Redondo Beach council adopts FY 2025–26 budget; shifts $3.5M from pension reserve, approves fee updates

The Redondo Beach City Council adopted its fiscal year 2025–26 budget and five-year capital improvement program after a daylong public review and deliberations.

City Manager Watsanski and finance staff summarized the plan, telling the council it contains roughly $42,000–$43,000 in unallocated general fund balance and that staff proposes a $3.5 million transfer from the city's pension reserve to cover part of the CalPERS unfunded accrued liability (UAL). The capital improvement plan totals about $94 million, of which roughly $30 million is new funding largely from competitive grants.

Council members debated a long list of decision packages and budget response reports. Staff said the proposed budget is conservative on revenue and includes 52 decision packages; most new staffing requests are offset by third‑party funding, reorganization savings, or are one-time items. The council discussed potential cuts or holds to items that would add ongoing general fund commitments if the city's fiscal outlook worsens.

After amendments and detailed motions circulated by council members, council adopted the budget with the following material points identified in staff presentations and the council motion:

- Transfer $3,500,000 from the pension reserve to help cover the 2025–26 actuarial payment. - Maintain a conservative unallocated general fund balance while funding several one‑time initiatives, including technology and community services items. - Advance an EMS user-fee implementation (see separate coverage) and include fee changes across departments in the city's master fee schedule.

Councilmembers highlighted priorities such as tree trimming, public safety wellness and training, harbor and waterfront staffing and operations and economic-development initiatives. For some proposals the council placed holds or asked staff to return with further analysis before making them ongoing budget commitments.

The council also agreed to a set of adjustments to the city’s fees as part of a companion master fee schedule action: the annual parking permit will rise (the council subsequently set the 2025–26 permit at $195), the preferential parking permit rates were adjusted for coastal and non-coastal zones, and several program and facility fees — including Seaside Lagoon admissions and the performing-arts facility surcharge structure — were revised.

Action: Council adopted by roll call Resolution No. CC-2506-O42 (annual budget) and directed inclusion of select Budget Response Reports; the vote was recorded by roll call and passed with the council present. The council also adopted a set of fee amendments (Resolutions CC-2506-O45, CC-2506-O43, CC-2506-O46 and CC-2506-O44) to align with the motion.

Why it matters: The budget sets the city’s spending priorities for the coming year, funds capital work on streets, parks and waterfront, and sets the financial assumptions staff will use for service planning. The city’s approach to the CalPERS payment and how it sequences new ongoing spending were central to deliberations.

What’s next: Staff will implement the approved CIP and operating budget and return as directed on items the council placed on hold or asked to revisit; staff will also finalize master-fee schedule updates to reflect the adopted changes.