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May 20, 2025
ITEM TITLE
Annual Budget: Consideration of Adopting the Fiscal Year 202 5-26 Operating and Capital Improvement Budgets and Revised Fiscal Year 2025-26 Compensation Schedule Report Number: 25-0072
Location: No specific geographic location
Department: Finance
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Conduct the public hearing and take the following actions:
A) Adopt a resolution adopting the operating and capital improvement budgets for the City of Chula Vista for fiscal year 2025-26 and appropriating funds for the fiscal year ending June 30, 2026 , excluding Open Space Districts: #01, #20 Zone 5, #20 Zone 7; Community Facilities Districts: 07-M, 97-1, 97-2, 99-2 B) Adopt a resolution adopting the operating budget for Open Space District #01 for fiscal year 2025-26 and appropriating funds for the fiscal year ending June 30, 2026 C) Adopt a resolution adopting the operating budget for Open Space District #20 Zone 5 for fiscal year 2025- 26 and appropriating funds for the fiscal year ending June 30, 2026 D) Adopt a resolution adopting the operating budget for Open Space District # 20 Zone 7 and Community Facilities District 07 -M for fiscal year 202 5-26 and appropriating funds for the fiscal year ending June 30, 2026
E) Adopt a resolution adopting the operating budget for Community Facilities Districts 97-1, 97-2 and 99-2 for fiscal year 2025-26 and appropriating funds for the fiscal year Ending June 30, 2026 P a g e | 2
F) (Housing Authority) Adopt a resolution adopting the operating budget for the Housing Authority for fiscal year 2025-26 and appropriating funds for the fiscal year ending June 30, 2026 G) (Successor Agency) Adopt a resolution adopting the operating budgets for the Successor Agency to the Redevelopment Agency for fiscal year 202 5-26 and appropriating funds for the fiscal year ending June 30, 2026
H) Adopt a resolution amending the Compensation Schedule and Classification Plan to reflect the addition of various position titles and changes in salary as reflected in the fiscal year 2025-26 operating budget I) Adopt a resolution approving the fiscal year 202 5-26 Compensation Schedule effective July 11, 2025, as required by California Code of Regulations, Title 2, Section 570.5 J) Place an ordinance on first reading amending Chula Vista Municipal Code Section 2.05.010 to add the position titles of Deputy Director, City Clerk Services, Information Technology Project Manager and Real Property Manager; delete certain unclassified position titles that are specifically delineated in the City Charter and to delete certain position titles that are no longer active (First Reading) (4/5 Vote Required)
SUMMARY
On May 6, 202 5, the City Council was presented the City Manager’s proposed operating and capital improvement budgets for the City, and the operating budgets for the Housing Authority and for the Successor Agency to the Redevelopment Agency for fiscal year 202 5-26 (ending June 30, 202 6). The City Manager’s Proposed Operating and Capital Improvement Budgets were since amended to : 1) increase the Capital Improvement Budget by $300,000 for Project SAF0171 (Police Substation Feasibility Study ) using the available balance of the Public Facilities Development Impact Fee fund and 2) unfreeze 1.0 Administrative Secretary position in the City Council Department in the General Fund that is offset with additional personnel savings (refer to Attachment 2). The budgets submitted at this time for formal adoption and appropriation represent the City Council’s amended fiscal year 2025-26 Proposed Budget.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of t he State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On April 10, 2025, the Measure A Citizens’ Oversight Committee (COC) affirmed that the proposed budget for the Measure A Sales Tax Fund was in compliance with the City’s approved Intended Public Safety Expenditure Plan.
On April 24, 2025, the Citizens’ Oversight Committee (COC) for Measure P affirmed that the proposed budget for the Measure P Sales Tax Fund was in compliance with the City’s approved infrastruct ure, facilities and equipment expenditure plan.
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On May 15, 2025, the Park and Recreation Commission was presented the fiscal year 2025 -26 Proposed Budget for the Parks and Recreation Department to allow for recommendations regarding the budget.
DISCUSSION
In accordance with the City Charter, the City Manager’s proposed budget was submitted to the City Council at least thirty -five (35) days before the beginning of the fiscal year. A copy of the City Council’s proposed budget was made available on May 2, 2025 for public review by making a hard copy of the budget available at the City Clerk’s Office and at the City’s Libraries, as well as posting a copy of the budget on the City’s website. On May 6, 2025, the City Council was presented the City Manager’s Proposed Operating and Capital Improvement Budgets for the City, and the operating budgets for the Housing Authority and for the Successor Agency to the Redevelopment Agency for fiscal year 202 5-26 (ending June 30, 202 6). At that meeting, t he City Manager’s Proposed Operating and Capital Improvement Budgets were modified by the City Manager to: 1) increase the Capital Improvement Budget of the Public Facilities Development Impact Fee (PFDIF) fund by $300,000 for Project SAF0171 (Police Substation Feasibility Stud y) using available fund balance and 2) unfreeze and appropriate personnel costs for 1.0 Administrative Secretary position in the City Council Department in the General Fund that is offset with additional salary savings in various departments (Attachment 1) . City Council accepted the City Manager’s Proposed Operating and Capital Improvement Budgets and set May 20, 2025 as the date for its adoption.
Attachment 2, Fund Appropriations by Department and Category, summarizes the City Council’s proposed budget for fiscal year 2025 -26. The All Funds expenditure budget submitted for fiscal year 2025 -26 totals $617.2 million. The General Fund budget totals $305.6 million. The All Funds budget for fiscal year 2025-26 includes allocations for capital improvement projects totaling $ 29.6 million. The remaining $ 282.0 million represents the operating budgets for various funds including the Successor Agency to the Redevelopment Agency, Housing, Sewer, Development Services, Fleet, Debt Service, and other funds.
Estimated All Funds revenues total $630.9 million, the Schedule of Revenues is included as Attachment 3.
CITY COUNCIL FISCAL YEAR 2025-26 PROPOSED BUDGET
Category FY 2025 Adopted FY 2026 Proposed
Revenues $608.5 $630.9
Expenditures $595.3 $617.2
Prior Year Fund Balance - -
Surplus/(Deficit) $ 13.2 $13.7
Compensation Schedule
California Code of Regulations (CCR), Title 2, Section 570.5 (CCR Section 570.5) requires that, for purposes of determining a retiring employee's pension allowance, the pay rate be limited to the amount listed on a pay schedule that meets all of the following requirements:
1. Has been duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meetings laws;
2. Identifies the position title for every employee position; P a g e | 4
3. Shows the pay rate for each identified position, which may be stated as a single amount or as multiple amounts within a range;
4. Indicates the time base, including, but not limited to, whether the time base is hourly, daily, biweekly, monthly, bi-monthly, or annually;
5. Is posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posted on the employer’s internet website;
6. Indicates an effective date and date of any revisions;
7. Is retained by the employer and available for public inspection for not less than five years; and
8. Does not reference another document in lieu of disclosing the pay rate. This regulation applies to all employers reporting compensation to California Employees' Retirement System (CalPERS).
Staff is submitting the Fiscal Year 202 5-2026 Compensation Schedule (Attachment 5) that comp lies with these requirements to City Council for approval. If approved, the duly approved and adopted Compensation Schedules will be immediately accessible and available for public review on the City's internet website in accordance with CCR Section 570.5. Failure to comply with this State-mandated approval requirement would delay computation of a retiring employee's pension allowance by CalPERS. Adoption of the 202 5-2026 Compensation Schedule (Attachment 5) pertains to Resolution I.
The Compensation Schedule consists of step salary pay for all established positions at the City of Chula Vista, including hourly and bi -weekly time base. This schedule defines the payment to employees for services performed during normal working hours or for time during which th e employee is excused from work because of holidays, sick leave, industrial disability, payments under Labor Code Section 4850, vacation, compensatory time -off or leave of absence. It is designed and administered to provide and maintain an equitable wage a nd salary system at the City that compensates all employees for their work efforts performed within specific job classifications and corresponding salary ranges, in order to attract and retain the most highly skilled employees possible.
The Compensation Sc hedule (Attachment 5) attached to Resolution I reflects the pay rate of all job titles effective July 11, 2025. Once approved, any changes to the adopted Compensation Schedule including, but not limited to, across-the-board increases, classification change s and salary adjustments approved subsequent to this date will be reflected in a revised Compensation Schedule which will be submitted to Council for approval.
Unclassified Ordinance
Chula Vista Municipal Code Section 2.05.010 requires updates to reflect the position changes impacting the unclassified positions. Chula Vista City Charter Section 500(a) requires that all unclassified positions not mentioned specifically in Charter Section 500(a) be adopted by ordinance. Adoption of the Ordinance will add the position titles of Deputy Director, City Clerk Services, Information Technology Project Manager and Real Property Manager; delete unclassified position titles that are specifically delineated in City Charter sections 500(a), (b) and (c) and those position titles that are no longer active per Municipal Code section
2.05.010 as outlined in Ordinance A.
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Position Summary
The City Council Proposed Budget for fiscal year 2025-26 includes 1,325.75 positions for all funds. This is a net increase of 24.0 positions when compared to the fiscal year 2024 -25 adopted budget that includes 1,301.75 authorized positions. During fiscal year 2024 -25, the City Council approved a decrease of 9.0 positions in the General Fund positions and increase of 17.0 positions across other funds, for a net increase of 8.0 positions citywide. These changes are reflected in the fiscal year 2025-26 proposed budget.
Proposed fiscal year 2025-26 changes in the General Fund are an increase of 11.0 positions, for a net increase of 2.0 FTEs compared to the number of authorized positions for fiscal year 2024 -25. Proposed fiscal year 2025-26 changes in other funds are an increase of 5.0 positions, for a net increase of 22.0 positions compared to the fiscal year 2024-25. In addition to these net chan ges, several reclassification studies were completed citywide to reflect changes of duties performed by City personnel.
The staffing changes are summarized in the following tables and the Proposed Staffing by Department/ Fund for fiscal year 2025-26 is included as Attachment 4.
Summary of Fiscal Year 2024-25 Mid-Year Staffing Changes Department/Fund Program Position FTE
Animal Services (0.00) Veterinary Services
Chief Veterinarian 1.00
Veterinarian II 0.75
Veterinarian (Permitted) (1.75)
Administration (-2.00)
Communications
Chief Communications Officer 1.00
Communications Manager (1.00)
Communications Officer 1.00
Communications/Special Events
Coordinator (1.00)
Community Engagement Spec (1.00)
Public Information Specialist (1.00)
City Clerk (0.00)
Operations
Fiscal Office Specialist (1.00)
Sr Administrative Secretary 1.00
Development Services
(-1.00) Code Enforcement Building Official (1.00)
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Department/Fund Program Position FTE
Development Services
Fund (1.00) Code Enforcement Building Official 1.00
Economic Development
(-5.00) Office of Sustainability
Administrative Technician (1.00)
Conservation Specialist II (3.00)
Environmental Sustainability Mgr (1.00)
Fire (-9.00) Operations Firefighter - A (9.00)
CV Housing Authority
Fund (1.00) Housing and Homeless Services Community Engagement Spec 1.00 Human Resources (0.00) Risk Management
Safety Program Manager 1.00
Sr Risk Management Specialist (1.00)
Library (1.00) Administration Special Events Coordinator 1.00 Measure A Sales Tax Fund
(16.00)
Fire Firefighter - A 9.00
Police
Peace Officer 6.00
Police Captain 1.00
Police (1.00)
Administration Services
Management Analyst I (1.00)
Management Analyst II 1.00
Community Engagement
Public Information Specialist (1.00)
Sr Public Information Specialist 1.00
Patrol Operations Peace Officer 1.00
Police Grant Funds (-1.00) HIDTA CBAG
FA Administrative Program
Manager 1.00
FA Deputy Director LECC (2.00)
FA Deputy Director IV-LECC 1.00
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Department/Fund Program Position FTE
FA Network Administrator II (1.00)
FA Network Administrator III 1.00
FA Prog Asst Supervisor (1.00)
FA Supv Intelligence Analyst I 1.00
California Violence Intervention &
Prevention Program Peace Officer (1.00)
Public Works (6.00)
Administration
Sr Public Works Specialist 1.00
Public Works Specialist (1.00)
Sustainability
Administrative Technician 1.00
Conservation Specialist II 4.00
Environmental Sustainability Mgr 1.00
Sewer Funds (0.00)
Engineering
Engineering Tech II (1.00)
Sr Engineering Tech 1.00
Public Works
Public Works Specialist (1.00)
Sr Public Works Specialist 1.00
Total Citywide 8.00
Fiscal Year 2025-26 Staffing Changes
Department/Fund Program Position FTE
City Attorney (0.00) Advisory & Litigation
Deputy City Attorney II (1.00)
Deputy City Attorney III 1.00
Development Services (0.00) Administration Assistant Dir Development Srvcs (1.00) P a g e | 8
Department/Fund Program Position FTE
Deputy Director Of Development
Srvcs 1.00
Development Services Fund
(1.00)
Current Planning
Assistant Planner (1.00)
Associate Planner 1.00
Facilities Financing Sr Management Analyst 1.00
Finance (0.00) Revenue & Recovery
Accounting Assistant 1.00
Fiscal Office Specialist (1.00)
Fire (9.00) Operations
Fire Captain - A 3.00
Fire Engineer - A 3.00
Firefighter/Paramedic - A 3.00
Measure A Sales Tax Fund (3.00) Fire Firefighter - A 3.00 Police (2.00)
Community Policing Police Comm Relations Spec 1.00
Research & Analysis
Public Safety Analyst (1.00)
Sr Public Safety Analyst 1.00
Police Support Services Sr Records Specialist 1.00
Police Grant Funds (-1.00) Justice Assistance Grant Police Comm Relations Spec (1.00) Public Works (1.00)
Construction and Repair
Electrician (1.00)
Sr Electrician 1.00
Plumber (1.00)
Sr Plumber 1.00
Parks Maintenance Parks Maintenance Worker II 1.00
Parks & Recreation (0.00) Aquatics Aquatic Supv II (1.00) P a g e | 9
Department/Fund Program Position FTE
Aquatic Supv III 1.00
Recreation Facilities
Recreation Supervisor II (1.00)
Recreation Supervisor III 1.00
Sewer Funds (1.00) Wastewater
Engineering Sr Engineering Tech 1.00
Total Citywide 16.00
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Council Member Preciado has real property holdings within 1,000 feet, but beyond 500 feet, of the boundaries of Open Space District 1 ; and, Council Member Inzunza has real property holdings within 1,000 feet, but beyond 500 feet, of the boundaries of Open Space District 31, which are the subjects of this action. However, to the extent that any decision would have a reasonably foreseeable financial effect on the member’s real property, the effect would be nominal, inconsequential, or insignificant. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702(b), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Mayor McCann and Council Member Chavez: For Open Space District #01, which is the subject of Resolution B of this action.
Council Member Chavez: For Open Space District #20 Zone 5, which is the subject of Resolution C of this action.
Mayor McCann: For Open Space District #20 Zone 7 and Community Facilities District 07-M, which are the subject of Resolution D of this action.
Council Member Inzunza: For Community Facilities Districts 97-1, 97-2, 99 -2 which are the subject of Resolution E of this action.
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact as a result of the adoption of the budget.
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ONGOING FISCAL IMPACT
Approval of the proposed budgets will result in the appropriation of $617.2 million in funding for the fiscal year ending June 30, 2026. This amount includes a General Fund budget of $305.6 million.
Category FY 2025 Adopted FY 2026 Proposed Net Change
General Fund
$ 274,124 $ 305,610 $ 31,486
Capital Funds
868 3,070 2,203
Debt Funds
33,766 33,881 115
Development Funds
44,708 11,308 (33,401)
Enterprise Funds
35,394 40,839 5,445
Gas Tax Funds
14,596 15,596 999
Grant Funds
12,151 13,497 1,345
Internal Service Funds
15,253 16,242 989
Measure A Sales Tax
Fund
43,468 33,660 (9,808)
Measure P Sales Tax
Fund
18,807 16,957 (1,850)
Open Space Funds
23,463 31,654 8,191
Other Funds
18,460 34,384 15,924
Pension/Debt Reserve - 149 149
Sewer Funds 52,187 52,309 123
Successor Agency Funds
8,053 8,046 (8)
Total All Funds $ 595,299 $ 617,200 $ 21,902
ATTACHMENTS
1. Fiscal year 2025-26 Proposed Budget
2. Fund Appropriations by Department and Expenditure Category
3. Schedule of Revenues
4. Authorized Positions by Department
5. Fiscal year 2025-26 Compensation Schedule – Effective July 11, 2025
Staff Contact: Sarah Schoen, Director of Finance/Treasurer Ed Prendell, Budget & Analysis Manager