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May 19, 2026
ITEM TITLE
Annual Budget: Consideration of Adopting the Fiscal Year 202 6-27 Operating and Capital Improvement Budgets and Revised Fiscal Year 2026-27 Compensation Schedule Report Number: 26-0067
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. Under the National Environmental Policy Act, the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations.
Recommended Action
Conduct the public hearing and adopt the following resolutions:
A) Adopting the operating and capital improvement budgets for the City of Chula Vista for fiscal year 2026- 27 and appropriating funds for the fiscal year ending June 30, 2027, excluding Open Space Districts: #01, #20 Zone 5, #20 Zone 7; Community Facilities Districts: 07-M, 97-1, 97-2, 99-2; and Capital Improvement Project PRK0349
B) Adopting the operating budget for Open Space District #01 for fiscal year 202 6-27 and appropriating funds for the fiscal year ending June 30, 2027
C) Adopting the operating budget for Open Space District #20 Zone 5 for fiscal year 202 6-27 and appropriating funds for the fiscal year ending June 30, 2027 D) Adopting the operating budget for Open Space District #20 Zone 7 , Community Facilities District 07 -M, and Capital Improvement Project PRK0349 for fiscal year 2026-27 and appropriating funds for the fiscal year ending June 30, 2027
E) Adopting the operating budget for Community Facilities Districts 97-1, 97-2 and 99-2 for fiscal year 2026- 27 and appropriating funds for the fiscal year Ending June 30, 2027 P a g e | 2
F) (Housing Authority) Adopting the operating budget for the Housing Authority for fiscal year 2026-27 and appropriating funds for the fiscal year ending June 30, 2027 G) (Successor Agency) Adopting the operating budgets for the Successor Agency to the Redevelopment Agency for fiscal year 2026-27 and appropriating funds for the fiscal year ending June 30, 2027 H) 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 2026-27 operating budget I) Approving the fiscal year 2026-27 Compensation Schedule effective July 10, 2026, as required by California Code of Regulations, Title 2, Section 570.5
J) Approving the amended compensation summary for all Unrepresented employees and elected officials , including authorization for the Mayor to execute any necessary contract amendments to implement said amended compensation summary (4/5 Vote Required)
SUMMARY
On May 5 , 202 6, 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 2026-27 (ending June 30, 2027). The budgets submitted at this time for formal adoption and appropriation represent the City Council’s Fiscal Year 2026-27 Proposed Budget.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the 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. Under the National Environmental Policy Act (NEPA), the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations. Thus, no further environmental review is necessary at this time.
Each of the projects identified in the Capital Improvement budget has been or is in the process of being reviewed or will require review under CEQA at a future time in accordance with the State CEQA Guidelines and the City’s Municipal Code. This determination is predicated on CEQA Guidelines Section 15004, which provides direction to lead agencies on the appropriate timing for environmental review. Similarly, as part of the Housing and Urban Development (HUD) process for releasing funds to the City, the City will comply with the applicable requirements of National Environmental Policy Act (NEPA) [24 C.F.R. Section 58.22(a)] for each Housing Authority budget project before committing funding and/or awarding or entering into a contract for a project.
COMMUNITY ENGAGEMENT
Community engagement efforts for this item included: public outreach through social media channels, which advertised City budget meetings and an online budget survey; citywide Communication Connection newsletters highlighting key financial information; City staff hosting community budget meetings; and an P a g e | 3
online budget survey. Public comments c ould also be submitted on the development of the budget via a Budget Comment Form on the City’s website, which is available on a continuous basis.
To help inform budget priorities and better understand what services matter most to the community, an anonymous online public survey titled “Budget Development for Fiscal Year 2026 -27” was conducted from February 16, 2026 to March 12, 2026 via the City’s Community Voices portal. The survey was designed to be accessible and user -friendly, allowing residents to provide feedback while also learning about the City’s budget framework. 303 participants responded to survey, generating 7,348 total responses and 254 written comments and reflecting a meaningful level of community engagement. Respondents were primarily City residents and represented a range of geographic areas and demographic groups. Results indicate that participants place a high priority on public sa fety, infrastructure maintenance, and community programs.
While participants viewed the survey as a positive tool for community involvement, the results also underscore the need to expand public education on the budget development process and enhance community engagement, a priority that will continue to guide the Finance Department’s work for the fiscal year 2027-28 budget development process.
Three Community Budget Presentation meetings were held to discuss the fiscal year 2026-27 budget with the community: April 15, 2026 at Civic Library, April 22, 2026 at Otay Ranch Library, and May 4 ,, 2026 at Norman Park Senior Center. Staff presented an overview of the City’s annual budget development process; preliminary information on the fiscal year 2026 -27 budgeted General Fund revenues and expenditures; highlights for other major funds ; as well as information on the fiscal year 2026 -27 Capital Improvement Program (CIP) budget.
Community feedback received through these engagement efforts was considered in the development of the City Manager’s Proposed Budget for fiscal year 2026 -27 and is reflected in the recommendation presented to the City Council.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On April 9, 202 6, the Measure A Citizens’ Oversight Committee (COC) a ffirmed that the City Manager’s Proposed Budget for fiscal year 2026-27 for the Measure A Sales Tax Fund was in compliance with the City’s approved Intended Public Safety Expenditure Plan.
On April 16, 2026, the Park and Recreation Commission was presented the City Manager’s Proposed Budget for fiscal year 2026 -27 for the Parks and Recreation Department to allow for recommendations regarding the budget.
As of the publication of this item, the Measure P Citizens’ Oversight Committee (COC) is scheduled to mee t the evening of May 14, 2026, to consider affirming that the City Manager’s Proposed Budget for fiscal year 2026–27 for the Measure P Sales Tax Fund is in compliance with the City’s approved Infrastructure, Facilities, and Equipment Expenditure Plan. The COC’s input will be uploaded as a separate attachment to this item as soon as possible following its meeting.
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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 1, 2026 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 5, 2026, 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 2026-27 (ending June 30, 2027). City Council accepted the City Manager’s Proposed Operating and Capital Improvement Budgets and set May 19, 2026 as the date for its adoption.
Attachment 2, Fund Appropriations by Department and Category, summarizes the City Council’s proposed budget for fiscal year 202 6-27. The All Funds expenditu re budget submitted for fiscal year 202 6-27 totals $661.0 million. The General Fund budget totals $318.1 million. The All Funds budget for fiscal year 2026-27 includes allocations for capital improvement projects totaling $ 40.3 million. The remaining $302.6 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 $653.1 million, the Schedule of Revenues is included as Attachment 3.
CITY COUNCIL FISCAL YEAR 2026-27 PROPOSED BUDGET
Category FY 2026 Adopted FY 2027 Proposed
Revenues $630.9 $653.1
Expenditures $617.2 $661.0
Prior Year Fund Balance - $7.9
Surplus/(Deficit) $13.7 $0.0
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;
3. Shows the p ay 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; P a g e | 5
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 6-2027 Compensation Schedule (Attachment 5) that complies 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 interne t 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 Fiscal Year 2026- 2027 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 the 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 a nd administered to provide and maintain an equitable wage and 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 Schedule (Attachment 5) attached to Resolution I reflects the pay rate of all job titles effective July 10, 2026. Once approved, any changes to the adopted Compensation Schedule including, but not li mited to, across -the-board increases, classification changes and salary adjustments approved subsequent to this date will be reflected in a revised Compensation Schedule which will be submitted to Council for approval.
Summary of Fiscal Year 2025-26 Mid-Year Staffing Changes Department/Fund Program Position FTE
Administration (1.00)
Real Property Real Property Manager 1.00
Administration
Deputy City Manager/Director of Public
Works (1.00)
Deputy City Manager/Development
Services 1.00
City Clerk (1.00)
Operations Senior Deputy City Clerk 1.00
City Council (1.00) Administration Administrative Secretary (Mayor, At Will) – Frozen/Unfunded (1.00)
Development Services
(-1.00) Administration Director of Development Services (1.00) Economic Development
(1.00)
Economic Development
Administration Director of Economic Development 1.00
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Department/Fund Program Position FTE
Engineering & Capital
Projects (-3.00)
Fiscal Sustainability Administrative Technician 1.00
Infrastructure Projects Associate Engineer (3.00)
Building Projects
Building Projects Manager 2.00
Building Services Manager 1.00
Administration Management Analyst II 1.00
Engineering
Public Works Inspector II (4.00)
Senior Civil Engineer (1.00)
Senior Public Works Inspector (1.00)
Fiscal Sustainability Senior Management Analyst 1.00
Finance (0.00) Revenue & Recovery
Accountant 1.00
Accounting Assistant (1.00)
Grant Funds (-1.00) Police Peace Officer (1.00)
Measure A (15.00) Police Peace Officer 15.00
Police (-15.00) Community Patrol Peace Officer (15.00)
Public Works (3.0)
Administration Director of Public Works 1.00
Project Management
Building Projects Manager (2.00)
Building Services Manager (1.00)
Management Analyst II (1.00)
Parks Maintenance
Equipment Operator 1.00
Senior Parks Maintenance Worker (1.00)
Public Works Inspection
Public Works Inspector Manager 1.00
Public Works Inspector II 4.00
Senior Public Works Inspector 2.00
Real Property Real Property Manager (1.00)
Fleet Management Fund
(1.00) Central Garage Operations Equipment Mechanic 1.00 Sewer Funds (0.00) Engineering
Environmental Compliance Inspector 1.00
Senior Engineering Technician (1.00)
Total Citywide 1.00
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Fiscal Year 2026-27 Staffing Changes
Department/Fund Program Position FTE
Administration (2.0) Administration Admin
Community Engagement
Specialist 1.0
Special Events Coordinator 1.0
Animal Care Services (0.0) Administration
Deputy Director of Animal
Services (1.00)
Management Analyst II (1.00)
Public Information Specialist 1.00
Senior Management Analyst 1.00
City Attorney (1.0) Advisory Deputy City Attorney III 1.00 Engineering & Capital Projects
(0.0) Fiscal Sustainability
Administrative Services
Manager 1.00
Principal Management Analyst (1.00)
Finance (-1.0) Revenue & Recovery
Accounting Assistant 1.00
Accounting Technician (1.00)
Business License Representative (1.00)
Fire (1.0) Operations Emergency Services Manager 1.00
Grant Funds (-1.0) Fire Emergency Services Manager (1.00) Human Resources (1.5)
Employee Development Human Resources Manager 1.00
Risk Management Risk Management Specialist 0.50
Housing & Homeless Service (1.0) Housing & Homeless Services Community Engagement Specialist (1.00)
Information Technology (0.5) Geographic Information
Systems GIS Technician 0.50
Library (-1.0) Library Administration Special Events Coordinator (1.00) Police (2.0) Parking Enforcement Parking Enforcement Officer 2.00 Public Works (-1.0)
Public Works Administration
Administrative Services
Manager 1.00
Principal Management Analyst (1.00)
Sustainability Conservation Specialist II (1.00)
Sewer Funds (1.0) Sewer Billing and Collection Accounting Technician 1.00 Total Citywide 4.00
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DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Councilmember Preciado has real property holdings within 1,000 feet, but beyond 500 feet, of the boundaries of Open Space District 1 ; and, Councilmember 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 Councilmember Chavez: For Open Space District #01, which is the subject of Resolution B of this action.
Councilmember 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 , Community Facilities District 07 -M, and Capital Improvement Project PRK0349, which are the subject of Resolution D of this action.
Councilmember 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.
ONGOING FISCAL IMPACT
Approval of the proposed budgets will result in the appropriation of $661.0 million in funding for the fiscal year ending June 30, 2027. This amount includes a General Fund budget of $318.1 million.
Category
FY 2026 Adopted
(Thousands)
FY 2027 Proposed
(Thousands)
Net Change
(Thousands)
General Fund $305,610 $318,139 $12,529
Capital Funds 3,070 1,480 (1,590)
Debt Funds 33,881 33,912 31
Development Funds 11,308 13,060 1,752
Enterprise Funds 40,839 41,297 458
Gas Tax Fund 15,596 17,122 1,526
Grant Funds 13,497 11,017 (2,480)
Internal Service Funds 16,242 16,814 572
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Category
FY 2026 Adopted
(Thousands)
FY 2027 Proposed
(Thousands)
Net Change
(Thousands)
Measure A Sales Tax Fund 33,660 37,578 3,919
Measure P Sales Tax Fund 16,957 15,656 (1,302)
Open Space Funds 31,654 32,218 564
Other Funds 34,384 42,008 7,624
Pension/Debt Reserve 149 12,403 12,254
Sewer Funds 52,309 61,670 9,361
Successor Agency Funds 8,046 6,631 (1,415)
Total All Funds $617,200 $661,004 $43,804
ATTACHMENTS
1. Fiscal year 2026-27 Proposed Budget
2. Fund Appropriations by Department and Expenditure Category
3. Schedule of Revenues
4. Authorized Positions by Department
5. Fiscal year 2026-27 Compensation Schedule – Effective July 10, 2026
6. Revised Unrepresented Compensation Summary Fiscal Years 2024-25, 2025-26, 2026-27
Staff Contact: Adrian Del Rio, Director of Finance/Treasurer Ed Prendell, Budget & Analysis Manager