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Seal Beach presents balanced FY25-26 proposed budget, highlights Measure GG revenue and reserves
Summary
City staff presented a proposed FY25-26 budget that staff and officials described as balanced, noting Measure GG will add $3 million in sales-tax revenue and the city will maintain a 25% general fund reserve target amid rising mandatory costs.
Seal Beach officials presented the proposed fiscal year 2025–26 budget at a May 6 budget workshop, saying the plan is balanced and relies in part on revenue generated by Measure GG.
Interim City Manager Gallegos and Finance Director Barbara Arenado led the presentation, saying the city’s total budget across all funds is about $82.8 million in revenues and $108.8 million in expenditures, with capital projects of roughly $27.4 million. They said general fund operating revenues are projected at $48.2 million, a 9.4% increase year over year, and operating expenditures are $48.1 million, an 8.2% increase.
The nut graf: the budget relies on $3 million in sales-tax revenue from Measure GG, which staff said stabilizes finances but does not eliminate structural cost pressures driven by pension contributions, insurance, and contracted services.
Arenado called the document “a testament to teamwork” and said Measure GG contributed $3,000,000 to sales-tax revenue. The presentation listed principal budget drivers as CalPERS contribution increases, insurance, and the Orange County Fire Authority contract. Staff proposed setting aside $1.5 million for an economic reserve, allocating $300,000 to a fleet fund, and an additional $250,000 for CalPERS supplemental pension payments aimed at reducing long‑term liabilities.
During question-and-answer, Council members sought detail on the OCFA increase (see separate article). Staff repeated that the city remains constrained by structural cost increases despite new revenue and noted last year’s $6 million in cuts; Measure GG offset about half of that gap, staff said.
The finance team outlined nonoperating items and fee adjustments: staff said an annual CPI-aligned update to fees would be applied per an existing city resolution and that minor clarifications to the fee schedule were included in the proposed budget. Director Arenado said the city’s policy target of maintaining reserves equal to 25% of annual operating expenditures remains in place to preserve liquidity and credit rating strength.
Less urgent details: staff listed department-level accomplishments that informed the budget, including public-safety incident counts, community facility renovations, and grants for senior transportation and coastal planning. The city will continue department presentations and take public questions at a second workshop scheduled for May 8, when the capital improvement program and five-year forecast will be discussed.
Officials stressed this was a workshop presentation and not a formal adoption; the council will consider budget adoption at later hearings and staff said they will return on Thursday, May 8, with follow-up and clarifications.
