1 Item 9.3: Presentation of City Manager’s
Proposed Budget for Fiscal Year 2026-
2027
Presented
May 5, 2026
Agenda
BUDGET
PROCESS
OVERVIEW
GENERAL FUND
OVERVIEW
OTHER FUNDS
OVERVIEW
CAPITAL
IMPROVEMENT
PROJECTS
OVERVIEW
BUDGET
PROCESS NEXT
STEPS
2 Why is the
City budget
important?
Spending Plan
Strategic Document
Financial Monitoring Tool
Accountability and Transparency
Budget Development Timeline
4 Nov.
Long-Term Financial
Plan
Department Budget
Requests
Jan.
Baseline Budget
Development
March
Mid-Year Review
(Q2 Financial Report)
April
Community Budget
Presentations
May
City Manager’s
Proposed Budget
June
Budget Adopted by
June 30, annually
Community Engagement
• Newsletter, Social Media, Budget
Survey, Council Meetings,
Community Budget Presentations
Community
Engagement
Budget Development Survey
5 •Survey open: 2/16/26 -
3/12/26
•Survey Views: 529
•Participants: 303
• 79% were residents of Chula
Vista
•13 Questions
Feedback on the Budget Process
Budget Communications
Email newsletters
22%
Local news(
newspaper, TV,
or digital news)
16%
City Website
16%
I don't usually
receive
information
about the City's
Budget
13%
Social Media
12%
City Council
meetings
11%
Community
meetings/workshops
5%
Mail or printed
flyers
3%
Other
2%
Overall rating of City’s Budget Process
6 Fair
32%
Poor
15%
Very Poor
4%
Excellent
5%
Good
44%
Service
Priorities
Participants were asked to
rank City services in order of
importance.
Results showed public safety
was a top priority, followed by
economic development and
public parks
7 Fiscal Year 2026-2027 Highlights
Mitigation
Planning /
Monitor and
Adjust
New
Obligations /
Strategic
Enhancements
Core Services
Maintained
Stabilizing
Revenue
Growth
8 General
Fund
Revenues &
Expenditures
(in millions)
9 Category
FY 2026
Adopted
FY 2027
Proposed Change
Revenues $ 305.6 $ 318.1 $ 12.5 Expenditures 305.6 318.1 12.5
Surplus/(Deficit) $ - $ - $ - 9 General
Fund
Revenues
(in millions)
10 Category
FY2026 FY2027
ChangeAdopted Proposed
Major Revenues
Property Taxes $ 58.4 $ 58.7 $ 0.2 Sales Tax 51.2 52.2 0.9
Measure P Sales Tax 30.8 31.3 0.4
Measure A Sales Tax 30.8 31.3 0.4
Franchise Fees 15.4 16 0.6
Utility Users Tax 3.7 3.7 0.1
Property Tax in lieu of VLF 33.8 36.1 2.3
Transient Occupancy Taxes 21.7 19.2 (2.6)
Major Revenues Total $ 246.0 $ 248.4 $ 2.4 Other Revenues 59.6 69.8 10.2
General Fund Revenues
Total $ 305.6 $ 318.1 $ 12.5
10 General Fund Revenues
• Increase based on projected growth of properties
Assessed Valuations in the City ($2.3M)
Property Tax in lieu
of VLF $2.3M (6.4%)
• Decrease of other hotels TOT and short-term rental
Transient Occupancy
Taxes (TOT) $(2.6)M
(-11.7%)
• Increase to Other Revenues for reimbursement
($2.9M)
• Increase to Charges for Services ($2.9M)
• Increase to Transfers In ($4.1M)
Other Revenues
$10.2M (17.1%)
11 General Fund
Expenditures
(in millions)
1212
Category
FY 2026
Adopted
FY 2027
Proposed Change
Personnel Services
Personnel Services $ 128.5 $ 138.3 $ 9.8 Salary Savings (3.6) (5.2) (1.6)
Retirement Benefits 21.0 22.6 1.6
Health Insurance 15.9 16.6 0.7
Personnel Services Total $ 161.8 $ 172.3 $ 10.5 Supplies and Services 28.6 32.9 4.3
Other Expenses 2.7 2.9 0.2
Internal Service 4.6 4.8 0.2
Capital 0.2 0.2 -
Utilities 7.7 9.1 1.4
Transfers Out 100.0 96.0 (4.0)
Total General Fund
Budget $ 305.6 $ 318.1 $ 12.5
General Fund Expenditures
• Labor costs tied to MOU agreements and increase overtime costs ($8.2M), Pension cost increases ($1.5M)
• Health Insurance cost increases ($0.7M)
Personnel
$10.5M (6.5%)
• Contracted Services increase for various contracts ($3.1M) • Increase to insurance premiums ($0.7M)
• Increase to software related costs ($0.4M)
Supplies & Services
$4.3M (15%)
• Rising gas, electric, and water costs ($1.4M)Utilities $1.4M (18.4%)
• Increase Measure A Sales Tax and Measure P Sales Tax
transfers ($0.8M)
• Increase to Other Funds transfers ($2.0M)
• Decrease of Debt Service transfers ($6.3M)
Transfers $(4.0)M
(-4%)
13 General Fund
Net Impact By
Department
(with Measure A)
(Transfers
removed)
(in millions)
14 General Fund Highlights
Supporting Community
Services and Economic
Development
• Animal Services hourly staffing
• Continuing the CV Community
Shuttle past pilot program and
Bayfront Shuttle program
• Opening of Millenia Building
• Completion of Economic
Development Strategic Plan
• Continued University District
Planning Efforts
15 General Fund Highlights
Supporting
Public Safety
Fire
• Fire Academy funding to
maintain staffing levels
• Bayfront Fire Station full-year of
1.0 truck and 1.0 engine
company
Police
• Evidence and vehicle storage
facility lease
16 General Fund Highlights
Expanding
Community Amenities
• Millenia Building operations &
maintenance (opening Fall
2026)
• Additional Special Events
funding: HarborFest, Starlight
Parade, 4th Fest, CV Art Fest
17 Other
Funds
18 Other Funds
Expenditures
by Fund
Category
(in millions)
19 Fund Category
FY 2026
Adopted
FY 2027
Proposed Change
Capital Funds $ 3.1 $ 1.5 $ (1.6) Debt Funds 33.9 33.9 0.0
Development Funds 11.3 13.1 1.8
Enterprise Funds 40.8 41.3 0.5
Gas Tax Fund 15.6 17.1 1.5
Grant Funds 13.5 11.0 (2.5)
Internal Service Funds 16.2 16.8 0.6
Measure A Sales Tax Fund 33.7 37.6 3.9
Measure P Sales Tax Fund 17.0 15.7 (1.3)
Open Space Funds 31.7 32.2 0.6
Other Funds 34.4 42.0 7.6
Pension/Debt Reserve 0.2 12.4 12.3
Sewer Funds 52.3 61.7 9.4
Successor Agency Funds 8.1 6.6 (1.4)
Other Funds Total $ 311.6 $ 342.9 $ 31.3 19 Other Funds Highlights
• Ballfield improvements (Max, Santa Venetia,
Menzel); Lauderbach - Remodel; and various
facility/infrastructure improvements.
Measure P Sales Tax
• Millenia Library Building (Fall 2026 opening)
• Developer Park Contributions Funds –
Ballfields, MacKenzie Creek Pickleball, Greg
Rogers, Patty Davis Park
Other Funds
20 Other Funds Highlights
• Additional Fire Academy costs and Police Dept
drone contract costs
• Fuels Crew funding (supplemented by grants)
Measure A Sales Tax
• Increase costs for sewage treatment fees,
equipment purchases, and CIP Projects.
Sewer Funds
21 Fiscal Y ear 2027
Capital Improvement
Program Summary
Department of Engineering & Capital Projects
Capital Improvement Program
$40.4 Million
BY FUNDING SOURCE
Gas Tax
$11.67M
28.92%
Storm Drain Fund
$600K
1.49%
TransNet
$10.99M
27.22%
Measure P
$4.2M
10.32%
WTDIF
$1.46M
3.61%
Sewer Facility Replacement
$4.74M
11.73%
Developer Park
Contributions
$4.52M
11.19%
Parking Meter
Fund
$200K
0.50%
HSIP
$1.76M
4.36%
Active Transportation Grant
$266K
0.66%
Capital Improvement Program
$40.4 Million
BY ASSET TYPE
Buildings
$1.43M
3.55%
Drainage
$600K
1.49%
Parks
$6.82M
16.89%Roadway
$25.98M
64.37%
Wastewater
$4.74M
11.73%
General Gov't
$793K
1.97%
Major Building ProjectsBuilding Projects
BUILDINGS
– Building Maintenance and Upgrades
• Safety and ADA upgrades
• Interior/exterior repairs
• Building systems (HVAC, electrical, plumbing)
• Access and security improvements
• Roof replacement
FY2027 Proposed:
▪ $ 1.4 M (Measure P)
Spotlight
• Library Renovation
• Civic Library (GGV0271) | $10M
• South Library (GGV0272) | $10M
• State Grant Funding , Measure P
• Planning and Design
Major Building ProjectsPark Projects
PARK IMPROVEMENTS
• Sports Courts and Fields
• Mackenzie Pickleball Courts
• Max Field Renovations
• Patty Davis Park
• Ballpark Lighting
• Santa Venetia Park
• Menzel Field
• Greg Rogers Park
FY2027 Proposed:
• $6.8M Measure P / Developer Park Contributions
Spotlight
- Eucalyptus Park Renovation (PRK0340)
- Measure P , Grant, ARPA, Developer Park
Contributions, CIP Fund
- $20M | Construction Phase
Major Building ProjectsMajor Projects
Wastewater
SEWER FACILITY REPLACEMENT
• Rehabilitation and Upsizing
• Access Road Rehabilitation
• Wastewater Infrastructure Planning
Program
• Manhole Inspections
• Poggi Canyon Sewer Improvements
FY2027 Proposed:
▪ $4.7M (Sewer Facility Replacement Fund) Spotlight
- Sewer Access Rehab Project (SWR0294)
- Sewer Facility Replacement
- $1M | Construction Phase
Major Building ProjectsDrainage
Storm Drain Program Updates
- Assess long-term sustainability of the storm drain
system
- Establish a citywide strategy for capital investment
and maintenance
- Modernize the drainage master plan using current
data and conditions
- Identify system gaps to prioritize future
improvements
FY2027 Proposed:
▪ $ 600K (Storm Drain Fund) Spotlight
- CMP Rehab (Outside Right-of-Way), Phase III
(DRN0219)
Measure P | $2M Award in Progress
Major Building Projects
Roadway Projects
Pavement
STREET PAVEMENT & REHAB
• Resurfacing
• Pavement Overlays
• Slurry Seals
FY2027 Proposed:
• $ 14.7M (Gas Tax , TransNet) Spotlight
- Pavement Major Rehabilitation Program
(STM0411,STM0404, STM0414)
- Gas T ax/TransNet | $14.5M
- Bidding in Progress
Major Building ProjectsRoadway Projects
Traffic Improvements
TRAFFIC IMPROVEMENTS
SIGNALS, BIKE AND PEDESTRIAN IMPROVEMENTS
• Signal Upgrades & Modifications
• Traffic Signal System Optimization Program
• Traffic Operations Investigation Program
• Pedestrian Curb Ramp Program
• Bikeway Gap & Connectivity Improvements
FY2027 Proposed:
• $ 10.6M (Gas Tax, TransNet, ATP Grant,
Parking Meter Fund, Western TDIF)
Spotlight
- Telegraph Canyon Raised Median / Pedestrian
Crosswalk at Castle Park(TRF0411, TRF0415)
- Gas Tax/TransNet | $1.4M
- In Construction
Major Building ProjectsRoadway Projects
Sidewalks
Sidewalk
• Sidewalk Panel Replacement Program
• Sidewalk Replacement Program
• Pedestrian Curb Ramp Program
• Bikeway Gap & Connectivity Improvements
FY2027 Proposed:
• $ 4.4M (Gas Tax, TransNet, ATP Grant
Parking Meter Fund, Western TDIF)
Spotlight
- Third Avenue ADA Parking Stalls (STL0480)
- TransNet, Parking Meter Fund | $1.1M
- FY27 CIP Proposal
HISTORICAL BUDGET BY ASSET TYPE
Adopted CIP Budget Overview
FY23-FY26 Adopted; FY27 Proposed
Next Steps
www.chulavistaca.gov/Budget
MAY 19
City Council public hearing and
adoption of FY 2026 -27 Proposed
Budget and Capital Improvement
Program Budget
Additional comments can be submitted
on the City’s website .
(www.chulavistaca.gov/Budget )
33 Recommended Action
34 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 2026 -27 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 19, 2026.