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Date: December 16, 2025
To: Honorable Mayor and Members of the City Council
From: Finance and Governmental Operations Committee
By: Ian Dailey, Finance Director | [email protected] Subject: Finance and Governmental Operations Committee – Accept and File Fiscal Year 2025-26 First Quarter Budget Review Report, Approve Proposed Program Modifications, and Appropriate Funds. Expenditure: $3,672,663 (General Fund and Non-General Fund).
RECOMMENDATION
Recommendation of the Finance and Governmental Operations Committee that City Council:
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 for 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.
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
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December 16, 2025
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
This matter will be considered by the Finance and Governmental Operations Committee on Thursday, December 11, 2025. A supplemental will be prepared to confirm the Finance and Governmental Operations Committee’s approval on the proposed program modifications and budget adjustments.
Fiscal Year 2025-26 First Quarter Budget Review Report
Each year, the Finance Department provides the Finance and Governmental Operations Committee with two (2) budget updates on the City’s overall financial performance. The First Quarter Budget Review Report provides a financial analysis for the first three (3) months of the fiscal year ending September 30 and the Mid-Year Budget Review Report provides a financial analysis for the first six (6) months of the fiscal year ending December 31. The Fiscal Year 2025- 26 First Quarter Budget Review Report (Attachment 1) is prepared in collaboration with City departments using actual, unaudited activity and examines the budget of the City’s major funds with an emphasis on the General Fund’s core revenues and expenditures, including year-to-date spending, reserve balances, projected year-end figures, and a summary of economic trends.
Proposed Fiscal Year 2025-26 First Quarter Program Modifications and Budget Adjustments
The Fiscal Year 2025-26 First Quarter Budget Review Report also includes various proposed program modifications and budget adjustments which are summarized below. If approved, these program modifications will have a total cost of $3,672,663. A detailed costing breakdown has been provided as Attachment 2.
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 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.
2 City Council
December 16, 2025
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.
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. 3 City Council
December 16, 2025
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.
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. 4 City Council
December 16, 2025
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.
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. 5 City Council
December 16, 2025
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.
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.
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December 16, 2025
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.
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. 7 City Council
December 16, 2025
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.
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. 8 City Council
December 16, 2025
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) 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: $(36,168) (Transit Fund)
The requested deletion of 0.5 FTE Driver/Clerk, Delivery position is a result of the General Services Department’s Fleet Services staff realignment discussed in the Fleet Services Fund section, as the position is equally shared by the General Services and Transit departments.
In accordance with the information provided in this report, the Finance and Governmental Operations Committee recommends that City Council accept and file the Fiscal Year 2025-26 First Quarter Budget Review Report and approve the proposed program modifications and budget adjustments.
ATTACHMENTS
1. FY25-26 First Quarter Budget Review Report (Hyperlinked Below) https://www.torranceca.gov/home/showpublisheddocument/99304/639004540398557006
2. FY25-26 First Quarter Program Modifications Summary Table 9 AGENDA ITEM 8O
FOR ATTACHMENT 1 OF ITEM 80
PLEASE USE LINK BELOW
FY25-26 First Quarter Budget Review Report
Available Online at:
https://www.torranceca.gov/home/showpublisheddocument/99304/6 39004540398557006
ATTACHMENT 1
10 Department
General Fund Cost
Impact
Fleet Fund Cost
Impact
Airport Fund Cost
Impact
Transit Fund Cost
Impact
General Fund One-
Time Cost Impact
General Services -$ (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 2
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