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HomeMy WebLinkAboutFY 2025-2026 - Adopted BudgetADOPTED ANNUAL B U D G E T FISCAL YEAR 2025-2026 CITY OF MANHATTAN BEACH, CALIFORNIA CITY OF MANHATTAN BEACH FY 2026 ADOPTED BUDGET Adopted Version 6/03/2025- CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 3 TABLE OF CONTENTS INTRODUCTION ............................................................................................................................................................................................................... 7 ELECTED OFFICIALS & EXECUTIVE STAFF .......................................................................................................................................................... 8 CITY MANAGER'S BUDGET MESSAGE ................................................................................................................................................................ 11 CITY FACTS & FIGURES ........................................................................................................................................................................................ 17 DEMOGRAPHICS .................................................................................................................................................................................................... 18 ORGANIZATION CHART ........................................................................................................................................................................................ 23 BUDGET OVERVIEW ..................................................................................................................................................................................................... 25 EXECUTIVE OVERVIEW ........................................................................................................................................................................................ 27 FUND STRUCTURE ................................................................................................................................................................................................ 35 BASIS OF BUDGETING .......................................................................................................................................................................................... 39 BUDGET PROCESS ................................................................................................................................................................................................ 40 BUDGET TIMELINE ................................................................................................................................................................................................. 41 BUDGET AWARDS.................................................................................................................................................................................................. 42 FUND SUMMARIES ........................................................................................................................................................................................................ 45 SUMMARY OF CHANGES IN FUND BALANCE .................................................................................................................................................... 47 CITYWIDE REVENUES BY FUND & CATEGORY ................................................................................................................................................. 48 CITYWIDE REVENUE DETAIL BY FUND ............................................................................................................................................................... 51 GENERAL FUND REVENUES ................................................................................................................................................................................ 67 CITYWIDE EXPENDITURES ................................................................................................................................................................................... 73 GENERAL FUND EXPENDITURES ........................................................................................................................................................................ 81 DEPARTMENTS ............................................................................................................................................................................................................. 85 MANAGEMENT SERVICES DEPARTMENT .......................................................................................................................................................... 87 ELECTED OFFICIALS...................................................................................................................................................................................... 98 CITY MANAGER ............................................................................................................................................................................................ 102 COMMUNICATIONS & CIVIC ENGAGEMENT ............................................................................................................................................. 107 CITY CLERK ................................................................................................................................................................................................... 111 CITY ATTORNEY ........................................................................................................................................................................................... 115 FINANCE DEPARTMENT ...................................................................................................................................................................................... 119 FINANCE ADMINISTRATION ........................................................................................................................................................................ 129 ACCOUNTING................................................................................................................................................................................................ 133 REVENUE SERVICES ................................................................................................................................................................................... 136 PURCHASING ................................................................................................................................................................................................ 141 HUMAN RESOURCES DEPARTMENT ................................................................................................................................................................ 145 HUMAN RESOURCES ADMINISTRATION ................................................................................................................................................... 153 RISK MANAGEMENT .................................................................................................................................................................................... 157 PARKS & RECREATION DEPARTMENT ............................................................................................................................................................. 161 PARKS & RECREATION ADMINISTRATION ............................................................................................................................................... 173 RECREATION SERVICES ............................................................................................................................................................................. 177 SPORTS & AQUATICS .................................................................................................................................................................................. 181 CULTURAL ARTS .......................................................................................................................................................................................... 185 OLDER ADULTS ............................................................................................................................................................................................ 189 TRANSPORTATION ...................................................................................................................................................................................... 193 VOLUNTEERS ............................................................................................................................................................................................... 197 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 4 POLICE DEPARTMENT ........................................................................................................................................................................................ 201 POLICE ADMINISTRATION ........................................................................................................................................................................... 213 PATROL ......................................................................................................................................................................................................... 220 TRAFFIC SAFETY.......................................................................................................................................................................................... 225 ASSET FORFEITURES ................................................................................................................................................................................. 230 FIRE DEPARTMENT ............................................................................................................................................................................................. 233 FIRE ADMINISTRATION ................................................................................................................................................................................ 243 FIRE OPERATIONS ....................................................................................................................................................................................... 249 COMMUNITY RISK REDUCTION.................................................................................................................................................................. 253 EMERGENCY MEDICAL SERVICES ............................................................................................................................................................ 257 SUPPORT SERVICES ................................................................................................................................................................................... 261 COMMUNITY DEVELOPMENT DEPARTMENT ................................................................................................................................................... 267 COMMUNITY DEVELOPMENT ADMINISTRATION ..................................................................................................................................... 279 PLANNING ..................................................................................................................................................................................................... 283 BUILDING & SAFETY .................................................................................................................................................................................... 287 CODE ENFORCEMENT ................................................................................................................................................................................ 291 TRAFFIC ENGINEERING .............................................................................................................................................................................. 295 ENVIRONMENTAL SUSTAINABILITY .......................................................................................................................................................... 299 PUBLIC WORKS DEPARTMENT .......................................................................................................................................................................... 303 PUBLIC WORKS ADMINISTRATION ............................................................................................................................................................ 319 CIVIL ENGINEERING..................................................................................................................................................................................... 323 STREET MAINTENANCE .............................................................................................................................................................................. 329 BUILDING & GROUNDS MAINTENANCE .................................................................................................................................................... 332 STREET LIGHTING & LANDSCAPE ............................................................................................................................................................. 337 WATER ........................................................................................................................................................................................................... 340 STORM DRAIN............................................................................................................................................................................................... 345 SEWER ........................................................................................................................................................................................................... 349 PARKING FACILITIES ................................................................................................................................................................................... 353 FLEET MAINTENANCE ................................................................................................................................................................................. 359 INFORMATION TECHNOLOGY DEPARTMENT .................................................................................................................................................. 363 FIVE YEAR FORECAST ............................................................................................................................................................................................... 377 FORECAST OVERVIEW ....................................................................................................................................................................................... 379 FORECAST DETAILS ............................................................................................................................................................................................ 381 CAPITAL BUDGET SUMMARY ................................................................................................................................................................................... 393 SCHEDULE OF CAPITAL IMPROVEMENT PROJECTS ..................................................................................................................................... 395 SCHEDULE OF CAPITAL PURCHASES .............................................................................................................................................................. 401 APPENDIX .................................................................................................................................................................................................................... 403 MAJOR REVENUE SOURCES ............................................................................................................................................................................. 405 PERSONNEL CHANGES ...................................................................................................................................................................................... 409 FULL-TIME POSITION COUNT ............................................................................................................................................................................. 410 SCHEDULE OF ADMINISTRATIVE SERVICE CHARGES .................................................................................................................................. 415 CITY DEBT SERVICE & LEASE PAYMENTS ....................................................................................................................................................... 416 FINANCIAL POLICIES ........................................................................................................................................................................................... 421 BUDGET POLICIES ............................................................................................................................................................................................... 427 BUDGET ADOPTION RESOLUTION .................................................................................................................................................................... 431 GANN APPROPRIATIONS LIMIT RESOLUTION AND CALCULATION .............................................................................................................. 434 GLOSSARY ............................................................................................................................................................................................................ 437 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 5 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 6 ELECTED OFFICIALS CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 8 ELECTED OFFICIALS TERM ENDS Mayor November 2026 Mayor Pro Tem November 2026 City Councilmembers November 2028 November 2028 November 2028 City Treasurer Amy Thomas Howorth David Lesser Joe Franklin Nina Trieu Tarnay Steve S. Charelian Tim Lilligren November 2026 EXECUTIVE STAFF City Manager Talyn Mirzakhanian City Clerk Liza Tamura City Attorney Quinn M. Barrow Finance Director Libby Bretthauer Human Resources Director Lisa Jenkins Parks & Recreation Director Mark Leyman Police Chief Rachel Johnson Interim Fire Chief Michael Lang Interim Community Development Director Michael Codron Public Works Director Erick Lee Information Technology Director Miguel Guardado CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 9 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 10 CITY MANAGER'S BUDGET MESSAGE Honorable Mayor Howorth and Members of the City Council: It is my pleasure to introduce the Fiscal Year (FY) 2026 Adopted Operating Budget. This spending plan embodies our organizational values of integrity, transparency, and collaborative governance while reflecting on the City Council's commitment to providing exceptional municipal services. The budget balances fiscal sustainability with the imperative to safeguard our residents and maintain the essential services that define Manhattan Beach’s high quality of life. The development of this budget has been guided by the City Council’s priorities of public safety and core City services. Our community’s history of prudent financial decision-making has positioned us to preserve and enhance critical services even during challenging economic periods. This Adopted Budget strategically invests in our future, focusing on long-term fiscal stability while reinvesting in infrastructure, maintenance, and service levels that align with City Council initiatives. Through open communication and a transparent budget development process, we have created a budget that not only meets the immediate needs of our community but also establishes a strong foundation for continued excellence in municipal service delivery. The collaborative approach between staff, City Council, and the community has cultivated a spending plan that truly reflects our shared values and vision for Manhattan Beach. CITY COUNCIL WORK PLAN The City Council annually develops a Work Plan document that outlines significant priority projects and initiatives that require many hours of staff time, substantial financial resources with high community involvement, community interest, or impacts to City operations. The City Council Work Plan features priority levels on projects, funding sources and detailed descriptions. The Work Plan items are assigned priority level designations of critical, important, and normal. Currently, the City Council Work Plan encompasses 18 items spanning nine City departments. Funding to complete the Work Plan items is included in FY 2026 Budget as appropriate, however, many of the items are policy-oriented or exploratory for longer-term projects such as a new aquatics facility. PERFORMANCE MEASURES Performance management includes identifying, collecting, analyzing, and reporting of indicators that gauges the organization's effectiveness with service delivery to the public as well as internally, and how that performance compares with its targets or with peer organizations. More importantly, as a management tool, performance data is intended not as the end result, but rather as a means to improve decision-making and foster a more informed community. Annually, staff presents performance metrics for each major program within departments. The Government Finance Officers Association (GFOA) recommends that program and service performance measures be developed and used as an important component of long-term strategic planning and decision-making, as well as linked to governmental budgeting. Additionally, the International City/County Management Association (ICMA) provides standards for reporting processes, procedures, and presentations. These standards aid in fostering community trust while ensuring City performance remains on course. To that end, the City's Performance Measures reflect its budget goals, including fiscal responsibility, community engagement, safety & health of the community, and the delivery of outstanding municipal services. In addition to Performance Measures, each City department highlighted notable workload indicators and activities that have been accomplished in the prior calendar year of 2024. BUDGET PROCESS AND CIVIC ENGAGEMENT EFFORTS Our budget development process is anchored in the City's Financial Policies, which are reviewed annually and adopted concurrently with the City's Budget document each June. These policies serve as the compass for elected officials and staff in the financial management of the City, helping to maintain our long-term financial integrity and our prestigious AAA credit ratings with Standard and Poor's and Moody's. Financial Policies, presented in the Appendix of this document, comprehensively address fiscal integrity, reserves, civic engagement, revenues, financial reporting, and capital budgeting, as well as other standards. They provide essential guidance and continuity in the creation and implementation of the City's spending plan while referencing other adopted City policies such as the Budget Policies, Debt CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 11 Management and Disclosure Policy, and Unfunded Pension Liability Policy. True to our commitment to open communication and collaboration, civic engagement stands as a cornerstone of our budget process. In February 2025, we launched an online Budget Survey that ran from February 10 through March 31, 2025, garnering 678 responses from engaged community members. To achieve this, the City engaged in various activities including 1) sending multiple email notifications and social media postings promoting the survey, 2) placing signage around City facilities, parks and at the Farmer’s Market, 3) attending various in-person community group meetings for targeted outreach to established groups regarding the budget survey, and 4) utilizing a user-friendly survey platform through Microsoft Forms that was easily accessible by QR code through any mobile device or desktop computer. The survey focused on funding priorities for the General Fund and areas requiring most attention from elected officials and City administration. The results revealed that Manhattan Beach residents deeply value their community's character and safety, with strong preferences for enhanced public safety, improved infrastructure, and community-centered development that preserves our small-town feel. Following this robust community input phase, staff began preparing the Proposed Budget through detailed revenue projections and comprehensive internal reviews of all expenditure line items. We developed budget proposals for program changes, one-time projects, equipment needs, technological advancements, and staffing adjustments. These budget proposals were evaluated through the dual lens of community priorities and funding availability, creating a transparent framework for next year’s budget. In any case where a Proposed Budget did not have adequate funding availability, Departments were asked to reprioritize all budget requests based on the highest need to determine which expenditure line items would move forward in the Proposed Budget. This practice of reprioritization leads to budget savings and ensures that expenditures are aligned with community needs. Following these steps, the Finance Department works closely with all operating departments to prepare the Proposed Budget for City Council consideration. After the initial presentation of the Proposed Budget at a regular City Council meeting, the City usually has at least one special Budget Study Session meeting for detailed discussion and analysis. These public sessions provide additional opportunities for community feedback and Council direction. The entire collaborative process culminates with the Budget and Capital Improvements Plan adoption in June, representing the successful integration of community values, Council priorities, and sound financial management. FISCAL OUTLOOK The City's main General Fund revenue source, Property Tax, continues to grow with residential and commercial property values as a result of a tight market with low inventory and strong demand for sought-after amenities such as excellent schools and parks. Local sales activity was also reinvigorated in early 2025 after the tragic wildfires that impacted the greater Los Angeles area. Demand is expected to continue outpacing supply, which will continue driving prices higher. As a beach community and regional destination for fine dining and retail shopping, other key General Fund revenues of Sales Tax, Transient Occupancy Tax, and Business License Tax are dependent upon the local economy and travel/tourism industry. The City's biggest Sales Tax sector, general consumer goods, is projected to experience modest growth in FY 2026. Sales Tax from restaurants continues to be strong for both casual and fine dining. High occupancy rates at local hotels, motels and short-term rentals is driving Transient Occupancy Tax (TOT) higher, indicating strong demand in leisure and business travel, while regional special events (e.g. World Cup in 2026) will continue to attract visitors. All of these economic sectors contributed to increases in Business License Tax, which is calculated on gross receipts. In November 2024, voters passed Measure MMB, a 0.5% transactions and use tax. The additional tax, which went into effect on April 1, 2025, is projected to bring in about $5.9 million per year. With this new tax revenue boosting the General Fund surplus, additional transfers to the Capital Improvement Projects (CIP) Fund are planned for deferred maintenance and infrastructure projects. A comprehensive cost allocation plan and user fee study was completed in April 2025 to ensure City fees remain aligned with the cost to provide discretionary services such as plan checks and permits. The updated user fees are projected to recover an additional $1.0 million to offset General Fund expenditures. Additionally, the City raised Parking Citation penalties by $6 for most citations, and increased the late penalty by $7, thereby adding approximately $350,000 to General Fund revenues. These measures are anticipated to mitigate budgetary challenges caused by slowing revenue growth and rising costs. Although the City’s diversified revenue streams came back strong after the Covid-19 pandemic, slowing economic growth is expected over the next few years as a result of escalating uncertainty caused by federal policy decisions, such as implementing tariffs on imported goods. Tariffs have the potential to increase the cost of all goods and services, which will exacerbate inflationary pressures on the City’s operations and capital development plans. As a City, we rely upon our employees to provide exemplary municipal services, ensure the public safety of residents and visitors, and preserve the quality of life in our community. With the Memoranda of Understanding (MOUs) of four full-time labor associations expiring on June 30, 2025, the City began negotiating new agreements in February of this year. The Adopted Budget includes salary increases in line with new MOUs approved by the City Council on June 3, 2025, before the new fiscal year begins on July 1. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 12 The Adopted Budget also includes funding to pay known pension costs. Understanding the City’s current financial status with CalPERS involves several variables. The City pays an employer portion for current service costs, as well as unfunded accrued liability (UAL) payments that arise when CalPERS’ investment returns fall short of its assumed rate of return of 6.8% (i.e. the discount rate). Unfunded liabilities will continue to be an issue if CalPERS does not achieve investment returns of the discount rate or higher. Based on CalPERS’ most recent actuarial reports issued in July 2024, required UAL payments in FY 2026 will double to $2.0 million and future year projections indicate payments increasing up to $4.0 million in FY 2030. Addressing these costs will be challenging in future budget years, which is why maintaining the fiscal discipline to continue transferring funds into the Pension Trust Fund is critical. This practice began in 2021 after the City issued pension obligation bonds to address a UAL of $91 million and exchange escalating UAL payments with level debt service. Per City Council Policy, the “savings” of what would have been paid to CalPERS is transferred to the Pension Trust Fund. If CalPERS’ future investment returns exceed the discount rate, and the City’s UAL payments go down, the transferred funds will remain in the Pension Trust Fund and can only be used to offset pension costs in the future. Another budgetary challenge is emerging in the Insurance Reserve Fund. Claims expenses continue to increase due to several factors, including rising medical expenses, higher frequency and severity of incidents, and heightened litigation risk and related expenses. Insurance premiums are also escalating in a tough insurance market, which has been impacted by the increase in cybersecurity incidents and significant weather-related events across the country, including hurricanes, severe connective storms and wildfires. Overall, Insurance Reserve Fund expenditures are budgeted $2.5 million or 25.6% higher in FY 2026 than the prior year. These expenditures are paid for by allocation charges to other funds based on recent experience and actuarial funding estimates. In recent years, cost increases have exceeded budget estimates, and additional appropriations were needed. With costs escalating faster than the budgeted charge-outs, reserves were drawn down in FY 2023 ($1,044,242) and FY 2024 ($209,260). If predicted cost escalations come to fruition in FY 2025 and FY 2026, additional transfers from the General Fund will be needed to maintain the current policy reserve level of $7.0 million. Staff will return to the City Council with funding recommendations to close out FY 2025 during the FY 2026 first quarter update. In April 2025, the City made a long-term investment by acquiring 400 Manhattan Beach Boulevard, a key location on the main street in the heart of our Downtown. This investment is a unique development opportunity to revitalize a former bank site with potential revenue- generating uses that may include parking. Although the City initially paid cash for the $13.0 million purchase, bonds will be issued in August 2025 to replenish the General Fund balance while development plans for the site are finalized. This initial debt issuance for the purchase price will be refinanced in 2-3 years when construction on the permanent use is ready to begin. With our history of prudent planning and budgeting, diversified revenues, effective cost controls, and vision for the future, the City’s financial position is stable. The City's General Fund continues to maintain healthy reserves at 20% of operating expenditures, or about $21.1 million, which is greater than the GFOA recommendation of no less than two months (17%) of regular General Fund operating revenues or expenditures. The City Council has also set aside $4.0 million as an “Economic Uncertainty” reserve. In addition to these designated reserves, the General Fund's Unreserved Fund Balance is estimated at nearly $5.1 million at the end of fiscal year 2026, which may be drawn upon for one-time projects and initiatives or, if necessary, transfers to other funds. Even with a stable fiscal outlook, knowing the potential for budgetary challenges to arise with deteriorating economic conditions or escalating pension and insurance costs, staff proactively reprioritized $458,316 in expenditures to make way for higher community priorities in the FY 2026 Budget. Departments submitted a total of about $4.4 million in budget enhancement requests and $2.7 million was approved across all funds. In the General Fund, budget enhancements totaling nearly $1.0 million were offset by eliminating $404,049 in lower priority expenditures. Other budget enhancement requests submitted by departments were deferred or modified if funds were not readily available in FY 2026. SERVICE DELIVERY INVESTMENTS The FY 2026 Adopted Budget includes various service delivery investments that align with community priorities and organizational needs. The Budget maintains the same number of authorized full-time positions and reflects changes approved as part of the FY 2025 Mid-Year Budget Update on February 18, 2025, including one new full-time Accountant and two Public Works position reclassifications. To accurately align with operational needs, six additional position reclassifications are included in the Adopted Budget as well as some augmented part- time staffing support hours. A summary of the position recommendations are listed below by department along with the annual cost associated with each recommendation. Other service delivery investments include technology enhancements, equipment and consultant services where appropriate. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 13 Management Services Management Services is responsible for the general administration and operation of the City. In order to provide additional guidance and oversight to City operations, the Adopted Budget includes an upgrade of the vacant Assistant to the City Manager to Deputy City Manager (+ $95,928). This role will enhance the City's leadership capacity by overseeing key functions and managing high-priority projects, including strategic communication and coordination with staff, external partners, and the community. A downgrade of the Policy & Management Analyst classification to Senior Management Analyst (-$6,227) was also implemented to reflect current staffing needs. Finance Department The Finance Department supports all financial functions within the City and serves as the financial stewards to the community. In FY 2026, a vacant full-time Lead Account Specialist position was upgraded to Management Analyst to assist with contract and lease management and revenue analysis, thereby allowing the Revenue Services Supervisor to focus on operations and program development, customer service, and employee training (+$10,275). Human Resources The Human Resources Department supports the City's most valuable resource and strives to create a safe and collaborative working environment in which employees can maximize their potential. To assist with the City’s personnel efforts and various policy updates, an additional $45,000 has been included in part-time salaries. Legal services were increased by $90,000 for labor relation issues and labor negotiations in FY 2026. Parks and Recreation The Parks and Recreation Department, consisting of 21 full-time and over 100 seasonal and part-time staff, provides a wide variety of innovative, collaborative, and impactful recreational, cultural, and educational programs and services for all ages. To best support the City's robust programs and classes, additional funds for Ceramics Instructor contracts (+$52,400) are budgeted in FY 2026 and partially offset by additional revenues. Additionally, the FY 2026 Budget includes funds to purchase a replacement bus (+$500,000) for the Dial-A-Ride program, which utilizes Proposition A Local Return Funds from LA Metro. Police Department The Police Department’s mission is to protect life, liberty, and property while providing excellent service and developing problem-solving partnerships within the community. The Department operates under two Bureaus - Administration/Investigations and Field Operations and oversees four primary functions including Administration, Patrol, Traffic Safety and Asset Forfeiture/Grants. As part of a holistic evaluation of staffing needs, a Technology Specialist position is being moved from the Police Department to the Information Technology Department to allow for centralized IT management. The position realignment provides a unified and agile IT structure for a more cohesive service delivery, improves overall technology infrastructure management, and enhances organizational access to IT resources. Additionally, the Adopted Budget includes an upgrade of an Office Assistant to Administrative Assistant (+$616) in the Police Department’s Parking and Animal Control to reflect the workload and technical knowledge required for the program. Fire Department The Fire Department oversees all disaster readiness and response programs in an effort for the City to be prepared in the event of natural or man-made crisis situations. These preparedness efforts include, but are not limited to, preparing and implementing Emergency and mitigation plans, disaster and Emergency Operations Center (EOC) updates and training, public preparedness education, and ensuring adequate equipment and supplies. The Department is diligently working to help ensure the City appropriately and responsibly responds to all disasters and emergencies that require situational awareness, EOC support, mitigation plans, and cost recovery programs. Accordingly, additional funds have been budgeted to secure Cardiac Monitors (+$100,000), as well as to contract services for Emergency Medical Services (+$36,700). Community Development The Department continually strives to develop and implement long-term plans and policies to further the mobility and livability of the City, while also providing customer service to residents and businesses. The Environmental Sustainability Division guides and implements sustainability policies and programs through science and stewardship to protect the environment while creating a healthy and resilient community. To support the recently adopted Climate Action and Adaptation Plan (CAAP), the City is committed to completing a greenhouse gas emissions inventory every three to five years to track the City's emissions reductions. The last greenhouse gas emissions inventory CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 14 conducted by the City covered 2019 through 2021. In FY 2026, the City is committed to completing an updated greenhouse gas emissions inventory (+$20,000). To further support the City's environmental initiatives, staff will continue to support the Green Business Program and re-certify existing businesses and certify new businesses into the voluntary program. Public Works Public Works is responsible for the operation and maintenance of all public infrastructure located in the public right-of-way and City properties. In FY 2026, the Buildings and Grounds division will add two part-time maintenance workers (+$33,273 each) and purchase a mini-excavator (+$100,000). The additional staffing will increase the City’s capacity to provide consistent and timely upkeep of park facilities, ensuring clean, safe, and welcoming public spaces. In addition, the mini-excavator will improve efficiency in both the Utilities and Field Operations Division by increasing crew productivity, reducing manual labor, and expediting excavation tasks. This will allow for faster project completion and more responsive service delivery. To improve safety and infrastructure reliability, the City will implement grounding work (+$75,000) in the data centers and data rooms at City Hall and the Public Safety facility, ensuring network racks are properly grounded to protect staff and equipment from electric shock, lightning strikes, and electrical interference. Additionally, the lighting at the Mira Costa High School tennis courts (+$100,000) will be upgraded to address current visibility issues that pose safety concerns for instructors, students, and other players, enhancing both safety and usability during evening hours. The Adopted Budget includes an upgrade of a Utilities Technician to a Cross-Connection Control Specialist (+$9,434). With recent changes in California drinking water regulations which mandate that municipal water purveyors establish a formalized Cross-Connection Control Program, which is overseen and managed by a designated Cross-Connection Control Specialist. This role ensures compliance with State laws, safeguarding public health, and protecting the City of Manhattan Beach's water distribution system from potential contamination or backflow incidents. Information Technology Department Information Technology (IT) continues to strive for improved, reliable, and secure service delivery given the growing reliance on technology throughout the organization. Technology touches every aspect of day-to-day City operations, including end-user technology (i.e., desktops, laptops, and mobile devices), field computing/remote access, broadcasting/audio-video support, helpdesk, and after-hours support. The Information Technology budget includes the strategic transfer of the Technology Specialist from the Police Department to Information Technology for centralized IT management. The position realignment provides a unified and agile IT structure for a more cohesive IT service delivery, improves overall IT infrastructure management, and enhances organizational access to IT resources. The position will remain dedicated to supporting the IT service needs of the Police Department. Additionally, the department’s budget includes the upgrade for one Technology Systems Engineer to Senior Technology Systems Engineer (+$19,057) to reflect the increased complexity and importance of the City’s technology infrastructure. The Adopted Budget also includes enhancements to align funding with the City’s growing technology requirements. Items that are part of the Information Technology budget are as follows: Enterprise Resource Planning and Enterprise Planning and Licensing systems migration from on-premise to the cloud platform (+$191,000/partial funding); Enterprise Content Management system replacement including the data migration (+$100,000) and digital records addition of the City’s historical collection (+$10,000); network devices refresh (+$250,000); Audio- Visual (AV) upgrades to the Joslyn Center Auditorium and the Police/Fire Conference Room (+$100,000); Closed captioning addition for a City Commission (+$20,000); Boards and Commissions onboarding into the Meeting Management system (+$20,000); and additional features and optimizations for the Public Records Request system (+$10,000). FIVE YEAR FORECAST The City of Manhattan Beach is committed to strong stewardship of taxpayer dollars. Our top goals include financial transparency and long- term fiscal sustainability, including developing a responsive budget that delivers high quality services for our community and meets our goal of long-term fiscal sustainability. To assist with this effort, staff prepares projections for revenues and expenditures over the next five-year period as the budget is developed each year. Estimates for revenue and expenditure growth are derived using trend analysis, economic data and known future changes. The Forecast also projects fund balances including policy reserves and unreserved balances. Fund transfers are highlighted for easy identification of fund subsidies, such as in the Street Lighting and Landscape Fund, which is being subsidized by the General Fund. A $5.0 million transfer to the CIP Fund is included in FY 2026 for various parks and facilities projects, as well as debt service for the land acquisition of 400 Manhattan Beach Boulevard. Annual transfers to the Pension Trust Fund will also continue in FY 2026 per the Pension Liability Policy approved by the City Council in 2021. This transfer will total $3.2 million in FY 2026. Lastly, although higher assessments were approved in 2024, critical capital projects in the Storm Drain Fund require a funding transfer of $500,000 in both FY 2026 and FY 2027. Using the FY 2026 Budget as a base, growth factors are applied to fiscal years 2027 through 2030 in order to estimate revenues, expenditures, and fund balances over the upcoming five-year period. Decisions made for cost-controls, including pension cost reductions through the issuance of the POBs, have supported our goal of long-term financial sustainability. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 15 Although operational costs are covered, the Five-Year Forecast does show a lack of funding for significant capital improvement projects, such as rebuilding the Lot 3 Parking Structure and constructing the community’s vision at 400 Manhattan Beach Boulevard. Furthermore, these challenges are now compounded with rising costs due to high inflation. Debt financing will be required for these long-term investments in community infrastructure. CONCLUSION The budget document before you represents the culmination of a transparent, collaborative process that embodies our commitment to open governance and fiscal integrity. This comprehensive plan reflects the extraordinary effort from staff in every City department as well as meaningful engagement from community members who generously shared their priorities and perspectives. Their collective work has strengthened our financial planning and ensured alignment with community values. I am proud to note that the City's last adopted budget once again received awards from the California Society of Municipal Finance Officers and Government Finance Officers Association. These awards amongst our peers represent our commitment to the highest standards of public financial management. Complete copies of the Operating Budget are available for public review at City Hall in both the Finance Department and City Clerk's Office. The Budget is also available online at the City's website: www.manhattanbeach.gov/budget. I would like to express my sincere appreciation to every City employee who contributed to this year ’s budget development process. Their expertise, dedication, and commitment to public service have been instrumental in creating this thoughtful financial roadmap. I would like to extend a special recognition to the Finance Department team—particularly Libby Bretthauer, Marcelo Serrano, Emy-Rose Hanna and Julie Bondarchuk—who navigated complex and competing priorities with remarkable skill to produce this prudent and forward- looking spending plan for City Council consideration. Finally, Standard and Poor's last reaffirmation of the City's AAA credit rating in 2021 stands as a powerful validation of the City Council's judicious policy direction and guidance, and staff's dedication to managing Manhattan Beach’s fiscal health. I look forward to our continued collaboration as we implement this budget to serve the residents of Manhattan Beach with excellence and integrity. Respectfully submitted, Talyn Mirzakhanian City Manager CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 16 MISSION STATEMENT Our mission is to provide excellent municipal services, preserve our small beach town character, and enhance the quality of life for our residents, businesses and visitors. CITY FACTS & FIGURES Incorporated on December 2, 1912, Manhattan Beach encompasses 3.89 square miles, with 2.1 miles of beachfront and 40 acres of total recreational beach area. This community of “Sun, Sand and Sea” is located in the South Bay area of Los Angeles County, 19 miles from downtown Los Angeles, and is one of Southern California’s most desirable communities in which to work and live. Manhattan Beach is home to approximately 35,000 residents. The City offers residents a pleasant, peaceful, coastal living environment with easy access to all Los Angeles area amenities. Manhattan Beach is truly cosmopolitan, but maintains the warmth of a quaint small town, far removed from the stress of typical urban life. In addition to its popular coastline, the community is home to large numbers of tourist and family-oriented events, such as the Manhattan Open beach volleyball tournament, Pumpkin Races, and Holiday Fireworks to name a few. Manhattan Beach is a full-service General Law city operating under a council-manager form of government. The City Council consists of five members elected at large, each serving a 9 1/2 month mayoral rotation during their four year term. The City Council meets on the first and third Tuesdays of the month at 6:00 PM. The City operates with nine well-run departments, 354 full-time and approximately 190 part-time employees. The City prides itself in offering the highest level of services to its residents and maintains a AAA bond rating. Date of Incorporation: December 2, 1912 as a General Law City Form of Government: City Council - City Manager Full-Time Municipal Employees Authorized: 354 Public Safety: Two fire stations with 35 authorized sworn personnel; One police station with 72 sworn personnel Parks & Public Facilities: 2.1 miles of beach front 40 acres of recreational beach 928 foot long pier 54 acres of developed parks 21 acre parkway Nine hole golf course Two community centers Libraries: One Los Angeles County branch library Location: 19 miles southwest of downtown Los Angeles on the southerly end of Santa Monica Bay; 3 miles south of Los Angeles International Airport Business Mix (as of April 2025) Contractors 2,130 43% Services 1,314 27% Home Occupation 415 8% Retail 354 7% Professionals 333 7% Apartment Houses 223 5% Commercial Property 118 2% Miscellaneous 68 1% Total 4,955 100% Elevation: 120 feet above sea level Area: 3.89 square miles Climate: August is on average warmest month (Ave. High: 75°F; Ave. Low: 64°F); January is on average coolest month (Ave. High: 65°F, Average Low: 49°F); Average annual rainfall: 12.0 inches CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 17 TOTAL POPULATION 34,051 .2% vs. 2024 GROWTH RANK 2 out of 503 Municipalities in California DAYTIME POPULATION 40,889 Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates POPULATION BY AGE GROUP Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates * Data Source: State of California, Department of Finance, E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change - January 1, 2024 and 2025. Sacramento, California, May 2025 199 0 199 2 199 4 199 6 199 8 200 0 200 2 200 4 200 6 200 8 201 0 201 2 201 4 201 6 201 8 202 0 202 2 202 4 202 6 31k 32k 33k 34k 35k 36k 37k <5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 18 TOTAL HOUSEHOLDS 13,323 It is important to consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the tax base. * Data Source: American Community Survey 5-year estimates 23% higher than state average Family Households 60% 18% higher than state average Married Couples 59% 6% lower than state average Singles 22% 5% lower than state average Senior Living Alone 12% CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 19 Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living. HOUSEHOLD INCOME Above $200,000 49% 152% higher than state average Median Income 193,904 101% higher than state average Below $25,000 5% 58% lower than state average * Data Source: American Community Survey 5-year estimates Over $200,000 $150,000 to $200,000 $125,000 to $150,000 $100,000 to $125,000 $75,000 to $100,000 $50,000 to $75,000 $25,000 to $50,000 Below $25,000 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 20 HOUSING UNITS Housing Units 1-Unit Detached 10,207 (68.30%) 2-4 Units 2,003 (13.40%) 5+ Units 1,390 (9.30%) 1-Unit Attached 1,345 (9.00%) U.S. Census Bureau, 2023 American Community Survey Estimates CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 21 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 22 CITYWIDE ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 23 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 24 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 26 Looking at the budget on a fund-by-fund basis, the following summarizes each fund of the entire FY 2026 Budget and includes comparisons to the prior year adopted budget. Additional summary schedules of all revenues and expenditures are presented in the Summaries section of the budget document. GENERAL FUND Year-end projections for FY 2025 indicated that expenditures will exceed revenues by about $351,750 due to higher projected costs associated with Salaries & Wages, Employee Benefits, and Utilities categories. The General Fund balance on June 30, 2025, is projected to be $18.9 million after the acquisition of property located at 400 Manhattan Beach Boulevard (“400 MBB”) for $13.2 million in April 2025. This reduction in fund balance is temporary until anticipated bond proceeds reimburse the General Fund in the next fiscal year. Even with the temporary reduction in General Fund balance, the City is still exceeding the Government Finance Officers’ Association (GFOA) minimum recommendation of 17% of operational expenditures ($17.2 million). FY 2026 General Fund revenues are currently budgeted at $125,419,628 and Expenditures are budgeted at $105,580,229, resulting in an anticipated operating budget surplus of $19,839,399. However, General Fund revenues include anticipated bond proceeds of $13,221,000 for 400 MBB. Excluding this reimbursement, the general fund surplus for FY 2026 is $6,618,399. Considering expected transfers and policy reserves, the unreserved General Fund balance is projected to total $5.1 million on June 30, 2026. GENERAL FUND REVENUES: General Fund revenues are projected to be $125,419,628 in FY 2026, an increase of nearly $26.4 million (26.7%) from the FY 2025 Adopted Budget. The increase is mainly due to the one-time reimbursement of bond proceeds for 400 MBB, the new sales and transaction use tax Measure MMB, and increases in Property Taxes, Transient Occupancy Taxes, Sales and Other Taxes, Interest Earnings, and Charges for Services. Specific impacts on our key revenue sources include: Property Taxes: For FY 2026, Property Taxes are increasing as assessed values continue to rise based on higher home sale prices given low inventories and high demand, especially after the tragic Palisades and Eaton wildfires that recently displaced almost 13,000 households in the greater Los Angeles region. When excluding one-time bond proceeds in FY 2026, Property Tax receipts contribute 41.9% of General Fund revenue. Overall, Property Tax receipts are expected to increase 5.2% over the prior year budget to $47.0 million in FY 2026. Comparing this to the more recent FY 2025 mid-year projection, Property Taxes are estimated to increase $2.3 million or 5.1%. Our leading indicator for potential changes in property values is Real Estate Transfer Taxes, which is based on sales transactions. At this time, sales activity has increased from the previous year resulting in a FY 2025 year-end projection of $800,000. With mortgage rates expected to remain relatively high over the next year, sales activity is anticipated to stay at the current pace in FY 2026 resulting in Real Estate Transfer Taxes of $850,000. This data is closely monitored for impacts to our largest General Fund revenue source. Sales Tax: The City’s second largest General Fund revenue source (10.2% of total revenue excluding bond proceeds) has increased to $11.4 million, about $90,000 (0.8%) above the conservative prior year budget. The City’s most significant sales tax categories are General Consumer Goods and Restaurants/Hotels. In addition to our vibrant Downtown and North Manhattan Beach business districts, the Manhattan Village Mall was revitalized over the last few years with a 53,300-square-foot expansion called the Village Shops, which consists of curated open-air dining and retail space with a modern look. Several luxury shops and restaurants have since opened, creating an upscale and attractive shopping experience for visitors. Over the last several years, online sales continue to grow while point-of-sale tax revenues have been trending down in the State. Online sales result in the collected sales tax going into a countywide pool, which is then allocated based on the City’s share of point-of-sale taxes countywide. This trend towards online shopping is expected to continue, but with a strong brick-and-mortar base, the City will continue to receive a stable share from the County pool. Additionally, on November 5, 2024, Manhattan Beach voters approved Measure MMB, which is a one-half cent (0.5%) sales tax measure to support general City services including keeping local streets, sidewalks, infrastructure, and parks safe, clean, and well maintained; repairing/upgrading aging community facilities; fixing potholes; and improving parking availability and traffic safety. In FY 2026, Measure MMB is expected to generate $5,943,000 in new sales tax revenue that will be used locally to support on-going and critical capital improvement projects and related debt service. With this new revenue generating additional General Fund surpluses, funds can be transferred to the CIP Fund to support capital activities. Transient Occupancy Tax (TOT): Hotel, motel and short-term rental occupancy taxes are expected to generate approximately $9.0 million in General Fund revenue in FY 2026, approximately $434,000 (5.0%) more than the prior year budget. The budget for FY 2026 assumes occupancy rates will be steady over the coming months. The significant increase in TOT collected is the result of approximately 175 licensed CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 27 short-term rentals operating in the Coastal Zone as of June 2025. This revenue also affects the Capital Improvement Fund since 15% of the base 10% tax (approximately $1,084,000) is dedicated to that fund (the CIP amount is in addition to the $9.0 million expected in the General Fund). Business License Tax: Business License Tax in FY 2026 is expected to generate nearly $5.9 million, which is an increase of $650,000 (12.5%) over the prior year budget. The increased business license tax revenue factors the additional support, compliance activities and growth in the number of licensed accounts that are anticipated through the recent partnership with HDL Companies. Additionally, in past economic downturns, this revenue proved to be somewhat resilient and stable due to the City’s unique taxing structure based on gross receipts and CPI increases. Building Permits & Plan Check Fees: Residential and commercial building activity has remained relatively consistent with prior years and there are several large commercial projects on the horizon, which are expected to boost Plan Check and Building Permit cost recovery fees. Additionally, the City recently completed a User Fee Study in April 2025 and adopted updated user fees that will result in increased cost recovery for building permit and plan check fees services. Based on current activity levels and the recent User Fee Study, Building Permits are expected to generate $2.6 million, which is an increase of $457,433 (21.8%). Plan Check fees are projected to slightly increase by $162,500 (8.8%) over the prior year budget to $2.0 million. Service Charges: Service Charges are increasing by $682,578 (7.0%) from the prior year, primarily due to the recent User Fee Study that was adopted in April 2025 which will increase the overall cost recovery for most user fees. The Study involved a comprehensive review of all Citywide user fees and an in-dept analysis of each position, time and cost involved in delivering discretionary services. Ambulance fees and Parks & Recreation class fees were also adjusted per recent trends. Parking Citations: Parking citation fines are issued by Community Service Officers with the purpose of penalizing violators for exceeding meter time limits and encouraging parking turnover in the high demand parking environment of Manhattan Beach. Since parking citation penalties had not been updated since 2015, the City initiated revenue enhancements to increase parking citation revenues in the General Fund, especially considering Community Service Officers are funded through the General Fund. On April 15, 2025, the City Council approved a $6 increase to all parking citations which adjusted the typical citation from $53 to $59 and a $7 increase to late penalties, which adjusted the late fee from $31 to $38. Additionally, on March 6, 2025, the Finance Subcommittee concurred with proposed changes to Section 6 - Capital Improvement Policies within the City’s Financial Policies that removed the $4.00 dedication of every parking citation revenue to the CIP Fund. This change in Policy thereby increases the General Fund revenues and funding availability. The updated Financial Policies were then approved by City Council during the budget adoption process on June 3, 2025 through Resolution 25-0074. Together, these revenue enhancements and Financial Policy changes will increase parking citation revenues to approximately $2.7 million in FY 2026, an increase of 26% compared to the prior year adopted budget. Operating Service Transfers: Operating Service Transfers are estimated at nearly $5.5 million, which is $1.5 million (36.1%) higher than the prior year budget. This increase is mainly attributable to the recent Cost Allocation Plan (CAP) that was approved by City Council on April 15, 2025. The updated CAP was developed based on a 100% cost recovery model which reimburses the General Fund for all indirect overhead costs and eliminates the General Fund subsidy to other funds for these costs. The purpose of the CAP is to spread / allocate costs to the applicable funds that receive central services in support of their daily operations, however, the results of this reallocation has led to increases in administrative overhead charges in other funds, as depicted in the Schedule of Administrative Service Charges within the Appendix section of this Proposed Budget Book. Furthermore, the Operating Service Transfers into the General Fund reflect support costs allocated to other funds for salaries and benefits of support staff, utilities, depreciation on buildings, and other indirect costs. Additionally, Engineering and Grant Accounting staff hours worked on Capital Improvement Projects are reimbursed by Special Revenue Funds (Gas Tax, Proposition “C”, Measure “R”, and Measure “M”), the CIP Fund, and Enterprise Funds (Water, Storm Drain, and Sewer). A complete listing of revenues is located in the Fund Summaries section of this document. GENERAL FUND EXPENDITURES: General Fund expenditures equal $105,580,229 in FY 2026, an increase from the FY 2025 Budget of $7.1 million (7.2%). When comparing to the more recent FY 2025 mid-year estimates, the FY 2026 Budget is $3.8 million (3.7%) higher. At about 60% of General Fund Expenditures, Salaries and Benefits represent the largest portion of the budget in FY 2026. This category shows an increase due to cost-of-living adjustments that are anticipated in labor agreements and necessary position changes to meet organizational needs and service requests from the community, which are explained in depth in the City Manager’s Budget Message. Recruitment and employee retention are a top priority internally as we adapt to changing workforce trends. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 28 The Salaries and Benefits category also includes a six percent vacancy factor for full-time staffing, which equates to roughly $3.6 million across all funds, and approximately $3.2 million in the General Fund. This vacancy factor is in recognition of the fact that, throughout the year, various positions are vacant through attrition and retirements, and that salary savings are achieved during these vacancies. This practice was implemented several years ago when significant year-end savings would result from fully budgeting staff positions. The current method recognizes vacancies up-front, with the expected savings factored into the budget. Pension costs remain a significant driver of employee benefit costs. Managing future pension costs and meeting retirement obligations remain one of the City’s biggest challenges. Over 95% of retirement costs are attributable to the City’s Governmental Funds and growing pension costs have the potential to crowd out other funding needs. In May 2021, the City issued pension obligation bonds (POBs), which eliminated the City’s unfunded liability at the time and replaced it with bonded debt. By issuing the POBs, the City was able to finance the pension liabilities at a true interest cost of 2.72%, which was 4.08% lower than the CalPERS discount rate of 6.8%. However, due to fluctuations in CalPERS returns, the City’s funded status will fluctuate from being over-funded to under-funded and result in a net pension liability. For this reason, the City created a Pension Liability Policy to allocate the POB “savings” to specific uses rather than being absorbed by operational costs. By “prefunding” future pension costs with predictable transfers to the City’s Section 115 Trust Fund, the City’s General Fund experiences less volatility as the pension liability payments may be paid from the City’s Section 115 Trust Fund. Materials and Services, which includes Contract and Professional Services, are increasing $612,646 (2.9%) from last year ’s budget mainly due to increases in, electricity costs ($394,021), legal services retainer fees ($110,500), and Leased Property & Equipment ($1.0 million). New accounts for Leased Property & Equipment are the result of new requirements from GASB 87, which require local governments to separately account for leases and subscription services. To ensure compliance with GASB 87, the City shifted all lease and subscription costs that were formerly within contract services and relocated them into a separate account for reporting purposes. Although this accounting shift caused the General Fund contract services to decrease by approximately $477,991, there were still notable increases in contract services including Fire EMS Departmental Supplies-Cardiac Monitors ($100,000), increased tree management services ($134,417), janitorial services ($61,934), and Workplace & Administration Investigative and consulting services ($100,000). Utility costs, which are included within the Materials and Services category, are projected to increase over the prior year budget by $445,846 (34.1%) due to inflationary increases in electricity and the allocation of selected postage costs into this category. Internal Service Charges include charge-outs for the Insurance Reserve, Fleet, Information Technology and Building Maintenance funds, which are used to capture and allocate common costs across all departments. Overall, this category is increasing by $2,764,439 (22.1%) due to higher insurance costs and technology purchases, which are more fully described in the Internal Services Fund section below. Capital Equipment costs within the General Fund are significantly lower in FY 2026 when compared to the prior year, which included the purchase of a few significant new Police vehicles. Debt Service payments increased slightly by $10,247, which aligns with pre-established debt service payment schedules. Transfers Out: Transfers from the General Fund to other funds can occur when other funds do not have sufficient revenues to meet expenditures and require the support of General Fund tax dollars. In the past few years, the City has taken major steps to reduce General Fund subsidies to other funds by putting forward revenue enhancements that increase cost recovery such as the Storm Drain Measure, User Fee Study and Parking-related fees. Although major steps have been taken to reduce General Fund subsidies to other funds, the FY 2026 budget still requires necessary transfers out to support the Street Lighting and Landscape Fund ($284,462) and the Storm Drain Fund ($500,000). Additional transfers include $5,000,000 to the CIP Fund to support on-going and critical infrastructure projects and related debt service, in addition to a transfer of $3,246,893 to the Section 115 Trust Fund, which is set aside for CalPERS UAL payments based on the City’s Pension Policy. Overall, the FY 2026 General Fund budget outlook is positive with an anticipated operating budget surplus of $6.6 million. Taking into account expected transfers and policy reserves, the unreserved General Fund balance is projected to total $5.1 million on June 30, 2026. OTHER FUND HIGHLIGHTS SPECIAL REVENUE FUNDS The Street Lighting and Landscaping Fund derives its revenues from assessments to property owners. Increasing the assessments, which have not changed since 1996, will require a successful Proposition 218 vote. As a result, the FY 2026 assessment basis remains fixed with no increase from prior years. Because expenses for utilities and maintenance are not fixed and have risen since 1996, the General Fund must contribute increased amounts each year in order to fund this service. The subsidy is estimated at $284,462 in FY 2026. In addition to the subsidy, the City contributes $13,765 to cover the City’s portion of the Streetscape zone. This Fund exhausted its reserves long ago and, until new assessments are in place, General Fund subsidies will have to continue in order to support the program costs. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 29 The Gas Tax Fund (Gas Tax and SB1 Funds) accounts for State gas tax monies dedicated to roadway and sidewalk projects. The FY 2026 Budget includes revenues estimated at $2.1 million and capital expenditures of $2.1 million. Funded projects include allotments for the Annual Street Resurfacing Program ($915,000), Annual Citywide Concrete Repair Program ($365,000), MBB Pavement Rehabilitation from Sepulveda Blvd. to Dianthus St. ($350,000), Voter Center ADA Improvements ($200,000), Aviation Blvd and 33rd Missing Sidewalk ($40,000), and various cycles of ADA Ramp Improvement projects ($275,000). The Asset Forfeiture Fund includes estimated revenues of $74,769 consisting of anticipated interest earnings on the fund balance and reimbursement for overtime costs related to narcotic enforcement efforts through L.A. IMPACT. The receipt of other Asset Forfeiture funds is unpredictable and therefore not programmed into the budget. The associated staffing costs for these efforts are budgeted at $168,000. The Police Safety Grants Fund includes anticipated revenues of $209,284 in grant funds and interest income, and $220,000 in operating expenditures for front-line law enforcement supplies and equipment. The Grants Fund is being used to account for revenues and expenditures related to new projects funded by grants and contributions from private parties. The Grants Fund currently has 8 of the 15 of grant-subsidized capital improvement projects and represents approximately $6.5 million of the City’s currently budgeted capital project expenditures. Although the City has several grant-funded projects in progress, no new awards have been secured for inclusion in the proposed budget for FY 2026. The majority of Proposition “A” Fund revenues are based on a half-cent sales tax in Los Angeles County, which is then distributed on a per capita basis. FY 2026 revenues are estimated at $918,788 and operating expenditures for the Dial-A-Ride and other transit services are budgeted at $ 931,253. These expenditures include additional funds of approximately $60,137 for a pilot project utilizing ride-share services within the Dial-A-Ride program. Additionally, $500,000 is also budgeted to replace an existing Dial-A-Ride bus nearing the end of its useful life. The Proposition “C” Fund, established for transportation and street improvement programs, reflects estimated transit sales tax revenues of $777,139. Expenditures totaling $685,664 include capital funding for the Annual Street Resurfacing Program ($400,000), Citywide Crossgutter Improvements ($150,000), and Pedestrian Curb Ramp Improvements, Valley Drive at Elm and Walnut Avenues ($100,000). The AB 2766 Fund was established in 1990 and provides per capita funding to cities and counties located in the South Coast District to be used to reduce motor vehicle air pollution. Revenues of $53,373 are budgeted in FY 2026, which may be used for future projects or purchases such as additional electric vehicle chargers. During FY 2010, the City began receiving funds from Measure “R”, which was approved by L.A. County voters in November 2008. This half-cent sales tax can be used for projects such as pothole repairs, major street resurfacing, left-turn signals, bikeways, pedestrian improvements, streetscapes, traffic signal synchronization, and local transit services (including subsidizing Dial-A-Ride services as done in the past). Revenues totaling $610,433 are budgeted in FY 2026. Budgeted expenditures totaling $379,753 include $360,000 for the Aviation Blvd and 33rd Missing Sidewalk project. In November 2016, Los Angeles County voters approved Measure “M” to ease congestion and improve neighborhood streets and intersections. The City started receiving Measure M funds in FY 2018. In FY 2026, revenues are budgeted at $654,628. Within the total expenditures of $1,534,832, Measure M funded projects include the Annual Street Resurfacing Program ($1,155,000) and Annual Citywide Traffic Signal Replacements ($300,000). The Measure “W” Fund was created in 2021 to account for the Los Angeles County Measure W parcel tax approved by voters on November 6, 2018, to fund improvements and maintenance of local storm drain systems. As part of the measure, a portion of the funds collected annually are distributed to municipalities to fund upgrades and the maintenance of each agency’s storm drain infrastructure. The City began receiving Measure W funds in FY 2021 and will continue receiving an estimated $410,000 per year. The Beach Cities Green Streets Stormwater Infiltration project ($50,000) is budgeted in FY 2026. Additionally, the budget includes roughly $4.1 million for the 28th Street Stormwater Infiltration project, which is offset by an equivalent amount of revenues though a Safe Clean Water LA grant. CAPITAL IMPROVEMENTS FUNDS In years past, City Councils have created dedicated revenue sources for the Capital Improvements Fund in order to provide reliable funding for important projects (previously, project funding relied on General Fund surpluses). These revenue sources and the year enacted are as follows: 1998 Transient Occupancy Tax – 15% of the base 10% tax 2025 General Fund Surpluses - Transfer up to $5.5 million, or as otherwise set by City Council for any given fiscal year These funding resources are projected to generate around $6.1 million in FY 2026. The CIP Fund has existing debt service of $759,063 on the Police & Fire facility and $400,375 on the Fire Station #2 Certificates of Participation. With the financing underway for the purchase of 400 MBB, additional debt service costs were budgeted for $627,776. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 30 A total of $6.3 million in projects are scheduled in FY 2026, including: $1,750,000 for City Facility Renovations $1,000,000 for Manhattan Heights Park Improvements $784,000 for Project Design at 400 Manhattan Beach Boulevard $600,000 for the Annual Street Resurfacing Program $500,000 for Sand Dune Park Improvements $500,000 for Voter Center ADA Improvements $300,000 for Manhattan Village Field Lighting Replacement $250,000 for a School District Project $150,000 to Replace Fencing at Marine Avenue Park Soccer Field $100,000 for Renovation of City Hall Employee Lounge $75,000 for the Annual Park Improvements/Replacement Program - All Other $68,000 for the Annual Park Improvements/Replacement Program - Sport Courts $50,000 for the Annual Park Improvements/Replacement Program - Playground Equipment $50,000 for the Manhattan Village Aquatic Pool Complex $50,000 for the Annual Facilities Capital Maintenance Program $40,000 for the Annual Non-Motorized Transportation Program With these funded projects, the CIP Fund is expected to have an unreserved fund balance of $664,556 at the end of FY 2026, which will be used for future planned capital improvements. Additionally, $1.5 million is set aside in a new debt service and capital reserve with the goal of increasing fund balance for future capital needs and in anticipation of future infrastructure projects. The Bond Construction Fund was used to account for the Fire Station No. 2 Project, including Certificates of Participation bond proceeds of $8.7 million and a transfer from the General Fund of $1.4 million, which was approved by the City Council in 2021. This project was completed in FY 2025. The Utility Undergrounding District (UAD) Construction Fund is used to account for bond proceeds and construction expenditures to complete the utility undergrounding work in each district. District 4 was completed in FY 2025 and Districts 12 and 14 are nearing completion. Two new districts (8 & 13) may initiate a Proposition 218 vote in FY 2026, which will set into motion new bond issuances and construction. ENTERPRISE FUNDS FY 2026 revenues in the Water Fund are estimated at $18.7 million while operating expenses, capital projects and debt service in this fund total $19.6 million. Capital projects totaling approximately $3.0 million include $1.6 million 2nd Street Booster Station Improvements; $1.4 million for El Porto Water Infrastructure Improvements; and $40,000 for a Recycled Water Feasibility Study for MBB Medians and Highland Avenue Tree Wells. Although annual water rate increases were approved for November 2022 through November 2026, revenues from service charges have been impacted by lower consumption due to conservation efforts and heavier rainfall trends. With operational costs continuing to rise, and necessary capital improvements for aging infrastructure on the horizon, additional rate increases may be needed in the near future to maintain operations and fund future projects. The Storm Drain Fund includes revenues of nearly $2.3 million from the City’s Storm Drain Assessment Fee and expenditures of $2.7 million. In FY 2024, the City passed a Proposition 218 measure to implement a new Storm Drain Fee, which went into effect in FY 2025. The FY 2026 Budget allocates funds for street sweeping and mandated National Pollution Discharge Elimination System (NPDES) Permit Compliance Programs. The budgeted capital projects in the Storm Drain Fund total $1.1 million including the Dominguez Channel Trash TMDL ($708,337), Golf Course Storm Drain Lift Station Electrical Upgrades ($200,000), Manhattan Beach Dominguez Channel Stormwater Infiltration – Feasibility ($125,000), and American Martyrs Stormwater Sump Hydrology and Capacity Study ($100,000). The City has significant regional obligations under the Waste Discharge Requirements and NPDES Permit for Municipal Separate Storm Sewer System (“MS4”) Discharges within the Coastal Watersheds of Los Angeles and Ventura Counties. Under this permit, the City must undertake a myriad of programs to control and prohibit discharges of pollutants into the MS4. These programs include maintenance and operations work performed by employees and upcoming multi-million dollar capital projects to prevent pollution in the waters in the Beach Cities Watershed area, which include the Santa Monica Bay and the Dominguez Channel. Revenues in the Sewer Fund are projected to be $4.7 million with operating expenses, capital projects, and debt service estimated at $6.0 million. The budgeted capital project in the Sewer Fund includes $3,250,000 for the Pacific Lift Station Replacement Project. Although new annual sewer rate increases were approved for November 2023 through November 2027, like in the Water Fund, revenues from service charges have been impacted by lower consumption due to conservation efforts and heavier rainfall trends. Additional rate increases may be needed to maintain operations and fund infrastructure projects. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 31 The Parking Fund accounts for collections and expenditures for street meters and City-owned lots, debt service on the Metlox parking structure, and maintenance of the Metlox Town Square. In FY 2026, the Parking Fund will realize significant revenue enhancements based on parking fee increases and financial policy changes. On March 6, 2025, the Finance Subcommittee concurred with proposed changes to Section 6 - Capital Improvement Policies within the City’s Financial Policies. Specifically, the updated Policy removed the $0.50 dedication of the hourly parking meter rate revenue to the CIP Fund. The updated Financial Policies were then approved by City Council during the budget adoption process on June 3, 2025, through Resolution 25-0074. This change in Policy thereby increases the Parking Fund revenues and funding availability to use on critical parking related infrastructure projects. Additionally, on April 15, 2025, the City Council approved an increase to the parking meter rates for on-street meters and City-owned lots from $2.00 to $2.50 per hour and increased monthly commercial parking permits from $27 to $45 and 6-month commercial parking permits from $160 to $250. These Parking Fund revenue enhancements were developed to address the City’s critical parking needs resulting from the unexpected Lot 3 Parking Lot Replacement Project, in addition to: Increased demand for parking for visitors and business employees; Aging parking infrastructure; Outdated parking meter technology, including the need for conversion to advanced kiosk pay-stations; and Other parking lot improvement projects, such as water proofing parking structures, as aging infrastructure reaches its maximum useful life. With these changes to Financial Policies and revenue enhancements, Parking Fund revenues are projected at $6.3 million. Expenditures are estimated at $8.2 million, which includes $655,064 in debt service on the Metlox parking structure and capital projects including $2.9 million for the Annual Parking Payment Facilities Improvements Program, $1.1 million to replace the escalator in Metlox Plaza, $1.0 million for the Parking Structure Lot 3 Replacement Project. Fund revenues and expenditures also include the Downtown Business Improvement District assessments (approximately $110,000), which the City collects and then remits to the Downtown Business and Professional Association through a contractual agreement. Any excess parking meter revenues are being accumulated in fund balance for future parking infrastructure projects and debt service. An additional factor that impacts Parking Fund revenue is the Holiday Meter Bagging period that typically occurs for the 28 days preceding Christmas. In 2025, the meters will be bagged on November 26, the day before the Thanksgiving holiday. This policy of Meter Bagging reduces roughly one month’s worth of parking meter revenues as the meter rates are at no cost to the public during the affected period. The County Parking Lots Fund accounts for the two County-owned beach parking lots commonly referred to as El Porto and 26th Street. Similarly, on April 15, 2025, the City Council approved revenue enhancements to increase the parking meter rates for County Lots (Bruce’s Beach and El Porto) from $2.50 to $3.50 per hour. Based on these rate adjustments, revenues are projected at $1.6 million in FY 2026 and expenditures of $1.2 million are budgeted, including operational costs and $853,437 for the County Lots operating lease. Excess funds ($400,149) are transferred to the General Fund after accounting for the County’s share of revenue. The State Pier and Parking Lots Fund relates to the operational activity for the State-owned Pier and adjacent parking lots. As with the County parking beach lots, the State Pier Fund parking lot meter rates were also adjusted from $2.50 to 3.50 per hour based on revenue enhancements approved by City Council on April 15, 2025. Revenues of $1.2 million are projected in FY 2026 and operating and capital expenditures are budgeted at $702,081. Fund revenues are used to maintain and operate the Pier and parking lots, and the Pier comfort stations. Fund balance, as well as a temporary loan of $900,000 from the Parking Fund in FY 2024, was used for the design and replacement of the Pier Railings Project. Payback of the temporary loan will be completed in FY 2026. INTERNAL SERVICE FUNDS The City operates four Internal Service funds that provide for the operation, maintenance, and replacement of facilities or equipment, or serve to spread the cost of an internal function across the user departments. The FY 2026 Insurance Reserve Fund budget contains revenues (primarily from charge-outs) of $10.1 million and expenditures of nearly $11.9 million. The Insurance Reserve Fund allocates charges to other funds based on recent experience and actuarial funding estimates. In recent years, costs have escalated faster than the budgeted charge-outs and reserves were drawn down in FY 2023 ($1,044,242) and FY 2024 ($209,260). If predicted cost escalations come to fruition in FY 2025 and FY 2026, additional transfers from the General Fund will be needed to maintain the current policy reserve level of $7.0 million. In FY 2026, charge outs to departments for liability and property claims increased by $892,320 when compared to the year-end projection for FY 2025. These charge-outs fund insurance premiums, claims paid, litigation expenses and claims administration costs. The significant increase is primarily due to an increase in claims expense influenced by various factors such as rising medical expenses, higher frequency and severity of incidents, and increased litigation and related expenses. The increase in insurance premiums is attributed to a tough insurance market which has been impacted by the increase in cybersecurity incidents and significant weather-related events across the country, including hurricanes, severe connective storms and wildfires. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 32 Overall, budgeted claims paid in FY 2026 have increased for liability by $1.5 million to $2.5 million and workers compensation liability has remained at the same level compared to prior years with a budget of $4.0 million. Workers compensation and liability expense are difficult to predict because of our relatively small population and the volatile way extraordinary cases occur. The result is that there are extreme swings in expense from year to year. Workers’ compensation continues to be a challenge both in terms of cost control and predictability. Ongoing old cases can significantly deplete insurance reserves. These claims can significantly increase the City’s liability. While proactive workplace injury prevention programs help with our current employees, the City could be exposed to escalating costs for many years after separation from employment. To mitigate risk, the City has a Self-Insured Retention (SIR) of $500,000 for liability and $750,000 for Workers’ Compensation. Additionally, the City adopted a policy reserve level based on actuarial analysis in FY 2023. This approach is balanced with an internal assessment of funding needs and will be reevaluated as needed. The Information Technology Fund provides for the operation of the City’s Information Technology (IT) Department, including managing and maintaining the City’s technology infrastructure, ensuring secure and seamless operations, and supporting the City Departments with their technological needs. The IT core functions incorporate end-user support, infrastructure support, application support, Geographic Information Systems (GIS) services, communications and collaborations, cybersecurity, and business process improvements. The Department’s budget is charged out to the other departments based on the number of devices - workstations, printers, desk phones, mobile devices, etc. - being utilized and the number of employees in each division. In FY 2026, Information Technology Fund revenues are $6.4 million, and expenditures are budgeted at $6.5 million. Budgeted enhancements include the Enterprise Resource Planning and Enterprise Planning and Licensing systems migration from on-premise to cloud platform; Enterprise Content Management system replacement; network devices refresh; audio- visual (AV) upgrades to the Joslyn Center Auditorium and the Police/Fire Conference Room; closed captioning services addition for a City commission; Boards and Commissions onboarding into the Meeting Management system; and additional features and optimizations for the Public Records Request system. The Fleet Management Fund is charged to departments in two separate line items - fleet maintenance and fleet rental. Fleet maintenance accounts for repairs and routine vehicle maintenance based on the average maintenance and repair cost according to the type and number of vehicles a department operates. The fleet rental charge provides for the replacement of City vehicles, and is a straight-line depreciated charge based on the cost and expected life of each vehicle. However, the City does not always replace vehicles according to the “expected life” schedule. Instead, the City evaluates the condition of the vehicle at the end of its useful life and may defer the replacement if the vehicle is still in good condition. Service charges totaling $3.5 million are budgeted in FY 2026 to fully fund operations of $1.8 million, including higher fuel costs, and vehicle replacements of $2.5 million. A full list of vehicle replacements is included in the Capital Budget Summary section of this document. The Fleet Management Fund is expected to have $1.0 million in fund balance after FY 2026 for future vehicle replacements. The Building Maintenance and Operations Fund consists of programs from two different departments. The Fund provides for Public Works’ Building Maintenance program, which maintains City facilities and grounds, and the Finance Department’s Purchasing program which ensures that common equipment and supplies (such as photocopiers and paper) are maintained. The Fund’s FY 2026 Budget includes revenues of $3.0 million and expenditures of $3.0 million. Expenditures associated with this fund are allocated to departments based on their number of employees and the square feet of buildings they occupy. TRUST AND AGENCY FUNDS The Section 115 Trust Fund contains transfers from the General Fund per the Pension Liability Policy adopted by the City Council in conjunction with the issuance of the Pension Obligation Bonds (POBs), which paid off the City’s CalPERS liability in 2021 and exchanged it for level-debt service. The ongoing transfers from the General Fund reallocate the proposed budgetary “savings” achieved by the issuance of the POBs, which is derived from the difference between what would have been paid to CalPERS compared to the current level-debt payments of $5.5 million. The Policy was written to provide flexibility in the allocation of savings depending on priorities each year. Since the inception of the Policy, two of the last four years were modified to allocate more funds to capital needs and less toward prefunding future pension payments: POB "SAVINGS" CIP FUND TRANSFER POB "SAVINGS" SECTION 115 TRANSFER TOTAL FY 2022 40%$492,596 60%$738,894 1,231,490 FY 2023 80%1,596,585 20%399,146 1,995,731 FY 2024 80%1,994,920 20%492,380 2,487,300 FY 2025 40%1,194,471 60%1,791,707 2,986,178 $5,278,572 $3,422,127 $8,700,699 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 33 Due to a negative investment return as of June 30, 2022, the City fell back into an underfunded status, resulting in an unfunded accrued liability (UAL) of approximately $2.0 million in FY 2026. In light of these increasing UAL payments, it is imperative the City dedicate more funds to the Section 115 Trust. Staff recommended, and the Finance Subcommittee concurred, a Policy change in FY 2026 to transfer the full amount of the budgetary savings to the Section 115 Trust Fund going forward. In FY 2026, this transfer from the General Fund is nearly $3.2 million. The City Council has the discretion to use funds accumulated in the Section 115 Trust Fund to pay ongoing pension costs directly to CalPERS, which can mitigate pressure on the General Fund if there is a volatility in payments. Utilizing the Section 115 Trust Fund for its intended purpose, a payment to CalPERS is budgeted in the amount of $1.8 million for the General Fund portion of the UAL. After the transfer in and UAL payment to CalPERS, the balance in the Fund is projected to be $6.0 million at the end of FY 2026. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 34 CLASSIFICATION OF FUNDS CLASSIFICATION OF FUNDS CITYWIDE BUDGET GOVERNMENTAL FUND TYPES GENERAL FUND SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS PROPRIETARY FUND TYPES ENTERPRISE FUNDS INTERNAL SERVICE FUNDS FIDUCIARY FUND TYPES TRUST & AGENCY FUNDS CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 35 GOVERNMENTAL FUND TYPES GENERAL FUND The General Fund is used to account for resources traditionally associated with general government which are not required to be accounted for in a separate fund including: sales tax, property tax, transient occupancy tax, licenses and permits, fines and forfeitures. This fund is used to finance most of the basic municipal functions, such as general administration, public safety, parks & recreation, and community development. SPECIAL REVENUE FUNDS The Street Lighting & Landscape Fund provides for the power, maintenance, and capital improvements for the lighting system within the City of Manhattan Beach. Money is received from a special assessment placed on each tax bill in the City, the amount of which is determined by the benefit received by the owner of each property. Assessments from Zone 10 of the street lighting district also provide for the maintenance of the street beautification area in downtown Manhattan Beach. The Gas Tax Fund is used to account for the City’s share of State and County gasoline tax collection in accordance with the provisions of the State of California Streets and Highway Code. Revenues are disbursed by the State based on population and must be used towards the maintenance and repair of City streets that serve as State and County thoroughfares. The Asset Forfeiture Fund is used to account for funds received through Federal and State agencies for drug seizures in which the City participated. These funds must be used to supplement, not supplant, the Police Department’s normal operating budget. The amount of revenue will vary from year to year based on activity levels. The Public Safety Grants Fund is used to account for any Federal, State, or local grants received for law enforcement purposes. The Grants Fund was established to account for the receipt and expenditure of all grants and restricted donations. Revenues are restricted for the use specified in the grant award or donations. The Proposition A and C Funds and Measure R and M Funds are used to account for proceeds from the additional sales taxes generated by the approval of Los Angeles County voters. These funds, which are administered by the Los Angeles County Metropolitan Transportation Authority (MTA), are distributed based on population and must be used for transportation-related projects. The Measure W Fund is used to account for proceeds from the Measure W parcel tax generated by the approval of Los Angeles County voters. These funds, which are administered by the Los Angeles County Safe Clean Water LA program, are distributed based on the non-permeable surface of each eligible parcel within the City and must be used for stormwater-related projects. The AB 2766 Fund is used to account for proceeds received from the additional vehicle registration fee imposed by the State and regulated by the Air Quality Management District (AQMD). These funds are distributed based on population and must be used for programs designed to reduce air pollution from motor vehicles. CAPITAL PROJECTS FUNDS The Capital Improvement Fund is used to account for capital projects not eligible for funding from other specific funding sources. Funding sources are derived from various sources such as grant funds or transfers from the General Fund. In 1998-1999, City Council acted to designate specific revenue sources for this fund consisting of the 15% of the City’s base 10% Transient Occupancy Tax rate and the 25 cents incremental increase of parking meter rates. Additionally, in FY 2000-2001, City Council added to this dedicated revenue stream by increasing street meter rates by an additional 25 cents per hour and most parking citation rates by $4. Specific projects and their funding sources are described in detail in the City’s Capital Improvement Plan. The Bond Construction Fund is used to segregate for bond funded projects. The Undergrounding Assessment District Construction Fund is used to account specifically for the construction of utility undergrounding in established districts. The fund serves as a pass through of the assessments collected to pay the debt service for the improvements. DEBT SERVICE FUNDS Three Special Assessment Redemption Funds are used to account for principal and interest payments on the Underground Utility Bonds for the 2018 Refunding of Districts formed in 2004 and 2005, as well as Districts 19-12, 19-14, and 19-4 that formed in 2019. Proceeds of these bonds were used to relocate utility lines underground in certain portions of the City. The bonds are being repaid with proceeds from special assessments levied on the property owners who benefited from the project. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 36 PROPRIETARY FUND TYPES ENTERPRISE FUNDS The Water Fund is used to account for the operation of the City’s water utility system. Revenues are generated from user fees, which are adjusted periodically to meet the costs of administration, operation, maintenance, and capital improvements to the system. The Storm Drain Fund is used to account for the maintenance of, and improvements to, the City’s storm drains. Revenues are derived from a storm drain assessment to property owners, which is based on size and use of the parcel, and collected through the property tax rolls. The Sewer Fund is used to account for the maintenance of, and improvements to, the City’s sewer system. Revenues are derived from a user charge placed on the water bills. The Parking Fund is used to account for the general operations and maintenance of City parking lots and spaces. The Parking Fund also accounts for the revenue generated by City parking lots and spaces. The Parking Fund contains reserves for the Business Improvement Districts (BIDs) to be used for their approved activities. The County Parking Lots Fund is used to account for the operation and maintenance of parking lots that are owned by Los Angeles County and leased to the City. Proceeds from the meters and parking permits are divided 55 percent to the County, with an annual guaranteed minimum of $130,000, and 45 percent to the City. The State Pier & Parking Lot Fund is used to account for the operation and maintenance of the Manhattan Beach Pier, comfort station, and four adjacent parking lots. These properties are owned by the State, but controlled by the City through an operating agreement. INTERNAL SERVICE FUNDS The Insurance Reserve Fund is used to account for the City’s self-insured workers’ compensation and general liability programs. The fund collects premiums from departments based on claims history. The Information Technology Fund is used to account for the operation, maintenance and replacement of the City’s Information Systems including the City-wide network and related hardware and software. Revenues are generated from charges to departments based on the number of devices in use. The Fleet Management Fund is used to account for the operation, maintenance and replacement of City vehicles. Revenues are generated from vehicle rental charges to departments based upon the number, type, and age of vehicles operated. The Building Maintenance and Operation Fund is used to account for the operation and maintenance of certain City facilities. Revenues are generated by charges to user departments based on their number of employees and square feet of building they occupy. FIDUCIARY FUND TYPES TRUST & AGENCY FUNDS The Pension Trust Fund is used to account for the supplemental retirement and single highest year programs previously provided by the City. Although the City has replaced these programs, this fund accounts for the former employees still receiving these benefits. The Section 115 Trust Fund is used to account for funds transferred from the General Fund to prefund future pension payments. Funds are transferred annually per the Pension Liability Policy adopted by the City Council in conjunction with the issuance of Pension Obligation Bonds in 2021. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 37 DEPARTMENT-FUND MATRIX CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 38 BASIS OF BUDGETING Manhattan Beach’s accounting system is maintained on a fund basis, in accordance with governmental accounting standards. Each of the City’s thirty funds is considered a separate accounting entity with a self-balancing set of accounts that records assets, liabilities, fund equity, revenues and expenditures. Funds are established and segregated for the purpose of recording specific programs or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Funds are classified into one of three categories: governmental (general, special revenue, debt service, and capital projects), proprietary (enterprise and internal service), and fiduciary (trust and agency). Governmental funds account for activities usually associated with a typical state or local government’s operation. Proprietary funds are financed and operated in a manner similar to private business enterprises, where the intent is to recover the costs of providing goods and services from user charges. Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or an agent. All governmental funds are budgeted and accounted for using the modified accrual basis of accounting, which recognizes revenues when they become susceptible to accrual, i.e. measurable and available. Available means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Examples of such revenues include property tax, sales tax, and interest earnings. Expenditures are recognized when the fund liability is incurred. Proprietary fund revenues and expenses are budgeted and accounted for on an accrual basis. Revenues are recognized in the period when earned, and expenses are recognized when incurred. The following Classification of Funds describes, in detail, the various types of funds and their purpose as established by the City of Manhattan Beach. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 39 BUDGET INFORMATION Prior to July 1st of each year, the Manhattan Beach City Council adopts, by formal resolution, an annual budget. This document serves as a financial plan, the purpose of which is to identify the projected allocation and application of resources over the budget cycle. The published Operating Budget is designed to present summary information about the City’s financial plans for the year in a user-friendly format. The Operating Budget is organized by department, then by program (operating divisions within the departments). Expenditures are displayed and subtotaled by type: Salaries & Benefits, Materials & Supplies, and Capital Projects & Equipment. The Source of Funds tables indicate the fund(s) to which a program allocates its expenditures. BUDGET PROCESS The City’s budget process begins in January of each year with the distribution of a budget manual prepared by the Finance Department. The budget manual contains a budget calendar, chart of accounts, forms for requesting new or additional items, and the general policy and instructions for developing the budget for that fiscal year. Line-item budget development is accomplished through the City’s financial system, which allows each department to build its budget using computerized worksheets. The individual departments are directly responsible for developing the Materials & Supplies line items and part-time employees’ salaries. The remaining Salary & Benefit information is calculated and entered by the Finance Department. All supplemental budget requests (new personnel, service or equipment) are presented on separate forms and are subject to City Manager review and approval before becoming part of the operating budget. Once all the budget data is compiled, it is printed and distributed to the City Manager and the departments. In March, the Finance Director provides the City Manager with proposed revenue projections. These revenue estimates are then reviewed with the department budget requests to determine available funding levels for the fiscal year. The City Manager and Finance Director then hold meetings with the departments to review the operating and supplemental budget requests. Once the budget data has been reviewed and any changes have been made by the Finance Department, a proposed document is prepared. After final review and approval by the City Manager, the proposed budget document is presented to the City Council in May. At least one study session and public hearing are held by the City Council, and then the budget is adopted by resolution prior to June 30. During the fiscal year, the budget can be amended as necessary to meet the City’s needs. The City Council has the legal authority to amend the budget at any time. Department Heads and their designated representatives may only authorize expenditures based on appropriations previously approved by City Council action, and only from accounts under their organizational responsibility. Actual expenditures may exceed budget appropriations by line-item, but may not exceed the department’s budget. The City Manager has the authority to approve interdepartmental appropriation transfers as long as they are within the same fund. Interfund transfers require a budget amendment by the City Council. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 40 BUDGET TIMELINE Dec 10, 2024 BUDGET KICKOFF Finance staff coordinates a meeting with budget contributors from various departments to discuss budget goals and communicate budget processes, including the timeline and milestones. Feb 10, 2025 BUDGET SURVEY The online Survey ran from 2/10/25 - 3/31/25 to gather community feedback on budget priorities. Feb 18, 2025 MID-YEAR BUDGET REPORT TO CITY COUNCIL The Finance Department presented projected budget estimates for the current year to City Council. May 6, 2025 PROPOSED BUDGET PRESENTATION The initial Proposed Budget is presented to City Council during a Regular City Council Meeting. May 13, 2025 BUDGET STUDY SESSION City Council reviews and refines the Proposed Budget and Capital Improvement Plan, provides direction to staff. May 20, 2025 BUDGET DISCUSSION The budget discussion is held during a Regular City Council Meeting open to the public. May 27, 2025 BUDGET STUDY SESSION (If Needed) City Council reviews and refines the Proposed Budget and Capital Improvement Plan. Jun 3, 2025 PUBLIC HEARING & BUDGET ADOPTION City Council's final review of the Budget. Adoption of the Budget occurs based on a majority vote. Jul 1, 2025 BUDGET BEGINS The new FY 2026 begins. The budget covers July 1, 2025 through June 30, 2026. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 41 PRESENTED TO City of Manhattan Beach California For the Fiscal Year Beginning July 01, 2024 Executive Director GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Manhattan Beach, California for its Annual Budget for the fiscal year beginning July 1, 2024. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 42 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 4 3 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 44 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 46 SUMMARY OF CHANGES IN FUND BALANCE ALL FUNDS $R$8 R151 2 07/01/2025 6/30/2026 Beginning Budgeted Budgeted Estimated Estimated Ending Reserves Unreserved Balance Revenues Expenditures Transfers In Transfers Out Balance End Balance End Balance General Fund Unreserved -$125,419,628 $105,580,229 $400,149 ($11,155,210)$9,084,338 $5,084,338 Financial Policy Designation 18,977,311 2,123,855 21,101,166 21,101,166 Reserve for Economic Uncertainty - - 4,000,000 Total General Fund Balance $18,977,311 $125,419,628 $105,580,229 $2,524,004 ($11,155,210)$30,185,504 $25,101,166 $5,084,338 Special Revenue Funds Street Lighting & Landscape $21,842 $391,003 $675,465 $284,462 $21,842 $21,842 Gas Tax 469,333 2,098,759 2,262,690 305,402 305,402 Asset Forfeiture & Safety Grants 161,995 74,769 168,000 68,764 68,764 Police Safety Grants 510,155 209,284 220,000 499,439 499,439 Grants - - - - - Prop A 1,396,338 918,788 1,431,253 883,873 883,873 Prop C 1,329,314 777,139 685,664 1,420,789 1,420,789 AB 2766 60,135 53,373 673 112,835 112,835 Measure R (101,067) 610,433 379,753 129,613 129,613 Measure M 1,330,073 654,628 1,534,832 449,869 449,869 Measure W 1,439,412 4,519,201 4,107,744 1,850,869 1,850,869 Total Special Revenue Funds Balance $6,617,531 $10,307,377 $11,466,074 $284,462 -$5,743,296 -$5,743,296 Capital Project Funds Capital Improvements $4,596,417 $1,105,804 $8,537,665 $5,000,000 $2,164,556 $500,000 $1,664,556 Bond Construction 213,166 - - 213,166 213,166 UUAD Construction 1,191,351 57,096 - 1,248,447 1,248,447 Total Capital Project Funds Balance $6,000,934 $1,162,900 $8,537,665 $5,000,000 -$3,626,169 $500,000 $3,126,169 Enterprise Funds Water*$2,832,703 $18,658,082 $19,586,471 $1,904,314 $1,904,314 - Storm Drain* 81,085 2,256,328 2,657,941 $500,000 179,472 $179,472 - Sewer*1,945,756 4,706,815 5,998,920 653,651 $653,651 - Parking*2,482,437 6,283,427 8,185,111 450,000 - 1,030,753 $1,030,753 - County Parking Lots - 1,588,160 1,188,011 (400,149) - - - State Pier & Parking*249,384 1,161,785 702,081 (450,000) 259,088 $234,027 25,061 Enterprise Fund Reserves: Total Enterprise Funds Balance $7,953,387 $34,654,597 $38,318,535 $950,000 ($850,149)$4,389,300 $4,364,238 $25,061 Internal Service Funds Insurance Reserve $6,142,981 $10,116,300 $11,897,119 $4,362,162 $4,362,162 - Information Technology 696,141 6,425,946 6,549,112 572,975 572,975 Fleet Management 1,791,169 3,523,905 4,306,751 1,008,323 1,008,323 Building Maintenance & Operations - 2,991,842 2,956,895 34,947 34,947 Total Insurance Service Funds Balance $8,630,291 $23,057,993 $25,709,877 - - $5,978,407 $4,362,162 $1,616,245 Trust & Agency Funds Underground Assessments $1,289,630 $714,150 $509,025 $1,494,755 $1,494,755 UUAD 12 & 14 957,923 606,106 604,907 959,122 959,122 UUAD 4 508,842 337,613 338,143 508,312 508,312 Post-Employment Benefits Trust Fund 42,458 213,343 213,115 42,686 42,686 Section 115 Trust Fund 4,500,672 100,000 1,856,902 3,246,893 5,990,663 5,990,663 Total Trust Agency Funds Balance $7,299,525 $1,971,212 $3,522,092 $3,246,893 -$8,995,538 -$8,995,538 Grand Total $55,478,978 196,573,707 $193,134,472 $12,005,359 (12,005,359) $58,918,213 $34,327,566 $24,590,647 * Not meeting current Financial Reserve Policy. 7/1/2026 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 47 SCHEDULE OF REVENUE BY FUND & CATEGORY General Fund (63.8%)General Fund (63.8%)General Fund (63.8%) Enterprise Funds (17.6%)Enterprise Funds (17.6%)Enterprise Funds (17.6%) Internal Service Funds (11.7%)Internal Service Funds (11.7%)Internal Service Funds (11.7%) Special Revenue Funds (5.2%)Special Revenue Funds (5.2%)Special Revenue Funds (5.2%) Trust and Agency Funds (1%)Trust and Agency Funds (1%)Trust and Agency Funds (1%) Capital Improvement Fund (0.6%)Capital Improvement Fund (0.6%)Capital Improvement Fund (0.6%) UAD Construction Fund (0.03%)UAD Construction Fund (0.03%)UAD Construction Fund (0.03%) General Fund Property Tax $43,067,609 $44,688,638 $44,738,402 $47,018,618 $2,329,980 5.2% Other Taxes & Assessments $27,890,306 $27,707,610 $29,160,663 $34,913,600 $7,205,990 26% Licenses & Permits $4,499,346 $4,025,191 $4,003,859 $4,537,719 $512,528 12.7% Fines & Forfeitures $1,953,584 $2,401,397 $2,369,767 $2,936,943 $535,546 22.3% Use of Money & Property $6,736,206 $5,147,800 $5,115,069 $5,590,443 $442,643 8.6% Other Governments $742,758 $256,000 $668,165 $315,190 $59,190 23.1% Service Charges $9,961,869 $9,768,401 $10,371,904 $10,450,979 $682,578 7% Miscellaneous Revenues $572,971 $932,000 $934,712 $14,123,000 $13,191,000 1,415.3% Interfund Charges & Transfers $3,731,200 $4,066,118 $4,066,118 $5,533,136 $1,467,018 36.1% Total General Fund:$99,155,850 $98,993,155 $101,428,659 $125,419,628 $26,426,473 26.7% Special Revenue Funds Property Tax $409,929 $410,000 $410,000 $410,000 $0 0% Other Taxes & Assessments $3,292,927 $3,421,388 $3,421,388 $3,169,405 -$251,983 -7.4% Use of Money & Property $696,626 $59,800 $351,827 $354,029 $294,229 492% Other Governments $4,515,844 $13,302,943 $4,704,787 $6,356,378 -$6,946,565 -52.2% Service Charges $2,803 $3,800 $1,400 $3,800 $0 0% Miscellaneous Revenues $9,104 $392,500 $1,281 $0 -$392,500 -100% Interfund Charges & Transfers $13,273 $13,517 $13,517 $13,765 $248 1.8% Total Special Revenue Funds:$8,940,506 $17,603,948 $8,904,200 $10,307,377 -$7,296,571 -41.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 48 FY 2026 Citywide Revenues by Fund Capital Improvement Fund Other Taxes & Assessments $1,062,511 $1,033,800 $1,035,648 $1,084,000 $50,200 4.9% Licenses & Permits $41,791 $10,902 $21,804 $21,804 $10,902 100% Fines & Forfeitures $78,284 $99,600 $99,000 $0 -$99,600 -100% Use of Money & Property $2,444 $0 $0 $0 $0 0% Other Governments $1,707,064 $0 $152 $0 $0 0% Service Charges $596,949 $570,000 $565,873 $0 -$570,000 -100% Miscellaneous Revenues $156,558 $0 $30,000 $0 $0 0% Total Capital Improvement Fund:$3,645,600 $1,714,302 $1,752,477 $1,105,804 -$608,498 -35.5% Bond Construction Fund Use of Money & Property $230,835 $0 $18,015 $0 $0 0% Total Bond Construction Fund:$230,835 $0 $18,015 $0 $0 0% UAD Construction Fund Use of Money & Property $121,149 $0 $47,745 $57,096 $57,096 N/A Total UAD Construction Fund:$121,149 $0 $47,745 $57,096 $57,096 N/A Enterprise Funds Other Taxes & Assessments $147,121 $135,000 $141,057 $135,000 $0 0% Licenses & Permits $21,841 $20,000 $20,000 $33,963 $13,963 69.8% Use of Money & Property $2,311,730 $660,000 $1,036,938 $1,104,334 $444,334 67.3% Other Governments $103,860 $0 $0 $0 $0 0% Service Charges $25,634,381 $28,829,380 $29,300,198 $33,324,100 $4,494,720 15.6% Miscellaneous Revenues $117,357 $58,200 $3,557 $57,200 -$1,000 -1.7% Total Enterprise Funds:$28,336,290 $29,702,580 $30,501,750 $34,654,597 $4,952,017 16.7% Internal Service Funds Licenses & Permits $0 $0 $0 $608,788 $608,788 N/A Miscellaneous Revenues $870,146 $625,000 $824,170 $625,000 $0 0% Interfund Charges & Transfers $19,454,783 $19,326,058 $19,326,058 $21,824,205 $2,498,147 12.9% Total Internal Service Funds:$20,324,930 $19,951,058 $20,150,228 $23,057,993 $3,106,935 15.6% Trust and Agency Funds Other Taxes & Assessments $1,513,855 $1,657,869 $1,657,869 $1,657,869 $0 0% Use of Money & Property $305,535 $100,800 $145,171 $100,228 -$572 -0.6% Miscellaneous Revenues $188,780 $170,000 $189,428 $182,000 $12,000 7.1% Interfund Charges & Transfers $33,680 $35,388 $35,666 $31,115 -$4,273 -12.1% Total Trust and Agency Funds:$2,041,850 $1,964,057 $2,028,134 $1,971,212 $7,155 0.4% Total:$162,797,009 $169,929,100 $164,831,208 $196,573,707 $26,644,607 15.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 49 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 50 SCHEDULE OF REVENUE DETAIL BY FUND General Fund Property Tax C.Yr Secured Property Tax 41101 $35,046,257 $36,625,037 $36,700,000 $38,371,652 $1,746,615 4.8% C.Yr Unsecured Property Tax 41102 $1,274,180 $1,134,981 $1,123,513 $1,193,606 $58,625 5.2% P.Yr Secured Prop Tax 41103 -$108,645 $100,000 $0 $100,000 $0 0% P.Yr Unsecured Property Tax 41104 $48,438 $45,000 $45,000 $45,000 $0 0% Supplemental Property Tax 41105 $748,044 $650,000 $700,000 $750,000 $100,000 15.4% Property Tax Collection Admin 41106 -$457,902 -$474,055 -$512,786 -$501,558 -$27,503 5.8% Interest & Penalties 41107 $213,393 $75,000 $150,000 $150,000 $75,000 100% Property Tax In Lieu of VLF 41108 $6,303,845 $6,532,675 $6,532,675 $6,909,918 $377,243 5.8% Total Property Tax:$43,067,609 $44,688,638 $44,738,402 $47,018,618 $2,329,980 5.2% Other Taxes & Assessments Sales & Use Tax 41201 $11,066,514 $11,350,000 $11,254,000 $11,440,000 $90,000 0.8% PSAF Sales Tax 41203 $513,373 $492,610 $492,610 $530,700 $38,090 7.7% Local Transaction and Use Tax 41205 $0 $0 $1,200,000 $5,943,000 $5,943,000 N/A Transient Occupancy Tax 41211 $7,655,867 $7,415,000 $7,475,272 $7,682,000 $267,000 3.6% Short Term Rental TOT 41212 $1,078,738 $1,200,000 $1,155,129 $1,367,000 $167,000 13.9% Franchise Tax 41213 $1,435,830 $1,250,000 $1,280,000 $1,250,000 $0 0% Real Estate Transfer Tax 41214 $716,788 $800,000 $800,000 $850,000 $50,000 6.3% Business License Tax 41221 $5,422,317 $5,200,000 $5,503,652 $5,850,000 $650,000 12.5% AB 2164 Dis Access & Educ 41224 $879 $0 $0 $900 $900 N/A Total Other Taxes & Assessments:$27,890,306 $27,707,610 $29,160,663 $34,913,600 $7,205,990 26% Licenses & Permits Building Permits 42101 $2,512,240 $2,100,000 $2,100,000 $2,557,433 $457,433 21.8% Building Permits Surcharge 42102 $236,251 $184,000 $184,000 $255,743 $71,743 39% Other Construction Permits 42103 $519,097 $500,000 $480,000 $450,000 -$50,000 -10% Energov Tech Fee Admin 42104 $158,588 $159,551 $159,551 $159,551 $0 0% Right of Way Permits 42105 $661,423 $650,000 $650,000 $695,392 $45,392 7% Outdoor Facilities Permits 42106 $676 $1,368 $676 $676 -$692 -50.6% Entertainment Permits 42108 $5,860 $6,675 $6,675 $6,675 $0 0% Licensing Permits 42111 $1,367 $1,440 $1,400 $1,400 -$40 -2.8% Fire Code Permits - Annual 42201 $111,435 $125,565 $125,565 $125,565 $0 0% Fire Permits - One Time 42202 $7,820 $23,200 $23,200 $23,200 $0 0% Fire Construction Inspections 42203 $45,352 $48,000 $48,000 $31,351 -$16,649 -34.7% Studio Tenant 42204 $3,305 $2,200 $2,200 $2,200 $0 0% Fire Annual Operations Permits 42205 $26,373 $24,592 $24,592 $21,933 -$2,659 -10.8% Police Alarm Permits 42301 $103,103 $105,600 $105,000 $105,600 $0 0% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 51 Animal License Fees 42302 $40,026 $38,000 $38,000 $35,000 -$3,000 -7.9% Film Permits 42401 $66,430 $55,000 $55,000 $66,000 $11,000 20% Total Licenses & Permits:$4,499,346 $4,025,191 $4,003,859 $4,537,719 $512,528 12.7% Fines & Forfeitures Vehicle Code Fines 43101 $62,410 $65,000 $63,000 $65,000 $0 0% Parking Citations 43102 $1,730,601 $2,175,000 $2,175,000 $2,741,865 $566,865 26.1% Fire Fines 43201 $680 $0 $0 $0 $0 0% Comm Dev Fines 43301 $108,536 $90,000 $30,000 $30,000 -$60,000 -66.7% Municipal Code Fines 43401 $250 $5,000 $40,000 $5,000 $0 0% Other Fines & Settlements 43402 $15,406 $41,397 $21,767 $70,078 $28,681 69.3% Public Works Fines 43501 $35,701 $25,000 $40,000 $25,000 $0 0% Total Fines & Forfeitures:$1,953,584 $2,401,397 $2,369,767 $2,936,943 $535,546 22.3% Use of Money & Property Interest Earnings 44101 $1,459,377 $1,375,000 $1,375,000 $1,484,313 $109,313 8% Unrealized Invest Gain/Loss 44102 $448,420 $0 $0 $0 $0 0% Investment Amortization 44103 $390,093 $0 $0 $0 $0 0% Installment Fund Earnings 44204 $11,882 $0 $3,000 $0 $0 0% Other Interest Income 44301 $1,824 $0 $841 $230 $230 N/A Loan Principal 44302 $48,698 $0 $23,428 $19,900 $19,900 N/A Metlox Lease Payments 44401 $602,548 $650,000 $600,000 $691,000 $41,000 6.3% Tennis Club Bldg (Parkview)44402 $357,618 $358,000 $358,000 $370,000 $12,000 3.4% Tennis Club Minimum+% Rent 44403 $180,000 $180,000 $180,000 $180,000 $0 0% 1334 Office Building Rent 44404 $53,742 $53,000 $53,000 $55,000 $2,000 3.8% Tennis Club Parking Lot Lease 44405 $39,026 $39,000 $39,000 $40,000 $1,000 2.6% Minimum Hotel Rent Payments 44406 $400,000 $400,000 $400,000 $400,000 $0 0% Hotel Rent 44407 $2,174,863 $1,600,000 $1,600,000 $1,850,000 $250,000 15.6% Golf Course Rent 44408 $25,744 $20,000 $20,000 $20,000 $0 0% Mall Parking Lot Lease 44409 $227,830 $185,000 $185,000 $185,000 $0 0% Post Office Lease 44410 $58,300 $58,300 $58,300 $58,300 $0 0% Library Parking Lot Lease 44411 $10,434 $9,500 $9,500 $9,500 $0 0% Misc. Rents & Concessions 44412 $33,076 $35,000 $25,000 $31,000 -$4,000 -11.4% Wireless Communication Lease 44421 $212,731 $185,000 $185,000 $196,200 $11,200 6.1% Total Use of Money & Property:$6,736,206 $5,147,800 $5,115,069 $5,590,443 $442,643 8.6% Other Governments Veh Lic Fee Penalties & Int 45121 $43,815 $40,000 $40,000 $45,000 $5,000 12.5% Homeowners Property Tax Relief 45122 $137,614 $145,000 $140,000 $145,000 $0 0% State Mandated Cost Reimb 45123 $76,647 $25,000 $119,972 $25,000 $0 0% STC Reimbursement 45131 $8,414 $6,000 $6,500 $6,800 $800 13.3% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 52 P.O.S.T. Reimbursement 45132 $33,269 $40,000 $50,000 $60,000 $20,000 50% State Grant Programs 45201 $193,147 $0 $25,378 $20,890 $20,890 N/A Federal Grant Programs 45301 $19,535 $0 $96,198 $0 $0 0% Federal/State Emergency Aid 45303 $113,203 $0 $116,455 $0 $0 0% County Grants Programs 45402 $115,113 $0 $73,662 $0 $0 0% Miscellaneous Grants 45601 $2,000 $0 $0 $12,500 $12,500 N/A Total Other Governments:$742,758 $256,000 $668,165 $315,190 $59,190 23.1% Service Charges Building Plan Check Fees 46101 $1,754,456 $1,837,500 $2,000,000 $2,000,000 $162,500 8.8% Comm Dev Digital Document Fee 46102 $310,856 $300,000 $260,000 $0 -$300,000 -100% Building Record Report Fees 46103 $116,318 $100,000 $100,000 $100,000 $0 0% New Residential Unit Fee 46104 $12,600 $105,000 $105,000 $77,000 -$28,000 -26.7% Planning Filing Fees 46111 $283,917 $220,000 $200,000 $508,739 $288,739 131.2% Appeal Fees 46112 $0 $250 $1,400 $1,500 $1,250 500% Traffic Engineering Services 46121 $81,861 $70,000 $75,000 $240,282 $170,282 243.3% Police False Alarm Fees 46201 $80,710 $72,000 $98,000 $80,000 $8,000 11.1% Police Service Fees 46202 $21,667 $30,000 $22,000 $30,000 $0 0% Special Event Staffing Reimb 46203 $172,500 $250,000 $175,000 $180,000 -$70,000 -28% DUI Cost Recovery 46204 $10,605 $10,000 $10,000 $10,000 $0 0% Booking Fee 46205 -$518 $1,000 $0 $0 -$1,000 -100% Boot Removal 46206 $0 $2,000 $1,000 $2,000 $0 0% Vehicle Release Fee 46207 $68,083 $70,000 $75,000 $89,905 $19,905 28.4% Animal Impound Fees 46208 $1,469 $650 $1,500 $1,200 $550 84.6% Fire Reimbursements 46301 $59,150 $125,000 $600,000 $150,024 $25,024 20% Ambulance Fees 46302 $1,826,658 $1,350,000 $1,400,000 $1,450,000 $100,000 7.4% Fire Plan Check 46303 $66,097 $80,000 $80,000 $56,091 -$23,909 -29.9% Fire Inspection Fees 46304 $137,892 $166,634 $166,634 $74,044 -$92,590 -55.6% Fire State Mand. Multi-Fam Ins 46305 $66,167 $59,160 $59,160 $48,056 -$11,104 -18.8% Penalties 46404 $3,181 $0 $3,000 $0 $0 0% Residential City Cost Recovery 46412 $191,665 $100,000 $100,000 $180,000 $80,000 80% Recycling 46415 $121,000 $40,000 $41,000 $42,000 $2,000 5% Constr Debris Plan Review 46416 $107,970 $75,000 $75,000 $75,000 $0 0% Inter-City Median Maintenance 46421 $7,338 $7,500 $7,500 $7,500 $0 0% Street Sweeping 46422 $1,256 $1,200 $2,150 $1,400 $200 16.7% Public Works Misc Fees 46451 $8,878 $7,000 $7,000 $14,703 $7,703 110% Public Works Reimbursement 46452 $6,598 $20,000 $8,000 $39,500 $19,500 97.5% Public Records Request 46461 $100 $0 $0 $0 $0 0% BL Renewal/Application Fee 46470 $0 $0 $0 $90,100 $90,100 N/A Facility & Parks Res *46501 $615,153 $651,600 $652,000 $660,400 $8,800 1.4% Enrichment Classes *46502 $284,196 $300,000 $310,000 $310,000 $10,000 3.3% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 53 Youth & Teen Programs *46503 $568,204 $573,000 $573,000 $628,000 $55,000 9.6% Tennis Operations *46504 $1,151,514 $1,065,000 $1,065,000 $1,065,000 $0 0% Arts/Education Classes *46505 $233,845 $320,000 $340,000 $350,000 $30,000 9.4% Sports Leagues & Tournaments *46506 $197,212 $210,000 $212,000 $217,500 $7,500 3.6% Sports Classes *46507 $581,934 $658,000 $658,000 $668,000 $10,000 1.5% Swimming Classes *46508 $722,226 $682,000 $700,000 $742,000 $60,000 8.8% Concerts in the Park 46509 $10,000 $128,807 $104,460 $124,804 -$4,003 -3.1% Older Adult Activities *46510 $73,083 $75,000 $80,000 $120,000 $45,000 60% Returned Check Fees 46601 $150 $100 $100 $100 $0 0% Reproduction Fees 46602 $5,876 $5,000 $4,000 $16,131 $11,131 222.6% Total Service Charges:$9,961,869 $9,768,401 $10,371,904 $10,450,979 $682,578 7% Miscellaneous Revenues W Comp Salary Continuation 47101 $446,138 $800,000 $600,000 $800,000 $0 0% Damage Claims 47104 $0 $0 $1,078 $0 $0 0% Cash Over/Short 47201 -$4,790 $0 $0 $0 $0 0% Resubmittal of Returned Checks 47202 $7,693 $0 $0 $0 $0 0% Bad Debt Recovery 47203 $15,974 $30,000 $20,000 $5,000 -$25,000 -83.3% Bad Debt Writeoff 47204 -$2,537 -$3,000 -$3,936 -$3,000 $0 0% Miscellaneous Revenues 47301 $12,259 $25,000 $250,000 $25,000 $0 0% P-Card Incentive 47302 $42,132 $50,000 $43,395 $45,000 -$5,000 -10% City Store Sales 47303 $7,177 $27,500 $18,000 $27,500 $0 0% Sale of Property 47306 $3,279 $2,500 $1,175 $2,500 $0 0% Contrs From Private Parties 47307 $45,646 $0 $5,000 $0 $0 0% Bond Proceeds 47408 $0 $0 $0 $13,221,000 $13,221,000 N/A Total Miscellaneous Revenues:$572,971 $932,000 $934,712 $14,123,000 $13,191,000 1,415.3% Interfund Charges & Transfers Operating Service Transfers 49151 $3,731,200 $4,066,118 $4,066,118 $5,533,136 $1,467,018 36.1% Total Interfund Charges & Transfers:$3,731,200 $4,066,118 $4,066,118 $5,533,136 $1,467,018 36.1% Total General Fund:$99,155,850 $98,993,155 $101,428,659 $125,419,628 $26,426,473 26.7% Special Revenue Funds Street Lighting & Landscape Fund Other Taxes & Assessments C.Yr Assessments 41301 $267,582 $269,963 $269,963 $269,664 -$299 -0.1% C.Yr Streetscape Assessments 41303 $106,710 $107,505 $107,505 $107,574 $69 0.1% Total Other Taxes & Assessments:$374,292 $377,468 $377,468 $377,238 -$230 -0.1% Use of Money & Property Unrealized Invest Gain/Loss 44102 $1,478 $0 $0 $0 $0 0% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 54 Total Use of Money & Property:$1,478 $0 $0 $0 $0 0% Miscellaneous Revenues Damage Claims 47104 $7,525 $0 $0 $0 $0 0% Miscellaneous Revenues 47301 $0 $0 $1,281 $0 $0 0% Total Miscellaneous Revenues:$7,525 $0 $1,281 $0 $0 0% Interfund Charges & Transfers Transfers In 49201 $13,273 $13,517 $13,517 $13,765 $248 1.8% Total Interfund Charges & Transfers:$13,273 $13,517 $13,517 $13,765 $248 1.8% Total Street Lighting & Landscape Fund:$396,568 $390,985 $392,266 $391,003 $18 0% Gas Tax Fund Use of Money & Property Interest Earnings 44101 $106,560 $22,000 $108,500 $108,381 $86,381 392.6% Unrealized Invest Gain/Loss 44102 $63,560 $0 $0 $0 $0 0% Total Use of Money & Property:$170,119 $22,000 $108,500 $108,381 $86,381 392.6% Other Governments State Gas Tax 2105 45101 $214,681 $220,219 $223,994 $229,212 $8,993 4.1% State Gas Tax 2106 45102 $157,747 $128,750 $130,072 $132,793 $4,043 3.1% State Gas Tax 2107 45103 $328,330 $306,959 $305,629 $318,514 $11,555 3.8% State Gas Tax 2103 45104 $356,238 $314,991 $328,155 $322,105 $7,114 2.3% SB1 Road Maintenance Rehab 45111 $897,371 $907,812 $895,389 $960,432 $52,620 5.8% SB 821 TDA 45125 $0 $35,212 $0 $27,322 -$7,890 -22.4% Measure R SB Highway 45411 $54,453 $0 $6,677 $0 $0 0% Total Other Governments:$2,008,820 $1,913,943 $1,889,916 $1,990,378 $76,435 4% Total Gas Tax Fund:$2,178,940 $1,935,943 $1,998,416 $2,098,759 $162,816 8.4% Asset Forfeiture Fund Use of Money & Property Interest Earnings 44101 $4,689 $1,800 $5,000 $4,769 $2,969 164.9% Unrealized Invest Gain/Loss 44102 $3,138 $0 $0 $0 $0 0% Total Use of Money & Property:$7,826 $1,800 $5,000 $4,769 $2,969 164.9% Other Governments Fed Forf - D.O.J Regional 45801 $15,171 $0 $0 $0 $0 0% State Forfeitures - Regional 45803 $20,770 $30,000 $60,000 $60,000 $30,000 100% State Forfeitures - Local 45804 $560 $10,000 $1,000 $10,000 $0 0% Fed Forf - Treas Regional 45805 $132,894 $0 $0 $0 $0 0% Total Other Governments:$169,395 $40,000 $61,000 $70,000 $30,000 75% Total Asset Forfeiture Fund:$177,222 $41,800 $66,000 $74,769 $32,969 78.9% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 55 Police Safety Grants Fund Use of Money & Property Interest Earnings 44101 $14,044 $4,000 $14,000 $14,284 $10,284 257.1% Unrealized Invest Gain/Loss 44102 $10,559 $0 $0 $0 $0 0% Total Use of Money & Property:$24,603 $4,000 $14,000 $14,284 $10,284 257.1% Other Governments State Supp Law Enf Serv 45124 $186,159 $185,000 $187,000 $195,000 $10,000 5.4% Total Other Governments:$186,159 $185,000 $187,000 $195,000 $10,000 5.4% Total Police Safety Grants Fund:$210,762 $189,000 $201,000 $209,284 $20,284 10.7% Grants Fund Other Governments State Grant Programs 45201 $0 $245,000 $0 $0 -$245,000 -100% Federal Grant Programs 45301 $0 $3,800,000 $424,849 $0 -$3,800,000 -100% County Grants Programs 45402 $0 $900,000 $0 $0 -$900,000 -100% Total Other Governments:$0 $4,945,000 $424,849 $0 -$4,945,000 -100% Miscellaneous Revenues Contrs From Private Parties 47307 $0 $375,000 $0 $0 -$375,000 -100% Total Miscellaneous Revenues:$0 $375,000 $0 $0 -$375,000 -100% Total Grants Fund:$0 $5,320,000 $424,849 $0 -$5,320,000 -100% Prop. A Fund Other Taxes & Assessments Transit Sales Tax 41204 $925,475 $964,294 $964,294 $884,540 -$79,754 -8.3% Total Other Taxes & Assessments:$925,475 $964,294 $964,294 $884,540 -$79,754 -8.3% Use of Money & Property Interest Earnings 44101 $29,936 $3,000 $28,500 $30,448 $27,448 914.9% Unrealized Invest Gain/Loss 44102 $14,014 $0 $0 $0 $0 0% Total Use of Money & Property:$43,950 $3,000 $28,500 $30,448 $27,448 914.9% Service Charges Dial-A-Ride Fares 46521 $2,335 $3,000 $1,000 $3,000 $0 0% Bus Pass Subsidies 46522 $468 $800 $400 $800 $0 0% Total Service Charges:$2,803 $3,800 $1,400 $3,800 $0 0% Miscellaneous Revenues Miscellaneous Revenues 47301 $0 $17,500 $0 $0 -$17,500 -100% Total Miscellaneous Revenues:$0 $17,500 $0 $0 -$17,500 -100% Total Prop. A Fund:$972,228 $988,594 $994,194 $918,788 -$69,806 -7.1% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 56 Prop. C Fund Other Taxes & Assessments Transit Sales Tax 41204 $767,660 $799,856 $799,856 $733,703 -$66,153 -8.3% Total Other Taxes & Assessments:$767,660 $799,856 $799,856 $733,703 -$66,153 -8.3% Use of Money & Property Interest Earnings 44101 $42,706 $3,000 $43,520 $43,436 $40,436 1,347.9% Unrealized Invest Gain/Loss 44102 $78,292 $0 $0 $0 $0 0% Total Use of Money & Property:$120,998 $3,000 $43,520 $43,436 $40,436 1,347.9% Other Governments Measure R SB Highway 45411 $573,192 $0 $91,882 $0 $0 0% MTA Call For Grants 45412 $0 $0 $23,958 $0 $0 0% Total Other Governments:$573,192 $0 $115,840 $0 $0 0% Total Prop. C Fund:$1,461,850 $802,856 $959,216 $777,139 -$25,717 -3.2% AB 2766 Air Quality Fund Use of Money & Property Interest Earnings 44101 $7,249 $1,500 $7,000 $7,373 $5,873 391.5% Unrealized Invest Gain/Loss 44102 $3,613 $0 $0 $0 $0 0% Total Use of Money & Property:$10,862 $1,500 $7,000 $7,373 $5,873 391.5% Other Governments AB 2766 Air Quality 45501 $34,582 $46,000 $46,000 $46,000 $0 0% Total Other Governments:$34,582 $46,000 $46,000 $46,000 $0 0% Total AB 2766 Air Quality Fund:$45,444 $47,500 $53,000 $53,373 $5,873 12.4% Measure R Fund Other Taxes & Assessments Transit Sales Tax 41204 $575,565 $599,892 $599,892 $550,277 -$49,615 -8.3% Total Other Taxes & Assessments:$575,565 $599,892 $599,892 $550,277 -$49,615 -8.3% Use of Money & Property Interest Earnings 44101 $59,146 $15,000 $57,700 $60,156 $45,156 301% Unrealized Invest Gain/Loss 44102 $57,858 $0 $0 $0 $0 0% Total Use of Money & Property:$117,004 $15,000 $57,700 $60,156 $45,156 301% Other Governments SB 821 TDA 45125 $99,677 $0 $0 $0 $0 0% Federal Grant Programs 45301 $32,892 $0 $57,545 $0 $0 0% County Grants Programs 45402 $729,686 $350,000 $351,676 $0 -$350,000 -100% Total Other Governments:$862,255 $350,000 $409,221 $0 -$350,000 -100% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 57 Miscellaneous Revenues Contrs From Private Parties 47307 $1,579 $0 $0 $0 $0 0% Total Miscellaneous Revenues:$1,579 $0 $0 $0 $0 0% Total Measure R Fund:$1,556,402 $964,892 $1,066,813 $610,433 -$354,459 -36.7% Measure M Fund Other Taxes & Assessments Transit Sales Tax 41204 $649,935 $679,878 $679,878 $623,647 -$56,231 -8.3% Total Other Taxes & Assessments:$649,935 $679,878 $679,878 $623,647 -$56,231 -8.3% Use of Money & Property Interest Earnings 44101 $30,460 $8,000 $33,870 $30,981 $22,981 287.3% Unrealized Invest Gain/Loss 44102 $63,132 $0 $0 $0 $0 0% Total Use of Money & Property:$93,592 $8,000 $33,870 $30,981 $22,981 287.3% Other Governments County Grants Programs 45402 $0 $860,000 $20,000 $0 -$860,000 -100% Miscellaneous Grants 45601 $336,513 $4,963,000 $1,166,070 $0 -$4,963,000 -100% Total Other Governments:$336,513 $5,823,000 $1,186,070 $0 -$5,823,000 -100% Total Measure M Fund:$1,080,040 $6,510,878 $1,899,818 $654,628 -$5,856,250 -89.9% Measure W Fund Property Tax Measure W Parcel Tax 41109 $409,929 $410,000 $410,000 $410,000 $0 0% Total Property Tax:$409,929 $410,000 $410,000 $410,000 $0 0% Use of Money & Property Interest Earnings 44101 $53,291 $1,500 $53,737 $54,201 $52,701 3,513.4% Unrealized Invest Gain/Loss 44102 $52,903 $0 $0 $0 $0 0% Total Use of Money & Property:$106,194 $1,500 $53,737 $54,201 $52,701 3,513.4% Other Governments County Grants Program 45402 $344,928 $0 $384,891 $4,055,000 $4,055,000 N/A Total Other Governments:$344,928 $0 $384,891 $4,055,000 $4,055,000 N/A Total Measure W Fund:$861,051 $411,500 $848,628 $4,519,201 $4,107,701 998.2% Total Special Revenue Funds:$8,940,506 $17,603,948 $8,904,200 $10,307,377 -$7,296,571 -41.4% Capital Improvement Fund Other Taxes & Assessments Transient Occupancy Tax 41211 $920,868 $889,800 $897,033 $921,000 $31,200 3.5% Short Term Rental TOT 41212 $141,643 $144,000 $138,615 $163,000 $19,000 13.2% Total Other Taxes & Assessments:$1,062,511 $1,033,800 $1,035,648 $1,084,000 $50,200 4.9% Licenses & Permits Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 58 Park Development/Quimby 42107 $41,791 $10,902 $21,804 $21,804 $10,902 100% Total Licenses & Permits:$41,791 $10,902 $21,804 $21,804 $10,902 100% Fines & Forfeitures Parking Citations 43102 $78,284 $99,600 $99,000 $0 -$99,600 -100% Total Fines & Forfeitures:$78,284 $99,600 $99,000 $0 -$99,600 -100% Use of Money & Property Installment Fund Earnings 44204 $2,444 $0 $0 $0 $0 0% Total Use of Money & Property:$2,444 $0 $0 $0 $0 0% Other Governments State Grant Programs 45201 $199,955 $0 $0 $0 $0 0% Federal Grant Programs 45301 $338,109 $0 $152 $0 $0 0% County Grants Programs 45402 $550,000 $0 $0 $0 $0 0% Miscellaneous Grants 45601 $619,000 $0 $0 $0 $0 0% Total Other Governments:$1,707,064 $0 $152 $0 $0 0% Service Charges Parking Meters 46431 $596,949 $570,000 $565,873 $0 -$570,000 -100% Total Service Charges:$596,949 $570,000 $565,873 $0 -$570,000 -100% Miscellaneous Revenues Contrs From Private Parties 47307 $156,558 $0 $30,000 $0 $0 0% Total Miscellaneous Revenues:$156,558 $0 $30,000 $0 $0 0% Total Capital Improvement Fund:$3,645,600 $1,714,302 $1,752,477 $1,105,804 -$608,498 -35.5% Bond Construction Fund Use of Money & Property Interest Earnings 44101 $34,097 $0 $18,015 $0 $0 0% Unrealized Invest Gain/Loss 44102 $196,738 $0 $0 $0 $0 0% Total Use of Money & Property:$230,835 $0 $18,015 $0 $0 0% Total Bond Construction Fund:$230,835 $0 $18,015 $0 $0 0% UAD Construction Fund Use of Money & Property Interest Earnings 44101 $56,137 $0 $47,745 $57,096 $57,096 N/A Unrealized Invest Gain/Loss 44102 $65,012 $0 $0 $0 $0 0% Total Use of Money & Property:$121,149 $0 $47,745 $57,096 $57,096 N/A Total UAD Construction Fund:$121,149 $0 $47,745 $57,096 $57,096 N/A Enterprise Funds Water Fund Use of Money & Property Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 59 Interest Earnings 44101 $322,991 $200,000 $307,242 $328,510 $128,510 64.3% Unrealized Invest Gain/Loss 44102 $548,333 $0 $0 $0 $0 0% Investment Amortization 44103 $62,215 $0 $0 $0 $0 0% Total Use of Money & Property:$933,539 $200,000 $307,242 $328,510 $128,510 64.3% Other Governments Federal/State Emergency Aid 45303 $86,901 $0 $0 $0 $0 0% Total Other Governments:$86,901 $0 $0 $0 $0 0% Service Charges Utility Service Charges 46401 $15,410,243 $16,446,770 $16,839,579 $18,000,000 $1,553,230 9.4% Utility Connection Fees 46402 $163,764 $100,000 $140,644 $198,468 $98,468 98.5% Meter Installation 46403 $102,611 $50,000 $85,000 $91,104 $41,104 82.2% Penalties 46404 $52,701 $45,000 $45,000 $50,000 $5,000 11.1% Total Service Charges:$15,729,319 $16,641,770 $17,110,223 $18,339,572 $1,697,802 10.2% Miscellaneous Revenues Damage Claims 47104 $6,289 $0 $4,528 $0 $0 0% Bad Debt Recovery 47203 $44,368 $5,000 $5,000 $4,000 -$1,000 -20% Bad Debt Writeoff 47204 -$30,587 -$20,000 -$20,000 -$20,000 $0 0% Miscellaneous Revenues 47301 $3,815 $5,000 $0 $5,000 $0 0% Sale of Property 47306 $17,173 $1,000 $0 $1,000 $0 0% Total Miscellaneous Revenues:$41,058 -$9,000 -$10,472 -$10,000 -$1,000 11.1% Total Water Fund:$16,790,816 $16,832,770 $17,406,993 $18,658,082 $1,825,312 10.8% Storm Drain Fund Use of Money & Property Interest Earnings 44101 $78,153 $50,000 $75,108 $79,488 $29,488 59% Unrealized Invest Gain/Loss 44102 $49,590 $0 $0 $0 $0 0% Investment Amortization 44103 $17,187 $0 $0 $0 $0 0% Total Use of Money & Property:$144,930 $50,000 $75,108 $79,488 $29,488 59% Service Charges Utility Service Charges 46401 $351,772 $2,122,340 $2,122,340 $2,122,340 $0 0% Street Sweeping 46422 $4,482 $5,000 $4,482 $4,500 -$500 -10% Total Service Charges:$356,255 $2,127,340 $2,126,822 $2,126,840 -$500 0% Miscellaneous Revenues Miscellaneous Revenues 47301 $1,687 $50,000 $0 $50,000 $0 0% Total Miscellaneous Revenues:$1,687 $50,000 $0 $50,000 $0 0% Total Storm Drain Fund:$502,872 $2,227,340 $2,201,930 $2,256,328 $28,988 1.3% Sewer Fund Licenses & Permits Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 60 Fats, Oil, Grease Permit 42109 $21,841 $20,000 $20,000 $33,963 $13,963 69.8% Total Licenses & Permits:$21,841 $20,000 $20,000 $33,963 $13,963 69.8% Use of Money & Property Interest Earnings 44101 $484,572 $300,000 $470,893 $492,852 $192,852 64.3% Unrealized Invest Gain/Loss 44102 $362,505 $0 $0 $0 $0 0% Investment Amortization 44103 $71,338 $0 $0 $0 $0 0% Total Use of Money & Property:$918,415 $300,000 $470,893 $492,852 $192,852 64.3% Other Governments Federal/State Emergency Aid 45303 $16,959 $0 $0 $0 $0 0% Total Other Governments:$16,959 $0 $0 $0 $0 0% Service Charges Utility Service Charges 46401 $3,294,732 $3,798,070 $3,905,235 $4,000,000 $201,930 5.3% Utility Connection Fees 46402 $244,553 $150,000 $150,000 $175,000 $25,000 16.7% Penalties 46404 $9,574 $10,000 $10,000 $10,000 $0 0% Total Service Charges:$3,548,859 $3,958,070 $4,065,235 $4,185,000 $226,930 5.7% Miscellaneous Revenues Damage Claims 47104 $48,900 $0 $0 $0 $0 0% Bad Debt Recovery 47203 $7,934 $0 $0 $0 $0 0% Bad Debt Writeoff 47204 -$7,970 -$5,000 -$5,000 -$5,000 $0 0% Total Miscellaneous Revenues:$48,864 -$5,000 -$5,000 -$5,000 $0 0% Total Sewer Fund:$4,554,938 $4,273,070 $4,551,128 $4,706,815 $433,745 10.2% Parking Fund Other Taxes & Assessments B.I.D- A License Surcharge 41222 $121,871 $110,000 $116,057 $110,000 $0 0% B.I.D- B License Surcharge 41223 $25,250 $25,000 $25,000 $25,000 $0 0% Total Other Taxes & Assessments:$147,121 $135,000 $141,057 $135,000 $0 0% Use of Money & Property Interest Earnings 44101 $124,407 $75,000 $125,595 $126,533 $51,533 68.7% Unrealized Invest Gain/Loss 44102 $59,477 $0 $0 $0 $0 0% Investment Amortization 44103 $16,904 $0 $0 $0 $0 0% Installment Fund Earnings 44204 $1,811 $0 $0 $0 $0 0% Total Use of Money & Property:$202,598 $75,000 $125,595 $126,533 $51,533 68.7% Service Charges Permit Parking Program 46122 $2,745 $6,000 $0 $6,000 $0 0% Parking Meters 46431 $3,984,842 $3,925,000 $3,895,967 $5,517,094 $1,592,094 40.6% Parking Lot Spaces 46432 $213,896 $225,000 $225,000 $443,500 $218,500 97.1% EV Charging 46439 $0 $0 $0 $33,600 $33,600 N/A Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 61 Total Service Charges:$4,201,483 $4,156,000 $4,120,967 $6,000,194 $1,844,194 44.4% Miscellaneous Revenues Miscellaneous Revenues 47301 $11,986 $11,700 $11,700 $11,700 $0 0% Contrs From Private Parties 47307 $13,762 $10,000 $7,029 $10,000 $0 0% Total Miscellaneous Revenues:$25,748 $21,700 $18,729 $21,700 $0 0% Total Parking Fund:$4,576,949 $4,387,700 $4,406,348 $6,283,427 $1,895,727 43.2% County Parking Lots Fund Service Charges Parking Lot B Meters 46433 $254,879 $260,000 $284,617 $424,418 $164,418 63.2% Parking Lot C Meters 46434 $756,940 $840,000 $821,870 $1,152,542 $312,542 37.2% Parking Lot B Spaces 46435 $1,050 $1,200 $1,200 $1,200 $0 0% Parking Lot C Spaces 46436 $9,700 $10,000 $10,000 $10,000 $0 0% Total Service Charges:$1,022,569 $1,111,200 $1,117,687 $1,588,160 $476,960 42.9% Total County Parking Lots Fund:$1,022,569 $1,111,200 $1,117,687 $1,588,160 $476,960 42.9% State Pier & Parking Lot Fund Use of Money & Property Interest Earnings 44101 $75,658 $35,000 $58,100 $76,951 $41,951 119.9% Unrealized Invest Gain/Loss 44102 $11,277 $0 $0 $0 $0 0% Investment Amortization 44103 $25,313 $0 $0 $0 $0 0% Total Use of Money & Property:$112,249 $35,000 $58,100 $76,951 $41,951 119.9% Service Charges Parking Meters 46431 $775,897 $835,000 $759,264 $1,078,434 $243,434 29.2% EV Charging 46439 $0 $0 $0 $5,900 $5,900 N/A Total Service Charges:$775,897 $835,000 $759,264 $1,084,334 $249,334 29.9% Miscellaneous Revenues Miscellaneous Revenues 47301 $0 $500 $300 $500 $0 0% Total Miscellaneous Revenues:$0 $500 $300 $500 $0 0% Total State Pier & Parking Lot Fund:$888,145 $870,500 $817,664 $1,161,785 $291,285 33.5% Total Enterprise Funds:$28,336,290 $29,702,580 $30,501,750 $34,654,597 $4,952,017 16.7% Internal Service Funds Insurance Reserve Fund Miscellaneous Revenues Excess of SIR Recoveries 47102 $631,732 $600,000 $600,000 $600,000 $0 0% Insurance Recoveries/Dividends 47103 $179,568 $0 $5,000 $0 $0 0% Cobra Payments 47105 $179 $0 $0 $0 $0 0% Miscellaneous Revenues 47301 $401 $0 $0 $0 $0 0% Total Miscellaneous Revenues:$811,881 $600,000 $605,000 $600,000 $0 0% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 62 Interfund Charges & Transfers Workers Comp Billing 49101 $4,754,880 $4,483,020 $4,483,020 $4,348,860 -$134,160 -3% Unemployment Billings 49102 $60,000 $60,000 $60,000 $60,000 $0 0% Liability Insurance Billings 49103 $3,692,156 $4,080,960 $4,080,960 $5,107,440 $1,026,480 25.2% Total Interfund Charges & Transfers:$8,507,036 $8,623,980 $8,623,980 $9,516,300 $892,320 10.3% Total Insurance Reserve Fund:$9,318,917 $9,223,980 $9,228,980 $10,116,300 $892,320 9.7% Information Technology Fund Licenses & Permits Energov Tech Fee Admin 42104 $0 $0 $0 $608,788 $608,788 N/A Total Licenses & Permits:$0 $0 $0 $608,788 $608,788 N/A Interfund Charges & Transfers Information System Charge 49121 $4,404,768 $4,660,060 $4,660,060 $5,817,158 $1,157,098 24.8% Total Interfund Charges & Transfers:$4,404,768 $4,660,060 $4,660,060 $5,817,158 $1,157,098 24.8% Total Information Technology Fund:$4,404,768 $4,660,060 $4,660,060 $6,425,946 $1,765,886 37.9% Fleet Management Fund Miscellaneous Revenues Damage Claims 47104 $0 $0 $123,473 $0 $0 0% Miscellaneous Revenues 47301 $0 $0 $505 $0 $0 0% Sale of Property 47306 $22,200 $0 $72,550 $0 $0 0% Reimb- Gas charges MBUSD 47902 $36,065 $25,000 $22,642 $25,000 $0 0% Total Miscellaneous Revenues:$58,265 $25,000 $219,170 $25,000 $0 0% Interfund Charges & Transfers Fleet Rental Charges 49111 $1,325,508 $1,489,170 $1,489,170 $1,697,910 $208,740 14% Fleet Maintenance Charge 49112 $1,438,091 $1,820,189 $1,820,189 $1,800,995 -$19,194 -1.1% Transfers In 49201 $1,011,741 $0 $0 $0 $0 0% Total Interfund Charges & Transfers:$3,775,340 $3,309,359 $3,309,359 $3,498,905 $189,546 5.7% Total Fleet Management Fund:$3,833,606 $3,334,359 $3,528,529 $3,523,905 $189,546 5.7% Building Maintenance & Ops Fund Interfund Charges & Transfers Building Maintenance 49131 $2,617,746 $2,561,139 $2,561,139 $2,826,842 $265,703 10.4% Warehouse Sales 49141 $130,825 $128,720 $128,720 $135,000 $6,280 4.9% Garage Sales 49142 $19,068 $42,800 $42,800 $30,000 -$12,800 -29.9% Total Interfund Charges & Transfers:$2,767,639 $2,732,659 $2,732,659 $2,991,842 $259,183 9.5% Total Building Maintenance & Ops Fund:$2,767,639 $2,732,659 $2,732,659 $2,991,842 $259,183 9.5% Total Internal Service Funds:$20,324,930 $19,951,058 $20,150,228 $23,057,993 $3,106,935 15.6% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 63 Trust and Agency Funds Spec. Assess. Redemption Fund Other Taxes & Assessments C.Yr Assessments 41301 $620,616 $714,150 $714,150 $714,150 $0 0% Total Other Taxes & Assessments:$620,616 $714,150 $714,150 $714,150 $0 0% Use of Money & Property Bond Reserve Fund Earnings 44202 $24,284 $0 $20,000 $0 $0 0% Installment Fund Earnings 44204 $1,646 $0 $1,500 $0 $0 0% Total Use of Money & Property:$25,930 $0 $21,500 $0 $0 0% Total Spec. Assess. Redemption Fund:$646,546 $714,150 $735,650 $714,150 $0 0% Spec. Assess. UAD 12 & 14 Fund Other Taxes & Assessments C.Yr Assessments 41301 $556,868 $606,106 $606,106 $606,106 $0 0% Total Other Taxes & Assessments:$556,868 $606,106 $606,106 $606,106 $0 0% Use of Money & Property Bond Reserve Fund Earnings 44202 $14,798 $0 $12,000 $0 $0 0% Installment Fund Earnings 44204 $5,877 $0 $4,000 $0 $0 0% Total Use of Money & Property:$20,675 $0 $16,000 $0 $0 0% Miscellaneous Revenues Bond Redemption 47407 $20,502 $0 $19,428 $0 $0 0% Total Miscellaneous Revenues:$20,502 $0 $19,428 $0 $0 0% Total Spec. Assess. UAD 12 & 14 Fund:$598,045 $606,106 $641,534 $606,106 $0 0% Spec. Assess. UAD 19-4 Fund Other Taxes & Assessments C.Yr Assessments 41301 $336,371 $337,613 $337,613 $337,613 $0 0% Total Other Taxes & Assessments:$336,371 $337,613 $337,613 $337,613 $0 0% Use of Money & Property Bond Reserve Fund Earnings 44202 $8,416 $0 $6,500 $0 $0 0% Installment Fund Earnings 44204 $2,340 $0 $1,000 $0 $0 0% Total Use of Money & Property:$10,756 $0 $7,500 $0 $0 0% Total Spec. Assess. UAD 19-4 Fund:$347,127 $337,613 $345,113 $337,613 $0 0% Pension Trust Fund Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 64 Use of Money & Property Interest Earnings 44101 $225 $800 $171 $228 -$572 -71.5% Unrealized Invest Gain/Loss 44102 $147 $0 $0 $0 $0 0% Total Use of Money & Property:$372 $800 $171 $228 -$572 -71.5% Miscellaneous Revenues Reimb Ca Emplr Ret Ben Trst 47901 $168,278 $170,000 $170,000 $182,000 $12,000 7.1% Total Miscellaneous Revenues:$168,278 $170,000 $170,000 $182,000 $12,000 7.1% Interfund Charges & Transfers Contributions 49202 $33,680 $35,388 $35,666 $31,115 -$4,273 -12.1% Total Interfund Charges & Transfers:$33,680 $35,388 $35,666 $31,115 -$4,273 -12.1% Total Pension Trust Fund:$202,330 $206,188 $205,837 $213,343 $7,155 3.5% Section 115 Trust Fund Use of Money & Property PARS Section 115 Interest 44206 $247,802 $100,000 $100,000 $100,000 $0 0% Total Use of Money & Property:$247,802 $100,000 $100,000 $100,000 $0 0% Total Section 115 Trust Fund:$247,802 $100,000 $100,000 $100,000 $0 0% Total Trust and Agency Funds:$2,041,850 $1,964,057 $2,028,134 $1,971,212 $7,155 0.4% Total:$162,797,009 $169,929,100 $164,831,208 $196,573,707 $26,644,607 15.7% Name ERP Code FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 65 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 66 REVENUES BY SOURCE FY 2026 General Fund Revenues by Source Property Tax (37.5%)Property Tax (37.5%)Property Tax (37.5%) Other Taxes & Assessments (27.8%)Other Taxes & Assessments (27.8%)Other Taxes & Assessments (27.8%) Miscellaneous Revenues (11.3%)Miscellaneous Revenues (11.3%)Miscellaneous Revenues (11.3%) Service Charges (8.3%)Service Charges (8.3%)Service Charges (8.3%) Use of Money & Property (4.5%)Use of Money & Property (4.5%)Use of Money & Property (4.5%) Interfund Charges & Transfers (4.4%)Interfund Charges & Transfers (4.4%)Interfund Charges & Transfers (4.4%) Licenses & Permits (3.6%)Licenses & Permits (3.6%)Licenses & Permits (3.6%) Fines & Forfeitures (2.3%)Fines & Forfeitures (2.3%)Fines & Forfeitures (2.3%) Other Governments (0.2%)Other Governments (0.2%)Other Governments (0.2%) Revenue Source Property Tax 41101 - C.Yr Secured Property Tax $35,046,257 $36,625,037 $36,700,000 $38,371,652 $1,746,615 4.8% 41102 - C.Yr Unsecured Property Tax $1,274,180 $1,134,981 $1,123,513 $1,193,606 $58,625 5.2% 41103 - P.Yr Secured Prop Tax -$108,645 $100,000 $0 $100,000 $0 0% 41104 - P.Yr Unsecured Property Tax $48,438 $45,000 $45,000 $45,000 $0 0% 41105 - Supplemental Property Tax $748,044 $650,000 $700,000 $750,000 $100,000 15.4% 41106 - Property Tax Collection Admin -$457,902 -$474,055 -$512,786 -$501,558 -$27,503 5.8% 41107 - Interest & Penalties $213,393 $75,000 $150,000 $150,000 $75,000 100% 41108 - Property Tax In Lieu of VLF $6,303,845 $6,532,675 $6,532,675 $6,909,918 $377,243 5.8% Total Property Tax:$43,067,609 $44,688,638 $44,738,402 $47,018,618 $2,329,980 5.2% Other Taxes & Assessments 41201 - Sales & Use Tax $11,066,514 $11,350,000 $11,254,000 $11,440,000 $90,000 0.8% 41203 - PSAF Sales Tax $513,373 $492,610 $492,610 $530,700 $38,090 7.7% 41211 - Transient Occupancy Tax $7,655,867 $7,415,000 $7,475,272 $7,682,000 $267,000 3.6% 41212 - Short-Term Rental TOT $1,078,738 $1,200,000 $1,155,129 $1,367,000 $167,000 13.9% 41213 - Franchise Tax $1,435,830 $1,250,000 $1,280,000 $1,250,000 $0 0% 41214 - Real Estate Transfer Tax $716,788 $800,000 $800,000 $850,000 $50,000 6.3% 41221 - Business License Tax $5,422,317 $5,200,000 $5,503,652 $5,850,000 $650,000 12.5% 41224 - AB 1379 Dis Access & Educ $879 $0 $0 $900 $900 N/A 41205-Local Transaction and Use Tax $0 $0 $1,200,000 $5,943,000 $5,943,000 N/A Total Other Taxes & Assessments:$27,890,306 $27,707,610 $29,160,663 $34,913,600 $7,205,990 26% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 67 Licenses & Permits 42101 - Building Permits $2,512,240 $2,100,000 $2,100,000 $2,557,433 $457,433 21.8% 42102 - Building Permits Surcharge $236,251 $184,000 $184,000 $255,743 $71,743 39% 42103 - Other Construction Permits $519,097 $500,000 $480,000 $450,000 -$50,000 -10% 42104 - Energov Tech Fee Admin $158,588 $159,551 $159,551 $159,551 $0 0% 42105 - Right of Way Permits $661,423 $650,000 $650,000 $695,392 $45,392 7% 42106 - Outdoor Facilities Permits $676 $1,368 $676 $676 -$692 -50.6% 42108 - Entertainment Permits $5,860 $6,675 $6,675 $6,675 $0 0% 42111 - Licensing Permits $1,367 $1,440 $1,400 $1,400 -$40 -2.8% 42201 - Fire Code Permits - Annual $111,435 $125,565 $125,565 $125,565 $0 0% 42202 - Fire Permits - One Time $7,820 $23,200 $23,200 $23,200 $0 0% 42203 - Fire Construction Inspections $45,352 $48,000 $48,000 $31,351 -$16,649 -34.7% 42204 - Studio Tenant $3,305 $2,200 $2,200 $2,200 $0 0% 42205 - Fire Annual Operations Permits $26,373 $24,592 $24,592 $21,933 -$2,659 -10.8% 42301 - Police Alarm Permits $103,103 $105,600 $105,000 $105,600 $0 0% 42302 - Animal License Fees $40,026 $38,000 $38,000 $35,000 -$3,000 -7.9% 42401 - Film Permits $66,430 $55,000 $55,000 $66,000 $11,000 20% Total Licenses & Permits:$4,499,346 $4,025,191 $4,003,859 $4,537,719 $512,528 12.7% Fines & Forfeitures 43101 - Vehicle Code Fines $62,410 $65,000 $63,000 $65,000 $0 0% 43102 - Parking Citations $1,730,601 $2,175,000 $2,175,000 $2,741,865 $566,865 26.1% 43201 - Fire Fines $680 $0 $0 $0 $0 0% 43301 - Comm Dev Fines $108,536 $90,000 $30,000 $30,000 -$60,000 -66.7% 43401 - Municipal Code Fines $250 $5,000 $40,000 $5,000 $0 0% 43402 - Other Fines & Settlements $15,406 $41,397 $21,767 $70,078 $28,681 69.3% 43501 - Public Works Fines $35,701 $25,000 $40,000 $25,000 $0 0% Total Fines & Forfeitures:$1,953,584 $2,401,397 $2,369,767 $2,936,943 $535,546 22.3% Use of Money & Property 44101 - Interest Earnings $1,459,377 $1,375,000 $1,375,000 $1,484,313 $109,313 8% 44102 - Unrealized Invest Gain/Loss $448,420 $0 $0 $0 $0 0% 44103 - Investment Amortization $390,093 $0 $0 $0 $0 0% 44204 - Installment Fund Earnings $11,882 $0 $3,000 $0 $0 0% 44301 - Other Interest Income $1,824 $0 $841 $230 $230 N/A 44302 - Loan Principal $48,698 $0 $23,428 $19,900 $19,900 N/A 44401 - Metlox Lease Payments $602,548 $650,000 $600,000 $691,000 $41,000 6.3% 44402 - Tennis Club Bldg (Parkview)$357,618 $358,000 $358,000 $370,000 $12,000 3.4% 44403 - Tennis Club Minimum+% Rent $180,000 $180,000 $180,000 $180,000 $0 0% 44404 - 1334 Office Building Rent $53,742 $53,000 $53,000 $55,000 $2,000 3.8% 44405 - Tennis Club Parking Lot Lease $39,026 $39,000 $39,000 $40,000 $1,000 2.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 68 44406 - Minimum Hotel Rent Payments $400,000 $400,000 $400,000 $400,000 $0 0% 44407 - Hotel Rent $2,174,863 $1,600,000 $1,600,000 $1,850,000 $250,000 15.6% 44408 - Golf Course Rent $25,744 $20,000 $20,000 $20,000 $0 0% 44409 - Mall Parking Lot Lease $227,830 $185,000 $185,000 $185,000 $0 0% 44410 - Post Office Lease $58,300 $58,300 $58,300 $58,300 $0 0% 44411 - Library Parking Lot Lease $10,434 $9,500 $9,500 $9,500 $0 0% 44412 - Misc. Rents & Concessions $33,076 $35,000 $25,000 $31,000 -$4,000 -11.4% 44421 - Wireless Communication Lease $212,731 $185,000 $185,000 $196,200 $11,200 6.1% Total Use of Money & Property:$6,736,206 $5,147,800 $5,115,069 $5,590,443 $442,643 8.6% Other Governments 45121 - Veh Lic Fee Penalties & Int $43,815 $40,000 $40,000 $45,000 $5,000 12.5% 45122 - Homeowners Property Tax Relief $137,614 $145,000 $140,000 $145,000 $0 0% 45123 - State Mandated Cost Reimb $76,647 $25,000 $119,972 $25,000 $0 0% 45131 - STC Reimbursement $8,414 $6,000 $6,500 $6,800 $800 13.3% 45132 - P.O.S.T. Reimbursement $33,269 $40,000 $50,000 $60,000 $20,000 50% 45201 - State Grant Programs $193,147 $0 $25,378 $20,890 $20,890 N/A 45301 - Federal Grant Programs $19,535 $0 $96,198 $0 $0 0% 45303 - Federal/State Emergency Aid $113,203 $0 $116,455 $0 $0 0% 45402 - County Grants Programs $115,113 $0 $73,662 $0 $0 0% 45601 - Miscellaneous Grants $2,000 $0 $0 $12,500 $12,500 N/A Total Other Governments:$742,758 $256,000 $668,165 $315,190 $59,190 23.1% Service Charges 46101 - Building Plan Check Fees $1,754,456 $1,837,500 $2,000,000 $2,000,000 $162,500 8.8% 46102 - Comm Dev Digital Document Fee $310,856 $300,000 $260,000 $0 -$300,000 -100% 46103 - Building Record Report Fees $116,318 $100,000 $100,000 $100,000 $0 0% 46104 - New Residential Unit Fee $12,600 $105,000 $105,000 $77,000 -$28,000 -26.7% 46111 - Planning Filing Fees $283,917 $220,000 $200,000 $508,739 $288,739 131.2% 46112 - Appeal Fees $0 $250 $1,400 $1,500 $1,250 500% 46121 - Traffic Engineering Services $81,861 $70,000 $75,000 $240,282 $170,282 243.3% 46201 - Police False Alarm Fees $80,710 $72,000 $98,000 $80,000 $8,000 11.1% 46202 - Police Service Fees $21,667 $30,000 $22,000 $30,000 $0 0% 46203 - Special Event Staffing Reimb $172,500 $250,000 $175,000 $180,000 -$70,000 -28% 46204 - DUI Cost Recovery $10,605 $10,000 $10,000 $10,000 $0 0% 46205 - Booking Fee -$518 $1,000 $0 $0 -$1,000 -100% 46206 - Boot Removal $0 $2,000 $1,000 $2,000 $0 0% 46207 - Vehicle Release Fee $68,083 $70,000 $75,000 $89,905 $19,905 28.4% 46208 - Animal Impound Fees $1,469 $650 $1,500 $1,200 $550 84.6% 46301 - Fire Reimbursements $59,150 $125,000 $600,000 $150,024 $25,024 20% 46302 - Ambulance Fees $1,826,658 $1,350,000 $1,400,000 $1,450,000 $100,000 7.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 69 46303 - Fire Plan Check $66,097 $80,000 $80,000 $56,091 -$23,909 -29.9% 46304 - Fire Inspection Fees $137,892 $166,634 $166,634 $74,044 -$92,590 -55.6% 46305 - Fire State Mand. Multi-Fam Ins $66,167 $59,160 $59,160 $48,056 -$11,104 -18.8% 46404 - Penalties $3,181 $0 $3,000 $0 $0 0% 46412 - Residential City Cost Recovery $191,665 $100,000 $100,000 $180,000 $80,000 80% 46415 - Recycling $121,000 $40,000 $41,000 $42,000 $2,000 5% 46416 - Constr Debris Plan Review $107,970 $75,000 $75,000 $75,000 $0 0% 46421 - Inter-City Median Maintenance $7,338 $7,500 $7,500 $7,500 $0 0% 46422 - Street Sweeping $1,256 $1,200 $2,150 $1,400 $200 16.7% 46451 - Public Works Misc Fees $8,878 $7,000 $7,000 $14,703 $7,703 110% 46452 - Public Works Reimbursement $6,598 $20,000 $8,000 $39,500 $19,500 97.5% 46461 - Public Records Request $100 $0 $0 $0 $0 0% 46470-BL Renewal/Application Fee $0 $0 $0 $90,100 $90,100 N/A 46501 - Facility & Parks Res *$615,153 $651,600 $652,000 $660,400 $8,800 1.4% 46502 - Special Activities Classes *$284,196 $300,000 $310,000 $310,000 $10,000 3.3% 46503 - Youth & Teen Programs *$568,204 $573,000 $573,000 $628,000 $55,000 9.6% 46504 - Tennis Operations *$1,151,514 $1,065,000 $1,065,000 $1,065,000 $0 0% 46505 - Arts/Education Classes *$233,845 $320,000 $340,000 $350,000 $30,000 9.4% 46506 - Sports Leagues & Tournaments *$197,212 $210,000 $212,000 $217,500 $7,500 3.6% 46507 - Sports Classes *$581,934 $658,000 $658,000 $668,000 $10,000 1.5% 46508 - Swimming Classes *$722,226 $682,000 $700,000 $742,000 $60,000 8.8% 46509 - Concerts in the Park $10,000 $128,807 $104,460 $124,804 -$4,003 -3.1% 46510 - Older Adult Activities *$73,083 $75,000 $80,000 $120,000 $45,000 60% 46601 - Returned Check Fees $150 $100 $100 $100 $0 0% 46602 - Reproduction Fees $5,876 $5,000 $4,000 $16,131 $11,131 222.6% Total Service Charges:$9,961,869 $9,768,401 $10,371,904 $10,450,979 $682,578 7% Miscellaneous Revenues 47101 - W Comp Salary Continuation $446,138 $800,000 $600,000 $800,000 $0 0% 47104 - Damage Claims $0 $0 $1,078 $0 $0 0% 47201 - Cash Over/Short -$4,790 $0 $0 $0 $0 0% 47202 - Resubmittal of Returned Checks $7,693 $0 $0 $0 $0 0% 47203 - Bad Debt Recovery $15,974 $30,000 $20,000 $5,000 -$25,000 -83.3% 47204 - Bad Debt Writeoff -$2,537 -$3,000 -$3,936 -$3,000 $0 0% 47301 - Miscellaneous Revenues $12,259 $25,000 $250,000 $25,000 $0 0% 47302 - P-Card Incentive $42,132 $50,000 $43,395 $45,000 -$5,000 -10% 47303 - City Store Sales $7,177 $27,500 $18,000 $27,500 $0 0% 47306 - Sale of Property $3,279 $2,500 $1,175 $2,500 $0 0% 47307 - Contrs From Private Parties $45,646 $0 $5,000 $0 $0 0% 47408 - Bond Proceeds $0 $0 $0 $13,221,000 $13,221,000 N/A Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 70 Total Miscellaneous Revenues:$572,971 $932,000 $934,712 $14,123,000 $13,191,000 1,415.3% Interfund Charges & Transfers 49151 - Operating Service Transfers $3,731,200 $4,066,118 $4,066,118 $5,533,136 $1,467,018 36.1% Total Interfund Charges & Transfers:$3,731,200 $4,066,118 $4,066,118 $5,533,136 $1,467,018 36.1% Total Revenue Source:$99,155,850 $98,993,155 $101,428,659 $125,419,628 $26,426,473 26.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 71 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 72 EXPENDITURES BY FUND General Fund (54.4%)General Fund (54.4%)General Fund (54.4%) Enterprise Funds (19.7%)Enterprise Funds (19.7%)Enterprise Funds (19.7%) Internal Service Funds (13.2%)Internal Service Funds (13.2%)Internal Service Funds (13.2%) Special Revenue Funds (5.9%)Special Revenue Funds (5.9%)Special Revenue Funds (5.9%) Capital Improvement Fund (4.9%)Capital Improvement Fund (4.9%)Capital Improvement Fund (4.9%) Trust and Agency Funds (1.8%)Trust and Agency Funds (1.8%)Trust and Agency Funds (1.8%) General Fund $94,031,737 $98,484,891 $101,780,409 $105,580,229 $7,095,338 7.2% Special Revenue Funds Street Lighting & Landscape Fund $687,404 $704,331 $660,853 $675,465 -$28,866 -4.1% Gas Tax Fund $1,220,178 $2,075,138 $3,721,896 $2,262,690 $187,552 9% Asset Forfeiture Fund $54,601 $78,000 $178,750 $168,000 $90,000 115.4% Police Safety Grants Fund $103,313 $215,000 $195,000 $220,000 $5,000 2.3% Grants Fund $0 $5,320,000 $424,849 $0 -$5,320,000 -100% Prop. A Fund $704,295 $769,417 $772,030 $1,431,253 $661,836 86% Prop. C Fund $2,937,205 $1,060,138 $253,372 $685,664 -$374,474 -35.3% AB 2766 Air Quality Fund $2,917 $673 $82,214 $673 $0 0% Measure R Fund $1,085,154 $2,470,138 $924,535 $379,753 -$2,090,385 -84.6% Measure M Fund $1,870,116 $6,218,138 $1,353,371 $1,534,832 -$4,683,306 -75.3% Measure W Fund $430,077 $100,000 $2,368,071 $4,107,744 $4,007,744 4,007.7% Total Special Revenue Funds:$9,095,259 $19,010,973 $10,934,941 $11,466,074 -$7,544,899 -39.7% Capital Improvement Fund $5,148,779 $5,554,068 $7,118,666 $8,537,665 $2,983,597 53.7% Bond Construction Fund $1,906,694 $0 $0 $0 $0 0% UAD Construction Fund $699,195 $0 $301,086 $0 $0 0% Enterprise Funds Water Fund $17,684,516 $19,150,131 $18,370,490 $19,586,471 $436,340 2.3% Storm Drain Fund $1,211,966 $2,613,335 $4,560,093 $2,657,941 $44,606 1.7% Sewer Fund $3,390,200 $8,305,857 $4,048,028 $5,998,920 -$2,306,937 -27.8% Parking Fund $3,070,335 $4,290,885 $4,538,779 $8,185,111 $3,894,226 90.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 73 FY 2026 Citywide Expenditures by Fund County Parking Lots Fund $747,131 $890,901 $872,830 $1,188,011 $297,110 33.3% State Pier & Parking Lot Fund $1,973,088 $935,275 $1,271,204 $702,081 -$233,194 -24.9% Total Enterprise Funds:$28,077,236 $36,186,384 $33,661,424 $38,318,535 $2,132,151 5.9% Internal Service Funds Insurance Reserve Fund $9,528,177 $9,370,892 $10,676,232 $11,897,119 $2,526,227 27% Information Technology Fund $4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Fleet Management Fund $4,359,013 $4,930,447 $4,879,037 $4,306,751 -$623,696 -12.6% Building Maintenance & Ops Fund $2,767,639 $2,732,659 $2,732,659 $2,956,895 $224,236 8.2% Total Internal Service Funds:$20,823,564 $22,462,567 $23,500,020 $25,709,877 $3,247,310 14.5% Trust and Agency Funds Spec. Assess. Redemption Fund $676,204 $716,425 $706,425 $509,025 -$207,400 -28.9% Spec. Assess. UAD 12 & 14 Fund $586,117 $608,057 $603,057 $604,907 -$3,150 -0.5% Spec. Assess. UAD 19-4 Fund $321,355 $337,793 $332,793 $338,143 $350 0.1% Pension Trust Fund $203,161 $207,666 $220,668 $213,115 $5,449 2.6% Section 115 Trust Fund $0 $1,021,059 $991,020 $1,856,902 $835,843 81.9% Total Trust and Agency Funds:$1,786,837 $2,891,000 $2,853,963 $3,522,092 $631,092 21.8% Total:$161,569,302 $184,589,883 $180,150,509 $193,134,472 $8,544,589 4.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 74 EXPENDITURES BY FUNCTION Budgeted Citywide Expenditures by Function Public Works (40%)Public Works (40%)Public Works (40%) Police (21.7%)Police (21.7%)Police (21.7%) Fire (10.2%)Fire (10.2%)Fire (10.2%) Human Resources (7.4%)Human Resources (7.4%)Human Resources (7.4%) Parks and Recreation (7%)Parks and Recreation (7%)Parks and Recreation (7%) Community Development (4.6%)Community Development (4.6%)Community Development (4.6%) Information Technology (3.4%)Information Technology (3.4%)Information Technology (3.4%) Finance (2.9%)Finance (2.9%)Finance (2.9%) Management Services (2.9%)Management Services (2.9%)Management Services (2.9%) Expenditures Management Services $4,819,742 $5,215,782 $5,124,181 $5,527,285 $311,503 6% Finance $4,808,667 $4,836,849 $5,101,213 $5,606,949 $770,100 15.9% Human Resources $11,267,527 $11,414,376 $12,934,384 $14,356,355 $2,941,979 25.8% Parks and Recreation $13,114,205 $11,387,192 $11,432,180 $13,640,569 $2,253,377 19.8% Police $36,148,212 $39,429,192 $39,827,720 $42,102,936 $2,673,744 6.8% Fire $20,428,046 $18,764,189 $20,829,967 $19,819,531 $1,055,342 5.6% Community Development $7,621,417 $8,295,122 $8,567,026 $8,947,728 $652,606 7.9% Public Works $59,192,752 $79,818,612 $71,121,746 $76,584,007 -$3,234,605 -4.1% Information Technology $4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Total Expenditures:$161,569,302 $184,589,883 $180,150,509 $193,134,472 $8,544,589 4.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 75 EXPENDITURE DETAIL Budgeted Citywide Expenditures by Expense Type Salaries & Benefits (37.8%)Salaries & Benefits (37.8%)Salaries & Benefits (37.8%) Materials & Services (28.3%)Materials & Services (28.3%)Materials & Services (28.3%) Capital Projects & Equipment (16.4%)Capital Projects & Equipment (16.4%)Capital Projects & Equipment (16.4%) Internal Services Charge (11.8%)Internal Services Charge (11.8%)Internal Services Charge (11.8%) Debt Service (5.7%)Debt Service (5.7%)Debt Service (5.7%) Transfers (0.007%)Transfers (0.007%)Transfers (0.007%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $21,459,780 $23,000,369 $23,119,261 $25,050,800 $2,050,431 8.9% 51102-Sworn Employee Salaries $15,790,583 $16,204,441 $16,664,936 $17,488,763 $1,284,322 7.9% 51103-Part Time Employee Salaries $3,244,241 $3,476,270 $3,625,675 $3,660,032 $183,762 5.3% 51104-Overtime Regular Employees $1,257,042 $704,314 $1,132,043 $921,062 $216,748 30.8% 51105-Overtime Sworn Employees $4,204,295 $4,129,739 $4,941,610 $4,313,393 $183,654 4.4% 51106-Overtime Mutual Aid $31,881 $150,024 $600,000 $150,024 $0 0% 51107-Overtime Special Events $437,674 $564,716 $512,216 $547,602 -$17,114 -3% 51108-Overtime Cooperative Resources $0 $20,068 $20,068 $0 -$20,068 -100% 51109-OT Training & Special Detail $199,893 $110,028 $110,028 $113,331 $3,303 3% 51110-Supplemental Pension Plan $13,862 $14,176 $14,176 $13,750 -$426 -3% 51111-Single Highest Year Plan $21,021 $21,490 $21,490 $17,365 -$4,125 -19.2% 51113-Commuter Pay $7,620 $10,000 $6,000 $10,000 $0 0% 51114-Fire Retiree's Health Ins $3,508 $15,000 $15,000 $10,000 -$5,000 -33.3% 51115-Police Retiree's Health Plan $91,769 $97,000 $97,000 $97,000 $0 0% 51116-Misc Retirees Health Plan $73,002 $60,000 $73,002 $75,000 $15,000 25% 51201-Group Medical Insurance $5,919,405 $6,192,083 $6,437,285 $6,929,177 $737,094 11.9% 51202-Medicare $650,585 $616,934 $690,400 $666,319 $49,385 8% 51203-Medical Retirement Contrs $0 $0 $0 $49,855 $49,855 N/A 51204-401A Plan City $473,585 $492,098 $537,190 $556,017 $63,919 13% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 76 51205-Contributions to City Pension $33,680 $35,389 $35,389 $31,115 -$4,274 -12.1% 51211-PERS Regular Contributions $2,214,398 $2,313,656 $2,343,380 $2,492,204 $178,548 7.7% 51212-PERS Sworn Contributions $3,410,037 $3,443,060 $3,632,062 $3,703,433 $260,373 7.6% 51213-PERS Regular Net Pension Liab $0 $402,200 $389,188 $731,441 $329,241 81.9% 51214-PERS Sworn Net Pension Liab $0 $703,765 $680,991 $1,279,870 $576,105 81.9% 51219-PERS Suppl Retire Pymt (415)$11,943 $13,094 $21,193 $13,094 $0 0% 51221-Accrued Leave -$14,584 $0 $0 $0 $0 0% 51231-Unemployment $60,000 $60,000 $60,000 $60,000 $0 0% 51232-Workers Compensation $4,754,880 $4,483,020 $4,483,020 $4,348,860 -$134,160 -3% Total Salaries & Benefits:$64,350,098 $67,332,934 $70,262,603 $73,329,507 $5,996,573 8.9% Materials & Services 52101-Contract Services $21,540,807 $23,078,920 $23,124,247 $22,347,401 -$731,519 -3.2% 52102-Audit Services $66,786 $75,000 $75,000 $75,000 $0 0% 52103-Software Purchases and Subscriptions $1,669,642 $2,516,779 $2,273,027 $2,880,165 $363,386 14.4% 52104-Elections $2,947 $177,100 $177,100 $1,300 -$175,800 -99.3% 52105-SBRPCA Communications $2,023,436 $2,158,080 $2,158,020 $2,175,711 $17,631 0.8% 52106-Physical/Psychological Exams $87,059 $123,600 $127,500 $127,600 $4,000 3.2% 52107-Legal Services $1,210,852 $1,623,920 $1,440,000 $1,784,420 $160,500 9.9% 52108-Background Investigations $41,469 $33,072 $22,715 $34,272 $1,200 3.6% 52109-Automotive Repair Services $145,343 $110,000 $110,000 $115,000 $5,000 4.5% 52201-Departmental Supplies $3,117,981 $3,534,600 $3,681,576 $3,260,524 -$274,076 -7.8% 52202-Office Supplies $53,202 $71,600 $58,102 $67,600 -$4,000 -5.6% 52203-Printing $153,049 $121,660 $129,038 $129,560 $7,900 6.5% 52204-Postage $118,141 $76,571 $78,478 $48,239 -$28,332 -37% 52205-Uniforms/Safety Equipment $379,561 $557,785 $596,580 $466,890 -$90,895 -16.3% 52206-Advertising $83,518 $141,750 $179,488 $163,300 $21,550 15.2% 52207-Tools & Minor Equipment $95,961 $55,800 $37,800 $54,950 -$850 -1.5% 52208-Automotive Parts $22,214 $30,000 $30,000 $30,000 $0 0% 52301-Training, Conf & Meetings $621,637 $1,027,291 $923,134 $1,028,838 $1,547 0.2% 52302-STC Training $6,991 $6,550 $6,500 $6,800 $250 3.8% 52303-POST Training $103,773 $96,800 $120,000 $101,800 $5,000 5.2% 52304-Employee Awards & Events $31,564 $53,100 $54,716 $54,800 $1,700 3.2% 52305-Recruitment Costs $44,257 $72,450 $74,450 $77,450 $5,000 6.9% 52306-Tuition Reimbursement $18,085 $30,000 $45,000 $45,000 $15,000 50% 52307-Memberships & Dues $123,774 $161,843 $161,577 $173,234 $11,391 7% 52308-Reference Books & Periodicals $18,027 $26,830 $19,625 $25,190 -$1,640 -6.1% 52401-Warehouse Inventory Purchases $128,151 $120,000 $124,500 $135,000 $15,000 12.5% 52402-Automotive Fuel $541,265 $715,674 $703,674 $703,674 -$12,000 -1.7% 52403-City Store Purchases $9,696 $30,000 $30,000 $24,600 -$5,400 -18% 52404-Bank Service Charge $731,463 $640,000 $702,500 $640,000 $0 0% 52406-Assessments & Taxes $63,087 $508,240 $498,747 $856,872 $348,632 68.6% 52501-Bus Pass Subsidies $1,935 $4,000 $2,500 $4,000 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 77 52502-Recreation Bus Trips $47,997 $59,225 $59,225 $59,225 $0 0% 52601-Insurance Premiums $1,611,966 $2,224,678 $2,067,545 $2,861,878 $637,200 28.6% 52602-Claims Paid $6,264,868 $5,000,000 $6,501,717 $6,500,000 $1,500,000 30% 52603-Claims Administration $258,156 $267,816 $281,832 $277,680 $9,864 3.7% 52604-Miscellaneous Bonds/Insurance $9,783 $11,300 $10,777 $15,000 $3,700 32.7% 52605-Unemployment Claims $16,074 $25,000 $20,000 $25,000 $0 0% 52606-Property Insurance $565,372 $820,000 $734,860 $1,149,000 $329,000 40.1% 52702-Public Service Events $20,300 $26,100 $25,100 $16,100 -$10,000 -38.3% 52703-City Funds Match $9,926 $12,000 $12,000 $15,000 $3,000 25% 52705-Service Agency Contributions $87,315 $45,526 $45,526 $46,892 $1,366 3% 52706-DMBBPA Allocation $235,770 $120,000 $120,000 $120,000 $0 0% 52801-Computers, Supplies & Software $1,335,949 $1,834,631 $1,791,566 $2,056,591 $221,960 12.1% 52802-Computer Maintenance & Repairs $18,019 $24,665 $23,650 $26,453 $1,788 7.2% 53101-Telephone $178,964 $237,581 $180,021 $182,726 -$54,855 -23.1% 53102-Electricity $1,675,663 $1,341,165 $1,838,800 $1,938,264 $597,099 44.5% 53103-Natural Gas $201,867 $250,182 $195,526 $198,459 -$51,723 -20.7% 53104-Water $562,291 $626,046 $625,093 $631,221 $5,175 0.8% 53105 Postage Allocation $0 $0 $0 $54,542 $54,542 N/A 52803-Leased Property & Equipment $0 $0 $0 $1,080,372 $1,080,372 N/A Total Materials & Services:$46,355,953 $50,904,930 $52,298,832 $54,893,593 $3,988,663 7.8% Internal Services Charge 54101-Administrative Service Charge $2,856,971 $2,855,422 $2,855,422 $4,172,286 $1,316,864 46.1% 54102-Warehouse Purchases $146,651 $159,179 $144,509 $162,978 $3,799 2.4% 54103-Garage Purchases $19,068 $51,000 $15,000 $25,000 -$26,000 -51% 54104-Information Systems Allocation $4,404,768 $4,660,060 $4,660,060 $5,817,158 $1,157,098 24.8% 54105-Insurance Allocation $3,692,156 $4,080,960 $4,080,960 $5,107,440 $1,026,480 25.2% 54106-Fleet Rental Allocation $1,325,508 $1,489,170 $1,522,788 $1,697,910 $208,740 14% 54107-Fleet Maintenance Allocation $1,438,600 $1,820,189 $1,820,189 $1,800,995 -$19,194 -1.1% 54108-Building & Ops Allocation $2,617,781 $2,560,439 $2,560,439 $2,826,842 $266,403 10.4% 54109-Engineering Service Charges $875,776 $906,108 $906,108 $1,383,490 $477,382 52.7% Total Internal Services Charge:$17,377,278 $18,582,527 $18,565,475 $22,994,099 $4,411,572 23.7% Transfers 59201-Transfers Out $1,025,014 $13,134 $13,134 $13,134 $0 0% Total Transfers:$1,025,014 $13,134 $13,134 $13,134 $0 0% Capital Projects & Equipment 61201-Furniture & Fixtures $32,007 $16,400 $29,500 $21,900 $5,500 33.5% 61203-Computer Equipment & Software $292,060 $402,126 $347,126 $318,107 -$84,019 -20.9% 61204-ERP Implementation $5,390 $20,119 $20,100 $0 -$20,119 -100% 61301-Machinery $0 $170,000 $36,624 $0 -$170,000 -100% 61401-Vehicles $2,868,289 $3,880,060 $4,023,386 $3,107,793 -$772,267 -19.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 78 62201-Building & Facility Improv $7,583,791 $4,435,000 $5,983,285 $12,315,000 $7,880,000 177.7% 62202-Landscape & Site Improvements $672,286 $950,000 $1,262,193 $843,000 -$107,000 -11.3% 62211-Street & Sidewalks Improv $7,333,737 $12,578,000 $6,945,423 $5,750,000 -$6,828,000 -54.3% 62221-Utility Improvements $1,980,073 $9,230,000 $6,387,330 $7,183,337 -$2,046,663 -22.2% 62231-Other Infrastructure Improv $1,460,113 $5,750,000 $3,654,959 $1,384,000 -$4,366,000 -75.9% Total Capital Projects & Equipment:$22,227,746 $37,431,705 $28,689,926 $30,923,137 -$6,508,568 -17.4% Debt Service 71101-Bond Principal $2,970,000 $3,080,000 $3,060,001 $2,970,000 -$110,000 -3.6% 71102-Bond Interest $1,166,220 $1,104,507 $1,100,403 $1,621,586 $517,079 46.8% 71103-Bond Administration Fee $14,230 $14,730 $16,230 $18,030 $3,300 22.4% 72101-Land Leases $562,413 $605,000 $605,000 $853,437 $248,437 41.1% 71107-POB Miscellaneous Principal $1,091,879 $1,099,224 $1,100,009 $1,109,658 $10,434 0.9% 71108-POB Miscellaneous Interest $645,939 $637,046 $643,300 $625,303 -$11,743 -1.8% 71109-POB Safety Principal $2,375,000 $2,395,000 $2,395,000 $2,420,000 $25,000 1% 71110-POB Safety Interest $1,407,532 $1,389,146 $1,400,596 $1,362,988 -$26,158 -1.9% Total Debt Service:$10,233,213 $10,324,653 $10,320,539 $10,981,002 $656,349 6.4% Total Expense Objects:$161,569,302 $184,589,883 $180,150,509 $193,134,472 $8,544,589 4.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 79 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 80 EXPENDITURES BY FUNCTION FY 2026 General Fund Expenditures by Function Police (38.2%)Police (38.2%)Police (38.2%) Fire (17.6%)Fire (17.6%)Fire (17.6%) Public Works (12.1%)Public Works (12.1%)Public Works (12.1%) Parks and Recreation (11.5%)Parks and Recreation (11.5%)Parks and Recreation (11.5%) Community Development (8.3%)Community Development (8.3%)Community Development (8.3%) Management Services (5.2%)Management Services (5.2%)Management Services (5.2%) Finance (4.7%)Finance (4.7%)Finance (4.7%) Human Resources (2.3%)Human Resources (2.3%)Human Resources (2.3%) Expenditures Management Services $4,819,742 $5,192,028 $5,100,817 $5,484,086 $292,058 5.6% Finance $4,334,073 $4,333,794 $4,577,839 $5,014,140 $680,346 15.7% Human Resources $1,739,350 $2,032,287 $2,246,398 $2,438,873 $406,586 20% Parks and Recreation $11,847,810 $10,575,180 $10,697,242 $12,157,179 $1,581,999 15% Police $35,609,347 $38,223,846 $38,559,945 $40,371,162 $2,147,316 5.6% Fire $17,455,503 $17,732,501 $19,782,258 $18,591,849 $859,348 4.8% Community Development $7,621,417 $8,228,911 $8,416,433 $8,801,990 $573,079 7% Public Works $10,604,496 $12,166,344 $12,399,477 $12,720,950 $554,606 4.6% Total Expenditures:$94,031,737 $98,484,891 $101,780,409 $105,580,229 $7,095,338 7.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 81 EXPENDITURE DETAIL FY 2026 General Fund Expenditures by Expense Type Salaries & Benefits (59.8%)Salaries & Benefits (59.8%)Salaries & Benefits (59.8%)Materials & Services (20.3%)Materials & Services (20.3%)Materials & Services (20.3%) Internal Services Charge (14.5%)Internal Services Charge (14.5%)Internal Services Charge (14.5%) Debt Service (5.3%)Debt Service (5.3%)Debt Service (5.3%) Capital Projects & Equipment (0.07%)Capital Projects & Equipment (0.07%)Capital Projects & Equipment (0.07%) Transfers (0.01%)Transfers (0.01%)Transfers (0.01%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $17,027,547 $18,185,218 $18,313,402 $19,801,087 $1,615,869 8.9% 51102-Sworn Employee Salaries $15,790,583 $16,204,441 $16,664,936 $17,488,763 $1,284,322 7.9% 51103-Part Time Employee Salaries $2,705,310 $3,004,887 $3,155,061 $3,197,576 $192,689 6.4% 51104-Overtime Regular Employees $568,468 $409,832 $533,653 $496,383 $86,551 21.1% 51105-Overtime Sworn Employees $4,155,356 $4,081,739 $4,803,610 $4,175,393 $93,654 2.3% 51106-Overtime Mutual Aid $31,881 $150,024 $600,000 $150,024 $0 0% 51107-Overtime Special Events $437,674 $564,716 $512,216 $547,602 -$17,114 -3% 51108-Overtime Cooperative Resources $0 $20,068 $20,068 $0 -$20,068 -100% 51109-OT Training & Special Detail $199,893 $110,028 $110,028 $113,331 $3,303 3% 51113-Commuter Pay $7,620 $10,000 $6,000 $10,000 $0 0% 51201-Group Medical Insurance $5,132,536 $5,312,173 $5,590,913 $5,933,219 $621,046 11.7% 51202-Medicare $569,119 $539,275 $597,327 $583,903 $44,628 8.3% 51203-Medical Retirement Contrs $0 $0 $0 $43,247 $43,247 N/A 51204-401A Plan City $397,291 $406,854 $447,062 $465,023 $58,169 14.3% 51205-Contributions to City Pension $33,680 $35,389 $35,389 $31,115 -$4,274 -12.1% 51211-PERS Regular Contributions $1,763,897 $1,823,753 $1,869,451 $1,969,824 $146,071 8% 51212-PERS Sworn Contributions $3,410,037 $3,443,060 $3,632,062 $3,703,433 $260,373 7.6% 51219-PERS Suppl Retire Pymt (415)$11,943 $13,094 $21,193 $13,094 $0 0% 51231-Unemployment $60,000 $60,000 $60,000 $60,000 $0 0% 51232-Workers Compensation $4,618,860 $4,312,200 $4,312,200 $4,280,820 -$31,380 -0.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 82 Total Salaries & Benefits:$56,921,696 $58,686,751 $61,284,571 $63,063,837 $4,377,086 7.5% Materials & Services 52101-Contract Services $9,435,081 $10,058,787 $10,668,391 $9,580,796 -$477,991 -4.8% 52102-Audit Services $62,361 $75,000 $75,000 $75,000 $0 0% 52103-Software Purchases and Subscriptions $697,266 $800,917 $633,061 $874,482 $73,565 9.2% 52104-Elections $2,947 $177,100 $177,100 $1,300 -$175,800 -99.3% 52105-SBRPCA Communications $2,023,436 $2,158,080 $2,158,020 $2,175,711 $17,631 0.8% 52106-Physical/Psychological Exams $87,059 $123,600 $127,500 $127,600 $4,000 3.2% 52107-Legal Services $1,210,779 $1,623,920 $1,440,000 $1,784,420 $160,500 9.9% 52108-Background Investigations $41,469 $33,072 $22,715 $34,272 $1,200 3.6% 52109-Automotive Repair Services $142,180 $110,000 $110,000 $115,000 $5,000 4.5% 52201-Departmental Supplies $1,657,988 $1,701,491 $1,737,774 $1,525,997 -$175,494 -10.3% 52202-Office Supplies $51,820 $70,600 $56,878 $66,100 -$4,500 -6.4% 52203-Printing $139,154 $109,160 $111,835 $112,560 $3,400 3.1% 52204-Postage $106,906 $75,452 $77,678 $47,239 -$28,213 -37.4% 52205-Uniforms/Safety Equipment $329,796 $478,778 $489,823 $387,973 -$90,805 -19% 52206-Advertising $77,555 $140,350 $168,088 $161,900 $21,550 15.4% 52207-Tools & Minor Equipment $8,098 $16,000 $16,000 $11,000 -$5,000 -31.2% 52301-Training, Conf & Meetings $524,460 $838,105 $719,595 $791,355 -$46,750 -5.6% 52302-STC Training $6,991 $6,550 $6,500 $6,800 $250 3.8% 52303-POST Training $103,773 $96,800 $120,000 $101,800 $5,000 5.2% 52304-Employee Awards & Events $31,314 $51,600 $53,716 $53,300 $1,700 3.3% 52305-Recruitment Costs $44,257 $72,450 $74,450 $77,450 $5,000 6.9% 52306-Tuition Reimbursement $18,085 $30,000 $45,000 $45,000 $15,000 50% 52307-Memberships & Dues $109,432 $139,697 $136,782 $146,927 $7,230 5.2% 52308-Reference Books & Periodicals $18,027 $22,330 $19,550 $25,190 $2,860 12.8% 52403-City Store Purchases $9,696 $30,000 $30,000 $24,600 -$5,400 -18% 52404-Bank Service Charge $241,549 $215,000 $240,000 $215,000 $0 0% 52406-Assessments & Taxes $3,657 $4,500 $4,500 $4,500 $0 0% 52602-Claims Paid $25,000 $0 $0 $0 $0 0% 52702-Public Service Events $20,300 $26,100 $25,100 $16,100 -$10,000 -38.3% 52703-City Funds Match $9,926 $12,000 $12,000 $15,000 $3,000 25% 52705-Service Agency Contributions $87,315 $45,526 $45,526 $46,892 $1,366 3% 52801-Computers, Supplies & Software $77,636 $231,751 $297,330 $49,270 -$182,481 -78.7% 53101-Telephone $55,055 $60,644 $56,861 $57,717 -$2,927 -4.8% 53102-Electricity $930,033 $671,671 $974,000 $1,065,692 $394,021 58.7% 53103-Natural Gas $58,575 $76,776 $70,311 $71,366 -$5,410 -7% 53104-Water $464,448 $499,774 $524,160 $506,555 $6,781 1.4% 53105 Postage Allocation $0 $0 $0 $53,381 $53,381 N/A 52803-Leased Property & Equipment $0 $0 $0 $1,040,982 $1,040,982 N/A Total Materials & Services:$18,913,423 $20,883,581 $21,525,244 $21,496,227 $612,646 2.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 83 Internal Services Charge 54102-Warehouse Purchases $52,272 $60,849 $43,079 $59,549 -$1,300 -2.1% 54104-Information Systems Allocation $3,942,636 $4,084,541 $4,084,541 $5,128,989 $1,044,448 25.6% 54105-Insurance Allocation $3,646,040 $3,476,880 $3,476,880 $4,852,620 $1,375,740 39.6% 54106-Fleet Rental Allocation $1,077,624 $1,154,840 $1,183,766 $1,352,060 $197,220 17.1% 54107-Fleet Maintenance Allocation $1,235,578 $1,527,693 $1,527,693 $1,453,307 -$74,386 -4.9% 54108-Building & Ops Allocation $2,269,139 $2,228,037 $2,228,037 $2,450,754 $222,717 10% Total Internal Services Charge:$12,223,288 $12,532,840 $12,543,996 $15,297,279 $2,764,439 22.1% Transfers 59201-Transfers Out $221,282 $13,134 $13,134 $13,134 $0 0% Total Transfers:$221,282 $13,134 $13,134 $13,134 $0 0% Capital Projects & Equipment 61201-Furniture & Fixtures $32,007 $16,400 $29,500 $21,900 $5,500 33.5% 61203-Computer Equipment & Software $77,329 $97,500 $77,500 $2,500 -$95,000 -97.4% 61301-Machinery $0 $20,000 $36,624 $0 -$20,000 -100% 61401-Vehicles $2,305 $609,580 $609,625 $50,000 -$559,580 -91.8% Total Capital Projects & Equipment:$111,641 $743,480 $753,249 $74,400 -$669,080 -90% Debt Service 71101-Bond Principal $345,000 $360,000 $360,000 $370,000 $10,000 2.8% 71102-Bond Interest $130,000 $115,900 $115,900 $101,300 -$14,600 -12.6% 71103-Bond Administration Fee $3,100 $1,600 $3,100 $3,100 $1,500 93.8% 71107-POB Miscellaneous Principal $866,364 $863,199 $874,315 $881,331 $18,132 2.1% 71108-POB Miscellaneous Interest $513,411 $500,260 $511,304 $496,633 -$3,627 -0.7% 71109-POB Safety Principal $2,375,000 $2,395,000 $2,395,000 $2,420,000 $25,000 1% 71110-POB Safety Interest $1,407,532 $1,389,146 $1,400,596 $1,362,988 -$26,158 -1.9% Total Debt Service:$5,640,406 $5,625,105 $5,660,215 $5,635,352 $10,247 0.2% Total Expense Objects:$94,031,737 $98,484,891 $101,780,409 $105,580,229 $7,095,338 7.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 84 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 86 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 88 MISSION Our mission is to provide excellent municipal services, preserve our small beach town character, and enhance the quality of life for our residents, businesses, and visitors. DEPARTMENT OVERVIEW Management Services consists of five divisions responsible for the general administration and operation of the City: Elected Officials, City Manager, City Clerk, Communications & Civic Engagement, and City Attorney. The Elected Officials division consists of the City Council and City Treasurer. The City Council serves as the legislative body, represents the community and residents, and provides policy direction for City operations. An elected City Treasurer oversees the investment of City funds. The City Manager serves as the Chief Administrative Officer of the City and manages the City through nine operating departments. Additionally, the City Manager supervises the Management Services Department which supports the City Council in its policy-making and legislative role. The City’s chief legal advisor is the City Attorney, whose office is responsible for developing ordinances and resolutions, providing legal advice to the City Council and staff, and defending the City in any legal actions. The City Clerk serves as the City’s Elections Officer and collaborates with all City officials to ensure that open and effective government standards are in place. The City Clerk is also responsible for the preparation and posting of meeting agenda packets, preparing meeting minutes, maintaining the City’s legislative history, ensuring best records management practices, responding to Public Records Act requests, and conducting the municipal election every other year. Communications & Civic Engagement leads the effort to promote communications and marketing among the City’s departments, media, and the public. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 89 RECENT ACCOMPLISHMENT HIGHLIGHTS ELECTED OFFICIALS Approved placing Measure MMB on the November 5, 2024, General Municipal Election ballot, proposing a half-cent sales tax that would generate an estimated $5.3 million in local funding for essential programs and services; and adopted a resolution in support of the Measure. The Legislative Ad Hoc Subcommittee reviewed bills in conformance with the Legislative Platform and provided direction to support or oppose legislation. Celebrated the completion of the upgraded National Fitness Court in Polliwog Park, the completion of the Joslyn Center Crosswalk Improvement Project, and the installation of the Live Oak Park Ceramics Studio Kiln. Recognized the community through proclamations and ceremonial presentations at City Council meetings. Approved several projects and initiatives including: A resolution in support of Proposition 36, which proposed to allow felony charges and increased sentences for certain drug and theft crimes. The demolition and replacement of Parking Lot 3 upon notification of critical safety concerns; and directed staff to identify and activate available parking alternatives to lessen the impacts of the lot closure. A Memorandum of Understanding with the Bay Club company regarding constructing and operating an aquatics facility in the City. The City’s participation in the South Bay Cities Council of Government’s Functional Zero Street Homelessness Commendation Program. The City’s new business licensing software that includes an online portal and payment processing. Improvements to and expansion of the Polliwog Dog Run. The City’s Local Hazard Mitigation Plan (LHMP) which will inform long-term strategies to enhance community resilience against natural hazards in the City. The City’s Climate Action and Adaptation Plan (CAAP), which provides a set of recommended programs and initiatives to reduce the City's energy consumption and carbon footprint in accordance with the State's greenhouse gas emissions reduction targets. The acquisition of the property at 400 Manhattan Beach Boulevard, providing a multitude of possible opportunities for the City in terms of community benefits, preservation of local character, revenue generation, and investment in long-term value. The final design phase for the Sand Dune Park Improvements Project. Several traffic calming measures as recommended by the Parking and Public Improvements Commission for areas of Valley Drive and Ardmore Avenue between 1st Street and 10th Place. An agreement for prosecutorial services on an as-needed basis. The final construction drawings and specifications for the 28th Street Stormwater Infiltration Project which is capable of significantly reducing bacterial, trash, and debris discharges into South Santa Monica Bay. CITY MANAGER Continued to maximize outreach and successful outcomes conducted by the City’s dedicated homeless outreach navigator. In 2024, the navigator assisted 137 unique clients. Of those individuals, the following assistance was provided: Document Processing (33 clients) Interim Housing (25 clients) Treatment Center Referrals (5 clients) Stable Housing Placements (2 clients) Released a request for proposals and secured a dedicated homeless outreach navigator for an additional 2 years (with an option to extend for one additional year). Prepared a Legislative Platform which sets forth the City’s legislative objectives for the 2025 calendar year. Prepared letters in opposition or support of State Legislation after consideration by the Legislative Ad Hoc Subcommittee. Established an ordinance and a permit program related to the parking of oversized vehicles in the City. Finalized the FY 2026 City Council Work Plan, showcasing the City Council’s priorities for the year. Executed an agreement to obtain as needed prosecutorial services. Developed and executed the FY 2025 Chamber of Commerce Work Plan agreement. Assisted in the research and placement of Measure MMB on the November 5, 2024, General Municipal Election ballot. Conducted the 2025 Homeless Count in collaboration with the Los Angeles Homeless Services Authority (LAHSA). In collaboration with the City Council and Finance, acquired the property at 400 Manhattan Beach Boulevard. Developed a City Council Governance Policy and Manual to establish communication and governance policies to help guide the City Councilmembers while serving the community (expected completion: June 30, 2025). In collaboration with several departments, developed a Public Safety Camera System Policy to provide safeguards and specify rules for the acceptable use of the system without compromising the right to privacy held by the public and City employees (expected completion: June 30, 2025). CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 90 CIVIC ENGAGEMENT Through targeted outreach campaigns, communicated important initiatives such as the Budget Priorities Survey, storm drain and ocean protection projects, other infrastructure revitalization projects, and important City events. Organized and promoted ribbon cuttings and multiple important community engagement events including the State of the City, fostering a sense of belonging and civic pride. Collaborated with Manhattan Beach Parks & Recreation Cultural Arts Division to expand ocean protection messaging through the art exhibition, Ripple Effect. Enhanced internal communications through the organization of All Hands Meetings for City employees to improve transparency, alignment of priorities, and foster collaboration. Launched a monthly internal newsletter to keep employees informed about key City initiatives, upcoming events, and organizational updates, supporting engagement and a shared sense of mission. Developed and implemented a communication strategy for the Lot 3 Project, ensuring clear and consistent messaging to the public and stakeholders. Engaged businesses and residents in discussions on parking alternatives to address concerns and explore viable solutions. Launched the Citywide Manhattan Beach Monthly Newsletter, summarizing key public events and community updates, improving outreach and civic engagement. Led the planning and coordination of the City's Juneteenth ceremony, fostering a meaningful and inclusive community event that honored the significance of the day through education, cultural performances, and civic engagement. CITY CLERK Completed the November 5, 2024, General Municipal Election for 3 City Council seats, 1 City Treasurer seat, and a City Council measure. Updated the Boards and Commissions Handbook to accommodate changing practices and regulations and updated corresponding Manhattan Beach Municipal Code Sections. Provided the Local Coastal Program (LCP) electronically via the City’s online municipal code (expected completion: June 30, 2025). Processed 3,039 Public Records Requests in 2024. Collaborated with the City’s Information Technology department for the City Council Chambers AV Upgrade Project. CITY ATTORNEY Provided regular reports regarding litigation, lawsuits and claims, including the status of existing and potential litigation, and significant litigation. Advised the City of evolving state regulations that limit local control of land use decisions. Provided legal advice on Federal and State law including: the Brown Act, Public Records Act, Political Reform Act, Public Contracting Law, Coastal Act, NPDES, the Clean Water Act, and CEQA. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 91 PERFORMANCE MEASURES RESIDENTS RATING QUALITY OF LIFE AS "EXCELLENT" OR GOOD IN MB PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 94%N/A 94%N/A PERCENTAGE OF RESIDENTS SATISFIED WITH CITY SERVICES PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 88%N/A 80%N/A PERCENTAGE OF NEW FOLLOWERS ON SOCIAL MEDIA PRIOR YEAR TARGET FY 2023 Actual FY 2024 Actual FY 2025 Estimate FY 2026 14%15%5%12%24%2.8%10%15%10%10%15%10% PERCENTAGE OF REGULAR CITY COUNCIL MEETING MINUTES PRESENTED FOR APPROVAL AT NEXT MEETING PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 91%100%95%95% The City strives to provide a good quality of life for its residents, business, and visitors through its services, policies, projects, and programs. The City’s character, which contributes to quality of life, is defined as an iconic California beach town with a balanced laid-back, classic, upscale, and family-friendly lifestyle. The City conducts a bi-annual survey to assess residents opinions of their quality of life in Manhattan Beach. The City conducts a statistically-valid biennial Community Opinion Survey to better understand how residents measure their overall satisfaction with the City and its efforts to provide municipal services. Social media provides an opportunity for the City to engage with residents, businesses, and visitors. Strong social engagement helps to build trust, transparency, and highlights the City’s brand character, which enhances civic pride and business development. Minutes record City Council actions on resolutions, local laws, and ordinances considered at Council Meetings. Best practice for any City Clerk’s Office is to present regular meeting minutes at the next regular meeting to ensure actions are memorialized immediately. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 92 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 93 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 94 DEPARTMENT EXPENDITURES BY PROGRAM City Manager (29.8%)City Manager (29.8%)City Manager (29.8%) City Attorney (27.4%)City Attorney (27.4%)City Attorney (27.4%) City Clerk (16.1%)City Clerk (16.1%)City Clerk (16.1%) Elected Officials (13.4%)Elected Officials (13.4%)Elected Officials (13.4%) Communications & Civic Engagement (13.3%)Communications & Civic Engagement (13.3%)Communications & Civic Engagement (13.3%) Expenditures Management Services Elected Officials City Council $599,680 $585,067 $660,321 $680,342 $95,275 16.3% City Treasurer $50,685 $58,881 $55,815 $64,018 $5,137 8.7% Total Elected Officials:$650,365 $643,948 $716,136 $744,360 $100,412 15.6% City Manager $1,427,419 $1,394,243 $1,365,942 $1,622,434 $228,191 16.4% Total City Manager:$1,427,419 $1,394,243 $1,365,942 $1,622,434 $228,191 16.4% Communications & Civic Engagement $511,333 $656,691 $713,393 $737,886 $81,195 12.4% Total Communications & Civic Engagement:$511,333 $656,691 $713,393 $737,886 $81,195 12.4% City Clerk $924,478 $999,445 $1,019,210 $896,146 -$103,299 -10.3% Total City Clerk:$924,478 $999,445 $1,019,210 $896,146 -$103,299 -10.3% City Attorney $1,306,146 $1,521,455 $1,309,500 $1,526,459 $5,004 0.3% Total City Attorney:$1,306,146 $1,521,455 $1,309,500 $1,526,459 $5,004 0.3% Total Management Services:$4,819,742 $5,215,782 $5,124,181 $5,527,285 $311,503 6% Total Expenditures:$4,819,742 $5,215,782 $5,124,181 $5,527,285 $311,503 6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 95 Budgeted Expenditures by Program SCHEDULE OF EXPENDITURE DETAIL Salaries & Benefits (43.7%)Salaries & Benefits (43.7%)Salaries & Benefits (43.7%) Materials & Services (40.2%)Materials & Services (40.2%)Materials & Services (40.2%) Internal Services Charge (14.2%)Internal Services Charge (14.2%)Internal Services Charge (14.2%) Debt Service (1.9%)Debt Service (1.9%)Debt Service (1.9%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,444,980 $1,455,865 $1,569,433 $1,681,027 $225,162 15.5% 51103-Part Time Employee Salaries $25,776 $26,160 $26,160 $31,180 $5,020 19.2% 51104-Overtime Regular Employees $3,521 $6,500 $8,000 $8,000 $1,500 23.1% 51201-Group Medical Insurance $291,599 $316,701 $345,514 $384,358 $67,657 21.4% 51202-Medicare $20,750 $21,489 $23,172 $23,437 $1,948 9.1% 51203-Medical Retirement Contrs $0 $0 $0 $10,274 $10,274 N/A 51204-401A Plan City $43,898 $46,919 $68,275 $66,774 $19,855 42.3% 51211-PERS Regular Contributions $132,936 $136,986 $145,128 $146,786 $9,800 7.2% 51213-PERS Regular Net Pension Liab $0 $23,754 $23,364 $43,199 $19,445 81.9% 51231-Unemployment $204 $200 $200 $200 $0 0% Total Salaries & Benefits:$1,963,665 $2,034,574 $2,209,246 $2,395,235 $360,661 17.7% Materials & Services 52101-Contract Services $512,514 $448,497 $399,400 $344,198 -$104,299 -23.3% 52103-Software Purchases and Subscriptions $164,751 $8,050 $10,047 $11,140 $3,090 38.4% 52104-Elections $2,947 $177,100 $177,100 $1,300 -$175,800 -99.3% 52107-Legal Services $1,109,271 $1,408,920 $1,230,000 $1,458,920 $50,000 3.5% 52108-Background Investigations $539 $0 $0 $0 $0 0% 52201-Departmental Supplies $66,939 $69,600 $77,400 $83,950 $14,350 20.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 96 52202-Office Supplies $4,500 $2,000 $1,500 $2,000 $0 0% 52203-Printing $1,081 $3,400 $12,650 $13,500 $10,100 297.1% 52204-Postage $483 $428 $428 $300 -$128 -29.9% 52206-Advertising $15,017 $20,700 $39,200 $39,000 $18,300 88.4% 52301-Training, Conf & Meetings $69,503 $194,935 $131,630 $167,085 -$27,850 -14.3% 52304-Employee Awards & Events $275 $0 $0 $0 $0 0% 52307-Memberships & Dues $61,304 $63,570 $65,340 $67,440 $3,870 6.1% 52308-Reference Books & Periodicals $588 $470 $480 $670 $200 42.6% 52403-City Store Purchases $9,696 $30,000 $30,000 $24,600 -$5,400 -18% 52406-Assessments & Taxes $3,657 $4,500 $4,500 $4,500 $0 0% 52602-Claims Paid $25,000 $0 $0 $0 $0 0% 52702-Public Service Events $20,300 $26,100 $25,100 $16,100 -$10,000 -38.3% 52705-Service Agency Contributions $50,000 $0 $0 $0 $0 0% 53101-Telephone $700 $966 $643 $654 -$312 -32.3% 53105 Postage Allocation $0 $0 $0 $448 $448 N/A Total Materials & Services:$2,119,065 $2,459,236 $2,205,418 $2,235,805 -$223,431 -9.1% Internal Services Charge 54102-Warehouse Purchases $2,078 $3,000 $2,000 $2,000 -$1,000 -33.3% 54104-Information Systems Allocation $395,352 $370,474 $370,474 $514,818 $144,344 39% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54108-Building & Ops Allocation $228,308 $224,172 $224,172 $246,581 $22,409 10% Total Internal Services Charge:$640,738 $616,546 $615,546 $789,859 $173,313 28.1% Capital Projects & Equipment 61203-Computer Equipment & Software $2,700 $0 $0 $0 $0 0% Total Capital Projects & Equipment:$2,700 $0 $0 $0 $0 0% Debt Service 71107-POB Miscellaneous Principal $58,755 $66,745 $59,295 $68,043 $1,298 1.9% 71108-POB Miscellaneous Interest $34,819 $38,681 $34,676 $38,343 -$338 -0.9% Total Debt Service:$93,574 $105,426 $93,971 $106,386 $960 0.9% Total Expense Objects:$4,819,742 $5,215,782 $5,124,181 $5,527,285 $311,503 6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $4,819,742 $5,192,028 $5,100,817 $5,484,086 $292,058 5.6% Section 115 Trust Fund $0 $23,754 $23,364 $43,199 $19,445 81.9% Total:$4,819,742 $5,215,782 $5,124,181 $5,527,285 $311,503 6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 97 ELECTED OFFICIALS PROGRAM OVERVIEW The City of Manhattan Beach is a general law City and operates under the Council-Manager form of government. The five-member City Council is elected at-large to serve four-year terms. The Mayor’s office is rotated among all Councilmembers which provides approximately nine and one-half months of service as Mayor during each Councilmember’s four-year term of office. As elected officials, the City Councilmembers represent the citizens of Manhattan Beach in the governing process and act on their behalf with regard to regional and local, as well as State and Federal issues. The City Council is the legislative authority and sets the policies under which the City operates. Responsibilities of the City Council include enacting legislation such as local laws and ordinances; approving City programs; adopting the City’s capital improvement plan and operating budget; and appropriating the funds necessary to provide services to the City’s residents, businesses and visitors. The City Council provides leadership through policy development regarding the current practices and future direction of the City. The City Council convenes regular meetings on the first and third Tuesday of each month and holds occasional special meetings. The City Council appoints the City Manager and City Attorney, members of the City’s six advisory boards and commissions, and a representative for the LA County West Vector Control District. The City Treasurer is elected at-large and serves a four-year term. Along with Finance staff, the Treasurer administrates all City funds and provides accountability to the citizens of Manhattan Beach. The Treasurer’s responsibilities include investment of idle funds; reporting such activities to the City Council; and serving as Chair of the Finance Subcommittee. The Treasurer oversees the City’s $100 to $120 million investment portfolio. The investment portfolio contains instruments such as Federal Agencies, high-grade corporate bonds and Treasury notes. The State’s Local Agency Investment Fund is also used to ensure proper cash flow and liquidity. While investment yields have dropped to some of the lowest levels in history, the City’s investment strategy continues to place emphasis on safety and liquidity. OBJECTIVES FY 2026 Continue to focus on initiatives that reflect the needs and priorities of the community, including: Assess the condition of the City's infrastructure and establish priorities for repair and replacement through the evaluation of the City's 5-Year Capital Improvement Plan that ranges from street repair, City facility improvements, and water infrastructure. Complete items on the approved Fiscal Year 2026 City Council Work Plan. Examine the City's long-term financial outlook by proactively forecasting expenditures and revenues and continue to explore revenue enhancements. Evaluate and enhance the City’s public safety efforts where needed. Protect the City's assets and invest funds safely. Maintain sufficient liquidity. Update the annual investment policy and provide monthly reporting. Continue to develop forward-thinking initiatives to help shape the future of the City and embrace necessary improvements and innovations. Determine the future plans for the Pay N Play at Marine Avenue Park, the redevelopment of Parking Lot 3, and the development of the newly acquired land at 400 Manhattan Beach Boulevard. Seek out opportunities for the City to participate in the 2026 FIFA World Cup and the 2028 Summer Olympics. MAJOR SERVICE DELIVERY CHANGES Enhancements and redesign of the City website to improve user experience are underway with the assistance from the City Council Ad- Hoc Subcommittee. The City’s legislative position process allows the City to more rapidly respond to developing legislation and communicate the City's interests and objectives. With the approval of the City’s new business licensing software, community members will experience a streamlined application and renewal processes, making it easier and more convenient for local business owners to manage their licenses. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 98 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed City Councilmembers 5.00 5.00 5.00 City Treasurer 1.00 1.00 1.00 6.00 6.00 6.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 99 Internal Services Charge (36.9%)Internal Services Charge (36.9%)Internal Services Charge (36.9%) Materials & Services (33.3%)Materials & Services (33.3%)Materials & Services (33.3%) Salaries & Benefits (29.8%)Salaries & Benefits (29.8%)Salaries & Benefits (29.8%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $74,190 $60,840 $75,240 $69,840 $9,000 14.8% 51201-Group Medical Insurance $117,075 $115,167 $138,546 $147,886 $32,719 28.4% 51202-Medicare $727 $882 $881 $1,013 $131 14.9% 51211-PERS Regular Contributions $2,985 $2,928 $2,879 $3,438 $510 17.4% Total Salaries & Benefits:$194,977 $179,817 $217,546 $222,177 $42,360 23.6% Materials & Services 52101-Contract Services $26,057 $18,600 $75,000 $22,550 $3,950 21.2% 52103-Software Purchases and Subscriptions $5,137 $5,040 $5,497 $5,700 $660 13.1% 52108-Background Investigations $539 $0 $0 $0 $0 0% 52201-Departmental Supplies $21,061 $39,700 $39,700 $51,750 $12,050 30.4% 52203-Printing $301 $1,400 $1,400 $1,400 $0 0% 52204-Postage $198 $190 $190 $100 -$90 -47.4% 52206-Advertising $5,190 $3,200 $6,700 $8,000 $4,800 150% 52301-Training, Conf & Meetings $39,873 $90,635 $65,030 $77,385 -$13,250 -14.6% 52307-Memberships & Dues $55,672 $57,415 $58,175 $59,765 $2,350 4.1% 52308-Reference Books & Periodicals $310 $220 $240 $220 $0 0% 52406-Assessments & Taxes $3,657 $4,500 $4,500 $4,500 $0 0% 52702-Public Service Events $20,300 $26,100 $25,100 $16,100 -$10,000 -38.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 100 EXPENDITURES BY TYPE 52705-Service Agency Contributions $50,000 $0 $0 $0 $0 0% 53101-Telephone $133 $188 $115 $117 -$71 -37.8% 53105 Postage Allocation $0 $0 $0 $198 $198 N/A Total Materials & Services:$228,428 $247,188 $281,647 $247,785 $597 0.2% Internal Services Charge 54104-Information Systems Allocation $131,784 $123,491 $123,491 $171,605 $48,114 39% 54108-Building & Ops Allocation $95,176 $93,452 $93,452 $102,793 $9,341 10% Total Internal Services Charge:$226,960 $216,943 $216,943 $274,398 $57,455 26.5% Total Expense Objects:$650,365 $643,948 $716,136 $744,360 $100,412 15.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $650,365 $643,948 $716,136 $744,360 $100,412 15.6% Total General Fund:$650,365 $643,948 $716,136 $744,360 $100,412 15.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 101 CITY MANAGER PROGRAM OVERVIEW The City Manager is appointed by the City Council to carry out its policies and to ensure that the community is served in a responsive manner. The City Manager's office is responsible for providing support and advice to the City Council, offering leadership and legislative policy support for all departments, fostering community partnerships and interagency collaboration, supporting efforts to increase civic engagement efforts and ensuring organizational development and resiliency. Major services include: PUBLIC POLICY SUPPORT Provide professional expertise and support to the City Council in the formulation, interpretation, and application of public policy and legislative advocacy. CITYWIDE SERVICE DELIVERY Manage and coordinate citywide service delivery efforts by providing strategic direction and oversight. ORGANIZATIONAL LEADERSHIP AND DEVELOPMENT Provide leadership to departments and City activities, assure accountability of departments and staff on core activities, and champion efforts to increase leadership and management training. OPEN GOVERNMENT AND TRANSPARENCY Ensure the City maintains their commitment and legal obligations to transparency and open government while providing the public with timely and wide-ranging access to its meetings, written records and information. OBJECTIVES FY 2026 Continue efforts to address homelessness locally and regionally by placing individuals in housing via the City’s dedicated housing navigator (case manager) and collaborative housing provided to the City by the SBCCOG. Continue to collaborate as an active partner in the SBCCOG’s Functional Zero Street Homelessness Program to monitor homelessness in the community. Complete executive level recruitments for Community Development Director, Finance Director, and Fire Chief. Transition ongoing management of the North Manhattan Beach Business Improvement District to a Non-Profit Association similar to the Downtown Business & Professional Association. Work with the Legislative Ad Hoc Subcommittee to determine any City positions (support or opposition) on proposed State Legislation. Work with City departments to engage with the community in discussions regarding the future use of Parking Lot 3 and 400 Manhattan Beach Boulevard. Develop a committee of internal and external partners to explore opportunities for the City to participate in the 2026 FIFA World Cup and the 2028 Summer Olympics. MAJOR SERVICE DELIVERY CHANGES An upgrade of the vacant Assistant to the City Manager to Deputy City Manager position was included for Fiscal Year 2026. This role will enhance the City’s leadership capacity by overseeing key functions and managing high-priority projects, including strategic communication and coordination with staff, external partners, and the community. Following the City Council’s approval of an agreement, the City’s dedicated homeless outreach navigator will continue to assist unhoused individuals in the community for the next 2-3 years. This contractor has been serving the City since 2021. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 102 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Adopted Assistant to the City Manager 1.00 1.00 - City Manager 1.00 1.00 1.00 Deputy City Manager --1.00 Executive Assistant to the City Manager 1.00 1.00 1.00 Policy & Management Analyst 0.50 1.00 - Senior Management Analyst --1.00 3.50 4.00 4.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 103 Salaries & Benefits (64.1%)Salaries & Benefits (64.1%)Salaries & Benefits (64.1%) Materials & Services (15.8%)Materials & Services (15.8%)Materials & Services (15.8%) Internal Services Charge (13.7%)Internal Services Charge (13.7%)Internal Services Charge (13.7%) Debt Service (6.4%)Debt Service (6.4%)Debt Service (6.4%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $607,702 $624,190 $669,138 $775,671 $151,481 24.3% 51201-Group Medical Insurance $72,229 $81,251 $77,745 $96,947 $15,696 19.3% 51202-Medicare $8,678 $9,051 $9,702 $9,856 $805 8.9% 51203-Medical Retirement Contrs $0 $0 $0 $5,693 $5,693 N/A 51204-401A Plan City $12,396 $14,260 $29,087 $32,349 $18,089 126.9% 51211-PERS Regular Contributions $58,673 $60,180 $64,580 $63,280 $3,100 5.2% 51213-PERS Regular Net Pension Liab $0 $23,754 $23,364 $43,199 $19,445 81.9% 51231-Unemployment $204 $200 $200 $200 $0 0% Total Salaries & Benefits:$759,883 $812,886 $873,816 $1,027,195 $214,309 26.4% Materials & Services 52101-Contract Services $337,428 $236,197 $175,000 $206,698 -$29,499 -12.5% 52201-Departmental Supplies $22,549 $18,700 $18,700 $18,500 -$200 -1.1% 52202-Office Supplies $4,500 $2,000 $1,500 $2,000 $0 0% 52203-Printing $78 $100 $250 $400 $300 300% 52204-Postage $57 $48 $48 $200 $152 316.7% 52301-Training, Conf & Meetings $14,081 $39,000 $23,500 $29,500 -$9,500 -24.4% 52304-Employee Awards & Events $275 $0 $0 $0 $0 0% 52307-Memberships & Dues $2,024 $2,480 $2,900 $3,380 $900 36.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 104 EXPENDITURES BY TYPE 52308-Reference Books & Periodicals $278 $250 $240 $450 $200 80% 52403-City Store Purchases $980 $0 $0 $0 $0 0% 52602-Claims Paid $25,000 $0 $0 $0 $0 0% 53101-Telephone $320 $439 $300 $305 -$134 -30.5% 53105 Postage Allocation $0 $0 $0 $51 $51 N/A Total Materials & Services:$407,571 $299,214 $222,438 $261,484 -$37,730 -12.6% Internal Services Charge 54102-Warehouse Purchases $2,078 $3,000 $2,000 $2,000 -$1,000 -33.3% 54104-Information Systems Allocation $92,256 $98,793 $98,793 $137,285 $38,492 39% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54108-Building & Ops Allocation $57,057 $56,024 $56,024 $61,624 $5,600 10% Total Internal Services Charge:$166,391 $176,717 $175,717 $227,369 $50,652 28.7% Debt Service 71107-POB Miscellaneous Principal $58,755 $66,745 $59,295 $68,043 $1,298 1.9% 71108-POB Miscellaneous Interest $34,819 $38,681 $34,676 $38,343 -$338 -0.9% Total Debt Service:$93,574 $105,426 $93,971 $106,386 $960 0.9% Total Expense Objects:$1,427,419 $1,394,243 $1,365,942 $1,622,434 $228,191 16.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,427,419 $1,370,489 $1,342,578 $1,579,235 $208,746 15.2% Section 115 Trust Fund $0 $23,754 $23,364 $43,199 $19,445 81.9% Total:$1,427,419 $1,394,243 $1,365,942 $1,622,434 $228,191 16.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 105 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 106 COMMUNICATIONS & CIVIC ENGAGEMENT PROGRAM OVERVIEW The City's Communications & Civic Engagement Division is a critical component of strengthening the City's relationship with the residents, businesses, and the community as a whole. Through strategic initiatives and innovative approaches, the Communications & Civic Engagement Division aims to enhance public participation, promote civic pride, and ensure that residents are well-informed about city programs, services, and policies. The Division proactively informs stakeholders of what the City is doing to meet their needs and to improve and expand employee, resident, and business engagement through multiple channels. The Division administers Citywide internal and external strategic outreach via digital and print media, manages media relations and outreach, covers special events, maintains the City's website, advances the City's brand identity, and produces City videos. The Division is inclusive of graphic design, television, print, web advertising, marketing, public and community relations, as well as citizen and employee participation and outreach. The Division is responsible for: managing the City's social media channels (Facebook, Twitter, Instagram, YouTube, LinkedIn, and Nextdoor), developing merchandise for purchase, writing press releases, and producing and editing video content. The Division also manages special projects involving internal and external surveys, and employee and resident engagement. Additionally, the Communications & Civic Engagement Division seeks to promote and market the City's activities, beach lifestyle and family-friendly environment. OBJECTIVES FY 2026 Redesign the City website, making it more user-friendly and making information more accessible to the community. In light of potential emergencies or crises, strengthen crisis communication protocols and readiness to ensure timely and accurate information dissemination to residents, promoting community resilience and safety. Develop a comprehensive Citywide crisis communications plan. Enhance community engagement on City projects through the utilization of a full suite of communication tools and assets. Collaborate with local business groups to strengthen and expand events and marketing opportunities for visitors and residents to engage with local businesses. MAJOR SERVICE DELIVERY CHANGES The full implementation and utilization of the City's email communication platform, using the latest available software and leveraging social media platforms, resulted in a 25% - 43% increase in new subscribers through the email delivery system and followers across combined social media accounts. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Communications & Civic Engagement Manager 1.00 1.00 1.00 Digital Communications & Graphics Coordinator 1.00 1.00 1.00 Marketing & Communications Coordinator 1.00 1.00 1.00 3.00 3.00 3.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 107 Salaries & Benefits (68.2%)Salaries & Benefits (68.2%)Salaries & Benefits (68.2%) Materials & Services (17.9%)Materials & Services (17.9%)Materials & Services (17.9%) Internal Services Charge (14%)Internal Services Charge (14%)Internal Services Charge (14%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $278,452 $333,151 $358,598 $375,899 $42,748 12.8% 51104-Overtime Regular Employees $3,521 $6,000 $7,500 $8,000 $2,000 33.3% 51201-Group Medical Insurance $33,161 $45,746 $46,592 $63,794 $18,048 39.5% 51202-Medicare $4,053 $4,831 $5,360 $5,451 $620 12.8% 51204-401A Plan City $11,649 $14,089 $17,117 $15,371 $1,282 9.1% 51211-PERS Regular Contributions $26,081 $31,824 $33,686 $34,372 $2,548 8% Total Salaries & Benefits:$356,918 $435,641 $468,853 $502,887 $67,246 15.4% Materials & Services 52101-Contract Services $36,136 $67,400 $67,400 $32,400 -$35,000 -51.9% 52103-Software Purchases and Subscriptions $2,619 $3,010 $4,200 $5,190 $2,180 72.4% 52201-Departmental Supplies $14,239 $2,000 $7,000 $5,500 $3,500 175% 52203-Printing $484 $1,500 $11,000 $11,300 $9,800 653.3% 52206-Advertising $2,852 $7,500 $17,500 $17,500 $10,000 133.3% 52301-Training, Conf & Meetings $9,103 $33,500 $31,300 $33,500 $0 0% 52307-Memberships & Dues $1,199 $2,045 $2,045 $2,045 $0 0% 52403-City Store Purchases $8,716 $30,000 $30,000 $24,600 -$5,400 -18% Total Materials & Services:$75,348 $146,955 $170,445 $132,035 -$14,920 -10.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 108 EXPENDITURES BY TYPE Internal Services Charge 54104-Information Systems Allocation $79,068 $74,095 $74,095 $102,964 $28,869 39% Total Internal Services Charge:$79,068 $74,095 $74,095 $102,964 $28,869 39% Total Expense Objects:$511,333 $656,691 $713,393 $737,886 $81,195 12.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $511,333 $656,691 $713,393 $737,886 $81,195 12.4% Total General Fund:$511,333 $656,691 $713,393 $737,886 $81,195 12.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 109 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 110 CITY CLERK PROGRAM OVERVIEW The City Clerk's Office is dedicated to collaborating with City officials and the public to ensure that open and effective government standards are in place to secure public trust, and provide a system of transparency, public participation and accountability. The City Clerk serves as the greatest resource of information for the public, City Council, City staff and other governmental agencies; manages legal requirements for public notices and the filing of referendums and initiatives; and keeps complete and accurate records of City Council proceedings. The City Clerk's Office works diligently with the City's Information Technology Department to provide broadcasting of City Council and Planning Commission meetings on Manhattan Beach Local Community Cable, Spectrum Channel 8 and Frontier Communications Channel 35, City Website Live Streaming Video, and YouTube to ensure access to public information and the local government process. As the custodian of the City's official records, the office maintains all official City archives and legislative history, and ensures the preservation, protection and integrity of the public records. The City Clerk is also the City's Election Officer, and as such, conducts and certifies the City's municipal elections for six elected offices (5 City Council and 1 City Treasurer). OBJECTIVES FY 2026 Continue to achieve long-term cost savings by reducing documents stored off-site. Continue to assist departments with the retention and destruction of records per the City's records retention schedule. Continue to provide ongoing support to departments by conducting historical research on various topics as needed. Continue to archive historical documents reflecting the City's legislative history. Continue to ensure open access to municipal records and maintain compliance with all applicable open meeting laws (e.g. the Brown Act). Continue to assist City departments with public forums, workshops, and outreach projects to educate residents and the public about local government processes and major projects. Recodification of the Manhattan Beach Municipal Code. Integrate boards and commissions into the City's agenda management system to streamline meeting processes and provide consistent formatting and documentation. MAJOR SERVICE DELIVERY CHANGES Links to adopted ordinances have been provided within the City’s municipal code to enhance transparency and accessibility. All past and future ordinances will continue to be linked as they are adopted and incorporated into the municipal code. Enhanced the efficiency of the records request process by upgrading the City's software solution that provides the ability to receive and provide public records and accept legal and liability claims electronically. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Assistant City Clerk 1.00 1.00 1.00 City Clerk 1.00 1.00 1.00 Deputy City Clerk 1.00 1.00 1.00 3.00 3.00 3.00 1,040 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 111 Salaries & Benefits (71.7%)Salaries & Benefits (71.7%)Salaries & Benefits (71.7%) Internal Services Charge (16.1%)Internal Services Charge (16.1%)Internal Services Charge (16.1%) Materials & Services (12.2%)Materials & Services (12.2%)Materials & Services (12.2%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $438,709 $437,684 $466,457 $459,617 $21,933 5% 51103-Part Time Employee Salaries $25,776 $26,160 $26,160 $31,180 $5,020 19.2% 51104-Overtime Regular Employees $0 $500 $500 $0 -$500 -100% 51201-Group Medical Insurance $60,478 $74,537 $82,631 $75,731 $1,194 1.6% 51202-Medicare $6,640 $6,725 $7,229 $7,117 $392 5.8% 51203-Medical Retirement Contrs $0 $0 $0 $4,581 $4,581 N/A 51204-401A Plan City $18,022 $18,570 $22,071 $19,054 $484 2.6% 51211-PERS Regular Contributions $40,662 $42,054 $43,983 $45,696 $3,642 8.7% Total Salaries & Benefits:$590,286 $606,230 $649,031 $642,976 $36,746 6.1% Materials & Services 52101-Contract Services $28,985 $51,300 $40,000 $56,250 $4,950 9.6% 52103-Software Purchases and Subscriptions $156,995 $0 $350 $250 $250 N/A 52104-Elections $2,947 $177,100 $177,100 $1,300 -$175,800 -99.3% 52201-Departmental Supplies $9,090 $9,200 $12,000 $8,200 -$1,000 -10.9% 52203-Printing $217 $400 $0 $400 $0 0% 52204-Postage $173 $138 $138 $0 -$138 -100% 52206-Advertising $6,976 $10,000 $15,000 $13,500 $3,500 35% 52301-Training, Conf & Meetings $6,446 $31,800 $11,800 $26,700 -$5,100 -16% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 112 EXPENDITURES BY TYPE 52307-Memberships & Dues $2,408 $1,630 $2,220 $2,250 $620 38% 53101-Telephone $149 $204 $128 $130 -$74 -36.3% 53105 Postage Allocation $0 $0 $0 $144 $144 N/A Total Materials & Services:$214,387 $281,772 $258,736 $109,124 -$172,648 -61.3% Internal Services Charge 54104-Information Systems Allocation $79,068 $74,095 $74,095 $102,964 $28,869 39% 54108-Building & Ops Allocation $38,037 $37,348 $37,348 $41,082 $3,734 10% Total Internal Services Charge:$117,105 $111,443 $111,443 $144,046 $32,603 29.3% Capital Projects & Equipment 61203-Computer Equipment & Software $2,700 $0 $0 $0 $0 0% Total Capital Projects & Equipment:$2,700 $0 $0 $0 $0 0% Total Expense Objects:$924,478 $999,445 $1,019,210 $896,146 -$103,299 -10.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $924,478 $999,445 $1,019,210 $896,146 -$103,299 -10.3% Total General Fund:$924,478 $999,445 $1,019,210 $896,146 -$103,299 -10.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 113 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 114 CITY ATTORNEY PROGRAM OVERVIEW The City Attorney’s Office consists of a contracted City Attorney who provides legal services on a flat retainer basis and who is admitted to practice law by the California Bar Association and experienced in the practice of Municipal Law. City Prosecution services are provided by a contracted law firm on an as-needed hourly basis. Through contracted services, the City Attorney’s Office prosecutes violations of the City Municipal Code. As required by state law, state misdemeanor and felony violations are prosecuted by the Los Angeles County District Attorney’s Office. The City Attorney’s Office drafts ordinances, resolutions, and agreements as well as provides general legal services and advice, oral and written, to the City Councilmembers and City departments on a daily and routine basis. Attorneys specializing in areas of litigation, land use, real estate, finance, California Environmental Quality Act, California Coastal Act, public works, labor and other specialties are all available to the City Manager, City departments and the City Council at any time. The City Attorney also oversees outside counsel. The City Attorney serves as advisor by providing legal representation at City Council meetings, and on an as-needed basis to other boards, committees and commissions. The City Attorney also attends weekly City Manager Department Head meetings and other meetings as requested, and provides support to Risk Management in processing claims as well as other departments as needed for legal services. Additionally, the City Attorney assists the City Clerk’s office with the processing and management of Public Records Act requests. OBJECTIVES FY 2026 LITIGATION AND PROSECUTION Provide regular reporting on all litigation, lawsuits and claims including the status of existing and potential litigation, and significant litigation. LEGAL OPINIONS Continue to provide legal advice on Federal and State law including: the Brown Act, Public Records Act, Political Reform Act, Public Contracting Law, Coastal Act, NPDES, the Clean Water Act and CEQA. CONTRACT PROCESSING Continue to update and refine templates for public contract agreements, professional service agreements, requests for proposals, ordinances and resolutions to increase efficiency. Continue to draft ordinances to reflect recent developments in case law and statutory law. Assist in improving the City’s Municipal Code, policies and practices to make them more user-friendly and efficient. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Policy & Management Analyst 0.50 -- 0.50 -- CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 115 Materials & Services (97.3%)Materials & Services (97.3%)Materials & Services (97.3%) Internal Services Charge (2.7%)Internal Services Charge (2.7%)Internal Services Charge (2.7%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $45,926 $0 $0 $0 $0 0% 51201-Group Medical Insurance $8,656 $0 $0 $0 $0 0% 51202-Medicare $652 $0 $0 $0 $0 0% 51204-401A Plan City $1,831 $0 $0 $0 $0 0% 51211-PERS Regular Contributions $4,535 $0 $0 $0 $0 0% Total Salaries & Benefits:$61,601 $0 $0 $0 $0 0% Materials & Services 52101-Contract Services $83,908 $75,000 $42,000 $26,300 -$48,700 -64.9% 52107-Legal Services $1,109,271 $1,408,920 $1,230,000 $1,458,920 $50,000 3.5% 52204-Postage $54 $52 $52 $0 -$52 -100% 53101-Telephone $99 $135 $100 $102 -$33 -24.4% 53105 Postage Allocation $0 $0 $0 $55 $55 N/A Total Materials & Services:$1,193,331 $1,484,107 $1,272,152 $1,485,377 $1,270 0.1% Internal Services Charge 54104-Information Systems Allocation $13,176 $0 $0 $0 $0 0% 54108-Building & Ops Allocation $38,037 $37,348 $37,348 $41,082 $3,734 10% Total Internal Services Charge:$51,213 $37,348 $37,348 $41,082 $3,734 10% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 116 EXPENDITURES BY TYPE Total Expense Objects:$1,306,146 $1,521,455 $1,309,500 $1,526,459 $5,004 0.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,306,146 $1,521,455 $1,309,500 $1,526,459 $5,004 0.3% Total General Fund:$1,306,146 $1,521,455 $1,309,500 $1,526,459 $5,004 0.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 117 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 118 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 120 MISSION To ensure the integrity of the City's financial systems in accordance with City policies while providing responsive and superior customer service. DEPARTMENT OVERVIEW The Finance Department’s responsibilities include accounting, budgeting, payroll, investments, and procurement, as well as business licensing, accounts receivable, cashiering and utility billing. These services are provided through the following department functions: Administration and Budget Accounting Payoll Purchasing Revenue Services Business Licensing Water and Sewer Billing The City had its “AAA” issuer credit rating re-affirmed by Standard and Poor’s in 2021, an achievement maintained by few California cities. This rating is a testament to the City’s continued strong financial position, its tradition of prudent fiscal decisions and a resilient economic base. All departments contribute to this achievement through high levels of service and proactive financial management. The Finance Department is staffed by a dedicated, hard-working team of twenty-one (21) full-time professionals. RECENT ACCOMPLISHMENT HIGHLIGHTS Executed the necessary agreements and documentation with the California Department of Tax and Fee Administration (CDTFA) to facilitate the implementation of Measure MMB, a half cent sales tax measure that was approved on November 4, 2024. Received the Award for Budget Excellence issued by the California Society of Municipal Finance Officers (CSMFO) for the City's FY 2025 Budget document. Received the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for the City's FY 2025 Budget, including a special recognition for long-range operating financial plans, which is the highest form of recognition in governmental budgeting. Received the Certificate of Achievement for Excellence in Financial Reporting issued by the GFOA. Enhanced transparency by publishing the City’s first Popular Annual Financial Report (PAFR) and bringing the Open Finance portal online. Worked with City Manager's office on the acquisition of and financing plans for 400 Manhattan Beach Boulevard. Continued enhanced budget outreach efforts to obtain community input earlier in the budget process by conducting an online budget survey from February 10, 2025 through March 31, 2025. This effective community outreach resulted in 678 survey responses which reflects the highest response rate for a budget survey ever conducted by the City. Implemented a new business license system that allows businesses the ability to apply, renew and pay for their business license online through a user-friendly platform offered through HDL Companies. This new system implementation involved two (2) public Information Sessions and community outreach to the City’s 5,000+ businesses. Completed a Cost Allocation Plan and User Fee Study which greatly improves the City’s cost recovery levels and reduces general fund subsidies on user fees. This study is conducted every 4-5 years to identify the City’s true cost of services and develops appropriate user fees to recover those costs. Completed revenue enhancements related to parking meter rates, parking permit fees and parking citation penalties, which had not been updated in 5-15 years. Initiated a Development Impact Fee Study to identify future development impacts on city services and infrastructure. Continued efforts to further enhance the Short-Term Rental (STR) Program by coordinating with150+ STR operators to ensure compliance by obtaining an annual business license and submitting monthly TOT payments and remittance forms. Enhanced customer service by encouraging residents to sign up for the My Water Advisor customer portal that allows residents to track water consumption and sign up for leak alerts. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 121 PERFORMANCE MEASURES MAINTAIN AAA GENERAL OBLIGATION BOND RATING PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget AAA AAA AAA AAA ATTAIN AN UNMODIFIED AUDIT OPINION PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget Yes Yes Yes Yes ATTAIN GFOA AND CSMFO BUDGET AWARDS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget Yes Yes Yes Yes ATTAIN GFOA ANNUAL FINANCIAL REPORTING ACHIEVEMENT PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget Yes Yes Yes Yes AVERAGE ANNUAL INVESTMENT PORTFOLIO YIELD PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 2.16%2.89%3.35%3.00% The "AAA" issuer credit rating is a testament to the City’s continued strong financial position, its tradition of prudent fiscal decisions and a resilient economic base. This is an achievement maintained by few California Cities. The City’s independent auditor issues an unmodified opinion when financial statements are presented, in all material respect, in accordance with accounting standards being used and accordance with the applicable reporting framework. The Government Finance Officers Association (GFOA) and California Society of Municipal Finance Officers (CSMFO) review Budget documents and confer awards to Cities that meet their criteria GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program (COA) to recognize the requirements of generally accepted accounting principles to prepare annual comprehensive financial reports that evidence the spirit to transparency and full disclosure. The City strives to achieve this certificate on an annual basis. The City’s investments are managed in a prudent and diligent manner with an emphasis on safety, liquidity and yield, in that respective order. Reports on the City’s investment portfolio and cash position are provided to the City Council on a monthly basis. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 122 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 123 DEPARTMENT EXPENDITURES BY PROGRAM Finance Admin (35.8%)Finance Admin (35.8%)Finance Admin (35.8%) Revenue Services (25.5%)Revenue Services (25.5%)Revenue Services (25.5%) Accounting (23.8%)Accounting (23.8%)Accounting (23.8%) Purchasing (15%)Purchasing (15%)Purchasing (15%) Expenditures Finance Finance Admin $1,928,353 $1,812,762 $2,001,657 $2,005,069 $192,307 10.6% Total Finance Admin:$1,928,353 $1,812,762 $2,001,657 $2,005,069 $192,307 10.6% Accounting $1,040,176 $1,062,556 $1,101,113 $1,334,202 $271,646 25.6% Total Accounting:$1,040,176 $1,062,556 $1,101,113 $1,334,202 $271,646 25.6% Revenue Services Revenue Services $561,078 $657,042 $707,667 $706,681 $49,639 7.6% Business Licensing $128,862 $136,696 $110,996 $279,159 $142,463 104.2% Parking Citations $189,339 $202,857 $150,288 $227,692 $24,835 12.2% Utility Billing $191,866 $208,628 $202,551 $214,636 $6,008 2.9% Total Revenue Services:$1,071,144 $1,205,223 $1,171,502 $1,428,168 $222,945 18.5% Purchasing Purchasing $497,561 $494,623 $558,006 $521,110 $26,487 5.4% General Services $271,433 $261,685 $268,935 $318,400 $56,715 21.7% Total Purchasing:$768,994 $756,308 $826,941 $839,510 $83,202 11% Total Finance:$4,808,667 $4,836,849 $5,101,213 $5,606,949 $770,100 15.9% Total Expenditures:$4,808,667 $4,836,849 $5,101,213 $5,606,949 $770,100 15.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 124 SCHEDULE OF EXPENDITURE DETAIL Salaries & Benefits (60.4%)Salaries & Benefits (60.4%)Salaries & Benefits (60.4%) Materials & Services (22.7%)Materials & Services (22.7%)Materials & Services (22.7%) Internal Services Charge (13.8%)Internal Services Charge (13.8%)Internal Services Charge (13.8%) Debt Service (2.9%)Debt Service (2.9%)Debt Service (2.9%) Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,887,335 $1,980,066 $1,918,258 $2,303,482 $323,416 16.3% 51103-Part Time Employee Salaries $147,891 $71,004 $260,813 $70,090 -$914 -1.3% 51104-Overtime Regular Employees $1,337 $7,360 $4,131 $4,217 -$3,143 -42.7% 51110-Supplemental Pension Plan $13,862 $14,176 $14,176 $13,750 -$426 -3% 51111-Single Highest Year Plan $21,021 $21,490 $21,490 $17,365 -$4,125 -19.2% 51114-Fire Retiree's Health Ins $3,508 $15,000 $15,000 $10,000 -$5,000 -33.3% 51115-Police Retiree's Health Plan $91,769 $97,000 $97,000 $97,000 $0 0% 51116-Misc Retirees Health Plan $73,002 $60,000 $73,002 $75,000 $15,000 25% 51201-Group Medical Insurance $313,206 $333,292 $316,327 $374,635 $41,343 12.4% 51202-Medicare $29,135 $30,046 $29,772 $34,267 $4,221 14% 51203-Medical Retirement Contrs $0 $0 $0 $4,651 $4,651 N/A 51204-401A Plan City $55,328 $57,289 $59,461 $67,349 $10,060 17.6% 51205-Contributions to City Pension $650 $684 $684 $0 -$684 -100% 51211-PERS Regular Contributions $192,150 $194,422 $223,076 $222,246 $27,824 14.3% 51213-PERS Regular Net Pension Liab $0 $33,704 $33,771 $61,294 $27,590 81.9% 51231-Unemployment $204 $200 $200 $200 $0 0% 51232-Workers Compensation $0 $23,460 $23,460 $33,600 $10,140 43.2% Total Salaries & Benefits:$2,830,396 $2,939,193 $3,090,621 $3,389,146 $449,953 15.3% Materials & Services Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 125 52101-Contract Services $402,530 $373,930 $521,778 $521,870 $147,940 39.6% 52102-Audit Services $62,361 $75,000 $75,000 $75,000 $0 0% 52103-Software Purchases and Subscriptions $107,203 $120,870 $66,197 $140,532 $19,662 16.3% 52107-Legal Services $0 $0 $0 $25,000 $25,000 N/A 52201-Departmental Supplies $14,995 $18,100 $15,600 $16,400 -$1,700 -9.4% 52202-Office Supplies $2,017 $4,500 $3,000 $4,500 $0 0% 52203-Printing $68,048 $15,710 $9,685 $13,210 -$2,500 -15.9% 52204-Postage $55,885 $35,670 $30,615 $28,500 -$7,170 -20.1% 52205-Uniforms/Safety Equipment $2,285 $2,000 $1,500 $1,500 -$500 -25% 52206-Advertising $2,448 $3,200 $2,300 $3,200 $0 0% 52208-Automotive Parts $22,214 $30,000 $30,000 $30,000 $0 0% 52301-Training, Conf & Meetings $28,096 $53,170 $37,175 $46,900 -$6,270 -11.8% 52304-Employee Awards & Events $896 $1,500 $1,500 $1,500 $0 0% 52307-Memberships & Dues $3,264 $2,835 $3,010 $3,210 $375 13.2% 52308-Reference Books & Periodicals $1,294 $1,500 $1,800 $1,200 -$300 -20% 52401-Warehouse Inventory Purchases $128,151 $120,000 $124,500 $135,000 $15,000 12.5% 52404-Bank Service Charge $241,549 $215,000 $240,000 $215,000 $0 0% 53101-Telephone $925 $2,041 $830 $842 -$1,199 -58.7% 53105 Postage Allocation $0 $0 $0 $12,112 $12,112 N/A Total Materials & Services:$1,144,161 $1,075,026 $1,164,490 $1,275,476 $200,450 18.6% Internal Services Charge 54102-Warehouse Purchases $18,398 $10,050 $12,850 $11,550 $1,500 14.9% 54104-Information Systems Allocation $311,472 $323,408 $323,408 $383,934 $60,526 18.7% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54107-Fleet Maintenance Allocation $1,982 $2,698 $2,698 $2,638 -$60 -2.2% 54108-Building & Ops Allocation $323,483 $317,624 $317,624 $349,374 $31,750 10% Total Internal Services Charge:$670,335 $672,680 $675,480 $773,956 $101,276 15.1% Capital Projects & Equipment 61201-Furniture & Fixtures $438 $3,900 $6,600 $7,900 $4,000 102.6% Total Capital Projects & Equipment:$438 $3,900 $6,600 $7,900 $4,000 102.6% Debt Service 71103-Bond Administration Fee $1,500 $0 $1,500 $1,500 $1,500 N/A 71107-POB Miscellaneous Principal $101,618 $92,463 $102,550 $101,676 $9,213 10% 71108-POB Miscellaneous Interest $60,219 $53,587 $59,972 $57,295 $3,708 6.9% Total Debt Service:$163,337 $146,050 $164,022 $160,471 $14,421 9.9% Total Expense Objects:$4,808,667 $4,836,849 $5,101,213 $5,606,949 $770,100 15.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 126 SOURCE OF FUNDS General Fund $4,334,073 $4,333,794 $4,577,839 $5,014,140 $680,346 15.7% Building Maintenance & Ops Fund $271,433 $261,685 $268,935 $318,400 $56,715 21.7% Pension Trust Fund $203,161 $207,666 $220,668 $213,115 $5,449 2.6% Section 115 Trust Fund $0 $33,704 $33,771 $61,294 $27,590 81.9% Total:$4,808,667 $4,836,849 $5,101,213 $5,606,949 $770,100 15.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 127 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 128 FINANCE ADMINISTRATION PROGRAM OVERVIEW The Administration Division of Finance safeguards and accurately accounts for City assets, prepares the annual City Budget, financial reports, and completes special financial projects, such as bond issuance, while ensuring compliance with municipal finance regulations and maintaining the City’s financial policies. Administration staff also manages the investment of City funds in conjunction with the elected City Treasurer, debt issuance and management, and assists with the creation of the annual financial report in cooperation with the Accounting Division. Additionally, Administration oversees and supports the other divisions in the Finance Department. OBJECTIVES FY 2026 Support the City Council, Treasurer, and City Manager in the development of long-term sustainable financial plans, including capital financing. Maintain safety of the City's investment portfolio and ensure adequate cash flow. Maintain high standards of excellence through the continuance of the City's “AAA” bond rating, unmodified audit opinions, and various budgeting and financial reporting awards. Mitigate General Fund subsidies to other Funds by evaluating potential revenue enhancements and grant opportunities. Maintain Citywide ERP financial system; collaborate with all departments to improve workflow efficiencies and enhance financial data reporting. Leverage technology to enhance efficiency, productivity, and transparency in financial reporting. Complete bond issuance (anticipated August 2025) for the purchase of property at 400 Manhattan Beach Boulevard and conduct financial analyses on revenue-generating development plans. Complete Development Impact Fee Study (anticipated December 2025). AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 1.00 -- Budget & Financial Analyst 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 Finance Director 1.00 1.00 1.00 Financial Services Manager 1.00 1.00 1.00 5.00 4.00 4.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 129 Salaries & Benefits (55.1%)Salaries & Benefits (55.1%)Salaries & Benefits (55.1%) Internal Services Charge (23.8%)Internal Services Charge (23.8%)Internal Services Charge (23.8%) Materials & Services (13%)Materials & Services (13%)Materials & Services (13%) Debt Service (8%)Debt Service (8%)Debt Service (8%) Capital Projects & Equipment (0.06%)Capital Projects & Equipment (0.06%)Capital Projects & Equipment (0.06%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $662,009 $551,173 $465,235 $606,950 $55,777 10.1% 51103-Part Time Employee Salaries $0 $0 $172,147 $0 $0 0% 51104-Overtime Regular Employees $27 $0 $0 $0 $0 0% 51110-Supplemental Pension Plan $13,862 $14,176 $14,176 $13,750 -$426 -3% 51111-Single Highest Year Plan $21,021 $21,490 $21,490 $17,365 -$4,125 -19.2% 51114-Fire Retiree's Health Ins $3,508 $15,000 $15,000 $10,000 -$5,000 -33.3% 51115-Police Retiree's Health Plan $91,769 $97,000 $97,000 $97,000 $0 0% 51116-Misc Retirees Health Plan $73,002 $60,000 $73,002 $75,000 $15,000 25% 51201-Group Medical Insurance $104,296 $83,453 $74,543 $97,947 $14,494 17.4% 51202-Medicare $9,332 $7,992 $7,954 $8,801 $809 10.1% 51203-Medical Retirement Contrs $0 $0 $0 $4,651 $4,651 N/A 51204-401A Plan City $20,664 $19,925 $19,607 $21,823 $1,898 9.5% 51205-Contributions to City Pension $650 $684 $684 $0 -$684 -100% 51211-PERS Regular Contributions $61,541 $52,912 $45,084 $57,074 $4,162 7.9% 51213-PERS Regular Net Pension Liab $0 $33,704 $33,771 $61,294 $27,590 81.9% 51231-Unemployment $204 $200 $200 $200 $0 0% 51232-Workers Compensation $0 $23,460 $23,460 $33,600 $10,140 43.2% Total Salaries & Benefits:$1,061,883 $981,169 $1,063,353 $1,105,455 $124,286 12.7% Materials & Services Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 130 EXPENDITURES BY TYPE 52101-Contract Services $4,695 $5,060 $75,385 $6,160 $1,100 21.7% 52103-Software Purchases and Subscriptions $10,870 $10,870 $11,197 $11,532 $662 6.1% 52201-Departmental Supplies $6,201 $3,700 $3,200 $3,700 $0 0% 52202-Office Supplies $2,017 $4,500 $3,000 $4,500 $0 0% 52203-Printing $4,087 $5,800 $5,800 $5,800 $0 0% 52204-Postage $7 $207 $207 $200 -$7 -3.4% 52206-Advertising $350 $1,000 $1,000 $1,000 $0 0% 52301-Training, Conf & Meetings $1,035 $9,400 $4,800 $9,550 $150 1.6% 52304-Employee Awards & Events $896 $1,500 $1,500 $1,500 $0 0% 52307-Memberships & Dues $855 $1,000 $1,000 $1,150 $150 15% 52308-Reference Books & Periodicals $0 $300 $300 $0 -$300 -100% 52404-Bank Service Charge $241,549 $215,000 $240,000 $215,000 $0 0% 53101-Telephone $271 $973 $260 $264 -$709 -72.9% 53105 Postage Allocation $0 $0 $0 $216 $216 N/A Total Materials & Services:$272,832 $259,310 $347,649 $260,572 $1,262 0.5% Internal Services Charge 54102-Warehouse Purchases $1,763 $900 $900 $900 $0 0% 54104-Information Systems Allocation $89,616 $87,609 $87,609 $100,637 $13,028 14.9% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54108-Building & Ops Allocation $323,483 $317,624 $317,624 $349,374 $31,750 10% Total Internal Services Charge:$429,862 $425,033 $425,033 $477,371 $52,338 12.3% Capital Projects & Equipment 61201-Furniture & Fixtures $438 $1,200 $1,600 $1,200 $0 0% Total Capital Projects & Equipment:$438 $1,200 $1,600 $1,200 $0 0% Debt Service 71103-Bond Administration Fee $1,500 $0 $1,500 $1,500 $1,500 N/A 71107-POB Miscellaneous Principal $101,618 $92,463 $102,550 $101,676 $9,213 10% 71108-POB Miscellaneous Interest $60,219 $53,587 $59,972 $57,295 $3,708 6.9% Total Debt Service:$163,337 $146,050 $164,022 $160,471 $14,421 9.9% Total Expense Objects:$1,928,353 $1,812,762 $2,001,657 $2,005,069 $192,307 10.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,725,192 $1,571,392 $1,747,218 $1,730,660 $159,268 10.1% Pension Trust Fund $203,161 $207,666 $220,668 $213,115 $5,449 2.6% Section 115 Trust Fund $0 $33,704 $33,771 $61,294 $27,590 81.9% Total:$1,928,353 $1,812,762 $2,001,657 $2,005,069 $192,307 10.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 131 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 132 ACCOUNTING PROGRAM OVERVIEW The Accounting Division's primary responsibilities are the maintenance and control of the general ledger, accounts payable and payroll, and to ensure accountability as well as the timely provision of accurate financial information. The Division is the liaison between the City and its external auditors and works closely with Finance Administration to prepare the City's Annual Comprehensive Financial Report (ACFR). The City has been the recipient of the Government Finance Officers Association (GFOA) award for the Certificate of Achievement for Excellence in Financial Reporting annually since fiscal year 2000. The Accounting Division also participates in budget development by providing historical and projected financial and payroll information, issues standard monthly revenue and expenditure reports for internal customers, and generates reports required by external customers, including other governmental agencies, rating agencies, and the public. In addition, the Division accounts for the City's grants and related projects in conjunction with other departments. All City disbursements are the end product of accounts payable and payroll operations and are reflected by the weekly generation of vendor and employee checks. The accounts payable processes include: maintenance of vendor files; disposition of purchase orders and coordination with the Purchasing Division; assisting departments with queries and payment setup; and issuance of 1099 tax forms at calendar year end. Since the inception of the purchasing card (Pcard) program, there has been a reduction in number of accounts payable checks issued. Payroll processes include: monitoring of the Fair Labor Standards Act; Federal and State tax requirements; calculation of deductions and benefits; direct deposit of payroll; issuance of W-2 tax forms; and implementation of labor agreement provisions. The Division's accounting function involves the maintenance of the City's general ledger, including the generation and posting of journal entries, preparation of monthly and annual reports, and reconciliation of bank accounts. Specific responsibilities include preparation of State Controller Reports, Streets and Highways Report, Metro Reports, submission of direct assessments to the county, and bond/debt service accounting. OBJECTIVES FY 2026 Continue to uphold high accounting standards to ensure continued unmodified audit opinions. Implement new accounting standards as issued by the Governmental Accounting Standards Board. Implement a financial statement builder to assist in preparing the ACFR and State Controller Reports. Evaluate and revise processes for financial modules for efficiency. MAJOR SERVICE DELIVERY CHANGES The Accounting Division received approval for a new Accountant during the fiscal year 2025 mid-year process. The addition of this position will allow the division to provide additional support for the increasing statutory reporting requirements and allow for a dedicated resource to oversee City audits. This position will assist with the ensuring the accuracy and timeliness of the City’s financial reports and implementation and maintenance of governmental accounting standards. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Accountant 1.00 1.00 2.00 Accounting Supervisor 1.00 1.00 1.00 Accounting Technician -1.00 1.00 Financial Controller 1.00 1.00 1.00 Grants & Financial Analyst -1.00 1.00 Senior Accountant 1.00 1.00 1.00 4.00 6.00 7.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 133 Salaries & Benefits (79.6%)Salaries & Benefits (79.6%)Salaries & Benefits (79.6%) Materials & Services (11.6%)Materials & Services (11.6%)Materials & Services (11.6%) Internal Services Charge (8.7%)Internal Services Charge (8.7%)Internal Services Charge (8.7%) Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $474,254 $633,317 $665,323 $821,214 $187,897 29.7% 51103-Part Time Employee Salaries $35,601 $0 $3,665 $0 $0 0% 51201-Group Medical Insurance $70,997 $91,557 $89,956 $120,413 $28,856 31.5% 51202-Medicare $7,453 $9,183 $9,160 $11,907 $2,724 29.7% 51204-401A Plan City $21,276 $24,057 $24,502 $31,358 $7,301 30.3% 51211-PERS Regular Contributions $50,896 $60,723 $62,184 $76,832 $16,109 26.5% Total Salaries & Benefits:$660,477 $818,837 $854,790 $1,061,724 $242,887 29.7% Materials & Services 52101-Contract Services $161,310 $41,750 $49,630 $51,070 $9,320 22.3% 52102-Audit Services $62,361 $75,000 $75,000 $75,000 $0 0% 52201-Departmental Supplies $2,577 $1,800 $1,200 $2,800 $1,000 55.6% 52203-Printing $57,963 $1,020 $1,200 $1,020 $0 0% 52204-Postage $14,167 $300 $300 $300 $0 0% 52206-Advertising $1,519 $400 $400 $400 $0 0% 52301-Training, Conf & Meetings $14,274 $25,870 $17,000 $21,870 -$4,000 -15.5% 52307-Memberships & Dues $805 $520 $520 $520 $0 0% 52308-Reference Books & Periodicals $1,294 $1,200 $1,500 $1,200 $0 0% 53101-Telephone $165 $226 $140 $142 -$84 -37.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 134 EXPENDITURES BY TYPE 53105 Postage Allocation $0 $0 $0 $313 $313 N/A Total Materials & Services:$316,435 $148,086 $146,890 $154,635 $6,549 4.4% Internal Services Charge 54102-Warehouse Purchases $0 $0 $300 $0 $0 0% 54104-Information Systems Allocation $63,264 $94,133 $94,133 $116,343 $22,210 23.6% Total Internal Services Charge:$63,264 $94,133 $94,433 $116,343 $22,210 23.6% Capital Projects & Equipment 61201-Furniture & Fixtures $0 $1,500 $5,000 $1,500 $0 0% Total Capital Projects & Equipment:$0 $1,500 $5,000 $1,500 $0 0% Total Expense Objects:$1,040,176 $1,062,556 $1,101,113 $1,334,202 $271,646 25.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,040,176 $1,062,556 $1,101,113 $1,334,202 $271,646 25.6% Total General Fund:$1,040,176 $1,062,556 $1,101,113 $1,334,202 $271,646 25.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 135 REVENUE SERVICES PROGRAM OVERVIEW The primary goals of the Revenue Services Division are to improve the effectiveness and efficiency of all revenue programs; to provide exemplary customer service to the public; to develop and analyze measures that promote fiscal sustainability; and to increase City revenues where possible. The Revenue Division administers utility billing for water and sewer service, business & animal license issuance, miscellaneous accounts receivable, parking and administrative citation payments, ambulance and fire inspection payments, residential and commercial parking pass distribution, lease and franchise agreement maintenance, transient occupancy tax collection from hotels and short-term rentals, and central cashiering including: daily deposits, collections, and reconciliation. Revenue Services staff are responsible for the analysis and creation of the Citywide user fees and cost allocation plan. The Division prepares the annual possessory interest report to the Los Angeles County Assessor. Additionally, the Division oversees the administration of the City's short-term rental program and Advanced Meter Infrastructure (AMI) client and customer portal. Revenue Services strives to improve and streamline productivity, and continually looks for opportunities to enhance the customer experience through service improvements and online technology. OBJECTIVES FY 2026 Initiate Business License Tax ordinance update with the goal of a Proposition 218 ballot measure in fall 2026. Maintain a high level of customer satisfaction with the recent Business License system implementation that provides enhanced features to streamline the process for remitting annual business license taxes. Initiate a Request for Proposals for services for implementation of a new animal licensing system to streamline licensing processes and provide greater convenience for pet owners. By integrating a user-friendly interface, online payments options and automated reminders, an advanced animal license system will be able to reduce administrative workload while increasing compliance and satisfaction. Initiate a Request for Proposals for services to audit the City's transient occupancy tax (TOT) program, including hotels, motels and short- term rental operators; facility and land leases; profit sharing agreements; and studio lease agreements. Initiate a Request for Proposals for services to improve the short-term rental program by enhancing efficiencies through a user-friendly payment portal and ensuring overall program compliance from operators. Maintain the high rate of collection from utility billing, accounts receivable and licensing customers. Continue to deliver expedient and professional customer service. Utilize the City’s new Advanced Metering Infrastructure (AMI) digital water meter system and integrated software, Harmony, to import electronic consumption reads needed for utility billing, and continually assess additional improvements in utility billing operations. Continue to enhance customer service by promoting the AMI integrated portal, My Water Advisor, so customers can track water consumption and sign up for leak alerts. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 136 MAJOR SERVICE DELIVERY CHANGES In the past year, the Revenue Services Division has embarked on a variety of projects and new programs that impact business licensing, transient occupancy tax (TOT) collection, and other administrative functions. For business licensing, the major program enhancements include (1) A new partnership with HdL Companies to implement a new Business Licensing System, (2) enhanced features that allow businesses to remit annual business licenses renewals and new applications online, (3) ability for businesses to remit payments online via credit card or e-check, and (4) increase our customer service footprint with HdL Companies’ business support center that provides the capability to answer 90%+ call calls in under 1 minute. Furthermore, the Revenue Division has experienced an unprecedented surge in Short-Term Rental (STR) operators in the City of Manhattan Beach. As of March 2025, there were approximately 152 Short Term Rentals licensed in the City, all of which obtained a business license and are required to remit transient occupancy taxes (TOT) on a monthly basis. By comparison, the City currently has 13 hotels in town that remit TOT tax on a monthly basis, so the growth in Short Term Rentals has increased the administrative needs exponentially in terms of managing monthly TOT tax payments and remittance forms. With this growth, the department is seeking possible solutions to help streamline the overall process for TOT remittance payments and reporting in addition to increasing compliance with the short-term rental operators for continued success of this $1 million+ revenue generating program. For FY 2026, the planned implementation of a new animal license system and short-term rental portal will allow the Revenue Division to further enhance customer service delivery by responding to customer needs and their recurring requests to offer an online payment portal. The Revenue Division has made notable changes to its staffing structure to enhance operational efficiency. Specifically, the number of Lead Account Specialists will be reduced from two positions to one. To maintain smooth operations, the FY 2026 Budget will allocate funds for the addition of a Management Analyst. This role will support various operational functions, including contract management, data analysis, report preparation, budget planning, and the implementation of process improvements. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Account Specialist I/II 3.00 4.00 4.00 Lead Account Specialist 2.00 2.00 1.00 Management Analyst --1.00 Revenue Services Supervisor 1.00 1.00 1.00 6.00 7.00 7.00 1,378 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 137 Salaries & Benefits (56.5%)Salaries & Benefits (56.5%)Salaries & Benefits (56.5%) Materials & Services (35.3%)Materials & Services (35.3%)Materials & Services (35.3%) Internal Services Charge (8.2%)Internal Services Charge (8.2%)Internal Services Charge (8.2%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $465,170 $516,509 $481,337 $578,055 $61,546 11.9% 51103-Part Time Employee Salaries $71,550 $33,767 $47,764 $32,852 -$915 -2.7% 51104-Overtime Regular Employees $624 $6,260 $3,131 $3,817 -$2,443 -39% 51201-Group Medical Insurance $101,770 $124,306 $114,508 $120,865 -$3,441 -2.8% 51202-Medicare $7,629 $8,285 $7,754 $8,709 $424 5.1% 51204-401A Plan City $3,955 $4,370 $4,956 $4,730 $360 8.2% 51211-PERS Regular Contributions $51,433 $54,411 $84,467 $57,210 $2,799 5.1% Total Salaries & Benefits:$702,131 $747,908 $743,917 $806,238 $58,330 7.8% Materials & Services 52101-Contract Services $102,873 $191,315 $235,958 $289,120 $97,805 51.1% 52103-Software Purchases and Subscriptions $96,333 $110,000 $55,000 $129,000 $19,000 17.3% 52107-Legal Services $0 $0 $0 $25,000 $25,000 N/A 52201-Departmental Supplies $4,775 $9,400 $4,700 $8,400 -$1,000 -10.6% 52203-Printing $5,998 $8,890 $2,685 $6,390 -$2,500 -28.1% 52204-Postage $40,690 $34,266 $29,608 $27,500 -$6,766 -19.7% 52206-Advertising $578 $1,800 $900 $1,800 $0 0% 52301-Training, Conf & Meetings $6,144 $5,050 $2,525 $5,730 $680 13.5% 52307-Memberships & Dues $619 $425 $600 $650 $225 52.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 138 EXPENDITURES BY TYPE 53101-Telephone $291 $570 $260 $263 -$307 -53.9% 53105 Postage Allocation $0 $0 $0 $10,651 $10,651 N/A Total Materials & Services:$258,301 $361,716 $332,236 $504,504 $142,788 39.5% Internal Services Charge 54102-Warehouse Purchases $0 $1,000 $750 $500 -$500 -50% 54104-Information Systems Allocation $110,712 $94,599 $94,599 $116,926 $22,327 23.6% Total Internal Services Charge:$110,712 $95,599 $95,349 $117,426 $21,827 22.8% Total Expense Objects:$1,071,144 $1,205,223 $1,171,502 $1,428,168 $222,945 18.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,071,144 $1,205,223 $1,171,502 $1,428,168 $222,945 18.5% Total General Fund:$1,071,144 $1,205,223 $1,171,502 $1,428,168 $222,945 18.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 139 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 140 PURCHASING PROGRAM OVERVIEW The Purchasing Division is responsible for procuring and managing the acquisition of materials and contracted services while ensuring the judicious utilization of public funds through competitive processes and cooperative purchasing agreements. Additionally, the Division provides assistance to departments in monitoring spending on executed contracts, tracking departments' small-dollar expenditures, managing the City's Purchasing Card program, maintaining an inventory of high-use items such as paper, building maintenance, and custodial supplies to fulfill Citywide department needs, assisting City staff in developing specifications for competitive bids, and obtaining the best return for surplus property. OBJECTIVES FY 2026 Ensure all routine contracts are up-to-date by utilizing the eProcurement software and further improving the timing of renewal and re- solicitation of contracts. Streamline the bidding process by providing extensive training to staff on the new eProcurement software and specification writer. Revise and optimize procedures of the ERP system to facilitate a more efficient contract, purchase order, and purchase card process. Develop comprehensive purchasing guidelines, training videos, and other resources for City staff to further enhance their knowledge of procurement procedures, purchase cards, and contracts. Actively seek cost-effective sourcing of warehouse supplies, including personal protective equipment, maintenance and custodial supplies, automotive parts, and paper. Review Purchase Card policy and revamp the process with new guidelines that address potential deficiencies. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Purchasing Analyst 1.00 1.00 1.00 Purchasing Assistant 1.00 1.00 1.00 Purchasing Supervisor 1.00 1.00 1.00 3.00 3.00 3.00 1,612 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 141 Salaries & Benefits (49.5%)Salaries & Benefits (49.5%)Salaries & Benefits (49.5%) Materials & Services (42.4%)Materials & Services (42.4%)Materials & Services (42.4%) Internal Services Charge (7.5%)Internal Services Charge (7.5%)Internal Services Charge (7.5%) Capital Projects & Equipment (0.6%)Capital Projects & Equipment (0.6%)Capital Projects & Equipment (0.6%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $285,903 $279,067 $306,363 $297,263 $18,196 6.5% 51103-Part Time Employee Salaries $40,740 $37,237 $37,237 $37,238 $1 0% 51104-Overtime Regular Employees $686 $1,100 $1,000 $400 -$700 -63.6% 51201-Group Medical Insurance $36,143 $33,976 $37,320 $35,410 $1,434 4.2% 51202-Medicare $4,720 $4,586 $4,904 $4,850 $264 5.8% 51204-401A Plan City $9,433 $8,937 $10,396 $9,438 $501 5.6% 51211-PERS Regular Contributions $28,280 $26,376 $31,341 $31,130 $4,754 18% Total Salaries & Benefits:$405,905 $391,279 $428,561 $415,729 $24,450 6.2% Materials & Services 52101-Contract Services $133,653 $135,805 $160,805 $175,520 $39,715 29.2% 52201-Departmental Supplies $1,442 $3,200 $6,500 $1,500 -$1,700 -53.1% 52204-Postage $1,021 $897 $500 $500 -$397 -44.3% 52205-Uniforms/Safety Equipment $2,285 $2,000 $1,500 $1,500 -$500 -25% 52208-Automotive Parts $22,214 $30,000 $30,000 $30,000 $0 0% 52301-Training, Conf & Meetings $6,643 $12,850 $12,850 $9,750 -$3,100 -24.1% 52307-Memberships & Dues $985 $890 $890 $890 $0 0% 52401-Warehouse Inventory Purchases $128,151 $120,000 $124,500 $135,000 $15,000 12.5% 53101-Telephone $199 $272 $170 $173 -$99 -36.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 142 EXPENDITURES BY TYPE 53105 Postage Allocation $0 $0 $0 $932 $932 N/A Total Materials & Services:$296,592 $305,914 $337,715 $355,765 $49,851 16.3% Internal Services Charge 54102-Warehouse Purchases $16,636 $8,150 $10,900 $10,150 $2,000 24.5% 54104-Information Systems Allocation $47,880 $47,067 $47,067 $50,028 $2,961 6.3% 54107-Fleet Maintenance Allocation $1,982 $2,698 $2,698 $2,638 -$60 -2.2% Total Internal Services Charge:$66,497 $57,915 $60,665 $62,816 $4,901 8.5% Capital Projects & Equipment 61201-Furniture & Fixtures $0 $1,200 $0 $5,200 $4,000 333.3% Total Capital Projects & Equipment:$0 $1,200 $0 $5,200 $4,000 333.3% Total Expense Objects:$768,994 $756,308 $826,941 $839,510 $83,202 11% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $497,561 $494,623 $558,006 $521,110 $26,487 5.4% Building Maintenance & Ops Fund $271,433 $261,685 $268,935 $318,400 $56,715 21.7% Total:$768,994 $756,308 $826,941 $839,510 $83,202 11% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 143 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 144 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 146 MISSION To support a productive environment in which a skilled and committed workforce can maximize the delivery of excellent municipal service, while minimizing liability and mitigating risk. DEPARTMENT OVERVIEW The Human Resources Department supports the City’s most valuable resource and strives to create a safe and collaborative working environment in which employees can maximize their potential. The Human Resources (Administration) and Risk Management divisions work together to mitigate City liability and enhance employee engagement and commitment. The services for employees and City departments include recruitment and selection, benefits administration, classification and compensation, employee and labor relations, training and safety training, leadership development, employment/labor legal compliance, risk management, wellness initiatives, and workers’ compensation. RECENT ACCOMPLISHMENT HIGHLIGHTS Completed negotiations with four associations (Police Officers' Association, Police Management Association, Mid-Management Employees Association, and Teamsters Local 911), resulting in a three-year labor agreement. Supported the Police Department in the goal of achieving full staffing, including continuous evaluation of recruitment methods and incentives. Coordinated City-wide mandatory harassment prevention training to all non-supervisory and supervisory employees. Coordinated City-wide mandatory training on Cal/OSHA regulations, Injury and Illness Prevention Program, and Accident/Incident Investigation to supervisors. Implemented the Workplace Violence Prevention Plan. Recruited and filled 73 full-time positions, including 25 internal promotions. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 147 PERFORMANCE MEASURES RECRUITMENTS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Estimate 28 days 33 days 35 days 35 days COST RECOVERY OF DAMAGE TO CITY PROPERTY PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Target 73%53%62%70% ESTIMATED VACANCY RATE (FULL-TIME) PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Target 6.0%7.7%8.0%5.0% EMPLOYEE INJURY AND ILLNESS INCIDENCE RATE PRIOR YEAR TARGET CY 2023 CY 2024 CY 2025 CY 2026 Actual Actual Estimate Target 9.7 12.1 8.0 8.0 This metric measures the average number of business days from the time a job is posted to the establishment of the Eligibility List and/or eligible candidates referred to the department. Quicker recruitment periods ensure critical positions are filled in a timely fashion. If City property is damaged by a third party and the City expends money to repair or replace the damaged property, the City will seek to recover its cost by pursuing subrogation against the at-fault party. This number reflects the percentage of funds were successfully recovered, thereby reducing expenditures to the City. This metric measures the approximate number of vacant positions during the budget process, based on budgeted full-time positions authorized to fill. The metric varies throughout the year but is an indicator of good processes for the City and the attractiveness of the vacancies that are advertised. The U.S. Bureau of Labor Statistics produces a wide range of information about workplace injuries and illnesses. The incidence rate represents the number of injuries and illnesses per 100 full-time workers. The incidence rate serves as a benchmark to compare and evaluate safety performance against other organizations and past years. These rates can help identify both problem areas and progress in preventing work- related injuries and illnesses. While Performance Measures are generally measured on a fiscal year basis, this data is maintained with the U.S. Bureau of Labor Statistics on a calendar year basis. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 148 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 149 DEPARTMENT EXPENDITURES BY PROGRAM Risk Management (82.9%)Risk Management (82.9%)Risk Management (82.9%) Human Resources Admin (17.1%)Human Resources Admin (17.1%)Human Resources Admin (17.1%) Expenditures Human Resources Human Resources Admin $1,739,350 $2,043,484 $2,258,152 $2,459,236 $415,752 20.3% Total Human Resources Admin:$1,739,350 $2,043,484 $2,258,152 $2,459,236 $415,752 20.3% Risk Management Risk Management $771,170 $964,313 $1,001,716 $992,356 $28,043 2.9% Liability $4,229,049 $3,749,978 $5,015,742 $6,092,878 $2,342,900 62.5% Workers Compensation $4,527,958 $4,656,601 $4,658,774 $4,811,885 $155,284 3.3% Total Risk Management:$9,528,177 $9,370,892 $10,676,232 $11,897,119 $2,526,227 27% Total Human Resources:$11,267,527 $11,414,376 $12,934,384 $14,356,355 $2,941,979 25.8% Total Expenditures:$11,267,527 $11,414,376 $12,934,384 $14,356,355 $2,941,979 25.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 150 SCHEDULE OF EXPENDITURE DETAIL Materials & Services (84.7%)Materials & Services (84.7%)Materials & Services (84.7%) Salaries & Benefits (12.2%)Salaries & Benefits (12.2%)Salaries & Benefits (12.2%) Internal Services Charge (2.6%)Internal Services Charge (2.6%)Internal Services Charge (2.6%) Debt Service (0.5%)Debt Service (0.5%)Debt Service (0.5%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $991,953 $1,030,553 $1,179,397 $1,116,706 $86,153 8.4% 51103-Part Time Employee Salaries $116,314 $170,218 $200,000 $219,472 $49,254 28.9% 51104-Overtime Regular Employees $992 $1,750 $2,250 $3,750 $2,000 114.3% 51113-Commuter Pay $7,620 $10,000 $6,000 $10,000 $0 0% 51201-Group Medical Insurance $148,938 $175,925 $155,595 $161,961 -$13,964 -7.9% 51202-Medicare $15,696 $17,411 $20,280 $18,722 $1,311 7.5% 51203-Medical Retirement Contrs $0 $0 $0 $4,580 $4,580 N/A 51204-401A Plan City $42,234 $44,575 $53,380 $47,064 $2,489 5.6% 51211-PERS Regular Contributions $102,064 $103,463 $128,735 $107,709 $4,246 4.1% 51213-PERS Regular Net Pension Liab $0 $17,937 $17,939 $32,620 $14,683 81.9% 51231-Unemployment $204 $200 $200 $200 $0 0% 51232-Workers Compensation $27,240 $0 $0 $31,500 $31,500 N/A Total Salaries & Benefits:$1,453,255 $1,572,032 $1,763,776 $1,754,284 $182,252 11.6% Materials & Services 52101-Contract Services $387,829 $503,374 $540,392 $613,374 $110,000 21.9% 52103-Software Purchases and Subscriptions $37,877 $40,763 $40,763 $43,349 $2,586 6.3% 52106-Physical/Psychological Exams $38,789 $76,200 $76,200 $76,200 $0 0% 52107-Legal Services $101,508 $210,000 $210,000 $300,000 $90,000 42.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 151 52201-Departmental Supplies $4,802 $14,000 $14,000 $10,000 -$4,000 -28.6% 52202-Office Supplies $4,257 $5,500 $5,500 $5,500 $0 0% 52203-Printing $50 $150 $150 $150 $0 0% 52204-Postage $965 $720 $720 $1,320 $600 83.3% 52301-Training, Conf & Meetings $80,259 $123,500 $123,500 $111,000 -$12,500 -10.1% 52304-Employee Awards & Events $14,279 $35,000 $35,000 $35,000 $0 0% 52305-Recruitment Costs $38,060 $69,450 $69,450 $73,450 $4,000 5.8% 52306-Tuition Reimbursement $18,085 $30,000 $45,000 $45,000 $15,000 50% 52307-Memberships & Dues $5,490 $7,625 $7,625 $8,520 $895 11.7% 52601-Insurance Premiums $1,611,966 $2,224,678 $2,067,545 $2,861,878 $637,200 28.6% 52602-Claims Paid $6,239,868 $5,000,000 $6,501,717 $6,500,000 $1,500,000 30% 52603-Claims Administration $258,156 $267,816 $281,832 $277,680 $9,864 3.7% 52604-Miscellaneous Bonds/Insurance $9,783 $11,300 $10,777 $15,000 $3,700 32.7% 52605-Unemployment Claims $16,074 $25,000 $20,000 $25,000 $0 0% 52606-Property Insurance $565,372 $820,000 $734,860 $1,149,000 $329,000 40.1% 52801-Computers, Supplies & Software $0 $2,000 $2,000 $1,000 -$1,000 -50% 53101-Telephone $429 $589 $385 $391 -$198 -33.6% 53105 Postage Allocation $0 $0 $0 $747 $747 N/A Total Materials & Services:$9,433,900 $9,467,665 $10,787,416 $12,153,559 $2,685,894 28.4% Internal Services Charge 54102-Warehouse Purchases $625 $200 $300 $500 $300 150% 54104-Information Systems Allocation $148,476 $153,782 $153,782 $203,019 $49,237 32% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54108-Building & Ops Allocation $131,799 $125,574 $125,574 $142,170 $16,596 13.2% Total Internal Services Charge:$295,900 $298,456 $298,556 $372,149 $73,693 24.7% Debt Service 71107-POB Miscellaneous Principal $53,113 $48,257 $53,404 $48,840 $583 1.2% 71108-POB Miscellaneous Interest $31,359 $27,966 $31,232 $27,523 -$443 -1.6% Total Debt Service:$84,472 $76,223 $84,636 $76,363 $140 0.2% Total Expense Objects:$11,267,527 $11,414,376 $12,934,384 $14,356,355 $2,941,979 25.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,739,350 $2,032,287 $2,246,398 $2,438,873 $406,586 20% Insurance Reserve Fund $9,528,177 $9,370,892 $10,676,232 $11,897,119 $2,526,227 27% Section 115 Trust Fund $0 $11,197 $11,754 $20,363 $9,166 81.9% Total:$11,267,527 $11,414,376 $12,934,384 $14,356,355 $2,941,979 25.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 152 HUMAN RESOURCES ADMINISTRATION PROGRAM OVERVIEW The Human Resources Administration Division provides assistance to employees in all areas related to their employment, supports employee engagement initiatives, and works with City leadership to align staffing resources with organizational objectives. Major functional areas include organizational development, recruitment and selection, classification and compensation, employee and labor relations, professional development and training, policy development, employee benefits, and employment law legal compliance. OBJECTIVES FY 2026 Continue to complete comprehensive updates to modernize the City's rules, policies, procedures and handbook for employees to utilize as a resource. Continue to expand staff development by providing a comprehensive suite of training, professional development, and leadership development. Implement and provide staff training on the new modules of the NEOGOV software (Perform) and Performace Management and Coaching. Negotiate with the Manhattan Beach Fire Association (MBFA). AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Executive Assistant 0.50 -- Human Resources Analyst -1.00 1.00 Human Resources Assistant -0.50 0.50 Human Resources Director 0.50 0.50 0.50 Human Resources Manager 1.00 1.00 1.00 Human Resources Technician 2.00 1.00 1.00 Senior Human Resources Analyst 1.00 1.00 1.00 5.00 5.00 5.00 4,048 hours are budgeted in FY 2024-2025 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 153 EXPENDITURES BY TYPE Salaries & Benefits (48.7%)Salaries & Benefits (48.7%)Salaries & Benefits (48.7%) Materials & Services (38.8%)Materials & Services (38.8%)Materials & Services (38.8%) Internal Services Charge (10.5%)Internal Services Charge (10.5%)Internal Services Charge (10.5%) Debt Service (1.9%)Debt Service (1.9%)Debt Service (1.9%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $611,395 $623,081 $721,622 $689,690 $66,609 10.7% 51103-Part Time Employee Salaries $116,314 $170,218 $200,000 $219,472 $49,254 28.9% 51104-Overtime Regular Employees $992 $500 $1,000 $2,500 $2,000 400% 51113-Commuter Pay $7,620 $10,000 $6,000 $10,000 $0 0% 51201-Group Medical Insurance $112,929 $121,019 $122,632 $112,074 -$8,945 -7.4% 51202-Medicare $10,301 $11,503 $13,664 $12,531 $1,028 8.9% 51203-Medical Retirement Contrs $0 $0 $0 $2,290 $2,290 N/A 51204-401A Plan City $26,275 $26,658 $33,326 $28,545 $1,887 7.1% 51211-PERS Regular Contributions $66,875 $64,603 $87,402 $68,407 $3,804 5.9% 51213-PERS Regular Net Pension Liab $0 $11,197 $11,754 $20,363 $9,166 81.9% 51231-Unemployment $204 $200 $200 $200 $0 0% 51232-Workers Compensation $27,240 $0 $0 $31,500 $31,500 N/A Total Salaries & Benefits:$980,144 $1,038,979 $1,197,600 $1,197,572 $158,593 15.3% Materials & Services 52101-Contract Services $163,597 $165,394 $202,412 $275,394 $110,000 66.5% 52103-Software Purchases and Subscriptions $37,877 $40,763 $40,763 $43,349 $2,586 6.3% 52106-Physical/Psychological Exams $38,789 $76,200 $76,200 $76,200 $0 0% 52107-Legal Services $101,508 $210,000 $210,000 $300,000 $90,000 42.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 154 52201-Departmental Supplies $4,802 $14,000 $14,000 $10,000 -$4,000 -28.6% 52202-Office Supplies $4,257 $5,500 $5,500 $5,500 $0 0% 52203-Printing $50 $150 $150 $150 $0 0% 52204-Postage $965 $720 $720 $1,320 $600 83.3% 52301-Training, Conf & Meetings $75,043 $90,300 $90,300 $79,650 -$10,650 -11.8% 52304-Employee Awards & Events $14,279 $35,000 $35,000 $35,000 $0 0% 52305-Recruitment Costs $38,060 $69,450 $69,450 $73,450 $4,000 5.8% 52306-Tuition Reimbursement $18,085 $30,000 $45,000 $45,000 $15,000 50% 52307-Memberships & Dues $5,190 $7,075 $7,075 $7,970 $895 12.7% 52801-Computers, Supplies & Software $0 $2,000 $2,000 $1,000 -$1,000 -50% 53101-Telephone $331 $454 $285 $289 -$165 -36.3% 53105 Postage Allocation $0 $0 $0 $747 $747 N/A Total Materials & Services:$502,835 $747,006 $798,855 $955,019 $208,013 27.8% Internal Services Charge 54102-Warehouse Purchases $625 $200 $300 $500 $300 150% 54104-Information Systems Allocation $92,688 $95,997 $95,997 $126,814 $30,817 32.1% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54108-Building & Ops Allocation $97,835 $96,062 $96,062 $105,665 $9,603 10% Total Internal Services Charge:$206,147 $211,159 $211,259 $259,439 $48,280 22.9% Debt Service 71107-POB Miscellaneous Principal $31,535 $29,338 $31,826 $30,192 $854 2.9% 71108-POB Miscellaneous Interest $18,688 $17,002 $18,612 $17,014 $12 0.1% Total Debt Service:$50,224 $46,340 $50,438 $47,206 $866 1.9% Total Expense Objects:$1,739,350 $2,043,484 $2,258,152 $2,459,236 $415,752 20.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,739,350 $2,032,287 $2,246,398 $2,438,873 $406,586 20% Section 115 Trust Fund $0 $11,197 $11,754 $20,363 $9,166 81.9% Total:$1,739,350 $2,043,484 $2,258,152 $2,459,236 $415,752 20.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 155 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 156 RISK MANAGEMENT PROGRAM OVERVIEW The Risk Management Division supports employees through wellness, safety and injury/illness prevention programs, strategizes with the City Attorney and management staff to successfully resolve liability claims, administers workers’ compensation and unemployment claims, administers City insurance programs, and provides employee training in various areas. Risk Management is committed to a proactive, preventative, and creative approach to enhance employee safety and mitigate risk. OBJECTIVES FY 2026 Continue to coordinate safety inspections of City facilities. Continue to provide employees with training opportunities on various health, safety, and wellness topics. Continue to foster a “safety first” culture via training and education. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Executive Assistant 0.50 -- Human Resources Assistant -0.50 0.50 Human Resources Director 0.50 0.50 0.50 Human Resources Technician 1.00 1.00 1.00 Risk Manager 1.00 1.00 1.00 3.00 3.00 3.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 157 Materials & Services (94.1%)Materials & Services (94.1%)Materials & Services (94.1%) Salaries & Benefits (4.7%)Salaries & Benefits (4.7%)Salaries & Benefits (4.7%) Internal Services Charge (0.9%)Internal Services Charge (0.9%)Internal Services Charge (0.9%) Debt Service (0.2%)Debt Service (0.2%)Debt Service (0.2%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $380,558 $407,472 $457,775 $427,016 $19,544 4.8% 51104-Overtime Regular Employees $0 $1,250 $1,250 $1,250 $0 0% 51201-Group Medical Insurance $36,009 $54,906 $32,963 $49,887 -$5,019 -9.1% 51202-Medicare $5,395 $5,908 $6,616 $6,191 $283 4.8% 51203-Medical Retirement Contrs $0 $0 $0 $2,290 $2,290 N/A 51204-401A Plan City $15,959 $17,917 $20,054 $18,519 $602 3.4% 51211-PERS Regular Contributions $35,190 $38,860 $41,333 $39,302 $442 1.1% 51213-PERS Regular Net Pension Liab $0 $6,740 $6,185 $12,257 $5,517 81.9% Total Salaries & Benefits:$473,111 $533,053 $566,176 $556,712 $23,659 4.4% Materials & Services 52101-Contract Services $224,232 $337,980 $337,980 $337,980 $0 0% 52301-Training, Conf & Meetings $5,216 $33,200 $33,200 $31,350 -$1,850 -5.6% 52307-Memberships & Dues $300 $550 $550 $550 $0 0% 52601-Insurance Premiums $1,611,966 $2,224,678 $2,067,545 $2,861,878 $637,200 28.6% 52602-Claims Paid $6,239,868 $5,000,000 $6,501,717 $6,500,000 $1,500,000 30% 52603-Claims Administration $258,156 $267,816 $281,832 $277,680 $9,864 3.7% 52604-Miscellaneous Bonds/Insurance $9,783 $11,300 $10,777 $15,000 $3,700 32.7% 52605-Unemployment Claims $16,074 $25,000 $20,000 $25,000 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 158 EXPENDITURES BY TYPE 52606-Property Insurance $565,372 $820,000 $734,860 $1,149,000 $329,000 40.1% 53101-Telephone $99 $135 $100 $102 -$33 -24.4% Total Materials & Services:$8,931,065 $8,720,659 $9,988,561 $11,198,540 $2,477,881 28.4% Internal Services Charge 54104-Information Systems Allocation $55,788 $57,785 $57,785 $76,205 $18,420 31.9% 54108-Building & Ops Allocation $33,964 $29,512 $29,512 $36,505 $6,993 23.7% Total Internal Services Charge:$89,752 $87,297 $87,297 $112,710 $25,413 29.1% Debt Service 71107-POB Miscellaneous Principal $21,578 $18,919 $21,578 $18,648 -$271 -1.4% 71108-POB Miscellaneous Interest $12,671 $10,964 $12,620 $10,509 -$455 -4.1% Total Debt Service:$34,249 $29,883 $34,198 $29,157 -$726 -2.4% Total Expense Objects:$9,528,177 $9,370,892 $10,676,232 $11,897,119 $2,526,227 27% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Insurance Reserve Fund $9,528,177 $9,370,892 $10,676,232 $11,897,119 $2,526,227 27% Total Insurance Reserve Fund:$9,528,177 $9,370,892 $10,676,232 $11,897,119 $2,526,227 27% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 159 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 160 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 162 MISSION The Parks & Recreation Department is committed to creating community and enriching quality of life. DEPARTMENT OVERVIEW The Parks and Recreation Department, consisting of 21 full-time and over 150 seasonal and part-time staff, provides a wide variety of innovative, collaborative, and impactful recreational, cultural, and educational programs and services for all ages. Department divisions include Administration, Recreation Services, Cultural Arts, Sports and Aquatics, Volunteers, Older Adults, and Transportation. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 163 RECENT ACCOMPLISHMENT HIGHLIGHTS ADMINISTRATION Completed installation of a new fitness court in Polliwog Park in collaboration with the Public Works Department. Completed Polliwog Park Dog Run expansion and upgrades in collaboration with the Public Works Department. Obtained approval for the Sand Dune Park Master Plan. Worked with the Hometown Fair Committee to update and renew a ten-year agreement. Developed the Parks and Recreation Strategic Plan, a multiyear plan to enhance recreational facilities, elevate and expand community programming, and prioritize employee development. Offered over 1,500 activities for nearly 20,000 participants in 2024, and collected over $4 million in revenue to offset the costs of providing the programs. Collaborated with the following organizations to offer additional programs and services: Manhattan Beach Unified School District Beach Cities Health District LA County Library LA County Beaches & Harbors Manhattan Beach Downtown Business Professional Association (MBDBPA) Manhattan Beach Country Club Manhattan Beach Rotary Club AVP Beach Volleyball SPORTS & AQUATICS Helped facilitate over 400,000 visits to the City’s parks and recreational facilities. Managed many of the City’s signature events, including Pumpkin Race, Family Campout, Halloween Carnival, Pier Lighting, 6-Man Beach Volleyball Tournament, MBO Tennis Tournament, Pickleball Turkey Tournament, Juneteenth Celebration, and more. Offered over 100 one-week summer camps, an 88% increase compared to 2023. Replaced picnic benches at Polliwog Park and 8 Street Parkette, and replaced fountain, basketball hoop, and backboard at Larsson Street Parkette. Added new AEDs at several recreational facilities in collaboration with the Manhattan Beach Fire Department RECREATION SERVICES Collaborated with Public Works to install and maintain a new playground and StoryWalk in Polliwog Park. Collaborated with Public Works to install and maintain new exercise equipment on the Strand. Updated the HVAC in Rocketship Hall at Marine Avenue Park to expand summer programming options. Helped facilitate over 400,000 visits to the City’s parks and recreational facilities. Increased the number of participants in the Afterschool Program at Live Oak Park to help meet the needs of Manhattan Beach residents. Managed many of the City’s signature events, including Pumpkin Race, Family Campout, Halloween Carnival, Pier Lighting, 6-Man Beach Volleyball Tournament, MBO Tennis Tournament, Pickleball Turkey Tournament, and more. CULTURAL ARTS Installed 7 murals on Public Property as approved and directed by City Council. Completed Phase III of Historical Collection Plan which included digitization of photography and newspapers. Released RFQ related to Bruce’s Beach artwork. Implemented weekly gallery tours for each exhibition at MBAC. Installed new pottery kiln and kiln complex. Received direction from City Council to restore 6 public artworks. Expanded class offerings at MBAC through digital design classes, kid’s drawing classes, staff directed clay camps, and Raku workshops. Utilized recycled clay from the Live Oak Ceramics studio to prepare free clay activities during Hometown Fair and Pumpkin Race, raising awareness of the pottery program. These events served over 400 people in total. Increased glaze lab participation by adding additional hours on Wednesday and Thursday nights. Completed phase II of assessment of city’s public art collection with RLA Conservation and Associates, resulting in care and repair recommendations and long-term maintenance plan. COMMUNITY PROGRAMS OLDER ADULT PROGRAM Continued community partnerships, including Beach Cities Health District, AARP Tax-Aide tax assistance, Center for Health Care Rights Medicare assistance, H.E.L.P., Alzheimer’s Association, Friendship Foundation, Manhattan Beach Unified School District and more. th CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 164 Continued relationship with SCAN, providing presentations on topics relating to emotional and physical well being. Offered programs to help alleviate anxiety and feelings of insecurity experienced by older adults, and promote well being. Initiated a weekly mindfulness class, continued with the Dementia Caregiver Support Groups, expanded Chatting with Charlotte, and facilitated discussion groups. Added new i-classes and continued activities including art class, senior yoga programs, dance class, Bridge, and Canasta or Hand & Foot, French Language Conversation Group, Socrates Cafe, Walking Club, and new fitness classes. Facilitated intergenerational programming including a poetry class with Mira Costa students, the Older Adult Poetry Circle, and the Library Commission. Created a 2025 Poetry Circle Book with poems from the Poetry Circle and Mira Costa High School Students. This will be an on-going collaboration. Provided an in-person holiday luncheon at the Joslyn Community Center for 250 older adults. Held bi-monthly Lunch Bunch Program; Coffee Technology and You with Mira Costa High School Students providing individual technology assistance to older adults. Offered monthly Dine & Discover luncheon with educational presentations, and entertainment. Expanded bus excursions to include transport to local happenings such as the Beach Cities Symphony, Paramount Pictures Tour, Dodger’s Stadium Tour, Cosm, Hsi Lai Temple, and more. Established a relationship with The Foundation for Senior Services to provide workshops to older adults. TRANSPORTATION Provided transportation to seniors for a variety of purposes including: doctor visits, Joslyn Community Center activities, and church services. Reinstituted evening and daytime excursions that were halted due to COVID. Increased Dial-A-Ride ridership by 10%. Currently, there are 1,453 registered customers. Increased service for Mira Costa High School’s CHOICE program. Procured two passenger buses utilizing the $450,000 grant awarded. VOLUNTEERS Facilitated 18,000 volunteer donated hours, resulting in an approximate value this year of $539,100 to the City. The American Association of Retired Persons (AARP) has calculated that the current average value for volunteers in California is $29.95 per hour. Continued to work collaboratively with the MBUSD to offer volunteer opportunities at the City for CHOICE (The Community, Healthy Living, Opportunity, Independence, Career, and Emotional Social Well-being) transition students. CHOICE is the MBUSD transition program for neurodiverse young adults. Continued to provide Manhattan Beach, South Bay High School students, and NCL (National Charity League) with the opportunity to volunteer from home through the Grams for Seniors Program. Over 12,000 notes of kindness were made. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 165 PERFORMANCE MEASURES HOW WOULD YOU RATE MANHATTAN BEACH AS A PLACE TO RECREATE? PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget N/A N/A 90%N/A DEPARTMENT GENERAL FUND REVENUE EQUALS AT LEAST 35% OF EXPENDITURES PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 54%40%47%35% RESIDENTS SATISFIED WITH SERVICES AND PROGRAMS FOR SENIORS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget N/A N/A 95%N/A PUBLIC ART PROJECTS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 8 29 29 10 RESIDENTS SATISFIED WITH SPECIAL EVENTS (CONCERTS IN THE PARK, HOLIDAY FIREWORKS, ETC) PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget N/A N/A 95%N/A The Community Opinion Survey results show that more than eight out of ten residents have positive/favorable opinions about the City’s recreation opportunities, a key indicator of quality of life in the City. The City’s Adopted Annual Budget includes a financial policy that Parks & Recreation Department General Fund revenues equal at least 35 percent of total Department General Fund expenditures. The Parks & Recreation Department has exceeded this expectation the last several years. Calculation includes a citywide insurance allocation that can vary greatly from year to year. Examples of city services and programs for seniors include classes, presentations, conversations, lunches, games, special events, Dial-A-Ride, volunteer opportunities, and more. Satisfaction with services (derived from the statistically-valid biennial Community Opinion Survey) allows the City to explore whether services are optimal to residents. The Public Arts Trust Fund utilizes funding set aside from a 1% development fee on specific residential, commercial, and industrial developments. The Municipal Code requires that fees that are not committed to a specific project within five (5) years from the date of actual receipt by the City shall be returned to the then-current owner of the development project. In order to ensure all funds are fully utilized, the goal of the Cultural Arts Division is to fund numerous public art projects. Newly installed public art projects were funded in part by the Public Art Trust Fund. Popular special events include Concerts in the Park, Holiday Fireworks, volleyball, tennis, and pickleball tournaments, art exhibitions, Family Campout, Pumpkin Race, and more. Satisfaction with services (derived from the statistically-valid biennial Community Opinion Survey) allows the City to explore whether special events meet community expectations. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 166 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 167 DEPARTMENT EXPENDITURES BY PROGRAM Parks and Rec Admin (33.1%)Parks and Rec Admin (33.1%)Parks and Rec Admin (33.1%) Recreation Services (25.9%)Recreation Services (25.9%)Recreation Services (25.9%) Sports & Aquatics (16.5%)Sports & Aquatics (16.5%)Sports & Aquatics (16.5%) Transportation (10.3%)Transportation (10.3%)Transportation (10.3%) Cultural Arts (8.2%)Cultural Arts (8.2%)Cultural Arts (8.2%) Older Adults (4.8%)Older Adults (4.8%)Older Adults (4.8%) Volunteers (1.2%)Volunteers (1.2%)Volunteers (1.2%) Expenditures Parks and Recreation Parks and Rec Admin $5,443,275 $3,342,757 $3,453,829 $4,511,080 $1,168,323 35% Total Parks and Rec Admin:$5,443,275 $3,342,757 $3,453,829 $4,511,080 $1,168,323 35% Recreation Services Recreation Services $1,678,072 $1,663,683 $1,907,202 $1,951,548 $287,865 17.3% Teen Drop In Center $164,957 $206,453 $168,511 $209,814 $3,361 1.6% Enrichment *$235,912 $255,498 $250,320 $263,951 $8,453 3.3% Youth & Teen Programs *$672,046 $636,396 $649,330 $647,797 $11,401 1.8% Fac & Park Reservations *$488,003 $533,776 $569,308 $453,803 -$79,973 -15% Total Recreation Services:$3,238,990 $3,295,806 $3,544,671 $3,526,913 $231,107 7% Cultural Arts Cultural Arts $485,085 $479,535 $417,227 $516,682 $37,147 7.7% Art Classes *$304,590 $407,731 $376,170 $471,490 $63,759 15.6% Concerts In The Park *$107,428 $128,807 $109,890 $134,875 $6,068 4.7% Total Cultural Arts:$897,103 $1,016,073 $903,287 $1,123,047 $106,974 10.5% Sports & Aquatics Sports Leagues & Tournaments *$236,175 $220,361 $229,551 $229,918 $9,557 4.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 168 Sports Classes *$515,602 $482,363 $486,649 $483,243 $880 0.2% Swimming Activities *$663,832 $719,683 $663,094 $759,074 $39,391 5.5% Tennis Operations *$826,830 $790,765 $767,211 $780,139 -$10,626 -1.3% Total Sports & Aquatics:$2,242,439 $2,213,172 $2,146,505 $2,252,374 $39,202 1.8% Volunteers $211,993 $147,712 $160,068 $162,185 $14,473 9.8% Total Volunteers:$211,993 $147,712 $160,068 $162,185 $14,473 9.8% Older Adults Older Adult Activities*$102,508 $162,203 $152,903 $172,373 $10,170 6.3% Senior Services $273,603 $440,052 $385,887 $486,670 $46,618 10.6% Total Older Adults:$376,111 $602,255 $538,790 $659,043 $56,788 9.4% Transportation $704,295 $769,417 $685,030 $1,405,927 $636,510 82.7% Total Transportation:$704,295 $769,417 $685,030 $1,405,927 $636,510 82.7% Total Parks and Recreation:$13,114,205 $11,387,192 $11,432,180 $13,640,569 $2,253,377 19.8% Total Expenditures:$13,114,205 $11,387,192 $11,432,180 $13,640,569 $2,253,377 19.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change *Revenue generating programs. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 169 SCHEDULE OF EXPENDITURE DETAIL Salaries & Benefits (41.7%)Salaries & Benefits (41.7%)Salaries & Benefits (41.7%) Materials & Services (31.7%)Materials & Services (31.7%)Materials & Services (31.7%) Internal Services Charge (18.3%)Internal Services Charge (18.3%)Internal Services Charge (18.3%) Debt Service (4.6%)Debt Service (4.6%)Debt Service (4.6%) Capital Projects & Equipment (3.7%)Capital Projects & Equipment (3.7%)Capital Projects & Equipment (3.7%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,956,238 $2,019,574 $2,090,636 $2,190,178 $170,604 8.4% 51103-Part Time Employee Salaries $2,138,535 $2,361,935 $2,117,272 $2,392,801 $30,866 1.3% 51104-Overtime Regular Employees $16,524 $27,532 $23,882 $25,220 -$2,312 -8.4% 51201-Group Medical Insurance $374,666 $389,893 $421,012 $417,055 $27,162 7% 51202-Medicare $58,941 $63,353 $70,857 $66,445 $3,092 4.9% 51203-Medical Retirement Contrs $0 $0 $0 $4,448 $4,448 N/A 51204-401A Plan City $41,094 $40,340 $43,156 $43,144 $2,804 7% 51205-Contributions to City Pension $11,766 $12,362 $12,362 $12,758 $396 3.2% 51211-PERS Regular Contributions $307,205 $282,800 $301,939 $314,546 $31,746 11.2% 51213-PERS Regular Net Pension Liab $0 $48,888 $53,992 $88,907 $40,019 81.9% 51231-Unemployment $46,800 $46,816 $46,816 $46,816 $0 0% 51232-Workers Compensation $88,620 $78,300 $78,300 $82,020 $3,720 4.8% Total Salaries & Benefits:$5,040,390 $5,371,793 $5,260,224 $5,684,338 $312,545 5.8% Materials & Services 52101-Contract Services $2,822,253 $2,945,022 $2,899,626 $2,122,417 -$822,605 -27.9% 52103-Software Purchases and Subscriptions $32,988 $131,866 $53,366 $45,681 -$86,185 -65.4% 52201-Departmental Supplies $467,884 $489,769 $515,200 $465,249 -$24,520 -5% 52202-Office Supplies $7,564 $11,400 $11,000 $11,400 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 170 52203-Printing $28,908 $42,600 $44,650 $37,300 -$5,300 -12.4% 52204-Postage $28,544 $20,119 $27,800 $10,000 -$10,119 -50.3% 52205-Uniforms/Safety Equipment $20,956 $14,500 $14,000 $14,700 $200 1.4% 52206-Advertising $37,295 $47,800 $30,188 $46,800 -$1,000 -2.1% 52301-Training, Conf & Meetings $37,185 $68,704 $55,600 $52,504 -$16,200 -23.6% 52304-Employee Awards & Events $750 $0 $1,116 $0 $0 0% 52305-Recruitment Costs $6,197 $3,000 $5,000 $4,000 $1,000 33.3% 52307-Memberships & Dues $8,720 $11,570 $9,125 $8,230 -$3,340 -28.9% 52308-Reference Books & Periodicals $1,630 $2,100 $1,900 $2,100 $0 0% 52501-Bus Pass Subsidies $1,935 $4,000 $2,500 $4,000 $0 0% 52502-Recreation Bus Trips $47,997 $59,225 $59,225 $59,225 $0 0% 52705-Service Agency Contributions $37,315 $45,526 $45,526 $46,892 $1,366 3% 52801-Computers, Supplies & Software $738 $1,202 $80,100 $3,532 $2,330 193.8% 53101-Telephone $9,164 $10,217 $9,595 $9,739 -$478 -4.7% 53102-Electricity $297,811 $218,988 $375,000 $372,191 $153,203 70% 53103-Natural Gas $11,941 $14,777 $14,000 $14,210 -$567 -3.8% 53105 Postage Allocation $0 $0 $0 $20,866 $20,866 N/A 52803-Leased Property & Equipment $0 $0 $0 $976,482 $976,482 N/A Total Materials & Services:$3,907,775 $4,142,385 $4,254,517 $4,327,518 $185,133 4.5% Internal Services Charge 54102-Warehouse Purchases $6,233 $11,700 $8,080 $10,400 -$1,300 -11.1% 54104-Information Systems Allocation $705,492 $699,941 $699,941 $863,849 $163,908 23.4% 54105-Insurance Allocation $1,848,791 $113,400 $113,400 $1,262,760 $1,149,360 1,013.5% 54106-Fleet Rental Allocation $22,944 $17,380 $17,380 $21,920 $4,540 26.1% 54107-Fleet Maintenance Allocation $90,371 $111,828 $111,828 $96,710 -$15,118 -13.5% 54108-Building & Ops Allocation $228,309 $224,173 $224,173 $246,582 $22,409 10% Total Internal Services Charge:$2,902,140 $1,178,422 $1,174,802 $2,502,221 $1,323,799 112.3% Capital Projects & Equipment 61301-Machinery $0 $0 $36,624 $0 $0 0% 61401-Vehicles $0 $0 $0 $500,000 $500,000 N/A 62202-Landscape & Site Improvements $562,100 $0 $2,359 $0 $0 0% Total Capital Projects & Equipment:$562,100 $0 $38,983 $500,000 $500,000 N/A Debt Service 71101-Bond Principal $345,000 $360,000 $360,000 $370,000 $10,000 2.8% 71102-Bond Interest $130,000 $115,900 $115,900 $101,300 -$14,600 -12.6% 71103-Bond Administration Fee $1,600 $1,600 $1,600 $1,600 $0 0% 71107-POB Miscellaneous Principal $141,403 $137,439 $142,702 $98,235 -$39,204 -28.5% 71108-POB Miscellaneous Interest $83,796 $79,653 $83,452 $55,357 -$24,296 -30.5% Total Debt Service:$701,799 $694,592 $703,654 $626,492 -$68,100 -9.8% Total Expense Objects:$13,114,205 $11,387,192 $11,432,180 $13,640,569 $2,253,377 19.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 171 SOURCE OF FUNDS General Fund $11,847,810 $10,575,180 $10,697,242 $12,157,179 $1,581,999 15% Prop. A Fund $704,295 $769,417 $685,030 $1,405,927 $636,510 82.7% Capital Improvement Fund $562,100 $0 $2,359 $0 $0 0% Section 115 Trust Fund $0 $42,595 $47,549 $77,463 $34,868 81.9% Total:$13,114,205 $11,387,192 $11,432,180 $13,640,569 $2,253,377 19.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 172 PARKS & RECREATION ADMINISTRATION PROGRAM OVERVIEW The Administration Division oversees all operating functions of the Department including administration of capital improvement projects; coordination of the Parks & Recreation Commission, Library Commission, Cultural Arts Commission, and ad-hoc committees; budget development; film permits, activity registration and facility reservations, department marketing and coordination of Citywide community events. This division provides vision, direction, and support resources to Department staff. OBJECTIVES FY 2026 Implement Strategic Plan objectives within the established timelines. Strategic Plan priorities include enhancing recreation facilities, expanding programs, and developing employees in order to create community and enhance the quality of life for residents through people, parks, and play. Collaborate with LA County Library to explore the feasibility of a cultural library in East Manhattan Beach. Update the 2020 Parks Master Plan to prioritize immediate, short-term, and long-term projects for upgrading parks and recreational facilities in Manhattan Beach. Support the City’s efforts to enhance communications and increase engagement through the department social media platforms. Coordinate with special event operators to provide safe community events. Promote recreational and social opportunities serving the population ranging from infants to older adults. Provide excellent customer service for all registrations and reservations. Evaluate the courts reservation system pilot program to determine possible expansion to other areas of the registration and reservation system. Increase the number of online registrations for maximum staff efficiency and customer ease. Work with LoveMB - a 501(c)(3) - to enhance donation opportunities for the community. MAJOR SERVICE DELIVERY CHANGES A new racquet sports court reservation system was implemented in April 2025 and will be evaluated with the goal to migrate to a new platform providing a more streamlined and user-friendly registration and reservation process. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Analyst 1.00 1.00 1.00 Administrative Assistant 0.50 0.50 0.50 Marketing Specialist 1.00 1.00 1.00 Parks & Recreation Director 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 4.50 4.50 4.50 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 173 Internal Services Charge (40.4%)Internal Services Charge (40.4%)Internal Services Charge (40.4%) Materials & Services (25.2%)Materials & Services (25.2%)Materials & Services (25.2%) Salaries & Benefits (20.8%)Salaries & Benefits (20.8%)Salaries & Benefits (20.8%) Debt Service (13.7%)Debt Service (13.7%)Debt Service (13.7%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $468,013 $501,484 $501,228 $531,003 $29,519 5.9% 51103-Part Time Employee Salaries $0 $415 $0 $0 -$415 -100% 51104-Overtime Regular Employees $178 $500 $250 $300 -$200 -40% 51201-Group Medical Insurance $96,385 $98,817 $114,005 $112,859 $14,042 14.2% 51202-Medicare $6,541 $7,279 $7,296 $7,707 $428 5.9% 51203-Medical Retirement Contrs $0 $0 $0 $4,448 $4,448 N/A 51204-401A Plan City $13,844 $13,427 $14,986 $13,998 $571 4.3% 51205-Contributions to City Pension $11,766 $12,362 $12,362 $12,758 $396 3.2% 51211-PERS Regular Contributions $45,227 $48,057 $46,125 $49,914 $1,857 3.9% 51213-PERS Regular Net Pension Liab $0 $42,595 $47,549 $77,463 $34,868 81.9% 51231-Unemployment $46,800 $46,816 $46,816 $46,816 $0 0% 51232-Workers Compensation $88,620 $78,300 $78,300 $82,020 $3,720 4.8% Total Salaries & Benefits:$777,374 $850,052 $868,917 $939,286 $89,234 10.5% Materials & Services 52101-Contract Services $954,420 $988,093 $1,062,000 $13,628 -$974,465 -98.6% 52103-Software Purchases and Subscriptions $0 $100,000 $20,000 $12,000 -$88,000 -88% 52201-Departmental Supplies $14,051 $14,480 $20,000 $13,780 -$700 -4.8% 52202-Office Supplies $7,564 $11,400 $11,000 $11,400 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 174 EXPENDITURES BY TYPE 52203-Printing $25,413 $34,200 $38,000 $28,900 -$5,300 -15.5% 52204-Postage $27,378 $19,000 $27,000 $10,000 -$9,000 -47.4% 52206-Advertising $17,320 $20,700 $17,000 $20,700 $0 0% 52301-Training, Conf & Meetings $10,226 $19,150 $15,000 $16,450 -$2,700 -14.1% 52304-Employee Awards & Events $750 $0 $1,116 $0 $0 0% 52305-Recruitment Costs $6,197 $3,000 $5,000 $4,000 $1,000 33.3% 52307-Memberships & Dues $2,520 $3,490 $2,600 $2,750 -$740 -21.2% 52308-Reference Books & Periodicals $17 $700 $300 $700 $0 0% 52801-Computers, Supplies & Software $738 $806 $80,000 $3,136 $2,330 289.1% 53101-Telephone $1,279 $1,401 $1,250 $1,269 -$132 -9.4% 53105 Postage Allocation $0 $0 $0 $19,705 $19,705 N/A 52803-Leased Property & Equipment $0 $0 $0 $976,482 $976,482 N/A Total Materials & Services:$1,067,874 $1,216,420 $1,300,266 $1,134,900 -$81,520 -6.7% Internal Services Charge 54102-Warehouse Purchases $848 $1,500 $700 $1,500 $0 0% 54104-Information Systems Allocation $224,472 $199,451 $199,451 $247,811 $48,360 24.2% 54105-Insurance Allocation $1,848,791 $113,400 $113,400 $1,262,760 $1,149,360 1,013.5% 54106-Fleet Rental Allocation $20,400 $14,840 $14,840 $20,120 $5,280 35.6% 54107-Fleet Maintenance Allocation $41,222 $56,112 $56,112 $42,216 -$13,896 -24.8% 54108-Building & Ops Allocation $228,309 $224,173 $224,173 $246,582 $22,409 10% Total Internal Services Charge:$2,364,041 $609,476 $608,676 $1,820,989 $1,211,513 198.8% Capital Projects & Equipment 62202-Landscape & Site Improvements $562,100 $0 $2,359 $0 $0 0% Total Capital Projects & Equipment:$562,100 $0 $2,359 $0 $0 0% Debt Service 71101-Bond Principal $345,000 $360,000 $360,000 $370,000 $10,000 2.8% 71102-Bond Interest $130,000 $115,900 $115,900 $101,300 -$14,600 -12.6% 71103-Bond Administration Fee $1,600 $1,600 $1,600 $1,600 $0 0% 71107-POB Miscellaneous Principal $122,619 $119,850 $123,745 $91,464 -$28,386 -23.7% 71108-POB Miscellaneous Interest $72,665 $69,459 $72,366 $51,541 -$17,918 -25.8% Total Debt Service:$671,884 $666,809 $673,611 $615,905 -$50,904 -7.6% Total Expense Objects:$5,443,275 $3,342,757 $3,453,829 $4,511,080 $1,168,323 35% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $4,881,174 $3,300,162 $3,403,921 $4,433,617 $1,133,455 34.3% Capital Improvement Fund $562,100 $0 $2,359 $0 $0 0% Section 115 Trust Fund $0 $42,595 $47,549 $77,463 $34,868 81.9% Total:$5,443,275 $3,342,757 $3,453,829 $4,511,080 $1,168,323 35% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 175 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 176 RECREATION SERVICES PROGRAM OVERVIEW The Recreation Services Division oversees a variety of large, community-wide special events, facility and park reservations and operations, reservations and classes, enrichment classes, nature and outdoor recreation activities, youth and teen afterschool programs and summer camps. The Recreation Services Division strives to provide a wide range of recreational opportunities through safe and clean parks, facilities, fields, and programs that provide positive physical, social, environmental, and economic benefits to the community. OBJECTIVES FY 2026 Maintain high customer satisfaction ratings for youth enrichment classes, camps, and Afterschool REC and Teen Center programs. Install pour in place playground surfacing at Marine Avenue Park and upper Polliwog Park. Replace fencing at Marine Avenue Park Soccer Field. MAJOR SERVICE DELIVERY CHANGES Over 100 one-week summer camps were offered in 2024, an 88% increase compared to 2023. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 0.50 0.50 0.50 Recreation Coordinator -1.00 1.00 Recreation Supervisor 3.08 2.99 2.96 Senior Recreation Manager 1.00 1.00 1.00 Senior Recreation Supervisor 1.25 1.42 1.17 5.83 6.91 6.63 43,925 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 177 Salaries & Benefits (55.6%)Salaries & Benefits (55.6%)Salaries & Benefits (55.6%) Materials & Services (35.1%)Materials & Services (35.1%)Materials & Services (35.1%) Internal Services Charge (9.3%)Internal Services Charge (9.3%)Internal Services Charge (9.3%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $654,670 $678,245 $755,520 $701,450 $23,205 3.4% 51103-Part Time Employee Salaries $991,520 $963,201 $962,253 $975,774 $12,573 1.3% 51104-Overtime Regular Employees $9,300 $13,604 $12,004 $11,902 -$1,702 -12.5% 51201-Group Medical Insurance $115,503 $131,284 $138,598 $128,439 -$2,845 -2.2% 51202-Medicare $23,852 $23,620 $27,809 $24,218 $598 2.5% 51204-401A Plan City $14,410 $14,221 $15,840 $13,816 -$405 -2.8% 51211-PERS Regular Contributions $128,525 $101,957 $133,265 $105,340 $3,383 3.3% Total Salaries & Benefits:$1,937,780 $1,926,132 $2,045,289 $1,960,939 $34,807 1.8% Materials & Services 52101-Contract Services $553,299 $616,271 $587,271 $642,196 $25,925 4.2% 52201-Departmental Supplies $159,948 $197,200 $209,000 $172,700 -$24,500 -12.4% 52203-Printing $830 $1,000 $1,000 $1,000 $0 0% 52205-Uniforms/Safety Equipment $11,743 $8,000 $8,000 $8,200 $200 2.5% 52206-Advertising $6,308 $7,500 $3,000 $7,000 -$500 -6.7% 52301-Training, Conf & Meetings $14,560 $18,100 $15,100 $10,100 -$8,000 -44.2% 52307-Memberships & Dues $890 $1,700 $1,645 $1,700 $0 0% 53101-Telephone $6,498 $7,197 $6,925 $7,029 -$168 -2.3% 53102-Electricity $297,811 $218,988 $375,000 $372,191 $153,203 70% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 178 EXPENDITURES BY TYPE 53103-Natural Gas $11,941 $14,777 $14,000 $14,210 -$567 -3.8% Total Materials & Services:$1,063,828 $1,090,733 $1,220,941 $1,236,326 $145,593 13.3% Internal Services Charge 54102-Warehouse Purchases $1,927 $3,200 $2,700 $3,100 -$100 -3.1% 54104-Information Systems Allocation $229,740 $268,885 $268,885 $320,526 $51,641 19.2% 54106-Fleet Rental Allocation $2,544 $2,540 $2,540 $1,800 -$740 -29.1% 54107-Fleet Maintenance Allocation $3,171 $4,316 $4,316 $4,222 -$94 -2.2% Total Internal Services Charge:$237,382 $278,941 $278,441 $329,648 $50,707 18.2% Total Expense Objects:$3,238,990 $3,295,806 $3,544,671 $3,526,913 $231,107 7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $3,238,990 $3,295,806 $3,544,671 $3,526,913 $231,107 7% Total General Fund:$3,238,990 $3,295,806 $3,544,671 $3,526,913 $231,107 7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 179 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 180 SPORTS & AQUATICS PROGRAM OVERVIEW The Sports & Aquatics Division’s goal is to promote health and wellness throughout the community by providing and managing a variety of recreational athletic facilities, youth and adult sports leagues, fitness classes, aquatics programs, tennis and pickleball opportunities, sports camps/clinics, special events and tournaments. The Division manages a comprehensive aquatics program at Begg Pool, coordinates swim classes and water safety programs for all ages and abilities, and schedules use and special events for local, state, and national organizations. The division manages sport field allocations in collaboration with local youth sport organizations. OBJECTIVES FY 2026 Maintain highly favorable ratings for swim programs, fitness classes, and sport leagues. Maintain division revenues at a minimum of 70% of operating expenditures. Complete priority maintenance projects for Begg Pool. Replace the Pay N Play Facility at Marine Avenue Park. MAJOR SERVICE DELIVERY CHANGES All Live Oak and Manhattan Heights tennis courts have been resurfaced. During resurfacing at Manhattan Heights, Pickleball lines were added to Court 2, similar to Court 1, in order to accommodate both pickleball and tennis. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Recreation Supervisor 1.88 1.96 1.97 Senior Recreation Supervisor 0.75 0.83 0.83 2.63 2.79 2.80 30,333 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 181 Materials & Services (51.6%)Materials & Services (51.6%)Materials & Services (51.6%) Salaries & Benefits (47.9%)Salaries & Benefits (47.9%)Salaries & Benefits (47.9%) Internal Services Charge (0.5%)Internal Services Charge (0.5%)Internal Services Charge (0.5%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $261,137 $259,085 $285,536 $284,369 $25,284 9.8% 51103-Part Time Employee Salaries $658,389 $670,509 $628,660 $680,778 $10,269 1.5% 51104-Overtime Regular Employees $2,850 $6,500 $4,865 $6,000 -$500 -7.7% 51201-Group Medical Insurance $50,292 $49,846 $54,866 $53,008 $3,162 6.3% 51202-Medicare $13,327 $13,474 $15,336 $14,006 $532 3.9% 51204-401A Plan City $3,858 $4,004 $4,475 $4,334 $330 8.2% 51211-PERS Regular Contributions $51,509 $38,432 $48,001 $37,023 -$1,409 -3.7% Total Salaries & Benefits:$1,041,362 $1,041,850 $1,041,739 $1,079,518 $37,668 3.6% Materials & Services 52101-Contract Services $987,660 $988,133 $922,938 $995,531 $7,398 0.7% 52103-Software Purchases and Subscriptions $1,289 $0 $1,500 $1,500 $1,500 N/A 52201-Departmental Supplies $179,342 $150,000 $155,000 $148,000 -$2,000 -1.3% 52203-Printing $1,100 $1,500 $1,500 $1,500 $0 0% 52205-Uniforms/Safety Equipment $5,840 $3,000 $3,000 $3,000 $0 0% 52206-Advertising $1,380 $2,500 $1,788 $2,500 $0 0% 52301-Training, Conf & Meetings $11,818 $10,000 $5,000 $7,000 -$3,000 -30% 52307-Memberships & Dues $2,870 $3,000 $1,500 $2,100 -$900 -30% 53101-Telephone $299 $409 $260 $263 -$146 -35.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 182 EXPENDITURES BY TYPE Total Materials & Services:$1,191,599 $1,158,542 $1,092,486 $1,161,394 $2,852 0.2% Internal Services Charge 54102-Warehouse Purchases $629 $1,000 $500 $300 -$700 -70% 54104-Information Systems Allocation $3,960 $5,126 $5,126 $4,654 -$472 -9.2% 54107-Fleet Maintenance Allocation $4,888 $6,654 $6,654 $6,508 -$146 -2.2% Total Internal Services Charge:$9,478 $12,780 $12,280 $11,462 -$1,318 -10.3% Total Expense Objects:$2,242,439 $2,213,172 $2,146,505 $2,252,374 $39,202 1.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $2,242,439 $2,213,172 $2,146,505 $2,252,374 $39,202 1.8% Total General Fund:$2,242,439 $2,213,172 $2,146,505 $2,252,374 $39,202 1.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 183 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 184 CULTURAL ARTS PROGRAM OVERVIEW The Cultural Arts Division develops and presents art and education programs and exhibitions that directly relate to the contemporary life of the Manhattan Beach community, while maintaining the highest standards of professional, intellectual, and ethical responsibility. It seeks to create connections among artists, cultural organizations, community groups, businesses, visitors, and residents that sustain and promote a thriving, diverse, and creative city. This mission is grounded in a belief that learning about the arts is integral to human development and continual personal growth. OBJECTIVES FY 2026 Expand Glaze Lab offerings beyond weekends at MBAC to include special events, group off-sites, and birthday parties. Additionally, extend Glaze Lab hours on Wednesday and Thursday nights until 9 PM. Collaborate with the Historical Society and Public Works to undergo necessary renovations to the Red House, and aid in the curation of exhibitions. Offer ceramics-related workshops at MBAC. Workshops to include: kids' ceramics camps on the patio, specialized workshops, jewelry classes, and multi-week specialized Raku classes. Schedule weekly, staff led, gallery tours for the public during each exhibition. Utilize exhibiting artists at MBAC to lead specialized workshops that relate to their exhibition. Complete RFQ process for Bruce’s Beach artwork and present finalists to City Council. Adopt a new model for stewarding public art installation projects, to include a team comprised of representatives from Engineering, Public Works, and Community Development. Align with public art industry standards by adopting an RFQ process rather than an RFP model for public art projects. Complete first round of maintenance plan for public art works. Partner with LA County to have digitized Historical Collection hosted on LA County website. MAJOR SERVICE DELIVERY CHANGES Renovations at the Live Oak Ceramics Studio, including the installation of a new gas kiln, will increase capacity and student involvement at Live Oak Ceramics, allowing concurrent classes at the ceramics studio due to the new shade structure. As a result, additional ceramics classes are being added. The FY 2026 Budget includes one Senior Recreation Supervisor instead of a Cultural Arts Manager, right sizing the role for the current organizational structure. External digital storage will be purchased to house the Historical Collection while staff works with the LA County Library to facilitate access to the files for the public. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Cultural Arts Manager 1.00 1.00 - Recreation Coordinator 1.00 1.00 1.00 Recreation Supervisor 1.02 1.02 1.03 Senior Recreation Supervisor --1.00 3.02 3.02 3.03 10,989 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 185 Salaries & Benefits (55.3%)Salaries & Benefits (55.3%)Salaries & Benefits (55.3%)Materials & Services (33.5%)Materials & Services (33.5%)Materials & Services (33.5%) Internal Services Charge (11.2%)Internal Services Charge (11.2%)Internal Services Charge (11.2%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $237,496 $254,359 $222,169 $290,139 $35,780 14.1% 51103-Part Time Employee Salaries $146,040 $240,802 $170,359 $240,877 $75 0% 51104-Overtime Regular Employees $404 $200 $3,443 $200 $0 0% 51201-Group Medical Insurance $46,356 $52,060 $37,718 $32,454 -$19,606 -37.7% 51202-Medicare $5,498 $7,185 $4,427 $7,770 $585 8.1% 51204-401A Plan City $3,795 $4,839 $3,577 $5,503 $664 13.7% 51211-PERS Regular Contributions $26,091 $33,111 $23,292 $44,357 $11,246 34% Total Salaries & Benefits:$465,680 $592,556 $464,985 $621,300 $28,744 4.9% Materials & Services 52101-Contract Services $226,063 $237,940 $224,421 $296,340 $58,400 24.5% 52201-Departmental Supplies $56,644 $65,320 $60,200 $63,320 -$2,000 -3.1% 52203-Printing $1,054 $4,000 $3,000 $4,000 $0 0% 52205-Uniforms/Safety Equipment $0 $500 $0 $500 $0 0% 52206-Advertising $4,336 $6,100 $4,400 $5,600 -$500 -8.2% 52301-Training, Conf & Meetings $580 $7,500 $7,500 $6,000 -$1,500 -20% 52307-Memberships & Dues $295 $500 $500 $500 $0 0% Total Materials & Services:$288,971 $321,860 $300,021 $376,260 $54,400 16.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 186 EXPENDITURES BY TYPE Internal Services Charge 54102-Warehouse Purchases $564 $1,000 $1,000 $1,000 $0 0% 54104-Information Systems Allocation $141,888 $100,657 $100,657 $124,487 $23,830 23.7% Total Internal Services Charge:$142,452 $101,657 $101,657 $125,487 $23,830 23.4% Capital Projects & Equipment 61301-Machinery $0 $0 $36,624 $0 $0 0% Total Capital Projects & Equipment:$0 $0 $36,624 $0 $0 0% Total Expense Objects:$897,103 $1,016,073 $903,287 $1,123,047 $106,974 10.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $897,103 $1,016,073 $903,287 $1,123,047 $106,974 10.5% Total General Fund:$897,103 $1,016,073 $903,287 $1,123,047 $106,974 10.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 187 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 188 OLDER ADULTS PROGRAM OVERVIEW The Older Adults Program is part of the Community Programs Division and provides older adults a variety of quality programs in the areas of health and fitness, arts and crafts, outdoor activities, drama, literature, movies, creative writing, educational programs, excursions, discussion groups, luncheons, table games, and dance. A large focus of the program continues to include intergenerational programs and collaborations. OBJECTIVES FY 2026 Expand class offerings and provide two classes at Adventureplex. Continue to create programs to meet the needs of the older adult population. Continue to establish relationships with older adult service providers and expand the network by seeking additional contacts. Continue to engage the older adults with social, health, and educational programs offered through virtual platforms and in person. Expand the volunteer program at Joslyn Center with the addition of new instructors. Solicit input via surveys collected from Older Adults and measure/maintain a high degree of satisfaction among participants. MAJOR SERVICE DELIVERY CHANGES Added two new part-time senior recreation leaders in March 2025 to provide additional assistance for the older adult program and provide class registration at the Joslyn Center for participants. The Older Adult program has grown by 30% since 2024. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Recreation Coordinator 1.00 -- Recreation Supervisor 1.02 1.03 1.04 Senior Recreation Supervisor -0.50 0.50 2.02 1.53 1.54 7,447 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 189 Salaries & Benefits (60.3%)Salaries & Benefits (60.3%)Salaries & Benefits (60.3%) Materials & Services (29.7%)Materials & Services (29.7%)Materials & Services (29.7%) Internal Services Charge (10%)Internal Services Charge (10%)Internal Services Charge (10%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $85,105 $146,789 $163,622 $154,982 $8,193 5.6% 51103-Part Time Employee Salaries $60,226 $169,263 $68,000 $172,872 $3,609 2.1% 51104-Overtime Regular Employees $296 $700 $320 $700 $0 0% 51201-Group Medical Insurance $8,122 $14,139 $35,953 $34,739 $20,600 145.7% 51202-Medicare $2,076 $4,584 $2,886 $4,758 $174 3.8% 51204-401A Plan City $0 $2,566 $2,852 $2,710 $144 5.6% 51211-PERS Regular Contributions $7,726 $17,787 $15,110 $26,397 $8,610 48.4% Total Salaries & Benefits:$163,551 $355,828 $288,743 $397,158 $41,330 11.6% Materials & Services 52101-Contract Services $68,637 $76,036 $78,996 $76,036 $0 0% 52201-Departmental Supplies $57,175 $51,949 $61,000 $56,629 $4,680 9% 52203-Printing $510 $1,200 $1,000 $1,200 $0 0% 52206-Advertising $7,950 $11,000 $4,000 $11,000 $0 0% 52301-Training, Conf & Meetings $0 $3,775 $3,000 $2,775 -$1,000 -26.5% 52307-Memberships & Dues $1,195 $1,850 $1,850 $150 -$1,700 -91.9% 52308-Reference Books & Periodicals $1,614 $1,400 $1,600 $1,400 $0 0% 52705-Service Agency Contributions $37,315 $45,526 $45,526 $46,892 $1,366 3% 52801-Computers, Supplies & Software $0 $396 $100 $396 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 190 EXPENDITURES BY TYPE Total Materials & Services:$174,396 $193,132 $197,072 $196,478 $3,346 1.7% Internal Services Charge 54102-Warehouse Purchases $2,140 $2,500 $2,180 $2,000 -$500 -20% 54104-Information Systems Allocation $36,024 $50,795 $50,795 $63,407 $12,612 24.8% Total Internal Services Charge:$38,164 $53,295 $52,975 $65,407 $12,112 22.7% Total Expense Objects:$376,111 $602,255 $538,790 $659,043 $56,788 9.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $376,111 $602,255 $538,790 $659,043 $56,788 9.4% Total General Fund:$376,111 $602,255 $538,790 $659,043 $56,788 9.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 191 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 192 TRANSPORTATION PROGRAM OVERVIEW The Transportation Division is part of the Community Programs Division and is funded predominantly by Proposition "A" Local Return transportation funds. These monies, which are administered by the Los Angeles Metropolitan Transportation Authority (MTA), are generated by a one-half cent sales tax approved by the voters for use in transportation related services. These services include the Dial-A-Ride program, bus pass subsidies, recreational bus trips for all ages, and fixed-route bus service provided by the Beach Cities Transit. Dial-A-Ride transports customers to a variety of locations throughout the city including shopping centers, community centers, and medical facilities, as well as to designated medical facilities in neighboring communities. Fares are $0.25 one-way within the City and $0.50 one-way outside the City. OBJECTIVES FY 2026 Explore different opportunities for new and innovative employee trainings. Continue to offer Dial-A-Ride service to destinations in Manhattan Beach, as well as to select medical facilities outside of the city. Collaborate with senior housing facilities and MBUSD Special Education programs to provide effective transportation options as needed. Provide driver and dispatch training to improve efficiency and safety, and maintain a high- level of customer satisfaction. Reinstitute after-hours events and monthly local bus trips. Increase ridership. MAJOR SERVICE DELIVERY CHANGES The City will contract with Lyft to provide Older Adult transportation to medical appointments in El Segundo by July 2025. This would include four free roundtrip rides to medical offices in El Segundo and will be booked through the Dial-A-Ride office. A new 18 seat bus will be added to the fleet allowing Dial-A-Ride to better accommodate larger groups for excursions and transport. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Recreation Supervisor 1.00 0.50 0.50 Senior Recreation Supervisor --0.25 Transportation Services Operator 1.00 1.00 1.00 2.00 1.50 1.75 10,368 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 193 Salaries & Benefits (40.5%)Salaries & Benefits (40.5%)Salaries & Benefits (40.5%) Capital Projects & Equipment (35.6%)Capital Projects & Equipment (35.6%)Capital Projects & Equipment (35.6%) Materials & Services (14.7%)Materials & Services (14.7%)Materials & Services (14.7%) Internal Services Charge (8.4%)Internal Services Charge (8.4%)Internal Services Charge (8.4%) Debt Service (0.8%)Debt Service (0.8%)Debt Service (0.8%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $133,782 $108,704 $82,530 $150,295 $41,591 38.3% 51103-Part Time Employee Salaries $282,359 $306,970 $275,000 $311,563 $4,593 1.5% 51104-Overtime Regular Employees $3,495 $6,028 $3,000 $6,118 $90 1.5% 51201-Group Medical Insurance $33,786 $27,528 $22,225 $38,395 $10,867 39.5% 51202-Medicare $5,983 $6,027 $11,967 $6,697 $670 11.1% 51204-401A Plan City $0 $0 $0 $1,428 $1,428 N/A 51211-PERS Regular Contributions $36,659 $36,554 $28,692 $44,090 $7,536 20.6% 51213-PERS Regular Net Pension Liab $0 $6,293 $6,443 $11,444 $5,151 81.9% Total Salaries & Benefits:$496,065 $498,104 $429,857 $570,030 $71,926 14.4% Materials & Services 52101-Contract Services $14,123 $25,763 $12,000 $85,900 $60,137 233.4% 52103-Software Purchases and Subscriptions $31,699 $31,866 $31,866 $32,181 $315 1% 52201-Departmental Supplies $724 $8,570 $8,000 $8,570 $0 0% 52203-Printing $0 $700 $150 $700 $0 0% 52204-Postage $1,166 $1,119 $800 $0 -$1,119 -100% 52205-Uniforms/Safety Equipment $3,373 $3,000 $3,000 $3,000 $0 0% 52301-Training, Conf & Meetings $0 $10,179 $10,000 $10,179 $0 0% 52307-Memberships & Dues $800 $880 $880 $880 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 194 EXPENDITURES BY TYPE 52501-Bus Pass Subsidies $1,935 $4,000 $2,500 $4,000 $0 0% 52502-Recreation Bus Trips $47,997 $59,225 $59,225 $59,225 $0 0% 53101-Telephone $1,023 $1,119 $1,100 $1,117 -$2 -0.2% 53105 Postage Allocation $0 $0 $0 $1,161 $1,161 N/A Total Materials & Services:$102,841 $146,421 $129,521 $206,913 $60,492 41.3% Internal Services Charge 54102-Warehouse Purchases $125 $2,500 $1,000 $2,500 $0 0% 54104-Information Systems Allocation $34,260 $49,863 $49,863 $72,133 $22,270 44.7% 54107-Fleet Maintenance Allocation $41,090 $44,746 $44,746 $43,764 -$982 -2.2% Total Internal Services Charge:$75,474 $97,109 $95,609 $118,397 $21,288 21.9% Capital Projects & Equipment 61401-Vehicles $0 $0 $0 $500,000 $500,000 N/A Total Capital Projects & Equipment:$0 $0 $0 $500,000 $500,000 N/A Debt Service 71107-POB Miscellaneous Principal $18,784 $17,589 $18,957 $6,771 -$10,818 -61.5% 71108-POB Miscellaneous Interest $11,131 $10,194 $11,086 $3,816 -$6,378 -62.6% Total Debt Service:$29,915 $27,783 $30,043 $10,587 -$17,196 -61.9% Total Expense Objects:$704,295 $769,417 $685,030 $1,405,927 $636,510 82.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Prop. A Fund $704,295 $769,417 $685,030 $1,405,927 $636,510 82.7% Total Prop. A Fund:$704,295 $769,417 $685,030 $1,405,927 $636,510 82.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 195 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 196 VOLUNTEERS PROGRAM OVERVIEW The City's centrally coordinated volunteer program is part of the Community Programs Division and is designed to provide citizens with job skills, training, personal fulfillment, and opportunities to become more involved in municipal government. Volunteers offer support to various City departments. Positions include City Hall and Joslyn Community Center ambassadors, general clerical positions, Older Adult Program activity coordinators, teachers and clerical volunteers, special event positions, sports league coaches, and various positions within the Police and Fire Departments. OBJECTIVES FY 2026 Collaborate with schools and community groups to offer volunteer service opportunities and provide opportunities for people with developmental disabilities. Maintain diverse volunteer opportunities for older adults. Continue to coordinate with the Police Department to offer annual volunteer recognition event(s) for City volunteers. Meet the volunteer needs of City departments. Maintain the number of volunteer hours for increased savings to the City. Maintain strong relationship with community groups providing essential services to older adults. Provide Manhattan Beach and South Bay High School students with the opportunity to volunteer from home through the Grams for Seniors Program. Give an annual presentation at Mira Costa High School regarding volunteer opportunities. Maintain a current list of volunteers for events. MAJOR SERVICE DELIVERY CHANGES Created an online volunteer registration process for participants to sign up and find volunteer opportunities. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Recreation Supervisor -0.50 0.50 Senior Recreation Supervisor 1.00 0.25 0.25 1.00 0.75 0.75 416 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 197 Salaries & Benefits (71.6%)Salaries & Benefits (71.6%)Salaries & Benefits (71.6%) Internal Services Charge (19%)Internal Services Charge (19%)Internal Services Charge (19%) Materials & Services (9.4%)Materials & Services (9.4%)Materials & Services (9.4%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $116,036 $70,908 $80,031 $77,940 $7,032 9.9% 51103-Part Time Employee Salaries $0 $10,775 $13,000 $10,937 $162 1.5% 51201-Group Medical Insurance $24,222 $16,219 $17,647 $17,161 $942 5.8% 51202-Medicare $1,664 $1,184 $1,136 $1,289 $105 8.9% 51204-401A Plan City $5,187 $1,283 $1,426 $1,355 $72 5.6% 51211-PERS Regular Contributions $11,469 $6,902 $7,454 $7,425 $523 7.6% Total Salaries & Benefits:$158,578 $107,271 $120,694 $116,107 $8,836 8.2% Materials & Services 52101-Contract Services $18,050 $12,786 $12,000 $12,786 $0 0% 52201-Departmental Supplies $0 $2,250 $2,000 $2,250 $0 0% 52307-Memberships & Dues $150 $150 $150 $150 $0 0% 53101-Telephone $66 $91 $60 $61 -$30 -33% Total Materials & Services:$18,266 $15,277 $14,210 $15,247 -$30 -0.2% Internal Services Charge 54104-Information Systems Allocation $35,148 $25,164 $25,164 $30,831 $5,667 22.5% Total Internal Services Charge:$35,148 $25,164 $25,164 $30,831 $5,667 22.5% Total Expense Objects:$211,993 $147,712 $160,068 $162,185 $14,473 9.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 198 EXPENDITURES BY TYPE SOURCE OF FUNDS General Fund $211,993 $147,712 $160,068 $162,185 $14,473 9.8% Total General Fund:$211,993 $147,712 $160,068 $162,185 $14,473 9.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 199 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 200 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 202 MISSION To protect life, liberty, and property while providing excellent service and developing problem-solving partnerships within the community. DEPARTMENT OVERVIEW DEPARTMENT OVERVIEW The Manhattan Beach Police Department is a premier, full-service law enforcement organization. The dedicated men and women of this Police Department are an integral part of this community, and the community is an integral part of the Police Department. We count on each other to keep this community safe and to work on quality-of-life issues so that residents love living here, businesses thrive, and visitors enjoy their stay. The Police Department operates under two Bureaus - Administration/Investigations and Field Operations. The following budgetary programs comprise the Police Department: Administration (including Personnel and Training, Technical Support Services, Dispatch Services, Community Affairs, and Investigations) Patrol (including Jail Operations) Traffic Safety (including Parking Enforcement and Animal Control) Asset Forfeiture/Grants The Police Department's 2025-2028 Strategic Plan will take effect on July 1, 2025, and end on June 30, 2028. The plan is created through the participation of employees at all levels within the Police Department, and includes workshops, surveys, and meetings with sworn and civilian personnel representing every rank and Bureau. Community input was gathered through an interactive community workshop in March 2025. As a result of the workshops and planning sessions, three goals were identified: Within each of these goals are quantifiable objectives and action items, which outline how the Department will work to attain these goals. The men and women of the Manhattan Beach Police Department are proud to serve our community, and with this document as a guide, we will strive to achieve an even higher level of service. Collaboration and communication with our community is critical to public safety. The Police Department uses Everbridge (formerly Nixle) to provide information regarding critical incidents. Information is delivered via text and/or email message. The Police Department also utilizes social media to connect with our community, including Instagram, Facebook, Twitter, and YouTube. The partnership between the Police and the community, which includes the Neighborhood Watch program, epitomizes the best in community policing. MBPD has one of the most active Neighborhood Watch programs in the nation, with over 400 residents currently participating as Neighborhood Watch block captains, covering the majority of Manhattan Beach's four square miles. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 203 Goal 1: Internal Development Ensure that our employees have what they need to thrive in their jobs and provide the highest levels of police services to the Manhattan Beach community. Goal 2: Innovative Crime Fighting Tools & Strategies Continue to research and implement best-practice progressive policing tools and strategies that will continue to make Manhattan Beach a wonderful place in which to live and work. Goal 3: Community Engagement & Outreach Continue to invest in our community-police partnership to ensure the best possible service to the community.. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 204 RECENT ACCOMPLISHMENT HIGHLIGHTS Responded to over 16,700 calls for service Ramped up recruiting and hiring efforts to fill vacancies Enhanced community engagement through the Police Department’s Instagram and Facebook pages Completed the actions items outlined in the 2023-2024 Police Department Strategic Plan Continued to implement innovative crime-fighting, including enhanced/increased bike patrols, burglary suppression details, and undercover patrols Hosted events to promote community engagement, including Coffee with a Cop, Cupcakes with a Cop, Catalytic Converter Etching, Trunk or Treat, Community Police Academy, and Town Hall Meetings Donned pink uniform patches in October in honor of Breast Cancer Awareness Month Secured $75,000 in grant funds from the California Office of Traffic Safety to augment DUI and traffic enforcement efforts Increased Bicycle Patrol Team Deloyments CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 205 PERFORMANCE MEASURES % OF RESIDENTS WHO FEEL SAFE PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget N/A N/A 95%N/A REDUCTION OF VIOLENT CRIME INCIDENTS PRIOR YEAR TARGET FY 2023 CY 2024 CY 2025 CY 2026 Actual Actual Estimate Budget Up 3.5%Down 13%Down 3%Down 3% REDUCTION OF PROPERTY CRIME INCIDENTS PRIOR YEAR TARGET FY 2023 CY 2024 CY 2025 CY 2026 Actual Actual Estimate Budget Up 14%Down 15%Down 3%Down 3% PERCENTAGE OF NEW FOLLOWERS ON SOCIAL MEDIA PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget Up 20%Up 6%Up 5%Up 3% PERCENTAGE OF FILLED POSITIONS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 92%93%95%98% The City of Manhattan Beach places a high priority on residents feeling safe. The statistically-valid Community Opinion Survey allows the City to measure the community’s perception of safety in Manhattan Beach. The most recent study was conducted in FY 2022. City seeks to improve quality of life through the reduction of Violent Crimes (Murder, Rape, Assault, etc.), as defined by the Federal Bureau of Investigations National Incident Based Reporting System (NIBRS). This statistic is based on Calendar Years since MBPD transitioned fully to NIBRS. City seeks to improve quality of life through the reduction of Property Crimes (Burglary, Theft, Motor Vehicle Theft), as defined by the Federal Bureau of Investigations National Incident Based Reporting System (NIBRS). This statistic is based on Calendar Years since MBPD transitioned fully to NIBRS in 2023. The Police Department’s partnership with the community is our greatest asset. Social media is a way to connect and engage with our community. This statistic includes followers on Instagram, Facebook, and Twitter. The Police Department will continue to recruit and hire qualified individuals to fill Department full-time sworn and civilian vacancies to maintain at least 98% staffing (less than a 2% vacancy factor) in order. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 206 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 207 DEPARTMENT EXPENDITURES BY PROGRAM Police Admin (54.4%)Police Admin (54.4%)Police Admin (54.4%) Patrol (30.6%)Patrol (30.6%)Patrol (30.6%) Traffic Safety (14.1%)Traffic Safety (14.1%)Traffic Safety (14.1%) Asset Forfeitures (0.9%)Asset Forfeitures (0.9%)Asset Forfeitures (0.9%) Expenditures Police Police Admin Police Admin $10,545,287 $12,182,279 $12,392,431 $13,272,036 $1,089,757 8.9% Technical Support Services $1,885,343 $2,162,255 $2,029,550 $2,314,089 $151,834 7% Police Communications $1,522,333 $1,657,585 $1,657,475 $1,633,280 -$24,305 -1.5% Community Affairs $865,897 $1,234,164 $1,234,666 $1,461,556 $227,392 18.4% School Resource Officer $391,465 $435,089 $461,615 $457,747 $22,658 5.2% Police Investigations $2,975,781 $3,549,814 $3,352,689 $3,762,347 $212,533 6% Total Police Admin:$18,186,106 $21,221,186 $21,128,426 $22,901,055 $1,679,869 7.9% Patrol Patrol $11,882,748 $11,695,960 $12,302,644 $11,936,551 $240,591 2.1% Jail Operations $771,612 $870,196 $869,893 $951,543 $81,347 9.3% Total Patrol:$12,654,359 $12,566,156 $13,172,537 $12,888,094 $321,938 2.6% Traffic Safety Traffic Safety $2,910,316 $2,827,080 $2,646,723 $3,138,650 $311,570 11% Parking Enforcement $1,857,246 $2,175,013 $2,195,964 $2,265,743 $90,730 4.2% Animal Control $382,271 $346,757 $310,320 $521,394 $174,637 50.4% Total Traffic Safety:$5,149,833 $5,348,850 $5,153,007 $5,925,787 $576,937 10.8% Asset Forfeitures Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 208 Treasury Regional $0 $0 $24,502 $20,000 $20,000 N/A DOJ Regional $9,625 $48,000 $125,248 $118,000 $70,000 145.8% State Regional $44,976 $30,000 $29,000 $30,000 $0 0% State SLES Grant $103,313 $215,000 $195,000 $220,000 $5,000 2.3% Total Asset Forfeitures:$157,914 $293,000 $373,750 $388,000 $95,000 32.4% Total Police:$36,148,212 $39,429,192 $39,827,720 $42,102,936 $2,673,744 6.8% Total Expenditures:$36,148,212 $39,429,192 $39,827,720 $42,102,936 $2,673,744 6.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 209 SCHEDULE OF EXPENDITURE DETAIL Salaries & Benefits (65.8%)Salaries & Benefits (65.8%)Salaries & Benefits (65.8%) Internal Services Charge (14.3%)Internal Services Charge (14.3%)Internal Services Charge (14.3%) Materials & Services (12.3%)Materials & Services (12.3%)Materials & Services (12.3%) Debt Service (7.7%)Debt Service (7.7%)Debt Service (7.7%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $3,258,308 $3,565,931 $3,575,757 $3,770,581 $204,650 5.7% 51102-Sworn Employee Salaries $9,878,573 $10,485,019 $10,475,135 $11,276,868 $791,849 7.6% 51103-Part Time Employee Salaries $251,781 $356,280 $408,000 $396,050 $39,770 11.2% 51104-Overtime Regular Employees $321,382 $276,418 $298,000 $291,298 $14,880 5.4% 51105-Overtime Sworn Employees $2,730,250 $2,514,980 $2,761,000 $2,660,865 $145,885 5.8% 51107-Overtime Special Events $398,832 $462,500 $410,000 $450,500 -$12,000 -2.6% 51201-Group Medical Insurance $1,988,405 $2,019,463 $2,106,969 $2,286,769 $267,306 13.2% 51202-Medicare $231,726 $205,813 $239,099 $223,927 $18,114 8.8% 51203-Medical Retirement Contrs $0 $0 $0 $6,016 $6,016 N/A 51204-401A Plan City $23,560 $24,448 $23,724 $26,690 $2,242 9.2% 51205-Contributions to City Pension $15,474 $16,260 $16,260 $12,028 -$4,232 -26% 51211-PERS Regular Contributions $322,828 $345,088 $331,125 $361,820 $16,732 4.8% 51212-PERS Sworn Contributions $2,148,112 $2,240,605 $2,259,131 $2,419,088 $178,483 8% 51213-PERS Regular Net Pension Liab $0 $59,853 $56,737 $108,849 $48,996 81.9% 51214-PERS Sworn Net Pension Liab $0 $469,862 $454,657 $854,493 $384,631 81.9% 51219-PERS Suppl Retire Pymt (415)$10,441 $4,504 $5,965 $4,504 $0 0% 51231-Unemployment $4,176 $4,175 $4,175 $4,175 $0 0% 51232-Workers Compensation $2,206,800 $2,003,460 $2,003,460 $2,532,065 $528,605 26.4% Total Salaries & Benefits:$23,790,648 $25,054,659 $25,429,194 $27,686,586 $2,631,927 10.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 210 Materials & Services 52101-Contract Services $1,517,064 $1,700,020 $1,671,000 $1,793,270 $93,250 5.5% 52103-Software Purchases and Subscriptions $296,318 $364,990 $333,820 $356,610 -$8,380 -2.3% 52105-SBRPCA Communications $1,519,568 $1,656,060 $1,656,000 $1,631,783 -$24,277 -1.5% 52106-Physical/Psychological Exams $46,720 $45,000 $49,000 $49,000 $4,000 8.9% 52107-Legal Services $0 $5,000 $0 $500 -$4,500 -90% 52108-Background Investigations $40,435 $30,480 $20,000 $31,680 $1,200 3.9% 52201-Departmental Supplies $312,422 $422,125 $459,800 $387,905 -$34,220 -8.1% 52202-Office Supplies $19,365 $23,900 $20,000 $23,900 $0 0% 52203-Printing $17,724 $19,850 $20,000 $21,750 $1,900 9.6% 52204-Postage $7,619 $7,278 $7,278 $1,600 -$5,678 -78% 52205-Uniforms/Safety Equipment $155,391 $177,175 $182,800 $196,825 $19,650 11.1% 52206-Advertising $1,260 $2,000 $30,000 $6,500 $4,500 225% 52301-Training, Conf & Meetings $152,239 $177,900 $178,000 $189,150 $11,250 6.3% 52302-STC Training $6,991 $6,550 $6,500 $6,800 $250 3.8% 52303-POST Training $103,773 $96,800 $120,000 $101,800 $5,000 5.2% 52304-Employee Awards & Events $3,813 $4,100 $4,100 $4,600 $500 12.2% 52307-Memberships & Dues $6,271 $10,530 $7,575 $9,990 -$540 -5.1% 52308-Reference Books & Periodicals $5,557 $1,190 $1,500 $2,000 $810 68.1% 52703-City Funds Match $9,926 $12,000 $12,000 $15,000 $3,000 25% 52801-Computers, Supplies & Software $21,328 $32,500 $34,000 $34,000 $1,500 4.6% 53101-Telephone $26,087 $27,553 $26,410 $26,806 -$747 -2.7% 53102-Electricity $153,331 $133,204 $120,000 $140,654 $7,450 5.6% 53103-Natural Gas $16,004 $25,348 $19,000 $19,285 -$6,063 -23.9% 53104-Water $4,835 $10,979 $11,622 $11,295 $316 2.9% 53105 Postage Allocation $0 $0 $0 $7,549 $7,549 N/A 52803-Leased Property & Equipment $0 $0 $0 $91,500 $91,500 N/A Total Materials & Services:$4,444,044 $4,992,532 $4,990,405 $5,161,752 $169,220 3.4% Internal Services Charge 54102-Warehouse Purchases $6,594 $5,200 $6,600 $7,000 $1,800 34.6% 54104-Information Systems Allocation $1,194,408 $1,228,392 $1,228,392 $1,553,764 $325,372 26.5% 54105-Insurance Allocation $1,164,358 $2,048,100 $2,048,100 $2,170,980 $122,880 6% 54106-Fleet Rental Allocation $441,852 $507,800 $522,068 $551,070 $43,270 8.5% 54107-Fleet Maintenance Allocation $928,866 $1,084,732 $1,084,732 $1,036,112 -$48,620 -4.5% 54108-Building & Ops Allocation $651,963 $640,155 $640,155 $704,144 $63,989 10% Total Internal Services Charge:$4,388,042 $5,514,379 $5,530,047 $6,023,070 $508,691 9.2% Transfers 59201-Transfers Out $199,596 $0 $0 $0 $0 0% Total Transfers:$199,596 $0 $0 $0 $0 0% Capital Projects & Equipment Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 211 61203-Computer Equipment & Software $72,154 $95,000 $75,000 $0 -$95,000 -100% 61401-Vehicles $2,305 $539,580 $538,000 $0 -$539,580 -100% Total Capital Projects & Equipment:$74,459 $634,580 $613,000 $0 -$634,580 -100% Debt Service 71101-Bond Principal $287,500 $300,000 $300,000 $310,000 $10,000 3.3% 71102-Bond Interest $93,451 $81,731 $81,731 $69,532 -$12,199 -14.9% 71103-Bond Administration Fee $0 $900 $900 $900 $0 0% 71107-POB Miscellaneous Principal $182,134 $169,387 $183,805 $173,382 $3,995 2.4% 71108-POB Miscellaneous Interest $107,933 $98,167 $107,490 $97,702 -$465 -0.5% 71109-POB Safety Principal $1,620,000 $1,635,000 $1,635,000 $1,650,000 $15,000 0.9% 71110-POB Safety Interest $960,405 $947,857 $956,148 $930,012 -$17,845 -1.9% Total Debt Service:$3,251,423 $3,233,042 $3,265,074 $3,231,528 -$1,514 0% Total Expense Objects:$36,148,212 $39,429,192 $39,827,720 $42,102,936 $2,673,744 6.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $35,609,347 $38,223,846 $38,559,945 $40,371,162 $2,147,316 5.6% Asset Forfeiture Fund $54,601 $78,000 $178,750 $168,000 $90,000 115.4% Police Safety Grants Fund $103,313 $215,000 $195,000 $220,000 $5,000 2.3% Capital Improvement Fund $380,951 $382,631 $382,631 $380,432 -$2,199 -0.6% Section 115 Trust Fund $0 $529,715 $511,394 $963,342 $433,627 81.9% Total:$36,148,212 $39,429,192 $39,827,720 $42,102,936 $2,673,744 6.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 212 POLICE ADMINISTRATION PROGRAM OVERVIEW The Administration & Investigations Bureau functions include Personnel and Training, Professional Standards, Technical Support Services, Property and Evidence, Dispatch Services, Community Affairs, and Investigations. Personnel and Training Section The Personnel and Training Section operates within this program. Functions include coordinating training for sworn and civilian personnel, managing testing, selection, backgrounds, and hiring of all Department employees, and providing oversight of Department-issued equipment. The Department continues to maintain 100% compliance with Peace Officer Standards and Training (POST) and Standards and Training for Corrections (STC) requirements. This training is of direct importance to residents, as it ensures that officers and staff are prepared and trained to respond to community issues and problems. POST Training and STC Training are reimbursed in part by the state of California. The Department has obtained POST certification for several in-house training programs, which are mandated for all sworn officers to attend, including Drivers Training, Arrest and Control Tactics, and Tactical Firearms. These in-house training courses are delivered at a lower cost and can be tailored to meet Department-specific needs. Investigations Section The Investigations Section provides professional and thorough investigations of reported criminal acts. Investigators follow-up on crime reports from Patrol, and conduct a variety of proactive investigations and enforcement efforts. Some of these investigations require detectives to conduct surveillance and undercover operations, work closely with other agencies, and serve search and arrest warrants. The detectives investigate many different types of crimes: crimes against persons, property crimes, fraud/forgery cases, narcotic-related cases, and juvenile crimes. Detectives attend intelligence-sharing meetings with local and regional police and government agencies on topics such as include robbery, sexual assault, property crime investigation meetings, regional Child Protection Task Force, and Joint Terrorism Task Force hosted by the Federal Bureau of Investigation (FBI). The Section continues to assign a full-time officer to the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT) and a full-time officer to Homeland Security Investigations Task Force. MBPD's participation in these regional task forces are invaluable investments in the protection of the community, because the task forces assist agencies in identifying and capturing criminals who are unlikely to be caught by ordinary means due to the complexity or resource intensive nature of the investigations. Technical Support Services Section The Technical Support Services Section processes and maintains all reports produced by police personnel, including crime, arrest, and traffic reports. Working 24 hours a day, staff-members greet visitors at the main lobby of the public safety facility, answer phones, process evidence, and enter stolen property, vehicles, missing persons, and warrants into local and regional databases. They frequently provide statistical data and assist officers in locating information pertinent to their investigations, including running criminal background checks of suspects and arrested persons, and preparing documents which aid in prosecution of criminals. The Section also prepares local crime statistics for State and Federal agencies, assembles report packages for filing cases with the District Attorney's office, transfers information and bail money to court, and processes all citations and warrants that are issued. Technology is utilized to enhance the tracking of stored evidence and property, resulting in a more efficient and secure property and evidence retention process. Audits are performed regularly to ensure that property held as evidence is accurately labeled and stored. Dispatch Services Dispatch and communications operations are contracted through the South Bay Regional Public Communications Authority (SBRPCA), which provides emergency dispatch and communication functions for both Police and Fire services. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 213 Community Affairs Section The Community Affairs Section strengthens relations between the Police Department and the public, disseminates press releases, interfaces with the media, provides a variety of crime prevention and safety programs, manages the false alarm program, and coordinates volunteer activities. The Neighborhood Watch Program, Victim Assistance Team (VAT), and Volunteers in Policing (VIP) are three invaluable volunteer programs coordinated out of the Community Affairs Section. Manhattan Beach’s Neighborhood Watch Program epitomizes the best in community policing. Citizen involvement is key to preserving and protecting the quality of life in Manhattan Beach, and the Neighborhood Watch Program allows the community to work together in partnership with the Police Department at achieving this important goal. The active participation of over 400 block captains in the Neighborhood Watch Program helps to maintain strong neighborhoods and improve quality of life in the community. Two officers serve as School Resource Officers (SRO) and work at the local schools. They work in collaboration with school officials to promote a safe environment in and around our local elementary, junior high, and high schools. The SROs strive to promote harmonious relationships by presenting themselves as positive role models, maintaining dialogue with students and staff, and participating in school and youth events. They also participate in after-school and summer programs. OBJECTIVES FY 2026 Maintain compliance with Peace Officer Standards and Training (POST) and Standards and Training for Corrections (STC). Offer career development and leadership training for sworn and civilian personnel. Provide in-house training programs to maintain and enhance skills while minimizing operational disruptions and reducing expenses. Make progress on the 2025-2028 Police Department Strategic Plan goals, objectives and action items; report accomplishments to the community. Enhance usage of crime-reduction technologies. Coordinate patrol and detective response to crime trends; aggressively pursue leads in an effort to solve crimes, and successfully arrest and prosecute criminals. Be responsive and compassionate with crime victims. Conduct audits of property held as evidence. Work with the South Bay Regional Public Communications Authority to upgrade Computer-Aided Dispatch System to enhance efficiency and effectiveness. Efficiently enter and manage data for various Department needs using the Records Management System; assist officers in gathering data for field investigations. Maintain timely response to public records requests. Work in collaboration with school officials to promote a safe environment in and around our local schools. Continue to enhance communication with the public through social media. Present crime prevention and safety presentations to residents, businesses, and community groups. Coordinate volunteer programs, including supporting Neighborhood Watch activities. Reduce the incidence of false alarm activations through the False Alarm Reduction Program. Provide high visibility bike patrols in both residential and commercial areas MAJOR SERVICE DELIVERY CHANGES The Police Department's Technology Specialist position is being transitioned to the Information Technology (IT) Department’s budget. The position will continue to serve the Police Department, but primary supervision will be housed within the IT Department, with the goal of facilitating cross-training of IT staff on police technologies and enhancing resource availability for public safety. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 214 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 2.00 2.00 2.00 Background Investigator 1.00 1.00 1.00 Crime Analyst 1.00 1.00 1.00 Executive Assistant 2.00 2.00 2.00 Lead Police Records Technician 2.00 2.00 2.00 Office Assistant 2.00 2.00 2.00 Police Captain 1.00 1.00 1.00 Police Chief 1.00 1.00 1.00 Police Lieutenant 2.00 2.00 2.00 Police Officer 19.00 19.00 19.00 Police Records Manager 1.00 1.00 1.00 Police Records Specialist 1.00 1.00 1.00 Police Records Technician 7.00 7.00 7.00 Police Sergeant 3.00 4.00 4.00 Police Services Officer 1.00 -- Property & Evidence Officer 1.00 2.00 2.00 Public Safety Systems Specialist 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 Technology Specialist 1.00 1.00 - 50.00 51.00 50.00 4,700 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 215 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 216 Salaries & Benefits (54.5%)Salaries & Benefits (54.5%)Salaries & Benefits (54.5%) Internal Services Charge (17.6%)Internal Services Charge (17.6%)Internal Services Charge (17.6%) Debt Service (14.1%)Debt Service (14.1%)Debt Service (14.1%) Materials & Services (13.8%)Materials & Services (13.8%)Materials & Services (13.8%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,594,514 $1,801,055 $1,780,202 $1,871,813 $70,758 3.9% 51102-Sworn Employee Salaries $3,137,281 $4,068,528 $4,013,162 $4,324,818 $256,290 6.3% 51103-Part Time Employee Salaries $91,096 $133,880 $143,000 $142,900 $9,020 6.7% 51104-Overtime Regular Employees $138,987 $106,988 $110,500 $116,588 $9,600 9% 51105-Overtime Sworn Employees $410,147 $346,300 $338,000 $347,200 $900 0.3% 51201-Group Medical Insurance $755,880 $816,148 $791,331 $950,305 $134,157 16.4% 51202-Medicare $75,981 $87,051 $91,932 $91,927 $4,876 5.6% 51203-Medical Retirement Contrs $0 $0 $0 $6,016 $6,016 N/A 51204-401A Plan City $21,463 $19,821 $18,768 $21,922 $2,101 10.6% 51205-Contributions to City Pension $15,474 $16,260 $16,260 $12,028 -$4,232 -26% 51211-PERS Regular Contributions $156,390 $173,648 $159,789 $181,744 $8,096 4.7% 51212-PERS Sworn Contributions $710,113 $892,026 $894,698 $909,543 $17,517 2% 51213-PERS Regular Net Pension Liab $0 $59,853 $56,737 $108,849 $48,996 81.9% 51214-PERS Sworn Net Pension Liab $0 $469,862 $454,657 $854,493 $384,631 81.9% 51219-PERS Suppl Retire Pymt (415)$10,441 $4,504 $5,965 $4,504 $0 0% 51231-Unemployment $4,176 $4,175 $4,175 $4,175 $0 0% 51232-Workers Compensation $2,206,800 $2,003,460 $2,003,460 $2,532,065 $528,605 26.4% Total Salaries & Benefits:$9,328,742 $11,003,559 $10,882,636 $12,480,890 $1,477,331 13.4% Materials & Services Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 217 EXPENDITURES BY TYPE 52101-Contract Services $327,275 $358,850 $364,000 $322,450 -$36,400 -10.1% 52103-Software Purchases and Subscriptions $280,805 $332,390 $301,820 $338,010 $5,620 1.7% 52105-SBRPCA Communications $1,519,568 $1,656,060 $1,656,000 $1,631,783 -$24,277 -1.5% 52106-Physical/Psychological Exams $46,720 $45,000 $49,000 $49,000 $4,000 8.9% 52107-Legal Services $0 $5,000 $0 $500 -$4,500 -90% 52108-Background Investigations $40,435 $30,480 $20,000 $31,680 $1,200 3.9% 52201-Departmental Supplies $108,802 $140,325 $160,800 $134,105 -$6,220 -4.4% 52202-Office Supplies $19,365 $23,900 $20,000 $23,900 $0 0% 52203-Printing $17,724 $19,850 $20,000 $21,750 $1,900 9.6% 52204-Postage $7,619 $7,278 $7,278 $1,600 -$5,678 -78% 52205-Uniforms/Safety Equipment $77,592 $69,800 $81,200 $81,300 $11,500 16.5% 52206-Advertising $1,260 $2,000 $30,000 $6,500 $4,500 225% 52301-Training, Conf & Meetings $81,873 $104,850 $97,000 $110,750 $5,900 5.6% 52302-STC Training $6,991 $6,550 $6,500 $6,800 $250 3.8% 52303-POST Training $103,773 $96,800 $120,000 $101,800 $5,000 5.2% 52304-Employee Awards & Events $3,813 $4,100 $4,100 $4,600 $500 12.2% 52307-Memberships & Dues $5,841 $8,220 $6,700 $8,220 $0 0% 52308-Reference Books & Periodicals $5,557 $1,190 $1,500 $2,000 $810 68.1% 52703-City Funds Match $9,926 $12,000 $12,000 $15,000 $3,000 25% 52801-Computers, Supplies & Software $13,255 $12,500 $14,000 $14,000 $1,500 12% 53101-Telephone $21,918 $22,560 $22,375 $22,711 $151 0.7% 53102-Electricity $153,331 $133,204 $120,000 $140,654 $7,450 5.6% 53103-Natural Gas $16,004 $25,348 $19,000 $19,285 -$6,063 -23.9% 53104-Water $4,835 $10,979 $11,622 $11,295 $316 2.9% 53105 Postage Allocation $0 $0 $0 $7,549 $7,549 N/A 52803-Leased Property & Equipment $0 $0 $0 $45,000 $45,000 N/A Total Materials & Services:$2,874,284 $3,129,234 $3,144,895 $3,152,242 $23,008 0.7% Internal Services Charge 54102-Warehouse Purchases $6,594 $5,200 $6,600 $7,000 $1,800 34.6% 54104-Information Systems Allocation $479,688 $552,217 $552,217 $711,438 $159,221 28.8% 54105-Insurance Allocation $1,164,358 $2,048,100 $2,048,100 $2,170,980 $122,880 6% 54106-Fleet Rental Allocation $34,224 $72,520 $72,520 $164,350 $91,830 126.6% 54107-Fleet Maintenance Allocation $159,101 $198,229 $198,229 $278,483 $80,254 40.5% 54108-Building & Ops Allocation $651,963 $640,155 $640,155 $704,144 $63,989 10% Total Internal Services Charge:$2,495,928 $3,516,421 $3,517,821 $4,036,395 $519,974 14.8% Transfers 59201-Transfers Out $161,269 $0 $0 $0 $0 0% Total Transfers:$161,269 $0 $0 $0 $0 0% Capital Projects & Equipment 61203-Computer Equipment & Software $72,154 $95,000 $75,000 $0 -$95,000 -100% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 218 61401-Vehicles $2,305 $243,930 $243,000 $0 -$243,930 -100% Total Capital Projects & Equipment:$74,459 $338,930 $318,000 $0 -$338,930 -100% Debt Service 71101-Bond Principal $287,500 $300,000 $300,000 $310,000 $10,000 3.3% 71102-Bond Interest $93,451 $81,731 $81,731 $69,532 -$12,199 -14.9% 71103-Bond Administration Fee $0 $900 $900 $900 $0 0% 71107-POB Miscellaneous Principal $182,134 $169,387 $183,805 $173,382 $3,995 2.4% 71108-POB Miscellaneous Interest $107,933 $98,167 $107,490 $97,702 -$465 -0.5% 71109-POB Safety Principal $1,620,000 $1,635,000 $1,635,000 $1,650,000 $15,000 0.9% 71110-POB Safety Interest $960,405 $947,857 $956,148 $930,012 -$17,845 -1.9% Total Debt Service:$3,251,423 $3,233,042 $3,265,074 $3,231,528 -$1,514 0% Total Expense Objects:$18,186,106 $21,221,186 $21,128,426 $22,901,055 $1,679,869 7.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $17,805,154 $20,308,840 $20,234,401 $21,557,281 $1,248,441 6.1% Capital Improvement Fund $380,951 $382,631 $382,631 $380,432 -$2,199 -0.6% Section 115 Trust Fund $0 $529,715 $511,394 $963,342 $433,627 81.9% Total:$18,186,106 $21,221,186 $21,128,426 $22,901,055 $1,679,869 7.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 219 PATROL PROGRAM OVERVIEW Patrol is comprised of two shifts of uniformed police officers that provide services 24 hours a day. Patrol officers are the first responders to emergencies, and their emergency response time averages approximately two minutes – when a resident or business calls dispatch with an emergency, the average time it takes an officer to arrive on scene is two minutes. Patrol officers respond to immediate and routine service calls, crime-related incidents, and quality of life issues. They conduct preliminary investigations, collect evidence, and arrest offenders. Other responsibilities include recovering lost or stolen property, ensuring the safety and protection of persons and property through proactive and directed patrol, enforcing traffic laws, providing high visibility enforcement during events, rendering aid to the community as needed, and providing the highest level of quality service through problem solving and community- oriented policing. Officers strive to provide an excellent level of service and take pride in building partnerships with residents and businesses in the community. Special programs currently operated under Patrol include K-9 Program, Special Weapons and Tactics (SWAT) Team, Crisis Negotiation Team, South Bay Platoon, Beach Patrol, Crime Scene Investigations (CSI), and Field Training Officer Program. The Manhattan Beach Police Department also operates a short-term, Type 1 Jail facility mainly used for housing arrestees awaiting arraignment in court, after which, arrestees are either transferred to L.A. County jail or released on bail, bond, or their own recognizance. Police Service Officers are on duty 24 hours a day and are assigned duties to provide for the booking, housing, and welfare of inmates. In cases where prisoners have not posted bail or bond, jailers transport prisoners to court for arraignment proceedings. OBJECTIVES FY 2026 Ensure rapid response times to calls for service, and improve service levels and response times whenever possible. Provide the highest levels of service to the community while maintaining a friendly and professional demeanor. Enhance usage of crime reduction technologies. Identify crime trends and provide directed patrols in an effort to reduce crime and enhance quality of life. Enhance visibility and communication within the community with foot beat and bicycle patrols. Comply with all State and County jail regulations. Provide on-going professional training to all jail staff. Provide safe housing for inmates. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 220 MAJOR SERVICE DELIVERY CHANGES The Police Department's goal is to provide expedient response to community emergencies while addressing crime trends in a proactive manner, reducing crime and the fear of crime, and enhancing quality of life for residents and visitors. MBPD continues to implement innovative crime fighting efforts, including enhanced/increased patrol burglary suppression details, undercover details, and deployment of crime impact teams. As we are currently short-staffed due to sworn officer vacancies, most of these details are conducted on an overtime basis. The Division also continues to implement innovative crime fighting programs, as well as provide enforcement of community priorities and address quality of life issues, including homeless outreach, strand and bike path enforcement, and other municipal code violations. In light of potential threats to crowded events, the practice for modern law enforcement agencies is to staff a crisis response team at each event - this team is comprised of Special Weapons and Tactics (SWAT) personnel, an armored rescue vehicle, and medically trained officers with first aid supplies. The fiscal year 2024-2025 budget includes funding for a rescue vehicle, which will be deployed at all high-profile events, warrant services, and other emergencies. It will be equipped with medical supplies and operated by SWAT officers who are trained in tactical emergency medicine. Each year, various agencies such as the Los Angeles County Grand Jury and the County Board of Health conduct jail inspections in line with Title 15 jail standards. In addition, staff conducts regular safety inspections of the jail to ensure equipment and maintenance issues are up-to- date and meet safety regulations. Jail management's goal is to provide adequate care and custody of inmates in the jail facility and provide staff with the necessary training and resources to safely carry out those duties. We continue to meet and exceed all criteria of state and regional jail safety inspections, and conduct our own monthly in-house jail safety inspections to ensure safe housing of our inmates and safety of our jailers. The Manhattan Beach Police Department is required by state and federal law to provide medical services to arrestees known to have, or declaring, medical issues or injuries prior to booking and housing them in our jail. Additionally, the Department routinely requires medical services in the form of blood draws for those arrested for DUI or under the influence of a controlled substance. Costs associated with these treatments are borne by the Police Department (Contract Services). AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Police Captain 1.00 1.00 1.00 Police Lieutenant 2.00 2.00 2.00 Police Officer 29.00 29.00 29.00 Police Sergeant 6.00 6.00 6.00 Police Services Officer 6.00 6.00 6.00 44.00 44.00 44.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 221 Salaries & Benefits (86.3%)Salaries & Benefits (86.3%)Salaries & Benefits (86.3%) Internal Services Charge (10%)Internal Services Charge (10%)Internal Services Charge (10%) Materials & Services (3.8%)Materials & Services (3.8%)Materials & Services (3.8%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $534,539 $471,633 $562,626 $502,082 $30,449 6.5% 51102-Sworn Employee Salaries $5,506,399 $5,346,566 $5,549,949 $5,820,910 $474,344 8.9% 51104-Overtime Regular Employees $61,479 $58,250 $62,500 $56,400 -$1,850 -3.2% 51105-Overtime Sworn Employees $2,080,815 $1,985,480 $2,150,000 $2,035,215 $49,735 2.5% 51107-Overtime Special Events $398,832 $462,500 $410,000 $450,500 -$12,000 -2.6% 51201-Group Medical Insurance $849,174 $796,239 $932,387 $857,493 $61,254 7.7% 51202-Medicare $116,568 $81,271 $107,676 $91,683 $10,412 12.8% 51211-PERS Regular Contributions $56,597 $45,296 $53,861 $47,276 $1,980 4.4% 51212-PERS Sworn Contributions $1,149,342 $1,094,785 $1,142,231 $1,254,946 $160,161 14.6% Total Salaries & Benefits:$10,753,745 $10,342,020 $10,971,230 $11,116,505 $774,485 7.5% Materials & Services 52101-Contract Services $205,069 $250,470 $224,000 $270,420 $19,950 8% 52201-Departmental Supplies $106,617 $130,300 $133,000 $94,800 -$35,500 -27.2% 52205-Uniforms/Safety Equipment $44,954 $53,075 $53,100 $54,175 $1,100 2.1% 52301-Training, Conf & Meetings $64,623 $61,600 $65,000 $61,600 $0 0% 52307-Memberships & Dues $430 $2,235 $800 $1,695 -$540 -24.2% 53101-Telephone $794 $1,089 $690 $700 -$389 -35.7% Total Materials & Services:$422,487 $498,769 $476,590 $483,390 -$15,379 -3.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 222 EXPENDITURES BY TYPE Internal Services Charge 54104-Information Systems Allocation $490,236 $450,628 $450,628 $557,285 $106,657 23.7% 54106-Fleet Rental Allocation $341,304 $373,040 $373,040 $269,040 -$104,000 -27.9% 54107-Fleet Maintenance Allocation $608,260 $606,049 $606,049 $461,874 -$144,175 -23.8% Total Internal Services Charge:$1,439,800 $1,429,717 $1,429,717 $1,288,199 -$141,518 -9.9% Transfers 59201-Transfers Out $38,327 $0 $0 $0 $0 0% Total Transfers:$38,327 $0 $0 $0 $0 0% Capital Projects & Equipment 61401-Vehicles $0 $295,650 $295,000 $0 -$295,650 -100% Total Capital Projects & Equipment:$0 $295,650 $295,000 $0 -$295,650 -100% Total Expense Objects:$12,654,359 $12,566,156 $13,172,537 $12,888,094 $321,938 2.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $12,654,359 $12,566,156 $13,172,537 $12,888,094 $321,938 2.6% Total General Fund:$12,654,359 $12,566,156 $13,172,537 $12,888,094 $321,938 2.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 223 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 224 TRAFFIC SAFETY PROGRAM OVERVIEW Traffic Operations includes the traffic safety section, special events management, parking enforcement, and animal control. Traffic Safety Section The Traffic Section is responsible for the enforcement of State and local traffic laws, the investigation of traffic collisions, and traffic control management within the City of Manhattan Beach. It also performs directed traffic enforcement in identified areas of concern. Using directed enforcement details, DUI checkpoints, commercial enforcement, and traffic data surveys, officers can address these issues identified as potential problems that could negatively impact the community. Manhattan Beach is host to many special events, including Six Man Volleyball Tournament, Manhattan Beach Open, Holiday Fireworks, Holiday Pier Lighting, Hometown Fair, Pumpkin Race, Tour de Pier and many more. Special events deployment is overseen by the Traffic Sergeant and Traffic Lieutenant. Special events operational plans are reviewed annually to ensure the safety of residents and visitors. In partnership with the City Traffic Engineer and other City staff, the Traffic Section analyzes traffic patterns within the City and works to minimize traffic problems. This includes exploring traffic calming measures and working to reduce traffic collisions by ensuring the safe movement of vehicles and pedestrians throughout the City. The use of speed trailers, message boards, and patrols provide motorists with added awareness of traffic laws. When deployed in areas identified as having frequent traffic violations or collisions, these traffic calming measures can help to change motorist behavior and encourage safe driving habits. Parking Enforcement Section Parking Enforcement duties are provided by Community Services Officers and include enforcing local and State parking regulations, providing traffic control at traffic collisions and crime scenes, participating in parking utilization surveys, assisting at DUI checkpoints, and enforcing municipal code violations (e.g. illegal dumping of debris into the storm drain system, construction site violations, leaf-blower violations, Strand/bike path violations, etc.). Community Services Officers respond to parking complaints and calls for service, and are proactive in the implementation of new programs, which address community parking concerns, including providing special parking enforcement patrols when needs are identified. During special events and summer weekends, Community Services Officers help with traffic and parking management by overseeing street closures, directing pedestrians at intersections, and educating event participants of local parking laws. Community Services Officers also work in partnership with other City departments to ensure efficient parking management. This includes meeting regularly with the Community Development Department, general contractors, and sub-contractors to address construction parking issues. They conduct joint code enforcement inspections, provide input to special event coordinators for parking management, and assist in enforcement of environmental laws. Animal Control Section Animal Control duties are provided by Community Services Officers who are specially trained to handle animal welfare incidents, facilitate veterinary care for injured animals, and provide for the safe return of lost animals to their owners. All lost and stray domesticated animals taken into custody are checked for identifying implanted chips; every effort is made to return animals to their owners. Animal Control Officers educate pet owners about the enforcement of municipal code ordinances related to dogs-at-large, animal bites, dog licensing, barking dogs, and leash laws. Officers also conduct frequent checks at City dog runs, present educational seminars, assist the Finance Department with maintaining current dog licensing information, and participate in community special events to promote awareness of animal safety. Animal sheltering and disposition are provided by the Lovejoy Foundation, an independent, nonprofit animal adoption organization. Animals whose owners cannot be located are taken to the Lovejoy Foundation, which shelters the stray animals and makes every effort to find adoptive families. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 225 OBJECTIVES FY 2026 Promote traffic safety through enforcement and education. Increase officer availability and efficiency with the deployment of speed radar trailers and pole-mounted speed radars. Utilize traffic-calming measures, proactive enforcement, and education to reduce the number of traffic collisions. Identify issues and communicate with the public regarding traffic and parking concerns. Provide the Crossing Guard Program. Manage special events deployment and operational plans, including contracting with a private security service vendor to provide unarmed guard services to augment police staffing at special events. Enhance DUI education and enforcement efforts. Work with other City departments to ensure effective traffic management, parking management, and pedestrian movement, including safe movement of vehicles and pedestrians around school zones, bike path, The Strand, Pier, residential, and commercial areas. Provide consistent and efficient enforcement of parking laws and ongoing education to promote turnover, maintain quality of life, and provide a safe environment for residents and visitors. Identify issues and communicate with the public regarding animal concerns and animal laws. Provide pet education, conduct directed enforcement, and investigate dog bite incidents. Manage the Lost and Found Pet webpage on the City website to facilitate the safe return of pets to their owners. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 226 MAJOR SERVICE DELIVERY CHANGES Traffic and congestion continue to be a concern of residents. MBPD's traffic officers are dedicated to addressing these, as well as neighborhood concerns such as speeding in residential areas, e-bikes, and the Sepulveda corridor. They also focus their efforts on high accident locations, pedestrian safety, safety around the schools, and removing impaired drivers from our roadways. The FY 2026 budget includes funding for contracted Crossing Guard services, which provides safe passage for children at 26 locations throughout the City. It also includes unarmed private security services, which are brought in to augment public safety staffing for special events and crowded beach days and to aid the Department in managing traffic control, crowd control, and perimeter security. In FY 2025, the Police Department was successful in obtaining a $75,000 grant from the California Office of Traffic Safety to enhance DUI enforcement efforts. The Police Department is again seeking grant funding to augment DUI enforcement efforts in FY 2026. Three full-time Lead Community Services Officer positions were approved at the mid-year FY 2024 budget presentation. Staff identified the need to reinstate three Community Service Officer (CSO) positions lost in 2020 in order to meet community expectations in the areas of parking enforcement, animal control, traffic control, and community quality of life enforcement, as well as for special events. These positions were recommended to be Lead CSO positions in order to provide supervisory continuity and to balance the span of supervision in the Police Department's Parking and Animal Control unit (1 supervisor to 23 full-time and part-time employees). These positions ensure that the Police Department can consistently deliver a high level of service to the community. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant --1.00 Community Services Officer 12.00 12.00 12.00 Lead Community Services Officer -3.00 3.00 Office Assistant 1.00 1.00 - Park Services Enforcement Officer 1.00 1.00 1.00 Police Lieutenant 1.00 1.00 1.00 Police Officer 5.00 5.00 5.00 Police Sergeant 2.00 1.00 1.00 Police Support Supervisor 1.00 1.00 1.00 23.00 25.00 25.00 7,900 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 227 Salaries & Benefits (66.7%)Salaries & Benefits (66.7%)Salaries & Benefits (66.7%) Materials & Services (21.5%)Materials & Services (21.5%)Materials & Services (21.5%) Internal Services Charge (11.8%)Internal Services Charge (11.8%)Internal Services Charge (11.8%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,129,255 $1,293,243 $1,232,929 $1,396,686 $103,443 8% 51102-Sworn Employee Salaries $1,234,892 $1,069,925 $912,024 $1,131,140 $61,215 5.7% 51103-Part Time Employee Salaries $160,685 $222,400 $265,000 $253,150 $30,750 13.8% 51104-Overtime Regular Employees $120,916 $111,180 $125,000 $118,310 $7,130 6.4% 51105-Overtime Sworn Employees $190,349 $135,200 $135,000 $140,450 $5,250 3.9% 51201-Group Medical Insurance $378,374 $407,076 $372,964 $478,971 $71,895 17.7% 51202-Medicare $38,493 $37,491 $38,028 $40,317 $2,826 7.5% 51204-401A Plan City $2,097 $4,627 $4,956 $4,768 $141 3% 51211-PERS Regular Contributions $109,841 $126,144 $117,475 $132,800 $6,656 5.3% 51212-PERS Sworn Contributions $288,658 $253,794 $222,202 $254,599 $805 0.3% Total Salaries & Benefits:$3,653,559 $3,661,080 $3,425,578 $3,951,191 $290,111 7.9% Materials & Services 52101-Contract Services $947,446 $1,016,700 $1,014,000 $1,155,400 $138,700 13.6% 52103-Software Purchases and Subscriptions $15,513 $32,600 $32,000 $18,600 -$14,000 -42.9% 52201-Departmental Supplies $47,783 $27,500 $51,000 $31,000 $3,500 12.7% 52205-Uniforms/Safety Equipment $24,101 $27,300 $28,500 $31,350 $4,050 14.8% 52301-Training, Conf & Meetings $5,742 $11,450 $16,000 $16,800 $5,350 46.7% 52307-Memberships & Dues $0 $75 $75 $75 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 228 EXPENDITURES BY TYPE 53101-Telephone $3,375 $3,904 $3,345 $3,395 -$509 -13% 52803-Leased Property & Equipment $0 $0 $0 $19,500 $19,500 N/A Total Materials & Services:$1,043,960 $1,119,529 $1,144,920 $1,276,120 $156,591 14% Internal Services Charge 54104-Information Systems Allocation $224,484 $225,547 $225,547 $285,041 $59,494 26.4% 54106-Fleet Rental Allocation $66,324 $62,240 $76,508 $117,680 $55,440 89.1% 54107-Fleet Maintenance Allocation $161,506 $280,454 $280,454 $295,755 $15,301 5.5% Total Internal Services Charge:$452,314 $568,241 $582,509 $698,476 $130,235 22.9% Total Expense Objects:$5,149,833 $5,348,850 $5,153,007 $5,925,787 $576,937 10.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $5,149,833 $5,348,850 $5,153,007 $5,925,787 $576,937 10.8% Total General Fund:$5,149,833 $5,348,850 $5,153,007 $5,925,787 $576,937 10.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 229 ASSET FORFEITURES PROGRAM OVERVIEW The Asset Forfeiture fund has been established in accordance with Federal and State requirements to account for revenues derived from monies and property seized in drug-related incidents. The primary purpose of narcotics asset forfeiture is to deter drug-related crimes by depriving criminals of the profits and proceeds acquired through illegal drug transactions. The forfeiture laws are intended to be harsh on those individuals distributing drugs and are designed to enhance the enforcement revenues provided to Federal, State, and municipal agencies. Proceeds from asset forfeitures are designed to provide law enforcement with equipment and resources to supplement but not supplant the Department's normal operating budget. Asset Forfeiture funds can be used in support of front-line law enforcement purposes, as approved by the Chief of Police. The Police Department also receives monies through the California Supplemental Law Enforcement Services (SLES) Fund. These funds are designed to supplement, but not supplant, the Police Department operating budget. OBJECTIVES FY 2026 Fund new equipment and resources to enhance front-line law enforcement, as afforded by State and Federal Asset Forfeiture laws and the granting agencies. MAJOR SERVICE DELIVERY CHANGES The Police Department continually seeks grant funding to augment the delivery of police services without impacting the General Fund. In recent years, the Police Department has been successful in receiving several grants to enhance services in the areas of DUI enforcement and education, officer wellness, homeless outreach, homeland security, and alcoholic beverage control, as well as funding to purchase safety gear and equipment for front line law enforcement. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 230 Materials & Services (64.4%)Materials & Services (64.4%)Materials & Services (64.4%) Salaries & Benefits (35.6%)Salaries & Benefits (35.6%)Salaries & Benefits (35.6%) Expense Objects Salaries & Benefits 51105-Overtime Sworn Employees $48,939 $48,000 $138,000 $138,000 $90,000 187.5% 51201-Group Medical Insurance $4,977 $0 $10,287 $0 $0 0% 51202-Medicare $684 $0 $1,463 $0 $0 0% Total Salaries & Benefits:$54,601 $48,000 $149,750 $138,000 $90,000 187.5% Materials & Services 52101-Contract Services $37,274 $74,000 $69,000 $45,000 -$29,000 -39.2% 52201-Departmental Supplies $49,221 $124,000 $115,000 $128,000 $4,000 3.2% 52205-Uniforms/Safety Equipment $8,744 $27,000 $20,000 $30,000 $3,000 11.1% 52801-Computers, Supplies & Software $8,073 $20,000 $20,000 $20,000 $0 0% 52803-Leased Property & Equipment $0 $0 $0 $27,000 $27,000 N/A Total Materials & Services:$103,313 $245,000 $224,000 $250,000 $5,000 2% Total Expense Objects:$157,914 $293,000 $373,750 $388,000 $95,000 32.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Asset Forfeiture Fund $54,601 $78,000 $178,750 $168,000 $90,000 115.4% Police Safety Grants Fund $103,313 $215,000 $195,000 $220,000 $5,000 2.3% Total:$157,914 $293,000 $373,750 $388,000 $95,000 32.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 231 EXPENDITURES BY TYPE CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 232 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 234 MISSION The mission of the Manhattan Beach fire department is to preserve life, property, and the environment through decisive action, strong leadership, teamwork, and dedicated community partnerships. The purpose statement for the department is “always here, serving our community as family. DEPARTMENT OVERVIEW The Fire Department’s area of responsibilities include fire suppression, emergency medical services, fire prevention, plan checks, permits and code enforcement, fire investigation, emergency preparedness, and public education. These services are provided through the following department divisions: Administration Fire Operations Community Risk Reduction Emergency Medical Services Support Services The Fire Department provides local, regional, and state-level leadership through participation in various organizations and committees. This includes participation in the California Fire Chiefs Association, Los Angeles Area Fire Chiefs, South Bay Area Fire Chiefs, League of California Cities, Los Angeles Area Fire Marshals, Southern Division of the Fire Prevention Officers, Los Angeles Area G Operations and Training Committees, Area G and Los Angeles County Emergency Managers group, and many more. RECENT ACCOMPLISHMENT HIGHLIGHTS Received a “No Actions Required” audit for our paramedic program from Los Angeles County Emergency Medical Services Agency. Maintained the Class 2 Public Protection Classification from the Office of Insurance Services for fire protection. Hired eight new Firefighters. Deployment of Rescue Ambulance 22. Completion of the Local Hazard Mitigation Plan, obtained FEMA approval and adopted by City Council. New Fire Engine placed in-service. Fire Department Wellness Program was developed with the first stages implemented, meeting the National Fire Protection Association consensus documents. Policy and Procedures manuals are undergoing an update to meet best practices, mandates, and legal standards. Launched PulsePoint, a 911-connected mobile app that alerts CPR-trained bystanders to nearby cardiac arrest emergencies, encouraging them to assist and improve survival chances, also provides general notification to community members on emergency calls. Wildland Refresher Training (RT-130) – South Bay Fire Departments participated in an operational area drill that simulated a wildland fire in the hills of Torrance and Palos Verdes. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 235 PERFORMANCE MEASURES % PLAN REVIEWS DONE IN-HOUSE PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 50%75%100%100% % ANNUAL FIRE LIFE/SAFETY INSPECTIONS ON BUSINESS OCCUPANCIES PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 90.5%100%100%100% % INCREASE OF CITIZENS & COMMUNITY MEMBERS TRAINED AS CERT MEMBERS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 120%47.19%35%7.63% % FIRST-ARRIVING FIRE DEPARTMENT UNIT WITHIN 5:00 MIN OF EMERGENCY CALL PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 54.76%54.56%59.76%90% The Community Risk Reduction Division of the Fire Department handles the review of building plans and fire/life safety system plans, with the flexibility to outsource to a third-party vendor when necessary. The Fire Department conducts annual visits to businesses to verify compliance with adopted fire code to identify circumstances or conditions that threaten the life or safety of occupants and visitors. CERT (Community Emergency Response Team) members are an all-volunteer organization created to enhance disaster preparedness and emergency response for the citizens of Manhattan Beach. In accordance with the National Fire Prevention Association's standard NFPA 1710, firefighters strive to meet the following: 60 seconds to turn- out, 4 minutes for the first engine company to arrive on scene. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 236 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 237 DEPARTMENT EXPENDITURES BY PROGRAM Fire Operations (39.5%)Fire Operations (39.5%)Fire Operations (39.5%) Fire Admin (35.4%)Fire Admin (35.4%)Fire Admin (35.4%) Emergency Medical Services (18.1%)Emergency Medical Services (18.1%)Emergency Medical Services (18.1%) Support Services (3.5%)Support Services (3.5%)Support Services (3.5%) Community Risk Reduction (3.4%)Community Risk Reduction (3.4%)Community Risk Reduction (3.4%) Expenditures Fire Fire Admin $8,258,752 $6,686,023 $6,849,711 $7,009,510 $323,487 4.8% Total Fire Admin:$8,258,752 $6,686,023 $6,849,711 $7,009,510 $323,487 4.8% Community Risk Reduction Prevention $605,098 $700,894 $736,122 $679,230 -$21,664 -3.1% Fire Investigation $6,816 $11,170 $11,170 $800 -$10,370 -92.8% Total Community Risk Reduction:$611,914 $712,064 $747,292 $680,030 -$32,034 -4.5% Fire Operations $8,056,725 $7,527,168 $8,732,514 $7,837,716 $310,548 4.1% Total Fire Operations:$8,056,725 $7,527,168 $8,732,514 $7,837,716 $310,548 4.1% Emergency Medical Services $2,857,610 $3,091,045 $3,709,558 $3,592,274 $501,229 16.2% Total Emergency Medical Services:$2,857,610 $3,091,045 $3,709,558 $3,592,274 $501,229 16.2% Support Services Support Services $534,964 $531,695 $574,815 $571,591 $39,896 7.5% Emergency Preparedness $66,300 $109,757 $109,640 $58,335 -$51,422 -46.9% CERT $11,870 $23,286 $23,286 $0 -$23,286 -100% Fire Communications $13,490 $60,271 $60,271 $54,475 -$5,796 -9.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 238 Fire Public Education $16,421 $22,880 $22,880 $15,600 -$7,280 -31.8% Total Support Services:$643,045 $747,889 $790,892 $700,001 -$47,888 -6.4% Total Fire:$20,428,046 $18,764,189 $20,829,967 $19,819,531 $1,055,342 5.6% Total Expenditures:$20,428,046 $18,764,189 $20,829,967 $19,819,531 $1,055,342 5.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 239 SCHEDULE OF EXPENDITURE DETAIL Salaries & Benefits (67.1%)Salaries & Benefits (67.1%)Salaries & Benefits (67.1%) Materials & Services (11.3%)Materials & Services (11.3%)Materials & Services (11.3%) Internal Services Charge (11.3%)Internal Services Charge (11.3%)Internal Services Charge (11.3%) Debt Service (10.2%)Debt Service (10.2%)Debt Service (10.2%) Capital Projects & Equipment (0.03%)Capital Projects & Equipment (0.03%)Capital Projects & Equipment (0.03%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $640,304 $646,771 $688,622 $652,757 $5,986 0.9% 51102-Sworn Employee Salaries $5,912,010 $5,719,422 $6,189,801 $6,211,895 $492,473 8.6% 51103-Part Time Employee Salaries $56,069 $89,032 $184,032 $90,466 $1,434 1.6% 51104-Overtime Regular Employees $0 $13,820 $13,820 $10,235 -$3,585 -25.9% 51105-Overtime Sworn Employees $1,474,045 $1,614,759 $2,180,610 $1,652,528 $37,769 2.3% 51106-Overtime Mutual Aid $31,881 $150,024 $600,000 $150,024 $0 0% 51107-Overtime Special Events $15,885 $32,229 $32,229 $27,115 -$5,114 -15.9% 51108-Overtime Cooperative Resources $0 $20,068 $20,068 $0 -$20,068 -100% 51109-OT Training & Special Detail $199,893 $110,028 $110,028 $113,331 $3,303 3% 51201-Group Medical Insurance $886,565 $873,869 $1,027,167 $984,791 $110,922 12.7% 51202-Medicare $113,174 $93,601 $117,959 $100,852 $7,251 7.7% 51203-Medical Retirement Contrs $0 $0 $0 $6,336 $6,336 N/A 51204-401A Plan City $43,469 $44,519 $50,611 $47,063 $2,544 5.7% 51211-PERS Regular Contributions $62,929 $62,312 $62,954 $65,551 $3,239 5.2% 51212-PERS Sworn Contributions $1,261,924 $1,202,455 $1,372,931 $1,284,345 $81,890 6.8% 51213-PERS Regular Net Pension Liab $0 $10,804 $11,060 $19,648 $8,844 81.9% 51214-PERS Sworn Net Pension Liab $0 $233,903 $226,334 $425,377 $191,474 81.9% 51219-PERS Suppl Retire Pymt (415)$1,502 $8,590 $15,228 $8,590 $0 0% 51232-Workers Compensation $2,103,600 $1,995,900 $1,995,900 $1,443,960 -$551,940 -27.7% Total Salaries & Benefits:$12,803,250 $12,922,106 $14,899,354 $13,294,864 $372,758 2.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 240 Materials & Services 52101-Contract Services $664,110 $632,923 $656,658 $714,690 $81,767 12.9% 52103-Software Purchases and Subscriptions $7,590 $31,560 $31,560 $57,150 $25,590 81.1% 52105-SBRPCA Communications $503,868 $502,020 $502,020 $543,928 $41,908 8.3% 52106-Physical/Psychological Exams $1,550 $2,400 $2,300 $2,400 $0 0% 52108-Background Investigations $495 $2,592 $2,715 $2,592 $0 0% 52109-Automotive Repair Services $142,180 $110,000 $110,000 $115,000 $5,000 4.5% 52201-Departmental Supplies $181,654 $239,595 $239,595 $197,455 -$42,140 -17.6% 52202-Office Supplies $2,423 $3,800 $2,800 $3,300 -$500 -13.2% 52203-Printing $312 $2,250 $2,250 $2,250 $0 0% 52204-Postage $197 $174 $174 $174 $0 0% 52205-Uniforms/Safety Equipment $139,159 $273,625 $276,125 $167,575 -$106,050 -38.8% 52207-Tools & Minor Equipment $7,216 $15,000 $15,000 $10,000 -$5,000 -33.3% 52301-Training, Conf & Meetings $50,315 $94,675 $94,675 $96,475 $1,800 1.9% 52304-Employee Awards & Events $4,790 $4,000 $5,000 $5,200 $1,200 30% 52307-Memberships & Dues $2,975 $6,825 $6,825 $6,875 $50 0.7% 52308-Reference Books & Periodicals $2,424 $7,120 $7,120 $6,520 -$600 -8.4% 53101-Telephone $15,062 $14,860 $15,500 $15,734 $874 5.9% 53102-Electricity $249,018 $171,661 $235,000 $270,041 $98,380 57.3% 53103-Natural Gas $14,331 $13,377 $14,000 $14,210 $833 6.2% 53104-Water $17,257 $12,698 $20,000 $14,579 $1,881 14.8% 53105 Postage Allocation $0 $0 $0 $182 $182 N/A Total Materials & Services:$2,006,924 $2,141,155 $2,239,317 $2,246,330 $105,175 4.9% Internal Services Charge 54102-Warehouse Purchases $8,803 $6,300 $6,300 $6,100 -$200 -3.2% 54104-Information Systems Allocation $445,440 $522,858 $522,858 $643,377 $120,519 23.1% 54105-Insurance Allocation $271,832 $312,240 $312,240 $759,180 $446,940 143.1% 54106-Fleet Rental Allocation $394,596 $413,460 $413,460 $482,430 $68,970 16.7% 54107-Fleet Maintenance Allocation $61,972 $93,376 $93,376 $86,224 -$7,152 -7.7% 54108-Building & Ops Allocation $244,506 $240,078 $240,078 $264,076 $23,998 10% Total Internal Services Charge:$1,427,149 $1,588,312 $1,588,312 $2,241,387 $653,075 41.1% Capital Projects & Equipment 61201-Furniture & Fixtures $5,869 $5,500 $5,400 $3,000 -$2,500 -45.5% 61203-Computer Equipment & Software $0 $2,500 $2,500 $2,500 $0 0% 61401-Vehicles $0 $70,000 $70,091 $0 -$70,000 -100% 62201-Building & Facility Improv $2,185,366 $0 $23,334 $0 $0 0% Total Capital Projects & Equipment:$2,191,235 $78,000 $101,325 $5,500 -$72,500 -92.9% Debt Service 71101-Bond Principal $422,500 $440,000 $440,000 $455,000 $15,000 3.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 241 71102-Bond Interest $362,826 $344,231 $344,231 $324,907 -$19,324 -5.6% 71103-Bond Administration Fee $1,850 $2,750 $2,750 $2,750 $0 0% 71107-POB Miscellaneous Principal $6,395 $29,341 $6,454 $29,304 -$37 -0.1% 71108-POB Miscellaneous Interest $3,790 $17,005 $3,776 $16,513 -$492 -2.9% 71109-POB Safety Principal $755,000 $760,000 $760,000 $770,000 $10,000 1.3% 71110-POB Safety Interest $447,127 $441,289 $444,448 $432,976 -$8,313 -1.9% Total Debt Service:$1,999,488 $2,034,616 $2,001,659 $2,031,450 -$3,166 -0.2% Total Expense Objects:$20,428,046 $18,764,189 $20,829,967 $19,819,531 $1,055,342 5.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $17,455,503 $17,732,501 $19,782,258 $18,591,849 $859,348 4.8% Capital Improvement Fund $1,065,849 $786,981 $810,315 $782,657 -$4,324 -0.5% Bond Construction Fund $1,906,694 $0 $0 $0 $0 0% Section 115 Trust Fund $0 $244,707 $237,394 $445,025 $200,318 81.9% Total:$20,428,046 $18,764,189 $20,829,967 $19,819,531 $1,055,342 5.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 242 FIRE ADMINISTRATION PROGRAM OVERVIEW The Fire Administration Division, directed by the Fire Chief, plays a key role in supporting the department's functions. This Division is responsible for preparing and coordinating the department's budget, acting as a liaison with the Personnel Department on recruitment, promotion, and performance appraisals, and managing information technology systems and payroll functions. Additionally, the Division reviews, prepares, and presents staff reports to the department, City staff, and City officials. Staff from this Division also provide primary administrative support to the other divisions. This Division ensures effective leadership and support for all personnel, including through personnel services, training and development, procurement, budgetary control, strategic planning, volunteer programs, and emergency management for major local and regional incidents. Annual priorities are established in conjunction with the City Manager's office in order to maximize operational efficiencies. Fire Administration works closely with the Finance Department to minimize any fiscal impact to the community while simultaneously improving community services. The Fire Department continues to be the lead Department for emergency response training, including the federally mandated National Incident Management System (NIMS) and Standardized Emergency Management System (SEMS) training. Our Emergency Operations Center procedures will continue to be improved and updated. OBJECTIVES FY 2026 Serve as the Fire Department lead in the development and implementation of the Computer Aided Dispatch (CAD) build through Regional Communication Center. Upgrade Mobile Data Computer hardware to improve connectivity with the regional dispatch center. Enhance data collection methodologies to identify emergency service improvement opportunities. Continue to create diversity and inclusivity in the department and South Bay area. Find innovative methods of addressing the hiring and retention issue in the fire service. Provide leadership and direction to the Deputy Fire Chief, Division Chiefs, Fire Captains, and Fire Personnel. Improve cooperative interaction with other City stakeholders and existing agreements. Provide services that continue to reduce community risk for both fire and medical emergencies. Improve on the established 2025 comprehensive health and safety program in conjunction with the recommendations from the National Fire Protection Association 1500, 1581, 1582, and 1583. Provide peer support offering professional clinician services catering to mental health needs resulting from exposure to traumatic or stressful events. Partner with surrounding agencies to study opportunities to provide better customer service to South Bay cities. Carry-out cloud-cloud based Kronos (Telestaff) implementation processes, providing effective and efficient computer staffing ability. MAJOR SERVICE DELIVERY CHANGES Manhattan Beach Fire Department is working closely with our regional partners to develop the future CAD and regionalize through Alert SouthBay. Transition the department's Record Management System to the new National Emergency Response Information System, the national incident reporting system. Fulfilled Executive Assistant position. Enhance the wellness program to provide suppression staff with opportunities to improve overall physical and mental health. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 243 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Executive Assistant 1.00 1.00 1.00 Fire Chief 1.00 1.00 1.00 Fire Deputy Chief -1.00 1.00 Management Analyst 1.00 -- Senior Management Analyst -1.00 1.00 3.00 4.00 4.00 2,159 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 244 Salaries & Benefits (43.3%)Salaries & Benefits (43.3%)Salaries & Benefits (43.3%) Debt Service (29%)Debt Service (29%)Debt Service (29%) Internal Services Charge (16.4%)Internal Services Charge (16.4%)Internal Services Charge (16.4%) Materials & Services (11.2%)Materials & Services (11.2%)Materials & Services (11.2%) Capital Projects & Equipment (0.04%)Capital Projects & Equipment (0.04%)Capital Projects & Equipment (0.04%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $163,794 $174,976 $198,785 $190,248 $15,272 8.7% 51102-Sworn Employee Salaries $364,239 $490,181 $518,496 $594,401 $104,220 21.3% 51103-Part Time Employee Salaries $27,260 $54,063 $149,063 $54,456 $393 0.7% 51104-Overtime Regular Employees $0 $5,000 $5,000 $3,150 -$1,850 -37% 51201-Group Medical Insurance $85,460 $93,361 $116,314 $106,761 $13,400 14.4% 51202-Medicare $8,003 $10,429 $13,059 $12,169 $1,740 16.7% 51203-Medical Retirement Contrs $0 $0 $0 $6,336 $6,336 N/A 51204-401A Plan City $12,631 $16,032 $16,887 $18,301 $2,269 14.2% 51211-PERS Regular Contributions $16,221 $16,908 $17,289 $18,094 $1,186 7% 51212-PERS Sworn Contributions $78,769 $113,799 $113,557 $137,094 $23,295 20.5% 51213-PERS Regular Net Pension Liab $0 $10,804 $11,060 $19,648 $8,844 81.9% 51214-PERS Sworn Net Pension Liab $0 $233,903 $226,334 $425,377 $191,474 81.9% 51219-PERS Suppl Retire Pymt (415)$1,502 $8,590 $15,228 $8,590 $0 0% 51232-Workers Compensation $2,103,600 $1,995,900 $1,995,900 $1,443,960 -$551,940 -27.7% Total Salaries & Benefits:$2,861,480 $3,223,946 $3,396,972 $3,038,585 -$185,361 -5.7% Materials & Services 52101-Contract Services $61,770 $110,048 $110,048 $155,643 $45,595 41.4% 52103-Software Purchases and Subscriptions $7,590 $31,560 $31,560 $20,860 -$10,700 -33.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 245 EXPENDITURES BY TYPE 52105-SBRPCA Communications $503,868 $502,020 $502,020 $543,928 $41,908 8.3% 52106-Physical/Psychological Exams $1,550 $2,400 $2,300 $2,400 $0 0% 52108-Background Investigations $495 $2,592 $2,715 $2,592 $0 0% 52201-Departmental Supplies $7,434 $8,500 $8,500 $8,500 $0 0% 52202-Office Supplies $2,423 $3,800 $2,800 $3,300 -$500 -13.2% 52205-Uniforms/Safety Equipment $7,488 $6,600 $6,600 $8,200 $1,600 24.2% 52301-Training, Conf & Meetings $8,465 $11,700 $11,700 $13,450 $1,750 15% 52304-Employee Awards & Events $4,790 $4,000 $5,000 $5,200 $1,200 30% 52307-Memberships & Dues $2,445 $3,525 $3,525 $3,575 $50 1.4% 53101-Telephone $4,382 $4,052 $4,700 $4,771 $719 17.7% 53103-Natural Gas $12,522 $13,377 $13,000 $13,195 -$182 -1.4% Total Materials & Services:$625,221 $704,174 $704,468 $785,614 $81,440 11.6% Internal Services Charge 54102-Warehouse Purchases -$9 $500 $500 $300 -$200 -40% 54104-Information Systems Allocation $60,180 $76,425 $76,425 $94,238 $17,813 23.3% 54105-Insurance Allocation $271,832 $312,240 $312,240 $759,180 $446,940 143.1% 54106-Fleet Rental Allocation $0 $11,890 $11,890 $24,800 $12,910 108.6% 54107-Fleet Maintenance Allocation $4,818 $6,654 $6,654 $8,267 $1,613 24.2% 54108-Building & Ops Allocation $244,506 $240,078 $240,078 $264,076 $23,998 10% Total Internal Services Charge:$581,328 $647,787 $647,787 $1,150,861 $503,074 77.7% Capital Projects & Equipment 61201-Furniture & Fixtures $5,869 $5,500 $5,400 $3,000 -$2,500 -45.5% 61401-Vehicles $0 $70,000 $70,091 $0 -$70,000 -100% 62201-Building & Facility Improv $2,185,366 $0 $23,334 $0 $0 0% Total Capital Projects & Equipment:$2,191,235 $75,500 $98,825 $3,000 -$72,500 -96% Debt Service 71101-Bond Principal $422,500 $440,000 $440,000 $455,000 $15,000 3.4% 71102-Bond Interest $362,826 $344,231 $344,231 $324,907 -$19,324 -5.6% 71103-Bond Administration Fee $1,850 $2,750 $2,750 $2,750 $0 0% 71107-POB Miscellaneous Principal $6,395 $29,341 $6,454 $29,304 -$37 -0.1% 71108-POB Miscellaneous Interest $3,790 $17,005 $3,776 $16,513 -$492 -2.9% 71109-POB Safety Principal $755,000 $760,000 $760,000 $770,000 $10,000 1.3% 71110-POB Safety Interest $447,127 $441,289 $444,448 $432,976 -$8,313 -1.9% Total Debt Service:$1,999,488 $2,034,616 $2,001,659 $2,031,450 -$3,166 -0.2% Total Expense Objects:$8,258,752 $6,686,023 $6,849,711 $7,009,510 $323,487 4.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $5,286,209 $5,654,335 $5,802,002 $5,781,828 $127,493 2.3% Capital Improvement Fund $1,065,849 $786,981 $810,315 $782,657 -$4,324 -0.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 246 Bond Construction Fund $1,906,694 $0 $0 $0 $0 0% Section 115 Trust Fund $0 $244,707 $237,394 $445,025 $200,318 81.9% Total:$8,258,752 $6,686,023 $6,849,711 $7,009,510 $323,487 4.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 247 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 248 FIRE OPERATIONS PROGRAM OVERVIEW The Fire Operations Division, responsible for providing emergency fire apparatus, equipment, and trained personnel, works to protect the citizens and visitors of Manhattan Beach. As an all-risk department, the Manhattan Beach Fire Department (MBFD) responds to emergencies such as fire suppression, medical services, vehicle accidents, entrapments, ocean rescues, technical rescues, and hazardous conditions. The Emergency Operations Division, directed by the Deputy Fire Chief, includes the personnel, resources, and equipment that respond to fire, rescue, and medical aid calls. This Division also manages employee continuing education and training in coordination with the Training Division. Additionally, the Emergency Operations Division oversees the management of fire aspects of the dispatch center, acting as a liaison with state, regional, local, and third-party entities involved in emergency operations. MBFD also engages in resource sharing through auto/mutual aid, including deployments to surrounding jurisdictions and wildland fires across California. In 2024, Manhattan Beach Firefighters responded to 3,720 emergency calls for service. The Operations Division has implemented numerous programs, platforms, and processes this past year to better serve the organization, the City, and the citizens of Manhattan Beach. Eight firefighters were hired and went through an internal training academy bringing the division up to full staffing with the addition of a second Rescue Ambulance. Multiple internal department programs were organized and assigned a program manager from the suppression personnel across the organization. This process continues to provide a coordinator who oversees the administrative and managerial aspects of our programs, providing better oversight and application of the required performance measures, outcomes, and budgetary allocations. The training division was assigned a new program manager identified as the department Training Captain, a shift Fire Captain Paramedic, to aid in the oversight and continued development of the division at the direction of the Training Chief. The Training Captain will continue to focus on third-party mandated requirements in the areas of firefighting, emergency medical services, specialty incidents, technical skills, and leadership. Cumulatively, Fire personnel completed 8,380 hours of training and professional development this past year. OBJECTIVES FY 2026 Maintain a high level of operational readiness for emergency response. Implement succession training and development at all ranks. Continue to progress on the automatic/mutual aid agreements with adjacent jurisdictions. Meet or exceed adopted response standards for the first arriving suppression unit to a fire call as outlined in the National Fire Protection Association consensus documents. Ensure reliability and maintenance of all fire department vehicles and equipment. Continue to meet the training standards of NFPA, OSHA, federal, state, regional, and local governments. MAJOR SERVICE DELIVERY CHANGES Fulfill a cooperative two-year training plan following industry standards and best practices with surrounding jurisdictions. Interoperability Network of the South Bay – MBFD will work with Area G partners to develop, implement and train on new policies and procedures for interoperability. In FY 2025 the department was overstaffed to maintain consistent, high-quality services for the community while accommodating personnel on long-term industrial disability leave. In FY 2026 the personnel numbers were adjusted to be consistent with the staffing plan approved by the City Council in February 2024. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Fire Captain/Paramedic 9.00 9.00 6.00 Fire Division Chief 1.00 1.00 1.00 Fire Engineer/Paramedic 6.00 6.00 6.00 Firefighter(/Paramedic)6.00 6.00 6.00 22.00 22.00 19.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 249 Salaries & Benefits (82.5%)Salaries & Benefits (82.5%)Salaries & Benefits (82.5%) Materials & Services (9.2%)Materials & Services (9.2%)Materials & Services (9.2%) Internal Services Charge (8.3%)Internal Services Charge (8.3%)Internal Services Charge (8.3%) Expense Objects Salaries & Benefits 51102-Sworn Employee Salaries $4,099,228 $3,481,307 $3,515,799 $3,575,935 $94,628 2.7% 51105-Overtime Sworn Employees $1,041,734 $1,234,149 $1,700,000 $1,271,224 $37,075 3% 51106-Overtime Mutual Aid $31,881 $150,024 $600,000 $150,024 $0 0% 51107-Overtime Special Events $12,848 $26,325 $26,325 $27,115 $790 3% 51109-OT Training & Special Detail $180,897 $85,428 $85,428 $87,993 $2,565 3% 51201-Group Medical Insurance $540,797 $479,744 $532,569 $490,403 $10,659 2.2% 51202-Medicare $71,675 $50,479 $69,178 $51,851 $1,372 2.7% 51204-401A Plan City $5,856 $5,411 $10,395 $5,813 $402 7.4% 51212-PERS Sworn Contributions $912,811 $793,826 $900,559 $804,253 $10,427 1.3% Total Salaries & Benefits:$6,897,727 $6,306,693 $7,440,253 $6,464,611 $157,918 2.5% Materials & Services 52101-Contract Services $36,089 $69,700 $69,700 $58,400 -$11,300 -16.2% 52103-Software Purchases and Subscriptions $0 $0 $0 $8,000 $8,000 N/A 52109-Automotive Repair Services $142,180 $110,000 $110,000 $115,000 $5,000 4.5% 52201-Departmental Supplies $34,287 $39,395 $39,395 $32,905 -$6,490 -16.5% 52203-Printing $0 $400 $400 $400 $0 0% 52204-Postage $197 $174 $174 $174 $0 0% 52205-Uniforms/Safety Equipment $121,990 $253,450 $253,450 $141,450 -$112,000 -44.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 250 EXPENDITURES BY TYPE 52207-Tools & Minor Equipment $7,216 $15,000 $15,000 $10,000 -$5,000 -33.3% 52301-Training, Conf & Meetings $37,050 $45,000 $45,000 $60,000 $15,000 33.3% 52308-Reference Books & Periodicals $0 $1,500 $1,500 $1,500 $0 0% 53101-Telephone $10,350 $10,355 $10,500 $10,658 $303 2.9% 53102-Electricity $249,018 $171,661 $235,000 $270,041 $98,380 57.3% 53103-Natural Gas $1,809 $0 $1,000 $1,015 $1,015 N/A 53104-Water $17,257 $12,698 $20,000 $14,579 $1,881 14.8% 53105 Postage Allocation $0 $0 $0 $182 $182 N/A Total Materials & Services:$657,443 $729,333 $801,119 $724,304 -$5,029 -0.7% Internal Services Charge 54102-Warehouse Purchases $8,811 $5,800 $5,800 $5,800 $0 0% 54104-Information Systems Allocation $264,888 $242,323 $242,323 $297,838 $55,515 22.9% 54106-Fleet Rental Allocation $204,576 $211,330 $211,330 $314,170 $102,840 48.7% 54107-Fleet Maintenance Allocation $23,280 $31,689 $31,689 $30,993 -$696 -2.2% Total Internal Services Charge:$501,555 $491,142 $491,142 $648,801 $157,659 32.1% Total Expense Objects:$8,056,725 $7,527,168 $8,732,514 $7,837,716 $310,548 4.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $8,056,725 $7,527,168 $8,732,514 $7,837,716 $310,548 4.1% Total General Fund:$8,056,725 $7,527,168 $8,732,514 $7,837,716 $310,548 4.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 251 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 252 COMMUNITY RISK REDUCTION PROGRAM OVERVIEW The main function of the Community Risk Reduction Division (CRR) is to provide for public safety through the application of laws and regulations related to fire prevention, life safety, fire protection systems, building construction and protection. Our role is accomplished by performing annual business inspections, plan checks, construction inspections, state-mandated inspections, fire code-required inspections and all manner of public safety requirements. For everything from special effects for film and television to large special events such as the Holiday Fireworks Show, CRR is here to ensure a safe environment to live, work, and play. The Community Risk Reduction Division continues to experience ever higher demands for construction inspections, Fire Code-required inspections, and State-Mandated life safety inspections. Community Risk Reduction proposes to meet these demands by maintaining a dedicated professional civilian fire prevention staff consisting of a Fire Marshal, a full-time Sr. Fire Inspector, a full-time Fire Inspector, and up to four (4) part-time apprentice inspectors. The Manhattan Beach Studios Media Campus (MBSMC) operates fourteen sound stages, a mill and other supporting infrastructure in the City of Manhattan Beach. The motion picture industry has a constant impact on the CRR due to tenant turnover and the unique character of the film business. Staff, in partnership with MBSMC employees, work closely with production companies on a daily basis to ensure that even the most unbelievable special effects are safe and compliant with Fire and Public Safety Codes and watched over by Fire Safety Officers when needed. The CRR team is dedicated to fulfilling all State-Mandated and Annual Business Fire Inspections each year. In addition to completing the annual inspection programs, CRR staff continues to conduct new construction inspections to keep up with the pace of development within the city. And with the professional capabilities of the civilian staff, fire-code plan reviews are now being conducted in-house to better serve the development community and our homeowners. OBJECTIVES FY 2026 Complete all State-Mandated and Operational Permit Required inspections. Implement revised fee schedule and bill for annual inspections (target 100%). Complete electronic plan review submittals within 10 days (target 90%). Schedule and initiate new construction inspections within 24-hours (target 90%). Continue implementation of new paperless Fire inspection software (First Due). Meet State Mandated Inspection requirements, including apartment building inspections. MAJOR SERVICE DELIVERY CHANGES Draft and implement updates and amendments for the 2026 fire code cycle. Coordinate with the Building Division to enhance service delivery of plan reviews and inspections of residential solar and battery systems per State requirements. Create, enhance, and maintain all prevention policies and procedures. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Fire Inspector 2.00 1.00 1.00 Fire Marshal 1.00 1.00 1.00 Senior Fire Inspector -1.00 1.00 3.00 3.00 3.00 1,796 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 253 Salaries & Benefits (71.7%)Salaries & Benefits (71.7%)Salaries & Benefits (71.7%) Internal Services Charge (15.5%)Internal Services Charge (15.5%)Internal Services Charge (15.5%) Materials & Services (12.8%)Materials & Services (12.8%)Materials & Services (12.8%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $358,118 $356,216 $368,001 $335,997 -$20,219 -5.7% 51103-Part Time Employee Salaries $28,808 $34,969 $34,969 $36,010 $1,041 3% 51104-Overtime Regular Employees $0 $8,820 $8,820 $7,085 -$1,735 -19.7% 51105-Overtime Sworn Employees $1,480 $4,620 $4,620 $0 -$4,620 -100% 51108-Overtime Cooperative Resources $0 $20,068 $20,068 $0 -$20,068 -100% 51201-Group Medical Insurance $38,676 $37,395 $60,974 $61,792 $24,397 65.2% 51202-Medicare $5,546 $5,672 $5,980 $5,395 -$277 -4.9% 51204-401A Plan City $7,980 $7,294 $7,230 $6,093 -$1,201 -16.5% 51211-PERS Regular Contributions $35,012 $34,200 $33,856 $35,451 $1,251 3.7% Total Salaries & Benefits:$475,621 $509,254 $544,518 $487,823 -$21,431 -4.2% Materials & Services 52101-Contract Services $43,520 $83,350 $80,850 $46,700 -$36,650 -44% 52103-Software Purchases and Subscriptions $0 $0 $0 $17,290 $17,290 N/A 52201-Departmental Supplies $1,319 $1,500 $1,500 $500 -$1,000 -66.7% 52203-Printing $312 $300 $300 $300 $0 0% 52205-Uniforms/Safety Equipment $4,193 $5,775 $8,275 $4,025 -$1,750 -30.3% 52301-Training, Conf & Meetings $1,965 $13,100 $13,100 $10,100 -$3,000 -22.9% 52307-Memberships & Dues $530 $2,800 $2,800 $2,800 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 254 EXPENDITURES BY TYPE 52308-Reference Books & Periodicals $2,424 $5,020 $5,020 $5,020 $0 0% 53101-Telephone $99 $136 $100 $102 -$34 -25% Total Materials & Services:$54,360 $111,981 $111,945 $86,837 -$25,144 -22.5% Internal Services Charge 54104-Information Systems Allocation $36,024 $38,212 $38,212 $47,119 $8,907 23.3% 54106-Fleet Rental Allocation $25,776 $26,000 $26,000 $29,580 $3,580 13.8% 54107-Fleet Maintenance Allocation $20,133 $26,617 $26,617 $28,671 $2,054 7.7% Total Internal Services Charge:$81,933 $90,829 $90,829 $105,370 $14,541 16% Total Expense Objects:$611,914 $712,064 $747,292 $680,030 -$32,034 -4.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $611,914 $712,064 $747,292 $680,030 -$32,034 -4.5% Total General Fund:$611,914 $712,064 $747,292 $680,030 -$32,034 -4.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 255 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 256 EMERGENCY MEDICAL SERVICES PROGRAM OVERVIEW Nearly 58 percent of the Department's responses are requests for emergency medical assistance. All Firefighters, Fire Engineers and Fire Captains are licensed Paramedics. They provide Emergency Medical Services to all residents and visitors in need of emergency care. The Emergency Medical Services (EMS) Division supports our highly skilled personnel by pursuing innovation, training and continuous quality improvement. The EMS Division acts as a liaison between our Medical Director, Nurse Educator, LA County EMS Authority, LA County Health Services, other fire departments, and area hospitals to ensure we are all in compliance with and advise on all new State and County policies, laws, ordinances, regulations, and procedure changes. The EMS Division is currently working to update and create new policy to better protect our workforce. We are also securing long-term contracts with our outside vendors to create stability and help with future planning. The EMS Division is currently working with different Training Divisions from Area G to set up hands-on Mass Casualty Incident (M.C.I.) and Unified Response to a Violent Incident training and how we can better our EMS response. OBJECTIVES FY 2026 Assess our current delivery model for opportunities to increase efficiency of patient transportation and unit availability with the additional paramedic unit. Create a shared agreement with other Area G cities to share cost and receive a discount on medical supplies. Meet or exceed standards for on-scene and transport times for trauma, stroke and STEMI patients. Meet or exceed adopted response standards for first arriving Paramedic to a medical emergency as outlined in the National Fire Protection Association consensus documents. Continue to pursue improvements in service delivery through technology, training and innovation. Train and Implement a Designated Infection Control Officer. Transition to a new Nurse Educator following retirement of the current personnel. Monitor the success of the additional paramedic unit. MAJOR SERVICE DELIVERY CHANGES The Fire Department expanded its Emergency Medical Services by insourcing the majority of ambulance transports, which further expanded public safety staffing and capabilities in the provision of emergency services. This program is intended to increase internal oversight of the quality and efficiency of the response to emergency calls, expand sworn staffing to provide more depth in responding to Fire suppression activities, and increase cost recovery for emergency transportation services by billing for a higher level of service and faster turnaround time on transports due to insourcing. During the FY 2025, the Fire Department hired eight new firefighters in order to staff the additional rescue ambulance to improve service and transportation needs. The Department also purchased a new narcotics locker for better inventory management. As a result of these accomplishments, the department will work to expand the PSTrax platform to include the rescue units and paramedic narcotics tracking. PSTrax is designed to help fire and EMS organizations manage logistics, equipment, and inventory. The FY 2026 budget also includes funding for the upgrade and modernization of cardiac monitoring equipment. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Fire Division Chief 1.00 1.00 1.00 Firefighter(/Paramedic)6.00 9.00 12.00 7.00 10.00 13.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 257 Salaries & Benefits (76.1%)Salaries & Benefits (76.1%)Salaries & Benefits (76.1%) Materials & Services (14.5%)Materials & Services (14.5%)Materials & Services (14.5%) Internal Services Charge (9.4%)Internal Services Charge (9.4%)Internal Services Charge (9.4%) Expense Objects Salaries & Benefits 51102-Sworn Employee Salaries $1,185,697 $1,511,644 $1,871,162 $1,781,808 $270,164 17.9% 51105-Overtime Sworn Employees $404,636 $314,798 $414,798 $324,242 $9,444 3% 51107-Overtime Special Events $3,037 $5,904 $5,904 $0 -$5,904 -100% 51109-OT Training & Special Detail $18,996 $24,600 $24,600 $25,338 $738 3% 51201-Group Medical Insurance $185,648 $225,770 $280,369 $288,518 $62,748 27.8% 51202-Medicare $22,451 $21,919 $23,396 $25,836 $3,917 17.9% 51204-401A Plan City $5,856 $5,411 $6,219 $5,743 $332 6.1% 51212-PERS Sworn Contributions $209,081 $239,980 $315,856 $283,919 $43,939 18.3% Total Salaries & Benefits:$2,035,403 $2,350,026 $2,942,304 $2,735,404 $385,378 16.4% Materials & Services 52101-Contract Services $464,700 $278,765 $305,000 $396,715 $117,950 42.3% 52103-Software Purchases and Subscriptions $0 $0 $0 $11,000 $11,000 N/A 52201-Departmental Supplies $90,263 $90,400 $90,400 $91,000 $600 0.7% 52205-Uniforms/Safety Equipment $4,911 $7,200 $7,200 $13,300 $6,100 84.7% 52301-Training, Conf & Meetings $0 $5,000 $5,000 $8,000 $3,000 60% 52307-Memberships & Dues $0 $500 $500 $500 $0 0% 52308-Reference Books & Periodicals $0 $600 $600 $0 -$600 -100% Total Materials & Services:$559,874 $382,465 $408,700 $520,515 $138,050 36.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 258 EXPENDITURES BY TYPE Internal Services Charge 54104-Information Systems Allocation $84,348 $165,898 $165,898 $204,182 $38,284 23.1% 54106-Fleet Rental Allocation $164,244 $164,240 $164,240 $113,880 -$50,360 -30.7% 54107-Fleet Maintenance Allocation $13,741 $28,416 $28,416 $18,293 -$10,123 -35.6% Total Internal Services Charge:$262,333 $358,554 $358,554 $336,355 -$22,199 -6.2% Total Expense Objects:$2,857,610 $3,091,045 $3,709,558 $3,592,274 $501,229 16.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $2,857,610 $3,091,045 $3,709,558 $3,592,274 $501,229 16.2% Total General Fund:$2,857,610 $3,091,045 $3,709,558 $3,592,274 $501,229 16.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 259 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 260 SUPPORT SERVICES PROGRAM OVERVIEW The Support Services Division encompasses Emergency Preparedness, Community Emergency Response Team (CERT), Communications, and Public Education. Basic training in the National Incident Management System (NIMS), a federally mandated program, is provided to all City employees to properly respond to the needs of the citizens in the event of a major emergency. Support Services utilizes the whole community approach to deliver comprehensive information on earthquake, tsunami, and other natural and man-made hazards. This promotes emergency preparedness and resiliency in the community for any emergency situation. Throughout the year, the Support Services Division creates opportunities to train citizens in Emergency Preparedness and response through the MB CERT Association, Map Your Neighborhood, and other preparedness activities. The MBFD and Emergency Preparedness Administrator led the update of the City’s Local Hazard Mitigation Plan (LHMP). The LHMP supports the community and infrastructure in becoming more resilient and less susceptible to damage from natural hazards. The City is grateful for the strong and engaged participation by the LHMP Committee which included stakeholders from the community, local businesses, nonprofit and faith based organizations, as well as representatives from City departments. The Committee met four times to assess and update the City's current LHMP. The LHMP process addressed vulnerabilities and developed short and long-term mitigation strategies to protect the community of Manhattan Beach. Beyond the meetings, the Committee and the public completed surveys and questionnaires related to hazard mitigation. These stakeholder responses assisted in the understanding of the needs and preferences of the community. The LHMP update was approved by CalOES/ FEMA, and adopted by the City Council. OBJECTIVES FY 2026 Perform Emergency Operations Center training exercises in partnership with the MB EOC Committee, MB Staff, Disaster Management Area G Coordinator, and MB CERT Association. Exercise the EOP with City staff and EOC personnel. Assist all City employees with the completion of required Disaster Service Workers training (ICS 100, ICS 700, and G606). Refine Everbridge Mass Notification System (Alert SouthBay) for emergency announcements and public notifications. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 261 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 262 MAJOR SERVICE DELIVERY CHANGES The FY 2026 budget includes funding to enhance our PSTrax software to automate building maintance and safety inspections to meet recommendations of the city's safety committee. The process covers both fire stations and fire department headquarters to ensure the buildings remain OSHA compliant. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Emergency Preparedness Administrator 1.00 1.00 1.00 Fire Division Chief 1.00 1.00 1.00 2.00 2.00 2.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 263 Salaries & Benefits (81.2%)Salaries & Benefits (81.2%)Salaries & Benefits (81.2%) Materials & Services (18.4%)Materials & Services (18.4%)Materials & Services (18.4%) Capital Projects & Equipment (0.4%)Capital Projects & Equipment (0.4%)Capital Projects & Equipment (0.4%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $118,392 $115,579 $121,836 $126,512 $10,933 9.5% 51102-Sworn Employee Salaries $262,846 $236,290 $284,344 $259,751 $23,461 9.9% 51105-Overtime Sworn Employees $26,195 $61,192 $61,192 $57,062 -$4,130 -6.7% 51201-Group Medical Insurance $35,983 $37,599 $36,941 $37,317 -$282 -0.8% 51202-Medicare $5,498 $5,102 $6,346 $5,601 $499 9.8% 51204-401A Plan City $11,146 $10,371 $9,880 $11,113 $742 7.2% 51211-PERS Regular Contributions $11,696 $11,204 $11,809 $12,006 $802 7.2% 51212-PERS Sworn Contributions $61,263 $54,850 $42,959 $59,079 $4,229 7.7% Total Salaries & Benefits:$533,019 $532,187 $575,307 $568,441 $36,254 6.8% Materials & Services 52101-Contract Services $58,031 $91,060 $91,060 $57,232 -$33,828 -37.1% 52201-Departmental Supplies $48,351 $99,800 $99,800 $64,550 -$35,250 -35.3% 52203-Printing $0 $1,550 $1,550 $1,550 $0 0% 52205-Uniforms/Safety Equipment $577 $600 $600 $600 $0 0% 52301-Training, Conf & Meetings $2,835 $19,875 $19,875 $4,925 -$14,950 -75.2% 53101-Telephone $231 $317 $200 $203 -$114 -36% Total Materials & Services:$110,026 $213,202 $213,085 $129,060 -$84,142 -39.5% Capital Projects & Equipment Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 264 EXPENDITURES BY TYPE 61203-Computer Equipment & Software $0 $2,500 $2,500 $2,500 $0 0% Total Capital Projects & Equipment:$0 $2,500 $2,500 $2,500 $0 0% Total Expense Objects:$643,045 $747,889 $790,892 $700,001 -$47,888 -6.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $643,045 $747,889 $790,892 $700,001 -$47,888 -6.4% Total General Fund:$643,045 $747,889 $790,892 $700,001 -$47,888 -6.4% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 265 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 266 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 268 MISSION The Community Development Department strives to create a livable, resilient, and sustainable City by enhancing and guiding our community’s neighborhoods, environment, and commercial areas through planning, building supervision, code enforcement, traffic engineering and environmental sustainability. DEPARTMENT OVERVIEW The Department continually strives to develop and implement long-term plans and policies to further the mobility and livability of the City, while also providing customer service to residents and businesses. With continued and steady building activity throughout the City, the Planning and Building and Safety Divisions work hand-in-hand through the development review process to provide high-quality and seamless service to the development community. Dedicated staff members strive to keep the community and construction process safe, and up-to-code, through plan review, building plan checks, permitting, and inspections. Additionally, the Building and Safety Division’s Code Enforcement Program enforces City regulations, building codes and environmental regulations to protect the City’s livability. This includes proactively educating residents and the building community about construction rules and regulations. The Planning Division is active in keeping up with changing State legislation pertaining to housing, other land use laws, environmental reviews and advises property owners, real estate professionals, and business owners on zoning and land use regulations. The Environmental Sustainability Division guides and implements sustainability policies and programs through science and stewardship to protect the environment while creating a healthy and resilient community. The Traffic Engineering Division endeavors to keep the mobility network safe and flowing through transportation planning and creating living streets for all modes of transport. With sustained development and building activity, construction is expected to remain stable for FY 2026. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 269 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 270 RECENT ACCOMPLISHMENT HIGHLIGHTS ADMINISTRATION Filled seven full-time and two part-time vacancies and promoted three employees within the department. Digitized 147,570 pages of records resulting in the destruction of 226 boxes of stored records. PLANNING DIVISION Processed approximately 280 Planning applications (Use Permits, Minor Exceptions, Coastal Development Permits, etc.). Brought approximately 20 private development projects to the Planning Commission for consideration. Conducted two task force meetings, one community workshop, and one City Council Study Session in support of the long-term dining program. Conducted environmental reviews and ensured CEQA compliance for various City projects including the demolition of Parking Lot 3. Processed amendments to the MBMC and MB LCP to implement five programs included in the City's Housing Element. Prepared a robust website and conducted a community forum to provide information to the public related to the Residential Overlay District. BUILDING AND SAFETY DIVISION Oversaw building permit and construction activity, including issuance of approximately 1,900 building permits and performing 16,000 building inspections. Developed and implemented Solar App+; designed as a complete solution to streamline residential solar permit processing. Created and filled a Plans Examiner position to aid in assisting customers over the counter. Approved agreements with four additional plan check vendors to provide contract plan check services to decrease turnaround times. Improved Energov data output for efficiency in researching recurring reports with the assistance of the Information Technology Department. Continued to work with Information Technology to improve efficiencies, provide added capabilities and address instabilities in the existing permitting software. Updated online forms and handouts and refreshed the Division’s web page to improve the information available to the public. CODE ENFORCEMENT SECTION Certified one Code Enforcement Officer. Filled and trained a full-time Code Enforcement Officer. Filled the Code Enforcement Supervisor position. Updated the Standard Operating Procedures and workflow. Managed the sidewalk dining enforcement. Upgraded the Construction meeting notification process to achieve operational efficiencies and cost savings. Performed an audit on all open code cases and closed or updated case status as required. Opened approximately 685 new Code Enforcement cases, and closed approximately 770 Code Enforcement cases. TRAFFIC ENGINEERING DIVISION Demolition of Parking Lot 3 and related actions, including adding 90 additional parking spaces in the Downtown area. Administered and managed a Summertime Shuttle service and a Holiday Fireworks Event Shuttle service during the closure of Parking Lot 3. Adopted an oversize Vehicle Parking Ordinance and implemented a parking permit program. Initiated a City Parking Study for Downtown and North End business districts. Implemented traffic calming measures on Valley Drive near Oak Avenue. Reviewed and issued over 1,000 right-of-way permits for construction, parking, deliveries, cranes, materials storage, PODs, refuse bins and other public street uses. Provided monitoring and oversight for traffic-related conditions during the Manhattan Village Mall Enhancement and Expansion and Skechers Headquarters construction projects. Assisted Public Works Engineering in providing traffic engineering oversight for several road improvements and traffic signal projects. ENVIRONMENTAL SUSTAINABILITY DIVISION Certified 10 local businesses that met the California Green Business Network sustainability requirements. Hosted and/or attended five educational outreach events throughout the community promoting the City's sustainability efforts. Obtained Gold Level Achievement recognition award for the 2024 South Bay Energy and Climate Ready Program. Hosted a Sustainability Forum to give the community an opportunity to identify and prioritize sustainability efforts. Amended the Local Coastal Plan (LCP) to include a Coastal Hazards chapter that includes a Sea Level Rise Vulnerability Assessment and Adaptation Plan. The LCP amendment was certified by the Coastal Commission in February 2024. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 271 PERFORMANCE MEASURES CUSTOMER INQUIRIES SERVED IN A TIMELY MANNER PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 85%97%97%95% BUILDING AND PLANNING SERVICES TURNAROUND TIME PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 54%69%75%75% BUILDING INSPECTIONS COMPLETED BY NEXT BUSINESS DAY PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 100%100%100%95% CODE ENFORCEMENT SERVICE REQUESTS REVIEWED WITHIN TWO DAYS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 100%99%95%95% CITIZEN TRAFFIC AND PARKING REQUESTS REVIEWED WITHIN 10 DAYS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 96%98%100%95% The department served approximately 20,000 customers in Fiscal Year 2024-2025. The department strives to serve customers at the public counter, by walk-in and individual appointment, as well as via phone calls within 10 minutes. The service time for email inquiries and return phone calls is one business day. This serves as initial contact for zoning standards, building code, code enforcement reports, Public Records Act requests, and other services, which are all counted within this metric. The department reviews applications and plan checks for various projects throughout the City. The Planning Division’s goal is to review discretionary applications for completeness within 30 days which is a State requirement. The Building Division’s goal is to complete major plan checks within six weeks (average) and minor plan checks (such as re-roofs, window change outs, solar systems, electric vehicle chargers, etc.) within two business days. Construction projects within the City require numerous inspections. All inspections that are submitted on a business day prior to 3:00 PM are scheduled for inspection the next business day. Code Enforcement staff are responsible for ensuring compliance with construction rules, the Municipal Code and applicable regulations to maintain a safe and healthy community. New requests are expected to be reviewed and acknowledged within two days of receipt, after which staff performs more in-depth work to gain compliance. The Traffic Engineering Division receives traffic and parking requests for various traffic improvements throughout the City. These requests include, but are not limited to, stop sign requests, crosswalks, red curbs, disabled parking spaces, adding and removing traffic signs, street striping, permit parking, and loading zones. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 272 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 273 DEPARTMENT EXPENDITURES BY PROGRAM Building & Safety (43.5%)Building & Safety (43.5%)Building & Safety (43.5%) Planning (21.7%)Planning (21.7%)Planning (21.7%) Community Development Admin (16.4%)Community Development Admin (16.4%)Community Development Admin (16.4%) Code Enforcement (9.1%)Code Enforcement (9.1%)Code Enforcement (9.1%) Traffic Engineering (6.4%)Traffic Engineering (6.4%)Traffic Engineering (6.4%) Environmental Programs (2.8%)Environmental Programs (2.8%)Environmental Programs (2.8%) Expenditures Community Development Community Development Admin $1,247,836 $1,344,773 $1,392,238 $1,460,696 $115,923 8.6% Total Community Development Admin:$1,247,836 $1,344,773 $1,392,238 $1,460,696 $115,923 8.6% Planning $1,862,055 $1,844,250 $1,863,917 $1,927,493 $83,243 4.5% Total Planning:$1,862,055 $1,844,250 $1,863,917 $1,927,493 $83,243 4.5% Building & Safety Plan Check $1,881,993 $2,270,984 $2,439,479 $2,437,762 $166,778 7.3% Inspection $1,223,250 $1,376,169 $1,349,935 $1,435,764 $59,595 4.3% Total Building & Safety:$3,105,243 $3,647,153 $3,789,414 $3,873,526 $226,373 6.2% Code Enforcement $720,297 $746,776 $734,319 $813,568 $66,792 8.9% Total Code Enforcement:$720,297 $746,776 $734,319 $813,568 $66,792 8.9% Traffic Engineering $490,236 $490,570 $581,513 $571,435 $80,865 16.5% Total Traffic Engineering:$490,236 $490,570 $581,513 $571,435 $80,865 16.5% Environmental Programs $195,750 $221,600 $205,625 $301,010 $79,410 35.8% Total Environmental Programs:$195,750 $221,600 $205,625 $301,010 $79,410 35.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 274 Total Community Development:$7,621,417 $8,295,122 $8,567,026 $8,947,728 $652,606 7.9% Total Expenditures:$7,621,417 $8,295,122 $8,567,026 $8,947,728 $652,606 7.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 275 SCHEDULE OF EXPENDITURE DETAIL Salaries & Benefits (62.1%)Salaries & Benefits (62.1%)Salaries & Benefits (62.1%) Materials & Services (22.6%)Materials & Services (22.6%)Materials & Services (22.6%) Internal Services Charge (11.9%)Internal Services Charge (11.9%)Internal Services Charge (11.9%) Debt Service (3.2%)Debt Service (3.2%)Debt Service (3.2%) Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $3,378,373 $3,890,939 $3,658,298 $4,092,006 $201,067 5.2% 51103-Part Time Employee Salaries $82,298 $81,264 $74,600 $87,350 $6,086 7.5% 51104-Overtime Regular Employees $9,180 $32,993 $15,300 $32,611 -$382 -1.2% 51201-Group Medical Insurance $560,674 $628,862 $599,815 $655,415 $26,553 4.2% 51202-Medicare $49,032 $57,615 $50,888 $60,602 $2,987 5.2% 51203-Medical Retirement Contrs $0 $0 $0 $4,651 $4,651 N/A 51204-401A Plan City $61,040 $64,896 $60,048 $69,074 $4,178 6.4% 51211-PERS Regular Contributions $327,698 $375,213 $350,484 $393,252 $18,039 4.8% 51213-PERS Regular Net Pension Liab $0 $66,211 $57,593 $120,412 $54,201 81.9% 51231-Unemployment $2,208 $2,209 $2,209 $2,209 $0 0% 51232-Workers Compensation $17,280 $15,060 $15,060 $7,915 -$7,145 -47.4% Total Salaries & Benefits:$4,487,782 $5,215,262 $4,884,295 $5,525,497 $310,235 5.9% Materials & Services 52101-Contract Services $1,717,191 $1,582,055 $2,164,553 $1,761,576 $179,521 11.3% 52103-Software Purchases and Subscriptions $67,034 $64,514 $64,524 $69,877 $5,363 8.3% 52201-Departmental Supplies $9,091 $21,200 $21,000 $25,350 $4,150 19.6% 52202-Office Supplies $3,962 $5,500 $3,000 $5,500 $0 0% 52203-Printing $21,610 $21,450 $19,850 $20,900 -$550 -2.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 276 52204-Postage $8,281 $7,768 $7,768 $200 -$7,568 -97.4% 52205-Uniforms/Safety Equipment $5,660 $10,880 $11,200 $10,200 -$680 -6.2% 52206-Advertising $13,643 $16,500 $26,250 $16,250 -$250 -1.5% 52207-Tools & Minor Equipment $881 $1,000 $1,000 $1,000 $0 0% 52301-Training, Conf & Meetings $38,448 $100,200 $77,215 $96,870 -$3,330 -3.3% 52304-Employee Awards & Events $891 $2,000 $2,000 $2,000 $0 0% 52307-Memberships & Dues $7,668 $19,827 $19,872 $22,777 $2,950 14.9% 52308-Reference Books & Periodicals $4,167 $5,700 $5,600 $9,450 $3,750 65.8% 52801-Computers, Supplies & Software $39,983 $17,225 $18,166 $13,738 -$3,487 -20.2% 53101-Telephone $1,240 $2,116 $1,240 $1,260 -$856 -40.5% 53105 Postage Allocation $0 $0 $0 $8,059 $8,059 N/A Total Materials & Services:$1,939,752 $1,877,935 $2,443,238 $2,065,007 $187,072 10% Internal Services Charge 54102-Warehouse Purchases $1,137 $1,900 $1,900 $2,000 $100 5.3% 54104-Information Systems Allocation $406,800 $431,056 $431,056 $524,707 $93,651 21.7% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54106-Fleet Rental Allocation $42,168 $42,170 $56,348 $43,620 $1,450 3.4% 54107-Fleet Maintenance Allocation $52,451 $71,399 $71,399 $53,297 -$18,102 -25.4% 54108-Building & Ops Allocation $380,540 $373,647 $373,647 $410,998 $37,351 10% Total Internal Services Charge:$898,097 $939,072 $953,250 $1,061,082 $122,010 13% Capital Projects & Equipment 61201-Furniture & Fixtures $25,700 $7,000 $17,500 $11,000 $4,000 57.1% 61203-Computer Equipment & Software $2,475 $0 $0 $0 $0 0% Total Capital Projects & Equipment:$28,175 $7,000 $17,500 $11,000 $4,000 57.1% Debt Service 71107-POB Miscellaneous Principal $168,033 $161,980 $169,575 $182,373 $20,393 12.6% 71108-POB Miscellaneous Interest $99,577 $93,873 $99,168 $102,769 $8,896 9.5% Total Debt Service:$267,611 $255,853 $268,743 $285,142 $29,289 11.4% Total Expense Objects:$7,621,417 $8,295,122 $8,567,026 $8,947,728 $652,606 7.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $7,621,417 $8,228,911 $8,416,433 $8,801,990 $573,079 7% Prop. A Fund $0 $0 $87,000 $25,326 $25,326 N/A Measure M Fund $0 $0 $6,000 $0 $0 0% Section 115 Trust Fund $0 $66,211 $57,593 $120,412 $54,201 81.9% Total:$7,621,417 $8,295,122 $8,567,026 $8,947,728 $652,606 7.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 277 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 278 COMMUNITY DEVELOPMENT ADMINISTRATION PROGRAM OVERVIEW The Administration Division of the Community Development Department manages and provides operational support to the Planning, Building and Safety, Traffic Engineering, and Environmental Sustainability Divisions. Administration guides the Department's staff members and interns to ensure collaborative work internally among staff and externally with the public. Additionally, Administration oversees time cards, accounting, policy development, budget preparation and management, operational needs, communications, reporting, intra-departmental projects and studies, and supports the Planning Commission, Parking and Public Improvements Commission, and Board of Building Appeals. OBJECTIVES FY 2026 Continue to electronically digitize, organize and store all department files into OnBase Records Management System and Energov Permitting, and destruct physical records following digitization. Continue to assess, evaluate and improve departmental operations, processes and procedures. Continue to educate and train staff on efficient and effective customer service skills and techniques and supervisory skills. Continue to build and maintain personal interactions with residents, community stakeholders and organizations for meaningful civic engagement and outreach. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Analyst 0.50 0.50 0.50 Administrative Assistant -1.00 1.00 Community Development Director 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 3.50 4.50 4.50 1,404 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 279 Salaries & Benefits (59.9%)Salaries & Benefits (59.9%)Salaries & Benefits (59.9%)Debt Service (19.5%)Debt Service (19.5%)Debt Service (19.5%) Materials & Services (10.2%)Materials & Services (10.2%)Materials & Services (10.2%) Internal Services Charge (10%)Internal Services Charge (10%)Internal Services Charge (10%) Capital Projects & Equipment (0.4%)Capital Projects & Equipment (0.4%)Capital Projects & Equipment (0.4%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $496,628 $525,836 $456,782 $538,259 $12,423 2.4% 51103-Part Time Employee Salaries $47,435 $29,159 $45,000 $32,980 $3,821 13.1% 51104-Overtime Regular Employees $679 $909 $0 $808 -$101 -11.1% 51201-Group Medical Insurance $91,976 $105,389 $96,943 $89,326 -$16,063 -15.2% 51202-Medicare $7,873 $8,048 $6,623 $8,283 $235 2.9% 51203-Medical Retirement Contrs $0 $0 $0 $4,651 $4,651 N/A 51204-401A Plan City $16,002 $14,053 $9,185 $15,216 $1,163 8.3% 51211-PERS Regular Contributions $48,472 $50,515 $44,091 $54,188 $3,673 7.3% 51213-PERS Regular Net Pension Liab $0 $66,211 $57,593 $120,412 $54,201 81.9% 51231-Unemployment $2,208 $2,209 $2,209 $2,209 $0 0% 51232-Workers Compensation $17,280 $15,060 $15,060 $7,915 -$7,145 -47.4% Total Salaries & Benefits:$728,551 $817,389 $733,486 $874,247 $56,858 7% Materials & Services 52101-Contract Services $15,593 $18,200 $143,172 $21,000 $2,800 15.4% 52103-Software Purchases and Subscriptions $67,034 $64,514 $64,524 $69,877 $5,363 8.3% 52201-Departmental Supplies $8,394 $10,400 $10,200 $11,350 $950 9.1% 52202-Office Supplies $3,962 $5,500 $3,000 $5,500 $0 0% 52203-Printing $497 $1,950 $850 $1,400 -$550 -28.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 280 EXPENDITURES BY TYPE 52204-Postage $409 $387 $387 $200 -$187 -48.3% 52205-Uniforms/Safety Equipment $906 $1,980 $3,700 $1,500 -$480 -24.2% 52301-Training, Conf & Meetings $7,943 $28,400 $13,100 $24,250 -$4,150 -14.6% 52304-Employee Awards & Events $891 $2,000 $2,000 $2,000 $0 0% 52307-Memberships & Dues $375 $325 $400 $425 $100 30.8% 52308-Reference Books & Periodicals $63 $200 $100 $200 $0 0% 52801-Computers, Supplies & Software $11,234 $9,000 $9,941 $10,438 $1,438 16% 53101-Telephone $347 $890 $350 $355 -$535 -60.1% 53105 Postage Allocation $0 $0 $0 $402 $402 N/A Total Materials & Services:$117,648 $143,746 $251,724 $148,897 $5,151 3.6% Internal Services Charge 54102-Warehouse Purchases $861 $1,500 $1,500 $1,500 $0 0% 54104-Information Systems Allocation $55,356 $68,037 $68,037 $77,368 $9,331 13.7% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54108-Building & Ops Allocation $38,037 $37,348 $37,348 $41,082 $3,734 10% Total Internal Services Charge:$109,254 $125,785 $125,785 $146,410 $20,625 16.4% Capital Projects & Equipment 61201-Furniture & Fixtures $22,296 $2,000 $12,500 $6,000 $4,000 200% 61203-Computer Equipment & Software $2,475 $0 $0 $0 $0 0% Total Capital Projects & Equipment:$24,771 $2,000 $12,500 $6,000 $4,000 200% Debt Service 71107-POB Miscellaneous Principal $168,033 $161,980 $169,575 $182,373 $20,393 12.6% 71108-POB Miscellaneous Interest $99,577 $93,873 $99,168 $102,769 $8,896 9.5% Total Debt Service:$267,611 $255,853 $268,743 $285,142 $29,289 11.4% Total Expense Objects:$1,247,836 $1,344,773 $1,392,238 $1,460,696 $115,923 8.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,247,836 $1,278,562 $1,334,645 $1,340,284 $61,722 4.8% Section 115 Trust Fund $0 $66,211 $57,593 $120,412 $54,201 81.9% Total:$1,247,836 $1,344,773 $1,392,238 $1,460,696 $115,923 8.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 281 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 282 PLANNING PROGRAM OVERVIEW The Planning Division is responsible for reviewing all discretionary land use applications, including coastal permits, as well as developing policy and updating City documents such as the General Plan, Zoning Code and Map, Municipal Code and the Local Coastal Program (LCP). Planning staff review plan checks, entitlement applications, and permits to ensure conformance with local zoning and State and Federal regulations, including the California Environmental Quality Act (CEQA). Planning prides itself on quality customer service, working on balanced, creative solutions to help homeowners, business owners, neighbors, architects, and contractors achieve their goals while complying with the City's regulations. OBJECTIVES FY 2026 Comply with legally mandated housing requirements including, but not limited to: Accessory Dwelling Units (ADUs) and Junior ADUs Southern California Association of Governments (SCAG) Growth Forecast and Regional Housing Needs Assessment (RHNA) No Net Loss and Replacement Units By-Right Supportive Housing Streamlining Density Bonus Senate Bill 9 6th Cycle Housing Element implementation Annual Housing Element Report to Office of Planning and Research and Housing and Community Development Continue to provide oversight for the Skechers Headquarters project, the Sunrise Assisted Living project, the Highrose project and other large projects under construction. Review development projects, including those within the Residential Overlay District (ROD), which are ministerial and do not require public hearings. Continue the Planning Intern program, recruit and fill division vacancies, and train staff. Expand advance planning efforts to implement the long-range vision established by the City and stay up-to-date with code amendments resulting from legislative changes. Explore LCP amendments to accommodate the future development of Parking Lot 3. MAJOR SERVICE DELIVERY CHANGES Implement various programs in the State-mandated 6th Cycle Housing Element. Review large residential projects through a ministerial process rather than a discretionary process. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Analyst 0.25 0.25 0.25 Administrative Assistant 1.00 1.00 1.00 Assistant Planner 1.00 1.00 1.00 Associate Planner 3.00 4.00 4.00 Planning Manager 1.00 1.00 1.00 Planning Technician 1.00 1.00 1.00 Senior Planner 1.00 2.00 2.00 8.25 10.25 10.25 2,265 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 283 Salaries & Benefits (77.8%)Salaries & Benefits (77.8%)Salaries & Benefits (77.8%) Internal Services Charge (17.7%)Internal Services Charge (17.7%)Internal Services Charge (17.7%) Materials & Services (4.4%)Materials & Services (4.4%)Materials & Services (4.4%) Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $836,135 $1,084,518 $1,036,355 $1,145,578 $61,060 5.6% 51103-Part Time Employee Salaries $32,204 $38,505 $16,000 $40,770 $2,265 5.9% 51104-Overtime Regular Employees $2,622 $7,584 $6,000 $7,303 -$281 -3.7% 51201-Group Medical Insurance $133,873 $164,672 $140,361 $157,640 -$7,032 -4.3% 51202-Medicare $12,217 $16,284 $14,786 $17,203 $919 5.6% 51204-401A Plan City $13,235 $17,707 $20,173 $19,288 $1,581 8.9% 51211-PERS Regular Contributions $82,563 $105,184 $98,947 $112,199 $7,015 6.7% Total Salaries & Benefits:$1,112,850 $1,434,454 $1,332,622 $1,499,981 $65,527 4.6% Materials & Services 52101-Contract Services $417,071 $42,355 $171,647 $43,000 $645 1.5% 52203-Printing $5,829 $6,000 $6,000 $6,000 $0 0% 52204-Postage $4,803 $4,435 $4,435 $0 -$4,435 -100% 52206-Advertising $9,155 $6,000 $6,000 $6,000 $0 0% 52301-Training, Conf & Meetings $5,991 $20,200 $12,515 $18,400 -$1,800 -8.9% 52307-Memberships & Dues $2,666 $4,800 $4,800 $6,000 $1,200 25% 52308-Reference Books & Periodicals $475 $700 $700 $750 $50 7.1% 52801-Computers, Supplies & Software $8,751 $0 $0 $0 $0 0% 53101-Telephone $297 $408 $300 $305 -$103 -25.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 284 EXPENDITURES BY TYPE 53105 Postage Allocation $0 $0 $0 $4,600 $4,600 N/A Total Materials & Services:$455,040 $84,898 $206,397 $85,055 $157 0.2% Internal Services Charge 54104-Information Systems Allocation $102,360 $136,074 $136,074 $134,958 -$1,116 -0.8% 54108-Building & Ops Allocation $190,270 $186,824 $186,824 $205,499 $18,675 10% Total Internal Services Charge:$292,630 $322,898 $322,898 $340,457 $17,559 5.4% Capital Projects & Equipment 61201-Furniture & Fixtures $1,536 $2,000 $2,000 $2,000 $0 0% Total Capital Projects & Equipment:$1,536 $2,000 $2,000 $2,000 $0 0% Total Expense Objects:$1,862,055 $1,844,250 $1,863,917 $1,927,493 $83,243 4.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,862,055 $1,844,250 $1,863,917 $1,927,493 $83,243 4.5% Total General Fund:$1,862,055 $1,844,250 $1,863,917 $1,927,493 $83,243 4.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 285 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 286 BUILDING & SAFETY PROGRAM OVERVIEW The Building and Safety Division regulates building construction activity through plan review, permit processing, inspection and education to protect the health, safety and welfare of the community. The Building Division staff review plans for compliance with all applicable local and state codes. Building Inspectors perform daily inspections throughout the construction life-cycle to ensure conformity with approved plans, codes, and regulations. The Citizen Self Service (CSS) website serves as a single location for permit issuance for all construction activity throughout the City, as well as permits for the Public Works and Fire Departments. The CSS website services include intake and plan review, building and planning permit issuance, scheduling and documentation of inspections, and all other matters related to construction activity. OBJECTIVES FY 2026 Continue to upgrade the electronic plan review process to provide additional customer facing features and unify all departments' reviews. Complete initial plan checks application reviews within a timely manner. Perform all building inspections by the next business day. Facilitate progress on key economic development projects including Skechers, Highrose and the proposed hotel on Sepulveda Boulevard. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Analyst 0.25 0.50 0.50 Administrative Assistant 1.00 1.00 1.00 Building Inspector 2.00 2.00 2.00 Building Official 1.00 1.00 1.00 Office Assistant 0.50 0.50 0.50 Permits Technician 3.00 4.00 4.00 Plan Check Engineer 1.00 1.00 1.00 Plans Examiner -1.00 1.00 Principal Building Inspector 1.00 1.00 1.00 Senior Building Inspector 1.00 1.00 1.00 Senior Business Services Analyst 1.00 1.00 1.00 Senior Permits Technician 1.00 1.00 1.00 Senior Plan Check Engineer 1.00 1.00 1.00 13.75 16.00 16.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 287 Salaries & Benefits (53.3%)Salaries & Benefits (53.3%)Salaries & Benefits (53.3%) Materials & Services (35.9%)Materials & Services (35.9%)Materials & Services (35.9%) Internal Services Charge (10.7%)Internal Services Charge (10.7%)Internal Services Charge (10.7%) Capital Projects & Equipment (0.05%)Capital Projects & Equipment (0.05%)Capital Projects & Equipment (0.05%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,252,874 $1,472,357 $1,377,462 $1,573,938 $101,581 6.9% 51104-Overtime Regular Employees $2,307 $12,500 $2,300 $12,500 $0 0% 51201-Group Medical Insurance $216,618 $244,650 $237,684 $288,363 $43,713 17.9% 51202-Medicare $17,660 $21,349 $17,952 $22,822 $1,473 6.9% 51204-401A Plan City $16,748 $17,187 $15,634 $18,201 $1,014 5.9% 51211-PERS Regular Contributions $122,317 $142,030 $132,246 $148,078 $6,048 4.3% Total Salaries & Benefits:$1,628,523 $1,910,073 $1,783,278 $2,063,902 $153,829 8.1% Materials & Services 52101-Contract Services $1,035,296 $1,275,000 $1,545,000 $1,336,250 $61,250 4.8% 52201-Departmental Supplies $279 $500 $500 $500 $0 0% 52203-Printing $5,586 $9,000 $9,000 $9,000 $0 0% 52204-Postage $2,402 $2,306 $2,306 $0 -$2,306 -100% 52205-Uniforms/Safety Equipment $3,338 $5,000 $4,200 $5,000 $0 0% 52301-Training, Conf & Meetings $12,289 $24,000 $24,000 $26,500 $2,500 10.4% 52307-Memberships & Dues $2,046 $3,052 $3,122 $3,902 $850 27.9% 52308-Reference Books & Periodicals $2,696 $3,700 $3,700 $6,500 $2,800 75.7% 52801-Computers, Supplies & Software $14,059 $4,700 $4,700 $1,100 -$3,600 -76.6% 53101-Telephone $447 $614 $400 $407 -$207 -33.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 288 EXPENDITURES BY TYPE 53105 Postage Allocation $0 $0 $0 $2,392 $2,392 N/A Total Materials & Services:$1,078,439 $1,327,872 $1,596,928 $1,391,551 $63,679 4.8% Internal Services Charge 54102-Warehouse Purchases $0 $200 $200 $300 $100 50% 54104-Information Systems Allocation $156,828 $153,316 $153,316 $215,234 $61,918 40.4% 54106-Fleet Rental Allocation $42,168 $42,170 $42,170 $19,060 -$23,110 -54.8% 54107-Fleet Maintenance Allocation $45,581 $62,047 $62,047 $17,062 -$44,985 -72.5% 54108-Building & Ops Allocation $152,233 $149,475 $149,475 $164,417 $14,942 10% Total Internal Services Charge:$396,810 $407,208 $407,208 $416,073 $8,865 2.2% Capital Projects & Equipment 61201-Furniture & Fixtures $1,471 $2,000 $2,000 $2,000 $0 0% Total Capital Projects & Equipment:$1,471 $2,000 $2,000 $2,000 $0 0% Total Expense Objects:$3,105,243 $3,647,153 $3,789,414 $3,873,526 $226,373 6.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $3,105,243 $3,647,153 $3,789,414 $3,873,526 $226,373 6.2% Total General Fund:$3,105,243 $3,647,153 $3,789,414 $3,873,526 $226,373 6.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 289 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 290 CODE ENFORCEMENT PROGRAM OVERVIEW As a part of the Building and Safety Division, the Code Enforcement program ensures compliance with City construction rules, Municipal Codes, and applicable health and safety codes to protect the welfare of the community. The Code Enforcement program includes a Code Enforcement Supervisor and Officers who are responsible for conducting inspections of reported violations, working with involved parties to resolve issues, and most importantly, providing education to ensure future compliance. The Residential Construction Officer (RCO) has successfully reduced the number of construction-related complaints by acting as a liaison between residents and builders to resolve construction-related concerns. OBJECTIVES FY 2026 Continue to enforce proactive programs on targeted issues. Proactively work with residents and the construction community to address construction-related problems such as traffic congestion, parking, noise, smoking and dust control. Continue to conduct frequent and often multiple-day inspections in areas with high volume of construction activity (hot spots). AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Code Enforcement Officer I/II 4.00 4.00 4.00 Code Enforcement Supervisor 1.00 1.00 1.00 Office Assistant 0.50 0.50 0.50 5.50 5.50 5.50 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 291 Salaries & Benefits (78.4%)Salaries & Benefits (78.4%)Salaries & Benefits (78.4%) Internal Services Charge (16.6%)Internal Services Charge (16.6%)Internal Services Charge (16.6%) Materials & Services (4.9%)Materials & Services (4.9%)Materials & Services (4.9%) Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%)Capital Projects & Equipment (0.1%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $448,511 $474,481 $473,190 $502,762 $28,281 6% 51103-Part Time Employee Salaries $684 $0 $0 $0 $0 0% 51104-Overtime Regular Employees $3,545 $10,000 $6,000 $10,000 $0 0% 51201-Group Medical Insurance $83,502 $82,436 $76,435 $64,944 -$17,492 -21.2% 51202-Medicare $6,277 $6,880 $6,861 $7,290 $410 6% 51204-401A Plan City $3,587 $4,369 $3,973 $4,968 $599 13.7% 51211-PERS Regular Contributions $42,910 $45,988 $45,670 $47,714 $1,726 3.8% Total Salaries & Benefits:$589,017 $624,154 $612,129 $637,678 $13,524 2.2% Materials & Services 52101-Contract Services $30,997 $26,500 $13,000 $16,000 -$10,500 -39.6% 52201-Departmental Supplies $0 $300 $300 $500 $200 66.7% 52203-Printing $9,779 $3,000 $2,500 $3,000 $0 0% 52204-Postage $667 $640 $640 $0 -$640 -100% 52205-Uniforms/Safety Equipment $1,417 $3,700 $3,100 $3,700 $0 0% 52301-Training, Conf & Meetings $6,420 $10,500 $10,500 $12,000 $1,500 14.3% 52307-Memberships & Dues $920 $1,000 $1,000 $1,500 $500 50% 52308-Reference Books & Periodicals $224 $300 $300 $300 $0 0% 52801-Computers, Supplies & Software $5,938 $3,525 $3,525 $2,200 -$1,325 -37.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 292 EXPENDITURES BY TYPE 53101-Telephone $116 $160 $150 $152 -$8 -5% 53105 Postage Allocation $0 $0 $0 $665 $665 N/A Total Materials & Services:$56,478 $49,625 $35,015 $40,017 -$9,608 -19.4% Internal Services Charge 54102-Warehouse Purchases $276 $200 $200 $200 $0 0% 54104-Information Systems Allocation $67,656 $62,445 $62,445 $73,878 $11,433 18.3% 54106-Fleet Rental Allocation $0 $0 $14,178 $24,560 $24,560 N/A 54107-Fleet Maintenance Allocation $6,870 $9,352 $9,352 $36,235 $26,883 287.5% Total Internal Services Charge:$74,802 $71,997 $86,175 $134,873 $62,876 87.3% Capital Projects & Equipment 61201-Furniture & Fixtures $0 $1,000 $1,000 $1,000 $0 0% Total Capital Projects & Equipment:$0 $1,000 $1,000 $1,000 $0 0% Total Expense Objects:$720,297 $746,776 $734,319 $813,568 $66,792 8.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $720,297 $746,776 $734,319 $813,568 $66,792 8.9% Total General Fund:$720,297 $746,776 $734,319 $813,568 $66,792 8.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 293 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 294 TRAFFIC ENGINEERING PROGRAM OVERVIEW The Traffic Engineering Division is responsible for the safe and efficient movement of people and goods on the City's transportation system. It is the Division's objective to provide a balanced and accessible multi-modal network that serves all users: pedestrians, bicyclists, motorists and transit riders. The Division oversees the proper application of traffic control devices, including traffic signals, stop signs, striping and markings, as well as determines proper road geometry, speed limits and pedestrian infrastructure. The Division conducts neighborhood traffic-calming studies, crosswalk studies, collision studies, parking studies and prepares and reviews traffic control plans. Some of the traffic related programs supported by the Division include School Area Safety Studies, crosswalk flashing beacons and signs, bike safety plans, special event plans, and the Electric Vehicle (EV) charging network. The Division is responsible for most parking related regulations in the City, including parking meter zones, loading zones, parking permits, overnight parking permits, moving van permits and no parking zones. Traffic Engineering works cooperatively with the Police Department to enforce traffic laws by conducting traffic safety studies and speed limit surveys as well as collecting traffic volume data. The Traffic Engineering Division implements the policies and objectives of the City's General Plan Mobility Plan, Bike Master Plan and Living Streets Manual. The Division works in collaboration with other departments to expand the bikeway network, add bike racks and bike corrals, install EV charging stations, install accessible public amenities and construct new sidewalk segments to enhance mobility and equity for all users. The Traffic Engineering Division is also responsible for the City's traffic signal maintenance and is the liaison for the Parking and Public Improvements Commission (PPIC). The Division reviews and issues over 1,000 right-of-way permits, traffic control plans, POD permits, temporary loading zones, moving van and oversize vehicle permits each year. OBJECTIVES FY 2026 Assist in the development and implementation of the City’s updated parking code requirements for new developments. Implement the City’s Traffic Impact Guidelines for new developments that include Vehicle Miles Traveled (VMT) criteria. Assist in the funding and construction of pedestrian and bicycle related projects throughout the City to improve mobility and safety. Evaluate and implement Neighborhood Traffic Management Plans in various locations. Implement the traffic related objectives and goals of the Mobility Plan including new bus stop shelters, bike racks and sidewalk connections. Complete the City Public Parking Management Study and implement the recommended parking strategies to efficiently manage existing and future parking demand and loading activities on streets and in the parking lots in the Downtown and North Manhattan Beach business districts. Assist in the development and construction of a replacement parking facility for Parking Lot 3. AUTHORIZED FULL-TIME POSITIONS FY 2023 Adopted FY 2024 Adopted FY 2025 Adopted Administrative Analyst 1.00 0.75 0.75 Traffic Engineer 1.00 1.00 1.00 2.00 1.75 1.75 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 295 Salaries & Benefits (48.7%)Salaries & Benefits (48.7%)Salaries & Benefits (48.7%) Materials & Services (47.2%)Materials & Services (47.2%)Materials & Services (47.2%) Internal Services Charge (4.1%)Internal Services Charge (4.1%)Internal Services Charge (4.1%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $218,197 $195,837 $219,479 $214,530 $18,693 9.5% 51104-Overtime Regular Employees $26 $2,000 $1,000 $2,000 $0 0% 51201-Group Medical Insurance $33,600 $30,627 $33,560 $31,905 $1,278 4.2% 51202-Medicare $3,146 $2,840 $3,288 $3,111 $271 9.5% 51204-401A Plan City $6,554 $5,968 $6,807 $6,537 $569 9.5% 51211-PERS Regular Contributions $20,567 $18,820 $20,255 $20,196 $1,376 7.3% Total Salaries & Benefits:$282,089 $256,092 $284,389 $278,279 $22,187 8.7% Materials & Services 52101-Contract Services $174,141 $210,000 $263,000 $255,326 $45,326 21.6% 52203-Printing -$81 $500 $500 $500 $0 0% 52205-Uniforms/Safety Equipment $0 $200 $200 $0 -$200 -100% 52206-Advertising $0 $500 $10,250 $250 -$250 -50% 52207-Tools & Minor Equipment $881 $1,000 $1,000 $1,000 $0 0% 52301-Training, Conf & Meetings $5,805 $9,100 $9,100 $9,720 $620 6.8% 52307-Memberships & Dues $1,661 $1,350 $1,250 $1,550 $200 14.8% 52308-Reference Books & Periodicals $709 $600 $600 $1,500 $900 150% 53101-Telephone $33 $44 $40 $41 -$3 -6.8% Total Materials & Services:$183,149 $223,294 $285,940 $269,887 $46,593 20.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 296 EXPENDITURES BY TYPE Internal Services Charge 54104-Information Systems Allocation $24,600 $11,184 $11,184 $23,269 $12,085 108.1% Total Internal Services Charge:$24,600 $11,184 $11,184 $23,269 $12,085 108.1% Capital Projects & Equipment 61201-Furniture & Fixtures $397 $0 $0 $0 $0 0% Total Capital Projects & Equipment:$397 $0 $0 $0 $0 0% Total Expense Objects:$490,236 $490,570 $581,513 $571,435 $80,865 16.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $490,236 $490,570 $488,513 $546,109 $55,539 11.3% Prop. A Fund $0 $0 $87,000 $25,326 $25,326 N/A Measure M Fund $0 $0 $6,000 $0 $0 0% Total:$490,236 $490,570 $581,513 $571,435 $80,865 16.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 297 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 298 ENVIRONMENTAL SUSTAINABILITY PROGRAM OVERVIEW The Environmental Sustainability Division strives to create a healthy, sustainable and resilient City while furthering the City's long history of environmental leadership, policy, and stewardship, both as a community and as a City government. The Division actively works on programs and policies in the Environmental Work Plan, based on municipal sustainability and environmental policy best practices, as well as education and outreach to the public. OBJECTIVES FY 2026 Continue efforts to certify local businesses in the Green Business Program. Implementation of the Climate Action and Adaptation Plan (CAAP). Strive for gold-level certification for energy reduction efforts through the SBCCOG. Continue community and educational outreach through volunteer events, City booths during Earth Month, Farmers Markets, and Hometown Fair events and City representation at Manhattan Beach Unified "Green Committee" meetings. Continue to gauge the community's preferred environmental priorities through social media and other sustainability forums. MAJOR SERVICE DELIVERY CHANGES To support the recently adopted Climate Action and Adaptation Plan (CAAP), the City is committed to completing a greenhouse gas emissions inventory every three to five years to track the City's emissions reductions. The last greenhouse gas emissions inventory conducted by the City covered 2019 through 2021. In FY 2026, the City is committed to completing an updated greenhouse gas emissions inventory. To further support the City's environmental initiatives, staff will continue to support the Green Business Program and re-certify existing businesses and certify new businesses into the voluntary program. Additionally, the City will enter into a public-private partnership to support the Marine Mammal Care Center for Los Angeles, a non-profit rescue service and hospital for marine mammals that are stranded along the Southern California Coast due to illness, injury or malnutrition. The Marine Mammal Care Center will conduct regular patrols of the Manhattan Beach coast and provide educational outreach to City residents and visitors about best practices to protect marine mammals and preservation of the ocean environment. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Environmental Programs Administrator 1.00 1.00 1.00 1.00 1.00 1.00 800 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 299 Salaries & Benefits (68.3%)Salaries & Benefits (68.3%)Salaries & Benefits (68.3%) Materials & Services (31.7%)Materials & Services (31.7%)Materials & Services (31.7%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $126,029 $137,910 $95,030 $116,939 -$20,971 -15.2% 51103-Part Time Employee Salaries $1,975 $13,600 $13,600 $13,600 $0 0% 51201-Group Medical Insurance $1,104 $1,088 $14,832 $23,237 $22,149 2,035.8% 51202-Medicare $1,858 $2,214 $1,378 $1,893 -$321 -14.5% 51204-401A Plan City $4,916 $5,612 $4,276 $4,864 -$748 -13.3% 51211-PERS Regular Contributions $10,869 $12,676 $9,275 $10,877 -$1,799 -14.2% Total Salaries & Benefits:$146,752 $173,100 $138,391 $171,410 -$1,690 -1% Materials & Services 52101-Contract Services $44,093 $10,000 $28,734 $90,000 $80,000 800% 52201-Departmental Supplies $417 $10,000 $10,000 $13,000 $3,000 30% 52203-Printing $0 $1,000 $1,000 $1,000 $0 0% 52206-Advertising $4,488 $10,000 $10,000 $10,000 $0 0% 52301-Training, Conf & Meetings $0 $8,000 $8,000 $6,000 -$2,000 -25% 52307-Memberships & Dues $0 $9,300 $9,300 $9,400 $100 1.1% 52308-Reference Books & Periodicals $0 $200 $200 $200 $0 0% Total Materials & Services:$48,998 $48,500 $67,234 $129,600 $81,100 167.2% Total Expense Objects:$195,750 $221,600 $205,625 $301,010 $79,410 35.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 300 EXPENDITURES BY TYPE SOURCE OF FUNDS General Fund $195,750 $221,600 $205,625 $301,010 $79,410 35.8% Total General Fund:$195,750 $221,600 $205,625 $301,010 $79,410 35.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 301 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 302 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 304 MISSION To build, maintain, and protect our small beach town community with a passion for excellence. DEPARTMENT OVERVIEW Public Works is one of the City's largest departments, responsible for the operation and maintenance of all public infrastructure located in the public right-of-way and City properties. Public Works is composed of four divisions: Administration, Engineering, Utilities, and Field Operations. In general, Administration manages the day-to-day departmental operations such as payroll, tracking of service requests, clerical, overall customer service, and the City's refuse hauling contract, including waste hauling and recycling programs in conformance with State laws. Engineering develops and manages the City's Capital Improvement Plan. The Utilities Division operates and maintains the City's sewer, storm drain, and water systems. Field Operations oversees the upkeep of City streets, parks, facilities, fleet, and street sweeping. The Public Works Department is essential to the quality of life experienced by the Manhattan Beach community. Standard elements of urban living such as access to high-quality running water, a reliable sewer system, well-maintained roads and cleanliness through convenient refuse and street sweeping programs are crucial. A superior level of service is provided by the Public Works Department and its contractors, which sets Manhattan Beach apart from other communities. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 305 RECENT ACCOMPLISHMENT HIGHLIGHTS ADMINISTRATION DIVISION Completed the second performance audit of the City’s waste hauling franchise agreement. Began working on recommended changes listed in the gap analysis report to help the City comply with SB 1383 state mandates. Completed the Proposition 218 process for the City's solid waste rates for FY2026-FY2030. Implemented solutions to address the results of the 2023 Employee Survey Supported Citywide Efforts to Update the Local Hazard Mitigation Plan Lead efforts to complete the following City Council Work Plans: Downtown and North Manhattan Beach Beautification Completed installation of improved tree lights Citywide Refreshed all concrete trashcans, including paint, new lids, and liners Refreshed planters in both business districts Community Education Regarding Recycling and Its Relation to Organic Waste Community Engagement: Hosted events, distributed kitchen pails, and provided recycling education at markets, businesses, schools, and local events. Recycling Support: Assisted schools and businesses with waste programs, battery drives, and organics recycling compliance. Promotion & Infrastructure: Installed food recyclers, ran ads, and published a recycling-focused newsletter. Parking Meter & Kiosk Exploration Secured direction from City Council about transitioning the City’s parking technology. ENGINEERING DIVISION Issued over 554 utility/right-of-way excavation permits, performed approximately 25,000 Public Works inspections, and completed 361 plan check reviews. Continued to increase community engagement through mailers, a new Public Works Newsletter, regular website updates, and more community meetings. Retained CDBG funding and began design of the CDBG ADA Curb Ramp Project – Cycle 4. Initiated Feasibility Study for Recycled Water in North Manhattan Beach and Manhattan Beach Boulevard Medians Project Awarded construction contract for Citywide Security Cameras Project – Phase 3 Begin design for El Porto Water Infrastructure Improvement Project – Phase 1 Received an American Public Works Association (APWA) award for the Fire Station No. 2 Reconstruction Project. Received an American Council of Engineering Companies (ACEC) award for the Sepulveda Bridge Widening Project. Started construction on the Citywide Concrete Repairs Project – Cycle 3. Initiated design phase for the Sand Dune Park Improvements. Completed startup and commissioning of the Peck Reservoir Groundwater Treatment Plant. Completed construction of the Manhattan Village Senior Villas ADA Pathway Project. Completed construction of the Annual Street Resurfacing Project – Cycle 2 Marine Ave and 14 St Completed construction of the Pier Railing Replacement Project. Completed construction of the Citywide Security Cameras Project – Phase 1 and 2. Completed construction of the Ceramics Studio Renovations (Kiln) Project. Completed construction of the Joslyn Center Crosswalk Improvements Project. Completed construction on the Water Infrastructure Improvement Project – Cycle 2. Completed construction on the CDBG ADA Curb Ramp Project – Cycle 3. Completed construction on the Total Maximum Daily Load (TMDL) Trash Treatment Project. Completed Design and awarded construction contract on the Sewer Improvement Project – Cycle 3. Completed construction on the Citywide Concrete Repairs Project – Cycle 2. Completed Feasibility Study and initiated design of the Manhattan Heights Restroom Building Project. Completed design, awarded construction contract, and started construction the Biennial Slurry Seal Cycle 3 Project Completed construction of the Polliwog Park National Fitness Campaign Fitness Station Project. Completed design, obtained easements, and awarded construction contract for the Aviation Boulevard and 33 Missing Sidewalk Project. Completed utility cabling and cutover phase in Utility Undergrounding Districts 12 and 14. Completed electrical design for Utility Undergrounding Districts 8 and 13. Completed design, awarded construction contract, and started construction of the Beach Cities Green Streets Project. Completed design for the 2nd Street Water Booster Station Projects. Completed design, awarded construction contract, and started construction of the Manhattan Beach Advanced Traffic Signal (MBATS) System Project. Completed construction for the Wayfinding Program – Phase I. Completed design, awarded construction contract, and started construction of the Voorhees Avenue Sewer Lift Station Project. Completed design, awarded construction contract, and started construction of the 28 Street Stormwater Infiltration Project. th rd th CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 306 Completed design, awarded construction contract, and started construction of the Pacific Avenue Sewer Lift Station Conversion to Gravity Line Project. Completed conceptual design of the Manhattan Beach Boulevard and Pacific Avenue Intersection Improvements Project. Completed demolition of Lot 3 Parking Structure Completed design and construction of interim parking lot at site for former Lot 3 Parking Structure. Completed design and entered permitting phase of the Senior and Scout House Replacement Project. Completed design, awarded construction contract, and started construction of the Water Infrastructure Improvements – Cycle 3. Completed design of the Annual Street Resurfacing Project – Cycle 3. Completed design of Police Department Flooring Replacement Project. Completed Feasibility Study and Preliminary Design for the Dominguez Channel – Distributed Dry Wells and Green Infrastructure Siting Project. Completed design and procurement of the EV Chargers at Marine Avenue Park Project. Completed design of the Poinsettia Sewer Lift Station Upgrade Project. Completed feasibility studies for reconfiguration of the “Horseshoe” at City Hall and City Council Chambers. Completed the Triennial Pavement Management System updated report. Completed Feasibility Study coordination with the Water Replenishment District (WRD) for the Brackish Well Project. Completed design for Golf Course Storm Drain Lift Station Electrical Upgrades. Completed the PD Flooring Replacement Project. FIELD OPERATIONS DIVISION Refreshed the planters in Downtown and North Manhattan Beach Planter on a quarterly basis. Completed the Obelisk Rehabilitation Project. Completed the Polliwog Park Dog Run Expansion Project. Installed new a basketball rim, backboard and net and updated signage at Larsson Park. Completed the planned replacement of 20 vehicles that had reached the end of their useful life. Planted 100 additional trees in the City. Awarded a new janitorial contract for City facilities. Awarded a new service contract for citywide tree trimming and maintenance. Repainted the stairwells and modernized the lighting fixtures in the stairwells of the Metlox Parking Garage. Upgraded EV Chargers to accept cost recovery payments. Resurfaced 8 pickleball, and 8 tennis courts. Identified preliminary operating priorities, goals, and objectives related to the Parking Operations year 1 recommendations. Increased allocated staff hours for parking program management and analysis related to the Parking Operations year 1 recommendations. Reviewed agreement with City’s parking vendor and considered future commitments. Implemented the Year 1 Recommendations from the Parking Operations Study: Converted light fixtures to LED at City Hall. Repaired drinking fountains throughout the City. Completed millwork modifications for the Finance Department. Installed new cubicles in Community Development and Parks and Recreation. Installed Holiday Pier Lights. Replaced nine declining sycamore trees at Metlox with nine olive trees. Worked with the Friends of Polliwog Park, Manhattan Beach Botanical Garden, concerned citizens, the Parks and Recreation Commission, and the MBUSD to remove 20 trees and plant 85 trees at Polliwog Park. Temporarily relocated the Farmer’s Market from Metlox to the Civic Center area. Completed in-depth trash receptacle maintenance in the Downtown Streetscape and the Pier, including steam cleaning inside and out, replacing liners, painting and refurbishing the hover lids. Installed approximately 90 new parking spaces in Downtown to address the Lot 3 emergency. Acquired a third pressure washing machine to enhance service levels. Installed the new fence and new benches at 8th Street Parkette. Installed umbrellas at the Live Oak/Dorsey dog run and Polliwog dog run. Finished concrete sections at Heights Community Center. Retrofitted Sand Dune Park impact sprinkler head assemblies. Major Irrigation Repairs at Polliwog Park. Completed the fall field renovations. Established a Playground Safety Inspection Program. Installed new bike racks at Manhattan Beach Boulevard and Highland Avenue. Installed 74 signs citywide to support the Oversized Vehicle Permit Parking program. Replaced 64 after-hours and permit parking signs in the Civic Center parking lot. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 307 UTILITIES DIVISION Initiated the revision process for Water Specifications, Standards, and Drawings. Adopted cross-connection control ordinance. Reduced potential for Sanitary Sewer Overflows (SSO) by increasing cleaning of vulnerable areas of the sewer system. Instituted cross-divisional staff muster meetings to coordinate daily projects. Completed pump efficiency and infrared testing at all water sites. Reestablished the valve replacement program. Established an air-vacuum maintenance program. Instituted an improved fire hydrant maintenance program. Improved water system resiliency by cross-training staff on critical aspects of the production and distribution sides of the water system. Completed tank diving inspection at Block 35. Increased catch basin cleaning by 25%. Restored 23 /Peck lift station and enhanced operational efficiency by adding automated backup electrical power. Completed manhole replacements at Manhattan Village Mall. Placed the new Sewer Combination & CCTV vehicles into service. Replaced submersible pump #2 at the Westdrift golf course and increased efficiency. Increased system resiliency and emergency response capabilities by establishing on-call electrical and construction service contracts with local vendors. Improved utilization of iWater work order management system to enhance stormwater system maintenance and repairs. Established emergency Sewer Lift Station bypass procedures. rd CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 308 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 309 PERFORMANCE MEASURES % PLANNED CIP CONSTRUCTION CONTRACTS AWARDED PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 100%100%100%100% % DISTRIBUTED WATER EXTRACTED FROM CITY-OWNED WELLS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 12.8%3.7%4.0%30.7% % PLANNED SEWER LINES CLEANED PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 80%61%71%100% % REPORTED GRAFFITI REMOVED WITHIN 1 BUSINESS DAY PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 91%90%90%100% % POTHOLES REPAIRED WITHIN 2 BUSINESS DAYS PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 90%89%95%100% The City’s Engineering Division is the steward of the City’s Capital Improvement Plan. Awarding construction contracts in a timely manner avoids known and anticipated cost increases related to infrastructure improvements and new construction. Most of the City’s water is imported. Manhattan Beach invests in local water pumping and is implementing plans to improve the resiliency of its water supply. The City’s Utilities Division plans to clean all sewer mains twice annually. Properly maintained sewer mains prevent sewer system overflows (SSOs) and protects public health. The City prioritizes the removal of graffiti. The Field Operations Division aims to remove graffiti within 1 business day of it being reported to the City. The City prioritizes the repair of potholes. The Field Operations Division aims to repair potholes within 2 business days of them being reported to the City. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 310 BY THE NUMBERS IN 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 311 DEPARTMENT EXPENDITURES BY PROGRAM Water (25.2%)Water (25.2%)Water (25.2%) Civil Engineering (17.2%)Civil Engineering (17.2%)Civil Engineering (17.2%) Parking Facilities (13%)Parking Facilities (13%)Parking Facilities (13%) Street Maintenance (11.6%)Street Maintenance (11.6%)Street Maintenance (11.6%) Storm Drain (8.7%)Storm Drain (8.7%)Storm Drain (8.7%) Sewer (7.7%)Sewer (7.7%)Sewer (7.7%) Bldg & Grounds Maintenance (6.2%)Bldg & Grounds Maintenance (6.2%)Bldg & Grounds Maintenance (6.2%) Fleet Management (5.6%)Fleet Management (5.6%)Fleet Management (5.6%) Public Works Admin (3.9%)Public Works Admin (3.9%)Public Works Admin (3.9%) Street Lighting & Landscape (0.9%)Street Lighting & Landscape (0.9%)Street Lighting & Landscape (0.9%) Public Works Transportation (0.001%)Public Works Transportation (0.001%)Public Works Transportation (0.001%) Expenditures Public Works Public Works Admin $2,186,711 $3,491,011 $3,562,699 $2,996,527 -$494,484 -14.2% Total Public Works Admin:$2,186,711 $3,491,011 $3,562,699 $2,996,527 -$494,484 -14.2% Civil Engineering $10,862,758 $15,859,776 $11,427,325 $12,378,734 -$3,481,042 -21.9% Total Civil Engineering:$10,862,758 $15,859,776 $11,427,325 $12,378,734 -$3,481,042 -21.9% Street Maintenance Street Repair $7,738,008 $13,174,811 $8,714,004 $7,584,010 -$5,590,801 -42.4% Sidewalk Repair $411,981 $365,000 $667,403 $840,000 $475,000 130.1% Traffic Control $621,731 $582,295 $745,315 $601,279 $18,984 3.3% Total Street Maintenance:$8,771,720 $14,122,106 $10,126,722 $9,025,289 -$5,096,817 -36.1% Bldg & Grounds Maintenance Bldg & Grounds Maintenance $2,496,205 $2,470,974 $2,463,724 $2,638,495 $167,521 6.8% Parks Maintenance $1,028,990 $1,632,235 $1,587,840 $1,848,378 $216,143 13.2% School District Maintenance $289,720 $320,675 $301,837 $287,416 -$33,259 -10.4% Total Bldg & Grounds Maintenance:$3,814,915 $4,423,884 $4,353,401 $4,774,289 $350,405 7.9% Public Works Transportation $2,917 $673 $82,214 $673 $0 0% Total Public Works Transportation:$2,917 $673 $82,214 $673 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 312 Street Lighting & Landscape Street Lighting $543,051 $561,894 $527,832 $526,462 -$35,432 -6.3% Arbolado Tract Lighting $11,627 $11,269 $7,875 $11,354 $85 0.8% Streetscape Maintenance $132,726 $131,168 $125,146 $137,649 $6,481 4.9% Total Street Lighting & Landscape:$687,404 $704,331 $660,853 $675,465 -$28,866 -4.1% Water Water Admin $5,843,784 $5,987,006 $5,168,456 $4,472,308 -$1,514,698 -25.3% Water Source Of Supply $7,806,989 $7,623,078 $7,325,839 $7,660,273 $37,195 0.5% Water Pumping $1,255,280 $1,575,151 $1,822,335 $3,728,592 $2,153,441 136.7% Water Treatment $431,474 $523,962 $423,712 $439,339 -$84,623 -16.2% Water Maintenance $2,319,047 $3,198,485 $3,047,586 $2,673,959 -$524,526 -16.4% Environmental Compliance- Water $27,943 $242,449 $582,562 $612,000 $369,551 152.4% Total Water:$17,684,516 $19,150,131 $18,370,490 $19,586,471 $436,340 2.3% Storm Drain Storm Drain Maintenance $1,205,757 $2,298,122 $4,396,633 $2,004,601 -$293,521 -12.8% Measure W SWCLA $430,077 $100,000 $2,368,071 $4,107,744 $4,007,744 4,007.7% Environmental Compliance – Storm $6,210 $315,213 $163,460 $653,340 $338,127 107.3% Total Storm Drain:$1,642,043 $2,713,335 $6,928,164 $6,765,685 $4,052,350 149.3% Sewer Sewer Maintenance $3,360,240 $8,126,279 $3,879,972 $5,828,083 -$2,298,196 -28.3% Environmental Compliance- Sewer $29,959 $179,578 $168,056 $170,837 -$8,741 -4.9% Total Sewer:$3,390,200 $8,305,857 $4,048,028 $5,998,920 -$2,306,937 -27.8% Fleet Management Fleet Maintenance $1,493,029 $1,819,967 $1,625,276 $1,798,958 -$21,009 -1.2% Fleet Replacement $2,865,984 $3,110,480 $3,253,761 $2,507,793 -$602,687 -19.4% Total Fleet Management:$4,359,013 $4,930,447 $4,879,037 $4,306,751 -$623,696 -12.6% Parking Facilities Street Meters & City Lots $3,070,335 $4,290,885 $4,538,779 $8,185,111 $3,894,226 90.8% State Lot A - Pier $1,973,088 $935,275 $1,271,204 $702,081 -$233,194 -24.9% County Lot B - 26th St.$228,725 $276,908 $271,140 $391,710 $114,802 41.5% County Lot C - El Porto $518,406 $613,993 $601,690 $796,301 $182,308 29.7% Total Parking Facilities:$5,790,555 $6,117,061 $6,682,813 $10,075,203 $3,958,142 64.7% Total Public Works:$59,192,752 $79,818,612 $71,121,746 $76,584,007 -$3,234,605 -4.1% Total Expenditures:$59,192,752 $79,818,612 $71,121,746 $76,584,007 -$3,234,605 -4.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 313 SCHEDULE OF EXPENDITURE DETAIL Capital Projects & Equipment (40.1%)Capital Projects & Equipment (40.1%)Capital Projects & Equipment (40.1%) Materials & Services (27.6%)Materials & Services (27.6%)Materials & Services (27.6%) Salaries & Benefits (14.9%)Salaries & Benefits (14.9%)Salaries & Benefits (14.9%) Internal Services Charge (11.8%)Internal Services Charge (11.8%)Internal Services Charge (11.8%) Debt Service (5.6%)Debt Service (5.6%)Debt Service (5.6%) Transfers (0.02%)Transfers (0.02%)Transfers (0.02%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $6,700,907 $7,131,126 $7,151,938 $7,756,221 $625,095 8.8% 51103-Part Time Employee Salaries $332,770 $271,078 $305,298 $315,238 $44,160 16.3% 51104-Overtime Regular Employees $894,048 $289,396 $745,785 $497,186 $207,790 71.8% 51107-Overtime Special Events $22,957 $69,987 $69,987 $69,987 $0 0% 51201-Group Medical Insurance $1,227,525 $1,298,732 $1,317,989 $1,478,316 $179,584 13.8% 51202-Medicare $113,501 $108,338 $118,826 $115,937 $7,599 7% 51203-Medical Retirement Contrs $0 $0 $0 $4,581 $4,581 N/A 51204-401A Plan City $122,916 $127,608 $132,986 $144,287 $16,679 13.1% 51205-Contributions to City Pension $5,790 $6,083 $6,083 $6,329 $246 4% 51211-PERS Regular Contributions $651,762 $690,683 $680,684 $741,657 $50,974 7.4% 51213-PERS Regular Net Pension Liab $0 $119,779 $114,551 $217,830 $98,051 81.9% 51221-Accrued Leave -$14,584 $0 $0 $0 $0 0% 51231-Unemployment $6,204 $6,200 $6,200 $6,200 $0 0% 51232-Workers Compensation $311,340 $366,840 $366,840 $217,800 -$149,040 -40.6% Total Salaries & Benefits:$10,375,135 $10,485,850 $11,017,167 $11,571,569 $1,085,719 10.4% Materials & Services 52101-Contract Services $13,496,587 $14,683,002 $14,099,072 $14,345,529 -$337,473 -2.3% 52102-Audit Services $4,425 $0 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 314 52103-Software Purchases and Subscriptions $77,057 $357,340 $350,795 $375,987 $18,647 5.2% 52107-Legal Services $73 $0 $0 $0 $0 0% 52109-Automotive Repair Services $3,163 $0 $0 $0 $0 0% 52201-Departmental Supplies $2,058,623 $2,249,401 $2,328,681 $2,063,405 -$185,996 -8.3% 52202-Office Supplies $8,096 $14,000 $10,078 $10,000 -$4,000 -28.6% 52203-Printing $15,135 $15,550 $19,453 $19,800 $4,250 27.3% 52204-Postage $16,167 $4,414 $3,695 $5,645 $1,231 27.9% 52205-Uniforms/Safety Equipment $56,109 $79,605 $110,955 $76,090 -$3,515 -4.4% 52206-Advertising $13,854 $51,550 $51,550 $51,550 $0 0% 52207-Tools & Minor Equipment $87,863 $39,800 $21,800 $43,950 $4,150 10.4% 52301-Training, Conf & Meetings $150,537 $157,300 $168,288 $168,218 $10,918 6.9% 52304-Employee Awards & Events $5,620 $5,000 $5,000 $5,000 $0 0% 52307-Memberships & Dues $25,388 $37,361 $40,510 $44,407 $7,046 18.9% 52308-Reference Books & Periodicals $2,367 $8,250 $1,150 $3,250 -$5,000 -60.6% 52402-Automotive Fuel $541,265 $715,674 $703,674 $703,674 -$12,000 -1.7% 52404-Bank Service Charge $489,914 $425,000 $462,500 $425,000 $0 0% 52406-Assessments & Taxes $59,430 $503,740 $494,247 $852,372 $348,632 69.2% 52706-DMBBPA Allocation $235,770 $120,000 $120,000 $120,000 $0 0% 52801-Computers, Supplies & Software $30,612 $259,164 $187,004 $20,427 -$238,737 -92.1% 53101-Telephone $124,753 $178,328 $124,918 $126,792 -$51,536 -28.9% 53102-Electricity $975,503 $817,312 $1,108,800 $1,155,378 $338,066 41.4% 53103-Natural Gas $159,591 $196,680 $148,526 $150,754 -$45,926 -23.4% 53104-Water $540,199 $602,369 $593,471 $605,347 $2,978 0.5% 53105 Postage Allocation $0 $0 $0 $4,579 $4,579 N/A Total Materials & Services:$19,178,100 $21,520,840 $21,154,167 $21,377,154 -$143,686 -0.7% Internal Services Charge 54101-Administrative Service Charge $2,856,971 $2,855,422 $2,855,422 $4,172,286 $1,316,864 46.1% 54102-Warehouse Purchases $102,610 $120,029 $106,229 $122,628 $2,599 2.2% 54103-Garage Purchases $19,068 $51,000 $15,000 $25,000 -$26,000 -51% 54104-Information Systems Allocation $797,328 $930,149 $930,149 $1,129,690 $199,541 21.5% 54105-Insurance Allocation $347,174 $1,531,620 $1,531,620 $808,680 -$722,940 -47.2% 54106-Fleet Rental Allocation $423,948 $508,360 $513,532 $598,870 $90,510 17.8% 54107-Fleet Maintenance Allocation $302,958 $456,156 $456,156 $526,014 $69,858 15.3% 54108-Building & Ops Allocation $374,979 $368,187 $368,187 $404,992 $36,805 10% 54109-Engineering Service Charges $875,776 $906,108 $906,108 $1,383,490 $477,382 52.7% Total Internal Services Charge:$6,100,812 $7,727,031 $7,682,403 $9,171,650 $1,444,619 18.7% Transfers 59201-Transfers Out $825,418 $13,134 $13,134 $13,134 $0 0% Total Transfers:$825,418 $13,134 $13,134 $13,134 $0 0% Capital Projects & Equipment Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 315 61203-Computer Equipment & Software $119 $0 $0 $0 $0 0% 61301-Machinery $0 $170,000 $0 $0 -$170,000 -100% 61401-Vehicles $2,865,984 $3,270,480 $3,415,295 $2,607,793 -$662,687 -20.3% 62201-Building & Facility Improv $5,398,425 $4,435,000 $5,959,951 $12,315,000 $7,880,000 177.7% 62202-Landscape & Site Improvements $110,186 $950,000 $1,259,834 $843,000 -$107,000 -11.3% 62211-Street & Sidewalks Improv $7,333,737 $12,578,000 $6,945,423 $5,750,000 -$6,828,000 -54.3% 62221-Utility Improvements $1,980,073 $9,230,000 $6,387,330 $7,183,337 -$2,046,663 -22.2% 62231-Other Infrastructure Improv $1,460,113 $5,750,000 $3,654,959 $1,384,000 -$4,366,000 -75.9% Total Capital Projects & Equipment:$19,148,638 $36,383,480 $27,622,792 $30,083,130 -$6,300,350 -17.3% Debt Service 71101-Bond Principal $1,915,000 $1,980,000 $1,960,001 $1,835,000 -$145,000 -7.3% 71102-Bond Interest $579,943 $562,645 $558,541 $1,125,847 $563,202 100.1% 71103-Bond Administration Fee $9,280 $9,480 $9,480 $11,280 $1,800 19% 72101-Land Leases $562,413 $605,000 $605,000 $853,437 $248,437 41.1% 71107-POB Miscellaneous Principal $313,103 $336,270 $314,899 $346,533 $10,263 3.1% 71108-POB Miscellaneous Interest $184,911 $194,882 $184,162 $195,273 $391 0.2% Total Debt Service:$3,564,650 $3,688,277 $3,632,083 $4,367,370 $679,093 18.4% Total Expense Objects:$59,192,752 $79,818,612 $71,121,746 $76,584,007 -$3,234,605 -4.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $10,604,496 $12,166,344 $12,399,477 $12,720,950 $554,606 4.6% Street Lighting & Landscape Fund $687,404 $704,331 $660,853 $675,465 -$28,866 -4.1% Gas Tax Fund $1,220,178 $2,075,138 $3,721,896 $2,262,690 $187,552 9% Grants Fund $0 $5,320,000 $424,849 $0 -$5,320,000 -100% Prop. C Fund $2,937,205 $1,060,138 $253,372 $685,664 -$374,474 -35.3% AB 2766 Air Quality Fund $2,917 $673 $82,214 $673 $0 0% Measure R Fund $1,085,154 $2,470,138 $924,535 $379,753 -$2,090,385 -84.6% Measure M Fund $1,870,116 $6,218,138 $1,347,371 $1,534,832 -$4,683,306 -75.3% Measure W Fund $430,077 $100,000 $2,368,071 $4,107,744 $4,007,744 4,007.7% Capital Improvement Fund $3,139,879 $4,384,456 $5,923,361 $7,374,576 $2,990,120 68.2% UAD Construction Fund $699,195 $0 $301,086 $0 $0 0% Water Fund $17,684,516 $19,150,131 $18,370,490 $19,586,471 $436,340 2.3% Storm Drain Fund $1,211,966 $2,613,335 $4,560,093 $2,657,941 $44,606 1.7% Sewer Fund $3,390,200 $8,305,857 $4,048,028 $5,998,920 -$2,306,937 -27.8% Parking Fund $3,070,335 $4,290,885 $4,538,779 $8,185,111 $3,894,226 90.8% County Parking Lots Fund $747,131 $890,901 $872,830 $1,188,011 $297,110 33.3% State Pier & Parking Lot Fund $1,973,088 $935,275 $1,271,204 $702,081 -$233,194 -24.9% Fleet Management Fund $4,359,013 $4,930,447 $4,879,037 $4,306,751 -$623,696 -12.6% Building Maintenance & Ops Fund $2,496,205 $2,470,974 $2,463,724 $2,638,495 $167,521 6.8% Spec. Assess. Redemption Fund $676,204 $716,425 $706,425 $509,025 -$207,400 -28.9% Spec. Assess. UAD 12 & 14 Fund $586,117 $608,057 $603,057 $604,907 -$3,150 -0.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 316 Spec. Assess. UAD 19-4 Fund $321,355 $337,793 $332,793 $338,143 $350 0.1% Section 115 Trust Fund $0 $69,176 $68,201 $125,804 $56,628 81.9% Total:$59,192,752 $79,818,612 $71,121,746 $76,584,007 -$3,234,605 -4.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 317 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 318 PUBLIC WORKS ADMINISTRATION PROGRAM OVERVIEW The Administrative Division is responsible for determining the policies and programs of the Public Works Department. Specifically, planning, organizing, directing and coordinating operations. The department work plan, operational budget, and Capital Improvement Plan are managed by the Administrative team. Additional core tasks include payroll, purchasing, HR-supported functions, and public records requests. OBJECTIVES FY 2026 Complete the third performance audit of the City’s waste hauling franchise agreement. Continue implementing the recommended actions from the SB1383 Gap Analysis report. Work with the City Council and Waste Management to resolve contractual issues related to diversion rates. Implement Council direction to update the refuse enclosure standards in the Manhattan Beach Municipal Code. Lead efforts to complete the following City Council Work Plan items: Downtown and North Manhattan Beach Beautification Parking Meter & Kiosk Exploration Community Education Regarding Recycling and Its Relation to Organic Waste Improve public engagement outcomes related to the department’s projects Secure authorization to pump additional groundwater in excess of the City’s adjudicated rights. Complete an operational analysis of a departmental program. Review safety training needs and develop a multi-year safety training plan and common expectations for safety training. Develop a mutual aid agreement with nearby cities to assist with emergency preparedness and response. Provide interdepartmental support for the following City Council Work Plans: Park Master Plan Community Arts Grant Program & Policy Development Assessment of Historical Artifacts and Structural Review of Historical Parking Authority Study Evaluation of Opportunities for the City's Involvement in the 2026 FIFA World Cup and 2028 Summer Olympics Exploration Of Parking And Complete Street Opportunities Adjacent To The Joslyn Community Center And Live Oak Park Public Art Program & New Art Initiatives Exploration of Options for the Redevelopment of Parking Lot 3 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Analyst -1.00 1.00 Executive Assistant 1.00 1.00 1.00 Field Operations Manager 1.00 1.00 1.00 Maintenance Inspector 1.00 -- Maintenance Supervisor -1.00 - Public Works Director 1.00 1.00 1.00 Senior Management Analyst 1.00 -1.00 Solid Waste Administrator -1.00 1.00 Utilities Manager 1.00 1.00 1.00 Wastewater Supervisor 1.00 1.00 1.00 7.00 8.00 8.00 2,080 hours are budgeted in FY 2025-2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 319 Salaries & Benefits (60.6%)Salaries & Benefits (60.6%)Salaries & Benefits (60.6%)Internal Services Charge (19.7%)Internal Services Charge (19.7%)Internal Services Charge (19.7%) Debt Service (10.7%)Debt Service (10.7%)Debt Service (10.7%) Materials & Services (8.6%)Materials & Services (8.6%)Materials & Services (8.6%) Transfers (0.4%)Transfers (0.4%)Transfers (0.4%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $973,120 $1,055,949 $1,084,075 $1,146,531 $90,582 8.6% 51103-Part Time Employee Salaries $42,014 $54,288 $54,288 $54,288 $0 0% 51104-Overtime Regular Employees $12,339 $3,000 $3,000 $3,000 $0 0% 51201-Group Medical Insurance $140,492 $150,412 $144,073 $148,204 -$2,208 -1.5% 51202-Medicare $14,722 $15,548 $15,771 $17,412 $1,864 12% 51203-Medical Retirement Contrs $0 $0 $0 $4,581 $4,581 N/A 51204-401A Plan City $31,979 $32,915 $37,501 $40,628 $7,713 23.4% 51205-Contributions to City Pension $5,790 $6,083 $6,083 $6,329 $246 4% 51211-PERS Regular Contributions $93,051 $101,872 $99,561 $112,926 $11,054 10.9% 51213-PERS Regular Net Pension Liab $0 $69,176 $68,201 $125,804 $56,628 81.9% 51231-Unemployment $6,204 $6,200 $6,200 $6,200 $0 0% 51232-Workers Compensation $0 $196,020 $196,020 $149,760 -$46,260 -23.6% Total Salaries & Benefits:$1,319,711 $1,691,463 $1,714,773 $1,815,663 $124,200 7.3% Materials & Services 52101-Contract Services $262,109 $325,400 $381,275 $95,001 -$230,399 -70.8% 52201-Departmental Supplies $4,172 $12,500 $12,500 $12,500 $0 0% 52202-Office Supplies $7,731 $14,000 $10,000 $10,000 -$4,000 -28.6% 52203-Printing $518 $1,250 $1,000 $1,000 -$250 -20% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 320 EXPENDITURES BY TYPE 52204-Postage $1,807 $145 $145 $145 $0 0% 52205-Uniforms/Safety Equipment $1,852 $450 $450 $600 $150 33.3% 52206-Advertising $7,600 $50,000 $50,000 $50,000 $0 0% 52301-Training, Conf & Meetings $15,763 $18,400 $18,000 $18,000 -$400 -2.2% 52304-Employee Awards & Events $5,620 $5,000 $5,000 $5,000 $0 0% 52307-Memberships & Dues $9,663 $11,640 $10,565 $11,520 -$120 -1% 52308-Reference Books & Periodicals $218 $250 $250 $250 $0 0% 52801-Computers, Supplies & Software $539 $10,000 $3,000 $3,000 -$7,000 -70% 53101-Telephone $2,024 $2,808 $2,808 $2,850 $42 1.5% 53102-Electricity $0 $0 $0 $25,000 $25,000 N/A 53103-Natural Gas $16,077 $23,071 $23,071 $23,417 $346 1.5% 53105 Postage Allocation $0 $0 $0 $151 $151 N/A Total Materials & Services:$335,692 $474,914 $518,064 $258,434 -$216,480 -45.6% Internal Services Charge 54101-Administrative Service Charge $672 $673 $673 $673 $0 0% 54102-Warehouse Purchases $1,292 $2,000 $1,500 $1,500 -$500 -25% 54104-Information Systems Allocation $122,568 $125,822 $125,822 $179,168 $53,346 42.4% 54105-Insurance Allocation $59,256 $856,140 $856,140 $378,180 -$477,960 -55.8% 54106-Fleet Rental Allocation $13,092 $6,210 $6,210 $18,310 $12,100 194.8% 54107-Fleet Maintenance Allocation $10,834 $14,747 $14,747 $11,785 -$2,962 -20.1% Total Internal Services Charge:$207,714 $1,005,592 $1,005,092 $589,616 -$415,976 -41.4% Transfers 59201-Transfers Out $13,273 $13,134 $13,134 $13,134 $0 0% Total Transfers:$13,273 $13,134 $13,134 $13,134 $0 0% Capital Projects & Equipment 62231-Other Infrastructure Improv $2,245 $0 $81,541 $0 $0 0% Total Capital Projects & Equipment:$2,245 $0 $81,541 $0 $0 0% Debt Service 71107-POB Miscellaneous Principal $195,274 $194,095 $197,065 $204,897 $10,802 5.6% 71108-POB Miscellaneous Interest $115,720 $112,486 $115,244 $115,456 $2,970 2.6% Total Debt Service:$310,994 $306,581 $312,309 $320,353 $13,772 4.5% Total Expense Objects:$2,189,628 $3,491,684 $3,644,913 $2,997,200 -$494,484 -14.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $2,186,711 $3,421,835 $3,494,498 $2,870,723 -$551,112 -16.1% AB 2766 Air Quality Fund $2,917 $673 $82,214 $673 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 321 Section 115 Trust Fund $0 $69,176 $68,201 $125,804 $56,628 81.9% Total:$2,189,628 $3,491,684 $3,644,913 $2,997,200 -$494,484 -14.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 322 CIVIL ENGINEERING PROGRAM OVERVIEW The Engineering Division ensures the efficient planning, coordination, and execution of a wide range of public infrastructure projects in the City of Manhattan Beach. This includes managing the design and construction of key infrastructure systems such as streets, water, sewer, storm drains, park facilities, transportation and traffic signals, and City buildings (e.g., fire stations, community centers, and parking structures). The division also maintains the City’s public infrastructure record drawings and data. Additionally, it oversees the review, coordination, and permitting of private encroachments and utility company activities within the public right-of-way. The division further supports the Community Development Department by reviewing private development proposals to ensure alignment with the City’s General Plan and orderly development practices. OBJECTIVES FY 2026 Updated Public Works Specifications Complete construction of the Citywide Security Camera Project – Phase 3 Complete construction of the Aviation and 33rd Missing Sidewalk Project Complete construction of the Annual Street Resurfacing Project – Cycle 3 Complete construction of the Annual Water Infrastructure Improvements Project – Cycle 3 Begin design of the Annual Water Infrastructure Improvements Project – Cycle 4 Complete construction of the Annual Sewer Infrastructure Improvements Project – Cycle 3 Begin design of the Annual Sewer Infrastructure Improvement Project – Cycle 4 Complete construction of the Annual Storm Drain Infrastructure Improvements Project – Cycle 3 Complete construction of the CDBG ADA Curb Ramp Project – Cycle 4 Begin design of the CDBG ADA Curb Ramp Project – Cycle 5 Complete construction of the Citywide Concrete Repairs Project – Cycle 3 Complete construction of the Biennial Slurry Seal Project – Cycle 3 Complete construction of the Beach Cities Green Street Project Complete construction for the Manhattan Beach Boulevard and Aviation Boulevard Left-hand Turn Lane and Intersection Improvements Project. Completed the Pier Structural Inspection Assessment Report. Complete right-of-way acquisition and design of Manhattan Beach Boulevard and Sepulveda Intersection Improvements Project Conduct Proposition 218 hearing for the formation of the Underground Districts 8 and 13 Continue refining the Municipal Code and Formation Policies for Utility Undergrounding Assessment Districts to streamline the process Continue providing timely reviews and inspections for proposed private development and utility work affecting the public right-of-way and existing public infrastructure, including Low Impact Development (LID) and trash enclosure reviews. Substantial completion of the 2nd Street Water Booster Station Project. Award construction contract for the El Porto Water Infrastructure Improvements Project – Phase 1 Complete construction for Westdrift Lift Station Electrical Upgrades Project. Complete Design for the Dominiguez Channel Project Award construction contract for the Annual Groundwater Wells Maintenance Project Start construction of the 28th Street Stormwater Infiltration Project Start construction of the MBATS System Project Substantially complete construction of the Voorhees Avenue Sewer Lift Station Replacement Project Complete design and award construction contract on the Larsson Street Water Booster Station Project Substantially completed construction of the Pacific Avenue Sewer Lift Station Replacement Project. Complete construction of the Marine Avenue Park Electric Vehicle (EV) Chargers Installation Project. Complete Feasibility Study and begin design for Recycled Water in North Manhattan Beach and Manhattan Beach Boulevard Medians Project. Complete design of the 23 and Peck Stormwater Pump Station Improvements Begin design of the Annual Water Infrastructure Improvements Project – Cycle 4 rd CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 323 Start construction of the Sand Dune Park Improvements Project Begin design of the Manhattan Beach Safe Cycling for improvements along Rosecrans Avenue. Begin design of the Lot 3 Permanent Re-Development Project. Complete the design drawings and release construction bids for Phase 2 City Hall HVAC Complete design and award construction contract of the Poinsettia Lift Station Upgrade, Emergency Storage & Force Main Replace Project Complete construction of the various remodels in City Hall Complete a Complete Streets Corridor Study for Manhattan Beach Boulevard Start construction of the Senior and Scout Community Center Renovation Project Continue coordination with the Water Replenishment District (WRD) for the Brackish Well Project. Complete design of the Manhattan Height restroom renovation project Continue to support the Field Operations and Utilities Divisions with engineering design services Conduct Underground Utility Assessment District Survey of property owners within potential undergrounding districts to assess the level of interest Develop the Fiscal Year 2027-2031 Capital Improvement Program Complete an update to the computer model of the City’s well water system with the treatment plant at Peck Reservoir in operation Complete Design of Pay and Play Replacement of light fixtures and controllers at the Manhattan Village Field Complete design phase of development of the Aquatic Center at Village Field Complete a Feasibility Study for the installation of solar power at City facilities Paint Metlox Parking Structure Waterproofing the parking structure at City Hall and the Police Department Complete replacement of the escalators at Metlox Complete replacement of the elevator at City Hall Complete stormwater capacity analysis of the stormwater sump at American Martyrs School Complete update of the Sewer Master Plan. Award construction contract for the City Buildings Remodel Project for the Warehouse at the Public Works Yard and IT Office. Implement Council direction associated with the acquisition of the property at 400 Manhattan Beach Boulevard. MAJOR SERVICE DELIVERY CHANGES In FY 2026, the Civil Engineering Division will improve public outreach efforts and create more comprehensive action plans before implementing CIPs, with the goal of raising more awareness and encouraging community engagement. During FY 2025, at midyear, the City Council authorized a Project Coordinator position to be added to the Engineering Division. This position will assist with project coordination and related responsibilities for the Field Operations Division. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 1.00 1.00 1.00 Associate Engineer 2.00 3.00 3.00 City Engineer 1.00 1.00 1.00 Management Analyst 1.00 1.00 1.00 Principal Civil Engineer 2.00 3.00 3.00 Project Coordinator --1.00 Public Works Inspector 2.00 2.00 2.00 Senior Civil Engineer 6.00 4.00 4.00 Senior Engineering Technician 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 17.00 17.00 18.00 1,040 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 324 Capital Projects & Equipment (50.7%)Capital Projects & Equipment (50.7%)Capital Projects & Equipment (50.7%) Salaries & Benefits (22.7%)Salaries & Benefits (22.7%)Salaries & Benefits (22.7%) Debt Service (15.6%)Debt Service (15.6%)Debt Service (15.6%) Internal Services Charge (8.3%)Internal Services Charge (8.3%)Internal Services Charge (8.3%) Materials & Services (2.9%)Materials & Services (2.9%)Materials & Services (2.9%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,977,577 $2,090,683 $1,975,089 $2,334,431 $243,748 11.7% 51103-Part Time Employee Salaries $0 $26,780 $30,000 $26,000 -$780 -2.9% 51104-Overtime Regular Employees $1,523 $9,500 $3,600 $5,000 -$4,500 -47.4% 51201-Group Medical Insurance $262,346 $284,199 $281,669 $341,532 $57,333 20.2% 51202-Medicare $28,276 $30,703 $28,946 $34,226 $3,523 11.5% 51204-401A Plan City $59,048 $58,488 $55,500 $65,663 $7,175 12.3% 51211-PERS Regular Contributions $191,949 $202,994 $187,333 $224,376 $21,382 10.5% Total Salaries & Benefits:$2,520,719 $2,703,347 $2,562,137 $3,031,228 $327,881 12.1% Materials & Services 52101-Contract Services $945,189 $224,176 $516,850 $281,050 $56,874 25.4% 52103-Software Purchases and Subscriptions $15,204 $70,170 $64,650 $16,500 -$53,670 -76.5% 52107-Legal Services $73 $0 $0 $0 $0 0% 52201-Departmental Supplies $6,006 $16,000 $17,000 $16,000 $0 0% 52203-Printing $833 $3,000 $1,750 $3,000 $0 0% 52204-Postage $4,291 $4,269 $3,550 $5,000 $731 17.1% 52205-Uniforms/Safety Equipment $3,780 $7,500 $4,100 $6,500 -$1,000 -13.3% 52206-Advertising $133 $0 $0 $0 $0 0% 52301-Training, Conf & Meetings $22,449 $20,000 $17,000 $24,900 $4,900 24.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 325 EXPENDITURES BY TYPE 52307-Memberships & Dues $4,688 $5,000 $7,120 $8,640 $3,640 72.8% 52308-Reference Books & Periodicals $2,149 $4,000 $900 $3,000 -$1,000 -25% 52801-Computers, Supplies & Software $22,898 $23,000 $13,500 $14,000 -$9,000 -39.1% 53101-Telephone $413 $567 $500 $508 -$59 -10.4% 53105 Postage Allocation $0 $0 $0 $4,428 $4,428 N/A Total Materials & Services:$1,028,105 $377,682 $646,920 $383,526 $5,844 1.5% Internal Services Charge 54101-Administrative Service Charge $1,547 $0 $0 $0 $0 0% 54102-Warehouse Purchases $861 $1,500 $960 $1,500 $0 0% 54104-Information Systems Allocation $180,108 $207,838 $207,838 $249,556 $41,718 20.1% 54108-Building & Ops Allocation $114,194 $112,126 $112,126 $123,334 $11,208 10% 54109-Engineering Service Charges $367,175 $425,008 $425,008 $730,938 $305,930 72% Total Internal Services Charge:$663,885 $746,472 $745,932 $1,105,328 $358,856 48.1% Capital Projects & Equipment 62201-Building & Facility Improv $942,193 $1,825,000 $656,439 $2,900,000 $1,075,000 58.9% 62202-Landscape & Site Improvements $110,186 $950,000 $1,259,834 $843,000 -$107,000 -11.3% 62211-Street & Sidewalks Improv $2,556,126 $1,845,000 $340,370 $650,000 -$1,195,000 -64.8% 62231-Other Infrastructure Improv $1,457,868 $5,750,000 $3,573,418 $1,384,000 -$4,366,000 -75.9% Total Capital Projects & Equipment:$5,066,373 $10,370,000 $5,830,061 $5,777,000 -$4,593,000 -44.3% Debt Service 71101-Bond Principal $1,245,000 $1,310,000 $1,290,000 $1,130,000 -$180,000 -13.7% 71102-Bond Interest $329,396 $344,645 $344,645 $942,222 $597,577 173.4% 71103-Bond Administration Fee $9,280 $7,630 $7,630 $9,430 $1,800 23.6% Total Debt Service:$1,583,676 $1,662,275 $1,642,275 $2,081,652 $419,377 25.2% Total Expense Objects:$10,862,758 $15,859,776 $11,427,325 $12,378,734 -$3,481,042 -21.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $3,146,267 $3,402,493 $3,228,895 $3,789,144 $386,651 11.4% Gas Tax Fund $60,138 $60,138 $60,138 $117,690 $57,552 95.7% Grants Fund $0 $5,320,000 $424,849 $0 -$5,320,000 -100% Prop. C Fund $2,577,261 $1,060,138 $100,659 $685,664 -$374,474 -35.3% Measure R Fund $60,138 $60,138 $60,138 $19,753 -$40,385 -67.2% Measure M Fund $41,382 $60,138 $60,138 $79,832 $19,694 32.7% Capital Improvement Fund $2,694,703 $4,234,456 $5,549,147 $6,234,576 $2,000,120 47.2% UAD Construction Fund $699,195 $0 $301,086 $0 $0 0% Spec. Assess. Redemption Fund $676,204 $716,425 $706,425 $509,025 -$207,400 -28.9% Spec. Assess. UAD 12 & 14 Fund $586,117 $608,057 $603,057 $604,907 -$3,150 -0.5% Spec. Assess. UAD 19-4 Fund $321,355 $337,793 $332,793 $338,143 $350 0.1% Total:$10,862,758 $15,859,776 $11,427,325 $12,378,734 -$3,481,042 -21.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 326 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 327 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 328 STREET MAINTENANCE PROGRAM OVERVIEW The Street Maintenance Section is responsible for inspecting, maintaining, and repairing streets, alleys, sidewalks, curbs, and signs and markings for the safety and security of the community. This includes filling potholes, patching streets, repairing City parking lots as well as assisting in larger capital improvement projects. Staff oversees graffiti removal from City-owned property and continues to meet the City's 24-hour abatement window as well as providing field staff with necessary supplies and materials to remove minor tagging when deemed necessary. OBJECTIVES FY 2026 Refine the approach and frequency of pressure washing and detailing the Metlox Parking structure. Perform in-depth trash receptacle maintenance along the Strand and City-maintained receptacles at bus stops. Refresh all curb markings throughout the City. Refresh paint and striping in all city parking lots. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 0.25 -- Field Operations Supervisor 1.00 1.00 1.00 Lead Maintenance Worker 3.00 3.00 2.00 Maintenance Worker I/II 6.50 6.50 7.00 Senior Management Analyst 0.175 -- Urban Forester 1.00 1.00 1.00 11.925 11.50 11.00 2,548 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 329 Capital Projects & Equipment (56.8%)Capital Projects & Equipment (56.8%)Capital Projects & Equipment (56.8%) Materials & Services (17.6%)Materials & Services (17.6%)Materials & Services (17.6%) Salaries & Benefits (16.7%)Salaries & Benefits (16.7%)Salaries & Benefits (16.7%) Internal Services Charge (8.8%)Internal Services Charge (8.8%)Internal Services Charge (8.8%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $963,074 $885,894 $1,059,041 $918,782 $32,888 3.7% 51103-Part Time Employee Salaries $126,991 $74,896 $74,896 $74,896 $0 0% 51104-Overtime Regular Employees $203,387 $32,737 $160,420 $110,420 $77,683 237.3% 51107-Overtime Special Events $22,957 $69,987 $69,987 $69,987 $0 0% 51201-Group Medical Insurance $213,545 $201,198 $250,868 $223,736 $22,538 11.2% 51202-Medicare $18,688 $14,483 $19,326 $14,409 -$74 -0.5% 51204-401A Plan City $11,160 $10,053 $15,126 $11,103 $1,050 10.4% 51211-PERS Regular Contributions $96,503 $86,296 $102,145 $87,592 $1,296 1.5% 51232-Workers Compensation $175,320 $0 $0 $0 $0 0% Total Salaries & Benefits:$1,831,626 $1,375,544 $1,751,809 $1,510,925 $135,381 9.8% Materials & Services 52101-Contract Services $559,934 $782,771 $775,357 $850,447 $67,676 8.6% 52201-Departmental Supplies $535,741 $358,134 $325,603 $358,682 $548 0.2% 52203-Printing $71 $200 $0 $200 $0 0% 52205-Uniforms/Safety Equipment $12,165 $16,973 $16,973 $17,283 $310 1.8% 52206-Advertising $159 $150 $150 $150 $0 0% 52301-Training, Conf & Meetings $35,417 $30,000 $30,000 $30,000 $0 0% 52307-Memberships & Dues $490 $1,705 $1,155 $1,155 -$550 -32.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 330 EXPENDITURES BY TYPE 52801-Computers, Supplies & Software $223 $0 $740 $0 $0 0% 53101-Telephone $132 $181 $150 $152 -$29 -16% 53102-Electricity $229,874 $147,818 $244,000 $257,806 $109,988 74.4% 53104-Water $78,910 $72,318 $72,318 $76,926 $4,608 6.4% Total Materials & Services:$1,453,116 $1,410,250 $1,466,446 $1,592,801 $182,551 12.9% Internal Services Charge 54102-Warehouse Purchases $22,393 $28,469 $13,309 $28,469 $0 0% 54104-Information Systems Allocation $122,568 $128,618 $128,618 $161,135 $32,517 25.3% 54105-Insurance Allocation $241,801 $71,400 $71,400 $175,680 $104,280 146.1% 54106-Fleet Rental Allocation $156,000 $167,820 $167,820 $233,990 $66,170 39.4% 54107-Fleet Maintenance Allocation $125,304 $187,005 $187,005 $197,289 $10,284 5.5% 54109-Engineering Service Charges $71,203 $0 $0 $0 $0 0% Total Internal Services Charge:$739,269 $583,312 $568,152 $796,563 $213,251 36.6% Capital Projects & Equipment 61301-Machinery $0 $20,000 $0 $0 -$20,000 -100% 61401-Vehicles $0 $0 $0 $25,000 $25,000 N/A 62211-Street & Sidewalks Improv $4,747,709 $10,733,000 $6,340,315 $5,100,000 -$5,633,000 -52.5% Total Capital Projects & Equipment:$4,747,709 $10,753,000 $6,340,315 $5,125,000 -$5,628,000 -52.3% Total Expense Objects:$8,771,720 $14,122,106 $10,126,722 $9,025,289 -$5,096,817 -36.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $3,952,808 $3,389,106 $3,786,407 $3,925,289 $536,183 15.8% Gas Tax Fund $1,160,040 $2,015,000 $3,661,758 $2,145,000 $130,000 6.5% Prop. C Fund $359,944 $0 $152,713 $0 $0 0% Measure R Fund $1,025,016 $2,410,000 $864,397 $360,000 -$2,050,000 -85.1% Measure M Fund $1,828,735 $6,158,000 $1,287,233 $1,455,000 -$4,703,000 -76.4% Capital Improvement Fund $445,176 $150,000 $374,214 $1,140,000 $990,000 660% Total:$8,771,720 $14,122,106 $10,126,722 $9,025,289 -$5,096,817 -36.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 331 BUILDING & GROUNDS MAINTENANCE PROGRAM OVERVIEW The skilled staff of the Building and Grounds Maintenance Section is responsible for the maintenance and repair of the municipal facilities, parks, and athletic fields that the City oversees. Their services provide safe, clean, and well-maintained facilities and equipment. Additionally, the section electrician, with assistance from the crew, provides electrical support for City special events, including but not limited to Pier Lighting and fireworks, Old Hometown Fair, and Concerts in the Park as well as evaluates Public Work projects that consume electrical energy. OBJECTIVES FY 2026 Support the Engineering Division with the installation of additional EV charging stations in at Marine Avenue Park. Assist the Engineering Division with the remodel of various City facilities. Complete Phase 2 of the comprehensive HVAC upgrade at City Hall. Implement Recommendations from the Operational Analysis of the Urban Forestry Program. Implement the next year’s action items as outlined in the Urban Forest Master Plan. Plant 100 trees. Complete the Police Station Flooring Replacement Project. Complete renovations on the historical Red House in Polliwog Park. Install panic buttons at key City facilities. Support the Engineering Division with the modernization of all four escalators at Metlox. Support efforts to install an INSB Radio Site in the public safety building. Install Blue Light Zones in the Civic Center Parking Lots. Address bird cleanliness issues at Polliwog Park. Revise the Municipal Code to enhance parkway maintenance language for debris removal and tree protection. Continue to install energy efficient LED lighting at PD and FD with occupancy sensors. Update inground electrical for downtown tree lighting. Replace electrical panel at Polliwog for pole lights. Perform in-depth trash receptacle maintenance in all of the City’s parks. Replace the baseball/softball foul ball poles at Marine Sports Complex. Complete the design process for enhancing the irrigation system at Polliwog Park. Complete an irrigation system inventory and assessment. Implement an irrigation central control program. Improve the Veterans Parkway Greenbelt, including reclaiming proper planter bed and lawn definitions. MAJOR SERVICE DELIVERY CHANGES In FY 2026, the Buildings and Grounds division will add two part-time maintenance workers and purchase a mini-excavator. The additional staffing will increase the City’s capacity to provide consistent and timely upkeep of park facilities, ensuring clean, safe, and welcoming public spaces. In addition, the mini-excavator will improve efficiency in both the Utilities and Field Operations Division by increasing crew productivity, reducing manual labor, and expediting excavation tasks. This will allow for faster project completion and more responsive service delivery. To improve safety and infrastructure reliability, the City will implement grounding work in the data centers and data rooms at City Hall and the Public Safety facility, ensuring network racks are properly grounded to protect staff and equipment from electric shock, lightning strikes, and electrical interference. Additionally, the lighting at the Mira Costa High School tennis courts will be upgraded to address current visibility issues that pose safety concerns for instructors, students, and other players, enhancing both safety and usability during evening hours. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 332 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 0.45 -- Building Maintenance Technician 3.00 3.00 3.00 Electrician 0.80 0.80 0.80 Facilities Supervisor 1.00 1.00 1.00 Lead Maintenance Worker --1.00 Maintenance Assistant -0.09 0.09 Maintenance Supervisor -0.09 0.09 Maintenance Worker I/II 1.50 1.68 1.18 Senior Management Analyst 0.35 -- 7.10 6.66 7.16 1,920 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 333 Materials & Services (73.8%)Materials & Services (73.8%)Materials & Services (73.8%) Salaries & Benefits (20.9%)Salaries & Benefits (20.9%)Salaries & Benefits (20.9%) Internal Services Charge (4.1%)Internal Services Charge (4.1%)Internal Services Charge (4.1%) Debt Service (0.6%)Debt Service (0.6%)Debt Service (0.6%) Capital Projects & Equipment (0.5%)Capital Projects & Equipment (0.5%)Capital Projects & Equipment (0.5%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $515,201 $495,087 $490,319 $603,244 $108,157 21.8% 51103-Part Time Employee Salaries $32,735 $0 $30,000 $66,546 $66,546 N/A 51104-Overtime Regular Employees $232,808 $35,500 $170,500 $70,000 $34,500 97.2% 51201-Group Medical Insurance $160,888 $142,496 $146,883 $174,333 $31,837 22.3% 51202-Medicare $11,185 $8,194 $12,079 $8,746 $552 6.7% 51204-401A Plan City $5,263 $4,703 $4,989 $5,708 $1,005 21.4% 51211-PERS Regular Contributions $50,048 $48,238 $50,788 $57,167 $8,929 18.5% 51213-PERS Regular Net Pension Liab $0 $7,028 $7,666 $12,781 $5,753 81.9% 51232-Workers Compensation $600 $0 $0 $0 $0 0% Total Salaries & Benefits:$1,008,727 $741,246 $913,224 $998,525 $257,279 34.7% Materials & Services 52101-Contract Services $1,543,799 $2,257,311 $2,009,437 $2,401,835 $144,524 6.4% 52103-Software Purchases and Subscriptions $0 $0 $0 $165,824 $165,824 N/A 52201-Departmental Supplies $495,521 $440,268 $430,306 $359,306 -$80,962 -18.4% 52202-Office Supplies $0 $0 $78 $0 $0 0% 52203-Printing $0 $150 $150 $150 $0 0% 52205-Uniforms/Safety Equipment $10,726 $11,015 $11,015 $11,222 $207 1.9% 52207-Tools & Minor Equipment $12,797 $0 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 334 EXPENDITURES BY TYPE 52301-Training, Conf & Meetings $10,958 $10,000 $5,000 $10,000 $0 0% 52801-Computers, Supplies & Software $726 $223,824 $166,824 $1,000 -$222,824 -99.6% 53101-Telephone $962 $1,052 $1,145 $1,162 $110 10.5% 53102-Electricity $112,080 $97,061 $150,000 $151,024 $53,963 55.6% 53103-Natural Gas $5,329 $10,798 $6,240 $6,334 -$4,464 -41.3% 53104-Water $376,407 $417,452 $433,893 $417,751 $299 0.1% Total Materials & Services:$2,569,305 $3,468,931 $3,214,088 $3,525,608 $56,677 1.6% Internal Services Charge 54102-Warehouse Purchases $49,034 $41,030 $41,030 $41,030 $0 0% 54104-Information Systems Allocation $57,984 $65,241 $65,241 $70,969 $5,728 8.8% 54106-Fleet Rental Allocation $35,028 $18,570 $19,050 $9,460 -$9,110 -49.1% 54107-Fleet Maintenance Allocation $44,081 $57,579 $57,579 $73,673 $16,094 28% Total Internal Services Charge:$186,127 $182,420 $182,900 $195,132 $12,712 7% Transfers 59201-Transfers Out $9,040 $0 $0 $0 $0 0% Total Transfers:$9,040 $0 $0 $0 $0 0% Capital Projects & Equipment 61401-Vehicles $0 $0 $1,534 $25,000 $25,000 N/A Total Capital Projects & Equipment:$0 $0 $1,534 $25,000 $25,000 N/A Debt Service 71107-POB Miscellaneous Principal $26,283 $19,808 $26,283 $19,203 -$605 -3.1% 71108-POB Miscellaneous Interest $15,434 $11,479 $15,372 $10,821 -$658 -5.7% Total Debt Service:$41,716 $31,287 $41,655 $30,024 -$1,263 -4% Total Expense Objects:$3,814,915 $4,423,884 $4,353,401 $4,774,289 $350,405 7.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS General Fund $1,318,710 $1,952,910 $1,889,677 $2,135,794 $182,884 9.4% Building Maintenance & Ops Fund $2,496,205 $2,470,974 $2,463,724 $2,638,495 $167,521 6.8% Total:$3,814,915 $4,423,884 $4,353,401 $4,774,289 $350,405 7.9% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 335 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 336 STREET LIGHTING & LANDSCAPE PROGRAM OVERVIEW The City formed several Street Lighting & Landscaping Assessment Districts in the early 1970s, under the Landscaping and Lighting Act of 1972. Property owners pay an assessment to this program that provides energy payment and maintenance costs for one thousand eight hundred and eighty-five (1,885) streetlights. Zone 10 of the Manhattan Beach Street Lighting & Landscaping Assessment District was established as a Streetscape District. The method of assessment to the property owners, which was approved at the time of the district's formation, was in proportion to the property's street frontage in the Downtown area. The County of Los Angeles collects the assessments through property tax rolls and then remits these funds to the City. OBJECTIVES FY 2026 Objectives incorporated in other areas of the Public Works budget. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 337 Materials & Services (84%)Materials & Services (84%)Materials & Services (84%) Capital Projects & Equipment (11.1%)Capital Projects & Equipment (11.1%)Capital Projects & Equipment (11.1%) Internal Services Charge (4.9%)Internal Services Charge (4.9%)Internal Services Charge (4.9%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,245 $0 $0 $0 $0 0% 51104-Overtime Regular Employees $308 $0 $0 $0 $0 0% 51201-Group Medical Insurance $274 $0 $0 $0 $0 0% 51202-Medicare $22 $0 $0 $0 $0 0% 51211-PERS Regular Contributions $124 $0 $0 $0 $0 0% Total Salaries & Benefits:$1,973 $0 $0 $0 $0 0% Materials & Services 52101-Contract Services $101,943 $103,901 $98,692 $99,896 -$4,005 -3.9% 52201-Departmental Supplies $8,014 $22,419 $17,500 $18,500 -$3,919 -17.5% 52206-Advertising $0 $400 $400 $400 $0 0% 53102-Electricity $276,613 $318,198 $312,100 $325,476 $7,278 2.3% 53103-Natural Gas $129,039 $151,876 $110,000 $111,650 -$40,226 -26.5% 53104-Water $7,664 $10,570 $11,000 $11,432 $862 8.2% Total Materials & Services:$523,274 $607,364 $549,692 $567,354 -$40,010 -6.6% Internal Services Charge 54101-Administrative Service Charge $21,972 $21,967 $21,967 $21,967 $0 0% 54106-Fleet Rental Allocation $0 $0 $348 $520 $520 N/A Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 338 EXPENDITURES BY TYPE 54107-Fleet Maintenance Allocation $0 $0 $0 $6,508 $6,508 N/A 54109-Engineering Service Charges $0 $0 $0 $4,116 $4,116 N/A Total Internal Services Charge:$21,972 $21,967 $22,315 $33,111 $11,144 50.7% Transfers 59201-Transfers Out $6,071 $0 $0 $0 $0 0% Total Transfers:$6,071 $0 $0 $0 $0 0% Capital Projects & Equipment 62201-Building & Facility Improv $134,114 $75,000 $88,846 $75,000 $0 0% Total Capital Projects & Equipment:$134,114 $75,000 $88,846 $75,000 $0 0% Total Expense Objects:$687,404 $704,331 $660,853 $675,465 -$28,866 -4.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Street Lighting & Landscape Fund $687,404 $704,331 $660,853 $675,465 -$28,866 -4.1% Total Street Lighting & Landscape Fund:$687,404 $704,331 $660,853 $675,465 -$28,866 -4.1% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 339 WATER PROGRAM OVERVIEW The City’s Water Section consists of water treatment and water maintenance operations. These two sections oversee the water source of supply, water distribution maintenance, water quality, and water treatment. The City’s goal is to enhance operational efficiencies, improve the City’s infrastructure through scheduled maintenance and replacement programs, and meet compliance with new State and Federal regulations. The City’s water treatment, storage, and distribution system includes a green sand filtration system capable of treating groundwater from its two wells at a rate of 3,300 gallons minute; two reservoirs with a combined storage capacity of 10 million gallons; one elevated storage tank with a storage capacity of 300,000 gallons; one imported water connection with the Metropolitan Water District of Southern California with a production capacity of 6,732 gallons per minute; booster stations with a total delivery capacity of 19,702 gallons per minute; two 18-inch emergency water connections with the City of El Segundo and one 8-inch with California Water Service Company; five emergency generators at the wells and booster stations; approximately 140 miles of water distribution pipelines ranging in diameter from 4" to 24"; and over 2,781 valves, 826 Fire Hydrants, and 900 backflow devices. With the Peck Reservoir Treatment Plant now operational, the City can fully utilize its adjudicated rights for water extraction within the West Coast Groundwater Basin. This represents approximately 26.7% (360 million gallons) of the City’s annual need for drinking water. The remainder is imported water provided by the Metropolitan Water District (MWD). Groundwater rates are currently 23% of the cost of imported water rates. Increased expenses associated with the new treatment plant include energy, chemicals, maintenance supplies, personal protective equipment (PPE), safety training, regulatory compliance, laboratory testing, and public outreach and education. OBJECTIVES FY 2026 Increase groundwater production beyond adjudicated rights through leasing from other rights holders. Develop an ordinance establishing water standards and policies, including “will serve” requirements. Enhance security water facilities. Enhance emergency response and preparedness in accordance with established plans. Develop and implement a Leak Detection program. Execute an engineered unidirectional flushing program. Procure a mini excavator and trailer to enhance safety and efficiency in small work areas, such as alleys and walk streets. Establish SOPs regarding the maintenance of newly constructed infrastructure. Update Urban Water Management Plan and Water Shortage Contingency Plan. Initiate work plan based on the Cross Connection Control Plan. Ensure that 100% of backflow devices in the system are tested and comply with State standards. Continue water conservation studies relating to indoor water usage. Conduct triennial Lead & Copper Rule sampling program. Ensure regulatory compliance and long-term water sustainability by updating the Urban Water Management Plan and Water Shortage Contingency Plan. MAJOR SERVICE DELIVERY CHANGES The FY 2026 Budget includes the upgrade one Utilities Technician to Cross-Connection Control Specialist to ensure compliance with state laws, safeguarding public health, and protecting the City of Manhattan Beach's water distribution system from potential contamination or backflow incidents. Additionally, the budget incorporates an adjustment to the City's water resource allocation which will enable the City to reduce reliance on external water purchases. The increased costs in this category will be fully offset by corresponding reductions in expenses for purchased drinking water, ensuring a more sustainable and cost-effective water supply for the community. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 340 AUTHORIZED FULL-TIME POSITIONS FY 2025 Adopted FY 2026 Adopted FY 2026 Proposed Administrative Assistant 0.45 0.45 0.45 Cross-Connection Control Specialist (or similar title)--1.00 Electrician 0.45 0.45 0.45 Lead Water System Operator 1.00 2.00 2.00 Lead Water Treatment Operator 1.00 1.00 1.00 Senior Management Analyst -0.45 - Utilities Technician 2.00 2.00 1.00 Water Compliance Supervisor 0.45 0.45 0.45 Water Meter Technician 1.00 1.00 1.00 Water Supervisor 1.00 1.00 - Water Superintendent --1.00 Water System Operator I/II 3.00 4.00 4.00 Water System Operator III 2.00 1.00 1.00 Water Treatment Operator 2.00 2.00 2.00 14.35 15.80 15.35 900 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 341 Materials & Services (54.1%)Materials & Services (54.1%)Materials & Services (54.1%) Internal Services Charge (17.9%)Internal Services Charge (17.9%)Internal Services Charge (17.9%) Capital Projects & Equipment (15.8%)Capital Projects & Equipment (15.8%)Capital Projects & Equipment (15.8%) Salaries & Benefits (10.8%)Salaries & Benefits (10.8%)Salaries & Benefits (10.8%) Debt Service (1.3%)Debt Service (1.3%)Debt Service (1.3%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,167,964 $1,289,970 $1,297,335 $1,364,148 $74,178 5.8% 51103-Part Time Employee Salaries $55,254 $51,756 $51,756 $29,322 -$22,434 -43.3% 51104-Overtime Regular Employees $248,111 $155,000 $289,000 $199,000 $44,000 28.4% 51201-Group Medical Insurance $208,167 $257,857 $222,496 $266,175 $8,318 3.2% 51202-Medicare $20,978 $19,454 $22,677 $20,069 $615 3.2% 51204-401A Plan City $9,211 $9,389 $10,009 $7,804 -$1,585 -16.9% 51211-PERS Regular Contributions $110,227 $123,800 $118,746 $127,920 $4,120 3.3% 51213-PERS Regular Net Pension Liab $0 $21,460 $19,373 $39,027 $17,567 81.9% 51221-Accrued Leave -$14,584 $0 $0 $0 $0 0% 51232-Workers Compensation $94,740 $170,820 $170,820 $68,040 -$102,780 -60.2% Total Salaries & Benefits:$1,900,068 $2,099,506 $2,202,212 $2,121,505 $21,999 1% Materials & Services 52101-Contract Services $8,073,756 $8,258,830 $7,833,232 $8,244,990 -$13,840 -0.2% 52103-Software Purchases and Subscriptions $22,720 $67,780 $118,000 $111,113 $43,333 63.9% 52201-Departmental Supplies $592,979 $736,596 $914,096 $931,232 $194,636 26.4% 52203-Printing $0 $600 $203 $600 $0 0% 52204-Postage $10,070 $0 $0 $0 $0 0% 52205-Uniforms/Safety Equipment $14,039 $18,827 $23,038 $20,678 $1,851 9.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 342 EXPENDITURES BY TYPE 52206-Advertising $5,963 $1,000 $1,000 $1,000 $0 0% 52207-Tools & Minor Equipment $2,294 $16,100 $18,100 $20,250 $4,150 25.8% 52301-Training, Conf & Meetings $27,313 $42,600 $49,300 $45,200 $2,600 6.1% 52307-Memberships & Dues $8,122 $11,842 $13,477 $14,027 $2,185 18.5% 52308-Reference Books & Periodicals $0 $4,000 $0 $0 -$4,000 -100% 52404-Bank Service Charge $55,694 $40,000 $70,000 $40,000 $0 0% 52406-Assessments & Taxes $59,430 $503,740 $494,247 $852,372 $348,632 69.2% 52801-Computers, Supplies & Software $6,050 $0 $600 $0 $0 0% 53101-Telephone $46,336 $83,111 $47,800 $48,517 -$34,594 -41.6% 53102-Electricity $198,955 $118,984 $253,000 $230,053 $111,069 93.3% 53103-Natural Gas $183 $215 $215 $218 $3 1.4% 53104-Water $32,977 $42,020 $31,000 $37,933 -$4,087 -9.7% Total Materials & Services:$9,156,880 $9,946,245 $9,867,308 $10,598,183 $651,938 6.6% Internal Services Charge 54101-Administrative Service Charge $1,350,264 $1,350,258 $1,350,258 $2,348,499 $998,241 73.9% 54102-Warehouse Purchases $9,013 $6,930 $6,930 $6,979 $49 0.7% 54104-Information Systems Allocation $235,896 $295,914 $295,914 $350,774 $54,860 18.5% 54105-Insurance Allocation $31,116 $585,180 $585,180 $228,360 -$356,820 -61% 54106-Fleet Rental Allocation $102,732 $130,800 $130,800 $95,010 -$35,790 -27.4% 54107-Fleet Maintenance Allocation $86,221 $135,209 $135,209 $105,996 -$29,213 -21.6% 54108-Building & Ops Allocation $195,589 $192,046 $192,046 $211,244 $19,198 10% 54109-Engineering Service Charges $240,550 $240,550 $240,550 $166,795 -$73,755 -30.7% Total Internal Services Charge:$2,251,382 $2,936,887 $2,936,887 $3,513,657 $576,770 19.6% Transfers 59201-Transfers Out $293,074 $0 $0 $0 $0 0% Total Transfers:$293,074 $0 $0 $0 $0 0% Capital Projects & Equipment 61401-Vehicles $0 $60,000 $60,000 $50,000 -$10,000 -16.7% 62201-Building & Facility Improv $2,340,015 $0 $783,584 $40,000 $40,000 N/A 62221-Utility Improvements $1,502,779 $3,850,000 $2,291,442 $3,000,000 -$850,000 -22.1% Total Capital Projects & Equipment:$3,842,795 $3,910,000 $3,135,026 $3,090,000 -$820,000 -21% Debt Service 71101-Bond Principal $154,158 $154,157 $154,159 $164,210 $10,053 6.5% 71102-Bond Interest $19,521 $12,064 $7,960 $4,105 -$7,959 -66% 71103-Bond Administration Fee $0 $400 $400 $400 $0 0% 71107-POB Miscellaneous Principal $41,984 $57,531 $41,984 $60,384 $2,853 5% 71108-POB Miscellaneous Interest $24,654 $33,341 $24,554 $34,027 $686 2.1% Total Debt Service:$240,317 $257,493 $229,057 $263,126 $5,633 2.2% Total Expense Objects:$17,684,516 $19,150,131 $18,370,490 $19,586,471 $436,340 2.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 343 SOURCE OF FUNDS Water Fund $17,684,516 $19,150,131 $18,370,490 $19,586,471 $436,340 2.3% Total Water Fund:$17,684,516 $19,150,131 $18,370,490 $19,586,471 $436,340 2.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 344 STORM DRAIN PROGRAM OVERVIEW The City owns, operates, and maintains storm drain facilities that consist of 83,538 feet of storm lines and 43,805 feet of Los Angeles County- owned storm lines, including 608 catch basins, 10 continuous deflection systems, two dry weather stormwater diversions, five stormwater sumps, and two lift stations. The majority of the City is within the Santa Monica Bay Watershed (2,078 acres, or 86%). The remaining area is within the Dominguez Channel Watershed (350 acres, or 14%). OBJECTIVES FY 2026 Implement a program to video 10% of stormwater system each year. Create and implement operations and maintenance plans relating to new stormwater infrastructure. Investigate the use of real-time flow monitoring systems to track flow rates and water levels, enabling quick response to potential flooding events. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 0.05 0.05 0.05 Maintenance Assistant -0.29 0.29 Maintenance Supervisor -0.29 0.29 Maintenance Worker I/II -0.58 0.58 Senior Management Analyst -0.10 - Sewer Maintenance Worker I/II 1.00 1.00 1.00 Water Compliance Supervisor 0.10 0.10 0.10 1.15 2.41 2.31 960 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 345 Capital Projects & Equipment (77.4%)Capital Projects & Equipment (77.4%)Capital Projects & Equipment (77.4%) Materials & Services (12.8%)Materials & Services (12.8%)Materials & Services (12.8%) Internal Services Charge (5.5%)Internal Services Charge (5.5%)Internal Services Charge (5.5%) Salaries & Benefits (4.1%)Salaries & Benefits (4.1%)Salaries & Benefits (4.1%) Debt Service (0.2%)Debt Service (0.2%)Debt Service (0.2%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $41,007 $159,310 $102,296 $171,173 $11,863 7.4% 51103-Part Time Employee Salaries $20,223 $31,679 $31,679 $32,093 $414 1.3% 51104-Overtime Regular Employees $93,567 $12,200 $12,200 $12,500 $300 2.5% 51201-Group Medical Insurance $21,619 $27,385 $19,567 $33,678 $6,293 23% 51202-Medicare $2,208 $2,765 $1,663 $2,949 $184 6.7% 51204-401A Plan City $721 $2,266 $2,313 $2,166 -$100 -4.4% 51211-PERS Regular Contributions $4,924 $15,512 $9,944 $16,317 $805 5.2% 51213-PERS Regular Net Pension Liab $0 $2,691 $866 $4,894 $2,203 81.9% Total Salaries & Benefits:$184,267 $253,808 $180,528 $275,770 $21,962 8.7% Materials & Services 52101-Contract Services $499,121 $849,335 $651,717 $757,497 -$91,838 -10.8% 52102-Audit Services $4,425 $0 $0 $0 $0 0% 52103-Software Purchases and Subscriptions $0 $40,280 $17,250 $6,300 -$33,980 -84.4% 52201-Departmental Supplies $115,731 $275,100 $275,100 $47,355 -$227,745 -82.8% 52203-Printing $0 $3,000 $3,000 $3,500 $500 16.7% 52205-Uniforms/Safety Equipment $1,277 $6,035 $36,112 $2,652 -$3,383 -56.1% 52301-Training, Conf & Meetings $8,688 $4,200 $5,088 $5,208 $1,008 24% 52307-Memberships & Dues $0 $60 $139 $83 $23 38.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 346 EXPENDITURES BY TYPE 53101-Telephone $22,487 $28,448 $22,000 $22,330 -$6,118 -21.5% 53102-Electricity $29,727 $15,340 $10,000 $17,062 $1,722 11.2% 53104-Water $1,660 $2,322 $2,000 $2,309 -$13 -0.6% Total Materials & Services:$683,117 $1,224,120 $1,022,406 $864,296 -$359,824 -29.4% Internal Services Charge 54101-Administrative Service Charge $194,712 $194,717 $194,717 $282,280 $87,563 45% 54102-Warehouse Purchases $2,388 $2,000 $2,000 $2,000 $0 0% 54106-Fleet Rental Allocation $0 $0 $0 $2,010 $2,010 N/A 54107-Fleet Maintenance Allocation $0 $0 $0 $6,508 $6,508 N/A 54108-Building & Ops Allocation $16,279 $15,984 $15,984 $17,582 $1,598 10% 54109-Engineering Service Charges $45,479 $0 $0 $64,927 $64,927 N/A Total Internal Services Charge:$258,857 $212,701 $212,701 $375,307 $162,606 76.4% Transfers 59201-Transfers Out $23,505 $0 $0 $0 $0 0% Total Transfers:$23,505 $0 $0 $0 $0 0% Capital Projects & Equipment 61301-Machinery $0 $150,000 $0 $0 -$150,000 -100% 62201-Building & Facility Improv $412,941 $860,000 $2,148,945 $4,305,000 $3,445,000 400.6% 62221-Utility Improvements $72,843 $0 $3,357,079 $933,337 $933,337 N/A Total Capital Projects & Equipment:$485,784 $1,010,000 $5,506,024 $5,238,337 $4,228,337 418.6% Debt Service 71107-POB Miscellaneous Principal $4,103 $8,044 $4,105 $7,659 -$385 -4.8% 71108-POB Miscellaneous Interest $2,410 $4,662 $2,400 $4,316 -$346 -7.4% Total Debt Service:$6,513 $12,706 $6,505 $11,975 -$731 -5.8% Total Expense Objects:$1,642,043 $2,713,335 $6,928,164 $6,765,685 $4,052,350 149.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Measure W Fund $430,077 $100,000 $2,368,071 $4,107,744 $4,007,744 4,007.7% Storm Drain Fund $1,211,966 $2,613,335 $4,560,093 $2,657,941 $44,606 1.7% Total:$1,642,043 $2,713,335 $6,928,164 $6,765,685 $4,052,350 149.3% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 347 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 348 SEWER PROGRAM OVERVIEW The City owns, operates, and maintains the 81.6 miles of sewer gravity lines, 5,114 feet of sewer force mains, 2,086 manholes, and cleanouts. The City also operates and maintains eight pump stations that lift wastewater from lower areas to the local regional gravity systems. Enhance operational efficiencies, improve the City’s infrastructure through scheduled maintenance and replacement programs, and meet compliance with new State and Federal regulations. OBJECTIVES FY 2026 Create a valve maintenance program for Lift Stations to enhance upkeep and reliability. Enhance advanced warning of SSOs by increasing the inventory of Smart Covers from 20 to 27. Investigate further the use data analytics to predict system behavior and optimize maintenance schedules, resource allocation, and system upgrades. Replace access hatches at the Pier sewer vault to improve safety and accessibility. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 0.50 0.50 0.50 Electrician 0.55 0.55 0.55 Lead Maintenance Worker 1.00 -- Lead Sewer Maintenance Worker 1.00 1.00 1.00 Senior Management Analyst -0.45 - Sewer Maintenance Worker I/II 3.00 4.00 4.00 Water Compliance Supervisor 0.45 0.45 0.45 6.50 6.95 6.50 960 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 349 Capital Projects & Equipment (54.2%)Capital Projects & Equipment (54.2%)Capital Projects & Equipment (54.2%) Internal Services Charge (19.2%)Internal Services Charge (19.2%)Internal Services Charge (19.2%) Salaries & Benefits (14%)Salaries & Benefits (14%)Salaries & Benefits (14%) Materials & Services (10.6%)Materials & Services (10.6%)Materials & Services (10.6%) Debt Service (2%)Debt Service (2%)Debt Service (2%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $584,868 $538,333 $620,195 $526,282 -$12,051 -2.2% 51103-Part Time Employee Salaries $55,553 $31,679 $31,679 $32,093 $414 1.3% 51104-Overtime Regular Employees $68,684 $19,194 $75,000 $75,000 $55,806 290.7% 51201-Group Medical Insurance $127,590 $127,813 $141,635 $130,480 $2,667 2.1% 51202-Medicare $10,111 $8,261 $10,407 $8,097 -$164 -2% 51204-401A Plan City $3,243 $4,609 $4,961 $2,570 -$2,039 -44.2% 51211-PERS Regular Contributions $59,581 $52,473 $61,496 $49,429 -$3,044 -5.8% 51213-PERS Regular Net Pension Liab $0 $9,102 $10,472 $16,553 $7,451 81.9% Total Salaries & Benefits:$909,629 $791,464 $955,845 $840,504 $49,040 6.2% Materials & Services 52101-Contract Services $144,834 $382,688 $356,895 $348,050 -$34,638 -9.1% 52103-Software Purchases and Subscriptions $16,453 $142,030 $119,000 $27,750 -$114,280 -80.5% 52201-Departmental Supplies $125,467 $54,600 $54,600 $60,230 $5,630 10.3% 52202-Office Supplies $365 $0 $0 $0 $0 0% 52203-Printing $3,544 $1,200 $1,200 $1,200 $0 0% 52205-Uniforms/Safety Equipment $6,217 $12,130 $12,592 $10,365 -$1,765 -14.6% 52207-Tools & Minor Equipment $69,772 $20,000 $0 $20,000 $0 0% 52301-Training, Conf & Meetings $29,912 $17,100 $36,900 $22,910 $5,810 34% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 350 EXPENDITURES BY TYPE 52307-Memberships & Dues $1,910 $6,714 $8,054 $8,582 $1,868 27.8% 52404-Bank Service Charge $42,855 $15,000 $20,500 $15,000 $0 0% 52801-Computers, Supplies & Software $175 $1,740 $1,740 $1,827 $87 5% 53101-Telephone $47,146 $56,371 $44,400 $45,066 -$11,305 -20.1% 53102-Electricity $44,283 $31,543 $48,000 $48,619 $17,076 54.1% 53104-Water $12,512 $24,510 $10,000 $26,849 $2,339 9.5% Total Materials & Services:$545,445 $765,626 $713,881 $636,448 -$129,178 -16.9% Internal Services Charge 54101-Administrative Service Charge $672,276 $672,273 $672,273 $692,513 $20,240 3% 54102-Warehouse Purchases $7,619 $11,000 $11,000 $11,550 $550 5% 54106-Fleet Rental Allocation $111,900 $132,080 $132,080 $200,580 $68,500 51.9% 54107-Fleet Maintenance Allocation $21,853 $41,653 $41,653 $52,383 $10,730 25.8% 54108-Building & Ops Allocation $48,917 $48,031 $48,031 $52,832 $4,801 10% 54109-Engineering Service Charges $151,369 $240,550 $240,550 $142,654 -$97,896 -40.7% Total Internal Services Charge:$1,013,934 $1,145,587 $1,145,587 $1,152,512 $6,925 0.6% Transfers 59201-Transfers Out $317,269 $0 $0 $0 $0 0% Total Transfers:$317,269 $0 $0 $0 $0 0% Capital Projects & Equipment 61203-Computer Equipment & Software $119 $0 $0 $0 $0 0% 61401-Vehicles $0 $100,000 $100,000 $0 -$100,000 -100% 62201-Building & Facility Improv $86,440 $0 $284,500 $0 $0 0% 62221-Utility Improvements $404,451 $5,380,000 $738,809 $3,250,000 -$2,130,000 -39.6% Total Capital Projects & Equipment:$491,010 $5,480,000 $1,123,309 $3,250,000 -$2,230,000 -40.7% Debt Service 71101-Bond Principal $75,842 $75,843 $75,842 $80,790 $4,947 6.5% 71102-Bond Interest $9,604 $5,936 $5,936 $2,020 -$3,916 -66% 71103-Bond Administration Fee $0 $200 $200 $200 $0 0% 71107-POB Miscellaneous Principal $17,305 $26,084 $17,306 $23,310 -$2,774 -10.6% 71108-POB Miscellaneous Interest $10,162 $15,117 $10,122 $13,136 -$1,981 -13.1% Total Debt Service:$112,912 $123,180 $109,406 $119,456 -$3,724 -3% Total Expense Objects:$3,390,200 $8,305,857 $4,048,028 $5,998,920 -$2,306,937 -27.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Sewer Fund $3,390,200 $8,305,857 $4,048,028 $5,998,920 -$2,306,937 -27.8% Total Sewer Fund:$3,390,200 $8,305,857 $4,048,028 $5,998,920 -$2,306,937 -27.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 351 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 352 PARKING FACILITIES PROGRAM OVERVIEW CITY PARKING LOTS & METERS The Parking Fund includes revenue generated from metered City streets and parking lots, and the sale of merchant parking permits. These revenues are used to operate and maintain the City's ten public parking lots, which contain 836 spaces and 440 on-street parking meters, as well as maintenance for Metlox Plaza and the Civic Center Plaza. COUNTY PARKING LOTS The City operates and maintains two Los Angeles County-owned parking lots. The two County-owned lots are the El Porto parking lot with 231 spaces and the 27th Street parking lot with 68 spaces. The revenue generated through parking meters and the sale of overnight permits are governed by an agreement with the County of Los Angeles which dictates that the City provides the County with 55% of the gross annual revenue. STATE PARKING LOTS The City also operates and maintains 118 parking meters at the Upper and Lower Pier parking lots, which are owned by the State of California. Under an agreement with the State of California, revenue generated through parking fees and overnight parking permits from the Pier lots may only be used for the operation and maintenance of these parking lots and the comfort station located adjacent to the Pier. OBJECTIVES FY 2026 Continue to Implement recommendations from the assessment of the City’s parking operations. i.Support Community Development’s efforts to complete the Public Parking Management Plan (PPMP). ii.Define parking responsibilities between departments and positions. iii.Consolidate parking inventory counts. iv.Support Police Department and Finance efforts to analyze personnel allocations dedicated to Parking Enforcement. v.Support Finance efforts to consider ‘no-count’ bank coin deposits. Per City Council direction, initiate the transition from single-space meters to centralized pay stations and mobile payment platforms. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 353 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 354 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 0.05 -- Electrician 0.20 0.20 0.20 Maintenance Assistant -0.62 0.62 Maintenance Supervisor -0.62 0.62 Maintenance Worker I/II -1.24 1.24 Meter Repair Worker 2.00 2.00 2.00 Senior Management Analyst 0.30 -- 2.55 4.68 4.68 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 355 Capital Projects & Equipment (49.6%)Capital Projects & Equipment (49.6%)Capital Projects & Equipment (49.6%) Materials & Services (17.6%)Materials & Services (17.6%)Materials & Services (17.6%) Debt Service (15.1%)Debt Service (15.1%)Debt Service (15.1%) Internal Services Charge (12.6%)Internal Services Charge (12.6%)Internal Services Charge (12.6%) Salaries & Benefits (5.1%)Salaries & Benefits (5.1%)Salaries & Benefits (5.1%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $202,842 $313,380 $303,638 $361,604 $48,224 15.4% 51103-Part Time Employee Salaries $0 $0 $500 $0 $0 0% 51104-Overtime Regular Employees $24,875 $17,265 $27,065 $17,266 $1 0% 51201-Group Medical Insurance $45,541 $65,531 $67,368 $85,916 $20,385 31.1% 51202-Medicare $3,257 $4,543 $4,735 $5,244 $701 15.4% 51204-401A Plan City $754 $2,657 $2,587 $3,410 $753 28.3% 51211-PERS Regular Contributions $20,026 $30,538 $29,587 $34,487 $3,949 12.9% 51213-PERS Regular Net Pension Liab $0 $5,299 $3,521 $9,636 $4,337 81.8% Total Salaries & Benefits:$297,295 $439,213 $439,001 $517,563 $78,350 17.8% Materials & Services 52101-Contract Services $1,066,689 $1,162,297 $1,187,338 $980,588 -$181,709 -15.6% 52201-Departmental Supplies $74,153 $209,154 $161,976 $139,600 -$69,554 -33.3% 52203-Printing $10,169 $6,000 $12,000 $10,000 $4,000 66.7% 52205-Uniforms/Safety Equipment $2,441 $2,070 $2,070 $2,116 $46 2.2% 52301-Training, Conf & Meetings $0 $5,000 $2,000 $2,000 -$3,000 -60% 52404-Bank Service Charge $391,365 $370,000 $372,000 $370,000 $0 0% 52706-DMBBPA Allocation $235,770 $120,000 $120,000 $120,000 $0 0% 53101-Telephone $5,252 $5,790 $6,115 $6,207 $417 7.2% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 356 EXPENDITURES BY TYPE 53102-Electricity $83,971 $88,368 $91,700 $100,338 $11,970 13.5% 53103-Natural Gas $8,963 $10,720 $9,000 $9,135 -$1,585 -14.8% 53104-Water $30,070 $33,177 $33,260 $32,147 -$1,030 -3.1% Total Materials & Services:$1,908,844 $2,012,576 $1,997,459 $1,772,131 -$240,445 -11.9% Internal Services Charge 54101-Administrative Service Charge $615,528 $615,534 $615,534 $826,354 $210,820 34.2% 54102-Warehouse Purchases $6,703 $25,600 $26,000 $25,600 $0 0% 54104-Information Systems Allocation $28,560 $57,785 $57,785 $59,335 $1,550 2.7% 54106-Fleet Rental Allocation $5,196 $0 $4,344 $15,760 $15,760 N/A 54107-Fleet Maintenance Allocation $14,665 $19,963 $19,963 $71,872 $51,909 260% 54109-Engineering Service Charges $0 $0 $0 $274,060 $274,060 N/A Total Internal Services Charge:$670,652 $718,882 $723,626 $1,272,981 $554,099 77.1% Transfers 59201-Transfers Out $163,186 $0 $0 $0 $0 0% Total Transfers:$163,186 $0 $0 $0 $0 0% Capital Projects & Equipment 62201-Building & Facility Improv $1,482,722 $1,675,000 $1,997,637 $4,995,000 $3,320,000 198.2% 62211-Street & Sidewalks Improv $29,903 $0 $264,738 $0 $0 0% Total Capital Projects & Equipment:$1,512,625 $1,675,000 $2,262,375 $4,995,000 $3,320,000 198.2% Debt Service 71101-Bond Principal $440,000 $440,000 $440,000 $460,000 $20,000 4.5% 71102-Bond Interest $221,422 $200,000 $200,000 $177,500 -$22,500 -11.2% 71103-Bond Administration Fee $0 $1,250 $1,250 $1,250 $0 0% 72101-Land Leases $562,413 $605,000 $605,000 $853,437 $248,437 41.1% 71107-POB Miscellaneous Principal $8,895 $15,916 $8,896 $16,206 $290 1.8% 71108-POB Miscellaneous Interest $5,223 $9,224 $5,206 $9,135 -$89 -1% Total Debt Service:$1,237,953 $1,271,390 $1,260,352 $1,517,528 $246,138 19.4% Total Expense Objects:$5,790,555 $6,117,061 $6,682,813 $10,075,203 $3,958,142 64.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Parking Fund $3,070,335 $4,290,885 $4,538,779 $8,185,111 $3,894,226 90.8% County Parking Lots Fund $747,131 $890,901 $872,830 $1,188,011 $297,110 33.3% State Pier & Parking Lot Fund $1,973,088 $935,275 $1,271,204 $702,081 -$233,194 -24.9% Total:$5,790,555 $6,117,061 $6,682,813 $10,075,203 $3,958,142 64.7% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 357 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 358 FLEET MAINTENANCE PROGRAM OVERVIEW The Fleet Management Section is responsible for the maintenance, fueling and replacement of City vehicles and large equipment items. It also operates and maintains a gasoline and compressed natural gas (CNG) fueling station. A fleet supervisor oversees three equipment mechanics and is supported by the General Services Division in tracking the vehicle replacement budget and the vehicle parts inventory. Specialized alternative fuel training is provided to the Fleet staff to continue promoting a cleaner environment. In order to maintain compliance with the South Coast Air Quality Management District (SCAQMD) 1190 Series Rules, the City currently has thirty (30) alternative fuel vehicles and equipment as of spring 2024. The AB2766 Subvention Fund is available for use to offset the differential cost of alternative fuel vehicles (AFV). OBJECTIVES FY 2026 Procure all vehicles identified for replacement in the FY 2026 Budget. Upgrade generators at the Block 35 and Well 15 water sites. Develop Formal Vehicle Replacement Review Process for the Fiscal Year 2027 Budget. AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Administrative Assistant 0.25 -- Equipment Maintenance Supervisor 1.00 1.00 1.00 Equipment Mechanic I/II 3.00 3.00 3.00 Senior Management Analyst 0.175 -- 4.425 4.00 4.00 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 359 Capital Projects & Equipment (58.2%)Capital Projects & Equipment (58.2%)Capital Projects & Equipment (58.2%) Materials & Services (27.4%)Materials & Services (27.4%)Materials & Services (27.4%) Salaries & Benefits (10.7%)Salaries & Benefits (10.7%)Salaries & Benefits (10.7%) Internal Services Charge (3.2%)Internal Services Charge (3.2%)Internal Services Charge (3.2%) Debt Service (0.5%)Debt Service (0.5%)Debt Service (0.5%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $274,010 $302,520 $219,950 $330,026 $27,506 9.1% 51103-Part Time Employee Salaries $0 $0 $500 $0 $0 0% 51104-Overtime Regular Employees $8,446 $5,000 $5,000 $5,000 $0 0% 51201-Group Medical Insurance $47,064 $41,841 $43,430 $74,262 $32,421 77.5% 51202-Medicare $4,054 $4,387 $3,222 $4,785 $398 9.1% 51204-401A Plan City $1,537 $2,528 $0 $5,235 $2,707 107.1% 51211-PERS Regular Contributions $25,328 $28,960 $21,084 $31,443 $2,483 8.6% 51213-PERS Regular Net Pension Liab $0 $5,023 $4,452 $9,135 $4,112 81.9% 51232-Workers Compensation $40,680 $0 $0 $0 $0 0% Total Salaries & Benefits:$401,120 $390,259 $297,638 $459,886 $69,627 17.8% Materials & Services 52101-Contract Services $299,213 $336,293 $288,279 $286,175 -$50,118 -14.9% 52103-Software Purchases and Subscriptions $22,680 $37,080 $31,895 $48,500 $11,420 30.8% 52109-Automotive Repair Services $3,163 $0 $0 $0 $0 0% 52201-Departmental Supplies $100,838 $124,630 $120,000 $120,000 -$4,630 -3.7% 52203-Printing $0 $150 $150 $150 $0 0% 52204-Postage $0 $0 $0 $500 $500 N/A 52205-Uniforms/Safety Equipment $3,611 $4,605 $4,605 $4,674 $69 1.5% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 360 EXPENDITURES BY TYPE 52207-Tools & Minor Equipment $3,000 $3,700 $3,700 $3,700 $0 0% 52301-Training, Conf & Meetings $35 $10,000 $5,000 $10,000 $0 0% 52307-Memberships & Dues $516 $400 $0 $400 $0 0% 52402-Automotive Fuel $541,265 $715,674 $703,674 $703,674 -$12,000 -1.7% 52801-Computers, Supplies & Software $0 $600 $600 $600 $0 0% Total Materials & Services:$974,322 $1,233,132 $1,157,903 $1,178,373 -$54,759 -4.4% Internal Services Charge 54102-Warehouse Purchases $3,307 $1,500 $3,500 $4,000 $2,500 166.7% 54103-Garage Purchases $19,068 $51,000 $15,000 $25,000 -$26,000 -51% 54104-Information Systems Allocation $49,644 $48,931 $48,931 $58,753 $9,822 20.1% 54105-Insurance Allocation $15,000 $18,900 $18,900 $26,460 $7,560 40% 54106-Fleet Rental Allocation $0 $52,880 $52,880 $23,230 -$29,650 -56.1% Total Internal Services Charge:$87,019 $173,211 $139,211 $137,443 -$35,768 -20.6% Capital Projects & Equipment 61401-Vehicles $2,865,984 $3,110,480 $3,253,761 $2,507,793 -$602,687 -19.4% Total Capital Projects & Equipment:$2,865,984 $3,110,480 $3,253,761 $2,507,793 -$602,687 -19.4% Debt Service 71107-POB Miscellaneous Principal $19,259 $14,792 $19,260 $14,874 $82 0.6% 71108-POB Miscellaneous Interest $11,309 $8,573 $11,264 $8,382 -$191 -2.2% Total Debt Service:$30,569 $23,365 $30,524 $23,256 -$109 -0.5% Total Expense Objects:$4,359,013 $4,930,447 $4,879,037 $4,306,751 -$623,696 -12.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Fleet Management Fund $4,359,013 $4,930,447 $4,879,037 $4,306,751 -$623,696 -12.6% Total Fleet Management Fund:$4,359,013 $4,930,447 $4,879,037 $4,306,751 -$623,696 -12.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 361 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 362 ORGANIZATIONAL CHART CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 364 AUTHORIZED FULL-TIME POSITIONS FY 2024 Adopted FY 2025 Adopted FY 2026 Proposed Applications Analyst 2.00 2.00 2.00 Geographic Information Systems Administrator 1.00 1.00 1.00 Information Technology Director 1.00 1.00 1.00 Office Assistant -1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 Senior Technology Specialist 2.00 2.00 2.00 Senior Technology Systems Engineer --1.00 Technology Specialist 1.00 1.00 2.00 Technology Systems Engineer 2.00 2.00 1.00 10.00 11.00 12.00 1,077 hours are budgeted in FY 2026 for part-time staff. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 365 MISSION Information Technology (IT) provides advanced technology solutions and manages the organization’s critical systems and communication channels, empowering the Departments to deliver on the City's mission. The IT Department aims to deliver timely support, reliable high- performance technology systems, and secure access to and storage of City data when addressing the various needs of the City Departments. DEPARTMENT/PROGRAM OVERVIEW The Information Technology Department remains focused on implementing and managing cost-effective technology solutions in a secure, resilient, and reliable environment. IT strives to constantly improve the citizen and business experience by keeping abreast of technological advancements in digital civic engagement and smart cities initiatives. The Department aims to be agile, innovative, and forward-thinking by exploring and implementing technology enhancements to the City's complex technology ecosystem (servers, storage, networks, geospatial analytics and mapping services, end-user computing, website/online portal services, print/scan devices, phone system, etc.) in support of the City growing operational needs and business demands. The IT Department includes highly qualified technical staff who bring an array of technology and business skills, including systems and network administration, cybersecurity, end-user device support, systems analysis, process analysis, project management, vendor management, reporting, contract management, procurement, audio/visual, and broadcasting. When it makes business sense, the Department strategically sources professional services from proven vendors to further extend technical skills and expertise. The IT Department service framework includes the following: End-User Support Help Desk Desktop/Laptop/Tablet/Mobile Telephone System Website/Intranet Broadcasting & Audio-Visual Cybersecurity Remote Access Patch Management End-User Device Refreshment Infrastructure Support Cloud Computing Network and Data Center Cybersecurity Business Continuity & Disaster Recovery Network/System Monitoring Capacity and Performance Management Patch and Release Management Network & Server Refreshment Application Support Issue Resolution Change Management Vendor Management Application Security Reporting and Data Analytics Workflow Management Patch and Release Management Integration Requirements Analysis Project Management Geographic Information Systems (GIS) Support Data Updates Data Analysis Mapping Website/Dashboard Development System Management Integration to Core Systems (i.e., ERP, LMS, EDMS, Website, etc.) Training Large Format Printing Support Management and Administration Services IT Planning and Budget Policy and Procedures Service Management Project Management Research, Reporting, and Analysis Training Resource and Procurement Management Contract Management Public Records Act (PRA) Support Accounts Payable CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 366 MAJOR SERVICE DELIVERY CHANGES As the City continues implementing technology to enhance services and customer support and streamline business processes, Information Technology (IT) must evaluate its support and service model to ensure an adequate response to the changes. This ongoing effort involves improving processes, procedures, methods, and tools to assure quality support while considering the City's needs. With the available budget, operational efficiencies are considered and implemented for enhanced automation and streamlined work practices wherever possible. The proposed budget includes the upgrade of two Technology Specialists to Senior Technology Specialists, which were initially approved in Fiscal Year 2023. Since both Senior Technology Specialist positions remained underfilled at the entry level, they were inadvertently misallocated in the following years' budgets. FY 2026 now correctly reflects the two previously approved Senior Technology Specialists upgrades. Another important service delivery change in the Information Technology budget includes moving the Technology Specialist from the Police Department budget to Information Technology’s budget for centralized IT management. The position realignment provides a unified and agile IT structure for more cohesive service delivery, improves overall infrastructure management, and enhances organizational access to technology resources, while providing career development and laddering opportunities for the incumbent. The Fiscal Year 2026 also includes upgrading the Technology Systems Engineer to a senior-level position, reflecting the increasing complexity and critical importance of the City's technology infrastructure. This role will strengthen system effectiveness, security, and reliability by providing strategic oversight, advanced troubleshooting, and leadership across key areas like cybersecurity, disaster recovery, and enterprise integrations. The Senior Technology Systems Engineer upgrade supports operational needs' growth, workforce development, and retention by presenting a career growth path, enhancing job satisfaction, and securing valuable talent. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 367 RECENT ACCOMPLISHMENT HIGHLIGHTS Continued to strengthen the network and overall City cybersecurity stack by implementing new solutions and additional features as recommended by the federal and state cybersecurity agencies. Continued to provide ongoing end-user cybersecurity awareness training and phishing tests to further prepare the City against the ever- evolving threats of cyber threats. Upgraded the City Internet primary circuit to a higher speed for faster services, including access to cloud City applications in response to the City's needs. Continued to improve the City's network and system resiliency and redundancy by addressing single points of failure. Continued to improve the City's disaster recovery processes, procedures, and systems in support of technology's critical role in the City's operations. Continued to fine-tune the application support roles and responsibilities, as well as associated processes (issue management, change management, testing, etc.) to ensure the City's critical enterprise applications perform properly and remain current with changing technology. Continued to enhance the City’s Enterprise Resource Planning (ERP) and Enterprise Permitting and Licensing (EPL) to ensure greater functionality and better system performance. Together with the Finance Department, IT upgraded the City Cashiering system for enhanced integrations, features, and streamlined services. Continued to support the City's Enterprise Document Management system and online public access to City records, facilitating greater government accessibility and transparency. Additionally, this furthers the City's efforts for more streamlined work processes and digitized records in alignment with the City's sustainability and Green City initiatives. Continued to boost the City's fiber network for greater resiliency and bandwidth to support the expanded use of technology when providing more efficient and streamlined business processes. A recent example is the replacement of the City wireless access points to improve wireless bandwidth and access. Continued to enhance and add more features and functionalities to the City's helpdesk, anti-virus/malware protection, and patch management systems to improve IT services, network security, resiliency, and reliability. Continued to build the City's Geographic Information System (GIS) mapping and additional integrations with other core City systems such as Enterprise Permitting and Licensing (EPL), Enterprise Resource Planning (ERP), and Enterprise Document Management System to enhance information access, sharing, and decision-making. Continued to support remote access for the City staff by leveraging remote access tools to establish a secure Virtual Private Network and provide comprehensive communication channels. Furthermore, IT is constantly monitoring technological developments, industry standards, and software updates to address security concerns and technological differences. Implemented Phase 1 and 2 of Microsoft 365 Office Suite (Outlook, Excel, Word, PowerPoint) and collaboration tools (MS Teams, OneNote) to enhance the City communication channels and team collaboration efforts. Training was provided for the City users to ensure a smooth transition to the new software. Continued to work on migrating from on-premise user file storage to cloud Microsoft 365 and implementing other Microsoft 365 tools. Upgraded GIS online mapping applications on the City website, www.manhattanbeach.gov, and the City Intranet, including redesigning the backend support infrastructure for improved system performance and security. Continued support of field technology (iPads, tablets) for City users, i.e. code enforcement and inspectors. Upgraded the audio-video and broadcast technologies in the City Council Chambers for better video and audio quality of the City meetings. Continued broadcast/audiovisual support of City Council, Commissions (Planning, Parking and Public Improvements, Parks and Recreation, Library, and Cultural Arts), City events, and community meetings. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 368 OBJECTIVES FY 2026 Continue the improvement in the following areas: End-User Support (IT Help Desk) Cybersecurity, tools, and applications to further streamline processes addressing the rapidly growing use of mobile or remote access computing City Enterprise Applications Enhancements Add functionalities or services to existing enterprise systems Software/Application Management Implement patches, updates, and new releases to obtain the most value from the City's investment(s) Cybersecurity Follow closely the best practices in cybersecurity as provided by federal, state, and local agencies' guidelines Strengthen further the cybersecurity strategies and implement more security layers to protect the City's data Replace Enterprise Content Management (ECM) to better address the current needs of the organization; the new software will add more features and/or improved compatibility and integrations with existing City applications and services that further the City's continuous efforts for transparency and e-Government initiatives Migrate select enterprise systems to the cloud to improve scalability, enhance accessibility, simplify maintenance, and enhance resilience. The following applications are transitioning to the Software as a Service delivery stack: Enterprise Resource Planning (ERP) Enterprise Planning and Licensing (EPL) Cashiering Continue to implement modernized technology infrastructure (servers, storage, network) Implement Phase 3 of Microsoft 365 / SharePoint and other collaboration tools Continue to work with departments to proactively plan and implement technologies as identified in the budget process Continue to address single points of failure within the City's IT infrastructure to improve stability, resiliency, and performance Upgrade the City's audio-visual and broadcasting equipment in the Council Chambers, Police/Fire Conference Room, and Joslyn Center Auditorium on an as-needed basis to address unsupported equipment and enhance the overall broadcast quality Research and implement Artificial Intelligence (AI) technology to streamline and improve efficiency, accessibility, and responsiveness in delivering public services through optimized resource allocation, reduced administrative burdens, and a more personalized experience for the public Continue to enhance digital presence and promote business process automation and technology innovation to City Departments Assess organizational IT needs and develop a five-year Information Technology Strategic Plan CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 369 PERFORMANCE MEASURES USER SATISFACTION RATING AS EXCELLENT OR GOOD PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget N/A*N/A*N/A*75% PERCENTAGE OF FIRST CALL TICKET RESOLUTION PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 63%48%74%80% PERCENTAGE NETWORK INFRASTRUCTURE UPTIME PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 99.9%99.9%99.9%99.9% PERCENTAGE CITY ENTERPRISE APPLICATIONS UPTIME PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 99.4%99.9%99.9%99.9% USER PHISH-PRONE PERCENTAGE PRIOR YEAR TARGET FY 2023 FY 2024 FY 2025 FY 2026 Actual Actual Estimate Budget 1.9%0.3%0.3%<2% As a new performance measure, the Information Technology Department will begin to assess the user (customer) satisfaction rate and will seek to maintain a baseline of 75% satisfaction with services. The general benchmark for user satisfaction in IT services ranges between 75% and 85%. *Due to significant IT Helpdesk staffing changes, satisfaction analysis will start in FY 2026. The Information Technology Helpdesk aims to resolve service requests on the first attempt. The First Call Resolution is the percentage of support tickets resolved on the first contact or first touch. The industry standards for a strong performance level is between 70% and 79%, and a world-class level is 80% or higher. Maintain network infrastructure uptime of 99.9% outside required maintenance windows in support of City staff providing essential services to residents. Maintain City enterprise applications uptime of 99.9% outside required maintenance windows. Some of the measured enterprise applications are Enterprise Resource Planning, Enterprise Permitting & Licensing, and Enterprise Document Management systems. The Information Technology Department regularly conducts simulated phishing attacks on network users to test the City’s phish-prone vulnerability. The targeted average percentage is below the industry phish-prone 4.3% benchmark. Users who fail the phishing test must take additional cybersecurity awareness training. *These are new performance measures that began to be tracked in FY 2023. Data may not be available for prior years. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 370 BY THE NUMBERS 2024 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 371 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 372 DEPARTMENT EXPENDITURES BY PROGRAM Information Technology (100%)Information Technology (100%)Information Technology (100%) Expenditures Information Technology Information Technology $4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Total Information Technology:$4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Total Expenditures:$4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 373 Budgeted Expenditures by Program SCHEDULE OF EXPENDITURE DETAIL Materials & Services (61.9%)Materials & Services (61.9%)Materials & Services (61.9%) Salaries & Benefits (31%)Salaries & Benefits (31%)Salaries & Benefits (31%) Capital Projects & Equipment (4.8%)Capital Projects & Equipment (4.8%)Capital Projects & Equipment (4.8%) Debt Service (1.5%)Debt Service (1.5%)Debt Service (1.5%) Internal Services Charge (0.9%)Internal Services Charge (0.9%)Internal Services Charge (0.9%) Expense Objects Salaries & Benefits 51101-Salaries & Allowances $1,201,381 $1,279,544 $1,286,922 $1,487,842 $208,298 16.3% 51103-Part Time Employee Salaries $92,806 $49,299 $49,500 $57,385 $8,086 16.4% 51104-Overtime Regular Employees $10,059 $48,545 $20,875 $48,545 $0 0% 51201-Group Medical Insurance $127,827 $155,346 $146,897 $185,877 $30,531 19.7% 51202-Medicare $18,631 $19,268 $19,547 $22,130 $2,862 14.9% 51203-Medical Retirement Contrs $0 $0 $0 $4,318 $4,318 N/A 51204-401A Plan City $40,046 $41,504 $45,549 $44,572 $3,068 7.4% 51211-PERS Regular Contributions $114,827 $122,689 $119,255 $138,637 $15,948 13% 51213-PERS Regular Net Pension Liab $0 $21,270 $20,181 $38,682 $17,412 81.9% Total Salaries & Benefits:$1,605,577 $1,737,465 $1,708,726 $2,027,988 $290,523 16.7% Materials & Services 52101-Contract Services $20,728 $210,097 $171,768 $130,477 -$79,620 -37.9% 52103-Software Purchases and Subscriptions $878,823 $1,396,826 $1,321,955 $1,779,839 $383,013 27.4% 52201-Departmental Supplies $1,570 $10,810 $10,300 $10,810 $0 0% 52202-Office Supplies $1,017 $1,000 $1,224 $1,500 $500 50% 52203-Printing $183 $700 $350 $700 $0 0% 52204-Postage $0 $0 $0 $500 $500 N/A 52301-Training, Conf & Meetings $15,054 $56,907 $57,051 $100,636 $43,729 76.8% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 374 52304-Employee Awards & Events $250 $1,500 $1,000 $1,500 $0 0% 52307-Memberships & Dues $2,695 $1,700 $1,695 $1,785 $85 5% 52308-Reference Books & Periodicals $0 $500 $75 $0 -$500 -100% 52801-Computers, Supplies & Software $1,243,288 $1,522,540 $1,470,296 $1,983,894 $461,354 30.3% 52802-Computer Maintenance & Repairs $18,019 $24,665 $23,650 $26,453 $1,788 7.2% 53101-Telephone $604 $911 $500 $508 -$403 -44.2% 52803-Leased Property & Equipment $0 $0 $0 $12,390 $12,390 N/A Total Materials & Services:$2,182,231 $3,228,156 $3,059,864 $4,050,992 $822,836 25.5% Internal Services Charge 54102-Warehouse Purchases $173 $800 $250 $800 $0 0% 54108-Building & Ops Allocation $53,893 $46,829 $46,829 $57,925 $11,096 23.7% Total Internal Services Charge:$54,067 $47,629 $47,079 $58,725 $11,096 23.3% Capital Projects & Equipment 61203-Computer Equipment & Software $214,612 $304,626 $269,626 $315,607 $10,981 3.6% 61204-ERP Implementation $5,390 $20,119 $20,100 $0 -$20,119 -100% Total Capital Projects & Equipment:$220,001 $324,745 $289,726 $315,607 -$9,138 -2.8% Debt Service 71107-POB Miscellaneous Principal $67,325 $57,342 $67,325 $61,272 $3,930 6.9% 71108-POB Miscellaneous Interest $39,534 $33,232 $39,372 $34,528 $1,296 3.9% Total Debt Service:$106,859 $90,574 $106,697 $95,800 $5,226 5.8% Total Expense Objects:$4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change SOURCE OF FUNDS Information Technology Fund $4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Total Information Technology Fund:$4,168,735 $5,428,569 $5,212,092 $6,549,112 $1,120,543 20.6% Name FY2024 Actual FY2025 Adopted FY2025 Estimate FY2026 Adopted Change from FY2025 Adopted % Change CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 375 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 376 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 378 FORECAST OVERVIEW FIVE YEAR FORECAST The City of Manhattan Beach is committed to strong stewardship of taxpayer dollars, including developing a responsive budget that delivers high-quality services to our community. To assist with this effort, staff prepares projections for revenues and expenditures over the next five-year period as the budget is developed each year. Estimates for revenue and expenditure growth are derived using trend analysis, economic data and known future changes. Identifying additional sources of funding for our core services and critical infrastructure improvements has been a top priority to address pressure on the General Fund. In FY 2025, proactive steps were taken to increase Citywide revenues and reduce general fund subsidies. These steps included: 1.Measure MMB Sales Tax: On November 4, 2024, Manhattan Beach voters approved the new sales tax Measure MMB, which is a one- half cent (0.5%) sales tax measure to support general City services and capital improvement projects. This sales tax measure is projected to bring in $5,943,000 in new revenue annually. With this new revenue stream generating higher General Fund surpluses, up to$5.5 million may be transferred to the CIP Fund to support debt service and capital improvement projects. 2.User Fee Study: On April 15, 2025, the User Fee Study Update and Comprehensive Fee Schedule was adopted, which will substantially increase cost recovery and achieve $1.6 million in increased revenues ($1.0 million of which is in the General Fund and $600,000 of which is in the Information Technology Fund). 3.Parking Related Fee Revenue Enhancements: On April 15, 2025, adjustments to parking meter rates, commercial parking permits and parking citation penalties were approved to address the City’s critical parking infrastructure needs. Together, the parking related fee changes will generate approximately $2.4 million in increased revenue across the Parking Fund ($1,250,691 in parking meter and parking permit revenues), County Lots Fund ($451,705 in parking meter revenues), State Pier Fund ($336,687 in parking meter revenues) and General Fund ($351,865 in Parking Citation revenues). 4.Financial Policy Changes: On March 6, 2025, the Finance Subcommittee reviewed the City's Financial Policies and on June 3, 2025, City Council adopted the proposed changes to Section 6 - Capital Improvement Policies within the City’s Financial Policies. Specifically, the updated Policy removed the $4.00 dedication of every parking citation revenue to the CIP Fund and also removed the $0.50 dedication of the hourly parking meter rate revenue to the CIP Fund. These changes in the Policy thereby increased the General Fund and Parking Fund revenues and funding availability to use on critical parking-related infrastructure projects. Together, these Policy changes allow an estimated $95,000 in parking citation revenue to remain in the General Fund and an estimated $665,000 in parking meter revenue to remain in the Parking Fund, which are necessary in addressing critical parking infrastructure needs and related parking activities. The results of these proactive measures are included in the Forecast, which projects fund balances, including policy reserves and unreserved balances, over the five-year horizon. After bond proceeds reimburse the General Fund for the acquisition of 400 Manhattan Beach Boulevard in August 2025, the Forecast shows that the City has been successful in maintaining a fiscally prudent policy of 20% of General Fund expenditures in reserve for emergencies and urgent needs and, additionally, an Economic Uncertainty reserve of $4 million through FY 2030. The Forecast also highlights General Fund transfers to other funds, such as to the CIP Fund for capital projects and related debt service, the Pension Trust Fund for future pension costs, and the Street Lighting and Landscape Fund for unfunded operations. Using the FY 2026 Budget as a base, growth factors are applied to fiscal years 2027 through 2030 in order to estimate revenues, expenditures, and fund balances over the upcoming five-year period. Like all materials and contract services, labor costs in California continue to rise. As a service organization, the City delivers services through our dedicated employees. Multi-year labor agreements are currently underway with four of the City’s bargaining units, bringing some level of predictability to one of the City’s biggest cost centers. After salaries, the second largest compensation driver for the City is retirement system costs. The FY 2026 Proposed Budget includes $6.2 million for current service costs associated with providing employees defined benefit pension plans through the California Public Employees’ Retirement System (CalPERS). Additionally, about $2.0 million is budgeted for payments toward the City’s Unfunded Accrued Liability (UAL). The City also pays annual debt service of $5.5 million on Pension Obligation Bonds (POBs) issued in 2021. The aforementioned revenue measures and decisions made for cost-controls, including pension cost reductions through the issuance of the POBs, have supported our goal of long-term financial sustainability. FORECAST TRENDS AND GROWTH RATES General Fund core revenues are projected to increase from $112.2 million to $130.0 million over the forecast period. Property Tax, the City’s largest revenue source, is the biggest driver with anticipated increases ranging 4-4.5%, from $47.0 million to $55.8 million over the five-year period. Substantial growth in Sales Tax is projected at 3-3.5% per year based on the inclusion of the new sales tax Measure MMB, and inflationary increases. Transient Occupancy Tax is projected to increase 3-5% per year with new accommodations in early development phases. Travel and tourism is expected to remain strong with large-scale regional events coming to the Los Angeles region in the upcoming years. Similarly, Business License Tax, which is based on gross receipts for most categories and includes an annual CPI adjustment, is projected to increase substantially in FY 2026 due to increased compliance efforts through our partnership with HDL Companies and is expected to grow 4% each year thereafter. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 379 Service Charges are mostly based on cost recovery fees for City services, with the exception of Parks and Recreation classes, which are market-driven. Citywide user fees are projected to increase substantially due to the recent User Fee Study and fee schedule that was adopted, in which greatly increases the City’s cost recovery on user fees. Building Permits and Plan Check Fees are expected to increase 4-5% per year. Parks and Recreation programs and classes are expected to generate increases of around 3-4% per year. Rents and Leases, Fines, and Interest Earnings are projected to have minor increases as appropriate. Overall, General Fund revenues are stable with moderate growth expected over the next five years. General Fund expenditures are projected to increase from $105.6 million to $120.0 million, resulting in budget surpluses every year. Employee Salaries and Benefit increases are projected around 3.5-4.8% per year based on placeholder adjustments for labor group MOUs and historical trends in medical insurance, pension costs, etc. Given recent inflationary growth in the cost of all goods and services, Contract & Professional Services include adjustments for known one-time projects as well as CPI increases ranging 3-3.5% annually. Similarly, Materials & Services are increasing 3.5% each year. Utilities costs, which can be unpredictable, have 3.5% increases included over the five-year period. Lastly, Internal Service Charges are increasing 1-3% based on projected increases in each internal service fund (i.e. Insurance Reserve, Information Technology, Fleet, and Building Maintenance & Operations). CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 380 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 81 O_100Summary FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FIVE YEAR FORECAST GENERAL FUND GENERAL FUND Actual Actual Actual Projection Budget Forecast Forecast Forecast Forecast BEGINNING FUND BALANCE 30,693,696 38,150,421 35,764,414 36,559,969 18,977,311 30,185,504 28,466,293 27,248,784 27,601,677 Revenues 86,782,277 91,417,941 98,264,431 101,116,966 112,165,238 116,473,675 121,224,757 126,032,625 130,073,677 2,952,594 (276,355) 891,419 311,693 13,254,390 13,094 13,618 14,094 14,587 Core Revenues Non-core Revenues (One-time & Grants) Total Revenues & Other Inflows (A)$89,734,871 $91,141,586 $99,155,850 101,428,659 125,419,628 116,486,769 121,238,375 126,046,719 130,088,265 - - - - - - - - - Expenditures 78,307,655 84,234,346 93,920,096 101,027,160 105,505,829 109,368,821 113,399,867 116,424,710 120,007,309Core Expenditures Non-core Expenditures (One-time & Capital) 152,076 180,138 111,641 753,249 74,400 - - - - (B) 78,459,731 84,414,484 94,031,737 101,780,409 105,580,229 109,368,821 113,399,867 116,424,710 120,007,309Total Expenditures & Other Outflows Core Structural Surplus/(Deficit) 8,474,622 7,183,595 4,344,335 89,806 6,659,409 7,104,855 7,824,891 9,607,915 10,066,368 Total Surplus/(Deficit) Before Transfers 11,275,140 6,727,103 5,124,113 (351,750) 19,839,399 7,117,948 7,838,508 9,622,009 10,080,956 Fund Equity Transfers Total (C) (3,818,416) (9,113,109) (4,328,558) (17,230,908) (8,631,206) (8,837,160) (9,056,018) (9,269,117) (9,496,836) (99,760) (139,577) (239,718) (268,587) (284,462) (305,744) (326,966) (348,094) (371,938) (492,596) (1,596,585) (994,920) (1,194,471) - - - - - (175,000) (5,691,000) (1,000,000) (1,000,000) - - - - - (13,221,000) - - - - - (5,000,000) (5,000,000) (5,500,000) (5,500,000) (5,500,000) (2,183,688) (1,038,479) (2,376,974) - (500,000) (500,000) - - - - - - - - - - 532,628 - 100,700 389,871 275,434 244,857 400,149 446,412 494,980 545,219 597,791 - - 500,000 - - - - - - (1,400,000) - - - - - - - - Street Lighting & Landscape Fund CIP Fund (Pension Liability Policy)1 CIP Fund (Projects) CIP Fund (400 MBB) CIP Fund (Per Financial Policies) Storm Drain Fund Parking Fund County Parking Lots Fund Information Technology Fund Fire Station 2 Construction Fund Section 115 Trust Fund1 (492,380) (1,791,707) (3,246,893) (3,477,827) (3,724,031) (3,966,242) (4,222,689) Increase/(Decrease) in Fund Balance (=A-B+C) 7,456,724 - (1,138,040) (2,386,007) 795,555 (17,582,658) 11,208,193 (1,719,211) (1,217,509) 352,893 584,120 ENDING FUND BALANCE $38,150,421 $35,764,414 $36,559,969 $18,977,311 $30,185,504 $28,466,293 $27,248,784 $27,601,677 $28,185,797 15,539,658$ 17,055,030$ 18,565,193$ 18,977,311$ 21,101,166$ 21,873,764$ 22,679,973$ 23,284,942$ 24,001,462$ 4,000,000$ 4,000,000$ 4,000,000$ -$ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 Financial Policy Designation2 Reserve for Economic Uncertainty Unreserved Fund Balance3 $ 18,610,763 $ 14,709,384 $ 13,994,776 -$ 5,084,338 $ 2,592,529 $ 568,811 $ 184,334 316,735 $ Not Meeting Financial Policy by $1,228,121 - - - - - 6,618,399 1 100% of Pension Policy Transfer to Section 115 Pension Trust Fund (Pending Council Direction). 2 Financial Policy Designation is 20% of Operational Expenditures at time of budget adoption. 3 Unreserved Fund Balance includes Reserve for Encumbrances. FIVE YEAR FORECAST ALL FUNDS FY 2026 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES $R$8 R151 R152 R153 R154 2 07/01/2025 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance General Fund Unreserved - $125,419,628 ($99,870,477) (74,400) ($5,635,352) ($105,580,229) $19,839,399 ($2,123,855) $9,084,338 $5,084,338 Transfer from County Lots Parking Fund 400,149 Transfer to Street Lighting Fund (284,462) Transfer to Storm Drain Fund (500,000) Transfer to Capital Improvements Fund (5,000,000) Transfer to Section 115 Trust Fund (3,246,893) Financial Policy Designation 18,977,311 18,977,311 2,123,855 21,101,166 21,101,166 Reserve for Economic Uncertainty - - - - 4,000,000 Total General Fund Balance $18,977,311 $125,419,628 ($99,870,477)($74,400)($5,635,352)($105,580,229)$38,816,710 ($8,631,206)$30,185,504 $25,101,166 $5,084,338 Special Revenue Funds Street Lighting & Landscape $21,842 $391,003 ($600,465) ($75,000)- ($675,465) ($262,620) $284,462 $21,842 $21,842 Gas Tax 469,333 2,098,759 (117,690) (2,145,000)- (2,262,690) 305,402 $305,402 305,402 Asset Forfeiture & Safety Grants 161,995 74,769 (168,000)- - (168,000) 68,764 68,764 68,764 Police Safety Grants 510,155 209,284 (220,000)- - (220,000) 499,439 499,439 499,439 Grants - - - - - - - - - Prop A 1,396,338 918,788 (920,666) (500,000) (10,587) (1,431,253) 883,873 883,873 883,873 Prop C 1,329,314 777,139 (35,664) (650,000)- (685,664) 1,420,789 1,420,789 1,420,789 AB 2766 60,135 53,373 (673)- - (673) 112,835 112,835 112,835 Measure R (101,067) 610,433 (19,753) (360,000)- (379,753) 129,613 129,613 129,613 Measure M 1,330,073 654,628 (79,832) (1,455,000)- (1,534,832) 449,869 449,869 449,869 Measure W 1,439,412 4,519,201 (2,744) (4,105,000)- (4,107,744) 1,850,869 1,850,869 1,850,869 Total Special Revenue Funds Balance $6,617,531 $10,307,377 ($2,165,487)($9,290,000)($11,466,074)$5,458,834 $284,462 $5,743,296 -$5,743,296 Capital Project Funds Capital Improvements $4,596,417 $1,105,804 ($477,999) ($6,267,000) ($1,792,666) ($8,537,665) ($2,835,444) $5,000,000 $2,164,556 $1,500,000 $664,556 Bond Construction 213,166 - - - - - 213,166 213,166 213,166 Underground Utility District Construction 1,191,351 57,096 - - - - 1,248,447 1,248,447 1,248,447 Total Capital Project Funds Balance $6,000,934 $1,162,900 ($477,999)($6,267,000)($1,792,666)($8,537,665)($1,373,831)$5,000,000 $3,626,169 $1,500,000 $2,126,169 Enterprise Funds Water*$2,832,703 $18,658,082 ($16,233,345) ($3,090,000) ($263,126) ($19,586,471) $1,904,314 $1,904,314 1,904,314 - Storm Drain* 81,085 2,256,328 (1,512,629) (1,133,337) (11,975) (2,657,941) (320,528) 500,000 179,472 179,472 - Sewer*1,945,756 4,706,815 (2,629,464) (3,250,000) (119,456) (5,998,920) 653,651 653,651 653,651 - Parking*2,482,437 6,283,427 (2,535,047) (4,995,000) (655,064) (8,185,111) 580,753 450,000 1,030,753 1,030,753 - County Parking Lots - 1,588,160 (329,366)- (858,645) (1,188,011) 400,149 (400,149) - - - State Pier & Parking 249,384 1,161,785 (698,262)- (3,819) (702,081) 709,088 (450,000) 259,088 234,027 25,061 Enterprise Fund Reserves: Total Enterprise Funds Balance $7,953,387 $34,654,597 ($23,938,113)($12,468,337)($1,912,085)($38,318,535)$4,289,449 $99,851 $4,389,300 $4,364,238 $25,061 FY 2026 07/01/2026 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 82 FIVE YEAR FORECAST ALL FUNDS FY 2026 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES $R$8 R151 R152 R153 R154 2 07/01/2025 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance FY 2026 07/01/2026 Internal Service Funds Insurance Reserve $6,142,981 $10,116,300 ($11,867,962)- ($29,157) ($11,897,119) $4,362,162 $4,362,162 $4,362,162 $0 Information Technology 696,141 6,425,946 (6,137,705) (315,607) (95,800) (6,549,112) 572,975 572,975 572,975 Fleet Management 1,791,169 3,523,905 (1,775,702) (2,507,793) (23,256) (4,306,751) 1,008,323 1,008,323 1,008,323 Building Maintenance & Operations - 2,991,842 (2,926,871)- (30,024) (2,956,895) 34,947 34,947 34,947 Total Insurance Service Funds Balance $8,630,291 $23,057,993 ($22,708,240)($2,823,400)($178,237)($25,709,877)$5,978,407 -$5,978,407 $4,362,162 $1,616,245 Trust & Agency Funds Underground Assessments $1,289,630 $714,150 - - ($509,025) ($509,025) $1,494,755 $1,494,755 $1,494,755 Underground Assessment Districts 12/14 957,923 606,106 - - (604,907) (604,907) 959,122 959,122 959,122 Underground Assessment District 4 508,842 337,613 - - (338,143) (338,143) 508,312 508,312 508,312 Post-Employment Benefits Trust Fund 42,458 213,343 (213,115)- - (213,115) 42,686 42,686 42,686 Section 115 Trust Fund 4,500,672 100,000 (1,856,902)- - (1,856,902) 2,743,770 3,246,893 5,990,663 5,990,663 Total Trust Agency Funds Balance $7,299,525 $1,971,212 ($2,070,017)-($1,452,075)($3,522,092)$5,748,645 $3,246,893 $8,995,538 -$8,995,538 Grand Total $55,478,978 196,573,707 ($151,230,333)($30,923,137)($10,981,002)($193,134,472)$58,918,213 - $58,918,213 $35,327,566 $23,590,647 * Not meeting current Financial Reserve Policy. CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 83 FIVE YEAR FORECAST ALL FUNDS FY 2027 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES s151 s152 s153 s154 2 07/01/2026 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance General Fund Unreserved $5,084,338 $116,486,769 ($103,728,869)- ($5,639,952) ($109,368,821) $12,202,286 ($772,598) $2,592,529 $2,592,529 Transfer from County Lots Parking Fund 446,412 Transfer to Street Lighting Fund (305,744) Transfer to Storm Drain Fund (500,000) Transfer to Capital Improvements Fund (5,000,000) Transfer to Section 115 Trust Fund (3,477,827) Financial Policy Designation 21,101,166 21,101,166 772,598 21,873,764 21,873,764 Reserve for Economic Uncertainty 4,000,000 4,000,000 4,000,000 4,000,000 Total General Fund Balance $30,185,504 $116,486,769 ($103,728,869)-($5,639,952)($109,368,821)$37,303,452 ($8,837,160)$28,466,293 $25,873,764 $2,592,529 Special Revenue Funds Street Lighting & Landscape $21,842 $391,477 ($622,221) ($75,000)- ($697,221) ($283,902) $305,744 $21,842 $21,842 Gas Tax 305,402 2,120,830 (171,276) (1,965,000)- (2,136,276) 289,956 $289,956 $289,956 Asset Forfeiture & Safety Grants 68,764 - - - - - 68,764 68,764 68,764 Police Safety Grants 499,439 209,570 (223,445)- - (223,445) 485,564 485,564 485,564 Grants - 100,000 - (100,000)- (100,000)- - - Prop A 883,873 946,123 (966,325)- (10,587) (976,912) 853,084 853,084 853,084 Prop C 1,420,789 800,019 (35,664) (2,000,000)- (2,035,664) 185,144 185,144 185,144 AB 2766 112,835 53,520 - - -- 166,356 166,356 166,356 Measure R 129,613 628,144 (39,556) (500,000)- (539,556) 218,201 218,201 218,201 Measure M 449,869 673,957 (55,378) (700,000)- (755,378) 368,448 368,448 368,448 Measure W 1,850,869 465,285 - - -- 2,316,154 2,316,154 2,316,154 Total Special Revenue Funds Balance $5,743,296 $6,388,926 ($2,113,865)($5,340,000)($7,464,452)$4,667,770 $305,744 $4,973,514 -$4,973,514 Capital Project Funds Capital Improvements $2,164,556 $1,144,398 ($393,025) ($4,418,000) ($1,861,588) ($6,672,613) ($3,363,659) $5,000,000 $1,636,341 $1,500,000 $136,341 Bond Construction 213,166 - - - - - 213,166 213,166 213,166 Underground Utility District Construction 1,248,447 - - - - - 1,248,447 1,248,447 1,248,447 Total Capital Project Funds Balance $3,626,169 $1,144,398 ($393,025)($4,418,000)($1,861,588)($6,672,613)($1,902,046)$5,000,000 $3,097,954 $1,500,000 $1,597,954 Enterprise Funds Water*$1,904,314 $19,483,381 ($16,579,364) ($3,130,000) ($94,411) ($19,803,775) $1,583,920 $1,583,920 1,583,920 - Storm Drain* 179,472 2,332,425 (1,546,656) (1,175,000) (11,975) (2,733,631) (221,734) 500,000 278,266 278,266 - Sewer*653,651 5,177,901 (2,710,956) (2,249,440) (36,446) (4,996,842) 834,710 834,710 834,710 - Parking 1,030,753 6,290,225 (2,577,592) (950,000) (661,314) (4,188,906) 3,132,072 - 2,770,052 1,079,635 1,690,416 County Parking Lots - 1,643,354 (338,297)- (858,645) (1,196,942) 446,412 (446,412) - - - State Pier & Parking 259,088 1,195,741 (717,214)- (3,819) (721,033) 733,796 - 733,796 240,344 493,452 Enterprise Fund Reserves: Total Enterprise Funds Balance $4,389,300 $36,123,025 ($24,470,079)($7,504,440)($1,666,610)($33,641,129)$6,871,196 $53,588 $6,562,764 $4,378,896 $2,183,868 FY 2027 07/01/2027 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 84 FIVE YEAR FORECAST ALL FUNDS FY 2027 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES s151 s152 s153 s154 2 07/01/2026 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance FY 2027 07/01/2027 Internal Service Funds Insurance Reserve $4,362,162 $11,993,478 ($11,981,135)- ($29,157) ($12,010,292) $4,345,348 $4,345,348 $4,345,348 $0 Information Technology 572,975 5,644,875 (5,308,933) (250,000) (95,800) (5,654,733) 563,117 563,117 563,117 Fleet Management 1,008,323 3,555,914 (1,862,313) (1,500,000) (23,256) (3,385,569) 1,178,668 1,178,668 1,178,668 Building Maintenance & Operations 34,947 2,291,873 (2,296,796)- (30,024) (2,326,820)- - - Total Insurance Service Funds Balance $5,978,407 $23,486,141 ($21,449,177)($1,750,000)($178,237)($23,377,414)$6,087,133 -$6,087,133 $4,345,348 $1,741,785 Trust & Agency Funds Underground Assessments $1,494,755 $735,575 - - ($509,250) ($509,250) $1,721,080 $1,721,080 $1,721,080 Underground Assessment Districts 12/14 959,122 618,228 - - (609,000) (609,000) 968,350 968,350 968,350 Underground Assessment District 4 508,312 344,365 - - (337,000) (337,000) 515,677 515,677 515,677 Post-Employment Benefits Trust Fund 42,686 213,659 (214,593)- - (214,593) 41,751 41,751 41,751 Section 115 Trust Fund 5,990,663 102,000 (2,500,935)- - (2,500,935) 3,591,728 3,477,827 7,069,555 7,069,555 Total Trust Agency Funds Balance $8,995,538 $2,013,827 ($2,715,528)-($1,455,250)($4,170,778)$6,838,586 $3,477,827 $10,316,413 -$10,316,413 Grand Total $58,918,213 $185,643,085 ($154,870,543)($19,012,440)($10,812,224)($184,695,207)$59,866,092 - $59,504,071 $36,098,008 $23,406,064 * Not meeting current Financial Reserve Policy. CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 85 FIVE YEAR FORECAST ALL FUNDS FY 2028 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES T151 T152 T153 T154 2 07/01/2027 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance General Fund Unreserved $2,592,529 $121,238,375 ($107,759,915)- ($5,639,952) ($113,399,867) $10,431,037 ($806,209) $568,811 $568,811 Transfer from County Lots Parking Fund 494,980 Transfer to Street Lighting Fund (326,966) Transfer to Storm Drain Fund - Transfer to Capital Improvements Fund (5,500,000) Transfer to Section 115 Trust Fund (3,724,031) Financial Policy Designation 21,873,764 21,873,764 806,209 22,679,973 22,679,973 Reserve for Economic Uncertainty 4,000,000 4,000,000 4,000,000 4,000,000 Total General Fund Balance $28,466,293 $121,238,375 ($107,759,915)-($5,639,952)($113,399,867)$36,304,801 ($9,056,018)$27,248,784 $26,679,973 $568,811 Special Revenue Funds Street Lighting & Landscape $21,842 $391,616 ($643,582) ($75,000)- ($718,582) ($305,124) $326,966 $21,842 $21,842 Gas Tax $289,956 2,143,144 (103,801) (1,165,000)- (1,268,801) 1,164,299 $1,164,299 $1,164,299 Asset Forfeiture & Safety Grants 68,764 - - - - - 68,764 68,764 68,764 Police Safety Grants 485,564 209,861 (227,007)- - (227,007) 468,418 468,418 468,418 Grants - 100,000 - (100,000)- (100,000)- - - Prop A 853,084 974,276 (996,663)- (10,587) (1,007,250) 820,111 820,111 820,111 Prop C 185,144 823,576 (35,664) (800,000)- (835,664) 173,056 173,056 173,056 AB 2766 166,356 53,671 - - -- 220,027 220,027 220,027 Measure R 218,201 646,375 (44,550) (500,000)- (544,550) 320,027 320,027 320,027 Measure M 368,448 693,860 (57,915) (650,000)- (707,915) 354,393 354,393 354,393 Measure W 2,316,154 466,391 - - -- 2,782,545 2,782,545 2,782,545 Total Special Revenue Funds Balance $4,973,514 $6,502,770 ($2,109,181)($3,290,000)($5,409,768)$6,066,515 $326,966 $6,393,481 -$6,393,481 Capital Project Funds Capital Improvements $1,636,341 $1,201,169 ($286,723) ($3,868,000) ($2,090,713) ($6,245,436) ($3,407,926) $5,500,000 $2,092,074 $2,000,000 $92,074 Bond Construction 213,166 - - - - - 213,166 213,166 213,166 Underground Utility District Construction 1,248,447 - - - - - 1,248,447 1,248,447 1,248,447 Total Capital Project Funds Balance $3,097,954 $1,201,169 ($286,723)($3,868,000)($2,090,713)($6,245,436)($1,946,313)$5,500,000 $3,553,687 $2,000,000 $1,553,687 Enterprise Funds Water*$1,583,920 $20,917,948 ($17,059,625) ($4,670,000) ($94,411) ($21,824,036) $677,832 $677,832 677,832 - Storm Drain 278,266 2,411,164 (1,601,322) (210,000) (11,975) (1,823,297) 866,133 - 866,133 537,766 328,368 Sewer*834,710 5,377,413 (2,793,074) (3,335,000) (36,446) (6,164,520) 47,603 47,603 47,603 - Parking 2,770,052 6,297,197 (2,655,546) (800,000) (661,189) (4,116,735) 4,950,514 - 4,588,493 1,105,578 3,482,915 County Parking Lots - 1,700,479 (346,854)- (858,645) (1,205,499) 494,980 (494,980) - - - State Pier & Parking 733,796 1,230,699 (736,249) (700,000) (3,819) (1,440,068) 524,427 - 524,427 246,689 277,738 Enterprise Fund Reserves: Total Enterprise Funds Balance $6,562,764 $37,934,900 ($25,192,670)($9,715,000)($1,666,485)($36,574,155)$7,923,509 ($494,980)$7,066,509 $2,977,488 $4,089,021 FY 2028 07/01/2028 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 86 FIVE YEAR FORECAST ALL FUNDS FY 2028 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES T151 T152 T153 T154 2 07/01/2027 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance FY 2028 07/01/2028 Internal Service Funds Insurance Reserve $4,345,348 $12,125,624 ($12,116,582)- ($29,157) ($12,145,739) $4,325,233 $4,325,233 $4,325,233 $0 Information Technology 563,117 5,832,572 (5,470,514) (250,000) (95,800) (5,816,314) 579,375 579,375 579,375 Fleet Management 1,178,668 3,614,656 (1,926,255) (1,500,000) (23,256) (3,449,511) 1,343,813 1,343,813 1,343,813 Building Maintenance & Operations - 2,495,323 (2,465,299)- (30,024) (2,495,323)- - - Total Insurance Service Funds Balance $6,087,133 $24,068,175 ($21,978,649)($1,750,000)($178,237)($23,906,886)$6,248,421 -$6,248,421 $4,325,233 $1,923,187 Trust & Agency Funds Underground Assessments $1,721,080 - - - - - $1,721,080 $1,721,080 $1,721,080 Underground Assessment Districts 12/14 968,350 630,593 - - (609,000) (609,000) 989,943 989,943 989,943 Underground Assessment District 4 515,677 351,253 - - (337,000) (337,000) 529,930 529,930 529,930 Post-Employment Benefits Trust Fund 41,751 213,978 (215,897)- - (215,897) 39,832 39,832 39,832 Section 115 Trust Fund 7,069,555 104,040 (3,083,216)- - (3,083,216) 4,090,379 3,724,031 7,814,410 7,814,410 Total Trust Agency Funds Balance $10,316,413 $1,299,863 ($3,299,112)-($946,000)($4,245,112)$7,371,164 $3,724,031 $11,095,195 -$11,095,195 Grand Total $59,504,072 $192,245,250 ($160,626,251)($18,623,000)($10,531,974)($189,781,225)$61,968,097 - $61,606,077 $35,982,695 $25,623,383 * Not meeting current Financial Reserve Policy. CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 87 FIVE YEAR FORECAST ALL FUNDS FY 2029 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES U151 U152 U153 U154 2 07/01/2028 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance General Fund Unreserved $568,811 $126,046,719 ($110,784,758)- ($5,639,952) ($116,424,710) $10,190,820 ($604,969) $316,735 $316,735 Transfer from County Lots Parking Fund 545,219 Transfer to Street Lighting Fund (348,094) Transfer to Storm Drain Fund - Transfer to Capital Improvements Fund (5,500,000) Transfer to Section 115 Trust Fund (3,966,242) Financial Policy Designation 22,679,973 22,679,973 604,969 23,284,942 23,284,942 Reserve for Economic Uncertainty 4,000,000 4,000,000 4,000,000 4,000,000 Total General Fund Balance $27,248,784 $126,046,719 ($110,784,758)-($5,639,952)($116,424,710)$36,870,793 ($9,269,117)$27,601,677 $27,284,942 $316,735 Special Revenue Funds Street Lighting & Landscape $21,842 $391,756 ($664,850) ($75,000)- ($739,850) ($326,252) $348,094 $21,842 $21,842 Gas Tax $1,164,299 2,165,703 (202,895) (2,490,000)- (2,692,895) 637,108 $637,108 $637,108 Asset Forfeiture & Safety Grants 68,764 - - - - - 68,764 68,764 68,764 Police Safety Grants 468,418 210,158 (230,822)- - (230,822) 447,755 447,755 447,755 Grants - 100,000 - (100,000)- (100,000)- - - Prop A 820,111 1,003,209 (1,025,142)- (10,587) (1,035,729) 787,590 787,590 787,590 Prop C 173,056 847,832 (35,664) (800,000)- (835,664) 185,224 185,224 185,224 AB 2766 220,027 53,824 - - -- 273,851 273,851 273,851 Measure R 320,027 665,141 (40,742) (500,000)- (540,742) 444,425 444,425 444,425 Measure M 354,393 714,353 (64,187) (800,000)- (864,187) 204,559 204,559 204,559 Measure W 2,782,545 467,519 - (410,000)- (410,000) 2,840,063 2,840,063 2,840,063 Total Special Revenue Funds Balance $6,393,481 $6,619,494 ($2,264,302)($5,175,000)($7,449,889)$5,563,087 $348,094 $5,911,180 -$5,911,180 Capital Project Funds Capital Improvements $2,092,074 $1,248,984 ($351,847) ($2,818,000) ($2,093,588) ($5,263,435) ($1,922,377) $5,500,000 $3,577,623 $3,000,000 $577,623 Bond Construction 213,166 - - - - - 213,166 213,166 213,166 Underground Utility District Construction 1,248,447 - - - - - 1,248,447 1,248,447 1,248,447 Total Capital Project Funds Balance $3,553,687 $1,248,984 ($351,847)($2,818,000)($2,093,588)($5,263,435)($460,764)$5,500,000 $5,039,236 $3,000,000 $2,039,236 Enterprise Funds Water*$677,832 $22,453,684 ($17,369,504) ($5,200,000) ($94,411) ($22,663,915) $467,600 $467,600 467,600 - Storm Drain* 866,133 2,481,197 (1,635,010) (1,210,000) (11,975) (2,856,985) 490,346 - 490,346 490,346 - Sewer*47,603 5,487,006 (2,876,005) (2,400,000) (36,446) (5,312,451) 222,157 222,157 222,157 - Parking 4,588,493 6,304,348 (2,699,306) (350,000) (659,814) (3,709,120) 7,183,720 - 6,821,700 1,119,707 5,701,993 County Parking Lots - 1,759,604 (355,740)- (858,645) (1,214,385) 545,219 (545,219) - - - State Pier & Parking 524,427 1,266,689 (757,291)- (3,819) (761,110) 1,030,007 - 1,030,007 253,703 776,304 Enterprise Fund Reserves: Total Enterprise Funds Balance $7,066,509 $39,752,526 ($25,692,856)($9,160,000)($1,665,110)($36,517,966)$10,301,070 ($545,219)$9,393,830 $2,915,533 $6,478,297 FY 2029 07/01/2029 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 88 FIVE YEAR FORECAST ALL FUNDS FY 2029 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES U151 U152 U153 U154 2 07/01/2028 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance FY 2029 07/01/2029 Internal Service Funds Insurance Reserve $4,325,233 $12,251,418 ($12,252,001)- ($29,157) ($12,281,158) $4,295,493 $4,295,493 $4,295,493 $0 Information Technology 579,375 5,990,495 (5,634,262) (250,000) (95,800) (5,980,062) 589,809 589,809 589,809 Fleet Management 1,343,813 3,674,571 (1,991,742) (1,500,000) (23,256) (3,514,998) 1,503,386 1,503,386 1,503,386 Building Maintenance & Operations - 2,539,148 (2,509,124)- (30,024) (2,539,148)- - - Total Insurance Service Funds Balance $6,248,421 $24,455,633 ($22,387,129)($1,750,000)($178,237)($24,315,366)$6,388,688 -$6,388,688 $4,295,493 $2,093,195 Trust & Agency Funds Underground Assessments $1,721,080 - - - - - $1,721,080 $1,721,080 $1,721,080 Underground Assessment Districts 12/14 989,943 643,205 - - (609,000) (609,000) 1,024,148 1,024,148 1,024,148 Underground Assessment District 4 529,930 358,278 - - (337,000) (337,000) 551,207 551,207 551,207 Post-Employment Benefits Trust Fund 39,832 214,300 (217,083)- - (217,083) 37,049 37,049 37,049 Section 115 Trust Fund 7,814,410 106,121 (3,665,496)- - (3,665,496) 4,255,034 3,966,242 8,221,276 8,221,276 Total Trust Agency Funds Balance $11,095,195 $1,321,903 ($3,882,579)-($946,000)($4,828,579)$7,588,518 $3,966,242 $11,554,760 -$11,554,760 Grand Total $61,606,077 $199,445,260 ($165,363,471)($18,903,000)($10,533,474)($194,799,945)$66,251,392 - $65,889,371 $37,495,968 $28,393,403 * Not meeting current Financial Reserve Policy. CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 89 FIVE YEAR FORECAST ALL FUNDS FY 2030 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES v151 v152 v153 v154 2 07/01/2029 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance General Fund Unreserved $316,735 $130,088,265 ($114,367,357)- ($5,639,952) ($120,007,309) $10,397,691 ($716,519) $184,337 $184,337 Transfer from County Lots Parking Fund 597,791 Transfer to Street Lighting Fund (371,938) Transfer to Storm Drain Fund - Transfer to Capital Improvements Fund (5,500,000) Transfer to Section 115 Trust Fund (4,222,689) Financial Policy Designation 23,284,942 23,284,942 716,519 24,001,461 24,001,461 Reserve for Economic Uncertainty 4,000,000 4,000,000 4,000,000 4,000,000 Total General Fund Balance $27,601,677 130,088,265 ($114,367,357)-($5,639,952)($120,007,309)$37,682,633 ($9,496,836)$28,185,798 $28,001,461 $184,337 Special Revenue Funds Street Lighting & Landscape $21,842 $391,898 ($688,836) ($75,000)- ($763,836) ($350,096) $371,938 $21,842 $21,842 Gas Tax $637,108 2,188,510 (116,562) (1,165,000)- (1,281,562) 1,544,056 $1,544,056 $1,544,056 Asset Forfeiture & Safety Grants 68,764 - - - - - 68,764 68,764 68,764 Police Safety Grants 447,755 210,461 (234,771)- - (234,771) 423,445 423,445 423,445 Grants - 100,000 - (100,000)- (100,000)- - - Prop A 787,590 1,033,003 (1,049,364)- (10,587) (1,059,951) 760,642 760,642 760,642 Prop C 185,224 872,806 (35,664) (1,000,000)- (1,035,664) 22,365 22,365 22,365 AB 2766 273,851 53,981 - - -- 327,832 327,832 327,832 Measure R 444,425 684,456 (50,027) (500,000)- (550,027) 578,855 578,855 578,855 Measure M 204,559 735,455 (80,043) (800,000)- (880,043) 59,971 59,971 59,971 Measure W 2,840,063 468,669 - (1,520,000)- (1,520,000) 1,788,732 1,788,732 1,788,732 Total Special Revenue Funds Balance $5,911,180 $6,739,240 ($2,255,267)($5,160,000)($7,425,854)$5,224,566 $371,938 $5,596,504 -$5,596,504 Capital Project Funds Capital Improvements $3,577,623 $1,286,454 ($301,960) ($3,668,000) ($2,090,838) ($6,060,798) ($1,196,721) $5,500,000 $4,303,279 $4,000,000 $303,279 Bond Construction 213,166 - - - - - 213,166 213,166 213,166 Underground Utility District Construction 1,248,447 - - - - - 1,248,447 1,248,447 1,248,447 Total Capital Project Funds Balance $5,039,236 $1,286,454 ($301,960)($3,668,000)($2,090,838)($6,060,798)$264,892 $5,500,000 $5,764,892 $4,000,000 $1,764,892 Enterprise Funds Water*$467,600 $24,103,706 ($17,547,416) ($3,100,000) ($94,411) ($20,741,827) $3,829,480 $3,829,480 3,829,480 - Storm Drain* 490,346 2,553,315 (1,707,879) (1,285,000) (11,975) (3,004,854) 38,806 - 38,806 38,806 - Sewer*222,157 5,860,581 (2,956,667) (2,750,000) (36,446) (5,743,113) 339,625 339,625 339,625 - Parking 6,821,700 6,311,682 (2,791,886) (350,000) (659,814) (3,801,700) 9,331,682 - 8,969,662 1,150,567 7,819,095 County Parking Lots - 1,820,798 (364,362)- (858,645) (1,223,007) 597,791 (597,791) - - - State Pier & Parking 1,030,007 1,303,741 (778,621)- (3,819) (782,440) 1,551,308 - 1,551,308 260,813 1,290,495 Enterprise Fund Reserves: Total Enterprise Funds Balance $9,393,830 $41,953,823 ($26,146,831)($7,485,000)($1,665,110)($35,296,941)$16,050,713 ($597,791)$15,090,901 $5,981,311 $9,109,590 FY 2030 07/01/2030 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 90 FIVE YEAR FORECAST ALL FUNDS FY 2030 SCHEDULE OF RESERVED & DESIGNATED FUND BALANCES v151 v152 v153 v154 2 07/01/2029 Beginning Estimated Operating Capital Equip Debt Service Total Fund Balance Fund Total Fund Reserves Unreserved Balance Revenues Expenditures & Projects Payments Expenditures Before Xfers Transfers Balance End Balance End Balance FY 2030 07/01/2030 Internal Service Funds Insurance Reserve $4,295,493 $12,379,465 ($12,385,194)- ($29,157) ($12,414,351) $4,260,607 $4,260,607 $4,260,607 - Information Technology 589,809 6,003,398 (5,542,115) (250,000) (95,800) (5,887,915) 705,291 705,291 705,291 Fleet Management 1,503,386 3,735,686 (2,055,293) (1,500,000) (23,256) (3,578,549) 1,660,523 1,660,523 1,660,523 Building Maintenance & Operations - 2,575,327 (2,545,303)- (30,024) (2,575,327)- - - Total Insurance Service Funds Balance $6,388,688 $24,693,876 ($22,527,904)($1,750,000)($178,237)($24,456,141)$6,626,422 -$6,626,422 $4,260,607 $2,365,814 Trust & Agency Funds Underground Assessments $1,721,080 - - - - - $1,721,080 $1,721,080 $1,721,080 Underground Assessment Districts 12/14 1,024,148 656,069 - - (609,001) (609,001) 1,071,215 1,071,215 1,071,215 Underground Assessment District 4 551,207 365,443 - - (337,000) (337,000) 579,651 579,651 579,651 Post-Employment Benefits Trust Fund 37,049 214,625 (218,311)- - (218,311) 33,363 33,363 33,363 Section 115 Trust Fund 8,221,276 108,243 (3,721,906)- - (3,721,906) 4,607,614 4,222,689 8,830,303 8,830,303 Total Trust Agency Funds Balance $11,554,760 $1,344,380 ($3,940,217)-($946,001)($4,886,218)$8,012,923 $4,222,689 $12,235,612 -$12,235,612 Grand Total $65,889,372 206,106,037 ($169,539,536)($18,063,000)($10,530,725)($198,133,261)$73,862,148 - $73,500,129 $42,243,379 $31,256,750 * Not meeting current Financial Reserve Policy. CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 91 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 392 Prior Year Appropriation FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total CIP Project Funding Summary Street Lighting and Landscape Fund - 75,000 75,000 75,000 75,000 75,000 375,000 Gas Tax Fund 2,224,432 2,145,000 1,965,000 1,165,000 2,490,000 1,165,000 11,154,432 Grants Fund 6,470,500 - 100,000 100,000 100,000 100,000 6,870,500 Prop C Fund 7,408,432 650,000 2,000,000 800,000 800,000 1,000,000 12,658,432 Air Quality Fund 191,214 - - - - - 191,214 Measure R Fund 2,569,250 360,000 500,000 500,000 500,000 500,000 4,929,250 Measure M Fund 18,342,709 1,455,000 700,000 650,000 800,000 800,000 22,747,709 Measure W Fund 25,704,101 4,105,000 - - 410,000 1,520,000 31,739,101 CIP Fund 5,749,729 6,267,000 4,418,000 3,868,000 2,818,000 3,668,000 26,788,729 Water Fund 4,988,730 3,040,000 3,130,000 4,670,000 5,200,000 3,100,000 24,128,730 Storm Drain Fund 2,358,274 1,133,337 1,175,000 210,000 1,210,000 1,285,000 7,371,611 Sewer Fund 15,992,416 3,250,000 2,249,440 3,335,000 2,400,000 2,750,000 29,976,856 Parking Fund 1,285,000 4,995,000 950,000 800,000 350,000 350,000 8,730,000 State Pier and Lot Fund 325,000 - - 700,000 - - 1,025,000 Total Funding Sources 93,609,787 27,475,337 17,262,440 16,873,000 17,153,000 16,313,000 188,686,564 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 94 Prior Appropriations Remaining FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Annual Streetlight Replacement Program - 75,000 75,000 75,000 75,000 75,000 375,000 Total Street Lighting and Landscape Fund -$75,000 $75,000 $75,000 $75,000 $75,000 $375,000 Gas Tax Fund Annual Street Resurfacing Program 1,109,314 915,000 150,000 650,000 350,000 650,000 3,824,314 Triennial Pavement Management System Update 34,085 - 100,000 - - 100,000 234,085 Ocean Drive Walk Street Crossings 400,000 - -- - - 400,000 Annual Citywide Concrete Repair Program 550,746 365,000 265,000 465,000 365,000 365,000 2,375,746 MBB Pavement Rehabilitation from Sepulveda Blvd. to Dianthus St.- 350,000 - - - - 350,000 Aviation Blvd and 33rd Missing Sidewalk (Partial Grant 5310)- 40,000 - - - - 40,000 ADA Ramps Cycle 4 (Non-CDBG Funding)- 125,000 - - - - 125,000 ADA Ramps Cycle 5 (Non-CDBG Funding)- 75,000 50,000 - - - 125,000 ADA Ramps Cycle 6 (non-CDBG Funding)- 75,000 - 50,000 - - 125,000 ADA Ramps Cycle 7 (non-CDBG Funding)- -- - 125,000 - 125,000 ADA Ramps Cycle 8 (non-CDBG Funding)- -- - 75,000 50,000 125,000 ADA Ramps Cycle 9 (non-CDBG Funding)- -- - 75,000 - 75,000 Voter Center ADA Improvements - 200,000 - -- - 200,000 Aviation at Artesia Right Turn Lane Project Closure - -- -- - - Biennial Slurry Seal Program 130,287 - 1,400,000 - 1,500,000 - 3,030,287 Total Gas Tax Fund $2,224,432 $2,145,000 $1,965,000 $1,165,000 $2,490,000 $1,165,000 $11,154,432 Grants and Other Outside Funds Sports Court at Marine Avenue Park - Pay N Play (Partial Measure A)400,000 - - - - - 400,000 MBB Complete Streets Corridor - Feasibility/Design (Measure M)400,000 - - - - - 400,000 Highland Corridor Complete Streets Design (Measure M)500,000 - - - - - 500,000 ADA Curb Ramps-Cycle 4 (CDBG)- - 100,000 100,000 - - 200,000 ADA Curb Ramps-Cycle5 (CDBG)- - - - 100,000 100,000 200,000 El Porto Water Infrastructure Improvements (Partial CPF)3,375,000 - - - - - 3,375,000 Peck Avenue Storm Drain Improvements (Partial Grant CPF)200,000 - - - - - 200,000 Rosecrans Bike Lane Improvements (Partial Grant CPF)1,000,000 - - - - - 1,000,000 Replace Escalators in Metlox Plaza (Cost Share)375,000 - - - - - 375,000 Intersection Improvements Project (Cycle 11 HSIP)220,500 - - - - - 220,500 Total Grants Fund $6,470,500 -$100,000 $100,000 $100,000 $100,000 $6,870,500 Prop C Fund Annual Street Resurfacing Program 1,827,243 400,000 800,000 800,000 800,000 1,000,000 5,627,243 MBB and Sepulveda Intersection Improvements 1,546,411 - - - - - 1,546,411 Sepulveda Intersection Improvements 235,206 - - - - - 235,206 - 100,000 - - - - 100,000 Sepulveda Bridge Widening Local Return Project Closure 107,897 - - - - - 107,897 Sepulveda Bridge Widening Project Closure 3,691,675 - - - - - 3,691,675 Citywide Crossgutter Improvements - 150,000 1,200,000 - - - 1,350,000 Total Prop C Fund $7,408,432 $650,000 $2,000,000 $800,000 $800,000 $1,000,000 $12,658,432 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 95 Prior Appropriations Remaining FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Electric Vehicle Chargers at Marine Ave. Park 191,214 - - - - - 191,214 Total AB 2766 Air Quality Fund $191,214 -----$191,214 Measure R Fund Annual Street Resurfacing Program 174,632 - - 500,000 500,000 500,000 1,674,632 Rosecrans Bike Lane Improvements (Partial Grant CPF)750,000 - - - - - 750,000 MBB Pavement Rehabilitation from Sepulveda Blvd. to Dianthus St.1,000,000 - - - - - 1,000,000 Sidewalk Installation Across Veteran's Parkway at 6th and 10th Streets - - 500,000 - - - 500,000 Aviation Blvd and 33rd Missing Sidewalk (Partial Grant 5310)644,618 360,000 - - - - 1,004,618 Total Measure R Fund $2,569,250 $360,000 $500,000 $500,000 $500,000 $500,000 $4,929,250 Measure M Fund Annual Street Resurfacing Program 600,000 1,155,000 500,000 250,000 500,000 500,000 3,505,000 Annual Citywide Traffic Signal Replacements 300,000 300,000 200,000 300,000 300,000 300,000 1,700,000 Manhattan Beach Advanced Traffic Signal (MBATS) System 15,996,936 - - - - - 15,996,936 MBB and Pacific Ave Intersection Improvements 1,098,661 - - - - - 1,098,661 ADA Transition Plan within Public Rights of Way 63,361 - - 100,000 - - 163,361 MBB Eastbound Left-Turn Improvement at Aviation Blvd. (Measure M)283,751 - - - - - 283,751 Total Measure M Fund $18,342,709 $1,455,000 $700,000 $650,000 $800,000 $800,000 $22,747,709 Measure W Fund TMDL Trash Treatment - - - - - - - Shelley Street Storm Drain Improvements - - - - 410,000 1,520,000 1,930,000 Beach Cities Green Streets Stormwater Infiltration 100,000 50,000 - - - - 150,000 Peck Avenue Storm Drain Improvements 38,553 - - - - - 38,553 28th Street Stormwater Infiltration 25,565,548 4,055,000 - - - - 29,620,548 Total Measure W Fund $25,704,101 $4,105,000 --$410,000 $1,520,000 $31,739,101 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 96 Prior Appropriations Remaining FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Annual Park Improvements/Replacement Program - Playground Equipment - 50,000 50,000 50,000 50,000 50,000 250,000 Annual Park Improvements/Replacement Program - Sport Courts 100,000 68,000 68,000 68,000 68,000 68,000 440,000 Annual Park Improvements/Replacement Program - All Other - 75,000 75,000 150,000 150,000 150,000 600,000 Deferred Park Maintenance 616,934 - - - - - 616,934 Sand Dune Park Improvements 6,586 500,000 2,750,000 750,000 - - 4,006,586 Sports Court at Marine Avenue Park - Pay N Play (Partial Measure A)40,000 - - - - - 40,000 Replace Fencing at Marine Avenue Park Soccer Field - 150,000 - - - - 150,000 Begg Facility Parking Lot Resurfacing - -- - 100,000 300,000 400,000 Manhattan Village Field Lighting Replacement 62,230 300,000 - - - - 362,230 Renovation of City Hall Employee Lounge - 100,000 - - - - 100,000 City Facility Renovations 808,030 1,750,000 - 650,000 - - 3,208,030 City Council Chambers Renovations - Feasibility 144,975 - - - - - 144,975 Gateway and Monument Sign Replacement - - - 100,000 300,000 - 400,000 Wayfinding Program - Phase 2 - - - 100,000 400,000 - 500,000 Begg Pool Facility Upgrades 825,178 - - 800,000 - - 1,625,178 Manhattan Village Aquatic Pool Complex - 50,000 - - - - 50,000 Annual Non-Motorized Transport. Program (Bike lanes, crosswalks)- 40,000 50,000 100,000 50,000 50,000 290,000 City Owned Refuse Enclosures Improvements - -- - - 250,000 250,000 School District Project 6,431 250,000 - - - - 256,431 Solar Power Installation at City Facilities - - - 150,000 150,000 150,000 450,000 Annual Facilities Capital Maintenance Program - 50,000 50,000 200,000 200,000 200,000 700,000 City Hall Elevators Modernization 294,500 - - - - - 294,500 Irrigation for Tree Wells in North Manhattan Beach - - - 300,000 - - 300,000 Upgrade Main Electrical Feed to Public Works Yard 50,000 - - - - 400,000 450,000 Mariposa Fitness Station Parcourse Equipment Replacement - - - 200,000 - - 200,000 Manhattan Heights Park Improvements (Restroom, Turf, Rock Wall)73,120 1,000,000 - - - 1,073,120 City Hall HVAC Replacement 277,450 - - - - - 277,450 Police/Fire Facility Exterior Painting - - - - - 500,000 500,000 Voter Center ADA Improvements - 500,000 - - - - 500,000 Senior and Scout Community Center Renovation 2,101,440 - - - - - 2,101,440 Annual Citywide Security Cameras Program 114,216 - - 250,000 500,000 500,000 1,364,216 Annual Street Resurfacing Program - 600,000 200,000 - - - 800,000 Polliwog Park Wooden Pedestrian Bridge Replacement - -- - - 50,000 50,000 Outdoor Dining Project #1 - Flex Spaces - - 1,000,000 - - - 1,000,000 Outdoor Dining Project #2 - Sidewalk Widening - -- - - 1,000,000 1,000,000 Project at 400 Manhattan Beach Boulevard 216,000 784,000 - - - - 1,000,000 Biennial Slurry Seal Program 12,639 - 175,000 - 850,000 - 1,037,639 Total CIP Fund $5,749,729 $6,267,000 $4,418,000 $3,868,000 $2,818,000 $3,668,000 $26,788,729 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 97 Prior Appropriations Remaining FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Recycled Water Feasibility Study for MBB Medians & Highland Ave Tree Wells - 40,000 - - - - 40,000 Larsson Street Booster Station Improvements - - 1,330,000 1,970,000 - - 3,300,000 Water Lift Station PLC Upgrades - -- - - - - Electronics Automation - SCADA, etc.91,923 - - - - - 91,923 Generator Upgrades - Well 15 and Block 35 500,000 - - - - - 500,000 Block 35 Ground Level Reservoir Replacement - - 1,200,000 - - - 1,200,000 Block 35 Elevated Tank Improvements - - - - - - - Water Meter Upgrade and Automation 226,028 - - - - - 226,028 Water Master Plan Update 100,000 - 100,000 - - - 200,000 Annual Groundwater Wells Capital Maintenance Program 850,000 - 100,000 100,000 100,000 100,000 1,250,000 El Porto Water Infrastructure Improvements (Partial CPF)- 1,400,000 - 2,100,000 2,100,000 - 5,600,000 2nd Street Booster Station Improvements 1,365,734 1,600,000 400,000 - - - 3,365,734 Annual Water Infrastructure Improvements 1,855,045 - - 500,000 3,000,000 3,000,000 8,355,045 Total Water Fund $4,988,730 $3,040,000 $3,130,000 $4,670,000 $5,200,000 $3,100,000 $24,128,730 Storm Drain Fund CCTV Storm Drain System - - - - - 75,000 75,000 Manhattan Beach Dominguez Channel Stormwater Infiltration - Feasibility - 125,000 575,000 - - - 700,000 Golf Course Storm Drain Lift Station Electrical Upgrades - 200,000 300,000 - - - 500,000 Beach Cities Green Streets Stormwater Infiltration 362,500 - - - - - 362,500 Peck Avenue Storm Drain Improvements (Partial Grant CPF)631,688 - - - - - 631,688 Shelley Street Storm Drain Improvements - - - - - - - Annual Storm Drain Repairs 415,893 - - - 1,000,000 1,000,000 2,415,893 Storm Drain Capital Best Management Practices (BMPs)- - - 210,000 210,000 210,000 630,000 TMDL Trash Treatment 948,193 - - - - - 948,193 Dominguez Channel Trash TMDL - 708,337 300,000 - - - 1,008,337 American Martyrs Stormwater Sump Hydrology and Capacity Study - 100,000 - - - - 100,000 Total Storm Drain Fund $2,358,274 $1,133,337 $1,175,000 $210,000 $1,210,000 $1,285,000 $7,371,611 Sewer Fund Sewer Lift Stations PLC Upgrades - - - - - - - Sewer Master Plan Update - - 260,000 - - - 260,000 Annual Rehabilitation of Gravity Sewer Mains 3,324,582 - - 235,000 - - 3,559,582 Bell Lift Station Upgrade 55,000 - 100,000 - - 300,000 455,000 Palm Lift Station Upgrade 55,000 - 100,000 370,000 - 2,050,000 2,575,000 Meadows Lift Station Upgrade 55,000 - 100,000 480,000 2,400,000 400,000 3,435,000 Voorhees Lift Station Upgrade 4,684,775 - 150,000 - - - 4,834,775 Pacific Lift Station Replacement (Gravity Sewer)6,728,619 3,250,000 - - - - 9,978,619 Poinsettia Ave Sewer Lift Station and Force Main Replacement 1,089,440 - 1,539,440 2,250,000 - - 4,878,880 Total Sewer Fund $15,992,416 $3,250,000 $2,249,440 $3,335,000 $2,400,000 $2,750,000 $29,976,856 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 98 Prior Appropriations Remaining FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Paint Metlox Parking Structure - - - 450,000 - - 450,000 Annual Parking Payment Facilities Improvements Program - 2,900,000 300,000 100,000 100,000 100,000 3,500,000 Annual Parking Facilities Capital Improvements Program - - 250,000 250,000 250,000 250,000 1,000,000 Waterproofing City Hall and Police/Fire Parking Structures 100,000 - 400,000 - - - 500,000 Parking Structure Lot 3 Replacement 1,095,000 1,000,000 - - - - 2,095,000 Redesign and Repurpose of Metlox Slab Fountain Area 90,000 - - - - - 90,000 Replace Escalators in Metlox Plaza (Cost Share)- 1,095,000 - - - - 1,095,000 Total Parking Fund $1,285,000 $4,995,000 $950,000 $800,000 $350,000 $350,000 $8,730,000 State Pier and Lot Fund Pier Structural Inspection Condition Assessment Report 325,000 - - - - - 325,000 Upper Pier Parking Lots Railing Replacement Project - - - 700,000 - - 700,000 Total State Pier and Lot Fund $325,000 --$700,000 --$1,025,000 Total Funding Sources $93,609,787 $27,475,337 $17,262,440 $16,873,000 $17,153,000 $16,313,000 $188,686,564 CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 A D O P T E D B U D G E T Pa g e 3 99 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 400 Expenditure Prior Year Adopted FY 2026 Department Description / Vehicle to Be Replaced Type Carryforward Expenditure Adopted Total Equipment Purchases - - - Fire Department Laptop Replacement - Training/Class Room Replacement -$2,500 $2,500 Information Technology City Datacenter Infrastructure Replacement 172,857 172,857 Information Technology Application Delivery Controller Upgrade 85,000 -85,000 Information Technology City Data Storage Upgrades Replacement 57,750 57,750 Total Equipment Purchases $85,000 $233,107 $318,107 New Vehicles Parks & Recreation Electric Bus for Dial-A-Ride Program New -$500,000 $500,000 Public Works Mini Excavator New - 100,000 100,000 Replacement Vehicles Police Department Honda Civic (#125)Replacement - 77,030 77,030 Police Department Honda Accord (#127)Replacement - 63,000 63,000 Police Department Ford Explorer (#186)Replacement - 99,790 99,790 Police Department Chevy Equinox (#230)Replacement - 76,089 76,089 Police Department Toyota Tacoma 4X4 (#333)Replacement - 63,000 63,000 Police Department Toyota Tacoma 4X4 (#334)Replacement - 63,000 63,000 Public Works Ford F250 SD (#383)Replacement - 81,366 81,366 Public Works Ford F250 SD Crew Cab (#388)Replacement - 105,000 105,000 Fire Department Ford E-450 Paramedic Rescue (#704)Replacement - 526,657 526,657 Public Works Trailer Carson (#984)Replacement - 5,250 5,250 Public Works Trailer Carson (#985)Replacement - 5,250 5,250 Public Works Wachs Vacuum Trailer (W-27)Replacement - 87,000 87,000 Public Works Tandem Drum Roller (1065)Replacement -97,012 97,012 Parks & Recreation Ford CNG E-Series Cargo (#319)Replacement - 50,000 50,000 Public Works Ford Explorer (#134)Replacement - 50,000 50,000 Police Department Ford Explorer (#184)Replacement - 99,000 99,000 Fire Department Chevy Silverado Utility (#710)Replacement - 206,519 206,519 Police Department Chevy Colorado (#335)Replacement - 63,000 63,000 Police Department Chevy Colorado (#336)Replacement - 63,000 63,000 Police Department GO-4 (#649)Replacement - 64,000 64,000 Police Department Ford Explorer (#181)Replacement - 93,000 93,000 Police Department Chevy Colorado (#337)Replacement - 63,000 63,000 Fire Department Fire Engine Outfitting/Equipment (#716)Replacement 406,830 - 406,830 Total Vehicle Purchases $406,830 $2,700,963 $3,107,793 Total Funded Capital Purchases - Equipment & Vehicles $491,830 $2,934,070 $3,425,900 TOTAL CAPITAL PURCHASES BY DEPARTMENT Management Services - - - Finance - - - Human Resources - - - Parks & Recreation -$550,000 550,000 Police Department - 886,909 886,909 Fire Department 406,830 735,676 1,142,506 Community Development - - - Public Works -530,878 530,878 Information Technology 85,000 230,607 315,607 Grand Total $491,830 $2,934,070 $3,425,900 Represents capital expenditures (units > $5k) only. A majority of the vehicles are purchased by Public Works through the Fleet Fund. A rental charge is then assessed to the respective departments for the estimated life of the vehicle. FY 2026 SCHEDULE OF CAPITAL PURCHASES - EQUIPMENT & VEHICLES EQUIPMENT (Object 61301) COMPUTER EQUIPMENT & SOFTWARE (Objects 61203 & 61204) VEHICLES (Object 61401) CITY OF MANHATTAN BEACH | FY 2026 PROPOSED BUDGET Page 401 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 402 APPENDIXAPPENDIX CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 404 MAJOR REVENUE SOURCES The following are the major revenue sources and basis for estimates for the General Fund. These revenue sources comprise over 75% percent of the City’s General Fund revenues. Other revenues not detailed here are estimated based on local economic trends and historical data. PROPERTY TAX ($ ) PROPERTY TAX FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 30,000,000 40,000,000 50,000,000 20,000,000 Property Tax remains the largest component of General Fund revenues (37.5% of total), and is expected to increase by 5.1% from the FY 2025 estimate. The City's housing market continues to remain strong with high demand of residential properties and new construction projects contributing to increased assessed valuation. Property tax is estimated based on historical data, local economic trends, and independent third party analysis. SALES & USE TAX ($ ) SALES & USE TAX FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 The City’s second largest General Fund revenue source (9.1% of total revenue) is expected to increase from the current year estimate by $186,000 (1.7%). Bolstered by the recent revitalization of the Manhattan Village Mall, industry groups performing positively within the City include General Consumer Goods and Restaurants & Hotels. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 405 PARKING CITATIONS ($ ) PARKING CITATIONS FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Parking Citation fees were recently increased in FY 2025 in an effort to address critical parking infrastructure needs. The new fine of $59 for the average parking citation is slightly less that what other similar cities asses. A portion of parking citation revenue ($12.50 of each citation) goes to the County and State Construction Trust Funds. TRANSIENT OCCUPANCY TAX ($ ) TRANSIENT OCCUPANCY TAX FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 10,000,000 0 2,500,000 5,000,000 7,500,000 This revenue is expected to generate approximately $9.0 million in revenue in FY 2026, or $418,000 (4.9%) over the current fiscal year estimate. This increase is partially attributed to the inclusion of Short- Term Rentals in this category, which has seen significant increases over the previous fiscal year. TOT revenue also affects the CIP Fund since 15% of the first 10% of TOT is dedicated to that fund. INTEREST EARNINGS ($ ) INTEREST EARNINGS FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 500,000 1,000,000 1,500,000 0 2,000,000 The City invests a portion of its reserved funds as authorized by the Investment Policy. These high-grade investments include Federal agency securities, medium-term notes, and certificates of deposit. The increased interest rates set by the Fed have resulted in the City’s maturing investments to be reinvested at slightly higher rates. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 406 BUSINESS LICENSE TAX ($ ) BUSINESS LICENSE TAX FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 3,000,000 4,000,000 5,000,000 6,000,000 The City issues approximately 5,000 business licenses annually, and revenue from this tax is based primarily on the type of business and gross receipts reported. This tax has been resilient in economic downturns and has remained consistent over the past few years, with an exception to a slight decrease attributed to the COVID-19 pandemic. Business License Tax is anticipated to come in $346,000 (6.3%) above the FY 2025 estimate. BUILDING PERMITS & PLAN CHECK FEES ($ ) BUILDING PERMITS & PLAN CHECK FEES FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 3,000,000 4,000,000 5,000,000 2,000,000 Residential and Commercial building activity remains strong within the City. Building Permit and Plan Check fees are currently at all-time highs due to several large commercial projects. Based on the new fee structure developed through the 2025 User Fee Study, the fees from Building Permits and Plan Check Services are expected to increase by roughly $457,000 (11.2%) from the year-end estimates in FY 2025. AMBULANCE & POLICE FALSE ALARM FEES ($ ) AMBULANCE & POLICE FALSE ALARM FEES FY 2 0 1 6 FY 2 0 1 8 FY 2 0 2 0 FY2 0 2 2 FY 2 0 2 4 FY 2 0 2 6 P 500,000 1,000,000 1,500,000 2,000,000 Ambulance fees are based on the total number of Advanced Life Support (ALS) and Basic Life Support (BLS) transports. Since FY 2010-2011, ambulance service fees are matched to those of Los Angeles County, and the number of free police false alarms per 12- month period was reduced from two to one resulting in a jump in those fees that year. Since then, these fees have remained steady, with exception of a decrease attributed to the COVID-19 pandemic. In 2023, the ambulance fee revenues increased significantly due to a combination of improved ambulance collections achieved by the City’s new ambulance billing company and increased collections from delayed payments stemming from the pandemic. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 407 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 408 CITYWIDE SCHEDULE OF FULL-TIME POSITIONS DEPARTMENT FY 2024 FY 2025 FY 2026 CHANGE Management Services*16 16 16 - Finance 18 20 21 1 Human Resources 8 8 8 - Parks & Recreation 21 21 21 - Police 117 120 119 (1) Fire 37 41 41 - Community Development 34 39 39 - Public Works 72 77 77 - Information Technology 10 11 12 1 TOTAL FULL-TIME POSITIONS 333 353 354 1 *Includes five elected Councilmembers and elected City Treasurer PERSONNEL CHANGES The Fiscal Year 2026 Budget contains 354 authorized full-time positions (including six elected officials), which incorporates one full-time Finance Department position added on February 18, 2025. The Mid-Year Budget Update (February 18, 2025) can be referenced for additional information on the approved change, as well as staffing adjustments (upgrades) approved in the Public Works Department. MANAGEMENT SERVICES Upgrade one Assistant to the City Manager to Deputy City Manager. Downgrade one Policy & Management Analyst to Senior Management Analyst. FINANCE Added one Accountant (Approved February 18, 2025). Upgrade one Lead Account Specialist to Management Analyst. HUMAN RESOURCES No changes. PARKS & RECREATION Downgrade one Cultural Arts Manager to Senior Recreation Supervisor. POLICE Upgrade one Office Assistant to Administrative Assistant. Reallocate one Technology Specialist position to the Information Technology Department budget and reporting structure. FIRE Realign budget allocation with actual sworn Fire employees* staffing. COMMUNITY DEVELOPMENT No changes. PUBLIC WORKS Upgraded one Water Supervisor to Water Superintendent (Approved February 18, 2025). Downgraded one Maintenance Supervisor to Project Coordinator (Approved February 18, 2025). Upgrade one Utilities Technician to Cross-Connection Control Specialist (or similar title). INFORMATION TECHNOLOGY Upgrade one Technology Systems Engineer to Senior Technology Systems Engineer. Add one Technology Specialist poisition to Department's budget and reporting structure (from Police Department). * 3 Fire Captain/Paramedic positions, which remained in the budget allocation to allow individuals on long-term industrial disability leave, will be reallocated to Firefighter(/Paramedics), consistent with the staffing plan approved by the City Council in February 2024. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 409 LIST OF FULL-TIME POSITIONS Management Services Department Assistant City Clerk 1 City Clerk 1 City Councilmembers 5 City Manager 1 City Treasurer 1 Communications & Civic Engagement Manager 1 Deputy City Clerk 1 Deputy City Manager 1 Digital Communications & Graphics Coordinator 1 Executive Assistant to the City Manager 1 Marketing & Communications Coordinator 1 Senior Management Analyst 1 Management Services Full-Time Position Total 16 Finance Department Account Specialist I/II 4 Accountant 2 Accounting Supervisor 1 Accounting Technician 1 Budget & Financial Analyst 1 Executive Assistant 1 Finance Director 1 Financial Controller 1 Financial Services Manager 1 Grants & Financial Analyst 1 Lead Account Specialist 1 Management Analyst 1 Purchasing Analyst 1 Purchasing Assistant 1 Purchasing Supervisor 1 Revenue Services Supervisor 1 Senior Accountant 1 Finance Full-Time Position Total 21 Human Resources Department Human Resources Analyst 1 Human Resources Assistant 1 Human Resources Director 1 Human Resources Manager 1 Human Resources Technician 2 Risk Manager 1 Senior Human Resources Analyst 1 Human Resources Full-Time Position Total 8 Parks & Recreation Department Administrative Analyst 1 Administrative Assistant 1 Marketing Specialist 1 Parks & Recreation Director 1 Recreation Coordinator 2 Recreation Supervisor 8 Senior Management Analyst 1 Senior Recreation Manager 1 Senior Recreation Supervisor 4 Transportation Services Operator 1 Parks & Recreation Full-Time Position Total 21 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 410 LIST OF FULL-TIME POSITIONS Police Department Administrative Assistant 3 Background Investigator 1 Community Services Officer 12 Crime Analyst 1 Executive Assistant 2 Lead Community Services Officer 3 Lead Police Records Technician 2 Office Assistant 2 Park Services Enforcement Officer 1 Police Captain 2 Police Chief 1 Police Lieutenant 5 Police Officer 53 Police Records Manager 1 Police Records Specialist 1 Police Records Technician 7 Police Sergeant 11 Police Services Officer 6 Police Support Supervisor 1 Property & Evidence Officer 2 Public Safety Systems Specialist 1 Senior Management Analyst 1 Police Full-Time Position Total 119 Fire Department Emergency Preparedness Administrator 1 Executive Assistant 1 Fire Captain/Paramedic 6 Fire Chief 1 Fire Deputy Chief 1 Fire Division Chief 3 Fire Engineer/Paramedic 6 Fire Inspector 1 Fire Marshal 1 Firefighter(/Paramedic)18 Senior Fire Inspector 1 Senior Management Analyst 1 Fire Full-Time Position Total 41 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 411 LIST OF FULL-TIME POSITIONS Community Development Department Administrative Analyst 2 Administrative Assistant 3 Assistant Planner 1 Associate Planner 4 Building Inspector 2 Building Official 1 Code Enforcement Officer I/II 4 Code Enforcement Supervisor 1 Community Development Director 1 Environmental Programs Administrator 1 Executive Assistant 1 Office Assistant 1 Permits Technician 4 Plan Check Engineer 1 Planning Manager 1 Planning Technician 1 Plans Examiner 1 Principal Building Inspector 1 Senior Building Inspector 1 Senior Business Services Analyst 1 Senior Management Analyst 1 Senior Permits Technician 1 Senior Plan Check Engineer 1 Senior Planner 2 Traffic Engineer 1 Community Development Full-Time Position Total 39 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 412 LIST OF FULL-TIME POSITIONS Public Works Department Administrative Analyst 1 Administrative Assistant 2 Associate Engineer 3 Building Maintenance Technician 3 City Engineer 1 Cross-Connection Control Specialist (or similar title)1 Electrician 2 Equipment Maintenance Supervisor 1 Equipment Mechanic I/II 3 Executive Assistant 1 Facilities Supervisor 1 Field Operations Manager 1 Field Operations Supervisor 1 Lead Maintenance Worker 3 Lead Sewer Maintenance Worker 1 Lead Water System Operator 2 Lead Water Treatment Operator 1 Maintenance Assistant 1 Maintenance Supervisor 1 Maintenance Worker I/II 10 Management Analyst 1 Meter Repair Worker 2 Principal Civil Engineer 3 Project Coordinator 1 Public Works Director 1 Public Works Inspector 2 Senior Civil Engineer 4 Senior Engineering Technician 1 Senior Management Analyst 2 Sewer Maintenance Worker 5 Solid Waste Administrator 1 Urban Forester 1 Utilities Manager 1 Utilities Technician 1 Wastewater Supervisor 1 Water Compliance Supervisor 1 Water Meter Technician 1 Water Superintendent 1 Water System Operator I/II 4 Water System Operator III 1 Water Treatment Operator 2 Public Works Full-Time Position Total 77 Information Technology Department Applications Analyst 2 Geographic Information Systems Administrator 1 Information Technology Director 1 Office Assistant 1 Senior Management Analyst 1 Senior Technology Specialist 2 Senior Technology Systems Engineer 1 Technology Specialist 2 Technology Systems Engineer 1 Information Technology Full-Time Position Total 12 Citywide Full-Time Position Total 354 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 413 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 414 SCHEDULE OF ADMINISTRATIVE SERVICE CHARGES In Fiscal Year 2023-2024, the City retained the services of Willdan Financial Services, a firm that specializes in municipal cost allocation plans. Based on their analysis, the following funds receive support from the General Fund in the form of salary and benefits of support staff, utilities, depreciation on buildings, and other indirect costs. The study was completed in FY 2024-2025 and was adopted by the City Council on April 15, 2025. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 415 CITY DEBT SERVICE Pension Obligation Bonds – Citywide Maturity Date: January 1, 2043 In Fiscal Year 2020-2021, the City issued $91.3 million in Pension Obligation Bonds and prepaid 100% of the CalPERS Unfunded Accrued Liability (UAL) of $90.8 million (projected UAL based on the June 30, 2019 valuation) in May 2021. With lower interest rates paid on the bonds compared to the current 7% discount rate charged by CalPERS, the City’s potential budgetary savings is estimated at $36.4 million over 22 years. The City’s Public Safety (Police and Fire) and Miscellaneous plans were combined to align repayment schedules with a maturity date of 2043 thereby reducing the amortization period. The new level debt service payments, averaging $5.5 million annually City-wide, can be found in the Debt Service category in each department’s General Fund Administration program as well as in any Enterprise and Internal Service Fund with a staffing allocation. Marine Sports Fields Lease – General Fund Maturity Date: January 1, 2033 In Fiscal Year 2001, the City entered into a Sale/Leaseback transaction with the Beach Cities Health District (BCHD). This transaction was a result of the City purchasing from TRW (now Northrup Grumman) seven acres of property located at the corner of Marine and Aviation within the City of Manhattan Beach. The City subsequently sold the property to BCHD with an exclusive agreement to lease back six of the seven acres. The lease authorized BCHD to spend funds up to $2.5 million to construct recreational facilities on the property. These improvements were completed in Fiscal Year 2000-2001. In Fiscal Year 2002, the City issued variable rate Certificates of Participation to effect a full internal financing of the Sports Fields. The proceeds were used to pay in full all principal and interest obligations under the aforementioned lease with BCHD. In Fiscal Year 2016-17, the City refunded the variable rate Certificates of Participation and issued fixed rate Certificates of Participation to secure lower interest rate payments through the maturity date of 2033. Debt service payments can be found in the Parks & Recreation Administration program budget. Metlox Refunding Certificates of Participation – Parking Fund Maturity Date: January 1, 2032 In January 2003, the City issued Certificates of Participation to pay for public improvements at the Metlox site. These funds were used to construct a two-level underground parking garage as well as a 45,000 square foot town square open space to complement the retail developments. The original amount issued was $13,350,000. In July 2012 and December 2021, with call dates approaching, the City took advantage of lower interest rates by refinancing the outstanding Certificates of Participation. The December 2021 refinancing for the outstanding balance of $5,025,000 resulted in savings of approximately $94,000 per fiscal year through 2032. Water/Wastewater Refunding Certificates of Participation – Water Fund / Sewer Fund Maturity Date: January 1, 2026 The original debt (issued in 1996) was used to finance 1996 and 1997 water and wastewater projects. Since these bonds could be called without penalty, the City issued Certificate of Participation refunding bonds in July 2012 and December 2021 (concurrent with the Metlox refunding bonds) to take advantage of lower interest rates. The December 2021 refinancing for the outstanding balance of $900,000 resulted in savings of approximately $9,950 per fiscal year through 2026. Police/Fire Facility Refunding Certificates of Participation – CIP Fund Maturity Date: January 1, 2032 In February 2013, the City issued $10,510,000 of Certificates of Participation to advance refund the 2004 Police Fire Facility Certificates of Participation. This refunding mirrors that of the Metlox and Water/Wastewater refunding in that the City took advantage of the reduced interest rate environment. This advance refunding reduced debt service payments over 19 years by $3,608,790. The original certificates were issued to complete financing for the January 2007 construction of the Police/Fire/Civic Center. Fire Station No. 2 Certificates of Participation – CIP Fund Maturity Date: January 1, 2051 In August 2021, the City issued $7,440,000 of Certificates of Participation to fund the reconstruction of Fire Station No. 2, which was originally constructed in 1954 and no longer met current standards for seismic retrofitting or operational needs. Future Planned Bonds for 400 Manhattan Beach Boulevard Site – CIP Fund Maturity Date: Estimated on June 30, 2055 In April 2025, the City authorized the acquisition of property located at 400 Manhattan Beach Boulevard (former US Bank building) and appropriated $13,221,000 from the CIP Fund for the purchase and potential demolition of the on-site structure and transferred $13,221,000 from the Unreserved General Fund Balance to the CIP Fund. With a goal of issuing Tax-Exempt Obligations Bonds in the amount of $13,865,000, the proceeds will refund the General Fund for the initial purchase and ancillary costs and the debt service payments will be funded through the CIP Fund. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 416 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 417 Legal Debt Limit The City is subject to a legal general bonded debt limit equal to 3.75 percent of the total assessed value of property in Manhattan Beach. The City’s total net taxable assessed property value is approximately $24.95 billion, resulting in a legal general bonded debt limit of $935,625,000. The City has no general bonded debt subject to the debt limit. ASSESSMENT DISTRICTS Underground Utility Assessment Bonds 2018 Refunding – Special Assessment UUAD 2018 Refunding Maturity Date: September 2, 2026 In fiscal years 2005 and 2006, the City issued 1915 Act Underground Utility Assessment Bonds that financed the undergrounding of overhead utilities in five districts within the City. The two series were refinanced in FY 2017-2018 to take advantage of lower interest rates. The City acts as a conduit between the property owners and the bondholders, and therefore these bonds are not debt of the City. Assessments are placed on property tax bills in order to fund annual debt service. Underground Utility Assessment Bonds 19-12 & 19-14 – Special Assessment UUAD 19-12 & 19-14 Maturity Date: September 2, 2040 In 2019, the City issued 1915 Act Underground Utility Assessment Bonds that financed the undergrounding of overhead utilities in two districts (19-12 & 19-14) within the City. The City acts as a conduit between the property owners and the bondholders, and therefore these bonds are not debt of the City. Assessments are placed on property tax bills in order to fund annual debt service. Underground Utility Assessment Bonds 19-4 – Special Assessment UUAD 19-4 Maturity Date: September 2, 2040 In 2019, the City issued 1915 Act Underground Utility Assessment Bonds that financed the undergrounding of overhead utilities in district 19-4 within the City. The City acts as a conduit between the property owners and the bondholders, and therefore these bonds are not debt of the City. Assessments are placed on property tax bills in order to fund annual debt service. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 418 FY 2026 SCHEDULE OF DEBT SERVICE & LEASE PAYMENTS FY 2026 FY 2026 FY 2026 FY 2026 Principal Interest Total Description Principal Interest Lease Total Remaining Remaining Remaining $3,530,000 $1,988,478 - $5,518,478 $74,170,000 $19,619,702 $93,789,702 370,000 101,300 -471,300 3,000,000 327,450 3,327,450 245,000 6,125 -251,125 - - - 460,000 189,000 -649,000 3,320,000 603,750 3,923,750 620,000 139,063 -759,063 3,735,000 342,563 4,077,563 145,000 255,375 -400,375 6,790,000 3,279,675 10,069,675 City Debt Service General/Enterprise/Internal Service Funds Pension Obligation Bonds General Fund Marine Avenue Sports Field Bonds Water/Wastewater Funds Water/Wastewater Refunding Bonds Parking Fund Metlox Refunding Bonds Capital Improvements Fund Police/Fire Facility Refunding Bonds Fire Station No. 2 Bonds Future Planned Bonds for 400 MBB Site - 627,776 627,776 13,865,000 12,540,125 26,405,125 Subtotal $5,370,000 $3,307,117 - $8,677,117 $104,880,000 $36,713,265 $141,593,265 Assessment Districts Special Assessment Funds Utility Assessment Districts 2018 Ref $500,000 $22,275 - $522,275 $500,000 $7,500 $507,500 Utility Assessment Districts 19-12 & 19-14 420,000 191,006 -611,006 7,410,000 1,606,016 9,016,016 Utility Assessment Districts 19-4 235,000 101,163 -336,163 4,120,000 855,469 4,975,469 Subtotal $1,155,000 $314,444 - $1,469,444 $12,030,000 $2,468,984 $14,498,984 Total Bonded Debt Service $6,525,000 $3,621,561 - $10,146,561 $116,910,000 $39,182,249 $156,092,249 County Parking Lots Fund Operating Leases - County Lots - - $853,437 $853,437 - - - Total Operating Leases - - $853,437 $853,437 - - - Total $6,525,000 $3,621,561 $853,437 $10,999,998 $116,910,000 $39,182,249 $156,092,249 Excludes Administration Costs. Interest calculated on modified accrual basis. CI T Y O F M A N H A T T A N B E A C H | F Y 2 0 2 6 P R O P O S E D B U D G E T Pa g e 4 1 9 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 420 CITY OF MANHATTAN BEACH FINANCIAL POLICIES Approved by City Council on June 3, 2025 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 421 STATEMENT OF PURPOSE The financial integrity of our City government is of utmost importance. To discuss, write, and adopt a set of financial policies is a key element to maintaining this integrity. Our City has developed a variety of financial policies that can be found on the City’s website (www.manhattanbeach.gov). The set of policies within this document, adopted concurrently each year with our budget, serves as a central reference point of the most important of our policies, which are critical to the continued financial health of our local government. Written, adopted financial policies have many benefits, such as assisting the elected officials and staff in the financial management of the City, saving time and effort when discussing financial matters, facilitating financial transparency, and providing continuity over time as elected officials and staff members change. While these policies will be amended periodically, they will provide the foundation and framework for many of the issues and decisions facing the City. They will promote sound financial management and assist in the City’s fiscal stability, efficiency and effectiveness. The Financial Policies are divided into nine general categories for ease of reference. These categories include: 1.General Policies; 2.Accounting, Auditing, and Financial Reporting Policies; 3.Fund Balance Policies; 4.Debt Policies; 5.Revenue Policies; 6.Capital Improvement Policies; 7.Capitalization & Depreciation Policies; 8.Cash Management & Investment Policies; and 9.Operating Budget Policies. The Financial Policies also reference the following City Policies, which are also available on the City’s website at www.manhattanbeach.gov/FinancialPolicies: Budget Policy Debt Management and Disclosure Policy Investment Policy Pension Policy 1 - GENERAL POLICIES The City will: manage its financial assets in a sound and prudent manner; maintain and further develop programs to ensure its long-term ability to pay all costs necessary to provide the level and quality of service required by its citizens; implement performance measurements as part of an ongoing effort to ensure high-quality and efficient services; establish and maintain appropriate cash reserves; establish and maintain investment policies that are in accordance with State laws; and maintain long-term fiscal sustainability through conservative forecasting and proactive efforts to achieve structurally balanced operating budgets where recurring revenues equal or exceed recurring expenditures. 2 - ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICIES FINANCIAL INFORMATION It is the policy of the City of Manhattan Beach to provide all financial information in a thorough and timely fashion, and in a format that is easy for City Council, residents, and staff to understand and utilize. ACCOUNTING STANDARDS The City's accounting of financial systems shall be maintained in accordance with Generally Accepted Accounting Principles (GAAP), standards of the Governmental Accounting Standards Board (GASB), and the Government Finance Officers Association (GFOA). ANNUAL AUDIT An independent public accounting firm will perform an annual audit and its opinions will be included in the Annual Comprehensive Financial Report. The independent audit firm will be reviewed and selected at least once every five years. The contract will be for a period of no more than five years. The Finance Subcommittee, City Manager and Finance Director will review the qualifications of prospective firms and make a recommendation to the City Council. The audit contract will be awarded by the City Council. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 422 An Annual Comprehensive Financial Report (ACFR) shall be prepared after the close of the previous fiscal year. It will be reviewed with the Finance Subcommittee, and presented to the City Council and community at a public meeting no later than February 28 of the following year. At the end of each fiscal year, and with the presentation of the Annual Comprehensive Financial Report to City Council, the Finance Director may recommend the transfer of additional General Fund surplus funds to the Section 115 Trust for future pension liability payments. It is the City’s goal to maintain accounting records, processes and procedures in such a manner as to receive an unmodified audit opinion and to maintain a Certificate of Achievement for Excellence in Financial Reporting from the GFOA. 3 - FUND BALANCE POLICIES The City utilizes a variety of accounting funds for recording revenues and expenditures. Fund balance is defined as the difference between the assets and liabilities within a fund. At each fiscal year-end, budgeted/appropriated expenditure authority lapses with the exception of capital and grant project spending, and operating expenses that have been incurred but not paid (encumbered). The remaining dollars left in each fund that are Unassigned constitute available funds of the City. The Unassigned fund balance shall include the City’s Financial Policy components. The City Council authorizes the City Manager or Finance Director to make assignment of funds. Where City Council has not established a formal policy, the Governmental Accounting Standards Board Statement 54 will be operative. GENERAL FUND The General Fund shall maintain a Policy Reserve in an amount equal to at least 20 percent of the annual General Fund core expenditure budget, excluding one-time capital purchases. These funds are designed to be used in the event of significant financial emergency. City Council may, at its discretion, set aside additional policy reserve funds above the 20% minimum. The City currently has funds set aside in an Economic Uncertainty reserve to be used at City Council’s discretion. Additional amounts may be allocated for specific purposes, and any residual balance from these commitments shall be returned to the General Fund. ENTERPRISE FUNDS The City’s Enterprise Funds (Water, Storm Drain, Sewer, Parking, County Parking Lots, and Pier) will maintain reserves equal to four months or 33% of operating expenses. If reserves in any Enterprise Fund are anticipated to be less than this policy, then it shall be noted in the City’s Budget document and a plan will be developed by Finance staff to address the reserve level. FLEET MANAGEMENT FUND Using the Fleet Management Fund, the City will annually budget sufficient funds to provide for the orderly maintenance, repair and replacement of the City’s vehicles. This Fund is supported by charges to user departments, which are adjusted annually, based on the department’s proportionate share of estimated fleet management expenses. Sufficient working capital will be maintained in the fund to provide for the scheduled replacement of fleet vehicles at the end of their useful lives. INFORMATION TECHNOLOGY FUND Using the Information Technology Fund, the City will annually budget sufficient funds to provide for the orderly maintenance, repair and replacement of the City’s technology infrastructure. This Fund is supported by charges to user departments, which are adjusted annually, based on departments’ proportionate share of estimated expenses. Such share may be determined based upon the departments’ number of devices supported by the Information Technology Department. Sufficient reserves will be maintained in the Fund for department operations and equipment replacements as appropriate. INSURANCE RESERVE FUND The City maintains a self-insurance fund for property, liability, and workers’ compensation expenses. This fund pays insurance premiums, benefit and settlement payments up to the Self-Insured Retention (SIR), and administrative and operating expenses. The Insurance Reserve Fund is supported by charges to other City funds for the services it provides. These annual charges for service shall be established to approximately equal the annual expenses of the fund, plus any additional charges to maintain reserves. Reserves shall be maintained for current and long-term general liability and workers’ compensation liability. Current liability is determined monthly by analyzing the current case reserves and determining the amount the City is liable for up to the SIR. The long-term liability reserves shall be at 50% of the Incurred But Not Reported (IBNR) as determined by a biennial actuarial report. If the reserves fall below policy, then Finance staff will develop a long-term plan to raise reserves up to the policy. TRUST AND AGENCY FUNDS The City maintains funds on a trustee basis for a number of purposes. These funds shall be segregated from the City’s general funds. Other Post-Employment Benefits (OPEB): This fund was established to track payments for post-employment benefits. The City has a retiree medical program that pays a portion of the employee’s medical costs if certain criteria are met. Additionally, the City also funds CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 423 ongoing PEMHCA contributions. These OPEB benefits are reimbursed with funds held by the California Employees’ Retirement Benefit Trust (CERBT) administered by CalPERS. Section 115 Trust: The purpose of this account is to track the funds deposited in the City’s Section 115 Trust and pension liability payments. This Trust is used to prefund future pension costs and address pension liabilities. Utility Underground Assessment District (UUAD) Projects: When a UUAD is formed, the City establishes an account to track the bond proceeds and expenditures for each project. Additionally, revenues from direct assessments are deposited into these accounts and later used to pay debt service payments on bonds as well as other administrative fees. 4 - DEBT POLICIES ISSUANCE OF DEBT The City will not use long-term debt to pay for current operations. A Debt Management and Disclosure Policy was adopted by the City Council in 2018 to establish guidelines and parameters for the effective governance, management and administration of debt. The use of bonds or certificates of participation will only be considered for significant capital and infrastructure improvements. The term of the debt shall not extend beyond the useful life of the improvements to be financed. The use of pension obligation bonds (POBs) may be used to extinguish accrued actuarial pension liabilities if market conditions prove the debt issuance to be advantageous to the City’s long-term fiscal sustainability. Issuance of POBs and payments will be in accordance with the Unfunded Pension Liability Policy originally adopted by the City Council in 2021 to provide guidance on the development and adoption of funding plans for the City’s defined benefit pension plans. CREDIT RATING It is the City’s goal to maintain our AAA credit rating from one or more rating agencies. The factors that contribute to our high rating include the City’s strong financial management, low debt levels, budgetary and fiscal controls, and accountability. To support this policy, the City will continue to maintain its position of full financial disclosure and proactive fiscal planning. LEASE-PURCHASE The City may lease-purchase equipment if necessary because of funding availability, or if lease rates are more favorable than the rate attained from investment return. Equipment may also be leased if the lease terms compare favorably when reviewing the total life cycle cost of the equipment. In no case shall the City lease-purchase equipment with a useful life less than the term of the lease. 5 - REVENUE POLICIES GENERAL FUND REVENUE The City will strive to develop and maintain diversified and reliable revenue streams to avoid becoming overly dependent on any single type of revenue. Efforts will be directed to optimize existing revenue sources while periodically reviewing potential new revenue sources. Budgeted revenues will be estimated conservatively using accepted standards and estimates provided by the State, other governmental agencies or reliable economic forecasters when available. If revenues from “one-time” or limited duration sources are used to balance the City’s annual operating budget, it is to be fully disclosed and explained at the time the budget is presented. It is the City’s goal to not rely on these types of revenues to balance the operating budget. The City will pursue revenue collection and auditing to assure that funds due to the City are accurately received in a timely manner. The City will seek reimbursement for State and Federal mandated costs whenever possible. GRANTS The City shall actively pursue Federal, State and other grant opportunities when deemed appropriate. Before accepting any grant, the City shall thoroughly consider the implications in terms of ongoing obligations that will be required in connection with acceptance of said grant. ENTERPRISE FUND CHARGES The City will set user fees for each enterprise fund at a rate that fully covers direct and indirect costs of providing the service, as well as planned capital improvements. PARKS AND RECREATION FEES All Parks and Recreation department expenses and revenues will flow through the General Fund (except those transactions related to Proposition “A” transit funds). The goal of the Parks and Recreation Department shall be to generate General Fund revenue equal to at least 35 percent of the total General Fund expenditures of the department. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 424 Recreation fees for such activities as classes and room rentals shall be established and reviewed periodically. The purpose of these fees is to recover the direct cost of the program, and to generate additional revenues to support the overall operation of the Parks and Recreation department and programs. As appropriate within the marketing of the recreation programs, higher non-resident fees are charged, as well as priority registration procedures for Manhattan Beach residents. COST RECOVERY FEES A user fee is a cost recovery charge for a service provided by a governmental agency to a public citizen or group. In accordance with State laws and government codes, such fees will recover the cost of providing the service, including all direct and indirect costs, administrative overhead, depreciation, etc. The City conducts a user fee study and comprehensive cost allocation plan (CAP) to determine reasonable amounts to charge. The fees are reviewed periodically, but not less than every four years, to ensure that full cost recovery levels are identified and aligned with current salary and benefit rates as approved in employee labor group agreements. By policy, City Council may direct certain fees to be lowered for particular purposes. Waivers of user fees will be presented for City Council approval as appropriate. The CAP study also determines appropriate administrative charge-outs for the support each fund receives from other funds. Additionally, engineering support is charged out directly by determining the amount of time each engineer works on a specific project or program. Fees such as parking meter rates, fines, facility rentals, recreation class fees, etc. are based upon market conditions and are not subject to the limitations of cost recovery. These fees may be adjusted periodically by the City Council. 6 - CAPITAL IMPROVEMENT POLICIES DEDICATED CIP FUNDING SOURCES Most of the City’s infrastructure has a designated revenue source to pay for its upgrade or replacement as appropriate. For example, water/sewer rates fund utility infrastructure needs; gas tax revenues fund street needs; and storm drainage needs are paid for with related fees and assessments. However, our public buildings and our park system are the primary beneficiaries of the City’s Capital Improvement Fund (CIP). Specific revenue sources have been designated to provide permanent funding in support of general operational infrastructure. In particular, the City has dedicated: 15% of the base (10%) hotel, motel and short-term rental transient occupancy tax; and Annually, up to $5 million of General Fund revenues or as otherwise set by City Council for any given fiscal year. Transfers into the CIP Fund will be processed by the Finance Department on a monthly basis and recorded as such in the annual adopted budget. FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP) The City shall annually prepare a capital improvement spending program that projects capital needs for a five-year period. This CIP shall address all of the City’s funds. The first year of the Five-Year CIP will be consistent with, and adopted as a component of, the annual operating budget. In the development of the Capital Improvement Program, operating costs associated with capital projects will be estimated and considered in conjunction with the CIP and operating budget as appropriate. ENTERPRISE FUND CAPITAL IMPROVEMENTS Capital Improvements funded from the Enterprise Funds shall be paid for in combination of "pay-as-you-go" financing and the use of long-term debt. The City shall periodically review its enterprise capital needs and establish capital spending plans that are appropriate and reflect a combination of debt and "pay-as-you-go," while attempting to keep our rates competitive with those in the surrounding area. 7 - CAPITALIZATION & DEPRECIATION POLICIES The City shall capitalize equipment and facilities within the following parameters: Fixed Asset Equipment - $10,000 or more per unit* Leased Asset and Subscription - $25,000 or more* Capital Projects - $100,000 or more Minor equipment that falls below the $10,000 threshold, but is subject to shrinkage, such as cellular telephones and computers, shall have a non-numbered City of Manhattan Beach property tag affixed when placed into City service. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 425 The City shall depreciate capital assets such as machinery, equipment, buildings and improvements, and infrastructure (roads, sidewalks, parks, etc.). Depreciation shall be performed on a straight-line basis over the expected useful life of the asset and in accordance with Generally Accepted Accounting Principles (GAAP). *The fixed asset thresholds were last updated at the March 31, 2025 Finance Subcommittee meeting. The Finance Subcommittee & City Council shall annually review and update, or modify as appropriate, the City’s Investment Policy. The Policy s recommendations. BALANCED OPERATING BUDGET The Budget Policies are reviewed and adopted annually to provide guiding budget principles encompassing the development, implementation, and evaluation of a spending plan for the provision of services and capital assets. It is the City’s policy to adopt a balanced budget where operating revenues are equal to, or exceed, operating expenditures. In the event a balanced budget is not attainable, and the cause of the imbalance is expected to last for no more than one year, the planned use of reserves to balance the budget or make one-time purchases is permitted. In the event that a budget shortfall is expected to continue beyond one year, the planned use of reserves must be developed as part of a corresponding strategic financial plan to close the gap through revenue increases or expenditure decreases. Any year-end operating surpluses will revert to unassigned fund balances for use in maintaining reserve levels set by policy and will be available for capital projects and/or "one-time only" General Fund expenditures. BUDGET DOCUMENT The operating budget shall serve as the financial plan for the City. It will serve as the policy document of the City Council for implementing its goals and objectives. The budget shall also provide the resources necessary to accomplish City Council determined service levels. The City Manager shall annually prepare and present a proposed operating budget to the City Council no later than the second regular City Council meeting in May of each year; and City Council will adopt the budget no later than June 30 of each year. Funds may not be expended or encumbered in the following fiscal year until the budget has been adopted by the City Council. The City’s budget document will be presented by department, with a logical breakdown of programs and proposed expenditures. The purpose of this format is to clearly outline the major service areas and associated expenditures. The budget document will also summarize expenditures at the personnel, operating and maintenance, and capital levels. The City’s budget document will include budgetary goals and performance measures to describe the workload of each department as well as track departments’ efficiency and effectiveness in providing desired service levels. BUDGET CONTROL AND ACCOUNTABILITY Budget control is maintained at the departmental level. The City Manager has the authority to approve appropriation transfers between programs or departments. In no case may total expenditures of a particular fund exceed that which is appropriated by the City Council without a budget amendment. Amendments to the budget are approved by the City Council with the exception of unexpended appropriations from the prior fiscal year may be carried forward to the next fiscal year provided the funds have been previously encumbered for a specific purpose, or apply to authorized, but uncompleted, projects in the adopted Capital Improvement Plan. Such amendments may be approved by the City Manager. Budget accountability rests primarily with the operating departments of the City. BUDGET REPORTING Quarterly reports showing budgeted and actual revenues and expenditures will be prepared and provided to the City Council. Additionally, department staff have access to the City’s financial system and receive monthly year-to-date budget and actual expenditure reports. *Updated as of June 3, 2025 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 426 BUDGET POLICIES GENERAL BUDGET POLICY The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets. The mission of the budget process is to help the City Council make informed choices about the provision of those services and capital assets, and to promote stakeholder participation in the process. According to the National Advisory Council on State and Local Budgeting, the budget process: Incorporates a long-term perspective, including long range forecasting; Establishes linkages to broad organizational goals; Focuses budget decisions on results and outcomes; Involves and promotes effective communication with stakeholders; and Provides guidance to government management and employees. In addition to these key characteristics, the City has Financial Policies (located in the Appendix of the Budget), and general Budget Policies which are the basis on which staff develops budget recommendations and establishes funding priorities within the limited resources the City has available to provide municipal services. These Budget Policies are as follows: 1.Overall Budget Principles a.The budget shall be a performance, financing, and spending plan adopted by the City Council. It will contain information and data regarding expected revenues and expenditures, as well as goals and performance metrics. b.The Finance Director shall prepare and present a budget preparation calendar to City Council by the end of January each year. The calendar will include review dates as well as City Council budget study session dates. c.The City Manager prepares and refines written policies and goals to guide the preparation of performance, financing and spending plans for the City’s Budget. Adopted budgets will comply with the adopted policies and City Council priorities. d.The City’s budget presentation shall display the City’s plan in a Council Constituent-friendly format. The City will use a program budgeting format to convey the purposes and goals of the City operations. The City will also prepare and post on its website the line item detail for those who wish to review that information. e.Decision making for capital improvements will be coordinated with the operating budget to make effective use of the City’s limited resources for operating and maintaining facilities. f.The City Manager has primary responsibility for formulating budget proposals in line with City Council priority directions, and implementing those proposals once they are approved. g.The budget will be developed with an understanding of what the City is required to do versus what it has chosen to do. h.Consideration shall be given to alternative service delivery options and opportunities to innovate. a.Staff will pursue the streamlining of processes and reduction of costs wherever possible. j.The City shall actively pursue federal, state and other grant opportunities when deemed appropriate. k.Total compensation will be considered when negotiating/setting employee salaries and benefits. ax. Staffing will be set at a level appropriate to the service needs of the community. Authorized positions, as approved by the City Council, are included in the Budget. The City Manager may approve short-term (less than one fiscal year) over-hires for authorized positions based on organizational needs, provided that budgetary savings are available within the requesting department. 2.Fiscal Integrity a.Ongoing operating expenditure budgets will not exceed the amount of ongoing revenue budgets. New program requests will identify either a new ongoing source of revenue or identify offsetting/ongoing expenditures to be eliminated. b.Any year end operating surpluses will revert to unappropriated balances for use in maintaining reserve levels set by policy and will be available for capital projects and/or “one-time only” expenditures. c.The City will maintain the fiscal integrity of its operating and capital improvement budgets which provide services and maintain certain public facilities, streets and utilities. It is the City’s intent to maximize the level of public goods and services while minimizing the level of debt. d.The City will maintain a structurally balanced operating budget which is defined as projected on-going (core) revenues equal to or in excess of planned expenditures, excluding approved one-time capital purchases. e.Prior year budgetary savings resulting from vacant full-time positions (“vacancy savings”) will be analyzed with each budget cycle. Vacancy savings may be included in the operating budget provided the offset aligns with the City’s prudent budgeting approach and vacancy trends. f.Restricted funds and non-General Fund moneys shall be utilized first when appropriate. g.One time resources shall not be used for on-going expenses. h.Long term debt shall not be utilized to fund on-going operations. a.Adequate reserves shall be maintained and enhanced, and reviewed annually by the City Council through the budget process. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 427 3.Revenues a.Budgeted revenues will be estimated conservatively using accepted standards and estimates provided by the state, other governmental agencies or reliable economic forecasters when available. b.Generally, revenue estimates shall not assume growth rates in excess of inflation and scheduled rate increases. c.If revenues from “one-time” or limited duration sources are used to balance the City’s annual operating budget, it is to be fully disclosed and explained at the time the budget is presented. It is the City’s goal to not rely on these types of revenues to balance the operating budget. 4.Funding Non-Current Liabilities a.Maintenance and Replacement funding will be prioritized each year to ensure that capital facilities and equipment are sufficiently maintained to avoid service disruptions and minimize future costs. A schedule of equipment replacements will be maintained and included in the five year projections. b.The City obtains Valuation Reports containing actuarially determined contributions (ADC) for the purpose of funding the long-term costs of benefits provided to employees and annuitants through Pension and Other Post-Employment Benefits (OPEB) plans. The ADC includes the “Normal Cost” for current service and Amortization of any under-funded amount. The City will review all Valuation Reports to validate the completeness and accuracy of the member census data and the reasonableness of the actuarial assumptions. i.Pension and OPEB costs will be budgeted no less than the full amount of the ADC, including the Normal Cost (as a percent of current payroll) and Amortization to collect any under-funded amount. ii.The funding status of the City’s Pension and OPEB plans will be presented during annual budget presentations to assist the City Council in resource allocation decisions. In addition to the ADC, additional funds (e.g. budgetary surpluses or unanticipated one-time revenues) may also be allocated toward the City’s unfunded liabilities to accelerate the payoff. 5.Internal Service Charges The City will utilize Internal Service Funds to allocate costs incurred across multiple departments, including fleet, technology, insurance costs including workers compensation and liability, and building maintenance and operational costs. a.Fleet Management Fund i.Through the use of the Fleet Management Fund, the City will annually budget sufficient funds to provide for the orderly maintenance, repair and replacement of the City’s vehicles. This fund is supported by charges to user departments which are adjusted annually based on the department’s proportionate share of estimated fleet management expenses. Sufficient working capital will be maintained in the fund to provide for the scheduled replacement of fleet vehicles at the end of their useful lives. ii.In order to maintain an optimal working fleet and minimize repair costs, it is the City’s intent to follow the established vehicle replacement schedule. b.Information Technology Fund i.Through the use of the Information Technology Fund, the City will annually budget sufficient funds to provide for the orderly maintenance, repair and replacement of the City’s technology infrastructure. This fund is supported by charges to user departments which are adjusted annually based on departments’ proportionate share of estimated expenses. Such share may be determined based upon the departments’ number of devices supported by the IT Department. c.Insurance Reserve Fund i.The City maintains a self-insurance fund for the purpose of property, liability, and workers’ compensation expenses. This fund pays insurance premiums, benefit and settlement payments, and administrative and operating expenses. ii.The Insurance Reserve Fund is supported by charges to other City funds for the services it provides. These annual charges for service shall reflect historical experience and shall be established to approximately equal the annual expenses of the fund. iii.Separate reserves shall be maintained for current and long term general liability and workers’ compensation liability at a level which will adequately fund the City’s potential loss exposure in each area as determined by historical loss data. iv.The Insurance Reserve Fund shall maintain an annual working capital balance of $2 million. 6.Reporting a.A revenue/expenditure report will be produced monthly so that it can be directly compared to the actual results of the fiscal year to date. b.At mid-year, staff will produce a Budget Status Report reflecting financial performance and present the data to City Council. c.With the presentation of the proposed budget, staff will provide revenue and expenditure projections for the next five years for all funds. Projections will include estimated operating costs for future capital improvements that are included in the capital budget (See the Capital Improvement Plan). This data will be presented to the City Council in a form to facilitate annual budget decisions, based on a multi-year strategic planning perspective. d.The City will also monitor progress toward citywide strategic objectives through performance measures. The measures will illustrate trends, targets, and other criteria by which the City’s efforts on a given program can be evaluated on a periodic basis. This evaluation is intended to inform organizational learning and assist policymakers in decision-making. CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 428 7.Civic Engagement a.Citizen involvement during the budget process shall be encouraged through community meetings, study sessions, and public hearings. b.Social media, the City website, periodic resident surveys and other such tools shall be utilized. c.City Council budget study sessions shall be broadcast live to make available real-time information on the budget to those not able to attend in person. 8.Capital Budget – Fiscal Policies a.Capital project proposals shall include substantially complete, reliable and attainable cost estimates. Project cost estimates for the Capital Budget should be based upon a preliminary analysis of the project and are expected to be as reliable as the level of detail known about the project. b.Proposals shall include a comprehensive project sheet. The project sheet shall include a detailed description of the scope of the project, approximate schedule, and proposed funding plan. The plan should indicate resources necessary to complete any given phase of the project, e.g., design, rights-of-way acquisition, construction, project management, contingency, etc. c.All proposals for capital projects will be presented to the City Council within the framework of a Capital Budget. Consideration will be given to the commitment of capital funds outside the presentation of the annual capital budget review process for emergency capital projects, time sensitive projects, projects funded through grants or other non-city funding sources and for projects that present and answer the following questions for Council consideration: 1) Impacts to other projects, and 2) Funding sources. d.Capital project proposals shall include all reasonably attainable cost estimates for operating and maintenance costs necessary for the life cycle of the asset. e.Major changes in project cost must be presented to the City Council for review and approval. These changes are typically reviewed by City Council as part of the CIP budget process or through specific recommended actions for individual projects. f.Staff shall seek ways of ensuring administrative costs of implementing the Capital Budget are kept at appropriate levels. g.The Capital Budget shall contain only those projects that can by reasonably expected to be accomplished during the budget period, unless the project is a multi-year funded project. The detail sheet for each project shall contain a project schedule with milestones indicated. h.Capital projects that are not expensed during the budget period will be re-budgeted or carried over to the next fiscal period except as reported to the City Council for its approval. Multi-year projects with unexpended funds will be carried over to the next fiscal period. a.A capital project will not be budgeted unless there is a reasonable expectation that funding is available. j.Whenever feasible, practical and allowable, salaries and benefits for Public Works Engineers will be charged against enterprise, special revenue or grant funds utilized for the design and construction of capital projects. *As Adopted on October 15, 2019 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 429 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 430 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 431 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 432 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 433 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 434 APPROPRIATIONS LIMIT CALCULATION Article XIIIB of the California State Constitution, commonly referred to as the Gann Initiative or Gann Appropriations Limit, was adopted by California voters in 1980 and placed limits on the amount of proceeds of taxes that State and local agencies can appropriate and spend each year. The limit is different for every agency and changes each year. The annual limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79, modified for changes in inflation and population. Inflationary adjustments are based on increases in the California per capita income or the increase in non-residential assessed valuation due to new construction. An adjustment is also made based on changes in Manhattan Beach’s population or County population. For fiscal year 2026, the estimated tax proceeds appropriated by the Manhattan Beach City Council are under the Limit. The adjusted Appropriation Limit for fiscal year 2026 is $109,934,879. This amount is the maximum amount of tax proceeds the City is able to appropriate and spend in fiscal year 2025-2026. The appropriations subject to the Limit are $82,375,604, leaving the City with an appropriations capacity of $27,559,275. Section 7910 of the State Government Code requires a governing body to annually adopt, by resolution, an Appropriations Limit for the upcoming fiscal year. SPENDING LIMIT CALCULATION - FISCAL YEAR 2026 Appropriations subject to limit Plus: User fees in excess of costs - Total appropriations subject to limit $82,375,604 Appropriation limit A. Population adjustment (Based on change in City/County population)1.003000 B. Change in per capita income 1.064400 Total Annual Adjustment = (A multiplied by B) 1.067593 Fiscal Year 2026 appropriation limit $109,934,879 $82,375,604 Available capacity as a percent of appropriation limit 25.07% CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 435 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 436 A transfer of moneys to the General Fund to reimburse the General Fund for work performed in other funds by an employee whose salary is budgeted in the General Fund. Legal authorization by the City Council to make expenditures and to incur obligations for specific purposes. Article XIIIB, of the California Constitution, was amended by Proposition 4, "The Gann Initiative," in 1979. This Article limits , by the percentage change in the The base year limit (FY 1978-1979) amount consists of all tax proceeds appropriated in that year. The Appropriations Appendix of the Adopted Budget. American Rescue Plan Act A dollar value placed upon real estate or other property, by Los Angeles County, as a basis for levying property taxes. Fund balance of a fund, from the end of the prior year, including both available, designated and restricted reserves . Business Improvement Districts A city may raise capital by issuing a written promise to pay a specified sum of money called the face value, or principal amount, at a The financial plan for the operation of a program or organization that includes an estimate of proposed expenditures for a given period A general outline of the budget which includes comments regarding the City’s financial status at the time of the message, and A financial plan of proposed capital improvement projects. CIP projects typically improve City owned assets . A budget category which budgets major equipment purchases and capital improvement projects. Improvements costing $10,000 or more, that have a useful life of one year or more, and selected studies costing in excess of Capital Improvement Project/Capital Improvement Plan/Capital Improvement Program. Annual principal and interest payments owed on money has borrowed. An organizational unit comprised of divisions, or programs. The City of Manhattan Beach has nine departments: Management orks and Information Technology. A program, or activity, within a department, which furthers the objectives of the City Council by providing services, or a product. Financial commitments related to unperformed contracts for goods, or services, for which part of an appropriation is reserved. Funds established to account for the total costs of those governmental facilities and services that are operated in a manner These programs are entirely, or predominately, self-supporting. The cost of goods received or services rendered for the government unit. A 12-month period of time to which an annual operating budget applies. The City of Manhattan Beach’s fiscal year is July 1 through CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 437 A self-balancing set of accounts. Governmental accounting information is organized into funds, each with separate revenues, There are four major types of funds: General, Proprietary, Special Revenue, and Trust & Agency. The difference between a fund’s assets and its liabilities. Portions of the fund balance may be reserved for various purposes, Generally Accepted Accounting Principles Governmental Accounting Standards Board The primary fund of the City, used to account for all revenues and expenditures of the City not legally required to be accounted Government Finance Officers Association Contributions, or gifts of cash, or other assets from another entity. Grants are typically to be used, or expended for a specific purpose. Heating, Ventilation & Air Conditioning The underlying foundation or basic framework of a system or organization, such as the roads, sewers, and storm drains, etc. A charge to departments’ budgets designed to provide the operation, maintenance and replacement of some shared The City of Manhattan Beach uses internal service charges to provide for its City-wide computer network, operation and The City of Manhattan Beach operates four internal service funds: Insurance Reserve; Information Systems; Fleet Refers to any individual expenditure object or appropriation detailed in the department’s budget. This budget category accounts for all non-personnel, and non-capital expenses. Such expenditures include building fice supplies, and utility costs. Metropolitan Transportation Authority The collection of City Council approved ordinances currently in effect. The Municipal Code defines City policy in various fic regulations). The financial plan for the operation of a program or organization that includes an estimate of proposed expenditures for a A formal legislative enactment by the City Council. An ordinance has the full force and effect of law within the City boundaries, , such as a State statute or constitutional provision. An ordinance has a higher legal standing An authorized position without moneys budgeted for salary and fringe benefits. The overhire concept assumes that a department , and that the salary and fringe benefit savings from f-set the cost of the overhire personnel. The overhire personnel in-turn ensures that the department will not be forced to fing shortages and can better control overtime expenditures. A taxable bond that is issued to pay for the unfunded portion of the City’s pension liabilities. Indicators used in budgets to show, for example, the amount of work accomplished, the efficiency with which tasks are fectiveness of a program. Pension Obligation Bond. A taxable bond that is issued to pay for the unfunded portion of the City’s pension liabilities. An activity, or division, within a department, which furthers the objectives of the City Council, by providing services or a product. South Bay Regional Public Communications Authority (SBRPCA) CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 438 Used to earmark a portion of the fund balance as segregated for a specific use. A special order of the City Council, which requires less legal formality than an ordinance in terms of public notice and the number of A resolution has lower legal standing than an ordinance. The Operating Budget is approved by resolution, and A budget category, which accounts for full-time and part-time employees, overtime expenses, and fringe benefits. Indicators used in budgets to show, for example, the amount of work accomplished, the efficiency with which tasks are fectiveness of a program. Funds used to account for proceeds of specific revenue sources that are legally restricted to expenditures for specified Transient Occupancy Tax Moneys appropriated from one fund to another, in order to reimburse the fund for expenses, or to finance the operation of the other Transfers between a Proprietary Fund and a Governmental Fund are budgeted as revenues and expenditures in the various funds, to A classification of funds, which temporarily holds cash for other agencies or legal entities. Utility Underground Assessment District Utility User Tax CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 439 CITY OF MANHATTAN BEACH | FY 2026 ADOPTED BUDGET Page 440 CITY OF MANHATTAN BEACH 1400 HIGHLAND AVENUE MANHATTAN BEACH, CA 90266 www.manhattanbeach.gov