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HomeMy WebLinkAbout05222025 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 22, 2025 - 9:00 AM CALL TO ORDER: Mayor Brenden Kalfus FLAG SALUTE: Mayor Brenden Kalfus ROLL CALL: Alexander, Kalfus, 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. Speaker cards will be called in the order received. Still images may be displayed on the projector. All other audio and visual use is prohibited. Public comments may also be submitted by email for inclusion into the record. Email comments must be received prior to the time the item is called for public comments and submitted to CouncilComments@temeculaca.gov. All public participation is governed by Council Policy regarding Public Participation at Meetings adopted by Resolution No. 2021-54. JOINT MEETING OF THE 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. Speaker cards will be called in the order received. Still images may be displayed on the projector. All other audio and visual use is prohibited. Public comments may also be submitted by email for inclusion into the record. Email comments must be received prior to the time the item is called for public comments and submitted to CouncilComments@temeculaca.gov. All public participation is governed by Council Policy regarding Public Participation at Meetings adopted by Resolution No. 2021-54. 1. Review Fiscal Years 2026-30 Capital Improvement Program and Fiscal Year 2025-26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District and the Successor Aizencv to the Redevelopment Aizencv Recommendation: That the City Council/Board of Directors review and discuss the proposed Page 1 City Council Agenda May 22, 2025 Fiscal Years 2026-30 Capital Improvement Program (CIP) and Fiscal Year 2025-26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District (TCSD) and the Successor Agency to the Redevelopment Agency (SARDA). Attachments: Agenda Report Transmittal Message FY2025-26 Proposed AOB FY2026-30 Proposed CIP ADJOURNMENT The next regular meeting of the City Council will be held on Tuesday, May 27, 2025, at 5:00 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 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 22, 2025 SUBJECT: Review Fiscal Years 2026-30 Capital Improvement Program and Fiscal Year 2025- 26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District, and the Successor Agency to the Redevelopment Agency PREPARED BY: Jennifer Hennessy, Director of Finance/Treasurer RECOMMENDATION: That the City Council/Board of Directors review and discuss the proposed Fiscal Years 2026-30 Capital Improvement Program and Fiscal Year 2025-26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District and the Successor Agency to the Redevelopment Agency. 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 Redevelopment Agency (SARDA). Any changes to the proposed budgets, as requested at the budget workshop, will be incorporated into the adopted budget and presented to Council at its May 27, 2025 meeting. The attached Transmittal Letter summarizes the highlights of the Fiscal Year 2025-26 proposed Annual Operating Budget and Fiscal Years 2026-30 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 Fiscal Years 2026-30 Capital Improvement Program 3. Proposed Fiscal Year 2025-26 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE May 22, 2025 Honorable Mayor and Members of the City Council: I am pleased to submit the Proposed Annual Operating Budget for the Fiscal Year 2025-26. 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 2025-26 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'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 112,220 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. Law Enforcement and Fire Protection services are provided through contracts with the County of Riverside. Known as Southern California's Wine Country, the City of Temecula is a nationally and internationally known tourist destination welcoming over 3 million visitors a year. Temecula is also an innovative, dynamic economic powerhouse and job center for the region, all the while retaining its small-town charm and character that residents cherish. Offering the finest quality of life, Temecula is listed among the safest cities in the State and Nation per FBI statistics. With a diverse population, citizens enjoy picturesque neighborhoods, a vast array of beautifully manicured parks and trails, multi -cultural dining options, retail stores that include the region's premier shopping destination Promenade Temecula, the highest rated School District in Riverside County for its outstanding academic scores, higher education opportunities including Mount San Jacinto College's Temecula Campus and Cal State San Marcos at Temecula. Annual Operating Budget 1 9 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE As a visitor destination, Temecula also offers a vibrant Old Town with boutique shops, outdoor markets, and a distinct foodie district, Pechanga Resort Casino, Southern California's Wine Country speckled each morning with hot air balloons hovering over grapevines and equestrian trails, - championship golf courses, Vail Ranch Historic Headquarters _ - -- --: comprised of turn -of -the -century old west structures restored into 4 specialty restaurants and retail, and City of Temecula signature _ ------ events, parades, museums and a theater. Temecula's scenic landscape of rolling hills, vineyards and wineries are swept clean r each afternoon with fresh ocean breezes that funnel through the Santa Margarita gap of the coastal mountains providing an ambience that magnifies the beauty of the City and Temecula Valley. =£ ECONOMIC INDICATORS The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections. #,, 19 (D ift ;;d.. Population Median Age Households Average Median # of Jobs Unemployment 112,220 37.5 years 36,914 Income Home Price 54,400 Rate 4.6% $145,129 $771,000 (Mar'25) (Mar'25) (Apr'25) • Estimated Population: up 1.2% from 2024 (source: State Department of Finance) • Median Age: down from 37.7 in 2024 (source: Pop -Facts Report, 2-13-25) • Number of Households: down 0.7% from 2024 (source: Pop -Facts Report, 2-13-25) • Average Household Income: up 2.3% from 2024 (source: Pop -Facts Report, 2-13-25)137195 • April Median Home Price: up 6.2% from 2024 (Source: Southwest Riverside County Association of Realtors) • Number of Jobs: up 0.2% from April 2024 (source: FDD) • March Unemployment Rate: up from 4.1% in April 2024 (Riverside County: 5.1%, CA: 5.3%, Nation: 4.2% (source: FDD & BLS) Temecula has experienced slight increases in the majority of the above economic indicators. Population has increased 1.2% after two consecutive years of declines. Housing prices continue to climb due to the low inventory, with a 6.2% increase in the median home price. Temecula's average household income has increased by 2.3%, while the number of jobs has remained relatively flat over the prior year. Unemployment has increased slightly, but remains lower than both Riverside County and the State. 10 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE LOCAL ECONOMY AND LEGISLATIVE IMPACTS Local Economy As the economic indicators noted above have improved over 2024, the impact to the local economy is evident in the retail activity and sales tax trends. Despite a flattening of Sales Tax revenue in the current year, it is projected to grow at a modest 2.5% next fiscal year, as both national retailers and local entrepreneurs continue to invest in Temecula by opening businesses, undergoing expansion projects and starting new construction. Currently, there are seventeen new businesses slated to open soon, including a hotel, multiple retailers, restaurants and breweries. In addition, several auto dealers are undergoing expansions within the Temecula Auto Mall. , , r �OApN�USE QQ4 L ! F�Ca ESTII �jw�� 2lY[tl jvr f!y! NG 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 residents generated $37,209 in sales tax per capita in 2024, which far outpaced neighboring cities and statewide averages. Per Capita Sales Temecula $14,000 $12,000 Riverside County $10,000 Southern California $8,000 California $6,000 $4,000 $2,000 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 21 22 22 22 22 23 23 23 23 24 24 24 24 Source: HdL Companies 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: 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. Annual Operating Budget 1 11 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE 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: Senate Bill 937 Impact Fee Deferral - SB 937 was signed into law on September 19, 2024 and became effective January 1, 2025. This new law prohibits the local agencies from collecting the fees or charges from a Designated Residential Development Project for the construction of public improvements or facilities until the first occupancy certificate or first temporary certificate of occupancy is issued. The local agency may collect utility service fees at the time of application for service. It may charge the fees prior to the certificate of occupancy if construction does not begin within five years of the date the building permit is issued. The local agency may require the payment of these fees or charges at an earlier time if the conditions specified in the code are met. Assembly Bill 1868 Property Taxation on Affordable Housing — AB 1868 was enacted in 2024 and became effective on January 1, 2025. The bill primarily deals with property taxation and affordable housing, specifically focusing on how county assessors value property for tax purposes when its subject to restrictions for affordable housing. It establishes a rebuttable presumption that the value of property subject to certain affordable housing contracts is no more than the sum of the first mortgage and down payment. GOALS AND OBJECTIVES The City Council recently adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The Temecula 2040 Plan is a living document that reflects C the vision and long-term goals of the City. As Temecula continues to grow and mature,,'rk the Temecula 2040 Plan will be a crucial part of not only maintaining the City's quality of life, but to take a proactive approach and identify specific community needs, goals, 0 Lo and possible improvements. The City of Temecula utilizes the QLMP to formulate and � ���MP �, budget Citywide projects. In addition, the QLMP is used to guide planning, investment -I&TE 4 decisions, to provide vision and continuity for the next phase of the City's journey, and for continuous process improvement in partnership with Temecula's residents. To incorporate the QLMP into the City's budget process, the QLMP includes specific goals based on the Core Values of the QLMP. 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. 12 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE The QLMP outlines 7 Core Values: ® Healthy & Livable City IEEconomic Prosperity C . Safe & Prepared Community BUDGET OVERVIEW aSustainable & Resilient City Transportation Mobility & Connectivity ©Accountable & Responsive City rm Government 0 Equity The Fiscal Year 2025-26 Proposed Budget reflects a structurally balanced, healthy fiscal outlook across all major funds for the City of Temecula. General Fund, Special Revenue Funds and TCSD Fund revenues are growing, albeit at a modest pace, and expenditures include all contractually obligated increases offset by various budget reductions necessary to partially absorb rising costs in Public Safety departments. Major changes from the prior Operating Budget are summarized below. Revenue & Expenditures & Change in Fund Category Transfers In Transfers Out Fund Balance Variance Analysis Change from Change from from Prior Prior Year Prior Year Year Revenue growth attributable to Sales Tax, Measure S Tax and Interest GENERAL FUNDS 9,119,015 (22,028,106) (4,082,295) Earnings. Expenditure reduction due to reduced Capital Project funding, offset by 5.2% increase in Operating Expenditures. Revenue growth attributable to Development Impact Fees. Expenditure reduction due to reduced Capital Project funding from Development SPECIAL REVENUE FUNDS 3,437,195 (13,157,830) 1,745,437 Impact Fees, Measure A, Affordable Housing and Road Maintenance Funds. TEMECULA COMMUNITY SERVICES DISTRICT Revenue growth attributable to the TCSD Operations and Library Funds. (TCSD) 636,008 573,888 (627,045) Expenditure growth due to higher salaries, benefits and internal service fund allocations. Revenue decline due to reduced Redevelopment Property Tax Trust SUCCESSOR AGENCY TO THE REDEVELOPMENT (595660) 429 ,,997 Fund distributions due to the wind down of the former Redevelopment 55,382 AGENCY Agency. Expenditure increase due partly to Depreciation which had not been budgeted in the prior year. Revenue decline due to one-time transfers in the prior year from the Information Technology Fund to the Technology Replacement Fund, and INTERNAL SERVICE FUNDS (4,210,438) (3,351,405) 212,877 a reduced Transfer in from the Measure S Fund to the Facilities Replacement Fund. Expenditure decline due to reduced Capital Project !ALL BUDGETED CITY FUNDS 8,386,120 (37,533,456) funding and one-time transfers. (2,695,645) Assumptions, combined with known contractual obligations are used in forecasting revenue sources, expenditure trends, as well as the long-term financial forecasts. Annual Operating Budget 1 13 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Current year revenue assumptions are based on multiple factors, including input from the City's Sales Tax and Property Tax consultants, input from the State of California, local economic trends and development activity. Assumptions beyond the current year include general inflationary growth projections plus any known development projects, new hotels, expanding businesses and any other specific data that may impact revenue growth. The table below summarizes the growth assumptions for the General Fund Five -Year Revenue Forecast: Summary of Revenue Assumptions FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 Property Tax 4.4% 4.0% 4.0% 4.0% 4.0% Sales and Use Tax 2.5% 3.0% 3.0% 3.5% 3.5% Less: Sales Tax Sharing Agreement 3.0% 3.0% 3.0% 3.0% 3.0% Franchise Fees -7.4% 1.0% 1.0% 1.0% 1.0% Transient Occupancy Tax 1.6% 3.0% 3.0% 5.0% -1.9% Special Tax (Measure C) 9.0% 0.5% 0.5% 0.5% 0.5% Licenses, Permits and Service Charges 13.0% 2.0% 2.0% 2.0% 2.0% Fines and Forfeitures 13.7% 1.0% 1.0% 1.0% 1.0% Use of Money and Property 29.2% 1.0% 1.0% 1.0% 1.0% Intergovernmental Revenues 4.2% 4.0% 4.0% 4.0% 4.0% Reimbursements 5.1% 4.6% 4.9% 4.4% 3.9% Miscellaneous -17.9% 1.0% 1.0% 1.0% 1.0% Assumptions used in forecasting Operating expenditures include the following: ■ Contractual obligations: 0 Negotiated cost of living adjustment of 2.3% for City employees 0 Public Safety labor contracts (9.5% for Sheriff positions, 17.5% for Fire positions) 0 Reclassification of 23 full-time authorized positions 0 CalPERS Pension cost sharing of 3% for eligible employees ■ Council policies: 0 Continuation of the Debt/Liability Paydown Strategy ($8,267,833 in FY25-26 for additional discretionary payments towards the City's CAPERS unfunded pension liability) 0 Annual Replacement allocations for Fleet, Technology, Facilities, Support Services, Street Maintenance and Street Light assets. ■ Expected savings achieved from the Debt/Liability Paydown Strategy ($18.5 million over the ensuing five fiscal years) ■ Actuarially determined contributions to the City's pension and retiree health programs Estimated inflation for non -personnel related expenditures 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. 14 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Ending fund balance for Fiscal Year 2025-26 is to be $35,523,239, FY25-26 General Fund Balance projected 535,523,239 of which $26,680,709 is committed to fulfilling the Fund's policy -level reserves of 25% of Operating Expenditures. A total of $465,524 of fund Ava€fahle 30.WRaao balance is committed to cover the costs of a Sheriff's Deputy position F"undB ace We ian assreneal 7 S.D7fl WO ! 6nl mitteU funded by the Pechanga Tribe. Secondary Rese 15,0w,ow (5%) A total of $8,377,005 in fund balance is unassigned and available for one- a°'°°°° Reserve for Economic time appropriations. l Certainty General Fund Revenue Highlights General Fund revenue is projected to increase by 7.6% over the prior year with a total of $113,978,529. Tax revenues, excluding the transfer from Measure S Fund, are projected to increase by 3%. The transfer of Measure S increases significantly to fund contractual increases in Public Safety expenditures. The General Fund major revenue sources are summarized below: • Sales Tax ($47,340,358) is projected to increase by 2.5% over the prior fiscal year as taxable retail sales are projected to increase slightly, although there are still concerns about the overall trajectory of the economy. • Property Tax ($12,164,898) is projected to increase by 4.4%, due to a stable housing market. Property Tax revenue for Fiscal Year 2025-26 is based on assessed Fiscal Year 2025-26 General Fund Revenue-$113,978,529 Franchise Fees TOT Prop. Tax in Lieu of 4% 4% Measure C VLF � _ // 2% 10% Licenses/Permits 6% Property Tax 11% Measure 5 12% --Transfers In s% Sales Tax I Reimbursements 40% Other 4% 2% valuation from the year prior, which have shown steady growth, as inventory is still low and home prices continue to rise slightly. • Franchise Fees ($4,229,094) are projected to decrease by 7.4% due to lower natural gas rates and continuing declines in cable subscribers. • Transient Occupancy Tax ($4,500,000) is projected to increase by 1.6% over the prior year. Both occupancy rates and the average daily hotel rates have leveled off recently due to concerns over the economy. With the opening of a new hotel in Fiscal Year 2025-26, Transient Occupancy Tax is expected to grow. • Licenses, Permits & Service Charges ($6,623,241) are projected to increase by 13% due to the continuation of development activity within the City. • Intergovernmental Revenues ($11,713,171) are projected to increase by 4.2% due to the increases expected in Property Tax In Lieu of Vehicle License Fees which is driven by property value assessments within the City. Annual Operating Budget 1 15 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE • Operating Transfers In ($5,428,738) are projected to decrease by 35.5% due to a $3 million reduction in the transfer from the City's Pension Trust, in accordance with the City's Debt/Liability Paydown Strategy to fully fund the accrued pension liability by Fiscal Year 2028-29. • Operating Transfers In - Measure S ($13,548,319) will continue to fund 11 Sheriff Deputies, staffing for Fire Station No. 95, funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles, and enhanced park maintenance services. General Fund Expenditure Highlights The largest expenditure of the General Fund is Public Safety, making up 55% 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 Sheriff Department will continue to exceed the staffing goal of one officer per 1,000 residents and the Fire Department will continue to provide four firefighter personnel per engine at all five fire stations. General Fund expenditures total $106,722,837, which represents an 8% increase over the prior fiscal year. • Sheriff's Office ($48,474,402) is increasing by 11.1% over the prior year due to inflationary adjustments in the contract with Riverside County, including a new multi -year labor agreement which includes successive pay adjustments. The budget reflects 117 Sworn Deputies, which includes continued patrol coverage of 210 hours per day, and full staffing for the Metro and CORE Teams. The budget also includes the replacement of four motorcycles. • Fire Department ($13,923,013) is increasing by 25.6% due to inflationary adjustments in the contract with Riverside County combined with the reversal of a one-time CalPERS Retirement offset administered by the State in FY2024-25. The total Fire budget of $26.4 million is offset by the Structural Fire Tax Credit of $12.4 million. The department employs 79 positions and provides four firefighters per engine/truck staffing model. • Non -Safety Departments ($47,128,746) represents a 3.1% increase over the prior year, due primarily to the reclassification of several positions and the calculated 2.3% cost of living adjustment in accordance with the City's labor agreements. • Non -Departmental (-$2,803,324) includes the projected savings in the CAPERS unfunded liability offset by the Retiree Medical Contribution and Property Tax Administrative fees. 16 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Operating Transfers Out & One -Time Payments This category of expenditures reflects funds that are transferred to meet the Debt/Liability Paydown Strategy, to the Capital Improvement Program and the Fire Facility Acquisition Fund. • CaIPERS Unfunded Pension Liability ($8,267,833) to further reduce the City's annual pension costs by an estimated $3.5 million per year. • Capital Improvement Fund ($500,000) to support the General Plan Update project. 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 throughout the fiscal year, adjustments to revenue or expenditure budgets will be recommended 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 2025-26 Measure S revenue is projected to be $40,028,469. Measure S appropriations of $42,771,911 reflect the priorities established in Budget Policy IV — Transactions and Use Tax Funding. Public Safety (32%) The budget includes $13,754,539 of Measure S funding to support the contracts for the Sheriff and Fire Departments. Measure S provides for 11 Sheriff's Deputies, staffing for Fire Station No. 95, and funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles. Measure S - FY25-26 Appropriations $42,771,911 Asset Management/Investment (5%) 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 2025- 26, Measure S is contributing $1,250,000 to the Facilities Replacement Fund, and $1,000,000 to the Streets Maintenance Fund. Capital Improvement Program (21%) The budget includes an additional $8,809,109 appropriation in Fiscal Year 2025-26 to complement the current year budget of $34,283,385 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. Annual Operating Budget 1 17 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Major Projects funded by Measure S include: • Fire Station 73 Gym/Garage - to construct a gym, storage room and a second garage at the station to house the squad and additional vehicles. • Fire Station 84 Renovation — to completely renovate the existing station including the addition of a gym, upgraded electrical, windows, paint and renovated living quarters. • Ronald Reagan Sports Park Hockey Rink - to renovate the existing outdoor hockey rink by installing new flooring, dasher boards, scoreboard and a roof structure. • Ronald Reagan Sports Park Skate Park — to remove and replace the existing skate park and install state-of- the-art street skate plaza elements. General/Community Services (42%) 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 - $16,480,467 • Library contribution - $1,384,016 • Enhanced Custodial Services - $93,780 The ending fund balance within the Measure S Fund is projected to be $24,605,093, which will carry -forward to the ensuing fiscal year. Over the forecasted five-year period, Measure S is projected to have adequate resources to fund public safety, asset management, capital projects and general services. OTHER GENERAL FUNDS Fund 006— Fire Facility Acquisition Fund: This fund was established in Fiscal Year 2021-22 to accumulate resources to acquire and/or construct property for a future Fire Station. The ending fund balance is projected to be $5,031,293 for Fiscal Year 2025-26. 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 to rebound from the global pandemic. A total of $14,080,000 was transferred into this fund from available General Fund balance. The Council approved six funding categories, including: (1) Business Support ($3,080,000); (2) Non -Profit Support ($1,000,000); (3) Homeless Services ($1,000,000); (4) Housing Assistance ($5,500,000); (5) Behavioral Health Services ($1,500,000) and (6) Higher Education/Workforce Development ($1,000,000), leaving $1,000,000 subject to further Council appropriation. 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. 18 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Fund 100 - Gas Tax: Gas Tax revenue is projected to be $3,143,671, which reflects an increase of 0.4% as volume of gasoline sales is projected to remain steady. 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 $3,037,266, which is an increase of 4.4%. 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 2025-26 ending balance of $4,763,355. FY2025-26 appropriations of $1,927,477 is to partially fund the Overland Drive Widening capital project. 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 2025-26 expenditures of $114,150 is programmed to install storm drain inlet filters throughout the City. 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. No activity is anticipated in this fund for 2025-26, and the ending fund balance totals $983,842. Fund 120 — Development Impact Fees (DIF): DIF revenue is projected to be $8,073,996, which reflects an increase of 194.6% due to the higher level of activity in the prior year occurring in the Altair, Elderberry Park and Sommer's Bend developments. DIF revenue varies from year-to-year as it is based on anticipated development projects. DIF Revenues are transferred to the CIP to fund capital projects. Fiscal Year 2025-26 ending fund balance is projected to be $20,237,550. 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 $215,436, which will be spent on various technology equipment used to support the broadcast of City Council meetings and events. Fiscal Year 2025-26 ending fund balance is projected to be $1,261,637. Fund 140 — Community Development Block Grant (CDBG): CDBG grant revenues are received from the U.S. Department of Housing and Urban Development (HUD). Fiscal Year 2025-26 revenue is projected to be $612,781 and will support operations, community grants and capital projects. 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. There is no activity programmed for Fiscal Year 2025-26, and the ending fund balance is projected to be $126,157. Annual Operating Budget 1 19 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE 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 2025-26 revenue is projected to be $166,694. The majority of these funds are programmed for capital projects, including the Citywide Bike Lane and Trail Program, and to support the Clean Cities Coalition. 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 2025-26 revenue is projected to be $283,502 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 2025-26 of $488,091 includes the State Department of Finance allocation of $250,000 designated for the administration of the wind down of redevelopment obligations, plus $238,091 in investment interest. Expenditures reflect the ongoing administration of the City's Affordable Housing program. Fund 170 — Measure A: Measure A revenue is projected to be $4,242,301which reflects a 7.1% decrease over the prior year, due to a slower economy. This revenue is restricted for use on local streets and roads and is programmed to support street and road maintenance. Fiscal Year 2025-26 ending fund balance is projected to be $976,020. 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. Fund 300 — Insurance: Projected expenses total $3,800,317, which covers the cost of administering the City's liability and property insurance programs. The projected fund balance is $2,077,725 exceeds the desired reserve level of $1.5 million, which is three times the City's self -insured retention of $500,000 per incident. Fund 305 — Workers' Compensation: Projected expenses total $657,169, which covers the cost of administering the City's self -insured Workers' Compensation program. The projected fund balance is $1,478,521 and nearly meets the desired balance of $1.5 million, which represents three times the City's self -insured retention of $500,000 per incident. Fund 310 — Vehicles and Equipment: Projected expenses total $799,527 to replace several fleet vehicles and heavy equipment that have reached the end of their useful lives. The projected fund balance is $5,575,061. Replacements planned for 2025-26 include a Boom Truck, Construction Dump Truck and a Ford F-150 Lightning. Additionally, depreciation expense has been budgeted this year, adding $429,527 in expenditures for this Fund. Fund 320 — Information Technology: Projected expenses total $7,227,781, which provides for the management of the City's computers, audio-visual equipment, cyber security, and telephone systems. The projected fund balance is $850,797. 20 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Fund 325 — Technology Replacement: Projected expenses total $516,158 to replace the City's phone system, network switch, audio equipment at the Community Recreation Center Amphitheater and to fund the annual computer replacement program. The projected fund balance is $4,030,642. Fund 330 — Support Services: Projected expenses total $387,827, which provides for the management of the City's central reception, printing and mail activities. The projected fund balance is $22,976. Fund 335 — Support Services Replacement: Projected expenses total $72,200 to replace the Central Services copy machines and includes $42,200 in depreciation expenses. The projected fund balance is $383,895. Fund 340 — Facilities: Projected expenses total $1,645,947, which provide for the operations and maintenance of the City's buildings and parking structure. The projected fund balance is $92,364. Fund 350 — Facility Replacement: Projected expenses total $1,087,338 for Capital Outlay to support the City Facilities Rehabilitation capital project and includes $87,338 in depreciation expenses. The projected fund balance is $3,548,715. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA) Fund 380 — SARDA: Projected expenses total $7,090,641 primarily to pay debt service expenditures on the outstanding 2017A and 2017B Redevelopment Agency Tax Allocation Bonds, plus the addition of $1,179,997 budgeted for expected depreciation expense, not included in the prior year. 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). Combined revenue for TCSD totals $36,143,057, which reflects an increase of 1.8%over the prior year. The majority of the increase is from TCSD Operations and the Temecula Public Library. Combined expenditures for TCSD total $36,770,101 and reflect an increase of 1.6% due primarily to the addition of one new Signal Technician I position to support Service Level B (Street Lights), and higher waste hauling costs reflected in the Service Level D (Refuse/Recycling) Fund. Ending fund balance for TCSD is projected to be $4,849,853 for Fiscal Year 2025-26. Annual Operating Budget 1 21 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE TCSD Operations, excluding the Service Levels and Library Funds, is projected over a five-year period, as summarized below. 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Actuals Revised Proposed Projection Projection Projection Projection Measure C Revenue 1,908,085 1,926,088 1,935,718 1,955,076 1,974,626 1,994,373 2,014,316 Measure S Revenue 13,254,402 15,864,726 16,480,467 17,388,215 18,151,038 18,945,152 19,771,855 Program Revenue 2,779,695 2,836,576 2,860,431 2,889,036 2,917,926 2,947,105 2,976,576 Total Revenue 17,942,182 20,627,390 21,276,617 22,232,326 23,043,590 23,886,630 24,762,748 Operations Expenditures 16,459,137 19,166,127 19,303,385 20,164,533 20,914,238 21,693,679 22,504,086 Maintenance Expenditures 1,775,748 1,950,588 2,008,203 2,067,793 2,129,353 2,192,951 2,258,662 Total Expenditures 18,234,885 21,116,715 21,311,588 22,232,326 23,043,591 23,886,630 24,762,748 Beginning Balance 916,999 624,296 134,971 100,000 100,000 100,000 100,000 Ending Balance 624,296 134,971 100,000 100,000 100,000 100,000 100,00 Revenue from Measure S 74% 77% 77% 78% 79% 79% 80% The Five -Year Forecast shows the various revenue sources and projected operating expenditures, which are increasing between 2.0 — 4.3% per year. The contribution from Measure S increases from 74% in 2023-24 to 80% by 2029-30. A long-term fiscal strategic plan is recommended to address the increased reliance on Measure S to balance this Fund into the future. 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. Project Type Number of Projects Total Project Cost Circulation 24 632,429,570 Housing 4 20,401,000 Infrastructure 49 117,740,242 Parks/ Re c 18 59,908,080 CFD-Funded 2 63,591,689 The CIP includes a total of $894,070,582 in identified Total CIP 97 894,070,582 capital projects, with a total of $624,379,144 in project funding, representing 70% of all Project Costs. There is $269,691,438 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 be secured before the project construction can commence. Capital projects are categorized into five Project Types, as noted in the adjacent table. 22 1 Annual Operating Budget TRANSMITTAL MESSAGE 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 Fiscal Years 2026-30 CIP program reflects 61% from outside funding sources, with the remaining 39% provided by various City funds, including Measure S, Measure A, Development Impact Fee Funds, General Fund, Capital Financing, and several other sources. City of Temecula Fiscal Year 2025-26 Annual Operating Budget Capital Protect Funding Sources TUMF , 54,161,598, 9% City Funds, State/Local Grants, 244,469,320, 79,448,743, 13% 39% Successor Agency, �__ 750,000,0% Reimm 6ursemes, 40,952,252, 6% Federal Grants, 96,030,119, 15% Development Community Impact Fees, Facility Districts, 53,591,561, 9% 54,975,557 , 9 % Only one new project has been added to the CIP, the Local Roadway Safety Plan Update ($155,000) which is designed to bring the Plan in line with federal safety requirements. As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. The amounts identified in the table below are incorporated into the Proposed Operating Budget and the Five -Year Financial Projections. Summary of Operating & Maintenance Impacts Maintenance and Operations of PW17-01/711 - CITY SECURITY CAMERA SYSTEM Security Camera System 300,000 300,000 300,000 300,000 300,000 FN19-01/724 - CITYWIDE FINANCIAL SYSTEM UPGRADE Annual Software Maintenance 86,000 86,000 86,000 86,000 86,000 ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT Electricity Savings (695,286) (709,475) (723,665) (738,138) (752,901) PW21-09/683 - ELECTRIC VEHICLES CHARGING STATION Electric Charging Vehicles Fees (3,100) (3,100) (3,100) (3,100) (3,100) PW17-19/690 -1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING Required by Caltrans 60,805 62,046 63,289 65,188 67,144 PW17-21/692 - MARGARITA RECREATION CENTER Staffing for MRC (4 positions) 526,609 548,551 570,493 591,600 614,370 Project Staffing for MRC (45 positions - 13.07 FTEs) 705,946 735,361 764,775 795,366 825,978 Additional Utility Costs 71,371 72,828 74,285 77,034 79,999 Janitorial/Security 129,251 131,888 134,526 139,504 144,873 1,433,177 1,488, 628 1,544, 079 1,603, 504 1,665,220 IT20-01/780 - OLD TOWN SECURITY CAMERA & Maintenance fee for Old Town SOUND SYSTEM Sound System 75,000 75,000 75,000 75,000 75,000 PWPE07-03/PW23-18- LONG CANYON CREEK PARK RESTROOMS Janitorial Services 29,866 30,475 31,085 31,706 32,340 PWPE-07/155 - PARK RESTROOMS RENOVATIONS, EXPANSION AND ADA IMPROVEMENTS Janitorial Services 27,591 28,154 28,717 29,292 29,878 Total Incremental Operating & Maintenance Impacts 1,343,919 1,388,203 1,432,490 1,481,158 1,531,921 2025-26 AUTHORIZED STAFFING Total authorized Full Time Equivalent (FTE) positions total 202.2 authorized positions, including five Council Members. The increase reflects 1 new position (Signal Technician 1) compared to the prior year. Annual Operating Budget 1 23 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Public Safety personnel is provided through contracts with Riverside County and CalFire. A total of 117 sworn Sheriff's Deputies and 18 Community Service Officers are included in the Sheriff's budget, and a total of 79 personnel are reflected in the Fire Department budget for Fiscal Year 2025-26. City of Temecula History of Authorized Positions 2so.00 200.00 iso.00 10100 50.00 a-1 N 'n C ✓] �i 1, 0 0 9 0 0 0 C�1 O�1 O d C G O O tl 210.75 n 00 Qf O •i 0 0 0 o 0 a n v � - LL LL 4 to 'D N N H N N1 C 1f1 � n W O o C O N G C3 202.20 N f�V N N N N H O C C O C C 6 In addition to the Authorized Positions, the City employs three Limited -Term -Assignment positions related to the implementation of a new Human Resources/Payroll software system. A significant number of part-time, non- benefitted Project employees are also employed to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2025-26, an estimated 90 full-time equivalents will be hired as seasonal and part-time support. CONCLUSI In conclusion, the City of Temecula is in a solid fiscal position with the General Fund balanced and all reserves fully funded not only in Fiscal Year 2025-26 but throughout the ensuing five-year period. The Capital Improvement Program is robust, with 70% of all Project Costs funded, 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; Ward Komers, Assistant Director of Finance; Paula Majors, Finance Manager; and Catlin Dorset, Budget Manager for their long hours and dedication to the City and this budget process. Sincerely, 0,6 — ol,_ AarAdams City Manager 24 1 Annual Operating Budget A CITV OF TEMECULA, CALIFORNIA PROPOSED ANNUAL OPERATING BUDGET FISCAL YEAR 202S-2026 1 7Z 1,11" . N. 2M `� a R• Trm ANNUAL OPERATING BUDGET Fiscal Year 2025-26 City Council Brenden Kalfus, Mayor Jessica Alexander, Mayor Pro-Tem Zak Schwank, Council Member James Stewart, Council Member Matt Rahn, Council Member City Management Aaron Adams, City Manager Kevin Hawkins, Assistant City Manager Luke Watson, Deputy City Manager Jennifer Hennessy, Finance Director City of Temecula 41000 Main Street Temecula, California 92590 (951) 694-6430 TemeculaCA.gov A coo�(e^o The Heart of Southern California Wine Country Temecula Mayor Brenden Kalfus was first elected to serve on the City Council in 2022. Mayor Kalfus is notably the first Council Member to have been raised in Temecula since birth. He is now raising his five children alongside his wife, whom he met while attending Temecula Valley High School. "It is an honor and a privilege to be the Mayor of the City I grew up in," Mayor Kalfus states. "Having lived in Temecula for over 33 years, I've seen the growth and change Temecula has gone through. I understand what makes our City special, and I also understand the challenges we face as a community. This year, as your Mayor of Temecula, I will continue to keep public safety, our City's infrastructure, and community engagement my top priorities." With a long-term perspective on the City of Temecula and experiences gained from other cities during his college and his professional career, he places a strong emphasis on investing in public safety and maintaining a safe community. He advocates for beautifully maintained parks, streets, and infrastructure, all of which contribute to a high quality of life where families and local businesses can thrive. erenden Kalfus Mayor City of Temecula I 1 TABLE OF CONTENTS COVER TABLE OF CONTENTS INTRODUCTION City of Temecula Fiscal Year 2025-26 Annual Operating Budget 0 3 9 TransmittalMessage---------------------------------------------------------------------------------------------------------------------- 9 Directory------------------------------------------------------------------------------------------------------------------------------------ 26 CityOrganizational Chart --------------------------------------------------------------------------------------------------------------- 27 Mission and Value Statements -------------------------------------------------------------------------------------------------------- 28 CitywideLong -Term Goals-------------------------------------------------------------------------------------------------------------29 Government Finance Officers Association (GFOA) Award ---------------------------------------------------------------------- 31 California Society of Municipal Finance Officers (CSMFO) Award ------------------------------------------------------------ 32 City of Temecula at a Glance----------------------------------------------------------------------------------------------------------33 GUIDE TO THE BUDGET DOCUMENT--------------------------------------------------------------------------------------------------- 35 Understanding the Budget Document---------------------------------------------------------------------------------------------- 35 BudgetaryFund Structure -------------------------------------------------------------------------------------------------------------- 37 Descriptionof Funds --------------------------------------------------------------------------------------------------------------------- 39 Fundsand Departments----------------------------------------------------------------------------------------------------------------44 FundingSources by Department ------------------------------------------------------------------------------------------------------ 46 BudgetProcess ---------------------------------------------------------------------------------------------------------------------------- 46 Budget Engagement Sessions---------------------------------------------------------------------------------------------------------50 BudgetCalendar -------------------------------------------------------------------------------------------------------------------------- 51 FIVE-YEAR FORECAST ----------------------------------------------------------------------------------------------------------------------- 53 Long Range Financial Projection------------------------------------------------------------------------------------------------------53 Five -Year Financial Projection — General Fund------------------------------------------------------------------------------------ 55 Five -Year Revenue Projection — General Fund------------------------------------------------------------------------------------ 57 Five -Year Expenditure Projection — General Fund-------------------------------------------------------------------------------- 59 Five -Year Financial Projection — Measure S Fund--------------------------------------------------------------------------------- 63 Five -Year Financial Projection —Temecula Community Services District Fund -------------------------------------------- 67 FINANCIAL SUMMARIES------------------------------------------------------------------------------------------------------------------- 69 FundBalance Summary----------------------------------------------------------------------------------------------------------------- 69 Major Revenue Sources ----------------------------------------------------------------------------------------------------------------- 71 GeneralFund------------------------------------------------------------------------------------------------------------------------------ 76 General Fund — Revenue by Source------------------------------------------------------------------------------------------ 79 GeneralFund — Revenue Detail ------------------------------------------------------------------------------------------------ 80 General Fund — Fund Summaries ---------------------------------------------------------------------------------------------- 82 Annual Operating Budget 1 3 Special Revenue and Debt Service Funds ------------------------------------------------ Special Revenue and Debt Service Funds — Revenue Detail ----------------- Special Revenue and Debt Service Funds — Fund Summaries--------------- TemeculaCommunity Services District (TCSD)----------------------------------------- TCSD — Revenue by Source ---------------------------------------------------------- TCSD — Revenue Detail ---------------------------------------------------------------- TCSD — Fund Summaries -------------------------------------------------------------- Successor Agency to the Temecula Redevelopment Agency (SARDA)----------- SARDA — Fund Summary -------------------------------------------------------------- Internal Service Funds ------------------------------------------------------------------------ Internal Service Funds — Revenue Detail ----------------------------------------- Internal Service Funds — Fund Summaries --------------------------------------- Capital Improvement Program Fund ------------------------------------------------------ CIP— Fund Summary------------------------------------------------------------------ City of Temecula Fiscal Year 2025-26 Annual Operating Budget ----------------------------------------- 87 -----------------------------------------88 -----------------------------------------90 ---------------------------------------104 ---------------------------------------105 ---------------------------------------106 ---------------------------------------109 ---------------------------------------118 ---------------------------------------119 ---------------------------------------120 121 123 132 133 PERFORMANCE MEASURES ------------------------------------------------------------------------------------------------------------- 135 DEPARTMENTAL INFORMATION------------------------------------------------------------------------------------------------------151 City Council --------------------------------------- City Manager ------------------------------------ CityClerk ------------------------------------------ City Attorney ------------------------------------- Finance Department --------------------------- Human Resources and Risk Management Community Development Department --- Public Works Department -------------------- Temecula Sheriff's Office --------------------- Fire Department -------------------------------- Non-Departmental ----------------------------- Temecula Community Services District --- Internal Services Funds ------------------------ CAPITAL IMPROVEMENT PROGRAM CIP — Capital Improvement Program Summary------- CIP — Description of Revenue Sources ------------------- CIP — Capital Projects Revenue Summary-------------- CIP — Major Revenue Sources ----------------------------- CIP — Capital Project Expenditure Summary----------- CIP — Expenditure Summary by Project Type---------- CIP — Capital Projects Summary — by Funding Source ----193 ---- 203 ---- 215 ---- 225 ---- 233 ---- 237 ---- 251 265 265 268 271 274 275 279 280 4 1 Annual Operating Budget CIP — Capital Projects Summary — by Project ------------------------------------- CIP — Summary of Operating & Maintenance Costs ---------------------------- CIP — Future Years Project ------------------------------------------------------------- BUDGET AND FISCAL POLICIES ---------------------------------------------------------- 1. Financial Strategic Plan Purpose and Organization ---------------------------------- A. Annual Operating Budget (AOB)--------------------------------------------------- B. Balanced Budget ----------------------------------------------------------------------- C. Five -Year Financial Forecast -------------------------------------------------------- D. Capital Improvement Program (CIP) ---------------------------------------------- 11. Financial Reporting -------------------------------------------------------------------------- A. Annual Reporting ---------------------------------------------------------------------- B. Interim Reporting --------------------------------------------------------------------- C. Budget Amendments ----------------------------------------------------------------- D. Extended Annual Reporting --------------------------------------------------------- 111. Fund Balance and Reserves ---------------------------------------------------------------- A. Fund Balance Policy ------------------------------------------------------------------- B. Reserve for Economic Uncertainty ------------------------------------------------ C. Secondary Reserve for Contingencies -------------------------------------------- D. Future Capital Project Designations ---------------------------------------------- E. Other Designations and Reserves ------------------------------------------------- F. Fund Balance Components ---------------------------------------------------------- G . Hierarchy of Spending Fund Balance --------------------------------------------- H. Unassigned Fund Balance —General Fund -------------------------------------- IV. Transactions and Use Tax Funding (Measure S) -------------------------------------- A. Measure S Revenue ------------------------------------------------------------------- B. Appropriation Priorities of Measure S Revenue ------------------------------- V. Contingency Planning ----------------------------------------------------------------------- A. One -Time Events ---------------------------------------------------------------------- B. Ongoing Fiscal Constraints ---------------------------------------------------------- V1. Staffing Policy --------------------------------------------------------------------------------- A. Regular Staffing ------------------------------------------------------------------------ B. Project Staffing ------------------------------------------------------------------------- C. Temporary Staffing -------------------------------------------------------------------- D. Work Hours ----------------------------------------------------------------------------- E. Overtime Management -------------------------------------------------------------- F. Independent Contractors ------------------------------------------------------------ G. Productivity----------------------------------------------------------------------------- City of Temecula Fiscal Year 2025-26 Annual Operating Budget 293 305 306 307 307 307 308 308 309 311 311 312 312 312 312 312 312 313 313 313 313 314 314 315 315 315 316 317 317 317 317 318 318 318 318 319 319 Annual Operating Budget 1 5 City of Temecula Fiscal Year 2025-26 Annual Operating Budget H. Contracting for Services — Private Sector ------------------------------------------------------ 1. Contracting for Services — Government Service Contracts -------------------------------- J. Contracting for Services — Regional Approach ----------------------------------------------- K. Comprehensive Annual Leave Payout ---------------------------------------------------------- VI 1. Asset Management and Replacement Policy ----------------------------------------------------- A. Replacement Funds --------------------------------------------------------------------------------- V I I I. Capital Financing and Debt Management --------------------------------------------------------- A. Capital Financing ------------------------------------------------------------------------------------ B. Debt Management ---------------------------------------------------------------------------------- C. Debt Capacity ----------------------------------------------------------------------------------------- D. Independent Disclosure Counsel ---------------------------------------------------------------- E. Land -Based Financings ----------------------------------------------------------------------------- F. Conduit Financings ---------------------------------------------------------------------------------- G. Refinancings ------------------------------------------------------------------------------------------ H. Types of Debt That May be Issued -------------------------------------------------------------- I. Policy Goals Related to Planning Goals and Objectives ------------------------------------ J. Creation of Services Community Facilities Districts ----------------------------------------- I X. I n to rf u n d Transfers and Loans Policy ----------------------------------------------------------------- A. Establishment of Various Funds ----------------------------------------------------------------- B. Transfer Between Funds --------------------------------------------------------------------------- C. I me rfu n d Loans -------------------------------------------------------------------------------------- X. Appropriations Limitation -------------------------------------------------------------------------------- A. Adopting a Resolution ------------------------------------------------------------------------------ B. Supporting Documentation Available for Review ------------------------------------------- C. Calculating Appropriations ------------------------------------------------------------------------ D. Review of User Fees and Charges --------------------------------------------------------------- E. Support of Legislation or Initiatives ------------------------------------------------------------- F. Voter Approval to Amend Appropriation Limit ---------------------------------------------- XI. Pension Rate Stabilization Policy ----------------------------------------------------------------------- A. Establishment of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust--- B. Funding of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust----------- XII. Signature Delegation Policy --------------------------------------------------------------------------- A. Delegation of City Manager Signature Authority -------------------------------------------- B. Delegation of City Manager Settlement Authority------------------------------------------ X I I I . Emergency Appropriation Policy --------------------------------------------------------------------- XIV. Debt/Liability Paydown Strategy Policy ------------------------------------------------------------ AP P E N D I C ES----------------------------------------------------------------------------------------------------------- 320 321 322 322 322 322 323 323 324 326 ------- 326 ------- 326 ------- 328 ------- 329 ------- 329 ------- 330 ------- 330 ------- 334 ------- 334 ------- 334 ------- 334 ------- 334 ------- 334 ------- 334 ------- 334 ------- 335 ------- 335 ------- 335 ------- 335 ------- 335 ------- 335 ------- 336 ------- 336 ------- 337 ------- 337 ------- 337 339 6 1 Annual Operating Budget AppendixA — Personnel ------------------------------------------------------------------------- Summary of Changes in Authorized Positions, Personnel and Benefit Cost Schedule of Authorized Positions ----------------------------------------------------- Schedule of Changes in Allocated Positions ---------------------------------------- Summary of Budgeted Positions ------------------------------------------------------ Appendix B —Supplemental Information --------------------------------------------------- LocatorMap -------------------------------------------------------------------------------- Community Profile and Demographics ---------------------------------------------- Consolidated Capital Outlay ------------------------------------------------------------ GANN Appropriations Limit ------------------------------------------------------------- Assessed Value of Taxable Property -------------------------------------------------- Summary of Federal Grant Expenditures -------------------------------------------- LegalDebt Margin ------------------------------------------------------------------------ Fiscal Year 2024-25 Debt Obligations ------------------------------------------------ Summary of Property Tax Collections ------------------------------------------------ Principal Secured Property Owners -------------------------------------------------- Computation of Direct and Overlapping Bonded Debt -------------------------- Largest Employers by Number of Employees -------------------------------------- Comparative City Information --------------------------------------------------------- Summary of Interfund Transfers ------------------------------------------------------ Summary of Affordable Housing Investment -------------------------------------- Summary of City Grant Recipients ---------------------------------------------------- Community Reinvestment Program Funding Matrix ----------------------------- Additional Resources --------------------------------------------------------------------- Appendix C — Glossary/Index ------------------------------------------------------------------ Glossary of Acronyms -------------------------------------------------------------------- Glossaryof Terms ------------------------------------------------------------------------- Index----------------------------------------------------------------------------------------- City of Temecula Fiscal Year 2025-26 Annual Operating Budget -339 -339 -341 -347 -354 -355 -355 -356 -359 -361 -362 -363 -364 -365 -366 -367 -368 -370 -371 -372 -373 -375 -380 -381 -383 -383 -386 -393 Annual Operating Budget 1 7 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 8 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE May 22, 2025 Honorable Mayor and Members of the City Council: I am pleased to submit the Proposed Annual Operating Budget for the Fiscal Year 2025-26. 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 2025-26 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'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 112,220 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. Law Enforcement and Fire Protection services are provided through contracts with the County of Riverside. Known as Southern California's Wine Country, the City of Temecula is a nationally and internationally known tourist destination welcoming over 3 million visitors a year. Temecula is also an innovative, dynamic economic powerhouse and job center for the region, all the while retaining its small-town charm and character that residents cherish. Offering the finest quality of life, Temecula is listed among the safest cities in the State and Nation per FBI statistics. With a diverse population, citizens enjoy picturesque neighborhoods, a vast array of beautifully manicured parks and trails, multi -cultural dining options, retail stores that include the region's premier shopping destination Promenade Temecula, the highest rated School District in Riverside County for its outstanding academic scores, higher education opportunities including Mount San Jacinto College's Temecula Campus and Cal State San Marcos at Temecula. Annual Operating Budget 1 9 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE As a visitor destination, Temecula also offers a vibrant Old Town with boutique shops, outdoor markets, and a distinct foodie district, Pechanga Resort Casino, Southern California's Wine Country speckled each morning with hot air balloons hovering over grapevines and equestrian trails, - championship golf courses, Vail Ranch Historic Headquarters _ - -- --: comprised of turn -of -the -century old west structures restored into 4 specialty restaurants and retail, and City of Temecula signature _ ------ events, parades, museums and a theater. Temecula's scenic landscape of rolling hills, vineyards and wineries are swept clean r each afternoon with fresh ocean breezes that funnel through the Santa Margarita gap of the coastal mountains providing an ambience that magnifies the beauty of the City and Temecula Valley. =£ ECONOMIC INDICATORS The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections. #,, 19 (D ift ;;d.. Population Median Age Households Average Median # of Jobs Unemployment 112,220 37.5 years 36,914 Income Home Price 54,400 Rate 4.6% $145,129 $771,000 (Mar'25) (Mar'25) (Apr'25) • Estimated Population: up 1.2% from 2024 (source: State Department of Finance) • Median Age: down from 37.7 in 2024 (source: Pop -Facts Report, 2-13-25) • Number of Households: down 0.7% from 2024 (source: Pop -Facts Report, 2-13-25) • Average Household Income: up 2.3% from 2024 (source: Pop -Facts Report, 2-13-25)137195 • April Median Home Price: up 6.2% from 2024 (Source: Southwest Riverside County Association of Realtors) • Number of Jobs: up 0.2% from April 2024 (source: FDD) • March Unemployment Rate: up from 4.1% in April 2024 (Riverside County: 5.1%, CA: 5.3%, Nation: 4.2% (source: FDD & BLS) Temecula has experienced slight increases in the majority of the above economic indicators. Population has increased 1.2% after two consecutive years of declines. Housing prices continue to climb due to the low inventory, with a 6.2% increase in the median home price. Temecula's average household income has increased by 2.3%, while the number of jobs has remained relatively flat over the prior year. Unemployment has increased slightly, but remains lower than both Riverside County and the State. 10 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE LOCAL ECONOMY AND LEGISLATIVE IMPACTS Local Economy As the economic indicators noted above have improved over 2024, the impact to the local economy is evident in the retail activity and sales tax trends. Despite a flattening of Sales Tax revenue in the current year, it is projected to grow at a modest 2.5% next fiscal year, as both national retailers and local entrepreneurs continue to invest in Temecula by opening businesses, undergoing expansion projects and starting new construction. Currently, there are seventeen new businesses slated to open soon, including a hotel, multiple retailers, restaurants and breweries. In addition, several auto dealers are undergoing expansions within the Temecula Auto Mall. , , r �OApN�USE QQ4 L ! F�Ca ESTII �jw�� 2lY[tl jvr f!y! NG 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 residents generated $37,209 in sales tax per capita in 2024, which far outpaced neighboring cities and statewide averages. Per Capita Sales Temecula $14,000 $12,000 Riverside County $10,000 Southern California $8,000 California $6,000 $4,000 $2,000 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 21 22 22 22 22 23 23 23 23 24 24 24 24 Source: HdL Companies 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: 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. Annual Operating Budget 1 11 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE 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: Senate Bill 937 Impact Fee Deferral - SB 937 was signed into law on September 19, 2024 and became effective January 1, 2025. This new law prohibits the local agencies from collecting the fees or charges from a Designated Residential Development Project for the construction of public improvements or facilities until the first occupancy certificate or first temporary certificate of occupancy is issued. The local agency may collect utility service fees at the time of application for service. It may charge the fees prior to the certificate of occupancy if construction does not begin within five years of the date the building permit is issued. The local agency may require the payment of these fees or charges at an earlier time if the conditions specified in the code are met. Assembly Bill 1868 Property Taxation on Affordable Housing — AB 1868 was enacted in 2024 and became effective on January 1, 2025. The bill primarily deals with property taxation and affordable housing, specifically focusing on how county assessors value property for tax purposes when its subject to restrictions for affordable housing. It establishes a rebuttable presumption that the value of property subject to certain affordable housing contracts is no more than the sum of the first mortgage and down payment. GOALS AND OBJECTIVES The City Council recently adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The Temecula 2040 Plan is a living document that reflects C the vision and long-term goals of the City. As Temecula continues to grow and mature,,'rk the Temecula 2040 Plan will be a crucial part of not only maintaining the City's quality of life, but to take a proactive approach and identify specific community needs, goals, 0 Lo and possible improvements. The City of Temecula utilizes the QLMP to formulate and � ���MP �, budget Citywide projects. In addition, the QLMP is used to guide planning, investment -I&TE 4 decisions, to provide vision and continuity for the next phase of the City's journey, and for continuous process improvement in partnership with Temecula's residents. To incorporate the QLMP into the City's budget process, the QLMP includes specific goals based on the Core Values of the QLMP. 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. 12 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE The QLMP outlines 7 Core Values: ® Healthy & Livable City IEEconomic Prosperity C . Safe & Prepared Community BUDGET OVERVIEW aSustainable & Resilient City Transportation Mobility & Connectivity ©Accountable & Responsive City rm Government 0 Equity The Fiscal Year 2025-26 Proposed Budget reflects a structurally balanced, healthy fiscal outlook across all major funds for the City of Temecula. General Fund, Special Revenue Funds and TCSD Fund revenues are growing, albeit at a modest pace, and expenditures include all contractually obligated increases offset by various budget reductions necessary to partially absorb rising costs in Public Safety departments. Major changes from the prior Operating Budget are summarized below. Revenue & Expenditures & Change in Fund Category Transfers In Transfers Out Fund Balance Variance Analysis Change from Change from from Prior Prior Year Prior Year Year Revenue growth attributable to Sales Tax, Measure S Tax and Interest GENERAL FUNDS 9,119,015 (22,028,106) (4,082,295) Earnings. Expenditure reduction due to reduced Capital Project funding, offset by 5.2% increase in Operating Expenditures. Revenue growth attributable to Development Impact Fees. Expenditure reduction due to reduced Capital Project funding from Development SPECIAL REVENUE FUNDS 3,437,195 (13,157,830) 1,745,437 Impact Fees, Measure A, Affordable Housing and Road Maintenance Funds. TEMECULA COMMUNITY SERVICES DISTRICT Revenue growth attributable to the TCSD Operations and Library Funds. (TCSD) 636,008 573,888 (627,045) Expenditure growth due to higher salaries, benefits and internal service fund allocations. Revenue decline due to reduced Redevelopment Property Tax Trust SUCCESSOR AGENCY TO THE REDEVELOPMENT (595660) 429 ,,997 Fund distributions due to the wind down of the former Redevelopment 55,382 AGENCY Agency. Expenditure increase due partly to Depreciation which had not been budgeted in the prior year. Revenue decline due to one-time transfers in the prior year from the Information Technology Fund to the Technology Replacement Fund, and INTERNAL SERVICE FUNDS (4,210,438) (3,351,405) 212,877 a reduced Transfer in from the Measure S Fund to the Facilities Replacement Fund. Expenditure decline due to reduced Capital Project !ALL BUDGETED CITY FUNDS 8,386,120 (37,533,456) funding and one-time transfers. (2,695,645) Assumptions, combined with known contractual obligations are used in forecasting revenue sources, expenditure trends, as well as the long-term financial forecasts. Annual Operating Budget 1 13 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Current year revenue assumptions are based on multiple factors, including input from the City's Sales Tax and Property Tax consultants, input from the State of California, local economic trends and development activity. Assumptions beyond the current year include general inflationary growth projections plus any known development projects, new hotels, expanding businesses and any other specific data that may impact revenue growth. The table below summarizes the growth assumptions for the General Fund Five -Year Revenue Forecast: Summary of Revenue Assumptions FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 Property Tax 4.4% 4.0% 4.0% 4.0% 4.0% Sales and Use Tax 2.5% 3.0% 3.0% 3.5% 3.5% Less: Sales Tax Sharing Agreement 3.0% 3.0% 3.0% 3.0% 3.0% Franchise Fees -7.4% 1.0% 1.0% 1.0% 1.0% Transient Occupancy Tax 1.6% 3.0% 3.0% 5.0% -1.9% Special Tax (Measure C) 9.0% 0.5% 0.5% 0.5% 0.5% Licenses, Permits and Service Charges 13.0% 2.0% 2.0% 2.0% 2.0% Fines and Forfeitures 13.7% 1.0% 1.0% 1.0% 1.0% Use of Money and Property 29.2% 1.0% 1.0% 1.0% 1.0% Intergovernmental Revenues 4.2% 4.0% 4.0% 4.0% 4.0% Reimbursements 5.1% 4.6% 4.9% 4.4% 3.9% Miscellaneous -17.9% 1.0% 1.0% 1.0% 1.0% Assumptions used in forecasting Operating expenditures include the following: ■ Contractual obligations: 0 Negotiated cost of living adjustment of 2.3% for City employees 0 Public Safety labor contracts (9.5% for Sheriff positions, 17.5% for Fire positions) 0 Reclassification of 23 full-time authorized positions 0 CalPERS Pension cost sharing of 3% for eligible employees ■ Council policies: 0 Continuation of the Debt/Liability Paydown Strategy ($8,267,833 in FY25-26 for additional discretionary payments towards the City's CAPERS unfunded pension liability) 0 Annual Replacement allocations for Fleet, Technology, Facilities, Support Services, Street Maintenance and Street Light assets. ■ Expected savings achieved from the Debt/Liability Paydown Strategy ($18.5 million over the ensuing five fiscal years) ■ Actuarially determined contributions to the City's pension and retiree health programs Estimated inflation for non -personnel related expenditures 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. 14 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Ending fund balance for Fiscal Year 2025-26 is to be $35,523,239, FY25-26 General Fund Balance projected 535,523,239 of which $26,680,709 is committed to fulfilling the Fund's policy -level reserves of 25% of Operating Expenditures. A total of $465,524 of fund Ava€fahle 30.WRaao balance is committed to cover the costs of a Sheriff's Deputy position F"undB ace We ian assreneal 7 S.D7fl WO ! 6nl mitteU funded by the Pechanga Tribe. Secondary Rese 15,0w,ow (5%) A total of $8,377,005 in fund balance is unassigned and available for one- a°'°°°° Reserve for Economic time appropriations. l Certainty General Fund Revenue Highlights General Fund revenue is projected to increase by 7.6% over the prior year with a total of $113,978,529. Tax revenues, excluding the transfer from Measure S Fund, are projected to increase by 3%. The transfer of Measure S increases significantly to fund contractual increases in Public Safety expenditures. The General Fund major revenue sources are summarized below: • Sales Tax ($47,340,358) is projected to increase by 2.5% over the prior fiscal year as taxable retail sales are projected to increase slightly, although there are still concerns about the overall trajectory of the economy. • Property Tax ($12,164,898) is projected to increase by 4.4%, due to a stable housing market. Property Tax revenue for Fiscal Year 2025-26 is based on assessed Fiscal Year 2025-26 General Fund Revenue-$113,978,529 Franchise Fees TOT Prop. Tax in Lieu of 4% 4% Measure C VLF � _ // 2% 10% Licenses/Permits 6% Property Tax 11% Measure 5 12% --Transfers In s% Sales Tax I Reimbursements 40% Other 4% 2% valuation from the year prior, which have shown steady growth, as inventory is still low and home prices continue to rise slightly. • Franchise Fees ($4,229,094) are projected to decrease by 7.4% due to lower natural gas rates and continuing declines in cable subscribers. • Transient Occupancy Tax ($4,500,000) is projected to increase by 1.6% over the prior year. Both occupancy rates and the average daily hotel rates have leveled off recently due to concerns over the economy. With the opening of a new hotel in Fiscal Year 2025-26, Transient Occupancy Tax is expected to grow. • Licenses, Permits & Service Charges ($6,623,241) are projected to increase by 13% due to the continuation of development activity within the City. • Intergovernmental Revenues ($11,713,171) are projected to increase by 4.2% due to the increases expected in Property Tax In Lieu of Vehicle License Fees which is driven by property value assessments within the City. Annual Operating Budget 1 15 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE • Operating Transfers In ($5,428,738) are projected to decrease by 35.5% due to a $3 million reduction in the transfer from the City's Pension Trust, in accordance with the City's Debt/Liability Paydown Strategy to fully fund the accrued pension liability by Fiscal Year 2028-29. • Operating Transfers In - Measure S ($13,548,319) will continue to fund 11 Sheriff Deputies, staffing for Fire Station No. 95, funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles, and enhanced park maintenance services. General Fund Expenditure Highlights The largest expenditure of the General Fund is Public Safety, making up 55% 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 Sheriff Department will continue to exceed the staffing goal of one officer per 1,000 residents and the Fire Department will continue to provide four firefighter personnel per engine at all five fire stations. General Fund expenditures total $106,722,837, which represents an 8% increase over the prior fiscal year. • Sheriff's Office ($48,474,402) is increasing by 11.1% over the prior year due to inflationary adjustments in the contract with Riverside County, including a new multi -year labor agreement which includes successive pay adjustments. The budget reflects 117 Sworn Deputies, which includes continued patrol coverage of 210 hours per day, and full staffing for the Metro and CORE Teams. The budget also includes the replacement of four motorcycles. • Fire Department ($13,923,013) is increasing by 25.6% due to inflationary adjustments in the contract with Riverside County combined with the reversal of a one-time CalPERS Retirement offset administered by the State in FY2024-25. The total Fire budget of $26.4 million is offset by the Structural Fire Tax Credit of $12.4 million. The department employs 79 positions and provides four firefighters per engine/truck staffing model. • Non -Safety Departments ($47,128,746) represents a 3.1% increase over the prior year, due primarily to the reclassification of several positions and the calculated 2.3% cost of living adjustment in accordance with the City's labor agreements. • Non -Departmental (-$2,803,324) includes the projected savings in the CAPERS unfunded liability offset by the Retiree Medical Contribution and Property Tax Administrative fees. 16 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Operating Transfers Out & One -Time Payments This category of expenditures reflects funds that are transferred to meet the Debt/Liability Paydown Strategy, to the Capital Improvement Program and the Fire Facility Acquisition Fund. • CaIPERS Unfunded Pension Liability ($8,267,833) to further reduce the City's annual pension costs by an estimated $3.5 million per year. • Capital Improvement Fund ($500,000) to support the General Plan Update project. 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 throughout the fiscal year, adjustments to revenue or expenditure budgets will be recommended 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 2025-26 Measure S revenue is projected to be $40,028,469. Measure S appropriations of $42,771,911 reflect the priorities established in Budget Policy IV — Transactions and Use Tax Funding. Public Safety (32%) The budget includes $13,754,539 of Measure S funding to support the contracts for the Sheriff and Fire Departments. Measure S provides for 11 Sheriff's Deputies, staffing for Fire Station No. 95, and funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles. Measure S - FY25-26 Appropriations $42,771,911 Asset Management/Investment (5%) 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 2025- 26, Measure S is contributing $1,250,000 to the Facilities Replacement Fund, and $1,000,000 to the Streets Maintenance Fund. Capital Improvement Program (21%) The budget includes an additional $8,809,109 appropriation in Fiscal Year 2025-26 to complement the current year budget of $34,283,385 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. Annual Operating Budget 1 17 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Major Projects funded by Measure S include: • Fire Station 73 Gym/Garage - to construct a gym, storage room and a second garage at the station to house the squad and additional vehicles. • Fire Station 84 Renovation — to completely renovate the existing station including the addition of a gym, upgraded electrical, windows, paint and renovated living quarters. • Ronald Reagan Sports Park Hockey Rink - to renovate the existing outdoor hockey rink by installing new flooring, dasher boards, scoreboard and a roof structure. • Ronald Reagan Sports Park Skate Park — to remove and replace the existing skate park and install state-of- the-art street skate plaza elements. General/Community Services (42%) 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 - $16,480,467 • Library contribution - $1,384,016 • Enhanced Custodial Services - $93,780 The ending fund balance within the Measure S Fund is projected to be $24,605,093, which will carry -forward to the ensuing fiscal year. Over the forecasted five-year period, Measure S is projected to have adequate resources to fund public safety, asset management, capital projects and general services. OTHER GENERAL FUNDS Fund 006— Fire Facility Acquisition Fund: This fund was established in Fiscal Year 2021-22 to accumulate resources to acquire and/or construct property for a future Fire Station. The ending fund balance is projected to be $5,031,293 for Fiscal Year 2025-26. 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 to rebound from the global pandemic. A total of $14,080,000 was transferred into this fund from available General Fund balance. The Council approved six funding categories, including: (1) Business Support ($3,080,000); (2) Non -Profit Support ($1,000,000); (3) Homeless Services ($1,000,000); (4) Housing Assistance ($5,500,000); (5) Behavioral Health Services ($1,500,000) and (6) Higher Education/Workforce Development ($1,000,000), leaving $1,000,000 subject to further Council appropriation. 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. 18 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Fund 100 - Gas Tax: Gas Tax revenue is projected to be $3,143,671, which reflects an increase of 0.4% as volume of gasoline sales is projected to remain steady. 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 $3,037,266, which is an increase of 4.4%. 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 2025-26 ending balance of $4,763,355. FY2025-26 appropriations of $1,927,477 is to partially fund the Overland Drive Widening capital project. 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 2025-26 expenditures of $114,150 is programmed to install storm drain inlet filters throughout the City. 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. No activity is anticipated in this fund for 2025-26, and the ending fund balance totals $983,842. Fund 120 — Development Impact Fees (DIF): DIF revenue is projected to be $8,073,996, which reflects an increase of 194.6% due to the higher level of activity in the prior year occurring in the Altair, Elderberry Park and Sommer's Bend developments. DIF revenue varies from year-to-year as it is based on anticipated development projects. DIF Revenues are transferred to the CIP to fund capital projects. Fiscal Year 2025-26 ending fund balance is projected to be $20,237,550. 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 $215,436, which will be spent on various technology equipment used to support the broadcast of City Council meetings and events. Fiscal Year 2025-26 ending fund balance is projected to be $1,261,637. Fund 140 — Community Development Block Grant (CDBG): CDBG grant revenues are received from the U.S. Department of Housing and Urban Development (HUD). Fiscal Year 2025-26 revenue is projected to be $612,781 and will support operations, community grants and capital projects. 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. There is no activity programmed for Fiscal Year 2025-26, and the ending fund balance is projected to be $126,157. Annual Operating Budget 1 19 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE 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 2025-26 revenue is projected to be $166,694. The majority of these funds are programmed for capital projects, including the Citywide Bike Lane and Trail Program, and to support the Clean Cities Coalition. 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 2025-26 revenue is projected to be $283,502 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 2025-26 of $488,091 includes the State Department of Finance allocation of $250,000 designated for the administration of the wind down of redevelopment obligations, plus $238,091 in investment interest. Expenditures reflect the ongoing administration of the City's Affordable Housing program. Fund 170 — Measure A: Measure A revenue is projected to be $4,242,301which reflects a 7.1% decrease over the prior year, due to a slower economy. This revenue is restricted for use on local streets and roads and is programmed to support street and road maintenance. Fiscal Year 2025-26 ending fund balance is projected to be $976,020. 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. Fund 300 — Insurance: Projected expenses total $3,800,317, which covers the cost of administering the City's liability and property insurance programs. The projected fund balance is $2,077,725 exceeds the desired reserve level of $1.5 million, which is three times the City's self -insured retention of $500,000 per incident. Fund 305 — Workers' Compensation: Projected expenses total $657,169, which covers the cost of administering the City's self -insured Workers' Compensation program. The projected fund balance is $1,478,521 and nearly meets the desired balance of $1.5 million, which represents three times the City's self -insured retention of $500,000 per incident. Fund 310 — Vehicles and Equipment: Projected expenses total $799,527 to replace several fleet vehicles and heavy equipment that have reached the end of their useful lives. The projected fund balance is $5,575,061. Replacements planned for 2025-26 include a Boom Truck, Construction Dump Truck and a Ford F-150 Lightning. Additionally, depreciation expense has been budgeted this year, adding $429,527 in expenditures for this Fund. Fund 320 — Information Technology: Projected expenses total $7,227,781, which provides for the management of the City's computers, audio-visual equipment, cyber security, and telephone systems. The projected fund balance is $850,797. 20 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Fund 325 — Technology Replacement: Projected expenses total $516,158 to replace the City's phone system, network switch, audio equipment at the Community Recreation Center Amphitheater and to fund the annual computer replacement program. The projected fund balance is $4,030,642. Fund 330 — Support Services: Projected expenses total $387,827, which provides for the management of the City's central reception, printing and mail activities. The projected fund balance is $22,976. Fund 335 — Support Services Replacement: Projected expenses total $72,200 to replace the Central Services copy machines and includes $42,200 in depreciation expenses. The projected fund balance is $383,895. Fund 340 — Facilities: Projected expenses total $1,645,947, which provide for the operations and maintenance of the City's buildings and parking structure. The projected fund balance is $92,364. Fund 350 — Facility Replacement: Projected expenses total $1,087,338 for Capital Outlay to support the City Facilities Rehabilitation capital project and includes $87,338 in depreciation expenses. The projected fund balance is $3,548,715. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA) Fund 380 — SARDA: Projected expenses total $7,090,641 primarily to pay debt service expenditures on the outstanding 2017A and 2017B Redevelopment Agency Tax Allocation Bonds, plus the addition of $1,179,997 budgeted for expected depreciation expense, not included in the prior year. 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). Combined revenue for TCSD totals $36,143,057, which reflects an increase of 1.8%over the prior year. The majority of the increase is from TCSD Operations and the Temecula Public Library. Combined expenditures for TCSD total $36,770,101 and reflect an increase of 1.6% due primarily to the addition of one new Signal Technician I position to support Service Level B (Street Lights), and higher waste hauling costs reflected in the Service Level D (Refuse/Recycling) Fund. Ending fund balance for TCSD is projected to be $4,849,853 for Fiscal Year 2025-26. Annual Operating Budget 1 21 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE TCSD Operations, excluding the Service Levels and Library Funds, is projected over a five-year period, as summarized below. 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Actuals Revised Proposed Projection Projection Projection Projection Measure C Revenue 1,908,085 1,926,088 1,935,718 1,955,076 1,974,626 1,994,373 2,014,316 Measure S Revenue 13,254,402 15,864,726 16,480,467 17,388,215 18,151,038 18,945,152 19,771,855 Program Revenue 2,779,695 2,836,576 2,860,431 2,889,036 2,917,926 2,947,105 2,976,576 Total Revenue 17,942,182 20,627,390 21,276,617 22,232,326 23,043,590 23,886,630 24,762,748 Operations Expenditures 16,459,137 19,166,127 19,303,385 20,164,533 20,914,238 21,693,679 22,504,086 Maintenance Expenditures 1,775,748 1,950,588 2,008,203 2,067,793 2,129,353 2,192,951 2,258,662 Total Expenditures 18,234,885 21,116,715 21,311,588 22,232,326 23,043,591 23,886,630 24,762,748 Beginning Balance 916,999 624,296 134,971 100,000 100,000 100,000 100,000 Ending Balance 624,296 134,971 100,000 100,000 100,000 100,000 100,00 Revenue from Measure S 74% 77% 77% 78% 79% 79% 80% The Five -Year Forecast shows the various revenue sources and projected operating expenditures, which are increasing between 2.0 — 4.3% per year. The contribution from Measure S increases from 74% in 2023-24 to 80% by 2029-30. A long-term fiscal strategic plan is recommended to address the increased reliance on Measure S to balance this Fund into the future. 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. Project Type Number of Projects Total Project Cost Circulation 24 632,429,570 Housing 4 20,401,000 Infrastructure 49 117,740,242 Parks/ Re c 18 59,908,080 CFD-Funded 2 63,591,689 The CIP includes a total of $894,070,582 in identified Total CIP 97 894,070,582 capital projects, with a total of $624,379,144 in project funding, representing 70% of all Project Costs. There is $269,691,438 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 be secured before the project construction can commence. Capital projects are categorized into five Project Types, as noted in the adjacent table. 22 1 Annual Operating Budget TRANSMITTAL MESSAGE 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 Fiscal Years 2026-30 CIP program reflects 61% from outside funding sources, with the remaining 39% provided by various City funds, including Measure S, Measure A, Development Impact Fee Funds, General Fund, Capital Financing, and several other sources. City of Temecula Fiscal Year 2025-26 Annual Operating Budget Capital Protect Funding Sources TUMF , 54,161,598, 9% City Funds, State/Local Grants, 244,469,320, 79,448,743, 13% 39% Successor Agency, �__ 750,000,0% Reimm 6ursemes, 40,952,252, 6% Federal Grants, 96,030,119, 15% Development Community Impact Fees, Facility Districts, 53,591,561, 9% 54,975,557 , 9 % Only one new project has been added to the CIP, the Local Roadway Safety Plan Update ($155,000) which is designed to bring the Plan in line with federal safety requirements. As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. The amounts identified in the table below are incorporated into the Proposed Operating Budget and the Five -Year Financial Projections. Summary of Operating & Maintenance Impacts Maintenance and Operations of PW17-01/711 - CITY SECURITY CAMERA SYSTEM Security Camera System 300,000 300,000 300,000 300,000 300,000 FN19-01/724 - CITYWIDE FINANCIAL SYSTEM UPGRADE Annual Software Maintenance 86,000 86,000 86,000 86,000 86,000 ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT Electricity Savings (695,286) (709,475) (723,665) (738,138) (752,901) PW21-09/683 - ELECTRIC VEHICLES CHARGING STATION Electric Charging Vehicles Fees (3,100) (3,100) (3,100) (3,100) (3,100) PW17-19/690 -1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING Required by Caltrans 60,805 62,046 63,289 65,188 67,144 PW17-21/692 - MARGARITA RECREATION CENTER Staffing for MRC (4 positions) 526,609 548,551 570,493 591,600 614,370 Project Staffing for MRC (45 positions - 13.07 FTEs) 705,946 735,361 764,775 795,366 825,978 Additional Utility Costs 71,371 72,828 74,285 77,034 79,999 Janitorial/Security 129,251 131,888 134,526 139,504 144,873 1,433,177 1,488, 628 1,544, 079 1,603, 504 1,665,220 IT20-01/780 - OLD TOWN SECURITY CAMERA & Maintenance fee for Old Town SOUND SYSTEM Sound System 75,000 75,000 75,000 75,000 75,000 PWPE07-03/PW23-18- LONG CANYON CREEK PARK RESTROOMS Janitorial Services 29,866 30,475 31,085 31,706 32,340 PWPE-07/155 - PARK RESTROOMS RENOVATIONS, EXPANSION AND ADA IMPROVEMENTS Janitorial Services 27,591 28,154 28,717 29,292 29,878 Total Incremental Operating & Maintenance Impacts 1,343,919 1,388,203 1,432,490 1,481,158 1,531,921 2025-26 AUTHORIZED STAFFING Total authorized Full Time Equivalent (FTE) positions total 202.2 authorized positions, including five Council Members. The increase reflects 1 new position (Signal Technician 1) compared to the prior year. Annual Operating Budget 1 23 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TRANSMITTAL MESSAGE Public Safety personnel is provided through contracts with Riverside County and CalFire. A total of 117 sworn Sheriff's Deputies and 18 Community Service Officers are included in the Sheriff's budget, and a total of 79 personnel are reflected in the Fire Department budget for Fiscal Year 2025-26. City of Temecula History of Authorized Positions 2so.00 200.00 iso.00 10100 50.00 a-1 N 'n C ✓] �i 1, 0 0 9 0 0 0 C�1 O�1 O d C G O O tl 210.75 n 00 Qf O •i 0 0 0 o 0 a n v � - LL LL 4 to 'D N N H N N1 C 1f1 � n W O o C O N G C3 202.20 N f�V N N N N H O C C O C C 6 In addition to the Authorized Positions, the City employs three Limited -Term -Assignment positions related to the implementation of a new Human Resources/Payroll software system. A significant number of part-time, non- benefitted Project employees are also employed to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2025-26, an estimated 90 full-time equivalents will be hired as seasonal and part-time support. CONCLUSI In conclusion, the City of Temecula is in a solid fiscal position with the General Fund balanced and all reserves fully funded not only in Fiscal Year 2025-26 but throughout the ensuing five-year period. The Capital Improvement Program is robust, with 70% of all Project Costs funded, 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; Ward Komers, Assistant Director of Finance; Paula Majors, Finance Manager; and Catlin Dorset, Budget Manager for their long hours and dedication to the City and this budget process. Sincerely, 0,6 — ol,_ AarAdams City Manager 24 1 Annual Operating Budget 1 1, raj zRbri 1 City of Temecula Fiscal Year 2025-26 Annual Operating Budget Annual Operating Budget 1 25 City of Temecula Fiscal Year 2025-26 Annual Operating Budget DIRECTORY EXECUTIVE MANAGEMENT: City Manager................................................................................................... Aaron Adams City Attorney............................................................................................. Peter M. Thorson Assistant City Manager..................................................................................Kevin Hawkins Deputy City Manager....................................................................................... Luke Watson Director of Legislative Affairs/City Clerk............................................................... Ran di Johl Director of Finance.................................................................................. Jennifer Hennessy Director of Public Works/City Engineer............................................................ Ron Moreno Director of Community Development............................................................... Matt Peters Director of Community Services......................................................................... Erica Russo Director of Information Technology and Support Services ...........................Michael Heslin Director of Human Resources/Risk Management .......................................... Isaac Garibay Captain/Temecula Police Chief...........................................................................Mark Rigali Division Chief/Temecula Fire Chief.....................................................................John Crater Assistant to the City Manager......................................................................... Betsy Lowrey CITY OF TEMECULA BUDGET TEAM: Director of Finance......................................................................................Jennifer Hennessy Assistant Finance Director.................................................................................. Ward Komers Fiscal Services Manager...................................................................................... Paula Majors Management Analyst...........................................................................................Catlin Dorset 26 1 Annual Operating Budget L', ! Temecula Citizens Zak Schwank Jessica Alexander Brandon Kalfus Council Member Mayor Pro Tern Mayor District 5 District 2 District 3 Betsy Lowrey Assistant to the Aaron Adams city Manager City Manager Kevin Hawkins Luke Watson Assistant City Deputy Manager City Manager T Matt Rahn Council Member District 1 Peter Thorson City Attorney James Stewart Council Member District 4 1K L 14 Isaac GariTRIsknfomatlon hael Heslin Erica Russo Ron Moreno Matt Peters Jennifer Hennessy Randi Johl Mark Rigali John Crater Director ri HuDirector of Director of Director of Public Director of Community Director of Director of Legislative Captain/Temecula Division Chiefl Resources and Systems Community Services WorkslCity Engineer Development Finance Affairs/City Clerk Police Chief' Temecula Fire Chief• Manageme City of Temecula Fiscal Year 2025-26 Annual Operating Budget 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 TTEAMWORK among all employees EENHANCEMENT of the work environment through open lines of communication MMUTUAL respect of others EEDUCATION of employees and citizens about the operations and accomplishments of the City CCUSTOMER service is our most important product UUNLIMITED potential for continued personal growth and organizational development LLEADERSHIP in local government AASSUMING 100% responsibility for projects and assignments 28 1 Annual Operating Budget City of Temecula ��_ Fiscal Year 2025-26 Annual Operating Budget CITYWIDE LONG-TERM GOALS CORE VALUES: The Quality of Life Master Plan (QLMP) provides the framework for the City's�°9 A Strategic Budgeting activities. The City Council has set priorities and guided staff in developing seven (7) core values upon which to focus time and resources (as identified in the QLMP). These Q MP areas include:Q�`� RSTER C Safe & Prepared Community Remain one of the safest cities in California and the nation. Ensure funding for public safety remains the highest priority. Maintain a ratio of one police officer per 1,000 population. Support community D oriented policing and maximize community leadership in public safety. Achieve a City ISO rating of 1.0. Maintain a five minute or less response time for fire protection. Minimize impact to life, property and the environment from natural hazards and emergency situations. Provide recreational and other activities for youth. Provide effective enforcement of City zoning, building, fire and grading codes, and graffiti abatement. Continue to provide public information and training surrounding emergency management and public safety. Transportation Mobility & Connectivity Maintain and improve our roadway network. Promote job growth in Temecula and nearby areas. Market the opportunities to work and shop locally. Expand and enhance the transportation network. Establish a connected pedestrian, bicycle and equestrian transportation system. Coordinate land use and transportation to create a balanced, modern and integrated transportation system. Increase transportation and mobility options. Develop a Complete Streets Policy document. Additional public Electric Vehicle (EV) charging stations. Healthy & Livable City Support healthy and active lifestyles. Be a sustainable community that embraces residents' quality of life. Be a diverse community that values and supports people of all ages, backgrounds, cultures, disabilities and religious beliefs. Provide accessible sports, recreational, cultural, health/therapeutic and community engagement facilities, programs and resources for all Temecula residents. Enhance Temecula's position as a regional medical center of excellence. Value the growth of non-profit organizations, churches, temples, mosques, and other places of worship. Continue to be a community where local history is remembered and respected, and local culture and artistic creativity is supported. Annual Operating Budget 1 29 CITYWIDE LONG-TERM GOALS Economic Prosperity City of Temecula Fiscal Year 2025-26 Annual Operating Budget Provide an entrepreneurial culture that offers a growing number of diverse high -paying jobs. Encourage the broadening of higher education opportunities both public and private. Foster an integrated Career Technical Education (CTE) system that builds on curricula offered through Temecula Valley Unified School District, Mt. San Jacinto College and the CSU San Marcos campus at Temecula. Continue to protect the City's special natural resources. Sustainable & Resilient City Be the most sustainable city in Southern California. Ensure safe and sufficient water supplies for the 21st century. Work to maintain the City's high level of air quality possible in Temecula. Develop community resiliency in infrastructure, the economy, natural resources, and hazard mitigation. Adopt a Climate Action Plan (CAP) as part of the General Plan update and Environmental Impact Report (EIR). Accountable & Responsive City Government Equity Provide consistently professional services and information to customers and constituents. Promote innovation and adopt technology that enhances access to information and data. Maintain a flexible organization which responds to the changing needs and priorities of the community. Provide the highest quality of service at the most cost-effective rate while being fiscally responsible. Ensure transparency in all aspects of City government. Support the fair and equitable treatment of all human beings in a just society. Foster a healthy environment and prosperous opportunities for all residents of Temecula. Exhaust all methods of communication and outreach between the City and its residents. Monitor the City's budget and resource allocation to close inequity gaps to ensure that the City's programs, services, educational pathways and infrastructure meet the needs of diverse communities. 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. 30 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 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, 2024. To receive this award, a governmental unit must publish a budget document that meets programs criteria such as policy document, operations guide, financial plan, and communication device. The award is valid for a period of one year only, and 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. In addition to the Distinguished Budget Presentation Award, the City of Temecula also received an award of Special Recognition for the City's Long -Range Financial Plans. This award is earned when all three budget reviewers give the highest possible score in particular categories. GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Bucdget Presentation Award PRESENTED TO City of Temecula California For the Fiscal Year Beeiaulm' g Jnly 01, 2024 OJV4.��t- P- Araw Executive Director Annual Operating Budget 1 31 City of Temecula Fiscal Year 2025-26 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 2025-26 budget award program. California Society of Municipal Finance Officers Certificate ofrlward Operating Budget Excellence Award Fiscal Year 2024-2025 Presented to the City of Temecula For meeting the criteria established to achieve a CSMFO Award in Budgeting. February 7, 2025 �4!LGQ. Ernie Repna 2024 CSMFO President .lames Russell -Field, Chair Recognition Committee Dedicated to Excellence in _Municipal Financial Reporting 32 1 Annual Operating Budget CITY OF TEMECULA AT A GLANCE Median Housing Values April 2025: $771,000 April 2024: $785,000 15t" Safest City in Riverside County Forbes, Feb. 28, 2024 Population 2025: 112,220 2024: 108,700 Median Age ,1.5 Number of Jobs 54,400 City of Temecula Fiscal Year 2025-26 Annual Operating Budget r Fiscal Highlights av Avg. Household Income $145,129 Top 20% TVUSD Test Scores rank in the top 20% of all public schools in-==-- California General Fund Operating Revenue: $113,978,529 Operating Expenditures: $106,722,837 Fund Balance: $35,523,245 Capital Improvement Program $894,070,582 4 97 Projects 42 # of Parks 325 Miles of Streets 0 4.6% 117 71,481 202.20 Education TK-12 Schools: 29 Students: 26,668 Teachers: 1,357 Q14lity oft e 01 m v t e e Tnlernsh/p o Qore��G�sh� J �� o e o0 p,00/?U, .i ' ' 0 ��` ati�osQt Recr es A� eation/Classes - an �ea9Ues Family Friendly Human Services 79 Fire Personnel 39% Percentage of residents with a 4-year College Degree 8.75% Local Economy Sales Tax Rate Annual Sales Tax Revenue (2024) 2.4 million Promenade Mall Area = $9.2M Visitors Per Year Motor Car Parkway = $8.OM (2021) Business Park = $5.7M Temecula Pkwy = $5.3M 40 Regional Shopping = $11.1 M Old Town Temecula = $1.OM General Law City City Motto: Council -Manager Form. of Government "Old Traditions, Incorporated December 1, 1989 New Opportunities" Annual Operating Budget 1 33 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 34 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 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 2025-26. 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 2025-26 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. Annual Operating Budget 1 35 City of Temecula Fiscal Year 2025-26 Annual Operating Budget UNDERSTANDING THE BUDGET DOCUMENT 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 seven Core Values identified in the Temecula 2040 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 is available on the City's website: TemeculaCA.gov/FinancialReports Quarterly Financial Statements ❖ Annual Comprehensive Financial Reports ❖ Cities Financial Transactions Reports For further information, please contact the Temecula Finance Department at (951) 694-6430. 36 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGETARY FUND STRUCTURE I GOVERNMENTAL FUNDS GENERAL FUNDS • General (Fund 001)* • Measure S (Fund 002)* • Fire Facility Acquisition (Fund 006)* • Community Reinvestment Program (Fund 110)* SPECIAL REVENUE FUNDS • 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) • 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)* TEMECULA COMMUNITY SERVICES (TCSD) FUNDS • Parks and Recreation Citywide Operations (Fund 190)* • Service Level B — Streetlight Replacement (Fund 191)* • Service Level B - Street Lighting (Fund 192)* • 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)* • Service Level C - Landscape/Slope Maintenance (Fund 501-530)* • Library (Fund 197)* Annual Operating Budget 1 37 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGETARY FUND STRUCTURE IGOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS • Capital Improvement Fund (Fund 210)*^ • Community Facilities District Funds (Fund 273-278)*" I PROPRIETARY FUNDS INTERNAL SERVICES FUNDS • 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) • Facilities Replacement (Fund 350) I FIDUCIARY FUNDS PRIVATE — PURPOSE TRUST FUNDS • Successor Agency to the Redevelopment Agency (SARDA) Debt Service (Fund 380) *Denotes the City's Major Funds ^Denotes funds which are subject to appropriation and included in audited financial statements, but are summarized and adopted separately and/or as part of the Capital Improvement Program budget. 38 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 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 Temecula, 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. BASIS OF BUDGETING 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 60 days 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. The basis of budgeting is the same as the basis of accounting used in the City's Annual Comprehensive Financial Report (ACFR). 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 to reserve that portion of the applicable appropriation, is employed in the governmental funds. Outstanding encumbrances committed to current -year 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. Annual Operating Budget 1 39 DESCRIPTION OF FUNDS GOVERNMENTAL FUNDS General Funds: City of Temecula Fiscal Year 2025-26 Annual Operating Budget General Funds are used to account for most governmental functions and focus on the near -term inflows and outflows of spendable resources. 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. Community Reinvestment Program (110)* — This fund was established to provide various community grants to support the local economy in its recover from the COVID-19 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. 40 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget DESCRIPTION OF FUNDS Development Impact Fees Fund (120) — Used to account for activity generated and funded by development applications 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. 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. 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. Annual Operating Budget 1 41 City of Temecula Fiscal Year 2025-26 Annual Operating Budget DESCRIPTION OF FUNDS 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 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. 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. 42 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget DESCRIPTION OF FUNDS 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. *Denotes the City's Major Funds Annual Operating Budget 1 43 FUNDS AND DEPARTMENTS City of Temecula City Funds City of Temecula Fiscal Year 2025-26 Annual Operating Budget 001 General* 165 Affordable Housing* 002 Measure S* 170 Measure A* 006 Fire Facility Acquisition* 198 Public Art* 100 Gas Tax 210 Capital Improvement Program* 102 Road Maintenance Rehabilitation Act (RMRA) 300 Insurance 103 Street Maintenance Fund 305 Workers' Compensation 105 NPDES In Lieu Fees 310 Vehicles and Equipment 106 Uptown Temecula New Streets In Lieu Fees 320 Information Technology 110 Community Reinvestment Program* 325 Technology Replacement 120 Development Impact Fees 330 Support Services 125 Public, Education & Government (PEG) 335 Support Services Replacement 140 Community Development Block Grant (CDBG) 340 Facilities 145 Temecula Energy Efficiency Asset Management 350 Facilities Replacement 150 AB 2766 Motor Vehicle Subvention 380 SARDA Debt Service 160 Supplemental Law Enforcement Services General Fund Departments 001.100 City Council 001.162 Building & Safety 001.101 Community Support 001.163 Land Development 001.110 City Manager 001.164 Public Works 001.111 Office of Public Information & Economic Development 001.165 CIP Public Works 001.115 Emergency Management 001.167 Parks Maintenance 001.120 City Clerk 001.170 Temecula Sheriff's Office 001.130 City Attorney 001.171 Fire 001.140 Finance 001.172 Animal Control 001.150 Human Resources 001.199 Non -Departmental 001.161 Planning *Denotes the City's Major Funds 44 1 Annual Operating Budget FUNDS AND DEPARTMENTS Temecula Community Services District (TCSD) TCSD Funds 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 190.180.164 General Maintenance 190.180.999 General Operations 190.181.999 Human Services Operations 190.182.999 Community Recreation Center Operations 190.183.999 Special Events Operations 190.184.999 Temecula Community Center Operations 190.185.999 Museum and Cultural Arts Operations *Denotes the City's Major Funds City of Temecula Fiscal Year 2025-26 Annual Operating Budget 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* 190.186.999 Aquatics Operations 190.187.999 Sports Operations 190.189.999 Community Theater Operations 190.197.999 Contract Classes Operations 190.201.999 Homeless Outreach and Prevention Operations 190.202.999 Workforce Development Annual Operating Budget 1 45 City of Temecula Fiscal Year 2025-26 Annual Operating Budget FUNDING SOURCES BY DEPARTMENT City Funds Government Major Fum General Development Services Services Works Safety Fund 001: General Fund ✓ ✓ ✓ ✓ ✓ Fund 002: Measure S Fund ✓ ✓ ✓ ✓ ✓ Fund 006: Fire Facility Acquisition ✓ ✓ Fund 165: Affordable Housing ✓ Fund 170: Measure A ✓ Fund 190: Temecula Community Svcs -Citywide Operations ✓ ✓ ✓ ✓ Fund 191: Service Level B - Streetlight Replacement ✓ ✓ Fund 192: Service Level B - Street Lighting ✓ ✓ 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 ✓ ✓ Fund 198: Public Art ✓ ✓ ✓ Funds 501-530: Service Level C - Landscape/Slope Maint. ✓ ✓ Fund 210: Capital Improvement Program ✓ ✓ ✓ ✓ ✓ 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 120: Development Impact Fees (DIF) ✓ ✓ Fund 125: Public, Education & Government (PEG) Fees ✓ 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 380: Debt Service ✓ ✓ 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 ✓ ✓ ✓ ✓ ✓ 46 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET PROCESS The annual budget process begins in February of each year. The budget team, which includes the City Manager, Finance Director, Assistant Finance Director, Fiscal Services Manager 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 calendar, 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 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. Community Satisfaction Survey Board & Commissions Feedback Prior -Year Carryover to complete projects Program & Services Master Plans City Council Policies Annual Operating Budget 1 47 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET PROCESS 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 `- --- - - comment and to review the components of the Budget and any modifications to fiscal policies, pi formal consideration for adoption. Any changes ba on this review are incorporated prior to adoption the following City Council meeting, which typically 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 requests for additional funding require the approvi the City Council. As referenced in the Budget Resi the City Manager has the authority to make chan, departmental budgets. The level of budgetary contrui tmai 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. 48 1 Annual Operating Budget Process begins with analysis of prior year activity and update of five-year projections y 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? F' Meeting with City Manager, I Finance Director and Budget Team to review prior year performance and identify upcoming budget L goals Budget Requests, Revenues, Goals, Performance Measures, and Policies are all adopted at one City Council meeting , Final published budget document distributed and posted on City website City Manager and Executive q Team review requests and set . priorities for spending , Departments review NPV14 and adjust budgets Adjustment throughout the year Jwkh� -A Update calendar, ity Council determines standard forms and budget priorities and procedures, calculate ii budget targetskoff Meeting with Review City financial epartment Heads policies, recommend and Analysts changes Create detailed expenditure and revenue projections Compile citywide budget requests and revenues for budget City Manager approval City Council approval I Meet with department staff to develop annual objectives based on L Citywide long-term goals A City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET ENGAGEMENT SESSIONS The City of Temecula remains committed to transparent and thoughtful financial planning that reflects community priorities. As part of the Fiscal Year 2025-2026 budget engagement process, an interactive survey was conducted with each of the City's five commissions —Community Services, Planning, Traffic Safety, Old Town Local Advisory, and Race, Equity, Diversity, and Inclusion (REDI). These sessions gave Commissioners the opportunity to review draft survey questions and provide input on emerging priorities for the City's operational and capital planning. The results of the budget engagement sessions are summarized in the following infographic. OHow would you rate the overall quality of life in Are you satisfied or dissatisfied with the job the City Temecula? © is doing to provide services? 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% Fxcsll—t Very Satisfied Good Fair Poor Very Poor Somewhat Satisfied Somewhat Dissatisfied Very Dissatisfied .................................................................................................................................................... ©What are the names of the one or two stores you Are you satisfied or dissatisfied with the City's would most like to have located in the City of 0 efforts to improve traffic circulation? Temecula? 0% 26% sox 9tG mtk5t Very satisfied Ma Somewhat 11 4 Satisfied Somewhat 1 KEA Dissatisfied AREI very 4 3 Dissatisfied ©What are the one or two things that you like most t 0 What are the one or two things that you like least about living in the City of Temecula? about living in the City of Temecula? ^ Homelessness /` City parks 6 EventaP suRn `------------------------ Traffic Restaurants 5 Safety 8 -� 25 ------------------------------------------------------------------------------------------------------------------.----.----...-------------------- OIf you could attend one signature event each year, which would you attend?��I;i� 0% 36% 50% 76% 100% Chnst-Parade 4th ai July Fireworks '• • ath of July Parade NYE G,o Pe D,.p E Rad Run flat i 50 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget il!Z44111141-M L71110 FISCAL YEAR 2025-26 Date Item Responsible Department 2/1/25 Update General Fund and TCSD Revenue & Expenditure Finance Five -Year Forecast 2/12/25 Annual Operating Budget (AOB) Kick -Off Meeting All Departments 2/12/25 Capital Improvement Program (CIP) Kick -Off Meeting All Departments 3/5/25 CIP Project and Operating Requests due All Departments Feb -March Budget Engagement Sessions with City's five Commissions Finance 3/11/25 City Council Review of Budget Policies & Priorities Manager/Finance 3/13-3/20/25 AOB Review Meetings All Departments 3/26/25 CIP Review Meeting All Departments 3/24/25 Preparation of Internal Service Fund Allocations Finance 4/2/25 City Manager review of Operating Requests City Manager/Finance 4/7/25 Department Narratives for AOB due All Departments 4/17/25 Finalize Budget Policies City Manager/Finance 4/25/25 Appendices due All Departments 4/24/25 Traffic Safety Commission review of CIP Public Works 5/6/25 Strategic Finance Ad Hoc Subcommittee Meeting City Manager/Finance 5/12/25 Proposed CIP and AOB Document Distribution Finance 5/12/25 Community Services Commission review of CIP TCSD 5/21/25 Planning Commission review of CIP Community Development 5/22/25 City Council Budget Workshop All Departments 5/27/25 City Council Meeting — Budget Adoption All Departments 5/29/25 Old Town Local Advisory Committee review of CIP Community Development Annual Operating Budget 1 51 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 52 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget L10]l[41:7_\l1"91Z1_1ki[a]/_14]:Z63L11111111MZI 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 Team 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 remain flat compared to the prior year, with any new requests 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. Annual Operating Budget 1 53 City of Temecula Fiscal Year 2025-26 Annual Operating Budget LONG RANGE FINANCIAL PROJECTION • Benefits — projected using an employer contribution pension rate of 26% of labor costs, plus a 2.3% cost of living adjustment negotiated per the City's employment contracts. The City has pro -actively reduced the CaIPERS unfunded pension liability utilizing available fund balance and monies set aside in a Section 115 Irrevocable Pension Trust. To date, a total of $29.7 million has been remitted to CaIPERS in the form of "Additional Discretionary Payments (ADP);" which has resulted in ongoing annual savings of $3.5 million in pension costs. This savings is reflected in the Non -Departmental section of the General Fund expenditures. • 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 2025-26 is projected to be $35,523,239, of which $26,680,709 is committed to fulfilling the Fund's reserves. A total of $465,524 of fund balance is committed to cover the costs of a Sheriff's Deputy position funded by the Pechanga Tribe. A total of $8,377,005 in fund balance is unassigned and available for one-time appropriations. Fiscal Year 2025-26 General Fund Revenue is projected to increase 7.6% over the prior year with a total of $113,978,529. Tax revenues are projected to increase by 12.4%, with the growth expected in Sales Tax (2.5%), Property Tax (4.4%), Transient Occupancy Tax ($1.6%), Measure C (9.0%), and Transfers -In from Measure S to support Public Safety. Total Fiscal Year 2025-26 General Fund Operating Expenditures total $106,722,837, which represents an 8.0% increase over the prior fiscal year, due primarily to significant increases in Public Safety contracts with the County of Riverside. The Sheriff Department is projected to increase by 11.1%, due mostly to a 9.5% projected increase in the contract with the Riverside County Sheriff's Department, plus the acquisition of four motorcycles due for replacement. The Fire Department is projected to increase by 25.6%, due to contractual increases reflected in the County's contract with CalFire, which included the reversal of a one-time reduction in CaIPERS pension costs for CalFire employees in the prior fiscal year. 140,D00,000 130,000,000 120,000,000 110,000,000 100,000,000 90.0DOX0 80,0D0,000 70,0DDA00 60,DD0,000 50,000,000 General Fund 5-Year Projections Revenues Over Expenditures �yZO �� �y212Z �y22443 f1114a Fy?A xs F 10' �y75 ZZ FRZI ZS 4yZ8 Z9 fy79'30 —Expenditures —Revenues 54 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR FINANCIAL PROJECTION - GENERAL FUND FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Proposed % Projected % Projected % Projected Y. Projected % Revised % Actuals Budget Change Budget Change Budget Change Budget Change Budget Change Budget Change Revenue: - Property Tax 11,231,801 11,652,749 3.7% 12,164,898 4.4% 12,651,494 40% 13,157,554 40% 13,683,856 4.0% 14,231,210 40% Sales and Use -fax 46,566,619 46,185,715 -0.8% 47,340,358 2.5% 49,760,569 3.0% 50,223,386 3.0% 51,981,204 3.5% 53,800,546 3.5% Less: Sales Tax Sharing Agmt (1,556,194) (1,640,791) 5.4% (1,690,014) 3.0% (1,740,715) 3.0% (1,792,936) 3.0% (1,846,724) 3.0% (1,902,126) 3.0% Franchise Fees 4,343,507 4,566,382 5.1% 4,229,094 -7.4% 4,271,385 1.0% 4,314,099 1.0% 4,357,240 1.0% 4,400,812 1.0% Transient Occupancy Tax 4,998,676 4,428,313 -11.4% 4,500,000 1.6% 4,635,000 3.0% 4,774,050 3.0% 5,012,753 5.0% 4,917,272 -1.9% Special Tax (Measure C) 1,908,085 1,926,088 0.9% 2,100,o00 9.0% 2,110,500 0.5% 2,121,053 0.5% 2,131,658 0.5% 2,142,316 0.5% Licenses, Permits and Service Charges 6,965,814 5,859,682 -15.9% 6,623,241 13.0% 6,752,801 2.0% 6,884,924 20% 7,D19,66D 2.0% 7,157,060 20% Fines and Forfeitures 579,995 411,406 -29.1% 467,835 13.7% 472,513 1.0% 477,238 1.0% 482,011 1.0% 486,831 1.0% Use of Money and Property 2,817,147 1,570,390 -44.3% 2,029,640 29.2% 2,049,936 1.D% 2,070,436 1.0% 2,091,140 1.0% 2,112,052 1.0% Intergovernmental Revenues 10,709,849 11,244,061 5.0% 11,713,171 4.2% 12,177,895 4.0% 12,661,171 4.0% 13,163,739 4.0% 13,686,371 4.0% Reimbursements 4,691,860 5,003,721 6.6% 5,260,738 5.1% 5,503,618 4.6% 5,771,036 4.9% 6,077,466 4.4% 6,265,543 3.9% Miscellaneous 309,539 319,708 3.3% 262,512 -17.9% 265,137 1.0% 267,789 1.0% 270,466 1.0% 273,171 1.0% Subtotal - Operating Revenues 93,566,696 91,526,924 -2.2% 95,001,472 3.8% 97,910,134 3.1% 100,929,797 3.1% 104,374,468 3.4% 107,571,057 3.1% Operating Transfersln- GasTax/SLESF/PARS 10,392,823 8,411,339 -19.1% 5,428,738 -35.5% 3,491,611 -35.7% 3,555,742 1.8% 3,621,156 1.8% 3,687,878 1.8% Operating Transfersln-MeasureS 5,230,205 5,995,925 14.6% 13,548,319 126.0% 15,917,431 17.5% 21,252,851 33.5% 22,265,951 4.8% 17,615,754 -20.9% Total Revenues & Transfers In 109,189,725 105,934,188 -3.0% 113,978,529 7.696 117,319,176 2.9% 125,738,391 7.2% 130,261,574 3.6% 12B,874,689 -1.1% Prior Version (FY24-25 Mid -Year) 109,199,725 110,573,3a 113,997,924 119,080,575 125,845,797 129,406,389 1fa Expenditures by Dept: City Council 584,223 733,181 25.5% 742,448 1.3% 766,185 3.2% 790,731 3.2% 816,113 3.2% 842,363 3.2% Community Support 120,000 125,000 42% 115,000 -8.0% 115,000 0.0% 115,000 0.0% 115,000 0.0% 115,000 0.0% City Manager 2,067,960 2,704,600 30.8% 2,796,478 3.4% 2,883,091 3.1% 2,972,457 3.1% 3,064,667 3.1% 3,159,814 3.1% Economic Development 1,776,315 1,934,943 8.9% 1,927,829 -0.4% 1,985,099 3.0% 2,044,154 3.0% 2,105,052 3.0% 2,167,854 3.0% Emergency Management 517,975 725,598 40.1% 786,552 8.4% 805,656 2.4% 830,559 3.1% 856,291 3.1% 882,880 3.1% City Clerk 1,478,069 1,720,159 16.4% 1,655,449 -3.8% 1,705,913 3.0% 1,757,972 3.1% 1,811,677 3.1% 1,967,082 3.1% City Attorney 922,084 1,115,000 20.9% 1,115,000 0.0% 1,137,300 2.0% 1,160,046 2.0% 1,183,247 2.0% 1,206,912 2.0% Finance 3,912,439 4,246,920 8.5% 4,467,953 5.2% 4,607,076 3.1% 4,750,631 3.1% 4,898,764 3.1% 5,051,624 3.1% Human Resources 1,825,985 2,227,631 22.0% 2,388,639 7.2% 2,454,577 2.8% 2,522,446 2.8% 2,592,307 2.8% 2,664,221 2.8% Planning 3,118,651 3,704,937 18.8% 4,032,039 8.9% 4,153,171 3.0% 4,278,106 3.0% 4,406,965 3.0% 4,539,979 3.0% Building & Safety 4,718,247 5,147,948 9.1% 5,325,169 3.4% 5,489,094 3.1% 5,658,225 3.1% 5,832,733 3.1% 6,012,792 3.1% Land Development 2,162,642 2,590,073 19.8% 2,333,802 -9.9% 2,409,411 3.2% 2,487,522 3.2% 2,569,220 3.2% 2,651,593 3.2% Public Works 7,845,774 8,407,337 7.2% 8,429,191 0.3% 8,673,862 2.9% 8,926,122 2.9% 9,186,221 2.9% 9,454,417 2.9% CIPAdmin 3,456,647 3,533,694 2.2% 3,768,335 6.6% 3,887,072 3.2% 4,009,608 3.2% 4,136,067 3.2% 4,266,577 3.2% Parks Maintenance 5,764,177 6,365,642 10.4% 6,467,042 1.6% 6,626,244 2.5% 6,789,662 2.5% 6,957,417 2.5% 7,129,634 2.5% Sheriff 40,785,303 43,630,453 7.0% 48,474,402 11.1% 51,224,995 5.7% 53,755,094 4.9% 56,410,613 4.9% 59,197,787 4.9% Fire 10,856,217 11,083,560 2.1% 13,923,013 25.6% 14,947,128 7.4% 15,954,427 6.7% 17,015,476 6.7% 18,332,989 7.7% Animal Control 444,156 441,582 -Q6% 777,820 76.1% 785,598 1.0% 793,454 1.0% 801,389 1.0% 809,403 1.0% Non -Departmental 1,140,881 1,072,100 -6.0% 674,400 -37.1% 1,179,980 75.0% 1,200,746 1.8% 1,222,156 1.8% 1,244,230 1.8% Projected Pension UAL Savings - (2,710,437) (3,477,724) (3,613,979) (3,700,691) (3,789,832) (3,881,468) Total Expenditures 93,497,744 90,799,922 5.7% 106,722,837 8.0% 112,222,462 5.2% 117,096,271 4.3% 122,19D,544 4.4% 127,715,591 4.5% Revenue Over Expenditures 15,691,981 7,134,265 7,255,692 5,096,715 9,642,119 8,071,030 1,159,107 Annual Operating Budget 1 55 City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR FINANCIAL PROJECTION - GENERAL FUND FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Proposed % Projected % Projected % Projected % Projected % Revised % Actuals Budget Change Budget Change Budget Change Budget Change Budget Change Budget Change Transfers Out and One Time Payments: Community Reinvestment Program Transfer to Capital Improvement Fund 206,957 (1,495,353) (50D,000) 1-15 Congestion Relief (63,949) (302,494) Main Street Bridge 328,048 General Plan Update (57,141) (1,182,859) (500,000) Fire Facility Acquistion Fund (1,500,000) - Insurance Fund Reserve (1,172,672) Workers' Compensation Fund Reserve - (436,678) CaIPERS Unfunded Liability Paydown (14,538,003) (7,913,492) (8,267,933) (8,455,217) (9,019,970) (6,304,545) OPEB Unfunded Liability Paydown �3,254,000) Section 115 Pension Trust (2,000,000) Total Transfers Out/One-Time Pmts (21,085,046) (11,008,195) (8,767,833) (8,455,217) (9,019,970) (6,304,545) Revenues Over/(Under) Expenditures (5,393,065) (3,873,930) (1,512,141) (3,358,502) (377,851) 1,766,485 1,159,107 Beginning Fund Balance 46,302,374 40,909,309 37,035,379 35,523,239 32,164,736 31,786,886 33,553,371 1 Ending Fund Balance Prior Version (R24-25 Mid -Year) 40,909,309 40,909,3C�9 37,035,379 38,60S,613 35,523,239 = ,.222.948 32,164,736 35,473,907 31,786,886 3s,372,846 33,553,371 36,500,002 34,712,479 r"a Desired Reserve Balance (25%) 23,374,436 24,699,981 26,680,709 28,055,615 29,274,068 30,547,636 31,928,895 Reserve Balance 23,374,436 24,699,981 26,680,709 28,055,615 29,274,068 30,547,636 31,928,895 % Funded 100% 100% 100% 100% 100% 100% 100% Fund Balance Components Committed to: Economic Uncertainty (20%) 18,699,549 19,759,984 21,344,567 22,444,492 23,419,254 24,438,109 25,543,116 Secondary Reserve (5%) 4,674,887 4,939,996 5,336,142 5,611,123 5,854,814 6,109,527 6,395,779 Pechanga IGA 422,244 443,356 465,524 489,800 494,909 509,154 534,612 Assigned to: Capital Projects 1,266,443 500,000 - - - - - Unassigned: 15,846,186 11,392,043 8,377,005 3,620,321 2,027,909 2,496,590 2,248,970 Total Fund Balance as of 6/30 40,909,309 37,035,379 35,523,239 32,164,736 31,786,886 33,553,371 34,712,478 Unassigned Fund Balance as % of Op. Exp. 17% 12% 8% 3% 2% 2% 2% 56 1 Annual Operating Budget PLANNING BUILDING LAND DEVELOPMENT PUBLIC WORKS PARKS & FACILITIES MAINTENANCE Special Tax iMeasure Q Lease Income Other POLICE Parking Citations Miscellaneous Vehicle Impound Fees Reimbursements FIRE Various Grants NOWDEPARTMENTAL Residual RPTTF Distribution Property Tax (Secured) Property Tax (Unsecured) Supplemental Tax -AB 2345 Property Transfer Tax Franchise Fees Transient Occupancy Tax Sales and Use Tax - State of Calif. Less: Sales Tax Sharing Agreement FEMA Grants Homeowner Exemption MVLF- property tax in lieu Motor Vehicle in Lieu- State Vehicle Code Fines City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR REVENUE PROJECTION - GENERAL FUND Actuals FY 24-25 Revised Budget % Chg From PriorYr FY 25-25 Proposed %Chg From PriorYr FY 25-27 Projection % Chg From PriorYr FY 27-28 Projection % Chg From PriorYr FY 28-29 Projection %Chg From PriorYr FY 29-30 Projectioi 609,014 5&5,404 26.9% 595,404 0.0% 597,112 2.0% 509,o54 2.0% 521,235 2.0% 633,61 2,510,993 2,3W,000 2.2% 2,547,900 10.8% 2,598,756 2.0% 2,650,731 2.0% 2,703,746 2.0% 2,757,& 1,650,654 1,355,522 -17.7% 1,535,522 13.3% 1,567,252 2.0% 1,598,597 2.0% 1,630,559 2.0% 1,663,11 2,300 850 -19.9% 350 -58.9% 354 1.0% 357 1.0% 361 1.0% 31 1,908,0&5 1,925,068 0.9% 85,291 72,992 -14.4% 37,743 13,200 359.8% 115,367 104,040 -9.&% 150,1413 127,456 37.1% 137,526 124,849 -9.2% 112,1363 150,000 -90.2% 1,471,704 1,322,798 -15.0% 42,000 41,171 -2.0% 236,401 250,000 5.8% 13,205,616 9,1315,255 7.7% 459,231 515,313 12.7% 457,395 263,925 -43.5% 797,057 637,000 -20.1% 4,343,507 4,566,382 5.1% 4,998,676 4,428,313 -11.4% 46,565,6113 46,185,715 -0.8% (1,556,1134) (1,540,791) 5.4% 0 125,321 0.0% 67,102 70,256 4.7% 10,532,198 11,078,042 5.2% 135,651 124,849 -8.0% 327,102 182,518 -44.2% 2,100,000 90,572 3,570 109,1513 153,955 125,000 150,000 1,553,069 0 253,600 1 10,379,350 4 536,956 4 274,482 4 550,000 2 4,2213,094 -7 4,500,000 1 47,340,359 2 (1,690,014) 3 40,000 -58 70,500 0 11,586,423 4 126,749 1 233,676 28 % Chg From Pri or Yr 2,110,500 0.5% 2,121,053 0.5% 2,131,658 0.5% 2,142,316 0.5% 91,479 1.0% 92,392 1.0% 93,316 1.0% 94,250 1.0% 3,606 1.0% 3,542 1.0% 3,679 1.0% 3,715 1.0% 110,251 1.0% 111,353 1.0% 112,467 1.0% 113,591 1.0% 155,535 1.0% 157,090 1.0% 158,661 1.0% 160,249 1.0% 126,250 1.0% 127,513 1.0% 129,799 1.0% 130,076 1.0% 151,500 1.0% 153,015 1.0% 154,545 1.0% 156,091 1.0% 1,696,330 2.0% 1,730,257 2.0% 1,754,862 2.0% 1,8W,1_59 2.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 263,744 4.0% 274,2134 4.0% 295,266 4.0% 296,676 4.0% 10,794,524 4.0% 11,225,305 4.0% 11,675,357 4.0% 12,142,371 4.0% 559,445 4.0% 580,792 4.0% 504,014 4.0% 529,174 4.0% 285,461 4.0% 295,880 4.0% 308,755 4.0% 321,105 4.0% 576,000 4.0% 703,040 4.0% 731,162 4.0% 760,408 4.0% 4,271,395 1.0% 4,314,0139 1.0% 4,357,240 1.0% 4,400,912 1.0% 4,635,000 3.0% 4,774,050 3.0% 5,012,753 5.6% 4,917,272 -1.9% 49,760,569 3.0% 50,223,396 3.0% 51,981,204 3.5% 53,900,546 3.5% (1,740,715) 3.0% (1,792,935) 3.0% (1,846,724) 3.0% (1,902,125) 3.0% 0 -100.0% 0 0.0% 0 0.0% 0 0.0% 73,320 4.0% 76,253 4.0% 79,303 4.0% 82,475 4.0% 12,045,890 4.0% 12,531,975 4.0% 13,033,150 4.0% 13,554,476 4.0% 128,015 1.0% 129,296 1.0% 130,599 1.0% 131,994 1.0% 236,013 1.0% 239,373 1.0% 240,757 1.0% 243,154 1.0% Annual Operating Budget 1 57 City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR REVENUE PROJECTION - GENERAL FY 24-25 % Chg FY 25-25 % Chg FY 26-27 % Chg FY 27-28 % Chg FY 28-29 %Chg FY 29-30 % Chg Revised From From From From From From Actuals Budget PriorYr Proposed PriorYr Projection PriorYr Projection PriorYr Projection PriorYr Projection PriorYr Business Licenses 283,406 280,909 -0.9% 285,526 2.0% 289,391 1.0% 292,285 1.0% 295,209 1.0% 298,160 1.0% Miscellaneous 158,338 190,100 20.1% 106,332 -44.1% 107,395 1.0% 108,469 1.0% 109,554 1.0% 110,650 1.0% Right of way advertising 1,050 2,142 104.0% 2,185 2.0% 2,207 1.0% 2,229 1.0% 2,251 1.0% 2,274 1.0% Investment Interest 2,552,725 1,324,449 -49.1% 1,757,567 32.7% 1,775,143 1.0% 1,7132,894 1.o% 1,810,823 1.0% 1,929,931 1.o% Lease Income 159,277 155,000 -2.5% 174,000 5.5% 175,740 1.0% 177,497 1.0% 179,272 1.0% 181,065 1.0% Reimbursements- Miscellaneous 179,299 160,000 -10.3% 163,200 2.0% 154,832 1.0% 166,490 1.0% 169,145 1.0% 169,827 1.o% Reimbursements- Pechanga IGA 404,061 422,244 4.5% 473,557 12.2% 501,570 6.0% 527,069 5.0% 553,422 5.0% 581,093 5.0% Reimbursements- Capital Improvement Program 3,172,243 3,180,326 0.3% 3,391,502 5.5% 3,527,162 4.0% 3,668,245 4.0% 3,814,978 4.0% 3,967,577 4.0% Operating Transfer In - Measure S Fund 5,230,205 5,995,925 14.6% 13,548,319 126.0% 15,917,431 17.5% 21,252,851 33.5% 22,255,951 4.8% 17,615,754 -20.9% Operating Transfer In - Gas Tax 3,075,185 3,129,775 1.9% 3,143,671 0.4% 3,206,544 2.0% 3,270,675 2.0% 3,336,099 2.0% 3,402,811 2.0% OperatingTransferIn-COPS 317,639 281,554 -11.4% 285,067 1.2% 285,067 0.0% 295,067 0.0% 285,067 0.0% 295,067 0.0% Op e rati ng Tra n sfer In - PARS Trust 7,000,000 51000,000 -29.6% 2,000,000 -60.0% -100.0% 0.0% 0.0% 0.0% Interest Income - Leases 9,2,53 7,959 -19.2% 7,501 -5.8% 7,576 1.0% 7,652 1.0% 7,728 1.0% 7,806 1.0% Reimbursements-ServicesCFOs 535,475 895,330 39.3% 1361,8713 S.5% 1,077,249 12.0% 1,175,009 9.1% 1,254,849 6.8% 1,30-3,113 4.3% State Mandated Cost Reimbursement 162,169 50,000 -59.2% 50,060 0.0% 50,000 0.0% 50,000 0.0% 50,000 0.0% 50,000 0.0% AB1379 Collection State Imposed $4 Fee 26,651 30,000 12.6%1 30,600 2.0%1 30,906 1.0% 31,215 1.0% 31,527 1.0% 31,842 1.0% 58 1 Annual Operating Budget City Council: Community Support City Manager: Economic aev. Emerg Mgmt City Clerk: Salaries O&M ISF Salaries Project Salaries O&M ISF Salaries Proj ect Sa la ri e s O&M ISF Salaries O&M Capital Outlay ISF Salaries Proj ect Sa la ri es O&M ISF City Attorney (Contract) Finance Salaries Project Salaries O&M Capital Outlay ISF City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND 23-24 24-25 % 25-26 % 26-27 % 27-29 % 28-29 % 29-30 % Actuals Revised Change Proposed Change Projection Change Projection Change Projection Change Projection Change 123,033 188,2613 53.0% 219,665 16.7% 226,255 3.D% 233,043 3.0% 240,034 3.0% 247,235 3.0% 136,148 217,667 59.9% 188,206 -13.5% 191,570 -3.5% 195,810 2.0% 195,726 2.0% 203,720 2.0% 325,042 327,254 0.7% 334,577 2.2% 347,960 2.4% 361,875 4.0% 376,354 4.0% 391,409 4.0% 584,223 733,181 25.5% 742,448 1.3% 766,185 1.0% 790,731 3.2% 816,113 3.2% 842,363 3.2% 120,000 125,000 4.2% 115,000 -8.0% 115,000 -8.0% 115,000 0.0% 115,000 0.0% 115,000 0.0% 1,376,354 1,999,435 45.3% 2,057,409 2.3% 2,115,130 3.0% 2,192,704 3.0% 2,249,185 3.0% 2,315,531 3.0% 2,385 - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% 207,043 227,209 9.7% 233,619 2.9 % 238,291 -2.7% 243,057 2.0% 247,519 2.0% 252,977 2.0% 482,178 477,956 -0.9% 505,451 5.2% 525,669 2.5% 546,695 4.0% 559,554 4.0% 591,306 4.0% 2,067,960 2,704,600 30.8% 2,796,478 3.4% 2,883,091 2.4% 2,972,457 3.1% 3,064,667 3.1% 3,159,314 3.1% 996,558 1,010,729 1.4% 1,065,282 5.4% 1,097,240 3.0% 1,130,159 3.0% 1,154,052 3.0% 1,198,994 3.0% 16,376 19,745 20.6% 21,752 10.2% 22,415 3.0% 23,097 3.0% 23,780 3.0% 24,493 3.0% 451,257 531,914 10.5% 443,647 -15.7% 457,520 -12.4% 465,772 2.0% 476,109 2.0% 495,630 2.0% 282,124 372,555 32.1% 392,138 5.3% 407,924 2.6% 424,136 4.0% 441,102 4.0% 458,746 4.0% 1,776,315 1,934,943 8.9% 1,927,829 -0.4% 1,985,099 -1.1% 2,044,154 3.0% 2,105,052 3.0% 2,167,854 3.0% 167,300 196,806 11.7% 209,207 12.0% 215,483 3.0% 221,948 3.0% 228,606 3.0% 235,464 3.0% 98,307 247,549 151.9% 253,317 2.3% 258,383 -1.1% 263,551 2.0% 269,922 2.0% 274,199 2.0% 29,021 12,100 -58.3% 5,000 -58.7% -100.0% 0.0% 0.0% 0.0% 223,347 279,043 24.9% 319,028 14.3% 331,799 2.3% 345,061 4.0% 359,963 4.0% 373,219 4.0% 517,975 725,598 40.1% 786,552 8.4% 805,656 -11.0% 830,559 3.1% 8%,Z91 3.1% 882,880 3.1% 959,774 1,041,632 8.5% 1,080,496 3.7% 1,112,911 3.0% 1,145,298 3.0% 1,180,697 3.01A 1,216,108 3.0% 8,500 11,400 34.1% 11,400 0.0% 11,742 3.0% 12,094 3.0% 12,457 3.0% 12,931 3.0% 152,922 303,553 98.5% 241,731 -20.4% 246,555 -11.5% 2,51,497 2.0% 255,527 2.0% 261,557 2.0% 356,872 363,574 1.9% 321,822 -11.5% 334,695 2.3% 349,083 4.0% 352,006 4.0% 376,495 4.0% 1,478,068 1,720,159 16.4% 1,655,449 -3.8% 1,705,913 0.5% 1,757,972 3.1% 1,811,677 3.1% 1,867,092 3.1% 922,094 1,115,000 20.9% 1,1151000 0.0% 1,137,300 2.0% 11160,046 2.0% 1,183,247 2.0% 1,206,912 2.0% 2,915,194 3,122,997 7.1% 3,233,7613 3.6% 3,330,782 -1.4% 3,430,706 3.0% 3,533,627 3.0% 3,639,635 3.0% - 20,048 0.0% 166,315 729.6% 171,305 3.0% 176,445 3.0% 181,739 3.0% 187,190 3.0% 226,737 325,917 43.7% 279,737 -14.2% 295,332 -25.9% 291,038 2.0% 296,959 2.0% 302,796 2.0% - 33,000 - -10D.0% 770,508 745,068 -3.3% 789,131 5.9% 815,556 2.5% 852,442 4.0% 885,540 4.0% 1322,002 4.0% 3,912,439 4,246,920 8.5% 4,467,953 5.2% 4,607,076 -2.5% 4,750,631 3.1% 4,898,764 3.1% 5,051,624 3.1% Annual Operating Budget 1 59 HR Salaries Project5alaries O&M ISF Planning: Salaries Project Salaries O&M ISF Code Enforcement Salaries O&M Capital Outlay ISF Building&Safety Salaries O&M ISF Land Development: Salaries Project Salaries O&M Capital Outlay ISF Public Works: Salaries Project5alaries O&M Capital Outlay ISF City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND 23-24 24-25 % 25-26 % 24Er27 % 27-28 % 28-29 % Actuals Revised Change Proposed Change Projection Change Projection Change Projection Change '347,045 1,018,312 7.5% 1,136,730 11.5% 1,170,832 -15.2% 1,205,957 3.0% 24,433 9,519 -60.6% - -100.0% - 0.0% - 0.0% 586,059 937,564 60.0% '312,029 -2.7% '330,259 -3.1% '349,974 2.0% 268,437 262,135 -2.3% 339,881 25.7% 353,476 2.5% 357,515 4.0% 1,925,985 2,227,631 22.0% 2,388,639 7.2% 2,454,577 -5.2% 2,522,446 2.3% 1,538,155 2,032,802 4.5% 2,312,951 13.9% 2,382,340 3.0% 2,453,910 3.o% 15,100 70,720 368.3% 93,144 31.7% 95,938 3.0% 98,815 3.0% 265,370 775,929 192.4% 904,409 3.7% 920,497 -14.0% 936,907 2.0% 899,986 825,585 -9.3% 921,535 -0.5% 854,395 2.8% 888,572 4.0% 3,118,651 1,704,937 18.8% 4,032,039 8.8% 4,153,171 -0.9% 4,278,106 3.0% 812,055 865,358 6.5% 1,016,946 17.5% 1,047,454 3.0% 1,078,87.5 3.0% 184,734 321,434 74.0% 276,360 -14.0% 281,997 -5.5% 287,52-5 2.0% 11,840 10,319 -12.8% - -100.0% - o.o% - 0.0% 357,082 294,894 -17.4% 374,933 27.1% 389,826 2.9% 405,419 4.0% 1,365,722 1,491,995 2,383,591 2,681,054 297,359 365,043 671,575 609,946 3,352,525 1,552,547 17,107 70,556 10,102 512,330 2,162,642 3,124,047 27,266 2,639,497 14,282 2,040,592 7,845,774 3,655,953 9.1 1,829,386 17.8 21,793 27.4 173,020 145.2 2,590,073 19. 3,425,559 9. 48,948 79. 2,866,597 S. - -100. 2,066,233 1. 8,407,337 7. 1,668,139 11. 2,1574,029 -0. 332,246 -5. 650,755 6. 3,657,030 0. 1,647,317 -10. 23,425 7. 51,800 -70. 611,250 8. 2,333,902 -9. 3,415,565 -o. 57,692 17. 2,888,212 0. 0. 2,067,722 0. 8,429,191 0. 1,719,168 1.3 % 2,754,250 3.0% 338,891 -33.2% 576,795 2.9% 3,769,926 -1.9% 1,696,735 3.0% 24,129 3.0% 52,835 -49.4% o.0% 535,710 2.5% 2,409,411 0.7% 3,519,032 1.1% 59,423 3.0% 2,945,976 -9.2% --100.0% 2,150,431 2.5% 9,673,962 -3.5% 1,771,822 3.1% 2,836,877 3.0% 345,669 2.0% 703,857 4.0% 3,886,443 3.1% 1,747,639 3.0% 24,952 3.0% 53,893 2.0% 0.0% 661,139 4.0% 2,487,522 3.2% 3,623,573 3.0% 61,205 3.0% 3,004,896 2.0% - 0.0% 2,236,449 4.0% 8,9215,122 2.9% 1,242,135 3.0% - 0.0% 957,951 2.0% 382,320 4.0% 2,592,307 2.9% 2,527,424 3.0% 101,791 3.0% 853,545 2.0% 924,115 4.0% 4,406,965 3.0% 1,111, 244 3.0% 293,275 2.0% - 0.0% 421,536 4.0% 1,826,156 3.1% 2,921,984 3.0% 352,582 2.0% 732,011 4.0% 4,006,ST7 3.1% 1,800,067 3.0% 25,597 3.0% 54,971 2.0% o.0% 687,584 4.0% 2,568,220 3.2% 3,732,280 3.0°% 63,042 3.0% 3,064,994 2.0°% - 0.0% 2,325,906 4.0°% 9,186, 221 2.9% 29-30 % ojection Change 1,279,400 3.0% - o.o% '387,203 2.0% 357,513 4.0% 2,664,221 2.9% 2,603,247 3.0% 104,834 3.0% 870,713 2.0% 561,080 4.0% 4,539,879 3.0% 1,144,582 3.0% 299,141 2.0% - 0.0% 438,502 4.0% 1,892,224 3.1% 3,0013,543 3.0% 359,534 2.0% 761,2131 4.0% 4,130,S68 3.1% 1,854,070 3.0% 26,355 3.0% 56,070 2.0% 0.0% 715,099 4.0% 2,651,593 3.2% 3,944,249 3.0% 64,933 3.0% 3,126,294 2.0% - 0.0% 2,418,542 4.0% 9,454,417 2.9% 60 1 Annual Operating Budget CIPAdmin: Salaries O&M Capital Outlay ISF Parks Maint Salaries Project Salaries O&M Capital Outlay ISF Police: Salaries Project Salaries Contract O&M -contract Capital Outlay ISF O&M Fire Capital outlay Salaries Project Salaries Contract Fire Suppression Contract Fire Prevention O&M ISF Animal Control Animal Control - Debt Service City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND 23-24 24-25 % 25-26 % 26-27 % 27-28 % 28-29 % 29-30 % Actual Revised Change Proposed Change Projedion Change Projection Change Projection Change Projection Change 2,859,0133 2,891,143 0.8% 3,104,522 7.8% 3,1137,751 3.0% 3,293,653 3.096 3,392,504 3.0% 3,494,279 3.096 30,030 65,700 118.8% 47,500 -27.7% 49,450 -25.3% 49,419 2.01A 50,407 2.0% 51,416 2.0% 5,234 33,395 538.0% - -100.0% 562,290 553,455 -1.6% 615,213 11.3% 540,862 2.9% 666,496 4.0% 693,156 4.0% 720,882 4.0% 3,456,647 3,533,694 2.2% 3,768,335 6.6% 3,887,072 2.5% 4,009,608 3.2% 4,136,067 3.2% 4,256,577 3.2% 1,502,294 1,574,316 4.8% 1,500,755 -4.7% 1,545,779 3.0% 1,592,151 3.0% 1,539,915 3.0% 1,639,113 3.0% 55,005 111,471 71.5% 122,105 5.5% 125,758 3.0% 129,541 3.01A 133,427 3.0% 137,430 3.0% 3,799,382 4,140,300 9.0% 4,162,554 0.5% 4,245,805 1.1% 4,330,721 2.0% 4,417,336 2.0% 4,505,582 2.0% 84,439 55,451 14.2% - -100.0% 0.0% 0.01A 0.0% 0.0% 313,065 443,104 41.5% 581,528 53.8% 708,893 1.9% 737,249 4.0% 766,739 4.0% 797,408 4.0% 5,764,177 6,3155,642 10.4% 6,467,042 1.5% 6,626,244 1.6% 6,789,662 2.5% 6,957,417 2.5% 7,129,634 2.5% 36,503 - -100.0% - 0.0% - 0.0% - o.o% - 0.0% 0.0% 59,533 60,504 1.6% 27,835 -54.0% - -100.0% - 0.0°% - o.o% 0.0% 38,619,319 41,147,444 6.5% 45,676,061 11.C% 49,446,625 6.1% 50,993,956 5.1% 53,453,654 5.0% 56,161,835 5.01A 698,115 757,106 8.4% 779,810 3.0% 903,262 3.0% 827,488 3.0°% 852,515 3.0% 979,369 3.0% 114,SM - -100.0% 192,00o 0.C% 120,000 -37.5% 120,000 0.0% 120,000 0.0% 120,000 0.01A 412,473 608,372 47.5% 590,1335 11.9% 714,993 1.9% 750,732 5.01A 799,269 5.0% 827,682 5.0% 944,575 1,057,027 25.1% 1,117,750 5.7% 1,140,115 -0.7% 1,162,918 2.0% 1,186,176 2.0% 1,203,899 2.01A 40,785,303 43,630,453 7.0% 48,474,402 11.1% 51,224,985 5.5% 53,755,094 4.9% 56,410,613 4.9% 59,197,787 4.9% 45,966 70,000 49.0% - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% 597,232 701,334 17.4% 794,996 13.4% 818,846 3.0% 843,411 MIA 868,714 3.0% 894,775 3.0% - 40,000 0.0% 20,060 -50.0% 20,600 3.0% 21,218 3.01A 21,855 3.0% 22,510 3.0% 7,795,429 7,602,339 -2.4% 10,000,234 31.5% 10,874,731 8.7% 11,726,189 7.9% 12,624,997 7.7% 13,773,284 9.1°% 1,103,170 1,190,333 7.9% 1,555,818 30.7% 1,533,609 5.0% 1,715,289 5.0°% 1,801,054 5.0% 1,891,107 5.0% 569,3613 756,191 32.8% 735,0132 -2.81A 749,794 -3.3% 754,790 2.01A 780,096 2.0% 795,687 2.0% 754,060 723,364 -4.1% 916,873 12.91ya 849,549 2.3% 993,530 4.0°% 919,971 4.0% 955,625 4.0% 10,856,217 11,083,560 2.1% 13,923,013 25.6% 14,947,128 6.9% SS,954,427 5.7% 17,015,476 6.7% 18,39.2,999 7.7% 356,940 354,366 -0.7% 637,769 80.C% 644,147 77.7% 650,599 1.0% 657,094 1.0% 663,665 1.01A 97,216 87,216 0.0% 140,051 60.6% 141,452 62.2% 142,965 1.0% 144,295 1.0% 145,739 1.o% 444,156 441,SS2 -0.6% 777,820 76.1% 78S,SM 74.7% 793,454 1.0% 801,389 1.0% 909,403 1.0% Annual Operating Budget 1 61 City of Temecula Fiscal Year 2025-26 l Annual Operating Budget FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND 23-24 24-25 % 25-26 % 26-27 % 27-29 % 28-29 % 29-30 95 Actual Revised Change Proposed Change Projection Change Projection Change Projection Change Projection Change Non -Departmental: Retiree Medical Contribution 598,733 298,000 -70.2% 289,000 -3.09% 2&9,000 0.0% 289,000 0.0% 299,000 0.0% 289,000 0.0% PERs Replacement Benefit &5,822 90,000 4.9% 91,8Qo 2.0% 93,635 2.0% 95,509 2.0% 97,419 2.0% 99,357 2.0% Projected Pension UAL Savings (2,710,437) 0.0% (3,477,724) 28.3 % (3,513,979) 3.5% (3,700,651) 2.4% (3,7813,832) 2.4% (3,881,46&) 2.4% Capital Project O&M Costs - 0.0% - 0.0% 500,000 0.0% 515,000 3.0% 530,450 3.0% 545,354 3.0% Staffing Continuity Reserve 534,100 6.0% 200,000 -66.3% 200,000 -50.0% 200,000 0.0% 200,000 0.0% 200,000 0.0% Prop. Tax Admin 56,325 90,000 59.9% 93,00 4.0% 97,344 4.0% 101,238 4.0% 105,297 4.0% 1013,4139 4.0% 1,140,991 (1,638,3371 -243.5% (2,903,3241 71L1% (2,433,9991 -6.5`/0 (2,499,9451 2.7% (2,567,6761 2.7% (2,637,2381 2.7% Su m m a ry by Category SalariesfBenefits Pension UALSavings Project Salaries O&M I5F Capital outlay Fire Contract Prevention Police Contract Non -Departmental 22,290,919 24,559,023F' 10.2% 25,459,738P- 3.7% 25,233,830P- 1.1% 27,020,845P' 3.0% 27,831,470p' 3.0% 29,556,414 3.0% 0 -2,710,437 -3,477,724 28.3% -3,613,979 -3,700,591 -3,789,832 -3,891,458 235,705 414,248 P' 75.7% 543,579 P- 31.2% 531,320 P -2.3% 547,259 P' 3.0% 563,677 P' 3.0% 590,587 3.0% 12,075,585 14,994,155 P' 24.2% 14,981,039 P -0.1% 15,270,581 P -3.6% 15,565,835 P' 1.9% 15,855,918 P' 1.9% 15,173,943 1.9% 9,232,052 9,518,305 Pr 3.1% 10,322,793 P 8.5% 10,742,504 P 2.5% 11,179,354 P' 4.1% 11,534,035 P' 4.1% 12,107,279 4.1% 315,458 255,255 -19.3% 197,000 -22.9% 120,000 F' -71.3% 120,000 P' 0.0% 120,000 P' 0.0% 120,000 0.6% 8,888,599 9,792,671 -1.1% 11,555,052 31.4% 12,509,340 F' 8.2% 13,441,479 P' 7.5% 14,425,951 P' 7.3% 15,554,391 8.6% 39,317,435 41,904,550 5.5% 45,455,971 10.9% 49,249,897 F' 5.0% 51,721,444 P' 5.0% 54,315,158 P' 5.0% 57,040,205 5.0% 1,140,881 1,072,100 -5.0% 574,400 -37.1% 1,179,980 34.9% 1,200,746 P' 1.8% 1,222,156 P' 1.8% 1,244,230 1.8% 53,497,744 98,799,922 5.7% 106,722,937 8.0% 112,222,462 3.3% 117,095,271 4.3% 122,190,544 4.4% 127,715,581 4.5% 62 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND 2023-24 2024-25 2025-25 202&-27 2D27-28 21328-29 2629-34 Actuals Revised Praposed Projection Projection Projection Projection Revenue Est' m ated An n u a I Growth Rate -1_7% -0-9% 2.5% 2.5% 3.Gf% 35% 3.5% Sales Tax 37,673,402 37,365,950 38,30D,099 39,257,501 40,435,323 41,950,566 43,315,336 Investment Interest 2,325,p92 1,604,911 1,728,370 1,771,579 1,824,727 1,888,592 1,954,593 Total Revenue 39,998,494 38,970,861 40,028,469 41,029,1W 42,260,055 43,739,158 45,270,028 % Gra%,,+h over Prior Year Transfers Out - Operating Expenditures Public Safety Police Staffing Fire Staffing (Station 35) Public Safety Subsidy Fire - ISF (4ln5pect. Vehicles & Ladder Truck) IT- Citywide Security Cameras O&M Asset ManQgement Reserve Fund Contribution - Street Maintenance Fund (103) Reserve Fund Contribution - Facilities Replacement Fund (350) C�,annn r gnnfirnc 2.3% -2.696_. 2.7% 2.5% 3.07s 3.5% 3.5% 4,201,550 4,757,194 5,209,128 5,521,575 5,797,759 5,751,539 6,039,178 769,869 977,292 1,075,021 1,128,772 1,185,211 1,244,471 1,306,595 7,000,000 9,000,000 14,000,0pp 15,000,000 10,000,000 170,390 17D,39G 170,390 170,390 170,390 170,390 170,390 300,000 3UG,000 3DD,OOD 300,OM 300,000 300,D90 300,000 2,040,Dp0 2,000,000 1,006,004 1,0D0,040 1,D0p,ow 1,00%ouu 1,0w,000 2,55D,OOD 2,5UD,000 1,250,OD0 1,250,000 1,250,OW 1,250,DD0 1,250,004 TCSV Operations (subsidy) 13,254,402 1.5,854,726 15,480,467 17,389,215 18,151,D39 18,945,152 19,771,955 Library (subsidy) 818,085 1,127,563 1,384,016 1,425,536 1,468,303 1,512,352 1,557,722 Public Works - Enhanced Custodial Svcs 99,397 91,049 93,790 96,594 99,491 102,476 105,551 Total Operating Expenditures 24,152,592 27,788,214 33,962,902 37,291,182 43,422,192 45,276,440 41,501,391 %Grawthover Prior Year =6.3% 15.1% 3.6% 9.9% _6.5% 4.3% -8.3% Excess of Revenues overl(Under) Operating Expenditures 15,845,902 11,192,647 6,%5,666 3,747,998 (1,162,135) (1,537,282) 3,76B,538 Annual Operating Budget 1 63 City of Temecula Fiscal Year 2025-26 l Annual Operating Budget FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND 2023-24 2024-25 2025-25 2026-27 2027-28 2028-29 2429-30 Actuals Revised Prapused Projection Frojedian Projection Projection Transfers Out- Capital Improvement Program ..................................................................................................................................................................................................................................................................... . 612 ADA Transition Plan Implementation 83,093 324,227 79,660 79,560 78,550 78,560 78,560 ..................................................................................................................................................................................................................................................................... . 790 Auto Mall Wayfinding Signs 200,000 535,218 ..................................................................................................................................................................................................................................................................... . 768 Bike Lane and Trail Program - Great Oak Trail Lighting 352,908 ...................................................................................................................................................................................................................................................................... .......... 793 Bike Land and Trail Program - Ronald Reagan Sports Park Trails 12,815 240,679 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 720 Bike Lane and Trail Program - Temecula Creek South Side Trail 95,276 248,287 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW23-10 Bike Lane upgrades- Citywide 50 49,900 524 CherryStreet Extension and Murrieta Creek Law -Flow Crossing 90,030 77,641 7713 City FacilitySecurityImprovements 150,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 711 Citywide Security Cameras 145,50C 454,494 722 Citywide Drainage Master Plan 221,353 325,353 43,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 724 Citywide Financial System upgrade 113,124 ..................................................................................................................................................................................................................................................................... . bss Citywide StreetlightAcquisition LED Conversion {32,553} - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 730 Community Recreation Center Renovation 593 774,908 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2o5 CRC Splashpad and Shade Structures 1,405,206 894,508 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 521 Diaz Road Expansion (Rancho Cal to Cherry St) 500,931 207 Dag Park Renovation 393,465 89,514 --------------------------------------------------------------------------------------------------------------------------------------------------------------- PW23-20 Empire Creek Irprovements 923,949 789 Fiber Optic Communication Systems- Citywide 30,732 97,950 ..................................................................................................................................................................................................................................................................... . 6s7 Fire Station 73 - Gym/Garage 156,239 193,599 4,300,300 ..................................................................................................................................................................................................................................................................... . 667 Fire Station M Renovations 43,111 681,965 227,245 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 670 Flashing Beacons and Speed Advisory Signs 21,446 42,554 ..................................................................................................................................................................................................................................................................... . 725 French Valley Parkway/ F15 Interchange Improvements -Phase II 453,762 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 728 French Valley Parkway/ F15 Interchange Improvements -Phase III 16,184 525,633 mo,000 200,000 200,000 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 690 1-15/SR73South Interchange Enhanced Landscaping 68,539 620,306 PWBV-24 1-15 Corridor Branding and Visioning Improvements 200,000 755 Local Roadway Safety Plan - 35,000 Pw23-i3 Lang Canyon Creek Park Restrooms 15,427 1,2-a2,503 190,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6s2 Margarita Recreation Center 3,406,259 415,476 .................................................................................................................................................................................................................................................................... . 64 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND 2023-24 2024-25 2025-25 202&-27 2027-28 2028-29 2029-34 Aetuals Revised Proposed Projection Projection Projection Projection TransfersOu#- CapitalImprovementPrUgram----------------------------------............................................------------------------------------------------------------------......=='09M--------------------------- ??1 P,Flary Phillips Senior Center Emergency Generator 4,896 - 7s2 Mary Phillips Senior Center Enhancement and Renovation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 703,397 - - - - - - - - - - - - - - - - - - - - - - - - - - 145,004) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 796 Mary Phillips Senior tenter Outdoor Recreation Area 240,783 704 Medians&TrafficCalmininglmpro-vements-Citywide 580,000 Gas Murrieta Creek Bridge at Overland ..................................................................................................................................................................................................................................................................... 120,555 879,334 . 735 Murrieta Creek Improvements 1,385,867 7s5 Nicolas Road Multi -Use Trail Extension - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 150,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pw2a-ox North General Kearny Street Improvements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,795 - - - - - - - - - - - - - - - - - - - - - - - - - - 372,552 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 694 OldTownParkingStructure 405,000 730 Old Town Security Camera and Sound System Upgrade ..................................................................................................................................................................................................................................................................... 1,573 89,665 . 155 Park Restrooms Expansion, Renovations and ADA Improvements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,032,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 130 Parks Improvement Program 672,218 399,792 Pavement Rehabilitation Program -Citywide ..................................................................................................................................................................................................................................................................... - 11001 1000. Pw23-09 Pavement Management Program update - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 85,02-0 - - - - - - - - - - - - - - - - - - - - - - 100,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW23-11 PedestrianRampIJpgrades- Citywide 50 49,950 7s7 Pickleball Courts - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 400e955 - - - - - - - - - - - - - - - - - - - - - - - - - - 1,624,923 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 120 Playground Equipment Enhancement and Safety Surfacing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,337,924 - - - - - - - - - - - - - - - - - - - - - - - - - - 400,000 - - - - - - - - - - - - - - - - - - - - - - 939,775 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 726 Rainbo-w Canyon Ro-ad Pavement Rehabilitation 350,000 791 Rancho California Road Medians - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5,234 - - - - - - - - - - - - - - - - - - - - - - - - - - 143,766 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2o6 RCWD Recycled Wate r Acce I e rate d Retrofit Program ..................................................................................................................................................................................................................................................................... 33,001 . 223 RRSP Ho-ckey Rink 105,733 1,853,332 224 RRSP P u m p Tra ck Sa d e Stru ctu re - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 79,552 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 114 RRSP Restroom Expansion and Renovation 145,914 222 RRSP Skate Park i31,690 3,858,430 719,135 732 Santa Gertrudis Creek Phase II - Margarita Under -Crossing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3B,917 - - - - - - - - - - - - - - - - - - - - - - - - - - 1,758,376 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 708 Sidewalks -Citywide 38,389 342,653 766 Sidewalks -Old Town Improvement Project - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 179,977 - - - - - - - - - - - - - - - - - - - - - - - - - - (299,719) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - P+AnW-02 Sidewalks- Pauba Road - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 55,315 - - - - - - - - - - - - - - - - - - - - - - - - - - 52%2-08 - - - - - - - - - - - - - - - - - - - - - - 100,0W - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW23-03 Sidewalks -Third Street 373 PW22-16 Sixth Street Improvements ..................................................................................................................................................................................................................................................................... 147,486 834,940 . 141 Sports Court Resurfacing .................... . . ..................................................................................................... 114,257.......... 200,0()0104,000 ..................................9o4.............................._ Annual Operating Budget 1 65 FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND 2023-24 2324-25 2025-25 2026-27 2027-28 Actuals Revised Proposed Projection Projection City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2028-29 2029-30 Projectifln Projection Transfers Out- Capita llmpro►relrrentProgiam ....................... ------------ ------ ------------------------ = 113 Sports Field Light-ing-LED Conversion 1,354,583 P%'VSN23 Storm Drain Pipe Lining 12,186 508,354 532,550 1,870,050 1,870,050 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Temecula Creek Fencing 31g,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - NEVY Temecula Duck Pond Spillway Project 1,296 6s3 Traffic Signal Equipment Enhancement Program - Citywide 367,540 1,271,840 260,000 260,900 260,000 260,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6a2 Traffic Signal Installation —Citywide 558,758 TrafficSignal-Pedestrian Signal Equipment Upgrade Phase 2- PW23-12 Citywide 50 79,720 ass TrafficSign aI - Promenade M a I I Ring Road 156,035 FIw23-13 Traffic Signal - Safety Lights & Sign al Communications Upgrade - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 220,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 610 TrafficSign aI System Upgrade 205,000 - Traffic Signal Fiber Optic Extension - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 265,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 208,150 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW22-12 Uptown Temecula Sports Park - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,249 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,369,751 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW23-06 Vail Ranch Park Restroorns 25,292 1,297,636 70,000 Total CIP Project Expenditures 11,388,857 34,283,385 SIW91109 1,686,535 2,508,710 438,660 2,048,710 Total Expenditures/Transfers out 35,541,559 52,07i 599 42,771,911 38,967,717 45,930,902 45,715,100 43,550,101 Excess of Revenues Overl(Under) Total Expenditures 4,456,935 (23,100,738� j2,743,443) 2,061,463 (3,670,946) (1,575,942) 1,719,329 Fund Balance, Beginningo€Yea r 45,992,338 50,449,273 27,348,536 24,605,093 26,666,556 22,995,710 21,019,768 Fund Balance, End ofYear 50,449,27324,605,093 666 i 22,995,710 21,019,768*G 66 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget FIVE-YEAR FINANCIAL PROJECTION - TEMECULA COMMUNITY SERVICES DISTRICT FUND FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 FY29.3D Adjusted % Proposed °% Projected % Projected % Projected % Projected % Actuals Budget Change Budget Change Budget Change Budget Change Budget Change Budget Change TCSD Program Revenues 2,779,695 2,836,576 2.0% 2,860,431 2.1% 2,899,036 1.D% 2,917,926 1.0% 2,947,105 1.0°% 2,976,576 1.0% Measure C Revenues 1,908,085 1,926,088 D.9% 1,935,718 0.5% 1,955,076 1.0% 1,974,626 1.0% 1,994,373 1.0% 2,014,316 1.0% Measure S Contribution 13,254,402 15,864,726 19.7% 16,480,467 1.9% 17,388,215 5.5% 18,151,038 4.4% 18,945,152 4.4% 19,771,855 4.4% TatalRevenues 17,942,182 20,627,390 15.D% 21,276,617 1.9% 22,232,326 4.5% 23,D43,590 3.6% 23,886,630 3.7% 24,762,748 3.7% % from Measure 5 74% 77% 77% 79% 75% 713% 90% Expenditures by Division TCSD Operations 4,834,765 4,924,995 1.9% 5,051,521 4.5% 5,274,625 4.4% 5,507,918 4.4% 5,751,873 4.4% 6,006,990 4.4% TCSD Maintenance 1,775,748 1,950,588 9.8°% 2,008,203 3.8% 2,067,793 3.0% 2,129,353 3.0% 2,292,951 3.0% 2,258,662 3.0% Senior & Inclusive Services 932,749 1,165,743 25.D% 1,703,294 44.2% 1,769,361 3.8% 1,835,970 3.9% 1,906,221 3.8% 1,979,218 3.8% Community Rec Center Operations 1,290,168 1,371,032 6.3% 1,243,832 -9.0% 1,291,363 3.9% 1,340,752 3.8°% 1,392,070 3.9% 1,445,394 3.81A Special Events 1,564,986 1,234,280 -21.1% 1,374,415 13.6% 1,413,451 2.8% 1,453,729 2.8% 1,495,293 2.9% 1,539,189 2.9% TCC Operations 369,249 485,984 32.0% 242,527 -50.1% 252,146 4.01% 262,249 4.0% 272,550 4.0% 283,365 4.01A Museum & Cultural Arts 852,527 914,525 7.3% 834,747 -13.4% 866,127 3.8% 899,702 3.8% 932,549 3.8% 967,707 3.8% Aquatics Operations 1,627,795 2,649,317 62.7% 2,589,635 -2.5% 2,689,688 3.9% 2,793,672 3.9% 2,901,743 3.9% 3,024,D64 3.9% Sports 676,968 1,032,477 52.5% 996,706 -4.1% 1,024,023 3.9% 1,062,769 3.9% 1,103,031 3.9% 1,144,858 3.8% Community Theater Operations 1,591,395 1,637,185 2.9% 1,683,992 3.7% 1,745,350 3.6% 1,809,D43 3.6% 1,875,161 3.7% 1,943,799 3.7% Contract Classes 1,171,168 1,668,635 42.5% 1,849,925 11.0% 2,049,069 10.8% 2,110,168 3.0% 2,173,294 3.0% 2,238,520 3.0% Homeless Outreach & Prevention 1,24D,845 1,661,154 33.9% 1,742,791 18.2% 1,790,350 2.7% 1,839,368 2.7% 1,889,895 2.7% 1,941,982 2.8% Workforce Development 307,622 421,810 37.1% - -100.0% - 0.0% - 0.0°% - 0.0% - 0.0% Total Expenditures 18,234,885 21,116,715 14.6% 21,311,5as 2.0% 22,232,326 4.3% 23,043,591 3.6% 23,836,630 3.7% 24,762,748 3.7% %Growth in Expenditures 13.1% Excess of Revenues Over Expenditures (292,703) (489,325) (34,971) - - - - Beginning Fund Balance 916,999 624,296 134.971 10D,OOD 100,060 1DD,OOO 1DO,DDD Ending Fund Balance 624,296 134,971 100,000 100,000 100,000 100,000 100,000 Annual Operating Budget 1 67 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 68 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget FUND BALANCE SUMMARY - ALL FUNDS Beginning Revenues/ Expenditures/ Beginning Revenues/ Expenditures/ Ending Balance Transfers In Transfers Out Balance Transfers In Transfers Out Balance 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 GENERAL FUNDS 001: GENERAL FUND 40,909,314 105,934,188 109,808,117 37,035,386 113,978,529 115,490,670 35,523,245 002: MEASURES FUND 50,449,274 38,970,861 62,071,599 27,348,536 40,028,469 42,771,911 24,605,094 006: FIRE FACILITY ACQUISITION FUND 4,701,785 156,221 - 4,858,006 I 173,287 - 5,031,293 110: COMMUNITY REINVESTMENT PROGRAM 9,468,092 - 8,410,972 1,057,120 - - 1,057,120 TOTAL GENERAL FUNDS 105,528,465 145,061,271 180,290,687 70,299,049 154,180,286 158,262,581 66,216,754 SPECIAL REVENUE FUNDS 100: GAS TAX FUND - 3,129,775 3,129,775 (0) 3,143,671 3,143,670 0 102: ROAD MAINTENANCE REHABILITATION ACCOUNT 3,808,926 2,907,946 6,098,426 618,446 3,037,266 2,827,154 828,559 (RMRA) FUND 103: STREET MAINTENANCE FUND 6,166,190 2,234,728 2,937,307 5,463,611 1,227,222 1,927,477 4,763,355 105: NPDES IN LIEU FEES FUND 631,753 20,162 385,850 266,065 19,603 114,150 171,518 106: UPTOWN TEMECULA NEW STREETS IN -LIEU FEES 1,391,118 45,142 500,857 935,402 48,440 - 983,842 120: DEVELOPMENT IMPACT FEES FUND 15,864,154 2,741,011 2,215,000 16,390,165 8,073,996 4,226,610 20,237,550 125: PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 1,033,678 212,523 175,000 1,071,201 215,436 25,000 1,261,637 140: COMMUNITY DEV BLOCK GRANT FUND (396,892) 647,215 246,160 4,163 612,781 616,944 (0) 145: TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND 634,403 20,552 550,852 104,103 22,054 - 126,157 150: AB 2766 MOTOR VEHICLE SUBVENTION FUND 439,743 165,073 582,275 22,541 166,694 63,200 126,035 160: SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND - 283,129 281,564 1,565 283,502 285,067 0 165: AFFORDABLE HOUSING FUND 12,171,616 1,167,925 5,614,187 7,725,354 488,091 590,828 7,622,617 170: MEASURE A FUND 8,367,804 4,567,687 10,174,612 2,760,879 4,242,301 6,027,160 976,020 198: PUBLIC ART FUND 280,483 12,636 113,226 179,893 11,641 - 191,534 TOTAL SPECIAL REVENUE FUNDS 50,392,975 18,155,502 33,005,090 35,543,388 21,592,697 19,847,260 37,288,825 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) 190: TEMECULA COMMUNITY SERVICES DISTRICT FUND 624,497 20,627,390 21,116,715 135,172 21,276,617 21,311,588 100,200 191: TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT 1,324,223 243,442 - 1,567,665 47,370 20,000 1,595,035 FUND 192: TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 523,266 673,706 684,000 512,971 673,929 726,938 459,962 194: TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 945,198 10,772,785 11,101,603 616,380 10,774,926 11,268,756 122,550 195: TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 40,123 8,137 5,425 42,835 6,943 10,434 39,344 196: TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 372,780 273,452 320,001 326,232 277,341 318,076 285,497 197: TEMECULA LIBRARY FUND 255,327 1,194,848 1,334,578 115,598 1,429,930 1,445,528 100,000 501: SERVICE LEVEL"C"ZONE 1 SADDLEWOOD FUND 24,456 39,236 37,766 25,926 38,573 43,266 21,233 502: SERVICE LEVEL"C"ZONE 2 WINCHESTER CREEK FUND 138,874 51,276 40,646 149,504 47,188 61,547 135,145 503: SERVICE LEVEL"C"ZONE 3 RANCHO HIGHLANDS FUND 74,496 51,703 46,914 79,285 49,542 52,703 76,124 504: SERVICE LEVEL"C"ZONE 4 THE VINEYARDS FUND 7,497 6,766 8,296 5,966 6,577 7,796 4,748 505: SERVICE LEVEL"C"ZONE 5 SIGNET SERIES FUND 38,157 41,264 37,326 42,094 40,178 39,195 43,078 506: SERVICE LEVEL"C"ZONE 6 WOODCREST COUNTRY FUND 52,261 34,704 31,634 55,332 33,988 31,919 57,401 507: SERVICE LEVEL"C"ZONE 7 RIDGEVIEW FUND 17,574 16,349 15,224 18,698 15,845 15,380 19,163 508: SERVICE LEVEL"C"ZONE 8 VILLAGE GROVE FUND 133,220 144,787 137,214 140,793 140,940 136,905 144,828 509: SERVICE LEVEL"C"ZONE 9 RANCHO SOLANA FUND 29,567 7,005 5,143 31,429 6,123 5,172 32,380 510: SERVICE LEVEL"C"ZONE 10 MARTINIQUE FUND 17,347 10,784 9,477 18,654 10,283 9,977 18,960 511: SERVICE LEVEL"C"ZONE 11 MEADOWVIEW FUND 4,499 2,720 2,495 41724 2,591 2,495 4,819 512: SERVICE LEVEL"C"ZONE 12 VINTAGE HILLS FUND 99,290 102,166 95,603 105,8531 99,230 97,755 107,329 Annual Operating Budget 69 City of Temecula Fiscal Year 2025-26 Annual Operating Budget FUND BALANCE SUMMARY - ALL FUNDS Beginning Revenues/ Expenditures/ Beginning Revenues/ Expenditures/ Ending Balance Transfers In Transfers Out Balance Transfers In Transfers Out Balance 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 513: SERVICE LEVEL"C"ZONE 13 PRESLEY DEVELOP FUND 514: SERVICE LEVEL"C"ZONE 14 MORRISON HOMES FUND 515: SERVICE LEVEL"C"ZONE 15 BARCLAY ESTATES FUND 516: SERVICE LEVEL"C"ZONE 16 TRADEWINDS FUND 517: SERVICE LEVEL"C"ZONE 17 MONTE VISTA FUND 518: SERVICE LEVEL"C"ZONE 18 TEMEKU HILLS FUND 519: SERVICE LEVEL"C"ZONE 19 CHANTEMAR FUND 520: SERVICE LEVEL"C"ZONE 20 CROWNE HILL FUND 521: SERVICE LEVEL"C"ZONE 21 VAIL RANCH FUND 522: SERVICE LEVEL"C"ZONE 22 SUTTON PLACE FUND 523: SERVICE LEVEL"C"ZONE 23 PHEASENT RUN 524: SERVICE LEVEL"C"ZONE 24 HARVESTON FUND 525: SERVICE LEVEL"C"ZONE 25 SERENA HILLS FUND 526: SERVICE LEVEL"C"ZONE 26 GALLERY TRADITION FUND 527: SERVICE LEVEL"C"ZONE 27 AVONDALE FUND 528: SERVICE LEVEL"C"ZONE 28 WOLF CREEK FUND 529: SERVICE LEVEL"C"ZONE 29 GALLERY PORTRAIT FUND 530: SERVICE LEVEL"C"ZONE 30 FUTURE ZONES FUND TOTALTCSD SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY (SARDA) 380: SARDA DEBT SERVICE FUND (34,291,959) 7,741,683 6,660,644 (33,210,921) TOTAL SARDA (34,291,959) 7,741,683 6,660,644 (33,210,921) INTERNAL SERVICE FUNDS 300: INSURANCE FUND 1,189,713 4,325,456 305: WORKERS' COMPENSATION FUND 1,047,326 1,022,410 310: VEHICLES AND EQUIPMENT FUND 5,405,642 616,327 320: INFORMATION TECHNOLOGY FUND 2,390,214 6,908,584 325: TECHNOLOGY REPLACEMENT FUND 3,106,290 2,197,366 330: SUPPORT SERVICES FUND 145 430,405 335: SUPPORT SERVICES REPLACEMENT FUND 385,998 40,088 340: FACILITIES FUND 606,326 1,763,780 350: FACILITY REPLACEMENT FUND 2,644,255 3,313,164 TOTAL INTERNAL SERVICE FUNDS 16,775,908 20,617,579 CAPITAL IMPROVEMENT PROGRAM 210: CAPITAL IMPROVEMENT PROGRAM FUND 9,244,218 208,418,797 TOTAL CAPITAL IMPROVEMENT PROGRAM 9,244,218 208,418,797 39,511 36,504 33,895 42,120 35,385 34,330 43,175 14,970 15,616 14,770 15,816 15,195 14,240 16,771 17,209 10,861 9,571 18,499 10,359 10,122 18,736 96,615 43,742 37,152 103,204 40,859 44,512 99,552 3,315 2,317 2,561 3,071 2,221 4,288 1,004 97,285 99,712 89,405 107,592 96,987 92,905 111,675 94,821 60,102 58,752 96,171 57,369 59,701 93,839 313,229 197,165 178,056 332,339 188,033 180,145 340,226 223,299 241,244 229,693 234,850 234,762 235,285 234,328 13,835 5,270 4,479 14,626 4,864 7,305 12,185 33,484 10,527 8,506 35,506 9,539 8,591 36,454 74,307 164,558 162,156 76,709 163,138 161,755 78,093 93,216 49,786 44,535 98,467 47,061 55,800 89,728 3,093 2,343 2,170 3,266 2,253 2,170 - 3,348 12,745 9,834 9,212 13,367 9,476 10,212 12,631 264,428 248,097 277,268 235,258 240,733 239,305 236,686 - 12,186 5,674 3,974 13,886 5,443 4,005 15,324 36,062 1,177 - 37,239 1,263 - 38,503 6,166,262 35,507,049 36,196,213 5,477,097 36,143,057 36,770,101 4,850,053 7,146,023 7,090,641 (33,155,539) 7,146,023 7,090,641 (33,155,539) 3,490,169 2,025,000 3,853,042 3,800,317 2,077,725 564,429 1,505,306 630,384 657,169 1,478,521 279,050 5,742,918 I 631,670 799,527 5,575,061 8,473,534 825,263 7,253,314 7,227,781 850,797 1,197,577 4,106,079 440,721 516,158 4,030,642 407,894 22,656 388,148 387,827 22,976 13,600 412,485 43,610 72,200 383,895 2,314,743 55,363 1,682,948 1,645,947 92,364 2,804,671 3,152,748 1,483,305 1,087,338 3,548,715 19,545,668 17,847, 818 16,407,141 16,194, 264 18, 060, 695 207,707,379 9,955,636 24,210,360 26,594,817 7,571,179 207,707,379 9,955,636 24,210,360 26,594,817 7,571,179 Grand Total 153,815,868 435,501,881 483,405,681 105,912,067 259,679,563 264,759,664 100,831,966 70 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS Special TCSD TCSD Internal General Revenue/ Citywide Service Service Total Fund Debt Funds Operations Levels Funds SARDA Revenues Taxes and Franchises Property Tax 12,164,898 12,164,898 Sales Tax 47,340,358 47,340,358 Sales Tax Sharing Agreement (1,690,014) (1,690,014) Transactions And Use Tax 38,300,099 38,300,099 Franchise Fees 4,229,094 4,229,094 Transient Occupancy Tax 4,500,000 4,500,000 Special Tax (Measure C) 2,100,000 1,935,718 4,035,718 Gas Tax 5,979,858 5,979,858 Redevelopment Property Tax Fund Distribution 6,980,394 6,980,394 PEG Fees 179,000 179,000 Total Taxes and Franchises 106,944,434 6,158,858 1,935,718 6,980,394 122,019,405 Licenses, Permits and Service Charges Quimby Fees 1,066,460 1,066,460 Land Development 1,536,420 1,536,420 Police 103,335 103,335 Printing & Copies 10,792 10,792 Aquatics 271,966 271,966 Sports Leagues & Tournaments 222,693 222,693 Recycling Program 27,553 27,553 Development Fees 60,408 60,408 Public Art 1,850 1,850 Development Impact Fees 6,426,910 6,426,910 Business Licenses 286,526 286,526 Building 2,639,600 2,639,600 Planning 535,954 535,954 Fire 1,524,057 1,524,057 Contract Classes 1,200,000 1,200,000 Classes/Activities 72,927 72,927 Facility Rentals 366,954 366,954 Museum Admissions 97,335 97,335 Theater Admissions 297,000 297,000 Day Camps 116,721 116,721 Assessments 13,102, 768 13,102,768 Charges For Services 950 14,348,573 14,349,523 Total Licenses, Permits and Service Charges 6,687,250 7,495,220 2,656,388 13,130,321 14,348,573 44,317,751 Annual Operating Budget 1 71 City of Temecula Fiscal Year 2025-26 Annual Operating Budget DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS Special TCSD TCSD Internal General Revenue/ Citywide Service Service Total Fund Debt Funds Operations Levels Funds SARDA Revenues Fines and Forfeitures Fines & Forfeitures 467,835 11,378 479,213 Total Fines and Forfeitures 467,835 11,378 479,213 Use of Money and Property Lease/Rental Income 272,073 14,620 286,693 Other 92,416 92,416 Investment Interest 3,485,937 1,701,839 22,049 173,152 484,568 165,629 6,033,172 Total Use of Money and Property 3,850,426 1,701,839 36,669 173,152 484,568 165,629 6,412,281 Intergovernmental Revenues Property Tax In Lieu Of VLF 11,586,423 11,586,423 Vehicle License Fees 126,748 126,748 Grants 78,032 127,037 205,069 Community Development Block Grant 612,781 612,781 AB2766 Motor Vehicle Subvention 150,000 150,000 Agency Trust Contribution 250,000 250,000 SLESF Grant 280,000 280,000 Measure A 3,944,000 3,944,000 Total Intergovernmental Revenues 11,791,203 5,236,781 127,037 17,155,021 Reimbursements Capital Improvement Program 3,391,502 3,391,502 Pechanga IGA 473,557 473,557 Other Reimbursements 1,359,249 106,510 24,000 1,489,759 Total Reimbursements 5,224,308 106,510 24,000 5,354,818 Operating Transfers In Operating Transfers In 5,428,738 5,428,738 Contribution From Measure S 13,548,319 1,000,000 17,864,483 1,550,000 33,962,802 Total Operating Transfers In 18,977,057 1,000,000 17,864,483 1,550,000 39,391,540 Miscellaneous 64,485 95,401 6,000 165,886 Total Miscellaneous 64,485 95,401 6,000 165,886 Total Revenues and Other Sources 154,006,999 21,592,697 22,706,547 13,436,510 16,407,141 7,146,023 235,295,916 72 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS General Special TCSD TCSD Internal Fund/ Revenue/ Citywide Service Service Measure S Debt Funds Operations Levels Funds SARDA Taxes and Franchises 106,944,434 Licenses, Permits and Service Charges 6,687,250 Fines and Forfeitures 467,835 Use of Money and Property 3,850,426 Intergovernmental Revenues 11,791,203 Reimbursements 5,224,308 Operating Transfers In 18,977,057 Miscellaneous 64,485 Total Revenues and Other Sources Total Revenues less Interfund Transfers* * Interfund Transfers are eliminated at the Citywide level 6,158,858 1,935,718 6,980,394 7,495,220 2,656,388 13,130,321 14,348,573 11,378 1,701,839 36,669 173,152 484,568 165,629 5,236,781 127,037 106,510 24,000 1,000,000 17,864,483 1,550,000 95,401 6,000 Maior Revenue Sources Reimbursements Operating Transfers 2% In Miscellaneous 17% 0% Intergov Revi Use of Money and Property 3% Fines an Forfeitur 0% Licenses, Permits and Service Charges 19% 7 Total Revenues 122,019,405 44,317,751 479,213 6,412,281 17,155,021 5,354,818 39,391,540 165,886 axes and anchises 52 Annual Operating Budget 1 73 City of Temecula Fiscal Year 2025-26 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 Transient Occupancy Taxes are derived using average room rates, projected changes in room occupancy, special events, and feedback from Visit Temecula Valley. Taxes and Franchises — 52% 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 2.5% over the prior fiscal year to $47,340,358. 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 $38,300,099 which is a 2.5% increase over the prior year, consistent with projected growth in Sales Tax. Historically, Measure S receipts have averaged 80% of Sales Tax receipts. 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 4.4% to a total of $12,164,898 due to the steady housing market, which still shows signs of low inventory and increasing home values. 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 by 1.6% over the prior year, with a total of $4,500,000. 74 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget MAJOR REVENUE SOURCES Licenses, Permits and Service Charges —19% 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 2025-26 Licenses, Permits and Service Charges revenue is projected to be $44,317,751. 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 ($126,748); Property Tax in Lieu of Vehicle License Fees ($11,586,426); Public Safety, Recycling, and Community Development Block Grants ($1,247,850); and Measure A transportation revenue ($3,944,000). The estimated intergovernmental revenue is projected to be $17,155,021. Operating Transfers —17% of Total Revenue This category consists of operating transfers between funds. The estimated operating transfers for Fiscal Year 2025- 26 totals $39,391,540. Significant transfers from the Measure S Fund include $17,864,483 to TCSD Operations and $13,548,319 to the General Fund to support operations within these funds. Additionally, Measure S transfers include deposits into the City's Asset Management Funds in the amount of $2,250,000 to supplement the existing balances in these replacement funds. Other significant transfers include monies from the Gas Tax Fund to the General Fund in the amount of $3,143,671. 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. Supplemental Law Enforcement Services grant revenue of $285,067 is transferred to the General Fund to support law enforcement expenditures. Finally, a $2 million transfer from the City's Pension Fund is reflected in accordance with the Debt/Liability Paydown Strategy. Total Revenue Sources for Fiscal Year 2025-26, excluding Interfund Transfers, are projected to be $195,904,346 across all funds. Annual Operating Budget 1 75 CITY OF TEMECULA GENERAL FUND 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. 76 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 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 40% 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 2.5% over the prior year as the local economy is expected to grow at a modest pace. Fiscal Year 2025-26 General Fund Revenue - $113,978,529 Prop. Tax in Lieu of VLF 10% Property Ta) 11% Sales Tax 40 % Franchise Fees 4% TOT 4% Measure C 2% Licenses/Permits 6% !Measure S 12% Transfers In 5% Reimbursements ther 4% 2% Property Taxes are the second largest source of revenue for the General Fund and comprise11% 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 4.4% over the prior fiscal year to $12,164,898. This growth is based on an anticipated increase in assessed valuation of property within the City. Operating Transfers In from Measure S comprise 12% 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 transfer of $13,548,319 will fund the continued cost of eleven sworn Sheriff's Deputies to maintain the current officer -per -resident ratio of 1:1000. Additionally, Measure S funds the 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. Property Tax in Lieu of Vehicle License Fees comprises 10% of total General Fund revenue. This revenue source is allocated to cities based on overall City assessed property valuation. Property Tax in Lieu of Vehicle License Fee revenue is expected to increase by 4.2% over the prior fiscal year to $11,586,423. This change is based on an anticipated increase in assessed valuation of property within the City of Temecula. Annual Operating Budget 1 77 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GENERAL FUND REVENUES Licenses, Permits, and Charges for Services comprise 6% of total General Fund revenues and include Business License and Permit fees. This category is projected to increase by 13% over the prior year to $6,623,241, due to ongoing residential development projects within the City combined with the full implementation of the new User Fee Schedule. 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 decrease 7.4% from the prior year to $4,229,094, due to reductions in natural gas rates and the continued decline in cable subscribers. 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. TOT revenue is projected to increase slightly by 1.6% to $4,500,000. Operating Transfers In comprise 5% of total General Fund revenues. This category includes the operating transfer of Gas Tax revenue ($3,143,671), grant funds from the Supplemental Law Enforcement Services Fund ($285,067), and a transfer from the City's Pension Trust of $2,000,000 to support the Debt/Liability Paydown Strategy. Reimbursements comprises 4% of total General Fund revenue and consists of reimbursement revenue from the Capital Improvement Program for administration and funding received from the Pechanga Tribe for a dedicated Sheriff's Deputy. Special Tax (Measure C) comprises 2% of total General Fund revenues. This category is projected to increase by 9% over the prior year to $2,100,000, as new residential developments are assessed this parcel tax. 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 Revenue comprises 2% of total General Fund revenue and consists primarily of smaller miscellaneous revenue sources. 78 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE BY SOURCE 001- GENERAL FUND 2025-2026 % 2023-2024 2024-2025 Proposed Increase/ Increase/ Description Actuals Current Budget Budget (Decrease) Decrease Taxes and Franchises PROPERTY TAX 11,231,801 11,652,749 12,164,898 512,149 4.4% SALES TAX 46,566,619 46,185,715 47,340,358 1,154,643 2.5% SALES TAX SHARING AGREEMENT (1,556,194) (1,640,791) (1,690,014) (49,223) -3.0% FRANCHISE FEES 4,343,507 4,566,382 4,229,094 (337,288) -7.4% TRANSIENT OCCUPANCYTAX 4,998,676 4,428,313 4,500,000 71,687 1.6% SPECIAL TAX (MEASURE C) 1,908,085 1,926,088 2,100,000 173,912 9.0% Licenses, Permits and Service Charges LAND DEVELOPMENT 1,644,058 1,357,460 1,536,420 178,960 13.2% PARKS MAINTENANCE 20,252 1,399 - (1,399) -100.0% SHERIFF'S OFFICE 89,701 87,140 103,335 16,195 18.6% DEVELOPMENT FEES 68,659 67,548 60,408 (7,140) -10.6% BUSINESS LICENSES 283,406 280,908 286,526 5,618 2.0% BUILDING 2,959,875 2,391,800 2,639,600 247,800 10.4% PLANNING 571,434 535,954 535,954 - 0.0% FIRE 1,337,931 1,224,057 1,524,057 300,000 24.5% CHARGES FOR SERVICES 324 950 950 - 0.0% Fines and Forfeitures FINES & FORFEITURES 579,995 411,457 467,835 56,378 13.7% Use of Money and Property LEASE/RENTAL INCOME 264,422 245,941 272,073 26,132 10.6% OTHER 171,359 179,000 92,416 (86,584) -48.4% INVESTMENT INTEREST 2,549,544 1,324,449 1,757,567 433,118 32.7% Intergovernmental Revenues PROPERTY TAX IN LIEU OF VLF 10,532,198 11,078,042 11,586,423 508,381 4.6% VEHICLE LICENSE FEES 135,651 124,848 126,748 1,900 1.5% GRANTS 140,557 164,253 78,032 (86,221) -52.5% Reimbursements CAPITAL IMPROVEMENT PROGRAM 3,172,243 3,180,326 3,391,502 211,176 6.6% PECHANGA IGA 404,061 422,244 473,557 51,313 12.2% OTHER REIMBURSEMENTS 1,118,731 1,278,900 1,359,249 80,349 6.3% Operating Transfers In OPERATING TRANSFERS IN 10,392,823 8,411,339 5,428,738 (2,982,601) -35.5% CONTRIBUTION FROM MEASURES 5,230,205 5,995,925 13,548,319 7,552,394 126.0% Miscellaneous MISCELLANEOUS 29,802 51,792 64,485 12,693 24.5% Total Revenues and Other Sources 109,189,725 105,934,188 113,978,529 8,044,341 7.6% Annual Operating Budget 1 79 City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL 001- GENERAL FUND Fund 2023-2024 2024-2025 2025-2026 Increase/ %Increase/ 001 Description Actuals Current Budget Proposed Budget (Decrease) Decrease 161- PLANNING 609,014 585,404 585,404 - 0.0% 162 - BUILDING & SAFETY 2,910,993 2,300,000 2,547,800 247,800 10.8% 163 - LAND DEVELOPMENT 1,650,654 1,356,522 1,536,522 180,000 13.3% 164 - PUBLIC WORKS 2,300 850 350 (500) -58.8% 167 - PARKS MAINTENANCE 2,031,119 2,012,270 2,194,142 181,872 9.0% 170 - SHERIFF'S OFFICE 516,005 506,354 538,154 31,800 6.3% 171- FIRE 1,513,704 1,363,969 1,663,069 299,100 21.9% 199 - NON -DEPARTMENTAL 4008 RESIDUAL RPTTF DISTRIBUTION 236,401 250,000 253,600 3,600 1.4% 4010 PROPERTY TAX - SECURED 9,205,616 9,915,255 10,379,350 464,095 4.7% 4012 PROPERTY TAX - UNSECURED 458,231 516,313 536,966 20,653 4.0% 4013 SUPPLEMENTAL TAX -AB2345 467,395 263,925 274,482 10,557 4.0% 4016 PROPERTY TRANSFER TAX 797,057 637,000 650,000 13,000 2.0% 4018 FRANCHISE FEES 4,343,507 4,566,382 4,229,094 (337,288) -7.4% 4020 TRANSIENT OCCUPANCY TAX 4,998,676 4,428,313 4,500,000 71,687 1.6% 4024 SALES & USE TAX - STATE 46,566,619 46,185,715 47,340,358 1,154,643 2.5% 4025 GRANTS - 125,321 40,000 (85,321) -68.1% 4026 SALES TAX SHARING AGREEMENT (1,556,194) (1,640,791) (1,690,014) (49,223) -3.0% 4028 HOMEOWNER PROPERTY TAX RELIEF 67,102 70,256 70,500 244 0.3% 4043 PROPERTY TAX IN LIEU OF VLF 10,532,198 11,078,042 11,586,423 508,381 4.6% 4046 MOTOR VEHICLE IN LIEU -STATE 135,651 124,848 126,748 1,900 1.5% 4047 VEHICLE CODE FINES 327,102 182,518 233,676 51,158 28.0% 4056 BUSINESS LICENSE 283,406 280,908 286,526 5,618 2.0% 4057 PASSPORT PROCESSING - 20,000 20,000 - 0.0% 4060 MISCELLANEOUS NON-TAXABLE 126,206 125,000 28,082 (96,918) -77.5% 4061 RETURNED CHECK FEE 75 150 - (150)-100.0% 4062 RECOVERY OF PRIOR YEAR EXPENSE 11,950 3,000 1,500 (1,500) -50.0% 4064 RIGHT OF WAY ADVERTISING 1,050 2,142 2,185 43 2.0% 4065 INVESTMENT INTEREST 1,874,770 1,324,449 1,757,567 433,118 32.7% 4070 CASH OVER & SHORT (3,213) - - - 0.0% 4075 RENTAL INCOME 86,105 165,000 174,000 9,000 5.5% 4076 REIMBURSEMENTS 178,299 160,000 163,200 3,200 2.0% 4078 REIMBURSEMENT-PECHANGA IGA 404,061 422,244 473,557 51,313 12.2% 4084 REIMBURSEMENTS FROM CIP 3,172,243 3,180,326 3,391,502 211,176 6.6% 4094 LEASE INCOME 83,172 7,959 7,501 (458) -5.8% 4162 ELECTRIC VEHICLE CHARGING FEES 16,727 26,000 40,800 14,800 56.9% 80 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL 001- GENERAL FUND Fund 2023-2024 2024-2025 2025-2026 Increase/ %Increase/ 001 Description Actuals Current Budget Proposed Budget (Decrease) Decrease 4168 INTEREST INCOME - LEASES 9,853 - - 0.0% 4177 MSHCP ADMIN FEE 324 950 950 - 0.0% 4181 REIMBURSEMENT SERVICES CFD 635,475 885,330 961,879 76,549 8.6% 4300 STATE MANDATED COST 162,169 50,000 50,000 - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 677,956 - - 0.0% 4550 GAIN ON DISPOSAL OF ASSETS 6,269 15,000 15,000 - 0.0% 4941 AB1379 COLLECTION STATE $4 FEE 26,651 30,000 30,600 600 2.0% 6002 TRANSFER IN FROM MEASURES FUND 5,230,205 5,995,925 13,548,319 7,552,394 126.0% 6100 TRANSFER IN FROM GAS TAX FUND 3,075,185 3,129,775 3,143,671 13,896 0.4% 6160 TRANSFER IN FROM SUPPLEMENTAL 317,639 281,564 285,067 3,503 1.2% LAW ENFORCEMENT SERVICES FUND 6701 TRANSFER IN FROM PENSION RATE 7,000,000 5,000,000 2,000,000 60.0% STABILIZATION FUND (3,000,000) TOTAL GENERAL FUND 109,189,725 105,934,188 113,978,529 8,044,341 7.6% Annual Operating Budget 1 81 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 001- GENERAL FUND SUMMARY 2025-26 % 2023-24 2024-25 Proposed Increase/ Increase/ Description Actuals Current Budget Budget (Decrease) (Decrease) Revenues by Category Taxes and Franchises 67,492,494 67,118,456 68,644,335 1,525,879 2.27% Licenses, Permits and Service Charges 6,975,640 5,947,216 6,687,250 740,034 12.44% Fines and Forfeitures 579,995 411,457 467,835 56,378 13.7% Use of Money and Property 2,985,325 1,749,390 2,122,056 372,666 21.3% Intergovernmental Revenues 10,808,406 11,367,143 11,791,203 424,060 3.73% Reimbursements 4,695,035 4,881,470 5,224,308 342,838 7.02% Operating Transfers In 15,623,028 14,407,264 18,977,057 4,569,793 31.72% Miscellaneous 29,802 51,792 64,485 12,693 24.51% Total Operating Revenues 109,189,725 105,934,188 113,978,529 8,044,341 7.59% Expenditures by Department City Council 584,223 733,180 742,448 9,268 1.26% Community Support 120,000 125,000 115,000 (10,000) -8.0% City Manager 2,067,960 2,704,600 2,796,478 91,878 3.4% Economic Development 1,776,314 1,934,943 1,927,830 (7,114) -0.37% Emergency Management 517,975 725,598 786,552 60,953 8.4% City Clerk 1,478,068 1,720,159 1,655,449 (64,709) -3.76% City Attorney 922,084 1,115,000 1,115,000 0 0.0% Finance 3,912,440 4,246,920 4,467,954 221,034 5.2% Human Resources 1,825,985 2,227,631 2,388,640 161,008 7.23% Planning 3,118,651 3,704,936 4,032,039 327,102 8.83% Building & Safety 4,718,248 5,147,948 5,325,169 177,221 3.44% Land Development 2,162,642 2,590,073 2,333,802 (256,271) -9.89% Public Works 7,845,775 8,407,337 8,429,190 21,853 0.26% Cip Public Works 3,456,647 3,533,695 3,768,335 234,640 6.64% Parks Maintenance 5,764,177 6,365,642 6,467,042 101,400 1.59% Police 40,785,303 43,630,453 48,474,402 4,843,949 11.1% Fire 10,856,217 11,083,561 13,923,013 2,839,452 25.62% Animal Control 444,156 441,582 777,820 336,238 76.14% Non Departmental: P.E.R.S. Retirement 0 (2,710,437) (3,477,724) (767,287) 28.31% Property Tax Admin Fees 54,656 90,000 93,600 3,600 4.0% Other Outside Services 1,670 0 0 0 0.0% Staffing Continuity Reserve 0 594,100 200,000 (394,100) -66.34% PIERS Replacement Benefit 85,822 90,000 91,800 1,800 2.0% Retiree Medical Contribution 4,252,733 298,000 289,000 (9,000) -3.02% Unfunded Accrued Liability Contribution 14,538,003 7,913,492 8,267,833 354,341 4.48% Total Operating Expenditures 111,289,747 106,713,414 114,990,670 8,277,256 7.76% Excess of Revenues Over (Under) Expenditures (2,100,022) (779,225) (1,012,141) (232,915) 29.89% 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. 82 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 001- GENERAL FUND SUMMARY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) (Decrease) Excess of Revenues Over (Under) Expenditures Transfer Out to Fire Facility Acquisition Fund Transfer Out to CIP Fund Transfer Out to Insurance Fund Transfer Out to Workers Comp Fund Transfer Out to PARS Total Transfers Out/One-Time Payments Fund Balance, Beginning of Year Fund Balance, End of Year Detail of Fund Balance Committed To: Economic Uncertainty Reserve (20%) Secondary Reserve (5%) Pechanga IGA Assigned To: Capital Projects Unassigned: (2,100,022) (779,225) (1,012,141) (232,915) 29.89% 1,500,000 0 0 0 0.0% (206,957) 1,485,353 500,000 (985,353) -66.34% 0 1,172,672 0 (1,172,672) -100.0% 0 436,678 0 (436,678) -100.0% 2,000,000 0 0 0 0.0% 3,293,043 3,094,703 500,000 (2,594,703) -83.84% 46,302,379 40,909,314 37,035,386 (3,873,928) -9.47% 40,909,314 37,035,386 35,523,245 (1,512,141) -4.08% 18,699,549 19,759,984 21,344,567 (1,584,583) 4,674,887 4,939,996 5,336,142 (396,146) 422,244 443,356 465,524 (22,168) 1,266,443 500,000 15,846,191 11, 392,050 40,909,314 37,035,386 0 500,000 8,377,012 3,015,038 35,523,245 (1,512,141) 8.02% 8.02% 5.0% -100.0% -26.47% -4.08% Annual Operating Budget 1 83 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 002 - MEASURE S FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Taxes and Franchises TRANSACTIONS AND USE TAX 37,673,402 37,365,950 38,300,099 934,149 2.5% Use of Money and Property INVESTMENT INTEREST 2,325,092 1,604,911 1,728,370 123,459 7.7% Revenues/Other Sources 39,998,494 38,970,861 40,028,469 1,057,608 2.7% Expenditures by Category TRANSFERS 35,541,559 62,071,599 42,771,911 (19,299,688) -31.1% Expenditures/Other Financing Uses 35,541,559 62,071,599 42,771,911 (19,299,688) -31.1% Net Revenues 4,456,935 (23,100,738) (2,743,442) 20,357,296 -18.1% Fund Balance, Beginning of Year 45,992,339 50,449,274 27,348,536 (23,100,738) -45.8% Fund Balance, End of Year 50,449,274 27,348,536 24,605,094 (2,743,442) -10.0% 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 2.7% due to anticipated local economic growth and investment interest earnings. Expenditures are decreasing 31.1% from the prior year due to a decrease in Capital Improvement transfers of $25.5 million. Overall, expenditures are in line with the Council's Appropriation Guidelines for Measure S and reflect transfers to fund Public Safety ($13.7 million), Asset Management ($2.3 million), Capital Improvements ($8.8M), and General/Community Services ($17.9 million). 84 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 006 - FIRE FACILITY ACQUISITION FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 172,262 156,221 173,287 17,066 10.9% Operating Transfers In OPERATING TRANSFERS IN 1,500,000 - - - 0.0% Revenues/Other Sources 1,672,262 156,221 173,287 17,066 10.90/0 Net Revenues 1,672,262 156,221 173,287 17,066 10.9% Fund Balance, Beginning of Year 3,029,523 4,701,785 4,858,006 156,221 3.3% Fund Balance, End of Year 4,701,785 4,858,006 5,031,293 173,287 3.6% 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 Revenue is expected to increase by 10.9% due to anticipated investment interest earnings. 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. No Operating Transfer In is expected due to adequate fund balance. Annual Operating Budget 1 85 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 110 - COMMUNITY REINVESTMENT PROGRAM SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Operating Transfers In OPERATING TRANSFERS IN 37,706 - 0.0% Revenues/Other Sources 37,706 - - - 0.00/0 Expenditures by Category SALARIES & BENEFITS 137,587 342,413 - (342,413) -100.0% OPERATIONS & MAINTENANCE 1,499,325 1,722,211 - (1,722,211) -100.0% TRANSFERS 78,652 6,346,348 - (6,346,348) -100.0% Expenditures/Other Financing Uses 1,715,564 8,410,972 - (8,410,972) -100.00/0 Net Revenues (1,677,858) (8,410,972) - 8,410,972 -100.0% Fund Balance, Beginning of Year 11,145,950 9,468,092 1,057,120 (8,410,972) -88.8% Fund Balance, End of Year 9,468,092 1,057,120 1,057,120 0.0% 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 No revenue is expected in this fund for the current year. Previously, 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 ($3,080,000) - Non -Profit Support ($1,000,000) - Homeless Services ($1,000,000) - Housing Assistance ($5,500,000) - Behavioral Health Services ($1,500,000) - Higher Education/Workforce Development ($1,000,000) Funding will be appropriated throughout the fiscal year as the programs within each category are developed. An additional $1 million in CRP funds remains unallocated, subject to Council approval. Expenditures are expected to decrease 100.0% due to no additional funding allocations over the prior year. 86 1 Annual Operating Budget CITY OF TEMECULA SPECIAL REVENUE AND DEBT SERVICE 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. 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. Annual Operating Budget 1 87 City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL SPECIAL REVENUE & DEBT SERVICE FUNDS 2025- 2023- 2024- 2026 2024 2025 Proposed Increase/ Increase/ Description Actuals Current Budget Budget (Decrease) Decrease 100 - GAS TAX FUND 4065 INVESTMENT INTEREST 39,148 28,554 42,802 14,248 49.9% 4545 GASB 31 - FMV ON INVESTMENTS 3,885 - - - 0.0% 4700 GAS TAX 2106 428,714 436,975 440,417 3,442 0.8% 4701 GAS TAX 2105 668,130 693,111 698,529 5,418 0.8% 4702 GAS TAX 2107 903,877 945,717 953,335 7,618 0.8% 4704 GAS TAX 2107.5 10,000 10,000 10,000 - 0.0% 4706 GAS TAX 2103 1,021,430 1,015,418 998,588 (16,830) -1.7% TOTAL GAS TAX FUND 3,075,185 3,129,775 3,143,671 13,896 0.4% 102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA) FUND 4065 INVESTMENT INTEREST 83,286 137,320 158,277 20,957 15.3% 4545 GASB 31 - FMV ON INVESTMENTS 29,381 - - - 0.0% 4709 RMRA-ROAD MAINTENANCE REHABILITATION ACT 2,778,429 2,770,626 2,878,989 108,363 3.9% TOTAL RMRA FUND 2,891,096 2,907,946 3,037,266 129,320 4.4% 103 - STREET MAINTENANCE FUND 4065 INVESTMENT INTEREST 167,475 204,728 227,222 22,494 11.0% 4545 GASB 31 - FMV ON INVESTMENTS 57,178 30,000 - (30,000) -100.0% 6002 TRANSFER IN FROM MEASURE S FUND 2,000,000 2,000,000 1,000,000 (1,000,000) -50.0% TOTAL STREET MAINTENANCE FUND 2,224,652 2,234,728 1,227,222 (1,007,506) -45.1% 105 - NPDES IN LIEU FEES FUND 4065 INVESTMENT INTEREST 21,811 20,162 19,603 (559) -2.8% 4545 GASB 31 - FMV ON INVESTMENTS 6,927 - - - 0.0% TOTAL NPDES IN LIEU FEES FUND 28,738 20,162 19,603 (559) -2.8% 106 - UPTOWN TEMECULA NEW STREETS IN -LIEU FEES 4065 INVESTMENT INTEREST 45,621 45,142 48,440 3,298 7.3% 4259 UPTOWN TEMECULA NEW STREETS IN LIEU FEES 424,218 - - - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 15,518 - - - 0.0% TOTAL UPTOWN TEMECULA NEW STREETS IN- 485,358 45,142 48,440 3,298 7.3% LIEU FEES 120 - DEVELOPMENT IMPACT FEES (DIF) FUND 4051 CIP - DIF-OPEN SPACE AND TRAILS 4065 INVESTMENT INTEREST 4240 CIP - DIF - QUIMBY 4242 CIP - DIF-STREET IMPROVEMENTS 4243 CIP - DIF-TRAFFIC SIGNALS 4244 CIP - DIF-PARK & REC IMPROVEMENTS 4245 CIP - DIF-CORPORATE FACILITIES 4246 CIP - DIF-FIRE PROTECTION FACILITIES 4247 CIP - DIF-LIBRARY FACILITIES 4256 CIP - DIF-POLICE FACILITIES 4545 GASB 31 - FMV ON INVESTMENTS TOTAL DEVELOPMENT IMPACT FEES FUND 125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 4039 PEG FEES REVENUES 4065 INVESTMENT INTEREST 4545 GASB 31 - FMV ON INVESTMENTS TOTAL PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 31,739 117,000 130,564 13,564 11.6% 466,595 526,011 580,626 54,615 10.4% 478,177 1,085,000 1,066,460 (18,540) -1.7% 1,881,466 240,000 4,405,584 4,165,584 1735.7% 274,086 40,000 626,330 586,330 1465.8% 957,727 400,000 447,944 47,944 12.0% 254,984 75,000 331,107 256,107 341.5% 57,115 13,000 133,581 120,581 927.5% 237,139 210,000 162,022 (47,978) -22.8% 216,136 35,000 189,778 154,778 442.2% 145,509 - - - 0.0% 5,000,674 2,741,011 8,073,996 5,332,984 194.6% 147,940 179,000 179,000 - 0.0% 33,384 33,523 36,436 2,913 8.7% 10,716 - - - 0.0% 192,040 212,523 215,436 2,913 1.4% 88 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL SPECIAL REVENUE & DEBT SERVICE FUNDS 2025- 2023- 2024- 2026 2024 2025 Proposed Increase/ Increase/ Description Actuals Current Budget Budget (Decrease) Decrease 140 - COMMUNTIY DEVELOPMENT BLOCK GRANT (CDBG) FUND 4081 COMM DEVELOPMENT BLOCK GRANT 1,495,462 647,215 612,781 (34,434) -5.3% 4169 CDBG-CV2 663,670 - - 0.0% TOTAL COMMUNITY DEV BLOCK GRANT FUND 2,159,133 647,215 612,781 (34,434) -5.3% 145 - TEMECULA ENTERGY EFFICIENCY ASSET (TEAM) FUND 4065 INVESTMENT INTEREST 24,846 20,552 22,054 1,502 7.3% 4545 GASB 31 - FMV ON INVESTMENTS 7,533 - - - 0.0% TOTAL TEAM FUND 32,379 20,552 22,054 1,502 7.3% 150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND 4048 AB 2766 REVENUES 4065 INVESTMENT INTEREST 4545 GASB 31 - FMV ON INVESTMENTS TOTAL AB 2766 MOTOR VEHICLE SUBVENTION FUND 160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND 4065 INVESTMENT INTEREST 4085 SUPPLEMENTAL LAW ENFORCEMENT SERVICES 4545 GASB 31 - FMV ON INVESTMENTS TOTAL SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND 165 - AFFORDABLE HOUSING FUND 4009 RESIDUAL RECEIPT PAYMENT 4065 INVESTMENT INTEREST 4075 RENTAL INCOME 4076 REIMBURSEMENTS 4092 CONTRIBUTIONS AGENCY TRUST 4094 LEASE INCOME 4545 GASB 31 - FMV ON INVESTMENTS 4805 SERAF TOTAL AFFORDABLE HOUSING FUND 170 - MEASURE A FUND 4065 INVESTMENT INTEREST 4545 GASB 31 - FMV ON INVESTMENTS 4725 MEASURE A ALLOCATIONS TOTAL MEASURE A FUND 198 - PUBLIC ART FUND 4065 INVESTMENT INTEREST 4251 PUBLIC ART 4545 GASB 31 - FMV ON INVESTMENTS TOTAL PUBLIC ART FUND 109,845 150,000 150,000 - 0.0% 14,545 15,073 16,694 1,621 10.8% 4.473 - - - 0.0% 128,863 165,073 166,694 1,621 1.00/0 2,197 3,129 3,502 373 11.9% 315,596 280,000 280,000 - 0.0% (154) - - - 0.0% 317,639 283,129 283,502 373 0.10/0 91,633 - - - 0.0% 214,743 224,234 238,091 13,857 6.2% - 45,000 - (45,000) -100.0% - 3,600 - (3,600) -100.0% 250,000 250,000 250,000 0.0% 75,600 25,000 - (25,000) -100.0% 68,026 - 0.0% - 620,091 - (620,091) -100.0% 700,001 1,167,925 488,091 (679,834) -58.2% 289,392 274,687 298,301 23,614 8.6% 91,732 - - - 0.0% 4,699,697 4,293,000 3,944,000 (349,000) -8.1% 5,080,822 4,567,687 4,242,301 (325,386) -7.1% 9,183 9,136 9,791 655 7.2% 50,383 3,500 1,850 (1,650) -47.1% 2,951 - - - 0.0% 62,517 12,636 11,641 (995) -7.9% Annual Operating Budget 1 89 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 100 - GAS TAX FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Taxes and Franchises GAS TAX 3,032,152 Use of Money and Property INVESTMENT INTEREST 43,033 Revenues/Other Sources 3,075,185 Expenditures by Category TRANSFERS 3,075,185 Expenditures/Other Financing Uses 3,075,185 Net Revenues - Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 3,101,221 3,100,869 (352) 0.0% 28,554 42,802 14,248 49.9% 3,129,775 3,143,671 13,896 0.4% 3,129,775 3,143,670 13,895 0.4% 3,129,775 3,143,670 13,895 0.4% 1 1 0.4% - 100.0% 1 253.6% 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 remain flat compared to the current budget, as projected by the State of California. Expenditures reflect the transfer of funds to the General Fund to augment the Public Works budget for street and road maintenance. 90 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA) FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Taxes and Franchises GAS TAX 2,778,429 2,770,626 2,878,989 108,363 3.9% Use of Money and Property INVESTMENT INTEREST 112,667 137,320 158,277 20,957 15.3% Revenues/Other Sources 2,891,096 2,907,946 3,037,266 129,320 4.4% Expenditures by Category TRANSFERS 120,859 6,098,426 2,827,154 (3,271,272) -53.6% Expenditures/Other Financing Uses 120,859 6,098,426 2,827,154 (3,271,272) -53.6% Net Revenues 2,770,237 (3,190,480) 210,112 3,400,592 -34.9% Fund Balance, Beginning of Year 1,038,689 3,808,926 618,446 (3,190,480) -83.8% Fund Balance, End of Year 3,808,926 618,446 828,559 210,112 34.0% 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 road projects and other transportation uses. Analysis/Comments RMRA revenue is projected to increase by 4.4% due to investment interest earnings and increases in gasoline excise taxes and vehicle registration fees, as projected by the State of California. Expenditures reflect the transfer to the Capital Improvement Program to fund the Pavement Rehabilitation project. Expenditures are projected to decrease by 53.6% from the prior year, primarily due to elevated prior -year transfers intended to draw down accumulated fund balance levels. Annual Operating Budget 1 91 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 103 - STREET MAINTENANCE FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 224,652 234,728 227,222 (7,506) -3.2% Operating Transfers In CONTRIBUTION FROM MEASURES 2,000,000 2,000,000 1,000,000 (1,000,000) -50.0% Revenues/Other Sources 2,224,652 2,234,728 1,227,222 (1,007,506) -45.1% Expenditures by Category TRANSFERS - 2,937,307 1,927,477 (1,009,830) -34.4% Expenditures/Other Financing Uses - 2,937,307 1,927,477 (1,009,830) -34.4% Net Revenues 2,224,652 (702,579) (700,255) 2,324 -39.0% Fund Balance, Beginning of Year 3,941,537 6,166,190 5,463,611 (702,579) -11.4% Fund Balance, End of Year 6,166,190 5,463,611 4,763,355 (700,255) -12.8% 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. Revenue is expected to decrease by 45.1% due to reduced Transfer In from the Measure S Fund. Expenditures vary from year to year depending on Capital Project funding needs. Transfers reflect funding for the Overland Drive Widening Capital Improvement Project. 92 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 105 - NPDES IN LIEU FEES FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 28,738 20,162 19,603 (559) -2.8% Revenues/Other Sources 28,738 20,162 19,603 (559) -2.8% Expenditures by Category CAPITAL OUTLAY - 385,850 114,150 (271,700) -70.4% Expenditures/Other Financing Uses - 385,850 114,150 (271,700) -70.4% Net Revenues 28,738 (365,688) (94,547) 271,141 -67.1% Fund Balance, Beginning of Year 603,016 631,753 266,065 (365,688) -57.9% Fund Balance, End of Year 631,753 266,065 171,518 (94,547) -35.5% 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. Revenue is projected to decrease by 2.8% over the prior year due to reduced investment interest earnings. Capital Outlay expenditures reflect a decrease from the prior year of 70.4% due to the phasing of the replacement of the City's Storm Drain Inlet Filters. Annual Operating Budget 1 93 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 106 - UPTOWN TEMECULA NEW STREETS IN -LIEU FEES SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges DEVELOPMENT IMPACT FEES Use of Money and Property INVESTMENT INTEREST Revenues/Other Sources Expenditures by Category TRANSFERS Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 424,218 61,139 485,358 - 45,142 45,142 - 48,440 48,440 - 3,298 3,298 0.0% 7.3% 7.3% - 500,857 - (500,857) -100.0% - 500,857 - (500,857) -100.00/0 485,358 905,760 (455,715) 1,391,118 48,440 935,402 504,155 (455,715) -91.1% -32.8% 1,391,118 935,402 983,842 48,440 5.2% 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 in this fund is related to development that occurs in the Uptown Temecula Specific Plan area and is projected to increase by 7.3% due to investment interest earnings. Expenditures are expected to decrease by 100.0% due to the completion of the Capital Improvement Program to support the Las Haciendas Affordable Housing Project. 94 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 120 - DEVELOPMENT IMPACT FEES FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges QUIMBY FEES 478,177 1,085,000 1,066,460 (18,540) -1.7% DEVELOPMENT IMPACT FEES 3,910,393 1,130,000 6,426,910 5,296,910 468.8% Use of Money and Property INVESTMENT INTEREST 612,104 526,011 580,626 54,615 10.4% Revenues/Other Sources 5,000,674 2,741,011 8,073,996 5,332,984 194.6% Expenditures by Category TRANSFERS 495,860 2,215,000 4,226,610 2,011,610 90.8% Expenditures/Other Financing Uses 495,860 2,215,000 4,226,610 2,011,610 90.80/0 Net Revenues 4,504,814 526,011 3,847,386 3,321,375 148.2% Fund Balance, Beginning of Year 11,359,340 15,864,154 16,390,165 526,011 3.3% Fund Balance, End of Year 15,864,154 16,390,165 20,237,550 3,847,386 23.5% 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 (DIF) revenues vary from year-to-year depending on the level of development activity occurring within the City. FY25- 26 revenue is expected to increase in accordance with expected development activity. Expenditures of DIF reflect the transfer to the Capital Improvement Program to fund the projects necessary to mitigate the impacts of development. Annual Operating Budget 1 95 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Taxes and Franchises PEG FEES Use of Money and Property INVESTMENT INTEREST Revenues/Other Sources Expenditures by Category CAPITAL OUTLAY Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 147,940 179,000 179,000 - 0.0% 44,100 33,523 36,436 2,913 8.7% 192,040 212,523 215,436 2,913 1.4% 37,686 175,000 25,000 (150,000) -85.7% 37,686 175,000 25,000 (150,000) -85.7% 154,355 37,523 190,436 152,913 -38.0% 879,324 1,033,678 1,071,201 37,523 3.6% 1,033,678 1,071,201 1,261,637 190,436 17.8% 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 remain flat in FY25-26, however, investment interest earnings are expected to increase, resulting in a total revenue increase of 1.4% over the prior year. Expenditures reflect the investment in updating the broadcast equipment used to manage the content and broadcast of the City's public television channel and are anticipated to decrease 85.7% over the prior year due to equipment acquisition/replacement schedules. 96 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 140 - COMMUNITY DEV BLOCK GRANT FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Intergovernmental Revenues CDBG - CV2 GRANTS 663,670 - - - 0.0% COMMUNITY DEVELOPMENT BLOCK 1,495,462 647,215 612,781 (34,434) 5.3% GRANT Revenues/Other Sources 2,159,133 647,215 612,781 (34,434) -5.3% Expenditures by Category SALARIES & BENEFITS 42,281 44,562 45,804 1,243 2.8% OPERATIONS & MAINTENANCE 183,182 189,756 246,140 56,385 29.7% TRANSFERS 2,377,403 11,843 325,000 313,157 2644.2% Expenditures/Other Financing Uses 2,602,866 246,160 616,944 370,784 150.6% Net Revenues (443,733) 401,055 (4,163) (405,218) 37.6% Fund Balance, Beginning of Year 46,842 (396,892) 4,163 401,055 101.0% Fund Balance, End of Year (396,892) 4,163 - (4,163) -100.0% 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 reflects the reimbursement for operations and Capital projects expected to be completed during the fiscal year. The transfers of $325,000 is to provide funding to the Americans with Disability Act (ADA) Transition Plan implementation. Annual Operating Budget 1 97 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 145 - TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 32,379 20,552 22,054 1,502 7.3% Revenues/Other Sources 32,379 20,552 22,054 1,502 7.3% Expenditures by Category TRANSFERS 132,270 550,852 - (550,852) -100.0% Expenditures/Other Financing Uses 132,270 550,852 - (550,852) -100.00/0 Net Revenues (99,891) (530,300) 22,054 552,354 -96.1% Fund Balance, Beginning of Year 734,293 634,403 104,103 (530f300) -83.6% Fund Balance, End of Year 634,403 104,103 126,157 22,054 21.2% 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 revenues are estimated to increase by 7.3% over the prior year due to increased investment interest earnings. Expenditures reflect the transfer of funds to the Capital Improvement Program to fund energy efficiency projects. For FY25-26, however, no transfers to the Capital Improvement Program are expected, resulting in a 100.0% decrease over the prior year. 98 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 19,018 15,073 16,694 1,621 10.8% Intergovernmental Revenues AB2766 MOTOR VEHICLE SUBVENTION 109,845 150,000 150,000 - 0.0% Revenues/Other Sources 128,863 165,073 166,694 1,621 1.00/0 Expenditures by Category OPERATIONS & MAINTENANCE 11,000 13,200 13,200 - 0.0% TRANSFERS 69,175 569,075 50,000 (519,075) -91.2% Expenditures/Other Financing Uses 80,175 582,275 63,200 (519,075) -89.10/0 Net Revenues 48,688 (417,202) 103,494 520,696 -69.2% Fund Balance, Beginning of Year 391,055 439,743 22,541 (417,202) -94.9% Fund Balance, End of Year 439,743 22,541 126,035 103,494 459.1% 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 expenditures are allocated to fund the Clean Cities Coalition ($13,200) and $50,000 is transferred to the Capital Improvement Program to provide funding for the Bike Lane and Trail Program. Expenditures are estimated to decrease by 90.3% over the prior year due to the prior year transfer to support the Nicolas Road Trail Extension project. Annual Operating Budget 1 99 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 2,043 3,129 3,502 373 11.9% Intergovernmental Revenues SLESF GRANT 315,596 280,000 280,000 - 0.0% Revenues/Other Sources 317,639 283,129 283,502 373 0.10/0 Expenditures by Category TRANSFERS 317,639 281,564 285,067 3,503 1.2% Expenditures/Other Financing Uses 317,639 281,564 285,067 3,503 1.2% Net Revenues - 1,565 (1,565) (3,130) 0.7% Fund Balance, Beginning of Year - 1,565 1,565 100.0% Fund Balance, End of Year 1,565 - (1,565) -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 to remain flat for FY25-26. Expenditures reflect the transfer of these funds to the General Fund to supplement the Sheriffs budget. 100 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 165 - AFFORDABLE HOUSING FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Description Actuals Budget Budget Increase/ (Decrease) Increase/ Decrease Revenues by Source Taxes and Franchises REDEVELOPMENT PROPERTY TAX FUND 620,091 (620,091) -100.0% DISTRIBUTION Use of Money and Property LEASE/RENTAL INCOME 75,600 70,000 (70,000) -100.0% OTHER 91,633 - - - 0.0% INVESTMENT INTEREST 282,768 224,234 238,091 13,857 6.2% Intergovernmental Revenues AGENCY TRUST CONTRIBUTION 250,000 250,000 250,000 - 0.0% Reimbursements OTHER REIMBURSEMENTS - 3,600 - (3,600) -100.0% Revenues/Other Sources 700,001 1,167,925 488,091 (679,834) -58.2% Expenditures by Category SALARIES & BENEFITS 365,308 213,449 248,132 34,683 16.2% OPERATIONS & MAINTENANCE 99,354 259,325 288,423 29,098 11.2% INTERNAL SERVICE FUND ALLOCATIONS 68,102 50,054 54,273 4,219 8.4% TRANSFERS - 5,091,359 - (5,091,359) -100.0% Expenditures/Other Financing Uses 532,763 5,614,187 590,828 (5,023,359) -89.50/0 Net Revenues 167,238 (4,446,262) (102,737) 4,343,524 -84.1% Fund Balance, Beginning of Year 12,004,378 12,171,616 7,725,354 (4,446,262) -36.5% Fund Balance, End of Year 12,171,616 7,725,354 7,622,617 (102,737) -1.3% 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 includes the transfer of bond proceeds from the former Redevelopment Agency to fund Affordable Housing projects. FY25-26 revenues are estimated to decline by 58.2% due to the one-time receipt of Redevelopment Property Tax received in 2024- 25. The FY24-25 Transfers reflect funding for the following Affordable Housing Capital Improvement Projects: - Habitat for Humanity Old Town Units ($1,261,000 - of which $561,000 is a contribution of land) - Las Haciendas Affordable Housing Project ($1,681,359) - Uptown Temecula Affordable Housing Site ($1,300,000 in land contribution) - Vine Creek Affordable Housing Project ($2,710,000) FY25-26 expenditures are estimated to decrease by 89.5% due to the reduction in Transfers over the prior year. Annual Operating Budget 1 101 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 170 - MEASURE A FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST 381,124 274,687 298,301 23,614 8.6% Intergovernmental Revenues MEASURE A 4,699,697 4,293,000 3,944,000 (349,000) -8.1% Revenues/Other Sources 5,080,822 4,567,687 4,242,301 (325,386) -7.10/0 Expenditures by Category OPERATIONS & MAINTENANCE 2,885,916 1,783,743 3,155,000 1,371,257 76.9% TRANSFERS 923,190 8,390,869 2,872,160 (5,518,709) -65.8% Expenditures/Other Financing 3,809,106 10,174,612 6,027,160 (4,147,452) -40.8% Uses Net Revenues 1,271,715 (5,606,925) (1,784,859) 3,822,066 -30.3% Fund Balance, Beginning of Year 7,096,089 8,367,804 2,760,879 (5,606,925) -67.0% Fund Balance, End of Year 8,367,804 2,760,879 976,020 (1,784,859) -64.6% 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 7.1% in FY25-26 due to a projected decrease in the sales tax transfer from the County of Riverside. Operational expenditures are increasing by 76.9% to support the Public Works department in the maintenance of streets and roads, while transfers to the Capital Improvement Program, to primarily fund the Pavement Rehabilitation Program, are decreasing by 65.8%. 102 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 198 - PUBLIC ART FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges PUBLIC ART Use of Money and Property INVESTMENT INTEREST Revenues/Other Sources Expenditures by Category OPERATIONS & MAINTENANCE Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 50,383 3,500 1,850 (1,650) -47.1% 12,134 9,136 9,791 655 7.2% 62,517 12,636 11,641 (995) -7.9% 8,460 113,226 (113,226)-100.0% 8,460 113,226 - (113,226)-100.00/0 54,057 (100,590) 11,641 112,231 -90.8% 226,427 280,483 179,893 (100,590) -35.9% 280,483 179,893 191,534 11,641 6.5% 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. Analysis/Comments The Public Art Fund revenue fluctuates each year along with development activity. Revenue for FY25-26 is expected to decrease by 7.9%, which includes a 47.1% decline in revenue from development and a 7.2% increase in investment interest earnings. Currently, no public art projects have been identified for FY25-26, therefore, expenditures are budgeted at zero. Additional expenditures will be programmed in the future as projects/programs are identified. Annual Operating Budget 1 103 CITY OF TEMECULA TEMECULA COMMUNITY SERVICES DISTRICT FUNDS 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. 104 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE BY SOURCE 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND % 2023-2024 2024-2025 2025-2026 Increase/ Increase/ Description Actuals Current Budget Proposed Budget (Decrease) Decrease Taxes and Franchises SPECIAL TAX (MEASURE C) 1,908,085 1,926,088 1,935,718 9,630 0.5% Licenses, Permits and Service Charges AQUATICS 245,054 238,966 271,966 33,000 13.8% SPORTS LEAGUES & TOURNAMENTS 301,153 224,193 222,693 (1,500) -0.7% CONTRACT CLASSES 1,021,502 1,200,000 1,200,000 - 0.0% CLASSES/ACTIVITIES 119,859 68,239 72,927 4,688 6.9% FACILITY RENTALS 426,289 382,579 366,954 (15,625) -4.1% MUSEUM ADMISSIONS 103,604 97,435 97,335 (100) -0.1% THEATER ADMISSIONS 270,541 297,000 297,000 - 0.0% DAY CAMPS 115,727 116,721 116,721 0.0% Use of Money and Property OTHER 3,117 - - - 0.0% INVESTMENT INTEREST 51,789 11,356 12,924 1,568 13.8% Reimbursements OTHER REIMBURSEMENTS 18,077 106,510 106,510 0 0.0% Operating Transfers In CONTRIBUTION FROM MEASURES 13,254,402 15,864,726 16,480,467 615,741 3.9% Miscellaneous MISCELLANEOUS 102,984 93,577 95,401 1,824 1.9% Total Revenues and Other Sources 17,942,182 20,627,390 21,276,617 649,227 3.1% Annual Operating Budget 1 105 City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Fund 2023-2024 2024-2025 2025-2026 Increase/ 190 Description Actuals Current Budget Proposed Budget (Decrease) Increase/ Decrease 180 - OPERATIONS 4004 SPECIAL TAX (MEASURE C) 1,908,085 1,926,088 1,935,718 9,630 0.5% 4060 MISCELLANEOUS NON-TAXABLE 3,117 - - - 0.0% 4065 INVESTMENT INTEREST 34,356 11,356 12,924 1,568 13.8% 4070 CASH OVER & SHORT 406 - - - 0.0% 4387 FILMING LOCATION AGREEMENT FEE - 140 80 (60) -42.9% 6002 TRANSFER IN FROM MEASURES FUND 13,254,402 15,864,726 16,480,467 615,741 3.9% 181 - TCSD - HUMAN SERVICES 4076 REIMBURSEMENTS 18,077 31,510 31,510 0 0.0% 4977 INCLUSIVE CLASSES/ACTIVITIES 1,455 2,430 2,430 - 0.0% 4978 SENIOR/INCLUSIVE DAY CAMP 32,900 1,602 1,602 0.0% 4980 CLASSES/ACTIVITIES 863 1,040 1,040 - 0.0% 4983 TRANSPORTATION 1,452 2,072 2,700 628 30.3% 4986 EXCURSIONS 4,425 2,190 4,250 2,060 94.1% 4990 INDOOR RENTALS 1,524 999 999 - 0.0% 4992 SPECIAL EVENTS 2,602 2,602 - (2,602)-100.0% 4995 HIGH HOPES 1,166 2,019 - (2,019)-100.0% 182 - TCSD - COMMUNITY RECREATION CENTER 4966 OPEN GYM RESIDENT/NON-RESIDENT 14,555 9,500 9,500 0.0% 4984 DAY CAMP 115,727 116,721 116,721 0.0% 4990 INDOOR RENTALS 16,611 15,500 3,875 (11,625) -75.0% 4992 SPECIAL EVENTS 13,996 13,371 13,371 0.0% 4998 SKATE PARK 235 - - - 0.0% 183 - TCSD - SPECIAL EVENTS 4161 SPECIAL EVENT PERMITS 500 100 400 300 300.0% 4992 SPECIAL EVENTS 62,083 53,250 60,500 7,250 13.6% 184 - TCSD - TEMECULA COMMUNITY CENTER 4921 INDOOR RENTALS - CONFERENCE CENTER 6,295 7,000 7,000 - 0.0% 4989 PICNIC SHELTER RENTALS 20,832 15,000 15,000 0.0% 4990 INDOOR RENTALS 34,071 25,000 21,000 (4,000) -16.0% 185 - TCSD - MUSEUM AND CULTURAL ARTS 4088 DONATIONS 424 395 250 (145) -36.7% 4508 GIFT SHOP 20,313 20,000 20,000 - 0.0% 4951 TOURS 239 200 100 (100) -50.0% 4953 FIELD TRIPS 3,622 2,000 2,000 - 0.0% 4980 CLASSES/ACTIVITIES 90 780 780 0.0% 4991 ADMISSIONS 25,203 22,235 22,235 0.0% 4992 SPECIAL EVENTS 1,200 - - - 0.0% 186 - TCSD - AQUATICS 4970 SWIM LESSONS 186,266 175,000 200,000 25,000 14.3% 4971 LAP SWIM 21,654 22,000 22,000 - 0.0% 4972 PUBLIC SWIM 28,077 32,000 40,000 8,000 25.0% 4973 FAMILY NIGHT SWIM 892 1,316 1,316 - 0.0% 4974 POOL RENTALS 21,526 24,000 24,000 0.0% 4976 NON-RESIDENT SWIM 8,165 8,650 8,650 0.0% 4980 CLASSES/ACTIVITIES 68,463 53,000 53,000 0.0% 106 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND Fund 2023-2024 2024-2025 2025-2026 Increase/ % 190 Description Actuals Current Budget Proposed Budget (Decrease) Increase/ Decrease 187 - TCSD - SPORTS 4959 ADULT BASKETBALL LEAGUE 12,090 6,923 6,923 0.0% 4960 ADULT SOFTBALL 80,590 56,860 56,860 0.0% 4961 ADULT KICKBALL 5,010 4,400 4,400 0.0% 4962 HOCKEY 29,578 14,250 12,750 (1,500) -10.5% 4963 TOURNAMENTS 142,890 120,000 120,000 0.0% 4965 YOUTH LEAGUES- NON-RESIDENT 16,205 12,260 12,260 0.0% 4988 FIELD RENTALS/LIGHTS 219,296 200,080 200,080 - 0.0% 4997 CONCESSIONS - 600 - (600)-100.0% 189 - TCSD - COMMUNITY THEATER 4070 CASH OVER & SHORT 10 - - - 0.0% 4901 FRONT OF HOUSE FEES 7,083 7,000 7,000 0.0% 4906 THEATER -STAGEHAND LABOR REIMB. 112,298 110,000 110,000 0.0% 4907 THEATER -TICKET SERVICES REIMB. 39,452 40,000 40,000 0.0% 4910 THEATER-TEMECULA PRESENTS 111,708 140,000 140,000 0.0% 4990 INDOOR RENTALS 67,989 60,000 60,000 0.0% 4991 ADMISSIONS 78,162 75,000 75,000 0.0% 4997 CONCESSIONS 1,200 1,200 1,200 0.0% 4999 THEATER -EQUIPMENT RENTALS 38,147 35,000 35,000 0.0% 197 - TCSD - CONTRACT CLASSES 4982 CONTRACTED CLASSES 1,021,502 1,200,000 1,200,000 0.0% 201 - TCSD - HOMELESS OUTREACH AND PREVENTION 4076 REIMBURSEMENTS - 75,000 75,000 - 0.0% 202 - TCSD - WORKFORCE DEVELOPMENT 4248 TCSD WORKFORCE PROGRAMS 6,090 3,025 4,725 1,700 56.2% 199 - NON -DEPARTMENTAL 4545 GASB 31 - FMV ON INVESTMENTS 17,017 - - - 0.0% TOTAL TEMECULA COMMUNITY SERVICES 17,942,182 20,627,390 21,276,617 649,227 3.1% DISTRICT FUND Annual Operating Budget 1 107 City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL TEMECULA COMMUNITY SERVICE DISTRICT Description 191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 4065 INVESTMENT INTEREST 6192 TRANSFER IN FROM SVC LVL B STREET LIGHTS FUND 4545 GASB 31 - FMV ON INVESTMENTS TOTAL TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 2024-2025 2025-2026 % 2023-2024 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) Decrease 40,590 43,442 47,370 3,927 9.0% 200,000 200,000 - (200,000) -100.0% 14,004 - - 0.0% 254,595 243,442 47,370 (196,073) -80.5% 192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 4005 ASSESSMENTS 654,945 658,307 658,173 (134) 0.0% 4065 INVESTMENT INTEREST 15,669 15,399 15,756 357 2.3% 4545 GASB 31 - FMV ON INVESTMENTS 2,650 - - - 0.0% TOTAL TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 673,264 673,706 673,929 223 0.0% 194 - TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 4005 ASSESSMENTS 10,437,416 10,588,128 10,586,696 (1,432) 0.0% 4025 GRANTS 290,059 127,037 127,037 - 0.0% 4065 INVESTMENT INTEREST 60,179 30,067 33,639 3,573 11.9% 4096 RECYCLING PROGRAM 63,832 27,553 27,553 - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 1,301 - - - 0.0% TOTALTCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 10,852,787 10,772,785 10,774,926 2,141 0.0% 195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT. FUND 4005 ASSESSMENTS 5,504 5,532 5,532 0 0.0% 4065 INVESTMENT INTEREST 1,271 2,605 1,410 (1,195) -45.9% 4545 GASB 31 - FMV ON INVESTMENTS 400 - - 0.0% TOTAL TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 7,175 8,137 6,943 (1,195) -14.7% 196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 4005 ASSESSMENTS 254,788 256,750 259,318 2,568 1.0% 4007 HARVESTON LAKE BOAT REVENUE 2,325 - - - 0.0% 4060 MISCELLANEOUS NON-TAXABLE 176 - - - 0.0% 4065 INVESTMENT INTEREST 12,864 11,702 12,023 320 2.7% 4301 PERMITS 6,405 5,000 6,000 1,000 20.0% 4545 GASB 31 - FMV ON INVESTMENTS 3,411 - - - 0.0% TOTAL TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 279,969 273,452 277,341 3,888 1.4% 197 - TEMECULA LIBRARY FUND 4065 INVESTMENT INTEREST 14,844 15,300 9,124 (6,176) -40.4% 4071 FINES & FEES 33,807 28,446 11,378 (17,068) -60.0% 4079 PRINTING & COPIES 10,349 8,919 10,792 1,873 21.0% 4274 FACILITIES RENTALS 14,754 14,620 14,620 - 0.0% 6002 TRANSFER IN FROM MEASURES FUND 818,085 1,127,563 1,384,016 256,453 22.7% 4545 GASB 31 - FMV ON INVESTMENTS 4,134 - - - 0.0% TOTAL TEMECULA LIBRARY FUND 895,973 1,194,848 1,429,930 235,082 19.7% 501-530 TCSD SERVICE LEVEL "C" SLOPE MAINT. FUNDS 4005 ASSESSMENTS 11594,019 1,592,097 1,593,048 951 0.1% 4060 MISCELLANEOUS NON-TAXABLE 322,833 - - - 0.0% 4065 INVESTMENT INTEREST 70,496 121,191 62,954 (58,237) -48.1% 4545 GASB 31 - FMV ON INVESTMENTS 20,494 - - 0.0% TOTAL 501 TCSD SERVICE LEVEL "C" SLOPE MAINT FUNDS 2,007,843 1,713,288 1,656,002 (57,286) -14.7% 108 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - ALL FUNDS COMBINED 2025-2026 % 2023-2024 2024-2025 Proposed Increase/ Increase/ Description Actuals Current Budget Budget (Decrease) Decrease Revenues by Fund 190 - TCSD Operations 17,942,182 20,627,390 21,276,617 649,227 3.1% 191 - Service Level B (Streetlight Replacement) 254,595 243,442 47,370 (196,073) -80.5% 192 - Service Level B (Street Lights) 673,264 673,706 673,929 223 0.0% 194-Service Level D (Refuse/Recycling) 10,852,787 10,772,785 10,774,926 2,141 0.0% 195-Service Level R (Road Maintenance) 7,175 8,137 6,943 (1,195) -14.7% 196-Service Level L (Lake Park Maintenance) 279,969 273,452 277,341 3,888 1.4% 197-Temecula Public Library 895,973 1,194,848 1,429,930 235,082 19.7% 501-530-Service Level C (Slope Maintenance) 2,007,843 1,713,288 1,656,002 (57,286) -3.3% Total Revenues and Other Sources 32.913.787 35.507.049 36.143.057 636.008 1.8% Expenditures by Fund 190 - TCSD Operations 18,234,885 21,116,715 21,311,588 194,874 0.9% 191 - Service Level B (Streetlight Replacement) - - 20,000 20,000 100.0% 192 - Service Level B (Street Lights) 541,632 684,000 726,938 42,938 6.3% 194-Service Level D (Refuse/Recycling) 10,487,951 11,101,603 11,268,756 167,154 1.5% 195-Service Level R (Road Maintenance) 107 5,425 10,434 5,009 92.3% 196-Service Level L (Lake Park Maintenance) 267,945 320,001 318,076 (1,925) -0.6% 197-Temecula Public Library 1,144,148 1,334,578 1,445,528 110,950 8.3% 501-530-Service Level C (Slope Maintenance) 1,848,709 1,633,893 1,668,781 34,888 2.1% Total Expenditures and Other Financial Uses 32,525,377 36,196,213 36,770,101 573,888 1.6% Excess of Revenues Over (Under) Expenditures 388,410 (689,164) (627,045) 62,120 1.7% Fund Balance, Beginning of Year 5,777,652 6,166,062 5,476,897 (689,164) -11.2% Fund Balance, End of Year 6,166,062 5,476,897 4,849,853 (627,045) -11.4% 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, arterial 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. Annual Operating Budget 1 109 City of Temecula Fiscal Year 2025-26 Annual Operating Budget TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) OPERATIONS SUMMARY Fund: 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND 2022-2023 2023-2024 2024-2025 Increase/ Increase/ Description Actuals Current Budget Proposed Budget (Decrease) Decrease TEMECULA COMMUNITY SERVICES DISTRICT FUND Revenues by Department AQUATICS COMMUNITY RECREATION CENTER COMMUNITY THEATER CONTRACT CLASSES HOMELESS OUTREACH AND PREVENTION MUSEUM AND CULTURAL ARTS NON -DEPARTMENTAL OPERATIONS SENIOR AND INCLUSIVE SERVICES SPECIAL EVENTS SPORTS TEMECULA COMMUNITY CENTER WORKFORCE DEVELOPMENT Total Revenues Expenditures by Department AQUATICS COMMUNITY RECREATION CENTER COMMUNITY THEATER CONTRACT CLASSES HOMELESS OUTREACH AND PREVENTION MUSEUM AND CULTURAL ARTS OPERATIONS SENIOR AND INCLUSIVE SERVICES i.7•lty/_111111"t1:11►11[.9 SPORTS TEMECULA COMMUNITY CENTER WORKFORCE DEVELOPMENT Total Expenditures Excess of Revenues Over (Under) Expenditures Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 335,042 315,966 348,966 33,000 10.44% 161,124 155,092 143,467 (11,625) -7.50% 456,049 468,200 468,200 0.00% 1,021,502 1,200,000 1,200,000 0.00% - 75,000 75,000 - 0.00% 51,091 45,610 45,365 (245) -0.54% 17,017 - - - 0.00% 15,200,365 17,802,310 18,429,190 626,880 3.52% 64,463 46,464 44,531 (1,933) -4.16% 62,583 53,350 60,900 7,550 14.15% 505,658 415,373 413,273 (2,100) -0.51% 61,198 47,000 43,000 (4,000) -8.51% 6,090 3,025 4,725 1,700 56.20% 17,942,182 20,627,390 21,276,617 649,227 3.15% 1,627,795 2,648,317 2,589,635 (58,682) -2.22% 1,290,167 1,371,032 1,243,832 (127,200) -9.28% 1,591,395 1,637,185 1,683,992 46,807 2.86% 1,171,168 1,668,635 1,819, 925 151,291 9.07% 1,240,845 1,661,154 1,742,791 81,637 4.91% 852,526 914,514 834,747 (79,767) -8.72% 6,610,514 6,875,584 7,059,724 184,141 2.68% 932,748 1,165,743 1,703,294 537,551 46.11% 1,564,886 1,234,281 1,352,415 118,135 9.57% 676,968 1,032,477 986,706 (45,771) -4.43% 368,249 485,984 242,527 (243,457) -50.10% 307,622 421,810 - (421,810) -100.00% 18,234,885 21,116,715 21,259,588 142,874 0.68% (292,703) (489,325) 17,029 506,354-103.48% 916,999 624,297 134,972 (489,325) -78.4% 624,297 134,972 152,000 17,029 12.6% 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, arterial 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 revenue is projected to increase overall by 3.1%, including a 10.49% increase in Aquatics due to the new pool facility at the Margarita Recreation Center and a 13.8% increase in investment interest earnings. Expenditures are estimated to increase 0.68%, including a 6.3% increase in Salaries & Benefits offset by a reduction in Operations & Maintenance expenditures of 11.7%. These expenditures continue to provide the community recreational, cultural arts, sports human service programs, including the opening of the newly renovated Margarita Recreation Center. 110 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Use of Money and Property INVESTMENT INTEREST Operating Transfers In OPERATING TRANSFERS IN Revenues/Other Sources Expenditures by Category OPERATIONS & MAINTENANCE Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 54,595 200,000 43,442 200,000 47,370 - 3,927 (200,000) 9.0% -100.01 254,595 243,442 47,370 (196,073) -80.50/0 - - 20,000 20,000 100.0% - - 20,000 20,000 100.00/0 254,595 11069,628 243,442 1,324,223 27,370 1,567,665 (216,073) 243,442 -72.3% 18.4% 1,324,223 1,567,665 1,595,035 27,370 1.7% This fund was established to accumulate resources for the replacement of streetlight equipment, poles and lightbulbs, as the City has acquired street lights from Southern California Edison, and to install new street lights as needed throughout the City. Each year, $200,000 is transferred to this fund from the TCSD Service Level "B" Street Lights Fund (Fund 192), until the desired reserve of $1.5 million is reached. Analysis/Comments FY25-26 revenues are projected to decrease by 80.5% due to the reduction of Transfers from Fund 192. Expenditures are estimated to increase 100.0% over the prior year in order to maintain the newly acquired residential street lights. Annual Operating Budget 1 111 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges ASSESSMENTS 654,945 658,307 658,173 (134) 0.0% Use of Money and Property INVESTMENT INTEREST 18,319 15,399 15,756 357 2.3% Revenues/Other Sources 673,264 673,706 673,929 223 0.00/0 Expenditures by Category SALARIES & BENEFITS - - 206,647 206,647 100.0% OPERATIONS & MAINTENANCE 341,632 484,000 483,688 (312) -0.1% INTERNAL SERVICE FUND 36,603 36,603 100.0% ALLOCATIONS TRANSFERS 200,000 200,000 - (200,000) -100.0% Expenditures/Other Financing 541,632 684,000 726,938 42,938 6.30/0 Uses Net Revenues 131,632 (10,294) (53,010) (42,715) 3.2% Fund Balance, Beginning of Year 391,634 523,266 512,971 (10,294) -2.0% Fund Balance, End of Year 523,266 512,971 459,962 (53,010) -10.3% 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 streetlights. Each year, $200,000 is transferred from this fund to the TCSD Service Level "B" Streetlight Replacement Fund (Fund 191) to accommodate these costs, until the desired reserve in Fund 191 of $1.5 million is reached. Analysis/Comments Service Level B assessment revenue is utilized to cover the costs for maintaining the street light network. For FY25-26, expenditures are expected to increase a total of 6.3% over the prior year due to the addition of a new position, Signal Technician I, to support the ongoing operations and maintenance of the streetlight network. 112 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 194 - TCSD SERVICE LEVEL "D" 2023-2024 Description Actuals REFUSE/RECYCLING FUND SUMMARY 2024-2025 2025-2026 Current Proposed Increase/ Budget Budget (Decrease) Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges RECYCLING PROGRAM 63,832 27,553 27,553 - 0.0% ASSESSMENTS 10,437,416 10,588,128 10,586,696 (1,432) 0.0% Use of Money and Property INVESTMENT INTEREST 61,480 30,067 33,639 3,573 11.9% Intergovernmental Revenues GRANTS 290,059 127,037 127,037 - 0.0% Revenues/Other Sources 10,852,787 10,772,785 10,774,926 2,141 0.00/0 Expenditures by Category SALARIES & BENEFITS 80,543 79,522 74,789 (4,733) -6.0% OPERATIONS & MAINTENANCE 10,407,408 10,998,675 11,162,451 163,776 1.5% CAPITAL OUTLAY - 23,405 31,516 8,111 34.7% Expenditures/Other Financing Uses 10,487,951 11,101,603 11,268,756 167,154 1.50/0 Net Revenues 364,835 (328,818) (493,830) (165,013) 0.8% Fund Balance, Beginning of Year 580,363 945,198 616,380 (328,818) -34.8% Fund Balance, End of Year 945,198 616,380 122,550 (493,830) -80.1% 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 revenues are projected to remain flat overall for FY25-26, with an increase of 11.9% in investment interest earnings. Total expenditures are projected to increase by 1.5%, which includes a 6.0% reduction in Salaries & Benefits and a 34.7% increase in Capital Outlay due to prior -year rollover. Expenditures reflect the pass through of the Assessment revenue, collected through property tax bills, to CR&R for Refuse and Recycling services. Annual Operating Budget 1 113 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges ASSESSMENTS Use of Money and Property INVESTMENT INTEREST Revenues/Other Sources Expenditures by Category OPERATIONS & MAINTENANCE Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 5,504 5,532 5,532 0.0% 1,671 2,605 1,410 (1,195) -45.9% 7,175 8,137 6,943 (1,195) -14.7% 107 5,425 10,434 5,009 92.3% 107 5,425 10,434 5,009 92.3% 7,068 2,712 (3,491) (6,204) 28.1% 33,055 40,123 42,835 2,712 6.8% 40,123 42,835 39,344 (3,491) -8.2% 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 revenue is projected to decrease by 14.7% due to an adjustment to the allocation of investment interest earnings. Expenditures are anticipated to increase by 92.3%, which includes an increased allocation for emergency street maintenance. Expenditures reflect the maintenance costs of Leifer Road and other unpaved roads in the area. 114 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges HARVESTON LAKE BOAT REVENUE 2,325 - - - 0.0% ASSESSMENTS 254,788 256,750 259,318 2,568 1.0% Use of Money and Property OTHER 176 - - - 0.0% INVESTMENT INTEREST 16,275 11,702 12,023 320 2.7% Miscellaneous MISCELLANEOUS 6,405 5,000 6,000 1,000 20.0% Revenues/Other Sources 279,969 273,452 277,341 3,888 1.4% Expenditures by Category SALARIES & BENEFITS 12,750 14,601 14,976 375 2.6% OPERATIONS & MAINTENANCE 255,195 305,400 303,100 (2,300) -0.8% Expenditures/Other Financing Uses 267,945 320,001 318,076 (1,925) -0.6% Net Revenues 12,024 (46,548) (40,735) 5,813 0.3% Fund Balance, Beginning of Year 360,756 372,780 326,232 (46,548) -12.5% Fund Balance, End of Year 372,780 326,232 285,497 (40,735) -12.5% Fund Description Service Level L Fund reflects the benefit assessments charged to property owners for the purpose of maintaining Harveston Lake Park. Expenditures include operational, administrative and maintenance costs. Analysis/Comments Service Level L revenue is projected to increase by 1.4% primarily due to a 1.0% increase in Assessments and a 20.0% increase in Miscellaneous revenue related to fishing permits at Harveston Lake. Expenditures reflect a 0.6% decrease due to a reduction in Operations & Maintenance costs. Annual Operating Budget 1 115 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 197 - TEMECULA LIBRARY FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Description Actuals Budget Budget Increase/ (Decrease) Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges PRINTING & COPIES 10,349 8,919 10,792 1,873 21.0% Fines and Forfeitures FINES & FORFEITURES 33,807 28,446 11,378 (17,068) -60.0% Use of Money and Property LEASE/RENTAL INCOME 14,754 14,620 14,620 0.0% INVESTMENT INTEREST 18,978 15,300 9,124 (6,176) -40.4% Operating Transfers In CONTRIBUTION FROM MEASURES 818,085 1,127,563 1,384,016 256,453 22.7% Revenues/Other Sources 895,973 1,194,848 1,429,930 235,082 19.7% Expenditures by Category SALARIES & BENEFITS 226,676 264,954 345,661 80,707 30.5% OPERATIONS & MAINTENANCE 528,862 581,908 565,823 (16,085) -2.8% INTERNAL SERVICE FUND 388,609 446,566 534,044 87,478 19.6% ALLOCATIONS CAPITAL OUTLAY - 41,150 - (41,150) -100.0% Expenditures/Other Financing 1,144,148 1,334,578 1,445,528 110,950 8.3% Uses Net Revenues (248,174) (139,729) (15,598) 124,131 13.7% Fund Balance, Beginning of Year 503,501 255,327 115,598 (139,729) -54.7% Fund Balance, End of Year 255,327 115,598 100,000 (15,598) -13.5% 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 Contributions from Measure S serve as the primary funding source for library operations. For FY25-26, Library revenues are anticipated to increase by a total of 19.7%. This includes a 60.0% reduction in Fines & Forfeitures, a 40.0% reduction in investment interest earnings, and a 22.7% increase in the Contribution From Measure S. Library expenditures are expected to increase by 8.3%, primarily due to a 30.5% increase in Salaries & Benefits related to the hiring of custodial staff, which is partially offset by a reduction in the janitorial contract, and a 19.6% increase in Internal Service Fund Allocations related to the increase in technology devices allocated to the Library. Offsetting these expenses is a 100.0% reduction in Capital Outlay due to the completed purchase of a storage shed. 116 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget FUNDS 501-530 SERVICE LEVEL C - LANDSCAPE / SLOPE MAINTENANCE SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges ASSESSMENTS Use of Money and Property OTHER INVESTMENT INTEREST Revenues/Other Sources Expenditures by Category OPERATIONS & MAINTENANCE TRANSFERS Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 11594,019 1,592,097 1,593,048 951 0.1% 322,833 90,990 - 121,191 - 62,954 (58,237) 0.0% -48.1% 2,007,843 1,713,288 1,656,002 (57,286) -3.3% 1,436,817 411,891 1,594,084 39,809 1,668,781 - 74,697 (39,809) 4.7% -100.0% 1,848,709 1,633,893 1,668,781 34,888 2.10/0 159,134 18,201 79,396 177,334 (12,779) 256,730 (92,175) 79,396 -0.7% 44.8% 177,334 256,730 243,951 (12,779) -5.0% 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 a decrease in interest income. FY25-26 expenditures will increase by 2.1% due increased cost of landscape maintenance and a decrease in transfers out to other funds. Annual Operating Budget 1 117 —_���� ���- '�_�, ratn � ��*..� d=��•��. ��} `-,� mow.. T+ •, 1 r' ' City of Temecula Fiscal Year 2025-26 Annual Operating Budget 380 - SARDA DEBT SERVICE FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Taxes and Franchises REDEVELOPMENT PROPERTY TAX FUND 7,568,475 6,980,394 (588,081) 7.8% DISTRIBUTION Use of Money and Property INVESTMENT INTEREST 208,800 173,208 165,629 (7,579) -4.4% Operating Transfers In OPERATING TRANSFERS IN 7,049,778 - - 0.0% Revenues/Other Sources 7,258,578 7,741,683 7,146,023 (595,660) -7.7% Expenditures by Category OPERATIONS & MAINTENANCE 1,570,244 299,500 1,479,497 1,179,997 394.0% DEBT SERVICE - PRINCIPAL - 2,860,000 2,860,000 - 0.0% DEBT SERVICE - INTEREST 2,867,313 2,751,144 2,751,144 0.0% TRANSFERS 732,503 750,000 - (750,000) -100.0% Expenditures/Other Financing Uses 5,170,059 6,660,644 7,090,641 429,997 6.50/0 Net Revenues 2,088,519 1,081,039 55,382 (1,025,657) -1.2% Fund Balance, Beginning of Year (36,380,478) (34,291,959) (33,210,921) 1,081,039 3.2% Fund Balance, End of Year (34,291,959) (33,210,921) (33,155,539) 55,382 0.2% 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. The funds are transferred to the Capital Improvement Program Fund to support Affordable Housing projects. Debt Service expenditures are for the 2017A and 2017B Tax Allocation Refunding Bonds. Annual Operating Budget 1 119 CITY OF TEMECULA INTERNAL SERVICE FUNDS 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. 120 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL INTERNAL SERVICE FUNDS 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ % Increase/ Description Actuals Budget Budget (Decrease) Decrease 300 - INSURANCE FUND 4065 INVESTMENT INTEREST 28,590 37,615 52,725 15,110 40.2% 4076 REIMBURSEMENTS 396,641 - - - 0.0% 4176 CHARGES FOR SERVICES 3,827,116 3,115,169 3,800,317 685,148 22.0% 4545 GASB 31 - FMV ON INVESTMENTS 8,392 - - - 0.0% 6001 TRANSFER IN FROM GENERAL FUND - 1,172,672 - (1,172,672) -100.0% TOTAL INSURANCE FUND 4,260,738 4,325,456 3,853,042 (472,414) -10.9% 305 - WORKERS' COMPENSATION FUND 4065 INVESTMENT INTEREST 44,827 29,262 29,354 92 0.3% 4176 CHARGES FOR SERVICES - 556,470 601,030 44,560 8.0% 4545 GASB 31 - FMV ON INVESTMENTS 13,667 - - - 0.0% 6001 TRANSFER IN FROM GENERAL FUND - 436,678 - (436,678) -100.0% TOTAL WORKERS' COMPENSATION FUND 58,495 1,022,410 630,384 (392,026) -38.3% 310 - VEHICLES AND EQUIPMENT FUND 4065 INVESTMENT INTEREST 4176 CHARGES FOR SERVICES 4545 GASB 31 - FMV ON INVESTMENTS TOTAL VEHICLES AND EQUIPMENT FUND 320 - INFORMATION TECHNOLOGY FUND 4065 INVESTMENT INTEREST 4176 CHARGES FOR SERVICES 4545 GASB 31 - FMV ON INVESTMENTS 6002 TRANSFER IN FROM MEASURES FUND TOTAL INFORMATION TECHNOLOGY FUND 325 - TECHNOLOGY REPLACEMENT FUND 4065 INVESTMENT INTEREST 4176 CHARGES FOR SERVICES 4545 GASB 31 - FMV ON INVESTMENTS 6320 TRANSFER IN FROM INFORMATION TECHNOLOGY FUND TOTAL TECHNOLOGY REPLACEMENT FUND 330 - SUPPORT SERVICES FUND 4065 INVESTMENT INTEREST 4176 CHARGES FOR SERVICES 4545 GASB 31 - FMV ON INVESTMENTS TOTAL SUPPORT SERVICES FUND 117,473 111,043 119,763 8,720 7.9% 432,332 505,284 511,907 6,623 1.3% 37,481 - - - 0.0% 587,286 616,327 631,670 15,343 2.5% 31,462 22,583 25,533 2,951 13.1% 5,847,141 6,586,001 6,927,781 341,780 5.2% 13,145 - - - 0.0% 300,000 300,000 300,000 - 0.0% 6,191,747 6,908,584 7,253,314 344,731 5.0% 97,971 192,909 119,388 (73,521) -38.1% 164,530 255,842 321,333 65,491 25.6% 30,365 - - - 0.0% - 1,748,615 - (1,748,615)-100.0% 292,866 2,197,366 440,721 (1,756,645) -79.9% 383 510 321 (190) -37.2% 341,356 429,895 387,827 (42,068) -9.8% 404 - - 0.0% 342,144 430,405 388,148 (42,258) -9.8% Annual Operating Budget 1 121 City of Temecula Fiscal Year 2025-26 Annual Operating Budget REVENUE DETAIL INTERNAL SERVICE FUNDS 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ % Increase/ Description Actuals Budget Budget (Decrease) Decrease 335 - SUPPORT SERVICES REPLACEMENT FUND 4065 INVESTMENT INTEREST 12,388 11,923 12,729 806 6.8% 4176 CHARGES FOR SERVICES 33,101 28,165 30,881 2,716 9.6% 4545 GASB 31 - FMV ON INVESTMENTS 4,002 - - - 0.0% TOTAL SUPPORT SERVICES REPLACEMENT FUND 49,490 40,088 43,610 3,522 8.8% 340 - FACILITIES FUND 4065 INVESTMENT INTEREST 4076 REIMBURSEMENTS 4176 CHARGES FOR SERVICES 4545 GASB 31 - FMV ON INVESTMENTS TOTAL FACILITIES FUND 350 - FACILITY REPLACEMENT FUND 4065 INVESTMENT INTEREST 4176 CHARGES FOR SERVICES 4545 GASB 31 - FMV ON INVESTMENTS 6002 TRANSFER IN FROM MEASURES FUND 6340 TRANSFER IN FROM FACILITIES FUND TOTAL FACILITY REPLACEMENT FUND 15,082 12,533 13,001 468 3.7% 24,000 48,000 24,000 (24,000) -50.0% 1,648,283 1,703,247 1,645,947 (57,300) -3.4% 5,551 - - 0.0% 1,692,915 1,763,780 1,682,948 (80,832) -4.6% 33,251 88,524 111,755 23,230 26.2% 92,005 118,313 121,550 3,237 2.7% 12,008 - - - 0.0% 2,550,000 2,500,000 1,250,000 (1,250,000) -50.0% - 606,326 - (606,326) -100.0% 2,687,264 3,313,164 1,483,305 (1,829,859) -55.2% 122 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget Description 300 - INSURANCE FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Actuals Budget Budget Increase/ (Decrease) Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 3,827,116 3,115,169 3,800,317 685,148 22.0% Use of Money and Property INVESTMENT INTEREST 36,981 37,615 52,725 15,110 40.2% Reimbursements OTHER REIMBURSEMENTS 396,641 - - - 0.0% Operating Transfers In OPERATING TRANSFERS IN - 1,172,672 - (1,172,672) -100.0% Revenues/Other Sources 4,260,738 4,325,456 3,853,042 (472,414) -10.90/0 Expenditures by Category SALARIES & BENEFITS 221,774 207,956 273,054 65,097 31.3% OPERATIONS & MAINTENANCE 3,605,342 3,282,213 3,527,263 245,050 7.5% Expenditures/Other Financing Uses 3,827,116 3,490,169 3,800,317 310,148 8.90/0 Net Revenues 433,622 835,287 52,725 (782,562) -2.1% Fund Balance, Beginning of Year 756,091 1,189,713 2,025,000 835,287 70.2% Fund Balance, End of Year 1,189,713 2,025,000 2,077,725 52,725 2.6% 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 $500,000 per incident and strives to maintain a fund balance equal to three times the SIR. Analysis/Comments For FY25-26, the Insurance Fund revenue is projected to decrease by 10.9% overall. This includes a 22.0% increase in Charges for Services and a 40.2% increase in investment interest earnings. Offsetting these revenue increases is a 100.0% decrease in the Operating Transfer In revenue from the General Fund that was used in the prior year to maintain appropriate Fund Balance levels. Expenditures are increasing by 8.9%, primarily due to higher insurance premiums expected in FY25-26. Annual Operating Budget 1 123 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 305 - WORKERS' COMPENSATION FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Description Actuals Budget Budget (Decrease) Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES - 556,470 601,030 44,560 8.0% Use of Money and Property INVESTMENT INTEREST 58,495 29,262 29,354 92 0.3% Operating Transfers In OPERATING TRANSFERS IN - 436,678 - (436,678) -100.0% Revenues/Other Sources 58,495 1,022,410 630,384 (392,026) -38.3% Expenditures by Category SALARIES & BENEFITS 221,773 193,674 273,564 79,890 41.2% OPERATIONS & MAINTENANCE 289,371 370,756 383,605 12,849 3.5% Expenditures/Other Financing Uses 511,143 564,429 657,169 92,739 16.4% Net Revenues (452,649) 457,980 (26,785) (484,766) -18.9% Fund Balance, Beginning of Year 1,499,975 1,047,326 1,505,306 457,980 43.7% Fund Balance, End of Year 1,047,326 1,505,306 1,478,521 (26,785) -1.8% 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 For FY25-26, the Workers' Compensation Fund revenue is expected to decrease by 38.3%. This includes a 100.0% reduction of the Operating Transfer In from the General Fund, which was required in the previous year to maintain appropriate Fund Balance levels. Partially offsetting this reduction is an increase in Charges for Services of 8.0%. In general, revenue reflects the Internal Service Fund allocation to departments necessary to maintain the desired fund balance. Expenditures are projected to increase by 16.4%, primarily due to a 41.2% increase in Salaries & Benefits, due to the new allocation of a Management Assistant assigned to this Fund. 124 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 310 -VEHICLES AND EQUIPMENT FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Description Actuals Budget Budget (Decrease) Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 432,332 505,284 511,907 6,623 1.3% Use of Money and Property INVESTMENT INTEREST 154,954 111,043 119,763 8,720 7.9% Revenues/Other Sources 587,286 616,327 631,670 15,343 2.5% Expenditures by Category OPERATIONS & MAINTENANCE 429,526 - 429,527 429,527 100.0% CAPITAL OUTLAY 1,408 279,050 370,000 90,950 32.6% Expenditures/Other Financing Uses 430,934 279,050 799,527 520,477 186.5% Net Revenues 156,352 337,277 (167,857) (505,134) 59.8% Fund Balance, Beginning of Year 5,249,290 5,405,642 5,742,918 337,277 6.2% Fund Balance, End of Year 5,405,642 5,742,918 5,575,061 (167,857) -2.9% 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 expenditures include the replacement of several fleet vehicles and heavy equipment that have reached the end of their useful life. For FY25-26, expenditures are increasing by 186.5% over the prior year. This includes a 100.0% increase in Operations & Maintenance to account for depreciation expenses and a 32.6% increase in Capital Outlay to replace an aging dump truck and the purchase of a boom truck. Annual Operating Budget 1 125 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 320 - INFORMATION TECHNOLOGY FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES Use of Money and Property INVESTMENT INTEREST Operating Transfers In CONTRIBUTION FROM MEASURES Revenues/Other Sources Expenditures by Category SALARIES & BENEFITS OPERATIONS & MAINTENANCE INTERNAL SERVICE FUND ALLOCATIONS CAPITAL OUTLAY TRANSFERS Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 5,847,141 6,586,001 6,927,781 341,780 5.2% 44,606 22,583 25,533 2,951 13.1% 300,000 300,000 300,000 - 0.0% 6,191,747 6,908,584 7,253,314 344,731 5.00/0 2,882,293 3,126,462 3,312,956 186,494 6.0% 3,184,590 3,595,797 3,914,825 319,028 8.9% 2,660 2,660 - (2,660) -100.0% (475,258) - 0.0% - 1,748,615 - (1,748,615) -100.0% 5,594,285 8,473,534 7,227,781 (1,245,753) -14.7% 597,462 (1,564,951) 25,533 1,590,484 -5.9% 1,792,752 2,390,214 825,263 (1,564,951) -65.5% 2,390,214 825,263 850,797 25,533 3.1% 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 For FY25-26, the Information Technology Fund revenues are increasing by 5.0%, which includes a 13.1% increase in investment interest earnings. Expenditures are decreasing by a total of 14.7% due primarily to the 100.0% reduction in the transfer of accumulated fund balance to Fund 325 - Technology Replacement Fund. Offsetting this decrease is a 6.0% increase in Salaries & Benefits and a 8.9% increase in Operations & Maintenance expenses. 126 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 325 - TECHNOLOGY REPLACEMENT FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES Use of Money and Property INVESTMENT INTEREST Operating Transfers In OPERATING TRANSFERS IN Revenues/Other Sources Expenditures by Category OPERATIONS & MAINTENANCE CAPITAL OUTLAY TRANSFERS Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year Fund Description 164,530 255,842 321,333 65,491 25.6% 128,336 192,909 119,388 (73,521) -38.1% - 1,748,615 - (1,748,615) -100.0% 292,866 2,197,366 440,721 (1,756,645) -79.9% 151,157 - 62,028 - 496,071 701,506 151,158 365,000 - 151,158 (131,071) (701,506) 100.0% -26.4% -100.0% 213,186 1,197,577 516,158 (681,419) -56.9% 79,680 3,026,610 999,789 3,106,290 (75,437) 4,106,079 (1,075,226) 999,789 -71.8% 32.2% 3,106,290 4,106,079 4,030,642 (75,437) -1.8% 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 in FY25-26 includes $365,000 budgeted for the replacement of the City's computers, network switch, phone system and the audio equipment at the Community Recreation Center amphitheater. Annual Operating Budget 1 127 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 330 - SUPPORT SERVICES FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Description Actuals Budget Budget Increase/ (Decrease) Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 341,356 429,895 387,827 (42,068) -9.8% Use of Money and Property INVESTMENT INTEREST 788 510 321 (190) -37.2% Revenues/Other Sources 342,144 430,405 388,148 (42,258) -9.80/0 Expenditures by Category SALARIES & BENEFITS 248,422 273,894 253,827 (20,067) -7.3% OPERATIONS & MAINTENANCE 107,387 134,000 134,000 0.0% Expenditures/Other Financing Uses 355,810 407,894 387,827 (20,067) -4.9% Net Revenues (13,666) 22,511 320 (22,191) -7.4% Fund Balance, Beginning of Year 13,811 145 22,656 22,511 15540.7% Fund Balance, End of Year 145 22,656 22,976 320 1.4% 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 expenditures are projected to decrease 7.3% due to fewer positions allocated to this Fund in FY25-26. 128 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 335 - SUPPORT SERVICES REPLACEMENT FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES Use of Money and Property INVESTMENT INTEREST Revenues/Other Sources Expenditures by Category OPERATIONS & MAINTENANCE CAPITAL OUTLAY Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year 33,101 28,165 30,881 2,716 9.6% 16,389 11,923 12,729 806 6.8% 49,490 40,088 43,610 3,522 8.80/0 42,394 - 42,200 42,200 100.0% - 13,600 30,000 16,400 120.6% 42,394 13,600 72,200 58,600 430.9% 7,097 26,488 (28,590) (55,078) 115.7% 378,901 385,998 412,485 26,488 6.9% 385,998 412,485 383,895 (28,590) -6.9% 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 funding for the annual replacement of the City's copiers. Annual Operating Budget 1 129 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 340 - FACILITIES FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Increase/ Description Actuals Budget Budget (Decrease) Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES Use of Money and Property INVESTMENT INTEREST Reimbursements OTHER REIMBURSEMENTS Revenues/Other Sources Expenditures by Category SALARIES & BENEFITS OPERATIONS & MAINTENANCE TRANSFERS Expenditures/Other Financing Uses Net Revenues Fund Balance, Beginning of Year Fund Balance, End of Year 1,648,283 1,703,247 1,645,947 (57,300) -3.4% 20,632 12,533 13,001 468 3.7% 24,000 48,000 24,000 (24,000) -50.0% 1,692,915 1,763,780 1,682,948 (80,832) -4.6% 551,526 1,117,389 - 620,666 1,087,752 606,326 691,687 954,260 - 71,022 (133,492) (606,326) 11.4% -12.3% -100.0% 1,668,915 2,314,743 1,645,947 (668,796) -28.90/0 24,000 582,326 (550,963) 606,326 37,001 55,363 587,964 (550,963) -18.4% -90.9% 606,326 55,363 92,364 37,001 66.8% 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 decreasing by 28.9% due to the one-time transfer of excess fund balance to Fund 350-Facilities Replacement in FY24-25. 130 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 350 - FACILITY REPLACEMENT FUND SUMMARY 2024-2025 2025-2026 2023-2024 Current Proposed Description Actuals Budget Budget Increase/ (Decrease) Increase/ Decrease Revenues by Source Licenses, Permits and Service Charges CHARGES FOR SERVICES 92,005 118,313 121,550 3,237 2.7% Use of Money and Property INVESTMENT INTEREST 45,259 88,524 111,755 23,230 26.2% Operating Transfers In OPERATING TRANSFERS IN - 606,326 - (606,326) -100.0% CONTRIBUTION FROM MEASURES 2,550,000 2,500,000 1,250,000 (1,250,000) -50.0% Revenues/Other Sources 21687,264 3,313,164 1,483,305 (1,829,859) -55.2% Expenditures by Category OPERATIONS & MAINTENANCE 87,338 - 87,338 87,338 100.0% CAPITAL OUTLAY 3,074 82,276 - (82,276) -100.0% TRANSFERS 604,731 2,722,395 1,000,000 (1,722,395) -63.3% Expenditures/Other Financing Uses 695,143 2,804,671 1,087,338 (1,717,333) -61.2% Net Revenues 1,992,122 508,493 395,967 (112,526) -58.0% Fund Balance, Beginning of Year 652,133 2,644,255 3,152,748 508,493 19.2% Fund Balance, End of Year 2,644,255 3,152,748 3,548,715 395,967 12.6% 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 include a transfer of $1,000,000 to the Capital Improvement Program for the City Facilities Rehabilitation project. Annual Operating Budget 1 131 CITY OF TEMECULA CAPITAL IMPROVEMENT PROGRAM FUND 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. 132 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget Funds: 210 - CAPITAL IMPROVEMENT PROGRAM FUND 2024-2025 2025-2026 2023-2024 Current Proposed Increase/ Description Actuals Budget Budget (Decrease) Revenues by Source Licenses, Permits and Service Charges QUIMBY FEES 987,936 DEVELOPMENT IMPACT FEES (515,300) Intergovernmental Revenues GRANTS 790,528 Reimbursements CAPITAL IMPROVEMENT PROGRAM 55,295,452 PECHANGA IGA 850,000 Operating Transfers In OPERATING TRANSFERS IN 4,596,467 CONTRIBUTION FROM MEASURES 11,388,867 Revenues/Other Sources 73,393,950 Expenditures by Category CIP 70,852,447 Expenditures/Other Financing Uses 70,852,447 Net Revenues 2,541,504 Fund Balance, Beginning of Year 6,702,714 Fund Balance, End of Year 9,244,218 Increase/ Decrease 2,587,966 1,516,240 (1,071,726) -41.4% 11,692,611 2,710,370 (8,982,241) -76.8% 4,133,528 120,000 (4,013,528) -97.1% 104,252,632 1,552,850 (102,699,782) -98.5% - - 0.0% 51,297,789 9,501,791 (41,795,998) -81.5% 34,454,272 8,809,109 (25,645,163) -74.4% 208,418,797 24,210,360 (184,208,437) -88.4% 207,707,379 26,594,817 (181,112,562) -87.2% 207,707,379 26,594,817 (181,112,562) -87.2% 711,418 9,244,218 (2,384,457) 9,955,636 (3,095,875) -87.8% 711,418 7.7% 9,955,636 7,571,179 (2,384,457) -24.0% 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. Annual Operating Budget 1 133 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 134 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES The City Council adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The QLMP defines the strategic priorities of Temecula's residents,E C OL �9 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.UR p This Ian was developed b engagingresidents businesses local institutions and regional p p Ypartners in an inclusive process. 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. CORE VALUES LEGEND: Safe & Prepared Community Transportation Mobility & Connectivity Healthy & Livable City Economic Prosperity 92 Sustainable & Resilient City Accountable & Responsive City Government Equity Annual Operating Budget 1 135 City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term ..l Performance Measure 2i2025-26 Actuals Target Target CITY COUNCIL `"OGo to Department Section kJBea sustainable community that embraces residents' of life Resident satisfaction with Temecula's crime rate, based on citizen survey 85% 85% 85% quality ©Ensure transparency in all aspects of City Number of City Council committee assignments 56 50-60 50-60 government Foster a healthy environment and prosperous Number of projects completed from the Quality 1 1 2 opportunities for all residents of Temecula of Life Master Plan CITY COUNCIL- COMMUNITY SUPPORT ""♦Go to Department Section Value the growth of non-profit organizations, Number of nonprofit organizations awarded churches, temples, mosques, and other places grants through the Community Service Funding 22 25-30 25-30 of worship and the City Council Grant Programs the growth of non-profit organizations, Total funding awarded to support nonprofit ®Value churches, temples, mosques, and other places programs through the Community Service $125,000 $125,000 $125,000 of worship Funding and City Council Grant Programs CITY MANAGER "'♦Go to Department Section Number of public outreach messages, advisories, ® Exhaust all methods of communication and press releases or posts (in print or electronically) 1649 , 1,400- 1,400- outreach between the City and its residents shared with the community containing City 1,800 1,800 information Percentage of annual budget that supports fire, Remain one of the safest cities in California police, first responders, and associated 55% 57% Greater and the nation infrastructure/technology, for the safety and than 50% protection of Temecula citizens and businesses community resiliency in Number of agreements and contracts reviewed ®Develop infrastructure, the economy, natural and signed Citywide to maintain, promote and 439 350-400 350-400 resources, and hazard mitigation preserve City assets/infrastructure Provide the highest quality of service at the Number of City Council Agendas developed and © most cost-effective rate while being fiscally brought forward with policies, programs or 27 20-22 20-24 responsible projects supported by the City Council for the long-term solvency of the City of Temecula 136 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term ..l Performance Measure 2i2025-26 �1[ FY FY FY Actuals Target Target dAL OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT -'4Goto Department Section Bea sustainable community that embraces Leading City efforts to attract and build higher Wresidents' quality of life education hub (MSJC and CSLISM), measured by 2 2 2 engagements Provide an entrepreneurial culture that offers Number of local business site visits, meetings a growing number of diverse high -paying jobs and ribbon cuttings (to foster business 64 30 40-50 relationships) ®Foster a healthy environment and prosperous opportunities for all residents of Temecula Number of no cost, professional workshops and trainings to the business community via the TVE2 268 50 75 Ensure transparency in all aspects of City Citywide social media posts - number of posts © across all platforms (Facebook, Instagram and 5 5 5 government Twitter) within one week CITY CLERK "4Go to Department Section ®Be the most sustainable city in Southern California Percentage of electronic delivery of agenda and materials 100% 100% 100% ®Be the most sustainable city in Southern California Number of electronic WebCA requests 1,130 1,125 1,277 ©Ensure transparency in all aspects of City Percentage of Public Records Act requests in statutory time 100% 100% 100% government processed period Ensure transparency in all aspects of City Number of Council, Board, Committee, © Commission, and employee positions for annual 68 68 68 government Conflict of Interest filings ©Ensure transparency in all aspects of City Percentage of open meeting / Public Notices on or before statutory time 100% 100% 100% government published period Annual Operating Budget 1 137 PERFORMANCE MEASURES Safe & Prepared Community ITransportation Mobility & Connectivity Healthy & Livable City Economic Prosperity City of Temecula Fiscal Year 2025-26 Annual Operating Budget Sustainable & Resilient City Accountable & Responsive City Government Equity Five -Year Long -Term ..l Performance Measure 2i2025-26 Actuals Target Target Provide the highest quality of service at the Percentage of positions cross -trained for o 0 most cost-effective rate while being fiscally departmental coverage 100% 100/ 100% responsible FINANCE -"#Go to Department Section Promote job growth in Temecula and nearby areas Number of business licenses issued 7,880 8,000 8,000 ©Promote innovation and adopt technology that enhances access to information and data Percentage of online business license renewals 81% 75% 85% ©Promote innovation and adopt technology that enhances access to information and data Number of invoices processed via electronic 7,531 7,000 7,000 payment ©Promote innovation and adopt technology that enhances access to information and data Number of vendors receiving electronic versus checks 691 400 500 payments paper HUMAN RESOURCES - MANAGEMENT `4Go to Department Section Promote innovation and adopt technology that enhances access to information and data Average number of days from opening of recruitment to hire 57 70 70 a flexible organization which Total number of seasonal employees that were ©Maintain responds to the changing needs and priorities successful in receiving the full hiring incentive 98% 0 95% 0 95/ of the community © Provide consistently professional services and information to customers and constituents Number of employment -related policies or created or revised 3 49 3 guidelines Support community -oriented policing and Percentage of employees receiving professional maximize community leadership in public development and training (includes mandatory NEW NEW 90% safety training) 138 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term ..l Performance Measure 2i i Actuals Target Target HUMAN RESOURCES- RISK MANAGEMENT ''♦Go to Department Section Provide the highest quality of service at the Percentage of interactive process meetings held rM most cost-effective rate while being fiscally for workers' compensation injuries for 100% 100% 100% responsible employees off work or on modified duty Percentage of employees participating in ® Support healthy and active lifestyles wellness programs (mental health support, New New 65% fitness challenges, financial wellness, etc.) Minimize impact to life, property and the Number of safety -related programs created or environment from natural hazards and revised New 3 3 emergency situations COMMUNITY DEVELOPMENT - CURRENT PLANNING & PERMIT CENTER ♦Go to Department Section Provide consistently professional services and information to customers and constituents Average customer service wait times (in minutes) for Building and Safety transactions 8.11 Less than 30 Less than 30 ©Provide consistently professional services and information to customers and constituents Average customer service wait times (in minutes) for Planning transactions 7.54 Less than 30 Less than 30 ©Promote innovation and adopt technology that enhances access to information and data Average number of business days for online inquiry response time for Planning 2 Less than 2 Less than 2 public the highest quality of service at the Percentage of Building Permits issued within 30 ©Provide most cost-effective rate while being fiscally days y 76 75 75 responsible the highest quality of service at the Average number of days from application to ©Provide most cost-effective rate while being fiscally issuance for Building Permits 27 30 30 responsible the highest quality of service at the Average number of business days for Planning ©Provide most cost-effective rate while being fiscally 26 21 21 responsible Case Reviews Annual Operating Budget 1 139 City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term ..2025-26 Actuals Target Target Provide the highest quality of service at the Average number of business days for submittal most cost-effective rate while being fiscally reviews for Temporary Use Permits 23 14 14 responsible the highest quality of service at the Average number of business days for submittal ©Provide most cost-effective rate while being fiscally reviews for Massage 21 21 21 responsible COMMUNITY DEVELOPMENT- LONG RANGE PLANNING '"4Goto Department Section Be a diverse community that values and Number of Housing Element Programs supports people of all ages, backgrounds, completed 4 4 4 cultures, disabilities and religious beliefs Establish a connected pedestrian, bicycle and equestrian transportation system Number of miles of bike lanes striped 2.8 5 2 COMMUNITY DEVELOPMENT- BUILDING & SAFETY "4Go to Department Section the highest quality of service at the Average number of business days for online ©Provide most cost-effective rate while being fiscally public inquiry response for Building and Safety 2 2 2 responsible a flexible organization which Average number of business days for inspection ©Maintain responds to the changing needs and priorities delay for Building and Safety 1 2 2 of the community ©Promote innovation and adopt technology that enhances access to information and data Percentage of online Building and Safety transactions 74% 75% 75% a flexible organization which ©Maintain � responds to the changing needs and priorities Number of inspections per person, per day 33.5 20 20 of the community COMMUNITY DEVELOPMENT- CODE ENFORCEMENT '"#Go to Department Section Promote innovation and adopt technology Average number of business days for response a that enhances access to information and data time of online public inquiries for Code 1 3 3 Enforcement 140 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity V "0 al ru Five -Year Long -Term ..2025-26 Actuals Target Target Provide effective enforcement of City zoning, Number of hours for turnaround time for graffiti building, fire and grading codes, and graffiti 48 48 48 abatement abatement nProvide effective enforcement of City zoning, Average number of business days for Code Case R building, fire and grading codes, and graffiti 8 30 30 abatement time open SARDA "4Go to Department Section a diverse community that values and Number of agreements with an affordable ®Be supports people of all ages, backgrounds, housing developer for the use of available Tax 0 1 1 cultures, disabilities and religious beliefs Allocation Bond proceeds COMMUNITY DEVELOPMENT- CDBG '"#Go to Department Section ©Ensure transparency in all aspects of City Number of objectives completed for the Five- Year Consolidated Plan 4 4 4 government ©Ensure transparency in all aspects of City Number of HUD timeliness tests met 1 1 1 government COMMUNITY DEVELOPMENT - ADMINISTRATION "'♦Coto Department Section Ensure transparency in all aspects of City government Average number of business days to fulfill records requests for all departments 5 12 12 PUBLIC WORKS -LAND DEVELOPMENT _-4Goto Department Section Provide consistently professional services and information to customers and constituents Average of business days to complete 1st plan check 15 10 13 ©Provide consistently professional services and information to customers and constituents Percentage of development inspections completed within 48 hours of requested time 90% 90% 90% Annual Operating Budget 1 141 City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term ..2025-26 Actuals Target Target Provide consistently professional services and Percentage of QLess appointments staff 85% 90% 90% information to customers and constituents responds to within 5 minutes of scheduled time PUBLIC WORKS -TRAFFIC ENGINEERING 'q#Go to Department Section Remain one of the safest cities in California Percentage of citizen requests staff responds to 12 and the nation within 5 business days 95% 95% 95% Remain one of the safest cities in California Percentage of traffic call -outs staff responds to Fes! and the nation within 2 hours to resolve traffic signal 95% 95% 95% malfunctions Maintain and improve our roadway network Average number of business days to complete 10 10 10 first plan check of traffic control plans PUBLIC WORKS -STREET MAINTENANCE --#Go to Department Section ®Bea sustainable community that embraces residents' life Total number of street trees trimmed each year 3,255 5,500 3,050 quality of Provide effective enforcement of City zoning, Percentage of graffiti reports completed within building, fire and grading codes, and graffiti 24 hours o 95% 0 95% 0 95% abatement Minimize impact to life, property and the Total number of storm drain inlets environment from natural hazards and inspected/cleaned 2,435 3,035 3,500 emergency situations Maintain and improve our roadway network Total number of street signs replaced, repaired and installed 1,160 2,140 1,300 Maintain and improve our roadway network Total square feet of asphalt repairs completed 53,370 185,000 100,000 each year 142 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Erw Five -Year Long -Term ..2025-26 Actuals Target Target Maintain and improve our roadway network Total linear feet of traffic lanes, bike lanes & 3,267,171 2,857,760 3,430,530 curbs painted PUBLIC WORKS -CAPITAL IMPROVEMENT PROGRAM '`4Go to Department Section ©Ensure transparency in all aspects of City Percentage of projects completed on schedule and within budget 75% 90% 90% government Provide the highest quality of service at the Total lane miles of pavement rehabilitation most cost-effective rate while being fiscally projects completed each year 87 12 10 ■"_ responsible PUBLIC WORKS - FACILITY MAINTENANCE "#Goto Department Section Be the most sustainable city in Southern California Number of facility energy efficiency upgrades each 10 10 10 performed year the highest quality of service at the Average number of facility service order requests ©Provide most cost-effective rate while being fiscally completed each year 900 1,650 2,000 responsible PUBLIC WORKS - PARKS MAINTENANCE - +Go to Department Section ®Be a sustainable community that embraces residents' quality of life Number of trees trimmed in parks, slopes and medians each year 3,091 2,500 3,200 ®Be the most sustainable city in Southern California Average number of park site energy efficiency lighting system conversions each 8 6 6 year © Provide consistently professional services and information to customers and constituents Average number of parks maintenance service order requests completed each 1,452 2,500 1,500 year the highest quality of service at the Average number of City park rehabilitation and ©Provide most cost-effective rate while being fiscally repair projects completed each year 10 10 6 responsible Annual Operating Budget 1 143 City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity ..l Performance Measure 2i2025-26 Five -Year Long -Term Er Actuals Target Target PUBLIC WORKS - STORMWATER '"♦Go to Department Section Bea sustainable community that embraces residents' of life Percentage of trash capture devices installed. Goal is 150 devices across five New New 85% quality per year, phases Be a sustainable community that embraces Percentage of City businesses inspected annually ® residents' quality of life to verify permit requirements and stormwater New New o 95% pollution compliance Be a sustainable communitythat embraces Percentage of Stormwater Best Management residents' quality of life Practices (BMPs) inspected annually to ensure New New o 70% these devices are functioning and effective SHERIFF'S OFFICE - ADMINISTRATION -'#Go to Department Section Remain one of the safest cities in California Number of management team with Advanced 1 8 7 �j and the nation Incident Command System training Provide consistently professional services and information to customers and constituents Number of fingerprint cards and live scans taken at the mall and substation 4,252 3,400 4,500 SHERIFF'S OFFICE - INVESTIGATIONS/SPECIAL TEAMS ""#Goto Department Section 13 Remain one of the safest cities in California and the nation Reduce property crimes Reduce by o 10% Reduce by 0 10% Reduce by 0 10% SHERIFF'S OFFICE- TRAFFIC ENFORCEMENT -+Go to Department Section Be a sustainable community that embraces residents' quality of life Number of high visibility/ traffic checkpoints 4 4 20 Maintain and improve our roadway network Number of DUI arrests 382 500 500 144 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity WrW Five -Year Long -Term ..2025-26 Actuals Target Target Maintain and improve our roadway network Number of traffic collision investigations 605 900 700 SHERIFF'S OFFICE -PATROL SERVICES 'q4GO to Department Section ® Bea sustainable community that embraces residents' of life Number of overall calls for Police service 70,305 85,000 85,000 quality J Remain one of the safest cities in California and the nation Percentage of patrol officers maintaining 24- hour skills training 90% 100% 100% perishable Minimize impact to life, property and the Average response time (in minutes) for priority 1 environment from natural hazards and calls from the time it is dispatched to the time 5.0 4.5 4.0 emergency situations officers arrive FIRE -EMERGENCY MANAGEMENT -'"#Go to Department Section Support community oriented policing and Number of community outreach events maximize community leadership in public conducted 12 5 10 safety Minimize impact to life, property and the Percentage of employees assigned to the environment from natural hazards and Management Team who are trained in Incident Mana g 20% 60% 60% the roles, responsibilities, and functions of the emergency situations Emergency Operations Center Minimize impact to life, property and the Number of external agreements developed to environment from natural hazards and support the execution of the Emergency 4 3 3 emergency situations Management Program Minimize impact to life, property and the Percentage of Temecula Population enrolled in environment from natural hazards and the Citywide mass notification system ° 8/° ° 17% ° 17/0 emergency situations Support community oriented policing and Number of citizens trained in Community maximize community leadership in public Emergency Response Team training (CERT) 122 150 150 safety Annual Operating Budget 1 145 City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term ..l Performance Measure 2i i Actuals Target Target FIRE -EMERGENCY OPERATIONS '"OGo to Department Section Support community oriented policing and Number of citizens trained in CPR, First Aid, and maximize community leadership in public healthcare provider CPR, and Stop the Bleed 900 900 900 safety Program Minimize impact to life, property and the Average response time (in minutes) to City environment from natural hazards and emergency incidents 5 5 5 emergency situations FIRE -FIRE MARSHAL "+Go to Department Section Minimize impact to life, property and the Number of Fire Department plan reviews environment from natural hazards and performed 6,000 5,500 5,000 emergency situations Minimize impact to life, property and the Number of Fire Department new construction & ✓ environment from natural hazards and tenant improvement inspections performed 5,000 5,000 5,000 emergency situations Minimize impact to life, property and the environment from natural hazards and Number of state mandated inspections 2,500 2,600 3,000 emergency situations Minimize impact to life, property and the ✓ environment from natural hazards and Number of annual inspections completed 3,000 4,000 4,000 emergency situations TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -COMMUNITY SERVICES ` 4Go to Department Section Bea sustainable community that embraces Number of digital media communications, ® residents' quality of life including Around & About Temecula, Park 25 30 30 Adventure series, Alumni Project, and more Provide accessible sports, recreational, ® cultural, health/therapeutic and community Maintain facility rentals >_85% of availability 85% o 85/0 0 85/ engagement facilities, programs and resources for all Temecula residents Provide accessible sports, recreational, ®cultural, health/therapeutic and community Maintain 75% participation rate in contract 75% 75% 75% engagement facilities, programs and classes resources for all Temecula residents 146 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term EK .. i i Actuals Target Target TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -RECREATION `",�Go to Department Section Provide accessible sports, recreational, k2cultural, health/therapeutic and community Monthly attendance of teen gym at the CRC 300 300 300 engagement facilities, programs and resources for all Temecula residents Provide accessible sports, recreational, ®cultural, health/therapeutic and community Maintain field allocation at >_ 90% of availability 100% 100% 100% engagement facilities, programs and resources for all Temecula residents Support community oriented policing and Number of special needs participants provided maximize community leadership in public with swim lessons and water safety programs 141 140 140 safety TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - CITYWIDE EVENTS `4Goto Department Section Be a diverse community that values and Number existing community events refreshed supports people of all ages, backgrounds, 2 2 2 cultures, disabilities and religious beliefs per year Exhaust all methods of communication and Number of social media posts and reels per year outreach between the City and its residents to promote City activities and to obtain more 75 75 75 community participation TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - ARTS & CULTURE `4Go to Department Section Partnerships with local vendors to enhance ® Be a sustainable community that embraces patron theater experiences in Old Town with 15 15 15 residents' quality of life pre- and post -performance audience engagement techniques ®Exhaust all methods of communication and outreach between the City and its residents Number of social media posts per year 270 450 285 ©Provide consistently professional services and information to customers and constituents Number of active volunteers at the Temecula Valley Museum 7 10 12 Annual Operating Budget 1 147 City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity ore 5 ..2025-261 Value Five -Year Long -Term Actuals Target Target TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -HUMAN SERVICES "4Go to Department Section Provide accessible sports, recreational, ®cultural, health/therapeutic and community Resource opportunities 30 35 37 engagement facilities, programs and resources for all Temecula residents Provide recreational and other activities for youth Human Service programs for at -risk youth 35 37 40 ®Foster a healthy environment and prosperous opportunities for all residents of Temecula Number of Temecula resident resource connections New New 1,000 ® Be a sustainable community that embraces residents' quality of life. Number of encampments cleared New New 150 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -ADMINISTRATION ` 4Go to Department Section ®Foster a healthy environment and prosperous opportunities for all residents of Temecula Complete departmental initiatives or analysis 6 6 6 Provide accessible sports, recreational, ®cultural, health/therapeutic and community Collaborate with Riverside County Law Library to 3 4 4 engagement facilities, programs and offer law related classes to the public resources for all Temecula residents Provide accessible sports, recreational, ®cultural, health/therapeutic and community Computer classes provided in the technology 12 12 12 engagement facilities, programs and homework center at the Temecula Public Library resources for all Temecula residents ©Ensure transparency in all aspects of City government Support City Manager's Office in Special Projects 8 8 8 INFORMATION TECHNOLOGY (IT) "q+Go to Department Section ©Promote innovation and adopt technology that enhances access to information and data Number of City Council meetings supported with audiovisual services 24 24 24 148 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PERFORMANCE MEASURES QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity W Economic Prosperity Five -Year Long -Term ..2025-26 Actuals Target Target Promote innovation and adopt technology that enhances access to information and data Number of updates to the Temecula Outreach Channel 3 and YouTube 106 100 100 the highest quality of service at the Percentage of computers that need to be ©Provide most cost-effective rate while being fiscally replaced to adhere to the Computer Lifecycle 20% 20% 20% responsible Replacement Program the highest quality of service at the Reduce the number of open Helpdesk tickets to ©Provide most cost-effective rate while being fiscally an average of 75 37 40 40 responsible INFORMATION TECHNOLOGY (IT) -SUPPORT SERVICES -'"+Go to Department Section the highest quality of service at the Average number of hours to resolve Helpdesk ©Provide most cost-effective rate while being fiscally tickets for out of service copiers 2.5 4 4 responsible Annual Operating Budget 1 149 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 150 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget DEPARTMENTAL INFORMATION The following section provides detailed information for each Department, including the Department's Mission, Services, Organizational Chart, 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. Annual Operating Budget 1 151 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 152 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 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: Safe & Prepared Community Transportation Mobility & Connectivity aHealthy & Livable City Economic Prosperity SERVICES City Council Sustainable & Resilient City Accountable & Responsive City Government ® Equity • 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, as budgeted Citywide, to multiple selected nonprofit organizations that benefit the residents of Temecula. 1 46 j E) Organizational Chart Expenditures by Category Personnel Performance Measures 154 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget ACCOMPLISHMENTS Prior fiscal year accomplishments from the City Council include: City Council • Provided an enhanced level of economic resource information, outreach, and assistance to citizens and businesses to support job creation and a prosperous, vibrant local economy within Temecula. (Economic Prosperity) • Continued to make public safety a top priority by maintaining strategically staffed and structured Sheriff's Office and Fire Department, and equipping public safety personnel with modern technology, equipment, and apparatuses. (Safe & Prepared Community) • Provided public outreach as a priority, engaging with citizens and businesses via social media, e-blasts, Channel 3, the City of Temecula website, Citywide newsletters, Press Releases, the Guide to Leisure Activities, presentations to the community, advertisements, and other means of communication. (Accountable & Responsive City Government) • Introduced, implemented and communicated the Mayor's initiatives throughout the year. This included the Mayor's State of the City messages, such as public safety priorities including E-Bike safety awareness and regulations, Public Works projects including capital improvement projects and circulation infrastructure, business support opportunities for new/existing businesses and entrepreneurs, community events, promotion of the Sunset Market, and more. (Accountable & Responsive City Government) • Provided resources and assistance to businesses and entrepreneurs within the City of Temecula that benefit citizens of Temecula in terms of job creation and economic prosperity. (Economic Prosperity) Community Support • Provided grant funding to non-profit organizations that provide services to the citizens of Temecula through the Community Service Funding and City Council Grant Programs. (Healthy & Livable City) i� ` n� �i = ndl-- Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget I 155 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from the 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. This includes providing grants to assist residents and businesses. (Economic Prosperity) • Continue to make public safety a top priority by maintaining strategically staffed and structured Sheriff's Office and Fire Department, and equipping public safety personnel with modern technology, equipment, and apparatuses. (Safe & Prepared Community) • Continue to prioritize public outreach. Engage with citizens and businesses via social media, e-blasts, Channel 3, the City of Temecula website, Citywide newsletters, Press Releases, the Guide to Leisure Activities, presentations to the community, and other means of communication. (Accountable & Responsive City Government) • Introduce, implement, and communicate the Mayor's initiative to preserve the quality of life for all residents by supporting public safety, investing in youth and recreation, and fostering a strong community where families can thrive for generations. Specifically focused on ensuring public safety remains a top priority, and promoting transparency and civic engagement through open communication and public education about City government. (Accountable & Responsive City Government) • Provide resources and assistance to businesses and entrepreneurs within the City of Temecula that benefit citizens of Temecula in terms of job creation and economic prosperity. (Economic Prosperity) Community Support • Through Community Service Funding and the City Council Grant Program, fund non-profit organizations that will assist and provide services to the citizens of Temecula. (Healthy & Livable City) Organizational Chart � n � n Expenditures by Category Personnel Performance Measures 156 1 Annual Operating Budget ORGANIZATIONAL CHART Term:2018-2026 Mayor: 2023 Mayor Pro Tem:2022 TCSD President: 2025 TCSD President: 2024 TCSD President: 2021 TCSD Vice President: 2022 TCSD Vice President: 2020 City of Temecula Fiscal Year 2025-26 Annual Operating Budget Term:2020-2028 Term:2022-2026 Terms: 2014-2022, 2024-2026 Mayor Pro Tern: 2025 Mayor: 2025 Mayor: 2022 TCSD Vice President: 2024 Mayor Pro Tern: 2024 Mayor:2018 TCSD Vice President:2023 Mayor Pro Tern: 2021 Mayor Pro Tem: 2017 Term:2016-2028 Mayor: 2024 Mayor: 2020 TCSD President:2023 TCSD President: 2022 rrcn v;.-- ❑..,mow--.-'025 021 Annual Operating Budget 1 157 City of Temecula Fiscal Year 2025-26 l Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 CITY COUNCIL 100 SALARIES & BENEFITS Total 123,033 188,260 219,665 31,406 16.68% OPERATIONS & MAINTENANCE Total 136,148 217,667 188,206 (29,461)-13.53% INTERNAL SERVICE FUND ALLOCATIONS Total 325,042 327,254 334,577 7,323 2.24% Division Total 584,223 733,180 742,448 9,268 1.26% COMMUNITY SUPPORT 101 OPERATIONS & MAINTENANCE Total 120,000 125,000 115,000 (10,000) -8.0% Division Total 120,000 125,000 115,000 (10,000) -8.0% ANALYSIS/COMMENTS City Council: City Council expenditures are increasing by 1.26% due to the adoption of the Council Compensation Ordinance on October 25, 2023. This increase in Councilmembers' monthly compensation impacted only half of 2024-25, whereas 2025-26 reflects a full fiscal year at the increased rate. Internal Service Fund Allocations reflect an increase as a result of higher insurance premiums and technology costs, which is offset by a reduction in Other Outside Services and Postage & Packaging costs. Community Support: Community Support expenditures reflect a decrease of 8% due to the reduction of Community Grants to meet budget targets. �J 158 1 Annual Operating Budget PERSONNEL ALLOCATIONS CITY COUNCIL Council Members Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 5.00 5.00 5.00 - 5.00 1 5.00 5.00 - L� Annual Operating Budget 1 159 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 160 1 Annual Operating Budget CITY OF TEMECULA CITY MANAGER'S OFFICE Annual Operating Budget 1 161 City of Temecula Fiscal Year 2025-26 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 • Ensure the QLMP goals and citizen priorities adopted by the City Council are achieved through Citywide strategic planning, policy implementation and budget development. • Keep the City Council informed about City operations and important community issues that impact the City. • Implement City Council's long-term and short-term directives. • Provide prudent leadership and clear policy direction to City executives and staff Citywide concerning organizational decisions to efficiently provide the highest quality of public services. Office of Public Information and Economic Development Division • Support existing businesses and encourages their continued prosperity and growth. • Manage an ongoing marketing/branding program to attract commercial and industrial development, entrepreneurs, and innovative startups. • Administer the business incubator and resource center facility to foster new business formation and provide resources to new and existing businesses. • Work to attract new industries that bring an enhanced tax base, quality jobs, and new capital into the community. • Maintain strong relationships with educational, business and community leaders, and key partners (TVCC, VTV, EDC, SBDC, IEWBC, and IECE) to continue to maximize opportunities. • Facilitate smooth processing and problem solving for local businesses and businesses looking to expand in or relocate to Temecula. • Manage 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. • Assist other departments and other public agencies with marketing, social media, branding campaigns and press releases. • Maintain strong focus on engaging the business community through site visits, meetings and ribbon cuttings. • Support small businesses by guiding them through the permit process to obtain their business license. • Produce informational videos regarding infrastructure updates and progress. ^�— n a (D Organizational Chart Expenditures by Category Personnel Performance Measures 162 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget ACCOMPLISHMENTS Prior fiscal year accomplishments from the City Manager's Office include: General Administration Division • Updated the City's General Plan. (Accountable & Responsive City Government) • Implemented fiscal policies and Council priorities, while maintaining a balanced budget. (Sustainable & Resilient City) • Introduced, implemented and communicated the Mayor's initiatives as presented in the Mayor's State of the City, including E-Bike safety awareness and regulations, public safety, Public Works infrastructure and circulation, support for local businesses and entrepreneurs, community events and the new Sunset Market, and more. (Accountable & Responsive City Government) • Provided excellent governmental transparency and public outreach to citizens and businesses via social media, e-blasts, Channel 3, the City website, presentations to the community, press releases, Citywide newsletters, and the Guide to Leisure Activities. (Healthy & Livable City) • Maintained public safety as a top priority with strategically staffed and structured Sheriff's Office and Fire Department. (Safe & Prepared Community) Office of Public Information and Economic Development Division • Produced the 2025 Temecula Magazine. (Economic Prosperity) • Created, planned, and produced the annual State of the City (SOTC) event and related activities in 2025. (Economic Prosperity) • Facilitated business growth and boosted City economics via creative social media campaigns. (Economic Prosperity) • Expanded the number of tenants located within and programs offered at the TVE2. (Economic Prosperity) Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 163 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from the City Manager's Office include: General Administration Division • Continue to update the City's General Plan. (Accountable & Responsive City Government) • Implement fiscal policies and Council priorities, while maintaining a balanced budget. (Sustainable & Resilient City) • Introduce, implement and communicate the Mayor's initiatives as presented in the Mayor's State of the City, including public safety, public works infrastructure and circulation, support for local businesses and entrepreneurs, community events, and more. (Accountable & Responsive City Government) • Provide excellent governmental transparency and public outreach to citizens and businesses via social media, e-blasts, Channel 3, the City website, presentations to the community, press releases, Citywide newsletters, and the Guide to Leisure Activities. (Healthy & Livable City) • Maintain public safety as a top priority with strategically staffed and structured Sheriff's Office and Fire Department. (Safe & Prepared Community) Office of Public Information and Economic Development Division • Produce the 2026 Temecula Magazine. (Economic Prosperity) • Create, plan and produce the annual State of the City (SOTC) address and related activities in 2026. (Economic Prosperity) • Facilitate business growth and boost City economics via creative social media campaigns. (Economic Prosperity) • Grow the number of tenants located within and programs offered at the TVE2. (Economic Prosperity) Organizational Chart Expenditures by Category Personnel Performance Measures 164 1 Annual Operating Budget Genera! Administration Support to Mayor and City Council Intergovernmental QLMP Federal Legislation and Advocacy Community Funding Special Projects ► Vk J Aaron Adams City Manager c Office of Public Information and Economic Development Business Attraction & Retention Citywide Public Information & Marketing Business Ombudsman Community Liaison Temecula Valley Entrepreneur's Exchange Social Media City of Temecula Fiscal Year 2025-26 l Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 CITY MANAGER 110 SALARIES & BENEFITS Total 1,378,739 1,999,435 2,057,408 57,973 2.9% OPERATIONS & MAINTENANCE Total 207,043 227,209 233,619 6,410 2.82% INTERNAL SERVICE FUND ALLOCATIONS Total 482,178 477,956 505,451 27,495 5.75% Division Total 2,067,960 2,704,600 2,796,478 91,878 3.4% OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT- BUSINESS INCUBATOR RESOURCE SALARIES & BENEFITS Total 163,920 175,229 312,597 137,368 78.39% OPERATIONS & MAINTENANCE Total 21,208 19,869 15,046 (4,823)-24.27% INTERNAL SERVICE FUND ALLOCATIONS Total 44,502 117,993 167,446 49,453 41.91% Division Total 229,629 313,091 495,089 181,999 58.13% OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT 111 SALARIES & BENEFITS Total 849,014 855,245 774,447 (80,798) -9.45% OPERATIONS & MAINTENANCE Total 460,049 512,045 433,601 (78,444)-15.32% INTERNAL SERVICE FUND ALLOCATIONS Total 237,622 254,562 224,692 (29,870)-11.73% Division Total 1,546,685 1,621,852 1,432,740 (189,112)-11.66% ANALYSIS/COMMENTS City Manager: City Manager expenditures reflect a 3.4% increase due to a combination of higher Internal Service Fund Allocations and the calculated cost of living adjustments in accordance with the City's labor agreements. Office of Public Information and Economic Development: Office of Public Information and Economic Development divisions' expenditures reflect a net zero impact due to a combination of higher Internal Service Fund Allocations, reallocated staff, and reductions to the City's Promotional and Banner Programs to meet budget targets. LJ 166 1 Annual Operating Budget PERSONNEL ALLOCATIONS CITY MANAGER Assistant City Manager Assistant to the City Manager City Manager Deputy City Manager Executive Assistant Senior Office Specialist Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 1.00 1.00 1.00 - 0.65 0.50 0.50 - 1.00 1.00 1.00 - - - 1.00 1.00 1.00 1.00 1.00 - - 1.00 1.00 - 3.65 1 4.50 5.50 1 1.00 OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT Administrative Assistant 1.00 1.00 1.00 - Assistant to the City Manager 0.35 0.50 0.50 - Economic Development Manager 1.00 1.00 1.00 - Management Analyst 2.00 1.00 - (1.00) Multimedia Coordinator - - 1.00 1.00 Multimedia Specialist 1 1.00 - - - Multimedia Specialist 11 - 1.00 - (1.00) Senior Management Analyst - 1.00 2.00 1.00 Senior Office Specialist 1.00 - - - 5.50 - Total 6.35 5.50 Grand Total 10.00 1 10.00 1 11.00 1 1.00 *This increase reflects a reallocation of 1.00 FTE that was previously allocated to the Community Development Department. L_J Annual Operating Budget 1 167 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 168 1 Annual Operating Budget y •4� r - a ' � f 1 3 ..� C—i City of Temecula Fiscal Year 2025-26 Annual Operating Budget MISSION The City Clerk's office is committed to serving the needs of the residents 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 2024 General Municipal Election for local ballot measure regarding term limits and officeholders for Districts 1, 2 and 4. (Accountable & Responsive City Government) • Conducted 2024 recruitment and appointment process for multiple positions with expiring terms on the City's boards, committees, and commissions. (Accountable & Responsive City Government) • Implemented new process for presentation of proclamations at Race, Equity, Diversity and Inclusion (REDI) Commission and facilitated annual City Council direction for REDI Commission. (Equity) • Facilitated review and adoption of annual legislative platform, developed legislative priority materials, and conducted related legislative action days in Sacramento. (Accountable & Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 170 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from the City Clerk's Office include: • Facilitate approval of the consolidation of the 2026 General Municipal Election for the City with the County of Riverside and prepare for the candidate nomination period for Districts 1, 3 and 5 to open in Summer 2025. (Accountable & Responsive City Government) • Facilitate review and adoption of annual legislative platform, develop legislative priority materials, and conduct related legislative action days in Sacramento. (Accountable & Responsive City Government) • Facilitate comprehensive review of the City's existing board, committee, and commission structure to ensure alignment with the community's current needs and implement City Council direction regarding the same. (Accountable & Responsive City Government) • Facilitate approval of the City's Title VI Program by the City Council, serve as Title VI Coordinator, and implement related requirements regarding access to Citywide programs and services for all segments of the community, including those with physical disabilities and limited English proficiency. (Equity) e P RW- Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 171 ORGANIZATIONAL CHART L_J City of Temecula Fiscal Year 2025-26 Annual Operating Budget 172 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 CITY CLERK 120 SALARIES & BENEFITS Total 968,274 1,053,032 1,091,896 38,864 3.69% OPERATIONS & MAINTENANCE Total 152,922 303,553 241,731 (61,822) -20.37% INTERNAL SERVICE FUND ALLOCATIONS Total 356,872 363,574 321,822 (41,752) -11.48% Division Total 1,478,068 1,720,159 1,655,449 (64,709) -3.76% ANALYSIS/COMMENTS City Clerk: City Clerk expenditures are projected to decrease by 3.76% due to expected lower Election Costs and Other Outside Services, and decreased Internal Service Fund Allocations as a result of the removal of unused equipment, offset by the calculated cost of living adjustment per the City's labor agreements. PERSONNEL ALLOCATIONS CITY CLERK Deputy City Clerk Director of Legislative Affairs/City Clerk Management Assistant Records Manager Records Technician Total Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 - 5.00 1 5.00 5.00 - L_J Annual Operating Budget 1 173 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 174 1 Annual Operating Budget CITY OF TEMECULA CITYATTOPNEY Annual Operating Budget 1 175 City of Temecula Fiscal Year 2025-26 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 L �f A Expenditures by Category Personnel *N/A for City Attorney Performance Measures *N/A for City Attorney 176 1 Annual Operating Budget ORGANIZATIONAL CHART City of Temecula Fiscal Year 2025-26 Annual Operating Budget Annual Operating Budget 1 177 City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 CITY ATTORNEY 130 OPERATIONS & MAINTENANCE Total 922,084 1,115,000 1,115,000 0 0.0% Division Total 922,084 1,115,000 1,115,000 0 0.0% ANALYSIS/COMMENTS City Attorney: City Attorney expenditures are unchanged compared to the prior year. 178 1 Annual Operating Budget CITY OF TEMECULA FINANCE Annual Operating Budget 1 179 City of Temecula Fiscal Year 2025-26 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 Sheriff 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 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 and Tax Allocation Bonds. • 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: • Continued the implementation of the new Citywide financial accounting system. (Accountable & Responsive City Government) • Initiated the implementation of the City's new financial accounting system's payroll module. (Accountable & Responsive City Government) • Received professional association awards for the City's Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Accountable & Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 180 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Continued to identify operational efficiencies within the Finance Department to utilize technology and streamline systems. (Accountable & Responsive City Government) • Monitored the City's financial position as it relates to the Debt/Liability Paydown Strategy and provided recommendations to the City Council if additional payments were feasible to expedite the reduction in the unfunded pension liability. (Accountable & Responsive City Government) GOALS AND OBJECTIVES Current fiscal year goals from the Finance Department include: • Continue the implementation of the City's new financial accounting system's payroll module. (Accountable & Responsive City Government) • Receive professional association awards for the City's Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Accountable & Responsive City Government) • Continue to identify operational efficiencies within the Finance Department to utilize technology and streamline systems. (Accountable & Responsive City Government) • Monitor the City's financial position as it relates to the Debt/Liability Paydown Strategy and provide recommendations to the City Council if additional payments are feasible to expedite the reduction in the unfunded pension liability. (Accountable & Responsive City Government) • Conduct a Request for Proposals to secure a new independent auditing firm. (Accountable & Responsive City Government) • Conduct a Request for Proposals for an update to the Citywide Cost Allocaton Plan and User Fee Study. (Accountable & Responsive City Government) • Update long-range financial and strategic plans for all major operating funds to ensure ongong fiscal solvency. (Accountable & Responsive City Government) III i nap - Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 181 Procurement Purchasing Contracts Y Jennifer Hennessy Director of Finance General Debt Accounting Administration Accounts Community Payable Facility District Administration Accounts Receivable/ SARDA Cashiering MAdministration Payroll Financial Reporting C/ Treasury M Budgeting Investments _ Operating Capital Banking Improvement Program Long -Term Reporting # Forecasting City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 FINANCE 140 SALARIES & BENEFITS Total 2,915,194 3,142,935 3,400,086 257,151 8.18% OPERATIONS & MAINTENANCE Total 226,737 325,917 279,737 (46,180) -14.17% INTERNAL SERVICE FUND ALLOCATIONS Total 770,508 745,068 788,131 43,063 5.78% CAPITAL OUTLAY Total 0 33,000 0 (33,000) -100.0% Division Total 3,912,440 4,246,920 4,467,954 221,034 5.2% ANALYSIS/COMMENTS Finance: Finance department expenditures reflect an increase of 5.2% due to the transfer of one Authorized position to the Finance department from the Public Works Department, offset by a reduction in overall Operations & Maintenance costs to meet budget targets, and no Capital Outlay requests for FY25-26. L_J Annual Operating Budget 1 183 PERSONNEL ALLOCATIONS riwinw14-r Accountant I Accounting Assistant Accounting Assistant - Cashier Accounting Technician 1/11 Assistant Director of Finance Director of Finance Finance Manager Fiscal Services Manager Management Analyst Senior Accountant (Confidential) Senior Accounting Technician Senior Accounting Technician (Confidential) Total COMMUNITY FACILITY DISTRICTS Director of Finance Finance Manager Fiscal Services Manager Total Grand Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 1.00 1.00 2.00 1.00 1.00 1.00 1.00 - 2.00 2.00 2.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 0.96 0.96 - 0.88 1.00 1.00 - 1.85 1.86 1.86 - 1.00 2.00 2.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 - 2.00 1.00 1.00 - 14.73 1 14.82 1 15.82 1 1.00 - 0.04 0.04 - 0.12 - - - - 0.14 0.14 - 0.12 0.18 0.18 - 14.85 15.00 16.00 1.00 *This increase reflects a reallocation of 1.00 FTE that was previously allocated to the Public Works Department. LJ 184 1 Annual Operating Budget CITY OF TEMECULA :l1Ju1\O I U 2 Prol Is] Ws] afto1_\101W RISK MANAGEMENT Annual Operating Budget 1 185 City of Temecula Fiscal Year 2025-26 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 the City's comprehensive employee benefit program for eligible employees and retirees; update and maintain employee data in Human Resource Information System (HRIS)/payroll system; ensure compliance with the Affordable Care Act (ACA) and its mandates to offer and report offers of health coverage to eligible employees; manage employee leave and disability benefit programs ensuring regulatory compliance with federal and state laws; interpret and apply CaIPERS regulations; 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. • Employee Relations: Administer performance evaluation process and advise management on performance management issues; counsel and advise employees on personnel matters; oversee disciplinary actions and Organizational Chart Expenditures by Category Personnel Performance Measures 186 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 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: 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. • Employee Training: Administer the City's mandated and elective training programs to comply with federal, state, and local requirements. To empower employees to discover and pursue a path to a fulfilling career through professional development. • 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. • Contract Compliance: Administer contract compliance for the City's agreements ensuring all agreements adhere to rules and regulations to minimize operational risk. Monitor vendor compliance, evaluate potential issues and put safety measures in place to protect the City's interests. n r Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 187 City of Temecula Fiscal Year 2025-26 Annual Operating Budget ACCOMPLISHMENTS Prior fiscal year accomplishments from Human Resources, Risk and Emergency Management include: Human Resources Management • Continued to update employment related policies and Administrative Guidelines. (Accountable & Responsive City Government) • Facilitated and implemented NEOGOV eForms module which will create a modern electronic personnel file system. (Accountable & Responsive City Government) Risk Management • Continued to develop, implement, and update Citywide safety training programs (to prevent workplace injuries and illnesses) through June 2025. (Safe & Prepared Community) • Continued to implement the City's Employee Wellness Program and provide information, opportunities and events for all City employees through June 2025. (Accountable & Responsive City Government) • Continued with the Hepatitis A&B Vaccination program for all exposed current City staff and new hires based on job exposure through June 2025. (Safe & Prepared Community) • Maintained the City's Cost Recovery Program (for costs associated with damage to City -owned property) for all affected City departments through June 2025. (Accountable & Responsive City Government) • Updated the City's Safety Footwear Allowance language in the MOU and entered into an agreement with a safety footwear provider to ensure all exposed employees are provided with compliant safety footwear. (Safe & Prepared Community) • Collaborated with Emergency Management, Human Resources, Riverside County Sheriff, and Fire on content to create and implement the Workplace Violence Prevention Plan in accordance with SB 553. (Safe & Prepared Community) GOALS AND OBJECTIVES Current fiscal year goals from Human Resources, Risk and Emergency Management include: Human Resources Management • Produce quarterly spotlights to educate employees on current benefit offerings, HR services, and other topics of interest. (Accountable & Responsive Government) • Design and implement initiatives to enhance and maintain high job satisfaction among City employees. (Accountable & Responsive City Government) • Facilitate the design, structure, content and workflows in the new HRIS system. (Accountable & Responsive City Government) • Complete the personnel file scanning project to digitize paper records, enhancing efficiency, reducing paper waste and optimizing resource management. (Accountable & Responsive City Government) � 1� = n n a Organizational Chart Expenditures by Category Personnel Performance Measures 188 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Continue enhancing NEOGOV modules to digitize HR forms, streamline processes, and create a centralized hub for electronic employee documents, improving efficiency and accessibility. (Accountable & Responsive City Government) Risk Management • Continue to develop, implement, and/or update Citywide safety training programs (to prevent workplace injuries and illnesses) through June 2026. (Safe & Prepared Community) • Continue to deliver the City's Employee Wellness Program, offering information, opportunities and events for all City employees through June 2026. (Accountable & Responsive City Government) • Maintain the Hepatitis A&B Vaccination program for all current City staff and new hires, ensuring coverage based on job -related exposure through June 2026. (Safe & Prepared Community) • Continue to maintain the City's Cost Recovery Program for damages to City -owned property, for all affected City departments through June 2026. (Accountable & Responsive City Government) • Continue administering the City's Safety Footwear Program, facilitating an annual on -site safety footwear event in partnership with Boot World, and ensuring all exposed employees receive compliant safety footwear through June 2026. (Safe & Prepared Community) • Continue to monitor the Workplace Violence Prevention Program at City worksites, in accordance with the City's Workplace Violence Prevention Plan, through June 2026. (Safe & Prepared Community) a - _:_i.J ILJ 41 n r� Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 189 Isaac Garibay Director of Human Resources and Risk Management Human Resources Risk Management Administration Insurance Classification and Genera[ Liability Compensation Employee Benefits Workers' Compensation Recruitment, Selection, Employee Safety and Retention Organizational Claims Administration Development and Training Risk Exposure Employee Relations - Employee Wellness Program Labor Relations Cost Recovery c City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 HUMAN RESOURCES 150 SALARIES & BENEFITS Total 971,479 1,027,931 1,136,731 108,800 10.58% OPERATIONS & MAINTENANCE Total 586,069 937,564 912,028 (25,536) -2.72% INTERNAL SERVICE FUND ALLOCATIONS Total 268,437 262,136 339,881 77,745 29.66% Division Total 1,825,985 2,227,631 2,388,640 161,008 7.23% ANALYSIS/COMMENTS Human Resources Management: Human Resources expenditures are projected to increase by 7.23% due to a combination of higher Internal Service Fund Allocations, reclassed personnel, and the calculated cost of living adjustments in accordance with the City's labor agreements, offset by a reduction in consulting services and conferences to meet budget targets. PERSONNEL ALLOCATIONS HUMAN RESOURCES Assistant Director of HR/Risk Management Director of HR/Risk Management Human Resources Technician II Human Resources Supervisor Management Analyst Management Assistant (Confidential) Senior Management Analyst Total Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr - - 1.00 1.00 0.50 0.50 0.50 - 2.00 2.00 - (2.00) - - 1.00 1.00 - - 1.00 1.00 0.40 0.90 1.10 0.20 2.20 2.10 0.10 (2.00) 5.10 5.50 4.70 (0.80) *This decrease reflects a reallocation of 0.35 FTE to the Insurance Fund, and 0.45 to the Workers' Compensation Fund. L_J Annual Operating Budget 1 191 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 192 1 Annual Operating Budget CITY OF TEMECULA COMMUNITY DEVELOPMENT .!A* Annual Operating Budget 1 193 City of Temecula Fiscal Year 2025-26 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. 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. Organizational Chart Expenditures by Category Personnel Performance Measures 194 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 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. 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. Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 195 City of Temecula Fiscal Year 2025-26 Annual Operating Budget ACCOMPLISHMENTS Prior fiscal year accomplishments from Community Development include: Long Range Planning • Initiated the fourth phase of the General Plan Update. (Accountable & Responsive City Government) Current Planning and Permit Center • Online public inquiries for Planning averaged a response time of less than one day (excluding weekends and holidays). (Economic Prosperity) Building & Safety • Maintained 75% of building permit transactions were conducted online. (Economic Prosperity) Code Enforcement • Maintained an average Code Case open date rate of less than 60 days. (Accountable & Responsive City Government) SARDA/Housing • Completed a request for proposal (RFP) for one affordable housing site. (Healthy & Livable City) Community Development Block Grant • Updated the CDBG internal process to better utilize technology and database tracking. (Accountable & Responsive City Government) Administration • Support the implementation of the Old Town Local Advisory Committee. (Economic Prosperity) Organizational Chart Expenditures by Category Personnel Performance Measures 196 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from Community Development include: Long Range Planning • Continue to make progress on the fourth phase of the General Plan Update. (Accountable & 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). (Economic Prosperity) Building & Safety • Maintain 75% of building permit transactions to be conducted online. (Economic Prosperity) Code Enforcement • Maintain an average Code Case open date rate of less than 60 days. (Accountable & Responsive City Government) SARDA/Housing • Solicit and award a request for proposal (RFP) for one affordable housing site. (Healthy & Livable City) Community Development Block Grant • Continue to maintain CDBG timeliness requirements for the disbursement of funds. (Accountable & Responsive City Government) Administration • Continue to support the implementation of the Old Town Local Advisory Committee. (Economic Prosperity) A (D Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 197 W Matt Peters Director of Community Development Long Range Planning Current Building and Safety Code Enforcement Planning/Permit Center General Plan Current Permit Inspection Nuisance Planning Center Services Abatement Zoning Ordinance ❑evelo ment Development Plan Plan Review Weed Abatement Review Processing Processing CEQA Public Management Permit Sign Abatement Information Issuance Public Information Abandoned Community CEQA Engagement Public Vehicle Abatement Management Information Energy Animal Control Conservation Programs SARDA]Housing Community Development Administration Block Grant ROPSJLRPMP Consolidated Plan Operating Budget Implementation Affordable CIP Budget Housing HUD Grant Compliance Administration and Compliance Procurement and Contract Real Estate Administration Acquisition and - Surecipient �ontract Disposition Administration Public Information Capital Projects Administration Personnel Cammunit y Grant Writing Administration Engagement C/ EXPENDITURES BY CATEGORY GENERAL FUND 001 PLANNING 161 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total Division Total BUILDING & SAFETY - CODE ENFORCEMENT SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total CAPITAL OUTLAY Total Division Total BUILDING & SAFETY 162 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total Division Total ANIMAL CONTROL 172 OPERATIONS & MAINTENANCE Total Division Total ANALYSIS/COMMENTS City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) 1,953,295 2,103,522 2,406,095 302,573 14.38% 265,370 775,829 804,409 28,580 3.68% 899,986 825,586 821,535 (4,051) -0.49% 3,118,651 3,704,936 4,032,039 327,102 8.83% 812,066 865,358 1,016,946 151,587 17.52% 184,734 321,434 276,360 (45,074) -14.02% 357,082 294,884 374,833 79,949 27.11% 11,840 10,319 0 (10,319) -100.0% 1,365,723 1,491,996 1,668,139 176,143 11.81% 2,383,591 2,681,063 2,674,029 (7,034) -0.26% 297,359 365,043 332,246 (32,797) -8.98% 671,575 609,846 650,755 40,909 6.71% 3,352,525 3,655,953 3,657,030 1,078 0.03% 444,156 441,582 777,820 336,238 76.14% 444,156 441,582 777,820 336,238 76.14% Planning: Planning expenditures are projected to increase by 8.83% due to reclassed positions, increased costs related to the Old Town Parking Sensors Project, and the calculated cost of living adjustments in accordance with the City's labor agreements. Code Enforcement: Code Enforcement division expenditures are projected to increase by 11.81% primarily due to Authorized staff added at Mid -Year, the calculated cost of living adjustments in accordance with the City's labor agreements, and higher Internal Service Fund Allocations as a result of higher insurance premiums and technology costs, offset by a reduction in consulting services to meet budget targets and no Capital Outlay requests for 2025-26. Building & Safety: Building & Safety division Operations & Maintenance expenditures decreased to meet budget targets, offset by higher Internal Service Fund Allocations. Animal Control: Animal Control expenditures increased by 76.14% as a result of negotiated contract costs. Annual Operating Budget 1 199 AFFORDABLE HOUSING FUND 165 rvurv-U[rAK I MUNI I AL 177 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total TRANSFERS Total Division Total COMMUNITY DEV BLOCK GRANT FUND 140 NON -DEPARTMENTAL 199 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) 365,308 213,449 248,132 34,683 16.25% 99,354 259,325 288,423 29,098 11.22% 68,102 50,054 54,273 4,219 8.43% 0 5,091,359 0 (5,091,359) -100.0% 532,763 5,614,187 590,828 (5,023,359) -89.48% SALARIES & BENEFITS Total 42,281 44,562 45,804 1,243 2.79% OPERATIONS & MAINTENANCE Total 183,182 189,756 246,140 56,385 29.71% TRANSFERS Total 2,377,403 11,843 325,000 313,157 2,644.24% Division Total 2,602,866 246,160 616,944 370,784 150.63% SARDA DEBT SERVICE FUND 380 NON -DEPARTMENTAL 199 OPERATIONS & MAINTENANCE Total TRANSFERS Total Division Total ANALYSIS/COMMENTS 4,437,557 5,910,644 7,090,641 1,179,997 19.96% 732,503 750,000 0 (750,000)-100.0% 5,170,059 6,660,644 7,090,641 429,997 6.46% Affordable Housing: Affordable Housing expenditures include a decrease of 89.48% due to the removal of the Transfers Out to support Capital Projects, offset by the calculated cost of living adjustments in accordance with the City's labor agreements, reclassed positions and an increase in anticipated consulting serviced. Community Development Block Grant: CDBG expenditures reflect an increase of 150.63% due to increased costs for outside services and fluctuations in the Transfers Out to support Capital Projects. SARDA: SARDA expenditures reflect an increase in the Operations & Maintenance due to the budget added to account for depreciation costs within the SARDA Fund, offset by the reduction in Transfer Out to support Capital Projects. LJ 200 1 Annual Operating Budget PERSONNEL ALLOCATIONS COMMUNITY DEVELOPMENT - PLANNING Asst. Director of Community Development Assistant Planner Associate Planner I Associate Planner 11 Community Development Technician I Deputy City Manager Director of Community Development Planning Manager Planning Technician Principal Management Analyst Principal Planner Senior Administrative Assistant Senior Community Development Technician Senior Management Analyst Senior Office Specialist Senior Planner Total COMMUNITY DEVELOPMENT - BUILDING & SAFETY Administrative Assistant Asst. Director of Community Development Building Inspector I Building Inspector II Building Official Code Enforcement Manager Code Enforcement Officer I Code Enforcement Officer II Community Development Technician I Community Development Technician II Deputy City Manager Director of Community Development Field Supervisor Code Enforcement Plan Checker Planning Technician Principal Management Analyst Senior Administrative Assistant Senior Building Inspector Senior Code Enforcement Officer Senior Community Development Technician Senior Management Analyst Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 0.50 0.65 0.65 - 2.00 1.00 1.00 - - 1.00 1.00 - 1.00 1.00 1.00 - 1.10 0.30 0.30 - 0.50 0.55 - (0.55) - - 0.65 0.65 1.00 1.00 1.00 - 1.10 2.00 1.00 (1.00) 0.30 0.35 0.55 0.20 - - 1.00 1.00 0.75 0.83 0.83 - 0.20 0.20 0.20 - 0.35 0.30 0.10 (0.20) 1.00 1.00 1.00 - 1.00 1.00 1.00 - 10.80 1 11.18 1 11.28 1 0.10 2.00 2.00 - (2.00) 0.25 0.25 0.25 - 1.00 1.00 1.00 - 3.00 2.00 2.00 - 1.00 1.00 1.00 - - - 1.00 1.00 2.00 1.00 1.00 - 1.00 2.00 2.00 - 0.90 2.70 2.70 - 1.00 - - - 0.25 0.25 - (0.25) - - 0.25 0.25 0.95 0.95 0.95 - 1.00 1.00 1.00 - 0.90 - - - 0.40 0.45 0.45 - 0.10 0.15 2.15 2.00 1.00 2.00 2.00 - 1.00 1.00 - (1.00) 1.80 1.80 1.80 - 0.90 0.90 0.90 - 20.45 20.45 20.45 - L_J Annual Operating Budget 1 201 CDBG Principal Management Analyst Total AFFORDABLE HOUSING Asst. Director of Community Development Deputy City Manager Director of Community Development Principal Management Analyst Principal Planner Senior Administrative Assistant Senior Management Analyst Total Grand Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 0.20 0.20 0.20 - 0.20 0.20 0.20 - 0.25 0.10 0.10 - 0.25 0.20 - (0.20) - - 0.10 0.10 0.10 - 0.80 0.80 0.15 0.02 0.02 - 0.75 0.80 - (0.80) 1.50 1.12 1.02 (0.101 *One Principal Planner position is unfunded for FY2025-26. LJ 32.95 1 32.95 1 32.95 1 (0.00) 202 1 Annual Operating Budget AIL City of Temecula Fiscal Year 2025-26 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. • 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 Water Quality Management Plan (WQMP) reviews, inspections and oversight for the development communityto ensure proper measures are considered duringthe development (planning/construction) process to meet NPDES regulations and requirements. Traffic Engineering • Maintain the Intelligent Transportation System (ITS) Network to provide for the efficient progression of traffic on the City's primary corridors. • 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 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. L 4611A n Organizational Chart Expenditures by Category Personnel Performance Measures 204 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Design, implement, and maintain fiber optic communications to traffic signals and facilities 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. • 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. �� of A n r. (D Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 205 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 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. Stormwater • 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 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. ACCOMPLISHMENTS Prior fiscal year accomplishments from Public Works include: Traffic Engineering • Installed fiber optic communication system along Pechanga Parkway. (Transportation Mobility & Connectivity) • Upgraded traffic signal controllers at various signalized intersections. (Transportation Mobility & Connectivity) Capital Improvement Program • Completed construction of the Pickleball Courts. (Healthy & Livable City) • Completed Citywide Pavement Rehabilitation Program — Butterfield Stage Road (Temecula Parkway to City limits), Pechanga Parkway (Temecula Parkway to Via Eduardo), and Rainbow Canyon Road (Pechanga Parkway to City limits). (Transportation Mobility & Connectivity) • Completed construction of 1-15 Congestion Relief. (Transportation Mobility & Connectivity) 4. n� it n� n Organizational Chart Expenditures by Category Personnel Performance Measures 206 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Completed construction of French Valley Parkway/Interstate 15 Improvements, Phase II. (Transportation Mobility & Connectivity) • Completed construction of Santa Gertrudis Creek Trail, Phase II, Margarita Under -Crossing. (Transportation Mobility & Connectivity) Street Maintenance • Continued to maintain various drainage channels, streets and road networks, and the City's right-of-way infrastructure. (Sustainable & Resilient City) Facility Maintenance • Pavement rehabilitation of Library parking lots. (Sustainable & Resilient City) • Installed security gate to Civic Center rear access drive. (Sustainable & Resilient City) Parks Maintenance • Completed renovation and replacement of playground equipment and safety surfacing at Ronald Reagan Sports Park. (Healthy & Livable City) • Pavement rehabilitation of public parking lots at various City parks. (Sustainable & Resilient City) GOALS AND OBJECTIVES Current fiscal year goals from Public Works include: Land Development • Develop a policy and procedures manual to outline common workflows for the Land Development Division. (Accountable & Responsive City Government) Traffic Engineering • Implement signal timing coordination on Pechanga Parkway. (Transportation Mobility & Connectivity) • Install fiber optic communication system along Ynez Road and implement signal timing coordination. (Transportation Mobility & Connectivity) • Replace all safety lighting at signalized intersections with LED lighting. (Safe & Prepared Community) Capital Improvement Program • Complete Citywide Pavement Rehabilitation Program — Rancho Way (Business Park Dr to Diaz Rd), Santiago Rd. (E of 1-15 bridge to Ynez Rd.), and Felix Valdez Ave. (Vincent Moraga Dr. to Sixth St.) in Fall 2025. (Transportation Mobility & Connectivity) ri Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 207 City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Complete construction of Ronald Reagan Sports Park Hockey Rink Renovation by January 2026. (Transportation Mobility & Connectivity) • Complete construction of Fire Station 84 renovation in Summer 2026. (Accountable & Responsive City Government) • Complete Ronald Reagan Sports Park Skate Park renovation in Spring 2026. (Transportation Mobility& Connectivity) • Complete construction of 1-15/SR-79 Enhanced Landscaping in Fall 2025. (Transportation Mobility & Connectivity) Street Maintenance • Continue to maintain and improve the City's roadway network. (Sustainable & Resilient City) • Provide effective graffiti abatement. (Sustainable & Resilient City) • Provide well -maintained right-of-way areas. (Sustainable & Resilient City) Facility Maintenance • Continue to retrofit various City facilities with LED lighting fixtures. (Sustainable & Resilient City) • Paint City facility exteriors (FOC, West Wing and TVE2). (Sustainable & Resilient City) • Fabricate and install trash enclosure covers for all City facilities. (Sustainable & Resilient City) • Upgrade appliances within the Community Recreation Center. (Sustainable & Resilient City) • Complete parking lot repairs at the Community Recreation Center. (Sustainable & Resilient City) Parks Maintenance • Replacement of playground equipment at Paseo Gallante Park. (Healthy & Livable City) • Convert and install LED lighting at Patricia H. Birdsall Sports Park for soccer fields one through four. (Sustainable & Resilient City) • Parking lot pavement rehabilitation at Patricia H. Birdsall Sports Park. (Sustainable & Resilient City) • Install sidewalk improvements at various City parks. (Sustainable & Resilient City) • Plant 300 trees throughout the City's right-of-way, parks, medians and facilities. (Healthy & Livable City) Stormwater • Develop a policy and procedures manual to outline common workflows for the Stormwater Division. (Accountable & Responsive City Government) i� n fI n�n Organizational Chart Expenditures by Category Personnel Performance Measures 208 1 Annual Operating Budget Ron Moreno Director of Public Works/City Engineer Engineering Land Traffic capital Projects Stormwater Development Engineering Administration Permits and Traffic/Safety Project Development, PIDES Compliance Development Commission Management and Inspection and Inspection Inspection Speed FEMA Project Surveys Permit and Floodplan Grant Compliance Compliance Administration Application Traffic Signal Maintenance Administration Bond and Timing Alterrative Administration Plans and Compliance and Map Specifications Management Recordation Traffic Analysis and j� Census Requests for BMP and IGP Development Proposals and Inspections Plans Check Public Service Public Bidding and Review Requests Conditions Assessment Public Informatlor PlanninAnalysis( Traffic impact and CFD Districts Commission Review Measure A Traffic and TUMF Control Plans Administration c Maintenance Street Facility Park and Landscape Maintenance Maintenance Maintenance Asphalt/ Building Park/Trail Concrete Maintenance Maintenance Maintenance and Rehab Median and Signing/ Old Town Slope Striping Facilities Maintenance Tr Trimming and Custodial Services Facility Landscape Weed Maintenance Abatement Public Drainage Service Plan Check Channels/ Requests Review Catch Basins Special Events and CIP Projects Public Service Requests and Emergency Graffiti Service Response Removal Special Events and Emergency Special Service Events and Response Emergency Service Response City of Temecula Fiscal Year 2025-26 l Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 LAND DEVELOPMENT 163 SALARIES & BENEFITS Total 1,569,654 1,851,179 1,670,742 (180,437) -9.75% OPERATIONS & MAINTENANCE Total 70,556 173,020 51,800 (121,220)-70.06% INTERNAL SERVICE FUND ALLOCATIONS Total 512,330 565,874 611,260 45,386 8.02% CAPITAL OUTLAY Total 10,102 0 0 0 0.0% Division Total 2,162,642 2,590,073 2,333,802 (256,271) -9.89% PUBLIC WORKS - NPDES COMPLIANCE SALARIES & BENEFITS Total 269,067 345,730 409,523 63,792 18.45% OPERATIONS & MAINTENANCE Total 795,290 751,326 964,050 212,724 28.31% Division Total 1,064,358 1,097,056 1,373,573 276,517 25.21% PUBLIC WORKS - OLD TOWN MAINTENANCF SALARIES & BENEFITS Total 130,540 162,394 146,833 (15,561) -9.58% OPERATIONS & MAINTENANCE Total 197,488 219,564 195,382 (24,182)-11.01% Division Total 328,028 381,958 342,214 (39,744)-10.41% PUBLIC WORKS - STREETS MAINTENANCE SALARIES & BENEFITS Total 1,752,880 1,916,200 1,916,627 426 0.02% OPERATIONS & MAINTENANCE Total 1,432,824 1,487,700 1,380,700 (107,000) -7.19% INTERNAL SERVICE FUND ALLOCATIONS Total 2,040,682 2,066,233 2,067,722 1,489 0.07% CAPITAL OUTLAY Total 14,282 0 0 0 0.0% Division Total 5,240,668 5,470,133 5,365,049 (105,085) -1.92% PUBLIC WORKS - TRAFFIC ENGINEERING SALARIES & BENEFITS Total 566,667 606,358 604,019 (2,339) -0.39% OPERATIONS & MAINTENANCE Total 74,936 204,807 161,780 (43,027)-21.01% Division Total 641,603 811,165 765,799 (45,366) -5.59% PUBLIC WORKS - TRAFFIC MAINTENANCE SALARIES & BENEFITS Total 432,159 443,825 396,255 (47,570)-10.72% OPERATIONS & MAINTENANCE Total 138,959 203,200 186,300 (16,900) -8.32% Division Total 571,118 647,025 582,555 (64,470) -9.96% CIP PUBLIC WORKS 165 SALARIES & BENEFITS Total 2,859,093 2,881,144 3,104,622 223,478 7.76% OPERATIONS & MAINTENANCE Total 30,030 65,700 47,500 (18,200) -27.7% INTERNAL SERVICE FUND ALLOCATIONS Total 562,290 553,456 616,213 62,757 11.34% CAPITAL OUTLAY Total 5,234 33,395 0 (33,395)-100.0% Division Total 3,456,647 3,533,695 3,768,335 234,640 6.64% �J 210 1 Annual Operating Budget GENERAL FUND 001 PARKS NuAiry i rrvHrvCE 167 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total CAPITAL OUTLAY Total Division Total DEVELOPMENT IMPACT FEES FUND 120 NON -DEPARTMENTAL 199 TRANSFERS Total Division Total MEASURE A FUND 170 NON -DEPARTMENTAL 199 OPERATIONS & MAINTENANCE Total TRANSFERS Total Division Total ANALYSIS/COMMENTS City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) 1,567,290 1,685,787 1,622,860 (62,927) -3.73% 3,799,382 4,140,300 4,162,554 22,254 0.54% 313,066 443,104 681,628 238,524 53.83% 84,439 96,451 0 (96,451) -100.0% 5,764,177 6,365,642 6,467,042 101,400 1.59% 495,860 14,280,576 4,226,610 (10,053,966) -70.4% 495,860 14,280,576 4,226,610 (10,053,966) -70.4% 2,885,916 1,783,743 3,155,000 1,371,257 76.88% 923,190 8,390,869 2,872,160 (5,518,709) -65.77% 3,809,106 10,174,612 6,027,160 (4,147,452) -40.76% Land Development: Land Development expenditures are decreasing by 9.89% due to reallocated staff, the transfer of an Authorized position to Finance, and a reduction in consulting services to meet budget targets. Public Works: Public Works division expenditures have no net impact compared to the prior year. Various reductions to Salaries & Benefits reflect underfilled and reallocated positions, while decreases in Operations & Maintenance were made to meet budget targets. CIP: CIP division expenditures are increasing by 6.64% due to higher Internal Service Fund Allocations as a result of higher insurance premiums and technology costs, reclassed positions, and the calculated cost of living adjustments in accordance with the City's labor agreements. These are offset by a reduction in consulting services and no Capital Outlay costs for 2025-26. Parks Maintenance: Parks Maintenance expenditures are projected to increase by 1.59% primarily due to higher Internal Service Fund Allocations as a result of higher insurance premiums and technology costs. 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. L_J Annual Operating Budget 1 211 PERSONNEL ALLOCATIONS 7i1�3�L����A7� _ ► � 7�1�1���I7►�i�i;�l Administrative Assistant Assistant Engineer II Asst. Director of Public Works Associate Civil Engineer Associate Engineer I Associate Engineer 11 Director of Public Works Engineering Tech I Management Analyst Management Assistant Principal Management Analyst Public Works Inspector II Senior Administrative Assistant Senior Management Analyst Senior Office Specialist Senior Public Works Inspector Total PUBLIC WORKS Administrative Assistant Asst. Director of Public Works Associate Civil Engineer Associate Engineer II Custodian II Director of Public Works Field Supervisor - Trades Landscape Inspector II Lead Maintenance Worker Lead Maintenance Worker -Electrician Lead Maintenance Worker-HVAC Maintenance Manager Maintenance Superintendent Maintenance Superintendent -Streets Maintenance Worker I Maintenance Worker II Management Analyst Management Assistant Office Specialist II Principal Civil Engineer Principal Management Analyst Program Manager City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 0.20 - - - 1.00 1.00 - (1.00) 0.25 1.00 - (1.00) - 1.00 1.00 - 1.00 - 1.00 1.00 1.00 1.00 2.00 1.00 0.15 0.15 0.15 - 1.00 1.00 1.00 - - 1.00 1.00 - 0.60 - - - 0.10 0.10 - (0.10) 0.90 0.90 0.90 - - 0.20 0.20 - 1.00 - - - - 1.00 0.60 (0.40) 0.75 0.75 0.75 - 7.95 1 9.10 1 8.60 1 (0.50) 0.20 - - - 0.30 - - - 1.00 1.00 1.00 - 1.00 - - - 0.10 0.20 0.20 - 0.40 0.40 0.40 - 0.15 0.15 - (0.15) 0.20 0.20 0.20 - 3.00 3.00 - (3.00) 0.10 0.10 0.10 - 0.05 0.05 0.05 - 0.85 0.85 0.85 - 0.05 0.10 0.10 - 1.00 1.00 1.00 - 4.00 7.00 7.00 - 2.00 - 3.00 3.00 - - 0.35 0.35 0.75 0.35 - (0.35) - - 1.00 1.00 - - 1.00 1.00 0.35 0.35 - (0.35) - 1.00 1.00 - 0 212 1 Annual Operating Budget Public Works Inspector II Senior Administrative Assistant Senior Civil Engineer Senior Landscape Inspector Senior Office Specialist Senior Public Works Inspector Senior Signal Technician Signal Technician I Total PUBLIC WORKS - CIP ADMINISTRATION Administrative Assistant Assistant Engineer I Assistant Engineer II Asst. Director of Public Works Associate Civil Engineer Associate Engineer I Associate Engineer II Director of Public Works Engineering Manager Engineering Technician II Principal Civil Engineer Principal Management Analyst Senior Administrative Assistant Senior Civil Engineer Senior Public Works Inspector Supervising Public Works Inspector Total PARKS MAINTENANCE City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 0.10 0.10 0.10 - - 0.20 0.20 - 1.00 1.00 - (1.00) 0.20 0.20 0.20 - 1.00 1.00 0.40 (0.60) 0.25 0.25 0.25 - 2.00 2.00 1.20 (0.80) - - 0.60 0.60 20.05 1 20.50 1 20.20 1 (0.30) 0.60 - - - - 1.00 - (1.00) 2.00 2.00 2.00 - 0.25 - 1.00 1.00 1.00 1.00 1.00 - - - 1.00 1.00 3.00 3.00 2.00 (1.00) 0.25 0.25 0.25 - 1.00 1.00 - (1.00) 1.00 - - - 1.00 1.00 2.00 1.00 0.45 0.45 - (0.45) - 0.60 0.60 - 1.00 1.00 1.00 - 2.00 2.00 2.00 - 1.00 1.00 1.00 - 14.55 1 14.30 13.85 1 (0.45) Asst. Director of Public Works 0.10 - - - Director of Public Works 0.10 0.10 0.10 - Landscape Inspector II 0.50 0.50 0.55 0.05 Lead Maintenance Worker 2.00 2.00 2.00 - Lead Maintenance Worker -Electrician 0.40 0.10 0.10 - Maintenance Superintendent 0.95 0.95 0.95 - Maintenance Worker 1 2.00 1.00 1.00 - Maintenance Worker 11 1.00 1.00 1.00 - Management Assistant 0.25 0.25 - (0.25) Management Analyst - - 0.25 0.25 Park Attendant 1 2.00 2.00 - (2.00) Annual Operating Budget 1 213 Park Attendant II Senior Landscape Inspector Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted Current Proposed Incr/(Decr) 2023-24 2024-25 2025-26 from Prior Yr 1.00 1.00 3.00 2.00 0.50 0.50 0.50 - 10.80 9.40 9.45 0.05 SERVICE LEVEL B Senior Signal Technician - - 0.80 0.80 Signal Technician 1 - - 0.40 0.40 - 1.20 1.20 Total - SERVICE LEVEL D Maintenance Manager 0.15 0.15 0.15 - Management Analyst - 0.20 0.20 Management Assistant 0.20 0.20 - (0.20) Principal Management Analyst 0.05 0.05 - (0.05) 0.40 0.35 (0.05) Total 0.40 Grand Toal 53.75 1 53.70 1 53.65 (0.05) *This decrease reflects a reallocation of 0.05 FTE to the Temecula Community Services District. JIM 214 1 Annual Operating Budget i -4 \N - / f , \ City of Temecula Fiscal Year 2025-26 Annual Operating Budget DEPARTMENT OVERVIEW MISSION The Temecula Sheriff's Office 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 117 sworn officers, 18 non -sworn officers Community Service Officers (CSOs), three Sheriff Service Officers (SSOs), 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 Administration • Manage personnel and operations at two Substation locations, City Hall, 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. • Provide a safety plan for all public events, as well as safety planning for City buildings. • Work collaboratively with the Code Enforcement and Fire Departments to address various crimes and municipal code violations. 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. �i (D Organizational Chart Expenditures by Category Personnel Performance Measures 216 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget Patrol Services • Utilize centralized, county -wide K9 Team 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 the Sheriff's Office include: Administration • Remodeled the Southwest Station to add an additional office meeting room and individual office spaces. (Accountable & Responsive City Government) • Replaced the Southwest Station's old carpet with solid surface laminate flooring. (Accountable & Responsive City Government) Investigations/Special Teams • The Robbery/Burglary Suppression Team (BRST) continued to focus solely on investigating robberies and burglaries (vehicle, residential and commercial) occurring in the City of Temecula. This included actively identifying robbery and burglary suspects, making arrests, and preparing cases for criminal filings. (Safe & Prepared Community) • The CORE Team continued to conduct proactive patrol and directed enforcement to address the quality -of -life issues in Temecula, including illegal vending, massage parlor compliance, and panhandling. (Safe & Prepared Community) • The CORE Team continued to establish working relationships with business owners in Temecula and address various crimes and municipal code violations while educating employees working at businesses on the laws. (Healthy & Livable City). • The CORE Team continued to work with the city Homeless Outreach Team to manage issues related to the homeless and/transient community. (Healthy & Livable City). • The Special Enforcement Team continued to conduct specialized enforcement related to gangs, narcotics, and crime trends. (Safe & Prepared Community) • The METRO Team continued to provide proactive patrols in the Old Town area and continued to work with Code Enforcement, Building & Safety, and the Fire Department to address business -related concerns and maintain a safe environment. (Safe & Prepared Community) Traffic Enforcement • Continued the open dialog with Traffic Engineering to improve traffic safety in the new fiscal year. (Transportation Mobility & Connectivity) Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 217 City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Continued to partner with non-profit agencies such as MADD, OTS, and DUITT to provide traffic safety presentations, DUI related enforcement and educational programs. (Safe & Prepared Community) • Continued to provide enforcement and education with the goal of reducing red light violators by 20%. (Transportation Mobility & Connectivity) • Continued high -visibility enforcement with the goal of reducing street racing and noise pollution. (Transportation Mobility & Connectivity) • Continued the partnership with TVUSD and School Resource Deputies to increase traffic safety in school zones. The Motorcycle Enforcement Team will remain visible at Temecula schools during drop-off and pick-up times. (Transportation Mobility & Connectivity) • Increased the number of high -visibility saturation patrols for FY2024-25. (Transportation Mobility & Connectivity) 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. (Safe & Prepared City) • Continued collaboration with CORE Team to effectively help homeless people within the City. Utilized all options and available resources as an alternative to incarceration. (Healthy & Livable City) • Promoted continued education and ensured deputies receive specialized training to properly investigate a wide variety of crimes. (Healthy & Livable City) s n't-�► s„ Organizational Chart Expenditures by Category Personnel Performance Measures 218 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from the Sheriff's Office include: Administration • Remain one of the safest cities in California and the nation. (Accountable & Responsive City Government) • Provide consistently professional services and information to customers and constituents. (Accountable & Responsive City Government) Investigations/Special Teams • The Robbery/Burglary Suppression Team (BRST) will focus solely on investigating robberies and burglaries (vehicle, residential and commercial) occurring in the City of Temecula. This includes actively identifying robbery and burglary suspects, making arrests, and preparing cases for criminal filings. (Safe & Prepared Community) • The CORE Team will conduct proactive patrol and directed enforcement to address the quality -of -life issues in Temecula, including illegal vending, massage parlor compliance, and panhandling. (Safe & Prepared Community) • The CORE Team will establish working relationships with business owners in Temecula and address various crimes and municipal code violations while educating employees working at businesses on the laws. (Healthy & Livable City). • The CORE Team will work with the city Homeless Outreach Team to manage issues related to the homeless and/transient community. (Healthy & Livable City). • The Special Enforcement Team will continue to conduct specialized enforcement related to gangs, narcotics, and crime trends. (Safe & Prepared Community) • The METRO Team will provide proactive patrols in the Old Town area and continue to work with Code Enforcement, Building & Safety, and the Fire Department to address business -related concerns and maintain a safe environment. (Safe & Prepared Community) Traffic Enforcement • Continue the open dialog with Traffic Engineering to improve traffic safety in the new fiscal year. (Transportation Mobility & Connectivity) • Continue to partner with non-profit agencies such as MADD, OTS, and DUITT to provide traffic safety presentations, DU -related enforcement and educational programs. (Safe & Prepared Community) • Continue to provide enforcement and education with the goal of reducing red light violators by 20%. (Transportation Mobility & Connectivity) • Continue high -visibility enforcement with the goal of reducing street racing and noise pollution. (Transportation Mobility & Connectivity) • Continue the partnership with TVUSD and School Resource Deputies to increase traffic safety in school zones. The Motorcycle Enforcement Team will remain visible at Temecula schools during drop-off and pick-up times. (Transportation Mobility & Connectivity) • Increase the number of high -visibility saturation patrols for FY2024-25. (Transportation Mobility & Connectivity) n Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 219 City of Temecula Fiscal Year 2025-26 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. (Safe & Prepared City) • Continue collaboration with CORE Team to effectively help homeless people within the City. Utilize all options and available resources as an alternative to incarceration. (Healthy & Livable City) • Promote continued education and ensure deputies receive specialized training to properly investigate a wide variety of crimes. (Healthy & Livable City) �I Organizational Chart Expenditures by Category n�E)n Personnel Performance Measures 220 1 Annual Operating Budget Mark Rigali Captain/Temecula Police Chief Police Administration' Investigations/ I Traffic Enforcement' Patrol Services Special Teams Administrative Detectives School Resources patrol Officers Support Officers Special Clerical Traffic Unit Patrol CSOs Enforcement Team Training Special Events CORE Team Logistics Volunteers METRO Team Mall/Old Town Substations Gang Task Force Sheriff Service Burglary/Robbery Officers Suppression Team c City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 SHERIFF'S OFFICE 170 SALARIES & BENEFITS Total 96,136 60,504 27,835 (32,669) -53.99% OPERATIONS & MAINTENANCE Total 40,162,109 42,961,577 47,573,631 4,612,054 10.74% INTERNAL SERVICE FUND ALLOCATIONS Total 412,473 608,372 680,936 72,564 11.93% CAPITAL OUTLAY Total 114,584 0 192,000 192,000 100.0% Division Total 40,785,303 43,630,453 48,474,402 4,843,949 11.1% ANALYSIS/COMMENTS Temecula Sheriff's Office: Expenditures are projected to increase by 11.1% to reflect the contractual obligations between the City and Riverside County, who provides law enforcement services to the City, and higher Internal Service Fund Allocations. Salaries and Benefits reflect a reduction due to the decrease in Part -Time Project positions from two to one, as these positions gradually shift over to the Sheriff's Support Officer positions to be provided by the County through the contract. Capital Outlay expenditures have increased due to unavailability of motorcycles in 2024-25; this budget has rolled forward to 2025-26. LJ 222 1 Annual Operating Budget PERSONNEL ALLOCATIONS SHERIFF'S OFFICE (Non -Contract Employees) Fiscal Services Manager Total SHERIFF'S OFFICE (Contract Employees) Chief of Police Lieutenant Sergeant Patrol Officers Gang Task Force Officer Mall Officers Traffic Accident Investigators Traffic Motorcycle Officers K9 Officers Special Enforcement Team Officers Problem Oriented Policing Team Officers Civic Center Deputy Pechanga Deputy School Resource Officers Youth Action Team (YAT) Officer Investigators Total Grand Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 0.15 - - - 0.15 - - - 1.00 1.00 1.00 5.00 5.00 5.00 15.00 15.00 15.00 40.70 40.70 40.70 1.00 1.00 1.00 4.00 4.00 4.00 5.00 5.00 5.00 12.00 12.00 12.00 1.00 1.00 1.00 - 1.00 1.00 1.00 - 5.00 5.00 5.00 - 1.00 1.00 1.00 - 7.00 7.00 7.00 - 116.70 116.70 116.70 - 116.85 L_J 116.70 116.70 Annual Operating Budget 1 223 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 224 1 Annual Operating Budget CITY OF TEMECULA a IN= DMIMARI M 1:10 11 Annual Operating Budget 1 225 City of Temecula Fiscal Year 2025-26 Annual Operating Budget MISSION The Temecula Fire Department maintains the highest levels of fire and rescue, Fire Marshal, Emergency Management 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 Emergency Operation, Emergency Management, 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 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. Emergency 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. • 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." • 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. • 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. • 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. n Organizational Chart Expenditures by Category Personnel Performance Measures 226 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget • 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. • Provide oversight and guidance to the Temecula Citizen Corps (TCC) and their 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. (Safe & Prepared Community) • Retained four -person staffing on all City engines and truck companies. (Safe & Prepared Community) • Continued CPR, First Aid, Stop the Bleed and Community Emergency Response Team (CERT) classes to the community in a safe environment. (Safe & Prepared Community) • Continued to train with the City's Emergency Operations manager and Center to be ready for an emergency incident within the City. (Safe & 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. (Safe & Prepared Community) Emergency Management • Increased the capability and capacity of the Temecula Citizen Corp (TCC) program to ensure the ability to rapidly respond to emergencies and incidents. Develop and maintain CERT Training program to further enhance the community's resilience through education. (Safe & Prepared Community) • Provided additional inclusive training opportunities to the City's population by providing Community Emergency Response Team (CERT) Training in Spanish. (Safe & Prepared Community) Fire Marshal • Restructured the current Fire fee schedule and created an annual inspection fee during the fee study process. (Safe & Prepared Community) • Continued inspections for all State Mandated regulated facilities governed by the State Fire Marshal on an annual basis for fire and life safety. (Safe & Prepared Community) • Continued working with the community to educate them on Fire, Life and Safety. (Safe & Prepared Community) it n� Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 227 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from Fire include: Emergency Operations • Maintain five-minute response times to all calls for service. (Safe & Prepared Community) • Retain four -person staffing on all City engines and truck companies. (Safe & Prepared Community) • Continue CPR, First Aid, Stop the Bleed and Community Emergency Response Team (CERT) classes to the community in a safe environment. (Safe & Prepared Community) • Continue to train with the City's Emergency Operations manager and Center to be ready for an emergency incident within the City. (Safe & 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. (Safe & Prepared Community) Emergency Management • Begin the development of the City's first City -Wide Mass Evacuation Plan to ensure the principles, structures, roles, and responsibilities are in place for a coordinated evacuation. The plan will incorporate and comply with principles and requirements found in Federal and State laws, regulations, and guidelines. (Safe & Prepared Community) • Develop complete mitigation projects as approved within the Local Hazard Mitigation Plan (LHMP) to reduce or lessen the impact of identified hazards within the community and their impacts on residents and their livelihoods. (Safe & Prepared Community) • Continue to increase the capability and capacity of the Temecula Citizen Corps (TCC) program to ensure the ability to rapidly deploy and respond to emergencies and incidents. Develop and maintain Community Bases CERT Training program to further enhance the community's resilience through education and preparedness. (Safe & Prepared Community) • Continue to provide additional inclusive training opportunities to the City's population by providing CERT Training and LISTOS training in Spanish. (Safe & Prepared Community) • Begin the development of the Emergency Operation Center's (EOC) cost recovery standards, resource ordering and tracking process for the EOC Logistics Section, enabling the proper documentation standards established by CalOES and FEMA are met. This will ensure that the City is able recover all potential reimbursement costs, post -incident. (Safe & Prepared Community) Fire Marshal • Continue inspections for all State Mandated regulated facilities governed by the State Fire Marshal on an annual basis for fire and life safety. (Safe & Prepared Community) • Continue working with the community to educate them on Fire, Life and Safety. (Safe & Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 228 1 Annual Operating Budget '1- M. b John Crater Division Chief/Temecula Fire Chief Emergency I I Emergency Operations Fire Marshal Management Fire Information Program Suppression M and Education M Management Emergency Medical Planning and Training and Services 0 Engineering Exercises Community All Risk Enforcement Engagement Responses and Outreach Non -Response Annual Communications Activities Program Temecula Inspection Emergency Citizen Corps Services Operations Center Permit - Issuance Planning C/ City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total CAPITAL OUTLAY Total Division Total FIRE - FIRE -PARAMEDICS OPERATIONS & MAINTENANCE Total Division Total FIRE - FIRE PREVENTION SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total CAPITAL OUTLAY Total Division Total EMERGENCY MANAGEMENT 115 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total INTERNAL SERVICE FUND ALLOCATIONS Total CAPITAL OUTLAY Total Division Total ANALYSIS/COMMENTS 148,037 178,847 183,598 4,751 2.66% 8,144,288 8,042,479 10,450,376 2,407,897 29.94% 544,784 513,129 350,847 (162,282) -31.63% 46,966 0 0 0 0.0% 8,884,075 8,734,455 10,984,821 2,250,365 25.76% 62,005 98,400 81,900 (16,500) -16.77% 62,005 98,400 81,900 (16,500) -16.77% 449,195 562,487 631,398 68,911 12.25% 1,251,666 1,407,983 1,758,868 350,885 24.92% 209,276 210,235 466,026 255,791 121.67% 0 70,000 0 (70,000) -100.0% 1,910,137 2,250,705 2,856,292 605,587 26.91% 167,300 186,806 209,207 22,400 11.99% 98,307 254,749 253,317 (1,432) -0.56% 223,347 279,043 319,028 39,985 14.33% 29,021 5,000 5,000 0 0.0% 517,975 725,598 786,552 60,953 8.4% Fire: Fire department expenditures are projected to increase by 25.62% due to contractual rates provided by the County, who contracts with the City to provide Fire Prevention and Suppression services, calculated cost of living adjustments for non -contracted staff, and higher Internal Service Fund Allocations. Emergency Management: Emergency Management reflects an increase of 8.4% due to a reclassed position, the calculated cost of living adjustments, and higher Internal Service Fund Allocations. �J 230 1 Annual Operating Budget PERSONNEL ALLOCATIONS FIRE (Non -Contract Employees) Community Development Technician I -Fire Community Development Technician II -Fire Fire Inspector I Fire Inspector 11 Management Analyst Office Specialist I Senior Community Development Technician Total FIRE (Contract Emolovees Battalion Chief Fire Captain Fire Captain Medic Fire Chief Fire Engineer Fire Engineer Medic Fire Fighter II Fire Fighter II Medic Fire Safety Supervisor Fire Safety Specialist Fire Systems Inspector Total EMERGENCY MANAGEMENT Emergency Manager Senior Management Analyst Total Grand Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr - 1.00 1.00 - 1.00 1.00 1.00 - 1.00 - - - - 1.00 1.00 - 1.00 1.00 1.00 - - - 1.00 1.00 1.00 - - - 4.00 1 4.00 1 5.00 1 1.00 1.00 1.00 1.00 - 15.00 18.00 17.00 (1.00) 1.00 1.00 1.00 - 1.00 1.00 1.00 - 11.00 11.00 11.00 - 6.00 6.00 6.00 - 16.00 16.00 22.00 6.00 15.00 18.00 12.00 (6.00) 1.00 1.00 1.00 - 2.00 2.00 2.00 - 3.00 3.00 5.00 2.00 72.00 78.00 79.00 1.00 - 1.00 - 1.00 1.00 - 1.00 (1.00) 1.00 1.00 1.00 - 77.00 82.00 84.00 2.00 *This increase reflects the addition of 1.00 non -contracted Office Specialist 1 for FY25-26 and 2.00 contracted Fire Systems Inspectors that were added during the FY24-25 Mid -Year Budget update, offset by 1.00 reduction of a contracted Fire Captain. Riverside County provides cost sharing for staffing at Fire Station No. 95, whereby the County pays for 4 positions in 2023-24 and 5 positions in 2024-25 and 2025-26. L_J Annual Operating Budget 1 231 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 232 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget DEPARTMENT OVERVIEW MISSION Non -Departmental is a cost center for general administrative expenditures such as the Retiree Medical Contribution, CaIPERS Replacement Benefit and Property Tax Administrative Fees. It also reflects Operating Transfers Out to the Capital Improvement Program and other City funds. 234 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) GENERAL FUND 001 NON -DEPARTMENTAL 199 SALARIES & BENEFITS Total 0 (2,710,437) (3,477,724) (767,287) 28.31% OPERATIONS & MAINTENANCE Total 4,394,881 1,072,100 674,400 (397,700) -37.1% TRANSFERS Total 17,831,046 11,008,195 8,767,833 (2,240,362) -20.35% Division Total 22,225,927 9,369,858 5,964,509 (3,405,349) -36.34% ANALYSIS/COMMENTS Non -Departmental: Non -Departmental expenditures are projected to decrease due to the large one-time transfers in 2024-25 to increase the Insurance and Workers' Compensation Fund reserves, and a decreased Transfer Out to the Capital Improvement Program for the Comprehensive General Plan Update project. 2023-24 expenditures include the continuation of the City's Debt/Liability Paydown Strategy, with the Transfer of $3,254,000 to pay off the Other Post -Employment Benefits (OPEB) unfunded liability, an additional contribution of $14,538,003 towards the City's unfunded Pension liability, and another $2 million contribution to the City's Pension Trust. Also reflected in the Salaries and Benefits category is the anticipated CalPERS employer contribution savings resulting from the previous $21.8 million payment towards the unfunded Pension liability. As of May 2025 Funding Sources Payoff Schedule Annual Updated Pension Available OPEB Pension Civic Center MRC Budgetary Change Year# Fiscal Year Trust Fund Balance Liability Liability Loan Loan Savings From Original 1 2022-23 5,000,000 19,913,606 7,250,000 12,624,607 5,038,999 (1,620,001) (364,988) 2 2023-24 7,000,000 10,792,003 3,254,000 14,538,003 (3,253,835) 1,893,000 3 2024-25 5,000,000 2,913,492 7,913,492 (5,522,203) (321,458) 4 2025-26 2, 000, 000 6,267,833 8,267,833 (5,598,373) 1,448,821 5 2026-27 8,455,217 8,455,217 (5,680,108) 6,277,059 6 2027-28 9,019,970 9,019,970 (5,763,328) (1,184, 698) 7 ---8-----2029-30 2028-29 ------------------------------------- 6, 304, 545 6, 304, 545 ------(5,938,215) (5, 851, 032) --(1,125, 490) 9 2030-31 (5,566,423) 10 2031-32 (4,356,798) 19,000,000 63,666,666 3,254,000 61,749,060 12,624,607 5,038,999 (49,150,315) 6,622,246 Change from Origin al 2,000,000 1,885,165 (2,107,000) 9,095,257 Total Interest Savings n/a 30,763,360 L_J (327,393) (38,618) 8,999,878 2,187,894 1,036,267 Annual Operating Budget 1 235 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 236 1 Annual Operating Budget !� ' �r � F . ��. �r• �3 .tiwr i+ lM^.. �ry�� dry _ ��� �+ �� 1 Mc` City of Temecula Fiscal Year 2025-26 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, and Rod Run. • Provide free family activities including monthly Art Walk events and seasonal Summer Concert series. • Provide co-sponsorship of funds or in -kind services to special events. Arts and Culture • Enrich, educate, and entertain our community by providing cultural experiences through the fine and performing a rts. • 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. i Organizational Chart Expenditures by Category Personnel Performance Measures 238 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget • 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 • Build and expand partnerships that improve the overall quality and coordination of services and programs. • Coordinate Homeless Outreach, prevention, and mitigation efforts with staff, community partners, businesses, and public safety. • Develop opportunities that support youth, young adults, persons with disabilities, senior citizens, and at -risk populations. • Engage youth in student -based advisory boards which promote community and civic involvement. • Offer nutritional, health, and wellness education, and social programs for seniors. • Provide learning experiences, leadership development, and career and educational pathways for youth, young adults, older adults, and veterans through inclusive workforce opportunities. • Provide training among City staff and local key constituencies that serve persons with disabilities. • 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. • Provide library services including collections that include books, periodicals, DVDs, CDs and resource databases geared for adults, teens, and children; provide resources 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 • Developed a Water Safety Program within the next year for children in grades K-3rd. This is very important as the Centers for Disease Control and Prevention lists drowning as the leading cause of death of children in children ages 1-4, and the second leading cause of death for children ages 5-14. This will be a five-year goal, where programming will be added each year thereafter for additional age groups and for parents. (Safe & Prepared Community) • Updated, refreshed and monitored TCSD's division webpages to ensure each page provides our community with the most up-to-date information. (Accountable & Responsive City Government) • Enhanced and expanded Teen Zone offerings by creating a weekly home school day and providing local excursions to increase teen participation. (Equity) r1 � 0 A , Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 239 City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Launched new Summer Day Camp (Camp Soar) at the Margarita Recreation Center to serve the unmet need at the CRC. (Healthy & Livable City) Recreation • Planned, programmed, and operated a year-round aquatics program with a variety of classes and activities for a range of ages and abilities, including children, adults, seniors, and special needs populations at the MRC pool. (Healthy & Livable City) • Continued to establish programming for leagues, rentals, and tournaments at Ronald Reagan Sports Park's newly renovated hockey rink. (Healthy & Livable City) • Established programming for public use of the new pickleball complex at Ronal Reagan Sports Park. (Healthy & Livable City) • Designed a new route for the annual Color Run, due to various renovations taking place at Ronald Reagan Sports Park and the Community Recreation Center. (Healthy & Livable City) • Launched new Summer and Spring active outdoor activities for seniors through the Shuffleboard Program. (Healthy & Livable City) Citywide Events • Provided safe and family -friendly community events for all residents and visitors. (Healthy & Livable City) • Worked closely with the Riverside Sheriff's Office on Community Special Events to ensure the safety of all staff, spectators, and participants. (Safe & Prepared Community) Arts and Culture • Promoted arts education and creativity through performance and visual arts. (Healthy & Livable City) • Developed strategic partnerships to increase area awareness about the Community Theater and its productions. (Healthy & Livable City) Human Services • Expanded Jr STEM Camp to two sessions in the summer to give more opportunities for innovation and creativity to the youth in the City. (Equity) • Developed programs to provide more in-depth information and valuable experiences, such as CPR certifications and facility tours to the youth throughout workforce programs. (Equity) • Participated in the 2025 Point -In -Time Count and show a reduction on the City's incidence of homelessness by continuing to provide outreach and connect individuals to appropriate resources for stabilization. (Healthy & Livable City) • Conducted a City -focused homeless census to gather data that will help connect individuals experiencing homelessness in the City with shelters and align local resources to reduce the City's incidence of homelessness. (Healthy & Livable City) • Expanded the Summer Food Service Program (SFSP) to serve meals at the Margarita Recreation Center five days a week and continued to maintain SFSP service at Rotary Park. (Equity) ` UL Organizational Chart Expenditures by Category Personnel Performance Measures 240 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget • Expanded Human Services and Inclusion programs at the Magarita Recreation Center and promoted diversity of programs that meet the unique needs of the area's demographic. (Equity) • Collaborated with public and private agencies to create opportunities for young adults with disabilities who are transitioning into the workforce. (Equity) • Collaborated with the Department of Emergency Management to address the need to reach underserved populations during a disaster or other emergency preparedness situations. (Safe & Prepared Community) Administration • Continued to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the department. (Accountable & Responsive City Government) • Continued to implement recommendations from the Community Services Master Plan. (Healthy & Livable City) • Continued to partner with Public Works to complete replacements of identified park playgrounds. (Sustainable & Resilient City) • Worked with Community Services managers to accurately project budget needs and minimize variances. (Accountable & Responsive City Government) • Promoted Little Sprouts Seed Library. In cooperation with Vlada's Seeds of Life and sponsored by the Friends of the Temecula Libraries, this provides free, organic seeds to encourage families to grow a home garden and to educate children about nutrition and sustainable gardening. (Healthy & Livable City) • Began a new summer program, Lunch at the Library, pop-up at MRC. Library staff will present story times with related activities for youth from low-income families and free books and meals during summer when children are not receiving free lunches at school. (Equity) • Promoted Teen Teaching Tech program in partnership with the Heart of Temecula Leo Club. This is a cross generational program where teens provide adults/seniors with one-on-one tutoring for electronic devices and provide community service hours towards graduation requirements. (Equity) • Continued partnership with Riverside County Law Library to provide Temecula Law Resource Center, which offers free legal assistance and legal resources in the library, as well as free programs on topics like estate planning, landlord/tenant relations, and more. (Equity) • Collaborated with TVUSD to reopen the Technology and Homework Center. The Homework Center, when properly staffed by TVUSD personnel, provides 22 computers and peer tutors who offer free tutoring and homework assistance to K-12 students, five days a week. Peer tutors then earn volunteer service hours towards graduation requirements. (Healthy & Livable City) ,. amp �i Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 241 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from Temecula Community Services District include: Community Services • Enhance customer service experience and increase revenue by auditing existing rental facilities and procedures, and by working with the media team to promote City facilities. (Healthy & Livable City) • Finalize and release the new TCSD Marketing & Media guide, which is designed to be used in all marketing material produced by each division. This will help create consistency across all divisions and safeguard our brand's reputation. (Healthy & Livable City) • Increase community classes and programs at the Temecula Community Center to maintain the number of classes offered to Temecula residents. (Healthy & Livable City) • Update the remaining TCSD division webpages to ensure each division's page provides our community with the most current and up-to-date information. (Accountable & Responsive City Government) Recreation • Continue to provide a fun and safe environment, featuring a wide variety of recreational activities during Summer Day Camp. (Healthy & Livable City) • Continue to establish programming for leagues, rentals, and tournaments at Ronald Reagan Sports Park's soon -to - be renovated hockey rink. (Healthy & Livable City) • Create new programs and opportunities within the Teen Zone to increase memberships. (Healthy & Livable City) • Create a Water Safety Program with different segments geared toward all ages and abilities. Once developed, aquatics staff will take this program to local schools, HOAs and other community groups requesting water safety training. This will promote water safety and the importance of supervision around water activities and swim lessons to reduce the risk of drowning. (Safe & Prepared Community) • Establish programming for public use of the new pickleball complex at Ronald Reagan Sports Park. (Healthy& Livable City) • Plan, program, and operate two year-round and one seasonal aquatic center with a variety of classes and activities for a range of ages, and abilities including children, adults, seniors, and special needs populations at the MRC, CRC, and CHS aquatic centers. (Healthy & Livable City) Citywide Events • Provide safe and family -friendly community events for all residents and visitors. (Healthy & Livable City) • Work closely with the Riverside Sheriff's Office, Cal Fire, and Emergency Management on community Special Events to ensure the safety of all staff, spectators, and participants. (Safe & Prepared Community) �� 0,- '' A 19 Organizational Chart Expenditures by Category Personnel Performance Measures 242 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget Arts and Culture • Continue to work with the local art community to expand opportunities for public art. (Healthy & Livable City) • Create strategic partnerships to increase area awareness about the Community Theater and its productions. (Healthy & Livable City) • Educate the community by providing experiences and events in historical preservation, appreciation, celebration, and cultural learning through monthly Culture Day celebrations, guest lectures, gallery talks, Temecula History Day, and Out of The Archives presentations. (Healthy & Livable City) • Partner with local schools to offer educational experiences to youth through field trip tours and history project contests. (Healthy & Livable City) • Promote Arts Education and creativity through performance and visual arts by partnering with local schools. (Healthy & Livable City) Human Services • Conduct a City -focused homeless census to gather data that will help connect individuals experiencing homelessness in the City of Temecula to shelter and align local resources to reduce the City's incidence of homelessness. (Healthy & Livable City) • Develop programs to provide more valuable experiences, such as CPR certifications, Food Handlers Certificate, and facility tours to youth through workforce programs. (Healthy & Livable City) • Participate in the 2026 Point -In -Time Count and show a reduction on the City's incidence of homelessness by continuing to provide outreach and connect individuals to appropriate resources for stabilization. (Healthy & Livable City) • Continue Human Services and Inclusion programs at the Margarita Recreation Center and promote diversity of programs that meet the needs of the community. (Equity) • Continue to offer the Margarita Recreation Center's After School Program based on the needs of the community and to include after school snack, homework/tutoring, literacy, enrichment, and recreation. (Equity) • Provide comprehensive service support to seniors and active adults at the Mary Phillips Senior Center by way of seamless transportation service, meals and nutrition, health and wellness, recreation, and socialization. (Healthy & Livable City) • Meet the service demands of the Summer Food Service Program at the Mike Naggar Community Park. (Equity) • Ensure a seamless operations of the summer day camp program at the Margarita Recreation Center — Camp SOAR. (Equity) • Collaborate with public and private agencies to leverage funds and resources that support youth, at -risk families, and individuals with disabilities. (Sustainable & Resilient City) • Develop community service opportunities that support the community (Veterans Appreciation Breakfast and Young Men's Career Conference). (Equity) Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 243 City of Temecula Fiscal Year 2025-26 Annual Operating Budget Administration • Continue to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the Department. (Accountable & Responsive City Government) • Continue to implement recommendations from the Community Services Master Plan. (Healthy & Livable City) • Continue to partner with Public Works to complete replacements of identified park playgrounds. (Sustainable & Resilient City) • Work with Community Services Managers to accurately project budget needs and minimize variances. (Accountable & Responsive City Government) • Provide library services including collections of books, periodicals, DVDs, CDs and resource databases geared for adults, teens, and children; provide resources via a partnership between the Temecula Valley Unified School District, and Law Library Services via a partnership with the Riverside County Law Library. (Equity) • Provide Little Sprouts Seed Library. In cooperation with Vlada's Seeds of Life and sponsored by Friends of the Temecula Libraries, this provides free seeds to encourage families to grow a home garden and to educate children about nutrition and sustainable gardening. (Healthy & Livable City) • Continue to offer Lunch at the Library pop-up at MRC. Library staff will present story times with related activities for youth from low-income families, providing free books to build home libraries and meals during summer when children are not receiving free lunches at school. (Equity) • Promote Teens Teaching Tech program in partnership with the Heart of Temecula Leo Club. This is a cross generational program where teens provide adults/seniors with one-on-one tutoring for electronic devices and provide community service hours towards graduation requirements. (Equity) • Continue partnership with Riverside County Law Library to provide Temecula Law Resource Center, which offers free legal assistance and legal resources in the library, as well as free programs on topics like estate planning, landlord/tenant relations and more. (Equity) • Collaborate with TVUSD to host the Technology Homework Center. In addition to providing computers, Wi-Fi, and study space, the Homework Center, staffed by TVUSD personnel, offers free peer tutoring and homework assistance to K-12 students, five days a week. Peer tutors then earn volunteer service hours towards graduation requirements. (Healthy & Livable City) • Serve on the Audiovisual Automation RFP panel and coordinate with City IT and Emergency Manager to equip library to serve as secondary EOC for the City. (Safe & Prepared Community) • Provide new outreach with an Inclusive Social Hour for adults with special needs to provide socialization and community. (Equity) • Collaborate with the Native Plant Network to maintain the newly planted Butterfly Garden and to seek funding for signage and additional native plants. Educate families about monarch migration and pollinator gardens by hosting a family event. (Healthy & Livable City) • Continue providing educational programs in coordination with the City's Emergency Manager on Wildfire Preparedness and Earthquake Preparedness, and other safety topics for adults. (Safe & Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 244 1 Annual Operating Budget rot I Erica Russo Director of Community Services Community Recreation Special Events Arts & Culture Services Services Sports Signature Events � Community Theater EFacility Rentals Aquatics Community Events History Museum Media) Com unit Recreation Pro rammin g g Cultural Arts Events Sister Cities Relationsy MEMEMMEM Parks and fields Public Art Human Services = Administration Seniors and Park and Facility Active Adults Development Inclusion Services � Strate is and Master Manning Homeless � Outreach Library Services College and City & Regional Career Initiatives Preparation Support Veterans Outreach MEMEMMEN Budgget Administration Volunteer Coordination 14 City of Temecula rll�r Fiscal Year 2025-26 l Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) TEMECULA COMMUNITY SERVICES DISTRICT FUND 190 CITYWIDE OPERATIONS SALARIES & BENEFITS Total 9,886,945 11,770,915 12,397,747 626,833 5.33% OPERATIONS & MAINTENANCE Total 3,802,279 4,670,880 4,094,798 (576,082)-12.33% INTERNAL SERVICE FUND ALLOCATIONS Total 2,694,441 2,724,332 2,810,839 86,507 3.18% CAPITAL OUTLAY Total 37,765 0 0 0 0.0% TRANSFERS Total 37,706 0 0 0 0.0% Division Total 16,459,136 19,166,127 19,303,384 137,258 0.72% CITYWIDE OPERATIONS - MAINTENANCE SALARIES & BENEFITS Total 707,385 809,578 971,314 161,736 19.98% OPERATIONS & MAINTENANCE Total 1,068,363 1,141,010 1,036,889 (104,121) -9.13% Division Total 1,775,749 1,950,588 2,008,203 57,615 2.95% TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 191 OPERATIONS 180 OPERATIONS & MAINTENANCE Total 0 0 20,000 20,000 100.0% Division Total 0 0 20,000 20,000 100.0% TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 192 OPERATIONS 180 SALARIES & BENEFITS Total 0 0 206,647 206,647 100.0% OPERATIONS & MAINTENANCE Total 341,632 484,000 483,688 (312) -0.06% INTERNAL SERVICE FUND ALLOCATIONS Total 0 0 36,603 36,603 100.0% TRANSFERS Total 200,000 200,000 0 (200,000)-100.0% Division Total 541,632 684,000 726,938 42,938 6.28% SERVICE LEVEL"C"ZONES (FUND 501-529) OPERATIONS 180 OPERATIONS & MAINTENANCE Total 1,436,817 1,594,084 1,668,781 74,697 4.69% TRANSFERS Total 411,891 39,809 0 (39,809)-100.0% Division Total 1,848,709 1,633,893 1,668,781 34,888 2.14% �J 246 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 194 OPERATIONS 180 SALARIES & BENEFITS Total 80,543 79,522 74,789 (4,733) -5.95% OPERATIONS & MAINTENANCE Total 10,374,268 10,667,430 10,911,662 244,232 2.29% Division Total 10,454,811 10,746,952 10,986,451 239,499 2.23% OPERATIONS - DEPARTnaFnIT OF CONSERVATION GRAD' OPERATIONS & MAINTENANCE Total 0 4,148 0 (4,148)-100.0% CAPITAL OUTLAY Total 0 23,405 31,516 8,111 34.65% Division Total 0 27,553 31,516 3,963 14.38% OPERATIONS - SB 1383 CAL RECYCLE GRANT OPERATIONS & MAINTENANCE Total 33,140 327,098 250,789 (76,309)-23.33% Division Total 33,140 327,098 250,789 (76,309)-23.33% TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 196 OPERATIONS 180 SALARIES & BENEFITS Total 12,750 14,601 14,976 375 2.57% OPERATIONS & MAINTENANCE Total 255,195 305,400 303,100 (2,300) -0.75% Division Total 267,945 320,001 318,076 (1,925) -0.6% TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 195 OPERATIONS 180 OPERATIONS & MAINTENANCE Total 107 5,425 10,434 5,009 92.33% Division Total 107 5,425 10,434 5,009 92.33% TEMECULA LIBRARY FUND 197 OPERATIONS 180 OPERATIONS & MAINTENANCE Total 214,692 240,949 230,715 (10,234) -4.25% INTERNAL SERVICE FUND ALLOCATIONS Total 388,609 446,566 534,044 87,478 19.59% Division Total 603,301 687,515 764,759 77,244 11.24% OPERATIONS - MAINTENANCE SALARIES & BENEFITS Total 226,676 264,954 345,661 80,707 30.46% OPERATIONS & MAINTENANCE Total 314,170 340,959 335,108 (5,851) -1.72% CAPITAL OUTLAY Total 0 41,150 0 (41,150)-100.0% Division Total 540,846 647,063 680,769 33,706 5.21% n L�J Annual Operating Budget 1 247 City of Temecula Fiscal Year 2025-26 Annual Operating Budget ANALYSIS/COMMENTS Citywide Operations: TCSD Operational expenditures reflect an increase of 0.92% due to the calculated cost of living adjustment per the City's labor agreements and full year's salaries for Custodial positions added at Mid -Year, offset by various reductions in Operations & Maintenance line items to meet budget targets. Service Level B: Service Level B Expenditures reflect an increase of 9.2% due to the addition of one Signal Technician I, offset by the removal of the Transfer Out of $200,000, as the desired Fund Balance has been met. Service Level C: Service Level C expenditures reflect an increase of 2.14% due to reassessment of parcels within the City limits. Service Level D: Service Level D expenditures reflect an increase of 1.51% due to increasing waste hauling rates resulting from the contractually obligated consumer price index adjustments to keep pace with inflation, offset by reductions in Operations and Maintenance to meet budget targets. Service Level L: Service Level L expenditures reflect a decrease of 0.6 due to a prior year requisition and budget rolled forward into FY24-25. Service Level R: Service Level R expenditures reflect a 92.33% increase due to a FY24-25 budget reduction where Emergency Street Maintenance budget was not needed. Library: Library expenditures reflect an increase of 8.31% primarily due to a full year's cost of 7 custodial positions added during the FY24-25 Mid -Year Budget update and higher Internal Service Fund Allocations due to increased insurance premiums and technology costs, offset by no Capital Outlay budget for FY25-26. l�J 248 1 Annual Operating Budget PERSONNEL ALLOCATIONS PARKS AND RECREATION Aquatics Coordinator Aquatics Supervisor I Aquatics Supervisor II Assistant Director of Community Services Community Services Assistant Community Services Coordinator I Community Services Coordinator II Community Services Manager Community Services Specialist 1/11 Community Services Superintendent Community Services Supervisor I Community Services Supervisor 11 Community Services Supervisor 1/11 Custodian 11 Director of Community Services Field Supervisor -Code Enforcement Field Supervisor -Trades Landscape Inspector II Lead Maintenance Worker -Electrician Lead Maintenance Worker -Facilities Lead Maintenance Worker-HVAC Maintenance Superintendent Maintenance Worker I - Facilities Maintenance Worker II - Facilities Management Assistant Multimedia Coordinator Office Specialist II Principal Management Analyst Senior Landscape Inspector Theater Technical Coordinator I Theater Technical Coordinator 11 Theater Technical Specialist 11 Total SERVICE LEVEL L Maintenance Superintendent Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 1.00 - - - 1.00 - - - 2.00 - - - - 1.00 1.00 - 1.00 - - - 2.00 2.00 3.00 1.00 4.00 3.00 3.00 - 9.00 9.00 8.00 (1.00) - 1.00 1.00 - 2.00 1.00 1.00 - 4.00 5.00 7.00 2.00 3.00 6.00 6.00 - - 1.00 - (1.00) 1.20 1.10 1.10 - 1.00 1.00 1.00 - 0.05 0.05 0.05 - 0.50 0.50 0.10 (0.40) 0.20 0.20 0.20 - 0.10 0.40 0.40 - 0.10 0.10 - (0.10) 0.50 0.50 0.50 - 0.35 0.30 0.30 - 1.00 0.45 0.45 - 1.50 1.50 1.95 0.45 1.00 1.00 1.00 - 2.00 2.00 2.00 - 1.00 1.00 - (1.00) 1.00 1.00 1.00 - 0.20 0.20 0.20 - 1.00 1.00 1.00 - 1.00 - - - - 1.00 1.00 - 42.70 1 42.30 1 42.25 1 (0.05) 0.05 1 0.05 1 0.05 1- 0.05 1 0.05 1 0.05 1 - L_J Annual Operating Budget 1 249 LIBRARY Custodian II Field Supervisor -Trades Landscape Inspector II Lead Maintenance Worker -Electrician Lead Maintenance Worker-HVAC Maintenance Superintendent Maintenance Worker I - Facilities Maintenance Worker II - Facilities Senior Landscape Inspector Total Grand Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted Current Proposed Incr/(Decr) 2023-24 2024-25 2025-26 from Prior Yr 0.30 0.30 0.30 - 0.10 0.10 0.10 - 0.10 0.10 0.05 (0.05) 0.15 0.15 0.10 (0.05) 0.15 0.15 0.10 (0.05) 0.10 0.10 0.10 - - 0.25 0.25 - 0.35 0.35 0.60 0.25 0.10 0.10 0.10 - 1.35 1 1.60 1 1.70 1 0.10 44.10 43.95 44.00 0.05 *This increase reflects a reallocation of 0.05 FTE from the Public Works Department. L_J 250 1 Annual Operating Budget S; I I ' 1 r: y -• City of Temecula Fiscal Year 2025-26 Annual Operating Budget Insurance EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) INSURANCE FUND 300 NON -DEPARTMENTAL 199 SALARIES & BENEFITS Total 221,774 207,956 273,054 65,097 31.3% OPERATIONS & MAINTENANCE Total 3,605,342 3,282,213 3,527,263 245,050 7.47% Division Total 3.827.116 3.490.169 3.800,317 310.148 8.89% 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 8.89% due to higher insurance premiums and legal services, the reallocation of Authorized personnel, and the calculated cost of living adjustment in accordance with the City's labor agreements. PERSONNEL ALLOCATION INSURANCE Director of HR/Risk Management Management Assistant (Confidential) Senior Management Analyst Total Adopted Current Proposed Incr/(Decr) 2023-24 2024-25 2025-26 from Prior Yr 0.25 0.25 0.25 - 0.30 0.10 0.45 0.35 0.40 0.45 0.45 1 - 0.95 1 0.80 1 1.15 0.35 *This increase reflects a reallocation of 0.35 FTE from the Human Resources Department. 252 1 Annual Operating Budget Workers' Compensation EXPENDITURES BY CATEGORY WORKERS' COMPENSATION FUND 305 NON -DEPARTMENTAL 199 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total Division Total ANALYSIS/COMMENTS Workers' Compensation City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2024-25 2025-26 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) 221,773 193,674 273,564 79,890 41.25% 289,371 370,756 383,605 12,849 3.47% 511,143 564,429 657,169 92,739 16.43% 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 16.43% due to higher insurance premiums, the reallocation of Authorized personnel, and the calculated cost of living adjustment in accordance with the City's labor agreements. PERSONNEL ALLOCATION WORKERS' COMPENSATION Director of HR/Risk Management Management Assistant (Confidential) Senior Management Analyst Total Adopted Current Proposed Incr/(Decr) 2023-24 2024-25 2025-26 from Prior Yr 0.25 0.25 0.25 - 0.30 - 0.45 0.45 0.40 1 0.45 1 0.45 1 - 0.95 1 0.70 1 1.15 1 0.45 *This increase reflects a reallocation of 0.45 FTE from the Human Resources Department. Annual Operating Budget 1 253 City of Temecula Fiscal Year 2025-26 Annual Operating Budget Vehicles and Equipment EXPENDITURES BY CATEGORY 2024-25 2025-26 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) VEHICLES AND EQUIPMENT FUND 310 NON -DEPARTMENTAL 199 OPERATIONS & MAINTENANCE Total 429,526 0 429,527 429,527 100.0% CAPITAL OUTLAY Total 1,408 279,050 370,000 90,950 32.59% Division Total 430,934 279,050 799,527 520,477 186.52% ANALYSIS/COMMENTS Vehicles and Equipment: Vehicles and Equipment expenditures include the replacement of several vehicles and heavy equipment, all of which have reached the end of their useful lives. A list of the replacement items can be found in the list of Consolidated Capital Outlay, located in Appendix B. 254 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 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. Z 46wt n� I n Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 255 City of Temecula Fiscal Year 2025-26 Annual Operating Budget ACCOMPLISHMENTS Prior fiscal year accomplishments from Information Technology include: Information Technology and Support Services • Ensured City residents had access to secure, reliable, state-of-the-art technology at the Ronald H. Roberts Temecula Public Library through the replacement of audiovisual equipment in the conference center. (Accountable & Responsive City Government) • Delivered enhanced reliability of City systems through the lifecycle replacement of the Security System Storage Area Network. (Safe & Prepared Community) • Ensured staff efficiency with improvements to the stability, security, and speed of remote access through software and hardware improvements to the City's virtual infrastructure. (Accountable & Responsive City Government) • Offered improved resilience of City's operations through the planning and implementation of disaster recovery and business continuity. (Accountable & Responsive City Government) • Enabled maximum staff productivity and security by ensuring that applications are kept current, and that infrastructure is patched appropriately. (Accountable & Responsive City Government) Support Services • Offered increased reliability and improved staff efficiency through the lifecycle replacement of the paper folder/inserter. (Accountable & Responsive City Government) • Coordinated print services for all public and staff copy machines throughout the Civic Center and all off -site facilities. (Accountable & Responsive City Government) • Provided mail room, copy -center, and related services (large format printing, laminating, folding/inserting, binding, etc.) for all City departments and off -site facilities. (Accountable & Responsive City Government) n Organizational Chart Expenditures by Category Personnel Performance Measures 256 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GOALS AND OBJECTIVES Current fiscal year goals from Information Technology include: Information Technology and Support Services • Offer improved efficiency for staff, residents, and vendors, through the implementation and use of software designed to manage contracts and allow for digital signatures. (Accountable & Responsive City Government) • Enrich and enhance the experience enjoyed by residents and visitors to the Ronald Reagan Sports Park through the lifecycle replacement of the amphitheater audio system. (Accountable & Responsive City Government) • Improve the resilience and reliability of the City network through the testing of disaster recovery and other City security systems. (Accountable & Responsive City Government) • Expand service offerings including Wi-Fi, audiovisual equipment, and security systems, to the residents of Temecula at the renovated Harveston Park Community Center. (Accountable & Responsive City Government) • Deliver efficient and effective communication with the residents through production and sharing of videos of public meetings, special events, and announcements. (Accountable & Responsive City Government) Support Services • Offer increased reliability and improved staff efficiency through the life cycle replacement of City copiers. (Accountable & Responsive City Government) • Coordinate managed print services for all public and staff copy machines throughout the Civic Center and all off -site facilities. (Accountable & 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. (Accountable & Responsive City Government) W AN L n� II n Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget I 257 It Michael Heslin Director of Information Technology and Support Services Enterprise Geographic Support Media Services Application Information Services Tech Support Infrastructure Services (EAS) Systems (GIS) Website & Social Workflow Analysis & Copy Center Help Desk Network Networking Development Mapping Administration Television Station Database GIS Application Mailroom Computer System Management Administration Development Services Support Administration Media Services Application Training & Copier & Printer Inventory Telecom Support Support Support Management Management Audio Visual Report Data Collection Civic Center Reception Public Safety Security Production Development & Maintenance Services Support Systems Graphic Design End User Database Print Services Library Technology Security Training Administration Support Cameras Aerial Video & Mobile Device Web & Spatial Shipping & Asset Life Cycle Cybersecurity Photography Management Data Services Receiving Management c City of Temecula Fiscal Year 2025-26 l Annual Operating Budget EXPENDITURES BY CATEGORY 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) INFORMATION TECHNOLOGY FUND 320 NON -DEPARTMENTAL 199 SALARIES & BENEFITS Total 2,238,957 2,427,290 2,563,239 135,949 5.6% OPERATIONS & MAINTENANCE Total 3,014,148 3,378,722 3,695,750 317,028 9.38% INTERNAL SERVICE FUND ALLOCATIONS Total 2,660 2,660 0 (2,660)-100.0% CAPITAL OUTLAY Total (475,258) 0 0 0 0.0% TRANSFERS Total 0 1,748,615 0 (1,748,615)-100.0% Division Total 4,780,507 7,557,288 6,258,989 (1,298,299)-17.18% GIS-GEOGRAPHIC INFORMATION TECHNOLOGY 610 SALARIES & BENEFITS Total 421,587 455,350 473,880 18,530 4.07% OPERATIONS & MAINTENANCE Total 92,963 106,375 108,875 2,500 2.35% Division Total 514,549 561,725 582,755 21,030 3.74% LIBRARY -INFORMATION TECHNOLOGY 620 SALARIES & BENEFITS Total 221,750 243,822 275,837 32,016 13.13% OPERATIONS & MAINTENANCE Total 77,479 110,700 110,200 (500) -0.45% Division Total 299,229 354,522 386,037 31,516 8.89% TECHNOLOGY REPLACEMENT FUND 325 NON -DEPARTMENTAL 199 OPERATIONS & MAINTENANCE Total 151,157 0 151,158 151,158 100.0% CAPITAL OUTLAY Total 0 496,071 365,000 (131,071)-26.42% TRANSFERS Total 62,028 701,506 0 (701,506)-100.0% Division Total 213,186 1,197,577 516,158 (681,419) -56.9% SUPPORT SERVICES FUND 330 NON -DEPARTMENTAL 199 SALARIES & BENEFITS Total 248,422 273,894 253,827 (20,067) -7.33% OPERATIONS & MAINTENANCE Total 107,387 134,000 134,000 0 0.0% Division Total 355,810 407,894 387,827 (20,067) -4.92% SUPPORT SERVICES REPLACEMENT FUND 335 NON -DEPARTMENTAL 199 OPERATIONS & MAINTENANCE Total 42,394 0 42,200 42,200 100.0% CAPITAL OUTLAY Total 0 13,600 30,000 16,400 120.59% Division Total 42,394 13,600 72,200 58,600 430.88% PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 125 NON -DEPARTMENTAL 199 CAPITAL OUTLAY Total 37,686 175,000 25,000 (150,000)-85.71% Division Total 37,686 175,000 25,000 (150,000)-85.71% L_J Annual Operating Budget 1 259 City of Temecula Fiscal Year 2025-26 Annual Operating Budget ANALYSIS/COMMENTS Information Technology: Information Technology expenses reflect a decrease of 17.18% primarily due to the one-time transfer of accumulated Fund Balance in FY24-25. Expenditures reflect the cost of living adjustment per the City's labor agreements, higher costs of software maintenance and added budget for depreciation costs. Technology Replacement: Technology Replacement Capital Outlay expenditures total $365,000 to replace network switches ($75,000), the City's phone system ($75,000), audio equipment at the Community Recreation Center amphitheater ($90,000) and to fund the annual computer lifecycle replacement program ($125,000). Operations & Maintenance expenditures reflect budget added to FY25-26 for depreciation costs. Support Services: Support Services expenses reflect a decrease of $4.92% due to the reallocation of staff from this department to Information Technology. Support Services Replacement: Support Services Replacement expenses total $30,000 to replace City copiers approaching the end of their useful life ($30,000). Public Education & Government: PEG expenses total $25,000 for the replacement of audiovisual production equipment ($25,000). L_J 260 1 Annual Operating Budget PERSONNEL ALLOCATIONS INFORMATION TECHNOLOGY Assistant Director of IT/SS Director of Information Technology Information Technology Manager Information Technology Specialist I Information Technology Specialist II Information Technology Supervisor Information Technology Technician 1/II Management Analyst Senior Administrative Assistant Senior Information Technology Specialist Support Services Supervisor Total SUPPORT SERVICES Information Technology Technician 1/II Office Specialist - AM Office Specialist - PM Support Services Supervisor Total Grand Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 2.00 1.00 1.00 1.00 - (1.00) 5.00 5.00 5.00 - 1.00 0.50 1.00 0.50 1.00 1.00 1.00 - 1.00 1.00 1.00 - 2.00 2.00 2.00 - 0.10 0.10 0.10 - 15.10 1 14.60 1 15.10 1 0.50 - 0.50 - (0.50) 0.60 0.60 0.60 - 0.60 0.60 0.60 - 0.90 0.90 0.90 - 2.10 1 2.60 1 2.10 1 (0.50) 17.20 17.20 1 17.20 - Annual Operating Budget 1 261 Facilities EXPENDITURES BY CATEGORY FACILITIES FUND 340 NON -DEPARTMENTAL 199 SALARIES & BENEFITS Total OPERATIONS & MAINTENANCE Total TRANSFERS Total Division Total FACILITY REPLACEMENT FUND 350 NON-DEPARTMENTAi OPERATIONS & MAINTENANCE Total CAPITAL OUTLAY Total TRANSFERS Total Division Total ANALYSIS/COMMENTS City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2024-25 2025-26 % 2023-24 Current Proposed Increase/ Increase/ Actuals Budget Budget (Decrease) (Decrease) 551,526 620,666 691,687 71,022 11.44% 1,117,389 1,087,752 954,260 (133,492) -12.27% 0 606,326 0 (606,326) -100.0% 1,668,915 2,314,743 1,645,947 (668,796) -28.89% 87,338 0 87,338 87,338 100.0% 3,074 82,276 0 (82,276) -100.0% 604,731 2,722,395 1,000,000 (1,722,395) -63.27% 695,143 2,804,671 1,087,338 (1,717,333) -61.23% Facilities: Facilities departmental expenditures are projected to net decrease by 46.6% over the prior year due to custodial contract savings and reductions to meet budget targets. The added budget for depreciation in Fund 350 is offset by the year -over -year reduction in Capital Outlay purchases. Fund 340 transfers for FY24-25 reflect a one-time transfer of accumulated Fund Balance to the Facility Replacement Fund. Fund 350 transfers reflect the transfer of funding to the Capital Improvement Program Fund for the City Facilities Rehabilitation project. LJ 262 1 Annual Operating Budget PERSONNEL ALLOCATIONS FACILITIES Asst. Director of Public Works Custodian II Director of Public Works Field Supervisor -Trades Lead Maintenance Worker -Electrician Lead Maintenance Worker -Facilities Lead Maintenance Worker-HVAC Maintenance Superintendent Maintenance Worker I - Facilities Maintenance Worker 11 - Facilities Management Analyst Management Assistant Principal Management Analyst Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget Adopted 2023-24 Current 2024-25 Proposed 2025-26 Incr/(Decr) from Prior Yr 0.10 - - - 0.40 0.40 0.40 - 0.10 0.10 0.10 - 0.25 0.25 0.80 0.55 0.30 0.30 0.30 - 0.80 0.80 - (0.80) 0.35 0.35 0.35 - 0.50 0.50 0.50 - - 0.30 0.30 - 0.15 0.15 0.45 0.30 - - 0.20 0.20 0.20 0.20 - (0.20) 0.05 0.05 - (0.05) 3.20 1 3.40 1 3.40 1- �c Annual Operating Budget 1 263 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 264 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 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 2026-30 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 seven Core Values upon which to focus time and resources (as identified in the QLMP). These areas include: 1. Safe & Prepared City 2. Transportation Mobility & Connectivity 3. Healthy & Livable City 4. Economic Prosperity �M 5. Sustainable & Resilient City, 6. Accountable & Responsive City Government +q'T£g e� 7. Equity 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, Traffic Safety Commission, and the Parks and Recreation Commission. Annual Operating Budget 1 265 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL IMPROVEMENT PROGRAM SUMMARY 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 of Circulation, Infrastructure, Parks and Recreation, Housing, and Community Facilities Districts (CFD) Funded Projects have been assigned in accordance with the priority guidelines as follows: 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. 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. 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. FUTURE YEARS The project will be an improvement to the community but does not necessarily need to be PROJECTS: completed within a five-year capital improvement program time frame. FISCAL YEARS 2026-30 CAPITAL IMPROVEMENT PROGRAM SUMMARY The CIP includes a total of $894,070,582 in identified capital projects, with a total of $624,379,144 in project funding, representing 70% of all Project Costs. There is $269,691,438 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 be secured before the project construction can commence. Capital projects are categorized into five Project Types, as noted in the table below. Project Type Number of Projects Total Project Cost Circulation 24 632,429,570 Housing 4 20F4010,000 1 nfrastru ctu re 49 117,740,242 Parks/ Re c 18 59,908,080 M-Funded 2 63,5910,689 894,070,582 266 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL IMPROVEMENT PROGRAM SUMMARY 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 Fiscal Years 2026-30 CIP program reflects 61% from outside funding sources, with the remaining 39% provided by various City funds, including Measure S, Measure A, Development Impact Fee Funds, General Fund, Capital Financing, and several other sources. Capital Proiect Funding Sources TUNIF, 54,1b1,598, 9% State/Local Grants, City Funds , 244,469,320, 74,448,743, 1396 / Successor Agency, .; 750,000,0% . Reimbursements, 40,952,252, 6% Federal Grants, 96,030,114. IS% Development Cammunity 1 mpact Fees, Fac i 1ty Districts, 53,591,56119% 54,975,557. 9% Only one new project has been added to the CIP, the Local Roadway Safety Plan Update ($155,000) which is designed to bring the Plan in line with federal safety requirements. As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. The amounts identified in the table below are incorporated into the Proposed Operating Budget and the Five -Year Financial Projections. Summary of Operating & Maintenance Impacts Maintenance and Operations of PW17-01/711 - CITY SECU R ITY CAMERA SYSTEM Security Camera System 300,000 300,000 300,000 300,000 300,000 FN19-01/724 - CITYWIDE FINANCIAL SYSTEM UPGRADE Annual Software Maintenance 96,000 96,000 96,000 86,000 86,000 PW17-18/688 - CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT Electricity Savings R695,286) (709,475) R723,665) (739,138) (752,901) PW21-09/683 - ELECTRIC VEHICLES CHARGING STATION Electric Charging Vehicles Fees (3,100) (3,100) (3,100) (3,100) (3,100) PW17-19/690 - 1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING Required by Caltrans 50,905 62,045 63,289 65,198 57,144 PW17-21/692- MARGARITA RECREATION CENTER Staffing for MRC 14 positions) Project Staffing for MRC R45 positions- 13.07 FTEs) Additional Utility Costs Janitorial/Security 526,609 548,551 570,493 591,&00 614,370 705,946 735,361 764,775 7135,366 825,979 71,371 72,828 74,285 77,034 75,999 1213,251 131,888 134,526 139,504 144,973 1,433,177 1,488,628 1,544,079 1,603,504 1,655,220 IT20-01/790 - OLD TOWN SECURITY CAMERA & SOUND Maintenance fee for Old Tovan SYSTEM Sound System 75,000 75,000 75,000 75,000 75,000 PWPE07-03/PW23-18- LONG CANYON CREEK PARK RESTROOMS Janitorial Services 29,866 30,475 31,rim 31,706 32,340 PWPE-07/155 - PARK RESTROOMS RENOVATIONS, EXPANSION AND ADA IMPROVEMENTS Janitorial Services 27,591 28,154 28,717 29,292 29,979 PWPE07-02- VAIL RANCH PARK RESTROOMS Janitorial Services 29,866 39,475 31,685 31,706 32,340 Annual Operating Budget 1 267 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 1-1111 :Z�L�►� 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.0 §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. 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). 268 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget DESCRIPTION OF REVENUE SOURCES 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, sheriff, 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). 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. Annual Operating Budget 1 269 DESCRIPTION OF REVENUE SOURCES Senate Bill 821 City of Temecula Fiscal Year 2025-26 Annual Operating Budget B 821, the Bicycle and Pedestrian Facilities Program, is provided through the Transportation Development Act (TDA), funded through a % 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. 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. 270 1 Annual Operating Budget Funding Source City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS REVENUE SUMMARY 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Actuals Amended Budget Projected Projected Projected Projected Cost City Funds Affordable Housing 9,617,578 Assembly Bill 2766 440,483 Capital Financing 6,405,000 Community Reinvestment Program 78,652 Contribution of Land Facilities Replacement Fund 2,350,965 Gas Tax 1,200,000 General Fund 19,624,796 Measure A 26,048,478 Measure S 44,806,310 RMRA - Road Repair & Accountability Act 10,430,387 Service Level C - Zone 28 460,191 Street Maintenance Fund 3,600,000 TEAM - Temecula Energy Efficiency Asset Fund 248,077 Technology Replacement Fund 62,028 Uptown Temecula New Streets In Lieu Fee City Funds Total 125,372,946 Community Facility District Funds CFD 01-02 (Harveston) 1,005,840 CFD 03-01 (Crowne Hill) 502,211 CFD 03-02 (Roripaugh Ranch) 38,413,523 CFD 16-01 (Roripaugh Ranch -Phase II) Community Facility Districts Total 39,921,574 Development Impact Fee Funds DIF-Corporate Facilities 1,550,738 DIF-Fire Protection Facilities 102,210 5,091,359 14,708,937 589,075 50,000 160,000 175,000 185,000 185,000 1,784,558 6,405,000 6,346,348 6,425,000 561,000 1,300,000 1,861,000 2,722,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 10,073,360 1,200,000 1,485,352 500,000 21,610,148 8,390,869 2,872,160 1,312,000 1,889,160 1,492,000 1,492,000 43,496,667 34,282,099 8,809,109 1,686,535 2,508,710 438,660 2,048,710 94,580,133 6,098,426 2,827,154 2,883,697 2,941,371 3,000,198 3,115,180 31,296,413 39,809 500,000 2,937,307 1,927,477 8,464,784 550,852 798,929 701,506 763,534 500,857 500,857 70,297,253 17,985,900 8,342,232 8,514,241 6,115,858 7,840,890 244,469,320 1,005,840 502,211 8,331,133 46,744,656 6,722,850 6,722,850 15,053,983 54,975,557 440,000 667,131 2,657,869 473,374 575,584 Annual Operating Budget 1 271 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS REVENUE SUMMARY 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Funding Source Actuals Amended Budget Proiected Proiected Proiected Proiecte4 DIF-Library Facilities DIF-Open Space & Trails 431,310 DIF-Park & Rec Improvements 3,563,016 DIF-Police Facilities 1,232,369 DIF-Quimby 4,181,189 DIF-Street Improvements 11,537,814 DIF-Traffic Signals 1,922,882 Development Impact Fees Total 24,521,528 Federal Grants BTA - Bicycle Transportation Account CDBG - Community Development Block Grant 2,957,688 CPFCDS- Community Project Funding/Congressionally Directed Spending HBP-Highway Bridge Program 530,421 HSIP-Highway Safety Improvement Program 394,215 INFRA - Infrastructure for Rebuilding America Grant 24,512,035 SAFETEA-LU - Safe, Accountable, Flexible, Efficient Transportation 1,439,839 STP (RCTC) - Surface Transportation Program 12,279,728 Federal Grants Total 42,113,926 Reimbursements/Other County AD 159 Developer Contribution 1,932,514 Reimbursement-Pechanga IGA 7,550,000 Reimbursements 9,280,859 Reimbursements/Other 1,190,582 Reimbursements/Other Total 19,953,955 940,000 1,562,908 2,208,256 414,624 21000,000 25,744 649,000 2,587,965 1,516,240 500,000 1,000,000 5,184,866 1,628,615 5,738,847 857,463 375,000 14,280,576 4,226,610 7,262,847 3,000,000 300,000 300,000 11,843 325,000 325,000 325,000 325,000 325,000 2,000,000 3,924,579 18,472,874 95,295 25,487,965 1,602,360 696,272 31,818,314 325,000 20,797,874 325,000 325,000 325,000 4,008,270 11,978,159 4,011,868 1,000,000 19,998,297 1,000,000 Total Project Cost 940,000 1,994,218 8,185, 896 1,907,113 9,785,394 24, 090,142 3,455,345 53,591,561 4,594,531 2,000,000 22,927,874 489,510 50,000,000 3,042,199 12,976,000 96,030,114 4,008,270 14,910,673 7,550,000 13,292,727 1,190, 582 40,952,252 272 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS REVENUE SUMMARY 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source Actuals Amended Budget Proiected Proiected Proiected Proiected Cost Successor Agency RPTTF-Redevelopment Property Tax Trust Fund Successor Agency Total State/Local Grants Beyond Grant Grants HSIP- Highway Safety Improvement Program MSRC-Mobile Source Air Review Committee Grant Senate Bill 1 - Active Transportation Program Senate Bill 621 Senate Bill 821 SHOPP - State Highway Operation & Protection Program STIP-Surface Transportation Improvement Program State/Local Grants Total Transportation Uniform Mitigation Fund (TUMF) TUMF TUMF (CETAP/RCTC) TUMF (RCTC) TUMF (WRCOG) Transportation Uniform Mitigation Fund (TUMF) Total 19,857 776,598 111,574 14,446, 520 750,000 750,000 4,133,528 3,383,790 29,426 1,502,000 160,000 362,600 1,250,000 21,406,924 31,193,076 38,011,473 40,764,420 1,438,000 5,825,056 7,468,562 23,935,200 38,666,818 3,873,891 11,620,889 15,494,780 120,000 552,850 672,850 750,000 750,000 19,857 5,030,126 3,936,640 141,000 1,502,000 14,606,520 362,600 1,250,000 52,600,000 79,448,743 1,438,000 9,698,947 7,468,562 35,556,089 Annual Operating Budget 1 273 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CIP MAJOR REVENUE SOURCES Capital Project Funding Sources TU MF , 54,161,598, 9% City Funds, State/Local Grants , 244,469,320, 79,448,743, 13% 39% Successor Agency, 750,000 , 0% Reimbursements, 40,952,252, 6% Federal Grants , 96,030,114, 15% Development Community Impact Fees, Facility Districts, 53,591,561 , 9% 54,975,557, 9% PROJECTED REVENUES: $6241379J44 274 1 Annual Operating Budget CAPITAL PROJECT EXPENDITURE SUMMARY Circulation Projects Butterfield Stage Road Storm Drain Improvements Cherry Street Extension & Murrieta Creek Crossing 618,831 De Portola Road/Jedediah Smith Road Roundabout 43,385 Diaz Road Expansion 1,502,020 Flashing Beacons & Speed Advisory Signs 296,730 French Valley Parkway/1-15 Improvements - Phase II 90,764,367 French Valley Parkway/1-15 Improvements - Phase III 3,332,565 1-15 / French Valley Parkway Improvements -Phase IV 1-15 Congestion Relief 4,233,372 I-15/State Route 79 South Ultimate Interchange 49,339,292 Medians & Parkways - Citywide 666,838 Motor Car Parkway Improvements Murrieta Creek Bridge At Overland 1,750,732 North General Kearny Street Improvements 4,785 Overland Drive Extension Commerce Center 7,982,529 Overland Drive Widening 554,817 Pavement Rehabilitation Program - Citywide 47,016,695 Rainbow Canyon Road Pavement Rehabilitation 324,515 Rancho California Road Median Improvements 48,839 Traffic Signal - Equipment Enhancement Program - Citywide 1,474,948 Traffic Signal - Installation - Citywide 1,914,517 Traffic Signal - System Upgrade 722,227 Ynez Road Improvements - Phase 1 344,850 Ynez Road Improvements - Phase 11 347,255 Circulation Total 213,284,110 Housing Proiects Habitat for Humanity Old Town Units Las Haciendas Affordable Housing Project 7,947,784 Uptown Temecula Affordable Housing Site Vine Creek Affordable Housing Project Housing Total 7,947,784 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 11,861,900 77,641 2,159,615 2,266,000 11,934,493 2,000,000 1,614,478 42,553 47,986,979 1,000,000 7,224,229 200,000 200,000 3,200,000 350,000 54,750,000 181,400,000 5,025,337 1,752,605 750,000 5,982,188 24,211,721 372,552 335,368 1,438,203 4,864,784 7,667,932 5,051,154 4,195,697 4,342,371 4,492,198 4,492,200 2,575,485 909,161 4,500,000 1,271,841 260,000 260,000 260,000 260,000 693,166 375,000 300,000 64,673 3,651,322 522,615 113,777,242 14,164,553 31,242,418 7,802,371 9,902,198 242,256,678 1,261,000 2,182, 216 1,000,000 6,710,000 11,153,216 1,300,000 1,300,000 11,861,900 696,472 4,469,000 17,050,991 339,284 139,751,346 69,256,794 181,400,000 9,258,710 51,091,897 666,838 750,000 31,944,641 377,337 8,317,897 6,857,804 77,258,247 2,900,000 5,458,000 3,786,788 3,282,683 786,900 4,518,787 347,255 632,429,570 1,261,000 10,130,000 2,300,000 6,710,000 20,401,000 Annual Operating Budget 1 275 CAPITAL PROJECT EXPENDITURE SUMMARY Infrastructure Protects American With Disabilities Act (ADA) Transition Plan Implementation 790,616 679,225 403,660 Auto Mall Wayfinding Signs 200,000 535,218 Bike Lane and Trail Program - Citywide 416,079 140,668 50,000 Bike Lane and Trail Program - Great Oak Trail Lighting 460,191 392,617 Bike Lane and Trail Program - RRSP Trails 96,776 905,851 Bike Lane And Trail Program - Temecula Creek South Side Trail 545,433 248,287 Bike Lane Upgrades - Citywide 50 274,450 Bridge Maintenance 85,418 402,742 488,160 City Facilities Rehabilitation 4,071,271 1,952,395 1,000,000 City Facility Security 95,720 154,280 25,000 City Security Camera System 3,686,969 804,815 Citywide Drainage Master Plan 561,349 247,203 43,000 Citywide Financial System Upgrade 675,213 701,505 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 7,970,759 Community Recreation Center (CRC) Renovations 5,378,487 831,387 Community Wildfire Protection Plan 216,004 161,996 Comprehensive General Plan Update 609,958 2,440,042 500,000 Electric Vehicles Charging Station 301,940 190,790 Fiber Optic Communications Systems - Citywide 120,150 87,850 Fire Station 73 Gym/Garage 563,014 252,366 4,350,300 Fire Station 84 Training Room Renovation 414,846 2,310,228 804,376 1-15/State Route 79 South Interchange Enhanced Landscaping 641,342 2,988,953 Interstate 15 Corridor Branding and Visioning Improvements 200,000 Library Alternate Emergency Operations Center Enhancements 700,000 Library Technology Enhancements 240,000 Local Roadway Safety Plan Update 155,000 Margarita Recreation Center 12,159,288 442,219 Mary Phillips Senior Center Enhancement And Renovation 2,218,995 25,694 Medians & Traffic Calming Improvements- Citywide 107,798 869,103 Murrieta Creek Improvements 708,517 2,114,084 15,000 Nicolas Road Multi -Use Trail Extension 1,500,000 Old Town Parking Structure 255,542 1,149,458 Old Town Security Camera & Sound System 1,118,986 141,014 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 403,660 403,660 403,660 403,660 3,488,141 735,218 160,000 1,319,558 185,000 185,000 2,456,305 852,808 1,002,627 8,593,350 9,387,069 274,500 488,160 1,464,480 1,000,000 1,000,000 1,000,000 1,000,000 11, 023, 666 275,000 4,491,785 851,552 1,376,718 7,970,759 6,209,874 378,000 3,550,000 492,729 208,000 5,165,680 3,529,450 3,630,295 200,000 200,000 200,000 800,000 700,000 240,000 155,000 12,601,508 2,244,689 976,900 2,837,601 1,500,000 1,405,000 1,260,000 276 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECT EXPENDITURE SUMMARY Old Town Temecula Parklets Program 68,866 381,135 450,000 Pavement Management Program Update 120,859 254,141 214,980 589,980 Pedestrian Ramp Upgrades - Citywide 50 274,950 275,000 Santa Gertrudis Creek Phase II - Margarita Under -Crossing 991,826 4,608,297 5,600,123 Sidewalks - Citywide 1,169,799 322,777 1,492,575 Sidewalks - Old Town Improvements 1,901,633 (73,049) 1,828,585 Sidewalks - Pauba Road 66,604 890,520 100,000 1,057,124 Sixth Street Improvements 118,844 973,481 1,092,326 South Side Senior Center 100,000 100,000 Storm Drain Pipe Lining 12,186 508,364 532,550 1,870,050 1,870,050 4,793,200 Temecula Creek Fencing 9,786 490,214 318,000 818,000 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 50 572,650 572,700 Traffic Signal - Safety Lights and Signal Communications Upgrade- 89,803 3,166,098 3,255,900 Citywide Traffic Signal Fiber Optic Extension 265,000 1,410,000 1,675,000 Utility Undergrounding - Citywide 147,767 96,608 244,375 Vacant Parcel Clean-up and Beautification 360,000 360,000 Infrastructure Total 48,968,783 36,840,408 9,420,264 2,973,660 13,874,778 1,788,660 3,873,690 117,740,242 Parks/Recreation Projects Children's Museum Enhancement Project 336,799 208,290 545,090 Community Recreation Center Splash Pad & Shade Structures 1,682,640 894,508 2,577,147 Dog Park Renovation 988,486 189,514 1,178,000 Empire Creek Improvements 923,948 4,191,231 5,115,179 Harveston Community Park Building Renovation and Expansion 157,131 60,000 217,131 Infill Recreational Amenities 10,606 389,394 400,000 Long Canyon Creek Park Restrooms 15,427 1,292,503 190,000 1,497,930 Park Restrooms Renovations, Expansion and Americans With Disabilities 276,347 1,103,453 1,379,800 Act (ADA) Improvements Parks Improvement Program 3,397,592 680,782 4,078,374 Pickleball Courts 860,274 2,876,604 3,736,878 Playground Equipment Enhancement & Safety Surfacing 5,317,925 399,999 500,000 1,439,725 7,657,649 Ronald Reagan Sports Park Hockey Rink 231,668 3,888,738 4,120,406 Ronald Reagan Sports Park Restroom Expansion & Renovation 1,326,285 150,204 1,476,489 Ronald Reagan Sports Park Skate Park 191,569 3,868,431 2,050,000 6,110,000 Annual Operating Budget 1 277 CAPITAL PROJECT EXPENDITURE SUMMARY Project Sports Court Resurfacing Sports Field Lighting - Light Emitting Diode (LED) Conversion Uptown Temecula Sports Park Vail Ranch Park Restrooms Parks/Recreation Total Proiects Funded by Community Facilities District Bonds Butterfield Stage Road Extension Nicolas Road Extension & Improvements Projects Funded by Community Facilities District Bonds Total City of Temecula Fiscal Year 2025-26 Annual Operating Budget 255,990 114,267 200,000 100,000 100,000 770,257 1,065,417 1,664,583 2,730,000 136,922 2,240,078 12,547,822 14,924,822 25,292 1,297,638 70,000 1,392,930 16,276,367 22,242,935 3,010,000 1,439,725 12,647,822 4,291,231 59,908,080 39,886,327 1,520,702 41,407,029 11,784 22,172,876 22,184,660 39,898,111 23,693,578 63,591,689 278 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget EXPENDITURE SUMMARY BY PROJECT TYPE Capital Protect Expenditures by Type CFD-Funded, 63,591,689, 7% Parks/Recreation, 59,908,080, 7% Infrastructure, 117,740,242, 13% Housing, 20,401,000, 2% Circulation, 632,429,570, 71 PROJECTED EXPENDITURES: $894,0701582 Annual Operating Budget 1 279 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Assembly Bill 2766 Bike Lane and Trail Program - Citywide 325,638 139,075 50,000 160,000 175,000 185,000 185,000 1,219,713 Bike Lane and Trail Program - Temecula Creek South Side Trail 67,845 0 0 0 0 0 0 67,845 Electric Vehicles Charging Station 47,000 0 0 0 0 0 0 47,000 Nicolas Road Multi -Use Trail Extension 0 450,000 0 0 0 0 0 450,000 589,075 50,000 160,000 175,000 185,000 185,000 1,784,558 Project Funding 440,483 Revenue Projection 880,226 138,814 158,789 161,964 165,204 168,508 171,878 439,743 (10,518) 98,271 100,235 90,439 73,946 60,824 Available Funding Capital Financing Margarita Recreation Center 6,405,000 0 0 0 0 0 0 6,405,000 6,405,000 0 0 0 0 0 0 6,405,000 Project Funding Revenue Projection 6,405,000 0 0 0 0 0 0 0 0 0 0 0 0 0 Available Funding Community Facility Districts Butterfield Stage Road Extension 38,401,739 635,200 0 0 0 0 0 39,036,939 French Valley Parkway/1-15 Improvements - Phase II 1,005,840 0 0 0 0 0 0 1,005,840 I-15/State Route 79 South Ultimate Interchange 502,211 0 0 0 0 0 0 502,211 Nicolas Road Extension & Improvements 11,784 14,418,783 0 0 0 0 0 14,430,567 15,053,983 0 0 0 0 0 54,975,557 Project Funding 39,921,574 Revenue Projection 58,818,177 0 0 0 0 0 0 18,896,603 3,842,620 3,842,620 3,842,620 3,842,620 3,842,620 3,842,620 Available Funding Community Reinvestment Program Old Town Temecula Parklets Program 68,866 381,134 0 0 0 0 0 450,000 Sixth Street Improvements 0 115,000 0 0 0 0 0 115,000 Temecula Creek Fencing 9,786 490,214 0 0 0 0 0 500,000 Uptown Temecula Affordable Housing Site 0 1,000,000 0 0 0 0 0 1,000,000 Vacant Parcel Clean-up and Beautification 0 360,000 0 0 0 0 0 360,000 Vine Creek Affordable Housing Project 0 4,000,000 0 0 0 0 0 4,000,000 78,652 6,346,348 0 0 0 0 0 6,425,000 Project Funding Revenue Projection 78,652 6,346,348 0 0 0 0 0 280 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Available Funding 0 0 0 0 0 0 0 Development Impact Fees (DIF) DIF - Corporate Facilities City Facilities Rehabilitation 250,000 30,000 0 0 0 0 0 280,000 City Facility Security 0 0 25,000 0 0 0 0 25,000 City Security Camera System 752,087 0 0 0 0 0 0 752,087 Dog Park Renovation 0 100,000 0 0 0 0 0 100,000 Fire Station 73 Gym/Garage 0 43,651 50,000 0 0 0 0 93,651 Fire Station 84 Training Room Renovation 0 85,000 577,131 0 0 0 0 662,131 Murrieta Creek Improvements 0 130,000 15,000 0 0 0 0 145,000 Old Town Security Camera & Sound System 548,651 51,349 0 0 0 0 0 600,000 1,550,738 440,000 667,131 0 0 0 0 2,657,869 Project Funding Revenue Projection 2,014,936 75,000 331,107 352,453 141,410 299,398 103,522 464,198 99,198 (236,826) 115,627 257,037 556,435 659,957 Available Funding DIF - Fire Facilities Fire Station 73 Gym/Garage 102,210 25,126 0 0 0 0 0 127,336 Fire Station 84 Training Room Renovation 0 448,248 0 0 0 0 0 448,248 102,210 473,374 0 0 0 0 0 575,584 Project Funding Revenue Projection 147,294 13,000 133,581 281,498 139,491 236,771 130,961 45,084 (415,290) (281,710) (212) 139,279 376,050 507,011 Available Funding DIF - Library Library Alternate Emergency Operations Center Enhancements 0 700,000 0 0 0 0 0 700,000 Library Technology Enhancements 0 240,000 0 0 0 0 0 240,000 940,000 0 0 0 0 0 940,000 Project Funding Revenue Projection 2,025,077 210,000 162,022 457,041 218,397 183,773 167,732 2,025,077 1,295,077 1,457,099 1,914,140 2,132,537 2,316,310 2,484,042 Available Funding DIF - Open Space & Trails Bike Lane and Trail Program - Citywide 72,177 0 0 0 0 0 0 72,177 Bike Lane and Trail Program - RRSP Trails 59,133 0 0 0 0 0 0 59,133 Nicolas Road Multi -Use Trail Extension 300,000 0 0 0 0 0 0 300,000 Santa Gertrudis Creek Phase II - Margarita Under -Crossing 0 1,562,908 0 0 0 0 0 1,562,908 Annual Operating Budget 1 281 CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE Funding Source - Proiect Name Project Funding Revenue Projection Available Funding DIF - Parks & Recreation Children's Museum Enhancement Project Community Recreation Center (CRC) Renovations Margarita Recreation Center Pickleball Courts Playground Equipment Enhancement & Safety Surfacing Ronald Reagan Sports Park Hockey Rink Ronald Reagan Sports Park Skate Park South Side Senior Center Uptown Temecula Sports Park DIF - Police Facilities City Security Camera System Margarita Recreation Center Traffic Signal Fiber Optic Extension Project Funding Revenue Projection Available Funding Project Funding Revenue Projection Available Funding DIF - Quimby Bike Lane and Trail Program - RRSP Trails Community Recreation Center (CRC) Renovations Harveston Community Park Building Renovation and Expansion Infill Recreational Amenities Parks Improvement Program Pickleball Courts Playground Equipment Enhancement & Safety Surfacing City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Actuals Amended Budget Projected Projected Projected Projected Cost 431,310 1,562,908 0 0 0 0 1,994,218 1,463,484 117,000 130,564 381,089 51,540 48,823 44,717 1,032,174 (413,734) (283,170) 97,919 149,459 198,282 242,999 145,090 0 0 0 0 0 0 145,090 1,521,208 0 0 0 0 0 0 1,521,208 600,000 0 0 0 0 0 0 600,000 256,718 1,193,282 0 0 0 0 0 1,450,000 1,040,000 0 0 0 0 0 0 1,040,000 0 1,014,974 0 0 0 0 0 1,014,974 0 0 314,624 0 0 0 0 314,624 0 0 100,000 0 0 0 0 100,000 0 0 0 2,000,000 0 0 2,000,000 3,563,016 2,208,256 414,624 0 2,000,000 0 0 8,185,896 7,069,131 400,000 447,944 1,307,422 176,826 167,502 153,418 3,506,115 1,697,859 1,731,179 3,038,601 1,215,427 1,382,929 1,536,347 1,121,113 0 0 0 0 0 0 1,121,113 111,256 25,744 0 0 0 0 0 137,000 0 0 0 649,000 0 0 0 649,000 1,232,369 25,744 0 649,000 0 0 0 1,907,113 1,464,933 35,000 189,778 304,957 59,585 123,643 55,141 232,564 241,820 431,598 87,556 147,141 270,784 325,925 24,828 665,172 0 0 0 0 0 690,000 2,966,351 84,241 0 0 0 0 0 3,050,592 157,130 0 0 0 0 0 0 157,130 10,605 389,395 0 0 0 0 0 400,000 250,000 0 0 0 0 0 0 250,000 202,601 58,399 0 0 0 0 0 261,000 440,000 0 500,000 500,000 0 0 0 1,440,000 282 1 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE Funding Source - Project Name Ronald Reagan Sports Park Hockey Rink Ronald Reagan Sports Park Skate Park Uptown Temecula Sports Park Project Funding Revenue Projection Available Funding DIF - Street Improvements De Portola Road/Jedediah Smith Road Roundabout Diaz Road Expansion French Valley Parkway/1-15 Improvements - Phase II Medians & Parkways - Citywide Medians & Traffic Calming Improvements - Citywide Murrieta Creek Bridge at Overland Overland Drive Extension Commerce Center Overland Drive Widening Rancho California Road Median Improvements Ynez Road Improvements - Phase I Ynez Road Improvements - Phase II Project Funding Revenue Projection Available Funding DIF - Traffic Signals Flashing Beacons & Speed Advisory Signs Traffic Signal - Equipment Enhancement Program - Citywide Traffic Signal - Installation - Citywide Traffic Signal - Safety Lights and Signal Communications Upgrade - Citywide Project Funding Revenue Projection Available Funding Development Impact Fee Total Project Funding Development Impact Fee Total Revenue Projection City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Actuals Amended Budget Projected Projected Projected Projected Cost 0 520,432 0 0 0 0 0 520,432 0 0 1,016,240 0 0 0 0 1,016,240 129,673 870,327 0 0 1,000,000 0 0 2,000,000 4,181,189 2,587,966 1,516,240 500,000 1,000,000 0 0 9,785,394 6,733,996 1,085,000 1,066,460 1,375,017 8,835 0 0 2,552,807 1,049,841 600,061 1,475,078 483,913 483,913 483,913 43,385 1,359,615 1,106,000 0 0 0 0 2,509,000 590 0 0 0 0 0 0 590 75,360 0 0 0 0 0 0 75,360 854,839 (188,001) 0 0 0 0 0 666,838 40,000 0 0 0 0 0 0 40,000 1,181,533 1,096,387 0 5,738,847 0 0 0 8,016,767 8,082,475 0 0 0 0 0 0 8,082,475 554,817 1,438,203 0 0 0 0 0 1,993,020 42,605 708,195 0 0 0 0 0 750,800 42,759 1,042,663 522,615 0 0 0 0 1,608,037 619,451 (272,196) 0 0 0 0 0 347,255 11,537,814 5,184,866 1,628,615 5,738,847 0 0 0 24,090,142 17,281,528 240,000 4,405,584 2,893,156 504,613 3,448,822 381,S66 5,743,714 798,848 3,575,817 730,126 1,234,739 4,683,561 5,065,127 81,284 0 0 0 0 0 0 81,284 541,788 0 0 0 0 0 0 541,788 1,299,810 262,873 0 375,000 0 300,000 0 2,237,683 0 594,590 0 0 0 0 0 594,590 1,922,882 857,463 0 375,000 0 300,000 0 3,455,345 2,185,304 40,000 626,330 412,528 71,793 498,399 54,012 262,422 (555,041) 71,289 108,817 180,610 379,009 433,021 24,521,528 14,280,577 4,226,610 7,262,847 3,000,000 300,000 0 53,591,561 40,385,683 2,215,000 7,493,370 7,765,161 1,372,491 5,007,130 1,091,071 Annual Operating Budget 1 283 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Development Impact Fee Total Available Funding 15,864,155 3,798,578 7,065,338 7,567,652 5,940,143 10,647,273 11,738,344 Facilities Replacement Fund Bike Lane and Trail Program - Great Oak Trail Lighting City Facilities Rehabilitation 2,071,271 1,922,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,993,666 Fire Station 84 Training Room Renovation 0 800,000 0 0 0 0 0 800,000 Mary Phillips Senior Center Enhancement and Renovation 279,694 0 0 0 0 0 0 279,694 10,073,360 Project Funding 2,350,965 2,722,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Revenue Projection 4,954,082 3,313,164 2,500,000 1,250,000 1,250,000 1,250,000 1,250,000 2,603,117 3,193,886 4,693,886 4,943,886 5,193,886 5,443,886 5,693,886 Available Funding General Fund City Facilities Rehabilitation 1,750,000 0 0 0 0 0 0 1,750,000 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 2,503,311 0 0 0 0 0 0 2,503,311 Comprehensive General Plan Update 1,057,141 1,182,859 500,000 0 0 0 0 2,740,000 French Valley Parkway/1-15 Improvements - Phase II 4,236,174 0 0 0 0 0 0 4,236,174 French Valley Parkway/1-15 Improvements - Phase III 30,000 0 0 0 0 0 0 30,000 1-15 Congestion Relief 1,606,216 302,494 0 0 0 0 0 1,908,710 Murrieta Creek Improvements 135,858 0 0 0 0 0 0 135,858 Old Town Parking Structure 1,000,000 0 0 0 0 0 0 1,000,000 Overland Drive Extension Commerce Center 235,422 0 0 0 0 0 0 235,422 Parks Improvement Program 1,003,059 0 0 0 0 0 0 1,003,059 Pavement Rehabilitation Program - Citywide 5,692,614 0 0 0 0 0 0 5,692,614 Sidewalks - Citywide 375,000 0 0 0 0 0 0 375,000 1,485,352 500,000 0 0 0 0 21,610,148 Project Funding 19,624,796 Revenue Projection 19,624,796 1,485,352 500,000 0 0 0 0 0 0 0 0 0 0 0 Available Funding Grants - Federal American With Disabilities Act (ADA) Transition Plan Implementation 631,062 431,459 325,000 325,000 325,000 325,000 325,000 2,687,521 Diaz Road Expansion 0 0 0 2,000,000 0 0 0 2,000,000 284 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost French Valley Parkway/1-15 Improvements - Phase II 24,512,035 27,090,325 0 0 0 0 0 51,602,360 I-15/State Route 79 South Ultimate Interchange 13,719,567 696,272 0 0 0 0 0 14,415,839 Mary Phillips Senior Center Enhancement and Renovation 1,477,200 (419,616) 0 0 0 0 0 1,057,584 Murrieta Creek Bridge at Overland 530,421 3,924,579 18,472,874 22,927,874 Sidewalks - Old Town Improvements 849,426 0 0 0 0 0 0 849,426 Traffic Signal - System Upgrade 394,215 95,295 0 0 0 0 0 489,510 42,113,926 31,818,314 325,000 20,797,874 325,000 325,000 325,000 96,030,114 Project Funding Revenue Projection 42,113,926 31,818,314 325,000 20,797,874 325,000 325,000 325,000 0 0 0 0 0 0 0 Available Funding Grants - State & Local Bike Lane And Trail Program - Citywide 19,857 0 0 0 0 0 0 19,857 Bike Lane Upgrades - Citywide 0 224,550 0 0 0 0 0 224,550 Community Wildfire Protection Plan 266,598 111,402 0 0 0 0 0 378,000 Comprehensive General Plan Update 310,000 500,000 0 0 0 0 0 810,000 De Portola Road/Jedediah Smith Road Roundabout 0 800,000 0 0 0 0 0 800,000 Dog Park Renovation 200,000 247,126 0 0 0 0 0 447,126 Electric Vehicles Charging Station 111,574 29,426 0 0 0 0 0 141,000 French Valley Parkway/1-15 Improvements - Phase II 21,406,924 26,193,076 0 0 0 0 0 47,600,000 French Valley Parkway/1-15 Improvements - Phase 111 0 5,000,000 0 0 0 0 0 5,000,000 1-15 Congestion Relief 1,250,000 0 0 0 0 0 1,250,000 I-15/State Route 79 South Ultimate Interchange 14,446,520 160,000 0 0 0 0 0 14,606,520 Local Roadway Safety Plan Update 0 0 120,000 0 0 0 0 120,000 Pedestrian Ramp Upgrades - Citywide 0 225,000 0 0 0 0 0 225,000 Santa Gertrudis Creek Phase 11 - Margarita Under -Crossing 0 1,502,000 0 0 0 0 0 1,502,000 Sidewalks - Pauba Road 0 362,600 0 0 0 0 0 362,600 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 0 492,930 0 0 0 0 0 492,930 Traffic Signal - Safety Lights and Signal Communications Upgrade - Citywide 0 2,441,310 0 0 0 0 0 2,441,310 Traffic Signal Fiber Optic Extension 0 552,850 0 0 0 0 552,850 Ynez Road Improvements - Phase 1 0 2,475,000 0 0 0 0 0 2,475,000 38,011,474 40,764,420 672,850 0 0 0 0 79,448,743 Project Funding Annual Operating Budget 1 285 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Revenue Projection 38,011,474 40,764,419 672,850 0 0 0 0 0 0 0 0 0 0 0 Available Funding Housing French Valley Parkway/1-15 Improvements - Phase III 1,669,794 0 0 0 0 0 0 1,669,794 Habitat for Humanity Old Town Units 0 1,261,000 0 0 0 0 0 1,261,000 Las Haciendas Affordable Housing Project 7,947,784 1,681,359 0 0 0 0 0 9,629,143 Uptown Temecula Affordable Housing Site 0 0 0 1,300,000 0 0 0 1,300,000 Vine Creek Affordable Housing Project 0 2,710,000 0 0 0 0 0 2,710,000 9,617,578 5,652,359 0 1,300,000 0 0 0 16,569,937 Project Funding Revenue Projection 9,617,578 5,652,359 0 1,300,000 0 0 0 0 0 0 0 0 0 0 Available Funding Measure A Bridge Maintenance 85,418 402,742 488,160 0 488,160 0 0 1,464,480 De Portola Road/Jedediah Smith Road Roundabout 0 0 1,160,000 0 0 0 0 1,160,000 Diaz Road Expansion 296,048 5,636,499 0 0 0 0 0 5,932,547 French Valley Parkway/1-15 Improvements - Phase II 1,627,914 0 0 0 0 0 0 1,627,914 Nicolas Road Multi -Use Trail Extension 0 600,000 0 0 0 0 0 600,000 Pavement Rehabilitation Program - Citywide 23,899,099 1,751,627 1,224,000 1,312,000 1,401,000 1,492,000 1,492,000 32,571,726 Sidewalks - Old Town Improvements 140,000 0 0 0 0 0 0 140,000 26,048,478 8,390,869 2,872,160 1,312,000 1,889,160 1,492,000 1,492,000 43,496,667 Project Funding Revenue Projection 31,132,539 5,818,512 1,138,000 1,224,000 1,312,000 1,401,000 1,492,000 5,084,061 2,511,704 777,544 689,544 112,384 21,384 21,384 Available Funding Measure S American With Disabilities Act (ADA) Transition Plan Implementation 83,093 324,227 78,660 78,660 78,660 78,660 78,660 800,620 Auto Mall Wayfinding Signs 0 200,000 535,218 0 0 0 0 735,218 Bike Lane and Trail Program - Great Oak Trail Lighting 0 352,808 0 0 0 0 0 352,808 Bike Lane and Trail Program - RRSP Trails 12,815 240,679 0 0 0 0 253,494 286 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Bike Lane And Trail Program - Temecula Creek South Side Trail 477,587 248,287 0 0 0 0 0 725,874 Bike Lane Upgrades - Citywide 50 49,900 0 0 0 0 0 49,950 Cherry Street Extension & Murrieta Creek Crossing 618,831 77,641 0 0 0 0 0 696,472 Children's Museum Enhancement Project 400,000 0 0 0 0 0 0 400,000 City Facility Security 100,000 150,000 0 0 0 0 0 250,000 City Security Camera System 2,164,091 454,494 0 0 0 0 0 2,618,585 Citywide Drainage Master Plan 482,200 326,353 43,000 0 0 0 0 851,553 Citywide Financial System Upgrade 613,184 0 0 0 0 0 0 613,184 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 5,500,000 (32,553) 0 0 0 0 0 5,467,447 Community Recreation Center (CRC) Renovations 863,166 774,908 0 0 0 0 0 1,638,074 Community Recreation Center Splash Pad & Shade Structures 1,682,639 894,508 0 0 0 0 0 2,577,147 Diaz Road Expansion 171,445 600,931 0 0 0 0 0 772,376 Dog Park Renovation 541,360 89,514 0 0 0 0 0 630,874 Empire Creek Improvements 0 923,949 0 0 0 0 0 923,949 Fiber Optic Communications Systems - Citywide 120,150 87,850 0 0 0 0 0 208,000 Fire Station 73 Gym/Garage 460,804 183,589 4,300,300 0 0 0 0 4,944,693 Fire Station 84 Training Room Renovation 709,861 681,965 227,245 0 0 0 0 1,619,071 Flashing Beacons & Speed Advisory Signs 215,446 42,554 0 0 0 0 0 258,000 French Valley Parkway/1-15 Improvements - Phase II 5,561,573 469,762 0 0 0 0 0 6,031,335 French Valley Parkway/1-15 Improvements - Phase III 166,184 525,633 200,000 200,000 200,000 0 0 1,291,817 1-15/State Route 79 South Interchange Enhanced Landscaping 509,989 620,306 0 0 0 0 0 1,130,295 Interstate 15 Corridor Branding and Visioning Improvements 0 200,000 0 0 0 0 0 200,000 Local Roadway Safety Plan Update 0 0 35,000 0 0 0 0 35,000 Long Canyon Creek Park Restrooms 15,427 1,292,503 190,000 0 0 0 0 1,497,930 Margarita Recreation Center 5,043,032 416,476 0 0 0 0 0 5,459,508 Mary Phillips Senior Center Enhancement and Renovation 952,411 (45,000) 0 0 0 0 0 907,411 Medians & Traffic Calming Improvements - Citywide 231,900 680,000 0 0 0 0 0 911,900 Murrieta Creek Bridge at Overland 120,666 879,334 0 0 0 0 0 1,000,000 Murrieta Creek Improvements 53,791 1,386,867 0 0 0 0 0 1,440,658 Nicolas Road Multi -Use Trail Extension 0 150,000 0 0 0 0 0 150,000 North General Kearny Street Improvements 4,785 372,552 0 0 0 0 0 377,337 Annual Operating Budget 1 287 CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE Funding Source - Project Name Old Town Parking Structure Old Town Security Camera & Sound System Park Restrooms Renovations, Expansion and Americans with Disabilities Act (ADA) Improvements Parks Improvement Program Pavement Management Program Update Pavement Rehabilitation Program - Citywide Pedestrian Ramp Upgrades - Citywide Pickleball Courts Playground Equipment Enhancement & Safety Surfacing Rainbow Canyon Road Pavement Rehabilitation Rancho California Road Median Improvements Ronald Reagan Sports Park Hockey Rink Ronald Reagan Sports Park Restroom Expansion & Renovation Ronald Reagan Sports Park Skate Park Santa Gertrudis Creek Phase II - Margarita Under -Crossing Sidewalks - Citywide Sidewalks - Old Town Improvements Sidewalks - Pauba Road Sixth Street Improvements Sports Court Resurfacing Sports Field Lighting - Light Emitting Diode (LED) Conversion Storm Drain Pipe Lining Temecula Creek Fencing Traffic Signal - Equipment Enhancement Program - Citywide Traffic Signal - Installation - Citywide Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide Traffic Signal - Safety Lights and Signal Communications Upgrade - Citywide Traffic Signal - System Upgrade Traffic Signal Fiber Optic Extension Uptown Temecula Sports Park City of Temecula Fiscal Year 2025-26 Annual Operating Budget 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Actuals Amended Budget Projected Projected Projected Projected Cost 0 405,000 0 0 0 0 0 405,000 570,335 89,665 0 0 0 0 0 660,000 347,800 1,032,000 0 0 0 0 0 1,379,800 2,041,218 398,782 0 0 0 0 0 2,440,000 0 85,020 0 0 0 0 100,000 185,020 2,000,000 0 1,000,000 0 0 0 0 3,000,000 50 49,950 0 0 0 0 0 50,000 400,955 1,624,923 0 0 0 0 0 2,025,878 3,837,924 400,000 0 939,725 0 0 0 5,177,649 0 350,000 0 0 0 0 0 350,000 6,234 143,766 0 0 0 0 0 150,000 231,668 1,853,332 0 0 0 0 0 2,085,000 1,326,285 145,914 0 0 0 0 0 1,472,199 191,570 3,868,430 719,136 0 0 0 0 4,779,136 776,839 1,758,376 0 0 0 0 0 2,535,215 774,922 342,653 0 0 0 0 0 1,117,575 1,138,877 (299,719) 0 0 0 0 0 839,159 65,316 529,208 100,000 0 0 0 0 694,524 142,486 834,839 0 0 0 0 0 977,326 255,990 114,267 200,000 0 100,000 100,000 0 770,257 1,065,417 1,364,583 0 0 0 0 0 2,430,000 12,186 508,364 532,550 0 1,870,050 0 1,870,050 4,793,200 0 0 318,000 0 0 0 0 318,000 933,160 1,271,840 260,000 260,000 260,000 260,000 0 3,245,000 236,242 558,758 0 0 0 0 0 795,000 50 1 79,720 0 0 0 0 0 1 79,770 0 220,000 0 0 0 0 0 220,000 297,390 0 0 0 0 0 0 297,390 0 265,000 0 208,150 0 0 0 473,150 7,249 1,369,751 0 0 0 0 0 1,377,000 288 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Utility Undergrounding - Citywide 244,375 0 0 0 0 0 0 244,375 Vail Ranch Park Restrooms 25,292 1,297,638 70,000 0 0 0 0 1,392,930 44,806,310 34,282,099 8,809,109 1,686,535 2,508,710 438,660 2,048,710 94,580,132 Project Funding Revenue Projection 46,806,310 34,282,099 8,809,109 1,686,535 2,508,710 438,660 2,048,710 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Available Funding Public Art Fund Project Funding Revenue Projection 167,257 700 1,850 2,400 2,350 650 0 167,257 167,957 169,807 172,207 174,557 175,207 175,207 Available Funding Reimbursements/Other Butterfield Stage Road Extension 932,090 0 0 0 0 0 0 932,090 Butterfield Stage Road Storm Drain Improvements 0 11,861,900 0 0 0 0 0 11,861,900 Community Recreation Center (CRC) Renovations 0 0 0 0 0 0 0 0 Electric Vehicles Charging Station 0 5,800 0 0 0 0 0 5,800 French Valley Parkway/1-15 Improvements - Phase II 6,023,250 0 1,000,000 0 0 0 0 7,023,250 French Valley Parkway/1-15 Improvements - Phase III 165,183 0 0 0 0 0 0 165,183 Harveston Community Park Building Renovation and Expansion 1,250,000 -1,190,000 0 0 0 0 0 60,000 1-15 Congestion Relief 2,600,000 0 0 0 0 0 0 2,600,000 1-15/State Route 79 South Interchange Enhanced Landscaping 2,500,000 0 0 0 0 0 0 2,500,000 1-15/State Route 79 South Ultimate Interchange 1,929,774 694,068 0 0 0 0 0 2,623,842 Medians & Traffic Calming Improvements - Citywide 0 25,000 0 0 0 0 0 25,000 Motor Car Parkway Improvements 0 750,000 0 0 0 0 0 750,000 Murrieta Creek Improvements 911,085 5,000 0 0 0 0 0 916,085 Nicolas Road Extension & Improvements 0 7,754,093 0 0 0 0 0 7,754,093 Parks Improvement Program 103,315 282,000 0 0 0 0 0 385,315 Pavement Rehabilitation Program - Citywide 302,454 0 0 0 0 0 0 302,454 Rainbow Canyon Road Pavement Rehabilitation 2,550,000 0 0 0 0 0 0 2,550,000 Rancho California Road Median Improvements 0 57,200 0 0 0 0 0 57,200 Ronald Reagan Sports Park Hockey Rink 0 500,000 0 0 0 0 0 500,000 Ronald Reagan Sports Park Restroom Expansion & Renovation 4,290 0 0 0 0 0 0 4,290 Annual Operating Budget 1 289 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Traffic Signal - Installation - Citywide 246,764 3,236 0 0 0 0 0 250,000 Ynez Road Improvements - Phase 1 435,750 0 0 0 0 0 0 435,750 19,953,955 20,748,297 1,000,000 0 0 0 0 41,702,252 Project Funding Revenue Projection 19,953,955 20,748,297 1,000,000 0 0 0 0 0 0 0 0 0 0 0 Available Funding S61/Road Maintenance and Rehabilitation Account (RMRA) 120,859 169,121 0 0 0 0 114,980 404,960 Pavement Management Program Update Pavement Rehabilitation Program - Citywide 11,509,528 5,929,305 2,827,154 2,883,697 2,941,371 3,000,198 3,000,200 32,091,453 11,630,387 6,098,426 2,827,154 2,883,697 2,941,371 3,000,198 3,115,180 32,496,413 Project Funding Revenue Projection 15,439,313 2,907,946 2,995,184 3,085,040 3,177,591 3,272,919 3,371,106 3,808,926 618,446 786,476 987,819 1,224,040 1,496,760 1,752,687 Available Funding Service Level C - Zone 28 Bike Lane and Trail Program - Great Oak Trail Lighting 460,191 39,809 0 0 0 0 0 500,000 460,191 39,809 0 0 0 0 0 500,000 Project Funding Revenue Projection 460,191 39,809 0 0 0 0 0 0 0 0 0 0 0 0 Available Funding Street Maintenance Fund Overland Drive Widening 0 2,937,307 1,927,477 0 0 0 0 4,864,784 Pavement Rehabilitation Program - Citywide 3,600,000 0 0 0 0 0 0 3,600,000 3,600,000 2,937,307 1,927,477 0 0 0 0 8,464,784 Project Funding Revenue Projection 9,766,190 2,234,728 0 0 0 0 0 6,166,190 5,463,611 3,536,134 3,536,134 3,536,134 3,536,134 3,536,134 Available Funding TEAM Fund Electric Vehicles Charging Station 188,277 110,652 0 0 0 0 0 298,929 Murrieta Creek Improvements 59,801 140,199 0 0 0 0 0 200,000 Sports Field Lighting - Light Emitting Diode (LED) Conversion 0 300,000 0 0 0 0 0 300,000 248,077 550,852 0 0 0 0 0 798,929 Project Funding Revenue Projection 882,480 20,552 0 0 0 0 0 634,403 104,103 104,103 104,103 104,103 104,103 104,103 Available Funding 290 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Technology Replacement Fund Citywide Financial System Upgrade 62,028 701,506 0 0 0 0 0 763,534 62,028 701,506 0 0 0 0 0 763,534 Project Funding Revenue Projection 2,942,776 0 0 0 0 0 0 2,880,748 2,179,242 2,179,242 2,179,242 2,179,242 2,179,242 2,179,242 Available Funding Transportation Uniform Mitigation Fee (TUMF) Butterfield Stage Road Extension 1,438,000 0 0 0 0 0 0 1,438,000 Diaz Road Expansion 1,065,923 5,665,077 0 0 0 0 0 6,731,000 French Valley Parkway/1-15 Improvements - Phase II 19,489,986 1,059,127 0 0 0 0 0 20,549,113 French Valley Parkway/1-15 Improvements - Phase III 1,301,405 1,698,595 0 0 0 0 0 3,000,000 1-15 Congestion Relief 0 3,500,000 0 0 0 0 0 3,500,000 1-15/State Route 79 South Ultimate Interchange 15,371,504 3,571,981 0 0 0 0 0 18,943,485 38,666,818 15,494,780 0 0 0 0 0 54,161,598 Project Funding Revenue Projection 38,666,818 15,494,780 0 0 0 0 0 0 0 0 0 0 0 0 Available Funding Uptown Temecula New Streets In Lieu Fee Las Haciendas Affordable Housing Project 0 500,857 0 0 0 0 0 500,857 0 500,857 0 0 0 0 0 500,857 Project Funding Revenue Projection 1,391,118 45,142 0 0 0 0 0 1,391,118 935,403 935,403 935,403 935,403 935,403 935,403 Available Funding Grand Total Project Funding 328,562,221 208,457,621 24,210,360 36,402,953 11,839,241 6,740,858 8,165,890 624,379,144 Grand Total Revenue Projection 388,498,542 173,326,335 25,594,152 37,272,974 10,113,345 11,863,866 9,749,765 Grand Total Available Funding 59,936,321 :0 Annual Operating Budget 1 291 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY FUNDING SOURCE 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Unspecified Bike Lane and Trail Program - Citywide 0 0 0 0 1,144,558 0 0 1,144,558 Bike Lane and Trail Program - Temecula Creek South Side Trail 0 0 0 0 8,593,350 0 0 8,593,350 Diaz Road Expansion 0 0 0 0 0 0 1,614,478 1,614,478 Empire Creek Improvements 0 0 0 0 0 4,191,230 0 4,191,230 French Valley Parkway/1-15 Improvements - Phase III 0 0 0 0 0 350,000 57,750,000 58,100,000 1-15 / French Valley Parkway Improvements -Phase IV 0 0 0 0 0 0 181,400,000 181,400,000 Interstate 15 Corridor Branding and Visioning Improvements 0 0 0 200,000 200,000 200,000 600,000 Overland Drive Widening 0 0 0 0 0 0 0 0 Rancho California Road Median Improvements 0 0 0 0 0 4,500,000 0 4,500,000 Uptown Temecula Sports Park 0 0 0 0 9,547,822 0 0 9,547,822 0 0 0 0 19,485,730 9,241,230 240,964,478 269,691,438 Project Funding Revenue Projection 0 0 0 0 0 0 0 0 0 0 0 (19,485,730) (28,726,960) (269,691,438) Available Funding Grand Total Project Funding 328,562,221 208,457,621 24,210,360 36,402,953 31,324,971 15,982,088 249,130,368 894,070,582 Grand Total Revenue Projection 388,498,542 173,326,335 25,594,152 37,272,974 10,113,345 11,863,866 9,749,765 59,936,321 24,805,035 26,188,827 27,058,848 5,847,222 1,729,001 (237,651,602) Grand Total Available Funding 292 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY- BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 2026-27 24327-29 2D2B-29 2029-3c, Project Capital Project Name Funding Source Actuals Amended Budget Projected Projected Projected Projected Cast CIRCULATION PRO}EGTS Butterrleid Stage Read Storm Drain mprovements County AD 159 4,008,270 4,008,270 Deve l oper Contri buts on 4,853,630 4,853,630 Reimbursements 3,00D,000 3,0D0,000 11,8b1,900 Total 11,8b1,900 CherryStreet Extension & Murrieta Creek Grassing Measure S 618,831 77,641 696,472 De Portola RoadfJedediah Smith Road Roundabout ❑IF -Street Improvements 43,385 1,359,615 1,10510D0 2,509,GN Grants 8DD,00D 8[]0,0D0 MeasureA 1110100D ly 160,000 4,469,000 Total 43,385 2,159,615 2126610W Diaz Road Expansion DIF-Street Improvements 590 950 Grants 2,0D[i,0170 2,000,0DD MeasureA 296,048 5,635,499 5,932,547 Measure 171,445 6M,931 772,376 TUMF (WRCOG) 1,065,923 5,665,077 6,731,0D0 Unspecified 1,614,478 1,514,479 11,9 a2,507 2,000,0D0 1,614,478 17,050,991 Total 1,534,006 F I as h i ng Beacons & Spe ed Advisory Signs DiF-Traffic Sign a Is 81,284 81,294 Measure S 215,446 42,554 25810D0 42,554 339,284 Total 295,730 French Valley Parkwayfl-15 Improvaements - Phase Il CFD 01-02 (Harveston) 1,005,840 110D51840 Developer Contribution Y 00011d0 1,006,om DlF-Street Improvements 75,360 75,360 General Fund 4,296,174 4,236,174 INFRA Grant 24,512,035 25,497,96-9 50,00D,000 MeasureA 1, 527,914 1,527,914 Measure S 5,561,573 4b9,762 6,031,335 Reimbursements 6,023,Z50 5,023,25o SAF ETEA-LU 1,602, 360 1,602,360 Annual Operating Budget 1 293 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 2D26-27 2027-28 2028-29 2029-30 Project Capi#al Project Name Funding Source ActualS Amended Budget Projected Projected Projected Projected Cost CIRCULATION PROJECTS improvement Program 21,A136,924 25,193,076 47,600,000 TUMF (CETAPJRCTC) 472,941 326,106 798,947 TUMF (RCTC) 3,016,562 3,016,562 TUMF (WRCOG) 16,000,583 733,021 15,733,604 54j912,290 11000,400 134,751,346 Total 83,939,055 French Valley Parkwayfl-15Improvements - Phase III Affordable Housing 1,659,794 1,669,794 General Fund 30,000 30,000 Measures 166,184 525,633 200,010 200,000 2001000 1,291,817 Reimbursements 165,183 165,183 Improvement Program 510KOW 510001000 TUMF (WRCOE) 1,301,405 11598,595 3100010W Unspecified 350,000 57,750,000 SR,100,000 7,2241228 200000 200,000 200000 &%,ON 57,750)M 59,25,6,794 Total 3,3S2_966 1-15 f French Valley Parkway Improvements -Phase IV Unspecified 181,400,000 191,400,0110 1-15Congestion Relief General Fund 1,6%,215 302,494 1,948,710 Reimbursement-Pechanga IGA 215KOW 2_9(MO00 Reimbursements 100,01)0 100,000 SHOPP 1, 250,000 1, 250,000 TUMF (CEMPfRCTC) 35Oo,O00 3,Si10,O00 3,802,494 9,258,730 Total 5,456,216 -15f3tate Route79 South Ultimate Interchange CF6O3-01 (Crowne Ha11) 502,211 502,211 Reimbursements 739,192 694,068 1,433,260 Reimbursements/Other 1,190,582 1,190,582 SAF ErEA-LU 1,439,839 1,439,839 Senate Bill 621 14,446,520 160,O00 14,606,520 STP (RCTFQ 12,279,728 696,272 12,975,000 TUMF (CErAPJRCTC) 5,352,215 47,785 5,400,OW TUMF (RCTC) 4,452,000 4,452,000 TUMF (WRCOG) 5,567,289 3,524,1% 9,091,485 5,122,321 1 51,091,897 Tvwl 45,969,577 294 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2 02 5-2 6 Total Prior Years 2024-25 Proposed 2026-27 2027-29 2028-29 202430 Project Capital Project Name Fundine Source Actuals Amended Budget Projected Projected Projected Projected Cost CIRCULATION PROJECTS Medians & Parkways - Citywide ❑IF -Street Irnprovemer,c_ ?5=,53 i.1R3,vv1 666,$3$ 750,OW Motor Car Parkwaylmprovements Trust Fund 75--.vE-- Murrieta Creek Bridge At0veriand DIF-Street Improvements 1,181,533 1,096,387 5,738,847 8,016,767 HBP-Highway Bridge Program 530,421 3,924,579 18,472,874 22,927,874 Measure S 120,666 879,334 1,00n,000 5,900,300 24,21L721 31,944,fAl Total 1,832,620 North General Kea rnyStreet Improvements Measure 4785' 372,552 3T7,337 Overiand Drive Extension Commerce Center ❑IF -Street Improvements 8,092,47.5 8,082,475 General Fund 235,422 235,422 8,517,897 Total 8,317,897 Overland Drive Widening DIF-Street Improvements 554,817 1,499,203 11993,020 Street Maintenance Fund 2,937,307 1,927,477 4,854,784 4,375,51i1 1,927,477 5f657,804 Total 554,917 Pavement Rehabilitation Program - Citywide Gas Tax 1,2001000 11200,000 General Fund 5,692,614 5,692,614 MeasureA 23,999,099 1,751,627 1,224,000 1,312,000 1,401,000 1,492,0110 1,492,000 32,571,726 Measure S 2,00010n0 1,000,000 310001000 Reimbursements 302,454 302,454 RMRA 10,309,528 5,929,3n5 2,827,154 2,883,697 2,941,371 3,000,198 3,0nn,200 30,891,453 Street Maintenance Fund 31600,000 3,60n,000 7,580.932 5,051,154 4,195,697 4,342,371 4,492,198 4,492,200 77,258.247 Total 47,003,695 Rainbow Canyon Road Pavement Rehabilitation Measure 5 350,000 350,000 Reimbursement-Pechanga IGA 2550100o 215501000 35o,0n0 Total 2,550,000 "900,0w0 RanchoCaliE4mia Road Median Improvements Developer Contribution 57.200 57,200 DIF-Street Improvements 42,605 709,195 750,80n MeasureS 6, 234 149.766 150,onn Unspecified 4,500,0W 4,51M OW 909,161 4,500,000 5,4-',BOW Total 49,83,91 Annual Operating Budget 1 295 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 2926-27 2627-28 2028-29 2024-30 Project Capital Project Name Funding Source Aduals Amended Budget Projected Projected Projected Projected Cast CIRCULATION PROJECTS TraffitSignal- Equipment Enhancement Program - Citywide CIF -Traffic Signals 541,788 541,788 Measure S 933,160 1,271,840 250,000 260,000 260,000 250,000 3,245,000 1,271,840 250,000 250,000 250,000 250,000 3,785,788 Total 1,474,948 Traffic SignaI- Installation - Citywide Developer Contribution 246,754 3,23fi 250,000 ❑IF -Traffic Signals 1,299,810 252,873 375,000 SWAN 2,237.683 Measure S 236,242 558,758 795,Ow 824,867 375,000 300,000 31282,583 Total 1,782,815 TrafficSignal- System Upgrade Program 394,215 95,295 489,510 Measure S 297,3=10 297, 390 95,295 786,900 Total 591.605 Ynez Road Improvements - Phase l Developer Contribution 435,750 435,750 DIF-Street Improvements 42,759 1,042,663 522,615 1,50B4O37 Grants 2,475,000 2,475,000 4,518,797 Total 479.599 3,517,663 (272,196) 522,EP15 Ynez Road Improvements - Phase II 01F-Street Improvements 619,451 947,255 TOTALrN PROJECTS 207A05,1W% HOUSING PROJEM Habitat for Humanity Old Tl wn Units Affordable Housing Contribution of Land Las Haciendas Affordable housing Pro;:ea Uptown Temecula Affordable Housing Site Community Reinvestment Program Contribution of Land 7cta Affordable Housing Uptown Teme{uIa New Streets In Lieu Fee Total 7,947,784 2,192,215 1,000,000 7DD,DaD 551,000 1,251,000 7,947,784 1,f81,359 500 857 Total 1,000,000 700,000 551,000 1, 251,000 9,529,143 500,857 10,1,30,000 1,000,000 11 34 ON 1 300,000 11 300,000 21 300,000 296 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 l Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 202E-27 2027-29 2028-29 2024-34 Project Capital Project Name Funding 5aurce Artuals Amended Budget Projected Projected Projected Projected Cast HOUSING PROJECTS V�ne Creek Affordable Housing Prajert Affordable Housing 2,713,006 2,710,000 Community Reinvestment Program 4,000,000 4,0WOW Tota § 6,710,0W 5,710,000 iHF1UlSlRUGTT#ftE PfCD#ECTS Amencan With Disabilities Art (ADA) Transition Plan Implementation CDBG 631,062 491,459 S2s,000 325,044 525010 S25,000 S2s,000 2,687,521 Measure 5 83,Oq3 324,227 78,660 78,650 78,660 78,560 78,660 8W,620 755,697 403,660 403,660 403,660 403,560 403,660 3,488,141 Total 714,154 Auto Mail WayfindingSigns Measures 2w,060 5F6L 'm 755,218 Bike Lane And Trail Program - Citywide Assembly Bill 2755 325,638 159,075 50,00{D 150,000 175,000 185,000 185,000 1,219,713 Beyond Grant 19,&57 19,857 ❑IF -Open Space & Traits 72,177 72,177 Unspecified 1,144,559 1,144,558 139,075 501" 160,0w 1,3191558 185,000 1&5j)00 2,455,305 Total 417,672 Bike Lane and Trail Program - Great Oak Trail Lighting Measures 352,SU8 352,WR Service Level C-Zone 28 460,191 39,809 504,000 392,617 852,8w Total 460,191 Bike Lane and Trail Program - RRSPTraiis DIF-Open Space & Trails 59,133 59,133 6IF-Quimby 24,929 665,172 59Q000 Measure S 12,815 240.679 253,494 1,002,627 Total 96,776 905,851 Bike Lane And Trail Program -Temecula Creek South Side Trail Assembly Bill 2755 67,945 57,845 Measures 4T7,587 2413,287 725,874 Unspecified 8,593, S50 8,593,35{i 248,287 8,593,350 9,-3 7,069 Total 545,432 HSIP-Highway Safety Improvement Bike Lane Upgrades -Citywide Program 224,550 224,550 Measure 50 49,9W 49,950 274,450 274,506 Total 50 Annual Operating Budget 1 297 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 292E-27 2027-29 2028-29 2029-30 Project Capital Project Name Funding Source Acivals Amended Budget Projected Projected Projectted Projected Cos# FNFRASTRUCTURE PRDfECTS Bridge Maintenance MeasureA 85,413 402,742 5%000 49S.26C 489,160 1,464,490 290,)M City Faciiities. Rehabilitation ❑�F-Carparate Facilities 250,000 Facilities Replacement Fund 2,071,271 1,922,395 110W000 1,0B0,0d0 1,000,000 1,000,0N 11080,006 81943,666 General Fund 1,750,000 1,750,000 1,952,395 1,0U0,00D 11080,000 1,0U0,00D 1,060,0d0 1,0B0,000 11,023,666 Total 4,071,271 City Facility Security ❑iF-Carparate Faciiities; 25,000 25,00U Measure 5 1001008 150,000 250,0d0 15000 25,0D0 275,000 Total 1001" City Security Camera System DIF-CorporateFaciIities 752,087 752,087 DIF-Polite Facilities 1,121,115 1,121,113 Measure S 2,164,091 454,494 2,518,585 454,494 4,491,795 Total 4,037,241 Citywide Drainage Master Plan Measures 492,200 326,353 43,000 851,559 Citywide Hnane3al System Upgrade Measure S 613,184 513,184 Technology Replacement Fund 62,028 701,506 763,534 701,506 1,376,71E Total 675,212 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit General Fund 2_03,311 2,503,311 Measure 515001" (32,553) 5,457,447 (32,553) 7,970.758 Total 8,003,311 Community Recreation Center (CRC) Renovations DIF-Park & Rec Improvements 1,521,208 1,521,208 ❑ I F-Quimby 2,966,351 84,241 3,050,592 Measure 5 863,166 774,%B 1,53-9,074 859,149 5,209,874 Total 5,350,725 Community Wildfire Protection Plan Grants 255,598 111,402 378,000 Comprehensive General R'an Update General Fund 1,057,141 1,182,859 500,00Q 2,740,000 Grants 310,008 500,000 810,000 1,W859 500,000 3,550,000 Total 1367,141 298 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 l Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2024-30 Project Capital Project Name Fund1rig Saurce Actuals Amended Budget Projected Projected Projected Projected Cast INFRASTRUCTURE PROTECTS Electric Vehicles Charging 4tation Assembly Bdil N65 47.rE-C 47,000 Committee Grant 121,574 29,426 141,000 Reimbursements 5,a00 51800 TEAM 188, 277 119,652 298,929 492,729 Total 346,85i 145)678 Faber Optic Communications Systems - Citywide Measure 5 120,150 87.850 43,651 50,000 2f)9. 00 Fire Station 73GymfGarage 01F-CarporateFaciIities 93,651 QIF-Fire PFGteCtlon Facilities 102,210 25,126 127,336 Measure 5 460,804 183,589 4,300,SW 4,zA4,693 5,155,660 Total 563,014 252,M6 85,000 4,350,300 577,131 FireStation84TrainingRoom Renovation DIF-CorparateFacilities 652,131 DIF-Fire Protection Facilities 448,248 448,248 Facilities Replacement Fund amOD0 300,000 MeasureS 709,861 581,965 227,245 1,519,071 2,015,213 8Q4,375 3,529,450 Total 709,861 1-:IWState Raute 75 South Interchange Enhanced Landscaping Measure S 5MI989 620,396 3,33Q295 Resmbursement-Pechanga IGA 2300000 2,500,000 620,3i?6 Total 310091989 3,630,295 Interstate 15Corridor Branding and Visioning lmprovements Measure S 200,006 200,006 Unspecified 2001000 200,000 200,000 5w,000 200,000 200,000 200,0n0 200,000 800,000 Total Library Alternate Emergency Operations Center Enhancements 41F-Library Facilities. 700,000 700,000 Library Technology Enhancements ❑IF-Libra ry Facilities 240,000 244.ND Local Roadvray Safety Plan Update Grants 120,000 120,000 Measure S 35.000 55,000 155,000 J 155,000 Total Annual Operating Budget 1 299 Capital Project Name Margar to Revreat: cn Ceiiter City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 PF14r Years 2024-25 Proposed 202fr27 2027-28 2D28-29 2G24-3iJ Funding Saurce Actuals Amended Budget Projected Projected Projected Projected Capita! Financing ❑IF -Park & Rec Improvements DIF-Polite Facilities Measure S Mary Phillips Senior Center Enhancement And Renovation CCBG FaEiiit3es Replacement Fund Measure 5 Medians & Traffic Calming Improvements -Citywide DIF-Street Improvements Measure 5 Reimbursements Murrieta Creek lmprnvements ❑iF-Corporate Facilities General Fund Measure S Reimbursements TEAM Nicolas Road M u lti-Use Tra i I Extensian Assembly Rill 2755 ❑IF -Open Spate & Trails MeasureA Measure 5 OIzi Town Parking Structure General Fund Measure 5 INFRASTRUCTURE PROTECTS 6,405,006 600,000 111,256 25,744 5,043,032 415,476 Total 12,159,288 442,220 1,477,20G (419,616) 279,694 952.411 (45,OOO) Total 2,709,305 (464,f16) Total Total Total Total 40,000 231,900 580,OOO 25,000 271,900 705,000 130,OM 135, 658 59,791 1,395,967 411,085 5,000 59,861 140,199 1,562,066 3,160,535 450,OW 304,000 5w,ow 150,000 3w,ow 1,200,Ow 1,004,000 405,000 3100000 405,000 15,000 15,OW Total pr aj ed cast 6,4O5,ON 5w,OQO 137,OW 5,459,508 12, 6O1,SOB 1,05?,584 279, 694 907,411 2,244,689 40,000 911,900 25,000 976,900 145,Oi'iO 135,858 1,440,658 916,0a5 200,000 2,837,601 450,OW 300,OOO 5w,O00 150,000 1,5m,000 1,OQQ,OOt1 405,ON 1,405,O00 300 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2 02 5-2 6 Total PFIaF Years 2024-25 Proposed 2026-27 2027-28 2028-29 2024-30 Project Capital Project Name Funding Source Acivals Amended Budget Projected Projected Projected Projected Gas# INFF;AS-rWC UREPROFECT5 O;d -own Sezurity Camera & Sound System ❑iF-Corporate Facilities 548,651 51,349 600,0W Measures 570,355 8%665 660,000 1, 260,000 Total 1,118, 985 141,014 383,134 85,020 100,000 Old TowrrTemecula Parklets Program Community Reinvestment PrngrarrT 58,866 450,000 Pavement Management Program Update Measures 185,020 RMRA 120,859 159,121 114,980 404,960 589,980 Total 120,&54 254,141 214,980 225,000 PedestrianRampUpgrades- Citywide Program 225,000 Measure 5 K 49,950 50,000 274,950 275.000 Total K Santa Gertrudis Creek Phase II - Margarita Under -Crossing ❑3F-Open Space & Trails 1,552,%B 1,552,908 Measure S 776,B39 1,759,376 2,535,215 Senate Bill 1 1,50.2,000 1,502,000 4X3,284 5,500,123 Total 775,839 SidewaNs - Citywide General Fund 375,000 375,00n Measure 5 774,922 342,553 1,117,575 342,653 3,492,575 Total 1,149,922 Sidewalks - Old Town Improvements CDBG 949,425 849,425 Measure A 140,000 140,000 Measures i,138,877 (299,719) 839,159 (299,719) 1,B28,585 Total 2,128,303 Sidewalks - Paube Road Measures 55,316 529,208 1001000 694,524 Senate Bill 821 352,600 352,600 89L" 1001000 Ifik57,124 Total 55,315 Sixth Street Improvements Community Reinvestment Program 115,000 115,000 Measures 142,485 83A,839 977,926 949,839 1,092,326 Total 142,486 South Side Senior Center DIF-Park & Rec Improvements 1001000 1001000 Storm Drain Pipe Lining Measure 5 12,1&5 508,364 532,550 1,970,050 1,970,050 4,793,200 Annual Operating Budget 1 301 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 To#al Prior Yeays 2024-25 Proposed 2025-27 2027-28 2028-29 2024-34 Project Capital Project Name Funding Source Actuals Amended Budget Projected Projected Projected Projected Cast INFRASTRUCTURE PRO]ECTS 7emezu;a Creek Fencing Community Re 'vestment Frogram 9,iE6 4-90,214 500,000 Measure 5 318,000 318,000 818,000 -eta: 9,786 490,214 318,000 Traffic Signal - Pedestrian Signal HS;P-Highway Safety Improvement Equipment Upgrade Phase2-Citywide Program 492,930 492,930 Measure 5 50 79,720 79,770 572,700 Total 50 572,550 Traffic Signal - Safety Lights and Signal Communi[ations Upgrade- Citywide DIF-Traffic Signals 594,590 594,540 HSIP-Highway Safety Improvement Program 2,441, 310 2,441, 910 M easu re S 220,000 220,000 3, 255,9 W 3, 255,900 Total Traffic Sign a I F i ber Optic Extensi on DIF-Police Facilities 649,000 649,000 HSIP-Highway Safety Improvement Program 552,850 552,854) Measure S 2fi5,000 208,150 473,150 265,000 552,&% 857,150 11fi75,000 Total Utility Undergrounding-Citywide Measure 244,375 244,375 Vacant Parcel Clean-up and Reautification Community Reinvestment Program 3 ,CJG 360,3OG PROJECTSTOTAL INFRASTRUCTURE i is i 90 117,740241 pAflXVRECft AT;0N PROX- TS Children's Museum Enhanrement Project ❑IF -Park & Rec Improvements 145,0% 145,49G Measure S 400,000 400,00G 545,090 iotai 545,090 Co-mmunity Recreation Center Spiash Pad &Shade Structures Measure S 1,582,639 894�5(W 2,577,147 Dog Park Renovation d:F-Corporate Facilities 100,000 100,0m Grants 200,000 247,126 447,12E Mleasure 5 541 360 89,514 6SOA74 436,640 1,178,000 Total 741,360 302 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 l Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Capital Project Name Funding Source Actuals Amended Budget Projected Projected Projected Projected Cost PARKS/RECREATION PROJECTS Empire Creek Improvements Measure S 923,949 923,949 Unspecified 4,191,230 4,191,230 Tota 1 923,949 4,191,230 5,115,179 Harveston Co mmu n ity Pa rk Building Renovation and Expansion Developer Contribution 1,250,000 (1,190,000) 60,000 DIF-Quimby 157,130 157,130 Total 1,407,130 (1,190,000) 217,130 Infill Recreational Amenities DIF-Quimby 10,605 389,395 400,000 Long Canyon Creek Park Restrooms Measure S 15,427 1,292,503 190,000 1,497,930 Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements Measure S 347,800 Parks Improvement Program Pickleball Courts Playground Equipment Enhancement & DIF-Quimby General Fund Measure S Reimbursements DIF-Park & Rec Improveme DIF-Quimby Measure S 1,032,000 1,003,059 2,041,218 398,782 103,315 282,000 Total 3,397,592 680,782 256,718 1,193,282 202,601 58,399 400,955 1,624,923 Total 860,274 2,876,604 Safety Surfacing DIF-Park& Rec Improvements 1,040,000 DIF-Quimby 440,000 500,000 500,000 Measure S 3,837,924 1,339,72S Total 5,317,924 1,339,725 500,000 500,000 Ronald Reagan Sports Park Hockey Rink Developer Contribution DIF-Park & Rec Improvements DIF-Quimby Measure S Tota I 500,000 1,014,974 520,432 231,668 1,853,332 231,668 3,888,738 1,379,800 250,000 1,003,059 2,440,000 385,315 4,078,374 1,450,000 261,000 2,025,878 3,736,878 1,040,000 1,440,000 5,177, 649 7,657,649 500,000 1,014,974 520,432 2,085,000 4,120,406 Annual Operating Budget 1 303 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CAPITAL PROJECTS SUMMARY - BY PROJECT 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Capital Project Name Funding Source Actuals Amended Budget Projected Projected Projected Projected Cost PARKS/RECREATION PROJECTS Ronald Reagan Sports Park Restroom Expansion & Renovation Measure S 1,326,285 145,914 1,472,199 Reimbursements 4,290 4,290 Total 1,330,575 145,914 1,476,489 Ronald Reagan Sports Park Skate Park DIF-Park & Rec Improvements 314,624 314,624 DIF-Quimby 1,016, 240 1,016,240 Measure S 191,570 3,868,430 719,136 4,779,136 Total 191,570 3,868,430 2,050,000 6,110,000 Sports Court Resurfacing Measure S 255,990 114,267 200,000 100,000 100,000 770,257 Sports Field Lighting - Light Emitting Diode (LED) Conversion Measure S 1,065,417 1,364,583 2,430,000 TEAM 300,000 300,000 Tota 1 1,065,417 1,664,583 2,730,000 Uptown Temecula Sports Park DIF-Park & Rec Improvements 2,000,000 2,000,000 DIF- Quimby 129,673 870,327 1,000,000 2,000,000 Measure S 7,249 1,369,751 1,377,000 Unspecified 9,547,822 9,547,822 2,240,078 12,547,822 14,924,822 Total 136,922 Vail Ranch Park Restrooms Measure S 25,2921 1,297,638 70,000 1,392,930 PROJECTS FUNDED BY COMMUNITY FACILITIES DISTRICT BONDS PROJECTS Butterfield Stage Road Extension CFD 03-02 (Roripaugh Ranch) 38,401,739 635,200 39,036,939 Reimbursements 932,090 932,090 TU M F 1,438,000 1,438,000 41,407,029 Total 40,771,829 635,200 7,707,717 Nicolas Road Extension & I m p rove me nts CFD 03-02 (Rori pa ugh Ranch) 11,784 7,695,933 CFD 16-01 (Roripaugh Ranch -Phase II) 6,722,850 6,722,850 D e ve I o p e r Co n tri b u ti o n 7,754,093 7,754,093 Total 11,784 22,172,876 22,184,660 304 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF OPERATING & MAINTENANCE IMPACTS Maintenance and Operations PW17-01/711- CITY SECURITY CAMERA SYSTEM 5250- OTHER OUTSIDE SERVICES of Security Camera System 300,000 300,000 300,000 300,000 300,000 5211- SOFTWARE & FN19-01/724- CITYWIDE FINANCIAL SYSTEM UPGRADE MAINTENANCE Annual Software Maintenance 86,000 86,000 86,000 86,000 86,000 PW17-18/688 - CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT 5319-STREET LIGHTING Electricity Savings (695,286) (709,475) (723,665) (738,138) (752,901) 5215- REPAIR & MAINTENANCE - PW21-09/683 - ELECTRIC VEHICLES CHARGING STATION EQUIPMENT Electric Charging Vehicles Fees (3,100) (3,100) (3,100) (3,100) (3,100) PW17-19/690 -1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING 5415- LANDSCAPE MAINTENANCE Required by Caltrans 60,805 62,046 63,289 65,188 67,144 PW17-21/692- MARGARITA RECREATION CENTER 5100- SALARIES & WAGES Staffingfor MRC (4 positions) 526,609 548,551 570,493 591,600 614,370 Project Staffing for MRC 5119 - PART-TIME (PROJECT) (45 positions - 13.07 FTEs) 705,946 735,361 764,775 795,366 825,978 5240- UTILITIES Additional Utility Costs 71,371 72,828 74,285 77,034 79,999 5250- OTHER OUTSIDE SERVICES Janitorial/Security 129,251 131,888 134,526 139,504 144,873 1,433,177 1,488, 628 1,544,079 1,603,504 1,665,220 Maintenance fee for Old Town IT20-01/780 -OLD TOWN SECURITY CAMERA & SOUND SYSTEM 5215- REPAIR & MAINTENANCE Sound System 75,000 75,000 75,000 75,000 75,000 PWPE07-03/PW23-18- LONG CANYON CREEK PARK RESTROOMS 5250- OTHER OUTSIDE SERVICES Janitorial Services 29,866 30,475 31,085 31,706 32,340 PWPE-07/155- PARK RESTROOMS RENOVATIONS, EXPANSION AND ADA IMPROVEMENTS 5250- OTHER OUTSIDE SERVICES Janitorial Services 27,591 28,154 28,717 29,292 29,878 PWPE07-02- VAIL RANCH PARK RESTROOMS 5250- OTHER OUTSIDE SERVICES Janitorial Services Operating cost impacts are estimated by the Project Manager. * 2025-26 Proposed O&M Impacts are included in the Proposed Operating Budget The Projected Operating impacts have been reflected in the City's General Fund and TCSD 5-Year Financial Forecasts. 706 Annual Operating Budget 1 305 City of Temecula Fiscal Year 2025-26 Annual Operating Budget FUTURE YEARS PROJECTS The following projects have been identified through the City's Quality of Life Master Plan (QLMP) update and reflects the citizens' 20- Year Priorities Timeline. Additional capital projects identified by City staff are also reflected. Cost estimates will be reflected when the projects are included in the 5-Year Capital Improvement Program Budget. Project Title Department Butterfield Stage Road Separated Bike Lanes Public Works La Paz Street Widening from Ynez Road to Temecula Parkway Public Works Margarita Road Street Improvements Public Works North General Kearny Street Improvements Public Works Pauba Road Improvements - east of Margarita Road on the north side Public Works Rainbow Canyon Road Widening from Pechanga Parkway to City Limit Public Works Temecula Creek Bridge at Avenida de Missiones Public Works Rancho Way Bridge at 1-15 Public Works Murrieta Creek Bridge at Cherry Street (connecting at French Valley Parkway)* Public Works Western Bypass Corridor* Public/Private Development INFRASTRUCTURE / OTHER Acquisition of Fire Station 12 in Old Town* City Manager's Office Complete Temecula Loop Trail* Community Development Climate Action Plan* Community Development History Museum Renovation Community Development Integrated Watershed Management Plan* Community Development Bike Lane and Trail Program - RRSP Trails Public Works 1-15 Gateway Monument* Public Works Old Town Parking Structure(s)* Public Works Fire Training Facility with Tower* Public/Private Development Wildlife Crossing over 1-15* Public/Private Development PARKS and RECREATION Vail Ranch Park Site D Community Services Harveston Community Park Building Renovation and Expansion Public Works Mobile Library Resource Vans* Public/Private Development Organic Community Garden* Public/Private Development Tennis Complex* Public/Private Development Performing Arts Center* Public/Private Development Aquatics Facility with Olympic -size Swimming Pool* Public/Private Development * Items identified in the Quality of Life Master Plan - 2040 306 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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; d. Individual meetings are held with the budget team and each department to assist in the budget development process; Annual Operating Budget 1 307 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES e. The City Manager, in collaboration with the budget team, holds reviews each department budget request and makes recommendations to include in the proposed budget; 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 strive to maintain a balanced budget over the Five -Year Financial Forecast, by meeting the following targets:. 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 realistic 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; 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. 308 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 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 improvements, 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 affordable housing projects. Each proposed project is reviewed and discussed to ensure funding, timing, and necessity. The budget workshop is held annually 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 affordable housing projects. 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. S. 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, Affordable Housing, and Projects Funded By Community Facilities Districts) are assigned in accordance with the following guidelines: Annual Operating Budget 1 309 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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 Capital Improvement Program budget. 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. 310 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 Capital Improvement Program budget. 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 Capital Improvement Program budget period; 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 capital projects are also reviewed by the 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. Annual Operating Budget 1 311 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 online access to the City's financial management system by City staff; quarterly reports to the Council and Department Directors; and mid -year budget reviews. 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 Reports 2. Street Report 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 312 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 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. Annual Operating Budget 1 313 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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 Director of Finance 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, 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 CaIPERS pension and Other Post -Employment Benefits (OPEB) 5. Reduction, or avoidance, of City deb 314 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 programs, senior services, 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 Temecula Sheriff's Office, 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 Temecula Sheriff's Office 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. 2. Asset Management/Investment In accordance with the Asset Management and Replacement Policy, noted in Section VII., 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. Annual Operating Budget 1 315 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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 111.E 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: 316 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. VI. Staffing Policy A. Regular Staffing 1. The budget will fully appropriate the resources needed for authorized regular staffing. 2. Regular 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 benefits for its authorized regular workforce. Each regular employee will: a. Fill a position on the Schedule of Authorized Positions in the applicable, approved Annual Operating Budget; b. Receive compensation 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 demand for, term and expected results of the proposed activity; Annual Operating Budget 1 317 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES • Staffing and material costs including salary, benefits, equipment, uniforms, clerical support and facilities; • The ability of private industry to provide the services being demanded; • 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. B. Project Staffing 1. The hiring of project employees will not be used as a method for expanding the City's regular workforce on a long-term basis. 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, and interns. 3. The City Manager and Department Directors will encourage the use of project employees to meet temporary 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, isolated peak in workload, 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. 318 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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 continually 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. 4. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance. Annual Operating Budget 1 319 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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: 320 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. b. Sheriff 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 Sheriff 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. Annual Operating Budget 1 321 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 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 in accordance with established personnel policies and/or labor agreements. 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 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 Policy 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. 322 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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 Five -Year Financial Forecast. 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 contributions 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: Annual Operating Budget 1 323 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES a. The availability of transportation impact fees in funding a specific project will be analyzed on a case -by -case basis as plans and specifications, 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: • Defer the project until funds are available; • 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 securingthe 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. 324 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. S. The City will monitor all forms of debt annually coincident with the City's Five -Year Financial Forecast 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 different 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). Annual Operating Budget 1 325 BUDGET AND FISCAL POLICIES C. Debt Capacity City of Temecula Fiscal Year 2025-26 Annual Operating Budget 1. General Purpose Debt Capacity. The City will carefully monitor its levels of general-purpose debt. Because the general-purpose debt capacity is limited, it is important that the City only use general-purpose debt financing for high -priority projects where it 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. 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; 326 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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, staff 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 -out 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. S. 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. 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. Annual Operating Budget 1 327 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 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. The review of requests for conduit financing will generally be a two-step process: 328 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES a. First, obtaining Council's interest in the request, and establishing the ground rules for evaluating it; b. Second, return to Council with the results of this evaluation and recommend 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 costs incurred in evaluating the request; however, this should also be determined on a case -by -case basis. 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"; Annual Operating Budget 1 329 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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. 330 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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: Police protection services, including put not limited to, criminal justice services. 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. Annual Operating Budget 1 331 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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, unless otherwise agreed to by the City Council. 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. 332 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 6. Deposit/Reimbursement Agreement a. As stipulated earlier in 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 Director of Finance 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. 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. Annual Operating Budget 1 333 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 nearterm. 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. 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. 334 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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. 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 (CaIPERS) 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 was 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. Annual Operating Budget 1 335 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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 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. 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 336 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES 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, Property, and Employment 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. 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. XIV. Debt/Liability Paydown Strategy Policy At their meeting December 13, 2022, the Council adopted the City's Debt/Liability Paydown Strategy, which provides for a 7-year paydown schedule for the City's outstanding facility debt, the unfunded pension liability and the unfunded Other Post -Employment Benefits (OPEB) liability. As the economic conditions change, it will be necessary to reevaluate the Paydown Strategy to ensure adequate funding exists to maintain the paydown schedule and reach the goal of a 7-year paydown. The Paydown Strategy consists of a 15-year Financial Plan and includes the use of Available General Fund Balance and available resources in the IRC Section 115 Irrevocable Pension Trust to pay off the City's outstanding debt/liabilities in accordance with the table below (updated in January 2024): As of January 2024 Funding Sources Payoff Schedule Annual Updated Pension Available OPEB Pension Civic Center MRC Budgetary Change Year # Fiscal Year Trust Fund Balance Liability Liability Loan Loan Savings From Original 1 2022-23 5,000,000 19,913,606 7,250,000 12,624,607 5,038,999 (1,620,001) (364,988) 2 2023-24 7,000,000 10,792,003 3,254,000 14,538,003 (3,253,835) 1,893,000 3 2024-25 5,000,000 2,913,492 7,913,492 (5,522,203) (321,458) 4 2025-26 2,000,000 6,267,833 8,267,833 (5,598,373) 1,448,821 5 2026-27 8,455,217 8,455,217 (5,680,108) 6,277,059 6 2027-28 9,019,970 9,019,970 (5,763,328) (1,184,698) 7 2028-29 6,304,545 6,304,545 (5,851,032) (1,125,490) 8 2029-30 (5,938,215) 9 2030-31 (5,566,423) 10 2031-32 (4,356,798) 19,000,000 63,666,666 3,254,000 61,749,060 12,624,607 5,038,999 (49,150,315) 6,622,246 Change from Original 2,000,000 1,885,165 (2,107,000) 9,095,257 (327,393) (38,618) 8,999,878 Total Interest Sav 30,763,360 2,187,894 1,036,267 Annual Operating Budget 1 337 City of Temecula Fiscal Year 2025-26 Annual Operating Budget BUDGET AND FISCAL POLICIES The original OPEB and Pension liability amounts were determined as of June 30, 2020 valuation reports and are subject to change as CaIPERS investment returns fluctuate each year. Annual Budgetary Savings generated by the payoff of a specific debt/liability is redirected back into Available Fund Balance and applied to the payoff of future unfunded liabilities until all obligations are paid off. The CalPERS Pension Unfunded Liability will be considered "paid off" when the City Pension Plan's Funded Status, as defined by CalPERS, is equal to or greater than 100%. To achieve this Funded Status within the 7-year target, annual Additional Discretionary Payments (ADPs) will be made directly to CalPERS, as noted in the above schedule. Any deviations from the Paydown Strategy's 15-Year Financial Plan that trigger less than $4 million in Available Fund Balance in any year of the forecast is cause for reevaluating the paydown timeline. Economic impacts that could trigger the reevaluation include: (1) Economic conditions, including recession or potential recession, (2) Decrease in General Fund revenue, (3) Increase in General Fund expenditures, (4) Declining interest earnings in CaIPERS' Public Employees' Retirement Fund (PERF) portfolio, (5) Declining investment earnings in the City's IRC Section 115 Irrevocable Pension Trust Each year, as part of the Annual Operating Budget process and the Mid -Year Budget process, the 15-Year Financial Plan shall be updated and reevaluated to ensure adequate Available General Fund Balance and Pension Trust balances exist to make the Pension Liability payments, or ADPs, as outlined in the table above. If the funding sources are not adequate to maintain Available Fund Balance in excess of $4 million each year of the forecast, an alternative paydown schedule shall be presented for City Council consideration. An Operating Budget Surplus is defined as the excess amount over the budgeted Revenue over Expenditures calculation. In the event of any remaining Operating Budget Surplus after contributions are made to the City's IRC Section 115 Irrevocable Pension Trust in accordance with Budget Policy XI, additional ADPs may be made from the remaining surplus, up to $2 million per fiscal year. Additional ADPs may be programmed through the Annual Operating Budget process each year, as approved by Council. 338 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF CHANGES IN AUTHORIZED POSITIONS, PERSONNEL AND BENEFIT COSTS Total authorized Full Time Equivalent (FTE) positions equal 202.20 authorized positions, including one authorized/unfunded position (Principal Planner in the Community Development department). The total reflects an increase of 3.00 positions compared to the prior year, of which 2.00 were added as part of the Fiscal Year 2024-25 Mid -Year Budget update. All positions added since last fiscal year are summarized by department below: ➢ Community Development (1 position) ■ Assistant Director of Community Development ➢ Fire Department (1 position) ■ Office Specialist I ➢ Public Works (1 position) ■ Signal Technician I Total Authorized Positions remains below the peak in 2007-08 by 8.55 positions. Authorized Positions 250.00 200.00 150.00 100.00 50.00 City of Temecula Authorized Positions Trend 2001 - 2025 Ob Oy Oro Oq 1Y Ny Ny N, N11 ov- 'y'1' ,y'1% J�O~ni ,�O,tiP +ryO,L�i F F F F E 4 F F F E 4 4 F F E F F F F E 4 F F E F General Fund Revenue $120,000,000 $100,000,000 $S0000,000 $6Q000,000 $40000,000 $20000,000 In addition to the Authorized Positions, the City employs seven Limited Term positions to support the implementation of the City's new Human Resources/Payroll software system. A significant number of part-time, non-benefitted Project employees also are employed to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2025-26, an estimated 90.4 full-time equivalents will be hired as seasonal and part-time support. Public Safety personnel are provided through contracts with Riverside County and CalFire. A total of 117 Sworn Sheriff's Deputies, 18 non -sworn Community Service Officers, and three Sheriff Service Officers are included in the Temecula Sheriff's Office budget, and a total of 79 Fire personnel are reflected in the Fire Department budget for FY2025-26. Annual Operating Budget 1 339 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF CHANGES IN AUTHORIZED POSITIONS, PERSONNEL AND BENEFIT COSTS Employee Salaries In accordance with the City's labor agreements, a 2.3% cost of living adjustment will go into effect July 1, 2025. The salary and benefits contained in the Adopted 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 theirjob duties by an independent consultant, to determine the proper job classification for the work performed. In accordance with the provisions of the MOU and MCP, a total of 23 employees are recommended for reclassification, effective July 1, 2025. The expected fiscal impact of these reclassified positions is $127,065. Employee Benefits The City contributes to the California Public Employees Retirement System (CAPERS), 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. CAPERS 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 CAPERS pension for eligible personnel for Fiscal Year 2025-26 is budgeted to be $7,572,785. 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 2025-26 is estimated to be $4,384,800. 340 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF AUTHORIZED POSITIONS As of July 1, 2025 CITY COUNCIL Councilmember FY2025-26 Number of Positions 5.0 Salary Schedule Monthly Salary Minimum Maximum 1,900 2,100 Bargaining Unit*** N/A Exempt/Non- Exempt E City Council Subtotal: 5.0 CITY MANAGER Assistant City Manager 1.0 19,138 27,043 Exec E Assistant to the City Manager 1.0 11,762 16,621 MCP E City Manager 1.0 N/A 29,747 Contract E Deputy City Manager 1.0 17,401 24,586 Exec E Executive Assistant 1.0 6,190 8,745 MCP E Senior Office Specialist 1.0 4,956 6,344 Rep NE City Manager Subtotal: 6.0 OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT 1.0 5,337 6,833 Rep NE Administrative Assistant Economic Development Manager 1.0 10,655 15,056 MCP E Multimedia Coordinator 1.0 7,003 8,965 Rep NE Senior Management Analyst 2.0 8,121 11,475 MCP E Office of Public Information & Economic Development Subtotal: 5.0 CITY CLERK Deputy City Clerk 1.0 7,923 11,194 MCP E Director of Legislative Affairs/City Clerk 1.0 15,432 21,805 Exec E Management Assistant 1.0 5,748 7,356 Rep NE Records Manager 1.0 7,178 10,143 MCP E Records Technician 1.0 4,169 5,337 Rep NE City Clerk Subtotal: 5.0 HUMAN RESOURCES Assistant Director of HR/Risk Management 1.0 12,055 17,033 MCP E Director of HR/Risk Management 1.0 15,432 21,805 Exec E Human Resources Supervisor (Confidential) 1.0 7,003 9,894 MCP NE Management Assistant (Confidential) 2.0 5,748 8,121 MCP NE Senior Management Analyst 1.0 8,121 11,475 MCP E Senior Management Analyst (underfill as Management Analyst) 1.0 8,121 11,475 MCP E Human Resources Subtotal: 7.0 FINANCE Accountant 1/11 2.0 7,178 9,653 Rep NE Accounting Assistant (Cashier & AP) 3.0 5,079 6,502 Rep NE Accounting Technician 1/II 1.0 5,607 7,542 Rep NE Annual Operating Budget 1 341 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF AUTHORIZED POSITIONS As of July 1, 2025 Assistant Director of Finance FY2025-26 Number of Positions 1.0 Salary Schedule Monthly Salary 12,983 18,344 Bargaining Unit' MCP Exempt/Non- Exempt E Director of Finance 1.0 15,818 22,351 Exec E Finance Manager 1.0 9,188 12,983 MCP E Fiscal Services Manager 2.0 10,655 15,056 MCP E Management Analyst 2.0 7,003 9,894 MCP E Senior Accountant (Confidential) 1.0 8,325 11,762 MCP NE Senior Accounting Technician 1.0 6,502 8,325 Rep NE Senior Accounting Technician - Payroll (Confidential) 1.0 6,502 9,188 MCP NE Finance Subtotal: 16.0 INFORMATION TECHNOLOGY Assistant Director Information Technology/Support Svcs 1.0 12,665 17,897 MCP E Director of Information Tech no logy/Su ppo rt Svcs 1.0 15,432 21,805 Exec E Information Technology Manager 1.0 11,475 16,212 MCP E Information Technology Specialist 1/11 (Confidential) 2.0 6,190 9,188 MCP NE Information Technology Supervisor (Confidential) 4.0 7,923 11,194 MCP NE Information Technology Supervisor (Multimedia Services) (Confidential) 1.0 7,923 11,194 MCP NE Information Technology Technician 1/11 0.5 5,337 7,923 MCP NE Management Analyst 1.0 7,003 9,894 MCP E Senior Administrative Assistant 1.0 5,892 7,542 Rep NE Senior Information Technology Specialist (Confidential) 2.0 7,178 10,143 MCP NE Support Services Information Technology Technician 1/11 0.5 5,337 7,923 MCP NE Office Specialist 1/11 - AM 0.6 4,273 5,748 Rep NE Office Specialist 1/11 - PM 0.6 4,273 5,748 Rep NE Support Services Supervisor 1.0 4,956 6,344 Rep NE Information Technology Subtotal: 17.2 COMMUNITY DEVELOPMENT Assistant Director of Community Development 1.0 12,983 18,344 MCP E Director of Community Development 1.0 15,818 22,351 Exec E Principal Management Analyst 1.0 8,965 12,665 MCP E Senior Administrative Assistant 1.0 5,892 7,542 Rep NE Planning Assistant Planner 1.0 6,502 8,325 Rep NE Associate Planner I (underfill as Planning Technician) 1.0 7,542 9,653 Rep NE Associate Planner 1/11 2.0 7,542 10,655 Rep NE Community Development Technician 1 1.0 5,748 7,356 Rep NE Community Development Technician 11 (underfill as Comm Dev Tech 1) 2.0 6,344 8,121 Rep NE Planning Manager 1.0 11,194 15,818 MCP E Principal Management Analyst 1.0 8,965 12,665 MCP E 342 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF AUTHORIZED POSITIONS As of July 1, 2025 Principal Planner FY2025-26 Number of Positions 1.0 Salary Schedule Monthly Salary 10,143 14,329 Bargaining Unit' MCP Exempt/Non- Exempt E Senior Community Development Technician 2.0 7,003 8,965 Rep NE Senior Management Analyst 0.1 8,121 11,475 MCP E Senior Office Specialist 1.0 4,956 6,344 Rep NE Senior Planner 1.0 9,188 12,983 MCP E Building and Safety/Code Enforcement Building Inspector 1 1.0 6,665 8,533 Rep NE Building Inspector 11 2.0 7,356 9,417 Rep NE Building Official 1.0 11,762 16,621 MCP E Code Enforcement Manager 1.0 8,325 11,762 MCP E Code Enforcement Officer 1 1.0 5,607 7,178 Rep NE Code Enforcement Officer II 1.0 6,190 7,923 Rep NE Field Supervisor - Code Enforcement 1.0 7,542 9,653 Rep NE Plan Checker 1.0 8,965 11,475 Rep NE Senior Administrative Assistant 2.0 5,892 7,542 Rep NE Senior Building Inspector 2.0 8,121 10,397 Rep NE Senior Code Enforcement Officer (underfill as Code Enforcement Officer 11) 1.0 6,833 8,745 Rep NE Senior Management Analyst 0.9 8,121 11,475 MCP E Community Development Subtotal: 33.0 PUBLIC WORKS Assistant Director of Public Works 1.0 13,981 19,755 MCP E Director of Public Works 1.0 15,818 22,351 Exec E Program Manager 1.0 8,965 12,665 MCP E Senior Administrative Assistant 1.0 5,892 7,542 Rep NE CIP Administration Assistant Engineer 1/11 1.0 7,178 9,653 Rep NE Associate Civil Engineer 1.0 9,653 12,357 Rep E Associate Civil Engineer (underfill as Assistant Engineer 11) 1.0 9,653 12,357 Rep E Associate Engineer 1 1.0 8,325 10,655 Rep E Associate Engineer II 2.0 9,188 11,762 Rep E Principal Civil Engineer 2.0 12,055 17,033 MCP E Senior Civil Engineer 1.0 10,923 15,432 MCP E Senior Public Works Inspector 2.0 7,923 10,143 Rep NE Senior Public Works Inspector (underfill as Public Works Inspector 11) 1.0 7,923 10,143 Rep NE Supervising Public Works Inspector 1.0 8,745 11,194 Rep NE Land Development/NPDES Associate Civil Engineer 1.0 9,653 12,357 Rep E Associate Civil Engineer (underfill as Associate Engineer 1) 1.0 9,653 12,357 Rep E Associate Engineer II 2.0 9,188 11,762 Rep E Engineering Tech 1/11 1.0 6,190 8,325 Rep NE Annual Operating Budget 1 343 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF AUTHORIZED POSITIONS As of July 1, 2025 Management Assistant (underfill as Senior Office Specialist) FY2025-26 Number of Positions 1.0 Salary Schedule Monthly Salary 5,748 7,356 Bargaining Unit' Rep Exempt/Non- Exempt NE Senior Management Analyst (underfill as Management Analyst) 1.0 8,121 11,475 MCP E Senior Public Works Inspector 1.0 7,923 10,143 Rep NE Traffic Associate Civil Engineer 1.0 9,653 12,357 Rep E Principal Civil Engineer 1.0 12,055 17,033 MCP E Senior Signal Technician 2.0 7,923 10,143 Rep NE Signal Technician 1 1.0 6,833 8,745 Rep NE Maintenance (Streets, Facilities, Parks) Custodian II - Facilities 2.0 3,871 4,956 Rep NE Field Supervisor - Trades 1.0 7,729 9,894 Rep NE Landscape Inspector II 1.0 6,502 8,325 Rep NE Lead Maintenance Worker - Electrician 1.0 7,003 8,965 Rep NE Lead Maintenance Worker - HVAC 1.0 7,003 8,965 Rep NE Lead Maintenance Worker - Streets (underfill as Maintenance Worker 11) 3.0 5,607 7,178 Rep NE Lead Maintenance Worker - Parks 2.0 5,607 7,178 Rep NE Maintenance Manager 1.0 11,762 16,621 MCP E Maintenance Superintendent 3.0 10,655 15,056 MCP E Maintenance Worker I - Facilities 1.0 5,472 7,003 Rep NE Maintenance Worker I - Parks 1.0 4,602 5,892 Rep NE Maintenance Worker I - Streets 5.0 4,602 5,892 Rep NE Maintenance Worker 11 - Facilities 3.0 6,039 7,729 Rep NE Maintenance Worker 11 - Parks 1.0 5,079 6,502 Rep NE Maintenance Worker 11 - Streets 2.0 5,079 6,502 Rep NE Management Analyst 1.0 7,003 9,894 MCP E Park Attendant II 3.0 6,190 7,923 Rep NE Senior Landscape Inspector 1.0 7,178 9,188 Rep NE Senior Office Specialist (underfill as Office Specialist 11) 1.0 4,956 6,344 Rep NE Public Works Subtotal: 64.0 FIRE Community Development Technician II 1.0 6,344 8,121 Rep NE Fire Inspector II 1.0 8,533 10,923 Rep NE Management Analyst 1.0 7,003 9,894 MCP E Office Specialist 1/11 1.0 4,273 5,748 Rep NE Senior Community Development Technician (underfill as ComDevTech 1) 1.0 7,003 8,965 Rep NE Emergency Management Emergency Manager 1.0 8,533 12,055 MCP E Fire Subtotal: 6.0 344 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF AUTHORIZED POSITIONS As of July 1, 2025 COMMUNITY SERVICES Assistant Director of Community Services FY2025-26 Number of Positions 1.0 Salary Schedule Monthly Salary 12,665 17,897 Bargaining Unit*** MCP Exempt/Non- Exempt E Community Services Coordinator 1/11 6.0 5,748 7,729 Rep NE Community Services Manager 8.0 10,397 14,688 MCP E Community Services Specialist 1/II 1.0 4,956 6,665 Rep NE Community Services Superintendent 1.0 11,475 16,212 MCP E Community Services Supervisor 1/II 13.0 6,665 8,965 Rep NE Director of Community Services 1.0 15,432 21,805 Exec E Management Assistant 1.0 5,748 7,356 Rep NE Multimedia Coordinator 2.0 7,003 8,965 Rep NE Principal Management Analyst 1.0 8,965 12,665 MCP E Theater Technical Coordinator 1/II 1.0 5,748 7,729 Rep NE Theater Technical Coordinator 1/II (underfill as Theater Technical Specialist II) 1.0 5,748 7,729 Rep NE Community Services Subtotal: 37.0 Total By Department Positions City Council 5.0 City Manager 6.0 Economic Development 5.0 City Clerk 5.0 Human Resources 7.0 Finance 16.0 Information Technology 17.2 Community Development 33.0 Public Works 64.0 Fire 6.0 Community Services 37.0 Total Authorized/Funded Positions: 201.2 Total of Authorized/Unfunded Positions: 1.0 Total Authorized Positions: 202.2 ** Bargaining Units: Rep = Represented MCP = Management/Confidential Exec = Executive Annual Operating Budget 1 345 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF AUTHORIZED POSITIONS As of July 1, 2025 Authorized/Unfunded positions: Community Development - Planning Principal Planner 1.0 10,143 14,329 MCP E Limited Term Assignment Positions: COMMUNITY DEVELOPMENT Planning Technician 1.0 5,892 7,542 Rep NE COMMUNITY SERVICES Management Assistant FINANCE Senior Accounting Technician (Confidential) HUMAN RESOURCES Administrative Assistant (Confidential) Human Resources Technician 1/11 Senior Management Analyst INFORMATION TECHNOLOGY Office Specialist 1/II - PM 1.0 1 5,748 7,356 1 Rep I NE 1.0 1 6,502 9,188 1 MCP INE 1.0 5,337 7,542 MCP NE 1.0 5,472 8,121 MCP NE 1.0 8,121 11,475 MCP E 1.0 1 4,273 5,748 1 Rep INE 346 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF CHANGES IN ALLOCATED POSITIONS Adopted Unfunded Current Unfunded Proposed Unfunded 2023-24 2023-24 Changes 2024-25 2024-25 Changes 2025-26 2025-26 GENERALFUND CITY COUNCIL Council Members 5.00 CITY MANAGER Assistant City Manager 1.00 Assistant to the City Manager 0.65 City Manager 1.00 Deputy City Manager - Executive Assistant 1.00 Senior Office Specialist - 3.65 OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT Administrative Assistant Assistant to the City Manager Economic Development Manager Management Analyst Multimedia Coordinator Multimedia Specialist I Multimedia Specialist II Senior Management Analyst Senior Office Specialist EMERGENCY MANAGEMENT Emergency Manager Senior Management Analyst CITY CLERK Deputy City Clerk Director of Legislative Affairs/City Clerk Management Assistant Records Manager Records Technician FINANCE Accountant I Accounting Assistant Accounting Assistant - Cashier Accounting Technician 1/11 Assistant Director of Finance Director of Finance Finance Manager Fiscal Services Manager Management Analyst Senior Accountant (Confidential) Senior Accounting Technician Senior Accounting Technician (Confidential) 5.00 1.00 (0.15) 0.50 1.00 1.00 1.00 1.00 0.85 4.50 5.00 1.00 0.50 - 1.00 1.00 1.00 - 1.00 - 1.00 1.00 5.50 1.00 - 1.00 1.00 0.35 0.15 0.50 0.50 1.00 - 1.00 1.00 2.00 (1.00) 1.00 (1.00) - - - 1.00 1.00 1.00 (1.00) - - - - 1.00 1.00 (1.00) - - 1.00 1.00 1.00 2.00 1.00 (1.00) - - - 6.35 (0.85) 5.50 - 5.50 - - 1.00 1.00 1.00 1.00 (1.00) - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 5.00 5.00 - 5.00 1.00 1.00 1.00 2.00 1.00 1.00 - 1.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 (0.04) 0.96 0.96 0.88 0.12 1.00 1.00 1.85 0.01 1.86 1.86 1.00 1.00 2.00 2.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 2.00 (1.00) 1.00 - 1.00 14.73 0.09 14.82 1.00 15.82 Annual Operating Budget 1 347 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF CHANGES IN ALLOCATED POSITIONS Adopted Unfunded Current Unfunded Proposed Unfunded 2023-24 2023-24 Changes 2024-25 2024-25 Changes 2025-26 2025-26 HUMAN RESOURCES Assistant Director of HR/Risk Management Director of HR/Risk Management Human Resources Technician II Human Resources Supervisor Management Analyst Management Assistant (Confidential) Senior Management Analyst COMMUNITY DEVELOPMENT - PLANNING Asst. Director of Community Development Assistant Planner Associate Planner I Associate Planner 11 Community Development Technician I Deputy City Manager Director of Community Development Planning Manager Planning Technician Principal Management Analyst Principal Planner Senior Administrative Assistant Senior Community Development Technician Senior Management Analyst Senior Office Specialist Senior Planner COMMUNITY DEVELOPMENT - BUILDING & SAFETY Administrative Assistant Asst. Director of Community Development Building Inspector I Building Inspector II Building Official Code Enforcement Manager Code Enforcement Officer I Code Enforcement Officer II Community Development Technician I Community Development Technician II Deputy City Manager Director of Community Development Field Supervisor Code Enforcement Plan Checker Planning Technician Principal Management Analyst Senior Administrative Assistant Senior Building Inspector Senior Code Enforcement Officer Senior Community Development Technician - 1.00 1.00 0.50 0.50 - 0.50 2.00 2.00 (2.00) - - - 1.00 1.00 - - 1.00 1.00 0.40 0.50 0.90 0.20 1.10 2.20 (0.10) 2.10 (2.00) 0.10 5.10 0.40 5.50 (0.80) 4.70 0.50 0.15 0.65 0.65 2.00 (1.00) 1.00 1.00 - 1.00 1.00 1.00 1.00 - 1.00 1.00 1.10 (0.80) 0.30 0.30 0.50 0.05 0.55 (0.55) - - - - 0.65 0.65 1.00 - 1.00 - 1.00 1.10 0.90 2.00 (1.00) 1.00 0.30 0.05 0.35 0.20 0.55 - - 0.65 - - 0.65 1.00 1.00 0.65 0.75 - 0.08 0.83 - - 0.83 - 0.20 - 0.20 0.20 0.35 (0.05) 0.30 (0.20) 0.10 1.00 1.00 1.00 1.00 1.00 - 1.00 - 10.80 0.65 0.38 11.18 0.65 0.10 11.28 0.65 2.00 2.00 0.25 0.25 1.00 1.00 3.00 (1.00) 2.00 1.00 1.00 2.00 (1.00) 1.00 1.00 1.00 2.00 0.90 1.80 2.70 1.00 (1.00) - 0.25 0.25 0.95 0.95 1.00 1.00 0.90 (0.90) - 0.40 0.05 0.45 0.10 0.05 0.15 1.00 1.00 2.00 1.00 - 1.00 1.80 - 1.80 (2.00) - 0.25 1.00 2.00 - 1.00 1.00 1.00 - 1.00 2.00 2.70 (0.25) - 0.25 0.25 - 0.95 1.00 - 0.45 2.00 2.15 - 2.00 (1.00) - 1.80 348 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF CHANGES IN ALLOCATED POSITIONS Adopted Unfunded Current Unfunded Proposed Unfunded 2023-24 2023-24 Changes 2024-25 2024-25 Changes 2025-26 2025-26 Senior Management Analyst 0.90 0.90 0.90 20.45 20.45 20.45 PUBLIC WORKS - LAND DEVELOPMENT Administrative Assistant 0.20 (0.20) - Assistant Engineer II 1.00 - 1.00 Asst. Director of Public Works 0.25 0.75 1.00 Associate Civil Engineer - 1.00 1.00 Associate Engineer 1 1.00 (1.00) - Associate Engineer II 1.00 1.00 Director of Public Works 0.15 0.15 Engineering Tech 1 1.00 1.00 Management Analyst - 1.00 1.00 Management Assistant 0.60 (0.60) - Principal Management Analyst 0.10 0.10 Public Works Inspector II 0.90 0.90 Senior Administrative Assistant - 0.20 0.20 Senior Management Analyst 1.00 (1.00) - Senior Office Specialist - 1.00 1.00 Senior Public Works Inspector 0.75 - 0.75 1.15 9.10 7.95 (1.00) (1.00) 1.00 1.00 (0.10) (0.40) 1.00 1.00 2.00 0.15 1.00 1.00 0.90 0.20 0.60 0.75 1 8.60 PUBLIC WORKS Administrative Assistant 0.20 (0.20) Asst. Director of Public Works 0.30 (0.30) - - Associate Civil Engineer 1.00 - 1.00 1.00 Associate Engineer II 1.00 (1.00) - - Custodian II 0.10 0.10 0.20 0.20 Director of Public Works 0.40 - 0.40 0.40 Field Supervisor - Trades 0.15 0.15 (0.15) - Landscapelnspectorll 0.20 0.20 0.20 Lead Maintenance Worker 3.00 3.00 (3.00) - Lead Maintenance Worker -Electrician 0.10 0.10 0.10 Lead Maintenance Worker-HVAC 0.05 0.05 0.05 Maintenance Manager 0.85 0.85 0.85 Maintenance Superintendent 0.05 0.05 0.10 0.10 Maintenance Superintendent -Streets 1.00 - 1.00 1.00 Maintenance Worker 1 4.00 3.00 7.00 - 7.00 Maintenance Worker 11 2.00 (2.00) - 3.00 3.00 Management Analyst - - 0.35 0.35 Management Assistant 0.75 (0.40) 0.35 (0.35) - Office Specialist 11 - - 1.00 1.00 Principal Civil Engineer - - 1.00 1.00 Principal Management Analyst 0.35 - 0.35 (0.35) - Program Manager - 1.00 1.00 1.00 Public Works Inspector II 0.10 - 0.10 0.10 Senior Administrative Assistant - 0.20 0.20 0.20 Senior Civil Engineer 1.00 - 1.00 (1.00) - SeniorLandscapelnspector 0.20 0.20 0.20 Senior Office Specialist 1.00 1.00 (0.60) 0.40 Senior Public Works Inspector 0.25 0.25 0.25 Annual Operating Budget 1 349 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF CHANGES IN ALLOCATED POSITIONS Senior Signal Technician Signal Technician I PUBLIC WORKS - CIP ADMINISTRATION Administrative Assistant Assistant Engineer I Assistant Engineer II Asst. Director of Public Works Associate Civil Engineer Associate Engineer I Associate Engineer 11 Director of Public Works Engineering Manager Engineering Technician 11 Principal Civil Engineer Principal Management Analyst Senior Administrative Assistant Senior Civil Engineer Senior Public Works Inspector Supervising Public Works Inspector PARKS MAINTENANCE Asst. Director of Public Works Director of Public Works Landscape Inspector 11 Lead Maintenance Worker Lead Maintenance Worker -Electrician Maintenance Superintendent Maintenance Worker I Maintenance Worker II Management Assistant Management Analyst Park Attendant I Park Attendant II Senior Landscape Inspector SHERIFF'S OFFICE (Non -Contract Employees) Fiscal Services Manager FIRE (Non -Contract Employees) Community Development Technician I -Fire Community Development Technician II -Fire Fire Inspector I Fire Inspector II Management Analyst Office Specialist I Senior Community Development Technician General Fund Total Adopted Unfunded Current Unfunded Proposed Unfunded 2023-24 2023-24 Changes 2024-25 2024-25 Changes 2025-26 2025-26 2.00 2.00 (0.80) 1.20 - - 0.60 0.60 20.05 0.45 20.50 (0.30) 20.20 0.60 (0.60) - - - 1.00 1.00 (1.00) - 2.00 - 2.00 - 2.00 0.25 (0.25) - 1.00 1.00 1.00 1.00 - 1.00 - - 1.00 1.00 3.00 3.00 (1.00) 2.00 0.25 0.25 0.25 1.00 1.00 (1.00) - 1.00 (1.00) - - - 1.00 1.00 1.00 2.00 0.45 0.45 (0.45) - - 0.60 0.60 0.60 1.00 - 1.00 1.00 2.00 2.00 2.00 1.00 1.00 1.00 14.55 (0.25) 14.30 (0.45) 13.85 0.10 (0.10) - - 0.10 0.10 0.10 0.50 0.50 0.05 0.55 2.00 2.00 2.00 0.40 (0.30) 0.10 0.10 0.95 - 0.95 0.95 2.00 (1.00) 1.00 1.00 1.00 1.00 1.00 0.25 0.25 (0.25) - - - 0.25 0.25 2.00 2.00 (2.00) - 1.00 1.00 2.00 3.00 0.50 0.50 - 0.50 10.80 (1.40) 9.40 0.05 9.45 0.15 (0.15) - - - 0.15 (0.15) - - - 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 (1.00) - - - 1.00 1.00 1.00 1.00 - 1.00 - 1.00 - - 1.00 1.00 1.00 (1.00) - - - 4.00 - 4.00 1.00 5.00 - 129.58 0.65 0.67 130.25 0.65 1.10 131.35 0.65 350 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF CHANGES IN ALLOCATED POSITIONS Adopted Unfunded Current Unfunded Proposed Unfunded 2023-24 2023-24 Changes 2024-25 2024-25 Changes 2025-26 2025-26 SPECIAL REVENUE FUNDS CDBG Principal Management Analyst 0.20 0.20 0.20 0.20 0.20 0.20 AFFORDABLE HOUSING Asst. Director of Community Development 0.25 (0.15) 0.10 0.10 Deputy City Manager 0.25 (0.05) 0.20 (0.20) - Director of Community Development - - 0.10 Principal Management Analyst 0.10 (0.10) 0.80 0.80 - Principal Planner - 0.3S - 0.35 - - 0.35 Senior Administrative Assistant 0.15 (0.13) 0.02 - 0.02 - Senior Management Analyst 0.75 0.05 0.80 - (0.80) - - 1.50 0.35 (0.38) 1.12 0.35 (0.10) 1.02 0.35 Special Revenue Funds Total 1.70 0.35 (0.38) 1.32 0.35 (0.30) 1.22 0.35 COMMUNITY FACILITY DISTRICTS - FINANCE Director of Finance - - 0.04 0.04 - 0.04 - Finance Manager 0.12 (0.12) - - Fiscal Services Manager - 0.14 0.14 0.14 0.12 0.06 0.18 0.18 COMMUNITY SERVICES - PARKS AND RECREATION Aquatics Coordinator 1.00 (1.00) - - Aquatics Supervisor 1 1.00 (1.00) Aquatics Supervisor 11 2.00 (2.00) - - Assistant Director of Community Services - 1.00 1.00 1.00 Community Services Assistant 1.00 (1.00) - - - Community Services Coordinator 1 2.00 - 2.00 1.00 3.00 Community Services Coordinator 11 4.00 (1.00) 3.00 - 3.00 Community Services Manager 9.00 - 9.00 (1.00) 8.00 Community Services Specialist 1/11 - 1.00 1.00 1.00 Community Services Superintendent 2.00 (1.00) 1.00 - 1.00 Community Services Supervisor 1 4.00 1.00 5.00 2.00 7.00 Community Services Supervisor II 3.00 3.00 6.00 - 6.00 Community Services Supervisor 1/11 - 1.00 1.00 (1.00) - Custodian II 1.20 (0.10) 1.10 1.10 Director of Community Services 1.00 1.00 1.00 Field Supervisor -Code Enforcement 0.05 0.05 0.05 Field Supervisor -Trades 0.50 0.50 (0.40) 0.10 Landscape Inspector 11 0.20 0.20 0.20 Lead Maintenance Worker -Electrician 0.10 0.30 0.40 0.40 Lead Maintenance Worker -Facilities 0.10 - 0.10 (0.10) - Lead Maintenance Worker-HVAC 0.50 - 0.50 0.50 Maintenance Superintendent 0.35 (0.05) 0.30 0.30 Maintenance Worker I - Facilities 1.00 (0.55) 0.45 0.45 Annual Operating Budget 351 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF CHANGES IN ALLOCATED POSITIONS Adopted Unfunded Current Unfunded Proposed Unfunded 2023-24 2023-24 Changes 2024-25 2024-25 Changes 2025-26 2025-26 Maintenance Worker II - Facilities 1.50 1.50 0.45 1.95 Management Assistant 1.00 1.00 - 1.00 Multimedia Coordinator 2.00 2.00 2.00 Office Specialist II 1.00 1.00 (1.00) - Principal Management Analyst 1.00 1.00 1.00 Senior Landscape Inspector 0.20 0.20 0.20 Theater Technical Coordinator 1.00 1.00 1.00 Theater Technical Coordinator II 1.00 (1.00) - - Theater Technical Specialist II - 1.00 1.00 1.00 (0.40) 42.30 (0.05) 42.25 42.70 SERVICE LEVEL B Senior Signal Technician - - 0.80 0.80 Signal Technician 1 0.40 0.40 - 1.20 1.20 - SERVICE LEVEL D Maintenance Manager 0.15 0.15 - 0.15 Management Analyst - 0.20 0.20 Management Assistant 0.20 0.20 (0.20) - Principal Management Analyst 0.05 0.05 (0.05) - 0.40 (0.05) 0.35 0.40 SERVICE LEVEL L Maintenance Superintendent 0.05 0.05 0.05 0.05 0.05 0.05 LIBRARY Custodian 11 0.30 0.30 0.30 Field Supervisor -Trades 0.10 0.10 0.10 Landscape Inspector II 0.10 0.10 (0.05) 0.05 Lead Maintenance Worker -Electrician 0.15 0.15 (0.05) 0.10 Lead Maintenance Worker-HVAC 0.15 0.15 (0.05) 0.10 Maintenance Superintendent 0.10 0.10 0.10 Maintenance Worker I - Facilities - 0.25 0.25 - 0.25 Maintenance Worker 11 - Facilities 0.35 - 0.35 0.25 0.60 Senior Landscape Inspector 0.10 - 0.10 - 0.10 0.25 1.60 0.10 1.70 1.35 (0.15) 44.35 - 1.20 45.55 - Community Services Total 44.50 - INTERNAL SERVICE FUNDS - INSURANCE Director of HR/Risk Management 0.25 0.25 - 0.25 Management Assistant (Confidential) 0.30 (0.20) 0.10 0.35 0.45 Senior Management Analyst 0.40 0.05 0.45 - 0.45 (0.15) 0.80 0.35 1.15 0.95 - WORKERS' COMPENSATION Director of HR/Risk Management 0.25 0.25 - 0.25 Management Assistant (Confidential) 0.30 (0.30) - 0.45 0.45 Senior Management Analyst 0.40 0.05 0.45 - 0.45 (0.25) 0.70 0.45 1.15 0.95 352 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SCHEDULE OF CHANGES IN ALLOCATED POSITIONS Adopted Unfunded Current Unfunded Proposed Unfunded 2023-24 2023-24 Changes 2024-25 2024-25 Changes 2025-26 2025-26 INFORMATION TECHNOLOGY Assistant Director of IT/SS 1.00 1.00 1.00 Director of Information Technology 1.00 1.00 1.00 Information Technology Manager 1.00 1.00 - 1.00 Information Technology Specialist 1 1.00 1.00 1.00 2.00 Information Technology Specialist 11 1.00 1.00 (1.00) - Information Technology Supervisor 5.00 5.00 - 5.00 Information Technology Technician 1/11 1.00 (0.50) 0.50 0.50 1.00 Management Analyst 1.00 1.00 - 1.00 Senior Administrative Assistant 1.00 1.00 1.00 Senior Information Technology Specialist 2.00 2.00 2.00 Support Services Supervisor 0.10 0.10 - 0.10 15.10 (0.50) 14.60 0.50 15.10 SUPPORT SERVICES Information Technology Technician 1/11 - 0.50 0.50 (0.50) - Office Specialist - AM 0.60 - 0.60 0.60 Office Specialist - PM 0.60 0.60 0.60 Support Services Supervisor 0.90 0.90 0.90 2.10 0.50 2.60 (0.50) 2.10 FACILITIES Asst. Director of Public Works 0.10 (0.10) - - Custodian 11 0.40 0.40 0.40 Director of Public Works 0.10 0.10 - 0.10 Field Supervisor -Trades 0.25 0.25 0.55 0.80 Lead Maintenance Worker -Electrician 0.30 0.30 - 0.30 Lead Maintenance Worker -Facilities 0.80 0.80 (0.80) - Lead Maintenance Worker-HVAC 0.35 0.35 0.35 Maintenance Superintendent 0.50 0.50 0.50 Maintenance Worker I - Facilities - 0.30 0.30 - 0.30 Maintenance Worker 11 - Facilities 0.15 - 0.15 0.30 0.45 Management Analyst - - 0.20 0.20 Management Assistant 0.20 0.20 (0.20) - Principal Management Analyst 0.05 0.05 (0.05) - 3.20 0.20 3.40 - 3.40 Internal Service Funds Total 22.30 - (0.20) 22.10 - 0.80 22.90 - Annual Operating Budget 1 353 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF BUDGETED POSITIONS Department FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 City Council 5.00 5.00 5.00 5.00 5.00 City Manager: City Manager 4.55 4.45 3.65 4.50 5.50 Economic Development 5.10 5.30 6.35 5.50 5.50 City Clerk: 5.00 5.00 5.00 5.00 5.00 Human Resources: Emergency Management 1.20 1.30 0.00 0.00 0.00 Human Resources 4.65 5.00 5.10 5.50 4.70 Finance: 14.43 14.77 14.73 14.82 15.82 Community Development: Planning 10.15 12.90 10.80 11.18 11.28 Building & Safety 16.50 19.90 20.45 20.45 20.45 Public Works: Land Development 8.75 8.50 7.95 9.10 8.60 Public Works 18.40 19.31 20.05 20.50 20.20 CIP Administration 12.00 13.70 14.55 14.30 13.85 Parks Maintenance 6.22 9.73 10.80 9.40 9.45 Sheriff's Office* 0.15 0.15 0.15 0.00 0.00 Fire* Emergency Management 0.00 0.00 1.00 1.00 1.00 Fire 4.00 4.00 4.00 4.00 5.00 Community Services: Parks and Recreation 38.38 41.91 42.70 42.30 42.25 Service Level B 0.00 0.00 0.00 0.00 1.20 Service Level C 0.80 0.00 0.00 0.00 0.00 Service Level D 0.40 0.40 0.40 0.40 0.35 Service Level L 0.19 0.05 0.05 0.05 0.05 Library 1.12 1.50 1.35 1.60 1.70 Special Revenue Funds: Community Development Block Grant 0.20 0.20 0.20 0.20 0.20 Affordable Housing 1.10 0.95 1.50 1.12 1.02 Community Facility Districts: 0.17 0.08 0.12 0.18 0.18 Internal Service Funds: Insurance 0.65 0.85 0.95 0.80 1.15 Information Technology 12.60 13.10 15.10 14.60 15.10 Support Services 2.60 2.60 2.10 2.60 2.10 Facilities 2.79 3.95 3.20 3.40 3.40 Workers' Compensation 0.60 0.85 0.95 0.70 1.15 Total Budgeted Positions 177.70 195.45 198.20 198.20 201.20 Unfunded Authorized Positions 0.00 1.00 1.00 1.00 1.00 Total Authorized Positions 177.70 196.45 199.20 199.20 202.20 *Sheriff and Fire services are contracted through Riverside County. Temecula Sheriff's Office Staffing for Fiscal Year 2025-26 includes 116.7 Sworn Officers and 18 Community Service Officers. Fire Staffing for Fiscal Year 2025-26 is 79. 354 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget LOCATOR MAP The City of Temecula is a General Law City located in southwestern California, United States, with a population of 112,220. The City was incorporated on December 1, 1989. Temecula, known as the Heart of Southern California Wine Country, is conveniently located off the 1-15 freeway, approximately one hour north of San Diego. Temecula's central location attracts visitors from popular Southern California locales like Palm Springs, Los Angeles, Anaheim, Irvine, Carlsbad and San Diego. Annual Operating Budget 1 355 City of Temecula Fiscal Year 2025-26 Annual Operating Budget COMMUNITY PROFILE AND DEMOGRAPHICS Type of Government: General Law Form of Government: City Manager Located: 55 miles north of San Diego RECREATION/TOURIST DATA Recreation and Culture: Number of Number of Parks Park Acres 2025 42 337 2024 42 337 2023 42 337 2022 42 337 2021 41 330 EDUCATIONAL DATA Temecula Unified School District (TK-12): Number of Number of Number of Schools Teachers Students 2025 30 1,357 26,668 2024 30 1,424 26,577 2023 29 1,404 26,981 2022 29 1,391 26,733 2021 28 1,384 26,820 PUBLIC SAFETY DATA Fire Protection: (contract with Riverside County) Number of Number of Stations Staff Date of Incorporation: December 1, 1989 Altitude: 1000-1200 ft. Hotels/Motels: Number of Total Lodging Number Properties of Rooms 2025 21 2,933 2024 20 2,808 2023 20 2,813 2022 20 2,691 2021 19 2,587 (Includes Pechanga Resort & Casino) Libraries: Number of Number of Libraries Volumes 2025 2 1.1 million 2024 2 1.2 million 2023 2 1.3 million 2022 2 1.2 million 2021 2 1.6 million (Total volumes in County available to Temecula residents) Police Protection: (contract with Riverside County) Number Number of of Sworn Stations Officers 2025 5 79 2025 3 117 2024 5 78 2024 3 117 2023 5 72 2023 3 117* 2022 5 72 2022 3 119 2021 5 72 2021 3 115 (*Reduction due to change in Patrol Deputy shifts. Patrol coverage remains at same level as 2022, which is 210 hours per day) 356 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget COMMUNITY PROFILE AND DEMOGRAPHICS Population (Est.) 112,771 113,000 112,220 110,000 109,925 108,899 � 108, 700 107, 000 104, 000 101,0o0 98,000 95,000 _ 2021 2022 2023 2024 2025 Source -:California Department of Finance (2024) Income $165,000 9143,718 $145,129 $150,000 $132,650 $135,000 $120,0oo - $105,000 $1g59 $114.n71 $104798 $110,832 $112 399 $91%000 $75,000 2021 2022 2023 2024 2025 —s— Ave rag e Household YMedian Household Source: Claritas60(2024) City Maintained Streets (in Miles) 350 322 325 300 275 250 225 200 2021 322 322 322 2D22 2023 2024 325 2D25 Number of Registered Voters 75,000 71,491 70,000 66,700 66,7S1 67,297 65,000 60,000 55,000 50,1300 2021 2022 2D23 2024 2025 Source: Riverside Courrty Registrar of Voters (202411 Temecula Unemployment Rates 9.0 % — 7.0 % 6.0% of ■ 2024 5.0% ��.4 �° _.A.R°% 02025 4.495 4.1 4.0 % — 3.0% — 2.0 % Jan Feb Mar Apr Source:Cadornia Emp!oyment Development Department i2024) Annual Operating Budget 1 357 City of Temecula Fiscal Year 2025-26 Annual Operating Budget COMMUNITY PROFILE AND DEMOGRAPHICS City Authorized Positions 210 200 196.45 199.2 199.2 202.2 i 190 i80 177.7 170 160 2021 2022 2023 2024 2025 Fuii Time Positions Per 1,000 Citizens* 4.10 114,000 4.00 113,00.0 3.90 112,000 3.80 111,00o 3.70 110,000 3.60 3.50 109,060 3.40 10$,000 3.30 107,000 3.20 106,00D 2021 2022 2023 2024 2025 Ili Full Time Posimons Popul�r,ion Per 1,000 Citizens 'Includes wntracted Fire and Police personnel 1r r�l t Temecula's T Temecula Civic Center :... . Annexed Area > Current Temecula City Boundary -2014 ._ 37 Sq. Miles - Otinal To meccala City Boundary- 1989 __ 26Sq_MilGs Vag Ranch An vexation-2000._1Sq.Mile - - - Roripaugh Ranch Annexation - 2001...1 Sq. Mile RedhawkAnnexation-2005...2Sq. Miles-- ® SantaM1hargaritaAnnexation-2910._75q.Miles �,;;=;' :�- = N": ;- . - . A 358 1 Annual Operating Budget CONSOLIDATED CAPITAL OUTLAY REQUESTS EMERGENCY MANAGEMENT City of Temecula Fiscal Year 2025-26 Annual Operating Budget 001 1 115 Emergency Shelter Supplies $5,000 1 Mass Care and Shelter Supplies (continued build out of program - year 4 of 5). 001.115.999.5610 $5,000 PUBLIC WORKS Rollover from FY22-23; unable to procure in prior fiscal year. This is replacing Streets Maintenance unit 98-038 which is currently 24 years old and has become unreliable and 001 164 Construction Dump Truck $150,000 costly to maintain. 310.199.999.5610 Streets Maintenance Replacing unit 09-189 which is currently 16 years old and has become costly to 001 164 Ford F-150 Lightning XLT $70,000 maintain with motor issues, with a new electric vehicle. 310.199.999.5610 Traffic Maintenance Replacing unit 07-170 which is currently 18 years old and has become 001 1 164 Construction Dump Truck $150,000 1 unreliable and costly to maintain. 310.199.999.5610 $370,000 SHERIFF'S DEPARTMENT 001 170 Motor - New $48,000 To replace aged fleet. 001.170.999.5610 001 170 Motor - New $48,000 To replace aged fleet. 001.170.999.5610 001 170 Motor - New $48,000 This is a rollover from FY24-25; unable to procure in prior fiscal year. To replace aged fleet. Budget increased by $10,500 due to unknown price of newer model. 001.170.999.5610 001 1 170 TMotor -New 1 $48,000 This is a rollover from FY24-25; unable to procure in prior fiscal year. To replace 1 aged fleet. Budget increased by $10,500 due to unknown price of newer model. 001.170.999.5610 $192,000 PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 125 1 199 AV Production Equipment $25,000 AV Production Equipment 125.199.999.5610 $25,000 Annual Operating Budget 1 359 City of Temecula Fiscal Year 2025-26 Annual Operating Budget CONSOLIDATED CAPITAL OUTLAY REQUESTS INFORMATION TECHNOLOGY - REPLACEMENT FUND 325 199 Computer Lifecycle Replacement $125,000 Replacement of computers that have aged beyond their useful life. 325.199.999.5610 325 199 Switch Lifecycle Replacement $75,000 Replacement of network equipment that have aged beyond their useful life. 325.199.999.5610 325 199 CRC Amphitheater Audio Equipment Lifecycle Replacement $90,000 Lifecycle replacement of speakers and head end equipment at the CRC Amphitheater that have aged beyond their useful life. 325.199.999.5610 325 199 Phone System Replacement $75,000 Replacement of on -premises phone system with a cloud -based system. 325.199.999.5610 $365,000 SUPPORT SERVICES - REPLACEMENT FUND 335 1 199 Copier Lifecycle Replacement $30,000 1 Replacement of copiers that are broken or have aged beyond their useful life. 335.199.999.5610 $30,000 360 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GANN APPROPRIATIONS LIMIT Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was approved by California voters in November 1979, and placed limits on the amount of proceeds of taxes that state and local government agencies can receive and spend each year. For cities that incorporated after 1978-79 (such as the City of Temecula), the voters set the initial appropriations limit at the time of incorporation. Proposition 111 was approved by California voters in June 1990, which provided new adjustment formulas which make the appropriations limit more responsive to local growth issues. Each year the City Council must adopt by resolution the appropriations limit for the following year. Following is the calculation of the City's Gann Appropriations Limit for Fiscal Year 2025-26: Fiscal Year 2024-25 Appropriations Limits ....... City Population Growth .................................... Per Capita Personal Income Change ................. Fiscal Year 2025-26 Appropriations Limit ......... .. $362,489,557 ..............1.19% .............. 6.44% ...$390,425,308 Appropriations subject to the limit in the Fiscal Year 2025-26 Budget total $107,737,717 which is $282,687,591 less than the computed limit. Additional appropriations to the budget funded by non -tax sources such as service charges, restricted revenues from other agencies, grants or beginning fund balances would be unaffected by the appropriations limit. However, any supplemental appropriations funded through increased tax sources would be subject to the appropriations limit and could not exceed the $282,687,591 variance indicated. Further, any overall actual receipts from tax sources greater than $282,687,591 from budget estimates will result in proceeds from taxes in excess of the City's appropriations limit, requiring refunds of the excess within the next two fiscal years or voter approval of an increase in the City's appropriations limit. Voter approval for an increase in the City's appropriations limit is not anticipated in the future due to the margin between the limit and tax revenue. GANN Appropriations Limit 500, (r0030 400,aoo,000 — — — — — — — — Ito 1 Go. wo, DDO -- 2021-22 2022-23 2023-24 2024-25 2025-26 ■Approp riatiansSubjectto Limit Leg a; Lsmit Annual Operating Budget 1 361 City of Temecula Fiscal Year 2025-26 Annual Operating Budget ASSESSED VALUE OF TAXABLE PROPERTY TOTAL EXEMPTIONS NET HOME NET TOTAL SECURED AND (VETERAN, ASSESSED OWNERS ASSESSED FISCAL YEAR UNSECURED CHURCH, ETC.) VALUE EXEMPTIONS VALUE (Value in Thousands) 2014 12,581,717 (153,544) 12,428,173 (109,890) 12,318,283 2015 13,547,737 (182,877) 13,364,860 (108,001) 13,256,859 2016 14,268,280 (204,291) 14,063,989 (107,401) 13,956,588 2017 14,978,638 (211,399) 14,767,239 (107,239) 14,660,000 2018 15,679,713 (261,352) 15,418,361 (107,152) 15,311,209 2019 16,376,826 (281,515) 16,095,311 (105,164) 15,990,147 2020 17,062,378 (310,210) 16,752,168 (102,448) 16,649,720 2021 17,817,872 (331,846) 17,486,026 (100,051) 17,385,975 2022 18,632,809 (358,555) 18,274,254 (97,842) 18,176,412 2023 20,026,545 (386,974) 19,639,572 (95,663) 19,543,908 2024 21,352,737 (419,890) 20,932,847 (95,795) 20,837,052 2025 22,496,081 (478,362) 22,017,718 (95,556) 21,922,163 Source: HdL Coren & Cone 362 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF FEDERAL GRANT EXPENDITURES Actual Actual Actual Budgeted Budgeted AGENCY/GRANT NAME FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Department of Homeland Security: Homeland Security Grant - 2019 16,508 Homeland Security Grant - 2020 13,527 Homeland Security Grant - 2021 12,894 Emergency Management Performance Grant-2021 28,338 Emergency Management Performance Grant-2022 24,867 Disaster Grants- Public Assistance (Presidentially Declared Disasters) 125,321 Fire Management Grant 919 Department of Housing and Urban Development: Community Development Block Grant 694,037 1,306,751 1,450,820 11,843 325,000 Department of Justice: Edward Byrne Memorial Justice Assistance Grant Program Department of Transportation: Highway Bridge Program (HBP) Highway Safety Improvement Program (HSIP) Highway Planning and Construction (BR-NBIL) Local Road Safety Plan (LRSPL) Highway Planning and Construction (STPHPLUL) SAFETEA-LU STP and STPL INFRA Grant Department of Treasury: COVID-19 Coronavirus State and Local Fiscal Recovery funds American Rescue Plan Act (ARPA) Note: Amounts Unaudited 19,512 3,924,579 1,624,179 468,702 492,433 95,295 185,578 12,291 564,148 28,035 1,439,839 1,602,360 696,272 1,117,175 2,770,479 24,088,201 25,487,965 7,039,754 7,039,754 200,000 TOTALS $10,718,793 $11,610,871 $28,434,398 $31,818,314 $ 325,000 Annual Operating Budget 1 363 City of Temecula Fiscal Year 2025-26 Annual Operating Budget LEGAL DEBT MARGIN In accordance with Government Code Section 43605, the City shall not incur an indebtedness for public improvements which exceed 15 percent of the assessed value of all real and personal property of the City. Debt obligations from taxes levied on taxable property is subject to the legal debt limitation. The City's debt limit for Fiscal Year 2025-26 is $3,302,621,825 while the City's debt subject to the limitation is $0. As a result, the City has not exceeded its legal debt limit. Net Total Assessed Value Plus: Exempt Property TOTAL ASSESSED VALUE DEBT LIMIT - 15% of Total Assessed Value Debt Obligations Applicable to Limit: None Less: Assets in Debt Service Funds Available for Payment of Principal NET DEBT APPLICABLE TO LIMIT LEGAL DEBT MARGIN Note: Amounts Unaudited Source: HdL Coren & Cone Fiscal Year 2025-26 $21,921,923,231 $95,555,600 $22,017,478,831 $3,302,621,825 $0 $0 $0 $3,302,621,825 364 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget FISCAL YEAR 2025-26 DEBT OBLIGATIONS FISCAL YEAR 2025-26 ISSUE BOND MATURITY INTEREST TOTAL DEBT OUTSTANDING INTEREST TO FUND DATE DESCRIPTION RATING* DATE RATES PRINCIPAL INTEREST OBLIGATION PRINCIPAL MATURITY Tax Allocation 380 2017 Bonds, Series AA 12/15/2038 .0000% 51,795,000 1,717,125 3,512,125 33,685,000 12,062,625 2017A Tax Allocation 380 2017 Bonds, Series AA 12/15/2039 .0000% 41,185,000 911,269 2,096,269 23,310,000 7,147,022 2017E (Taxable) Successor Agency to the Redevelopment Agency (SARDA) Total $2,980,000 $2,628,394 $5,608,394 $56,995,000 $19,209,647 TOTAL $2,980,000 $2,628,394 $5,608,394 $56,995,000 $19,209,647 *The Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A and 2017E were rated by Standard & Poors and assigned an underlying rating of "BBB+" and an insured rating of "AA," per the Official Statement dated December 19, 2017. Debt Financing has been programmed for the following Capital Improvement Proiects: 1) Las Haciendas Affordable Housing Project ($9,629,143) in bond proceeds from the Tax Allocation Bond, Series 2017B. 2) Vine Creek Affordable Housing Project ($1,408,281) in bond proceeds from the Tax Allocation Bond, Series 2017B. The City's General Fund has no other debt obligations. In December 202Z the City Council adopted the Debt/Liability Pay Down Strategy, outlining a goal for the City to become debt free and fully funded in its Pension and Other Post -Employment Benefits (OPEB) programs. As of Fiscal Year 2023-24, the City has fully paid off its facility loans for the Civic Center ($12.6 million) and the Margarita Recreation Center ($5.0 million), saving over $3 million in operating expenses per year. Additionally, the City's OPEB unfunded liability has been paid off and $29.7 million has been paid towards the City's $62 million unfunded pension liability, saving nearly $3 million in annual pension costs. Annual Operating Budget 1 365 City of Temecula Fiscal Year 2025-26 Annual Operating Budget FISCAL YEAR SUMMARY OF PROPERTY TAX COLLECTIONS SECURED UNSECURED TOTAL TOTAL TAX LEVY TAX LEVY TAX LEVY COLLECTIONS PERCENTAGE OF LEVY COLLECTED (Value in Thousands) 2015 5,543,535 262,054 5,805,589 5,865,982 101.04% 2016 5,885,507 265,256 6,150,763 6,316,654 102.70% 2017 6,201,407 287,494 6,488,901 6,708,009 103.38% 2018 6,516,826 288,369 6,805,195 6,974,177 102.48% 2019 6,811,965 298,560 7,110,525 7,327,720 103.05% 2020 7,339,082 189,434 7,528,516 7,689,815 102.14% 2021 7,576,606 194,018 7,770,624 7,966,105 102.52% 2022 7,926,685 196,480 8,123,165 8,309,101 102.29% 2023 8,576,578 209,079 8,785,657 9,087,650 103.44% 2024 9,164,037 250,592 9,414,629 9,705,806 103.09% Since the fiscal year ended June 30, 1994, the City of Temecula has received its property tax revenues in accordance with the Teeter Plan. Under the Teeter Plan, the City is paid in full each year for the actual amount of property taxes levied, regardless of the amount of delinquencies. As delinquent property taxes are collected, they are kept by the County including any penalties and interest. After 1994, any differences between the total tax levy and total collections are due to tax roll adjustments made during the year, resulting in a percentage that may be higher than 100%. Source: Riverside County Auditor -Controller City of Temecula, Finance Department 366 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget PRINCIPAL SECURED PROPERTY OWNERS Secured Unsecured Total 2024-25 2024-25 2024-25 Percent TAXPAYER TYPE OF BUSINESS Assessed Assessed Assessed of Net Valuation Valuation Valuation Assessed (in 000s) (in 000s) (in 000s) Valuation Medical Appliances Abbott Vascular, Inc.* Manufacturing 100,464 96,271 196,735 0.89% Temecula Towne Center Regional Shopping Associates* Center 178,046 - 178,046 0.81% Temecula Valley Hospital Inc Health Care 138,783 138,783 0.63% Residential Solana Ridge* Apartments 106,628 106,628 0.48% Breit MF Campanula Way LLC* Residential 99,197 99,197 0.45% Residential 42200 Moraga Road LLC Apartments 85,480 85,480 0.39% EXETER 42500 WINCHESTER LLC Industrial 84,186 84,186 0.38% Cape May Temecula Residential Apartments LLC Apartments 82,653 82,653 0.38% Residential Foothills At Old Town LLC* Apartments 82,512 82,512 0.37% Inland Western Temecula Commercial Shopping Commons Center 70,873 - 70,873 0.32% TOTAL - TOP TEN 1,028,821 96,271 1,125,091 5.11% TOTAL - CITYWIDE 21.3 22,623 715,095 22.0 77,718 *Pending Appeals on Parcels NOTE: Assessed values of parcel owned by related entities have been aggregated. Source: HdL Coren & Cone Annual Operating Budget 1 367 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 14101k Iaft 1_A9us] 01[6]2 AD Isoel1_\0L!Z01THaff-1]9I0[ = 0]0191403974:AI 2023-24 Assessed Valuation Redevelopment Successor Agency Incremental Valuation Adjusted Assessed Valuation DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District Eastern Municipal Water District, I.D. No. U-8 Mt. San Jacinto Community College District Murrieta Valley Unified School District Temecula Valley Unified School District Eastern Municipal Water District Community Facilities District No. 2002-04, I.A. 3 Eastern Municipal Water District Community Facilities District No. 2002-08 Eastern Municipal Water District Community Facilities District No. 2005-38, I.A. B Eastern Municipal Water District Community Facilities District No. 2010-60 Eastern Municipal Water District Community Facilities District No. 2013-63 Temecula Public Financing Authority Community Facilities District No. 01-2 Temecula Public Financing Authority Community Facilities District No. 03-1 Temecula Public Financing Authority Community Facilities District No. 03-2 Temecula Public Financing Authority Community Facilities District No. 03-3 Temecula Public Financing Authority Community Facilities District No. 03-6 Temecula Public Financing Authority Community Facilities District No. 16-1 Temecula Public Financing Authority Community Facilities District No. 20-01 Temecula Valley Unified School District CFD No. 2002-1, I.A. No. 1 Temecula Valley Unified School District CFD No. 2002-2 Temecula Valley Unified School District CFD No. 2004-1, I.A. A and B Temecula Valley Unified School District CFD No. 2005-1 Temecula Valley Unified School District CFD No. 2017-1 Temecula Valley Unified School District CFD No. 2018-1 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT DIRECT AND OVERLAPPING GENERAL FUND DEBT: Riverside County General Fund Obligations Riverside County Pension Obligation Bonds Murrieta Valley Unified School District Certificates of Participation City of Temecula General Fund Obligations TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $20,924,223,779 $ 2,822,181,827 $18,102,041,952 Applicable (1) Debt 6/30/24 0.53% 96,331 84.66% 1,849,821 16.09% 38,971,589 0.01% 13,764 67.07% 106,852,296 100.00% 380,000 100.00% 1,645,000 100.00% 393,000 100.00% 2,220,000 100.00% 3,144,903 100.00% 9,440,000 100.00% 7,325,000 100.00% 7,350,000 100.00% 13,700,000 100.00% 2,615,000 100.00% 47,055,180 100.00% 12,695,000 27.65% 1,074,358 100.00% 12,430,000 100.00% 14,305,000 28.72% 1,963,012 100.00% 6,900,000 42.16% 849,584 $293,268,838 Applicable (1) Debt 6/30/24 5.27% 34,396,344 5.27% 35,377,201 0.01% 1,832 100.00% 0 $69,775,378 368 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.00% $62,835,000 TOTAL DIRECT DEBT TOTAL OVERLAPPING DEBT COMBINED TOTAL DEBT $0 $425,879,215 $425,879,215 (2) (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City, divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations. Ratios to 2023-24 Assessed Valuation: Total Overlapping Tax and Assessment Debt Total Direct Debt ($0) Combined Total Debt 1.40% 0.00% 2.04% Ratios to Redevelopment Successor Agency Incremental Valuation ($2,457,088,548): Total Overlapping Tax Increment Debt 2.56% *Amounts will be updated for the Adopted Budget Annual Operating Budget 1 369 City of Temecula Fiscal Year 2025-26 Annual Operating Budget LARGEST EMPLOYERS BY NUMBER OF EMPLOYEES NUMBER OF EMPLOYEES As of As of As of As of As of June June June June June NAME OF EMPLOYER 2020 2021 2022 2023 2024 Pechanga Resort & Casino 5,257 5,257 5,257 5,257 5,257 Temecula Valley Unified School District 2,600 3,000 3,000 3,000 3,238 Abbott Laboratories (f/k/a Guidant Corporation) 1,500 1,500 1,500 1,500 1,700 Temecula Valley Hospital 900 1,009 1,009 1,009 1,270 Milgard Manufacturing 450 468 468 515 530 Walmart 570 500 500 500 500 Costco Wholesale Corporation 420 420 500 500 500 Southwest Traders 455 455 484 484 484 Millipore Sigma 350 370 370 370 370 FFF Enterprises Inc. 300 366 366 366 366 The Scotts Company 290 220 220 220 335 South Coast Winery Resort & Spa 500 260 260 260 330 DCH Auto Group Temecula 326 290 290 314 314 Macy's 295 295 295 295 295 Temecula Valley Winery Management 150 274 274 274 274 Home Depot 225 268 268 268 268 Temecula Creek Inn 230 15 15 220 230 Paradise Chevrolet Cadillac 270 198 198 234 228 PHS Medline 900 250 250 250 220 Albertson's 173 205 205 200 200 Rancho Family Medical Group 167 200 200 200 200 Opto 22, Inc. 150 135 135 135 200 City of Temecula 178 178 195 198 198 Toyota of Temecula Valley 240 204 204 204 191 Motorola ** 190 190 190 190 WinCo 154 165 165 179 176 Garmon Corp 80 175 175 175 175 Target 168 200 200 200 170 Rancho California Water District 150 164 164 164 164 Stater Bros. Markets 110 115 115 115 150 BYs Restaurant & Brewery 150 79 97 95 145 Securitas Security Services USA, Inc. 175 140 140 140 140 JC Penney Company 138 138 138 138 138 Gosch Ford Lincoln Mercury 120 140 140 120 121 Lowe's 169 120 120 115 115 Pacific Hydraulic Services/MWA 150 150 79 80 107 Red Robin ** ** 50 50 102 Bomatic, Inc. 100 100 100 100 100 Kaiser Permanente 110 100 100 100 100 ** Data Not Available Source: Temecula Valley Chamber of Commerce *Amounts will be updated for the Adopted Budget 370 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget NAME OF CITY COMPARATIVE CITY INFORMATION ACTUAL ACTUAL NUMBER GENERAL GENERAL FISCAL OF FUND FUND YEAR EMPLOYEES POPULATION REVENUES EXPENDITURES EXPENDITURES PER CAPITA TEMECULA 2023-24 198* 108,700 $138,480,475 $143,109,707 $1,317 2022-23 195* 108,899 $144,924,798 $139,646,241 $1,282 2021-22 178* 109,925 $133,795,830 $105,645,373 $961 2020-21 173* 112,771 $119,353,336 $91,974,475 $816 2019-20 177* 111,970 $100,394,398 $90,566,062 $809 2018-19 172* 113,826 $104,304,439 $99,332,578 $873 ESCONDIDO 2023-24 995 151,038 $139,230,119 $136,320,504 $903 2022-23 944 150,002 $134,974,385 $125,215,962 $835 2021-22 958 149,799 $124,247,952 $116,872,468 $780 2020-21 928 150,679 $123,559,876 $112,189,804 $745 2019-20 927 151,688 $106,434,879 $107,260,822 $707 2018-19 960 153,008 $105,610,444 $105,815,142 $692 MORENO VALLEY 2024-25 531 207,146 $169,532,496 $164,910,799 $796 2022-23 463 208,289 $161,326,241 $161,721,140 $776 2021-22 447 209,407 $136,693,576 $127,385,754 $608 2020-21 426 209,426 $122,004,499 $106,113,032 $507 2019-20 429 208,838 $114,002,121 $109,264,995 $523 2018-19 450 208,297 $112,290,853 $102,279,118 $491 HEMET 2023-24 302 89,663 $77,717,310 $69,692,828 $777 2022-23 305 89,918 $69,772,536 $60,688,229 $675 2021-22 277 89,646 $69,626,631 $55,161,595 $615 2020-21 273 84,525 $62,962,518 $50,270,666 $595 2019-20 267 85,175 $54,365,179 $49,708,090 $584 2018-19 279 84,754 $54,065,184 $48,514,586 $572 LAKE ELSINORE 2023-24 163 71,452 $68,157,933 $66,585,063 $932 2022-23 164 71,973 $58,935,767 $58,044,761 $806 2021-22 141 71,615 $56,583,350 $52,952,565 $739 2020-21 118 64,762 $47,882,184 $45,202,392 $698 2019-20 105 63,453 $42,225,782 $42,311,820 $667 2018-19 101 62,949 $41,336,324 $41,054,855 $652 MURRIETA 2023-24 466 109,177 $106,549,851 $90,448,901 $828 2022-23 432 109,177 $100,001,063 $78,224,768 $716 2021-22 431 109,998 $88,827,370 $67,613,815 $615 2020-21 407 111,183 $81,447,222 $71,149,130 $640 2019-20 355 115,172 $71,716,032 $53,467,907 $464 2018-19 347 115,561 $58,115,146 $51,949,869 $450 * Denotes total authorized positions within the City of Temecula Annual Operating Budget 1 371 Transfers In: Operating Funds Fund 001: General Fund Fund 001: General Fund Fund 001: General Fund Fund 001: General Fund Fund 001: General Fund Fund 001: General Fund Special Revenue Funds City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF INTERFUND TRANSFERS 13, 284,149 170,390 93,780 3,143,670 285,067 2,000,000 Subtotal 18,977,056 Transfers From: Measure S Fund - Public Safety Personnel Costs Measure S Fund - Fire Vehicles and Ladder Truck Measure S Fund - Enhanced Custodial Services Gas Tax Fund Supplemental Law Enforcement Services Fund Pension Trust Fund Fund 103: Street Maintenance 1,000,000 Measure S Fund - Street Maintenance Reserve Fund Contribution Subtotal 1,000,000 Temecula Community Services District (TCSD) Fund 190: Citywide Operations 16,480,467 Measure S Fund - TCSD Operations Subsidy Fund 197: Library 1,384,016 Measure S Fund - Library Subsidy Subtotal 17,864.483 Capital Projects Funds Fund 210: Capital Improvement Fund 500,000 Fund 210: Capital Improvement Fund 8,809,109 Fund 210: Capital Improvement Fund 2,827,154 Fund 210: Capital Improvement Fund 4,226,610 Fund 210: Capital Improvement Fund 325,000 Fund 210: Capital Improvement Fund 1,927,477 Fund 210: Capital Improvement Fund 50,000 Fund 210: Capital Improvement Fund 2,872,160 Fund 210: Capital Improvement Fund 1,000,000 Subtotal 22,537,510 Internal Service Funds Fund 320: Information Technology 300,000 Fund 350: Facility Replacement 1,250,000 Subtotal 1,550,000 Total 61,929,049 General Fund - General Plan Update Measure S Fund Road Maintenance Rehab Account Fund Development Impact Fees Fund CDBG Fund Street Maintenance Fund AB 2766 Motor Vehicle Subvention Fund Measure A Fund Facilities Replacement Fund Measure S Fund - Citywide Security Camera Project Maintenance Measure S Fund - Facility Replacement Reserve Fund Contribution 372 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF AFFORDABLE HOUSING INVESTMENT The City of Temecula, in conjunction with the former Temecula Redevelopment Agency (RDA), has invested $41 million in a variety of affordable housing options for Temecula residents, with 704 units completed since the City incorporated in 1989, and 95 of those units funded and completed by the County of Riverside. With an additional investment of $16 million, an additional 143 affordable units have been funded and will be constructed in the future. The developers of the future projects are working to secure the remaining funding via tax credits necessary to begin construction. Cameron Building • 24 rental units for moderate -income households 80% of area median income (AMI) • RDA Investment $3 million • Mixed -use building with commercial retail space on the bottom floor and 24 affordable housing units on floors 2-4 Palomar Heritage • 22 rental units for low and moderate -income households 60% and 110% AMI • RDA investment $3.3 million • Mixed used building with commercial retail space on the bottom floor and 22 affordable housing units on floors 2-3 Both the Cameron Building and the Palomar Heritage Building were the first of their kind in Old Town. The projects provided a great opportunity for the City to not only work towards meeting the community's affordable housing needs but also to spur economic development within the Old Town District. The use of affordable housing funds to produce affordable housing and commercial space in a mixed -use building in Old Town allowed the City to leverage the City's affordable housing funds for multiple purposes within the same development. This strategy of investment for the two future affordable housing / mixed use buildings served as a model for two other City -funded developments in Old Town. Portola Terrace • 44 rental units for low and very low-income households 50% and 60% AMI • RDA investment $5.5 million • Completed in 2013 Madera Vista • 110 affordable units in larger family -sized apartments • RDA investment $8.4 million • 20 units set aside for seniors The Madera Vista development was originally a private condo development that fell into foreclosure during the Great Recession. The project partially built and in disrepair. The City, along with Bridge Housing utilized affordable housing funds to purchase the property and completed construction. Annual Operating Budget 1 373 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF AFFORDABLE HOUSING INVESTMENT In addition to providing funding to construct affordable housing units, the former Redevelopment Agency invested $524,356 to provide a First -Time Home Buyer Program available to moderate -income households (120% AMI) and assisted 20 First -Time Home Buyers to purchase homes in Temecula. The City of Temecula and the former RDA have partnered with Habitat for Humanity since 2003 to construct five homes for low-income households to purchase. Total RDA investment of $582,000. An additional $700,000 investment with Habitat for Humanity is programmed for a future project to build six for -sale affordable/workforce housing units available to moderate and low-income homebuyers. The City's primary funding source for affordable housing was the Temecula Redevelopment Agency. In 2012, the State of California disbanded all redevelopment agencies within the State. The City of Temecula serves as the Successor Agency to the Redevelopment Agency (SARDA) and is responsible for the eventual wind down of the remaining RDA obligations, including the investment of the remaining $12.8 million in bond proceeds of the former RDA. Two affordable housing projects have been identified and the City Council has approved funding agreements with developers to provide an additional 137 affordable units. Vine Creek — Under Construction • 60 rental units for low and very low-income households -�, • 14 units set aside for special needs residents • RDA investment of $6.7 million Las Haciendas — Completed • 77 rental units for low and very low-income households • RDA investment $10.2 million • Project is the first residential development in the Uptown Temecula Specific Plan area In Fiscal Year 2021-22, the City set -aside $1 million in Community Reinvestment Program (CRP) Funds for a future affordable housing development in the Uptown Specific Plan area. 374 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF CITY GRANT RECIPIENTS RECIPIENT Community Services Funding (CSF) Grant Community Development Block Grant (CDBG) Economic Development Sponsorship Community Services Funding (CSF) Council Member Grant Community Reinvestment Program (CRP) Rent Waiver Program FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 3 Sixty -Five Framers $4,500 $4,500 Acacia Sports $10,000 AIM for Good $10,000 AJT Wealth Consultants $10,000 Alexandria Monette Photography $10,000 American Patriot Music Project (formerly Phoenix Patriot Foundation) $5,000 Animal Friends of the Valley $40,000 $5,000 AR Workshop Temecula $10,000 Assistance League of Temecula Valley $50,000 $5,000 $7,226 $7,682 Avexpress $10,000 Baily's $10,000 Batch Mead, LLC $10,000 Bike Temecula Valley Co. $10,000 $3,500 $2,500 Bilingual Dictionaries, Inc. $10,000 Birth Choice of Temecula $25,000 $1,000 Boys & Girls Club of Southwest County $50,000 $7,226 $7,682 $1,000 Brand Assassins, Inc. $10,000 Cadenza String Orchestra $5,000 Canine Support Teams, Inc. $25,000 Careomatic, Inc $10,000 Cavco Enterprises, Inc $10,000 City of Temecula $441,515 $412,295 City of Temecula: Community Services Department $12,422 $7,682 Community Mission of Hope / Food Program $1,000 Community Mission of Hope / Rancho Community Church $7,226 Da Coconut Cafe $10,000 Deploi $2,700 Destination Temecula $10,000 Annual Operating Budget 1 375 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF CITY GRANT RECIPIENTS RECIPIENT Community Services Funding (CSF) Grant Community Development Block Grant (CDBG) Economic Development Sponsorship Community Services Funding (CSF) Council Member Grant Community Reinvestment Program (CRP) Rent Waiver Program FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 DM Shapewear $10,000 E21-ogicX $2,700 $2,700 Economic Development Coalition $30,000 $30,000 Elite Tax Partner, Inc. $10,000 Empire Auto, LLC $10,000 Epic Dog Academy $10,000 Equity Automotive, LLC $10,000 Exim 20/20 Group, LLC $3,120 $3,120 Extraordinary Artisan Table, EAT Marketplace $10,000 Fabwest Manufacturing $10,000 Fair Housing Council of Riverside County $19,875 $20,000 Favors for Neighbors $2,500 Fine Arts Network Theater Co. $10,000 First Tee Inland Empire Junior Golf Program $50,000 Ford and Elm $10,000 Fully Promoted of Temecula Valley $10,000 GolfIN Team, LLC $10,000 Good Samaritan Community Food Pantry $25,000 Grazing Theory Wine + Cheese Shop $10,000 Green Acres Interactive Therapy, Inc. $30,000 $2,500 $2,500 Habitat for Humanity / Habitat for Humanity, Inland Valley $45,000 $5,000 $49,724 $7,682 Hope Collaborative $1,500 Hospice of the Valleys $50,000 $7,226 $7,682 latrix Air, Inc. $3,780 $3,780 Inland Empire Film Services - Film Permits $6,000 $6,000 Inland Empire Small Business Development Center $7,500 $7,500 Inland Valley Symphony (Temecula Valley) $5,000 $2,500 Interactive iXperience, Inc. $4,800 International Christians Adoptions (ICA) $15,000 $5,000 Jack Black Casino Dealer School $10,000 376 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF CITY GRANT RECIPIENTS RECIPIENT Community Services Funding (CSF) Grant Community Development Block Grant (CDBG) Economic Development Sponsorship Community Services Funding (CSF) Council Member Grant Community Reinvestment Program (CRP) Rent Waiver Program FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 Jacob's House $25,000 $5,000 JDS Creative Academy $30,000 $5,000 JDS Law, Inc. $10,000 JDS Video & Media Productions $10,000 Julie Ngo, State Farm Insurance Agency $10,000 Koll Custom Homes, Inc. $10,000 Kompoocha Brewing, LLC $10,000 Live Care Foundation, Inc. $25,000 Live Well Family Counseling Services, Inc. $10,000 MD Diet of Temecula $10,000 Michelle's Place / Cancer Resource Center $50,000 $5,000 Michelle's Place / US Flags Program $1,000 Milvet $10,000 Miss Sue's Dance Company $10,000 Mothers Against Drunk Driving (MADD) $3,500 Movement Chiropractic $10,000 National Charity League (NCL) Temecula Chapter $5,000 Navy League of the U.S., Inland Empire Council $10,000 Nestle Toll House Cafe $10,000 New Palace Realty & Investments, Inc. $10,000 NZN Labs, Inc. $7,800 $11,400 Oak Grove Institute Foundation, Inc. $30,000 $5,000 Old Town Gunfighters Western Days $4,000* Phi Alpha Contract Solutions $3,000 $3,000 Project Touch $35,000 $5,000 $1,000 $2,000 Rancho Milagro Recovery $10,000 Riverside Area Rape Crisis Center $7,226 $7,682 Rock Your Red $5,000 $5,000 Rocky Mountain Chocolate Factory $10,000 Rosenstein & Associates $10,000 Annual Operating Budget 1 377 City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF CITY GRANT RECIPIENTS RECIPIENT Community Services Funding (CSF) Grant Community Development Block Grant (CDBG) Economic Development Sponsorship Community Services Funding (CSF) Council Member Grant Community Reinvestment Program (CRP) Rent Waiver Program FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 Rotary Club of Temecula / Rotary Club of Temecula Foundation $30,000 $5,000 S Thai Food Restaurant $10,000 SAFE Family Justice Centers / SAFE Alternatives for Everyone $5,000 $7,226 $7,682 Sand to Sea Properties, Inc. $10,000 Santa Rosa Plateau Nature Education Foundation $13,000 Savingsmore Digital Marketing, LLC $1,200 Sisu VR $1,200 Southwest Women's Chorus $5,000 Special Olympics Southern CA /Inland Empire (Temecula Valley) $5,000 Speech & Language Development Center, Inc. $5,000 Spero Vineyards $37,000 Steppin' Stone Tax & Accounting Services $10,000 Student of the Month Program (w/ Chamber of Commerce) $1,500 $1,000 TEDxTEMECULA- Inland Valley Business & Community Foundation $5,000 $2,500 Temecula Family Dental $10,000 Temecula Souvenirs $10,000 Temecula Sunrise Rotary Foundation $15,000 Temecula Theater Foundation $50,000 Temecula Valley Alano Club $5,000 Temecula Valley Balloon & Wine Festival $27,000 $27,000 Temecula Valley Chamber of Commerce $200,000 $200,000 Temecula Valley Communications (TVC), Inc $10,000 Temecula Valley Conservatory of the Arts $17,000 Temecula Valley Playhouse $30,000 Temecula Valley Posse $5,000 Temecula Valley Rose Society $10,000 378 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget SUMMARY OF CITY GRANT RECIPIENTS Community Services Community Community Services Community Economic Funding (CSF) Reinvestment RECIPIENT Funding (CSF) Grant Development Block Development Council Member Program (CRP) Rent Grant (CDBG) Sponsorship Grant Waiver Program FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 Temecula Valley Woman's Club (GFWC) $25,000 Terra Network Solutions $3,900 $3,900 The Empowerment Center (TEC) $25,000 $7,682 The Local Gist, LLC $3,000 $3,000 The Salvation Army $33,500 The Shella Foundation $5,000 Thessalonika Family Services $50,000 $5,000 Thomas Edward Salon $10,000 TIP of SW Riverside County $1,000 TVHS Golden Bear Foundation $5,000 Valley of the Mist Quilter's Guild $1,700 $1,800 Vet Corps Contracting, Inc $10,000 Veterans Supplemental Support Network (VSSN) $10,000 Visit Temecula Valley $40,000 $40,000 Voices for Children / Court Appointed Special Advocate (CASA) Program $2,500 $7,226 $7,682 Wellness Diagnostics & Medispa $10,000 Western Eagle Foundation $50,000 $5,000 Will Joyce Insurance Agency $10,000 Women Organizing Women, Inc. $5,000 $5,000 Wounded American Veterans Experience Scuba (WAVES) 1 $5,000 TOTAL 1 $1,105,500 1 $100,000 1 $574,118 $501,435 1 $314,700 $312,300 1 $8,000 $16,000 1 $524,500 $42,600 *Amounts will be updated for the Adopted Budget Annual Operating Budget 1 379 City of Temecula Fiscal Year 2025-26 Annual Operating Budget COMMUNITY REINVESTMENT PROGRAM FUNDING MATRIX Tota I Program Amount Business Support Wayfinding Signage - Old Town $500,000 Marketing Campaign $500,000 Rent Waiver forTVE2 Businesses $80,000 General Business Grants Internships $180,000 Externships $300,000 On-the-job Training $520,000 $1,000,000 CIP - Old Town Parklets $450,000 CIP - Vacant Parcel Beautification $360,000 CIP - Sidewalks -Old Town Improvements $115,000 TCSD Enhanced Xmas Lighting $75,000 $1,000,000 Total Business Support $3,080,000 Non -Profit Support Community Services Funding Grants $1,000,000 Total Non -Profit Support $1,000,000 Homeless Services Outreach, Prevention, Diversion Programs $500,000 Infrastructure (fencing) $500,000 Total Homeless Services $1,000,000 Housing Services CIP - Vine Creek Affordable Housing Project $4,000,000 CIP - Uptown Temecula Future Affordable Housing Project $1,000,000 Residential Rehabilitation Grant Program $500,000 Total Housing Services $5,500,000 Behavioral Health Services Support Veterans/First Responders/At-Risk $1,000,000 Firefighters' Benevolent Fund $250,000 Riverside County Sheriff's Charities $250,000 Total Behavioral Health $1,500,000 Higher Education/Workforce Development CSUSM/MSJC Certificate Programs $1,000,000 Total Higher Ed/Workforce Development $1,000,000 Unallocated Funding $1,000,000 Amount by Fiscal Year FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 Actuals Actuals Actuals Budget Budget Account Number $59,064 $12,500 $428,436 110.199.102.5267 $480,000 $20,000 110.199.102.5267 $20,925 $40,300 $18,775 $85,354 $214,646 110.199.102.5122 $52,233 $127,767 110.199.102.5123 $500,000 $20,000 110.199.102.5267 $0 $0 $637,587 $362,413 $0 $68,866 $381,134 110.199.102.7210 $ 3 60, 000 110.199.102.7210 $115, 000 110.199.102.7210 $70,000 $5,000 110.199.102.5267 $0 $0 $138,866 $861,134 $0 $0 $559,989 $829,253 $1,690,758 $0 $338,750 $626,525 $34,725 110.199.103.5267 $0 $338,750 $626,525 $34,725 $0 $500,000 $0 190.201.999.5248 $9,786 $490,214 110.199.104.7210 $0 $500,000 $9,786 $490,214 $0 $4,000,000 1 110.199.105.7210 $1,000,000 110.199.105.7210 $250,000 $250,000 110.199.105.5267 $0 $0 $250,000 $5,250,000 $0 $1,000,000 110.199.106.5267 $250,000 110.199.106.5267 $250,000 110.199.106.5267 $0 $1,500,000 $0 $0 $0 $1,000,000 110.199.107.5 267 $0 $0 $0 $1,000,000 $0 $1,000,000 380 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget ADDITIONAL RESOURCES Throughout the electronic version of the Annual Operating Budget, several links to documents are provided to allow the reader to access supplemental information about a specific topic, study, master plan or strategic plan. Below is a list of additional resources to provide a broader range of information about the City of Temecula operations and long-term strategic plans. Strategic Plans ❖ Temecula 2040 Quality of Life Master Plan - TemeculaCA.gov/689/Temecula-2040 ❖ Temecula General Plan - TemeculaCA.gov/345/General-Plan ❖ Specific Plans - TemeculaCA.gov/351/Specific-Plans ❖ Growth Management Plan - TemeculaCA.gov/GrowthManagementHandout Master Plan Documents ❖ Multi -Use Trails and Bikeways Master Plan - TemeculaCA.gov/DocumentCenter/View/1971 ❖ Community Services Master Plan - TemeculaCA.gov/TCSMasterPlan ❖ Youth Master Plan - TemeculaCA.gov/809/Youth-Master-Plan Miscellaneous Resources ❖ Fiscal Years 2026-30 Capital Improvement Program - TemeculaCA.gov/306/Budget-Management ❖ #BudgetTalk Series on Instagram - TemeculaCA.gov/306/Budget-Management ❖ 2024 Temecula Magazine - TemeculaCA.gov/ 16674/2024-Temecula-Magazine ❖ Temecula Municipal Code - TemeculaCA.gov/MunicipalCode ❖ Labor Agreements - TemeculaCA.gov/253/Human-Resources ❖ Around & About Temecula Video Series - TemeculaCA.gov/1222/Around-About-Temecula Annual Operating Budget 1 381 City of Temecula Fiscal Year 2025-26 Annual Operating Budget 382 1 Annual Operating Budget GLOSSARY OF ACRONYMS ACM — Assistant City Manager ADA— Americans with Disabilities Act AED —Automated External Defibrillator ALPR —Automated License Plate Reader AOB —Annual Operating Budget ARPA —American Rescue Plan Act ARRA — American Recovery and Reinvestment Act of 2009 CAFR —Comprehensive Annual Financial Report CAP —Community Action Patrol CDBG — Community Development Block Grant CFD — Community Facilities District CEQA —California Environmental Quality Act CERT —Community Emergency Response Team CIP — Capital Improvement Program COP — Certificate of Participation CPI — Consumer Price Index CPR —Cardiopulmonary Resuscitation CRC —Community Recreation Center CRP — Community Reinvestment Program CSMFO — California Society of Municipal Finance Officers CSO — Community Services Officer DFCI — Diesel Fuel Component Index DIF — Development Impact Fee DOJI — Department of Justice DOT — Department of Transportation EECBG — Energy Efficiency Conservation Block Grant EMS — Emergency Medical Services EMT— Executive Management Team EOC— Emergency Operations Center EOP — Emergency Operation Plan City of Temecula Fiscal Year 2025-26 Annual Operating Budget Annual Operating Budget 1 383 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF ACRONYMS FEMA — Federal Emergency Management Agency FOC — Field Operations Center FTE — Full -Time Equivalents GAAP — Generally Accepted Accounting Principles GASB — Governmental Accounting Standards Board GFOA —Government Finance Officers Association GIS —Geographic Information System HELPS — Healthy Living Programs for Seniors HRIS — Human Resources Information System HSIP — Highway Safety Improvement Plan HUD — United States Department of Housing and Urban Development IT— Information Technology ITS — Intelligent Transportation System JIRMP— Jurisdictional Runoff Management Plan LHMP — Local Hazard Mitigation Plan LRPMP — Long Range Property Management Plan MCP — Management Compensation Plan MOU — Memorandum of Understanding MS4 — Municipal Separate Storm Sewer System MSHCP — Multi -Species Habitat Conservation Plan MVLF — Motor Vehicle License Fee NPDES — National Pollutant Discharge Elimination System PEG — Public, Education & Government Fees Fund PERS - California Public Employees Retirement System POD — Point of Destination POST— Peace Officers Standards and Training QLMP — Quality of Life Master Plan RCTC — Riverside County Transportation Commission RDA — Redevelopment Agency REACH — Real Exceptional Adults Creating Hope 384 1 Annual Operating Budget GLOSSARY OF ACRONYMS ROPS — Recognized Obligation Payments Schedule RPTTF — Redevelopment Property Tax Trust Fund RTA— Riverside Transit Agency SARDA — Successor Agency to the Redevelopment Agency SEMS — California's Standardized Emergency Management System SLESF— Supplemental Law Enforcement Services Fund SOR — Service Order Requests SQL —Structured Query Language TCC —Temecula Citizens' Corps TCSD— Temecula Community Services District TEEM —Temecula Energy Efficiency Asset Management Fund TOT —Transient Occupancy Tax TUMF—Transportation Uniform Mitigation Fee TVE2/TVEE—Temecula Valley Entrepreneurs' Exchange TVUSD—Temecula Valley Unified School District WQIP — Water Quality Improvement Plan WQMP — Water Quality Management Plan WRCOG — Western Riverside Council of Governments YEPP —Youth Emergency Preparedness Program City of Temecula Fiscal Year 2025-26 Annual Operating Budget Annual Operating Budget 1 385 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF TERMS ABATEMENT - Abatement usually applies to tax levies, special assessments, and service charges. ACCOUNTING SYSTEM - The methods and records established to identify, assemble, analyze, classify, record, and report a government's transactions and to maintain accountability for the related assets and liabilities. ACCRUAL BASIS - The recording of the financial effects on a government of transactions and other events and circumstances that have cash consequences for the government in the periods in which those transactions, events, and circumstances occur, rather than only in the periods in which cash is received or paid by the government. ACTUAL - Represents the actual costs from the results of operations. ADOPTED - Represents the budget as approved by the City Council. ADOPTION - Formal action by the City Council that sets the spending limits for the fiscal year. AGENCY FUND -Afund normally used to account for assets held by a government as an agent for individuals, private organizations or other governments and/or other funds. APPROPRIATION - A legal authorization granted by the City Council to make expenditures and incur obligations for specific purposes. AMERICANS WITH DISABILITIES ACT OF 1990 (ADA) - A federal law providing for a wide range of protection to individuals which directly benefit District members. ASSESSMENT DISTRICT - A separate local government agency formed to provide specific local public improvements that directly benefit District members. AUDIT - A systematic collection of the sufficient, competent evidential matter needed to attest to fairness of management's assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. BALANCE SHEET - The financial statement disclosing the assets, liabilities, and equity of an entity at a specified date. BALANCED BUDGET - A budget that reflects operating revenues that fully cover operating expenditures. BUDGET - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. BUDGETARY CONTROL - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and revenues. CAPITAL EXPENDITURES - Expenditures resulting in the acquisition of or addition to the government's general fixed assets having a unit cost of $5,000 or more and a useful life of greater than one year. Infrastructure assets of $100,000 or more are also recorded capital expenditures. 386 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF TERMS CAPITAL IMPROVEMENT - Construction or major repair of City buildings, infrastructure, and facilities such as streets, roads, highways, bridges, curbs, gutters, sidewalks, storm drains, traffic signals, streetlights, gas and water distribution facilities, and parks. CAPITAL IMPROVEMENT PROGRAM (CIP) - A comprehensive plan which projects the capital needs of the community. Generally, it is a cyclical process that projects the needs for a set number of years. Capital improvements plans are essential to sound infrastructure and financial planning. The annual capital budget is derived from the long-term CIP. CAPITAL OUTLAY - Expenditures which qualify as capital costs according to accounting standards. This includes furniture, fixtures, machinery, equipment, and other relatively minor fixed assets. CAPITAL PROJECT - A specific undertaking involving the procurement, construction or installation of facilities and related equipment which improves, preserves, enhances, or modernizes the City's provision of municipal services, has a long-term useful life, and for which costs exceed$30,000. CAPTITAL PROJECTS FUNDS - A fund established to account for the acquisition and/or construction of major capital assets. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) - Funds allocated to local government from the federal government, based on a formula, but required to be applied for and used within a broad functional area such as community development. CONSTRUCTION ENGINEERING - Engineering work during the construction process that ensures projects are constructed in accordance with design parameters and specifications. The primary construction engineering functions are construction inspections, laboratory services, field surveys and design plan updates or interpretations. CONTINGENCY - A budgetary reserve set aside for emergency or unanticipated expenditures. CONTRACTUAL SERVICES - Contracts for professional services. CORE VALUE - 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 seven (7) Core Values upon which to focus time and resources (as identified in the QLMP). These areas include: 1. A Safe & Prepared Community 2. Transportation Mobility & Connectivity 3. Healthy & Livable City 4. Economic Prosperity S. Sustainable & Resilient City 6. Accountable & Responsive City Government 7. Equity COVID-19 - The viral outbreak, caused by a coronavirus that causes upper -respiratory illness, became a pandemic in the first quarter of 2020. The economic impact it will have on local government is difficult to predict due to the sudden and unprecedented nature of the pandemic. The full effect may not be known for some time but local governments are likely to see significant reductions in tax revenues. Annual Operating Budget 1 387 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF TERMS CURRENT BUDGET - Represents the original adopted budget plus any approved changes and anticipated year-end adjustments. DEBT SERVICE FUND - Funds established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Sometimes referred to as a Sinking Fund. DEPARTMENT - An organizational unit comprised of programs and program managers. A single director manages each department. DESIGNATED FUND BALANCE - Management's intended use of available expendable financial resources in governmental funds reflecting actual plans approved by the City Council. ENCUMBRANCE - Obligations in the form of purchase orders, contracts, or other commitments. They cease to be encumbrances when paid, cancelled, or when the actual liability is set up. EXPENDITURES - Decreases in net financial resources that include current operating expenses that require the current or future use of net current assets, debt services, and capital outlays. FEES - Charges for specific services. FINES AND FORFEITURES - A fine is a financial penalty imposed by a government agency as restitution for wrongdoing. The wrongdoing is typically defined by a codification of legislation, regulations, and decrees. Forfeiture is the automatic loss of property, including cash, as a penalty for breaking the law, or as compensation for losses resulting from illegal activities. Once property has been forfeited, the City may claim it, resulting in confiscation of the property. FISCAL YEAR - The period designated by the City signifying the beginning and ending period for recording financial transactions. The City of Temecula has a fiscal year of July 1 through June30. FRANCHISE - A special privilege granted by a government, permitting the continued use of public property, such as refuse disposal and cable television, and usually involving the elements of monopoly and regulation. FULL-TIME EQUIVALENTS (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Most full-time employees are paid for 2,080 hours in a year. FUND - A fiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equities or balances and changes therein which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE - The difference between assets and liabilities that is generally spendable or available for appropriation. Some Governmental funds as well as Proprietary and Fiduciary funds which utilize full accrual basis of accounting also include non -spendable fund balance which includes amounts that cannot be spent because they include prepaid items or inventories or are legally required to be maintained intact, such as the principal portion of an endowment. 388 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF TERMS FUTURE YEARS - The intent of the future period is to project out to ten (10) years, projects that are anticipated by staff and the City Council that will ultimately have a very large impact on the City and surrounding area. GANN APPROPRIATIONS LIMIT - This term refers to Article XIIIB of the California State Constitution that places limits on the amount of proceeds from taxes that state and local governmental agencies can receive and spend each year. GENERAL FUND - Accounts for tax and other general fund revenues (e.g., sales taxes, property taxes, fines and forfeitures, investment interest, etc.) and records the transactions of general governmental services (e.g., police, fire, library, parks and recreation, public service, etc.). GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP) - GAAP is the uniform minimum standards of and guidelines to financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompass the conventions, rules, and procedures necessary to define the accepted accounting practices at a particular time. They include both broad guidelines of general application and detailed practices and procedures. GAAP provides a standard by which to measure financial presentations. GOALS - The desired result of accomplishments within a given time frame, usually a fiscal year. GRANTS - Contributions or gifts of cash or other assets from another government to be used or expended for a specified purpose. INTERGOVERNMENTAL REVENUES - Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. INTERNAL SERVICE FUNDS - Funds used to account for financing of goods or services provided by one department to other departments on a cost -reimbursement basis. LEVY - To impose taxes for the support of government activities. LICENSES, PERMITS AND SERVICE CHARGES - License and permit fees are charged as a means of recovering the cost of regulating various activities. These charges are authorized through the California Government Code and State Constitution. Examples include building permits and business licenses. The City also assesses service charges through user fees on everything from recreation programs to facility rentals. Service charge is also the classification for the Community Services funding allocation from the General Fund to the Temecula Community Services District. It is also the classification for charges back to departments from Internal Service Funds. LONG-TERM DEBT - Debt with a maturity of more than one year after the date of issue. LONG-TERM GOALS - An observable and measurable result, having one or more objectives to be achieved within a set time frame. Annual Operating Budget 1 389 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF TERMS MEASURE C (SPECIAL TAX) - A voter approved 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 streetlights 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. Special Tax is allocated 50% in the General Fund and 50% in the Community Services District. MEASURE S (SALES TAX) - A one cent add -on sales tax, approved by voters on November 8, 2016, to maintain 9- 1-1 emergency response times, prevent cuts to local paramedic/police/fire protection, school safety patrols, youth/afterschool senior, disabled services; improve freeway interchanges/reduce traffic; and other general services. It is estimated that this tax will generate approximately $23 million annually. MISCELLANEOUS REVENUE - Revenue which includes Police charges for services including report copies, fingerprint rolling fees, etc. as well as right of way advertising revenue, charges for planning commission packets and other miscellaneous charges and reimbursements. MODIFIED ACCRUAL BASIS -The accrual basis of accounting adapted to the governmental fund -type measurement focus. Under it, revenues and other financial resource increments are recognized when they become susceptible to accrual that is when they become both "measurable" and "available" to finance expenditures of the current period. Expenditures are recognized when the fund liability is incurred except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when used. All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis for accounting. MOTOR VEHICLE LICENSE FEE - The motor vehicle license fee (MVLF), also called the motor vehicle in- lieu tax, is a tax on the ownership of a registered vehicle in place of taxing vehicles as personal property. The MVLF is paid annually upon vehicle registration in addition to other fees, such as the vehicle registration fee, air quality fees, and commercial vehicle weight fees all of which fund specific state programs. The MVLF funds City services. OBJECTIVES - The necessary steps to be accomplished in order to achieve a desired goal. OPERATING BUDGET - Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled. OPERATING TRANSFERS IN/OUT - Authorized exchanges of cash or other resources between funds. OPERATIONS & MAINTENANCE - Supplies and other materials used in the normal operations of City departments. ORGANIZATION - A unit of operation having specific responsibilities and duties and collectively form an Agency. The terms organization and division is used interchangeably throughout the budget document (i.e., Accounting Organization, Traffic Division, etc.). OTHER TAXES - Classification for all taxes with the exception of property tax and sales and use tax which are defined on their own. Includes Gas Tax, Measure C (Special Tax), Transient Occupancy Tax and Franchise Fees. 390 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF TERMS PRIVATE -PURPOSE TRUST FUNDS - These 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. PROPERTY TAX - A 1% levy upon the assessed valuation of property, as established by Proposition 13 in 1978. PROPERTY TAX IN LIEU OF VLF - A swap from the state of California, where over 90% of California City and county vehicle license fee revenues were exchanged for additional property tax. Subsequent to the Fiscal Year 2004-05 base year, each city's and county's property tax in lieu of VLF increases annually in proportion to the growth in gross assessed valuation in that jurisdiction. RESOURCES - Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. REVENUES - The yield of taxes and other sources of income that a governmental unit collects and receives for public use. SALES AND USE TAX - Sales tax applies to the sale of merchandise, including vehicles within the State of California. The use tax applies to the use, storage or other consumption of those same kinds of items within the state. Sales tax applies when physical merchandise is purchased in California and use tax applies when a similar purchase without tax is made from a business located outside the state. SPECIAL ASSESSMENT - A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. SPECIAL REVENUE FUNDS - These funds are used to account for specific resources that are legally restricted to expenditure for particular purposes. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA) - Successor agency established in order to pay the debts and obligations and to perform the obligated activities of the former Temecula Redevelopment Agency (RDA) due to ABx1 26 which dissolved Redevelopment Agencies. TAXES - Compulsory charges levied by a government to finance services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments. Neither does the term include charges for services rendered only to those paying such charges. TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - An assessment district that was established in Temecula to provide a comprehensive, balanced neighborhood and community park system by constantly reviewing growth, demographics and facilities available. It 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. Annual Operating Budget 1 391 City of Temecula Fiscal Year 2025-26 Annual Operating Budget GLOSSARY OF TERMS 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 TRANSIENT OCCUPANCY TAX - Also called a Hotel Tax, this revenue source originates in a tax placed on lodging facilities for the occupancy of a room. The City of Temecula's Transient Occupancy Tax rate is 8%. TRANSFERS IN/OUT - Payments from one fund to another fund primarily for work or services provided. TRANSFERS TO CIP - Authorized exchanges of cash or other resources to the Capital Improvement Program. UNDESIGNATED FUND BALANCE - Available expendable financial resources in a governmental fund that are not the object of tentative management plans (i.e. designations). UNSPECIFIED - Funds that have not been identified for various proposed projects. USE OF MONEY AND PROPERTY - Classification used for revenue sources which include lease and rental income, as well as investment interest. USER CHARGES/FEES - A sum of money paid by the individual who chooses to access a service or facility. Examples of user fees include building permit fees and recreation class fees. With user fees, the individual directly pays for something he or she wants and receives what he or she has paid for. WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) - WRCOG is a voluntary association that represents Riverside County, 17-member local cities located in Western Riverside County, Eastern Municipal Water District and Western Riverside Water District, that seek to provide cooperative planning, coordination, and technical assistance on issues of mutual concern that cross jurisdictional lines. The primary functions of WRCOG include (a) serve as a forum for consideration, study and recommendation on area -wide and regional problems; (b) assemble information helpful in the consideration of problems peculiar to Western Riverside County; (c) explore practical avenues for intergovernmental cooperation, coordination and action in the interest of local public welfare and means of improvements in the administration of governmental services; and (d) serve as the clearinghouse review body for Federally -funded projects in accordance with Circular A-95 in conjunction with the Southern California Association of Governments. 392 1 Annual Operating Budget City of Temecula Fiscal Year 2025-26 Annual Operating Budget INDEX AdditionalResources................................................................................................................................ 381 Assessed Value of Taxable Property......................................................................................................... 362 Budgetand Fiscal Policies.........................................................................................................................307 BudgetCalendar......................................................................................................................................... 51 Budget Engagement Sessions..................................................................................................................... 50 BudgetProcess............................................................................................................................................46 BudgetaryFund Structure...........................................................................................................................37 California Society of Municipal Finance Officers (CSMFO) Award..............................................................32 CIP — Capital Improvement Program Summary........................................................................................ 265 CIP — Capital Project Expenditure Summary............................................................................................. 275 CIP — Capital Projects Revenue Summary................................................................................................. 271 CIP — Capital Projects Summary — by Funding Source.............................................................................. 280 CIP — Capital Projects Summary — by Project............................................................................................ 293 CIP — Description of Revenue Sources......................................................................................................268 CIP — Expenditure Summary by Project Type...........................................................................................279 CIP— Fund Summary.................................................................................................................................133 CIP— Future Years Projects....................................................................................................................... 306 CIP — Major Revenue Sources................................................................................................................... 274 CIP— Summary of Operating & Maintenance Costs.................................................................................305 CityAttorney.............................................................................................................................................175 CityClerk...................................................................................................................................................169 CityCouncil...............................................................................................................................................153 CityCouncil Resolution............................................................................................................................... 25 CityManager.............................................................................................................................................161 Cityof Temecula at a Glance...................................................................................................................... 33 CityOrganizational Chart............................................................................................................................ 27 CitywideLong -Term Goals..........................................................................................................................29 Community Development Department....................................................................................................193 Community Profile and Demographics.....................................................................................................356 Community Reinvestment Program Funding Matrix................................................................................380 Comparative City Information..................................................................................................................371 Computation of Direct and Overlapping Bonded Debt............................................................................368 ConsolidatedCapital Outlay..................................................................................................................... 359 Departmental Information........................................................................................................................151 Descriptionof Funds...................................................................................................................................39 Directory..................................................................................................................................................... 26 FinanceDepartment.................................................................................................................................179 FireDepartment........................................................................................................................................225 Fiscal Year 2025-26 Debt Obligations.......................................................................................................365 Five -Year Expenditure Projection — General Fund...................................................................................... 59 Five -Year Financial Projection — General Fund...........................................................................................55 Five -Year Financial Projection — Measure S Fund....................................................................................... 63 Five -Year Financial Projection —Temecula Community Services District Fund..........................................67 Five -Year Revenue Projection — General Fund...........................................................................................57 FundBalance Summary.............................................................................................................................. 69 Annual Operating Budget 1 393 City of Temecula Fiscal Year 2025-26 Annual Operating Budget Funding Sources by Department................................................................................................................46 Fundsand Departments.............................................................................................................................44 GANNAppropriations Limit...................................................................................................................... 361 General Fund — Fund Summaries................................................................................................................82 General Fund — Revenue by Source............................................................................................................ 79 General Fund — Revenue Detail..................................................................................................................80 Glossaryof Acronyms............................................................................................................................... 383 Glossaryof Terms..................................................................................................................................... 386 Government Finance Officers Association (GFOA) Award.......................................................................... 31 Human Resources and Risk Management................................................................................................185 Internal Service Funds — Fund Summaries................................................................................................123 Internal Service Funds— Revenue Detail..................................................................................................121 Internal Services Funds.............................................................................................................................251 Largest Employers by Number of Employees...........................................................................................370 LegalDebt Margin.....................................................................................................................................364 LocatorMap..............................................................................................................................................355 Long Range Financial Projection.................................................................................................................53 MajorRevenue Sources..............................................................................................................................71 Mission and Value Statements................................................................................................................... 28 Non-Departmental.................................................................................................................................... 233 Performance Measures.............................................................................................................................135 Principal Secured Property Owners..........................................................................................................367 PublicWorks Department.........................................................................................................................203 SARDA— Fund Summary...........................................................................................................................119 Scheduleof Authorized Positions.............................................................................................................341 Schedule of Changes in Allocated Positions.............................................................................................347 Special Revenue and Debt Service Funds — Fund Summaries....................................................................90 Special Revenue and Debt Service Funds — Revenue Detail.......................................................................88 Summary of Affordable Housing Investment........................................................................................... 373 Summary of Budgeted Positions............................................................................................................... 354 Summary of Changes in Authorized Positions, Personnel and Benefit Costs...........................................339 Summary of City Grant Recipients............................................................................................................ 375 Summary of Federal Grant Expenditures.................................................................................................363 Summaryof Interfund Transfers............................................................................................................... 372 Summary of Property Tax Collections....................................................................................................... 366 Tableof Contents.......................................................................................................................................... 3 TCSD— Fund Summaries...........................................................................................................................109 TCSD— Revenue by Source.......................................................................................................................105 TCSD— Revenue Detail.............................................................................................................................. 106 Temecula Community Services District.................................................................................................... 237 TransmittalMessage.....................................................................................................................................9 Understanding the Budget Document........................................................................................................35 394 1 Annual Operating Budget owl Ai r s �:'" CITY OF TEMECULA, CALIFORNIA PROPOSED CAPITAL IMPROVEMENT PROGRAM FISCAL YEARS 2026-2030 � � � 1�.• Tr.ns �n� "I ■e® ■ ■um ■ ■ IME ■ ■ ONE ■ Capital Improvement Program Fiscal Years 2026-30 City of Temecula City Council Brenden Kalfus, Mayor Jessica Alexander, Mayor Pro Tern Zak Schwank, Council Member James Stewart, Council Member Matt Rahn, Council Member City Management Aaron Adams, City Manager Kevin Hawkins, Assistant City Manager Luke Watson, Deputy City Manager Ron Moreno Public Works Director Jennifer Hennessy, Finance Director City of Temecula 41000 Main Street Temecula, California 92590 (951) 694-6430 TemeculaCA.gov a_.01W �. The Heart of Southern California Wine Country Temecula Mayor Brenden Kalfus was first elected to serve on the City Council in 2022. Mayor Kalfus is notably the first Council Member to have been raised in Temecula since birth. He is now raising his five children alongside his wife, whom he met while attending Temecula Valley High School. "It is an honor and a privilege to be the Mayor of the City I grew up in," Mayor Kalfus states. "Having lived in Temecula for over 33 years, I've seen the growth and change Temecula has gone through. I understand what makes our City special, and I also understand the challenges we face as a community. This year, as your Mayor of Temecula, I will continue to keep public safety, our City's infrastructure, and community engagement my top priorities." With a long-term perspective on the City of Temecula and experiences gained from other cities during his college and his professional career, he places a strong emphasis on investing in public safety and maintaining a safe community. He advocates for beautifully maintained parks, streets, and infrastructure, all of which contribute to a high quality of life where families and local businesses can thrive. Brenden Kalfus Mayor City of Temecula / City of Temecula l/ R Fiscal Years 2026-2030 Wine Country Capital Improvement Program TABLE OF CONTENTS INTRODUCTION............................................................................................................................ 9 TransmittalMessage.............................................................................................................................9 California Society of Municipal Finance Officers (CSMFO) Certificate of Award................................17 CityOrganizational Chart....................................................................................................................18 Descriptionof Levels...........................................................................................................................19 Parameters for CIP Budget Cost Estimates.........................................................................................20 Description of Revenue Sources.........................................................................................................21 Capital Improvement Project List.......................................................................................................26 SUMMARIES................................................................................................................................29 Projected Revenue Summary..............................................................................................................29 CIP Major Revenue Sources Graph.....................................................................................................32 CIPExpenditure Summary..................................................................................................................33 Expenditure Summary by Project Type Chart.....................................................................................37 Capital Projects Summary— by Funding Source.................................................................................38 Capital Projects Summary— by Project...............................................................................................52 Summary of Operating & Maintenance Impacts................................................................................62 CIRCULATIONPROJECTS...............................................................................................................63 Circulation Projects Location Map..................................................................................................... 64 Butterfield Stage Road Storm Drain Improvements.......................................................................... 65 Cherry Street Extension & Murrieta Creek Crossing.......................................................................... 66 De Portola Road/Jedediah Smith Road Roundabout Project............................................................. 67 DiazRoad Expansion.......................................................................................................................... 68 Flashing Beacons & Speed Advisory Signs......................................................................................... 70 1-15 / French Valley Parkway Improvements —Phase II..................................................................... 71 1-15 / French Valley Parkway Improvements —Phase III.................................................................... 73 1-15 / French Valley Parkway Improvements —Phase IV.................................................................... 75 1-15 Congestion Relief........................................................................................................................ 76 1-15 / State Route 79 South Ultimate Interchange............................................................................ 77 Medians& Parkways — Citywide........................................................................................................79 Motor Car Parkway Improvements.................................................................................................... 80 3 / City of Temecula l/ R Fiscal Years 2026-2030 Wine Country Capital Improvement Program TABLE OF CONTENTS Murrieta Creek Bridge at Overland...................................................................................................81 North General Kearny Street Improvements....................................................................................83 Overland Drive Extension Commerce Center...................................................................................84 OverlandDrive Widening..................................................................................................................85 Pavement Rehabilitation Program — Citywide..................................................................................86 Rainbow Canyon Road Pavement Rehabilitation.............................................................................88 Rancho California Road Median Improvements...............................................................................89 Traffic Signal — Equipment Enhancement Program — Citywide........................................................90 Traffic Signal — Installation — Citywide..............................................................................................91 Traffic Signal —System Upgrade (Protected/Permissive Signal Heads)............................................93 Ynez Road Improvements— Phase I..................................................................................................94 Ynez Road Improvements— Phase 11.................................................................................................95 HOUSING......................................................................................................................................97 Housing Projects Location Map........................................................................................................98 Habitat for Humanity — Old Town Units............................................................................................99 Las Haciendas Affordable Housing Project.......................................................................................100 Uptown Temecula Affordable Housing Site......................................................................................101 Vine Creek Affordable Housing Project............................................................................................102 INFRASTRUCTURE/OTHER PROJECTS..........................................................................................103 Infrastructure Projects Location Map...............................................................................................104 American with Disabilities Act (ADA) Transition Plan Implementation............................................105 Auto Mall Wayfinding Signs..............................................................................................................106 Bike Lane and Trail Program — Citywide............................................................................................107 Bike Lane and Trail Program — Great Oak Trail Lighting....................................................................109 Bike Lane and Trail Program — Ronald Reagan Sports Park Trails.....................................................110 Bike Lane and Trail Program —Temecula Creek South Side Trail......................................................111 BikeLane Upgrades — Citywide.........................................................................................................112 BridgeMaintenance..........................................................................................................................113 4 / City of Temecula l/ R Fiscal Years 2026-2030 Wine Country Capital Improvement Program TABLE OF CONTENTS City Facilities Rehabilitation..............................................................................................................114 CityFacility Security..........................................................................................................................115 CitySecurity Camera System............................................................................................................116 Citywide Drainage Master Plan.........................................................................................................117 Citywide Financial System Upgrade..................................................................................................118 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit............................................119 Community Recreation Center (CRC) Renovations...........................................................................120 Community Wildfire Protection Plan................................................................................................121 Comprehensive General Plan Update...............................................................................................122 Electric Vehicles Charging Station.....................................................................................................124 Fiber Optic Communications Systems — Citywide.........................................................................................125 FireStation 73 Gym/Garage..............................................................................................................126 Fire Station 84 Renovation................................................................................................................127 1-15/State Route 79 South Interchange Enhanced Landscaping......................................................128 Interstate 15 Corridor Branding and Visioning Improvements.........................................................129 Library Alternative Emergency Operations Center Enhancements..................................................130 Library Technology Enhancements...................................................................................................131 Local Roadway Safety Plan Update...................................................................................................132 Margarita Recreation Center............................................................................................................133 Mary Phillips Senior Center Enhancement and Renovation............................................................ 134 Medians & Traffic Calming Improvements — Citywide.....................................................................135 Murrieta Creek Improvements.........................................................................................................136 Nicolas Road Multi -Use Trail Extension............................................................................................138 Old Town Parking Improvements.....................................................................................................139 Old Town Security Camera &Sound System.....................................................................................140 Old Town Temecula Parklets Program..............................................................................................141 Pavement Management Program Update........................................................................................142 Pedestrian Ramp Upgrades — Citywide.............................................................................................143 Santa Gertrudis Creek Phase 11— Margarita Under-Crossing............................................................144 Sidewalks— Citywide.........................................................................................................................145 5 / City of Temecula l/ R Fiscal Years 2026-2030 Wine Country Capital Improvement Program TABLE OF CONTENTS Sidewalks — Old Town Improvements...............................................................................................146 Sidewalks— Pauba Road....................................................................................................................147 Sixth Street Improvements...............................................................................................................148 South Side Senior Center for Active Adults.......................................................................................149 StormDrain Pipe Lining.....................................................................................................................150 Temecula Creek Fencing...................................................................................................................151 Traffic Signal — Pedestrian Signal Equipment Upgrade Phase 2 — Citywide......................................152 Traffic Signal — Safety Lights and Signal Communications Upgrade — Citywide...............................153 Traffic Signal Fiber Optic Extension..................................................................................................154 Utility Undergrounding— Citywide...................................................................................................155 Vacant Parcel Clean -Up and Beautification......................................................................................156 PARKS AND RECREATION PROJECTS............................................................................................157 Parks and Recreation Projects Location Map...................................................................................158 Children's Museum Enhancement Project........................................................................................159 Community Recreation Center Splash Pad &Shade Structures........................................................160 DogPark Renovation.........................................................................................................................161 Empire Creek Improvements............................................................................................................162 Harveston Community Park Building Renovations and Expansion...................................................163 Infill Recreational Amenities.............................................................................................................164 Long Canyon Creek Park Restrooms.................................................................................................165 Park Restroom Renovations, Expansion and Americans with Disabilities Act (ADA) Improvement 166 Parks Improvement Program............................................................................................................167 PickleballCourts................................................................................................................................168 Playground Equipment Enhancement & Safety Surfacing................................................................170 Ronald Reagan Sports Park Hockey Rink...........................................................................................171 Ronald Reagan Sports Park Restroom Expansion & Renovation...................................................... 172 Ronald Reagan Sports Park Skate Park.............................................................................................173 SportsCourt Resurfacing..................................................................................................................174 Sports Field Lighting — Light Emitting Diode (LED) Conversion.........................................................175 Uptown Temecula Sports Park..........................................................................................................176 Vail Ranch Park Restrooms...............................................................................................................177 11 / City of Temecula C R Fiscal Years 2026-2030 The Heart of Southern California Wine Country Capital Improvement Program TABLE OF CONTENTS PROJECTS FUNDED BY COMMUNITY FACILITIES DISTRICT BONDS PROJECTS................................179 Projects Funded by Community Facilities District Bonds Project Locator Map................................180 Butterfield Stage Road Extension.....................................................................................................181 Nicolas Road Extension & Improvements.........................................................................................182 FUTURE YEAR PROJECTS.............................................................................................................183 APPENDIX..................................................................................................................................185 LocatorMap......................................................................................................................................185 Summary of Completed Projects......................................................................................................186 Glossaryof Terms..............................................................................................................................188 Summary of Affordable Housing Investment...................................................................................195 Fiscal Year 2025-26 Debt Obligations...............................................................................................197 Status of Pavement Management Program......................................................................................198 7 I ' •ui 1p F / City of Temecula l/ R Fiscal Years 2026-2030 The Heart of Southern California Wine Country Capital Improvement Program TRANSMITTAL MESSAGE May 27, 2025 Members of the City Council: It is with great pleasure that I submit the City of Temecula's Capital Improvement Program (CIP) Budget for Fiscal Years 2025-26 through 2029-30. This document is the result of several internal CIP review meetings, which incorporates previous City Council direction and feedback obtained from each of the City's Commissions. Staff has analyzed each project for feasibility, necessity, funding sources, and timing. All departments were involved in the process and contributed significantly to the discussions, resulting in a comprehensive Five -Year Capital Improvement Program. All projects presented in this five-year budget have been carefully programmed to ensure the community's capital improvement needs are met both now and in the future. CITY OF TEMECULA PROFILE AND DEMOGRAPHICS The City of Temecula is a dynamic community located approximately 60 miles north of San Diego, California. The City extends across 30 square miles of gently rolling hills and comprises approximately 112,220 residents from diverse cultural backgrounds. 0 Population 42 City 325 Miles 29 K-12 Average Median Unemployment 112,220 Parks of Streets Schools Income Home Price Rate 4.6% $145,129 $771,000 (Apr'25) (Apr'25) Temecula's residents enjoy one of the finest lifestyles Southern California has to offer. Environmental and residential factors produce a beautiful setting that attracts young, well- educated families to homes that are 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 approachedy . economic growth from a qualitativet J �` standpoint, providing Temecula 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 r •►=- State average, and Temecula has been recognized as one of Nation's safest cities. 0] / City of Temecula l/ R Fiscal Years 2026-2030 The Heart of Southern Countr• Wine CCountry Capital Improvement Program FISCAL YEARS 2026-30 CIP HIGHLIGHTS The CIP includes a total of $894,070,582 in identified capital projects, with a total of $624,379,144 in project funding, representing 70% of all Project Costs. There is $269,691,438 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 be secured before the project construction can commence. Capital projects are categorized into five Project Types, as noted in the adjacent table. Project Type Number of Projects Total Project Cost Circulation 24 632,429,570 Housing 4 20,401,000 Infrastructure 49 117,740,242 Parks/Rec 18 59,908,080 CFD-Funded Total • 2 97 63,591,689 894,070,582 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 Fiscal Years 2026-30 CIP program reflects 61% from outside funding sources, with the remaining 39% provided by various City funds, including Measure S, Measure A, Development Impact Fee Funds, General Fund, Capital Financing, and several other sources Capital Protect Funding Sources TUMF, 54,161,598, 9%. CityFunds, State/Local Grants, 79,448,743,13% 244,469,320, 39% Successor Agency, 750,000,0% 401i'm Reimbu Refmbursemerm, 40,952,252, 6% Federal Grants, 96,030,114, 15% Development Community Impact Fees, Facility Districts, 53,591,561, 9% 54,975,557, 9% Only one new project has been added to the CIP, the Local Roadway Safety Plan Update ($155,000) which is designed to bring the Plan in line with federal safety requirements. During the CIP process this year, several high -profile projects required additional funding, due to rising costs and higher than anticipated construction bids. The Public Works department collaborated with the City Manager's Office and the Budget Team to identify projects that could be reduced, shifted out to a future year, or be cancelled. The results of this analysis are summarized below: ■ 10 Projects had funding reductions totaling $4,069,981 ■ 4 Projects moved to Future Years (beyond FY29-30) totaling $40,778,721, the majority of which has unspecified funding sources 10 / City of Temecula C R Fiscal Years 2026-2030 The Heart of Southern California Wine Country Capital Improvement Program 5 Projects were cancelled totaling $13,528,850 32 Projects requested additional funding, totaling $44,806,118, of which $19,123,000 has an unspecified funding source. 48 Projects remained unchanged This re -prioritization of project funding created available sources to fund the highest priority projects slated for Fiscal Year 2025-26, which include: ■ Fire Station 73 Gym/Garage ($5,165,680) ■ Fire Station 84 Training Room Renovation ($3,529,450) ■ Ronald Reagan Sports Park Skate Park ($6,110,000) ■ Ronald Reagan Sports Park Hockey Rink ($4,120,406) ■ Pavement Rehabilitation, including the La Paz Road Roundabout Reconstruction ($12,719,086 over FY24-25 and FY25-26 combined) As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. The amounts identified in the table below are incorporated into the Proposed Operating Budget and the Five -Year Financial Projections. Summary of Operating & Maintenance Impacts Maintenance and Operations of PW17-01/711- CITY SECURITY CAMERA SYSTEM Security Camera System 300,000 300,000 300,000 300,000 300,000 FN19-01/724 - CITYWIDE FINANCIAL SYSTEM UPGRADE Annual Software Maintenance 861U00 86,U00 86,000 86,000 86,000 ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT Electricity Savings (695,286) (709,475) (723,665) (733,138) (752,901) PW 21-09/683 - ELECTRIC VEHICLES CHARGING STATION Electric Charging Vehicles Fees (3,1DO) (3,100) (3,100) (3,100) (3,100) PW 17-19/690 -1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING Required by Caltrans 60,805 62,046 63,289 65,189 67,144 PW17-21/692- MARGARITA RECREATION CENTER Staffing for MRC(4 positions) 526,609 548,551 570,493 591,600 614,370 Project Staffing for MRC (45 positions- 13.07 FTEs) 705,946 735,361 764,775 795,366 825,978 Additional Utility Costs 71,371 72,828 74,285 77,034 79,999 Janitorial/Severity 129,251 131,888 134,526 139,SO4 144,873 1,433,177 1,488,628 1,544,079 1,603,SO4 1,665,220 FT20-01/780- OLD TOWN SECURITY CAMERA& Maintenance fee for Old Town SOUND SYSTEM Sound System 75,ODO 75,000 75,000 75,000 7S,OD0 PW PE07-03/PW23-18 - LONG CANYON CREEK PARK RESTROOMS Janitorial Services 29,866 30,475 31,085 31,706 32,340 PWPE-07/155 - PARK RESTROOMS RENOVATIONS, EXPANSION AND ADA IMPROVEMENTS Janitorial Services 27,591 28,154 28,717 29,292 29,878 t tRESTROOMS r, t: t. 32,340 Total Incremental Operating & Maintenance rn patts 1,343,919 1,388,203 1,432,490 1,481,158 1,531,921 11 / City of Temecula l/ R Fiscal Years 2026-2030 The Heart of Southern Cal,f Wine Countt Capital Improvement Program Country Capital LOCAL ECONOMY AND LEGISLATIVE IMPACTS Local Economy As the economic indicators noted above have improved over 2024, the impact to the local economy is evident in the retail activity and sales tax trends. Despite a flattening of Sales Tax revenue in the current year, it is projected to grow at a modest 2.5% next fiscal year, as both national retailers and local entrepreneurs continue to invest in Temecula by opening businesses, undergoing expansion projects and starting new construction. Currently, there are seventeen new businesses slated to open soon, including a hotel, multiple retailers, restaurants and breweries. In addition, several auto dealers are undergoing expansions within the Temecula Auto Mall. =79 7L� = # r•8r��r•r. •lanbei 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 residents generated $37,209 in sales tax per capita in 2024, which far outpaced neighboring cities and statewide averages. Per Capita Sales Temecula $14,000 $12,000 Riverside County $10,000 Southern California S8.000 California $6,000 $4,000 Source: HdL Companies $2,000 40 10 20 30 4Q 1Q 2Q 313 40 10 2Q 3Q 4Q 21 22 22 22 22 23 23 23 23 24 24 24 24 12 / City of Temecula l/ R Fiscal Years 2026-2030 The Heart of Southern California Wine Country Capital Improvement Program 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: 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: Senate Bill 937 Impact Fee Deferral - SB 937 was signed into law on September 19, 2024 and became effective January 1, 2025. This new law prohibits the local agencies from collecting the fees or charges from a Designated Residential Development Project for the construction of public improvements or facilities until the first occupancy certificate or first temporary certificate of occupancy is issued. The local agency may collect utility service fees at the time of application for service. It may charge the fees prior to the certificate of occupancy if construction does not begin within five years of the date the building permit is issued. The local agency may require the payment of these fees or charges at an earlier time if the conditions specified in the code are met. Assembly Bill 1868 Property Taxation on Affordable Housing — AB 1868 was enacted in 2024 and became effective on January 1, 2025. The bill primarily deals with property taxation and affordable housing, specifically focusing on how county assessors value property for tax purposes when its subject to restrictions for affordable housing. It establishes a rebuttable presumption that the value of property subject to certain affordable housing contracts is no more than the sum of the first mortgage and down payment 13 / City of Temecula l/ R Fiscal Years 2026-2030 The Heart of Southernou Wine CCountryntry Capital Improvement Program CIP BUDGET DEVELOPMENT PROCESS Each year in January, the City begins the annual Capital Improvement Program budget process with the review of revenue projections and funding sources available for capital projects. The Community Development, Public Works and Fire Departments review the City's projected development activity and corresponding permit fees, development impact fees and related revenues. Grant opportunities are identified as well as available funding from the various City funds. Once all funding sources have been identified, departments review and update their respective capital projects. Update Update Evaluate Prepare Council Final During the March/April timeframe, all departments participate in an evaluation of the requested projects. Management evaluates project priorities to ensure the City's strategic priorities and goals are met. Additionally, management reviews alternative funding options for the requested projects to ensure eligibility and availability of the request funding sources. Additionally, Finance staff holds Budget Engagement Sessions with each of the City's commissions to gain feedback on budget priorities. In May, the Annual Operating and Capital Improvement Program Budgets are presented to the City Council during their Budget Workshop. Any recommended changes from the workshop will be incorporated into the Final Budget, scheduled to be considered by the City Council at their May 27, 2025 meeting. CAPITAL BUDGET POLICIES The purpose of the CIP Budget document is to serve as a planning tool, which coordinates the financing and scheduling of major projects undertaken by the City. The CIP Budget document has been prepared in accordance with generally accepted accounting principles. This document is dynamic and is revised annually to address changing needs, priorities, and financial conditions. The capital improvements presented in this document include major projects which exceed $30,000 in cost, have long-term life spans, and are generally non -recurring. Each project cost is identified based on current year estimates. Operating and maintenance costs associated with the projects are projected with a 2% annual inflator and are reflected in the City of Temecula's Annual Operating Budget. Budget Revenue Project Funding Preliminary workshop Budget Forecasts Requests Options CIP Budget (May Adoption (Jan) (Feb/Mar) (Mar/Apr) (Apr) 22nd) (May 27th) 14 / City of Temecula l/ R Fiscal Years 2026-2030 The Heart of Southern Californ,.. Wl°e Count, Capital Improvement Program The City's Planning Commission reviews all capital projects for consistency with the General Plan as required by California Government Code Section 65401 and provides its findings to the Council prior to the adoption of the Final Capital Improvement Program. Amendments to the Capital Improvement Program up to $100,000 may be authorized by the City Manager. Any expenditure of funds in excess of $100,000 requires City Council action. CORE VALUES / STRATEGIC PRIORITIES The City Council adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The Temecula 2040 Plan is a living document that reflects the vision and long-term goals of the City. As Temecula continues to grow and mature, the Temecula 2040 Plan will be a crucial part of not only maintaining the City's quality of life, but to take a proactive approach and identify specific community needs, goals, and possible improvements. The City of Temecula utilizes the QLMP to formulate and budget Citywide projects and programs. In addition, the QLMP is used to guide future planning, investment decisions, to provide vision and continuity for the next phase of the City's journey, and for continuous process improvement in partnership with Temecula's residents. In an effort to incorporate the QLMP into the City's budget process, the QLMP includes specific goals based on the Core Values of the QLMP. The QLMP outlines 7 Core Values: Sustainable & Resilient City Healthy & Livable City Transportation Mobility &Connectivity Economic Prosperity Accountable & Responsive City rm Government Safe & Prepared Community Equity All projects presented in the CIP are carefully programmed in concurrence with the City's Quality of Life Master Plan to ensure the community's capital improvement needs are met both now and in the future. The project budget sheets reference the specific Core Value(s) each project satisfies. The framework for the CIP is further defined in the City's CIP fiscal policy to provide a 15 / City of Temecula l/ R Fiscal Years 2026-2030 The Heart of Southern Californ,.. Wl°e Count, Capital Improvement Program 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. Projects in this document 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 project category have been assigned in accordance with the priority guidelines as shown on the Description of Priorities page herein. Additionally, since many projects in the CIP are conceptual in nature, a general outline for cost estimates are utilized as shown on the Parameters for CIP Budget Cost page herein. CONCLUSION The revenue estimates, although conservative, are strictly estimates. The actual amount of funding available for construction will vary based upon the state of the economy. The City's major revenue sources are primarily received from various Federal grants, State grant programs, County programs and Special Districts. The City Council will be updated throughout the year on the status of projects and corresponding revenue sources. The Fiscal Years 2026-30 Capital Improvement Program is a result of a total team effort of both City staff and City Council. These projects are intended to enhance the safety and quality of life for all citizens in the City of Temecula. I would like to thank staff and the City Council for all of the contributions that were made in developing the capital budget that will serve as the footprint for Temecula's future. Sincerely, AL - Aaron Adams City Manager 16 The Heart of Southern Cahfo—a Wine Country City of Temecula Fiscal Years 2026-2030 Capital Improvement Program 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 Capital Budget, staff has once again followed CSMFO's criteria. This document will be submitted to the CSMFO for the Fiscal Year 2024-25 budget award program. California Society of Municipal Finance Officers Certificate of Award Capital Budget Excellence Award Fiscal Year 2024-2025 Presented to the City of Temecula For meetine the criteria established to achieve a CSMFO Award in Budgeting. Fehruary 7, 2025 �2ILGQ Ernie Reyna 2024 CSMFO President Jams Rassell-Field, Chair Recognition Connnittee Dedicated to Excellence in Municipal Financial Reporting 17 ► � I Zak Schwank Council Member District 5 r A Kevin Hawkins Assistant City Manager Jessica Alexander Mayor Pro Tern District 2 f, ts� Betsy Lowrey Assistant to the City Manager ► M1 4 Temecula Citizens Brenden Kalfus Mayor District 3 Aaron Adams City Manager \a i.A Luke Watson Deputy City Manager r -1 '\ - 'I' T �. Isaac Garihael Heslin Erica Russo Ron Moreno Matt Peters DirectorofHuDirector of Director of Director Of Public Director or Community Resources andmation Systems Community Services Works/City Engineer Development Matt Rahn James Stewart Council Member Council Member District 1 District 4 Peter Thorson City Attorney 1 nifer Hennessy Randi Johl MOkRli John Crater Director of Director of Legislative Captain/Temecula Division Chief/ Finance Affairs/City Clerk Police Chief• Temecula Fire Chief. The Heart of Southern Callf—,.. Wne count,,. City of Temecula Fiscal Years 2026-2030 Capital Improvement Program DESCRIPTION OF LEVEL RANKING AND FUTURE YEARS PROJECTS 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. 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. 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. 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. 19 wee co��,�•. City of Temecula Fiscal Years 2026-2030 Capital Improvement Program PARAMETERS FOR CIP BUDGET COST ESTIMATES Estimated Total Proiect Administration Costs Estimated Cost Property Zoning Costs Percentage (vacant, per sq. ft.) Over $10 Million 7% Industrial Property $20.00 $5 Million to $10 Million 10% Commercial/Retail/Office $40.00 $1 Million to $5 Million 15% Commercial — Old Town $110.00 $500,000 to $1 Million 20% Rural/Residential $2.00 - $5.00 $100,000 to $500,000 25% Flood Plain $1.50 Less than $100,000 30% Multi -Family Residential $9.00 Single Family Residential $6.00 Estimated Total Design Costs Building Type Estimated Cost Construction Costs Percentage Over $10 Million 7% Assembly Use Building (per sq. ft.) $450 $5 Million to $10 Million 10% Office (per sq. ft.) $400 $1 Million to $5 Million 15% Multi -Family Housing (persq.ft.) $300 $500,000 to $1 Million 18% Community Parks (per acre) $500,000 $100,000 to $500,000 20% Neighborhood Parks (peracre) $400,000 Less than $100,000 25% Parameters for the CIP cost estimates are adjusted annually to reflect current economic conditions and cost of living increases. Future operating and maintenance costs are estimated based on the life of the project to maintain the project life with a 2% yearly inflator, where applicable, and are included in the City of Temecula annual operating budget. 20 R City of Temecula Fiscal Years 2026-2030 Capital Improvement Program DESCRIPTION OF REVENUE SOURCES Affordable Housing Fund 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. 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. Community Reinvestment Program The fund was established to provide various community grants to support the local economy in its recover from the COVID-19 global pandemic. 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. 21 City of Temecula Fiscal Years 2026-2030 Capital Improvement Program DESCRIPTION OF REVENUE SOURCES Gas Tax Fund 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 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.0 §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. 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. 22 City of Temecula Fiscal Years 2026-2030 Capital Improvement Program DESCRIPTION OF REVENUE SOURCES 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). 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 forthe 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. 23 City of Temecula Fiscal Years 2026-2030 Capital Improvement Program DESCRIPTION OF REVENUE SOURCES Senate Bill 821 B 821, the Bicycle and Pedestrian Facilities Program, is provided through the Transportation Development Act (TDA), funded through a % 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. Service Level C 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). 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. Street Maintenance Fund This fund was established to accumulate resources for the future replacement of streets and roads throughout the City. 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. 24 City of Temecula Fiscal Years 2026-2030 Capital Improvement Program DESCRIPTION OF REVENUE SOURCES 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. TEAM Fund 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. 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. Uptown Temecula new Streets In -Lieu Fees 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. WRCOG-BEYOND Framework Fund Program Local assistance funding program for Economic Development and Sustainability Projects. 25 The Heart of Southern Calif—.f Wine Counti,. City of Temecula Fiscal Years 2026-2030 Capital Improvement Program Capital Improvement Program - Project List (Sorted by Account Number) 817 AH20-01 LAS HACIENDAS AFFORDABLE HOUSING PROJECT COMDV Housing 820 AH20-02 VINE CREEK AFFORDABLE HOUSING PROJECT COMDV Housing 827 AH22-01 HABITAT FOR HUMANITY - OLD TOWN UNITS COMDV Housing AH23-01 UPTOWN TEMECULA AFFORDABLE HOUSING SITE COMDV Housing 703 CD18-01 BIKE LANE AND TRAIL PROGRAM - CITYWIDE COMDV Infrastructure 772 CD23-01 COMMUNITY WILDFIRE PROTECTION PLAN COMDV Infrastructure CD24-01 OLD TOWN TEMECULA PARKLETS PROGRAM COMDV Infrastructure CD24-02 VACANT PARCEL CLEAN-UP AND BEAUTIFICATION COMDV Infrastructure 790 CM22-01 AUTO MALL WAYFINDING SIGNS CITY MGR Infrastructure 724 FN19-01 CITYWIDE FINANCIAL SYSTEM UPGRADE FN Infrastructure 780 IT20-01 OLD TOWN SECURITY CAMERA & SOUND SYSTEM ITSS Infrastructure IT24-01 LIBRARY TECHNOLOGY ENHANCEMENTS ITSS Infrastructure IT24-02 LIBRARY ALTERNATE EMERGENCY OPERATIONS CENTER ITSS Infrastructure ENHANCEMENTS NEW (PW25- LOCAL ROADWAY SAFETY PLAN UPDATE PW Infrastructure 03) 662 PW04-08 1-15/STATE ROUTE 79 SOUTH ULTIMATE INTERCHANGE PW Circulation 735 PW15-07 MURRIETA CREEK IMPROVEMENTS PW Infrastructure 723 PW15-11 BUTTERFIELD STAGE ROAD EXTENSION PW CFD Funded 726 PW16-01 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE II PW Circulation 648 PW16-05 MURRIETA CREEK BRIDGE AT OVERLAND PW Circulation 602 PW16-06 OVERLAND DRIVE EXTENSION COMMERCE CENTER PW Circulation 711 PW17-01 CITY SECURITY CAMERA SYSTEM ITSS Infrastructure 694 PW17-15 OLD TOWN PARKING IMPROVEMENTS PW Infrastructure 535 PW17-17 YNEZ ROAD IMPROVEMENTS - PHASE 11 PW Circulation 688 PW17-18 CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE PW Infrastructure (LED) RETROFIT 690 PW17-19 1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED PW Infrastructure LANDSCAPING 692 PW17-21 MARGARITA RECREATION CENTER PW Infrastructure 521 PW17-25 DIAZ ROAD EXPANSION PW Circulation 114 PW18-03 RONALD REAGAN SPORTS PARK RESTROOM EXPANSION & PW Parks/Recreation RENOVATION 612 PW18-16 AMERICANS WITH DISABILITIES ACT (ADA) TRANSITION PLAN PW Infrastructure IMPLEMENTATION 609 PW19-02 1-15 CONGESTION RELIEF PW Circulation 728 PW19-03 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE III PW Circulation 732 PW19-04 SANTA GERTRUDIS CREEK PHASE II - MARGARITA UNDER -CROSSING PW Infrastructure 125 PW19-05 CHILDREN'S MUSEUM ENHANCEMENT PROJECT TCSD Parks/Recreation W The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-2030 Capital Improvement Program Capital Improvement Program - Project List 730 PW19-07 COMMUNITY RECREATION CENTER (CRC) RENOVATIONS PW Infrastructure 610 PW19-09 TRAFFIC SIGNAL - SYSTEM UPGRADE (Protected/Permissive Signal PW Circulation Heads) 697 PW19-13 FIRE STATION 73 GYM/GARAGE Fire Infrastructure 687 PW19-14 FIRE STATION 84 RENOVATION Fire Infrastructure 722 PW19-16 CITYWIDE DRAINAGE MASTER PLAN PW Infrastructure 783 PW20-11 OVERLAND DRIVE WIDENING PW Circulation 782 PW20-13 MARY PHILLIPS SENIOR CENTER ENHANCEMENT AND RENOVATION PW Infrastructure 604 PW20-14 NICOLAS ROAD EXTENSION & IMPROVEMENTS PW CFD Funded 777 PW21-02 COMPREHENSIVE GENERAL PLAN UPDATE COMDV Infrastructure 787 PW21-03 PICKLEBALL COURTS PW Parks/Recreation 205 PW21-07 COMMUNITY RECREATION CENTER SPLASH PAD & SHADE PW Parks/Recreation STRUCTURES 683 PW21-09 ELECTRIC VEHICLES CHARGING STATION PW Infrastructure 207 PW21-14 DOG PARK RENOVATION PW Parks/Recreation 768 PW21-16 BIKE LANE AND TRAIL PROGRAM - GREAT OAK TRAIL LIGHTING PW Infrastructure 223 PW22-06 RONALD REAGAN SPORTS PARK HOCKEY RINK PW Parks/Recreation 222 PW22-07 RONALD REAGAN SPORTS PARK SKATE PARK PW Parks/Recreation 221 PW22-12 UPTOWN TEMECULA SPORTS PARK PW Parks/Recreation 786 PW22-15 RAINBOW CANYON ROAD PAVEMENT REHABILITATION PW Circulation 797 PW23-01 DE PORTOLA ROAD / JEDEDIAH SMITH ROAD ROUNDABOUT PW Circulation PROJECT 534 PW23-02 YNEZ ROAD IMPROVEMENTS - PHASE I PW Circulation 791 PW23-04 RANCHO CALIFORNIA ROAD MEDIAN IMPROVEMENTS PW Circulation 226 PW23-05 INFILL RECREATIONAL AMENITIES PW Parks/Recreation PW23-09 PAVEMENT MANAGEMENT PROGRAM UPDATE PW Infrastructure PW23-10 BIKE LANE UPGRADES - CITYWIDE PW Infrastructure PW23-11 PEDESTRIAN RAMP UPGRADES - CITYWIDE PW Infrastructure PW23-12 TRAFFIC SIGNAL - PEDESTRIAN SIGNAL EQUIPMENT UPGRADE PW Infrastructure PHASE 2 - CITYWIDE PW23-13 TRAFFIC SIGNAL - SAFETY LIGHTS AND SIGNAL COMMUNICATIONS PW Infrastructure UPGRADE- CITYWIDE 792 PW23-15 BUTTERFIELD STAGE ROAD STORM DRAIN IMPROVEMENTS PW Circulation PW23-20 EMPIRE CREEK IMPROVEMENTS PW Parks/Recreation PW23-23 TEMECULA CREEK FENCING PW Infrastructure PW24-05 SOUTH SIDE SENIOR CENTER FOR ACTIVE ADULTS PW Infrastructure PW25-01 TRAFFIC SIGNAL FIBER OPTIC EXTENSION PW Infrastructure PW28-99 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE IV PW Circulation PWBM-05 BRIDGE MAINTENANCE PW Infrastructure PWBV-24 INTERSTATE 15 CORRIDOR BRANDING AND VISIONING PW Infrastructure IMPROVEMENTS 27 The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-2030 Capital Improvement Program Capital Improvement Program - Project List 670 PWFB-18 FLASHING BEACONS & SPEED ADVISORY SIGNS PW Circulation 789 PWFO-21 FIBER OPTIC COMMUNICATIONS SYSTEMS— CITYWIDE PW Infrastructure 701 PWFR-11 CITY FACILITIES REHABILITATION PW Infrastructure 779 PWFS-08 CITY FACILITY SECURITY PW Infrastructure 620 PWMI-17 MOTOR CAR PARKWAY IMPROVEMENTS PW Circulation 622 PWMP-09 MEDIANS & PARKWAYS - CITYWIDE PW Circulation 785 PWNT-25 NICOLAS ROAD MULTI -USE TRAIL EXTENSION PW Infrastructure 766 PWOT-03 SIDEWALKS -OLD TOWN IMPROVEMENTS PW Infrastructure PWOT-03- SIXTH STREET IMPROVEMENTS PW Infrastructure 01/PW22-16 155 PWPE-07 PARK RESTROOMS RENOVATIONS, EXPANSION AND AMERICANS PW Parks/Recreation WITH DISABILITIES ACT (ADA) IMPROVEMENTS PWPE-07-02/ VAIL RANCH PARK RESTROOMS PW Parks/Recreation PW23-06 PWPE-07-03/ LONG CANYON CREEK PARK RESTROOMS PW Parks/Recreation PW23-18 120 PWPG-13 PLAYGROUND EQUIPMENT ENHANCEMENT & SAFETY SURFACING PW Parks/Recreation 130 PWPI-14 PARKS IMPROVEMENT PROGRAM PW Parks/Recreation 655 PWPR-01 PAVEMENT REHABILITATION PROGRAM - CITYWIDE PW Circulation PWSD-23 STORM DRAIN PIPE LINING PW Infrastructure 113 PWSL-12 SPORTS FIELD LIGHTING - LIGHT EMITTING DIODE (LED) PW Parks/Recreation CONVERSION 141 PWSR-15 SPORTS COURT RESURFACING PW Parks/Recreation 708 PWSW-02 SIDEWALKS - CITYWIDE PW Infrastructure PWSW-02-02 SIDEWALKS-PAUBA ROAD PW Infrastructure 704 PWTC-20 MEDIANS & TRAFFIC CALMING IMPROVEMENTS - CITYWIDE PW Infrastructure 680 PWTE-19 TRAFFIC SIGNAL - EQUIPMENT ENHANCEMENT PROGRAM - PW Circulation CITYWIDE 682 PWTS-06 TRAFFIC SIGNAL - INSTALLATION - CITYWIDE PW Circulation 776 PWUG-04 UTILITY UNDERGROUNDING - CITYWIDE PW Infrastructure 817 AH20-01 LAS HACIENDAS AFFORDABLE HOUSING PROJECT COMDV Housing 820 AH20-02 VINE CREEK AFFORDABLE HOUSING PROJECT COMDV Housing 827 AH22-01 HABITAT FOR HUMANITY - OLD TOWN UNITS COMDV Housing AH23-01 UPTOWN TEMECULA AFFORDABLE HOUSING SITE COMDV Housing 703 CD18-01 BIKE LANE AND TRAIL PROGRAM - CITYWIDE COMDV Infrastructure 772 CD23-01 COMMUNITY WILDFIRE PROTECTION PLAN COMDV Infrastructure CD24-01 OLD TOWN TEMECULA PARKLETS PROGRAM COMDV Infrastructure W The Heart of Sout�ifornia wipe C.-try City of Temecula Fiscal Years 2026-30 Capital Improvement Program Capital Projects Revenue Summary 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source Actuals Amended Budget Projected Projected Projected Projected Cost City Funds Affordable Housing Assembly Bill 2766 Capital Financing Community Reinvestment Program Contribution of Land Facilities Replacement Fund Gas Tax General Fund Measure A Measure S RMRA - Road Repair & Accountability Act Service Level C - Zone 28 Street Maintenance Fund TEAM - Temecula Energy Efficiency Asset Fund Technology Replacement Fund Uptown Temecula New Streets In Lieu Fee City Funds Total Community Facility District Funds CFD 01-02 (Harveston) CFD 03-01 (Crowne Hill) CFD 03-02 (Roripaugh Ranch) CFD 16-01 (Roripaugh Ranch -Phase II) Community Facility Districts Total Development Impact Fee Funds DIF-Corporate Facilities DIF-Fire Protection Facilities DIF-Library Facilities DIF-Open Space & Trails DIF-Park & Rec Improvements DIF-Police Facilities DIF-Quimby 9,617,578 440,483 6,405,000 78,652 2,350,965 1,200,000 19,624,796 26,048,478 44,806,310 10,430,387 460,191 3,600,000 248,077 62,028 125,372,946 5,091,359 589,075 6,346,348 561,000 2,722,395 1,485,352 8,390,869 34,282,099 6,098,426 39,809 2,937,307 550,852 701,506 500,857 70,297,253 1,005,840 502,211 38,413,523 8,331,133 6,722,850 39,921,574 15,053,983 1,550,73 102,21 431,310 3,563,016 1,232,369 4,181,189 14,708,937 50,000 160,000 175,000 185,000 185,000 1,784,558 6,405,000 6,425,000 1,300,000 1,861,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 10,073,360 1,200,000 500,000 21,610,148 2,872,160 1,312,000 1,889,160 1,492,000 1,492,000 43,496,667 8,809,109 1,686,535 2,508,710 438,660 2,048,710 94,580,133 2,827,154 2,883,697 2,941,371 3,000,198 3,115,180 31,296,413 500,000 1,927,477 8,464,784 798,929 763,534 500,857 17,985,900 8,342,232 8,514,241 6,115,858 7,840,890 244,469,320 440,000 667,131 473,374 940,000 1,562,908 2,208,256 414,624 25,744 2,587,965 1,516,240 29 649,000 500,000 2,000,000 1,000,000 502,211 46,744,656 6,722,850 54,975,557 2,657,869 575,584 940,000 1,994,218 8,185,896 1,907,113 9,785,394 The Heart of Sout�ifornia wi—C... try City of Temecula Fiscal Years 2026-30 Capital Improvement Program Capital Projects Revenue Summary 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Funding Source Actuals Amended Budget Projected Projected Projected Projected DIF-Street Improvements DIF-Traffic Signals Development Impact Fees Total Federal Grants BTA - Bicycle Transportation Account CDBG - Community Development Block Grant CPFCDS- Community Project Funding/Congressionally Directed Spending HBP-Highway Bridge Program HSIP-Highway Safety Improvement Program INFRA - Infrastructure for Rebuilding America Grant SAFETEA-LU - Safe, Accountable, Flexible, Efficient Transportation STP (RCTC) - Surface Transportation Program Federal Grants Total Reimbursements/Other County AD 159 Developer Contribution Reimbursement-Pechanga IGA Reimbursements Reimbursements/Other Reimbursements/Other Total SuccessorAgency RPTTF-Redevelopment Property Tax Trust Fund Successor Agency Total 11,537,814 1,922,882 24,521,528 5,184,866 1,628,615 5,738,847 857,463 375,000 14,280,576 4,226,610 7,262,847 3,000,000 2,957,688 11,843 325,000 325,000 2,000,000 530,421 3,924,579 18,472,874 394,215 95,295 24,512,035 25,487,965 1,439,839 1,602,360 12,279,728 696,272 42,113,926 31,818,314 325,000 20,797,874 4,008,270 1,932,514 11,978,159 1,000,000 7,550,000 9,280,859 4,011,868 1,190,582 19,953,955 19,998,297 1,000,000 750,000 750,000 325,000 325,000 300,000 300,000 325,000 325,000 325,000 325,000 Total Project Cost 24,090,142 3,455,345 53,591,561 2,000,000 22,927,874 489,510 50,000,000 3,042,199 12,976,000 96,030,114 4,008,270 14,910,673 7,550,000 13,292,727 1,190,582 40,952,252 750,000 750,000 30 C7' ,j The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program Capital Projects Revenue Summary 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source Actuals Amended Budget Projected Projected Projected Projected Cost State/Local Grants Beyond Grant 19,857 19,857 Grants 776,598 4,133,528 120,000 5,030,126 HSIP- Highway Safety Improvement Program 3,383,790 552,850 3,936,640 MSRC-Mobile Source Air Review Committee Grant 111,574 29,426 141,000 Senate Bill 1 - Active Transportation Program 1,502,000 1,502,000 Senate Bill 621 14,446,520 160,000 14,606,520 Senate Bill 821 362,600 362,600 SHOPP - State Highway Operation & Protection Program 1,250,000 1,250,000 STIP-Surface Transportation Improvement Program 21,406,924 31,193,076 52,600,000 State/Local Grants Total 38,011,473 40,764,420 672,850 79,448,743 Transportation Uniform Mitigation Fund (TUMF) TUMF 1,438, 000 1,438,000 TUMF (CETAP/RCTC) 5,825,056 3,873,891 9,698,947 TUMF (RCTC) 7,468,562 7,468,562 TUMF (WRCOG) 23,935,200 11,620,889 35,556,089 Transportation Uniform Mitigation Fund (TUMF) Total 38,666,8181 15,494,780 54,161,598 31 Wine Country City of Temecula Fiscal Years 2026-2030 Capital Improvement Program CIP MAJOR REVENUE SOURCES Capital Project Funding Sources TUMF , 54,161,598, 9% 1 City Funds , State/Local Grants, 244,469,320, 79,448,743, 13% \ 39/ Successor Agency, 750,000, 0% J Reimbursements, 40,952,252, 6% Federal Grants , 96,030,114, 15% Development �_ Community Impact Fees, Facility Districts , 53,591,561, 9% 54,975,557, 9% PROJECTED REVENUES: $624,3793144 32 Capital Project Expenditure Summary Circulation Projects Butterfield Stage Road Storm Drain Improvements Cherry Street Extension & Murrieta Creek Crossing 618,831 De Portola Road/Jedediah Smith Road Roundabout 43,385 Diaz Road Expansion 1,502,020 Flashing Beacons & Speed Advisory Signs 296,730 French Valley Parkway/1-15 Improvements - Phase II 90,764,367 French Valley Parkway/1-15 Improvements - Phase III 3,332,565 1-15 / French Valley Parkway Improvements -Phase IV 1-15 Congestion Relief 4,233,372 I-15/State Route 79 South Ultimate Interchange 49,339,292 Medians & Parkways - Citywide 666,838 Motor Car Parkway Improvements Murrieta Creek Bridge At Overland 1,750,732 North General Kearny Street Improvements 4,785 Overland Drive Extension Commerce Center 7,982,529 Overland Drive Widening 554,817 Pavement Rehabilitation Program - Citywide 47,016,695 Rainbow Canyon Road Pavement Rehabilitation 324,515 Rancho California Road Median Improvements 48,839 Traffic Signal - Equipment Enhancement Program - Citywide 1,474,948 Traffic Signal - Installation - Citywide 1,914,517 Traffic Signal - System Upgrade 722,227 Ynez Road Improvements - Phase 1 344,850 Ynez Road Improvements - Phase 11 347,255 Circulation Total 213,284,110 Housing Protects Habitat for Humanity Old Town Units Las Haciendas Affordable Housing Project 7,947,784 Uptown Temecula Affordable Housing Site Vine Creek Affordable Housing Project Housing Total 7,947,784 11,861,900 77,641 2,159, 615 11,934,493 42,553 47,986,979 7,224,229 2,266,000 2,000,000 1,000,000 200,000 5,025,337 1,752,605 750,000 5,982,188 372,552 335,368 1,438,203 4,864,784 7,667,932 5,051,154 2,575,485 909,161 1,271,841 260,000 693,166 64,673 3,651,322 522,615 200,000 3,200,000 24,211,721 4,195,697 4,342,371 260,000 260,000 375,000 113,777,242 14,164,553 31,242,418 7,802,371 1,261,000 2,182,216 1,000,000 6,710,000 11,153,216 1,300,000 1,300,000 City of Temecula Fiscal Years 2026-30 Capital Improvement Program 1,614,478 350,000 54,750,000 181,400,000 4,492,198 4,492,200 4,500,000 260,000 300,000 9,902,198 242,256,678 11,861,900 696,472 4,469,000 17,050,991 339,284 139,751,346 69,256,794 181,400,000 9,258,710 51,091,897 666,838 750,000 31,944,641 377,337 8,317,897 6,857,804 77,258,247 2,900,000 5,458,000 3,786,788 3,282,683 786,900 4,518,787 347,255 632,429,570 1,261,000 10,130,000 2,300,000 6,710,000 20,401,000 33 fJ- �y Capital Project Expenditure Summary Infrastructure Projects American With Disabilities Act (ADA) Transition Plan Implementation 790,616 679,225 403,660 403,660 403,660 Auto Mall Wayfinding Signs 200,000 535,218 Bike Lane And Trail Program - Citywide 416,079 140,668 50,000 160,000 1,319,558 Bike Lane and Trail Program - Great Oak Trail Lighting 460,191 392,617 Bike Lane and Trail Program - RRSP Trails 96,776 905,851 Bike Lane And Trail Program - Temecula Creek South Side Trail 545,433 248,287 8,593,350 Bike Lane Upgrades - Citywide 50 274,450 Bridge Maintenance 85,418 402,742 488,160 488,160 City Facilities Rehabilitation 4,071,271 1,952,395 1,000,000 1,000,000 1,000,000 City Facility Security 95,720 154,280 25,000 City Security Camera System 3,686,969 804,815 Citywide Drainage Master Plan 561,349 247,203 43,000 Citywide Financial System Upgrade 675,213 701,505 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 7,970,759 Community Recreation Center (CRC) Renovations 5,378,487 831,387 Community Wildfire Protection Plan 216,004 161,996 Comprehensive General Plan Update 609,958 2,440,042 500,000 Electric Vehicles Charging Station 301,940 190,790 Fiber Optic Communications Systems - Citywide 120,150 87,850 Fire Station 73 Gym/Garage 563,014 252,366 4,350,300 Fire Station 84 Training Room Renovation 414,846 2,310,228 804,376 1-15/State Route 79 South Interchange Enhanced Landscaping 641,342 2,988,953 Interstate 15 Corridor Branding and Visioning Improvements 200,000 200,000 Library Alternate Emergency Operations Center Enhancements 700,000 Library Technology Enhancements 240,000 Local Roadway Safety Plan Update 155,000 Margarita Recreation Center 12,159,288 442,219 Mary Phillips Senior Center Enhancement And Renovation 2,218,995 25,694 Medians & Traffic Calming Improvements - Citywide 107,798 869,103 Murrieta Creek Improvements 708,517 2,114,084 15,000 Nicolas Road Multi -Use Trail Extension 1,500,000 Old Town Parking Structure 255,542 1,149,458 Old Town Security Camera & Sound System 1,118,986 141,014 Old Town Temecula Parklets Program 68,866 381,135 Pavement Management Program Update 120,859 254,141 City of Temecula Fiscal Years 2026-30 Capital Improvement Program 403,660 403,660 185,000 185,000 1,000,000 1,000,000 200,000 200,000 214,980 3,488,141 735,218 2,456,305 852,808 1,002,627 9,387,069 274,500 1,464,480 11,023,666 275,000 4,491,785 851,552 1,376,718 7,970,759 6,209,874 378,000 3,550,000 492,729 208,000 5,165,680 3,529,450 3,630,295 800,000 700,000 240,000 155,000 12,601,508 2,244,689 976,900 2,837,601 1,500,000 1,405,000 1,260,000 450,000 589,980 34 Capital Project Expenditure Summary Pedestrian Ramp Upgrades - Citywide Santa Gertrudis Creek Phase II - Margarita Under -Crossing Sidewalks - Citywide Sidewalks - Old Town Improvements Sidewalks - Pauba Road Sixth Street Improvements South Side Senior Center Storm Drain Pipe Lining Temecula Creek Fencing Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide Traffic Signal - Safety Lights and Signal Communications Upgrade- Citywide Traffic Signal Fiber Optic Extension Utility Undergrounding- Citywide Vacant Parcel Clean-up and Beautification Infrastructure Total Parks/Recreation Projects Children's Museum Enhancement Project Community Recreation Center Splash Pad & Shade Structures Dog Park Renovation Empire Creek Improvements Harveston Community Park Building Renovation and Expansion Infill Recreational Amenities Long Canyon Creek Park Restrooms Park Restrooms Renovations, Expansion And Americans With Disabilities Act Parks Improvement Program Pickleball Courts Playground Equipment Enhancement & Safety Surfacing Ronald Reagan Sports Park Hockey Rink Ronald Reagan Sports Park Restroom Expansion & Renovation Ronald Reagan Sports Park Skate Park Sports Court Resurfacing Sports Field Lighting - Light Emitting Diode (LED) Conversion Uptown Temecula Sports Park Vail Ranch Park Restrooms Parks/Recreation Total - 50 274,950 991,826 4,608,297 1,169,799 322,777 1,901,633 (73,049) 66,604 890,520 100,000 118,844 973,481 100,000 12,186 508,364 532,550 9,786 490,214 318,000 50 572,650 89,803 3,166,098 265,000 147,767 96,608 360,000 48,968,783 36,840, ,420,264 336,799 208,290 1,682,640 894,508 988,486 189,514 923,948 157,131 60,000 10,606 389,394 15,427 1,292,503 190,000 276,347 1,103,453 3,397,592 680,782 860,274 2,876,604 5,317,925 399,999 500,000 231,668 3,888,738 1,326,285 150,204 191,569 3,868,431 2,050,000 255,990 114,267 200,000 1,065,417 1,664,583 136,922 2,240,078 25,292 1,297,638 70,000 22,242,935 3,010,000 1,870,050 1,410,000 City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2,973,660 1hfiJ&JI 1,788,660 4,191,231 1,439,725 100,000 100,000 12,547,822 1,439,725 12,647,822A 4,291,231 1,870,050 275,000 5,600,123 1,492,575 1,828,585 1,057,124 1,092,326 100,000 4,793,200 818,000 572,700 3,255,900 1,675,000 244,375 360,000 117,740,242 545,090 2,577,147 1,178,000 5,115,179 217,131 400,000 1,497,930 1,379,800 4,078,374 3,736,878 7,657,649 4,120,406 1,476,489 6,110,000 770,257 2,730,000 14,924,822 1,392,930 59,908,080 35 Projects Funded by Community Facilities District Bonds Butterfield Stage Road Extension Nicolas Road Extension & Improvements Irojects Funded by Community Facilities District Bonds Total Capital Project Expenditure Summary 39,886,3271 1,520,702 11,784 22,172,876 39,898, City of Temecula Fiscal Years 2026-30 Capital Improvement Program 41,407,029 22,184,660 Project Type Number of Projects Total Project Cost Circulation 24 632,429,570 Housing 4 20,401,000 Infrastructure 49 117,740,242 Parks/Rec 18 59,908,080 CFD Funded 2 63,591,689 36 �-t o- 5-L- Wnc Country City of Temecula Fiscal Years 2026-2030 Capital Improvement Program EXPENDITURE SUMMARY BY PROJECT TYPE Capital Project Expenditures by Type CFD-Funded, 63,591,689 , 7% Parks/Recreation, 59,908,080 , 7% Infrastructure, 117,740,242 , 13% Housing, 20,401,000 , 2% Circulation, 632,429,570 , 71% PROJECTED EXPENDITURES: $8947070,582 37 Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost AssemblV Bill 2766 Bike Lane And Trail Program - Citywide 325,638 139,075 50,000 160,000 175,000 185,000 185,000 1,219,713 Bike Lane And Trail Program - Temecula Creek South Side Trail 67,845 0 0 0 0 0 0 67,845 Electric Vehicles Charging Station 47,000 0 0 0 0 0 0 47,000 Nicolas Road Multi -Use Trail Extension 0 450,000 0 0 0 0 0 450,000 Project Funding 440,483 589,075 50,000 160,000 175,000 185,000 185,000 1,784,558 Revenue Projection 880,226 138,814 158,789 161,964 165,204 168,508 171,878 439,743 (10,518) 98,271 100,235 90,439 73,946 60,824 Available Funding Capital Financing Margarita Recreation Center 6,405,000 0 0 0 0 0 0 6,405,000 6,405,000 0 0 0 0 0 0 6,405,000 Project Funding Revenue Projection 6,405,000 0 0 0 0 0 0 Available Funding 0 0 0 0 0 0 0 Community Facility Districts Butterfield Stage Road Extension 38,401,739 635,200 0 0 0 0 0 39,036,939 French Valley Parkway/1-15 Improvements - Phase II 1,005,840 0 0 0 0 0 0 1,005,840 I-15/State Route 79 South Ultimate Interchange 502,211 0 0 0 0 0 0 502,211 Nicolas Road Extension & Improvements 11,784 14,418,783 0 0 0 0 0 14,430,567 39,921,574 15,053,983 0 0 0 0 0 54,975,557 Project Funding Revenue Projection 58,818,177 0 0 0 0 0 0 Available Funding 18,896,603 3,842,620 3,842,620 3,842,620 3,842,620 3,842,620 3,842,620 Program Community Reinvestment Program Old Town Temecula Parklets Program 68,866 381,134 0 0 0 0 0 450,000 Sixth Street Improvements 0 115,000 0 0 0 0 0 115,000 Temecula Creek Fencing 9,786 490,214 0 0 0 0 0 500,000 Uptown Temecula Affordable Housing Site 0 1,000,000 0 0 0 0 0 1,000,000 Vacant Parcel Clean-up and Beautification 0 360,000 0 0 0 0 0 360,000 Vine Creek Affordable Housing Project 0 4,000,000 0 0 0 0 0 4,000,000 Project Funding 78,652 6,346,348 0 0 0 0 0 6,425,000 Revenue Projection 78,652 6,346,348 0 0 0 0 0 Available Funding 0 0 0 0 0 0 0 M Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Development Impact Fees (DIF) DIF - Corporate Facilities City Facilities Rehabilitation 250,000 30,000 0 0 0 0 0 280,000 City Facility Security 0 0 25,000 0 0 0 0 25,000 City Security Camera System 752,087 0 0 0 0 0 0 752,087 Dog Park Renovation 0 100,000 0 0 0 0 0 100,000 Fire Station 73 Gym/Garage 0 43,651 50,000 0 0 0 0 93,651 Fire Station 84 Training Room Renovation 0 85,000 577,131 0 0 0 0 662,131 Murrieta Creek Improvements 0 130,000 15,000 0 0 0 0 145,000 Old Town Security Camera & Sound System 548,651 51,349 0 0 0 0 0 600,000 Project Funding 1,550,738 440,000 667,131 0 0 0 0 2,657,869 Revenue Projection 2,014,936 75,000 331,107 352,453 141,410 299,398 103,522 464,198 99,198 (236,826) 115,627 257,037 556,435 659,957 Available Funding DIF - Fire Facilities Fire Station 73 Gym/Garage 102,210 25,126 0 0 0 0 0 127,336 Fire Station 84 Training Room Renovation 0 448,248 0 0 0 0 0 448,248 102,210 473,374 0 0 0 0 0 575,584 Project Funding Revenue Projection 147,294 13,000 133,581 281,498 139,491 236,771 130,961 45,084 (415,290) (281,710) (212) 139,279 376,050 507,011 Available Funding DIF - Library Library Alternate Emergency Operations Center Enhancements 0 700,000 0 0 0 0 0 700,000 Library Technology Enhancements 0 240,000 0 0 0 0 0 240,000 Project Funding 940,000 0 0 0 0 0 940,000 Revenue Projection 2,025,077 210,000 162,022 457,041 218,397 183,773 167,732 2,025,077 1,295,077 1,457,099 1,914,140 2,132,537 2,316,310 2,484,042 Available Funding W Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source Funding Source - Project Name DIF - Open Space & Trails Bike Lane And Trail Program - Citywide Bike Lane and Trail Program - RRSP Trails Nicolas Road Multi -Use Trail Extension Santa Gertrudis Creek Phase II - Margarita Under -Crossing Project Funding Revenue Projection Available Funding DIF - Parks & Recreation Children's Museum Enhancement Project Community Recreation Center (CRC) Renovations Margarita Recreation Center Pickleball Courts Playground Equipment Enhancement & Safety Surfacing Ronald Reagan Sports Park Hockey Rink Ronald Reagan Sports Park Skate Park South Side Senior Center Uptown Temecula Sports Park DIF - Police Facilities City Security Camera System Margarita Recreation Center Traffic Signal Fiber Optic Extension Project Funding Revenue Projection Available Funding Project Funding Revenue Projection Available Funding City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Actuals Amended Budget Projected Projected Projected Projected Cost 72,177 0 0 0 0 0 0 72,177 59,133 0 0 0 0 0 0 59,133 300,000 0 0 0 0 0 0 300,000 0 1,562,908 0 0 0 0 0 1,562,908 431,310 1,562,908 0 0 0 0 1,994,218 1,463,484 117,000 130,564 381,089 51,540 48,823 44,717 1,032,174 (413,734) (283,170) 97,919 149,459 198,282 242,999 145,090 0 0 0 0 0 0 145,090 1,521,208 0 0 0 0 0 0 1,521,208 600,000 0 0 0 0 0 0 600,000 256,718 1,193,282 0 0 0 0 0 1,450,000 1,040,000 0 0 0 0 0 0 1,040,000 0 1,014,974 0 0 0 0 0 1,014,974 0 0 314,624 0 0 0 0 314,624 0 0 100,000 0 0 0 0 100,000 0 0 0 2,000,000 0 0 2,000,000 3,563,016 2,208,256 414,624 0 2,000,000 0 0 8,185,896 7,069,131 400,000 447,944 1,307,422 176,826 167,502 153,418 3,506,115 1,697,859 1,731,179 3,038,601 1,215,427 1,382,929 1,536,347 1,121,113 0 0 0 0 0 0 1,121,113 111,256 25,744 0 0 0 0 0 137,000 0 0 0 649,000 0 0 0 649,000 1,232,369 25,744 0 649,000 0 0 0 1,907,113 1,464,933 35,000 189,778 304,957 59,585 123,643 55,141 232,5641 241,820 431,598 87,556 147,141 270,784 325,925 we, Heart of So�till JLLI �alifornla Capital Projects Summary - By Funding Source Funding Source - Project Name DIF - Quimby Bike Lane and Trail Program - RRSP Trails Community Recreation Center (CRC) Renovations Harveston Community Park Building Renovation and Expansion Infill Recreational Amenities Parks Improvement Program Pickleball Courts Playground Equipment Enhancement & Safety Surfacing Ronald Reagan Sports Park Hockey Rink Ronald Reagan Sports Park Skate Park Uptown Temecula Sports Park Project Funding Revenue Projection Available Funding DIF - Street Improvements De Portola Road/Jedediah Smith Road Roundabout Diaz Road Expansion French Valley Parkway/1-15 Improvements - Phase II Medians & Parkways - Citywide Medians & Traffic Calming Improvements - Citywide Murrieta Creek Bridge At Overland Overland Drive Extension Commerce Center Overland Drive Widening Rancho California Road Median Improvements Ynez Road Improvements - Phase I Ynez Road Improvements - Phase 11 Project Funding Revenue Projection Available Funding City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Actuals Amended Budget Projected Projected Projected Projected Cost 24,828 665,172 0 0 0 0 0 690,000 2,966,351 84,241 0 0 0 0 0 3,050,592 157,130 0 0 0 0 0 0 157,130 10,605 389,395 0 0 0 0 0 400,000 250,000 0 0 0 0 0 0 250,000 202,601 58,399 0 0 0 0 0 261,000 440,000 0 500,000 500,000 0 0 0 1,440,000 0 520,432 0 0 0 0 0 520,432 0 0 1,016,240 0 0 0 0 1,016,240 129,673 870,327 0 0 1,000,000 0 0 2,000,000 4,181,189 2,587,966 1,516,240 500,000 1,000,000 0 0 9,785,394 6,733,996 1,085,000 1,066,460 1,375,017 8,835 0 0 2,552,807 1,049,841 600,061 1,475,078 483,913 483,913 483,913 43,385 1,359,615 1,106,000 0 0 0 0 2,509,000 590 0 0 0 0 0 0 590 75,360 0 0 0 0 0 0 75,360 854,839 (188,001) 0 0 0 0 0 666,838 40,000 0 0 0 0 0 0 40,000 1,181,533 1,096,387 0 5,738,847 0 0 0 8,016,767 8,082,475 0 0 0 0 0 0 8,082,475 554,817 1,438,203 0 0 0 0 0 1,993,020 42,605 708,195 0 0 0 0 0 750,800 42,759 1,042,663 522,615 0 0 0 0 1,608,037 619,451 (272,196) 0 0 0 0 0 347,255 11,537,814 5,184,866 1,628,615 5,738,847 0 0 0 24,090,142 17,281,528 240,000 4,405,584 2,893,156 504,613 3,448,822 381,566 5,743,7141 798,848 3,575,817 730,126 1,234,739 4,683,561 5,065,127 41 Heart of So�t�alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost DIF - Traffic Signals Flashing Beacons & Speed Advisory Signs 81,284 0 0 0 0 0 0 81,284 Traffic Signal - Equipment Enhancement Program - Citywide 541,788 0 0 0 0 0 0 541,788 Traffic Signal - Installation - Citywide 1,299,810 262,873 0 375,000 0 300,000 0 2,237,683 Traffic Signal - Safety Lights and Signal Communications Upgrade - Citywide 0 594,590 0 0 0 0 0 594,590 Project Funding 1,922,882 857,463 0 375,000 0 300,000 0 3,455,345 Revenue Projection 2,185,304 40,000 626,330 412,528 71,793 498,399 54,012 262,422 (555,041) 71,289 108,817 180,610 379,009 433,021 Available Funding Development Impact Fee Total Project Funding 24,521,528 14,280,577 4,226,610 7,262,847 3,000,000 300,000 0 53,591,561 Development Impact Fee Total Revenue Projection 40,385,683 2,215,000 7,493,370 7,765,161 1,372,491 5,007,130 1,091,071 15,864,155 3,798,578 7,065,338 7,567,652 5,940,143 10,647,273 11,738,344 Development Impact Fee Total Available Funding Facilities Replacement Fund Bike Lane and Trail Program - Great Oak Trail Lighting City Facilities Rehabilitation 2,071,271 1,922,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,993,666 Fire Station 84 Training Room Renovation 0 800,000 0 0 0 0 0 800,000 Mary Phillips Senior Center Enhancement And Renovation 279,694 0 0 0 0 0 0 279,694 2,350,965 2,722,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 10,073,360 Project Funding Revenue Projection 4,954,082 3,313,164 2,500,000 1,250,000 1,250,000 1,250,000 1,250,000 2,603,117 3,193,886 4,693,886 4,943,886 5,193,886 5,443,886 5,693,886 Available Funding General Fund City Facilities Rehabilitation 1,750,000 0 0 0 0 0 0 1,750,000 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 2,503,311 0 0 0 0 0 0 2,503,311 Comprehensive General Plan Update 1,057,141 1,182,859 500,000 0 0 0 0 2,740,000 French Valley Parkway/1-15 Improvements - Phase II 4,236,174 0 0 0 0 0 0 4,236,174 French Valley Parkway/1-15 Improvements - Phase III 30,000 0 0 0 0 0 0 30,000 1-15 Congestion Relief 1,606,216 302,494 0 0 0 0 0 1,908,710 Murrieta Creek Improvements 135,858 0 0 0 0 0 0 135,858 Old Town Parking Structure 1,000,000 0 0 0 0 0 0 1,000,000 Overland Drive Extension Commerce Center 235,422 0 0 0 0 0 0 235,422 42 Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Parks Improvement Program 1,003,059 0 0 0 0 0 0 1,003,059 Pavement Rehabilitation Program - Citywide 5,692,614 0 0 0 0 0 0 5,692,614 Sidewalks - Citywide 375,000 0 0 0 0 0 0 375,000 Project Funding 19,624,796 1,485,352 500,000 0 0 0 0 21,610,148 Revenue Projection 19,624,796 1,485,352 500,000 0 0 0 0 0 0 0 0 0 0 0 Available Funding Grants - Federal American With Disabilities Act (ADA) Transition Plan Implementation 631,062 431,459 325,000 325,000 325,000 325,000 325,000 2,687,521 Diaz Road Expansion 0 0 0 2,000,000 0 0 0 2,000,000 French Valley Parkway/1-15 Improvements - Phase II 24,512,035 27,090,325 0 0 0 0 0 51,602,360 1-15/State Route 79 South Ultimate Interchange 13,719,567 696,272 0 0 0 0 0 14,415,839 Mary Phillips Senior Center Enhancement And Renovation 1,477,200 (419,616) 0 0 0 0 0 1,057,584 Murrieta Creek Bridge At Overland 530,421 3,924,579 18,472,874 22,927,874 Sidewalks - Old Town Improvements 849,426 0 0 0 0 0 0 849,426 Traffic Signal - System Upgrade 394,215 95,295 0 0 0 0 0 489,510 Project Funding 42,113,926 31,818,314 325,000 20,797,874 325,000 325,000 325,000 96,030,114 Revenue Projection 42,113,926 31,818,314 325,000 20,797,874 325,000 325,000 325,000 0 0 0 0 0 0 0 Available Funding Grants - State & Local Bike Lane And Trail Program - Citywide 19,857 0 0 0 0 0 0 19,857 Bike Lane Upgrades - Citywide 0 224,550 0 0 0 0 0 224,550 Community Wildfire Protection Plan 266,598 111,402 0 0 0 0 0 378,000 Comprehensive General Plan Update 310,000 500,000 0 0 0 0 0 810,000 De Portola Road/Jedediah Smith Road Roundabout 0 800,000 0 0 0 0 0 800,000 Dog Park Renovation 200,000 247,126 0 0 0 0 0 447,126 Electric Vehicles Charging Station 111,574 29,426 0 0 0 0 0 141,000 French Valley Parkway/1-15 Improvements - Phase 11 21,406,924 26,193,076 0 0 0 0 0 47,600,000 French Valley Parkway/1-15 Improvements - Phase 111 0 5,000,000 0 0 0 0 0 5,000,000 1-15 Congestion Relief 1,250,000 0 0 0 0 0 1,250,000 1-15/State Route 79 South Ultimate Interchange 14,446,520 160,000 0 0 0 0 0 14,606,520 43 Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Local Roadway Safety Plan Update 0 0 120,000 0 0 0 0 120,000 Pedestrian Ramp Upgrades - Citywide 0 225,000 0 0 0 0 0 225,000 Santa Gertrudis Creek Phase II - Margarita Under -Crossing 0 1,502,000 0 0 0 0 0 1,502,000 Sidewalks - Pauba Road 0 362,600 0 0 0 0 0 362,600 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 0 492,930 0 0 0 0 0 492,930 Traffic Signal - Safety Lights and Signal Communications Upgrade - Citywide 0 2,441,310 0 0 0 0 0 2,441,310 Traffic Signal Fiber Optic Extension 0 552,850 0 0 0 0 552,850 Ynez Road Improvements - Phase 1 0 2,475,000 0 0 0 0 0 2,475,000 Project Funding 38,011,474 40,764,420 672,850 0 0 0 0 79,448,743 Revenue Projection 38,011,474 40,764,419 672,850 0 0 0 0 0 0 0 0 0 0 0 Available Funding Housing French Valley Parkway/1-15 Improvements - Phase 111 1,669,794 0 0 0 0 0 0 1,669,794 Habitat for Humanity Old Town Units 0 1,261,000 0 0 0 0 0 1,261,000 Las Haciendas Affordable Housing Project 71947,784 1,681,359 0 0 0 0 0 9,629,143 Uptown Temecula Affordable Housing Site 0 0 0 1,300,000 0 0 0 1,300,000 Vine Creek Affordable Housing Project 0 2,710,000 0 0 0 0 0 2,710,000 Project Funding 9,617,578 5,652,359 0 1,300,000 0 0 0 16,569,937 Revenue Projection 9,617,578 5,652,359 0 1,300,000 0 0 0 Available Funding 0 0 0 0 0 0 0 44 Heart of So�t�alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Measure A Bridge Maintenance 85,418 402,742 488,160 0 488,160 0 0 1,464,480 De Portola Road/Jedediah Smith Road Roundabout 0 0 1,160,000 0 0 0 0 1,160,000 Diaz Road Expansion 296,048 5,636,499 0 0 0 0 0 5,932,547 French Valley Parkway/1-15 Improvements - Phase II 1,627,914 0 0 0 0 0 0 1,627,914 Nicolas Road Multi -Use Trail Extension 0 600,000 0 0 0 0 0 600,000 Pavement Rehabilitation Program - Citywide 23,899,099 1,751,627 1,224,000 1,312,000 1,401,000 1,492,000 1,492,000 32,571,726 Sidewalks - Old Town Improvements 140,000 0 0 0 0 0 0 140,000 Project Funding 26,048,478 8,390,869 2,872,160 1,312,000 1,889,160 1,492,000 1,492,000 43,496,667 Revenue Projection 31,132,539 5,818,512 1,138,000 1,224,000 1,312,000 1,401,000 1,492,000 5,084,061 2,511,704 777,544 689,544 112,384 21,384 21,384 Available Funding Measure S American With Disabilities Act (ADA) Transition Plan Implementation 83,093 324,227 78,660 78,660 78,660 78,660 78,660 800,620 Auto Mall Wayfinding Signs 0 200,000 535,218 0 0 0 0 735,218 Bike Lane and Trail Program - Great Oak Trail Lighting 0 352,808 0 0 0 0 0 352,808 Bike Lane and Trail Program - RRSP Trails 12,815 240,679 0 0 0 0 253,494 Bike Lane And Trail Program - Temecula Creek South Side Trail 477,587 248,287 0 0 0 0 0 725,874 Bike Lane Upgrades - Citywide 50 49,900 0 0 0 0 0 49,950 Cherry Street Extension & Murrieta Creek Crossing 618,831 77,641 0 0 0 0 0 696,472 Children's Museum Enhancement Project 400,000 0 0 0 0 0 0 400,000 City Facility Security 100,000 150,000 0 0 0 0 0 250,000 City Security Camera System 2,164,091 454,494 0 0 0 0 0 2,618,585 Citywide Drainage Master Plan 482,200 326,353 43,000 0 0 0 0 851,553 Citywide Financial System Upgrade 613,184 0 0 0 0 0 0 613,184 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit 5,500,000 (32,553) 0 0 0 0 0 5,467,447 Community Recreation Center (CRC) Renovations 863,166 774,908 0 0 0 0 0 1,638,074 Community Recreation Center Splash Pad & Shade Structures 1,682,639 894,508 0 0 0 0 0 2,577,147 Diaz Road Expansion 171,445 600,931 0 0 0 0 0 772,376 Dog Park Renovation 541,360 89,514 0 0 0 0 0 630,874 Empire Creek Improvements 01 923,949 0 0 0 0 0 923,949 45 Heart of So�t�alifornla Capital Projects Summary - By Funding Source Funding Source - Project Name Prior Years Actuals Fiber Optic Communications Systems - Citywide 120,150 Fire Station 73 Gym/Garage 460,804 Fire Station 84 Training Room Renovation 709,861 Flashing Beacons & Speed Advisory Signs 215,446 French Valley Parkway/1-15 Improvements - Phase II 5,561,573 French Valley Parkway/1-15 Improvements - Phase III 166,184 1-15/State Route 79 South Interchange Enhanced Landscaping 509,989 Interstate 15 Corridor Branding and Visioning Improvements 0 Local Roadway Safety Plan Update 0 Long Canyon Creek Park Restrooms 15,427 Margarita Recreation Center 5,043,032 Mary Phillips Senior Center Enhancement And Renovation 952,411 Medians & Traffic Calming Improvements - Citywide 231,900 Murrieta Creek Bridge At Overland 120,666 Murrieta Creek Improvements 53,791 Nicolas Road Multi -Use Trail Extension 0 North General Kearny Street Improvements 4,785 Old Town Parking Structure 0 Old Town Security Camera & Sound System 570,335 Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements 347,800 Parks Improvement Program 2,041,218 Pavement Management Program Update 0 Pavement Rehabilitation Program - Citywide 2,000,000 Pedestrian Ramp Upgrades - Citywide 50 Pickleball Courts 400,955 Playground Equipment Enhancement & Safety Surfacing 3,837,924 Rainbow Canyon Road Pavement Rehabilitation 0 Rancho California Road Median Improvements 6,234 Ronald Reagan Sports Park Hockey Rink 231,668 Ronald Reagan Sports Park Restroom Expansion & Renovation 1,326,285 Ronald Reagan Sports Park Skate Park 191,570 Santa Gertrudis Creek Phase 11 - Margarita Under -Crossing 776,839 City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2024-25 Amended 2025-26 Proposed Budget 2026-27 Projected 2027-28 Projected 2028-29 Projected 2029-30 Projected Total Project Cost 87,850 0 0 0 0 0 208,000 183,589 4,300,300 0 0 0 0 4,944,693 681,965 227,245 0 0 0 0 1,619,071 42,554 0 0 0 0 0 258,000 469,762 0 0 0 0 0 6,031,335 525,633 200,000 200,000 200,000 0 0 1,291,817 620,306 0 0 0 0 0 1,130,295 200,000 0 0 0 0 0 200,000 0 35,000 0 0 0 0 35,000 1,292,503 190,000 0 0 0 0 1,497,930 416,476 0 0 0 0 0 5,459,508 (45,000) 0 0 0 0 0 907,411 680,000 0 0 0 0 0 911,900 879,334 0 0 0 0 0 1,000,000 1,386,867 0 0 0 0 0 1,440,658 150,000 0 0 0 0 0 150,000 372,552 0 0 0 0 0 377,337 405,000 0 0 0 0 0 405,000 89,665 0 0 0 0 0 660,000 1,032,000 0 0 0 0 0 1,379,800 398,782 0 0 0 0 0 2,440,000 85,020 0 0 0 0 100,000 185,020 0 1,000,000 0 0 0 0 3,000,000 49,950 0 0 0 0 0 50,000 1,624,923 0 0 0 0 0 2,025,878 400,000 0 939,725 0 0 0 5,177,649 350,000 0 0 0 0 0 350,000 143,766 0 0 0 0 0 150,000 1,853,332 0 0 0 0 0 2,085,000 145,914 0 0 0 0 0 1,472,199 3,868,430 719,136 0 0 0 0 4,779,136 1,758,376 0 0 0 0 0 2,535,215 Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Sidewalks - Citywide 774,922 342,653 0 0 0 0 0 1,117,575 Sidewalks - Old Town Improvements 1,138,877 (299,719) 0 0 0 0 0 839,159 Sidewalks - Pauba Road 65,316 529,208 100,000 0 0 0 0 694,524 Sixth Street Improvements 142,486 834,839 0 0 0 0 0 977,326 Sports Court Resurfacing 255,990 114,267 200,000 0 100,000 100,000 0 770,257 Sports Field Lighting - Light Emitting Diode (LED) Conversion 1,065,417 1,364,583 0 0 0 0 0 2,430,000 Storm Drain Pipe Lining 12,186 508,364 532,550 0 1,870,050 0 1,870,050 4,793,200 Temecula Creek Fencing 0 0 318,000 0 0 0 0 318,000 Traffic Signal - Equipment Enhancement Program - Citywide 933,160 1,271,840 260,000 260,000 260,000 260,000 0 3,245,000 Traffic Signal - Installation - Citywide 236,242 558,758 0 0 0 0 0 795,000 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 50 79,720 0 0 0 0 0 79,770 Traffic Signal - Safety Lights and Signal Communications Upgrade - Citywide 0 220,000 0 0 0 0 0 220,000 Traffic Signal - System Upgrade 297,390 0 0 0 0 0 0 297,390 Traffic Signal Fiber Optic Extension 0 265,000 0 208,150 0 0 0 473,150 Uptown Temecula Sports Park 7,249 1,369,751 0 0 0 0 0 1,377,000 Utility Undergrounding - Citywide 244,375 0 0 0 0 0 0 244,375 Vail Ranch Park Restrooms 25,292 1,297,638 70,000 0 0 0 0 1,392,930 44,806,310 34,282,099 8,809,109 1,686,535 2,508,710 438,660 2,048,710 94,580,132 Project Funding Revenue Projection 46,806,310 34,282,099 8,809,109 1,686,535 2,508,710 438,660 2,048,710 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Available Funding Public Art Fund Project Funding Revenue Projection 167,257 700 1,850 2,400 2,350 650 0 167,257 167,957 169,807 172,207 174,557 175,207 175,207 Available Funding WA Heart of So�t�alifornla City of Temecula Fiscal Years 2026-30 Capital Improvement Program Capital Projects Summary - By Funding Source 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Reimbursements/Other Butterfield Stage Road Extension Butterfield Stage Road Storm Drain Improvements Community Recreation Center (CRC) Renovations Electric Vehicles Charging Station French Valley Parkway/1-15 Improvements - Phase II French Valley Parkway/1-15 Improvements - Phase III Harveston Community Park Building Renovation and Expansion 1-15 Congestion Relief 1-15/State Route 79 South Interchange Enhanced Landscaping 1-15/State Route 79 South Ultimate Interchange Medians & Traffic Calming Improvements - Citywide Motor Car Parkway Improvements Murrieta Creek Improvements Nicolas Road Extension & Improvements Parks Improvement Program Pavement Rehabilitation Program - Citywide Rainbow Canyon Road Pavement Rehabilitation Rancho California Road Median Improvements Ronald Reagan Sports Park Hockey Rink Ronald Reagan Sports Park Restroom Expansion & Renovation Traffic Signal - Installation - Citywide Ynez Road Improvements - Phase I Project Funding Revenue Projection Available Funding 932,090 0 0 0 0 0 0 932,090 0 11,861,900 0 0 0 0 0 11,861,900 0 0 0 0 0 0 0 0 0 5,800 0 0 0 0 0 5,800 6,023,250 0 1,000,000 0 0 0 0 7,023,250 165,183 0 0 0 0 0 0 165,183 1,250,000 -1,190,000 0 0 0 0 0 60,000 2,600,000 0 0 0 0 0 0 2,600,000 2,500,000 0 0 0 0 0 0 2,500,000 1,929,774 694,068 0 0 0 0 0 2,623,842 0 25,000 0 0 0 0 0 25,000 0 750,000 0 0 0 0 0 750,000 911,085 5,000 0 0 0 0 0 916,085 0 7,754,093 0 0 0 0 0 7,754,093 103,315 282,000 0 0 0 0 0 385,315 302,454 0 0 0 0 0 0 302,454 21550,000 0 0 0 0 0 0 2,550,000 0 57,200 0 0 0 0 0 57,200 0 500,000 0 0 0 0 0 500,000 4,290 0 0 0 0 0 0 4,290 246,764 3,236 0 0 0 0 0 250,000 435,750 0 0 0 0 0 0 435,750 19,953,955 20,748,297 1,000,000 0 0 0 0 41,702,252 19,953,955 20,748,297 1,000,000 0 0 0 0 0 0 0 0 0 0 0 W Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost SB1/Road Maintenance and Rehabilitation Account (RMRA) Pavement Management Program Update 120,859 169,121 0 0 0 0 114,980 404,960 Pavement Rehabilitation Program - Citywide 11,509,528 5,929,305 2,827,154 2,883,697 2,941,371 3,000,198 3,000,200 32,091,453 11,630,387 6,098,426 2,827,154 2,883,697 2,941,371 3,000,198 3,115,180 32,496,413 Project Funding Revenue Projection 15,439,313 2,907,946 2,995,184 3,085,040 3,177,591 3,272,919 3,371,106 3,808,926 618,446 786,476 987,819 1,224,040 1,496,760 1,752,687 Available Funding Service Level C - Zone 28 Bike Lane and Trail Program - Great Oak Trail Lighting 460,191 39,809 0 0 0 0 0 500,000 460,191 39,809 0 0 0 0 0 500,000 Project Funding Revenue Projection 460,191 39,809 0 0 0 0 0 Available Funding 0 0 0 0 0 0 0 Street Maintenance Fund Overland Drive Widening 0 2,937,307 1,927,477 0 0 0 0 4,864,784 Pavement Rehabilitation Program - Citywide 3,600,000 0 0 0 0 0 0 3,600,000 3,600,000 2,937,307 1,927,477 0 0 0 0 8,464,784 Project Funding Revenue Projection 9,766,190 2,234,728 0 0 0 0 0 Available Funding 6,166,190 5,463,611 3,536,134 3,536,134 3,536,134 3,536,134 3,536,134 TEAM Fund Electric Vehicles Charging Station 188,277 110,652 0 0 0 0 0 298,929 Murrieta Creek Improvements 59,801 140,199 0 0 0 0 0 200,000 Sports Field Lighting - Light Emitting Diode (LED) Conversion 0 300,000 0 0 0 0 0 300,000 248,077 550,852 0 0 0 0 0 798,929 Project Funding Revenue Projection 882,480 20,552 0 0 0 0 0 Available Funding 634,403 104,103 104,103 104,103 104,103 104,103 104,103 Technology Replacement Fund Replacement Fund Citywide Financial System Upgrade 62,028 701,506 0 0 0 0 0 763,534 Project Funding 62,028 701,506 0 0 0 0 0 763,534 Revenue Projection 2,942,776 0 0 0 0 0 0 Available Funding 2,880,748 2,179,242 2,179,242 2,179,242 2,179,242 2,179,242 2,179,242 W Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Transporation Uniform Uniform Mitigation Fee (TUMF)Fee (TUMF) Butterfield Stage Road Extension 1,438,000 0 0 0 0 0 0 1,438,000 Diaz Road Expansion 1,065,923 5,665,077 0 0 0 0 0 6,731,000 French Valley Parkway/1-15 Improvements - Phase II 19,489,986 1,059,127 0 0 0 0 0 20,549,113 French Valley Parkway/1-15 Improvements - Phase III 1,301,405 1,698,595 0 0 0 0 0 3,000,000 1-15 Congestion Relief 0 3,500,000 0 0 0 0 0 3,500,000 1-15/State Route 79 South Ultimate Interchange 15,371,504 3,571,981 0 0 0 0 0 18,943,485 Project Funding 38,666,818 15,494,780 0 0 0 0 0 54,161,598 Revenue Projection 38,666,818 15,494,780 0 0 0 0 0 0 0 0 0 0 0 0 Available Funding Uptown Temecula New Streets In Lieu Fee Las Haciendas Affordable Housing Project 0 500,857 0 0 0 0 0 500,857 Project Funding 0 500,857 0 0 0 0 0 500,857 Revenue Projection 1,391,118 45,142 0 0 0 0 0 Available Funding 1,391,118 935,403 935,403 935,403 935,403 935,403 935,403 Grand Total Project Funding 328,562,221 208,457,621 24,210,360 36,402,953 11,839,241 6,740,858 8,165,890 624,379,144 Grand Total Revenue Projection 388,498,542 173,326,335 25,594,152 37,272,974 10,113,345 11,863,866 9,749,765 Grand Total Available Funding 59,936,321 24,805,035 50 Heart of So�till JiLL] �alifornla Capital Projects Summary - By Funding Source City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Funding Source - Project Name Actuals Amended Budget Projected Projected Projected Projected Cost Unspecified Bike Lane And Trail Program - Citywide 0 0 0 0 1,144,558 0 0 1,144,558 Bike Lane And Trail Program - Temecula Creek South Side Trail 0 0 0 0 8,593,350 0 0 8,593,350 Diaz Road Expansion 0 0 0 0 0 0 1,614,478 1,614,478 Empire Creek Improvements 0 0 0 0 0 4,191,230 0 4,191,230 French Valley Parkway/1-15 Improvements - Phase III 0 0 0 0 0 350,000 57,750,000 58,100,000 1-15 / French Valley Parkway Improvements -Phase IV 0 0 0 0 0 0 181,400,000 181,400,000 Interstate 15 Corridor Branding and Visioning Improvements 0 0 0 200,000 200,000 200,000 600,000 Rancho California Road Median Improvements 0 0 0 0 0 4,500,000 0 4,500,000 Uptown Temecula Sports Park 0 0 0 0 9,547,822 0 0 9,547,822 Project Funding 0 0 0 0 19,485,730 9,241,230 240,964,478 269,691,438 Revenue Projection 0 0 0 0 0 0 0 Available Funding 0 0 0 0 (19,485,730) (28,726,960) (269,691,438) Grand Total Project Funding 328,562,221 208,457,621 24,210,360 36,402,953 31,324,971 15,982,088 249,130,368 894,070,582 Grand Total Revenue Projection 388,498,542 173,326,335 25,594,152 37,272,974 10,113,345 11,863,866 9,749,765 59,936,321 24,805,035 26,188,827 27,058,848 5,847,222 1,729,001 (237,651,602) Grand Total Available Funding 51 (�Th. _�_ City of Temecula Fiscal Years 2026-30 Heartof Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project 2025-26 Total Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Project Capital Project Name Funding Source Actuals Amended Budget Projected Projected Projected Projected Cost CIRCULATION PROJECTS Butterfield Stage Road Storm Drain Improvements County AD 159 4,008,270 4,008,270 Developer Contribution 4,853,630 4,853,630 Reimbursements 3,000,000 3,000,000 11,861,900 Total 11,861,900 Cherry Street Extension & Murrieta Creek Crossing Measure S 618,831 77,641 696,472 De Portola Road/Jedediah Smith Road Roundabout DIF-Street Improvements 43,385 1,359,615 1,106,000 2,509,000 Grants 800,000 800,000 Measure A 1,160,000 1,160,000 2,159,615 2,266,000 4,469,000 Total 43,385 Diaz Road Expansion DIF-Street Improvements 590 590 Grants 2,000,000 2,000,000 Measure A 296,048 5,636,499 5,932,547 Measure S 171,445 600,931 772,376 6 TUMF (WRCOG) 1,065,923 5,665,077 6,731,000 1 U n specifi ed 1,614,478 1,614,478 11,902,507 2,000,000 1,614,478 17,050,991 Total 1,534,006 Flashing Beacons & Speed Advisory Signs DIF-Traffic Signals 81,284 81,284 Measure S 215,446 42,554 258,000 42,554 339,284 Total 296,730 French Valley Parkway/1-15 Improvements - Phase 11 CFD 01-02 (Harveston) 1,005,840 1,005,840 Developer Contribution 1,000,000 1,000,000 DIF-Street Improvements 75,360 75,360 General Fund 4,236,174 4,236,174 INFRA Grant 24,512,035 25,487,965 50,000,000 Measure A 1,627,914 1,627,914 Measure S 5,561,573 469,762 6,031,335 Reimbursements 6,023,250 6,023,250 SAFETEA-LU 1,602,360 1,602,360 Program 21,406,924 26,193,076 47,600,000 TUMF (CETAP/RCTC) 472,841 326,106 798,947 TUMF (RCTC) 3,016,562 3,016,562 TUMF (WRCOG) 16,000,583 733,021 16,733,604 54,812,290 1,000,000 139,751,346 Total 83,939,056 52 �_�_ City of Temecula Fiscal Years 2026-30 The Heart of Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project French Valley Parkway/1-15 Improvements - Phase III Affordable Housing 1,669,794 1,669,794 General Fund 30,000 30,000 Measure S 166,184 525,633 200,000 200,000 200,000 1,291,817 Reimbursements 165,183 165,183 Program 5,000,000 5,000,000 TUMF (WRCOG) 1,301,405 1,698,595 3,000,000 Unspecified 350,000 57,750,000 58,100,000 7,224,228 200,000 200,000 200,000 350,000 57,750,000 69,256,794 Total 3,332,566 1-15 / French Valley Parkway Improvements - Phase IV Unspecified 181,400,000 181,400,000 1-15 Congestion Relief General Fund 1,606,216 302,494 1,908,710 Reimbursement-Pechanga IGA 2,500,000 2,500,000 Reimbursements 100,000 100,000 SHOPP 1,250,000 1,250,000 TUMF (CETAP/RCTC) 3,500,000 3,500,000 3,802,494 9,258,710 Total 5,456,216 1-15/State Route 79 South Ultimate Interchange CFD 03-01 (Crowne Hill) 502,211 502,211 Reimbursements 739,192 694,068 1,433,260 Reimbursements/Other 1,190,582 1,190,582 SAFETEA-LU 1,439,839 1,439,839 Senate Bill 621 14,446,520 160,000 14,606,520 STP (RCTC) 12,279,728 696,272 12,976,000 TUMF (CETAP/RCTC) 5,352,215 47,785 5,400,000 TUMF (RCTC) 4,452,000 4,452,000 TUMF (WRCOG) 5,567,289 3,524,196 9,091,485 5,122,321 51,091,897 Total 45,969,577 Medians & Parkways - Citywide DIF-Street Improvements 854,839 (188,001) 666,838 Motor Car Parkway Improvements RPTTF-Redevelopment Property Tax Trust Fund 750,000 750,000 Murrieta Creek Bridge At Overland DIF-Street Improvements 1,181,533 1,096,387 5,738,847 8,016,767 HBP-Highway Bridge Program 530,421 3,924,579 18,472,874 22,927,874 Measure S 120,666 879,334 1,000,000 5,900,300 24,211,721 31,944,641 Total 1,832,620 North General Kearny Street Improvements Measure S 4,785 372,552 III 377,337 Overland Drive Extension Commerce Center DIF-Street Improvements 8,082,475 8,082,475 General Fund 235,422 235,422 8,317,897 Total 8,317,8971 53 �_�_ City of Temecula Fiscal Years 2026-30 The Heart of Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project Overland Drive Widening DIF-Street Improvements 554,817 1,438,203 1,993,020 Street Maintenance Fund 2,937,307 1,927,477 4,864,784 4,375,510 1,927,477 6,857,804 Total 554,817 Pavement Rehabilitation Program - Citywide Gas Tax 1,200,000 1,200,000 General Fund 5,692,614 5,692,614 Measure A 23,899,099 1,751,627 1,224,000 1,312,000 1,401,000 1,492,000 1,492,000 32,571,726 Measure S 2,000,000 1,000,000 3,000,000 Reimbursements 302,454 302,454 RMRA 10,309,528 5,929,305 2,827,154 2,883,697 2,941,371 3,000,198 3,000,200 30,891,453 Street Maintenance Fund 3,600,000 3,600,000 7,680,932 5,051,154 4,195,697 4,342,371 4,492,198 4,492,200 77,258,247 Total 47,003,695 Rainbow Canyon Road Pavement Rehabilitation Measure S 350,000 350,000 Reimbursement-Pechanga IGA 2,550,000 2,550,000 Total 2,550,000 350,000 57,200 2,900,000 57,200 Rancho California Road Median Improvements Developer Contribution DIF-Streetlmprovements 42,605 708,195 750,800 Measure S 6,234 143,766 150,000 Unspecified 4,500,000 4,500,000 909,161 4,500,000 5,458,000 Total 48,839 Traffic Signal - Equipment Enhancement Program Citywide DIF-Traffic Signals 541,788 541,788 Measure S 933,160 1,271,840 260,000 260,000 260,000 260,000 3,245,000 1,271,840 260,000 260,000 260,000 260,000 3,786,788 Total 1,474,948 Traffic Signal - Installation - Citywide Developer Contribution 246,764 3,236 250,000 DIF-Traffic Signals 1,299,810 262,873 375,000 300,000 2,237,683 Measure S 236,242 558,758 795,000 824,867 375,000 300,000 3,282,683 Total 1,782,816 Traffic Signal - System Upgrade HSIP-Highway Safety Improvement Program 394,215 95,295 489,510 Measure S 297,390 297,390 95,295 786,900 Total 691,605 Ynez Road Improvements - Phase I Developer Contribution 435,750 435,750 DIF-Streetlmprovements 42,759 1,042,663 522,615 1,608,037 Grants 2,475,000 2,475,000 3,517,663 522,615 4,518,787 Total 478,509 Ynez Road Improvements- Phase II DIF-Street Improvements 619,451 (272,196) 347,255 TOTAL• • :O 54 �_�_ City of Temecula Fiscal Years 2026-30 The Heart of Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project 9=111W AdUSING PROJECT .111 Habitat for Humanity Old Town Units Affordable Housing Contribution of Land Total 700,000 561,000 700,000 561,000 1,261,000 1,261,000 Las Haciendas Affordable Housing Project Affordable Housing 7,947,784 Uptown Temecula New Streets In Lieu Fee Total 7,947,784 1,681,359 500,857 -::: 9,629,143 500,857 2,182,216 1,000,000 1,300,000 10,130,000 1,000,000 1,300,000 Uptown Temecula Affordable Housing Site Community Reinvestment Program Contribution of Land Total 1,000,000 1,300,000 2,300,000 Vine Creek Affordable Housing Project Affordable Housing Community Reinvestment Program Total 2,710,000 4,000,000 2,710,000 4,000,000 6,710,000 6,710,000 INFRASTRUCTURE PROJECTS American With Disabilities Act (ADA) Transition Plan Implementation CDBG 631,062 431,459 325,000 325,000 325,000 325,000 325,000 2,687,521 Measure S 83,093 324,227 78,660 78,660 78,660 78,660 78,660 800,620 755,687 403,660 403,660 403,660 403,660 403,660 3,488,141 Total 714,154 Auto Mall Wayfinding Signs Measure S 200,000 535,218 735,218 Bike Lane And Trail Program - Citywide Assembly Bill 2766 325,638 139,075 50,000 160,000 175,000 185,000 185,000 1,219,713 Beyond Grant 19,857 19,857 DIF-Open Space & Trails 72,177 72,177 Unspecified 1,144,558 1,144,558 139,075 50,000 160,000 1,319,558 185,000 185,000 2,456,305 Total 417,672 Bike Lane and Trail Program - Great Oak Trail Lighting Measure S 352,808 352,808 Service Level C - Zone 28 460,191 39,809 500,000 Total 460,191 392,617 852,808 Bike Lane and Trail Program - RRSP Trails DIF-Open Space & Trails 59,133 59,133 DIF-Quimby 24,828 665,172 690,000 Measure S 12,815 240,679 253,494 905,851 1,002,627 Total 96,776 Bike Lane And Trail Program - Temecula Creek South Side Trail Assembly Bill 2766 67,845 67,845 Measure S 477,587 248,287 725,874 Unspecified 8,593,350 81593,350 248,287 8,593,350 9,387,069 Total 545,4321 55 AOk �_�_ City of Temecula Fiscal Years 2026-30 The Heart of Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project Bike Lane Upgrades - Citywide HSIP-Highway Safety Improvement Program 224,550 224,550 Measure S 50 49,900 49,950 274,450 Total 50 274,500 Bridge Maintenance Measure A 85,418 402,742 488,160 488,160 1,464,480 City Facilities Rehabilitation DIF-Corporate Facilities 250,000 30,000 280,000 Facilities Replacement Fund 2,071,271 1,922,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,993,666 General Fund 1,750,000 1,750,000 1,952,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 11,023,666 Total 4,071,271 City Facility Security DIF-Corporate Facilities 25,000 25,000 Measure S 100,000 150,000 250,000 150,000 25,000 275,000 Total 100,000 City Security Camera System DIF-Corporate Facilities 752,087 752,087 DIF-Police Facilities 1,121,113 1,121,113 Measure S 2,164,091 454,494 2,618,585 454,494 4,491,785 Total 4,037,291 Citywide Drainage Master Plan Measure S 482,200 326,353 43,000 851,553 Citywide Financial System Upgrade Measure S 613,184 613,184 Technology Replacement Fund 62,028 701,506 763,534 701,506 1,376,718 Total 675,212 Citywide Streetlight Acquisition & Light Emitting Diode (LED) Retrofit General Fund 2,503,311 2,503,311 Measure S It 5,500,000 (32,553) 5,467,447 (32,553) 7,970,758 Total 8,003,311 Community Recreation Center (CRC) Renovations DIF-Park & Rec Improvements 1,521,208 1,521,208 DIF-Quimby 2,966,351 84,241 3,050,592 Measure S 863,166 774,908 1,638,074 859,149 6,209,874 Total 5,350,725 Community Wildfire Protection Plan Grants 266,598 111,402 378,000 Comprehensive General Plan Update General Fund 1,057,141 1,182,859 500,000 777 2,740,000 Grants 310,000 500,000 810,000 1,682,859 500,000 3,550,000 Total 1,367,141 Electric Vehicles Charging Station Assembly Bill 2766 47,000 47,000 Grant 111,574 29,426 141,000 Reimbursements 5,800 5,800 TEAM 188,277 110,652 298,929 145,878 492,729 Total 346,851 Fiber Optic Communications Systems - Citywide Measure S 120,150 87,850 208,000 56 �_�_ City of Temecula Fiscal Years 2026-30 The Heart of Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project Fire Station 73 Gym/Garage DIF-Corporate Facilities 43,651 50,000 93,651 DIF-Fire Protection Facilities 102,210 25,126 127,336 Measure S 460,804 183,589 4,300,300 4,944,693 252,366 4,350,300 5,165,680 Total 563,014 Fire Station 84 Training Room Renovation DIF-Corporate Facilities 85,000 577,131 662,131 DIF-Fire Protection Facilities 448,248 448,248 Facilities Replacement Fund 800,000 800,000 Measure S 709,861 681,965 227,245 1,619,071 2,015,213 804,376 3,529,450 Total 709,861 I-15/State Route 79 South Interchange Enhanced Landscaping Measure S 509,989 620,306 1,130,295 Reimbursement-Pechanga IGA 2,500,000 2,500,000 620,306 3,630,295 Total 3,009,989 Interstate 15 Corridor Branding and Visioning Improvements Measure S 200,000 200,000 Unspecified 200,000 200,000 200,000 600,000 200,000 200,000 200,000 200,000 800,000 Total Library Alternate Emergency Operations Center Enhancements DIF-Library Facilities 700,000 700,000 Library Technology Enhancements DIF-Library Facilities 240,000 240,000 Local Roadway Safety Plan Update Grants 120,000 120,000 Measure S 35,000 35,000 155,000 155,000 6,405,000 Total Margarita Recreation Center Capital Financing 6,405,000 DIF-Park & Rec Improvements 600,000 600,000 DIF-Police Facilities 111,256 25,744 137,000 Measure S 5,043,032 416,476 5,459,508 442,220 12,601,508 Total 12,159,288 Mary Phillips Senior Center Enhancement And Renovation CDBG 1,477,200 (419,616) 1,057,584 Facilities Replacement Fund 279,694 279,694 Measure S 952,411 (45,000) 907,411 (464,616) 2,244,689 Total 2,709,305 Medians & Traffic Calming Improvements - Citywide DIF-Street Improvements 40,000 40,000 Measure S 231,900 680,000 911,900 Reimbursements 25,000 25,000 705,000 976,900 Total 271,9001 57 �_�_ City of Temecula Fiscal Years 2026-30 The Heart of Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project Murrieta Creek Improvements DIF-Corporate Facilities 130,000 15,000 145,000 General Fund 135,858 135,858 Measure S 53,791 1,386,867 1,440,658 Reimbursements 911,085 5,000 916,085 TEAM 59,801 140,199 200,000 1,662,066 15,000 2,837,601 Total 1,160,535 Nicolas Road Multi -Use Trail Extension Assembly Bill 2766 450,000 450,000 DIF-Open Space & Trails 300,000 300,000 Measure A 600,000 600,000 Measure S 150,000 150,000 1,200,000 1,500,000 Total 300,000 Old Town Parking Structure General Fund 1,000,000 1,000,000 Measure S 405,000 405,000 405,000 1,405,000 Total 1,000,000 Old Town Security Camera & Sound System DIF-Corporate Facilities 548,651 51,349 600,000 Measure S 570,335 89,665 660,000 141,014 1,260,000 Total 1,118,986 Old Town Temecula Parklets Program Community Reinvestment Program 68,866 381,134 450,000 Pavement Management Program Update Measure S 85,020 100,000 185,020 RMRA 120,859 169,121 114,980 404,960 254,141 214,980 589,980 Total 120,859 Pedestrian Ramp Upgrades - Citywide HSIP-Highway Safety Improvement Program 225,000 225,000 Measure S 50 49,950 50,000 274,950 275,000 Total 50 Santa Gertrudis Creek Phase II - Margarita Under - Crossing DIF-Open Space & Trails 1,562,908 1,562,908 Measure S 776,839 1,758,376 2,535,215 Senate Bill 1 1,502,000 1,502,000 4,823,284 5,600,123 Total 776,839 Sidewalks - Citywide General Fund 375,000 375,000 Measure S 774,922 342,653 1,117,575 342,653 1,492,575 Total 1,149,922 Sidewalks - Old Town Improvements CDBG 849,426 849,426 Measure A 140,000 140,000 Measure S 1,138,877 (299,719) 839,159 (299,719) 1,828,585 Total 2,128,303 Sidewalks- Pauba Road Measure S 65,316 529,208 100,000 694,524 Senate Bill 821 362,600 362,600 891,808 100,000 1,057,124 Total 65,316 58 �_�_ City of Temecula Fiscal Years 2026-30 The Heart of Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project Sixth Street Improvements Community Reinvestment Program Measure S Total 142,486 142,486 115,000 834,839 115,000 977,326 949,839 1,092,326 South Side Senior Center DIF-Park & Rec Improvements M 100,000 100,000 Storm Drain Pipe Lining Measure S 12,186 508,364 532,550 1,870,050 1,870,050 4,793,200 Temecula Creek Fencing Community Reinvestment Program Measure S Total 9,786 9,786 490,214 318,000 500,000 318,000 490,214 318,000 818,000 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide HSIP-Highway Safety Improvement Program Measure S Total 50 50 492,930 79,720 492,930 79,770 572,650 572,700 Traffic Signal - Safety Lights and Signal Communications Upgrade- Citywide DIF-Traffic Signals HSIP-Highway Safety Improvement Program Measure S Total 594,590 2,441,310 220,000 594,590 2,441,310 220,000 3,255,900 3,255,900 Traffic Signal Fiber Optic Extension DIF-Police Facilities HSIP-Highway Safety Improvement Program Measure S Total 265,000 552,850 649,000 208,150 649,000 552,850 473,150 265,000 552,850 857,150 1,675,000 Utility Undergrounding- Citywide Measure 244,375 244,375 Vacant Parcel Clean-up and Beautification Community Reinvestment Program 360,000 360,000 TOTAL• - PARKS/RECREATION PROJECTS Children's Museum Enhancement Project DIF-Park & Rec Improvements 145,090 145,090 Measure S 400,000 400,000 545,090 Total 545,090 Community Recreation Center Splash Pad & Shade Structures Measure S 1,682,639 894,508 2,577,147 Dog Park Renovation DIF-Corporate Facilities 100,000 100,000 Grants 200,000 247,126 447,126 Measure S 541,360 89,514 630,874 436,640 1,178,000 Total 741,360 Empire Creek Improvements Measure 923,949 923,949 Unspecified 4,191,230 4,191,230 923,949 4,191,230 5,115,179 di Total Harveston Community Park Building Renovation and Expansion Developer Contribution 1,250,000 (1,190,000) 60,000 DIF-Quimby 157,130 157,130 (1,190,000) 217,130 Total 1,407,130 59 AOk (�Th. _�_ City of Temecula Fiscal Years 2026-30 H--(Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project Infill Recreational Amenities DIF-Quimby 10,605 389,395 400,000 1,292,503 190,000 1,497,930 Long Canyon Creek Park Restrooms Measure S 15,427 Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements Measure S 347,800 1,032,000 1,379,800 Parks Improvement Program DIF-Quimby 250,000 250,000 General Fund 1,003,059 1,003,059 Measure S 2,041,218 398,782 2,440,000 Reimbursements 103,315 282,000 385,315 680,782 4,078,374 Total 3,397,592 Pickleball Courts DIF-Park & Rec Improvements 256,718 1,193,282 1,450,000 DIF-Quimby 202,601 58,399 261,000 Measure S 400,955 1,624,923 2,025,878 2,876,604 3,736,878 Total 860,274 Playground Equipment Enhancement & Safety Surfacing DIF-Park & Rec Improvements 1,040,000 1,040,000 DIF-Quimby 440,000 500,000 500,000 1,440,000 Measure S 3,837,924 1,339,725 5,177,649 1,339,725 500,000 500,000 7,657,649 Total 5,317,924 Ronald Reagan Sports Park Hockey Rink Developer Contribution 500,000 500,000 DIF-Park & Rec ImprovementsPW 1,014,974 1,014,974 DIF-Quimby 520,432 520,432 Measure S 231,668 1,853,332 2,085,000 3,888,738 4,120,406 Total 231,668 Ronald Reagan Sports Park Restroom Expansion & Renovation Measure S 1,326,285 145,914 1,472,199 Reimbursements 4,290 4,290 145,914 1,476,489 Total 1,330,575 Ronald Reagan Sports Park Skate Park DIF-Park & Rec Improvements 314,624 314,624 DIF-Quimby 1,016,240 1,016,240 Measure S 191,570 3,868,430 719,136 4,779,136 3,868,430 2,050,000 6,110,000 Total 191,570 Sports Court Resurfacing Measure S 255,990 114,267 200,000 100,000 100,000 770,257 Sports Field Lighting - Light Emitting Diode (LED) Conversion Measure S 1,065,417 1,364,583 2,430,000 TEAM 300,000 300,000 1,664,583 2,730,000 Total 1,065,417 Uptown Temecula Sports Park DIF-Park & Rec Improvements 2,000,000 2,000,000 DIF- Quimby 129,673 870,327 1,000,000 2,000,000 Measure S 7,249 1,369,751 1,377,000 Unspecified 9,547,822 9,547, 822 2,240,078 12,547,822 14,924,822 Total 136,922 a (�Th. _�_ City of Temecula Fiscal Years 2026-30 Heartof Southern cacfr` Capital Improvement Program Wine Country Capital Projects Summary - By Project Vail Ranch Park Restrooms Measure S 25,2921 1,297,638 70,000 1,392,930 Butterfield Stage Road Extension PROJECTS FUNDED BY COMMUNITY FACILITIES DISTRICT BONDS PROJECTS CFD 03-02 (Roripaugh Ranch) 38,401,739 635,200 Reimbursements 932,090 TU M F 1,438,000 Nicolas Road Extension & Improvements CFD 03-02 (Roripaugh Ranch) CFD 16-01 (Roripaugh Ranch -Phase II) Developer Contribution Total Total 71,829 635,200 11,784 7,695,933 6,722,850 7,754,093 11,7841 22,172,876 41,407 7,707 7 61 0-3 l The He- of So�J Rf R Summary of Operating & Maintenance Impacts City of Temecula Fiscal Years 2026-30 Capital Improvement Program Maintenance and Operations of PW17-01/711- CITY SECURITY CAMERA SYSTEM 5250 - OTHER OUTSIDE SERVICES Security Camera System 300,000 300,000 300,000 300,000 300,000 FN19-01/724 - CITYWIDE FINANCIAL SYSTEM UPGRADE 5211- SOFTWARE & MAINTENANCE Annual Software Maintenance 86,000 86,000 86,000 86,000 86,000 ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT 5319 - STREET LIGHTING Electricity Savings (695,286) (709,475) (723,665) (738,138) (752,901) PW21-09/683 - ELECTRIC VEHICLES CHARGING 5215 - REPAIR & MAINTENANCE - STATION EQUIPMENT Electric Charging Vehicles Fees (3,100) (3,100) (3,100) (3,100) (3,100) PW17-19/690 - 1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING 5415 - LANDSCAPE MAINTENANCE Required by Caltrans 60,805 62,046 63,289 65,188 67,144 PW17-21/692 - MARGARITA RECREATION CENTER 5100 - SALARIES & WAGES Staffing for MRC (4 positions) 526,609 548,551 570,493 591,600 614,370 Project Staffing for MRC 5119 - PART-TIME (PROJECT) (45 positions - 13.07 FTEs) 705,946 735,361 764,775 795,366 825,978 5240 - UTILITIES Additional Utility Costs 71,371 72,828 74,285 77,034 79,999 5250 - OTHER OUTSIDE SERVICES Janitorial/Security 129,251 131,888 134,526 139,504 144,873 1,433,177 1,488,628 1,544,079 1,603,504 1,665,220 IT20-01/780 - OLD TOWN SECURITY CAMERA & Maintenance fee for Old Town SOUND SYSTEM 5215 - REPAIR & MAINTENANCE Sound System 75,000 75,000 75,000 75,000 75,000 PWPE07-03/PW23-18 - LONG CANYON CREEK PARK RESTROOMS 5250 - OTHER OUTSIDE SERVICES Janitorial Services 29,866 30,475 31,085 31,706 32,340 PWPE-07/155 - PARK RESTROOMS RENOVATIONS, EXPANSION AND ADA IMPROVEMENTS 5250 - OTHER OUTSIDE SERVICES Janitorial Services 27,591 28,154 28,717 29,292 29,878 PWPE07-02 - VAIL RANCH PARK RESTROOMS 5250 - OTHER OUTSIDE SERVICES Janitorial Services Operating cost impacts are estimated by the Project Manager. * 2025-26 Proposed 0&M Impacts are included in the Proposed Operating Budget The Projected Operating impacts have been reflected in the City's General Fund and TCSD 5-Year Financial Forecasts. 706 62 Lojel I I ff"I 1101 k, m!J Lole 4WO� wommolomp, c- -AMJ l The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program Circulation Projects Map ID Description Map ID Description 1 Butterfield Stage Road Seperated Bike Lanes 11 Motor Car Parkway Improvements 2 Butterfield Stage Road Storm Drain Improvements 12 Murrieta Creek Bridge at Overland Drive 3 Cherry Street Extension and Murrieta Creek Crossing 13 North General Kearny Street Improvements 4 De Portola Road/Jedediah Smith Road Roundabout Project 14 Overland Drive Extension Commerce Center 5 Diaz Road Expansion 15 Overland Drive Widening 6 I-15/French Valley Parkway Improvements- Phase II 16 Rainbow Canyon Road Pavement Rehabilitation 7 I-15/French Valley Parkway Improvements- Phase III 17 Rancho California Road Median Improvements 8 I-15/French Valley Parkway Improvements- Phase IV 18 Ynez Road Improvements - Phase I 9 I-15 Congestion Relief 64 19 Ynez Road Improvements - Phase II 10 Interstate- 15/State Route 79 South Ultimate Interchange f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program BUTTERFIELD STAGE ROAD STORM DRAIN IMPROVEMENTS Circulation Project Project Description: This project will install storm drain improvements on the east side of Butterfield Stage Road from south of De Portola Road to south of Wolf Store Road. The project includes the installing of storm drain pipes, widening the east side of Butterfield Stage Road north of Temecula Parkway, and relocating sewer facilities. The project is funded by County Assessment District 159 and the County of Riverside. Benefit: This project provides storm drain improvements to protect adjacent areas from potential flooding and improves traffic circulation at the intersection of Butterfield Stage Road and Temecula Parkway. Core Value: A Safe and Prepared Community Project Status: The County of Riverside is in the final stages of design. Department: Public Works - Account No. 210.265.999.5800.PW23-15 / 792 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 433,150 433,150 5804-Construction 8,663,000 8,663,000 5805-Construction Engineering 2,165,750 2,165,750 5700-Land Acquisition 600,000 600,000 Total Expenditures 11,861,900 11,861,900 Source of Funds: 4479-County AD 159 4,008,270 4,008,270 4666-Developer Contribution 4,853,630 4,853,630 4438-Reimbursements 3,000,000 3,000,000 Total Funding 11,861,900 11,861,900 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Reimbursements reflect the contribution from the County of Riverside 2. An agreement is being executed between the City and Riverside County for this project. 3. Developer Contribution will be reimbursed to the Developer through CFD 25-01 !al Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program CHERRY STREET EXTENSION & MURRIETA CREEK CROSSING Circulation Project Project Description: This project includes the design, environmental clearance, and construction of the extension of Cherry Street from Adams Avenue to Diaz Road, including a bridge across Murrieta Creek at the northerly City limits. Initially, preliminary engineering and environmental assessments will be performed to evaluate feasibility of several crossing types. If deemed appropriate, the project will proceed to final design, environmental clearance/permits, right of way acquisition, and construction. Benefit: This project improves traffic circulation and access from and to the northerly industrial area west of Murrieta Creek. Core Value: Transportation Mobility and Connectivity Project Status: Design and environmental assessment will be done through Fall 2025. Department: Public Works - Account No. 210.265.999.5800.PW19-15 / 524 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 210,203 77,641 287,844 5802-Design & Environmental 408,628 408,628 Total Expenditures 1 618,8311 77,641 696,472 Source of Funds: 4002-Measure S 1 618,8311 77,641 696,472 Total Funding 1 618,831 77,641 696,472 Future Operating & Maintenance Costs: Total Operating Costs Adk f The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program DE PORTOLA ROAD / JEDEDIAH SMITH ROAD ROUNDABOUT PROJECT Circulation Project Project Description: This project includes the design and construction of a traffic circle, roundabout, on Ynez / De Portola Road at the intersection of Jedediah Smith Road. The improvements include the construction of a raised traffic circle with desert style hardscape inside the circle. Benefit: This project maintains the natural beauty of the community and improves traffic safety at this intersection. Core Value: Healthy and Livable City Project Status: This project was initiated in Fiscal Year2023-24. Department: Public Works - Account No. 210.265.999.5800.PW23-01 / 797 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 31,745 125,255 233,000 390,000 5804-Construction 1,010,000 1,890,000 2,900,000 5805-Construction Engineering 45,000 33,000 78,000 5802-Design & Environmental 11,641 528,859 110,000 650,500 5700-Land Acquisition 400,000 400,000 5806-MSHCP 50,500 50,500 Total Expenditures 43,385 2,159,615 2,266,000 4,469,000 Source of Funds: 4242-DIF-Street Improvements 43,385 1,359,615 1,106,000 2,509,000 4025-Grants 800,000 800,000 4170-Measure A 1,160,000 1,160,000 Total Funding 43,385 2,159,615 2,266,000 4,469,000 Future Operating & Maintenance Costs: Total Operating Costs I I I Notes : 1. Grant funding reflects the Economic Development Initiative / Community Project Funding (EDI/CPF) for Federal Fiscal Year2023 - Federal Omnibus Bill 2023 signed into law on 12/29/2023. 67 f Alk The Heart of Southern California Wine Country DIAZ ROAD EXPANSION Circulation Project Project Description: Converts Diaz Road into a Major Arterial (4 Lanes Divided) classification, between Cherry Street and Rancho California Road. Improvements will be added to Diaz Road on its current alignment as shown in the Roadway Plan of the General Plan's Circulation Element. This project includes the design, environmental clearance, right of way acquisition, and construction necessary to complete the 2.2 mile segment, which will be developed and constructed in phases: Phase 1: Diaz Road from Winchester Rd to Rancho California Rd and Phase 2: Diaz Road from Cherry Street to Winchester Rd has an unspecified funding source. Benefit: This project improves traffic circulation by expanding an important north -south arterial on the west side of the City and completes a portion of the designated Western Bypass. Core Value: Transportation Mobility and Connectivity Project Status: Phase 1 is in the design and environmental clearance phase. Construction of Phase 1 is anticipated in the Summer of 2024. Department: Public Works - Account No. 210.265.999.5800.PW17-25 / 521 Level: III City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed Adjusted Budget 2026-27 2027-28 Projected Projected 2028-29 2029-30 Projected Projected Total Project Cost 5801-Administration 263,164 118,871 139,478 521,513 5804-Construction 10,000,000 2,000,000 800,000 12,800,000 5805-Construction Engineering 900,000 255,000 1,155,000 5802-Design & Environmental 1,238,856 415,622 280,000 1,934,478 5806-MSHCP 500,000 140,000 640,000 Total Expenditures 1 1,502,0201 11,934,493 - 2,000,000 1,614,4781 17,050,991 Source of Funds: 4242-DIF-Street Improvements 590 590 4083-Grants 2,000,000 2,000,000 4170-Measure A 296,048 5,636,499 5,932,547 4002-Measure S 171,445 600,931 772,376 4472-TUMF (WRCOG) 1,065,923 5,665,077 61731,000 4452-Unspecified 1,614,478 1,614,478 Total Funding 1,534,006 11,902,507 - 2,000,000 1,614,4781 17,050,991 Future Operating & Maintenance Costs: Total Operating Costs M f Alk The Heart of Southern California Wine Country DIAZ ROAD EXPANSION Circulation Project City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: I Actuals I Adjusted Budget Projected Projected Projected Projected I Cost Notes : 1. TUMF Zone funding is pursuant to approval of the Public Works Committee to program PAED and ENG to Diaz Road (designated Western Bypass). After the approval of the WRCOG Executive Committee, an agreement between the City and WRCOG will need to be executed. After the PAED and ENG phases are complete, City will request that any unused funds be reprogrammed to the CON phase. 2. TUMF (WRCOG) Zone funding: $1,065,923 for Design/Environmental and $3,500,000 for Construction. Additional $1,000,000 to be programmed for Construction by WRCOG. City's maximum share is reached with Fiscal Year2024-25 appropriation ($6,731,000). 3. CPFCDS Grant funding in the amount of $2,000,000 has been earmarked for the City of Temecula pending Congressional final appropriations bill approval. .• Adk f The Heart of Southern California Wine Country FLASHING BEACONS & SPEED ADVISORY SIGNS Circulation Project Project Description: This project maintains the City's Neighborhood Traffic Calming Program, School Area Safety, and Arterial Traffic Calming by installing flashing beacons, rectangular rapid flashing beacons (RRFB) and speed advisory signs to advise motorists of school zones, crosswalks and speed limits. This project includes solar powered panels, programmable timers, chargeable batteries, aluminum poles, signs, and all necessary installation equipment. Benefit: This project improves traffic safety on roadways, neighborhoods, and school zones. Core Value: A Safe and Prepared Community Project Status: The installation of flashing beacons and LED speed limit display signs is ongoing. Department: Public Works - Account No. 210.265.999.5800.PWFB-18 / 670 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 2,000 2,000 5804-Construction 296,730 38,553 335,284 5802-Design & Environmental 2,000 2,000 Total Expenditures 296,730 42,553 339,284 Source of Funds: 4243-DIF-Traffic Signals 4002-Measure S 81,284 215,446 42,554 81,284 258,000 Total Funding 296,730 42,554 339,284 Future Operating & Maintenance Costs: Total Operating Costs 70 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE II Circulation Project Project Description: This project includes the design and construction of the two lane northbound collector/distributer road system beginning north of the Winchester Road Interchange on -ramps and ending just north of the 1-15/1-215 junction with connectors to 1-15 and 1-215. Benefit: This project will address and improve traffic circulation in the City's northern area by providing the northbound collector/distributer road system. Core Value: Transportation Mobility and Connectivity Project Status: Construction May 2023 through June 2025. Department: Public Works - Account No. 210.265.999.5800.PW16-01 / 726 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 3,451,937 448,397 3,900,334 5804-Construction 48,270,399 41,684,601 1,000,000 90,955,000 5805-Construction Engineering 5,804,189 5,096,811 10,901,000 5802-Design & Environmental 19,439,608 30,159 19,469,768 5700-Land Acquisition 13,796,241 727,010 14,523,251 5240-Utilities 1,993 1,993 Total Expenditures 90,764,367 47,986,979 1,000,000 139,751,346 Source of Funds: 4271-CFD 01-02 (Harveston) 1,005,840 1,005,840 4666-Developer Contribution 1,000,000 1,000,000 4242-DIF-Street Improvements 75,360 75,360 4001-General Fund 4,236,174 4,236,174 4668-1NFRA Grant 24,512,035 25,487,965 50,000,000 4170-Measure A 1,627,914 1,627,914 4002-Measure S 5,561,573 469,762 6,031,335 4438-Reimbursements 6,023,250 6,023,250 4465-SAFETEA-LU 1,602,360 1,602,360 4426-STIP-Surface Transportation 21,406,924 26,193,076 47,600,000 Improvement Program 4473-TUMF (CETAP/RCTC) 472,841 326,106 798,947 4474-TUMF (RCTC) 3,016,562 31016,562 4472-TUMF (WRCOG) 1 16,000,5831 733,021 16,733,604 Total Funding 1 83,939,056 54,812,290 1,000,000 139,751,346 71 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE II Circulation Project 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: I Actuals I Adjusted Budget Projected Projected Projected Projected I Cost Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. General Fund Includes Required Contribution match for TUMF (CETAP/RCTC) funds. 2. State Transportation Improvement Program 2014 RCTC Call for projects as approved by the Commission on November 13, 2013 ($10,000,000). 3. TUMF (RCTC)- Regional funding is pursuant to RCTC Agreement No.06-72-048-00 for a total of $7,517,000 ($5,517,000-ROW; $2,000,000-PS&E). $200,000 City Match, Phase I expended $3,174,000-ROW; $2,000,000 PS&E; $200,000 City Match. Phase II expended $2,343,000 ROW. 4. TUMF (WRCOG) - TUMF Zone funding is pursuant to WRCOG Agreement No.06-SW-TEM-1079 for a total of $11,575,000 reduced to $11,451,875 ($975,752-PA&ED; $8,801,875-PS&E; $1,674,248-ROW) for Phase I and Phase 11. 5. TUMF (WRCOG) - TUMF Zone funding is pursuant to WRCOG Agreement No.05-SW-TEM-1064 for $4,078,000 reduced to $4,043,000 ($108,724 PA&ED;3,934,296 PS&E) for Phase I and Phase 11. 6. TUMF (WRCOG) - TUMF Zone Funding is pursuant to WRCOG Agreement No. 05-SW-TEM-1064 for $1,925,000-ROW. No expenditures for Phase I. 7. TUMF (CETAP/RCTC) - Funding is pursuant to the RCTC Agreement No.17-73-007-00 in the amount of $1,472,509 ($673,562 ROW; $798,947 DESIGN; $106,603 City Match). 8. Developer Contribution reflects extraordinary benefit payments received from the Solana Winchester and Prado Developments. Solana Winchester in the amount of $395,000 and Prado in the amount of $605,000. 72 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE III Circulation Project Project Description: This project includes the design and construction of the complete improvements of the French Valley Parkway Interchange overcrossing and northbound onramps. Benefit: This project will address and improve traffic circulation in the City's northern area by providing another alternative for crossing Interstate15 and access to northbound Interstate 15. Core Value: Transportation Mobility and Connectivity Project Status: Design will begin in Fiscal Year2024-25. Department: Public Works - Account No. 210.265.999.5800.PW19-03 / 728 Level: I '-a Project Cost: Prior Years Actuals 2024-25 Adjusted 2025-26 Proposed Budget 2026-27 Projected 2027-28 Projected 2028-29 Projected 2029-30 Projected Total Project Cost 5801-Administration 144,675 462,325 200,000 200,000 200,000 350,000 450,000 2,007,000 5804-Construction 48,500,000 48,500,000 5805-Construction Engineering 5,800,000 5,800,000 5802-Design & Environmental 191,640 5,008,360 5,200,000 5700-Land Acquisition 2,996,250 1,753,544 3,000,000 7,749,794 Total Expenditures 3,332,565 7,224,229 200,000 200,000 3,200,000 350,000 54,750,0001 69,256,794 Source of Funds: 4165-Affordable Housing 1,669,794 1,669,794 4001-General Fund 30,000 30,000 4002-Measure S 166,184 525,633 200,000 200,000 200,000 1,291,817 4438-Reimbursements 165,183 165,183 4426-STIP-Surface Transportation 5,000,000 5,000,000 Improvement Program 4472-TUMF (WRCOG) 1,301,405 1,698,595 31000,000 4452-Unspecified 1350,000 57,750,0001 58,100,000 Total Funding 3,332,566 7,224,228 200,000 200,000 200,000 350,000 57,750,000 69,256,794 Future Operating & Maintenance Costs: Total Operating Costs 73 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE III Circulation Project 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: I Actuals I Adjusted Budget Projected Projected Projected Projected I Cost Notes : 1. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of Winchester Interchange pursuant to2009 Nexus - $9,822,980.00 2. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of French Valley Interchange pursuant to2009 Nexus - $43,480,000.00. 3. TUMF (WRCOG) - TUMF Zone Funding for right-of-way (ROW) pursuant to Agreement No.20-SW-TEM-1197 - $1,500,000 4. TUMF (WRCOG) - TUMF Zone Funding for right-of-way (ROW as approved by WRCOG for FY2023-24, $1,500,000) - Amendment of Agreement No. 20- SW-TEM-1197 is pending. 5. State Transportation Improvement Program - Riverside County Transportation Commission (RCTC) approved funding at10/11/2023 meeting. California Transportation Commission approval is pending. 6. Affordable Housing funding reflects the acquisition of land with bond proceeds from the 2017 Tax Allocation Housing Bonds, to be used for a potential future Affordable Housing project. 74 IL] Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program 1-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE IV Circulation Project Project Description: This project includes the design and construction of the remaining improvements for French Valley Parkway Interchange including the southbound collector/distributor road system and the braided offramps and onramps. Benefit: This project will address and improve traffic circulation in the Citys northern area by providing a full service interchange with on and off ramps in both directions. Core Value: Transportation Mobility and Connectivity Project Status: Work on this project will begin once funds are available. Department: Public Works - Account No. 210.265.999.5800.PW28-99 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 3,500,000 3,500,000 5807-Caltrans Oversight 24,000,000 24,000,000 5804-Construction 128,000,000 128,000,000 5805-Construction Engineering 6,000,000 6,000,000 5802-Design & Environmental 15,500,000 15,500,000 5700-Land Acquisition 4,400,000 4,400,000 Total Expenditures 181,400,000 181,400,000 Source of Funds: 4452-Unspecified I I 181,400,0001 181,400,000 Total Fundine I -I - - - 181.400.0001 181.400.000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of Winchester Interchange pursuant to2009 Nexus - $9,822,980.00 2. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of French Valley Interchange pursuant to2009 Nexus - $43,480,000.00 75 Alk The Heart of Southern California Wine Country 1-15 CONGESTION RELIEF Circulation Project Project Description: This project includes the design and construction of a single auxiliary lane, northbound Interstate 15 (1-15) connecting the Temecula Parkway on -ramp to the Rancho California Road off -ramp. Benefit: This project provides an operational improvement to relieve congestion on northbound 1-15. It represents one of several operational improvements identified by the Move 1-15 Regional Task Force to address congestion on 1-15. Core Value: Transportation Mobility and Connectivity Project Status: Construction essentially complete and the new auxiliary lane was opened in October 2024. The City is coordinating the completion of punch list and closeout items. Department: Public Works - Account No. 210.265.999.5800.PW19-02 / 609 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 280,878 194,149 475,027 5804-Construction 2,045,966 4,109,022 6,154,988 5805-Construction Engineering 533,365 686,635 1,220,000 5802-Design & Environmental 1,373,163 35,532 1,408,695 Total Expenditures 4,233,372 5,025,337 9,258,710 Source of Funds: 4001-General Fund 1,606,216 302,494 1,908,710 4078-Reimbursement-Pechanga IGA 2,500,000 2,500,000 4438-Reimbursements 100,000 100,000 4484-S H O P P 1,250,000 1,250,000 4473-TUMF (CETAP/RCTC) 3,500,000 3,500,000 Total Funding 5,456,216 3,802,494 9,258,710 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. SHOPP - State Highway Operation and Protection Program and Minor Program 2. RCTC Agreement No. 22-73-032-00; City Agreement 2022-035 3. Reimbursement of $100,000 reflects contribution from the City of Murrieta 76 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program I-15/STATE ROUTE 79 SOUTH ULTIMATE INTERCHANGE Circulation Project Project Description: This project includes the construction of a ramp system improving access to Interstate 15 from State Route 79 South, to accommodate traffic generated by future development anticipated in the City's General Plan as well as regional traffic volume forecasted through 2037. Benefit: This project will improve circulation and freeway access at the Interstate 15 and State Route 79 South intersection. Core Value: Transportation Mobility and Connectivity Project Status: Construction was completed in April 2020. City is working with Caltrans on transference of project rights of way to the State. Department: Public Works - Account No. 210.265.999.5800.PW04-08 / 662 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 1,541,508 253,024 1,794,533 5804-Construction 26,582,444 990,465 27,572,909 5805-Construction Engineering 4,047,023 254,255 4,301,278 5802-Design & Environmental 4,116,400 101,527 4,217,927 5700-Land Acquisition 13,032,881 150,847 13,183,728 5240-Utilities 19,036 2,487 21,523 Total Expenditures 1 49,339,2921 1,752,605 51,091,897 Source of Funds: 4273-CFD 03-01 (Crowne Hill) 502,211 502,211 4438-Reimbursements 739,192 694,068 1,433,260 4466-Reimbursements/Other 1,190,582 1,190,582 4465-SAFETEA-LU 1,439,839 1,439,839 4460-Senate Bill 621 14,446,520 160,000 14,606,520 4439-STP (RCTC) 12,279,728 696,272 12,976,000 4473-TUMF (CETAP/RCTC) 5,352,215 47,785 5,400,000 4474-TUMF (RCTC) 4,452,000 4,452,000 4472-TUMF (WRCOG) 5,567,289 3,524,196 9,091,485 Total Funding 45,969,5771 5,122,321 51,091,897 Future Operating & Maintenance Costs: Total Operating Costs 77 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program I-15/STATE ROUTE 79 SOUTH ULTIMATE INTERCHANGE Circulation Project 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: I Actuals I Adjusted Budget Projected Projected Projected Projected I Cost Notes : 1. SAFETEA-LU - Funding is pursuant to Authorization/Agreement Summary (E 76) (63.51% of Federal Participating Costs, up to $1,439,840) 2. STP (RCTC) - Funding is pursuant to Authorization/Agreement Summary (E 76)(63.51% of Federal Participating Costs, up to $12,976,000) 3. TUMF (RCTC/Region) - Funding is pursuant to RCTC Agreement No.06-72-506 ($4,452,000 Total) 4. TUMF (RCTC/CETAP) - Funding is pursuant to RCTC Agreement No.11-72-041-00 ($5,400,000 Total;$1,400,000 ROW;$4,000,000 CON). 5. TUMF (WRCOG) - Funding is pursuant to WRCOG Agreement 13-SW-TEM-1163($10,025,244 CON); Returned $933,760 unused to TUMF (WRCOG). 6. Pursuant to RCWD UA 23316 - RCWD shall reimburse City for actual costs of Additive Bid No. 01 ($280,560) 7. Pursuant to EMWD UA 23317 - EMWD shall reimburse City for actual costs of Additive Bid No. 02 ($415,000) 8. Revenues collected on Lease Agreement with Front Street - Service Station, LP dated September 11, 2013 (est. $740,000) 9. Notes : 1. SAFETEA-LU - Funding is pursuant to Authorization/Agreement Summary (E 76) (63.51% of Federal Participating Costs, up to $1,439,840) 2. STP (RCTC) - Funding is pursuant to Authorization/Agreement Summary (E-76)(63.51% of Federal Participating Costs, up to $12,976,000) 3. TUMF (RCTC/Region) - Funding is pursuant to RCTC Agreement No.06-72-506 ($4,452,000 Total)4. TUMF (RCTC/CETAP) - Funding is pursuant to RCTC Agreement No. 11-72-041-00 ($5,400,000 Total;$1,400,000 ROW;$4,000,000 CON). 5. TUMF (WRCOG) - Funding is pursuant to WRCOG Agreement 13- SW-TEM-1163($10,025,244 CON) 6. Pursuant to RCWD UA 23316 - RCWD shall reimburse City for actual costs of Additive Bid No. 01 ($280,560) 7. Pursuant to EMWD UA 23317 - EMWD shall reimburse City for actual costs of Additive Bid No. 02 ($415,000) 8. Revenues collected on Lease Agreement with Front Street - Service Station, LP dated September 11, 2013 (est. $740,000) W Alk The Heart of Southern California Wine Country MEDIANS & PARKWAYS - CITYWIDE Circulation Project Project Description: Pursuant to Conditions of Approval, this project completes the missing portions of the raised landscaped median island on (a) Rancho California Road between Moraga Road to Lyndie Lane ($188,000), and (b) Ynez Road from Date Street to the City boundary ($100,000). Benefit: This project improves traffic circulation by eliminating potential conflicts between left turn movements and through traffic on circulation element streets with a classification of major arterial or higher. Core Value: Transportation Mobility and Connectivity Project Status: This project will reimburse developers for eligible improvements upon project completion. Department: Public Works - Account No. 210.265.999.5800.PWMP-09 / 622 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 666,838 666,838 Total Expenditures 666,838 666,838 Source of Funds: 4242-DIF-Street Improvements 1 854,839 (188,001) 666,838 Total Funding 1 854,839 (188,001) 666,838 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Negative variance in FY2024-25 represents DIF-Street Improvement funds being reprogrammed. 79 Adk f The Heart of Southern California Wine Country MOTOR CAR PARKWAY IMPROVEMENTS Circulation Project Project Description: This project includes the design and construction of roadway improvements on Motor Car Parkway, Ynez Road, Margarita Road, and Solana Way. This project was previously required as part of the Owner Participation Agreement (OPA) with Abbott Corporation, however in 2018 Abbott sold the subject property to Mt. San Jacinto Community College, who assumed interest in the OPA requiring the road improvements. Benefit: This project improves traffic circulation on Motor Car Parkway, Ynez Road, Margarita Road, and Solana Way. Core Value: Transportation Mobility and Connectivity Project Status: This project has not yet started. Department: Public Works - Account No. 210.265.999.5800.PWM1-17 / 620 Level: II City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 750,000 750,000 Total Expenditures 750,000 750,000 Source of Funds: 4381-RPTTF-Redevelopment Property Tax Trust Fund 750,000 750,000 Total Funding - 750,000 750,000 Future Operating & Maintenance Costs: Total Operating Costs I I I Notes : 1. Funding for this project will be provided through the Redevelopment Property Tax Trust Fund (RPTTF) as it was an obligation of the former Temecula Redevelopment Agency. f Alk The Heart of Southern California Wine Country MURRIETA CREEK BRIDGE AT OVERLAND Circulation Project Project Description: This project includes the design and construction of a new bridge crossing over Murrieta Creek between Rancho California Road and Winchester Road. This project also includes environmental studies, mitigation, acquisition of right-of-way, and installation of new traffic signals at Overland Drive intersections with Diaz Road and Enterprise Circle West and Commerce. Benefit: This project improves traffic circulation and access to Overland Drive freeway over -crossing. Core Value: Transportation Mobility and Connectivity Project Status: This project is currently in design and is partially funded by the Federal Highway Bridge Program (HBP). During design phase staff will continue seeking additional programming and allocation of more HBP funds for the project. Department: Public Works - Account No. 210.265.999.5800.PW16-05 / 648 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 408,294 203,108 150,000 761,401 5804-Construction 20,705,200 20,705,200 5805-Construction Engineering 2,932,000 2,932,000 5802-Design & Environmental 1,342,438 1,388,981 2,731,419 5700-Land Acquisition 3,584,000 3,584,000 5806-MS H C P 806,100 424,521 1,230,621 Total Expenditures 1 1,750,732 5,982,188 - 24,211,721 31,944,641 Source of Funds: 4242-DIF-Street Improvements 1,181,533 1,096,387 5,738,847 8,016,767 4417-HBP-Highway Bridge Program 530,421 3,924,579 18,472,874 22,927,874 4002-Measure S 120,666 879,334 1,000,000 Total Funding 1,832,620 5,900,300 - 24,211,721 31,944,641 Future Operating & Maintenance Costs: Total Operating Costs 01 f Alk The Heart of Southern California Wine Country MURRIETA CREEK BRIDGE AT OVERLAND Circulation Project City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: I Actuals I Adjusted Budget Projected Projected Projected Projected I Cost Notes : 1. Highway Bridge Program (HBP) Funding is 88.53% of participating items only. 2. DIF Street Improvements funding covers 11.47% of participating items and 100% of non -participating items. 3. HBP funding is authorized for reimbursement by Caltrans in a piecemeal fashion based on project progress, available funding in any given year, and the progress of other projects in the program. 4. When HBP funds are authorized for reimbursement by Caltrans, the reimbursable fiscal year may or may not be identified. 5. While the HBP recognizes the total project cost, it does not program its funds into the future. !- f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program NORTH GENERAL KEARNY STREET IMPROVEMENTS Circulation Project Project Description: This project will include the construction of full street improvements from Long Canyon Creek Park to just past the Camino Campos Verdes intersection. Improvement plans to include new sidewalk, curb, gutter, ADA ramps and the relocation of traffic signal poles and crosswalk at Camino Campos Verde. A study to identify and prioritize areas with missing sidewalks was completed as part of the Trails and Bikeways Master Plan Update in Fiscal Year 2015-16. Based on the study and the available resources, sidewalks will be constructed in the selected areas considering economy of scale and proximity to private development. Benefit: This project will provide walking surfaces for pedestrians. Core Value: Transportation Mobility and Connectivity Project Status: Project funding has been re -prioritized, and this project will not move forward at this time. Department: Public Works - Account No. 210.265.999.5800.PW24-02 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 4,785 45,215 50,000 5805-Construction Engineering 32,174 32,174 5802-Design & Environmental 295,163 295,163 Total Expenditures 4,785 372,552 377,337 Source of Funds: 4002-Measure S 1 4,7851 372,552 1 377,337 Total Funding 1 4,7851 372,552 377,337 Future Operating & Maintenance Costs: Total Operating Costs Adk f The Heart of Southern California Wine Country OVERLAND DRIVE EXTENSION COMMERCE CENTER Circulation Project Project Description: This project includes the design and construction of the extension of Overland Drive from Commerce Center Drive to Murrieta Creek, just west of Enterprise Circle West. This project also includes environmental studies, acquisition of right-of-way, new road improvements and installation of new traffic signals at Overland Drive intersections with Commerce Center Drive. Benefit: This project improves traffic circulation and access to Overland Drive freeway over -crossing. Core Value: Transportation Mobility and Connectivity Project Status: Construction is complete. The City Council accepted the improvements on December 10, 2019. Traffic signal at Commerce Center Drive is delayed until the Murrieta Creek Bridge is built. Department: Public Works - Account No. 210.265.999.5800.PW16-06 / 602 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 787,813 4,839 792,652 5804-Construction 1,086,122 235,920 1,322,042 5805-Construction Engineering 47,434 6,297 53,731 5802-Design & Environmental 720,946 9,768 730,714 5700-Land Acquisition 5,282,127 73,184 5,355,311 5806-MSHCP 21,968 21,968 5240-Utilities 36,120 5,359 41,480 Total Expenditures 7,982,529 335,368 8,317,897 Source of Funds: 4242-DIF-Street Improvements 4001-General Fund 8,082,475 235,422 8,082,475 235,422 Total Funding 8,317,897 8,317,897 Future Operating & Maintenance Costs: Total Operating Costs M. Alk The Heart of Southern California Wine Country OVERLAND DRIVE WIDENING Circulation Project Project Description: This project includes the design, environmental document, and construction for the widening of Overland Drive from Jefferson Avenue to Commerce Center Drive. The project also includes right of way acquisition. Benefit: This project improves traffic circulation by eliminating the bottleneck of Overland Drive and create a continuous improved Overland Drive corridor from Margarita Road to Enterprise Circle West. Also, this project will facilitate meeting the traffic mitigation requirements for the Murrieta Creek Bridge at Overland Drive project. Core Value: Transportation Mobility and Connectivity Project Status: Project is currently in design. Right of way acquisition in FY 2024-25. Department: Public Works - Account No. 210.265.999.5800.PW20-11 / 783 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 227,193 81,964 300,573 609,730 5804-Construction 3,648,704 3,648,704 5805-Construction Engineering 67,000 115,435 182,435 5802-Design & Environmental 325,124 117,538 478,937 921,600 5700-Land Acquisition 2,500 1,104,680 205,720 1,312,900 5806-MSHCP 67,020 115,415 182,435 Total Expenditures 554,817 1,438,203 4,864,784 6,857,804 Source of Funds: 4242-DIF-Street Improvements 4103-Street Maintenance Fund 554,817 1,438,203 2,937,307 1,927,477 1,993,020 4,864,784 Total Funding 554,817 4,375,510 1,927,477 6,857,804 Future Operating & Maintenance Costs: Total Operating Costs fR PAVEMENT REHABILITATION PROGRAM - CITYWIDE Circulation Project Street and Limits Prior Years Actual Expenditures Pechanga Parkway (Temecula Pkwy to Loma Linda Rd) Butterfield Stage Road (Temecula Pkwy to Southern City Limit) Rancho Way (Diaz Rd. to Buisness Park Dr.) Felix Valdez (Vincent Moraga Dr. to Pujol St.) Santiago Road (East of bridge to Ynez Rd.) La Paz Raod Roundabout Reconstruction Pauba Road (Ynez Rd to Margarita Rd) Rancho Vista Road (Ynez Rd to Margarita Rd) Ynez Road (Rancho California Rd to Solana Wy) Nighthawk Pass (Butterfield Stage Road to Vail Ranch Parkway) Meadows Parkway (Temecula Parkway to Rancho California Rd) Peppercorn Drive (Deer Hollow Way to Redhawk Parkway) Wolf Valley Road (Pechanga Parkway to Redhawk Parkway) City of Temecula Fiscal Years 2026-30 Capital Improvement Program Anticipated Year of Useful Construction & Estimated Life(Years) Funds Available $47,003,695 2024-25 Adjusted (10-20) (10-20) $5, 929, 305 $1,751,627 Total $7,680,932 2025-26 (10-20) (10-20) (10-20) (10-20) Total (10-20) (10-20) Total (10-20) (10-20) (10-20) Total (10-20) (10-20) Total Funding Source RMRA 11 ) Measure A $1,000,000 Measure S $2,827,154 RMRA "' $1,224,000 Measure A $5,051,154 2026-27 $2, 883, 697 RMRA $1,312,000 Measure A $4,195,697 2027-28 $2, 941, 371 RMRA 11 1 $1,401,000 Measure A $4,342,371 2028-29 $3, 000,198 $1,492, 000 $4,492,198 2029-30 Old Town Front Street (s/o First St. to Rancho California Rd. ) (10-20) Redhawk Parkway (Temecula Parkway to Vail Ranch Parkway (10-20) La Paz Roundabout (10-20) $3,000,200 $1,492, 000 Total $4,492,200 Total $77,258,247 RMRA 11 ) Measure A RMRA 11 ) Measure A M Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program PAVEMENT REHABILITATION PROGRAM - CITYWIDE Circulation Project Project Description: This project includes the environmental processing, design, construction of pavement rehabilitation, and reconstruction of major streets as recommended in the Pavement Management Program update. Benefit: This project improves pavement conditions so that the transportation needs of the public, business industry, and government can be met. Core Value: Transportation Mobility and Connectivity Project Status: A priority list of rehabilitation projects from the Pavement Management Program is used to determine the projects to be undertaken. Construction is completed annually based on the allocated funds. Department: Public Works - Account No. 210.265.999.5800.PWPR-01 / 655 Level: I BEFORE AFTER Project Cost: Prior Years Actuals 2024-25 Adjusted 2025-26 Proposed Budget 2026-27 Projected 2027-28 Projected 2028-29 Projected 2029-30 Projected Total Project Cost 5801-Administration 4,131,207 1,273,087 670,888 300,000 300,000 300,000 300,000 7,275,183 5804-Construction 41,268,159 5,494,455 3,991,857 3,645,697 3,742,371 3,892,198 3,892,200 65,926,938 5805-Construction Engineering 815,478 804,197 388,409 250,000 300,000 300,000 300,000 3,158,084 5802-Design & Environmental 801,851 96,192 898,042 Total Expenditures 47,016,695 7,667,932 5,051,154 4,195,697 4,342,371 4,492,198 4,492,200 77,258,247 Source of Funds: 4100-Gas Tax 1,200,000 1,200,000 4001-General Fund 5,692,614 5,692,614 4170-Measure A 23,899,099 1,751,627 1,224,000 1,312,000 1,401,000 1,492,000 1,492,000 32,571,726 4002-Measure S 2,000,000 1,000,000 3,000,000 4438-Reimbursements 302,454 302,454 4102-RMRA 10,309,528 5,929,305 2,827,154 2,883,697 2,941,371 3,000,198 3,000,200 30,891,453 4103-Street Maintenance Fund 3,600,000 3,600,000 Total Funding 47,003,695 7,680,932 5,051,154 4,195,697 4,342,371 4,492,198 4,492,200 77,258,247 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Road Repair and Accountability Act (RMRA) Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program RAINBOW CANYON ROAD PAVEMENT REHABILITATION Circulation Project Project Description: This project includes the design and construction for the pavement rehabilitation of Rainbow Canyon Road, from Pechanga Parkway tc the southern City Limits. Benefit: The project improves pavement conditions so that the transportation needs of the public, business industry and government can be met. Core Value: Transportation Mobility and Connectivity Project Status: Project completed November 2024. Department: Public Works - Account No. 210.265.999.5800.PW22-15 / 786 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 137,289 162,711 300,000 5804-Construction 2,074,910 2,074,910 5805-Construction Engineering 50,000 50,000 5802-Design & Environmental 187,227 287,863 475,090 Total Expenditures 324,515 2,575,485 2,900,000 Source of Funds: 4002-Measure S 4078-Reimbursement-Pechanga IGA 2,550,000 350,000 350,000 2,550,000 Total Funding 2,550,000 350,000 2,900,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Project complete, no changes. Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program RANCHO CALIFORNIA ROAD MEDIAN IMPROVEMENTS Circulation Project Project Description: This project will design and construct missing raised medians on Rancho California Road between Humber Drive and Butterfield Stage Road in accordance with the City's General Plan. In addition, missing street improvements will be constructed on the north side of Rancho California Road between Riesling Court and Promenade Chardonnay Hills. The improvements will include median curbs, curb and gutter, sidewalks, and landscape and irrigation. Benefit: The raised medians will enhance the safety of the street. In addition, the landscaping of the proposed medians will improve the aesthetics of this road for motorists. Core Value: A Safe and Prepared Community Project Status: Design began Spring 2025. Department: Public Works - Account No. 210.265.999.5800.PW23-04 / 791 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 48,839 156,161 300,000 505,000 5804-Construction 4,000,000 4,000,000 5805-Construction Engineering 200,000 200,000 5802-Design & Environmental 698,000 698,000 5240-Utilities 55,000 55,000 Total Expenditures 1 48,8391 909,161 4,500,000 5,458,000 Source of Funds: 4666-Developer Contribution 57,200 57,200 4242-DIF-Street Improvements 42,605 708,195 750,800 4002-Measure S 6,234 143,766 150,000 4452-Unspecified 4,500,000 4,500,000 Total Funding 48,839 909,161 4,500,000 5,458,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Developer Contribution represents the Pervis Development's fair share of the medians. fK Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program TRAFFIC SIGNAL - EQUIPMENT ENHANCEMENT PROGRAM - CITYWIDE Circulation Project Project Description: This project includes the enhancement and upgrade of existing traffic signal equipment at various signalized intersections citywide. This includes replacement of traffic signal controllers, battery back-up systems, Light Emitting Diode (LED) traffic signal indications, traffic signal controller cabinets, service cabinets, safety street lighting, signal communication equipment, and fiber optic cable. This project will also include an upgrade of existing traffic signal conductors including conduit, service conductors, and detector cable to comply with current standards. Benefit: This project enhances traffic safety and supports the long-term enhancements and rehabilitation of City assets and infrastructure. Core Value: Transportation Mobility and Connectivity Project Status: Enhancements will be completed on an ongoing basis when funding becomes available. Department: Public Works - Account No. 210.265.999.5800.PWTE-19 / 680 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 70,747 10,000 10,000 10,000 10,000 110,747 5804-Construction 184,475 500,525 685,000 5601-Furnishings & Equipment 1 1,290,4731 700,568 250,000 250,000 250,000 250,000 12,991,041 Total Expenditures 1,474,948 1,271,841 260,000 260,000 260,000 260,000 3,786,788 Source of Funds: 4243-DIF-Traffic Signals 4002-Measure S 541,788 933,160 1,271,840 260,000 260,000 260,000 260,000 541,788 3,245,000 Total Funding 1,474,948 1,271,840 260,000 260,000 260,000 260,000 - 3,786,788 Future Operating & Maintenance Costs: Total Operating Costs all 37 City of Temecula Fiscal Years 2026-30 [/ Capital Improvement Program TRAFFIC SIGNAL INSTALLATION - CITYWIDE Circulation Project Total Project Signal Location Prior Year Actual Expenditures Rancho California Road at Tee Drive Margarita Road at Jedediah Smith Road $ 1,299,810 $ 236,242 Total $ 1,782,816 $ 3,236 $ 262,873 $ 558,758 Total $ 824,867 Total $ - Year Funding Source Developer Contribution DIF-Traffic Signals Measure S 2024-25 Developer Contribution DIF(Traffic) Measure S 2025-26 DIF(Traffic) Measure S $ 375,000 2026-27 $ 375,000 2027-28 Total $ - Meadows Parkway at Pauba Road (1) $ 300,000 2028-29 Total $ 300,000 Meadows Parkway at Campanula Way (West) (1) $ - 2029-30 De Portola Road at Campanula Way (East)(1) Total $ - $ 3,282,683 (1) DIF Traffic Developer Reimbursement Prior Year Actual Expenditures $ 1,782,816 Fiscal Year 2024-25 $ 824,867 Fiscal Year 2025-26 $ - Fiscal Year 2026-27 $ 375,000 Fiscal Year 2027-28 $ - Fiscal Year 2028-29 $ 300,000 Fiscal Year 2029-30 $ - TOTAL: $ 3,282,683 DIF(Traffic) DIF(Traffic) 91 Alk The Heart of Southern California Wine Country TRAFFIC SIGNAL - INSTALLATION - CITYWIDE Circulation Project Project Description: This project includes the design, construction, installation and modification of traffic signals at various locations throughout the City. The project also includes reimbursement for developer installed traffic signals. Benefit: This project improves traffic safety and circulation throughout the City. Core Value: Healthy and Livable City Project Status: A priority list of traffic signals has been developed. The traffic signals scheduled for installation will be designed and constructed in the scheduled fiscal year when funding becomes available. Reimbursements for developer installed traffic signals will be made as Development Impact Fees for Traffic Signals become available. Department: Public Works - Account No. 210.265.999.5800.PWTS-06 / 682 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 317,149 170,729 487,878 5804-Construction 1,564,416 396,984 375,000 300,000 2,636,400 5802-Design & Environmental 32,951 125,452 158,404 Total Expenditures 1,914,517 693,166 - 375,000 - 300,000 3,282,683 Source of Funds: 4666-Developer Contribution 246,764 3,236 250,000 4243-DIF-Traffic Signals 1,299,810 262,873 375,000 300,000 2,237,683 4002-Measure S 236,242 558,758 795,000 Total Funding 1,782,816 824,867 - 375,000 - 300,000 - 3,282,683 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Developer Contribution from LS Terracina, LLC for developer share of the traffic signal. 0 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program TRAFFIC SIGNAL - SYSTEM UPGRADE (Protected/Permissive Signal Heads) Circulation Project Project Description: This project will install protected/permissive traffic signal heads, on new signal poles and signal mast arms, relocate existing equipment and modify existing striping and raised medians at the following three (3) intersections: Margarita Road at Verdes Lane, Redhawk Parkway at Paseo Parallon/Overland Trail, and Winchester Road at Enterprise Circle. Benefit: This project improves traffic safety and circulation throughout the City. Core Value: Transportation Mobility and Connectivity Project Status: Project is anticipated to be completed in Fiscal Year2024-25. Department: Public Works - Account No. 210.265.999.5800.PW19-09 / 610 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 35,062 29,938 65,000 5804-Construction 585,934 11,966 597,900 5805-Construction Engineering 11,327 9,673 21,000 5802-Design & Environmental 89,905 13,095 103,000 Total Expenditures 722,227 64,673 786,900 Source of Funds: 4477-HSIP-Highway Safety 394,215 95,295 489,510 Improvement Program 4002-Measure S 297,390 297,390 Total Funding 691,605 95,295 786,900 Future Operating & Maintenance Costs: Total Operating Costs 93 Alk The Heart of Southern California Wine Country YNEZ ROAD IMPROVEMENTS - PHASE I Circulation Project Project Description: This project includes widening the easterly side of Ynez Road, from Rancho Vista Road north roughly 1600 feet, to two lanes in each direction, and the completion of missing segments of curb and gutter, sidewalk, and striped medians, in coordination with adjacent development. Benefit: This project improves traffic circulation by widening an important arterial road in this part of the City. Core Value: Transportation Mobility and Connectivity Project Status: Construction is anticipated in FY 2025-26. Department: Public Works - Account No. 210.265.999.5800.PW23-02 / 534 Level: II City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 22,395 370,327 392,722 5804-Construction 2,280,000 2,280,000 5805-Construction Engineering 158,172 158,172 5802-Design & Environmental 322,455 722,823 25,000 1,070,278 5700-Land Acquisition 497,615 497,615 5806-MSHCP 120,000 120,000 Total Expenditures 344,850 3,651,322 522,615 4,518,787 Source of Funds: 4666-Developer Contribution 435,750 435,750 4242-DIF-Street Improvements 42,759 1,042,663 522,615 1,608,037 4025-Grants 2,475,000 2,475,000 Total Funding 478,509 3,517,663 522,615 4,518,787 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Grants Funding Source reflects the 2023 RCTC Western Riverside County Regional call for projects using Measure A Regional Arterial (MARA) grant funds for $1,475,000 and the California State Assembly Bill (AB) 102 grant for $1,000,000. 2. Developer Contribution reflects fees paid by the Rancho Highlands Development for this project. 94 Adk f The Heart of Southern California Wine Country YNEZ ROAD IMPROVEMENTS - PHASE II Circulation Project Project Description: This project includes widening Ynez Road, from Rancho Vista Road to La Paz Street, to two lanes in each direction, and the completion of missing segments of curb & gutter, sidewalk, landscaped medians, street lights and modification of the traffic signal at Santiago Road. This project will be separated into two phases, with phase IIA between Rancho Vista Road and Santiago Road. Phase 116 will be between Santiago Road and La Paz Street. Benefit: This project improves traffic circulation by widening an important arterial road in this part of the City. Core Value: Transportation Mobility and Connectivity Project Status: Phase IIA will be initiated when Phase I is complete. Department: Public Works - Account No. 210.265.999.5800.PW17-17 / 535 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 92,974 92,974 5802-Design & Environmental 254,281 254,281 Total Expenditures 347,255 347,255 Source of Funds: 4242-DIF-Street Improvements 1 619,451 (272,196) 347,255 Total Funding 1 619,451 (272,196) 347,255 Future Operating & Maintenance Costs: Total Operating Costs I ' •ui 1p F • ItW-W J'l • The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program Housing Projects +O E O �pND R S W x M 01041A RD �O G PA+ 0y z i Reference Map 4* I1^♦ O t A O 2 y O t Map ID Description 1 Habitat for Humanity - Old Town Units 2 Las Haciendas Affordable Housing Project 3 Uptown Temecula Affordable Housing Site 4 Vine Creek Affordable Housing Project .., Adk f The Heart of Southern California Wine Country HABITAT FOR HUMANITY - OLD TOWN UNITS Housing Project Project Description: A project for Habitat for Humanity to construction six for -sale affordable/workforce housing units for low income buyers adjacent to previously constructed units located on parcels922062010 and 922062016. Benefit: Upon completion, the City will have an additional 6 affordable housing units, which will serve moderate and low income residents. Core Value: Healthy and Livable City Project Status: The project is currently in the entitlement phase with Planning. Department: Community Development - Account No. 210.265.999.5800.AH22-01 / 827 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program T1P. FRONT ELEVATION �as.ro 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 1,261,000 1,261,000 Total Expenditures 1,261,000 1,261,000 Source of Funds: 4165-Affordable Housing 4299-Contribution of Land 700,000 561,000 700,000 561,000 Total Funding - 1,261,000 1,261,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. 4165 Affordable Housing reflects bond proceeds from the 2017 refinancing of the former Temecula Redevelopment Agency (RDA)2010 and 2011 Tax Allocation Housing Bonds f Alk The Heart of Southern California Wine Country LAS HACIENDAS AFFORDABLE HOUSING PROJECT Housing Project Project Description: This project will provide funding for a 77-unit affordable multi -family housing community consisting of two residential buildings, a community building and tuck -under parking located at 28715 Las Haciendas, located in the Uptown Temecula Specific Plan Area. Funding for this project includes: a $8,910,698 Capital Loan from the available proceeds of the Successor Agency to the Temecula Redevelopment Agency2017B Series Tax Allocation Refunding Bonds; a $718,445 Deferred Fee Loan for Development Impact Fees, Quimby, permit, Public Works and Fire fees related to the project; and a $500,857 Uptown Temecula Specific Plan New Streets In -Lieu Fee reimbursement for the costs of completing a new road connecting Las Haciendas and Calle Cortez. Benefit: Upon completion, the City will have an additional 76 affordable housing units and one manager's unit. The affordable units will be available to extremely low, very low and low-income households. Core Value: Healthy and Livable City Project Status: This project was completed in Fiscal Year2024-2025. Department: Community Development - Account No. 210.265.999.5800.AH2O-01 / 817 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 7,947,784 2,182,216 10,130,000 Total Expenditures 7,947,784 2,182,216 10,130,000 Source of Funds: 4165-Affordable Housing 7,947,784 1,681,359 9,629,143 4259-Uptown Temecula New Streets 500,857 500,857 In Lieu Fee Total Funding 7,947,784 2,182,216 10,130,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Affordable Housing reflects bond proceeds from the 2017 refinancing of the former Temecula Redevelopment Agency2010 and 2011 Tax Allocation Housing Bonds, paid with property tax increment collected within the boundaries of the former Redevelopment Agency. The bond issuances reflect interest rates ranging between 2-5% and fully mature by 12/15/2039. 100 Alk The Heart of Southern California Wine Country UPTOWN TEMECULA AFFORDABLE HOUSING SITE Housing Project Project Description: The City of Temecula as Housing Successor to the Temecula Redevelopment Agency is the owner of vacant land located in the Uptown Temecula Specific Plan. The City plans to go through a request for proposal (RFP) and partner with an affordable housing developer, who will bring a high -quality affordable housing product to this area. The parcel is approximately 1.83 acres of land that is located near planned recreation areas, which will provide various amenities to the future residents of this affordable development. The future affordable development will assist the City in accomplishing the Uptown Temecula Specific Plan which intends to transform a suburban oriented commercial district into an urban mixed -use environment. This project is located near Jefferson Ave and the northern City limit (APN: 910-262-061). Benefit: Providing affordable/workforce housing to the community. Core Value: Healthy and Livable City Project Status: This project is in the initial stages of planning, with a request for proposal solicited in FY2024-25. Department: Community Development - Account No. 210.265.999.5800.AH 23-01 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5802-Design & Environmental 1,000,000 1,300,000 2,300,000 Total Expenditures 1,000,000 - 1,300,000 2,300,000 Source of Funds: 4110-Community Reinvestment 1,000,000 1,000,000 Program 4299-Contribution of Land 1,300,000 1,300,000 Total Funding - 1,000,000 - 1,300,000 2,300,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. The 4299 Contribution of Land amount will ultimately be determined by an independent market appraisal of the land at a point in time when the land is about to be transferred. 101 Adk f The Heart of Southern California Wine Country VINE CREEK AFFORDABLE HOUSING PROJECT Housing Project Project Description: A Disposition and Development Agreement (DDA) for Vine Creek Apartments, a 100% affordable, 60 unit development, was approved by the City Council in June 2019. The City pledged to contribute $6.71 million towards the project, including $698,281 in a deferred fee loan, $5,301,719 permanent loan, and $710,000 purchase loan. The Deferred Fee Loan of $698,281 consists of deferred Development Impact Fees (DIF), QUIMBY fees, permit fees, Public Works fees, and Fire fees for the Project, locked in at 2018-19 amounts. The Permanent Loan is limited to $1,301,719 in funds received by the City from Supplemental Educational Revenue Augmentation Fund (SERAF) Repayments, which have recently been approved by the State Department of Finance as part of the ROPS for the SARDA, and $4,000,000 in Community Reinvestment Program Funds. The Purchase Money Loan of $710,000 reflects the purchase price of the Real Property to be paid by the Developer to the City. Benefit: Upon completion, the City will have an additional 60 affordable housing units, all of which will be at 60% of the area median income (AMI) or lower. Core Value: Healthy and Livable City Project Status: The project is under construction. The project is anticipated to be completed in calendar year 2025. Department: Community Development - Account No. 210.265.999.5800.AH2O-02 / 820 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 6,710,000 6,710,000 Total Expenditures 6,710,000 6,710,000 Source of Funds: 4165-Affordable Housing 2,710,000 2,710,000 4110-Community Reinvestment 4,000,000 4,000,000 Program Total Funding - 6,710,000 6,710,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Affordable Housing funds represent the Supplemental Educational Revenue Augmentation (SERAF) repayments received by the City. 102 OXAL*1 I Ij 0 Fda I I I I t 60 1 The Heart o%Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program Infrastructure Projects • N%coLAS RO O 0� tE O 01 0 iF HD DR �O S gOUANA ivy C R o m MAROP Gp`IFORNtA RD 9 O tO O 95 PARS NPR` O VISTA 00 v O C, 7C RP SA Ro ?s9 g�• sPtW NGO if O A P�? f 0 °a � O z y� 1 A O 2 • OaXoLA�V AST OOQ TEMEGU`p PKYn JP", RAAre 'F L A Fe ti K PW ® �` JPy p�0 Q v 0 1�y 0 O v v �O O� Map ID Description 1 Auto Mall Wayfinding Signs 2 Bike Lane & Trail Program - Great Oak Trail Lighting 3 Bike Lane & Trail Program - RRSP Trails 4 Bike Lane and Trail Program- Temecula Creek SS Trail 5 Community Recreation Center (CRC) Renovation 6 Community Wildfire Protection Plan 7 Fire Station 73 Gym/Garage 8 Fire Station 84 Renovation 9 I-15/SR 79 South Interchange Enhanced Landscaping 10 I-15 Corridor Branding and Visioning Improvments 11 Library Alternate Emergency Operations Center 12 Library Technology Enhancements 13 Margarita Recreation Center Map ID Description 14 Mary Phillips Senior Center Renovation 15 Murrieta Creek Improvements 16 Nicolas Road Multi -Use Trail 17 Old Town Parking Improvements 18 Old Town Security Camera & Sound System 19 Old Town Temecula Parklets Program 20 Santa Gertrudis Creek Phase II - Margarita Undercrossing 21 Sidewalks - Old Town Improvements 22 Sidewalks - Third Street 23 Sidewalks - Pauba Road 24 Sixth Street Improvements 25 South Side Senior Center for Active Adults 26 Temecula Creek Fencing 104 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program AMERICANS WITH DISABILITIES ACT (ADA) TRANSITION PLAN IMPLEMENTATION Infrastructure Project Project Description: The Americans with Disabilities Act (ADA) Transition Plan Implementation will utilize the recently completed Transition Plan and implement its recommendations based on the established priorities. The implementation will include improvements to public facilities, programs, and public rights of way to modify/remove identified barriers over a fiscally constrained framework. Benefit: This project furthers the City's Core Values of A Safe and Prepared Community, Transportation Mobility and Connectivity, as well as Equity. Core Value: Equity Project Status: The Americans with Disabilities Act (ADA) Transition Plan Upgrade was completed in Fiscal Year2017-18. The implementation of the Transition Plan recommendation is an ongoing program. Department: Public Works - Account No. 210.265.999.5800.PW18-16 / 612 Level: I ADA Compliant Project Cost: Prior Years Actuals 2024-25 Adjusted 2025-26 Proposed Budget 2026-27 Projected 2027-28 Projected 2028-29 Projected 2029-30 Projected Total Project Cost 5801-Administration 283,867 148,790 78,660 78,660 78,660 78,660 78,660 825,957 5804-Construction 424,609 462,575 325,000 325,000 325,000 325,000 325,000 2,512,184 5805-Construction Engineering 5,054 32,446 37,500 5802-Design & Environmental 77,085 35,415 112,500 Total Expenditures 790,616 679,225 403,660 403,660 403,660 403,660 403,660 3,488,141 Source of Funds: 4140-CDBG 4002-Measure S 631,062 83,093 431,459 324,227 325,000 78,660 325,000 78,660 325,000 78,660 325,000 78,660 325,000 78,660 2,687,521 800,620 Total Funding 714,154 755,687 403,660 403,660 403,660 403,660 403,660 3,488,141 Future Operating & Maintenance Costs: Total Operating Costs I I I Notes : 1. This is the master CDBG project. The City receives approximately$325,000 in CDBG funds annually used for construction. The City match is approximately $78,660 for design and administration. 105 Adk f The Heart of Southern California Wine Country AUTO MALL WAYFINDING SIGNS Infrastructure Project Project Description: This project will design and install wayfinding signs for the Auto mall. Several wayfinding signs will be installed at key locations. Benefit: Installation of the wayfinding signs will assist patrons and the public to easily find their destinations. Core Value: Economic Prosperity Project Status: This project is on -going. Department: Public Works - Account No. 210.265.999.5800.CM22-01 / 790 Level: II City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 181,000 181,000 5804-Construction 65,782 250,000 315,782 5805-Construction Engineering 15,000 15,000 5802-Design & Environmental 119,218 104,218 223,436 Total Expenditures 200,000 535,218 735,218 Source of Funds: 4002-Measure S I I 200,000 535,218 I 735,218 Total Funding 200,000 535,218 735,218 Future Operating & Maintenance Costs: Total Operating Costs 1: 33 City of Temecula Fiscal Years 2026-30 Capital Improvement Program BIKE LANE AND TRAIL PROGRAM - CITYWIDE Infrastructure Project Total Project Bike Lane and Trail Program Cost Year Funding Source Prior Year Actual Expenditures $ 325,638 AB 2766 $ 19,857 Beyond Grant $ 72,177 DIF - Open Space & Trails Total $ 417,672 Various Projects - Bike Lane and Trail Program $ 139,075 2024-25 AB 2766 Total $ 139,075 Various Projects and Wayfinding Signs $ 50,000 2025-26 AB 2766 Total $ 50,000 North General Kearney Trail $ 160,000 2026-27 AB 2766 Total $ 160,000 Long Canyon Creek Trail $ 175,000 2027-28 AB 2766 $ 1,144,558 Unspecified Total $ 1,319,558 Yukon to Ynez $ 185,000 2028-29 AB 2766 Total $ 185,000 Future Projects $ 185,000 2029-30 AB 2766 Total $ 185,000 2,456,305 Prior Year Actual Expenditures $ 417,672 Fiscal Year 2024-25 Adjusted $ 139,075 Fiscal Year 2025-26 $ 50,000 Fiscal Year 2026-27 $ 160,000 Fiscal Year 2027-28 $ 1,319,558 Fiscal Year 2028-29 $ 185,000 Fiscal Year 2029-30 $ 185,000 TOTAL: $ 2,456,305 107 f Alk The Heart of Southern California Wine Country BIKE LANE AND TRAIL PROGRAM - CITYWIDE Infrastructure Project Project Description: The Multi -Use Trails and Bikeways Master Plan was completed in Fiscal Year2015-16. The Plan includes new trail and bikeway information sheets detailing constraints, solutions, surface types, widths, and estimated construction costs. The City is a Silver Level Bicycle Friendly Community and this project allows for continued implementation of facilities and programs, which further the City's commitment to providing a safe and convenient network that connects schools, parks, open space, shopping, and employment centers. Benefit: This project provides alternative modes of transportation and increases connectivity and accessibility to Old Town, Wine Country, and the City's many schools, parks, trails, and open space areas. Core Value: A Sustainable and Resilient City Project Status: Improvements will be made on an ongoing basis as funding becomes available. Department: Community Development - Account No. 210.265.999.5800.CD18-01 / 703 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 9,472 9,778 19,250 5804-Construction 122,399 123,830 50,000 160,000 1,319,558 185,000 185,000 2,145,787 5802-Design & Environmental 1284,2081 7,060 291,269 Total Expenditures 416,079 140,668 50,000 160,000 1,319,558 185,000 185,000 2,456,305 Source of Funds: 4427-Assembly Bill 2766 325,638 139,075 50,000 160,000 175,000 185,000 185,000 1,219,713 4478-Beyond Grant 19,857 19,857 4051-DIF-Open Space & Trails 72,177 72,177 4452-Unspecified 1,144,558 1,144,558 Total Funding 1 417,6721 139,075 50,000 160,000 1,319,558 185,000 185,0001 2,456,305 Future Operating & Maintenance Costs: Total Operating Costs � 2� f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program BIKE LANE AND TRAIL PROGRAM - GREAT OAK TRAIL LIGHTING Infrastructure Project Project Description: This project includes the installation of solar lights along the Great Oak Trail adjacent to the northeast side of Pechanga Parkway from Deer Hollow Way to Loma Linda Road (approximately1.70 miles, or 8,976 feet). Benefit: This project improves pedestrian and biking experience and enhances safety along the subject trail. Core Value: A Safe and Prepared Community Project Status: This is currently in the design phase. Construction is anticipated in FY2025-26. Department: Public Works - Account No. 210.265.999.5800.PW21-16 / 768 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 63,133 41,867 105,000 5804-Construction 397,058 258,000 655,058 5805-Construction Engineering 30,000 30,000 5802-Design & Environmental 30,000 30,000 5806-MSHCP 32,750 32,750 Total Expenditures 460,191 392,617 852,808 Source of Funds: 4002-Measure S 4528-Service Level C - Zone 28 460,191 352,808 39,809 352,808 500,000 Total Funding 460,191 392,617 852,808 Future Operating & Maintenance Costs: Total Operating Costs 109 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program BIKE LANE AND TRAIL PROGRAM - RONALD REAGAN SPORTS PARK TRAILS Infrastructure Project Project Description: The project includes the design and construction of multi -use trails in the area between Ronald Reagan Sports Park to the north, Pauba Road to the south, Margarita Road to the east, and border of the park to the west. Benefit: This project supports healthy and active lifestyles by promoting recreation programs, parks, trails, and facilities. Core Value: Healthy and Livable City Project Status: Project funding has been re -prioritized, and this project will not move forward at this time. Department: Public Works - Account No. 210.265.999.5800.PW22-05 / 793 Level: II 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 15,377 164,623 1 180,001 5804-Construction - 5802-Design & Environmental 81,3991 741,227 822,627 Total Expenditures 96,776 905,851 - 1,002,627 Source of Funds: 4051-DIF-Open Space & Trails 59,133 59,133 4240-DIF-Quimby 24,828 665,172 690,000 4002-Measure S 12,815 240,679 253,494 Total Funding 96,776 905,851 1,002,627 Future Operating & Maintenance Costs: Total Operating Costs 110 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program BIKE LANE AND TRAIL PROGRAM - TEMECULA CREEK SOUTH SIDE TRAIL Infrastructure Project Project Description: This project includes an agreement with Riverside County Flood Control to install new gates, pave and stripe an existing maintenance road for a Class I Trail. The route would parallel Temecula Creek on the South side, connecting Butterfield Stage Road to Loma Linda Road, terminating at the alignment with Avenida de Missiones. This section of trail is part of the proposed seventeen (17) mile Temecula Loop Trail identified in the Multi -Use Trails and Bikeways Master Plan. Benefit: This section of trail would satisfy the City's Core Values of a Healthy and Livable City, Transportation Mobility and Connectivity, and A Sustainable City. Core Value: Healthy and Livable City Project Status: Design is anticipated to be complete in FY2024-25. The City will continue to pursue outside funding sources for construction. Department: Public Works - Account No. 210.265.999.5800.PW19-11 / 720 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 228,112 132,701 175,000 535,812 5804-Construction 7,827,000 7,827,000 5805-Construction Engineering 200,000 200,000 5802-Design & Environmental 317,321 115,586 432,907 5806-MSHCP 391,350 391,350 Total Expenditures 1 545,4331 248,287 8,593,350 9,387,069 Source of Funds: 4427-Assembly Bill 2766 67,845 67,845 4002-Measure S 477,587 248,287 725,874 4452-Unspecified 8,593,350 8,593,350 Total Funding 545,432 248,287 8,593,350 9,387,069 Future Operating & Maintenance Costs: Total Operating Costs 111 f Alk The Heart of Southern California Wine Country BIKE LANE UPGRADES - CITYWIDE Infrastructure Project Project Description: This project will install greenback bike lane pavement markings/legends on various bicycle corridors throughout the City. Benefit: This project improves bicycle safety and circulation throughout the City. Core Value: Transportation Mobility and Connectivity Project Status: This project is on -going. Department: Public Works - Account No. 210.265.999.5800.PW23-10 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program w ■ 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 50 24,950 25,000 5804-Construction 249,500 249,500 Total Expenditures 50 274,450 274,500 Source of Funds: 4662-HSIP-Highway Safety 224,550 224,550 Improvement Program 4002-Measure S 50 49,900 49,950 Total Funding 50 274,450 274,500 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023 2. City match is $24,550 based on the HSIP application and grant. Additional appropriated local funds are for administration 112 Alk The Heart of Southern California Wine Country BRIDGE MAINTENANCE Infrastructure Project Project Description: This project will remedy deficiencies in bridges to keep them safe for motorists. The work can include, but is not limited to bridge deck surface treatment, crack sealing, rubber seal replacement, rail replacement, and scour protection. In accordance with US Code 23 U.S.C. 151 (U.S. Department of Transportation, Federal Highway Administration), States' Department of Transportation (Caltrans in California) are responsible for inspecting all public highway bridges within the State, except federal and tribal ones, for compliance with the National Bridge Inspection Standards (NBIS). Caltrans provides the City with annual inspection reports of all bridges in Temecula. The City is responsible for fixing deficiencies of bridges within its jurisdiction. Benefit: This project maintains the City's bridges Core Value: A Safe and Prepared Community Project Status: PWBM-05-01/PW23-08 will address the maintenance needs at five (5) bridges passing over Santa Gertrudis Creek at Ynez Road, Margarita Rd, N. General Kearny, Leifer Rd., and Murrieta Creek at Winchester Rd. Construction will begin Spring 2025 Department: Public Works - Account No. 210.265.999.5800.PWBM-05 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2024-25 Adjusted 2025-26 Proposed 2026-27 Budget Projected 2027-28 2028-29 Projected Projected 2029-30 Projected Total Project Cost 5801-Administration 85,418 10,000 113,302 117,360 326,080 5804-Construction 355,942 364,058 360,000 1,080,000 5805-Construction Engineering 10,800 10,800 10,800 32,400 5802-Design & Environmental 26,000 26,000 Total Expenditures 85,418 402,742 488,160 - 488,160 1,464,480 Source of Funds: 4170-Measure A 85,418 402,742 488,160 488,160 1,464,480 Total Funding 85,418 402,742 488,160 - 488,160 1,464,480 Future Operating & Maintenance Costs: Total Operating Costs 113 Alk The Heart of Southern California Wine Country CITY FACILITIES REHABILITATION Infrastructure Project Project Description: This project facilitates rehabilitation projects at City owned and operated facilities such as the Pat Birdsall Sports Park Concessionaire Building, Old Town Parking Garage, CRC Amphitheater, CRC Audio Systems, Temecula SAFE House, exterior painting of Chapel of Memories, LED lighting fixture retrofits at various sites, rehabilitation of facility parking lots. The rehabilitation projects could include, but are not limited to, parking lot lighting replacements, heating ventilation and air conditioner (HVAC) upgrades, roof repairs, carpet and flooring replacement, cabinet re-facing/replacement, concrete repairs, replacement of fencing and repair of swimming pools. Benefit: This project minimizes emergency repair costs, prolongs the service life of facilities, and upgrades aging facility components. Core Value: Healthy and Livable City Project Status: A priority list of rehabilitation projects has been developed. Rehabilitation projects are completed on an ongoing basis as funding becomes available. Department: Public Works - Account No. 210.265.999.5800.PWFR-11 / 701 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2024-25 Adjusted 2025-26 Proposed Budget 2026-27 Projected 2027-28 Projected 2028-29 Projected 2029-30 Projected Total Project Cost 5801-Administration 158,660 158,660 5804-Construction 3,853,759 1,920,221 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 10,773,980 5802-Design & Environmental 46,026 46,026 5601-Furnishings & Equipment 12,826 2,174 15,000 5809-Information Technology 30,000 30,000 Total Expenditures 4,071,271 1,952,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 11,023,666 Source of Funds: 4245-DIF-Corporate Facilities 250,000 30,000 280,000 4350-Facilities Replacement Fund 2,071,271 1,922,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,993,666 4001-General Fund 1,750,000 1,750,000 Total Funding 4,071,271 1,952,395 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 11,023,666 Future Operating & Maintenance Costs: Total Operating Costs 114 f Alk The Heart of Southern California Wine Country CITY FACILITY SECURITY Infrastructure Project Project Description: This project provides for security enhancements to the City's public buildings to ensure the safety of the public and employee population. Projects to include, but are not limited to, installation of security glass, keyless entry access improvements, security bollards, enhanced lighting, and vehicular and pedestrian security gates. Benefit: To protect property and life. Core Value: A Safe and Prepared Community Project Status: Projects to be completed as funding is available. Department: - Account No. 210.265.999.5800.PWFS-08 / 779 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 25,000 25,000 5804-Construction 88,520 111,480 25,000 225,000 5802-Design & Environmental 7,200 17,800 25,000 Total Expenditures 95,720 154,280 25,000 275,000 Source of Funds: 4245-DIF-Corporate Facilities 4002-Measure S 100,000 25,000 150,000 25,000 250,000 Total Funding 100,000 150,000 25,000 275,000 Future Operating & Maintenance Costs: Total Operating Costs 115 Alk The Heart of Southern California Wine Country CITY SECURITY CAMERA SYSTEM Infrastructure Project Project Description: The City Security Camera System will be utilized by the City to support public safety, traffic management, and asset protection activities in service to its citizens. The City's goal for the system is to standardize and integrate existing and new video management systems to provide video technology to improve overall safety and security to the residents of the City. Benefit: To protect property and life. This project provides Police the ability to perform virtual patrols, maximizing staff efficiency and resources. Core Value: Healthy and Livable City Project Status: Project is estimated to be complete by Fiscal Year2024-25. Department: Information Technology - Account No.210.265.999.5800.PW17 -01 / 711 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 2,593 2,593 5804-Construction 3,546,030 804,462 4,350,492 5802-Design & Environmental 1138,3471353 1138,700 Total Expenditures 1 3,686,9691 804,815 4,491,785 Source of Funds: 4245-DIF-Corporate Facilities 752,087 752,087 4256-DIF-Police Facilities 1,121,113 1,121,113 4002-Measure S 2,164,091 454,494 2,618,585 Total Funding 4,037,291 454,494 4,491,785 Future Operating & Maintenance Costs: Total Operating Costs I I 300,000 300,000 300,000 300,000 Notes : 1. Operating & Maintenance costs reflect the ongoing software and equipment maintenance associated with the infrastructure of the security camera system, as well as video storage in accordance with the City's retention policy. 116 f Alk The Heart of Southern California Wine Country CITYWIDE DRAINAGE MASTER PLAN Infrastructure Project Project Description: This project will prepare a report that shows all drainage courses within the City and existing drainage improvements that have been constructed to control storm runoff. In addition, the project will include a master hydrology study showing the anticipated storm flows at build -out. Benefit: The Master Drainage Plan will provide the City with sufficient up-to- date and accurate information to systematically plan and manage its drainage systems and provide higher level of flood protection to its residents, communities, properties, and infrastructure investments. Core Value: A Safe and Prepared Community Project Status: Drainage system information has been collected. Data base has been compiled and integrated into Geographic Information System (GIS). Master hydrology and site specific hydraulics is complete. Analysis and evaluation of capital improvement projects will continue into FY2024-25. Department: Public Works - Account No. 210.265.999.5800.PW19-16 / 722 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program rune 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 164,573 63,724 43,000 271,297 5802-Design & Environmental 396,777 183,479 580,256 Total Expenditures 1 561,349 247,203 43,000 851,553 Source of Funds: 4002-Measure S 482,200 326,353 43,000 851,553 Total Funding 1 482,200 326,353 43,000 851,553 Future Operating & Maintenance Costs: Total Operating Costs 117 f Alk The Heart of Southern California Wine Country CITYWIDE FINANCIAL SYSTEM UPGRADE Infrastructure Project Project Description: This project includes the implementation costs associated with the upgrade of the City's Financial Accounting System. The City's current system was implemented in 2001, and a successor Enterprise Resource Planning (ERP) solution is available. The ERP system will integrate with existing software platform used Citywide and will provide upgraded core applications for financial management and human resource management. Benefit: This project increases efficiencies, accountability and transparency of the City's financial, accounting and human resource information. Core Value: Accountable and Responsive City Government Project Status: The implementation of the Financial modules were completed in FY2023-24. The Human Resources and Payroll module will commence in FY2024-25. Department: Public Works - Account No. 210.265.999.5800.FN19-01 / 724 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Aft 3-- The Heart of Southern California Wine Country 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 130,000 130,000 5809-Information Technology 675,213 571,505 1,246,718 Total Expenditures 1 675,2131 701,505 - 11376,718 Source of Funds: 4001-General Fund - 4002-Measure S 613,184 613,184 4325-Technology Replacement Fund 62,028 701,506 763,534 Total Funding 675,212 701,506 1,376,718 Future Operating & Maintenance Costs: Total Operating Costs 1 1 86,000 86,000 86,000 86,000 Notes : 1. Operating & Maintenance costs reflect ongoing software maintenance for new Financial System. 118 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE (LED) RETROFIT Infrastructure Project Project Description: Phase I of this project acquired the Southern California Edison (SCE) owned streetlights within the City's boundary, including the light poles, mast arms, and light fixtures. Phase 11 of this project includes retrofitting the purchased lights with a Light Emitting Diode (LED) lighting system. Benefit: This project provides for the opportunity to reduce facilities costs, reduce energy usage, and extend the life of lighting infrastructure. Core Value: A Sustainable and Resilient City Project Status: Project is complete. Department: Public Works - Account No. 210.265.999.5800.PW17-18 / 688 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 72 72 5804-Construction 189,095 (12,724) 176,371 5610-Equipment 7,781,591 12,724 7,794,315 Total Expenditures 7,970,759 - 7,970,758 Source of Funds: 4001-General Fund 4002-Measure S 2,503,311 5,500,000 (32,553) 2,503,311 5,467,447 Total Funding 8,003,311 (32,553) 7,970,758 Future Operating & Maintenance Costs: Total Operating Costs 1 1 (709,475) (723,665) (738,138) (752,901) l Notes : 1. Operating & Maintenance savings represents a combination of energy savings realized from the conversion to LED light bulbs, as well as reduced electricity rates charged by SCE after the City acquires the streetlights. 119 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program COMMUNITY RECREATION CENTER (CRC) RENOVATIONS Infrastructure Project Project Description: This project facilitates the rehabilitation of the CRC, including the expansion and reconfiguration of the teen center; renovation of the building including safety features, flooring, roof, and restroom facility access; ADA compliance; renovation and expansion of existing office space and rec rooms including AV upgrades; expanded storage space and upgraded kitchen equipment. Phase 1 includes full repair, maintenance, and updating to current standards. Phases 2 and 3 include expansion and improvements throughout the facility. Benefit: This project will create a safe, engaging place for teens to participate in a variety of activities, while also providing necessary renovations to the facility. Core Value: Healthy and Livable City Project Status: Phase 1 construction and Phase 2 design in FY2024-25. Department: Public Works - Account No. 210.265.999.5800.PW19-07 / 730 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 458,465 8,018 466,483 5804-Construction 4,060,087 107,684 4,167,771 5805-Construction Engineering 346,999 105,191 452,190 5802-Design & Environmental 433,267 610,494 1,043,761 5809-Information Technology 79,669 79,669 Total Expenditures 1 5,378,4871 831,387 6,209,874 Source of Funds: 4244-DIF-Park & Rec Improvements 1,521,208 1,521,208 4240-DIF-Quimby 2,966, 351 84,241 3,050,592 4002-Measure S 863,166 774,908 1,638,074 Total Funding 5,350,725 859,149 6,209,874 Future Operating & Maintenance Costs: Total Operating Costs 120 Alk The Heart of Southern California Wine Country COMMUNITY WILDFIRE PROTECTION PLAN Infrastructure Project Project Description: The Community Wildfire Protection Plan, entitled Temecula Creek Wildfire Risk Reduction Community Plan, will utilize the highest -risk and most complex property within the City of Temecula as a model for how to develop comprehensive planning for other properties subject to fire risk throughout the City. Benefit: The project is critically needed for 177 acres in Temecula Creek within the Very High Fire Severity Zone. Greenhouse Gases (GHG) would be reduced with a plan to prevent wildfires, reduce burn area and protect the adjacent 28,491 acres and 3,048 structures worth an estimated $1.5 billion. The City will use this plan in other fire risk areas with sensitive habitat, and share it statewide to deter even more fires to reduce GHG. Core Value: A Safe and Prepared Community Project Status: The project is complete. Department: Community Development - Account No. 210.265.999.5800.CD23-01 / 772 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 216,004 161,996 378,000 Total Expenditures 216,0041 161,996 378,000 Source of Funds: 4025-Grants 266,598 111,402 378,000 Total Funding 1 266,5981 111,402 378,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Funding Source is CalFire Grant No. 5GG20167 121 Adk f The Heart of Southern California Wine Country COMPREHENSIVE GENERAL PLAN UPDATE Infrastructure Project Project Description: California State Law requires that each city adopt a comprehensive General Plan as the fundamental policy document for future development. It provides the framework for management and utilization of the City's physical, economic, and human resources. This document guides civic decisions regarding land use, conservation of existing housing and the provision of new dwelling units, the provisions of supporting infrastructure and public services, the protection of environmental resources, the allocation of fiscal resources, and the protection of residents from natural and human - caused hazards. The City's General Plan was last updated in 2005. The General Plan will serve as the blueprint for the community for approximately the next fifteen years. This project will update all of the elements of the General Plan and will also include the implementation of new legislation to ensure compliance with State Law. Benefit: The General Plan update satisfies all six of the City's core values: Healthy and Livable City; Economic Prosperity; Safe and Prepared Community; Sustainable City; Transportation, Mobility, and Connectivity; and Accountable and Responsive Local Government. Core Value: Healthy and Livable City Project Status: The project is underway. A General Plan consultant was hired to manage the project starting in January of 2025. A request for proposal (RFP) and contract award are expected in 2025. Department: Community Development - Account No. 210.265.999.5800.PW21-02 / 777 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 560,441 1,119, 559 1,680,000 5802-Design & Environmental 49,517 1,320,483 500,000 1,870,000 Total Expenditures 1 609,9581 2,440,042 500,000 3,550,000 Source of Funds: 4001-General Fund 4025-Grants 1,057,141 310,000 1,182,859 500,000 500,000 2,740,000 810,000 Total Funding 1,367,141 1,682,859 500,000 3,550,000 Future Operating & Maintenance Costs: Total Operating Costs 122 f Alk The Heart of Southern California Wine Country COMPREHENSIVE GENERAL PLAN UPDATE Infrastructure Project City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: I Actuals I Adjusted Budget Projected Projected Projected Projected I Cost Notes : 1. Grants funding includes: $500,000 in Local Early Action Planning Grant Program (LEAP) funding provided by the California Department of Housing and Community Development (HCD) and $310,000 in Senate Bill 2 Planning Grant. 2. In addition to these grants, $175,000 in funding has been granted through the Sustainable Communities Program, which supplemented Planning Department operating funds to start the General Plan update process and was reflected in account001.161.999.5248. This grant was used for CEQA VMT analysis for Traffic Impact Analysis Guidelines, as required by 56743. 123 Alk The Heart of Southern California Wine Country ELECTRIC VEHICLES CHARGING STATION Infrastructure Project Project Description: This project includes the design and construction of improvements to accommodate, procure, and install electric vehicle service equipment (EVSE), more commonly known as "charging stations" at various City facilities. Benefit: This project encourages alternative transportation options. Core Value: A Sustainable and Resilient City Project Status: Installations at the Park & Ride on Temecula Parkway, Sixth Street parking lot, parking structure on Mercedes Street, and at the Mike Naggar Community Park are complete. Installation of charging stations at the City's Field Operations Center has been completed. One new site will be identified. Department: Public Works - Account No. 210.265.999.5800.PW21-09 / 683 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 67,458 32,542 100,000 5804-Construction 234,481 158,248 392,729 Total Expenditures 301,940 190,790 492,729 Source of Funds: 4427-Assembly Bill 2766 47,000 47,000 4665-MSRC-Mobile Source Air Review 111,574 29,426 141,000 Committee Grant 4438-Reimbursements 5,800 5,800 4145-TEAM 188,277 110,652 298,929 Total Funding 346,851 145,878 492,729 Future Operating & Maintenance Costs: Total Operating Costs (3,100) (3,100) (3,100) (3,100) 124 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program FIBER OPTIC COMMUNICATIONS SYSTEMS— CITYWIDE Infrastructure Project Project Description: This project will provide for the design and installation of fiber optic cable and conduit at various locations throughout the City. Benefit: This project will upgrade the City's fiber optic communications and traffic signal system equipment throughout the City, including preparation of a Communications System Master Plan to guide the implementation of future communications and technology improvements connecting traffic signals, facilities and other infrastructure throughout the City. This project will enhance the City's core value of a safe and prepared community, as well as transportation mobility and connectivity as it relates to traffic signal communication. Core Value: A Safe and Prepared Community Project Status: Project was initiated in Fiscal Year2021-22 and is on -going. Department: Public Works - Account No. 210.265.999.5800.PWFO-21 / 789 Level: I Aft A 3— (/The Heart of Southern California Wine Country 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5802-Design & Environmental 120,150 12,850 133,000 5610-Equipment 75,000 75,000 Total Expenditures 120,150 87,850 208,000 Source of Funds: 4002-Measure S 1 120,1501 87,850 208,000 Total Funding 1 120,150 87,850 208,000 Future Operating & Maintenance Costs: Total Operating Costs 125 Alk The Heart of Southern California Wine Country FIRE STATION 73 GYM/GARAGE Infrastructure Project Project Description: This project will consist of adding a 2nd garage in the rear of the property to park the squad and additional vehicles, along with a gym and storage room. Benefit: This improvement to the station will allow for the station crew to stay at the facility to workout on a daily basis. The addition of the garage will offer an outside storage with roof to house the squad to reduce the wear and tear on these vehicles. Core Value: A Safe and Prepared Community Project Status: This project will be designed in Fiscal Year 2024-25. Department: Fire - Account No. 210.265.999.5800.PW19-13 / 697 Level: II City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 179,554 115,446 111,000 406,000 5804-Construction 117,990 10,165 3,524,345 3,652,500 5805-Construction Engineering 470,000 470,000 5802-Design & Environmental 265,469 126,756 62,255 454,480 5806-MSHCP 182,700 182,700 Total Expenditures 1 563,0141 252,366 4,350,300 5,165,680 Source of Funds: 4245-DIF-Corporate Facilities 43,651 50,000 93,651 4246-DIF-Fire Protection Facilities 102,210 25,126 127,336 4002-Measure S 460,804 183,589 4,300,300 4,944,693 Total Funding 563,014 252,366 4,350,300 5,165,680 Future Operating & Maintenance Costs: Total Operating Costs 126 Alk The Heart of Southern California Wine Country FIRE STATION 84 RENOVATION Infrastructure Project Project Description: This project includes the design, construction and renovation of Fire Station #84, including upgrades to the training room. This fire station serves as the headquarter station for the City of Temecula Fire Department. This renovation will give a fresh look to the station as well as update the facility to be more energy efficient. The renovation will add a gym to the facility, upgrade electrical, upgrade the windows, and re -paint the exterior and interior of the station. The living quarters will also receive some renovations to the bathrooms, kitchen and day room. Benefit: This improvement will create a better learning experience for our community members that attend classes for training. Core Value: A Safe and Prepared Community Project Status: This project will be constructed in Fiscal Year2024-25. Department: Fire - Account No. 210.265.999.5800.PW19-14 / 687 Level: II City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 255,463 148,287 403,750 5804-Construction 1,850 1,824,281 569,576 2,395,707 5805-Construction Engineering 59,545 234,800 294,345 5802-Design & Environmental 157,533 192,660 350,193 5809-Information Technology 85,000 85,000 5806-MSHCP 455 455 Total Expenditures 414,846 2,310,228 804,376 3,529,450 Source of Funds: 4245-DIF-Corporate Facilities 85,000 577,131 662,131 4246-DIF-Fire Protection Facilities 448,248 448,248 4350-Facilities Replacement Fund 800,000 800,000 4002-Measure S 709,861 681,965 227,245 1,619,071 Total Funding 709,861 2,015,213 804,376 3,529,450 Future Operating & Maintenance Costs: Total Operating Costs 127 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program 1-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING Infrastructure Project Project Description: The project includes the landscape beautification of the west side of the Interstate 15/State Route 79 South (Temecula Parkway) interchange with enhanced landscaping & hardscape inspired by the 1-15 Branding & Visioning Plan. Benefit: This project meets the City-wide long-term goals as identified in the Quality of Life Master Plan to include a Healthy and Livable City and Economic Prosperity. Core Value: Healthy and Livable City Project Status: This project is in the design phase with construction scheduled for Summer 2025. Department: Public Works - Account No. 210.265.999.5800.PW17-19 / 690 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 286,748 71,812 358,560 5804-Construction 2,395,829 2,395,829 5805-Construction Engineering 350,000 350,000 5802-Design & Environmental 354,593 171,312 525,905 Total Expenditures 641,342 2,988,953 3,630,295 Source of Funds: 4002-Measure S 4078-Reimbursement-Pechanga IGA 509,989 2,500,000 620,306 1,130,295 2,500,000 Total Funding 3,009,989 620,306 3,630,295 Future Operating & Maintenance Costs: Total Operating Costs 1 1 62,046 63,289 65,188 67,144 Notes : 1. Operating & Maintenance costs reflect the ongoing irrigation and landscape maintenance required by CalTrans. 128 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program INTERSTATE 15 CORRIDOR BRANDING AND VISIONING IMPROVEMENTS Infrastructure Project Project Description: This project includes the beautification of the Interstate 15 Corridor within the City of Temecula limits by implementing the 1-15 Branding and Visioning Plan. The improvements include, but are not limited to, enhanced and themed landscaping, gateway monumentations, sculptures, interchanges focal art, and bridge treatments. The project will be implemented in phases and as funds become available. The initial appropriation is to develop a phasing plan in coordination with the California Department of Transportation (Caltrans). Benefit: This project will beautify the 1-15 Corridor within the City and promote the Temecula brand. Core Value: Economic Prosperity Project Status: Project not yet started. Department: Public Works - Account No. 210.265.999.5800.PWBV-24 Level: I -15 BRANDING & VISIONING 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 50,000 50,000 50,000 50,000 200,000 5802-Design & Environmental 150,000 150,000 150,000 150,0001 600,000 Total Expenditures 200,000 200,000 200,000 200,000 800,000 Source of Funds: 4002-Measure S 4452-Unspecified 200,000 200,000 200,000 200,000 200,000 600,000 Total Funding - 200,000 200,000 200,000 200,000 800,000 Future Operating & Maintenance Costs: Total Operating Costs 129 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program LIBRARY ALTERNATE EMERGENCY OPERATIONS CENTER ENHANCEMENTS Infrastructure Project Project Description: The Ronald H. Roberts Temecula Public Library was opened in 2006 to serve the residents of Temecula and surrounding areas. In 2021, the Library was designated as the City of Temecula's Alternate Emergency Operations Center (A-EOC). This project will enhance the library's current technology offerings to provide for a secure, reliable, state-of-the-art equipment for conducting emergency operations. Benefit: This project will equip the library with the requisite technology to provide for an operational Alternate Emergency Operations Center. Core Value: A Safe and Prepared Community Project Status: Project is expected to be completed during Fiscal Year2024- 25. Department: Information Technology - Account No. 210.265.999.5800.IT24- 02 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5809-Information Technology 700,000 700,000 Total Expenditures 700,000 700,000 Source of Funds: 4247-DIF-Library Facilities I I 700,000 I 700,000 Total Funding 700,000 700,000 Future Operating & Maintenance Costs: Total Operating Costs 130 Alk The Heart of Southern California Wine Country LIBRARY TECHNOLOGY ENHANCEMENTS Infrastructure Project Project Description: The Ronald H. Roberts Temecula Public Library was opened in 2006 to serve the residents of Temecula and surrounding areas. Since then, it has become the busiest Library in the Riverside County System and offers advanced technology services to its patrons. This project will replace aging equipment and enhance the library's technology offerings to ensure that the patrons have access to a secure, reliable, state-of-the-art facility for many years to come. Benefit: This project will offer improvements to the patron experience and to the reliability of the library technology systems. Core Value: Healthy and Livable City Project Status: Project is expected to be complete during Fiscal Year2024-25 Department: Information Technology - Account No.210.265.999.5800.IT24- 01 Level City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5540-Information Technology 240,000 240,000 Total Expenditures 240,000 240,000 Source of Funds: 4247-DIF-Library Facilities I I 240,000 I 240,000 Total Funding 240,000 240,000 Future Operating & Maintenance Costs: Total Operating Costs 131 Alk The Heart of Southern California Wine Country LOCAL ROADWAY SAFETY PLAN UPDATE Infrastructure Project Project Description: This project is to update the City's Local Roadway Safety Plan (LRSP) to bring it in line with federal safety plan requirements. The LRSP creates a framework to systematically identify and analyze safety problems and recommend safety improvements. Benefit: This project will provide a prioritized list of improvements and actions that can demonstrate a defined need and contribute to a proactive approach for addressing local safety needs. Core Value: Transportation Mobility and Connectivity Project Status: This is a new project Department: Public Works - Account No. 210.265.999.5800.NEW (PW25-03) Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program as The Heart of Southern California Wine Cou 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 5,000 5,000 5802-Design & Environmental 150,000 150,000 Total Expenditures 155,000 155,000 Source of Funds: 4025-Grants 4002-Measure S 120,000 35,000 120,000 35,000 Total Funding 155,000 155,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Grant source: Safe Streets and Roads for All (SS4A) 132 Alk The Heart of Southern California Wine Country MARGARITA RECREATION CENTER Infrastructure Project Project Description: This project consists of the construction of a new recreation center in Mike Naggar Community Park in place of the former YMCA building. The project includes the demolition of the existing building and pool, constructing a new building and pool was determined by a Community Needs Assessment and available budget. The Information Technology component includes camera system infrastructure, access control, Public Wi-Fi and other identified technology needs. Benefit: This project will provide the City a new facility to meet the increasing demands of recreational programs. Core Value: Healthy and Livable City Project Status: Construction was completed in December of 2023. The facility is scheduled to be fully open to the public in Spring of 2024. Department: Public Works - Account No. 210.265.999.5800.PW17-21 / 692 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 562,232 16,726 578,957 5804-Construction 9,545,846 281,587 9,827,432 5805-Construction Engineering 6,130 516 6,646 5802-Design & Environmental 1,269,345 52,338 1,321,682 5809-Information Technology 775,737 91,054 866,790 Total Expenditures 1 12,159,2881 442,219 12,601,508 Source of Funds: 4481-Capital Financing 6,405,000 6,405,000 4244-DIF-Park & Rec Improvements 600,000 600,000 4256-DIF-Police Facilities 111,256 25,744 137,000 4002-Measure S 5,043,032 416,476 5,459,508 Total Funding 12,159,288 442,220 12,601,508 Future Operating & Maintenance Costs: Total Operating Costs 1 1 1,488,628 1,544,079 1,603,504 1,665,220 Notes : 1. Capital Financing reflects the Temecula Public Financing Authority's 2018 Lease Financing arrangement which provides $6.4M in funding, with a term of 15 years at an interest rate of3.42%, repaid by the General Fund. (Loan Paid off in 2022) 2. Future Operating and Maintenance costs reflect the staffing, utilities and other service costs and are reflected in the Temecula Community Services District 5-Year Financial Forecast. 133 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program MARY PHILLIPS SENIOR CENTER ENHANCEMENT AND RENOVATION Infrastructure Project Project Description: This project includes the enhancement and renovation of the Mary Phillips Senior Center. Exterior improvements include new roof, siding, soffit, fascia, trim, doors and windows. Interior improvements include lighting, acoustics, trim, flooring, bookcase, and finishes. The project includes improvements in accessibility throughout the building interior and site in accordance with latest ADA requirements. Benefit: This project updates and enhances the appearance and improves safety and extends the life of the facility. Core Value: Healthy and Livable City Project Status: This project is complete. Department: Public Works - Account No. 210.265.999.5800.PW20-13 / 782 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 297,013 25,694 322,707 5804-Construction 1,641,305 1,641,305 5805-Construction Engineering 181,344 181,344 5802-Design & Environmental 99,333 99,333 Total Expenditures 2,218,995 25,694 2,244,689 Source of Funds: 4140-CDBG 1,477,200 (419,616) 1,057,584 4350-Facilities Replacement Fund 279,694 279,694 4002-Measure S 952,411 (45,000) 907,411 Total Funding 2,709,305 (464,616) 2,244,689 Future Operating & Maintenance Costs: Total Operating Costs I I I Notes : 1. Adjusted budget variance includes Council approved Substantial Amendment to the2022-23 CDBG Annual Action Plan for the Reallocation of CDBG Funds to the Mary Phillips Senior Center dated 11/15/2022 for total CDBG funding of $1,057,583.78. Additionally Measure S funds in the amount of $45,000 were reprogrammed in Fiscal Year2023-24 from the Mary Phillips Senior Center Enhancement and Renovation to the Mary Phillips Senior Center Outdoor Recreation Area. 134 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program MEDIANS & TRAFFIC CALMING IMPROVEMENTS - CITYWIDE Infrastructure Project Project Description: This project includes the design and construction of raised concrete medians (with stamped concrete), neighborhood identification medians, pedestrian bulb -outs, striping improvements and other features to provide neighborhood traffic calming at various locations throughout the City. Benefit: This project provides neighborhood traffic calming, enhances pedestrian, bicycle safety and the quality of life at various locations within the City. Core Value: A Safe and Prepared Community Project Status: This project has a priority list of locations and will be constructed in priority order. Department: Public Works - Account No. 210.265.999.5800.PWTC-20 / 704 Level: II Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 55,000 55,000 5804-Construction 77,898 679,003 756,900 5805-Construction Engineering 50,000 50,000 5802-Design & Environmental 29,900 85,100 115,000 Total Expenditures 107,798 869,103 976,900 Source of Funds: 4242-DIF-Street Improvements 40,000 40,000 4002-Measure S 231,900 680,000 911,900 4438-Reimbursements 25,000 25,000 Total Funding 271,900 705,000 976,900 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Reimbursements reflects contribution from the Temecula Valley Unified School District. 135 Alk The Heart of Southern California Wine Country MURRIETA CREEK IMPROVEMENTS Infrastructure Project Project Description: This project reflects the United States Army Corps of Engineers (USACE) and Riverside County Flood Control (RCFC) improvements to Murrieta Creek within City limits. This project also include the study, design, and construction of alternatives to reconfigure the existing Southside Parking Lot which has been impacted by the Riverside County Flood Control's acquisition of a portion of the parking lot. Lighting will be added to the trail on the east side of Murrieta Creek between First Street and Rancho California Road. The installation of a RCFC Storm Drain Catch Basin No.100 on Pujol Street was added. Benefit: This project helps prevent flooding of Old Town Temecula. Core Value: A Safe and Prepared Community Project Status: Construction for the Southside parking lot reconfiguration is complete. Construction of the trail lighting is anticipated in FY2025-26. Department: Public Works - Account No. 210.265.999.5800.PW15-07 / 735 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 164,374 149,254 15,000 328,628 5804-Construction 122,738 1,784,885 1,907,623 5802-Design & Environmental 261,068 49,332 310,400 5601-Furnishings & Equipment 129,387 613 130,000 5809-Information Technology 30,950 130,000 160,950 Total Expenditures 708,517 2,114,084 15,000 2,837,601 Source of Funds: 4245-DIF-Corporate Facilities 130,000 15,000 145,000 4001-General Fund 135,858 135,858 4002-Measure S 53,791 1,386,867 1,440,658 4438-Reimbursements 911,085 5,000 916,085 4145-TEAM 59,801 140,199 200,000 Total Funding 1,160,535 1,662,066 15,000 2,837,601 Future Operating & Maintenance Costs: Total Operating Costs 136 f Alk The Heart of Southern California Wine Country MURRIETA CREEK IMPROVEMENTS Infrastructure Project City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: I Actuals I Adjusted Budget Projected Projected Projected Projected I Cost Notes : 1. The City Council approved an Agreement for Sale and Purchase with Riverside County Flood Control and Water Conservation District (RCFC&WCD) for the purchase of a portion of the Southside Parking Lot on July 28, 2020. The Riverside County Board of Supervisors approved the agreement on March 23, 2021. The City received the total purchase price and the Cost to Cure in the amount of $771,136.16 for the reconfiguration of the Southside Parking Lot. 2. Reimbursements include $834,336 from Riverside County Flood Control and Water Conservation District (RCFC&WCD) and$28,249 from Frontier Communications for the purchase of an easement along Pennypickle's Workshop and Murrieta Creek. 3. TEAM - Temecula Energy Efficiency Asset Fund. 137 Alk The Heart of Southern California Wine Country NICOLAS ROAD MULTI -USE TRAIL EXTENSION Infrastructure Project Project Description: This project includes the design, environmental documents and permits, construction, improvements and extension of the Nicolas Road Multi -Use Trail from the Seraphina easterly boundary to Joseph Road. The improvements include approximately 1,800 LF of 10' wide Class I Bikeway. Benefit: This project improves pedestrian and biking circulation on the northern side of the City Core Value: Transportation Mobility and Connectivity Project Status: The trail is being constructed by the developer as part of Nicolas Road Extension in 2024. Department: Public Works - Account No. 210.265.999.5800.PWNT-25 / 785 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 1,500,000 1,500,000 Total Expenditures 1,500,000 - 1,500,000 Source of Funds: 4427-Assembly Bill 2766 450,000 450,000 4051-DIF-Open Space & Trails 300,000 300,000 4170-Measure A 600,000 600,000 4002-Measure S 150,000 150,000 Total Funding 300,000 1,200,000 1,500,000 Future Operating & Maintenance Costs: Total Operating Costs 138 f Alk The Heart of Southern California Wine Country OLD TOWN PARKING IMPROVEMENTS Infrastructure Project Project Description: This project will include the design and eventual construction of parking improvements within the Old Town district. The Old Town Parking Management Plan outlines a number of parking strategies that can be implemented in Old Town over time. Additional parking improvements are anticipated to be constructed as part of the long-term parking management strategy. Benefit: This project will satisfy the City's Core Values of a Healthy and Livable City and Economic Prosperity. Core Value: Healthy and Livable City Project Status: Main Street Lots Completed Construction in January 2025. Analysis of other potential parking improvements is ongoing. Department: Public Works - Account No. 210.265.999.5800.PW17-15 / 694 Level: III City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 98,888 16,112 115,000 5804-Construction 405,000 405,000 5802-Design & Environmental 1156,6541728,346 1885,000 Total Expenditures 1 255,5421 1,149,458 1,405,000 Source of Funds: 4001-General Fund 4002-Measure S 1,000,000 405,000 1,000,000 405,000 Total Funding 1,000,000 405,000 1,405,000 Future Operating & Maintenance Costs: Total Operating Costs 139 Alk The Heart of Southern California Wine Country OLD TOWN SECURITY CAMERA & SOUND SYSTEM Infrastructure Project Project Description: This project provides for the installation of security cameras, the upgrade of the sound system, and improvements to the fiber optic and Wi-Fi networks throughout Old Town. Benefit: To protect property and life and enhance the ambiance/experience of Old Town. Core Value: Healthy and Livable City Project Status: This project will be completed in Fiscal Year 2024-25. Department: Information Technology - Account No.210.265.999.5800.IT20- 01 / 780 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5802-Design & Environmental 50,000 50,000 5610-Equipment 1,068,986 141,014 1,210,000 Total Expenditures 1,118,986 141,014 1,260,000 Source of Funds: 4245-DIF-Corporate Facilities 4002-Measure S 548,651 570,335 51,349 89,665 600,000 660,000 Total Funding 1,118,986 141,014 1,260,000 Future Operating & Maintenance Costs: Total Operating Costs 75,000 75,000 75,000 75,000 Notes : 1. Operating & Maintenance costs reflect the ongoing software and equipment maintenance costs associated with the security camera system. 140 Adk f The Heart of Southern California Wine Country OLD TOWN TEMECULA PARKLETS PROGRAM Infrastructure Project Project Description: This project will provide for modular parklets located throughout Old Town Temecula, including traffic flow enhancements such as bollards or other traffic calming measures. Benefit: A program that continues to enhance the livability of Old Town through small urban parklets. Core Value: Healthy and Livable City Project Status: This project is underway and has been soliciting community input on locations and styling of the parklets. Department: Community Development - Account No. 210.265.999.5800. CD24-01 Level City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 24,762 275,238 300,000 5802-Design & Environmental 44,103 105,897 150,000 Total Expenditures 68,8661 381,135 450,000 Source of Funds: 4110-Community Reinvestment Program 68,866 381,134 450,000 Total Funding 68,866 381,134 450,000 Future Operating & Maintenance Costs: Total Operating Costs 141 Adk f The Heart of Southern California Wine Country PAVEMENT MANAGEMENT PROGRAM UPDATE Infrastructure Project Project Description: This project consists of evaluating the conditions of all public roadways within the City (approximately382 miles) evaluating and upgrading the City's existing Pavement Management Program software, and providing capital improvement planning for a five-year Capital Improvement Program (CIP) budget. Benefit: This project will provide the City with a roadmap for maintaining its roadways. Core Value: A Safe and Prepared Community Project Status: Data collection, compilation, and analysis took place January 2024. Study is performed every five years. Department: Public Works - Account No. 210.265.999.5800.PW23-09 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 54,941 20,059 100,000 175,000 5802-Design & Environmental 65,919 234,081 114,9801 414,980 Total Expenditures 120,859 254,141 214,980 589,980 Source of Funds: 4002-Measure S 4102-RMRA 120,859 85,020 100,000 169,121 114,980 185,020 404,960 Total Funding 120,859 254,141 214,980 589,980 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Road and Repair Accountability Act (RMRA) 142 Alk The Heart of Southern California Wine Country PEDESTRIAN RAMP UPGRADES - CITYWIDE Infrastructure Project Project Description: This project will install American with Disabilities Act (ADA) compliant ramp upgrades at school crossing sites throughout the City. Benefit: This project improves pedestrian safety and circulation throughout the City. Core Value: Transportation Mobility and Connectivity Project Status: Project is estimated to be complete in Fiscal Year2024-25. Department: Public Works - Account No. 210.265.999.5800.PW23-11 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 50 16,990 17,040 5804-Construction 250,000 250,000 5805-Construction Engineering 17,960 7,960 Total Expenditures 501 274,950 275,000 Source of Funds: 4662-HSIP-Highway Safety 225,000 225,000 Improvement Program 4002-Measure S 50 49,950 50,000 Total Funding 50 274,950 275,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023 2. City match is $25,000 based on the HSIP application and grant. Additional appropriated local funds are for administration 143 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program SANTA GERTRUDIS CREEK PHASE II - MARGARITA UNDER -CROSSING Infrastructure Project Project Description: This project includes the design, environmental, and construction of the under -crossing in Santa Gertrudis Creek at Margarita Road to connect to the pedestrian/bicycle trail. The under -crossing at Margarita Road will provide a continuous paved trail along the Santa Gertrudis Creek at this location. Benefit: The project provides a safe pedestrian and bicycle trail connection for the community. Core Value: Transportation Mobility and Connectivity Project Status: Project to be completed by 03/31/2025 Department: Public Works - Account No. 210.265.999.5800.PW19-04 / 732 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 406,055 41,945 448,000 5804-Construction 7,895 3,915,164 3,923,059 5805-Construction Engineering 10,194 471,304 481,498 5802-Design & Environmental 542,370 122,945 665,314 5700-Land Acquisition 15,480 6,020 21,500 5806-MSHCP 9,832 50,920 60,752 Total Expenditures 991,826 4,608,297 5,600,123 Source of Funds: 4051-DIF-Open Space & Trails 1,562,908 1,562,908 4002-Measure S 776,839 1,758,376 2,535,215 4483-Senate Bill 1 1,502,000 1,502,000 Total Funding 776,839 4,823,284 5,600,123 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. California Transportation Commission (CTC) adopted the2019 Active Transportation Program Augmentation on January30 - 31, 2019. 144 Adk f The Heart of Southern California Wine Country SIDEWALKS - CITYWIDE Infrastructure Project Project Description: This project will include the construction of sidewalks at various locations throughout the City. A study to identify and prioritize areas with missing sidewalks was completed as part of the Trails and Bikeways Master Plan Update in Fiscal Year2015-16. Based on the study and the available resources, sidewalks will be constructed in the selected areas considering economy of scale and proximity to private development. Benefit: This project will provide walking surfaces for pedestrians. Core Value: Transportation Mobility and Connectivity Project Status: Funds remaining in this project will be used to add sidewalks to the west side of Ynez Road between Tiera Vista and Rancho Highland. That project, PW17-28 is under construction and will complete Spring 2025 Department: Public Works - Account No. 210.265.999.5800.PWSW-02 / 708 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 728,968 728,968 5804-Construction 146,315 291,115 437,430 5805-Construction Engineering 4,412 20,000 24,412 5802-Design & Environmental 290,104 11,662 301,766 Total Expenditures 1,169,799 322,777 1,492,575 Source of Funds: 4001-General Fund 4002-Measure S 375,000 774,922 342,653 375,000 1,117,575 Total Funding 1,149,922 342,653 1,492,575 Future Operating & Maintenance Costs: Total Operating Costs 145 Alk The Heart of Southern California Wine Country SIDEWALKS - OLD TOWN IMPROVEMENTS Infrastructure Project Project Description: This project involves adding and improving sidewalks in Old Town. The improvement areas include installing eight additional Old Town decorative streetlights on Moreno Road and Mercedes Street (PW22- 17). The City will continue evaluate locations to improve sidewalk in Old Town Temecula. Benefit: Adding sidewalk and other improvements in Old Town promotes a Healthy and Livable City and Transportation Mobility and Connectivity. Core Value: Transportation Mobility and Connectivity Project Status: Construction of the streetlights was completed in FY23-24. Department: Public Works - Account No. 210.265.999.5800.PWOT-03 / 766 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 395,134 18,765 413,899 5804-Construction 1,292,846 (53,330) 1,239,516 5805-Construction Engineering 37,179 37,179 5802-Design & Environmental 133,976 4,015 137,991 5610-Equipment 42,500 (42,500) - Total Expenditures 1 1,901,633 (73,049) 1,828,585 Source of Funds: 4140-CDBG 849,426 849,426 4170-Measure A 140,000 140,000 4002-Measure S 1,138,877 (299,719) 839,159 Total Funding 2,128,303 (299,719) 1,828,585 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Negative adjusted budget in FY2024-25 driven by reprogramming of Measure S Funds to Sixth Street Improvements. 146 Adk f The Heart of Southern California Wine Country SIDEWALKS-PAUBA ROAD Infrastructure Project Project Description: This project will include the construction of sidewalks along Pauba Road from Elinda Road to Showalter Road. Benefit: This project will provide walking surfaces for pedestrians. Core Value: Transportation Mobility and Connectivity Project Status: This section of Pauba Road was identified in the City's Sidewalk Gap Study. Construction is anticipated to commence in Fiscal Year 2024-2025. Department: Public Works - Account No. 210.265.999.5800.PWSW-02-02 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 43,966 46,034 80,000 170,000 5804-Construction 737,124 737,124 5805-Construction Engineering 60,000 60,000 5802-Design & Environmental 22,638 47,362 20,000 90,000 Total Expenditures 66,604 890,520 100,000 1,057,124 Source of Funds: 4002-Measure S 4437-Senate Bill 821 65,316 529,208 100,000 362,600 694,524 362,600 Total Funding 65,316 891,808 100,000 1,057,124 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Grant funding source reflects the 2023 Senate Bill 821, Bicycle and Pedestrian Facilities Program grant. 147 Adk f The Heart of Southern California Wine Country SIXTH STREET IMPROVEMENTS Infrastructure Project Project Description: This project involves improving the south side of Sixth Street from Old Town Front Street to Mercedes Street. The improvements include adding sidewalks, rolled curb and gutter, paving, streetlights, and trees in accordance with the Old Town Specific Plan. Benefit: Adding sidewalk and other improvements in Old Town promotes a Healthy and Livable City and Transportation Mobility and Connectivity. Core Value: Transportation Mobility and Connectivity Project Status: Construction is complete. Department: Public Works - Account No. 210.265.999.5800.PWOT-03- 01/PW22-16 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program i Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 26,405 157,136 183,541 5804-Construction 49,806 800,250 850,056 5805-Construction Engineering 18,008 18,008 5802-Design & Environmental 42,634 (1,913) 40,721 Total Expenditures 118,844 973,481 1,092,326 Source of Funds: 4110-Community Reinvestment 115,000 115,000 Program 4002-Measure S 142,486 834,839 977,326 Total Funding 142,486 949,839 1,092,326 Future Operating & Maintenance Costs: Total Operating Costs 148 f Alk The Heart of Southern California Wine Country SOUTH SIDE SENIOR CENTER FOR ACTIVE ADULTS Infrastructure Project Project Description: This project was identified in the City's Quality of Life Master Plan 2040 as a future project to better serve the senior community on the south side of Temecula. Benefit: This project supports healthy and active lifestyles by providing opportunities for seniors to participate in activities and classes. Core Value: Healthy and Livable City Project Status: Conceptual design for this project will begin in Fiscal Year 2025-26. Department: Public Works - Account No. 210.265.999.5800.PW24-05 Level: III City of Temecula Fiscal Years 2026-30 Capital Improvement Program Aft 3-- The Heart of Southern California Wine Country 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5802-Design & Environmental 100,000 100,000 Total Expenditures 100,000 100,000 Source of Funds: 4244-DIF-Park & Rec Improvements 100,000 100,000 Total Funding 100,000 100,000 Future Operating & Maintenance Costs: Total Operating Costs 149 Alk The Heart of Southern California Wine Country STORM DRAIN PIPE LINING Infrastructure Project Project Description: This project will line all City -owned metal storm drain pipe (e.g. corrugated metal pipe (CMP), spiral rib pipe (SRP), etc.), which may be susceptible to corrosion failure. The estimated total length of metal storm drain pipe in the City's inventory is approximately3.6 miles (19,050 feet). The lining may include spray lining or slip lining to replace the metal with a smoother, more stable surface. Benefit: This project maintains our current stormwater infrastructure. Core Value: A Safe and Prepared Community Project Status: Identification and design of project(s) will be based on findings of the Citywide Storm Drain Masterplan and investigations from field observations. Department: Public Works - Account No. 210.265.999.5800.PWSD-23 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2024-25 Adjusted 2025-26 Proposed 2026-27 Budget Projected 2027-28 2028-29 Projected Projected 2029-30 Projected Total Project Cost 5801-Administration 12,186 33,314 57,500 199,675 199,675 502,350 5804-Construction 321,000 381,000 1,363,500 1,363,500 3,429,000 5805-Construction Engineering 37,500 37,500 133,950 133,950 342,900 5802-Design & Environmental 97,500 37,500 106,250 106,250 347,500 5806-MSHCP 19,050 19,050 66,675 66,675 171,450 Total Expenditures 12,186 508,364 532,550 - 1,870,050 - 1,870,050 4,793,200 Source of Funds: 4002-Measure S 1 12,1861 508,364 532,550 1,870,050 1,870,0501 4,793,200 Total Funding 1 12,1861 508,364 532,550 - 1,870,050 - 1,870,0501 4,793,200 Future Operating & Maintenance Costs: Total Operating Costs 150 Adk f The Heart of Southern California Wine Country TEMECULA CREEK FENCING Infrastructure Project Project Description: This project will include the construction of a commercial grade wrought iron fence, or a similar type, along the north side of Temecula Creek between Pechanga Parkway and east of Jedediah Smith Road. Benefit: This project will deter homeless encampments in Temecula Creek and protect the City's mitigation sites. Core Value: Healthy and Livable City Project Status: Projected construction FY2025-26. Department: Public Works - Account No. 210.265.999.5800.PW23-23 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 9,786 105,214 115,000 5804-Construction 315,000 318,000 633,000 5805-Construction Engineering 30,000 30,000 5802-Design & Environmental 40,000 40,000 Total Expenditures 9,786 490,214 318,000 818,000 Source of Funds: 4110-Community Reinvestment 9,786 490,214 500,000 Program 4002-Measure S 318,000 318,000 Total Funding 9,786 490,214 318,000 818,000 Future Operating & Maintenance Costs: Total Operating Costs 151 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program TRAFFIC SIGNAL - PEDESTRIAN SIGNAL EQUIPMENT UPGRADE PHASE 2 - CITYWIDE Infrastructure Project Project Description: This project will install pedestrian countdown signal heads and upgrade traffic signal controllers to improve safety and operations at signalized intersections Citywide including the Butterfield Stage Road, Margarita Road, Meadows Parkway, Nicolas Road, Pechanga Parkway, Ring Road, and Ynez Road corridors. Benefit: This project improves pedestrian safety and traffic circulation throughout the City. Core Value: Transportation Mobility and Connectivity Project Status: This project is on -going. Department: Public Works - Account No. 210.265.999.5800.PW23-12 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 50 24,950 25,000 5804-Construction 484,500 484,500 5805-Construction Engineering 63,200 63,200 Total Expenditures 50 572,650 572,700 Source of Funds: 4662-HSIP-Highway Safety 492,930 492,930 Improvement Program 4002-Measure S 50 79,720 79,770 Total Funding 50 572,650 572,700 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023. 2. City match is $54,770 based on the HSIP application and grant. Additional appropriated local funds are for administration 152 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program TRAFFIC SIGNAL - SAFETY LIGHTS AND SIGNAL COMMUNICATIONS UPGRADE- CITYWIDE Infrastructure Project Project Description: This project will upgrade all traffic signals safety lights to LED and install communication system upgrades to42 signals citywide. Upgraded traffic signal improvements include LED street lights, signal wiring, vehicle heads, controller cabinets, fiber cable, ethernet switches, wireless radios, and related communication equipment to improve safety and operations with optimized traffic signal timing coordination. Signal timing coordination will be improved along the Butterfield Stage Road and Ynez Road corridors. Benefit: This project will upgrade the City's traffic signal safety lights to LED, Sustainable and Resilient City, and upgrade traffic signal communication system equipment to improve mobility and connectivity. Core Value: Transportation Mobility and Connectivity Project Status: This project is on -going. Department: Public Works - Account No. 210.265.999.5800.PW23-13 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 50 19,950 20,000 5804-Construction 2,661,397 2,661,397 5805-Construction Engineering 225,000 225,000 5802-Design & Environmental 89,753 259,751 349,503 Total Expenditures 89,803 3,166,098 3,255,900 Source of Funds: 4243-DIF-Traffic Signals 594,590 594,590 4662-HSIP-Highway Safety 2,441,310 2,441,310 Improvement Program 4002-Measure S 220,000 220,000 Total Funding I - 3,255,900 - 3,255,900 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023. 153 Alk The Heart of Southern California Wine Country TRAFFIC SIGNAL FIBER OPTIC EXTENSION Infrastructure Project Project Description: This project will provide the design and installation of fiber optic communications including conduit, cable, pullboxes, and related communication equipment to traffic signal operations. Various signalized intersections will be improved along the Margarita Road, Meadows Parkway, Date Street, and Nicolas Road corridors. Benefit: This project will upgrade the City's fiber optic communications and traffic signal system equipment throughout the City. This project builds out the City's traffic signal fiber communications network as defined in the City's Communications System Master Plan. This project will enhance the City's core value of a safe and prepared community, as well as transportation mobility and connectivity as it relates to traffic signal communication. Core Value: A Safe and Prepared Community Project Status: The project is currently in design and design completion is expected in Spring 2026. Department: Public Works - Account No. 210.265.999.5800.PW25-01 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 15,000 60,000 75,000 5804-Construction 1,350,000 1,350,000 5802-Design & Environmental 1250,000 250,000 Total Expenditures 265,000 - 1,410,000 1,675,000 Source of Funds: 4256-DIF-Police Facilities 649,000 649,000 4662-HSIP-Highway Safety 552,850 552,850 Improvement Program 4002-Measure S 265,000 208,150 473,150 Total Funding 265,000 552,850 857,150 1,675,000 Future Operating & Maintenance Costs: Total Operating Costs I I I Notes : 1. Highway Safety Improvement Program - Cycle 12 awarded on February 21, 2025. 2. City match is $552,850 based on the HSIP application and grant. Additional appropriated local funds are for administration 154 Adk f The Heart of Southern California Wine Country UTILITY UNDERGROUNDING - CITYWIDE Infrastructure Project Project Description: This project includes the undergrounding of utilities at various locations throughout the City to extend the undergrounding done by the developers beyond the limits of their developments. The project will continuously look for additional locations to underground power poles with the goal of beautifying Temecula. The funding for this project covers the west side of Old Town Front Street between Fourth Street and Fifth Street (including about 25 feet of missing improvements). Benefit: Undergrounding overhead lines will help make the City a Sustainable and Resilient City in the event of natural disasters and wild fires. Core Value: A Sustainable and Resilient City Project Status: Project is complete. Department: Public Works - Account No. 210.265.999.5800.PWUG-04 / 776 Level: II City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 24,501 7,374 31,875 5804-Construction 119,784 89,233 209,017 5802-Design & Environmental 3,483 3,483 Total Expenditures 147,767 96,608 244,375 Source of Funds: 4002-Measure S 1 244,3751 1 244,375 Total Funding 1 244,375 244,375 Future Operating & Maintenance Costs: Total Operating Costs 155 f Alk The Heart of Southern California Wine Country VACANT PARCEL CLEAN-UP AND BEAUTIFICATION Infrastructure Project Project Description: A project to clean-up vacant parcels and beautify other parcels throughout the City. Benefit: To work towards the Quality of Life Master Plan aspiration to be a City that continues to maintain pristine landscaping at parks, along roadways and at public facilities. Core Value: A Sustainable and Resilient City Project Status: This project is in the initial planning phase. Department: Community Development - Account No. 210.265.999.5800. CD24-02 Level City of Temecula Fiscal Years 2026-30 Capital Improvement Program Aft 3— The Heart of Southern California Wine Country 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 360,000 360,000 Total Expenditures 360,000 360,000 Source of Funds: 4110-Community Reinvestment Program 360,000 360,000 Total Funding - 360,000 360,000 Future Operating & Maintenance Costs: Total Operating Costs 156 : I,' I ko 4 krL 4 Zv, ,,, M ko 1j 3FAj 1 [01 kI M!j Ole l The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program Parks and Recreation Projects N`GO�pc�pU © �O � ZE 0g-1� ?Of` N ?G� J RO �V a D E � F pNO DR <O 0�' S So%.ANA Wy C aD A O y MA ROP F L 9 p0 `p,,1FORNIA {tO p �O O G Ib P4 k QP� A �O .j. m �O VIST y P oR 2 KP ` SA < 9 �P�?g•`OO SpNjwGo RO 9 a O f A Z y� r � O Z O,XO,-ARO �s r OEQ SEMEcut p pKNV JP`� R A NCh A A OC ti 9 c4' A y�y 0O p.NK PKV Q v O 0.� 1�y 0 O v v �O N Q� A 9 A 0 Map ID Description 1 Children's Museum Enhancement Project 2 Community Recreation Center Splash Pad & Shade Structures 3 Dog Park Renovation 4 Empire Creek Improvements 5 Harveston Community Park Building Renovation & Expansion 6 Long Canyon Creek Park Restrooms 7 Pickleball Courts Map ID Description 8 Ronald Reagan Sports Park Hockey Rink 9 Ronald Reagan Sports Park Restroom Expansion & Renovation 10 Ronald Reagan Sports Park Skate Park 11 Temecula Duck Pond Spillway Project 12 Uptown Temecula Sports Park 13 Vail Ranch Park Restrooms 158 Adk f The Heart of Southern California Wine Country CHILDREN'S MUSEUM ENHANCEMENT PROJECT Parks/Recreation Project Project Description: As exhibits and play experiences in the Children's Museum become outdated, this project allows for the re -design and replacement of exhibit areas or refurbishment of existing exhibits. This process provides the museum visitors new and updated play experiences. Benefit: This project enhances existing exhibit areas of the Children's Museum. Core Value: Healthy and Livable City Project Status: A project list has been developed. Projects are completed on an on -going basis as funding becomes available. Department: TCSD - Account No. 210.265.999.5800.PW19-05 / 125 Level: II City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 432 9,568 10,000 5804-Construction 336,368 184,722 521,090 5802-Design & Environmental 14,000 14,000 Total Expenditures 336,799 208,290 545,090 Source of Funds: 4244-DIF-Park & Rec Improvements 4002-Measure S 145,090 400,000 145,090 400,000 Total Funding 545,090 545,090 Future Operating & Maintenance Costs: Total Operating Costs 159 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program COMMUNITY RECREATION CENTER SPLASH PAD & SHADE STRUCTURES Parks/Recreation Project Project Description: This project provides for the conversion of the CRC's kiddie pool into a splash pad, and the addition of shade structures throughout the pool area. Benefit: This project will provide City residents an additional splash pad for enhanced recreational opportunities. Core Value: Healthy and Livable City Project Status: Project Completed 11/15/2024 Department: Public Works - Account No. 210.265.999.5800.PW21-07 / 205 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 230,242 75,000 305,242 5804-Construction 1,190,696 773,209 1,963,905 5805-Construction Engineering 17,408 2,592 20,000 5802-Design & Environmental 244,293 43,707 288,000 Total Expenditures 1,682,640 894,508 2,577,147 Source of Funds: 4002-Measure S 1,682,639 894,508 2,577,147 Total Funding 1 1,682,639 894,508 2,577,147 Future Operating & Maintenance Costs: Total Operating Costs 160 Alk The Heart of Southern California Wine Country DOG PARK RENOVATION Parks/Recreation Project Project Description: This project is to design and construct a dog park at Mike Naggar Community Park. The dog park will include small and large dog pens, seating, drinking fountains, shade, concrete hardscape, and landscaping in addition to ADA access. Benefit: This project protects the City's vast investment in parks and open space facilities. In addition, this project satisfies the City's Core Values of a Healthy and Livable City and Responsive City Government. Core Value: Healthy and Livable City Project Status: Project completed July 2024. Department: Public Works - Account No. 210.265.999.5800.PW21-14 / 207 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 279,952 23,000 302,952 5804-Construction 595,349 35,166 630,515 5805-Construction Engineering 11,130 8,870 20,000 5802-Design & Environmental 82,538 22,478 105,016 5809-Information Technology 19,517 100,000 119,517 Total Expenditures 1 988,4861 189,514 1,178,000 Source of Funds: 4245-DIF-Corporate Facilities 100,000 100,000 4025-Grants 200,000 247,126 447,126 4002-Measure S 541,360 89,514 630,874 Total Funding 741,360 436,640 1,178,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Proposition 68 Grant from the California Department of Parks and Recreation ($247,126). 2. American Rescue Plan Act (ARPA), signed into law March 11, 2021, grant through the County of Riverside ($200,000). 3. Project complete, no changes. 161 Alk The Heart of Southern California Wine Country EMPIRE CREEK IMPROVEMENTS Parks/Recreation Project Project Description: This project repairs and reinforces the earth and berms between specific park sites and flood control channels, and fortifies the banks to prevent further erosion into the park sites. A report for Friendship Park (formerly Pala Park), Mike Naggar Community Park (formerly Margarita Community Park), and Long Canyon Creek Park was developed. This study will serve as a basis for project design, environmental clearance, and construction at each location. Benefit: This project prevents further erosion into park site. Core Value: Healthy and Livable City Project Status: Start preliminary design in FY25-26. Department: Public Works - Account No. 210.265.999.5800.PW23-20 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 48,940 48,940 5804-Construction 51,424 3,822,532 3,873,956 5805-Construction Engineering 23,584 175,000 198,584 5802-Design & Environmental 800,000 800,000 5806-MSHCP 193,699 193,699 Total Expenditures 923,948 4,191,231 5,115,179 Source of Funds: 4002-Measure S 4452-Unspecified 923,949 4,191,230 923,949 4,191,230 Total Funding - 923,949 4,191,230 - 5,115,179 Future Operating & Maintenance Costs: Total Operating Costs 162 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program HARVESTON COMMUNITY PARK BUILDING RENOVATIONS AND EXPANSION Parks/Recreation Project Project Description: This project provides for the design and construction of the renovation, expansion, and Americans with Disabilities Act (ADA) improvements of existing building at the Harveston Community Park. The work includes the expansion of the classrooms, a dedicated check -in counter, a storage room, and bringing the facility up to current ADA accessibility compliance standards. Benefit: This project provides additional amenities for City residents, maintenance of existing building, and brings facility to accessibility compliance. Core Value: Healthy and Livable City Project Status: Project development, design and environmental in Fiscal Year 2023-24. Project funding has been reprioritized, and this project will not move forward at this time. Department: Public Works - Account No. 210.265.999.5800.PW22-11 / 225 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 89,194 40,000 129,194 5802-Design & Environmental 67,937 20,000 87,937 Total Expenditures 1 157,131 60,000 217,131 Source of Funds: 4666-Developer Contribution 4240-D I F-Quimby 1,250,000 157,130 (1,190,000) 60,000 157,130 Total Funding 1,407,130 (1,190,000) 217,130 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. Developer contributions reflect extraordinary benefit payments from the Heirloom Farms and Prado developments, as well as an anticipated payment from a residential project on Date Street. 163 f Alk The Heart of Southern California Wine Country INFILL RECREATIONAL AMENITIES Parks/Recreation Project Project Description: Design and implement alternative recreational amenities such as skateboard park features, mountain/BMX bike skill trainers, rock climbing, parkour, slacklining, exercise equipment, and others within opportunistic locations such as City -owned remnants or spaces within existing parks or public facilities. Benefit: This project will provide City residents with additional popular amenities for enhanced recreational opportunities. Core Value: Healthy and Livable City Project Status: Project will be completed on an on -going basis as funding becomes available. Department: Public Works - Account No. 210.265.999.5800.PW23-05 / 226 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 10,606 10,606 5804-Construction 385,394 385,394 5802-Design & Environmental 4,000 4,000 Total Expenditures 10,606 389,394 400,000 Source of Funds: 4240-D I F-Quimby I 10,6051 389,395 I 400,000 Total Funding 1 10,6051 389,395 400,000 Future Operating & Maintenance Costs: Total Operating Costs 164 f Alk The Heart of Southern California Wine Country LONG CANYON CREEK PARK RESTROOMS Parks/Recreation Project Project Description: This project provides for the design and construction of a new restroom facility at Long Canyon Creek Park that meet current ADA accessibility compliance standards. Benefit: This project provides restrooms for park patrons that are accessibility compliant. Core Value: Healthy and Livable City Project Status: Project is in design. Construction anticipated in FY 25-26 Department: Public Works - Account No. 210.265.999.5800.PWPE-07-03/ PW23-18 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 15,427 161,573 177,000 5804-Construction 820,000 820,000 5805-Construction Engineering 60,000 60,000 5802-Design & Environmental 220,930 220,930 5809-Information Technology 30,000 190,000 220,000 Total Expenditures 15,427 1,292,503 190,000 1,497,930 Source of Funds: 4002-Measure S I 15,4271 1,292,503 190,000 I 1,497,930 Total Funding 1 15,4271 1,292,503 190,000 1,497,930 Future Operating & Maintenance Costs: Total Operating Costs 30,475 31,085 31,706 32,340 Notes : 1. Operating & Maintenance costs reflect the increased janitorial costs associated with the addition of new park restroom facilities. 165 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program PARK RESTROOMS RENOVATIONS, EXPANSION AND AMERICANS WITH DISABILITIES ACT (ADA) IMPROVEMENTS Parks/Recreation Project Project Description: This project provides for the design and construction of the renovation, expansion and Americans with Disabilities Act (ADA) improvements of existing restroom facilities. The restroom expansion includes renovating concession and restroom facilities at the North/South Baseball fields at the Ronald Reagan Sports Park to meet current ADA accessibility compliance standards. Benefit: This project provides additional restrooms for park patrons and brings facility to accessibility compliance. Core Value: Healthy and Livable City Project Status: Project is ongoing Department: Public Works - Account No. 210.265.999.5800.PWPE-07 / 155 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 156,014 65,986 222,000 5804-Construction 105,251 727,548 832,800 5805-Construction Engineering 250,000 250,000 5802-Design & Environmental 15,081 29,919 45,000 5809-Information Technology 30,000 30,000 Total Expenditures 276,347 1,103,453 1,379,800 Source of Funds: 4002-Measure S I 347,8001 1,032,000 I 1,379,800 Total Fundine 1 347.8001 1.032.000 1.379.800 Future Operating & Maintenance Costs: Total Operating Costs 1 1 28,154 28,717 29,292 29,8781 Notes : 1. PWPE-07 is the "Park Restroom Renovations, Expansion and Americans with Disabilities Act (ADA) Improvements" original/master project. The necessary funds to complete PW17-06 were kept here and the remainder of the funds were split between new projects PWPE-07-02 (PW23-06) and PWPE-07-03 (PW23-18). 2. Operating & Maintenance costs reflect the increased janitorial costs associated with the addition of new park restroom facilities. ".: Alk The Heart of Southern California Wine Country PARKS IMPROVEMENT PROGRAM Parks/Recreation Project Project Description: This project facilitates rehabilitation and improvement projects at various City parks. The rehabilitation and improvement projects could include, but are not limited to, parking lot repairs and resurfacing, landscape medians, raised and cracked concrete sidewalk replacement, fencing repair and replacement, landscaping and irrigation system efficiency upgrades, lighting system repairs and efficiency upgrades, on -site drainage improvements and other similar projects. Benefit: This project protects the City's vast investment in parks and open space facilities. Core Value: Healthy and Livable City Project Status: A priority list of rehabilitation projects has been developed. Rehabilitations are completed on an on -going basis. Department: Public Works - Account No. 210.265.999.5800.PWP1-14 / 130 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 21,400 50,000 71,400 5804-Construction 3,361,223 629,550 3,990,774 5802-Design & Environmental 14,969 1,231 16,200 Total Expenditures 3,397,592 680,782 4,078,374 Source of Funds: 4240-D I F-Quimby 250,000 250,000 4001-General Fund 1,003,059 1,003,059 4002-Measure S 2,041,218 398,782 2,440,000 4438-Reimbursements 103,315 282,000 385,315 Total Funding 3,397,592 680,782 41078,374 Future Operating & Maintenance Costs: Total Operating Costs 167 Alk The Heart of Southern California Wine Country PICKLEBALL COURTS Parks/Recreation Project Project Description: Design and construct new dedicated pickleball courts at Ronald Reagan Sports Park. Benefit: This project will provide City residents with an additional popular amenity for enhanced recreational opportunities. Core Value: Healthy and Livable City Project Status: Project development, design, and environmental through Fiscal Year 2023-24. Construction Completed Feb 2025, Closeout Activities Only. Department: Public Works - Account No. 210.265.999.5800.PW21-03 / 787 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 265,425 177,007 442,431 5804-Construction 316,559 2,346,902 2,663,460 5805-Construction Engineering 7,882 42,118 50,000 5802-Design & Environmental 205,709 76,278 281,987 5809-Information Technology 64,699 234,301 299,000 Total Expenditures 860,274 2,876,604 3,736,878 Source of Funds: 4244-DIF-Park & Rec Improvements 256,718 1,193,282 1,450,000 4240-DIF-Quimby 202,601 58,399 261,000 4002-Measure S 400,955 1,624,923 2,025,878 Total Funding 860,274 2,876,604 3,736,878 Future Operating & Maintenance Costs: Total Operating Costs -ti City of Temecula Fiscal Years 2026-30 �{ Capital Improvement Program PLAYGROUND EQUIPMENT ENHANCEMENT AND SAFETY SURFACING IMPROVEMENTS Parks and Recreation Project Playground Location Prior Year Actual Expenditures - Various Park Sites Ronald Reagan Sports Park Paseo Gallante Park Total Project Cost Year Funding Source $ 1,040,000 $ 440,000 $ 3,837,924 Total $ 5,317,924 $ 400,000 2024-25 Total $ 400,000 $ 500,000 2025-26 Total $ 500,000 DIF-Park & Rec Improvements DIF-Quimby Measure S Measure S DIF-Quimby Loma Linda Park $ 500,000 2026-27 DIF-Quimby Ronald Reagan Sports Park $ 939,725 Measure S Total $ 1.439.725 Future Playgrounds Enhancements $ Total $ Future Playgrounds Enhancements Total $ Future Playgrounds Enhancements $ Total $ - 7,657,649 Prior Year Actual Expenditures $ 5,317,924 Fiscal Year 2024-25 $ 400,000 Fiscal Year 2025-26 $ 500,000 Fiscal Year 2026-27 $ 1,439,725 Fiscal Year 2027-28 $ - Fiscal Year 2028-29 $ Fiscal Year 2029-30 $ - TOTAL: $ 79657,649 2027-28 2028-29 2029-30 169 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program PLAYGROUND EQUIPMENT ENHANCEMENT & SAFETY SURFACING Parks/Recreation Project Project Description: This project includes the re -design, enhancement of playground equipment, and safety surfacing at existing City parks to comply with current state and federal regulations and enhance the quality of the parks. The projects include playground safety assessments, planning and evaluation, playground quality enhancements such as fencing, surfacing, accessibility and or new equipment. Benefit: This project protects the City's vast investment in parks and open space facilities. Core Value: Healthy and Livable City Project Status: The enhancement of playground equipment and safety surfacing will be performed at one to two sites per year, dependent on available funding. A priority list has been developed and enhancement will be completed on an ongoing basis. Department: Public Works - Account No. 210.265.999.5800.PWPG-13 / 120 Level: II 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 21,465 72,700 20,000 20,000 134,165 5804-Construction 5,288,756 327,203 480,000 1,419,725 7,515,684 5802-Design & Environmental 7,704 96 7,800 Total Expenditures 5,317,925 399,999 500,000 1,439,725 7,657,649 Source of Funds: 4244-DIF-Park & Rec Improvements 11040,000 11040,000 4240-DIF-Quimby 440,000 500,000 500,000 1,440,000 4002-Measure S 3,837,924 400,000 939,725 5,177,649 Total Funding 5,317,924 400,000 500,000 1,439,725 7,657,649 Future Operating & Maintenance Costs: Total Operating Costs 170 Alk The Heart of Southern California Wine Country RONALD REAGAN SPORTS PARK HOCKEY RINK Parks/Recreation Project Project Description: This project will include the renovation of the existing hockey rink to install new flooring material and arena style roof structure. Benefit: This project will upgrade the existing aging facility and provide state- of-the-art recreation opportunity for the City's residents. Core Value: Healthy and Livable City Project Status: Construction anticipated to begin Q1 of 2025. Department: Public Works - Account No. 210.265.999.5800.PW22-06 / 223 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5801-Administration 180,956 149,267 330,223 5804-Construction 3,314,000 3,314,000 5805-Construction Engineering 300,000 300,000 5802-Design & Environmental 50,712 25,471 76,183 5809-Information Technology 100,000 100,000 Total Expenditures 1 231,6681 3,888,738 4,120,406 Source of Funds: 4666-Developer Contribution 500,000 500,000 4244-DIF-Park & Rec Improvements 1,014,974 1,014,974 4240-DIF-Quimby 520,432 520,432 4002-Measure S 231,668 1,853,332 2,085,000 Total Funding 231,668 3,888,738 41120,406 Future Operating & Maintenance Costs: Total Operating Costs 171 f Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program RONALD REAGAN SPORTS PARK RESTROOM EXPANSION & RENOVATION Parks/Recreation Project Project Description: This project provides for the design and construction of the restroom building expansion at Ronald Reagan Sports Park. The restroom expansion includes adding additional restroom stalls and urinals, renovating the snack bar, and enlarging the storage case. Benefit: This project provides additional facilities for park patrons. Core Value: Healthy and Livable City Project Status: Project is complete. Department: Public Works - Account No. 210.265.999.5800.PW18-03 / 114 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 336,644 4,291 340,935 5804-Construction 891,532 107,203 998,735 5805-Construction Engineering 28,172 33,147 61,319 5802-Design & Environmental 69,936 5,564 75,500 Total Expenditures 1,326,285 150,204 1,476,489 Source of Funds: 4002-Measure S 4438-Reimbursements 1,326,285 4,290 145,914 1,472,199 4,290 Total Funding 1,330,575 145,914 1,476,489 Future Operating & Maintenance Costs: Total Operating Costs 172 Alk The Heart of Southern California Wine Country RONALD REAGAN SPORTS PARK SKATE PARK Parks/Recreation Project Project Description: This project will remove and replace the existing skate park and install state-of-the-art street skate plaza elements. Benefit: This project will upgrade the existing aging facility and provide state- of-the-art recreation opportunity for the City's residents. In addition, this project satisfies the City's Core Values of a Healthy and Livable City, A Safe and Prepared Community, and Accountable and Responsive City Government. Core Value: Healthy and Livable City Project Status: Design was initiated in FY2022-23. Construction is anticipated in FY2025-26. Department: Public Works - Account No. 210.265.999.5800.PW22-07 / 222 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 79,765 127,891 150,000 357,656 5804-Construction 3,316,091 1,850,000 5,166,091 5805-Construction Engineering 70,000 70,000 5802-Design & Environmental 111,804 354,449 466,253 5809-Information Technology 50,000 50,000 Total Expenditures 191,569 3,868,431 2,050,000 6,110,000 Source of Funds: 4244-DIF-Park & Rec Improvements 314,624 314,624 4240-DIF-Quimby 1,016, 240 1,016,240 4002-Measure S 191,570 3,868,430 719,136 4,779,136 Total Funding 191,570 3,868,430 2,050,000 6,110,000 Future Operating & Maintenance Costs: Total Operating Costs 173 Adk f The Heart of Southern California Wine Country SPORTS COURT RESURFACING Parks/Recreation Project Project Description: This project includes repairs and resurfacing of sport court surfacing at various parks and facilities. Surfacing includes tennis courts, basketball courts, and hockey rinks at various parks. Benefit: This project protects the City's vast investment in parks and open space facilities. In addition, this project satisfies the City's Core Values of a Healthy and Livable City, A Safe and Prepared Community, and Accountable and Responsive City Government. Core Value: Healthy and Livable City Project Status: Projects will be completed on an on -going basis. Department: Public Works - Account No. 210.265.999.5800.PWSR-15 / 141 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 255,990 114,267 200,000 100,000 100,000 770,257 Total Expenditures 255,9901 114,267 200,000 - 100,000 100,000 - 770,257 Source of Funds: 4002-Measure S I 255,9901 114,267 200,000 100,000 100,000 I 770,257 Total Funding 1 255,9901 114,267 200,000 - 100,000 100,000 770,257 Future Operating & Maintenance Costs: Total Operating Costs 174 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program SPORTS FIELD LIGHTING - LIGHT EMITTING DIODE (LED) CONVERSION Parks/Recreation Project Project Description: This project provides for the replacement of the aging sports field lighting components with new LED technology at various sports pa rks. Benefit: This project enhances the safety of sport field users, reduces unnecessary light pollution and increases energy efficiency at City parks. Core Value: Healthy and Livable City Project Status: Project will be completed on an on -going basis as funding becomes available. Department: Public Works - Account No. 210.265.999.5800.PWSL-12 / 113 Level: I 2025-26 Prior Years 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Total Project Project Cost: Actuals Adjusted Budget Projected Projected Projected Projected Cost 5804-Construction 1,065,417 1,664,583 2,730,000 Total Expenditures 1,065,417 1,664,583 2,730,000 Source of Funds: 4002-Measure S 4145-TEAM 1,065,417 1,364,583 300,000 2,430,000 300,000 Total Funding 1,065,417 1,664,583 2,730,000 Future Operating & Maintenance Costs: Total Operating Costs Notes : 1. TEAM - Temecula Energy Efficiency Asset Management Fund 2. 25 year warranty on service & parts 175 Alk The Heart of Southern California Wine Country UPTOWN TEMECULA SPORTS PARK Parks/Recreation Project Project Description: This project will provide for the design and construction of a regional sports park facility in the Riverside County Flood Control District detention basin near Jefferson Avenue and Sanborn Avenue. It will include soccer fields, walking paths, and parking. Benefit: This project will provide a much needed recreational facility for the residents of the City and the region. This project aligns with the City's core value of a healthy and livable City, as well as investment in parks and open space facilities. Core Value: Healthy and Livable City Project Status: Continue coordination with Riverside Flood Control & Water Conservation District and Eastern Municipal Water District to develop this project in conjunction with their proposed uses in this space. Department: Public Works - Account No. 210.265.999.5800.PW22-12 / 221 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 81,588 275,412 200,000 557,000 5804-Construction 1,220,000 10,725,545 11,945,545 5805-Construction Engineering 225,000 225,000 5802-Design & Environmental 55,333 744,667 800,000 5809-Information Technology 800,000 800,000 5806-MSHCP 597,277 597,277 Total Expenditures 136,922 2,240,078 12,547,822 14,924,822 Source of Funds: 4244-DIF-Park & Rec Improvements 2,000,000 2,000,000 4240-DIF-Quimby 129,673 870,327 1,000,000 2,000,000 4002-Measure S 7,249 1,369,751 1,377,000 4452-Unspecified 9,547,822 9,547,822 Total Funding 136,922 2,240,078 12,547,822 14,924,822 Future Operating & Maintenance Costs: Total Operating Costs 176 Alk The Heart of Southern California Wine Country VAIL RANCH PARK RESTROOMS Parks/Recreation Project Project Description: This project provides for the design and construction of the renovation, expansion and Americans with Disabilities Act (ADA) improvements of existing restroom facilities. The restroom expansion includes the addition of new restroom facilities at Vail Ranch Park that meet current ADA accessibility compliance standards. Benefit: This project provides restrooms for park patrons that are accessibility compliant. Core Value: Healthy and Livable City Project Status: Project is in design. Construction anticipated in FY 25-26 Department: Public Works - Account No. 210.265.999.5800.PWPE-07-02/ PW23-06 Level: I City of Temecula Fiscal Years 2026-30 Capital Improvement Program Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 25,292 151,708 177,000 5804-Construction 835,000 835,000 5805-Construction Engineering 60,000 60,000 5802-Design & Environmental 220,930 220,930 5809-Information Technology 30,000 70,000 100,000 Total Expenditures 25,292 1,297,638 70,000 1,392,930 Source of Funds: 4002-Measure S I 25,2921 1,297,638 70,000 I 1,392,930 Total Fundine 1 25.2921 1.297.638 70.000 -1 1.392.930 Future Operating & Maintenance Costs: Total Operating Costs 30,475 31,085 31,706 32,340 Notes : 1. Operating & Maintenance costs reflect the increased janitorial costs associated with the addition of new park restroom facilities. 177 I ' •ui 1p F CFD FUNDED PROJECTS 179 l The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program CFD Bond Projects N1G01.AS ItD Ro Pt E 0y4� ro a ° y Ito D E U. No DR �O S0%,ANA IVY 9 R o C MAROP O O � �9 1 F 40 9L 4pV1FORNIA Ito �° O 4 0 �g PA# � O VIS-T 9 O 4� X 009 1,40 R PVSA Ro �9 q\AGO T �P�?g °< 9 pN O a OA O A Z y�T O Z RCOI.ARO le. vIy `QT o 'fEMEGUVpPK JPt� RANcy.e F oy 9 0 9 A vv�.4 Ro V�pWK Pe F v O Map ID Description I Butterfield Stage Road Extension 2 Nicolas Road Extension & Improvements �� Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program BUTTERFIELD STAGE ROAD EXTENSION Projects Funded by Community Facilities District Bonds Project Project Description: This project includes the complete design and construction of four lanes on Butterfield Stage Road (from Rancho California Road to Murrieta Hot Springs Road), four lanes on Murrieta Hot Springs Road (from Butterfield Stage Road to the City limits), and two lanes on Calle Chapos (from Butterfield Stage Road to Walcott Road), totaling approximately 3.2 miles of road. Benefit: This project improves traffic circulation by providing a crucial north and south arterial road on the eastern side of the City. Core Value: Transportation Mobility and Connectivity Project Status: Construction of the roads has been completed. Department: Public Works - Account No. 210.265.999.5800.PW15-11 / 723 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 2,767,560 288 2,767,848 5804-Construction 20,050,733 1,520,415 21,571,148 5805-Construction Engineering 1,231,619 1,231,619 5802-Design & Environmental 820,789 820,789 5700-Land Acquisition 15,015,423 15,015,423 5240-Utilities 203 203 Total Expenditures 39,886,327 1,520,702 41,407,029 Source of Funds: 4277-CFD 03-02 (Roripaugh Ranch) 38,401,739 635,200 39,036,939 4438-Reimbursements 932,090 932,090 4413-TU M F 1,438,000 11438,000 Total Funding 40,771,829 635,200 41,407,029 Future Operating & Maintenance Costs: Total Operating Costs 181 Alk The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program NICOLAS ROAD EXTENSION & IMPROVEMENTS Projects Funded by Community Facilities District Bonds Project Project Description: This project includes the extension of Nicolas Road from the Roripaugh Ranch Phase II westerly boundary to Calle Girasol/Liefer Road. The improvements include approximately4,000 LF road improvements and culvert crossing at Santa Gertrudis Creek. Also included is reimbursement for improvements at the intersection of Nicolas Road and Winchester Road, competed in 2021. Benefit: This project improves traffic circulation on the eastern side of the City. Core Value: Transportation Mobility and Connectivity Project Status: Woodside, the developer of Sommer's Bend development is taking the lead in completing the improvements. Construction started in FY2023-24 and is scheduled for completion in FY2024-25. Department: Public Works - Account No. 210.265.999.5800.PW20-14 / 604 Level: I Project Cost: Prior Years Actuals 2025-26 2024-25 Proposed 2026-27 2027-28 2028-29 2029-30 Adjusted Budget Projected Projected Projected Projected Total Project Cost 5801-Administration 9,109 595,144 604,253 5804-Construction 16,292,907 16,292,907 5805-Construction Engineering 2,137,500 2,137,500 5802-Design & Environmental 2,675 994,825 997,500 5700-Land Acquisition 1,440,000 1,440,000 5806-MSHCP 712,500 712,500 Total Expenditures 11,784 22,172,876 22,184,660 Source of Funds: 4277-CFD 03-02 (Roripaugh Ranch) 11,784 7,695,933 7,707,717 4278-CFD 16-01 (Roripaugh Ranch- 6,722,850 6,722,850 Phase II) 4666-Developer Contribution 7,754,093 7,754,093 Total Funding 1 11,7841 22,172,876 - 22,184,660 Future Operating & Maintenance Costs: Total Operating Costs City of Temecula Fiscal Years 2026-30 Capital Improvement Program FUTURE YEARS PROJECTS The following projects have been identified through the City's Quality of Life Master Plan (QLMP) update and reflects the citizens' 20-Year Priorities Timeline. Additional capital projects identified by City staff are also reflected. Cost estimates will be reflected when the projects are included in the 5-Year Capital Improvement Program Budget. Project Title Department CIRCULATION Butterfield Stage Road Separated Bike Lanes Public Works La Paz Street Widening from Ynez Road to Temecula Parkway Public Works Margarita Road Street Improvements Public Works North General Kearny Street Improvements Public Works Pauba Road Improvements - east of Margarita Road on the north side Public Works Rainbow Canyon Road Widening from Pechanga Parkway to City Limit Public Works Temecula Creek Bridge at Avenida de Missiones Public Works Rancho Way Bridge at 1-15 Public Works Murrieta Creek Bridge at Cherry Street (connecting at French Valley Parkway)* Public Works Western Bypass Corridor* Public/Private Development INFRASTRUCTURE/OTHER Acquistion of Fire Station 12 in Old Town* City Manager's Office Complete Temecula Loop Trail* Community Development Climate Action Plan* Community Development History Museum Renovation Community Development Integrated Watershed Management Plan* Community Development Bike Lane and Trail Program - RRSP Trails Public Works 1-15 Gateway Monument* Public Works Old Town Parking Structure(s)* Public Works Fire Training Facility with Tower* Public/Private Development Wildlife Crossing over 1-15* Public/Private Development PARKS and RECREATION Vail Ranch Park Site D Community Services Harveston Community Park Building Renovation and Expansion Public Works Mobile Library Resource Vans* Public/Private Development Organic Community Garden* Public/Private Development Tennis Complex* Public/Private Development Performing Arts Center* Public/Private Development Aquatics Facility with Olympic -size Swimming Pool* Public/Private Development * Items identified in the Quality of Life Master Plan - 2040 183 I ' •ui 1p F 7e,,'.-' Wine Country LOCATOR MAP City of Temecula Fiscal Years 2026-2030 Capital Improvement Program The City of Temecula is a General Law City located in southwestern California, United States, with a population of 112,220. The City was incorporated on December 1, 1989. Temecula, known as the Heart of Southern California Wine Country, is conveniently located off the 1-15 freeway, approximately one hour north of San Diego. Temecula's central location attracts visitors from popular Southern California locales like Palm Springs, Los Angeles, Anaheim, Irvine, Carlsbad and San Diego. 185 City of Temecula Fiscal Years 2026-30 Capital Improvement Program COMPLETED CIP PROJECTS Project 770 PW Number PW16-04 Title CITYWIDE CONCRETE REPAIRS Final Costs $312,631 Fiscal Year 2017-18 757 PW13-07 FIRE STATION 73 LIVING QUARTERS UPGRADE $1,816,068 2017-18 119 PW15-08 PATRICIA BIRDSALL SYNTHETIC TURF REPLACEMENT $1,844,679 2017-18 999 TENANT IMPROVEMENTS $8,500 2017-18 715 PW12-19 CITYWIDE STORM DRAIN IMPROVEMENT $777,069 2018-19 763 DEVELOPER REIMBURSEMENTS $1,591,872 2018-19 765 EMERGENCY OPERATIONS CENTER (EOC) IMPROVEMENTS $117,488 2018-19 115 PW17-07 FALLEN HEROES MEMORIAL $275,623 2018-19 695 OLD TOWN STREET LIGHT CONVERSION LED $33,754 2018-19 773 PW17-09 RONALD H ROBERTS TEMECULA PUBLIC LIBRARY $248,074 2018-19 122 PW17-23 TEEN VILLAGE $37,409 2018-19 660 PW06-04 WESTERN BYPASS BRIDGE AT MURRIETA CREEK $964,462 2018-19 713 PW16-03 AMERICANS WITH DISABILITIES ACT $347,157 2019-20 753 FIRE STATION RORIPAUGH PHASE II $69,030 2019-20 691 PW17-20 MAIN STREET PROPERTY IMPROVEMENTS $135,355 2019-20 555 PW17-05 SIDEWALK SIXTH STREET IMPROVEMENTS $327,631 2019-20 775 PW17-22 SIDEWALKS - YNEZ ROAD $107,874 2019-20 523 PW18-08 TRAFFIC CAMERAS COMMUNICATION EQUIPMENT $814,864 2019-20 116 PW18-02 COMMUNITY RECREATION CENTER (CRC) POOL SITE ENHANCEMENT $1,942,214 2020-21 117 COMMUNITY SERVICES MASTER PLAN $276,200 2020-21 136 HARVESTON LAKE INFRASTRUCTURE IMPROVEMENTS $78,009 2020-21 146 PW17-09 RONALD H. ROBERTS TEMECULA PUBLIC LIBRARY ENHANCEMENT $164,217 2020-21 132 PW12-20 SAM HICKS MONUMENT PARK PLAYGROUND $484,317 2020-21 650 PW10-13 PAVEMENT REHABILITATION PROGRAM - WINCHESTER RD $1,409,205 2021-22 989 TENANT IMPROVEMENTS - VTV $237,837 2021-22 781 PW20-09 BIKE LANE AND TRAIL PROGRAM - MINI PUMP TRACK $87,706 2022-23 718 PW18-04 BIKE LANE AND TRAIL PROGRAM - PUMP TRACK $545,839 2022-23 526 PW19-21 CITYWIDE BUFFERED BIKE LANE STRIPING $96,473 2022-23 145 PW20-07 EAGLE SOAR SPLASH PAD CONTROL SYSTEM RENOVATION $192,260 2022-23 522 PW17-08 EMERGENCY VEHICLE PRE-EMPTION UPGRADE PROGRAM - CITYWIDE $246,674 2022-23 719 PW07-04 I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE 1 $28,575,323 2022-23 603 PW20-01 OVERHEAD STREET NAME SIGN REPLACEMENT PROGRAM - CITYWIDE $322,416 2022-23 530 PW15-14 PECHANGA PARKWAY WIDENING $4,740,868 2022-23 689 PW17-29 RECYCLED WATER CONVERSION PROJECT $667,620 2022-23 613 PW18-06 ROUNDABOUT IMPROVEMENTS ON YNEZ ROAD $777,332 2022-23 220 PW20-12 SAM HICKS MONUMENT PARK PERIMETER FENCING $251,311 2022-23 696 PW17-16 SIDEWALKS - OLD TOWN BOARDWALK ENHANCEMENT $1,124,860 2022-23 747 PW06-09 TEMECULA PARK & RIDE $4,359,423 2022-23 153 PW13-09 LIBRARY PARKING - PHASE 11 $3,261,430 2023-24 114 PW18-03 RONALD REAGAN SPORTS PARK RESTROOM EXPANSION $1,476,489 2023-24 187 PW05-13 RONALD REAGAN SPORTS PARK CHANNEL SILT REMOVAL $672,219 2023-24 721 PW19-18 SIDEWALKS- DLR DRIVE $464,866 2023-24 127 PWFC-10 FLOOD CONTROL CHANNEL RECONSTRUCTION & REPAIR $2,067,402 2023-24 550 PW18-05 FIBER OPTIC COMMUNICATION SYSTEM UPGRADE $1,529,460 2024-25 605 PW18-11 TRAFFIC SIGNAL - PARK & RIDE ACCESS IMPROVEMENTS $2,012,869 2024-25 771 PW21-08 MARY PHILLIPS SENIOR CENTER EMERGENCY GENERATOR $221,207 2024-25 796 PW22-08 MARY PHILLIPS SENIOR CENTER OUTDOOR RECREATIONAL AREA $904,451 2024-25 518 PW19-10 PEDESTRIAN SIGNAL EQUIPMENT UPGRADE - CITYWIDE $839,879 2024-25 739 PW08-04 SANTA GERTRUDIS CREEK PEDESTRIAN/BICYCLE TRAIL EXTENSION $7,191,535 2024-25 143 PWTP-16 TEMECULA ELEMENTARY SCHOOL (TES) POOL RENOVATION $62,504 2024-25 788 PW21-15 TRAFFIC SIGNAL - PROMENADE MALL RING ROAD $474,186 2024-25 224 PW22-14 RONALD REAGAN SPORTS PARK PUMP TRACK SHADE STRUCTURE $119,603 2024-25 MR R The Heart of Southern California Wine Country City of Temecula Fiscal Years 2026-30 Capital Improvement Program COMPLETED CIP PROJECTS Project PW Number Title 516 PW11-01 PECHANGA PARKWAY ENVIRONMENTAL MITIGATION Final Costs Fiscal Year $865,044 2024-25 206 PW21-04 RCWD RECYCLED WATER ACCELERATED RETROFIT PROGRAM $137,787 2024-25 204 PW20-15 URBAN FOREST MANAGEMENT PLAN $351,264 2024-25 $79,061,838 187 l The Heart of CaE .f . Wine Country GLOSSARY OF TERMS City of Temecula Fiscal Years 2026-2030 Capital Improvement Program ABATEMENT - Abatement usually applies to tax levies, special assessments, and service charges. ACCOUNTING SYSTEM - The methods and records established to identify, assemble, analyze, classify, record, and report a government's transactions and to maintain accountability for the related assets and liabilities. ACCRUAL BASIS -The recording of the financial effects on a government of transactions and other events and circumstances that have cash consequences for the government in the periods in which those transactions, events, and circumstances occur, rather than only in the periods in which cash is received or paid by the government. ACTUAL - Represents the actual costs from the results of operations. ADOPTED - Represents the budget as approved by the City Council. ADOPTION - Formal action by the City Council that sets the spending limits for the fiscal year. AGENCY FUND - A fund normally used to account for assets held by a government as an agent for individuals, private organizations or other governments and/or other funds. APPROPRIATION - A legal authorization granted by the City Council to make expenditures and incur obligations for specific purposes. AMERICANS WITH DISABILITIES ACT OF 1990 (ADA) - A federal law providing for a wide range of protection to individuals which directly benefit District members. ASSESSMENT DISTRICT - A separate local government agency formed to provide specific local public improvements that directly benefit District members. AUDIT - A systematic collection of the sufficient, competent evidential matter needed to attest to fairness of management's assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. BALANCE SHEET - The financial statement disclosing the assets, liabilities, and equity of an entity at a specified date. BALANCED BUDGET - A budget that reflects operating revenues that fully cover operating expenditures. BUDGET - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. BUDGETARY CONTROL - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and revenues. W-? l The Heart of CaE .f . Wine Country GLOSSARY OF TERMS City of Temecula Fiscal Years 2026-2030 Capital Improvement Program CAPITAL EXPENDITURES - Expenditures resulting in the acquisition of or addition to the government's general fixed assets having a unit cost of $5,000 or more and a useful life of greater than one year. Infrastructure assets of $100,000 or more are also recorded capital expenditures. CAPITAL IMPROVEMENT - Construction or major repair of City buildings, infrastructure, and facilities such as streets, roads, highways, bridges, curbs, gutters, sidewalks, storm drains, traffic signals, streetlights, gas and water distribution facilities, and parks. CAPITAL IMPROVEMENT PROGRAM (CIP) - A comprehensive plan which projects the capital needs of the community. Generally, it is a cyclical process that projects the needs for a set number of years. Capital improvements plans are essential to sound infrastructure and financial planning. The annual capital budget is derived from the long-term CIP. CAPITAL OUTLAY - Expenditures which qualify as capital costs according to accounting standards. This includes furniture, fixtures, machinery, equipment, and other relatively minor fixed assets. CAPITAL PROJECT - A specific undertaking involving the procurement, construction or installation of facilities and related equipment which improves, preserves, enhances, or modernizes the City's provision of municipal services, has a long-term useful life, and for which costs exceed $30,000. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) - Funds allocated to local government from the federal government, based on a formula, but required to be applied for and used within a broad functional area such as community development. CONSTRUCTION ENGINEERING - Engineering work during the construction process that ensures projects are constructed in accordance with design parameters and specifications. The primary construction engineering functions are construction inspections, laboratory services, field surveys and design plan updates or interpretations. CONTINGENCY - A budgetary reserve set aside for emergency or unanticipated expenditures. CONTRACTUAL SERVICES - Contracts for professional services. CORE VALUE - 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 seven (7) Core Values upon which to focus time and resources (as identified in the QLMP). These areas include: 1. A Safe & Prepared Community 2. Transportation Mobility & Connectivity 3. Healthy & Livable City 4. Economic Prosperity S. Sustainable & Resilient City 6. Accountable & Responsive City Government 7. Equity MR, l The Heart of CaE .f . Wine Country GLOSSARY OF TERMS City of Temecula Fiscal Years 2026-2030 Capital Improvement Program COVID-19 - The viral outbreak, caused by a coronavirus that causes upper -respiratory illness, became a pandemic in the first quarter of 2020. The economic impact it will have on local government is difficult to predict due to the sudden and unprecedented nature of the pandemic. The full effect may not be known for some time but local governments are likely to see significant reductions in tax revenues. CURRENT BUDGET - Represents the original adopted budget plus any approved changes and anticipated year-end adjustments. DEBT SERVICE FUND - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Sometimes referred to as a Sinking Fund. DEPARTMENT - An organizational unit comprised of programs and program managers. A single director manages each department. DESIGNATED FUND BALANCE - Management's intended use of available expendable financial resources in governmental funds reflecting actual plans approved by the City Council. ENCUMBRANCE - Obligations in the form of purchase orders, contracts, or other commitments. They cease to be encumbrances when paid, cancelled, or when the actual liability is set up. EXPENDITURES - Decreases in net financial resources that include current operating expenses that require the current or future use of net current assets, debt services, and capital outlays. FEES - Charges for specific services. FINES AND FORFEITURES - A fine is a financial penalty imposed by a government agency as restitution for wrongdoing. The wrongdoing is typically defined by a codification of legislation, regulations, and decrees. Forfeiture is the automatic loss of property, including cash, as a penalty for breaking the law, or as compensation for losses resulting from illegal activities. Once property has been forfeited, the City may claim it, resulting in confiscation of the property. FISCAL YEAR -The period designated by the City signifying the beginning and ending period for recording financial transactions. The City of Temecula has a fiscal year of July 1 through June30. FRANCHISE - A special privilege granted by a government, permitting the continued use of public property, such as refuse disposal and cable television, and usually involving the elements of monopoly and regulation. FULL-TIME EQUIVALENTS (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Most full-time employees are paid for 2,080 hours in a year. FUND - A fiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equities or balances and changes therein which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. 190 l The Heart of CaE .f . Wine Country GLOSSARY OF TERMS City of Temecula Fiscal Years 2026-2030 Capital Improvement Program FUND BALANCE - The difference between assets and liabilities that is generally spendable or available for appropriation. Some Governmental funds as well as Proprietary and Fiduciary funds which utilize full accrual basis of accounting also include non -spendable fund balance which includes amounts that cannot be spent because they include prepaid items or inventories or are legally required to be maintained intact, such as the principal portion of an endowment. FUTURE YEARS - The intent of the future period is to project out to ten (10) years, projects that are anticipated by staff and the City Council that will ultimately have a very large impact on the City and surrounding area. GANN APPROPRIATIONS LIMIT - This term refers to Article XIIIB of the California State Constitution that places limits on the amount of proceeds from taxes that state and local governmental agencies can receive and spend each year. GENERAL FUND - Accounts for tax and other general fund revenues (e.g., sales taxes, property taxes, fines and forfeitures, investment interest, etc.) and records the transactions of general governmental services (e.g., police, fire, library, parks and recreation, public service, etc.). GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP) - GAAP is the uniform minimum standards of and guidelines to financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompass the conventions, rules, and procedures necessary to define the accepted accounting practices at a particular time. They include both broad guidelines of general application and detailed practices and procedures. GAAP provides a standard by which to measure financial presentations. GOALS - The desired result of accomplishments within a given time frame, usually a fiscal year. GRANTS - Contributions or gifts of cash or other assets from another government to be used or expended for a specified purpose. INTERGOVERNMENTAL REVENUES - Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. INTERNAL SERVICE FUNDS - A fund used to account for financing of goods or services provided by one department to other departments on a cost -reimbursement basis. LEVY - To impose taxes for the support of government activities. LICENSES, PERMITS AND SERVICE CHARGES - License and permit fees are charged as a means of recovering the cost of regulating various activities. These charges are authorized through the California Government Code and State Constitution. Examples include building permits and business licenses. The City also assesses service charges through user fees on everything from recreation programs to facility rentals. Service charge is also the classification for the Community Services funding allocation from the General Fund to the Temecula Community Services District. It is also the classification for charges back to departments from Internal Service Funds. 191 l The Heart of CaE .f . Wine Country GLOSSARY OF TERMS City of Temecula Fiscal Years 2026-2030 Capital Improvement Program LONG-TERM DEBT - Debt with a maturity of more than one year after the date of issue. LONG-TERM GOALS - An observable and measurable result, having one or more objectives to be achieved within a set time frame. MEASURE C (SPECIAL TAX) - A voter approved 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 streetlights 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. Special Tax is allocated 50% in the General Fund and 50% in the Community Services District. MEASURE S (SALES TAX) - A one cent add -on sales tax, approved by voters on November 8, 2016, to maintain 9-1-1 emergency response times, prevent cuts to local paramedic/police/fire protection, school safety patrols, youth/afterschool senior, disabled services; improve freeway interchanges/reduce traffic; and other general services. It is estimated that this tax will generate approximately $23 million annually. MISCELLANEOUS REVENUE - Revenue which includes Police charges for services including report copies, fingerprint rolling fees, etc. as well as right of way advertising revenue, charges for planning commission packets and other miscellaneous charges and reimbursements. MODIFIED ACCRUAL BASIS - The accrual basis of accounting adapted to the governmental fund -type measurement focus. Under it, revenues and other financial resource increments are recognized when they become susceptible to accrual that is when they become both "measurable" and "available" to finance expenditures of the current period. Expenditures are recognized when the fund liability is incurred except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when used. All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis for accounting. MOTOR VEHICLE LICENSE FEE - The motor vehicle license fee (MVLF), also called the motor vehicle in - lieu tax, is a tax on the ownership of a registered vehicle in place of taxing vehicles as personal property. The MVLF is paid annually upon vehicle registration in addition to other fees, such as the vehicle registration fee, air quality fees, and commercial vehicle weight fees all of which fund specific state programs. The MVLF funds City services. OBJECTIVES - The necessary steps to be accomplished in order to achieve a desired goal. OPERATING BUDGET - Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled. OPERATING TRANSFERS IN/OUT - Authorized exchanges of cash or other resources between funds. 192 l The Heart of So 0-- CaE .—. Wine Country GLOSSARY OF TERMS City of Temecula Fiscal Years 2026-2030 Capital Improvement Program OPERATIONS & MAINTENANCE - Supplies and other materials used in the normal operations of City departments. ORGANIZATION - A unit of operation having specific responsibilities and duties and collectively form an Agency. The terms organization and division is used interchangeably throughout the budget document (i.e., Accounting Organization, Traffic Division, etc.). OTHER TAXES - Classification for all taxes with the exception of property tax and sales and use tax which are defined on their own. Includes Gas Tax, Measure C (Special Tax), Transient Occupancy Tax and Franchise Fees PROPERTY TAX - A 1% levy upon the assessed valuation of property, as established by Proposition 13 in 1978. PROPERTY TAX IN LIEU OF VLF - A swap from the state of California, where over 90% of California City and county vehicle license fee revenues were exchanged for additional property tax. Subsequent to the Fiscal Year 2004-05 base year, each city's and county's property tax in lieu of VLF increases annually in proportion to the growth in gross assessed valuation in that jurisdiction. RESOURCES - Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. REVENUES - The yield of taxes and other sources of income that a governmental unit collects and receives for public use. SALES AND USE TAX - Sales tax applies to the sale of merchandise, including vehicles within the State of California. The use tax applies to the use, storage or other consumption of those same kinds of items within the state. Sales tax applies when physical merchandise is purchased in California and use tax applies when a similar purchase without tax is made from a business located outside the state. SPECIAL ASSESSMENT - A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA) - Successor agency established in order to pay the debts and obligations and to perform the obligated activities of the former Temecula Redevelopment Agency (RDA) due to ABx1 26 which dissolved Redevelopment Agencies. TAXES - Compulsory charges levied by a government to finance services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments. Neither does the term include charges for services rendered only to those paying such charges. 193 l The Heart of CaE .f . Wine Country GLOSSARY OF TERMS City of Temecula Fiscal Years 2026-2030 Capital Improvement Program TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - An assessment district that was established in Temecula to provide a comprehensive, balanced neighborhood and community park system by constantly reviewing growth, demographics and facilities available. It 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. TRANSIENT OCCUPANCY TAX - Also called a Hotel Tax, this revenue source originates in a tax placed on lodging facilities for the occupancy of a room. The City of Temecula's Transient Occupancy Tax rate is 8%. TRANSFERS IN/OUT - Payments from one fund to another fund primarily for work or services provided. TRANSFERS TO CIP - Authorized exchanges of cash or other resources to the Capital Improvement Program. UNDESIGNATED FUND BALANCE - Available expendable financial resources in a governmental fund that are not the object of tentative management plans (i.e., designations). UNSPECIFIED - Funds that have not been identified for various proposed projects. USE OF MONEY AND PROPERTY - Classification used for revenue sources which include lease and rental income, as well as investment interest. USER CHARGES/FEES - A sum of money paid by the individual who chooses to access a service or facility. Examples of user fees include building permit fees and recreation class fees. With user fees, the individual directly pays for something he or she wants and receives what he or she has paid for. WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) - WRCOG is a voluntary association that represents Riverside County, 17-member local cities located in Western Riverside County, Eastern Municipal Water District and Western Riverside Water District, that seek to provide cooperative planning, coordination, and technical assistance on issues of mutual concern that cross jurisdictional lines. The primary functions of WRCOG include (a) serve as a forum for consideration, study and recommendation on area -wide and regional problems; (b) assemble information helpful in the consideration of problems peculiar to Western Riverside County; (c) explore practical avenues for intergovernmental cooperation, coordination and action in the interest of local public welfare and means of improvements in the administration of governmental services; and (d) serve as the clearinghouse review body for Federally -funded projects in accordance with Circular A-95 in conjunction with the Southern California Association of Governments. 194 City of Temecula Fiscal Years 2026-2030 Capital Improvement Program SUMMARY OF AFFORDABLE HOUSING INVESTMENT The City of Temecula, in conjunction with the former Temecula Redevelopment Agency (RDA), has invested $41 million in a variety of affordable housing options for Temecula residents, with 704 units completed since the City incorporated in 1989, and 95 of those units funded and completed by the County of Riverside. With an additional investment of $16 million, an additional 143 affordable units have been funded and will be constructed in the future. The developers of the future projects are working to secure the remaining funding via tax credits necessary to begin construction. Cameron Building • 24 rental units for moderate -income households 80% of area median income (AMI) • RDA Investment $3 million • Mixed used building with commercial retail space on the bottom floor and 24 affordable housing units on floors 2-4 Palomar Heritage • 22 rental units for low and moderate -income households 60% and 110% AMI • RDA investment $3.3 million • Mixed used building with commercial retail space on the bottom floor and 22 affordable housing units on floors 2-3 Both the Cameron Building and the Palomar Heritage Building were the first of their kind in Old Town. The projects provided a great opportunity for the City to not only work towards meeting the community's affordable housing needs but also to spur economic development within the Old Town District. The use of affordable housing funds to produce affordable housing and commercial space in a mixed -use building in Old Town allowed the City to leverage the City's affordable housing funds for multiple purposes within the same development. This strategy of investment for the two future affordable housing / mixed use buildings served as a model for two other City -funded developments in Old Town. 1 L a Portola Terrace • 44 rental units for low and very low-income households 50% and 60% AMI • RDA investment $5.5 million • Completed in 2013 Madera Vista • 110 affordable units in larger family -sized apartments • RDA investment $8.4 million • 20 units set aside for seniors The Madera Vista development was originally a private condo development that fell into foreclosure during the Great Recession. The project partially built and in disrepair. The City, along with Bridge Housing utilized affordable housing funds to purchase the property and completed construction. 195 R City of Temecula Fiscal Years 2026-2030 Capital Improvement Program SUMMARY OF AFFORDABLE HOUSING INVESTMENT In addition to providing funding to construct affordable housing units, the former Redevelopment Agency invested $524,356 to provide a First -Time Home Buyer Program available to moderate -income households (120% AM I) and assisted 20 First -Time Home Buyers to purchase homes in Temecula. The City of Temecula and the former RDA have partnered with Habitat for Humanity since 2003 to construct five homes for low-income households to purchase. Total RDA investment of $582,000. An additional $700,000 investment with Habitat for Humanity is programmed for a future project to build six for -sale affordable/workforce housing units available to moderate and low-income homebuyers. The City's primary funding source for affordable housing was the Temecula Redevelopment Agency. In 2012, the State of California disbanded all redevelopment agencies within the State. The City of Temecula serves as the Successor Agency to the Redevelopment Agency (SARDA) and is responsible for the eventual wind down of the remaining RDA obligations, including the investment of the remaining $12.8 million in bond proceeds of the former RDA. Two affordable housing projects have been identified and the City Council has approved funding agreements with developers to provide an additional 137 affordable units. Vine Creek - Under Construction • 60 rental units for low and very low-income households "`- �-_ • 14 units set aside for special needs residents RDA investment of $6.7 million Las Haciendas - Completed • 77 rental units for low and very low-income households • RDA investment $10.2 million • Project is the first residential development in the Uptown Temecula Specific Plan area 49W46%._6, In Fiscal Year 2021-22, the City set -aside $1 million in Community NJ, Reinvestment Program (CRP) Funds for a future affordable housing development in the Uptown Specific Plan area. W City of Temecula Fiscal Years 2026-30 Capital Improvement Program FISCAL YEAR 2025-26 DEBT OBLIGATIONS FISCAL YEAR 2025-26 ISSUE BOND MATURITY INTEREST TOTAL DEBT OUTSTANDING FUND DATE DESCRIPTION RATING* DATE RATES PRINCIPAL INTEREST OBLIGATION PRINCIPAL Tax Allocation Bonds, Series 380 2017 AA 12/15/2038 2.00 - 5.00% 1,795,000 1,717,125 3,512,125 33,685,000 2017A 380 2017 Tax Allocation Bonds, Series AA 12/15/2039 2.00 - 4.00% 1,185,000 911,269 2,096,269 23,310,000 2017E (Taxable) Successor Agency to the Redevelopment Agency (SARDA) Total 1 $2,980,000 $2,628,394 $5,608,3941 $56,995,000 TOTAL $2,980,000 $2,628,394 $5,608,3941 $56,995,000 *The Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A and 2017E were rated by Standard & Poors and assigned an underlying rating of "BBB+" and an insured rating of "AA," per the Official Statement dated December 19, 2017. The City has programmed the use of Debt Financing for the following Capital Improvement Projects: 1) Las Haciendas Affordable Housing Project ($9,629,143) in bond proceeds from the Tax Allocation Bond, Series 2017B. 2) Vine Creek Affordable Housing Project ($1,408,281) in bond proceeds from the Tax Allocation Bond, Series 2017B. 197 City of Temecula Fiscal Years 2026-30 Capital Improvement Program STATUS OF PAVEMENT MANAGEMENT PROGRAM In 2024, the City of Temecula completed the Pavement Management Analysis Report, summarizing the findings of a Pavement Condition Index study performed by Infrastructure Management Services (IMS). Pavement management is the process of planning, budgeting, funding, designing, constructing, monitoring, evaluating, maintaining, and rehabilitating the pavement network to provide maximum benefits with available funds. Streets that are repaired when they are in good condition will cost less over their lifetime than streets that are allowed to deteriorate to a poor condition. Without an adequate routine pavement maintenance program, streets require more frequent reconstruction, thereby costing millions of extra dollars. Over time, pavement quality drops until the pavement condition becomes unacceptable. IMS conducted field surveys, utilizing a Integrate Road Information System (IRISpro Pave), to evaluate the overall condition of the pavement and developing a quantitative formula to represent the overall condition of the pavement, known as a Pavement Condition Index (PCI). The PCI rating correlates to the relative remaining life of the road surface. Relative PCI Range Description Definition Remaining Life 85 — 100 Excellent 15 to 25 Years Like new condition — little to no maintenance required when new; routine maintenance such as crack and joint sealing. 70 — 85 Very Good 12 to 20 Years Routine maintenance such as patching and crack sealing with surface treatments such as seal coats or slurries. 60 — 70 Good 10 to 15 Years Heavier surface treatments and thin overlays. Localized panel replacements. 40 — 60 Marginal to Fair 7 to 12 Years Heavy surface -based inlays or overlays with localized repairs. Moderate to extensive panel replacements. 25 — 40 Poor 5 to 10 Years Sections will require very thick overlays, extensive panel replacements, surface replacement, base reconstruction, and possible subgrade stabilization. 0 — 25 Very Poor 0 to 5 Years High percentage of full reconstruction. Temecula has 352 centerline miles of roadways, encompassing over 8.8 million square yards of concrete and asphalt surfacing. The study found that the average PCI for Temecula's roadway network was 71 with a backlog of 6% (PCI :— 40), which is above the national average of 65. To maintain the current condition of the road network, the City needs to spend approximately $7.01 million per year. Since 2014, the City has invested approximately $7.44 million per year across several Capital Projects and maintenance programs including the Pavement Rehabilitation Program Capital Project and the neighborhood slurry seal program. The study is conducted every 5 years. The next pavement management study will be conducted fiscal year 2029/30. 198