1978 SPECIAL MEETING AGENDA CITY OF LA HABRA HEIGHTS CITY COUNCIL 1245 North Hacienda Road La Habra Heights, California 90631 5:30 p.m. Regular Business April 21, 2025 I, Rafferty Wooldridge, as City Manager of the City of La Habra Heights, do hereby call a special meeting of the City Council of the City of La Habra Heights, to be held at the time and place listed above to discuss the matters listed below. ZMA Rafferty Wooldridge, City Manager of the City of La Habra Heights The City of La Habra Heights complies with the Americans with Disabilities Act of 1990. If you require special assistance to attend or participate in this meeting, please call the City Clerk's office at (562) 694-6302. Materials related to any items on this agenda submitted to the Council after distribution of the agenda packet are available for public inspection at the City Clerk's Office at 1245 N. Hacienda Road, La Habra Heights, CA 90631 during normal business hours. PUBLIC COMMENT PROCESS Each member of the public may speak for a total of five minutes on any action item listed on the agenda. To speak in the Public Comment segment please complete and deliver a speaker's card to the Clerk prior to the call for public comments. You will be called to the podium by name when it is your turn to speak. All Public Comments shall be made in accordance with Section 6 and Section 8 of the City of La Habra Heights Rules of Procedure. VIEW THE CITY COUNCIL MEETING LIVE AT: WWW.LHHCITY.ORG NOTICE If you challenge any action of the City Council in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing (Gov. Code 65009(b)(2)). OPENING CEREMONIES 1. CALL MEETING TO ORDER 2. ROLL CALL A. John Pespisa, Mayor B. Carol Engelhardt, Mayor Pro Tempore C. Brian Bergman, Council Member D. Greg Steffire, Council Member E. Norm Zezula, Council Member 3. FLAG SALUTE 4. PUBLIC COMMENTS ON MATTERS ON THE AGENDA ADMINISTRATIVE ITEMS 5. REVIEW OF GENERAL FUND RESERVE POLICY RECOMMENDATION: It is recommended that City Council review the reserve policy and associated amounts. The City Council may add, remove, or modify categories and dollar amounts as deemed appropriate. 6. FISCAL YEAR 2025-26 PROPSOSED BUDGET STUDY SESSION RECOMMENDATION: It is recommended that the City Council provide input and direction to Staff regarding the FY 2025-26 Proposed Operating Budget. SPECIAL CITY COUNCIL MEETING AGENDA 2 APRIL 21, 2025 7. REVIEW OF STRATEGIC PLANNING RECOMMENDATION: It is recommended that the City Council: A. Review and discuss the current Mission Statement and Goals and Strategic Work Plan; AND B. Review and discuss the proposed Vision and Values; AND C. Approve an organization-wide strategic plan with a Vision, Mission Statement, Values, and Goals and Work Plan for Fiscal Year 2025-26. END OF ADMINISTRATIVE ITEMS ADJOURN MEETING UPON ADJOURNMENT OF THE MEETING, PLEASE LEAVE THE ROOM PROMPTLY AND TAKE YOUR PERSONAL BELONGINGS WITH YOU TO ALLOW STAFF TO CLEAN UP AND CLOSE THE BUILDING. IF YOU ARE RECORDING, PLEASE NOTE THAT THE CONVERSATIONS THAT TAKE PLACE FROM THIS POINT FORWARD MAY BE PRIVATE, ARE NOT PART OF THE PUBLIC MEETING, AND CONSENT OF ALL PARTIES TO THE CONVERSATION MAY BE REQUIRED PRIOR TO RECORDING. SPECIAL CITY COUNCIL MEETING, AGENDA 3 APRIL 21, 2025 City of La Habra Heights AGENDA REPORT Meeting Date: April 21, 2025 1978 Agenda Item # 5 TO: Honorable Mayor and City Council FROM: Rafferty Wooldridge, City Manager BY: Angie Martinez, Finance Manager SUBJECT: REVIEW OF GENERAL FUND RESERVE POLICY BACKGROUND On June 10, 2024, the City Council adopted a General Fund Reserve Policy, which will be reviewed annually as part of the budget process. The General Fund is the City's primary operating fund. It is used to finance general services provided by the City, including public safety and capital improvements. The Governmental Accounting Standards Board (GASB) issued GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, to improve clarity and consistency in fund balance reporting. This statement eliminated the previous reserved" and "unreserved" classifications fund balance classifications and replaced them with five new classifications: Nonspendable: Consists of amounts not available for expenditure due to legal or contractual requirements, or because they are not in a spendable form. Restricted: Consists of amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments, or through constitutional provisions or enabling legislation. Committed: Consists of amounts that are constrained to specific purposes by formal action of the City Council taken before the end of the fiscal year. These constraints can only be changed or removed by the same level of formal action. Assigned: Amounts intended for a specific purpose, as authorized by the City Manager, that are neither restricted nor committed. The purpose of the assignment must be narrower than the purpose of the General Fund. In funds other than the General Fund, the assigned fund balance represents the residual amount. Unassigned: This classification is the default for all funds that do not fall into the other categories. It represents the residual classification for the General Fund and may report a surplus or deficit. In funds other than the General Fund, the unassigned classification should only be used to report a deficit resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. These revisions were made to provide greater clarity and consistency in fund balance reporting, thereby improving the overall usefulness of fund balance information. The requirements of Statement 54 went into effect June 30, 2011. ANALYSIS General Fund reserves are classified into two categories: Restricted and Designated. Restricted reserves are those that are not considered available due to financial, accounting, or legal restrictions. Designated reserves are established by Council policy for an intended purpose and are available for use per Council direction. The City maintains a healthy reserve. It is anticipated that the General Fund balance will have approximately $6,850,354 at the close of the current fiscal year ending June 30, 2025. This fund balance represents over 110% of annual expenditures, which is well above the average of comparable cities. Of this amount, the City Council has designated $3,500,000 in accordance with its General Fund Reserve Policy. The General Fund Unassigned Reserve of $3,500,000 is intended to ensure the continued delivery of City services in the event of economic uncertainties, disasters and financial hardships resulting from downturns in the local, regional or national economies. This reserve is also intended to be sufficient to address contingencies for unseen operation or capital needs, as well as cash flow requirements. The estimated designated reserve amounts represent approximately 51% of City's General Fund balance. Estimated General General Fund Reserves Fund Balance as of 6/30/2025 Undesignated: Unassigned 1,850,354 General Fund Reserve 3,500,000 Designated: Infrastructure (Roads & storm drains) 500,000 Equipment (Vehicles & machinery) 550,000 Civic Facilities (City Hall, fire station, park, & gym) 400,000 Accrued Liability 50,000 Total General Fund Balance: $ 6,850,354 RECOMMENDATION It is recommended that City Council review the reserve policy and associated amounts. The City Council may add, remove, or modify categories and dollar amounts as deemed appropriate. ATTACHMENTS 1. General Fund Reserve Policy CITY OF LA HABRA HEIGHTS GENERAL FUND RESERVE POLICY PURPOSE The City of La Habra Heights is committed to prudent financial management, which includes maintaining fiscal stability and implementing sound fiscal practices. Fiscal stability is achieved through cost control and the development of a broad and diversified revenue base. Additionally, the establishment of prudent financial reserve policies is essential to ensure the long-term financial health of the City. Sound financial management also requires the discipline of maintaining adequate reserve funds for both anticipated and unanticipated contingencies. These contingencies may include, but are not limited to: Cash flow requirements Economic uncertainties including downturns in the local, state or national economy Local emergencies or natural disasters Loss or reduction of major revenue source Liability Claims Vehicle and equipment replacement Future capital projects Capital asset and infrastructure repair and replacement The City's General Fund Reserve Policy serves to identify and'isolate the portion of the City's funds that is unavailable to support the current or following year's budgetary expenditures. These funds may be used as a liquidity reserve, and for spending in future years. This policy is designed to provide clèar guidelines for the City of La Habra Heights in establishing and maintaining appropriate reserve levels. This General Fund Reserve Policy is intended to promote the prudent uses of resources, ensure the delivery of essential services to taxpayers, and support sound financial managément practices. It is essêntial that the City maintain adequate reserve levels to help mitigate financial risks and provide a safeguard against revenue shortfalls. The Government Finance Officers Association (GFOA) recommends the establishment of a formal fund balance policy, stating that such policies minimize political considerations of adequate reserve, lèvels and keep the municipalities more focused on providing structural balance in their operations!" POLICY It is the policy of the City of La Habra Heights to ensure the continuity of City government by planning in advance for economic uncertainties and for major expenditures, particularly those that are unplanned, which may impact the City's General Fund. To achieve its reserve goals, the City must take the following actions: CITY OF LA HABRA HEIGHTS GENERAL FUND RESERVE POLICY Minimize the cost of City debt through pay-as-you-go" policies that emphasize the importance of "save first, spend second"; 1 Exercise prudent debt and liability management policies; Follow sound fiscal management policies that prioritize the City's core services; Establish various reserves that accumulate funding for economic uncertainties, emergencies, contingencies, risk management liabilities, equipment replacement, infrastructure repairs, and planned major capital expenditures, OBJECTIVES The General Fund Reserve Policy is intended to assist the City in achieving the following equally important objectives: 1. Build adequate reserves which will provide the City with the necessary resources for financial stabilization, particularly during unforesèen emergencies and/economic downturns. 2. Establish sound fiscal reserve policies that serve as the foundation for strong fiscal management and guide future City decisions. 3. Provide a clear understanding of the goals and purposes of all City-maintained funds, particularly those with çonstraints or designations that render them unavailable for current expenditure, including unassighed fund balances. 4. Establish prudent guidelines for the use and replenishment of the City's unassigned fund balances and reserves. 5. Guide the City in meeting both its short-term and long-term obligations. 6. Implement a process for periodic reporting and review of the City's various fund balances. 7. Maintain a favorable City çredit rating with rating institutions through the Development of well-defined policies that promote sound fiscal management. CITY COUNCIL DESIGNATION OF RESERVES The City Council may, from time to time, designate portions of General Fund's unreserved fund balance for future capital projects, continuing or carry-over appropriations from prior fiscal years for operating or capital expenditures, or any other municipal purpose deemed prudent or necessary. To achieve the City's fiscal reserve goals, it is the policy of the City Council that the City shall strive to maintain a minimum unassigned fund balance of $3,500,000. City Council approval is required for any expenditure of this unassigned fund balance. To preserve capital and support CITY OF LA HABRA HEIGHTS GENERAL FUND RESERVE POLICY the growth of principal, a portion of these reserves may be conservatively invested in accordance with the City's Statement of Investment Policy. Annual Adjustment of Reserve Levels Reserve levels will be reviewed and adjusted annually in accordance with this policy. They will be set during the preparation of the City's annual financial statements, Annual Review of Policy The City Council shall review the General Fund Reserve Policy annually and consider any changes it deems appropriate. This review shall take place in conjunction with the adoption of the City's Operating Budget and Capital Improvement Project Program. City of La Habra Heights AGENDA REPORT Meeting Date: April 21, 2025 1978 Agenda Item # 6 TO: Honorable Mayor and City Council FROM: Rafferty Wooldridge, City Manager BY: Angie Martinez, Finance Manager SUBJECT: FISCAL YEAR 2025-26 PROPSOSED BUDGET STUDY SESSION BACKGROUND The budget process begins in mid-February with a review of revenues and expenditures to date, along with the development of projects and services budgets by each department in support of City Council's strategic goals and objectives. Department budget proposals are reviewed by the Finance Manager and the City Manager, and then prepared for consideration at the Budget Study Sessions held each April and May. The budget study sessions support City Council's strategic goal of maintaining a transparent government. During the study sessions, the City Council reviews revenue projections, considers the services and programs to be offered through the proposed expenditure budget for the upcoming fiscal year, and provides further direction to the City Manager on budget priorities. Final budget documents, including expenditure and revenue plans, special revenue funds, and capital improvement projects, are developed for formal adoption each June. Throughout the subsequent fiscal year, which runs July 1 through June 30, the City Council, City Manager, and Finance Manager monitor revenues and expenditures and make budget appropriation adjustments as needed to respond to the needs of the community and organization. DISCUSSION The city's operating budget consists of the General Fund, which supports general services through revenues from property tax, sales tax, development fees, and other non-restricted revenue sources, including grant funds, capital improvement funds and reserves. The city has maintained a healthy General Fund balance, in addition to its restricted reserves. In mid-February, the Finance Manager met with departments to outline budget policies and requirements for the upcoming fiscal year. All Departments submitted their budgets and funding requests, which were reviewed by the Finance Manager and the City Manager during departmental meetings. This process was conducted in preparation for the presenting the proposed FY 2025-26 Budget to the City Council. Formal adoption of the budget is scheduled for the June 9, 2025, City Council meeting. General Fund The City's proposed FY 2025-26 General Fund budget shows a projected surplus of $384,557 in revenues over expenditures. Total estimated revenues are $6,583,863, an increase of $68,010 or 1% more than the previous year. The projected expenditures are $6,199,306, which is about $156,126 or 2.5% less than the previous year. Revenues Outlined below are the primary factors involved in developing the revenue estimates for the FY 2025-26 proposed General Fund budget: Property Tax Property Tax is the City's largest revenue source at 44% of all General Fund revenue and projected to total 2,799,126. For every $1 of property tax collected, the City of La Habra Heights receives $0.1004. An increase in property tax revenue of $114,038 is anticipated compared to the prior year's estimated budget amount. The assessed values for 2025-26 are based on data from 2024. Negative impacts may arise from assessment appeals and subsequent reductions in supplemental assessments during the remainder of 2024 and into 2025. Franchise Fees Fees are collected from Southern California Edison, the Gas Company, Charter Communications, and Ware Disposal, on a monthly, quarterly, and/or annual basis. There is an estimated of increase of $164,000. Development Fees - Development is still considered an "essential" service and continues in the City. Staff expects a leveling off of development activity. An increase of $42,980 from last year's estimated revenues was budgeted for development fees. Administrative Fees = The City will receive an estimated advance payment of $144,200 from Ware Disposal, Inc. This amount is intended to cover a portion of the annual administrative costs the City expects to incur in the upcoming year. Expenditures Outlined below are the primary factors involved in developing the expenditure estimates for the FY 2025-26 proposed General Fund budget: Although inflation has remained high, driving up costs for City infrastructure projects, supply purchases, and service contracts that are essential for maintaining the City's basic functions. For FY 2025-26, General Fund expenditures are project to total $6,199,306 and were developed to resemble a "roll-over" budget as much as possible. City staff identified ways to reduce expenditures by $156, 126 compared to the prior year, resulting in only minimal increase being included in the budget. Outlined below are the primary factors involved in developing the revenue estimates for the FY 2025-26 proposed General Fund budget: A summary of budget changes are as follows: Salaries and benefits = Salary totals assume a one-step increase for each staff member on their anniversary date, if merited, as determined by the City Manager. Retirement The City is required to contribute approximately $184,879 toward its Unfunded Accrued Liability (UAL), with projected annual increases in required contributions. Public Safety - The Sheriff's Department has preliminarily increased the Deputy Sheriff Service Unit rate by 4.5%. Additionally, the Liability Trust Fund rate has increased to 13%. These changes will result in an increase of $21,685 compared to the prior year's estimated budget. General Services - The City's annual insurance premiums have increased by $61,662, bringing the total to $339,043. Some claims can take years to resolve, and their estimated values may change as new information becomes available. Retrospective adjustments, based on the ongoing development of past coverage period claims, may result in either additional payments or refunds. Capital improvement Projects The Capital Improvement Project includes the following: the FY 2023-24 and FY 2024- 25 Street Improvement Projects, design only for FY 2025-26 Street Improvement Project, the Hacienda Road Traffic Signal and Striping project, guardrail improvements along Hacienda Road project, and the Park Accessibility Ramp project. Fire Fund Estimated revenues for the Fire Fund total $1,511,876. The estimated transfer in from the General Fund is $642,346, an increase of $98,571 compared to the previous year. Estimated expenditures total $2,154,222, and are broken down as follows: Fire Suppression (FIR): $1,265,298. Medical Emergency Services (EMS): $587,776 Brush Clearance Program (BCP): $301,148 Special Revenue Funds Special Revenue Funds include grant funds, federal funds, various tax revenues, and special district funds. Each fund represents a specific revenue source collected or received for a restricted purpose. Gas Tax (210) = Accounts for the Highway Users Tax Account revenues received from the State of California based on the vehicle registration assessed valuation & population; as the population and assessed value of regular vehicles changes, the apportionment received is adjusted accordingly. These funds are to be used for construction and maintenance of City streets. The City is expecting to receive $171,499 in 2025-26, and the fund is estimated to have an ending fund balance of $260,229. Road Maintenance Rehabilitation (215) - The Road Repair and Accountability Act of 2017 (SB 1) is a long-term transportation funding source for road safety improvements such as filling potholes and repairing local streets. The City is expecting to receive $156,343 in 2025-26, and the fund is estimated to have an ending fund balance of $393,854. Proposition A (220) = Sales tax was approved by voters in 1980, is a one-half of 1% tax on most retail sales in the County. Metro returns 25% of the Proposition A tax to the cities in the County for transportation purposes. The oalance of the Proposition A tax is restricted 35% for rail development and 40% for discretionary purposes. Almost all of the discretionary portion is used to fund bus service provided by Metro and 16 other municipal bus operators within the County. The City is expecting to receive $148,661 in 2025-26, and the fund is estimated to have an ending fund balance of $250,352. Proposition C (221) = Sales tax was approved by voters in 1990, is an additional one- half of 1% tax on retail sales in the County. Metro returns 20% of the Proposition C tax to the cities in the County for transportation purposes. The balance of the Proposition C tax is restricted 40% for construction and operation of the bus transit and rail system; 5% to expand rail and bus security; 10% for commuter rail, construction of transit centers, park and ride lots and freeway bus stops; and 25% for transit-related improvements to freeways and state highways. The City is expecting to receive $126,253 in 2025-26, and the fund is estimated to have an ending fund balance of $190,665. Measure M (222) - Was approved by Los Angeles County voters in the November 2016 election. Measure M is an ordinance authorizing an additional % of 1% sales tax to fund traffic relief, damaged potholes, pavement of local streets and rail expansion according to an expenditure plan contained in the ordinance. The City is expecting to receive $107,590 in 2025-26, and the fund is estimated to have an ending fund balance of $172,839. Measure W (224) = The safe, Clean Water Act was approved by Los Angeles County voters on November 7, 2018. This is a special tax of 2.5 cents per square feet of impermeable area for parcels located in Los Angeles County Flood Control District. The tax would pay for projects, infrastructure, and programs to capture, treat, and recycle rain water. The City is expecting to receive $175,000 in 2025-26, and the fund is estimated to have an ending fund balance of $799,722. Measure R (225) - Was approved by 2/3 of the Los Angeles County voters in the November 2008 election. Measure R is an ordinance authorizing an additional %2 of 1% sales tax to fund traffic relief and rail expansion according to an expenditure plan contained in the ordinance. The Measure R sales tax became effective July 1, 2009 and will remain in effect for 30 years. The City is expecting to receive $95,815 in 2025-26, and the fund is estimated to have an ending fund balance of $182,984. Street Assessment District No. 7 (226) - This fund accounts for the distribution and use of a special property tax assessment to pay for street improvements. The assessment district was approved in 2018. The City is expecting to receive $396,966 in 2025-26, and the fund is estimated to have an ending fund balance of $340,396. Air Quality Management District (228) = The AQMD fund accounts for monies received from the South Coast Air Quality Management District. These funds are used specifically to implement air quality improvement policies and programs or for projects that will reduce the air pollution in La Habra Heights. The City is expecting to receive $8,500 in 2025-26, and the fund is estimated to have an ending fund balance of $52,633. Transportation Development Act (229) - Accounts for the distribution and use of funds provided by the Transportation Development Act (TDA) of 1971 for funding to improve existing transportation services and encourage regional transportation coordination. Recycling Payment Program (233) - This fund accounts for the distribution and use of grant funds from the Department of Resources Recycling and Recovery (CalRecycle) for beverage container recycling programs. Community Development Block Grant (240) - This fund accounts for the funding from the Department of Housing and Urban Development (HUD) in the form of a Community Development Block Grant (CDBG) program. The program has specific federal guidelines and all CDBG fund expenditures are monitored for compliance with both federally mandated rules and regulations and County of Los Angeles regulations. Supplemental Law Enforcement Services (262) - Accounts for the receipts and disbursements of monies awarded to the City under the Citizens Option for Public Safety program (otherwise known as COPS). The grant was established by State Assembly Bill 3229 and is apportioned from the State of California through the County of Los Angeles. The City is expecting to receive $200,000 in 2025-26, and the fund is estimated to have an ending fund balance of $182,728. Public, Educational, Government Grant (280) - PEG fees are restricted for use on public access programming and equipment. The City uses these fees to purchase cameras and other equipment to film and replay Council, Planning Commission and Roads Advisory Committee Meetings. The City is expecting to receive $17,600 in 2025-26, and the fund is estimated to have an ending fund balance of $100,237. General Fund Reserves The proposed budget for FY 2025-26 estimates the June 30, 2026 fund balance to be $7,385,064. Management has made the following assumptions for Reserves: Estimated General General Fund Reserves Fund Balance as of 6/30/2026 Undesignated: Unassigned 2,235,064 General Fund Reserve 3,500,000 Designated: Infrastructure (Roads & storm drains) 550,000 Equipment (Vehicles & machinery) 600,000 Civic Facilities (City Hall, fire station, park, & gym) 450,000 Accrued Liability 50,000 Total General Fund Balance: $ 7,385,064 The proposed budget, as presented, is structurally balanced: Estimated General Fund Revenue: $6,583,863 General Fund Recurring Expenditures $6,199,306 Revenues OVER / (UNDER) Expenditures: $ 384,557 FISCAL IMPACT There are no fiscal impacts associated with the recommended actions on this report. The Proposed Budget for all City funds for FY 2025-26 is currently projected to total $10,498,829 and includes a Capital Improvement Projects (CIP) Budget of $4,074,524. The General Fund budget is projected to total $6,199,306 in expenditures and will be supported by projected revenues of $6,583,863. RECOMMENDATION It is recommended that the City Council provide input and direction to Staff regarding the FY 2025-26 Proposed Budget. ATTACHMENT 1. FY 2025-26 Proposed Budget City of La Habra Heights All Funds Summary FY 2025-26 Summary of Sources and Uses by Fund Estimated Fund Estimated Fund Estimated Transfers Estimated Transfers Balance at Balance at Revenues In Expenditures Out 06/30/2025 06/30/2026 General Fund 101 Unassigned 1,850,507 6,423,863 160,000 5,556,960 642,346 2,235,064 Reserve Policy 3,500,000 3,500,000 Infrastructure 500,000 50,000 550,000 Roads & Storm Drains Equipment Replacement 550,000 50,000 600,000 Vehicles & Machinery Civic Facilities 400,000 50,000 450,000 City Hall, Fire Station, Gym & Park Accrued Leave Liability 50,000 50,000 Total General Fund 6,850,507 6,573,863 160,000 5,556,960 642,346 7,385,064 Special Revenue. Funds 200 ARPA 210 Gas Tax 268,130 171,499 179,500 260,129 215 RMRA - SB1 447,511 156,343 210,000 393,854 220 Prop A 217,691 148,661 36,000 330,352 221 Prop C 239,412 126,253 175,000 190,665 222 Measure M 232,412 107,590 167,163 172,839 224 Measure W 689,107 175,000 864,107 225 Measure R 237,169 95,815 150,000 182,984 226 Street District No. 7 861,049 396,966 917,619 340,396 228 AQMD 44,133 8,500 52,633 229 TDA Article 3 233 Recycling Grant 22,741 5,100 5,000 22,841 240 CDBG 124,643 124,643 260 Fire Fund 2,154,222 642,346 2,154,222 262 SLES 142,728 200,000 160,000 182,728 280 PEG 102,637 17,600 120,237 Total Special Revenue Funds 3,504,720 2,510,065 642,346 2,443,865 4,213,266 Total All Funds 10,355,228 10,462,055 802,346 9,836,107 642,346 10,498,829 1 City of La Habra Heights General Fund FY 2025-26 General Fund Summary 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Actual Actual Budget Amended Proposed Revenue Summary Property Taxes 2,561,716 2,592,329 2,685,088 2,691,389 2,799,126 Other Taxes 445,835 371,819 425,000 536,000 615,000 Development Fees 555,781 711,032 452,520 507,500 495,500 Fines and Forfeitures 33,056 31,386 42,000 42,000 40,000 Investment Earnings 613,868 239,274 300,000 300,000 200,000 Other Gov't Agencies 85,798 86,986 86,500 88,914 89,000 Miscellaneous Revenues 357,691 263,926 2,364,745 2,428,263 2,185,237 Total Revenue 4,653,744 4,296,751 6,355,853 6,594,066 6,423,863 Transfers In 150,000 150,000 160,000 160,000 160,000 Total Revenue & Transfers In 4,803,744 4,446,751 6,515,853 6,754,066 6,583,863 Expenditure: Summary City Council's Office 4,092 1,962 7,000 7,000 7,000 City Manager's Office 188,338 283,735 374,504 346,904 316,031 City Attorney 489,549 184,352 150,000 215,000 150,000 General Services 322,107 1,657,685 344,098 385,904 366,677 Public Safety 694,265 24,234 875,416 475,416 898,101 Finance 268,689 271,660 349,993 336,593 379,107 Community Development 619,913 521,967 608,478 555,778 654,953 Public Works 1,627,257 1,251,676 3,118,968 4,176,282 2,785,091 Total Expenditures 4,214,211 4,197,271 5,828,457 6,498,877 5,556,960 Transfers Out 179,597 683,765 526,975 543,775 642,346 Total Expenditures & Transfers Out 4,393,809 4,881,037 6,355,432 7,042,652 6,199,306 Revenue Over/(Under) Expenditures 409,936 (434,285) 160,421 (288,586) 384,557 Beginning Fund Balance 7,003,022 7,412,958 6,978,673 7,139,093 6,850,507 Ending Fund Balance 7,412,958 6,978,673 7,139,093 6,850,507 7,235,064 Summary By Function: Salaries & Benefits 980,244 1,023,278 1,274,004 1,203,008 1,361,348 Materials, Supplies, & Services 3,233,967 3,173,993 4,554,453 5,295,869 4,195,362 Transfers Out 179,597 683,765 526,975 543,775 642,346 Totals 4,393,809 4,881,037 6,355,432 7,042,652 6,199,056 2 City of La Habra Heights General Fund FY: 2025-26 Revenue and Expenditure Summary REVENUE SUMMARY Category Property Taxes 2,799,126 Other Taxes 615,000 Development Fees 495,500 Miscellaneous 2,514,237 Transfers In 160,000 Revenue Totals 6,583,863 Transfersl In 2% Miscellaneous Propertyl Taxes 38% 43% Development Fees 8% Other Taxes 9% a Property Taxes a Other Taxes a Development Fees a Miscellaneous T Transfers In EXPENDITURE SUMMARY Category City Council's Office 7,000 City Manager's Office 316,031 City Attorney 150,000 General Services 366,677 Public Safety 898,101 Finance 379,107 Community Development 654,953 Public Works 2,785,091 Transfers Out 642,346 Expenditure Totals 6,199,306 City Council's Office City Manager's Office 0% 5% General Services 6% Transfers Out... City Attomey Publics Safety 2% 15% Public Works 45% Finance 6% Community! Development 11% a City Council's Office a City Manager's Office a City Attorney a General Services IF Public Safety Finance a Community Development EF Public Works a Transfers Out REVENUE OVER/UNDER) EXPENDITURES 384,557 General Fund Revenue Revenue Detail FY 2025-26 With Five Year Projections 2%increase 2% Increase 2% Increase 2%Increase 2% Increase 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 Actual Actual Budget Amended Proposed Projected Projected Projected Projected Projected Secured Property Taxes 1,740,583 1,823,625 1,852,709 1,852,709 1,931,653 1,970,286 2,009,692 2,049,886 2,090,883 2,132,701 Unsecured Property Taxes 105,592 19,214 58,680 58,680 60,563 61,774 63,010 64,270 65,555 66,866 Property Tax In-Lieu of VLF 715,541 749,490 773,699 780,000 806,910 823,048 839,509 856,299 873,425 890,894 Property Taxes 2,561,716 2,592,329 2,685,088 2,691,389 2,799,126 2,855,109 2,912,211 2,970,455 3,029,864 3,090,461 Documentary Transfer Tax 50,608 40,096 50,000 50,000 45,000 45,900 46,818 47,754 48,709 49,684 Sales & Use Tax 47,411 42,627 45,000 45,000 45,000 45,900 46,818 47,754 48,709 49,684 Franchise Fees 181,807 180,064 190,000 281,000 354,000 361,080 368,302 375,668 383,181 390,845 Business License 9,577 11,506 10,000 10,000 11,000 11,220 11,444 11,673 11,907 12,145 Resource Extraction Tax 156,432 97,526 130,000 150,000 160,000 163,200 166,464 169,793 173,189 176,653 Other Taxes 445,835 371,819 425,000 536,000 615,000 627,300 639,846 652,643 665,696 679,010 Zoning & Variance Fees 113,009 64,315 55,000 60,000 60,000 61,200 62,424 63,672 64,946 66,245 Senate Bill 1473 20 37 20 Building Permits 199,477 277,759 200,000 200,000 225,000 229,500 234,090 238,772 243,547 248,418 Fire Sprinkler Permits 10,326 10,597 8,000 8,000 10,000 10,200 10,404 10,612 10,824 11,041 Other Building Permits 48,841 61,461 60,000 60,000 60,000 61,200 62,424 63,672 64,946 66,245 Grading Permits 2,309 45,244 3,000 3,000 3,000 3,060 3,121 3,184 3,247 3,312 Filming Permits 2,310 Building Plan Check 140,552 164,928 90,000 90,000 100,000 102,000 104,040 106,121 108,243 110,408 Fire Sprinkler Plan Check 2,475 3,401 3,000 3,000 4,000 4,080 4,162 4,245 4,330 4,416 Grading Plan Check 2,438 1,854 2,500 2,500 2,500 2,550 2,601 2,653 2,706 2,760 Other Plan Checks 832 1 1,000 1,000 1,000 1,020 1,040 1,061 1,082 1,104 Encroachment Permits 33,192 81,435 30,000 80,000 30,000 30,600 31,212 31,836 32,473 33,122 Development Fees 555,781 711,032 452,520 507,500 495,500 505,410 515,518 525,829 536,345 547,072 Citation Fees 10,203 253 12,000 12,000 14,000 14,280 14,566 14,857 15,154 15,457 Vehicle Code Fines 22,854 31,133 30,000 30,000 26,000 26,520 27,050 27,591 28,143 28,706 Fines and Forfeitures 33,056 31,386 42,000 42,000 40,000 40,800 41,616 42,448 43,297 44,163 4 Investment Earnings 613,868 239,274 300,000 300,000 200,000 204,000 208,080 212,242 216,486 220,816 Investment Earnings 613,868 239,274 300,000 300,000 200,000 204,000 208,080 212,242 216,486 220,816 Motor Vehicle License Fee 5,798 6,986 6,500 8,914 9,000 9,180 9,364 9,551 9,742 9,937 Funds Exchange (Prop A) 80,000 80,000 80,000 80,000 80,000 60,000 60,000 60,000 60,000 60,000 Other Gov't Agencies & Grants 85,798 86,986 86,500 88,914 89,000 69,180 69,364 69,551 69,742 69,937 Rentals & Leases 33,288 120,000 120,000 120,000 122,400 124,848 127,345 129,892 132,490 Park & Gym Rental Fees 26,183 37,107 30,000 30,000 30,000 30,600 31,212 31,836 32,473 33,122 Cellular Tower Rental Fees 46,326 75,151 76,126 76,871 79,417 81,005 82,625 84,278 85,963 87,682 Other Revenue 258,783 116,724 109,112 172,000 Administrative Fees 1,345 1,098 1,000 500 108,120 110,282 112,488 114,738 117,033 119,373 Sale of Copies/Publications 255 558 300 685 700 Refunds & Recovery 24,800 2,028,207 2,028,207 1,847,000 Miscellaneous Revenues 357,691 263,926 2,364,745 2,428,263 2,185,237 344,286 351,172 358,196 365,360 372,667 Transfers In 150,000 150,000 160,000 160,000 160,000 150,000 150,000 150,000 150,000 150,000 Transfers In 150,000 150,000 160,000 160,000 160,000 150,000 150,000 150,000 150,000 150,000 TOTALS 4,803,744 4,446,751 6,515,853 6,754,066 6,583,863 4,796,085 4,887,807 4,981,363 5,076,790 5,174,126 5 City of La Habra Heights Budget Detail FY 2025-26 City Council's Office = 110CCL 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Generall Fund Expenditures 6225 Printing Expense 126 500 500 500 6330 Travel, Conferences, & Meetings 1,590 826 5,000 5,000 5,000 6510 Special Departmental Expense 2,376 1,135 1,500 1,500 1,500 Total Expenditures - City Council's Office 4,092 1,962 7,000 7,000 7,000 Summary by Function: Salaries & Benefits Materials, Supplies, & Services 4,092 1,962 7,000 7,000 7,000 Totals 4,092 1,962 7,000 7,000 7,000 - 2 6 City of La Habra Heights Budget Detail FY 2025-26 City Manager's Office = 120MGR 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed General Fund Expenditures 6110 Salaries & Wages - Regular 117,142 164,500 195,802 160,802 178,272 17,470 6120 Wages Part-Time 4,622 51,293 19,277 79,277 20,390 (58,887) 6130 Overtime 373 3,214 2,000 3,000 2,500 (500) 6150 Retirement 39,961 38,950 54,463 54,463 60,906 6,443 6160 Life Insurance 67 95 176 176 160 (16) 6170 Medical/Dental nsurance 12,985 16,135 38,477 28,477 35,395 6,918 6195 Medicare 1,770 3,252 3,209 3,209 3,003 (206) 6225 Printing Expense 250 250 6240 Postage & Mailing 264 54 200 100 150 50 6250 Publications 3,912 2,078 3,700 3,700 2,000 (1,700) 6260 Dues & Memberships 225 811 1,000 1,000 1,305 305 6330 Travel, Conferences, & Meetings 489 90 3,000 1,500 3,000 1,500 6340 Training 552 685 2,000 2,000 2,000 6510 Special Departmental Expense 1,277 1,404 1,500 1,500 2,000 500 6540 Advertising & Legal Notices 2,559 1,174 4,000 2,000 4,000 2,000 6650 Professional Services 700 700 700 6930 Election Expense 2,140 45,000 5,000 (5,000) Total Expenditures - City Manger's Office 188,338 283,735 374,504 346,904 316,031 (30,873) Summary by Function: Salaries & Benefits 176,919 277,439 313,404 329,404 300,626 (28,778) Materials, Supplies, & Services 11,418 6,296 61,100 17,500 15,155 (2,345) Totals 188,338 283,735 374,504 346,904 315,781 (31,123) 7 City of La Habra Heights Budget Detail FY 2025-26 City Attorney = 140ATN 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed General Fund Expenditures 6695 Legal Services 489,549 184,352 150,000 215,000 150,000 (65,000) Total Expenditures - City Attorney 489,549 184,352 150,000 215,000 150,000 (65,000) Summary by Function: Salaries & Benefits Materials, Supplies, & Services 489,549 184,352 150,000 215,000 150,000 (65,000) Totals 489,549 184,352 150,000 215,000 150,000 (65,000) - - 2 8 City of La Habra Heights Budget Detail FY 2025-26 General Services = 150GSD 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed General Fund Expenditures 6150 Retirement 15,058 15,362 17,500 17,500 17,000 (500) 6170 Medical/Dental Insurance 6,579 6,395 8,500 6,500 6,263 (237) 6180 Workers' Compensation 12,116 6,875 15,286 16,786 20,097 3,311 6190 Unemployment Insurance 1,031 1,030 4,732 2,732 4,400 1,668 6210 Office Supplies 2,717 1,863 2,800 2,800 2,500 (300) 6225 Printing Expense 4,057 2,821 3,000 3,000 4,500 1,500 6235 Software 33,971 56,083 65,439 57,957 (7,482) 6240 Postage & Mailing 2,551 596 2,000 2,000 2,000 6255 Recruitment Costs 1,657 973 2,000 2,000 2,000 6260 Dues & Memberships 10,938 12,852 13,077 13,077 13,800 723 6310 IT Support/Help Desk 15,235 23,573 18,822 18,822 18,910 88 6320 Internet Services 12,701 14,001 19,252 19,852 18,155 (1,697) 6340 Training 750 450 500 500 500 6410 Telephone 6,901 6,866 7,117 7,117 7,050 (67) 6420 Utilities 23,379 24,111 22,000 30,000 25,575 (4,426) 6440 Tools & Equipment 989 10,000 10,000 10,000 6510 Special Departmental Expense 8,491 5,099 10,176 10,176 5,972 (4,204) 6540 Advertising & Legal Notices 342 6550 Operating Supplies 3,930 1,989 3,200 3,200 3,000 (200) 6612 General Insurance 79,017 80,755 93,527 95,527 113,501 17,974 6650 Professional Services 68,393 13,038 18,160 43,010 19,500 (23,510) 6710 Rental & Leases 12,109 10,851 14,366 14,366 12,397 (1,969) 6880 Matrix Oil Land Purchase 1,425,511 6955 Video Taping Svcs/Supplies 527 1,345 2,000 2,000 1,600 (400) Total Expenditures - General Serviçes 322,107 1,657,685 344,098 385,904 366,677 (19,227) Summary by Function: Salaries &Benefits 34,784 29,662 46,018 43,518 47,760 4,242 Materials, Supplies, & Services 287,324 1,628,023 298,080 342,386 318,917 (23,469) Totals 322,107 1,657,685 344,098 385,904 366,677 (19,227) 9 City of La Habra Heights Budget Detail FY 2025-26 Public Safety- 220PSD 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed General Fund Expenditures 6660 General Law Enforcement 679,697 850,416 450,416 872,101 421,685 6672 Animal Control Services 14,568 24,234 25,000 25,000 26,000 1,000 Total Expenditures - Public Safety 694,265 24,234 875,416 475,416 898,101 422,685 Summary by Function: Salaries & Benefits Materials, Supplies, & Services 694,265 24,234 875,416 475,416 898,101 422,685 Totals 694,265 24,234 875,416 475,416 898,101 422,685 - 2 10 City of La Habra Heights Budget Detail FY 2025-26 Finance = 310FIN 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed General Fund Expenditures 6110 Salaries & Wages - Regular 126,975 139,727 182,059 172,059 202,857 30,798 6120 Wages Part-Time 6130 Overtime 329 671 800 800 800 6150 Retirement 49,602 52,201 59,451 59,451 74,424 14,973 6160 Life Insurance 113 126 160 160 172 12 6170 Medical/Dental Insurance 14,142 17,657 28,799 26,799 32,940 6,141 6195 Medicare 1,940 2,163 2,694 2,694 3,104 410 6210 Office Supplies 293 464 500 400 400 6225 Printing Expense 578 54 500 700 510 (190) 6260 Dues & Memberships 275 335, 325 325 360 35 6330 Travel, Conferences, & Meetings 334 849 2,500 1,500 2,000 500 6340 Training 100 1,500 1,000 1,000 6510 Special Departmental Expense 19,015 22,273 25,005 25,005 16,340 (8,665) 6650 Professional Services 36,287 12,740 10,700 10,700 14,200 3,500 6690 Auditing 18,805 22,300 35,000 35,000 30,000 (5,000) Total Expenditures - Finance 268,689 271,660 349,993 336,593 379,107 42,514 Summary by Function: Salaries & Benefits 193,102 212,545 273,963 261,963 314,297 52,334 Materials, Supplies, & Services 75,587 59,115 76,030 74,630 64,810 (9,820) Totals 268,689 271,660 349,993 336,593 379,107 42,514 11 City of La Habra Heights Budget Detail FY 2025-26 Community Development = 410PLN 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed General Fund Expenditures 6110 Salaries & Wages - Regular 188,480 167,254 179,933 140,933 176,308 35,375 6120 Wages Part-Time 80,211 57,628 97,165 92,165 104,137 11,972 6130 Overtime 1,636 324 1,500 1,250 1,500 250 6150 Retirement 48,200 49,056 50,257 52,257 71,489 19,232 6160 Life Insurance 152 145 216 216 212 (4) 6170 Medical/Dental Insurance 32,719 27,366 62,194 27,194 65,084 37,890 6195 Medicare 3,917 3,281 3,838 3,838 4,105 267 6210 Office Supplies 2,831 1,912 3,000 1,500 2,000 500 6225 Printing Expense 4,146 2,825 5,000 4,000 4,500 500 6240 Postage & Mailing 549 600 1,200 1,200 1,200 6250 Publications 2,000 2,000 6260 Dues & Memberships 315 500 250 630 380 6330 Travel, Conferences, & Meetings 3,303. 2,000 500 1,500 1,000 6340 Training 500 500 500 6510 Special Departmental Expense 1,568 290 1,120 1,420 1,120 (300) 6540 Advertising & Legal Notices 8,640 983 2,500 1,000 2,500 1,500 6642 Building Plan Check Activity 117,891 112,986 80,000 90,000 95,000 5,000 6644 Additonal Plan Check Activity 32,421 27,229 35,000 30,000 32,000 2,000 6650 Professional Services 63,778 62,950 52,055 77,055 38,368 (38,687) 6695 Legal Services 28,896 7,037 30,000 30,000 50,000 20,000 6955 Video Taping Svcs/Supplies 260 100 500 500 800 300 Total Expenditures - Community Development 619,913 521,967 608,478 555,778 654,953 99,175 Summary by Function: Salaries & Benefits 355,315 305,055 395,103 317,853 422,835 104,982 Materials, Supplies, & Services 264,598 216,912 213,375 237,925 232,118 (5,807) Totals 619,913 521,967 608,478 555,778 654,953 99,175 12 City of La Habra Heights Budget Detail FY 2025-26 Public Works = 450PWD 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed General, Fund Expenditures 6110 Salaries & Wages Regular 140,708 121,574 146,959 147,959 164,540 16,581 6120 Wages Part-Time 6130 Overtime 9,224 6,768 2,000 5,000 2,000 (3,000) 6150 Retirement 52,987 45,804 57,702 59,702 66,021 6,319 6160 Life Insurance 168 122 168 168 176 8 6170 Medical/Dental Insurance 15,108 22,508 36,472 35,226 40,605 5,379 6195 Medicare 1,929 1,802 2,215 2,215 2,487 272 6250 Publications 155 155 6420 Utilities 32,507 35,715 37,080 37,080 39,905 2,825 6440 Tools & quipment 3,000 3,000 6510 Special Departmental Expense 13,089 2,355 2,000 2,000 2,000 6550 Operating Supplies 1,956 2,631 3,000 3,000 (3,000) 6610 Building/Grounds Maintenance 75,556 70,877 80,000 120,952 87,480 (33,472) 6615 Janitorial Services 14,203 18,405 24,540 24,540 24,540 6648 MS4 Monitoring 27,036 54,559 53,800 53,800 (53,800) 6650 Professional Services 147,479 117,451 116,160 116,160 112,832 (3,328) 6656 Storm Damage Repair 5,028 5,987 12,000 12,000 10,000 (2,000) 6657 Fallen Tree/Debris Removal 26,727 1,915 7,000 5,000 5,000 6722 Motor Vehicle - Maintenance 1,243 7,927 10,000 7,000 8,000 1,000 6724 Motor Vehicle - Gas & Supplies 6,102 3,860 5,000 5,000 5,500 500 6730 Equipment Maintenance 270 121 3,500 3,500 3,500 6820 Improvements to Buildings & Grounds 1,942 88,344 15,000 10,000 10,000 6830 Capital Improvement Projects 1,014,228 93,327 2,499,722 3,333,423 2,190,099 (1,143,324) 6850 CIP/FEMA - Storm Damage 509,688 187,407 (187,407) 6955 Video Taping Svcs/Supplies 750 750 6960 Tree Trimming 38,947 39,400 3,500 3,500 6,000 2,500 6965 Graffiti Removal 540 144 500 500 500 6966 Roads Advisory Committee 280 393 650 1,150 (1,150) Total Expenditures - Public Works 1,627,257 1,251,676 3,118,968 4,176,282 2,785,091 (1,391,191) Summary by Function: Salaries & Benefits 220,124 198,577 245,516 250,270 275,829 25,559 Materials, Supplies, & Services 1,407,133 1,053,099 2,873,452 3,926,012 2,509,261 (1,416,751) Totals 1,627,257 1,251,676 3,118,968 4,176,282 2,785,091 (1,391,191) 13 City of La Habra Heights American Rescue Plan Act Fund = 200 FY 2025-26 ARPA - 200ARP 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 1,042 23,099 38,729 22,735 Revenues 4510 Investment Earnings 22,057 (363) 5,000 10,000 (10,000) 4620 Grant Revenue 286,155 914,133 311,817 (311,817) Total Revenues 308,212 913,770 5,000 321,817 (321,817) Expenditures 6120 Wages Part-Time 41,152 6210 Office Supplies 6225 Printing Expense 6235 Software 27,655 123,760 8,742 (8,742) 6440 Tools & Equipments 5,845 108 8,729 8,729 (8,729) 6510 Special Departmental Expense 3,688 14,763 15,000 15,000 (15,000) 6550 Operating Supplies 6,468 2,167 6610 Building/Ground Maintenance 3,285 1,428 6,000 (6,000) 6615 Janitorial Services 8,687 2,044 6660 General Law Enforcement 768,641 20,000 283,346 (283,346) 6710 Rental & Leases 1,102 1,222 6820 Improvements To Bldg & Gnds 6830 Capital Improvement Projects 188,273 Total Expenditures 286,155 914,133 43,729 321,817 (321,817) Total Expenditures 286,155 914,133 43,729 321,817 (321,817) Net Change to Fund Balance 22,057 (363) (38,729) Ending Fund Balance 23,099 22,735 14 City of La Habra Heights Gas Tax Fund - 210 FY 2025-26 Gas Tax = 610GAS 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 108,313 71,523 111,610 200,131 268,130 Revenues 4510 Investment Earnings 3,304 8,586 3,500 10,000 8,000 (2,000) 4650 Gas Tax - 2103 42,668 46,767 50,225 50,225 51,453 1,228 4652 Gas Tax - 2105 26,421 31,230 35,114 35,114 35,992 878 4655 Gas Tax - 2106 21,189 22,095 24,564 24,564 24,932 368 4656 Gas Tax - 2107 39,882 42,123 47,988 47,988 49,122 1,134 4657 Gas Tax - 2107.5 2,000 2,000 2,000 2,000 2,000 4658 Gas Tax SB1 Loan Repayment 2,862 Total Revenues 138,326 152,801 163,391 169,891 171,499 1,608 Expenditures 6652 Road Maintenance 17,661 8,924 20,000 20,000 20,000 6654 Traffic Signal Maint/Sign Replace 7,154 10,751 16,000 15,892 13,000 (2,892) 6822 Drainage Channel Maintenance 300 4,518 6,000 6,000 6,500 500 6830 Captial Improvement Projects 150,000 125,000 60,000 140,000 80,000 Total Expenditures 175,115 24,193 167,000 101,892 179,500 77,608 Total Expenditures 175,115 24,193 167,000 101,892 179,500 77,608 Net Change to Fund Balance (36,790) 128,608 (3,609) 67,999 (8,001) (76,000) Ending Fund Balance 71,523 200,131 108,001 268,130 260,129 (76,000) 15 City of La Habra Heights Road Maintenance Rehabilitation Fund = 215 FY 2025-26 RMRA = 615RMR 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 253,994 223,838 238,156 397,693 447,511 Revenues 4510 Investment Earnings 8,250 16,477 5,000 10,000 8,000 (2,000) 4651 SB1 RMRA 2032 137,324 157,379 139,818 139,818 148,343 8,525 Total Revenues 145,574 173,856 144,818 149,818 156,343 6,525 Expenditures 6830 Captial Improvement Projects 175,730 190,000 100,000 210,000 110,000 Total Expenditures 175,730 190,000 100,000 210,000 110,000 Total Expenditures 175,730 190,000 100,000 210,000 110,000 Net Change to Fund Balance (30,156) 173,856 (45,182) 49,818 (53,657) (103,475) Ending Fund Balance 223,838 397,693 192,974 447,511 393,854 (103,475) - - -- 16 City of La Habra Heights Proposition A Fund - 220 FY 2025-26 Prop A = 620PRA 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 65,137 117,801 160,868 171,554 217,691 Revenues 4510 Investment Earnings 3,616 7,714 4,200 3,700 5,000 1,300 4660 Dial-A-Ride Fares 790 1,670 1,500 1,400 1,500 100 4680 Whittier Dial-A-Ride Grant 15 360 300 200 200 4681 Prop A Transit Tax 143,278 148,333 154,837 154,837 141,961 (12,876) Total Revenues 147,699 158,075 160,837 160,137 148,661 (11,476) Expenditures 6270 Prop A Fund Exchange 80,000 80,000 80,000 80,000 80,000 6670 Dial-A-Ride 15,036 24,322 18,000 34,000 36,000 2,000 Total Expenditures 95,036 104,322 98,000 114,000 116,000 2,000 Total Expenditures 15,036 24,322 18,000 34,000 36,000 2,000 Net Change to Fund Balance 52,664 53,753 62,837 46,137 32,661 (13,476) Ending Fund Balance 117,801 171,554 223,705 217,691 250,352 (13,476) 17 City of La Habra Heights Proposition C Fund = 221 FY 2025-26 Prop C = 640PRC 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 209,234 155,533 140,342 282,594 239,412 Revenues 4510 Investment Earnings 6,985 12,302 600 8,100 8,500 400 4682 Prop C Transit Tax 118,845 123,039 128,433 128,433 117,753 (10,680) Total Revenues 125,829 135,341 129,033 136,533 126,253 (10,280) Expenditures 6830 Captial Improvement Projects 179,530 8,280 200,000 179,715 175,000 (4,715) Total Expenditures 179,530 8,280 200,000 179,715 175,000 (4,715) Total Expenditures 179,530 8,280 200,000 179,715 175,000 (4,715) Net Change to Fund Balance (53,701) 127,061 (70,967) (43,182) (48,747) (5,565) Ending Fund Balance 155,533 282,594 69,375 239,412 190,665 (5,565) - - -- 18 City of La Habra Heights Measure M Fund - 222 FY 2025-26 Measure M = 632MSM 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 169,281 129,112 196,200 243,576 232,412 Revenues 4510 Investment Earnings 5,762 10,294 4,000 6,500 7,500 1,000 4676 Measure M Revenue 100,800 104,170 109,168 109,168 100,090 (9,078) Total Revenues 106,562 114,464 113,168 115,668 107,590 (8,078) Expenditures 6830 Captial Improvement Projects 146,731 148,000 126,832 167,163 40,331 Total Expenditures 146,731 148,000 126,832 167,163 40,331 Total Expenditures 146,731 148,000 126,832 167,163 40,331 Net Change to Fund Balance (40,169) 114,464 (34,832) (11,164) (59,573) (48,409) Ending Fund Balance 129,112 243,576 161,368 232,412 172,839 (48,409) - - - - 19 City of La Habra Heights Measure W Fund - 224 FY 2025-26 Measure W = 630MSW 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 499,019 674,107 689,107 Revenues 4510 Investment Earnings 8,991 4,000 15,000 10,000 (5,000) 4676 Measure W Revenue 665,116 165,000 165,000 Total Revenues 674,107 4,000 15,000 175,000 160,000 Expenditures 6648 MS4 Monitoring 24,385 24,385 6649 MS4 Consulting 40,000 40,000 6985 Safe Clean Water Total Expenditures 64,385 64,385 Total Expenditures Net Change to Fund Balance 674,107 4,000 15,000 110,615 95,615 Ending Fund Balance 674,107 503,019 689,107 799,722 95,615 L 2 20 City of La Habra Heights Measure R Fund - 225 FY 2025-26 Measure R = 631MSR 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 158,072 109,257 114,989 210,344 237,169 Revenues 4510 Investment Earnings 5,077 8,837 4,000 5,500 7,500 2,000 4676 Measure R Revenue 89,108 92,250 96,325 96,325 88,315 (8,010) Total Revenues 94,185 101,087 100,325 101,825 95,815 (6,010) Expenditures 6830 Capital Improvement Projects 143,000 150,000 75,000 150,000 75,000 Total Expenditures 143,000 150,000 75,000 150,000 75,000 Total Expenditures 143,000 150,000 75,000 150,000 75,000 Net Change to Fund Balance (48,815) 101,087 (49,675) 26,825 (54,185) (81,010) Ending Fund Balance 109,257 210,344 65,314 237,169 182,984 (81,010) - - -- 21 City of La Habra Heights Street Assessment District No. 7 Fund - 226 FY 2025-26 Street District No. 7 - 663RD7 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 720,007 423,893 402,965 877,712 861,049 Revenues 4180 District #7 Assessment Revenue 437,702 444,207 382,020 382,020 376,966 (5,054) 4510 Investment Earnings 21,332 34,637 23,900 23,900 20,000 (3,900) Total Revenues 459,034 478,844 405,920 405,920 396,966 (8,954) Expenditures 6830 Capital Improvement Projects 755,148 25,025 808,865 422,583 917,619 495,036 Total Expenditures 755,148 25,025 808,865 422,583 917,619 495,036 Total Expenditures 755,148 25,025 808,865 422,583 917,619 495,036 Net Change to Fund Balance (296,114) 453,819 (402,945) (16,663) (520,653) (503,990) Ending Fund Balance 423,893 877,712 20 861,049 340,396 (503,990) - - - - 22 City of La Habra Heights Air Quality Management District Fund - 228 FY 2025-26 AQMD = 630AQM 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 21,553 29,069 34,919 36,133 44,133 Revenues 4510 Investment Earnings 132 1,732 300 1,000 1,500 500 4660 AQMD Revenue 7,384 5,553 5,000 7,000 7,000 Total Revenues 7,516 7,285 5,300 8,000 8,500 500 Expenditures 6726 Vehicles 40,000 40,000 6830 Capital Improvement Projects 221 Total Expenditures 221 Total Expenditures 221 Net Change to Fund Balance 7,516 7,064 5,300 8,000 8,500 500 Ending Fund Balance 29,069 36,133 40,219 44,133 52,633 500 - 23 City of La Habra Heights Transportation Development Act Fund - 229 FY 2025-26 TDA = 651TDA 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance Revenues 4820 Bike & Pedestrain Safety Revenue Total Revenues Expenditures 6830 Capital Improvement Projects Total Expenditures Total Expenditures Net Change to Fund Balance Ending Fund Balance - a 24 City of La Habra Heights Recycling Payment Program Fund - 233 FY 2025-26 Recycling Grant = 680REC 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 15,755 16,440 16,640 17,291 22,741 Revenues 4510 Investment Earnings 685 851 400 450 100 (350) 4620 Grant Revenue 5,000 5,000 5,000 Total Revenues 685 851 5,400 5,450 5,100 (350) Expenditures 6955 Grant Expenditures 15,000 5,000 5,000 Total Expenditures 15,000 5,000 5,000 Total Expenditures 15,000 5,000 5,000 Net Change to Fund Balance 685 851 (9,600) 5,450 100 (5,350) Ending Fund Balance 16,440 17,291 7,040 22,741 22,841 (5,350) - - - - 25 City of La Habra Heights Community Block Grant Fund - 240 FY 2025-26 CDBG = 660CDB 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance Revenues 4620 Grant Revenue 30,000 30,000 124,643 94,643 Total Revenues 30,000 30,000 124,643 94,643 Expenditures 6830 Capital Improvement Projects 30,000 30,000 124,643 94,643 Total Expenditures 30,000 30,000 124,643 94,643 Total Expenditures 30,000 30,000 124,643 94,643 Net Change to Fund Balance Ending Fund Balance - a 26 City of La Habra Heights Fire Fund - 260 FY 2025-26 FIRE DEPARTMENT 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Fund Balance Revenues 4110 Secured Property Taxes 1,273,299 1,289,532 1,298,765 1,298,765 1,337,728 38,963 4620 Grant Revenue 62,161 88,517 2,148 4,500 2,148 (2,352) 4810 Rentals & Leases 18,000 18,000 18,000 18,000 18,000 4820 Other Revenue 159,214 20,579 1,033,895 1,033,895 (1,033,895) 4840 Oil Well Inspection Fees 88,043 62,731 4841 Brush Clearance Lien Revenue 29,350 21,175 55,000 85,000 110,000 25,000 4890 Fire/EMS Subscription 13,410 9,405 14,000 14,000 14,000 4892 Paramedic Recoveries 18,273 26,235 22,000 21,000 20,000 (1,000) 4894 Ambulance Patient Transport 9,837 5,629 11,000 9,000 10,000 1,000 5110 Transfers In 179,597 683,765 526,975 543,775 642,346 98,571 Revenue Total 1,851,183 2,162,837 3,044,514 3,027,935 2,154,222 (873,713) Fire Suppression - 710FIR 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Expenditures 6110 Salaries & Wages Regular 321,428 193,909 260,683 250,683 204,945 (45,738) 6120 Wages Part-Time 90,077 235,502 252,238 252,238 359,847 107,609 6130 Overtime 46,342 10,252 20,946 15,946 3,978 (11,968) 6150 Retirement 83,319 39,361 68,831 73,831 83,309 9,478 6160 Life Insurance 326 136 200 200 196 (4) 6170 Medical/Dental Insurance 43,528 48,531 57,008 45,008 40,028 (4,980) 6180 Workers' Compensation 79,962 70,205 100,887 101,087 132,642 31,555 6190 Unemployment Insurance 2,297 2,830 5,957 2,957 5,598 2,641 6195 Medicare 6,723 6,147 7,440 7,440 8,341 901 6199 Allocated Overhead 27,971 31,217 31,289 29,789 33,159 3,370 6210 Office Supplies 1,277 1,839 1,800 1,500 1,800 300 6225 Prinitng Expenses 1,736 994 2,300 2,300 2,000 (300) 6235 Software 7,124 4,431 15,431 18,956 3,525 6240 Postage & Mailing 115 105 150 150 150 0255 Recruitment Costs 10,000 11,000 6,000 (5,000) 6260 Dues & Memberships 3,200 3,200 3,200 3,200 4,000 800 6310 IT Support/Help Desk 15,591 21,287 18,822 18,822 18,910 88 6320 Internet Services 3,234 2,965 7,200 7,200 7,101 (99) 6330 Travel, Conferences & Meetings 334 1,833 2,500 1,500 3,000 1,500 6340 Training 3,531 6,895 7,000 5,000 7,000 2,000 6410 Telephone 11,582 11,553 11,977 11,977 12,599 622 6420 Utilities 21,231 23,795 23,000 23,500 24,880 1,380 6430 Tools & Equipment 1,053 4,966 8,500 8,500 5,000 (3,500) 6510 Special Departmental Expense 7,470 7,473 10,556 10,556 9,098 (1,458) 6520 OSHA Regulation Expense 49 5,302 5,000 13,000 5,000 (8,000) 27 6550 Operating Supplies 5,512 4,945 5,600 4,100 5,500 1,400 6610 Building/Grounds Maintenance 41,089 7,026 10,000 10,000 10,000 6612 General Insurance 85,543 78,345 90,996 92,996 113,501 20,505 6615 Maintenance/Radio Communications 3,645 1,204 5,000 5,000 7,080 2,080 6650 Professional Services 93,581 133,428 24,931 24,931 24,560 (371) 6695 Legal Services 88,488 42,117 35,000 10,000 25,000 15,000 6710 Rentals & Leases 9,046 7,904 2,900 2,900 2,622 (278) 6722 Motor Vehicle Maintenance 29,111 77,171 35,000 35,000 40,000 5,000 6724 Motor Vehicle - Gas & Oil 25,210 26,094 26,000 26,000 25,000 (1,000) 6726 Vehicles 1,033,895 1,033,895 (1,033,895) 6730 Equipment Maintenance 2,341 1,390 2,500 2,000 2,500 500 6740 Background Checks 14,385 15,541 6830 Capital Improvement Projects 41,105 6911 Uniform & Accessories 9,872 11,224 8,000 8,000 10,000 2,000 6912 Safety Equipment 61,130 1,000 4,500 2,000 (2,500) Total Expenditures - Fire Suppression 1,289,557 1,136,686 2,202,737 2,172,137 1,265,298 (906,839) Medical Emergency Services - 720EMS 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Actual Actual Budget Amended Proposed Variance Expenditures 6110 Salaries & Wages Regular 11,907 31,499 128,074 123,074 132,901 9,827 6120 Wages Part-Time 248,026 432,701 166,627 201,627 179,429 (22,198) 6130 Overtime 64 1,878 16,887 11,887 13,361 1,474 6150 Retirement 24,600 32,475 30,590 37,590 41,577 3,987 6160 Life Insurance 40 23. 120 125 140 15 6170 Medical/Dental Insurance 8,144 10,327 34,359 29,359 36,265 6,906 6180 Workers' Compensation 29,077 27,142 36,686 38,686 48,234 9,548 6190 Unemployment Insurance 2,276 2,766 7,819 2,819 7,740 4,921 6195 Medicare 4,382 6,794 4,274 5,274 4,642 (632) 6199 Allocated Overhead 28,004 32,186 31,289 29,789 33,159 3,370 6235 Software 4,800 5,250 450 6240 Postage & Mailing 1,432 1,773 2,100 1,803 2,100 297 6255 Recruitment Costs 5,000 5,000 6,000 1,000 6410 Telephone 931 955 1,200 1,200 2,141 941 6510 Special Departmental Expense 10,000 4,000 (4,000) 6550 Operating Supplies 25,380 30,840 25,000 35,000 30,000 (5,000) 6650 Professional Services 36,132 33,276 40,560 40,560 37,338 (3,222) 6740 Background Checks 6,406 4,553 6911 Uniform & Accessories 1,492 3,059 5,000 5,000 5,000 6912 Safety Equipment 1,000 500 2,500 2,000 Total Expenditures - Emergency Medical Services 428,291 652,245 546,585 578,093 587,776 9,683 Brush Clearance Program - 740BCP 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Expenditures 6110 Salaries & Wages Regular 49,844 86,844 87,736 87,736 6120 Wages Part-Time 78,391 71,365 77,184 32,184 22,516 22,516 6130 Overtime 1,000 1,000 1,300 1,300 6150 Retirement 7,018 6,766 9,669 11,669 8,800 8,800 28 6160 Life Insurance 80 120 104 104 6170 Medical/Dental Insurance 23,035 13,035 31,928 18,893 6195 Medicare 1,137 1,035 1,481 1,181 1,409 1,409 6225 Printing Expense 272 500 500 5,620 5,620 6235 Software 32,760 32,760 6240 Postage & Mailing 5,321 4,778 6,100 6,100 500 500 6255 Recruitment Costs 1,000 500 400 400 6410 Telephone 1,895 1,924 2,000 2,000 2,926 2,926 6435 IT Equipment 31,200 31,200 6510 Special Departmental Expense 1,412 174 2,100 1,600 1,500 1,500 6650 Professional Services 608 314 500 672 650 650 6724 Motor Vehicle Gas & Oil 2,308 2,610 3,000 3,000 3,000 3,000 6740 Background Checks 30 800 400 6920 Advertising & Legal Notices 442 249 700 700 6960 Brush Clearance Contractors 34,775 284,420 85,000 85,000 100,000 100,000 Total Expenditures - Brush Clearance Program 133,335 373,907 295,193 277,705 301,148 288,113 Total Expenditures 1,851,183 2,162,837 3,044,514 3,027,935 2,154,222 (609,043) Net Change to Fund Balance (264,670) Ending Fund Balance (264,670) - 2 29 City of La Habra Heights Supplemental Law Enforcement Services Fund - 262 FY 2025-26 SLES 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 67,409 87,085 125,245 129,652 142,728 Revenues 4510 Investment Earnings 4,405 6,408 4,000 4,500 5,000 500 4620 Grant Revenue 165,271 186,159 168,576 168,576 195,000 26,424 Total Revenues 169,676 192,567 172,576 173,076 200,000 26,924 Expenditures 7210 Transfers Out 150,000 150,000 160,000 160,000 160,000 Total Expenditures 150,000 150,000 160,000 160,000 160,000 Total Expenditures 150,000 150,000 160,000 160,000 160,000 Net Change to Fund Balance 19,676 42,567 12,576 13,076 40,000 26,924 Ending Fund Balance 87,085 129,652 137,821 142,728 182,728 26,924 - - - 30 City of La Habra Heights Public, Educational, & Gov't Grant Fund - 280 FY 2025-26 PEG 2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 Variance Actual Actual Budget Amended Proposed Beginning Balance 65,423 78,412 102,612 95,737 102,637 Revenues 4410 PEG Fees 2,727 4,463 13,900 13,900 13,600 (300) 4510 Investment Earnings 10,262 13,133 3,000 3,000 4,000 1,000 Total Revenues 12,989 17,596 16,900 16,900 17,600 700 Expenditures 6830 Capital Improvement Projects 271 10,000 10,000 (10,000) 6955 Grant Expenditures 20,000 20,000 Total Expenditures 271 10,000 10,000 20,000 10,000 Total Expenditures 271 10,000 10,000 (10,000) Net Change to Fund Balance 12,989 17,325 6,900 6,900 (2,400) (9,300) Ending Fund Balance 78,412 95,737 109,512 102,637 100,237 (9,300) - - 31 City of La Habra Heights AGENDA REPORT Meeting Date: April 21, 2025 1978 Agenda Item # 7 TO: Honorable Mayor and City Council FROM: Rafferty Wooldridge, City Manager BY: Angie Martinez, Finance Manager SUBJECT: REVIEW OF STRATEGIC PLANNING BACKGROUND Strategic is a widely recognized best practice for organizations of all types. It involves identifying broad goals, defining what success looks like, and setting a clear direction for the management team. Strategic planning plays a particularly important role, as elected officials are responsible for establishing priorities and goals for the organization. Once those priorities are set, city staff with work toward achieving them and delivering meaningful results for the community. An effective strategic planning process not only communicates the City Council's priorities to staff, but also helps council members align and reconcile their individual goals and visions for the city they serve. It also supports the city's leadership team by creating opportunities to share their expertise, sometimes offering insights into areas of concern, potential focus areas, and strategic solutions. This robust exchange ensures that city staff are aligned with the aspirations of the City Council and provides a clear roadmap for operational planning and budget priorities. Mission Statement The City of La Habra Heights is committed to preserving its unique community character and rural lifestyle, while providing high-quality, economical, and responsive services to its actively engaged residents. City staff is dedicated to operating as the most cost- effective small city government in the country. Vision Statement The City of La Habra Heights is a community dedicated to protecting, preserving, and enhancing its residential character and rural lifestyle. Core Values Integrity Practice transparency in all actions Be truthful and fair Act in the best interest of the community Service Exhibit pride in all that we do Anticipate and respond promptly to requests People Value and respect our residents Recognize that an engaged City workforce is key to delivering quality customer service Promote diversity as a strength Excellence Foster a high-performing organizational culture Establish clear standards and consistent, predictable processes Measure results and continuously seek improvement in all we do Goals and Work Plan 1. Protect, preserve, and enhance the residential rural character and individualistic lifestyle of La Habra Heights Manage a proactive Brush Clearance Program Conduct neighborhood traffic studies as needed Complete a Park Master Plan Update Establish a Capital Improvement Program (CIP) prioritization methodology that reflects community needs and available resources Develop an asset management program, including inventory tracking, maintenance plans, and replacement schedules Pursue code enforcement efforts to maintain community standards Continue MS4 outreach and improve stormwater and groundwater management Secure funding and implement road maintenance and repair projects 2. Enhance and maintain fiscal and organizational sustainability Adopt a timely and balanced budget Improve public access to information through the City website and social media Analyze contracts for potential cost savings Enhance revenues where feasible Update the User Fee Study and Cost Allocation Plan Evaluate and streamline City service delivery processes to reduce costs Provide monthly revenue forecasts to the City Council and residents Establish and implement budget and reserve policies Analyze alternatives for reducing PERS and OPEB liabilities Utilize the Investment Advisory Committee to help increase interest earnings Establish fiscally sustainable funding for road maintenance Pursue the GFOA Distinguished Budget Award and ACFR Certificate of Excellence 3. Maintain a safe La Habra Heights Law Enforcement Services Increase patrol and traffic enforcement efforts Develop a stronger partnership between the City and the L.A. County Sheriff's Department for contract oversight and safety initiatives Implement directed patrols as a targeted crime prevention strategy Recognize the accomplishments of individual deputies Strengthen patrol accountability measures Fire Department and EMS Services Adopt a Strategic Plan for the Fire Department Continue to pursue grant funding opportunities Complete improvements to the apparatus bay 4. Build a cohesive team comprised of City Council and Staff that provides clear and consistent direction and works together to provide core services Complete a strategic plan to define shared purposes and guiding principles Identify potential opportunities and threats impacting the City's future Plan and conduct workshops and study sessions to encourage in-depth dialogue and alignment Provide mid-year budget reports for transparency and course correction Update the User Fee Study and Cost Allocation Plan Explore additional initiatives as determined by need or City Council interest Achieve and maintain full staffing levels across all departments Develop a comprehensive training program, including: Identifying training opportunities through existing partnerships (e.g., CJPIA, Cal Cities) Establishing a mentorship program to support and onboard new employees RECOMMENDATION It is recommended that the City Council: A. Review and discuss the current Mission Statement and Goals and Strategic Work Plan; AND B. Review and discuss the proposed Vision and Values; AND C. Approve an organization-wide strategic plan with a Vision, Mission Statement, Values, and Goals and Work Plan for Fiscal Year 2025-26.