PROPOSED FISCAL YEAR 2026-27
OPERATING BUDGET &
CAPITAL IMPROVEMENT PLAN
9B
PUBLIC HEARING PROMOTIONAL EFFORTS
Promoted on hero banner, digital
signs, and on social media
(Instagram, YouTube).
Implemented a four-part series
leading up to the public hearings
97% of the interactions are
positive (source: Zencity;
Instagram April 14 and April 28
th)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 2 BUDGET REFLECTION
• Issued 2020 Lease Revenue Bonds
• Save $9.5-12.9M annually; $172M over 24 years
• Through current fiscal year = $60.9M
• Issued 2021 Lease Revenue Bonds
• Created one-time savings of $4M
• Implemented Emergency Transport Program
• Net benefit of $4M annually
• Provides feeder for Firefighter recruitments
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Pandemic Recovery
3 BUDGET REFLECTION
• Implemented Enterprise Fund Franchise Fees
• Generates $1.5M annually
• Passage of Measure SST
• Generates $27M annually
• Has generated $46.2M for public safety; $16.4M for capital; $95.6M in total
• Bond Rating
• Improved from AA “negative outlook” to AA “stable outlook” • Implementing AAA-rated strategies
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Pandemic Recovery
4 BUDGET REFLECTION
• Multi-year labor agreements
• Invested in workforce to stabilize vacancies
• Improved vacancy rate from ~300 to ~190
• Police Department Recruitment & Retention Program
• Implemented Business License Compliance Services
• Generated over $900k since implementation
• Yields $181k in recurring revenues
• Secured Prop 218 Rate Increases
• Sanitation (Jul 2023), Sewer (Jan 2023) & Water (Jan 2025) FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Pandemic Recovery
5 BUDGET REFLECTION
• Implemented Community Facilities District
• Provides recurring revenue stream for development impacts • Capital Improvement Plan Prioritization
• Invested over $25M in General Fund/SST Capital
• Committed over $70M to parks and facilities
• Pension Prefunding Trust Fund
• Established and built balance to $40.9M
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Pandemic Recovery
6 BUDGET REFLECTION
• Economic Anomaly Reserve Fund
• Built balance to $68.9M
• Citywide Cash/Investment Balance
• October 2020: $87.2M
• February 2026: $392.7M
• Financial Key Performance Indicators
• FY2024-25: six in green category (up from 2)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Pandemic Recovery
7 • Fully funded IT Asset Replacement Fund
• Recently facilitated $1.5M purchase of ToughBooks for Police • Fully funded all Vehicle Replacement Funds
• Replaced ~270 vehicles citywide; $51.0 M in total (exc Transit) • Sanitation: $8.8M
• Sewer: $2.6M
• Water: $1.3M
• Fleet: $38.3M
BUDGET REFLECTION
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Pandemic Recovery
8 BUDGET OUTLOOK
• Staff Outlook: Cautious
• Structurally balanced budget over 10-year projection
• Strategic use of pension trust fund to smooth rising pension payments • General Fund Economic Anomaly Reserve in compliance with Fiscal Policy • Balance increasing during 10-year projection
• Revenue Trends remains in yellow category
• Conservative revenue projections; early signs of Sales Tax stabilizing • Continued strategic investment in critical infrastructure FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Economic Sentiment
9 BUDGET OUTLOOK
• Federal Tariffs
• Geopolitical uncertainty
• Stock Market valuations & volatility
• Persistent inflation
• Private sectors layoffs & bankruptcies
• Nearby cities experiencing budget deficits
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Economic Sentiment
10 BUDGET OUTLOOK
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 11 Impacts FY24-25+ contributions
62,000,000
64,000,000
66,000,000
68,000,000
70,000,000
72,000,000
74,000,000
76,000,000
78,000,000
80,000,000
82,000,000
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 Total Pension Costs - CalPERS & Debt Service
BUDGET OUTLOOK
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 12 1. Impact of FY21-22 loss
2. Pension Trust Smoothing
NOVEMBER/
DECEMBER
JANUARY/
FEBRUARY
MARCH/
APRIL
MAY/
JUNE
• Develop and
distribute budget
calendar to City
departments
• Council provides
direction on budget
priorities
• Elicit stakeholder
feedback
• Meet with
departments to
discuss operating &
capital budget
needs
• Detailed review of
staffing levels
• Meet with
departments to
discuss revenue
projections
• Draft proposed
operating budget
and capital
improvement plan
• Conduct public
hearings
• Stakeholder
participation
• City Council formally
adopts budget
appropriations for
the coming fiscal
year via resolutions
BUDGET DEVELOPMENT PROCESS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 13 BUDGET DEVELOPMENT PROCESS
Finance & Governmental Operations Committee
• First Quarter Budget Update – December 2025
• Mid-Year Budget Update – March 2026
Financial Framework
• Strategic Plan
• Budget Priorities
• Department & Financial Key Performance Indicators
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 14 FINANCIAL KEY PERFORMANCE INDICATORS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 15 Financial Key Performance Indicators FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Revenue Trends ● ● ● ● ●
Net True Operating Surplus/(Deficit) ● ● ● ● ●
General Fund Unrestricted Fund Balance ● ● ● ● ●
Liquidity ● ● ● ● ●
Pension Obligations ● ● ● ● ●
Debt Burden ● ● ● ● ●
Pension Funded Status ● ● ● ● ●
OPEB Funded Status ● ● ● ● ●
Self Insurance Funded Status ● ● ● ● ●
Capital Asset Condition ● ● ● ● ● 1
2 4.4%
5.6%
14.3%
1.4%
0.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
FY20-21 FY21-22 FY22-23 FY23-24 FY24-25General Fund Percent Change - Net Operating Revenues Percent Change from prior year Goal High risk
Financial Key Performance Indicators – Revenue Trends
16FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET • Self-Insurance Fund
• Labor Trends
• Aging Infrastructure and City Facilities/Parks
• Pension/OPEB Benefits Liability Management
CITYWIDE AREAS OF FOCUS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 17 ECONOMIC INDICATORS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET Federal Funds Rate
Consumer Price Index
Real Gross Domestic Product
Labor Market Trends
18 BUDGET
FRAMEWORK
● Strong development continues
● Responsible Use of AI
● Community Engagement
● Homelessness
● Police & DOJ Collaborative Reform
● Succession Planning
● Youth Supervision Policy
19 FY26-27
Operating Budget &
Capital Improvement
Plan
Budget Efficiencies & Changes
• Centralize Legal Services Budget
• Eliminate Capital Transfers (Prop Funds)
• Airport Non-aeronautical accounted in
General Fund
• Internal rent charges
• Airport Fund
• Transit Fund – Temporary Lot
BUDGET
FRAMEWORK
FY26-27
Operating Budget &
Capital Improvement
Plan
20 • Economic Anomaly Reserve Policy
• Maintain a balance of 20+%; strive for 30%
• Proposed Budget: +$1M contribution
• Based on FY26-27 budget: $69.9M = 21.6%
• General Fund Capital Contribution Policy
• Recommend NEW Policy to City Council
• Based on state/national comparison (AAA-rated cities) • 5% (strive to 7.5%) of City’s General Fund Op Fund Revenue Budget • Proposed Budget: $11.6M contribution = 3.6%
• Achieve compliance in year 9 of 10-year projection
Budget Framework
21FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET CITY’S FUND CLASSIFICATIONS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET General Fund
Nonmajor Governmental Funds
Enterprise Funds
Internal Service Funds
Fiduciary Funds
22 General Fund Structure – All Funds
Operating & SST Funds
• Function as City’s checking accounts.
• Fund daily operations of the City.
• Net result of activity affects unassigned
fund balance
Restricted & Assigned Funds
• Function as City’s savings accounts, sets
funding aside for specified purpose
• Funding set aside in any given year for
future use to balance
Operating
Measure SST
Restricted
Assigned
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 23 23
CITYWIDE REVENUES BY FUND CLASSIFICATION
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 24 GENERAL FUND REVENUES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 25 Classification
FY 2025-26
Amended
Budget
FY 2026-27
Proposed
Budget
FY 2026-27
Increase/
(Decrease)
FY 2026-27
Percent
Change
Taxes 203,810,470 205,535,072 1,724,602 0.8% Licenses, Fees and Permits 18,865,230 19,457,778 592,548 3.1% Fines, Forfeitures and Penalties 2,115,090 2,045,000 (70,090) -3.3% Use of Money and Property 9,014,403 29,165,251 20,150,848 223.5% Intergovernmental 435,630 455,500 19,870 4.6% Charges for Services 25,928,210 27,932,106 2,003,896 7.7% Other Revenues 81,310 1,713,000 1,631,690 2006.8% Operating Transfers In 43,259,345 35,030,095 (8,229,250) -19.0% Other Financing Sources - - - 0.0% Total Revenues 303,509,688$ 321,333,802$ 17,824,114$ 5.9% 2 1
3 GENERAL FUND TAX REVENUES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 26 Classification
FY 2025-26
Amended
Budget
FY 2026-27
Proposed
Budget
FY 2026-27
Increase/
(Decrease)
FY 2026-27
Percent
Change
Sales and Use Tax 61,701,050 63,199,620 1,498,570 2.4% Property Tax 72,011,450 74,152,690 2,141,240 3.0% Utility Users Tax 43,313,300 41,308,282 (2,005,018) -4.6% Business License Tax 11,644,650 11,849,480 204,830 1.8% Occupancy Tax 13,305,020 13,500,000 194,980 1.5% Construction Tax 1,830,000 1,520,000 (310,000) -16.9% Oil Severance Tax 5,000 5,000 - 0.0% Total Revenues 203,810,470$ 205,535,072$ 1,724,602$ 0.8% 1 2
General Fund Revenue Trends
27 Average Revenue Growth: 6%/yr*
*: CEPPT Draw of $12M (net=5%)
$63,634,583
$59,199,636
$63,199,620
$59,630,945
$74,152,690
$37,379,435
$44,115,724
$41,308,282
$35,000,000
$40,000,000
$45,000,000
$50,000,000
$55,000,000
$60,000,000
$65,000,000
$70,000,000
$75,000,000
FY2021-22 Actual FY2022-23 Actual FY2023-24 Actual FY2024-25 Actual FY2025-26 Amended Budget
FY2026-27 Projected
Budget
Sales and Use Tax Property Tax Utility Users Tax
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET
CITYWIDE EXPENDITURES BY FUND CLASSIFICATION
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 28 General Fund Expenditure Trends
29 Average Expenditure Growth: 8.9%/yr
177,439,089
184,566,489
206,068,144
228,763,134
243,087,959
46,554,334
81,246,516
80,245,843
223,993,423
261,591,949
271,219,954
293,190,323 311,565,816
323,333,802
0 50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
2021-22 Actual 2022-23 Actual 2023-24 Actual June 2024-25 Actual
2025-26 Amended
Budget
2026-27 Budget
Salaries Total Non-Wage Total Total Expenditures
1 2
3 ● GF-Operating Fund: -$2.0M
● GF-Measure SST: $0.0M
● GF-Restricted: -$7.6M
● GF-Assigned: +$1.9M
● Airport Fund: $0.0M
● Sanitation Fund: +$1.3M
● Sewer Fund: +$3.5M
● Transit Fund: -$6.0M
● Water Fund: +$8.6M
● Fleet Fund: +$2.5M
● Self-Insurance Fund: +$0.1M
CITYWIDE
SURPLUS/(DEFICIT)
FY26-27
Operating Budget &
Capital Improvement
Plan
30 CITYWIDE PERSONNEL SUMMARY BY DEPARTMENT
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 31 Department
FY 2025-26
Amended
Budget
FY 2026-27
Proposed
Budget
FY 2026-27
Increase/
(Decrease)
FY 2026-27
Expenditure/
(Savings)
City Attorney 15.00 15.00 - - City Clerk 9.00 9.00 - - City Council 7.00 7.00 - - City Manager 46.25 46.25 - 32,754 City Treasurer 2.00 2.00 - - Community Development 77.00 77.00 - - Community Services 207.18 208.18 1.00 174,811 Finance 38.75 38.75 - 8,918 Fire 203.00 203.00 - - General Services 116.25 115.25 (1.00) (107,722) Human Resources 16.00 16.00 - - Information Technology 44.00 42.00 (2.00) (143,670) Police 359.00 359.00 - - Public Works 212.00 212.00 - 19,352 Transit 205.30 198.10 (7.20) (910,004) Total FTE Count 1,557.73 1,548.53 (9.20) (925,561)$ Targeted staffing
adjustments based on
revenue/expenditure
trends
CITY MANAGER
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Conversions
• -5.0 FTE Management Associate/Sr. Management Associate to +3.0 FTE Sr.
Management Associate and +2.0 FTE Management Associate
Staffing Level Changes: Net +0.00 FTE
32 COMMUNITY SERVICES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Additions
• +1.0 FTE Landscape Architect
Staffing Level Changes: Net +1.00 FTE
33 FINANCE
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Conversions
• -5.0 FTE Accountant and -2.0 FTE Senior Accountant to +4.0 FTE Accountant/Sr. Accountant and +1.0 FTE Revenue Supervisor and +2.0 FTE Auditor/Sr. Auditor
Staffing Level Changes: Net +0.00 FTE
34 GENERAL SERVICES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Reductions
• -1.0 FTE Accounting Technician
Staffing Level Changes: Net -1.00 FTE
35 INFORMATION TECHNOLOGY
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Conversions
• -1.0 FTE Intern II and -1.0 FTE Information Technology Analyst and -1.0 FTE Information Technology Specialist to +1.0 FTE GIS Administrator NOTE: Council approved addition of Deputy IT Director/CISO (April 7, 2026) and the above-mentioned positions reflect the balance of the program modification Staffing Level Changes: Net -2.0 FTE
36 PUBLIC WORKS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Conversions
• -1.0 FTE Associate Engineer to +1.0 FTE Traffic Engineer Staffing Level Changes: Net +0.00 FTE
37 Reductions
• -0.2 FTE Customer Service Rep
• -1.0 FTE Intern II
• -1.0 FTE Transit Marketing Specialist
• -2.0 FTE Transit Supervisor
• -1.0 FTE Transit Mechanic
• -2.0 FTE Transit Senior Mechanic
TRANSIT
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Staffing Level Changes: Net -7.20 FTE
38 • City Manager: +$250k for land lease
audits
• City Treasurer: +$25k for third-party
oversight
• Fire: +$475k for enhanced PP-GEMT
program (offset by $800k in revenue)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET
PROPOSED CITYWIDE NON-WAGE SUMMARY
General Fund Non-Wage Change Summary
• Information Technology:
• +$30k for managed print
services
• +$501k for new CAD system
• Public Works: +$500k for citywide
sidewalk ramping/grinding
39 • Section 8: -$430k due to discontinuation
of EHV program
• Sanitation: +$100k for route review/GPS
software
• Transit: -$1.7M for Connect Torrance
funded through non-operating grant
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET
PROPOSED CITYWIDE NON-WAGE SUMMARY
Non-General Fund Non-Wage Change Summary
40 GENERAL FUND-OPERATING FUND PROGRAM SUBSIDIES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 41 41
Funds
FY 2024-25
Actual
FY 2025-26
Amended
Budget
FY 2026-27
Proposed
Budget
Armed Forces Parade 327,653 323,890 323,890 Artesia Lights 25,342 36,000 36,000 City Yard Open House 21,843 - 20,000 Community Clean up 3,120 10,000 10,000 Discover Torrance TBID & Downtown Torrance BID 45,000 80,000 80,000 Fourth of July Celebration 41,526 50,000 58,000 Friendship City Activities 17,230 70,000 70,000 Sister City Activities 5,045 10,000 10,000 TOCA Subsidy 74,400 74,400 74,400 Tournament of Roses Float 125,211 237,000 237,000 Youth in Government Activities 2,414 3,200 3,200 Total External Subsidies 688,784$ 894,490$ 922,490$ Highlights
• Over $1B in assets; over 50% depreciated
• Continued need to defer projects due to
lack of sufficient funding
• Expanded General Fund contribution to
fund Facilities & Parks
• Implementation of General Fund Capital
Contribution Policy
CAPITAL
IMPROVEMENT PLAN
Proposed FY2026-27
Capital Budget
42 • Seismic concerns with age of
buildings
• Building Index Study identified
$205M as minimum investment in
next 10 years ($20.5M annually);
not including many park assets
• Parks Master Plan to expand upon
the identified need
• Grants/Debt critical areas of
exploration
CAPITAL
IMPROVEMENT PLAN
Proposed FY2026-27
Capital Budget
43 CAPITAL IMPROVEMENT PLAN SUMMARY
• 100+ assets surveyed in Building Index Study
• Additional 47 playgrounds at 29 of our 33 parks not quantified in survey • 3 of these playgrounds are fully rubberized
• Average age of facilities
• Critical: 1956
• Poor: 1969
• Fair: 1974
Parks & Facilities
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 44 CAPITAL IMPROVEMENT PLAN SUMMARY
7 48
56 4
A: Good B: Fair C: Poor D: Critical
Facilities Asset Condition
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 45 CAPITAL IMPROVEMENT PLAN SUMMARY
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 46 Capital Project Type
Life-to-Date
Budget
Life-To-Date
Balance
FY 2026-27
Proposed
Budget
FY 2027-28
Projected
Budget
FY 2028-29
Projected
Budget
FY 2029-30
Projected
Budget
FY 2030-31
Projected
Budget
Parks 39,168,471 35,528,918 227,031 13,760,000 450,000 8,360,000 4,909,621 Facilities 51,763,718 39,009,234 9,160,308 3,120,210 7,076,125 3,423,298 7,121,855 IT Infrastructure 170,000 170,000 1,281,000 300,000 300,000 445,000 300,000 Public Right of Way 113,193,840 54,687,908 20,398,060 68,721,600 14,869,333 15,264,333 15,264,333 Sewer/Water Utilities 43,074,502 24,699,217 6,207,745 20,543,306 5,850,000 4,650,000 1,650,000 Storm Drain/Basins 18,462,939 8,877,814 9,693,000 6,489,402 1,611,000 1,355,000 1,355,000 Operating Project 28,315,983 9,645,798 11,077,000 4,592,000 2,015,000 1,565,000 1,180,000 Other 4,335,125 3,357,348 1,623,819 560,000 550,000 250,000 250,000 Contingency - - 1,813,618 2,236,200 1,441,947 1,674,065 1,406,148 Total Expenditures 298,484,578$ 175,976,235$ 61,481,580$ 120,322,718$ 34,163,405$ 36,986,696$ 33,436,957$ 1 2
3 CAPITAL IMPROVEMENT PLAN – PARKS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 47 Project Location
Project
ID
Life-to-Date
Budget
Life-To-Date
Balance
FY 2026-27
Proposed
Budget
FY 2027-28
Projected
Budget
FY 2028-29
Projected
Budget
FY 2029-30
Projected
Budget
FY 2030-31
Projected
Budget
Alta Loma Park PRK0001 945,000 945,000 - - - - - Columbia Park PRK0002 10,060,000 9,398,405 702,075 6,000,000 - 5,000,000 - El Nido Park PRK0007 11,380,000 11,153,580 500,000 7,760,000 - - - El Retiro Park PRK0009 80,000 80,000 - - - - - Guenser Park PRK0012 580,000 502,025 220,000 - - - - La Romeria Park PRK0016 80,000 80,000 - - - - - Madrona Marsh Nature Center PRK0034 - - - - - - 1,500,000 McMaster Park PRK0019 150,000 150,000 - - - - - Paradise Park PRK0022 9,678,903 9,391,675 - - - - - Pueblo Park PRK0024 - - - - - - 264,621 Sea-Aire Park PRK0026 - - - - 100,000 1,750,000 - Sunnyglen Park PRK0028 - - - - - 110,000 - Sur La Brea Park PRK0029 80,000 80,000 - - - - - Torrance Park PRK0030 348,440 348,440 - - 350,000 - 3,000,000 Victor Park PRK0031 - - - - - - 145,000 Walteria Park PRK0032 1,780,000 1,780,000 (1,700,000) - - 1,500,000 - Wilson Park PRK0033 4,006,128 1,619,793 504,955 - - - - Total Expenditures 39,168,471$ 35,528,918$ 227,031$ 13,760,000$ 450,000$ 8,360,000$ 4,909,621$ 1 2
3 4
CAPITAL IMPROVEMENT PLAN – FACILITIES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 48 Project Location
Project
ID
Life-to-Date
Budget
Life-To-Date
Balance
FY 2026-27
Proposed
Budget
FY 2027-28
Projected
Budget
FY 2028-29
Projected
Budget
FY 2029-30
Projected
Budget
FY 2030-31
Projected
Budget
Attic Teen Center FAC0025 - - - - - - 806,470 Bartlett Senior Center FAC0019 - - - - - - 917,860 Dee Hardison Sports Center FAC0030 300,000 177,676 - - - - - Fire Station 1 FAC0010 1,783,686 575,044 250,000 - - - - Fire Station 2 FAC0011 - - 40,000 - 3,061,913 - - Fire Station 3 FAC0012 - - - 250,000 - - - Fire Station 5 FAC0014 - - - - 2,120,742 - - Fire Station 6 FAC0015 - - - - 250,000 - - Herma Tillim Senior Center FAC0023 - - - - - - 933,655 Katy Geissert Civic Center Library FAC0001 - - - - - - 1,000,000 Southeast Library FAC0005 - - - - - 1,316,118 - Torrance City Hall FAC0007 - - 750,000 - 870,950 - - Torrance City Yard FAC0021 3,117,741 923,187 1,512,768 1,500,000 - 275,000 2,750,000 Torrance Cultural Arts Center FAC0009 185,000 11,049 - - - - - Torrance Municipal Airport FAC0017 9,386,696 1,927,953 4,957,540 1,370,210 772,520 - - Torrance Police Department FAC0016 444,794 62,401 150,000 - - 1,039,210 713,870 Torrance Regional Transit Center FAC0022 36,545,800 35,331,924 1,500,000 - - - - Torrance Theatre FAC0029 - - - - - 792,970 - Total Expenditures 51,763,718$ 39,009,234$ 9,160,308$ 3,120,210$ 7,076,125$ 3,423,298$ 7,121,855$ 1 2
3 4
CAPITAL IMPROVEMENT PLAN SUMMARY
Madrona Ave Median Project (Carson to Opal)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 49 CAPITAL IMPROVEMENT PLAN SUMMARY
Hawthorne Blvd Median Project (Del Amo to Halison)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 50 CAPITAL IMPROVEMENT PLAN SUMMARY
Cabrillo Ave Median Project
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 51 CAPITAL IMPROVEMENT PLAN SUMMARY
Ballast Rock Installation: Phase 2
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 52 CAPITAL IMPROVEMENT PLAN SUMMARY
Downtown Signage
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 53 CAPITAL IMPROVEMENT PLAN SUMMARY
City Hall Renovation – Building & Safety
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 54 CAPITAL IMPROVEMENT PLAN SUMMARY
City Hall Renovation – Information Technology
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 55 CAPITAL IMPROVEMENT PLAN SUMMARY
Fire Station 1 – Department EOC
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 56 CAPITAL IMPROVEMENT PLAN SUMMARY
Hickory Park Restroom Renovation
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 57 CAPITAL IMPROVEMENT PLAN SUMMARY
Airport Restroom Renovation
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 58 CAPITAL IMPROVEMENT PLAN SUMMARY
Digital Signage
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 59 CAPITAL IMPROVEMENT PLAN SUMMARY
Torrance School Safety & Accessibility Program (Fern/Seaside) FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 60 CAPITAL IMPROVEMENT PLAN SUMMARY
New Signal: Lomita/Madison
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 61 CAPITAL IMPROVEMENT PLAN SUMMARY
City Hall Landscaping
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 62 CAPITAL IMPROVEMENT PLAN SUMMARY
Southeast Library Landscaping
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET 63 General Fund-All Funds (thousands) FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 FY35-36 Revenues 359,825 363,845 384,197 389,472 394,205 400,745 410,155 421,545 438,950 456,321 Expenses 367,564 382,053 394,925 395,683 395,736 396,324 403,624 411,737 425,487 438,711 Revenues Less Expenditures (7,739)$ (18,208)$ (10,729)$ (6,211)$ (1,531)$ 4,420$ 6,531$ 9,808$ 13,463$ 17,610$ Fund Balance Impacts
General Fund Operating Fund (2,000) (9,810) - - - - - - - - General Fund SST Fund - (2,250) - - - - - - - - General Fund Restricted Fund (7,595) (1,804) (12,065) (7,853) (2,993) 452 1,843 3,758 8,016 11,795 General Fund Assigned Fund 1,857 (4,344) 1,337 1,643 1,462 3,968 4,688 6,050 5,447 5,814 Nonspendable 430 430 430 430 430 430 430 430 430 430 Restricted 35,624 33,821 21,755 13,902 10,909 11,361 13,204 16,962 24,978 36,774 Assigned 83,766 79,422 80,758 82,401 83,863 87,831 92,519 98,569 104,016 109,830 Unassigned 23,681 11,621 11,621 11,621 11,621 11,621 11,621 11,621 11,621 11,621 Restricted - CEPPT Balance 31,750 29,640 17,235 9,007 5,605 5,609 6,964 10,266 18,002 29,670 Assigned - Reserve Balance 69,906 70,906 71,906 72,906 74,906 77,906 81,906 86,906 91,906 96,906 Assigned - Reserve Ratio 21.6% 21.2% 20.9% 20.9% 21.2% 21.7% 22.2% 23.0% 23.5% 24.0% Unrestricted Ratio 33.2% 27.2% 26.8% 26.9% 27.0% 27.7% 28.3% 29.1% 29.6% 30.1% General Fund Expenditures – Overall Outlook
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4 FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET
BUDGET PRIORITIES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET
1. Develop a balanced budget including 10-year projection compliant with City’s financial policies.
2. Identify strategies and new revenue sources to resolve identified Areas of Focus.
3. Attract and retain a highly skilled workforce to deliver critical city services.
4. Prioritize investments in parks, buildings, and public right of way.
5. Expand business attraction and overall economic development efforts.
6. Explore alternative methods that improve cost effectiveness and service delivery of city operations.
65 BUDGET PRIORITIES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET
7. Expand investment in technology to proactively address cybersecurity resiliency and improve customer experience.
8. Plan for expanded use of alternative fuel vehicles compliant with recent California Air Resources Board (CARB) guidance.
9. Determine resources needed to implement impacts of Park Services Operational Assessment.
10. Complete Library Needs Assessment to inform future programming and service delivery.
11. Identify resources to continue implementation of collaborative reform effort with the California Department of Justice.
66 NEXT STEPS/ACTIONS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026- 27 OPERATING BUDGET May 5
Provide feedback on
Proposed Budget
Provide feedback on
Proposed Budget
1. Adopted FY2026-27 Operating Budget & Capital Improvement Plan
2. Approve Appropriations Resolutions
June 9
May 19
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