CRET NESTORE DOTTEN
KELLY HONIG SUSAN MOSWEENEY BRAD HALPERN RAY PEARL NED E DAVIS Mayor Mayor Pro Tem Councilmember Councilmember Councilmember
MINUTES
Study Session Meeting of the City Council
May 14, 2025
CALL TO ORDER:
This Study Session meeting of the Westlake Village City Council was called to order by Mayor Pro Tem McSweeney on Wednesday, May 14, 2025 at 4:47 p.m., at 31200 Oak Crest Drive, Westlake Village.
ROLL CALL:
PRESENT: Councilmembers Pearl, Halpern, and Mayor Pro Tem McSweeney ABSENT: Councilmember Davis and Mayor Honig
Also Present: City Manager de Geus, City Attorney Boga, Assistant City Manager Wilson, Planning Director Asp, City Engineer Hughes, Assistant to the City Manager Mott, City Traffic Engineer Wessel, Public Works Manager Iverson, Accountant II Leeds, and Deputy City Clerk Kramer.
PUBLIC COMMENTS: None
STUDY SESSION:
FISCAL YEAR 2025-26 BUDGET STUDY SESSION - REVIEW OF THE
OPERATIONS BUDGET, CIP FUND POLICY AND FINANCIAL RESERVE POLICY
City Manager de Geus provided opening remarks with an overview of priorities and goals and reported the fiscal year (FY) 2025-26 Budget will fund projects that are aligned with fulfilling City Council and Strategic Plan goals, noting breakdown by division indicated that the largest budget expense remains designated to Public Safety. I
Assistant City Manager Wilson stated that on a Fund basis the budget totaled $27 million, with 64% or $17.2 million allocated to the General Fund and 36% or $9.8 million in Restricted Funds.
City Council Study Session Minutes
City of Westlake Village May 14, 2025 2
STUDY SESSION (continued):
Mayor Honig arrived at 5:00 p.m.
Ms. Wilson stated Citywide revenues are projected at $21.5 million with the largest three revenue sources remaining as Sales Tax, Property Tax and Transient Occupancy Tax (TOT) totaling 64% of all revenues. Restricted revenue will comprise 17% of anticipated revenues.
With regard to the General Fund, expenditure for personnel has assumed a staff complement of 15.5 positions, up one part-time position from last year for an additional Community Preservation Officer. She noted that the significant adjustment in this category is the increase in medical premium costs.
To augment staff's resources in establishing these projections, the City continues to leverage the services of consultants, Avenu Insight and Government Finance Services, due to their expertise in the local government sector. Mary De la Rosa, Avenu Insight, presented a 5-year sales tax forecast summary and outlined the primary points of the reasons for conservative growth. The forecast indicated a contraction in the next fiscal year compared to this year's budget estimate due to the growing divergence between consumption of goods and services, where consumer spending is shifting to consumption of services which are not subject to Sales Tax.
Matt Pressey, Government Finance Services, provided forecast summaries for Property Tax, Transient Occupancy Tax, and Investment Earnings. He reviewed the General Fund Five-Year and Ten-Year revenue and expenditure projections revealing expectations of slower growth and higher core inflation. He stated revenues are expected to exceed expenditures only in the two years of the next ten-year forecast.
Councilmembers expressed concern over the financial forecast, inquired about strategies to lower expenditures and increase revenue, challenges of escalating costs, and the importance of remaining prudent and conservative moving forward.
Councilmember Davis arrived at 5:18 p.m.
Assistant City Manager Wilson stated that General Fund revenues are estimated to increase by 3.86% to $17.8 million and continue to be rallied around Sales Tax, Property Tax and TOT which total 83% of Citywide revenues. She stated that there is a contraction in the Sales Tax forecast, while Property Tax and TOT are projected at the highest for their categories.
City Council Study Session Minutes
City of Westlake Village May 14, 2025 3
STUDY SESSION (continued):
Ms. Wilson reported the proposed General Fund budget of $17.2 million was an increase of $1.4 million when compared to this year's budget of $15.8 million. She discussed the major drivers behind this increase and noted that placing the proposed expenditures in context with supporting revenue, the proposed General Fund expenditures of $17.2 million will be under the projected General Fund revenue of $17.8 million by $629,000.
Finally, Ms. Wilson discussed the budget highlights under five benchmarks: which included: how the budget meets Council Goals, adjustments added or new programs, line items continuing from this fiscal year, line items that were removed, and the proposed budget's compliance with the City Council's reserve policy. The steps the Council has been steadily undertaking to strengthen the City's financial resilience were also highlighted.
City Council discussion included concern for the long-term financial forecast, continuing to strategize revenue enhancement options, and evaluation of the list of Budget Adjustment items.
The City Council thanked staff for the thorough draft budget proposal.
ADJOURNMENT:
Mayor Honig adjourned the meeting at 6:05 p.m. to the regular session scheduled for 6:30 p.m.
Кирупід
layor Honi
Attest:
Carol Kiane
Carol Kramer, Deputy City Clerk
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CALIFORN