REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
PREPARED BY: Marissa Sur, Assistant City Manager
Subject:
title
Presentation of Finance Commission Subcommittee’s Review of Financial Impact of Proposed Police Officers Association (POA) Memorandum of Understanding (MOU) to the General Fund and Recommendations, and Staff Review of Long Range Financial Projections Including Labor Contracts, Unfunded Pension Liabilities, and Reserve Levels
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Statement of Issue:
At its August 18, 2026, meeting, City Council directed the Finance Commission to create a subcommittee to look into the financial impact of the MOU contract to the General Fund and provide options to avoid bankruptcy. City Council also directed the City Manager and CFO, in conjunction with the City Treasurer, to prepare a 5-10 year financial analysis of the city’s finances and bankruptcy risk in light of the POA MOU and other upcoming labor contracts, unfunded pension liabilities and reserve levels. They were also directed to prepare a series of financial options available for the City Council to avoid bankruptcy in the 5-10 year financial timelines.
Financial Impact:
Non Applicable - Administrative Item
Recommended Action:
recommendation
Consider information and recommendations presented by the Finance Commission Subcommittee and City staff.
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Alternative Action(s):
Do not approve recommended action and direct staff accordingly.
Analysis:
Background
At the August 18, 2026, meeting, City Council directed the Finance Commission to create a subcommittee to look into the financial impact of the MOU contract to the General Fund and provide options to avoid bankruptcy. City Council also directed the City Manager and CFO, in conjunction with the City Treasurer, to prepare a 5-10 year financial analysis of the city’s finances and bankruptcy risk in light of the POA MOU and other upcoming labor contracts, unfunded pension liabilities and reserve levels. They were also directed to prepare a series of financial options available for the City Council to avoid bankruptcy in the 5-10 year financial timelines. Direction was further given to return in two weeks with this information.
City Staff Items
A presentation titled FY 2026/27 General Fund Financial Discussion addressing the items City Council directed staff to review and prepare is included as Attachment 1 to this report.
Finance Commission Subcommittee
The Finance Commission selected Commissioners Geery, Pellman, and Boomgarden to serve on the subcommittee during the August 20 Special Meeting. Members of the subcommittee met with city staff on August 21 and August 24 to review relevant information in order to conduct their analysis. The Finance Commission is set to discuss the analysis and any findings and/or recommendations of the Subcommittee at their August 26 regular meeting; any approved presentation, findings and/or recommendations will be promptly attachment to this item by way of supplemental communication once received.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. FY 2026/27 General Fund Financial Discussion