City Council Study Session
May 13, 2025
FY 2025-26
PROPOSED OPERATING AND
CAPITAL IMPROVEMENT BUDGET
1 “Focused. Efficient.
Resilient.”
2 3
FY 2025-26 PROPOSED BUDGET OVERVIEW
• Economic Update
• FY 2025-26 Proposed Budget Guiding Principles
• FY 2025-26 Estimated Revenue Highlights
• FY 2025-26 Proposed Expenditures Overview
• Status of General Fund Reserves
• Major Accomplishments
• Budget Calendar
ECONOMIC UPDATE
5 • U.S Economy is currently being driven by the theme of “uncertainty”:
• Dynamic fiscal policy (i.e., Tariffs) is negatively impacting “soft data” (e.g., Consumer Confidence) in the near term, while “hard data” (e.g., Retail Sales, Unemployment) remains neutral to positive thus far.
• U.S. Consumer Confidence is at the lowest point since the onset of the COVID pandemic; Consumer Expectations Index is at the lowest level since 2011.
• Retail Sales however had a strong March, driven by consumers rushing purchases (such as Autos and Electronics) ahead of the announced pending tariffs in April. • “Liberation Day” (April 2nd) caused a subsequent massive stock market selloff, that has thereafter responded positively to news of any new trade agreements or negotiations. • On Monday, May 12th, the U.S. and China announced a trade truce that temporarily reduced tariffs between the two nations, causing the stock market to rise over 3% on the day. • Recession odds for this year have decreased but are still elevated (even after the U.S./China trade truce); a general economic slowdown is still expected. • Travel and Discretionary Spending are the most at risk of slowdowns this year. • California Governor’s Proposed Budget May Revision for California FY 2025-26 Budget is scheduled for May 14, 2025.
STATE OF THE ECONOMY
6 FY 2025-26 Proposed Budget was inspired by the
Five Strategic Plan Goals:
• Strengthen Public Safety And Improve The Quality Of Life • Diversify, Stabilize, and Increase Housing To Reflect Community Needs
• Advance Environmental Sustainability And Climate Resiliency • Recruit And Retain High Quality Staff
• Achieve Long-Term Fiscal Sustainability
GUIDING PRINCIPLES
````
FY 2025-26
PROPOSED OPERATING AND
CAPITAL IMPROVEMENT
BUDGET OVERVIEW
8 FISCAL YEAR 2025-26 PROPOSED BUDGET
ALL FUNDS OVERVIEW
Highlights:
• The Proposed Budget for FY 2025-26 All Funds is $224.4M, a $15.4M or 6% decrease from the current fiscal year;
• Designating $101.7M, or 54%, in General Fund resources to public safety; • Investing $16.7M into the City’s parks, streets, active transportation network, facilities, and other infrastructure;
• Increase of $1.8M to the annual required CalPERS contributions; • Fully annualizes labor contracts;
• Includes funding for current labor negotiations; and
• Funds $1.3M to the Housing Authority Fund.
9 • General Fund – general operating fund of the City, unrestricted; • Special Revenue Funds – grants (Federal, State and/or County), restricted funding sources
E.g. American Rescue Plan Fund, Measure M, Gas Tax, RMRA, etc.; • Internal Service Funds – used to finance and account for activities involved in rendering equipment replacement, self-insurance services, and information technology replacement to departments within the City. Costs of materials, equipment, and services used are accumulated in these funds and charged to the user departments.
Equipment Replacement Fund
Self-Insurance Fund
Information Technology Replacement Fund
• Capital Improvement Fund – used to finance and track financial activities that are designated as capital projects ($30K and above including staff time). Large capital projects normally span over multiple fiscal years.
ALL FUNDS DESCRIPTION
10 FISCAL YEAR 2025-26 ALL FUNDS
$224.4 MILLION
General Fund
$186.9M
83%
Special
Revenue Funds
$17.2M
8%
Capital
Projects Funds
$6.1M
3%
Internal Service
Funds
$14.2M
6%
11 FY 2025-26 ALL FUNDS APPROPRIATIONS
$224.4M
Appropriations Adopted Proposed Increase /(Decrease)
All Funds FY 2024-25 FY 2025-26 Amount Percent
Operating Budget $ 199,282,606 $ 204,133,821 $ 4,851,215 2% Transfers Out 12,631,498 3,547,836 (9,083,662) -72%
Capital Budget 27,901,236 16,693,612 (11,207,624) -40%
Total $ 239,815,340 $ 224,375,269 $ (15,440,071) -6%
ALL FUNDS
• General Fund continues the contribution of $1.3M to the Housing Authority Fund to support the Homeless Shelter and programs;
• Includes Assemblywoman Cottie Petrie-Norris’ $750,000 State Grant to fund the Housing Authority Fund to support the City’s Homeless Program; • Includes funding for all contractual obligations (e.g. Mercy House, Bracken’s Kitchen); and
• Fully accounts for the contractual increase with Newport Beach with an increase of $41,000 for 25 beds at the Bridge Shelter.
HOUSING AUTHORITY
12 INTERNAL SERVICE
FUNDS
• Information Technology Replacement Fund
Investment for the Information Technology Strategic Plan (ITSP) for $2.8M, including:
$1.2M for year one of a ten-year depreciation schedule for the replacement of major software programs;
$1.1M for salaries and benefits expense (3 Full-Time Employees); and $0.5M towards the Citywide Desktop Replacement Program. • Self-Insurance Internal Service Fund
$320K in additional funding for increases to insurance premiums.
INFORMATION TECHNOLOGY
REPLACEMENT & SELF INSURANCE FUNDS
13 14
SPECIAL
REVENUE FUND
• Allocates ½ percent of the seven percent Cannabis Retail and Delivery Tax (Measure Q) funding for Year Four of the goals outlined in the Arts and Culture Master Plan ($416,990); and
• Fund has approximately $175K shortfall to fully support the City’s annual art programs and goals based on ½ percent of $3.6M in total Measure Q revenues. • Arts Commission voted on May 1, 2025 to recommend to increase the FY 2025-26 budget:
1. Reallocate the $100,000 for Smart Camp: to increase the Grants account by $40,000, and leave $60,000 for Smart Camp.
2. Rollover $110,735 from FY 2024-25 unspent appropriated budget from the Large-Scale Public Arts Program. Repurpose the FY 2025-26 budget allocation toward $60,000 for a public/private mural art program.
ARTS AND CULTURE MASTER PLAN FUND
15 SPECIAL
REVENUE FUND
ARTS AND CULTURE MASTER PLAN FUND
FY 2024-25
Adopted Budget
FY 2024-25
Amended Budget
FY 2025-26
Proposed
Budget
Art Commission's
Recommendation FY
2025-26
Difference
Revenues
Cannabis Q Business Tax 238,300 238,300 227,472 227,472 - Operating Transfers In - - - - -
Total Revenue 238,300 238,300 227,472 227,472 -
Expenditures
Arts Specialist 170,695 170,695 179,690 179,690 -
Free Arts Experiences City Wide
-Art Venture 20,000 20,000 20,000 20,000 -
-Galleries 400 400 400 400 -
-Action Arts 10,000 10,000 10,000 10,000 -
-Free Park Performances 36,000 36,000 48,000 48,000 -
-Art Crawl 3,000 3,000 3,000 3,000 -
-Segerstrom Center Campus 60,000 - 60,000 60,000 -
Subtotal 129,400 69,400 141,400 141,400 -
-
Commissioner Stipend 8,400 8,400 8,400 8,400 -
Artist Laureate 2,500 121,711 2,500 2,500 -
Subtotal 10,900 130,111 10,900 10,900 -
Expand Public Art
-Utility Box Art 12,500 12,500 12,500 12,500 -
-Large Scale 60,000 60,000 60,000 170,735 110,735
Subtotal 72,500 72,500 72,500 183,235 110,735
-
Grants 10,000 20,000 12,500 52,500 40,000
Total Expenditures 393,495 462,706 416,990 567,725 150,735 Net (155,195) (224,406) (189,518) (340,253) (150,735)
REQUESTED CHANGE IN POSITIONS
16 Department Job Title FTE
Other Funds: Housing Authority Fund
City Manager’s Office Community Outreach Worker (1.00)
Other Funds Total (1.00)
General Fund
City Manager’s Office Human Resources Analyst (1.00)
City Manager’s Office Programmer Analyst I (1.00)
City Manager’s Office Sr. Management Analyst (CON) (1.00) Police Department Custody Officer 1.00
General Fund Total (2.00)
Grand Total All Funds Impact (3.00)
REQUESTED NEW POSITIONS
17 RECOMMENDED FROZEN POSITIONS
Department Job Title FTE
Other Funds
Development Services Office Specialist II (1.00)
Other Funds Total (1.00)
General Fund
Development Services Chief of Code Enforcement (1.00)
Development Services Code Enforcement Officer II (1.00) Parks and Community Services Office Specialist II (1.00) Public Works Engineering Technician III (1.00)
Public Works Facilities Maintenance Technician (1.00)
Public Works Maintenance Supervisor (1.00)
Public Works Senior Engineer (1.00)
General Fund Total (7.00)
Grand Total All Funds Impact (8.00)*
*FTE will not be eliminated; however, funding will be adjusted to account for the frozen positions. 18 CIP FUNDING SOURCES
16 * Projects funded by grants: Adams Avenue Active Transportation Improvements – Multipurpose Trails ($4,223,000); Clean Mobility Options Program ($500,000); Fairview Road Active Transportation Improvements – Fair Dr. to Adams Ave. ($1,759,000); and Pedestrian Safety Festival ($400,000).
FUND AMOUNT
Gas Tax (HUTA) $ 1,040,000
CDBG 230,000
Traffic Impact Fee 420,000
Cannabis Traffic Impact Fees 150,000
Gas Tax (RMRA) 2,951,612
Capital Improvement Program 2,150,000
Measure M2 Fairshare 2,820,000
Jack Hammett Improvement 100,000
Grant Funds* 6,882,000
All Funds Subtotal $ 16,743,612
Future Bond/ Financing 12,000,000
All Funds Grand Total $ 28,743,612
19 Capital Improvement Program (CIP) All Funds Budget FY 2025-26 is $28.7M, which includes $12.0M for Fire Station #2 reconstruction project. • Adams Avenue Active Transportation Improvements – Multipurpose Trails • Harbor Boulevard Rehabilitation Project (RMRA funds)
• Park Security Lighting Replacement
• Bicycle and Pedestrian Infrastructure Improvements
• Clean Mobility Options Program - On-Demand Transit Services • Pedestrian Safety Festival
• Fire Station #2 Reconstruction (Future Bond Funding)
CIP HIGHLIGHTS
16 Note: Staff is requesting for a full waiver of a 5% General Fund contribution towards the Capital Assets Needs (CAN) for FY 2025-
26. Public Works will be utilizing fund balance in the Capital Improvement Program (Fund 401) to fund $2.2 million in projects in the Proposed FY 2025-26 Capital Improvement Program (Fund 401). 20 ALL
FUNDS
FY 2025-26 CIP IMPROVEMENT AREAS
BY CATEGORY
Parkways &
Medians, $0.1M,
(0.4%)
Parks, $0.6M, (2%)
Facilities, $12.3M,
(43%) Transportation,
$8.5M, (30%)
Streets, $7.3M,
(25%)
PROPOSED CIP BUDGET BY CATAGORY $28.7M
````
FY 2025-26
PROPOSED GENERAL FUND
BUDGET OVERVIEW
22 GENERAL FUND OVERVIEW (IN MILLIONS)
* Staff is requesting to enact the “Emergency Exception” clause of the Capital Asset Needs Ordinance, and utilize available fund balance in the Capital Improvement Program (Fund 401) to fund $2.2 million in projects in the Proposed FY 2025-26 Capital Improvement Program budget to ensure compliance with the required maintenance of effort (MOE).
Adopted vs Proposed
Increase/(Decrease)
Category Adopted FY
2024-25
Amended FY
2024-25
Proposed FY
2025-26 Amount Percent
Estimated Revenues $189.9 $184.0 $186.9 -$3.0 -2%
Total Sources of Funds $189.9 $184.0 $186.9 -$3.0 -2%
Expenditures
Operating Budget 180.2 177.2 184.6 4.4 2%
Transfers Out 9.7 6.8 2.3* -7.4 -76%
Total Uses of Funds $189.9 $184.0 $186.9 -$3.0 -2%
Total Surplus/(Deficit) - - - -
23 • General Fund revenue is projected at $186.9M, reflecting a decrease of $3.0M, or 2% from the FY 2024-25 Adopted Budget;
• Sales Tax is estimated at $75.1M, a decrease of $6.4M, or 8% from FY 2024-25 Adopted Budget;
• Property Taxes are estimated at $63.0M, reflecting a 4% growth over the current fiscal year;
• Transient Occupancy Tax are estimated at $9.8M, reflecting a 3% decrease from FY 2024-25 Adopted Budget of $10.1M;
• Fees and Charges are estimated at $13.2M reflecting a decrease $84K from the FY 2024-25 Adopted Budget; the proposed budget includes some proposed targeted increases based on a User and Regulatory Fee Study; and • Cannabis taxes are estimated at $3.6M, an increased by $196K, or 6% from the current year budget.
GENERAL FUND REVENUE HIGHLIGHTS
24 GENERAL FUND REVENUE HIGHLIGHTS
New Proposed Cost Recovery Fees
• Technology Enhancement Fee
- To recover costs of future development related technology enhancements and system replacement - The proposed fee will be collected as 5% of applicable permit fees • General Plan Update Fee
- A new fee is proposed to help offset the costs of General Plan and supporting document updates - The proposed fee will be collected as 5% of applicable permit fees • Credit Card Transaction Processing Fee
- The new fee is intended to offset processing fees charged by the City’s credit card payment processors - Fee will only apply to applicants that pay fees with a credit card. - The proposed fee is 2.7% of the amount paid by credit card • Inflationary Adjustments Fees
- CPI increase of 3.5% will be applied
• Golf Course budget reflects increases to greens fees of $2 for Juniors and Seniors (M-Th), $3 for Twilight ($4 Fri-Sun), and $5 for 18 holes ($6 Sat/Sun). • Tennis Center court rental fees are being reviewed but would only have minimal impact to budget regardless.
25 FY 2025-26 PROPOSED
GENERAL FUND REVENUE
Sales Tax
$75.1M
(40%)
Cannabis Gross
Receipts Tax
$3.6M
(2%)
Transient Occupancy Tax
$9.8M
(5%)
Licenses and Permits
$5.7M
(3%)
Use of Money &
Property
$5.1M
(3%)
Fees & Charges
$13.2M
(7%)
Other Revenues
$1.3M
(1%)
Property Tax
$63.0M
(34%)
Franchise Fees
$6.9M
(4%)
Fines and Forfeitures
$1.3M
(1%)
Other Government
Agencies
$1.0M
(0%)
Business
License
$0.9M
(0%)
Total Revenues – General Fund by Category $186,855,606
26 FY 2025-26 PROPOSED GENERAL FUND HIGHLIGHTS
• Structurally balanced budget with no use of General Fund Reserves or ARPA Funds; • Includes 54% commitment to Public Safety;
• Funds 1.0 new Custody Officer position in the General Fund, while reducing 3 positions for a net decrease 2 FTEs in the General Fund;
• Staff is requesting to enact the “Emergency Exception” clause of the 5% General Fund revenue contribution towards the Capital Assets Needs (CAN); • City staff is recommending to utilize available fund balance in the Capital Improvement Program (Fund 401) to fund $2.2M in projects. The total proposed CIP is $28.7M, which includes $12.0M of a future bond for the Fire Station #2 Reconstruction Project; • Includes $1.8M in CalPERS year-over-year increase as per CalPERS regulations; • Continues the $4.3M vacancy factor (negative appropriation) in the budget, of which $3.7M is in the Police Department; and
• Allocate $2.8 million to ensure compliance with the Information Technology Needs Municipal Code requirement of 1.5% of General Fund revenue. 27 STRENGTHEN THE PUBLIC’S SAFETY
Public Safety Represents 55% of General Fund
Total Appropriations – General Fund by Department $186.9 Million (Includes CIP)
Police Department:
• Sworn staffing levels at 142 positions;
• Highest level of Police sworn staffing since the Great Recession; • Other annualized enhancements include:
One Custody Officer (Non-Sworn);
Salaries and benefits budget increased by a net of $1.0M to fully fund contractual obligations;
$1.0M in funding for new vehicles; and
$59,915 increase for gun range maintenance, mobile data connection services for first responders, and public safety health counseling services.
GENERAL
FUND
STRENGTHEN THE PUBLIC’S SAFETY
30 Fire and Rescue Department
• Sworn staffing levels at 85 positions;
• Salaries and benefits budget increased by a net of $1.1 million to fund contractual obligations;
• Increase $30,000 for firefighters’ personal protective equipment; • Increase $20,000 for training for Emergency Operations Center, and Telecommunications Staff; and
• Allocate $99,000 for a light truck for the Community Risk Reduction program.
GENERAL
FUND
STRENGTHEN THE PUBLIC’S SAFETY
29 ````
Achieve Long-Term Fiscal Sustainability
“Focused. Efficient. Resilient.”
31 FUND BALANCE - GENERAL FUND
(IN THOUSANDS)
Fund Balance
Category
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Audited Audited Audited Audited Estimate
Committed
Declared Disasters $14,125 $14,125 $14,125 $14,125 $14,125 Self-Insurance 2,000 2,000 2,000 2,000 2,000
Economic Reserves 9,000 9,000 9,000 9,000 9,000
Assigned
Compensated Absences 5,920 5,584 6,210 5,982 5,982
Police Retirement 1%
Supplemental 2,275 1,885 1,737 1,572 1,572
Workers Compensation 1,000 2,000 2,000 2,000
Facilities Reserve 2,000 2,000 2,000 2,000
Strategic Plan Project 2,000 2,000 2,000 2,000
Restricted
Pension and OPEB 1,778 3,061 3,178 3,367 3,367
Non-spendable 965 604 459 631 631
Unassigned 17,429 16,517 16,328 17,686 17,686
Total Fund Balance $53,492 $57,776 $59,037 $60,363 $60,363 • Structurally balanced General Fund Budget without the use of reserves;
• Provides full funding for the IT Replacement Fund at 1.5% of General Fund revenues; and
• Includes a $1.0M in debt payment for the bond payment for the reconstruction of Fire Station #2.
GENERAL
FUND
ACHIEVE LONG-TERM FISCAL
SUSTAINABILITY
32 CITY COUNCIL’S
REQUESTS
34 CITY COUNCIL’S REQUESTS
• Potential use of reserves to balance the FY2025-26 Proposed Budget instead of deferring the Capital Asset Needs (CAN). • Review additional Capital Improvement Projects that could be deferred.
• Review current Tennis Center fees and the potential to increase fees to near, or at market rate.
• Review current open contracts that could be reduced.
• Review additional vacant positions that could potentially be eliminated.
35 CAPITAL ASSET NEEDS
• City shall allocate a minimum of 5% of General Fund revenue to capital • Limited use.
(a) Capital asset funds shall only be used for the construction, replacement, maintenance, improvement, or modification of city owned or operated capital assets as defined in section 2-208, including construction, design, engineering, project management, inspection, and contract administration. Capital asset funds may be applied toward debt obligations created to fund capital assets where the indebtedness originated after October 15, 2015. (b) The use or loan of capital asset funds for a purpose other than those referenced in this section shall require approval of a supermajority vote of the entire city council • Emergency exception
(a) In the following circumstances, the city need not comply with the requirements set forth in section 2-209, subject to supermajority approval of the entire city council:
• (1) General fund operating reserve falls below the general fund operating reserve as set forth in section 2-205; or
• (2) An economic downturn, natural disaster, emergency or other unforeseen circumstances. (b) The exception set forth herein shall require annual supermajority approval of the entire city council. (c) In the event this provision is applied, the city shall develop a plan to replenish the capital asset funds for the amount exempted
36 OPTIONAL CAPITAL IMPROVEMENT PROJECTS
FOR DEFERRAL
Capital Improvement (Fund 401)
High
Priority
Const./
Impl.
Restr.
Funds No. Proj # Project Name Budget Actuals
Remaining
Balance
1 210019 City Hall 5th Floor Air Handler Replacement 140,000 - 140,000 2 210021 City Hall Heater(s) Replacement 350,000 - 350,000 3 210026 Police Dept - Locker Rooms Remodel 400,000 - 400,000 4 210027 Police Dept - Weather Proofing 350,000 - 350,000 5 370010 Mesa Del Mar Multimodal Access 200,000 11,465 188,535 6 370042 Bus Shelter Improvement 300,000 - 300,000 7 800031 Westside Police Sub-Station Improvements 850,000 - 850,000 8 800035 Senior Center- HVAC Replacement 725,000 - 725,000 Total Ongoing Capital Improvement Projects 3,315,000 11,465 3,303,535
CAPITAL IMPROVEMENT PROGRAM
Ongoing Capital Improvement Projects
Remaining Balances as of 05/07/2025
37 CITY CONTRACTS
Descriptions Contract Amount
Citywide Parks & Landscape Services 2,695,129
Ambulance Transportation and Staff Services 2,454,000
Street Sweeping Services For Residential & Arterial Streets 747,200 Mobile Video System 740,008
Traffic Signal Maintenance Services 550,000
Citywide Tree Trimming Services 490,000
Animal Shelter Services 480,000
School Crossing Guard Services 326,596
Medical First Aid & EMS Supplies 285,000
Transportation Services for Senior Mobility 277,500
Citywide Janitorial Services 269,442
City Hall & Police Department HVAC maintenance and repair Service 249,168 Ambulance Transport: Billing and Collection Services 240,000 Legal Services for litigation 200,000
Security Guard Services for various City Locations 183,188 38 TENNIS CENTER FEES
• Operator pays the City 10% of gross revenue from all court-use revenue sources and Pro Shop sales
• Total Tennis Center is estimated to generate $1.0 million per year, 10%, or $100,000 is the City’s share
• All fees and charges can be set by the operator and are subject to final approval by the City Manager or designee
• Of the total revenues, court fees generate approximately $90,000 per year, 10%, or $9,000 is the City’s share
Fountain Valley Tennis Center Costa Mesa Tennis Center
Drop-In Drop-In
$12 per hour per court before 6 pm $8 per hour per court before 4 pm $15 per hour per court after 6 pm $12 per hour per court after 4 pm 12 per hour per court Sat/Sun
$9 per hour per court (seniors) before 6 pm
$12 per hour per court (seniors) after 6 pm
39 COSTA MESA TENNIS CENTER FEES
PROSHOP Charge Description
Tennis - Can of Balls $ 3.00
Tennis - Candy bar $ 1.00
Tennis - Drink $ 2.00
COURTS
1 hour Court Rental - M-F until 4pm $ 8.00 per court per hour 1 Tennis Court Rental - Night/Weekend M-F after 4pm, Sat/Sun $ 12.00 per court per hour Ball Machine 1/2hr $ 15.00
Ball Machine 1hr $ 25.00
Junior Tennis Team $ 225.00 per player
Day League rental $ 8.00 per court per hour Night/Weekend League rental $ 12.00 per court per hour Men's Night -King of the Court (open player format) $ 6.00 per player Ladies Double Drill (drills with coach) $ 30.00 per player Adult Live Ball (live ball with coach) $ 30.00 per player USTA Tournament Rates
Singles
$ 75.00 per player
Doubles $ 23.00 per player
Novice $45-60 per player
Group Classes - One Day a week for 5-week (eduardo/patrick/other at 60/40 split) Group City Class - Pee Wee $ 70.00
Group City Class - Youth Junior Beginner/Adv Beginner $ 100.00 Group City Class - Youth Intermediate/Advanced $ 100.00 Group City Class - Adult Beginner $ 100.00
Group City Class - Adult Intermediate/Advanced $ 100.00 Group City Class - Adult Advanced $ 100.00
Lessons by Ball Family - contract instructors (80/20 spilt) Ball Coaches - Lesson - 1/2 hour $ 50.00
Ball Coaches - Lesson - 1 hour $ 100.00
Syd Private Lesson - 1/2 hour $ 60.00
Lessons by Eduardo/Patrick - contract instructors (60/40 split) Private 1 Hour $ 70.00
Clinics (Semi-Private Lessons) by all coaches $ 25/30/40 FY 2024 - 2025
Major
Accomplishments
Tuesday, May 13, 2025
1 MISSION STATEMENT
“The City of Costa Mesa serves our residents,
businesses, and visitors while promoting a
safe, inclusive and vibrant community.”
2 CORE VALUES
⚬INTEGRITY
⚬SUSTAINABILITY
⚬COMPASSION
⚬INNOVATION
⚬INCLUSION
⚬COLLABORATION
STRATEGIC
PLANNING
GOALS
EXECUTIVE LEADERSHIP
Administration
Negotiating with NCAA Division 1 College Football Team
Planned, organized and hosted City signature events such as Earth Day, Love Costa Mesa, July 3rd, Concerts in the Park, Hispanic Heritage Month, Snoopy House
Completing final process for the Land Acquisition of 778 Shalimar Drive including tenant reallocation to City Owned Units
Coordinated with DGS, DDS, and Cal OES to monitor FDC site development, budget funding, and present financial feasibility analysis to DGS Met with Legislative Review Team to review federal and state activity, bills, and earmark requests
5 City Manager’s Office
Administration
continued
Tracked and reviewed state budget actions and reviewed federal appropriations process and submitted earmark requests
Track and review Executive Orders, and administrative actions impacting City and responded to council request on impacts to Seniors Developed City’s first Legislative Platform with input from City Department Directors to be presented to City Council
Provided City Departments legislative reports and assistance on reviewing impacts of legislation (Advance Clean Fleets, Sober Living Homes, Prop. 36 & Retail Theft) and on grant applications and securing funding (EECBG, OCTA EMSD, and Safe Streets)
6 City Manager’s Office
Constituent
Services
Managed 287 constituent inquiries
Facilitated 404 Council-Constituent requests
Supported 37 community outreach events including community resource fairs, legal aid workshops, fair housing and tenant protections workshops Recognized 20 local businesses at the Chamber of Commerce/Ribbon Cutting ceremonies
Created 263 Certificates of Recognition & Proclamations Responded to a total of 43 constituent inquiries regarding Tenancy/Housing (TPO)
7 City Manager’s Office
Community
Outreach &
Engagement
Assisted City Departments in developing, advertising, and hosting 24 community events/meetings
Assisted City Departments in the development and execution of 5 community surveys
Attended 20 meetings hosted by community partners
Created the “Let’s Go Costa Mesa” shuttle program outreach and communications campaign that has resulted in increased ridership and brand awareness
Created a “Let’s Do Business” awareness campaign for local businesses interested in service contracts with the City of Costa Mesa City Manager’s Office
8 Community
Outreach &
Engagement
Worked with Economic and Development Services to develop marketing materials and an outreach campaign in support of the Mobile Home Park Advisory Committee.
Developed marketing materials and outreach campaign for the launch of TESSA Insta- Permits.
Worked with IT to develop a constituent management program through Tyler 311 to improve responsiveness and tracking capabilities
Working with Public Works to develop a construction signage program to increase branding and community awareness in public corridors and parks
Working with City Departments to host pop-up information booths at city and community events
City Manager’s Office
9 Communications
& Marketing
CMTV won 7 awards across two different award shows
Improved public outreach efforts in both English and Spanish for important community issues such as rental assistance, waste management, residential parking, etc. through traditional door-to-door canvassing and social media Created new informational web pages for key topics such as the City’s new streamlined Insta-Permits, Community Outreach regarding Fairview Development Center Specific Plan, and the new Mural Permit process Instagram saw strong growth: views up 132%, reach increased 183%, follows rose 71%, and content interactions surged 108%
10 City Manager’s Office
Facebook performance improved significantly: views up 166%, reach up 97%, follows increased 70%, and content interactions jumped 164%.
Communications
& Marketing
Continued
LinkedIn engagement spiked: impressions up 102%, reactions rose 166% and reposts experienced a dramatic 500% increase
Improved public outreach efforts through both English and Spanish marketing materials for major initiatives
Preparation and development of communication materials, such as City Hall Snapshot, Costa Mesa Minute, and Spanish El Minuto, etc.
Improved public outreach efforts through both English and Spanish marketing materials for major initiatives
Preparation and development of communication materials, such as City Hall Snapshot, Costa Mesa Minute, and Spanish El Minuto, etc. 11 City Manager’s Office
Launched the Street Medicine Program in partnership with CalOptima Added 15 behavioral health beds through a grant with the OC Health Care Agency for $3.4M Completed construction and leased 40 permanent supportive housing units at the Mesa Vista Apartments (formerly Motel 6)
The Homelessness & Housing Division hired four new Outreach Workers to provide case management of clients at the Costa Mesa Bridge Shelter
Mesa Vista Apartments received $23M in Low Income Housing Tax Credits to complete Phase 2 of the project, which will produce 46 units of affordable housing for very low-income Costa Mesa seniors Hired four new Outreach Workers to provide case management of clients at the Costa Mesa Bridge Shelter Received $750k from Assemblywoman Cottie Petrie-Norris to expand behavioral health care at the Bridge Shelter for 15 additional guests
Developed and successfully activated an Inclement Weather Shelter in partnership with the Lighthouse Church, which served over 100 people during two severe weather events Successfully housed 442 individuals since April 2019
Received over 2,000 calls to the NHS Hotline from individuals seeking assistance Network For Homeless Solutions
12 Conducted ongoing recruitment processes, in partnership with the Police and Fire & Rescue Departments, implemented a Hiring and Referral Incentive program and negotiated a side letter with the Costa Mesa City Employees Association to retain and proactively attract and hire Public Safety Dispatchers
Conducted an ongoing recruitment process, ,in partnership with the Police and Fire & Rescue Departments, and implemented a Hiring and Referral Incentive program to proactively attract and hire Police Recruits, Police Academy Graduates, and Police Officers Completed recruitment for key management positions including the Economic & Development Services Director and Transportation Manager
Continued the Wellness Program offering wellness seminars and activities for all City employees to promote health and safety, including expanding the Employee Assistance Program (EAP) Developed the Costa Mesa University Leadership, Training, and Mentoring Program for all City employees
Successfully negotiated with CMFA, CMFMA, and CMDMA bargaining groups Human Resources
13 Successfully onducted the 2024 General Election
Concierge Services served 41,571 citizens via telephone and walk-in inquiries and ensured Spanish bilingual staff was available to assist the public
Processed 1,076 public records requests in compliance with the Public Records Act Processed 54 Subpoena for Records/Appearance and 15 Summons Successfully conducted 24 City Council Meetings: 19 Regular City Council Meetings and 5 City Council Study Session meetings via hybrid format (in person and via Zoom) Provided English/Spanish translation and interpretation services at all 24 City Council meetings and provided Spanish translation of all the agendas and agenda reports Promoted transparency in local government by facilitating the scanning/importing of 5,000 documents into the Laserfiche Electronic Document Imaging System and providing the public access to these documents
Successfully completed three Commission and Committee recruitments City Clerk’s Office
14 350 total housing units approved, including 118 Accessory Dwelling Units (ADUs)
Completed approval for the Jamboree Housing affordable senior residential development with 70 units, next to the City’s Senior Center Currently processing housing applications totaling over 1,300 units Housing Grants team administered $1.4 million in CBDG/HOME funds, assisting with 10 rehabilitation loans and rental assistance for 92 individuals including children
15 Economic & Development Services
Housin
g
Rollout of 10 distinct InstaPermits to streamline and provide better customer service for residents
City’s Online permitting system, TESSA, given the “Turning Red Tape into Red Carpet” award by the Orange County Business Council
16 Economic & Development Services
TESS
A
Completed the Request For Proposal and launched the Rezoning Program in March 2025 (Last major step for Housing Element to be eligible for certification)
Launched the Climate Action and Adaptation Plan effort in December 2024. Successful Community engagement launch at City’s Earth Day Event
17 Economic & Development Services
Long Range
Planning
Code Enforcement addressed 1,800 complaints and inquiries, and managed 800 code enforcement cases
Building and Safety Division issued 2,800 building permits and inspectors performed 24,000 next business day building
inspections
18 Economic & Development Services
Building
& Code
Fire & Rescue
19 Completed a recruitment and hiring process for Firefighter & Firefighter/Paramedic, Promotional Testing, & expanded Cadet/Intern Programs
Responded to 13,749 emergency incidents, inclusive of 15 Cal OES deployments Transported 7,790 patients
Recovered $7.5M in ambulance transportation cost recovery revenue Conducted 2,929 fire & life safety inspections
Reviewed 984 plan check reviews
Made strong progress on CMFR’s five-year Strategic Plan (2022-2027) Began Fire Station No. 2 reconstruction efforts
Provided support for Fire Station No. 4 Regional Training Facility and Tower construction Placed a new fire engine, a new tiller truck, and six ambulances into service Implemented new technologies and innovations including a new Drone Program and Tablet Responded to 98,360 police calls for assistance in Costa Mesa Made 5,143 criminal arrests protecting victims and property owners Issued 9,698 traffic citations in our efforts to reduce traffic collisions and save lives Overall crime reduction in Part I Crime in 2024 (-11.67%) including -40% Robbery, -12% Burglary, -20% Theft, -6% Motor Vehicle Theft
Utilized State grant funding to prevent and investigate Organized Retail Theft (ORT), resulting in a 30% decrease in ORT incidents.
Acquired a new State of the Art Body Worn Camera (BWC) and in Vehicle Cameras (IVC) provider to improve on evidence collection, integration with other agencies and personnel oversight.
Expanded our Automated License Plate Reader coverage to 46 cameras, with an additional 18 community sponsored, totaling 64 ALPR cameras. The technology assisted in making over 70
Police Department
20 Acquired innovative technology and tools to increase apprehension rates and reduce crime, including data analytic software, vehicle forensic software, mobile phone forensic software, and other technologies Successful processed of 55 sworn/recruits and 21 professional staff resulting in 44 employees hired. 12 promotions - 5 Sergeants, 3 community services specialists, 1 custody officer, 1 park ranger, 2 senior police records technicians
Expanded wellness services, providing programs to address the physical and mental demands placed on law enforcement professionals
Community Policing Unit cleared 110 encampments, housed 25 people, connected 20 individuals with detox treatment and reconnected several people with family support out of state. In addition, they made 255 arrests and issued 38 citations CMPD’s social media grew by 9,031 followers and with Nextdoor, the police department has a total of 112,941 social media platform followers
CMPD hosted 63 community outreach and events, including Coffee with a Cop, National Police Department Cont.
21 Upgraded Windows Server Operating Systems
Upgraded Microsoft Office Suite and Implemented Teams
Created a separate intranet site for the Police Department Implemented a new Fire incident response GIS web map application for the Fire Department
Audited Campus Fiber to mitigate network downtime at City Hall Updated Enterprise Storage Array for better performance, capacity, resiliency, and speed
Replaced battery backup power for Dispatch to increase runtime and reliability
Created and implemented SQL Server Reporting Services for Finance Department
Information Technology
22 Senior Center
• Meals on Wheels: 38,911 served to seniors
• Senior Mobility Program increased ridership by 30% from 17,000 to 22,000 rides
Partnership
• NMUSD, SOY and Other Local Organizations in providing a Spring Camp Conducting 1,300 swim lessons to local youth
New Adaptive Programming
• Over 400 participants within 4 seasonal dance and special events • Implementation of resource fairs that have hosted over 30 vendors Fairview Park
• Fairview Park Master Plan Draft Completion
• Mesa Restoration Project
• Initiated Bluff restoration project
Parks and Community Services
Programs
& Services
23 NMUSD
• Provided security services to Whittier, Wilson, and Rea Elementary for joint-use field access
Tennis Center
• Implemented a new tennis court management system
Arts and Culture
• Installation of the Poet Laureate, Danielle Hanson
• Expanded ARTventure to a multi-day event
• Awarded $20,000 in grants to local artist and art organizations • Adopted guidelines for Public Art donations
• Implemented best practices and a free permitting process through TESSA for murals on private property
Parks and Community Services
Programs
& Services
Continued
24 Launched Let’s Go Costa Mesa On-Demand Micro Transit Service Completed Citywide Bicycle Wayfinding Signage Project
Organized Bike/Walk to School Days and Continued Bicycle Safety Education Program
Completed Mobility Improvements at Adams Avenue and Pinecreek Drive Intersection
Completed Design of Fairview Road Active Transportation Improvements (Fair Drive to Newport Boulevard)
Lowered Posted Speed Limits on Over 70 Roadway Segments Transportation
Public Works
25 Completed Construction of Adams Avenue Street Rehabilitation Project Completed Police Department Range Remodel
Completed Design of Shalimar Park and Ketchum-Libolt Park Improvements Conducted Outreach and Preliminary Design of Costa Mesa Skate Park Expansion
Completed Design and Construction of Several Pavement Rehabilitation Projects to Maintain High Pavement Condition Index (PCI)
Substantially Completed Design of New Fire Station #2
City Hall Training Room and Information Technology Offices Engineering
Public Works
26 Installation of LED Sports Field Lighting at Various City Athletic Facilities Completed Installation of Pickleball Courts and Resurfacing of Tennis Courts at Costa Mesa Tennis Center
Addressed 1,500 Tree Related Service Calls
Responded to 6,540 Graffiti Abatement Requests Within 24 Hours Removed 7,500 Bulky Items from City’s Right-Of-Way
Maintenance
Public Works
27 Secured Local Assistance Grant Funds and Continued Education on Organics Recycling
Processed 680 Construction and Demolition Permits and 174 Contractor Self-Haul Permit Applications
Developed Plan to Modernize City’s Fleet
Substantial Completion of Fire Station #4 Training Tower Construction Completion of Café Mesa at Lions Park
Initiated Facilities Needs Assessment Study
General
Services
Public Works
28 Maintained the City's AA+ Lease and Revenue Bond credit rating Implemented the new Citywide Master Fee and Charges Schedule with the annual budget process
Exceeded City Council reserves policy by $5M by Fiscal Year 2024-25 $6M in year end savings helped go towards Lions park Café, Fire Training Tower, Housing Element and Visioning plan, Golf Course and Tennis Center, and bus shelters improvements
Strategically utilized remaining ARPA to offset the fiscal impact of the pandemic, including Housing Trust Fund, rental assistance, Project Homekey, and tenant eviction protection Allocated $2.4M for Housing Element and Visioning Plan from Year End Savings Received national and state awards for budget and finance excellence ⚬ GFOA Certificate of Recognition
⚬ GFOA Distinguished Budget Award
⚬ CSMFO Operating Budget Excellence Award
Completed financing of two fire apparatus
Initiated payments for two fire apparatus and four ambulances and police armored rescue
Finance
29 70
• Strategically utilized remaining ARPA to offset the fiscal impact of the pandemic, including Housing Trust Fund, rental
assistance, Project Homekey, and tenant eviction protection; • Eliminate the structural deficits contained in multiple funds (Self- Insurance Fund and Equipment Replacement Fund);
• Achieved and exceeded the City Council Reserve Fund Balance Policy of $55M by $5.0M; and
• Maintained City’s underlying AAA rating and AA rating on its 2017 Lease Revenue Bonds.
FINANCIAL ACHIEVEMENTS
71 FY 2025-26 Budget Calendar
FY 2025-26 Proposed CIP Budget Review Finance and Pension Advisory Committee April 9, 2025
FY 2025-26 Proposed CIP Budget Review Parks, Arts and Community Services Commission April 10, 2025
FY 2025-26 Proposed CIP Budget Study Session City Council April 22, 2025 FY 2025-26 Proposed CIP Budget Review Planning Commission May 12, 2025 FY 2025-26 Proposed Budget Study Session City Council May 13, 2025 FY 2025-26 Proposed Operating Budget Finance and Pension Advisory Committee May 14, 2025
FY 2025-26 Proposed Operating and CIP
Budget Public Hearing City Council June 3, 2025
FY 2025-26 Proposed Operating & CIP Budget
Special Meeting/ Study Session #2 (if necessary) City Council June 10, 2025 FY 2025-26 Proposed Budget Adoption (if necessary) City Council June 17, 2025 ````
“Focused. Efficient. Resilient.”
76 Along With Market Indices and Consumer Sentiment