The Redondo Beach Budget and Finance Commission voted to add quarterly revenue updates and a review of planned capital improvement projects to its next meeting agenda after commissioners and members of the public raised concerns about the city’s use of CalPERS reserve funds to balance the current budget.

Commissioner Jesse led the discussion about budget gaps and reserves, saying the use of pension reserves to balance the budget was “1 of the most irresponsible things that we can do.” Finance Director Stephanie explained the council had approved a one-time use of the city’s CalPERS reserve to bridge a near-term shortfall and described the year as “somewhat of a bridge year.”

Why it matters: Commissioners said more timely financial detail would let them and council see whether projected revenues such as transient occupancy tax and sales tax are tracking as expected and identify candidate projects to defer if revenues fall short. The commission agreed to ask staff to provide quarterly reports that compare current-year actuals to the same quarter in the prior fiscal year and to include columns for projections and remaining budget.

Key facts and discussion:
- Commissioner Jesse and other commissioners pushed for more frequent, detailed reporting rather than waiting for a midyear review. Commissioners asked that reports include department-level expenditures and trend lines for volatile revenues such as transient occupancy tax.
- Finance Director Stephanie said the city used a CalPERS reserve fund set aside for pension payments as a one-time bridging source and said officials are watching revenues closely; she said if revenues weaken staff may recommend cuts to the council.
- Commissioners discussed developing lists of capital projects and other items that could be deferred if revenues underperform; several commissioners volunteered to identify candidate items for discussion at the next meeting.
- Public commenters Jim Miller and Eugene Solomon urged the commission to restore earlier agenda items about the city’s homeless program sources-and-uses analysis and to review procurement procedures for professional services.

Action and next steps: Commissioners voted to place the quarterly reporting format, a capital improvement projects review, and the procurement/professional-services review on the next meeting agenda. The commission also agreed informally that each commissioner would review specific projects to flag possible deferrals if revenues decline.

Context: Commissioners emphasized that the commission’s role is advisory; the city manager proposes the budget and the City Council ultimately sets spending. The finance director said the midyear review is where staff would recommend specific actions if revenues continue to lag.

Ending: Staff will prepare the detailed quarterly report and the requested capital and procurement materials for the commission’s next meeting so commissioners can decide whether to refer recommendations to the City Council.