Agenda packet — Finance and Governmental Operations Council Committee, March 12, 2026 (part 2 of 2)

The Fiscal Year 2025-26 Mid-Year Budget Review Report includes proposed program modifications and budget adjustments which are summarized below for the consideration of the Finance and Governmental Operations Committee.

General Services Department
Administrative Services Division Staffing Adjustment
Delete 1.0 FTE Staff Assistant and Add 1.0 FTE Administrative Analyst Expenditure: $31,954 (General Fund)
The General Services Department is requesting the conversion of 1.0 FTE Staff Assistant to 1.0 FTE Administrative Analyst. The Administrative Services Division supports an increasingly complex portfolio of capital projects, requiring analytical, financial and programmatic support beyond the scope of the Staff Assistant classification. Capital project support now requires data analysis, budget evaluation, forecasting, reporting and cross-departmental coordination, which are consistent with the Administrative Analyst classification.

Increase the Airport Fund Expenditure Budget by $4,500,000 The General Services Department is requesting an increase in the Airport Fund’s operating budget by $4,500,000 due to increases in one-time land lease signing fees and insurance reimbursements, which will be transferred out to the General Fund Operating Fund.

Finance Department
Increase the Self-Insurance Fund Expenditure Budget by $2,000,000 The Finance Department is requesting an increase in the Self-Insurance Fund’s operating budget by $2,000,000 due to increases in workers’ compensation claims and settlement related costs.

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 budget adjustments, and recommend the same actions to the City Council at a subsequent City Council meeting.

ATTACHMENT

1. Fiscal Year 2025-26 Mid-Year Budget Review Report
2 Finance and Governmental Operations Committee
CITY OF TORRANCE · DEPARTMENT OF FINANCE

MID-YEAR

BUDGET REVIEW
REPORT
FY 2025-26
3 ATTACHMENT 1
Table of Contents
Executive Summary ..................................................................................................................................... 1 Introduction ............................................................................................................................................................................................ 1 Citywide Budget Summary ..................................................................................................................................................................... 5 Program Modifications ............................................................................................................................................................................ 9 Capital Improvement Plan .................................................................................................................................................................... 11 Areas of Focus ........................................................................................................................................................................................ 12 Strategic Plan Performance Indicators by Department ....................................................................................................................... 14 Revenues ................................................................................................................................................... 19 Citywide Revenues by Fund .................................................................................................................................................................. 19 Citywide Revenues by Classification..................................................................................................................................................... 20 General Fund-Operating Fund Revenue by Classification ................................................................................................................... 21 General Fund-Measure SST Fund Revenue by Classification ............................................................................................................... 26 Expenditures .............................................................................................................................................. 28 Citywide Expenditures by Fund ............................................................................................................................................................ 28 Citywide Expenditures by Classification ............................................................................................................................................... 29 Citywide Expenditures by Department ................................................................................................................................................. 30 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 ........................................................................................................................................................................................ 45 Community Development ..................................................................................................................................................................... 47 Community Services ............................................................................................................................................................................. 55 Finance .................................................................................................................................................................................................. 59 Fire ......................................................................................................................................................................................................... 63 General Services .................................................................................................................................................................................... 66 Human Resources ................................................................................................................................................................................. 72 Information Technology ....................................................................................................................................................................... 74 Police ..................................................................................................................................................................................................... 77 Public Works .......................................................................................................................................................................................... 81 Transit .................................................................................................................................................................................................... 88 Non-Departmental ................................................................................................................................................................................ 92 Capital Improvement Plan ........................................................................................................................... 98 CIP Summary by Project Type ............................................................................................................................................................... 98 Parks .................................................................................................................................................................................................... 100 Facilities ............................................................................................................................................................................................... 106 IT Infrastructure .................................................................................................................................................................................. 112 Public Right of Way (Streets) ............................................................................................................................................................... 114 Sewer/Water Utilities .......................................................................................................................................................................... 121 Storm Drains/Basins............................................................................................................................................................................ 125 Operating Projects .............................................................................................................................................................................. 127 Other Projects ...................................................................................................................................................................................... 134 s
4 EXECUTIVE

SUMMARY
Mid-Year Budget Review Report
5 1

Executive Summary
Introduction
The Fiscal Year (FY) 2025-26 Mid-Year Budget Review provides City Council and the community with a clear overview of the City’s

project
ed year-end financial performance

based on
the period ending
December 31 , 202 5. 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

FY 2025
-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. Additionally, in February 2026, Torrance’s FY 2025

-
26 Operating Budget and Capital
Improvement Plan received the Operating Budget E xcellence Award from the California Society of Municipal Finance Officers (CSMFO) for the third

consecutive
year—

reflecting the City’s commitment
to strong financial management, transparency, and clear communication of how public resources are allocated to serve our community.

General Fund revenues and expenditures

are
projected to improve compared 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 result in a

projected surplus of
$440,000 at year

-
end. The City is on track to exceed its Economic Anomaly Reserve

Policy
, ending
the year with an estimated

22 .1
% 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 FY 2024

-
25 and 9.5% in FY 20

23 -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 FY 20

26 -27. However, global economic uncertainty related to tariffs , elevated market valuations,

and recent stock market activity

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 34

.6
% funded—

an improvement from

8.1% in FY19

-
20 —

though it remains in the

City’s High
-Risk category and requires ongoing
attention.
6 2

Public Safety & Security
Public

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

-
26, implementation continues 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 reforms. Included in the First Quarter Budget Review Report, additional staffing was added to further strengthen the Department’s long-term capacity to meet these goals. In December 2025, City Council awarded an agreement to an expert consultant team to

monitor the City’s compliance

with
CADOJ
in the Police Department’s implementation of the reforms, consistent with the agreement.

To ensure first responders have the equipment they need, City Council approved a $1.5 million purch

ase in October 2025 for new digital equipment, including 230 mobile data computers for police vehicles. In December 2025

,
City Council approved 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.

These technological

investments will improve operations while providing
key data required for CADOJ required reporting and compliance.

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

60 encampments, contacted more than

1,
800

individuals, and helped
10 8

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

With public safety and quality of life being top priorities for City Council, the City continues to make visible progress in community beautification.

Included in the
First Quarter Budget Review Report,
additional staffing was added in Public Works to strengthen efforts in street sweeping, illegal dumping response, and weed abatement.

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, businesses and visitors.

7 3

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 – Alta Loma Park: Designs completed and

expect

playground to be replaced summer
2026

•

Parks – Columbia Park : Phase 1 renovations, including the World War II Camp Wall Monument, are moving

forward with the City receiving bids through May 2026 to facilitate construction in fall 2026.
•

Parks – Guenser Park:

Project is in final design phase with construction of a new walking path to take place in summer 2026.
•

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

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

Parks – Wilson Park: Improvements along

Jefferson St frontage including parking lot
rehabilitation along with new pickleball court construction underway with completion targeted for the end of 2026

•

Facilities – Regional Transit

Center
: Construction of a temporary lot

at corner of Crenshaw
Blvd and 208 th St to facilitate a design -build of a 1,000 parking space structure is underway with the City identifying a prospective design-build firm to complete the effort.

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 resulted in the hiring of

2 3 Police
Recruits, 7 Lateral Officers, and

8 Public Safety Dispatchers as of

December
2025

These increased
recruitment levels help further address the 56

.0 vacant FTE
in the sworn and Public Safety Dispatcher
classifications as of December 31 , 2025. The City’s overall vacancy rate is 13.5%, 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:

8 4

• Online Permit Applications: A fully electronic application process now improves convenience for those seeking to

invest in property in our community through the Permit
Center.
•

Online Business License Applications: A fully electronic application process

that is being
rolled out

improves convenience for new businesses

to get licensed in the city
.
•

Citywide Web Redesign: Phase 1 (of three phases) is scheduled for launch in

April 2026

,
with
exploration of AI-driven chatbots to further improve online services. •

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

completed in

202
6, consolidating

revenue collection processes citywide.

•

Enterprise Resource Planning System Replacement:

This
project officially kicked off is
January 12, 202

6 , with third -party support from SDI Presence . SDI Presence has since conducted detail ed needs assessment meetings with affected stakeholders to

understand
business requirements of any new system that is selected.

SDI Presence
will next support city
staff in the request for proposals development, vendor selection, and contract negotiations process.
•

Computer Aided Dispatch (CAD) System Replacement: In December 2025,

City Council
approved a 10

-
year agreement with Vers aterm to implement a replacement CAD system for the Torrance Police Department as part of their investment in 21 st century police technologies, improving reliability and quality of service to the community. •

Library Needs Assessment: This project kicked off in December 2025

with an established
project team currently working through the Discovery and Analysis phase of the

project
.

During this phase, the team is conducting research to assemble key data while crafting the stakeholder and community

phase of the effort. It is projected that this

effort will be
completed by the end of calendar year 2026

helping inform future decisions
.
•

Automated Meter Upgrade: Continued investment this year supports citywide conversion to remote-read meters, giving residents real-time access to water consumption data.

Conclusion

The Mid-Year 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.

9 5

Citywide Budget Summary
Citywide Revenues Budget Summary

As of

December 31
, 2025, citywide revenues across all funds totaled

$
239.9

million, achieving

42.1 %

of the FY 2025

-
26 revenue budget. In comparison, during the same period ending December 31, 2024, the City realized

$
244

.3
million in revenues, representing

45.1 %

of the

FY 2024

-
25 revenue budget.

Fund
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
General Fund-Operating Fund 287,065,655$ 109,420,972$ 38.1% 303,509,688$ 108,756,543$ 35.8% 303,821,312$ 311,624$ 100.1% General Fund-Measure SST 25,167,266$ 8,347,898$ 33.2% 26,183,606$ 8,959,056$ 34.2% 26,919,120$

735,514$ 102.8%
General Fund -Restricted 9,958,325$ 10,729,565$ 107.7% 4,416,579$ 5,000,048$ 113.2% 6,457,450$ 2,040,871$ 146.2% General Fund-Assigned 7,886,781$ 7,770,500$ 98.5% 7,111,091$ 4,118,568$ 57.9% 8,237,134$ 1,126,043$ 115.8% Total General Fund 330,078,027$ 136,268,935$ 41.3% 341,220,964$ 126,834,215$ 37.2% 345,435,016$ 4,214,052$

101.2%
AQMD Fund 208,296$ 104,484$ 50.2% 211,134$ 103,146$ 48.9% 206,790$ (4,344)$

97.9%
Debt Services Fund 23,107,338$

15,442,659$ 66.8% 23,625,753$

16,048,696$

67.9% 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$ 4,306,122$ 48.1% 9,685,309$ 4,774,875$ 49.3% 9,586,050$ (99,259)$ 99.0% Street Lighting Fund 1,866,272$ 1,090,655$ 58.4% 1,937,828$ 1,111,588$ 57.4% 1,950,000$ 12,172$

100.6%
Traffic Safety Fund 180,000$ 18,902$

10.5% 70,950$

25,705$ 36.2% 55,110$ (15,840)$ 77.7% Vanpool Fund 245,871$ 129,003$ 52.5% 261,749$ 94,885$

52.3% 26,924,350$ 5,003,626$ 122.8%
Sanitation Fund 18,918,815$ 7,628,936$ 40.3% 18,993,739$ 8,072,153$ 42.5% 20,211,972$ 1,218,233$ 106.4% Sewer Fund 8,616,082$ 3,597,715$ 41.8% 8,201,108$ 3,733,172$ 45.5% 8,340,367$ 139,259$ 101.7% Transit Fund 35,233,572$ 18,867,178$ 53.5% 38,508,429$ 19,768,952$ 51.3% 37,621,258$

(887,171)$

97.7%
Water Fund 54,803,501$ 27,252,722$ 49.7% 61,768,887$ 28,902,131$ 46.8% 63,080,108$

1,311,221$ 102.1%
Total Enterprise Funds 135,914,296$ 68,638,457$ 50.5% 149,392,887$ 71,937,078$ 48.2% 156,178,055$ 6,785,168$

104.5%
Fleet Services Fund 13,339,999$ 6,466,195$ 48.5% 15,074,962$

6,849,741$ 45.4% 13,457,780$ (1,617,182)$ 89.3% Self-Insurance Fund 23,659,000$ 11,833,072$ 50.0% 24,178,667$ 12,134,024$ 50.2% 24,214,950$ 36,283$

100.2%
Total Internal Service Funds 36,998,999$ 18,299,267$ 49.5% 39,253,629$ 18,983,765$ 48.4% 37,672,730$ (1,580,899)$ 96.0% Redevelopment Agency Fund 3,988,268$ 4,613$ 0.1% 4,339,486$ 1,540$ 0.0% 4,339,506$ 20$

100.0%
Total Fiduciary Funds 3,988,268$

4,613$ 0.1% 4,339,486$

1,540$ 0.0% 4,339,506$

20$ 100.0%
Total Revenues 541,617,381$ 244,344,226$ 45.1% 570,040,894$ 239,915,493$ 42.1% 579,280,239$ 9,239,345$

101.6%
Prior Year FY 2024-25 Current Year FY 2025-26
10 6

Citywide Expenditures Budget Summary

As of

December 31
, 2025, citywide expenditures across all funds totaled $299.6

million, representing

50.6 %
of the

FY 2025

-
26 expenditure budget. In comparison,

during the same period ending
December 31, 2024, the City

spent

$
275.7

million, or

52.3 %

of the

FY 2024

-
25 expenditure budget.

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

$3.0
million deficit by the end of
the fiscal year.

The following

year
-end

results

are

highlighted below

for
FY 2025

-
26:

•

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

projected deficit of

$694,000

This fund’s budget was originally adopted with a planned use of fund balance of $8.1 million to support additional one-time contributions to the Capital

Improvement Fund
. While the
Revenue side of the budget projects a

modest
surplus of $312,000

,
the Expenditure side
projects a surplus of $7.1 million, primarily driven by

position vacancies.

•

The General Fund-Measure SST Fund will operate

at a

projected surplus of

$1.3 million,
primarily driven by a projected surplus in tax receipts and the use of grant funds for homelessness efforts

offsetting the burden on the Measure SST Fund
.
•

The General Fund -Restricted Fund will operate at a

projected
deficit of $1.0 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 $809,000
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

Fund
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
General Fund-Operating Fund 287,514,706$ 148,840,769$ 51.8% 311,565,816$ 162,764,788$ 52.2% 304,515,282$ 7,050,534$ 97.7% (693,970)$ General Fund-Measure SST 27,495,124$ 19,861,879$

72.2% 26,183,606$ 15,425,555$ 58.9% 25,589,152$ 594,454$ 97.7% 1,329,968$ General Fund -Restricted 166,175$ 69,393$

41.8% 7,471,489$ 84,519$

1.1% 7,462,524$ 8,965$ 99.9% (1,005,074)$

General Fund-Assigned 6,630,279$ 5,570,502$ 84.0% 7,517,299$ 3,398,822$ 45.2% 7,428,000$ 89,299$

98.8% 809,134$
Total General Fund 321,806,284$ 174,342,543$ 54.2% 352,738,210$ 181,673,684$ 51.5% 344,994,958$ 7,743,252$

97.8% 440,058$

AQMD Fund 277,141$ 134,241$ 48.4% 360,478$ 244,587$ 67.9% 327,556$ 32,922$

90.9% (120,766)$

Debt Service Fund 23,107,338$ 15,440,956$

66.8% 23,625,753$ 16,047,732$ 67.9% 23,625,753$

-$ 100.0% -$
Low Mod Fund 65,061$ 28,777$

44.2% 70,338$

27,934$

39.7% 50,838$ 19,500$

72.3% (50,838)$
Meadow Park Parking Lot District 29,064$

10,617$

36.5% 33,705$

14,515$

43.1% 32,000$

1,705$ 94.9% 9,205$
Section 8 Housing 8,825,679$ 4,344,676$ 49.2% 9,590,801$ 4,665,088$ 48.6% 9,505,439$ 85,362$

99.1% 80,611$

Street Lighting Fund 1,866,272$ 766,227$ 41.1% 1,937,828$ 801,391$ 41.4% 1,950,000$ (12,172)$ 100.6% -$ Traffic Safety Fund 180,000$ -$ 0.0% 70,950$

46,910$

66.1% 55,110$ 15,840$

77.7% -$
Vanpool Fund 245,871$ 129,017$ 52.5% 261,749$ 94,883$

36.2% 190,024$ 71,725$

72.6% (0)$

Total Nonmajor Governmental Funds 34,596,426$ 20,854,511$ 60.3% 35,951,602$ 21,943,040$ 61.0% 35,736,720$ 214,882$

99.4% (81,788)$
Airport Fund 17,958,142$ 10,264,515$ 57.2% 28,531,635$ 18,629,672$ 65.3% 32,586,119$ (4,054,484)$

114.2% (5,661,769)$
Sanitation Fund 20,062,665$ 7,839,750$ 39.1% 20,035,722$ 8,171,922$ 40.8% 18,512,340$

1,523,382$ 92.4% 1,699,632$
Sewer Fund 5, 823,593$ 3,082,699$ 52.9% 7,131,592$ 4,413,401$ 61.9% 7,001,311$ 130,281$ 98.2% 1,339,056$ Transit Fund 41,472,492$ 18,323,958$ 44.2% 46,791,919$ 21,298,991$ 45.5% 43,902,522$ 2,889,397$ 93.8% (6,281,264)$

Water Fund 51,905,219$ 26,267,502$ 50.6% 61,326,156$ 23,815,180$ 38.8% 58,644,367$

2,681,789$ 95.6% 4,435,741$
Total Enterprise Funds 137,222,111$ 65,778,424$ 47.9% 163,817,024$ 76,329,166$ 46.6% 160,646,659$ 3,170,365$

98.1% (4,468,604)$
Fleet Services Fund 8,940,680$ 4,448,582$ 49.8% 14,054,487$ 6,818,940$ 48.5% 13,955,717$ 98,770$

99.3% (497,937)$

Self-Insurance Fund 23,514,888$ 10,175,199$ 43.3% 24,301,818$ 12,741,636$ 52.4% 25,659,662$ (1,357,844)$ 105.6% (1,444,712)$

Total Internal Service Funds 32,455,568$ 14,623,781$ 45.1% 38,356,305$ 19,560,576$ 51.0% 39,615,379$ (1,259,074)$ 103.3% (1,942,649)$ Redevelopment Agency Fund 1,401,953$ 115,426$ 8.2% 1,252,179$ 69,500$

5.6% 1,246,979$ 5,200$ 99.6% 3,092,527$ Total Fiduciary Funds 1,401,953$

115,426$

8.2% 1,252,179$

69,500$ 5.6% 1,246,979$

5,200$ 99.6% 3,092,527$

Total Expenditures 527,482,342$ 275,714,685$ 52.3% 592,115,320$ 299,575,966$ 50.6% 582,240,695$ 9,874,625$

98.3% (2,960,456)$
Projected Net
Surplus/(Defic
it)
Prior Year FY 2024-25 Current Year FY 2025-26
11 7

• The Airport Fund will operate at a projected deficit of $5.7 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 $6.3 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.
7 million. This
fund’s budget was originally adopted with a planned use of fund balance of $7.8

million.

•

The Self-Insurance Fund will

operate at a projected deficit of

$1.4 million
overall, due to an
increase in projected expenditures related to liabilities and settlements.

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 the General Fund -Operating Fund’s major revenue projections are summarized below.
•

Sales and Use Tax revenues have increased by $1. 6 million (+8.4 %) to date and are projected to

exceed
budget by $1.5 million based on the latest projections from the City’s property tax consultant , HdL. FY 2025

-
26 marks the first -year sales tax is project ed to grow over the prior year

since FY21
-22 when sales tax peaked

at $63.6 million

.
•

Property Tax revenues have increased by $ 926,000

(+4.4%) to date, however , they are
projected to fall short of budget by $361,000

0.5%)

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

FY 2025

-
26 .
•

Utility Users’ Tax revenues have decreased by $ 2.3 million ( -12.2

%)
to date and is
projected to fall short of budget by $ 3.6 million (- 8.3%) based on currently projected electricity, gas, cable, cellular, and telecommunications consumption and use rates. The primary driver of change

is a reduction in the

Refinery: Gas

category of UUT
.

Revenue Type
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Sales and Use Tax 62,525,957$ 19,294,015$ 30.9% 61,701,050$ 20,921,237$ 33.9% 63,173,168$ 1,472,118$ 102.4% Property Taxes 67,850,489$ 20,930,306$ 30.8% 72,011,450$

21,856,752$ 30.4% 71,650,383$ (361,067)$

99.5%
Utility Users Tax 46,002,866$ 18,556,833$

40.3% 43,313,300$ 16,297,859$ 37.6% 39,734,810$ (3,578,490)$ 91.7% Charges for Services 25,217,466$ 11,927,104$

47.3% 25,928,210$ 12,942,419$ 49.9% 26,196,060$ 267,850$ 101.0% Operating Transfers In 33,216,309$ 20,796,583$ 62.6% 43,259,345$

17,361,633$ 40.1% 44,435,825$ 1,176,480$ 102.7% Total Revenues 234,813,087$ 91,504,841$ 39.0% 246,213,355$ 89,379,900$ 36.3% 245,190,246$ (1,023,109)$ 99.6% Prior Year FY 2024-25 Current Year FY 2025-26
12 8

• Charges for Services revenues have increased by $1.0 million (+8.5%) to date , and it is projected to

exceed
budget by $268

,000 (
+1.0%). This is primarily due to

growth in plan check
fees

and Green Building Code fees
in Community Development.
•

Operating Transfers In revenues have decreased by $3.4 million (-16.5%) to date and are projected to

exceed budget by
$1.2 million at year-end. This projected surplus is

largely due
to increased T ransfers In from the Airport Fund driven by one-time lease signing fee

s
for
contract extensions and rent increases, partially offset by

one
-time litigation expenses in the
Airport Fund.

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

December 31
, 2025, this fund realized overall expenditures of

15.4 million,

achieving 58.9%
of the

FY 2025

-
26 budget. Overall, it is projected that revenues will exceed expenditures by $1.3 million 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
.

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.

General Fund-Measure SST Fund
FY25-26
Amended
Budget
FY25-26
Actuals
FY25-26
Projection
Quality of Life
Restore/Maintain Public Safety 13,181,051 6,590,527 13,181,051 Homelessness Response Efforts 1,003,520 144,665 417,266 Fiscal Sustainability
Reserve Contribution 5,000,000 2,500,002 5,000,000 Emergency Responsiveness
Cyber Security Upgrades 1,020,320 211,646 1,012,120 Deferred Maintenance & Community Services/Programs
Capital Contribution 5,978,715 5,978,715 5,978,715 Total Expense 26,183,606$

15,425,555$

25,589,152$

13 9

Fund Balance of General Fund

As shown above, the Fund Balance of the General Fund is projected to increase

by $440,000

in FY
2025

26. For the Pension Reserve from the City’s Pension Reserve Fund (Section 115 Trust), the planned $7.3 million drawdown is partially offset by the contribution

of $2.3 million

to the Fund as
well as projected investment earnings of $3.9 million. 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,

an
d the FY 2025

-
26 Adopted Operating Budget was a

pproved with planned use
of fund balance totaling $ 8.1 million.

However, with
a projected expenditure surplus, primarily
driven by salary savings due to vacancies, Other Unassigned reserves is projected to increase by $1.5 million.

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

FY
2025

-
26 translates to

$62.
3 million. As shown in the table above, in

FY 2025

-
26, the City is exceeding
this amount with an Economic Anomaly Reserve of

$68.9 million, or

22. 1%.

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

Fund Balance
FY24-25
Audited
FY25-26
Projected Difference
Nonspendable 1,822,932 929,896 (893,036) Restricted 44,224,849

43,219,775

(1,005,074)

Cable TV 3,372,213

3,601,296

229,083

Pension Reserve 40,852,636

39,618,479

(1,234,157)

Assigned 81,100,002

81,909,136

809,134

Technology Replacement 12,193,794

13,002,928

809,134

Economic Anomaly Reserve 68,906,208

68,906,208

Unassigned 23,651,863

25,180,897

1,529,034

Other Unassigned 23,651,863

25,180,897

1,529,034

Total Fund Balance 150,799,646$ 151,239,704$ 440,058$

14 10

As shown below, the City’s FY 2025 -26 operating budget remains consistent in total FTE, as a result of budgeted position’s conversion. Additional details on the specific classifications and justification can be found in the Departments

section of this document.

Citywide Staffing Changes by Fund

Citywide Staffing Changes by Department

Fund
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Mid-Year
Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
General Fund 1,156.55 1,161.50 1,173.03 1,173.03 - 31,954$ 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 32.10 32.10 -

-$
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 196.80 205.80 205.30 205.30 -

-$
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 1,556.73 1,556.73 - 31,954$ Department
FY24-25
Actual
FY25-26
Adopted
Budget

FY25-26
Amended
Budget

FY25-26
Mid-Year
Proposed
Budget
FY25-26
Increase/
Decrease
Total
Fiscal
Impact
City Attorney 14.00 14.00 15.00 15.00 - -$ 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 46.25 46.25 - -$ City Treasurer 2.00 2.00 2.00 2.00 - -$ Community Development 74.00 77.00 77.00 77.00 - -$ Community Services 205.15 205.15 207.18 207.18 - -$ Finance 38.25 38.25 38.75 38.75 - -$ Fire 203.00 203.00 203.00 203.00 - -$ General Services 116.75 117.75 116.25 116.25 - 31,954$ Human Resources 14.00 16.00 16.00 16.00 - -$ Information Technology 39.00 44.00 43.00 43.00 - -$ Police 359.00 354.00 359.00 359.00 - -$ Public Works 208.00 209.00 212.00 212.00 - -$ Transit 196.80 205.80 205.30 205.30 - -$ Total 1,533.25 1,547.20 1,556.73 1,556.73 - 31,954$ 15 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

December 31 , 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 – Alta Loma Park: This project is

a full replacement

of the

existing
playground itself,
including rubberization of the playground surface

to improve accessibility.

Currently, this
project is in the final design phases and is expected to be completed in Summer 2026. •

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

will
receive bids through May 2026
to facilitate construction be

ginning in fall 2026

.
•

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. Early site investigations and technical coordination are underway to support environmental review and future project development having complete d initial conceptual

designs

and
community engagement.
•

Parks – Guenser Park

: This project includes a full replacement of the existing walking path, along with new connections to adjacent sidewalks to improve accessibility. The project is currently in the final design phase and is anticipated to be completed in Summer 2026. •

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

Capital Project Type
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Parks 39,373,168 1,205,758 897,963 37,269,447 Facilities 60,829,778 4,666,449 2,751,786 53,411,543 IT Infrastructure 415,500 25,611 34,430 355,458 Public Right of Way 118,997,807 42,805,384 6,455,377 69,737,046 Sewer/Water Utilities 43,436,234 18,099,208 107,572 25,229,454 Storm Drain/Basins 19,812,129 8,906,844 1,113,222 9,792,063 Operating Project 29,262,728 10,233,682 2,791,019 16,238,028 Other 4,734,125 455,405 514,107 3,764,613 Total Expenditures 316,861,470$ 86,398,341$

14,665,477$

215,797,652$
16 12

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.
•

Parks – Wilson Park

At Wilson Park, the

old “Building 8” structure has been fully demolished
and removed from the property. Concurrently, the City is nearing the bidding process to improve the frontage of Jefferson St , including ADA accessible paths of travel in the parking lot, which will also be rehabilitated in 2026. Finally, staff continue to advance the addition of new pickleball courts, currently working to schedule the construction of these new facilities with the awarded vendor.
•

Facilities – Torrance Regional Transit Center : The City is currently procuring services for two major efforts at this site. The first is an Invitations for Bid to construct a temporary parking lot at the southwest corner of Crenshaw Blvd and 208th St. The second seeks a vendor to complete a design-build construction of a new 1,000 parking space parking structure over the current parking lot at the Regional Transit Center.

The full details of all projects can be found in the

Capital Improvement Plan
section of this
document.

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

52.3 million

•

Labor Trends:

Elevated turnover remains creating

elevated

vacancy rates

•

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 (audited), this fund was underfunded by approximately $52.3

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

c
laims of $ 18.4 million. As of

June 30, 2025

(audited), the fund ’s assets
stand at $ 27.6 million. As a result, the Self -Insurance Fund is

approximately 3

4.6% funded, which
continues to place it in the High -Risk Category of the City’s

Financial
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. 17 13

Labor Trends
As of

December
31, 2025

,
254

employees are eligible for retirement (based

on
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 resigna tions. 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.

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

As of the

six
-month period ending

December
31, 2025

, there have been

32 retirements and
45 voluntary resignations, compared to 30

and 44

during the prior year, respectively.

Aging Infrastructure and City Facilities/Parks
The City owns and operates over $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 th e “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 FY 2024

-
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 6 Months of
FY25-26
Retirements 72 59 33 48 32
V
oluntary Resignations 133 121 96 87 45
Departures or Death 13 21 18 20 16
Total Separations 218 201 147 155 93
FY21-22 FY22-23 FY23-24 FY24-25
18 14

accrued liability (UAL) payments over the amortized period of 20 years, beginning in FY2 7 -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
make its first drawdown of $7.3 million from the CEPPT Fund in FY 2025

-
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 FY 2024 - 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 onl ine KPI Dashboard, which will be made available i

n
FY 2026-27. In
the tables below, each department has listed their approved KPIs, their KPI benchmarks, and outcomes for the period covering

July 1,
2025,

December 31
, 2025.
19 15

Strategic
Plan Sub-
G
oals(s)
Key Performance Indicator (KPI) Frequency T arget Value Q1 (Jul-Sep)
Q2
(Oct-Dec) Q2 Status
N/A Closure rate on civil litigation cases Q uarterly >=70% 220% 120% On-Track N/A Closure Rate on Work Requests Q uarterly >=60% 75% 80% On-Track N/A Number of training opportunities provided by the City Attorney's Office Quarterly >=1 0 0 O ff-Track
N/A Percentage of Strategic Plan Subgoals Off Track Q uarterly <=5% 0% 0% On-Track

5.2.1 Number change of unhoused individuals within the City A nnually <=0 31 355 Off-Track

11.7.4 Viewer Retention Rate (greater than 15 seconds) Q uarterly >=70% watch over
15 seconds of
c
ontent
70% 72% O n-Track

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

3.6.2 Code Compliance Closure Rate Q uarterly >=85% 83% 67% Off-Track

3.6.2 Customer Satisfaction Rate at Permit Center Q uarterly >=90% 93% 94% On-Track

3.6.2 Customer Wait Time at Permit Center (minutes) Q uarterly <=20 min 8 min 8 min On-Track

1.1.7 Number of public art pieces installed A nnually >=8 6 6 Off-Track

4.4.3 Number of library visitors; Main Library Q uarterly >=39,000 39,261 30,913 Off-Track

4.4.3 Number of library visitors: Branch Libraries Q uarterly >=52,500 52,655 51,166 Off-Track

4.5.1 Average enrollment rates of offered classes Q uarterly >=75% 74% 82% On-Track

1.1.4 Average number of days to close Service Requests Q uarterly <=5 days 7 34 Off-Track City Attorney's Office
City Manager's Office
Community Development
Community Services
20 16

Strategic
Plan Sub-
Goals(s)
Key Performance Indicator (KPI) Frequency Target Value Q1 (Jul-Sep)
Q2
(Oct-Dec) Status
N/A Average number of days to process a Budget Transfer Quarterly <=3 days 5.7 3.5 Off-Track N/A Average number of days to process a Change Order Quarterly <=3 days 2.3 2.2 On-Track

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

8.5.2, 8.5.3 Number of public engagement meetings Quarterly >=1 1 2 On-Track

8.2.3 Number of Business Licenses Annually >=13,500 13,987 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 sec 7 min 50 sec 8 min 57 sec Off-Track

10.5.4 Performance of 1st unit on-scene for all EMS incidents at the 90th percentile (minutes) Quarterly <=6 min 4 sec 7 min 45 sec 9 min 16 sec Off-Track

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

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

11.1 Percentage of City Fleet Vehicles that are zero-emission Quarterly 100% 10% 12% Off-Track N/A Average number of days to complete central services work orders Quarterly <=3 days 3 3 On-Track
N/A Average number of days to complete graffiti work orders Quarterly <=2 days 1 1 On-Track General Services
Finance
Fire
21 17

Strategic
Plan Sub-
Goals(s)
Key Performance Indicator (KPI) Frequency Target Value Q1 (Jul-Sep)
Q2
(Oct-Dec) Status

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

9.5 Average number of days to establish eligibility lists (Safety) Quarterly <=90 days 54 45 On-Track

9.5 Average number of days to establish eligibility lists (Non- Safety) Quarterly <=90 days 46 44 On-Track

9.5 Average number of days to process Personnel Action Forms Quarterly <=3 days 3 5 Off-Track

9.5 Average number of days to complete NeoGov Requisition Quarterly <=2 days 1.92 1.97 On-Track

9.5.2 Average number of days to enroll employees in benefits Quarterly <=30 days 18 21 On-Track

9.5 Citywide Vacancy Rate Quarterly <=10% 11.9% 13.5% Off-Track N/A Percentage of service requests completed within two hours Quarterly >=98.5% 98% 98.5% On-Track N/A Percentage of unplanned maintenance incidents Quarterly <=10% 5% 3% On-Track N/A Cyber Security Incident Closure Rate Quarterly 100% 100% 100% On-Track

9.4.2 Percentage of employees who complete cybersecurity training Annually >=90% 92% 91% On-Track

10.2.1,10.2.
2 Average Police Response Time to Emergency Priority One Calls Quarterly <=7 min 8 min 48 sec 8 min 39 sec Off-Track N/A Number of community engagement meetings/events/forums Quarterly >=12 27 39 On-Track

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

11.5.1 Percent of local water supply sold Quarterly >=55% 29% 33% Off-Track

11.3.6 Number of street trees Quarterly >=44,500 39,095 39,780 Off-Track Police
Public Works
Human Resources
Information Technology
22 18

Strategic
Plan Sub-
Goals(s)
Key Performance Indicator (KPI) Frequency Target Value Q1 (Jul-Sep)
Q2
(Oct-Dec) Status

7.1.2 Percent of Bus On-time Performance Quarterly >=80% 80.9% 77.7% Off-Track

7.1.2, 7.3.2,

7.3.4, 7.3.6 Total Transit Ridership (All Bus, TCTP and future Micro Transit) Quarterly >=500,000 591,134 693,420 On-Track N/A Average vehicle revenue miles between mechanical failures Quarterly >=6,000 miles 28,026 24,457 On-Track N/A Percentage value of fare box recovery Annually >=4% 3.8% 4.0% On-Track Transit
23 REVENUES
Mid-Year Budget Review Report
24 19

Revenues
Citywide Revenues by Fund

As of

December 31
, 2025, Citywide revenues across all

funds totaled

$
240

million
, achieving

42 .1%
of the FY 2025

-
26 revenue budget. In comparison, during the same period ending December 31, 2024

,
the City realized

$
244.3

million

in revenues, representing 45

.1%

of the

FY 2024

-
25 revenue budget.

The decrease from prior year

was
mainly due to

the General Fund
and was offset by an increase

in
the Water Fund. The decrease in

the
General Fund-Restricted Fund of $5.7 million was mainly due to a $7.1 million reduction in Operating Transfers In from General Fund-Operating Fund to the Section 115 Trust

(CEPPT)
Fund, which was offset by an increase from pooled investment earnings

by
$1.4
million.

The increase

the

Water

Fund

of $1.6 million

was mainly due to

increased collections from

water service fees

due to

annual rate increase
s.

As shown under the “ Projected Surplus/(Deficit)” column in the previous table, the following year - end results are projected for FY 2025

-
26 :
•

The

General Fund
-Operating Fund

is expected to operate at a projected surplus of $
312,000,
primarily driven by a project surplus of $1.4 million in License, Fees, and Permits and a Fund
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
General Fund-Operating Fund 287,065,655$ 109,420,972$ 38.1% 303,509,688$ 108,756,543$ 35.8% 303,821,312$ 311,624$ 100.1% General Fund-Measure SST 25,167,266$ 8,347,898$ 33.2% 26,183,606$

8,959,056$ 34.2% 26,919,120$

101.2%
AQMD Fund 208,296$ 104,484$ 50.2% 211,134$ 103,146$ 48.9% 206,790$ (4,344)$

97.9%
Debt Services Fund 23,107,338$ 15,442,659$ 66.8% 23,625,753$

16,048,696$ 67.9% 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$

100.6%
Traffic Safety Fund 180,000$ 18,902$

10.5% 70,950$

25,705$

36.2% 55,110$ (15,840)$ 77.7% Vanpool Fund 245,871$ 129,003$ 52.5% 261,749$ 94,885$

36.3% 190,024$ (71,725)$ 72.6% Total Nonmajor Governmental Fu 34,637,791$ 21, 132,954$ 61.0% 35,833,928$ 22,158,895$ 61.8% 35,654,932$ (178,996)$ 99.5% Airport Fund 18,342,326$ 11,291,906$ 61.6% 21,920,724$ 11,460,670$ 52.3% 26,924,350$ 5,003,626$ 122.8% Sanitation Fund 18,918,815$ 7,628,936$ 40.3% 18,993,739$ 8,072,153$ 42.5% 20,211,972$ 1,218,233$ 106.4% Sewer Fund 8,616,082$ 3,597,715$ 41.8% 8,201,108$ 3,733,172$ 45.5% 8,340,367$ 139,259$ 101.7% Transit Fund 35,233,572$ 18,867,178$

53.5% 38,508,429$

19,768,952$

51.3% 37,621,258$ (887,171)$

97.7%
Water Fund 54,803,501$ 27,252,722$ 49.7% 61,768,887$

28,902,131$ 46.8% 63,080,108$

1,311,221$ 102.1%
Total Enterprise Funds 135,914,296$ 68,638,457$ 50.5% 149,392,887$ 71,937,078$ 48.2% 156,178,055$ 6,785,168$

104.5%
Fleet Services Fund 13,339,999$ 6,466,195$ 48.5% 15,074,962$

6,849,741$ 45.4% 13,457,780$ (1,617,182)$ 89.3% Self-Insurance Fund 23,659,000$ 11,833,072$ 50.0% 24,178,667$

12,134,024$ 50.2% 24,214,950$ 36,283$

100.0%
Total Fiduciary Funds 3,988,268$

4,613$ 0.1% 4,339,486$

1,540$ 0.0% 4,339,506$

20$ 100.0%
Total Revenues 541,617,381$ 244,344,226$ 45.1% 570,040,894$ 239,915,493$ 42.1% 579,280,239$ 9,239,345$

101.6%
Prior Year FY 2024-25 Current Year FY 2025-26
25 20

projected surplus of $1.2 million in Operating Transfers In offset by a projected deficit of $2.9 million in Taxes.
•

The General Fund-Restricted Fund will operate at a projected surplus of $2.0 million primarily driven by increased investment earnings in the CEPPT Fund. •

The General Fund-Assigned Fund will operate at a projected surplus of $1.1 million primarily driven by increased contributions to the City’s IT Asset Replacement Fund . •

The Fleet Services Fund will operate at a projected

shortfall
of $1.6 million due to reduced
contributions for future vehicle replacements from city departments . •

The Enterprise Funds will operate at a projected surplus of $ 6.8 million overall, led by the Airport Fund, Water Fund, Sanitation Fund, partially offset by a projected deficit in the Transit Fund.

Details driving the change from prior fiscal year

and projected year

-
end balances

are discussed in
the following sections.

Citywide Revenues by Classification

The summary table above shows the citywide revenue budget by classification. As of December 31, 2025, across all funds, the City realized

revenu
es of $239.9 million, representing

4 2.1% of the FY 2025-
26 citywide revenue budget. During the same period ending December 31, 2024, the City

collect
ed
$244

.3
million or

45 .1% of the FY 2024-25 citywide

revenu
e budget. The c

hange from

the
prior fiscal
year are mainly due to

a $

14.6 million reduction

from
Operating Transfers In, a $5.6

million increase

from Charges for Services, a $3.6 million

increase
from the Use of Money and Property

classification,
and

$0.9

million increase in

Intergovernmental
sources.

As shown under the “Projected Surplus/(Deficit)” column in the previous table, the following year- end results are projected for FY 2025

-
26:

•

Taxes

are expected to finish the year with a projected

shortfall

of $

2.3 million.

Classification
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Taxes 233,514,935$ 76,431,364$ 32.7% 235,400,519$ 76,271,098$ 32.4% 233,102,626$ (2,297,893)$ 99.0% Licenses, Fees, and Permits 18,414,731$ 5,399,759$ 29.3% 19,695,580$

5,101,590$ 25.9% 22,183,270$

2,487,690$ 112.6%
Fines, Forfeitures, and Penalties 822,774$ 351,767$ 42.8% 2,186,040$ 1,280,959$ 58.6% 2,098,020$ (88,020)$ 96.0% Use of Money and Property 58,166,651$ 35,107,929$

60.4% 65,010,099$ 38,703,995$ 59.5% 70,122,608$

5,112,509$ 107.9%
Intergovernmental 39,195,088$ 20,232,339$ 51.6% 41,319,972$

21,153,739$ 51.2% 40,392,390$

(927,582)$

97.8%
Charges for Services 132,962,475$

62,869,020$ 47.3% 146,274,521$ 68,476,688$ 46.8% 147,620,060$ 1,345,539$ 100.9% Other Revenues 1,126,068$ 2,591,062$ 230.1% 1,945,110$ 2,210,629$ 113.7% 3,304,508$ 1,359,398$ 169.9% Operating Transfers In 57,224,891$ 41,360,986$ 72.3% 58,019,285$

26,716,795$ 46.0% 60,266,989$

2,247,704$ 103.9%
Other Financing Sources 189,768$ -$ 0.0% 189,768$ -$ 0.0% 189,768$ -$ 100.0% Total Revenues 541,617,381$ 244,344,226$ 45.1% 570,040,894$ 239,915,493$ 42.1% 579,280,239$ 9,239,345$

101.6%
Prior Year FY 2024-25 Current Year FY 2025-26
26 21

• License, Fees, and Permits is projected to finish the year with a projected surplus of $ 2.5 million.
•

Use of Money and Property

is expected to finish the year with a surplus of $

5.1 million.

•

Operating Transfers

In
is

projected to finish the year with a

surplus

of $

2.2 million.

Collectively, a surplus of $9.2

million is projected across all

revenue

classifications for FY 2025
-26.

General Fund-Operating Fund Revenue by Classification
The City’s General Fund-Operating Fund revenue budget for FY 2025 - 26 increased by $16.4 million or

5.7% for a total

of
$ 30

3.5 million. This is

largely due to steady growth in Operating Transfers In

,
Licenses, Fees and Permits,

and

Use of Money and Property

The details

revenue activity

as of

the
second quarter of FY 2025

-
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 , IT and homelessness

operations
.

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

generate a year
-end
surplus

of $
312,000

driven by

increases from

most classifications shown

in the

table

below
, which is
offset by a projected deficit in

Taxes due
to

lower receipts from utility users
’

tax
.

General Fund-Operating Fund Revenues by Classification

As of

December 31
, 2025 , the General Fund -Operating Fund realized revenues of $ 108.8

million,
achieving 35

.8
% of the FY 2025

-
26 revenue budget. During the same period ending

December 31
,
2024

, the City realized $
109.4

million in revenues, representing

38.1 % of the

FY
2024

-
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.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Taxes 203,088,319$ 67,577,063$ 33.3% 203,810,470$ 67,003,351$ 32.9% 200,867,577$ (2,942,893)$ 98.6% Licenses, Fees and Permits 16,936,668$ 5,027,457$ 29.7% 18,865,230$

4,660,475$ 24.7% 20,246,920$ 1,381,690$ 107.3% Fines, Forfeitures and Penalties 642,774$ 333,158$ 51.8% 2,115,090$ 1,255,471$ 59.4% 2,042,910$ (72,180)$ 96.6% Use of Money and Property 7,154,388$ 3,627,392$ 50.7% 9,014,403$ 4,814,699$ 53.4% 9,141,660$ 127,257$ 101.4% Intergovernmental 490,127$ 45,357$

9.3% 435,630$ 377,356$ 86.6% 520,800$ 85,170$

119.6%
Charges for Services 25,217,466$ 11,927,104$ 47.3% 25,928,210$ 12,942,419$ 49.9% 26,196,060$ 267,850$ 101.0% Other Revenues 319,604$ 86,858$

27.2% 81,310$

341,139$ 419.6% 369,560$ 288,250$ 454.5% Operating Transfers In 33,216,309$ 20,796,583$ 62.6% 43,259,345$ 17,361,633$ 40.1% 44,435,825$ 1,176,480$ 102.7% Other Financing Sources -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Total Revenues 287,065,655$ 109,420,972$ 38.1% 303,509,688$ 108,756,543$ 35.8% 303,821,312$ 311,624$

100.1%
Prior Year FY 2024-25 Current Year FY 2025-26
27 22

Most General Fund -Operating Fund revenues 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. 2% of the City’s

General Fund
-Operating Fund revenue
budget for

20 25
-26.

General Fund-Operating Fund Tax Revenue by Classification

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

of
the FY 2025

-
26 amended budget by $2.9
million, primarily driven by a shortfall in utility users’

tax of $3.6 million, property taxes of $

36 1
,000

,
construction tax of $

266,000

, and business license tax of
$196,000

,
which is offset by a projected
surplus from sales and use tax of $1.5 million. Details of the

changes and trends

are discussed in the
following sections.

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.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projecte
d
% of
Sales and Use Tax 62,525,957$ 19,294,015$ 30.9% 61,701,050$ 20,921,237$ 33.9% 63,173,168$ 1,472,118$ 102.4% Property Taxes 67,850,489$ 20,930,306$ 30.8% 72,011,450$ 21,856,752$ 30.4% 71,650,383$ (361,067)$ 99.5% Utility Users Tax 46,002,866$ 18,556,833$ 40.3% 43,313,300$ 16,297,859$ 37.6% 39,734,810$ (3,578,490)$ 91.7% Business License Tax 11,314,294$ 3,380,760$ 29.9% 11,644,650$ 2,737,705$ 23.5% 11,448,768$ (195,882)$ 98.3% Occupancy Tax 13,815,048$ 4,316,660$ 31.2% 13,305,020$ 4,526,445$ 34.0% 13,291,448$ (13,572)$ 99.9% Construction Tax 1,572,665$ 1,097,227$ 69.8% 1,830,000$ 661,976$ 36.2% 1,564,000$ (266,000)$ 85.5% Oil Severance Tax 7,000$ 1,263$ 18.0% 5,000$ 1,377$ 27.5% 5,000$ -$ 100.0% Total Revenues 203,088,319$ 67,577,064$ 33.3% 203,810,470$ 67,003,351$ 32.9% 200,867,577$ (2,942,893)$ 98.6% Prior Year FY 2024-25 Current Year FY 2025-26
Autos &
Transportation 22%
Building &
Construction 7%
Business & Industry
9%
Food & Drugs 3%
Fuel & Service
Stations 4%
General Consumer
Goods 24%
Restaurants &
Hotels 11%
State and County
Pool 19%
Transfers 0%
Sales Tax by Industry Group
28 23

Receipts of $20.9 million through the second fiscal quarter are tracking

above
prior year’s actuals by
$1.6 million or 8.4% while the projected annual amount

is estimated to be over
budget by $ 1.5
million, or

2 .4%. Sales tax receipts peaked in FY 2021

-
22 at $63.6 million

and
are projected to

increase

6.7% 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

T
ransportation

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

rebounding
after three successive declining years since FY 2021 -22, s

taff

continue to be cautious with

forecasts
. The Fed decreased the Federal Funds Rate to

a range of

3.75-

4.00 %

October

202
5, and the

Fed’s
policy to slow inflation has affected sales across industries.

An
additional decrease to 3.50%-3.75% occurred in December 2025, and t he most recent

Federal
Reserve Meeting in January 2026 saw rates holding steady

3.50 -

3.75%. For instance, the Autos and
Transportation

and Fuel and Service Stations categories have experienced a decrease

over the past
year. In addition, the January 2026

Consumer Price Index for All Urban Consumers (CPI-U) was

2 .4%.

The inflation rate continues to drive up the cost of many taxable products , and consumer spending is anticipated

increase only slightly
through the

end of the

202
6 calendar year.

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

FY
2025

-
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.

29 24

Property tax revenues are primarily received in December and April each year. As of

December 31
,
2025

,
$21.9 million in property tax receipts had been received, which was

4.4% higher or $926,000
more than

the same period
last year. Presently, the City projects the to tal year-end revenue to be slightly lower than the property tax budget by $361,000

for FY 2025

-
26, including

property

t
ransfer
tax

and v
ehicle

l
icense

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

through
the second fiscal
quarter.

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.

Residential, 67%
Commercial,
16%
Industrial, 8%
All Other, 8%
Land Use Composition by Taxable Value
Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Electricity 21,080,357$ 11, 057,247$ 52.5% 23,690,150$ 9,402,776$ 39.7% 22,666,880$ (1,023,270)$ 95.7% Gas 6,003,793$ 1,864,184$ 31.1% 5,475,770$ 1,684,749$ 30.8% 5,042,580$ (433,190)$ 92.1% Refinery: Co-Gen 893,601$

270,048$ 30.2% 718,020$ 392,705$ 54.7% 688,420$ (29,600)$ 95.9% Refinery: Gas 8,650,211$ 1,145,138$ 13.2% 3,775,320$ 1,023,635$ 27.1% 2,456,720$ (1,318,600)$

65.1%
Water 3,760,058$ 1,967,536$ 52.3% 4,087,660$ 1,887,460$ 46.2% 4,251,900$ 164,240$ 104.0% Cable 1,737,373$ 488,865$ 28.1% 1,315,050$ 501,643$ 38.1% 1,235,110$ (79,940)$ 93.9% Cellular 1,298,908$ 990,241$ 76.2% 2,056,840$ 577,844$ 28.1% 1,411,750$ (645,090)$

68.6%
Telecom 2,578,565$ 773,573$ 30.0% 2,194,490$ 827,047$ 37.7% 1,981,450$ (213,040)$

90.3%
Total Revenues 46,002,866$ 18,556,832$ 40.3% 43,313,300$ 16,297,859$ 37.6% 39,734,810$ (3,578,490)$ 91.7% Prior Year FY 2024-25 Current Year FY 2025-26
30 25

Current period receipts total $16.3 million, which is 1 2.2% lower than the amount received during the same period last year . Refinery: Gas and

Electricity experienced

the
most significant decrease

s
,
mainly

due to turnaround maintenance at the Refinery and

a one
-time payment received

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

3.6 million, or 8.3%.

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

starting
February 1. As
of December 31, 2025

, business license tax receipts
were $2.7 million and 19.0% lower than the prior
year

and are

projected

fall short of

the year
-end

budget

1. 7%.

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

December 31
, 2025, the City has received $4.5 million

,
a decrease

of $200,000

compared
to December 31 , 2024

,
receipts of $ 4.3 million . According to STR Global, an industry leader in hospitality data and analytics, occupancy rates hovered around 80.6% from

January
1, 202

5 , to
December 31 , 2025,

a decrease of

1.1% from the same period the previous year. In addition , the average daily rate per room

has
increased by $ 4.94 (+3.2%), from $ 154.89

per night to $ 159.83

per
night. The City’s occupancy rates

have stabilized
after having exceed ing 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 budget by

approximately $
14,000

0. 1%.

Licenses, Fees & Permits
This revenue source accounts primarily for development -related fees such as building and inspection fees. As of December 31 , 2025

, actual receipts of $

4.7 million represent a

7 .3% decrease
from prior year receipts and is primarily attributable to

the
timing of

Gable House development

receipts. Overall, revenues are projected to

exceed
budget expectations by $1.4 million, or 7.3%, 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 December 31 , 2025

, actual receipts of $

4.8 million represent a

32 .7
% increase

from prior year’s
receipts of $3.6

million
. This is

due to
increases in

investment

income from steady interest rates

and
31 26

rising balances in the City’s investment holdings . It is anticipated that this revenue source will exceed budget

expectations by
$127,000

1.4%

fiscal year
-end.

Fines, Forfeitures & Penalties
This revenue source includes general court fees, traffic fines, and citation revenues. As of December 31 , 2025

, actual receipts of $

1.3 million

represent a significant increase from last year’s

receipts of
$333

,
00 0.

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

fall short of

budget by about $
72 ,
000

3.4 %.

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

December
31 ,
2025

, actual receipts

totaled
$12

.9
million, exceeding last year’s receipts of $ 11.9 million for the same period.

The $ 1.0 million increase is primarily attributed to higher receipts collected by the Community Development Department for

Plan Check Fees, Green Building Code Fees, Handicap Inspection Fees, and Expedited Plan Check Fees, as well as an increase in Emergency Transport Fees collected by the Fire Department. Overall, this classification is expected to

exceed
budget by

$
268,000

,
or 1.0%, by
fiscal year-end.

General Fund-Measure SST Fund Revenue by Classification

4,285$ 26.6% 5,790$ 3,764$ 65.0% 7,820$ 2,030$ 135.1% Finance -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Community Development 6,220,288$ 2,425,605$ 39.0% 5,753,410$ 3,141,770$ 54.6% 6,309,390$ 555,980$ 109.7% General Services 1,136,049$ 491,702$ 43.3% 1,016,700$ 414,429$ 40.8% 856,730$ (159,970)$ 84.3% Non-Departmental 16,491$

7,598$ 46.1% 17,050$

9,234$ 54.2% 18,760$

1,710$ 110.0%
Police 448,673$ 174,970$ 39.0% 369,200$ 164,509$ 44.6% 345,820$ (23,380)$ 93.7% Fire 11,139,044$ 5,042,522$ 45.3% 11,620,500$

5,486,925$ 47.2% 11,595,760$

(24,740)$ 99.8%
Public Works 267,151$ 193,557$ 72.5% 560,110$ 14,248$

2.5% 560,110$ -$ 100.0%
Community Services 5,207,992$ 3,427,130$ 65.8% 5,838,740$ 3,523,413$ 60.3% 5,765,160$ (73,580)$ 98.7% Total Revenues 25,217,466$ 11,927,105$ 47.3% 25,928,210$ 12,942,418$ 49.9% 26,196,060$ 267,850$

101.0%
Prior Year FY 2024-25 Current Year FY 2025-26
Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Taxes 25,345,116$ 8,328,634$ 32.9% 26,154,000$ 8,754,059$ 33.5% 26,799,000$ 645,000$ 102.5% Use of Money and Property (177,850)$ 19,264$

-10.8% 29,606$

204,997$ 692.4% 120,120$ 90,514$

405.7%
Total Revenues 25,167,266$ 8,347,898$

33.2% 26,183,606$ 8,959,056$

34.2% 26,919,120$ 735,514$

102.8%
Prior Year FY 2024-25 Current Year FY 2025-26
32 27

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 $ 9.0 million through

December 31, 202

5 are tracking

above
prior year’s actuals by
$611,000

,
or 7.3%. The projected annual amounts

are expected to exceed
budget by $736

,0
00 mainly
due to

an increase

from
tax receipts.

33 EXPENDITURES
Mid-Year Budget Review Report
34 28

Expenditures
Citywide Expenditures by Fund

As of

December 31
, 2025, across all funds, the City realized expenditures of

$
299.6

million
, achieving

50.6 %
of

the FY 2025

-
26 citywide expenditure budget. During the same period ending

December 31
,
2024

, the City expended
$275.7

million
,

52.3 %,

of the

FY 2024

-
25 citywide expenditure budget.

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

Airport Fund, Transit
Fund, Fleet Services Fund,

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

The year-to-date increase in

the
General Fund-Operating Fund of $13.9

million was mainly due to

the
planned pay and benefit adjustments, updated CalPERS rates, and increased transfers to the Capital Improvement Fund. The year-to-date increase in the Airport Fund of

8.4 million was mainly due to
increased litigation costs and higher transfers to Airport Capital Fund for approved capital projects.

The Transit Fund’s

increase

d
expenditure

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

the
Transit Capital Fund.

The Fleet Services Fund
showed an increase in expenditures due to the consolidation of vehicle maintenance costs in the Fleet Services Fund beginning in FY 2025 -26, combined with rising costs for vehicle parts, as well as an increase in Depreciation and Amortization as a result of

an
increased number of newer

vehicles
.

Fund
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
General Fund-Operating Fund 287,514,706$ 148,840,769$ 51.8% 311,565,816$ 162,764,788$ 52.2% 304,515,282$ 7,050,534$ 97.7% General Fund-Measure SST 27,495,124$ 19,861,879$ 72.2% 26,183,606$ 15,425,555$ 58.9% 25,589,152$ 594,454$ 97.7% General Fund -Restricted 166,175$ 69,393$

41.8% 7,471,489$ 84,519$

1.1% 7,462,524$ 8,965$ 99.9%
General Fund-Assigned 6,630,279$ 5,570,502$ 84.0% 7,517,299$ 3,398,822$ 45.2% 7,428,000$ 89,299$

98.8%
Total General Fund 321,806,284$ 174,342,543$ 54.2% 352,738,210$ 181,673,684$ 51.5% 344,994,958$ 7,743,252$

97.8%
AQMD Fund 277,141$ 134,241$ 48.4% 360,478$ 244,587$ 67.9% 327,556$ 32,922$

90.9%
Debt Service Fund 23,107,338$ 15,440,956$ 66.8% 23,625,753$ 16,047,732$ 67.9% 23,625,753$ -$ 100.0% Low Mod Fund 65,061$ 28,777$ 44.2% 70,338$

27,934$

39.7% 50,838$ 19,500$ 72.3% Meadow Park Parking Lot District 29,064$

10,617$

36.5% 33,705$

14,515$

43.1% 32,000$

1,705$ 94.9%
Section 8 Housing 8,825,679$ 4,344,676$ 49.2% 9,590,801$ 4,665,088$ 48.6% 9,505,439$ 85,362$

99.1%
Street Lighting Fund 1,866,272$ 766,227$ 41.1% 1,937,828$ 801,391$ 41.4% 1,950,000$ (12,172)$ 100.6% Traffic Safety Fund 180,000$ -$ 0.0% 70,950$

46,910$

66.1% 55,110$ 15,840$ 77.7% Vanpool Fund 245,871$ 129,017$ 52.5% 261,749$ 94,883$

36.2% 190,024$ 71,725$ 72.6% Total Nonmajor Governmental Funds 34,596,426$ 20,854,511$ 60.3% 35,951,602$ 21,943,040$ 61.0% 35,736,720$ 214,882$

99.4%
Airport Fund 17,958,142$ 10,264,515$ 57.2% 28,531,635$ 18,629,672$ 65.3% 32,586,119$ (4,054,484)$ 114.2% Sanitation Fund 20,062,665$ 7,839,750$ 39.1% 20,035,722$ 8,171,922$ 40.8% 18,512,340$ 1,523,382$ 92.4% Sewer Fund 5,823,593$ 3,082,699$ 52.9% 7,131,592$ 4,413,401$ 61.9% 7,001,311$ 130,281$ 98.2% Transit Fund 41,472,492$ 18,323,958$ 44.2% 46,791,919$ 21,298,991$ 45.5% 43,902,522$ 2,889,397$ 93.8% Water Fund 51,905,219$ 26,267,502$ 50.6% 61,326,156$ 23,815,180$ 38.8% 58,644,367$ 2,681,789$ 95.6% Total Enterprise Funds 137,222,111$ 65,778,424$ 47.9% 163,817,024$ 76,329,166$ 46.6% 160,646,659$ 3,170,365$

98.1%
Fleet Services Fund 8,940,680$ 4,448,582$ 49.8% 14,054,487$ 6,818,940$ 48.5% 13,955,717$ 98,770$ 99.3% Self-Insurance Fund 23,514,888$

10,175,199$ 43.3% 24,301,818$ 12,741,636$ 52.4% 25,659,662$ (1,357,844)$ 105.6% Total Internal Service Funds 32,455,568$ 14,623,781$ 45.1% 38,356,305$ 19,560,576$ 51.0% 39,615,379$ (1,259,074)$ 103.3% Redevelopment Agency Fund 1,401,953$ 115,426$ 8.2% 1,252,179$ 69,500$

5.6% 1,246,979$ 5,200$ 99.6%
Total Fiduciary Funds 1,401,953$

115,426$

8.2% 1,252,179$

69,500$ 5.6% 1,246,979$

5,200$ 99.6%
Total Expenditures 527,482,342$ 275,714,685$ 52.3% 592,115,320$ 299,575,966$ 50.6% 582,240,695$ 9,874,625$

98.3%
Prior Year FY 2024-25 Current Year FY 2025-26
35 29

The Self-Insurance Fund showed an increase in expenditure s due to higher insurance premium and legal costs.

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

in
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 FY 2025

-
26 :
•

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

$7.1
million, primarily driven by vacancies. As of December 31 , 2025 , the General Fund -Operating Fund has

1 67.35

full-time equivalent (FTE) vacant positions, an increase

of 13.25 FTE from
154

FTE vacancies as of

December 31
, 2024

•

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

$
594

,000
primarily
driven by savings resulting from the use of grant funding to address homelessness efforts in the City.
•

The Self-Insurance Fund will operate at a projected

deficit
of

1.4 million

due
to an increase
in projected expenditures related to liabilities and settlements. •

The Enterprise Funds will operate at a projected surplus of

3.2 million overall, led by the
Transit Fund, Water Fund, Sanitation Fund, and Sewer Fund , partially offset by a projected deficit in

the Airport Fund
.

Citywide Expenditures by Classification

Classification
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 255,061,547$ 124,591,380$ 48.8% 276,865,954$ 138,516,072$ 50.0% 271,189,788$ 5,676,166$ 97.9% Salaries and Benefits Reimbursements (2,400,500)$ (1,317,791)$ 54.9% (1,770,500)$ (903,821)$ 51.0% (1,853,000)$ 82,500$ 104.7% Materials, Supplies & Maintenance 36,223,158$ 14,300,251$ 39.5% 30,121,545$ 12,024,768$ 39.9% 28,237,333$ 1,884,212$ 93.7% Materials Reimbursements (1,385,142)$ (574,492)$ 41.5% (841,189)$ (323,076)$ 38.4% (773,428)$ (67,761)$ 91.9% Parts, Fuel & Lubricants Inventory Purchases 5,637,548$ 2,199,935$ 39.0% 6,067,548$ 2,439,680$ 40.2% 5,826,500$ 241,048$ 96.0% Parts, Fuel & Lubricants Contra (5,634,548)$ (2,199,935)$ 39.0% (6,067,548)$ (2,439,680)$ 40.2% (5,826,500)$ (241,048)$ 96.0% Professional/Contract Services 34,914,405$ 11,044,185$ 31.6% 43,978,061$ 14,016,509$ 31.9% 39,868,295$ 4,109,766$ 90.7% Water Supply Costs 34,785,000$ 17,686,766$ 50.8% 40,477,000$ 13,570,340$ 33.5% 39,390,000$ 1,087,000$ 97.3% Training, Travel & Membership Dues 2,406,353$ 1,114,003$ 46.3% 2,664,631$ 1,118,876$ 42.0% 2,385,347$ 279,284$ 89.5% Depreciation and Amortization 6,677,026$ 2,744,115$ 41.1% 12,926,518$ 5,397,207$ 41.8% 11,775,620$ 1,150,898$ 91.1% Liabilities, Settlements & Insurance 19,186,676$ 9,439,269$ 49.2% 19,174,404$ 11,705,073$ 61.0% 20,577,795$ (1,403,391)$ 107.3% Utilities 7,542,553$ 3,442,153$ 45.6% 8,222,196$ 3,740,427$ 45.5% 8,492,945$ (270,749)$ 103.3% Interdepartmental Charges 41,293,653$ 20,362,533$ 49.3% 51,341,687$ 24,918,885$ 48.5% 50,282,922$ 1,058,765$ 97.9% Debt Service 50,104,749$ 32,835,700$ 65.5% 51,921,257$ 34,082,868$ 65.6% 51,810,687$ 110,570$ 99.8% Debt Service Reimbursements (21,436,950)$ (11,512,012)$ 53.7% (22,760,135)$ (12,348,884)$ 54.3% (23,676,790)$ 916,655$ 104.0% Capital Acquisitions 43,826,950$ 7,831,413$ 17.9% 25,546,383$ 10,019,580$ 39.2% 22,222,805$ 3,323,578$ 87.0% Asset Contra Account (41,288,840)$ (7,007,558)$ 17.0% (22,093,799)$ (8,757,482)$ 39.6% (19,188,643)$ (2,905,156)$ 86.9% Bad Debts and Other Losses 3,238,860$ 55,205$ 1.7% 3,256,000$ 64,332$ 2.0% 3,082,798$ 173,202$ 94.7% Other Expenditures 53,500$ 40,891$ 76.4% 98,500$ 46,357$ 47.1% 95,000$ 3,500$ 96.4% Reimbursements-Indirect Costs (9,147,553)$ (4,416,600)$ 48.3% (10,741,685)$ (4,651,648)$ 43.3% (9,542,153)$ (1,199,532)$ 88.8% Other Operating Transfers Out 67,823,897$ 55,055,274$ 81.2% 83,728,492$ 57,339,583$ 68.5% 87,863,374$ (4,134,882)$ 104.9% Total Expenditures 527,482,342$ 275,714,685$ 52.3% 592,115,320$ 299,575,966$ 50.6% 582,240,695$ 9,874,625$ 98.3% Prior Year FY 2024-25 Current Year FY 2025-26
36 30

The summary table above shows the citywide expenditure budget by classification. As of December 31, 2025

, across all major funds, the City realized expenditures of

$
299.6

million,

representing

50.6 %

of the

FY 2025

-
26 citywide expenditure budget. During the same period ending

December 31
,
2024

, the City expended
$275.7

million

52.3 %

of the

FY 2024

-
25 citywide expenditure budget. The
main drivers

for this increase of

$
23 .9 million
include

the

planned

pay and benefit adjustments

and

updated CalPERS

rates
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

,
and

increase in

Interdepartmental Charges

resulting

from the
reclassification of fleet
maintenance cost from Materials, Supplies & Maintenance classification starting FY 2025

26. As shown under the “Projected Surplus/(Deficit)” column in the previous table, the following year- end results are projected for FY 2025

-
26 :

•

Salary and Employee Benefits are expected to

finish the year
with a projected surplus of

5.7 million, primarily

due to position vacancies
.
•

Professional/Contract Services are projected to finish the year with a projected surplus of $4.1 million.
•

Capital Acquisitions is expected to finish the year with a surplus of

$3.3 million.

•

Other Operating Transfers Out

are

projected to finish the year with a

deficit of

4.1 million
.

Collectively, a surplus of

9.9 million is projected across all expenditure classifications for

FY 2025

26. Citywide Expenditures by Department

Department
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Council 577,734$ 255,476$ 44.2% 889,517$ 357,268$ 40.2% 810,985$ 78,532$ 91.2% City Manager 8,638,083$ 3,440,808$ 39.8% 9,716,311$ 4,047,085$ 41.7% 8,643,219$ 1,073,092$ 89.0% City Attorney 3,397,091$ 1,458,560$ 42.9% 3,530,890$ 1,587,893$ 45.0% 3,291,271$ 239,619$ 93.2% City Clerk 1,664,355$ 557,825$ 33.5% 2,160,981$ 691,842$ 32.0% 2,123,826$ 37,155$ 98.3% Civil Service 1,144,051$ 422,326$ 36.9% -$ -$ 0.0% -$ -$ 0.0% City Treasurer 483,686$ 187,133$ 38.7% 419,207$ 193,099$ 46.1% 401,026$ 18,181$ 95.7% Finance 31,673,312$ 13,675,398$ 43.2% 30,607,594$ 15,677,339$ 51.2% 31,904,175$ (1,296,581)$ 104.2% Human Resources 3,490,054$ 1,516,531$ 43.5% 3,612,763$ 1,712,884$ 47.4% 3,471,158$ 141,605$ 96.1% Community Development 21,170,147$ 9,551,621$ 45.1% 23,085,141$ 10,574,375$ 45.8% 22,297,207$ 787,934$ 96.6% IT 11,856,190$ 4,956,121$ 41.8% 17,821,557$ 6,519,788$ 36.6% 16,414,902$ 1,406,655$ 92.1% General Services 38,898,974$ 20,563,009$ 52.9% 55,630,304$ 31,746,054$ 57.1% 58,886,977$ (3,256,673)$ 105.9% Non-Departmental 66,106,268$ 58,063,547$ 87.8% 75,501,653$ 53,453,816$ 70.8% 75,617,963$ (116,310)$ 100.2% Police 102,114,294$ 50,523,060$ 49.5% 109,997,668$ 55,230,953$ 50.2% 107,439,877$ 2,557,791$ 97.7% Fire 69,315,045$ 33,989,198$ 49.0% 70,590,227$ 35,408,344$ 50.2% 71,283,010$ (692,783)$ 101.0% Public Works 98,902,970$ 46,335,503$ 46.8% 113,422,234$ 47,963,363$ 42.3% 108,428,460$ 4,993,774$ 95.6% Community Services 26,577,596$ 11,894,611$ 44.8% 28,337,354$ 13,112,872$ 46.3% 27,324,117$ 1,013,237$ 96.4% Transit 41,472,492$ 18,323,958$ 44.2% 46,791,919$ 21,298,991$ 45.5% 43,902,522$ 2,889,397$ 93.8% Total Expenditures 527,482,342$ 275,714,685$ 52.3% 592,115,320$ 299,575,966$ 50.6% 582,240,695$ 9,874,625$ 98.3% Prior Year FY 2024-25 Current Year FY 2025-26
37 31

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

9.9 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

December 31
, 2025

Citywide,
there are a total of

210.0

vacancies at an estimated annual value of $27.9 million.

The estimated
annual savings quantifies cost savings if these vacancies were to remain vacant throughout the fiscal year, which differ s 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

FY 2025

-
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
Departments section of this
document.

Department
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 3.00 - - - 3.00 372,311 - - - 372,311 City Clerk - - - - - - - - - - City Manager 7.00 - - - 7.00 871,515 - - - 871,515 City Treasurer - - - - - - - - - - Community Development 6.60 1.00 0.40 - 8. 00 827,409 108,191 61,875 - 997,475 Community Services 15.00 - - - 15.00 1,478,815 - - - 1,478,815 Council - - - - - - - - - - Finance 2.00 - - - 2.00 218,402 - - - 218,402 Fire 18.50 - - - 18.50 482,992 - - - 482,992 General Services 9.00 - - 4.00 13.00 913,698 - - 430,814 1,344,512 Human Resources 1.00 - - - 1.00 83,344 - - - 83,344 IT 10.00 - - - 10.00 1,579,587 - - - 1,579,587 Police 77.00 - - - 77.00 14,723,999 - - - 14,723,999 Public Works 18.25 - 15.75 - 34.00 1,846,125 - 1,643,076 - 3,489,201 Transit - - 21.50 - 21.50 - - 2,248,218 - 2,248,218 Total 167.35 1.00 37.65 4.00 210.00 23,398,197 108,191 3,953,169 430,814 27,890,371 Vacant Full-Time Equivalents (FTEs) Estimated Annual Savings 38 32

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

$
693

,000
, primarily due to overage in overtime needed to maintain constant staffing levels. The Non-Departmental expenditure budget is

projected
to operate at

a deficit of
$120,000

,
primarily due to a

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

$
987

,000
h igher payroll

-
related Debt Service
Reimbursements. Overall, the

FY 2025

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

$7.1

million
in savings, largely due to departmental vacancies.

As of

December 31
, 2025, there were

167.35

FTE vacant positions in the General Fund,
an increase

13.25 FTE from the previous year number of

154.1

vacant positions on December 31, 2024

. 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 77 .0 FTE vacant positions as of

December
31 , 2025

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

Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
City Council 577,734$ 255,477$ 44.2% 889,517$ 357,269$ 40.2% 810,985$ 78,532$ 91.2% City Manager 7,736,510$ 3,397,436$ 43.9% 9,070,057$ 4,013,898$ 44.3% 8,573,031$ 497,026$ 94.5% City Attorney 3,397,091$ 1,458,560$ 42.9% 3,530,890$ 1,587,893$ 45.0% 3,291,271$ 239,619$ 93.2% City Clerk 1,664,355$ 557,825$ 33.5% 2,160,981$ 691,841$ 32.0% 2,123,826$ 37,155$

98.3%
City Treasurer 483,686$ 187,134$ 38.7% 419,207$ 193,099$ 46.1% 401,026$ 18,181$

95.7%
Finance 6,263,088$ 2,723,356$ 43.5% 6,305,776$ 2,935,703$ 46.6% 6,244,513$ 61,263$

99.0%
Human Resources 3,244,183$ 1,387,514$ 42.8% 3,351,014$ 1,618,001$ 48.3% 3,281,134$ 69,880$

97.9%
Civil Service 1,144,051$ 422,327$ 36.9% -$ -$ 0.0% -$ -$ 0.0% Community Development 10,600,313$ 4,928,500$ 46.5% 11,777,640$ 5,552,752$ 47.1% 11,134,394$ 643,246$ 94.5% CIT 9,400,911$ 4,293,907$ 45.7% 14,489,458$ 5,512,082$ 38.0% 13,180,302$ 1,309,156$ 91.0% General Services 12,000,152$ 5,849,911$ 48.7% 13,044,182$ 6,297,442$ 48.3% 12,345,142$ 699,040$ 94.6% Non-Departmental 12,064,204$ 17,826,402$ 147.8% 14,881,860$ 19,584,541$ 131.6% 15,002,320$ (120,460)$

100.8%
Police 101,934,294$ 50,523,060$

49.6% 109,926,718$ 55,184,043$ 50.2% 107,384,767$

2,541,951$ 97.7%
Fire 69,315,045$ 33,989,198$ 49.0% 70,590,227$ 35,408,344$ 50.2% 71,283,010$ (692,783)$

101.0%
Public Works 21,111,493$ 9,145,550$ 43.3% 22,990,936$ 10,761,469$ 46.8% 22,320,443$ 670,493$ 97.1% Community Services 26,577,596$ 11,894,611$ 44.8% 28,137,354$ 13,066,409$ 46.4% 27,139,117$ 998,237$ 96.5% Total Expenses 287,514,706$ 148,840,768$ 51.8% 311,565,817$ 162,764,786$ 52.2% 304,515,281$ 7,050,536$

97.7%
Prior Year FY 2024-25 Current Year FY 2025-26
39 33

General Fund-Operating Fund Expenditures by Classification

As of

December 31
, 2025, the General Fund-Operating Fund realized

expenditures of

$
162.8

million,
achieving 52.2

%
of the FY 2025

-
26 expenditure budget. During the same period ending December 31, 2024

, the City expended $
148.8

million or 51.8% of the

FY 2024

-
25 expenditure budget. The main
drivers for this increase of

14.0 million were the

planned
pay and benefit adjustments and updated
CalPERS rates in Salaries and Employee Benefits , increase

s
in Operating Transfers Out for Capital
Improvement projects, and an increase in Fleet Vehicle Maintenance cost in the Interdepartmental Charges classification. T he higher per centage of expenditures to date

in the Debt Service and
Operating Transfers Out

classifications
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 -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 211,717,970$ 105,127,575$ 49.7% 230,931,076$ 116,260,541$ 50.3% 227,213,039$ 3,718,037$ 98.4% Salaries and Benefits Reimbursements (2,400,500)$ (1,313,567)$

54.7% (1,770,500)$ (903,821)$

51.0% (1,853,000)$ 82,500$

104.7%
Materials, Supplies & Maintenance 16,667,034$ 6,591,192$ 39.5% 11,100,218$

4,242,897$ 38.2% 10,328,715$ 771,503$ 93.0% Materials Reimbursements (485,142)$

(277,576)$

57.2% (475,231)$

(228,033)$

48.0% (429,114)$

(46,117)$ 90.3%
Professional/Contract Services 19,529,656$ 6,529,149$ 33.4% 22,629,067$

7,281,459$ 32.2% 20,195,454$ 2,433,613$ 89.2% Training, Travel & Membership Dues 2,047,061$ 1,003,753$ 49.0% 2,358,837$ 983,948$ 41.7% 2,145,167$ 213,670$ 90.9% Liabilities, Settlements & Insurance 221,680$ 80,844$

36.5% 6,180$ 4,853$ 78.5% 4,853$ 1,327$ 78.5% Utilities 4,932,602$ 2,326,986$ 47.2% 5,390,146$ 2,534,399$ 47.0% 5,612,052$ (221,906)$

104.1%
Interdepartmental Charges 24,303,425$ 12,061,503$ 49.6% 28,169,695$ 14,084,854$ 50.0% 28,169,695$ -$ 100.0% Debt Service 23,369,441$ 15,439,906$ 66.1% 23,874,385$ 16,048,403$ 67.2% 23,874,385$ -$ 100.0% Debt Service Reimbursements (19,341,206)$ (9,701,491)$

50.2% (19,862,721)$ (10,456,347)$ 52.6% (20,850,000)$ 987,279$ 105.0% Capital Acquisitions 691,109$ 164,369$ 23.8% 808,335$ 310,368$ 38.4% 499,075$ 309,260$ 61.7% Asset Contra Account -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Bad Debts and Other Losses 1,000$ 12$

1.2% 1,000$ 12$

1.2% 100$

900$ 10.0%
Reimbursements-Indirect Costs (9,147,553)$ (4,416,600)$ 48.3% (10,741,685)$ (4,651,648)$ 43.3% (9,542,153)$ (1,199,532)$ 88.8% Other Operating Transfers Out 15,408,129$ 15,224,714$ 98.8% 19,147,014$ 17,252,903$ 90.1% 19,147,014$ -$ 100.0% Total Expenses 287,514,706$ 148,840,769$ 51.8% 311,565,816$ 162,764,788$ 52.2% 304,515,282$ 7,050,534$

97.7%
Prior Year FY 2024-25 Current Year FY 2025-26
40 34

General Fund-Measure SST Fund Expenditures by
Classification

The Measure SST Fund realized expenditures of

15.4 million or 58.9% of the

FY 2025

-
26 budget.

During the same period ending December 31 , 2024, expenditures totaled

19.9 million or 72.2

%
of
the FY 2024

-
25 budget. The decrease

4.5 million is primarily due to Other Operating Transfers Out classification, as a result of reductions in transfers to

the
Capital Improvement

Fund
by $2.6 million
and transfers to Reserve Fund by

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

year
-end except for $594,000

, 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 -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Materials, Supplies & Maintenance 727,398$ -$ 0.0% 571,254$ -$ 0.0% -$ 571,254$ 0.0% Professional/Contract Services 876,500$ 108,735$ 12.4% 1,014,800$ 155,349$ 15.3% 991,600$ 23,200$

97.7%
Other Operating Transfers Out 25,891,226$

19,753,144$

76.3% 24,597,552$ 15,270,206$ 62.1% 24,597,552$

-$ 100.0%
Total Expenses 27,495,124$ 19,861,879$ 72.2% 26,183,606$ 15,425,555$ 58.9% 25,589,152$ 594,454$

97.7%
Prior Year FY 2024-25 Current Year FY 2025-26
41 DEPARTMENTS
Mid-Year Budget Review Report
42 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

43 36

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

The City Attorney’s Office expended

1.6 million or 45.0

%
of its

FY 2025

-
26 budget, as of

December
31 , 2025.

During the same period ending

December 31
, 2024, expenditures totaled

1.5 million

, or

42.9% of the

FY
2024

-
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 $2 40,000 in expenditure savings.

These savings are primarily attributable to Salaries and Employee Benefits due to

3 .0 FTE vacancies.

City Attorney Staffing Budget Summary (General Fund)

9,005$ 16.5% 49,885$

12,282$

24.6% 37,431$

12,454$

75.0%
Professional/Contract Services 299,975$ 44,299$

14.8% 292,122$ 58,153$

19.9% 227,255$ 64,867$

77.8%
Training, Travel & Membership Dues 47,775$

14,027$

29.4% 46,346$

12,820$

27.7% 43,562$

2,784$ 94.0%
Utilities 5,250$ 1,501$ 28.6% -$ -$ 0.0% -$ -$ 0.0% Interdepartmental Charges 55,796$

27,900$

50.0% 49,307$

24,654$

50.0% 49,307$

-$ 100.0%
Total Expenses 3,397,091$

1,458,560$

42.9% 3,530,890$ 1,587,893$

45.0% 3,291,339$

239,551$

93.2%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 -

-$
Legal Assistant II 4.00

4.00 4.00

4.00 - -$
Total FTE 14.00

14.00 15.00

15.00 - -$
44 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

45 38

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

As of

December
31, 2025, the City Clerk’s Office realized $5,000

in revenues, representing

85.8 % of
the

FY 2025

-
26 revenue budget.

During the same period ending

December 31
, 2024, the City realized
$4,300

26. 8% of the

FY 2024

-
25 revenue budget.

The

decrease in Charges for Services is primarily
attributable to a lower volume of requests for copies. This is partially offset by an increase in Other Revenues due to reimbursements from the County of Los Angeles. Overall, year-end revenues are projected to finish slightly

over

budget by approximately $
3,300.

On the expenditure side, the department expended $692,000 or 32.0% of its FY 2025

-
26 budget, as of
December 31 , 2025.

During the same period ending

December 31
, 2024, expenditures totaled
$558,000

or 33.5

% of the

FY 2024

-
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
$37

,
000 surplus, driven by Professional/Contract Services classification for lower projected record storage and shredding cost,

partially offset by

anticipated
overages in
Salaries and Employee Benefits due to the

department being staffed at levels exceeding the assumed vacancy factor in the adopted budget.

City Clerk Staffing Budget Summary (General Fund)

0.0% -$ 1,204$ 0.0% 1,240$ 1,240$ 0.0% Total Revenues 16,117$ 4,315$ 26.8% 5,790$ 4,968$ 85.8% 9,060$ 3,270$ 156.5% Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 1,126,334$ 451,019$ 40.0% 1,115,872$ 573,038$ 51.4% 1,140,008$ (24,136)$ 102.2% Salaries and Benefits Reimbursements -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Materials, Supplies & Maintenance 24,885$

1,319$ 5.3% 15,454$

4,190$ 27.1% 14,472$

982$ 93.6%
Professional/Contract Services 440,050$ 67,075$

15.2% 956,297$ 82,618$

8.6% 907,155$ 49,142$

94.9%
Training, Travel & Membership Dues 15,225$

9,486$ 62.3% 19,983$ 5,308$ 26.6% 8,815$ 11,168$

44.1%
Interdepartmental Charges 57,861$

28,926$

50.0% 53,375$

26,688$

50.0% 53,375$

-$ 100.0%
Total Expenses 1,664,355$

557,825$

33.5% 2,160,981$

691,842$

32.0% 2,123,825$ 37,156$ 98.3%
Revenues Less Expenditures (1,648,238)$ (553,510)$ (2,155,191)$ (686,874)$ (2,114,765)$ 40,426$ Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 - -$ 46 39

City Council

Mission Statement

The mission of the City Council is to set policy, determine land use , and establish and responsibly manage the budget of the City. The 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

47 40

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

As of

December 31
, 2025 , t he City

Council
expended $357,000 or 40.2% of its

FY 2025

-
26 budget.

During the same period ending December 31, 2024, expenditures totaled

$
255,000

, or

44 .2
% of the
FY 2024

-
25 expenditure budget. The increase in Salaries and Employee Benefits reflects voter- approved compensation

changes

in the City Charter
.

Overall, the department is projected to end the fiscal year with $ 79,000 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 -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 187,968$ 93,669$ 49.8% 423,988$ 216,497$ 51.1% 423,335$ 653$ 99.8% Materials, Supplies & Maintenance 46,561$ 23,776$ 51.1% 40,755$ 18,545$ 45.5% 38,965$ 1,790$ 95.6% Professional/Contract Services 56,817$ 2,315$ 4.1% 45,550$ 6,893$ 15.1% 28,475$ 17,075$ 62.5% Training, Travel & Membership Dues 275,876$ 134,060$ 48.6% 379,224$ 115,333$ 30.4% 320,210$ 59,014$ 84.4% Utilities 10,512$ 1,656$ 15.8% -$ -$ 0.0% -$ -$ 0.0% Total Expenses 577,734$ 255,476$ 44.2% 889,517$ 357,268$ 40.2% 810,985$ 78,532$ 91.2% Prior Year FY 2024-25 Current Year FY 2025-26
Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 - -$ 48 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

49 42

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

As of

December 31
, 2025, a total of

$
596,000

,
or 26.0

%
of FY 2025

-
26 budgeted revenues, ha

s
been
collected. During the same period ending

December 31
, 2024, the City realized

$
504,000

in revenues,
representing 20.0

of the

FY 2024

-
25 revenue budget
.

The decrease

in
Licenses, Fees and Permits

is
primarily driven by the timing of franchise fee receipts

from
cable television companies. Conversely,
the increase in Charges for Services is driven by higher receipts related to emergency alerts at the refinery. Lastly, the increase in Operating Transfers In

is driven by the transfers from the Measure SST
Fund for

S
taff Assistant positions

that were added in December 2024

to support homelessness
efforts.

Overall, year
-end revenues are projected to

fall

slightly short of budget by

$15

3 ,000

On the expenditure side, the department expended

4.0 million or 44.3% of its

FY 2025

-
26 budget, as
of December 31, 2025.

During the same period ending December 31, 2024, expenditures totaled $3.4
million, or 43.9

%
of the

FY 2024

-
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 FY 2025- 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

7 .0 FTE vacancies, as well
as in

Professional/Contract Services
due to reduced costs related to

various
contract services that
are not

projected to be utilized.

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Licenses, Fees and Permits 1,645,918$ 323,369$ 19.6% 1,316,120$ 313,692$ 23.8% 1,172,950$ (143,170)$ 89.1% Charges for Services 765,661$ 159,736$ 20.9% 746,710$ 184,126$ 24.7% 736,510$ (10,200)$ 98.6% Other Revenues -$ 20,631$

0.0% -$ -$ 0.0% -$ -$ 0.0% Operating Transfers In 102,447$ -$ 0.0% 232,266$ 98,202$

42.3% 232,266$ -$ 100.0% Total Revenues 2,514,026$ 503,736$

20.0% 2,295,096$

596,020$

26.0% 2,141,726$

(153,370)$ 93.3%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 5,267,941$ 2,508,088$ 47.6% 6,396,450$ 3,217,348$ 50.3% 6,141,411$ 255,039$ 96.0% Materials, Supplies & Maintenance 218,430$ 138,745$ 63.5% 237,362$ 89,784$

37.8% 207,757$ 29,605$

87.5%
Professional/Contract Services 1,818,355$ 536,345$ 29.5% 1,848,554$ 473,938$ 25.6% 1,668,124$ 180,430$ 90.2% Training, Travel & Membership Dues 156,800$ 93,712$

59.8% 263,974$ 85,315$

32.3% 244,824$ 19,150$

92.7%
Liabilities, Settlements & Insurance -$ -$ 0.0% 6,180$ 4,853$ 78.5% 4,853$ 1,327$ 78.5% Utilities 86,826$

35,754$

41.2% 77,100$

28,877$

37.5% 70,625$

6,475$ 91.6%
Interdepartmental Charges 168,158$ 84,080$

50.0% 222,937$ 111,475$ 50.0% 222,937$ -$ 100.0% Capital Acquisitions 20,000$

713$ 3.6% 17,500$

2,308$ 13.2% 12,500$

5,000$ 71.4%
Total Expenses 7,736,510$

3,397,437$ 43.9% 9,070,057$

4,013,898$

44.3% 8,573,031$

497,026$

94.5%
Revenues Less Expenditures (5,222,484)$ (2,893,701)$ (6,774,961)$ (3,417,878)$ (6,431,305)$ 343,656$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
50 43

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

The Civil Service Division was previously presented as a separate Department in the FY 2024 - 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

FY 2025
-26
Operating Budget.

5,098$ 35.0% -$ -$ 0.0% -$ -$ 0.0% Professional/Contract Services 348,233$ 38,578$

11.1% -$ -$ 0.0% -$ -$ 0.0% Training, Travel & Membership Dues 6,947$ 4,488$ 64.6% -$ -$ 0.0% -$ -$ 0.0% Liabilities, Settlements & Insurance 6,180$ 4,878$ 78.9% -$ -$ 0.0% -$ -$ 0.0% Interdepartmental Charges 26,135$

13,068$

50.0% -$ -$ 0.0% -$ -$ 0.0% Total Expenses 1,144,051$ 422,326$

36.9% -$ -$ 0.0% -$ -$

0.0%
Prior Year FY 2024-25 Current Year FY 2025-26
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Materials, Supplies & Maintenance 727,398$ -$ 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 778,898$

17,023$ 2.2% 571,254$

-$ 0.0% -$ 571,254$

0.0%
Prior Year FY 2024-25 Current Year FY 2025-26
51 44

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

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 - -$
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

- -$

Community Television Supervisor 1.00

- - - -

Content Creator - 2.00

2.00 2.00

- -$

Deputy City Manager 2.00

2.00 1.00

1.00 - -$
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 -

-$
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 3.50

3.50 -

-$
Production Assistant II - - 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 -

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 46.25

46.25 - -$
52 45

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

53 46

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

As of

December 31
, 2025, the City

Treasurer’s
Office expended $193,000

, representing

46.1% of its FY
2025

-
26 budget. During the same period ending December 31, 2024, expenditures totaled $187,000, or 38.7

% of the

FY 2024

-
25 expenditure budget. Expenditures increased mainly due to an increase in Salaries and Employee Benefits classification, which was partially offset by the

decrease

in the
Professional/Contract Services classification because of the completion of a one -time operational audit in FY

2024

25. Overall, the department is projected to end the fiscal year with approximately $18,000 in expenditure savings,

primarily attributable to the

Pro
fessional/Contract Services classification.

City Treasurer Staffing Budget Summary (General Fund)

18.0% 46,609$

14,774$

31.7% 39,610$

6,999$ 85.0%
Training, Travel & Membership Dues 40,530$

1,492$ 3.7% 13,854$

2,425$ 17.5% 9,373$ 4,481$ 67.7% Utilities 500$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Interdepartmental Charges 4,442$ 2,220$ 50.0% 5,538$ 2,772$ 50.1% 5,538$ -$ 100.0% Total Expenses 483,686$

187,133$

38.7% 419,207$

193,099$

46.1% 401,025$

18,182$ 95.7%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 - -$ 54 47

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

55 48

CDD Operating Budget Summary (General Fund-Operating Fund)

As of

December 31
, 2025, a total of

5.6 million
,

49.8 %

FY 2025

-
26 budgeted revenues ha

been
collected. During the same period ending

December 31
, 2024, the City realized

5.4 million in
revenues, representing

48.7 %
of the

FY 2024

-
25 revenue budget. The increase in

Charges for Services

was driven by growth in plan check fees , which was partially offset by a

decrease in
Licenses, Fees
and Permits , which was primarily attributable to

a reduction in the number of

building permits
issued in the current fiscal year compared to

the prior year

Overall, year-end revenues are projected
to

exceed

budget by approximately
$415,000.

On the expenditure side, the department expended

$5.6
million or 47.1% of its

FY 2025

-
26 budget, as
of December 31, 2025.

During the same period ending December 31, 2024, expenditures totaled $4.9
million, or 46.5

%
of the FY 2024

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

with
the Salaries and Employee Benefits classification increasing by about $524

,000, due to approved pay rate and benefit adjustments and CalPERS rate increase s.

Overall, total expenditure s are projected to generate surplus of $ 643,000 by year

-
end due to
projected salary savings from

6.6 FTE vacancies.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 4,809,133$ 2,958,135$ 61.5% 5,411,000$ 2,416,601$ 44.7% 5,260,280$ (150,720)$ 97.2% Fines, Forfeitures and Penalties 25,000$

2,812$ 11.2% 14,500$

13,455$

92.8% 26,910$

12,410$

185.6%
Use of Money and Property 22,752$

11,757$

51.7% 22,000$

9,525$ 43.3% 19,050$

(2,950)$ 86.6%
Charges for Services 6,220,288$ 2,425,605$ 39.0% 5,753,410$ 3,141,770$ 54.6% 6,309,390$ 555,980$ 109.7% Other Revenues 3,308$ 156$ 4.7% -$ -$ 0.0% -$ -$ 0.0% Total Revenues 11,080,481$ 5,398,465$ 48.7% 11,200,910$ 5,581,351$

49.8% 11,615,630$ 414,720$

103.7%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 9,409,619$ 4,545,512$ 48.3% 10,524,469$ 5,069,348$ 48.2% 10,034,298$ 490,171$ 95.3% Salaries and Benefits Reimbursements (249,000)$ (99,449)$ 39.9% (249,000)$ (132,387)$ 53.2% (277,000)$ 28,000$

111.2%
Materials, Supplies & Maintenance 235,142$ 58,143$

24.7% 67,080$

27,077$

40.4% 62,523$

4,557$ 93.2%
Professional/Contract Services 488,248$ 54,979$

11.3% 665,231$ 204,304$ 30.7% 541,453$ 123,778$ 81.4% Training, Travel & Membership Dues 45,776$

30,338$

66.3% 30,575$

16,245$

53.1% 36,835$

(6,260)$ 120.5%
Liabilities, Settlements & Insurance 37,000$

31,800$

85.9% -$ -$ 0.0% -$ -$ 0.0% Utilities 28,097$

9,974$ 35.5% 16,300$

6,662$ 40.9% 13,300$

3,000$ 81.6%
Interdepartmental Charges 605,431$ 297,203$ 49.1% 722,985$ 361,502$ 50.0% 722,985$ -$ 100.0% Total Expenses 10,600,313$ 4,928,500$

46.5% 11,777,640$ 5,552,751$

47.1% 11,134,394$ 643,246$

94.5%
Revenues Less Expenditures 480,168$

469,965$

(576,730)$ 28,600$ 481,236$

1,057,966$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
56 49

CDD Operating Budget Summary (Air Quality Management District Fund)

As of

December 31
, 2025, a total of

$
103,000

,
or 48.9

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City realized

$
104,000

in revenues,
representing 50.2

of the

FY 2024

-
25 revenue budget
.

The decrease in

Use of Money and Property

is
primarily attributable to

lower
investment earnings. This decline is partially offset by an increase in Intergovernmental revenues, driven by growth in

AQMD
receipts. Overall, year -end revenues are
projected to

fall

slightly short of budget

by approximately $4,000.

On the expenditure side, the department expended $245,000 or 67.9

%
of its FY 2025

-
26 budget, as of
December 31 , 2025.

During the same period ending

December 31
, 2024, expenditures totaled
$134,000

,
or 48.4% of the

FY
20 24
-25

expenditure budget. The increase in

expenditure

s
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 . The increase is partially offset by a decrease in Interdepartmental Charges

as
the prior year expenditure related to a one-time purchase of an electric

vehicle

.
is now consolidated under

the
General Fund’s Community Development
Department operating budget. Expenditures are projected to generate

a
surplus of

$
33 ,000
primarily
in Salaries and Employee Benefits classification due to lower actuals to date and Materials, Supplies & Maintenance due to a lower participation in the Rideshare Incentive Program. Overall, the fund is projected to end the fiscal year with deficit of $121,000.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 11,906$ 7,762$ 65.2% 16,134$ 4,622$ 28.6% 14,400$ (1,734)$ 89.3% Intergovernmental 196,390$ 96,722$

49.2% 195,000$ 98,524$

50.5% 192,390$ (2,610)$ 98.7%
Total Revenues 208,296$

104,484$

50.2% 211,134$

103,146$

48.9% 206,790$

(4,344)$

97.9%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 123,639$ 23,166$ 18.7% 131,837$ 47,646$ 36.1% 113,356$ 18,481$ 86.0% Materials, Supplies & Maintenance 46,000$

11,411$

24.8% 44,620$

20,452$

45.8% 34,000$

10,620$

76.2%
Professional/Contract Services 8,300$ 1,412$ 17.0% 8,051$ 1,454$ 18.1% 4,900$ 3,151$ 60.9% Training, Travel & Membership Dues 1,000$ 50$ 5.0% 970$ 35$

3.6% 300$ 670$ 30.9%
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$

134,241$

48.4% 360,478$

244,587$

67.9% 327,556$

32,922$ 90.9%
Revenues Less Expenditures (68,845)$ (29,757)$ (149,344)$ (141,441)$ (120,766)$ 28,578$ Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
57 50

CDD Operating Budget Summary (Low Mod Fund)

On the revenue side, the fund

is projected to generate $0 revenue in FY 2025

-
26 . This decrease from
FY 2024

-
25 is due to no projected interest income on Loans from the Low Mod Fund to Redevelopment Agency (RDA) Fund

consistent with

its

repayment schedule.

On the expenditure side, the

fund
expended $28,000 or 39.7

%
of its

FY 2025

-
26 budget, as of
December 31 , 2025.

During the same period ending

December 31
, 2024, expenditures totaled
$29

,000
, or 44.2

%
of the

FY
2024

-
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 FY 2025

-
26, as of

December 31
, 2025,
compared to

$19,000

as of December 31, 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 $15,000

or 43.1

%
of its

FY 2025

-
26 budget, as of
December 31 , 2025.

During the same period ending

December 31
, 2024, expenditures totaled
$11,00

0,
or 36.5% of the

FY
2024

-
25 expenditure budget. Expenditures increased due to Utilities, as Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
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 -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 61,061$ 28,027$ 45.9% 62,578$ 27,934$ 44.6% 50,088$ 12,490$ 80.0% Materials, Supplies & Maintenance 4,000$ 750$ 18.8% 7,760$ -$ 0.0% 750$ 7,010$ 9.7% Total Expenses 65,061$ 28,777$ 44.2% 70,338$ 27,934$ 39.7% 50,838$ 19,500$ 72.3% Revenues Less Expenditures (24,611)$ (6,810)$

(70,338)$ (27,934)$ (50,838)$ 19,500$ Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
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 -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Professional/Contract Services 28,564$ 10,310$ 36.1% 29,705$ 11,234$ 37.8% 26,000$ 3,705$ 87.5% Utilities 500$ 307$ 61.4% 4,000$ 3,281$ 82.0% 6,000$ (2,000)$ 150.0% Total Expenses 29,064$ 10,617$ 36.5% 33,705$ 14,515$ 43.1% 32,000$ 1,705$ 94.9% Revenues Less Expenditures 11,000$ 8,545$ 7,500$ (14,515)$ 9,205$ 1,705$ Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
58 51

the water charges started to normalize, after the irrigation system repair was completed last year.

Overall,

the fund is projected to generate a surplus of $9,000 by year

-
end.

CDD Operating Budget Summary (Section 8 Housing Fund)

As of

December 31
, 2025, a total of

4.8 million, or 49.3

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City realized

4.3 million in
revenues, representing 48

.1%
of the

FY 2024

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

fall short of

budget by approximately

$
99,000

, primarily due to
a projected slowdown in
Housing Assistant Program (HAP) reimbursements,

as the program is expected to reach the limit
required to maintain the

funding reserve level.

On the expenditure side, the department expended

$4
.7 million or 48.6% of its

FY 2025

-
26 budget, as
of December 31, 2025.

During the same period ending December 31, 2024, expenditures totaled $4.3
million, or 49.2% of the

FY 2024

-
25 expenditure budget. Expenditures increased primarily in Materials, Supplies and Maintenance classification, as the volume of rental assistant payments increased compared to the

prior year to date
. Overall, the fund is

expected
to generate a year-end
surplus of

$
81 ,
000.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 5,500$ 13,632$ 247.9% 25,009$ 12,377$ 49.5% 25,750$ 741$ 103.0% Intergovernmental 8,928,000$ 4,282,576$ 48.0% 9,644,000$ 4,757,396$ 49.3% 9,544,000$ (100,000)$ 99.0% Other Revenues 16,000$

9,914$ 62.0% 16,300$

5,102$ 31.3% 16,300$

-$ 100.0%
Total Revenues 8,949,500$ 4,306,122$

48.1% 9,685,309$

4,774,875$

49.3% 9,586,050$

(99,259)$ 99.0%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 648,922$ 347,536$ 53.6% 707,169$ 368,505$ 52.1% 672,974$ 34,195$ 95.2% Materials, Supplies & Maintenance 7,931,986$ 3,884,606$ 49.0% 8,636,821$ 4,185,477$ 48.5% 8,616,148$ 20,673$

99.8%
Professional/Contract Services 79,590$

28,836$

36.2% 75,815$

28,585$

37.7% 39,217$

36,598$

51.7%
Training, Travel & Membership Dues 5,132$ 239$ 4.7% 4,982$ 617$ 12.4% 2,200$ 2,782$ 44.2% Interdepartmental Charges 160,049$ 83,459$

52.1% 166,014$ 81,904$

49.3% 174,900$ (8,886)$ 105.4%
Total Expenses 8,825,679$

4,344,676$

49.2% 9,590,801$

4,665,088$

48.6% 9,505,439$

85,362$ 99.1%
Revenues Less Expenditures 123,821$

(38,554)$ 94,508$ 109,787$

80,611$ (13,897)$
Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
59 52

CDD Operating Budget Summary (Redevelopment Agency Fund)

As of

December 31
, 2025, a total of

$
2,000 of FY 2025

-
26 budgeted revenues have been collected.

During the same period ending December 31, 2024, the City realized $5,000 in revenues. The fund is expected to fully

realize
the revenue operating budget.

On the expenditure side, the department expended

$
70,000 or 5.6% of its

FY 2025

-
26 budget, as of
December 31 , 2025.

During the same period ending

December 31
, 2024, expenditures totaled
$115,000

,
or 8.2% of the FY 2024

-
25 expenditure budget. The expenditure

decreased primarily due to
higher reimbursement

for
the bond principals recognized in the FY 2025-26

The fund is expected to
fully utilize

the expenditure operating budget, with only a marginal surplus.

CDD Operating Budget Summary (Vanpool Fund)

As of

December 31
, 2025, a total of

$
95,000

,
or 36.3% of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City realized

$
129,000

in revenues,
Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
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$ 4,613$ 54.3% 5,040$ 1,540$ 30.6% 5,060$ 20$ 100.4% Other Financing Sources 189,768$ -$ 0.0% 189,768$ -$ 0.0% 189,768$ -$ 100.0% Total Revenues 3,988,268$

4,613$ 0.1% 4,339,486$

1,540$ 0.0% 4,339,506$

20$ 100.0%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
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$ 1,617,926$ 56.2% 2,817,179$ 1,647,000$ 58.5% 2,811,979$ 5,200$ 99.8% 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$

115,426$ 8.2% 1,252,179$

69,500$ 5.6% 1,246,979$

5,200$ 99.6%
Revenues Less Expenditures 2,586,315$

(110,813)$ 3,087,307$

(67,960)$ 3,092,527$

5,220$
Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Use of Money and Property 965$ (123)$ -12.7% (157)$ (56)$ 35.7% (250)$ (93)$ 159.2% Intergovernmental 35,000$

24,759$

70.7% 50,000$

-$ 0.0% 50,000$

-$ 100.0%
Charges for Services 30,000$

14,391$

48.0% 32,000$

15,697$

49.1% 37,360$

5,360$ 116.8%
Operating Transfers In 179,906$ 89,976$

50.0% 179,906$ 79,244$

44.0% 102,914$ (76,992)$ 57.2%
Total Revenues 245,871$

129,003$

52.5% 261,749$

94,885$ 36.3% 190,024$

(71,725)$ 72.6%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 111,092$ 61,984$ 55.8% 123,367$ 70,368$ 57.0% 113,167$ 10,200$ 91.7% Materials, Supplies & Maintenance 132,930$ 66,362$

49.9% 136,587$ 23,885$

17.5% 75,599$

60,988$

55.3%
Professional/Contract Services 1,323$ 510$ 38.5% 1,284$ 630$ 49.1% 1,104$ 180$ 86.0% Training, Travel & Membership Dues 526$ 161$ 30.6% 511$ -$ 0.0% 154$ 357$ 30.1% Total Expenses 245,871$

129,017$

52.5% 261,749$

94,883$ 36.2% 190,024$

71,725$ 72.6%
Revenues Less Expenditures -$ (14)$ -$ 2$ (0)$ (0)$ Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
60 53

representing 52.5 % of the FY 2024 - 25 revenue budget. The decrease in Intergovernmental revenues is primarily attributable to

zero grant dollars being received to
date. Additionally, there was a decline
in Operating Transfers In primarily attributable to lower Materials, Supplies & Maintenance classification, since

the
Transfers

I
n from Proposition

C is used as

the fund’s balancing

measure
and
to support expenditures not covered by the other sources of revenues. Overall, year-end revenues are projected to

fall short of

budget by approximately

$
72 ,000
.

On the expenditure side, the department expended

$
95,000 or 36.2

%
of its FY 2025

-
26 budget, as of
December 31 , 2025.

During the same period ending
December 31 , 2024, expenditure

totaled
$129,000

,
or 52.5

%
of the

FY 2024

-
25 expenditure budget. The expenditure

decreased mostly in the
Materials, Supplies & Maintenance classification due to lower

ridership
in the current fiscal year. The
fund is projected to end

the year with
a $7 2,000 surplus primarily

due to

a service interruption
associated with a contracted vendor for the vanpool service. The department is currently procuring replacement services, and expenditures are expected to normalize once a new vendor is in place.

61 54

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
Mid-Year
Proposed
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 7.00

7.00 -

-$
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 2.00

2.00 -

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 - -$
62 55

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

63 56

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

As of

December 31
, 2025, a total of

3.9 million, or 58.3

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City

also
realized $3.9 million in
revenues, representing

63.8 %
of the

FY 2024

-
25 revenue budget. The increase in

Charges for Services
is driven by higher revenues in recreation services, farmers’ market activity, and contract class fees.

The Licenses, Fees, and Permits classification is projected to

exceed budget by

$
141,000, as activity
for animal licenses and permits is anticipated to be more closely

aligned
with last

year’s levels
.

Overall, year-end revenues are

projected

to exceed

budget by approximately
$24

,000
.

On the expenditure side, the

department expended
$13.1 million or 46.4

%
of its FY 2025

-
26 budget,
as of

December 31
, 2025.

During the same period ending

December 31
, 2024,

expenditures totaled

$11

.9
million, or 44.8

%
of the

FY 2024

-
25 expenditure budget. The increase in Salaries and Employee Benefits by $ 931,000 is primarily due to

approved pay
increase and benefit adjustments. The
projected surplus in Salaries and Employee Benefits of $ 625

,000 is
due to

15 .0 FTE vacancies ,
specifically in Library Services and Parks Services.

The $290,000

projected surplus in Materials, Supplies & Maintenance is attributable to lower expenditures in Parks Services and Library Services . The $300,000 projected surplus in Professional Contract Services is primarily due to contract savings in Parks Services.

Department expenditure

s
is
projected

to end the year

with a

$
998,000 surplus.

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Licenses, Fees and Permits 215,000$ 74,870$ 34.8% 120,000$ 60,514$ 50.4% 261,390$ 141,390$ 217.8% Use of Money and Property 623,765$

327,376$ 52.5% 671,400$

277,594$ 41.3% 595,570$

(75,830)$ 88.7%
Charges for Services 5,207,992$

3,427,130$ 65.8% 5,838,740$

3,523,413$ 60.3% 5,765,160$

(73,580)$ 98.7%
Other Revenues -$ 25,664$

0.0% -$ 5,151$ 0.0% 32,300$ 32,300$

0.0%
Total Revenues 6,046,757$ 3,855,040$

63.8% 6,630,140$ 3,866,672$ 58.3% 6,654,420$ 24,280$ 100.4% Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 17,219,354$ 8,131,913$ 47.2% 18,526,530$ 9,063,040$ 48.9% 17,902,008$ 624,522$ 96.6% Salaries and Benefits Reimbursements -$ (500)$

0.0% -$ -$ 0.0% -$ -$ 0.0% Materials, Supplies & Maintenance 4,140,775$

1,390,975$ 33.6% 3,089,943$

1,102,254$ 35.7% 2,800,047$

289,896$ 90.6%
Materials Reimbursements (138,334)$ (43,834)$ 31.7% (138,334)$ (29,876)$ 21.6% (115,000)$ (23,334)$ 83.1% Professional/Contract Services 1,925,180$

631,284$ 32.8% 2,240,012$

755,071$ 33.7% 1,939,892$

300,120$ 86.6%
Training, Travel & Membership Dues 94,459$ 24,328$

25.8% 91,721$ 21,753$

23.7% 66,539$ 25,182$

72.5%
Liabilities, Settlements & Insurance 28,500$ 14,293$

50.2% -$ -$ 0.0% -$ -$ 0.0% Utilities 1,792,121$

1,007,532$ 56.2% 2,069,700$

1,061,660$ 51.3% 2,350,600$

(280,900)$ 113.6%
Interdepartmental Charges 1,442,041$

737,933$ 51.2% 2,185,032$

1,092,507$ 50.0% 2,185,032$

-$ 100.0%
Capital Acquisitions 73,500$ 688$ 0.9% 72,750$ -$ 0.0% 10,000$ 62,750$

13.7%
Total Expenses 26,577,596$

11,894,612$ 44.8% 28,137,354$

13,066,409$ 46.4% 27,139,118$

998,236$

96.5%
Revenues Less Expenditures (20,530,839)$ (8,039,572)$ (21,507,214)$ (9,199,737)$ (20,484,698)$ 1,022,516$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
64 57

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

As of

December 31
, 2025, the department expended $46,000 or 23.2% of its FY 2025

-
26 budget. During
the same period ending December 31, 2024, there w ere no expenditures. This expenditure is for security guard contract services to prevent overnight encampment at parks, which

the
City started
to utilize the Measure SST Fund

in
September 2025.

It is projected to generate a surplus of $
15,000 at
year-end.

Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Professional/Contract Services -$ -$ 0.0% 200,000$ 46,463$ 23.2% 185,000$ 15,000$ 92.5% Total Expenses -$ -$ 0.0% 200,000$

46,463$ 23.2% 185,000$

15,000$ 92.5%
Prior Year FY 2024-25 Current Year FY 2025-26
65 58

Community Services Staffing Budget Summary (General Fund)

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 2.00

2.00 - -$
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 1.53

1.53 - -$
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 3.00

3.00 -

-$
Program Leader 26.94 26.94 27.92 27.92 -

Program Specialist 20.77 20.77 22.22 22.22 -

-$
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 5.00

5.00 - -$

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 13.71 13.71 - -$

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

-$
66 59

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

67 60

Finance Operating Budget Summary (General Fund-Operating Fund)

As of

December 31
, 2025, the Finance Department expended $2.9 million, representing 46.6% of its FY 2025

-
26 budget. During the same period ending

December 31
, 2024, expenditures totaled

$2
.7
million, or

43.5 % of the

FY 2024

-
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 Professional/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 Departm ent. 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

$
61,000 in expenditure savings ,
primarily attributable to surpluses in the Professional/Contract services classification partially offset by the department being staffed at levels exceeding the assumed vacancy factor in the adopted budget.

Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 4,550,193$ 2,176,611$ 47.8% 5,206,311$ 2,622,346$ 50.4% 5,304,846$ (98,535)$ 101.9% Salaries and Benefits Reimbursements (19,000)$ (9,500)$ 50.0% (19,000)$ (9,500)$ 50.0% (19,000)$ -$ 100.0% Materials, Supplies & Maintenance 80,512$

31,513$

39.1% 77,701$

20,534$

26.4% 66,747$

10,954$

85.9%
Materials Reimbursements -$ (21)$ 0.0% -$ (246)$

0.0% (255)$

255$ 0.0%
Professional/Contract Services 1,412,177$ 406,803$ 28.8% 774,365$ 199,211$ 25.7% 647,977$ 126,388$ 83.7% Training, Travel & Membership Dues 42,608$

26,365$

61.9% 58,207$

5,907$ 10.1% 45,996$

12,211$

79.0%
Utilities 2,088$ 509$ 24.4% -$ -$ 0.0% -$ -$ 0.0% Interdepartmental Charges 179,510$ 89,754$

50.0% 193,192$ 96,594$

50.0% 193,192$ -$ 100.0% Capital Acquisitions 15,000$

1,323$ 8.8% 15,000$

857$ 5.7% 5,000$ 10,000$

33.3%
Total Expenses 6,263,088$

2,723,357$

43.5% 6,305,776$

2,935,703$

46.6% 6,244,503$

61,273$ 99.0%
Prior Year FY2024-25 Current Year FY2025-26
68 61

Finance Operating Budget Summary (Self-Insurance Fund)

As of

December 31
, 2025, the City has received $12

.1
million, or 50.2% of the

FY 2025

-
26 budgeted
revenues, compared to

11.8 million, or 50.0%, during the same period ending December 31, 2024.

The increase in Charges for Services is due to higher

l
iability 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
$36,000

On the expenditure side, the Self-Insurance Fund recorded expenditures of

12.7 million, or 52.4

% of
the FY 2025

-
26 budget, as of

December 31
, 2025. During the same period ending

December 31
, 2024,
expenditures totaled $10.2 million, or 43.3

%
of the FY 2024

-
25 budget. The increase in

the
Liabilities,
Settlements & Insurance classification is attributable to higher insurance premium costs , external attorney fees and litigation related costs.

A y
ear-end expenditure

deficit
of approximately $1.4
million is projected, driven primarily by workers’ compensation claims and settlement related costs.

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

an operating
deficit of
approximately

1.4 million.

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Charges for Services 23,659,000$ 11,819,450$ 50.0% 24,178,667$ 12,075,636$ 49.9% 24,156,750$ (21,917)$ 99.9% Other Revenues -$ 13,622$

0.0% -$ 58,388$

0.0% 58,200$

58,200$

0.0%
Total Revenues 23,659,000$ 11,833,072$ 50.0% 24,178,667$ 12,134,024$ 50.2% 24,214,950$ 36,283$ 100.2% Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/(Defic
i
t)
Projected
% of
B
udget
Salaries and Employee Benefits 1,083,179$ 454,286$ 41.9% 1,104,986$ 566,516$ 51.3% 1,065,820$ 39,166$ 96.5% Materials, Supplies & Maintenance 24,000$

2,434$ 10.1% 22,050$

1,713$ 7.8% 7,500$ 14,550$

34.0%
Professional/Contract Services 505,000$ 246,503$ 48.8% 682,950$ 331,911$ 48.6% 737,700$ (54,750)$ 108.0% Training, Travel & Membership Dues 11,600$

2,496$ 21.5% 16,000$

3,525$ 22.0% 9,100$ 6,900$ 56.9% Liabilities, Settlements & Insurance 18,654,469$ 9,354,785$ 50.1% 19,168,224$ 11,700,220$

61.0% 20,572,942$

(1,404,718)$

107.3%
Utilities 750$ 236$ 31.5% -$ -$ 0.0% -$ -$ 0.0% Interdepartmental Charges 235,890$ 114,459$ 48.5% 305,658$ 135,895$ 44.5% 264,700$ 40,958$

86.6%
Capital Acquisitions -$ -$ 0.0% 1,950$ 1,856$ 95.2% 1,900$ 50$

97.4%
Bad Debts and Other Losses 3,000,000$ -$ 0.0% 3,000,000$ -$ 0.0% 3,000,000$ -$ 100.0% Total Expenses 23,514,888$ 10,175,199$ 43.3% 24,301,818$ 12,741,636$ 52.4% 25,659,662$ (1,357,844)$ 105.6% Revenues Less Expenditures 144,112$

1,657,873$

(123,151)$ (607,612)$ (1,444,712)$ (1,321,561)$ Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
69 62

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

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 2.00

2.00 -

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 0.75

0.75 - -$

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 38.75

38.75 - -$
70 63

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

71 64

Fire Operating Budget Summary (General Fund - Operating Fund)

As of

December 31
, 2025, a total of

6.8 million, or 48.0

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City realized

6.3 million in
revenues, representing

46.4 %
of the

FY 2024

-
25 revenue budget. The increase in Charges for Services is primarily driven by

higher
emergency transport fees. Overall, year-end revenues are projected to finish slightly

under

budget by approximately

$52
,000

On the expenditure side, the

department expended
$35.4

million or 50.2

%
of its FY 2025

-
26 budget,
as of

December 31
, 2025.

During the same period ending

December 31
, 2024,

expenditures totaled

$34.0 million, or 49.0

%
of the

FY 2024

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

Salaries and
Employee Benefits are projected to end the year with a $827,000

deficit, driven primarily by overages
in overtime resulting from

18.5 vacancies and the requirement to meet constant staffing rules . The projected deficit is partially offset by

minor
savings in the

Materials, Supplies & Maintenance and
Professional/Contract Services classifications.

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

$
693,000

in expenditure deficit, driven
primarily

by overtime
needed

maintain

constant staffing

requirements
.

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July - December
Actuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Licenses, Fees and Permits 210,000$ 132,301$ 63.0% 250,000$ 176,704$ 70.7% 250,000$ -$ 100.0% Charges for Services 11,139,044$ 5,042,522$

45.3% 11,620,500$ 5,486,925$ 47.2% 11,595,760$ (24,740)$ 99.8% Other Revenues 20,000$ 20,000$ 100.0% 27,000$ -$ 0.0% -$ (27,000)$ 0.0% Operating Transfers In 2,121,088$ 1,069,028$

50.4% 2,214,815$

1,107,408$ 50.0% 2,214,813$

(2)$

100.0%
Total Revenues 13,490,132$ 6,263,851$ 46.4% 14,112,315$

6,771,037$

48.0% 14,060,573$

(51,742)$ 99.6%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 58,666,588$ 29,524,046$ 50.3% 61,261,397$ 31,478,831$ 51.4% 62,088,724$ (827,327)$ 101.4% Salaries and Benefits Reimbursements (1,580,000)$ (1,083,221)$ 68.6% (1,000,000)$ (492,550)$

49.3% (1,000,000)$ -$

100.0%
Materials, Supplies & Maintenance 2,934,631$ 1,279,186$

43.6% 1,281,780$

402,048$ 31.4% 1,205,632$

76,148$

94.1%
Materials Reimbursements (175,000)$ (130,322)$ 74.5% (75,000)$ (53,653)$ 71.5% (61,000)$ (14,000)$ 81.3% Professional/Contract Services 1,381,545$ 560,439$

40.6% 1,774,516$

549,313$ 31.0% 1,728,195$

46,321$

97.4%
Training, Travel & Membership Dues 172,200$ 82,138$ 47.7% 194,041$

78,111$

40.3% 187,766$

6,275$ 96.8%
Liabilities, Settlements & Insurance 10,000$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Utilities 252,470$ 107,533$

42.6% 188,800$

87,934$

46.6% 185,500$

3,300$ 98.3%
Interdepartmental Charges 7,146,908$ 3,596,311$

50.3% 6,482,490$

3,241,244$ 50.0% 6,482,490$

-$ 100.0%
Debt Service 242,703$ -$ 0.0% 242,703$

-$ 0.0% 242,703$

-$ 100.0%
Capital Acquisitions 263,000$ 53,089$ 20.2% 239,500$

117,066$ 48.9% 223,000$

16,500$

93.1%
Total Expenses 69,315,045$ 33,989,199$

49.0% 70,590,227$

35,408,344$ 50.2% 71,283,010$

(692,783)$ 101.0%
Revenues Less Expenditures (55,824,913)$ (27,725,348)$ (56,477,912)$ (28,637,307)$

(57,222,437)$ (744,525)$
Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
72 65

Fire Staffing Budget Summary (General Fund)

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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

203.00

203.00 - -$
73 66

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

74 67

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

As of

December 31
, 2025, a total of

$
414,000

,
or 40.8

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City realized

$
492,000 in revenues,
representing 43.3

%
of the FY 2024

-
25 revenue budget . The decrease in Charges for Services

is
primarily driven by

reduced
rental activity for meeting rooms and theaters at the Cultural Arts Center.

Overall, year-end revenues are projected to

finish

under

budget by approximately

$
160,000.

On the expenditure side, the department spent $6.3 million or 48.3

%
of its FY 2025

-
26 budget, as of
December 31, 2025.

During the same period ending

December 31
, 2024,

expenditures totaled
$5.8
million, or 48.7% of the

FY 2024

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

s
remains

consistent year

-
to-date with the

prior year

-
to-date percentages.

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

$
699,000

in expenditure savings .

These savings are primarily attributable to Salaries and Employee Benefits due to 9.0 FTE vacancies, savings in the Materials, Supplies & Maintenance

classification related to building maintenance
services, and savings within the Professional Services, Utilities and Capital Acquisitions classifications.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Charges for Services 1,136,049$ 491,702$ 43.3% 1,016,700$ 414,429$ 40.8% 856,730$ (159,970)$ 84.3% Total Revenues 1,136,049$ 491,702$

43.3% 1,016,700$ 414,429$

40.8% 856,730$ (159,970)$ 84.3%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 7,299,570$ 3,511,679$ 48.1% 7,986,709$ 3,888,404$ 48.7% 7,595,509$ 391,200$ 95.1% Salaries and Benefits Reimbursements (70,000)$ (8,857)$ 12.7% (70,000)$ (30,235)$ 43.2% (62,000)$ (8,000)$ 88.6% Materials, Supplies & Maintenance 1,966,166$

1,039,544$ 52.9% 2,538,861$

1,291,527$ 50.9% 2,456,031$

82,830$

96.7%
Materials Reimbursements (90,000)$ (75,503)$ 83.9% (180,000)$ (83,552)$ 46.4% (162,450)$ (17,550)$ 90.3% Professional/Contract Services 958,138$

414,754$ 43.3% 810,261$

291,102$ 35.9% 681,113$

129,148$ 84.1%
Training, Travel & Membership Dues 17,080$ 10,485$

61.4% 25,784$ 6,587$ 25.5% 16,605$ 9,179$ 64.4% Utilities 977,377$

461,677$ 47.2% 1,008,783$

446,722$ 44.3% 941,550$

67,233$

93.3%
Interdepartmental Charges 868,188$

443,874$ 51.1% 773,784$

386,887$ 50.0% 773,784$

-$ 100.0%
Capital Acquisitions 73,634$ 52,258$

71.0% 150,000$

100,000$ 66.7% 105,000$

45,000$

70.0%
Total Expenses 12,000,153$

5,849,911$

48.7% 13,044,182$ 6,297,442$

48.3% 12,345,142$

699,040$

94.6%
Revenues Less Expenditures (10,864,104)$ (5,358,209)$ (12,027,482)$ (5,883,013)$ (11,488,412)$ 539,070$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
75 68

General Services Operating Budget Summary (Airport Fund)

As of

December 31
, 2025, the Airport Fund realized $11.5 million in revenues, representing 52.3% of the

FY 2025

-
26 revenue budget.

During the same period ending

December 31
, 2024

, the City realized
$11.3

million or 61.6% of the FY 2024

-
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

5.0 million, driven by

increases
in the
Use of Money and Property

classification, including rent increases, one-time land lease

signing fees

for

contract extensions
, and higher

investment earnings.

On the expenditure side, the

Airport
Fund realized expenditures of

18.6 million or 65.3

%
of the

FY
2025

-
26 budget as of

December 31
, 2025

During the same period ending December 31, 2024

, the City
expended $10.3 million or 57.2

%
of the FY 2024

-
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 $5.7 million. This fund’s budget was originally adopted with a planned use of fund balance of $3.0 million. On December 16, 2025, Council approved an appropriation of $2.8 million from the Airport

Fund Balance
to the Airport Capital Fund
for

the

Airport
Taxiway Lighting Replacement project.

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Use of Money and Property 17,372,473$ 8,813,952$ 50.7% 19,820,464$ 10,291,374$ 51.9% 24,501,940$ 4,681,476$ 123.6% Charges for Services 469,853$ 253,942$ 54.0% 500,260$ 211,391$ 42.3% 422,410$ (77,850)$ 84.4% Other Revenues 500,000$ 2,224,012$ 444.8% 1,600,000$ 957,905$ 59.9% 2,000,000$ 400,000$ 125.0% Total Revenues 18,342,326$ 11,291,906$ 61.6% 21,920,724$ 11,460,670$ 52.3% 26,924,350$ 5,003,626$

122.8%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 1,556,604$ 688,098$ 44.2% 1,622,106$ 849,198$ 52.4% 1,677,529$ (55,423)$ 103.4% Materials, Supplies & Maintenance 144,887$ 32,924$

22.7% 111,167$ 11,345$

10.2% 84,227$

26,940$

75.8%
Professional/Contract Services 2,543,300$ 324,054$ 12.7% 6,643,083$ 2,420,961$ 36.4% 6,570,796$ 72,287$

98.9%
Training, Travel & Membership Dues 11,923$

8,323$ 69.8% 11,551$

692$ 6.0% 6,806$ 4,745$ 58.9% Depreciation and Amortization 260,582$ 135,255$ 51.9% 275,000$ 135,171$ 49.2% 275,000$ -$ 100.0% Utilities 220,946$ 112,849$ 51.1% 268,400$ 108,895$ 40.6% 263,300$ 5,100$ 98.1% Interdepartmental Charges 624,115$ 289,479$ 46.4% 682,712$ 330,230$ 48.4% 662,915$ 19,797$

97.1%
Bad Debts and Other Losses 15,000$

-$ 0.0% 25,000$

-$ 0.0% 15,000$

10,000$

60.0%
Other Operating Transfers Out 12,580,785$

8,673,533$ 68.9% 18,892,616$

14,773,180$

78.2% 23,030,546$ (4,137,930)$

121.9%
Total Expenses 17,958,142$ 10,264,515$ 57.2% 28,531,635$ 18,629,672$ 65.3% 32,586,119$ (4,054,484)$ 114.2% Revenues Less Expenditures 384,184$

1,027,391$

(6,610,911)$ (7,169,002)$ (5,661,769)$ 949,142$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
76 69

General Services Operating Budget Summary (Fleet Services Fund)

As of

December 31
, 2025, the Fleet Services Fund

realized
$6.8 million in revenues , representing

45.4 %
of the

FY 2025

-
26 revenue budget. For the same period ending December 31 , 2024

, the City
realized $6.5 million in revenues,

48.5 %
of the

FY 2024

-
25 revenue budget. The decrease in the
Use of Money and Property

classification is primarily due to a reclassification of investment earnings, which are now recognized in the General Fund rather than the Fleet Fund,

beginning in
FY 2025

26. Fleet Fund revenues are projected to end the fiscal year

with
a deficit of

approximately $1.6 million,
driven by

lower fleet replacement contributions from

city
departments.

On the expenditure side, the

Fleet Services Operating Fund

recorded
$6.8 million in expenditures, or

48.5 %
of the

FY 2025

-
26 expenditure budget, as of

December 31
, 2025. During the same period ending
December 31, 2024

, the City expended
$4.4 million or 49.8

%
of the

FY 2024

-
25 expenditure budget.

The $1.3 million increase in

Material, Supplies & Maintenance
reflects the centralized budgeting of
vehicle maintenance costs in Fleet

Services
Fund beginning in FY 2025

-
26, combined with rising costs
for vehicle parts.

The Depreciation
and Amortization classification also showed increase

d
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

modest
surplus of

$
99 ,000
, primarily due to
vacancy savings, as a result of 4.0

FTE vacancies.

Overall, the Fleet Fund is projected to operate at a

deficit

$
498,000

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Use of Money and Property 6,362,859$ 3,371,200$ 53.0% 5,782,968$ 1,842,564$ 31.9% 3,685,130$ (2,097,838)$ 63.7% Charges for Services 6,896,676$ 2,971,037$ 43.1% 9,216,994$ 4,761,849$ 51.7% 9,523,700$ 306,706$ 103.3% Other Revenues 80,464$

123,958$ 154.1% 75,000$

245,328$ 327.1% 248,950$ 173,950$ 331.9% Total Revenues 13,339,999$ 6,466,195$

48.5% 15,074,962$ 6,849,741$

45.4% 13,457,780$ (1,617,182)$ 89.3%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 3,984,551$ 1,896,286$ 47.6% 4,263,861$ 1,924,938$ 45.1% 3,991,170$ 272,691$ 93.6% Materials, Supplies & Maintenance 777,487$ 328,622$ 42.3% 2,898,477$ 1,621,908$ 56.0% 3,471,263$ (572,786)$ 119.8% Materials Reimbursements (500,000)$ (203,852)$ 40.8% -$ -$ 0.0% -$ -$ 0.0% Parts, Fuel & Lubricants Inventory Purch 3,213,628$ 1, 446,958$ 45.0% 3,643,628$ 1,474,571$ 40.5% 3,643,000$ 628$ 100.0% Parts, Fuel & Lubricants Contra (3,210,628)$ (1,446,958)$

45.1% (3,643,628)$ (1,474,571)$ 40.5% (3,643,000)$

(628)$

100.0%
Professional/Contract Services 205,334$ 170,466$ 83.0% 41,291$

9,394$ 22.8% 40,100$

1,191$ 97.1%
Training, Travel & Membership Dues 54,075$

3,272$ 6.1% 29,585$

357$ 1.2% 8,985$ 20,600$

30.4%
Depreciation and Amortization 1,712,016$ 774,836$ 45.3% 3,750,000$ 1,762,738$ 47.0% 3,525,000$ 225,000$ 94.0% Liabilities, Settlements & Insurance 16,880$

-$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Utilities 2,600$ 184$ 7.1% 600$ -$ 0.0% 600$ -$ 100.0% Interdepartmental Charges 2,237,427$ 1,102,244$ 49.3% 2,292,195$ 1,079,791$ 47.1% 2,160,121$ 132,074$ 94.2% Debt Service -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Capital Acquisitions 26,642,457$ 5,701,854$ 21.4% 14,542,108$

3,647,646$ 25.1% 12,680,820$ 1,861,288$ 87.2% Asset Contra Account (26,548,410)$ (5,669,362)$

21.4% (14,492,108)$ (3,634,570)$

25.1% (12,650,820)$ (1,841,288)$

87.3%
Other Operating Transfers Out 353,263$ 344,032$ 97.4% 728,478$ 406,738$ 55.8% 728,478$ -$ 100.0% Total Expenses 8,940,680$

4,448,582$

49.8% 14,054,487$ 6,818,940$

48.5% 13,955,717$ 98,770$ 99.3%
Revenues Less Expenditures 4,399,319$

2,017,613$ 1,020,475$

30,801$ (497,937)$ (1,518,412)$
Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
77 70

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

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 2.00

1.00 140,547$
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 1.00 1.00 - -$ 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 2.00

2.00 - -$
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 2.00 2.00

- -$
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 3.00 3.00

- -$
Staff Assistant 2.00

2.00 2.00 1.00

(1.00) (108,593)$
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

117.75 116.25 116.25 - 31,954$ 78 71

Program Modification
Administrative Services Division Staffing Adjustment
Delete 1

.0 FTE Staff Assistant and Add 1.0 FTE Administrative Analyst

Expenditure:

$
31,954 (General Fund)

The General Services Department is requesting

the conversion of 1.0 FTE Staff Assistant to 1.0 FTE
Administrative Analyst . The Administrative Services Division supports an increasingly complex portfolio of capital projects, requiring analytical, financial and programmatic support beyond the scope of the Staff Assistant classification. Capital project support now requires

data analysis, budget
evaluation, forecasting, reporting and cross -departmental coordination, which

are
consistent with
the Administrative Analyst

classification
.

79 72

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

80 73

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

As of December 31, 2025, the Human Resources Department expended $1.6 million or 48.3

%
of its FY
2025

-
26 budget.

For
the same period ending

December 31
, 2024, expenditures totaled

1.4 million

,
or 42.8

%
of the

FY 2024

-
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 . The $64,000 surplus in the Materials, Supplies & Maintenance classification is due to lower than anticipated expenditures for employee events.

Overall, the department is projected to end the

fiscal year with a surplus of $70
,000, driven by

savings

the Materials, Supplies & Maintenance classification
.

Human Resources Staffing Budget Summary (General Fund)

24.4% 332,073$ 106,555$ 32.1% 267,895$ 64,178$

80.7%
Professional/Contract Services 786,099$ 280,265$ 35.7% 462,659$ 203,638$ 44.0% 457,600$ 5,059$ 98.9% Training, Travel & Membership Dues 66,780$

23,977$

35.9% 69,840$

22,425$

32.1% 64,250$

5,590$ 92.0%
Utilities 3,780$ 833$ 22.0% -$ -$ 0.0% -$ -$ 0.0% Interdepartmental Charges 78,403$

39,204$

50.0% 165,675$ 82,842$

50.0% 165,675$ -$ 100.0% Total Expenses 3,244,183$

1,387,514$

42.8% 3,351,014$

1,618,001$

48.3% 3,281,134$

69,880$ 97.9%
Prior Year FY2024-25 Current Year FY2025-26
Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 - -$
81 74

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

82 75

IT Operating Budget Summary (General Fund - Operating Fund)

As of

December 31
, 2025, the

Information Technology Department

realized
$103,000 in revenues,
representing 50.0

%
of the

FY 2025

-
26 revenue budget. For the same period ending December 31 , 2024, the City realized

$
101

,000
, or 50.4

%
of the FY 2024

-
25 revenue budget. The Operating Transfers
In classification is driven by transfers from the Measure SST Fund to support the position dedicated to

cybersecurity efforts
and

projected to

finish the year at budget.

On the expenditure side, the department expended

5.5 million or 38.0% of its

FY 2025

-
26 budget, as
of December 31, 2025.

During the same period ending December 31, 2024, expenditures totaled $4.3
million, or 45.7

%
of the

FY 2024

-
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 show an increase in expenditures to date compared to prior year, primarily due to

the
consolidation of embedded IT positions

from
other
departments in FY 2025

-
26 .

The surplus projection in Salaries and Employee Benefits reflects savings from 10.0 FTE vacancies as of

December 31
, 2025

Overall, the

expenditure

budget is projected to
generate surplus of

$1.
3 million, driven primarily by vacant positions.

IT Operating Budget Summary (General Fund – Measure SST Fund)

As of

December 31
, 2025, the Information Technology Department expended $109,000

, representing

13.4% of the FY 2025

-
26 expenditure

budget. For the same period ending December 31 , 2024,
expenditures totaled $ 92,000

,
or 11.1% of the

FY
2024

-
25 expenditure budget. At year -end, it is
projected to expend all budgeted expenditures except for a modest saving s of $8,200,

as the
Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Operating Transfers In 200,415$ 101,009$ 50.4% 205,520$ 102,760$ 50.0% 205,520$ -$ 100.0% Total Revenues 200,415$

101,009$

50.4% 205,520$ 102,760$

50.0% 205,520$ -$ 100.0%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 6,046,087$ 2,770,001$ 45.8% 7,353,221$ 3,031,175$ 41.2% 6,484,035$ 869,186$ 88.2% Materials, Supplies & Maintenance 415,416$ 75,616$

18.2% 351,978$

64,352$

18.3% 272,273$

79,705$

77.4%
Professional/Contract Services 2,379,885$ 1,198,134$ 50.3% 5,880,824$

1,989,861$ 33.8% 5,542,504$

338,320$ 94.2%
Training, Travel & Membership Dues 52,500$

12,782$

24.3% 60,626$ 23,742$

39.2% 48,750$ 11,876$

80.4%
Utilities 267,818$ 132,164$ 49.3% 607,463$

291,057$ 47.9% 600,944$

6,519$ 98.9%
Interdepartmental Charges 198,229$ 96,339$

48.6% 223,796$

111,895$ 50.0% 223,796$

-$ 100.0%
Capital Acquisitions 40,976$

8,870$ 21.6% 11,550$ -$ 0.0% 8,000$ 3,550$ 69.3% Total Expenses 9,400,911$

4,293,906$ 45.7% 14,489,458$

5,512,082$

38.0% 13,180,302$ 1,309,156$

91.0%
Revenues Less Expenditures (9,200,496)$ (4,192,897)$ (14,283,938)$ (5,409,322)$ (12,974,782)$ 1,309,156$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Professional/Contract Services 825,000$ 91,711$ 11.1% 814,800$ 108,886$ 13.4% 806,600$ 8,200$ 99.0% Total Expenses 825,000$

91,711$ 11.1% 814,800$

108,886$

13.4% 806,600$

8,200$ 99.0%
Prior Year FY 2024-25 Current Year FY 2025-26
83 76

department continues to increase the activit ies in supporting the IT needs for the public safety as well as information security effort.

IT Staffing Budget Summary (General Fund)

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 - -$
84 77

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

85 78

Police Operating Budget Summary (General Fund - Operating Fund)

As of

December 31
, 2025, a total of

5.7 million, or 49.2

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City realized

5.2 million in
revenues, representing 49.7

%
of the

FY 2024

-
25 revenue budget. The increase in Operating Transfers
In 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

$
64,000.

On the expenditure side, the department expended $55.2

million or 50.2

%
of its

FY 2025

-
26 budget,
as of

December 31
, 2025.

During the same period ending

December 31
, 2024, expenditures totaled
$50.5 million, or 49.6

%
of the

FY 2024

-
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, expenditures in

the Materials
, Supplies, and Maintenance classification
are significantly lower due to the move of

vehicle related costs to

Interdepartmental
Charges, and
the consolidation of

department
related software to the

Information Technology Department.

Overall, the expenditure

budget is projected to generate $2.5 million surplus, primarily due to Salaries and Employee Benefits, which reflects 77

.0 FTE vacancies
.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July - December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 195,000$ 86,817$ 44.5% 314,000$ 94,663$ 30.1% 288,070$ (25,930)$ 91.7% Intergovernmental 65,969$ 20,371$ 30.9% 19,750$ 2,704$ 13.7% 5,410$ (14,340)$ 27.4% Charges for Services 448,673$ 174,970$

39.0% 369,200$ 164,509$ 44.6% 345,820$ (23,380)$ 93.7% Other Revenues -$ 405$ 0.0% -$ 30$ 0.0% 30$ 30$ 0.0% Operating Transfers In 9,847,116$ 4,962,946$

50.4% 10,966,238$ 5,483,119$ 50.0% 10,966,238$ -$ 100.0% Total Revenues 10,556,758$ 5,245,509$ 49.7% 11,669,188$ 5,745,025$

49.2% 11,605,568$ (63,620)$ 99.5%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 86,136,303$ 43,975,216$ 51.1% 95,386,102$ 48,567,680$ 50.9% 93,292,826$ 2,093,276$ 97.8% Salaries and Benefits Reimbursements (310,000)$ (80,539)$ 26.0% (260,000)$

(184,512)$

71.0% (375,000)$

115,000$ 144.2%
Materials, Supplies & Maintenance 2,616,602$ 1,041,310$

39.8% 730,298$ 329,836$ 45.2% 800,468$ (70,170)$ 109.6% Materials Reimbursements (11,397)$

(4,912)$ 43.1% (11,397)$ (24,090)$ 211.4% (27,400)$ 16,003$

240.4%
Professional/Contract Services 3,795,476$ 808,040$

21.3% 2,947,166$ 999,975$ 33.9% 2,607,700$ 339,466$ 88.5% Training, Travel & Membership Dues 462,500$ 240,048$

51.9% 468,025$ 203,441$ 43.5% 446,190$ 21,835$

95.3%
Liabilities, Settlements & Insurance 40,000$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Utilities 514,564$ 195,841$

38.1% 491,700$ 169,933$ 34.6% 465,160$ 26,540$

94.6%
Interdepartmental Charges 8,690,246$ 4,348,056$

50.0% 10,074,824$ 5,037,415$ 50.0% 10,074,824$ -$ 100.0% Capital Acquisitions -$ -$ 0.0% 100,000$ 84,365$

84.4% 100,000$ -$ 100.0% Total Expenses 101,934,294$

50,523,060$

49.6% 109,926,718$ 55,184,043$ 50.2% 107,384,768$ 2,541,950$

97.7%
Revenues Less Expenditures (91,377,536)$ (45,277,551)$ (98,257,530)$ (49,439,018)$

(95,779,200)$ 2,478,330$
Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
86 79

Police Operating Budget Summary (Traffic Safety Fund)

As of

December 31
, 2025, a total of

$
26,000

,
or 36.2

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City realized $19,000

in revenues,
representing 10.5

%
of the

FY 2024

-
25 revenue budget . The increase in the Fines, Forfeitures and Penalties classification is attributable to

higher revenues from
traffic fines . Overall, year -end
revenues are projected to fall short of budget by approximately

$16
,000.

On the expenditure side, the department expended

$
47,000 or 66.1% of its FY 2025

-
26 budget, as of
December 31, 2025.

During the same period ending

December 31
, 2024, expenditures totaled $0 or
0% of the

FY 2024

-
25 expenditure budget. Actual expenditure in this fund relates to Crossing Guard Services, which

are projected to end

the fiscal year

below

budget
,

matching projected revenues
.

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Fines, Forfeitures and Penalties 180,000$ 18,609$ 10.3% 70,950$ 25,488$ 35.9% 55,110$ (15,840)$ 77.7% Use of Money and Property -$ 293$ 0.0% -$ 217$ 0.0% -$ -$ 0.0% Total Revenues 180,000$

18,902$ 10.5% 70,950$ 25,705$ 36.2% 55,110$ (15,840)$ 77.7% Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Professional/Contract Services 180,000$ -$ 0.0% 70,950$ 46,910$ 66.1% 55,110$ 15,840$ 77.7% Total Expenses 180,000$

-$ 0.0% 70,950$ 46,910$ 66.1% 55,110$ 15,840$ 77.7% Revenues Less Expenditures -$ 18,902$ -$ (21,205)$ -$ -$ Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
87 80

Police Staffing Budget Summary (General Fund)

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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

-$
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 - -$

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 - -$

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 3.00

3.00 - -$
Systems Analyst 1.00

- - - -

Total FTE 359.00

354.00

359.00

359.00 - -$
88 81

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

89 82

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

As of

December 31
, 2025, a total of

2.2 million, or 44.1

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024

, the City realized

2.1 million in
revenues, representing 45.7

%
of the

FY 2024

-
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. This increase is partially offset by a decrease in the Charges for Services

classification
,
which reflects timing of receipts related to traffic signal maintenance.

Overall,
year-end revenues are
projected to finish

slightly above

budget by approximately

$
2,000.

On the expenditure side, the Public Works

G
eneral Fund recorded $10.8

million in expenditures,

46.8 %
of the

FY 2025

-
26 expenditure budget as of December 31, 2025

During the same period ending
December 31, 2024

, the City expended
$9.1 million or 43.3

%
of the

FY 2024

-
25 expenditure budget.

The i

ncrease 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 increases.

Interdepartmental Charges

increased due to

the
increase in Fleet Vehicle Maintenance charges moved

from
the Materials,
Supplies and Maintenance classification as well as contributions to the Self-Insurance Fund. Overall, expenditures are projected to generate

a
surplus of $ 670,000 primarily from the
Professional/Contract Services classification driven by lower

costs
related to

storm drain repairs
and
tree trimming services, partially offset by

an
increase in

Salaries and

E
mployee Benefits for overtime
required to maintain operations while the Department manages

18.25 FTE vacancies.

Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Charges for Services 267,151$ 193,557$ 72.5% 560,110$ 14,248$ 2.5% 560,110$ -$ 100.0% Other Revenues 6,083$ 3,481$ 57.2% -$ 4,221$ 0.0% 5,270$ 5,270$ 0.0% Operating Transfers In 4,228,071$ 1,859,909$ 44.0% 4,521,169$

2,221,390$ 49.1% 4,518,121$

(3,048)$ 99.9%
Total Revenues 4,501,305$ 2,056,947$

45.7% 5,081,279$ 2,239,859$

44.1% 5,083,501$ 2,222$ 100.0%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 9,600,365$ 4,479,621$ 46.7% 10,786,017$ 5,585,130$ 51.8% 11,000,918$ (214,901)$ 102.0% Salaries and Benefits Reimbursements (172,500)$ (31,501)$ 18.3% (172,500)$ (54,638)$ 31.7% (120,000)$ (52,500)$ 69.6% Materials, Supplies & Maintenance 3,323,631$ 1,418,229$ 42.7% 1,759,646$

764,129$ 43.4% 1,604,555$

155,091$ 91.2%
Materials Reimbursements (65,000)$ (20,215)$ 31.1% (65,000)$ (32,866)$ 50.6% (70,518)$ 5,518$ 108.5% Professional/Contract Services 2,285,360$ 591,642$ 25.9% 2,488,000$

530,338$ 21.3% 1,842,286$

645,714$ 74.0%
Training, Travel & Membership Dues 61,361$

1,825$ 3.0% 45,678$ 13,670$

29.9% 26,493$ 19,185$

58.0%
Liabilities, Settlements & Insurance 100,000$ 29,874$

29.9% -$ -$ 0.0% -$ -$ 0.0% Utilities 991,199$ 372,011$ 37.5% 930,300$

441,554$ 47.5% 984,373$

(54,073)$ 105.8%
Interdepartmental Charges 4,782,077$ 2,256,636$ 47.2% 7,016,760$

3,508,380$ 50.0% 7,016,760$

-$ 100.0%
Capital Acquisitions 205,000$ 47,427$

23.1% 202,035$

5,772$ 2.9% 35,575$ 166,460$ 17.6% Total Expenses 21,111,493$ 9,145,549$ 43.3% 22,990,936$

10,761,469$ 46.8% 22,320,442$

670,494$

97.1%
Revenues Less Expenditures (16,610,188)$

(7,088,602)$ (17,909,657)$ (8,521,610)$ (17,236,941)$ 672,716$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
90 83

Public Works Operating Budget Summary (Sanitation Fund)

As of

December 31
, 2025, a total of

8.1 million, or 42.5

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024

, the City realized

7.6 million in
revenues, representing 40.3

%
of the

FY 2024
-25

revenue budget . The increase

is primarily
attributable to

higher
Charges for Services , reflecting the timing of invoice processing, and

higher
Other Revenues due to construction waste non-compliance penalties. This increase is partially offset by lower Operating Transfers In , resulting from

the
consolidation of the Sanitation Vehicle
Replacement Fund into the Sanitation Operating Fund .

Overall,
the revenue budget is projected to
end the fiscal year with a surplus of approximately

1.2 million primarily driven by Franchise Fees for
private haulers exceeding budgeted figures.

On the expenditure side, this fund realized expenditures of

8.2 million or 40

.8%
of the FY 2025

-
26 expenditure budget as of December 31, 2025

During the same period ending

December 31
, 2024

, the
fund expended $7.8 million or 39.1

%
of the

FY 2024

-
25 expenditure budget. 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 from Materials, Supplies & Maintenance

to
Interdepartmental Charges starting FY
2025

26. It is projected that the expenditure budget will operate at a surplus of

$1.5
million at year-
Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Licenses, Fees and Permits 1,128,063$ 307,630$ 27.3% 583,350$ 378,385$ 64.9% 1,700,400$ 1,117,050$ 291.5% Use of Money and Property 294,000$ 197,495$ 67.2% 335,298$ 209,970$ 62.6% 403,690$ 68,392$ 120.4% Charges for Services 15,339,406$ 6,123,048$ 39.9% 17,457,220$ 6,987,523$ 40.0% 17,352,430$ (104,790)$ 99.4% Other Revenues 125,000$ 54,809$ 43.8% 110,000$ 237,333$ 215.8% 237,580$ 127,580$ 216.0% Operating Transfers In 2,032,346$ 945,954$ 46.5% 507,871$ 258,942$ 51.0% 517,872$ 10,001$ 102.0% Total Revenues 18,918,815$ 7,628,936$

40.3% 18,993,739$ 8,072,153$

42.5% 20,211,972$ 1,218,233$

106.4%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Salaries and Employee Benefits 4,716,434$ 2,077,067$ 44.0% 4,832,863$ 2,225,745$ 46.1% 4,369,585$ 463,278$ 90.4% Salaries and Benefits Reimbursements -$ (4,224)$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Materials, Supplies & Maintenance 3,886,729$ 1,470,419$ 37.8% 1,271,962$ 204,068$ 16.0% 1,124,144$ 147,818$ 88.4% Materials Reimbursements (150,000)$ (50,381)$ 33.6% (115,958)$ (15,421)$ 13.3% (165,958)$ 50,000$ 143.1% Professional/Contract Services 5,022,008$ 1,558,542$ 31.0% 5,213,539$ 1,743,699$ 33.4% 4,584,273$ 629,266$ 87.9% Training, Travel & Membership Dues 82,300$ 41,795$ 50.8% 69,355$ 39,170$ 56.5% 46,500$ 22,855$ 67.0% Depreciation and Amortization 1,095,493$ 416,367$ 38.0% 1,200,000$ 356,167$ 29.7% 1,008,386$ 191,614$ 84.0% Liabilities, Settlements & Insurance 60,000$ 3,640$ 6.1% -$ -$ 0.0% -$ -$ 0.0% Utilities 4,190$ 785$ 18.7% -$ -$ 0.0% -$ -$ 0.0% Interdepartmental Charges 2,067,676$ 962,196$ 46.5% 5,735,913$ 2,728,966$ 47.6% 5,730,712$ 5,201$ 99.9% Debt Service 90,000$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Capital Acquisitions 9,382,966$ -$ 0.0% 5,663,221$ 4,775,611$ 84.3% 5,663,221$ -$ 100.0% Asset Contra Account (9,382,966)$ -$ 0.0% (5,663,221)$ (4,775,611)$ 84.3% (5,663,221)$ -$ 100.0% Bad Debts and Other Losses 52,860$ 31,732$ 60.0% 50,000$ 39,698$ 79.4% 39,698$ 10,302$ 79.4% Other Operating Transfers Out 3,134,975$ 1,331,812$ 42.5% 1,778,048$ 849,830$ 47.8% 1,775,000$ 3,048$ 99.8% Total Expenses 20,062,665$ 7,839,750$

39.1% 20,035,722$ 8,171,922$

40.8% 18,512,340$ 1,523,382$

92.4%
Revenues Less Expenditures (1,143,850)$ (210,814)$ (1,041,983)$ (99,769)$ 1,699,632$

2,741,615$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
91 84

end, primarily due to salary savings from 5.25 FTE vacancies and Professional/Contract Services caused by lower than

antici
pated

dump fees
.

Overall, the Sanitation Fund is projected to

operate at
an approximate surplus of $1.7 million. 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

December 31
, 2025, a total of

3.7 million, or 45.5

%
of FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024

, the City realized

3.6 million in
revenues, representing 41.8

%
of the

FY 2024
-25

revenue budget . The increase

is primarily
attributable to

higher
Charges for Services, reflecting the timing of invoice

processing
, and

increases
in the

Use of Money and Property

classification related to investment earnings . These gains are partially offset by lower Operating Transfers In

due to the consolidation of the Sewer Vehicle
Replacement Fund into the Sewer Operating Fund . Overall, revenue budget is projected to end the fiscal year with a surplus of approximately $ 139,000 primarily driven by the Use of Money and Property classification.

On the expenditure side,

this fund realized
expenditures of

4.4 million or 61.9

%
of the FY 2025

-
26 expenditure budget

as of

December 31
, 2025

During the same period ending

December 31
, 2024

, the
Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Use of Money and Property 699,000$ 309,214$ 44.2% 601,771$ 457,003$ 75.9% 690,880$ 89,109$ 114.8% Charges for Services 7,315,073$ 3,131,654$ 42.8% 7,553,510$ 3,235,387$ 42.8% 7,590,660$ 37,150$

100.5%
Other Revenues 50,000$

27,396$

54.8% 10,000$

22,866$

228.7% 23,000$

13,000$

230.0%
Operating Transfers In 552,009$ 129,451$ 23.5% 35,827$

17,916$

50.0% 35,827$

-$ 100.0%
Total Revenues 8,616,082$ 3,597,715$

41.8% 8,201,108$

3,733,172$

45.5% 8,340,367$

139,259$

101.7%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 1,956,558$ 871,274$ 44.5% 2,065,769$ 1,125,775$ 54.5% 2,079,220$ (13,451)$ 100.7% Materials, Supplies & Maintenance 348,642$ 131,358$ 37.7% 196,305$ 22,605$

11.5% 121,230$ 75,075$

61.8%
Materials Reimbursements -$ (929)$

0.0% -$ (20,784)$ 0.0% (20,856)$ 20,856$

0.0%
Professional/Contract Services 509,250$ 135,725$ 26.7% 456,871$ 144,253$ 31.6% 349,423$ 107,448$ 76.5% Training, Travel & Membership Dues 15,246$

121$ 0.8% 12,368$

1,162$ 9.4% 4,750$ 7,618$ 38.4% Depreciation and Amortization 214,625$ 101,684$ 47.4% 1,350,000$ 675,951$ 50.1% 1,361,691$ (11,691)$ 100.9% Utilities 97,557$

29,453$

30.2% 93,083$

38,588$

41.5% 105,093$ (12,010)$ 112.9%
Interdepartmental Charges 744,053$ 346,094$ 46.5% 1,027,196$ 504,219$ 49.1% 1,077,760$ (50,564)$ 104.9% Capital Acquisitions 4,423,355$ 1,338,196$ 30.3% 249,602$ 95,297$

38.2% 229,602$ 20,000$

92.0%
Asset Contra Account (4,423,355)$

(1,338,196)$ 30.3% (249,602)$ (90,506)$ 36.3% (224,602)$ (25,000)$ 90.0% Bad Debts and Other Losses 20,000$

10,863$

54.3% 30,000$ 16,841$

56.1% 18,000$

12,000$ 60.0%
Other Operating Transfers Out 1,917,662$ 1,457,056$ 76.0% 1,900,000$ 1,900,000$ 100.0% 1,900,000$ -$ 100.0% Total Expenses 5,823,593$

3,082,699$

52.9% 7,131,592$

4,413,401$

61.9% 7,001,311$

130,281$

98.2%
Revenues Less Expenditures 2,792,489$

515,016$

1,069,516$

(680,229)$ 1,339,056$

269,540$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
92 85

City expended $3.1 million or 52.9 % of the FY 2024 - 25 expenditure budget. Expenditures increased mostly in the Other Operating Transfers Out classification due to Transfers to

the
Sewer Capital Fund.

Also, Depreciation and Amortization classification shows an increase due to the transfer of depreciation expense from the Sewer Capital Fund to the Sewer Operating Fund . The expenditure budget is projected to end the year at

modest surplus

of approximately $
130,000, primarily due to
savings in the Professional/Contract Services classification resulting from fewer emergency repairs for sewer mains . Overall, the Sewer

F
und is projected to

operate
with a $1.3 million 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)

As of December 31, 2025, the Water Fund

realized revenues of $

28.9 million
,

46.8 % of the

FY 2025

-
26 revenue budget. During the same period ending

December 31
, 2024

, the City realized revenues of
$27

.3
million, or 49.7% of the

FY 2024

-
25 revenue budget.

Within
the Charges for Services
classification, revenues are up $1. 4 million, or 5.5%, 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
Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Use of Money and Property 1,281,000$ 1,074,913$ 83.9% 2,005,039$ 1,281,120$ 63.9% 2,305,460$ 300,421$ 115.0% Charges for Services 53,095,000$ 25,936,785$ 48.8% 59,689,460$ 27,363,523$ 45.8% 60,497,680$ 808,220$ 101.4% Other Revenues 5,000$ 49,757$

995.1% 50,000$

245,296$ 490.6% 252,580$ 202,580$ 505.2% Operating Transfers In 422,501$ 191,267$ 45.3% 24,388$

12,192$ 50.0% 24,388$ -$ 100.0% Total Revenues 54,803,501$ 27,252,722$ 49.7% 61,768,887$ 28,902,131$ 46.8% 63,080,108$ 1,311,221$ 102.1% Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 5,949,210$ 2,776,330$ 46.7% 6,212,724$ 3,000,027$ 48.3% 5,653,332$ 559,392$ 91.0% Salaries and Benefits Reimbursements -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Materials, Supplies & Maintenance 1,938,160$ 343,445$ 17.7% 1,627,164$ 308,099$ 18.9% 1,294,450$ 332,714$ 79.6% Materials Reimbursements -$ (241)$

0.0% -$ (538)$ 0.0% (1,500)$ 1,500$ 0.0% Parts, Fuel & Lubricants Inventory Purch 612,670$ 150, 768$ 24.6% 612,670$ 151,118$ 24.7% 530,000$ 82,670$ 86.5% Parts, Fuel & Lubricants Contra (612,670)$ (150,768)$ 24.6% (612,670)$ (151,118)$ 24.7% (530,000)$ (82,670)$ 86.5% Professional/Contract Services 2,031,344$ 769,006$ 37.9% 2,200,563$ 433,000$ 19.7% 1,890,828$ 309,735$ 85.9% Water Supply Costs 34,785,000$ 17,686,766$ 50.8% 40,477,000$ 13,570,340$ 33.5% 39,390,000$ 1,087,000$ 97.3% Training, Travel & Membership Dues 52,453$

3,109$ 5.9% 39,183$

6,559$ 16.7% 24,654$

14,529$

62.9%
Depreciation and Amortization 156,091$ 74,229$

47.6% 2,950,000$ 1,437,282$ 48.7% 2,878,000$ 72,000$

97.6%
Liabilities, Settlements & Insurance 16,008$

-$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Utilities 205,820$ 92,350$

44.9% 206,189$ 112,604$ 54.6% 290,000$ (83,811)$ 140.6% Interdepartmental Charges 3,650,457$ 1,799,706$ 49.3% 4,249,952$ 1,968,553$ 46.3% 4,035,316$ 214,636$ 94.9% Debt Service 644,517$ 322,258$ 50.0% 1,567,288$ 322,258$ 20.6% 1,462,570$ 104,718$ 93.3% Debt Service Reimbursements (580,744)$ (295,521)$ 50.9% (1,307,414)$

(302,537)$ 23.1% (1,236,790)$

(70,624)$ 94.6%
Capital Acquisitions 884,109$ -$ 0.0% 1,638,868$ 236,123$ 14.4% 600,000$ 1,038,868$ 36.6% Asset Contra Account (884,109)$ -$ 0.0% (1,638,868)$

(236,123)$ 14.4% (600,000)$ (1,038,868)$

36.6%
Bad Debts and Other Losses 150,000$ 12,598$

8.4% 150,000$ 7,781$ 5.2% 10,000$

140,000$ 6.7%
Other Operating Transfers Out 2,906,903$ 2,683,467$ 92.3% 2,953,507$ 2,951,752$ 99.9% 2,953,507$ -$ 100.0% Total Expenses 51,905,219$ 26,267,502$ 50.6% 61,326,156$ 23,815,180$ 38.8% 58,644,367$ 2,681,789$

95.6%
Revenues Less Expenditures 2,898,282$ 985,220$

442,731$

5,086,951$

4,435,741$

3,993,010$
Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
93 86

to end the fiscal year with a revenue surplus of $1.3 million primarily driven by the Charges for Services classification

from approved rate increases
.

On the expenditure side, th e fund realized expenditures of

23.8 million or 38.8

%
of the FY 2025-26

expenditure budget

as of

December 31
, 2025

During the same period ending

December 31
, 2024

,
the
fund expended $26.3

million or 50.6

%
of the

FY
2024

-
25 expenditure budget.

The
decrease is
primarily driven by lower Water Supply Costs due to timing of payments, partially offset by increased Depreciation and Amortization due to the transfer of depreciation expense from the Water Capital Fund to the Water Operating Fund . Overall, the Water Operating Fund is projected to end the fiscal year with an expenditure surplus of $2.7 million

due to Water Supply Cost s and salary savings.

Despite the overall rate increase in Water Supply Cost, projected purchase volume is lower compared to the budget.

The Water Fund has

6. 25 FTE vacancies and is projected to generate $559,000 in budgetary savings.

Overall, the Water Fund is projected to operate at a

4.4 million surplus, primarily driven by the
projected

surplus

in
Water Supply Costs

and Charges for Services.

Public Works Operating Budget Summary (Street Lighting District Fund)

As of

December 31
, 2025, a total of $1.1 million, or 57.4

% of

FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending

December 31
, 2024, the City

also
realized $1.1 million

in
revenues, representing 58.4

% of the

FY 2024

-
25 revenue budget. Overall, the Street Lighting District Fund is projected to end the fiscal year with a revenue

surplus

approximately
$12,000

On the expenditure side,

this fund realized
expenditures of

$
801

,000
or 41.4

%
of the

FY 2025

-
26 expenditure budget

as of

December 31
, 2025.

During the same period ending

December 31
, 2024

, the
fund expended $766,000 or 41.1

%
of the

FY
2024

-
25 expenditure budget.

The
increase in
expenditures is primarily due

to an increase in Utilities driven by rate increase

effective October 2025,
Revenues
Amended
Budget
July -
December
Actuals
Budget
Received
Amended
Budget
July -
December
Actuals
Budget
Received
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Taxes 1,291,500$ 525,667$ 40.7% 1,291,371$ 513,688$ 39.8% 1,291,371$ -$ 100.0% Operating Transfers In 574,772$ 564,988$ 98.3% 646,457$ 597,900$ 92.5% 658,629$ 12,172$ 101.9% Total Revenues 1,866,272$

1,090,655$

58.4% 1,937,828$

1,111,588$

57.4% 1,950,000$

12,172$ 100.6%
Expenses
Amended
Budget
July -
December
Actuals
Budget
Expended
Amended
Budget
July -
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Professional/Contract Services 22,150$ -$ 0.0% 22,150$ (8,507)$ -38.4% 19,000$ 3,150$ 85.8% Utilities 1,844,122$ 766,227$ 41.5% 1,915,678$ 809,898$ 42.3% 1,931,000$ (15,322)$ 100.8% Total Expenses 1,866,272$

766,227$ 41.1% 1,937,828$

801,391$ 41.4% 1,950,000$

(12,172)$ 100.6%
Revenues Less Expenditures -$ 324,428$ -$ 310,197$ -$ -$ Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
94 87

and it is projected to generate a modest deficit of $1 2,000. The fund is expected to be balanced at the end of the fiscal year.

Public Works Staffing Budget Summary (General Fund and Non-General Fund)

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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

8.00 8.00 - -$ 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 45.00 45.00 - -$ 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 36.00 36.00 - -$ 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

- -$
95 88

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

96 89

Transit Operating Budget Summary (Transit Fund)

As of

December 31
, 2025

, a total of

19.8 million, or 51.3

%
of

FY 2025

-
26 budgeted revenues, has been
collected. During the same period ending December 31 , 2024

, the City realized

18.9 million in
revenues, representing 53.5

%
of the

FY 2024

-
25 revenue budget
. This

increase

is primarily

driven by
higher receipts in the

Intergovernmental
, Charges for Services , and Operating Transfers In
classifications. Year-to-date Intergovernmental revenues are up $138,000, primarily due to

timing of
receipts. Charges for Services revenues have increased by $192,000

,
reflecting higher passenger cash
fares from the City’s micro -transit program , Connect Torrance, as well as

transit access pass
revenues and advertising on shelters . Operating Transfers In

are up by $504,000 due to increased
allocations from Propo

sition A. While year-to-date revenues are above the prior year at this time, collections are below the growth assumptions built into the FY 2025 -26 Adopted Budget. Based on current trends, staff projects year -end revenues to fall approximately $

887,000
below budget ,
primarily due to lower anticipated funding for Measure M and Measure R.

As of this Budget Review Report, the Transit Department has $16.2

million in unspent Federal Transit
Administration grants dating back to 2009. Additionally, the Transit Department has a total of $ 63.7 million in unspent grants from other sources.

On the expenditure side, the

Transit
Fund realized expenditures of

21.3 million or 45.5

%
of the

FY
2025

-
26 budget as of

December 31
, 2025

During the same period ending December 31, 2024

, the City
Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Use of Money and Property 1,718,000$ 879,908$ 51.2% 1,792,387$ 851,954$ 47.5% 1,594,710$ (197,677)$ 89.0% Intergovernmental 29,545,571$ 15,782,925$ 53.4% 30,995,342$ 15,920,463$ 51.4% 30,085,200$ (910,142)$ 97.1% Charges for Services 940,001$ 691,609$ 73.6% 1,718,200$ 883,263$ 51.4% 1,843,010$ 124,810$ 107.3% Other Revenues 30,000$ 736$ 2.5% 2,500$ 97,272$ 3890.9% 98,338$

95,838$

3933.5%
Operating Transfers In 3,000,000$ 1,512,000$ 50.4% 4,000,000$ 2,016,000$ 50.4% 4,000,000$ -$ 100.0% Total Revenues 35,233,572$ 18,867,178$ 53.5% 38,508,429$ 19,768,952$ 51.3% 37,621,258$ (887,171)$ 97.7% Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Salaries and Employee Benefits 23,152,327$ 10,239,751$ 44.2% 24,807,618$ 12,048,879$ 48.6% 24,190,508$ 617,110$ 97.5% Materials, Supplies & Maintenance 3,593,905$ 1,436,728$ 40.0% 3,497,160$ 1,382,319$ 39.5% 3,079,307$ 417,853$ 88.1% Materials Reimbursements (250,000)$ (41,513)$ 16.6% (250,000)$ (58,300)$ 23.3% (156,000)$ (94,000)$ 62.4% Parts, Fuel & Lubricants Inventory Purch 1,811,250$ 602, 209$ 33.2% 1,811,250$ 813,991$ 44.9% 1,653,500$ 157,750$ 91.3% Parts, Fuel & Lubricants Contra (1,811,250)$

(602,209)$ 33.2% (1,811,250)$

(813,991)$ 44.9% (1,653,500)$

(157,750)$ 91.3%
Professional/Contract Services 3,358,586$ 1,160,937$ 34.6% 4,887,942$ 1,416,177$ 29.0% 4,362,790$ 525,152$ 89.3% Training, Travel & Membership Dues 125,037$ 50,684$

40.5% 121,289$ 82,811$

68.3% 136,731$ (15,442)$ 112.7%
Depreciation and Amortization 3,238,219$ 1,241,744$ 38.3% 3,401,518$ 1,029,898$ 30.3% 2,727,543$ 673,975$ 80.2% Liabilities, Settlements & Insurance 217,639$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Utilities 233,466$ 112,776$ 48.3% 344,100$ 132,762$ 38.6% 284,900$ 59,200$

82.8%
Interdepartmental Charges 7,172,359$ 3,505,191$ 48.9% 8,712,352$ 4,004,473$ 46.0% 8,006,803$ 705,549$ 91.9% Capital Acquisitions 50,000$

30,144$

60.3% 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 630,954$ 587,516$ 93.1% 1,269,940$ 1,259,972$ 99.2% 1,269,940$ -$ 100.0% Total Expenses 41,472,492$ 18,323,958$ 44.2% 46,791,919$ 21,298,991$ 45.5% 43,902,522$ 2,889,397$

93.8%
Revenues Less Expenditures (6,238,920)$ 543,220$

(8,283,490)$ (1,530,039)$ (6,281,264)$ 2,002,226$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
97 90

expended $18.3 million or 44.2 % of the FY 2024 - 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 Benefits classification is primarily driven by

vacancy savings

because
of 21.50 FTE vacancies as of

December
31 , 2025

While the department has seen progress in filling these vacancies, it is still projected that $617,000 in salary savings will be realized at fiscal year -end. The Depreciation and Amortization classification has a projected surplus of

$
674,000 due to the delay in delivery of

vehicle purchases
.

The Materials, Su

pplies & Maintenance classification has a projected surplus of $418,000 due to lower than anticipated vehicle repair

expenses.

The $706,000 projected savings in Interdepartmental
Charges reflects lower indirect costs resulting from the department vacancies.

Overall, the Transit
Fund is projected to end the year with a

6.3 million deficit. This fund’s budget was originally adopted with a planned use of fund balance of $7.8 million.

98 91

Transit Staffing Budget Summary (Non-General Fund)

Job Classification
FY 2024-25
Actual
FY 2025-26
Adopted
Budget

FY 2025-26
Amended
Budget

FY 2025-26
Mid-Year
Proposed
FY 2025-26
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 - - - -$

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

205.30

- -$
99 92

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

December 31
, 2025,

t
he Non-Departmental budget recorded expenditures of

19.6 million, or
131.6

%
of its

FY 2025

-
26 budget. For the same period ending December 31 , 202 4, expenditures totaled

17.8 million, or

1 47.8

%
of the FY 2024

-
25 expenditure budget. This increase is primarily due
to increase in

the
Other Operating Transfers Out classifications. Other Operating Transfers Out increased due to Transfers to the Capital Improvement Fund by $1 0.4 million, partially offset by decreased Transfers to

the
CEPPT Fund

by
$7.1 million

and decreased Transfers to IT Replacement
Fund by $1.4 million. Overall, Non

-
Departmental expenditure

s
are projected to generate deficit of
$120

,000 at year

-
end primarily due to a surplus of $987

,000
in Debt Service Reimbursements and a
deficit of

1.2 million in Reimbursements-Indirect Costs . The Debt Service Reimbursements classification reflects payroll-related reimbursements recorded through the City’s payroll interface.

As of

December 31
, 2025, reimbursements total

10.5) million, with year -end activity projected at
$(20.9) million resulting in a projected surplus of approximately

$
987

,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

December 31
, 2025, reimbursements total $(4.7) million
compared to a budget of

10.7 ) million
. Based on year -to-date activity, year -end reimbursements are projected at

9.5) million, resulting in a projected deficit of approximately

1.2 million

94.1%
Materials Reimbursements (5,411)$

(2,769)$ 51.2% (5,500)$

(3,751)$ 68.2% 7,500$ (13,000)$ -136.4% Professional/Contract Services 1,053,108$

875,978$ 83.2% 1,396,901$ 922,268$ 66.0% 1,336,114$ 60,787$

95.6%
Training, Travel & Membership Dues 488,644$ 294,201$ 60.2% 590,959$ 370,865$ 62.8% 578,959$ 12,000$

98.0%
Debt Service 23,126,738$ 15,439,906$

66.8% 23,631,682$ 16,048,403$ 67.9% 23,631,682$ -$ 100.0% Debt Service Reimbursements (19,341,206)$ (9,701,491)$

50.2% (19,862,721)$ (10,456,347)$ 52.6% (20,850,000)$ 987,279$ 105.0% Capital Acquisitions -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Asset Contra Account -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Bad Debts and Other Losses 1,000$ 12$ 1.2% 1,000$ 12$ 1.2% 100$

900$ 10.0%
Reimbursements-Indirect Costs (9,147,553)$

(4,416,600)$

48.3% (10,741,685)$ (4,651,648)$ 43.3% (9,542,153)$ (1,199,532)$

88.8%
Other Operating Transfers Out 15,408,129$ 15,224,714$

98.8% 19,147,014$ 17,252,903$

90.1% 19,147,014$ -$ 100.0% Total Expenses 12,064,204$ 17,826,402$ 147.8% 14,881,860$ 19,584,541$ 131.6% 15,002,320$ (120,460)$ 100.8% Prior Year FY 2024-25 Current Year FY 2025-26
100

93 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 December 31, 2025. The Tournament of Roses Float expenditure increased

by
$50,000 due
to an increase in the

donation to

the
Torrance Rose Float Association, compared to year prior.

The
Community Programs are projected to generate surplus of $35,000 at year

-
end due to a surplus in
Discover Torrance TBID & Downtown Torra nce BID expenditure

, as the

efforts t
o secure enough
support to proceed with the formation of a Business Improvement District in Downtown

is still
ongoing and is not projected to be finalized during the FY 2025

26. 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

FY 2025

-
26 for $23.6 million is fairly consistent with
FY 2024

-
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 classi

fication. 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)

Programs
Amended
Budget
July-
December
Actuals
Budget
Expended
Amended
Budget
July-
December
Actuals
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$ 5,045$ 50.5% 10,000$ -$ 0.0% 10,000$ -$ 100.0% F
riendship City Activities 70,000$ 16,966$ 24.2% 70,000$ 8,587$

12.3% 70,000$ -$ 100.0% Armed Forces Parade 143,890$ -$ 0.0% 323,890$ 2,892$

0.9% 323,890$ -$ 100.0% Tournament of Roses Float 127,400$ 125,196$ 98.3% 237,000$ 175,275$ 74.0% 237,000$ -$ 100.0% Discover Torrance TBID & Downtown Torrance BID 80,000$ 45,000$ 56.3% 80,000$

45,000$ 56.3% 45,000$

35,000$ 56.3%
Fourth of July Celebration 50,000$ 41,526$ 83.1% 50,000$ 47,705$ 95.4% 50,000$ -$ 100.0% Youth in Government Activities 3,200$

-$ 0.0% 3,200$ 445$ 13.9% 3,200$

-$ 100.0%
Community Clean Up 10,000$ 1,160$

11.6% 10,000$ 700$ 7.0% 10,000$

-$ 100.0%
City Yard Open House -$ -$ 0.0% -$ -$ 0.0% -$ -$ 0.0% Total Expenses 604,890$ 309,293$ 51.1% 894,490$ 355,004$ 39.7% 859,490$ 35,000$ 96.1% Prior Year FY 2024-25 Current Year FY 2025-26
Fund
Amended
Budget
July-
December
Actuals
Budget
Expended
Amended
Budget
July-
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Airport Fund (339,083)$ (153,981)$ 45.4% (379,796)$ (178,774)$ 47.1% (360,000)$ (19,796)$ 94.8% Fleet Fund (925,358)$ (451,132)$ 48.8% (1,016,630)$ (424,729)$ 41.8% (850,000)$ (166,630)$ 83.6% Sanitation Fund (1,024,593)$ (484,114)$ 47.2% (1,132,535)$ (464,664)$ 41.0% (1,132,535)$ -$ 100.0% Section 8 Housing Fund (156,072)$ (83,459)$

53.5% (166,013)$ (81,904)$ 49.3% (174,900)$ 8,887$ 105.4% Self-Insurance Fund (235,890)$ (114,459)$ 48.5% (305,657)$ (135,895)$ 44.5% (264,700)$ (40,957)$ 86.6% Sewer Fund (441,116)$ (205,143)$ 46.5% (479,539)$ (240,489)$ 50.2% (527,899)$ 48,360$ 110.1% Transit Fund (4,731,897)$ (2,284,959)$ 48.3% (5,835,816)$ (2,487,136)$ 42.6% (4,972,118)$ (863,698)$ 85.2% Water Fund (1,293,544)$ (639,353)$ 49.4% (1,425,699)$ (638,057)$ 44.8% (1,260,000)$ (165,699)$ 88.4% Total Indirect Cost (9,147,553)$

(4,416,600)$

48.3% (10,741,685)$ (4,651,648)$

43.3% (9,542,152)$

(1,199,533)$

88.8%
Prior Year FY 2024-25 Current Year FY 2025-26
101

94 As of December 31 , 2025, Indirect Cost Reimbursements to the General Fund totaled $(4.7) million, or 43.3

%
of the FY 2025-26

expenditure budget. For the same period ending December 31, 2024, reimbursements totaled $(4.4) million, or 48.3

%
of the

FY
2024

-
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 FY
2025

-
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 $1.2 million
below budget due to lower reimbursable salary and benefit costs across contributing funds , primarily due to vacancies.

Other Operating Transfers Out (General Fund - Operating Fund)

As of

December 31
, 2025,

expenditures totaled
$17

.3
million, or 90.1

%
of

the
FY 2025

-
26 expenditure
budget. For the same period ending December 31, 2024,

expenditures
totaled $15.2 million, or 98.8%
of the

FY
2024

-
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

December 31
, 2025,

expenditures totaled
$15.3 million, or 62.1

%
of

the
FY 2025

-
26 expenditure
budget. For the same period ending December 31, 2024,

expenditures
totaled $19.8 million, or 76.3%
of the

FY
2024

-
25 expenditure budget. This classification is projected to be fully expended by year - end.

Receiving Fund(s) Description
Amended
Budget
July-
December
Actuals
Budget
Expended
Amended
Budget
July-
December
Actuals
Budget
Expended
Annual
Projected
Total
Projected
Surplus/
(Deficit)
Projected
% of
Budget
Capital Project Funds Capital Improvement Projects 2,650,734$ 2,650,734$ 100.0% 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 3,000,187$ 3,000,187$ 100.0% 3,237,134$ 1,618,566$ 50.0% 3,237,134$ -$ 100.0% Street Light District Fund

Assessment 30,109$ 30,109$ 100.0% 30,110$ 15,054$ 50.0% 30,110$ -$ 100.0% Sanitation Fund
Citywide Refuse Collection
Reimbursement; Senior Discount
Subsidy 314,201$ 157,101$ 50.0% 460,780$ 230,400$ 50.0% 460,780$ -$ 100.0% Sewer Fund
Senior/Low-Income Wastewater
Discount Subsidy 34,347$ 17,172$ 50.0% 35,827$ 17,916$ 50.0% 35,827$ -$ 100.0% Water Fund
Senior/Low-Income Water
Discount Subsidy 18,284$ 9,144$ 50.0% 24,388$ 12,192$ 50.0% 24,388$ -$ 100.0% Total Transfers 15,408,129$ 15,224,714$ 98.8% 19,147,014$ 17,252,903$ 90.1% 19,147,014$ -$ 100.0% Prior Year FY 2024-25 Current Year FY 2025-26
Receiving Fund(s) Description
Amended
Budget
July-
December
Ac
tuals
Budget
Expended
Amended
Budget
July-
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
General Fund - Operating Fund City Manager Positions Offset 102, 447$ -$ 0.0% 232,266$ 98,202$ 42.3% 232,266$ -$ 100.0% General Fund - Operating Fund Police Position Offset 9,847,116$ 4,962,947$ 50.4% 10,966,238$ 5,483,119$ 50.0% 10,966,238$ -$ 100.0% General Fund - Operating Fund Fire Positions Offset 2,121,088$ 1,069,028$ 50.4% 2,214,813$ 1,107,408$ 50.0% 2,214,813$ -$ 100.0% General Fund - Operating Fund CIT Positions Offset 200,415$ 101,009$ 50.4% 205,520$ 102,760$ 50.0% 205,520$ -$ 100.0% General Fund - Assigned
General Fund Reserve
Contribution 5,000,000$ 5, 000,000$ 100.0% 5,000,000$ 2,500,002$ 50.0% 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 25,891,226$ 19,753,144$ 76.3% 24,597,552$ 15,270,206$ 62.1% 24,597,552$ -$ 100.0% Prior Year FY 2024-25 Current Year FY 2025-26
102

95 General Fund-Restricted Fund Operating Budget

As of

December 31
, 2025

, a total of

5.0 million or 113

.2
% of FY 2025

-
26 budgeted revenues have been
received. During the same period ending

December 31
, 2024, the City realized

0.7 million in
revenues, representing

1 07.7

%
of the

FY
2024-25 revenue budget . The decrease in

Operating
Transfers In

was mainly due to a $7.1 million reduction in Operating Transfers In from General Fund- Operating Fund to the Section 115 Trust (CEPPT) Fund, which was

partially
offset by an increase from
investment earnings. Overall, the General Fund -Restricted Fund is projected to end the fiscal year with a revenue

surplus
of $2.0 million, primarily due to

increase in investment earnings
of the CEPPT
Fund.

On the expenditure side,

th
e fund recorded $ 85

,000
in expenditures or 1.1% of the

FY 2025

-
26 expenditure budget

as of

December 31
, 2025. During the same period ending

December 31
, 2024

,
expenditures totaled $ 69

,000
or 41.8% of the

FY
20 24
-25

expenditure budget. The expenditure

budget is projected to end the

fiscal
year with a modest surplus of

about
$9 ,000

Taking both
revenues and expenditures into account, the

fund
is projected to finish the year with an overall
operating deficit of approximately $1.0 million.

This fund’s budget was originally adopted with a
planned use of fund balance of $2.9 million.

Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Licenses, Fees and Permits 350,000$ 64,672$ 18.5% 247,000$ 62,730$ 25.4% 235,950$ (11,050)$ 95.5% Use of Money and Property 248,058$ 1,304,626$ 525.9% 1,915,179$ 2,682,918$ 140.1% 3,967,100$ 2,051,921$ 207.1% 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$

10,729,565$ 107.7% 4,416,579$

5,000,048$

113.2% 6,457,450$

2,040,871$ 146.2%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Debt Service 15,000$ 14,654$ 97.7% 36,652$ 17,475$ 47.7% 36,000$ 652$ 98.2% Capital Acquisitions 122,675$ 26,348$

21.5% 75,000$

33,187$

44.2% 70,187$

4,813$ 93.6%
Other Expenditures 28,500$

28,391$

99.6% 73,500$

33,857$ 46.1% 70,000$

3,500$ 95.2%
Other Operating Transfers Out -$ -$ 0.0% 7,286,337$ -$ 0.0% 7,286,337$ -$ 100.0% Total Expenses 166,175$

69,393$ 41.8% 7,471,489$

84,519$ 1.1% 7,462,524$

8,965$ 99.9%
Revenues Less Expenditures 9,792,150$

10,660,172$ (3,054,910)$ 4,915,529$ (1,005,074)$ 2,049,836$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
103

96 General Fund-Assigned Fund Operating Budget

As of

December 31
, 2025, a total of

$4
.1 million or 57.9

%
of FY 2025

-
26 budgeted revenues have been
received. During the same period ending

December 31
, 2024, the City realized

7.8 million in
revenues, representing

98.5 %
of the

FY
20 24
-25 revenue budget. Overall, the General Fund-Assigned
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

$3
.4 million or 45.2

%
of the FY 2025

-
26 expenditure budget

as of

December 31
, 2025.

During the same period ending

December 31
, 2024

, the
City

expended

5.6 million

84 .0%

of the FY

2024

-
25 expenditure budget.

This

fund

is projected to
generate a modest surplus of $89,000. This fund’s budget was originally adopted with a

planned use
of fund balance

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 December 31, 2025,
the fund recorded both revenues and expenditure

of
$16.0 million, or

67 .9% of its FY 2025

-
26 budget.

For the same period ending December 31 , 2024,

both
revenues and expenditure totaled $15.4
Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Operating Transfers In 7,886,781$ 7,770,500$ 98.5% 7,111,091$ 4,118,568$ 57.9% 8,237,134$ 1,126,043$ 115.8% Total Revenues 7,886,781$

7,770,500$

98.5% 7,111,091$ 4,118,568$

57.9% 8,237,134$

1,126,043$

115.8%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/(Defic
i
t)
Projected
% of
B
udget
Capital Acquisitions 1,630,279$ 570,502$ 35.0% 2,517,299$ 898,820$ 35.7% 2,428,000$ 89,299$ 96.5% Other Operating Transfers Out 5,000,000$ 5,000,000$ 100.0% 5,000,000$ 2,500,002$ 50.0% 5,000,000$ -$ 100.0% Total Expenses 6,630,279$

5,570,502$

84.0% 7,517,299$

3,398,822$

45.2% 7,428,000$ 89,299$ 98.8%
Revenues Less Expenditures 1,256,502$

2,199,998$

(406,208)$ 719,746$

809,134$

1,215,342$

Prior Year FY 2024-25 Current Year FY 2025-26
Prior Year FY 2024-25 Current Year FY 2025-26
Revenues
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Amended
Budget
July -
December
Ac
tuals
Budget
Received
Annual
Projected

Total
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Use of Money and Property 23,107,338$ 15,442,659$ 66.8% 23,625,753$ 16,048,696$ 67.9% 23,625,753$ -$ 100.0% Total Revenues 23,107,338$ 15,442,659$ 66.8% 23,625,753$ 16,048,696$ 67.9% 23,625,753$ -$

100.0%
Expenses
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Amended
Budget
July -
December
Ac
tuals
Budget
Expended
Annual
Projected
T
otal
Projected
Surplus/
(
Deficit)
Projected
% of
B
udget
Debt Service 23,107,338$ 15,440,956$ 66.8% 23,625,753$ 16,047,732$ 67.9% 23,625,753$ -$ 100.0% Total Expenses 23,107,338$ 15,440,956$ 66.8% 23,625,753$ 16,047,732$ 67.9% 23,625,753$ -$

100.0%
Revenues Less Expenditures -$ 1,703$ -$ 964$ -$ -$ Prior Year FY2024-25 Current Year FY2025-26
Prior Year FY2024-25 Current Year FY2025-26
104

97 million, or 6 6.8% of the FY 2024 - 25 budget. The Debt Service Fund is projected to fully realize its amended budget

and remain balanced at year
-end.

105

CAPITAL

IMPROVEMENT
PLAN
Mid-Year Budget Review Report
106

98 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 (FY 2025

-
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 6-month

period

ended December 31, 2025, the City has

spent
$14.7

million in
capital investments.

CIP Summary by Project Type

CIP Structure
The CIP is a five - year financial plan fo cused on 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 s erve 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 FY 2024 - 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
to a department’s operations that are one -time in nature

and not capitalized. Examples include
Capital Project Type
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Parks 39,373,168 1,205,758 897,963 37,269,447 Facilities 60,829,778 4,666,449 2,751,786 53,411,543 IT Infrastructure 415,500 25,611 34,430 355,458 Public Right of Way 118,997,807 42,805,384 6,455,377 69,737,046 Sewer/Water Utilities 43,436,234 18,099,208 107,572 25,229,454 Storm Drain/Basins 19,812,129 8,906,844 1,113,222 9,792,063 Operating Project 29,262,728 10,233,682 2,791,019 16,238,028 Other 4,734,125 455,405 514,107 3,764,613 Total Expenditures 316,861,470$ 86,398,341$

14,665,477$

215,797,652$
107

99 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 main tenance 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 don’t align with the other Project Type categories . Examples of projects in this category include the upgrade of Downtown Torrance lights and the digital sign modernization.

108

100

Parks
The following section summarizes the planned capital investments at parks across the City, summarized by location. The City

has
spent $898,000

as of December 31, 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-Dec
Actuals
Life-To-Date
Balance
Alta Loma Park PRK0001 945,000 - - 945,000 Columbia Park PRK0002 10,221,933 395,692 48,514 9,777,727 Delthorne Park PRK0004 404,956 331,291 57,305 16,361 Discovery Park PRK0006 132,103 132,103 - - El Nido Park PRK0007 11,380,000 - - 11,380,000 Entradero Park PRK0010 57,420 - - 57,420 Guenser Park PRK0012 500,000 12,670 34,489 452,841 La Carretera Park PRK0014 149,800 149,800 - - Lago Seco Park PRK0017 146,358 10,450 122,781 13,127 Madrona Marsh Nature Center PRK0034 82,127 - 82,127 - 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 94,261 546,778 3,065,089 Total Expenditures 39,373,168$

1,205,758$

897,963$

37,269,447$

Alta Loma Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Replace Playground Equipment $945,000 - - $945,000 Total Expenditures 945,000$ -$ -$ 945,000$ Funding Source(s)
DIF - Community Services $70,000 - - $70,000 Measure A $720,000 - - $720,000 Measure SST Fund $155,000 - - $155,000 Total Expenditures $945,000 -$ -$ $945,000 26126 Delos Dr, Torrance, CA 90505 | District 6
Alta Loma Park
109

101

Columbia Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Construct Dog Park 60,000 12,075 - 47,925 Refurbish Bocce Courts 161,933 143,943 - 17,990 World War ll Camp Wall Monument 9,000,000 199,736 48,314 8,751,950 WWII Memorial Supporting Infrastructure
Improvements 1,000,000 3 9,938 200 959,862 Total Expenditures 10,221,933$ 395, 692$ 48,514$ 9,777,727$ 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 48,514 4,711,812 Total Expenditures 10,221,933$ 395, 692$ 48,514$ 9,777,727$ Columbia Park
4045 190th St, Torrance, CA 90504 | District 3
Delthorne Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Renovate Park Restrooms 404,956 331,291 57,305 16,361 Total Expenditures 404,956$ 331,291$ 57,305$ 16,361$ Funding Source(s)
Measure SST Fund 404,956 331,291 57,305 16,361 Total Expenditures 404,956$ 331,291$ 57,305$ 16,361$ Delthorne Park
3401 Spencer St, Torrance, CA 90503 | District 3
Discovery Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Urban Tree Project 132,103 132,103 - - Total Expenditures 132,103$ 132,103$ -$ -$ Funding Source(s)
Other Grants 132,103 132,103 - - Total Expenditures 132,103$ 132,103$ -$ -$ Discovery Park
22526 Ocean Ave,Torrance, CA 90503 | District 5
110

102

El Nido Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Renovate Park 11,030,000 - - 11,030,000 Replace Playground Equipment 350,000 - - 350,000 Total Expenditures 11,380,000$ -$ -$ 11,380,000$ Funding Source(s)
Measure A 400,000 - - 400,000 Measure SST Fund 350,000 - - 350,000 Other Grants 10,630,000 - - 10,630,000 Total Expenditures 11,380,000$ -$ -$ 11,380,000$ 18301 Kingsdale Ave, Redondo Beach, CA 90278 | District 3 El Nido Park
Entradero Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
West Torrance Field Restoration 57,420 - - 57,420 Total Expenditures 57,420$ -$ -$ 57,420$ Funding Source(s)
Donation 57,420 - - 57,420 Total Expenditures 57,420$ -$ -$ 57,420$ 5500 Towers St, Torrance, CA 90503 | District 2
Entradero Park
Guenser Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Walking Path Replacement 500,000 12,670 34,489 452,841 Total Expenditures 500,000$ 12,670$ 34,489$ 452,841$ Funding Source(s)
Measure A 302,250 - - 302,250 Measure SST Fund 197,750 12,670 34,489 150,591 Total Expenditures 500,000$ 12,670$ 34,489$ 452,841$ Guenser Park
17800 Gramercy Pl, Torrance, CA 90504 | District 1
111

103

La Carretera Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Block Wall Replacement 149,800 149,800 - - Total Expenditures 149,800$ 149,800$ -$ -$ Funding Source(s)
2016 Certificate of Participation 149,800 149,800 - - Total Expenditures 149,800$ 149,800$ -$ -$ La Carretera Park
2040 186th St, Torrance, CA 90503 | District 1
Lago Seco Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 St, Torrance, CA 90505 | District 5
Lago Seco Park
Madrona Marsh Nature Center
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Replace Sump Pump 82,127 - 82,127 - Total Expenditures 82,127$ -$ 82,127$ -$ Funding Source(s)
Measure SST Fund 82,127 - 82,127 - Total Expenditures 82,127$ -$ 82,127$ -$ Madrona Marsh Nature Center
3201 Plaza del Amo, Torrance, CA 90503 | District 3
112

104

Paradise Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 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 St, Torrance, CA 90503 | District 2
Torrance Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 Ave, Torrance, CA 90501 | District 4
Walteria Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 St, Torrance, CA 90505 | District 6
113

105

Wilson Park
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Construct Pickleball Courts 1,526,119 77 88,229 1,437,813 Redevelopment of Building 8 902,865 40,847 311,793 550,224 Sports Field Conversion 342,000 - 136,579 205,421 Street Frontage Improvements 935,144 53,336 10,177 871,630 Total Expenditures 3,706,128$ 94,261$ 546,778$ 3,065,089$ Funding Source(s)
General Fund 2,307,476 40,924 400,022 1,866,529 Measure SST Fund 206,652 - - 206,652 Other Grants 342,000 - 136,579 205,421 Parks & Rec Open Space Fund 850,000 53,336 10,177 786,487 Total Expenditures 3,706,128$ 94,261$ 546,778$ 3,065,089$ 2200 Crenshaw Blvd, Torrance, CA 90501 | District 4
Wilson Park
114

106

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

2.8 million as of

December 31
, 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-Dec
Actuals
Life-To-Date
Balance
Bartlett Senior Center FAC0019 100, 600 52,878 42,413 5,310 Dee Hardison Sports Center FAC0030 300,000 - 14,245 285,755 Fire Station 1 FAC0010 1,824,223 402,339 151,593 1,270,292 Fire Station 4 FAC0013 85,618 85,618 - - Herma Tillim Senior Center FAC0023 970,663 - - 970,663 Russ Nolte Annex FAC0028 142,731 132,888 - 9,843 Torrance City Hall FAC0007 4,972,652 2,430,144 1,408,954 1,133,554 Torrance City Yard FAC0021 3,117,741 159,923 47,343 2,910,475 Torrance Cultural Arts Center FAC0009 554,616 182,377 81,516 290,723 Torrance Municipal Airport FAC0017 10,881,158 744,885 771,200 9,365,073 Torrance Police Department FAC0016 839,000 163,032 139,142 536,825 Torrance Regional Transit Center FAC0022 36,545,800 312,365 95,380 36,138,055 Torrance Southern Tarplant Preserve FAC0020 494,975 - - 494,975 Total Expenditures 60,829,778$

4,666,449$

2,751,786$

53,411,543$

Bartlett Senior Center
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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
115

107

Dee Hardison Sports Center
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Renovate Center Facilities 300,000 - 14,245 285,755 Total Expenditures 300,000$ -$ 14,245$ 285,755$ Funding Source(s)
Measure SST Fund 300,000 - 14,245 285,755 Total Expenditures 300,000$ -$ 14,245$ 285,755$ Dee Hardison Sports Center
2400 Jefferson St, Torrance, CA 90501 | District 4
Fire Station 1
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Alternate EOC 933,334 47,712 151,593 734,030 Renovate Fire Station 424,223 264,308 - 159,915 Replace Generator 466,666 90,319 - 376,347 Total Expenditures 1,824,223$ 402,339$ 151,593$ 1,270,292$ Funding Source(s)
2016 Certificate of Participation 264,308 264,308 - - Measure SST Fund 859,915 38,432 57,591 763,893 Other Grants 700,000 99,599 94,002 506,399 Total Expenditures 1,824,223$ 402,339$ 151,593$ 1,270,292$ Fire Station 1
1701 Crenshaw Blvd, Torrance, CA 90501 | District 3
Fire Station 4
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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
116

108

Herma Tillim Senior Center
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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
Russ Nolte Annex
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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
Torrance City Hall
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 331,255 - 64,164 267,091 Renovate Fire Prevention Building 186,535 107,631 28,631 50,274 Renovate GIS and Building & Safety Building 2,724,855 1,597,546 1,069,032 58,277 Renovate Main Building 375,021 219,488 104,384 51,149 Renovate West Annex Roofing and Interiors 675,636 224,552 21,059 430,025 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 31,946 113,200 84,854 Total Expenditures 4,972,652$ 2,430,144$ 1,408,954$ 1,133,554$ Funding Source(s)
2016 Certificate of Participation 2,954,632 1,597,817 1,347,896 8,919 General Fund 1,787,573 800,381 (52,142) 1,039,334 Measure SST Fund 230,448 31,946 113,200 85,302 Total Expenditures 4,972,652$ 2,430,144$ 1,408,954$ 1,133,554$ 3031 Torrance Blvd, Torrance, CA 90503 | District 3
Torrance City Hall
117

109

Torrance City Yard
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Fleet Offices Renovation 565,000 159,923 28,843 376,233 Install EV Chargers 175,000 - - 175,000 Motor and Mower Shop Exhaust Installation 150,000 - - 150,000 Remove Loading Dock 200,000 - - 200,000 427,741 - - 427,741 Replace Roof City Yard Services Building 1,600,000 - 18,500 1,581,500 Total Expenditures 3,117,741$ 159,923$ 47,343$ 2,910,475$ Funding Source(s)
AQMD 175,000 - - 175,000 DIF - General Services 351,787 - - 351,787 Fleet Services Capital Fund 600,000 159,923 28,843 411,233 General Fund 1,990,954 - 18,500 1,972,454 Total Expenditures 3,117,741$ 159,923$ 47,343$ 2,910,475$ Torrance City Yard
20500 Madrona Ave, Torrance, CA 90503 | District 3
Torrance Cultural Arts Center
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 - 81,516 18,484 Nakano Theater Roof Replacement 80,965 80,965 - - Replace Sewage Pump System 29,491 29,491 - - Total Expenditures 554,616$ 182,377$ 81,516$ 290,723$ Funding Source(s)
2016 Certificate of Participation 80,965 80,965 - - General Fund 444,159 71,920 81,516 290,723 Measure SST Fund 29,491 29,491 - - Total Expenditures 554,616$ 182,377$ 81,516$ 290,723$ Torrance Cultural Arts Center
3330 Civic Center Dr, Torrance, CA 90503 | District 3
118

110

Torrance Municipal Airport
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 34,208 529,252 General Aviation Center Roof Replacement 161,000 153,472 - 7,528 Implement Automated Weather Observing
System 998,000 1 82,228 671,915 143,857 Refurbish Roadways 29,940 17,900 - 12,040 Renovate Airport Hangars 874,780 132,085 23,928 718,768 Renovate Airport Traffic Control Tower 2,099,814 - 41,000 2,058,814 Taxiway Lighting Replacement 5,350,000 - 150 5,349,850 Total Expenditures 10,881,158$ 744, 885$ 771,200$ 9,365,073$ Funding Source(s)
Airport Capital Project Fund 10,881,158 744,885 771,200 9,365,073 Total Expenditures 10,881,158$ 744, 885$ 771,200$ 9,365,073$ Torrance Municipal Airport
3301 Airport Dr, Torrance, CA 90505 | District 6
Torrance Police Department
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Implement Jail Upgrades 100,000 - 68,536 31,464 Renovate Department Facilities 629,000 85,957 67,607 475,436 Replacement of HVAC Condenser 60,000 41,500 - 18,500 Uninterrupted Power Supply Replacement 50,000 35,575 3,000 11,425 Total Expenditures 839,000$ 163,032$ 139,142$ 536,825$ 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 100,000 - 68,536 31,464 Measure SST Fund 535,436 41,500 - 493,936 Total Expenditures 839,000$ 163,032$ 139,142$ 536,825$ Torrance Police Department
3300 Civic Center Dr N, Torrance, CA 90503 | District 3 119

111

Torrance Regional Transit Center
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
ADA Compliance Improvements 376,279 86,882 3,570 285,827 Construction of RTC Parking Structure 35,000,000 198,985 80,810 34,720,205 Tenant Space Enhancements 1,169,521 26,499 11,000 1,132,022 Total Expenditures 36,545,800$ 312,365$ 95,380$ 36,138,055$ Funding Source(s)
Other Grants 35,000,000 198,985 80,810 34,720,205 Transit Capital Fund 1,545,800 113,381 14,570 1,417,849 Total Expenditures 36,545,800$ 312,365$ 95,380$ 36,138,055$ Torrance Regional Transit Center
465 Crenshaw Blvd, Torrance, CA 90503 | District 3
Torrance Southern Tarplant
Preserve
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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
465 Crenshaw Blvd, Torrance, CA 90503 | District 3
120

112

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 $34,000 as of December 31, 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-Dec
Actuals
Life-To-Date
Balance
CBRS Private Cell Network CIT0001 170,000 - - 170,000 Katy Geissert Civic Center Library FAC0001 60,500 25,611 34,430 458 Nakano Theater Audio Visual Renovation FAC0009 100,000 - - 100,000 Toyota Meeting Hall Audio Visual Renovation FAC0009 85,000 - - 85,000 Total Expenditures 415,500$

25,611$

34,430$

355,458$

Katy Geissert Civic Center Library
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Replace Audio/Visual Equipment in Meeting
Rooms 60,500 25,611 34,430 458 Total Expenditures 60,500$ 25,611$ 34,430$ 458$ Funding Source(s)
General Fund 60,500 25,611 34,430 458 Total Expenditures 60,500$ 25,611$ 34,430$ 458$ Katy Geissert Civic Center Library
3031 Torrance Blvd, Torrance, CA 90503 | District 3
Torrance Cultural Arts Center
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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
121

113

Torrance Police Department
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 3 122

114

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
$6.5 million as of

December 31
, 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-Dec
Actuals
Life-To-Date
Balance
Anza Ave Rehabilitation (190th to Sepulveda) I 144 5,684,236 4, 855,566 151,548 677,122 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 1,191,403 10,813,841 Beach Cities Green Streets Project S 194 8,931,315 71,585 2,891,495 5,968,236 Bridge Preventative Maintenance Program I 124 129,628 - - 129,628 Cabrillo Ave Redesign I 198 1,515,640 - 524,877 990,763 Citywide Sidewalk Ramping/Grinding Program I 152 450,000 - 89,396 360,604 Citywide Traffic Engineering and Improvements T 190 2,113,020 1,335,635 38,727 738,659 Citywide Traffic Signal Improvements T 171 1,865,221 148,174 641,191 1,075,856 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 14,372 143,628 Fiber Network and Traffic Signal Optimization T 195 1,966,162 220,499 164,173 1,581,491 FY2018-21 Residential St Rehabilitation Program I 169 307,832 - 5,600 302,232 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 1,100,000 104,881 135,776 859,343 I-405 AT 182nd St/Crenshaw Blvd operational improvements T 155 5,132,293 1,631,831 247,818 3,252,644 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 177 119,732 119,732 - - Prairie Avenue Bridge Rehabilitations I 148 3,749,950 32,139 27,949 3,689,862 Residential Slurry Seal Program I 159 27,937,309 11,927,957 24,367 15,984,985 Sepulveda Soundwall Repair I 197 100,000 - - 100,000 Sidewalk Improvements for Disabled Accessibility I 135 5,108,985 3,319,374 247,425 1,542,186 Torrance School Safety and Accessibility Program I 188 22,879,295 3,584,284 56,748 19,238,263 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 118,997,807$ 42,805,384$

6,455,377$

69,737,046$

Anza Ave Rehabilitation (190th to Sepulveda) (I 144)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Donations 44,800 44,800 - - Gas Tax 2,102,580 1,338,997 151,548 612,036 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$ 151,548$ 677,122$ 123

115

Anza/Vista Montana/PCH Intersection Improvements (T 154) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure R Grants 2,900,000 2,477,822 - 422,178 Total Expenditures 2,900,000$ 2,477,822$ -$ 422,178$ Arterial Street Pavement Sealing Program (I 139)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Airport Capital Project Fund 46,000 40, 000 - 6,000 Gas Tax 1,069,000 101,780

3,544

963,676

Measure R Grant 6,085,960 1,670,648 925,141

3,490,171
Prop C Local Return 9,682,082 3,065,369 262,719

6,353,994
SB1 590,678

590,678

- -
Total Expenditures 17,473,720$ 5 ,468,475$ 1,191,403$ 10,813,841$ Beach Cities Green Streets Project (S 194)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Donations 1,202,369 - 72,002 1,130,367 General Fund 144,124

- - 144,124

Measure W 583,757

- 592

583,165

Measure W Grant 5,366,953 - 2,808,481 2,558,472 Other Grants 1,587,782 70,858 - 1,516,924 Sewer Capital Project Fund 46,330 727

10,420 35,184
Total Expenditures 8,931,315$ 71,585$ 2,891,495$ 5,968,236$ Bridge Preventative Maintenance Program (I 124)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Gas Tax 129,628 - - 129,628 Total Expenditures 129,628$ -$ -$ 129,628$ 124

116

Cabrillo Ave Redesign (I 198)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
General Fund 200,000 - 65,385 134,615 Other Grants 718,528

- 223,893

494,635

SB1 597,112

- 235,599

361,513

Total Expenditures 1,515,640$ -$ 524,877$ 990,763$ Citywide Sidewalk Ramping/Grinding Program (I 152)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure R Local Return 450,000 - 89,396 360,604 Total Expenditures 450,000$ -$ 89,396$ 360,604$ Citywide Traffic Engineering and Improvements (T 190)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 36,111 320,488

Total Expenditures 2,113,020$ 1,335,635$ 38,727$ 738,659$ Citywide Traffic Signal Improvements (T 171)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Gas Tax 379,702 88, 343 107,771 183,589 General Fund 10,000 - - 10,000 Measure R Local Return 186,455

11,113 10,322 165,020

Other Grants 726,330

29,854 486,476

210,000

Prop C Local Return 562,733

18,864 36,622 507,247

Total Expenditures 1,865,221$ 1 48,174$ 641,191$ 1,075,856$ 125

117

Crenshaw Blvd & PCH Intersection Improvements-Phase 1 (T 143) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
DIF - Transportation 578,000 - - 578,000 Measure R Grants 300,083

10,522 - 289,561

Total Expenditures 878,083$ 10,522$ -$ 867,561$ Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Gas Tax 830,265 739, 110 4,828 86,327 Measure M 609,000

572,836

9,544

26,620
Measure R Grants 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$ 14,372$ 143,628$ Crenshaw Blvd Intersection Imprv & 208th St Extension (T 157) Fiber Network and Traffic Signal Optimization (T 195)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
DIF - Transportation 599,495 83, 050 86,056 430,390 Measure M 1,050,000 123,376

70,697 855,927

Measure M Local Return 316,667

14,073 7,420

295,175

Total Expenditures 1,966,162$ 2 20,499$ 164,173$ 1,581,491$ FY2018-21 Residential St Rehabilitation Program (I 169) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure R Local Return 307,832 - 5,600 302,232 Total Expenditures 307,832$ -$ 5,600$ 302,232$ 126

118

Hawthorne Blvd Rehab (PCH to South City Limit) (T 045)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 Right-Turn Lanes at Lomita Blvd & 182nd St (T 196) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure M 1,000,000 104,881 135,776 759,343 Measure M Local Return 100,000

- - 100,000

Total Expenditures 1,100,000$ 104,881$ 135,776$ 859,343$ I-405 AT 182nd St/Crenshaw Blvd Operational Improvements (T 155) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure R Grants 5,132,293 1, 631,831 247,818 3,252,644 Total Expenditures 5,132,293$ 1, 631,831$ 247,818$ 3,252,644$ Intersection Improvements-Pacific Coast Hwy/Hawthorne Blvd (T 131) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure R Grants 1,856,022 1, 791,772 2,514 61,736 Total Expenditures 1,856,022$ 1, 791,772$ 2,514$ 61,736$ 127

119

Plaza del Amo at Western Ave (SR213) Mobility Enhancement (T 177) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure R Grants 119,732 119, 732 - - Total Expenditures 119,732$ 1 19,732$ -$ -$ Prairie Avenue Bridge Rehabilitations (I 148)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Gas Tax 332,410 14, 680 27,949 289,781 Other Grants 17,540 17,459 - 82

Prop C Local Return 3,400,000 - - 3,400,000 Total Expenditures 3,749,950$ 32 ,139$ 27,949$ 3,689,862$ Residential Slurry Seal Program (I 159)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 24,367 8,445,704 Total Expenditures 27,937,309$ 11 ,927,957$ 24,367$ 15,984,985$ Sepulveda Soundwall Repair (I 197)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Gas Tax 100,000 - - 100,000 Total Expenditures 100,000$ -$ -$ 100,000$ 128

120

Sidewalk Improvements for Disabled Accessibility (I 135) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
CDBG Fund 1,624,768 743,998 - 880,770 Donations 1,500 1,500 - - Measure M Local Return 3,150,000 2,467,278 247,425 435,297 Other Grants 123 - - 123 Prop A 263 - - 263 SB1 78,833 - - 78,833 TDA Article 3 Bicycle Fund 253,498 106,598 - 146,900 Total Expenditures 5,108,985$ 3,319,374$ 247,425$ 1,542,186$ Torrance School Safety and Accessibility Program (I 188) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure M 6,964,766 3, 082,302 7,980 3,874,484 Measure M Grant 10,372,609 - - 10,372,609 Measure M Local Return 5,541,920 501,982

48,768 4,991,170
Total Expenditures 22,879,295$ 3 ,584,284$ 56,748$ 19,238,263$ Transportation Management System Improvements (T 189)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure M 39,000 39, 000 - - Total Expenditures 39,000$ 39 ,000$ -$ -$ Transportation Open Space Corridor Multi-Use Trail (I 194) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure M 650,000 - - 650,000 Total Expenditures 650,000$ -$ -$ 650,000$ 129

121

Sewer/Water Utilities
This section summarizes the planned capital investment in the Sewer and Water utilities throughout the City. The City

spent
$108,000

as of

December 31
, 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-Dec
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 14,253 6,458,871 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 12,875 4,814,772 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 80,445 1,337,252 Total Expenditures 43,436,234$

18,099,208$

107,572$

25,229,454$

Airport Emergency Water Supply Line (I 199)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Airport Capital Project Fund 800,000 - - 800,000 Total Expenditures 800,000$ -$ -$ 800,000$ Citywide Sewer System Improvements (I 191)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
DIF-Sewer 9,000 - - 9,000 Sewer Capital Project Fund 6,464,705 581

14,253 6,449,871
Total Expenditures 6,473,705$ 581$ 14,253$ 6,458,871$ 130

122

Del Amo 5 Sewer Project (I 176)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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$ Dominguez Channel BMP Project (I 185)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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$ Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Sewer Capital Project Fund 479,266 21, 522 - 457,745 Total Expenditures 479,266$ 2 1,522$ -$ 457,745$ FY2018-21 Sewer Repairs (I 170)
High Pressure Zone Modifications (I 186)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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$ 131

123

Misc Water Main Repl for Developer & Street Rehab Projects (I 153) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Water Capital Fund 6,533,976 1, 706,329 12,875 4,814,772 Total Expenditures 6,533,976$ 1 ,706,329$ 12,875$ 4,814,772$ On-Site Recycled Water Retrofits (I 184)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Water Capital Fund 787,399 - - 787,399 Total Expenditures 787,399$ -$ -$ 787,399$ Paseo de la Playa Residential Undergrounding (I 175)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
General Fund 340,211 - - 340,211 Total Expenditures 340,211$ -$ -$ 340,211$ Sewer System Master Plan/Hydraulic Model (I 168)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Sewer Capital Project Fund 100,000 - - 100,000 Total Expenditures 100,000$ -$ -$ 100,000$ Undergrounding Overhd Util/Inst St Lights-PVBlvd bet. Torr/Sepul (I 156) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
DIF-Utility Underground 1,635,983 - - 1,635,983 Total Expenditures 1,635,983$ -$ -$ 1,635,983$ 132

124

Utility Undergrounding Administration (I 182)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
DIF-Utility Underground 154,485 - - 154,485 Total Expenditures 154,485$ -$ -$ 154,485$ Van Ness Ave Water Wells & Transmission Main (I 145)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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$ 1 6,219,371$ -$ 2,600,895$ Walteria Slope Reservoir Repair (I 181)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Water Capital Fund 1,497,346 79, 650 80,445 1,337,252 Total Expenditures 1,497,346$ 79 ,650$ 80,445$ 1,337,252$ 133

125

Storm Drains/Basins
This section summarizes the planned capital investment in the City’s storm drain and storm water basin infrastructure. The City

spent
$1.1 million

as of

December 31
, 2025. The following projects

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-Dec
Actuals
Life-To-Date
Balance
Citywide Storm Drain Replacement & Installation I 192 8, 111,925 985,760 243,030 6,883,135 North Torrance Well Field-Predesign I108 8,180,204 7,313,069 484,786 382,350 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 97,680 - 97,680 - Stormwater Basin Expansion Project I 179 721,192 391,880 128,054 201,258 Torrance Airport Storm Water Basin Project I 174 2,688,487 216,136 159,672 2,312,679 Total Expenditures 19,812,129$

8,906,844$

1,113,222$

9,792,063$

Citywide Storm Drain Replacement & Installation (I 192) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
DIF-Storm Drain 916,887 32, 921 34,784 849,182 Measure W 6,416,347 942,501

208,246

5,265,599
Other Grants 778,691

10,337 - 768,354

Total Expenditures 8,111,925$ 98 5,760$ 243,030$ 6,883,135$ North Torrance Well Field-Predesign (I 108)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Other Grants 647,168 647,104 - 64 Water Capital Fund 7,533,035 6,665,964 484,786

382,285

Total Expenditures 8,180,204$ 7,313,069$ 484,786$ 382,350$ 134

126

Paseo de la Playa Slope and Storm Drain Repair (I 180)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure R Local Return 12,642 - - 12,642 Total Expenditures 12,642$ -$ -$ 12,642$ Storm Water Retention Basin and Channel Perimeter Fencing (I 196) Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure W 97,680 - 97,680 - Total Expenditures 97,680$ -$ 97,680$ -$ Stormwater Basin Expansion Project (I 179)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Measure W 721,192 391, 880 128,054 201,258 Total Expenditures 721,192$ 3 91,880$ 128,054$ 201,258$ Torrance Airport Storm Water Basin Project (I 174)
Funding Source(s)
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
General Fund 4,673 - - 4,673 Measure W 517,677 216,136 155,220 146,321 Other Grants 2,000,000 - - 2,000,000 Sewer Capital Project Fund 166,138 - 4,452 161,686 Total Expenditures 2,688,487$ 216,136$ 159,672$ 2,312,679$ 135

127

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

$2.8

million

as of

December 31
, 2025.

Project Title
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
3D GIS Mapping/Cyclomedia OP49 160,000 - - 160,000 Accela Continuous Improvement Initatives OP50 166,164 19,665 89,398 57,102 AssetWorks Software Implementation OP50 121,000 3,033 27,712 90,255 Automated Meter Integration Upgrade OP83 6,600,000 4,723,224 1,590,360 286,415 Bollard Replacement at Wilson Park OP93 105,000 37,695 21,500 45,805 CA DOJ Monitor OP70 500,000 - - 500,000 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 54,556 478,964 Citywide Web Redesign OP50 530,000 249,780 26,596 253,625 Civic Center Evacuation Route and Signage OP53 62,500 31,250 5,218 26,032 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 36,941 70,088 97,593 Computer Aided Dispatch (CAD) Implementation OP50 2,335,659 - 1,680 2,333,979 Critical Incident Communications Consulting OP70 240,000 80,000 120,000 40,000 Customer Service Enhancement OP50 40,000 - - 40,000 DCH Airport Site Remediation Account OP95 200,000 200,000 - - Del Amo Fashion Center PCC OP70 193,350 - - 193,350 EA Properties Remediation OP95 2,500,000 2,434,788 65,212 - Electronic Content Management Enhancement OP50 102,861 14,975 - 87,886 Electronic Plan Submittal and Review OP49 500,000 29,016 119,146 351,838 Emergency Operations Center (EOC) Upgrade OP70 115,000 - 46,000 69,000 Emergency Slope Stabilization at 4812 Newton Street OP83 245,000 124,185 - 120,815 Enterpise Resource Planning System Replacement OP50 620,000 - 10,000 610,000 Enterprise Cashiering OP50 195,000 29,700 35,150 130,150 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 43,875 184,125 Hi-Shear OU-2 Remediation Account OP95 3,000,000 - - 3,000,000 Historic Preservation Plan Update OP49 78,500 - 5,520 72,980 Housing Element Compliance OP49 296,012 - 1,326 294,687 Library Needs Assessment OP93 97,000 - - 97,000 Median Beautification (Torrance Blvd at Western Ave) OP83 329,913 123,250 - 206,663 Microfilm Conversion OP70 175,000 - - 175,000 New Citizen Engagement for Web & Mobile OP50 95,000 - - 95,000 Park Lighting Replacement and Repair OP93 385,862 206,386 28,792 150,684 Police IT Remediation OP50 250,000 67,634 3,675 178,691 PROSECUTOR Software Implementation OP50 157,900 86,463 - 71,438 136

128

Individual Project Details

Project Title
Project
ID
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Public Safety Element Update / Environmental Justice OP49 245,000 112,860 71,018 61,122 Purchase of Light Pole Stock OP83 185,000 - 183,614 1,386 Refurbish Amenities at Sur La Brea Park OP93 20,898 20,898 - - Relocate Tarplant Preserve OP41 100,000 - - 100,000 Remediate Soil at RTC Site OP41 423,954 186,279 90,184 147,491 Replace Fence at 19301 - 19501 Prairie Avenue OP83 145,520 138,244 7,276 - 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 46,650 135,120 Street Name Sign Replacements OP83 172,278 - - 172,278 Supervisory Control & Data Acq (SCADA) Upgrades OP83 544,953 - 5,514 539,439 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 29,262,728$

10,233,682$

2,791,019$ 16,238,028$

Operating Projects - Airport
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 - 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
137

129

Operating Projects - City Manager
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 90,184 147,491 Upgrade Post Production and Asset
Management Systems 355,000 229,289 - 125,711 Total Expenditures 1,538,954$ 415,568$ 90,184$ 1,033,202$ Funding Source(s)
General Fund 1,183,954 186,279 90,184 907,491 PEG Fund Capital 355,000 229,289 - 125,711 Total Expenditures 1,538,954$ 415,568$ 90,184$ 1,033,202$ Operating Projects - City Manager
Operating Projects - Community
Development
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
3D GIS Mapping/Cyclomedia 160,000 - - 160,000 Electronic Plan Submittal and Review 500,000 29,016 119,146 351,838 Historic Preservation Plan Update 78,500 - 5,520 72,980 Housing Element Compliance 296,012 - 1,326 294,687 Public Safety Element Update / Environmental
Justice 245,000 1 12,860 71,018 61,122 Strategic Plan Survey & Community
Profile/Environmental Scan 200,000 1 8,230 46,650 135,120 Total Expenditures 1,479,512$ 160,106$ 243,660$ 1,075,746$ Funding Source(s)
General Fund 1,479,512 160,106 243,660 1,075,746 Total Expenditures 1,479,512$ 160,106$ 243,660$ 1,075,746$ Operating Projects - Community Development
138

130

Operating Projects - Community
Services
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Bollard Replacement at Wilson Park 105,000 37,695 21,500 45,805 Citywide Parks Master Plan 300,000 - - 300,000 Columbia Park Engagement and Concept
Design 184,782 177,054 7,728 - Library Needs Assessment 97,000 - - 97,000 Park Lighting Replacement and Repair 385,862 206,386 28,792 150,684 Refurbish Amenities at Sur La Brea Park 20,898 20,898 - - Resurface Playing Courts 875,000 - 8,800 866,200 Total Expenditures 1,968,542$ 442,033$ 66,820$ 1,459,689$ Funding Source(s)
General Fund 97,000 - - 97,000 Measure SST Fund 1,280,000 37,695 30,300 1,212,005 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 28,792 150,684 Total Expenditures 1,968,542$ 442,033$ 66,820$ 1,459,689$ Operating Projects - Community Services
Operating Projects - Fire
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Community AED Purchase 204,622 36,941 70,088 97,593 Total Expenditures 204,622$ 36,941$ 70,088$ 97,593$ Funding Source(s)
General Fund 204,622 36,941 70,088 97,593 Total Expenditures 204,622$ 36,941$ 70,088$ 97,593$ Operating Projects - Fire
139

131

Operating Projects - General
Services
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Civic Center Evacuation Route and Signage 62,500 31,250 5,218 26,032 EV Chargers For Park & Library Facilities 80,000 20,956 4,433 54,611 Total Expenditures 142,500$ 52,206$ 9,651$ 80,643$ Funding Source(s)
Fleet Services Capital Fund 50,000 - - 50,000 General Fund 92,500 52,206 9,651 30,643 Total Expenditures 142,500$ 52,206$ 9,651$ 80,643$ Operating Projects - General Services
Operating Projects - IT
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Accela Continuous Improvement Initatives 166,164 19,665 89,398 57,102 AssetWorks Software Implementation 121,000 3,033 27,712 90,255 Citywide Facility Reservation System 100,000 - - 100,000 Citywide Web Redesign 530,000 249,780 26,596 253,625 Computer Aided Dispatch (CAD)
Implementation 2,335,659 - 1,680 2,333,979 Customer Service Enhancement 40,000 - - 40,000 Electronic Content Management Enhancement 102,861 14,975 - 87,886 Enterpise Resource Planning System
Replacement 620,000 - 10,000 610,000 Enterprise Cashiering 195,000 29,700 35,150 130,150 Fire Modernization 300,000 - - 300,000 GIS System Upgrade 285,000 57,000 43,875 184,125 New Citizen Engagement for Web & Mobile 95,000 - - 95,000 Police IT Remediation 250,000 67,634 3,675 178,691 PROSECUTOR Software Implementation 157,900 86,463 - 71,438 Replacement of RightFax (OpenText) 15,000 - - 15,000 Total Expenditures 5,313,584$ 528,249$ 238,085$ 4,547,250$ Funding Source(s)
Asset Forfeiture-DOJ 1,142,955 - - 1,142,955 Fleet Services Capital Fund 19,000 1,300 17,438 262 General Fund 3,782,629 526,949 210,373 3,045,307 Measure SST Fund 350,000 - - 350,000 Transit Capital Fund 19,000 - 10,274 8,726 Total Expenditures 5,313,584$ 528,249$ 238,085$ 4,547,250$ Operating Projects - IT
140

132

Operating Projects - Police
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
CA DOJ Monitor 500,000 - - 500,000 Critical Incident Communications Consulting 240,000 80,000 120,000 40,000 Del Amo Fashion Center PCC 193,350 - - 193,350 Emergency Operations Center (EOC) Upgrade 115,000 - 46,000 69,000 Microfilm Conversion 175,000 - - 175,000 Use of Force Investigation 240,000 - - 240,000 Total Expenditures 1,463,350$ 80,000$ 166,000$ 1,217,350$ Funding Source(s)
General Fund 1,463,350 80,000 166,000 1,217,350 Total Expenditures 1,463,350$ 80,000$ 166,000$ 1,217,350$ Operating Projects - Police
Operating Projects - Public Works
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Automated Meter Integration Upgrade 6,600,000 4,723,224 1,590,360 286,415 Citywide Event Perimeter Protection Measures 150,000 - - 150,000 Citywide Tree Planting Program 854,000 320,480 54,556 478,964 Emergency Slope Stabilization at 4812 Newton
Street 245,000 124,185 - 120,815 Median Beautification (Torrance Blvd at
Western Ave) 329,913 123,250 - 206,663 Purchase of Light Pole Stock 185,000 - 183,614 1,386 Replace Fence at 19301 - 19501 Prairie Avenue 145,520 138,244 7,276 - 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 - 5,514 539,439 Water System Master Plan 500,000 - - 500,000 Total Expenditures 10,986,664$ 5,429,383$ 1,841,320$ 3,715,961$ Funding Source(s)
General Fund 1,227,711 385,679 190,890 651,142 Measure SST Fund 854,000 320,480 54,556 478,964 Sewer Capital Project Fund 1,260,000 - - 1,260,000 Water Capital Fund 7,644,953 4,723,224 1,595,874 1,325,854 Total Expenditures 10,986,664$ 5,429,383$ 1,841,320$ 3,715,961$ Operating Projects - Public Works
141

133

Operating Projects - Transit
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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
142

134

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
$ 514,000

as of

December 31
, 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-Dec
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 - 314,214 10,786 Downtown Parking Structure OTR0001 125,000 - - 125,000 Refurbish Amenities and Signs OTR0001 654,208 237,586 199,893 216,729 Upgrade Downtown Torrance Lights to LED OTR0001 500,000 143,819 - 356,181 Total Expenditures 4,734,125$

455,405$

514,107$

3,764,613$

Downtown Torrance
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 654,208 237,586 199,893 216,729 Upgrade Downtown Torrance Lights to LED 500,000 143,819 - 356,181 Total Expenditures 1,353,208$ 455,405$ 199,893$ 697,910$ Funding Source(s)
General Fund 1,353,208 455,405 199,893 697,910 Total Expenditures 1,353,208$ 455,405$ 199,893$ 697,910$ Downtown Torrance
Torrance Municipal Airport
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
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 Dr, Torrance, CA 90505 | District 6
143

135

Other Infrastructure
Life-to-Date
Budget
Prior Years
Actuals
July-Dec
Actuals
Life-To-Date
Balance
Digital Sign Modernization 325,000 - 314,214 10,786 Total Expenditures 325,000$ -$ 314,214$ 10,786$ Funding Source(s)
General Fund 125,000 - 116,745 8,255 PEG Fund Capital 200,000 - 197,469 2,531 Total Expenditures 325,000$ -$ 314,214$ 10,786$ Other Infrastructure
144

Finance and Governmental Operations Council CommitteeMarch 12, 2026

Finance and Governmental Operations Council Committee
March 12, 2026