AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: SIAMLU COX
ADMINISTRATIVE SERVICES OFFICER/FINANCE DIRECTOR
DEBBIE PACHECO
ACCOUNTING MANAGER
SUBJECT:
title
ADOPT A RESOLUTION AUTHORIZING CARRYOVER APPROPRIATIONS FROM THE FISCAL YEAR 2025-26 OPERATING EXPENDITURE BUDGET AND CAPITAL IMPROVEMENT PLAN BUDGET, AND RELATED FUNDING, TO THE FISCAL YEAR 2026-27 BUDGET AND RESOLUTIONS REVISING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEARS 2025-26 AND 2026-27
summary
Summary:
Staff recommends the City Council adopt a resolution authorizing the carryover of unspent appropriations from Fiscal Year (FY) 2025-26 to FY 2026-27. This routine annual process enables the City to re-appropriate funds for programs, purchases, and specific projects, particularly those within the Capital Improvement Program (CIP), that were not completed by the end of the prior fiscal year. Adopting these resolutions ensure the continuity of essential projects and prevents the loss of existing budget authority. In addition, the City Council will consider adopting the revised annual appropriations limit for fiscal years 2025-26 and 2026-27.
Strategic Plan Goal(s):
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 2 Community Safety: Maintain community safety by supporting public safety services and increasing emergency preparedness.
Goal No. 3 Economic and Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
1. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AUTHORIZING CARRYOVER APPROPRIATIONS FROM THE FISCAL YEAR 2025-2026 OPERATING EXPENDITURE BUDGET AND CAPITAL IMPROVEMENT PLAN BUDGET, AMENDING THE FISCAL YEAR 2026-2027 BUDGET.
2. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, REPEALING AND REPLACING RESOLUTION NO. 2025-06-6880 AND APPROVING AND ADOPTING THE REVISED ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26.
3. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, REPEALING AND REPLACING RESOLUTION NO. 2026-06-XXXX AND APPROVING AND ADOPTING THE REVISED ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026-27.
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Fiscal Impact:
The recommended action would enable the reappropriation of funds in the current fiscal year without any fiscal impact on the City. The City Council previously allocated funds as part of the Fiscal Year 2025-26 budget. The carryover process helps to manage the current year’s budget, while still ensuring the City can fund programs, purchases, and projects that were not completed in the prior fiscal year.
Subject to City Council approval, staff would amend the FY 2026-27 Budget to include citywide carryover appropriations of $892,838; this amount reflects unspent appropriations from FY 2025-26, detailed by fund in Exhibit A (Attachment A). The proposed appropriations allow departments to continue with previously approved initiatives using existing budget authority.
Background:
At the end of each fiscal year, departments review their budget to identify unspent or unencumbered funds that may be carried over into the next fiscal year. These funds may be allocated to previously approved projects, programs, or purchases that remain incomplete. The City Council must formally reappropriate carryover appropriations before these can be spent in the new fiscal year. This standard municipal budget practice ensures continuity and responsible financial management, allowing departments to continue work on approved initiatives.
Analysis:
The City’s standard practice is to request City Council approval to carry over appropriations into the next fiscal year to complete previously approved and budgeted capital improvement projects. Carryover appropriations are not for new or unplanned spending, instead, these represent funds already authorized in the prior year's budget for ongoing projects, programs, and purchases, such as a multi-year capital project, a purchase ordered but not yet received, or a program that experienced a delay.
The proposed Resolution specifies each appropriation by department, account, and fund, including the amounts to be carried over. This approach ensures transparency and allows the City Council to review and approve each carryover, thereby confirming funds are utilized as intended and maintains budget integrity. Exhibit A of the proposed Resolution provides a breakdown of the total dollar amounts requested for carryover appropriations from the General Fund, Vehicle Replacement Fund, and the Capital Improvement Program Fund.
|
Fund |
Carryover Amount Requested |
|
General Fund |
$847,386 |
|
Capital Improvement Program Fund |
$19,380 |
|
Internal Service Fund - Vehicle Replacement |
$26,072 |
|
Grand Total |
$892,838 |
If approved by the City Council, the proposed Resolution would authorize $892,838 in carryover requests across the General Fund, Capital Improvement Fund, and the Internal Service Fund. This proposed carryover amount is necessary to continue working on various capital projects and expenditures from the previous Fiscal Year into FY 2026-27, while maintaining budget integrity and responsible financial management. Importantly, this additional spending remains well below the City’s newly established appropriations limit for FY 2025-26 and 2026-27, as updated to reflect the FY 2025-26 population changes for Los Angeles County and detailed in Exhibits C and D. As such, the City’s total appropriations funded by proceeds of taxes continue to comply with the requirements of Article XIII of the California State Constitution, and the City maintains a strong fiscal position within the legal spending limits.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachments:
A. Resolution
B. Exhibit A - FY 2025-26 Carryover Budget Adjustment Requests
C. Exhibit B - Summary of Budget Adjustments (as of 10-27-26)
D. Exhibit C - Resolution Appropriations Limit FY 25/26
E. Exhibit D - Resolution Appropriations Limit FY 26/27