Council discusses budget resiliency, contingency and lifeguard pay and headquarters funding

City staff presented a budget update and answered council questions about contingency planning, long‑term outlook and funding priorities, including lifeguard facilities and pay.

Finance director Barbara Arnaldo (presented in transcript as Aronado/Barbara) told council the city budget is balanced for the coming year but relies on revenue projections that can shift. She described a contingency approach: the city maintains a contingency reserve equal to about 25 percent of operating (cited by staff as roughly $12 million) and said staff monitors sales tax and other revenues monthly. “We would implement immediately freezing positions, freezing nonessential purchases, moving out CIP projects, and then utilize that funding if necessary,” Arnaldo said, describing a course of action for a sudden downturn.

Council members pressed on the five‑year outlook, pension and insurance cost pressures and the need to increase recurring revenues to keep pace with inflation and service demands. Staff said they were pursuing options including phased construction, grants, and exploring bonding or other financing for large capital projects.

Public comment included a presentation by Alex Parton of the Seal Beach Lifeguard Association, who urged higher pay for part‑time ocean lifeguards and said starting pay had risen from $15 in 2004 to about $19.08 in 2025 and remained below neighboring jurisdictions. “We respectfully urge you to please consider prioritizing a wage adjustment for our part time lifeguards,” Parton said.

Councilmembers and staff discussed the lifeguard headquarters and police substation project; staff said they would return with assessments and phased design options and outlined possible fundraising and grant strategies. Council indicated support for advancing design work and studying financing options rather than waiting until full capital is available.