Seal Beach council directs $9.3 million toward lifeguard headquarters; seeks more CIP detail before budget adoption

The Seal Beach City Council on May 2026 directed staff to show $9.3 million in the proposed FY 2026–27 budget for a new lifeguard headquarters and asked for more detailed capital improvement program (CIP) documentation before adopting the budget.

Councilmember Patty Senecal pressed the council to “find the additional money and fund $10,000,000” for the project, arguing that a fully funded start would slow runaway cost escalation. Senecal recommended reallocating identified CIP dollars, pausing a $250,000 facility assessment and placing the lifeguard sums in a dedicated account that would earn and retain interest for the project.

Staff said the city pools investments centrally and that interest is earned at the fund level, but Finance Director Barbara Arenado told council the interest attributable to an earmarked lifeguard account can be reported and allocated: “Our interest earnings are all in the same pot of money earning interest, but what happens right now is the general fund gets the interest. And what we could split that interest and work with our auditors to make sure that the amount that is specific for the pool will be focused on that area.”

Councilmembers Sarah Kalmick and Joe Kalmick (Councilmember Kalmick) and others indicated they preferred starting with the identified $9.3 million and pursuing any additional funds later in a measured way rather than rushing to reallocate critical dollars. City Manager Galligos said staff would move the identified amounts into the lifeguard headquarters CIP in the proposed budget and consult auditors about splitting interest earnings for reporting.

Mayor Landau asked staff for clarification on where the additional $700,000 could come from; staff suggested options such as deferring other CIP items or not proceeding with a pension paydown, but council did not pick a final source. Finance Director Arenado said she would, for the next budget update, show the $9.3 million reflected in the CIP portion of the budget book so the council could see the change.

Councilmembers also requested that staff place any lifeguard‑related fundraising receipts (for example, donations routed through a nonprofit) into the same CIP account if council later approves that transfer.

Why it matters: the lifeguard headquarters is a large capital project that council and community members described as a public‑safety priority. How the city sequences board decisions, debt, grants and donated funds will affect the project schedule and long‑term debt exposure.

What’s next: staff will show the $9.3 million allocation in the proposed budget book for the June 8 presentation and will consult auditors about interest reporting; several councilmembers asked that a detailed CIP package be available for council and public review on June 8 with budget adoption moved to June 27 if more time is required.