City manager previews Redondo Beach FY 2025–26 budget, flags PERS payment and public-safety costs

City Manager Mike Wazanski told the Redondo Beach Public Safety Commission on Feb. 27 that the city will present its proposed fiscal year 2025-26 operating budget to the City Council in mid-May and that "revenues are strong," driven largely by property tax and a recovering transient-occupancy tax.

The preview focused on revenue growth, near-term expenditure pressures and a handful of one-time public-safety expenses. Wazanski said the city has increased its property-tax forecast "by a little over $2,000,000" based on early assessed-valuation data and expects roughly 5% assessed-valuation growth next year. He also told commissioners the budget will need to accommodate a roughly $4,000,000 unfunded-accrued-liability (PERS) payment coming in the next fiscal year.

Wazanski said the city expects additional transient-occupancy tax (TOT) revenue next year tied to new hotels coming online, including a fully operational Marine Avenue Hotel site and a hotel at the old Legado site, which the city estimates will deliver about $1 million of annualized TOT when fully operating.

Public-safety items called out for the FY25-26 planning cycle included one-time set-asides for the drone program and for the crossing-guard program. Wazanski told commissioners the crossing-guard program has grown to 27 intersections and costs roughly $560,000, and the city has been using one-time funds to patch the program while it determines what to incorporate into the core budget. He also said the school district currently reimburses the city about $100,000 a year for two school-resource officers and that the district may be asked to contribute further to safety-related positions.

Wazanski warned commissioners that the harbor uplands and tidelands enterprise funds, which pay for dedicated police, fire and public-works personnel on the waterfront, remain below pre-COVID levels and may require additional city subsidy at year end.

On larger capital questions, Wazanski updated the commission on a proposed replacement firing-range project that the city is pursuing through a federal grant opportunity. He said the $15 million to $17 million request would cover not only a new indoor-range facility but also a replacement parks maintenance yard co-located at the site. The city plans pre-design and environmental work now and expects pre-application costs in the range of a half-million dollars to prepare a federal grant application. If the city secures federal partners to train in the new facility, Wazanski said there is a possibility the federal agency could waive the local match and cover construction costs in full.

Commissioners used the session to press for more budget transparency and auditing. Commissioner Eskantrias asked for more detailed line-item reporting and sunset clauses for pilot programs; Wazanski said recent budgets have included more granular line items department- and division-level breakdowns and pointed to budget response reports and the comprehensive annual financial report as existing accountability mechanisms. Wazanski also said the city has funded additional auditing resources.

Several commissioners and members of the public raised issues tied to budget decisions already made or under discussion, including the council's recent shortening of a holiday parking fee waiver (generating about $92,000 in additional revenue) and a fee increase for concealed-carry permits.

Wazanski said the city will present the formal proposed budget to the council by May 16 as required by the city charter and expects council hearings through June before seeking final adoption by the July 1 start of the fiscal year.

Wazanski concluded by inviting follow-up, saying he would continue to meet with commissions and provide budget-response material as the city compiles department requests and grant opportunities.

Ending: The commission did not take formal action on the budget preview; members asked staff to return with further information and said they would review the city's budget response reports and council hearings in the spring.