Council receives midyear budget report; directs staff on crossing guards, fireworks and TOT analysis

City staff presented a midyear budget review showing revenues ahead of the adopted budget in several categories, including property taxes and transient-occupancy taxes tied to new hotels; spending was largely on track. The council received the report, approved a small set of decision packages and gave staff several implementation directions and follow-up assignments.

Finance staff told the council assessed value increases and temporary revenue improvements had moved the city's projected year-end unallocated general-fund balance higher than the adopted midyear estimate. Internal-service-rate revisions and decision-package requests were modest; staff recommended holding unallocated fund balances in reserve pending 2025-26 budget work. The council received the presentation and the Capital Improvement Program update from the city's CIP manager.

Council voted to approve most of the small decision packages the staff proposed and took specific actions on several public concerns raised during the meeting: the council directed the city manager to send a formal request to the Redondo Beach Unified School District asking for reimbursement or contribution toward crossing-guard costs at school-adjacent locations, and approved a short-term appropriation to provide temporary crossing-guard service at two high-need intersections while the city and district pursue a longer-term funding arrangement. Council approved funding to replace stolen veteran-commemorative plaques at Veterans Park and declined a request from an event organizer for a fee waiver at Seaside Lagoon (citing consistent policy). Council also asked staff to pursue options for the July fireworks program (seek hotel/harbor contributions and evaluate barge vs. land-based shows and whether more than one night would be feasible given costs) and directed a citywide TOT and tourism-assessment analysis to return in May so the council could consider ballot or policy options.

Staff also briefed the council on the Capital Improvement Program (CIP). Staff reported steady progress in a busy CIP year with a number of projects completed and others under construction; the director said the program remains productive but noted large projects and grant applications remain work in progress. Council asked for clearer project-scheduling details and suggested distinguishing pre-design work from final design in future CIP status reports.

The council—s actions included receiving and filing the midyear report, approving staff-recommended decision packages, directing the city manager to seek school-district contribution for crossing guards and approving a set of near-term implementation steps for Veterans Park plaques and fireworks planning. Staff will return in May-June with results on the RFP for meeting minutes (see separate item), a tourism/TOT briefing and the fiscal-year 2025-26 proposed budget.