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CC:SA:HA:PA:CCPFA - PUBLIC HEARING: (1) Adoption of a City Council Resolution Approving and Adopting the Annual Appropriations Limit for Fiscal Year 2026-2027; (2) Adoption of Respective Resolutions Adopting the Fiscal Year 2026-2027 Budget for the City of Culver City, the Successor Agency to the Culver City Redevelopment Agency, the Culver City Housing Authority, the Culver City Parking and the Culver City Public Finance Authority; (3) Adoption of a Resolution Approving Salary Schedules for Miscellaneous Employees, Police Safety Employees and Fire Safety Employees Effective June 29 , 2026; and (4) Adoption of a City Council Resolution Authorizing a Decrease to the Contingency Reserve Below Established Target and Rescinding Resolution No. 2025-R052 Establishing a Committed Reserve for the Loan to Community Corp of Santa Monica (CCSM).
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Meeting Date: June 8, 2026
Contact Person/Dept: Stephen Agostini, Chief Financial Officer
Michael Towler, Finance Manager
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/04/2026)
Department Approval: Stephen Agostini, Chief Financial Officer (06/04/2026)
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RECOMMENDATION
Staff recommends (1) adopt a resolution approving and adopting the Annual Appropriations Limit for Fiscal Year 2026-2027; (2) the City Council and the Boards of the Successor Agency to the Culver City Redevelopment Agency (Successor Agency), Culver City Housing Authority (Housing Authority), the Culver City Parking Authority (Parking Authority), and the Culver City Public Financing Authority (collectively, “Boards”) adopt respective resolutions approving the Fiscal Year 2026-2027 Budgets for the City of Culver City, Successor Agency, Housing Authority, Parking Authority and the Public Financing Authority; (3) the City Council adopt a resolution approving Salary Schedules for Miscellaneous Employees, Police Safety Employees and Fire Safety Employees effective June 29, 2026; and (4) adopt a resolution authorizing a decrease to the contingency reserve below established target and rescinding resolution no. 2025-R052 establishing a committed reserve for the loan to Community Corp of Santa Monica (CCSM).
PROCEDURE
1) Mayor/Chair seeks motion to receive and file the Affidavit of Publication;
2) Mayor/Chair seeks a Motion to open the Joint Public Hearing;
3) Mayor/Chair calls for, and the City Council/Boards receive, public testimony;
4) Mayor/Chair seeks a Motion to close the Joint Public Hearing;
5) City Council adopts resolution approving the Annual Appropriations Limit for Fiscal Year 2026-2027;
6) City Council and Boards adopt respective resolutions approving the Fiscal Year 2026-2027 Budgets for the City of Culver City, Successor Agency, Housing Authority, Parking Authority and the Public Finance Authority;
7) City Council adopts a resolution approving salary schedules for Miscellaneous Employees, Police Safety Employees, and Fire Safety Employees effective June 29, 2026
8) City Council adopts a resolution authorizing a decrease to the contingency reserve below established target and rescinding resolution no. 2025-R052 establishing a committed reserve for the loan to Community Corp of Santa Monica (CCSM).
BACKGROUND/DISCUSSION
Annual Appropriation Limit:
In 1979, California voters approved Proposition 4 and created Article XIII B of the State Constitution, a state law that requires the state and local governments to adopt an annual appropriation limit. This limit, also referred to as the “Gann Limit,” establishes a limit on the proceeds of taxes that may be appropriated for spending in a given fiscal year. The limit initially allowed the City’s spending of tax proceeds to increase only by population growth and cost-of-living factors from the base year of 1978-1979.
In June 1990, Proposition 111 was passed which changed the base year to Fiscal Year 1986-1987 and altered the way the limit is calculated. It enabled cities to increase the limit annually in two ways. First, by a percentage equal to the increase from the preceding year in county or city population (whichever is greater); and second by an amount equal to the change in per capita personal income in California or the change in the assessment roll the preceding year due to the addition of local non-residential new construction (whichever is greater). The calculations also allow for exclusions of certain costs subject to the appropriation limit including but not limited to debt service, qualified capital outlay and the costs of complying with a federal mandate. Based on these guidelines, the City establishes the appropriation limit each fiscal year by resolution.
Fiscal Year 2026-2027 Budget
The City Manager’s/Executive Director’s Proposed Budgets for Fiscal Year 2026-2027 were delivered to City Council and made publicly available on May 11, 2026. Following publication, the City Manager hosted two informal Let’s Talk Budget Culver City community input meetings on May 13 and May 16, providing opportunities for residents to review and comment on the Proposed Budget and conducted an Community Budget Input survey which had a total of 373 responses (attachment 12).
The City Council conducted a Regular Meeting on May 26, 2026 to review departmental budget requests and receive additional public input. This meeting supplemented prior opportunities for the City’s Commissions, Committees, and Boards to provide feedback on the Proposed Budget. Based on feedback received through this series of meetings, staff incorporated all City Council directed modifications into the budget resolutions presented for Council adoption this evening.
Salary Schedules Effective June 29, 2026
All agencies that are members of CalPERS are required to ensure that pay schedules are publicly adopted and available as prescribed by the California Code of Regulations, Title 2, §570.5 and §571 (b). “Publicly available” is defined as posted at the employer’s office or immediately accessible and available for public review. Placing the adopted pay schedules on the City’s website meets this requirement.
The Salary Initiative Ordinance (SIO), initially approved by the Culver City electorate in 1953, and subsequently amended by the electorate in 1982, requires that the City Council adjust salaries for its sworn police and fire employees by an average increase of base salaries provided by the City and/or County of Los Angeles. Per the terms of the SIO, Culver City Safety groups receive 50% of what Los Angeles County and City of Los Angeles safety groups receive.
The Los Angeles City Council approved an agreement for a successor Memorandum of Understanding (MOU) for the Association of United Firefighters of Los Angeles City (UFLAC), effective June 30, 2024. The UFLAC will receive a 3% salary increase effective June 28, 2026; therefore, the Culver City Firefighters (FIRE) and Fire Management (FMGT) groups will receive a 1.50% mandated SIO increase effective June 29, 2026.
The Los Angeles City Council approved an agreement for a successor MOU for the Association of the Los Angeles City Police Officers, Lieutenant, and Below Representation Unit, effective July 2, 2023. The Los Angeles City MOU for the Police Officer Association will receive a 3% increase effective June 28, 2026; therefore, the Culver City Police Officer’s Association (POLC) and Police Management (PMGT) groups will receive a 1.50% mandated SIO increase effective June 29, 2026.
The County of Los Angeles is currently in negotiations with its safety units. Any SIO increases related to the County’s pending MOUs will be brought to the City Council for future approval later.
The Miscellaneous groups, Culver City Employees’ Association (CCEA), Culver City Management Group (CCMG), and the Executive Group contracts expire June 30, 2026, and any future negotiated increases will be brought back to City Council at a later date.
The attached resolution containing the salary schedule (Attachment 8) reflects all required changes to the salary schedules proposed for Fiscal Year 2026-2027.
Contingency Reserve / City Council Policy Statement 5002 (Financial Policies)
On March 10, 2025, City Council directed staff to include $16 million in the FY 2025-26 Proposed Budget for a loan to Community Corps of Santa Monica (CCSM) for the Jubilo Village affordable housing project. Of this amount, $4 million was to be disbursed in FY 2025-26, with the remaining $12 million scheduled for disbursement in FY 2026-27.
To support this action, the Council adopted Resolution 2025‑R051 on June 9, 2025, establishing a new Committed Reserve - Jubilo Village Reserve - to set aside the remaining $12 million. Council also adopted Resolution 2025‑R052, temporarily reducing the Contingency Reserve from 30% to 21.6% for FY 2025-26, with direction to return within six months with a plan to restore reserves within five years.
The FY 2026-2027 Proposed Budget reflects a balanced budget that strengthens long‑term fiscal stability and increases the Contingency Reserve from 21.6% to approximately 27.0%. The City is working with consultants to develop a long‑term financial plan, including evaluation of reserve levels consistent with industry standards.
Staff now recommends that the City Council approve and adopt a Resolution to continue the temporary authorization for a lower contingency reserve while the City Manager works to replenish it to its full level. The first step is to assign the City’s commitment to loan $16 million to CCSM to the newly formed Culver City Public Finance Authority. Once that assignment has been executed, the need for the Jubilo Village Reserve will no longer be present, and the funds from that reserve will be placed into the City Contingency Reserve, raising its level to approximately 27%.
Performance Measures
The FY 2026-27 Proposed Budget includes Key Performance Indicators (KPI’s) with targets and strategic actions for each Department. These measures will continue to be refined and aligned with City Council strategic priorities and Department Business Plans throughout the fiscal year. Detailed KPI summaries are provided in Attachment 9.
FISCAL ANALYSIS
The City calculates the appropriations limit each year as part of the budget process. Based on the City Manager’s/Executive Director’s Proposed Budget for Fiscal Year 2026-2027, the Finance Department has calculated the City’s Fiscal Year 2026-2027 Appropriation Limit to be $161,339,057. The City’s Fiscal Year 2026-2027 appropriations from the Proposed Budget that are applicable to Appropriations Limit are $127,478,853, which is $33,860,204 under the limit.
The Proposed Budget presented to City Council in May 2026 included $402,351,960 in appropriations (before adjustments for transfers between funds) and $395,803,671 in revenues (before adjustments for transfers between funds). The Proposed Budget for Fiscal Year 2026-2027 is available on the City’s website at: <https://www.culvercity.org/City-Hall/City-Departments/General-Info-Finance/Annual-Budget>.
Adjustments to these amounts are summarized in the tables included in the staff report and reflect Council’s direction from the May 26 meeting and final corrections. Detailed summary of adjustments are included in Attachment 7.
The adjustments include items recommended by the City Council at the Regular Meeting on May 26:
• Economic Development: $400,000 in one-time General Fund expenditure increase related to the forgivable loan fund for small businesses, including childcare centers/services
• Parks, Recreation, and Community Services: $100,000 in ongoing General Fund expenditure increase for After School Programs
• Parks, Recreation, and Community Services: $100,000 in one-time funding for a new pickleball court. This will be funded from the tax-exempt proceeds from the JPA.
• Mobile Crisis Team: $346,185 in ongoing General Fund costs associated with unfreezing two positions to expand service hours
The adjustments also include corrections made during Finance staff’s final review of the budget document. Adjustments include but are not limited to:
• Finance Department: net cost of $239,834 for 1.0 FTE Assistant CFO-Controller and 1.0 FTE Finance Operations Administrator. These two positions will proactively focus on improved financial reporting, internal controls and compliance audits, and operational efficiencies. The anticipated costs of these two positions are partially offset by anticipated Department savings
• Parks, Recreation, and Community Services: $239,804 increase in the part-time temporary budget to support full operational staffing for PRCS aquatics and recreation programs. This increase ensures sufficient staffing to operate the Plunge Pool at full capacity, minimizing risks of reduced hours or unplanned Plunge Pool closures.
• Citywide: $500,000 in anticipated costs associated with Memorandum of Understanding (MOU) negotiated employee benefits
• Self-Insurance Risk Management: $131,402 to reflect the addition of 1.0 FTE Human Resources Associate position to provide critical operational support for workers’ compensation administration, insurance compliance, and workplace safety programs
Revenue Adjustments
The City’s projected General Fund anticipated revenues remain unchanged. One proposed correction adjusts the Sewer Fund #204 transfer to the Capital Acquisition Fund #420 for the annual contribution to CIP #PS005 - Arterial Street Pavement Rehabilitation.
The tables below show the total expenditure and revenue adjustments proposed by Fund.
General Fund Balance
The final Proposed Fiscal Year 2026-2027 Budget for the General Fund remains balanced, with $208.0 million in revenues and $205.3 million in anticipated expenditures. The actions included in the Proposed Budget increase the Contingency Reserve from 21.6% to approximately 27.0%, maintains a $3 million reserve for future debt service payments, and maintains an operating reserve of $2.3 million. Collectively, these allocations demonstrate continued commitment to fiscal stewardship, ensuring adequate reserves for unforeseen circumstances while maintaining flexibility to support strategic priorities and operational planning needs.
The annual fiscal impact of the Salary Initiative Ordinance increase of 1.50%, effective June 29, 2026, equates to approximately $56,914 for the PMG and $254,712 for POA.
The annual fiscal impact of the Salary Initiative Ordinance increase of 1.50%, effective June 29, 2026, equates to approximately $31,842 for the FMG and $195,286 for FFA.
ATTACHMENTS
1. 2026-06-08 ATT 1 - Proposed Resolution for Annual Appropriation Limit and related Exhibits and Schedule I
2. 2026-06-08 ATT 2 - City Council Budget Resolution and related Exhibits A - G
3. 2026-06-08 ATT 3 - Successor Agency to the Culver City Redevelopment Agency Budget Resolution
4. 2026-06-08 ATT 4 - Housing Authority Budget Resolution
5. 2026-06-08 ATT 5 - Parking Authority Budget Resolution
6. 2026-06-08 ATT 6 - Public Finance Authority Budget Resolution
7. 2026-06-08 ATT 7 - Adjustments to the City’s Proposed Budget Fiscal Year 2026-2027
8. 2026-06-08 ATT 8 - Salary Schedule Resolution and related Exhibit A
9. 2026-06-08 ATT 9 - Department Key Performance Indicators
10. 2026-06-08 ATT 10 - Affidavit of Publication
11. 2026-06-08 ATT 11 - Proposed Resolution Authorizing a Decrease to the Contingency Reserve Below Established Target and Rescinding Resolution No. 2025-R052 Establishing a Committed Reserve for the Loan to Community Corp of Santa Monica (CCSM).
12. 2026-06-08 ATT 12 - Community Budget Input Survey Feedback
recommended action
MOTIONS
That the City Council:
Adopt a resolution approving and adopting the annual Appropriations Limit for Fiscal Year 2026-2027; and
That the City Council and Boards:
Adopt respective resolutions approving the Fiscal Year 2026-2027 Budget for the City of Culver City, Successor Agency, Housing Authority, Parking Authority and Public Financing Authority; and
That the City Council:
1. Adopt a resolution approving the Salary Schedule for Miscellaneous employees, Police Safety Employees and Fire Safety Employees effective June 29, 2026; and
2. Adopt a resolution authorizing a decrease to the contingency reserve below established target and rescinding Resolution No. 2025-R052 establishing a committed reserve for the loan to Community Corp of Santa Monica (CCSM).