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HomeMy WebLinkAboutAGENDA REPORT 2025 0528 CCSA SPC ITEM 05AMOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Troy Brown, City Manager DATE: 05/28/2025 Special Meeting SUBJECT: Receive and Discuss City Manager’s Proposed Biennial Operating and Capital Improvements Budget for Fiscal Years 2025/26 and 2026/27 SUMMARY CITY MANAGER BUDGET MESSAGE I am pleased to present the Fiscal Year (FY) 2025/26 & 2026/27 Biennial Operating and Capital Improvement Projects Budget for your consideration. This proposed two-year budget marks the first time in the City’s history that a biennial financial plan has been developed. There are many benefits to adopting a two-year budget. First, a two-year budget enables the City to think strategically over a longer horizon, supporting better alignment with long-term goals and financial sustainability. The nature of a two-year budget positions the City Council and staff to see how programs are implemented through a wider lens and facilitates continuous improvement and evaluation of programs throughout the budget cycle. This approach also instills fiscal discipline in spending by promoting more orderly and predictable spending patterns. In addition, implementing a biennial budget will increase efficiencies and save valuable staff time compared to an annual budget. This is achieved by reducing the total time spent on the budget process, freeing up staff and elected officials to focus on implementation and other projects during the second year. Biennial budgets further streamline the review and approval process, allowing for more strategic use of the time among staff and the City Council. While biennial budgets require more effort upfront, the City Council and staff retain flexibility through mid-biennium reviews and adjustments, resulting in greater fiscal administration over the course of the biennial cycle. While the City manages over 41 funds, the General Fund (GF) is the most significant fund as it funds most of the City’s discretionary activities. The proposed biennial GF budget is balanced in both FY 2025/26 & FY 2026/27 with General Fund revenues projected to exceed General Fund expenditures in each year. Total appropriations in FY 2025/26 are $82,884,390 and $38,905,043 in FY 2026/27 excluding transfers out. A GF budget surplus of $319,953 is projected in year one, and a GF budget surplus of $1,216,667 is projected in year two of the biennial budget in the General Fund. Item: 5.A. 1 Honorable City Council 05/28/2025 Special Meeting Page 2 The City is in the midst of a growth spurt in residential and commercial development. The implementation of several projects bring revenue to a variety of special funds in the City to mitigate the impacts of the services and capital facilities needed to meet the demands of new residents and lessen impacts to existing residents. These revenues are one-time in nature for the City. The injection of revenues such as development impact fees, processing & inspection fees, and fees negotiated through Development Agreements will cease once these projects are complete. Fees from development related activities support the Community Development and Public Works departments that provide a variety of government services to bring projects online. The net impact of the influx of development fees results in a reduction to the GF subsidy for the Community Development fund (2200) and Engineering/PW fund (2205). Subsidies to these funds can cost the General Fund nearly $2.0 million each year. Although the projected GF subsidies are projected to remain flat or decrease over the two-year budget planning cycle, those revenues will end when the development concludes, resulting in more General Funds subsidies in subsequent years to Community Development and Public Works departments to support their activities. Public Safety remains the highest priority of the City. As evidenced in the 2024 Community Survey results, residents once again offered high safety ratings, as nearly all residents (98%) felt very or somewhat safe in their neighborhood during the day. When compared to national benchmarks a higher-than-average proportion of residents (98%) offered high marks for their overall feeling of safety in Moorpark. As the City anticipated the growth in residential and commercial units over the years, there have been discussions about adding a much-needed additional police beat to maintain the high level of police services offered through Ventura County Sheriff’s Office. The costs for a new police beat is approximately $1.5 million, which has remained out of financial reach for the City. No cost-of-living adjustments are included in the biennial budget, however as of the time of this writing the City will be underway in negotiating a new Collective Bargaining agreement with Service Employees International Union (SEIU) Local 721 on a new Memorandum of Understanding (MOU) addressing compensation and working conditions. The biennial budget continues to tell the story of the financial well-being of the City. The City has enjoyed a period of slow but steady growth over the years – with COVID-19 being the exception to that rule – and Moorpark’s story remains tethered to the broader national, state and regional economy. The tethering of the broader economy to Moorpark’s economy is a telltale sign that leads to a domino effect on our local economy. Put plainly, if the nation, state or county experiences a “cough” Moorpark gets a “cold.” The following offers a look at the economic strength of the broader economies. National Economy Overview Nationally, the US economy experienced a contraction in the first quarter of 2025, with Gross Domestic Product (GDP) shrinking at a 0.3% annual rate. This is down from growth of 2.4% in the final three months of 2024 as reported by the U.S. Commerce Department on April 20, 2025. This is the first contraction since the early stages of the COVID-19 pandemic when GDP continually decreased from February to April 2020. 2 Honorable City Council 05/28/2025 Special Meeting Page 3 Several factors are driving the national economic slowdown. The most broadly discussed impacts focuses on President Trump’s tariff announcements which have increased economic policy uncertainty. The announcement of the tariffs had immediate impacts on stock markets which experienced significant declines initially. The Dow Jones, NASDAQ and S&P 500 all declined during the 1st Quarter of 2025 but have rebounded as tariff amounts have been rolled back on certain countries and certain items. As stocks and bonds become more volatile, so do investment returns for the City’s portfolio. Higher than anticipated interest earning on investments have had a notable impact on the City’s budget as the return have outpaced assumptions for the past two fiscal years. The same holds true for household incomes. Many homes and businesses are leveraged – by one way or another – on stocks and bonds. For households, many Americans rely on strong performance of stocks and bonds which provides a source of financial security through retirement. For corporations, higher dividends lead to growth and expansion of their companies which enable millions of employees to consume at higher rates. Uncertainty can depress economic activity by prompting firms and households to postpone investment, hiring, and consumption decisions. Other key economic indicators also show mixed signals: while the Consumer Price Index (CPI) decreased by 0.1% in March, the Producer Price Index - Final Demand also decreased by 0.4%. The unemployment rate remains at 4.2%. However, personal income increased by $116.8 billion in March. The CPI falling by 0.1% in March 2025 suggests that consumer prices may have decreased slightly. The 0.4% decline in the Producer Price Index in March 2025 suggests prices at the producer level may also have decreased. Recent reports from the Port of Los Angeles indicate the west coast’s largest port is “…expecting a 35% drop in imports during the first week of May, year over year,” according to Port Executive Director Gene Seroka. The 1st Quarter report from the U.S. Department of Commerce could cross signals for the Federal Reserve which might push the central bank to consider lowering interest rates, while inflation readings could give policymakers pause as they work to keep inflation at bay. Another major challenge coming from Washington, D.C. involves uncertainty around grant funding. The Federal Government provides critical funding for countless programs in a variety of ways. At-risk are entitlement funds apportioned to states, counties and cities based on population. These funds in the form of grants, subventions, and other sources are revenues states, counties and cities rely on for services. The U.S. Government has undergone a monumental evaluation of each of its precious dollars to address a burgeoning U.S. National debt which as of early May 2025, stands at $36.2 trillion. This debt amount now exceeds the size of the US economy with a debt-to-GDP ratio of approximately 122%. State of California Economic Overview In the backdrop of the broader macroeconomic and political environment, California’s economy remains tenuous. Financially, many aspects of the state are performing well and the economy recently ranked as the 4th highest in the world. However, there are signs of caution looking ahead. Shortages in labor and housing production could present challenges for the states bottom line in the near term. 3 Honorable City Council 05/28/2025 Special Meeting Page 4 In May 2025, the Public Policy Institute of California noted that “since January, California has lost 33,000 jobs. Hiring by California’s employers has been slowing for some time. Although job growth coming out of the pandemic in 2021 and early 2022 far exceeded typical rates, by mid- 2022, California employers were adding fewer jobs by percentage than US employers. That pattern has held for over two years, with slower job growth in California and even some months of job loss for the state.” Although there has been a strong resurgence of jobs in California with 194,000 jobs added since September 2022, certain sectors have experienced job declines. The more notable sectors experiencing job losses since 2022 include business and information services, high tech, and the movie industries, which are 15% and 4% smaller than they were three years ago, respectively. Finally, housing production continues to wane in the state with no real answer for addressing affordability in the near future. Governor Gavin Newsom released the May Revision to his proposed FY 2025/26 California state budget on May 10, 2025, which projects a $44.9 billion shortfall, or a $27.6 billion shortfall, when taking into account early budget action taken by the legislature in April to reduce the shortfall by $17.3 billion. The assumptions in the May Revision are much more pessimistic than the initial January budget release, as expected. Some of the assumptions in the May revise are listed below: • US GDP growth has been downgraded by 0.7% in 2025 and by 0.3% in 2026. Job growth upgraded by 0.1% in 2025, but downgraded by 0.3% in 2026. • US unemployment rate higher by 0.3% (to 4.4% in 2025 and 4.9% in 2026). • Wage and salary growth estimates downgraded due to losses in bonuses and stock options, as tariffs make businesses less profitable. • US corporate profit growth changed from +0.7% to -7.9%. CA corporate profit growth changed from +4.0% to -2.0%. • Inflation projection for 2025 increased from 3.0% to 3.7%. • Housing starts are reduced downward from 112,300 to 100,600, due largely to high interest rates. The Governors proposed FY 2025/26 budget calls for total expenditures of approximately $322.0 billion, and $229.0 billion for the state’s GF. This represents a 1.4% general fund decrease compared to 2025 spending levels. While the state budget footing remains sound and maintains California’s financial position among the leading economies in the world, there is caution surrounding the projected growth trajectory that was initially contemplated. Ventura County Economic Overview Economic strength in Ventura County has historically lagged major economic indices within the six-county Southern California Association of Government (SCAG) region comprised of Los Angeles, San Bernardino, Riverside, Orange, Imperial and Ventura counties. This economic lag is primarily driven by a lack of housing which stymies population growth, stagnant household income growth and a weak labor market to support the local economy. 4 Honorable City Council 05/28/2025 Special Meeting Page 5 According to the 2025 Ventura County Economic Forecast, “total economic activity (GDP) in Ventura County has declined in 9 of the past 16 years. While the county’s real GDP grew weakly in 2023, total economic activity currently sits 9 percent below the peak in 2007.” The forecast further notes that specifically in 2023, “Ventura County’s GDP grew by a relatively slow 0.7 percent, whereas the overall U.S. economy expanded by 2.9 percent.” The slow growth in GDP can be attributed to weak growth in the non-farm job sector as well as a low mix of job sectors in the region. Ventura County jobs are highly concentrated in the Education and Health Services sectors which experienced 22,600 new jobs from 2007 to 2023. Housing costs remain a cornerstone in the region’s economy. The Center for Economic Research and Forecasting (CERF) 2025 Economic Forecast anticipates an overall 11% housing price increase from 2024 to 2027. As with any region, housing costs drive economic activity. The report juxtaposes the county against those regions where housing costs are attainable. In the analysis where home prices are attainable, population, businesses, and job sectors tend to grow. Where housing costs absorb significant portions of annual household income (>40%) domestic migration out of the region occurs, which drastically impacts household income, local revenues and a regions GDP suffers. Average annual real GDP growth for Ventura County peaked in 2007 and has been in a state of contraction of 0.6 percent in the years since. As with previous years, CERF’s forecast is computed under the assumption that the Ventura County environment will not change materially, and the residential home development rate will remain low, which indicates Ventura County’s housing affordability crisis will continue. 5 Honorable City Council 05/28/2025 Special Meeting Page 6 These factors imply that the County will not be competitive in attracting companies and households relative to other counties in the region. CERF implies ongoing job growth fueled by relatively low-salary sectors, especially Education and Healthcare are expected to perpetuate Ventura County’s jobs-housing mismatch for the next few years. Moorpark Economy Overview As previously mentioned, the City of Moorpark is in the midst of a period of growth. Several long- awaited projects are currently under development which injects revenue into the city. Projects such as Beltramo Ranch, High Street Depot, Vendra Gardens, and Hitch Ranch are temporarily buoying the City’s finances in the short term. Revenues from these projects in the form of fees through plan review, inspections, condition compliance, and impact and processing fees all play a significant part in the City’s budget. The City is in need of adding units to its housing stock. The average median price of a home has risen from $921,500 in the first quarter of 2022 to $1,045,000 in the first quarter of 2025. Not until recently has the City made significant progress on adding residential units to its housing stock. The below table highlights the number of residential building permits issued since 2020. The current residential growth spurt is evidenced in the table which began with earnest in 2024. Given the notorious supply and demand economic ideology, continued efforts here should make home ownership more attainable for Moorpark residents in the coming years. Year No. of New Residential Building Permits Issued 2024 296 2023 12 2022 14 2021 15 2020 98 While any new residential units are welcomed, even when fully occupied projects come online, resources for services are not commensurate with costs of providing those services as the City only receives a small portion ($0.8) of every property tax dollar. This downward pressure on housing costs is forcing younger families out of our communities in search of affordable housing. When this occurs, the City loses valuable income, knowledge and vital employment opportunities which could be held by residents. In addition, the multiplying factor of income spent on goods and services leaves with these residents. New businesses are opening as well. In FY 2024/25 approximately 42 new commercial based- businesses opened in Moorpark. These businesses provide vital sales and property taxes that enable the City to sustain municipal services for all residents. The City’s economic base is strong, with low vacancy rates in both industrial and commercial spaces. This is very different from 10 years ago when vacancy rates in commercial buildings were high. Residents then noted their concerns about boarded up businesses and the lack of viable dining and shopping opportunities. 6 Honorable City Council 05/28/2025 Special Meeting Page 7 Biennial Budget Revenue Overview Total Revenues for the City come from many sources. In addition to receiving funds from other governmental agencies to support maintenance activities for streets and roads (as an example), the City also receives grants and special revenues that are restricted for a variety of purposes. We are not anticipating any increases from other governmental agencies and Other Revenues are projected to grow modestly at the same pace as the Consumer Price Index. Given the uncertainty in the short-midterm horizon of the economy, a conservative approach for projecting revenues was used. Total revenues are projected at $50,680,966 in FY 2025/26 and $50,878,530 for FY 2026/27. General Fund revenues over the two-year period are projected at $25,825,302 and $25,931,452 respectively. The largest sources of General Fund revenues are sales and property taxes which are described in greater detail later in this report. Biennial Budget Expenditure Overview The City uses a contract model to provide a variety of municipal services with City staff overseeing the management and day-to-day operations of the City. This contract model provides for flexibility in meeting workload demands as well as helping to control costs. The City has a track record of being diligent in maintaining service levels on contracted public services, with the exception of public safety, which is the largest General Fund expense for the City and has experienced cost increases that consistently outpace the CPI. The larger increases in public safety costs are generally associated with new tools and technologies being implemented in the Ventura County Sheriff’s Office (VCSO), and an effort by the department to bring personnel salaries to market with other comparable agencies to address challenges with recruitment and retention of personnel. Total proposed expenditures in the annual budget and operating plan reflects the City’s commitment to constructing a number of capital improvement projects and providing services through the contract model. The new library and inclusive playground projects are estimated to cost over $32.1 million collectively, with the new library representing the lion share of capital expense at an estimated total cost of $29.8 million. Total expenditures are projected at $82,884,390 in FY 2025/26 and $38,905,043 for FY 2026/27. General Fund expenditures over the two-year period are projected at $22,076,545 and $21,426,050 (excluding Transfers Out) respectively. The largest expenses for the City are indicative of the ongoing investment in capital improvements as indicated in the below charts. 7 Honorable City Council 05/28/2025 Special Meeting Page 8 Salaries and Benefits, $10,905,500 , 13% Service and Supplies, $21,496,925 , 26% Utilities, $1,949,900 , 2% Intergovernmental, $2,659,300 , 3% Capital, $44,562,647 , 54% Debt Service, $1,310,118 , 2% FY 2025-26 RECOMMENDED BUDGET EXPENDITURES Salaries and Benefits, $11,294,300 , 29% Service and Supplies, $21,513,520 , 55% Utilities, $1,901,100 , 5% Intergovernmental, $2,517,850 , 7% Capital, $371,930 , 1% Debt Service, $1,306,343 , 3% FY 2026-27 RECOMMENDED BUDGET EXPENDITURES 8 Honorable City Council 05/28/2025 Special Meeting Page 9 General Fund Revenues Revenue growth is relatively flat in the General Fund with $25,825,302 in revenues to support $22,076,545 in expenditures in FY 2025/26 and $25,931,452 in revenues to support $21,426,050 in expenditures in FY 2026/27 before transfers out. Charges for Service, Fines, Fees 4018952 16%Franchise 1661300 6%Grants/Donation 214800 1% Intergovernmental 2329900 9% Miscellaneous 290350 1%Property Taxes 12135000 47% Sales & TOT 5175000 20% FY 2025/26 RECOMMENDED -GENERAL FUND REVENUE $25,825,302 Charges for Service, Fines, Fees 3885902 15% Franchise 1673300 7%Grants/Donation 163700 1%Intergovernmental 2408200 9% Miscellaneous 290350 1%Property Taxes 12260000 47% Sales & TOT 5250000 20% FY 2026/27 RECOMMENDED -GENERAL FUND REVENUE $25,931,452 9 Honorable City Council 05/28/2025 Special Meeting Page 10 Property Taxes Secured Property Taxes are estimated to be $4.9 million in FY 2025/26 and $5.0 in FY 2026/27, which represents a flat assessment over the fiscal year estimates. On a positive note, the City has regained all of the assessed values of real property which declined during the years of the Great Recession (2009-2013). The below chart depicts the City’s actual property tax receipts since FY 1999/2000 and projects anticipated revenues through FY 2026/27. Property tax growth has been strong over the past three fiscal years and revenues are now consistently above pre-recession levels. On average, the City can expect to receive only a total of $0.091(including Vector Control) from every property tax dollar collected for real property in the City. Property tax revenues are distributed to a number of other governmental agencies for a variety of services to support residents needs such as: schools, county services and fire protection to name a few. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 19 9 9 - 0 0 20 0 0 - 0 1 20 0 1 - 0 2 20 0 2 - 0 3 20 0 3 - 0 4 20 0 4 - 0 5 20 0 5 - 0 6 20 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 20 0 9 - 1 0 20 1 0 - 1 1 20 1 1 - 1 2 20 1 2 - 1 3 20 1 3 - 1 4 20 1 4 - 1 5 20 1 5 - 1 6 20 1 6 - 1 7 20 1 7 - 1 8 20 1 8 - 1 9 20 1 9 - 2 0 20 2 0 - 2 1 20 2 1 - 2 2 20 2 2 - 2 3 20 2 3 - 2 4 20 2 4 - 2 5 E s t . 20 2 5 - 2 6 R e c o m 20 2 6 - 2 7 R e c o m 25-Years Property Tax History Secured Unsecured 10 Honorable City Council 05/28/2025 Special Meeting Page 11 Sales Taxes Sales taxes are the other major contributor to the City’s General Fund to support services. Sales taxes are derived from local companies and businesses who sell their goods in Moorpark to residents, visitors and other businesses. This is one of the more volatile sources of revenue for the City and sales taxes can vary year-over-year dependent upon several economic conditions. On the consumer side, sales taxes are dependent consumer confidence; higher consumer confidence generally leads to greater spending. As previously mentioned, current economic growth in the country is continuing and is projected to soften, although in Ventura County growth is being tempered by relatively modest job growth and being stymied by the lack of housing to accommodate all economic levels of the region. Sales taxes waned significantly during the COVID-19 Pandemic but have surpassed pre- pandemic levels. Due to its volatility this trend should not viewed as a reliable source of continued growth. However, the City is continuously seeking out opportunities to attract new point-of-sale businesses to the community in hopes of improving dining and shopping opportunities, as well as 11 Honorable City Council 05/28/2025 Special Meeting Page 12 bringing in much needed sales taxes to continue to meet the high service demands staff and residents have come to expect from the City. Sales taxes alone are budgeted to total $4.7 million in FY 2025/26 and 4.8 million in FY 2026/27. When coupled with the sales tax in lieu of property tax amount and Transient Occupancy taxes, these amounts total $5.2 million and $5.3 million respectively. While volatile in nature, sales taxes in the City continue a growth trajectory, highlighting the need for a strategic focus on business attraction toward businesses that add point-of-sale transactions to the city’s portfolio. 10-YEAR LONG TERM FINANCIAL PLAN Per the direction of the City Council, a Long-term Financial Plan (LTFP) has been adopted and incorporated into the budget to provide more focus and attention on the overall long-term fiscal sustainability of the City. The goal of the LTFP is to serve as a proactive tool to ensure long-term efficient and effective management of City services, finances, operations, and capital improvement projects. In addition, the LTFP will serve as a budget model for the General Fund in its forecasting of revenues and expenditures over a 10-year period. When all the assumptions are aggregated using the estimated budget for FY 2024/25 and the recommended budgets for FY 2025/26 and FY 2026/27 as the bas, the model extrapolated anticipated revenues and expenditures over a 10-year period based on historical growth trend. The results of the straight-line projections of the LTFP are graphically depicted below. Presuming the assumptions manifest themselves over the next 10 years as projected in the LTFP, in FY 2029/30 the City’s expenditures will exceed resources resulting in an ongoing structural deficit for the City. $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Th o u s a n d s Sales Tax FY 2009/10 -2026/27 Sales Tax Sales Tax in Lieu Transient Occupancy Tax 12 Honorable City Council 05/28/2025 Special Meeting Page 13 This is an improvement over the LTFP projections of FY 2024/25 which projected a structural deficit in FY 2027/28. This change is the direct result of higher-than-anticipated investment returns which generate approximately $700,000 in additional income each FY; lower contributions to CalPERS costs resulting from the City’s one-time payment of $3.5 million to pay down its unfunded liability; and reduced contribution to Capital Improvement projects. In addition, the reduction in GF subsidies for Community Development and Public Works also play a role. Although this is good news, the City must remain vigilant in cost containment over the next several years and work to identify additional sources of revenue to maintain existing service levels. Proposed Budget Augmentations Only one budget augmentation is proposed over the proposed two-year budget cycle. The position is an additional Deputy Sheriff to serves as Downtown Liaison Deputy for the new invigorated Downtown area. The Moorpark Downtown Liaison Deputy position will be a uniformed patrol deputy position assigned to an 84-hour biweekly shift. The position will be a non-backfill position. Put another way, during the assigned deputy's scheduled days off there will not be a deputy assigned to fill the patrol shift. Further, this means the patrol shift will not have 24/7 coverage which is acceptable as the position is not designed to serve as an additional patrol beat within the City of Moorpark. However, deputies could be assigned to work this position on overtime based upon need (for example, holidays and planned events). The estimated annual cost for the additional position would be $383,350. This cost includes the deputy allocation, a Body Worn Camera (BWC), Taser, cellular phone, patrol vehicle (including fuel and mileage), Mobile Data Terminal (MDT), and Fleet 3 camera system (for the patrol unit). 13 Honorable City Council 05/28/2025 Special Meeting Page 14 The primary duties of this position will be to engage with the businesses and residents within the Moorpark's downtown area. The deputy will also be available to respond to calls for service throughout the city on a needed basis (for example, emergency calls for service and when other patrol deputies are unavailable to respond). The assigned patrol shift will be from 10 a.m. to 10 p.m. on Thursdays, Fridays and Saturdays, with an additional 12-hour shift once every two weeks on either Wednesday or Sunday depending on workload, call volume and the need to address potential issues. The goal of this position is to provide the business owners and residents located within the downtown area a direct point of contact with the Moorpark Police Department for any public service needs. Conclusion The presentation of the Two-Year Operating and Capital Improvement Projects Budget is the compilation of many hours of work throughout every department of the organization. The proposed budget continues progress on a number of important initiatives, enhances existing public safety levels, and allocates sufficient funding to sustain current service levels across the organization. I would like to thank the City Council for your continued efforts in fiscal stewardship and for maintaining your commitment to fiscal sustainability while meeting the high service demand expectations of residents. Each of you are passionate about the community and committed to the City in ways far beyond what is expressed in the budget. I would also like to thank and recognize each member of the City’s budget team including Hiromi Dever and Gilbert Punsalan for the long hours and hard work they have done in coordinating the budget process and developing the budget. In addition, I would like to thank the Leadership Team, and especially Jeremy Laurentowski, Christopher Ball, and Daniel Kim for their work in preparation of the Five-Year Capital Improvement Projects Plan. Finally, I would like to thank each of you for allowing me to be a part of this wonderful community over the past seven years. Serving as your City Manager has been the highlight of my municipal career. As I embark on my retirement and reflect on my time with the City, I am proud to have been a part of implementing the vision set forth by the City Council. It has truly been an honor to work with each of you. The unwavering confidence and trust you have placed in me reflects your leadership and dedication to the Council-Manager form of government. It is through this collaborative spirit that enables your staff to effectively address the challenges facing our city and work towards a brighter, more prosperous future for all residents. I deeply appreciate your commitment and partnership in guiding the City forward into a better future. Respectfully Submitted, Troy Brown City Manager 14 Honorable City Council 05/28/2025 Special Meeting Page 15 Refer to the City Manager’s Draft Recommended Budget binder previously distributed to the City Council on May 15, 2025. The proposed budget is posted to the City’s website at: www.moorparkca.gov/RecommendedBudget2025-2027 STAFF RECOMMENDATION Discuss the proposed budget for Fiscal Years 2025/26 and 2026/27. 15