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Home My WebLink About05192022 CC Agenda - Budget WorkshopIn compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35 .102.35.104 ADA Title II]. AGENDA TEMECULA CITY COUNCIL BUDGET WORKSHOP CONFERENCE CENTER 41000 MAIN STREET TEMECULA, CALIFORNIA MAY 19, 2022 - 9:00 AM CALL TO ORDER: Mayor Matt Rahn FLAG SALUTE: Mayor Matt Rahn ROLL CALL: Alexander, Edwards, Rahn, Schwank, Stewart PUBLIC COMMENTS - NON-AGENDA ITEMS A total of 30 minutes is provided for members of the public to address the City Council on matters not listed on the agenda. Each speaker is limited to 3 minutes. Public comments may be made in person at the meeting by submitting a speaker card to the City Clerk or by submitting an email to be read aloud into the record at the meeting. Email comments must be submitted to CouncilComments@temeculaca.gov. Speaker cards for in-person comments will be called in the order received by the City Clerk and then, if time remains, email comments will be read. Email comments on all matters must be received prior to the time the item is called for public comments. All public participation is governed by the Council Policy regarding Public Participation at Meetings adopted by Resolution No. 2021-54. JOINT MEETING OF CITY COUNCIL, TEMECULA COMMUNITY SERVICES DISTRICT AND SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY BUSINESS Any member of the public may address the City Council on items that appear on the Business portion of the agenda. Each speaker is limited to 5 minutes. Public comments may be made in person at the meeting by submitting a speaker card to the City Clerk or by submitting an email to be read aloud into the record at the meeting. Email comments must be submitted to CouncilComments@temeculaca .gov. Speaker cards for in-person comments will be called in the order received by the City Clerk and then, if time remains, email comments will be read. Email comments on all matters must be received prior to the time the item is called for public comments. All public participation is governed by the Council Policy regarding Public Participation at Meetings adopted by Resolution No . 2021-54. 1.Review Fiscal Years 2023-27 Capital Improvement Program (CIP) and Review Fiscal Year 2022-23 CIP and Annual Operating Budgets for the City of Temecula, the Temecula Community Services District (TCSD) and the Successor Agency to the Temecula Redevelopment Agency Page 1 City Council Agenda May 19, 2022 (SARDA) That the City Council/Board of Directors review and discuss the Proposed Fiscal Years 2023-27 Capital Improvement Program (CIP) and Review Fiscal Year 2022-23 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District (TCSD) and the Successor Agency to the Temecula Redevelopment Agency (SARDA). Recommendation: Agenda Report Transmittal Message FY2022-23 Proposed AOB FY2023-27 Proposed CIP Budget Attachments: ADJOURNMENT The next regular meeting of the City Council will be held on Tuesday, May 24, 2022, at 4:30 p.m., for a Closed Session, with regular session commencing at 6:00 p.m., at the Council Chambers located at 41000 Main Street, Temecula, California. NOTICE TO THE PUBLIC The full agenda packet (including staff reports, public closed session information, and any supplemental material available after the original posting of the agenda), distributed to a majority of the City Council regarding any item on the agenda, will be available for public viewing in the main reception area of the Temecula Civic Center during normal business hours at least 72 hours prior to the meeting. The material will also be available on the City's website at TemeculaCa.gov. and available for review at the respective meeting. If you have questions regarding any item on the agenda, please contact the City Clerk’s Department at (951) 694-6444. Page 2 Item No. 1 CITY OF TEMECULA / TEMECULA COMMUNITY SERVICES DISTRICT / SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: FROM: City Council/Board of Directors Aaron Adams, City Manager/General Manager/Executive Director DATE: May 19, 2022 SUBJECT: Review Fiscal Years 2023-27 Capital Improvement Program (CIP) and Review Fiscal Year 2022-23 CIP and Annual Operating Budgets for the City of Temecula, the Temecula Community Services District (TCSD) and the Successor Agency to the Temecula Redevelopment Agency (SARDA) PREPARED BY: Jennifer Hennessy, Director of Finance/Treasurer RECOMMENDATION: That the City Council/Board of Directors review and discuss the Proposed Fiscal Years 2023-27 Capital Improvement Program (CIP) and Review Fiscal Year 2022-23 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District (TCSD) and the Successor Agency to the Temecula Redevelopment Agency (SARDA). DISCUSSION: Each year, the City Council holds a Budget Workshop in which staff presents the Five -Year Capital Improvement Program Budget and the Proposed Annual Operating Budget for the City, Temecula Community Services District (TCSD), and the Successor Agency to the Temecula Redevelopment Agency (SARDA). Any changes to the Proposed Budgets, as requested at the Budget Workshop, will be incorporated into the Adopted Budget, presented to Council at its June 14, 2022 meeting. The attached Transmittal Letter summarizes the highlights of the Fiscal Year 2022-23 Proposed Annual Operating Budget and Fiscal Years 2023-27 Capital Improvement Program documents. FISCAL IMPACT: The specific fiscal impacts by Fund are noted in the attached Transmittal Letter. ATTACHMENTS: 1. Transmittal Message 2. Proposed Capital Improvement Program Fiscal Years 2023-27 3. Proposed Fiscal Year 2022-23 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget May 19, 2022 Honorable Mayor and Members of the City Council: I am pleased to submit the Proposed Annual Operating Budget for the Fiscal Year 2022-23. This budget document was developed to serve as the financial plan for the City's programs and policies. It reflects the resources necessary to meet the goals, programs, and service priorities that the City Council is committed to providing its citizens. The Fiscal Year 2022-23 Proposed Annual Operating Budget has been developed after a considerable review process. Departmental budget submittals were prepared and reviewed by line item in connection with projected revenues. Detailed performance objectives and accountability measures were developed consistent with the City's Quality of Life Master Plan. Five-year revenue and expenditure projections were developed to identify the future impacts of proposed staffing and program changes, as well as the impact of proposed capital improvement projects. The resulting budget is realistic and balanced and continues to provide quality services to the community while effectively utilizing available resources. As you will read below, the City has fully rebounded from the COVID-19 global pandemic and the local economy remains strong. The City's General Fund is not only balanced for the ensuing fiscal year, but also projected to be balanced for the next five fiscal years. Additionally, the City's reserve funds are fully funded across all five years of the long-range financial forecast. CITY OF TEMECULA PROFILE The City of Temecula is a dynamic community comprised of approximately 109,925 citizens. The City maintains 42 parks on 337 developed acres throughout the community, which provide recreation opportunities for both the citizens of Temecula, as well as surrounding communities. Police and Fire protection services are provided through contracts with Riverside County. The Temecula Valley Unified School District provides 32 schools with 26,562 students at the kindergarten through 12th grade levels within the City. The City of Temecula prides itself on its community focus and quality of life. Temecula's residents enjoy one of the finest lifestyles Southern California has to offer. Environmental and residential factors create a beautiful setting that attracts young, well- educated families to upscale homes that are relatively inexpensive by Southern California standards. Geography contributes to the City's population and retail growth from San Diego and Orange Counties. Temecula's leadership has approached economic growth from a qualitative standpoint, providing the City with a favorable share of the region's higher paying and high technology career opportunities. The City's average income levels are higher than the surrounding region, the educational performance of its young people is above the state average, and Temecula has been recognized as one of Nation's safest cities. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula ' Fiscal Year 2022-23 a Annual Operating Budget The i",L-Ar�of sa c ECONOMIC INDICATORS The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections. Q Population Median Households Average Median # of Jobs Unemployment 109,925 Age 36,626 Income Home Price 55,400 Rate 3.4% 36.1 years $143,718 $728,000 (Mar'22) (Mar'22) • Estimated Population: down 2.5% from 2021 (Source: State Department of Finance) • Median Age: up 0.4 years from 2021 (source: claritas360Report— 10126121) • Number of Households: up 0.7% from 2021 (source: claritos360Report— 10126121) • Average Household Income: up 8.3% from 2021 (source: claritas360Report— 10126121) • March Median Home Price: up 13.6%from April 2021 (Source: Southwest Riverside County Association of Realtors) • Number of Jobs: up 0.5% from 2021 (source: EDD) • March Unemployment Rate: down from 5.8% in April 2021, Riverside County: 4.3%, CA: 4.9%, Nation: 3.6% (source: EDD & BLS) Temecula continued to see growth in the majority of its economic indicators, with significant growth noted in the housing market due to low inventory of homes on the market combined with record low mortgage rates. Population figures decreased statewide by 0.3 percent. Although Riverside County as a whole increased by 0.5 percent, Temecula saw a decrease of 2.5% from the previously reported estimate. LOCAL ECONOMY AND LEGISLATIVE IMPACTS Local Economy As the nation rebounds from the global COVID-19 pandemic, Temecula's economy remains healthy, safe and in -demand. Both national retailers and local entrepreneurs continued to invest in Temecula by opening businesses during the pandemic or have started construction. With Temecula's regional shopping mall, Old Town district, and auto mall, shoppers from the entire Temecula Valley region contribute to the City's sales tax base. Temecula is currently ranked in the top 13% in California for sales tax per capita, out of 539 reporting agencies, and the Promenade Mall, located within Temecula, is currently above 90% leased. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget The The Temecula economy continues to attract new businesses, with several new establishments that have recently opened or are expected to open soon. Both national franchises and local establishments alike will be a welcomed addition to the local economy. iSTAYL "L""L i S U I T E S c cookies ®BE111HRnR LONGHORN' amazon • THE JHPRNE5E5TERHNGIISE STEAKHOUSE Temecula's retail rent per square foot has increased by 13% over the past year to a rate of $2.55 per square foot. Similar to retail rent, both office and industrial rent have also increased over the past year. However, as businesses rebound from the pandemic, the retail vacancy rate continues to be higher than pre -pandemic levels. Retail Market Rent 2021 2022 $2.26/sq.ft. $2.55/sq.ft. Retail Vacancy Rate 2021 2022 7.10% 16.40% Office Rent 2021 2022 $1.93/sq.ft. $2.01/sq.ft. Industrial Rent 2021 2022 $0.99/sq.ft. $1.27/sq.ft. Temecula's hospitality and tourism sector continues to experience a healthy economic rebound. Hoteliers remain economically positive in the Temecula market with increasing occupancy and average daily rates. Additionally, a total of six new hotel establishments are currently in the Planning process. Hotel Occupancy Hotel Average Daily Rate Mar'21 Mar'22 Mar'21 Mar'22 42.90% 68.30% $104.62 $121.72 Development activity within Temecula reached historic levels during 2021, with over 1,000 building permits issued each quarter. The community experienced a 10% increase in land development permits, a 68% increase in new home permits, and a 33% increase in building permits over the past year. Land Development Permits New Homes Permits Building Permits 2020 2021 2020 2021 2020 2021 788 870 272 456 3,486 4,652 Legislative Impacts The City of Temecula actively follows state and federal legislative proposals each year and works closely with the League of California Cities and the National League of Cities to stay informed and engaged to ensure the City supports legislation that aligns with the City's local legislative platform guiding principles: 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget I. Preservation of Local Control - Support measures that preserve and protect the City's general law powers and duties to enact legislation and policy direction concerning local affairs. Oppose measures that preempt local authority. II. Promotion of Fiscal Stability - Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City's revenue base. Oppose measures that mandate costs with no guarantee of local reimbursement or offsetting benefit. Oppose measures that shift local funds to the county, state, or federal government, without offsetting benefit. III. Support Funding Opportunities -Support measures that allow the City to compete for its fair share of regional, state and federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, state and federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards. Recent legislation that potentially impacts the City's operations include the following: California Senate Bill 1383 (Recycling Organic Waste) - On January 1, 2022, SB1383 went into effect, requiring the recycling of organic waste. The law is in response to a statewide effort to reduce emissions of short-lived climate pollutants (SLCP) in an effort to achieve the state's climate goals and the 75% organic waste diversion goal by 2025. The financial impact to the City's budget is not yet fully known, but it is anticipated that the City will provide administrative oversight for the program and potential economic impacts to commercial development are expected. Initiative 21-0042 (The Taxpayer Protection and Government Accountability Act) — The ballot measure, if approved, would define all levies, charges, and fees as taxes. All of these would require a two-thirds legislative vote and voter approval to be enacted. Currently, a two-thirds majority vote is required for the approval of new or increasing special-purpose taxes. A general-purpose tax requires a simple majority approval. This ballot measure would greatly impact the City's ability to maintain fees and charges to keep pace with inflation or enact or modify general-purpose taxes in the future. 2022-23 GOALS AND OBJECTIVES 110011hom The City Council adopted the Temecula 2030 Quality of Life Master Plan (QLMP) in October 2011. The QLMP defines the strategic priorities of S C U t Temecula's residents, leaders, and partners for the City's next twenty years. F It reflects the vision for the City's future and commits the City to aPi performance -based process to accomplish those goals. This plan was LM developed by engaging residents, businesses, local institutions, and regional 1�4�`� partners in an inclusive process. 9 s r E V� 4 / 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget The QLMP outlines six Core Values: �,y Healthy and Livable City d A Sustainable City Economic Prosperity ��\� Transportation Mobility and Connectivity k,nX A Safe and Prepared Community V Ta Accountable and Responsive City Government In an effort to incorporate the QLMP into the City's budget process, City of Temecula executive staff developed goals based on the Core Values of the Quality of Life Master Plan. These goals are used by each department to develop short-term objectives and performance measures for completion in the upcoming fiscal year and are reflected in the Department Information and Performance Measures sections of the budget document. The City is in the process of updating the QLMP and will be revisiting each of the six Core Values through a Blue Ribbon Committee and extensive community outreach. A seventh Core Value related to the Race, Equity, Diversity, and Inclusion (REDI) initiative will also be evaluated as part of this QLMP update. GENERAL FUND ANALYSIS The General Fund forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully funded in all five years. Ending fund balance for Fiscal Year 2022-23 is projected to be $48,534,318, of which $22,990,124 is committed to fulfilling the Fund's policy -level reserves of 25% of Operating Expenditures. A total of $386,630 of fund balance is committed to cover the costs of a Police Officer position funded by the Pechanga Tribe, plus $479,443 is assigned to future Capital Improvement Projects. A total of $24,678,121 in fund balance is unassigned and available for one-time appropriations. FY22-23 General Fund Balance $48,534,318 50,000,00o 45,000,000 40,000,000 Available (Unassigned) 35,000,000 Fund Balance 30,000,000 Assigned/ 25,000,000 Committed 20,000,000 - Secondary Reserve 15,000,000 (5%) 10,000,000 ,,, Reserve for Economic 5,000,000 Uncertainty (20%) General Fund Revenue Highlights Fiscal Year 2022-23 General Fund revenue is projected to increase by 3.2% over the prior year with a total of $103,455,801. Tax revenues are projected to increase by 4.3%. Total revenue includes the second and final deposit of Federal American Rescue Plan Act (ARPA) funding of $7,039,754, used to fund public safety services. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 115,000,000 105,000,000 95,000,000 General Fund 5-Year Projections Revenues over Expenditures A(tua15 Projected 85,000,000 - 75,000,000 - — City of Temecula Fiscal Year 2022-23 Annual Operating Budget 65,000,000 - — 55,000,000 "" L6 0 ,ly.0 Expenditures —Revenues The Fiscal Year 2022-23 General Fund major revenue sources are summarized below: • Sales Tax ($46,456,396) is projected to increase by 3.9% compared to the prior fiscal year as taxable retail sales continue to grow within the local economy. Newly opened establishments include a Lexus dealership, Dick's Sporting Goods, and an Amazon Last Mile Delivery facility, which all help contribute to the growth in Sales Tax revenue. • Property Tax ($10,481,183) is projected to increase by 6.3%, due to a strong housing market combined with rising median home values. With record low inventories, combined with favorable interest rates, housing sales and prices have risen dramatically over the past year, with a 13% increase in the median home price since April 2021. • Franchise Fees ($3,775,740) are projected to increase 1.0% due to anticipated increases in utility rates charged for electricity, gas, and cable services. • Transient Occupancy Tax ($3,859,035) is projected to increase by 3.0% as the hospitality sector has rebounded significantly since the pandemic. The recent opening of Staybridge Suites and Hilton Garden Inn have both contributed to the growth in this sector of the economy. • Licenses, Permits & Service Charges ($5,087,844) are projected to decrease by 13.2% due to completion of the majority of the Sommer's Bend housing development in the prior fiscal year. • Intergovernmental Revenues ($9,912,006) are projected to increase by 6.8% due to the increases expected in Property Tax In Lieu of Vehicle License Fees which is driven by property value assessments within the City. • Operating Transfers In ($3,774,278) are projected to increase by 6.5% due primarily to growth in the Gas Tax Fund, which is anticipated to transfer $3,282,716 for street and road maintenance. The Supplemental Law Enforcement Services Fund is anticipated to transfer $367,286 to supplement the Police Department budget. The final repayment of $124,276 for an advance to 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget the Development Impact Fees Fund for the rehabilitation of Fire Station 73 is also included as an Operating Transfer In. • Operating Transfers In - Measure S ($6,382,496) will continue to fund 11 Police Officers ($4,135,320), staffing for Fire Station No. 95 ($1,990,964), funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles ($170,390), plus funding for enhanced park maintenance services ($85,822). General Fund Expenditure Hiahliahts The largest expenditure of the General Fund is Public Safety, making up 57% of total General Fund expenditures. In accordance with the Measure S ballot language and City Council appropriation guidelines, the City has invested heavily in Public Safety over the past several years and continues to hold Public Safety as its highest priority. In addition to the ongoing Measure S- funded Public Safety expenditures, the Police Department will increase the number of sworn officers to 118.9 and the Fire Department will continue to provide four firefighter personnel per engine at all five fire stations. General Fund expenditures total $91,960,495, which represents a 10.6% increase over the prior fiscal year. The majority of the increase is reflected in the Police Department, as noted below: • Police ($41,061,970) is increasing by 8.9% over the prior year due to the addition of five sworn officers, an increase in daily patrol hours (from 205 hours per day to 210), which is offset by the reduction in one K9 officer that will be provided through a County allocation instead of dedicated to the City. The contract rates charged by the County are projected to increase by 2.5%to account for increased CalPERS pension costs and labor increases resulting from union negotiations. The budget also includes the replacement of two Police motorcycles. • Fire ($11,222,582) is increasing by 18.0% due to a change in CalPERS pension rates, as a result of the expiration of a two-year State -imposed reduction in pension rates. The total Fire contract of $19.7 million is offset by the Structural Fire Tax Credit of $10.3 million. • Non -Safety Departments ($38,280,838) represents a 10.9% increase over the prior year, due primarily to the addition of authorized positions and a negotiated adjustment to the City's Salary Schedule to bring wages up to local market rates. • Non -Departmental ($1,395,106) reflects a 0.3% increase due to inflationary adjustments in the Property Tax Administration Fees and CalPERS Replacement Benefit. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget T.nea�o€sa Operating Transfers Out & One -Time Payments This category of expenditures reflects funds that are transferred to the newly established COVID-19 Pandemic Community Reinvestment Program Fund, Debt Service Funds, Capital Improvement Program and the Fire Facility Acquisition Fund. • Community Reinvestment Program Fund ($7,040,000) to provide grant funding to support local businesses, non -profits, workforce development, higher education, behavioral health, affordable housing and homeless services. • Debt Service Fund ($2,159,642) for the annual Civic Center and Margarita Recreation Center Financing Leases • Capital Improvement Fund ($500,000) for the General Plan Update project. • Fire Facilities Acquisition Fund ($1,500,000) to be transferred into a set -aside fund to accumulate resources for the potential acquisition of property and/or fire station rehabilitation. The Fiscal Year 2022-23 ending fund balance in this new fund is estimated to be $3,000,000. Overall, the General Fund remains structurally balanced, with revenues exceeding expenditures, and reserves are fully -funded each year of the ensuing five-year financial forecast. The City continues to budget in a conservative, yet realistic, manner while keeping close watch on several economic indicators. As conditions change, adjustments to the Fiscal Year 2022-23 revenue or expenditure budgets will be recommended and presented to the City Council for their approval. MEASURE S FUN With the approval of a one -cent transactions and use tax measure in November 2016, the Measure S Fund was established to account for this new revenue source. Fiscal Year 2022-23 Measure S revenue is projected to increase by 4.0% to $37,610,081, as the local economy continues to expand. Measure S appropriations of $38,044,429 for Fiscal Year 2022-23 reflect the priorities established in Budget Policy IV —Transactions and Use Tax Funding, and confirmed by the City Council at their February 8, 2022 meeting: Public Safety (17°o) The budget includes $6,596,674 of Measure S funding for 11 Police Officers ($4,135,320), staffing for Fire Station No. 95 ($1,990,964), and funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles ($170,390). Measure S - FY22-23 Appropriations $38,044,429 Asset Management/Investment (10%) As noted in Council's appropriation guidelines for Measure S, ensuring adequate reserves are set aside for the future replacement of City -owned assets is critical to the long-term viability of the City's operations. For Fiscal Year 2022-23, Measure S is contributing $500,000 to each of the Fleet and Technology 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Replacement Funds, $660,000 to the Facilities Replacement Fund, and $2,000,000 to the Streets Maintenance Fund. Capital Improvement Program (39%) The Fiscal Year 2022-23 budget includes $14,942,089 of Measure S revenue allocated to fund multiple CIP projects. The influx on Measure S funding has allowed the City to leverage other funding sources, such as Development Impact Fees and various grant funds, to complete projects in a timelier manner. Major Projects for Fiscal Year 2022-23 include: • Community Recreation Center Renovation - $3,893,391- to augment funding from Quimby Fees, Development Impact Fees (Parks/Recreation) and developer contributions to reconfigure portions of the CRC and enhance safety features throughout the facility. • Margarita Recreation Center - $1,765,000 — to augment funding from capital financing and Development Impact Fees (Parks/Recreation and Police Facilities) to construct a new recreation center at the Michael "Mike" Naggar Community Park. • Diaz Road Expansion - $1,328,555 - to augment Measure A and TUMF funding for the conversion of Diaz Road to a major arterial (4-lanes) between Cherry Street and Rancho California Road. • Park Restrooms/Renovations/ADA Improvements - $1,025,000 - for restrooms at the Vail Ranch and Long Canyon Parks. • The MERC Concession Upgrade - $604,000 —to upgrade and expand the concession area to a full - service kitchen. • Playground Equipment Enhancement and Safety Surfacing - $500,000 - to fund improvements at the Long Canyon Creek Park and Redhawk Parks. General/Community Services (34%) The Temecula Community Services District (TCSD) has historically been funded with voter -approved Measure C funding and program -related revenue. Measure S funding is used to augment Measure C, in order to maintain the award -winning programs, activities and events TCSD provides to the citizenry. • TCSD Operations contribution - $11,784,280 • Library contribution - $975,563 • Enhanced Custodial Services - $85,822 The ending fund balance within the Measure S Fund is projected to be $11,021,315, which will carry - forward to the ensuing fiscal year. Over the ensuing five-year period, Measure S is projected to have adequate resources to fund public safety, asset management, capital projects and general services. MAJOR SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law. The City has several Special Revenue Funds. The major Special Revenue funds are highlighted below. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Fund 100 - Gas Tax: Gas Tax revenue is projected to be $3,282,718, which reflects an increase of 11.4% as volume of gasoline sales increases. These funds are transferred to the General Fund to support street and road maintenance. Fund 102 — Road Maintenance Rehabilitation Account (RMRA): Per the Road Repair and Accountability Act of 2017 (SB1-Beall), increased gas tax and vehicle registration fees were imposed to fund street and road projects and other transportation uses Statewide. RMRA revenue is projected to be $2,584,827, which is an increase of 10.1% due to the rebounding economy. These funds are allocated to the Pavement Rehabilitation Capital Improvement Project. Fund 103—Street Maintenance: This fund was established in Fiscal Year 2018-19 to accumulate resources for the future replacement of streets and roads throughout the City. Measure S contributes annually to this fund, which has a projected Fiscal Year 2022-23 ending balance of $7,483,094. Fund 105 — NPDES In Lieu Fees: This fund was established in Fiscal Year 2019-20 to account for the collection of In Lieu fees associated with the National Pollutant Discharge Elimination System (NPDES). Revenue is received as private development subject to NPDES requirements occur. Fiscal Year 2022-23 revenue is projected to be $200,000, however no expenditures have been programmed for these funds. Fund 106 — Uptown Temecula New Streets In Lieu Fees: This fund was established in Fiscal Year 2019-20 in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In Lieu Fee. Developers within the Specific Plan who cannot build new streets will be charged the In Lieu Fee. For Fiscal Year 2022-23, revenue is projected to be $105,000, bringing the ending fund balance to $1,195,014. Fund 108 —American Rescue Plan Act (ARPA) Fund: This fund was established in Fiscal Year 2021-22 to account for the receipt of the Federal ARPA grant funding of $14,079,508, which is received in two equal installments in Fiscal Year 2021-22 and Fiscal Year 2022-23. The funds were transferred to the General Fund to support public safety services. Fund 110 — COVID-19 Pandemic Community Reinvestment Program Fund: This fund was established in Fiscal Year 2021-22 to provide grant funding to support the local economy in the rebounding from the global pandemic. Revenue is transferred into this fund from available General Fund balance. The Council approved six funding categories, including: (1) Business Support, (2) Non -Profit Support, (3) Homeless Services, (4) Housing Assistance, (5) Behavioral Health Services, and (6) Higher Education/Workforce Development. Fund 120 — Development Impact Fees (DIF): DIF revenue is projected to be $13,564,460, which reflects an increase of 122% due to the increased activity occurring in the Sommer's Bend development as well as anticipated activity in the Heirloom Farms development. DIF revenue varies from year-to-year as it is based on anticipated development projects. The majority of DIF Revenues are transferred to the CIP to fund capital projects. Fiscal Year 2022-23 ending fund balance is projected to be $7,994,742. Fund 125 — Public, Education & Government (PEG): PEG Fund revenues are received from local cable operators for the sole purpose of supporting the access facilities within the City. PEG Revenues are projected to be $203,300, which will be spent on various technology equipment used to support the 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget broadcast of City Council meetings and events. Fiscal Year 2022-23 ending fund balance is projected to be $650,468. Fund 140 — Community Development Block Grant (CDBG): CDBG revenue is projected to be $1,205,894, for operations and capital projects. Prior year carry-over of CDBG-CV funds totaling $630,894 is intended to provide aid to the community in response to the COVID-19 pandemic. Fiscal Year 2022-23 ending fund balance is projected to be $1,032,675. Fund 145 —Temecula Energy Efficiency Asset (TEAM) Fund: This fund was established to capture energy efficiency rebates to be used to fund future energy efficiency projects. In Fiscal Year 2020-21, the City received a rebate of $640,754 for the acquisition of street lights and conversion to LED bulbs. These funds, combined with the existing fund balance, are programmed to fund an Electric Vehicle Charging Station capital project, lighting along Murrieta Creek, and Sports Field Lighting upgrades. Fiscal Year 2022-23 ending fund balance is projected to be $142,309. Fund 150—AB2766 Motor Vehicle Subvention Fund: This fund was established to account for subvention funds used to implement programs/projects to reduce air pollution from motor vehicles. Fiscal Year 2022- 23 revenue is projected to be $150,489. The majority of these funds are programmed for capital projects, including the Citywide Bike Lane and Trail Program. Fiscal Year 2022-23 ending fund balance is projected to be $5,027. Fund 160— Supplemental Law Enforcement Services Fund: This fund was established to account for state grant funds to assist cities in delivering front-line law enforcement services. Fiscal Year 2022-23 revenue is projected to be $280,665 and will be transferred to the General Fund to support law enforcement. Fund 165—Affordable Housing Fund: The Affordable Housing Fund reflects the housing -related activities of the former Temecula Redevelopment Agency. Total Revenue for Fiscal Year 2022-23 of $821,000 includes the State Department of Finance allocation of $250,000 designated for the administration of the wind down of redevelopment obligations. Expenditures reflect the ongoing administration of the City's Affordable Housing program as well as $557,000 for the Habitat for Humanity — Old Town Units capital project. Fund 170— Measure A: Measure A revenue is projected to be $3,280,500, which reflects a 22.3% decrease from the prior year. This revenue is restricted for use on local streets and roads, and is programmed to support street and road maintenance. Fiscal Year 2022-23 ending fund balance is projected to be $1,285,338. INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the funding of goods and services provided by one department to other benefitting departments on a cost -reimbursement basis. Additionally, the City maintains several Replacement Funds designed to accumulate resources for the future replacement of City equipment, technology, and facilities. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Fund 300 — Insurance: Projected expenses total $1,517,257, which covers the cost of administering the City's liability and property insurance programs. The projected fund balance is $722,053, which exceeds the desired balance of $450,000. Fund 305 — Workers' Compensation: Projected expenses total $470,770, which covers the cost of administering the City's self -insured Workers' Compensation program. The projected fund balance is $1,668,429, which exceeds the desired balance of $1.5 million. Fund 310 —Vehicles and Equipment: Projected expenses total $670,500 to replace two fire medic squads ($426,000), a construction dump truck ($150,000), a pressure washer ($35,000), three arrow boards ($19,500) and a replacement vehicle for Community Development ($40,000). The projected fund balance is $5,274,230. Fund 320 — Information Technology: Projected expenses total $5,910,265, which provides for the management of the City's computers, audio-visual equipment, cyber security, and telephone systems. The projected fund balance is $1,117,284. Fund 325 —Technology Replacement: Projected expenses total $160,000 to replace the City's telephones ($30,000), a UPS battery ($50,000), a GIS plotter ($10,000) and fund the annual computer lifecycle replacement program ($70,000). The projected fund balance is $2,485,713. Fund 330 — Support Services: Projected expenses total $379,963, which provides for the management of the City's central reception, printing and mail activities. The projected fund balance is $4,235. Fund 335 — Support Services Replacement: Projected expenses total $25,000 to replace the Central Services plotter and paper folder machines. The projected fund balance is $403,948. Fund 340 — Facilities: Projected expenses total $1,651,435, which provide for the operations and maintenance of the City's buildings and parking structure. The projected fund balance is $589,111. Fund 350 — Facility Replacement: Projected expenses total $500,000 for the City Facilities Rehabilitation capital project. The projected fund balance is $242,473. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA) Fund 380 — SARDA: Projected expenses total $5,899,866 to pay debt service expenditures on the outstanding 2017A and 2017B Redevelopment Agency Tax Allocation Bonds. TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) The Temecula Community Services District was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs and events. TCSD also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, and library services (known as Service Level Funds). 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Combined revenue for TCSD totals $30,133,322, which reflects an increase of 12.7% over the prior year as TCSD programs return to pre -pandemic levels. The majority of the increase is from TCSD Operations as events, programs and recreational classes have resumed after the pandemic. Additionally, a transfer of $1 million from the COVID-19 Community Reinvestment Program Fund for homeless services is included in the Fiscal Year 2022-23 revenue projection. Combined expenditures for TCSD total $29,772,002 and reflect an increase of 6.8% over the prior year, due primarily to the re -opening of facilities, programs, classes, and events. Additionally, it is anticipated that the new Margarita Recreation Center will open in the Spring of 2023, so an addition of four full- time/authorized positions are included in the TCSD Operations budget. Ending fund balance for TCSD is projected to be $4,175,253 for Fiscal Year 2022-23. $320.00 52a°.o° 5zn°.o° As noted in the adjacent chart, 1210.00 TCSD's Special Tax (Measure C) funds $"0.03 approximately 24% of the District's Parks and Recreation budget. The remaining 76% comes from Measure S and programmatic revenues. TCSD Per Capita Funding F H_19 "n 20 FY20-21 FV21-22 FY22-23 ■ special Tax TCSD Funding CAPITAL IMPROVEMENT PROGRAM (CIP) The City's five-year Capital Improvement Program (CIP) is presented to the City Council under separate cover. This program provides a five-year plan for capital improvements that is updated annually to ensure compliance with the program. The impact of capital projects on maintenance and operating costs were taken into consideration in the development of the operating budget. Circulation, infrastructure, parks, affordable housing, and other various projects are identified in the CIP budget. The CIP includes a total of $793,744,301 in identified capital projects, with a total of $590,098,244 in project funding. There is $203,646,057 in "Unspecified" project funding, indicating that a revenue source has not yet been secured for these projects, which have been identified as necessary infrastructure for the City, and will require that funding sources be identified before the project construction can commence. Capital projects are categorized into four Project Types. Project Number of Total Project Type Projects Cost Circulation 30 619,776,487 Infrastructure 52 111,436,853 Parks/Recreation 20 44,632,961 SARDA 3 17,898,000 Various sources contribute to the funding of the Capital Improvement Program, including many City Funds, State and Federal Grants, Community Facility District Funds, Successor Agency Funds, and Transportation Uniform Mitigation Fee (TUMF) Funds. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 10 i r � The City has incurred $6.5 million in debt (private placement loan) to fund the Margarita Recreation Center project. The rate on this debt is 3.42% and matures on September 1, 2033. Repayment of this debt comes from the General Fund. The City seeks all available funding sources for projects, including federal, state, and local grants, outside contributions and City funds. Total funding for the Fiscal Years 2023-27 CIP program reflects 66% from outside funding sources, with the remaining 34% provided by City of Temecula Fiscal Year 2022-23 Annual Operating Budget Capital Project Funding Sources TCSD District TUMF, 75,884,302, Funds, 13% 462,303 , 0% State/Local Grants, City Funds, 91,907,814, 33% 23,048,733 , 4% SARDA, 13,457,218, z% Reimbursements, 1 41,807,364 , 7% Community Facility Districts , 55,840,088 , 9% Federal Grants, 142,364,579 , 24% Development Impact Fees , 45,325,843 , 89/ various City funds, including Measure S, Measure A, Development Impact Fee Funds, General Fund, RMRA Funds, and several other sources. A total of nine new projects have been added to the CIP including the following: • Auto Mall Wayfinding Signs • Bike Lane and Trail Program — Ronald Reagan Sports Park Trails • Butterfield Stage Road Storm Drain Improvements • Habitat for Humanity — Old Town Units • Harveston Community Park Building Renovations and Expansion • Infill Recreation Amenities • Rancho California Road Median Improvements • The MERC Concession Upgrade • Utility Undergrounding — Main Street and Vicinity As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. Seven projects reflect the addition of ongoing operating costs, while one project identifies ongoing operating savings. The amounts identified on the table are incorporated into the General Fund Five -Year Forecast. 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 C(flwl All 155 - PARK RESTROOMS RENOVATIONS, EXPANSION AND AMERICANS WITH DISABILITIES City of Temecula Fiscal Year 2022-23 Annual Operating Budget ACT (ADA) IMPROVEMENTS 5250 - OTHER OUTSIDE SERVICES Janitorial Services 26,530 27,061 27,602 28,154 688 - CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT 5319-STREET LIGHTING Electricity Savings (655,636) (675,305) (695,564) (709,475) 690 - I-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING 5415- LANDSCAPE MAINTENANCE Required by Caltrans 56,240 58,490 60,830 62,046 692 - MARGARITA RECREATION CENTER 5100 - SALARIES & WAGES Staffing for MRC (4 positions) 483,699 498,210 513,157 528,551 5240-UTILITIES Additional Utility Costs 55,000 55,000 55,000 55,000 5250- OTHER OUTSIDE SERVICES Janitorial/Security 50,000 50,000 50,000 50,000 5378- CONTRACTED CLASSES Contract Classes 164,145 176,520 185,000 190,000 5418- POOL MAINTENANCE Swimming Pool maintenance 100,000 100,000 100,000 100,000 852,844 879,730 903,157 923,551 Maintenance and Operations for 711- CITYWIDE SURVEILLANCE CAMERAS 5250- OTHER OUTSIDE SERVICES Surveillance System 350.000 350.000 350,000 350,000 724- CITYWIDE FINANCIAL SYSTEM UPGRADE 5211-SOFTWARE& MAINTENANCE Annual Software Maintenance 66,934 66,934 66,934 66,934 780 - OLD TOWN SURVEILLANCE & SOUND Maintenance fees for Old Town SYSTEM Total Incremental Operating& Maintenance Impacts 5215- REPAIR & MAINTENANCE -EQUIPMENT Sound System 50,000 746,912 50,000 756,910 50,000 762,959 50,000 771,210 2022-23 AUTHORIZED STAFFING Total authorized Full Time Equivalent (FTE) positions total 196.45 authorized positions, including one authorized/unfunded position. The increase reflects 17.75 new positions compared to the prior year, of which 10 were added as part of the Fiscal Year 2021-22 Mid -Year Budget update. All positions added since last fiscal year are summarized by department below: • Community Development (6 positions) o Code Enforcement Officer 1 (2) o Community Development Technician I o Building Inspector 11 o Planning Technician o Assistant Director of Community Development • Temecula Community Services District (5 positions) o Senior Recreation Leader o Aquatics Supervisor o Aquatics Coordinator o Community Services Coordinator (previously authorized/unfunded) o Community Services Supervisor (previously authorized/unfunded) • Public Works (4 positions) o Associate Civil Engineer o Supervising Public Works Inspector o Lead Maintenance Worker I o Maintenance Worker I • Human Resources (1 position) o Management Assistant 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget • Economic Development (1 position) o Management Analyst • Information Technology/Support Services (0.5 position) o Senior Administrative Assistant (conversion from Y2 to full-time) • Finance (0.25 position) o Senior Accounting Technician -Payroll (conversion from % to full-time) Total Authorized Positions remains below the peak in Fiscal Year 2007-08 by 14.3 positions. In addition to the Authorized Positions, the City employs a significant number of part-time, non-benefitted Project employees, primarily to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2022-23, an estimated 58.7 full-time equivalents (FTE) will be hired as seasonal and part-time support. City of Temecula History of Authorized Positions 250.00 210.75 196.45 200.00 150.00 100.00 50, 00 o s Public Safety personnel is provided through contracts with Riverside County and CalFire. A total of 118.9 sworn Police Officers and 18 Community Service Officers are included in the Police budget, and a total of 71 personnel are reflected in the Fire Department budget for Fiscal Year 2022-23. BUDGET POLICIES As part of the annual budget process, in February, the Council is presented the budget priorities and policy metrics used in the current budget to discuss changes to incorporate in the next budget. On February 8, 2022, the Council affirmed that public safety will remain as the top priority and the core values outlined in the Quality of Life Master Plan will remain the guiding principles behind appropriation recommendations. Several Budget and Fiscal Policy metrics were also affirmed, with recommended changes as noted below: • Include reference to public safety staffing levels (reflected in Budget Policy IV.B. — Transactions and Use Tax Funding and Budget Policy VI.1.1.b and c — Staffing Policy) • Increase City Manager approval authority from $60,000 to $100,000 (reflected in Budget Policy XILA— Signature Delegation Policy) • Increase the City Manager settlement authority from $25,000 to $100,000 (reflected in Budget Policy XILB —Signature Delegation Policy) • Increase the eligibility threshold for assets to be replaced using the Technology Replacement Fund from $3,000 to $5,000 (reflected in Budget Policy VII —Asset Management and Replacement) 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Additionally, staff recommends modifications to Budget Policy VI —Asset Management and Replacement, to reflect the City's current practice of managing the various asset replacement funds established over the past several years. Finally, staff recommends the removal of the Investments section of the Budget Policies and replace it with a stand-alone Investment Policy, updated to reflect allowable investments as outlined in state law. Per the California Government Code, Section 53646, "...the treasurer or chief fiscal officer of the local agency may annually render to the legislative body ... a statement of investment policy..." This language changed from "shall" annually render to "may" roughly ten years ago, therefore this policy is only required to be approved when changes are recommended. The updated stand-alone Investment Policy will be presented to the City Council at their June 14, 2022 meeting for consideration and approval. CONCLUSION In conclusion, the City of Temecula is in a strong fiscal position with the General Fund balanced and all reserves fully funded not only in Fiscal Year 2022-23 but throughout the ensuing five-year period. The Capital Improvement Program is the largest in the City's history and will deliver a wide array of improvements to infrastructure, facilities, affordable housing, enhanced parks, new trails and many other amenities the citizens of Temecula enjoy. I would like to express my appreciation to the City Council for providing the direction and support crucial to achieving the City's goals. I would also like to recognize the contributions of City staff for not only creating a responsive operating budget, but also for their commitment to providing top quality services to all who live, work and play in Temecula. I would like to give special thanks to the City's Budget Team: Jennifer Hennessy, Director of Finance; Patricia Hawk, Fiscal Services Manager; and Catlin Dorset, Senior Accounting Technician for their long hours and dedication to the City and this budget process. Sincerely, Aaron Adams City Manager 41000 Main Street, Temecula, CA 92590 ♦ Phone (951) 694-6444 ♦ Facsimile (951) 694-6479 PROPOSED ANNUAL OPERATING BUDGETFISCAL YEAR 2022-2023CITY OF TEMECULA, CALIFORNIA ANNUAL OPERATING BUDGET Fiscal Year 2022-23 How to navigate this document: 1) Bookmarks are provided in the navigation pane on the left side of the screen. 2) Hyperlinks are active in the Table of Contents and Index. 3) The Temecula logo located in the top left corner throughout the document is hyperlinked to take you back to the Table of Contents at any time. 4) Click on the Social Media icons below to be taken directly to the City of Temecula’s social media pages. City Council City Management Matt Rahn, Mayor Pro Tem Aaron Adams, City Manager Zak Schwank, Council Member Kevin Hawkins, Assistant City Manager James “Stew” Stewart, Council Member Luke Watson, Deputy City Manager Jessica Alexander, Council Member Jennifer Hennessy, Finance Director Maryann Edwards, Council Member City of Temecula 41000 Main Street Temecula, California 92590 (951) 694-6430 www.temeculaca.gov Mayor Dr. Matt Rahn revealed Temecula SAFE to be his focus during his Mayoral tenure for 2022 as well as his theme for the May 12th Temecula State of the City Address. First elected in 2014, and serving as Temecula’s Mayor in 2018, Dr. Matt Rahn returns this year with the familiar and again poignant tagline: Temecula SAFE. Mayor Rahn explained, “Temecula SAFE is a call to action - a purpose and an intention incorporated into the City’s work efforts every year; however as Mayor this year, I’m highlighting it again as Public Safety is Temecula’s first priority.” During his State of the City presentation, Mayor Rahn will highlight the draw and appeal of Temecula’s SAFE City notoriety as a catalyst for local economy, driving accelerated recovery by attracting new business establishments, residential development, and commercial redevelopment projects. Mayor Rahn will also discuss Temecula’s ongoing strategy for success which includes safeguarding its private and public capital investments and protecting its most precious resource, its people. “Temecula SAFE is also a commemoration of the high quality of life that our citizens, businesses, and visitors enjoy. Public Safety is a strong interlocking system of crime prevention, maintaining and enhancing safe roadways, neighborhoods, schools, and parks. It is also community engagement and emergency preparedness from unexpected events such as cyber-attacks or devastating wildfires as well as the ongoing challenges we face due to COVID-19.” Mayor Rahn added, “It is my commitment to continue to advance public safety through data-driven, proactive strategies, continuous safety assessments and refinement, and listening to the needs of the community. As Mayor of Temecula, I look forward to keeping public safety the City’s highest priority.” Matt Rahn Mayor City of Temecula Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget TABLE OF CONTENTS INTRODUCTION Transmittal Message ------------------------------------------------------------------------------------------------ 7 Directory ------------------------------------------------------------------------------------------------------------- 25 City Organizational Chart ---------------------------------------------------------------------------------------- 26 Mission and Value Statements --------------------------------------------------------------------------------- 27 Citywide Long-Term Goals --------------------------------------------------------------------------------------- 28 Government Finance Officers Association (GFOA) Award ------------------------------------------------ 30 California Society of Municipal Finance Officers (CSMFO) Award -------------------------------------- 31 City of Temecula at a Glance ------------------------------------------------------------------------------------ 32 GUIDE TO THE BUDGET DOCUMENT Understanding the Budget Document ------------------------------------------------------------------------ 33 Budgetary Fund Structure --------------------------------------------------------------------------------------- 35 Description of Funds ---------------------------------------------------------------------------------------------- 37 Funds and Departments ------------------------------------------------------------------------------------------ 42 Funding Sources by Department ------------------------------------------------------------------------------- 44 Budget Process ----------------------------------------------------------------------------------------------------- 45 Budget Engagement Sessions ----------------------------------------------------------------------------------- 48 Budget Calendar --------------------------------------------------------------------------------------------------- 49 FIVE-YEAR FORECAST Long Range Financial Projection -------------------------------------------------------------------------------- 51 Five-Year Financial Projection – General Fund -------------------------------------------------------------- 53 Five-Year Revenue Projection – General Fund -------------------------------------------------------------- 55 Five-Year Expenditure Projection – General Fund --------------------------------------------------------- 57 Five-Year Financial Projection – Measure S Fund ---------------------------------------------------------- 61 Five-Year Financial Projection – Temecula Community Services District Fund ---------------------- 65 3 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget TABLE OF CONTENTS (continued) FINANCIAL SUMMARIES Fund Balance Summary ------------------------------------------------------------------------------------------ 67 Major Revenue Sources ------------------------------------------------------------------------------------------ 69 General Fund: Revenues by Source ------------------------------------------------------------------------------------- 77 Revenue Detail -------------------------------------------------------------------------------------------- 78 Fund Summaries ------------------------------------------------------------------------------------------ 80 Measure S Fund: Fund Summary -------------------------------------------------------------------------------------------- 85 Special Revenue and Debt Service Funds: Revenue Detail -------------------------------------------------------------------------------------------- 87 Fund Summaries ------------------------------------------------------------------------------------------ 90 Temecula Community Services District (TCSD): Revenue by Source ------------------------------------------------------------------------------------- 110 Revenue Detail ------------------------------------------------------------------------------------------- 111 Fund Summaries ----------------------------------------------------------------------------------------- 115 Successor Agency to the Temecula Redevelopment Agency (SARDA): Fund Summary ------------------------------------------------------------------------------------------ 126 Internal Service Funds: Revenue Detail ------------------------------------------------------------------------------------------- 128 Fund Summaries ----------------------------------------------------------------------------------------- 130 Capital Improvement Program Fund: Fund Summary ------------------------------------------------------------------------------------------- 140 PERFORMANCE MEASURES ------------------------------------------------------------------ 141 DEPARTMENTAL INFORMATION Departmental Overview ----------------------------------------------------------------------------------------- 155 City Council --------------------------------------------------------------------------------------------------------- 157 City Manager ------------------------------------------------------------------------------------------------------- 165 City Clerk ------------------------------------------------------------------------------------------------------------ 173 City Attorney ------------------------------------------------------------------------------------------------------- 179 4 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget TABLE OF CONTENTS (continued) Finance Department --------------------------------------------------------------------------------------------- 183 Human Resources, Risk and Emergency Management--------------------------------------------------- 189 Community Development Department ---------------------------------------------------------------------- 199 Public Works Department -------------------------------------------------------------------------------------- 211 Police Department ------------------------------------------------------------------------------------------------ 223 Fire Department -------------------------------------------------------------------------------------------------- 233 Non-Departmental ----------------------------------------------------------------------------------------------- 241 Temecula Community Services District ---------------------------------------------------------------------- 245 Internal Service Funds ------------------------------------------------------------------------------------------- 257 CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program Summary ------------------------------------------------------------------- 271 Description of Revenue Sources ------------------------------------------------------------------------------ 274 Projected Revenue Summary --------------------------------------------------------------------------------- 279 CIP Major Revenue Sources ----------------------------------------------------------------------------------- 282 Capital Project Expenditure Summary ----------------------------------------------------------------------- 283 Expenditure Summary by Project Type --------------------------------------------------------------------- 290 Capital Projects Summary – by Funding Source ----------------------------------------------------------- 291 Capital Projects Summary – by Project ---------------------------------------------------------------------- 310 Summary of Operating & Maintenance Costs -------------------------------------------------------------- 323 Future Years Projects -------------------------------------------------------------------------------------------- 324 BUDGET AND FISCAL POLICIES ------------------------------------------------------------ 325 APPENDICES Appendix A - Personnel Summary of Changes in Authorized Positions, Personnel and Benefit Costs -------------- 365 Schedule of Authorized Positions ------------------------------------------------------------------- 368 Schedule of Changes in Allocated Positions ------------------------------------------------------- 372 Summary of Budgeted Positions --------------------------------------------------------------------- 380 5 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget TABLE OF CONTENTS (continued) Appendix B – Supplemental Information Locator Map ---------------------------------------------------------------------------------------------- 381 Community Profile and Demographics ------------------------------------------------------------- 382 Consolidated Capital Outlay -------------------------------------------------------------------------- 385 GANN Appropriations Limit --------------------------------------------------------------------------- 388 Assessed Value of Taxable Property ---------------------------------------------------------------- 389 Summary of Federal Grant Expenditures ---------------------------------------------------------- 390 Legal Debt Margin--------------------------------------------------------------------------------------- 391 Debt Obligations ----------------------------------------------------------------------------------------- 392 Summary of Property Tax Rates --------------------------------------------------------------------- 393 Principal Secured Property Owners ----------------------------------------------------------------- 394 Computation of Direct and Overlapping Bonded Debt ----------------------------------------- 395 Largest Employers by Number of Employees ----------------------------------------------------- 397 Comparative City Information ------------------------------------------------------------------------ 398 Summary of Interfund Transfers -------------------------------------------------------------------- 399 Summary of Affordable Housing Investment ----------------------------------------------------- 400 Additional Resources ----------------------------------------------------------------------------------- 402 Appendix C – Glossary/Index Glossary of Acronyms ---------------------------------------------------------------------------------- 403 Glossary of Terms --------------------------------------------------------------------------------------- 406 Index ------------------------------------------------------------------------------------------------------- 412 6 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget May 19, 2022 Honorable Mayor and Members of the City Council: I am pleased to submit the Proposed Annual Operating Budget for the Fiscal Year 2022-23. This budget document was developed to serve as the financial plan for the City’s programs and policies. It reflects the resources necessary to meet the goals, programs, and service priorities that the City Council is committed to providing its citizens. The Fiscal Year 2022-23 Proposed Annual Operating Budget has been developed after a considerable review process. Departmental budget submittals were prepared and reviewed by line item in connection with projected revenues. Detailed performance objectives and accountability measures were developed consistent with the City’s Quality of Life Master Plan. Five-year revenue and expenditure projections were developed to identify the future impacts of proposed staffing and program changes, as well as the impact of proposed capital improvement projects. The resulting budget is realistic and balanced and continues to provide quality services to the community while effectively utilizing available resources. As you will read below, the City has fully rebounded from the COVID-19 global pandemic and the local economy remains strong. The City’s General Fund is not only balanced for the ensuing fiscal year, but also projected to be balanced for the next five fiscal years. Additionally, the City’s reserve funds are fully funded across all five years of the long-range financial forecast. CITY OF TEMECULA PROFILE The City of Temecula is a dynamic community comprised of approximately 109,925 citizens. The City maintains 42 parks on 337 developed acres throughout the community, which provide recreation opportunities for both the citizens of Temecula, as well as surrounding communities. Police and Fire protection services are provided through contracts with Riverside County. The Temecula Valley Unified School District provides 32 schools with 26,562 students at the kindergarten through 12th grade levels within the City. The City of Temecula prides itself on its community focus and quality of life. Temecula’s residents enjoy one of the finest lifestyles Southern California has to offer. Environmental and residential factors create a beautiful setting that attracts young, well- educated families to upscale homes that are relatively inexpensive by Southern California standards. Geography contributes to the City’s population and retail growth from San Diego and Orange Counties. Temecula’s leadership has approached economic growth from a qualitative standpoint, providing the City with a favorable share of the region’s higher paying and high technology career opportunities. The City’s average income levels are higher than the surrounding region, the educational performance of its young people is above the state average, and Temecula has been recognized as one of Nation’s safest cities. 7 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget ECONOMIC INDICATORS The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections. •Estimated Population:down 2.5% from 2021 (Source: State Department of Finance) •Median Age:up 0.4 years from 2021 (Source: Claritas360 Report – 10/26/21) •Number of Households:up 0.7% from 2021 (Source: Claritas360 Report – 10/26/21) •Average Household Income: up 8.3% from 2021 (Source: Claritas360 Report – 10/26/21) •March Median Home Price:up 13.6% from April 2021 (Source: Southwest Riverside County Association of Realtors) •Number of Jobs:up 0.5% from 2021 (Source: EDD) •March Unemployment Rate: down from 5.8% in April 2021, Riverside County: 4.3%, CA: 4.9%, Nation: 3.6% (Source: EDD & BLS) Temecula continued to see growth in the majority of its economic indicators, with significant growth noted in the housing market due to low inventory of homes on the market combined with record low mortgage rates. Population figures decreased statewide by 0.3 percent. Although Riverside County as a whole increased by 0.5 percent, Temecula saw a decrease of 2.5% from the previously reported estimate. LOCAL ECONOMY AND LEGISLATIVE IMPACTS Local Economy As the nation rebounds from the global COVID-19 pandemic, Temecula’s economy remains healthy, safe and in-demand. Both national retailers and local entrepreneurs continued to invest in Temecula by opening businesses during the pandemic or have started construction. With Temecula’s regional shopping mall, Old Town district, and auto mall, shoppers from the entire Temecula Valley region contribute to the City’s sales tax base. Temecula is currently ranked in the top 13% in California for sales tax per capita, out of 539 reporting agencies, and the Promenade Mall, located within Temecula, is currently above 90% leased. Population 109,925 Median Age 36.1 years Households 36,626 Average Income $143,718 Median Home Price $728,000 (Mar’22) Unemployment Rate 3.4% (Mar’22) # of Jobs 55,400 8 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget The Temecula economy continues to attract new businesses, with several new establishments that have recently opened or are expected to open soon. Both national franchises and local establishments alike will be a welcomed addition to the local economy. Temecula’s retail rent per square foot has increased by 13% over the past year to a rate of $2.55 per square foot. Similar to retail rent, both office and industrial rent have also increased over the past year. However, as businesses rebound from the pandemic, the retail vacancy rate continues to be higher than pre-pandemic levels. Temecula’s hospitality and tourism sector continues to experience a healthy economic rebound. Hoteliers remain economically positive in the Temecula market with increasing occupancy and average daily rates. Additionally, a total of six new hotel establishments are currently in the Planning process. Development activity within Temecula reached historic levels during 2021, with over 1,000 building permits issued each quarter. The community experienced a 10% increase in land development permits, a 68% increase in new home permits, and a 33% increase in building permits over the past year. Legislative Impacts The City of Temecula actively follows state and federal legislative proposals each year and works closely with the League of California Cities and the National League of Cities to stay informed and engaged to ensure the City supports legislation that aligns with the City’s local legislative platform guiding principles: 2021 2022 2021 2022 2021 2022 2021 2022 $2.26/sq.ft. $2.55/sq.ft. 7.10% 16.40% $1.93/sq.ft. $2.01/sq.ft. $0.99/sq.ft. $1.27/sq.ft. Industrial RentRetail Market Rent Retail Vacancy Rate Office Rent 2020 2021 2020 2021 2020 2021 788 870 272 456 3,486 4,652 Land Development Permits New Homes Permits Building Permits Mar'21 Mar'22 Mar'21 Mar'22 42.90% 68.30% $104.62 $121.72 Hotel Occupancy Hotel Average Daily Rate 9 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget I.Preservation of Local Control - Support measures that preserve and protect the City’s general law powers and duties to enact legislation and policy direction concerning local affairs. Oppose measures that preempt local authority. II.Promotion of Fiscal Stability - Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City’s revenue base. Oppose measures that mandate costs with no guarantee of local reimbursement or offsetting benefit. Oppose measures that shift local funds to the county, state, or federal government, without offsetting benefit. III.Support Funding Opportunities - Support measures that allow the City to compete for its fair share of regional, state and federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, state and federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards. Recent legislation that potentially impacts the City’s operations include the following: California Senate Bill 1383 (Recycling Organic Waste) - On January 1, 2022, SB1383 went into effect, requiring the recycling of organic waste. The law is in response to a statewide effort to reduce emissions of short-lived climate pollutants (SLCP) in an effort to achieve the state’s climate goals and the 75% organic waste diversion goal by 2025. The financial impact to the City’s budget is not yet fully known, but it is anticipated that the City will provide administrative oversight for the program and potential economic impacts to commercial development are expected. Initiative 21-0042 (The Taxpayer Protection and Government Accountability Act) – The ballot measure, if approved, would define all levies, charges, and fees as taxes. All of these would require a two-thirds legislative vote and voter approval to be enacted. Currently, a two-thirds majority vote is required for the approval of new or increasing special-purpose taxes. A general-purpose tax requires a simple majority approval. This ballot measure would greatly impact the City’s ability to maintain fees and charges to keep pace with inflation or enact or modify general-purpose taxes in the future. 2022-23 GOALS AND OBJECTIVES The City Council adopted the Temecula 2030 Quality of Life Master Plan (QLMP) in October 2011. The QLMP defines the strategic priorities of Temecula’s residents, leaders, and partners for the City’s next twenty years. It reflects the vision for the City’s future and commits the City to a performance-based process to accomplish those goals. This plan was developed by engaging residents, businesses, local institutions, and regional partners in an inclusive process. 10 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget The QLMP outlines six Core Values: In an effort to incorporate the QLMP into the City’s budget process, City of Temecula executive staff developed goals based on the Core Values of the Quality of Life Master Plan. These goals are used by each department to develop short-term objectives and performance measures for completion in the upcoming fiscal year and are reflected in the Department Information and Performance Measures sections of the budget document. The City is in the process of updating the QLMP and will be revisiting each of the six Core Values through a Blue Ribbon Committee and extensive community outreach. A seventh Core Value related to the Race, Equity, Diversity, and Inclusion (REDI) initiative will also be evaluated as part of this QLMP update. GENERAL FUND ANALYSIS The General Fund forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully funded in all five years. Ending fund balance for Fiscal Year 2022-23 is projected to be $48,534,318, of which $22,990,124 is committed to fulfilling the Fund’s policy-level reserves of 25% of Operating Expenditures. A total of $386,630 of fund balance is committed to cover the costs of a Police Officer position funded by the Pechanga Tribe, plus $479,443 is assigned to future Capital Improvement Projects. A total of $24,678,121 in fund balance is unassigned and available for one-time appropriations. General Fund Revenue Highlights Fiscal Year 2022-23 General Fund revenue is projected to increase by 3.2% over the prior year with a total of $103,455,801. Tax revenues are projected to increase by 4.3%. Total revenue includes the second and final deposit of Federal American Rescue Plan Act (ARPA) funding of $7,039,754, used to fund public safety services. Healthy and Livable City Economic Prosperity A Safe and Prepared Community A Sustainable City Accountable and Responsive City Government Transportation Mobility and Connectivity 11 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget The Fiscal Year 2022-23 General Fund major revenue sources are summarized below: •Sales Tax ($46,456,396) is projected to increase by 3.9% compared to the prior fiscal year as taxable retail sales continue to grow within the local economy. Newly opened establishments include a Lexus dealership, Dick’s Sporting Goods, and an Amazon Last Mile Delivery facility, which all help contribute to the growth in Sales Tax revenue. •Property Tax ($10,481,183) is projected to increase by 6.3%, due to a strong housing market combined with rising median home values. With record low inventories, combined with favorable interest rates, housing sales and prices have risen dramatically over the past year, with a 13% increase in the median home price since April 2021. •Franchise Fees ($3,775,740) are projected to increase 1.0% due to anticipated increases in utility rates charged for electricity, gas, and cable services. •Transient Occupancy Tax ($3,859,035) is projected to increase by 3.0% as the hospitality sector has rebounded significantly since the pandemic. The recent opening of Staybridge Suites and Hilton Garden Inn have both contributed to the growth in this sector of the economy. •Licenses, Permits & Service Charges ($5,087,844) are projected to decrease by 13.2% due to completion of the majority of the Sommer’s Bend housing development in the prior fiscal year. •Intergovernmental Revenues ($9,912,006) are projected to increase by 6.8% due to the increases expected in Property Tax In Lieu of Vehicle License Fees which is driven by property value assessments within the City. •Operating Transfers In ($3,774,278) are projected to increase by 6.5% due primarily to growth in the Gas Tax Fund, which is anticipated to transfer $3,282,716 for street and road maintenance. The Supplemental Law Enforcement Services Fund is anticipated to transfer $367,286 to supplement the Police Department budget. The final repayment of $124,276 for an advance to 12 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget the Development Impact Fees Fund for the rehabilitation of Fire Station 73 is also included as an Operating Transfer In. • Operating Transfers In - Measure S ($6,382,496) will continue to fund 11 Police Officers ($4,135,320), staffing for Fire Station No. 95 ($1,990,964), funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles ($170,390), plus funding for enhanced park maintenance services ($85,822). General Fund Expenditure Highlights The largest expenditure of the General Fund is Public Safety, making up 57% of total General Fund expenditures. In accordance with the Measure S ballot language and City Council appropriation guidelines, the City has invested heavily in Public Safety over the past several years and continues to hold Public Safety as its highest priority. In addition to the ongoing Measure S- funded Public Safety expenditures, the Police Department will increase the number of sworn officers to 118.9 and the Fire Department will continue to provide four firefighter personnel per engine at all five fire stations. General Fund expenditures total $91,960,495, which represents a 10.6% increase over the prior fiscal year. The majority of the increase is reflected in the Police Department, as noted below: • Police ($41,061,970) is increasing by 8.9% over the prior year due to the addition of five sworn officers, an increase in daily patrol hours (from 205 hours per day to 210), which is offset by the reduction in one K9 officer that will be provided through a County allocation instead of dedicated to the City. The contract rates charged by the County are projected to increase by 2.5% to account for increased CalPERS pension costs and labor increases resulting from union negotiations. The budget also includes the replacement of two Police motorcycles. • Fire ($11,222,582) is increasing by 18.0% due to a change in CalPERS pension rates, as a result of the expiration of a two-year State-imposed reduction in pension rates. The total Fire contract of $19.7 million is offset by the Structural Fire Tax Credit of $10.3 million. • Non-Safety Departments ($38,280,838) represents a 10.9% increase over the prior year, due primarily to the addition of authorized positions and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. • Non-Departmental ($1,395,106) reflects a 0.3% increase due to inflationary adjustments in the Property Tax Administration Fees and CalPERS Replacement Benefit. 13 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Operating Transfers Out & One-Time Payments This category of expenditures reflects funds that are transferred to the newly established COVID-19 Pandemic Community Reinvestment Program Fund, Debt Service Funds, Capital Improvement Program and the Fire Facility Acquisition Fund. • Community Reinvestment Program Fund ($7,040,000) to provide grant funding to support local businesses, non-profits, workforce development, higher education, behavioral health, affordable housing and homeless services. • Debt Service Fund ($2,159,642) for the annual Civic Center and Margarita Recreation Center Financing Leases. • Capital Improvement Fund ($500,000) for the General Plan Update project. • Fire Facilities Acquisition Fund ($1,500,000) to be transferred into a set-aside fund to accumulate resources for the potential acquisition of property and/or fire station rehabilitation. The Fiscal Year 2022-23 ending fund balance in this new fund is estimated to be $3,000,000. Overall, the General Fund remains structurally balanced, with revenues exceeding expenditures, and reserves are fully-funded each year of the ensuing five-year financial forecast. The City continues to budget in a conservative, yet realistic, manner while keeping close watch on several economic indicators. As conditions change, adjustments to the Fiscal Year 2022-23 revenue or expenditure budgets will be recommended and presented to the City Council for their approval. MEASURE S FUND With the approval of a one-cent transactions and use tax measure in November 2016, the Measure S Fund was established to account for this new revenue source. Fiscal Year 2022-23 Measure S revenue is projected to increase by 4.0% to $37,610,081, as the local economy continues to expand. Measure S appropriations of $38,044,429 for Fiscal Year 2022-23 reflect the priorities established in Budget Policy IV – Transactions and Use Tax Funding, and confirmed by the City Council at their February 8, 2022 meeting: Public Safety (17%) The budget includes $6,596,674 of Measure S funding for 11 Police Officers ($4,135,320), staffing for Fire Station No. 95 ($1,990,964), and funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles ($170,390). Asset Management/Investment (10%) As noted in Council’s appropriation guidelines for Measure S, ensuring adequate reserves are set aside for the future replacement of City-owned assets is critical to the long-term viability of the City’s operations. For Fiscal Year 2022-23, Measure S is contributing $500,000 to each of the Fleet and Technology 14 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Replacement Funds, $660,000 to the Facilities Replacement Fund, and $2,000,000 to the Streets Maintenance Fund. Capital Improvement Program (39%) The Fiscal Year 2022-23 budget includes $14,942,089 of Measure S revenue allocated to fund multiple CIP projects. The influx on Measure S funding has allowed the City to leverage other funding sources, such as Development Impact Fees and various grant funds, to complete projects in a timelier manner. Major Projects for Fiscal Year 2022-23 include: •Community Recreation Center Renovation - $3,893,391 - to augment funding from Quimby Fees, Development Impact Fees (Parks/Recreation) and developer contributions to reconfigure portions of the CRC and enhance safety features throughout the facility. •Margarita Recreation Center - $1,765,000 – to augment funding from capital financing and Development Impact Fees (Parks/Recreation and Police Facilities) to construct a new recreation center at the Michael “Mike” Naggar Community Park. •Diaz Road Expansion - $1,328,555 - to augment Measure A and TUMF funding for the conversion of Diaz Road to a major arterial (4-lanes) between Cherry Street and Rancho California Road. •Park Restrooms/Renovations/ADA Improvements - $1,025,000 - for restrooms at the Vail Ranch and Long Canyon Parks. •The MERC Concession Upgrade - $604,000 – to upgrade and expand the concession area to a full- service kitchen. •Playground Equipment Enhancement and Safety Surfacing - $500,000 - to fund improvements at the Long Canyon Creek Park and Redhawk Parks. General/Community Services (34%) The Temecula Community Services District (TCSD) has historically been funded with voter-approved Measure C funding and program-related revenue. Measure S funding is used to augment Measure C, in order to maintain the award-winning programs, activities and events TCSD provides to the citizenry. •TCSD Operations contribution - $11,784,280 •Library contribution - $975,563 •Enhanced Custodial Services - $85,822 The ending fund balance within the Measure S Fund is projected to be $11,021,315, which will carry- forward to the ensuing fiscal year. Over the ensuing five-year period, Measure S is projected to have adequate resources to fund public safety, asset management, capital projects and general services. MAJOR SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law. The City has several Special Revenue Funds. The major Special Revenue funds are highlighted below. 15 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Fund 100 - Gas Tax: Gas Tax revenue is projected to be $3,282,718, which reflects an increase of 11.4% as volume of gasoline sales increases. These funds are transferred to the General Fund to support street and road maintenance. Fund 102 – Road Maintenance Rehabilitation Account (RMRA): Per the Road Repair and Accountability Act of 2017 (SB1-Beall), increased gas tax and vehicle registration fees were imposed to fund street and road projects and other transportation uses Statewide. RMRA revenue is projected to be $2,584,827, which is an increase of 10.1% due to the rebounding economy. These funds are allocated to the Pavement Rehabilitation Capital Improvement Project. Fund 103 – Street Maintenance: This fund was established in Fiscal Year 2018-19 to accumulate resources for the future replacement of streets and roads throughout the City. Measure S contributes annually to this fund, which has a projected Fiscal Year 2022-23 ending balance of $7,483,094. Fund 105 – NPDES In Lieu Fees: This fund was established in Fiscal Year 2019-20 to account for the collection of In Lieu fees associated with the National Pollutant Discharge Elimination System (NPDES). Revenue is received as private development subject to NPDES requirements occur. Fiscal Year 2022-23 revenue is projected to be $200,000, however no expenditures have been programmed for these funds. Fund 106 – Uptown Temecula New Streets In Lieu Fees: This fund was established in Fiscal Year 2019-20 in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In Lieu Fee. Developers within the Specific Plan who cannot build new streets will be charged the In Lieu Fee. For Fiscal Year 2022-23, revenue is projected to be $105,000, bringing the ending fund balance to $1,195,014. Fund 108 – American Rescue Plan Act (ARPA) Fund: This fund was established in Fiscal Year 2021-22 to account for the receipt of the Federal ARPA grant funding of $14,079,508, which is received in two equal installments in Fiscal Year 2021-22 and Fiscal Year 2022-23. The funds were transferred to the General Fund to support public safety services. Fund 110 – COVID-19 Pandemic Community Reinvestment Program Fund: This fund was established in Fiscal Year 2021-22 to provide grant funding to support the local economy in the rebounding from the global pandemic. Revenue is transferred into this fund from available General Fund balance. The Council approved six funding categories, including: (1) Business Support, (2) Non-Profit Support, (3) Homeless Services, (4) Housing Assistance, (5) Behavioral Health Services, and (6) Higher Education/Workforce Development. Fund 120 – Development Impact Fees (DIF): DIF revenue is projected to be $13,564,460, which reflects an increase of 122% due to the increased activity occurring in the Sommer’s Bend development as well as anticipated activity in the Heirloom Farms development. DIF revenue varies from year-to-year as it is based on anticipated development projects. The majority of DIF Revenues are transferred to the CIP to fund capital projects. Fiscal Year 2022-23 ending fund balance is projected to be $7,994,742. Fund 125 – Public, Education & Government (PEG): PEG Fund revenues are received from local cable operators for the sole purpose of supporting the access facilities within the City. PEG Revenues are projected to be $203,300, which will be spent on various technology equipment used to support the 16 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget broadcast of City Council meetings and events. Fiscal Year 2022-23 ending fund balance is projected to be $650,468. Fund 140 – Community Development Block Grant (CDBG): CDBG revenue is projected to be $1,205,894, for operations and capital projects. Prior year carry-over of CDBG-CV funds totaling $630,894 is intended to provide aid to the community in response to the COVID-19 pandemic. Fiscal Year 2022-23 ending fund balance is projected to be $1,032,675. Fund 145 – Temecula Energy Efficiency Asset (TEAM) Fund: This fund was established to capture energy efficiency rebates to be used to fund future energy efficiency projects. In Fiscal Year 2020-21, the City received a rebate of $640,754 for the acquisition of street lights and conversion to LED bulbs. These funds, combined with the existing fund balance, are programmed to fund an Electric Vehicle Charging Station capital project, lighting along Murrieta Creek, and Sports Field Lighting upgrades. Fiscal Year 2022-23 ending fund balance is projected to be $142,309. Fund 150 – AB2766 Motor Vehicle Subvention Fund: This fund was established to account for subvention funds used to implement programs/projects to reduce air pollution from motor vehicles. Fiscal Year 2022- 23 revenue is projected to be $150,489. The majority of these funds are programmed for capital projects, including the Citywide Bike Lane and Trail Program. Fiscal Year 2022-23 ending fund balance is projected to be $5,027. Fund 160 – Supplemental Law Enforcement Services Fund: This fund was established to account for state grant funds to assist cities in delivering front-line law enforcement services. Fiscal Year 2022-23 revenue is projected to be $280,665 and will be transferred to the General Fund to support law enforcement. Fund 165– Affordable Housing Fund: The Affordable Housing Fund reflects the housing-related activities of the former Temecula Redevelopment Agency. Total Revenue for Fiscal Year 2022-23 of $821,000 includes the State Department of Finance allocation of $250,000 designated for the administration of the wind down of redevelopment obligations. Expenditures reflect the ongoing administration of the City’s Affordable Housing program as well as $557,000 for the Habitat for Humanity – Old Town Units capital project. Fund 170 – Measure A: Measure A revenue is projected to be $3,280,500, which reflects a 22.3% decrease from the prior year. This revenue is restricted for use on local streets and roads, and is programmed to support street and road maintenance. Fiscal Year 2022-23 ending fund balance is projected to be $1,285,338. INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the funding of goods and services provided by one department to other benefitting departments on a cost-reimbursement basis. Additionally, the City maintains several Replacement Funds designed to accumulate resources for the future replacement of City equipment, technology, and facilities. 17 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Fund 300 – Insurance: Projected expenses total $1,517,257, which covers the cost of administering the City’s liability and property insurance programs. The projected fund balance is $722,053, which exceeds the desired balance of $450,000. Fund 305 – Workers’ Compensation: Projected expenses total $470,770, which covers the cost of administering the City’s self-insured Workers’ Compensation program. The projected fund balance is $1,668,429, which exceeds the desired balance of $1.5 million. Fund 310 – Vehicles and Equipment: Projected expenses total $670,500 to replace two fire medic squads ($426,000), a construction dump truck ($150,000), a pressure washer ($35,000), three arrow boards ($19,500) and a replacement vehicle for Community Development ($40,000). The projected fund balance is $5,274,230. Fund 320 – Information Technology: Projected expenses total $5,910,265, which provides for the management of the City’s computers, audio-visual equipment, cyber security, and telephone systems. The projected fund balance is $1,117,284. Fund 325 – Technology Replacement: Projected expenses total $160,000 to replace the City’s telephones ($30,000), a UPS battery ($50,000), a GIS plotter ($10,000) and fund the annual computer lifecycle replacement program ($70,000). The projected fund balance is $2,485,713. Fund 330 – Support Services: Projected expenses total $379,963, which provides for the management of the City’s central reception, printing and mail activities. The projected fund balance is $4,235. Fund 335 – Support Services Replacement: Projected expenses total $25,000 to replace the Central Services plotter and paper folder machines. The projected fund balance is $403,948. Fund 340 – Facilities: Projected expenses total $1,651,435, which provide for the operations and maintenance of the City’s buildings and parking structure. The projected fund balance is $589,111. Fund 350 – Facility Replacement: Projected expenses total $500,000 for the City Facilities Rehabilitation capital project. The projected fund balance is $242,473. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA) Fund 380 – SARDA: Projected expenses total $5,899,866 to pay debt service expenditures on the outstanding 2017A and 2017B Redevelopment Agency Tax Allocation Bonds. TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) The Temecula Community Services District was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs and events. TCSD also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, and library services (known as Service Level Funds). 18 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Combined revenue for TCSD totals $30,133,322, which reflects an increase of 12.7% over the prior year as TCSD programs return to pre-pandemic levels. The majority of the increase is from TCSD Operations as events, programs and recreational classes have resumed after the pandemic. Additionally, a transfer of $1 million from the COVID-19 Community Reinvestment Program Fund for homeless services is included in the Fiscal Year 2022-23 revenue projection. Combined expenditures for TCSD total $29,772,002 and reflect an increase of 6.8% over the prior year, due primarily to the re-opening of facilities, programs, classes, and events. Additionally, it is anticipated that the new Margarita Recreation Center will open in the Spring of 2023, so an addition of four full- time/authorized positions are included in the TCSD Operations budget. Ending fund balance for TCSD is projected to be $4,175,253 for Fiscal Year 2022-23. As noted in the adjacent chart, TCSD’s Special Tax (Measure C) funds approximately 24% of the District’s Parks and Recreation budget. The remaining 76% comes from Measure S and programmatic revenues. CAPITAL IMPROVEMENT PROGRAM (CIP) The City’s five-year Capital Improvement Program (CIP) is presented to the City Council under separate cover. This program provides a five-year plan for capital improvements that is updated annually to ensure compliance with the program. The impact of capital projects on maintenance and operating costs were taken into consideration in the development of the operating budget. Circulation, infrastructure, parks, affordable housing, and other various projects are identified in the CIP budget. The CIP includes a total of $793,744,301 in identified capital projects, with a total of $590,098,244 in project funding. There is $203,646,057 in “Unspecified” project funding, indicating that a revenue source has not yet been secured for these projects, which have been identified as necessary infrastructure for the City, and will require that funding sources be identified before the project construction can commence. Capital projects are categorized into four Project Types. Various sources contribute to the funding of the Capital Improvement Program, including many City Funds, State and Federal Grants, Community Facility District Funds, Successor Agency Funds, and Transportation Uniform Mitigation Fee (TUMF) Funds. Project Type Number of Projects Total Project Cost Circulation 30 619,776,487 Infrastructure 52 111,436,853 Parks/Recreation 20 44,632,961 SARDA 3 17,898,000 105 793,744,301 19 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget The City has incurred $6.5 million in debt (private placement loan) to fund the Margarita Recreation Center project. The rate on this debt is 3.42% and matures on September 1, 2033. Repayment of this debt comes from the General Fund. The City seeks all available funding sources for projects, including federal, state, and local grants, outside contributions and City funds. Total funding for the Fiscal Years 2023-27 CIP program reflects 70% from outside funding sources, with the remaining 30% provided by various City funds, including Measure S, Development Impact Fee Funds, General Fund, and several other sources. A total of nine new projects have been added to the CIP including the following: •Auto Mall Wayfinding Signs •Bike Lane and Trail Program – Ronald Reagan Sports Park Trails •Butterfield Stage Road Storm Drain Improvements •Habitat for Humanity – Old Town Units •Harveston Community Park Building Renovations and Expansion •Infill Recreation Amenities •Rancho California Road Median Improvements •The MERC Concession Upgrade •Utility Undergrounding – Main Street and Vicinity As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. Seven projects reflect the addition of ongoing operating costs, while one project identifies ongoing operating savings. The amounts identified on the table are incorporated into the General Fund Five-Year Forecast. 20 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget 2022-23 AUTHORIZED STAFFING Total authorized Full Time Equivalent (FTE) positions total 196.45 authorized positions, including one authorized/unfunded position. The increase reflects 17.75 new positions compared to the prior year, of which 10 were added as part of the Fiscal Year 2021-22 Mid-Year Budget update. All positions added since last fiscal year are summarized by department below: • Community Development (6 positions) o Code Enforcement Officer I (2) o Community Development Technician I o Building Inspector II o Planning Technician o Assistant Director of Community Development • Temecula Community Services District (5 positions) o Senior Recreation Leader o Aquatics Supervisor o Aquatics Coordinator o Community Services Coordinator (previously authorized/unfunded) o Community Services Supervisor (previously authorized/unfunded) • Public Works (4 positions) o Associate Civil Engineer o Supervising Public Works Inspector o Lead Maintenance Worker I o Maintenance Worker I • Human Resources (1 position) o Management Assistant Capital Project Operating Budget Account Description 2023-24 Projected 2024-25 Projected 2025-26 Projected 2026-27 Projected 155 - PARK RESTROOMS RENOVATIONS, EXPANSION AND AMERICANS WITH DISABILITIES ACT (ADA) IMPROVEMENTS 5250 - OTHER OUTSIDE SERVICES Janitorial Services 26,530 27,061 27,602 28,154 688 - CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT 5319 - STREET LIGHTING Electricity Savings (655,636) (675,305) (695,564) (709,475) 690 - I-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING 5415 - LANDSCAPE MAINTENANCE Required by Caltrans 56,240 58,490 60,830 62,046 692 - MARGARITA RECREATION CENTER 5100 - SALARIES & WAGES Staffing for MRC (4 positions)483,699 498,210 513,157 528,551 5240 - UTILITIES Additional Utility Costs 55,000 55,000 55,000 55,000 5250 - OTHER OUTSIDE SERVICES Janitorial/Security 50,000 50,000 50,000 50,000 5378 - CONTRACTED CLASSES Contract Classes 164,145 176,520 185,000 190,000 5418 - POOL MAINTENANCE Swimming Pool maintenance 100,000 100,000 100,000 100,000 852,844 879,730 903,157 923,551 711 - CITYWIDE SURVEILLANCE CAMERAS 5250 - OTHER OUTSIDE SERVICES Maintenance and Operations for Surveillance System 350,000 350,000 350,000 350,000 724 - CITYWIDE FINANCIAL SYSTEM UPGRADE 5211 - SOFTWARE & MAINTENANCE Annual Software Maintenance 66,934 66,934 66,934 66,934 780 - OLD TOWN SURVEILLANCE & SOUND SYSTEM 5215 - REPAIR & MAINTENANCE - EQUIPMENT Maintenance fees for Old Town Sound System 50,000 50,000 50,000 50,000 746,912 756,910 762,959 771,210 Total Incremental Operating & Maintenance Impacts 21 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget • Economic Development (1 position) o Management Analyst • Information Technology/Support Services (0.5 position) o Senior Administrative Assistant (conversion from ½ to full-time) • Finance (0.25 position) o Senior Accounting Technician-Payroll (conversion from ¾ to full-time) Total Authorized Positions remains below the peak in Fiscal Year 2007-08 by 14.3 positions. In addition to the Authorized Positions, the City employs a significant number of part-time, non-benefitted Project employees, primarily to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2022-23, an estimated 58.7 full-time equivalents (FTE) will be hired as seasonal and part-time support. Public Safety personnel is provided through contracts with Riverside County and CalFire. A total of 118.9 sworn Police Officers and 18 Community Service Officers are included in the Police budget, and a total of 71 personnel are reflected in the Fire Department budget for Fiscal Year 2022-23. BUDGET POLICIES As part of the annual budget process, in February, the Council is presented the budget priorities and policy metrics used in the current budget to discuss changes to incorporate in the next budget. On February 8, 2022, the Council affirmed that public safety will remain as the top priority and the core values outlined in the Quality of Life Master Plan will remain the guiding principles behind appropriation recommendations. Several Budget and Fiscal Policy metrics were also affirmed, with recommended changes as noted below: • Include reference to public safety staffing levels (reflected in Budget Policy IV.B. – Transactions and Use Tax Funding and Budget Policy VI.I.1.b and c – Staffing Policy) • Increase City Manager approval authority from $60,000 to $100,000 (reflected in Budget Policy XII.A – Signature Delegation Policy) • Increase the City Manager settlement authority from $25,000 to $100,000 (reflected in Budget Policy XII.B – Signature Delegation Policy) • Increase the eligibility threshold for assets to be replaced using the Technology Replacement Fund from $3,000 to $5,000 (reflected in Budget Policy VII – Asset Management and Replacement) 22 41000 Main Street, Temecula, CA 92590 ⧫ Phone (951) 694-6444 ⧫ Facsimile (951) 694-6479 City of Temecula Fiscal Year 2022-23 Annual Operating Budget Additionally, staff recommends modifications to Budget Policy VII – Asset Management and Replacement, to reflect the City’s current practice of managing the various asset replacement funds established over the past several years. Finally, staff recommends the removal of the Investments section of the Budget Policies and replace it with a stand-alone Investment Policy, updated to reflect allowable investments as outlined in state law. Per the California Government Code, Section 53646, “…the treasurer or chief fiscal officer of the local agency may annually render to the legislative body…a statement of investment policy…” This language changed from “shall” annually render to “may” roughly ten years ago, therefore this policy is only required to be approved when changes are recommended. The updated stand-alone Investment Policy will be presented to the City Council at their June 14, 2022 meeting for consideration and approval. CONCLUSION In conclusion, the City of Temecula is in a strong fiscal position with the General Fund balanced and all reserves fully funded not only in Fiscal Year 2022-23 but throughout the ensuing five-year period. The Capital Improvement Program is the largest in the City’s history and will deliver a wide array of improvements to infrastructure, facilities, affordable housing, enhanced parks, new trails and many other amenities the citizens of Temecula enjoy. I would like to express my appreciation to the City Council for providing the direction and support crucial to achieving the City’s goals. I would also like to recognize the contributions of City staff for not only creating a responsive operating budget, but also for their commitment to providing top quality services to all who live, work and play in Temecula. I would like to give special thanks to the City’s Budget Team: Jennifer Hennessy, Director of Finance; Patricia Hawk, Fiscal Services Manager; and Catlin Dorset, Senior Accounting Technician for their long hours and dedication to the City and this budget process. Sincerely, Aaron Adams City Manager 23 24 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DIRECTORY EXECUTIVE MANAGEMENT: City Manager ...................................................................................... Aaron Adams Assistant City Manager ..................................................................... Kevin Hawkins Deputy City Manager .......................................................................... Luke Watson Director of Legislative Affairs/City Clerk .................................................. Randi Johl City Attorney ................................................................................ Peter M. Thorson Director of Finance ..................................................................... Jennifer Hennessy Director of Community Development ................................................ Luke Watson Director of Public Works/City Engineer .......................................... Patrick Thomas Director of Community Services ............................................................ Erica Russo Director of Information Systems ......................................................Michael Heslin Director of Human Resources/Risk and Emergency Management ... Isaac Garibay Chief of Police ...................................................................................... Zachary Hall Division Chief/Temecula Fire Chief ........................................................ John Crater CITY OF TEMECULA BUDGET TEAM: Director of Finance ..................................................................... Jennifer Hennessy Fiscal Services Manager ........................................................................ Tricia Hawk Senior Accounting Technician ............................................................. Catlin Dorset 25 Annual Operating BudgetCITY ORGANIZATIONAL CHART* Police and Fire are contracted through Riverside CountyTemecula CitizensJames "Stew" StewartCouncil MemberJessica AlexanderCouncil MemberPeter ThorsonCity AttorneyAaron AdamsCity ManagerKevin HawkinsAssistant City ManagerRandi JohlDirector of Legislative Affairs/City ClerkZachary HallCaptain/Temecula Chief of PoliceIsaac GaribayDirector of Human Resources/Risk and Emergency ManagementPatrick ThomasDirector of Public Works/City EngineerBetsy LowreyAssistant to the City ManagerMichael HeslinDirector of Information SystemsPlanning CommissionPublic/Traffic Safety CommissionCommunity Services CommissionRace, Equity, Diversity and Inclusion Old Town Local Review BoardLuke WatsonDeputy City ManagerCity of TemeculaFiscal Year 2022‐23Annual Operating BudgetZak SchwankMayor Pro TemMaryann EdwardsCouncil MemberMatt RahnMayorJohn CraterDivision Chief/Temecula Fire ChiefJennifer HennessyDirector of FinanceErica RussoDirector of Community Services26 MISSION STATEMENT The mission of the City of Temecula is to maintain a safe, secure, clean, healthy, and orderly community; to balance the utilization of open space, parks, trail facilities, quality jobs, public transportation, diverse housing, and adequate infrastructure; and to enhance and revitalize historic areas. The City will encourage programs for all age groups, utilize its human resources, and preserve its natural resources while stimulating technology, promoting commerce, and utilizing sound fiscal policy. It is the City Council’s resolve that this mission will instill a sense of pride and accomplishment in its citizens and that the City will be known as a progressive, innovative, balanced, and environmentally sensitive community. VALUE STATEMENT TEAMWORK among all employees ENHANCEMENT of the work environment through open lines of communication MUTUAL respect of others EDUCATION of employees and citizens about the operations and accomplishments of the City CUSTOMER service is our most important product UNLIMITED potential for continued personal growth and organizational development LEADERSHIP in local government ASSUMING 100% responsibility for projects and assignments Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget 27 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget CITYWIDE LONG-TERM GOALS CORE VALUES: The Quality of Life Master Plan (QLMP) provides the framework for the City’s Strategic Budgeting activities. The City Council has set priorities and guided staff in developing six (6) core values upon which to focus time and resources (as identified in the QLMP). These areas include: Promote high quality parks and recreation programs and cultural services. Provide signature special events and cultural opportunities. Attract high quality medical facilities. Provide housing for all income types in the community. Maintain a safe and family-oriented environment. Foster an “educated community” through a wide variety of opportunities. Maintain the natural beauty of the community. Remain within the federal ranking of the top 25 safest cities. Encourage community participation in public safety and emergency preparedness. Promote high quality animal control services. Continue to aggressively mitigate graffiti and vandalism. Utilize social media to keep the community informed and involved. Proactively address traffic improvements. Minimize the impact to life, property, and the environment from natural hazards and emergency situations. A Safe and Prepared Community Economic Prosperity Continue to pursue high quality employment opportunities for Temecula residents. Create a business-friendly regulatory environment. Promote a jobs/housing balance. Improve delivery of technology services to attract businesses. Continue to promote the Temecula Valley as a destination. Fill gaps and diversify market sectors that increase sales tax revenue. Retention and expansion of existing businesses. Healthy and Livable City 28 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget SHORT TERM OBJECTIVES: In order to ensure meaningful financial priorities, each department develops Short Term Objectives rooted in the Citywide Long-Term Goals and the Core Values. Each Short-Term Objective is a department’s incremental step toward achieving the overall Citywide Long-Term Goals. Within the Departmental Information Section of this budget, each Department provides their Short- Term Objectives for the ensuing fiscal year. A Sustainable City Continue to reduce solid waste diversion to landfills. Promote and encourage mixed use infill developments along major transportation corridors. Preserve and promote open space. Encourage alternative transportation options. Promote a “walkable” community. Promote energy efficient operations and development. Actively maintain and preserve city assets and infrastructure. Transportation Mobility and Connectivity Utilize effective traffic enforcement, traffic monitoring, and planning processes to ensure the safety of Temecula motorists. Continue to maintain local roads and streets. Connect the city through a series of trails and walkways. Identify a location and develop a multi modal transit center. Connect major commercial districts through circulation improvements. Accountable and Responsive City Government Provide transparency to the public for all government transactions. Foster an organizational structure that aligns resources with demands. Diversify the city’s revenue base to ensure stability in any economic climate. Promote community involvement. Maintain overall sound fiscal policies to ensure long term solvency. Provide highly functional and sustainable city facilities and infrastructure. 29 Annual Operating Budget GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Temecula for its annual budget for the fiscal year beginning July 1, 2021. In order to receive this award, a governmental unit must publish a budget document that meets programs criteria as policy document, operations guide, financial plan, and communication device. The award is valid for a period of one year only. The City of Temecula has received this award every year since 2001. We believe our current budget continues to conform to program requirements and we are submitting it to GFOA to determine its eligibility for another award. City of Temecula Fiscal Year 2022-23 Annual Operating Budget 30 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS AWARD The California Society of Municipal Finance Officers (CSMFO) recognizes those entities with highly professional budget documents with two levels of certificates. The first level is the “Meritorious Budget Award,” which requires the entity to meet a very specific list of criteria defined by CSMFO. The second level is the “Operating Budget Excellence Award,” which requires that the organization meet even higher criteria which effectively enhances the usability of the document. In preparing the ensuing Fiscal Year budget, staff has once again followed CSMFO’s criteria. This document will be submitted to the CSMFO for the Fiscal Year 2022-23 budget award program. 31 ` s Annual Sales Tax Revenue (2021) Promenade Mall Area = $7.6M Motor Car Parkway = $7.6M Business Park = $4.2M Temecula Pkwy = $5.0M Regional Shopping = $9.9M Old Town Temecula = $0.753M City of Temecula at a Glance Demographics Median Housing Values March 2022: $728,000 March 2021: $639,000 16th Safest City in US MoneyGeek.com, Dec. 21, 2021 Median Age 36.1 Number of Jobs $143,718 Unemployment Rate (March’22) 3.4% Number of Registered Voters 66,700 Population 2022: 109,925 2021: 112,771 Top 20% TVUSD Test Scores rank in the top 20% of all public schools in California Fiscal Highlights General Fund Operating Revenue: $103,455,801 Operating Expenditures: $91,960,495 Fund Balance: $48,534,318 35% Percentage of residents with a 4-year College Degree City Motto: “Old Traditions, New Opportunities” Authorized/Benefitted Positions Sworn Police Officers # of Parks Miles of Streets Fire Personnel Capital Improvement Program $793,744,301 <> 105 Projects 195.45 119 71 322 42 Avg. Household Income 55,400 K-12 Schools: 32* Students: 26,562 Teachers: 1,074 Education Quality of Life Local Economy *23 schools recognized as “Gold Ribbon Schools” since 1995 8.75% Sales Tax Rate $1.3B Tourism Industry (2019) Human Services Family Friendly Libraries General Law City Council-Manager Form of Government Incorporated December 1, 1989 32 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget UNDERSTANDING THE BUDGET DOCUMENT This budget document provides the public with concise and readable information about City government, and displays the objectives and budget of the City of Temecula for the Fiscal Year 2022-23. The budget document is divided into the following sections: INTRODUCTION The budget document begins with the transmittal letter by the City Manager, which provides an overview of the Fiscal Year 2022-23 Operating Budget by highlighting programs, major projects and changes in revenue and expenditure allocations for the upcoming fiscal year. There is an analysis of the impact of legislation on the City budget, as well as recent economic indicators. The introduction section details Temecula’s Mission and Value Statements. The Long Term Goals and Objectives provide further detail into the policies and the goals and objectives which drive the budget process. These are linked to each Department’s long term goals and objectives. The City Directory outlines the Executive Management and Budget Team staff members who work on a daily basis implementing the goals and strategies outlined in the Annual Operating Budget. The Citywide Organization Chart displays City Departments and reporting structure. This section also includes copies of budget awards for the previous fiscal year budgets. GUIDE TO THE BUDGET DOCUMENT In addition to this document, the Guide to the Budget Document Section contains the Budgetary Fund Structure, which provides a quick graphic overview of the City’s budgetary fund structure and includes all funds that are subject to appropriation. The Description of Funds provides a narrative description of these funds which are graphically depicted in the Fund Use by Department section. The Summary of Accounting Principles explains the basis of accounting or all appropriated funds. The Budget Process and Budget Calendar describe the City’s process for preparing this year’s Annual Operating Budget. FIVE YEAR FORECAST This section outlines the City of Temecula’s five year strategic planning tool which allows the City to project the impacts of proposed programs, operating costs, and capital improvement projects in the future. This forecast assists in long range planning and policy development by ensuring that resources will be available to meet the needs of our community into the future. FINANCIAL SUMMARIES The Financial Summaries section provides a complete overview and analysis of the total resources budgeted by the organization. There is detail on each specific fund, fund balance changes, and a complete budget picture for the current and previous two fiscal years. This section includes summaries of revenues and expenditures for all appropriated Operating Budget funds. Fund balance, revenue and expenditure changes are explained in this section as well. Historical and categorical data are provided for comparative purposes. 33 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget UNDERSTANDING THE BUDGET DOCUMENT (continued) PERFORMANCE MEASURES The Performance Measures Section includes the listing of each department’s performance measures used in the development of the programs, activities and objectives for each department. The performance measures align with the City’s six Core Values identified in the Temecula 2030 Quality of Life Master Plan (QLMP) and the strategic goals established for each Core Value. DEPARTMENTAL INFORMATION The Department Information Section includes the department/program description, mission statements, and quantifiable short term objectives and performance measures for each operating program in the General Fund, Temecula Community Services District, and Internal Service Funds. Budget information is organized by department and/or cost center and a short narrative is provided which analyzes expenditure changes from the previous year. CAPITAL IMPROVEMENT PROGRAM This section summarizes the budgeted capital expenditures which are further detailed in the separate Capital Improvement Budget. This section provides a summary of all projected Capital Improvement revenues and descriptions of those sources, as well as a description of all Capital Improvement Program projects. This section also includes forecasts of operating costs associated with Capital Improvement projects which have been included as part of the operating budget. BUDGET AND FISCAL POLICIES The General Financial policies outline the City’s policies related to budget preparation, staffing, debt management, fund/district purposes and financial reporting requirements. APPENDIX This section provides supplemental financial statistical information such as, property tax information, and comparative City information. There is also a glossary of acronyms and terms to guide the reviewer in understanding this document. Additional information on the City’s fiscal affairs are available on the City’s website: http://temeculaca.gov/309/Financial-Reports Quarterly Financial Statements Comprehensive Annual Financial Reports Cities Financial Transactions Reports For further information, please contact the Temecula Finance Department at (951) 694-6430. 34 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget BUDGETARY FUND STRUCTURE General (Fund 001) Measure S (Fund 002) Fire Facility Acquisition (Fund 006) COVID‐19 Pandemic Community Reinvestment Program (Fund 110) Gas Tax (Fund 100) Road Maintenance Rehabilitation Account (RMRA) (Fund 102) Street Maintenance (Fund 103) NPDES In Lieu Fees (Fund 105) Uptown Temecula New Streets In‐Lieu Fees (Fund 106) CARES Act (Fund 107) American Rescue Plan Act (ARPA) (Fund 108) Development Impact Fees (DIF) (Fund 120) Public, Education & Government (PEG) Fees (Fund 125) Community Development Block Grant (Fund 140) Temecula Energy Efficiency Asset Management (Fund 145) AB 2766 Motor Vehicle Subvention (Fund 150) Supplemental Law Enforcement Services (Fund 160) Temecula Major Crimes Reward Fund (Fund 161) Affordable Housing (Fund 165) Measure A (Fund 170) Public Art (Fund 198) Parks and Recreation Citywide Operations (Fund 190) Service Level B – Streetlight Replacement (Fund 191) Service Level B ‐ Street Lighting (Fund 192) Service Level C ‐ Landscape/Slope Maintenance (Fund 501‐530) Service Level D ‐ Refuse and Recycling (Fund 194) Service Level R ‐ Street/Road Maintenance (Fund 195) Service Level L ‐ Harveston Lake Park Maintenance (Fund 196) Library (Fund 197) GOVERNMENTAL FUNDS GENERAL FUNDS SPECIAL REVENUE FUNDS TEMECULA COMMUNITY SERVICES (TCSD) FUNDS 35 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget BUDGETARY FUND STRUCTURE (continued) 2018 Financing Lease – Civic Center (Fund 395) 2018 Financing Lease ‐ MRC (Fund 396) •Capital Improvement Fund (Fund 210) Insurance (Fund 300) Workers’ Compensation (Fund 305) Vehicle and Equipment (Fund 310) Information Technology (Fund 320) Technology Replacement (Fund 325) Support Services (Fund 330) Support Services Replacement (Fund 335) Facilities (Fund 340) FaciliƟes Replacement (Fund 350) GOVERNMENTAL FUNDS DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS PROPRIETARY FUNDS INTERNAL SERVICES FUNDS PRIVATE – PURPOSE TRUST FUNDS Successor Agency to the Redevelopment Agency (SARDA) Debt Service (Fund 380) FIDUCIARY FUNDS 36 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget DESCRIPTION OF FUNDS The City of Temecula revenues and expenditures are accounted for in a series of funds. Each fund is an autonomous accounting entity, established in accordance with legal and professional accounting standards. Funds are used to segregate the various financial activities of a governmental entity and to demonstrate compliance with specific regulations, restrictions or limitations, (i.e., demonstrating that restricted revenues are spent only for allowed purposes). Funds used in government are classified into three broad categories: governmental, proprietary and fiduciary. Governmental funds include activities usually associated with the operations of a typical state or local government (public safety, general government activities, etc.). Proprietary funds are used in government to account for activities often found in the private sector (utilities, stadiums, and golf courses are prime examples). Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent. The appropriated funds utilized by the City of Te mecula, governmental, fiduciary, and proprietary, are detailed below. The City of Temecula details the Capital Improvement Funds in a separate document, although the Capital Improvement program and its operating impacts are outlined in this budget document in the Capital Improvement Program section. ACCOUNTING BASIS All governmental funds are accounted for and budgeted using the modified accrual basis of accounting. Their revenues are recognized when they become “measurable” and “available.” Revenues are considered measurable when they are reasonably estimable. Revenues are considered available when they will be collected either during the current period or soon enough after the end of the period to pay current year liabilities. The primary revenue sources susceptible to accrual are property and sales taxes, franchise fees, transient occupancy taxes, investment income, fines and forfeitures collected by County courts, and motor vehicle-in-lieu subventions. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest due on general long- term debt which is recognized when due. Proprietary and Fiduciary funds are accounted for and budgeted using the full accrual basis of accounting, i.e., revenues are recognized in the period earned and expenses are recognized in the period incurred. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds. Outstanding encumbrances at the end of the fiscal year are recorded as reservation of fund balance since the commitments will be paid in the subsequent year. Encumbrances do not constitute expenditures or liabilities. GOVERNMENTAL FUNDS General Funds: General Funds are used to account for most governmental functions and focus on the near-term inflows and outflows of spendable resources. 37 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget DESCRIPTION OF FUNDS (continued) General Fund (001) - This is the general operating fund for the City, utilized to account for all resources not required to be accounted for in another fund. Measure S Fund (002) - This fund is used to track the uses of the one-cent Transactions Use Tax, known as Measure S, approved by Temecula voters on November 8, 2016. This revenue source is discretionary and is to be used in accordance with the Council’s Appropriation Guidelines, noted in the City’s Budget and Fiscal Policies. Fire Facility Acquisition Fund (006) – This fund is used to accumulate the necessary funds to acquire property for a future Fire Station, construct a future Fire Station, and/or renovate existing Fire Stations. COVID-19 Pandemic Community Reinvestment Program (110) – This fund was established to provide various community grants to support the local economy in its recover from the COVID-10 global pandemic. Special Revenue Funds: Special Revenue Funds are used to account for specific resources that are legally restricted to expenditure for particular purposes. Gas Tax Fund (100) – The City maintains this fund to account for the Highway User’s Tax revenues received from the State of California under Sections 2013, 2105, 2107, and 2107.5 of the Streets and Highways Code. Road Maintenance Rehabilitation Account (RMRA) Fund (102) – This fund is to account for gasoline and vehicle taxes pursuant to the Road Repair and Accountability Act of 2017 (SB1 Beall). Monies are collected by the State of California and allocated to local agencies for streets and roads projects and other transportation uses. Street Maintenance Fund (103) – This fund was established to accumulate resources for the future replacement of streets and roads throughout the City. NPDES In Lieu Fees Fund (105) – This fund was established to account for the collection of fees to fund, or partially fund, alternative compliance projects in-lieu of meeting certain requirements of the National Pollutant Discharge Elimination System (NPDES) Permit onsite. Uptown Temecula new Streets In-Lieu Fees (106) – This fund was established in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In-Lieu Fee. The Specific Plan requires developers to dedicate right-of-way and construct new street improvements adjacent to or through their development sites. Developers within the Specific Plan who cannot contribute right-of-way and/or build new streets will be charged a new streets in-lieu fee. CARES Act (107) – This fund was established in Fiscal Year 2020-21 to account for the receipt of the one-time grant of Federal 2020 Coronavirus Aid Relief and Economic Security (CARES) Act funding of $1,382,508. The funds were transferred to the General Fund to support the City’s response to the COVID-19 global pandemic. American Rescue Plan Act (ARPA) (108) – This fund was established to account for the receipt of Federal 2021-22 American Rescue Plan Act (ARPA) funds. 38 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget DESCRIPTION OF FUNDS (continued) Development Impact Fees Fund (120) – Used to account for activity generated and funded by development applications in order to offset the effect of development. Mitigation projects include infrastructure, fire protection, public facilities and services, libraries, roads, schools, parks, traffic signal mitigation and open space. This fund is appropriated through the Capital Improvement Program budget. Public, Education & Government (PEG) Fees Fund (125) – Public Education and Government Access programming is supported by the PEG fee that is assessed to each cable subscriber. According to state law, these funds must be used only for the production of PEG Access programming. Community Development Block Grant (CDBG) Fund (140) – This fund is used to account for grants received from the U.S. Department of Housing and Urban Development (HUD). The grants are used for the redevelopment of a viable community by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of Temecula Energy Efficiency Asset Management (TEEM) Fund (145) – This fund was created to capture energy efficiency rebates and reimbursements as well as expenditure savings resulting from energy efficiency projects completed at various City facilities. AB 2766 Motor Vehicle Subvention Fund (150) – This fund is used to account for State funds that are used to implement programs and projects that reduce air pollution from motor vehicles. This fund is used for Capital projects and to account for operational costs such as the Natural Gas operated Harveston Trolley, which provides free transportation within the Temecula business district. Supplemental Law Enforcement Services Fund (160) – The City maintains this fund to account for the Supplemental Law Enforcement Services (SLESF) monies which are exclusively expended to provide front line law enforcement services provided by the State of California. These monies supplement existing services and are unable to be used to supplant any existing funding for law enforcement services provided by the City. Temecula Major Crimes Reward Fund (161) – This fund was set up to account for a reward for information that leads to the capture and conviction of the person(s) responsible for the murder of Larry Robinson and Justin Triplett. The General Fund contributed $25,000 and the public can also contribute to this fund. Affordable Housing Fund (165) – The Affordable Housing fund contains the assets as well as loan and rental income from the former Redevelopment Agency which have been transferred to the City of Temecula. Measure A Fund (170) – This fund was established to account for the City’s share of the County of Riverside’s additional one-half percent sales tax allocation. These monies are restricted for use on local streets and roads. Measure A was approved by the Riverside County voters originally in 1988 and was extended in 2002. The funds are administered by the Riverside County Transportation Commission (RCTC) and will continue to fund transportation improvements through 2039. 39 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget DESCRIPTION OF FUNDS (continued) Public Art Fund (198) – This fund was established pursuant to Temecula Municipal Code Section 5.08.040, whereby the fund serves as a depository for the fees paid in lieu of art as well as monetary donations for public art. The Public Art In Lieu fee is one-tenth of one percent of an eligible development project in excess of $100,000. Eligible uses of this fund include the design, acquisition, installation, improvement, maintenance and insurance of public artwork; offering of performing arts programs on City property for the community; and art education programs on City property for the community. Temecula Community Services District (TCSD) Funds (190‐198, 501‐530): Upon incorporation of the City of Temecula, effective December 1, 1989, voters approved the formation of the Temecula Community Services District (TCSD) to provide specified services to properties within its jurisdiction. TCSD is a separate legal entity than the City and operates under the authority of Community Services District Law. Benefit assessments, and a special tax (Measure C) are charged to property owners within the District, are received to provide specified services identified below: Parks and Recreation - Facility operations and maintenance, community recreation programs Service Level “B” - Streetlight Replacement Service Level “B” - Residential streetlights Service Level “C ” - Perimeter landscaping and slope maintenance Service Level “D” - Refuse collection, recycling, and street sweeping Service Level “R” - Street and road maintenance Service Level “L” - Harveston Lake Park maintenance Library Fund - Services at the Ronald H. Roberts Temecula Public Library on Pauba Road Debt Service Funds: Debt Service funds are used to account for the accumulation of resources and payment of all general long- term debt obligations of the City and related entities. 2018 Financing Lease - Civic Center (395) – This fund was established to account for the payment of interest and principal of the refunding of both the 2001 and 2008 Certificates of Participation (COPs). The 2001 COPs were originally issued to finance the construction of the Community Recreation Center and the 2008 COPs were originally issued to finance the construction of the Civic Center. 2018 Financing Lease - MRC (396) – This fund was established to account for the payments of interest and principal related to the financing of the renovation of the Margarita Recreation Center facility. Capital Projects Funds: Capital Projects funds are used to account for the acquisition and/or construction of major capital assets. Capital Improvement Fund (210) – This fund was established to account for the City's Capital Improvement Program revenues and expenditures. 40 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget DESCRIPTION OF FUNDS (continued) PROPRIETARY FUNDS Internal Service Funds: Internal Services Funds are used to account for the financing of goods or services by one department to other departments of the City on a cost reimbursement basis. Insurance (300) ‐ This fund was established to fund and account for the City’s liability and property insurance costs. Workers’ Compensation (305) - This fund was established to accumulate resources for Workers’ Compensation liabilities. Vehicles and Equipment (310) ‐ This fund was established to accumulate resources for the purchase of future replacement vehicles and equipment. Information Technology (320) ‐ This fund was established to account for the City’s Information Technology activities. Technology Replacement (325) - This fund was established to account for computer, software and telephone equipment and to accumulate resources for replacement of this equipment. Support Services (330) ‐ This fund was established as a cost center for the City’s central duplicating, printing, and mailing activities. Support Services Replacement (335) ‐ This fund was established to account for the City’s copy and duplicating equipment and to accumulate resources for replacement of this equipment. Facilities (340) ‐ This fund was established to account for the cost of the Civic Center, Business Incubator, City Maintenance Facility, and Civic Center Parking Structure operations and maintenance. Facilities Replacement Fund (350) ‐ This fund was established to accumulate resources for the future replacement of equipment, systems and fixtures within City-owned facilities. FIDUCIARY FUNDS Private‐Purpose Trust Funds: Private-Purpose Trust Funds are used to account for resources held and administered by the reporting government when it is acting in a fiduciary capacity for other governments. Successor Agency to the Redevelopment Agency (SARDA) Debt Service Fund (380) – This fund is used to account for payment obligations of the successor agency as a result of the State’s dissolution of Redevelopment Agencies. 41 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget FUNDS AND DEPARTMENTS City of Temecula City Funds 001 General 002 Measure S 006 Fire Facility Acquisition 100 Gas Tax 102 Road Maintenance Rehabilitation Act (RMRA) 103 Street Maintenance Fund 105 NPDES In Lieu Fees 106 Uptown Temecula New Streets In Lieu Fees 107 CARES Act 108 American Rescue Plan Act (ARPA) 110 COVID-19 Pandemic Community Reinvestment Program 120 Development Impact Fees 125 Public, Education & Government (PEG) 135 Business Incubator Resource 140 Community Development Block Grant (CDBG) 145 Temecula Energy Efficiency Asset Management 150 AB 2766 Motor Vehicle Subvention 160 Supplemental Law Enforcement Services 161 Temecula Major Crimes Reward Fund 165 Affordable Housing 170 Measure A 198 Public Art 210 Capital Improvement Program 300 Insurance 305 Workers’ Compensation 310 Vehicles and Equipment 320 Information Technology 325 Technology Replacement 330 Support Services 335 Support Services Replacement 340 Facilities 350 Facilities Replacement 380 SARDA Debt Service 395 2018 Financing Lease – Civic Center 396 2018 Financing Lease - MRC General Fund Departments 001.100 City Council 001.101 Community Support 001.110 City Manager 001.111 Office of Public Information & Economic Development 001.115 Emergency Management 001.120 City Clerk 001.130 City Attorney 001.140 Finance 001.150 Human Resources 001.161 Planning 001.162 Building & Safety 001.163 Land Development 001.164 Public Works 001.165 CIP Public Works 001.167 Parks Maintenance 001.170 Police 001.171 Fire 001.172 Animal Control 001.199 Non-Departmental 42 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget FUNDS AND DEPARTMENTS (continued) Temecula Community Services District (TCSD) TCSD Funds 195 Service Level R – Emergency Road Maintenance 196 Service Level L – Harveston Lake Park Maintenance 197 Library 501-530 Service Level C – Landscape/Slope Maintenance 190 TCSD Citywide Operations 191 Service Level B – Streetlight Replacement 192 Service Level B – Street Lighting 194 Service Level D – Refuse and Recycling TCSD Departments 190.180.999 General Operations 190.181.164 Senior Center Maintenance 190.181.999 Senior Center Operations 190.182.164 Community Rec Center Maintenance 190.182.999 Community Rec Center Operations 190.183.999 Special Events 190.184.164 Temecula Community Center Maintenance 190.184.999 Temecula Community Center Operations 190.185.164 History Museum Maintenance 190.185.999 Museum and Cultural Arts Operations 190.186.164 Aquatics Maintenance 190.186.999 Aquatics Operations 190.187.999 Sports 190.188.164 Children’s Museum Maintenance 190.188.999 Children’s Museum Operations 190.189.164 Theater Maintenance 190.189.999 Theater Operations 190.194.999 Human Services 190.195.164 Margarita Recreation Center Maintenance 190.195.999 Margarita Recreation Center Operations 190.196.164 Jefferson Rec. Center Maintenance 190.196.999 Jefferson Rec. Center Operations 190.197.999 Contract Classes 190.201.164 Responsible Compassion Maintenance 190.201.999 Responsible Compassion 190.201.999 Workforce Development 43 CIP FUNDING SOURCES BY DEPARTMENT City Council Comm. Support City Manager Econ. Development Emergency Mgmt City Clerk City Attorney Finance Support Services Human Resources Planning Building & Safety Land Development Public Works CIP Admin Parks Maintenance Police Fire Animal Control Affordable Housing Community Services Information Technology Support Services Facilities Capital Projects Governmental Funds Fund 001: General Fund *  Fund 002: Measure S Fund *  Fund 006: Fire Facility Acquisition  Fund 110: COVID‐19 Pandemic Community Reinvestment Program  Special Revenue Funds Fund 100: Gas Tax  Fund 102: Road Maintenance Rehab. Account (RMRA) Fund 103: Street Maintenance  Fund 105: NPDES In Lieu Fees  Fund 106: Uptown Temecula New Streets In Lieu Fees  Fund 107: CARES Act  Fund 108: American Rescue Plan Act (ARPA) Fund 120: Development Impact Fees (DIF) Fund 125: Public, Education & Government (PEG) Fees  Fund 135: Business Incubator Resource Fund 140: Community Development Block Grant   Fund 145: Temecula Energy Efficiency Asset Mgmt  Fund 150: AB 2766 Motor Vehicle Subvention  Fund 160: Supplemental Law Enforcement Services  Fund 161: Temecula Major Crimes Reward  Fund 165: Affordable Housing * Fund 170: Measure A * Fund 198: Public Art  Debt Service Fund Fund 395: 2018 Financing Lease (Civic Center) Fund 396: 2018 Financing Lease (MRC) Temecula Community Services District (TCSD) Fund 190: Citywide Operations *    Fund 191: Service Level B ‐ Streetlight Replacement  Fund 192: Service Level B ‐ Street Lighting * Funds 501‐530: Service Level C ‐ Landscape/Slope Maint.* Fund 194: Service Level D ‐ Refuse and Recycling * Fund 195: Service Level R ‐ Road Maintenance * Fund 196: Service Level L ‐ Harveston Lake Park Maint. * Fund 197: Library * Capital Projects Funds Fund 210: Capital Improvement Fund * Successor Agency to the Temecula RDA (SARDA) Fund 380: Debt Service  Internal Service Funds Fund 300: Insurance   Fund 305: Workers' Compensation   Fund 310: Vehicles and Equipment   Fund 320: Information Technology   Fund 325: Technology Replacement   Fund 330: Support Services   Fund 335: Support Services Replacement   Fund 340: Facilities   Fund 350: Facilities Replacement   * Denotes the City's Major Funds Annual Operating BudgetFUNDS OPERATING DEPARTMENTS City of Temecula Fiscal Year 2022‐23 Annual Operating Budget 44 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget BUDGET PROCESS The annual budget process begins in February of each year. The budget team, which includes the City Manager, Assistant City Manager, Finance Director, Fiscal Services Managers, and Management Analyst, reviews the fiscal policies and procedures and prepares five-year projections for the General Fund, Measure S Fund and Temecula Community Services District. The budget team uses these projections to develop spending priorities and department expenditure targets for the upcoming fiscal year. In February, a Budget Kickoff Workshop is held with the City Manager, Department Directors, and Department Analysts. This workshop includes a briefing on the status of the current fiscal year budget, a review of the budget process calenda r, the impacts of the current economic conditions, and a discussion of elements of the budget process. The budget preparation guidelines and department targets used in preparing department budget requests are distributed. Additionally in February, the City Council discusses the Budget Policies and Priorities and provides the budget team with any changes they wish to have reflected in the ensuing fiscal year. In late February and March, Finance holds Budget Engagement Sessions with each of the City’s five Boards and Commissions. Obtaining feedback from the commissions earlier on in the budget process allows staff to incorporate community and commission input and confirm budgetary priorities. Preparation of budget requests includes comparative analysis of historic and current expenditure levels. Department revenue estimates are compiled from projections of activity for the upcoming fiscal year. The Executive Team, which consists of Department Directors and the City Manager, meets shortly after requests are submitted to outline and prioritize requests. This includes a review of the following: ❖Expenditure requests above the established department target; ❖Requests for new equipment (greater than $5,000) or vehicles; ❖Requests for information technology; ❖Personnel requests, including temporary personnel, and any proposed reclassifications. Several tools are utilized to determine and reinforce budget priorities and guide appropriation recommendations, as diagrammed below. 45 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget BUDGET PROCESS (continued) During March and April, the budget team holds meetings with each department to discuss their budget requests and to obtain additional information to assist in the resolution of the requests. Following this review, department staff performs a final adjustment to their line item submissions and develops an internal Preliminary Budget to review with the City Manager. In May, a public City Council budget workshop is held to receive public comment and to review the components of the Proposed Budget and any modifications to fiscal policies, prior to formal consideration for adoption. Any changes based on this review are incorporated prior to adoption at the following City Council meeting, which occurs in early June. All appropriations lapse at year-end, except for those relating to grants and encumbrances approved for carryover to the following fiscal year. The City Council has the legal authority to amend the budget at any time during the fiscal year. Budgetary controls are maintained to ensure compliance with the budget as approved by the City Council. Adjustments between departments or requests for additional funding require the approval of the City Council. As referenced in the Budget Resolution, the City Manager has the authority to make changes within departmental budgets. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the department level. The City has a formalized midyear budget review process which is used to update the appropriations and revenue projections halfway through the fiscal year. The City begins this process in December by analyzing revenue projections, service contracts, new City Council priorities, and the impacts of legislation from the State and Federal Government. This information is compiled into an updated five year projection. In early January, departments review their individual budgets to identify any savings or to request additional funds to meet the needs of new programs or spending priorities. The result is a final balanced budget document that ensures that sufficient funding is available to meet the updated objectives and priorities for the remainder of the fiscal year. This document is taken to the City Council for adoption in February. Preliminary Budget (March/April) Proposed Budget (May) Adopted Budget (June) 46 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget BUDGET PROCESS (continued) Legend Process begins with analysis of prior year activity and update of five year projections Meeting with City Manager, Finance Director and Budget team to review prior year performance and identify upcoming budget goals Update calendar, standard forms and procedures, calculate budget targets Kickoff Meeting with Department Heads and Department Analysts Review City financial policies, recommend changes Deliverables to Departments ·Report of Prior Year Spending ·Target (Not to Exceed) Amount ·List of Citywide Long Term Goals ·Budget Calendar Create detailed expenditure and revenue projections Meet with department staff to develop annual objectives based on Citywide long term goals Compile citywide budget requests and revenues for review Deliverables from Departments ·Revenue projections, expenditure requests ·Over target requests ·Request for Equipment/Vehicle ·Information Technology Request ·Project staffing request ·Personnel changes ·Department objectives and performance measures City Manager and Executive Team review requests and set priorities for spending City Manager and Budget team meet with departments to further refine requests Public City Council workshop presentation to outline budget requests and policy recommendations to City Council and the community Does Council have any changes? Yes Budget Requests, Revenues, Goals, Performance Measures, and Policies are all adopted at one City Council meeting Final published budget document prepared for review by public and distributed on City website Yes No Departments review and adjust budgets throughout the yearAdjustment City Manager approval City Council approval Less than $100,000 and intradepartmental Greater than $100,000 or interdepartmental City Manager/Budget Team Executive Team Finance Staff Department Analysts City Council determines budget priorities and fiscal policy metrics 47 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget BUDGET ENGAGEMENT SESSIONS The budget process includes separate Budget Engagement Sessions held with the City’s five Board and Commissions early on in the development of the budget. The Board and Commission members were asked to provide their feedback on the following three questions: 1)As a Board/Commission Member, do you feel the City’s investment of financial resources is in line with the community’s priorities? 2)If yes, which programs/projects are most beneficial to our community? 3)If not, how could the City better align its spending with community priorities? Overwhelmingly, the Board/Commission Members agreed that the City has invested wisely and met/exceeded the needs and priorities of the community. Past Councils have been very deliberate to maintain Temecula’s high quality of life, parks/amenities and prioritizing public safety, all of which have made Temecula a desirable place to live. The diagram below summarizes the feedback from the Budget Engagement Sessions and identify the common themes which have been addressed in the Operating and Capital Budgets. Planning Commission Agree that public safety is top priority City should look inviting to visitors/maintain beautification investment Concerns over inflation Expand outreach to Senior population Provide natural plant/community gardens Build aquatics/swimming complex Common Suggestions Maintain investment in public safety as top priority Address traffic congestion and affordable housing Ongoing community engagement Public/Traffic Safety Commission Continue investment in traffic mgmt Review public safety departments’ budget requests Display progress and investment in pavement management program Community Services Commission City’s priorities are in line with the community Expand Circulation projects to include trails/bike lanes/active transportation Appreciates that revenues exceed expenditures Open space adds to the charm of Temecula and should be maintained Race, Equity, Diversity & Inclusion (REDI) Commission Invest in parks/amenities on the west-side of the City Requests budget line item for Commissions for training Continue to invest in special needs amenities and programs Old Town Local Review Board Public safety, traffic circulation and parks are high priorities Agree that the City investments align with the community’s priorities 48 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget FISCAL YEAR 2022-23 Budget Calendar Date Item Responsible Department 1/26/22 Update General Fund and TCSD Revenue & Finance Expenditure Five‐Year Forecast 2/8/22 City Council Review of Budget Policies & Priorities City Manager/Finance Feb‐Mar Budget Engagement Sessions with City’s 5 Boards and Finance Commissions 2/14/22 Annual Operating Budget Kick‐Off Meeting All Departments 2/23/22 Capital Improvement Program Kick‐Off Meeting All Departments 3/15 – 3/21 AOB Review Meetings with ACM & Finance Director All Departments 3/25/22 CIP Project Requests due All Departments 3/28/22 Preparation of Internal Service Fund Allocations Finance 3/30 & 4/6 CIP Review Meetings with ACM & Finance Director All Departments 4/4/22 Department Narratives for AOB due All Departments 4/5/22 City Manager review of Operating Requests City Manager/Finance 4/11/22 Appendices due All Departments 4/15/22 Finalize Budget Policies City Manager/Finance 4/28/22 Public/Traffic Safety Commission review of CIP Public Works 5/6/22 CIP and AOB Document Distribution Finance 5/9/22 Community Services Commission review of CIP TCSD 5/17/22 Strategic Finance Ad Hoc Subcommittee Meeting City Manager/Finance 5/18/22 Planning Commission review of CIP Community Development 5/19/22 City Council Budget Workshop All Departments 6/14/22 City Council Meeting – Budget Adoption All Departments 49 50 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget LONG RANGE FINANCIAL PROJECTION In addition to the Annual Operating Budget and Capital Improvement Program, the City of Temecula also prepares a Five-Year Financial Projection for the General Fund, Measure S Fund and Temecula Community Services District Funds. The long-range forecasts serve as a strategic planning tool to help evaluate the City ’s ability to meet its long-term obligations. The benefit of long-range planning is to alert decision- makers of trends in time to implement changes, if necessary. GENERAL FUND REVENUE General Fund Revenue is projected by line item using a combination of known information and anticipated trends for the coming five year period. The City’s Budget Team works in tandem with Community Development to identify future projects that could affect revenue levels, such as the addition of new housing developments and commercial establishments. The City also utilizes Sales and Property Tax consultants to assist with identifying statewide trends that may impact City revenues. Revenue Forecasting Assumptions Tax revenues – projected based on recent growth trends combined with known changes in the economy, such as the addition of new businesses or hotels. Licenses, Permits and Service Charges – projected based on development projects for which the City has received a planning application and is actively pursuing building permits. Intergovernmental revenues – projected based on the growth in the City’s overall assessed valuation, as this revenue source reflects Property Tax in Lieu of Vehicle License Fees. Reimbursements – this revenue source primarily reflects the transfer of funds from the Capital Improvement Program (CIP) to reimburse the Public Works department for the administration of the CIP program. Operating Transfers In –projected based on assumed inflationary growth factors. Operating Transfers In – Measure S –projected based on the General Fund expenditures eligible for Measure S funding, in accordance with the Appropriation Guidelines noted in the Budget and Fiscal Policies. Public Safety personnel and equipment are the primary recipients of Measure S Transfers. GENERAL FUND EXPENDITURES General Fund Expenditure trends are developed using a number of economic assumptions that are applied to the category of expenditures. For Salary and Benefit projections, the City’s Budget T eam reflects any anticipated changes in staffing levels, CalPERS pension contribution rates, negotiated terms from the City’s employment contracts, and Public Safety Contract projections received from the County of Riverside. Non- salary expenditure projections were targeted to include a 2% inflationary factor, with any requests in excess of 2% justified on a case-by-case basis. Expenditure Forecasting Assumptions Salaries – projected using current employee salary levels, plus eligible merit and/or negotiated cost of living increases for the ensuing fiscal years, plus newly authorized positions, less any known decreases to authorized positions. 51 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget Benefits – projected using an employer contribution pension rate of 26% of labor costs, plus any changes pursuant to any approved employment contracts. While the CalPERS pension rate is projected to be 37.05% for Fiscal Year 2022-23, the City will utilized funds accumulated in its Section 115 Irrevocable Pension Trust when needed, in order to stabilize the Benefits budget as CalPERS rates are anticipated to increase significantly over the next decade. Operations and Maintenance Costs – projected utilizing recent trends, adjusted for one-time expenditures and other known anomalies, plus known contractual increases. Internal Service Fund Allocations - projected utilizing recent trends, adjusted for one-time expenditures and other known anomalies, plus known contractual increases. GENERAL FUND ANALYSIS The General Fund Forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully-funded in all five years. Ending Fund Balance for Fiscal Year 2022-23 is projected to be $48,534,318, of which $22,990,124 are committed to fulfilling the Fund’s reserves. A total of $386,630 of fund balance is committed to cover the costs of a Police Officer position funded by the Pechanga Tribe, plus $479,443 is assigned to future Capital Improvement Projects. A total of $24,678,121 in fund balance is unassigned and available for one-time appropriations. Fiscal Year 2022-23 General Fund Revenue is projected to increase by 3.2% over the prior year with a total of $103,455,801, as the local economy continues to expand and rebound after the global pandemic. Tax revenues are projected to increase by 4.3%, with the solid growth expected in Property T ax (6.3%), Sales Tax (3.9%), Tran sient Occupancy Tax (3.0%) and Tr ansfer s In from Measure S (1.8%) to support Public Safety. Total Fiscal Year 2022-23 General Fund Operating Expenditures total $91,960,495, which represents a 10.6% increase over the prior fiscal year, due to the investment in the City ’s workforce through increased staffing levels and competitive salary adjustments. The Police Department is projected to increase by 8.9%, due to the addition of two sworn officers and a 2.5% projected increase in the contract with the Riverside County Sheriff ’s Department. The Fire Department is projected to increase by 18%, due to the expiration of a reduced CalPERS Pension rate reflected in the County ’s contract with CalFire. 52 % Adjusted % Proposed % Projected % Projected % Projected % Projected %Actuals Change Budget Change Budget Change Budget Change Budget Change Budget Change Budget ChangeRevenue:Property Tax9,413,841 6.6% 9,861,418 4.8% 10,481,183 6.3% 10,877,511 3.8% 11,266,909 3.6% 11,674,997 3.6% 12,098,497 3.6%Sales and Use Tax42,573,718 20.7% 45,979,616 8.0% 47,818,800 4.0% 48,775,176 2.0% 48,775,176 0.0% 49,750,680 2.0% 50,745,693 2.0% Less: Sales Tax Sharing Agmt(1,216,873) ‐10.1% (1,277,716) 5.0% (1,362,404) 6.6% (1,403,276) 3.0% (1,445,374) 3.0% (1,488,736) 3.0% (1,533,398) 3.0%Franchise Fees3,724,781 22.5% 3,738,356 0.4% 3,775,740 1.0% 3,813,497 1.0% 3,851,632 1.0% 3,890,148 1.0% 3,929,050 1.0%Transient Occupancy Tax3,022,209 13.5% 3,746,636 24.0% 3,859,035 3.0% 4,227,194 9.5% 5,103,194 20.7% 5,256,290 3.0% 5,413,978 3.0%Special Tax (Measure C)1,892,962 2.8% 1,872,624 ‐1.1% 1,881,987 0.5% 1,891,397 0.5% 1,900,854 0.5% 1,910,358 0.5% 1,919,910 0.5%Licenses, Permits and Service Charges6,733,349 20.9% 5,862,032 ‐12.9% 5,087,844 ‐13.2% 5,189,601 2.0% 5,293,393 2.0% 5,399,261 2.0% 5,507,246 2.0%Fines and Forfeitures539,794 ‐10.2% 503,343 ‐6.8% 513,410 2.0% 523,678 2.0% 534,152 2.0% 544,835 2.0% 555,732 2.0%Use of Money and Property(179,787) ‐118.0% 286,125 ‐259.1% 291,848 2.0% 297,684 2.0% 303,638 2.0% 309,711 2.0% 315,905 2.0%Intergovernmental Revenues8,883,683 1.9% 9,280,885 4.5% 9,912,006 6.8% 10,310,656 4.0% 10,718,222 4.0% 11,147,246 4.0% 11,592,374 4.0%Reimbursements3,079,963 26.0%3,313,257 7.6% 3,814,823 15.1% 4,062,188 6.5% 4,291,544 5.6% 4,450,593 3.7% 3,495,439 ‐21.5%Miscellaneous196,957 ‐32.0%181,375 ‐7.9%185,003 2.0%188,703 2.0%192,477 2.0%196,326 2.0%200,253 2.0%Subtotal ‐ Operating Revenues 78,664,598 14.2% 83,347,950 6.0% 86,259,273 3.5% 88,754,009 2.9% 90,785,815 2.3% 93,041,709 2.5% 94,240,679 1.3%Operating Transfers In ‐ Gas Tax/SLESF/CARES Act4,264,863 50.2% 3,545,256 ‐16.9% 3,774,278 6.5% 3,715,656 ‐1.6% 3,782,624 1.8% 3,850,930 1.8% 3,920,603 1.8%Operating Transfers In ‐ ARPA‐ 0.0% 7,039,754 0.0% 7,039,754 0.0%‐ ‐100.0%‐ 0.0%‐ 0.0%‐ 0.0%Operating Transfers In ‐ Measure S5,944,780 6.3% 6,266,670 5.4% 6,382,496 1.8% 6,748,014 5.7% 7,136,348 5.8% 10,549,005 47.8% 12,987,604 23.1%Total Revenues & Transfers In88,874,241 14.9% 100,199,630 12.7% 103,455,801 3.2% 99,217,679‐4.1%101,704,787 2.5% 107,441,644 5.6% 111,148,886 3.5%Prior Version (FY21‐22 Adopted Budget)87,358,298 90,444,816 94,225,797 97,919,932 102,559,922 n/aExpenditures by Dept: City Council474,861 ‐2.7% 563,253 18.6% 615,218 9.2% 638,159 3.7% 662,062 3.7% 686,968 3.8% 712,924 3.8% Community Support109,082 ‐2.8% 125,000 14.6% 125,000 0.0% 125,000 0.0% 125,000 0.0% 125,000 0.0% 125,000 0.0% City Manager1,553,078 1.8% 2,083,202 34.1% 1,915,685 ‐8.0% 1,991,073 3.9% 2,069,546 3.9% 2,151,235 3.9% 2,236,274 4.0% Economic Development1,441,650 3.8% 1,526,823 5.9% 1,766,871 15.7% 1,832,901 3.7% 1,901,619 3.7% 1,973,139 3.8% 2,047,582 3.8% Emergency Management486,178 120.9% 394,595 ‐18.8% 552,045 39.9% 607,498 10.0% 633,793 4.3% 655,966 3.5% 629,055 ‐4.1% City Clerk1,244,116 5.0% 1,432,145 15.1% 1,538,835 7.4% 1,598,546 3.9%1,660,715 3.9% 1,725,446 3.9% 1,792,849 3.9% City Attorney426,146 ‐18.7% 450,000 5.6% 472,500 5.0% 481,950 2.0% 491,589 2.0% 501,421 2.0% 511,449 2.0% Finance2,468,771 ‐5.3% 2,953,410 19.6% 3,282,539 11.1% 3,414,343 4.0% 3,551,597 4.0% 3,694,534 4.0% 3,843,391 4.0% Human Resources919,263 ‐7.0% 1,381,432 50.3% 1,459,985 5.7% 1,511,925 3.6% 1,565,882 3.6% 1,621,938 3.6% 1,680,179 3.6% Planning2,269,034 ‐8.1% 3,015,317 32.9% 3,621,189 20.1% 3,758,611 3.8% 3,901,579 3.8% 4,050,328 3.8% 4,205,100 3.8% Building & Safety3,116,141 4.3% 3,859,707 23.9% 4,441,663 15.1% 4,629,137 4.2% 4,807,539 3.9% 4,993,160 3.9% 5,186,301 3.9% Land Development1,599,976 ‐5.7% 2,074,366 29.6%2,185,713 5.4% 2,272,229 4.0% 2,362,302 4.0% 2,456,081 4.0% 2,553,724 4.0% Public Works5,069,156 ‐0.9% 6,889,118 35.9% 7,283,477 5.7% 7,636,393 4.8% 7,984,567 4.6% 8,345,958 4.5% 8,721,098 4.5% CIP Admin2,406,605 3.7% 2,770,609 15.1% 3,276,279 18.3% 3,409,511 4.1% 3,548,233 4.1% 3,692,674 4.1% 3,843,071 4.1% Parks Maintenance3,892,486 ‐0.5% 4,484,929 15.2% 5,291,811 18.0% 5,310,382 0.4% 5,453,203 2.7% 5,600,423 2.7% 5,752,195 2.7% Police34,833,531 3.8% 37,715,317 8.3% 41,061,970 8.9% 43,041,100 4.8% 45,144,000 4.9% 47,351,033 4.9% 49,667,380 4.9% Fire7,465,541 ‐22.2% 9,513,031 27.4% 11,222,582 18.0% 12,488,355 11.3% 13,408,580 7.4% 14,887,241 11.0% 16,488,968 10.8% Animal Control451,864 ‐4.5% 500,958 10.9% 452,028 ‐9.8% 456,548 1.0% 461,114 1.0% 465,725 1.0% 470,382 1.0% Non‐Departmental1,202,696 ‐27.7% 1,391,280 15.7% 1,395,106 0.3% 1,810,054 29.7% 1,816,464 0.4% 1,822,582 0.3% 1,828,901 0.3%Total Expenditures71,430,176 ‐2.0% 83,124,494 16.4% 91,960,495 10.6% 97,013,714 5.5% 101,549,383 4.7% 106,800,851 5.2% 112,295,825 5.1%Prior Version (FY21‐22 Adopted Budget)81,682,267 85,645,527 89,890,194 94,398,467 99,710,114 Revenue Over Expenditures17,444,065 17,075,136 11,495,306 2,203,965 155,404 640,793 (1,146,939) Prior Version (FY21‐22 Adopted Budget)5,676,031 4,799,289 4,335,603 3,521,465 2,849,809 n/aGENERAL FUND - FIVE YEAR FINANCIAL PROJECTION FY 20‐21FY 24‐25FY 26‐27FY 23‐24FY 22‐23FY 21‐22FY 25‐26City of TemeculaFiscal Year 2022‐23Annual Operating Budget53 % Adjusted % Proposed % Projected % Projected % Projected % Projected %Actuals Change Budget Change Budget Change Budget Change Budget Change Budget Change Budget ChangeGENERAL FUND - FIVE YEAR FINANCIAL PROJECTION FY 20‐21FY 24‐25FY 26‐27FY 23‐24FY 22‐23FY 21‐22FY 25‐26City of TemeculaFiscal Year 2022‐23Annual Operating Budget Transfers Out and One Time Payments: COVID‐19 Pandemic Community Reinvestment Program(7,040,000) (7,040,000) Transfer to Capital Improvement Fund(100,000) (1,022,506) (500,000) (479,443) ‐ ‐ ‐ ‐ I‐15 Congestion Relief‐(190,542) (79,443) ‐ Recycled Water Conversion (55,697) ‐ Sidewalks ‐ DLR Drive(100,000) (276,267) ‐ General Plan Update‐(500,000) (500,000) (400,000) Fire Facility Acquistion Fund‐ (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) 2018 Financing Lease (Civic Center)(2,077,767) (1,962,107) (1,603,835) (1,609,180) (1,610,960) (1,610,960) (1,610,960) 2018 Financing Lease (MRC)(555,808) (555,808) (555,807) (555,808) (555,808) (555,808) (555,808) Section 115 Pension Trust(2,000,000) (2,000,000) ‐ ‐ ‐ ‐ ‐ Total Transfers Out/One‐Time Pmts(4,733,575) (14,080,421) (11,199,642) (4,144,430) (3,666,767) (3,666,767) (3,666,767) Revenues Over/(Under) Expenditures 12,710,490 2,994,715 295,664 (1,940,465) (3,511,364) (3,025,974) (4,813,706) Beginning Fund Balance32,533,448 45,243,938 48,238,653 48,534,318 46,593,853 43,082,489 40,056,515 Ending Fund Balance45,243,938 48,238,653 48,534,318 46,593,853 43,082,489 40,056,515 35,242,809 Prior Version (FY21‐22 Adopted Budget)27,756,513 28,701,293 29,261,498 29,532,113 29,386,811 28,569,852 n/aDesired Reserve Balance (25%)17,857,544 20,781,123 22,990,124 24,253,429 25,387,346 26,700,213 28,073,956 Reserve Balance17,857,544 20,781,123 22,990,124 24,253,429 25,387,346 26,700,213 28,073,956 % Funded100%100%100%100%100%100%100%Fund Balance ComponentsCommitted to:(334,605) 1,462,830 Economic Uncertainty (20%)14,286,035 16,624,899 18,392,099 19,402,743 20,309,877 21,360,170 22,459,165 Secondary Reserve (5%)3,571,509 4,156,225 4,598,025 4,850,686 5,077,469 5,340,043 5,614,791 Pechanga IGA352,363368,219386,630368,219368,219368,219368,219Nonspendable: Inventory/Prepaids/DepositsAssigned to: Capital Projects1,022,506 500,000 479,443 ‐ ‐ ‐ ‐ Unassigned:26,011,525 26,589,311 24,678,121 21,972,205 17,326,925 12,988,084 6,800,634 Total Fund Balance as of 6/3045,243,93848,238,65348,534,31846,593,85343,082,48940,056,51535,242,80936.4%32.0%26.8%22.6%17.1%12.2%6.1% Unassigned Fund Balance as % of Operating Expenditures 54 FY 20‐21 FY 21‐22% ChgFY 22‐23% ChgFY 23‐24 % ChgFY 24‐25% ChgFY 25‐26% ChgFY 26‐27% ChgActualsAdjustedFrom Prior YrProposedFrom Prior YrProjectionFrom Prior YrProjectionFrom Prior YrProjectionFrom Prior YrProjectionFrom Prior YrPLANNING769,219 987,088 28.3% 750,000‐24.0% 765,000 2.0% 780,300 2.0% 795,906 2.0% 811,824 2.0%Grants00 0.0%0 0.0%0 0.0%0 0.0%0 0.0%0 0.0%BUILDING2,282,931 2,458,160 7.7% 1,881,768‐23.4% 1,919,404 2.0% 1,957,792 2.0% 1,996,948 2.0% 2,036,887 2.0%LAND DEVELOPMENT2,292,104 1,187,488‐48.2% 1,211,238 2.0% 1,235,463 2.0% 1,260,172 2.0% 1,285,375 2.0% 1,311,083 2.0%PUBLIC WORKS92,054 50‐99.9% 150,150 0.0% 153,153 2.0% 156,216 2.0% 159,340 2.0% 162,527 2.0%PARKS & FACILITIES MAINTENANCESpecial Tax (Measure C)1,892,962 1,872,624‐1.1% 1,881,987 0.5% 1,891,397 0.5% 1,900,854 0.5% 1,910,358 0.5% 1,919,910 0.5%Lease Income73,922 68,773‐7.0% 70,148 2.0% 71,551 2.0% 72,982 2.0% 74,442 2.0% 75,931 2.0%Plan Check and Inspection Fees2,345 0.0% 2,442 4.1% 2,491 2.0% 2,541 2.0% 2,591 2.0% 2,643 2.0%POLICEParking Citations75,766 70,000‐7.6% 71,400 2.0% 72,828 2.0% 74,285 2.0% 75,770 2.0% 77,286 2.0%Miscellaneous83,814 91,250 8.9% 93,075 2.0% 94,937 2.0% 96,835 2.0% 98,772 2.0% 100,747 2.0%Vehicle Impound Fees117,986 70,000‐40.7% 71,400 2.0% 72,828 2.0% 74,285 2.0% 75,770 2.0% 77,286 2.0%Reimbursements112,142 136,500 21.7% 139,230 2.0% 142,015 2.0% 144,855 2.0% 147,752 2.0% 150,707 2.0%Grants0 0.0%0 0.0%0 0.0%0 0.0%0 0.0%0 0.0%FIREVarious1,035,446 961,956‐7.1% 822,002‐14.5% 838,442 2.0% 855,211 2.0% 872,315 2.0% 889,761 2.0%Grants3,5000‐100.0%0 0.0%0 0.0%0 0.0%0 0.0%0 0.0%NON‐DEPARTMENTALResidual RPTTF Distribution86,713 103,000 18.8% 106,090 3.0% 109,273 3.0% 111,458 2.0% 113,687 2.0% 115,961 2.0%Property Tax (Secured)7,674,367 8,034,073 4.7% 8,529,201 6.2% 8,870,849 4.0% 9,219,110 3.9% 9,584,907 4.0% 9,965,047 4.0%Property Tax (Unsecured)341,549 423,037 23.9% 488,769 15.5% 499,553 2.2% 510,547 2.2% 522,093 2.3% 534,093 2.3%Supplemental Tax‐AB 2345204,225 80,800‐60.4% 100,000 23.8% 103,000 3.0% 105,060 2.0% 107,161 2.0% 109,304 2.0%Property Transfer Tax1,036,493 1,146,700 10.6% 1,181,101 3.0% 1,216,534 3.0% 1,240,865 2.0% 1,265,682 2.0% 1,290,996 2.0%Franchise Fees3,724,781 3,738,356 0.4% 3,775,740 1.0% 3,813,497 1.0% 3,851,632 1.0% 3,890,148 1.0% 3,929,050 1.0%Transient Occupancy Tax3,022,209 3,746,636 24.0% 3,859,035 3.0% 4,227,194 9.5% 5,103,194 20.7% 5,256,290 3.0% 5,413,978 3.0%Sales and Use Tax ‐ State of Calif.42,573,718 45,979,616 8.0% 47,818,800 4.0% 48,775,176 2.0% 48,775,176 0.0% 49,750,680 2.0% 50,745,693 2.0% Less: Sales Tax Sharing Agreement(1,216,873) (1,277,716) 5.0% (1,362,404) 6.6% (1,403,276) 3.0% (1,445,374) 3.0% (1,488,736) 3.0% (1,533,398) 3.0%Homeowner Exemption70,495 73,808 4.7% 76,022 3.0% 78,303 3.0% 79,869 2.0% 81,466 2.0% 83,095 2.0%MVLF‐ property tax in lieu8,798,060 9,194,656 4.5% 9,824,052 6.8% 10,220,943 4.0% 10,626,715 4.0% 11,053,909 4.0% 11,497,170 4.0%Motor Vehicle in Lieu‐ State82,123 86,229 5.0% 87,954 2.0% 89,713 2.0% 91,507 2.0% 93,337 2.0% 95,204 2.0%Vehicle Code Fines346,041 363,343 5.0% 370,610 2.0% 378,022 2.0% 385,583 2.0% 393,294 2.0% 401,160 2.0%GENERAL FUND REVENUE - FIVE YEAR PROJECTIONSCity of TemeculaFiscal Year 2022‐23Annual Operating Budget55 FY 20‐21 FY 21‐22% ChgFY 22‐23% ChgFY 23‐24 % ChgFY 24‐25% ChgFY 25‐26% ChgFY 26‐27% ChgActualsAdjustedFrom Prior YrProposedFrom Prior YrProjectionFrom Prior YrProjectionFrom Prior YrProjectionFrom Prior YrProjectionFrom Prior YrGENERAL FUND REVENUE - FIVE YEAR PROJECTIONSCity of TemeculaFiscal Year 2022‐23Annual Operating BudgetBids & Proposals 4,750 4,845 2.0% 4,942 2.0% 5,041 2.0% 5,142 2.0% 5,244 2.0% 5,349 2.0%Business Licenses 256,845 260,100 1.3% 265,302 2.0% 270,608 2.0% 276,020 2.0% 281,541 2.0% 287,171 2.0%Right of way advertising 14,400 9,360‐35.0% 9,547 2.0% 9,738 2.0% 9,933 2.0% 10,132 2.0% 10,334 2.0%Miscellaneous 98,743 80,765‐18.2% 82,380 2.0% 84,028 2.0% 85,708 2.0% 87,423 2.0% 89,171 2.0%Investment Interest 77,241 72,500‐6.1% 73,950 2.0% 75,429 2.0% 76,938 2.0% 78,476 2.0% 80,046 2.0%Rental Income 58,254 137,352 135.8% 140,099 2.0% 142,901 2.0% 145,759 2.0% 148,674 2.0% 151,648 2.0%Reimbursements ‐ Miscellaneous39,526 30,514‐22.8% 188,046 516.3% 191,807 2.0% 195,643 2.0% 199,556 2.0% 203,547 2.0%Reimbursements ‐ Services CFDs0 429,992 0.0% 643,346 49.6% 802,137 24.7% 929,375 15.9% 982,823 5.8%0‐100.0%Reimbursements ‐ Capital Improvement Program 2,196,284 2,290,748 4.3% 2,402,842 4.9% 2,477,152 3.1% 2,553,796 3.1% 2,632,850 3.1% 2,632,850 0.0%Reimbursements ‐ Pechanga IGA688,803 352,363‐48.8% 368,219 4.5% 375,938 2.1% 394,735 5.0% 414,472 5.0% 435,195 5.0%Operating Transfer In ‐ Gas Tax4,264,863 3,047,672‐28.5% 3,282,716 7.7% 3,348,370 2.0% 3,415,338 2.0% 3,483,644 2.0% 3,553,317 2.0%Operating Transfer In ‐ COPS279,850 0.0% 367,286 31.2% 367,286 0.0% 367,286 0.0% 367,286 0.0% 367,286 0.0%Operating Transfer In ‐ Fire Station 73 Repayment190,327 0.0% 124,276‐34.7%0‐100.0%0 0.0%0 0.0%0 0.0%Operating Transfer In ‐ Fund 161 Major Crimes27,407 0.0%0‐100.0%00.0%0 0.0%0 0.0%0 0.0%Operating Transfer In ‐ ARPA Fund7,039,754 0.0% 7,039,754 0.0%0‐100.0%0 0.0%0 0.0%0 0.0%Operating Transfer In ‐ Measure S Fund5,944,780 6,266,670 5.4% 6,382,496 1.8% 6,748,014 5.7% 7,136,348 5.8% 10,549,005 47.8% 12,987,604 23.1%Lease Income8,126 7,500‐7.7% 7,650 2.0% 7,803 2.0% 7,959 2.0% 8,118 2.0% 8,281 2.0%State Mandated Cost Reimbursement33,532 44,000 31.2% 44,000 0.0% 44,000 0.0% 44,000 0.0% 44,000 0.0% 44,000 0.0% AB1379 Collection State Imposed $4 Fee9,675 29,140 201.2% 29,140 0.0% 29,140 0.0% 29,140 0.0% 29,140 0.0% 29,140 0.0%Change in Fair Value of Investments(397,331)0‐100.0%0 0.0%0 0.0%0 0.0%0 0.0%0 0.0%TOTAL 88,874,241 100,199,630 12.7% 103,455,801 3.2% 99,217,679‐4.1% 101,704,787 2.5% 107,441,644 5.6% 111,148,886 3.5% 56 20‐21 21‐22 % 22‐23 % 23‐24 % 24‐25 % 25‐26 % 26‐27 %Actuals Adjusted Change Proposed Change Projection Change Projection Change Projection Change Projection Change City Council: Salaries114,854 136,530 18.9% 148,276 8.6% 154,207 4.0% 160,375 4.0% 166,790 4.0% 173,462 4.0%O&M123,839 207,999 68.0% 211,226 1.6% 215,451 2.0% 219,760 2.0% 224,155 2.0% 228,638 2.0%ISF236,168 218,724 ‐7.4% 255,716 16.9% 268,502 5.0% 281,927 5.0% 296,023 5.0% 310,824 5.0%474,861 563,253 18.6%615,218 9.2%638,159 3.7%662,062 3.7%686,968 3.8%712,924 3.8% Community Support109,082 125,000 14.6%125,000 0.0%125,000 0.0%125,000 0.0%125,000 0.0%125,000 0.0% City Manager: Salaries1,129,538 1,462,367 29.5% 1,352,222 ‐7.5% 1,406,311 4.0% 1,462,563 4.0% 1,521,066 4.0% 1,581,908 4.0%Project Salaries‐64,025 0.0% 26,730 ‐58.3% 27,799 4.0% 28,911 4.0% 30,068 4.0% 31,270 4.0%O&M166,165 273,301 64.5% 220,229 ‐19.4% 224,634 2.0% 229,126 2.0% 233,709 2.0% 238,383 2.0%ISF257,375 283,509 10.2% 316,504 11.6% 332,329 5.0% 348,946 5.0% 366,393 5.0% 384,713 5.0%1,553,078 2,083,202 34.1%1,915,685 ‐8.0%1,991,073 3.9%2,069,546 3.9%2,151,235 3.9%2,236,274 4.0%Economic Dev. Salaries609,328 593,742 ‐2.6% 822,766 38.6% 855,677 4.0% 889,904 4.0% 925,500 4.0% 962,520 4.0%Project Salaries9,211 19,523 112.0% 17,942 ‐8.1% 18,660 4.0% 19,406 4.0% 20,182 4.0% 20,990 4.0%O&M539,855 496,346 ‐8.1% 463,533 ‐6.6% 472,804 2.0% 482,260 2.0% 491,905 2.0% 501,743 2.0%ISF283,256 417,212 47.3% 462,630 10.9% 485,762 5.0% 510,050 5.0% 535,552 5.0% 562,330 5.0%1,441,650 1,526,823 5.9%1,766,871 15.7%1,832,901 3.7%1,901,619 3.7%1,973,139 3.8%2,047,582 3.8%Emerg Mgmt Salaries160,033 210,363 31.4% 239,258 13.7% 248,828 4.0% 258,781 4.0% 269,133 4.0% 279,898 4.0%Project Salaries‐‐0.0%‐0.0%‐0.0%‐ 0.0%‐0.0%‐0.0%O&M277,423 49,355 ‐82.2% 141,894 187.5% 144,732 2.0% 147,627 2.0% 150,579 2.0% 153,591 2.0%Capital Outlay10,000 0.0% 45,000 350.0% 50,000 11.1% 50,000 0.0%‐100.0%ISF48,722 134,877 176.8% 160,893 19.3% 168,938 5.0% 177,385 5.0% 186,254 5.0% 195,566 5.0%486,178 394,595 ‐18.8%552,045 39.9%607,498 10.0%633,793 4.3%655,966 3.5%629,055 ‐4.1% City Clerk: Salaries780,905 845,896 8.3% 880,838 4.1% 916,072 4.0% 952,714 4.0% 990,823 4.0% 1,030,456 4.0%Project Salaries4,343 8,400 93.4% 36,005 328.6% 37,445 4.0% 38,943 4.0% 40,501 4.0% 42,121 4.0%O&M197,359 278,102 40.9% 268,741 ‐3.4% 274,116 2.0% 279,598 2.0% 285,190 2.0% 290,894 2.0%ISF261,509 299,747 14.6% 353,251 17.8% 370,914 5.0% 389,459 5.0% 408,932 5.0% 429,379 5.0%1,244,116 1,432,145 15.1%1,538,835 7.4%1,598,546 3.9%1,660,715 3.9%1,725,446 3.9%1,792,849 3.9%City Attorney (Contract)426,146 450,000 5.6%472,500 5.0%481,950 2.0%491,589 2.0%501,421 2.0%511,449 2.0%‐ Finance Salaries1,813,907 2,139,299 17.9% 2,462,629 15.1% 2,561,134 4.0% 2,663,580 4.0% 2,770,123 4.0% 2,880,928 4.0%Project Salaries 43,288 40,165 ‐7.2%‐‐100.0%‐0.0%‐ 0.0%‐0.0%‐0.0%O&M150,071 271,079 80.6% 256,568 ‐5.4% 261,699 2.0% 266,933 2.0% 272,272 2.0% 277,717 2.0%ISF461,505 502,867 9.0% 563,342 12.0% 591,509 5.0% 621,085 5.0% 652,139 5.0% 684,746 5.0%2,468,771 2,953,410 19.6%3,282,539 11.1%3,414,343 4.0%3,551,597 4.0%3,694,534 4.0%3,843,391 4.0%GENERAL FUND - FIVE YEAR EXPENDITURE PROJECTIONSCity of TemeculaFiscal Year 2022‐23Annual Operating Budget57 20‐21 21‐22 % 22‐23 % 23‐24 % 24‐25 % 25‐26 % 26‐27 %Actuals Adjusted Change Proposed Change Projection Change Projection Change Projection Change Projection ChangeGENERAL FUND - FIVE YEAR EXPENDITURE PROJECTIONSCity of TemeculaFiscal Year 2022‐23Annual Operating BudgetHRSalaries561,756 736,944 31.2% 797,751 8.3% 829,661 4.0% 862,847 4.0% 897,361 4.0% 933,256 4.0%Project Salaries 57,233 750 ‐98.7%‐‐100.0%‐0.0%‐ 0.0%‐0.0%‐0.0%O&M135,339 370,995 174.1% 436,046 17.5% 444,767 2.0% 453,662 2.0% 462,736 2.0% 471,990 2.0%Capital Outlay86,000 0.0%ISF164,935 186,743 13.2% 226,188 21.1% 237,497 5.0% 249,372 5.0% 261,841 5.0% 274,933 5.0%919,263 1,381,432 50.3%1,459,985 5.7%1,511,925 3.6%1,565,882 3.6%1,621,938 3.6%1,680,179 3.6%Planning: Salaries1,418,078 1,697,297 19.7% 2,234,567 31.7% 2,323,950 4.0%2,416,908 4.0% 2,513,584 4.0% 2,614,127 4.0%Project Salaries 13,140 21,000 59.8% 21,300 1.4% 22,152 4.0% 23,038 4.0% 23,960 4.0% 24,918 4.0%O&M362,784 727,532 100.5% 702,637 ‐3.4% 716,690 2.0% 731,024 2.0% 745,644 2.0% 760,557 2.0%ISF475,032 569,488 19.9% 662,685 16.4% 695,819 5.0% 730,610 5.0% 767,141 5.0% 805,498 5.0%2,269,034 3,015,317 32.9%3,621,189 20.1%3,758,611 3.8%3,901,579 3.8%4,050,328 3.8%4,205,100 3.8%Code EnforcemenSalaries690,987 839,156 21.4% 782,385 ‐6.8% 813,680 4.0% 846,228 4.0% 880,077 4.0% 915,280 4.0%Project Salaries‐‐0.0%‐0.0%‐0.0%‐ 0.0%‐0.0%‐0.0%O&M110,571 146,373 32.4% 140,152 ‐4.3% 142,955 2.0% 145,814 2.0% 148,730 2.0% 151,705 2.0%Capital Outlay80,000 0.0% 81,600 2.0% 83,232 2.0% 84,897 2.0% 86,595 2.0%ISF159,380 176,070 10.5% 211,271 20.0% 238,635 13.0% 250,566 5.0% 263,095 5.0% 276,249 5.0%960,939 1,161,599 20.9%1,213,808 4.5%1,276,870 5.2%1,325,840 3.8%1,376,798 3.8%1,429,829 3.9%Building & Safety Salaries1,573,043 1,870,854 18.9% 2,299,038 22.9% 2,391,000 4.0% 2,486,640 4.0% 2,586,105 4.0% 2,689,549 4.0%Project Salaries‐‐0.0%‐0.0%‐0.0%‐ 0.0%‐0.0%‐0.0%O&M259,205 458,642 76.9% 426,359 ‐7.0% 434,886 2.0% 443,584 2.0% 452,456 2.0% 461,505 2.0%Capital Outlay40,000 0.0% 40,800 2.0% 41,616 2.0% 42,448 2.0% 43,297 2.0%ISF322,955 368,612 14.1% 462,458 25.5% 485,581 5.0% 509,860 5.0% 535,353 5.0% 562,121 5.0%2,155,203 2,698,108 25.2%3,227,855 19.6%3,352,267 3.9%3,481,699 3.9%3,616,362 3.9%3,756,472 3.9% Land Developme Salaries1,156,825 1,428,015 23.4% 1,534,689 7.5% 1,596,077 4.0% 1,659,920 4.0% 1,726,316 4.0% 1,795,369 4.0%Project Salaries7,861 11,312 43.9% 32,348 186.0% 33,642 4.0% 34,988 4.0% 36,387 4.0% 37,843 4.0%O&M126,450 303,162 139.7% 236,650 ‐21.9% 241,383 2.0% 246,211 2.0% 251,135 2.0% 256,158 2.0%ISF308,839 331,877 7.5% 382,026 15.1% 401,127 5.0% 421,184 5.0% 442,243 5.0% 464,355 5.0%1,599,976 2,074,366 29.6%2,185,713 5.4%2,272,229 4.0%2,362,302 4.0%2,456,081 4.0%2,553,724 4.0% Public Works: Salaries2,318,498 2,613,591 12.7% 2,951,787 12.9% 3,173,858 7.5% 3,404,813 7.3% 3,645,005 7.1%3,894,806 6.9%Project Salaries 26,551 48,986 84.5% 64,391 31.4% 66,967 4.0% 69,645 4.0% 72,431 4.0% 75,328 4.0%O&M1,948,013 2,742,850 40.8% 3,030,631 10.5% 3,091,244 2.0% 3,153,068 2.0% 3,216,130 2.0% 3,280,452 2.0%Capital Outlay‐590,000 0.0% 250,000 ‐57.6% 250,000 0.0% 250,000 0.0% 250,000 0.0% 250,000 0.0%ISF776,094 893,690 15.2% 986,668 10.4% 1,054,324 6.9% 1,107,040 5.0% 1,162,392 5.0% 1,220,512 5.0%5,069,156 6,889,118 35.9%7,283,477 5.7%7,636,393 4.8%7,984,567 4.6%8,345,958 4.5%8,721,098 4.5%58 20‐21 21‐22 % 22‐23 % 23‐24 % 24‐25 % 25‐26 % 26‐27 %Actuals Adjusted Change Proposed Change Projection Change Projection Change Projection Change Projection ChangeGENERAL FUND - FIVE YEAR EXPENDITURE PROJECTIONSCity of TemeculaFiscal Year 2022‐23Annual Operating Budget CIP Admin: Salaries 2,122,645 2,359,596 11.2% 2,799,383 18.6% 2,911,358 4.0% 3,027,813 4.0% 3,148,925 4.0% 3,274,882 4.0%Project Salaries‐‐0.0%‐0.0%‐0.0%‐ 0.0%‐0.0%‐0.0%O&M30,337 82,529 172.0% 86,275 4.5% 88,001 2.0% 89,761 2.0% 91,556 2.0% 93,387 2.0%ISF253,623 328,485 29.5% 390,621 18.9% 410,152 5.0% 430,660 5.0% 452,193 5.0% 474,802 5.0%2,406,605 2,770,609 15.1%3,276,279 18.3%3,409,511 4.1%3,548,233 4.1%3,692,674 4.1%3,843,071 4.1% Parks Maint Salaries811,001 852,057 5.1% 1,329,364 56.0% 1,382,539 4.0%1,437,840 4.0% 1,495,354 4.0% 1,555,168 4.0%Project Salaries 40,845 52,634 28.9% 58,671 11.5% 61,018 4.0% 63,459 4.0% 65,997 4.0% 68,637 4.0%O&M2,844,270 3,372,184 18.6% 3,537,980 4.9% 3,608,740 2.0% 3,680,914 2.0% 3,754,533 2.0% 3,829,623 2.0%Capital Outlay‐9,681 0.0% 120,000 1139.5%‐100.0%0.0%0.0%0.0%ISF196,370 198,373 1.0% 245,796 23.9% 258,086 5.0% 270,990 5.0% 284,540 5.0% 298,767 5.0%3,892,486 4,484,929 15.2%5,291,811 18.0%5,310,382 0.4%5,453,203 2.7%5,600,423 2.7%5,752,195 2.7% Police: Salaries27,504 32,189 17.0% 35,771 11.1% 37,202 4.0% 38,690 4.0% 40,238 4.0% 41,847 4.0%Project Salaries 51,927 98,493 89.7% 143,906 46.1% 149,662 4.0% 155,648 4.0% 161,874 4.0% 168,349 4.0%Contract32,983,743 35,047,844 6.3% 38,473,922 9.8% 40,314,067 4.8% 42,329,770 5.0% 44,446,259 5.0% 46,668,571 5.0%O&M‐contract 660,234 669,009 1.3% 688,766 3.0% 709,172 3.0% 730,249 3.0% 752,021 3.0% 774,512 3.0%Capital Outlay70,725 282,923 300.0% 64,000 ‐77.4% 80,000 25.0% 80,000 0.0% 80,000 0.0% 80,000 0.0%ISF509,746 635,586 24.7% 710,995 11.9% 787,495 10.8% 826,869 5.0% 868,213 5.0% 911,624 5.0%O&M529,652 949,272 79.2% 944,611 ‐0.5% 963,503 2.0% 982,773 2.0% 1,002,429 2.0% 1,022,477 2.0%34,833,531 37,715,317 8.3%41,061,970 8.9%43,041,100 4.8%45,144,000 4.9%47,351,033 4.9%49,667,380 4.9% FireGrants3,500 42,952 1127.4%‐‐100.0%‐ 0.0%‐ 0.0%‐0.0%‐0.0%Salaries480,476 531,897 10.7% 574,185 8.0% 597,152 4.0% 621,038 4.0% 645,880 4.0% 671,715 4.0%Project Salaries‐18,310 0.0% 18,676 2.0% 19,423 4.0% 20,200 4.0% 21,008 4.0% 21,848 4.0%Contract Fire Suppression 5,143,420 6,527,565 26.9% 8,164,668 25.1% 9,278,381 13.6% 10,207,737 10.0% 11,528,983 12.9% 12,963,916 12.4%Contract Fire Prevention 811,672 923,701 13.8% 951,412 3.0% 1,027,525 8.0%939,354 ‐8.6% 1,014,503 8.0% 1,095,663 8.0%O&M 589,312 804,398 36.5% 781,626 ‐2.8% 797,259 2.0% 813,204 2.0% 829,468 2.0% 846,057 2.0%ISF 437,161 664,209 51.9% 732,015 10.2% 768,616 5.0% 807,047 5.0% 847,399 5.0% 889,769 5.0%7,465,541 9,513,031 27.4%11,222,582 18.0%12,488,355 11.3%13,408,580 7.4%14,887,241 11.0%16,488,968 10.8% Animal Control344,412 375,518 9.0% 326,028 ‐13.2% 329,288 1.0% 332,581 1.0% 335,907 1.0% 339,266 1.0% Animal Control ‐ Debt Service107,452 125,440 16.7% 126,000 0.4% 127,260 1.0% 128,533 1.0% 129,818 1.0% 131,116 1.0%451,864 500,958 10.9% 452,028 ‐9.8% 456,548 1.0% 461,114 1.0% 465,725 1.0% 470,382 1.0% Non‐Departmental:Retiree Medical Contribution 1,000,000 1,000,000 0.0% 1,000,000 0.0% 1,000,000 0.0% 1,000,000 0.0% 1,000,000 0.0% 1,000,000 0.0%PERs Replacement Benefit 108,524 101,423 ‐6.5% 103,451 2.0% 105,520 2.0% 107,631 2.0% 109,784 2.0% 111,979 2.0%Capital Project O&M Costs‐‐0.0%0.0% 409,213 0.0% 409,700 0.1% 409,700 0.0% 409,700 0.0%Staffing Continuity Reserve‐200,000 0.0% 200,000 0.0% 200,000 0.0% 200,000 0.0% 200,000 0.0% 200,000 0.0%Prop. Tax Admin94,172 89,857 ‐4.6% 91,654 2.0% 95,320 4.0% 99,133 4.0% 103,098 4.0% 107,222 4.0%1,202,696 1,391,280 15.7%1,395,106 0.3%1,810,054 29.7%1,816,464 0.4%1,822,582 0.3%1,828,901 0.3%Total General Fund Expenditures71,430,176 83,124,494 16.4%91,960,495 10.6%97,013,714 5.5%101,549,383 4.7%106,800,851 5.2%112,295,825 5.1%59 20‐21 21‐22 % 22‐23 % 23‐24 % 24‐25 % 25‐26 % 26‐27 %Actuals Adjusted Change Proposed Change Projection Change Projection Change Projection Change Projection ChangeGENERAL FUND - FIVE YEAR EXPENDITURE PROJECTIONSCity of TemeculaFiscal Year 2022‐23Annual Operating BudgetSummary by CategorySalaries/Benefits 15,769,380 18,349,793 16.4% 21,244,909 15.8% 22,198,705 4.5% 23,190,654 4.5% 24,222,280 4.4% 25,295,171 4.4%Project Salaries 254,399 383,598 50.8% 419,969 9.5% 436,767 4.0% 454,238 4.0% 472,407 4.0% 491,304 4.0%O&M 9,377,739 12,610,077 34.5% 12,934,686 2.6% 13,186,359 1.9% 13,443,021 1.9% 13,704,770 1.9% 13,971,708 1.9%ISF 5,152,670 6,210,069 20.5% 7,123,059 14.7% 7,555,284 6.1% 7,933,049 5.0% 8,329,701 5.0% 8,746,186 5.0%Capital Outlay 70,725 882,604 1147.9% 564,000 ‐36.1% 80,000 ‐85.8% 80,000 0.0% 80,000 0.0% 80,000 0.0%Fire Contract Preve5,955,092 7,451,266 25.1% 9,116,080 22.3% 10,305,906 13.1% 11,147,091 8.2% 12,543,486 12.5% 14,059,579 12.1%Police Contract 33,643,976 35,716,854 6.2% 39,162,688 9.6% 41,023,238 4.8% 43,060,019 5.0% 45,198,279 5.0% 47,443,083 5.0%Grants 3,500 42,952 1127.4%‐ ‐100.0%‐ 0.0%‐ 0.0%‐ 0.0%‐ 0.0%Non‐Departmenta 1,202,696 1,391,280 15.7% 1,395,106 0.3% 1,810,054 29.7% 1,816,464 0.4% 1,822,582 0.3% 1,828,901 0.3%71,430,176 83,038,494 16.3% 91,960,495 10.7% 96,596,314 5.0% 101,124,535 4.7% 106,373,506 5.2% 111,915,933 5.2%60 2020‐21 Actuals 2021‐22 Adjusted2022‐23 Proposed2023‐24 Projection2024‐25 Projection2025‐26 Projection2026‐27 ProjectionRevenueEstimated Annual Growth Rate4.0% 2.0% 0.0% 2.0% 2.0%Sales Tax33,484,758 36,163,539 37,610,081 38,362,282 38,362,282 39,129,528 39,912,118 Operating Transfer In (from CIP)‐ ‐ Investment Interest40,650 69,000 70,380 71,788 71,788 73,223 74,688 Total Revenue33,525,409 36,232,539 37,680,461 38,434,070 38,434,070 39,202,751 39,986,806 % Growth over Prior Year 18.4% 4.0% 2.0% 0.0% 2.0% 2.0%Transfers Out ‐ Operating ExpendituresPublic SafetyPolice Staffing 3,922,242 4,108,549 4,135,320 4,342,086 4,559,191 4,787,150 5,026,508 Fire Staffing (Station 95)1,771,252 1,904,408 1,990,964 2,147,141 2,315,718 2,497,685 2,694,112 Public Safety Subsidy‐ ‐ 3,000,000 5,000,000 Fire ‐ ISF (4 Inspect. Vehicles & Ladder Truck)170,390 170,390 170,390 170,390 170,390 170,390 170,390 IT ‐ Citywide Surveillance Cameras O&M 260,000 300,000 300,000 300,000 300,000 300,000 300,000 Asset Management‐ Reserve Fund Contribution ‐ Fleet Replacement Fund (310)500,000 500,000 500,000 500,000 500,000 500,000 500,000 Reserve Fund Contribution ‐ Tech. Replacement Fund (325)500,000 500,000 500,000 500,000 500,000 500,000 500,000 Reserve Fund Contribution ‐ Street Maintenance Fund (103)2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Reserve Fund Contribution ‐ Facilities Replacement Fund (350)500,000 660,000 660,000 1,000,000 1,000,000 1,000,000 1,000,000 General Services‐ TCSD Operations (subsidy)7,897,243 10,002,131 11,784,280 13,709,726 14,300,383 14,910,694 15,542,047 Library (subsidy)847,181 947,149 975,563 1,004,830 1,034,975 1,066,025 1,098,005 Service Level B‐Residential Streetlights (subsidy)73,168 ‐ ‐‐‐‐ ‐ Public Works ‐ Enhanced Custodial Svcs80,896 83,323 85,822 88,397 91,049 93,780 96,594 Total Operating Expenditures 18,522,372 21,175,950 23,102,340 25,762,570 26,771,706 30,825,724 33,927,656 % Growth over Prior Year17.4%9.1% 11.5% 3.9% 15.1%Excess of Revenues Over/(Under) Operating Expenditures15,003,037 15,056,589 14,578,121 12,671,500 11,662,364 8,377,027 6,059,150 Amount Available for CIP30,324,429 15,056,589 37,484,040 23,692,815 28,226,397 33,669,425 37,636,575 MEASURE S FUND - FIVE YEAR FINANCIAL PROJECTION City of TemeculaFiscal Year 2022‐23 Annual Operating Budget61 2020‐21 Actuals 2021‐22 Adjusted2022‐23 Proposed2023‐24 Projection2024‐25 Projection2025‐26 Projection2026‐27 ProjectionMEASURE S FUND - FIVE YEAR FINANCIAL PROJECTION City of TemeculaFiscal Year 2022‐23 Annual Operating BudgetTransfers Out ‐ Capital Improvement ProgramNEWAuto Mall Wayfinding Signs‐ 200,000 761Bike Lane and Trail Program ‐ Infill Mini Pump Track95,000 300,000 NEWBike Land and Trail Program ‐ Ronald Reagan Sports Park Trails‐ 350,000 720Bike Lane and Trail Program ‐ Temecula Creek South Side Trail100,000 564,240 90,634 524Cherry Street Extension and Murrieta Creek Low‐Flow Crossing to Diaz Road450,000 169,300 130,000 779City Facility Security Improvements50,000 150,000 722Citywide Drainage Master Plan(20,000) 720,000 5,000 724Citywide Financial System Upgrade113,184 688Citywide Streetlight Acquisition LED Conversion460,000 ‐ 711Citywide Surveillance Cameras550,000 600,000 730Community Recreation Center Renovation75,000 15,377 3,893,391 527,664 205Community Recreation Center (CRC) Splashpad and Shade Structures75,000 1,000,000 521Diaz Road Expansion (Rancho Cal to Cherry St)8,522 1,328,555 207Dog Park Renovation182,874 145Eagle Soar Splash Pad Control System Renovation30,000 ‐ NEWFiber Optic Cable and Conduits ‐ Traffic Signals1,200,000 550Fiber Optic Communication System Upgrades280,000 697Fire Station 73 ‐ Gym/Garage 200,000 256,910 23,470 1,334,117 687Fire Station 84 Renovations974,278 670Flashing Beacons and Speed Advisory Signs100,000 32,000 32,000 32,000 127Flood Control Channel Reconstruction and Repair745,610 200,000 726French Valley Parkway / I‐15 Over‐Crossing and Interchange Improvements‐Phase II4,807,585 300,000 300,000 170,000 728French Valley Parkway / I‐15 Over‐Crossing and Interchange Improvements‐Phase III‐ 227,000 203History Museum‐ 454,000 62 2020‐21 Actuals 2021‐22 Adjusted2022‐23 Proposed2023‐24 Projection2024‐25 Projection2025‐26 Projection2026‐27 ProjectionMEASURE S FUND - FIVE YEAR FINANCIAL PROJECTION City of TemeculaFiscal Year 2022‐23 Annual Operating Budget690Interstate 15 Branding and Visioning‐ Conceptual Landscape Corridor Plan287,133 330,000 755Local Roadway Safety Plan18,000 ‐ 692Margarita Recreation Center250,000 2,057,735 1,765,000 771Mary Phillips Senior Center Emergency Generator20,000 782Mary Phillips Senior Center Enhancement and Renovation30,000 ‐ 228,425 704Medians & Traffic Calmining Improvements ‐ Citywide160,000 270,000 250,000 648Murrieta Creek Bridge at Overland1,000,000 221Murrieta Creek Regional Sports Park‐ 1,500,000 785Nicolas Road Multi‐Use Trail Extension150,000 780Old Town Surveillance and Sound System Upgrade500,000 160,000 603Overhead Street Name Sign Replacement Program‐Citywide225,000 155Park Restrooms Expansion, Renovations and ADA Improvements872,000 1,025,000 1,025,000 130Parks Improvement Program125,000 356,000 350,000 350,000 350,000 350,000 350,000 518Pedestrian Signal Equipment Upgrade ‐ Citywide30,000 30,000 787Pickleball Courts750,000 120Playground Equipment Enhancement and Safety Surfacing1,150,000 777,649 500,000 500,000 500,000 500,000 500,000 NEWRancho California Road Medians‐ 150,000 206RCWD Recycled Water Accelerated Retrofit Program15,000 40,000 146Ronald H. Roberts Temecula Public Library Enhancement Project14,217 ‐ 114Ronald Reagan Sports Park Restroom Expansion and Renovation100,000 647,199 224RRSP Pump Track Sade Structure75,000 223RRSP Hockey Rink750,000 450,000 222RRSP Skate Park1,000,000 220Sam Hicks Monument Park Perimeter Fencing201,000 65,000 739Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension and Interconnect1,842,709 63 2020‐21 Actuals 2021‐22 Adjusted2022‐23 Proposed2023‐24 Projection2024‐25 Projection2025‐26 Projection2026‐27 ProjectionMEASURE S FUND - FIVE YEAR FINANCIAL PROJECTION City of TemeculaFiscal Year 2022‐23 Annual Operating Budget732Santa Gertrudis Creek Phase II ‐ Margarita Under‐Crossing346,117 974,085 314,000 708Sidewalks ‐Citywide 400,000 563,596 500,000 500,000 500,000 500,000 500,000 696Sidewalks ‐Old Town Boardwalk Enhancement‐ 766Sidewalks ‐Old Town Improvement Project125,000 300,000 141Sports Court Resurfacing50,000 70,257 50,000 50,000 50,000 50,000 50,000 113Sports Field Lighting LED Conversion100,000 300,000 400,000 400,000 400,000 400,000 NEWThe MERC Kitchen Upgrade‐ 604,000 680Traffic Signal Equipment Enhancement Program ‐ Citywide100,000 1,350,000 150,000 260,000 260,000 260,000 260,000 788Traffic Signal ‐ Promenade Mall Ring Road300,000 149,554 682Traffic Signal Installation – Citywide100,000 495,000 150,000 165,000 605Traffic Signal Park and Ride Access Improvements1,008,666 NEWUtility Undergrounding ‐ Maint Street and Vicinity‐ 658,060 ‐ Total CIP Project Expenditures5,233,125 28,886,909 14,942,089 7,128,781 2,934,000 2,092,000 1,825,000 ‐ ‐ ‐ ‐ Total Expenditures/Transfers Out23,755,497 50,062,859 38,044,429 32,891,351 29,705,706 32,917,724 35,752,656 Excess of Revenues Over/(Under) Total Expenditures9,769,912 (13,830,320) (363,968) 5,542,719 8,728,364 6,285,027 4,234,150 Fund Balance, Beginning of Year15,445,691 25,215,603 11,385,283 11,021,315 16,564,034 25,292,397 31,577,425 Fund Balance, End of Year25,215,603 11,385,283 11,021,315 16,564,034 25,292,397 31,577,425 35,811,575 4,128,781 (66,000) (908,000) 64 Adjusted % Proposed % Projected % Projected % Projected % Projected %Actual Budget Change Budget Change Budget Change Budget Change Budget Change Budget ChangeTCSD Program Revenues758,101 1,902,405 150.9% 1,946,048 2.3% 1,965,508 1.0% 1,985,164 1.0% 2,005,015 1.0% 2,025,065 1.0%Measure C Revenues1,880,264 1,872,625 ‐0.4% 1,891,351 1.0% 1,910,265 1.0% 1,929,367 1.0% 1,948,661 1.0% 1,968,148 1.0%CRP Funding Contribution1,000,000 Measure S Contribution7,897,243 10,002,131 26.7% 11,784,280 17.8% 13,709,726 16.3% 14,300,383 4.3% 14,910,694 4.3% 15,542,047 4.2% Total Revenues10,535,608 13,777,161 30.8% 16,621,679 20.6% 17,585,499 5.8% 18,214,914 3.6% 18,864,370 3.6% 19,535,260 3.6%Expenditures by DivisionTCSD Operations3,124,677 3,497,145 11.9% 4,397,030 25.7% 4,908,668 11.6% 5,122,459 4.4% 5,345,886 4.4% 5,579,392 4.4%Senior Center Maintenance115,572 125,699 8.8% 136,401 8.5% 140,363 2.9% 144,454 2.9% 148,678 2.9% 153,040 2.9%Senior Center Operations251,967 527,119 109.2% 634,310 20.3% 657,834 3.7% 682,261 3.7% 707,628 3.7% 733,971 3.7%Community Rec Center Maintenance 308,424 374,060 21.3% 467,406 25.0% 476,363 1.9% 490,517 3.0% 505,138 3.0% 520,244 3.0%Community Rec Center Operations533,331 796,947 49.4% 1,036,229 30.0% 1,074,425 3.7% 1,114,084 3.7% 1,155,263 3.7% 1,198,022 3.7%Recreation686,132 1,506,639 119.6% 1,510,602 0.3% 1,553,560 2.8% 1,597,887 2.9% 1,643,631 2.9% 1,690,842 2.9%TCC Maintenance105,977 108,227 2.1% 116,790 7.9% 120,127 2.9% 123,570 2.9% 127,124 2.9% 130,792 2.9%TCC Operations264,356 315,855 19.5% 321,314 1.7% 334,004 3.9% 347,198 4.0% 360,917 4.0% 375,182 4.0%Museum Maintenance101,907 99,685 ‐2.2% 107,301 7.6% 110,422 2.9% 113,645 2.9% 116,972 2.9% 120,409 2.9%Museum Operations305,159 507,805 66.4% 796,846 56.9% 825,858 3.6% 855,972 3.6% 887,233 3.7% 919,685 3.7%Aquatics Maintenance272,573 316,224 16.0% 325,853 3.0% 334,338 2.6% 343,071 2.6% 352,061 2.6% 361,315 2.6%Aquatics Operations871,506 1,009,486 15.8% 1,120,737 11.0% 1,163,662 3.8% 1,208,266 3.8% 1,254,616 3.8% 1,302,780 3.8%Sports197,927 455,444 130.1% 752,283 65.2% 676,642 ‐10.1% 701,940 3.7% 728,215 3.7% 755,505 3.7%Children's Museum Maintenace53,555 78,833 47.2% 76,680 ‐2.7% 78,679 2.6% 80,737 2.6% 82,856 2.6% 85,037 2.6%Community Theater Maintenance189,961 241,393 27.1% 245,053 1.5% 246,769 0.7% 253,424 2.7% 260,281 2.7% 267,347 2.7%Community Theater Operations817,697 1,290,741 57.9% 1,430,363 10.8% 1,480,675 3.5% 1,532,861 3.5% 1,586,994 3.5% 1,643,148 3.5%Cultural Arts Program174,911 283,268 62.0%‐ ‐100.0%‐ ‐ ‐ ‐ Human Services187,948 222,163 18.2%‐ ‐100.0%‐ ‐ ‐ ‐ MRC Facility Maintenance49,133 87,988 79.1% 54,626 ‐37.9% 97,361 78.2% 100,184 2.9% 103,099 2.9% 106,109 2.9%MRC Facility Operations93,406 131,405 40.7% 63,201 ‐51.9% 852,844 1249.4% 879,730 3.2% 903,157 2.7% 923,551 2.3%Jefferson Recreation Center Maint.38,364 75,391 96.5% 78,667 4.3% 81,146 3.2% 83,711 3.2% 86,366 3.2% 89,112 3.2%Contract Classes256,806 663,632 158.4% 958,495 44.4% 881,465 ‐8.0% 905,126 2.7% 929,501 2.7% 954,615 2.7%FY26‐27TEMECULA COMMUNITY SERVICES DISTRICT - FIVE YEAR FINANCIAL PROJECTIONFY25‐26FY24‐25FY23‐24FY22‐23FY21‐22FY20‐21City of TemeculaFiscal Year 2022‐23Annual Operating Budget65 Adjusted % Proposed % Projected % Projected % Projected % Projected %Actual Budget Change Budget Change Budget Change Budget Change Budget Change Budget ChangeFY26‐27TEMECULA COMMUNITY SERVICES DISTRICT - FIVE YEAR FINANCIAL PROJECTIONFY25‐26FY24‐25FY23‐24FY22‐23FY21‐22FY20‐21City of TemeculaFiscal Year 2022‐23Annual Operating BudgetPark Rangers 516,689 550,328 6.5%‐ ‐100.0%‐ ‐ ‐ ‐ Responsible Compassion Maint.143,357 284,201 98.2% 760,529 167.6% 265,847 ‐65.0% 271,275 2.0% 276,816 2.0% 282,473 2.0%Responsible Compassion481,074 910,973 89.4% 867,279 ‐4.8% 892,545 2.9% 918,632 2.9% 945,571 2.9% 973,391 2.9%Workforce Development‐‐ 0.0% 319,138 0.0% 331,904 4.0% 343,908 3.6% 356,366 3.6% 369,297 3.6%Total Expenditures10,142,407 14,460,651 42.6% 16,577,133 14.6% 17,585,499 6.1% 18,214,914 3.6% 18,864,370 3.6% 19,535,260 3.6%Excess of Revenues Over Expenditures393,201 (683,490) 44,546 ‐ ‐ ‐ ‐ Beginning Fund Balance845,743 1,238,944 555,454 600,000 600,000 600,000 600,000 Ending Fund Balance1,238,944 555,454 600,000 600,000 600,000 600,000 600,000 66 Beginning Balance 2021-22 Revenues/ Transfers In 2021-22 Expenditures/ Transfers Out 2021-22 Revenues/ Transfers In 2022-23 Expenditures/ Transfers Out 2022-23 45,243,938 100,199,630 97,204,916 103,455,802 103,160,137 25,215,603 36,232,539 50,062,859 37,680,461 38,044,428 -1,500,000 -1,500,000 - 7,040,000 4,020,395 7,040,000 8,559,605 70,459,541 144,972,169 151,288,170 149,676,263 149,764,170 101,877 2,945,795 3,047,672 3,282,718 3,282,718 1,585,330 2,350,019 3,790,721 2,584,827 2,269,086 3,461,494 2,010,800 -2,010,800 - ---200,000 - 895,391 695,480 500,857 105,000 - 7,039,754 7,039,754 7,039,754 7,039,754 3,564,979 6,104,613 5,681,330 13,564,460 9,557,980 623,661 223,507 265,000 203,300 135,000 (282,957)3,117,686 2,436,719 1,205,894 571,228 839,738 1,500 600,000 -98,929 172,301 147,230 238,038 150,489 226,955 86,621 279,850 279,850 280,665 367,286 27,207 200 27,407 -- 12,054,618 11,893,143 12,066,262 821,000 1,110,929 9,430,636 4,221,220 10,188,519 3,280,500 5,458,499 91,099 64,688 -18,350 30,000 32,651,995 41,095,484 46,162,128 34,747,757 30,148,364 -1,962,107 1,962,107 1,603,835 1,603,835 -555,808 555,808 555,807 555,807 -2,517,915 2,517,915 2,159,642 2,159,642 1,238,945 13,777,161 14,460,653 16,621,680 16,577,134 -815,413 -400,000 - 761,638 642,145 1,134,782 642,145 502,030 186,788 8,676,354 8,817,762 9,606,050 9,536,466 30,688 -10,000 5,532 10,532 409,961 256,047 314,697 258,541 301,575 531,981 980,688 1,079,177 1,009,102 1,118,108 14,333 37,938 41,820 37,953 37,619 111,673 43,257 38,750 42,599 59,360 46,464 47,548 45,208 47,357 50,859 4,727 6,412 7,151 6,398 6,503 31,202 39,155 51,946 39,039 38,053 36,900 27,500 25,520 28,642 30,755 9,992 15,334 19,137 15,312 15,179 109,757 137,555 134,379 137,070 150,492 31,064 5,316 5,188 5,122 14,115 14,882 9,824 10,405 9,751 12,052 3,923 2,470 3,371 2,451 2,379 116,858 97,061 137,060 96,437 112,167 30,775 34,364 33,203 34,227 38,151 12,311 14,824 16,300 14,779 16,247 12,013 9,860 11,705 9,802 11,038 66,211 38,170 57,604 37,859 53,417 2,293 2,126 2,113 2,117 2,089 GENERAL FUNDS 001: GENERAL FUND 48,238,652 48,534,317 City of Temecula Fiscal Year 2022-2023 Annual Operating Budget FUND BALANCE SUMMARY - ALL FUNDS Beginning Balance 2022-23 Ending Balance 2022-23 110: COVID-19 PANDEMIC COMMUNITY REINVESTMENT PROGRAM 3,019,605 1,500,000 TOTAL GENERAL FUNDS 64,143,540 64,055,633 002: MEASURE S FUND 11,385,283 11,021,316 006: FIRE FACILITY ACQUISITION FUND 1,500,000 3,000,000 102: ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA) FUND 144,628 460,369 103: STREET MAINTENANCE FUND 5,472,294 7,483,094 SPECIAL REVENUE FUNDS 100: GAS TAX FUND -- 108: ARPA -- 120: DEVELOPMENT IMPACT FEES FUND 3,988,262 7,994,742 105: NPDES IN LIEU FEES FUND -200,000 106: UPTOWN TEMECULA NEW STREETS IN-LIEU FEES 1,090,014 1,195,014 145: TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND 241,238 142,309 150: AB 2766 MOTOR VEHICLE SUBVENTION FUND 81,493 5,027 125: PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 582,168 650,468 140: COMMUNITY DEV BLOCK GRANT FUND 398,010 1,032,675 165: AFFORDABLE HOUSING FUND 11,881,499 11,591,570 170: MEASURE A FUND 3,463,337 1,285,338 160: SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND 86,621 - 161: TEMECULA MAJOR CRIMES REWARD FUND -- DEBT SERVICE FUNDS 395: 2018 FINANCING LEASE (CIVIC CENTER) FUND (0)(0) 198: PUBLIC ART FUND 155,787 144,137 TOTAL SPECIAL REVENUE FUNDS 27,585,351 32,184,744 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) 190: TEMECULA COMMUNITY SERVICES DISTRICT FUND 555,453 600,000 396: 2018 FINANCING LEASE (MRC) FUND (0)(0) TOTAL DEBT SERVICE FUNDS (0)(0) 194: TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 45,380 114,964 195: TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 20,688 15,688 191: TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 815,413 1,215,413 192: TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 269,001 409,115 501: SERVICE LEVEL"C"ZONE 1 SADDLEWOOD FUND 10,451 10,785 502: SERVICE LEVEL"C"ZONE 2 WINCHESTER CREEK FUND 116,180 99,419 196: TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 351,311 308,276 197: TEMECULA LIBRARY FUND 433,492 324,486 505: SERVICE LEVEL"C"ZONE 5 SIGNET SERIES FUND 18,411 19,397 506: SERVICE LEVEL"C"ZONE 6 WOODCREST COUNTRY FUND 38,880 36,767 503: SERVICE LEVEL"C"ZONE 3 RANCHO HIGHLANDS FUND 48,804 45,302 504: SERVICE LEVEL"C"ZONE 4 THE VINEYARDS FUND 3,988 3,883 509: SERVICE LEVEL"C"ZONE 9 RANCHO SOLANA FUND 31,192 22,199 510: SERVICE LEVEL"C"ZONE 10 MARTINIQUE FUND 14,301 12,001 507: SERVICE LEVEL"C"ZONE 7 RIDGEVIEW FUND 6,189 6,323 508: SERVICE LEVEL"C"ZONE 8 VILLAGE GROVE FUND 112,933 99,510 513: SERVICE LEVEL"C"ZONE 13 PRESLEY DEVELOP FUND 31,936 28,012 514: SERVICE LEVEL"C"ZONE 14 MORRISON HOMES FUND 10,835 9,367 511: SERVICE LEVEL"C"ZONE 11 MEADOWVIEW FUND 3,022 3,095 512: SERVICE LEVEL"C"ZONE 12 VINTAGE HILLS FUND 76,859 61,129 517: SERVICE LEVEL"C"ZONE 17 MONTE VISTA FUND 2,306 2,335 515: SERVICE LEVEL"C"ZONE 15 BARCLAY ESTATES FUND 10,168 8,932 516: SERVICE LEVEL"C"ZONE 16 TRADEWINDS FUND 46,777 31,219 67 Beginning Balance 2021-22 Revenues/ Transfers In 2021-22 Expenditures/ Transfers Out 2021-22 Revenues/ Transfers In 2022-23 Expenditures/ Transfers Out 2022-23 City of Temecula Fiscal Year 2022-2023 Annual Operating Budget FUND BALANCE SUMMARY - ALL FUNDS Beginning Balance 2022-23 Ending Balance 2022-23 62,293 94,234 124,089 94,040 89,427 87,754 55,050 56,691 54,512 78,099 232,805 179,335 205,218 178,135 191,192 195,719 229,451 248,587 228,333 228,245 10,707 4,472 5,625 4,409 5,955 23,667 8,545 7,250 8,412 16,468 55,446 162,220 175,675 162,242 161,541 69,972 44,420 43,041 44,042 56,995 1,921 2,167 2,038 2,160 2,110 9,261 9,143 7,897 9,102 11,120 336,098 235,344 535,591 233,236 230,551 5,195 4,270 4,427 4,466 3,978 36,330 268 -268 - 4,942,547 26,745,441 27,874,056 30,133,322 29,772,002 (33,782,877)6,158,644 5,903,653 5,902,494 5,899,866 (33,782,877)6,158,644 5,903,653 5,902,494 5,899,866 828,918 1,182,210 1,297,275 1,525,457 1,517,257 2,038,333 16,700 370,252 454,418 470,770 4,273,712 944,065 249,593 976,545 670,500 1,305,662 5,194,236 5,392,375 5,920,025 5,910,265 2,060,546 680,401 763,534 668,300 160,000 4,024 389,713 389,608 380,068 379,963 404,324 37,024 40,000 27,600 25,000 588,587 1,443,898 1,444,335 1,652,395 1,651,435 382,769 739,409 1,119,114 739,409 500,000 11,886,875 10,627,656 11,066,084 12,344,217 11,285,190 14,101,019 221,801,465 221,801,464 56,712,405 56,712,405 14,101,020 221,801,465 221,801,464 56,712,405 56,712,405 100,259,101 453,918,774 466,613,470 291,676,100 285,741,639 518: SERVICE LEVEL"C"ZONE 18 TEMEKU HILLS FUND 32,438 37,052 521: SERVICE LEVEL"C"ZONE 21 VAIL RANCH FUND 176,583 176,671 522: SERVICE LEVEL"C"ZONE 22 SUTTON PLACE FUND 9,554 8,009 519: SERVICE LEVEL"C"ZONE 19 CHANTEMAR FUND 86,113 62,525 520: SERVICE LEVEL"C"ZONE 20 CROWNE HILL FUND 206,922 193,865 525: SERVICE LEVEL"C"ZONE 25 SERENA HILLS FUND 71,351 58,398 526: SERVICE LEVEL"C"ZONE 26 GALLERY TRADITION FUND 2,050 2,099 523: SERVICE LEVEL"C"ZONE 23 PHEASENT RUN 24,962 16,906 524: SERVICE LEVEL"C"ZONE 24 HARVESTON FUND 41,991 42,692 529: SERVICE LEVEL"C"ZONE 29 GALLERY PORTRAIT FUND 5,038 5,526 530: SERVICE LEVEL"C"ZONE 30 FUTURE ZONES FUND 36,598 36,866 527: SERVICE LEVEL"C"ZONE 27 AVONDALE FUND 10,507 8,489 528: SERVICE LEVEL"C"ZONE 28 WOLF CREEK FUND 35,851 38,536 380: SARDA DEBT SERVICE FUND (33,527,886)(33,525,258) TOTAL TEMECULA COMMUNITY SERVICES DISTRICT 3,813,932 4,175,252 SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY (SARDA) 300: INSURANCE FUND 713,853 722,053 305: WORKERS' COMPENSATION FUND 1,684,781 1,668,429 TOTAL SARDA (33,527,886)(33,525,258) INTERNAL SERVICE FUNDS 325: TECHNOLOGY REPLACEMENT FUND 1,977,413 2,485,713 330: SUPPORT SERVICES FUND 4,129 4,234 310: VEHICLES AND EQUIPMENT FUND 4,968,184 5,274,229 320: INFORMATION TECHNOLOGY FUND 1,107,523 1,117,283 350: FACILITY REPLACEMENT FUND 3,064 242,473 TOTAL INTERNAL SERVICE FUNDS 11,448,447 12,507,474 335: SUPPORT SERVICES REPLACEMENT FUND 401,348 403,948 340: FACILITIES FUND 588,150 589,111 Grand Total 87,564,405 93,498,865 TOTAL CAPITAL IMPROVEMENT PROGRAM 14,101,021 14,101,020 CAPITAL IMPROVEMENT PROGRAM 210: CAPITAL IMPROVEMENT PROGRAM FUND 14,101,021 14,101,020 68 General Fund Special Revenue/ Debt Funds TCSD Service Levels Internal Service Funds SARDA Total Revenues Property Tax 10,481,183 10,481,183 Sales Tax 47,818,800 47,818,800 Sales Tax Sharing Agreement (1,362,404)(1,362,404) Transactions And Use Tax 37,610,081 37,610,081 Franchise Fees 3,775,740 3,775,740 Transient Occupancy Tax 3,859,035 3,859,035 Special Tax (Measure C)1,881,987 3,773,339 Gas Tax 5,853,295 5,853,295 Redevelopment Property Tax Fund 557,000 5,895,694 6,452,694 Peg Fees 200,000 200,000 Quimby Fees 1,330,512 1,330,512 Land Development 1,210,840 1,210,840 Public Works 4,942 4,942 Parks Maintenance 1,372 1,372 Police 47,575 47,575 Printing & Copies 6,419 Harveston Lake Boat Revenue 4,200 4,200 Aquatics 132,912 Sports Leagues & Tournaments 156,305 Recycling Program 153,929 153,929 Development Fees 161,070 200,000 361,070 Public Art 17,850 17,850 Development Impact Fees 18,000 12,310,348 12,328,848 Business Licenses 265,302 265,302 Building 1,968,768 1,968,768 Planning 610,498 610,498 Fire 699,502 699,502 Contract Classes 800,000 Classes/Activities 39,162 Facility Rentals 251,457 Museum Admissions 97,612 Theater Admissions 246,000 Day Camps 79,540 Assessments 11,937,440 11,937,440 Charges For Services 10,324,752 10,324,752 Fines & Forfeitures 513,460 529,460 Lease/Rental Income 217,897 226,017 Other 125,380 125,380 Investment Interest 144,330 125,930 6,971 59,465 6,800 346,4963,000 Use of Money and Property 8,120 16,000 Fines and Forfeitures 79,540 251,457 97,612 246,000 800,000 39,162 500 132,912 156,305 6,419 Licenses, Permits and Service Charges 1,891,352 Taxes and Franchises City of Temecula Fiscal Year 2022-23 Annual Operating Budget MAJOR REVENUE SOURCES ‐ ALL FUNDS TCSD Citywide Operations 69 General Fund Special Revenue/ Debt Funds TCSD Service Levels Internal Service Funds SARDA Total Revenues City of Temecula Fiscal Year 2022-23 Annual Operating Budget MAJOR REVENUE SOURCES ‐ ALL FUNDS TCSD Citywide Operations Community Development Block Grant‐CV 630,894 630,894 Property Tax In Lieu Of VLF 9,824,052 9,824,052 Vehicle License Fees 87,954 87,954 Community Development Block Grant 575,000 575,000 AB2766 Motor Vehicle Subvention 150,174 150,174 Agency Trust Contribution 250,000 250,000 SLESF Grant 280,000 280,000 Measure A 3,227,000 3,227,000 Capital Improvement Program 2,402,842 2,402,842 Pechanga IGA 368,219 368,219 Other Reimbursements 1,193,762 1,276,762 Operating Transfers In 10,814,034 2,159,642 400,000 14,373,676 Contribution From Measure S 6,382,496 2,000,000 1,960,000 23,102,339 9,547 69,107 141,136,263 29,867,645 12,502,540 12,344,217 5,902,494 219,383,941Total Revenues and Other Sources 17,630,782 Miscellaneous 59,560 Operating Transfers In 1,000,000 12,759,843 83,000 Reimbursements Intergovernmental Revenues 70 General Fund Special Revenue/ Debt Funds TCSD Service Levels Internal Service Funds SARDA Total Revenues 104,064,422 6,610,295 5,895,694 118,461,763 4,987,869 13,858,710 12,095,569 10,324,752 43,076,807 513,460 529,460 487,607 125,930 6,971 59,465 6,800 697,893 9,912,006 5,113,068 15,025,074 3,964,823 4,047,823 17,196,530 4,159,642 400,000 1,960,000 37,476,015 9,547 69,107 141,136,263 29,867,645 12,502,540 12,344,217 5,902,494 219,383,941 Total Revenues less Interfund Transfers*181,907,927 *Interfund Transfers are eliminated at the Citywide level Total Revenues and Other Sources 17,630,782 Miscellaneous 59,560 Operating Transfers In 13,759,843 Reimbursements 83,000 Intergovernmental Revenues Use of Money and Property 11,120 Fines and Forfeitures 16,000 Licenses, Permits and Service Charges 1,809,907 Taxes and Franchises 1,891,352 City of Temecula Fiscal Year 2022-23 Annual Operating Budget MAJOR REVENUE SOURCES ‐ ALL FUNDS TCSD Citywide Operations Taxes and Franchises 54% Licenses, Permits and Service Charges 20% Fines and Forfeitures 0% Use of Money and Property 0% Intergovernmental Revenues 7% Reimbursements 2% Operating Transfers In 17% Miscellaneous 0% Major Revenue Sources 71 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget MAJOR REVENUE SOURCES All revenue estimates are developed using historical trend data and estimates of commercial and residential construction, assessed valuation, retail sales, population, changes in consumer price indexes, and general economic factors. Property tax revenue estimates are derived with input from an outside consultant, and considers estimated changes on the tax levy, property sales, appeals, and real property improvements. Sales tax revenue estimates are also derived with the input from an outside consultant, and considers factors such as new and closed retailers, business types, population changes, price fluctuations and the general economy. Licenses, permits, and service charges are estimated using building forecasts of the development community, changes in consumer price indexes, established fees for services and program, and historical trend data. The revenue estimates for Tr an sient Occupancy Tax es are derived using average room rates, projected changes in room occupancy, special events, and feedback from Visit Temecula Valley. Taxes and Franchises – 54% of Total Revenue Sales and Use Tax: The largest revenue source for the City of Temecula is Sales and Use Tax, including the City’s Transactions and Use Tax, Measure S. In accordance with the California Revenue and Taxation Code, the State of California imposes a 7.25% sales and use tax on all taxable sales in the City, of which 1% is allocated to the City of Temecula. In 2016, City residents approved Measure S to establish an additional one percent Transactions and Use Tax revenue. This new tax became effective April 1, 2017. The City established the Measure S Fund to account for the fiscal activities related to this new revenue source. In addition, Riverside County voters approved Measure A in 1988, and again in 2002, to establish a half‐cent Sales Tax dedicated to transportation funding. Measure A revenue is recorded in a separate Special Revenue Fund and is categorized as Intergovernmental Revenues. Currently, the total Sales Tax rate within the City is 8.75% The City of Temecula serves as a regional shopping hub with the Promenade Mall, Old Town, and an Auto Mall. Sales and Use Tax revenue is projected to increase by 3.9% from the prior fiscal year to $46,456,396 due to increases in online sales, the opening of new businesses, increases in vehicle and recreation vehicle purchases and investments in home improvement projects. The City continues to maintain a strong and diverse sales tax base by promoting economic development in areas such as manufacturing, light industrial, and retail businesses. Temecula continues to exceed the State, County, and surrounding areas with respect to sales per capita. The Measure S Transactions and Use Tax is estimated to yield $37,610,081 in Fiscal Year 2022‐23 which is an increase of 4% over the prior fiscal year. Measure S revenue continues to exceed original projections of $23,000,000 annually, when the tax was first established in November 2016. Property Tax: Per Proposition 13, passed by California voters in 1978, the ad valorem Property Tax is assessed at 1% of the assessed valuation of real property, as determined by the County Assessor’s Office. The City is projecting Property Tax revenues to increase by 6.3% in Fiscal Year 2022‐23 for a total of $10,481,183 due to the strong housing market combined with anticipated inflation. 72 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget MAJOR REVENUE SOURCES (continued) Transient Occupancy Tax (TOT): The City of Temecula collects an 8% tax on the amount of transient (30 days or less) lodging rentals. TOT revenue is expected to increase with the recent opening of two new hotels and another two in the development process. TOT revenue is projected to increase by 3% over the prior year to a total of $3,859,035 in Fiscal Year 2022‐23. Licenses, Permits and Service Charges – 20% of Total Revenue The California Government Code and State Constitution authorize the City to assess certain license and permit fees as a means of recovering the cost of regulating various activities. Examples include building permits and business licenses. The City also assesses service charges for the Community Services District on recreation programs and facility rentals. Charges for Services also reflect the allocation of costs to departments from the Internal Service Funds, which include Workers’ Compensation, Vehicle and Equipment Replacement, Information Technology, Technology Replacement, Support Services, Support Services Replacement, Facility Operations, and Facility Replacement. In Fiscal Year 2022‐23 Licenses, Permits and Service Charges revenue is projected to be $43,076,807. This category varies from year‐to‐year, primarily due to development‐related revenue. Intergovernmental Revenues – 7% of Total Revenue Intergovernmental Revenues reflect revenue received from other governmental agencies, including: Property Tax distributions from the County for the Successor Agency to the Redevelopment Agency for administration ($250,000); Vehicle License Fees ($87,954); Property Tax in Lieu of Vehicle License Fees ($9,824,052); Public Safety, Recycling, and Community Development Block Grants ($1,636,068); and Measure A transportation revenue ($3,227,000). The estimated intergovernmental revenue for Fiscal Year 2022‐23 is projected to be $14,367,728. Operating Transfers – 17% of Total Revenue This category consists of operating transfers between funds. The estimated operating transfers for Fiscal Year 2022‐23 totals $37,476,015. Significant transfers from the Measure S Fund include $11,784,280 to TCSD Operations, $6,382,496 to the General Fund and $975,563 to the Library Fund, to support operations within these three funds. Additionally, Measure S transfers include deposits into the City’s Asset Management Funds in the amount of $1,960,000 to supplement the existing balances in these replacement funds. Other significant transfers include transfers to the Debt Service Fund pursuant to the lease agreements in the amount of $2,159,642 and transfers from the Gas Tax Fund in the amount of $3,282,716. Gas tax revenues are required to be recorded in a Special Revenue Fund and then transferred to support street and road maintenance costs reflected in the General Fund. Similarly, the Supplemental Law Enforcement Services grant revenue of $280,000 is transferred to the General Fund to support police service expenditures. Total Revenue Sources for Fiscal Year 2022‐23, excluding Interfund Transfers, are projected to be $181,907,927 across all funds. 73 GENERAL FUND CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 The General Fund is the main operating fund for the City of Temecula. It is used to account for all financial resources for the City that are not restricted to a special purpose and otherwise required to be accounted for in another fund. The General Fund provides the resources necessary to sustain the day-to-day activities and pays for all administrative and operating expenditures. 74 Annual OperaƟng Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget GENERAL FUND REVENUES As illustrated in the chart below, Sales and Use Tax is the largest revenue source for the General Fund, and represents 45% of total General Fund revenue. This is due to regional retail destinations within Temecula such as the Promenade Mall, Old Town and the Auto Mall. Sales and Use Tax revenue is projected to increase by 3.9% over the prior year due to the continued economic rebound following the COVID‐19 global pandemic, as well as the opening of a number of new businesses. FISCAL YEAR 2022‐23 GENERAL FUND REVENUES ‐ $103,455,801 Property Taxes are the second largest source of revenue for the General Fund and comprise 10% of total General Fund revenue. These revenues primarily include Secured and Unsecured Property Taxes, property transfer taxes, and residual Redevelopment Property Tax Trust Fund (RPTTF) distributions. Property tax revenues are projected to increase 6.3% over the prior fiscal year to $10,481,183. This change is based on an anticipated increase in assessed valuation of property within the City which has experienced 13% growth in the median home price over the past year, to $727,000 (March 2022). Operating Transfers In from Measure S comprise 6% of total General Fund revenues. This one‐cent Transactions and Use Tax is accounted for in a separate fund, and a portion is transferred into the General Fund to support public safety. The FY22‐23 transfer of $6,382,496 will fund the continued cost of eleven sworn police officers to maintain the current officer‐per‐resident ratio of 1:1000. Additionally, Measure S funds the full year’s staffing of Fire Station No. 95 which opened January 1, 2019, the fire inspection program, future vehicle replacement costs for a new Fire Ladder Truck, four inspection vehicles and the ongoing cost to maintain fire department personnel staffing levels at four‐persons‐per‐engine. 75 Annual OperaƟng Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget Property Tax in Lieu of Vehicle License Fees comprises 9% of total General Fund revenue. This revenue source is allocated to ciƟes based on overall City assessed property valuaƟon. Property Tax in Lieu of Vehicle License Fee revenue is expected to increase by 6.8% over the prior ﬁscal year to $9,912,006. This change is based on an anƟcipated increase in assessed valuaƟon of property within the City of Temecula. Licenses, Permits, and Charges for Services comprise 5% of total General Fund revenues and include Business License and Permit fees. This category is projected to decrease 13% from the prior year to $5,087,844, due to a large residential development project completed in the previous fiscal year. Franchise Fees comprise 4% of total General Fund revenues. Franchise fees are the "rent" or "reimbursement" that utility and cable providers pay for the use of the public's right‐of‐way. The City of Temecula receives Franchise Fees from cable, natural gas, electricity and refuse collection operators. These revenues are projected to increase 1% over the prior year to $3,775,740. Transient Occupancy Tax (TOT) is an 8% tax collected by the City on the amount of all transient (30 days or less) lodging rentals. This tax comprises 4% of General Fund Revenues. As the hardest hit General Fund revenue source, TOT declined by more than 22% since the onset of the pandemic in March 2020. Despite the impact to this sector, Temecula has had two new hotels open since the pandemic with another two in various stages of development. TOT revenue is projected to increase by 3% in FY22‐23 to $3,859,035. Operating Transfers In comprise 3% of total General Fund revenues. This category includes the operating transfer of Gas Tax revenue ($3,282,716), grant funds from the Supplemental Law Enforcement Services Fund ($367,286), and the repayment of funds advanced to the Development Impact Fees fund for Fire Station 73 Renovation ($124,276). This revenue category is increasing by 6.5% from the prior year due primarily to increasing gasoline sales. Special Tax (Measure C) comprises 2% of total General Fund revenues. This category is projected to remain flat compared to the prior year at $1,881,987. Measure C is a special tax charged to property owners in order to finance the operation, maintenance and servicing of public parks and recreational facilities, recreational and community services programs, median landscaping, arterial street lights and traffic signals. The maximum amount for each fiscal year is set by ordinance at $74.44 per single‐family residential dwelling unit, $55.83 per multi‐family residential dwelling unit, $148.88 per acre of vacant property in a residential zone, $297.76 per acre of vacant property in a non‐residential zone, $446.64 per acre of non‐residential improved property, and $37.22 per acre for agriculture uses. Measure C is allocated 50% in the General Fund and 50% in the Community Services District. Other ‐ The majority of this category consists of the American Rescue Plan Act (ARPA) grant funding received over two fiscal years from the Federal government. A total of $14,079,508, received in two equal installments, beginning in Fiscal Year 2021‐22, will be utilized to fund public safety services. 76 REVENUE BY SOURCE 001 - GENERAL FUND Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Taxes and Franchises PROPERTY TAX 9,413,841 9,861,418 10,481,183 619,765 6.3% SALES TAX 42,573,718 45,979,616 47,818,800 1,839,184 4.0% SALES TAX SHARING AGREEMENT (1,216,873)(1,277,716)(1,362,404)(84,688)-6.6% FRANCHISE FEES 3,724,781 3,738,356 3,775,740 37,384 1.0% TRANSIENT OCCUPANCY TAX 3,022,209 3,746,636 3,859,035 112,399 3.0% SPECIAL TAX (MEASURE C)1,892,962 1,872,624 1,881,987 9,363 0.5% Licenses, Permits and Service Charges LAND DEVELOPMENT 2,292,104 1,187,090 1,210,840 23,750 2.0% PUBLIC WORKS 4,750 4,845 4,942 97 2.0% PARKS MAINTENANCE -1,020 1,372 352 34.5% POLICE 45,227 47,000 47,575 575 1.2% DEVELOPMENT FEES 164,698 211,470 161,070 (50,400)-23.8% DEVELOPMENT IMPACT FEES 22,708 18,000 18,000 -0.0% BUSINESS LICENSES 256,845 260,100 265,302 5,202 2.0% BUILDING 2,317,035 2,539,552 1,968,768 (570,784)-22.5% PLANNING 631,350 802,486 610,498 (191,988)-23.9% FIRE 953,382 837,002 699,502 (137,500)-16.4% Fines and Forfeitures FINES & FORFEITURES 539,794 503,343 513,460 10,117 2.0% Use of Money and Property LEASE/RENTAL INCOME 140,303 213,625 217,897 4,272 2.0% OTHER 79,231 79,967 125,380 45,413 56.8% INVESTMENT INTEREST (320,090)72,500 73,950 1,450 2.0% Intergovernmental Revenues PROPERTY TAX IN LIEU OF VLF 8,798,060 9,194,656 9,824,052 629,396 6.8% VEHICLE LICENSE FEES 82,123 86,229 87,954 1,725 2.0% GRANTS 3,500 ---0.0% Reimbursements CAPITAL IMPROVEMENT PROGRAM 2,196,284 2,290,748 2,402,842 112,094 4.9% PECHANGA IGA 688,803 352,363 368,219 15,856 4.5% OTHER REIMBURSEMENTS 302,830 670,460 1,193,762 523,302 78.1% Operating Transfers In OPERATING TRANSFERS IN 4,264,863 10,585,010 10,814,034 229,024 2.2% CONTRIBUTION FROM MEASURE S 5,944,780 6,266,670 6,382,496 115,826 1.8% Miscellaneous MISCELLANEOUS 55,022 54,560 9,547 (45,013)-82.5% Total Revenues and Other Sources 88,874,241 100,199,630 103,455,802 3,256,173 3.2% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 77 REVENUE DETAIL 001 - GENERAL FUND Fund 001 Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease 161 - PLANNING 769,219 987,088 750,000 (237,088)-24.0% 162 - BUILDING & SAFETY 2,282,931 2,458,160 1,881,768 (576,392)-23.4% 163 - LAND DEVELOPMENT 2,292,104 1,187,488 1,211,238 23,750 2.0% 164 - PUBLIC WORKS 92,054 50 150,150 150,100 300200.0% 167 - PARKS MAINTENANCE 1,966,884 1,943,742 1,954,577 10,835 0.6% 170 - POLICE 389,709 367,750 375,105 7,355 2.0% 171 - FIRE 1,038,946 961,956 822,002 (139,954)-14.5% 199 - NON-DEPARTMENTAL 4008 RESIDUAL RPTTF DISTRIBUTION 86,713 103,000 106,090 3,090 3.0% 4010 PROPERTY TAX - SECURED 7,674,367 8,034,073 8,529,201 495,128 6.2% 4012 PROPERTY TAX - UNSECURED 341,549 423,037 488,769 65,732 15.5% 4013 SUPPLEMENTAL TAX - AB 2345 204,225 80,800 100,000 19,200 23.8% 4016 PROPERTY TRANSFER TAX 1,036,493 1,146,700 1,181,101 34,401 3.0% 4018 FRANCHISE FEES 3,724,781 3,738,356 3,775,740 37,384 1.0% 4020 TRANSIENT OCCUPANCY TAX 3,022,209 3,746,636 3,859,035 112,399 3.0% 4024 SALES & USE TAX - STATE 42,573,718 45,979,616 47,818,800 1,839,184 4.0% 4026 SALES TAX SHARING AGREEMENT (1,216,873)(1,277,716)(1,362,404)(84,688)-6.6% 4028 HOMEOWNER PROPERTY TAX RELIEF 70,495 73,808 76,022 2,214 3.0% 4043 PROPERTY TAX IN LIEU OF VLF 8,798,060 9,194,656 9,824,052 629,396 6.8% 4046 MOTOR VEHICLE IN LIEU-STATE 82,123 86,229 87,954 1,725 2.0% 4047 VEHICLE CODE FINES 346,041 363,343 370,610 7,267 2.0% 4053 BIDS & PROPOSALS 4,750 4,845 4,942 97 2.0% 4056 BUSINESS LICENSE 256,845 260,100 265,302 5,202 2.0% 4060 MISCELLANEOUS NON TAXABLE 16,582 32,555 82,380 49,825 153.0% 4061 RETURNED CHECK FEE 30 200 -(200)-100.0% 4062 RECOVERY OF PRIOR YEAR EXPENSE 36,251 40,000 -(40,000)-100.0% 4064 RIGHT OF WAY ADVERTISING 14,400 9,360 9,547 187 2.0% 4065 INVESTMENT INTEREST 77,678 72,500 73,950 1,450 2.0% 4070 CASH OVER & SHORT (437)---0.0% 4075 RENTAL INCOME 58,254 137,352 140,099 2,747 2.0% 4076 REIMBURSEMENTS 39,526 30,513 188,046 157,533 516.3% 4078 REIMBURSEMENT-PECHANGA IGA 688,803 352,363 368,219 15,856 4.5% 4084 REIMBURSEMENTS FROM CIP 2,196,284 2,290,748 2,402,842 112,094 4.9% 4089 OPERATING TRANSFER IN MEASURE S 5,944,780 6,266,670 6,382,496 115,826 1.8% 4090 OPERATING TRANSFERS IN 4,264,863 10,585,010 10,814,034 229,024 2.2% 4094 LEASE INCOME 8,126 7,500 7,650 150 2.0% 4162 ELECTRIC VEHICLE CHARGING FEES 4,341 5,000 -(5,000)-100.0% 4179 DIAZ ROAD IMPROVEMENTS IN LIEU 16,000 ---0.0% 4181 REIMBURSEMENT SERVICES CFD -429,992 643,346 213,354 49.6% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 78 REVENUE DETAIL 001 - GENERAL FUND Fund 001 Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease 4300 STATE MANDATED COST 33,532 44,000 44,000 -0.0% 4545 GASB 31 - FMV ON INVESTMENTS (397,331)---0.0% 4550 GAIN ON DISPOSAL OF ASSETS 25,539 3,000 -(3,000)-100.0% 4940 SB 1186 COLLECTION STATE $1 FEE 6 10 -(10)-100.0% 4941 AB1379 COLLECTION STATE $4 FEE 9,670 29,140 29,140 -0.0% TOTAL GENERAL FUND 88,874,241 100,199,630 103,455,802 3,256,173 3.2% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 79 001 - GENERAL FUND SUMMARY Description 2020-21 Actuals 2021-22 Current Budget 2022-23 Proposed Budget Increase/ (Decrease) % Increase/ (Decrease) Revenues by Category Taxes and Franchises 59,410,639 63,920,934 66,454,341 2,533,407 4.0 % Licenses, Permits and Service Charges 6,688,099 5,908,565 4,987,869 (920,696)-15.6 % Fines and Forfeitures 539,794 503,343 513,460 10,117 2.0 % Use of Money and Property (100,556)366,092 417,227 51,135 14.0 % Intergovernmental Revenues 8,883,683 9,280,885 9,912,006 631,121 6.8 % Reimbursements 3,187,917 3,313,571 3,964,823 651,252 19.7 % Operating Transfers In 10,209,643 16,851,680 17,196,530 344,850 2.0 % Miscellaneous 55,022 54,560 9,547 (45,013)-82.5 % Total Operating Revenues 88,874,241 100,199,630 103,455,802 3,256,173 3.2 % Expenditures by Department City Council 474,860 563,252 615,218 51,965 9.2 % Community Support 109,082 125,000 125,000 0 0.0 % City Manager 1,553,078 2,083,202 1,915,686 (167,517)-8.0 % Economic Development 1,441,650 1,526,824 1,766,870 240,046 15.7 % Emergency Management 486,178 394,596 552,044 157,449 39.9 % City Clerk 1,244,116 1,432,145 1,538,835 106,690 7.4 % City Attorney 426,146 450,000 472,500 22,500 5.0 % Finance 2,468,771 2,953,410 3,282,538 329,129 11.1 % Human Resources 919,263 1,381,432 1,459,985 78,552 5.7 % Planning 2,269,034 3,015,317 3,621,189 605,873 20.1 % Building & Safety 3,116,141 3,859,709 4,441,663 581,954 15.1 % Land Development 1,599,976 2,074,366 2,185,712 111,346 5.4 % Public Works 5,069,156 6,889,117 7,283,477 394,360 5.7 % Cip Public Works 2,406,605 2,770,609 3,276,279 505,670 18.3 % Parks Maintenance 3,892,486 4,484,929 5,291,812 806,882 18.0 % Police 34,833,531 37,715,317 41,061,970 3,346,654 8.9 % Fire 7,465,541 9,513,032 11,222,582 1,709,550 18.0 % Animal Control 451,864 500,958 452,028 (48,930)-9.8 % Non Departmental: Property Tax Admin Fees 94,172 89,857 91,654 1,797 2.0 % Staffing Continuity Reserve 0 200,000 200,000 0 0.0 % PERS Replacement Benefit 108,524 101,423 103,451 2,028 2.0 % Retiree Medical Contribution 1,000,000 1,000,000 1,000,000 0 0.0 % Total Operating Expenditures 71,430,176 83,124,495 91,960,495 8,836,001 10.6 % Excess of Revenues Over (Under) Expenditures 17,444,065 17,075,135 11,495,307 (5,579,828)-32.7 % Fund Description The General Fund is the main operating fund for the City of Temecula. It is used to account for all financial resources for the City that are not restricted to a special purpose and otherwise required to be accounted for in another fund. The General fund provides the resources necessary to sustain the day-to-day activities and pays for all administrative and operating expenditures. City of Temecula Fiscal Year 2022-23 Annual Operating Budget 80 Operating Transfers Out / One Time Payments Operating Transfer Out (4,733,575)(14,080,421)(11,199,642)2,880,779 -20.5 % 2018 Lease (Civic Center)(1,603,835) 2018 Lease (MRC)(555,807) CIP - General Plan Update (500,000) Community Reinvestment Program (7,040,000) Fire Facility Acquisition Fund Contribution (1,500,000) Total Transfers Out / One Time Payments (4,733,575)(14,080,421)(11,199,642)(2,880,779)-20.5 % Description 2020-21 Actuals 2021-22 Current Budget 2022-23 Proposed Budget Increase/ (Decrease) % Increase/ (Decrease) Excess of Revenues Over (Under) Expenditures 17,444,065 17,075,135 11,495,307 (5,579,828)-32.7 % 001 - GENERAL FUND SUMMARY Fund Balance, Beginning of Year 32,533,450 45,243,940 48,238,654 2,994,714 6.6 % Fund Balance, End of Year 45,243,940 48,238,654 48,534,319 295,665 0.6 % Nonspendable: Inventory 3,058 0 0 0 0.0 % Deposits 1,325 0 0 0 0.0 % Committed To: Economic Uncertainty Reserve (20%)14,570,823 15,863,511 16,336,453 (472,942)3.0 % Secondary Reserve (5%)3,642,706 3,965,878 4,084,113 (118,235)3.0 % Pechanga IGA 356,567 352,363 373,504 (21,141)6.0 % Assigned To: Capital Projects 0 713,331 579,779 133,552 -18.7 % Unassigned:26,669,461 27,343,571 27,160,470 183,101 -0.7 % 45,243,940 48,238,654 48,534,319 295,665 0.6 % Detail of Fund Balance City of Temecula Fiscal Year 2022-23 Annual Operating Budget 81 006 - FIRE FACILITY ACQUISITION FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Operating Transfers In OPERATING TRANSFERS IN -1,500,000 1,500,000 -0.0% Revenues/Other Sources -1,500,000 1,500,000 -0.0% Net Revenues -1,500,000 1,500,000 -0.0% Fund Balance, Beginning of Year -1,500,000 1,500,000 100.0% Fund Balance, End of Year -1,500,000 3,000,000 1,500,000 100.0% Fund Description This fund was established to accumulate resources necessary to acquire property for a future Fire Station, construct new Fire Station or refurbish existing Fire Stations. Analysis/Comments The Operating Transfer In comes from available General Funds and will accumulate over time in order to accumulate funds to meet the facility needs of the Fire Department. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 82 110 - COVID-19 PANDEMIC COMMUNITY REINVESTMENT PROGRAM SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Operating Transfers In OPERATING TRANSFERS IN -7,040,000 7,040,000 -0.0% Revenues/Other Sources -7,040,000 7,040,000 -0.0% Expenditures by Category SALARIES & BENEFITS -20,395 24,067 3,672 18.0% OPERATIONS & MAINTENANCE --7,535,538 7,535,538 100.0% TRANSFERS -4,000,000 1,000,000 (3,000,000)-75.0% Expenditures/Other Financing Uses -4,020,395 8,559,605 4,539,210 112.9% Net Revenues -3,019,605 (1,519,605)(4,539,210)41.0% Fund Balance, Beginning of Year -3,019,605 3,019,605 100.0% Fund Balance, End of Year -3,019,605 1,500,000 (1,519,605)-50.3% Fund Description This fund was established in Fiscal Year 2021-22 to provide various community grants to support the local economy in its recovery from the COVID-19 global pandemic. Available General Fund balance was transferred into this fund to establish this new program. Analysis/Comments This fund reflects the transfer in of available General Fund dollars to establish and support the local economy's recovery from the global pandemic. The Council approved six funding categories, including: - Business Support ($3,580,000) - Non-Profit Support ($2,000,000) - Homeless Services ($1,000,000) - Housing Assistance ($5,500,000) - Behavioral Health Services ($1,000,000) - Higher Education/Workforce Development ($1,000,000) Funding will be appropriated throughout the fiscal year as the programs within each category are developed. Salaries and Benefits reflect support personnel for the Workforce Development category. The $4 million Transfer in Fiscal Year 2021-22 reflects funding for Affordable Housing and the $1 million Transfer in Fiscal Year 2022-23 reflects support for homeless services funded from the TCSD Operations Fund. Operations and Maintenance of $7,535,538 reflect the funding to the remaining categories. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 83 MEASURE S FUND CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 Measure S, approved by the voters on November 8, 2016, established a one-cent Transactions and Use Tax for the City. The measure was approved based on the commitment to maintain 9- 1-1 emergency response times, prevent cuts to local paramedic/police/fire protection, school safety patrols, youth/after-school, senior and disabled services; improve freeway interchanges/reduce traffic and provide for other general services. It is estimated that this tax will generate approximately $30 million annually. 84 002 - MEASURE S FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Taxes and Franchises TRANSACTIONS AND USE TAX 33,484,758 36,163,539 37,610,081 1,446,542 4.0% Use of Money and Property INVESTMENT INTEREST 40,650 69,000 70,380 1,380 2.0% Revenues/Other Sources 33,525,409 36,232,539 37,680,461 1,447,922 4.0% Expenditures by Category TRANSFERS 23,755,497 50,062,859 38,044,428 (12,018,431)-24.0% Expenditures/Other Financing Uses 23,755,497 50,062,859 38,044,428 (12,018,431)-24.0% Net Revenues 9,769,912 (13,830,320)(363,967)13,466,353 -12.2% Fund Balance, Beginning of Year 15,445,691 25,215,603 11,385,283 (13,830,320)-54.8% Fund Balance, End of Year 25,215,603 11,385,283 11,021,316 (363,967)-3.2% Fund Description Measure S, approved by the voters on November 8, 2016, established a one-cent Transactions and Use Tax for the City. The measure was approved based on the commitment to maintain 9-1-1 emergency response times, prevent cuts to local paramedic/police/fire protection, school safety patrols, youth/after-school, senior and disabled services; improve freeway interchanges/reduce traffic and provide for other general services. Analysis/Comments Measure S revenue is expected to increase by 4.0%, as the local economy remains strong and continues to expand. Expenditures are in line with the Council's Appropriation Guidelines for Measure S and reflect transfers to fund Public Safety ($6.6 million), Asset Management ($3.7 million), Capital Improvements ($14.9M), and General/Community Services ($12.8 million). City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 85 SPECIAL REVENUE AND DEBT SERVICE FUND SUMMARIES CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 Special Revenue Funds are used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law. Debt Service Funds are used to account for the resources necessary to pay principle and interest payments on general long-term debt obligations of the City and related entities. 86 2020-2021 Actuals 2021-2022 Current Budget Increase/ (Decrease) % Increase/ Decrease 4065 1,768 - - 0.0% 4700 356,813 400,647 - 0.0% 4701 579,635 655,207 - 0.0% 4702 784,434 874,413 (40,612) -4.6% 4704 10,000 10,000 - 0.0% 4706 780,519 1,005,528 377,535 37.5% 2,513,170 2,945,795 336,923 11.4% 4065 13,424 14,250 - 0.0% 4545 (8,732) - - 0.0% 4709 2,058,949 2,335,769 234,808 10.1% 2,063,640 2,350,019 234,808 10.0% 4065 11,108 10,800 - 0.0% 4089 2,000,000 2,000,000 - 0.0% 4545 (7,155) - - 0.0% 2,003,953 2,010,800 - 0.0% 4721 - - 200,000 100.0% - - 200,000 100.0% 4065 6,014 6,600 - 0.0% 4259 - 688,880 (590,480) -85.7% 4545 (3,339) - - 0.0% 2,674 695,480 (590,480) -84.9% 4025 1,382,508 - - 0.0% 1,382,508 - - 0.0% 4025 - 7,039,754 - 0.0% - 7,039,754 - 0.0% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget REVENUE DETAIL SPECIAL REVENUE & DEBT SERVICE FUNDS Description 2022-2023 Proposed Budget GAS TAX 2105 655,207 GAS TAX 2107 833,801 GAS TAX 2107.5 10,000 100 - GAS TAX FUND INVESTMENT INTEREST - GAS TAX 2106 400,647 TOTAL RMRA FUND 2,584,827 INVESTMENT INTEREST 14,250 GASB 31 - FMV ON INVESTMENTS - 102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA) FUND GAS TAX 2103 1,383,063 TOTAL GAS TAX FUND 3,282,718 RMRA-ROAD MAINTENANCE REHABILITATION ACT 2,570,577 GASB 31 - FMV ON INVESTMENTS - TOTAL STREET MAINTENANCE FUND 2,010,800 103 - STREET MAINTENANCE FUND INVESTMENT INTEREST 10,800 OPERATING TRANSFER IN MEASURE S 2,000,000 106 - UPTOWN TEMECULA NEW STREETS IN-LIEU FEES INVESTMENT INTEREST 6,600 UPTOWN TEMECULA NEW STREETS IN LIEU FEES 98,400 105 - NPDES IN LIEU FEES FUND NPDES IN-LIEU FEES 200,000 TOTAL NPDES IN LIEU FEES FUND 200,000 107 - CARES ACT GRANTS - TOTAL CARES ACT - GASB 31 - FMV ON INVESTMENTS - 105,000UPTOWN TEMECULA NEW STREETS IN-LIEU FEES 108 - AMERICAN RESCUE PLAN ACT (ARPA) GRANTS 7,039,754 TOTAL ARPA 7,039,754 87 2020-2021 Actuals 2021-2022 Current Budget Increase/ (Decrease) % Increase/ Decrease City of Temecula Fiscal Year 2022-2023 Annual Operating Budget REVENUE DETAIL SPECIAL REVENUE & DEBT SERVICE FUNDS Description 2022-2023 Proposed Budget 4051 124,133 360,057 170,694 47.4% 4065 20,149 22,000 - 0.0% 4240 34,441 2,300,445 (969,933) -42.2% 4242 618,369 1,555,843 4,912,688 315.8% 4243 88,096 223,153 708,681 317.6% 4244 425,874 604,538 1,216,337 201.2% 4245 250,535 320,892 424,545 132.3% 4246 83,599 121,729 332,974 273.5% 4247 380,954 434,398 359,119 82.7% 4256 74,808 161,558 304,742 188.6% 4545 (12,500) - - 0.0% 2,088,459 6,104,613 7,459,847 122.2% 4039 215,696 220,207 (20,207) -9.2% 4065 3,058 3,300 - 0.0% 4545 (1,781) - - 0.0% 216,973 223,507 (20,207) -9.0% 4081 63,909 1,951,752 (1,376,752) -70.5% 4090 412,056 - - 0.0% 4164 - 329,000 (329,000) -100.0% 4169 - 836,934 (206,040) -24.6% 475,965 3,117,686 (1,911,792) -61.3% 4065 2,411 1,500 (1,500) -100.0% 4076 640,755 - - 0.0% 4545 (1,838) - - 0.0% 641,328 1,500 (1,500) -100.0% 4048 146,208 146,915 3,259 2.2% 4065 343 315 - 0.0% 4545 (398) - - 0.0% 146,153 147,230 3,259 2.2% 4065 350 665 - 0.0% 4085 365,455 279,185 815 0.3% 365,806 279,850 815 0.3% 4065 184 200 (200) -100.0% 4545 (101) - - 0.0% 83 200 (200) -100.0% CIP - DIF-TRAFFIC SIGNALS 931,834 CIP - DIF-PARK & REC IMPROVEMENTS 1,820,875 CIP - DIF-CORPORATE FACILITIES 745,437 CIP - DIF-FIRE PROTECTION FACILITIES 454,703 TOTAL DEVELOPMENT IMPACT FEES FUND 13,564,460 CIP - DIF-LIBRARY FACILITIES 793,517 CIP - DIF-POLICE FACILITIES 466,300 GASB 31 - FMV ON INVESTMENTS - 120 - DEVELOPMENT IMPACT FEES FUND CIP - DIF-OPEN SPACE AND TRAILS 530,751 INVESTMENT INTEREST 22,000 CIP - DIF - QUIMBY 1,330,512 CIP - DIF-STREET IMPROVEMENTS 6,468,531 TOTAL COMMUNITY DEV BLOCK GRANT FUND 1,205,894 GASB 31 - FMV ON INVESTMENTS - TOTAL PEG FUND 203,300 125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND PEG FEES REVENUES 200,000 INVESTMENT INTEREST 3,300 140 - COMMUNITY DEV BLOCK GRANT FUND COMM DEVELOPMENT BLOCK GRANT 575,000 OPERATING TRANSFERS IN - CDBG-CV - CDBG-CV2 630,894 GASB 31 - FMV ON INVESTMENTS - TOTAL TEAM FUND - INVESTMENT INTEREST - REIMBURSEMENTS - 145 - TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND GASB 31 - FMV ON INVESTMENTS - 150,489TOTAL AB 2766 MOTOR VEHICLE SUBVENTION FUND 150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND AB 2766 REVENUES 150,174 INVESTMENT INTEREST 315 280,665 160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND TOTAL SUPPLEMENTAL LAW ENFORCEMENT SERVICES 161 - TEMECULA MAJOR CRIMES REWARD FUND INVESTMENT INTEREST 665 SUPPLEMENTAL LAW ENFORCEMENT SERVICES 280,000 INVESTMENT INTEREST - GASB 31 - FMV ON INVESTMENTS - TOTAL TEMECULA MAJOR CRIMES REWARD - 88 2020-2021 Actuals 2021-2022 Current Budget Increase/ (Decrease) % Increase/ Decrease City of Temecula Fiscal Year 2022-2023 Annual Operating Budget REVENUE DETAIL SPECIAL REVENUE & DEBT SERVICE FUNDS Description 2022-2023 Proposed Budget 4009 38,869 - - 0.0% 4060 3,000 - - 0.0% 4065 13,275 14,000 - 0.0% 4075 84,019 - - 0.0% 4092 250,000 250,000 - 0.0% 4545 (7,392) - - 0.0% 4800 - 10,327,424 (10,327,424) -100.0% 4805 - 1,301,719 (744,719) -57.2% 381,771 11,893,143 (11,072,143) -93.1% 4065 51,092 53,500 - 0.0% 4545 (30,143) - - 0.0% 4725 3,969,257 4,167,720 (940,720) -22.6% 3,990,206 4,221,220 (940,720) -22.3% 4065 470 500 - 0.0% 4251 34,281 64,188 (46,338) -72.2% 4545 (284) - - 0.0% 34,467 64,688 (46,338) -71.6% 4090 2,077,767 1,962,107 (358,272) -18.3% 2,077,767 1,962,107 (358,272) -18.3% 4090 555,808 555,808 (1) 0.0% 555,808 555,808 (1) 0.0% 165 - AFFORDABLE HOUSING FUND RESIDUAL RECEIPT PAYMENT - MISCELLANEOUS NON TAXABLE - GASB 31 - FMV ON INVESTMENTS - BOND PROCEEDS - SERAF 557,000 INVESTMENT INTEREST 14,000 RENTAL INCOME - CONTRIBUTIONS AGENCY TRUST 250,000 GASB 31 - FMV ON INVESTMENTS - MEASURE A ALLOCATIONS 3,227,000 TOTAL MEASURE A FUND 3,280,500 TOTAL AFFORDABLE HOUSING FUND 821,000 170 - MEASURE A FUND INVESTMENT INTEREST 53,500 GASB 31 - FMV ON INVESTMENTS - TOTAL PUBLIC ART FUND 18,350 395 - 2018 FINANCING LEASE (CIVIC CENTER) FUND 198 - PUBLIC ART FUND INVESTMENT INTEREST 500 PUBLIC ART 17,850 OPERATING TRANSFERS IN 555,807 TOTAL 2018 FINANCING LEASE (MRC) FUND 555,807 OPERATING TRANSFERS IN 1,603,835 TOTAL 2018 FINANCING LEASE (CIVIC CENTER) 1,603,835 396 - 2018 FINANCING LEASE (MRC) FUND 89 100 - GAS TAX FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Taxes and Franchises GAS TAX 2,511,401 2,945,795 3,282,718 336,923 11.4% Use of Money and Property INVESTMENT INTEREST 1,768 ---0.0% Revenues/Other Sources 2,513,170 2,945,795 3,282,718 336,923 11.4% Expenditures by Category TRANSFERS 2,513,170 3,047,672 3,282,718 235,046 7.7% Expenditures/Other Financing Uses 2,513,170 3,047,672 3,282,718 235,046 7.7% Net Revenues -(101,877)-101,877 9.5% Fund Balance, Beginning of Year 101,877 101,877 -(101,877)-100.0% Fund Balance, End of Year 101,877 ---0.0% Fund Description This fund was established to account for the tax per gallon on the purchase of motor vehicle fuel imposed by the State of California. A portion is allocated to the City of Temecula as specified in the California Streets and Highways Code (SHC) (Sections 2013, 2105, 2107 and 2107.5). Gas Tax monies are restricted to the repair, maintenance and upkeep of City streets and roads, and the purchase of equipment used to maintain roads. Analysis/Comments Gas Tax revenue is projected to increase by 11.4% due to the increase in the volume of gasoline sales. Expenditures reflect the transfer of funds to the General Fund to augment the Public Works budget for street and road maintenance. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 90 102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA) FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Taxes and Franchises GAS TAX 2,058,949 2,335,769 2,570,577 234,808 10.1% Use of Money and Property INVESTMENT INTEREST 4,692 14,250 14,250 -0.0% Revenues/Other Sources 2,063,640 2,350,019 2,584,827 234,808 10.0% Expenditures by Category TRANSFERS 1,802,742 3,790,721 2,269,086 (1,521,635)-40.1% Expenditures/Other Financing Uses 1,802,742 3,790,721 2,269,086 (1,521,635)-40.1% Net Revenues 260,898 (1,440,702)315,741 1,756,443 -21.0% Fund Balance, Beginning of Year 1,324,432 1,585,330 144,628 (1,440,702)-90.9% Fund Balance, End of Year 1,585,330 144,628 460,369 315,741 218.3% Fund Description This fund is to account for gasoline and vehicle registration taxes pursuant to the Road Repair and Accountability Act of 2017 (SB1 Beall). Monies are collected by the State of California and allocated to local agencies for streets and roads projects and other transportation uses. Analysis/Comments RMRA revenue is projected to increase by 10.0% due to increases in gasoline excise taxes and vehicle registration fees. Expenditures reflect the transfer to the Capital Improvement Program to fund the Pavement Rehabilitation project. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 91 103 - STREET MAINTENANCE FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 3,953 10,800 10,800 -0.0% Operating Transfers In CONTRIBUTION FROM MEASURE S 2,000,000 2,000,000 2,000,000 -0.0% Revenues/Other Sources 2,003,953 2,010,800 2,010,800 -0.0% Net Revenues 2,003,953 2,010,800 2,010,800 -0.0% Fund Balance, Beginning of Year 1,457,541 3,461,494 5,472,294 2,010,800 58.1% Fund Balance, End of Year 3,461,494 5,472,294 7,483,094 2,010,800 36.7% Fund Description This fund was established to accumulate resources for the future replacement of streets and roads throughout the City. Analysis/Comments Contributions from the Measure S Fund will continue in order to accumulate resources for future street and road replacement. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 92 105 - NPDES IN LIEU FEES FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges DEVELOPMENT FEES --200,000 200,000 100.0% Revenues/Other Sources --200,000 200,000 100.0% Net Revenues --200,000 200,000 100.0% Fund Balance, Beginning of Year ----0.0% Fund Balance, End of Year --200,000 200,000 100.0% Fund Description This fund was established to account for the collection of In Lieu fees associated with the National Pollutant Discharge Elimination System (NPDES). Analysis/Comments Revenue is received as private development subject to NPDES requirements occur. FY2022-23 revenue is anticipated to be $200,000, however no expenditures have been programmed for these funds yet. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 93 106 - UPTOWN TEMECULA NEW STREETS IN-LIEU FEES SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges DEVELOPMENT IMPACT FEES -688,880 98,400 (590,480)-85.7% Use of Money and Property INVESTMENT INTEREST 2,674 6,600 6,600 -0.0% Revenues/Other Sources 2,674 695,480 105,000 (590,480)-84.9% Expenditures by Category TRANSFERS -500,857 -(500,857)-100.0% Expenditures/Other Financing Uses -500,857 -(500,857)-100.0% Net Revenues 2,674 194,623 105,000 (89,623)-91.2% Fund Balance, Beginning of Year 892,717 895,391 1,090,014 194,623 21.7% Fund Balance, End of Year 895,391 1,090,014 1,195,014 105,000 9.6% Fund Description This fund was established in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In-Lieu Fee. The Specific Plan requires developers to dedicate right-of-way and construct new street improvements adjacent to or through their development sites. Developers within the Specific Plan who cannot contribute right-of-way and/or build new streets will be charged a new streets in-lieu fee. Analysis/Comments Revenue growth in this fund is related to a new hotel and an affordable housing development in the Uptown Temecula Specific Plan area. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 94 107 - CARES ACT SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Intergovernmental Revenues GRANTS 1,382,508 ---0.0% Revenues/Other Sources 1,382,508 ---0.0% Expenditures by Category TRANSFERS 1,382,508 ---0.0% Expenditures/Other Financing Uses 1,382,508 ---0.0% Net Revenues ----0.0% Fund Balance, Beginning of Year ----0.0% Fund Balance, End of Year ----0.0% Fund Description This fund was established to account for the receipt of Federal 2020 Coronavirus Aid Relief and Economic Security Act (CARES) funds. Analysis/Comments CARES Act revenue was transferred to the General Fund to reimburse eligible expenditures related to public safety, legal fees, food service programs, medical expenses and staffing costs to support the City's response to the COVID-19 global pandemic. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 95 108 - ARPA SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Intergovernmental Revenues GRANTS -7,039,754 7,039,754 -0.0% Revenues/Other Sources -7,039,754 7,039,754 -0.0% Expenditures by Category TRANSFERS -7,039,754 7,039,754 -0.0% Expenditures/Other Financing Uses -7,039,754 7,039,754 -0.0% Net Revenues ----0.0% Fund Balance, Beginning of Year ---0.0% Fund Balance, End of Year ----0.0% Fund Description This fund was established to account for the receipt of Federal 2021-22 American Rescue Plan Act (ARPA) funds. Analysis/Comments Revenue in this fund reflects the receipt of the Federal ARPA grant funding of $14,079,508, which is received in two equal installments in FY21- 22 and FY22-23. The funds were transferred to the General Fund to support public safety services. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 96 120 - DEVELOPMENT IMPACT FEES FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges QUIMBY FEES 34,441 2,300,445 1,330,512 (969,933)-42.2% DEVELOPMENT IMPACT FEES 2,046,369 3,782,168 12,211,948 8,429,780 222.9% Use of Money and Property INVESTMENT INTEREST 7,648 22,000 22,000 -0.0% Revenues/Other Sources 2,088,459 6,104,613 13,564,460 7,459,847 122.2% Expenditures by Category TRANSFERS 1,115,835 5,681,330 9,557,980 3,876,650 68.2% Expenditures/Other Financing Uses 1,115,835 5,681,330 9,557,980 3,876,650 68.2% Net Revenues 972,624 423,283 4,006,480 3,583,197 96.2% Fund Balance, Beginning of Year 2,592,355 3,564,979 3,988,262 423,283 11.9% Fund Balance, End of Year 3,564,979 3,988,262 7,994,742 4,006,480 100.5% Fund Description This fund accounts for the development impact fees received as a result of development activity within the City. The fees are primarily used to fund Capital Improvement Projects designed to mitigate the impacts of development projects. Analysis/Comments Development Impact Fee revenue vary from year-to-year depending on the level of development activity occurring within the City. A major housing development (Sommer's Bend) is underway and is expected to generate a large influx of DIF revenue in FY2022-23. Expenditures of DIF reflect the transfer to the Capital Improvement Program to fund the projects necessary to mitigate the impacts of development. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 97 125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Taxes and Franchises PEG FEES 215,696 220,207 200,000 (20,207)-9.2% Use of Money and Property INVESTMENT INTEREST 1,277 3,300 3,300 -0.0% Revenues/Other Sources 216,973 223,507 203,300 (20,207)-9.0% Expenditures by Category CAPITAL OUTLAY 21,122 265,000 135,000 (130,000)-49.1% Expenditures/Other Financing Uses 21,122 265,000 135,000 (130,000)-49.1% Net Revenues 195,851 (41,493)68,300 109,793 -30.7% Fund Balance, Beginning of Year 427,810 623,661 582,168 (41,493)-6.7% Fund Balance, End of Year 623,661 582,168 650,468 68,300 11.7% Fund Description This fund was established to account for Public Education and Government (PEG) fees. Fees received from local cable operators for the sole purpose of supporting the access facilities and activities within the City. Analysis/Comments PEG revenue is anticipated to decline due to the shift of cable subscribers to alternative streaming services. Expenditures reflect the investment in updating the broadcast equipment used to manage the content and broadcast of the City's public television channel. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 98 140 - COMMUNITY DEV BLOCK GRANT FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Intergovernmental Revenues CDBG - CV GRANTS -329,000 -(329,000)-100.0% CDBG - CV2 GRANTS -836,934 630,894 (206,040)-24.6% COMMUNITY DEVELOPMENT BLOCK GRANT 63,909 1,951,752 575,000 (1,376,752)-70.5% Operating Transfers In OPERATING TRANSFERS IN 412,056 ---0.0% Revenues/Other Sources 475,965 3,117,686 1,205,894 (1,911,792)-61.3% Expenditures by Category SALARIES & BENEFITS 106,706 35,039 36,836 1,798 5.1% OPERATIONS & MAINTENANCE 464,058 1,066,710 210,732 (855,977)-80.2% TRANSFERS 124,248 1,334,971 323,660 (1,011,311)-75.8% Expenditures/Other Financing Uses 695,013 2,436,719 571,228 (1,865,491)-76.6% Net Revenues (219,048)680,967 634,666 (46,301)-68.0% Fund Balance, Beginning of Year (63,909)(282,957)398,010 680,967 240.7% Fund Balance, End of Year (282,957)398,010 1,032,675 634,666 159.5% Fund Description This fund was established to account for grants received from the U.S. Department of Housing and Urban Development (HUD). The grants are used for the redevelopment of a viable community by providing decent housing, a suitable living environment, and for expanding opportunities, principally for persons of low and moderate income. Analysis/Comments CDBG revenue is projected to be $1,205,894, which reflects the reimbursement for operations and Capital projects expected to be completed during the fiscal year plus prior year carry-over of CDBG-CV funds totaling $630,894 intended to provide aid to the community in response to the COVID-19 pandemic. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 99 145 - TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 573 1,500 -(1,500)-100.0% Reimbursements OTHER REIMBURSEMENTS 640,755 ---0.0% Revenues/Other Sources 641,328 1,500 -(1,500)-100.0% Expenditures by Category TRANSFERS -600,000 98,929 (501,071)-83.5% Expenditures/Other Financing Uses -600,000 98,929 (501,071)-83.5% Net Revenues 641,328 (598,500)(98,929)499,571 -83.6% Fund Balance, Beginning of Year 198,410 839,738 241,238 (598,500)-71.3% Fund Balance, End of Year 839,738 241,238 142,309 (98,929)-41.0% Fund Description This fund was established to capture energy efficiency rebates and reimbursements as well as expenditure savings resulting from energy efficiency projects completed at various City facilities. Revenue collected in this fund will be utilized on future energy efficiency projects. Analysis/Comments TEAM Fund actual revenue in Fiscal Year 2020-21 reflect a significant rebate check from the acquisition of the streetlight network. Expenditures reflect the transfer of funds to the Capital Improvement Program to fund an Electric Vehicle Charging Station project, lighting along Murrieta Creek and Sports Park Lighting upgrades. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 100 150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST (55)315 315 -0.0% Intergovernmental Revenues AB2766 MOTOR VEHICLE SUBVENTION 146,208 146,915 150,174 3,259 2.2% Revenues/Other Sources 146,153 147,230 150,489 3,259 2.2% Expenditures by Category OPERATIONS & MAINTENANCE -20,404 10,000 (10,404)-51.0% TRANSFERS (10,934)217,634 216,955 (679)-0.3% Expenditures/Other Financing Uses (10,934)238,038 226,955 (11,083)-4.7% Net Revenues 157,087 (90,808)(76,466)14,342 -2.0% Fund Balance, Beginning of Year 15,214 172,301 81,493 (90,808)-52.7% Fund Balance, End of Year 172,301 81,493 5,027 (76,466)-93.8% Fund Description This fund was established to account for subvention funds that are used to implement programs and projects that reduce air pollution from motor vehicles. AB2766 Funds are derived from a Motor Vehicle Registration fee surcharge. Local governments are allocated $1.60 for every eligible vehicle registered within the South Coast Air Quality Management District. Funds are disbursed based on the City's population as a percentage of the total population within the District. This fund is used for Capital projects and the City's share of WRCOG's Clean Cities Coalition. Analysis/Comments AB2766 revenue is projected to increase by 2.2%. Expenditures are allocated to fund the Clean Cities Coalition ($10,000) and the remainder is transferred to the Capital Improvement Program to provide funding for the Bike Lane and Trail Program. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 101 160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 350 665 665 -0.0% Intergovernmental Revenues SLESF GRANT 365,455 279,185 280,000 815 0.3% Revenues/Other Sources 365,806 279,850 280,665 815 0.3% Expenditures by Category TRANSFERS 279,185 279,850 367,286 87,436 31.2% Expenditures/Other Financing Uses 279,185 279,850 367,286 87,436 31.2% Net Revenues 86,621 -(86,621)(86,621)15.8% Fund Balance, Beginning of Year -86,621 86,621 -0.0% Fund Balance, End of Year 86,621 86,621 -(86,621)-100.0% Fund Description This fund was established to account for the Supplemental Law Enforcement Services grant monies from the State of California which are provided to assist cities in delivering front line law enforcement services. These monies supplement existing services and may not be used to supplant any existing funding for law enforcement services provided by the City. Analysis/Comments Supplemental Law Enforcement Services (SLESF) revenues are projected remain flat for FY22-23. Expenditures reflect the transfer of these funds to the General Fund to supplement the Police budget. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 102 161 - TEMECULA MAJOR CRIMES REWARD FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 83 200 -(200)-100.0% Revenues/Other Sources 83 200 -(200)-100.0% Expenditures by Category TRANSFERS -27,407 -(27,407)-100.0% Expenditures/Other Financing Uses -27,407 -(27,407)-100.0% Net Revenues 83 (27,207)-27,207 -100.0% Fund Balance, Beginning of Year 27,124 27,207 -(27,207)-100.0% Fund Balance, End of Year 27,207 ---0.0% Fund Description This fund was established to account for a reward for information that leads to the capture and conviction of the person(s) responsible for the murder of Larry Robinson and Justin Triplett. The General Fund contributed $25,000 and the public can also contribute to this fund. The fund was established in accordance with Resolution Nos. 13-25 and 15-37. In April of 2018, Council adopted Resolution No. 18-24 for the continuation of the reward for an additional three years (to March 22, 2021) to assist the Sheriff in the investigation since no person has been arrested for the Larry Robinson murder. Analysis/Comments The time allowed for the reward for these two crimes has elapsed, therefore the funds were transferred back to the General Fund in accordance with the Resolutions establishing the reward programs. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 103 165 - AFFORDABLE HOUSING FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Taxes and Franchises REDEVELOPMENT PROPERTY TAX FUND DISTRIBUTION -1,301,719 557,000 (744,719)-57.2% Use of Money and Property LEASE/RENTAL INCOME 84,019 ---0.0% OTHER 3,000 10,327,424 -(10,327,424)-100.0% INVESTMENT INTEREST 5,883 14,000 14,000 -0.0% Intergovernmental Revenues AGENCY TRUST CONTRIBUTION 250,000 250,000 250,000 -0.0% Miscellaneous MISCELLANEOUS 38,869 ---0.0% Revenues/Other Sources 381,771 11,893,143 821,000 (11,072,143)-93.1% Expenditures by Category SALARIES & BENEFITS 225,918 244,801 233,329 (11,472)-4.7% OPERATIONS & MAINTENANCE 23,379 159,185 282,798 123,613 77.7% INTERNAL SERVICE FUND ALLOCATIONS 35,267 33,133 37,802 4,669 14.1% TRANSFERS -11,629,143 557,000 (11,072,143)-95.2% Expenditures/Other Financing Uses 284,564 12,066,262 1,110,929 (10,955,333)-90.8% Net Revenues 97,207 (173,119)(289,929)(116,810)-91.9% Fund Balance, Beginning of Year 11,957,411 12,054,618 11,881,500 (173,119)-1.4% Fund Balance, End of Year 12,054,618 11,881,500 11,591,571 (289,929)-2.4% Fund Description The Affordable Housing fund contains the assets as well as loan and rental income which have been transferred to the City of Temecula from the former Redevelopment Agency . Analysis/Comments Affordable Housing revenue is projected to decrease due to a large transfer in the prior year of $10.3 million to fund Affordable Housing projects. Expenditures are decreasing due to the timing of expenditures on Affordable Housing projects funded through the Capital Improvement Program. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 104 170 - MEASURE A FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 20,949 53,500 53,500 -0.0% Intergovernmental Revenues MEASURE A 3,969,257 4,167,720 3,227,000 (940,720)-22.6% Revenues/Other Sources 3,990,206 4,221,220 3,280,500 (940,720)-22.3% Expenditures by Category OPERATIONS & MAINTENANCE 2,157,646 2,612,630 2,883,499 270,870 10.4% TRANSFERS 143,600 7,575,889 2,575,000 (5,000,889)-66.0% Expenditures/Other Financing Uses 2,301,246 10,188,519 5,458,499 (4,730,019)-46.4% Net Revenues 1,688,960 (5,967,299)(2,177,999)3,789,300 -39.4% Fund Balance, Beginning of Year 7,741,676 9,430,636 3,463,337 (5,967,299)-63.3% Fund Balance, End of Year 9,430,636 3,463,337 1,285,338 (2,177,999)-62.9% Fund Description This fund was established to account for the City's allocation of the County of Riverside's additional one-half percent sales tax for transportation. These monies are restricted for use on local streets. In 2002, Measure A was extended by Riverside County voters. Measure A will continue to fund transportation improvements through 2039. Analysis/Comments Measure A revenue is projected to decrease by 22.3%, per the revenue projections provided by the Riverside County Transportation Commission (RCTC). Expenditures support the Public Works department in the maintenance of streets and roads, and reflect a transfer to the Capital Improvement Program to primarily fund the Pavement Rehabilitation Program. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 105 198 - PUBLIC ART FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges PUBLIC ART 34,281 64,188 17,850 (46,338)-72.2% Use of Money and Property INVESTMENT INTEREST 186 500 500 -0.0% Revenues/Other Sources 34,467 64,688 18,350 (46,338)-71.6% Expenditures by Category OPERATIONS & MAINTENANCE --30,000 30,000 100.0% Expenditures/Other Financing Uses --30,000 30,000 100.0% Net Revenues 34,467 64,688 (11,650)(76,338)-25.3% Fund Balance, Beginning of Year 56,632 91,099 155,787 64,688 71.0% Fund Balance, End of Year 91,099 155,787 144,137 (11,650)-7.5% Fund Description This fund was established pursuant to Temecula Municipal Code Section 5.08.040, whereby the fund serves a a depository for the fees paid in lieu of art as well as monetary donations for public art. The Public Art In Lieu fee is one-tenth of one percent of an eligible development project in excess of $100,000. Eligble uses of this fund include the design, acquisition, installation, improvement, maintenance and insurance of public artwork; offering of performing arts programs on City property for the community; and art education programs on City property for the community. Analysis/Comments The Public Art Fund revenue fluctuates each year along with development activity. A large development is underway and expected to generate an increase in Public Art revenue for Fiscal Year 21-22, explaining the 71.6% decline in Fiscal Year 2022-23. Expenditures will be programmed in the future as projects/programs are identified. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 106 395 - 2018 FINANCING LEASE (CIVIC CENTER) FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Operating Transfers In OPERATING TRANSFERS IN 2,077,767 1,962,107 1,603,835 (358,272)-18.3% Revenues/Other Sources 2,077,767 1,962,107 1,603,835 (358,272)-18.3% Expenditures by Category OPERATIONS & MAINTENANCE 2,077,767 1,962,107 1,603,835 (358,272)-18.3% Expenditures/Other Financing Uses 2,077,767 1,962,107 1,603,835 (358,272)-18.3% Net Revenues -----18.3% Fund Balance, Beginning of Year ----100.0% Fund Balance, End of Year ----0.0% Fund Description This fund was established to account for the payment of interest and principal of the refunding of the 2001 and 2008 Certificates of Participation (COPs). The 2001 COPs were originally issued to finance the construction of the Community Recreation Center and the 2008 COPs were originally issued to finance the construction of the Civic Center. In Fiscal Year 2018-19, the terms of the lease were refinanced, lowering the interest rate from 3.75% to 3.42%. The term of the lease expires September 1, 2033. Analysis/Comments The Financing Lease revenue reflects a transfer in from the General Fund to cover the costs of the Lease payments related to the Civic Center. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 107 396 - 2018 FINANCING LEASE (MRC) FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Operating Transfers In OPERATING TRANSFERS IN 555,808 555,808 555,807 (1)0.0% Revenues/Other Sources 555,808 555,808 555,807 (1)0.0% Expenditures by Category OPERATIONS & MAINTENANCE 555,808 555,808 555,807 (1)0.0% Expenditures/Other Financing Uses 555,808 555,808 555,807 (1)0.0% Net Revenues ----0.0% Fund Balance, Beginning of Year ----100.0% Fund Balance, End of Year ----0.0% Fund Description This fund was established to account for the payments of interest and principal related to the financing of the rehabilitation of the Margarita Recreation Center (MRC). The Lease Agreement, dated August 1, 2018, generated $6.5 million in proceeds at an interest rate of 3.42%. The Term of the lease expires September 1, 2033, Analysis/Comments The Financing Lease revenue reflects a transfer in from the General Fund to cover the costs of the Lease payments associated with the renovation of the Margarita Recreation Center. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 108 TEMECULA COMMUNITY SERVICES DISTRICT SUMMARIES CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 The Temecula Community Services District (TCSD) was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs, community and human services and special events activities aimed at enhancing the high quality of life of our youth, teens, adults, seniors and special needs population. The District also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, emergency dirt road maintenance, library services and an intern fellowship program. 109 REVENUE BY SOURCE 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Taxes and Franchises SPECIAL TAX (MEASURE C)1,892,962 1,872,625 1,891,352 18,727 1.0% Licenses, Permits and Service Charges AQUATICS 151,008 109,912 132,912 23,000 20.9% SPORTS LEAGUES & TOURNAMENTS 43,057 152,205 156,305 4,100 2.7% DEVELOPMENT IMPACT FEES 10 -500 500 100.0% CONTRACT CLASSES 192,941 700,000 800,000 100,000 14.3% CLASSES/ACTIVITIES 41,700 27,262 39,162 11,900 43.7% FACILITY RENTALS 141,961 225,457 251,457 26,000 11.5% MUSEUM ADMISSIONS 5,270 94,212 97,612 3,400 3.6% THEATER ADMISSIONS 743 233,000 246,000 13,000 5.6% DAY CAMPS 75,437 59,540 79,540 20,000 33.6% Fines and Forfeitures FINES & FORFEITURES -50 -(50)-100.0% Use of Money and Property INVESTMENT INTEREST 2,351 600 -(600)-100.0% Reimbursements OTHER REIMBURSEMENTS 97,281 247,307 83,000 (164,307)-66.4% Operating Transfers In OPERATING TRANSFERS IN --1,000,000 1,000,000 100.0% CONTRIBUTION FROM MEASURE S 7,897,243 10,002,131 11,784,280 1,782,149 17.8% Miscellaneous MISCELLANEOUS (6,356)52,860 59,560 6,700 12.7% Total Revenues and Other Sources 10,535,608 13,777,161 16,621,680 2,844,519 20.6% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 110 REVENUE DETAIL 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Fund 190 Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease 180 - OPERATIONS 4004 SPECIAL TAX (MEASURE C)512,619 507,508 1,891,352 1,383,844 272.7% 4065 INVESTMENT INTEREST 6,126 600 -(600)-100.0% 4070 CASH OVER & SHORT (30)---0.0% 4076 REIMBURSEMENTS 370 ---0.0% 4089 OPERATING TRANSFER IN MEASURE S 7,897,243 10,002,131 11,784,280 1,782,149 17.8% 4387 FILMING LOCATION AGREEMENT FEE 120 80 80 -0.0% 181 - TCSD - SENIOR CENTER 4004 SPECIAL TAX (MEASURE C)56,788 56,111 -(56,111)-100.0% 4076 REIMBURSEMENTS -160,000 -(160,000)-100.0% 4980 CLASSES/ACTIVITIES -500 250 (250)-50.0% 4983 TRANSPORTATION -1,000 1,500 500 50.0% 4986 EXCURSIONS -500 500 -0.0% 4990 INDOOR RENTALS (288)506 506 -0.0% 182 - TCSD - COMMUNITY RECREATION CENTER 4004 SPECIAL TAX (MEASURE C)157,683 155,902 -(155,902)-100.0% 4966 OPEN GYM RESIDENT/NONRESIDENT -2,776 2,776 -0.0% 4984 DAY CAMP 75,437 59,540 79,540 20,000 33.6% 4989 PICNIC SHELTER RENTALS 4,112 ---0.0% 4990 INDOOR RENTALS (1,391)3,901 3,901 -0.0% 4992 SPECIAL EVENTS 3,308 7,040 9,040 2,000 28.4% 4998 SKATE PARK -636 1,236 600 94.3% 183 - TCSD - SPECIAL EVENTS 4004 SPECIAL TAX (MEASURE C)185,699 183,689 -(183,689)-100.0% 4161 SPECIAL EVENT PERMITS 500 700 1,800 1,100 157.1% 4992 SPECIAL EVENTS (19,832)40,000 43,000 3,000 7.5% 184 - TCSD - TEMECULA COMMUNITY CENTER 4004 SPECIAL TAX (MEASURE C)59,628 58,961 -(58,961)-100.0% 4921 INDOOR RENTALS - CONFERENCE CENTER 525 2,000 4,000 2,000 100.0% 4989 PICNIC SHELTER RENTALS -15,000 15,000 -0.0% 4990 INDOOR RENTALS (1,872)12,000 18,000 6,000 50.0% 185 - TCSD - MUSEUM AND CULTURAL ARTS 4004 SPECIAL TAX (MEASURE C)68,524 67,708 -(67,708)-100.0% 4051 CIP - DIF-OPEN SPACE AND TRAILS 10 -500 500 100.0% 4076 REIMBURSEMENTS 4,700 ---0.0% 4088 DONATIONS --500 500 100.0% 4951 TOURS -612 612 -0.0% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 111 REVENUE DETAIL 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Fund 190 Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease 4953 FIELD TRIPS -150 500 350 233.3% 4980 CLASSES/ACTIVITIES -412 412 -0.0% 4990 INDOOR RENTALS 2,665 -2,500 2,500 100.0% 4991 ADMISSIONS 5,114 13,600 15,000 1,400 10.3% 186 - TCSD - AQUATICS 4004 SPECIAL TAX (MEASURE C)183,618 181,713 -(181,713)-100.0% 4970 SWIM LESSONS 94,419 59,160 79,160 20,000 33.8% 4971 LAP SWIM 37,126 30,000 30,000 -0.0% 4972 PUBLIC SWIM 11,356 16,436 19,436 3,000 18.3% 4973 FAMILY NIGHT SWIM -816 816 -0.0% 4974 POOL RENTALS 35,495 15,800 15,800 -0.0% 4976 NON RESIDENT SWIM 8,107 3,500 3,500 -0.0% 4980 CLASSES/ACTIVITIES 41,200 23,500 33,500 10,000 42.6% 187 - TCSD - SPORTS 4004 SPECIAL TAX (MEASURE C)53,191 52,564 -(52,564)-100.0% 4959 ADULT BASKETBALL LEAGUE -5,423 5,423 -0.0% 4960 ADULT SOFTBALL 21,120 48,860 48,860 -0.0% 4962 HOCKEY 9,777 18,750 18,750 -0.0% 4963 TOURNAMENTS 7,480 67,000 67,000 -0.0% 4965 YOUTH LEAGUES - NON RESIDENT 4,680 8,760 12,260 3,500 40.0% 4988 FIELD RENTALS/LIGHTS 100,516 101,250 111,250 10,000 9.9% 4997 CONCESSIONS 8,263 ---0.0% 188 - TCSD - CHILDRENS MUSEUM 4004 SPECIAL TAX (MEASURE C)12,494 12,398 -(12,398)-100.0% 189 - TCSD - COMMUNITY THEATER 4004 SPECIAL TAX (MEASURE C)204,062 201,925 -(201,925)-100.0% 4901 FRONT OF HOUSE FEES -5,000 7,000 2,000 40.0% 4906 THEATER-STAGEHAND LABOR REIMB.-88,000 91,000 3,000 3.4% 4907 THEATER-TICKET SERVICES REIMB.680 30,000 33,000 3,000 10.0% 4910 THEATER-TEMECULA PRESENTS 63 110,000 115,000 5,000 4.5% 4990 INDOOR RENTALS 2,199 55,000 58,000 3,000 5.5% 4991 ADMISSIONS 157 80,000 82,000 2,000 2.5% 4997 CONCESSIONS 1,200 2,750 2,750 -0.0% 4999 THEATER-EQUIPMENT RENTALS -20,000 22,500 2,500 12.5% 190 - TCSD - CULTURAL ARTS 4004 SPECIAL TAX (MEASURE C)32,369 32,002 -(32,002)-100.0% 4992 SPECIAL EVENTS 570 990 1,190 200 20.2% 194 - TCSD- HUMAN SERVICES 4004 SPECIAL TAX (MEASURE C)28,962 28,640 -(28,640)-100.0% 4076 REIMBURSEMENTS 17,211 12,307 8,000 (4,307)-35.0% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 112 REVENUE DETAIL 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Fund 190 Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease 4980 CLASSES/ACTIVITIES -500 700 200 40.0% 4992 SPECIAL EVENTS -1,000 2,000 1,000 100.0% 4995 HIGH HOPES 16 1,000 1,000 -0.0% 195 - TCSD-MARGARITA RECREATION CENTER 4004 SPECIAL TAX (MEASURE C)40,698 40,183 -(40,183)-100.0% 196 - TCSD-JEFFERSON RECREATION CENTER 4004 SPECIAL TAX (MEASURE C)8,707 8,596 -(8,596)-100.0% 197 - TCSD-CONTRACT CLASSES 4004 SPECIAL TAX (MEASURE C)133,454 132,054 -(132,054)-100.0% 4982 CONTRACTED CLASSES 192,941 700,000 800,000 100,000 14.3% 198 - TCSD-PARK RANGERS 4004 SPECIAL TAX (MEASURE C)65,307 64,558 -(64,558)-100.0% 4257 PARK RANGER CITATIONS -50 -(50)-100.0% 201 - TCSD-RESPONSIBLE COMPASSION 4004 SPECIAL TAX (MEASURE C)89,157 88,113 -(88,113)-100.0% 4076 REIMBURSEMENTS 75,000 75,000 75,000 -0.0% 4090 OPERATING TRANSFERS IN --1,000,000 1,000,000 100.0% 199 - NON-DEPARTMENTAL 4545 GASB 31 - FMV ON INVESTMENTS (3,746)---0.0% TOTAL TEMECULA COMMUNITY SERVICES DISTRICT FUND 10,535,608 13,777,161 16,621,680 2,844,519 20.6% City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 113 2020-2021 Actuals 2021-2022 Current Budget Increase/ (Decrease) % Increase/ Decrease 4090 - 815,413 (415,413) -50.9% - 815,413 (415,413) -50.9% 4005 648,259 640,767 - 0.0% 4065 2,090 1,378 - 0.0% 4089 73,168 - - 0.0% 4545 (1,427) - - 0.0% 722,090 642,145 - 0.0% 4005 8,664,212 8,633,354 817,267 9.5% 4058 - 23,000 (23,000) -100.0% 4065 3,082 1,500 - 0.0% 4096 5,000 18,500 135,429 732.0% 4545 (732) - - 0.0% 8,671,561 8,676,354 929,696 10.7% 4005 5,878 - 5,532 100.0% 4065 179 - - 0.0% 4076 7,050 - - 0.0% 4545 (103) - - 0.0% 13,004 - 5,532 100.0% 4005 257,591 249,197 2,494 1.0% 4007 5,626 4,200 - 0.0% 4062 390 - - 0.0% 4065 2,715 2,650 - 0.0% 4545 (1,442) - - 0.0% 264,880 256,047 2,494 1.0% 4065 2,575 3,000 - 0.0% 4071 4,546 16,000 - 0.0% 4079 2,720 6,419 - 0.0% 4089 847,181 947,149 28,414 3.0% 4271 19 - - 0.0% 4274 (1,152) 8,120 - 0.0% 4545 (1,589) - - 0.0% 854,302 980,688 28,414 2.9% 195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND ASSESSMENTS 5,532 INVESTMENT INTEREST - TOTAL TCSD SERVICE LEVEL "R" STREET/ROAD MAINT 5,532 REIMBURSEMENTS - GASB 31 - FMV ON INVESTMENTS - 194 - TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND ASSESSMENTS 9,450,621 MISCELLANEOUS - GASB 31 - FMV ON INVESTMENTS - TOTAL TCSD SERVICE LEVEL "D" REFUSE/RECYCLING 9,606,050 INVESTMENT INTEREST 1,500 RECYCLING PROGRAM 153,929 192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND ASSESSMENTS 640,767 INVESTMENT INTEREST 1,378 TOTAL TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 642,145 OPERATING TRANSFER IN MEASURE S - GASB 31 - FMV ON INVESTMENTS - OPERATING TRANSFERS IN 400,000 400,000 191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND TOTAL TCSD SERVICE LEVEL "B" REPLACEMENT FUND City of Temecula Fiscal Year 2022-2023 Annual Operating Budget REVENUE DETAIL TEMECULA COMMUNITY SERVICES DISTRICT Description 2022-2023 Proposed Budget 196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND ASSESSMENTS 251,691 HARVESTON LAKE BOAT REVENUE 4,200 GASB 31 - FMV ON INVESTMENTS - TOTAL TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 258,541 RECOVERY OF PRIOR YEAR EXPENSE - INVESTMENT INTEREST 2,650 197 - TEMECULA LIBRARY FUND INVESTMENT INTEREST 3,000 FINES & FEES 16,000 PRINTING & COPIES 6,419 OPERATING TRANSFER IN MEASURE S 975,563 CIP - CFD (HARVESTON)- TOTAL TEMECULA LIBRARY FUND 1,009,102 FACILITIES RENTALS 8,120 GASB 31 - FMV ON INVESTMENTS - 114 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) ALL FUNDS COMBINED Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Fund 190 - TCSD Operations 10,535,608 13,777,161 16,621,680 2,844,519 20.6% 191 - Service Level B (Streetlight Replacement)-815,413 400,000 (415,413)-50.9% 192 – Service Level B (Street Lights)722,090 642,145 642,145 -0.0% 194 – Service Level D (Refuse/Recycling)8,671,561 8,676,354 9,606,050 929,696 10.7% 195 – Service Level R (Road Maintenance)13,004 -5,532 5,532 100.0% 196 – Service Level L (Lake Park Maintenance)264,880 256,047 258,541 2,494 1.0% 197 – Temecula Public Library 854,302 980,688 1,009,102 28,414 2.9% 501-530 – Service Level C (Slope Maintenance)1,617,765 1,597,633 1,590,272 (7,361)-0.5% Total Revenues and Other Sources 22,679,210 26,745,441 30,133,322 3,387,881 12.7% Expenditures by Fund 190 - TCSD Operations 10,142,407 14,460,653 16,577,134 2,116,481 14.6% 192 – Service Level B (Street Lights)217,820 1,134,782 502,030 (632,752)-55.8% 194 – Service Level D (Refuse/Recycling)8,632,594 8,817,762 9,536,466 718,704 8.2% 195 – Service Level R (Road Maintenance)3,094 10,000 10,532 532 5.3% 196 – Service Level L (Lake Park Maintenance)273,908 314,697 301,575 (13,122)-4.2% 197 – Temecula Public Library 704,973 1,079,177 1,118,108 38,931 3.6% 501-530 – Service Level C (Slope Maintenance)1,683,095 2,056,985 1,726,156 (330,828)-16.1% Total Expenditures and Other Financial Uses 21,657,891 27,874,056 29,772,002 1,897,946 6.8% Excess of Revenues Over (Under) Expenditures 1,021,319 (1,128,615)361,320 1,489,935 9.7% Fund Balance, Beginning of Year 3,921,229 4,942,548 3,813,933 (1,128,615)-22.8% Fund Balance, End of Year 4,942,548 3,813,933 4,175,253 361,320 9.5% Fund Description The Temecula Community Services District is a separate governmental entity created to provide Parks and Recreation services as well as the maintenance of parks and facilities, residential street lights, slopes, refuse and recycling, maintenance of rural roads, lake park maintenance, and library services. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 115 Fund: 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Department OPERATIONS 8,416,449 10,510,319 13,675,712 3,165,393 30.1% SENIOR CENTER 56,500 218,617 2,756 (215,861)-98.7% COMMUNITY RECREATION CENTER 239,148 229,795 96,493 (133,302)-58.0% SPECIAL EVENTS 166,367 224,389 44,800 (179,589)-80.0% TEMECULA COMMUNITY CENTER 58,281 87,961 37,000 (50,961)-57.9% MUSEUM AND CULTURAL ARTS 81,012 82,482 20,024 (62,458)-75.7% AQUATICS 411,321 330,925 182,212 (148,713)-44.9% SPORTS 205,028 302,607 263,543 (39,064)-12.9% CHILDRENS MUSEUM 12,494 12,398 -(12,398)-100.0% COMMUNITY THEATER 208,361 592,675 411,250 (181,425)-30.6% CULTURAL ARTS 32,939 32,992 1,190 (31,802)-96.4% HUMAN SERVICES 46,189 43,447 11,700 (31,747)-73.1% MARGARITA RECREATION CENTER 40,698 40,183 -(40,183)-100.0% JEFFERSON RECREATION CENTER 8,707 8,596 -(8,596)-100.0% CONTRACT CLASSES 326,396 832,054 800,000 (32,054)-3.9% PARK RANGERS 65,307 64,608 -(64,608)-100.0% NON-DEPARTMENTAL (3,746)---0.0% RESPONSIBLE COMPASSION 164,157 163,113 1,075,000 911,887 559.1% Total Revenues and Other Sources 10,535,608 13,777,161 16,621,680 2,844,519 20.6% Expenditures by Department OPERATIONS 3,124,677 3,502,146 4,397,030 894,884 25.6% SENIOR CENTER 367,539 658,819 770,711 111,892 17.0% COMMUNITY RECREATION CENTER 841,756 1,171,007 1,503,635 332,628 28.4% SPECIAL EVENTS 686,132 1,509,087 1,510,601 1,514 0.1% TEMECULA COMMUNITY CENTER 370,333 427,633 438,105 10,472 2.4% MUSEUM AND CULTURAL ARTS 407,066 605,490 904,146 298,656 49.3% AQUATICS 1,144,079 1,325,709 1,446,591 120,882 9.1% SPORTS 197,927 455,445 752,283 296,838 65.2% CHILDRENS MUSEUM 53,555 78,834 76,679 (2,155)-2.7% COMMUNITY THEATER 1,007,658 1,532,134 1,675,416 143,282 9.4% CULTURAL ARTS 174,911 285,267 -(285,267)-100.0% HUMAN SERVICES 187,948 222,163 -(222,163)-100.0% MARGARITA RECREATION CENTER 142,539 207,393 117,827 (89,566)-43.2% JEFFERSON RECREATION CENTER 38,364 75,391 78,668 3,276 4.3% CONTRACT CLASSES 256,806 658,631 958,495 299,864 45.5% TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) OPERATIONS SUMMARY City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 116 Fund: 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Description 2020- 2021 Actuals 2021- 2022 Current Budget 2022- 2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease PARK RANGERS 516,689 550,328 (1)(550,329)-100.0% RESPONSIBLE COMPASSION 624,431 1,195,174 1,627,808 432,634 36.2% WORKFORCE DEVELOPMENT --319,138 319,138 100.0% Total Expenditures and Other Financial Uses 10,142,407 14,460,653 16,577,134 2,116,481 14.6% Excess of Revenues Over (Under) Expenditures 393,201 (683,492)44,546 728,038 17.6% Fund Balance, Beginning of Year 845,744 1,238,945 555,453 (683,492)-55.2% Fund Balance, End of Year 1,238,945 555,453 600,000 44,546 8.0% Fund Description Citywide Operations reflects the collection of the Special Tax (Measure C) charged to households for recreation programs as well as fees for classes and activities. Accounts for facility operations, maintenance, and community recreation programs. Measure C was approved by residents in 1997 at a rate of $74.44 per parcel for the purpose of maintaining the City's parks, recreation facilities, arerial street lighting and traffic signals. The Special Tax revenue is allocated equally between TCSD and the General Fund to fund both recreation programs and parks maintenance. Analysis/Comments TCSD operations were significantly impacted by the COVID-19 pandemic, with the majority of its facilities shuttered, classes and events cancelled and programs put on hold during the Statewide stay-at-home orders. It is anticipated that TCSD activities will return to pre-pandemic levels in Fiscal Year 2022-23. As such, revenue will increase along with expenditures to continue to provide the community recreational, cultural arts, sports and human service programs. Additionally, a transfer of $1 million is reflected as an Operating Transfer In from the COVID-19 Pandemic Community Reinvestment Program Fund to support homeless services. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 117 191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Operating Transfers In OPERATING TRANSFERS IN -815,413 400,000 (415,413)-50.9% Revenues/Other Sources -815,413 400,000 (415,413)-50.9% Net Revenues -815,413 400,000 (415,413)-50.9% Fund Balance, Beginning of Year -815,413 815,413 100.0% Fund Balance, End of Year -815,413 1,215,413 400,000 49.1% Fund Description This fund was established to accumulate resources for the replacement of street light equipment, poles and lightbulbs, as the City has acquired street lights from Southern California Edison. Analysis/Comments The Operating Transfer In comes from Fund 192 - Service Level B Street Lights, as excess fund balance is available to establish this replacement fund. Expenditures will be programmed on an as-needed basis, in order to maintain the newly acquired residential street lights. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 118 192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges ASSESSMENTS 648,259 640,767 640,767 -0.0% Use of Money and Property INVESTMENT INTEREST 663 1,378 1,378 -0.0% Operating Transfers In CONTRIBUTION FROM MEASURE S 73,168 ---0.0% Revenues/Other Sources 722,090 642,145 642,145 -0.0% Expenditures by Category SALARIES & BENEFITS 9,984 104 -(104)-100.0% OPERATIONS & MAINTENANCE 207,836 319,265 502,030 182,765 57.2% TRANSFERS -815,413 -(815,413)-100.0% Expenditures/Other Financing Uses 217,820 1,134,782 502,030 (632,752)-55.8% Net Revenues 504,271 (492,637)140,115 632,752 -35.6% Fund Balance, Beginning of Year 257,367 761,638 269,000 (492,637)-64.7% Fund Balance, End of Year 761,638 269,000 409,115 140,115 52.1% Fund Description Service Level B reflects the collection of benefit assessments charged to property owners. Service Level B includes only those parcels within residential subdivisions that receive residential street lighting services. This service level includes operational, administrative, maintenance and utility costs of residential street lights. Analysis/Comments With the acquisition of the residential street light network, the fund no longer requires a subsidy from Measure S. The assessment revenue is sufficient to cover the costs and establish a replacement fund for the street light network. Overtime, the assessment to Temecula residents will decrease as a result of the acquisition of the street lights and subsequent conversion to LED light bulbs. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 119 194 - TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges RECYCLING PROGRAM 5,000 18,500 153,929 135,429 732.0% ASSESSMENTS 8,664,212 8,633,354 9,450,621 817,267 9.5% Use of Money and Property INVESTMENT INTEREST 2,349 1,500 1,500 -0.0% Miscellaneous MISCELLANEOUS -23,000 -(23,000)-100.0% Revenues/Other Sources 8,671,561 8,676,354 9,606,050 929,696 10.7% Expenditures by Category SALARIES & BENEFITS 62,606 64,083 71,467 7,384 11.5% OPERATIONS & MAINTENANCE 8,569,988 8,753,679 9,464,999 711,321 8.1% Expenditures/Other Financing Uses 8,632,594 8,817,762 9,536,466 718,704 8.2% Net Revenues 38,967 (141,408)69,584 210,992 9.4% Fund Balance, Beginning of Year 147,821 186,788 45,380 (141,408)-75.7% Fund Balance, End of Year 186,788 45,380 114,964 69,584 153.3% Fund Description Service Level D Fund is used to collect benefit assessments charged to property owners for the purpose of providing refuse collection, recycling, and street sweeping throughout the City, which is provided by CR&R. In addition, Service Level D has received grants to increase recycling efforts Citywide. Analysis/Comments Service Level D expenditures are projected to increase by 10.7% primarily due to the contractually-obligated inflation tied to the Consumer Price Index and County tipping fees reflected in the Assessment revenue. Expenditures reflect the pass through of the Assessment revenue, collected through property tax bills, to CR&R for Refuse and Recycling services. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 120 195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges ASSESSMENTS 5,878 -5,532 5,532 100.0% Use of Money and Property INVESTMENT INTEREST 76 ---0.0% Reimbursements OTHER REIMBURSEMENTS 7,050 ---0.0% Revenues/Other Sources 13,004 -5,532 5,532 100.0% Expenditures by Category OPERATIONS & MAINTENANCE 3,094 10,000 10,532 532 5.3% Expenditures/Other Financing Uses 3,094 10,000 10,532 532 5.3% Net Revenues 9,910 (10,000)(5,000)5,000 60.6% Fund Balance, Beginning of Year 20,778 30,688 20,688 (10,000)-32.6% Fund Balance, End of Year 30,688 20,688 15,688 (5,000)-24.2% Fund Description Service Level R Fund reflects the operational, administrative, construction and maintenance costs for certain unpaved roads that become inaccessible after inclement weather. Zone R-1 provides service in the Nicolas/Liefer Road area. The maximum rate that can be charged for Zone R-1 for an improved parcel is $115.26 and for an unimproved parcel is $57.62. Analysis/Comments Service Level R was not assessed in Fiscal Year 2021-22, however the residents in this area have requested services again. Expenditures reflect maintenance on Leifer Road and other dirt roads in this area. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 121 196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges HARVESTON LAKE BOAT REVENUE 5,626 4,200 4,200 -0.0% ASSESSMENTS 257,591 249,197 251,691 2,494 1.0% Use of Money and Property INVESTMENT INTEREST 1,273 2,650 2,650 -0.0% Miscellaneous MISCELLANEOUS 390 ---0.0% Revenues/Other Sources 264,880 256,047 258,541 2,494 1.0% Expenditures by Category SALARIES & BENEFITS 26,921 29,093 11,459 (17,634)-60.6% OPERATIONS & MAINTENANCE 246,987 285,604 290,116 4,512 1.6% Expenditures/Other Financing Uses 273,908 314,697 301,575 (13,122)-4.2% Net Revenues (9,028)(58,650)(43,034)15,616 -1.9% Fund Balance, Beginning of Year 418,989 409,961 351,310 (58,650)-14.3% Fund Balance, End of Year 409,961 351,310 308,276 (43,034)-12.2% Fund Description Service Level L Fund reflects the benefit assessments charged to property owners for the purpose of maintaining the Harveston Lake Park. Expenditures include operational, administrative and maintenance costs. Analysis/Comments Service Level L revenue is projected to increase by 1.0%, while expenditures reflect a 4.2% decrease due to less personnel costs allocated to the maintenance of the Harveston Lake Park. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 122 197 - TEMECULA LIBRARY FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges PRINTING & COPIES 2,720 6,419 6,419 -0.0% Fines and Forfeitures FINES & FORFEITURES 4,546 16,000 16,000 -0.0% Use of Money and Property LEASE/RENTAL INCOME (1,152)8,120 8,120 -0.0% INVESTMENT INTEREST 987 3,000 3,000 -0.0% Operating Transfers In OPERATING TRANSFERS IN 19 ---0.0% CONTRIBUTION FROM MEASURE S 847,181 947,149 975,563 28,414 3.0% Revenues/Other Sources 854,302 980,688 1,009,102 28,414 2.9% Expenditures by Category SALARIES & BENEFITS 129,026 147,073 218,817 71,744 48.8% OPERATIONS & MAINTENANCE 286,383 553,603 539,648 (13,955)-2.5% INTERNAL SERVICE FUND ALLOCATIONS 289,564 378,501 359,643 (18,858)-5.0% Expenditures/Other Financing Uses 704,973 1,079,177 1,118,108 38,931 3.6% Net Revenues 149,328 (98,489)(109,006)(10,517)3.3% Fund Balance, Beginning of Year 382,653 531,981 433,492 (98,489)-18.5% Fund Balance, End of Year 531,981 433,492 324,486 (109,006)-25.1% Fund Description The Library Fund is used to account for the maintenance and operations of the Ronald H. Roberts Temecula Public Library on Pauba Road. Analysis/Comments Library revenue and expenditures levels will return to pre-pandemic levels in Fiscal Year 2022-23. Contributions from Measure S serve as the primary funding source for library operations. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 123 Funds: 501-530 SERVICE LEVEL C - LANDSCAPE / SLOPE MAINTENANCE Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges ASSESSMENTS 1,613,379 1,587,251 1,588,829 1,578 0.1% Use of Money and Property INVESTMENT INTEREST 4,386 10,382 1,443 (8,939)-86.1% Revenues/Other Sources 1,617,765 1,597,633 1,590,272 (7,361)-0.5% Expenditures by Category SALARIES & BENEFITS 102,689 108,044 -(108,044)-100.0% OPERATIONS & MAINTENANCE 1,580,406 1,586,638 1,726,156 139,519 8.8% TRANSFERS -362,303 -(362,303)-100.0% Expenditures/Other Financing Uses 1,683,095 2,056,985 1,726,156 (330,828)-16.1% Net Revenues (65,330)(459,352)(135,885)323,467 -9.3% Fund Balance, Beginning of Year 1,847,877 1,782,546 1,323,194 (459,352)-25.8% Fund Balance, End of Year 1,323,194 1,187,309 (135,885)-10.3% Fund Description Service Level C Fund reflects the collection of benefit assessments charged to property owners for the purpose of providing perimeter landscaping and slope maintenance throughout the City. Service Level C assesses only those parcels within residential subdivisions receiving TCSD perimeter landscaping and slope maintenance and are separated into 32 zones. The rate levels for Zones 6 and 29, are subject to a Consumer Price Index-Urban Consumers (CPI-U) annual inflator while all other rate levels will not increase. Zones 30-32 will not be assessed, as the property owners have elected to have the landscaping maintained by the respective Homeowner's Associations (HOAs). Analysis/Comments Service Level C Fund revenue will decrease slightly due to lower interest income. FY22-23 expenditures will decrease by 16.1% due to a reallocation of personnel and a decrease of transfers out to other funds. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 1,782,546 124 SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY SUMMARY CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 The Successor Agency to the Temecula Redevelopment Agency, known as SARDA, was established in 2012, per Assembly Bill 1x26, which dissolved all California Redevelopment Agencies. SARDA activities are limited to those necessary to pay the outstanding debts and obligations of the former Redevelopment Agency. 125 380 - SARDA DEBT SERVICE FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Taxes and Franchises REDEVELOPMENT PROPERTY TAX FUND DISTRIBUTION -6,151,844 5,895,694 (256,150)-4.2% Use of Money and Property INVESTMENT INTEREST 4,547 6,800 6,800 -0.0% Operating Transfers In OPERATING TRANSFERS IN 6,138,386 ---0.0% Revenues/Other Sources 6,142,933 6,158,644 5,902,494 (256,150)-4.2% Expenditures by Category OPERATIONS & MAINTENANCE 1,571,543 306,172 299,172 (7,000)-2.3% DEBT SERVICE - PRINCIPAL -2,445,000 2,625,000 180,000 7.4% DEBT SERVICE - INTEREST 3,152,481 3,152,481 2,975,694 (176,787)-5.6% TRANSFERS 250,000 ---0.0% Expenditures/Other Financing Uses 4,974,024 5,903,653 5,899,866 (3,787)-0.1% Net Revenues 1,168,909 254,991 2,628 (252,363)-2.2% Fund Balance, Beginning of Year (34,951,786)(33,782,877)(33,527,886)254,991 0.8% Fund Balance, End of Year (33,782,877)(33,527,886)(33,525,258)2,628 0.0% Fund Description The Successor Agency to the Redevelopment Agency (SARDA) Debt Service Fund was established to account for payment obligations of the Successor Agency as a result of the State's dissolution of Redevelopment Agencies. This is a private-purpose trust fund that is used to account for resources held and administered by the SARDA acting in a fiduciary capacity for other governments. Analysis/Comments SARDA revenue is associated with the former Redevelopment Agency's Recognized Obligation Payment Schedule (ROPS), and varies based on the obligations for each given fiscal year. Debt Service expenditures are for the 2017A and 2017B Tax Allocation Refunding Bonds. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 126 INTERNAL SERVICE FUND SUMMARIES CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 Internal Service Funds (ISFs) are used to account for the funding of goods and services provided by one department to other benefitting departments on a cost-reimbursement basis. 127 2020-2021 Actuals 2021-2022 Current Budget Increase/ (Decrease) % Increase/ Decrease 4065 7,302 8,200 - 0.0% 4176 974,037 1,174,010 343,247 29.2% 4545 (3,869) - - 0.0% 977,470 1,182,210 343,247 29.0% 4065 15,177 16,700 - 0.0% 4176 - - 437,718 100.0% 4545 (8,134) - - 0.0% 7,044 16,700 437,718 2621.1% 4065 11,610 12,100 - 0.0% 4089 500,000 500,000 - 0.0% 4176 243,310 431,965 32,480 7.5% 4545 (6,335) - - 0.0% 748,586 944,065 32,480 3.4% 4065 6,387 7,100 - 0.0% 4076 172 - - 0.0% 4089 260,000 300,000 - 0.0% 4176 4,035,562 4,887,136 725,789 14.9% 4545 (1,694) - - 0.0% 4,300,427 5,194,236 725,789 14.0% 4065 8,204 8,300 - 0.0% 4089 500,000 500,000 - 0.0% 4176 173,767 172,101 (12,101) -7.0% 4545 (4,580) - - 0.0% 677,391 680,401 (12,101) -1.8% 4065 102 105 - 0.0% 4176 261,669 389,608 (9,645) -2.5% 4545 5 - - 0.0% 261,776 389,713 (9,645) -2.5% 4065 2,246 2,600 - 0.0% 4176 32,370 34,424 (9,424) -27.4% 4545 (1,139) - - 0.0% 33,477 37,024 (9,424) -25.5% GASB 31 - FMV ON INVESTMENTS - 27,600 INVESTMENT INTEREST 2,600 CHARGES FOR SERVICES 25,000 335 - SUPPORT SERVICES REPLACEMENT FUND TOTAL SUPPORT SERVICES REPLACEMENT GASB 31 - FMV ON INVESTMENTS - TOTAL SUPPORT SERVICES FUND 380,068 330 - SUPPORT SERVICES FUND INVESTMENT INTEREST 105 CHARGES FOR SERVICES 379,963 325 - TECHNOLOGY REPLACEMENT FUND INVESTMENT INTEREST 8,300 OPERATING TRANSFER IN MEASURE S 500,000 CHARGES FOR SERVICES 160,000 GASB 31 - FMV ON INVESTMENTS - TOTAL TECHNOLOGY REPLACEMENT 668,300 320 - INFORMATION TECHNOLOGY FUND INVESTMENT INTEREST 7,100 REIMBURSEMENTS - TOTAL INFORMATION TECHNOLOGY 5,920,025 OPERATING TRANSFER IN MEASURE S 300,000 CHARGES FOR SERVICES 5,612,925 GASB 31 - FMV ON INVESTMENTS - 310 - VEHICLES AND EQUIPMENT FUND INVESTMENT INTEREST 12,100 OPERATING TRANSFER IN MEASURE S 500,000 CHARGES FOR SERVICES 464,445 GASB 31 - FMV ON INVESTMENTS - TOTAL VEHICLES AND EQUIPMENT 976,545 TOTAL WORKERS' COMPENSATION 454,418 305 - WORKERS' COMPENSATION FUND INVESTMENT INTEREST 16,700 CHARGES FOR SERVICES 437,718 GASB 31 - FMV ON INVESTMENTS - TOTAL INSURANCE FUND 1,525,457 GASB 31 - FMV ON INVESTMENTS - 300 - INSURANCE FUND INVESTMENT INTEREST 8,200 CHARGES FOR SERVICES 1,517,257 City of Temecula Fiscal Year 2022-2023 Annual Operating Budget REVENUE DETAIL INTERNAL SERVICE FUNDS Description 2022-2023 Proposed Budget 128 2020-2021 Actuals 2021-2022 Current Budget Increase/ (Decrease) % Increase/ Decrease City of Temecula Fiscal Year 2022-2023 Annual Operating Budget REVENUE DETAIL INTERNAL SERVICE FUNDS Description 2022-2023 Proposed Budget 4065 1,784 960 -0.0% 4076 29,284 --0.0% 4176 1,285,406 1,442,938 208,497 14.4% 4545 (283)--0.0% 1,316,191 1,443,898 208,497 14.4% 4002 -160,000 (160,000) -100.0% 4065 2,087 3,400 -0.0% 4089 500,000 500,000 160,000 32.0% 4176 37,228 76,009 -0.0% 4545 (1,400)--0.0% 537,915 739,409 - 0.0% 350 - FACILITY REPLACEMENT FUND CIP - MEASURE S - INVESTMENT INTEREST 3,400 TOTAL FACILITY REPLACEMENT FUND 739,409 OPERATING TRANSFER IN MEASURE S 660,000 CHARGES FOR SERVICES 76,009 GASB 31 - FMV ON INVESTMENTS - 340 - FACILITIES FUND INVESTMENT INTEREST 960 REIMBURSEMENTS - CHARGES FOR SERVICES 1,651,435 GASB 31 - FMV ON INVESTMENTS - TOTAL FACILITIES FUND 1,652,395 129 300 - INSURANCE FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 974,037 1,174,010 1,517,257 343,247 29.2% Use of Money and Property INVESTMENT INTEREST 3,433 8,200 8,200 -0.0% Revenues/Other Sources 977,470 1,182,210 1,525,457 343,247 29.0% Expenditures by Category Uncategorized Expenses (80,169)---0.0% SALARIES & BENEFITS 99,097 144,811 155,760 10,949 7.6% OPERATIONS & MAINTENANCE 877,714 1,152,464 1,361,497 209,033 18.1% Expenditures/Other Financing Uses 896,642 1,297,275 1,517,257 219,982 17.0% Net Revenues 80,828 (115,065)8,200 123,265 22.7% Fund Balance, Beginning of Year 748,090 828,918 713,853 (115,065)-13.9% Fund Balance, End of Year 828,918 713,853 722,053 8,200 1.1% Fund Description The Insurance Fund was established to account for the City's liability and property insurance costs. Fund Balance is a combination of both spendable and non spendable assets. These costs are allocated to each department based on the total number of Full Time Equivalent positions assigned to those departments. The City has a Self-Insured Retention (SIR) of $150,000 per incident, and strives to maintain a fund balance equal to three times the SIR. Analysis/Comments The Insurance Fund revenue is projected to increase to support the increased operating expenditures for Fiscal Year 2022-23. Expenditures are increasing primarily due to rising insurance premiums. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 130 305 - WORKERS' COMPENSATION FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES --437,718 437,718 100.0% Use of Money and Property INVESTMENT INTEREST 7,044 16,700 16,700 -0.0% Revenues/Other Sources 7,044 16,700 454,418 437,718 2621.1% Expenditures by Category SALARIES & BENEFITS 81,428 109,355 156,260 46,905 42.9% OPERATIONS & MAINTENANCE 263,807 260,897 314,510 53,613 20.5% Expenditures/Other Financing Uses 345,235 370,252 470,770 100,518 27.1% Net Revenues (338,192)(353,552)(16,352)337,200 139.1% Fund Balance, Beginning of Year 2,376,525 2,038,333 1,684,781 (353,552)-17.3% Fund Balance, End of Year 2,038,333 1,684,781 1,668,429 (16,352)-1.0% Fund Description The Workers' Compensation Fund was established in Fiscal Year 2014-15 as the City transitions to a self-insured status for Workers' Compensation liabilities. Departments are charged based on each position allocated on a Full Time Equivalent basis, with a cost assigned to each position based on job duties and potential for risk. The desired Net Position for this fund is $1.5 million, which represents three-times the City's Self-Insured Retention amount of $500,000. Analysis/Comments The Workers' Compensation Fund revenue reflects the Internal Service Fund allocation to department necessary to restore the desired fund balance. Expenditures are projected to increase due to rising insurance premiums and claim activity. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 131 310 - VEHICLES AND EQUIPMENT FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 243,310 431,965 464,445 32,480 7.5% Use of Money and Property INVESTMENT INTEREST 5,276 12,100 12,100 -0.0% Operating Transfers In CONTRIBUTION FROM MEASURE S 500,000 500,000 500,000 -0.0% Revenues/Other Sources 748,586 944,065 976,545 32,480 3.4% Expenditures by Category OPERATIONS & MAINTENANCE 275,623 ---0.0% CAPITAL OUTLAY -249,593 670,500 420,907 168.6% Expenditures/Other Financing Uses 275,623 249,593 670,500 420,907 168.6% Net Revenues 472,963 694,472 306,045 (388,427)38.0% Fund Balance, Beginning of Year 3,800,749 4,273,712 4,968,185 694,472 16.2% Fund Balance, End of Year 4,273,712 4,968,185 5,274,230 306,045 6.2% Fund Description The Vehicles and Equipment Fund was established to account for the depreciation of vehicles and capital equipment over their estimated useful lives, and to accumulate resources for the purchase of future replacement vehicles and equipment. Fund Balance is a combination of both spendable and non spendable assets. Departments are charged based on the replacement costs for each asset benefitting the department. Analysis/Comments The Vehicles and Equipment Fund revenue is increasing in order to support the future replacement of the City's fleet. Expenditures in Fiscal Year 2022-23 include the replacement of two Fire Medic Squads ($426,000), a Construction Dump Truck ($150,000), a pressure washer ($35,000), three arrow boards ($19,500) and a replacement vehicle for Community Development ($40,000). City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 132 320 - INFORMATION TECHNOLOGY FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 4,035,562 4,887,136 5,612,925 725,789 14.9% Use of Money and Property INVESTMENT INTEREST 4,693 7,100 7,100 -0.0% Reimbursements OTHER REIMBURSEMENTS 172 ---0.0% Operating Transfers In CONTRIBUTION FROM MEASURE S 260,000 300,000 300,000 -0.0% Revenues/Other Sources 4,300,427 5,194,236 5,920,025 725,789 14.0% Expenditures by Category SALARIES & BENEFITS 2,135,012 2,184,941 2,420,960 236,019 10.8% OPERATIONS & MAINTENANCE 1,967,566 3,164,774 3,371,645 206,872 6.5% INTERNAL SERVICE FUND ALLOCATIONS 2,660 2,660 2,660 -0.0% CAPITAL OUTLAY -40,000 115,000 75,000 187.5% Expenditures/Other Financing Uses 4,105,238 5,392,375 5,910,265 517,891 9.6% Net Revenues 195,189 (198,139)9,760 207,898 11.7% Fund Balance, Beginning of Year 1,110,473 1,305,662 1,107,524 (198,139)-15.2% Fund Balance, End of Year 1,305,662 1,107,524 1,117,284 9,760 0.9% Fund Description The Information Technology Fund was established to fund and account for computer and telephone system operating and maintenance expenses. Fund Balance is a combination of both spendable and non spendable assets. Adjustments are made to Fund Balance to include additional spendable resources available for expenditure. Departments are charged based on the number of electronic devices assigned. The Ronald H. Roberts Temecula Public Library facility is charged directly for all IT expenditures and personnel costs related to the facility. Analysis/Comments The Information Technology Fund expenditures are increasing by 9.6% due to investments in a new disaster recovery system, audio-visual equipment for City Hall conference rooms and additional workstations and iPads to support newly hired employees. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 133 325 - TECHNOLOGY REPLACEMENT FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 173,767 172,101 160,000 (12,101)-7.0% Use of Money and Property INVESTMENT INTEREST 3,624 8,300 8,300 -0.0% Operating Transfers In CONTRIBUTION FROM MEASURE S 500,000 500,000 500,000 -0.0% Revenues/Other Sources 677,391 680,401 668,300 (12,101)-1.8% Expenditures by Category OPERATIONS & MAINTENANCE 276,849 ---0.0% CAPITAL OUTLAY --160,000 160,000 100.0% TRANSFERS -763,534 -(763,534)-100.0% Expenditures/Other Financing Uses 276,849 763,534 160,000 (603,534)-79.0% Net Revenues 400,542 (83,133)508,300 591,433 -42.6% Fund Balance, Beginning of Year 1,660,004 2,060,546 1,977,413 (83,133)-4.0% Fund Balance, End of Year 2,060,546 1,977,413 2,485,713 508,300 25.7% Fund Description The Technology Replacement Fund was established in Fiscal Year 2014-15 in order to accumulate resources for computer and telephone equipment and software to fund future equipment replacement. Fund Balance is a combination of both spendable and non spendable assets. Contributions to this fund are made by departments utilizing the assets in an amount equivalent to the estimated cost to replace the item at the end of its useful life. Analysis/Comments The Technology Replacement Fund expenditures reflects the replacement of the City’s telephones ($30,000), a UPS battery ($50,000), a GIS plotter ($10,000) and fund the annual computer lifecycle replacement program ($70,000). City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 134 330 - SUPPORT SERVICES FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 261,669 389,608 379,963 (9,645)-2.5% Use of Money and Property INVESTMENT INTEREST 107 105 105 -0.0% Revenues/Other Sources 261,776 389,713 380,068 (9,645)-2.5% Expenditures by Category SALARIES & BENEFITS 198,682 239,242 253,946 14,704 6.1% OPERATIONS & MAINTENANCE 61,773 150,366 126,018 (24,348)-16.2% Expenditures/Other Financing Uses 260,455 389,608 379,963 (9,644)-2.5% Net Revenues 1,320 105 105 (1)-2.5% Fund Balance, Beginning of Year 2,704 4,024 4,130 105 2.6% Fund Balance, End of Year 4,024 4,130 4,235 105 2.5% Fund Description The Support Services Fund was established as a cost center for the City's central receptionist, duplicating, printing, and mailing activities. It is also used to depreciate all related copying and mailing equipment over their useful lives, and to accumulate resources for the purchase of future equipment. Fund Balance is a combination of both spendable and non spendable assets. Departments are charged based on a count of copies made in the previous fiscal year. Analysis/Comments The Support Services Fund revenues and expenditures are projected to decrease by 2.5%, as the operations costs are decreasing due to less repair costs on the City's copy machines. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 135 335 - SUPPORT SERVICES REPLACEMENT FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 32,370 34,424 25,000 (9,424)-27.4% Use of Money and Property INVESTMENT INTEREST 1,107 2,600 2,600 -0.0% Revenues/Other Sources 33,477 37,024 27,600 (9,424)-25.5% Expenditures by Category OPERATIONS & MAINTENANCE 50,412 ---0.0% CAPITAL OUTLAY -40,000 25,000 (15,000)-37.5% Expenditures/Other Financing Uses 50,412 40,000 25,000 (15,000)-37.5% Net Revenues (16,935)(2,976)2,600 5,576 -31.7% Fund Balance, Beginning of Year 421,259 404,324 401,348 (2,976)-0.7% Fund Balance, End of Year 404,324 401,348 403,948 2,600 0.6% Fund Description The Support Services Replacement Fund was established to accumulate resources for the future replacement of the City's duplicating equipment. Analysis/Comments The Support Services Replacement Fund expenditures include $25,000 for the replacement of the Central Services plotter and paper folder machines. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 136 340 - FACILITIES FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 1,285,406 1,442,938 1,651,435 208,497 14.4% Use of Money and Property INVESTMENT INTEREST 1,501 960 960 -0.0% Reimbursements OTHER REIMBURSEMENTS 29,284 ---0.0% Revenues/Other Sources 1,316,191 1,443,898 1,652,395 208,497 14.4% Expenditures by Category SALARIES & BENEFITS 373,638 408,751 598,277 189,526 46.4% OPERATIONS & MAINTENANCE 939,660 1,035,584 1,053,157 17,573 1.7% Expenditures/Other Financing Uses 1,313,298 1,444,335 1,651,435 207,100 14.3% Net Revenues 2,893 (437)960 1,397 14.4% Fund Balance, Beginning of Year 585,694 588,587 588,150 (437)-0.1% Fund Balance, End of Year 588,587 588,150 589,111 960 0.2% Fund Description The Facilities Fund was established to account for the cost of the Civic Center, Former City Hall Facility, City Maintenance Facility, Field Operations Center, and Civic Center Parking Structure operations and maintenance. Fund Balance is a combination of both spendable and non spendable assets. Departments are charged based on square footage allotted as well as full time staff equivalents assigned. Analysis/Comments The Facilities Fund expenditures are increasing by 14.4% due to primarily to support the operations of this fund. Operational costs are increasing to cover personnel costs associated with additional Maintenance Workers and salary adjustments. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 137 350 - FACILITY REPLACEMENT FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 37,228 76,009 76,009 -0.0% Use of Money and Property INVESTMENT INTEREST 687 3,400 3,400 -0.0% Operating Transfers In CONTRIBUTION FROM MEASURE S 500,000 660,000 660,000 -0.0% Revenues/Other Sources 537,915 739,409 739,409 -0.0% Expenditures by Category OPERATIONS & MAINTENANCE 64,323 ---0.0% CAPITAL OUTLAY -389,420 -(389,420)-100.0% TRANSFERS 712,056 729,694 500,000 (229,694)-31.5% Expenditures/Other Financing Uses 776,378 1,119,114 500,000 (619,114)-55.3% Net Revenues (238,464)(379,705)239,409 619,114 -33.3% Fund Balance, Beginning of Year 621,233 382,769 3,064 (379,705)-99.2% Fund Balance, End of Year 382,769 3,064 242,473 239,409 7812.7% Fund Description The Facility Replacement Fund was established to accumulate resources for the future replacement of equipment, systems and fixtures within City-owned facilities. Analysis/Comments The Facilities Replacement fund is augmented with a contribution from Measure S in order to accumulate resources to replace City facilities. Expenditures in Fiscal Year 2022-23 include a transfer of $500,000 to the Capital Improvement Program for the City Facilities Rehabilitation project. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 138 CAPITAL IMPROVEMENT PROGRAM SUMMARY CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 Local governments undertake capital projects to acquire, develop, improve or maintain various facilities, other infrastructure and/or equipment. These projects are generally large in scale, require significant funding and are long-term. A Capital Projects Fund is used to account for the financial resources supporting capital projects during the life of the project. 139 210 - CAPITAL IMPROVEMENT PROGRAM FUND SUMMARY Description 2020- 2021 Actuals 2021-2022 Current Budget 2022-2023 Proposed Budget Increase/ (Decrease) % Increase/ Decrease Revenues by Source Uncategorized Revenues 353,871 ---0.0% Licenses, Permits and Service Charges QUIMBY FEES -2,193,952 1,100,000 (1,093,952)-49.9% DEVELOPMENT IMPACT FEES 1,025,835 3,487,378 8,457,980 4,970,602 142.5% Use of Money and Property INVESTMENT INTEREST 75,560 ---0.0% Intergovernmental Revenues GRANTS 185,000 1,453,056 1,250,000 (203,056)-14.0% AB2766 MOTOR VEHICLE SUBVENTION -217,634 -(217,634)-100.0% Reimbursements CAPITAL IMPROVEMENT PROGRAM 4,886,857 172,406,264 18,176,156 (154,230,108)-89.5% PECHANGA IGA -5,000,000 1,150,000 (3,850,000)-77.0% OTHER REIMBURSEMENTS 1,081,255 1,122,897 7,394,210 6,271,313 558.5% Operating Transfers In OPERATING TRANSFERS IN 2,350,089 7,033,375 4,241,970 (2,791,405)-39.7% CONTRIBUTION FROM MEASURE S 5,233,125 28,886,909 14,942,089 (13,944,820)-48.3% Revenues/Other Sources 15,191,593 221,801,465 56,712,405 (165,089,060)-74.4% Expenditures by Category CIP 16,435,915 221,801,464 56,712,405 (165,089,059)-74.4% Expenditures/Other Financing Uses 16,435,915 221,801,464 56,712,405 (165,089,059)-74.4% Net Revenues (1,244,322)1 -(1)-74.4% Fund Balance, Beginning of Year 15,345,341 14,101,019 14,101,020 1 0.0% Fund Balance, End of Year 14,101,019 14,101,020 14,101,020 -0.0% Fund Description This fund was established to account for the City's Capital Improvement Program revenues and expenditures. Analysis/Comments The Capital Improvement Fund revenues and expenditures fluctuate each year as projects are identified. Many projects are programmed in their initial year and, if not completed, the funds are rolled forward to the subsequent year. City of Temecula Fiscal Year 2022-2023 Annual Operating Budget 140 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERFORMANCE MEASURES The City Council adopted the Temecula 2030 Quality of Life Master Plan (QLMP) in October 2011. The QLMP defines the strategic priorities of Temecula’s residents, leaders, and partners for the City’s next twenty years. It reflects the vision for the City’s future, and commits the City to a performance based process to accomplish those goals. This plan was developed by engaging residents, businesses, local institutions and regional partners in an inclusive process. This document is currently undergoing an update. In an effort to incorporate the QLMP into the City’s budget process, City of Temecula Executive Staff developed Goals based on the Core Values of the Quality of Life Master Plan. These goals are used by each Department to develop Performance Measures that link back to the City’s Core Values developed through the QLMP process. Click on the icons throughout the Performance Measures for more details on core values. CORE VALUES LEGEND: Healthy and Livable City Economic Prosperity A Safe and Prepared Community A Sustainable City Transportation Mobility and Connectivity Accountable and Responsive City Government 141 Proactively address traffic improvements Number of agenda items or contracts Citywide supported by City Council related to Traffic Operations for improved roadways or connections Approx 50 Approx 50 40‐50 Maintain overall sound fiscal policies to ensure long term solvency Number of City Council committee assignments 57 57 50‐60 Promote community involvement Number of public outreach messages, advisories, press releases or posts (in print or electronically) shared with the community containing City information Minimum 4 per day Minimum 4 per day Average 4 per day Promote community involvement Number of City Hall administrative inquiries responded to on behalf of City Council 822 555 500‐800 Maintain overall sound fiscal policies to ensure long term solvency Number of City Council Resolutions and Ordinances adopted to support policies for the maintenance and betterment of the community and City Governance 35 70‐80 20‐40 Maintain a safe and family oriented environment Number of nonprofit organizations funded through the Community Service funding and the City Council Grant Program 28 25‐30 25‐30 Maintain a safe and family oriented environment Total funding provided to support nonprofit programs through the Community Service Program and City Council Grant Program $125,000 $125,000 $1,125,000 Foster an "educated community" through a wide variety of opportunities Number of public outreach messages, advisories, press releases or posts (in print or electronically) shared with the community daily on various platforms or delivery methods containing City education/information 1,460 1,460 1,200‐1,600 Remain within the Federal ranking of The Top 25 Safest Cities Percentage of annual operating budget that supports fire, police, first responders, and associated infrastructure/technology, for the safety and protection of all Temecula citizens and businesses 57%Greater than 50% Greater than 50% Actively maintain and preserve City assets and infrastructure Number of agreements and contracts reviewed and signed Citywide to maintain, promote and preserve City assets/infrastructure 290‐300 275‐300 275‐300 PERFORMANCE MEASURES CITY COUNCIL CITY COUNCIL‐COMMUNITY SUPPORT CITY MANAGER FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City 142 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Maintain overall sound fiscal policies to ensure long term solvency Number of City Council Agendas developed and brought forward with policies, programs or projects supported by the City Council for the long term solvency of the City of Temecula 22 24 20‐22 Foster an "educated community" through a wide variety of opportunities Leading City efforts to attract and build higher education hub (MSJC and CSSM), measured by engagements N/A N/A 3 Create a business friendly regulatory environment Number of local business site visits, meetings and ribbon cuttings (to foster business relationships)34012 Create a business friendly regulatory environment Number of monthly programs to promote Economic Development and business growth N/A N/A 4 Promote community involvement Citywide social media post ‐ percentage increase in followers: Facebook (FB), Instagram (IG), Twitter (TW), and YouTube (YT) FB: 5% IG: 24% TWT: 3% YT: 20% FB: 5% IG: 20% TW: 5% YT: 2% FB: 10% IG: 20% TW: 5% YT: 2% Promote community involvement Citywide social media post ‐ number of posts: Facebook (FB), Instagram (IG), and Twitter (TW)N/A FB: 520 IG: 520 TW: 700 FB: 520 IG: 520 TW: 700 Promote energy efficient operations and development Percentage of electronic delivery of agenda and materials 100% 100% 100% Promote energy efficient operations and development Number of electronic WebQA requests 939 800 850 Provide transparency to the public for all government transactions Percentage of Public Records Act requests processed in statutory time period 100% 100% 100% Provide transparency to the public for all government transactions Number of annual Conflict of Interest filings for Council, Boards, Commissions, and employees 60 60 60 Provide transparency to the public for all government transactions Percentage of open meeting / Public Notices published on or before statutory time period 100% 100% 100% OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT CITY CLERK 143 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Foster an organizational structure that aligns resources with demands Percentage of positions cross‐trained for departmental coverage 100% 100% 100% Create a business friendly regulatory environment Number of business licenses issued 7,545 8,300 8,300 Create a business friendly regulatory environment Percentage of online business license renewals 51% 70% 75% Create a business friendly regulatory environment Number of invoices processed via electronic payment 1,724 4,000 4,200 Create a business friendly regulatory environment Number of vendors receiving electronic payments versus paper checks 175 300 400 Foster an organizational structure that aligns resources with demands Percentage of employees using the quarterly check‐in feature within the new online performance evaluation system 0% 100% 90% Foster an organizational structure that aligns resources with demands Average number of days from opening of recruitment to hire 84 60 60 Foster an organizational structure that aligns resources with demands Total number of seasonal employees that were successful in receiving the full hiring incentive N/A N/A 95% Foster an organizational structure that aligns resources with demands Number of employment‐related polices or guidelines created or revised 334 Foster an organizational structure that aligns resources with demands Percentage of staff trained to access the online software program for Certificates of Insurance 0% 100% 100% Foster an organizational structure that aligns resources with demands Percentage of interactive process meetings held for workers' compensation injuries for employees off work or on modified duty 0% 100% 100% FINANCE HUMAN RESOURCES‐MANAGEMENT HUMAN RESOURCES‐RISK MANAGEMENT 144 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Foster an organizational structure that aligns resources with demands Percentage of staff with work‐related job duties exposing them to the potential of Hepatits A & B, who were offered vaccinations and have received them or signed declination. N/A 10% 85% Encourage community participation In public safety and emergency preparedness Number of community outreach events conducted 5 3 5 Minimize the impact to life, property, and the environment from natural hazards and emergency situations Percentage of employees assigned to the Incident Management Team who are trained in the roles, responsibilities, and functions of the Emergency Operations Center 50% 90% 90% Minimize the impact to life, property, and the environment from natural hazards and emergency situations Number of facility evacuation program plans completed 3 3 14 Create a business friendly regulatory environment Average customer service wait times for Building and Safety transactions Less than 30 minutes Less than 30 minutes Less than 30 minutes Create a business friendly regulatory environment Average customer service wait times for Planning transactions Less than 30 minutes Less than 30 minutes Less than 30 minutes Create a business friendly regulatory environment Online public inquiry response time for Planning (excluding weekends and holidays)4 days Less than 1 day Less than 2 days Provide transparency to the public for all government transactions Percentage of applicants receiving approval letter and Conditions of Approval within 3 business days of project approval 100% 100% 100% Provide transparency to the public for all government transactions Percentage of Building Department plan checks completed within 12 business days for first submittals and within 7 business days for subsequent submittals 95% 100% 95% Provide transparency to the public for all government transactions Percentage of plan checks reviewed for Land Development by Planning completed within 15 business days for first submittals and within 10 business days for subsequent submittals 100% 100% 100% Provide transparency to the public for all government transactions Percentage of Notice of Exemption and Notice of Determination filings sent to the Riverside County Recorder within 3 business days of project approval for CEQA exempt projects 100% 100% 100% HUMAN RESOURCES‐EMERGENCY MANAGEMENT COMMUNITY DEVELOPMENT‐CURRENT PLANNING & PERMIT CENTER 145 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Provide housing for all income types In the community Number of Housing Element Programs completed 5 5 5 Connect the City through a series of trails and walkways Number of miles of bike lanes striped 2 10 5 Create a business friendly regulatory environment Online public inquiry response time for Building and Safety (excluding weekends and holidays) 4 days Less than 1 day 2 days Improve delivery of technology services to attract businesses Percentage of automated online inspection requests 0%10% automation 10% automation Improve delivery of technology services to attract businesses Percentage of online Building and Safety transactions 66.70% 10% increase 2% increase Provide transparency to the public for all government transactions Percentage of photo‐voltaic plan checks completed within 72 hours 100% 100% 100% Provide transparency to the public for all government transactions Number of workshops provided for active developers in the City 011 Foster an organizational structure that aligns resources with demands Number of inspections per person, per day 24 20 20 Foster an organizational structure that aligns resources with demands Length of time customers must wait for next available inspection 48 hours 48 hours 48 hours Maintain a safe and family oriented environment Reduction of unpermitted short term rentals 35% reduction 20% reduction 3% reduction COMMUNITY DEVELOPMENT‐LONG RANGE PLANNING COMMUNITY DEVELOPMENT‐BUILDING & SAFETY COMMUNITY DEVELOPMENT‐CODE ENFORCEMENT 146 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Create a business friendly regulatory environment Average response time of online public inquiries for Code Enforcement (excluding weekends and holidays)4 days Less than 1 day 2 days Continue to aggressively mitigate graffiti and vandalism Number of hours for turnaround time for graffiti abatement 48 48 48 Minimize the impact to life, property, and the environment from natural hazards and emergency situations Percentage of weed abatement cases successfully resolved prior to placing a lien on the property 95% 95% 95% Minimize the impact to life, property, and the environment from natural hazards and emergency situations Percentage of code cases that are resolved and closed within 3 weeks 80% 80% 80% Provide transparency to the public for all government transactions Number of brochures created for common code violations, in order to create public awareness 011 Provide housing for all income types In the community Number of agreements with an affordable housing developer for the use of available Tax Allocation Bond proceeds 111 Provide transparency to the public for all government transactions Number of objectives completed for the Five‐Year Consolidated Plan 444 Provide transparency to the public for all government transactions Number of HUD timeliness tests met 1 1 1 Provide transparency to the public for all government transactions Percentage of reports completed on time for external agencies 100% 100% 100% Provide highly functional and sustainable City facilities and infrastructure Average of business days to complete 1st plan check 10 10 10 COMMUNITY DEVELOPMENT‐ADMINISTRATION PUBLIC WORKS‐LAND DEVELOPMENT SARDA COMMUNITY DEVELOPMENT‐CDBG 147 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Provide highly functional and sustainable City facilities and infrastructure Percentage of development inspections completed within 48 hours of requested time 95 90% 90% Provide highly functional and sustainable City facilities and infrastructure Percentage of Qless appointments staff responds to within 5 minutes of scheduled time 96 90% 90% Proactively address traffic improvements Percentage of citizen requests staff responds to within 5 business days 100 90% 90% Proactively address traffic improvements Percentage of traffic call‐outs staff responds to within 2 hours to resolve traffic signal malfunctions 90 90% 90% Utilize effective traffic enforcement, monitoring and planning processes to ensure the safety of Temecula motorists Average number of business days to complete 1st plan check of traffic control plans 10 10 10 Maintain the natural beauty of the community Total number of street trees trimmed each year 1,876 2,000 2,000 Continue to aggressively mitigate graffiti and vandalism Percentage of graffiti reports completed within 24 hours 90 90% 90% Minimize the impact to life, property, and the environment from natural hazards and emergency situations Total number of storm drain inlets inspected/cleaned 1,611 500 1,600 Continue to maintain local roads and streets Total number of street signs replaced, repaired and installed 1,585 1,200 1,500 Continue to maintain local roads and streets Total sq. ft. of asphalt repairs completed each year 250,000 150,000 250,000 Continue to maintain local roads and streets Total linear feet of traffic lanes, bike lanes & curbs painted 1,800,000 2,000,000 2,000,000 PUBLIC WORKS‐TRAFFIC ENGINEERING PUBLIC WORKS‐STREET MAINTENANCE 148 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Provide transparency to the public for all government transactions Percentage of projects completed on schedule and within budget 95 95% 95% Maintain overall sound fiscal policies to ensure long term solvency Total lane miles of pavement rehabilitation projects completed each year 31 20 25 Promote energy efficient operations and development Number of facility energy efficiency upgrades performed each year 10 10 10 Provide highly functional and sustainable City facilities and infrastructure Average number of facility service order requests completed each year 855 800 900 Maintain the natural beauty of the community Number of trees trimmed in parks, slopes and medians each year 3,360 3,000 5,000 Promote energy efficient operations and development Average number of park site energy efficency lighting system converstions each year 226 Promote community involvement Average number of parks maintenance service order requests completed each year 791 600 2,000 Provide highly functional and sustainable City facilities and infrastructure Average number of City park rehabilitation and repair projects completed each year 8412 Remain within the Federal ranking of The Top 25 Safest Cities Number of management team with Advanced Incident Command System training 666 Promote community involvement Number of fingerprint “Live Scans” taken at the mall 3,636 3,250 3,750 PUBLIC WORKS‐FACILITY MAINTENANCE PUBLIC WORKS‐CAPITAL IMPROVEMENT PROGRAM PUBLIC WORKS‐PARKS MAINTENANCE POLICE‐ADMINISTRATION 149 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Maintain a safe and family oriented environment Reduce homeless numbers (Point‐in‐Time Count)Pit count under 40 Pit count under 35 Pit count under 35 Remain within the Federal ranking of The Top 25 Safest Cities Reduce property crimes Reduce by 12% Reduce by 20% Reduce by 15% Maintain a safe and family oriented environment Number of high visibility/ traffic checkpoints 10 6 8 Utilize effective traffic enforcement, monitoring and planning processes to ensure the safety of Temecula motorists Number of DUI arrests 401 425 450 Utilize effective traffic enforcement, monitoring and planning processes to ensure the safety of Temecula motorists Number of traffic collision investigations 799 650 700 Maintain a safe and family oriented environment Number of overall calls for Police service 83,347 83,500 84,333 Remain within the Federal ranking of The Top 25 Safest Cities Percentage of patrol officers maintaining 24‐hour perishable skills training 95% 100% 100% Minimize the impact to life, property, and the environment from natural hazards and emergency situations Average response time (in minutes) for priority 1 calls from the time it is dispatched to the time officers arrive 4.96 4.5 4.5 Encourage community participation In public safety and emergency preparedness Number of citizens trained in CPR, First Aid, and healthcare provider CPR, and Stop the Bleed Program 347 850 850 Encourage community participation In public safety and emergency preparedness Number of citizens trained in Community Emergency Response Team training (CERT)51 175 175 POLICE‐PATROL SERVICES FIRE‐EMERGENCY OPERATIONS POLICE‐INVESTIGATIONS/SPECIAL TEAMS POLICE‐TRAFFIC ENFORCEMENT 150 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Minimize the impact to life, property, and the environment from natural hazards and emergency situations Average response time to City emergency incidents 5 min 5 min 5 min Minimize the impact to life, property, and the environment from natural hazards and emergency situations Number of Fire Department plan reviews performed 5,015 3,500 4,000 Minimize the impact to life, property, and the environment from natural hazards and emergency situations Number of Fire Department new construction & tenant improvement inspections performed 4,273 3,500 4,000 Minimize the impact to life, property, and the environment from natural hazards and emergency situations Number of state mandated inspections 2,353 1,650 4,000 Minimize the impact to life, property, and the environment from natural hazards and emergency situations Number of annual inspections completed 4,158 3,500 4,000 Promote high quality parks and recreation programs and cultural services Number of digital media communications, including Around & About Temecuka, Park Adventure series, Alumni Project, and more 23 10 20 Promote high quality parks and recreation programs and cultural services Develop and deploy a citizen satisfaction survey instrument 50 50 50 Promote high quality parks and recreation programs and cultural services Maintain facility rentals ≥85% of availability 85% 85% 85% Foster an “educated community” through a wide variety of opportunities Maintain 75% participation rate in contract classes 75% 75% 75% Promote high quality parks and recreation programs and cultural services Monthly attendance of teen gym at the CRC 426 125 350 Promote high quality parks and recreation programs and cultural services Maintain field allocation at ≥ 90% of availability 50% 90% 90% TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)‐RECREATION FIRE‐FIRE MARSHAL TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)‐COMMUNITY SERVICES 151 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Encourage community participation In public safety and emergency preparedness Number of special needs participants provided with swim lessons and water safety programs 66 90 90 Provide signature special events and cultural opportunities New special events and/or cultural events 3 2 2 Utilize social media to keep the community informed and involved Number of Facebook contests and reels to promote City activities and to obtain more community participation 01010 Continue to promote the Temecula Valley as a destination Partnerships with local vendors to enhance patron theater experiences in Old Town with pre and post performance audience engagement techniques 0620 Utilize social media to keep the community informed and involved Number of social media posts 471 500 505 Promote community involvement Number of active volunteers at the Temecula Valley Museum 0510 Foster an "educated community" through a wide variety of opportunities Resource opportunities 20 20 24 Foster an "educated community" through a wide variety of opportunities Human Service programs for at‐risk youth 29 29 32 Promote high quality parks and recreation programs and cultural services Complete departmental initiatives or analysis 6 6 6 Foster an "educated community" through a wide variety of opportunities Collaborate with Riverside County Law Library to offer law related classes to the public 444 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)‐ADMINISTRATION TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)‐CITYWIDE EVENTS TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)‐ARTS & CULTURE TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)‐HUMAN SERVICES 152 PERFORMANCE MEASURES FY 2021‐22 Target FY 2022‐23 Target Core Value Five‐Year Long Term Goal Performance Measure FY 2020‐21 Actuals City of Temecula Fiscal Year 2022‐23 Annual Operating Budget A Safe and Prepared Community Accountable and Responsive City Government Transportation Mobility and Connectivity Economic Prosperity Healthy and Livable City A Sustainable City Foster an "educated community" through a wide variety of opportunities Computer classes provided in the technology homework center at the Temecula Public Library 12 12 12 Provide transparency to the public for all government transactions Support City Manager’s Office in Special Projects 4 4 4 Promote community involvement Number of City Council meetings supported with audiovisual services 24 24 24 Promote community involvement Number of updates to the Temecula Outreach Channel 3 and YouTube 120 100 100 Foster an organizational structure that aligns resources with demands Percentage of computers that need to be replaced in order to adhere to the Computer Lifecycle Replacement Program 15% 20% 20% Foster an organizational structure that aligns resources with demands Reduce the number of open Helpdesk tickets to an average of 75 36 40 40 Foster an organizational structure that aligns resources with demands Average number of hours to resolve Helpdesk tickets for out of service copiers 2.5 4 4 INFORMATION TECHNOLOGY (IT) INFORMATION TECHNOLOGY (IT)‐SUPPORT SERVICES 153 154 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENTAL INFORMATION The following section provides a detailed information for each Department, including the Department’s Mission, Organizational Chart, Services, Summary of Expenditures, Personnel, Prior Year Accomplishments and Objectives for the Current Fiscal Year. Each Department’s Objectives have been used to develop the operating budgets for the ensuing fiscal year. These objectives are linked to the Citywide long term goals presented in the Introduction section of the budget. The long term goals are then linked to the Core Values as identified in the City’s Quality of Life Master Plan. Each Department’s objectives are measurable and include performance measures which demonstrate the progress made in the recent fiscal years toward their objectives. General Fund Departments The General Fund serves as the City Council’s primary operating fund used to finance the majority of City services including; Public Safety, Public Works, Community Development and City Administration. Temecula Community Services District (TCSD) Departments The Temecula Community Services District (TCSD) was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs, community and human services and special events, and activities aimed at enhancing the high quality of life of our youth, teens, adults, seniors, and special needs population. The District also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, emergency dirt road maintenance, and library services. Internal Service Fund (ISF) Departments Internal Services Funds are used to account for the funding of goods and services provided by one department to another benefitting department on a cost-reimbursement basis. Departments providing internal services include Insurance, Workers’ Compensation, Vehicles and Equipment, Information Technology, Support Services, and Facilities. 155 156 CITY COUNCIL CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 157 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The City Council is elected by the citizens of Temecula to adopt laws and set overall policy decisions for the City of Temecula. The City Council gives direction to the City Manager to ensure effective and efficient operation of the City and to identify the types and levels of programs and services that will maintain and enhance Temecula’s high quality of life which is consistent with the City’s adopted Quality of Life Master Plan (QLMP) Core Values as follows: SERVICES City Council • Serves as a five-member voice on behalf of the City of Temecula as elected by the citizens. • Adopts laws and regulations that govern Temecula. • Sets City fiscal policy and provides direction to the City Manager to balance a high quality of life with fiscally sustainable decisions. • Represents the interests of the City of Temecula in local, regional, State, Federal, tribal and international affairs in addition to serving as members (or commissioners) for related agencies or organizations for the benefit of the City of Temecula. Community Support • Reviews annual funding applications from nonprofit organizations that provide services or programs to Temecula residents. • Enters into agreements to disburse financial assistance, up to $1,125,000 Citywide, to multiple selected nonprofit organizations that benefit the residents of Temecula. Organizational Chart Expenditures by Category Personnel Performance Measures 158 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ACCOMPLISHMENTS Prior fiscal year accomplishments from City Council include: City Council • Provided an enhanced level of economic resource information, outreach and assistance to citizens and businesses to support and ensure a vibrant local economic recovery within Temecula, including business grants and grants that assisted residents with mortgage and rent payments during the COVID-19 pandemic/Citywide emergency. (Retention and expansion of existing businesses; Economic Prosperity) • Continued to make public safety a top priority by maintaining strategically staffed and structured Police and Fire Departments, and equipping public safety personnel with modern technology, needed equipment, apparatus. (Remain within the federal ranking of the top 25 safest cities; A Safe and prepared Community) • Continued public outreach as a priority, engaging with citizens and businesses via social media, e-blasts, Citywide newsletters, Press Releases, the Guide to Leisure Activities, and other means of communication. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Continued to engage citizens and businesses in programs with information related to the Mayor’s theme “Temecula CARES” by creating kindness, awareness, and involving the community with simple acts of kindness as State COVID-19 public health orders are lifted and the local economy fully re-opens and more in-person interaction occurs. (Maintain a safe and family oriented environment, Healthy and Livable City) Community Support • Continued to provide financial assistance to non-profit agencies for community programs that benefit citizens of Temecula in an amount up to $125,000. (Maintain A Safe and Family Oriented Environment; Healthy and Livable City) • Funded non-profit organizations that will assist and provide service to the citizens of Temecula through Community Service Funding and City Council Grant Program. (Maintain A Safe and Family Oriented Environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 159 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget OBJECTIVES Current fiscal year objectives from City Council include: City Council • Provide an enhanced level of economic resource information, outreach and assistance to citizens and businesses to support a vibrant local economic post-pandemic recovery within Temecula, including business grants and grants to assist residents and businesses. (Retention and expansion of existing businesses; Economic Prosperity) • Continue to make public safety a top priority by maintaining strategically staffed and structured Police and Fire Departments, and equipping public safety personnel with modern technology, needed equipment, and apparatus. (Remain within the federal ranking of the top 25 safest cities; A Safe and prepared Community) • Continue public outreach as a priority, engaging with citizens and businesses via social media, e-blasts, Citywide newsletters, Press Releases, the Guide to Leisure Activities, and other means of communication. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Continue to engage citizens and businesses in programs including information related to the Mayor’s theme “Temecula SAFE” that places the City’s highest priority on public safety and shines a spotlight on the high quality of life that safeguards its private and public capital investments and protects its most precious resource: its people. (Maintain a safe and family oriented environment, Healthy and Livable City) Community Support • Continue to provide financial assistance to non-profit agencies for community programs that benefit citizens of Temecula in an amount up to $1,125,000 Citywide. (Maintain A Safe and Family Oriented Environment; Healthy and Livable City) • Fund non-profit organizations that will assist and provide service to the citizens of Temecula through Community Service Funding and City Council Grant Program. (Maintain A Safe and Family Oriented Environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 160 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART District 1 District 5 District 4 District 2 District 3 Term: 2014-2022 Term: 2018-2022 Term: 2020-2024 Term: 2020-2024 Term: 2006-2022 Mayor: 2022 Mayor Pro Tem: 2022 2016- mid-2020 Mayor: 2021 Mayor: 2018 TCSD President: 2021 TCSD President: 2022 Mayor: 2017 Mayor Pro Tem: 2021 TCSD Vice President: 2022 TCSD Vice President: 2021 Mayor: 2014 Mayor Pro Tem: 2017 TCSD Vice President: 2020 Mayor: 2009 161 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS City Council: City Council expenditures are increasing by 9.23% due to added budgets for each Commission and an overall increase in Internal Service Fund allocations. Community Support: Community Support expenditures are unchanged compared to the prior year as the level of community non- profit support will be maintained at current funding levels. 162 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 163 164 CITY MANAGER'S OFFICE CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 165 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The City Manager Department serves as the City's executive office responsible to the City Council for implementing their priorities and objectives; to effectively deliver exceptional services, projects and programs to the citizens of Temecula; providing timely and accurate dissemination of City news and information to the community; and serves as the City’s primary public liaison to all community stakeholders as well as intergovernmental relations with local, regional, State, Federal, tribal and international governments. The City Manager Department provides organizational leadership to City staff and operations, oversees the preparation and administration of a balanced annual budget, and implements all City Council policies, as guided by the Quality of Life Master Plan (QLMP). SERVICES General Administration Division • Ensures the QLMP goals and citizen priorities adopted by the City Council are achieved through Citywide strategic planning, policy implementation and budget development. • Keeps the City Council informed about City operations and important community issues that impact the City. • Implements City Council’s long-term and short-term directives. • Provides prudent leadership and clear policy direction to City executives and staff Citywide concerning organizational decisions in order to efficiently provide the highest quality of public services. Office of Public Information and Economic Development Division • Supports existing businesses and encourages their continued prosperity and growth. • Manages an ongoing marketing/branding program to attract commercial and industrial development, entrepreneurs, and innovative startups. • Administers the business incubator and resource center facility to foster new business formation and provide resources to new and existing businesses. • Works to attract new industries that bring an enhanced tax base, quality jobs, and new capital into the community. • Maintains strong relationships with educational, business, key partners (TVCC, VTV) and community leaders to continue to maximize opportunities. • Facilitates smooth processing and problem solving for local businesses and businesses looking to expand in or relocate to Temecula. • Manages and creates content for the City’s social media channels (including radio and television). • Create, plan, and produce the annual State of the City (SOTC) event and related activities. Organizational Chart Expenditures by Category Personnel Performance Measures 166 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget • Assist other departments and other public agencies with marketing, social media and branding campaigns. • Maintain strong focus on engaging the business community through site visits, meetings and ribbon cuttings. ACCOMPLISHMENTS Prior fiscal year accomplishments from the City Manager’s Office include: General Administration Division • Completed Citywide citizen satisfaction survey to assist with updating the City's Quality of Life Master Plan and General Plan. (Maintain overall sound fiscal policies to ensure long term solvency; Accountable and Responsive City Government) • Implemented fiscal policies and Council priorities, while maintaining a balanced budget. (Actively maintain and preserve City assets and infrastructure; A Sustainable City) • Developed and planned the Mayor’s State of the City address in order to provide information about the City to the local business community and citizens, and introduce and implement “Temecula CARES,” the Mayor’s yearlong theme that promotes acts of kindness Citywide. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Provided excellent governmental transparency and public outreach to citizens and businesses via social media, e-blasts, Citywide newsletters and the Guide to Leisure Activities. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) • Maintained public safety as a top priority with strategically staffed and structured Police and Fire Departments. (Remain within the federal ranking of the top 25 safest cities; A Safe and Prepared Community) Office of Public Information and Economic Development Division • Produced the 2021 Temecula Magazine. (Continue to promote the Temecula Valley as a destination; Economic Prosperity) • Created, planned, and produced the annual State of the City (SOTC) event and related activities for 2021 and 2022. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) • Created new marketing brochure for Old Town. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) • Lead and hosted the Grand Finale Innovation Month Fast Pitch Competition. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 167 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget OBJECTIVES Current fiscal year objectives from the City Manager’s Office include: General Administration Division • Update City's Quality of Life Master Plan and General Plan. (Maintain overall sound fiscal policies to ensure long term solvency; Accountable and Responsive City Government) • Implement fiscal policies and Council priorities, while maintaining a balanced budget. (Actively maintain and preserve City assets and infrastructure; A Sustainable City) • Introduce, implement and communicate the Mayor’s yearlong “Temecula Safe” theme, which spotlights Temecula’s highest priority, public safety. This is the City's strategy for success as it safeguards the City's public and private capital investments, and protects the most precious resource: its people. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Provide excellent governmental transparency and public outreach to citizens and businesses via social media, e-blasts, Citywide newsletters, and the Guide to Leisure Activities. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) • Maintain public safety as a top priority with strategically staffed and structured Police and Fire Departments. (Remain within the federal ranking of the top 25 safest cities; A Safe and Prepared Community) Office of Public Information and Economic Development Division • Create, plan, and produce the annual State of the City (SOTC) event and related activities in 2023. (Continue to promote the Temecula Valley as a destination; Economic Prosperity) • Distribute Community Reinvestment funding. (Continue to promote the Temecula Valley as a destination; Economic Prosperity) • Lead other departments in several large-scale signage branding projects (including Old Town Creek Walk, Old Town Way Finding, and Auto Dealers Way Finding). (Continue to promote the Temecula Valley as a destination; Economic Prosperity) • Launch a Citywide social media account on TikTok. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 168 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 169 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS City Manager: City Manager expenditures are decreasing by 8.04% due to a reallocation of Salary & Benefits to the Office of Public Information and Economic Development, as well as Consulting Services decreasing due to a one-time appropriation in the prior year. Office of Public Information and Economic Development: The Office of Public Information and Economic Development department-wide expenditures are increasing by 13.6% due to a combination of additional staff and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. 170 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 171 172 CITY CLERK CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 173 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The City Clerk’s office is committed to serving the needs of the citizens of our community in a neutral and ethical manner by providing equal access to open and transparent government, ensuring the integrity of the participatory process, bridging internal and external communication pathways, and enhancing the public’s trust in local government. SERVICES • Conduct regular and special general municipal elections in consolidation with the County of Riverside for the election of City Council members and local initiatives, referendums and recalls. • Administer campaign disclosure statements, conflict of interest filings, and related responsibilities for candidates, and elected and appointed officials pursuant to the Political Reform Act. • Administer public meetings, noticing, and related responsibilities for legislative body and advisory boards and commissions pursuant to the Ralph M. Brown Act. • Administer Citywide records management program and ensure public access to records pursuant to the Public Records Act. • Administer annual board and commission recruitment process for expiring terms and unscheduled vacancies pursuant to the Government Code. • Administer diversity, equity and inclusion efforts adopted in City Council initiative and support Race, Equity, Diversity and Inclusion (REDI) Commission. • Administer Citywide legislative platform working with lobbyists to monitor, track, and advocate for organizational priorities based upon community needs. ACCOMPLISHMENTS Prior fiscal year accomplishments from the City Clerk’s Office include: • Conducted the City's redistricting based on the results of the 2020 Census through a process that engages the City Council, Boards and Commissions, community stakeholders, and the public at large. (Promote community involvement; Accountable and Responsive City Government) • Implemented all three phases of the Race, Equity, Diversity and Inclusion (REDI) Initiative while continuing to support the REDI Commission. (Promote community involvement; Accountable and Responsive City Government) • Conducted a board and commission recruitment and appointment process for multiple positions and unexpected vacancies. (Promote community involvement; Accountable and Responsive City Government) • Prepared for the November 2022 election cycle for Districts 1, 3 and 5 and conduct the nomination period for the same. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 174 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget OBJECTIVES Current fiscal year objectives from the City Clerk’s Office include: • Conduct 2022 General Municipal Election for officeholders for Districts 1, 3 and 5 pursuant to newly redistricted maps. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Conduct recruitment and appointment process for multiple positions with expiring terms on the City's advisory boards and commissions. (Promote community involvement; Accountable and Responsive City Government) • Develop strategic plan outlining short-, mid- and long-term efforts identified by the City Council to increase legislative effectiveness for implementation in the next legislative cycle. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Continue development new City Council Protocol Manual through the creation, implementation and codification of various policies and procedures adopted by the City Council. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 175 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 176 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS City Clerk: City Clerk expenditures are projected to increase by 7.45% due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. Internal Service Fund Allocations are increasing due to an increase in activity in Information Technology and Facilities. 177 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 178 CITY ATTORNEY CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 179 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The mission of the City Attorney’s Office is to provide quality, timely, and cost-effective legal analysis, opinion, and advice to the City’s elected officials, departments, appointed commissions and boards on a broad range of legal, administrative, legislative, and procedural matters, including application of constitutional, statutory, administrative, and local government law. The City Attorney’s Office strives to effectively provide timely research, analysis, evaluation, and drafting of legal and other documents necessary to the accomplishment of the City’s municipal functions and goals. The City Attorney’s mission includes representation of the City in judicial, administrative, and appellate proceedings in an efficient and cost-effective manner. The City contracts with Richards, Watson & Gershon to provide City Attorney and public law services. SERVICES • Serves as legal advisor to the City Council, City Manager, and the various City departments, Commissions, Committees, and Boards. • Prepares and approves the majority of proposed City ordinances, resolutions, contracts, and other legal documents. • Represents the City of Temecula in all litigation. Organizational Chart Expenditures by Category Personnel Performance Measures 180 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 181 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS City Attorney: City Attorney expenditures are expected to increase by 5% to reflect the current trend in legal costs. 182 FINANCE CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 183 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION Primary responsibilities of the Finance Department include cash and investment management, financial reporting, coordination and preparation of the Annual Operating Budget and Capital Improvement Program, internal audit, payroll, accounts receivable, financial oversight, business licensing, purchasing and contracting, financial management of Police and Fire contracts, and administration of all City funds and accounts. SERVICES •Oversee the Citywide coordination of the City’s Annual Operating and Capital Improvement Program Budgets. •Manage and develop annual and five-year forecasts for City funds and programs, provide oversight of City’s internal controls and manage audit requirements. •Provide front-line customer service to the public and manage the issuance and renewal of business licenses for businesses operating within the City limits. •In accordance with the City's Investment Policy, manage cash and investments focusing on safety and liquidity, then yield (or return on investment). •Prepare Annual Comprehensive Financial Report, Single Audit Reports, State Reports and Quarterly Financial reports. •Process Accounts Payable, Accounts Receivable, biweekly Payroll and yearly W-2, 1098 and 1099 reporting. •Maintain and update general ledger accounts for budget preparation and financial reports. •Review all City contracts to ensure compliance with State law, Public Contract Code and the Temecula Municipal Code. •Administer the City’s purchasing process in accordance with the Temecula Municipal Code. •Administer the City’s debt obligations, including Community Facility District bonds, Tax Allocation Bonds, and the Financing Leases. •Coordinate the annual update of the rates and charges of the City’s eligible Service Levels. ACCOMPLISHMENTS Prior fiscal year accomplishments from the Finance department include: •Started the process of implementing a new Citywide financial accounting system. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Received professional association awards for the City's Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Organizational Chart Expenditures by Category Personnel Performance Measures 184 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget •Several operational efficiencies were implemented over the past year, including the use of digital workflows for routing and approving agreements, the development of new queries in the City’s financial system to create the List of Demands process, and the continued conversion of vendors paid with electronic funds transfer rather than paper, checks which reduced labor and materials costs. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Successfully refinanced Wolf Creek Community Facilities District bonds to save affected property owners approximately $135 per year in special taxes. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Provided fiscal impact analyses in support of labor negotiations. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Recommended strategy on programming of Federal American Rescue Plan Act (ARPA) fundings. (Retention and expansion of existing businesses; Economic Prosperity) •Completed all reports and audit requirements for the CARES Act funding. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Completed analysis and update of the City’s Pension Rate Stabilization Policy and identified strategy to reduce the City’s outstanding unfunded pension liability. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) OBJECTIVES Current fiscal year objectives from the Finance Department include: •Continue the implementation of the new Citywide financial accounting system. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Receive professional association awards for the City's Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Implement DocuSign for Citywide use in the development, processing and approval of agreements and contracts. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Ensure compliance reporting is filed accurately and timely for all Federal grants related to COVID-19 fiscal relief. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Continue to identify operational efficiencies within the Finance Department to utilize technology and streamline systems. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 185 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 186 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS Finance: Finance department expenditures are projected to increase by 11.14% due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. The department has also experienced an increase in Internal Service Fund allocations due to an increase in Insurance and Information Technology costs. 187 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 188 HUMAN RESOURCES, RISK AND EMERGENCY MANAGEMENT CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 189 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The Human Resources Department is dedicated to providing quality service to our internal and external customers, and specifically to the City of Temecula employees of the past, present, and future by attracting, developing, and retaining a highly qualified, diverse, positive, and productive workforce. The Human Resources staff is committed to fostering an environment of trust, objectivity, mutual respect, collaboration, innovation, open communication, safety, health, compassion, and well‐being. SERVICES Human Resources Management • Administration: Review, update, and develop policies and procedures to ensure compliance with public sector labor and employment laws and alignment with Citywide operations and objectives; prepare and monitor the department’s budget and expenditures; manage and oversee federal and state government‐mandated compliance programs including Department of Transportation (DOT) drug/alcohol testing, Department of Motor Vehicles (DMV) pull notice, Department of Justice (DOJ) LiveScan fingerprinting, and professional license/certificate verifications; maintain employee files and personnel records; and maintain the City’s Personnel System as outlined in the City’s Municipal Code. • Classification and Compensation: Conduct objective studies of classifications and labor markets to ensure City staff is appropriately classified and equitably compensated; and develop and revise classification specifications to accurately reflect required qualifications, job duties, and scope of responsibility. • Employee Benefits: Administer retirement plans, health insurance plans, and other City benefits; update and maintain employee data in Human Resource Information System (HRIS)/payroll system; interpret and apply CalPERS regulations; evaluate and address unemployment insurance claims; and administer COBRA benefits for separated employees. • Recruitment, Selection and Retention: Coordinate with department managers to conduct recruitment and testing processes for vacant positions to ensure the hiring of highly qualified individuals; evaluate recruitment and turnover trends and develop strategies to effectively staff the organization; assist with organizational restructuring and succession planning efforts; conduct new employee orientation sessions; and develop and implement retention strategies. • Organizational Development and Training: Coordinate and implement employee training programs to foster personal and professional development; and manage compliance training programs in accordance with legal requirements and best practices. Organizational Chart Expenditures by Category Personnel Performance Measures 190 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget • Employee Relations: Administer performance evaluation process and advise management on performance management issues; counsel and advice employees on personnel matters; oversee disciplinary actions and appeals; manage and resolve employee grievances; conduct employee investigations to address and resolve personnel issues; and plan and implement employee recognition programs. • Labor Relations: Meet and confer with represented employee organizations regarding wages, hours and other terms and conditions of employment; interpret and apply provisions of the City’s Personnel Rules and labor contracts; and maintain effective working relationships with employees and collective bargaining units. Risk Management • Insurance: Coordinate with the City’s insurance broker to secure lines of insurance for the City’s liability, workers’ compensation, and property coverage in excess of the City’s self‐insured retention limits. Ensure all City agreements have proper insurance certificates related to the scope of work to transfer risk exposure. • General Liability: Coordinate with third‐party administrators and legal counsel for the cost‐ effective resolution of general liability claims and lawsuits. • Workers’ Compensation: Coordinate with third‐party administrators and legal counsel to manage workers' compensation claims and facilitate the proper treatment and resolution of employee injuries and illnesses, confer with managers to provide light duty or modified duty as appropriate, and assist employees with issues related to workplace injuries and illnesses. • Employee Safety and Training: Establish and maintain a safe and healthy work environment by maintaining open lines of communication throughout the organization and providing up‐to‐date safety trainings from industry experts. Comply with established federal, state and local regulations, and implement practices that promote working safely to mitigate risk. • Claims Administration: Work in unison with Third Party Administrators to process both liability and workers’ compensation claims against the City. • Cost Recovery: Coordinate with various City departments and Third Party Administrator for the recovery of costs associated with damage to City‐owned property. • Wellness Program: Administer the City’s Employee Wellness Program with educational and interactive programs. These programs are designed to encourage employees to achieve their individual health goals while enabling employees to live their personal and professional lives in the healthiest and most productive way possible. • Risk Exposure: Administer the City’s general liability program by investigating and evaluating risk exposure and providing strategies for decreasing the City’s general liability. Organizational Chart Expenditures by Category Personnel Performance Measures 191 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Emergency Management •Program Management: Enhance public protective actions and promote domestic preparedness through a comprehensive and effective emergency management program that will adequately mitigate, prepare for, appropriately respond to, and quickly recover from natural, technological, and terrorist‐related emergencies that may impact the City of Temecula. •Training & Exercises: Increase the capability of City staff, Incident Management Team (IMT) members, and community stakeholders to effectively respond to all‐hazards event, and develop and coordinate with internal and external stakeholders in the execution of an Integrated Prepared Plan (IPP) that incorporates the training goals of the “whole community.” •Community Engagement & Outreach: Coordinate with various City agencies and volunteer groups to promote individual and family preparedness and readiness in support of department’s “Disaster Ready – Disaster Resilient” strategic goal. •Communications: Establish and maintain the equipment, hardware, and software necessary to ensure Citywide interoperability of communications systems in support of first responder agencies, volunteer groups, and emergency operations. •Emergency Operations Center: Coordinate with City departments, offices, agencies, and stakeholders in executing the functions as the hub for providing resource allocation to responding agencies during times of disaster or emergency. Serve as the central point of coordinating operational, administrative, and support needs of the City. Assist in the coordination and communication between response agencies and mutual aid coordinators during emergency response and recovery operations. •Planning: Develop and implement required plans, support plans, and hazard specific appendices that support the response operations of the City in collaboration with the County and community stakeholders utilizing an all‐hazards approach. Prioritize, scope, and implement projects that are designed to mitigate risk. Plan, train, and exercise public safety professionals to enhance their readiness to respond. ACCOMPLISHMENTS Prior fiscal year accomplishments from Human Resources, Risk and Emergency Management include: Human Resources Management •Finalized the implementation of the City's paperless performance management system for all City employees. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 192 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Risk Management •Streamlined the City’s claims management processes with Third Party Administrator to improve responsiveness and increase prompt claim administration. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Continued to develop and implement the City's Cost Recovery Program (for costs associated with damage to City‐owned property) for all affected City departments by June 2022. (Diversify the City's revenue base to ensure stability in any economic climate; Accountable and Responsive City Government) •Implemented the Interactive Process for on‐the‐job injuries. Helping supervisors and employees understand Workers’ Compensation. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Added an additional medical facility for pre‐employment screening, workers' compensation injuries and DOT testing to limit the number of working hours employees spend at medical facilities. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Prepared and executed a new agreement with a safety training vendor to provide in‐person industry standard course material to City staff, in compliance with Cal/OSHA standards. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) Emergency Management •Developed a comprehensive Citywide Emergency Management Program that will enable the City of Temecula to function effectively and efficiently as an independent and reliable organization separate from the County Emergency Management Department. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Developed a Multi‐Year Training and Exercise Plan that incorporates all City and community stakeholders into a system of training and exercises dedicated to the whole community approach, with the goal to strengthen the resiliency and response capabilities of Temecula by validating and evaluating the City's Emergency Operations Plan and the Emergency Operations Center. These events will be based on the priorities established in the document as they are aligned to the FEMA 32 Core Capabilities. (Encourage community participation in public safety and emergency preparedness; A Safe and Prepared Community) •Developed and deployed a comprehensive and collaborative Alert & Warning Program to ensure the accurate and timely dissemination of information to the community during an emergency or disaster event and build confidence that information is clear, trusted, and can be reacted to. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Enhanced the ability of the City to effectively communicate internally, regionally, and with local first responder agencies in the event of catastrophe through the completion of a functioning radio room within the Emergency Operations Center (EOC). (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 193 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget OBJECTIVES Current fiscal year objectives from Human Resources, Risk and Emergency Management include: Human Resources Management •Continue to update employment related policies and Administrative Guidelines. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Produce quarterly spotlights to educate employees on current benefit offerings, HR services, and other topics of interest. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Evaluate employee benefits and implement enhancements where possible when establishing and/or renewing benefit provider contracts. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Design and implement initiatives to enhance and maintain high job satisfaction among City employees. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Facilitate the structure, design, content and workflows in the HR module for the Munis implementation. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) Risk Management •Implement an online learning management system for all City employees by June 2023. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Continue to develop, implement, and/or update Citywide safety training programs (to prevent workplace injuries and illnesses) through June 2023, including the development and implementation of the Hearing Conservation Program under the CalOSHA standard. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continue to implement the City's Employee Wellness Program and provide information, opportunities and events for all City employees through June 2023. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Develop and implement a Hepatitis A&B Vaccination program for all exposed current City staff and new hires based on job exposure by December 2022. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Maintain the City's Cost Recovery Program (for costs associated with damage to City‐owned property) for all affected City departments through June 2023. (Diversify the City's revenue base to ensure stability in any economic climate; Accountable and Responsive City Government Organizational Chart Expenditures by Category Personnel Performance Measures 194 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Emergency Management •Develop a Citywide Mass Care and Shelter capability that will enable the City to effectively and efficiently shelter and feed residents as a result of a major evacuation or catastrophic emergency. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Enhance the ability of staff to rapidly retrieve emergency information when required through the development and implementation of the "Red Book ‐ Emergency Response Guide" program. This program will put basic emergency information in the hands of the employee without the need to login to a computer and retrieve an electronic document. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Develop multiple stand‐by agreements for Disaster Services that provide support to the City in the event of a catastrophic event that is beyond the scope of the City and local services capabilities. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continue to revise the City’s Emergency Operations Plan to ensure the most effective means of response available through the proper allocation of resources. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continue to revise the City's Local Hazard Mitigation Plan (LHMP) in accordance with published policies and procedures, and conduct a comprehensive and thorough Threat Assessment to identify the hazards with the largest impact to City infrastructure. This process will allow the City to obtain grant funding in support of anti‐terrorism hardening of facilities. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 195 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 196 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS Human Resources Management: Human Resources expenditures are projected to increase by 5.69%, due in part to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates, as well as the restoration of the staff training/education budget. Emergency Management: Emergency Management expenditures are projected to increase by 39.9%, due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. Also, as the department continues to ramp‐up, staff education and training, public safety education, special events and recognition program expenditures are projected to increase. 197 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 198 COMMUNITY DEVELOPMENT CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 199 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION Community Development is a multi-disciplinary department providing planning, development services, Community Development Block Grant (CDBG), and affordable housing to citizens, elected officials, appointed boards, commissions, and City departments. The department guarantees all development is consistent with the General Plan, Municipal Codes, and Building Codes. Community Development ensures that the goals of the community are met, with regards to health, life safety, public welfare, and neighborhood preservation. The department also conducts activities related to the winding down of redevelopment through the Successor Agency to the Temecula Redevelopment Agency. SERVICES Long Range Planning • Provide planning related analysis and recommendations to community, City staff, City Commissions and City Council for issues related to current and future development. • Provide environmental review services for future development projects. • Provide oversight, analysis, and implementation of the goals of the City’s General Plan to ensure consistency with the objectives of the City Council, the community, and economic trends as the community matures. • Conduct legislative analysis and implementation to maintain compliance with all applicable State and Federal laws. • Engage in all planning processes regarding future development of the City and region. • Conduct public outreach efforts. Current Planning and Permit Center • Provide development and environmental review services for development projects. • Provide planning related analysis and recommendations to Planning Commission and City Council for issues related to development applications. • Process building permits, including initial application, plan check, issuance, and records retention. • Guide and educate customers on building permit requirements, and the residential development code to ensure code compliance and a seamless permitting process for the applicants. Organizational Chart Expenditures by Category Personnel Performance Measures 200 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Building & Safety • Promote life, health, and fire safety standards adopted through California Building Codes. • Provide plan examinations and building inspections to applicants seeking to improve their property. • Facilitate timely and efficient plan check and permitting services for businesses, residents, and developers, allowing customers to handle development services in one convenient location. Code Enforcement • Provide commercial and residential neighborhood preservation to ensure a high-quality standard of living and sustainability in communities. • Identify substandard housing to promote life, health, and safety standards. SARDA/Housing • Administer the affordable housing compliance program to ensure compliance at all affordable housing developments monitored by the City. • Identify, negotiate, and enter into funding agreements for the construction of affordable housing units. • Administer the Successor Agency to the Temecula Redevelopment Agency to wind down the obligations of the former Temecula Redevelopment Agency. Community Development Block Grant • Administer the Community Development Block Grant (CDBG) program, which provides funding for community-based services and capital infrastructure projects. • Complete compliance and documentation requirements for U.S. Department of Housing and Urban Development (HUD). • Implement the goals of the Federal Community Development Block Grant program. Develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low and moderate-income persons. Organizational Chart Expenditures by Category Personnel Performance Measures 201 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Administration • Review all department contracts to ensure compliance with Public Contract Code and City Municipal Code and internal financial policies. • Manage department purchasing, contract administration, and procurement. • Provide support to Planning Commission and Old Town Local Review Board by managing and noticing agendas and reports. • Prepare department’s Annual Operating Budget, Capital Improvement Program, and Five Year Forecast. • Provide external agencies with quarterly, monthly, and annual development and fee reports. • Liaison to Human Resources for personnel responsibilities such as recruitment and evaluations. ACCOMPLISHMENTS Prior fiscal year accomplishments from Community Development include: Long Range Planning • Completed the adoption of Objective Design Standards. (Provide housing for all income types in the community; Healthy and Livable City) Current Planning and Permit Center • Average customer service wait times averaged under 30 minutes for Building and Safety transactions. (Create a business friendly regulatory environment; Economic Prosperity) • Average customer service wait times averaged under 30 minutes for Planning transactions. (Create a business friendly regulatory environment; Economic Prosperity) Building & Safety • More than 60% of Building and Safety transactions are done online. (Improve delivery of technology services to attract businesses; Economic Prosperity) Code Enforcement • Average customer service wait times averaged under 30 minutes for Code Enforcement transactions. (Create a business friendly regulatory environment; Economic Prosperity) • Reduced the number of unpermitted short-term rentals from approximately 36 to 24. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 202 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget SARDA/Housing • Online public inquiries for SARDA/Housing averaged a response time of less than one day (excluding weekends and holidays). (Create a business friendly regulatory environment; Economic Prosperity) Community Development Block Grant • Funded 40 rental & 40 mortgage applications for the Mortgage and Rental Assistance Program. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) Administration • Began to develop an updated management dashboard regarding department performance. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) OBJECTIVES Current fiscal year objectives from Community Development include: Long Range Planning • Complete the adoption of the City's Housing Element. (Promote community involvement; Accountable and Responsive City Government) • Complete the first phase of the Quality of Life Master Plan and General Plan Update. (Promote community involvement; Accountable and Responsive City Government) Current Planning and Permit Center • Online public inquiries for Planning will average a response time of less than one day (excluding weekends and holidays); (Create a business friendly regulatory environment; Economic Prosperity) Building & Safety • Online public inquiries for Building and Safety will average a response time of less than one day (excluding weekends and holidays). (Create a business friendly regulatory environment; Economic Prosperity) • Automated online inspection requests will account for 10% of total inspection requests. (Improve delivery of technology services to attract businesses; Economic Prosperity) • The percentage of online Building and Safety transactions will increase by 10% from pre-COVID-19 year trends. (Improve delivery of technology services to attract businesses; Economic Prosperity) Organizational Chart Expenditures by Category Personnel Performance Measures 203 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Code Enforcement • Online public inquiries for Code Enforcement will average a response time of less than one day (excluding weekends and holidays). (Create a business friendly regulatory environment; Economic Prosperity) • Unpermitted short-term rentals will be reduced by a minimum of 20%. (Maintain a safe and family oriented environment; Healthy and Livable City) SARDA/Housing • Update the SARDA/Housing internal process to better utilize technology and database tracking. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) • Enter into one funding agreement for the construction of affordable housing units. (Provide housing for all income types in the community; Healthy and Livable City) Community Development Block Grant • Update the CDBG internal process to better utilize technology and database tracking. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) Administration • Online public inquiries for Community Development will average a response time of less than one day (excluding weekends and holidays). (Create a business friendly regulatory environment; Economic Prosperity) • Complete development of an updated management dashboard regarding department performance. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 204 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 205 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS Planning: Planning expenditures are projected to increase by 20.09% due to a combination of additional staff and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. Building & Safety/Code Enforcement: The Building & Safety division expenditures are projected to increase by 19.63% due to a combination of additional staff and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. A new Building Inspector vehicle and two Code Enforcement Officer vehicles have added to the increase in Capital Outlay expenditures. Animal Control: Animal Control expenditures are projected to decrease by 9.77% due to lower debt service and shelter operations costs, as a result of the City of Menifee joining the Southwest Communities Financing Authority and sharing in the costs of operating the animal shelter. 206 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS Affordable Housing: Affordable Housing expenditures include a decrease in Transfers Out related to the funding of Capital Projects, which varies from year to year. Increases in Legal, Consulting and Outside Services reflect additional services. Salaries & Benefits are decreasing in FY22-23 due to a reallocation of personnel to other divisions within Community Development. Community Development Block Grant: CDBG expenditures include a decrease in Transfers Out associated with Capital Project funding. Operations & Maintenance costs reflect CDBG-CV grants which funding prior year assistance programs. SARDA: SARDA expenditures are unchanged compared to prior year. 207 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 208 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget 209 210 PUBLIC WORKS CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 211 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The mission of the Public Works Department is to provide quality services that support the infrastructure demands of the City of Temecula and enhance the safety, welfare and aesthetic environment of the residents, businesses and visitors. This is accomplished through the development and maintenance of City streets, sidewalks, traffic systems, bike lanes, parks, buildings, trails and drainage facilities; professional engineering oversight of public and private improvement projects; and implementation of erosion/sediment controls and storm water quality measures. SERVICES Land Development • Provide plan check and engineering review and approval of parcel maps, subdivision maps and improvement plans as required by the Subdivision Map Act. Review planning applications to enforce the implementation of proper mitigation measures, conditions and code requirements. Ensure National Pollutant Discharge Elimination System (NPDES), Federal Emergency Management Agency (FEMA) and code compliance with applicable engineering and City standards. • Provide NPDES engineering reviews, inspections and oversight for the development community to ensure proper measures are considered during the development (planning/construction) process to meet state and federal NPDES regulations and requirements. • Provide inspection oversight services for private development construction activity for all streets, drainage facilities, parks and slopes to be included within City right-of-way and maintenance areas. • Review and issue permits for encroachments into the public right-of-way including private and public capital improvement construction activities, utility installation, repair work, special events, haul routes, etc. • Review of legal descriptions for property transactions and/or right-of-way acquisition, abandonment and easement requests. • Provide community outreach and education related to pollution prevention and water quality management; specifically, to address and meet NPDES compliance standards. • Provide for the administration and management of the NPDES permit for construction activities and the Municipal Separate Storm Sewer System (MS4) permit to ensure compliance with local, state and federal mandates. Traffic Engineering • Maintain the Intelligent Transportation System (ITS) Network to provide for the efficient progression of traffic on the City’s primary corridors. Organizational Chart Expenditures by Category Personnel Performance Measures 212 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget •Conduct an effective preventative maintenance program for traffic signal and communication equipment to minimize signal equipment failures. •Review proposed development plans to ensure consistency with the City’s General Plan, Circulation Element and QLMP goals. •Review and respond to citizen requests for traffic control devices and traffic calming measures; with input from the Public/Traffic Safety Commission. •Ensure neighborhood and school areas traffic safety by providing education through the Neighborhood Traffic Calming Program. •Monitor traffic conditions and develop proactive measures to provide for the safe and efficient movement of traffic on City arterials. Capital Improvement Program •Project management and administration of all activities related to the City’s Capital Improvement Program (CIP) involving design and construction contracts for roadways, bridges, flood control and drainage improvements, parks, buildings, and other improvements. •Administration of assessment and special district design and construction projects. •Coordination with federal, state, regional and local agencies related to design and construction of CIP projects. •Application for and administration of funding and grants from federal, state, regional, and local sources for CIP projects. •Monitor regional, state, and federal transportation initiatives to ensure City transportation interests are met. •Administration of right-of-way acquisitions, including negotiations, appraisal reviews, title and escrow services, and management of right-of-way consulting services. Street Maintenance •Provide well-maintained right-of-way areas for the safety and mobility of motorists, bicyclists and pedestrians, including traffic signing and striping as directed by the Traffic Engineering Division. •Maintain City-owned storm drains, catch basins, and surface drainage facilities, and monitor illegal dump areas in support of the City’s NPDES program. •Proactively mitigate graffiti vandalism from the right-of-way and expedite transmission of relevant graffiti information to police investigators. •Respond to emergency situations and natural disasters, provide special event support and perform weed abatement and litter control. •Administer the Trees for Temecula Program to replace missing or damaged street trees within residential neighborhoods. Facility Maintenance •Administer the maintenance, repairs, and cleaning of all City-owned or leased buildings and aquatics facilities through in-house personnel and administration of outside contract services. Organizational Chart Expenditures by Category Personnel Performance Measures 213 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget •Manage scheduled inspections and license/permit requirements associated with the operation of facility fire prevention and elevator systems, kitchen equipment, emergency generators, and pool facility water quality/chemistry systems. •Respond to routine and emergency work order requests. •Provide Council Chamber and meeting set-ups at various City facilities. •Provide special event support and day porter services to ensure a safe and clean environment for all users. Parks Maintenance •Administer the ongoing maintenance, repair and cleaning of all City parks, trails, open space areas, landscaped medians and applicable slope areas. •Administer and oversee landscape water use for all City parks, landscaped medians, applicable slope areas, and recreation/administrative facility properties. •Manage the urban forest within City parks, open space areas, landscaped medians, applicable slope areas, and recreation/administrative facility properties. •Respond to routine and emergency work order requests, and provide support services for Citywide programs and special events. ACCOMPLISHMENTS Prior fiscal year accomplishments from Public Works include: Land Development •Implemented online inspection request module of EnerGov Customer Self Service (CSS) portal. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Implemented a GIS layer of all recorded instruments and documents processed through the City. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) Traffic Engineering •Completed the Highway Safety Improvement Plan (HSIP) Cycle 7 Fiber Optic Communications System Upgrade, and Cycle 9 Pedestrian Signal Equipment Upgrade projects. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) •Implemented High Visibility Pedestrian Crossing on Rancho Vista Road at Temecula Valley High School. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) Organizational Chart Expenditures by Category Personnel Performance Measures 214 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Capital Improvement Program •Began construction of Margarita Recreation Center project in Spring 2022. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) •Completed construction of traffic signal at Temecula Parkway and Wabash in Fall 2021. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) •Completed construction of the Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension project in Fall 2021. (Connect the City through a series of trails and walkways: Transportation Mobility and Connectivity) •Completed Mini Pump Tracks at Ronald Reagan Sports Park and Long Canyon Creek Park. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Completed the pavement rehabilitation of approximately 20 centerline miles of roadways throughout the City. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) Street Maintenance •Completed bi-annual Citywide street striping program to re-stripe 2,800,000 lineal feet of traffic and bike lane pavement markings. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) •Completed Citywide slurry seal of approximately 7,749,000 square feet on residential and commercial roadways. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) •Complete annual Citywide concrete repair program to repair and replace sidewalks, driveways and ADA access ramps. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) •Converted empty lots to accessible parking area at First and Front Street in Old Town. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) •Installed additional accessible sidewalks along Mercedes Street in Old Town. (Connect the City through a series of trails and walkways: Transportation Mobility and Connectivity) •Completed pavement rehabilitation of Winchester Road from Enterprise Circle S to Diaz Road. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) Facility Maintenance •Complete HVAC systems upgrades at Civic Center. (Actively maintain and preserve City assets and infrastructure; A Sustainable City) •Completed City facilities rehabilitation projects to include fencing and security gates, upgrade public restrooms with touchless controlled lavatories, replace flooring, and retrofit various facilities with LED energy efficiency lighting. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 215 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Parks Maintenance •Facilitated the design for Recycled Water Accelerated Retrofit Program for two landscaped sites. (Promote energy efficient operations and development; A Sustainable City) •Converted and installed LED sports field lighting at the Michael “Mike” Naggar Community Park. (Promote energy efficient operations and development; A Sustainable City) OBJECTIVES Current fiscal year objectives from Public Works include: Land Development •Implement CloudCompli for NPDES monitoring and investigations to keep pace with Riverside County Flood Control. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Implement DocuSign type signatures for final plans through Bluebeam signature modules. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) •Finalize street and asset inventory of Land Development facilities to be utilized in Lucity. (Provide transparency to the public for all government transactions; Accountable and Responsive City Government) Traffic Engineering •Complete delivery of the City's Citywide Fiber Optic Communications System Master Plan. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) •Complete delivery of the Highway Safety Improvement Program (HSIP) Cycle 9 Traffic Signal System Upgrade (Protective/Permissive Signal Heads). (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) Capital Improvement Program •Complete rehabilitation and renovations of the Community Recreation Center, Mary Phillips Senior Center, and Ronald Reagan Sports Park Restrooms. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) •Complete design phase for the I-15/SR79 South Enhanced Landscape Project in Summer 2022. (Maintain the natural beauty of the community; Healthy and Livable City) •Initiate the construction of the I-15/French Valley Parkway Improvements, Phase II in fall 2022. (Proactively address traffic improvements; A Safe and Prepared Community). •Complete the CRC Splash Pad & Shade Structures by spring 2023. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 216 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget • Complete the pavement rehabilitation of Ynez Road, Solana Way, Nicolas Road, Winchester Road, and Meadowview side streets by all 2022. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) Street Maintenance • Complete bi-annual Citywide street striping program to re-stripe 2,800,000 lineal feet of traffic and bike lane pavement markings. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) • Complete Citywide slurry seal of approximately 6,000,000 square feet on residential and commercial roadways. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) • Complete annual Citywide concrete repair program to repair and replace sidewalks, driveways and ADA access ramps. (Continue to maintain local roads and streets; Transportation Mobility and Connectivity) • Cleaning and inspection of MS4 system in the Wolf Creek area. (Actively maintain and preserve City assets and infrastructure; A Sustainable City) Facility Maintenance • Complete City facilities rehabilitation projects to include fencing and security gates, upgrade public restrooms with touchless controlled lavatories, replace flooring, and retrofit various facilities and parking lots with LED energy efficiency lighting. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) • Complete HVAC systems upgrades at Old Town Police Substation, and Convention/Visitors Center. (Actively maintain and preserve City assets and infrastructure; A Sustainable City) • Facilitate and complete upgrades to kitchen equipment at the Community Recreation Center. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) Parks Maintenance • Initiate RFP for community outreach and conceptual designs for the Ronald Reagan Sports Park Skate Park and Hockey Rink projects. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) • Convert and Install LED sports field lighting at Ronald Reagan Sports Park and North/South fields, and Fields 1-8. (Promote energy efficient operations and development; A Sustainable City) • Complete the renovation and replacement of playground equipment and safety surfacing at Redhawk Community Park, Long Canyon Creek Park and Temecula Creek Park. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 217 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 218 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY 219 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ANALYSIS/COMMENTS Land Development: Land Development expenditures are increasing by 5.37% due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. Public Works: Public Works division expenditures are projected to increase by 5.4% due primarily to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. Capital Outlay is decreasing due to the prior year equipment purchase of a Skid Steer w/Sweeper. Capital Improvement Program: CIP Administration expenditures are projected to increase by 18.25% due to a combination of additional staff and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates and higher Internal Service Fund Allocations from the Insurance and Information Technology departments. Parks Maintenance: Parks Maintenance expenditures are projected to increase by 17.99% due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates, the transfer of Park Attendants from Community Services to the Parks Division, and Capital Outlay requests for equipment and a vehicle. Measure A and Development Impact Fee Funds: Expenditures in these funds fluctuate each year based on the variability in the Capital Improvement Program and the projects supported by these funding sources. 220 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 221 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget 222 POLICE CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 223 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The Temecula Police Department is tasked with ensuring the safety of our community while maintaining the outstanding quality of life we all enjoy. The City contracts with the Riverside County Sheriff’s Department for Police services and maintains 112 sworn officers, 17 non-sworn officers Community Service Officers (CSOs), plus an additional 22 administrative support positions. Temecula has two centrally located Police Substations, one in Old Town Temecula at the Civic Center and one in the Promenade Mall. SERVICES Police Administration •Manage personnel and operations at two Substation locations and the Southwest Station. •Coordinate with Human Resources to ensure effective deployment of personnel. •Prepare annual budgets and ensure sufficient funds are allocated for equipment and operations. •Coordinate station logistics, ensuring tracking of all equipment, property and evidence. •Oversee law enforcement aspects of City-held special events. Investigations/Special Teams •Provide specialized enforcement related to gangs, narcotics, crime trends, vice, and quality of life issues. •Develop and implement anti-graffiti programs and operations. •Follow up on investigations initiated through patrol calls for service. •Supervise and perform compliance enforcement of sex registrants. •Develop and implement community outreach programs including crime prevention and youth education. •Prepare and perform business liaison programs and presentations. Traffic Enforcement •Maintain the safe flow of traffic and perform investigations of traffic collisions. •Ensure the safety of Temecula streets through the enforcement of all traffic laws. •Work with Traffic Engineering to analyze traffic flow and assist with developing methods to achieve the safe and efficient movement of traffic on Temecula roadways. •Provide rapid deployment for critical incidents. Organizational Chart Expenditures by Category Personnel Performance Measures 224 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Patrol Services •Utilize two K9 Teams to aid in the search of drugs, persons, and buildings. •Serve as first responders for criminal calls and calls for service. •Evaluate and report quality of life issues, which include graffiti, vandalism, and disturbing the peace. •Provide high visibility patrol throughout the City and interact with the community. ACCOMPLISHMENTS Prior fiscal year accomplishments from Police include: Police Administration •Upgraded the Southwest Station Break Room for all station staff. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) Investigations/Special Teams •The newly implemented Old Town Metro Team built strong relationships with business owners and managers, engaged in positive interactions with Old Town visitors and residents, provided an enhanced-level of service to visitors, residents and businesses, and have a zero-tolerance focus on criminal activity in and around Old Town. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Special Enforcement Team continued to conduct specialized enforcement related to gangs, narcotics, crime trends, vice, and quality of life issues. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Investigations Bureau continued to supervise sex registrants to remain at a 100% compliance rate and increased the number of compliance checks through the City of Temecula. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Special Enforcement Team along with the Special Investigations Bureau (SIB) continued to investigate and arrest those responsible for selling Fentanyl (M-30 Pills) in the City of Temecula. (Maintain a safe and family oriented environment; Healthy and Livable City) •HOT (Homeless Outreach Team) provided high visibility patrol to retail shopping areas/business districts and commercial areas, initiated contact with subjects on the street (homeless), built a rapport and provided them with resources to help them make a change in their lives. Those homeless/transients in the area refusing any type of assistance and found engaging in criminal activity or have active warrants for their arrest have been subsequently arrested. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Metro Team, in conjunction with Temecula Code Enforcement, conducted regular safety and business code compliance checks of all massage parlors in the city of Temecula. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 225 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget •The Community Behavioral Assessment Team (CBAT) continued to respond to calls for service involving suicidal subjects and people suffering from mental health issues. CBAT's primary role is to diffuse volatile situations involving persons in crisis and to obtain treatment services as an alternative to incarceration. (Maintain a safe and family oriented environment; Healthy and Livable City) Traffic Enforcement •Partnered with Traffic Engineering to analyze traffic flow and assist with developing methods to achieve the safe and efficient movement of traffic on Temecula roadways by June 2022. (Utilize effective traffic enforcement, traffic monitoring, and planning processes to ensure the safety of Temecula motorists; Transportation Mobility and Connectivity) •Continued to partner with non-profit agencies such as Mothers Against Drunk Driving (MADD), California Office of Traffic Safety (OTS), and DUI Termination Team (DUITT) to provide traffic safety presentations, DUI related enforcement and educational programs. (Encourage community participation in public safety and emergency preparedness; A Safe and Prepared Community) Patrol Services •Continued collaboration and briefing training with the Community Behavioral Health Assessment Team (CBAT) to assist patrol deputies in utilizing best practices when dealing with persons in distress/crisis due to mental health issues. (Maintain a safe and family oriented environment; Healthy and Livable City) •Continued collaboration with HOT to effectively deal with unhoused people within the City of Temecula. Utilized all options and available resources as an alternative to incarceration. (Maintain a safe and family oriented environment; Healthy and Livable City) •Ensured deputies receive additional specialized training to properly investigate domestic violence (DV) crimes. Assigned deputies to ride with DV trained specialists on a rotational basis. (Maintain a safe and family oriented environment; Healthy and Livable City) •Continued to support the newly formed Metro Team to improve and maintain a safe environment to the core Old Town business district for residents and visitors. (Maintain a safe and family oriented environment; Healthy and Livable City) •Purchased and outfitted patrol vehicles with pursuit intervention equipment to stop fleeing vehicles. Obtained new Mobile Identification equipment for patrol vehicles to positively identify suspects in the field. (Maintain a safe and family oriented environment; Healthy and Livable City) •Domestic Violence Team continued to respond to calls for service involving domestic violence issues. The Domestic Violence Team role is to intervene and educate those situations of domestic violence before they escalate. (Maintain a safe and family oriented environment; Healthy and Livable City) •Continued to train every deputy in TruNarc Narcotics Analyzer training. TruNarc is a tool provided to deputies to determine what kind of drug was used in overdose cases. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 226 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget OBJECTIVES Current fiscal year objectives from Police include: Police Administration •Upgrade the Southwest Station Briefing Room to include a dedicated report writing area for deputies. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) •Upgrade the Southwest Station Booking area to hold additional detainees and provide for quicker processing. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) •Upgrade the Southwest Station Property and Evidence area to include additional storage and newer technology. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) Investigations/Special Teams •The newly implemented Old Town Metro Team will build strong relationships with business owners and managers, engage in positive interactions with Old Town visitors and residents, provide an enhanced-level of service to visitors, residents and businesses, and have a zero- tolerance focus on criminal activity in and around Old Town. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Special Enforcement Team will continue to conduct specialized enforcement related to gangs, narcotics, crime trends, vice, and quality of life issues. (Maintain a safe and family oriented environment; Healthy and Livable City) •Re-establish the Robbery/Burglary Suppression Team to quickly investigate robberies and burglaries occurring in the City of Temecula. Actively identify robbery and burglary suspects, make arrests, and prepare cases for criminal filings. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Investigations Bureau will continue to supervise sex registrants to remain at a 100% compliance rate and will increase the number of compliance checks through the City of Temecula. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Special Enforcement Team along with the Special Investigations Bureau (SIB) will continue to investigate and arrest those responsible for selling Fentanyl (M-30 Pills) in the City of Temecula. (Maintain a safe and family oriented environment; Healthy and Livable City) •HOT will provide high visibility patrol to retail shopping areas/business districts and commercial areas, initiate contact with subjects on the street (homeless), build a rapport and provide them with resources to help them make a change in their lives. Those homeless/transients in the area refusing any type of assistance and found engaging in criminal activity or have active warrants for their arrest will be subsequently arrested. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 227 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget •The Metro Team, in conjunction with Temecula Code Enforcement, will conduct regular safety and business code compliance checks of all massage parlors in the city of Temecula. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Community Behavioral Assessment Team (CBAT) will continue to respond to calls for service involving suicidal subjects and people suffering from mental health issues. CBAT's primary role is to diffuse volatile situations involving persons in crisis and to obtain treatment services as an alternative to incarceration. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Special Enforcement Team will work with the Riverside Sheriff Anti-Human Trafficking task force to combat incidents of human trafficking in the City of Temecula. (Maintain a safe and family oriented environment; Healthy and Livable City) •The Investigations Bureau will continue to support patrol operations by conducting follow up investigations on felony and misdemeanor crimes occurring in the City of Temecula, which require specific expertise or extensive time and resources to resolve. (Maintain a safe and family oriented environment; Healthy and Livable City) Traffic Enforcement •Partner with Traffic Engineering to analyze traffic flow and assist with developing methods to achieve the safe and efficient movement of traffic on Temecula roadways by June 2023. (Utilize effective traffic enforcement, traffic monitoring, and planning processes to ensure the safety of Temecula motorists; Transportation Mobility and Connectivity) •Continue to partner with non-profit agencies such as MADD, OTS, and DUITT to provide traffic safety presentations, DUI related enforcement and educational programs. (Encourage community participation in public safety and emergency preparedness; A Safe and Prepared Community) •Continue to provide enforcement and education with the goal of reducing red light violators by 20% by June 2023. (Utilize effective traffic enforcement, traffic monitoring, and planning processes to ensure the safety of Temecula motorists; Transportation Mobility and Connectivity) •Continue to provide enforcement and education with the goal of reducing modified exhaust and street racing related violations by 20% by June 2023. (Utilize effective traffic enforcement, traffic monitoring, and planning processes to ensure the safety of Temecula motorists; Transportation Mobility and Connectivity) •Continue to partner with TVUSD to provide traffic safety presentations and educational programs for newer drivers, and provide traffic enforcement and education in school zones with the goal of increasing traffic safety on roadways near schools and throughout the City. (Utilize effective traffic enforcement, traffic monitoring, and planning processes to ensure the safety of Temecula motorists; Transportation Mobility and Connectivity) Organizational Chart Expenditures by Category Personnel Performance Measures 228 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Patrol Services •Continue collaboration and briefing training with the Community Behavioral Health Assessment Team (CBAT) to assist patrol deputies in utilizing best practices when dealing with persons in distress/crisis due to mental health issues. (Maintain a safe and family oriented environment; Healthy and Livable City) •Continue collaboration with HOT to effectively deal with unhoused people within the City of Temecula. Utilize all options and available resources as an alternative to incarceration. (Maintain a safe and family oriented environment; Healthy and Livable City) •Ensure deputies receive additional specialized training to properly investigate domestic violence (DV)crimes. Assign deputies to ride with DV trained specialists on a rotational basis. (Maintain a safe and family oriented environment; Healthy and Livable City) •Continue to support the newly formed Metro Team to improve and maintain a safe environment to the core Old Town business district for residents and visitors. (Maintain a safe and family oriented environment; Healthy and Livable City) •Domestic Violence Team will continue to respond to calls for service involving domestic violence issues. The Domestic Violence Team role is to intervene and educate those situations of domestic violence before they escalate. (Maintain a safe and family oriented environment; Healthy and Livable City) •Continue to train every deputy in TruNarc Narcotics Analyzer training. TruNarc is a tool provided to deputies to determine what kind of drug was used in overdose cases. (Maintain a safe and family oriented environment; Healthy and Livable City) •Focus on increasing the hours of operation for the Domestic Violence Team (DV Team). Possibly add to the team to have two teams working both sides of the week. This would provide more coverage to assist with domestic violence calls during busy hours and relieve assigned patrol deputies from having to respond to them and focus on other calls for service. (Maintain a safe and family oriented environment; Healthy and Livable City) •Expand the Pechanga deputies’ hours of operation to add a swing shift deputy to work the hours of 1500-0300. This would provide a dedicated deputy to respond to any calls for service happening at Pechanga Resort Casino. Additionally, this would allow Temecula City deputies to stay in the areas they serve to handle calls and provide faster response times. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 229 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 230 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS Police: Police expenditures are projected to increase by 8.87% due to the addition of five sworn officers and one Community Services Officer, as well as a 2.5% anticipated cost increase in the contract with Riverside County Sheriff’s Office. 231 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 232 FIRE CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 233 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The Temecula Fire Department maintains the highest levels of fire and rescue, Fire Marshal, and community involvement in order to provide the safety of both our residents and visitors of Temecula. The City of Temecula contracts with the CAL FIRE/Riverside County Fire Department for Fire services. The Temecula Fire Department provides both Emergency Operation, Fire Department and Fire Marshal services. Fire Department Emergency Operations provides comprehensive emergency services utilizing a highly trained work force, progressive technology, and modern equipment to provide fire and paramedic services. The Fire Marshal’s office in cooperation with the Fire Department is dedicated to conducting public information and education programs that emphasizes the prevention of fire to preserve life and create fire safety. The Fire department as a whole is expanding the education with the business community through the annual inspection program. This allows the department to collaborate with the business owners to ensure they are in compliance and they can continue to operate in a safe environment. SERVICES Emergency Operations •Serve as first responders for all risk emergency calls and public assist calls for service within the City of Temecula. •Provide CPR/AED, Health Care Provider, and First Aid certification training. •Oversee the Temecula Citizen Corps Emergency Response Team Program. Fire Marshal •Perform annual and State mandated inspections to ensure fire and life safety compliance. •Educate the public in fire safety and prevention strategies. ACCOMPLISHMENTS Prior fiscal year accomplishments from Fire include: Emergency Operations •Maintained five-minute response times to all calls for service. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Retained four person staffing on all City engine and truck companies. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 234 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget •Reintroduced CPR and Community Emergency Response Team (CERT) classes to community in a safe environment. (Encourage community participation in public safety and emergency preparedness; A Safe and Prepared Community) •Continued to train with the Cities Emergency Operations Manager and Center to be ready for an emergency incident within the City of Temecula. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continued to work and train with cooperating agencies and to maintain good relationships for response to multi-jurisdictional incidents within the Temecula Valley. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) Fire Marshal •Continued inspections for all State Mandated regulated facilities governed by the State Fire Marshal on an annual basis for fire and life safety. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continued working with the community to educate them on Fire, Life and Safety. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) OBJECTIVES Current fiscal year objectives from Fire include: Emergency Operations •Maintain five-minute response times to all calls for service. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Retain four person staffing on all City engine and truck companies. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continue CPR, First Aid, Stop the Bleed and Community Emergency Response Team (CERT) classes to the community in a safe environment. (Encourage community participation in public safety and emergency preparedness; A Safe and Prepared Community) •Continue to train with the Cities Emergency Operations Manager and Center to be ready for an emergency incident within the City of Temecula. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continue to work and train with cooperating agencies and to maintain good relationships for response to multi-jurisdictional incidents within the Temecula Valley. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 235 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Fire Marshal •Restructure current Fire fee schedule and create an annual inspection fee during the fee study process. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continue inspections for all State Mandated regulated facilities governed by the State Fire Marshal on an annual basis for fire and life safety. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Continue working with the community to educate them on Fire, Life and Safety. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 236 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 237 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS Fire: Fire department expenditures are projected to increase by 15.6% due to changes in CalPERS pension rates, as a result of a two-year state-imposed reduction in pension rates that expire on 6/30/22. Homeland Security/EOC Management division reflects grant expenditures which have been transferred to the Emergency Management Division. 238 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 239 240 NON-DEPARTMENTAL CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 241 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION Non-Departmental is a cost center for general administrative expenditures such as the Retiree Medical Contribution, CalPERS Replacement Benefit and Property Tax Administrative Fees. It also reflects Operating Transfers Out to the Capital Improvement Program and other City funds. 242 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY ANALYSIS/COMMENTS Non-Departmental: Non-Departmental expenditures are projected to decrease by 18.59% due to the prior year including a $2,000,000 transfer to the Pension Trust. Transfers in FY22-23 include a $1,500,000 million contribution to the Fire Facilities Acquisition Fund, $7,040,000 to the newly created Community Reinvestment Fund and $500,000 for the General Plan Update. 243 244 TEMECULA COMMUNITY SERVICES DISTRICT CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 245 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DEPARTMENT OVERVIEW MISSION Provide programs that educate, entertain, and enrich the community. Host exceptional special events that foster a sense of community and pride for our residents, and raise the City’s profile as a tourism destination. Arrange for services and programs to support at-risk populations, including seniors, veterans, teens, and those with special needs. SERVICES Community Services •Plan, program and implement a wide variety of leisure services and contract classes for residents of all ages and abilities. •Participate in the Capital Improvement Program with projects that include developing new and/or improving existing parks and recreational facilities. •Reserve and program numerous facilities, including the Community Recreation Center, Temecula Community Center, Temecula Skate Park, Margarita Recreation Center, Patricia H. Birdsall Sports Park, Jefferson Recreation Center, Ronald H. Roberts Temecula Public Library, The Sports Ranch at Sommers Bend and Citywide park shelters. •Create multi-media Community Outreach collateral to increase public awareness of Community Services programs, facilities, and events. Recreation •Provide a variety of recreational and competitive sporting opportunities Citywide. •Provide an all-inclusive year-round aquatics program. •Program, reserve and maintain the sports fields, pools, courts, and rinks for recreation and competitive leagues and tournaments. Citywide Events •Organize signature City events such as the Easter Egg Hunts, Fourth of July celebration, Santa’s Electric Light Parade, Rod Run, and Winterfest Events in Old Town with the seasonal Ice Rink. •Provide free family activities during the summer including movies in the park, and concert series. •Implement regional events, including Art & Street Painting Festival, New Year’s Eve Drop and Temecula CultureFest. •Provide co-sponsorship of funds or in-kind services to special events. Organizational Chart Expenditures by Category Personnel Performance Measures 246 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Arts and Culture •Enrich, educate, and entertain our community by providing cultural experiences through the fine and performing arts. •Continue to strive for excellence by bringing in professional artists and continuing the traditional and unique programming through “Temecula Presents.” •Partner with local schools and studios to offer enhanced artistic and cultural experiences to youth. •Serve as a significant cultural asset to the local and regional community. •Enrich, educate, and entertain the community by providing experiences in historical preservation and cultural learning. •Supplement public education through use of traveling exhibits, historical walking tours, museum tours, and history contests. Human Services •Focus on enrichment, recreation, education, employment and resources that support youth, young adults, persons with disabilities, senior citizens, and at-risk populations. •Establish opportunities that better engage youth in student based advisory boards which promote community and civic involvement. •Provide leadership development and training for youth and young adults. •Offer health and wellness education and social programs for seniors. •Provide resources, education and programs that are vital to youth, young adults, at-risk individuals, persons with disabilities and senior citizens to lead a healthy, productive, and self-sufficient quality of life. •Build new and expand current partnerships that improve the overall quality and coordination of services and programs. •Provide training among City staff and local key constituencies that serve persons with disabilities. •Coordinate Homeless Outreach efforts with staff, community partners, businesses, and public safety in support of the City’s Responsible Compassion initiative. •Provide outreach to the City’s military and veteran community. Administration •Support City strategic initiatives that enhance community partnerships, optimize utilization of resources, and advance the mission of the organization. •Participate in the Capital Improvement Program with projects that include developing new and/or improving existing parks and recreational facilities. Organizational Chart Expenditures by Category Personnel Performance Measures 247 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget •Provide library services including collections that include books, periodicals, DVDs, CDs and resource data bases geared for adults, teens, and children; provide resources such as homework center and tutoring via a partnership between the Temecula Valley Unified School District, and Law Library Services via a partnership with the Riverside County Law Library. ACCOMPLISHMENTS Prior fiscal year accomplishments from Temecula Community Services District include: Community Services •Added Sports Ranch at Sommers Bend to park inventory for usage and field allocation. Park dedication and ribbon cutting held on February 12,2022. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Evaluated, planned and implemented a variety of contract class programs for the community while adhering to public health guidelines. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) Recreation •Increased park and facility usage while adhering to public health guidelines. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Evaluated passive parks for additional sports rental opportunities. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Offered free swim lessons and water safety for low-income families through First 5 Riverside funding, as well as offered adaptive swim lessons for participants with special needs. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) •Resumed in-person Day Camp by grouping participants in cohorts to comply with COVID restrictions and recommendations set forth by the State of California, and Centers for Disease Control and Prevention. (Maintain a safe and family oriented environment; Healthy and Livable City) Citywide Events •Reviewed all Signature Special Events for new (post COVID-19 pandemic) "normal" logistics. (Provide signature special events and cultural opportunities; Healthy and Livable City) •Provided four new Community Special Events. (Provide signature special events and cultural opportunities; Healthy and Livable City) •Recommended alternate venues / reduced participants for Old Town events due to space limitations. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 248 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Arts and Culture • Provided technology-driven alternatives to supplement public education by sharing historical walking tours in virtual platforms, which will allow access to underserved communities. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) • Created a robust Public Art Program, to include a Utility Box Art Pilot Program, Pop-Up Art Initiative, Mural Program, and began the process for a sustainable and significant public art initiative. (Provide signature special events and cultural opportunities; Healthy and Livable City) • Enhanced the Temecula Valley Museum by creating a plan to update exhibits and researching the ability to add immersive experiences. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) • Programmed and marketed the 17th season of Temecula Presents and Theater 2021-2022 Season, including the Sweet 16 celebration of Temecula Theater. (Continue to promote the Temecula Valley as a destination; Economic Prosperity) • Upgraded theater lighting system significantly improved the visual theater production and performance experience, with live video and animated displays during performances. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) • Created the Student Art Mural Program, providing new and emerging artists a temporary space to showcase their work while creating a dynamic art space in Sam Hicks Monument Park. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) Human Services • Continued providing meal services to youth, teens, seniors, and underserved communities. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) • Identified public and private agency employment and workforce opportunities to individuals with special needs and underserved communities. (Continue to pursue high quality employment opportunities for Temecula residents; Economic Prosperity) • Focused on the enrichment of programs, activities, events, and services that serve youth, teens, seniors, and special needs. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) • Created opportunities to engage youth in civic leadership opportunities and Race, Equity, Diversity and Inclusion (REDI) goals. (Provide signature special events and cultural opportunities; Healthy and Livable City) • Participated in the 2022 Point-In-Time (PIT) Count and show a reduction in the City's incidence of homelessness by continuing to provide outreach and connect individuals to appropriate resources for stabilization. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 249 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Administration •Continued to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the Department. (Diversify the City's revenue base to ensure stability in any economic climate; Accountable and Responsive City Government) •Implemented recommendations from the Community Services Master Plan. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Partnered with Public Works to complete replacements of identified park playgrounds. (Actively maintain and preserve City assets and infrastructure; A Sustainable City) OBJECTIVES Current fiscal year objectives from Temecula Community Services District include: Community Services •Add Adult Basketball Division on Thursday evening to the existing Tuesday night league. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Plan, program and implement aquatic programming at the new Margarita Recreation Center. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) Recreation •Establish programming for leagues, rentals and tournaments at The Sports Ranch at Sommers Bend. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Plan programming for the new aquatic facility at the new Margarita Recreation Center in anticipation of the opening in summer 2023. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) •Expand the Day Camp Junior Counselor Program to include classes and education for participants to qualify as Day Camp Counselors in the future. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) •Resume programming of recreation facilities to the pre-COVID level, as well as incorporating new programming to meet the community's needs. (Foster an “educated community” through a wide variety of opportunities; Healthy and Livable City) Citywide Events •Review all Signature Special Events for new "living with an endemic" logistics. (Provide signature special events and cultural opportunities; Healthy and Livable City) •Provide two new Community Special Events. (Provide signature special events and cultural opportunities; Healthy and Livable City) •Recommend new events for Old Town Temecula due to space limitations. (Maintain a safe and family oriented environment; Healthy and Livable City) Organizational Chart Expenditures by Category Personnel Performance Measures 250 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Arts and Culture •Program, market and produce the 18th Season of Temecula Presents and Theater 2022-2023 Season Brochure. (Continue to promote the Temecula Valley as a destination; Economic Prosperity) Human Services •Maintain the continuity of meal programs for seniors, youth and individuals with disabilities during our temporary move to the Temecula Community Center. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Expand the City's internship program to support youth, young adults, seniors, individuals with disabilities and at-risk youth under the COVID-19 Pandemic Community Reinvestment Program. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Focus on quality programs and services that support Human Services. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Expand upon our cultural event offerings within the Human Services Division. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Complete the Mary Phillips Senior Center Building renovations. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Participate in the 2023 Point-In-Time (PIT) Count and show a reduction in the City's incidence of homelessness by continuing to provide outreach and connect individuals to appropriate resources for stabilization. (Maintain a safe and family oriented environment; Healthy and Livable City) Administration •Continue to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the Department. (Diversify the City's revenue base to ensure stability in any economic climate; Accountable and Responsive City Government) •Implement recommendations from the Community Services Master Plan. (Promote high quality parks and recreation programs and cultural services; Healthy and Livable City) •Partner with Public Works to complete replacements of identified park playgrounds. (Actively maintain and preserve City assets and infrastructure; A Sustainable City) Organizational Chart Expenditures by Category Personnel Performance Measures 251 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 252 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY 253 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ANALYSIS/COMMENTS Citywide Operations: TCSD Operational expenditures are projected to increase by 14.64% due to a combination of additional staff, a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates and an increase in Internal Service Fund Allocations. Service Level B: Service Level B Expenditures will be adjusted and updated for the Adopted Budget. Service Level C: Service Level C expenditures are projected to decrease by 16.1% due to the transfer of Salary & Benefits to the Public Works Department. Service Level D: Service Level D expenditures are projected to increase 6.52% due to the expenditures for the new SB1383 Cal Recycle Grant and the contractually obligated inflation tied to the contract with CR&R to provide Refuse and Recycling services. Service Level R: Service Level R expenditures are expected to increase by 5.32% due to a slight increase in operating expenditures. Service Level L: Service Level L expenditures reflect a decrease of 4.17% due to a reallocation of Salary & Benefits. Library: Library expenditures reflect an increase of 3.4% due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. 254 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 255 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget 256 INTERNAL SERVICE FUNDS CITY OF TEMECULA ANNUAL OPERATING BUDGET // 2022-2023 257 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Insurance EXPENDITURES BY CATEGORY Analysis/Comments Insurance: The Insurance accomplishments and objectives are reflected in the Human Resources Department summary, under the Risk Management division. Insurance expenditures are projected to increase by 16.96% due to higher claims costs, insurance premiums and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. PERSONNEL ALLOCATION 258 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Workers’ Compensation EXPENDITURES BY CATEGORY Analysis/Comments Workers’ Compensation: The Workers’ Compensation accomplishments and objectives are reflected in the Human Resources Department summary, under the Risk Management division. Workers’ Compensation expenditures are projected to increase by 27.15% due to higher claims costs and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. PERSONNEL ALLOCATION 259 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Vehicles and Equipment EXPENDITURES BY CATEGORY Analysis/Comments Vehicles and Equipment: Vehicles and Equipment expenditures for FY22-23 include the replacement of two Fire medic squads, a construction dump truck, one Community Development vehicle, a Hydro Tex washer for Public Works, and four portable arrow boards for Public Works, all of which have reached the end of their useful lives. 260 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Information Technology DEPARTMENT OVERVIEW MISSION Information Technology and Support Services (ITSS) is charged with providing the highest quality of leadership, support, and essential services to the organization’s operating departments to maintain service levels necessary to efficiently and effectively meet all departmental program requirements at the Civic Center and off-site facilities. These services include Geographic Information Systems (GIS), Enterprise Applications, Media Services, Network Infrastructure, Tech Support, and Support Services. ITSS oversees 500+ electronic devices, network infrastructure, and 500+ user accounts at the Civic Center and 20+ offsite facilities Citywide. There are currently over 35 business application systems administered and supported by staff. In addition, Media Services oversees social media and E-Government services, and produces original video content for direct communications with residents. SERVICES Information Technology and Support Services • Provide maintenance and IT support to City staff, its facilities, and the public on all network functions, which support the City’s website, security systems, communications, databases, and applications. • Provide technical support, manage applications, and assess needs to assist in business process analysis. • Provide public and staff access to the City’s online application for generating maps and conducting geographic analysis. • Maintain and support the City’s website and utilize social media and E-Government services to provide official information to the public. • Provide technical support for City emergency operations and emergency communications. Support Services • Provide consistent, resourceful, and efficient customer service to the public by professionally handling phone calls and/or by servicing the needs of the visiting public. • Provide central printing services for Citywide departments and off-site facilities, mailroom services, and auxiliary services (laminating, folder/inserter, wide-format printing, binding). • Manage the Canon copier lease/maintenance/replacement for the Civic Center and off-site facilities, including the Library. Organizational Chart Expenditures by Category Personnel Performance Measures 261 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ACCOMPLISHMENTS Prior fiscal year accomplishments from Information Technology include: Information Technology and Support Services •Provided accurate and reliable data and information to Temecula residents, businesses, visitors, and staff through the acquisition of aerial photography covering Temecula and the surrounding areas. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Provided increased application security and usability for citizens and staff through the upgrade of EnerGov to HTML5 using version 2021. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Provided implementation support to the Finance and Human Resources departments throughout the first phase of the Munis Enterprise Resource Planning (ERP) system implementation. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Delivered enhanced security for residents and staff through the expansion and enhancements to the City's surveillance and security systems. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) •Maintained a robust and stable server environment through planning and preparing for the replacement of the City's server infrastructure. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) Support Services •Offered enhancements to usability and staff efficiency through the lifecycle replacement of City copy machines. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Coordinated managed print services for all public and staff copy machines throughout the Civic Center and all off-site facilities. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) •Provided mailroom, copy-center, and related services (large format printing, laminating, folding/inserting, binding, etc.) for Citywide departments and off-site facilities. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) OBJECTIVES Current fiscal year objectives from Information Technology include: Information Technology and Support Services •Provide enhanced usability and increased network speeds to residents and visitors of Old Town through enhancements to the Old Town Wi-Fi system. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 262 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget • Allow for increased communication between staff, partners, and the business community through the addition of video conferencing equipment in Civic Center conference rooms. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) • Build improvements in network security, speed, and storage capacity through the replacement of the City's network infrastructure. (Provide highly functional and sustainable City facilities and infrastructure; Accountable and Responsive City Government) • Offer increases in staff efficiency by assisting the Finance and Human Resources departments in the completion of the second phase of the Munis Enterprise Resource Planning (ERP) system implementation. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) • Foster enhanced safety for residents and staff through the expansion and enhancements to the City's surveillance and security systems. (Minimize the impact to life, property, and the environment from natural hazards and emergency situations; A Safe and Prepared Community) • Enrich and enhance the Old Town ambiance and experience for residents and visitors through the replacement of the Old Town Sound System. (Maintain a safe and family oriented environment; Healthy and Livable City). Support Services • Offer increased reliability and improved staff efficiency through the life cycle replacement of City poster production and mail room equipment. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government)) • Coordinate managed print services for all public and staff copy machines throughout the Civic Center and all off-site facilities. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) • Provide mail room, copy-center, and related services (large format printing, laminating, folding/inserting, binding, etc.) for Citywide departments and off-site facilities. (Foster an organizational structure that aligns resources with demands; Accountable and Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 263 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ORGANIZATIONAL CHART 264 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget EXPENDITURES BY CATEGORY 265 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget ANALYSIS/COMMENTS Information Technology: Information Technology expenses are projected to increase by 12.46% due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates and an increase in Capital Outlay due to the anticipated purchase of audio and visual upgrades throughout the City and workstations for new staffing. GIS: GIS expenses are projected to increase by 5.46% primarily due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. Library: Library expenses are projected to decrease by 10.76% due to a reallocation of Salaries & Benefits to other Information Technology divisions. Technology Replacement: Technology Replacement expenses total $160,000 to replace a GIS plotter ($10,000), telephone system replacements ($30,000), a UPS battery refresh ($50,000) and to fund the annual computer lifecycle replacement program ($70,000). Support Services: Support Services expenses will increase due to a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. Support Services Replacement: Support Services Replacement expenses total $25,000 to replace a plotter and a paper folder. Public Education & Government: PEG expenses total $135,000 for the replacement of audio and video equipment ($30,000) and the annual contribution to fund balance for the future replacement of PEG-funded equipment ($105,000). 266 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATIONS 267 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Facilities EXPENDITURES BY CATEGORY Analysis/Comments Facilities: Facilities departmental expenditures are projected to increase over the prior year due to a combination of additional staff and a negotiated adjustment to the City’s Salary Schedule to bring wages up to local market rates. 268 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget PERSONNEL ALLOCATION 269 270 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget CAPITAL IMPROVEMENT PROGRAM SUMMARY The City prepares a separate Capital Improvement Program Budget document, which serves as a five‐year planning tool to program the financing and scheduling of major projects undertaken by the City. The CIP Budget is prepared in accordance with generally accepted accounting principles. Within this section of the Annual Operating Budget, summary schedules from the Capital Improvement Program Budget are included. To access the individual Project Budget Sheets, please refer to the Fiscal Years 2023‐27 Capital Improvement Program Budget. The CIP Budget includes the City’s major projects, which exceed $30,000 in cost, have long‐term life spans, and are generally non‐recurring. These projects include land and right‐of‐way acquisition, design, construction or rehabilitation of public buildings or facilities, public infrastructure design and construction, park design and construction, and affordable housing projects. The City’s goal in providing a CIP Budget is to develop a multi‐year plan for capital improvements, update it annually, and follow through with all projects in accordance with the plan. In determining the relative merit of a proposed project, key management team members evaluate projects for feasibility, community enhancement, infrastructure and historic preservation, and safety. PLAN DEVELOPMENT A component of the CIP includes the integration of the budget with the Quality of Life Master Plan (QLMP). The QLMP provides the framework for the City’s strategic budgeting activities. The City Council has set priorities and guided staff in developing six Core Values upon which to focus time and resources (as identified in the QLMP). These areas include: 1.Healthy and Livable City 2.Economic Prosperity 3.A Safe and Prepared Community 4.A Sustainable City 5.Transportation Mobility and Connectivity 6.Accountable and Responsive City Government All projects presented in the CIP are carefully programmed in concurrence with the City’s QLMP to ensure the community’s capital improvement needs are met both now and in the future. The framework for the CIP is further defined in the City’s CIP fiscal policy to provide a structure within which fiscal decisions can be made and to optimize all available resources toward the accomplishment of the City’s Core Values as defined in the QLMP. This CIP budget document was developed by incorporating input from key management team members based on community comments and feedback received throughout the year. Through several workshops, the team then identified and evaluated community needs in the areas of roads/streets, bridges, public buildings, parks and recreation facilities. Each proposed project was reviewed and discussed to ensure funding, timing, and necessity. All projects are evaluated by the City’s Planning Commission to ensure consistency with the provisions of the City of Temecula General Plan, while considering the City’s long‐ term vision as developed by the City Council. The proposed circulation, infrastructure, and parks and recreation projects are reviewed and approved by the Planning Commission, Public/Traffic Safety Commission, and the Parks and Recreation Commission. 271 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget CAPITAL IMPROVEMENT PROGRAM SUMMARY (continued) Projects have been scheduled in each of the five fiscal years based on community needs, as determined by the City Council and availability of funding. Priority rankings in each major category (Circulation, Infrastructure/Other, Parks and Recreation, and Successor Agency to the Temecula Redevelopment Agency / Housing) have been assigned in accordance with the priority guidelines as follows: The project is urgent and must be completed as soon as feasible. Failure to address the project may impact the health, safety, or welfare of the community or have a potential significant impact on the financial well‐being of the City. The project must be initiated or financial opportunity losses may result. The project is important and addressing it is necessary. The project impacts safety, law enforcement, health, welfare, economic base, quality of life, and has been identified as a priority in the Quality of Life Master Plan. The project will enhance quality of life and will provide a benefit to the community. Completion of the project will improve the community by providing cultural, recreational, and/or aesthetic value, or is deemed as a necessary improvement to a public facility. The project will be an improvement to the community but does not necessarily need to be completed within a five‐year capital improvement program time frame. FISCAL YEARS 2023-27 CAPITAL IMPROVEMENT PROGRAM SUMMARY The CIP includes a total of $793,744,301 in identified Capital Projects, with a total of $590,098,244 in project funding. There is $203,646,057 in “Unspecified” project funding, indicating that a revenue source has not yet been secured for these projects, which have been identified as necessary infrastructure for the City, and will require that funding sources be identified before the project construction can commence. LEVEL I: LEVEL II: LEVEL III: FUTURE YEARS PROJECTS: 272 Annual Operating Budget City of Temecula Fiscal Year 2022‐23 Annual Operating Budget CAPITAL IMPROVEMENT PROGRAM SUMMARY (continued) The administrative costs associated with managing the development of these projects have been estimated (generally as five to ten percent of estimated construction costs) and programmed in each project budget. Various sources contribute to the funding of the Capital Improvement Program, including many City Funds, State and Federal Grants, Community Facility District Funds, Successor Agency Funds, and Transportation Uniform Mitigation Fee (TUMF) Funds. The City seeks all available funding sources for projects, including federal, state, and local grants, outside contributions and City funds. Total funding for the FY2023‐27 CIP program reflects 70% from outside funding sources, with the remaining 30% provided by various City funds, including Measure S, Measure A, Development Impact Fee Funds, General Fund, RMRA Funds, and several other sources. A total of 9 new projects have been added to the CIP including the following: • Auto Mall Wayfinding Signs •Bike Lane and Trail Program – Ronald Reagan Sports Park Trails •Butterfield Stage Road Storm Drain Improvements •Habitat for Humanity – Old Town Units •Harveston Community Park Building Renovations and Expansion •Infill Recreation Amenities •Rancho California Road Median Improvements •The MERC Concession Upgrade •Utility Undergrounding – Main Street and Vicinity As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. Seven projects reflect the addition of ongoing Operating costs, while one project identifies ongoing Operating savings. The amounts identified on the table are incorporated into the General Fund Five‐Year Forecast. 273 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DESCRIPTION OF REVENUE SOURCES Assembly Bill 2766 (AB 2766) State funds that are available to implement programs and projects that reduce air pollution from motor vehicles. Capital Financing Funding available through financing proceeds to be used for Capital Improvements. Community Development Block Grant (CDBG) The Federal Department of Housing and Urban Development (HUD) provides funds through the Community Development Block Grant Program (CDBG) for local community development, housing activities, and public services. The primary objective of the CDBG Program is the development of viable communities by providing decent housing, a suitable living environment, and expanded economic opportunities primarily focused on low‐ and moderate‐income persons and neighborhoods. Community Facilities District (CFD) A tool that allows the City to construct desired and authorized public improvements with costs of the projects paid for by the benefitted properties within the boundaries of a designated area. The costs are then financed through the issuance of bonds payable over a period of years. Department of Water Resources (DWR) Proposition 84 Funding made available from the State of California Department of Water Resources funding from the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006. 2015 Proposition 84 Integrated Regional Water Management (IRWM) Implementation Grant, California Public Resources Code Section 75026 of Divisions 26.5 of the California Water Code (CWC). Development Impact Fees (DIF) Fees generated by development applications to offset the effect of development to include infrastructure, fire protection, public facilities and services, libraries, roads, schools, parks, traffic signal mitigation and open space/public art. Fees are determined by the cost of the project at the time of application. Facilities Replacement Fund This Fund was established to accumulate resources necessary to replacement future Facilities systems, equipment and fixtures. General Fund City General Funds retained for capital improvement projects. Highway Safety Improvement Program The Highway Safety Improvement Program (HSIP), codified as Section 148 of Title 23, United States Code (23 U.S.C §148), is a core federal‐aid program to States for the purpose of achieving a significant reduction in fatalities and serious injuries on all public roads. 274 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DESCRIPTION OF REVENUE SOURCES (continued) Highway Bridge Program This program is funded by Federal Highway Administration (FHWA) and authorized by United States Code (USC) Title 23, Section 144. The purpose of the Program is to replace or rehabilitate public highway bridges over waterways, other topographical barriers, other highways, or railroads when the State and the Federal Highway Administration determine that a bridge is significantly important and is unsafe because of structural deficiencies, physical deterioration, or functional obsolescence. Infrastructure for Rebuilding America (INFRA) The INFRA program provides dedicated, discretionary funding for projects that address critical issues facing our nation’s highways and bridges. Local Early Action Planning (LEAP) Grant This grant program is provided by the California Department of Housing and Community Development (HCD). LEAP provides one‐time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th cycle Regional Housing Needs Allocation (RHNA). Measure A (Local Streets and Roads) Riverside County’s half‐cent sales tax to fund transportation projects to improve local streets and roads, major highways, commuter rail, and public transit throughout Riverside County. Measure S Pursuant to Ordinance 16‐06, on November 8, 2016, the people of Temecula approved a local 1% Transactions and Use Tax, effective on April 1, 2017, to maintain 9‐1‐1 emergency response times, prevent cuts to local paramedic, police, fire protection, school safety patrols, youth/after‐school, senior, disabled services, improve freeway interchanges, reduce traffic and provide for other general services. Mobile Source Air Pollution Reduction Review Committee (MSRC) The MSRC is the Mobile Source Air Pollution Reduction Review Committee, established under state law (AB 2766) whose sole mission is to fund projects that reduce air pollution from motor vehicles within the South Coast Air District in Southern California. Public Art Fund Public Artwork enhances the quality of life for individuals living and working in the Temecula. This fund was adopted by City Council for design, acquisition, installation, improvement, maintenance and insurance of public artwork displayed on City property; offering of performing arts programs on City property for the community; and art education programs on City property for the community (provided, however, that not more than five percent of the fund’s annual budget shall be used for this purpose). 275 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DESCRIPTION OF REVENUE SOURCES (continued) Quimby The City’s park‐in‐lieu or park development fee is assessed under provisions of the Subdivision Map Act which allows the City to require the dedication of land or the payment of a fee in lieu of land to be used for the purchase (or development) of park property. Reimbursements/Other Funding made available from other agencies or sources on a reimbursement, donation, and contribution basis. The actual agreement states the conditions of monies specific to a particular project. Safe, Accountable, Flexible, Efficient, Transportation Equity Act ‐ Legacy for Users (SAFETEA–LU) Signed into law on August 10, 2005, and provides for highways, highway safety, and public transportation to improve safety, reduce traffic congestion, and other activities related to solving transportation problems. This new program takes off where STP, TEA‐21, and ISTEA left off. Senate Bill 1/Road Repair and Accountability Act (RMRA)/Active Transportation Program (ATP) The State of California imposes per gallon excise and sales taxes on fuel sales, as well as registration taxes on motor vehicles, for allocation to agencies for transportation purposes. In 2017, the State established the Road Repair and Accountability Act (RMRA) to allocate a greater share of additional monies for transportation purposes. Senate Bill 2 SB 2 (2017) is part of a $15 billion housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, SB 2 established a permanent source of revenue intended to increase the affordable housing stock in California. The PGP is intended for the preparation, adoption, and implementation of plans that streamline housing approvals and accelerate housing production. Senate Bill 621 Represents a regional organization made up of tribal governments primarily within Riverside and San Bernardino counties. Tribal Alliance of Sovereign Indian Nations (TASIN) member tribes contribute a percentage of their gaming revenues to the Indian Gaming Special Distribution Fund (SDF), as established by the State Legislature, to offset the impacts of Indian gaming on public services and infrastructure. Senate Bill 821 B 821, the Bicycle and Pedestrian Facilities Program, is provided through the Transportation Development Act (TDA), funded through a ¼ cent of the general sales tax collected statewide. The TDA provides two major sources of funding for public transportation: the Local Transportation Fund (LTF) and the State Transit Assistance (STA). The LTF provides funding for essential transit and commuter rail services, SB 821 and planning. Each year, two percent of the LTF revenue is made available for use on bicycle and pedestrian facility projects through the SB 821 program. 276 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget DESCRIPTION OF REVENUE SOURCES (continued) State Transportation Improvement Program (STIP) The State Transportation Improvement Program (STIP) is the biennial five‐year plan adopted by the California Transportation Commission (CTC) for future allocations of certain state transportation funds for state highway improvements, intercity rail, and regional highway and transit improvements. State law requires the Commission to update the STIP biennially, in even‐ numbered years, with each new STIP adding two new years to prior programming commitments. State Highway Operation Protection Program & Minor Program (SHOPP) State Highway System’s program that funds repair and preservations, emergency repairs, safety improvements and some highway operational improvements. Surface Transportation Program (STP) Federal funds available for local agencies to improve the safety and efficiency of the local transportation system. Sustainable Communities Program The Sustainable Communities Program is a key Southern California Association of Governments (SCAG) initiative for implementing the 2016‐2040 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS), combining Integrated Land Use assistance for integrated land use and transportation planning with Green Region assistance aimed at local sustainability and Active Transportation assistance for bicycle and pedestrian planning efforts. Tax Allocation Refunding Bonds Series 2017A and 2017B As of January 31, 2012, the Redevelopment Agency of the City of Temecula has been dissolved and the City has elected to become the Successor Agency. The Successor Agency will be responsible for the winding down of the remaining activities of the dissolved Redevelopment Agency. These remaining activities include completing affordable housing and infrastructure projects that are funded with tax allocation bonds issued by the former redevelopment agency. The Series 2017A and 2017B Refunding Bonds were issued in 2017 to refinance 2002, 2006, 2007, 2010, and 2011 Tax Allocation Bonds to provide financing for low and moderate income housing projects. The outstanding bonds will be repaid in full in 2038. Monies to pay bond debt service is requested from the State and disbursed by the County from the Trust Fund established to accumulate tax increment generated by the former Temecula Redevelopment Agency area. Technology Replacement Fund This fund is used for the replacements of computers, system Software and all other Information Technology equipment. Transportation Uniform Mitigation Fee (TUMF) Multi‐jurisdictional development impact fee paid for by new development to provide the transportation infrastructure necessary to accommodate new development. WRCOG‐BEYOND Framework Fund Program Local assistance funding program for Economic Development and Sustainability Projects. 277 278 Funding SourcePrior Years Actuals2021‐22Amended2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26Projected2026‐27ProjectedTotalProjectCostCity FundsAffordable Housing 1,301,719 557,000 1,858,719Assembly Bill 2766 ‐ Motor Vehicle Subvention 1,564,332 217,634 216,955 144,575 143,830 151,664 162,554 2,601,544Capital Financing 6,405,0006,405,000Community Reinvestment Program 4,000,000 4,000,000Contribution of Land 501,000 501,000Facilities Replacement Fund 743,666 729,694 500,000 750,000 1,000,000 1,000,000 1,000,000 5,723,360Gas Tax 1,200,0001,200,000General Fund 22,068,183 1,022,506 500,000 479,443 24,070,132Measure A 21,427,722 7,575,889 2,575,000 1,630,380 1,220,380 1,256,380 1,294,071 36,979,822Measure S 27,929,997 28,886,909 14,942,089 7,128,781 2,934,000 2,092,000 1,825,000 85,738,776Proposition 42 88,00088,000Public Art Fund 25,00025,000RMRA ‐ Road Repair & Accountability Act 5,054,005 3,790,721 2,269,086 2,314,468 2,360,757 2,407,972 2,456,132 20,653,141TEAM ‐ Temecula Energy Efficiency Asset Fund 600,000 98,929 100,000 798,929Technology Replacement Fund 763,534763,534Uptown Temecula New Streets In Lieu Fee 500,857500,857City Funds Total86,505,905 49,389,463 22,160,059 12,547,647 7,658,967 6,908,016 6,737,757 191,907,814Community Facility District FundsCFD 01‐02 (Harveston) 1,005,8401,005,840CFD 03‐01 (Crowne Hill) 502,211502,211CFD 03‐02 (Roripaugh Ranch) 38,401,739 8,342,918 46,744,657CFD 03‐03 (Wolf Creek) 837,236 27,294864,530CFD 16‐01 (Roripaugh Ranch‐Phase II) 6,722,850 6,722,850Community Facility Districts Total40,747,026 15,093,062 55,840,088Development Impact Fee FundsDIF‐Corporate Facilities 1,004,925 397,162 200,000 1,602,087DIF‐Library Facilities 2,194,486 67,440 2,261,926DIF‐Open Space & Trails 1,304,785 34,231 360,000 690,0002,389,016DIF‐Park & Rec Improvements 1,642,490 1,681,048 2,015,160 1,100,0006,438,698DIF‐Police Facilities 927,678 237,435 595,0001,760,113DIF‐Quimby 850,000 2,193,952 1,100,000 1,096,6405,240,592DIF‐Street Improvements 12,749,878 742,314 4,912,820 3,534,615 587,00022,526,627DIF‐Traffic Signals 1,303,007 327,748 375,000375,000300,000 2,680,755 City of TemeculaFiscal Year 2022-23Annual Operating Budget Projected Revenue Summary279 Funding SourcePrior Years Actuals2021‐22Amended2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26Projected2026‐27ProjectedTotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Projected Revenue SummaryDWR Grant 64,109 361,920426,029Development Impact Fees Total22,041,358 6,043,250 9,557,980 6,421,255 962,000300,000 45,325,843Federal Grant BTA ‐ Bicycle Transportation Account 223,311223,311CDBG ‐ Community Development Block Grant 1,413,058 1,334,971 323,660323,660 323,660 323,660323,660 4,366,329CMAQ ‐ Congestion Mitigation Air Quality 729,872 1,178,1591,908,031HBP ‐ Highway Bridge Program 270,830 210,393 4,450,29614,711,28019,642,799HSIP ‐ Highway Safety Improvement Program 2,605,9102,605,910INFRA ‐ Infrastructure for Rebuilding America Grant 50,000,00050,000,000SAFETEA‐LU ‐ Safe, Accountable, Flexible, Efficient Transportation 1,439,839 1,602,3603,042,199STIP ‐ Surface Transportation Improvement Program 47,600,00047,600,000STP (RCTC) ‐ Surfact Transportation Program12,035,211 940,78912,976,000Federal Grants Total16,112,122105,472,582 4,773,956 15,034,940 323,660 323,660 323,660 142,364,579Reimbursements/OtherCounty Assessment District 159 4,008,270 4,008,270Developer Contribution 786,764 7,976,775 2,807,20011,570,739Pechanga Tribe Contributions 5,000,0005,000,000Reimbursement‐Pechanga IGA 5,000,000 1,150,0006,150,000Reimbursements 8,878,936 1,122,897 3,000,00013,001,833Reimbursements/Other 1,190,582385,9401,576,522Settlement Proceeds 500,000500,000Reimbursements/Other Total16,356,282 14,099,672 11,351,41041,807,364State/Local GrantsBeyond Grant 19,85719,857Grants ‐ Local Early Action Planning Grant ($500,000) & Cal Dept of Housing and Community Development ($310,000) 810,000810,000Grants ‐ Local Roadway Safety Plan 72,00072,000Grants ‐ CalOES Public Safety Power Shutoff (PSPS) 185,000185,000Grants ‐ Cal Fire Urban & Community Forestry (Prop 68) 323,930323,930Grants ‐ Cal Department of Parks and Rec (Prop 68) 247,126247,126MSRC‐Mobile Source Air Review Committee Grant 141,000141,000Senate Bill 1 ‐ Active Transportation Program722,595 4,538,4055,261,000Senate Bill 621 ‐ Tribal Alliance of Sovereign Indian Nations14,446,520 140,000 20,00014,606,520Senate Bill 821 ‐ Bicycle & Pedestrian Facilities Program115,278 17,022132,300280 Funding SourcePrior Years Actuals2021‐22Amended2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26Projected2026‐27ProjectedTotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Projected Revenue SummarySHOPP ‐ State Highway Operation & Protection Program1,250,0001,250,000State/Local Grants Total15,489,251 6,289,482 1,270,00023,048,733Successor Agency to the Redevelopment Agency (SARDA)RDA Bond Proceeds 12,707,218 12,707,218RPTTF‐Redevelopment Property Tax Trust Fund 750,000 750,000Successor Agency to the Redevelopment Agency (SARDA) Total12,707,218 750,000 13,457,218Temecula Community Services District FundsService Level C ‐ Zone 16 21,50021,500Service Level C ‐ Zone 18 10,00010,000Service Level C ‐ Zone 20 30,80330,803Service Level C ‐ Zone 28 300,000 100,000 400,000Temecula Community Services District Funds Total362,303 100,000 462,303Transportation Uniform Mitigation Fund (TUMF)TUMF 1,438,0001,438,000TUMF (CETAP/RCTC) 24,275,109 1,124,890 3,500,00028,899,999TUMF (RCTC) 11,969,00011,969,000TUMF (WRCOG) 17,857,761 11,219,542 4,500,00033,577,303Transportation Uniform Mitigation Fund (TUMF) Total55,539,870 12,344,432 8,000,00075,884,302Total Projected Revenue ‐ Capital Improvement Program252,791,813 221,801,464 57,213,405 34,753,842 8,944,627 7,231,676 7,361,417 590,098,24416,840,000 1,058,00017,898,000281 CIP MAJOR REVENUE SOURCES PROJECTED REVENUES: $590,098,244 City of Temecula Fiscal Year 2022-23 Annual Operating Budget 282 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostButterfield Stage Road Extension 40,771,82941,407,030Butterfield Stage Road Storm Drain Improvements 7,008,270 7,008,270Cherry Street Extension & Murrieta Creek Low‐Flow Crossing 500,000 130,000 1,958,962 34,490,00037,248,262Citywide Buffered Bike Lane Striping165,278189,000Diaz Road Expansion494,6098,403,5553,614,47814,255,991Emergency Vehicle Pre‐Emption Upgrade Program ‐ Citywide 251,565352,000Flashing Beacons & Speed Advisory Signs 275,284 32,000 32,000 371,284French Valley Parkway/I‐15 Improvements ‐ Phase I 28,493,56828,748,032French Valley Parkway/I‐15 Improvements ‐ Phase II 27,673,241 300,000 300,000 170,000138,736,346French Valley Parkway/I‐15 Improvements ‐ Phase III180,000227,0008,954,000 131,564,000144,094,794I‐15 Congestion Relief1,451,7254,750,000 79,4438,971,710I‐15/State Route 79 South Ultimate Interchange45,723,56820,00051,091,897Medians & Parkways ‐ Citywide854,839894,838Motor Car Parkway Improvements750,000750,000Murrieta Creek Bridge At Overland2,281,7904,450,296 18,130,89526,073,374Nicolas Road Extension & Improvements22,184,660Overhead Street Name Sign Replacement Program ‐ Citywide 100,000325,000225,00022,184,6601,210,39339,9995,348,3302,690,5423,169,794110,293,105254,46432,0001,743,349100,43523,722169,300CIRCULATION PROJECTSCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Project Expenditure Summary2021‐22Amended2026‐27Projected635,201283 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Project Expenditure Summary2021‐22Amended2026‐27ProjectedOverland Drive Extension Commerce Center 8,317,8978,317,897Overland Drive Widening 352,000 852,020 1,340,400 2,894,420Pavement Rehabilitation Program ‐ Citywide30,629,4762,269,086 2,604,448 3,581,137 3,664,35257,092,649Pechanga Parkway Widening5,000,0005,000,000Rainbow Canyon Road Pavement Rehabilitation1,150,0001,150,000Rancho California Road Median Improvements603,000 115,000 3,087,000 50,0003,855,000Roundabout Improvements On Ynez Road835,000835,000Traffic Signal ‐ Equipment Enhancement Program ‐ Citywide 834,831150,000 260,000 260,000 260,0003,396,788Traffic Signal ‐ Installation ‐ Citywide1,098,656525,000375,0003,267,683Traffic Signal ‐ Park & Ride Access Improvments777,2301,960,896Traffic Signal ‐ System Upgrade92,390581,900Ynez Road Improvements ‐ Phase I 2,000,000 2,000,000Ynez Road Improvements ‐ Phase II 619,451 1,665,0004,085,000 6,721,766TOTAL CIRCULATION PROJECTS 197,774,226 34,503,227 23,612,186 18,386,099 177,759,830 619,776,487ADA Compliance For Pavement Rehab Program ‐ West Side Business Park Area222,937456,600American With Disabilities Act (ADA) Transition Plan Implementation80,587323,660 323,660 323,660 323,6601,941,960Auto Mall Wayfinding Signs200,000200,000243,073323,660233,663163,265,7164,475,203INFRASTRUCTURE PROJECTS352,315489,5101,183,666804,027465,0001,371,957260,00010,593,9473,750,203350,000284 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Project Expenditure Summary2021‐22Amended2026‐27ProjectedBike Land and Trail Program ‐ Great Oak Trail Lighting 100,000 400,000Bike Lane And Trail Program ‐ Citywide308,149216,955 144,575 1,288,388 151,6642,485,523Bike Lane and Trail Program ‐ Infill Mini Pump Track300,000Bike Lane And Trail Program ‐ Mini Pump Track95,00095,000Bike Lane and Trail Program ‐ RRSP Trails360,000 1,740,0002,100,000Bike Lane And Trail Program ‐ Temecula Creek South Side Trail 167,84590,6343,841,4004,664,119Bike Lane Trail Program ‐ Pump Track545,839577,766City Facilities Rehabilitation2,743,666500,000750,000 1,000,000 1,000,0007,443,666City Facility Security100,000250,000Citywide Drainage Master Plan5,000725,000Citywide Financial System Upgrade500,0001,376,718Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit8,003,3118,003,311Citywide Surveillance Cameras3,299,623595,0004,491,785Community Recreation Center (CRC) Renovations510,0006,158,551 2,024,30410,708,232Comprehensive General Plan Update500,000 400,0002,210,0001,310,0002,015,377597,162876,718720,000450,0001,000,000150,00031,927564,240300,000213,238162,554300,000285 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Project Expenditure Summary2021‐22Amended2026‐27ProjectedElectric Vehicles Charging Station 47,000 98,929 486,929Fiber Optic Communication System Upgrade 113,0001,601,200Fiber Optic Communications Systems ‐ Citywide1,200,0002,400,000Fire Station 73 Gym/Garage250,00023,470 1,334,1171,864,497Fire Station 84 Training Room Renovation666,7501,641,028History Museum454,000454,000I‐15/State Route 79 South Interchange Enhanced Landscaping 441,350330,0003,558,483Library Parking ‐ Phase II3,269,4553,336,895Local Roadway Safety Plan18,00090,000Margarita Recreation Center8,041,7731,765,00012,601,508Mary Phillips Senior Center Emergency Generator185,000205,000Mary Phillips Senior Center Enhancement And Renovation 48,112 228,425 1,262,025Medians & Traffic Calming Improvements ‐ Citywide271,900270,000250,000976,900Murrieta Creek Improvements1,047,2341,252,234Nicolas Road Multi‐Use Trail Extension300,000450,000150,000205,000185,000985,48820,0002,794,73572,00067,4402,787,133974,2781,200,000256,9101,488,200341,000286 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Project Expenditure Summary2021‐22Amended2026‐27ProjectedOld Town Parking Structure 1,000,0001,000,000Old Town Surveillance & Sound System 360,000 1,260,000Pechanga Parkway Environmental Mitigation 837,236864,530Pedestrian Signal Equipment Upgrade ‐ Citywide68,0001,006,200RCWD Recycled Water Accelerated Retrofit Program40,000225,000Recycled Water Conversion Project206,119686,039Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension 2,294,4817,173,595Santa Gertrudis Creek Phase II ‐ Margarita Under‐Crossing 396,117314,0003,186,202Sidewalks ‐ Citywide1,111,533500,000500,000 500,000 500,0004,175,129Sidewalks ‐ DLR Drive188,599464,866Sidewalks ‐ Old Town Boardwalk Enhancement980,1231,132,564Sidewalks ‐ Old Town Improvements1,669,426300,0002,094,426Temecula Elementary School (TES) Pool Renovation135,100135,100Temecula Park & Ride3,482,0594,660,218The MERC Concession Upgrade604,000604,0001,178,159125,000152,441276,267563,596500,0002,476,0854,879,114479,920185,000938,200900,00027,294287 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Project Expenditure Summary2021‐22Amended2026‐27ProjectedTraffic Signal‐Promenade Mall Ring Road149,554494,000Urban Forest Management Plan27,300376,230Utility Undergrounding ‐ Citywide244,375244,375Utility Undergrounding ‐ Main Street and Vicinity1,044,0001,044,000TOTAL INFRASTRUCTURE PROJECTS43,917,00015,077,178 7,216,656 8,857,448 1,975,324111,436,853Children's Museum Enhancement Project545,090545,090Community Recreation Center Splash Pad & Shade Structures 100,0001,100,000Dog Park Renovation430,000Eagle Soar Splash Pad Control System Renovation200,000200,000Flood Control Channel Reconstruction & Repair1,447,711200,0004,743,6597,136,980Harveston Community Park Building Renovation and Expansion2,000,000 2,000,000Infill Recreational Amenities 400,000 400,000Murrieta Creek Regional Sports Park 1,500,000 5,500,000 8,000,000Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements 347,800 1,025,000 1,025,000 3,269,800Parks Improvement Program 2,074,000 350,000350,000 350,000 350,000 4,180,000Pickleball Courts 1,200,000 2,200,000Playground Equipment Enhancement & Safety Surfacing 3,880,000 500,000500,000 500,000 500,000 7,157,649777,649 500,0001,000,000356,000 350,0001,000,000872,000745,610430,0001,000,00032,407,033 1,986,214PARKS/RECREATION PROJECTS348,930344,446288 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Project Expenditure Summary2021‐22Amended2026‐27ProjectedRonald Reagan Sports Park Channel Silt Removal 699,986699,986Ronald Reagan Sports Park Hockey Rink 450,000 1,200,000Ronald Reagan Sports Park Pump Track Shade Structure75,000Ronald Reagan Sports Park Restroom Expansion & Renovation 825,0001,472,199Ronald Reagan Sports Park Skate Park1,000,000Sam Hicks Monument Park Perimeter Fencing 201,000266,000Sports Court Resurfacing 150,000 50,000 50,000 50,000 50,000 470,257Sports Field Lighting ‐ Light Emitting Diode (LED) Conversion 630,000 400,000500,000 400,000 400,000 2,830,000TOTAL PARKS/RECREATION PROJECTS11,100,5876,575,000 3,925,000 11,543,659 1,300,00044,632,961Habitat for Humanity Old Town Units1,058,0001,058,000Las Haciendas Affordable Housing Project10,130,000Vine Creek Affordable Housing Project6,710,000TOTAL SARDA PROJECTS1,058,00017,898,000TOTAL CAPITAL IMPROVEMENT PROGRAM 252,791,81357,213,405 34,753,842 38,787,206 181,035,154793,744,30116,840,000221,801,4647,361,4176,710,00010,130,000SARDA PROJECTS500,0009,288,715900,00065,00070,25750,000647,1991,000,000750,00075,000289 EXPENDITURE SUMMARY BY PROJECT TYPE PROJECTED EXPENDITURES: $793,744,301 City of Temecula Fiscal Year 2022-23 Annual Operating Budget 290 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost Assembly Bill 2766Bike Lane And Trail Program ‐ Citywide 218,419 210,934 216,955 144,575 143,830 151,664 162,554 1,248,931 Bike Lane And Trail Program ‐ Temecula Creek South Side Trail 67,845 ‐ ‐ ‐ ‐ ‐ ‐ 67,845 Citywide Buffered Bike Lane Striping 50,000 6,700 ‐ ‐ ‐ ‐ ‐ 56,700 Electric Vehicles Charging Station 47,000 ‐ ‐ ‐ ‐ ‐ ‐ 47,000 Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension 58,683 ‐ ‐ ‐ ‐ ‐ ‐ 58,683 Temecula Park & Ride 1,122,385 ‐ ‐ ‐ ‐ ‐ ‐ 1,122,385 Project Funding 1,564,332 217,634 216,955 144,575 143,830 151,664 162,554 2,601,544 Revenue Projection 1,736,633 147,230 150,175 153,178 156,242 159,366 162,554 Available Funding 172,301 101,897 35,117 43,720 56,132 63,834 63,834 Capital FinancingMargarita Recreation Center 6,405,000 ‐ ‐ ‐ ‐ ‐ ‐ 6,405,000 Project Funding 6,405,000 ‐ ‐ ‐ ‐ ‐ ‐ 6,405,000 Revenue Projection 6,405,000 ‐ ‐ ‐ ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ Community Facility DistrictsButterfield Stage Road Extension 38,401,739 635,201 ‐ ‐ ‐ ‐ ‐ 39,036,940 French Valley Parkway/I‐15 Improvements ‐ Phase II 1,005,840 ‐ ‐ ‐ ‐ ‐ ‐ 1,005,840 I‐15/State Route 79 South Ultimate Interchange 502,211 ‐ ‐ ‐ ‐ ‐ ‐ 502,211 City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding Source291 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceNicolas Road Extension & Improvements‐ 14,430,567 ‐ ‐ ‐ ‐ ‐ 14,430,567 Pechanga Parkway Environmental Mitigation 837,236 27,294 ‐ ‐ ‐ ‐ ‐ 864,530 Project Funding 40,747,026 15,093,062 ‐ ‐ ‐ ‐ ‐ 55,840,088 Revenue Projection 55,808,741 31,347 ‐ ‐ ‐ ‐ ‐ Available Funding 15,061,715 0 0 0 0 0 0 Development Impact Fees (DIF)DIF ‐ Corporate FacilitiesCity Facilities Rehabilitation 250,000 ‐ ‐ ‐ ‐ ‐ ‐ 250,000 Citywide Surveillance Cameras 754,925 (2,838)‐ ‐ ‐ ‐ ‐ 752,087 Old Town Surveillance & Sound System‐ 400,000 200,000 ‐ ‐ ‐ ‐ 600,000 Project Funding 1,004,925 397,162 200,000 ‐ ‐ ‐ ‐ 1,602,087 Revenue Projection 1,004,925 320,892 745,437 325,156 100,815 40,145 23,438 Available Funding‐ (76,270) 469,167 794,322 895,138 935,283 958,721 DIF ‐ Fire FacilitiesProject Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Revenue Projection 50,340 121,729 454,703 220,465 31,263 31,298 29,651 Available Funding 50,340 172,069 626,772 847,238 878,500 909,799 939,449 DIF ‐ LibraryLibrary Parking ‐ Phase II 2,194,486 67,440 ‐ ‐ ‐ ‐ ‐ 2,261,926 Project Funding 2,194,486 67,440 ‐ ‐ ‐ ‐ ‐ 2,261,926 Revenue Projection 2,318,699 434,398 793,517 553,413 181,923 69,306 37,976 Available Funding 124,213 491,171 1,284,688 1,838,102 2,020,024 2,089,331 2,127,306 DIF ‐ Open Space & TrailsBike Lane And Trail Program ‐ Citywide 69,873 2,304 ‐ ‐ ‐ ‐ ‐ 72,177 Bike Lane and Trail Program ‐ RRSP Trails‐ ‐ 360,000 690,000 ‐ ‐ ‐ 1,050,000 292 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceBike Lane Trail Program ‐ Pump Track 545,839 31,927 ‐ ‐ ‐ ‐ ‐ 577,766 Nicolas Road Multi‐Use Trail Extension 300,000 ‐ ‐ ‐ ‐ ‐ ‐ 300,000 Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension 389,073 ‐ ‐ ‐ ‐ ‐ ‐ 389,073 Project Funding 1,304,785 34,231 360,000 690,000 ‐ ‐ ‐ 2,389,016 Revenue Projection 1,319,557 176,212 530,751 373,512 43,817 43,868 41,558 Available Funding 14,772 156,753 327,504 11,015 54,833 98,700 140,258 DIF ‐ Parks & RecreationBike Lane And Trail Program ‐ Mini Pump Track 95,000 ‐ ‐ ‐ ‐ ‐ ‐ 95,000 Bike Lane and Trail Program ‐ RRSP Trails‐ ‐ ‐ 700,000 ‐ ‐ ‐ 700,000 Children's Museum Enhancement Project 145,090 ‐ ‐ ‐ ‐ ‐ ‐ 145,090 Community Recreation Center (CRC) Renovations 200,000 806,048 515,160 400,000 ‐ ‐ ‐ 1,921,208 Infill Recreational Amenities‐ ‐ 300,000 ‐ ‐ ‐ ‐ 300,000 Library Parking ‐ Phase II‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Margarita Recreation Center‐ 600,000 ‐ ‐ ‐ ‐ ‐ 600,000 Pickleball Courts‐ 250,000 1,200,000 ‐ ‐ ‐ ‐ 1,450,000 Playground Equipment Enhancement & Safety Surfacing 1,040,000 ‐ ‐ ‐ ‐ ‐ ‐ 1,040,000 Temecula Elementary School (TES) Pool Renovation 135,100 ‐ ‐ ‐ ‐ ‐ ‐ 135,100 Urban Forest Management Plan 27,300 25,000 ‐ ‐ ‐ ‐ ‐ 52,300 Project Funding 1,642,490 1,681,048 2,015,160 1,100,000 ‐ ‐ ‐ 6,438,698 Revenue Projection 2,869,087 604,538 1,820,875 1,281,430 150,331 150,502 142,579 Available Funding 1,226,597 150,087 (44,198) 137,232 287,563 438,065 580,644 DIF ‐ Police Facilities293 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceCitywide Surveillance Cameras 526,113 ‐ 595,000 ‐ ‐ ‐ ‐ 1,121,113 Emergency Vehicle Pre‐Emption Upgrade Program ‐ Citywide 251,565 100,435 ‐ ‐ ‐ ‐ ‐ 352,000 Library Parking ‐ Phase II 50,000 ‐ ‐ ‐ ‐ ‐ ‐ 50,000 Margarita Recreation Center‐ 137,000 ‐ ‐ ‐ ‐ ‐ 137,000 Temecula Park & Ride 100,000 ‐ ‐ ‐ ‐ ‐ ‐ 100,000 Project Funding 927,678 237,435 595,000 ‐ ‐ ‐ ‐ 1,760,113 Revenue Projection 1,003,630 161,558 466,300 239,548 13,163 13,178 12,484 Available Funding 75,952 75 (128,625) 110,923 124,086 137,264 149,748 QuimbyCommunity Recreation Center (CRC) Renovations 160,000 1,193,952 1,000,000 1,096,640 ‐ ‐ ‐ 3,450,592 Infill Recreational Amenities‐ ‐ 100,000 ‐ ‐ ‐ ‐ 100,000 Murrieta Creek Regional Sports Park‐ 1,000,000 ‐ ‐ ‐ ‐ ‐ 1,000,000 Parks Improvement Program 250,000 ‐ ‐ ‐ ‐ ‐ ‐ 250,000 Playground Equipment Enhancement & Safety Surfacing 440,000 ‐ ‐ ‐ ‐ ‐ ‐ 440,000 Project Funding 850,000 2,193,952 1,100,000 1,096,640 ‐ ‐ ‐ 5,240,592 Revenue Projection 1,881,804 2,108,253 1,330,512 8,835 8,835 8,835 8,835 Available Funding 1,031,804 946,105 1,176,617 88,812 97,647 106,482 115,317 DIF ‐ Street ImprovementsDiaz Road Expansion590 ‐ ‐ ‐ ‐ ‐ ‐ 590 French Valley Parkway/I‐15 Improvements ‐ Phase I 444,203 ‐ ‐ ‐ ‐ ‐ ‐ 444,203 French Valley Parkway/I‐15 Improvements ‐ Phase II 75,360 ‐ ‐ ‐ ‐ ‐ ‐ 75,360 Medians & Parkways ‐ Citywide 854,839 39,999 ‐ ‐ ‐ ‐ ‐ 894,838 294 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceMedians & Traffic Calming Improvements ‐ Citywide 40,000 ‐ ‐ ‐ ‐ ‐ ‐ 40,000 Murrieta Creek Bridge At Overland 2,010,960 ‐ ‐ 3,419,615 ‐ ‐ ‐ 5,430,575 Overland Drive Extension Commerce Center 8,082,475 ‐ ‐ ‐ ‐ ‐ ‐ 8,082,475 Overland Drive Widening 352,000 350,000 852,020 ‐ ‐ ‐ ‐ 1,554,020 Rancho California Road Median Improvements‐ ‐ 395,800 115,000 587,000 ‐ ‐ 1,097,800 Roundabout Improvements On Ynez Road 270,000 ‐ ‐ ‐ ‐ ‐ ‐ 270,000 Ynez Road Improvements ‐ Phase I‐ ‐ 2,000,000 ‐ ‐ ‐ ‐ 2,000,000 Ynez Road Improvements ‐ Phase II 619,451 352,315 1,665,000 ‐ ‐ ‐ ‐ 2,636,766 Project Funding 12,749,878 742,314 4,912,820 3,534,615 587,000 ‐ ‐ 22,526,627 Revenue Projection 13,586,697 1,555,843 6,468,531 1,267,141 91,085 91,189 86,388 Available Funding 836,819 1,650,348 3,206,059 938,585 442,670 533,859 620,247 DIF ‐ Traffic SignalsFlashing Beacons & Speed Advisory Signs 81,284 ‐ ‐ ‐ ‐ ‐ ‐ 81,284 Traffic Signal ‐ Equipment Enhancement Program ‐ Citywide 519,831 21,957 ‐ ‐ ‐ ‐ ‐ 541,788 Traffic Signal ‐ Installation ‐ Citywide 701,892 305,791 375,000 ‐ 375,000 ‐ 300,000 2,057,683 Project Funding 1,303,007 327,748 375,000 ‐ 375,000 ‐ 300,000 2,680,755 Revenue Projection 1,507,489 223,153 931,834 181,589 12,894 12,908 12,229 Available Funding 204,482 99,887 656,721 838,310 476,203 489,112 201,341 DIF Total Project Funding 21,977,249 5,681,330 9,557,980 6,421,255 962,000 ‐ 300,000 44,899,814 DIF Total Revenue Projection 25,542,228 5,706,575 13,542,461 4,451,089 634,125 461,230 395,136 DIF Total Available Funding 3,564,979 3,590,224 7,574,704 5,604,539 5,276,664 5,737,895 5,833,031 Facilities Replacement Fund295 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceCity Facilities Rehabilitation 743,666 450,000 500,000 750,000 1,000,000 1,000,000 1,000,000 5,443,666 Mary Phillips Senior Center Enhancement And Renovation‐ 279,694 ‐ ‐ ‐ ‐ ‐ 279,694 Project Funding 743,666 729,694 500,000 750,000 1,000,000 1,000,000 1,000,000 5,723,360 Revenue Projection 1,126,435 346,925 500,000 750,000 1,000,000 1,000,000 1,000,000 Available Funding 382,769 ‐ ‐ ‐ ‐ ‐ ‐ General FundCity Facilities Rehabilitation 1,750,000 ‐ ‐ ‐ ‐ ‐ ‐ 1,750,000 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 2,503,311 ‐ ‐ ‐ ‐ ‐ ‐ 2,503,311 Comprehensive General Plan Update‐ 500,000 500,000 400,000 ‐ ‐ ‐ 1,400,000 Flood Control Channel Reconstruction & Repair 650,284 ‐ ‐ ‐ ‐ ‐ ‐ 650,284 French Valley Parkway/I‐15 Improvements ‐ Phase I 981,697 ‐ ‐ ‐ ‐ ‐ ‐ 981,697 French Valley Parkway/I‐15 Improvements ‐ Phase II 4,236,174 ‐ ‐ ‐ ‐ ‐ ‐ 4,236,174 French Valley Parkway/I‐15 Improvements ‐ Phase III 30,000 ‐ ‐ ‐ ‐ ‐ ‐ 30,000 I‐15 Congestion Relief 1,351,725 190,542 ‐ 79,443 ‐ ‐ ‐ 1,621,710 Library Parking ‐ Phase II 37,627 ‐ ‐ ‐ ‐ ‐ ‐ 37,627 Murrieta Creek Improvements 135,858 ‐ ‐ ‐ ‐ ‐ ‐ 135,858 Old Town Parking Structure 1,000,000 ‐ ‐ ‐ ‐ ‐ ‐ 1,000,000 Overland Drive Extension Commerce Center 235,422 ‐ ‐ ‐ ‐ ‐ ‐ 235,422 Parks Improvement Program 1,003,059 ‐ ‐ ‐ ‐ ‐ ‐ 1,003,059 Pavement Rehabilitation Program ‐ Citywide 5,692,614 ‐ ‐ ‐ ‐ ‐ ‐ 5,692,614 296 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceRecycled Water Conversion Project‐ 55,697 ‐ ‐ ‐ ‐ ‐ 55,697 Ronald Reagan Sports Park Channel Silt Removal 461,366 ‐ ‐ ‐ ‐ ‐ ‐ 461,366 Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension 78,920 ‐ ‐ ‐ ‐ ‐ ‐ 78,920 Sidewalks ‐ Citywide 375,000 ‐ ‐ ‐ ‐ ‐ ‐ 375,000 Sidewalks ‐ DLR Drive 188,599 276,267 ‐ ‐ ‐ ‐ ‐ 464,866 Temecula Park & Ride 1,129,802 ‐ ‐ ‐ ‐ ‐ ‐ 1,129,802 Traffic Signal ‐ Park & Ride Access Improvments 226,725 ‐ ‐ ‐ ‐ ‐ ‐ 226,725 Project Funding 22,068,183 1,022,506 500,000 479,443 ‐ ‐ ‐ 24,070,132 Revenue Projection 22,068,183 1,022,506 500,000 479,443 ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ Grants ‐ FederalADA Compliance For Pavement Rehab Program ‐ West Side Business Park Area 79,337 233,663 ‐ ‐ ‐ ‐ ‐ 313,000 American With Disabilities Act (ADA) Transition Plan Implementation 80,587 243,073 323,660 323,660 323,660 323,660 323,660 1,941,960 French Valley Parkway/I‐15 Improvements ‐ Phase II‐ 51,602,360 ‐ ‐ ‐ ‐ ‐ 51,602,360 I‐15/State Route 79 South Ultimate Interchange 13,475,050 940,789 ‐ ‐ ‐ ‐ ‐ 14,415,839 Mary Phillips Senior Center Enhancement And Renovation 18,112 705,794 ‐ ‐ ‐ ‐ ‐ 723,906 Murrieta Creek Bridge At Overland 270,830 210,393 4,450,296 14,711,280 ‐ ‐ ‐ 19,642,799 Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension 223,311 ‐ ‐ ‐ ‐ ‐ ‐ 223,311 Sidewalks ‐ Old Town Boardwalk Enhancement 385,596 152,441 ‐ ‐ ‐ ‐ ‐ 538,037 Sidewalks ‐ Old Town Improvements 849,426 ‐ ‐ ‐ ‐ ‐ ‐ 849,426 297 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceTemecula Park & Ride 729,872 1,178,159 ‐ ‐ ‐ ‐ ‐ 1,908,031 Project Funding 16,112,122 55,266,672 4,773,956 15,034,940 323,660 323,660 323,660 92,158,669 Revenue Projection 16,112,122 55,266,672 4,773,956 15,034,940 323,660 323,660 323,660 Available Funding0 0 0 0 0 0 0 Grants ‐ State & LocalBike Lane And Trail Program ‐ Citywide 19,857 ‐ ‐ ‐ ‐ ‐ ‐ 19,857 Citywide Buffered Bike Lane Striping 115,278 17,022 ‐ ‐ ‐ ‐ ‐ 132,300 Comprehensive General Plan Update‐ 810,000 ‐ ‐ ‐ ‐ ‐ 810,000 Dog Park Renovation‐ 247,126 ‐ ‐ ‐ ‐ ‐ 247,126 Electric Vehicles Charging Station‐ 141,000 ‐ ‐ ‐ ‐ ‐ 141,000 Fiber Optic Communication System Upgrade‐ 1,208,200 ‐ ‐ ‐ ‐ ‐ 1,208,200 French Valley Parkway/I‐15 Improvements ‐ Phase II‐ 47,600,000 ‐ ‐ ‐ ‐ ‐ 47,600,000 I‐15 Congestion Relief‐ ‐ 1,250,000 ‐ ‐ ‐ ‐ 1,250,000 I‐15/State Route 79 South Ultimate Interchange 14,446,520 140,000 20,000 ‐ ‐ ‐ ‐ 14,606,520 Local Roadway Safety Plan‐ 72,000 ‐ ‐ ‐ ‐ ‐ 72,000 Mary Phillips Senior Center Emergency Generator 185,000 ‐ ‐ ‐ ‐ ‐ ‐ 185,000 Pedestrian Signal Equipment Upgrade ‐ Citywide‐ 908,200 ‐ ‐ ‐ ‐ ‐ 908,200 Recycled Water Conversion Project 64,109 361,920 ‐ ‐ ‐ ‐ ‐ 426,029 Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension 722,595 3,036,405 ‐ ‐ ‐ ‐ ‐ 3,759,000 Santa Gertrudis Creek Phase II ‐ Margarita Under‐Crossing‐ 1,502,000 ‐ ‐ ‐ ‐ ‐ 1,502,000 Traffic Signal ‐ System Upgrade‐ 489,510 ‐ ‐ ‐ ‐ ‐ 489,510 298 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceUrban Forest Management Plan‐ 323,930 ‐ ‐ ‐ ‐ ‐ 323,930 Project Funding 15,553,360 56,857,312 1,270,000 ‐ ‐ ‐ ‐ 73,680,672 Revenue Projection 15,553,360 56,857,312 1,270,000 ‐ ‐ ‐ ‐ Available Funding0 0 0 0 0 0 0 Measure AADA Compliance For Pavement Rehab Program ‐ West Side Business Park Area 143,600 ‐ ‐ ‐ ‐ ‐ ‐ 143,600 Diaz Road Expansion‐ 1,000,000 2,575,000 ‐ ‐ ‐ ‐ 3,575,000 French Valley Parkway/I‐15 Improvements ‐ Phase I 2,869,351 ‐ ‐ ‐ ‐ ‐ ‐ 2,869,351 French Valley Parkway/I‐15 Improvements ‐ Phase II 1,627,914 ‐ ‐ ‐ ‐ ‐ ‐ 1,627,914 Overland Drive Widening‐ ‐ ‐ 1,340,400 ‐ ‐ ‐ 1,340,400 Pavement Rehabilitation Program ‐ Citywide 16,646,857 6,575,889 ‐ 289,980 1,220,380 1,256,380 1,294,071 27,283,557 Sidewalks ‐ Old Town Improvements 140,000 ‐ ‐ ‐ ‐ ‐ ‐ 140,000 Project Funding 21,427,722 7,575,889 2,575,000 1,630,380 1,220,380 1,256,380 1,294,071 36,979,822 Revenue Projection 31,692,907 2,123,380 2,165,848 2,209,165 2,253,348 2,298,415 2,344,383 Available Funding 10,265,185 4,812,676 4,403,524 4,982,308 6,015,276 7,057,311 8,107,623 299 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding Source Measure S Auto Mall Wayfinding Signs ‐ ‐ 200,000 ‐ ‐ ‐ ‐ 200,000 Bike Lane and Trail Program ‐ Infill Mini Pump Track ‐ 300,000 ‐ ‐ ‐ ‐ ‐ 300,000 Bike Lane and Trail Program ‐ RRSP Trails ‐ ‐ ‐ 350,000 ‐ ‐ ‐ 350,000 Bike Lane And Trail Program ‐ Temecula Creek South Side Trail 100,000 564,240 90,634 ‐ ‐ ‐ ‐ 754,874 Cherry Street Extension & Murrieta Creek Low‐Flow Crossing 500,000 169,300 130,000 ‐ ‐ ‐ ‐ 799,300 Children's Museum Enhancement Project 400,000 ‐ ‐ ‐ ‐ ‐ ‐ 400,000 City Facility Security 100,000 150,000 ‐ ‐ ‐ ‐ ‐ 250,000 Citywide Drainage Master Plan ‐ 720,000 5,000 ‐ ‐ ‐ ‐ 725,000 Citywide Financial System Upgrade 500,000 113,184 ‐ ‐ ‐ ‐ ‐ 613,184 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 5,500,000 ‐ ‐ ‐ ‐ ‐ ‐ 5,500,000 Citywide Surveillance Cameras 2,018,585 600,000 ‐ ‐ ‐ ‐ ‐ 2,618,585 Community Recreation Center (CRC) Renovations 150,000 15,377 3,893,391 527,664 ‐ ‐ ‐ 4,586,432 Community Recreation Center Splash Pad & Shade Structures 100,000 1,000,000 ‐ ‐ ‐ ‐ ‐ 1,100,000 Diaz Road Expansion 162,923 8,522 1,328,555 ‐ ‐ ‐ ‐ 1,500,000 Dog Park Renovation ‐ 182,874 ‐ ‐ ‐ ‐ ‐ 182,874 Eagle Soar Splash Pad Control System Renovation 200,000 ‐ ‐ ‐ ‐ ‐ ‐ 200,000 Fiber Optic Communication System Upgrade 113,000 280,000 ‐ ‐ ‐ ‐ ‐ 393,000 Fiber Optic Communications Systems ‐ Citywide ‐ 1,200,000 ‐ ‐ ‐ ‐ ‐ 1,200,000 300 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceFire Station 73 Gym/Garage 250,000 256,910 23,470 1,334,117 ‐ ‐ ‐ 1,864,497 Fire Station 84 Training Room Renovation 666,750 974,278 ‐ ‐ ‐ ‐ ‐ 1,641,028 Flashing Beacons & Speed Advisory Signs 194,000 32,000 ‐ 32,000 ‐ 32,000 ‐ 290,000 Flood Control Channel Reconstruction & Repair 797,427 745,610 200,000 ‐ ‐ ‐ ‐ 1,743,037 French Valley Parkway/I‐15 Improvements ‐ Phase I 65,000 ‐ ‐ ‐ ‐ ‐ ‐ 65,000 French Valley Parkway/I‐15 Improvements ‐ Phase II 454,000 4,807,585 300,000 300,000 170,000 ‐ ‐ 6,031,585 French Valley Parkway/I‐15 Improvements ‐ Phase III 150,000 ‐ 227,000 ‐ ‐ ‐ ‐ 377,000 History Museum‐ ‐ ‐ ‐ 454,000 ‐ ‐ 454,000 I‐15/State Route 79 South Interchange Enhanced Landscaping 441,350 287,133 330,000 ‐ ‐ ‐ ‐ 1,058,483 Infill Recreational Amenities‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Library Parking ‐ Phase II 987,342 ‐ ‐ ‐ ‐ ‐ ‐ 987,342 Local Roadway Safety Plan 18,000 ‐ ‐ ‐ ‐ ‐ ‐ 18,000 Margarita Recreation Center 1,636,773 2,057,735 1,765,000 ‐ ‐ ‐ ‐ 5,459,508 Mary Phillips Senior Center Emergency Generator‐ 20,000 ‐ ‐ ‐ ‐ ‐ 20,000 Mary Phillips Senior Center Enhancement And Renovation 30,000 ‐ 228,425 ‐ ‐ ‐ ‐ 258,425 Medians & Traffic Calming Improvements ‐ Citywide 231,900 160,000 270,000 ‐ 250,000 ‐ ‐ 911,900 Murrieta Creek Bridge At Overland‐ 1,000,000 ‐ ‐ ‐ ‐ ‐ 1,000,000 Murrieta Creek Improvements 53,791 ‐ ‐ ‐ ‐ ‐ ‐ 53,791 Murrieta Creek Regional Sports Park‐ ‐ ‐ 1,500,000 ‐ ‐ ‐ 1,500,000 Nicolas Road Multi‐Use Trail Extension‐ 150,000 ‐ ‐ ‐ ‐ ‐ 150,000 301 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceOld Town Surveillance & Sound System‐ 500,000 160,000 ‐ ‐ ‐ ‐ 660,000 Overhead Street Name Sign Replacement Program ‐ Citywide 100,000 225,000 ‐ ‐ ‐ ‐ ‐ 325,000 Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements 347,800 872,000 1,025,000 1,025,000 ‐ ‐ ‐ 3,269,800 Parks Improvement Program 764,000 356,000 350,000 350,000 350,000 350,000 350,000 2,870,000 Pavement Rehabilitation Program ‐ Citywide 2,000,000 ‐ ‐ ‐ ‐ ‐ ‐ 2,000,000 Pedestrian Signal Equipment Upgrade ‐ Citywide 68,000 30,000 ‐ ‐ ‐ ‐ ‐ 98,000 Pickleball Courts‐ 750,000 ‐ ‐ ‐ ‐ ‐ 750,000 Playground Equipment Enhancement & Safety Surfacing 2,400,000 777,649 500,000 500,000 500,000 500,000 500,000 5,677,649 Rainbow Canyon Road Pavement Rehabilitation‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Rancho California Road Median Improvements‐ ‐ 150,000 ‐ ‐ ‐ ‐ 150,000 RCWD Recycled Water Accelerated Retrofit Program‐ 15,000 40,000 ‐ ‐ ‐ ‐ 55,000 Recycled Water Conversion Project 142,010 ‐ ‐ ‐ ‐ ‐ ‐ 142,010 Ronald Reagan Sports Park Hockey Rink‐ 750,000 450,000 ‐ ‐ ‐ ‐ 1,200,000 Ronald Reagan Sports Park Pump Track Shade Structure‐ 75,000 ‐ ‐ ‐ ‐ ‐ 75,000 Ronald Reagan Sports Park Restroom Expansion & Renovation 825,000 647,199 ‐ ‐ ‐ ‐ ‐ 1,472,199 Ronald Reagan Sports Park Skate Park‐ 1,000,000 ‐ ‐ ‐ ‐ ‐ 1,000,000 Sam Hicks Monument Park Perimeter Fencing 201,000 65,000 ‐ ‐ ‐ ‐ ‐ 266,000 Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension 821,899 1,842,709 ‐ ‐ ‐ ‐ ‐ 2,664,608 302 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceSanta Gertrudis Creek Phase II ‐ Margarita Under‐Crossing 396,117 974,085 314,000 ‐ ‐ ‐ ‐ 1,684,202 Sidewalks ‐ Citywide 736,533 563,596 500,000 500,000 500,000 500,000 500,000 3,800,129 Sidewalks ‐ Old Town Boardwalk Enhancement 594,527 ‐ ‐ ‐ ‐ ‐ ‐ 594,527 Sidewalks ‐ Old Town Improvements 680,000 125,000 300,000 ‐ ‐ ‐ ‐ 1,105,000 Sports Court Resurfacing 150,000 70,257 50,000 50,000 50,000 50,000 50,000 470,257 Sports Field Lighting ‐ Light Emitting Diode (LED) Conversion 630,000 300,000 400,000 400,000 400,000 400,000 ‐ 2,530,000 Temecula Park & Ride 400,000 ‐ ‐ ‐ ‐ ‐ ‐ 400,000 The MERC Concession Upgrade ‐ ‐ 604,000 ‐ ‐ ‐ ‐ 604,000 Traffic Signal ‐ Equipment Enhancement Program ‐ Citywide 315,000 1,350,000 150,000 260,000 260,000 260,000 260,000 2,855,000 Traffic Signal ‐ Installation ‐ Citywide 150,000 495,000 150,000 ‐ ‐ ‐ 165,000 960,000 Traffic Signal ‐ Park & Ride Access Improvments 50,505 1,008,666 ‐ ‐ ‐ ‐ ‐ 1,059,171 Traffic Signal ‐ System Upgrade 92,390 ‐ ‐ ‐ ‐ ‐ ‐ 92,390 Traffic Signal‐Promenade Mall Ring Road ‐ 300,000 149,554 ‐ ‐ ‐ ‐ 449,554 Utility Undergrounding ‐ Citywide 244,375 ‐ ‐ ‐ ‐ ‐ ‐ 244,375 Utility Undergrounding ‐ Main Street and Vicinity ‐ ‐ 658,060 ‐ ‐ ‐ ‐ 658,060 Project Funding 27,929,997 28,886,909 14,942,089 7,128,781 2,934,000 2,092,000 1,825,000 85,738,776 Revenue Projection 53,445,600 3,386,306 15,286,089 8,018,781 8,480,000 2,092,000 1,825,000 Available Funding 25,515,603 15,000 359,000 1,249,000 6,795,000 6,795,000 6,795,000 303 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceProp 42/Road Maintenance and Rehabilitation Account (RMRA)Pavement Rehabilitation Program ‐ Citywide 6,254,005 3,790,721 2,269,086 2,314,468 2,360,757 2,407,972 2,456,132 21,853,141 Ronald Reagan Sports Park Channel Silt Removal 88,000 ‐ ‐ ‐ ‐ ‐ ‐ 88,000 Project Funding 6,342,005 3,790,721 2,269,086 2,314,468 2,360,757 2,407,972 2,456,132 21,941,141 Revenue Projection 7,927,335 2,350,019 2,397,019 2,444,960 2,493,859 2,543,736 2,594,611 Available Funding 1,585,330 144,628 272,561 403,053 536,155 671,919 810,398 Public Art FundRoundabout Improvements On Ynez Road 25,000 ‐ ‐ ‐ ‐ ‐ ‐ 25,000 Project Funding 25,000 ‐ ‐ ‐ ‐ ‐ ‐ 25,000 Revenue Projection 116,099 14,800 17,850 12,750 9,050 1,900 ‐ Available Funding 91,099 105,899 123,749 136,499 145,549 147,449 147,449 Reimbursements/OtherButterfield Stage Road Extension 932,090 ‐ ‐ ‐ ‐ ‐ ‐ 932,090 Butterfield Stage Road Storm Drain Improvements‐ ‐ 7,008,270 ‐ ‐ ‐ ‐ 7,008,270 Community Recreation Center (CRC) Renovations‐ ‐ 750,000 ‐ ‐ ‐ ‐ 750,000 French Valley Parkway/I‐15 Improvements ‐ Phase II 6,008,000 ‐ ‐ ‐ ‐ ‐ ‐ 6,008,000 Harveston Community Park Building Renovation and Expansion‐ ‐ 2,000,000 ‐ ‐ ‐ ‐ 2,000,000 I‐15 Congestion Relief 100,000 2,500,000 ‐ ‐ ‐ ‐ ‐ 2,600,000 304 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceI‐15/State Route 79 South Interchange Enhanced Landscaping ‐ 2,500,000 ‐ ‐ ‐ ‐ ‐ 2,500,000 I‐15/State Route 79 South Ultimate Interchange 1,928,282 695,560 ‐ ‐ ‐ ‐ ‐ 2,623,842 Medians & Traffic Calming Improvements ‐ Citywide ‐ 25,000 ‐ ‐ ‐ ‐ ‐ 25,000 Murrieta Creek Improvements 857,585 5,000 ‐ ‐ ‐ ‐ ‐ 862,585 Nicolas Road Extension & Improvements ‐ 7,754,093 ‐ ‐ ‐ ‐ ‐ 7,754,093 Parks Improvement Program 56,941 ‐ ‐ ‐ ‐ ‐ ‐ 56,941 Pavement Rehabilitation Program ‐ Citywide 36,000 227,337 ‐ ‐ ‐ ‐ ‐ 263,337 Pechanga Parkway Widening 5,000,000 ‐ ‐ ‐ ‐ ‐ ‐ 5,000,000 Rainbow Canyon Road Pavement Rehabilitation ‐ ‐ 1,150,000 ‐ ‐ ‐ ‐ 1,150,000 Rancho California Road Median Improvements ‐ ‐ 57,200 ‐ ‐ ‐ ‐ 57,200 RCWD Recycled Water Accelerated Retrofit Program ‐ 170,000 ‐ ‐ ‐ ‐ ‐ 170,000 Ronald Reagan Sports Park Channel Silt Removal 150,620 ‐ ‐ ‐ ‐ ‐ ‐ 150,620 Roundabout Improvements On Ynez Road 540,000 ‐ ‐ ‐ ‐ ‐ ‐ 540,000 Santa Gertrudis Creek Phase II ‐ Margarita Under‐Crossing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Traffic Signal ‐ Installation ‐ Citywide 246,764 3,236 ‐ ‐ ‐ ‐ ‐ 250,000 Traffic Signal ‐ Park & Ride Access Improvments 500,000 175,000 ‐ ‐ ‐ ‐ ‐ 675,000 Traffic Signal‐Promenade Mall Ring Road ‐ 44,446 ‐ ‐ ‐ ‐ ‐ 44,446 Utility Undergrounding ‐ Main Street and Vicinity ‐ ‐ 385,940 ‐ ‐ ‐ ‐ 385,940 Vine Creek Affordable Housing Project ‐ 4,000,000 ‐ ‐ ‐ ‐ ‐ 4,000,000 Project Funding 16,356,282 18,099,672 11,351,410 ‐ ‐ ‐ ‐ 45,807,364 Revenue Projection 16,356,282 18,099,672 11,351,410 ‐ ‐ ‐ ‐ Available Funding (0) ‐ ‐ ‐ ‐ ‐ ‐ 305 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceService Level C ‐ Zone 16Recycled Water Conversion Project‐ 21,500 ‐ ‐ ‐ ‐ ‐ 21,500 Project Funding‐ 21,500 ‐ ‐ ‐ ‐ ‐ 21,500 Revenue Projection‐ 21,500 ‐ ‐ ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ Service Level C ‐ Zone 18Recycled Water Conversion Project‐ 10,000 ‐ ‐ ‐ ‐ ‐ 10,000 Project Funding‐ 10,000 ‐ ‐ ‐ ‐ ‐ 10,000 Revenue Projection‐ 10,000 ‐ ‐ ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ Service Level C ‐ Zone 20Recycled Water Conversion Project‐ 30,803 ‐ ‐ ‐ ‐ ‐ 30,803 Project Funding‐ 30,803 ‐ ‐ ‐ ‐ ‐ 30,803 Revenue Projection‐ 30,803 ‐ ‐ ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ Service Level C ‐ Zone 28Bike Land and Trail Program ‐ Great Oak Trail Lighting‐ 300,000 100,000 ‐ ‐ ‐ ‐ 400,000 Project Funding‐ 300,000 100,000 ‐ ‐ ‐ ‐ 400,000 Revenue Projection‐ 300,000 100,000 ‐ ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ 306 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceSuccessor AgencyFrench Valley Parkway/I‐15 Improvements ‐ Phase III‐ 1,669,794 ‐ ‐ ‐ ‐ ‐ 1,669,794 Habitat for Humanity ‐ Old Town Units‐ ‐ 1,058,000 1,058,000 Las Haciendas Affordable Housing Project‐ 9,629,143 ‐ ‐ ‐ ‐ ‐ 9,629,143 Motor Car Parkway Improvements‐ ‐ ‐ 750,000 ‐ ‐ ‐ 750,000 Vine Creek Affordable Housing Project‐ 2,710,000 ‐ ‐ ‐ ‐ ‐ 2,710,000 Project Funding‐ 14,008,937 1,058,000 750,000 ‐ ‐ ‐ 15,816,937 Revenue Projection‐ 14,008,937 1,058,000 750,000 ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ ‐ ‐ ‐ TEAM FundElectric Vehicles Charging Station‐ 200,000 98,929 ‐ ‐ ‐ ‐ 298,929 Murrieta Creek Improvements‐ 200,000 ‐ ‐ ‐ ‐ ‐ 200,000 Sports Field Lighting ‐ Light Emitting Diode (LED) Conversion‐ 200,000 ‐ 100,000 ‐ ‐ ‐ 300,000 Project Funding‐ 600,000 98,929 100,000 ‐ ‐ ‐ 798,929 Revenue Projection 839,738 ‐ ‐ ‐ ‐ ‐ ‐ Available Funding 839,738 239,738 140,809 40,809 40,809 40,809 40,809 Technology Replacement FundCitywide Financial System Upgrade‐ 763,534 ‐ ‐ ‐ ‐ ‐ 763,534 Project Funding‐ 763,534 ‐ ‐ ‐ ‐ ‐ 763,534 Revenue Projection 2,060,546 466,488 ‐ ‐ ‐ ‐ ‐ Available Funding 2,060,546 1,763,500 1,763,500 1,763,500 1,763,500 1,763,500 1,763,500 307 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceTransporation Uniform Mitigation Fee (TUMF)Butterfield Stage Road Extension 1,438,000 ‐ ‐ ‐ ‐ ‐ ‐ 1,438,000 Diaz Road Expansion 331,096 734,827 4,500,000 ‐ ‐ ‐ ‐ 5,565,923 French Valley Parkway/I‐15 Improvements ‐ Phase I 24,133,317 254,464 ‐ ‐ ‐ ‐ ‐ 24,387,781 French Valley Parkway/I‐15 Improvements ‐ Phase II 14,265,953 6,283,160 ‐ ‐ ‐ ‐ ‐ 20,549,113 French Valley Parkway/I‐15 Improvements ‐ Phase III‐ 1,500,000 ‐ ‐ ‐ ‐ ‐ 1,500,000 I‐15 Congestion Relief‐ ‐ 3,500,000 ‐ ‐ ‐ ‐ 3,500,000 I‐15/State Route 79 South Ultimate Interchange 15,371,504 3,571,981 ‐ ‐ ‐ ‐ ‐ 18,943,485 Project Funding 55,539,870 12,344,432 8,000,000 ‐ ‐ ‐ ‐ 75,884,302 Revenue Projection 55,539,870 12,344,432 8,000,000 ‐ ‐ ‐ ‐ Available Funding(0)‐ ‐ ‐ ‐ ‐ ‐ Uptown Temecula New Streets In Lieu FeeLas Haciendas Affordable Housing Project‐ 500,857 ‐ ‐ ‐ ‐ ‐ 500,857 Project Funding‐ 500,857 ‐ ‐ ‐ ‐ ‐ 500,857 Revenue Projection 895,391 226,156 98,400 381,840 ‐ ‐ ‐ Available Funding 895,391 620,690 719,090 1,100,930 1,100,930 1,100,930 1,100,930 Total Project Funding 252,791,813 221,801,464 57,213,405 34,753,842 8,944,627 7,231,676 7,361,417 590,098,244 Total Revenue Projection 313,226,470 172,761,060 61,211,207 34,686,146 15,350,284 8,880,308 8,645,344 614,760,819 Total Available Funding 60,434,657 11,394,253 15,392,055 15,324,359 21,730,016 23,378,648 24,662,575 308 Funding Source ‐ Project Name Prior Years Actuals 2021‐22Amended 2022‐23 Proposed Budget 2023‐24Projected 2024‐25Projected 2025‐26Projected 2026‐27Projected TotalProjectCost City of TemeculaFiscal Year 2022-23Annual Operating Budget Capital Projects Summary ‐ By Funding SourceUnspecifiedBike Lane And Trail Program ‐ Citywide‐ ‐ ‐ ‐ 1,144,558 ‐ ‐ 1,144,558 Bike Lane And Trail Program ‐ Temecula Creek South Side Trail‐ ‐ ‐ ‐ 3,841,400 ‐ ‐ 3,841,400 Cherry Street Extension & Murrieta Creek Low‐Flow Crossing‐ ‐ ‐ ‐ 1,958,962 34,490,000 ‐ 36,448,962 Diaz Road Expansion‐ ‐ ‐ ‐ ‐ 3,614,478 ‐ 3,614,478 Fiber Optic Communications Systems ‐ Citywide‐ ‐ ‐ ‐ 1,200,000 ‐ ‐ 1,200,000 Flood Control Channel Reconstruction & Repair‐ ‐ ‐ ‐ 4,743,659 ‐ ‐ 4,743,659 French Valley Parkway/I‐15 Improvements ‐ Phase III‐ ‐ ‐ ‐ 8,954,000 131,564,000 ‐ 140,518,000 Murrieta Creek Regional Sports Park‐ ‐ ‐ ‐ 5,500,000 ‐ ‐ 5,500,000 Rancho California Road Median Improvements‐ ‐ ‐ ‐ 2,500,000 50,000 ‐ 2,550,000 Ynez Road Improvements ‐ Phase II‐ ‐ ‐ ‐ ‐ 4,085,000 ‐ 4,085,000 Project Funding‐ ‐ ‐ ‐ 29,842,579 173,803,478 ‐ 203,646,057 Revenue Projection‐ ‐ ‐ ‐ ‐ ‐ ‐ Available Funding‐ ‐ ‐ ‐ (29,842,579) (203,646,057) (203,646,057)Grand Total Project Funding 252,791,813 221,801,464 57,213,405 34,753,842 38,787,206 181,035,154 7,361,417 793,744,301 Grand Total Revenue Projection 313,226,470 172,761,060 61,211,207 34,686,146 15,350,284 8,880,308 8,645,344 614,760,819 Grand Total Available Funding 60,434,657 11,394,253 15,392,055 15,324,359 (8,112,563) (180,267,409) (178,983,482)309 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostButterfield Stage Road Extension 38,401,73939,036,940932,090932,0901,438,0001,438,00040,771,82941,407,030Butterfield Stage Road Storm Drain Improvements4,008,270 4,008,2703,000,000 3,000,0007,008,270 7,008,270Cherry Street Extension & Murrieta Creek Low‐Flow Crossing 500,000 130,000 799,3001,958,962 34,490,000 36,448,962500,000 130,000 1,958,962 34,490,000 37,248,262Citywide Buffered Bike Lane Striping50,00056,700115,278132,300165,278189,000Diaz Road Expansion 5905902,575,000 3,575,000162,923 1,328,555 1,500,000331,096 4,500,000 5,565,9233,614,478 3,614,478494,6098,403,5553,614,47814,255,991Emergency Vehicle Pre‐Emption Upgrade Program ‐ Citywide251,565352,000Flashing Beacons & Speed Advisory Signs81,28481,284194,00032,00032,000290,000275,28432,00032,000371,284City of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectTotal 32,000DIF‐Traffic SignalsMeasure S 32,000Total 1,743,349DIF‐Police Facilities 100,435TUMF (WRCOG) 734,827UnspecifiedMeasure A 1,000,000Measure S 8,522Total 23,722DIF‐Street ImprovementsAssembly Bill 2766 6,700Senate Bill 821 17,022UnspecifiedTotal 169,300Total Measure S 169,300County AD 159ReimbursementsTUMFTotal 635,201CIRCULATION PROJECTSCFD 03‐02 (Roripaugh Ranch) 635,201ReimbursementsFunding Source2021‐22Amended2026‐27Projected310 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedFrench Valley Parkway/I‐15 Improvements ‐ Phase I444,203444,203981,697981,6972,869,3512,869,35165,00065,00018,450,05318,527,4905,174,0005,174,000509,264686,29128,493,56828,748,032French Valley Parkway/I‐15 Improvements ‐ Phase II1,005,8401,005,84075,36075,3604,236,1744,236,17450,000,0001,627,9141,627,914454,000300,000 300,000 170,0006,031,5856,008,0006,008,0001,602,36047,600,000472,8411,472,5092,343,0002,343,00011,450,11216,733,60427,673,241300,000 300,000 170,000138,736,346French Valley Parkway/I‐15 Improvements ‐ Phase III30,00030,000150,000227,000377,0001,669,7941,500,0008,954,000 131,564,000140,518,000180,000227,0008,954,000 131,564,000144,094,794I‐15 Congestion Relief1,351,72579,4431,621,7102,500,000100,000100,0001,250,0001,250,0003,500,0003,500,0001,451,7254,750,000 79,4438,971,710I‐15/State Route 79 South Ultimate Interchange502,211502,211737,7001,433,260CFD 03‐01 (Crowne Hill)Reimbursements695,560TUMF (CETAP/RCTC)Total 2,690,542ReimbursementsSHOPPGeneral Fund190,542Reimbursement‐Pechanga IGA2,500,000UnspecifiedTotal 3,169,794RDA Bond Proceeds1,669,794TUMF (WRCOG)1,500,000General FundMeasure STUMF (WRCOG)5,283,492Total 110,293,105TUMF (CETAP/RCTC)999,668TUMF (RCTC)SAFETEA‐LU1,602,360STIP‐Surface Transportation Improvement 47,600,000Measure S4,807,585ReimbursementsINFRA Grant50,000,000Measure ADIF‐Street ImprovementsGeneral FundTotal 254,464CFD 01‐02 (Harveston)TUMF (RCTC)TUMF (WRCOG)177,027Measure STUMF (CETAP/RCTC)77,437General FundMeasure ADIF‐Street Improvements311 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27Projected1,190,5821,190,5821,439,8391,439,83914,446,520 20,000 14,606,52012,035,21112,976,0005,352,2155,400,0004,452,0004,452,0005,567,2899,091,48545,723,568 20,000 51,091,897Medians & Parkways ‐ Citywide 854,839894,838Motor Car Parkway Improvements750,000 750,000Murrieta Creek Bridge At Overland2,010,9603,419,6155,430,575270,8304,450,296 14,711,28019,642,7991,000,0002,281,7904,450,296 18,130,89526,073,374Nicolas Road Extension & Improvements7,707,7176,722,8507,754,09322,184,660Overhead Street Name Sign Replacement Program ‐ Citywide100,000325,000Overland Drive Extension Commerce Center8,082,4758,082,475235,422235,4228,317,8978,317,897Overland Drive Widening352,000852,0201,554,0201,340,4001,340,400352,000852,020 1,340,4002,894,420Total 350,000DIF‐Street Improvements350,000Measure AGeneral FundTotal Measure S225,000DIF‐Street ImprovementsDeveloper Contribution7,754,093Total 22,184,660CFD 03‐02 (Roripaugh Ranch)7,707,717CFD 16‐01 (Roripaugh Ranch‐Phase II)6,722,850Measure S1,000,000Total 1,210,393DIF‐Street ImprovementsHBP‐Highway Bridge Program210,393DIF‐Street Improvements39,999RPTTF‐Redevelopment Property Tax Trust FundTUMF (WRCOG)3,524,196Total 5,348,330TUMF (CETAP/RCTC)47,785TUMF (RCTC)Senate Bill 621140,000STP (RCTC)940,789Reimbursements/OtherSAFETEA‐LU312 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedPavement Rehabilitation Program ‐ Citywide 1,200,0001,200,0005,692,6145,692,61416,646,857 289,980 1,220,380 1,256,380 27,283,5572,000,0002,000,00036,000263,3375,054,005 2,269,086 2,314,468 2,360,757 2,407,972 20,653,14130,629,476 2,269,086 2,604,448 3,581,137 3,664,352 57,092,649Pechanga Parkway Widening 5,000,0005,000,000Rainbow Canyon Road Pavement Rehabilitation1,150,000 1,150,000Rancho California Road Median Improvements57,200 57,200395,800 115,000 587,000 1,097,800150,000 150,0002,500,000 50,000 2,550,000603,000 115,000 3,087,000 50,000 3,855,000Roundabout Improvements On Ynez Road 540,000540,000270,000270,00025,00025,000835,000835,000Traffic Signal ‐ Equipment Enhancement Program ‐ Citywide 519,831541,788315,000 150,000 260,000 260,000 260,000 2,855,000834,831 150,000 260,000 260,000 260,000 3,396,788Traffic Signal ‐ Installation ‐ Citywide 246,764250,000701,892 375,000 375,000 2,057,683150,000 150,000 960,0001,098,656 525,000 375,000 3,267,683Measure S495,000165,000Total 804,027465,000Developer Contribution3,236DIF‐Traffic Signals305,791300,000Measure S1,350,000260,000Total 1,371,957260,000Total DIF‐Traffic Signals21,957DIF‐Street ImprovementsPublic Art FundTotal Developer ContributionMeasure SUnspecifiedDeveloper ContributionDIF‐Street ImprovementsPechanga Tribe ContributionsReimbursement‐Pechanga IGARMRA3,790,7212,456,132Total 10,593,9473,750,203Measure SReimbursements227,337General FundMeasure A6,575,8891,294,071Gas Tax313 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedTraffic Signal ‐ Park & Ride Access Improvments175,000226,725226,72550,5051,059,171500,000500,000777,2301,960,896Traffic Signal ‐ System Upgrade489,51092,39092,39092,390581,900Ynez Road Improvements ‐ Phase I2,000,000 2,000,000Ynez Road Improvements ‐ Phase II 619,451 1,665,000 2,636,7664,085,000 4,085,000619,451 1,665,000 4,085,000 6,721,766TOTAL CIRCULATION PROJECTS 197,774,226 34,503,227 23,612,186 18,386,099 177,759,830 619,776,487ADA Compliance For Pavement Rehab Program ‐ West Side Business Park Area 79,337313,000143,600143,600222,937456,600American With Disabilities Act (ADA) Transition Plan Implementation 80,587 323,660 323,660 323,660 323,660 1,941,960Auto Mall Wayfinding Signs200,000 200,000Bike Land and Trail Program ‐ Great Oak Trail Lighting100,000 400,000Service Level C ‐ Zone 28 300,000CDBG 243,073 323,660Measure SMeasure ATotal 233,663163,265,7164,475,203INFRASTRUCTURE PROJECTSCDBG233,663UnspecifiedTotal 352,315DIF‐Street ImprovementsDIF‐Street Improvements352,315Measure STotal 489,510Total 1,183,666HSIP‐Highway Safety Improvement Program489,510Measure S1,008,666Settlement ProceedsDeveloper Contribution175,000General Fund314 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedBike Lane And Trail Program ‐ Citywide 218,419 216,955 144,575 143,830 151,664 1,248,93119,85719,85769,87372,1771,144,558 1,144,558308,149 216,955 144,575 1,288,388 151,664 2,485,523Bike Lane and Trail Program ‐ Infill Mini Pump Track300,000Bike Lane And Trail Program ‐ Mini Pump Track 95,00095,000Bike Lane and Trail Program ‐ RRSP Trails360,000 690,000 1,050,000700,000 700,000350,000 350,000360,000 1,740,000 2,100,000Bike Lane And Trail Program ‐ Temecula Creek South Side Trail67,84567,845100,000 90,634 754,8743,841,400 3,841,400167,845 90,634 3,841,400 4,664,119Bike Lane Trail Program ‐ Pump Track545,839577,766City Facilities Rehabilitation250,000250,000743,666500,000 750,000 1,000,000 1,000,0005,443,6661,750,0001,750,0002,743,666500,000 750,000 1,000,000 1,000,0007,443,666City Facility Security100,000250,000Citywide Drainage Master Plan5,000725,000Citywide Financial System Upgrade500,000613,184763,534500,0001,376,718Technology Replacement Fund763,534Total 876,718Measure S720,000Measure S113,184Total 450,0001,000,000Measure S150,000Facilities Replacement Fund450,0001,000,000General FundDIF‐Open Space & Trails31,927DIF‐Corporate FacilitiesUnspecifiedTotal 564,240Assembly Bill 2766Measure S564,240Measure STotal DIF‐Open Space & TrailsDIF‐Park & Rec ImprovementsMeasure S300,000DIF‐Park & Rec ImprovementsUnspecifiedTotal 213,238162,554Beyond GrantDIF‐Open Space & Trails2,304Assembly Bill 2766210,934162,554315 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedCitywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 2,503,3112,503,3115,500,0005,500,0008,003,3118,003,311Citywide Surveillance Cameras 754,925752,087526,113 595,000 1,121,1132,018,5852,618,5853,299,623 595,000 4,491,785Community Recreation Center (CRC) Renovations750,000 750,000200,000 515,160 400,000 1,921,208160,000 1,000,000 1,096,640 3,450,592150,000 3,893,391 527,664 4,586,432510,000 6,158,551 2,024,304 10,708,232Comprehensive General Plan Update500,000 400,000 1,400,000810,000500,000 400,000 2,210,000Electric Vehicles Charging Station47,00047,000141,00098,929 298,92947,000 98,929 486,929Fiber Optic Communication System Upgrade1,208,200113,000393,000113,0001,601,200Fiber Optic Communications Systems ‐ Citywide1,200,0001,200,000 1,200,0001,200,000 2,400,000Fire Station 73 Gym/Garage 250,000 23,470 1,334,117 1,864,497Fire Station 84 Training Room Renovation 666,7501,641,028History Museum454,000 454,000Measure S 974,278Measure STotal 1,200,000Measure S 256,910Measure S 1,200,000UnspecifiedMeasure S 280,000Total 1,488,200Total 341,000HSIP‐Highway Safety Improvement Program 1,208,200MSRC‐Mobile Source Air Review Committee 141,000TEAM 200,000Total 1,310,000Assembly Bill 2766General Fund 500,000Grants 810,000Measure S15,377Total 2,015,377DIF‐Park & Rec Improvements806,048DIF‐Quimby1,193,952Total 597,162Developer ContributionDIF‐Police FacilitiesMeasure S600,000Total DIF‐Corporate Facilities(2,838)General FundMeasure S316 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedI‐15/State Route 79 South Interchange Enhanced Landscaping441,350330,0001,058,4832,500,000441,350330,0003,558,483Library Parking ‐ Phase II2,194,4862,261,92650,00050,00037,62737,627987,342987,3423,269,4553,336,895Local Roadway Safety Plan72,00018,00018,00018,00090,000Margarita Recreation Center6,405,0006,405,000600,000137,0001,636,7731,765,0005,459,5088,041,7731,765,00012,601,508Mary Phillips Senior Center Emergency Generator185,000185,00020,000185,000205,000Mary Phillips Senior Center Enhancement And Renovation18,112723,906279,69430,000228,425258,42548,112228,4251,262,025Medians & Traffic Calming Improvements ‐ Citywide40,00040,000231,900270,000250,000911,90025,000271,900270,000250,000976,900Total 185,000Measure S160,000Reimbursements25,000Total 985,488DIF‐Street ImprovementsFacilities Replacement Fund279,694Measure STotal 20,000CDBG705,794GrantsMeasure S20,000Measure S2,057,735Total 2,794,735DIF‐Park & Rec Improvements600,000DIF‐Police Facilities137,000Total 72,000Capital FinancingGrants72,000Measure SMeasure STotal 67,440DIF‐Police FacilitiesGeneral FundTotal 2,787,133DIF‐Library Facilities67,440Measure S287,133Reimbursement‐Pechanga IGA2,500,000317 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedMurrieta Creek Improvements135,858135,85853,79153,791857,585862,585200,0001,047,2341,252,234Nicolas Road Multi‐Use Trail Extension300,000300,000150,000300,000450,000Old Town Parking Structure1,000,0001,000,000Old Town Surveillance & Sound System200,000600,000160,000660,000360,0001,260,000Pechanga Parkway Environmental Mitigation837,236864,530Pedestrian Signal Equipment Upgrade ‐ Citywide908,20068,00098,00068,0001,006,200RCWD Recycled Water Accelerated Retrofit Program40,00055,000170,00040,000225,000Recycled Water Conversion Project64,109426,02955,697142,010142,01021,50010,00030,803206,119686,039Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension58,68358,683223,311223,311BTA ‐ Bicycle Transportation AccountTotal 479,920Assembly Bill 2766Service Level C ‐ Zone 1810,000Service Level C ‐ Zone 2030,803Measure SService Level C ‐ Zone 1621,500DWR Grant361,920General Fund55,697Reimbursements170,000Total 185,000Total 938,200Measure S15,000HSIP‐Highway Safety Improvement Program908,200Measure S30,000Total 900,000CFD 03‐03 (Wolf Creek)27,294DIF‐Corporate Facilities400,000Measure S500,000Total 150,000General FundDIF‐Open Space & TrailsMeasure S150,000TEAM200,000Total 205,000Measure SReimbursements5,000General Fund318 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27Projected389,073389,07378,92078,920821,8992,664,608722,5953,759,0002,294,4817,173,595Santa Gertrudis Creek Phase II ‐ Margarita Under‐Crossing 396,117 314,000 1,684,2021,502,000396,117 314,000 3,186,202Sidewalks ‐ Citywide 375,000375,000736,533 500,000 500,000 500,000 500,000 3,800,1291,111,533 500,000 500,000 500,000 500,000 4,175,129Sidewalks ‐ DLR Drive 188,599464,866Sidewalks ‐ Old Town Boardwalk Enhancement 385,596538,037594,527594,527980,1231,132,564Sidewalks ‐ Old Town Improvements 849,426849,426140,000140,000680,000 300,000 1,105,0001,669,426 300,000 2,094,426Temecula Elementary School (TES) Pool Renovation 135,100135,100Temecula Park & Ride 1,122,3851,122,385729,8721,908,031100,000100,0001,129,8021,129,802400,000400,0003,482,0594,660,218The MERC Concession Upgrade604,000604,000Traffic Signal‐Promenade Mall Ring Road44,446149,554449,554149,554494,000Total 344,446Developer Contribution44,446Measure S300,000Total 1,178,159Measure SGeneral FundMeasure SCMAQ‐Congestion Mitigation Air Quality1,178,159DIF‐Police FacilitiesDIF‐Park & Rec ImprovementsAssembly Bill 2766Measure S125,000Total 125,000CDBGMeasure AMeasure STotal 152,441General Fund276,267CDBG152,441Measure S563,596500,000Total 563,596500,000Total 2,476,085General FundMeasure S974,085Senate Bill 11,502,000Senate Bill 13,036,405Total 4,879,114General FundMeasure S1,842,709DIF‐Open Space & Trails319 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedUrban Forest Management Plan27,30052,300323,93027,300376,230Utility Undergrounding ‐ Citywide 244,375244,375Utility Undergrounding ‐ Main Street and Vicinity658,060 658,060385,940 385,9401,044,000 1,044,000TOTAL INFRASTRUCTURE PROJECTS 43,917,000 15,077,178 7,216,656 8,857,448 1,975,324 111,436,853Children's Museum Enhancement Project 145,090145,090400,000400,000545,090545,090Community Recreation Center Splash Pad & Shade Structures 100,0001,100,000Dog Park Renovation247,126182,874430,000Eagle Soar Splash Pad Control System Renovation 200,000200,000Flood Control Channel Reconstruction & Repair 650,284650,284797,427 200,000 1,743,0374,743,659 4,743,6591,447,711 200,000 4,743,659 7,136,980Harveston Community Park Building Renovation and Expansion2,000,000 2,000,000Infill Recreational Amenities300,000 300,000100,000 100,000400,000 400,000Murrieta Creek Regional Sports Park1,000,0001,500,000 1,500,000Measure STotal DIF‐Quimby1,000,000DIF‐Park & Rec ImprovementsDIF‐QuimbyTotal 745,610Developer ContributionMeasure S745,610UnspecifiedMeasure SGeneral FundMeasure S182,874Total 430,000Measure S1,000,000Grants247,126Measure STotal 32,407,0331,986,214PARKS/RECREATION PROJECTSDIF‐Park & Rec ImprovementsReimbursements/OtherTotal Measure SMeasure SGrants323,930Total 348,930DIF‐Park & Rec Improvements25,000320 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27Projected5,500,0005,500,0001,500,000 5,500,0008,000,000Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements347,8001,025,000 1,025,0003,269,800Parks Improvement Program250,000250,0001,003,0591,003,059764,000350,000 350,000 350,000 350,0002,870,00056,94156,9412,074,000350,000 350,000 350,000 350,0004,180,000Pickleball Courts1,200,0001,450,000750,0001,200,0002,200,000Playground Equipment Enhancement & Safety Surfacing1,040,0001,040,000440,000440,0002,400,000500,000 500,000 500,000 500,0005,677,6493,880,000500,000 500,000 500,000 500,0007,157,649Ronald Reagan Sports Park Channel Silt Removal461,366461,36688,00088,000150,620150,620699,986699,986Ronald Reagan Sports Park Hockey Rink450,0001,200,000Ronald Reagan Sports Park Pump Track Shade Structure75,000Ronald Reagan Sports Park Restroom Expansion & Renovation825,0001,472,199Ronald Reagan Sports Park Skate Park1,000,000Sam Hicks Monument Park Perimeter Fencing201,000266,000Sports Court Resurfacing150,00050,000 50,000 50,000 50,000470,257Measure S65,000Measure S70,25750,000Measure S647,199Measure S1,000,000Measure S750,000Measure S75,000ReimbursementsTotal General FundProposition 42Measure S777,649500,000Total 777,649500,000DIF‐Park & Rec ImprovementsDIF‐QuimbyMeasure S750,000Total 1,000,000Total 356,000350,000DIF‐Park & Rec Improvements250,000Measure S356,000350,000ReimbursementsDIF‐QuimbyGeneral FundTotal 1,000,000Measure S872,000Unspecified321 Capital Project NamePrior Years Actuals2022‐23Proposed Budget2023‐24Projected2024‐25Projected2025‐26ProjectedTotalProjectCostCity of TemeculaFiscal Year 2022-23Annual Operating BudgetCapital Projects Summary ‐ By ProjectFunding Source2021‐22Amended2026‐27ProjectedSports Field Lighting ‐ Light Emitting Diode (LED) Conversion 630,000 400,000 400,000 400,000 400,000 2,530,000100,000 300,000630,000 400,000 500,000 400,000 400,000 2,830,000TOTAL PARKS/RECREATION PROJECTS 11,100,587 6,575,000 3,925,000 11,543,659 1,300,000 44,632,961Habitat for Humanity Old Town Units557,000 557,000501,000 501,0001,058,000 1,058,000Las Haciendas Affordable Housing Project9,629,143500,85710,130,000Vine Creek Affordable Housing Project1,301,7194,000,0001,408,2816,710,000TOTAL SARDA PROJECTS1,058,000 17,898,000TOTAL CAPITAL IMPROVEMENT PROGRAM 252,791,813 57,213,405 34,753,842 38,787,206 181,035,154 793,744,30116,840,000221,801,464 7,361,417RDA Bond Proceeds 1,408,281Total 6,710,000Affordable Housing 1,301,719Community Reinvestment Program 4,000,000Uptown Temecula New Streets In Lieu Fee500,857Total 10,130,000Total RDA Bond Proceeds9,629,143SARDA PROJECTSAffordable HousingContribution of LandTotal 500,0009,288,715900,000Measure S300,000TEAM200,000322 Capital ProjectOperating Budget AccountDescription2023‐24 Projected2024‐25 Projected2025‐26 Projected2026‐27 Projected155 ‐ PARK RESTROOMS RENOVATIONS, EXPANSION AND AMERICANS WITH DISABILITIES ACT (ADA) IMPROVEMENTS5250 ‐ OTHER OUTSIDE SERVICESJanitorial Services26,530 27,061 27,602 28,154 688 ‐ CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT5319 ‐ STREET LIGHTINGElectricity Savings(655,636) (675,305) (695,564) (709,475) 690 ‐ I‐15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING5415 ‐ LANDSCAPE MAINTENANCERequired by Caltrans56,240 58,490 60,830 62,046 692 ‐ MARGARITA RECREATION CENTER5100 ‐ SALARIES & WAGESStaffing for MRC (4 positions)483,699 498,210 513,157 528,551 5240 ‐ UTILITIESAdditional Utility Costs55,000 55,000 55,000 55,000 5250 ‐ OTHER OUTSIDE SERVICESJanitorial/Security50,000 50,000 50,000 50,000 5378 ‐ CONTRACTED CLASSESContract Classes164,145 176,520 185,000 190,000 5418 ‐ POOL MAINTENANCESwimming Pool maintenance100,000 100,000 100,000 100,000 852,844 879,730 903,157 923,551 711 ‐ CITYWIDE SURVEILLANCE CAMERAS5250 ‐ OTHER OUTSIDE SERVICESMaintenance and Operations for Surveillance System350,000 350,000 350,000 350,000 724 ‐ CITYWIDE FINANCIAL SYSTEM UPGRADE5211 ‐ SOFTWARE & MAINTENANCEAnnual Software Maintenance66,934 66,934 66,934 66,934 780 ‐ OLD TOWN SURVEILLANCE & SOUND SYSTEM5215 ‐ REPAIR & MAINTENANCE ‐ EQUIPMENTMaintenance fees for Old Town Sound System50,000 50,000 50,000 50,000 746,912 756,910 762,959 771,210 City of TemeculaFiscal Year 2022-23Annual Operating BudgetSummary of Operating & Maintenance ImpactsOperating cost impacts are estimated by the Project Manager.Incremental Operating impacts have been reflected in the City's General Fund Five‐Year Financial Forecast.Total Incremental Operating & Maintenance Impacts323 Project Title Department Estimated* Project Cost La Paz Street Widening from Ynez Road to Temecula Parkway Public Works 2,500,000 Pauba Road Improvements - east of Margarita Road on the north side Public Works 2,000,000 Rainbow Canyon Road Widening from Pechanga Parkway to City Limit Public Works 8,000,000 Rancho Way Extension from Diaz to Margarita Road Public Works 28,337,000 Temecula Creek Crossing Public Works 16,777,300 57,614,300$ Corporate Meeting and Event Space Community Services 625,000 Fire Station 92 and 95 Bay Door Replacement Fire Services 200,000 Pedestrian and Bicycle Bridge Overcrossing into Old Town Planning 1,890,000 Old Town Gymnasium Community Services 4,630,000 Public Safety Monument Public Works/CMO 30,000 Southside Branch Library Community Services 6,640,000 Southside Recreation Center Community Services 4,500,000 18,515,000$ Ronald Reagan Sports Park North/South Fields Back Stops, Dugout, and Parking Lot with Trash Enclosures Community Services 857,000 Ronald Reagan Sports Park Upper Soccer Paving and Materials/Equipment Storage Bays Community Services 481,250 Ynez Road and Overland Landscaping Community Services 200,000 Vail Ranch Park Site D Community Services 1,843,000 3,381,250$ PARKS and RECREATION CIRCULATION INFRASTRUCTURE / OTHER FUTURE YEARS PROJECTS *Estimates are planning level at the time the project was reviewed and they do not account for inflation and economic conditions City of Temecula Fiscal Year 2022-23 Annual Operating Budget 324 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Page I. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION .......................................... 328 A. Annual Operating Budget (AOB) ........................................................................................... 328 B. Balanced Budget .................................................................................................................... 329 C. Five Year Financial Forecast .................................................................................................. 329 D. Capital Improvement Program (CIP) ..................................................................................... 330 II. FINANCIAL REPORTING ....................................................................................................... 333 A. Annual Reporting ................................................................................................................... 333 B. Interim Reporting .................................................................................................................. 333 C. Budget Amendments ............................................................................................................. 334 D. Extended Annual Reporting .................................................................................................. 334 III. FUND BALANCE AND RESERVES ......................................................................................... 334 A. Fund Balance Policy ............................................................................................................... 334 B. Reserve for Economic Uncertainty ........................................................................................ 334 C. Secondary Reserve for Contingencies ................................................................................... 335 D. Future Capital Project Designations ...................................................................................... 335 E. Other Designations and Reserves ......................................................................................... 335 F. Fund Balance Components .................................................................................................... 335 G. Hierarchy of Spending Fund Balance..................................................................................... 336 H. Unassigned Fund Balance – General Fund ............................................................................ 336 IV. TRANSACTIONS AND USE TAX FUNDING (MEASURE S) .................................................... 337 A Measure S Revenue ............................................................................................................... 337 B. Appropriation Priorities of Measure S Revenue.................................................................... 337 V. CONTINGENCY PLANNING .................................................................................................. 339 A. One Time Events .................................................................................................................... 339 B. Ongoing Fiscal Constraints .................................................................................................... 339 VI. STAFFING POLICY ................................................................................................................ 340 A. Regular Staffing ..................................................................................................................... 340 B. Project Staffing ...................................................................................................................... 340 C. Temporary Staffing ................................................................................................................ 341 D. Work Hours ........................................................................................................................... 341 E. Overtime Management ......................................................................................................... 341 F. Independent Contractors ...................................................................................................... 342 325 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI. STAFFING POLICY (continued) Page G. Productivity ........................................................................................................................... 342 H. Contracting for Services – Private Sector .............................................................................. 343 I. Contracting for Services – Government Service Contracts ................................................... 344 J. Contracting for Services – Regional Approach ...................................................................... 345 K. Comprehensive Annual Leave Payout ................................................................................... 345 VII. ASSET MANAGEMENT AND REPLACEMENT POLICY .......................................................... 346 A. Replacement Funds ............................................................................................................... 346 VIII. CAPITAL FINANCING AND DEBT MANAGEMENT ............................................................... 347 A. Capital Financing ................................................................................................................... 347 B. Debt Management ................................................................................................................ 348 C. Debt Capacity ........................................................................................................................ 350 D. Independent Disclosure Counsel ........................................................................................... 350 E. Land-Based Financings .......................................................................................................... 350 F. Conduit Financings ................................................................................................................ 353 G. Refinancings .......................................................................................................................... 354 H. Types of Debt That May be Issued ........................................................................................ 354 I. Policy Goals Related to Planning Goals and Objectives ........................................................ 355 J. Creation of Services Community Facilities Districts .............................................................. 356 IX. INTERFUND TRANSFERS AND LOANS POLICY .................................................................... 360 A. Establishment of Various Funds ............................................................................................ 360 B. Transfer Between Funds........................................................................................................ 360 C. Interfund Loans ..................................................................................................................... 360 X. APPROPRIATIONS LIMITATION .......................................................................................... 361 A. Adopting a Resolution ........................................................................................................... 361 B. Supporting Documentation Available for Review ................................................................. 361 C. Calculating Appropriations .................................................................................................... 361 D. Review of User Fees and Charges ......................................................................................... 361 E. Support of Legislation or Initiatives ...................................................................................... 361 F. Voter Approval to Amend Appropriation Limit ..................................................................... 361 326 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget XI. PENSION RATE STABILIZATION POLICY .............................................................................. 362 A. Establishment of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust ................ 362 B. Funding of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust .......................... 362 XII. SIGNATURE DELEGATION POLICY ....................................................................................... 362 A. Delegation of City Manager Signature Authority ....................................................................... 362 B. Delegation of City Manager Settlement Authority .................................................................... 363 XIII. EMERGENCY APPROPRIATION POLICY............................................................................... 364 327 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget I.FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION A.Annual Operating Budget (AOB) Through its Annual Operation Budget, the City will link resources with results by: 1.Identifying community needs for essential services that improve quality of life through strategic planning that: a.Organize the programs required to provide these essential services; b.Establish program policies and goals, which define the nature and level of program services required; c.Identify activities performed in delivering program services. 2.Proposing goals for improving the delivery of program services that: a.Identify and appropriate the resources required to perform program activities and accomplish program goals. b.Set objectives to measure Performance (progress) pertaining to: •Long term goals that align Council priorities with financial resources; •Output of program activities; •Accomplishment of program objectives; •Expenditure of program appropriations. 3.The AOB process encompasses the development, implementation, and evaluation of a plan for the provision of services for the upcoming fiscal year. The process includes political, managerial, planning, communication, and financial dimensions. The budget incorporates a long-term perspective, establishes linkages to broad organizational goals, and focuses budget decisions on desired results and outcomes. The AOB is formalized via the following process: a.A budget workshop is held with the City Council to receive Council direction and public comment, prior to budget preparation; b.Budget team updates policies and procedures for budget preparation, creates the budget process calendar, and prepares the current budget schedules for each department to use in preparing the new budget; c.A budget kickoff workshop is held with the City Manager, Department Directors, and Department Analysts to discuss the status of the current fiscal year budget, discuss the Five-Year Financial Forecast, review the upcoming budget process calendar, discuss the impacts of the current economic conditions at the State and Federal levels, and discuss the essential principles and elements of the budget process; 328 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget I.FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) d.Individual meetings are held with the budget team and each department to assist in the budget development process; e.The City Manager, in collaboration with the budget team, holds meetings with each department director (and analysts) to discuss their department budget request; f.A budget workshop is held with the City Council to receive public comment and to review the components of the proposed budget, prior to formal consideration for adoption; g.City Manager submits the proposed AOB and salary plan to the City Council at a public meeting for approval. B.Balanced Budget The City will maintain a balanced budget over the period of the Financial Strategic Plan. This means that: 1.Operating revenues must fully cover operating expenditures; 2.Ending fund balance must meet minimum policy levels. For the General Fund, this level has been established at 20% of operating expenditures for economic uncertainties and to support the City’s credit worthiness, cash flow, and response to local disasters. C.Five-Year Financial Forecast The City will prepare a five-year financial forecast bi-annually to assist in long range planning and policy development. The five-year forecast provides a tool to evaluate the ability of the City to fund proposed programs, operating and maintenance costs, capital expenditures, as well as operating costs related to future capital improvement projects. 1.Revenues are projected using a conservative approach, and are based on historical trends, stable residential development projections, internal analysis, and commercial growth that incorporates known development projects. Separate sets of assumptions are developed for major revenue types such as sales tax property tax, community development fees, transient occupancy taxes, and investment income; 2.Departmental expenditure projections are developed using anticipated cost of living increases for general administrative operating costs. Additional assumptions are incorporated for major expenditure categories such as public safety to ensure that commercial and residential growth projections are addressed to main current service levels. The five-year capital improvement program is reviewed with the annual operating budget, and maintenance costs of each proposed project are identified and included in the forecast; 329 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget I.FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) 3.The five-year forecast indicates whether projected revenue growth will support anticipated expenditures for current levels of service. However, as the City continues to grow, it is important to ensure that it can meet increasing demands and be in a position to respond to possible changes in economic conditions. The five-year forecast is a dynamic tool that requires bi-annual update and review of its underlying assumptions to keep the City in a position of strong fiscal condition. D.Capital Improvement Program (CIP) 1.CIP Purpose - The purpose of the Capital Improvement Program (CIP) budget document is to serve as a planning tool, which coordinates the level ranking, financing, and scheduling of major projects undertaken by the City. All projects presented in the five-year CIP budget are carefully programmed to ensure the community’s capital improvement needs are met both now and in the future. In addition, the projects provide additional opportunities and access to the City and improve the overall quality of life as identified in the Quality of Life Master Plan (QLMP). This document is dynamic and, consequently, must be revised annually to address changing needs, level rankings, and financial conditions. The City’s goal in providing a CIP Budget is to develop a multi-year plan for capital improvement, update it annually, and follow through with all capital improvements in accordance with the plan. It also allows staff to budget operating and maintenance costs into the five- year projection in order to determine the total cost of each project before it is undertaken. 2.CIP Development - This CIP budget document is developed by incorporating input from City Council and key management team members, based on community comments and feedback received throughout the year. This team then, through several workshops, identifies and evaluates community needs in the areas of roads/streets, bridges, public buildings, parks and recreation facilities, and redevelopment projects. Each proposed project is reviewed and discussed to ensure funding, timing, and necessity. A CIP City Council workshop is held to provide the City Council with an opportunity to review each project in detail, and to receive public comments concerning the five-year program. 3.CIP Projects: $30,000 or More - The capital improvements presented in the budget are the City’s major projects, which exceed $30,000 in cost, have long-term life spans, and are generally non-recurring. These projects include land and right of way acquisition, design, construction or rehabilitation of public buildings or facilities, public infrastructure design and construction, park design and construction, and redevelopment projects. 330 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget I.FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) 4.Project Manager - Every CIP project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status. 5.Project Benefit - Projects must identify a benefit and reference a Core Value (QLMP) goal. 6.CIP Review Committee - In determining the relative merit of a proposed project, key management team members evaluate projects for feasibility, community enhancement, infrastructure and historic preservation, and safety. 7.CIP Levels - Projects in the CIP are scheduled in each of five fiscal years based on community needs, as determined by the City Council and availability of funding. Level rankings in each major category (Circulation, Infrastructure/Other, Parks and Recreation, and SARDA/Housing) are assigned in accordance with the following guidelines: a.LEVEL I: The project is urgent and must be completed as soon as feasible. Failure to address the project may impact the health, safety, or welfare of the community or have a potential significant impact on the financial well-being of the City. The project must be initiated, or financial opportunity losses may result. b.LEVEL II: The project is important and addressing it is necessary. The project impacts safety, law enforcement, health, welfare, economic base, quality of life, and has been identified as a priority in the Quality of Life Master Plan. c.LEVEL III: The project will enhance quality of life and will provide a benefit to the community. Completion of the project will improve the community by providing cultural, recreational, and/or aesthetic value, or is deemed as a necessary improvement to a public facility. d.Future Years Projects: The project will be an improvement to the community but does not necessarily need to be completed within a five-year capital improvement program time frame. 8.CIP Administrative Costs - The administrative costs associated with managing CIP projects are estimated (generally as five to ten percent of estimated construction costs) and included in each project budget. 9.CIP Operations and Maintenance (O & M) - Future operations and maintenance costs that result from CIP projects are estimated and identified in the CIP project sheets. These incremental future operating costs are incorporated into the five- year forecast. 331 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget I.FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) 10.CIP Phases - The CIP will emphasize project planning, with projects progressing through at least two and up to ten of the following phases: a.Designate (Assigned). Appropriates funds based on projects designated for funding by the Council through adoption of the Financial Strategic Plan. b.Study. Concept design, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, specification preparation for equipment purchases. c.Environmental Review. Compliance with CEQA, NEPA and other environmental studies, if necessary. d.Real Property Acquisitions. Property acquisition for projects, if necessary. e.Site Preparation. Demolition, hazardous materials abatements, other pre- construction work. f.Design. Final design, plan and specification preparation and construction cost estimation. g.Construction. Construction contracts. h.Construction Management. Contract project management and inspection, soils and material tests, other support services during construction. i.Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other equipment items acquired and installed independently from construction contracts. 11.CIP Appropriation - The City's annual CIP appropriation for study, design, acquisition and/or construction is based on the projects designated by the Council through adoption of the Financial Strategic Plan. Adoption of the Financial Strategic Plan CIP appropriation does not automatically authorize funding for specific project phases. This authorization generally occurs only after the preceding project phase has been completed and approved by the Council and costs for the succeeding phases have been fully developed. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fund balance or allocated to another project. If project costs at the time of bid award are greater than budget amounts, five basic options are available: a.Eliminate the project; b.Defer the project for consideration to the next Financial Strategic Plan period; 332 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget I.FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) c.Rescope or change the phasing of the project to meet the existing budget; d.Transfer funding from another specified, lower-level ranking project. e.Appropriate additional resources as necessary from fund balance. 12.CIP Budget Carryover - Project accounts, which have been appropriated, will not lapse until completion of the project phase. 13.Program Objectives - Project phases will be listed as objectives in the program narratives of the programs, which manage the projects. 14.General Plan Consistency Review - All projects are evaluated by the City’s Planning Commission to ensure consistency with the provisions of the City of Temecula General Plan, while considering the City’s long-term vision as developed by the City Council. The proposed Circulation, Infrastructure, and Parks and Recreation projects are reviewed and approved by the Planning Commission, Public/Traffic Safety Commission, and the Parks and Recreation Commission. II.FINANCIAL REPORTING A.Annual Reporting The City will prepare annual financial statements as follows: 1.The City will contract for an annual audit by a qualified independent certified public accountant (or accounting firm). The City will strive for an unqualified auditors' opinion. 2.The City will use generally accepted accounting principles in preparing its annual financial statements and will strive to meet the requirements of the GFOA's Award for Excellence in Financial Reporting program. 3.The City will issue audited financial statements within 180 days after year-end. B.Interim Reporting The City will prepare and issue timely interim reports on the City's fiscal status to the Council and staff. This includes on-line access to the City's financial management system by City staff; monthly reports to program managers; formal quarterly reports to the Council and Department Directors; mid-year budget reviews; and interim annual reports. 333 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget II.FINANCIAL REPORTING (continued) C.Budget Amendments The Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances. D.Extended Annual Reporting The City will prepare extended annual reports as required by Federal and State requirements including, but not limited to: 1.State Controller Report 2.Street Reports III.FUND BALANCE AND RESERVES A.Fund Balance Policy Fund balance represents the accumulation of actual revenues and other financing sources in excess of actual expenditures and other uses at year-end. In general terms, it represents the City’s accumulated “savings” from year to year, as any fund balance realized at year-end is added to (or deducted from if expenditures exceeded revenues for that particular year) the previous year’s fund balance. Fund balance is often referred to as “reserves.” B.Reserve for Economic Uncertainty The City will maintain a minimum fund balance of at least 20% of operating expenditures in the General Fund, in order to adequately provide resources in the event of an unexpected draw on City finances. Eligible uses of these reserve funds include: •Expenditures due to local disasters/acts of nature •Loss of major revenue source(s) due to financial hardship or economic downturn •State-imposed take of local revenue/mandated payments •Significant unanticipated expenditures •Significant payout of Comprehensive Annual Leave for employees leaving City service 334 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget III.FUND BALANCE AND RESERVES (continued) C.Secondary Reserve for Contingencies In addition to the Reserve for Economic Uncertainty, the City will strive to maintain an operating reserve within the General Fund in the amount of 5% of General Fund operating expenditures. Use of these reserve funds shall be limited to: •Covering annual operating expenditures if revenue falls short of projections, creating an annual operating deficit. •Making one-time investments in Capital infrastructure that will create long-term operational savings to the General Fund, leverage available grant funds, or provide funding for projects that will create an economic benefit to the City. D.Future Capital Project Designations The Council may designate specific fund balance levels for future development of capital projects that it has determined to be in the best long-term interests of the City. E.Other Designations and Reserves In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles. F.Fund Balance Components This policy establishes the procedures for reporting unrestricted fund balance in the General Fund financial statements, as well as a fund balance expenditures hierarchy. Fund Balance commitments and assignments ensure that there will be adequate financial resources to protect the City against circumstances such as revenue shortfalls and unanticipated expenditures. The Policy also authorizes and directs the Director of Finance to prepare financial reports and categorize fund balance per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. There are five separate components of fund balance which identify the specific purposes for which amounts can be spent: (1) Non-expendable Fund Balance – inherently non- expendable; (2) Restricted Fund Balance – externally enforceable limitations on use; (3) Committed Fund Balance – self-imposed limitations on use; (4) Assigned Fund Balance – limitation resulting from intended use; (5) Unassigned Fund Balance – residual net resources. 1.Non-expendable Fund Balance - Amounts that cannot be spent because they are either (a) not in spendable form, such as prepaid items or inventories; or (b) legally 335 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget III.FUND BALANCE AND RESERVES (continued) required to be maintained intact, such as the principal portion of an endowment. 2.Restricted Fund Balance - Amounts for a specific purpose that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, other governments’ regulations; or (b) imposed by law through constitutional provisions or enabling legislation. 3.Committed Fund Balance - Amounts authorized for specific purposes by a government’s highest level of decision-making authority (City Council). These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period however, the amount can be determined subsequently. The City’s committed fund balance includes a reserve for economic uncertainty. It is City policy to maintain a reserve of 20% of Annual General Fund appropriations. Amounts are committed to finance any significant unanticipated revenue shortfalls, negative State budget impacts or impacts from natural disasters or other catastrophic events. 4.Assigned Fund Balance - Amounts that are constrained for specific purposes but are neither restricted nor committed. For all governmental funds other than the General Fund, any remaining amounts not classified as non-expendable, restricted, or committed are considered assigned. For the General Fund, this policy delegates the authority to assign amounts to be used for specific purposes to the Finance Director in consultation with the City Manager for the purpose of reporting these amounts in annual financial statements. 5.Unassigned Fund Balance - Residual net resources of the General Fund in excess of what can be classified in one of the other four categories. G.Hierarchy of Spending Fund Balance Restricted fund balance should be spent first when an expenditure is incurred for which both restricted and unrestricted fund balance is available. When an expenditure is incurred for purposes where amounts in any of the unrestricted classifications of fund balance could be used, committed amounts are to be spent first, followed by assigned amounts and then unassigned amounts. H.Unassigned Fund Balance – General Fund At the end of each fiscal year, the Finance Department will report on the audited year-end financial results. In the event that actual General Fund revenues exceed expenditures and encumbrances, a year- end operating surplus shall be reported. Any year-end operating surplus which exceeds the levels required by the reserve policies, noted above, will be deemed as Unassigned Fund Balance, and shall be appropriated for one-time (non-recurring) expenditures in accordance with the following guidelines, 336 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget III.FUND BALANCE AND RESERVES (continued) subject to City Council approval. Ongoing, or recurring expenditures, are not appropriate uses of available Unassigned Fund Balance. 1.Public Safety equipment or non-recurring programs 2.Asset Management reserves 3.Capital improvement projects 4.Reduction of unfunded liabilities related to CalPERS pension and Other Post- Employment Benefits (OPEB) 5.Reduction, or avoidance, of City debt IV.TRANSACTIONS AND USE TAX FUNDING (MEASURE S) A.Measure S Revenue Pursuant to Ordinance 16-06, on November 8, 2016, the people of Temecula approved a local 1% Transactions and Use Tax, effective on April 1, 2017, to maintain 9-1-1 emergency response times, prevent cuts to local paramedic, police, fire protection, school safety patrols, youth/after-school, senior, disabled services, improve freeway interchanges, reduce traffic and provide for other general services. B.Appropriation Priorities of Measure S Revenue In accordance with the approved ballot language related to Measure S, maintaining Public Safety services is the City’s top priority, followed by the appropriate maintenance and replacement of City assets to ensure long-term viability of City operations. As surplus funds are available, the City Council may allocate Measure S funding to capital projects identified in the Capital Improvement Program as well as any associated general services. 1.Public Safety a.Within the Police Department, the City will strive to maintain a target staffing ratio of one sworn officer per 1,000 residents (1:1,000), as outlined in the City’s General Plan. Upon receiving Population Estimate from the California Department of Finance, in May of each year, the Police staffing ratio shall be evaluated, and if the ratio falls below 1:1,000, the City Council may allocate available Measure S resources to meet the target staffing ratio. b.Desired Fire Department staffing levels include four persons per fire engine or fire truck (4-0 staffing). During the Annual Operating Budget process, the Fire staffing ratio shall be evaluated, and if the ratio falls below 4-0 staffing, the City Council may allocate available Measure S resources to meet the target staffing ratio. 337 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget IV.TRANSACTIONS AND USE TAX FUNDING (MEASURE S) (continued) 2.Asset Management/Investment In accordance with the Asset Management and Replacement (AMAR) Policy, noted in Section VI., the City strategically manages the life cycle and replacement of its assets; including capital infrastructure, City facilities and parks, fleet vehicles and equipment, and the City’s technology and communication systems. Ensuring adequate reserves are set-aside for the future replacement of City-owned assets is critical to the long-term viability of the City’s operations. The City’s street and road network serves as the capital infrastructure for public transportation in and around the City. A Pavement Management Study is designed to evaluate the current condition of the road network, and establish a recommended level of investment necessary to properly maintain the condition of the street and road network. The City Council will strive to allocate an amount up to the recommended level of investment, as stated in the most recent Pavement Management Study, to the Capital Improvement Program – Pavement Rehabilitation Program, or other appropriate capital infrastructure projects designated for street and road network improvements. The City Council will strive to allocate an amount to be deposited into each asset replacement fund, based on the results of the specific asset management plan conducted periodically for each grouping of asset types (i.e. facilities, parks, vehicles and technology). 3.Capital Improvement Projects A Capital Improvement Project is defined as a major project, which exceeds $30,000 in cost, has a long-term life span, and is generally non-recurring. The City Council may allocate available Measure S resources to fund projects identified in the Capital Improvement Program. 4.General Services Operations and maintenance costs associated with City programs, administration and general services to the public are considered eligible appropriations of Measure S resources, so long as the abovementioned priorities are considered first. a.Operations and maintenance costs related to the addition of a new City facility, program or service funded by Measure S, shall have priority over existing City general services. 338 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget V.CONTINGENCY PLANNING In response to adverse financial and economic conditions that could negatively impact the City’s fiscal health, a Contingency Plan will provide for a measured response to potential fiscal challenges, as opposed to reactionary decision-making that could hinder the long-term financial solvency of the City. In accordance with Budget Policies III.B and III.C, the City will strive to maintain reserves in the amount of 25% of General Fund operating expenditures. Eligible uses of these reserve funds are outlined in the aforementioned policy; however this Contingency Plan will address the hierarchy of utilizing reserve funds, in the event the City experiences significant or sudden fiscal constraints. The type of fiscal challenge will dictate the appropriate budgetary measure to implement in order to ensure solvency. If the fiscal constraint cannot be absorbed by annual budgetary savings, the following hierarchy shall be followed: A.One-Time Events In the event the City is faced with a non-recurring fiscal constraint, such as a State mandated payment or a natural disaster, the use of reserve funds is an appropriate mitigation. The Secondary Reserve for Contingencies shall be utilized first, and fully exhausted prior to utilizing the Economic Uncertainty Reserve. B.Ongoing Fiscal Constraints In the event the City experiences the loss of a major revenue source outside of the City’s control (i.e. acts of legislation, corporate decisions and/or economic downturn), the City will need to adjust its operations in order to maintain a balanced budget. Circumstances may arise when the City is unable to react quick enough to offset a sudden loss in revenue, and will be required to utilize reserves to supplant the current Operating Budget. The Secondary Reserve for Contingencies shall be utilized first, and fully exhausted prior to utilizing the Economic Uncertainty Reserve. Continued use of reserve funds shall not exceed two budget cycles, to allow adequate time for the implementation of operational changes, while limiting the ongoing dependency on reserves. Implementation of Contingency Plan actions requires the majority approval of the City Council. 339 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI.STAFFING POLICY A.Regular Staffing 1.The budget will fully appropriate the resources needed for authorized regular staffing. 2.Regular full-time benefitted employees will represent the core work force and the preferred means of staffing ongoing, year-round program activities and services. The City will strive to provide competitive compensation and benefit schedules for its authorized regular work force. Each regular employee will: a.Fill an authorized regular position; b.Receive salary and benefits consistent with labor agreements or other City Council approved compensation plans. 3.To manage the growth of the regular work force and overall staffing costs, the City will follow these procedures: a.The Council will authorize all regular positions. b.The Human Resources Department will coordinate and approve the hiring of all regular employees. c.Supplement core staff with a balanced workforce consisting of part-time, contract, and independent contractors. d.All requests for additional regular positions will include evaluations of: •The necessity, term and expected results of the proposed activity; •Staffing and material costs including salary, benefits, equipment, uniforms, clerical support and facilities; •The ability of private industry to provide the proposed service; •Additional revenues or cost savings, which may be realized. e.Periodically, and before any request for additional regular positions, existing programs will be re-evaluated to determine if services can be provided with existing regular employees. f.The City will make every effort to conduct an internal recruitment to fill regular positions. The City will evaluate the advantages and disadvantages of conducting an internal recruitment versus an external recruitment on a case- by-case basis. B.Project Staffing 1.The hiring of project employees will not be used as an incremental method for expanding the City's regular work force. 340 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI.STAFFING POLICY (continued) 2.Project employees include all employees other than regular employees, temporary staffing, elected officials and volunteers. Project employees will generally augment regular City staffing as extra-help employees, seasonal employees, contract employees, interns and work-study assistants. 3.The City Manager and Department Directors will encourage the use of project employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than full-time, year-round staffing is required. Under this guideline, project employees will be hired for up to one year at a time in conjunction with the annual operating budget on an at-will basis. Moreover, project employee hours will generally not exceed 50% of a regular, full-time position (1,000 hours annually). There may be limited circumstances where the use of project employees on an ongoing basis in excess of this target may be appropriate due to unique programming or staffing requirements. However, any such exceptions must be approved by the City Manager based on the review and recommendation of the Human Resources Department. C.Temporary Staffing 1.Temporary Staffing agencies can be contacted only in the case of a short-term assignment such as sick leave, disability leave, maternity leave, etc. 2.The City will pay the Temporary Staffing Agency a fair base rate for the employee with a negotiated markup while the temporary employee is providing work for the City. D.Work Hours 1.Regular employee, project employee, and temporary employee work hours will be based on the needs of the City and the position. 2.Employee work hours may be flexed in an effort to minimize overtime. E.Overtime Management 1.Overtime should be used only when necessary and when other alternatives are not feasible or cost effective. 2.All overtime must be pre-authorized by a Department Director or delegated in accordance with existing policy. 3.Departmental operating budgets should reflect anticipated annual overtime costs and departments will regularly monitor overtime use and expenditures. 341 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI.STAFFING POLICY (continued) 4.When considering the addition of regular, project, or temporary staffing, the use of overtime as an alternative will be considered. The department will take into account: a.The duration that additional staff resources may be needed; b.The cost of overtime versus the cost of additional staff; c.The skills and abilities of current staff; d.Training costs associated with hiring additional staff; e.The impact of overtime on existing staff; f.The impact on quality of services. F.Independent Contractors Independent contractors are not City employees. They may be used in two situations: 1.Short-term, peak workload assignments to be accomplished using personnel contracted through an outside employment agency (OEA). In this situation, it is anticipated that City staff will closely monitor the work of OEA employees and minimal training will be required. However, they will always be considered the employees of the OEA and not the City. All placements through an OEA will be coordinated through the Human Resources Department and subject to the approval of the Human Resources Department. 2.Construction of public works projects and delivery of operating, maintenance or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills and equipment will generally be determined and provided by the contractor. Contract awards will be guided by the City's purchasing policies and procedures. G.Productivity The City will repeatedly monitor and review the City’s methods of operation to ensure that services continue to be delivered in the most cost-effective manner possible. This review process encompasses a wide range of productivity issues, including: 1.Analyzing systems and procedures to identify and remove unnecessary review requirements. 2.Evaluating the ability of new technologies and related capital investments to improve productivity. 3.Developing the skills and abilities of all City employees. 342 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI.STAFFING POLICY (continued) 4.Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance. 5.Evaluating the ability of the private sector to perform the same level of service at a lower cost. 6.Periodic formal reviews of operations on a systematic, ongoing basis. 7.Maintaining a decentralized approach in managing the City's support service functions. Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by: a.Encouraging accountability by delegating responsibility to the lowest possible level; b.Stimulating creativity, innovation and individual initiative; c.Reducing the administrative costs of operation by eliminating unnecessary review procedures; d.Improving the ability of the organization to respond to changing needs, and identify and implement cost-saving programs; e.Assigning responsibility for effective operations and citizen responsiveness to the department. H.Contracting for Services – Private Sector 1.General Policy Guidelines a.Contracting with the private sector for the delivery of services may provide the City with a significant opportunity for cost containment and productivity enhancements. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost-effective programs. b.Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies and ongoing operating and maintenance services. c.In evaluating the costs of a private section contracts compared with in- house performance of the service, indirect, direct, and contract administration costs of the City will be identified and considered. d.Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below. 343 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI.STAFFING POLICY (continued) e.For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition reassignment to absorption by the contractor. 2.Evaluation Criteria – Within the general policy guidelines stated above, the cost effectiveness of contract services in meeting established service levels will be determined on a case-by-case basis using the following criteria: a.Is a sufficient private sector market available to competitively deliver this service and assure a reasonable range of alternative service providers? b.Can the contract be effectively and efficiently administered? c.What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? d.Can a private section contractor better respond to expansions, contractions or special requirements of the service? e.Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as contractor’s performed after bid award? f.Does the use of contract services provide us with an opportunity to redefine service levels? g.Will the contract limit our ability to deliver emergency or other high priority services? h.Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for this delivery? I.Contracting for Services – Government Service Contracts 1.General Policy Guidelines: a.Contracting with other government entities for the delivery of services such as police and fire provides the City with significant opportunities for cost containment and productivity enhancements. The City utilizes government service contracts to deliver municipal services as a key element in the City’s continuing efforts to provide cost-effective programs. 344 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI.STAFFING POLICY (continued) b.Police Contract Services – The City contracts with Riverside County Sheriff’s Department for police services. Under this contract the City maintains a ratio of one (1) uniformed police officer for every one thousand (1,000) residents. The City will ensure that contracted staffing levels are compatible with the City population and needs. Contracting with the County facilitates an efficient, effective and affordable model of policing for the community. The police contract allows the City to partner with the County to leverage resources to reduce costs for supervision, administration, training, clerical support, vehicles and equipment. c.Fire Contract Services - The City contracts with the Riverside County Fire Department for all fire services. Contracting with the County facilitates an efficient, effective and affordable model of fire protection, disaster preparedness, fire prevention, and emergency operation services for the community. The fire contract allows the City to partner with the County to leverage resources to reduce costs for supervision, administration, training, clerical support, vehicles and equipment. J.Contracting for Services – Regional Approach 1.A regional approach to public services leverages economies of scale to improve outcomes and services to the citizens. Therefore, prior to entering into private or government service contracts, the City will require the completion of a systematic assessment to determine whether a regional approach to providing services is necessary. a.Animal Control Services - The City contracts with Animal Friends of the Valleys for animal control services and the County of Riverside (via the Southwest Community Financing Authority) for animal sheltering services. Contracting with multi-agencies for these services demonstrates a regional approach of leveraging resources to provide efficient services (at a reduced cost). K.Comprehensive Annual Leave Time Payout 1.Upon an employee’s separation from City service, the employee shall have the option to defer their official separation date to that which corresponds to the exhaustion of the employee’s Comprehensive Annual Leave (CAL) balance. 2.When an employee vacates a position using paid time off (e.g. Comprehensive Annual Leave) for an extended period of time, the vacant position will be evaluated by the Department Director, and upon City Manager approval, the Department Director may fill the vacant position in order to continue operations 345 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VI.STAFFING POLICY (continued) without disruption to City services. In the event the department does not have adequate savings to offset the cost to fill the vacancy, the City Manager is authorized to transfer an amount equal to the funding shortfall from the General Fund Non-Departmental Account No. 001.199.999.5353 – Staffing Continuity Reserve to the affected department. VII.ASSET MANAGEMENT AND REPLACEMENT The City has established multiple asset management and replacement funds to accumulate the necessary financial resources to properly maintain City assets over the long-term. The replacement funds are designated for the purpose of purchasing replacement assets at the end of the item’s useful life. Vehicles, equipment, technology, and facilities are tracked on separate replacement schedules, used to determine the annual contribution amounts for each department owning an eligible asset. The annual contribution amounts are equivalent to the estimated cost to replace the asset at the end of its useful life divided by the number of years of useful life. A.Replacement Funds 1.Fund 310 – Vehicles and Equipment Fund. Eligible assets include vehicles and large equipment items that have a useful life longer than three years and cost in excess of $10,000. 2.Fund 325 – Technology Replacement Fund. Eligible assets include those technology-related assets that have a useful life longer than three years and cost in excess of $5,000. 3.Fund 335 – Support Services Replacement Fund. Eligible assets include copier machines utilized by all City departments and maintained by the Information Technology/Support Services department. 4.Fund 350 – Facilities Replacement Fund. Eligible assets include City buildings, systems, and infrastructure necessary to properly operate and maintain all City facilities. 5.Fund 191 – Streetlight Replacement Fund. This fund was established when the City acquired the streetlight network from Southern California Edison, in order to have available resources to repair and replace the light standards, bulbs and other infrastructure of the streetlight network. Resources for this fund are accumulated through Service Level B rate and charges assessed on the properties utilizing the Citywide residential streetlight network. 346 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VII.ASSET MANAGEMENT AND REPLACEMENT (continued) The funds are discretionary in nature and may be reappropriated by the City Council to provide financial reserves to respond to natural disasters and other emergencies; provide a source for internal loans and liquidity; or serve as collateral for City debt issues. VIII.CAPITAL FINANCING AND DEBT MANAGEMENT A.Capital Financing 1.The City will consider the use of debt financing only for one-time capital improvement projects and only under the following circumstances: a.When the project's useful life will exceed the term of the financing; b.When project revenues or specific resources will be sufficient to service the long-term debt. 2.The City will integrate debt issuances with the objectives of the Capital Improvement Program and will incorporate such integration in the formulation of the City’s Financial Strategic Plan. 3.Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. The issuance of short-term instruments such as revenue, tax or bond anticipation notes is excluded from this limitation. (See Investment Policy) 4.Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes or developer agreements when benefits can be specifically attributed to users of the facility. Accordingly, development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community facilities. 5.Transportation related impact fees are a major funding source in financing transportation system improvements. However, revenues from these fees are subject to significant fluctuation based on the rate of new development. Accordingly, the following guidelines will be followed in designing and building projects funded with transportation impact fees: a.The availability of transportation impact fees in funding a specific project will be analyzed on a case-by-case basis as plans and specification or contract awards are submitted for City Manager or Council approval. b.If adequate funds are not available at that time, the Council will make one of two determinations: 347 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) c.Defer the project until funds are available; d.Based on the high priority of the project, advance funds from the General Fund, which will be reimbursed as soon as funds become available. Repayment of General Fund advances will be the first use of transportation impact fee funds when they become available. 6.The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in funding capital improvements: a.Factors Favoring Pay-As-You-Go Financing: •Current revenues and adequate fund balances are available or project phasing can be accomplished; •Existing debt levels adversely affect the City’s credit rating; •Market conditions are unstable or present difficulties in marketing. b.Factors Favoring Long Term Financing: •Revenues available for debt service are deemed sufficient and reliable so that long-term financings can be marketed with investment grade credit ratings; •The project securing the financing is of the type, which will support an investment grade credit rating; •Market conditions present favorable interest rates and demand for City financings; •A project is mandated by State or Federal requirements, and resources are insufficient or unavailable; •The project is immediately required to meet or relieve capacity needs and current resources are insufficient or unavailable. B.Debt Management 1.The City will not obligate the General Fund to secure long-term financings except when marketability can be significantly enhanced. 2.An internal feasibility analysis will be prepared for each long-term financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt service. 348 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) 3.The City will generally conduct financings on a competitive basis. However, negotiated financings may be used due to market volatility or the use of an unusual or complex financing or security structure. 4.The City will seek an investment grade rating (Baa/BBB or greater) on any direct debt and will seek credit enhancement such as letters of credit or insurance when necessary for marketing purposes, availability, and cost-effectiveness. 5.The City will monitor all forms of debt annually coincident with the City’s Financial Strategic Plan preparation and review process and report concerns and remedies, if needed, to the Council. 6.The City will diligently monitor its compliance with bond covenants, including but not limited to any Federal tax compliance requirements with respect to any tax- exempt debt obligations, and ensure its adherence to applicable regulations. 7.The City will maintain good, ongoing communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement). 8.The City will periodically review the requirements of, and will remain in compliance with, any continuing disclosure undertakings, particularly under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 with respect to debt issues. 9.The City will diligently monitor the use of proceeds from its debt issues, to ensure that the proceeds will be directed to the intended use. The City will maintain records of the intended use of the proceeds when the debt was originally issued (by keeping related documents, such as the Official Statements, tax certificates, as applicable) and the use of the proceeds at the time they are expended. Such records shall be retained so long as the debt issue (and any subsequent debt issue which refunded the debt) remains outstanding and for three years following the final maturity or redemption. The City shall consult legal counsel regarding the use of proceeds that is a change from the original intended purpose. 10.So long as required by California Government Code Section 8855(k), the City shall file annual report(s) to the California Debt and Investment Advisory Commission (“CDIAC”) in accordance with CDIAC’s requirements on a timely basis. The City shall retain a copy of each such annual report. 11.In connection with each debt issue, the City will file or cause Bond Counsel or another applicable member of the financing team to file on behalf of the City, a report of proposed issuance and a report of final sale, as required by California Government Code Section 8855(i) and (j). 349 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) C.Debt Capacity 1.General Purpose Debt Capacity. The City will carefully monitor its levels of general-purpose debt. Because our general-purpose debt capacity is limited, it is important that we only use general-purpose debt financing for high-priority projects where we cannot reasonably use other financing methods for two key reasons: a.Funds borrowed for a project today are not available to fund other projects tomorrow; b.Funds committed for debt repayment today are not available to fund operations in the future. In evaluating debt capacity, general-purpose annual debt service payments should generally not exceed 10% of General Fund revenues; and in no case should they exceed 15%. Further, direct debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement outlays will be funded from long-term financings. D.Independent Disclosure Counsel For any public offering debt issue, the City will retain independent disclosure counsel to assist with the preparation of the official statement or any other similar offering document and the continuing disclosure agreement. The roles of bond counsel and disclosure counsel may be served by the same firm, based on the City’s determination on a case-by-case basis. E.Land-Based Financings 1.Public Purpose. There will be a clearly articulated public purpose in forming an assessment or special tax district in financing public infrastructure improvements. This should include a finding by the Council as to why this form of financing is preferred over other funding options such as impact fees, reimbursement agreements or direct developer responsibility for the improvements. 2.Eligible Improvements. Except as otherwise determined by the Council when proceedings for district formation are commenced, preference in financing public improvements through a special tax district will be given for those public improvements that help achieve clearly identified community facility and infrastructure goals in accordance with adopted facility and infrastructure plans as set forth in key policy documents such as the General Plan, Specific Plan, Facility or Infrastructure Master Plans, or Capital Improvement Plan. 350 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) Such improvements include study, design, construction and/or acquisition of: a.Public safety facilities; b.Major transportation system improvements, such as freeway interchanges; bridges; intersection improvements; construction of new or widened arterial or collector streets (including related landscaping and lighting); sidewalks and other pedestrian paths; transit facilities; and bike paths; c.Storm drainage, creek protection and flood protection improvements; d.Parks, trails, community centers and other recreational facilities; e.Open space; f.Cultural and social service facilities; g.Other governmental facilities and improvements such as offices, information technology systems and telecommunication systems. 3.Active Role. Even though land-based financings may be a limited obligation of the City, we will play an active role in managing the district. This means that the City will select and retain the financing team, including the financial advisor, bond counsel, trustee, appraiser, disclosure counsel, assessment engineer, special tax consultant and underwriter, as appropriate. Any costs incurred by the City in retaining these services will generally be the responsibility of the property owners or developer and will be advanced via a deposit when an application is filed; or will be paid on a contingency fee basis from the proceeds from the bonds. 4.Credit Quality. When a developer requests a district, the City will carefully evaluate the applicant’s financial plan and ability to carry the project, including the payment of assessments and special taxes during build-out. This may include detailed background, credit and lender checks, and the preparation of independent appraisal reports and market absorption studies. For districts where one property owner accounts for more than 25% of the annual debt service obligation, a letter of credit further securing the financing may be required. 5.Reserve Fund. A reserve fund should be established in the lesser amount of: the maximum annual debt services; 125% of the annual average debt service; or 10% of the bond proceeds. 351 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) 6.Value-to-Debt Ratios. The minimum value-to-debt ratio should generally be 4:1. This means the value of the property in the district, with the public improvements, should be at least four times the amount of the assessment or special tax debt. In special circumstances, after conferring and receiving the concurrence of the City’s financial advisor and bond counsel that a lower value- to-debt ratio is financially prudent under the circumstances; the City may consider allowing a value-to-debt ratio of 3:1. The Council should make special findings in this case. 7.Appraisal Methodology. Determination of value of property in the district will be based upon the full case value as shown on the ad valorem assessment roll or upon an appraisal by an independent Member Appraisal Institute (MAI). The definitions, standards and assumptions to be used for appraisals will be determined by the City on a case-by-case basis, with input from City consultants and district applicants, and by reference to relevant materials and information promulgated by the State of California, including the Appraisal Standards for Land Secured Financings prepared by the California Debt and Investment Advisory Commission. 8.Capitalized Interest During Construction. Decisions to capitalize interest will be made on a case-by-case basis, with the intent that if allowed, it should improve the credit quality of the bonds and reduce borrowing costs, benefiting both current and future property owners. 9.Maximum Burden. Annual assessments (or special taxes in the case of Mello- Roos or similar districts) should generally not exceed 1% of the sales price of the property; and total property taxes, special assessments and special taxes payments collected on the tax roll should generally not exceed 2%, with priority going toward special assessments and/or special taxes used to offset any negative fiscal impact of providing municipal services, as determined by a Fiscal Impact Analysis. 10.Benefit Apportionment. Assessments and special taxes will be apportioned according to a formula that is clear, understandable, equitable and reasonably related to the benefit received by, or burden attributed to, each parcel with respect to its financed improvement. No annual escalation factor will be permitted for special assessments or special taxes that support debt service on bonds utilized to finance public infrastructure. Annual escalation factors on special assessments and/or special taxes used to fund municipal services shall be as identified in the Fiscal Impact Analysis. 11.Special Tax District Administration. In the case of Mello-Roos or similar special tax districts, the total maximum annual tax should not exceed 110% of annual debt service. The rate and method of apportionment should include a back-up 352 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) tax in the event of significant changes from the initial development plan, and should include procedures for prepayments. 12.Foreclosure Covenants. In managing administrative costs, the City will establish minimum delinquency amounts per owner, and for the district as a whole, on a case-by-case basis before initiating foreclosure proceedings. 13.Disclosure to Bondholders. In general, each property owner who accounts for more than 10% of the annual debt service or bonded indebtedness must provide ongoing disclosure information annually as described under SEC Rule 15(c)-12. 14.Disclosure to Prospective Purchasers. Full disclosure about outstanding balances and annual payments should be made by the seller to prospective buyers at the time that the buyer bids on the property. It should not be deferred to after the buyer has made the decision to purchase. When appropriate, applicants or property owners may be required to provide the City with a disclosure plan. F.Conduit Financings 1.The City will consider requests for conduit financing on a case-by-case basis using the following criteria: a.The City’s bond counsel will review the terms of the financing, and render an opinion that there will be no liability to the City in issuing the bonds on behalf of the applicant; b.There is a clearly articulated public purpose in providing the conduit financing; c.The applicant is capable of achieving this public purpose. 2.This means that the review of requests for conduit financing will generally be a two-step process: a.First asking the Council if they are interested in considering the request, and establishing the ground rules for evaluating it; b.And then returning with the results of this evaluation and recommending approval of appropriate financing documents if warranted. This two-step approach ensures that the issues are clear for both the City and applicant, and that key policy questions are answered. 3.The work scope necessary to address these issues will vary from request to request and will have to be determined on a case-by-case basis. Additionally, the City should generally be fully reimbursed for our costs in evaluating the request; however, this should also be determined on a case-by-case basis. 353 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) G.Refinancings 1.General Guidelines. Periodic reviews of all outstanding debt will be undertaken to determine refinancing opportunities. Refinancings will be considered (within Federal tax law constraints) under the following conditions: a.There is a net economic benefit; b.It is needed to modernize covenants that are adversely affecting the City’s financial position or operations; c.The City wants to reduce the principal outstanding in order to achieve future debt service savings, and it has available working capital to do so from other sources. 2.Standards for Economic Savings. In general, refinancing for economic savings will be undertaken whenever net present value savings of at least five percent (5%) of the refunded debt can be achieved. a.Refinancings that produce net present value savings of less than five percent will be considered on a case-by-case basis, provided that the present value savings are at least three percent (3%) of the refunded debt. b.Refinancings with savings of less than three percent (3%), or with negative savings, will not be considered unless there is a compelling public policy objective. H.Types of Debt That May Be Issued 1.To implement the financing (or refinancing) objectives, the City will consider the issuance of generally accepted types of debt, including: a.Revenue Bonds – limited-liability obligations tied to a specific enterprise or special fund revenue stream where the projects financed clearly benefit or relate to the enterprise or are otherwise permissible uses of the special revenue; b.Special Assessment/Special Tax Bonds – limited liability obligations secured by special assessments or special taxes as described above under “Land-Based Financings”; 354 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) c.General Fund Supported Lease Revenue Bonds or Certificates of Participation – generally involves a lease arrangement between the City and a joint powers authority (or another entity), whereby bonds are issued by the authority for the financing of the project, and the City agrees to make lease payments in sufficient amounts to secure debt service payments on the bonds. d.General Obligation Bonds – bonds secured by a dedicated property tax override (i.e., a property tax in excess of the 1% basic ad valorem property tax rate) that will be issued only after voter approval pursuant to the State Constitution and other applicable laws. e.Tax Increment Bonds – bonds secured by a portion of ad valorem property tax that are allocated to a successor agency (to a former redevelopment agency) or another entity formed pursuant by law (such as an enhanced infrastructure financing district or a community revitalization infrastructure district). The successor agency will consider issuance of bonds for refunding purposes. The City has not yet formed any enhanced infrastructure financing district, community revitalization infrastructure district or any similar entity, and will undertake applicable legal and feasibility analysis at the time of consideration of the formation of any such entity. f.Conduit Financing Bonds – bonds as described above under “Conduit Financings,” for which debt service will be secured by the applicant’s payments and the role of the City (or the City affiliated entity) will be limited to be the conduit issuer, without financial liability. 2.The above list is not exhaustive. The City may from time to time consider other types of debt to accommodate its financing and refinancing objectives. I.Policy Goals Related to Planning Goals and Objectives 1.It is a policy goal of the City to protect taxpayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs. 2.The City is committed to financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration, including debt issuance and management. 355 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) 3.The City will comply with applicable State and Federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges. J.Creation of Services Community Facilities Districts 1.Introduction a.It is the City’s goal to support new development projects that address public need and provide a public benefit. In consideration of these projects, the City desires to ensure that the provision of both general services and public safety services are addressed. b.The City shall require developments that propose an increase in a higher density residential use than what is currently allowed by the General Plan or Zoning Code to form, or annex into, a Community Facilities District (CFD) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, for the purposes of providing municipal services and public safety services. c.The City shall make the final determination as to which public financing mechanism, if any, shall be used to assist in the funding of a service. The City may confer with the applicant to learn of any unique circumstances before making its final determination. 2.Eligible Expenses a.All City and any consultant costs incurred in evaluating applications requesting the establishment of CFDs shall be paid by the applicant by advance deposit increments, or as otherwise agreed upon in writing by the City. The City shall not incur any non-reimbursable expense for processing such applications. Expenses not chargeable to the District shall be borne by the applicant. b.In general, the services to be financed by a public services CFD are those identified in the Mello-Roos Community Facilities Act which are provided by the City including: i.Police protection services, including put not limited to, criminal justice services. 356 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) ii.Fire protection and suppression services, and ambulance and paramedic services. iii.Provision of municipal services including, but not limited to, parks and park maintenance, street maintenance, facility maintenance, parkway maintenance, recreation funding, library services, open space, flood and storm protection services, and operation of museums and cultural facilities. iv.Other services as may be permitted pursuant to the Mello-Roos Community Facilities Act as it may be amended from time to time. 3.Selection of Consultants a.The City shall select and solely manage, coordinate, and direct the work of the special tax consultant, assessment engineer, financial advisor, special district administrator, and other professionals and consultants it deems appropriate in relation to the formation of, or annexation into, a Services CFD. 4.Fiscal Impact Analysis (FIA) a.The City shall enter into an agreement with a third-party consultant to conduct a fiscal impact analysis that analyzes the cost of the provision of services to the proposed development. i.The applicant shall be responsible for incurring all costs of the FIA and pay a deposit in advance, or as otherwise agreed upon, in writing, by the City. ii.The FIA shall utilize the final project description, as provided by the applicant, for analysis. The project description must also match that description used for the necessary California Environmental Quality Act (CEQA) analysis. iii.The FIA shall utilize the most current adopted budget data, to be provided by the City, to develop the projected cost of services relative to the proposed development. The most current available data regarding CPI and other inflators, contract increases, expenditure and revenue trends, and future known legislation affecting the City’s budget shall be used. 357 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) iv.The FIA shall maintain a 1:1,000 police officer ratio, as the population of the City continues to increase. v.If the FIA is completed more than one year prior to the completion of the entitlement process, the FIA shall be updated to reflect the most recent budget data. vi.If a significant change in in the City’s fiscal environment occurs between the finalization of the FIA and the completion of the entitlement process, the City may require an updated FIA to be completed. 5.Rate and Method of Apportionment a.The findings of the FIA will be utilized in the determination of the rate and method of apportionment (RMA) for the CFD, as calculated by a third-party special tax consultant, after the proposed development has received its entitlements. b.The RMA should provide for an annual increase in the maximum special tax. c.For residential components of development projects, the projected ad valorem tax and other direct and overlapping debt for the proposed CFD shall not exceed 2.0% of the anticipated initial sales price to the ultimate home buyer, per City policy. Any deviations from the foregoing will not be permitted unless specifically approved by the City Council. d.The term of the Services CFD shall be in perpetuity. e.The City will consider the apportionment of assessments to those properties that are found by the assessment engineer to be benefited by the municipal services provided. The assessment engineer will review the services provided to each parcel in order to comply with the requirements of Proposition 218 and applicable State statutes. f.The rate and method of special taxes will be structured in such a manner as to result in a fair and reasonable taxing structure. The City and its special tax consultant will consider input from the proponent of the development project, but the City will make the final determination. 358 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) 6.Deposit/Reimbursement Agreement a.As stipulated in Section B.1 of this policy, all City and any consultant costs incurred in evaluating applications requesting the establishment of CFDs shall be paid by the applicant by advance deposit increments, or as otherwise agreed upon in writing by the City. b.The City and the applicant shall enter into a Deposit/Reimbursement Agreement that stipulates the terms of payment for the costs in conducting proceedings for the formation of the Services Community Facility District. c.The Finance Director may draw upon the deposits to pay costs including, but not limited to fees and expenses of any consultants employed in connection with the formation or annexation of the CFD; the costs of publication of notices; appraisal or other studies determined necessary; and reasonable charges for City staff time. 7.Conditions for Project Approval for New Projects a.Effective upon adoption of this policy, the City shall require all developments that propose an increase in a higher density residential use than what is currently allowed by the General Plan or Zoning Code to form or annex into a CFD pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, for the purposes of providing general municipal services and public safety services, for the purpose of offsetting the cost of providing said services to new residents. Determination of an eligible CFD will be made at the discretion of the City. If an eligible CFD does not exist, a new services CFD formation will be required. It is the City’s goal to provide a consistent level of service to all City residents. b.The City may choose to enter into a Development Agreement with the applicant, requiring the development to form, or annex into, the Services CFD. c.If no Development Agreement is entered into between the City and the applicant, a condition of approval will be placed upon the project during the entitlement phase, stipulating that prior to the approval of any map, it will be required that the development form, or annex into, a Services CFD. 359 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget VIII.CAPITAL FINANCING AND DEBT MANAGEMENT (continued) d.The City, in conjunction with its financial advisors, shall determine whether the aggregate cost of public services, allowable under statute, shall equal an amount that renders the formation of a District economically both cost-effective and efficient. e.The City will work, on a case by case basis, to determine the appropriate tax rate to be levied for proposed projects, in conjunction with a Services CFD applying for the development of affordable housing, as defined by the California Health and Safety Code. IX.INTERFUND TRANSFERS AND LOANS POLICY A.Establishment of Various Funds The City has established various funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its own revenue sources, expenditures and fund equity B.Transfer Between Funds Any transfers between funds for operating purposes are set forth in the budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from interfund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources. In summary, interfund transfers result in a change in fund equity; interfund borrowings do not, as the intent is to repay the loan in the near term. C.Interfund Loans Interfund loans may be appropriate whenever the loan is expected to be repaid within the immediate future. The most common use of interfund loans is for grant programs, where costs are incurred before drawdowns are initiated and received. Receipt of funds is typically received shortly after the request for funds has been made. 360 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget X.APPROPRIATIONS LIMITATION A.Adopting a Resolution The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article XIII-B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit. B.Supporting Documentation Available for Review The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least fifteen days before Council consideration of a resolution to adopt an appropriations limit. The Council will generally consider this resolution in connection with final approval of the budget. C.Calculating Appropriations The City will strive to develop revenue sources, both new and existing, which are considered non-tax proceeds, in calculating its appropriations subject to limitation. D.Review of User Fees and Charges The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any, that is being provided by the General Fund. An annual inflator is automatically calculated each year based on changes in the Consumer Price Index. E.Support of Legislation or Initiatives The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council. F.Voter Approval to Amend Appropriation Limit The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are in excess of allowable limits. 361 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget XI.PENSION RATE STABILIZATION POLICY A.Establishment of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust The City contracts with the California Public Employees Retirement System (CalPERS) to provide pension benefits to its employees. The pension is funded with a combination of employer and employee contributions. To mitigate the volatility in the employer contribution rates, the City has established a Section 115 Trust to prefund its pension obligations. Assets from the Trust are restricted for the payment of pension obligations. B.Funding of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust The primary benefit of a Section 115 Trust is the flexibility of investment options available to the Trust that cities are prohibited from utilizing. The broader investment options have the ability to generate higher yields and investment earnings, thereby increasing the assets held in trust. To establish the Section 115 Trust, a one-time contribution of $8 million will be deposited as seed funding during Fiscal Year 2017-18. Effective Fiscal Year 2018-19 and every year thereafter until amended by Council; 1.At a minimum, an amount equivalent to 26% of Total Payroll may be deposited into the Section 115 Trust in July for the ensuing fiscal year, so long as the City has adequate cash flow for operations. 2.Thirty percent (30%) of the Operating Budget Surplus within the General Fund may be deposited into the Section 115 Trust, up to a maximum contribution of $2 million per year. The Operating Budget Surplus is defined as the excess amount over the budgeted Revenue over Expenditures calculation. 3.Additional Trust contributions may be programmed through the Annual Operating Budget process each year, as approved by Council. Annual pension liability payments to CalPERS shall be made from the proceeds of the Section 115 Trust, so long as adequate proceeds are available in the Section 115 Trust. XII.SIGNATURE DELEGATION POLICY A.Delegation of City Manager Signature Authority on Contracts and Agreements In accordance with the Budget Resolution Section 1.E-F., the City Manager may authorize expenditures of funds in the amounts up to one-hundred thousand dollars ($100,000). Any expenditures in excess of $100,000 requires City Council action. 362 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget XII.SIGNATURE DELEGATION POLICY (continued) A.Delegation of City Manager Signature Authority, continued With regard to contracts and agreements, the City Manager hereby delegates his signature authority, up to $100,000 to the Assistant City Manager, and up to $60,000 as follows: 1.Temecula Community Service District contracts and agreements may be approved by the Director of Community Services for the following contract types: a.Entertainment, Performance and Event Agreements 2.Public Works contracts and agreements may be approved by the Deputy City Manager or the Director of Public Works for the following contract types: a.Maintenance Agreements b.Minor Construction Agreements 3.“Approved As To Form” approval on all agreements, with the exception of those noted below, may be approved by the Assistant Director of Finance, up to $10,000. All contracts and agreements in excess of $10,000, must be Approved As To Form by the City Attorney, or his/her designee. a.Successor Agency Agreements b.Housing Authority Agreements c.Preservation of Cultural Resource Agreements d.Leases e.Licenses Agreements f.Settlement Agreements B.Delegation of City Manager Settlement Authority In accordance with the Budget Resolution Section 1.G., the City Manager, in consultation with the City Attorney, is authorized to settle personal injury and property damage lawsuits and enter into settlement agreements on behalf of the City, Temecula Community Services District, and the Successor Agency to the Temecula Redevelopment Agency where the amount of the settlement does not exceed one-hundred thousand dollars ($100,000). 1.For all Personal Injury and Property Claim settlements, the City Manager hereby delegates his signature authority to the Director of Human Resources/Risk Management to negotiate settlements up to $10,000. 363 BUDGET AND FISCAL POLICIES Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget XIII.EMERGENCY APPROPRIATION POLICY In the event of an emergency resulting from acts of nature or other unforeseen activity, the City Manager is authorized to appropriate budgetary funds for the emergency purchase of goods and services to address such emergency. In the event the emergency requires a significant Public Works response, an emergency exemption to the Public Works bidding requirements must be approved by the City Council via an Emergency Exemption Resolution. 364 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget SUMMARY OF CHANGES IN AUTHORIZED POSITIONS, PERSONNEL AND BENEFIT COSTS Total authorized Full Time Equivalent (FTE) positions equal 196.45 authorized positions, including one authorized/unfunded position (Office Specialist II in the Public Works department). The total reflects an increase of 17.75 positions compared to the prior year, of which 10.25 were added as part of the Fiscal Year 2021-22 Mid-Year Budget update. All positions added since last fiscal year are summarized by department below: ➢ Community Development (6 positions) ▪ Code Enforcement Officer I (2) ▪ Community Development Technician I ▪ Building Inspector II ▪ Planning Technician ▪ Assistant Director of Community Development ➢ Temecula Community Services District (5 positions) ▪ Senior Recreation Leader ▪ Aquatics Supervisor ▪ Aquatics Coordinator ▪ Community Services Coordinator (previously authorized/unfunded) ▪ Community Services Supervisor (previously authorized/unfunded) ➢ Public Works (4 positions) ▪ Associate Civil Engineer ▪ Supervising Public Works Inspector ▪ Lead Maintenance Worker I ▪ Maintenance Worker I ➢ Human Resources/Risk Management (1 position) ▪ Management Assistant ➢ Economic Development (1 position) ▪ Management Analyst ➢ Information Technology/Support Services (0.5 position) ▪ Senior Administrative Assistant (conversion from ½ to full-time) ➢ Finance (0.25 position) ▪ Senior Accounting Technician-Payroll (conversion from ¾ to full-time) 365 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget Total Authorized Positions remains below the peak in 2007-08 by 14.3 positions. In addition to the Authorized Positions, the City employs a significant number of part-time, non-benefitted Project employees, primarily to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2022-23, an estimated 58.7 full-time equivalents (FTE) will be hired as seasonal and part-time support. Public Safety personnel is supplied through contracts with Riverside County and CalFire. A total of 118.9 Sworn Police Officers and 18 Community Service Officers are included in the Police budget, and a total of 71 Fire personnel are reflected in the Fire Department budget for FY2022-23. Employee Salaries With the June 30, 2022 expiration of the Memorandum of Understanding (MOU) between the City of Temecula and Teamsters Local 911, the City is actively negotiating a successor MOU. As part of the negotiations, a regional salary survey was conducted to compare Temecula salaries with the local market rates. To ensure Temecula’s compensation plan is competitive relative to the region, several positions’ salary ranges are recommended to be adjusted, effective July 1, 2022. The salary and benefits contained in the Proposed Budget reflect the anticipated salary adjustments. Pursuant to Section 47.3 of the MOU and Section 31.3 of the Management Compensation Plan (MCP), a Reclassification Request Process is available to employees whose work has fundamentally changed due to a department reorganization, changes to staffing levels, introduction of new programs or services, and/or reallocations of work and internal reporting relationships. Employees may request an evaluation of their job duties by an independent consultant, to determine the proper job classification for the w ork 366 Annual Operating Budget City of Temecula Fiscal Year 2022-23 Annual Operating Budget performed. In accordance with the provisions of the MOU and MCP, a total of 24 employees are recommended for reclassification, effective July 1, 2022. Employee Benefits The City contributes to the California Public Employees Retirement System (CalPERS), a multiple-employer public employee defined benefit pension plan for all authorized employees and temporary employees who work more than 1,000 hours per year, or who have previously been part of CalPERS pension program. CalPERS provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions and all other requirements are established by the State statute and City ordinance, with the City providing the following benefits: • Tier 1: 2.7% @ 55 formula for employees hired prior to September 11, 2011 • Tier 2: 2.0% @ 60 formula for employees hired after September 11, 2011 • Tier 3: 2.0% @ 62 for employees, new to the CalPERS system, hired after January 1, 2013, in accordance with the Public Employees’ Pension Reform Act of 2013 (PEPRA) The City pays a contribution on behalf of authorized employees; (5% for Tier 1 and 4% for Tier 2 employees), in addition to the required actuarially determined employer contribution rate. The annual cost for the CalPERS pension for eligible personnel for Fiscal Year 2022-23 is budgeted to be $5,872,442. The City provides a Section 125 Flexible Benefits Plan for all authorized employees. The total monthly cafeteria allotment is $1,200 from which employees can purchase health, dental, life, and disability insurance benefits. Also included in this Plan are options for medical and dependent care reimbursement, deferred compensation, or a “cash back” option. The cafeteria allotment is also provided to eligible retirees as part of the City’s retiree health plan. As part of the MOU and MCP agreements, in addition to the cafeteria allotment, the City provides employees a $600 per month contribution to a Health Flex Contribution account to be used for medical, dental or vision premiums, or directed to a Healthcare Flexible Spending Account. Any unused amount not utilized for these purposes will be forfeited. The annual cost of the cafeteria benefit plan for Fiscal Year 2022-23 is estimated to be $4,156,920. 367 Bargaining Minimum Maximum Unit** CITY COUNCIL Councilmember 5.0 600 800 N/A E City Council Subtotal:5.0 CITY MANAGER Assistant City Manager 1.0 13,622 19,248 Exec E Assistant to the City Manager 1.0 10,129 14,311 MCP E City Manager 1.0 N/A 21,557 Contract E Executive Assistant 1.0 4,711 6,657 MCP E Senior Office Specialist 0.75 3,096 3,963 Rep NE City Manager Subtotal:4.75 OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT Economic Development Manager 1.0 8,110 11,459 MCP E Management Analyst 2.0 6,030 8,522 MCP E Administrative Assistant 1.0 4,485 6,337 Rep NE Multimedia Specialist I 1.0 4,829 6,183 Rep NE Office of Public Information & Economic Development Subtotal:5.0 CITY CLERK Deputy City Clerk 1.0 6,824 9,640 MCP E Director of Legislative Affairs/City Clerk 1.0 11,180 15,797 Exec E Management Assistant 1.0 4,485 5,740 Rep NE Records Manager 1.0 6,183 8,735 MCP E Records Technician 1.0 3,592 4,597 Rep NE City Clerk Subtotal:5.0 HUMAN RESOURCES Director of HR/Risk Management 1.0 11,180 15,797 Exec E Human Resources Technician I (Confidential)2.0 4,711 6,657 MCP NE Management Assistant (Confidential) - Limited Term 1.0 4,485 6,337 MCP NE Management Analyst (Risk Management)1.0 8,110 11,459 MCP E Senior Management Analyst 2.0 6,657 9,405 MCP E Human Resources Subtotal:7.0 EMERGENCY MANAGEMENT Management Analyst 1.0 6,030 8,522 MCP E Emergency Management Subtotal:1.0 FINANCE Accountant I 1.0 6,183 7,913 Rep NE Accounting Assistant (Cashier & AP)3.0 4,375 5,600 Rep NE Accounting Technician I 1.0 4,829 6,183 Rep NE Assistant Director of Finance 1.0 8,953 12,650 MCP E Director of Finance 1.0 12,040 17,012 Exec E Fiscal Services Manager 2.0 8,110 11,459 MCP E Management Analyst 1.0 6,030 8,522 MCP E Finance Manager 1.0 6,824 9,640 MCP E Senior Accountant (Confidential)1.0 7,169 10,129 MCP NE Senior Accounting Technician 1.0 5,600 7,169 Rep NE Senior Accounting Technician (Confidential)1.0 5,600 7,913 MCP NE Senior Accounting Technician - Payroll (Confidential)1.0 5,600 7,913 MCP NE Finance Subtotal:15.00 SCHEDULE OF AUTHORIZED POSITIONS Exempt/Non- Exempt FY2022-23 Number of Positions Salary Schedule * Monthly Salary As of July 1, 2022 City of Temecula Fiscal Year 2022-23 Annual Operating Budget 368 Bargaining Minimum Maximum Unit** SCHEDULE OF AUTHORIZED POSITIONS Exempt/Non- Exempt FY2022-23 Number of Positions Salary Schedule * Monthly Salary As of July 1, 2022 City of Temecula Fiscal Year 2022-23 Annual Operating Budget INFORMATION TECHNOLOGY Assistant Director Information Technology/Support Svcs 1.0 9,640 13,622 MCP E Director of Information Technology/Support Svcs 1.0 11,180 15,797 Exec E Information Technology Manager 1.0 8,735 12,341 MCP E Information Technology Specialist l (Confidential)1.0 5,600 7,169 MCP NE Information Technology Specialist Il (Confidential)1.0 5,883 7,531 MCP NE Information Technology Supervisor (Confidential)4.0 7,169 9,176 MCP NE Information Technology Supervisor (Multimedia Services) (Confidential)1.0 7,169 9,176 MCP NE Information Technology Technician lI 1.0 5,073 6,495 MCP NE Senior Administrative Assistant 1.0 4,485 6,030 Rep NE Senior Information Technology Specialist (Confidential) 1.0 6,495 8,314 MCP NE Support Services Office Specialist II - AM 0.6 3,504 4,485 Rep NE Office Specialist II - PM 0.6 3,504 4,485 Rep NE Support Services Supervisor 1.0 4,268 5,464 Rep NE Support Services Technician 0.5 3,504 4,485 Rep NE Information Technology Subtotal:15.7 COMMUNITY DEVELOPMENT Assistant Director of Community Development 1.0 10,908 15,412 MCP E Deputy City Manager 1.0 13,289 18,778 Exec E Principal Management Analyst 1.0 7,348 10,383 MCP E Senior Administrative Assistant 1.0 4,485 6,030 Rep NE SARDA/CDBG Principal Planner 0.35 8,314 11,746 MCP E Planning Assistant Planner 2.0 5,600 7,169 Rep NE Associate Planner I 1.0 6,183 7,913 Rep NE Associate Planner II 1.0 6,824 8,735 Rep NE Community Development Technician I 1.0 4,485 5,740 Rep NE Community Development Technician II (Underfill as Comm Dev Tech I)1.0 4,950 6,337 Rep NE Community Development Technician II 3.0 4,950 6,337 Rep NE Planning Manager 1.0 9,176 12,966 MCP E Planning Technician 1.0 5,073 6,495 Rep NE Principal Planner 0.65 8,314 11,746 MCP E Senior Management Analyst 1.1 6,657 9,405 MCP E Senior Office Specialist 1.0 3,868 4,950 Rep NE Senior Planner 1.0 7,531 10,642 MCP E Building and Safety/Code Enforcement Administrative Assistant 2.0 4,062 5,201 Rep NE Building Inspector I 1.0 5,740 7,348 Rep NE Building Inspector II 4.0 6,337 8,110 Rep NE Building Official 1.0 10,129 14,311 MCP E Code Enforement Officer I 2.0 4,711 6,030 Rep NE Code Enforcement Officer II 1.0 5,201 6,657 Rep NE Field Supervisor - Code Enforcement 1.0 5,978 7,651 Rep NE Plan Checker 1.0 7,720 9,881 Rep NE Senior Code Enforcement Officer 1.0 5,740 7,348 Rep NE Senior Management Analyst 0.9 6,657 9,405 MCP E Community Development Subtotal:34.0 369 Bargaining Minimum Maximum Unit** SCHEDULE OF AUTHORIZED POSITIONS Exempt/Non- Exempt FY2022-23 Number of Positions Salary Schedule * Monthly Salary As of July 1, 2022 City of Temecula Fiscal Year 2022-23 Annual Operating Budget PUBLIC WORKS Administrative Assistant (Underfill as Office Specialist ll .5) 1.0 4,062 5,201 Rep NE Director of Public Works 1.0 12,966 18,320 Exec E Principal Management Analyst 1.0 7,348 10,383 MCP E CIP Administration Associate Civil Engineer 3.0 8,110 10,383 Rep E Associate Engineer II 3.0 7,720 9,881 Rep E Engineering Manager 1.0 11,180 15,797 MCP E Senior Office Specialist 1.0 3,868 4,950 Rep NE Principal Civil Engineer 1.0 10,129 14,311 MCP NE Senior Civil Engineer 1.0 9,176 12,966 MCP E Senior Public Works Inspector 1.0 5,740 7,348 Rep NE Senior Public Works Inspector (Y-Rate)1.0 5,922 7,579 Rep NE Supervising Public Works Inspector 1.0 6,337 8,110 Rep NE Land Development/NPDES Associate Civil Engineer 1.0 8,110 10,383 Rep E Associate Civil Engineer (Underfill as Associate Engineer II)1.0 8,110 10,383 Rep E Associate Engineer I 1.0 6,995 8,953 Rep E Associate Engineer II 1.0 7,720 9,881 Rep E Engineering Tech I 1.0 5,201 6,657 Rep NE Management Assistant 1.0 4,485 5,740 Rep NE Principal Civil Engineer 1.0 10,129 14,311 MCP E Senior Management Analyst (Y-Rate)1.0 6,657 9,405 MCP E Senior Public Works Inspector 2.0 5,740 7,348 Rep NE Traffic Associate Engineer II 1.0 7,720 9,881 Rep E Senior Civil Engineer 1.0 9,176 12,966 MCP E Senior Signal Technician 2.0 6,824 8,735 Rep NE Maintenance (Streets, Facilities, Parks) Custodian Il - Facilities 1.0 2,738 3,504 Rep NE Custodian II (Y-Rate) - Facilities 1.0 3,033 3,882 Rep NE Field Supervisor - Trades 1.0 5,740 7,348 Rep NE Landscape Inspector ll 1.0 5,464 6,995 Rep NE Lead Maintenance Worker - Electrician 1.0 5,740 7,348 Rep NE Lead Maintenance Worker - HVAC 1.0 5,740 7,348 Rep NE Lead Maintenance Worker - Streets 3.0 4,829 6,183 Rep NE Lead Maintenance Worker - Parks 2.0 4,829 6,183 Rep NE Lead Maintenance Worker - Facilities 1.0 5,201 6,657 Rep NE Maintenance Manager 1.0 8,314 11,746 MCP E Maintenance Superintendent 2.0 7,531 10,642 MCP E Maintenance Worker I - Streets 4.0 3,963 5,073 Rep NE Maintenance Worker I - Parks 1.0 3,963 5,073 Rep NE Maintenance Worker I - Facilities 2.0 4,268 5,464 Rep NE Maintenance Worker II - Streets/Parks 3.0 4,375 5,600 Rep NE Management Assistant 1.0 4,485 5,740 Rep NE Management Assistant (Limited Term)1.0 4,485 5,740 Rep NE Park Attendant l 1.0 4,268 5,464 Rep NE Park Attendant ll (Underfill as Park Attendant I)1.0 5,201 6,030 Rep NE Park Attendant ll 1.0 5,201 6,030 Rep NE Senior Landscape Inspector 1.0 6,030 7,720 Rep NE Street Maintenance Superintendent 1.0 7,531 10,642 MCP E Public Works Subtotal:62.0 370 Bargaining Minimum Maximum Unit** SCHEDULE OF AUTHORIZED POSITIONS Exempt/Non- Exempt FY2022-23 Number of Positions Salary Schedule * Monthly Salary As of July 1, 2022 City of Temecula Fiscal Year 2022-23 Annual Operating Budget FIRE Community Development Technician II 2.0 4,950 6,337 Rep NE Fire Inspector I 1.0 6,657 8,522 Rep NE Management Analyst 1.0 6,030 8,522 MCP E Fire Subtotal:4.0 COMMUNITY SERVICES Aquatics Coordinator 1.0 4,950 6,337 Rep NE Aquatics Supervisor l 2.0 5,464 6,995 Rep NE Aquatics Supervisor ll 1.0 5,740 7,348 Rep NE Community Services Assistant 1.0 3,592 4,597 Rep NE Community Services Coordinator I 2.0 4,597 5,883 Rep NE Community Services Coordinator II 2.0 4,829 6,183 Rep NE Community Services Manager 9.0 7,531 10,642 MCP E Community Services Specialist I 2.0 3,963 5,073 Rep NE Community Services Superintendent 2.0 8,314 11,746 MCP E Community Services Supervisor I 4.0 5,330 6,824 Rep NE Community Services Supervisor II 2.0 5,600 7,169 Rep NE Director of Community Services 1.0 12,040 17,012 Exec E Management Aide II 1.0 3,680 4,711 Rep NE Management Assistant 1.0 4,485 6,337 Rep NE Multimedia Coordinator 1.0 5,600 7,169 Rep NE Multimedia Specialist I/ll 1.0 5,073 6,495 Rep NE Office Specialist II 1.0 3,504 4,485 Rep NE Principal Management Analyst 1.0 7,348 10,383 MCP E Theater Technical Assistant 1.0 3,592 4,597 Rep NE Theater Technical Coordinator II 1.0 4,829 6,183 Rep NE Community Services Subtotal:37.0 Total By Department Positions City Council 5.0 City Manager 4.75 Economic Development 5.0 City Clerk 5.0 Human Resources 7.0 Emergency Management 1.0 Finance 15.0 Information Technology 15.7 Community Development 34.0 Public Works 62.0 Fire 4.0 Community Services 37.0 Total of Authorized Positions:195.45 Total of Authorized/Unfunded Positions:1.0 Total per Personnel Model:196.45 *The City is currently in negotiations with its labor union, and an updated salary schedule will be reflected in the Final Annual Operating Budget. Unfunded positions include: (1) Office Specialist II (PW) ** Bargaining Units: Rep = Represented MCP = Management/Confidential Exec = Executive 371 Adopted 2020-21 Unfunded 2020-21 Changes Current 2021-22 Unfunded 2021-22 Changes Proposed 2022-23 Unfunded 2022-23 GENERAL FUND CITY COUNCIL Council Members 5.00 - - 5.00 - - 5.00 - CITY MANAGER City Manager 1.00 - - 1.00 - - 1.00 - Assistant City Manager 0.80 - - 0.80 - 0.20 1.00 - Assistant to the City Manager 1.00 - - 1.00 - (0.30) 0.70 - Executive Assistant 1.00 - - 1.00 - - 1.00 - Management Assistant (Temporary)1.00 - (1.00) - - - - - Office Aide III 0.75 - - 0.75 - (0.75) - - Senior Office Specialist - - - - - 0.75 0.75 - 5.55 - (1.00) 4.55 - (0.10) 4.45 - OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT Administrative Assistant - - - - - 1.00 1.00 - Administrative Assistant (Confidential)0.90 - (0.90) - - - - - Assistant City Manager 0.10 - - 0.10 - (0.10) - - Assistant to the City Manager - - - - - 0.30 0.30 - Economic Development Manager 1.00 - - 1.00 - - 1.00 - Management Aide III (Temporary .5)1.00 - (1.00) - - - - - Management Analyst 1.00 - - 1.00 - 1.00 2.00 - Management Assistant (Confidential)- - 1.00 1.00 - (1.00) - - Multimedia Specialist I - - 1.00 1.00 - - 1.00 - Senior Management Analyst 1.00 - - 1.00 - (1.00) - - 5.00 - 0.10 5.10 - 0.20 5.30 - EMERGENCY MANAGEMENT Director of HR/Risk Management 0.10 - 0.10 0.20 - - 0.20 - Management Aide I 0.30 - (0.30) - - - - - Mangement Analyst - - 1.00 1.00 - - 1.00 - Management Assistant - Limited Term - - - - - 0.10 0.10 - 0.40 - 0.80 1.20 - 0.10 1.30 - HUMAN RESOURCES Administrative Assistant (Confidential)0.10 - (0.10) - - - - - Assistant City Manager 0.05 - - 0.05 - (0.05) - - Director of HR/Risk Management 0.50 - (0.10) 0.40 - - 0.40 - Human Resources Assistant 1.00 - - 1.00 - (1.00) - - Human Resources Technician I - - 1.00 1.00 - 1.00 2.00 - Human Resources Technician II 1.00 - (1.00) - - - - - Management Aide I 0.10 - (0.10) - - - - - Management Analyst - - 0.20 0.20 - - 0.20 - Management Assistant - Limited Term - - - - - 0.40 0.40 - Senior Management Analyst 1.00 - 1.00 2.00 - - 2.00 - 3.75 - 0.90 4.65 - 0.35 5.00 - CITY CLERK Administrative Assistant 1.00 - (1.00) - - - - - Deputy City Clerk - - 1.00 1.00 - - 1.00 - Director of Legislative Affairs/City Clerk 1.00 - - 1.00 - - 1.00 - Management Aide III 1.00 - (1.00) - - - - - Management Assistant - - 1.00 1.00 - - 1.00 - Records Manager 1.00 - - 1.00 - - 1.00 - Records Technician 1.00 - - 1.00 - - 1.00 - 5.00 - - 5.00 - - 5.00 - SCHEDULE OF CHANGES IN ALLOCATED POSITIONS City of Temecula Fiscal Year 2022-23 Annual Operating Budget 372 Adopted 2020-21 Unfunded 2020-21 Changes Current 2021-22 Unfunded 2021-22 Changes Proposed 2022-23 Unfunded 2022-23 SCHEDULE OF CHANGES IN ALLOCATED POSITIONS City of Temecula Fiscal Year 2022-23 Annual Operating Budget FINANCE Accountant II (Confidential)0.83 - 0.06 0.89 - (0.89) - - Accountant I - - - - - 1.00 1.00 - Accounting Assistant 2.00 - - 2.00 - (1.00) 1.00 - Accounting Assistant - Cashier 1.00 - 1.00 2.00 - - 2.00 - Accounting Assistant - Payroll (Conf.)0.75 - - 0.75 - (0.75) - - Accounting Technician I/II 1.00 - - 1.00 - - 1.00 - Accounting Technician II 1.00 - (1.00) - - - - - Assistant Director of Finance - - - - - 1.00 1.00 - Business License Technician 1.00 - (1.00) - - - - - Director of Finance 0.93 - 0.07 1.00 - - 1.00 - Fiscal Services Manager 1.85 - - 1.85 - - 1.85 - Finance Manager - - - - - 0.92 0.92 - Management Analyst 3.00 - (0.06) 2.94 - (1.94) 1.00 - Payroll Coordinator (Confidential)- 1.00 - - 1.00 - - - Purchasing Manager 1.00 - - 1.00 - (1.00) - - Senior Accountant (Confidential)- - - - - 1.00 1.00 - Senior Accounting Technician - - 1.00 1.00 - - 1.00 - Senior Accounting Technician (Confidential)- - - - - 2.00 2.00 - 14.36 1.00 0.07 14.43 1.00 0.34 14.77 - COMMUNITY DEVELOPMENT - PLANNING Administrative Assistant 0.75 - - 0.75 - (0.75) - - Asst. Director of Community Development - - - - - 1.00 1.00 - Assistant Planner 0.75 - 0.10 0.85 - 0.15 1.00 - Assistant Planner (Temp Upgrade)- - - - - 1.00 1.00 - Associate Planner I 2.00 - (1.00) 1.00 - - 1.00 - Associate Planner II 1.50 - 1.50 3.00 - (2.00) 1.00 - Community Development Technician I 0.20 - (0.20) - - 0.10 0.10 - Community Development Technician II 0.20 - 0.20 0.40 - - 0.40 - Deputy City Manager - - - - - 0.50 0.50 - Director of Community Development 0.50 - - 0.50 - (0.50) - - Office Specialist II 0.50 - - 0.50 - (0.50) - - Planning Manager 1.00 - - 1.00 - - 1.00 - Planning Technician 1.00 - - 1.00 - - 1.00 - Principal Management Analyst 0.40 - - 0.40 - - 0.40 - Principal Planner - - - - - 0.65 0.65 - Senior Administrative Assistant - - - - - 0.75 0.75 - Senior Management Analyst 0.10 - - 0.10 - 1.00 1.10 - Senior Office Specialist - - - - - 1.00 1.00 - Senior Planner 0.65 - - 0.65 - 0.35 1.00 - 9.55 - 0.60 10.15 - 2.75 12.90 - 373 Adopted 2020-21 Unfunded 2020-21 Changes Current 2021-22 Unfunded 2021-22 Changes Proposed 2022-23 Unfunded 2022-23 SCHEDULE OF CHANGES IN ALLOCATED POSITIONS City of Temecula Fiscal Year 2022-23 Annual Operating Budget COMMUNITY DEVELOPMENT - BUILDING & SAFETY Administrative Assistant 0.10 - - 0.10 - 1.90 2.00 - Building Inspector I 1.00 - - 1.00 - - 1.00 - Building Inspector II 3.00 - - 3.00 - 1.00 4.00 - Building Official 1.00 - - 1.00 - - 1.00 - Code Enforcement Officer I - - - - - 2.00 2.00 - Code Enforcement Officer II 1.00 - - 1.00 - - 1.00 - Community Development Technician I 1.80 - (1.80) - - 0.90 0.90 - Community Development Technician II 1.80 - 1.80 3.60 - - 3.60 - Deputy City Manager - - - - - 0.25 0.25 - Director of Community Development 0.25 - - 0.25 - (0.25) - - Field Supervisor Code Enforcement 0.95 - - 0.95 - - 0.95 - Office Specialist II 0.50 - - 0.50 - (0.50) - - Plan Checker - - 1.00 1.00 - - 1.00 - Principal Management Analyst 0.20 - - 0.20 - - 0.20 - Senior Administrative Assistant - - - - - 0.10 0.10 - Senior Building Inspector 1.00 - (1.00) - - - - - Senior Code Enforcement Officer 1.00 - - 1.00 - - 1.00 - Senior Management Analyst 0.90 - 0.90 - - 0.90 - Senior Office Specialist 2.00 - - 2.00 - (2.00) - - 16.50 - - 16.50 - 3.40 19.90 - PUBLIC WORKS - LAND DEVELOPMENT Administrative Assistant 0.25 - - 0.25 - (0.25) - - Assistant Engineer II 1.00 - (1.00) - - - - - Associate Civil Engineer 1.00 - - 1.00 - - 1.00 - Associate Engineer I 1.00 - - 1.00 - - 1.00 - Associate Engineer II 2.00 - - 2.00 - (1.00) 1.00 - Director of Public Works 0.15 - - 0.15 - - 0.15 - Engineering Tech I 1.00 - - 1.00 - - 1.00 - Office Specialist II 0.60 - - 0.60 - (0.60) - - Management Assistant - - - - - 0.60 0.60 - Principal Civil Engineer 0.80 - 0.20 1.00 - - 1.00 - Principal Management Analyst 0.10 - - 0.10 - - 0.10 - Public Works Inspector Il 0.75 - (0.75) - - - - - Senior Management Analyst (Y-Rate)- - - - - 1.00 1.00 - Senior Public Works Inspector 0.90 - 0.75 1.65 - - 1.65 - 9.55 - (0.80) 8.75 - (0.25) 8.50 - 374 Adopted 2020-21 Unfunded 20