Redondo Beach staff outlines CIP spending, carryover and tighter discretionary funds ahead of May budget
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Summary
Public Works staff briefed a joint meeting of the Public Works & Sustainability and Budget & Finance commissions on the Capital Improvement Program, reporting $17.8 million spent so far this fiscal year, about $64.5 million in projected carryover (largely grants), and limited discretionary funding for new projects in FY 2025–26.
At a joint special meeting of Redondo Beach’s Public Works and Sustainability Commission and the Budget and Finance Commission, city staff presented a status update on the Capital Improvement Program and preliminary priorities for the FY 2025–26 capital budget.
The presentation, given by Public Works staff member Jesse Reyes, said the city has spent about $17.8 million so far in the current fiscal year and is tracking toward near last year’s higher total. Reyes said a small number of projects accounted for a large share of current spending: "Out of the $17,800,000 ... five projects really made up half of that cost," naming Dominguez Park play equipment, the bicycle implementation project, the Manhattan Beach Boulevard resurfacing work, the Portofino pump station and the Revere Village / boardwalk paver project as the largest expenditures.
Reyes told commissioners the city estimates roughly $64.5 million in carryover into the next budget cycle — money already appropriated to specific projects but not yet spent. He emphasized that much of that total is grant or regional funding that spans multiple years: "It looks like a big number, but a lot of this is...grant funding and regional money that happens over multiple fiscal years," Reyes said, citing Fulton Playfield ($3.4 million) and Seaside Lagoon (about $8 million) as examples.
Why it matters: staff said discretionary capital funds have dwindled, meaning fewer new, locally funded projects will be proposed next year. Instead, the FY 2025–26 CIP will focus on completing an existing backlog of projects and advancing grant-funded work. Reyes summarized staff’s near-term schedule: the city manager’s proposed budget is slated for release May 16 (a charter requirement), the Planning Commission review is scheduled for May 15, and the public hearing on the CIP is on June 10.
Commission members pressed staff for project-level cost detail. "Give us the data, and then we'll start looking at it," Budget and Finance Commission member Vijay Jeste said, asking that completed projects show both the original council-approved estimate and the final cost (including contingency and change-order detail). Reyes and other staff described the distinction they use between an engineering estimate that changes as a project moves from concept to design and a true construction overrun that requires additional appropriations. Reyes said the department maintains contingency budgets (commonly about 10%) and typically will not proceed with construction unless funding appears sufficient; he cited a parking-structure repair bid that came in far above the available budget and was rejected.
Commissioners and Budget & Finance members requested a digestible, project-by-project table that compares the initial contracted amount and subsequent change orders or additional scope. Staff told commissioners they would prepare that information after the budget season and aim to bring a compiled summary to the committee in the summer; Reyes said staff could "turn attention to that" once the proposed CIP is complete and suggested a tentative August follow-up.
Staff also described program priorities for FY 2025–26: continued emphasis on the residential street rehabilitation program, city facilities upkeep (HVAC, roofs, etc.), and several council priorities including Veterans Park Historic Library improvements and upgrades to the Redondo Beach Performing Arts Center. Reyes noted Measure FP — a recently approved ballot measure providing funding for new public-safety facilities — will cover police and fire station needs, which means discretionary capital money that previously went toward those facilities can be redirected to other city facilities. At the meeting a commissioner cited the Measure FP program total as $93,500,000; staff said amounts previously allocated annually for routine facility upkeep were typically in the $300,000–$500,000 range.
On grants and regional programs, staff described ongoing coordination with Metro and other agencies on major multimodal projects including the South Bay bicycle network and Riviera Village multimodal improvements. Reyes said Metro prefers protected (Class 4) bikeways where feasible but acknowledged geometric and jurisdictional constraints in some segments.
Action: a motion to receive and file the CIP presentation was made and seconded and the commissioners voted to receive and file the presentation. Staff said the presentation would be incorporated into the proposed CIP and carried forward to the city’s budget process.
Next steps: staff will complete the proposed CIP and submit the manager’s recommended budget on the charter schedule (May 16), present the CIP at the Planning Commission on May 15 and hold the public hearing at the second council meeting in June (June 10). Staff committed to prepare the requested project-by-project comparison of original contract/estimate, contingency, and final costs for current and recently completed projects and to return with that digestible summary in the summer (tentatively August).
