Torrance City Council
June 9, 2026

187

Residential Slurry Seal Program
Funding Source(s)
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
Gas Tax 4,535,000 985,000 600,000 100,000 100,000 100,000 100,000 General Fund 627,627 335,706 300,000 300,000 300,000 300,000 300,000 Measure M Local Return 4,211,712 2,906,654 1,300,000 1,900,000 2,100,000 1,900,000 1,900,000 Measure R Local Return 3,020,000 3,020,000 1,782,232 1,500,000 1,500,000 1,500,000 1,500,000 SB1 15,542,970 8,441,966 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000 Total Expenditures 27,937,309$ 15,689,326$ 7,582,232$ 7,400,000$ 7,600,000$ 7,400,000$ 7,400,000$ Sepulveda Soundwall Repair
Funding Source(s)
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
Gas Tax 100,000 100,000 - - - - - Total Expenditures 100,000$ 100,000$ -$ -$ -$ -$ -$ Sidewalk Improvements for Disabled Accessibility
Funding Source(s)
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
CDBG Fund 1,624,768 409,615 683, 333 683,333 683,333 683,333 683,333 Donations 1,500 - - - - - - Measure M Local Return 3,150,000 62,199 450, 000 450,000 450,000 450,000 450,000 Other Grants 123 123 - - - - - Prop A Local Return 263 263 ( 263) - - - - SB1 78,833 78,833 ( 78,833) - - - - TDA Article 3 Bicycle Fund 253,498 - 114, 000 106,000 106,000 106,000 106,000 Total Expenditures 5,108,985$ 551,034$ 1, 168,237$ 1,239,333$ 1,239,333$ 1,239,333$ 1,239,333$ Torrance School Safety and Accessibility Program
Funding Source(s)
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
Measure M Grant 17,337,375 13,235,361 - 8,100,000 - - - Measure M Local Return 5,541,920 4,715,881 900,000 - - - - Total Expenditures 22,879,295$ 17,951,242$ 900,000$ 8,100,000$ -$ -$ -$ Transportation Open Space Corridor Multi-Use Trail
Funding Source(s)
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
Other Grants 650,000 650,000 - - - - - Total Expenditures 650,000$ 650,000$ -$ -$ -$ -$ -$ 200

188
Sewer/Water Utilities
This section summarizes the planned capital
investment in the Sewer and Water utilities
throughout the

C
ity. The City is planning to invest
$38.9 million over the next

f
ive years 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
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
Airport Emergency Water Supply Line I 199 800,000 800,000 - 500,000 - - - Citywide Sewer System Improvements I 191 6,931,450 6,908,506 1,857,745 1,400,000 1,400,000 1,400,000 1,400,000 Del Amo 5 Sewer Project I 176 2,314,409 2,314,409 - - - - - Dominguez Channel BMP Project I 185 503,821 503,821 - 5,900,000 - - - High Pressure Zone Modifications I 186 2,995,367 2,923,612 1,000,000 1,000,000 - - - La Carretera Park PRK0014 - - - 600,000 - - - Madrona Ave (Civic Center Dr to Torrance Blvd) NEW - - - 3,893,306 - - - Misc Water Main Repl for Developer & Street
Rehab Projects I 153 6,533,976 4,802,641 1,400,000 2,800,000 200,000 2,800,000 200,000 North Torrance Well Field NEW - - 500,000 - - - - On-Site Recycled Water Retrofits I 184 787,399 787,399 - - - - - Paseo de la Playa Residential Undergrounding I 175 - - 1,000,000 - - - - 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 1,635,983 400,000 400,000 400,000 400,000 - Utility Undergrounding Administration I 182 154,485 154,485 50,000 50,000 50,000 50,000 50,000 Van Ness Ave Water Wells & Transmission Main I 145 18,820,267 2,566,000 - 4,000,000 3,800,000 - - Walteria Slope Reservoir Repair I 181 1,497,346 1,202,362 - - - - - Total Expenditures 43,074,502$ 24,699,217$ 6,207,745$ 20,543,306$ 5,850,000$ 4,650,000$ 1,650,000$ Airport Emergency Water Supply Line
Funding Source(s)
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
Airport Capital Project Fund 800,000 800,000 - 500,000 - - - Total Expenditures 800,000$ 800,000$ -$ 500,000$ -$ -$ -$ Citywide Sewer System Improvements
Funding Source(s)
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
DIF - Sewer 9,000 9,000 - - - - - Sewer Capital Project Fund 6,922,450 6,899,506 1,857,745 1,400,000 1,400,000 1,400,000 1,400,000 Total Expenditures 6,931,450$ 6,908,506$ 1,857,745$ 1,400,000$ 1,400,000$ 1,400,000$ 1,400,000$ 201

189

Del Amo 5 Sewer Project
Funding Source(s)
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
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
Funding Source(s)
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
Measure W 500,000 500,000 - 5,900,000 - - - Sewer Capital Project Fund 3,821 3,821 - - - - - Total Expenditures 503,821$ 503,821$ -$ 5,900,000$ -$ -$ -$ High Pressure Zone Modifications
Funding Source(s)
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
Water Capital Fund 2,995,367 2,923,612 1, 000,000 1,000,000 - - - Total Expenditures 2,995,367$ 2,923,612$ 1, 000,000$ 1,000,000$ -$ -$ -$ La Carretera Park
Funding Source(s)
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
Water Capital Fund - - - 600,000 - - - Total Expenditures -$ -$ -$ 600,000$ -$ -$ -$ Madrona Ave (Civic Center Dr to Torrance Blvd)
Funding Source(s)
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
Other Grants - - - 3,893,306 - - - Total Expenditures -$ -$ -$ 3,893,306$ -$ -$ -$ Misc Water Main Repl for Developer & Street Rehab Projects Funding Source(s)
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
Water Capital Fund 6,533,976 4,802,641 1, 400,000 2,800,000 200,000 2,800,000 200,000 Total Expenditures 6,533,976$ 4,802,641$ 1, 400,000$ 2,800,000$ 200,000$ 2,800,000$ 200,000$ 202

190

North Torrance Well Field
Funding Source(s)
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
Water Capital Fund - - 500, 000 - - - - Total Expenditures -$ -$ 500, 000$ -$ -$ -$ -$ On-Site Recycled Water Retrofits
Funding Source(s)
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
Water Capital Fund 787,399 787,399 - - - - - Total Expenditures 787,399$ 787,399$ -$ -$ -$ -$ -$ Paseo de la Playa Residential Undergrounding
Funding Source(s)
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
Other Grants - - 1, 000,000 - - - - Total Expenditures -$ -$ 1, 000,000$ -$ -$ -$ -$ Sewer System Master Plan/Hydraulic Model
Funding Source(s)
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
Sewer Capital Project Fund 100,000 100,000 - - - - - Total Expenditures 100,000$ 100,000$ -$ -$ -$ -$ -$ Undergrounding Overhd Util/Inst St Lights-PVBlvd bet. Torr/Sepul Funding Source(s)
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
DIF - Utility Underground 1,635,983 1,635,983 400, 000 400,000 400,000 400,000 - Total Expenditures 1,635,983$ 1,635,983$ 400, 000$ 400,000$ 400,000$ 400,000$ -$ Utility Undergrounding Administration
Funding Source(s)
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
DIF - Utility Underground 154,485 154,485 50, 000 50,000 50,000 50,000 50,000 Total Expenditures 154,485$ 154,485$ 50, 000$ 50,000$ 50,000$ 50,000$ 50,000$ 203

191

Van Ness Ave Water Wells & Transmission Main
Funding Source(s)
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
Other Grants 740,000 - - - - - - Water Capital Fund 3,001,432 2,566,000 - 4,000,000 3,800,000 - - Water State Revolving Fund 15,078,835 - - - - - - Total Expenditures 18,820,267$ 2,566,000$ -$ 4,000,000$ 3,800,000$ -$ -$ Walteria Slope Reservoir Repair
Funding Source(s)
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
Water Capital Fund 1,497,346 1,202,362 - - - - - Total Expenditures 1,497,346$ 1,202,362$ -$ -$ -$ -$ -$ 204

192
Storm Drains/Basins
This section summarizes the planned capital
investments in our storm drain and storm water
basin infrastructure. The City is planning to
invest $ 20.5 million over the next f ive years to
ensure that our storm water infrastructure is
prepared to handle the increasing severity of
climate events.

Individual Project Details

Project Title
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
Citywide Storm Drain Replacement & Installation I 192 8,111,925 6,581,595 2,543,000 1,605,000 1,355,000 1,355,000 1,355,000 North Torrance Well Field-Predesign I108 8,180,204

136,614

50,000

-

-

-

-

Torrance Airport Storm Water Basin Project I 174 2,170,810

2,159,605

7,100,000

4,884,402

256,000

-

-

Total Expenditures 18,462,939$

8,877,814$

9,693,000$

6,489,402$

1,611,000$

1,355,000$

1,355,000$

Citywide Storm Drain Replacement & Installation
Funding Source(s)
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
DIF - Storm Drain 916,887 773,629 100,000 100,000 100,000 100,000 100,000 Measure W 6,416,347 5,039,612 1,505,000 1,505,000 1,255,000 1,255,000 1,255,000 Other Grants 778,691 768,354 938,000 - - - - Total Expenditures 8,111,925$ 6,581,595$ 2,543,000$ 1,605,000$ 1,355,000$ 1,355,000$ 1,355,000$ North Torrance Well Field-Predesign
Funding Source(s)
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
Other Grants 647,168 64 - - - - - Water Capital Fund 7,533,035 136,550 50,000 - - - - Total Expenditures 8,180,204$ 136,614$ 50,000$ -$ -$ -$ -$ Torrance Airport Storm Water Basin Project
Funding Source(s)
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
General Fund 4,673 4,673 - - - - - Grant 2,000,000 2,000,000 - - - - - Measure W Grant - - 7,100,000 4,884,402 256,000 - - Sewer Capital Project Fund 166,138 154,932 - - - - - Total Expenditures 2,170,810$ 2,159,605$ 7,100,000$ 4,884,402$ 256,000$ -$ -$ 205

193
Operating Projects
The following section summarizes projects that are categorized

by
the department who is responsible
for each project and should the

capital
project require maintenance, will be budgeted in the
respective department’s operating budget in the following year(s). The City is planning to dedicate $20.4

million over the next five
years

to address these other areas of needed investment
.

Project Title
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
3D GIS Mapping/Cyclomedia OP49 160,000 80,000 - - 160,000 - - Accela Continuous Improvement Initatives OP50 166,164 20,249 150,000 - 50,000 50,000 - AI Solutions OP50 - - 100,000 - - - - Airport Asset Management OP50 - - - - 110,000 - - AssetWorks Software Implementation OP50 121,000 964 - - - - - Automated Meter Integration Upgrade OP83 7,250,000 100,000 - - - - - Building Code Updates OP49 - - - - 30,000 - - CA DOJ Monitor OP70 500,000 - 1,000,000 750,000 750,000 500,000 500,000 Citywide Asset Inventory OP83 - - 400,000 - - - - Citywide Event Perimeter Protection Measures OP83 150,000 150,000 - - - - - Citywide Facility Reservation System OP50 100,000 100,000 75,000 - - - - Citywide Parks Master Plan OP93 300,000 300,000 450,000 - - - - Citywide Traffic Analysis OP83 - - 500,000 - - - - Citywide Tree Planting Program OP83 854,000 33,060 427,000 427,000 - - - Citywide Web Redesign OP50 530,000 7,301 - - - - - Civic Center Master Plan OP41 660,000 486,125 200,000 - - - - Community AED Purchase OP71 204,622 86,761 - - - - - Computer Aided Dispatch (CAD)
Implementation OP50 2,335,659 1, 001 - - - - - Customer Service Enhancement OP50 40,000 40,000 (40,000) - - - - Data Warehouse - Reporting and Analytics OP50 - - - 90,000 90,000 90,000 - DCH Airport Site Remediation Account OP95 200,000 - - - - - - Del Amo Fashion Center PCC OP70 193,350 58,047 - - - - - Digitize Paper Files OP49 - - - - 150,000 100,000 80,000 Disaster Recovery Enhancement OP50 - - 250,000 - - - - EA Properties Remediation OP95 2,500,000 - - - - - - Electronic Content Management Enhancement OP50 102,861 19,086 - - - - - Electronic Plan Submittal and Review OP49 500,000 264,080 - - - - - Emergency Slope Stabilization at 4812
Newton Street OP83 245,000 77, 740 - - - - - Enterpise Resource Planning System
Replacement OP50 620,000 445, 579 3,000,000 2,500,000 - - - Enterprise Cashiering OP50 195,000 - 50,000 - - - - EV Chargers For Park & Library Facilities OP53 80,000 51,756 - - - - - Fire Modernization OP50 300,000 300,000 - - - - - GIS System Enhancements OP50 285,000 60,500 200,000 50,000 - - - Hi-Shear OU-2 Remediation Account OP95 3,000,000 3,000,000 - - - - - Historic Preservation Plan Update OP49 78,500 9,520 10,000 - - - - Housing Element Compliance OP49 296,012 109,987 60,000 - 500,000 100,000 - Library Needs Assessment OP93 97,000 4,300 - - - - - Local Roadway Safety Plan OP83 - - 450,000 - - - - Machado Lake Special Study OP83 - - 300,000 - - - - Microfilm Conversion OP70 175,000 175,000 - - - - - Migrate Laserfiche to Cloud OP50 - - - - - 100,000 - New Citizen Engagement for Web & Mobile OP50 95,000 60,000 50,000 25,000 25,000 25,000 - Oil Well Ordinance OP49 - - 60,000 - - - - Park Lighting Replacement and Repair OP93 385,862 26,941 - - - - - Park Signage Replacement OP93 - - 100,000 100,000 100,000 100,000 100,000 Patrol Rifle Refresh OP70 - - 600,000 - - - - Police IT Remediation OP50 250,000 900 - - - - - 206

194

Individual Project Details

Project Title
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
PROSECUTOR Software Implementation OP50 157,900 71,438 50,000 - - - - Public Safety Element Update /
Environmental Justice OP49 245,000 46,776 - - - - - Relocate Tarplant Preserve OP41 100,000 100,000 360,000 50,000 50,000 - - Remediate Soil at RTC Site OP41 423,954 58,475 - - - - - Replacement of RightFax (OpenText) OP50 7,579 - - - - - - Resurface Playing Courts OP93 875,000 866,200 125,000 - - - - SBL Airport Site Remediation Account OP95 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 16,351 - 100,000 - - - Street Name Sign Replacements OP83 262,278 18,221 - - - 500,000 500,000 Supervisory Control & Data Acq (SCADA)
Upgrades OP83 544,953 539,439 - - - - - Upgrade Post Production and Asset
Management Systems OP41 229,289 - 150,000 - - - - Use of Force Investigation OP70 240,000 - - - - - - User Fee & Development Impact Fee Study OP46 100,000 100,000 - - - - - Versaterm RMS OP50 - - 2,000,000 500,000 - - - Water System Master Plan OP83 500,000 500,000 - - - - - Total Expenditures 28,315,983$ 9,645,798$ 11,077,000$ 4,592,000$ 2,015,000$ 1,565,000$ 1,180,000$ Operating Projects - CIT
Operating Projects - CIT
Life-to-Date
Budget
Life-To-Date
Balance
FY 2026-27
Proposed
Bu
dget
FY 2027-28
Projected
Bu
dget
FY 2028-29
Projected
Bu
dget
FY 2029-30
Projected
Bu
dget
FY 2030-31
Projected
Bu
dget
Accela Continuous Improvement Initatives 166,164 20,249 150,000 - 50,000 50,000 - AI Solutions - - 100,000 - - - - Airport Asset Management - - - - 110,000 - - AssetWorks Software Implementation 121,000 964 - - - - - Citywide Facility Reservation System 100,000 100,000 75,000 - - - - Citywide Web Redesign 530,000 7,301 - - - - - Computer Aided Dispatch (CAD) Implementation 2,335,659 1,001 - - - - - Customer Service Enhancement 40,000 40,000 (40,000) - - - - Data Warehouse - Reporting and Analytics - - - 90,000 90,000 90,000 - Disaster Recovery Enhancement - - 250,000 - - - - Electronic Content Management Enhancement 102,861 19,086 - - - - - Enterpise Resource Planning System
Replacement 620,000 445, 579 3,000,000 2,500,000 - - - Enterprise Cashiering 195,000 - 50,000 - - - - Fire Modernization 300,000 300,000 - - - - - GIS System Enhancements 285,000 60,500 200,000 50,000 - - - Migrate Laserfiche to Cloud - - - - - 100,000 - New Citizen Engagement for Web & Mobile 95,000 60,000 50,000 25,000 25,000 25,000 - Police IT Remediation 250,000 900 - - - - - PROSECUTOR Software Implementation 157,900 71,438 50,000 - - - - Replacement of RightFax (OpenText) 7,579 - - - - - - Versaterm RMS - - 2,000,000 500,000 - - - Total Expenditures 5,306,163$ 1,127,018$ 5,885,000$ 3,165,000$ 275,000$ 265,000$ -$ Funding Source(s)
Airport Capital Project Fund - - - - 110,000 - - Asset Forfeiture 1,142,955 - 415,000 - - - - Fleet Services Capital Fund 19,000 262 - - - - - General Fund 3,775,208 1,126,493 635,000 165,000 165,000 265,000 - Measure SST Fund 350,000 - 4,835,000 3,000,000 - - - Transit Capital Fund 19,000 262 - - - - - Total Expenditures 5,306,163$ 1,127,018$ 5,885,000$ 3,165,000$ 275,000$ 265,000$ -$ 207

195

Operating Projects - City Manager
Operating Projects - City Manager
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
Civic Center Master Plan 660,000 486,125 200,000 - - - - Relocate Tarplant Preserve 100,000 100,000 360,000 50,000 50,000 - - Remediate Soil at RTC Site 423,954 58,475 - - - - - Upgrade Post Production and Asset
Management Systems 229,289 - 150,000 - - - - Total Expenditures 1,413,243$ 644,600$ 710,000$ 50,000$ 50,000$ -$ -$ Funding Source(s)
General Fund 1,183,954 644,600 560,000 50,000 50,000 - - PEG Fund Capital 229,289 - 150,000 - - - - Total Expenditures 1,413,243$ 644,600$ 710,000$ 50,000$ 50,000$ -$ -$ Operating Projects - Community Development
Operating Projects - Community Development
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
3D GIS Mapping/Cyclomedia 160,000 80,000 - - 160,000 - - Building Code Updates - - - - 30,000 - - Digitize Paper Files - - - - 150,000 100,000 80,000 Electronic Plan Submittal and Review 500,000 264,080 - - - - - Historic Preservation Plan Update 78,500 9,520 10,000 - - - - Housing Element Compliance 296,012 109,987 60,000 - 500,000 100,000 - Oil Well Ordinance - - 60,000 - - - - Public Safety Element Update / Environmental
Justice 245,000 46,776 - - - - - Strategic Plan Survey & Community
Profile/Environmental Scan 200,000 16,351 - 100,000 - - - Total Expenditures 1,479,512$ 526,715$ 130,000$ 100,000$ 840,000$ 200,000$ 80,000$ Funding Source(s)
General Fund 1,479,512 526,715 130,000 100,000 840,000 200,000 80,000 Total Expenditures 1,479,512$ 526,715$ 130,000$ 100,000$ 840,000$ 200,000$ 80,000$ Operating Projects - Community Services
Operating Projects - Community Services
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
Citywide Parks Master Plan 300,000 300,000 450,000 - - - - Library Needs Assessment 97,000 4,300 - - - - - Park Lighting Replacement and Repair 385,862 26,941 - - - - - Park Signage Replacement - - 100,000 100,000 100,000 100,000 100,000 Resurface Playing Courts 875,000 866,200 125,000 - - - - Total Expenditures 1,657,862$ 1,197,441$ 675,000$ 100,000$ 100,000$ 100,000$ 100,000$ Funding Source(s)
General Fund 97,000 4,300 - - - - - Measure SST Fund 1,175,000 1,166,200 675,000 100,000 100,000 100,000 100,000 Parks & Rec Open Space Fund 385,862 26,941 - - - - - Total Expenditures 1,657,862$ 1,197,441$ 675,000$ 100,000$ 100,000$ 100,000$ 100,000$ Operating Projects - Finance
Operating Projects - Finance
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
User Fee & Development Impact Fee Study 100,000 100,000 - - - - - Total Expenditures 100,000$ 100,000$ -$ -$ -$ -$ -$ Funding Source(s)
General Fund 100,000 100,000 - - - - - Total Expenditures 100,000$ 100,000$ -$ -$ -$ -$ -$ 208

196

Operating Projects - Fire
Operating Projects - Fire
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
Community AED Purchase 204,622 86,761 - - - - - Total Expenditures 204,622$ 86,761$ -$ -$ -$ -$ -$ Funding Source(s)
General Fund 204,622 86,761 - - - - - Total Expenditures 204,622$ 86,761$ -$ -$ -$ -$ -$ Operating Projects - General Services
Operating Projects - General Services
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
DCH Airport Site Remediation Account 200,000 - - - - - - EA Properties Remediation 2,500,000 - - - - - - EV Chargers For Park & Library Facilities 80,000 51,756 - - - - - Hi-Shear OU-2 Remediation Account 3,000,000 3,000,000 - - - - - SBL Airport Site Remediation Account 200,000 - - - - - - Total Expenditures 5,980,000$ 3,051,756$ -$ -$ -$ -$ -$ Funding Source(s)
Airport Capital Project Fund 5,900,000 3,000,000 - - - - - Fleet Services Capital Fund 50,000 50,000 - - - - - General Fund 30,000 1,756 - - - - - Total Expenditures 5,980,000$ 3,051,756$ -$ -$ -$ -$ -$ Operating Projects - Police
Operating Projects - Police
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
CA DOJ Monitor 500,000 - 1,000,000 750,000 750,000 500,000 500,000 Del Amo Fashion Center PCC 193,350 58,047 - - - - - Microfilm Conversion 175,000 175,000 - - - - - Patrol Rifle Refresh - - 600,000 - - - - Use of Force Investigation 240,000 - - - - - - Total Expenditures 1,108,350$ 233,047$ 1,600,000$ 750,000$ 750,000$ 500,000$ 500,000$ Funding Source(s)
General Fund 1,108,350 233,047 1,000,000 750,000 750,000 500,000 500,000 Measure SST Fund - - 600,000 - - - - Total Expenditures 1,108,350$ 233,047$ 1,600,000$ 750,000$ 750,000$ 500,000$ 500,000$ 209

197

Operating Projects - Public Works
Operating Projects - Public Works
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
Automated Meter Integration Upgrade 7,250,000 100,000 - - - - - Citywide Asset Inventory - - 400,000 - - - - Citywide Event Perimeter Protection Measures 150,000 150,000 - - - - - Citywide Traffic Analysis - - 500,000 - - - - Citywide Tree Planting Program 854,000 33,060 427,000 427, 000 - - - Emergency Slope Stabilization at 4812
Newton Street 245,000 77,740 - - - - - Local Roadway Safety Plan - - 450,000 - - - - Machado Lake Special Study - - 300,000 - - - - Sewer Lift Station Pump and Back-up
Generator Replacements 1,260,000 1,260,000 - - - - - Street Name Sign Replacements 262,278 18,221 - - - 500,000 500,000 Supervisory Control & Data Acq (SCADA)
Upgrades 544,953 539,439 - - - - - Water System Master Plan 500,000 500,000 - - - - - Total Expenditures 11,066,231$ 2,678,461$ 2,077,000$ 427, 000$ -$ 500,000$ 500,000$ Funding Source(s)
Gas Tax - - 90,000 - - - - General Fund 657,278 245,962 300,000 - - 500,000 500,000 GRANT - - 360,000 - - - - Measure R Local Return - - 900,000 - - - - Measure SST Fund 854,000 33,060 427,000 427, 000 - - - Sewer Capital Project Fund 1,260,000 1,260,000 - - - - - Water Capital Fund 8,294,953 1,139,439 - - - - - Total Expenditures 11,066,231$ 2,678,461$ 2,077,000$ 427, 000$ -$ 500,000$ 500,000$ 210

198
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 our
community. The City is planning to dedicate $3.2
million over the next

five
years to address these
other areas of needed investment.

Individual Project Details

Project Title
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
Downtown Torrance OTR0001 1,279,208 301,430 123,819 310,000 300,000 - - Torrance Municipal Airport FAC0017 3,055,917

3,055,917

1,500,000

250,000

250,000

250,000

250,000

Total Expenditures 4,335,125$

3,357,348$

1,623,819$

560,000$

550,000$

250,000$

250,000$

Downtown Torrance
Downtown Torrance
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
Downtown Parking Structure 125,000 93, 200 - - 300,000 - - Refurbish Amenities and Signs 654,208 92, 049 - 10,000 - - - Replace String Lights - - 240,000 300,000 - - - Upgrade Downtown Torrance Lights to LED 500,000 116, 181 (116,181) - - - - Total Expenditures 1,279,208$ 301, 430$ 123,819$ 310,000$ 300,000$ -$ -$ Funding Source(s)
General Fund 1,279,208 301, 430 (116,181) 10,000 - - - Measure SST Fund - - 240,000 300,000 300,000 - - Total Expenditures 1,279,208$ 301, 430$ 123,819$ 310,000$ 300,000$ -$ -$ Torrance Municipal Airport
3301 Airport Dr, Torrance, CA 90505 | District 6
Torrance Municipal Airport
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
Airport Pavement Maintenance Program 3,055,917 3,055,917 1,500,000 250,000 250,000 250,000 250,000 Total Expenditures 3,055,917$ 3,055,917$ 1,500,000$ 250,000$ 250,000$ 250,000$ 250,000$ Funding Source(s)
Airport Capital Project Fund 3,055,917 3,055,917 1,500,000 250,000 250,000 250,000 250,000 Total Expenditures 3,055,917$ 3,055,917$ 1,500,000$ 250,000$ 250,000$ 250,000$ 250,000$ 211

APPENDIX
212

199
Appendix
Classification of Funds
The City follows all Government Finance Officers’ Association (GFOA) ’s best practices and pronouncements as it pertains to its overall fund structure. Below is an explanation of the major fund categories, which includes a description and purpose, along with examples of funds included in each respective group.

Governmental Funds are used to account for activities supported by taxes and intergovernmental revenues. Governmental activities include all the City’s basic services, such as general government, public safety (police and fire), public works, community development, and cult ure and recreation.

Included in this classification are the

General Fund
-Operating

Fund; General Fund-Measure SST Fund;
General

Fund
-Restricted;

and General Fund
-Assigned

Fund
.

General Fund-Restricted includes CalPERS

California Employers' Pension Prefunding Trust (CEPPT)
Fund and Public, Educational, and Governmental

(PEG) Fund
, while General Fund-Assigned includes
the City’s various General Fund Replacement Funds and

the City’s Economic Anomaly

Reserve Fund
.

Nonmajor Governmental Funds are governmental funds which do not meet the fund asset or fund revenue threshold to be considered a major governmental fund for reporting in the ACFR. The City presents the budgets on the fund level for this classification for review by Council and the p ublic.

Included in this classification are the Air Quality Management District, Debt Service, Meadow Park Parking Lot District, Low Mod Fund, Section 8 Housing, Street Lighting , Traffic Safety and Vanpool Funds.

Enterprise Funds are used to account for fee -supported businesses operated by the City. Net earnings of these funds provide working capital for maintenance and betterment of the equipment and fixed assets of the business. Included in this classification are the Airport, S anitation, Sewer, Transit and Water Funds.

Internal Service Funds are used to account for financing of goods and services provided by one city department to other departments of the city and to other governmental units on a cost - reimbursement basis. Included in this classification are the Self-Insurance and Fleet Services Funds.

Fiduciary Funds consist of private -purpose trust funds and custodial funds. The City is the trustee, or fiduciary, for its employees’ pension plans. It is also responsible for other assets that, because of a 213

200
trust arrangement, can be used only for trust beneficiaries. Included in this classification are the Area G, Interoperability Network South Bay, and Redevelopment Agency Funds. The City Council is not responsible for appropriating the Area G and Interoperability Network South Bay operating budgets as these have separate Boards responsible for budget appropriation, therefore they are not shown in this budget document.

Employee Compensation and Benefits
Background
The City of Torrance (City) has 11 represented labor unions and 10 unrepresented labor groups. Each labor union has a Memorandum of Understanding (MOU) that is used to outline the compensation and benefits provided to each employee, and each labor group has a resolution that outlines compensation and benefits . The City strives to provide competitive compensation packages in alignment with comparison cities, while balancing other financial demands on the organization.

Below are the various forms of compensat ion and benefits which are provided to employees based on their MOU.

Administrative Leave
Employees in the City of Torrance Executive and Management Employees Resolution, depending on their category, are provided up to eight (8) days of administrative leave per fiscal year.

Annual Leave
Certain employees represented by the Police Officers Association and Police Commanders Association accrue annual leave monthly, with the maximum amount determined by the MOUs, and the accrual rate varies based on the months of service.

Sick Leave
Full-time employees typically accrue sick (6) hours of sick leave per month. For seasonal -recurrent employees the amount of sick leave complies with state law.

Vacation
Employees in the City of Torrance accrue vacation leave on an hour -for-hour basis, with the maximum amount determined by their associated MOU/Resolution.
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201
Section 125 Plan
The City of Torrance offers a variety of medical, dental, and vision plans to employees. City contribution rates, and any opt-out incentives, are determined

in their respective

MOU
/Resolutions.

Medicare
All newly hired employees contribute a portion of gross salary for Medicare coverage through a dedicated payroll tax, as determined by Federal regulations.

Social Security
All full - time, non-sworn safety employees, at the City of Torrance pay into Social Security through a dedicated payroll tax.

Flexible Spending Account
Employees may sign up for a flexible spending account (FSA) related to medical reimbursement or childcare reimbursement during an

o
pen enrollment period. An exception to this would be a change in the family, such as the birth of a child.

Educational Incentive Program/Tuition Reimbursement
City of Torrance employees in certain MOU/Resolutions are eligible for educational incentive pay premiums and/or tuition reimbursements

(up to $1,500 per year).

Employees who apply for
educational incentives and complete the requirement

will
receive

a premium pay based

on
rates
determined in their respective

MOU/Resolution.

PARS
PARS is a supplemental retirement plan administered by Public Agency Retirement Services (PARS).

Certain employees in the Engineers and Fiscal Employees Association and Professional and Supervisory Association were historically eligible for this plan but as a result of negotiations in 2024 this plan is now frozen with no more years of service being accrued and highest compensation capped

.

CalPERS
The City participates in CalPERS' agen cy multiple-employer, defined -benefit (DB) pension plan, which guarantees a set retirement benefit based on years of service, highest CalPERS eligible 215

202
compensation, and age upon retirement. Employees fall into four tiers based on hire date and employment status:

1. Tier 1 (Classic): In this group, employees are eligible for the Employer Paid Member Contribution (EPMC). The CalPERS benefit is calculated using the highest single year of CalPERS eligible compensation, limited to $350,000 in 2025

.

If an employee was hired before
July 1996 there is no limit on CalPERS eligible compensation limits. a. Miscellaneous Employees: The City contributes 7% for EPMC on behalf of the employees.
b. Safety Employees:

The City contributes 9% for EPMC on behalf of the employees.

1. Tier 2 (2010): These employees are part of the Classic benefit structure but were hired after the City amended its MOU/Resolutions to remove the Employer Paid Member Contribution (EPMC) as a benefit. This meant the City would no longer contribute on behalf of the employee and rather the amount would be deducted from employees’ paychecks.

2. Tier 3 (PEPRA):

This group was created in January 2013 as a result of Pension Reform legislation at the state level and created an entirely new benefit structure. Employees in this group have a different retirement age, contribute 50% of the normal cost of the pension plan, and have their retirement benefit calculated using the highest three

-
year period of CalPERS
eligible compensation. Further, there are reduced CalPERS eligible compensation limits.

These amounts are typically adjusted annually. Additionally, there are two sub-tiers within the safety plan: 90% Industrial Disability Retirement (IDR) and 50% Industrial Disability Retirement (IDR). The 90% IDR benefit started 1/1/2013 and then the 50% IDR benefit took over starting 1/1/14.
a. Miscellaneous Employees:

For employees participating in social security, the CalPERS eligible compensation limit is set at $ 155,081 in 202

5 . Rather than contribute a fixed
7%, these employees contribute half of the normal cost of this pension plan, which is currently 8%.
b. Safety Employees:

For employees not participating in social security (safety employees), the CalPERS eligible compensation limit is set at $186,096

for 2025. Rather
than contribute a fixed 9%, these employees contribute half of the normal cost of this pension plan.
i. For Fire Safety employees in the 90% IDR benefit structure, the employee contributes 12% and for those in the 50% IDR benefit structure, the employee contributes 11.25%.
ii. For Police safety employees in the 90% IDR benefit structure, the employee contributes 15.50% and for those in the 50% IDR benefit structure, the employee contributes 13.00%
216

203

3. Tier 4 (Part-Time/Post-Tax): Reserved for part -time or seasonal workers logging over 1,000 hours annually, their participation and associated liability in the pension plan are comparatively minor and thus not detailed in headcount tables.

Based on the Tier in which an employee falls and the Plan in which they are enrolled, they qualify for one of the below retirement benefit formulas:

When an individual retires, the above table provides a guideline for the amount of benefit they would receive annually if they retired at the plan’s “normal” retirement age. CalPERS has a sliding scale for those that retire earlier/later. An employee would take their CalPERS eligible compensation (either highest 1 - or 3 -year period depending on plan up to the Tier limit) and multiply that against their respective percentage multiplier (i.e. 2%, 3%, 2.7%) and then multiply that against their years of service with CalPERS. As a simple example, this would determine their benefit under the CalPERS system. There are many different considerations that would affect the end result including: service in different cities, exact age, years of service, or death benefit

selected.

Plan Tier 1: Classic Tier 2: 2010 Tier 3: PEPRA
Miscellaneous 2% @ 55 2% @ 55 2% @ 62
Fire Safety 3% @ 50 3% @ 50 2.7% @ 57
Police Safety 3% @ 50 3% @ 50 2.7% @ 57
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204
Fiscal Policies
General Policies
The City will maintain sound financial practices in accordance with all Federal, State, and local laws and direct its financial resources towards meeting the City’s long-term goals.

The City will maintain and further develop programs to assure its long -term ability to pay the costs necessary to provide the level and quality of service required by its citizens.

The City annually adopts a budget for the upcoming fiscal year. Through this budget document, the City Council establishes public policy by setting funding levels for all funds and exercises control over City spending. The budget further serves as a financ ial planning tool to ensure that the inflow of resources (revenues) is adequate to meet both anticipated and unanticipated needs (expenditures).

The City is committed to fiscal sustainability. This is defined as maintaining a long -term view of financial planning that anticipates and proactively addresses risks to preserve and enhance quality of life and service provision as identified and prioritiz ed through community input. The City

is
committed

to:

•

Informed Decision -Making – Staff will identify and evaluate immediate and long

-
term
economic, social, and environmental impacts of all issues provided for Council consideration. •

Transparency – The City will conduct all business with transparency pursuant to applicable laws and regulations. The City will proactively pursue ways to make financial information publicly available, accessible, and easy to understand. •

Pursuing Diversified Revenue Sources – The City will pursue diversified revenue sources that align with community priorities and support expenditures. •

Managing Long-Term Liabilities – The City will proactively identify and monitor long -term financial liabilities, including unfunded pension and OPEB obligations, and commits to taking actions to manage these commitments that prioritize the City’s long -term financial sustainability.
•

Shared Responsibility – The City recognizes a shared responsibility between the employee and employer to appropriately fund employee benefits to attract and retain high -performing employees while maintaining a long-term sustainable and balanced budget. •

Seeking Efficiency and Effectiveness – Staff will continuously explore ways to operate more efficiently while preserving effectiveness.

218

205
Operating Budget
The City will follow a biennial budget process, emphasizing long -range planning and effective program management. The biennial budget process allows staff to plan ahead for future years. In addition to planning a two -year budget, staff will incorporate multi -year projections to ensure the long-term strategy is balanced and achievable.

The City’s use of the biennial budget process complies with Torrance City Charter (Article

11 ), which
includes the following requirements:
•

Definition of the fiscal year (July 1-June 30)
•

Adopted

budget preparation by the City Manager

•

Adopted

budget submission by City Manager to City Council on or before June 1

•

Budget adoption by City Council (at least 4 affirmative votes) by June 30 after completing two public hearings to give an opportunity for community input

In addition to the annual budget process staff will complete two interim budget review reports, a First Quarter and Mid -Year Budget Review Report. These reports will analyze budget status at these two different points, provide an opportunity to adjust reve nue or expenditure budgets as well as the approval of any program modifications.

In accordance with the City Charter, the City Council may amend the budget during the fiscal year by an affirmative vote of at least four Council Members.

In addition, the City Manager is authorized
to
approve budget adjustments within individual funds and delegated the authority to approve appropriation requests of up to $250,000, as deemed reasonably necessary to address operational needs and achieve City priorities

per City

Council

Policy 3
.

Each year, during the budget process, the following will be addressed:
•

The City will adopt a balanced budget by June 30.
•

The City will make all current, ongoing expenditures with current, ongoing revenues, avoiding procedures that balance current budgets by postponing needed expenditures or accruing future revenues.
•

The City will estimate revenues using an objective and analytical process utilizing both past experiences and known variables; in the case of assumption uncertainty, conservative projections will be used.
•

The City will maintain a level of expenditure that supports essential services and promotes quality of life for the citizens of Torrance.
219

206
• The City will forecast General Fund and other major internal services and enterprise funds for a five-year period and will update the forecast at least annually. The forecast will guide budget recommendations for Council consideration.
•

The City will endeavor to maintain a diversified and stable revenue stream to minimize the impact of short-term fluctuations in any one revenue source. •

The City will avoid targeting revenues for specific purposes wherever possible, allowing maximum flexibility in funding decisions on an annual basis. •

One-time revenues will not be regularly utilized for recurring expenditures. •

The City will endeavor to pay down its unfunded liabilities in the areas of pension, OPEB, and long-term debt. For the purposes of pension and OPEB, the City will utilize trust funds (Section 115 Trust) to assist in managing these long-term liabilities.

Capital Improvement Plan (CIP) Budget
The City will annually plan for capital improvements for a 5 -year period. The CIP budget will incorporate Council priorities, community objectives, and projects that will improve operational efficiency. The CIP will be presented for Council approval each fiscal year as part of adopting the budget.

The operating impacts of any CIP budget item will be incorporated into the operating budget to demonstrate the full cost of implementation. The City will maintain all assets at a sufficient level to protect the City’s capital investment and to minimize future maintenance and replacement costs.

Budgetary Control
The City Council is responsible for adopting an annual budget for all funds of the City. The budgets of the City will be appropriated via two separate resolutions. The first resolution shall address the financial needs of the operating budget including any transfers to fund anticipated CIP needs. The second resolution shall address the financial needs of the CIP budget. The City is a Fiduciary for two funds that are outside of the purview of the City Council, which includes the Interoperability Network South Bay and the Area G Budget. These budgets are adopted by their respective Boards. The City Council also serves as the governing body for the Successor Agency to the Former

Redevelopment

Agency, the Housing Authority, and the Public Financing Authority, which addresses budgets for the Successor Agency to the Former

Redevelopment
Agency, Section 8 Housing, and Debt Service Funds.

Beginning in FY22-23, the City separately tracks revenues and expenditures of Measure SST, a ½ cent transactions and use tax, appr oved by Torrance voters in June 2022. This measure included strict accountability requirements with a 7 -member oversight committee being established. This 220

207
Committee is charged with reviewing the activity of the Measure SST Fund during the year, along with audited financial statements ensuring that funds are spent in accordance with the City Council approved spending plan.

The budget adoption for both resolutions require a majority vote, which includes at least 4 of 7 Council members. The City Council approves any revisions that increase the total budgeted expenditures or revenues for any funds, as appropriated, in the operating or CIP budgets. The City Council also approves any changes to staffing levels, including budgeted permanent and as -needed full-time equivalent positions. The City Manager is authoriz ed by the City Council to allocate the budget to more detailed levels of control for administrative purposes within each of the respective budgets (operating and CIP). Th

is
includes changes between major projects, departments (TMC

12.1.8), programs, or object categories (i.e. salaries & benefits versus materials) within a given fund’s appropriation limit for each respective budget (operating and CIP).

The City Manager is also delegated authority for periodic appropriations as outlined in the Torrance Municipal Code (TMC) section 12.1. 8 and further explained in City Council Policy 3. In addition, changes to the budget shall take place during regularly scheduled Council meetings as recommended. Changes to any budget requires a majority vote of the Council (4 of 7 members).

Basis of Budgeting
The City of Torrance’s budget is consistent with the Annual Comprehensive Financial Report (ACFR).

Governmental funds, including general, special revenue and capital project funds, are budgeted on a modified accrual basis with a focus on near -term inflows and outflows of financial resources.

Revenues are recognized when measurable and available, while expenditures are recognized as soon as liabilities are incurred, except for debt service, capital lease obligations, inventories, and prepaid items. Year -end encumbrances are included in the fiscal year’s expenditures (actual, budgetary basis), as they repr esent financial resources committed for goods or services to be delivered in the near future (usually within one or two months). However, many multi -year capital projects are budgeted on a full cost basis which spans multiple years. Budgets for capital pro jects remaining at year-end for active projects are continued to the next fiscal year until the completion of the project.

Proprietary funds, including enterprise funds and internal service funds, are budgeted on an accrual basis similar to private -sector businesses, with a focus on total economic resources. Revenues are recognized when they are earned, while expenses are recognized when the liability is incurred. Year- end encumbrances are excluded from the fiscal year’s expenses, for the transactions that have not occurred. The City budgets for all non-cash related items such as investment adjustments to market 221

208
value, depreciation, amortization, and bad debt expense. Similar to governmental funds, multi-year capital projects are often budgeted on a full cost basis and the year -end active project budgets are continued to the next fiscal year until the completion of the project.

Appropriations Limit (Gann Limit)
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. Proposition 4 created Article XIIIB of the State Constitution, requiring each local jurisdiction to establish its appropriation limit by resolution each year. The appropriation limit does not apply to the entire City budget or to the City’s entire General Fund, but only to the appropriation of “proceeds of taxes” in the City’s “general government” type funds.

Proposition 4 became effective in FY 1980-81. From FY 1980

-
81 to 1989

-
90, each year’s appropriation
was based on the previous year’s limit, multiplied by the percentage change in population and the percentage change in the United States Consumer Price Inde

x or the change in California per capita
income, whichever was less.

In June 1990, the voters approved Proposition 111, which amended Proposition

4,
and the factors
used in the calculation of each year’s limit. The factors to use are the Population Factor and Price Factor. For the Population Factor, the City can select the annual change in city or county population.

For the Price Factor, the City can select the change in California per capita income or increase in non- residential assessed valuation due to new construction.

The City Council annually adopts a resolution establishing the City’s appropriations limit calculated in accordance with Article XIIIB (Proposition 4) of the Constitution of the State of California, Section 7900 et seq. of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City’s appropriations limit. Under the Gann Limit, a maximum amount is established for tax-funded government services. That amount is to be adjusted each year depending on the city population, changes in non -residential assessed value, and the transfer of financial responsibility for various governmental activities from one level of government to another.

Any significant amount of state tax revenue received above the Gann L imit is to lead to future tax rebates or cuts.

The supporting documentation used in calculating the City’s appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least 15 days before Council consideration of a resolution to adopt an app ropriations limit. The Council will 222

209
generally consider this resolution in connection with (or as reasonably possible based on information availability from the State) the annual budget.

Fund and Reserve Policies
General Fund
Economic Anomaly and Unrestricted Fund Balance Reserve Policy The City will maintain at the end of each fiscal

year a
n Economic Anomaly Reserve balance within the
Assigned fund balance at a level that is equal to at least 20% of the fiscal year’s General Fund - Operating Fund operating budget appropriation, as

adopted

(controlling for one-time expenditures).

In a year in which the City falls short, a plan shall be identified to meet the 20% policy.

Council
approval is required before expending funds from the Economic Anomaly Reserve.

In addition to

the
Economic Anomaly

Reserve

policy of 20%, the

City shall also maintain its
unrestricted fund balance at a minimum of 20% of the fiscal year’s General Fund -Operating Fund operating budget appropriation, as

adopted

(controlling for one-time expenditures), while striving to maintain a 30% ratio.

Capital Contribution Policy
The FY 2026-27 operating budget includes a new Capital Contribution Policy to provide a consistent and objective framework for funding the City’s capital needs. The policy is informed by state and national benchmarking practices , consistent with AAA -rated cities, that calls for an annual contribution equal to 5% (striving for 7.5%) of the City’s General Fund -Operating Fund adopted revenue budget (controlling for one -time revenues) to the Capital Improvement Plan.

In a year in
which the City falls short, a plan shall be identified to meet the 20% policy.

Recognizing current fiscal constraints, the City anticipates a phased implementation of this policy, with contributions gradually increasing overtime towards the 5% target . It is projected that the City will achieve this policy by FY 2034

-
35 . This measured approach is intended to balance ongoing operational needs with the importance of reinvesting in critical infrastructure. Implementing this policy will strengthen the City’s ability to plan for, maintain, and reinvest in critical infrastruct ure while promoting long-term financial stability.

Internal Service Funds
The City will maintain a Fleet Services Fund to provide centralized funding for the City’s services related to the repair, maintenance, and

replacement
of city vehicles. The City will maintain at the end
223

210
of each fiscal year a n unrestricted net position at a level that is equal to at least 20% of the fiscal year’s Fleet Services

budget appropriation, as amended (controlling for one
-time expenditures). To the
extent possible, the City will maintain a balance that is equivalent to the amortized replacement cost of each vehicle at a given point in its lifecycle, including anticipated growth in replacement costs. This will ensure the timely replacement of vehicles when they have met their useful life.

The City will maintain

a
Self-Insurance Fund to provide centralized funding for the City’s workers compensation, litigated/non-litigated claims, and unemployment claims costs.

As of June 30, 202

5 ,
the Self-Insurance Fund’s

unrestricted
net position is -$52

,
257,482

.

The City has historically operated
at a negative

net position
and in recent years

has made significant contributions

to
reducing this
negative balance. The City strives to fund 100% of its open liabilitie

s,
though this policy is set

to 80%
for co

nsistency with pension and OPEB

goals.

To the extent possible, the City will set funds aside in a manner that will cover the annual costs of the fund as well as the actuarially determined liabilities of the City’s workers’ compensation and liability claims. The City will make additional contributions to the fund,

if

available
,

at year
-end.

Enterprise Funds
The City will maintain at the end of each fiscal year a n unrestricted net position that is equal to at least 20% of the fiscal year’s operating budget appropriation, as amended (controlling for one -time expenditures). Such position

is considered sufficient to cover the operating working capital needs, vehicle replacement requirements, and capital infrastructure investment needs. The levels will ensure that a proper state of good repair is maintained on the overall infrastructure (where applicable)

to ensure

reliable and dependable service for customers.

Interdepartmental Charges
Cost Allocation Plan/Indirect Cost Rate
The City of Torrance prepares a cost allocation plan annually to identify the General Fund costs associated with providing certain services

with
proprietary and special revenue fund programs (i.e.

Section 8, Airport, Sanitation, Sewer, Water, Transit, Fleet, Self-Insurance), which are financed by user fees, grant funding, or other internal charges . These indirect charges reimburse the administration and overhead service provided by departments such as Council, City Manager, City Attorney, City Clerk, City T reasurer, Finance, General Services, Human Resources, Civil Service, and Information Technology, which is directly applicable to

these
operations. These indirect charges are assessed to
reflect the true costs of doing business through the City’s indirect cost allocation plan.

224

211
Data used in determining the cost allocation is gathered from the year’s most recent audited financial statements and applied to the coming budget year (i.e.

FY
2024-25 audited financials for the

FY 2026

–
27 budget). This is revised annually

by
FY 2026

–
27 assessing a charge equal to

31.58 %
of a subset of
Salaries & Employee Benefits costs.

Vehicle Replacement/Vehicle Maintenance
In order to equitably assign the full cost of the

Fleet Services

Fund across all departments, the City of
Torrance applies an allocation formula

based on the historical cost of services, fuel and parts, by department. The replacement cost of vehicles

are also assigned to each department
, based on actual
purchase price, an assumption of 5% cost increase per year, and useful life (varies by vehicle). This calculation will be refreshed annually,

and
amounts will fluctuate over the years. These charges

are
reflected in the Interdepartmental Charges expense classification

of each department, and the
Charges for Services revenue classification in the Fleet Services Fund.

Self-Insurance Cost Allocation
In order to equitably

assign the

full
cost of the Self Insurance Fund’s liability program across all departments, the City of Torrance

applies
a standard credibility weighted calculation of each
Department’s actual experience as calculated by our

actuarial consultants
. This calculation will be
refreshed annually,

and
amounts will fluctuate over the years. These charges are reflected in the Interdepartmental Charges expense classification of each department, and the Charges for Services revenue classification in the Self Insurance Fund.

Enterprise Fund Franchise Fees
In August 2020, City Council approved

a
levy of franchise fees

from the General Fund

to the City's
water, wastewater, and sanitation utilities for the use of the public right -of

-
way to provide their
services to customers. The amount levied to the Public Works Water,

Sewer
, and Sanitation Funds

is

equal to 2% of gross revenues charged for utilities (Charges for Services revenue classification). These charges are reflected in the

Interdepartmental Charges
expense classification of each

enterprise
fund,
and th

e Licenses, Fees, and Permits
revenue classification in the General Fund Operating

Fund.

Interfund Rent Allocation
In addition to franchise fees,

the General Fund charges rent to the

Fleet Services,
Water, Sewer, and
Sanitation Funds for use of buildings at the City Yard, which were financed, and whose debt service is paid for, by the General Fund Operating Fund.

Starting in FY 2026

-
27, the General Fund also will
charge rent to the Airport Fund for use of the City -owned land as well as to the Transit Fund for temporary use of the City-owned land next to the Regional Transit Center as a temporary parking lot 225

212
during the construction of the new parking structure. The calculation for rent is based on the square footage that each Fund/department occupies, and comparable commercial and warehouse

rental
and ground lease market rates

in the city of Torrance
. Specifically with the Airport Fund, based on
ability to pay, the

rate assessed i
s prorated . Market rates are re viewed and adjusted annually, as needed.

These charges are reflected in the Interdepartmental Charges expense classification of each enterprise fund, and the Use of Money & Property

revenue classification in the General Fund
Operating Fund.

Debt Policies
Findings
These Debt Management Policies are intended to comply with the Government Code Section 8855(i) and shall govern all debt undertaken by the City.

The City hereby recognizes that a fiscally prudent debt policy is required to:

•

Maintain the City's sound financial position.
•

Ensure the City has the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses.
•

Protect the City's creditworthiness.
•

Ensure that all debt is structured to protect both current and future taxpayers, ratepayers, and constituents of the City.
•

Ensure that the City's debt is consistent with the City's planning goals and objectives and capital improvement program or budget, as applicable.

Policies
Purposes for which debt may be issued:
•

Long-Term Debt – Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements facilities, equipment, and land to be owned and operated by the City.
(a) Long-term debt financings are appropriate when the following conditions exist:
o When the project to be financed provides a community benefit. o When the project to be financed will provide benefit to constituents over multiple years. o When total debt does not constitute an unreasonable burden to the City and its taxpayers and ratepayers.
o When the debt is used to refinance outstanding debt to produce debt service savings or to realize the benefits of a debt restructuring.
226

213
b) Long-term debt financings are not appropriate for current operating expenses and routine maintenance expenses.
c) The City may use long-term debt financings subject to the following conditions:
o

The project to be financed must be approved by the City Council. o

The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project. o

The City estimates that sufficient

revenue

will be available to service the debt through
its maturity.
o

The City determines that the issuance of the debt will comply with the applicable state and federal law.
•

Short-Term Debt – Short-term debt may be issued to provide financing for the City's operational cash flows to maintain a steady and even cash flow balance. Short-term debt may also be used to finance short-lived capital projects; for example, the City may undertake lease

-
purchase financing for equipment.
•

Financing on Behalf of Other Entities – The City may also find it beneficial to issue debt on behalf of other governmental agencies or private third parties to further the public purposes of the City. In such cases, the City shall take reasonable steps to confirm the financial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein.

Types of Debt
The following types of debt are allowable under these Debt Management Policies:
•

General obligation bonds
•

Bond or grant anticipation notes
•

Tax

and revenue anticipation notes

•

Lease

revenue bonds, certificates of participation and lease

-
purchase transactions
•

Other

revenue bonds (including sales tax revenue bonds) and certificates of participation

•

Pension obligation bonds
•

Land-secured financings, such as special tax revenue bonds issued under the Mello -Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes
•

Tax increment financing to the extent permitted under state law •

Conduit financings, such as financings for affordable rental housing and qualified 501(c)(3) organizations
The City may from time to time find that other forms of debt would be beneficial to further its public purposes, and the City Council may approve such debt without an amendment of these Debt Management Policies.

227

214
Debt shall be issued as fixed rate debt unless the City makes a specific determination as to why a variable rate issue would be beneficial to the City in

specific circumstances
.

Relationship of Debt to Operating and Capital Improvement Budgets The City is committed to long -term capital planning. The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s capital budget and the capital improvement plan.

The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues.

The City shall integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes.

The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.

Policy Goals Related to Planning Goals and Objectives
The City is committed to long -term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management, and budget administration. The City intends to issue debt for the purposes stated in th is Policy and to implement policy

decisions
incorporated in the City's operating and capital budgets.

It is a policy goal of the City to protect taxpayers, ratepayers, and constituents by utilizing conservative financing methods and techniques to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates, and charges.

When refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non

-
financial policy considerations, (i) minimum net present value debt service savings equal to or greater than 3.0% of the refunde d principal amount, and (ii) present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage. 228

215

Internal Control Procedures
When issuing debt, in addition to complying with the terms of these Debt Management Policies, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.

The City will periodically review the requirements of and will remain in compliance with the following:
•

any continuing disclosure undertakings under SEC Rule 15c2-12, •

any federal tax compliance requirements, including without limitation arbitrage and rebate compliance, related to any prior bond issues, and
•

the City's Investment Policy as they relate to the investment of bond proceeds.

It is the policy of the City to ensure that proceeds of debt are spent only on lawful and intended uses.

Whenever reasonably possible, and for the purpose of ensuring that proceeds of debt will be used for their intended purpose, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds.

Debt Limits
The outstanding principal amount of debt described will not exceed five percent (5%) of the total assessed value of property in the City, and debt service and lease payments incurred for financing purposes that are payable from the City's general fund will not exceed 10% of

citywide
annual
operating budget

appropriations.

Investment Policy
The Investment Policy is approved annually by Resolution by the City Treasurer. As such, this policy is

not included in the City’s budget
.

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216
Debt Financing Information

The City’s debt service costs for the next five years and thereafter are presented in the table above and the details of each debt issuance showing the principal and interest payments are in the following tables.

2016 Certificates of Participation
In 2016, the City of Torrance, with the Public Property Financing Corporation of California, issued $22.1 million of refunding certificates of participation to refinance the 2009 Certificates of Participation issued by the Torrance Public Financing Authority to finance the acquisition of approximately 15 acres of real property for the Regional Transit Center and other City uses. A portion ($6.1 million) of the 2016 Refunding Certificates of Participation was set aside for the construction of capital improvements selected by the City. The refunding certificates of participation debt is considered to be capital related.

Opus Bank Loan
In 2017, the City of Torrance entered into an installment sale agreement with the Public Property Financing Corporation of California, for the purpose of financing the drilling and construction of a new water well, the North Torrance Well Field Project. The proceeds from the agreement were $5.8 million for construction of the project. The installment sale agreement debt is considered to be capital related.

2018 Tax Allocation Refunding Bonds (Downtown Redevelopment Project) In October 2018, the Former Redevelopment Agency issued $3,665,000 Tax Allocation Refunding Bonds. Proceeds of the Bonds were used to refund the Agency’s outstanding Downtown Redevelopment Project Tax Allocation Refunding Bonds, 1998 Series A, to fund a re serve for the Bonds, to pay premium of the 2018 Insurance Policy, and to pay the costs of issuing the Bonds.

Debt Issuance Date Issued FY 2027 FY 2028 F Y 2029 FY 2030 FY 2031 Thereafter 2016 Certificate of Participation 11/15/2016 1,255,244 1, 259,744 1,259,994 1,258,743 1,255,993 20,125,283 Opus Bank Loan 10/1/2017 644,516

446,197

- - - - 2018 Tax Allocation Refunding Bonds
(Downtown Redevelopment Project) 10/25/2018 453,500 457, 875 456,125 - - - 2018 Tax Allocation Refunding Bonds
(Torrance Industrial Redevelopment Project) 10/25/2018 1,432,375 1, 427,625 1,424,750 - - - Lease Revenue Bonds Series 2020 10/22/2020 20,397,834 20,949,950 21,511,699 22,092,492 22,692,834 319,778,644

Lease Revenue Bonds Series 2021 4/15/2021 2,501,488

2,500,953

2,506,951

2,507,944

2,506,580

32,544,985
State Revolving Fund Loan 4/21/2025 818,054

818,054

818,054

818,054

818,054

10,634,702
Total 27,503,011$ 27,860,398$ 27,977,573$ 26,677,233$ 27,273,461$ 383,083,614$ 230

217
Starting from September 2019 and continuing through 2028, the principal on the term bonds matures at variable amounts ranging from $310,000 to $445,000. Interest is payable on March 1 and September 1 of each year with rates ranging from 3.0% to 5.0%. Princ ipal and interest are to be repaid directly from the tax increments accruing to the Agency.

2018 Tax Allocation Refunding Bonds (Torrance Industrial Redevelopment Project)
In October 2018, the Former Redevelopment Agency issued $11,505,000 Tax Allocation Refunding Bonds. Proceeds of the Bonds were used to refund the Agency’s outstanding Industrial Redevelopment Project Tax Allocation Refunding Bonds, 1998 Series A and B, and 1999 Series C, to fund a reserve for the Bonds, to pay premium of the 2018 Insurance Policy, and to pay the costs of issuing the Bonds. Starting from September 2019 and continuing through 2028, the principal on the term bonds matures at variable amounts ranging from $960,000 to $1,390,000. Interest is payable on March 1 and September 1 of each year with rates ranging from 3.0% to 5.0%. Principal and interest are to be repaid directly from the tax increments accruing to the Agency.

Lease Revenue Bonds Series 2020
In July 2020, as one component of the City's budget revisions for FY 20 20 - 21, the City refinanced a portion of the Unfunded Accrued Liability ("UAL") of the City's Miscellaneous, Fire Safety, and Police Safety pension plans with CalPERS. The City refinancing would accomplish three goals: to generate cash flow savings to the C ity and taxpayers through historically low interest rates relative to the CalPERS discount rate assumption; create a repayment schedule for the City's pension liabilities that increases more gradually; and set aside 20% of the savings into a Trust to mitigate future pension cost increases. The refinancing was achieved through the issuance of $349.5 million of lease revenue bonds by the Torrance Joint Powers Financing Authority, which yielded a true interest cost of 3.43% (versus 6.8% CalPERS charges the City on the outstanding UAL debt). The City makes lease payments from its

G
eneral Fund under a lease/leaseback of certain real property consisting of most of the City's streets.

Lease Revenue Bonds Series 2021
In March 2021, as one component of the City's ongoing efforts to reduce near - term expenditures in response to the COVID-19 pandemic, the City restructured and refinanced its outstanding Certificates of Participation (Refunding and Capital Projects), Series 2014 ("2014 COPs"). The City's primary goal for the financing was to reduce principal lease payments related to the 2014 COPs in FYs 2020

-
21 and
231

218
2021 - 22, but the City also reduced financing costs using lower interest rates available. The financing was achieved through the issuance of $39.7 million of lease revenue bonds by the Torrance Joint Powers Financing Authority. The City makes lease payments from its

General Fund
under a
lease/leaseback of certain real property consisting of the City Yard and Transit Facility.

State Revolving Fund
The Drinking Water State Revolving Fund (DWSRF) program assists public water systems in financing the cost of drinking water infrastructure projects needed to achieve or maintain compliance with Safe Drinking Water Act (SDWA) requirements. On April 2 2, 2025, the City received $14.3 million of loan proceeds from the DWSRF to fund the City’s

Van Ness Ave Water Wells & Transmission Main

Water
Infrastructure project.

The DWSRF loan
will be repaid over a period of 20 years with a discounted interest rate of 1.4%.

232

219
Credit Ratings
Below is an excerpt from the November 18, 2022, Standard & Poors (S&P) Rating Report. This report is updated when the City of Torrance has new borrowing s and remains the same “AA/Stable” rating as of April

202

6. 233

220
Debt Service Schedule s
2016 Certificate of Participation

Date Principal Interest Rate Interest Total Debt Service 5/1/2017 398,535$ 398,535$
11/1/2017 395,000 2.000% 432,147 827,147 5/1/2018 428,197 428,197
11/1/2018 405,000 3.000% 428,197 833,197 5/1/2019 422,122 422,122
11/1/2019 420,000 3.000% 422,122 842,122 5/1/2020 415,822 415,822
11/1/2020 435,000 4.000% 415,822 850,822 5/1/2021 407,122 407,122
11/1/2021 450,000 4.000% 407,122 857,122 5/1/2022 398,122 398,122
11/1/2022 470,000 4.000% 398,122 868,122 5/1/2023 388,722 388,722
11/1/2023 490,000 4.000% 388,722 878,722 5/1/2024 378,922 378,922
11/1/2024 510,000 4.000% 378,922 888,922 5/1/2025 368,722 368,722
11/1/2025 530,000 4.000% 368,722 898,722 5/1/2026 358,122 358,122
11/1/2026 550,000 4.000% 358,122 908,122 5/1/2027 347,122 347,122
11/1/2027 580,000 5.000% 347,122 927,122 5/1/2028 332,622 332,622
11/1/2028 610,000 5.000% 332,622 942,622 5/1/2029 317,372 317,372
11/1/2029 640,000 5.000% 317,372 957,372 5/1/2030 301,372 301,372
11/1/2030 670,000 5.000% 301,372 971,372 5/1/2031 284,622 284,622
11/1/2031 705,000 5.000% 284,622 989,622 5/1/2032 266,997 266,997
11/1/2032 735,000 3.000% 266,997 1,001,997 5/1/2033 255,972 255,972
11/1/2033 755,000 3.000% 255,972 1,010,972 5/1/2034 244,647 244,647
11/1/2034 780,000 3.000% 244,647 1,024,647 5/1/2035 232,947 232,947
11/1/2035 805,000 3.125% 232,947 1,037,947 5/1/2036 220,369 220,369
11/1/2036 830,000 3.125% 220,369 1,050,369 5/1/2037 207,400 207,400
11/1/2037 860,000 4.000% 207,400 1,067,400 5/1/2038 190,200 190,200
11/1/2038 895,000 4.000% 190,200 1,085,200 5/1/2039 172,300 172,300
11/1/2039 930,000 4.000% 172,300 1,102,300 5/1/2040 153,700 153,700
11/1/2040 970,000 4.000% 153,700 1,123,700 5/1/2041 134,300 134,300
11/1/2041 1,010,000 4.000% 134,300 1,144,300 5/1/2042 114,100 114,100
11/1/2042 1,050,000 4.000% 114,100 1,164,100 5/1/2043 93,100 93,100
11/1/2043 1,095,000 4.000% 93,100 1,188,100 5/1/2044 71,200 71,200
11/1/2044 1,140,000 4.000% 71,200 1,211,200 5/1/2045 48,400 48,400
11/1/2045 1,185,000 1.000% 48,400 1,233,400 5/1/2046 24,700 24,700
11/1/2046 1,235,000 4.000% 24,700 1,259,700 Total 22,135,000$ 15,989,308$ 38,124,308$ 234

221
Opus Bank Loan – Water Fund

Date Principal I nterest Rate Interest Debt Service
5/1/2018 195,000$ 2.360% 6,064$ 201,064$ 11/1/2018 256,716 2.360% 3,599 260,315 5/1/2019 259,745 2.360% 10,400 270,145 11/1/2019 262,810 2.360% 62,596 325,406 5/1/2020 265,911 2.360% 56,347 322,258 11/1/2020 269,049 2.360% 53,209 322,258 5/1/2021 272,224 2.360% 50,034 322,258 11/1/2021 275,436 2.360% 46,822 322,259 5/1/2022 278,686 2.360% 43,572 322,258 11/1/2022 281,975 2.360% 40,283 322,258 5/1/2023 285,302 2.360% 36,956 322,258 11/1/2023 288,669 2.360% 33,590 322,259 5/1/2024 292,075 2.360% 30,183 322,258 11/1/2024 295,521 2.360% 26,737 322,258 5/1/2025 299,008 2.360% 23,250 322,258 11/1/2025 302,537 2.360% 19,721 322,258 5/1/2026 306,107 2.360% 16,151 322,258 11/1/2026 309,719 2.360% 12,539 322,258 5/1/2027 313,373 2.360% 8,885 322,258 11/1/2027 317,071 2.360% 5,187 322,258 5/1/2028 122,494 2.360% 1,445 123,939 Total 5,749,428$ 587,571$ 6,336,999$ 235

222
2018 Tax Allocation Refunding Bonds (Downtown Redevelopment Project)

Date Principal
Coupo
n Interest Debt Service Annual Debt Service
3/1/2019 59,552.50$ 59,552.50$ 59,552.50$ 9/1/2019 340,000.00$

3 .0% 85,075.00$ 425,075.00$
3/1/2020 79,975.00$

79,975.00$

505,050.00$

9/1/2020 310,000.00$

4.0% 79,975.00$

389,975.00$

3/1/2021 73,775.00$

73,775.00$

463,750.00$

9/1/2021 320,000.00$

4.0% 73,775.00$

393,775.00$

3/1/2022 67,375.00$

67,375.00$

461,150.00$

9/1/2022 330,000.00$

5.0% 67,375.00$

397,375.00$

3/1/2023 59,125.00$

59,125.00$

456,500.00$

9/1/2023 345,000.00$

5.0% 59,125.00$

404,125.00$

3/1/2024 50,500.00$

50,500.00$

454,625.00$

9/1/2024 365,000.00$

5.0% 50,500.00$

415,500.00$

3/1/2025 41,375.00$

41,375.00$

456,875.00$

9/1/2025 385,000.00$

5.0% 41,375.00$

426,375.00$

3/1/2026 31,750.00$

31,750.00$

458,125.00$

9/1/2026 400,000.00$

5.0% 31,750.00$

431,750.00$

3/1/2027 21,750.00$

21,750.00$

453,500.00$

9/1/2027 425,000.00$

5.0% 21,750.00$

446,750.00$

3/1/2028 11,125.00$

11,125.00$

457,875.00$

9/1/2028 445,000.00$

5.0% 11,125.00$

456,125.00$

456,125.00$

Total 3,665,000.00$ 1,018,127.50$ 4,683,127.50$ 4,683,127.50$

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223
2018 Tax Allocation Refunding Bonds (Torrance Industrial Redevelopment Project)

Date Principal Coupon Interest Debt Service
Annual Debt
Service
3/1/2019 186,917.50$ 186,917.50$ 186,917.50$ 9/1/2019 1,080,000.00$ 3.0% 267,025.00$ 1,347,025.00$ 3/1/2020 250,825.00$ 250,825.00$ 1,597,850.00$ 9/1/2020 960,000.00$ 4.0% 250,825.00$ 1,210,825.00$ 3/1/2021 231,625.00$ 231,625.00$ 1,442,450.00$ 9/1/2021 1,000,000.00$ 4.0% 231,625.00$ 1,231,625.00$ 3/1/2022 211,625.00$ 211,625.00$ 1,443,250.00$ 9/1/2022 1,040,000.00$ 5.0% 211,625.00$ 1,251,625.00$ 3/1/2023 185,625.00$ 185,625.00$ 1,437,250.00$ 9/1/2023 1,090,000.00$ 5.0% 185,625.00$ 1,275,625.00$ 3/1/2024 158,375.00$ 158,375.00$ 1,434,000.00$ 9/1/2024 1,150,000.00$ 5.0% 158,375.00$ 1,308,375.00$ 3/1/2025 129,625.00$ 129,625.00$ 1,438,000.00$ 9/1/2025 1,205,000.00$ 5.0% 129,625.00$ 1,334,625.00$ 3/1/2026 99,500.00$ 99,500.00$ 1,434,125.00$ 9/1/2026 1,265,000.00$ 5.0% 99,500.00$ 1,364,500.00$ 3/1/2027 67,875.00$ 67,875.00$ 1,432,375.00$ 9/1/2027 1,325,000.00$ 5.0% 67,875.00$ 1,392,875.00$ 3/1/2028 34,750.00$ 34,750.00$ 1,427,625.00$ 9/1/2028 1,390,000.00$ 5.0% 34,750.00$ 1,424,750.00$ 1,424,750.00$ Total 11,505,000.00$ 3,193,592.50$ 14,698,592.50$ 14,698,592.50$ 237

224
Lease Revenue Bonds Series 2020

Date Principal Interest Rate I nterest Debt Service
10/1/2021 2,015,000$ 1 .239% 10,354,094$ 12,369,094$ 4/1/2022 5,485,266 5 ,485,266
10/1/2022 7,415,000 1 .289% 5,485,266 12,900,266 4/1/2023 5,437,477 5 ,437,477
10/1/2023 8,015,000 1 .427% 5,437,477 13,452,477 4/1/2024 5,380,290 5 ,380,290
10/1/2024 8,650,000 1 .604% 5,380,290 14,030,290 4/1/2025 5,310,917 5 ,310,917
10/1/2025 9,325,000 1 .804% 5,310,917 14,635,917 4/1/2026 5,226,805 5 ,226,805
10/1/2026 10,050,000 2 .105% 5,226,805 15,276,805 4/1/2027 5,121,029 5 ,121,029
10/1/2027 10,830,000 2 .255% 5,121,029 15,951,029 4/1/2028 4,998,921 4 ,998,921
10/1/2028 11,655,000 2 .422% 4,998,921 16,653,921 4/1/2029 4,857,779 4 ,857,779
10/1/2029 12,535,000 2 .522% 4,857,779 17,392,779 4/1/2030 4,699,712 4 ,699,712
10/1/2030 13,470,000 2 .622% 4,699,712 18,169,712 4/1/2031 4,523,121 4 ,523,121
10/1/2031 14,460,000 2 .772% 4,523,121 18,983,121 4/1/2032 4,322,705 4 ,322,705
10/1/2032 15,510,000 2 .872% 4,322,705 19,832,705 4/1/2033 4,099,981 4 ,099,981
10/1/2033 16,625,000 2 .972% 4,099,981 20,724,981 4/1/2034 3,852,934 3 ,852,934
10/1/2034 17,810,000 3 .072% 3,852,934 21,662,934 4/1/2035 3,579,372 3 ,579,372
10/1/2035 19,120,000 3 .703% 3,579,372 22,699,372 4/1/2036 3,225,365 3 ,225,365
10/1/2036 20,555,000 3 .703% 3,225,365 23,780,365 4/1/2037 2,844,790 2 ,844,790
10/1/2037 22,060,000 3 .703% 2,844,790 24,904,790 4/1/2038 2,436,349 2 ,436,349
10/1/2038 23,645,000 3 .703% 2,436,349 26,081,349 4/1/2039 1,998,562 1 ,998,562
10/1/2039 25,310,000 3 .703% 1,998,562 27,308,562 4/1/2040 1,529,947 1 ,529,947
10/1/2040 26,590,000 3 .803% 1,529,947 28,119,947 4/1/2041 1,024,338 1 ,024,338
10/1/2041 19,535,000 3 .803% 1,024,338 20,559,338 4/1/2042 652,880 6 52,880
10/1/2042 19,450,000 3 .803% 652,880 20,102,880 4/1/2043 283,038 2 83,038
10/1/2043 14,885,000 3 .803% 283,038 15,168,038 Total 349,515,000$ 1 72,137,247$ 521,652,247$ 238

225
Lease Revenue Bonds Series 2021

Date Principal Interest Rate Interest Debt Service
12/1/2021 664,606$ 664,606$
6/1/2022 529,332 529,332
12/1/2022 529,332 529,332
6/1/2023 1,445,000 0.408% 529,332 1,974,332 12/1/2023 526,384 526,384
6/1/2024 1,450,000 0.640% 526,384 1,976,384 12/1/2024 521,744 521,744
6/1/2025 1,465,000 1.181% 521,744 1,986,744 12/1/2025 513,093 513,093
6/1/2026 1,480,000 1.331% 513,093 1,993,093 12/1/2026 503,244 503,244
6/1/2027 1,495,000 1.708% 503,244 1,998,244 12/1/2027 490,477 490,477
6/1/2028 1,520,000 1.908% 490,477 2,010,477 12/1/2028 475,976 475,976
6/1/2029 1,555,000 2.187% 475,976 2,030,976 12/1/2029 458,972 458,972
6/1/2030 1,590,000 2.287% 458,972 2,048,972 12/1/2030 440,790 440,790
6/1/2031 1,625,000 2.487% 440,790 2,065,790 12/1/2031 420,583 420,583
6/1/2032 1,665,000 2.637% 420,583 2,085,583 12/1/2032 398,630 398,630
6/1/2033 1,705,000 2.837% 398,630 2,103,630 12/1/2033 374,445 374,445
6/1/2034 1,755,000 2.837% 374,445 2,129,445 12/1/2034 349,550 349,550
6/1/2035 1,805,000 3.279% 349,550 2,154,550 12/1/2035 319,957 319,957
6/1/2036 1,865,000 3.279% 319,957 2,184,957 12/1/2036 289,380 289,380
6/1/2037 1,925,000 3.279% 289,380 2,214,380 12/1/2037 257,820 257,820
6/1/2038 1,990,000 3.279% 257,820 2,247,820 12/1/2038 225,194 225,194
6/1/2039 2,060,000 3.279% 225,194 2,285,194 12/1/2039 191,420 191,420
6/1/2040 2,115,000 3.379% 191,420 2,306,420 12/1/2040 155,687 155,687
6/1/2041 2,190,000 3.379% 155,687 2,345,687 12/1/2041 118,687 118,687
6/1/2042 2,270,000 3.379% 118,687 2,388,687 12/1/2042 80,336 80,336
6/1/2043 2,340,000 3.379% 80,336 2,420,336 12/1/2043 40,801 40,801
6/1/2044 2,415,000 3.379% 40,801 2,455,801 Total 39,725,000$ 16,558,944$ 56,283,944$ 239

226
State Revolving Fund

Date Principal Interest Rate Interest Debt Service
6/30/2025 774,002 1.400% 44,052 8 18,054 6/30/2026 628,146 1.400% 189,908 8 18,054 6/30/2027 636,940 1.400% 181,114 8 18,054 6/30/2028 645,858 1.400% 172,196 8 18,054 6/30/2029 654,900 1.400% 163,154 8 18,054 6/30/2030 664,068 1.400% 153,986 8 18,054 6/30/2031 673,365 1.400% 144,689 8 18,054 6/30/2032 682,792 1.400% 135,262 8 18,054 6/30/2033 692,351 1.400% 125,703 8 18,054 6/30/2034 702,044 1.400% 116,010 8 18,054 6/30/2035 711,873 1.400% 106,181 8 18,054 6/30/2036 721,839 1.400% 96,215 8 18,054 6/30/2037 731,945 1.400% 86,109 8 18,054 6/30/2038 742,192 1.400% 75,862 8 18,054 6/30/2039 752,583 1.400% 65,471 8 18,054 6/30/2040 763,119 1.400% 54,935 8 18,054 6/30/2041 773,803 1.400% 44,251 8 18,054 6/30/2042 784,636 1.400% 33,418 8 18,054 6/30/2043 795,621 1.400% 22,433 8 18,054 6/30/2044 806,759 1.400% 11,295 8 18,054 Total 14,338,835$ 2,022,245$ 1 6,361,080$ 240

GLOSSARY
241

227
Glossary
Asset Contra Account – This account is used to offset expenses that are capitalized and thus treated as fixed assets in the City’s balance sheet. As such, this classification is an offset to expense for capital acquisitions and results in a net zero effect on operating activitie

s.

Assigned Fund Balance

–
Amounts that are constrained by the City ’s intent to be used for

specific

purpose.

Bad Debts and Other Losses

– This classification represents the noncash costs of writing off a receivable (asset) from the balance sheet and the noncash value lost below the book value (typically purchase price) for the sale of fixed assets or investments.

Balanced Budget – a balanced budget as a budget in which all sources meet or exceed the

adopted

appropriations resolution. In a given year, a planned use of fund balance (source) may be identified as a balancing measure though is not a preferred long

-
term solution over multiple years and should
be avoided for a recurring expenditure.

Capital Acquisitions

– This classification represents the asset purchases which are capitalized to the balance sheet but are budgeted for purchase requisition purposes and are offset by the corresponding contra classification to have a net zero effect on operating activities ( refer to Asset Contra Account). The expense is recognized in the depreciation and amortization classification when placed in use.

Capital Asset Condition –

Financial measure calculating the annual change in net asset value.

Charges for Services – This classification represents cash receipts from business -type activities.

Included in this classification are revenue from the Enterprise Funds, planning and zoning fees, inspection fees and internal service fees charged to city departments.

Debt Burden Ratio – Financial measure calculating long

-
term liabilities (excluding pension
obligation) as a percentage of revenues.

Debt Service – This classification represents the costs to issue debt, the principal and interest payments made on the borrowings and capital lease payments.

242

228
Debt Service Reimbursements – This classification is an offset to debt services costs to show a net zero effect on the statement of operations.

Depreciation and Amortization – This classification represents the noncash costs of fixed or intangible assets (buildings, utility, machinery and equipment, furniture and fixtures, vehicles, and infrastructure improvements) over its useful life.

Extraordinary Gain – This classification represents monetary value received greater than the book value (typically purchase price) for the sale of an asset or group of assets and is considered infrequent and unusual.

Extraordinary Loss –

This classification represents noncash value lost below the book value (typically purchase price) for the sale of an asset or group of assets and is considered infrequent and unusual.

Fines, Forfeitures and Penalties

–
This classification represents cash receipts from general fines, parking citations, and traffic fines.

Fund Balance – This is defined as the balance for a given fund of all assets minus all liabilities. Within fund balance the balance is broken into main categories such as Nonspendable, Restricted, Assigned, and Unassigned. When examining proprietary funds (i.e. internal service funds and enterprise funds) this is often referred to as net position. This can serve as a source in a year when expenditures would exceed budgeted reve

nues to balance the budget.

General Fund Reserve Ratio – Financial measure calculating the

Economic An
omaly Reserve
Balance

as a percentage of budgeted expenditures.

Interdepartmental Charges – This classification represents internal expense allocations across various funds and General Fund programs. This includes charges from the Self -Insurance Fund for worker’s compensation related administrative and insurance costs, from various General Fund programs to the Enterprise Funds for administrative costs (indirect costs) and from the Enterprise Funds to the General Fund for right-of

-
way franchise fees.

Intergovernmental – This classification represents cash funding received from state, federal and other municipalities.

243

229
Liabilities, Settlements & Insurance – This classification represents the costs of litigation, settlements, worker’s compensation and insurance premiums and deductibles.

Licenses, Fees, and Permits – This classification represents cash receipts from construction permits, building permits, animal licenses and fire permits.

Liquidity Ratio

–
Financial measure calculating the cash and investments as a percentage of liabilities.

Materials Reimbursements

–
This classification represents an offset to Materials, Supplies & Maintenance expense classification for a department or fund’s non -wage resources used by or transferred to another department or fund. The City has changed to directly charging departments and has discontinued the use of reimbursements in most departments.

Materials, Supplies & Maintenance – This classification represents non-wage costs for department operations and includes office supplies, construction materials, recreation program supplies, building maintenance, Fleet warehouse and labor charges and vehicle parts and replacement charges.

Net Operating Activity –

The excess or deficit of sources (revenues) less uses (expenditures).

Nonspendable Fund Balance

–
Amounts that cannot be spent because they are either not in spendable form (such as

inventories or prepaid amounts)
or legally or contractually required to

be
maintained intact.

Operating Transfers In

–
This classification represents contributions/transfers from other funds within the city.

Other Expenditures

–

This classification represents costs which are not classified under other areas and considered one-time in nature.

Other Financing Sources

–
This classification represents proceeds from bonds and tax revenue anticipation notes.

Other Operating Transfers Out

–
This classification represents contributions/transfers to other funds within the city.

244

230
Other Post - Employment Benefits (OPEB) Funded Status – Financial measure calculating the total plan assets as a percentage of plan liabilities.

Other Revenues – This classification represents cash receipts or funding which are not classified under other areas and considered one-time in nature (donations).

Parts, Fuel & Lubricants Contra

–
This account is used to offset expenses that are treated as inventory assets in the City’s balance sheet. As such, this classification is an offset to expense for Fleet warehouse parts and vehicle fuel and result in a net zero effect on operating activities.

Parts, Fuel & Lubricants Inventory Purchases

–
This classification represents Fleet warehouse
parts, vehicle fuel and lubricant costs which are classified as inventory assets on the balance sheet but are budgeted for purchase requisition purposes and are offset by the corresponding contra classificati

on to have a net zero effect on operating activities (refer to Parts, Fuel & Lubricants Contra).

The expense is incurred upon use of the inventory and recognized in the statement of operations.

Pension Funded Status – Financial measure calculating the total plan assets as a percentage of plan liabilities.

Pension Obligation Ratio – Financial measure calculating net pension liability and pension related debt as a percentage of revenues.

Professional/Contract Services & Utilities – This classification represents costs for third -party services and utilities. Included in this classification are software licenses, electricity, gas, and water.

Reimbursements-Indirect Costs

–

This classification represents the reimbursement received as a result of the indirect costs charged

by the
General Fund

to various funds receiving benefits
that
proportionately offset

administrative costs.

Restricted Fund Balance

–
Amounts that are

constrained by external parties
, laws or regulations to
be used for a specific purpose.

Salaries and Benefits Reimbursements

–
This classification represents an offset to expense for an employee’s resources used by another department or fund. The City has changed to directly charging funds and has discontinued the use of reimbursements in most departments.

245

231
Salaries and Employee Benefits – This classification represents costs from base wages, overtime, pension costs and employee benefits.

Self-Insurance Funded Status – Financial measure calculating the fund assets as a percentage of liabilities.

Stored Water Rights Contra

–
This account is used to offset expenses that are treated as inventory assets in the City’s balance sheet. As such, this classification is an offset to expense for payment of the replenishment assessment to convert or bank unused groundwater pumping right s to carryover storage.

Stored Water Rights Inventory Purchases

–
This classification represents costs for converting or
banking unused groundwater pumping rights to carryover storage. This is treated as an inventory asset of the City but is budgeted for purchase requisition purposes and is offset by the corresponding contra classification to have a net zero effect on operating activities (refer to Stored Water Rights Contra).

Structurally Balanced Budget

–

The City defines a structurally balanced budget as one where recurring revenue

meet or exceed recurring expenditure appropriation levels.

Taxes – This classification represents cash receipts from levied taxes and includes sales tax, property tax, business license tax, utility users’ tax and franchise fees.

Training, Travel & Membership Dues

–
This classification relates to costs incurred from employee training, tuition reimbursement, continuing education, out of town travel and professional membership dues.

Use of Money and Property

–

This classification represents cash receipts from rental income on city property, change in market value from investments and accrued interest.

Unassigned Fund Balance

–
Unassigned Fund Balance is the residual classification for the general fund, and it represents available spendable resources not classified in the other

categories
of Fund
Balance.

Unfunded Accrued Liability

–
In a defined benefit pension plan, unfunded accrued liability (UAL) is the difference between the

a
ctuarially determined estimated cost of future benefit and the assets that have been set aside to pay for those benefits.
246

232

Water Supply Costs

–

This classification represents costs for water supply (i.e. groundwater and desalinated water) provided by the West Basin Municipal Water District, the Metropolitan Water District, and the Water Replenishment District.

247

233
Acronyms
Air Quality Management District (AQMD) – The California Air Resources Board’s regional partners that are responsible for regional air quality planning, monitoring, and stationary source and facility permitting.

Annual Comprehensive Financial Report (ACFR) – An annual set of financial statements that reports the financial condition of the City in accordance with Generally Accepted Accounting Principles as set forth in pronouncements of the Governmental Accounting Standards Board.

Americans with Disabilities Act (ADA) – A federal civil rights law that prohibits discrimination against people with disabilities in everyday activities.

Basic Life Support (BLS) – Generally refers to the type of care that first -responders, healthcare providers and public safety professionals provide to anyone who is experiencing cardiac arrest, respiratory distress or an obstructed airway.

Business Improvement District (BID) – A unique funding tool which allows property owners in a specific boundary to pool their financial resources by assessing themselves to pay for certain district- wide activities and improvements that are above and beyond what the city pays for. These improvements are decided on and managed by a non-profit board made up of a majority of property owners within the district.

California Air Resources Board (CARB) – The lead agency for climate change programs and oversees all air pollution control efforts in California to attain and maintain health-based air quality standards.

California Employers’ Pension Prefunding Trust (CEPPT) – A multiple employer tax exempt Trust organized under Section 115 of the Internal Revenue Code dedicated to prefunding employer contributions to defined benefit pension systems for eligible California public agencies.

California Employers ’ Retiree Benefit Trust (CERBT) – A multiple employer tax exempt Trust organized under Section 115 of the Internal Revenue Code dedicated to prefunding Other Post - Employment Benefits for all eligible California public agencies.

248

234
California Society of Municipal Finance Officers (CSMFO) – A statewide organization serving all California local government finance professionals through innovation, collaboration, continuing education and professional development.

Capital Improvement Plan (CIP) – A financial plan for the acquisition, expansion or rehabilitation of land, buildings, and other major infrastructure.

Certificate of Participation (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues.

Community Development Department (CDD)

–
The City of Torrance’s Community Development
Department.

Consumer Confidence Index (CCI) – Measures consumer sentiment about the current conditions of the economy as well as how they feel about where it is headed based on surveys conducted by the Conference Board.

Consumer Price Index (CPI) – A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Defined-Benefit (DB)

–
Refers to a retirement plan that provides a fixed, pre

-
established benefit for
employees at retirement.

Del Amo Fashion Center (DAFC)

–

The South Bay’s premier retail destination (and one of the largest shopping malls in America) with three levels of luxury shopping, more than 200 stores and numerous dining options.

Emergency Medical Services (EMS) – A system that responds to emergencies in need of highly skilled pre-hospital clinicians.

Employer Paid Member Contribution (EPMC) – The share of an employee’s contribution toward a retirement plan that an employer pays on the employee’s behalf.

Fiscal Year (FY)

–
A consecutive 12 -month period that an organization uses for accounting, budgeting, and financial reporting purposes. The City of Torrance’s fiscal year begins July 1 and ends the following June 30. For example, FY 202

6 -27

or FY

26 -
27 is the time period beginning July 1,

202
6,
and ending June 30,

202

7 .
249

235
Full-Time Equivalent Employee (FTE) – The total hours of service for which the employer pays wages to an employee during the year (but not more than 2,080 hours) divided by 2,080 hours.

Gross Domestic Product (GDP) – The value of all goods and services produced by an economy each year (not controlling for inflation).

Ground Emergency Medical Transportation (GEMT) – Provides public providers with supplemental payments for providing ground emergency medical transport services.

Government Finance Officers Association (GFOA) – A professional association of approximately 19,000 state, provincial, and local government finance officers in the United States and Canada.

Geographic Information Systems (GIS) - A computer-based tool used to collect, store, analyze, and display spatial data.

Information Technology (IT) –

The City of Torrance’s Information Technology Department.

Memorandum of Understanding (MOU) –Formal, but non-binding, agreement between two or more parties that outlines their intentions, goals, and roles in a cooperative effort.

Other Post Employment Benefits (OPEB) – Refers to benefits, other than pensions, that an employer provides to its employees after they retire. These benefits can include retiree health insurance, life insurance, and other healthcare benefits,

Public Agency Retirement Services (PARS) – A retirement plan for public employees, often offered as an alternative to traditional social security.

Public Education Grant (PEG) – Access channels, local cable TV channels that are made available to the community through a percentage of revenue from local cable providers.

California Public Employees’ Pension Reform Act (PEPRA) – A law passed in 2013 that changed how public employee pensions are calculated and administered in California.

California Public Employees’ Retirements Systems ( CalPERS or PERS) – A state-level retirement plan for public employees

and the nation’s largest public pension fund.

250

236
Recognized Obligation Payment Schedule (ROPS) – Used in California redevelopment agencies to outline enforceable obligations and their payment sources.

Regional Transit Center (RTC) –

Multi
-modal transportation hub.

Torrance Municipal Code (TMC) –

The City of Torrance’s Municipal Code.

Torrance Police Department (TPD) –

The City of Torrance’s Police Department.

Utility Users’ Tax (UUT) – A usage tax on communication, electric, and gas charges billed to a billing or service address.

Vehicle License Fee (VLF) – A fee on the ownership of a registered vehicle in California, in place of taxing vehicles as personal property.

251

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TORRANCE, CALIFORNIA ESTABLISHING THE ANNUAL
APPROPRIATION FOR THE SECOND FISCAL YEAR (2026-27)
OF THE CITY’S 2025-2027 OPERATING BUDGET

WHEREAS, the City Manager of the City of Torrance, in accordance with the provisions of the City Charter, does hereby submit to the City Council for the fiscal year 2026-27 a City operating budget which consists of:

WHEREAS, the City Council set May 5, 2026, May 19, 2026 and June 9, 2026 as the dates for the public budget hearing on the proposed City budget, and adopted the City budget on June 9, 2026;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TORRANCE, CALIFORNIA does hereby resolve the following:

Fund Type Fund Name 2026-27
General Fund General Fund-Operating Fund 324,433,802 $
General Fund General Fund-Measure SST 27,279,846 $
General Fund General Fund -Restricted 12,387,318 $
General Fund General Fund-Assigned 4,563,239 $
Nonmajor Governmental Funds AQMD Fund 181,142 $
Nonmajor Governmental Funds Debt Service Fund 24,154,567 $ Nonmajor Governmental Funds Low Mod Fund 47,159 $
Nonmajor Governmental Funds Meadow Park Parking Lot District 34,860 $ Nonmajor Governmental Funds Section 8 Housing 9,003,534 $ Nonmajor Governmental Funds Street Lighting Fund 1,968,915 $ Nonmajor Governmental Funds Traffic Safety Fund 55,000 $ Nonmajor Governmental Funds Vanpool Fund 179,314 $
Enterprise Funds Airport Fund 6,436,529 $
Enterprise Funds Sanitation Fund 20,048,040 $
Enterprise Funds Sewer Fund 5,093,096 $
Enterprise Funds Transit Fund 49,076,346 $
Enterprise Funds Water Fund 57,024,801 $
Internal Service Funds Fleet Services Fund 14,652,424 $ Internal Service Funds Self-Insurance Fund 26,764,266 $ Fiduciary Funds Redevelopment Agency Fund 1,158,253 $
Total Operating Budget Expenditures 584,542,451 $
Other Funds as a Source to Operating Budget Fund Name 2026-27 Nonmajor Special Revenue Funds Proposition A Fund 4,500,000 $ Nonmajor Special Revenue Funds Proposition C Fund 114,136 $ Nonmajor Special Revenue Funds Gas Tax Fund 3,311,595 $ 252
ATTACHMENT 2

SECTION 1
That the City Manager’s proposed General Fund Operating Fund Budget, General Fund Measure SST Budget, General Fund Restricted Budget, General Fund Assigned Budget, Air Quality Management District (AQMD) Fund Budget, Debt Service Fund Budget, Low Mod Fund Budget, Meadow Park Parking Lot District Fund Budget, Section 8 Housing Fund Budget, Street Lighting District Fund Budget, Traffic Safety Fund Budget, Vanpool Fund Budget, Airport Fund Budget, Sanitation Fund Budget, Sewer Fund Budget, Transit Fund Budget, Water Fund Budget, Fleet Services Fund Budget, Self-Insurance Fund Budget, Redevelopment Agency Fund Budget, Proposition A Fund Budget, Proposition C Fund Budget, and Gas Tax Fund Budget, and expenditures authorized inclusive of specific items as set forth in Section 1 of this Resolution, and as now on file with the Finance Director, be and hereby are adopted.

SECTION 2
That the City Manager may make any adjustments within the total operating budget allocations as deemed desirable and necessary during the fiscal year in order to meet the City’s needs, goals and objectives. However, the funds allocated by the City to each fund of the City are to be used solely for the purposes associated with that fund and formal legal action by City council is required to redirect such funds to another purpose. Further, the City Manager is granted authority to appropriate additional funds as necessary to meet the needs, goal, and objectives of the City under City Council Policy 3. The City Manager is hereby delegated authority to designate the unassigned fund balance of the General Fund to specified purposes that reflect the plans and intentions of the City.

INTRODUCED, APPROVED, AND ADOPTED this 9th day of June 2026.

_________________________
Mayor George K. Chen

APPROVED AS TO FORM:

PATRICK Q. SULLIVAN, City Attorney

by
Tatia Y. Strader, Assistant City Attorney
ATTEST:

Rebecca Poirier
City Clerk

253

RESOLUTION NO.

202

6 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TORRANCE, CALIFORNIA

,

ESTABLISHING THE ANNUAL
APPROPRIATION FOR THE FISCAL YEAR 202

6 -27 OF THE
CITY’S 2026-

20 31 CAPITAL BUDGET

WHEREAS, the City Manager of the City of Torrance, in accordance with the provisions of the City Charter, does hereby submit to the City Council for the

f
iscal y

ear 202

6 -27 a City
capital budget which consists of:

SECTION 1
That the City Manager may make any adjustments to individual project budgets within the total capital budget allocations as deemed desirable and necessary during the fiscal year in order to meet the City’s needs, goals and objectives.
2027-28 2028-29 2029-2030 2030-2031
Funding Source 2026-27 (Information Only) (Information Only) (Information Only) (Information Only) Airport Capital Project Fund 6,107,540$ 2,120,210$ 1,132,520$ 250,000$ 250,000$ AQMD 225,000$ -$ -$ -$ -$ Asset Forfeiture 415,000$ -$ -$ -$ -$ CDBG Fund 683,333$ 683,333$ 683,333$ 683,333$ 683,333$ Developer Contribution -$ 1,000,000$ -$ -$ -$ DIF - Police (170,000)$ -$ -$ -$ -$ DIF - Storm Drain 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ DIF - Utility Underground 450,000$ 450,000$ 450,000$ 450,000$ 50,000$ Fleet Services Capital Fund 702,768$ 1,500,000$ -$ 275,000$ 2,750,000$ Gas Tax 1,340,000$ 750,000$ 750,000$ 750,000$ 750,000$ General Fund 7,579,044$ 5,611,200$ 5,646,947$ 6,559,065$ 5,607,239$ GRANT 1,391,000$ 850,000$ -$ -$ -$ Measure A 3,300,000$ 5,000,000$ -$ 1,700,000$ -$ Measure M Grant -$ 52,550,000$ -$ -$ -$ Measure M Local Return 3,050,000$ 2,550,000$ 2,550,000$ 2,350,000$ 2,350,000$ Measure R Local Return 3,345,525$ 2,637,500$ 1,980,000$ 2,575,000$ 2,575,000$ Measure SST Fund 5,567,423$ 9,787,000$ 7,353,605$ 7,483,298$ 8,715,385$ Measure W 1,505,000$ 7,405,000$ 1,255,000$ 1,255,000$ 1,255,000$ Measure W Grant 7,100,000$ 4,884,402$ 256,000$ -$ -$ Other Grants 5,322,298$ 4,288,073$ -$ -$ -$ Park Equipment Replacement Fund -$ -$ -$ 250,000$ -$ Parks & Rec Facilities Fund -$ 500,000$ -$ -$ -$ Parks & Rec Open Space Fund -$ 1,000,000$ -$ 1,500,000$ 145,000$ PEG Fund Capital 150,000$ -$ -$ -$ -$ Prop A Local Return (263)$ -$ -$ -$ -$ Prop C Local Return 3,150,000$ 3,150,000$ 2,900,000$ 2,900,000$ 2,900,000$ SB1 3,521,167$ 3,600,000$ 3,600,000$ 3,600,000$ 3,600,000$ Sewer Capital Project Fund 1,857,745$ 1,400,000$ 1,400,000$ 1,400,000$ 1,400,000$ TDA Article 3 Bicycle Fund 114,000$ 106,000$ 106,000$ 106,000$ 106,000$ Transit Capital Fund 1,725,000$ -$ -$ -$ -$ Water Capital Fund 2,950,000$ 8,400,000$ 4,000,000$ 2,800,000$ 200,000$ Total 61,481,580$ 120,322,718$ 34,163,405$ 36,986,696$ 33,436,957$ 254
ATTACHMENT 3

INTRODUCED, APPROVED AND ADOPTED this 9th day of June 20 2 6.

_________________________
Mayor George K. Chen

APPROVED AS TO FORM:

PATRICK Q. SULLIVAN, City Attorney

by
Tatia Y. Strader, Assistant City Attorney
ATTEST:

Rebecca Poirier
City Clerk

255
RESOLUTION NO. XX.XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TORRANCE, CALIFORNIA, ESTABLISHING THE ANNUAL

APPROPRIATION LIMIT AND SELECTION OF THE ANNUAL
ADJUSTMENT FACTORS FOR FISCAL YEAR 2026-27
WHEREAS, the

voters
of the State of California on November 6, 1979, added Article XIIIB to the State Constitution, placing various limitations on the appropriations of the State and local governments; and
WHEREAS, in June 1990, the voters of the State of California approved Proposition 111, permitting entities of government to select alternative growth factors by a recorded vote of its governing body; and
WHEREAS, the City of Torrance has complied with all the provisions of Article XII 18, as amended by Proposition 111, in determining the appropriations limit for fiscal year 2026-27; and WHEREAS, all calculations for fiscal year 2026-27 were necessary to arrive at an accurate limit; and
WHEREAS, all calculations necessary to arrive at the appropriations limit for fiscal year 2026-27 are attached as Exhibit A;
NOW, THEREFORE, the City Council of the City of Torrance does hereby resolve that:
(1) It selects the following growth factors for fiscal year 2026-27 Population Factor
{9M
-0.47%
Price Factor
(Change in State per Capita
Personal Income)

4.95%
(2) It accepts the appropriations limit for fiscal year 2026-27 in the amount of $5,944,400,799.

INTRODUCED, APPROVED, and ADOPTED this 9th day of June, 2026.

APPROVED AS TO FORM:

PATRICK Q. SULLIVAN, City Attorney
by _____________ _
Tatia Y. Strader,
Assistant City Attorney
Mayor George K. Chen
ATTEST:

City Clerk Rebecca Poirier, MMC
256
ATTACHMENT 4
Exhibit A
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275

AFFIDAVIT OF POSTING
STATE OF CALIFORN¡A

COUNTY OF LOS ANGELES

CITY OF TORRANCE
l, Robert Williams, in compliance with Government Code 5a95a.2@) DO HEREBY AFFIRM that a copy of the Notice of Determination for the Fiscal Year 2026-27 Appropriations Limit was
conspicuously posted on the City Clerk's bulletin board, 3031 Torrance Boulevard, Torrance, California at the time and date indicated below.

POSTED
Time: 2:10 p.m. Date: 5122126
SS
)
)
)
By
276
ATTACHMENT 5
ATTACHMENT 6

MATERIALS AVAILABLE
277
PROPOSED FISCAL YEAR 2026-27

OPERATING BUDGET &

CAPITAL IMPROVEMENT PLAN
9B
278
ATTACHMENT 7

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 28th)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 2 279

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
3 280

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
4 281

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
5 282

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
6 283

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
7 284
• 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
8 285

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
9 286

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
10 287

BUDGET OUTLOOK
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 11 Impacts FY24-25+ contributions
288
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
289

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 13 290

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 14 291

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
2 292

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
FY24-25
General 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 293
• 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 17 294

ECONOMIC INDICATORS
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Federal Funds Rate
Consumer Price Index
Real Gross Domestic Product
Labor Market Trends
18 295
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
296
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
20 297
• 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 298
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
22 299
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
300

CITYWIDE REVENUES BY FUND CLASSIFICATION
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 24 301

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
3 302

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
303
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 304

CITYWIDE EXPENDITURES BY FUND CLASSIFICATION
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 28 305
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
3 306
● 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
30 307

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
308

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
32 309

COMMUNITY SERVICES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Additions
• +1.0 FTE Landscape Architect
Staffing Level Changes: Net +1.00 FTE
33 310

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
34 311

GENERAL SERVICES
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Reductions
• -

1.0 FTE
Accounting Technician
Staffing Level Changes: Net - 1.00 FTE
35 312

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
36 313

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
37 314
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
38 315
• 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
39 316
• 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
40 317

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$

318
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
42 319
• 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
43 320

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 44 321

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 45 322

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
3 323
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
324
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
325

CAPITAL IMPROVEMENT PLAN SUMMARY
Madrona Ave Median Project (Carson to Opal)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 49 326

CAPITAL IMPROVEMENT PLAN SUMMARY
Hawthorne Blvd Median Project (Del Amo to Halison)
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 50 327

CAPITAL IMPROVEMENT PLAN SUMMARY
Cabrillo Ave Median Project
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 51 328

CAPITAL IMPROVEMENT PLAN SUMMARY
Ballast Rock Installation: Phase 2
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 52 329

CAPITAL IMPROVEMENT PLAN SUMMARY
Downtown Signage
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 53 330

CAPITAL IMPROVEMENT PLAN SUMMARY
City Hall Renovation – Building & Safety
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 54 331

CAPITAL IMPROVEMENT PLAN SUMMARY
City Hall Renovation – Information Technology
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 55 332

CAPITAL IMPROVEMENT PLAN SUMMARY
Fire Station 1 – Department EOC
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 56 333

CAPITAL IMPROVEMENT PLAN SUMMARY
Hickory Park Restroom Renovation
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 57 334

CAPITAL IMPROVEMENT PLAN SUMMARY
Airport Restroom Renovation
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 58 335

CAPITAL IMPROVEMENT PLAN SUMMARY
Digital Signage
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 59 336

CAPITAL IMPROVEMENT PLAN SUMMARY
Torrance School Safety & Accessibility Program (Fern/Seaside) FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 60 337

CAPITAL IMPROVEMENT PLAN SUMMARY
New Signal: Lomita/Madison
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 61 338

CAPITAL IMPROVEMENT PLAN SUMMARY
City Hall Landscaping
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 62 339

CAPITAL IMPROVEMENT PLAN SUMMARY
Southeast Library Landscaping
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 63 340
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
64 1
2 3
4 FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 341

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
.
65 342

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
.
66 343

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
67 344
68 345
PROPOSED FISCAL YEAR 2026-27

OPERATING BUDGET &

CAPITAL IMPROVEMENT PLAN
9A
BUDGET HEARING #2
346
ATTACHMENT 8
FISCAL YEAR 2026-27 PROPOSED BUDGET
Budget Review Team Meeting #1 – November 12 , 202 5
City Council provided direction on budget priorities – December 16

, 202

5 Budget Review Team Meeting #2 – April 15, 2026
Public Hearing #1 – May 5

, 202

6 FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET Actions Taken to Date:
2 347
• City Clerk Operating Budget
• Building Index Study - Four Critical Assets
• Digital Signage
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 3 Items requested on May 5th hearing:
348
• Completed a comprehensive analysis of Training, Travel, Memberships/Dues classification:
• $8,563: 12 months of activity (May 2025 - Apr 2026)
• $5,900: Commissioner Training for SB827 (50 @ $118)
• $2,610: Additional Memberships (noted on 5/5/26)
• $17,073: Subtotal of Costs
• $18,500: Proposed FY2026 - 27 Budget
• $1,427: Net Surplus/Buffer
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 4 City Clerk Budget
349
• The following assets were marked critical in Building Index Study • Wilson Park (Pumphouse - Picnic Shelter)
• Wilson Park (Animal Control Trailer)
• La Romeria Park (Storage Shed)
• McMaster Park (Park Building)
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 5 Building Index Study – Critical Assets
350
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 6 Building Index Study – Wilson
• Animal Control Trailer
• Scope/plan in development
• Multiple variables with
Building 8, Pickleball,
Monterey St lease
• Pumphouse
• Electrical components main
items needing replacement;
operating budget repair
focus
351
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 7 Building Index Study – La Romeria
• Cabinet housing electrical
for park; not public space
• Rehabilitation an operating
budget function in progress
352
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 8 Building Index Study – McMaster
• Park Buildings
• Cabinet housing electrical;
not public
• Storage shed; not public
• Rehabilitation of cabinet
housing electrical an operating
budget function in progress
• Storage Shed being removed
353
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 9 Digital Signage – South Torrance
• Pacific Coast Hwy/Zamperini Way
• Design: $19,200
• Construction: $175k
• Total Estimate: $200k; plus
contingency
354
FISCAL YEAR 2026-27 PROPOSED BUDGET
FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 10 Digital Signage – South Torrance
355
FISCAL YEAR 2026-27 PROPOSED BUDGET
11 Revise the Meadow Park Parking Lot Revenue budget to $45,860 (decrease of $4,140) and the expenditure budget to $34,860 (increase of $820); net surplus of $11,000 Reason:

Final Assessment

Item completed May 19, 2026

by CDD
Revise the Street Lighting District Revenue budget to $1,968,915 (increase of $50,665) and the expenditure budget to $1,968,915 (increase of $50,665); net surplus of $0 Reason:

Engineers Report

from
Public Works anticipated approval June 9, 2026
Revise the General Fund Operating Fund Revenue budget to $322,433,802 (increase of $1.1M) and the expenditure budget to $324,433,802 (increase of $1.1M) Reason:

Expedited Plan Check Fees

Anticipated Budget Adjustments:

FINANCE DEPARTMENT | PROPOSED FISCAL YEAR 2026 - 27 OPERATING BUDGET 11 356

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. Approve Appropriations Resolutions
June 9
May 19
12 357
13 358