During the same period ending September 30, 2024, the City realized $2,470

15. 3%

of the

FY24
-25

revenue budget
.

The

decrease

Charges for Services

is primarily
attributable to a lower volume of appeals fees received.

Overall,
year-end revenues are projected to
finish slightly under budget by approximately

$1,8
00 .

On the expenditure side, the

department expended
$322,000

or 19.9% of its FY25-26

budget, as of
September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $259,000

,
or 15.6% of the FY24-25

expenditure budget. The increase in Salaries and Employee Benefits reflects the department operating at

full
staffing levels . The expenditure budget is
projected to end the year with

a
$12,000 deficit, driven by

estimated increase

s
in the
Professional/Contract Services classification for election-related expenses , partially offset by savings

Salaries and Employee Benefits
.

City Clerk Staffing Budget Summary (General Fund)

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Charges for Services 16,117$ 2,470$ 15.3% 5, 790$ 360$ 6.2% 3,950$ (1,840)$ 68.2% Other Revenues -$

0.0% -$

75$

0.0% 80$

80$

0.0%
Total Revenues 16,117$

2,470$

15.3% 5,790$

435$

7.5% 4,030$

(1,760)$

69.6%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 1,126,334$ 207,667$ 18.4% 1, 115,872$ 273,042$ 24.5% 1,089,888$ 25,984$ 97.7% Salaries and Benefits Reimbursements -$

0.0% -$

0.0%
Materials, Supplies & Maintenance 24,885$

121$

0.5% 15,454$

1,680$

10.9% 14,014$

1,440$

90.7%
Professional/Contract Services 440,050$

33,632$

7.6% 413,075$

30,737$

7.4% 452,703$

(39,628)$

109.6%
Training, Travel & Membership Dues 15,225$

3,007$

19.8% 19,983$

3,626$

18.1% 19,777$

206$

99.0%
Interdepartmental Charges 57,861$

14,463$

25.0% 53,375$

13,344$

25.0% 53,375$

100.0%
Total Expenses 1,664,355$

258,890$

15.6% 1,617,759$

322,429$

19.9% 1,629,757$

(11,998)$

100.7%
Revenues Less Expenditures (1,648,238)$

(256,420)$

(1,611,969)$

(321,994)$

(1,625,727)$

(13,758)$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Administrative Assistant 2.00 2.00 2.00 2.00 - -$ City Clerk 1.00 1.00

1.00 1.00

- -$
Deputy City Clerk I 3.00

3.00 3.00 3.00

- -$
Deputy City Clerk II 2.00

2.00 2.00

2.00 - -$
Deputy City Clerk III 1.00

1.00 1.00

1.00 - -$
Total FTE 9.00 9.00 9.00 9.00 - -$ 54 39

City Council

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.

Department Organization

55 40

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

As of September 30, 2025

, t
he City

Council
expended $216,000

or 24.3

%
of its

FY25
-26

budget.

During the same period ending September 30, 2024, expenditures also totaled $152,000, or

26.2 %
of the

FY24
-25 expenditure budget.

The increase in

Salaries and Employee Benefits
reflects voter-
approved compensation

changes
.

Overall, the department is projected to end the fiscal year with $ 17,000 in expenditure savings , primarily attributable

reduced costs

in
the

Training, Travel & Membership Dues

classification.

City Council Staffing Budget Summary (General Fund)

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 177,968$ 43,342$ 24.4% 423, 988$ 106,488$ 25.1% 422,525$ 1,463$ 99.7% Materials, Supplies & Maintenance 46,561$

5,185$

11.1% 40,755$

5,538$

13.6% 40,755$

100.0%
Professional/Contract Services 67,817$

2,399$

3.5% 45,550$

1,400$

3.1% 44,050$

1,500$

96.7%
Training, Travel & Membership Dues 274,876$

99,936$

36.4% 379,224$

103,073$

27.2% 365,289$

13,935$

96.3%
Utilities 10,512$

701$

6.7% -$

0.0% -$

0.0%
Total Expenses 577,734$

151,563$

26.2% 889,517$

216,499$

24.3% 872,619$

16,898$

98.1%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
City Council 7.00 7.00 7.00 7.00 - -$ Total FTE 7.00 7.00 7.00 7. 00 - -$ 56 41

City Manager

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 implements 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; manages 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 eco nomic development, community relations, and homeless services.

Department Organization

57 42

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

As of September 30, 2025, a total of

$
242,000 or 10.5

%
of FY25-26 budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$
180,000

in
revenues, representing

7.5%
of the

FY24
-25 revenue budget. The increase

in Licenses, Fees and
Permits is primarily driven by

the timing of franchise fee receipts

from
cable television companies.

Overall, year-end revenues are projected to

meet

budget
.

On the expenditure side, the department expended $1.9 million or 20.3% of its

FY25
-26 budget, as
of September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $1.5 million, or 20.3

%
of the

FY24
-25

expenditure budget. The increase in expenditures reflects the consolidation of the Civil Service Division’s budget into the City Manager’s Office budget

for FY25
-26
and changes in approved pay and benefit adjustments and C alPERS rates.

The expenditure

budget

has a projected surplus in Salaries and Employee Benefits due to 6.0 FTE vacancies , as well as in Professional/Contract Services

due to reduced costs

related to

various

legal

and contract

services
that

are not

projected

to be utilized.

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

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 1,645,918$ -$ 0.0% 1,316,120$ 30,130$ 2.3% 1,316,120$ -$ 100.0% Charges for Services 765,661$

159,736$

20.9% 746,710$

184,126$

24.7% 748,210$

1,500$

100.2%
Other Revenues -$

20,631$

0.0% -$

0.0%
Operating Transfers In -$

0.0% 232,266$

27,808$

12.0% 232,266$

100.0%
Total Revenues 2,411,579$

180,367$

7.5% 2,295,096$

242,064$

10.5% 2,296,596$

1,500$

100.1%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 5,191,494$ 1,185,177$ 22.8% 6,396,450$ 1,546,377$ 24.2% 6,149,688$ 246,762$ 96.1% Materials, Supplies & Maintenance 203,430$

91,591$

45.0% 191,026$

35,713$

18.7% 171,707$

19,319$

89.9%
Professional/Contract Services 1,634,172$

123,260$

7.5% 1,959,890$

154,325$

7.9% 1,781,272$

178,618$

90.9%
Training, Travel & Membership Dues 156,800$

49,214$

31.4% 263,974$

44,551$

16.9% 257,669$

6,305$

97.6%
Liabilities, Settlements & Insurance -$

0.0% 6,180$

4,853$

78.5% 6,180$

100.0%
Utilities 86,826$

17,464$

20.1% 77,100$

15,398$

20.0% 65,500$

11,600$

85.0%
Interdepartmental Charges 157,158$

42,040$

26.8% 222,937$

55,737$

25.0% 222,937$

100.0%
Capital Acquisitions 20,000$

713$

3.6% 17,500$

0.0% 17,500$

100.0%
Total Expenses 7,449,880$

1,509,459$

20.3% 9,135,057$

1,856,954$

20.3% 8,672,453$

462,604$

94.9%
Revenues Less Expenditures (5,038,301)$

(1,329,092)$

(6,839,961)$

(1,614,890)$

(6,375,857)$

464,104$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 741,998$ 169,862$ 22.9% -$ -$ 0.0% -$ -$ 0.0% Materials, Supplies & Maintenance 14,558$

2,281$

15.7% -$

0.0% -$

0.0%
Professional/Contract Services 348,233$

23,327$

6.7% -$

0.0% -$

0.0%
Training, Travel & Membership Dues 6,947$

2,776$

40.0% -$

0.0% -$

0.0%
Liabilities, Settlements & Insurance 6,180$

4,878$

78.9% -$

0.0% -$

0.0%
Interdepartmental Charges 26,135$

6,534$

25.0% -$

0.0% -$

0.0%
Total Expenses 1,144,051$

209,658$

18.3% -$

0.0% -$

0.0%
Prior Year FY2024-25 Current Year FY2025-26
58 43

The Civil Service Division was previously presented as a separate Department in the FY24 -25 Operating Budget Book. As part of

a realignment to better present data to the public, the Civil Service Division is now

reflected in the City Manager Operating Budget Summary.

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

As shown above,

$571,
000 in the Materials, Supplies & Maintenance classification is dedicated

to
cover costs associated with addressing homelessness in the City. Homelessness efforts in the City are currently funded

by
grants and will not require the use of Measure SST funds for the FY25 -26 Operating Budget.

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

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Materials, Supplies & Maintenance 948,500$ -$ 0.0% 571, 254$ -$ 0.0% -$ 571,254$ 0.0% Professional/Contract Services 51,500$

17,023$

33.1% -$

0.0% -$

0.0%
Total Expenses 1,000,000$

17,023$

1.7% 571,254$

0.0% -$

571,254$

0.0%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Administrative Assistant 3.25 3.00 3.00 3.00 - -$ Area G Executive Director 1.00

1.00 1.00

1.00 -

Assistant City Manager 1.00

1.00 1.00

1.00 -

Assistant to the City Manager 1.00

1.00 1.00

1.00 - 8,592$
Cable TV Announcer 1.80

Cable TV Operations Asst 1.00

- -

Cable TV Production Assis 4.50

Cable TV Production Supervisor 1.00

City Manager 1.00

1.00 1.00

1.00 - -$

Civil Service Manager 1.00

1.00 1.00

1.00 - -$

Communications Manager -

- -

1.00 1.00

247,785$

Community Television Supervisor 1.00

- - -

Content Creator -

2.00 2.00

2.00 -

Deputy City Manager 2.00

2.00 2.00

1.00 (1.00)

(287,417)$

Deputy Finance Director 0.25

0.25 0.25

0.25 - -$

Economic Development Manager 1.00

1.00 1.00

1.00 -

Human Resources Analyst 1.00

1.00 1.00

1.00 -

Human Resources Technician 2.00

2.00 2.00

2.00 -

Intern I -

- -

1.00 1.00

36,753$

Intern II 1.00

1.00 1.00

1.00 -

Management Assistant 2.00

2.00 2.00

2.00 - -$

Management Associate 4.00 5.00 5.00 5.00 - -$ Multimedia Production Coordinator -

1.00 1.00

1.00 - -$

Producer Writer, Asst 1.00

- - - - -$

Production Assistant I -

4.50 4.50

3.50 (1.00)

(20,123)$

Production Assistant II -

- -

1.00 1.00

62,186$

Senior Admin Assistant 1.00

1.00 1.00

1.00 - -$

Senior Business Manager 1.00

1.00 1.00

1.00 -

Staff Assistant 12.50 12.50 12.50 12.50 - -$

Supervising Content Creator - 1.00

1.00 1.00

- -$

Supervising Producer/Writer 1.00

Total FTE 47.30

45.25 45.25

46.25 1.00 47,776$
59 44

Program Modifications
Communications Division Leadership Realignment
Delete 1.0 FTE Deputy City Manager and Add 1.0 FTE Communications Manager

Expenditure: $(39,632) (General Fund)

The City Manager’s Office is requesting the conversion of 1.0 FTE

Deputy City Manager to 1.0 FTE
Communications Manager to restore the Communications Manager position as aligned with the 21st Century PIO (Public Information Officer) model. This role will lead the Communications Division and develop Citywide projects related to strategic messaging, enhancing transparency, and promoting civic initiatives. As well, it will focus supporting the City’s priority towards effective public communication and strength

ening community relationships.

Production Staffing Classification Adjustment

Delete 1.0 FTE Production Assistant I and Add 1.0 FTE Production Assistant II Expenditure: $42,063 (General Fund)

The City Manager’s Office Communications Division is requesting the conversion of 1.0 FTE Production Assistant I to 1.0 FTE Production Assistant II. This conversion includes the elimination of the first three steps of

the
Production Assistant I classification to improve recruitment efforts and create

s
a new full -time Production Assistant II position, providing a clearer promotional pathway and strengthening retention

within the

City’s workforce.

Civil Service Division Summer

Intern Program Enhancement

Add 1.0 FTE Intern I
Expenditure: $36,753

(General Fund)

The City Manager’s Office Civil Service Division is requesting the addition of 1.0 FTE Intern I to establish a pooled FTE for the Summer Intern program , which makes the program paid opportunities. The Summer Intern program is a proven talent pipeline that provides students and recent graduates with hands-on experience, skill development, career exploration, and professional connections. The program has led to permanent hires across departments and feeds in the City’s Management Aid Program, supporting long

-
term workforce goals.

60 45

Assistant to the City Manager Benefit Adjustment
Expenditure: $8,592

(General Fund)

The City Manager’s Office Communications Division is requesting to

update the Car Allowance
Category for the Assistant to the City Manager position from

Category 3 to Category 1, consistent with
the Communications Manager position recommended to be added to the budget.

Decrease

the

General Fund Expenditure Budget by $

(
65,000

)

The City Manager’s Office is requesting a decrease in the Civil Service Division’s General Fund operating budget

$65,000, related to discipline matters.

61 46

City Treasurer

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.

Department Organization

62 47

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

As of September 30, 2025

, t
he City

Treasurer’s
Office expended

$
87,000

,
representing 20.7

%
of its
FY25-26

budget. During the same period ending September 30, 2024, expenditures totaled

$
95,000

,
or 19.5

%
of the

FY24
-25 expenditure budget. The decrease in the Professional/Contract Services classification

primarily
reflects

the

completion of a one
-time treasury audit in FY25.

Overall, the department is projected to end the fiscal year with approximately $19,000 in expenditure savings,

primarily attributable to the

Salaries and Employee Benefits

classification
.

City Treasurer Staffing Budget Summary (General Fund)

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 334,159$ 78,204$ 23.4% 350, 296$ 84,174$ 24.0% 333,829$ 16,467$ 95.3% Materials, Supplies & Maintenance 3,045$

125$

4.1% 2,910$

24$

0.8% 1,750$

1,160$

60.1%
Professional/Contract Services 101,010$

15,219$

15.1% 46,609$

0.0% 45,941$

668$

98.6%
Training, Travel & Membership Dues 40,530$

(140)$

-0.3% 13,854$

1,379$

10.0% 12,803$

1,051$

92.4%
Utilities 500$

0.0% -$

0.0%
Interdepartmental Charges 4,442$

1,110$

25.0% 5,538$

1,386$

25.0% 5,538$

100.0%
Total Expenses 483,686$

94,518$

19.5% 419,207$

86,963$

20.7% 399,861$

19,346$

95.4%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
City Treasurer 1.00 1.00 1.00 1.00 - -$ Deputy City Treasurer 1.00

1.00 1.00 1.00

- -$
Total FTE 2.00 2.00 2.00 2.00 - -$ 63 48

Community Development

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. Th ey 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.

Department Organization

64 49

CDD Operating Budget Summary (General Fund-Operating Fund)

As of September 30, 2025, a total of

2.4 million or 21.7

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

2.8 million in
revenues, representing

25.6 %
of the FY24-25

revenue budget. The decrease in

Licenses, Fees and
Permits is primarily attributable to

a reduction in the number of

building permits issued
in the
current fiscal year compared to

the prior year
. This decline is partially offset by

an
increase in
Charges for Services, driven by growth in plan check fees. Overall, year-end revenues are

projected
to fall short of

budget by approximately

$
218,000

On the expenditure side, the department expended $2.6 million or 22.3% of its

FY25
-26 budget, as
of September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $2.3 million, or 22.0% of the

FY24
-25

expenditure budget. Expenditures remain generally consistent relative to the expenditure budget,

with
the Salaries and Employee Benefits classification
increasing by about $272,000, due to approved pay rate and benefit adjustments and CalPERS rate increase. Overall, total expenditure is projected to generate surplus of $672,000 by year

-
end due to
projected salary savings from 5.0 FTE vacancies.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 4,809,133$ 1,636,882$ 34.0% 5, 411,000$ 1,102,383$ 20.4% 5,380,750$ (30,250)$ 99.4% Fines, Forfeitures and Penalties 25,000$

1,812$

7.2% 14,500$

7,180$

49.5% 28,720$

14,220$

198.1%
Use of Money and Property 22,752$

6,475$

28.5% 22,000$

4,725$

21.5% 18,900$

(3,100)$

85.9%
Charges for Services 6,220,288$

1,188,231$

19.1% 5,753,410$

1,321,645$

23.0% 5,554,470$

(198,940)$

96.5%
Other Revenues 3,308$

156$

4.7% -$

0.0% -$

0.0%
Total Revenues 11,080,481$ 2,833,556$

25.6% 11,200,910$ 2,435,933$

21.7% 10,982,840$ (218,070)$

98.1%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 9,431,801$ 2,159,534$ 22.9% 10, 524,469$ 2,431,836$ 23.1% 9,898,772$ 625,697$ 94.1% Salaries and Benefits Reimbursements (249,000)$

(40,855)$

16.4% (249,000)$

(46,664)$

18.7% (249,000)$

100.0%
Materials, Supplies & Maintenance 235,142$

22,415$

9.5% 67,080$

15,885$

23.7% 56,463$

10,617$

84.2%
Professional/Contract Services 488,248$

4,914$

1.0% 665,231$

36,209$

5.4% 634,453$

30,778$

95.4%
Training, Travel & Membership Dues 45,776$

4,417$

9.6% 30,575$

9,956$

32.6% 28,210$

2,365$

92.3%
Liabilities, Settlements & Insurance 37,000$

31,800$

85.9% -$

0.0% -$

0.0%
Utilities 28,097$

5,158$

18.4% 16,300$

2,859$

17.5% 13,300$

3,000$

81.6%
Interdepartmental Charges 583,249$

145,056$

24.9% 722,985$

180,751$

25.0% 722,985$

100.0%
Total Expenses 10,600,313$ 2,332,439$

22.0% 11,777,640$ 2,630,832$

22.3% 11,105,183$ 672,457$

94.3%
Revenues Less Expenditures 480,168$

501,117$

(576,730)$

(194,899)$

(122,343)$

454,387$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
65 50

CDD Operating Budget Summary (Air Quality Management District Fund)

As of September 30, 2025, a total of

$
52,000

or 24.6

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$
53,000

in revenues,
representing

25.4 %

of the

FY24
-25

revenue budget
.

Overall,

year
-end revenues are

projected

to
fall
short of

budget

by approximately

$
1,200

On the expenditure side, the department expended $204,000

or 56.5% of its

FY25
-26

budget, as of
September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $118,000

or 42.7

%
of the

FY24
-25

expenditure budget. The increase in expenditures is primarily due to increase

s
in Other Operating Transfers Out by $175,000

to the AQMD Capital Fund for capital
investments in alternative fueling fleet and infrastructure. Expenditure

are
projected to generate

a
surplus of

1 ,000

primarily

in Salaries and Employee Benefits due to lower actuals to date

and
Materials, Supplies & Maintenance due to

the decrease in participation in the Rideshare Incentive Program.

CDD Operating Budget Summary (Low Mod Fund)

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 11,906$ 4,809$ 40.4% 16, 134$ 2,280$ 14.1% 14,730$ (1,404)$ 91.3% Intergovernmental 196,390$

48,129$

24.5% 195,000$

49,744$

25.5% 195,210$

210$

100.1%
Total Revenues 208,296$

52,938$

25.4% 211,134$

52,024$

24.6% 209,940$

(1,194)$

99.4%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 123,639$ 16,460$ 13.3% 131, 837$ 23,966$ 18.2% 94,776$ 37,061$ 71.9% Materials, Supplies & Maintenance 46,000$

3,758$

8.2% 44,620$

4,710$

10.6% 31,620$

13,000$

70.9%
Professional/Contract Services 8,300$

0.0% 8,051$

0.0% 7,800$

251$

96.9%
Training, Travel & Membership Dues 1,000$

0.0% 970$

0.0% 500$

470$

51.5%
Interdepartmental Charges 98,202$

98,202$

100.0% -$

0.0% -$

0.0%
Other Operating Transfers Out -$

0.0% 175,000$

175,000$

100.0% 175,000$

100.0%
Total Expenses 277,141$

118,420$

42.7% 360,478$

203,676$

56.5% 309,696$

50,782$

85.9%
Revenues Less Expenditures (68,845)$

(65,482)$

(149,344)$

(151,652)$

(99,756)$

49,588$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 40,450$ 21,967$ 54.3% -$ -$ 0.0% -$ -$ 0.0% Total Revenues 40,450$

21,967$

54.3% -$

0.0% -$

0.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 61,061$ 13,290$ 21.8% 62, 578$ 15,190$ 24.3% 60,249$ 2,329$ 96.3% Materials, Supplies & Maintenance 4,000$

750$

18.8% 7,760$

0.0% -$

7,760$

0.0%
Total Expenses 65,061$

14,040$

21.6% 70,338$

15,190$

21.6% 60,249$

10,089$

85.7%
Revenues Less Expenditures (24,611)$

7,927$

(70,338)$

(15,190)$

(60,249)$

10,089$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
66 51

On the revenue side, the fund is projected to generate $0 revenue in FY25 -26 . This decrease from FY24-25

is due to

no projected

interest
income on Loans from the Low Mod Fund to Redevelopment
Agency (RDA) Fund and its

repayment schedule.

On the expenditure side, the

fund
expended $15,000 or 21.6% of its FY25-26

budget, as of
September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $14,000

,
or 21.6% of the FY24-25

expenditure budget. The projected surplus in the

Materials,
Supplies & Maintenance projection reflects that the housing subsidy is projected to not occur in the current fiscal year.

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

On the revenue side, the fund

recognized
$0

revenue in FY25

-
26, as of September 30, 2025, compared
to $19,000

as of

September 30, 2024

, and the decrease is primarily due to timing of revenue collection. The revenue is projected to

end at budget by year
-end.

On the expenditure side, the

fund
expended $4,400

or 14.7

%
of its

FY25
-26

budget, as of

September
30, 2025. During the same period ending September 30, 2024, expenditures totaled

$
4,200

,
or 14.6%
of the

FY24
-25 expenditure budget. Projections for the Professional/Contract Services and Utilities classifications remain consistent with budgeted levels, and the fund is

expected
to maintain
a

year
-end surplus of $11,000.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 40,064$ 19,162$ 47.8% 41, 205$ -$ 0.0% 41,205$ -$ 100.0% Total Revenues 40,064$

19,162$

47.8% 41,205$

0.0% 41,205$

100.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Professional/Contract Services 28,564$ 4,124$ 14.4% 29, 705$ 4,124$ 13.9% 29,705$ -$ 100.0% Utilities 500$

115$

23.0% 500$

320$

64.0% 500$

100.0%
Total Expenses 29,064$

4,239$

14.6% 30,205$

4,444$

14.7% 30,205$

100.0%
Revenues Less Expenditures 11,000$

14,923$

11,000$

(4,444)$

11,000$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
67 52

CDD Operating Budget Summary (Section 8 Housing Fund)

As of September 30, 2025, a total of

$2.3 million
or 23.8

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$2.
2 million in
revenues, representing

24 .1%
of the

FY24
-25

revenue budget . Overall, year -end revenues are
projected to

fall short of

budget by approximately

$
99,000

, primarily due to

projected
slowdown in
Housing Assistant Program (HAP) reimbursement as

it
is expected to reach the limit in order to
maintain required

funding

reserve
level.

On the expenditure side, the department expended $2.4 million or 24.9% of its

FY25
-26 budget, as
of September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $2.1 million, or 24.3% of the

FY24
-25 expenditure budget. Expenditure increased primarily in Materials, Supplies and Maintenance classification, as the volume of

rental assistant payments
increased compared to the

prior year to date
. The Professional/Contract Services projection has
decreased due to lower software-related

costs,

partially

offset by

rising costs in

Interdepartmental
Charges related to

Indirect Cost
allocations.

Overall,
the fund is

expected
to generate a year-end
surplus of

$
46,000.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 5,500$ 8,312$ 151.1% 25, 009$ 5,977$ 23.9% 26,320$ 1,311$ 105.2% Intergovernmental 8,928,000$

2,141,301$

24.0% 9,644,000$

2,300,508$

23.9% 9,544,000$

(100,000)$

99.0%
Other Revenues 16,000$

6,380$

39.9% 16,300$

2,322$

14.2% 16,300$

100.0%
Total Revenues 8,949,500$

2,155,993$

24.1% 9,685,309$

2,308,807$

23.8% 9,586,620$

(98,689)$

99.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 648,922$ 155,255$ 23.9% 707, 169$ 194,253$ 27.5% 696,558$ 10,611$ 98.5% Materials, Supplies & Maintenance 7,931,986$

1,921,651$

24.2% 8,636,821$

2,120,075$

24.5% 8,625,648$

11,173$

99.9%
Professional/Contract Services 79,590$

27,341$

34.4% 75,815$

28,285$

37.3% 42,204$

33,611$

55.7%
Training, Travel & Membership Dues 5,132$

0.0% 4,982$

378$

7.6% 2,788$

2,194$

56.0%
Interdepartmental Charges 160,049$

37,395$

23.4% 166,014$

43,009$

25.9% 173,200$

(7,186)$

104.3%
Total Expenses 8,825,679$

2,141,642$

24.3% 9,590,801$

2,386,000$

24.9% 9,540,398$

50,403$

99.5%
Revenues Less Expenditures 123,821$

14,351$

94,508$

(77,193)$

46,222$

(48,286)$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
68 53

CDD Operating Budget Summary (Redevelopment Agency Fund)

As of September 30, 2025, a total of

$
1,300

of FY25-26

budgeted revenues have been collected.

During the same period ending September 30, 2024, the City realized

$
4,000

in revenues. The fund is
expected to fully utilize the revenue operating budget,

as it is balanced for the fiscal year.

On the expenditure side, the department expended

$
70 ,0
00 or 5.6% of its

FY25
-26

budget, as of
September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $82,000

,
or 5.9% of the FY24-25 expenditure budget. The fund is expected to fully utilize the expenditure operating budget, with only a marginal surplus.

CDD Operating Budget Summary (Vanpool Fund)

As of September 30, 2025, a total of

$
40,000

or 15.4

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$
36,000

in revenues,
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Taxes 3,790,000$ -$ 0.0% 4,144,678$ -$ 0.0% 4,144,678$ -$ 100.0% Use of Money and Property 8,500$

4,007$

47.1% 5,040$

1,323$

26.3% 5,040$

100.0%
Other Financing Sources 189,768$

0.0% 189,768$

100.0%
Total Revenues 3,988,268$

4,007$

0.1% 4,339,486$

1,323$

0.0% 4,339,486$

100.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Professional/Contract Services 13,500$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Debt Service 2,878,453$

1,584,625$

55.1% 2,817,179$

1,647,000$

58.5% 2,816,579$

600$

100.0%
Debt Service Reimbursements (1,515,000)$

(1,515,000)$

100.0% (1,590,000)$

(1,590,000)$

100.0% (1,590,000)$

100.0%
Other Expenditures 25,000$

12,500$

50.0% 25,000$

12,500$

50.0% 25,000$

100.0%
Total Expenses 1,401,953$

82,125$

5.9% 1,252,179$

69,500$

5.6% 1,251,579$

600$

100.0%
Revenues Less Expenditures 2,586,315$

(78,118)$

3,087,307$

(68,177)$

3,087,907$

600$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 965$ (58)$ -6.0% ( 157)$ (27)$ 17.2% (249)$ (92)$ 158.7% Intergovernmental 35,000$

0.0% 50,000$

100.0%
Charges for Services 30,000$

417$

1.4% 32,000$

833$

2.6% 32,000$

100.0%
Operating Transfers In 179,906$

35,914$

20.0% 179,906$

39,482$

21.9% 187,899$

7,993$

104.4%
Total Revenues 245,871$

36,273$

14.8% 261,749$

40,288$

15.4% 269,650$

7,901$

103.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 111,092$ 28,976$ 26.1% 123, 367$ 34,981$ 28.4% 138,966$ (15,599)$ 112.6% Materials, Supplies & Maintenance 132,930$

7,049$

5.3% 136,587$

5,049$

3.7% 128,889$

7,698$

94.4%
Professional/Contract Services 1,323$

280$

21.2% 1,284$

280$

21.8% 1,284$

100.0%
Training, Travel & Membership Dues 526$

0.0% 511$

100.0%
Total Expenses 245,871$

36,305$

14.8% 261,749$

40,310$

15.4% 269,650$

(7,901)$

103.0%
Revenues Less Expenditures -$

(32)$

(22)$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
69 54

representing 14.8 % of the FY24-25 revenue budget . Overall, year -end revenues are projected to exceed budget by approximately

$
8,000

On the expenditure side, the department expended

$
40,000 or 15.4

%
of its

FY25
-26

budget, as of
September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $36,000

or 14.8% of the

FY24
-25

expenditure budget. The Salaries and Employee Benefits classification projection reflects increase in benefits costs related to personnel; however, these costs are partially offset by projected savings in the

Materials, Supplies & Maintenance

classification
and
Operating Transfers In,

allowing the fund to remain balanced.

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

Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Administrative Analyst 1.00 1.00 1.00 1.00 - -$ Administrative Assistant 3.00

3.00 3.00

3.00 - -$
Assistant Engineer 5.00

5.00 5.00 5.00 - -$ Associate Engineer 1.00

1.00 1.00

1.00 - -$
Bldg Inspection Supervisor 1.00

1.00 1.00

1.00 - -$
Building Official 1.00 1.00 1.00 1.00 - -$ Code Enforcement Officer 3.00

3.00 3.00

3.00 - -$
Code Enforcement Officer, Sr 1.00

1.00 1.00

1.00 - -$
Community Development Director 1.00

1.00 1.00

1.00 - -$
Electrical Inspector, Sr 1.00

1.00 1.00

1.00 - -$
Engineering Services Manager 1.00

1.00 1.00

1.00 - -$
Engineering Technician I 3.00

3.00 3.00

3.00 - -$
Engineering Technician III 1.00

1.00 1.00

1.00 - -$
Environmental Qual Officer 3.00

3.00 3.00

3.00 - -$
Environmental Qual Officer, Sr 1.00

1.00 1.00

1.00 - -$
Housing Specialist 4.00

4.00 4.00 4.00

- -$

Housing Supervisor 1.00 1.00

1.00 1.00 - -$ Inspector, Building 2.00

2.00 2.00

2.00 - -$

Inspector, Mech & Plumbing, Sr 2.00

2.00 2.00 2.00

- -$
Inspector, Public Works 3.00

3.00 3.00 3.00 - -$ Neighborhood Services Manager 1.00

1.00 1.00

1.00 - -$
Permit Center Supervisor 1.00 1.00 1.00 1.00 - -$ Permit Technician I 4.00

5.00 5.00

5.00 - -$
Permit Technician II 3.00

3.00 3.00

3.00 - -$
Planning Assistant 4.00

4.00 4.00

4.00 - -$
Planning Associate 8.00

8.00 8.00

7.00 (1.00)

(145,230)$

Planning Manager 2.00

2.00 2.00

2.00 - -$
Plans Examiner 4.00

5.00 5.00

5.00 - -$

Senior Building Inspector 3.00

4.00 4.00

4.00 - -$
Senior Business Manager 1.00

1.00 1.00

1.00 - -$

Senior Planner 1.00

1.00 1.00

2.00 1.00

159,753$
Supervising Admin Assistant 1.00

1.00 1.00

1.00 - -$
Supervising Plans Examiner 1.00

1.00 1.00

1.00 - -$
Systems Analyst 1.00

1.00 1.00 1.00

- -$
Total FTE 74.00

77.00 77.00

77.00 - 14,523$
70 55

Program Modifications
Planning Division Staffing Realignment
Delete 1.0 FTE Planning Associate and Add 1.0 FTE Senior Planner Expenditure: $14,523 (General Fund)

The Community Development Department is requesting the conversion of 1.0 FTE Planning Associate to 1.0 FTE Senior Planner. This conversion will align the job title with the

responsibilities
of the position as well as improve recruitment by attracting more experienced candidates who are able to take on complex planning projects and provide expert support to the Department. The proposed position would support ongoing projects i n Development Review and Long -Range Planning program.

71 56

Community Services

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 create positive experiences in safe places that provide a connected Torrance community centered around the specialized areas of Cultural Arts, Library, Parks, and Recreation. As a professional organization, each of our dedicated team members strives to provide resources to our community with integrity, honesty, and respect for all users. In all our services, we foster lifelong learning and personal development to strengthen mind and body. In addition, we embrace the vision that "Parks Make Life Better" for everyone.

Department Organization

72 57

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

As of September 30, 2025, a total of

$2.3
million or 34.1

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$2.1
million in
revenues, representing 35.1

%
of the

FY24
-25

revenue budget . The Licenses, Fees , and Permits

classification is projected to exceed budget by

$130,000

, as activity

for animal licenses and permits

is anticipated to

be
more closely

aligned
with last

year’s levels
. The increase in

Charges for Services

is due to increases in recreation services, farmers’ market activity, and contract class fees.

Overall,
year-end revenues are

projected

to exceed

budget

by approximately

$
343,000

On the expenditure side, the

department expended

6.5 million or 22.8% of its FY25-26 budget, as
of September 30, 2025. During the same period ending September 30, 2024,

expenditures totaled

$5.9 million, or 22.0% of the

FY24
-25

expenditure budget. The increase in Salaries and Employee Benefits by $484,000 is primarily due to approved pay

increase
and benefit adjustments.

The
surplus
in Salaries and Employee Benefits of $402,000 is due to

13.0 FTE vacancies
, specifically in Library
Services and Parks Services. The Department has several proposed FTE modifications to address these vacancies and

improve recruitment
efforts.

The $277,000

decrease in

Materials, Supplies

& Maintenance is attributable to the

reclassification

of vehicle -related expenditures to Interdepartmental Charges. Department expenditures are projected

to end the year

with a

$151,000 surplus
.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 215,000$ 32,090$ 14. 9% 120,000$ 18,140$ 15.1% 250,000$ 130,000$ 208.3% Use of Money and Property 623,765$

158,679$

25.4% 671,400$

163,696$

24.4% 742,610$

71,210$

110.6%
Charges for Services 5,207,992$

1,918,124$

36.8% 5,838,740$

2,076,936$

35.6% 5,960,970$

122,230$

102.1%
Other Revenues -$

13,093$

0.0% -$

2,415$

0.0% 19,990$

19,990$

0.0%
Total Revenues 6,046,757$

2,121,986$

35.1% 6,630,140$

2,261,187$

34.1% 6,973,570$

343,430$

105.2%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 17,384,134$ 4,104,297$ 23. 6% 18,526,530$ 4,588,836$ 24.8% 18,124,773$ 401,757$ 97.8% Salaries and Benefits Reimbursements -$

(500)$

0.0% -$

0.0%
Materials, Supplies & Maintenance 4,144,371$

728,397$

17.6% 3,197,268$

451,710$

14.1% 3,173,379$

23,889$

99.3%
Materials Reimbursements (138,334)$

(13,161)$

9.5% (138,334)$

(13,006)$

9.4% (138,334)$

100.0%
Professional/Contract Services 1,943,584$

200,772$

10.3% 2,306,469$

304,690$

13.2% 2,288,171$

18,298$

99.2%
Training, Travel & Membership Dues 72,459$

8,704$

12.0% 91,721$

9,083$

9.9% 66,008$

25,713$

72.0%
Liabilities, Settlements & Insurance 28,500$

6,750$

23.7% -$

0.0% -$

0.0%
Utilities 1,792,121$

469,850$

26.2% 2,069,700$

559,562$

27.0% 2,388,600$

(318,900)$

115.4%
Interdepartmental Charges 1,442,041$

365,712$

25.4% 2,185,032$

546,253$

25.0% 2,185,032$

100.0%
Capital Acquisitions 73,500$

688$

0.9% 72,750$

0.0% 72,750$

100.0%
Total Expenses 26,742,376$

5,871,509$

22.0% 28,311,136$

6,447,128$

22.8% 28,160,379$

150,757$

99.5%
Revenues Less Expenditures (20,695,619)$

(3,749,523)$

(21,680,996)$ (4,185,941)$

(21,186,809)$ 494,187$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
73 58

Community Services Operating Budget Summary (General Fund-Measure SST Fund)

As of September 30, 2025,

none
of the $200,000 budget for Professional/Contract Services has been expended. At this time, the City anticipates that the full budget will be utilized

for
encampment
prevention overnight security guard services by the end of the fiscal year, resulting in no projected year-end variance.

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Professional/Contract Services -$ -$ 0.0% 200,000$ -$ 0.0% 200,000$ -$ 100.0% Total Expenses -$

0.0% 200,000$

100.0%
Prior Year FY2024-25 Current Year FY2025-26
74 59

Community Services Staffing Budget Summary (General Fund)

Program Modifications
Recreation and Cultural Services Program Staffing Enhancements Add 0.98 FTE Program Leader, Add 1.45 FTE Program Specialist, and Add 0.5 FTE Senior Program Specialist
Expenditure: $133,472 (General Fund)

The Community Services Department is requesting the addition of 0.98 FTE Program Leader, 1.45 FTE Program Specialist, and 0.5 FTE Senior Program Specialist within the Administration, Recreation, and Cultural

Services
Division. The proposed increase in Program Leader staffing will align part-time support with the current operational needs of the Torrance Certified Farmers’ Market, Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Administrative Analyst 1.00 1.00 1.00 1.00 - -$ Administrative Assistant 5.00

5.00 5.00

5.00 - -$
Aquatics Instructor 1.68

1.68 1.68

1.68 - -$
Assistant City Librarian 1.00

1.00 1.00

2.00 1.00

205,184$
City Librarian 1.00

1.00 1.00

1.00 - -$

Community Services Director 1.00

1.00 1.00

1.00 - -$

Cultural Services Manager 1.00

1.00 1.00

1.00 - -$

Farmers' Market Manager 1.00

1.00 1.00

1.00 - -$

Home Impr Prog Coordinator 1.00

1.00 1.00

1.00 - -$

Home Impr Prog Supervisor 1.00

1.00 1.00

1.00 - -$

Instructor I 1.00

1.00 1.00

1.00 - -$

Instructor II 1.43

1.43 1.43

1.53 0.10

7,113$
Lead Maintenance Worker 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 - -$

Library Page 10.50 10.50 10.50 10.50 - -$

Library Technician 13.50 13.50 13.50 13.50 - -$

Lifeguard 5.77

5.77 5.77

5.77 - -$

Maintenance Worker 21.00 21.00 21.00 21.00 - -$

Nature Center Mgr/Naturalist 1.00

1.00 1.00

1.00 - -$
Park Services Supervisor 3.00

3.00 3.00

3.00 - -$

Parks Services Manager 1.00 1.00 1.00 1.00 - -$ Pest Control Technician 1.00

1.00 1.00

1.00 - -$

Pool Manager, Assistant 1.06

1.06 1.06

1.06 - -$

Program Coordinator 4.00

4.00 4.00

3.00 (1.00)

(78,206)$

Program Leader 26.94 26.94 26.94 27.92 0.98

39,198$

Program Specialist 20.77 20.77 20.77 22.22 1.45

65,653$

Ranger Supervisor 1.00

1.00 1.00

1.00 - -$

Recreation Services Manager 1.00

1.00 1.00

1.00 - -$

Recreation Supervisor 7.00

7.00 7.00

7.00 - -$

Recreation Supvsr, Sr 4.00

4.00 4.00

4.00 - -$

Senior Business Manager 1.00

1.00 1.00

1.00 - -$
Senior Librarian 6.00

6.00 6.00

5.00 (1.00)

(125,908)$

Senior Library Page 5.50

5.50 5.50

5.50 - -$

Senior Library Technician 8.00

8.00 8.00

8.00 - -$

Senior Program Specialist 13.21 13.21 13.21 13.71 0.50

28,621$

Staff Assistant 0.80

0.80 0.80

0.80 - -$

Supervising Admin Assistant 1.00

1.00 1.00

1.00 - -$

Total FTE 205.15

205.15

207.18

2.03 141,655$
75 60

ensure the continuation of the People Actively Learning and Sharing ( PALS) pickleball clinics — a specialized recreation program —

for an additional year, and support expanded early childhood education class offerings in response to increased community demand.

Finally, the additional 0.5 FTE Senior Program Specialist will provide dedicated staffing for the community garden plots at Columbia Park and Lago Seco Park and manage the special event permitting process. This position will also serve as the primary liais on for related activities and responsibilities previously overseen by the City Manager’s Office.

Civic Chorale Staffing Adjustment
Add 0.10 FTE Instructor II
Expenditure: $7,113 (General Fund)

The Community Services Department is requesting the addition of 0.10 FTE Instructor II to align part- time staffing with the current program needs of the Torrance Civic Chorale.

Library Leadership Staffing Realignment
Delete 1.0 FTE Program Coordinator, Delete 1.0 FTE Senior Librarian, and Add 1.0 FTE Assistant City Librarian
Expenditure: $1,070 (General Fund)

The Community Services Department is requesting the deletion of 1.0 FTE Program Coordinator and

1.0 FTE Senior Librarian, and the addition of 1.0 FTE Assistant City Librarian. In February 2024, an Assistant City Librarian position became vacant and was subsequently converted to a Senior Librarian position as part of the FY24

-
25 First Quarter Program Modifications. Since then, the Library has operated with only one Assistant City Librarian, who has absorbed responsibility for supervising Senior Librarians an d overseeing daily operations related to facilities and technology. During this time, the City Librarian has taken on additional duties involving programming, outreach, and administrative functions, while the remaining Assistant City Librarian has managed

operations at
both the Katy Geissert and Henderson Libraries.

the leadership team. Reinstating a second Assistant City Librarian— focused on technical processing, circulation, technology, and operations —

would restore balance to the management structure and
strengthen the Library’s leadership capacity. This adjustment would also improve recruitment prospects for key leadership roles and enhance overall service delivery to the community.

Contract Security Guard at Main Library
Increase General Fund Expenditure Budget by

$34,000

The Community Services Department is requesting to increase the operating expenditure budget by $34,000 to fund an additional security guard to provide enhanced patrol coverage

at
Katy Geissert
Civic Center Library

with rotation to Cultural Arts Center.

77 62

Finance

Mission Statement

The mission of the Finance Department is to safeguard the City’s financial integrity, protect and manage its assets, and provide transparent, accurate, and timely financial services. We are committed to supporting the Torrance City Council, City departments, and broader community with sound fiscal guidance that promotes accountability, efficiency, and long-term sustainability.

Functional Responsibilities

The Finance Department ensures responsible stewardship of City resources by managing financial administration, budgeting, purchasing, accounting, and auditing functions. Key responsibilities include:
• Preparing and administering the City’s annual operating and capital improvement budgets in collaboration with the City Manager.
• Providing timely and accurate financial reporting, including the annual audited financial statements, in compliance with Governmental Accounting Standards Board requireme nts. • Administering revenue collection, business licensing, and billing functions to ensure efficient and equitable collection of monies owed to the City.
• Managing procurement services to support cost-effective , transparent purchasing practices. • Overseeing risk management programs to minimize costs related to liability, workers’ compensation, and insurance exposure.
• Advising the City Council and City Manager on financial strategies, fiscal trends, and resource allocation to support informed policy and operational decisions.

Department Organization

78 63

Finance Operating Budget Summary (General Fund-Operating Fund)

As of September 30, 2025, the Finance Department expended $1.4 million, representing 21.6% of its FY25-26 budget. During the same period ending September 30, 2024, expenditures totaled

$1.2
million, or

19.6 % of the FY24 -25 expenditure budget. The increase in Salaries and Employee Benefits

reflects approved pay and benefit adjustments

and updated

C
alPERS rates.

The decrease in the

Prof
essional/Contract Services

classification is due to the transfer of software
contracts to the IT Department and the transfer of parking ticket enforcement responsibilities to the Police Department. Lower expenditures in the

Training, Travel & Membership Dues
classification
reflect normal fluctuations in the timing of

payments for

scheduled
trainings and membership
renewals.

Overall, the department is projected to end the fiscal year with

$
37,000

in expenditure savings ,
primarily attributable to

Salaries and Employee Benefits

due to 2.0 FTE vacancies.

Finance Operating Budget Summary (Self-Insurance Fund)

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 4,550,193$ 1,020,295$ 22.4% 5,206,311$ 1,274,806$ 24.5% 5,181,483$ 24,828$ 99.5% Salaries and Benefits Reimbursements (19,000)$

(9,500)$

50.0% (19,000)$

(9,500)$

50.0% (19,000)$

100.0%
Materials, Supplies & Maintenance 70,512$

4,446$

6.3% 80,047$

6,155$

7.7% 71,372$

8,675$

89.2%
Materials Reimbursements -$

(12)$

0.0% -$

(246)$

0.0% (250)$

250$

0.0%
Professional/Contract Services 1,412,177$

151,173$

10.7% 772,019$

40,107$

5.2% 768,589$

3,430$

99.6%
Training, Travel & Membership Dues 42,608$

10,471$

24.6% 58,207$

1,958$

3.4% 58,146$

61$

99.9%
Utilities 2,088$

129$

6.2% -$

0.0% -$

0.0%
Interdepartmental Charges 179,510$

44,877$

25.0% 193,192$

48,297$

25.0% 193,192$

100.0%
Capital Acquisitions 15,000$

644$

4.3% 15,000$

0.0% 15,000$

100.0%
Total Expenses 6,253,088$

1,222,523$

19.6% 6,305,776$

1,361,577$

21.6% 6,268,532$

37,244$

99.4%
Prior Year FY2024-25 Current Year FY2025-26
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Charges for Services 23,659,000$ 5,906,513$ 25.0% 24,178,667$ 6,034,428$ 25.0% 24,140,800$ (37,867)$ 99.8% Other Revenues -$

6,987$

0.0% -$

53,554$

0.0% 53,000$

53,000$

0.0%
Total Revenues 23,659,000$ 5,913,500$

25.0% 24,178,667$ 6,087,982$

25.2% 24,193,800$ 15,133$

100.1%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 1,083,179$ 199,529$ 18.4% 1,104,986$ 275,257$ 24.9% 954,658$ 150,328$ 86.4% Materials, Supplies & Maintenance 24,000$

568$

2.4% 24,000$

348$

1.5% 24,000$

100.0%
Professional/Contract Services 505,000$

45,826$

9.1% 682,950$

194,108$

28.4% 760,950$

(78,000)$

111.4%
Training, Travel & Membership Dues 11,600$

0.0% 16,000$

617$

3.9% 16,000$

100.0%
Liabilities, Settlements & Insurance 18,654,469$

6,380,873$

34.2% 19,168,224$

8,718,158$

45.5% 19,049,224$

119,000$

99.4%
Utilities 750$

94$

12.5% -$

0.0% -$

0.0%
Interdepartmental Charges 235,890$

49,571$

21.0% 305,658$

66,139$

21.6% 310,000$

(4,342)$

101.4%
Bad Debts and Other Losses 3,000,000$

0.0% 3,000,000$

100.0%
Total Expenses 23,514,888$ 6,676,461$

28.4% 24,301,818$ 9,254,627$

38.1% 24,114,832$ 186,986$

99.2%
Revenues Less Expenditures 144,112$

(762,961)$

(123,151)$

(3,166,645)$

78,968$

202,119$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
79 64

As of September 30, 2025 , the City has received $ 6.1 million or 25.2% of the FY25 -26 budgeted revenues, compared to

$5.
9 million or 25.0%, during the same period ending September 30, 2024.

The increase in

Charges for Services
is due to higher

Liability
Insurance Reimbursements, partially
offset by

a decrease in
Workers’ Compensation Administration Reimbursements.

Overall, revenues
are projected to

end the year with a modest surplus of

approximately
$15,000

On the expenditure side

,
the Self -Insurance Fund

recorded
expenditures of

9.3 million in
expenditures, or 38.1

%
of the FY25-26

budget, as of September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $6.7 million, or 28.4% of the

FY
24 -
25 budget. The
increase in the

Professional/Contract Services
classification reflects a one-time, upfront payment
to the City’s contracted third -party workers ’ compensation administrator .

The increase in

the

Liabilities, Settlements & Insurance classification is attributable to higher insurance premium costs.

Year-end expenditure savings of

approximately
$187,000 are projected, driven primarily by savings
in Salaries and Employee Benefits due to 1.0 FTE va cancies.

In addition
, higher insurance
premiums are expected to be offset by lower -than-budgeted liability settlement s, resulting in projected

savings of $119,000

in the

L
iabilities, Settlements & Insurance

classification
.

Overall, the Self -Insurance Fund is projected to end the fiscal year with

an operating surplus
of
approximately

$79,000

80 65

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

Program Modifications
Budget Division Staffing Realignment
Delete 0.5 FTE Deputy Finance Director and Add 1.0 FTE Administrative Analyst

Expenditure: $215 (General Fund)

The Finance Department is requesting

to delete

0.5 FTE Deputy Finance Director

and add

1.0 FTE
Administrative Analyst to support the Budget Division. Following the financial impacts of the COVID- 19 pandemic, the

City implemented a zero
-based budgeting strategy in 2021

, which has

increased
the level of analytical support required for citywide budgeting and financial reporting. The additional Administrative Analyst position will help manage the expanded

workload
associated with the
division’s responsibility, enhance the accuracy and consistency of departmental budget submissions, and improve overall efficiency within the Budget Division.

Comprehensive User Fee &

Development Impact Fee Study

Increase Capital Expenditure Budget by $100,000
The Finance Department is requesting to increase the capital

expenditure
budget by $100,000 to
fund a

comprehensive User
Fee Study and Development Impact Fee Study.

The City strives to
conduct a comprehensive user fee study every five years

ensuring
fees charged keep pace with the
Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Account Clerk 4.00 4.00 4.00 4.00 - -$ Accountant 5.00 5.00

5. 00 5.00 - -$ Accountant, Senior 3.00

2.00 2.00 2.00

- -$
Accounting Manager 1.00

1.00 1.00 1.00

- -$
Accounting Supervisor - 1.00

1.00 1.00

- -$
Accounting Technician 4.00

4.00 4.00

4.00 - -$
Administrative Analyst 1.00

1.00 1.00

2.00 1.00

140,547$
Administrative Assistant 1.00

1.00 1.00

1.00 - -$
Assistant Finance Director 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 - -$
Claims Technician 2.00

2.00 2.00

2.00 - -$
Deputy Finance Director 1.25

1.25 1.25

0.75 (0.50)

(140,332)$

Finance Director 1.00 1.00

1.00 1.00

- -$

License Supervisor 1.00

1.00 1.00

1.00 - -$
Payroll Specialist 3.00 3.00

3.00 3.00 - -$ Revenue Manager 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 - -$
Senior Business Manager 1.00

1.00 1.00

1.00 - -$

Senior Buyer 1.00

1.00 1.00

1.00 - -$
Staff Assistant 1.00 1.00 1.00 1.00 - -$ Workers' Comp Claims Examiner 1.00

1.00 1.00

1.00 - -$

Workers Comp Manager 1.00

1.00 1.00

1.00 - -$

Total FTE 38.25

38.25 38.25

38.75 0.50 215$
81 66

cost of providing the services. This fee study will also examine market rate fees to re - establish ranges available to departments to charge. For the DIF Study,

s
tate law requires that these studies be
updated at least every eight years to ensure that development impact fees remain aligned with current infrastructure needs and the actual cost of providing public

facilities. The study will evaluate
the City’s existing impact fees, update cost assumptions, and ensure that fees collected from new developments appropriately cover the proportional cost of the infrastructure improvements needed to serve that

development. This update supports the City’s priority of maint aining fiscally
responsible, legally compliant cost-recovery mechanisms without increasing taxes.

82 67

Fire

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 e nforcement 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.

Department Organization

83 68

Fire Operating Budget Summary (General Fund - Operating Fund)

As of September 30, 2025, a total of

2.1 million or 14.6

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$1.8
million in
revenues, representing 13.1

%
of the

FY24
-25

revenue budget. The increase in Charges for Services
is primarily driven by an increase in Emergency Transport Fees . Overall, year -end revenues are projected to finish slightly

over

budget by approximately

$
51,000

On the expenditure side, the

department expended
$18.2

million or 26% of its FY25-26 budget, as
of September 30, 2025. During the same period ending September 30, 2024,

expenditures totaled

$17.4

million, or 25.1% of the

FY24
-25

expenditure budget. The increase in Salaries and Employee Benefits reflects approved pay and benefit adjustments and C alPERS rates adjustments. Salaries and Employee Benefits is projected to end the year

with a $1.2 million deficit, driven primarily by
overages in

overtime

resulting from vacancies and the requirement to meet constant staffing

rules
.

The decrease in actuals for

Salaries and Benefits Reimbursements

classification reflects lower
reimbursements for strike team deployments and other mutual-aid activities compared to the prior year. These reimbursements are variable and dependent on the level of regional emergency activity, which was higher in the prior fiscal year.

Overall, the department is projected to end the fiscal year with a

1.2 million
in expenditure deficit,
driven primarily by overtime

needed

maintain

constant staffing

requirements
.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 210,000$ 57, 363$ 27.3% 250,000$ 84,056$ 33.6% 250,000$ -$ 100.0% Charges for Services 11,139,044$

1,174,295$

10.5% 11,620,500$

1,415,757$

12.2% 11,698,310$

77,810$

100.7%
Other Revenues -$

0.0% 27,000$

0.0% -$

(27,000)$

0.0%
Operating Transfers In 2,121,088$

534,514$

25.2% 2,214,815$

558,133$

25.2% 2,214,815$

100.0%
Total Revenues 13,470,132$

1,766,172$

13.1% 14,112,315$

2,057,946$

14.6% 14,163,125$

50,810$

100.4%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 58,086,588$ 15, 258,275$ 26.3% 61,261,397$ 16,173,748$ 26.4% 62,507,264$ (1,245,867)$ 102.0% Salaries and Benefits Reimbursements (1,000,000)$

(489,374)$

48.9% (1,000,000)$

(46,023)$

4.6% (1,000,000)$

100.0%
Materials, Supplies & Maintenance 2,814,631$

564,106$

20.0% 1,281,780$

165,939$

12.9% 1,264,956$

16,824$

98.7%
Materials Reimbursements (75,000)$

(23,372)$

31.2% (75,000)$

(8,569)$

11.4% (75,000)$

100.0%
Professional/Contract Services 1,381,545$

214,392$

15.5% 1,374,516$

225,894$

16.4% 1,372,210$

2,306$

99.8%
Training, Travel & Membership Dues 172,200$

31,967$

18.6% 194,041$

29,873$

15.4% 190,081$

3,960$

98.0%
Liabilities, Settlements & Insurance 10,000$

0.0% -$

0.0%
Utilities 252,470$

48,647$

19.3% 188,800$

38,315$

20.3% 184,500$

4,300$

97.7%
Interdepartmental Charges 7,146,908$

1,775,765$

24.8% 6,482,490$

1,620,622$

25.0% 6,482,490$

100.0%
Debt Service 242,703$

0.0% 242,703$

100.0%
Capital Acquisitions 263,000$

15,744$

6.0% 239,500$

36,173$

15.1% 235,000$

4,500$

98.1%
Total Expenses 69,295,045$

17,396,150$

25.1% 70,190,227$

18,235,972$

26.0% 71,404,204$

(1,213,977)$

101.7%
Revenues Less Expenditures (55,824,913)$

(15,629,978)$

(56,077,912)$

(16,178,026)$

(57,241,079)$

(1,163,167)$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
84 69

Fire Staffing Budget Summary (General Fund)

Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Admin Services Manager 1.00 1.00 1.00 1.00 - -$ Administrative Analyst 2.00

2.00 2.00

2.00 - -$
Administrative Assistant 2.00

2.00 2.00 2.00 - -$ Ambulance Operator 37.00 37.00 37.00 37.00 - -$ Deputy Fire Chief 1.00

1.00 1.00

1.00 - -$
Emergency Med Svcs Coordinator 1.00

1.00 1.00

1.00 - -$
Fire Battalion Chief-Manager 5.00

5.00 5.00

5.00 - -$
Fire Cadet 1.00

1.00 1.00

1.00 - -$
Fire Captain 29.00 29.00 29.00 29.00 - -$ Fire Chief 1.00

1.00 1.00

1.00 - -$
Fire Engineer 27.00 27.00 27.00 27.00 - -$ Fire Fighter 81.00 81.00 81.00 81.00 - -$ Fire Prevention Manager 1.00

1.00 1.00

1.00 - -$
Fire Prevention Specialist 6.00

6.00 6.00

6.00 - -$

Fire Prevention Specialist Supervisor 1.00

1.00 1.00

1.00 - -$
Fire Prevention Specialist, Sr 3.00

3.00 3.00

3.00 - -$
Office Assistant 2.00

2.00 2.00

2.00 - -$
Policy & Resources Specialist 1.00

1.00 1.00

1.00 - -$
Senior Admin Assistant 1.00

1.00 1.00 1.00

- -$
Total FTE 203.00

203.00

- -$
85 70

General Services

Mission Statement

The mission of the General Services Department is to provide quality services that support City departments in a manner which enables them to carry out their community missions and to provide these services in 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 buildings and building systems in a presentable and clean condition and provides a healthy and comfortable environment within the buildings that meets the operational needs of the 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, Electric Vehicle (EV) Charging Program, Fleet Services/Warehouse, Graffiti Abatement Program, HVAC/Electrical Services, and Capital Projects.

Department Organization

86 71

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

As of September 30, 2025, a total of

$
210,000 or 20.7

%
of FY25-26 budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$
266,000 in
revenues, representing 23.4

%
of the

FY24
-25

revenue budget. The decrease in Charges for Services
is primarily driven by

changes
in rental activity for m eeting rooms and theaters at the Cultural Arts Center.

Overall,
year-end revenues are projected to

finish
slightly under budget by approximately
$31,000

On the expenditure side, the department spent $2.8 million or 22.2% of its FY25-26

budget, as of
September 30, 2025. During the same period ending September 30, 2024,

expenditures totaled

$2.7
million, or 22.8% of the

FY24
-25

expenditure budget. The increase in Salaries and Employee Benefits reflects approved pay and benefit adjustments and CalPERS rates adjustments. Overall expenditure remains

consistent year
-to-date with the

prior year

-
to-date percentage.

Overall, the department is projected to end the fiscal year with

$
462,000

in expenditure savings .

These savings are primarily attributable to Salaries and Employee Benefits due to 9.5 FTE vacancies,

reduced costs

in the

Materials, Supplies & Maintenance
classification related to

central
office

services
,

and savings

within

the

Capital Acquisitions

classification
.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Charges for Services 1,136,049$ 266,375$ 23.4% 1,016,700$ 210,038$ 20.7% 986,170$ (30,530)$ 97.0% Total Revenues 1,136,049$

266,375$

23.4% 1,016,700$

210,038$

20.7% 986,170$

(30,530)$

97.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 7,399,570$ 1,675,051$ 22.6% 7,986,709$ 1,897,254$ 23.8% 7,665,562$ 321,147$ 96.0% Salaries and Benefits Reimbursements (70,000)$

(1,878)$

2.7% (70,000)$

(26,600)$

38.0% (70,000)$

100.0%
Materials, Supplies & Maintenance 1,954,966$

450,209$

23.0% 2,231,861$

476,598$

21.4% 2,169,762$

62,099$

97.2%
Materials Reimbursements (75,000)$

(47,544)$

63.4% (180,000)$

(58,189)$

32.3% (187,500)$

7,500$

104.2%
Professional/Contract Services 858,138$

167,110$

19.5% 817,261$

119,115$

14.6% 815,651$

1,610$

99.8%
Training, Travel & Membership Dues 13,280$

(1,376)$

-10.4% 25,784$

945$

3.7% 22,219$

3,565$

86.2%
Utilities 977,377$

220,683$

22.6% 1,008,783$

225,159$

22.3% 992,783$

16,000$

98.4%
Interdepartmental Charges 868,188$

220,666$

25.4% 773,784$

193,443$

25.0% 773,784$

100.0%
Capital Acquisitions 52,258$

52,258$

100.0% 150,000$

0.0% 100,000$

50,000$

66.7%
Total Expenses 11,978,777$

2,735,179$

22.8% 12,744,182$

2,827,725$

22.2% 12,282,261$

461,921$

96.4%
Revenues Less Expenditures (10,842,728)$

(2,468,804)$

(11,727,482)$

(2,617,687)$

(11,296,091)$

431,391$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
87 72

General Services Operating Budget Summary (Airport Fund)

As of

September 30, 2025
,

the Airport Fund realized

$4.8

million

in revenues, representing

22.7%

of
the FY25-26

revenue budget. During the same period ending

September 30, 2024

, the City realized
$5.4 million or 29.5% of the FY24-25

revenue budget. The decrease in Other Revenues is attributed to lower miscellaneous revenues, primarily related to litigation reimbursements.

Overall,
revenues
are projected to end

the
fiscal year with a surplus of

$1.
6 million, driven by

increases
in the

Use of
Money and Property

classification

related to

rent increases

and investment earnings
.

On the expenditure side, the

Airport
Fund realized expenditures of

11.3 million or 47.2% of the
FY25-26

budget as of

September 30

,
2025

During the same period ending September 30,

2024

, the
City expended $5.3 million or 32.4% of the FY24-25

expenditure budget.

E
xpenditures in the
Professional/Contract Services classification increased due to ongoing litigation costs. The increase in the

Other Operating Transfers Out classification is

primarily
attributable to higher
transfers to

the

Airport Capital Fund
for approved capital projects.

Overall, the Airport Fund is projected to operate at a deficit of $2.9 million. This fund’s budget was originally adopted with a planned use of fund balance of $3.0 million.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 17,372,473$ 4,112,543$ 23.7% 18,943,864$ 4,159,455$ 22.0% 20,514,440$ 1,570,576$ 108.3% Charges for Services 469,853$

129,484$

27.6% 500,260$

103,354$

20.7% 480,570$

(19,690)$

96.1%
Other Revenues 500,000$

1,164,634$

232.9% 1,600,000$

523,124$

32.7% 1,600,000$

100.0%
Total Revenues 18,342,326$ 5,406,661$

29.5% 21,044,124$ 4,785,933$

22.7% 22,595,010$ 1,550,886$

107.4%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 1,556,604$ 328,867$ 21.1% 1,622,106$ 405,694$ 25.0% 1,709,966$ (87,860)$ 105.4% Materials, Supplies & Maintenance 144,887$

22,418$

15.5% 103,667$

2,483$

2.4% 103,667$

100.0%
Professional/Contract Services 1,021,300$

38,214$

3.7% 6,641,949$

291,269$

4.4% 6,644,990$

(3,041)$

100.0%
Training, Travel & Membership Dues 11,923$

3,164$

26.5% 11,551$

294$

2.5% 8,506$

3,045$

73.6%
Depreciation and Amortization 260,582$

67,980$

26.1% 275,000$

67,586$

24.6% 275,000$

100.0%
Utilities 220,946$

56,890$

25.7% 268,400$

41,555$

15.5% 228,100$

40,300$

85.0%
Interdepartmental Charges 624,115$

141,000$

22.6% 682,712$

160,438$

23.5% 627,915$

54,797$

92.0%
Bad Debts and Other Losses 15,000$

0.0% 25,000$

100.0%
Other Operating Transfers Out 12,602,785$

4,674,405$

37.1% 14,351,016$

10,339,121$

72.0% 15,902,816$

(1,551,800)$

110.8%
Total Expenses 16,458,142$ 5,332,938$

32.4% 23,981,401$ 11,308,440$ 47.2% 25,525,960$ (1,544,559)$

106.4%
Revenues Less Expenditures 1,884,184$

73,723$

(2,937,277)$

(6,522,507)$

(2,930,950)$

6,327$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
88 73

General Services Operating Budget Summary (Fleet Services Fund)

As of September 30,

2025

, the Fleet Services
Fund realized $3.4 million in revenues, representing

22.6% of the

FY25
-26

revenue budget . For the same period ending September 30,

2024

, the City
realized $3.5 million in revenues, or 26.2

%
of the

FY24
-25

revenue budget. The decrease in

Use of
Money and Property classification is

primarily

due
to a reclassification of investment earnings that
is now recognized in the General Fund rather than the Fleet Fund, which started in FY25 -26. Fleet Fund revenues are projected to end the fiscal year at a

deficit
of $1.9 million due to lower fleet
replacement contributions

from other departments.

On the expenditure side, the

Fleet Services Operating Fund

recorded
$3.6 million in expenditures,
or 24.9

%
of the

FY25
-26

expenditure budget , as of September 30,

202

5. During the same period
ending September 30,

2024

, the City expended
$2.4 million or 27.3% of the FY24-25

expenditure
budget. The $688,000

increase in Material, Supplies & Maintenance reflects the centralized budgeting of

vehicle

maintenance costs
in Fleet Services

Fund

beginning in FY25
-26

, combined with
rising costs for

vehicle
parts. The Depreciation and Amortization classification also showed increase in expenditures due to increase

s
in the

number of

newer
vehicles replacing fully depreciated
assets. Expenditures overall are projected to end the year

at a surplus of

$
708,000

primarily due to
vacancy savings, as a result of 4.5 FTE vacancies.

Overall, the Fleet Fund is projected to operate at a

deficit

$
193,000

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 6,323,020$ 1,781,087$ 28.2% 5,782,968$ 921,282$ 15.9% 3,685,130$ (2,097,838)$ 63.7% Charges for Services 6,896,676$

1,635,099$

23.7% 9,411,648$

2,374,550$

25.2% 9,497,670$

86,022$

100.9%
Other Revenues 80,464$

71,410$

88.7% 75,000$

151,500$

202.0% 165,000$

90,000$

220.0%
Total Revenues 13,300,160$ 3,487,596$

26.2% 15,269,616$ 3,447,332$

22.6% 13,347,800$ (1,921,816)$

87.4%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 4,069,608$ 919,672$ 22.6% 4,458,515$ 943,939$ 21.2% 3,794,880$ 663,635$ 85.1% Materials, Supplies & Maintenance 269,487$

97,930$

36.3% 2,898,477$

785,545$

27.1% 2,985,911$

(87,434)$

103.0%
Materials Reimbursements -$

0.0% -$

0.0%
Parts, Fuel & Lubricants Inventory Purchases 3,085,628$

633,773$

20.5% 3,213,628$

660,103$

20.5% 3,210,000$

3,628$

99.9%
Parts, Fuel & Lubricants Contra (3,085,628)$

(633,773)$

20.5% (3,213,628)$

(660,103)$

20.5% (3,210,000)$

(3,628)$

99.9%
Professional/Contract Services 208,334$

84,893$

40.7% 41,291$

3,219$

7.8% 24,795$

16,496$

60.0%
Training, Travel & Membership Dues 54,075$

1,884$

3.5% 29,585$

38$

0.1% 15,185$

14,400$

51.3%
Depreciation and Amortization 1,462,016$

359,374$

24.6% 3,750,000$

864,615$

23.1% 3,750,000$

100.0%
Liabilities, Settlements & Insurance 16,880$

0.0% -$

0.0%
Utilities 2,600$

73$

2.8% 600$

0.0% 600$

100.0%
Interdepartmental Charges 2,237,427$

546,484$

24.4% 2,292,195$

536,489$

23.4% 2,211,014$

81,181$

96.5%
Debt Service -$

0.0% -$

0.0%
Capital Acquisitions 25,939,926$

2,767,499$

10.7% 14,542,108$

2,310,452$

15.9% 14,623,533$

(81,425)$

100.6%
Asset Contra Account (25,907,433)$

(2,767,499)$

10.7% (14,492,108)$

(2,297,377)$

15.9% (14,593,533)$

101,425$

100.7%
Other Operating Transfers Out 268,205$

339,418$

126.6% 728,478$

403,369$

55.4% 728,478$

100.0%
Total Expenses 8,621,125$

2,349,728$

27.3% 14,249,141$ 3,550,289$

24.9% 13,540,863$ 708,278$

95.0%
Revenues Less Expenditures 4,679,035$

1,137,868$

1,020,475$

(102,957)$

(193,063)$

(1,213,538)$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
89 74

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

Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Accounting Technician 1.00 1.00 1.00 1.00 - -$ Admin Services Manager 1.00

1.00 1.00 1.00 - -$ Administrative Analyst 1.00

1.00 1.00 1.00 - -$ Administrative Assistant 5.00

5.00 5.00

5.00 - -$
Air Con/Heat/Elec Supervisor 1.00

1.00 1.00 1.00

- -$
Air Condition/Heat Technician 3.00 3.00

3.00 3.00 - -$

Airport Worker 4.00 4.00

4.00 4.00 - -$

Booking Manager 1.00 1.00

1.00 1.00 - -$

Booking Manager, Asst 0.50

0.50 0.50

0.50 - -$
Bookkeeper 1.00

1.00 1.00

1.00 - -$

Box Office Attendant 0.75

0.75 0.75 0.75

- -$
Box Office Manager 1.00

1.00 1.00 1.00

- -$
Building Maintainer 6.00

6.00 6.00

6.00 - -$
Building Maintainer, Sr 1.00

1.00 1.00

1.00 - -$

Building Maintenance Supervisor 1.00

1.00 1.00

1.00 - -$

Capital Projects Construction Superintendent 2.00

2.00 2.00 2.00

- -$
Central Services Coordinator 1.00

1.00 1.00 1.00 - -$ Central Services Supervisor 1.00

1.00 1.00 1.00 - -$ Custodian 17.00 18.00 18.00 18.00 - -$ Custodian, Senior 2.00

2.00 2.00 2.00 - -$ Customer Service Rep 2.00

2.00 2.00

2.00 - -$
Driver/Clerk, Delivery 1.50 1.50 1.50 1.00 (0.50) (36,168)$ Electrician 2.00 2.00

2.00 2.00 - -$

Equipment Attendant 4.00 4.00

4.00 4.00 - -$

Facilities Service Supervisor 1.00 1.00

1.00 1.00 - -$

Facility Operations Attend, Sr 3.00

3.00 3.00 3.00

- -$
Facility Operations Attendant 5.00

5.00 5.00 5.00

- -$
Facility Operations Chief 1.50

1.50 1.50 1.50

- -$
Facility Operations Manager 1.00 1.00 1.00

1.00 - -$
Fleet Services Manager 1.00 1.00

1.00 2.00 1.00 209,941$ Fleet Services Supervisor 2.00 2.00

2.00 2.00 - -$

General Services Director 1.00

1.00 1.00 1.00 - -$ Graphic Designer 2.00 2.00 2.00 2.00 - -$ Lead Airport Worker 1.00

1.00 1.00 1.00 - -$ Mechanic 7.00

7.00 7.00

7.00 - -$
Mechanic, Senior 9.00

9.00 9.00 9.00 - -$ Program Coordinator 1.00 1.00 1.00 1.00 - -$ Reprographic Specialist 3.00

3.00 3.00 2.00

(1.00)

(86,158)$

Senior Admin Assistant 1.00

1.00 1.00 1.00

- -$

Senior Box Office Attendant 0.40

0.40 0.40 0.40

- -$

Senior Business Manager 4.00

4.00 4.00 3.00

(1.00) (158,486)$

Staff Assistant 2.00

2.00 2.00

2.00 - -$
Stage Manager 0.10

0. 10 0.10 0.10 - -$ Storekeeper 3.00

3.00 3.00 3.00

- -$
Storekeeper, Auto Parts 1.00

1.00 1.00 1.00

- -$

Theater Technician 3.00 3.00 3.00

3.00 - -$

Theatre Technical Director 1.00

1.00 1.00 1.00 - -$

Warehouse Supervisor 1.00

1.00 1.00

1.00 - -$

Welder, Senior 1.00

1.00 1.00

1.00 - -$
Total FTE 116.75

117.75

116.25

(1.50) (70,872)$
90 75

Program Modifications
Fleet Services Staffing Realignment
Delete 1.0 FTE Senior Business Manager, Delete 1.0 FTE Reprographics Specialist,

Delete 0.5
FTE Driver/Clerk, Delivery, and Add 1.0 FTE Fleet Services Manager Expenditure: $(70,872) (General Fund and Fleet Fund)

The General Services Department is requesting the

deletion
of 1.0 FTE Senior Business Manager

1.0 FTE Reprographics Specialist , and 0.5 FTE Driver/Clerk, Delivery and the addition of 1.0 FTE

Fleet
Services Manager. The new Fleet Services Manager position will support

the Fleet Division
by
overseeing vehicle acquisition/disposal, repair and maintenance operations, and

management
of
the City Warehouse. The existing Fleet Services Manager position will be

reassigned
to provide
Department-wide administration support, including oversight of the electric vehicle program and graffiti removal program,

and will operate under the

working title

Project and Resource Manager
.

The deletion of

the
Senior Business Manager and Delivery/Driver Clerk position will

result in
decreased contributions from the General Fund to Fleet

Services
Fund, which will effectively offset
the net effects of the additional Fleet Services Manager and elimination of

the Reprographics
Specialist. The requested decrease in Fleet funded positions will decrease the

overall
Fleet operating
cost, which in turn reduces the contribution needed from General Fund by approximately $121,919.

Fleet Services Staffing Realignment

and Impact on Fleet Fund

Decrease the Fleet Fund Revenue

and

Expenditure Budget by $(194,654)

The General Services department is requesting to decrease both Fleet Fund Revenue and Expenditure Budget by $194,654

, as the requested deletion of 1.0 FTE Senior Bus
iness Manager and

0.5 FTE Delivery/Driver

Clerk discussed above

will decrease the total Fleet operating cost in Fleet
Fund. This change will in turn decrease required contributions from other departments and funds to support the Fleet Fund ’s operating cost ; thus, it will decrease the Fleet Fund Revenue with no net impact on the Fleet Fund.

91 76

Rental Revenue Adjustment
Increase the Airport Fund Revenue Budget by $876,600 and Increase the Airport Fund Expenditure Budget by $1,791,600

The General Services Department is requesting to increase the Airport Fund’s Revenue Budget by $876,600 and increase the Airport Fund’s Expenditure Budget by $1,791,600.

As a result of
a recent
litigation settlement, the Airport Fund

receiv
ed additional rental revenue

totaling
$915,000 in FY24-
25 and

will receive

additional

$876,600

FY25
-26,

for a
total of $1,791,600

be transferred from
the Airport Fund to the General Fund during FY25-26

92 77

Human Resources

Mission Statement

The mission of the Human Resources (“HR”) Department is to support all City departments in attracting, developing, and retaining an exceptional community -service - driven workforce .

Functional Responsibilities

HR 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 recru iting candidates, hiring employees, retaining talent, onboarding, employee development, performance management, strategic workforce planning, benefits, classification and compensation, employee wellness, employee and labor relations, employee engagement, c ompliance with labor laws, employee records, diversity and inclusion, succession planning, and fostering a positive workplace culture.

Department Organization

93 78

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

As of September 30, 2025, t he Human Resources Department expended $756,000

or 22.6% of its
FY25-26 budget.

For
the same period ending September 30, 2024, expenditures totaled

$
590,000, or

18.2 %
of the FY24 -25 expenditure budget. The deficit in Salaries and Employee Benefits reflects increased overtime, due to various employee events and vacancies, as well as impacts of the City utilizing a vacancy factor when adopting the budget . Professional/Contract Services is projected to exceed budget by

approximately
$16,000

due to

higher
disability management consulting and
service award costs partially offset by savings

in legal
costs.

Overall, the department is projected to end the fiscal year

approximately
$90,000

over budget ,
driven by higher-than-budgeted costs

in
Salaries and Employee Benefits.

Human Resources Staffing Budget Summary (General Fund)

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 1,998,080$ 442,865$ 22.2% 2,320,767$ 593,035$ 25.6% 2,425,409$ (104,642)$ 104.5% Materials, Supplies & Maintenance 311,041$

48,439$

15.6% 332,073$

56,048$

16.9% 304,695$

27,378$

91.8%
Professional/Contract Services 786,099$

72,909$

9.3% 462,659$

58,407$

12.6% 478,600$

(15,941)$

103.4%
Training, Travel & Membership Dues 66,780$

5,920$

8.9% 69,840$

7,461$

10.7% 66,348$

3,492$

95.0%
Utilities 3,780$

389$

10.3% -$

0.0% -$

0.0%
Interdepartmental Charges 78,403$

19,602$

25.0% 165,675$

41,421$

25.0% 165,675$

100.0%
Total Expenses 3,244,183$

590,124$

18.2% 3,351,014$

756,372$

22.6% 3,440,727$

(89,713)$

102.7%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Administrative Assistant 2.00 2.00 2.00 2.00 - -$ Human Resources Analyst 3.00 3.00 3.00 3.00 - -$ Human Resources Director 1.00 1.00 1.00 1.00 - -$ Human Resources Technician 5.00

6.00 6.00 6.00

- -$

Principal Human Resources Analyst 2.00

3.00 3.00 3.00 - -$ Staff Assistant 1.00

1.00 1.00

1.00 - -$

Total FTE 14.00

16.00 16.00

16.00 - -$
94 79

Information Technology

Mission Statement

The mission of the Information Technology Department (“IT”) is to empower City departments with innovative, reliable, and secure technology solutions that streamline operations, enhance public service, and drive community success.

Functional Responsibilities

The IT Department plans, implements, and supports secure, reliable, and innovative technology systems that enable all City departments to operate efficiently and deliver quality public services.

The department manages infrastructure, cybersecurity, applica tions, data, and user support while aligning technology investments with the City’s strategic goals.

Department Organization

95 80

IT Operating Budget Summary (General Fund - Operating Fund)

As of September 30, 2025, the Information Technology Department

realized
$52,000

in revenues,
representing 25.2

%
of the FY25-26

revenue budget. For the same period ending September 30, 2024, the City realized

$
51,000

,
or 25.2

%
of the

FY24
-25

revenue budget . The Operating Transfers

classification is driven by

transfers from the Measure SST Fund
and is projected to

finish the year at
budget.

On the expenditure side, the department expended $3.0 million or 20.8% of its

FY25
-26 budget, as
of September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $2.5 million, or 26.4% of the FY24-25

expenditure budget. Expenditures in the
Professional/Contract Services classification are higher due to the consolidation of software programs from various departments . Salaries and Employee Benefits also shows an increase in expenditures to date compared to prior year, primarily due to

the
consolidation of embedded IT
positions from other departments in FY25 -26. The surplus projection in Salaries and Employee Benefits reflects savings from 12.0 FTE vacancies as of September 30, 2025.

Overall, the
expenditure

budget

is projected to

generate surplus of

$1.2 million
, driven primarily

b
y vacant positions.

IT Operating Budget Summary (General Fund – Measure SST Fund)

As of September 30, 2025, the Information Technology Department expended $107,000

, representing

13.2 %
of the FY25-26 expenditure

budget. For the same period ending September 30, 2024,
expenditures totaled

$
31,000

3.8%

of the

FY24
-25

expenditure

budget
.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Operating Transfers In 200,415$ 50,505$ 25.2% 205,520$ 51,791$ 25.2% 205,520$ -$ 100.0% Total Revenues 200,415$

50,505$

25.2% 205,520$

51,791$

25.2% 205,520$

100.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 6,046,087$ 1,343,905$ 22.2% 7,408,221$ 1,503,637$ 20.3% 6,289,834$ 1,118,387$ 84.9% Materials, Supplies & Maintenance 415,416$

36,977$

8.9% 351,978$

30,318$

8.6% 335,336$

16,642$

95.3%
Professional/Contract Services 2,334,068$

972,732$

41.7% 5,822,142$

1,310,858$

22.5% 5,828,182$

(6,040)$

100.1%
Training, Travel & Membership Dues 52,500$

2,047$

3.9% 60,626$

3,715$

6.1% 55,000$

5,626$

90.7%
Utilities 267,818$

65,573$

24.5% 607,463$

113,769$

18.7% 592,344$

15,119$

97.5%
Interdepartmental Charges 198,229$

48,170$

24.3% 223,796$

55,948$

25.0% 223,796$

100.0%
Capital Acquisitions 30,000$

349$

1.2% 11,550$

0.0% 8,625$

2,925$

74.7%
Total Expenses 9,344,118$

2,469,753$

26.4% 14,485,776$

3,018,245$

20.8% 13,333,117$

1,152,659$

92.0%
Revenues Less Expenditures (9,143,703)$

(2,419,248)$

(14,280,256)$

(2,966,454)$

(13,127,597)$

1,152,659$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Professional/Contract Services 825,000$ 31,436$ 3.8% 814,800$ 107,286$ 13.2% 827,425$ (12,625)$ 101.5% Total Expenses 825,000$

31,436$

3.8% 814,800$

107,286$

13.2% 827,425$

(12,625)$

101.5%
Prior Year FY2024-25 Current Year FY2025-26
96 81

The deficit projected in the Professional/Contract Services classification reflects increase d costs related to software contract renewals and costs associated with the

citywide network assessment.

The classification is projected to

end the year
approximately $13,000

over budget
.

IT Staffing Budget Summary (General Fund)

Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Administrative Analyst 1.00 1.00 1.00 1.00 - -$ Communication Supv/Wireless 1.00

- - - - -$

Communications Supv/Telecomm 1.00

- -

- - -$
Communications Supervisor - 1.00

1.00 1.00

- -$
Info Tech Specialist 5.00

8.00 7.00

7.00 - -$
Info Technology Analyst 6.00

8.00 7.00

7.00 - -$

Info Technology Director 1.00

1.00 1.00

1.00 - -$

Information Technology Manager 4.00

5.00 5.00

5.00 - -$

Intern 1.00

1.00 1.00

1.00 - -$

Project Manager -

1.00 1.00

1.00 - -$

Senior Admin Assistant 2.00

1.00 1.00

1.00 - -$
Storekeeper 1.00

- - - - -$

Systems Analyst 10.00 11.00 12.00 12.00 - -$ Telecommunications Tech 2.00

- - - - -$

Wireless Technician 4.00

6.00 6.00

6.00 - -$
Total FTE 39.00

44.00 43.00

43.00 -

-$
97 82

Police

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, and all such training and support necessary for these activities.

Department Organization

98 83

Police Operating Budget Summary (General Fund - Operating Fund)

As of September 30, 2025, a total of

2.9 million or 24.5

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

2.6 million in
revenues, representing

24.5 %

of the

FY24
-25

revenue budget
. The

increase in

Operating Transfers
In revenue classification is attributable to transfers from Measure SST to maintain sworn position staffing levels.

Overall, year
-end revenues are projected to fall short of

budget by approximately
$83,000

On the expenditure side, the department expended $30.6

million or 28% of its

FY25
-26 budget, as
of September 30, 2025. During the same period ending September 30, 2024, expenditures totaled $26.8

million, or 26.4% of the

FY24
-25

expenditure budget. The increase

in Salaries and Employee
Benefits classification is primarily due to

approved pay

and benefit adjustments and CalPERS rate
adjustments. Additionally, the department has significantly reduced its

Materials
, Supplies, and
Maintenance expenditure due to the move of

vehicle related costs to
Interdepartmental Charges,
and the consolidation of information security related software to the Information Technology Department. Overall, the expenditure

budget is projected to generate

$2.1 million surplus, primarily
due to Salaries and Employee Benefits, which reflects 69.0 FTE vacancies. This is

partially offset by
projected deficit in Professional/Contract Services

classification due to increased costs related to
parking enforcement services and

ticket processing fees from Los Angeles County.

T
he Police
Department is requesting

program modification
s to both increase the revenue operating budget and
expenditure operating budget to address this deficit.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 195,000$ 28,048$ 14. 4% 314,000$ 26,788$ 8.5% 254,140$ (59,860)$ 80.9% Intergovernmental 65,969$

3,361$

5.1% 19,750$

2,074$

10.5% 19,800$

50$

100.3%
Charges for Services 448,673$

77,845$

17.4% 369,200$

71,696$

19.4% 346,740$

(22,460)$

93.9%
Other Revenues -$

180$

0.0% -$

0.0%
Operating Transfers In 9,728,461$

2,451,572$

25.2% 10,966,238$

2,763,492$

25.2% 10,966,238$

100.0%
Total Revenues 10,438,103$

2,561,006$

24.5% 11,669,188$

2,864,050$

24.5% 11,586,918$

(82,270)$

99.3%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 86,606,900$ 23,672,840$ 27. 3% 95,398,102$ 27,679,706$ 29.0% 92,816,938$ 2,581,164$ 97.3% Salaries and Benefits Reimbursements (310,000)$

(25,136)$

8.1% (260,000)$

(136,366)$

52.4% (260,000)$

100.0%
Materials, Supplies & Maintenance 2,596,602$

523,629$

20.2% 718,298$

86,450$

12.0% 691,836$

26,462$

96.3%
Materials Reimbursements (11,397)$

(3,057)$

26.8% (11,397)$

(880)$

7.7% (12,944)$

1,547$

113.6%
Professional/Contract Services 3,105,224$

263,009$

8.5% 2,314,369$

292,980$

12.7% 2,892,484$

(578,115)$

125.0%
Training, Travel & Membership Dues 482,500$

115,465$

23.9% 468,025$

82,661$

17.7% 456,432$

11,593$

97.5%
Liabilities, Settlements & Insurance 40,000$

0.0% -$

0.0%
Utilities 514,564$

87,973$

17.1% 491,700$

87,139$

17.7% 457,000$

34,700$

92.9%
Interdepartmental Charges 8,650,406$

2,178,403$

25.2% 10,074,824$

2,518,708$

25.0% 10,074,824$

100.0%
Capital Acquisitions -$

0.0% 100,000$

100.0%
Total Expenses 101,674,799$ 26,813,126$

26.4% 109,293,921$ 30,610,398$

28.0% 107,216,570$ 2,077,351$

98.1%
Revenues Less Expenditures (91,236,696)$

(24,252,120)$

(97,624,733)$

(27,746,348)$

(95,629,652)$

1,995,081$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
99 84

Police Operating Budget Summary (Traffic Safety Fund)

As of September 30, 2025, a total of

$
13 ,000
or 18.0

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$9
,000 in revenues,
representing 4.8% of the

FY24
-25

revenue budget. Overall, year-end revenues are projected to fall short of

budget

by approximately

$
15,000

On the expenditure side, the department expended

$0
of its

FY25
-26 budget, as of September 30,
2025. During the same period ending September 30, 2024, expenditures

also

totaled

of the

FY24
-
25 expenditure budget. Actual expenditure

in this fund relates to Crossing Guard Services, which are paid in a single annual payment later in the fiscal year. This fund is projected to end the fiscal year balanced.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Fines, Forfeitures and Penalties 180,000$ 8,467$ 4.7% 70,950$ 12,522$ 17.6% 56,230$ (14,720)$ 79.3% Use of Money and Property -$

107$

0.0% -$

233$

0.0% -$

0.0%
Total Revenues 180,000$

8,574$

4.8% 70,950$

12,755$

18.0% 56,230$

(14,720)$

79.3%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Professional/Contract Services 180,000$ -$ 0.0% 70,950$ -$ 0.0% 56,230$ 14,720$ 79.3% Total Expenses 180,000$

0.0% 70,950$

0.0% 56,230$

14,720$

79.3%
Revenues Less Expenditures -$

8,574$

12,755$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
100

85 Police Staffing Budget Summary (General Fund)

Program Modifications
Police Department Staffing Enhancements for DOJ Collaborative Reform Add 2.0 FTE Digital Evidence Technician
Expenditure: $289,200 (General Fund)

The Police Department is requesting the addition of 2.0 FTE Digital Evidence Technicians

to support
ongoing department restructuring related to the California Department of Justice ’s Reform Agreement. These non-sworn positions will be responsible for

collect
ing, preserving, and analyzing
data from digital devices

–
including computers, smartphones, body -worn cameras, and in

-
car
systems – to support investigations and ensure evidence is processed in accordance with established standards.

Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Admin Services Manager 4.00 4.00 4.00 4.00 - -$ Administrative Analyst 5.00

5.00 5.00

5.00 -

Administrative Assistant 10.00 10.00 10.00 10.00 - -$

Assistant Police Chief 1.00

1.00 1.00

1.00 - -$

Crossing Guard 16.00 16.00 16.00 16.00 -

Digital Evidence Technician - - -

2.00 2.00

289,200$

Forensic ID Specialist 1.00

1.00 1.00

1.00 - -$

Forensic Supervisor 1.00

1.00 1.00

1.00 - -$

Info Tech Specialist 2.00

Info Technology Analyst 2.00

- -

- -$

Juvenile Diversion Case Worker 1.00

1.00 1.00

1.00 - -$

Juvenile Diversion Coordinator 1.00

1.00 1.00

1.00 -

Performance Auditor -

2.00 2.00

414,000$
Police Captain 3.00

3.00 3.00

3.00 -

Police Commander -

- 1.00

1.00 - -$

Police Chief 1.00

1.00 1.00

1.00 - -$

Police Lieutenant 12.00 12.00 12.00 12.00 - -$

Police Officer 170.00 170.00 170.00 170.00 - -$

Police Records Technician 17.00 17.00 17.00 17.00 - -$

Police Sergeant 32.00 32.00 32.00 32.00 - -$

Police Services Administrator 1.00

1.00 1.00

1.00 - -$

Police Services Officer 30.00 30.00 30.00 30.00 - -$ Police Services Supervisor 7.00

7.00 7.00

7.00 -

Public Information Officer -

- -

1.00 1.00

247,785$

Public Safety Comm Supvr 3.00

3.00 3.00

3.00 -

Public Safety Dispatcher 28.00 28.00 28.00 28.00 -

Senior Admin Assistant 1.00

1.00 1.00

1.00 -

Senior Business Manager 1.00

1.00 1.00

1.00 -

Sr. Forensic ID Specialist 4.00

4.00 4.00

4.00 -

Staff Assistant 4.00

4.00 4.00

3.00 (1.00)

(108,593)$

Systems Analyst 1.00

- -

Total FTE 359.00

354.00

355.00

359.00

4.00 842,392$
101

86 Add 1.0 FTE Public Information Officer
Expenditure: $247,785

(General Fund)

The Police Department is requesting the

addition of

1.0 FTE Public Information Officer to support
organizational restructuring required under

the California Department of Justice’ s Reform
Agreement. This non-sworn position will oversee the Police Department’s communication strategy, including media relations, social media, and public outreach.

Add 2.0 FTE Performance Auditor
Expenditure: $414,000 (General Fund)

The Police Department is requesting the addition of 2.0 FTE Performance Auditor s to support restructuring efforts related to the California Department of Justice

’s

Reform Agreement. These non-
sworn position s will evaluate the efficiency and effectiveness of Police Department

operations
,
programs and processes through

audits, data analysis, and police

review.

Their work will help ensure
compliance, transparency, and continuous improvement in departmental practices.

Delete 1.0

FTE

Staff Assistant

Expenditure: $(108,593) (General Fund)
The Polic

e
Department is requesting the deletion of 1.0 FTE Staff Assistant, that is currently vacant.

The savings from this deletion will partially offset the cost of implementing the new classifications mentioned above to support DOJ Reform efforts.

Parking Enforcement
Increase General Fund Revenue Budget by $845,000 and General Fund Expenditure Budget by $632,797

The Police Department is requesting to increase the revenue budget by $845,000 and the expenditure budget by $632,797 to support ongoing services related to Parking Enforcement. On December 17, 2024, Council awarded a contract services agreement to ACE Par

king Management

for
supplemental parking enforcement services. As a result, the Department has seen an increase in revenues and processing fees from Los Angeles County. To

align the budget with projected
revenues
through June 30, 2026

,
the Police Department is requesting that Council increase the revenue budget accordingly. The requested increase in the expenditure budget will be used to assist the department with ongoing contract costs

and

Los Angeles

C
ounty

processing

expenses.

102

87 Public Works

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 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; street 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.

Department Organization

103

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

As of

September 30, 2025

, a total of

$1.1
million or 21

.8%
of FY25-26

budgeted revenues have been
collected. During the same period ending

September 30, 2024
, the City realized

$1.0
million in
revenues, representing

21.3 %

of the

FY24
-25

revenue budget
. The

increase in

Operating Transfers
In primarily reflects

higher
transfers from the Sanitation Fund to support the

City’s
street sweeping
program. Overall, year-end revenues are projected to finish below budget by approximately $272,000.

On the expenditure side,

the Public Works
General Fund recorded $5.1 million in expenditures,

22.3 %

of the

FY25
-26

expenditure budget as of

September 30, 2025
.

During the same period ending
September 30, 2024 , the City expended

$4.2
million or 20.0

%
of the

FY24
-25

expenditure budget.

The increase in expenditures is primarily due to Salaries and Employee Benefits and Interdepartmental Charges

classifications.

Salaries and Employee Benefit s increased due to
approved pay rate and benefit adjustments and CalPERS rate increase s. Interdepartmental Charges increased due to the increase in Fleet Vehicle Maintenance charges moved

from
the
Materials, Supplies and Maintenance classification as well as contribution s to the Self Insurance Fund. Overall, expenditures

are
projected to generate

a
surplus of $286,000 primarily from
Materials, Supplies & Maintenance classification and the Professional/Contract Services classification driven by lower contract amounts related to dump fees and tree trimming services , partially offset by increase in

Salaries and

E
mployee Benefits for overtime required to maintain
operations while the Department manages 12.25 FTE vacancies.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Charges for Services 267,151$ -$ 0.0% 560,110$ -$ 0.0% 560,110$ -$ 100.0% Other Revenues 6,083$

0.0% -$

774$

0.0% 1,000$

1,000$

0.0%
Operating Transfers In 4,228,071$

960,692$

22.7% 4,489,141$

1,099,545$

24.5% 4,216,382$

(272,759)$

93.9%
Total Revenues 4,501,305$

960,692$

21.3% 5,049,251$

1,100,319$

21.8% 4,777,492$

(271,759)$

94.6%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 9,600,365$ 2,143,064$ 22.3% 10,786,017$ 2,716,566$ 25.2% 11,003,443$ (217,426)$ 102.0% Salaries and Benefits Reimbursements (172,500)$

(17,715)$

10.3% (172,500)$

(45,957)$

26.6% (172,500)$

100.0%
Materials, Supplies & Maintenance 3,334,607$

650,653$

19.5% 1,757,306$

375,589$

21.4% 1,580,838$

176,468$

90.0%
Materials Reimbursements (65,000)$

(7,449)$

11.5% (65,000)$

(23,718)$

36.5% (66,375)$

1,375$

102.1%
Professional/Contract Services 2,285,360$

134,014$

5.9% 2,488,000$

139,980$

5.6% 2,282,592$

205,408$

91.7%
Training, Travel & Membership Dues 61,361$

1,055$

1.7% 45,678$

4,530$

9.9% 23,768$

21,910$

52.0%
Liabilities, Settlements & Insurance 100,000$

838$

0.8% -$

0.0% -$

0.0%
Utilities 991,199$

167,081$

16.9% 930,300$

196,675$

21.1% 931,560$

(1,260)$

100.1%
Interdepartmental Charges 4,782,077$

1,117,794$

23.4% 7,016,760$

1,754,190$

25.0% 7,016,760$

100.0%
Capital Acquisitions 205,000$

39,786$

19.4% 204,375$

39$

0.0% 104,375$

100,000$

51.1%
Total Expenses 21,122,469$

4,229,121$

20.0% 22,990,936$

5,117,894$

22.3% 22,704,461$

286,475$

98.8%
Revenues Less Expenditures (16,621,164)$

(3,268,429)$

(17,941,685)$

(4,017,575)$

(17,926,969)$

14,716$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
104

89 Public Works Operating Budget Summary (Sanitation Fund)

As of September 30, 2025, a total of

$2.3
million or 12.4

%
of FY25-26

budgeted revenues have been
collected. During the same period ending

September 30, 2024
, the City realized

2.9 million in
revenues, representing

15.2 %
of the

FY24
-25

revenue budget. The decrease is mainly attributable
to lower

Charges for Services
, reflecting the timing of invoice collection, and to lower

Operating
Transfers In due to the consolidation of the Sanitation Vehicle Replacement Fund into the Sanitation Operating Fund. Overall, it is projected

that the revenue budget will operate at a surplus
at year-end of

$
499,000.

On the expenditure side, this fund realized expenditures of

3.7 million or 18.8% of the

FY25
-26
expenditure budget as of

September 30, 2025

During the same period ending

September 30, 2024

,
the fund expended $3.7 million or 18.7% of the

FY24
-25

expenditure budget. When examining
actual expenditures, the

y
remained relatively consistent year-over-year. When

viewed at the

classification level,

Materials, Supplies

& Maintenance
showed a decrease in year-to-date actuals,
while Interdepartmental Charges increased, primarily due to the reclassification of Fleet

Vehicle
Maintenance costs to Interdepartmental Charges starting FY2025

26. It is projected that the
expenditure budget will operate at a surplus of

$1.
2 million at year -end, primarily due to salary
savings from

4. 25 FTE vacancies and Other Operating Transfers Out caused by lower Street Sweeping Cost

transfers to General Fund.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 1,128,063$ 691$ 0.1% 583,350$ 599$ 0.1% 1,511,460$ 928,110$ 259.1% Use of Money and Property 294,000$

117,338$

39.9% 335,298$

112,405$

33.5% 412,810$

77,512$

123.1%
Charges for Services 15,339,406$

2,292,372$

14.9% 17,457,220$

2,094,511$

12.0% 17,016,550$

(440,670)$

97.5%
Other Revenues 125,000$

20$

0.0% 110,000$

42,290$

38.4% 44,000$

(66,000)$

40.0%
Operating Transfers In 2,032,346$

470,406$

23.1% 373,829$

93,459$

25.0% 373,829$

100.0%
Total Revenues 18,918,815$ 2,880,827$

15.2% 18,859,697$ 2,343,264$

12.4% 19,358,649$ 498,952$

102.6%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 4,716,434$ 977,244$ 20.7% 4,832,863$ 1,070,531$ 22.2% 4,410,326$ 422,537$ 91.3% Salaries and Benefits Reimbursements -$

0.0% -$

0.0%
Materials, Supplies & Maintenance 3,886,729$

732,414$

18.8% 1,271,962$

77,790$

6.1% 1,165,934$

106,028$

91.7%
Materials Reimbursements (150,000)$

(1,513)$

1.0% (250,000)$

(1,184)$

0.5% (290,000)$

40,000$

116.0%
Professional/Contract Services 5,022,008$

654,975$

13.0% 5,213,539$

666,129$

12.8% 5,023,853$

189,686$

96.4%
Training, Travel & Membership Dues 82,300$

41,567$

50.5% 69,355$

39,170$

56.5% 68,850$

505$

99.3%
Depreciation and Amortization 1,095,493$

208,184$

19.0% 1,200,000$

151,414$

12.6% 1,008,386$

191,614$

84.0%
Liabilities, Settlements & Insurance 60,000$

0.0% -$

0.0%
Utilities 4,190$

472$

11.3% -$

0.0% -$

0.0%
Interdepartmental Charges 2,067,676$

455,996$

22.1% 5,735,913$

1,332,715$

23.2% 5,723,994$

11,919$

99.8%
Debt Service 90,000$

0.0% -$

0.0%
Capital Acquisitions 9,382,966$

0.0% 5,663,221$

2,133,339$

37.7% 5,659,858$

3,363$

99.9%
Asset Contra Account (9,382,966)$

0.0% (5,663,221)$

(2,133,339)$

37.7% (5,659,858)$

(3,363)$

99.9%
Bad Debts and Other Losses 52,860$

30,803$

58.3% 50,000$

128$

0.3% 39,253$

10,747$

78.5%
Other Operating Transfers Out 3,134,975$

644,250$

20.6% 1,746,020$

408,279$

23.4% 1,473,261$

272,759$

84.4%
Total Expenses 20,062,665$ 3,744,392$

18.7% 19,869,652$ 3,744,972$

18.8% 18,623,857$ 1,245,795$

93.7%
Revenues Less Expenditures (1,143,850)$

(863,565)$

(1,009,955)$

(1,401,708)$

734,792$

1,744,747$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
105

90 Overall, the Sanitation Fund is projected to operate at a n approximate surplus of $735,000 . The projected surplus is due to a series of rate increases

approved by

City Council using the Proposition
218 hearing process

through June 2028
. The goal of these rate increases is to reverse the structural deficit and rebuild reserves to sufficient levels by June 2028.

Public Works Operating Budget Summary (Sewer Fund)

As of

September 30, 2025

, a total of

1.3 million or 15.9

%
of FY25-26

budgeted revenues have been
collected. During the same period ending

September 30, 2024
, the City realized

$1.5
million in
revenues, representing

17.8 %
of the

FY24
-25

revenue budget. The decrease

is mainly attributable
to lower

Charges for Services
, reflecting the timing of invoice collection, and to lower

Operating
Transfers In due to

the
consolidation of the Sewer Vehicle Replacement Fund into the Sewer Operating Fund . This decrease is partially offset by increases in the Use of Money and Property classification. Overall, it is projected that the revenue budget will operate at a surplus at year-end of $62,000

On the expenditure side,

this fund realized
expenditures of

3.1 million or 43.1

%
of the

FY25
-26
expenditure budget

as of

September 30, 2025

During the same period ending

September 30, 2024

,
the City

expended
$2.1 million or 37.7% of the FY24-25

expenditure budget. Expenditures increased
mostly in the Other Operating Transfers Out classification due to Transfers to the Sewer Capital Fund. Also,

De
preciation and Amortization classificati

on
shows an increase due to the transfer of
depreciation expense from the Sewer Capital Fund to the Sewer Operating Fund . The expenditure Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 699,000$ 184,555$ 26.4% 601,771$ 261,252$ 43.4% 647,100$ 45,329$ 107.5% Charges for Services 7,315,073$

1,281,662$

17.5% 7,553,510$

1,037,452$

13.7% 7,579,970$

26,460$

100.4%
Other Revenues 50,000$

0.0% 10,000$

0.0% -$

(10,000)$

0.0%
Operating Transfers In 552,009$

64,149$

11.6% 35,827$

8,958$

25.0% 35,827$

100.0%
Total Revenues 8,616,082$

1,530,366$

17.8% 8,201,108$

1,307,662$

15.9% 8,262,897$

61,789$

100.8%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 1,956,558$ 429,889$ 22.0% 2,065,769$ 561,025$ 27.2% 2,267,092$ (201,323)$ 109.7% Materials, Supplies & Maintenance 348,642$

61,938$

17.8% 196,305$

8,945$

4.6% 188,605$

7,700$

96.1%
Materials Reimbursements -$

(341)$

0.0% -$

(20,217)$

0.0% (20,217)$

20,217$

0.0%
Professional/Contract Services 509,250$

29,762$

5.8% 456,871$

30,755$

6.7% 465,188$

(8,317)$

101.8%
Training, Travel & Membership Dues 15,246$

0.0% 12,368$

100.0%
Depreciation and Amortization 89,625$

46,195$

51.5% 1,350,000$

336,412$

24.9% 1,361,691$

(11,691)$

100.9%
Utilities 97,557$

6,455$

6.6% 93,083$

13,166$

14.1% 93,148$

(65)$

100.1%
Interdepartmental Charges 744,053$

165,016$

22.2% 1,027,196$

240,541$

23.4% 1,029,187$

(1,991)$

100.2%
Capital Acquisitions 4,423,355$

1,338,196$

30.3% 249,602$

35,778$

14.3% 249,602$

100.0%
Asset Contra Account (4,423,355)$

(1,338,196)$

30.3% (249,602)$

(35,778)$

14.3% (224,602)$

(25,000)$

90.0%
Bad Debts and Other Losses 20,000$

10,629$

53.1% 30,000$

30$

0.1% 16,068$

13,932$

53.6%
Other Operating Transfers Out 1,917,662$

1,400,340$

73.0% 1,900,000$

1,900,000$

100.0% 1,900,000$

100.0%
Total Expenses 5,698,593$

2,149,883$

37.7% 7,131,592$

3,070,657$

43.1% 7,338,130$

(206,538)$

102.9%
Revenues Less Expenditures 2,917,489$

(619,517)$

1,069,516$

(1,762,995)$

924,767$

(144,749)$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
106

91 budget is projected to end the year at deficit of approximately $ 207,000, primarily due to increased overtime as the fund has

1.25 FTE vacancies. Overall, the Sewer Fund is projected to operate with a $925,000

surplus. The projected surplus is due to a series of rate increases approved by

City Council
using the Proposition 218 hearing process

through

December 2027
.

Public Works Operating Budget Summary (Water Fund)

The Water Fund realized revenues of

12.9 million or 20.9% of the FY25-26

revenue budget

as of
September 30, 2025

During the same period ending

September 30, 2024
, the City

realized revenues
of $11.3

million or 20.6% of the

FY24
-25

revenue budget. Within the Charges for Services
classification, revenues are up $1.4 million or 13.3% compared to the prior year, reflecting the

City
Council-approved annual water rate increases

effective
January 1, 2025, through

2029. The
Operating Transfers In classification is lower

due to the

consolidation of the

Water
Vehicle
Replacement Fund into the

Water
Operating Fund.

Overall
, the Water Operating Fund is projected
to end the fiscal year with a revenue surplus

1.3 million
.

On the expenditure side, th e fund realized expenditures of

15.6 million or 25.4% of the

FY25
-26

expenditure budget

as of

September 30, 2025

During the same period ending

September 30, 2024

,
the City expended

13.7 million or 26.4

%
of the

FY24
-25

expenditure budget.

The incr
ease is
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 1,281,000$ 638,466$ 49.8% 2,005,039$ 751,891$ 37.5% 2,209,530$ 204,491$ 110.2% Charges for Services 53,095,000$

10,538,349$

19.8% 59,689,460$

11,944,242$

20.0% 60,593,750$

904,290$

101.5%
Other Revenues 5,000$

8,727$

174.5% 50,000$

202,485$

405.0% 217,720$

167,720$

435.4%
Operating Transfers In 422,501$

95,311$

22.6% 24,388$

6,096$

25.0% 24,388$

100.0%
Total Revenues 54,803,501$ 11,280,853$ 20.6% 61,768,887$ 12,904,714$ 20.9% 63,045,388$ 1,276,501$

102.1%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 5,949,210$ 1,346,187$ 22.6% 6,212,724$ 1,481,787$ 23.9% 5,753,024$ 459,700$ 92.6% Salaries and Benefits Reimbursements -$

0.0% -$

0.0%
Materials, Supplies & Maintenance 1,938,160$

156,198$

8.1% 1,627,164$

115,588$

7.1% 1,517,953$

109,211$

93.3%
Materials Reimbursements -$

(60)$

0.0% -$

(48)$

0.0% -$

0.0%
Parts, Fuel & Lubricants Inventory Purcha 612,670$ 100,935$ 16.5% 612,670$ 61,542$ 10.0% 612,670$ -$ 100.0% Parts, Fuel & Lubricants Contra (612,670)$

(100,935)$

16.5% (612,670)$

(61,542)$

10.0% (612,670)$

100.0%
Professional/Contract Services 2,031,344$

291,336$

14.3% 2,200,563$

219,133$

10.0% 2,145,424$

55,139$

97.5%
Water Supply Costs 34,785,000$

8,349,965$

24.0% 40,477,000$

9,084,834$

22.4% 36,569,600$

3,907,400$

90.3%
Training, Travel & Membership Dues 52,453$

583$

1.1% 39,183$

4,278$

10.9% 39,183$

100.0%
Depreciation and Amortization 156,091$

37,115$

23.8% 2,950,000$

715,407$

24.3% 2,862,000$

88,000$

97.0%
Liabilities, Settlements & Insurance 16,008$

0.0% -$

0.0%
Utilities 205,820$

42,756$

20.8% 206,189$

49,928$

24.2% 280,000$

(73,811)$

135.8%
Interdepartmental Charges 3,650,457$

866,903$

23.7% 4,249,952$

959,719$

22.6% 4,204,328$

45,624$

98.9%
Debt Service 644,517$

0.0% 1,567,288$

0.0% 1,462,570$

104,718$

93.3%
Debt Service Reimbursements (580,744)$

0.0% (1,307,414)$

0.0% (1,236,790)$

(70,624)$

94.6%
Capital Acquisitions 884,109$

0.0% 1,638,868$

236,123$

14.4% 1,638,868$

100.0%
Asset Contra Account (884,109)$

0.0% (1,638,868)$

(236,123)$

14.4% (1,638,868)$

100.0%
Bad Debts and Other Losses 150,000$

8,940$

6.0% 150,000$

75$

0.1% 10,000$

140,000$

6.7%
Other Operating Transfers Out 2,906,903$

2,591,411$

89.1% 2,953,507$

2,950,876$

99.9% 2,953,507$

100.0%
Total Expenses 51,905,219$ 13,691,334$ 26.4% 61,326,156$ 15,581,577$ 25.4% 56,560,799$ 4,765,357$

92.2%
Revenues Less Expenditures 2,898,282$

(2,410,481)$

442,731$

(2,676,863)$

6,484,589$

6,041,858$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
107

92 primarily driven by higher Water Supply Costs resulting from higher water rates, increase d Depreciation and Amortization

due to

the transfer of depreciation expense from the Water Capital Fund to the Water Operating Fund, and higher transfers

to the Water

Capital Fund recorded within
the

Other Operating Transfer Out

classification
.

The Water Fund has

4. 25

FTE vacancies

and
is projected to generate $4

60 ,000

in budgetary savings.

Overall, the Water Fund is projected to operate at a

6.5 million surplus, primarily driven by the
projected

surplus

Water Supply Costs

Public Works Operating Budget Summary (Street Lighting District Fund)

As of

September 30, 2025
, a total of

$
309,000 or 15.9

%
of FY25-26 budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

$
310,000

in
revenues, representing

16.6 %
of the

FY24
-25

revenue budget. Overall, the Street Lighting District
Fund is projected to end the fiscal year with a revenue

shortfall

$
3,900.

On the expenditure side,

this fund realized
expenditures of

$
309,000 or 15.9

%
of the

FY25
-26
expenditure budget

as of

September 30, 2025.

During the same period ending

September 30, 2024

,
the City

expended
$310,000

or 16.6

%
of the

FY24
-25

expenditure budget.

The fund is

expected to
be balanced at the end of the

fiscal year
.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Taxes 1,291,500$ 8,170$ 0.6% 1, 291,371$ -$ 0.0% 1,291,371$ -$ 100.0% Operating Transfers In 574,772$

301,776$

52.5% 646,457$

308,628$

47.7% 642,586$

(3,871)$

99.4%
Total Revenues 1,866,272$

309,946$

16.6% 1,937,828$

308,628$

15.9% 1,933,957$

(3,871)$

99.8%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Professional/Contract Services 22,150$ -$ 0.0% 22, 150$ -$ 0.0% 18,457$ 3,693$ 83.3% Utilities 1,844,122$

309,947$

16.8% 1,915,678$

308,628$

16.1% 1,915,500$

178$

100.0%
Total Expenses 1,866,272$

309,947$

16.6% 1,937,828$

308,628$

15.9% 1,933,957$

3,871$

99.8%
Revenues Less Expenditures -$

(1)$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
108

93 Public Works Staffing Budget Summary (General Fund and Non-General Fund)

Program Modifications
Add 1.0 FTE Sanitation Equipment Operator (Street Sweeping) Expenditure: $48,527 (General Fund)

The Sanitation Equipment Operator will support the Street Sweeping Division in expanding its sweeping schedule, enabling more consistent and timely service in high -priority areas such as arterial streets and medians. The additional staffing will also reduce overtime costs associated with alternate day sweeping, which is currently maintained through sustained overtime and an increased workload. The new operator will assume responsibility for an additional sweeping route, improving service quality across key areas of the City. This enhancement will help lower overtime expenses, promote a cleaner and safer environment, and maintain the City’s high standards for public Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Admin Services Manager 1.00 1.00 1.00 1.00 - -$ Administrative Analyst 2.00

2.00 2.00

2.00 - -$
Administrative Assistant 5.00

5.00 5.00

5.00 - -$
Assistant Engineer 4.00

4.00 4.00 4.00

- -$
Associate Engineer 10.00 10.00 10.00 10.00 - -$ Cement Finisher 2.00

2.00 2.00

2.00 - -$
Deputy Public Works Director 1.00

1.00 1.00

1.00 - -$
Deputy Public Works Dir-Ops 1.00

1.00 1.00

1.00 - -$
Engineering Manager 4.00

4.00 4.00 4.00

- -$
Engineering Technician III 2.00

2.00 2.00 2.00

- -$
Equipment Operator 9.00

9.00 9.00

8.00 (1.00)

(91,146)$

Inspector, Public Works-Cap Proj 3.00

3.00 3.00

3.00 - -$

Landscape Mgr/City Arborist 1.00

1.00 1.00

1.00 - -$
Lead Maintenance Worker 16.00 16.00 16.00 16.00 - -$

Maintenance Worker 41.00 42.00 42.00 45.00 3.00

230,993$
Pest Control Technician 1.00

1.00 1.00 1.00 - -$ Policy & Resources Specialist 2.00

2.00 2.00

2.00 - -$
Principal Human Resources Analyst 1.00

1.00 1.00

1.00 - -$
Public Works Director 1.00

1.00 1.00 1.00 - -$ Public Works Supervisor 8.00

8.00 8.00 8.00

- -$
Sanitation Equipment Operator 35.00 35.00 35.00 36.00 1.00

48,527$

Sanitation Services Manager 1.00 1.00 1.00 1.00 - -$ Senior Business Manager 1.00

1.00 1.00

1.00 - -$

Street Operations Manager 1.00

1.00 1.00

1.00 - -$

Supervising Admin Assistant 1.00

1.00 1.00

1.00 - -$

Traffic & Lighting Superv 1.00

1.00 1.00

1.00 - -$
Traffic Painter 2.00

2.00 2.00

2.00 - -$

Traffic Signal Technician 4.00

4.00 4.00

4.00 - -$
Tree Trimmer 5.00

5.00 5.00

5.00 - -$

Waste Management Coordinator 1.00

1.00 1.00 1.00

- -$

Wastewater Technician 7.00 7.00 7.00

7.00 - -$
Water Operations Manager 1.00

1.00 1.00

1.00 - -$
Water Operations Supervisor 3.00 3.00 3.00 3.00 - -$ Water System Operator I 9.00

9.00 9.00

9.00 - -$
Water System Operator II 9.00

9.00 9.00

9.00 - -$
Water System Operator III 12.00 12.00 12.00 12.00 - -$ Total FTE 208.00

209.00

212.00

3.00 188,374$
109

94 cleanliness and operational efficiency. The e xpenditure is partially offset by the projected savings in overtime cost.

Add 1.0 FTE Maintenance Worker

(Illegal Dumping)

Expenditure: $76,9

9 8

(General Fund)

The Maintenance Worker

will
support a new program in the Sanitation Division focused on combating illegal dumping throughout the City. This position will respond to reported illegal dumping incidents and proactively identify and collect unreported discarded items. The Maintenance Wo rker will also update and maintain the illegal dumping hotspot map to ensure thorough coverage, timely cleanup, and improved monitoring of problem areas.

Add 1.0 FTE Maintenance Worker

(
Weed Abatement

)

Expenditure: $76,9

9 8

(General Fund)

The Maintenance Worker

will
support enhanced

weed abatement
in medians and City -owned
parkways. This position will identify and respond to “hotspot” areas where weeds grow more quickly than can be addressed through the regular maintenance schedule, ensuring more frequent upkeep and improving the appearance of publ ic spaces. The Maintenance Worker will also notify residents and business owners of overgrown vegetation along the frontage of their property and advise them of the requirement to take corrective action within 10 business days to comply with the Torrance Municipal Code. Cases that remain unresolved will be referred to C ommunity Development’s

Code
Enforcement for further action.

Delete 1.0

FTE
Equipment Operator and Add 1.0 FTE Maintenance Worker

(Stree

t Mainte
nance)
Expenditure: $(14,149) (General Fund)

The conversion of 1.0 FTE Equipment Operator to 1.0 FTE Maintenance Worker within the Street Maintenance – Asphalt section will provide balanced staffing across all three asphalt crews, each consisting of one (1) Lead Maintenance Worker, two (2) Equipment

Operators, and one (1)
Maintenance Worker.

Aligning the staffing structure in this way will enhance crew efficiency, improve supervision, and optimize overall productivity in street maintenance operations.

Vehicle Maintenance Cost for

Weed Abatement

and Illegal Dumping

Management

Programs

Increase General

Fund

Expenditure

Budget by $87,724

The Public Works Department is requesting to increase the General Fund expenditure

budget by
$87,724 to purchase a Ford Light ning and a Rear -Load Trash Truck. The Ford Lightning vehicle’s 110

95 purchase cost will be $75,000 with an eight -year replacement schedule , and recurring annual cost for replacement contribution is $13,851. The Ford Lightning will be added to the City’s Vehicle Fleet and would support the newly requested Maintenance Worker position related to

weed abatement
.

As well, Rear -Load Trash Truck

purchase
cost will be $400,000 with an eight -year replacement
schedule, and recurring annual cost for replacement contribution is $73,873. The Rear

-
Load Trash
Truck will be added to the City’s Vehicle Fleet and would support the newly requested Maintenance Worker position related to illegal dumping management.

Street Sweeping Cost

Reimbursement from
Sanitation Fund

to General Fund

Increase General Fund

Revenue Budget by $32,028

The Public Works department is requesting to increase General Fund Revenue budget by $32,208, as the requested addition of 1.0 FTE

Sanitation Equipmen
t Operator discussed above will increase the
total street sweeping program cost in General Fund . Since Sanitation Fund

covers
a portion of this
cost, it will increase

estimated reimbursement from Sanitation Fund to General Fund .

111

96 Transi t

Mission Statement

The mission of the Torrance Transit System is to provide safe, reliable, 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 mo nitoring 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.

Department Organization

112

97 Transit Operating Budget Summary (Transit Fund)

As of September 30, 2025

, a total of

$3.3
million or 8.6% of FY25-26

budgeted revenues have been
collected. During the same period ending

September 30, 2024
, the City realized

$8.6
million in
revenues, representing 24.3

of the

FY24
-25

revenue budget
. This

decrease

is driven by
a

decrease

in the

Intergovernmental
classification and is partially offset by an increase in

the Charges for
Services and Operating Transfers In revenue classifications. As shown above, year-to-date receipts in the

Intergovernmental
classification are down $5.6 million primarily due to

decreases
from
Measure R and Measure M. Overall, it is projected that the

revenue budget

will
fall short of budget by
$1.0

million
.

As of this Budget Review Report, the Transit Department has $31.1

million in unspent Federal Transit
Administration grants dating back to 2009. Additionally, the Transit Department has a total of $74.0 million in unspent grants from other sources.

On the expenditure side,

the
Transit Fund realized expenditures of

10.7 million or 23.0% of the
FY25-26

budget as of

September 30, 2025

During the same period ending

September 30, 2024

, the
City expended $8.5 million or 21.2% of the

FY24
-25

expenditure budget. The increase is primarily
in Salaries and Employee Benefits classification, which reflected increase in approved pay and benefit adjustments and CalPERS rates, as well as

Other Operating Transfers Out
due to increase
in transfers to

the
Transit Capital Fund.

The
projected surplus in the

Salaries and Employee
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 1,718,000$ 547,265$ 31.9% 1, 792,387$ 478,667$ 26.7% 1,560,420$ (231,967)$ 87.1% Intergovernmental 29,545,571$

6,943,746$

23.5% 30,995,342$

1,363,295$

4.4% 30,085,200$

(910,142)$

97.1%
Charges for Services 940,001$

312,933$

33.3% 1,718,200$

423,700$

24.7% 1,908,170$

189,970$

111.1%
Other Revenues 30,000$

115$

0.4% 2,500$

42,332$

1693.3% 2,260$

(240)$

90.4%
Operating Transfers In 3,000,000$

756,000$

25.2% 4,000,000$

1,008,000$

25.2% 4,000,000$

100.0%
Total Revenues 35,233,572$ 8,560,059$

24.3% 38,508,429$ 3,315,994$

8.6% 37,556,050$ (952,379)$

97.5%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 23,152,327$ 4,860,143$ 21.0% 24, 807,618$ 5,895,838$ 23.8% 23,740,283$ 1,067,335$ 95.7% Materials, Supplies & Maintenance 3,593,905$

642,766$

17.9% 3,497,160$

545,596$

15.6% 3,453,048$

44,112$

98.7%
Materials Reimbursements (250,000)$

(5,128)$

2.1% (250,000)$

(4,333)$

1.7% (250,000)$

100.0%
Parts, Fuel & Lubricants Inventory Purcha 1,811,250$ 310,026$ 17.1% 1,811,250$ 241,967$ 13.4% 1,542,828$ 268,422$ 85.2% Parts, Fuel & Lubricants Contra (1,811,250)$

(310,026)$

17.1% (1,811,250)$

(241,967)$

13.4% (1,542,828)$

(268,422)$

85.2%
Professional/Contract Services 2,593,196$

568,924$

21.9% 4,647,942$

353,855$

7.6% 4,443,302$

204,640$

95.6%
Training, Travel & Membership Dues 125,037$

23,865$

19.1% 121,289$

56,903$

46.9% 147,018$

(25,729)$

121.2%
Depreciation and Amortization 3,238,219$

641,845$

19.8% 3,401,518$

536,318$

15.8% 2,145,270$

1,256,248$

63.1%
Liabilities, Settlements & Insurance 217,639$

0.0% -$

0.0%
Utilities 233,466$

55,482$

23.8% 344,100$

73,944$

21.5% 303,400$

40,700$

88.2%
Interdepartmental Charges 7,172,359$

1,704,147$

23.8% 8,712,352$

1,985,165$

22.8% 7,999,534$

712,818$

91.8%
Capital Acquisitions 50,000$

0.0% 50,000$

20,672$

41.3% 50,000$

100.0%
Asset Contra Account (50,000)$

0.0% (50,000)$

(20,672)$

41.3% (50,000)$

100.0%
Other Operating Transfers Out 70,154$

22,858$

32.6% 1,269,940$

1,254,986$

98.8% 1,269,940$

100.0%
Total Expenses 40,146,302$ 8,514,902$

21.2% 46,551,919$ 10,698,272$ 23.0% 43,251,795$ 3,300,124$

92.9%
Revenues Less Expenditures (4,912,730)$

45,157$

(8,043,490)$

(7,382,278)$

(5,695,745)$

2,347,745$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
113

98 Benefits classification is primarily driven by vacancy savings because of 21.75 FTE vacancies as of September 30, 2025

While the department has seen progress in filling these vacancies, it is still projected that

$1.
1 million in salary savings will be realized

at
fiscal year-end. The Depreciation
and Amortization classification has a projected surplus of

$1.3 million
due to the delay in delivery
of vehicle purchases. Overall, the Transit Fund is projected to end the year with a

5.7 million deficit.

This fund’s budget was originally adopted with a planned use of fund balance of $7.8 million.

Transit Staffing Budget Summary (Non-General Fund)

Job Classification
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Q1 Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
Administrative Analyst 4.00 4.00 4.00 4.00 - -$ Administrative Assistant 4.00

4.00 4.00

4.00 - -$

Apprentice Relief Bus Operator 3.75

3.75 3.75

3.75 - -$
Bus Operator 93.00 105.00 105.00 105.00 - -$ Custodian 1.00

- - - - -$ Customer Service Rep 2.80

2.80 2.80 2.80 - -$ Deputy Transit Director 1.00

1.00 1.00

1.00 - -$
Driver/Clerk, Delivery 0.50

0.50 0.50 - (0.50) (36,168)$

Facilities Service Supervisor 1.00

1.00 1.00 1.00 - -$ Fleet Services Manager 1.00

1.00 1.00

1.00 - -$
Fleet Services Supervisor 2.00

2.00 2.00

2.00 - -$
Human Resources Technician 1.00

- - - - -$ Info Technology Analyst 1.00

1.00 1.00

1.00 - -$
Intern 2.00

2.00 2.00 2.00 - -$

Maintenance Worker 1.00

1.00 1.00 1.00 - -$

Principal Human Resources Analyst 1.00

- - - - -$

Relief Bus Operator 17.25 17.25 17.25 17.25 - -$ Senior Business Manager 3.00

3.00 3.00

3.00 - -$
Staff Assistant 2.00

2.00 2.00 2.00

- -$
Storekeeper 1.50

1.50 1.50

1.50 - -$
Storekeeper, Auto Parts 1.00

1.00 1.00 1.00

- -$

Systems Analyst 1.00 1.00 1.00 1.00 - -$ Transit Director 1.00

1.00 1.00

1.00 - -$

Transit Dispatcher 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 - -$

Transit Manager - Operations 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 - -$

Transit Marketing Specialist 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 - -$ Transit Training Coordinator 1.00

1.00 1.00

1.00 - -$

Total FTE 196.80

205.80

205.30

(0.50) (36,168)$
114

99 Program Modifications
Fleet Services Staffing Realignment
Delete 0.5 FTE Driver/Clerk, Delivery
Expenditure: $(36,168

) (

Transit

Fund)

The requested deletion of 0.5 FTE Driver/Clerk, Delivery position is a result of the General Services Department’s Fleet Services staff realignment discussed in the Fleet Services Fun d section, as the position is equally shared by the General Services

and Transit departments.

115

100

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

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

As of September 30, 2025,

t
he Non-Departmental budget recorded expenditures of

24.0 million, or
151

.0%
of its FY25-26 budget. For the same period ending September 30, 202

4, expenditures totaled
$22

.0
million, or

179.2

%
of the FY24 -25 expenditure budget. This increase is primarily due to increase in the Debt Service and Other Operating Transfers Out classifications. The Debt Service

classification increased due to the increases for the

2020

Lease Revenue Bonds. Other Operating
Transfers Out increased due to Transfers to

the Capital
Improvement Fund by $ 10.9 million ,
partially offset by decrease d Transfers to the CEPPT Fund

by
$7.1 million . Overall, Non

-
Departmental expenditure

s
are projected to generate deficit of $218,000 at year

-
end primarily due
to a surplus of

$677,000

in Debt Service Reimbursement s and a deficit of

$872,000

in
Reimbursements-Indirect Costs

The Debt Service Reimbursements

classification reflects
payroll-related reimbursements recorded through the City’s payroll interface.

As of September 30,
2025, reimbursements total $(5.3) million , with year -end activity projected at

20.5) million
resulting in a

projected surplus of approximately

$677,000

The

Reimbursements

–

Indirect Costs
classification reflects cost ‐allocation recoveries from City enterprise and internal service

funds,
including Water, Airport, Transit,

Section 8
Housing, Sanitation, Sewer, Fleet, and Self -Insurance.

These reimbursements offset centrally budgeted administrative and overhead costs recorded in the General Fund. As of September 30, 2025, reimbursements total

2.3) million compared to a budget
of $(10.7) million. Based on year-to-date activity, year-end reimbursements are projected at

9.9)
million, resulting in a projected deficit of approximately $872,000

Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 199,717$ 52,299$ 26.2% 199,717$ 57,748$ 28.9% 199,717$ -$ 100.0% Materials, Supplies & Maintenance 754,044$

2,528$

0.3% 1,741,851$

7,113$

0.4% 1,741,851$

100.0%
Materials Reimbursements (5,411)$

(1,337)$

24.7% (5,500)$

(1,745)$

31.7% (5,500)$

100.0%
Professional/Contract Services 984,302$

114,940$

11.7% 1,336,901$

291,004$

21.8% 1,336,901$

100.0%
Training, Travel & Membership Dues 488,644$

236,626$

48.4% 590,959$

364,453$

61.7% 613,959$

(23,000)$

103.9%
Debt Service 23,126,738$

14,030,290$

60.7% 23,631,682$

14,635,917$

61.9% 23,631,682$

100.0%
Debt Service Reimbursements (19,341,206)$

(5,020,407)$

26.0% (19,862,721)$

(5,331,037)$

26.8% (20,540,000)$

677,279$

103.4%
Capital Acquisitions -$

0.0% -$

0.0%
Asset Contra Account -$

0.0% -$

0.0%
Bad Debts and Other Losses 1,000$

0.4% 1,000$

0.3% 1,000$

100.0%
Reimbursements-Indirect Costs (9,147,553)$

(2,117,165)$

23.1% (10,741,685)$

(2,295,984)$

21.4% (9,869,867)$

(871,818)$

91.9%
Other Operating Transfers Out 15,201,524$

14,676,401$

96.5% 19,002,973$

16,269,827$

85.6% 19,002,973$

100.0%
Total Expenses 12,261,799$ 21,974,179$ 179.2% 15,895,177$ 23,997,299$ 151.0% 16,112,716$ (217,539)$

101.4%
Prior Year FY2024-25 Current Year FY2025-26
116

101

Community Programs (General Fund - Operating Fund)

Expenditures related to community outreach programs and events are classified under various line items above. The

above table shows
the amended program budgets and actual expenditures
through September 30, 2025. The Tournament of Roses Float

expenditure increased

by
$175,000
due to the timing of payment as well as an increase in the donation to

the
Torrance Rose Float
Association, compared to year prior.

Discover Torrance TBID & Downtown Torrance
BID
expenditure increased by $45,000

due to

the timing of payment.

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

amended budget in FY25 -26 for $23.6 million is fairly consistent

with

FY24-25 amended budget. This 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 clas sification. 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.

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

As of September 30, 2025,

Indirect Cost Reimbursements

to the General Fund totaled $2.3 million,
or 21.4

%
of the expenditure

FY25
-26 budget. For the same period ending September 30, 2024, Programs
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Artesia Lights 36,000$ -$ 0.0% 36,000$ -$ 0.0% 36,000$ -$ 100.0% TOCA Subsidy 74,400$

74,400$

100.0% 74,400$

74,400$

100.0% 74,400$

100.0%
Sister City Activities 10,000$

0.0% 10,000$

100.0%
Friendship City Activities 70,000$

4,436$

6.3% 70,000$

2,175$

3.1% 70,000$

100.0%
Armed Forces Parade 323,890$

0.0% 323,890$

722$

0.2% 323,890$

100.0%
Tournament of Roses Float 127,400$

0.0% 177,000$

175,000$

98.9% 177,000$

100.0%
Discover Torrance TBID & Downtown Torrance BID 80,000$

0.0% 80,000$

45,000$

56.3% 80,000$

100.0%
Fourth of July Celebration 50,000$

41,028$

82.1% 50,000$

47,705$

95.4% 50,000$

100.0%
Youth in Government Activities 3,200$

0.0% 3,200$

100.0%
Community Clean Up 10,000$

640$

6.4% 10,000$

290$

2.9% 10,000$

100.0%
City Yard Open House -$

0.0% -$

0.0%
Total Expenses 784,890$

120,504$

15.4% 834,490$

345,292$

41.4% 834,490$

100.0%
Prior Year FY24-25 Current Year FY25-26
Fund
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Airport Fund (339,083)$ (74,841)$ 22.1% (379,796)$ (84,710)$ 22.3% (325,000)$ (54,796)$ 85.6% Fleet Fund (925,358)$

(221,892)$

24.0% (1,016,630)$

(208,958)$

20.6% (310,000)$

(706,630)$

30.5%
Sanitation Fund (1,024,593)$

(232,110)$

22.7% (1,132,535)$

(228,254)$

20.2% (1,132,535)$

100.0%
Section 8 Housing Fund (156,072)$

(37,395)$

24.0% (166,013)$

(43,009)$

25.9% (173,200)$

7,187$

104.3%
Self-Insurance Fund (235,890)$

(49,571)$

21.0% (305,657)$

(66,139)$

21.6% (900,893)$

595,236$

294.7%
Sewer Fund (441,116)$

(100,223)$

22.7% (479,539)$

(120,281)$

25.1% (479,539)$

100.0%
Transit Fund (4,731,897)$

(1,094,031)$

23.1% (5,835,816)$

(1,226,496)$

21.0% (5,122,998)$

(712,818)$

87.8%
Water Fund (1,293,544)$

(307,102)$

23.7% (1,425,699)$

(318,136)$

22.3% (1,425,699)$

100.0%
Total Indirect Cost (9,147,553)$

(2,117,165)$

23.1% (10,741,685)$

(2,295,984)$

21.4% (9,869,864)$

(871,821)$

91.9%
Prior Year FY24-25 Current Year FY25-26
117

102

reimbursements totaled $2.1 million, or 23.1% of the FY24-25 expenditure budget. The City charges certain Enterprise, Non -major Governmental Funds, and Internal Service Funds an

indirect cost

allocation to support general government services that benefit their

daily operation
s. For FY25-26,
this charge is assessed at a rate of 29.06% of a defined subset of Salaries & Employee Benefits expenditures.

Year
-end reimbursements are projected to

be
approximately $872,000

below budget
due to lower reimbursable salary and benefit costs across contributing funds , primarily due to vacancy savings.

Other Operating Transfers Out (General Fund - Operating Fund)

As of September 30, 2025,

expenditures totaled
$16.3

million, or 85.6

%
of the FY25-26 expenditure
budget. For the same period ending September 30, 2024, expenditures totaled $14.7 million, or

96.5 %
of the FY24 -25 expenditure budget. This classification reflects transfers made

by
the City’s
General Fund-Operating Fund to support activities in other City

funds
and is projected to be fully
expended by year-end.

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

As of September 30, 2025,

expenditures totaled
$10.6

million, or 43.2

%
of the FY25-26 expenditure
budget. For the same period ending September 30, 2024, expenditures totaled $16.7

million, or

64.9 %
of the FY24 -25 expenditure budget. This classification is projected to be fully expended by year-end.

Receiving Fund(s) Description
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Capital Project Funds Capital Improvement Projects 2,456,954$ 2,206,954$ 89.8% 13,104,375$ 13,104,375$ 100.0% 13,104,375$ -$ 100.0% General Fund - Restricted CEPPT Contribution 9,360,267$

9,360,267$

100.0% 2,254,400$

2,254,400$

100.0% 2,254,400$

100.0%
General Fund - Assigned Asset Replacement Contributions 2,987,362$

2,987,362$

100.0% 3,237,134$

809,283$

25.0% 3,237,134$

100.0%
Street Light District Fund Street Lighting District Assessment 30,109$

30,109$

100.0% 30,110$

7,527$

25.0% 30,110$

100.0%
Sanitation Fund
Citywide Refuse Collection
Reimbursement; Senior Discount
Subsidy 314,201$ 78,551$ 25.0% 316,739$ 79,188$ 25.0% 316,739$ -$ 100.0% Sewer Fund
Senior/Low-Income Wastewater
Discount Subsidy 34,347$ 8,586$ 25.0% 35,827$ 8,958$ 25.0% 35,827$ -$ 100.0% Water Fund
Senior/Low-Income Water
Discount Subsidy 18,284$ 4,572$ 25.0% 24,388$ 6,096$ 25.0% 24,388$ -$ 100.0% Total Transfers 15,201,524$ 14,676,401$ 96.5% 19,002,973$ 16,269,827$ 85.6% 19,002,973$ -$

0.0%
Prior Year FY24-25 Current Year FY25-26
Receiving Fund(s) Description
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Amended
Budget
July-
September
Actuals
% of
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
General Fund - Operating Fund City Manager Positions Offset -$ -$ 0.0% 232,266$ 27,808$ 12.0% 232,266$ -$ 100.0% General Fund - Operating Fund Police Position Offset 9,728,461$

2,451,572$

25.2% 10,966,238$

2,763,492$

25.2% 10,966,238$

100.0%
General Fund - Operating Fund Fire Positions Offset 2,121,088$

534,514$

25.2% 2,214,815$

558,133$

25.2% 2,214,815$

100.0%
General Fund - Operating Fund CIT Positions Offset 200,415$

50,505$

25.2% 205,520$

51,791$

25.2% 205,520$

100.0%
General Fund - Assigned
General Fund Reserve
Contribution 5,000,000$ 5,000,000$ 100.0% 5,000,000$ 1,250,001$ 25.0% 5,000,000$ -$ 100.0% Capital Project Funds Capital Improvement Projects 8,620,160$

8,620,160$

100.0% 5,978,715$

5,978,715$

100.0% 5,978,715$

100.0%
Total Transfers 25,670,124$ 16,656,751$ 64.9% 24,597,554$ 10,629,940$ 43.2% 24,597,554$ -$

0.0%
Prior Year FY24-25 Current Year FY25-26
118

103

General Fund-Restricted Fund Operating Budget

As of

September 30, 2025

, a total of

4.2 million or 95.2

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

11.9 million in
revenues, representing

119

.6%
of the

FY24
-25

revenue budget. Overall, the

General Fund
-Restricted
Fund is projected to end the fiscal year with a revenue deficit of

$3,100

On the expenditure side,

th
e fund recorded $25,000

in expenditures or

0.3%
of the

FY25
-26
expenditure budget

as of

September 30, 2025.

During the same period ending

September 30, 2024

,
expenditures totaled $33,000

or 19.8% of the

FY24
-25

expenditure budget. The expenditure budget
is projected to end the

fiscal
year with a modest surplus of

about
$14,000

Taking both re
venues
and expenditures into account, the

fund
is projected to finish the year with an overall operating deficit of approximately $3.0 million.

This fund’s budget was originally adopted with a planned use of fund balance of $2.9 million.

General Fund-Assigned Fund Operating Budget

As of

September 30, 2025

, a total of

2.1 million or 29.0

%
of FY25-26

budgeted revenues have been
collected. During the same period ending September 30, 2024, the City realized

7.9 million in
revenues, representing 100.0

%
of the

FY24
-25

revenue budget. Overall, the General Fund-Assigned
Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 350,000$ -$ 0.0% 247, 000$ 6,026$ 2.4% 247,000$ -$ 100.0% Use of Money and Property 248,058$

2,554,447$

1029.8% 1,915,179$

1,945,670$

101.6% 1,912,080$

(3,099)$

99.8%
Operating Transfers In 9,360,267$

9,360,267$

100.0% 2,254,400$

2,254,400$

100.0% 2,254,400$

100.0%
Total Revenues 9,958,325$

11,914,714$ 119.6% 4,416,579$

4,206,096$

95.2% 4,413,480$

(3,099)$

99.9%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Debt Service 15,000$ 6,958$ 46.4% 36, 652$ 8,530$ 23.3% 36,000$ 652$ 98.2% Capital Acquisitions 122,675$

12,532$

10.2% 75,000$

0.0% 63,187$

11,813$

84.2%
Other Expenditures 28,500$

13,480$

47.3% 73,500$

16,526$

22.5% 72,000$

1,500$

98.0%
Other Operating Transfers Out -$

0.0% 7,286,337$

100.0%
Total Expenses 166,175$

32,970$

19.8% 7,471,489$

25,056$

0.3% 7,457,524$

13,965$

99.8%
Revenues Less Expenditures 9,792,150$

11,881,744$ (3,054,910)$

4,181,040$

(3,044,044)$

10,866$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
Revenues
Amended
Budget
July -
September
Budget
Received
Amended
Budget
July -
September
Budget
Received
Annual
Projected
Projected
Surplus/(Defic
Projected
% of
Operating Transfers In 7,870,500$ 7,870,500$ 100.0% 7, 111,091$ 2,059,284$ 29.0% 8,237,134$ 1,126,043$ 115.8% Total Revenues 7,870,500$

7,870,500$

100.0% 7,111,091$

2,059,284$

29.0% 8,237,134$

1,126,043$

115.8%
Expenses
Amended
Budget
July -
September
Budget
Expended
Amended
Budget
July -
September
Budget
Expended
Annual
Projected
Projected
Surplus/(Defic
Projected
% of
Capital Acquisitions 1,435,913$ 108,237$ 7.5% 2, 517,299$ 20,211$ 0.8% 2,517,299$ -$ 100.0% Other Operating Transfers Out 5,000,000$

5,000,000$

100.0% 5,000,000$

1,250,001$

25.0% 5,000,000$

100.0%
Total Expenses 6,435,913$

5,108,237$

79.4% 7,517,299$

1,270,212$

16.9% 7,517,299$

100.0%
Revenues Less Expenditures 1,434,587$

2,762,263$

(406,208)$

789,072$

719,835$

1,126,043$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
119

104

Fund is projected to end the fiscal year with a revenue surplus of $1.1 million, due to an increase in Operating Transfers In

the

Asset

Replacement Fund.

On the expenditure side,

this fund realized
expenditures of

1.3 million or 16.9% of the

FY25
-26
expenditure budget

as of

September 30, 2025.

During the same period ending

September 30, 2024

,
the City

expended

5.1 million

80 .0%

of the

FY24
-25

expenditure budget. This

fund

is projected
to be fully expended by year -end. This fund’s budget was originally adopted with a deficit of $107,000.

Debt Service Fund Operating Budget

The Debt Service fund accounts for the City’s debt service obligations, with l ease payments transferred from the General Fund

to support scheduled debt payments.

As of September 30, 2025,
the fund recorded revenues of $14.6 million, or

61.9%
of its FY25-26 budget. For the same period
ending September 30, 2024,

revenues
totaled $14.0 million, or

60.7%
of the FY24 -25 revenue
budget. The Debt Service Fund

is projected

to fully expend its amended budget
and remain balanced
at year-end.

Revenues
Amended
Budget
July -
September
Actuals
Budget
Received
Amended
Budget
July -
September
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 23,107,338$ 14,030,910$ 60.7% 23,625,753$ 14,636,140$ 61.9% 23,625,753$ -$ 100.0% Total Revenues 23,107,338$ 14,030,910$ 60.7% 23,625,753$ 14,636,140$ 61.9% 23,625,753$ -$

100.0%
Expenses
Amended
Budget
July -
September
Actuals
Budget
Expended
Amended
Budget
July -
September
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Debt Service 23,107,338$ -$ 0.0% 23,625,753$ -$ 0.0% 23,625,753$ -$ 100.0% Total Expenses 23,107,338$ -$

0.0% 23,625,753$ -$

100.0%
Revenues Less Expenditures -$

14,030,910$ -$

14,636,140$ -$

Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
120

CAPITAL

IMPROVEMENT
PLAN
First Quarter Budget Review Report
121

105

Capital Improvement Plan
The City of Torrance develops a five -year Capital Improvement Plan (CIP) budget, with annual adjustments made during each budget cycle. Although the program spans multiple years, only funds for the current year (FY25

-
26) were 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.

During the first fiscal
quarter ended

September 30, 2025, the City has

spent
$3.7 million in capital investments.

CIP Summary by Project Type

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. 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.

The City

Council
adopted a CIP budget 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

. T
he City

also
includes a section titled Operating
Projects in the City’s Ca pital Improvement Plan. These are projects that are one

-
time costs related
Capital Project Type
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Parks 39,393,245 1,255,755 197,013 37,940,478 Facilities 58,085,781 4,747,760 1,048,785 52,289,236 IT Infrastructure 395,000 - - 395,000 Public Right of Way 118,214,464 42,803,464 841,040 74,569,960 Sewer/Water Utilities 43,436,234 18,099,208 18,354 25,318,672 Storm Drain/Basins 17,992,195 8,906,844 325,539 8,759,812 Operating Project 26,216,049 10,238,689 1,122,572 14,854,788 Other 4,812,625 455,405 190,373 4,166,847 Total Expenditures 308,545,593$ 86,507,126$ 3,743,675$ 218,294,792$ 122

106

to a department’s operations, 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).

Lastly, 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 budge t. 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.

123

107

Parks
The following section summarizes the planned capital investments at parks across the City, summarized by location. The City

has
spent $197,000 as of September

30 , 2025. The following
projects are ongoing in order to refurbish and improve our park’s playgrounds, bathrooms, recreation areas and other park amenities.

Individual Project Details

Project Location
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Alta Loma Park PRK0001 945,000 - - 945,000 Columbia Park PRK0002 10,221,933 395,692 4,159 9,822,082 Delthorne Park PRK0004 404,956 331,291 19,863 53,803 Discovery Park PRK0006 136,750 132,103 - 4,647 El Nido Park PRK0007 11,429,997 49,997 - 11,380,000 Guenser Park PRK0012 500,000 12,670 22,620 464,711 La Carretera Park PRK0014 164,780 149,800 - 14,980 Lago Seco Park PRK0017 146,358 10,450 122,781 13,127 Madrona Marsh Nature Center PRK0034 90,000 - 9,860 80,140 Paradise Park PRK0022 9,678,903 79,492 5,970 9,593,442 Torrance Park PRK0030 268,440 - - 268,440 Walteria Park PRK0032 1,700,000 - - 1,700,000 Wilson Park PRK0033 3,706,128 94,261 11,761 3,600,106 Total Expenditures 39,393,245$ 1,255,755$ 197,013$ 37,940,478$ Alta Loma Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Replace Playground Equipment $945,000 - - $945,000 Total Expenditures 945,000$ -$ -$ 945,000$ Funding Source(s)
Measure A $720,000 - - $720,000 Measure SST Fund $225,000 - - $225,000 Total Expenditures 945,000$ -$ -$ 945,000$ 26126 Delos Drive,Torrance, CA 90505 | District 6
Alta Loma Park
124

108

Columbia Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Construct Dog Park 60,000 12,075 - 47,925 Refurbish Bocce Courts 161,933 143,943 - 17,990 Renovate Picnic Shelters - - - - Renovate Restrooms - - - - Walking Path Replacement - - - - World War ll Camp Wall Monument 9,000,000 199,736 4,159 8,796,105 WWII Memorial Supporting Infrastructure
Improvements 1,000,000 3 9,938 - 960,062 Total Expenditures 10,221,933$ 395, 692$ 4,159$ 9,822,082$ Funding Source(s)
General Fund 5,000,000 - - 5,000,000 Measure SST Fund 221,933 156,018 - 65,915 Other Grants 5,000,000 239,674 4,159 4,756,167 Total Expenditures 10,221,933$ 395, 692$ 4,159$ 9,822,082$ Columbia Park
4045 190th Street,Torrance, CA 90504 | District 3
Delthorne Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Renovate Park Restrooms 404,956 331,291 19,863 53,803 Total Expenditures 404,956$ 331,291$ 19,863$ 53,803$ Funding Source(s)
Measure SST Fund 404,956 331,291 19,863 53,803 Total Expenditures 404,956$ 331,291$ 19,863$ 53,803$ Delthorne Park
3401 Spencer Street,Torrance, CA 90503 | District 3
Discovery Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Urban Tree Project 136,750 132,103 - 4,647 Total Expenditures 136,750$ 132,103$ -$ 4,647$ Funding Source(s)
Other Grants 136,750 132,103 - 4,647 Total Expenditures 136,750$ 132,103$ -$ 4,647$ Discovery Park
22526 Ocean Ave,Torrance, CA 90503 | District 5
125

109

El Nido Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Recreational Building Roof Repair 49,997 49,997 - - Renovate Park 11,030,000 - - 11,030,000 Replace Playground Equipment 350,000 - - 350,000 Total Expenditures 11,429,997$ 49,997$ -$ 11,380,000$ Funding Source(s)
Measure A 400,000 - - 400,000 Measure SST Fund 399,997 49,997 - 350,000 Other Grants 10,630,000 - - 10,630,000 Total Expenditures 11,429,997$ 49,997$ -$ 11,380,000$ El Nido Park
18301 Kingsdale Avenue,Redondo Beach, CA 90278 | District 3 Guenser Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Walking Path Replacement 500,000 12,670 22,620 464,711 Total Expenditures 500,000$ 12,670$ 22,620$ 464,711$ Funding Source(s)
Measure A 302,250 - - 302,250 Measure SST Fund 197,750 12,670 22,620 162,461 Total Expenditures 500,000$ 12,670$ 22,620$ 464,711$ Guenser Park
17800 Gramercy Place,Torrance, CA 90504 | District 1
La Carretera Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Block Wall Replacement 164,780 149,800 - 14,980 Total Expenditures 164,780$ 149,800$ -$ 14,980$ Funding Source(s)
2016 Certificate of Participation 149,800 149,800 - - General Fund 14,980 - - 14,980 Total Expenditures 164,780$ 149,800$ -$ 14,980$ La Carretera Park
2040 186th St,Torrance, CA 90503 | District 1
126

110

Lago Seco Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Sewer Line Replacement 146,358 10,450 122,781 13,127 Total Expenditures 146,358$ 10,450$ 122,781$ 13,127$ Funding Source(s)
2016 Certificate of Participation 133,231 10,450 122,781 - General Fund 13,127 - - 13,127 Total Expenditures 146,358$ 10,450$ 122,781$ 13,127$ 3920 235th Street,Torrance, CA 90505 | District 5
Lago Seco Park
Madrona Marsh Nature Center
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Replace Sump Pump 90,000 - 9,860 80,140 Total Expenditures 90,000$ -$ 9,860$ 80,140$ Funding Source(s)
Measure SST Fund 90,000 - 9,860 80,140 Total Expenditures 90,000$ -$ 9,860$ 80,140$ Madrona Marsh Nature Center
3201 Plaza del Amo, Torrance, CA 90503 | District 3
Paradise Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Design, Site work, Utilities, and Irrigation 6,076,303 - - 6,076,303 Redesign/Replace Picnic Shelter & Storage 430,000 79,492 5,970 344,539 Redesign/Replace Recreation Center - - - - Redesign/Replace Restrooms 2,000,000 - - 2,000,000 Replace Playground Equipment 1,172,600 - - 1,172,600 Total Expenditures 9,678,903$ 79,492$ 5,970$ 9,593,442$ Funding Source(s)
Donations 100,000 - - 100,000 Measure A 700,000 - - 700,000 Measure SST Fund 7,078,903 79,492 5,970 6,993,442 Park Equipment Replacement Fund 300,000 - - 300,000 Parks & Rec Facilities Fund 300,000 - - 300,000 Parks & Rec Open Space Fund 1,200,000 - - 1,200,000 Total Expenditures 9,678,903$ 79,492$ 5,970$ 9,593,442$ Paradise Park
5006 Lee Street,Torrance, CA 90503 | District 2
127

111

Torrance Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Torrance Park Revitalization 268,440 - - 268,440 Total Expenditures 268,440$ -$ -$ 268,440$ Funding Source(s)
Other Grants 268,440 - - 268,440 Total Expenditures 268,440$ -$ -$ 268,440$ Torrance Park
2001 Santa Fe Avenue,Torrance, CA 90501 | District 4
Walteria Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Reconstruct Playing Courts 1,700,000 - - 1,700,000 Total Expenditures 1,700,000$ -$ -$ 1,700,000$ Funding Source(s)
Measure SST Fund 1,700,000 - - 1,700,000 Total Expenditures 1,700,000$ -$ -$ 1,700,000$ Walteria Park
3855 242nd Street,Torrance, CA 90505 | District 6
Wilson Park
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Construct Pickleball Courts 1,526,119 77 - 1,526,042 Redevelopment of Building 8 902,865 40,847 4,192 857,826 Sports Field Conversion 342,000 - 7,569 334,431 Street Frontage Improvements 935,144 53,336 - 881,807 Total Expenditures 3,706,128$ 94,261$ 11,761$ 3,600,106$ Funding Source(s)
General Fund 2,307,476 40,924 4,192 2,262,360 Measure SST Fund 206,652 - - 206,652 Other Grants 342,000 - 7,569 334,431 Parks & Rec Open Space Fund 850,000 53,336 - 796,664 Total Expenditures 3,706,128$ 94,261$ 11,761$ 3,600,106$ Wilson Park
2200 Crenshaw Boulevard,Torrance, CA 90501 | District 4 128

112

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

has

spent

$1
.0
million as of September 30, 2025. The following projects are ongoing in order to maintain and modernize these facilities to ensure that our community can continue to benefit from the valuable services that they provide.

Individual Project Details

Project Location
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Bartlett Senior Center FAC0019 100,600 52,878 42,413 5,310 Dee Hardison Sports Center FAC0030 300,000 - - 300,000 Fire Station 1 FAC0010 1,878,723 456,809 8,166 1,413,748 Fire Station 4 FAC0013 85,618 85,618 - - Herma Tillim Senior Center FAC0023 970,663 - - 970,663 Katy Geissert Civic Center Library FAC0001 60,500 25,611 - 34,889 Russ Nolte Annex FAC0028 142,731 132,888 - 9,843 Torrance City Hall FAC0007 4,891,397 2,430,144 804,095 1,657,158 Torrance City Yard FAC0021 2,690,000 159,923 46,955 2,483,121 Torrance Cultural Arts Center FAC0009 554,616 182,377 - 372,239 Torrance Municipal Airport FAC0017 8,131,158 744,885 76,550 7,309,723 Torrance Police Department FAC0016 1,239,000 163,032 70,607 1,005,361 Torrance Regional Transit Center FAC0022 36,545,800 313,595 - 36,232,205 Torrance Southern Tarplant Preserve FAC0020 494,975 - - 494,975 Total Expenditures 58,085,781$ 4,747,760$ 1,048,785$ 52,289,236$ Bartlett Senior Center
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Second Story Walk Deck Repair 100,600 52,878 42,413 5,310 Total Expenditures 100,600$ 52,878$ 42,413$ 5,310$ Funding Source(s)
Measure SST Fund 100,600 52,878 42,413 5,310 Total Expenditures 100,600$ 52,878$ 42,413$ 5,310$ Bartlett Senior Center
1318 Cravens Ave, Torrance, CA 90501 | District 4
129

113

Dee Hardison Sports Center
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Renovate Center Facilities 300,000 - - 300,000 Total Expenditures 300,000$ -$ -$ 300,000$ Funding Source(s)
Measure SST Fund 300,000 - - 300,000 Total Expenditures 300,000$ -$ -$ 300,000$ Dee Hardison Sports Center
2400 Jefferson St, Torrance, CA 90501 | District 4
Fire Station 1
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Alternate EOC 933,334 47,712 8,166 877,456 Renovate Fire Station 424,223 264,308 - 159,915 Replace Audio/Visual Equipment in Training
Room 54,500 54,470 - 30 Replace Generator 466,666 90,319 - 376,347 Total Expenditures 1,878,723$ 456,809$ 8,166$ 1,413,748$ Funding Source(s)
2016 Certificate of Participation 264,308 264,308 - - General Fund 54,500 54,470 - 30 Measure SST Fund 859,915 38,432 2,042 819,442 Other Grants 700,000 99,599 6,125 594,276 Total Expenditures 1,878,723$ 456,809$ 8,166$ 1,413,748$ Fire Station 1
1701 Crenshaw Blvd, Torrance, CA 90501 | District 3
Fire Station 4
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Renovate Fire Station 85,618 85,618 - - Total Expenditures 85,618$ 85,618$ -$ -$ Funding Source(s)
2016 Certificate of Participation 56,887 56,887 - - Measure SST Fund 28,730 28,730 - - Total Expenditures 85,618$ 56,887$ -$ -$ 5205 C. Mayor, Torrance, CA 90505 | District 5
Fire Station 4
130

114

Herma Tillim Senior Center
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Renovate Center Facilities 970,663 - - 970,663 Total Expenditures 970,663$ -$ -$ 970,663$ Funding Source(s)
Parks & Rec Open Space Fund 970,663 - - 970,663 Total Expenditures 970,663$ -$ -$ 970,663$ Herma Tillim Senior Center
3612 Artesia Blvd, Torrance, CA 90504 | District 1
Katy Geissert Civic Center Library
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Replace Audio/Visual Equipment in Meeting
Rooms 60,500 2 5,611 - 34,889 Total Expenditures 60,500$ 25,611$ -$ 34,889$ Funding Source(s)
General Fund 60,500 25,611 - 34,889 Total Expenditures 60,500$ 25,611$ -$ 34,889$ Katy Geissert Civic Center Library
3031 Torrance Blvc, Torrance, CA 90503 | District 3
Katy Geissert Civic Center Library
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Renovate Annex Building 142,731 132,888 - 9,843 Total Expenditures 142,731$ 132,888$ -$ 9,843$ Funding Source(s)
Measure SST Fund 142,731 132,888 - 9,843 Total Expenditures 142,731$ 132,888$ -$ 9,843$ Russ Nolte Annex
1339 Post Ave, Torrance, CA 90501 | District 4
131

115

Torrance City Hall
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Cable Building Repipe 100,000 - - 100,000 City Manager’s Office Kitchen Improvements 75,000 72,576 - 2,424 Renovate City Attorney's Office 75,000 - 8,484 66,516 Renovate Employee Lounge 250,000 - - 250,000 Renovate Fire Prevention Building 186,535 107,631 16,631 62,274 Renovate GIS and Building & Safety Building 2,724,855 1,597,546 770,233 357,076 Renovate Main Building 375,021 219,488 - 155,533 Renovate West Annex Roofing and Interiors 675,636 224,552 - 451,084 Replace Audio/Visual Equipment in Meeting
Rooms 124,000 1 04,073 - 19,927 Veteran's Memorial Improvements 75,350 72,332 - 3,018 West Annex Painting 230,000 31,946 8,747 189,307 Total Expenditures 4,891,397$ 2,430,144$ 804,095$ 1,657,158$ Funding Source(s)
2016 Certificate of Participation 2,954,632 1,597,817 1,329,522 27,293 General Fund 1,706,317 800,381 (534,174) 1,440,111 Measure SST Fund 230,448 31,946 8,747 189,755 Total Expenditures 4,891,397$ 2,430,144$ 804,095$ 1,657,158$ Torrance City Hall
3031 Torrance Blvd, Torrance, CA 90503 | District 3
Torrance City Yard
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Fleet Offices Renovation 565,000 159,923 28,455 376,621 Install EV Chargers 175,000 - - 175,000 Motor and Mower Shop Exhaust Installation 150,000 - - 150,000 Remove Loading Dock 200,000 - - 200,000 Replace Roof City Yard Services Building 1,600,000 - 18,500 1,581,500 Total Expenditures 2,690,000$ 159,923$ 46,955$ 2,483,121$ Funding Source(s)
AQMD 175,000 - - 175,000 Fleet Services Capital Fund 600,000 159,923 28,455 411,621 General Fund 1,915,000 - 18,500 1,896,500 Total Expenditures 2,690,000$ 159,923$ 46,955$ 2,483,121$ 20500 Madrona Ave, Torrance, CA 90503 | District 3
Torrance City Yard
132

116

Torrance Cultural Arts Center
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Armstrong Theatre Rigging System 125,000 - - 125,000 Armstrong Theatre Sound & Lighting Upgrade 219,159 71,920 - 147,239 Exterior Lighting 100,000 - - 100,000 Nakano Theater Roof Replacement 80,965 80,965 - - Replace Sewage Pump System 29,491 29,491 - - Total Expenditures 554,616$ 182,377$ -$ 372,239$ Funding Source(s)
2016 Certificate of Participation 80,965 80,965 - - General Fund 444,159 71,920 - 372,239 Measure SST Fund 29,491 29,491 - - Total Expenditures 554,616$ 182,377$ -$ 372,239$ Torrance Cultural Arts Center
3330 Civic Center Dr, Torrance, CA 90503 | District 3
Torrance Municipal Airport
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Airport Main Runway Rehabilitation 793,965 249,000 - 544,965 Airport Taxiway Lighting and Wire
Replacement 573,660 1 0,200 10,600 552,860 General Aviation Center Roof Replacement 161,000 153,472 - 7,528 Implement Automated Weather Observing
System 998,000 1 82,228 24,800 790,972 Refurbish Roadways 29,940 17,900 - 12,040 Renovate Airport Hangars 874,780 132,085 - 742,695 Renovate Airport Traffic Control Tower 2,099,814 - 41,000 2,058,814 Taxiway Lighting Replacement 2,600,000 - 150 2,599,850 Total Expenditures 8,131,158$ 744,885$ 76,550$ 7,309,723$ Funding Source(s)
Airport Capital Project Fund 8,131,158 744,885 76,550 7,309,723 Total Expenditures 8,131,158$ 744,885$ 76,550$ 7,309,723$ Torrance Municipal Airport
3301 Airport Dr, Torrance, CA 90505 | District 6
133

117

Torrance Police Department
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Implement Jail Upgrades 150,000 - - 150,000 Renovate Department Facilities 979,000 85,957 67,607 825,436 Replacement of HVAC Condenser 60,000 41,500 - 18,500 Uninterrupted Power Supply Replacement 50,000 35,575 3,000 11,425 Total Expenditures 1,239,000$ 163,032$ 70,607$ 1,005,361$ Funding Source(s)
2016 Certificate of Participation 153,564 85,957 67,607 - DIF - Police 50,000 35,575 3,000 11,425 General Fund 150,000 - - 150,000 Measure SST Fund 885,436 41,500 - 843,936 Total Expenditures 1,239,000$ 163,032$ 70,607$ 1,005,361$ Torrance Police Department
3300 Civic Center Dr N, Torrance, CA 90503 | District 3 Torrance Regional Transit Center
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
ADA Compliance Improvements 150,000 88,112 - 61,888 Construction of RTC Parking Structure 35,000,000 198,985 - 34,801,016 Electrical upgrades 250,000 - - 250,000 Tenant Space Enhancements 1,145,800 26,499 - 1,119,301 Total Expenditures 36,545,800$ 313, 595$ -$ 36,232,205$ Funding Source(s)
Other Grants 35,000,000 198,985 - 34,801,016 Transit Capital Fund 1,545,800 114,611 - 1,431,189 Total Expenditures 36,545,800$ 313, 595$ -$ 36,232,205$ Torrance Regional Transit Center
485 Crenshaw Blvd, Torrance, CA 90501 | District 3
Torrance Theatre
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Torrance Southern Tarplant Preserve 494,975 - - 494,975 Total Expenditures 494,975$ -$ -$ 494,975$ Funding Source(s)
Other Grants 494,975 - - 494,975 Total Expenditures 494,975$ -$ -$ 494,975$ Torrance Southern Tarplant Preserve
485 Crenshaw Blvd, Torrance, CA 90503 | District 3
134

118

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 has spent $0 as of September 30, 2025. The following projects are ongoing 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
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
CBRS Private Cell Network CIT0001 170,000 - - 170,000 Customer Service Enhancement OP50 40,000 - - 40,000 Nakano Theater Audio Visual Renovation FAC0009 100,000 - - 100,000 Toyota Meeting Hall Audio Visual Renovation FAC0009 85,000 - - 85,000 Total Expenditures 395,000$ -$ -$ 395,000$ Torrance City Hall
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Customer Service Enhancement 40,000 - - 40,000 Total Expenditures 40,000$ -$ -$ 40,000$ Funding Source(s)
General Fund 40,000 - - 40,000 Total Expenditures 40,000$ -$ -$ 40,000$ 3031 Torrance Blvd, Torrance, CA 90503 | District 3
Torrance City Hall
Torrance Cultural Arts Center
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Nakano Theater Audio Visual Renovation 100,000 - - 100,000 Toyota Meeting Hall Audio Visual Renovation 85,000 - - 85,000 Total Expenditures 185,000$ -$ -$ 185,000$ Funding Source(s)
General Fund 185,000 - - 185,000 Total Expenditures 185,000$ -$ -$ 185,000$ Torrance Cultural Arts Center
3330 Civic Center Dr, Torrance, CA 90503 | District 3
135

119

Torrance Police Department
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
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 3 136

120

Public Right of Way (Streets)
This section summarizes the capital investement in the public right of way areas such as streets and sidewalks in the City. The City has

spent
$841,000 as of September 30, 2025. The following projects are ongoing 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
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Anza Ave Rehabilitation (190th to Sepulveda) I 144 5,684,236 4 ,855,566 137,016 691,654 Anza/Vista Montana/PCH Intersection Improvements T 154 2,900,000 2,477,822 - 422,178 Arterial Street Pavement Sealing Program I 139 17,473,720 5,468,475 95,807 11,909,438 Beach Cities Green Streets Project S 194 8,931,315 71,585 10,773 8,848,957 Bridge Preventative Maintenance Program I 124 129,628 - - 129,628 Cabrillo Ave Redesign I 198 1,515,640 - - 1,515,640 Citywide Sidewalk Ramping/Grinding Program I 152 450,000 - 11,980 438,020 Citywide Traffic Engineering and Improvements T 190 2,113,020 1,335,635 38,714 738,671 Citywide Traffic Signal Improvements T 171 1,765,211 148,174 30,964 1,586,072 Crenshaw Blvd & PCH Intersection Improvements-Phase 1 T 143 878,083 10,522 - 867,561 Crenshaw Blvd Intersection Imprv & 208th St Extension T 157 5,824,137 5,666,136 16,036 141,965 Fiber Network and Traffic Signal Optimization T 195 1,966,162 220,499 112,662 1,633,002 FY2018-21 Residential St Rehabilitation Program I 169 307,832 - - 307,832 Hawthorne Blvd Rehab (PCH to South City Limit) T 045 286,227 - - 286,227 Hawthorne Blvd Right-Turn Lanes at Lomita Blvd & 182nd St T 196 1,100,000 104,881 108,319 886,800 I-405 AT 182nd St/Crenshaw Blvd operational improvements T 155 5,132,293 1,631,831 131,161 3,369,301 Intersection Improvements-Pacific Coast Hwy/Hawthorne Blvd T 131 1,856,022 1,791,772 2,514 61,736 Plaza del Amo at Western Ave (SR213) Mobility Enhancement T 177 119,732 117,812 - 1,920 Prairie Avenue Bridge Rehabilitations I 148 3,749,950 32,139 - 3,717,811 Residential Slurry Seal Program I 159 27,937,309 11,927,957 - 16,009,352 Sepulveda Soundwall Repair I 197 100,000 - - 100,000 Sidewalk Improvements for Disabled Accessibility I 135 4,425,652 3,319,374 145,094 961,184 Torrance School Safety and Accessibility Program I 188 22,879,295 3,584,284 - 19,295,011 Transportation Management System Improvements T 189 39,000 39,000 - - Transportation Open Space Corridor Multi-Use Trail I 194 650,000 - - 650,000 Total Expenditures 118,214,464$ 42,803,464$ 841,040$ 74,569,960$ Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Donations 44,800 44,800 - - Gas Tax 2,102,580 1,338,997 137,016 626,568 Measure R Local Return 250,000 250,000 - - Other Grants 2,365,737 2,327,038 - 38,699 Prop C Local Return 921,118 894,731 - 26,387 Total Expenditures 5,684,236$ 4,855,566$ 137,016$ 691,654$ Anza Ave Rehabilitation (190th to Sepulveda) (I 144)
137

121

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure R Grant 2,900,000 2,477,822 - 422,178 Total Expenditures 2,900,000$ 2,477,822$ -$ 422,178$ Anza/Vista Montana/PCH Intersection Improvements (T 154) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Airport Capital Project Fund 46,000 40,000 - 6,000 Gas Tax 1,069,000

101,780

967,220

Measure R Local Return 6,085,960

1,670,648

4,415,312

Prop C Local Return 9,682,082

3,065,369

95,807

6,520,905

SB1 590,678

590,678

Total Expenditures 17,473,720$ 5,468,475$ 95,807$ 11,909,438$ Arterial Street Pavement Sealing Program (I 139)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
General Fund 144,124 - - 144,124 Measure W 583,757

592

583,165

Measure W Grant 5,366,953

5,366,953

Other Grants 2,790,151

70,858

2,719,293

Sewer Capital Project Fund 46,330

727

10,181

35,422

Total Expenditures 8,931,315$ 71,585$ 10,773$ 8,848,957$ Beach Cities Green Streets Project (S 194)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 129,628 - - 129,628 Total Expenditures 129,628$ -$ -$ 129,628$ Bridge Preventative Maintenance Program (I 124)
138

122

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
General Fund 200,000 - - 200,000 Other Grants 718,528

718,528

SB1 597,112

597,112

Total Expenditures 1,515,640$ -$ -$ 1,515,640$ Cabrillo Ave Redesign (I 198)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure R Local Return 450,000 - 11,980 438,020 Total Expenditures 450,000$ -$ 11,980$ 438,020$ Citywide Sidewalk Ramping/Grinding Program (I 152)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 663,020 242,234 2,616 418,170 Measure M Local Return 1,450,000 1,093,401 36,098 320,501 Total Expenditures 2,113,020$ 1,335,635$ 38,714$ 738,671$ Citywide Traffic Engineering and Improvements (T 190)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 379,702 88,343 - 291,360 General Fund 10,000

10,000

Measure R Local Return 186,455

11,113

175,342

Other Grants 626,320

29,854

20,744

575,722

Prop C Local Return 562,733

18,864

10,221

533,648

Total Expenditures 1,765,211$ 148,174$ 30,964$ 1,586,072$ Citywide Traffic Signal Improvements (T 171)
139

123

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
DIF - Transportation 578,000 - - 578,000 Measure R Grant 300,083 10,522 - 289,561 Total Expenditures 878,083$ 10,522$ -$ 867,561$ Crenshaw Blvd & PCH Intersection Improvements (T 143)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 830,265 739,110 4,204 86,951 Measure M Grant 609,000

572,836

11,832

24,331

Measure R Grant 3,300,000

3,299,155

845

Other Grants 1,084,872

1,055,035

29,837

Total Expenditures 5,824,137$ 5,666,136$ 16,036$ 141,965$ Crenshaw Blvd Intersection Imprv & 208th St Extension (T 157) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
DIF - Transportation 599,495 83,050 44,298 472,147 Measure M Grant 1,050,000

123,376

61,876

864,748

Measure M Local Return 316,667

14,073

6,488

296,106

Total Expenditures 1,966,162$ 220,499$ 112,662$ 1,633,002$ Fiber Network and Traffic Signal Optimization (T 195)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure R Local Return 307,832 - - 307,832 Total Expenditures 307,832$ -$ -$ 307,832$ FY2018-21 Residential St Rehabilitation Program (I 169) 140

124

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 278,327 - - 278,327 General Fund 7,900 - - 7,900 Total Expenditures 286,227$ -$ -$ 286,227$ Hawthorne Blvd Rehab (PCH to South City Limit) (T 045)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure M Grant 1,000,000 104,881 108,319 786,800 Measure M Local Return 100,000 - - 100,000 Total Expenditures 1,100,000$ 104,881$ 108,319$ 886,800$ Hawthorne Boulevard Right-Turn Lanes (T 196)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure R Grant 5,132,293 1,631,831 131,161 3,369,301 Total Expenditures 5,132,293$ 1,631,831$ 131,161$ 3,369,301$ I-405 AT 182nd St/Crenshaw Blvd Operational Improvements (T 155) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure R Grant 1,856,022 1,791,772 2,514 61,736 Total Expenditures 1,856,022$ 1,791,772$ 2,514$ 61,736$ Intersection Improvements-Pacific Coast Hwy/Hawthorne Blvd (T 131) 141

125

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure M Local Return - (1,920) - 1,920 Measure R Grant 119,732 119,732 - - Total Expenditures 119,732$ 117,812$ -$ 1,920$ Plaza Del Amo at Western Ave (SR213) (T 177)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 332,410 14,680 - 317,729 Other Grants 17,540

17,459

82 Prop C Local Return 3,400,000

3,400,000

Total Expenditures 3,749,950$ 32,139$ -$ 3,717,811$ Prairie Avenue Bridge Rehabilitations (I 148)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 4,535,000 3,550,000 - 985,000 General Fund 627,627

627,627

Measure M Local Return 4,211,712

1,305,058

2,906,654

Measure R Local Return 3,020,000

3,020,000

SB1 15,542,970

7,072,899

8,470,071

Total Expenditures 27,937,309$ 11,927,957$ -$ 16,009,352$ Residential Slurry Seal Program (I 159)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Gas Tax 100,000 - - 100,000 Total Expenditures 100,000$ -$ -$ 100,000$ Sepulveda Soundwall Repair (I 197)
142

126

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
CDBG Fund 941,435 743,998 - 197,437 Donations 1,500

1,500

Measure M Local Return 3,150,000

2,467,278

145,094

537,628

Other Grants 123

123

Prop A Local Return 263

263

SB1 78,833

78,833

TDA Article 3 Bicycle Fund 253,498

106,598

146,900

Total Expenditures 4,425,652$ 3,319,374$ 145,094$ 961,184$ Sidewalk Repair for Handicap Accessibility (I 135)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure M Grant 17,337,375 3,082,302 - 14,255,073 Measure M Local Return 5,541,920 501,982 - 5,039,938 Total Expenditures 22,879,295$ 3,584,284$ -$ 19,295,011$ Torrance School Safety and Accessibility Program (I 188) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure M Grant 39,000 39,000 - - Total Expenditures 39,000$ 39,000$ -$ -$ Transportation Management System Improvements (T 189)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Other Grants 650,000 - - 650,000 Total Expenditures 650,000$ -$ -$ 650,000$ Transportation Open Space Corridor Multi-Use Trail (I 194) 143

127

Sewer/Water Utilities
This section summarizes the planned capital investment in the Sewer and Water utilities throughout the City. The City

spent
$18,000

as of September 30, 2025. The following projects are ongoing 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
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Airport Emergency Water Supply Line I 199 800,000 - - 800,000 Citywide Sewer System Improvements I 191 6,473,705 581 11,172 6,461,952 Del Amo 5 Sewer Project I 176 2,314,409 - - 2,314,409 Dominguez Channel BMP Project I 185 503,821 - - 503,821 FY2018-21 Sewer Repairs I 170 479,266 21,522 - 457,745 High Pressure Zone Modifications I 186 2,995,367 71,755 - 2,923,612 Misc Water Main Repl for Developer & Street Rehab Projects I 153 6,533,976 1,706,329 7,182 4,820,464 On-Site Recycled Water Retrofits I 184 787,399 - - 787,399 Paseo de la Playa Residential Undergrounding I 175 340,211 - - 340,211 Sewer System Master Plan/Hydraulic Model I 168 100,000 - - 100,000 Undergrounding Overhd Util/Inst St Lights-PVBlvd bet. Torr/Sepul I 156 1,635,983 - - 1,635,983 Utility Undergrounding Administration I 182 154,485 - - 154,485 Van Ness Ave Water Wells & Transmission Main I 145 18,820,267 16,219,371 - 2,600,895 Walteria Slope Reservoir Repair I 181 1,497,346 79,650 - 1,417,697 Total Expenditures 43,436,234$ 18,099,208$ 18,354$ 25,318,672$ Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Airport Capital Project Fund 800,000 - - 800,000 Total Expenditures 800,000$ -$ -$ 800,000$ Airport Emergency Water Supply Line (I 199)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
DIF - Sewer 9,000 - - 9,000 Sewer Capital Project Fund 6,464,705 581 11,172 6,452,952 Total Expenditures 6,473,705$ 581$ 11,172$ 6,461,952$ Citywide Sewer System Improvements (I 191)
144

128

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
General Fund 214,409 - - 214,409 Sewer Capital Project Fund 2,100,000 - - 2,100,000 Total Expenditures 2,314,409$ -$ -$ 2,314,409$ Del Amo 5 Sewer Project (I 176)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure W 500,000 - - 500,000 Sewer Capital Project Fund 3,821 - - 3,821 Total Expenditures 503,821$ -$ -$ 503,821$ Dominguez Channel BMP Project (I 185)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Sewer Capital Project Fund 479,266 21,522 - 457,745 Total Expenditures 479,266$ 21,522$ -$ 457,745$ FY2018-21 Sewer Repairs (I 170)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Water Capital Fund 2,995,367 71,755 - 2,923,612 Total Expenditures 2,995,367$ 71,755$ -$ 2,923,612$ High Pressure Zone Modifications (I 186)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Water Capital Fund 6,533,976 1,706,329 7,182 4,820,464 Total Expenditures 6,533,976$ 1,706,329$ 7,182$ 4,820,464$ Miscellaneous Water Main Replacements (I 153)
145

129

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Water Capital Fund 787,399 - - 787,399 Total Expenditures 787,399$ -$ -$ 787,399$ On-Site Recycled Water Retrofits (I 184)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
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
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Sewer Capital Project Fund 100,000 - - 100,000 Total Expenditures 100,000$ -$ -$ 100,000$ Sewer System Master Plan/Hydraulic Model (I 168)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
DIF - Utility Underground 1,635,983 - - 1,635,983 Total Expenditures 1,635,983$ -$ -$ 1,635,983$ Undergrounding Overhd Util/Inst St Lights-PVBlvd bet. Torr/Sepul (I 156)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
DIF - Utility Underground 154,485 - - 154,485 Total Expenditures 154,485$ -$ -$ 154,485$ Utility Undergrounding Administration (I 182)
146

130

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Other Grants 740,000 740,000 - - Water Capital Fund 3,001,432

400,536

2,600,895

Water State Revolving Fund 15,078,835

15,078,835

Total Expenditures 18,820,267$ 16,219,371$ -$ 2,600,895$ Van Ness Ave Water Wells & Transmission Main (I 145)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Water Capital Fund 1,497,346 79,650 - 1,417,697 Total Expenditures 1,497,346$ 79, 650$ -$ 1,417,697$ Walteria Slope Reservoir Repair (I 181)
147

131

Storm Drains/Basins
This section summarizes the planned capital investment in the City’s storm drain and storm water basin infrastructure. The City

spent
$32

6,0
00 as of September 30, 2025. The following project s are ongoing to ensure that

the
storm water infrastructure is prepared to handle the increasing severity of climate events.

Individual Project Details

Project Title
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Citywide Storm Drain Replacement & Installation I 192 8,111,925 985,760 150,607 6,975,558 North Torrance Well Field-Predesign I108 8,180,204 7,313,069 17,857 849,278 Paseo de la Playa Slope and Storm Drain Repair I 180 12,642 - - 12,642 Storm Water Retention Basin and Channel Perimeter Fencing I 196 277,745 - 97,680 180,065 Stormwater Basin Expansion Project I 179 721,192 391,880 59,394 269,917 Torrance Airport Storm Water Basin Project I 174 688,487 216,136 - 472,351 Total Expenditures 17,992,195$ 8,906,844$ 325,539$ 8,759,812$ Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
DIF - Storm Drain 916,887 32,921 9,028 874,938 Measure W 6,416,347

942,501

141,579

5,332,267

Other Grants 778,691

10,337

768,354

Total Expenditures 8,111,925$ 985,760$ 150,607$ 6,975,558$ Citywide Storm Drain Replacement and Installation (I 192) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Other Grants 647,168 647,104 - 64 Water Capital Fund 7,533,035

6,665,964

17,857

849,213

Total Expenditures 8,180,204$ 7,313,069$ 17,857$ 849,278$ North Torrance Well Field-Predesign (I 108)
148

132

Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
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
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure W 277,745 - 97,680 180,065 Total Expenditures 277,745$ -$ 97,680$ 180,065$ Storm Water Retention Basin and Channel Perimeter Fencing (I 196)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Measure W Grant 721,192 391,880 59,394 269,917 Total Expenditures 721,192$ 391,880$ 59,394$ 269,917$ Stormwater Basin Expansion Project (I 179)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
General Fund 4,673 - - 4,673 Measure W 517,677

216,136

301,541

Sewer Capital Project Fund 166,138

166,138

Total Expenditures 688,487$ 216,136$ -$ 472,351$ Torrance Airport Storm Water Basin Project (I 174)
149

133

Operating Projects
The following section summarizes projects by the department responsible for their implementation, with future maintenance costs to be reflected in each department’s operating budget. The City

spent

$1.1 million

as of September 30, 2025

Project Title
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
3D GIS Mapping/Cyclomedia OP49 140,000 - - 140,000 Accela Continuous Improvement Initatives OP50 166,164 19,665 25,984 120,516 AssetWorks Software Implementation OP50 121,000 3,033 21,650 96,317 Automated Meter Integration Upgrade OP83 6,600,000 4,723,224 746,707 1,130,069 Bollard Replacement at Wilson Park OP93 105,000 37,695 - 67,305 Citywide Event Perimeter Protection Measures OP83 150,000 - - 150,000 Citywide Facility Reservation System OP50 100,000 - - 100,000 Citywide Parks Master Plan OP93 300,000 - - 300,000 Citywide Tree Planting Program OP83 854,000 320,480 - 533,520 Citywide Web Redesign OP50 520,000 249,780 25,700 244,520 Civic Center Evacuation Route and Signage OP53 62,500 31,250 - 31,250 Civic Center Master Plan OP41 660,000 - - 660,000 Columbia Park Engagement and Concept Design OP93 184,782 177,054 - 7,728 Community AED Purchase OP71 204,622 41,949 4,992 157,681 Critical Incident Communications Consulting OP70 240,000 80,000 60,000 100,000 DCH Airport Site Remediation Account OP95 200,000 200,000 - - Del Amo Fashion Center PCC OP70 493,350 - - 493,350 EA Properties Remediation OP95 2,500,000 2,434,788 65,212 0 Electronic Content Management Enhancement OP50 102,861 14,975 - 87,886 Electronic Plan Submittal and Review OP49 500,000 29,016 85,000 385,984 Emergency Operations Center (EOC) Upgrade OP70 115,000 - - 115,000 Emergency Slope Stabilization at 4812 Newton Street OP83 200,000 124,185 - 75,815 Enterpise Resource Planning System Replacement OP50 620,000 - - 620,000 Enterprise Cashiering OP50 195,000 29,700 - 165,300 EV Chargers For Park & Library Facilities OP53 80,000 20,956 4,433 54,611 Fire Modernization OP50 300,000 - - 300,000 GIS System Upgrade OP50 285,000 57,000 25,000 203,000 Hi-Shear OU-2 Remediation Account OP95 3,000,000 - - 3,000,000 Housing Element Compliance OP49 246,012 - - 246,012 Median Beautification (Torrance Blvd at Western Ave) OP83 329,913 123,250 - 206,663 New Citizen Engagement for Web & Mobile OP50 95,000 - - 95,000 Park Lighting Replacement and Repair OP93 385,862 206,386 - 179,476 Police IT Remediation OP50 250,000 67,634 1,488 180,879 PROSECUTOR Software Implementation OP50 157,900 86,463 - 71,438 Public Safety Element Update / Environmental Justice OP49 245,000 112,860 - 132,140 Purchase of Light Pole Stock OP83 185,000 - 14,582 170,418 Refurbish Amenities at Sur La Brea Park OP93 20,898 20,898 - - 150

134

Individual Project Details

Project Title
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Relocate Tarplant Preserve OP41 100,000 - - 100,000 Remediate Soil at RTC Site OP41 423,954 186,279 5,335 232,341 Replace Fence at 19301 - 19501 Prairie Avenue OP83 150,000 138,244 - 11,756 Replacement of RightFax (OpenText) OP50 15,000 - - 15,000 Resurface Playing Courts OP93 875,000 - 8,800 866,200 RTC Audio Visual and Technical Systems Upgrades OP94 165,000 154,711 - 10,289 SBL Airport Site Remediation Account OP95 200,000 200,000 - - 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 18,230 27,690 154,080 Street Name Sign Replacements OP83 172,278 - - 172,278 Supervisory Control & Data Acq (SCADA) Upgrades OP83 544,953 - - 544,953 Trapeze System Upgrade OP94 100,000 99,697 - 303 Upgrade Post Production and Asset Management Systems OP41 355,000 229,289 - 125,711 Use of Force Investigation OP70 240,000 - - 240,000 Water System Master Plan OP83 500,000 - - 500,000 Total Expenditures 26,216,049$ 10,238,689$ 1,122,572$ 14,854,788$ Operating Projects - Airport
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
DCH Airport Site Remediation Account 200,000 200,000 - - EA Properties Remediation 2,500,000 2,434,788 65,212 0 Hi-Shear OU-2 Remediation Account 3,000,000 - - 3,000,000 SBL Airport Site Remediation Account 200,000 200,000 - - Total Expenditures 5,900,000$ 2,834,788$ 65,212$ 3,000,000$ Funding Source(s)
Airport Capital Project Fund 5,900,000 2,834,788 65,212 3,000,000 Total Expenditures 5,900,000$ 2,834,788$ 65,212$ 3,000,000$ Operating Projects - Airport
151

135

Operating Projects - City Manager
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Civic Center Master Plan 660,000 - - 660,000 Relocate Tarplant Preserve 100,000 - - 100,000 Remediate Soil at RTC Site 423,954 186,279 5,335 232,341 Upgrade Post Production and Asset
Management Systems 355,000 2 29,289 - 125,711 Total Expenditures 1,538,954$ 415,568$ 5,335$ 1,118,052$ Funding Source(s)
General Fund 1,183,954 186,279 5,335 992,341 PEG Fund Capital 355,000 229,289 - 125,711 Total Expenditures 1,538,954$ 415,568$ 5,335$ 1,118,052$ Operating Projects - City Manager
Operating Projects - Community
Development
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
3D GIS Mapping/Cyclomedia 140,000 - - 140,000 Electronic Plan Submittal and Review 500,000 29,016 85,000 385,984 Housing Element Compliance 246,012 - - 246,012 Public Safety Element Update / Environmental
Justice 245,000 1 12,860 - 132,140 Strategic Plan Survey & Community
Profile/Environmental Scan 200,000 1 8,230 27,690 154,080 Total Expenditures 1,331,012$ 160,106$ 112,690$ 1,058,216$ Funding Source(s)
General Fund 1,331,012 160,106 112,690 1,058,216 Total Expenditures 1,331,012$ 160,106$ 112,690$ 1,058,216$ Operating Projects - Community Development
152

136

Operating Projects - Community
Services
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Bollard Replacement at Wilson Park 105,000 37,695 - 67,305 Citywide Parks Master Plan 300,000 - - 300,000 Columbia Park Engagement and Concept
Design 184,782 1 77,054 - 7,728 Park Lighting Replacement and Repair 385,862 206,386 - 179,476 Refurbish Amenities at Sur La Brea Park 20,898 20,898 - - Resurface Playing Courts 875,000 - 8,800 866,200 Total Expenditures 1,871,542$ 442,033$ 8,800$ 1,420,709$ Funding Source(s)
Measure SST Fund 1,280,000 37,695 8,800 1,233,505 Other Grants 184,782 177,054 - 7,728 Park Equipment Replacement Fund 20,898 20,898 - - Parks & Rec Open Space Fund 385,862 206,386 - 179,476 Total Expenditures 1,871,542$ 442,033$ 8,800$ 1,420,709$ Operating Projects - Community Services
Operating Projects - Fire
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Community AED Purchase 204,622 41,949 4,992 157,681 Total Expenditures 204,622$ 41,949$ 4,992$ 157,681$ Funding Source(s)
General Fund 204,622 41,949 4,992 157,681 Total Expenditures 204,622$ 41,949$ 4,992$ 157,681$ Operating Projects - Fire
Operating Projects - General
Services
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Civic Center Evacuation Route and Signage 62,500 31,250 - 31,250 EV Chargers For Park & Library Facilities 80,000 20,956 4,433 54,611 Total Expenditures 142,500$ 52,206$ 4,433$ 85,861$ Funding Source(s)
Fleet Services Capital Fund 50,000 - - 50,000 General Fund 92,500 52,206 4,433 35,861 Total Expenditures 142,500$ 52,206$ 4,433$ 85,861$ Operating Projects - General Services
153

137

Operating Projects - IT
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Accela Continuous Improvement Initatives 166,164 19,665 25,984 120,516 AssetWorks Software Implementation 121,000 3,033 21,650 96,317 Citywide Facility Reservation System 100,000 - - 100,000 Citywide Web Redesign 520,000 249,780 25,700 244,520 Electronic Content Management Enhancement 102,861 14,975 - 87,886 Enterpise Resource Planning System
Replacement 620,000 - - 620,000 Enterprise Cashiering 195,000 29,700 - 165,300 Fire Modernization 300,000 - - 300,000 GIS System Upgrade 285,000 57,000 25,000 203,000 New Citizen Engagement for Web & Mobile 95,000 - - 95,000 Police IT Remediation 250,000 67,634 1,488 180,879 PROSECUTOR Software Implementation 157,900 86,463 - 71,438 Replacement of RightFax (OpenText) 15,000 - - 15,000 Total Expenditures 2,927,925$ 528,249$ 99,821$ 2,299,855$ Funding Source(s)
Fleet Services Capital Fund 19,000 1,300 17,438 262 General Fund 2,889,925 526,949 78,171 2,284,804 Transit Capital Fund 19,000 - 4,212 14,788 Total Expenditures 2,927,925$ 528,249$ 99,821$ 2,299,855$ Operating Projects - IT
Operating Projects - Police
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Critical Incident Communications Consulting 240,000 80,000 60,000 100,000 Del Amo Fashion Center PCC 493,350 - - 493,350 Emergency Operations Center (EOC) Upgrade 115,000 - - 115,000 Use of Force Investigation 240,000 - - 240,000 Total Expenditures 1,088,350$ 80,000$ 60,000$ 948,350$ Funding Source(s)
General Fund 1,088,350 80,000 60,000 948,350 Total Expenditures 1,088,350$ 80,000$ 60,000$ 948,350$ Operating Projects - Police
154

138

Operating Projects - Public Works
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Automated Meter Integration Upgrade 6,600,000 4,723,224 746,707 1,130,069 Citywide Event Perimeter Protection Measures 150,000 - - 150,000 Citywide Tree Planting Program 854,000 320,480 - 533,520 Emergency Slope Stabilization at 4812 Newton
Street 200,000 124,185 - 75,815 Median Beautification (Torrance Blvd at
Western Ave) 329,913 123,250 - 206,663 Purchase of Light Pole Stock 185,000 - 14,582 170,418 Replace Fence at 19301 - 19501 Prairie Avenue 150,000 138,244 - 11,756 Sewer Lift Station Pump and Back-up
Generator Replacements 1,260,000 - - 1,260,000 Street Name Sign Replacements 172,278 - - 172,278 Supervisory Control & Data Acq (SCADA)
Upgrades 544,953 - - 544,953 Water System Master Plan 500,000 - - 500,000 Total Expenditures 10,946,144$ 5,429,383$ 761,289$ 4,755,472$ Funding Source(s)
General Fund 1,187,191 385,679 14,582 786,930 Measure SST Fund 854,000 320,480 - 533,520 Sewer Capital Project Fund 1,260,000 - - 1,260,000 Water Capital Fund 7,644,953 4,723,224 746,707 2,175,022 Total Expenditures 10,946,144$ 5,429,383$ 761,289$ 4,755,472$ Operating Projects - Public Works
Operating Projects - Transit
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
RTC Audio Visual and Technical Systems
Upgrades 165,000 1 54,711 - 10,289 Trapeze System Upgrade 100,000 99,697 - 303 Total Expenditures 265,000$ 254,408$ -$ 10,592$ Funding Source(s)
Transit Capital Fund 265,000 254,408 - 10,592 Total Expenditures 265,000$ 254,408$ -$ 10,592$ Operating Projects - Transit
155

139

Other Projects
This section summarizes planned capital investment in other areas that do not fit the scope or scale of the other capital investment categories included in this plan but still represent a significant investment in

the
community. The City spent $190,000 as of September 30, 2025. The following projects

are ongoing

to address these other areas of needed investment.

Individual Project Details

Project Title
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Airport Pavement Maintenance Program I 126 3,055,917 - - 3,055,917 Design and Construct Gateway Entry Signs OTR0001 74,000 74,000 - - Digital Sign Modernization I 195 325,000 - - 325,000 Downtown Parking Structure OTR0001 125,000 - - 125,000 Refurbish Amenities and Signs OTR0001 732,708 237,586 190,373 304,749 Upgrade Downtown Torrance Lights to LED OTR0001 500,000 143,819 - 356,181 Total Expenditures 4,812,625$ 455,405$ 190,373$ 4,166,847$ Downtown Torrance
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Design and Construct Gateway Entry Signs 74,000 74,000 - - Downtown Parking Structure 125,000 - - 125,000 Refurbish Amenities and Signs 732,708 237,586 190,373 304,749 Upgrade Downtown Torrance Lights to LED 500,000 143,819 - 356,181 Total Expenditures 1,431,708$ 455,405$ 190,373$ 785,930$ Funding Source(s)
General Fund 1,431,708 455,405 190,373 785,930 Total Expenditures 1,431,708$ 455,405$ 190,373$ 785,930$ Downtown Torrance
156

140

Torrance Municipal Airport
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Airport Pavement Maintenance Program 3,055,917 - - 3,055,917 Total Expenditures 3,055,917$ -$ -$ 3,055,917$ Funding Source(s)
Airport Capital Project Fund 3,055,917 - - 3,055,917 Total Expenditures 3,055,917$ -$ -$ 3,055,917$ Torrance Municipal Airport
3301 Airport Drive,Torrance, CA 90505 | District 6
Other Infrastructure
Life-to-Date
Budget
Prior Years
Actuals
July-Sept
Actuals
Life-To-Date
Balance
Digital Sign Modernization 325,000 - - 325,000 Total Expenditures 325,000$ -$ -$ 325,000$ Funding Source(s)
General Fund 125,000 - - 125,000 PEG Fund Capital 200,000 - - 200,000 Total Expenditures 325,000$ -$ -$ 325,000$ Other Infrastructure
157
Department
General Fund Cost
Impact
Fleet Fund Cost
Impact
Airport Fund Cost
Impact
Transit Fund Cost
Impact
General Fund One-
Time Cost Impact
General Services -$ (194,654)$ 876,600$ -$ -$
Non-Departmental 845,000$ -$ -$ -$ -$
Public Works 32,028$ -$ -$ -$ -$
Revenue Total 877,028$ (194,654)$ 876,600$ -$ -$ Department FTE Change
General Fund Cost
Impact
Fleet Fund Cost
Impact
Airport Fund Cost
Impact
Transit Fund Cost
Impact
General Fund One-
Time Cost Impact
City Attorney's Office 1.00 85,566$ -$ -$ -$ -$
City Manager's Office 1.00 (17,224)$ -$ -$ -$ -$
Community Development - 14,523$ -$ -$ -$ -$
Community Services 2.03 175,655$ -$ -$ -$ -$
Finance 0.50 215$ -$ -$ -$ 100,000$
General Services (1.50) 123,782$ (194,654)$ 1,791,600$ -$ -$ Non-Departmental - (121,919)$ -$ -$ -$ -$
Police 4.00 1,475,189$ -$ -$ -$ -$
Public Works 3.00 276,098$ -$ -$ -$ -$
Transit (0.50) -$ -$ -$ (36,168)$ -$
Expenditure Total 9.53 2,011,885$ (194,654)$ 1,791,600$ (36,168)$ 100,000$ Net Surplus / (Deficit) (1,134,857)$ 0$ (915,000)$ 36,168$ (100,000)$ Proposed Fiscal Year 2025-26 First Quarter Program Modifications and Budget Adjustment
Attachment 1
ATTACHMENT 2
158

Finance and Governmental Operations Council CommitteeDecember 11, 2025

Finance and Governmental Operations Council Committee
December 11, 2025