AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO LUNA
ACTING PUBLIC WORKS DIRECTOR
SUBJECT: RESOLUTIONS APPROVING A LIST OF PROJECTS TO BE FUNDED BY THE SAFE, CLEAN WATER PROGRAM - MEASURE W FOR FISCAL YEAR 2026-27 AND AMENDING FISCAL YEAR 2025-26
title
summarySummary:
On November 6, 2018, Los Angeles County voters approved Measure W, a parcel tax designed to address regional water capture and reduce reliance on imported water. Measure W imposes a tax of 2.5 cents per square foot of impermeable surface area on private property in the Los Angeles County Flood Control District (District), and this tax generates approximately $285 million annually for the countywide Safe, Clean Water (SCW) Program. Staff recommends the City Council adopt a resolution to incorporate a list of projects and programs the SCW Measure W will fund for Fiscal Year (FY) 2026-27.
Staff recommends amending the FY 2025-26 Plan to reduce the 28th Street Green - Street project by $150,000 and include the Amphitheater Project for $150,000 and approve a budget transfer to reflect this amendment in the FY 2025-26 Capital Improvement Plan.
Strategic Plan Goals:
Goal No. 1 Financial Stability: Endure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
recommendation
Recommendations:
1. Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING THE LIST OF PROJECTS AND PROGRAMS FOR FISCAL YEAR 2026-27 TO BE FUNDED BY THE SAFE, CLEAN WATER PROGRAM - MEASURE W FUNDS
2. Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING THE ADOPTED BUDGET AND AUTHORIZING BUDGET APPROPRIATIONS FOR THE FISCAL YEAR 2025-26.
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Fiscal Impact:
Table 1 below details the Safe, Clean Water Program Fund's financial trajectory for FY 2026-27. After factoring in anticipated yearly revenues of $280,000 and expenditures of $341,250, the fund balance will decrease from $160,837 to $15,002. Despite the reduction, the projected ending balance confirms there will be sufficient funds for the proposed list of projects and programs.
Table 1: FY 2026-27 SCW Projections
|
SCW Projections |
FY 2026-27 |
|
Projected Beginning Fund Balance |
$76,252 |
|
Revenues |
$280,000 |
|
General Fund Expenditures |
($191,250) |
|
Capital Expenditures |
($150,000) |
|
Ending Fund Balance |
$15,002 |
Background:
Los Angeles County’s Measure W is a special parcel tax of 2.5 cents per square foot of impermeable surface area on private property in the Los Angeles County Flood Control District (District), which voters approved on November 6, 2018. This parcel tax generates approximately $285 million per year countywide for the Safe, Clean Water Program, SCW. Since the SCW program began, it has generated over $670 million for more than 100 projects that increased water supply and safeguarded waterways. The goal of the SCW Program is to improve water quality while achieving additional benefits, such as increasing water supply and investing in the health and well-being of Los Angeles County communities. The goals of the SCW Program include:
• Implementing a new plan for Los Angeles County’s water system to capture billions of gallons of water loss each year from rainwater running directly into the storm drain system.
• Helping protect coastal waters and beaches from the trash and contaminants in stormwater that make people sick and threaten marine life.
• Modernizing the 100-year-old water system infrastructure, using a combination of nature, science, and new technology.
• Helping protect public health, ensuring safer, greener, healthier, and more livable spaces for all.
• Preparing the region for the effects of a changing climate, including recurring cycles of drought, wildfire, and flooding.
• Requiring strict community oversight and independent auditing to ensure local funds raised stay local.
The Los Angeles County Flood Control District (District) implements projects and programs and allocates tax revenues to the Regional Program, Municipal Program, and District Program. The Regional Program, made up of nine Watershed Area Steering Committees (WASC), receives 50% of SCW funding. The Regional Program is responsible for funding multi-benefit regional projects and feasibility, scientific, and technical studies, as well as a Watershed Coordinator position for each WASC. The SCW Municipal Program receives 40% of the funding allocated to cities as a local return proportional to the revenues generated within its boundaries. The SCW District Program receives 10% of the funding for public education programs, local workforce job training, and school education programs.
Analysis:
The Safe, Clean Water funding is divided across the District, Regional, and Municipal Programs. The City’s Municipal Program funds must be used for eligible activities, including project development, design, construction, effectiveness monitoring, operations and maintenance, and other programs and studies related to protecting and improving water quality in lakes, rivers, and the ocean. Additionally, based on program guidelines, up to 30% of the funds may be used to maintain existing eligible projects and programs. Measure W emphasizes accountability, transparency, and community outreach, and requires the City to submit an annual list of proposed projects (Attachment A).
Proposed Funding Allocation Change from FY 2025-2026
In March 2025, the City approved a list of projects to be funded by SCW for FY 2025-26, which included the 28th Street - Green Street Design Phase Project for $250,000, also reflected in the City’s adopted FY 2025-26 Capital Improvement Program (CIP). This project is currently in the design phase, and the City is unlikely to spend the remaining $150,000 by June 30, 2026; therefore, staff recommends reducing the project budget by $50,000. Staff further recommends transferring $150,000 allocated for FY 2025-26 from the 28th Street - Green Street Design Phase Project to support the Amphitheater Project and use these funds for construction inspection services. As noted on the following table, the additional $100,000 for this project would be replenished by Measure W funds in the upcoming FY 2026-27 budget cycle.
Table 1a: FY 2025-26 SCW Funding Proposed Budget
|
Project |
Project No. |
Adopted |
Proposed |
|
28th Street - Green Street |
90.23015 |
$250,000 |
$100,000 |
|
Amphitheater |
90.24013 |
$0 |
$150,000 |
|
Total |
$250,000 |
$250,000 |
Additionally, the City’s adopted FY 2025-26 budget included $84,000 for General Fund Expenditure Transfers. To align with the approved FY 2025-26 SCW Annual Plan, staff recommends increasing this amount by $109,000, bringing the total General Fund Expenditure Transfers to $193,000.
As recommended by the City’s stormwater management consultant, John L. Hunter & Associates, the proposed Annual Plan for FY 2026-27 is outlined in Table 2:
Table 2: FY 2026-27 Proposed Annual Plan
|
Activity Name |
Type of Project New or Existing |
Type |
Annual Plan Amount |
|
Consulting Services |
Existing |
Program |
$60,000 |
|
Heritage Point Park - Low Impact Development |
New |
O&M |
$2,100 |
|
Hillbrook Park - Low Impact Development |
New |
O&M |
$8,400 |
|
Infrastructure Project Planning |
New |
Program |
$1,000 |
|
LA Harbor Toxics TMDL Downstream |
Existing |
Program |
$20,000 |
|
LA Harbor Toxics TMDL Upstream |
Existing |
Program |
$550 |
|
LLAR Watershed Management Program - Implementation |
Existing |
Program |
$29,000 |
|
Los Cerritos Channel Sub-basin 4 Stormwater Capture Facility |
New |
O&M |
$33,000 |
|
Los Cerritos Channel Management Program |
Existing |
Program |
$33,000 |
|
28th Street -Green Street Project |
New |
Project |
$100,000 |
|
Signal Hill Dog Park - Low Impact Development |
New |
O&M |
$2,100 |
|
Signal Hill Library - Low Impact Development |
New |
O&M |
$2,100 |
|
Amphitheater Project |
New |
Project |
$50,000 |
|
Total Budget |
$341,250 |
*O&M (Operation and Maintenance)
Municipalities that receive Measure W funds must provide annual progress and expenditure reports for all projects, due in December. The California Water Board and the Regional Oversight Committee will review these reports.
Recommendation:
Staff proposes that the City Council adopt a resolution to incorporate a list of eligible activities funded by the SCW Measure W for FY 2026-27 and amend the list and budget appropriation for FY 2025-26 to include the Amphitheater Project (Attachment B).
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachments:
A. Resolution Approving a List of Projects to be Funded by Safe, Clean Water
B. Budget Resolution