TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Acting Finance Director
Julie Bondarchuk, Financial Controller
Emy-Rose Hanna, Budget & Financial Analyst
Marcelo Serrano, Grants & Financial Analyst
SUBJECT:Title
Conduct Public Hearing and Consideration of Resolutions Adopting the Fiscal Year 2026 Operating Budget and the Gann Appropriations Limit (Acting Finance Director Bretthauer).
(Estimated Time: 45 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NOS. 25-0074 AND 25-0075
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: (1) Conduct a public hearing; (2) Adopt Resolution No. 25-0074 adopting the Fiscal Year (FY) 2026 Operating Budget, including updated Financial Policies; and (3) Adopt Resolution No. 25-0075 establishing the Gann Appropriations Limit for FY 2026.
FISCAL IMPLICATIONS:
With the passage of Resolution No. 25-0074, the FY 2026 Budget will be adopted, as presented on May 6, 2025, and as amended during subsequent meetings, for the fiscal year commencing on July 1, 2025. As proposed and amended, the FY 2026 Budget includes Citywide revenues of $196,573,797 and Citywide expenditures totaling $193,168,297 across all funds.
The General Fund is structurally balanced with revenues of $125,419,718 and expenditures of $105,614,054, resulting in a projected year-end surplus of $19,805,664. However, this surplus includes anticipated bond proceeds of $13,221,000 to reimburse the General Fund balance for the acquisition of 400 Manhattan Beach Boulevard. Excluding these one-time funds, the revised surplus is estimated to be $6,584,664. This amount also includes the new 0.50% local transaction and use tax Measure MMB revenue, which is expected to generate $5.9 million annually. If this general tax measure had not been approved by voters, the operating surplus would be $641,664.
Revenue
$125,41...
Click here for full text