City of Chula Vista
Fiscal Year 2025
Proposed Budget
Overview
1 Agenda
FISCAL YEAR 2025
PROPOSED BUDGET
FISCAL YEAR 2025 CAPITAL
IMPROVEMENT PROGRAM
NEXT STEPS
2 Budget Process Overview
3 • Staff provided to the City Council a presentation of the General Fund Long-Term Financial Plan from FY2025 to FY2034Nov. 28, 2023
• Development of a preliminary baseline budget; Departmental requests and adjustmentsJan. - April 2024
• Staff conducted two Community Budget Workshops at Civic & Otay Ranch LibrariesApril 17 & 24, 2024 • City Manager’s Proposed Budget Document was submitted to City Council at least 35 days prior to the beginning of the fiscal year, as required by City CharterMay 2, 2024 • Presentation to City Council of the Fiscal Year 2025 City Manager’s Proposed BudgetMay 7, 2024 • Public hearing and Council vote to adopt the Fiscal Year 2025 Proposed BudgetMay 21, 2024 • Fiscal Year 2025 begins, Adopted Budget is implementedJuly 1, 2024 Key Economic Factors
• Gross Domestic Product
• Consumer Prices/Inflation
• Federal interest rates
• Housing Data
• Employment levels
4 National Growth – Gross Domestic Product (GDP)
5 Consumer Prices / Inflation
6 Federal Interest Rates
7 Source: Board of Governors of the Federal Reserve System (US)
0.0 1.0
2.0 3.0
4.0 5.0
6.0 3/1/2019 3/1/2020 3/1/2021 3/1/2022 3/1/2023 3/1/2024 Percent
Federal Funds Effective Rate
National Housing Market
8 San Diego Housing Market Overview
9 Source: Greater San Diego Association of Realtors – Monthly Indicators Key
Metrics
March
2021
March
2022
March
2023
March
2024
Year over
Year
Change
Median
Sales Price $700,000 $845,000 $825,000 $890,000 7.9%
Days on
Market 22 18 36 29 (19.4)%
Months
Supply 0.7 0.8 1.2 1.6 33.3%
National Unemployment Rate
10Source: U.S. Bureau of Labor Statistics, The Employment Situation San Diego Unemployment Rate
11 Source: U.S. Bureau of Labor Statistics, Economy at a Glance: San Diego-Carlsbad, CA Fiscal Year 2025 Outlook
12 Restrained growth in
2024/2025
•Interest rates remain
high, inflation, federal
funding related to
COVID/recovery
ending
No recession in
FY2025 predicted
Sales tax growth
slowing, stable low
unemployment
Budget may be
adjusted throughout
the year for economic
impacts
Any revisions to the
budget require a 4/5
vote of the City
Council
Fiscal Year 2025 Service Updates
13 Improved community
services
• Casa Casillas facility
opening
• Expansion of Homeless
Services
• Expanded Parks &
Recreation
programming
Expanded public safety
• Fire
• Bayfront Fire Station
opening
• Expansion of
Transport Services
• Police
• Records and other
technology
improvements
Maintenance of City
assets and
infrastructure
• CIP Program of $81.2
Million funding
multiple projects
• Measure P funded,
repairs and
improvements to
various public facilities
• Addressing ongoing
and deferred
maintenance
General
Fund
15 General Fund
Revenue and Expenditures
(in millions)
General Fund Revenues
(in millions)
16 General
Fund
Revenue
Assumptions
17 Property Tax increase of $3.6M (7.6% growth over FY24 Adopted Budget)
Property Tax In Lieu of Motor Vehicle License Fees (MVLF) increase of $1.8M (6.0% growth over FY24 Adopted Budget) Sales Tax increase of $2.2M (4.8% growth over FY24 Adopted Budget)
Measures A and P Sales Tax increase of $1.5M each (5.3% growth over FY24 Adopted Budget)
Transient Occupancy Tax increase of $0.7M (7.0% growth
over FY24 Adopted Budget)
General Fund Expenditures
(in millions)
18 General Fund Expenditure Assumptions
19 Personnel $14.4M
• LTFP Salary
assumptions
• CalPERS UAL
costs
• Increased
staffing levels
• 15.0 FTE’s
Supplies & Services
$0.1M
• Removal of
elections costs in
FY2024 of $(2M)
• Removal of
Attorney Services
($1M)
• Increase to
insurance
premiums in
FY2025 $1.6M
• Other supplies
increase $1.5M
Utilities/Internal
Service $0.1M
• Rising gas,
electric, and
water costs
• Increased fuel
and maintenance
costs for the City
Fleet
Transfers $0.9M
• Measure A Sales
Tax and Measure
P Sales Tax
transfers.
General Fund Departments
(in thousands)
20 General Fund
Expenditures by
Departments
(Excluding Non-
Departmental)
21 Other Funds
All Funds Summary
Revenue and Expenditures
(in millions)
23 All Funds by Fund Category
Revenue and Expenditures
(in thousands)
24 All Funds Staffing Summary
25 FTE = Full Time Equivalent
Fiscal Year 2025 Staffing Summary
General Fund
26FTE – Full Time Equivalent positions
Fiscal Year 2025 Staffing Summary
Other Funds
27FTE – Full Time Equivalent positions
2018 Measure A Sales Tax Fund
Revenues and Expenditures
(in thousands)
28 2016 Measure P Sales Tax Fund
Revenues and Expenditures
(in thousands)
29 Development Services Fund
Revenues and Expenditures
(in thousands)
30 Sewer Services Revenue Fund
Revenues and Expenditures
(in thousands)
31 Transport Services Fund
Revenues and Expenditures
(in thousands)
32 Fiscal Year 2025
Capital Improvement Program
Summary
Department of Engineering & Capital Projects
33 Gas Tax
$9.3M
12.15%
Highway Bridge Program (HBP)
$34.9M
39.28%
Measure A
$15.2M
19.95%
Measure P
$7.8M
10.18%
Sewer Facility
Replacement
$4M
5.27%
Sewer Income Fund
$50K
0.07%
Sewer Service
Revenue
$250K
0.33% TDIF
$20K
0.03%
TransNet
$9.2M
12.11%
Western PAD Fees
$500K
0.66%
BY FUNDING SOURCE
Capital Improvement Program
$81.2 Million
34 Buildings
$17.9M
22.07%
Drainage
$25K
0.03%
General Gov't
$60K
0.07%
Parks
$1.9M
2.34%
Roadway
$57M
70.18%
Wastewater
$4.3M
5.31%
Capital Improvement Program
$61 Million
BY ASSET MANAGEMENT SYSTEM
Capital Improvement Program
$81.2 Million
35 Major Building ProjectsBuilding Projects
Citywide Building Repair Efforts to Continue in FY 25
PUBLIC BUILDINGS
– Citywide Public Building Repairs
• Roof Replacement
• HVAC
• General Building Repairs
– Fire Training Facility
• New purpose-built facility to provide
training for 230 Fire and EMS personnel
FY2025 Proposed:
$ 15.2M Fire Training Facility (Measure A)
$ 2.7M Citywide Building Repairs (Measure P)
Measure P Expenditure Plan36
Major Building Projects
Park Projects
PATTY DAVIS PARK
• Adds park acreage to western Chula Vista
• Playground areas
• Community garden
• Picnic areas with shelter
• Pathway/trail with art
• Lighting and landscaping throughout
FY2025 Proposed:
• $ 500K (Western Parkland Acquisition and Development (PAD) Fees)
Location: D Street, West of Woodlawn Avenue
$2.36M Total Cost Includes $1.86M State Grant
Construction Anticipated Fall 2024
Parks & Recreation Master Plan
37 Major Building ProjectsPark Projects
PARK IMPROVEMENTS
• Playgrounds
• Sports Courts and Fields
• Irrigation / Plumbing
• Park Lighting
• Park Amenities:
• BBQ Grills
• Benches / Picnic Tables
• Drinking Fountains
• Pathways / Jogging Trails
FY2025 Proposed:
• $1M Park Infrastructure (Measure P)
• $400K Sport Courts & Fields (Measure P)
Locate City Parks and Amenities
38 Major Building Projects
Roadway Projects
Pavement
STREET PAVEMENT & REHAB
• Resurfacing
• Pavement Overlays
• Slurry Seals
FY2025 Proposed:
• $ 14.2M (Gas Tax , TransNet)
Pavement Management System 39
Major Building ProjectsRoadway Projects
Traffic Signals
TRAFFIC SIGNAL REPAIR AND UPGRADE
• Upgrades
• Modifications
• Traffic Signal System Optimization Program
• Pedestrian Improvements
FY2025 Proposed:
• $ 2.6M (Measure P, Gas Tax, TransNet)
Traffic Engineering
• Pedestrian & Bicycle Safety Plan
• Local Road Safety Plan40
Major Building ProjectsRoadway Projects
Sidewalks
SIDEWALK REPLACEMENT
• Citywide Panel Replacement
• Sidewalk Replacement Program
• Replaces damaged curb, gutter, sidewalk, and driveway aprons in public right-of-way
FY2025 Proposed:
• $ 2.4M (Measure P, Gas Tax)
Active Transportation Plan41
Major Building ProjectsMajor Projects
Roadway
Main Street – Nirvana Ave to Heritage Rd
Heritage Road Bridge Replacement
Estimated Cost: $53.6 M
Construction Anticipated Fall 2024
HERITAGE ROAD BRIDGE REPLACEMENT
– Widen Heritage Road
• Main Street to Entertainment Circle
• Heritage Road Bridge Replacement
• 4 Lanes to 6 Lanes
• Sidewalk
• Bike Lanes
– Widen Main Street
• Nirvana Avenue to Heritage Road
• 6-Lane Major
FY2025 Proposed:
• $ 34.97M (Highway Bridge Program (HBP) Grant)
42 Major Building ProjectsMajor Projects
Wastewater
SEWER FACILITY REPLACEMENT
• Rehabilitation and Upsizing
• Access Road Rehabilitation
• Manhole Inspections
FY2025 Proposed:
• $ 4M (Sewer Facility Replacement Fund)
Wastewater Master Plan 43
BY ASSET MANAGEMENT SYSTEM
Capital Improvement Program
5-Year Program
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
FY21
$21.9M
FY22
$49.2M
FY23
$50.5M
FY24
$66.6M
FY25
$81.2M
Building Drainage General Gov't Parks Roadway Wastewater TOTAL CIP 44 Challenges to Maintaining
a Balanced Budget
45 • Impacts from economic
slowdown/inflation
• CalPERS investment losses
• Unfunded Actuarial Liabilities –
growing from $3M to $10M
citywide in 5 years
• Labor Negotiations (Spring/Fall 2024)
• Measure P sunset (April 2027)
• Deferred and ongoing maintenance of
City’s infrastructure
45 Next Steps
46 MAY 21ST – STAFF RECOMMENDS CITY COUNCIL
ACCEPT CITY MANAGER’S PROPOSED BUDGET AS
THEIR OWN AND SET MAY 21, 2024, FOR A PUBLIC
HEARING AND ADOPTION OF THE BUDGET
ADDITIONAL COMMENTS CAN BE SUBMITTED ON
CITY’S WEBSITE (CHULAVISTACA.GOV/BUDGET)
Recommended Action
47 Approve the “Resolution of the City Council/Successor Agency to the Redevelopment Agency /Housing Authority of the City of Chula Vista accepting the City Manager’s Proposed Operating and Capital Improvement Budgets for Fiscal Year 2024-25 for each agency as their Proposed Budgets, respectively, and setting the time and place for a public hearing for final consideration and adoption of the same” on May 21, 2024.
City Council Feedback and
Discussion
48