HomeMy WebLinkAboutRES-26-7561 (FY 26-27 BUDGET ADOPTION)
Page 1 of 4 RES-26-7561
CITY OF HERMOSA BEACH
RESOLUTION NO. RES-26-7561
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, ADOPTING THE FISCAL YEAR 2026–27 BUDGET;
APPROVING RELATED GENERAL FUND TRANSFERS AND ASSIGNMENTS;
AND MAKING FINDINGS REGARDING THE CITY'S FISCAL PLAN
WHEREAS, a budget for the Fiscal Year 2026–27 (“Budget”) has been
prepared by the City Manager; and
WHEREAS, the Budget incorporates expenditures for operating purposes,
capital outlay, and capital improvement projects; and
WHEREAS, the final Budget will include the appropriations limit and total
annual appropriations subject to limitation as required by Section 37200 of the
California Government Code; and
WHEREAS, the City continues to face ongoing fiscal challenges associated
with rising personnel costs, contractual obligations, infrastructure maintenance
needs, and capital improvement requirements; and
WHEREAS, City staff developed a balanced Budget through expenditure
reductions, operational efficiencies, deferral of certain equipment replacement
contributions, and reductions to planned reserve contributions while maintaining
reserve levels above recommended Government Finance Officers Association
best-practice guidelines; and
WHEREAS, the proposed Budget includes the transfer of two million, sixty-
nine thousand, eight hundred eighty-five dollars ($2,069,885) of unspent Fiscal
Year 2024–25 General Fund resources to the Capital Improvement Fund for future
Capital Improvement Program needs; and
WHEREAS, the proposed Budget further includes assignment of the
estimated remaining one million, two hundred ninety-five thousand, three
hundred thirty-eight dollars ($1,295,338) Fiscal Year 2026–27 General Fund surplus
to the assigned fund balance category pending future City Council review during
the Mid-Year Budget Review process; and
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WHEREAS, the City Council has examined the Budget and, after due
deliberation and consideration, has made such amendments to the Budget as it
deems advisable.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The recitals above are true and
correct, and are hereby incorporated herein by reference.
SECTION 2. Findings. The City Council hereby finds as follows:
a. Public Purpose. Adoption of the Budget serves a valid
public purpose by providing the financial framework necessary to fund municipal
operations, maintain essential public services, address infrastructure needs, and
implement City Council priorities.
b. Fiscal Sustainability. The Budget reflects a prudent and
fiscally responsible approach to addressing ongoing structural budget challenges
through expenditure reductions, operational efficiencies, and strategic allocation
of available financial resources.
c. Capital Improvement Funding. The transfer of two
million, sixty-nine thousand, eight hundred eighty-five dollars ($2,069,885) from
Fiscal Year 2024–25 General Fund actuals to the Capital Improvement Fund serves
a public purpose by supporting future Capital Improvement Program needs and
addressing the City's infrastructure obligations. Such investment in capital
infrastructure is necessary to preserve public assets, maintain service levels, and
reduce future maintenance liabilities; and allocation of one-time General Fund
resources for capital purposes constitutes an appropriate use of such funds and
promotes long-term fiscal sustainability.
d. Assignment of Surplus Funds. Assignment of the
projected Fiscal Year 2026–27 General Fund surplus to the assigned fund balance
category promotes sound fiscal management by preserving financial flexibility
pending review of actual revenues, expenditures, and operational needs during
the Mid-Year Budget Review process.
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e. Preservation of Surplus Funds. Preserving projected
surplus funds pending future review allows the City to evaluate actual fiscal
performance, emerging operational needs, reserve requirements, and capital
priorities before committing such funds to specific expenditures.
SECTION 3. Approval and Adoption. The City Council does hereby
approve and adopt the revised Budget as presented in the documents entitled
“City of Hermosa Beach Budget Summary 2026–27” as set forth in Exhibit A,
attached hereto and incorporated herein by reference.
SECTION 4. Approval of Related Fiscal Actions. The City Council hereby
approves the following:
a. Transfer of two million, sixty-nine thousand, eight
hundred eighty-five dollars ($2,069,885) of unspent Fiscal Year 2024–25 General
Fund resources to the Capital Improvement Fund for future Capital Improvement
Program needs.
b. Assignment of the estimated remaining one million, two
hundred ninety-five thousand, three hundred thirty-eight dollars ($1,295,338) Fiscal
Year 2026–27 General Fund surplus to the assigned fund balance category,
subject to future review and consideration during the Fiscal Year 2026–27 Mid-
Year Budget Review.
SECTION 5. California Environmental Quality Act ("CEQA"). The City
Council finds that adoption of the Budget and approval of the fiscal actions
authorized herein are not projects subject to CEQA pursuant to CEQA Guidelines
Section 15378(b)(4); and alternatively are exempt pursuant to CEQA Guidelines
Section 15061(b)(3) because it can be seen with certainty that there is no
possibility that the actions authorized by this Resolution may have a significant
effect on the environment.
SECTION 6. Severability. If any section or provision of this Resolution is for
any reason held to be invalid or unconstitutional by any court of competent
jurisdiction, or contravened by reason of any preemptive legislation, the
remaining sections and/or provisions of this Resolution shall remain valid. The City
Council declares that it would have adopted this Resolution, and each section or
provision thereof, regardless of the fact that any one or more section(s) or
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provision(s) may be declared invalid or unconstitutional or contravened via
legislation.
SECTION 7. Certification. The City Clerk shall certify to the passage and
adoption of this Resolution; cause the same to be entered among the original
resolutions of the City; and make a minute of the passage and adoption thereof
in the records of the proceedings of the City Council in the minutes of the meeting
at which time same is passed and adopted.
SECTION 8. Effective Date. This Resolution is effective immediately upon
adoption.
PASSED, APPROVED and ADOPTED on this 23rd day of June, 2026.
Mayor Mike Detoy
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________
Martha Alvarez Jason Baltimore
City Clerk Interim City Attorney
Docusign Envelope ID: C8AA9A03-DE38-8F7E-81D8-C247A8A6F6B1
City of Hermosa Beach
Projected Change in Financial Position
Fiscal Year 2026-2027
Fund # Fund
Beginning
Fund Balance
07/01/2026
Estimated
Revenues Transfers In
Labor
Costs
Operating
Appropriations
New
Capital
Appropriations Reductions
Supple-
mentals
Transfers
Out
Projected
Fund Balance
06/30/2027
General Fund
001 Unassigned -$ 58,106,815$ 361,054$ 32,190,363$ 25,740,438$ -$ (3,379,603)$ 340,656$ 2,280,677$ 1,295,338$
001 Assigned - FY23 Prop A Fund Exchange 382,472$ -$ -$ -$ -$ -$ -$ -$ -$ 382,472$
001 Assigned - FY25 Year End Stabilization 347,587$ -$ -$ -$ -$ -$ -$ -$ -$ 347,587$
001 Assigned - FY25 Year End Actuals to FY 27 2,069,885$ -$ -$ -$ -$ -$ -$ -$ 2,069,885$ -$
001 Assigned - Reserve for FEMA Claims 926,345$ -$ -$ -$ -$ -$ -$ -$ -$ 926,345$
001 Assigned - City Administrative Costs 175,112$ -$ -$ -$ -$ -$ -$ -$ -$ 175,112$
001 Assigned - Contingencies 10,647,370$ -$ -$ -$ 1,156,106$ -$ (1,156,106)$ -$ -$ 10,647,370$
001 Assigned - Retirement Trust 829,060$ -$ -$ -$ -$ -$ -$ -$ -$ 829,060$
001 Assigned - Compensated Absences 294,170$ -$ -$ -$ -$ -$ -$ -$ -$ 294,170$
001 Committed - In Lieu Fee/Parking Facility 404,600$ -$ -$ -$ -$ -$ -$ -$ -$ 404,600$
001 Nonspendable 1,102,048$ -$ -$ -$ -$ -$ -$ -$ -$ 1,102,048$
001 Restricted - CASp Fees 14,079$ 9,000$ -$ -$ -$ -$ -$ -$ -$ 23,079$
001 Restricted - General Plan 242,158$ 98,880$ -$ -$ 127,500$ -$ -$ -$ -$ 213,538$
001 Restricted - Chamber Marquee Donation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
001 Restricted - Sheldon Donation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
001 Restricted - Nuisance Abatement Restrooms 20,575$ -$ -$ -$ -$ -$ -$ -$ -$ 20,575$
001 Restricted - PEG Funds 256,469$ 40,000$ -$ -$ -$ -$ -$ -$ -$ 296,469$
001 Restricted - Section 115 Pension Trust 1,021,575$ -$ -$ -$ -$ -$ -$ -$ -$ 1,021,575$
Total General Fund 18,733,505$ 58,254,695$ 361,054$ 32,190,363$ 27,024,044$ -$ (4,535,709)$ 340,656$ 4,350,562$ 17,979,338$
Special Revenue Funds
105 Lighting & Landscaping Fund (2,611)$ 459,274$ 425,634$ 176,830$ 694,413$ -$ -$ -$ 11,054$ -$
115 State Gas Tax Fund 152,236$ 1,140,746$ -$ 57,159$ 150,000$ 725,000$ -$ -$ 350,000$ 10,823$
116 TDA 3 (Transportation Development Act) Fund -$ 81,255$ -$ -$ -$ 65,998$ -$ -$ -$ 15,257$
117 AB 939 Fund 185,298$ 69,151$ -$ -$ 24,500$ -$ (20,000)$ -$ -$ 249,949$
121 Prop A Open Space Fund (75,470)$ 18,000$ -$ -$ -$ -$ -$ -$ -$ (57,470)$
122 Tyco Fund 119,302$ 399,085$ -$ -$ -$ 515,000$ -$ -$ -$ 3,387$
125 Parks / Recreation Facility Tax Fund 68,285$ 143,122$ -$ -$ -$ -$ -$ -$ -$ 211,407$
140 CDBG Grant Fund 3,192$ 184,000$ -$ -$ -$ -$ -$ -$ -$ 187,192$
145 Proposition A Fund 447,185$ 512,154$ -$ -$ 175,800$ -$ -$ -$ -$ 783,539$
146 Proposition C Fund 712,182$ 443,224$ -$ 36,403$ 324,752$ 372,000$ -$ -$ -$ 422,251$
147 Measure R Fund 22,921$ 328,782$ -$ 3,835$ -$ 340,000$ -$ -$ -$ 7,868$
148 Measure M Fund (25,254)$ 359,730$ -$ -$ -$ 330,000$ -$ -$ -$ 4,476$
149 Measure W Fund 479,231$ 210,347$ -$ 24,923$ -$ 658,246$ -$ -$ -$ 6,409$
150 Local / State Grants Fund (250)385,940$ 381,152$ -$ -$ 381,152$ -$ -$ -$ -$ 385,940$
152 AQMD Fund 150,623$ 28,907$ -$ -$ 10,000$ -$ -$ -$ -$ 169,530$
153 Supple. Law Enforce. Services (SLESF) Fund 549,902$ 176,615$ -$ -$ 110,724$ -$ -$ -$ -$ 615,793$
157 FEMA / CAL OES Fund (651,475)$ -$ -$ -$ -$ -$ -$ -$ -$ (651,475)$
160 Sewer Fund 2,073,490$ 1,411,047$ -$ 469,250$ 526,531$ 1,988,997$ -$ -$ -$ 499,759$
161 Storm Drain Fund 1,342,291$ 95,547$ 700,000$ 519,470$ 467,101$ 521,754$ -$ -$ -$ 629,513$
170 Asset Seizure Fund 557,363$ 15,933$ -$ -$ 247,500$ -$ -$ -$ -$ 325,796$
180 Fire Protection Fund 16,473$ 4,670$ -$ -$ -$ -$ -$ -$ -$ 21,143$
190 RTI Undersea Cable Fund 158,572$ 275,878$ -$ 90,759$ -$ 340,000$ -$ -$ -$ 3,691$
191 RTI Tidelands Undersea Cable Fund 113,715$ 11,094$ -$ -$ -$ 120,000$ -$ -$ -$ 4,809$
Total Special Revenue Funds 6,783,391$ 6,749,713$ 1,125,634$ 1,378,629$ 3,112,473$ 5,976,995$ (20,000)$ -$ 361,054$ 3,849,587$
Debt Service Funds
201 Lease Revenue Bond Fund 40,857$ -$ 729,200$ -$ 729,400$ -$ -$ -$ -$ 40,657$
Exhibit A
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City of Hermosa Beach
Projected Change in Financial Position
Fiscal Year 2026-2027
Fund # Fund
Beginning
Fund Balance
07/01/2026
Estimated
Revenues Transfers In
Labor
Costs
Operating
Appropriations
New
Capital
Appropriations Reductions
Supple-
mentals
Transfers
Out
Projected
Fund Balance
06/30/2027
Total Debt Service Funds 40,857$ -$ 729,200$ -$ 729,400$ -$ -$ -$ -$ 40,657$
Capital Projects Funds
301 Capital Improvement Project (CIP) Fund 3,590,471$ 346,212$ 2,069,885$ 357,581$ -$ 2,043,175$ -$ -$ -$ 3,605,812$
301 CIP Fund - Reserved for City Yard -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
301 CIP Fund - Reserved for Capital Facilities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Capital Improvement Project Fund 3,590,471$ 346,212$ 2,069,885$ 357,581$ -$ 2,043,175$ -$ -$ -$ 3,605,812$
313 Greenwich Village Utility Undergrounding -$ 44,575$ -$ -$ -$ -$ -$ -$ -$ 44,575$
Total Capital Projects Funds 3,590,471$ 390,787$ 2,069,885$ 357,581$ -$ 2,043,175$ -$ -$ -$ 3,650,387$
Agency Funds
612 Beach Drive Reserve Fund 5,355$ 147$ -$ -$ -$ -$ -$ -$ -$ 5,502$
623 Greenwich Underground Reserve Fund 58,405$ -$ -$ -$ -$ -$ -$ -$ -$ 58,405$
624 Greenwich Underground Redemption Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Agency Funds 63,760$ 147$ -$ -$ -$ -$ -$ -$ -$ 63,907$
Internal Service Funds
705 Insurance Fund 2,847,866$ 4,769,164$ 425,843$ 267,695$ 4,775,178$ -$ -$ -$ -$ 3,000,000$
715 Equipment Replacement Fund (ERF)4,882,505$ 83,400$ -$ 259,068$ 1,525,841$ -$ (123,596)$ 306,605$ -$ 2,997,987$
715 ERF - Investment in Fixed Assets 2,789,447$ -$ -$ -$ -$ -$ -$ -$ -$ 2,789,447$
715 ERF - Designated Building Maintenance Funds 533,951$ 102,557$ -$ -$ 142,446$ -$ -$ -$ -$ 494,062$
715 ERF - Records Technology Fee 902,430$ 90,000$ -$ -$ 203,000$ -$ -$ -$ -$ 789,430$
Total Equipment Replacement Fund 9,108,333$ 275,957$ -$ 259,068$ 1,871,287$ -$ (123,596)$ 306,605$ -$ 7,070,926$
Total Internal Service Funds 11,956,199$ 5,045,121$ 425,843$ 526,763$ 6,646,465$ -$ (123,596)$ 306,605$ -$ 10,070,926$
Total 41,168,183$ 70,440,463$ 4,711,616$ 34,453,336$ 37,512,382$ 8,020,170$ (4,679,305)$ 647,261$ 4,711,616$ 35,654,802$
Exhibit A
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State of California )
County of Los Angeles ) ss
City of Hermosa Beach )
June 29, 2026
Certification of Council Action
RESOLUTION NO. RES-26-7561
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, ADOPTING THE FISCAL YEAR 2026–27 BUDGET;
APPROVING RELATED GENERAL FUND TRANSFERS AND ASSIGNMENTS;
AND MAKING FINDINGS REGARDING THE CITY'S FISCAL PLAN
I, Martha Alvarez, City Clerk of the City of Hermosa Beach, do hereby certify
that the above and foregoing Resolution No. RES -26-75 61 was duly approved and
adopted by the City Council of said City at its regular meeting thereof held on
the 23rd day of June 2026 and passed by the following vote:
AYES:MAYOR DETOY, MAYOR PRO TEMPORE KEEGAN, COUNCILMEMBERS
JACKSON, FRANCOIS, AND SAEMANN
NOES:NONE
ABSTAIN:NONE
ABSENT:NONE
________________________________
Martha Alvarez
City Clerk
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