Agenda packet — Costa Mesa City Council, May 12, 2026 (part 1 of 2)

CITY OF COSTA MESA
REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
Agenda
City Council Chambers
77 Fair Drive
5:00 PMTuesday, May 12, 2026

STUDY SESSION
The City Council meetings are presented in a hybrid format, both in-person at City Hall and as a courtesy virtually via Zoom Webinar. If the Zoom feature is having technical difficulties or experiencing any other critical issues, and unless required by the Brown Act, the meeting will continue in person.

TRANSLATION SERVICES AVAILABLE / SERVICIOS DE TRADUCCIÓN DISPONIBLE Please contact the City Clerk at (714) 754-5225 to request language interpreting services for City meetings. Notification at least 48 hours prior to the meeting will enable the City to make arrangements.

Closed Captioning is available via the Zoom option in English and Spanish.

Los subtítulos están disponibles a través de la opción Zoom en inglés y español.

Favor de comunicarse con la Secretaria Municipal al (714) 754-5225 para solicitar servicios de interpretación de idioma para las juntas de la Ciudad. Se pide notificación por lo mínimo 48 horas de anticipación, esto permite que la Ciudad haga los arreglos necesarios.

Members of the public can view the City Council meetings live on COSTA MESA TV (SPECTRUM CHANNEL 3 AND AT&T U-VERSE CHANNEL 99) or
http://costamesa.granicus.com/player/camera/2?publish_id=10&redirect=true and online at youtube.com/costamesatv.

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Agenda May 12, 2026
Members of the public are welcome to speak during the meeting when the Mayor opens the floor for public comment. There is no need to register in advance or complete a comment card. When it's time to comment, line up at one of the two podiums in the room and wait for your turn. Each speaker will have up to 3 minutes (or as directed) to address the City Council.

To maintain a respectful and orderly atmosphere during the meeting, attendees shall refrain from using horns or amplified speakers. Signs and props may be brought into the Chamber, provided they do not exceed 11 inches by 18 inches in size and do not hinder the visibility of other attendees. The possession of poles, sticks, or stakes is strictly prohibited.

All attendees must remain seated while in the chamber until instructed by the Presiding Officer to approach and line up for public comment. To ensure safety and maintain order during the proceedings, standing or congregating in the aisles or foyer is strictly prohibited.

Further information regarding the City's regulations on addressing the City Council and expected conduct during meetings are available at the following links.

Title 2: Administration
§ 2-61: Conduct while addressing the council.
https://ecode360.com/42609578
Title 2: Administration
§ 2-64: Disorderliness by members of the audience.
https://ecode360.com/42609598
As a courtesy, the public may participate via the Zoom option.

Zoom Webinar:

Please click the link below to join the webinar:
https://us06web.zoom.us/j/86934766842?pwd=eR7C7jw0RJbwLOy1HWQIttQ9DQ62Bd.1 Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 869 3476 6842/ Password: 655427
• If Zoom is not already installed on your computer, click “Download & Run Zoom” on the launch page and press “Run” when prompted by your browser. If Zoom has previously been installed on your computer, please allow a few moments for the application to launch automatically.
• Select “Join Audio via Computer.”
• The virtual conference room will open. If you receive a message reading, “Please wait for the host to start this meeting,” simply remain in the room until the meeting begins.
• During the Public Comment Period, use the “raise hand” feature located in the participants’ window and wait for city staff to announce your name and unmute your line when it is your turn to speak. Comments are limited to 2 minutes, or as otherwise directed.

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Participate via telephone:

Call: 1 669 900 6833 Enter Webinar ID: 869 3476 6842/ Password: 655427 During the Public Comment Period, press *9 to "raise your hand" and to be added to the queue to speak and wait for city staff to announce your name/phone number and press *6 to unmute your line when it is your turn to speak. Comments are limited to 2 minutes, or as otherwise directed.

Note, if you have installed a zoom update, please restart your computer before participating in the meeting.

Additionally, members of the public who wish to make a written comment on a specific agenda item, may submit a written comment via email to the City Clerk at [email protected].

Any written communications, photos, or other materials for copying and distribution to the City Council that are 10 pages or less, can be e-mailed to [email protected], submitted to the City Clerk’s Office on a flash drive, or mailed to the City Clerk’s Office. Kindly submit materials to the City Clerk AS EARLY AS POSSIBLE, BUT NO LATER THAN 12:00 p.m. on the day of the meeting.

Comments received by 12:00 p.m. on the day of the meeting will be provided to the City Council, made available to the public, and will be part of the meeting record.

Please know that it is important for the City to allow public participation at this meeting. If you are unable to participate in the meeting via the processes set forth above, please contact the City Clerk at (714) 754-5225 or [email protected] and staff will attempt to accommodate you. While the City does not expect there to be any changes to the above process for participating in this meeting, if there is a change, the City will post the information as soon as possible to the City’s website.

Note that records submitted by the public will not be redacted in any way and will be posted online as submitted, including any personal contact information. All pictures, PowerPoints, and videos submitted for display at a public meeting must be previously reviewed by staff to verify appropriateness for general audiences. This includes items submitted for the overhead screen during the meeting. Items submitted for the overhead screen should be 1 page and provided to the City Clerk prior to the start of the meeting. No links to YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to staff prior to each meeting in order to minimize complications and to play the video without delay. The video must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for public comments, for both videos and pictures. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting. If you do not receive confirmation from the city prior to the meeting, please call the City Clerks office at 714-754-5225.

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Agenda May 12, 2026
Note regarding agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5): Any related documents provided to a majority of the City Council after distribution of the City Council Agenda Packets will be made available for public inspection. Such documents will be posted on the city’s website and will be available at the City Clerk's office, 77 Fair Drive, Costa Mesa, CA 92626.

All cell phones and other electronic devices are to be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to conduct a phone conversation.

Free Wi-Fi is available in the Council Chambers during the meetings. The network username available is: CM_Council. The password is: cmcouncil1953.

As a LEED Gold Certified City, Costa Mesa is fully committed to environmental sustainability.

A minimum number of hard copies of the agenda will be available in the Council Chambers.

For your convenience, a binder of the entire agenda packet will be at the table in the foyer of the Council Chambers for viewing. Agendas and reports can be viewed on the City website at https://costamesa.legistar.com/Calendar.aspx. Las agendas y los informes se pueden ver en español en el sitio web de la Ciudad en
https://www.costamesaca.gov/trending/current-agendas/spanish-city-council-agendas.

In compliance with the Americans with Disabilities Act, Assistive Listening headphones are available and can be checked out from the City Clerk. If you need special assistance to participate in this meeting, please contact the City Clerk at (714) 754-5225. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].

En conformidad con la Ley de Estadounidenses con Discapacidades (ADA), aparatos de asistencia están disponibles y podrán ser prestados notificando a la Secretaria Municipal. Si necesita asistencia especial para participar en esta junta, comuníquese con la oficina de la Secretaria Municipal al (714) 754-5225. Se pide dar notificación a la Ciudad por lo mínimo 48 horas de anticipación para garantizar accesibilidad razonable a la junta. [28 CFR

35.102.35.104 ADA Title II].

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Agenda May 12, 2026

REGULAR STUDY SESSION MEETING OF THE CITY COUNCIL
MAY 12, 2026 – 5:00 P.M.

JOHN STEPHENS
Mayor

MANUEL CHAVEZ ANDREA MARR Mayor Pro Tem - District 4 Council Member - District 3

ARLIS REYNOLDS LOREN GAMEROS Council Member - District 5 Council Member - District 2

JEFF PETTIS MIKE BULEY Council Member - District 6 Council Member - District 1

KIMBERLY HALL BARLOW CECILIA GALLARDO-DALY City Attorney City Manager

CALL TO ORDER

ROLL CALL
STUDY SESSION ITEM: (NEXT PAGE)

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Agenda May 12, 2026

1. FISCAL YEAR 2026-27 PROPOSED BUDGET STUDY SESSION 26-279 RECOMMENDATION:

Conduct a Study Session on the Fiscal Year 2026-27 Proposed All Funds Budget of $244.9 million, with a General Fund component of $200.0 million, and provide feedback and direction to staff in advance of final adoption of the budget by June 30, 2026. City staff is presenting a FY 2026-27 Proposed Budget that is structurally balanced, ensuring ongoing revenues fully support expenditures while maintaining the City’s commitment to long-term fiscal sustainability while continuing to provide the highest level of service.

1. Four Year Personnel Summary by Department

2. All Funds Revenues and Sources of Funds

3. General Fund Revenues and Sources of Funds

4. Summary of Appropriations by Account - All Funds

5. Summary of Appropriations by Account - General Fund

6. Summary of Appropriations by Department - by Category - All Funds

7. Summary of Appropriations by Department - by Category - General Fund

8. Proposed Budget Book FY 26-27
Attachments:

ADJOURNMENT

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6 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-279 Meeting Date: 5/12/2026
TITLE:

FISCAL YEAR 2026-27 PROPOSED BUDGET STUDY SESSION
DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: CECILIA GALLARDO DALY, CITY MANAGER,

MARK KHOU, BUDGET & PURCHASING MANAGER
CONTACT INFORMATION: MARK KHOU, BUDGET & PURCHASING MANAGER, (714) 754-5241
RECOMMENDATION:

Conduct a Study Session on the Fiscal Year 2026-27 Proposed All Funds Budget of $244.9 million, with a General Fund component of $200.0 million, and provide feedback and direction to staff in advance of final adoption of the budget by June 30, 2026. City staff is presenting a FY 2026-27 Proposed Budget that is structurally balanced, ensuring ongoing revenues fully support expenditures while maintaining the City’scommitment to long-term fiscal sustainability while continuing to provide the highest level of service.

BACKGROUND:

The Fiscal Year 2026-27 Proposed Budget includes collaboration efforts throughout all sectors, including public safety, parks, facilities, streets, and housing for the City of Costa Mesa residents, businesses, and visitors. Recommended budget adjustments contained in the Proposed Budget were carefully selected based on operational needs, the provision of essential core services to the community, and the implementation of the City Council’sstated Goals and Priorities. The Fiscal Year 2026-27 Proposed Budget is balanced without the use of General Fund reserves. The City continues its commitment to strengthening the public’ssafety and improving the quality of life by dedicating 55% of the General Fund’sbudget to Public Safety. Furthermore, this Proposed Budget includes the full allocation and repayment of deferrals to both the Capital Asset Needs (CAN) and Information Technology Replacement Funds (ITRF) to support facility and infrastructure needs throughout the city.

While the City is presenting a structurally balanced FY 2026-27 Proposed Budget, it is important to recognize the broader uncertainty created by ongoing geopolitical tensions. Global supply chain disruptions, fluctuating energy markets, and volatility in international trade continue to pose risks that can ripple into the local economy. These external factors may influence revenue streams such as sales tax, tourism-related activities, and construction costs, all of which play a critical role in municipal operations.

The City is expecting modest increases in Sales Tax and Property Tax revenues. Transient Occupancy Tax is expected to grow but may soften if elevated fuel prices persist for a prolonged period, which may affect travel patterns and consumer spending on travel activities. Development of

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period, which may affect travel patterns and consumer spending on travel activities. Development of the Fiscal Year 2026-27 Proposed Budget reflects a balancing of revenue projections with the expected increase in the cost of goods and services. Despite modest revenue growth and rising operational costs, the carefully crafted budget ensures that the City continues to deliver high-quality services and programs to our residents and business community. Staff will continue to closely monitor economic indicators and remain prepared to adjust revenue projections and expenditures as conditions evolve to maintain fiscal sustainability.

Guiding Principles
The guiding principles that inspired the recommendations for the FY 2026-27 Proposed Budget are based on the City Council’s mission, goals, and priorities, which are as follows:
“The City of Costa Mesa serves our residents, businesses, and visitors while promoting a safe, inclusive, and vibrant community.”
City Council Strategic Plan Goals:
· Strengthen the Public’s Safety and Improve the Quality of Life · Achieve Long-Term Fiscal Sustainability
· Recruit and Retain High Quality Staff
· Diversify, Stabilize, and Increase Housing to Reflect Community Needs · Advance Environmental Sustainability and Climate Resiliency · Maintain and Enhance the City’s Facilities, Technology, and Equipment The recommendations contained in the FY 2026-27 Proposed Budget are rooted in the City Council’s Strategic Plan Goals focused on fostering a safe, inclusive, and vibrant community.

ANALYSIS:

The theme for the FY 2026-27 Proposed Budget is “Measured Decisions. Meaningful Impact.” Staff will remain focused on the City’smission to serve its community; be efficient in all services delivered, while being resilient to the changing economic conditions. This budget fully funds the Homeless and Behavioral Health Program, Capital Asset Needs, Information Technology Replacement Fund, Self- Insurance Fund, and Equipment Replacement Fund, enabling Departments to achieve shared goals in addressing our most pressing needs and concerns.

Funding requests contained in the FY 2026-27 Proposed Budget help to further stabilize or enhance critical City operations to better serve the public, and/or provide City employees with the essential technology, equipment, and overall tools to perform their public service effectively. The Proposed Budget helps ensure both short-and-long-term fiscal sustainability, while committing resources to achieve the Council’sgoals. As the cost of operating the City continues to rise, it was appropriate to anticipate that overall expenditures would begin to outpace revenues. Hence, the need to continue to explore new revenue opportunities. Forecasts indicated that the City’s total expenditures were expected to exceed projected revenues.

To address and develop a balanced Budget for the Fiscal Year 2026-27, departments reviewed

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To address and develop a balanced Budget for the Fiscal Year 2026-27, departments reviewed operational expenses and identified opportunities to defer or reduce expenditures without impacting core services. Following a comprehensive evaluation of departmental expenses, staff identified one- time savings that can be implemented without affecting the City’sprimary services. At the same time, staff continue to evaluate long-term revenue strategies to ensure the City can sustainably meet its future operational needs. This includes assessing potential revenue enhancements, monitoring economic trends, and identifying opportunities to strengthen the City’sfiscal position. Together, these efforts support the City’scommitment to maintaining service levels, advancing Council priorities, and ensuring long-term financial resilience.

Overview of FY 2026-27 Proposed All Funds Budget
The Fiscal Year 2026-27 Proposed Budget is balanced and reflects the operating and capital spending plans for the General Fund, Special Revenue Funds, Capital Project Funds, and Internal Service Funds. The total proposed budget for all funds is $244.9 million, an increase of $19.9 million, or 9 percent, compared to the Fiscal Year 2025-26 Adopted Budget of $224.9 million. Table 1 illustrates these amounts.

Table 1 - Proposed Budget - All Funds
The All-Funds Budget for the City includes both governmental and proprietary funds. Governmental funds include the General Fund, Special Revenue Funds, Internal Services Funds and Capital Improvement Funds. Special Revenue Funds consist of grants and other restricted revenues designated for specific programs or services, typically provided through Federal, State, or County agencies. Some of these funds receive ongoing revenue streams, while others are awarded as one- time competitive grants that require careful monitoring, compliance, and record-keeping. Proprietary Funds include the City’sinternal service operations, such as equipment replacement, self-insurance programs, and information technology replacement. These funds ensure that critical internal services are properly maintained and financially supported over time. Finally, Capital Improvement Funds support major capital projects that generally span multiple fiscal years.

In some cases, individual funds may carry accumulated fund balances that can be used as needs arise or to complete specific projects within required timeframes. As a result, the City’sAll-Funds Budget is composed of numerous distinct funds, each with its own accounting and reporting requirements established by government regulations and, in some instances, by statute.

The General Fund is the City’sprimary operating unrestricted fund and supports a broad range of public services. It is funded through multiple revenue sources, including property, sales, hotel and cannabis taxes, as well as user fees, fines, facility rentals, and development-related charges, among others.

For Fiscal Year 2026-27, the Proposed All-Funds Budget totals $244.9 million, an increase of 9Page 3 of 12 9 File #: 26-279 Meeting Date: 5/12/2026
For Fiscal Year 2026-27, the Proposed All-Funds Budget totals $244.9 million, an increase of 9 percent from the previous adopted year and consists of an increase in all expenditure categories:
operating, transfers out and capital budget.

Operating Budget
The FY 2026-27 total proposed operating budget for All Funds is $211.5 million, an increase of $9.0 million, or 4 percent, compared to the FY 2025-26 Adopted Budget of $202.4 million. This includes realigning budgets to include year-over-year actuals in some areas. The FY 2026-27 All Funds Proposed Operating Budget is balanced and comprised of several items including:

General Fund
· $250,000 increase in the City Manager Department’s City Clerk Division for bi-annual elections.
· A salary and benefit budget decrease of $158,442 in the Police Department for a full-time Park Ranger, and an overtime increase of $122,000 for the City’s jail operations. · $62,000 increase in the Police department Operating Budget to support the City’sAnimal Care services and security services for City Council meetings. · Realignment resulting in an increase of $79,321 for Part-Time positions in the Parks and Community Services Department.
· Adjustment resulting in an increase of $70,968 due to CPI for the Parks and Community Services Department to support the lease agreement with Newport Mesa Unified and other operational needs.
· Reallocation of the Emergency Service Coordinator position to a sworn Battalion Chief with a net $176,603 increase to the Fire Department Proposed Budget. · A $33,711 increase due to CPI for the City Attorney’s annual contractual agreement. · $2.0 million increase to the annual CalPERS Unfunded Actuarial Liability (UAL) payment. · Incorporates a citywide vacancy factor in the salary and benefits budget, calculated at 2% of the operating budget.

Other Funds
· $220,000 increase in Measure M2 Fairshare (Fund 416) to utilize annual allocations towards City’s traffic signal maintenance.
· The Gas Tax (Fund 201) has a $350,000 budget increase to support tree trimming and maintenance along medians and public-right-of-way.
· $508,693 increase in the Self Insurance Fund (602) for insurance premiums. · $66,000 one-time increase in Drainage Fund (Fund 209) to support legal advertising/filing fees.

Additionally, departments identified numerous temporary operational reductions totalingPage 4 of 12 10 File #: 26-279 Meeting Date: 5/12/2026
Additionally, departments identified numerous temporary operational reductions totaling approximately $1.7 million in savings to the Proposed FY 2026-27 General Fund Budget.

Transfers Out
Transfers Out from All funds totaled $9.8 million, an increase of $6.3 million. Ordinance No. 2020-06 requires the City to contribute 5% of annual General Fund revenues to the Capital Improvement Fund (Fund 401) and 1.5% to the Information Technology Replacement Fund (Fund 603). In the Proposed FY 2026-27 Budget, Transfers Out from the General Fund total $9.8 million, with $6.7 million allocated to Fund 401 and $3.1 million allocated to Fund 603. This amount includes the repayment of previously deferred contributions to the Capital Asset Needs (CAN) program and the Information Technology Replacement Fund (ITRF), totaling $717,047.

Information Technology Replacement Fund
This fund accounts for the accumulation of resources necessary to fund Information Technology Projects, including hardware and software replacements. As per the City’sMunicipal Code Section 2- 209.4, 1.5% of General Fund revenues are allocated to the Information Technology Replacement Fund (ITRF) to provide funding for the City’simmediate and future information technology needs, including those identified in the Information Technology Strategic Plan (ITSP). In FY 2026-27 Proposed Budget, $3.1 million will be funded from the General Fund for the Citywide Computer Replacement Program, depreciation and staffing salaries and benefits related to the ITSP.

Self-Insurance Internal Service Fund
This fund accounts for the general liability premiums, and the City is proposing an increase of $0.5M due to increasing insurance premiums.

Capital Budget
The proposed all-funds Capital Improvement Program (CIP) budget of $22.0 million is an increase of $3.0 million, or 8 percent, from the adopted FY 2025-26 budget. Of the City’s$22.0 million Proposed Capital Improvement Budget, $15.9 million will be funded through various City funds and grants. A comprehensive detail of the Proposed CIP Budget was presented to the City Council at the March 31, 2026, Study Session and is contained in further detail in the CIP section of the FY 2026-27 Proposed Budget Book.

A few key capital projects include:
· Costa Mesa Skate Park Expansion
· Harper Park Playground Replacement
· Moon Park Playground Replacement
· Newport Boulevard Improvement (RMRA funds)
· Police Department Real Time Crime Center
· Police Department Chillers Replacement
· Adams Avenue Active Transportation Improvements - Multipurpose Trails

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· 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
FY 2025-26 Proposed General Fund Budget Overview
The Proposed FY 2026-27 General Fund budget is balanced and totals $200.0 million. This reflects an increase of $13.1 million, or 7 percent, from the FY 2025-26 Adopted Budget of $186.9 million.

Table 2 is a summary of the Proposed FY 2025-26 General Fund Operating Budget.

General Fund Revenue Highlights
The FY 2026-27 Proposed Budget for General Fund Revenues for all funds totals $200.0 million, an increase of $13.1 million, or 7 percent, from the FY 2025-26 Adopted Budget. Revenues are expected to have modest growth compared to the FY 2025-26 projected year-end of $193.9 million.

These funds are typically used to cover public safety, roads, parks and community services, development services, and other activities and programs for residents. In FY 2025-26. There were many uncertainties leading into the budget development process, including federal enforcement activity, changing tariff policies, and persistent inflation. These factors remain concerns; however, the City has seen modest revenue growth in certain categories. The fiscal year budget commencing July 1, 2026, will be balanced with projected revenues to offset expenses and without the use of reserves.

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Table 3 - General Fund Revenue Estimates
Graph 1 - General Fund Revenue Estimates by Category
Sales and Use Tax: Sales tax is the largest revenue category in Costa Mesa and is estimated at $82.5 million for FY 2026-27, an increase of $7.5 million, or a 10 percent increase from the FY 2025- 26 Adopted Budget. The City continues to see growth in this category, despite the economic conditions that would typically dampen consumer spending.

Property Tax: All combined Property Tax revenues are estimated at $64.0 million, reflecting a 2 percent growth over the prior fiscal year budget.

Transient Occupancy Tax (TOT): Transient Occupancy tax revenues are estimated at $10.6 million next year, reflecting a 7 percent increase to FY 2026-27 Adopted Budget. The previously adopted revenue budget accounted for a potential slowdown in the travel and leisure segment of consumer

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spending.

Fees and Charges: Fees and Charges are estimated at $13.9 million, an increase of $808,349, reflecting a 6 percent growth in FY 2026-27. In FY 2025-26, the City implemented credit card processing fee of 2.7 percent, which was previously paid by the City.

Measure Q Retail Cannabis Business Tax: On November 3, 2020, voters approved the “Cityof Costa Mesa Retail Cannabis Tax and Regulation” Measure, also known as Measure Q, which allows cannabis retail storefront and delivery uses. City Council voted to adopt a 7 percent tax on cannabis retail businesses. The FY 206-27 Proposed Budget includes an estimated $3.7 million in cannabis taxes, an increase of $49,086, or 1 percent from FY 2025-26. Also, as previously approved by the City Council, the Proposed Budget has two restricted special revenue funds that are financed by the cannabis retail tax: The Arts and Culture Master Plan Fund (130) and the First Time Homebuyers Fund (140).

Business License Tax: Business License Tax was implemented over 40 years ago and the fees have not increased since its inception. The Business License Tax revenues are estimated at $980,741 for FY 2026-27, a 4 percent increase from FY 2025-26.

FY 2026-27 General Fund Budget Expenditure Highlights
The Proposed General Fund Budget for FY 2026-27 reflects total expenditure of $200 million. Of this amount, $146.1 million is for salaries and benefits, which represents an increase of $8.8 million, or 6 percent, from the FY 2025-26 adopted operating budget of $137.4 million. The General Fund maintenance and operations and fixed assets budget will decrease to $44.0 million from $46.7 million. The decrease is due to the operating reduction requests from all departments to align expenditures with projected revenues. The remaining $9.8 million represents the Transfers Out to the Information Technology Replacement Fund and Capital Asset Needs Fund as described earlier. The FY 2026-27 Proposed Budget for expenditures includes the following significant items:
· A $3.1 million allocation to ensure compliance with the Information Technology Replacement Fund municipal code requirement of 1.5% of the General Fund revenue. · A $6.7 million allocation to ensure compliance with the Capital Asset Needs municipal code requirement of 5% of the General Fund revenue.
· A $2.0 million increase in the annual required CalPERS UAL contribution. · Adoption of a 2% vacancy factor.
· No use of General Fund Reserves to balance the General Fund.

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Graph 2 - General Fund Total Appropriations by Department Table 3 - General Fund Budget by Department
Commitment to the Arts and Culture
At the May 5, 2026, City Council meeting, the Arts Commission provided an update to City Council on the implementation of the five-year Cultural Arts Master Plan, and accomplishments to date, as well as next steps for developing the future five-year plan. As part of this discussion, the City Council provided direction to allocate funding for the City’sarts and culture programs. The Fiscal Year 2026- 27 Proposed Budget reflects the direction from the council.

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Staffing Levels
As part of the City’seffort to ensure expenditure stays within the projected revenues, staffing levels were reviewed, and 13 vacant positions were identified and proposed to be frozen for the year. The FY 2026-27 Proposed Budget includes 599 full-time employees. On January 20, 2026, Council approved staff’srecommendation to utilize two part-time Concierge positions to convert to one full- time Office Specialist II position.

Table 4 - Budgeted Citywide Staffing Levels
The FY2026-27 Proposed Budget includes the reduction of 1.0 Park Ranger position in the Police Department. Also in the Police Department, is a reallocation of a Public Safety Dispatcher to a Public Safety Dispatch Supervisor to support training and operational needs.

The Development Services Department requests the reallocation of a Chief of Code Enforcement position to Senior Permit Technician to support building counter operations. The Department also intends to underfill an Assistant Planner position with a Planning Technician to provide needed support to the customer service counter.

The Proposed Budget will also include full funding for the Parks and Community Services Department Senior Center Community Outreach Worker.

Proposed Department Name Update
The Economic and Development Services Department is requesting a name change to “Community Development” to reflect their broader service base and purpose. This department performs a wide breadth of functions, manages all private-owned property in the City through the complete life cycle of the build environment. This includes reviewing new construction, managing land uses for new and existing buildings, overseeing operational details, housing and community program assistance,

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existing buildings, overseeing operational details, housing and community program assistance, ensuring property maintenance and code compliance, and finally, permitting demolition.

The name change to “CommunityDevelopment”would reflect the broader service base and purpose that the department provides to the City of Costa Mesa.

Commitment to Public Safety
The FY 2026-27 Proposed Budget allocates $109.3 million as the City’scommitment to public safety, comprising both the Police and Fire Departments. Public safety budgets account for approximately 55 percent of the General Fund Proposed Budget, with 35 percent allocated to the Police Department and 20 percent to the Fire and Rescue Department. Of the 599 citywide full-time personnel, approximately 38 percent are sworn positions.

The Police Department budget includes 142 full-time sworn personnel, with one new non-sworn Custody Officer in the proposed budget. Additionally, the Police Department manages the Animal Services and Enforcement Program. The Police Department’ssalaries and benefits budget increased by a net of $7.1 million, $3.3 is attributed to labor contractual agreements and retirement benefits, $122,000 in jail operations overtime, and $3.7 million in the removal of the vacancy factor.

The Fire and Rescue Department consists of 86 full-time sworn personnel. Its salaries and benefits budget increased by a net of $715,263, due to labor contractual agreements and retirement costs.

The Department is requesting to reallocate a vacant Emergency Services Coordinator position to a Battalion Chief to address operational needs.

These are some of the proposed actions that demonstrate the City’songoing commitment to the public’ssafety. The strong support of the City Council, along with the engagement of residents and community partners, continues to promote healthy, sustainable neighborhoods and balanced economic activity. Together, these efforts help maintain the high quality of services the City provides.

Finance and Pension Advisory Committee (FiPAC)
On May 7, 2026, Finance staff presented the FY 2026-27 Proposed Budget to FiPAC. The Committee commented on the proposed citywide vacancy factor and inquired about frozen positions and how they are accounted for in the vacancy factor. The Committee commented on whether additional funding was needed for the increasing cost of Utilities as the actual year-over-year expenditure has exceeded what has been budgeted in previous years. Further, the Committee inquired whether Police overtime has been budgeted to reflect actual historical costs. The Finance Department will return to FiPAC on May 13, 2026, for further discussion and recommendations to City Council.

ALTERNATIVES:

The City Council can provide alternative direction to staff on the FY 2026-27 Proposed Operating Budget.

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17 File #: 26-279 Meeting Date: 5/12/2026
FISCAL REVIEW:

Staff is requesting City Council provide feedback and direction in advance of final adoption of the FY 2026-27 Proposed Operating Budget. Staff will be bringing the FY 2026-27 Proposed Operating Budget forward to a Public Hearing on June 2, 2026, for additional feedback or final adoption. If needed, a second alternative final adoption date of Tuesday, June 16, 2026, is available.

LEGAL REVIEW:

The City Attorney’s Office has reviewed and approved this report as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Council goals:
· Strengthen the Public’s Safety and Improve the Quality of Life · Achieve Long-term Fiscal Sustainability
· Recruit and Retain High Quality Staff
· Diversify, Stabilize, and Increase Housing to Reflect Community Needs · Advance Environmental Sustainability and Climate Resiliency · Maintain and Enhance the City’s Facilities, Technology and Equipment CONCLUSION:

The overview of the Proposed Operating General Fund expenditure and revenue projections for FY 2026-27 was carefully evaluated with a cautious approach to any proposed increases. The FY 2026- 27 Proposed Budget creates a solid foundation for “Measured Decision. Meaningful Impact.” Staff recommend that the City Council discuss and provide feedback on the FY 2026-27 Proposed balanced budget.

Page 12 of 12 ends

18 Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
City Council
Council Member 7.00 7.00 7.00 7.00 7.00
Executive Assistant 1.00 1.00 1.00 1.00 1.00
Total City Council 8.00 8.00 8.00 8.00 8.00
City Manager’s Office
City Manager 1.00 1.00 1.00 1.00 1.00
Assistant City Manager 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Assistant to the City Manager 1.00 2.00 2.00 2.00 2.00 City Clerk 1.00 1.00 1.00 1.00 1.00
Community Outreach Worker ^ 2.00 7.00 6.00 7.00 7.00 Community Outreach Supervisor 1.00 1.00 1.00 1.00 1.00 Deputy City Clerk 2.00 2.00 2.00 2.00 2.00
Deputy City Manager 1.00 1.00 1.00 1.00 1.00
Energy and Sustainability Services Manager - 1.00 1.00 1.00 1.00 Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00
Graphics Designer 1.00 1.00 1.00 1.00 1.00
Human Resources Administrator 2.00 2.00 2.00 2.00 2.00 Human Resources Analyst ^ 4.00 4.00 3.00 3.00 3.00
Human Resources Manager 1.00 1.00 1.00 1.00 1.00
Human Resources Assistant 1.00 1.00 1.00 1.00 1.00
Human Resources Technician 1.00 1.00 1.00 1.00 1.00 Management Aide 2.00 1.00 1.00 1.00 1.00
Management Analyst 3.00 4.00 4.00 4.00 4.00
Neighborhood Improvement Manager 1.00 1.00 1.00 1.00 1.00 Office Specialist II 1.00 1.00 1.00 2.00 2.00
Principal Human Resources Analyst 2.00 2.00 2.00 2.00 2.00 Public Affairs Manager 2.00 3.00 3.00 3.00 3.00
Real Property Manager 1.00 - - - -
Senior Management Analyst ^ 3.00 2.00 1.00 1.00 1.00 Senior Code En forcement Offi cer 1.00 1.00 1.00 - -
Video Production Coordinator 1.00 1.00 1.00 1.00 1.00 Video Production Specialist 2.00 - - - -
Multimedia Specialist - 2.00 2.00 2.00 2.00
Website Coordinator/ Programmer Analyst I ^ 1.00 1.00 - - - Total City Manager’s Office 43.00 49.00 45.00 46.00 46.00 Finance Department
Finance Director 1.00 1.00 1.00 1.00 1.00
Accountant 1.00 1.00 1.00 1.00 1.00
Accounting Specialist I 1.00 1.00 1.00 1.00 1.00
Accounting Specialist II 4.00 4.00 4.00 4.00 4.00
Accounting Supervisor 1.00 - - - -
Administrative Assistant (CON) 1.00 1.00 1.00 1.00 62 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
ATTACHMENT 1
19 Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Assistant Finance Director 1.00 1.00 1.00 1.00 1.00 Budget and Purchasing Manager 1.00 1.00 1.00 1.00 1.00 Business License Inspector 1.00 1.00 1.00 1.00 1.00 Buyer 2.00 2.00 2.00 2.00 2.00
Executive Assistant 1.00 1.00 1.00 1.00 1.00 Financial Analyst 2.00 2.00 2.00 2.00 2.00 Finance Manager 1.00 1.00 1.00 1.00 1.00
Finance Officer- Accounting - 1.00 1.00 1.00 1.00 Finance Officer- Payroll (CON) - 1.00 1.00 1.00 1.00 Finance Officer- Purchasing - 1.00 1.00 1.00 1.00 Finance Officer- Revenue - 1.00 1.00 1.00 1.00 Payroll Coordinator 1.00 1.00 1.00 1.00 1.00 Payroll Supervisor 1.00 - - - -
Permit Processing Specialist 1.00 1.00 1.00 1.00 1.00 Purchasing Supervisor 1.00 - - - -
Revenue Supervisor 1.00 - - - -
Senior Accountant 1.00 1.00 1.00 1.00 1.00 Senior Budget Analyst 2.00 2.00 2.00 2.00 2.00 Total Finance Department 25.00 26.00 26.00 26.00 26.00 Parks And Community Services Department
Parks and Community Services Director 1.00 1.00 1.00 1.00 1.00 Arts Specialist 1.00 1.00 1.00 1.00 1.00
Community Outreach Worker 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Fairview Park Administrator 1.00 1.00 1.00 1.00 1.00 Fairview Park Senior Maintenance Technician 1.00 1.00 Maintenance Worker 1.00 1.00 1.00 - -
Office Specialist II* 1.00 1.00 1.00 1.00 1.00 Recreation Coordinator* 4.00 4.00 4.00 4.00 4.00 Recreation Manager 1.00 1.00 1.00 1.00 1.00 Recreation Specialist 7.00 8.00 8.00 8.00 8.00 Recreation Supervisor 3.00 3.00 3.00 3.00 3.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 Senior Recreation Supervisor 2.00 2.00 2.00 2.00 2.00 Total Parks and Community Svcs Department 25.00 26.00 26.00 26.00 26.00

Information Technology Department
Information Technology Director 1.00 1.00 1.00 1.00 1.00 Information Technology Manager 2.00 2.00 2.00 2.00 2.00 Computer Operations & Networking Sup. 1.00 1.00 1.00 1.00 1.00 Cyber Security Analyst 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Network Administrator 5.00 5.00 5.00 5.00 5.00 Office Specialist II 1.00 1.00 1.00 1.00 1.00 Programmer Analyst II 4.00 4.00 4.00 4.00 4.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 Senior Programmer Analyst 4.00 4.00 4.00 4.00 4.00 63City of Costa Mesa, California
suMMarIes of
fInancIal data
20 Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Systems & Programming Supervisor 1.00 1.00 1.00 1.00 1.00 Total Information Technology Department 22.00 22.00 22.00 22.00 22.00

Police Department
Police Chief 1.00 1.00 1.00 1.00 1.00
Deputy Police Chief 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Account Specialist II 1.00 1.00 1.00 1.00 Animal Services Coordinator 1.00 1.00 1.00 1.00 Animal Control Officer 3.00 3.00 3.00 3.00 3.00 Animal Control Supervisor 1.00 1.00 1.00 1.00 1.00 Civilian Investigator 1.00 1.00 1.00 1.00 1.00 Communications Installer 1.00 1.00 1.00 1.00 1.00 Communications Officer 11.00 11.00 11.00 11.00 11.00 Communications Supervisor 4.00 4.00 4.00 4.00 4.00 Community Services Specialist 7.00 7.00 7.00 7.00 7.00 Court Liaison 1.00 1.00 1.00 1.00 1.00
Crime Analyst 2.00 2.00 2.00 2.00 2.00
Crime Prevention Specialist 1.00 1.00 1.00 1.00 1.00 Crime Scene Investigation Supervisor 1.00 1.00 1.00 1.00 1.00 Crime Scene Specialist 4.00 4.00 4.00 4.00 4.00 Custody Officer** 10.00 10.00 11.00 11.00 10.00 Custody Supervisor** 1.00 1.00 1.00 1.00 2.00 Electronics Technician 1.00 1.00 1.00 1.00 1.00 Executive Assistant 2.00 2.00 2.00 2.00 2.00 Emergency Services Manager * 0.50 0.50 0.50 0.50 0.50 Office Specialist II 1.00 1.00 1.00 1.00 1.00 Park Ranger*** 6.00 7.00 7.00 7.00 6.00
Permit Processing Specialist - 1.00 1.00 1.00 1.00 Police Captain 2.00 2.00 2.00 2.00 2.00
Police Lieutenant 7.00 7.00 7.00 7.00 7.00 Police Officer 107.00 107.00 107.00 107.00 107.00 Police Records Bureau Supervisor 1.00 1.00 1.00 1.00 1.00 Police Records Shift Supervisor 3.00 3.00 3.00 3.00 3.00 Police Records and Property & Evidence Manager 1.00 1.00 1.00 1.00 1.00 Police Sergeant 22.00 22.00 22.00 22.00 22.00 Police Training Assistant 1.00 1.00 1.00 1.00 1.00 Property Evidence Specialist 2.00 3.00 1.00 1.00 1.00 Property Evidence Supervisor 1.00 1.00 1.00 1.00 1.00 Public Affairs Manager 1.00 1.00 1.00 1.00 1.00 Range Master 1.00 1.00 1.00 1.00 1.00
Recreation Coordinator 1.00 - - - -
Senior Property & Evidence Specialist 2.00 2.00 2.00 Senior Public Safety Dispatcher 6.00 6.00 6.00 6.00 6.00 Senior Communications Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 64 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
21 Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Senior Police Officer 2.00 2.00 2.00 2.00 2.00 Senior Police Records Technician 16.00 16.00 16.00 16.00 16.00 Telecommunications Manager 0.50 0.50 0.50 0.50 0.50 Total Police Department 238.00 242.00 243.00 243.00 242.00 **Reclassification of one Custody Officer to Custody Supervisor FY 2026-27 *** Reduction to one Park Ranger postion
Fire And Rescue Department
Fire Chief 1.00 1.00 1.00 1.00 1.00
Assistant Fire Chief/Operations - sworn 1.00 1.00 1.00 1.00 1.00 Assistant Fire Chief/Community Risk Reduction - non
sworn 1.00 1.00 1.00 1.00 1.00
Assistant Fire Marshal 2.00 2.00 2.00 2.00 2.00 Code Enforcement Officer 1.00 1.00 1.00 1.00 1.00 Battalion Chief 3.00 3.00 3.00 3.00 4.00
Emergency Medical Services Coordinator 1.00 1.00 1.00 1.00 - Emergency Services Manager * 0.50 0.50 0.50 0.50 0.50 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Fire Captain 18.00 18.00 18.00 18.00 18.00 Fire Captain - Administration/Training/PIO 1.00 1.00 1.00 1.00 1.00 Fire Captain - Administration/EMS 1.00 1.00 1.00 1.00 1.00 Fire Engineer 18.00 18.00 18.00 18.00 18.00 Fire Protection Specialist 3.00 3.00 3.00 3.00 3.00 Firefighter 42.00 42.00 42.00 42.00 42.00
Office Specialist II 1.00 1.00 1.00 1.00 1.00 Senior Manager Analyst 1.00 1.00 1.00 1.00 1.00 Telecommunications Manager * 0.50 0.50 0.50 0.50 0.50 Total Fire Department 97.00 97.00 97.00 97.00 97.00 * FY 2026-27 Emergency Mediacl Services Coordinator reclassifed to a Battalion Chief

Development Services Department
Economic & Development Services Director 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Assistant Development Services Director 1.00 1.00 1.00 1.00 1.00 Assistant Planner 4.00 4.00 4.00 4.00 4.00 Associate Planner 3.00 3.00 3.00 3.00 3.00 Building/Combination Bldg. Inspector 4.00 4.00 4.00 - - Building Inspector I/II 4.00 4.00
Building Official 1.00 1.00 1.00 1.00 1.00 Building Technician II 3.00 4.00 4.00 4.00 4.00 Chief of Code Enforcement * 1.00 1.00 1.00 1.00 - Chief of Inspection 1.00 1.00 1.00 1.00 1.00 Chief Plans Examiner 1.00 1.00 1.00 1.00 1.00 Code Enforcement Officer * 7.00 7.00 7.00 7.00 7.00 Code Enforcement Manager 1.00 1.00
Community Improvement Manager 1.00 1.00 1.00 - - Economic Development Administrator 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 65City of Costa Mesa, California
suMMarIes of
fInancIal data
22 Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Grant Administrator 1.00 1.00 1.00 1.00 1.00 Management Analyst 1.00 1.00 1.00 1.00 1.00 Office Specialist II * 1.00 1.00 1.00 1.00 1.00 Permit Processing Specialist 3.00 3.00 3.00 3.00 3.00 Planning Manager 2.00 2.00
Planning and Sustainable Development Manager 1.00 2.00 2.00 - - Plan Check Engineer 3.00 3.00 3.00 3.00 3.00 Principal Planner 2.00 2.00 2.00 2.00 2.00 Senior Code Enforcement Officer 2.00 2.00 2.00 2.00 2.00 Senior Combination Inspector 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 2.00 2.00 2.00 2.00 2.00 Senior Permit Technican 1.00
Senior Planner 2.00 3.00 3.00 3.00 3.00
Total Development Services Department 50.00 53.00 53.00 53.00 53.00

Public Works Department
Public Works Director 1.00 1.00 1.00 1.00 1.00 Active Transportation Coordinator 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 3.00 3.00 3.00 3.00 3.00 Assistant Engineer 4.00 4.00 4.00 4.00 4.00 Assistant City Engineer 1.00 1.00 1.00 1.00 1.00 Associate Engineer 8.00 8.00 8.00 8.00 8.00 City Engineer 1.00 1.00 1.00 1.00 1.00
Construction Inspector 3.00 3.00 3.00 3.00 3.00 Deputy Director of Public Works 1.00 1.00 1.00 1.00 1.00 Energy and Sustainability Service Manager 1.00 - - - - Engineering Technician II 1.00 1.00 1.00 1.00 1.00 Engineering Technician III * 5.00 5.00 5.00 5.00 5.00 Equipment Mechanic I 1.00 1.00 1.00 - -
Equipment Mechanic II 2.00 2.00 2.00 2.00 2.00 Equipment Mechanic III 2.00 2.00 2.00 3.00 3.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Facilities Maintenance Technician * 2.00 2.00 2.00 2.00 2.00 Lead Facilities Maintenance Technician 2.00 2.00 2.00 2.00 2.00 Lead Maintenance Worker 7.00 7.00 7.00 7.00 7.00 Lead Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 Maintenance Assistant 1.00 1.00 1.00 1.00 1.00 Maintenance Services Manager 1.00 1.00 1.00 1.00 1.00 Maintenance Superintendent 3.00 3.00 3.00 3.00 3.00 Maintenance Supervisor * 5.00 5.00 5.00 5.00 5.00 Maintenance Worker 4.00 4.00 4.00 4.00 4.00 Management Analyst 1.00 1.00 1.00 - -
Office Specialist II 2.00 2.00 2.00 2.00 2.00 Senior Engineer * 4.00 4.00 4.00 4.00 4.00 Senior Maintenance Worker 6.00 6.00 6.00 6.00 6.00 Senior Management Analyst 2.00 2.00 2.00 3.00 3.00 Storekeeper 2.00 2.00 2.00 2.00 2.00
66 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
23 Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Transportation Services Manager 1.00 1.00 1.00 1.00 1.00 Total Public Works Department 80.00 79.00 79.00 79.00 79.00

Total Full-time Employees 588.00 602.00 599.00 600.00 599.00

Part-Time Employees FTE’s (Full-Time Equivalents)

City Manager’s Office 8.32 8.32 8.32 7.32 7.32 Finance Department - 0.75 0.75 0.75 0.75
Parks and Community Services 63.82 62.57 62.57 62.57 62.57 Police Department 16.86 14.75 22.25 22.25 22.25 Fire and Rescue Department 2.25 2.25 2.25 2.25 2.25 Development Services Department 5.34 5.34 5.34 5.34 5.34 Public Works Department 5.50 6.00 6.00 6.00 6.00

Total Part-time FTEs 102.09 99.98 107.48 106.48 106.48

Total Citywide FTEs 690.09 704.09 706.48 706.48 705.48 67City of Costa Mesa, California
suMMarIes of
fInancIal data
24 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

GENERAL FUND
Fund 101 - General Fund $ 184,490,064 $ 190,046,650 $ 186,855,606 $ 199,966,575 7%

SPECIAL REVENUE FUNDS
Fund 130 - Cultural Arts Master Plan
Cannabis Q Bus Tax $ 1 32,412 $ 2 31,201 $ 2 42,200 $ 2 42,200 0% Total Fund 130 $ 132,412 $ 231,201 $ 242,200 $ 242,200 0% Fund 140 - First Time Homebuyer Program
Cannabis X Bus Tax $ - $ - $ 2 42,200 $ 2 42,200 0% Cannabis Q Bus Tax 1 32,412 231,201 - - 0%
Total Fund 140 $ 132,412 $ 231,201 $ 242,200 $ 242,200 0% Fund 150 - Disaster Fund
FEMA Disaster Reimbursement $ - $ 6 3,574 $ - $ - 0% Total Fund 150 $ - $ 6 3,574 $ - $ - 0%
Fund 201 - Gas Tax
Investment Earnings $ 2 09,088 $ 3 42,767 $ - $ - 0% GASB 31 Market Value Adjustmnt 14 0,331 134,499 - - 0% Gasoline Tax - Section 2103 1 ,023,298 1 ,074,745 1 ,023,777 1 ,099,842 7 % Gasoline Tax - Section 2105 682,428 698,938 716,150 7 35,444 3 % Gasoline Tax - Section 2106 439,467 4 55,475 458,786 4 74,070 3 % Gasoline Tax - Section 2107.1 9 23,725 927,202 977,383 9 83,457 1 % Gasoline Tax - Section 2107.5 1 0,000 1 0,000 10,000 10,000 0% Other Reimbursements 167,874 218,959 - - 0%
Total Fund 201 $ 3,596,212 $ 3,862,586 $ 3, 186,096 $ 3,302,813 4% Fund 203 - Air Quality
Investment Earnings $ 10 ,571 $ 1 7,906 $ - $ - 0% Air Q uality I mprovement F ees 1 50,191 14 5,853 14 5,800 14 5,800 0% GASB 31 Market Value Adjustmnt 6,940 8, 968 - - 0%
Total Fund 203 $ 167,702 $ 172,727 $ 145,800 $ 145,800 0% Fund 204 - American Rescue Plan
Investment Earnings $ 1 66,876 $ 77 ,484 $ - $ - 10 0% American Rescue Plan 3 ,620,652 4, 894,160 - - 0%
Total Fund 204 $ 3,787,528 $ 4,971,644 $ - $ - 100%
Fund 205 - HOME Investment Partnerships Program (HOME)
Lien/Loan Repayment $ 1 23,856 $ 13 4,836 $ 2 0,000 $ 4 0,000 10 0% Investment Earnings 34,543 8,791 - - 0%
HOME Invest. Partnership Grant 93 0,233 5 60,386 3 76,014 3 40,848 - 9% GASB 31 Market Value Adjustmnt 3 ,752 5,864 - - 0%
Total Fund 205 $ 1,092,383 $ 709,877 $ 396,014 $ 380,848 -4% 32 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
ATTACHMENT 2
25 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

Fund 207 - Community Development Block Grant (CDBG)
Lien/Loan Repayment $ 30,900 $ - $ - $ - 0% Community Dev. Block Grant $ 619,833 $ 1,509,889 $ 874,288 $ 815,535 -7% Investment Earnings 4 1,661 - - 0%
Total Fund 207 $ 650,738 $ 1,511,551 $ 874,288 $ 815,535 -7%

Fund 213 - Supplemental Law Enforcement Services (SLESF) Investment Earnings $ (33) $ (42) $ - $ - 0% Citizens’ Option Public Safety 321,103 332,622 332,622 332,622 0% GASB 31 Market Value Adjustmnt 292 - - - 0% Total Fund 213 $ 321,361 $ 332,580 $ 332,622 $ 332,622 0%

Fund 216 - Rental Rehabilitation Program
Investment Earnings $ 6,975 $ 10,767 $ - $ - 0% GASB 31 Market Value Adjustmnt 4,318 4,997 - - 0% Lien/Loan Repayment - 40,000 - - 0%
Total Fund 216 $ 11,293 $ 55,764 $ - $ - 0%

Fund 217 - Narcotics Forfeiture
Investment Earnings $ 38,985 $ 53,871 $ - $ - 0% Asset Forfeiture - Treasury 125,118 18,655 - - 0% GASB 31 Market Value Adjustmnt 23,516 24,215 - - 0% Total Fund 217 $ 187,619 $ 96,741 $ - $ - 0%

Fund 220 - Office of Traffic Safety
Other Federal Grants $ 170,219 $ 329,559 $ - $ - 0% Total Fund 220 $ 170,219 $ 329,559 $ - $ - 0%

Fund 230 - Federal Grants
Investment Earnings $ 78,150 $ 87,733 $ - $ - 0% Other Federal Grants 31,179 1,225,911 6,382,000 4,745,000 -26% Local Law Enforcemnt Blk Grnt 5,638 18,946 - - 0% Other State Grants 47,310 - - - 0%
Other County Grants/Programs 83,009 - - - 0% Total Fund 230 $ 245,286 $ 1,332,590 $ 6,382,000 $ 4,745,000 -26%

Fund 231 - State Grants
Other State Grants $ 2,994,375 $ 6,266,404 $ 375,000 $ 724,920 93% Total Fund 231 $ 2,994,375 $ 6,266,404 $ 375,000 $ 724,920 93%

Fund 232 - Federal Grants
State/Local Partnership Grant $ 50,000 $ - $ - $ - 0% Other Governmental Agencies 63,602 329,200 500,000 650,000 30% Investment Earnings 78 (80) - - 0%
Total Fund 230 $ 113,680 $ 329,121 $ 500,000 $ 650,000 30%

33City of Costa Mesa, California
suMMarIes of
fInancIal data
26 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Fund 251 - Road Maintenance and Rehabilitation Account (RMRA) Gas Tax Investment Earnings $ 297, 830 $ 446,790 $ - $ - 0% Gasoline Tax - RMRA 2,902,974 3,069,996 2,951,612 3,156,556 7% GASB 31 Market Value Adjustmnt 198,542 218,444 - - 0% Total Fund 251 $ 3,399,347 $ 3,735,230 $ 2,951,612 $ 3,156,556 7%

CAPITAL PROJECTS FUNDS
Fund 208 - Park Development Fees
Investment Earnings $ 66,926 $ 74,554 $ - $ - 0% Park Development Fees 142,598 262,786 100,000 200,000 100% GASB 31 Market Value Adjustmnt 36,908 29,783 - - 0% Total Fund 208 $ 246,433 $ 367,122 $ 100,000 $ 200,000 100%

Fund 209 - Drainage Fees
Investment Earnings $ 53,870 $ 74,699 $ 2,339 $ - -100% Drainage Assessment Fees 81,806 150,933 100,000 120,000 20% GASB 31 Market Value Adjustmnt 32,291 34,818 - - 0% Total Fund 209 $ 167,968 $ 260,450 $ 102,339 $ 120,000 17%

Fund 214 - Traffic Impact Fees
Investment Earnings $ 120,724 $ 145,916 $ - $ - 0% Traffic Impact Fees 39,292 554,731 600,000 400,000 -33% GASB 31 Market Value Adjustmnt 69,611 61,768 - - 0% Total Fund 214 $ 229,627 $ 762,416 $ 600,000 $ 400,000 -33%

Fund 401 - Capital Outlay
Investment Earnings $ 726,432 $ 1,067, 851 $ - $ - 0% GASB 31 Market Value Adjustmnt 477,293 502,418 - - 0% Other Federal Grants 2,972 516,334 - - 0% Other Governmental Agencies 150,000 50,000 - - 0% Other Reimbursements 9,254 22,376 - - 0%
Other 26,598 25 - - 0%
Total Revenues $ 1,392,551 $ 2,159,003 $ - $ - 0% Operating Transfers In $ 7,194,994 $ 3,949,994 $ 1,200,000 $ 6,709,516 459% Total Other Financing Sources $ 7,194,994 $ 3,949,994 $ 1,200,000 $ 6,709,516 459% Total Fund 401 $ 8,587,545 $ 6,108,997 $ 1,200,000 $ 6,709,516 459%

34 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
27 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Fund 409 - Vehicle Parking District 1
Secured Property Tax $ 9,124 $ 9,972 $ 4,000 $ 4,000 0% Unsecured Property Tax 12 13 12 12 0%
Supplemental Property Tax 11 10 11 11 0%
Homeowners Property Tax 2 2 2 2 0%
Delinquent Tax - Penalties/Int 1 1 1 1 0% Investment Earnings 1,284 2,072 - - 0%
GASB 31 Market Value Adjustmnt 870 1,026 - - 0% Total Fund 409 $ 11,303 $ 13,095 $ 4,026 $ 4,026 0%

Fund 410 - Vehicle Parking District 2
Secured Property Tax $ 15,4 40 $ 17, 894 $ 12,260 $ 12,260 0% Unsecured Property Tax 10 11 11 11 0%
Supplemental Property Tax 9 8 11 11 0%
Homeowners Property Tax 1 1 2 2 0%
Delinquent Tax - Penalties/Int 0 1 1 1 0% Investment Earnings 2,844 4,445 - - 0%
GASB 31 Market Value Adjustmnt 1,888 2,174 - - 0% Total Fund 410 $ 20,193 $ 24,534 $ 12,285 $ 12,285 0%

Fund 413 - Golf Course Improvement
Investment Earnings $ 15,581 $ 67,726 $ - $ - 0% Golf Course Operations 179,443 186,142 110,000 110,000 0% GASB 31 Market Value Adjustmnt 9,183 12,030 - - 0% Total Fund 413 $ 204,207 $ 265,897 $ 110,000 $ 110,000 0% Fund 415 - Measure M2 Competitive
Measure “M2” Regional Grant $ 680,760 $ 375,000 $ - $ - 0% Total Fund 415 $ 680,760 $ 375,000 $ - $ - 0%

Fund 416 - Measure M2 Fairshare
Investment Earnings $ 176,465 $ 254,273 $ - $ - 0% Measure “M2” Fairshare 3,489,746 3,485,654 3,982,472 3,675,207 -8% GASB 31 Market Value Adjustmnt 119,330 120,327 - - 0% Total Fund 416 $ 3,785,541 $ 3,860,254 $ 3,982,472 $ 3,675,207 -8% Fund 417 - Jack Hammett Sports Complex Capital Improvement Investment Earnings $ 9,809 $ 15,605 $ - $ - 0% Jack Hammett Field Rental 165,000 - - - 0% GASB 31 Market Value Adjustmnt 7,527 8,278 - - 0% Total Fund 417 $ 182,336 $ 23,882 $ - $ - 0%

Fund 420 - Park Land Acquisition
Operating Transfers In $ 384,576 $ - $ - $ - 100% Investment Earnings $ 1,516 $ 11,104 $ - $ - 0% GASB 31 Market Value Adjustmnt $ 5,866 $ 5,960 $ - $ - 0% Total Fund 420 $ 391,958 $ 17,065 $ - $ - 100% 35City of Costa Mesa, California
suMMarIes of
fInancIal data
28 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

INTERNAL SERVICE FUNDS
Fund 601 - Equipment Replacement Fund
Investment Earnings $ 193,338 $ 190,744 $ 52,313 $ 52,313 0% Sale of Automotive Equipment 118,453 123,424 - - 0% Sale of Other Equipment 59,764 4,406 - - 0% Automotive Equipment, Rental 5,846,393 6,143,747 5,901,286 5,901,286 0% GASB 31 Market Value Adjustmnt 117,420 98,154 - - 0% Damage to City Property 10,000 - - - 0%
Other Reimbursements - 44,188 - - 0%
Other - 232 - - 0%
Total Revenues $ 6,345,367 $ 6,604,893 $ 5,953,599 $ 5,953,599 0% Operating Transfers In $ 170,000 $ - $ - $ - 0% Total Other Financing Sources $ 170,000 $ - $ - $ - 0% Total Fund 601 $ 6,515,367 $ 6,604,893 $ 5,953,599 $ 5,953,599 0%

Fund 602 - Self Insurance Fund
Investment Earnings $ 452,080 $ 556,617 $ - $ - 0% Unemployment Premiums 80,180 80,180 80,180 80,180 0% General Liability Premiums 2,072,221 2,072,221 2,392,171 2,900,864 21% Workers’ Compensation Premiums 2,939,914 2,939,914 2,939,914 2,939,914 0% GASB 31 Market Value Adjustmnt 283,642 255,878 - - 0% Damage to City Property - 29,258 - - 0%
Total Revenues $ 5,828,037 $ 5,934,068 $ 5,412,265 $ 5,920,958 9% Operating Transfers In $ 432,039 $ - $ - $ - 0% Total Other Financing Sources $ 432,039 $ - $ - $ - 0% Total Fund 602 $ 6,260,076 $ 5,934,068 $ 5,412,265 $ 5,920,958 9% Fund 603 - IT Replacement Fund
Investment Earnings $ 248,493 $ 362,202 $ - $ - 0% GASB 31 Market Value Adjustmnt 174,489 189,300 - - 0% Total Revenues $ 422,981 $ 551,501 $ - $ - 0%
Operating Transfers In $ 3,114, 347 $ 2,856,000 $ 1,597, 836 $ 3,115,809 95% Total Other Financing Sources $ 3,114,347 $ 2,856,000 $ 1,597,836 $ 3,115,809 95% Total Fund 603 $ 3,537,328 $ 3,407,501 $ 1,597,836 $ 3,115,809 95%

TOTAL REVENUES $ 221,401,890 $ 235,498,183 $ 218,760,424 $ 231,101,144 6% TOTAL OTHER SOURCES $ 10,911,380 $ 6,805,994 $ 2,797,836 $ 9,825,325 251% GRAND TOTAL ALL FUNDS $ 232,313,270 $ 242,304,177 $ 221,558,260 $ 240,926,469 9% 36 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
29 General Fund Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

GENERAL FUND
Fund 101 - General Fund

Taxes
Secured Property Tax $ 37,592 ,131 $ 39,550,555 $ 42,215,803 $ 42,471,611 1% Unsecured Property Tax 1,091,599 1,231,279 1,225,024 1,459,338 19% Supplemental Property Tax 933,133 948,375 996,508 1,010,873 1% Homeowners Property Tax 145,287 144,520 168,295 151,779 -10% Delinquent Tax - Penalties/Int 68,540 81,685 72,539 89,629 24% Property Transfer Tax 995,403 871,383 1,139,605 924,364 -19% Property Tax In-Lieu of VLF 15,639,656 16,489,859 17,154,400 17,903,308 4% Sales Tax 76,400,160 78,244,492 73,654,333 81,105,836 10% Sales Tax - Prop 172 1,396,143 1,392,219 1,395,843 1,435,997 3% Transient Occupancy Tax 10,150,696 9,962,421 9,843,276 10,573,611 7% Electric Utility Franchise Tax 1,781,661 1,859,611 1,859,611 1,896,233 2% Cable TV Franchise Tax 722,645 646,857 838,557 486,242 -42% PEG Cable TV Franchise Tax 172,565 125,179 164,416 108,623 -34% Gas Utility Franchise Tax 392,610 258,366 412,610 302,586 -27% Business License Tax 707,121 978,401 940,807 980,741 4% - - -
Solid WasteHauler Frnchise Tax 3,473,321 3,747,137 3,603,384 4,639,062 29% Cannabis X Bus Tax 514,354 747,736 708,201 779,376 10% Cannabis Q Bus Tax 2,416,215 2,871,971 2,907,066 2,884,977 - Total Taxes $ 154,593,240 $ 160,152,045 $ 159,300,278 $ 169,204,186 6%

Licenses and Permits
Dog Licenses $ 63,545 $ 70,818 $ 74,066 $ 66,183 -11% Fire Permits 77,610 92,565 101,542 97,706 -4% Fire Construction Permits 101,680 97,651 243,155 118,212 -51% Building Permits 2,318,788 3,065,605 3,344,210 3,511,420 5% Electrical Permits 215,770 225,751 293,872 279,983 -5% Plumbing/Mechanical Permits 232,545 282,246 318,505 299,059 -6% Street Permits 881,628 955,175 908,510 1,320,701 45% Special Business Permits - - 430 - -100% Cannabis X Bus Permit 273,236 159,734 191,465 84,099 -56% Cannabis Q Bus Permit - 68,088 118,441 88,972 -25% Home Occupation Permits 15,901 19,600 25,963 19,631 -24% Operator’s Permits 9,406 4,875 2,500 4,259 70% Self-Haul Permit 40,600 32,800 37,260 33,161 -11% Other Permits 37,897 42,591 40,308 46,934 16% Total Licenses and Permits $ 4,268,606 $ 5,117,499 $ 5,700,227 $ 5,970,320 5%

37City of Costa Mesa, California
suMMarIes of
fInancIal data
30 General Fund Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Fund 101 - General Fund (continued)

Fines and Forfeitures
Municipal Code Violations $ 83,752 $ 111, 391 $ 175,000 $ 116, 25 4 -34% Vehicle Code Violations 215,612 251,913 293,588 285,033 -3% Parking Citations 980,277 1,069,108 803,503 1,240,704 54% Red-Light Violation 17,678 23,352 30,000 20,000 -33% Total Fines and Forfeitures $ 1,297,319 $ 1,455,764 $ 1,302,091 $ 1,661,991 28%

Use of Money and Property
Investment Earnings $ 1,167,6 35 $ 1,585,572 $ 500,000 $ 1,100,000 120% GASB 31 Market Value Adjustmnt 779,833 643,356 (500,000) - -100% Int. Earned on Lease Payments 113,866 50,135 88,493 50,000 -43% Buildings/Grounds, Rental 250,879 251,784 260,000 252,288 -3% Downtown Community Center,Rent 22,021 33,910 21,758 33,978 56% Balearic Community Center,Rent 11,831 13,027 12,573 13,053 4% N Hertzog Comm Center, Rent 107,158 127,166 128,122 129,222 1% Senior Center, Rental 140 - - - 100%
Field Rental 148,210 167,089 202,311 202,102 0% Tennis,Rental 73,816 72,406 100,000 63,481 -37% 3175 Airway Rental 125,940 72,263 - - 100% Golf Course Operations 3,717,380 3,974,455 4,205,161 4,193,934 0% Bus Shelter Advertising 55,419 99,325 89,832 103,565 15% Total Use of Money and Property $ 6,574,128 $ 7,090,489 $ 5,108,250 $ 6,141,623 20%

Other Government Agencies
Other Federal Grants $ 838,889 $ 326,713 $ 53,354 $ - -100% Motor Vehicle In-Lieu Tax 138,951 177,378 177,378 203,035 14% Peace Offcrs. Stand./Training 28,253 27,273 30,300 30,000 -1% Beverage Container Program - - 31,050 - -100% Mattress Recycling Council 9,000 7,770 10,500 7,700 -27% Reimb. of Mandated Costs 252,485 245,827 55,000 258,118 369% Other State Grants 618,821 1,141,377 350,000 650,000 86% Other County Grants/Programs 294,107 257,866 230,000 300,000 30%

Total Other Govt. Agencies $ 2,180,506 $ 2,184,204 $ 937,582 $ 1,448,853 55%

Fees and Charges
Plan Check Fee $ 1,367,067 $ 1,654,522 $ 1,765,079 $ 2,057,180 17% Zoning, Variance & CUP Fees 373,225 362,735 411,971 $ 453,178 10% Cannabis X CUP - - - $ 22,105 100%
Cannabis Q CUP 36,998 (14,799) - $ - 100% Subdivision Map Fees 32,600 50,600 28,070 $ 54,193 93% Environmental Impact Fees 1,530 15,926 6,469 $ 17, 223 166% Vacation/Abandonment of R-O-W - - 750 $ - -100% 38 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
31 General Fund Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Fund 101 - General Fund (continued)
Fees and Charges (continued)
Source Reduction/Recycling $ 1,830 $ 2,440 $ 2,484 $ 2,613 5% Self Haul Per-Project Fee 190,088 263,745 230,000 227,328 -1% Special Policing Fees 426,674 454,072 400,000 486,311 22% Cannabis X Background 144,499 61,181 38,813 30,051 -23% Cannabis Q Background 199,396 53,856 60,576 46,696 -23% Vehicle Storage/Impound Fees 337,100 466,293 350,000 481,705 38% Vehicle Code Violation Fee 780 735 1,085 267 -75% Repossessed Veh. Release Fees 3,090 3,261 3,728 3,625 -3% DUI Emergency Response - - - - 100%
Police False Alarms 168,753 262,345 200,000 217,701 9% Fingerprinting 13,372 9,568 23,175 5,947 -74% Animal Pound Fees - 20,010 - 6,027 100%
Fire Inspections 4,930 3,735 10,350 5,141 -50% EMS - First Responder Fee - - 1,001 - -100% Paramedic Fee - Advanced 7,105,819 7,462,703 7,898,04 4 8,227,630 4% Paramedic GEMT Fees - - (140,887) (140,887) 0% Fire Plan Review Fees 79,643 87,754 158,288 120,408 -24% Accident Cost Recovery 33,403 12,136 26,486 - -100% Fire Special Event Fees 20,845 18,614 41,462 79,550 92% Park Permits 50,849 48,714 50,000 37,494 -25% Park Improvements 7,185 2,215 17,624 4,730 -73% Youth Sports (0) - - - -
Aquatics 90,987 116,902 73,200 87,663 20% Day Camp 199,885 180,235 187,500 160,000 -15% Playgrounds 308,380 343,133 308,339 350,219 14% Special Events 39,420 32,200 37,800 23,946 -37% Early Childhood 132,241 129,052 131,328 134,305 2% Instructional Classes 201,533 226,868 350,000 248,349 -29% Basketball 27,275 31,369 26,200 - -100%
Adult Open Gym 9,855 11,176 6,750 12,192 81% Softball 38,283 34,320 37,500 34,867 -7% Adult Futsal - - - - 100%
Teen Camp 38,725 51,907 37,000 35,000 -5% Senior Center Charges 9,621 10,217 7,800 12,508 60% Community Event Charges 1,825 (30) 6,500 - -100% Photocopies 3,752 3,503 3,300 3,500 6%
Building Doc Retention Fee 12,652 870 91,080 - -100% Police Reports 27,765 23,517 29,246 26,458 -10% Police Clearance Letters 2,910 2,395 3,958 2,515 -36% Sale of Other Supplies - - 700 - -100%
Central Services Charges 66,875 65,936 80,000 66,029 -17% Business License Proc Fee 36,202 40,365 45,000 43,932 -2% EV Charge Station Fees 37,823 60,884 40,000 55,705 39% Other Charges for Services 15,583 24,629 30,000 7,606 -75% Special Assessments - - 1,000 - -100%
39City of Costa Mesa, California
suMMarIes of
fInancIal data
32 General Fund Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Residential Permit Parking 3 0,712 37,683 6 2,437 4 5,383 -2 7% TESSA C. Cards Transaction Fee - - - 1 93,162 -
Total Fees and Charges $ 11,931,983 $ 12,729,491 $ 13,181,206 $ 13,989,555 6% Fund 101 - General Fund (continued)
Other Revenues
Contributions $ - $ - $ 2 5,000 $ - - 100%
Sponsorship 6 1,000 3 2,500 60,000 112,000 8 7%
Donations 7 5,006 50,006 7 5,000 5 0,000 - 33%
Construction Permit Insp. Fees 158,745 1 98,250 1 80,000 1 86,164 3 % Damage to City Property 160,899 25 ,007 1 00,000 61,974 - 38% Civil Subpoena Costs 18,433 1 9,410 14 ,407 14 ,466 0% Settlements Revenue 113,012 42,091 20,000 11,268 - 44% Bus Shelter Maint Reimb 35,000 - 35,000 7 0,000 10 0% Public Notices 11,752 31,900 24,840 3 3,993 3 7%
Other Reimbursements 7 89,620 8 62,596 470,000 832,538 7 7% Nonoperating Income - Other 1,368,045 - - - 10 0%
Sale of Other Equipment - - 100 - - 100%
Other ( 89,923) 2 9,168 300,000 157,64 4 - 47%
Other Governmental Agencies 4 9,577 25,599 21,625 20,000 - 8% Total Other Revenues $ 2,751,165 $ 1,316,527 $ 1,325,972 $ 1,550,047 17% Total Revenues $ 183,596,946 $ 190,046,019 $ 186,855,606 $ 199,966,575 7% Other Financing Sources
Operating Transfers In $ 888 ,618 $ 6 31 $ - $ - 10 0% Total Other Financing Sources $ 888,618 $ 631 $ - $ - 100% Total Fund 101 $ 184,485,564 $ 190,046,650 $ 186,855,606 $ 199,966,575 7% 40 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
ATTACHMENT 3
33 Summary of Appropriations by Account - All Funds (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
Account
Number
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Salaries and Benefits
Salaries and Wages 501000 $ - $ - $ (4 ,346,404) $ ( 4,027,157) Salaries & Wages 501001 - - 1,977,205 2, 938,589
Regular Salaries - Sworn 501100 26,301,467 27,197,952 2 9,599,752 30,899,907 Regular Salaries - Non-Sworn 501200 31,150,967 3 5,647,454 3 8,090,342 42,069,326 Regular Salaries - Part-Time 501300 5,724,714 5,970,991 5 ,023,463 5,007,353 Overtime 501400 8 ,314,837 1 0,917,873 4,904,449 5 ,025,449 Accrual Payoff - Excess Max. 501500 5 57,926 540,031 1 91,128 1 91,128 Vacation/Comp. Time Cash Out 501600 520,372 6 56,840 303,980 303,980 Holiday Allowance 501700 971,160 1 ,125,879 979,119 976,584 Separation Pay-Off 501800 391,598 4 46,192 145,776 145,776 Other Compensation 501900 3,961,466 4,218,914 4,366,638 4 ,823,497 Cafeteria Plan 505100 12 ,229,132 12,839,839 1 4,267,153 1 4,481,455 Medicare 505200 1,191,314 1,327,962 1,114,701 1 ,369,335 Retirement 505300 3 6,028,770 3 9,451,185 41,726,930 4 4,054,523 Longevity 505400 460,619 1 ,000,957 1,199,524 1 ,198,758 Executive Prof Development 505500 74,626 87,069 10 9,526 103,670 Auto Allowance 505600 3 8,415 46,707 48,300 48,300
Unemployment 505800 26 ,854 13 ,058 80,020 80,000
Workers’ Compensation 505900 2,225,102 2 ,828,403 2,207,147 2 ,207,049 City Contrib - Retiree Medical 506100 1 ,900,907 1,987,615 2,460,000 2,460,000 Subtotal Salaries and Benefits $ 132,070,247 $ 146,304,923 $ 144,448,749 $ 154,357,520 Maintenance and Operations
Stationery a nd O ffice 510100 $ 2 20,970 $ 2 15,320 $ 2 19,650 $ 1 92,250 Multi-Media, Promos, Subscrpt. 510200 8 78,106 846,996 658,689 522,305 Small Tools and Equipment 510300 8 41,094 2 87,940 255,092 2 23,026 Uniforms and Clothing 510400 4 64,528 631,690 422,250 379,750 Safety and Health 510500 736,134 580,790 6 58,622 605,931 Maintenance and Construction 510600 1,155,456 95 4,538 7 17,250 7 17,250 Agriculture 510700 10 1,227 63,378 97,000 97,000
Fuel 510800 7 04,695 8 36,924 701 ,400 701 ,400
Electricity - Buildings & Fac. 515100 8 86,363 9 16,336 580,020 580,020 Electricity - Power 515200 3 64,680 324,763 2 81,800 2 81,800 Electricity - Street Lights 515300 1 ,237,221 1 ,272,173 1,000,000 1,000,000 Gas 515400 6 4,014 7 7,786 4 5,400 4 5,400
Water - Domestic 515500 61,352 92,761 76,100 76,100
Water - Parks and Parkways 515600 805,573 1 ,004,422 8 59,100 8 59,100 Waste Disposal 515700 2 71,191 25 8,605 2 62,462 262,702 Janitorial and Housekeeping 515800 5 86,380 6 29,518 6 92,143 6 92,143 Legal Advertising/Filing Fees 520200 223,108 2 92,731 329,600 325,600 Advertising and Public Info. 520300 2 3,582 14,673 1 6,300 1 5,900 Telephone/Radio/Communications 520400 1 ,017,966 9 13,232 8 10,089 8 10,089 Business Meetings 520500 9 7,076 123,191 51,580 54,445 54 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
ATTACHMENT 4
34 Mileage Reimbursement 520600 1,735 2,051 3,300 3,300 Dues and Memberships 520700 212,695 230,838 208,712 206,412 Board Member Fees 520800 50,200 50,600 49,700 48,806 Professional Development 520900 706,234 779,959 672,827 480,381 Buildings and Structures 525100 439,094 399,490 376,913 337,163 Landscaping and Sprinklers 525200 3,449,870 3,546,622 3,520,500 3,520,500 Automotive Equipment 525400 464,611 592,059 464,728 464,728 Office Furniture 525600 11,614 - 2,000 2,000 Office Equipment 525700 80,576 79,666 66,631 56,831 Other Equipment 525800 1,397,437 1,221,310 941,650 839,150 Streets, Alleys and Sidewalks 525900 1,726,929 1,753,245 1,812,790 1,812,790 Employment 530100 20,399 17,092 26,000 16,000 Consulting 530200 3,869,110 3,706,281 3,757,822 3,939,731 Legal 530300 1,947,474 1,4 47,516 2,880,450 1,825,211 Engineering and Architectural 530400 384,122 419,678 557,912 477,912 Financial & Information Svcs. 530500 683,969 531,852 1,078,750 677,971 Medical and Health Inspection 530600 192,811 282,744 228,100 226,100 Public Safety 530700 2,875,287 3,003,287 3,252,920 3,206,320 Recreation 530800 433,038 477,614 645,620 622,374 Sanitation 530900 46,960 1,040 1,200 1,200
Principal Payments 535100 2,254,849 2,607,704 3,738,983 3,838,983 Interest Payments 535200 996,717 958,932 1,156,448 1,156,448 External Rent 535400 805,389 669,327 965,742 993,909 Grants, Loans and Subsidies 535500 2,147,134 2,388,122 2,124,914 2,329,028 Depreciation 535600 1,532,452 1,632,720 1,679,726 1,375,000 Internal Rent Central Services 535800 66,875 65,936 99,722 99,722 Internal Rent Postage 535900 151,327 121,240 111,334 110,792 Internal Rent - Maintenance 536100 884,887 885,447 884,887 884,887 Internal Rent - Repl Cost 536200 4,385,219 4,514,439 4,514,999 4,514,999 Internal Rent - Fuel 536400 573,094 501,777 501,400 501,400 Internal Rent Genl Liability 536500 2,072,221 2,072,221 2,392,171 2,900,864 Internal Rent Workers’ Comp 536600 2,939,914 2,939,914 2,939,914 2,939,915 Internal Rent Unemployment 536700 80,180 80,180 80,180 80,180 General Liability 540100 2,047,044 2,748,558 2,082,251 2,590,944 Special Liability 540200 - - 9,400 9,400
Buildings & Personal Property 540500 - - 195,200 195,200 Taxes and Assessments 540700 337,358 349,557 196,200 207,401 Contingency 540800 2,926,444 2,517,522 550,000 50,000 Other Costs 540900 3,711 6,867 1,948 1,948
Emergency Protective Measure 580200 29,125 4,229 - - Subtotal Maintenance and Operations $ 53,968,821 $ 53,945,404 $ 53,508,491 $ 51,988,111 Fixed Assets
Automotive Equipment 590500 709,476 137,258 1,441,000 1,441,000 Office Furniture 590600 42,847 14,085 12,900 7,900 Office Equipment 590700 4,515 - - -
Other Equipment 590800 2,660,333 2,207,106 3,022,683 3,672,122 Loss on Disposal of Assets 599100 32,779 58,835 - - Subtotal Fixed Assets $ 3,449,950 $ 4,146,146 $ 4,476,583 $ 5,121,022 Transfers Out 595100 $ 14 , 857, 218 $ 9,845,129 $ 3,5 47, 836 $ 9,825,324 Subtotal Transfers Out $ 14,857,218 $ 9,845,129 $ 3,547,836 $ 9,825,324 TOTAL APPROPRIATIONS - ALL FUNDS $ 204,346,236 $ 214,241,602 $ 205,981,659 $ 221,291,977

55City of Costa Mesa, California
suMMarIes of
fInancIal data
35 Summary of Appropriations by Account – General Fund (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Salaries and Benefits
Salaries and Wages $ - $ - $ (4,346,404) $ (4,027,157) Salaries & Wages - - 1,977,205 2,938,589
Regular Salaries - Sworn 26,037,765 27,019,962 29,325,600 30,648,303 Regular Salaries - Non-Sworn 29,170,030 33,227,712 35,588,159 38,375,276 Regular Salaries - Part-Time 5,585,102 5,820,130 4,848,561 4,844,745 Overtime 7,927,468 10,264,009 4,828,573 4,950,573
Accrual Payoff - Excess Max. 545,763 532,524 186,128 186,128 Vacation/Comp. Time Cash Out 509,827 650,019 302,980 302,980 Holiday Allowance 963,606 1,107,008 965,235 965,235
Separation Pay-Off 373,419 429,646 145,376 145,376
Other Compensation 3,913,768 4,177,004 4,312,649 4,775,675 Cafeteria Plan 11,807,771 12,383,220 13,735,999 14,030,013 Medicare 1,148,592 1,279,048 1,067,500 1,321,234
Retirement 35,049,145 38,403,378 40,623,510 42,913,158 Longevity 460,619 996,242 1,192,160 1,192,161
Executive Prof Development 75,341 83 ,987 105 ,786 101 ,030 Auto Allowance 38 ,415 46,707 48,300 48,300
City Contrib - Retiree Medical 1,900,907 1,987,615 2,460,000 2,460,000 Subtotal Salaries and Benefits $ 1 25,507,538 $ 1 38,408,211 $ 1 37,367,317 $ 1 46,171,618 Maintenance and Operations
Stationery an d Offi ce $ 220,515 $ 21 3,749 $ 214,150 $ 191,250 Multi-Media, Promos, Subscrpt. 809,815 759,504 584,389 455,719 Small Tools and Equipment 790,764 259,084 240,151 211,026 Uniforms and Clothing 458,854 596,753 418,250 369,750
Safety and Health 659,605 561,844 658,122 604,931
Maintenance and Construction 482,693 442,011 328,250 328,250 Agriculture 101 ,227 63,378 97 ,000 97 ,000
Electricity - Buildings & Fac. 886,363 916,336 580,020 580,020 Electricity - Power 364,680 324,763 281,800 281,800
Electricity - Street Lights 1,237,221 1,272,173 1,000,000 1,000,000 Gas 64 ,014 77, 786 45 ,400 45 ,400
Water - Domestic 61,352 92,761 76,100 76,100
Water - Parks and Parkways 805,573 1,004,422 859,100 859,100 Waste Disposal 232,704 256,895 261,462 261,702
Janitorial and Housekeeping 585,629 628,738 690,243 690,243 Legal Advertising/Filing Fees 222,392 291,990 311,600 243,600 Advertising and Public Info. 19 ,168 12,263 14, 300 7,4 00 Telephone/Radio/Communications 1,017,966 913,232 810,089 810,089 Business Meetings 95,653 121,904 51,080 54,445
Mileage Reimbursement 1, 735 2, 051 3,300 3,300
Dues and Memberships 203,828 223,035 204,712 200,712
59City of Costa Mesa, California
suMMarIes of
fInancIal dat a
ATTACHMENT 5
36 Summary of Appropriations by Account – General Fund (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Maintenance and Operations (Continued)
Board Member Fees 41,800 42,500 41,300 41,300 Professional Development 658,644 672,985 664,141 476,781 Buildings and Structures 405,414 329,926 276,913 237,163 Landscaping and Sprinklers 3,446,847 3,503,179 3,400,500 3,050,500 Automotive Equipment 2,159 3,603 - -
Office Furniture 11,614 - 2,000 2,000
Office Equipment 80,190 79,252 66,431 56,431 Other Equipment 1,061,746 1,220,810 927,150 605,150 Streets, Alleys and Sidewalks 1,726,929 285,455 371,610 371,610 Employment 20,399 17,092 26,000 16,000
Consulting 2,909,759 2,729,640 2,890,160 3,070,636 Legal 1,944,321 1,4 47,516 2,880,000 1,825,211 Engineering and Architectural 384,122 419,678 547,848 467,848 Financial & Information Svcs. 683,969 531,852 1,078,750 677,971 Medical and Health Inspection 192,811 282,744 228,100 226,100 Public Safety 2,818,556 3,001,614 3,202,920 3,156,320 Recreation 372,935 408,496 504,220 496,020
Sanitation 960 1,040 1,200 1,200
Principal Payments 2,486,391 2,607,704 3,450,000 3,550,000 Interest Payments 941,676 880,601 1,067,905 1,067,905 External Rent 805,389 669,327 965,742 993,909 Grants, Loans and Subsidies 1,304,743 1,308,543 1,287,994 1,267,994 Internal Rent Central Services 66,875 65,936 99,722 99,722 Internal Rent Postage 151,305 121,240 110,792 110,792 Internal Rent - Maintenance 884,300 884,300 884,300 884,300 Internal Rent - Repl Cost 4,384,659 4,514,439 4,514,439 4,514,439 Internal Rent - Fuel 573,094 501,777 501,400 501,400 Internal Rent Genl Liability 2,069,259 2,069,259 2,389,209 2,897,902 Internal Rent Workers’ Comp 2,910,749 2,896,619 2,938,441 2,938,441 Internal Rent Unemployment 79,264 79,099 79,687 79,687 Taxes and Assessments 211,642 252,158 96,200 107,401 Contingency 457,722 214,679 500,000 -
Other Costs 3,588 6,692 1,600 1,600
Emergency Protective Measure 29,125 - - -
Subtotal Maintenance and Operations $ 43,444,708 $ 41,084,423 $ 43,726,192 $ 41,165,570

60 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
37 Summary of Appropriations by Account – General Fund (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Fixed Assets
Land - 1,478,861 - -
Automotive Equipment 33,187 - - -
Office Furniture 42,847 14,085 12,900 7,900
Office Equipment 4,515 - - -
Other Equipment 1,676,877 2,146,728 2,951,363 2,796,163 Subtotal Fixed Assets $ 1,757,426 $ 3,639,674 $ 2,964,263 $ 2,804,063 Transfers Out
Operating Transfers Out $ 12,432,270 $ 6,918,994 $ 2 ,797, 836 $ 9,825,324 Subtotal Transfers Out $ 12,432,270 $ 6,918,994 $ 2,797,836 $ 9,825,324

TOTAL APPROPRIATIONS - GENERAL FUND $ 183,141,942 $ 190,051,302 $ 186,855,608 $ 199,966,575

61City of Costa Mesa, California
suMMarIes of
fInancIal data
38 Summary of Appropriations by Department/by Category – All Funds (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
City Council
Salaries a nd B enefits $ 5 72,515 $ 6 03,902 $ 7 90,962 $ 8 05,653 Maintenance and Operations 1 78,062 193,616 1 61,181 161,181 Fixed Assets - - 2 ,000 2,000
Subtotal City Council $ 7 50,577 $ 7 97,518 $ 954,143 $ 968,834 City Manager’s Office
Salaries a nd B enefits $ 9 ,010,354 $ 1 0,677,599 $ 10 ,096,234 $ 1 0,987,159 Maintenance and Operations 7,488,942 8 ,025,001 4,912,360 5 ,399,603 Fixed Assets 10 0,887 14,054 1 6,900 8 ,900
Subtotal City Manager’s Office $ 16,600,184 $ 18,716,655 $ 15,025,494 $ 16,395,662 City Attorney
Maintenance and Operations 9 77,061 1,107,716 1,123,700 1 ,157,411 Subtotal City Attorney $ 977,061 $ 1 ,107,716 $ 1,123,700 $ 1,157,411 Finance
Salaries a nd B enefits $ 3 ,578,893 $ 4, 440,258 $ 4 ,985,873 $ 5 ,168,834 Maintenance and Operations 7 98,210 6 03,605 1,273,330 852,551 Fixed Assets 3 9,480 1 7,094 7 87,300 3 7,300
Subtotal Finance $ 4,416,583 $ 5,060,956 $ 7,046,503 $ 6,058,685 Parks and Community Services
Salaries a nd B enefits $ 7 ,058,462 $ 7, 927, 8 41 $ 6 ,594,381 $ 7, 087, 395 Maintenance and Operations 3 ,340,631 3 ,182,807 3 ,267,4 45 3 ,215,358 Fixed Assets 1 6,647 2,350 3 ,800 3,800
Subtotal Parks and Community Services $ 10,415,740 $ 11,112,999 $ 9,865,626 $ 10,306,553 Information Technology
Salaries a nd B enefits $ 4 ,141,132 $ 4 ,879,652 $ 4 ,819,929 $ 5 ,195,161 Maintenance and Operations 85 8,650 791,693 965,396 5 14,570 Fixed Assets 1,370,904 1 ,040,493 1,883,227 2 ,271,416 Subtotal Information Technology $ 6 ,370,686 $ 6,711,838 $ 7,668,552 $ 7,981,147 Police Department
Salaries a nd B enefits $ 5 6,060,741 $ 6 0,479,457 $ 5 6,296,322 $ 6 3,430,864 Maintenance and Operations 6,825,972 6,616,157 6 ,661,265 5 ,814,025 Fixed Assets 1 ,088,630 1,101,589 993,216 1 ,238,016 Subtotal Police Department $ 63,975,342 $ 68,197,203 $ 63,950,803 $ 70,482,905 Fire and Rescue Department
Salaries a nd B enefits $ 2 9,489,641 $ 3 3,418,841 $ 3 2,985,288 $ 3 3,700,551 Maintenance and Operations 5 ,644,516 5 ,722,116 5,885,188 5 ,688,188 Fixed Assets 2 5,478 26 ,379 32,990 3 2,990
Subtotal Fire and Rescue Department $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 39,421,729 52 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
ATTACHMENT 6
39 Summary of Appropriations by Department/by Category – All Funds (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Development Services
Salaries and Benefits $ 8,452,749 $ 8,915,953 $ 9,454,779 $ 10,184,644 Maintenance and Operations 2,113,323 2,253,568 2,000,455 2,183,180 Fixed Assets 83,403 11,882 28,250 54,500
Subtotal Development Services $ 10,649,476 $ 11,181,403 $ 11,483,484 $ 12,422,324

Public Works
Salaries and Benefits $ 11,74 4,853 $ 12,913,806 $ 13,565,636 $ 16,003,689 Maintenance and Operations 16,673,276 17,342,748 16,120,329 15,901,129 Fixed Assets 724,521 204,075 1,478,900 1,472,100 Subtotal Public Works $ 29,142,649 $ 30,460,629 $ 31,164,865 $ 33,376,918

Non-Departmental
Salaries and Benefits $ - $ 2 ,0 47,615 $ 4,859,345 $ 1,793,572 Maintenance and Operations 9,070,177 8,106,376 11,565,032 10,673,725 Fixed Assets 14,857,218 11,573,359 2,797,836 9,825,324 Subtotal Non-Departmental $ 23,927,395 $ 21,727,351 $ 19,222,213 $ 22,292,621

TOTAL APPROPRIATIONS - ALL FUNDS

Salaries and Benefits $ 132,070,247 $ 146,304,923 $ 144,448,7 49 $ 154,357,520 Maintenance and Operations $ 53,968,821 53,945,404 53,508,491 51,988,111 Fixed Assets $ 18,307,168 13,991,275 8,024,419 14,946,346

TOTAL APPROPRIATIONS - ALL FUNDS $ 204,346,236 $ 214,241,602 $ 205,981,659 $ 221,291,977 53City of Costa Mesa, California
suMMarIes of
fInancIal data
40 Summary of Appropriations by Department/by Category – General Fund (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
City Council
Salaries a nd B enefits $ 5 72,515 $ 6 03,902 $ 7 90,962 $ 8 05,653 Maintenance and Operations 1 78,062 193,616 1 61,181 161,181 Fixed Assets - - 2 ,000 2,000
Subtotal City Council $ 7 50,577 $ 7 97,518 $ 954,143 $ 968,834 City Manager’s Office
Salaries a nd B enefits $ 6 ,353,178 $ 7, 395 ,113 $ 7, 4 67,570 $ 8 ,313,839 Maintenance and Operations 2,512,292 2,491,136 2,128,759 2 ,107,309 Fixed Assets 3 7,286 14,054 1 6,900 8 ,900
Subtotal City Manager’s Office $ 8,902,755 $ 9,900,304 $ 9 ,613,229 $ 10,430,048 City Attorney
Maintenance and Operations $ 9 7 7,061 $ 1 ,107,716 $ 1 ,123,700 $ 1 ,157, 411 Subtotal City Attorney $ 977,061 $ 1 ,107,716 $ 1,123,700 $ 1,157,411 Finance
Salaries a nd B enefits $ 3 ,578,893 $ 4 ,436,730 $ 4 ,985,873 $ 5 ,043,527 Maintenance and Operations 7 98,210 6 03,605 1,273,330 852,551 Fixed Assets 3 9,480 1 7,094 37,300 3 7,300
Subtotal Finance $ 4,416,583 $ 5,057,429 $ 6,296,503 $ 5,933,378 Parks and Community Services
Salaries a nd B enefits $ 6 ,883,249 $ 7, 74 4 ,619 $ 6 ,414,691 $ 7 ,057,245 Maintenance and Operations 2,860,191 2 ,663,849 2 ,683,340 2,656,503 Fixed Assets 9,911 - 3 ,800 3,800
Subtotal Parks and Community Services $ 9,753,352 $ 10,408,468 $ 9 ,101,831 $ 9,717,548 Information Technology
Salaries a nd B enefits $ 3 , 807, 287 $ 4 ,197,303 $ 4 ,126,819 $ 4, 424,523 Maintenance and Operations 528,121 791,693 5 60,670 4 14,570 Fixed Assets 1 ,232,559 1 ,040,493 1,883,227 1 ,786,227 Subtotal Information Technology $ 5,567,967 $ 6,029,490 $ 6,570,716 $ 6 ,625,320 Police Department
Salaries a nd B enefits $ 5 5,153,482 $ 5 9,383,960 $ 5 5,642,498 $ 6 2,792,930 Maintenance and Operations 6 ,527,658 6 ,272,190 6 ,226,075 6 ,233,215 Fixed Assets 324,768 1,046,592 9 51,896 896,696
Subtotal Police Department $ 62,005,909 $ 66,702,742 $ 62,820,469 $ 6 9,922,841 57City of Costa Mesa, California
suMMarIes of
fInancIal da ta
ATTACHMENT 7
41 Summary of Appropriations by Department/by Category – General Fund (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Fire and Rescue Department
Salaries a nd B enefits $ 2 9,489,641 $ 3 3,418,841 $ 3 2,985,288 $ 3 3,700,551 Maintenance and Operations 5 ,644,516 5 ,722,116 5,885,188 5 ,688,188 Fixed Assets 2 5,478 26 ,379 32,990 3 2,990
Subtotal Fire and Rescue Department $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 39,421,729 Development Services
Salaries a nd B enefits $ 7, 8 41,123 $ 8 ,415,086 $ 8 ,606,799 $ 9 ,598,845 Maintenance and Operations 1 ,158,259 1 ,144,404 1 ,060,686 1,024,686 Fixed Assets 8 3,403 1 1,882 28,250 2 8,250
Subtotal Development Services $ 9,082,786 $ 9,571,371 $ 9,695,735 $ 10,651,781 Public Works
Salaries a nd B enefits $ 9 , 867, 265 $ 10 ,765,043 $ 1 1,487 ,472 $ 1 2,640,934 Maintenance and Operations 13,230,159 12,044,721 11,058,231 1 0,196,231 Fixed Assets 4 ,540 4 ,320 7,900 7, 900
Subtotal Public Works $ 2 3,101,963 $ 2 2,814,083 $ 22,553,603 $ 22,845,065 Non-Departmental
Salaries a nd B enefits $ 1 ,960,907 $ 2 ,0 47,615 $ 4 ,859,345 $ 1 ,793,572 Maintenance and Operations 9 ,030,177 8 ,049,376 11,565,032 10,673,725 Fixed Assets - 1 ,478,861 - -
Transfers Out 12,432,270 6 ,918,994 2,797,836 9, 825,324 Subtotal Non-Departmental $ 23,423,354 $ 18,494,847 $ 19,222,213 $ 22,292,621

TOTAL APPROPRIATIONS - GENERAL FUND
Salaries a nd B enefits $ 1 25,507,538 $ 1 38,408,211 $ 1 37, 367, 317 $ 1 46,171,618 Maintenance and Operations 4 3,444,708 4 1,084,423 43,726,192 41,165,570 Fixed Assets 1 ,757,426 3,639,674 2,964,263 2, 804,063 Transfers Out 12,432,270 6 ,918,994 2,797,836 9, 825,324 TOTAL APPROPRIATIONS - GENERAL FUND $ 183,141,942 $ 190,051,302 $ 186,855,608 $ 199,966,575 58 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
42 2026 - 2027

FOR THE

FISCAL YEAR

PROPOSED

OPERATING &

CAPITAL

IMPROVEMENT
BUDGET
43 44

CITY OF COSTA MESA,

CALIFORNIA
Proposed Operating and
Capital Improvement Budget
FISCAL YEAR 2026-2027
Prepared By the Finance Department
Cecilia Gallardo-Daly
City Manager
45 TABLE OF

CONTENTS

BUDGET MESSAGE

GENERAL INFORMATION
10 O rganization Chart
11 H istory of Costa Mesa
12 M iscellaneous Statistics
13 B udget Guide
14 B udget Process
16 F inancial and Budget Policies

SUMMARIES OF FINANCIAL DATA
24 B udget Overview
32 A ll Funds Revenues and Sources of Funds
37 G eneral Fund Revenues and Sources of Funds
Revenue Summaries – All Funds
41 S ales and Use Tax
42 P roperty Tax
43 T ransient Occupancy Tax
44 F ranchise Fees
45 B usiness License
46 L icenses and Permits
47 F ines and Forfeitures
48 U se of Money and Property
49 F ees and Charges for Services
50 S chedule of Interfund Transfers
Appropriations Summaries – All Funds
51 T otal Appropriations (Including Transfers) – Graphs 52 S ummary of Appropriations by Department/by Category – All Funds 54 S ummary of Appropriations by Account – All Funds
City of Costa Mesa, California
46 TABLE OF

CONTENTS
Appropriations Summaries – General Fund
56 T otal General Fund Appropriations (including Transfers) Graphs 57 S ummary of Appropriations by Department/by Category – General Fund 59 S ummary of Appropriations by Department by Account – General Fund 62 F our-Year Personnel Summary by Department
Departmental Budget Details
69 C ity Council
75 City Manager’s Office
95 City Attorney’s Office
101 F inance Department
115 P arks and Community Services Department
133 I nformation Technology Department
143 Po lice Department
159 F ire and Rescue Department
173 E conomic & Development Services Department
193 Pu blic Works Department
217 Non -Departmental

CAPITAL IMPROVEMENT PROGRAM
238 C apital Improvement Program Overview

COSTA MESA HOUSING AUTHORITY
320 C osta Mesa Housing Authority Overview
322 T otal Resources and Appropriations

APPENDIX
327 D escription of Funds & Fund Types
332 G lossary of Budget Terms
337 A cronyms
340 C omputation of Legal Debt Margin
341 A ssessed Valuation Last 10 Fiscal Years
342 D escription of City’s Current Debt Obligations
343 S chedule of Debt Service Requirements to Maturity
City of Costa Mesa, California
47 This Page Intentionally
Left Blank

City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
48 Budget Message
BUDGET

MESSAGE
49 This Page Intentionally
Left Blank

City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
50 California Society of Municipal
Finance Officers
Certificate of Award

Operating Budget Excellence Award
Fiscal Year 2025-2026
Presented to the
City of Costa Mesa
For meeting the criteria established to achieve a CSMFO Award in Budgeting.

February 5, 2026

Jennifer Wakeman James Russell-Field, Chair
2025 CSMFO President Recognition Committee
Dedicated to Excellence in Municipal Financial Reporting 3City of Costa Mesa, California
Budget
Message
51 PRESENTED TO
City of Costa Mesa
California
For the Fiscal Year Beginning
July 01, 2025
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
Proposed Budget for
Fiscal Year 2026-2027
4 City of Costa Mesa, California 52
Finance Department
City of Costa Mesa, California
1/12/2026
The Government Finance Officers Association
of the United States and Canada
The Certificate of Recognition for Budget Preparation is presented by the Government Finance Officers Association to those individuals who have been instrumental in their government unit achieving a Distinguished Budget Presentation Award. The Distinguished Budget Presentation Award, which is the highest award in governmental budgeting, is presented to those government units whose budgets are judged to adhere to program standards.
presents this

CERTIFICATE OF RECOGNITION FOR BUDGET PREPARATION
to
Date:

Executive Director
5City of Costa Mesa, California
Budget
Message
53 This Page Intentionally
Left Blank

City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
54 General Information

GENERAL

INFORMATION
55 56

CITY LEADERSHIP

CITY COUNCIL

CITY OFFICIALS
City Manager
City Attorney
Finance Director
Director of Parks and Community Services
Director of Information Technology
Chief of Police
Acting Fire Chief
Director of Economic & Development Services
Director of Public Works
Cecilia Gallardo-Daly
Kimberly Barlow
Vacant
Brian Gruner
Steve Ely
Joyce LaPointe
Jason Pyle
Carrie Tai
Raja Sethuraman

MANUEL CHAVEZ

MAYOR PRO TEM
DISTRICT 4

MIKE BULEY

COUNCIL MEMBER
DISTRICT 1

LOREN GAMEROS

COUNCIL MEMBER
DISTRICT 2

ARLIS REYNOLDS

COUNCIL MEMBER
DISTRICT 5

JOHN STEPHENS
MAYOR

ANDREA MARR

COUNCIL MEMBER
DISTRICT 3

JEFF PETTIS

COUNCIL MEMBER
DISTRICT 6
9City of Costa Mesa, California
general
InforMatIon
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/41/39/48 /32 /i255/41/44/45 /34 /66
/41/33/36 /38 /48 /39 /48 /42 /45 /36 /48 /i255 /49 /45 /34 /59 /39 /43 /45 /38 /57 /33/46/45/44 /45 /38 /38 /36 /45 /38 /38 /i255 /49 /45 /34 /59 /39 /43 /45 /38 /57 /42/46/31/36 /i255 /65 /45 /38 /33 /42 /34 /43 /45 /38 /65 /39 /38 /66 /i255/30/31/36 /31 /53 /45/46/45/36 /48 10 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
58 History of Costa Mesa
Located on the “coastal tableland” above Newport Bay, Costa Mesa was once grazing grounds for cattle belonging to the Mission San Juan Capistrano. At the beginning of the 19th Century, missionaries built an adobe way station or “estancia” for the vaqueros who tended the herds. This structure still stands at 1900 Adams Avenue and was restored and transformed by the City into a museum. In 1810, this same area was a part of the Spanish land grant of Santiago del Santa Ana made to Jose Antonio Yorba. By 1880, settlers had begun buying portions of the rancho from Yorba’s heirs and in the same decade established the town of Fairview. A schoolhouse and church were built near the present intersection of Harbor and Adams, and a 25-room hotel accommodated visitors to the nearby hot sulfur s prings. B ut i n e arly 1 889, a s torm w ashed o ut t he r ailroad a nd b rought fi nancial d isaster t o t he c ommunity which soon reverted to farming country.

By this time, the little town of Harper, named after a nearby rancher, had emerged alongside the Santa Ana and Newport R ailroad. I ts fi rst b usiness, O zment’s G eneral S tore, s tood o n t he c orner o f N ewport a nd 1 8th S treet a nd contained t he C ity’s fi rst p ost offi ce, e stablished i n 1 909. O n M ay 1 1, 1 920, H arper offi cially c hanged i ts n ame t o Costa Mesa, which means “coastal tableland” in Spanish and continued as an agricultural community, growing sweet potatoes, corn, tomatoes, strawberries, and apples.

Building and oil drilling industries were just beginning to bring new growth to the City when the Depression hit Southern California. Industries collapsed and the local bank closed. More disaster followed when the 1933 earthquake shook the town, damaging businesses and the main school. Soon after, the school was rebuilt and continued to operate as the Clara McNally School. These buildings are now used for school administrative and service purposes.

World War II brought many thousands of people to the area for training at the Santa Ana Army Air Base, located on what is now the Orange County Fairgrounds, Orange Coast College, and the present site of the Civic Center. When the war ended, many of these men returned with their families to begin a population boom in the City.

On June 29, 1953, the City was incorporated and a City Council-Manager form of government was chosen. The new City had an area of 3.5 square miles and a population of 16,840. The City currently has an area of 16.8 square miles and the population has increased to 109,423 as of July 2025.

Today, Costa Mesa is a major commercial and industrial center of Orange County. The City, which formally adopted the slogan “The City of the Arts” in late 1984, is home to the Orange County Performing Arts Center and the Tony Award-winning South Coast Repertory Theater. The Center includes a 3,000-seat facility, which was completed in 1985. In September 2006, the 2,000-seat Henry and Renee Segerstrom Concert Hall and 500-seat Samueli Theater o pened w ith g reat s uccess. T he C oncert H all i s t he n ew h ome t o O range C ounty’s P acific S ymphony a nd Pacific Chorale.

Costa Mesa also offers world-class shopping and dining experiences in and around South Coast Plaza. Home to large corner stores like Nordstroms, Macy’s, Saks Fifth Avenue, and Bloomingdale’s, South Coast Plaza also offers smaller specialized stores like Tiffany & Co., Sugarfina, Kate Spade, and Coach. The South Coast Plaza area also offers a variety of fine dining that includes Din Tai Fung, Vaca, AnQi Bistro, The Capital Grille, and Water Grill.

This history has made and continues to make the City of Costa Mesa a destination for all experiences. 11City of Costa Mesa, California
general
InforMatIon
59 Miscellaneous Statistics

GENERAL
Date of Incorporation June 29, 1953
Form of Government Council-Manager
Classification General Law
Area (in square miles) 16.8
Population 109,423
Acres Zoned for Industry 1,026
Acres of Open Space 1,039
Post Offices 2

Miscellaneous Statistics

FIRE PROTECTION
Number of Fire Stations 6
Number of Sworn Fire Fighters 86
Fire Insurance Rating Class 2

POLICE PROTECTION
Number of S worn P olice O fficers 142

STREETS, PARKS and SANITATION
Miles of Streets (in lane miles) 522
Miles of Alleys 15
Trees, Street 25,000
Park Sites 30
Skate Park 1
18-hole Public Golf Courses 2
Miles of Storm Drains 45.5
Miles of Sewers 325.7
Sanitation Pumping Stations Education Facilities 20

EDUCATION FACILITIES
Elementary Schools 14
Junior High Schools 2
High Schools 4
2-year Community College 1
Private Schools 17
Public Libraries 2
12 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
60 Budget Guide
The p urpose o f the C ity o f Costa M esa’s b udget i s to s erve a s a b lueprint f or p roviding C ity s ervices a nd a s a working fi nancial p lan f or t he fi scal y ear. I t also r epresents t he offi cial o rganizational p lan b y which C ity p olicies, priorities, a nd p rograms a re i mplemented. I t provides t he m eans t o communicate t o the r esidents, b usinesses, a nd employees h ow t he C ity’s fi nancial s ources a re u sed t o provide s ervices t o the c ommunity. T he b udget i ncludes both t he o perating c osts t o manage t he C ity a nd t he c apital i mprovement p rojects t hat t he C ity p lans t o undertake during the fiscal year.

The b udget i s organized b y fund, d epartment, d ivision, p rogram, a nd b y account. A fund i s defined a s a fi scal accounting e ntity w ith a self-balancing s et o f accounts r ecording c ash a nd o ther fi nancial r esources, t ogether with a ll r elated l iabilities a nd b alances, w hich a re s egregated f or t he p urpose o f carrying o n specific a ctivities in accordance w ith s pecial r egulations, r estrictions, o r limitations. A department ( e.g., P olice D epartment) i s an organizational u nit w ith d ivisions ( e.g., P olice S upport S ervices) a nd w ithin e ach d ivision i s a s pecific p rogram (e.g., C rime I nvestigation). L ine a ccounts p rovide t he d etails o f the t ype o f expenditure t hat e ach d epartment/ division/program spends e.g., salaries, benefits, supplies, and so forth.

Budget Preparation Overview
Budget Message: This s ection i ncludes t he C ity M anager’s t ransmittal l etter t o the C ity C ouncil a nd d escribes what i s in t he b udget, i ncluding b udget i ssues a nd p olicies t hat l ead t o the d evelopment o f the b udget. I t also includes the City Council’s Goals which direct the budget development process.

General Information:

This s ection i ncludes t he o rganizational c hart, c ity l eadership, t he c ommunity p rofile, t he budget g uide, b udget p rocess, fi nancial a nd b udget p olicies, a s w ell a s t he d escription o f each f und. T he f unds are l isted b y fund t ype: G overnmental F unds ( including t he G eneral F und, S pecial R evenue F unds, C apital P rojects Funds, and Debt Service Funds), and Proprietary Funds (which include the Internal Service Funds).

Summaries of Financial Data:

T his s ection p rovides a budget o verview, a variety o f financial a nalyses, s uch as the p ie c harts o f resources a nd a ppropriations, m ulti-year b udget c omparisons, r evenue d etails/narratives w ith historical trends, and a summary of personnel changes by department.

Departmental Budget Details: This s ection d ivides t he b udget b y department. I t starts w ith t he C ity C ouncil.

The r eader w ill fi nd a narrative o f the d epartment d escribing e ach d ivision, a n organizational c hart, p rogram accomplishments and goals, and performance measures/workload indicators. This section also provides the financial d ata o f each d epartment w hich i nclude m ulti-year c omparisons o f expenditures s orted i n several w ays:
by funding s ource, b y division, p rogram, a nd e xpenditure c ategory. T he l ast d epartment i s the N on-Departmental which i s not a n actual d epartment, i t is m erely a cost c enter t o house e xpenditures s uch a s debt s ervice p ayments and transfers outs, which are not attributed to a specific department.

Capital Improvement Program: This s ection p rovides fi nancial s tatus o f the o ngoing c apital i mprovement p rojects, a summary o f the c apital i mprovement p rojects p lanned f or t he y ear b y category a nd b y funding s ource, a nd project d etail f orms t hat i nclude t heir d escriptions, f unding s ources, a nd t he e stimated c ost o f each p roject. T his section also includes a five-year capital improvement project schedule.

Appendix: T his i s the fi nal s ection o f the b udget b ook w hich i ncludes a brief h istory o f the C ity, m iscellaneous statistics ( such a s date o f incorporation, f orm o f government, p opulation, e tc.), c ommunity p rofile ( provides demographics i nformation, a mong o ther t hings), a glossary o f budget t erms, a listing o f acronyms u sed t hroughout the b udget d ocument, v arious s tatistical d ata a bout t he C ity’s d ebt o bligations, a nd a per c apita e xpenditure comparison with other jurisdictions contiguous to Costa Mesa. 13City of Costa Mesa, California
general
InforMatIon
61 Budget Process
Operating Budget
Each year, the Finance Department coordinates the preparation of the following fiscal year’s budget. The information contained in the budget i s the end product of a thorough financial review performed t hrough t he combined e fforts of City staff.

The C ity’s b udget p rocess b egins i n December w ith a kick-off m eeting w ith a ll d epartments. T he C ity M anager o utlines t he g oals a nd directives f or t he d evelopment o f the c oming y ear’s b udget. T he F inance D epartment d istributes t he b udget c alendar, i nstructions, forms, a nd b udget a nalysis t o the d epartments. T he M aintenance S ervices s taff c oordinates t he d epartmental b uilding m odification and vehicle replacement requests, while the Public Works Department the capital improvement project requests.

Each d epartment i s responsible f or d eveloping t heir o wn b udget. A fter t he d epartments h ave s ubmitted t heir b udget r equests, t he Finance Department reviews each request, analyzes all supporting documentation, and compiles the data. The budget team then calculates the total amount requested including estimated revenues and projected fund balances.

The City Manager and Finance Department hold departmental budget meetings to discuss each department’s requests and obtains additional i nformation, i f necessary. F ollowing t hese m eetings, l ine i tem r equests a re a djusted i n accordance w ith t he C ity M anager’s funding decisions. This budget-making process takes place from February through May.

Once t he b udget i s adopted b y City C ouncil, t he C ity s taff i ncorporates t he b udgetary d ata i nto the C ity’s fi nancial s ystem. S taff then issues the adopted budget document and submits it for both the national and the state budget awards program. On an ongoing basis, t he F inance D epartment m onitors b udget p erformance u sing m onth-end r eports, w hich a re a vailable t o the d epartments throughout the year.

Capital Budget
The City maintains a rolling five-year Capital Improvement Program (CIP). In October/November of each year, the Public W orks D epartment s olicits p roposals f rom t he o ther C ity d epartments f or i nclusion i n the c oming y ear’s capital improvement projects budget. Around the same time, the Finance Department provides Public Works the estimated fund balances available for appropriation for CIP. These fund balances usually come from Special Revenue F unds a nd C apital P rojects F unds. B oth t hese f und t ypes a re e armarked f or s pecific u ses. T he G eneral Fund p rovides f unding f or C IP b ased o n the C apital A sset N eeds O rdinance a nd i n t urn, c ash i s then t ransferred to the Capital Improvement Projects Fund, where the projects will reside.

Public Works staff then prepares the capital project detail forms, which provide detailed information about the proposed c apital p roject. T ypically, a project c osting $ 30,000 or more ( with s ome e xceptions d epending o n the t ype of project) i s categorized a s a c apital i mprovement p roject. O thers, c osting l ess, c ould b e included i n consolidated Building Modification projects. These are routine maintenance and/or repairs of City buildings and facilities.

During the departmental budget meetings, the City Manager and staff review the various proposed projects. After the C ity M anager’s e valuation o f what w ill b e included i n the p roposed b udget, t he C IP i s submitted t o the F iPAC Committee t o review a nd i s presented t o the P lanning C ommission t o determine i f the p rojects c onform t o the General P lan. T he p roposed C IPs r elating t o parks a re a lso s ubmitted t o the P arks & R ecreation C ommission f or comments and recommendations.

The FiPAC Committee presented the proposed CIP on March 11, 2026. The Parks, Arts and Community Services Commission p resented t he p roposed C IP o n M arch 1 2, 2 026. T he C IP w as p resented t o the C ity C ouncil a t the March 31, 2026 study session. The Planning Commission will be presented the proposed CIP on April 27, 2026.

Budget and Funding Accounting
Basis o f Budgeting
The C ity u ses t he m odified a ccrual b asis i n budgeting g overnmental f unds. T his m eans t hat o bligations o f the C ity, including o utstanding p urchase o rders, a re b udgeted a s appropriations a nd r evenues a re r ecognized w hen t hey are b oth measurable and available to fund current expenditures.

The C ity d oes n ot h ave a n enterprise f und. H owever, t he C ity d oes u tilize t he i nternal s ervice f unds f or i ts fl eet services operations, self-insurance program, and information technology replacement program. Under the internal service fu nds, t he b udget i s prepared o n a ful l a ccrual b asis. T his m eans e xpenses a re r ecognized w hen i ncurred and r evenues a re r ecognized w hen d ue t o the C ity. D epreciation e xpense i s not i ncluded i n budgeting f or i nternal service funds but the full purchase price of equipment is included in the budget. 14 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
62 Budget Pre-Kickoff
Meeting
(DEC 2025)
Finance Analyzes Data
and Sends to Dept
(JAN 2026)
Departments Prepare
Prelim Budget info
(JAN 2026)
Finance Department
Reviews Prelim Budget
(JAN-FEB 2026)
Pre-Budget Meetings-
Dept/Finance
(FEB-APR 2026)
Budget Meetings -
Dept/Finance/CM
(APR 2026)
Budget Team Meets with
City Manager to ﬁnalize
Prelim Budget
(APR 2026)
Council
Adopts Budget
(MAY/JUN 2026)
Finance/IT Upload
Adopted Budget to
Financial System
(JUN 2026)
Finance Prepares
Adopted Budget Book
(JUL 2026)
Finance/Central
Services Prepares
Prelim Budget Book
(MAY 2026)
Prelim Budget Book for
City Manager’s Review
(MAY 2026)
FiPAC Committee
Reviews Proposed
Prelim Budget
(MAY 2026)
Council Study Session
Reviews Proposed
Prelim Budget
(MAY 2026)
Basis o f Accounting
The C ity u ses t he m odified a ccrual b asis o f accounting f or g overnmental f unds. R evenues a re r ecorded w hen m easurable a nd available t o fund c urrent e xpenditures. E xpenditures a re r ecorded w hen t he s ervices a re s ubstantially p erformed o r the g oods have b een r eceived a nd t he l iabilities h ave b een i ncurred. T he C ity’s i nternal s ervice f unds u se t he f ull a ccrual b asis o f accounting; revenues are recorded when earned and expenses are recorded when incurred.

Budgetary c ontrol i s maintained a t the d epartment l evel w ithin e ach f und. T he C ity a lso m aintains a n encumbrance a ccounting system b udgetary c ontrol. E stimated p urchase a mounts a re e ncumbered p rior t o the r elease o f purchase o rders t o vendors. A t fiscal year-end, all operating budget appropriations lapse, except for ongoing grant projects.

User Fees & Charges
As part o f the b udget c ycle, t he C ity c onsiders u pdates t o its f ees a nd c harges, u sually, a fter t he b udget i s adopted.

The C ity u ses, t o some e xtent, a cost a llocation m ethod f or a dministrative a nd o verhead c harges a s part o f the calculation. A dministrative c osts a re b ased o n staff s alaries a nd b enefits, w hich a re a llocated o n a p ro-rata basis; o verhead c harges a re f or m aintenance a nd o peration c osts w hich a re a lso a llocated i n the s ame m anner.

Both o f these c harges a re a dded t o the c ost o f personnel w ho a re d irectly i nvolved i n the a ctivity f or w hich a fee is charged, w hich i s determined b y the t ime s pent o n that a ctivity m ultiplied b y the h ourly r ate f or s alaries a nd benefits. The City Council conducts a public hearing before adopting the new fees. 15City of Costa Mesa, California
general
InforMatIon
63 Financial And Budget Policies
Introduction
The C ity o f Costa M esa’s l argest fi nancial r esponsibility t o its r esidents i s the c are o f public f unds. F inancial a nd budget p olicies a re d eveloped b y the F inance D epartment a nd C ity M anager i n order t o establish t he f ramework f or the o verall b udget p lanning a nd fi nancial m anagement f or the C ity o f Costa M esa. T hese p olicies s hall p eriodically be reviewed b y the C ity’s F inance a nd P ension A dvisory C ommittee ( FiPAC) a nd a dopted b y the C ity C ouncil.

These p olicies w ill h elp C ity offi cials p lan fi scal s trategy u sing a consistent a pproach c ontributing t o the C ity’s fiscal stability and will provide adequate funding of the services desired by the public.

The C ity M anager w ill p ropose a budget w ithin a reasonable a mount o f time f or t he C ity C ouncil a nd p ublic to review a nd d iscuss i t before a doption. A s per t he C ity’s M unicipal C ode, C ity C ouncil s hall a dopt t he a nnual budget by June 30th of each y ear.

Revenues
Revenues and Grants
The C ity w ill s eek t o maintain a diversified a nd s table r evenue b ase t o protect t he C ity f rom s hort-term fl uctuations in any o ne r evenue s ource. O ngoing r evenues w ill b e projected u sing r ealistic a ssumptions. R evenue f orecasts will b e neither o verly o ptimistic n or o verly c onservative. T hey w ill b e as r ealistic a s possible b ased o n the b est available i nformation. S hould e conomic d ownturns d evelop w hich c ould r esult i n revenue s hortfalls o r fewer available resources, the City will make adjustments in anticipated expenditures to compensate.

One-time r evenues s hall b e limited f or u se o n non-recurring i tems w hich i nclude s tart-up costs, r eserve s tabilization, capital expenses, and early debt retirement.

Fees and Charges for Services
User f ees w ill b e imposed t o cover t he c ost o f services p rovided f or u nique o r narrow s egments o f the c ommunity.

Fees w ill n ormally b e set a t full c ost r ecovery. F ull c ost r ecovery i ncludes d irect a nd i ndirect c osts, o verhead a nd depreciation f or t he p eriod d uring w hich t he f ee w ill b e in e ffect. F ees m ay b e set a t less t han f ull c ost r ecovery (cost o f service m ay b e subsidized) a s the C ity C ouncil d eems n ecessary. F ees w ill b e reviewed a nd u pdated o n an ongoing b asis t o ensure t hat t hey k eep p ace w ith c hanges i n the c ost-of-living a s well a s changes i n methods or levels of service delivery. Fees that are set by State law shall be implemented in accordance with those laws.

Operating & Capital Budget
Consistency with City Council and City Manager Priorities Base o perating b udget r equests s hall b e consistent w ith t he p riorities a nd o perational p lans s et f orth b y the City Council, City Manager, and the City’s Financial Policies. Department Heads are responsible for using these priorities a nd p lans, a long w ith p rogram o utcome i ndicators, t o evaluate e xisting p rograms a nd r edirect e xisting resources as needed for greater efficiency, to reduce cost, and minimize the requests for additional resources.

Balanced Budget
A balanced b udget m eans t hat o perating r evenues m ust f ully c over o perating e xpenditures, i ncluding d ebt s ervice.

Under t his p olicy, i t is a llowable f or t otal e xpenditures t o exceed r evenues i n a g iven y ear b y the u se o f fund b alance.

However, i n that s ituation, b eginning u nassigned f und b alance c an o nly b e used t o fund c apital i mprovement p lan projects or other o ne-time, n on-recurring e xpenditures. B udgets for f unds outside t he G eneral F und a re b alanced to the funds’ own revenue sources without General Fund subsidy unless previously approved by the City Council.

Salaries and Benefits
The F inance D epartment w ill s et t he r egular s alary a nd e mployee b enefits b ase b udgets b ased o n k nown c hanges in b argaining u nit M OUs, r etirement r ates, a nd o ther e mployee b enefit c osts. T he F Y 2019-20 A dopted B udget added a v acancy f actor f or e ach o f t he f ollowing d epartments: P arks a nd C ommunity S ervices ( 6%), P ublic W orks Department ( 1%) a nd P olice ( 8%). T he F Y 2 026-27 P roposed B udget r ecalculated t he a ttrition f actor t o 2 % a cross all departments and reallocated to Non Departmental in the General Fund.

Maintenance and Operations
16 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
64 Maintenance a nd o perations s hall b e budgeted a t the s ame l evel a s current y ear b udget t o the e xtent t hey a re necessary t o support b asic o perations, C ouncil, a nd C ity M anager’s g oals. B udgeted b ase a mounts m ay b e reduced if an a nalysis o f actual u sage r eveals o ngoing o ver-budgeting p ractices. O ne-time i tems a pplicable o nly t o past years operations may be removed from the base.

Percentage of General Fund Budget for Capital Expenditures The C ity s hall a llocate a minimum o f five p ercent ( 5%) o f annual G eneral F und r evenue t o the C apital A sset f und.

The C apital f unds a re t o be u sed f or t he c onstruction, d esign, e ngineering, p roject m anagement, i nspection, contract a dministration, a nd p roperty a cquisition o f City-owned o r operated f acilities. C apital a sset f unds m ay also b e applied t oward d ebt o bligations c reated t o fund c apital a ssets w here t he i ndebtedness o riginated a fter October 15, 2020.

For p urposes o f this p olicy, C apital a ssets a re d efined a s fixed a ssets w ith a value g reater t han $ 30,000 that a re stationary i n nature i ncluding, b ut n ot l imited t o, p ublicly o wned o r operated s treets, h ighways, b ridges, s idewalks, curbs, g utters, a lleys, s torm d rains, t rees a nd l andscaping, m edians, p arks, p laygrounds, t raffic s ignals, s treetlights, fences, f acilities, a nd w alls. C apital a ssets a re d efined a s City-owned o r operated b uildings i ncluding, b ut n ot limited t o, C ity H all, C ivic C enter, P olice D epartment, O ld C orp Y ard, N ew C orp Y ard, fi re s tations, l ibraries, a nd community c enters. T hese e xpenditures c an b e budgeted i n either t he G eneral F und o r Capital I mprovements Fund. D uring a n economic d ownturn o r in t he e vent o f a d isaster t hese a llocated f unds c ould b e used a s a t ype of reserve for operations upon approval by a supermajority of the entire City Council (5 votes).

Percentage of General Fund Budget for Information Technology Expenditures The C ity w ill a llocate a minimum o f one a nd o ne-half p ercent ( 1.5%) o f General F und r evenue t o the I nformation Technology R eplacement F und. T he t echnology f unds a re t o be u sed f or h ardware, s oftware, s ervices, s ystems and supporting infrastructure to manage and deliver information.

For p urposes o f this p olicy, I nfrastructure E xpenditures a re d efined a s expenditures o n funding t he i mplementation of the C ity’s I nformation T echnology S trategic P lan, r eplacement, m aintenance, o r improvement o f the C ity’s information t echnology a nd/or for s taffing f or t he i mplementation o f infrastructure n eeds. D uring a n economic downturn o r in t he e vent o f a d isaster t hese a llocated f unds c ould b e used a s a t ype o f reserve f or o perations u pon approval by a supermajority of the entire City Council (5 votes).

Contingencies
A contingency of $500,000 is included in the annual operating budget; which is a reduction of the normal allocation of $ 1.0 m illion. T his a mount a llows t he C ity M anager t o r etain b udget fl exibility f or o perations d uring t he fi scal y ear and will be used in accordance with the City’s financial policies, however in FY 2026-27 the full amount of the City Manager’s contingency was deferred. Legal costs are included here to defend the City in litigation matters that are not assigned or associated with a specific department.

Requests for Budget Increase
All r equests f or b udget i ncreases r equire a n evaluation t hat o utlines t he d epartment’s intended o utcome(s).

Multiple r equests a re r anked i n order o f the d epartment’s priority f or a pproval. D epartment H eads w ill c onfirm t hat all potential alternatives for redirecting existing resources have been examined and that lower priority items have been reduced or eliminated in order to free up existing resources before asking for an increase.

The F inance D epartment a nd t he C ity M anager w ill c onduct a mid-year r eview o f prior y ear b udget i ncreases to determine w hat p rior y ear b udget i ncreases w ill b e funded b ased o n funding a vailability. F unding f or t hese increases will continue if the F inance Department, the City Manager, and the requesting department agree that:
■ They meet the performance expectations
■ They merit continuation
■ They are still relevant to the department’s mission, and ■ Sufficient funding exists.

17City of Costa Mesa, California
general
InforMatIon
65 Five-Year Financial Forecast
The City will forecast its General Fund revenues and expenditures for each of the next five years.

General Expenditure Management
Mid-Year Budget Reviews
The C ity C ouncil w ill f ormally r eview t he b udget t o actual s tatus o f revenues a nd e xpenditures a s soon a s practical and a mend t he b udget, i f necessary. T he m id-year r eview w ill a lso s erve a s an o pportunity f or t he C ity C ouncil to discuss and provide guidance on expectations for the next fiscal year’s budget preparation.

Budgetary Control
The l evel o f budget c ontrol e xists a t the p rogram l evel. A nnual b udgets a re s et a t the i ndividual a ccount l evel however, D epartment H eads w ill b e responsible f or n ot e xceeding t he o verall p rogram b udget. T he F inance Department w ill r eview m onthly b udget t o actual r eports p rovided t o the C ity M anager f or r eview. I t is t he responsibility o f each d epartment t o communicate t o the F inance D epartment w hen p rogram b udgets m ight be exceeded. T his c ommunication i s to b e before t he s ituation o ccurs a nd i nclude t he r eason o r cause f or t he potential situation. At that time, the most appropriate action will be discussed to ensure fiscal balance.

Budget Transfers and Adjustments
Budget transfers are shifts of existing resources between divisions, programs, and accounts. Department Heads are r esponsible f or t he e fficient a nd e ffective u se o f the r esources w ithin t heir d epartmental b udgets a nd a re required t o reallocate e xisting re sources b efore re questing b udget i ncreases. T herefore, t hey a re p ermitted, with t he c oncurrence o f the F inance D epartment, t o make b udget t ransfers o f resources a mong t he a ccounts, programs a nd d ivisions w ithin t heir d epartment. I f a d epartment i s unable t o resolve b udgetary i ssues w ithin t heir department b udget, t he C ity M anager m ay a pprove t he t ransfer o f resources b etween d epartments s taying w ithin the t otal a ppropriations p reviously a uthorized b y the C ity C ouncil. E xceptions t o this fl exibility a re t ransfers o ut of salaries and benefits, which require City Manager or Finance Department approval.

The C ity M anager h as t he a uthority t o transfer m oney t o the a ppropriate i tem, a ccount, p rogram, d epartment, or fund t o cover e xpenditures w hich h ave b een a pproved b y the C ouncil, e xcept w here s uch t ransfer i s expressly prohibited in a resolution or ordinance passed by the Council. The City Manager also has the authority to transfer money between and within funds to meet the operational n eeds of the City within established spending limits.

Budget a djustments a re c hanges t hat a ffect t he t otal a mount o f the C ity b udget. T hese i nclude a ppropriation of new grants or other revenues that had not been approved or realized at the time of the budget adoption. These also i nclude i ncreases o r decreases t o unassigned f und b alance f or i tems a pproved b ut n ot s pent i n previous fiscal y ears (i .e. p urchase o rder r ollovers) o r for u nanticipated, o ne-time i tems t hat c annot b e postponed t o the next budget cycle. Budget adjustments must be approved by the City Council.

Operating Carryover and Surplus
Balances i n operating p rogram a ppropriations a t t he e nd o f t he fiscal y ear m ay b e carried o ver f or s pecific p urposes into the n ext fis cal y ear w ith t he ap proval o f the C ity M anager, an d r eporting t o the C ity C ouncil d uring a quarterly budget update report.

A fiscal y ear-end s urplus m ay o ccur w hen t here i s a n et i ncrease i n fund b alance o r when t here i s a p ositive b udget variance. Such a surplus will b e reviewed for potential use using the following priorities:

1. Increase reserves if reserves are below target.

2. Examine opportunities for prepayment and accelerated payoff of debt.

3. Increase funds for capital facilities.

Arts and Cultural Master Plan Funding
Authorize the City Manager, or her designee, to fund the differential amount in the Arts Cultural Master Plan Fund when a shortfall exists from insufficient Cannabis Measure Q revenues from the General Fund, as necessary.

18 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
66 Accounting
The C ity w ill c omply w ith t he r equirements o f the G overnmental Ac counting S tandards B oard ( GASB) a nd r ecord and maintain its financial transactions based upon Generally Accepted Accounting Principles (GAAP).

Investments
The C ity T reasurer s hall i nvest t he C ity’s i dle f unds i n accordance w ith t he g uidelines e stablished i n the a dopted Investment Policy.

Fund Balance and Reserves
Fund balance consists of nonspendable, restricted, committed, assigned, and unassigned funds.

Nonspendable fund balance includes a mounts t hat c annot b e spent b ecause t hey a re e ither n ot i n spendable f orm (such as inventory) or legally or contractually required to be maintained intact (such as endowments).

Restricted fund balance includes a mounts t hat c an b e spent o nly f or s pecific p urposes s pecified b y constitution, external resource providers, or through enabling legislation.

Committed fund balance i ncludes a mounts t hat c an b e used o nly f or s pecific p urposes d etermined b y formal action o f a C ity o rdinance b y the C ouncil. I t includes l egislation ( Council a ction) t hat c an o nly b e overturned b y new legislation r equiring t he s ame t ype o f voting c onsensus t hat c reated t he o riginal a ction. T herefore, i f Council a ction limiting t he u se o f funds i s separate f rom t he a ction ( legislation) t hat c reated ( enables) t he f unding s ource, t hen it is c ommitted, n ot r estricted. F or t he p urposes o f establishing, m odifying, a nd r escinding a committed f und balance, the City considers an ordinance more binding than a resolution or a minute action by City Council.

Assigned fund balance i ncludes a mounts t hat a re d esignated o r expressed b y the C ouncil, b ut d oes n ot require a formal a ction l ike a resolution o r ordinance. T he C ouncil m ay d elegate t he a bility t o an e mployee or committee t o assign u ses o f specific f unds f or s pecific p urposes. I n June 2 011, t he C ity C ouncil p assed Resolution 1 1-27, d elegating a uthority t o establish, m odify, o r rescind a fund b alance a ssignment t o the F inance Director.

Unassigned fund balance includes the residual balance for the City’s General Fund and includes all spendable amounts not contained in other classifications.

As of J une 3 0, 2 025, c ombined r eserves f und b alance t otals $ 61.0 m illion a s follows. T he f ollowing i nformation is from the City’s audited financial statements for FY 2024-25.

Fund Balance Category
FY 2024-25
Audited
Committed
Declared Disasters $ 1 4,125,000
Self Insurance $ 2 ,000,000
Economic Reserves $ 9 ,000,000
Assigned
Compensated Absences $ 5 ,982,021
Police Retirement Supplemental $ 1 ,572,306
Worker’s Compensation $ 2 ,000,000
Facilities Reserve $ 2 ,000,000
Strategic Plan Projects $ 2 ,000,000
Section 115 Trust $ 2, 092,360
Non-spendable $ 88 3,072
Unassigned $ 1 9,307 ,000
Total $ 60,961,759
Reserve Study and Goals
The fi nancial r isks th at th e C ity f aces, a nd w hich s hould b e accounted f or i n the p rocess o f establishing re serves, include e conomic v olatility, m ajor i nfrastructure f ailure, n atural d isasters, a nd o ther e mergencies. A separate study o f these r isks w as p repared i n 20 20 and is periodically u pdated b y the F inance D epartment t o assess e ach category o f risk a nd r ecommended t o the C ity C ouncil a n adequate a mount o f reserves t hat w ill e nable t he C ity to prepare f or t he i dentified r isks. A t that t ime, C ouncil d etermined t he a ppropriate r eserve l evel w as $ 55 million and c ommitted t o a p lan t o reach t hat g oal a nd t o increase t he r eserve l evel a nnually i n years w here t he G eneral 19City of Costa Mesa, California
general
InforMatIon
67 Fund h ad a surplus. D uring t he m id-year b udget r eport a nd p reparation o f the fi ve-year fi nancial p lan, a ctual r eserve amounts a re c ompared t o recommended a mounts. I f reserves a re b elow t arget, r ecommendations w ill b e made for increasing reserves. The City reached the $55 million goal on June 30, 2016.

Committed for Declared Disasters/Emergency Reserve
The $ 14.1 m illion committed f or d eclared d isasters w as e stablished b y the C ity C ouncil a s an e mergency r eserve.

As set f orth b y Council R esolution 1 1-27 ( June 2 1, 2 011) a nd M unicipal C ode S ections 2 -206 and 2 -207, u se o f this reserve is limited to the following purposes:

1. To provide required emergency funding as a result of a declared emergency.

2. To provide r equired f unding f or a n unanticipated b ut u rgent e vent t hreatening t he p ublic h ealth, s afety, a nd welfare of the City, such as earthquakes, major unanticipated infrastructure failures, and terrorist events.

This r eserve m ay o nly b e utilized b y resolution o f the C ity C ouncil f or t he r easons s tated a bove. T his a mount w ill be shown as a committed fund balance on the City’s Annual Comprehensive Financial Report (ACFR).

Paired w ith t his r eserve i s the p olicy o f a m inimum m onthly c ash b alance ( throughout t he fi scal y ear) i n the G eneral Fund o f at l east $ 14.1 m illion. T his k eeps t he r eserve f unds l iquid r ather t han h aving t hem t ied u p in l onger-term investments. T he a mount p resented o n the m onthly T reasurer’s R eport w ill b e used t o determine t he a ctual e nding monthly cash balance.

Committed for Self-Insurance
The $ 2 million s elf-insurance r eserve i s set b y Resolution 1 1-27 and M unicipal C ode S ection 2 -154. T he C ity w ill maintain a Committed G eneral F und B alance m inimum o f $ 2 m illion t o be u sed t o pay a ctual l osses n ot c overed by other i nsurance p olicies o r insurance p ools. I f used, t his r eserve s hall b e replenished w ith f unds e ach fi scal y ear from the General Fund operating reserve.

Committed for Economic Reserves
During t he r eserve s tudy d iscussed a bove, t he C ity C ouncil a pproved t he e stablishment o f a r eserve t o address possible e conomic i nstability r esulting i n a d ecline i n sales t ax, p roperty t ax, a nd t ransient o ccupancy t ax. A fter the a doption o f the r eserve g oal, t he F inance D epartment c reated t he C ommitted f or Ec onomic R eserve a ccount and has a current balance of $9.0 million.

Other General Fund Reserves
The o ther t hree c ategories o f reserves l isted a bove a re b ased o n specific s tudies o r calculations o f what i s needed for t hose p rograms. T he a mounts a re r efreshed a nnually a nd r ecommended t o continue a s long a s required.

In addition t o these r eserves, t he C ity C ouncil h as d elegated t he a uthority t o determine f und b alance a ssignments to the F inance D irector. T hese a ssignments i nclude: C ompensated A bsences, P olice R etirement 1 % S upplemental, Worker’s C ompensation, F acilities R eserve, S trategic P lan P rojects, a nd a Pension S ection 1 15 Trust. T hese assignments total $19.3 million at June 30, 2025.

Debt Service Fund Reserves
The C ity s hall m aintain r eserves i n the D ebt S ervice F unds a s prescribed b y the b ond c ovenants a dopted a t the time of debt issuance.

Equipment Replacement Fund Reserves
The E quipment R eplacement F und s hall m aintain a dequate r eserves t o provide f unding f or r eplacement o f fleet vehicles and both motorized and non- motorized equipment. 20 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
68 Debt
Debt Issuance
The C ity m ay i ssue l ong-term ( exceeding t welve m onths) d ebt f or c apital p rojects a nd fi xed a ssets. A ll G eneral Fund d ebt i ssuances s hall i dentify t he m ethod o f repayment ( or have a dedicated r evenue s ource). T he t erm o f the debt s hould n ot e xceed t he l ife o f the a sset b eing fi nanced. T he C ity s hall n ot i ssue G eneral F und d ebt t o support ongoing operating costs unless such debt issuance achieves net operating cost savings and such savings are verified by independent analysis.

Unfunded Pension Liability
Should t he C ity’s p ension o bligations i nclude a n unfunded l iability, t he C ity s hall d evelop a plan t o reduce a nd eventually e liminate t he u nfunded l iability. I n addition t o paying t he a nnual r equired c ontribution ( that i ncludes amortization o f the u nfunded p ension l iability), t he C ity w ill a nnually a llocate a minimum o f $ 500,000 annually towards r educing t he u nfunded l iability s tarting w ith t he F ireSide F und. I n addition, i f the C ity p repays a nnual retirement c osts, t he s avings o n any p repayment o ption e xercised w ill b e evaluated b y the F inance D epartment to determine if it could be used to make an additional payment to the FireSide Fund. 21City of Costa Mesa, California
general
InforMatIon
69 This Page Intentionally
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City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
70 Summaries of Financial Data

SUMMARIES OF

FINANCIAL DATA
71 Budget Overview
The F iscal Y ear 2 026-27 B udget r eflects t he o perating a nd c apital s pending p lans f or t he G eneral F und, S pecial Revenue Funds, Capital Project Funds, and Internal Service Funds. The total Proposed budget for all funds is approximately $ 245 m illion, a n i ncrease o f $ 19.9 m illion, o r 9 p ercent c ompared t o t he a dopted b udget f or F iscal Year 2025-26. Table 1 illustrates these amounts.

Table 1 - Proposed Budget - All Funds
Adopted Proposed Increase/(Decrease) FY 2026-27
Expenditure Category FY 2025-26 FY 2026-27 Amount Percent % of Total

Operating Budget $ 2 02,433,823

$ 2 11,466,653

$ 9, 032,830

8 6%
Transfers Out 3,547,836

9,825,324

6 ,277,488

1 77%

4%
Capital Budget 1 8,957,631 2 3,585,595 4,627,964 2 4% 10 % Total $ 2 24,939,290 $ 2 4 4 , 87 7,572 $ 1 9,938,282 9% 10 0% General Fund Budget Overview
The G eneral F und c omprises 8 1.7 percent o f the t otal o perating b udget. T herefore, t he s ucceeding d iscussion w ill focus primarily on the General Fund.

The G eneral F und b udget i s $ 200.0 m illion (i ncluding t ransfers o ut), a n i ncrease o f a pproximately $ 13.1 m illion, o r 7 p ercent c ompared t o the F iscal Y ear 2025-26 adopted b udget. T able 2 below i llustrates t he c omponents a nd t he changes of the budget as compared to the prior year’s budget.

Table 2 - General Fund Operating Budget
Adopted Proposed Increase/(Decrease) FY 2026-27
Expenditure Category FY 2025-26 FY 2026-27 Amount Percent % of Total

Salaries a nd B enefits $ 1 37, 367, 317 $ 1 46,171,618 $ 8 ,804,301 6% 7 3% Maintenance and Operations 4 3,726,192 41,165,570 ( 2,560,622) - 6% 2 1% Fixed Assets 2, 964,263 2, 804,063 ( 160,200) - 5% 1 % Transfers Out 2,797,836 9,825,324 7, 027,488 2 51% 5 % Total $ 1 86,855,608 $ 1 99,966,575 $ 1 3,110,967 7 % 10 0% Salaries And Benefits
Budgeted p ersonnel c osts i ncreased b y $ 8.8 m illion, o r 6 p ercent. T he Proposed B udget i ncludes 5 99 f ull-time employees, a n et d ecrease o f o ne ( 1) F TE i n t he P ark R anger c lassification. T he C ity i s a lso p roposing a reclassification t o t he f ollowing p ositions: E mergency S ervice C oordinator t o a F ire B attalion C hief, C hief o f C ode Enforcement to a Senior Permit Technician, and Public Safety Dispatcher to a Public Safety Dispatcher Supervisor.

These a mended s taffing a djustments a nd s trategic w orkflow a llocation p rovides t he C ity w ith t he a ppropriate classifications t o d eliver s ervice. F urther, a s p art o f t he e fforts t o m aintain a b alanced b udget i n F Y 2 026-27, t he following p ositions a re b eing p roposed t o b e h eld v acant ( hiring f reeze): A ssociate P lanner Ec onomic, P rincipal Planner ( 3 m onths), A ssistant F ire M arshal, P rogrammer A nalyst I I, a nd O ffice P olice R ecords S hift S upervisor.

Additionally, t he f ollowing p ositions t hat w ere f rozen i n t he p rior fi scal y ear w ill r emain f rozen, i ncluding: O ffice Specialist I I ( Parks a nd C ommunity S ervices D epartment), O ffice S pecialist I I ( Economic a nd D evelopment Services Department), C ode Enforcement Officer I I, E ngineering T echnician III, F acilities Maintenance Technician, and Maintenance Supervisor.

Proposed Budget for
Fiscal Year 2026-2027
24 City of Costa Mesa, California 72
Maintenance And Operations
The m aintenance a nd o perations c ategory i ncludes a ccounts s uch a s: offi ce s upplies, offi ce e quipment, e lectricity, gas, a nd w ater f or a ll C ity o wned p roperty i ncluding p arks, m edians, s treet l ights a nd t raffic s ignals, p ark a nd facility maintenance, general liability insurance, the contingency account, and principal and interest payments on outstanding C ity d ebt. T he b udget f or m aintenance a nd o perations i n the G eneral F und i s $ 41.2 m illion, a n et decrease o f $ 2.6 m illion, o r 6 p ercent c ompared t o the F Y 2 025-26 Adopted B udget. T he d ecrease i s attributed to a r equest b y t he C ity M anager f or a o ne-time r eduction i n n on- c ritical s ervices i n t he G eneral F und. T hese reductions will be re-evaluated for consideration to be returned in the next budget cycle. Additional reductions include a r ealignment o f $ 350,000 f or e ligible l andscaping e xpenses t o t he G as T ax F und ( Fund 2 01), e ligible drainage e xpenses o f $ 6 6,000 t o t he D rainage F und ( F und 2 09), a nd $ 220,000 f or t raffic s ignal m aintenance t o Measure M2 (Fund 416).

These reductions are partially offset by targeted General Fund increases across several departments to address critical o perational needs:
■ City A ttorney: I ncrease o f $ 33,711 t o r eflect C onsumer P rice I ndex ( CPI) a djustments i n c ontractual a greements. ■ City Manager’s Office / City Clerk Division: Increase of $250,000 for election expenses in 2026.

Additional departmental information is detailed in each respective department.

Transfers Out
The b udget i ncludes a n operating t ransfer o ut t otaling $ 9.8 m illion f rom t he G eneral F und, t o fund I nformation Technology r eplacement n eeds a nd C apital A sset N eeds ( CAN) O rdinance t o comply w ith t his o rdinance. C ity Council a pproved t o implement 5 % o f General F und r evenues t o be t ransferred t o the C apital I mprovement F und, as required by the Capital Asset Needs (CAN) Ordinance. Ordinance 2020-06, passed by the City Council on March 17, 2 020, t o reallocate 1 .5% o f the a nnual G eneral F und r evenues t o fund t he C ity’s t echnology n eeds. T he 2 026-27 transfers o ut a lso i ncludes a r epayment o f $ 600,737 t o t he C AN a nd $ 116,310 t o t he I T n eeds f rom p rior y ear deferrals.

The t otal Adopted F Y 2 026-27 General F und r evenue i s $ 200.0 m illion, a n i ncrease o f $ 13. 1 m illion o r 7 p ercent compared t o FY 2 025-26 Adopted B udget. T able 3 illustrates t he G eneral F und r evenue s ources e stimates o f e ach revenue source.

Table 3 - General Fund Revenue Estimates
Adopted Proposed Increase/(Decrease) FY 2026-27
Revenue Source FY 2025-26 FY 2026-27 Amount Percent % of Total

Taxes $ 1 59,300,278 $ 1 69,204,186 $ 9 ,903,908 6% 85 % Licenses and Permits 5,700,227 5 ,970,320 2 70,093 5 % 3 % Fines and Forfeitures 1 ,302,091 1,661,991 359,900 2 8% 1 % Use of Money and Property 5 ,108,250 6,141,623 1,033,373 2 0% 3 % Other Governmental Agencies 937,582 1 ,448,853 5 11,271 5 5% 1 % Fees and Charges for Service 13,181,206 1 3,989,555 808,349 6% 7 % Other Revenue 1 ,325,972 1 ,550,047 2 24,075 1 7% 1 % Operating Transfer In - - 10 0% 0%
Total $ 1 86,855,606 $ 1 99,966,575 $ 1 3,110,969 7 % 10 0% Revenues
City management has been working with all Departments to develop a structurally balanced FY 2026-27 General Fund B udget. T able 3 a bove r eflects a n o verall i ncrease o f $ 13.1 m illion o r 7 p ercent i n G eneral F und r evenue compared to the Fiscal Year 2025-26 Adopted Budget.

25City of Costa Mesa, California
suMMarIes of
fInancIal da ta
73 Other Governmental Funds
To gain a better u nderstanding o f the b udget a s a w hole, t he G eneral F und b udget i s compared t o the e ntire b udget covering all governmental funds. Table 4 illustrates this relationship.

Table 4 - Revenue Budget - All Funds by Fund Type
Adopted Proposed Increase/(Decrease) FY 2026-27
Fund Types FY 2025-26 FY 2026-27 Amount Percent % of Total

General Fund $ 1 86,855,606 $ 1 99,966,575 $ 1 3,110,969 7 % 8 9% Special Revenue Funds 15,627,832 14 ,738,494 (889,338) - 6% 7 % Capital Projects Funds 6,111,122 1 1,231,034 5 ,119,912 8 4% 5 % Total $ 2 08,594,560 $ 2 25,936,103 $ 1 7, 3 41,5 4 3 8% 10 0%

*Does not include Internal Services Revenue
Internal Service Funds
The i nternal s ervice f unds a re u sed t o fi nance a nd a ccount f or a ctivities i nvolved i n r endering e quipment 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 as such goods are delivered or services rendered.

The City uses Internal Service Funds to account for the following activities:

Equipment Replacement Fund (601)
This f und a ccounts f or t he a ccumulation o f resources n ecessary t o replace v ehicles o ver a number o f years b ased upon a n established r eplacement s chedule. T his f und a lso a ccounts f or fl eet s ervices p rovided b y the M aintenance Services Division to the user-departments. For FY 2026-27, the budget is approximately $6.0 million.

Under t he I nternal S ervice F unds m ethod o f accounting f or fl eet s ervices, u ser-departments a re c harged m onthly internal r ent. T he r ent c onsists o f the e stimated c ost f or f uture r eplacement o f department v ehicles a nd t he monthly c ost o f maintenance, i ncluding f uel. S taff us es a n inflationary f actor c ompounded a nnually t o determine the e stimated f uture r eplacement c ost d ivided b y the e stimated l ife o f the v ehicles. M aintenance c harges a re based on actual usage of fuel and service, including labor, materials, and overhead costs.

Property Tax
Property Tax
$64,010,902
$64,010,902
Property Tax
$64,010,902
Fines and Forfeitures
Fines and Forfeitures
$1,661,991
$1,661,991
Fines and Forfeitures
$1,661,991
Other Government Agencies
Other Government Agencies
$1,448,853
$1,448,853
Other Government Agencies
$1,448,853
Business License Tax
Business License Tax
$980,741
$980,741
Business License Tax
$980,741
Sales Tax
Sales Tax
$82,541,833
$82,541,833
Sales Tax
$82,541,833
Cannabis Gross Receipts Tax
Cannabis Gross Receipts Tax
$3,664,353
$3,664,353
Cannabis Gross Receipts Tax
$3,664,353
Transient Occupancy Tax
Transient Occupancy Tax
$10,573,611
$10,573,611
Transient Occupancy Tax
$10,573,611
Franchise Fees Tax
Franchise Fees Tax
$7,432,746
$7,432,746
Franchise Fees Tax
$7,432,746
Licenses and Permits
Licenses and Permits
$5,970,320
$5,970,320
Licenses and Permits
$5,970,320
Use of Money & Property
Use of Money & Property
$6,141,623
$6,141,623
Use of Money & Property
$6,141,623
Fees and Charges
Fees and Charges
$13,989,555
$13,989,555
Fees and Charges
$13,989,555
Other Revenues
Other Revenues
$1,550,047
$1,550,047
Other Revenues
$1,550,047
Graph 1 - General Fund Revenue Estimates by Category
Proposed Budget for
Fiscal Year 2026-2027
26 City of Costa Mesa, California 74
Self-Insurance Fund (602)
This fund accounts for the Risk Management Program including workers compensation, general liability, and unemployment i nsurance. T he F Y 2026-27 budget t otals $ 5.9 m illion. T he C ity c urrently c ontracts w ith s eparate vendors for workers compensation and managed care services that historically were handled together. Since the City h as s eparated t he t wo, i t has b een a ble t o take a dvantage o f competitive r ates a nd a dditional c ost s avings on medical expenses.

The u nemployment i nsurance p ortion i s based o n actual p ayments t o the S tate E mployment D evelopment Department ( EDD), w hich p rocesses t he c laims f or u nemployment b enefits o n behalf o f the C ity. T he C ity reimburses the EDD on a quarterly basis. Departments are charged back based on an established formula.

Revenues f or t he S elf-insurance F und c omes f rom i nternal c harges t o the u ser-departments b ased o n historical costs of incurred losses, insurance premiums, and other services provided by the Risk Management Division.

Information Technology Replacement Fund (603)
This f und a ccounts f or t he a ccumulation o f resources n ecessary t o replace h ardware a nd s oftware r elated to information technology. As per Ordinance no. 2025-06, 1.5% of annual General Fund revenues is allocated to the Information T echnology R eplacement F und t o provide f unding f or t he C ity’s i mmediate a nd f uture i nformation technology needs, including those identified in the Information Technology Strategic Plan.

Table 5 - Revenue Budget - Internal Service Funds
Adopted Proposed Increase/(Decrease) FY 2026-27
Fund Types FY 2025-26 FY 2026-27 Amount Percent % of Total

Equipment Replacement Fund $ 5 ,953,599 $ 5 ,953,599 $ - 0% 4 0% Self-Insurance Fund 5,412,265 5,920,958 5 08,693 9% 3 9% IT Replacement Fund 1 ,597,836 3,115,809 1,517,973 95 % 2 1% Total $ 1 2,963,700 $ 1 4,990,366 $ 2 ,026,666 1 6% 10 0% Capital Improvement Projects
The P roposed C apital B udget i s approximately $ 23.6 m illion, a n i ncrease o f $ 4.6 m illion o r 24 % f rom t he a dopted FY 2 025-26 budget. I n reviewing t he C apital I mprovement P rogram b udget, i t is i mportant t o keep i n mind t hat most p rojects a re f unded b y restricted r evenue s ources o r grants. C onsequently, t here w ill p otentially b e significant differences f rom y ear t o year i n both t he n umbers o f projects a dopted a nd t he t otal d ollars b udgeted. P rimary funding sources for capital projects include the Measure M, Gas Tax, Road Maintenance and Rehabilitation Account, Park Development Fees, Traffic Impact Fees, Capital Improvement and Drainage Fees Funds.

Key projects included in the Capital Improvement Budget f or FY 2026-27 are:
■ Citywide Alley Improvements
■ Police Department Chiller Replacement
■ Police Department Emergency Communications Center
■ Citywide Tree Maintenance (in Public Right-of-Way)
■ Harper Park Playground Improvements
■ Costa Mesa Skate Park Expansion
■ Adams Avenue Multipurpose Trail
■ Newport Blvd. Improvement NB (22nd to Bristol) & SB (Bristol to Mesa) ■ Mesa Del Mar Multimodal Access
27City of Costa Mesa, California
suMMarIes of
fInancIal da ta
75 The City’s Five-Year Capital Improvement Program (CIP) is listed at the end of the CIP section of this budget book.

This s ection p rovides c omprehensive, d etailed i nformation o n the c apital p rojects t hat the C ity p lans t o undertake in the coming fiscal year and beyond. It also contains a summary listing of projects by funding source. 28 City of Costa Mesa, California 76
This Page Intentionally
Left Blank

City of Costa Mesa, California
77 Calculation of Projected Fund Balances
for the Fiscal Year Ending June 30, 2027
Fund Description *
(1)
Projected Fund
Balances
7/1/2026
(2)
Estimated
Revenues
FY 2026-27
(3)
Proposed Operating
Expenditures
FY 2026-27

GOVERNMENTAL FUNDS
General Fund 101 $ 57,424,791 $ 199,966,575 $ 199,966,575 Special Revenue Funds
Arts Cultural Master Plan 130 (1) $ ( 132,244) 2 42,200 $ 2 42,200 First Time Homebuyer Program 140 (3) 6 21,812 2 42,200 227,472 Legal Defense Fund 145 20 ,280 - -
Disaster Fund 150 (1) 2 9,462 - -
Gas Tax Fund 201 (3) 1,789,380 3,302,813 2 ,858,513 Air Q uality M anagement D istrict F und ( AQMD) 203 (4) 4 57,532 1 45,800 16,000 American Rescue Plan 204 332,702 - -
HOME Program Fund 205 1 ,438,951 3 80,848 7 30,814 Community Development Block Grant Fund (CDBG) 207 663,000 8 15,535 812,257 Supplemental Law Enforcement Services Fund 213 (1) 13 ,232 3 32,622 334,056 Rental Rehabilitation Program Fund 216 344,536 - - Narcotics Forfeiture Fund 217 837,268 - 300,000
Local Law Enforcement Block Grant Fund 219 3 7,704 - - Office o f T raffic Safety 2 20 1 4,079 - -
Housing Trust Fund 226 60,675 - -
Opioid Settlement Funds 227 1 4,452 - -
Federal Grants Fund 230 (2) 33,258 4 ,745,000 -
State Grants Fund 231 (2) 18 4,683 724,920 353,198 Grants -Other 232 1 4,990 6 50,000 -
RMRA Gas Tax Fund 251 1,644,642 3 ,156,556 -
Subtotal Special Revenue Funds $ 8 ,420,394 $ 14,738,494 $ 5,874,511 Capital Projects Funds
Park Development Fees Fund 208 $ 2 52,421 $ 2 00,000 $ 3 46,805 Drainage Fees Fund 209 268,186 120,000 168,339
Traffic Impact Fees Fund 214 (3) 4 42,497 4 00,000 - Fire System Development Fees Fund 218 366,803 - - Fire Protective System Paramedic Fund 228 334,004 - - Cannabis Traffic Impact Fees 2 40 3 11,383
Capital Improvement Fund 401 3,486,366 6 ,709,516 1 ,128,352 Vehicle Parking District 1 409 (4) 8 2,169 4 ,026 - Vehicle Parking District 2 410 (4) 1 70,298 12 ,285 - Golf Course Improvement Fund 413 (3) 402,130 110,000 5 0,000 Measure “M2” Regional Fund 415 (3) (557,033) - - Measure “M2” Fairshare Fund 416 1,964,164 3 ,675,207 2 20,000 Jack Hammett SC Capital Improvement Fund 417 213,146 - - Lions Park Project 2017 Bond Fund 418 1 4,684 - - Park Land Acquisition 420 4 09,023 - -
Subtotal Capital Projects Funds $ 8,160,241 $ 11,231,034 $ 1,913,496 Total Governmental Funds $ 74,005,426 $ 225,936,103 $ 207,754,581

INTERNAL SERVICE FUNDS
Equipment Replacement Fund 601 $ 4 ,240,959 $ 5 ,953,599 $ 6 ,090,648 Self-Insurance Fund 602 4 52,233 5 ,920,958 5,965,614 IT Replacement Fund 603 2 ,143,832 3 ,115,809 1 ,481,134 Total Internal Service Funds $ 6,837,024 $ 14,990,366 $ 13,537,396 GRAND TOTAL $ 80,842,450 $ 240,926,469 $ 221,291,977 Explanation of negative fund balance:
(1) Negative fund balances are recognized in previous audits and will be corrected over time. (2) A portion of approved grants from prior years are being expended on approved projects/costs. There were approved grant funds approved in previous years on a cost-reimbursement basis so the fund balance will be corrected. (3) Revenues adopted and higher than the expenses.
(4) Revenues are recieved annually, however no expendetures are allocated this Fiscal Year Proposed Budget for
Fiscal Year 2026-2027
30 City of Costa Mesa, California 78
~

(4)
Proposed Capital
Expenditures
FY 2026-27
(5) = (3+4)
Total Proposed
Expenditures
FY 2026-27
(6) = (2-5)
Estimated
Revenues
Over (Under) Budget
(1) + (2) - (5)
Projected Fund
Balances
6/30/2027
%
Incr/
(Dec)

$ - $ 199,966,575 $ $ 57,424,791 0.00%

$ - $ 2 42,200 $ - $ ( 132,244) 0 .00%
- 2 27,472 1 4,728 $ 6 36,540 2. 37%
- - - $ 2 0,280 0 .00%
- - - $ 2 9,462 0 .00%
1,790,000 4 ,648,513 (1,345,700) $ 4 43,680 ( 75.20%) - 1 6,000 12 9,800 $ 5 87, 332 2 8.37%
- - - $ 3 32,702 0 .00%
- 730,814 (349,966) $ 1 ,088,985 - 24.32% - 8 12,257 3 ,278 $ 6 66,278 0.4 9%
- 3 34,056 (1,434) $ 11 ,798 - 10.84%
- - - $ 3 44,536 0 .00%
- 3 00,000 (300,000) $ 5 37, 268 - 35.83% - - - $ 3 7,70 4 0 .00%
- - - $ 1 4,079 0 .00%
- - - $ 6 0,675 0 .00%
- - - $ 1 4,452 0 .00%
4,745,000 4,745,000 - $ 3 3,258 0 .00%
3 49,920 7 03,118 2 1,802 $ 2 06,485 11 .81% 650,000 650,000 - $ 1 4,990 0 .00%
3,150,000 3,150,000 6,556 $ 1 ,651,198 0.4 0% $ 10,684,920 $ 16,559,431 $ (1,820,937) $ 6 ,599,457 (21.63%)

$ 1 00,000 $ 4 46,805 $ (2 46,805) $ 5 ,616 ( 97.78%) - 1 68,339 (4 8,339) $ 2 19,847 - 18.02% 250,000 250,000 1 50,000 $ 5 92,497 3 3.90% - - - $ 3 66,803 0 .00%
- - - $ 3 34,004 0 .00%
1 50,000 1 50,000 $ 1 61,383 - 4 8.17%
6,100,000 7,228,352 (518,836) $ 2 ,967,530 - 14.88% - - 4,026 $ 8 6,195 4 .90%
- - 12,285 $ 18 2,583 7. 21%
- 50,000 6 0,000 $ 4 62,130 1 4.92%
- - - $ ( 557,033) 0 .00%
4 ,666,000 4,886,000 (1,210,793) $ 7 53,371 ( 61.64%) - - - $ 2 13,146 0 .00%
- - - $ 1 4,684 0 .00%
- - - $ 4 09,023 0 .00%
$ 11,266,000 $ 13,179,496 $ (1,948,462) $ 6,211,779 (23.88%) $ 21,950,920 229,705,501 (3,769,398) $ 70,236,028 (5.09%)

$ - $ 6 ,090,648 $ ( 137,0 49) $ 4 ,103,910 - 3.23% - 5 ,965,614 (44,656) 407,577 - 9.87%
1,634,675 3 ,115,809 - $ 2 ,143,832 0 .00% $ 1,634,675 $ 15,172,071 $ (181,705) $ 6,655,319 - 2.66% $ 23,585,595 $ 244,877,572 $ (3,951,103) $ 76,891,347 (4.89%)

31City of Costa Mesa, California
suMMarIes of
fInancIal da ta
79 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

GENERAL FUND

Fund 101 - General Fund $ 184,490,064 $ 190,046,650 $ 186,855,606 $ 199,966,575 7%

SPECIAL REVENUE FUNDS
Fund 130 - Cultural Arts Master Plan
Cannabis Q Bus Tax $ 1 32,412 $ 2 31,201 $ 2 42,200 $ 2 42,200 0% Total Fund 130 $ 132,412 $ 231,201 $ 242,200 $ 242,200 0%

Fund 140 - First Time Homebuyer Program
Cannabis X Bus Tax $ - $ - $ 2 42,200 $ 2 42,200 0% Cannabis Q Bus Tax 1 32,412 231,201 - - 0% Total Fund 140 $ 132,412 $ 231,201 $ 242,200 $ 242,200 0%

Fund 150 - Disaster Fund
FEMA Disaster Reimbursement $ - $ 6 3,574 $ - $ - 0% Total Fund 150 $ - $ 6 3,574 $ - $ - 0%

Fund 201 - Gas Tax
Investment Earnings $ 2 09,088 $ 3 42,767 $ - $ - 0% GASB 31 Market Value Adjustmnt 14 0,331 134,499 - - 0% Gasoline Tax - Section 2103 1 ,023,298 1 ,074,745 1 ,023,777 1 ,099,842 7 % Gasoline Tax - Section 2105 682,428 698,938 716,150 7 35,444 3 % Gasoline Tax - Section 2106 439,467 4 55,475 458,786 4 74,070 3 % Gasoline Tax - Section 2107.1 9 23,725 927,202 977,383 9 83,457 1 % Gasoline Tax - Section 2107.5 1 0,000 1 0,000 10,000 10,000 0% Other Reimbursements 167,874 218,959 - - 0% Total Fund 201 $ 3,596,212 $ 3,862,586 $ 3, 186,096 $ 3,302,813 4%

Fund 203 - Air Quality
Investment Earnings $ 10 ,571 $ 1 7,906 $ - $ - 0% Air Q uality I mprovement F ees 1 50,191 14 5,853 14 5,800 14 5,800 0% GASB 31 Market Value Adjustmnt 6,940 8, 968 - - 0% Total Fund 203 $ 167,702 $ 172,727 $ 145,800 $ 145,800 0%

Fund 204 - American Rescue Plan
Investment Earnings $ 1 66,876 $ 77 ,484 $ - $ - 10 0% American Rescue Plan 3 ,620,652 4, 894,160 - - 0% Total Fund 204 $ 3,787,528 $ 4,971,644 $ - $ - 100%

Fund 205 - HOME Investment Partnerships Program (HOME)
Lien/Loan Repayment $ 1 23,856 $ 13 4,836 $ 2 0,000 $ 4 0,000 10 0% Investment Earnings 34,543 8,791 - - 0%
HOME Invest. Partnership Grant 93 0,233 5 60,386 3 76,014 3 40,848 - 9% GASB 31 Market Value Adjustmnt 3 ,752 5,864 - - 0% Total Fund 205 $ 1,092,383 $ 709,877 $ 396,014 $ 380,848 -4% 32 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
80 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

Fund 207 - Community Development Block Grant (CDBG)
Lien/Loan Repayment $ 3 0,900 $ - $ - $ - 0% Community Dev. Block Grant $ 6 19,833 $ 1 ,509,889 $ 8 74,288 $ 8 15,535 -7 % Investment Earnings 4 1,661 - - 0%
Total Fund 207 $ 650,738 $ 1,511,551 $ 874,288 $ 815,535 -7%

Fund 213 - Supplemental Law Enforcement Services (SLESF) Investment Earnings $ ( 33) $ (4 2) $ - $ - 0% Citizens’ Option Public Safety 3 21,103 332,622 332,622 332,622 0% GASB 31 Market Value Adjustmnt 2 92 - - - 0% Total Fund 213 $ 321,361 $ 332,580 $ 332,622 $ 332,622 0%

Fund 216 - Rental Rehabilitation Program
Investment Earnings $ 6 ,975 $ 10 ,767 $ - $ - 0% GASB 31 Market Value Adjustmnt 4,318 4 ,997 - - 0% Lien/Loan Repayment - 40,000 - - 0%
Total Fund 216 $ 11,293 $ 55,764 $ - $ - 0%

Fund 217 - Narcotics Forfeiture
Investment Earnings $ 3 8,985 $ 5 3,871 $ - $ - 0% Asset Forfeiture - Treasury 1 25,118 18,655 - - 0% GASB 31 Market Value Adjustmnt 2 3,516 24,215 - - 0% Total Fund 217 $ 187,619 $ 96,741 $ - $ - 0%

Fund 220 - Office of Traffic Safety
Other Federal Grants $ 1 70,219 $ 3 29,559 $ - $ - 0% Total Fund 220 $ 170,219 $ 3 29,559 $ - $ - 0%

Fund 230 - Federal Grants
Investment Earnings $ 7 8,150 $ 8 7,733 $ - $ - 0% Other Federal Grants 3 1,179 1 ,225,911 6,382,000 4,745,000 - 26% Local Law Enforcemnt Blk Grnt 5 ,638 1 8,946 - - 0% Other State Grants 47,310 - - - 0%
Other County Grants/Programs 83,009 - - - 0% Total Fund 230 $ 245,286 $ 1,332,590 $ 6,382,000 $ 4,745,000 -26%

Fund 231 - State Grants
Other State Grants $ 2, 994,375 $ 6 ,266,404 $ 3 75,000 $ 7 24,920 9 3% Total Fund 231 $ 2,994,375 $ 6,266,404 $ 375,000 $ 724,920 93%

Fund 232 - Federal Grants
State/Local Partnership Grant $ 5 0,000 $ - $ - $ - 0% Other Governmental Agencies 63,602 329,200 5 00,000 650,000 30% Investment Earnings 78 ( 80) - - 0%
Total Fund 230 $ 113,680 $ 329,121 $ 500,000 $ 650,000 30%

33City of Costa Mesa, California
suMMarIes of
fInancIal da ta
81 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Fund 251 - Road Maintenance and Rehabilitation Account (RMRA) Gas Tax Investment Earnings $ 2 97, 830 $ 4 46,790 $ - $ - 0% Gasoline Tax - RMRA 2,902,974 3 ,069,996 2 ,951,612 3,156,556 7 % GASB 31 Market Value Adjustmnt 198,542 218,444 - - 0% Total Fund 251 $ 3,399,347 $ 3,735,230 $ 2,951,612 $ 3,156,556 7%

CAPITAL PROJECTS FUNDS
Fund 208 - Park Development Fees
Investment Earnings $ 6 6,926 $ 7 4,554 $ - $ - 0% Park Development Fees 1 42,598 262,786 100,000 2 00,000 10 0% GASB 31 Market Value Adjustmnt 36,908 2 9,783 - - 0% Total Fund 208 $ 2 46,433 $ 367,122 $ 100,000 $ 200,000 10 0%

Fund 209 - Drainage Fees
Investment Earnings $ 5 3,870 $ 7 4,699 $ 2 ,339 $ - - 100% Drainage Assessment Fees 8 1,806 1 50,933 100,000 120,000 2 0% GASB 31 Market Value Adjustmnt 32,291 3 4,818 - - 0% Total Fund 209 $ 167,968 $ 2 60,450 $ 102,339 $ 120,000 17%

Fund 214 - Traffic Impact Fees
Investment Earnings $ 1 20,724 $ 1 45,916 $ - $ - 0% Traffic I mpact Fees 39,292 5 54,731 6 00,000 4 00,000 - 33% GASB 31 Market Value Adjustmnt 69,611 61 ,768 - - 0% Total Fund 214 $ 229,627 $ 7 62,416 $ 600,000 $ 400,000 -33%

Fund 401 - Capital Outlay
Investment Earnings $ 7 26,432 $ 1 ,067, 851 $ - $ - 0% GASB 31 Market Value Adjustmnt 4 77,293 5 02,418 - - 0% Other Federal Grants 2,972 516,334 - - 0% Other Governmental Agencies 150,000 50,000 - - 0% Other Reimbursements 9, 254 2 2,376 - - 0% Other 26,598 25 - - 0%
Total Revenues $ 1,392,551 $ 2,159,003 $ - $ - 0% Operating Transfers In $ 7 ,194,994 $ 3 ,949,994 $ 1 ,200,000 $ 6 ,709,516 4 59% Total Other Financing Sources $ 7,194,994 $ 3,949,994 $ 1,200,000 $ 6,709,516 459% Total Fund 401 $ 8,587,545 $ 6,108,997 $ 1,200,000 $ 6,709,516 459%

34 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
82 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Fund 409 - Vehicle Parking District 1
Secured Property Tax $ 9 ,124 $ 9 ,972 $ 4 ,000 $ 4 ,000 0% Unsecured Property Tax 12 13 1 2 1 2 0%
Supplemental Property Tax 11 10 1 1 1 1 0% Homeowners Property Tax 2 2 2 2 0%
Delinquent Tax - Penalties/Int 1 1 1 1 0% Investment Earnings 1,284 2 ,072 - - 0%
GASB 31 Market Value Adjustmnt 8 70 1 ,026 - - 0% Total Fund 409 $ 11,303 $ 13,095 $ 4,026 $ 4,026 0%

Fund 410 - Vehicle Parking District 2
Secured Property Tax $ 1 5,4 40 $ 1 7, 894 $ 1 2,260 $ 1 2,260 0% Unsecured Property Tax 10 11 1 1 1 1 0%
Supplemental Property Tax 9 8 1 1 1 1 0%
Homeowners Property Tax 1 1 2 2 0%
Delinquent Tax - Penalties/Int 0 1 1 1 0% Investment Earnings 2, 844 4 ,445 - - 0%
GASB 31 Market Value Adjustmnt 1 ,888 2 ,174 - - 0% Total Fund 410 $ 20,193 $ 24,534 $ 12,285 $ 12,285 0%

Fund 413 - Golf Course Improvement
Investment Earnings $ 1 5,581 $ 6 7,726 $ - $ - 0% Golf Course Operations 179,443 1 86,142 1 10,000 1 10,000 0% GASB 31 Market Value Adjustmnt 9 ,183 1 2,030 - - 0% Total Fund 413 $ 204,207 $ 265,897 $ 1 10,000 $ 1 10,000 0% Fund 415 - Measure M2 Competitive
Measure “M2” Regional Grant $ 6 80,760 $ 3 75,000 $ - $ - 0% Total Fund 415 $ 680,760 $ 3 75,000 $ - $ - 0%

Fund 416 - Measure M2 Fairshare
Investment Earnings $ 1 76,465 $ 2 54,273 $ - $ - 0% Measure “M2” Fairshare 3 ,489,746 3 ,485,654 3,982,472 3 ,675,207 - 8% GASB 31 Market Value Adjustmnt 1 19,330 120,327 - - 0% Total Fund 416 $ 3,785,541 $ 3,860,254 $ 3,982,472 $ 3,675,207 -8% Fund 417 - Jack Hammett Sports Complex Capital Improvement Investment Earnings $ 9 ,809 $ 1 5,605 $ - $ - 0% Jack Hammett Field Rental 165,000 - - - 0% GASB 31 Market Value Adjustmnt 7,527 8 ,278 - - 0% Total Fund 417 $ 182,336 $ 23,882 $ - $ - 0%

Fund 420 - Park Land Acquisition
Operating Transfers In $ 3 84,576 $ - $ - $ - 10 0% Investment Earnings $ 1 ,516 $ 1 1,104 $ - $ - 0% GASB 31 Market Value Adjustmnt $ 5 ,866 $ 5 ,960 $ - $ - 0% Total Fund 420 $ 391,958 $ 17,065 $ - $ - 100% 35City of Costa Mesa, California
suMMarIes of
fInancIal da ta
83 All Funds Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

INTERNAL SERVICE FUNDS
Fund 601 - Equipment Replacement Fund
Investment Earnings $ 1 93,338 $ 1 90,744 $ 5 2,313 $ 5 2,313 0% Sale of Automotive Equipment 118,453 123,424 - - 0% Sale of Other Equipment 5 9,764 4,406 - - 0% Automotive Equipment, Rental 5 ,846,393 6 ,143,747 5 ,901,286 5 ,901,286 0% GASB 31 Market Value Adjustmnt 1 17,420 9 8,154 - - 0% Damage to City Property 1 0,000 - - - 0%
Other Reimbursements - 44,188 - - 0%
Other - 2 32 - - 0%
Total Revenues $ 6,345,367 $ 6 ,604,893 $ 5,953,599 $ 5,953,599 0% Operating Transfers In $ 1 70,000 $ - $ - $ - 0% Total Other Financing Sources $ 170,000 $ - $ - $ - 0% Total Fund 601 $ 6,515,367 $ 6 ,604,893 $ 5,953,599 $ 5,953,599 0%

Fund 602 - Self Insurance Fund
Investment Earnings $ 4 52,080 $ 5 56,617 $ - $ - 0% Unemployment Premiums 80,180 80,180 8 0,180 8 0,180 0% General Liability Premiums 2,072,221 2,072,221 2, 392,171 2 ,900,864 2 1% Workers’ Compensation Premiums 2,939,914 2,939,914 2 ,939,914 2 ,939,914 0% GASB 31 Market Value Adjustmnt 2 83,642 255,878 - - 0% Damage to City Property - 29,258 - - 0%
Total Revenues $ 5,828,037 $ 5,934,068 $ 5,412,265 $ 5,920,958 9% Operating Transfers In $ 4 32,039 $ - $ - $ - 0% Total Other Financing Sources $ 432,039 $ - $ - $ - 0% Total Fund 602 $ 6,260,076 $ 5,934,068 $ 5,412,265 $ 5,920,958 9% Fund 603 - IT Replacement Fund
Investment Earnings $ 2 48,493 $ 3 62,202 $ - $ - 0% GASB 31 Market Value Adjustmnt 174,489 1 89,300 - - 0% Total Revenues $ 422,981 $ 551,501 $ - $ - 0%
Operating Transfers In $ 3 ,114, 347 $ 2 ,856,000 $ 1 ,597, 836 $ 3 ,115,809 95 % Total Other Financing Sources $ 3,114,347 $ 2,856,000 $ 1,597,836 $ 3,115,809 95% Total Fund 603 $ 3,537,328 $ 3,407,501 $ 1,597,836 $ 3,115,809 95%

TOTAL REVENUES $ 221,401,890 $ 235,498,183 $ 218,760,424 $ 231,101,144 6% TOTAL OTHER SOURCES $ 10,911,380 $ 6,805,994 $ 2,797,836 $ 9,825,325 251% GRAND TOTAL ALL FUNDS $ 232,313,270 $ 242,304,177 $ 221,558,260 $ 2 40,926,469 9% 36 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
84 General Fund Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)

GENERAL FUND
Fund 101 - General Fund

Taxes
Secured Property Tax $ 3 7,592 ,131 $ 3 9,550,555 $ 42 ,215,803 $ 4 2,471,611 1 % Unsecured Property Tax 1 ,091,599 1,231,279 1 ,225,024 1 ,459,338 1 9% Supplemental Property Tax 9 33,133 9 48,375 996,508 1,010,873 1 % Homeowners Property Tax 145,287 1 44,520 1 68,295 151,779 - 10% Delinquent Tax - Penalties/Int 6 8,540 8 1,685 72 ,539 8 9,629 2 4% Property Transfer Tax 995,403 8 71,383 1,139,605 924,364 - 19% Property Tax In-Lieu of VLF 15,639,656 16,489,859 17,154,400 1 7,903,308 4% Sales Tax 7 6,400,160 78,244,492 7 3,654,333 8 1,105,836 10 % Sales Tax - Prop 172 1,396,143 1 ,392,219 1,395,843 1,435,997 3 % Transient Occupancy Tax 1 0,150,696 9 ,962,421 9 ,843,276 10,573,611 7 % Electric Utility Franchise Tax 1,781,661 1 ,859,611 1 ,859,611 1,896,233 2% Cable TV Franchise Tax 722,645 6 46,857 8 38,557 4 86,242 - 42% PEG Cable TV Franchise Tax 1 72,565 125,179 164,416 10 8,623 - 34% Gas Utility Franchise Tax 3 92,610 25 8,366 412,610 3 02,586 -2 7% Business License Tax 7 07,121 978,401 940,807 980,741 4% - - -
Solid WasteHauler Frnchise Tax 3 ,473,321 3 ,747,137 3,603,384 4,639,062 2 9% Cannabis X Bus Tax 5 14,354 7 47,736 70 8,201 779,376 10 % Cannabis Q Bus Tax 2 ,416,215 2,871,971 2 ,907,066 2,884,977 - Total Taxes $ 154,593,240 $ 160,152,045 $ 159,300,278 $ 169,204,186 6%

Licenses and Permits
Dog Licenses $ 6 3,545 $ 7 0,818 $ 7 4,066 $ 6 6,183 - 11% Fire Permits 7 7,610 92,565 10 1,542 9 7,706 - 4% Fire Construction Permits 10 1,680 97,651 243,155 118,212 - 51% Building Permits 2,318,788 3,065,605 3 ,344,210 3,511,420 5 % Electrical Permits 2 15,770 225,751 2 93,872 2 79,983 - 5% Plumbing/Mechanical Permits 2 32,545 282,246 3 18,505 2 99,059 - 6% Street Permits 881,628 9 55,175 9 08,510 1,320,701 4 5% Special Business Permits - - 4 30 - - 100% Cannabis X Bus Permit 273,236 1 59,734 1 91,465 84,099 - 56% Cannabis Q Bus Permit - 6 8,088 1 18,441 8 8,972 -2 5% Home Occupation Permits 1 5,901 1 9,600 25,963 1 9,631 - 24% Operator’s Permits 9, 406 4,875 2 ,500 4,259 70 % Self-Haul Permit 40,600 3 2,800 3 7,260 3 3,161 - 11% Other Permits 37,897 4 2,591 40,308 46,934 1 6% Total Licenses and Permits $ 4 ,268,606 $ 5,117,499 $ 5,700,227 $ 5,970,320 5%

37City of Costa Mesa, California
suMMarIes of
fInancIal da ta
85 General Fund Revenues and Sources of Funds
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Fund/Account Description
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
%
Incr/
(Dec)
Fund 101 - General Fund (continued)

Fines and Forfeitures
Municipal Code Violations $ 8 3,752 $ 1 11, 391 $ 1 75,000 $ 1 16, 25 4 - 34% Vehicle Code Violations 2 15,612 2 51,913 2 93,588 2 85,033 - 3% Parking Citations 9 80,277 1 ,069,108 8 03,503 1,240,704 5 4% Red-Light Violation 1 7,678 23,352 30,000 20,000 - 33% Total Fines and Forfeitures $ 1,297,319 $ 1,455,764 $ 1,302,091 $ 1,661,991 28%

Use of Money and Property
Investment Earnings $ 1 ,167,6 35 $ 1 ,585,572 $ 5 00,000 $ 1 ,100,000 1 20% GASB 31 Market Value Adjustmnt 7 79,833 6 43,356 ( 500,000) - - 100% Int. Earned on Lease Payments 113,866 50,135 8 8,493 5 0,000 - 43% Buildings/Grounds, Rental 250,879 2 51,784 2 60,000 25 2,288 - 3% Downtown Community Center,Rent 22,021 33,910 2 1,758 33,978 5 6% Balearic Community Center,Rent 11,831 13,027 12,573 13 ,053 4% N Hertzog Comm Center, Rent 1 07,158 127,166 1 28,122 1 29,222 1 % Senior Center, Rental 14 0 - - - 10 0%
Field Rental 14 8,210 1 67,089 202,311 2 02,102 0% Tennis,Rental 7 3,816 72 ,406 1 00,000 6 3,481 - 37% 3175 Airway Rental 1 25,940 72,263 - - 10 0% Golf Course Operations 3,717,380 3,974,455 4 ,205,161 4,193,934 0% Bus Shelter Advertising 5 5,419 9 9,325 89 ,832 103,565 1 5% Total Use of Money and Property $ 6,574,128 $ 7,090,489 $ 5,108,250 $ 6,141,623 20%

Other Government Agencies
Other Federal Grants $ 8 38,889 $ 3 26,713 $ 5 3,354 $ - - 100% Motor Vehicle In-Lieu Tax 13 8,951 1 77,378 1 77,378 203,035 14 % Peace Offcrs. Stand./Training 2 8,253 27 ,273 3 0,300 30,000 - 1% Beverage Container Program - - 3 1,050 - - 100% Mattress Recycling Council 9,000 7, 770 10 ,500 7,700 -2 7% Reimb. of Mandated Costs 252,485 2 45,827 5 5,000 2 58,118 3 69% Other State Grants 618,821 1 ,141,377 350,000 6 50,000 8 6% Other County Grants/Programs 294,107 2 57,866 230,000 300,000 30%

Total Other Govt. Agencies $ 2,180,506 $ 2 ,184,204 $ 937,582 $ 1,448,853 55%

Other Financing Sources
Operating Transfers In $ 888 ,618 $ 6 31 $ - $ - 10 0% Total Other Financing Sources $ 888,618 $ 631 $ - $ - 100% Total Fund 101 $ 184,485,564 $ 190,046,650 $ 186,855,606 $ 199,966,575 7%

40 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
88 Sales Tax In-Lieu Sales and Use Tax - Prop 172 Sales and Use Tax FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$12,000,000
$24,000,000
$36,000,000
$48,000,000
$60,000,000
$72,000,000
$84,000,000
$96,000,000
Sales and Use Tax
Description
Sales t ax a pplies t o a ll r etail s ales o f g oods a nd m erchandise e xcept t hose s pecifically e xempt b y l aw. U se t ax generally applies to the storage, use, or other consumption in California of goods purchased from retailers in transactions where sales tax is not collected. A portion of the sales and use tax is a state tax while another portion is a l ocally i mposed t ax. T he c urrent s ales a nd u se t ax r ate i n t he C ity o f C osta M esa i s 7 .75% o n a ll t axable s ales, of w hich C osta M esa r eceives a n “ effective” r ate o f 1 %. W hat i s a lso i ncluded i s t he P roposition 1 72 h alf-cent s ales and use tax approved by voters in 1993 to cushion the impact of the “Educational Revenue Augmentation Fund” (ERAF) property tax shifts. The State collects the Proposition 172 tax and apportions it to each county based on their proportionate share of statewide taxable sales. Each county is then required to allocate this revenue to the cities for public safety services only. The sales and use tax rate at the City is broken down as follows:

State General Fund 5 .00%
City of Costa Mesa General Fund 1.00%
Countywide Transportation Tax 0 .25%
County Mental Health 0 .50%
Public Safety Augmentation Fund (Prop 172) 0 .50%
County Transactions Tax (Measure M) 0 .50%
Total Rate 7.75%

Sales and use tax represents Costa Mesa’s single largest revenue source at approximately 40 percent of the total General Fund revenues projected for Fiscal Year 2026-27.

Trend
Current y ear’s i nfluences o n S ales a nd U se T ax i nclude t he i mpact o n c onsumer s pending a nd s entiment, p ersistent inflation, u ncertain fi scal p olicy, a nd h igh i nterest r ates o n l arge p urchases s uch a s a utos, h ome i mprovement and large household items. Fuel prices remain volatile due to dynamic demand as a result of global economic uncertainty.

Outlook
Sales tax receipts are forecasted to continue slightly grow in Fiscal Year 2026-27 from Fiscal Year 2025-26. While the consumer spending has previously proven to be relatively resistant, higher costs on core household goods, persistently h igh i nterest r ates, g eopolitical c onflict, i ncreased f uel p rices, a nd u ncertainty o f fi scal p olicy ( such as t ariffs) o n f uture i nflation a nd e conomic g rowth h ave l ed c onsumers to r emain c autious. A m oderate s ales t ax receipt increased is forecasted at this time, however economic growth will be dependent on Fed policy and the duration of geopolitical conflict.

41City of Costa Mesa, California
suMMarIes of
fInancIal da ta
89 Property Tax In-Lieu of VLF Property Transfer Tax
Delinquent Tax - Penalties/Int Property Tax - Homeowners Property Tax - Secured - Suplemental Property Tax - Unsecured Property Tax - Secured
FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$12,000,000
$24,000,000
$36,000,000
$48,000,000
$60,000,000
$72,000,000
Property Tax
Description
Property t ax i s i mposed o n r eal p roperty ( defined b y l and a nd p ermanently a ttached i mprovements s uch a s b uildings) a nd t angible personal property (movable property) located within Costa Mesa, based on the property value. Properties are distinguished as secured a nd u nsecured ( property f or w hich t he v alue o f t he l ien i s n ot s ufficient t o a ssure p ayment o f t he t ax). W ith t he p assage o f Proposition 1 3 i n 1 978, p roperty t axes m ay n ot e xceed 1 % o f t he a ssessed v alue. T he C ity’s s hare o f t he 1 % i s e quivalent t o 1 5 c ents on e very d ollar c ollected b y t he C ounty fo r p roperty t axes. A ssessment i ncreases t o r eflect c urrent m arket v alues a re a llowed w hen property ownership changes or when improvements are made; otherwise, increases in assessed value are based on the Consumer Price I ndex ( CPI), c apped a t 2 % p er y ear. T he C PI f or F iscal Y ear 2 026-27 i s 2 .37%. T he C ity’s t op p roperty t axpayers i nclude T he Irvine Company, South Coast Plaza, PR II MCC South Coast Property Owners LLC, United Dominion Realty LP, Advanced Costa Mesa 23 LLC, and Automobile Club of Southern CA.

This category also includes property tax in lieu of vehicle license fees (VLF). Prior to the 2004 State Budget Act, the VLF tax rate was 2% of the motor vehicle value. The State General Fund “offset” 67.5% of this tax resulting in an effective VLF tax rate of 0.65%. A backfill f rom t he S tate’s G eneral F und b rought t he c ities a nd c ounties’ r evenue s hare e quivalent t o a f ull 2 % V LF t ax r ate. T he 2 004 budget included a permanent reduction of the VLF rate to 0.65%, eliminated the VLF backfill and replaced it with a matching amount of property taxes. After FY 2004-05, each city’s property tax in Lieu of VLF increases (or decreases) annually in proportion to the change in the jurisdiction’s assessed valuation.

Property t ax r epresents C osta M esa’s s econd l argest r evenue s ource a t a pproximately 24 % o f t he t otal G eneral Fund revenues for Fiscal Year 2026-27.

Trend
Home s ales i n fi scal y ear 2 025-2026 h ave r emained r elatively fl at v ersus t he p rior fi scal y ear a s d emand l eveled o ff due t o h igh i nterest r ates. T he m edian p rice i n t he C ity f or 2 025 i ncreased f rom 2 024 b y 7 .02 p ercent t o $ 1,600,000.

Outlook
For F iscal Y ear 2 026-27, e stimated r evenue f rom p roperty t ax i s $ 64.0 m illion. T his e stimate i s a n i ncrease o f $1.0 m illion, or 1 .6 p ercent o ver t he F iscal Y ear 2 025-26 adopted b udget.The p ersistent p ressure on t he a vailable homes for sale along with higher interest rates have not resulted in the year-over-year growth as we saw during the p ost-pandemic p eriod. T he C ity r etains H dL C oren & C one, a n e xpert i n m unicipal fi nance, t o a ssist w ith forecasting, trend analysis, and other property tax services.

42 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
90 Transient Occupancy Tax
FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$1,200,000
$2,400,000
$3,600,000
$4,800,000
$6,000,000
$7,200,000
$8,400,000
$9,600,000
$10,800,000
$12,000,000
Transient Occupancy Tax
Description
Transient occupancy tax (TOT) is imposed on persons staying 30 days or less in a hotel, inn, motel, tourist home, or other lodging facilities. There are 29 hotels and lodging facilities located within Costa Mesa and the current TOT rate i s 8 %. A dditionally, t he C ity C ouncil a dopted a b usiness i mprovement a rea ( BIA), w hich i ncludes m emberships from 1 1 C osta M esa h otels. B IA i mposes a n a dditional 3 % l evy o n s tays a t m ember h otels a nd t he c ollection i s remitted to Travel Costa Mesa, a non-profit organization, to promote travel and tourism throughout the City.

Factors i nfluencing T OT r evenue i nclude b usiness a nd l eisure t ravel, n ew h otels, h otel e xpansion, a nd r oom r ate increases. D ue t o c lose p roximity t o t he J ohn W ayne A irport, t he C osta M esa h otel m arket b enefits f rom b usiness and leisure spending of both domestic and international travelers.

TOT is the General Fund’s fourth largest revenue source at approximately 5% of the total General Fund revenues.

Trend
Costa Mesa saw a slight uptick in travel early in the Fiscal Year 2025-26 , however a reduction in spending by consumers on leisure travel may transpire if high fuel prices persist. .

Outlook
In Fiscal Y ear 2 026-27, h otel t ax i s projected a t $ 10.6 m illion, w ith a n i ncrease o f a pproximately $ 0.7 m illion o r

7.4 p ercent a bove t he p rior y ear. D espite c oncerns o ver U .S. p olicies a nd g eopolitical c onflict, t ravel a nd h otel tax revenue is forecasted to increase slightly. The stock market has reached all-time highs, which increases the wealthier households’ discretionary spending on experiences such as leisure travel..

43City of Costa Mesa, California
suMMarIes of
fInancIal da ta
91 Solid Waste Hauler Franchise Fee Gas Franchise Fee
PEG Cable Franchise Fee Cable TV Franchise Fee
Electric Franchise Fee
FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$1,500,000
$3,000,000
$4,500,000
$6,000,000
$7,500,000
$9,000,000
Franchise Fees
Description
Solid w aste h auler f ranchise f ee i s the C ity’s l argest f ranchise f ee, w hich i s e stimated t o b e a t approximately $4.6 m illion a nnually. T he C ity C ouncil a dopted t he S olid W aste H auler F ranchise O rdinance a nd c orresponding franchise f ees, e ffective F ebruary 1 , 2 005. O ver t he y ears, t he C ity C ouncil r evised t he o rdinance t o d efine h auler classes and adopted new fees. The City’s current solid waste hauler franchise fee is 16 percent of gross receipts on business conducted within Costa Mesa. The City also allows contractors to obtain a Self-Haul Permit and corresponding Per-Project Permit. These permit fees are categorized under the licenses and permits and fees and charges for services revenue accounts, respectively.

The C ity g rants f ranchise r ights t o t hree o ther b usinesses t hat u se C ity s treets a nd r ights-of-way: e lectric, g as, a nd cable television. Currently, the City collects electric and gas franchise fees equal to 2 percent of gross receipts, and cable franchise fees equal to 5 percent of gross receipts. The electric and gas franchise fees are paid annually while the cable franchise fees are paid on a quarterly basis. The California Public Utility Commission limits electric and gas franchise fees to 2 percent and cable franchise fees to 5 percent of gross receipts. Any growth in utility franchise revenues would be as a result of utility rate increases imposed by the electric, gas, and cable companies.

The c able f ranchise a lso p ays a PEG ( Public, Ed ucation, a nd G overnment) f ee, e stimated a t $ 109,000 for n ext year. T he G eneral F und u ses t his a mount t o support t he o perating c osts o f public a ccess c able t elevision s ervices provided by the City.

Trend
Solid waste hauling activities from commercial and residential projects have increased steadily over the past several years. The revenue is expected to continue since the City is built out and property owners often opt to renovate or rebuild their property. Any growth in electric and gas franchise fees is limited to rate increase and additional new development.

Outlook
For F iscal Y ear 2 026-27, f ranchise t ax r evenue i s estimated a t $ 7.4 m illion. F ranchise f ees r evenue m akes u p approximately 4 percent of the total General Fund revenues. 44 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
92 Business License Tax
FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Business Licenses
Description
Business licenses are issued for either regulatory or cost recovery purposes, to applicants who conduct business activities within the City. The regulatory authority provides cities the means to protect overall community interests.

The City of Costa Mesa contracts with HdL Companies to conduct a review of the businesses that are operating in the City. Business licenses tax is capped at $200 and has not been adjusted in over four decades.

Trend
In F iscal Y ear 2 024-25, b usiness l icense r evenue r ebounded f rom p rior fi scal y ear a nd a ny l ingering i mpacts from t he C OVID-19 p andemic a nd i s p rojected t o r emain s olid i n F iscal Y ear 2 025-26 i n s pite o f s ome fi scal a nd immigration policy uncertainty, tariffs, and increasing fuel prices affecting businesses.

Outlook
For F iscal Y ear 2 026-27, e stimated r evenue f rom b usiness l icenses i s $ 980,741, w hich r epresents 0 .5% o f total General Fund revenues.
45City of Costa Mesa, California
suMMarIes of
fInancIal da ta
93 Other Street Permits Plumbing/Mechanical Permits
Electrical Permits Building Permits
FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$800,000
$1,600,000
$2,400,000
$3,200,000
$4,000,000
$4,800,000
$5,600,000
$6,400,000
$7,200,000
$8,000,000
Licenses and Permits
Description
Licenses and permits are issued for either regulatory or cost recovery purposes, to applicants who conduct business activities within the City. The regulatory authority provides cities the means to protect the overall community interests. An example of licenses issued is animal licenses. Major categories of permits are street permits, building permits, electrical permits, plumbing permits, and mechanical permits. Also included in the permit revenue are cannabis business permits.

Building p ermits i s t he l argest c ategory o f t he l icense a nd p ermits r evenue a t $ 3.3 m illion, f ollowed b y s treet a nd plumbing p ermits r espectively. B uilding p ermits a re r equired f or m ost s tructure m odifications a nd i ts v olume reflects the local building activities.

Trend
While the total license and permit fee revenues for Fiscal Year 2024-25 has been strong, 2025-26 revenues are projected to continue to show growth, in spite of some potential negative impacts from higher interest rates and slower overall economic growth.

Outlook
With rising interest rates tempering selling activity, property owners are still likely to maintain home improvement spending. F or F iscal Y ear 2 026-27, e stimated re venue f rom li censes a nd p ermits i s $ 6.0 m illion, w hich re presents approximately 3% of total General Fund revenues.
46 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
94 Red Light Violations Parking Citations Vehicle Code Violations Municipal Code Violations
FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Fines and Forfeitures
Description
Fines and forfeitures primarily come from municipal code violations, motor vehicle code violations, and parking fines. A mounts p aid b y a d efendant i nclude fi nes a nd v arious p enalties, a ssessments, a nd r estitution. C ities s hare the revenue from fines and forfeitures with the State and the County.

Parking c itation i s t he l argest l ine i tem i n fi nes a nd f orfeitures a t a pproximately $ 1.0 m illion. T he c itations a re generally f or v iolations t hat c orrespond t o t he no p arking o rdinances. F ines v ar y d epending o n the t ype o f violation.

Trend
Fines a nd f orfeitures h ave b een r elatively c onsistent o ver t he y ears, fl uctuating b etween $ 1.1 m illion a nd $ 1.9 million o ver t he l ast 1 0 y ears. F iscal Y ear 2 026-27 i s p rojected t o i ncrease b y $ 300,000 f rom t he p rior F iscal Y ear.

Outlook
For F iscal Y ear 2 026-27, e stimated r evenue f rom fi nes a nd f orfeitures i s $ 1.7 m illion, w hich r epresents a pproximately 1% of the total G eneral Fund revenue. The estimated amount is reflected from last year’s projected revenues.

47City of Costa Mesa, California
suMMarIes of
fInancIal da ta
95 Rental Income Other Interest GASB 31 Adjustment Investment Earnings FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $-1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Use of Money and Property
Description
Use of money and property consists of interest earned from investing the City’s idle cash, rental of various City facilities s uch a s t he g olf c ourse, p arks, a thletic fi elds, c ommunity c enters, t ennis c enter, a nd l ease f rom t he b us shelter space for advertising.

The l argest i ncome i tem i n t his c ategory i s f rom t he g olf c ourse o perations, w hich i s p rojected t o g enerate $ 4.2 million in rental revenue. A private company manages the golf course operations on behalf of the City under an agreement t hrough Au gust 3 1, 2 029. I n r eturn, t he C ity r eceives b etween 6 % t o 3 5% o f g ross r eceipts o n g reen fees, food and beverages, banquet facilities, and the pro shop. Fees were increased in Fiscal Year 2022-23.

Other s ignificant r evenue i ncluded i n t his c ategory u nder n ormal e conomic c ircumstances i s t he C ity’s i nvestment portfolio e arnings. T he C ity’s i nvestment p ortfolio, v alued a pproximately a t $ 140 m illion, g enerates a s teady income stream from interest. However, the market-to-market adjustment, which is required under the Government Accounting Standards Board (GASB), is not budgeted due to its unpredictability.

Trend
The g olf c ourse o peration g enerates a pproximately 8 1% o f t he C ity’s r ental i ncome a nd h as r emained a s table source of revenue even during the pandemic. This trend is expected to continue as weather permits.

Outlook
For Fiscal Year 2026-27, estimated revenue from use of money and property total $6.1 million, or approximately 3 % o f the t otal G eneral F und r evenues. T he e stimate r epresents a d ecrease i n a pproximately $ 1.1 m illion i ncrease from prior year’s adopted estimate. Included in this total is also estimated Investment Earnings and the GASB impact at year end.

48 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
96 Other Fees and Charges Central Service Charges
Recreation Fees Ambulance Transportation Program
Vehicle Storage/Impound Fees Special Policing Fees
Zoning/Variance/CUP Fees Plan Checking Fee
FY 17-18 ActualFY 18-19 ActualFY 19-20 ActualFY 20-21 ActualFY 21-22 ActualFY 22-23 ActualFY 23-24 ActualFY 24-25 ActualFY 25-26 AdoptedFY 26-27 Proposed $0
$1,500,000
$3,000,000
$4,500,000
$6,000,000
$7,500,000
$9,000,000
$10,500,000
$12,000,000
$13,500,000
$15,000,000
Fees and Charges for Services
Description
Cities h ave t he g eneral a uthority t o impose f ees o r charges f or s ervices. F ees a nd c harges a re d istinguished f rom taxes i n two p rincipal w ays: 1 ) t he a mount o f the f ee m ay n ot e xceed t he e stimated r easonable c ost o f providing t he particular s ervice o r facility f or w hich t he f ee i s charged; a nd 2 ) t he s ervice o r facility f or w hich t he f ee i s charged bears a relationship to the person or entity paying the fee.

Costa M esa’s f ees a nd c harges i nclude: u ser f ees c harged t o a p erson o r entity p articipating i n the v arious r ecreation classes o ffered b y the C ity, p lan c heck f ees, o ther s ervices p rovided b y the P lanning D ivision r elated t o zoning a nd conditional u se p ermits, fi ngerprinting, f alse a larms, p olice r eports, fi re i nspection, a mbulance t ransportation, a nd hazardous materials disclosure fees.

When t he C ity r eviews i ts u ser f ees a nd c harges, i t submits a ny c hanges f or C ouncil a pproval. U ser f ees a nd charges were revised effective January 1, 2009. A review of user fees and charges is currently being conducted with the assistance of a consultant for cost recovery. Since then, certain fees have been updated and approved by the Council. F or c lasses o ffered b y the P arks a nd C ommunity S ervices D epartment, f ee c hanges a re a lso r eviewed and approved by the Parks, Arts, and Community Services Commission.

Trend
In 2018, the City Council authorized the annual adjustment of building fees to align to the change in regional consumer price index (CPI). Fees not proposed for adjustment are primarily Recreation and Facility Rental Fees and f ees l imited b y S tate L aw. I t i s t he i ntent o f s taff t o p erform a f ull c ost o f s ervice s tudy e very t hree t o fi ve y ears and to submit CPI adjustment during interim years with only minor adjustments. The ambulance transportation program, the largest fee line item, will be in its ninth year of operation in Fiscal Year 2026-27. With the adoption of this budget, staff recommends resuming use of a waste fee schedule. This is simply consolidating the city’s various existing fees into a consolidated document.

Outlook
For F iscal Y ear 2 026-27, e stimated r evenue f rom f ees a nd c harges f or s ervice i s $ 13.5 m illion, w hich r epresents approximately 7 percent of the total General Fund revenue. This includes a proposed consumer price index (CPI) increase o f 3 .3% t o c ertain f ees a nd a n ew c redit c ard p rocessing f ee o f 2 .7%. T his p rojected r evenue i s s lightly higher to the prior year’s adopted budget.

49City of Costa Mesa, California
suMMarIes of
fInancIal da ta
97 Schedule of Interfund Transfers
for the Fiscal Year Ending June 30, 2027
Fund Transfers In Transfers Out

General Fund - 101 9,825,324
IT Replacement Fund - 603 3,115,809
Capital Improvement Fund - 401 6,709,516

Subtotal $ 9,825,325 $ 9,825,324

TOTAL $ 9,825,325 $ 9,825,324

50 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
98 By Category
Salaries
Salaries
$80.6M; (33.3%)
$80.6M; (33.3%)
Salaries
$80.6M; (33.3%)
Benefits
Benefits
$26.8M; (11.1%)
$26.8M; (11.1%)
Benefits
$26.8M; (11.1%)
Retirement
Retirement
$44.1M; (18.2%)
$44.1M; (18.2%)
Retirement
$44.1M; (18.2%) Maintenance and Operations
Maintenance and Operations
$52.0M; (21.5%)
$52.0M; (21.5%)
Maintenance and Operations
$52.0M; (21.5%)
Fixed Assets
Fixed Assets
$5.1M; (2.1%)
$5.1M; (2.1%)
Fixed Assets
$5.1M; (2.1%)
Transfers Out
Transfers Out
$9.8M; (4.1%)
$9.8M; (4.1%)
Transfers Out
$9.8M; (4.1%)
Capital Improvement
Capital Improvement
$23.6M; (9.7%)
$23.6M; (9.7%)
Capital Improvement
$23.6M; (9.7%)
Total Appropriations - All Funds (Including Transfers)
Total Appropriations - All Funds (Including Transfers)
for the Fiscal Year Ending June 30, 2027

Total Appropriations - All Funds - $244.9 (Includes Capital Improvement) (in millions)
51City of Costa Mesa, California
suMMarIes of
fInancIal da ta
99 Summary of Appropriations by Department/by Category – All Funds (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
City Council
Salaries a nd B enefits $ 5 72,515 $ 6 03,902 $ 7 90,962 $ 8 05,653 Maintenance and Operations 1 78,062 193,616 1 61,181 161,181 Fixed Assets - - 2 ,000 2,000
Subtotal City Council $ 7 50,577 $ 7 97,518 $ 954,143 $ 968,834

City Manager’s Office
Salaries a nd B enefits $ 9 ,010,354 $ 1 0,677,599 $ 10 ,096,234 $ 1 0,987,159 Maintenance and Operations 7,488,942 8 ,025,001 4,912,360 5 ,399,603 Fixed Assets 10 0,887 14,054 1 6,900 8 ,900
Subtotal City Manager’s Office $ 16,600,184 $ 18,716,655 $ 15,025,494 $ 16,395,662

City Attorney
Maintenance and Operations 9 77,061 1,107,716 1,123,700 1 ,157,411 Subtotal City Attorney $ 977,061 $ 1 ,107,716 $ 1,123,700 $ 1,157,411

Finance
Salaries a nd B enefits $ 3 ,578,893 $ 4, 440,258 $ 4 ,985,873 $ 5 ,168,834 Maintenance and Operations 7 98,210 6 03,605 1,273,330 852,551 Fixed Assets 3 9,480 1 7,094 7 87,300 3 7,300 Subtotal Finance $ 4,416,583 $ 5,060,956 $ 7,046,503 $ 6,058,685

Parks and Community Services
Salaries a nd B enefits $ 7 ,058,462 $ 7, 927, 8 41 $ 6 ,594,381 $ 7, 087, 395 Maintenance and Operations 3 ,340,631 3 ,182,807 3 ,267,4 45 3 ,215,358 Fixed Assets 1 6,647 2,350 3 ,800 3,800
Subtotal Parks and Community Services $ 10,415,740 $ 11,112,999 $ 9,865,626 $ 10,306,553

Information Technology
Salaries a nd B enefits $ 4 ,141,132 $ 4 ,879,652 $ 4 ,819,929 $ 5 ,195,161 Maintenance and Operations 85 8,650 791,693 965,396 5 14,570 Fixed Assets 1,370,904 1 ,040,493 1,883,227 2 ,271,416 Subtotal Information Technology $ 6 ,370,686 $ 6,711,838 $ 7,668,552 $ 7,981,147

Police Department
Salaries a nd B enefits $ 5 6,060,741 $ 6 0,479,457 $ 5 6,296,322 $ 6 3,430,864 Maintenance and Operations 6,825,972 6,616,157 6 ,661,265 5 ,814,025 Fixed Assets 1 ,088,630 1,101,589 993,216 1 ,238,016 Subtotal Police Department $ 63,975,342 $ 68,197,203 $ 63,950,803 $ 70,482,905

Fire and Rescue Department
Salaries a nd B enefits $ 2 9,489,641 $ 3 3,418,841 $ 3 2,985,288 $ 3 3,700,551 Maintenance and Operations 5 ,644,516 5 ,722,116 5,885,188 5 ,688,188 Fixed Assets 2 5,478 26 ,379 32,990 3 2,990
Subtotal Fire and Rescue Department $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 39,421,729

52 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
100
Summary of Appropriations by Department/by Category –
All Funds (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Development Services
Salaries a nd B enefits $ 8 ,452,749 $ 8 ,915,953 $ 9, 454,779 $ 1 0,184,644 Maintenance and Operations 2 ,113,323 2 ,253,568 2 ,000,455 2 ,183,180 Fixed Assets 8 3,403 1 1,882 28,250 54,500
Subtotal Development Services $ 10,649,476 $ 11,181,403 $ 11,483,484 $ 1 2,422,324

Public Works
Salaries a nd B enefits $ 1 1,74 4,853 $ 1 2,913,806 $ 1 3,565,636 $ 1 6,003,689 Maintenance and Operations 16,673,276 1 7,342,748 16,120,329 1 5,901,129 Fixed Assets 7 24,521 204,075 1 ,478,900 1,472,100 Subtotal Public Works $ 29,142,649 $ 30,460,629 $ 31,164,865 $ 33,376,918

Non-Departmental
Salaries a nd B enefits $ - $ 2 ,0 47,615 $ 4 ,859,345 $ 1 ,793,572 Maintenance and Operations 9,070,177 8 ,106,376 11,565,032 10,673,725 Fixed Assets 14,857,218 1 1,573,359 2,797,836 9, 825,324 Subtotal Non-Departmental $ 23,927,395 $ 21,727,351 $ 19,222,213 $ 22,292,621

TOTAL APPROPRIATIONS - ALL FUNDS

Salaries a nd B enefits $ 13 2,070,247 $ 14 6,304,923 $ 1 44,448,7 49 $ 1 54,357,520 Maintenance and Operations $ 5 3,968,821 5 3,945,404 53,508,491 5 1,988,111 Fixed Assets $ 1 8,307,168 13,991,275 8 ,024,419 14,946,346

TOTAL APPROPRIATIONS - ALL FUNDS $ 204,346,236 $ 214,241,602 $ 205,981,659 $ 221,291,977 53City of Costa Mesa, California
suMMarIes of
fInancIal da ta
101
Summary of Appropriations by Account - All Funds (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
Account
Number
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Salaries and Benefits
Salaries and Wages 501000 $ - $ - $ (4 ,346,404) $ ( 4,027,157) Salaries & Wages 501001 - - 1,977,205 2, 938,589 Regular Salaries - Sworn 501100 26,301,467 27,197,952 2 9,599,752 30,899,907 Regular Salaries - Non-Sworn 501200 31,150,967 3 5,647,454 3 8,090,342 42,069,326 Regular Salaries - Part-Time 501300 5,724,714 5,970,991 5 ,023,463 5,007,353 Overtime 501400 8 ,314,837 1 0,917,873 4,904,449 5 ,025,449 Accrual Payoff - Excess Max. 501500 5 57,926 540,031 1 91,128 1 91,128 Vacation/Comp. Time Cash Out 501600 520,372 6 56,840 303,980 303,980 Holiday Allowance 501700 971,160 1 ,125,879 979,119 976,584 Separation Pay-Off 501800 391,598 4 46,192 145,776 145,776 Other Compensation 501900 3,961,466 4,218,914 4,366,638 4 ,823,497 Cafeteria Plan 505100 12 ,229,132 12,839,839 1 4,267,153 1 4,481,455 Medicare 505200 1,191,314 1,327,962 1,114,701 1 ,369,335 Retirement 505300 3 6,028,770 3 9,451,185 41,726,930 4 4,054,523 Longevity 505400 460,619 1 ,000,957 1,199,524 1 ,198,758 Executive Prof Development 505500 74,626 87,069 10 9,526 103,670 Auto Allowance 505600 3 8,415 46,707 48,300 48,300 Unemployment 505800 26 ,854 13 ,058 80,020 80,000 Workers’ Compensation 505900 2,225,102 2 ,828,403 2,207,147 2 ,207,049 City Contrib - Retiree Medical 506100 1 ,900,907 1,987,615 2,460,000 2,460,000 Subtotal Salaries and Benefits $ 132,070,247 $ 146,304,923 $ 144,448,749 $ 154,357,520

Maintenance and Operations
Stationery a nd O ffice 510100 $ 2 20,970 $ 2 15,320 $ 2 19,650 $ 1 92,250 Multi-Media, Promos, Subscrpt. 510200 8 78,106 846,996 658,689 522,305 Small Tools and Equipment 510300 8 41,094 2 87,940 255,092 2 23,026 Uniforms and Clothing 510400 4 64,528 631,690 422,250 379,750 Safety and Health 510500 736,134 580,790 6 58,622 605,931 Maintenance and Construction 510600 1,155,456 95 4,538 7 17,250 7 17,250 Agriculture 510700 10 1,227 63,378 97,000 97,000 Fuel 510800 7 04,695 8 36,924 701 ,400 701 ,400 Electricity - Buildings & Fac. 515100 8 86,363 9 16,336 580,020 580,020 Electricity - Power 515200 3 64,680 324,763 2 81,800 2 81,800 Electricity - Street Lights 515300 1 ,237,221 1 ,272,173 1,000,000 1,000,000 Gas 515400 6 4,014 7 7,786 4 5,400 4 5,400
Water - Domestic 515500 61,352 92,761 76,100 76,100 Water - Parks and Parkways 515600 805,573 1 ,004,422 8 59,100 8 59,100 Waste Disposal 515700 2 71,191 25 8,605 2 62,462 262,702 Janitorial and Housekeeping 515800 5 86,380 6 29,518 6 92,143 6 92,143 Legal Advertising/Filing Fees 520200 223,108 2 92,731 329,600 325,600 Advertising and Public Info. 520300 2 3,582 14,673 1 6,300 1 5,900 Telephone/Radio/Communications 520400 1 ,017,966 9 13,232 8 10,089 8 10,089 Business Meetings 520500 9 7,076 123,191 51,580 54,445 54 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
102
Mileage Reimbursement 520600 1 ,735 2 ,051 3,300 3, 300 Dues and Memberships 520700 212,695 2 30,838 2 08,712 2 06,412 Board Member Fees 520800 5 0,200 5 0,600 4 9,700 4 8,806 Professional Development 520900 706,234 779,959 6 72,827 4 80,381 Buildings and Structures 525100 4 39,094 399,490 3 76,913 3 37,163 Landscaping and Sprinklers 525200 3 ,449,870 3,546,622 3 ,520,500 3 ,520,500 Automotive Equipment 525400 4 64,611 5 92,059 4 64,728 4 64,728 Office F urniture 525600 11,614 - 2 ,000 2,000 Office E quipment 525700 8 0,576 79,666 66,631 56,831 Other Equipment 525800 1 ,397,437 1 ,221,310 941,650 839,150 Streets, Alleys and Sidewalks 525900 1,726,929 1 ,753,245 1 ,812,790 1,812,790 Employment 530100 20,399 1 7,092 26,000 16,000 Consulting 530200 3 ,869,110 3 ,706,281 3,757,822 3,939,731 Legal 530300 1,947,474 1 ,4 47,516 2 ,880,450 1 ,825,211 Engineering and Architectural 530400 3 84,122 4 19,678 5 57,912 4 77,912 Financial & Information Svcs. 530500 6 83,969 5 31,852 1,078,750 67 7,971 Medical and Health Inspection 530600 192,811 282,744 2 28,100 226,100 Public Safety 530700 2 ,875,287 3,003,287 3 ,252,920 3 ,206,320 Recreation 530800 4 33,038 4 77,614 6 45,620 6 22,374 Sanitation 530900 46,960 1 ,040 1 ,200 1,200 Principal Payments 535100 2,254,849 2 ,607,704 3 ,738,983 3 ,838,983 Interest Payments 535200 9 96,717 9 58,932 1 ,156,448 1,156,448 External Rent 535400 8 05,389 6 69,327 9 65,742 993,909 Grants, Loans and Subsidies 535500 2,147,134 2 ,388,122 2,124,914 2 ,329,028 Depreciation 535600 1 ,532,452 1 ,632,720 1,679,726 1 ,375,000 Internal Rent Central Services 535800 6 6,875 65 ,936 9 9,722 99,722 Internal Rent Postage 535900 1 51,327 121,240 111,334 1 10,792 Internal Rent - Maintenance 536100 884,887 885,447 884,887 88 4,887 Internal Rent - Repl Cost 536200 4 ,385,219 4,514,439 4,514,999 4 ,514,999 Internal Rent - Fuel 536400 5 73,094 501,777 501,400 5 01,400 Internal Rent Genl Liability 536500 2,072,221 2,072,221 2, 392,171 2,900,864 Internal Rent Workers’ Comp 536600 2,939,914 2,939,914 2,939,914 2 ,939,915 Internal Rent Unemployment 536700 8 0,180 8 0,180 8 0,180 8 0,180 General Liability 540100 2 ,047,044 2, 748,558 2,082,251 2 ,590,944 Special Liability 540200 - - 9, 400 9,400
Buildings & Personal Property 540500 - - 195,200 1 95,200 Taxes and Assessments 540700 3 37,358 349,557 196,200 2 07,401 Contingency 540800 2 ,926,444 2,517,522 550,000 5 0,000 Other Costs 540900 3 ,711 6,867 1 ,948 1,948 Emergency Protective Measure 580200 29,125 4,229 - - Subtotal Maintenance and Operations $ 53,968,821 $ 53,945,404 $ 53,508,491 $ 51,988,111 Fixed Assets
Automotive Equipment 590500 7 09,476 137,258 1 ,441,000 1,441,000 Office F urniture 590600 4 2,847 14 ,085 1 2,900 7, 900 Office E quipment 590700 4,515 - - -
Other Equipment 590800 2,660,333 2 ,207,106 3 ,022,683 3 ,672,122 Loss on Disposal of Assets 599100 32,779 5 8,835 - - Subtotal Fixed Assets $ 3,449,950 $ 4,146,146 $ 4,476,583 $ 5,121,022 Transfers Out 595100 $ 1 4 , 857, 218 $ 9 ,845,129 $ 3 ,5 47, 836 $ 9, 825,324 Subtotal Transfers Out $ 1 4,857,218 $ 9,845,129 $ 3,547,836 $ 9,825,324 TOTAL APPROPRIATIONS - ALL FUNDS $ 2 04,346,236 $ 214,241,602 $ 2 05,981,659 $ 221,291,977

55City of Costa Mesa, California
suMMarIes of
fInancIal da ta
103
By Category
Salaries
Salaries
$76.4M; (38.8%)
$76.4M; (38.8%)
Salaries
$76.4M; (38.8%)
Benefits
Benefits
$23.9M; (12.1%)
$23.9M; (12.1%)
Benefits
$23.9M; (12.1%)
Retirement
Retirement
$42.9M; (21.8%)
$42.9M; (21.8%)
Retirement
$42.9M; (21.8%)
Maintenance and Operations
Maintenance and Operations
$41.2M; (20.9%)
$41.2M; (20.9%)
Maintenance and Operations
$41.2M; (20.9%)
Fixed Assets
Fixed Assets
$2.8M; (1.4%)
$2.8M; (1.4%)
Fixed Assets
$2.8M; (1.4%)
Transfers Out
Transfers Out
$9.8M; (5.0%)
$9.8M; (5.0%)
Transfers Out
$9.8M; (5.0%)
City Council
City Council
$1.0M; (0.5%)
$1.0M; (0.5%)
City Council
$1.0M; (0.5%)
City Manager
City Manager
$10.4M; (5.2%)
$10.4M; (5.2%)
City Manager
$10.4M; (5.2%)
City Attorney
City Attorney
$1.2M; (0.6%)
$1.2M; (0.6%)
City Attorney
$1.2M; (0.6%) Finance
Finance
$5.9M; (3.0%)
$5.9M; (3.0%)
Finance
$5.9M; (3.0%)
Parks and Community Services
Parks and Community Services
$9.7M; (4.9%)
$9.7M; (4.9%)
Parks and Community Services
$9.7M; (4.9%)
Information Technology
Information Technology
$6.6M; (3.3%)
$6.6M; (3.3%)
Information Technology
$6.6M; (3.3%)
Police
Police
$69.9M; (35.0%)
$69.9M; (35.0%)
Police
$69.9M; (35.0%)
Fire and Rescue
Fire and Rescue
$39.4M; (19.7%)
$39.4M; (19.7%)
Fire and Rescue
$39.4M; (19.7%)
Development Services
Development Services
$10.7M; (5.3%)
$10.7M; (5.3%)
Development Services
$10.7M; (5.3%)
Public Works
Public Works
$22.8M; (11.4%)
$22.8M; (11.4%)
Public Works
$22.8M; (11.4%)
Non-Departmental
Non-Departmental
$22.3M; (11.1%)
$22.3M; (11.1%)
Non-Departmental
$22.3M; (11.1%)
Total Appropriations - General Fund (Including Transfers) for the Fiscal Year Ending June 30, 2027

Total Appropriations - General Fund - $200.0 (includes Capital Improvement) (in millions)
56 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
104
Summary of Appropriations by Department/by Category –
General Fund (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
City Council
Salaries a nd B enefits $ 5 72,515 $ 6 03,902 $ 7 90,962 $ 8 05,653 Maintenance and Operations 1 78,062 193,616 1 61,181 161,181 Fixed Assets - - 2 ,000 2,000
Subtotal City Council $ 7 50,577 $ 7 97,518 $ 954,143 $ 968,834

City Manager’s Office
Salaries a nd B enefits $ 6 ,353,178 $ 7, 395 ,113 $ 7, 4 67,570 $ 8 ,313,839 Maintenance and Operations 2,512,292 2,491,136 2,128,759 2 ,107,309 Fixed Assets 3 7,286 14,054 1 6,900 8 ,900
Subtotal City Manager’s Office $ 8,902,755 $ 9,900,304 $ 9 ,613,229 $ 10,430,048

City Attorney
Maintenance and Operations $ 9 7 7,061 $ 1 ,107,716 $ 1 ,123,700 $ 1 ,157, 411 Subtotal City Attorney $ 977,061 $ 1 ,107,716 $ 1,123,700 $ 1,157,411

Finance
Salaries a nd B enefits $ 3 ,578,893 $ 4 ,436,730 $ 4 ,985,873 $ 5 ,043,527 Maintenance and Operations 7 98,210 6 03,605 1,273,330 852,551 Fixed Assets 3 9,480 1 7,094 37,300 3 7,300
Subtotal Finance $ 4,416,583 $ 5,057,429 $ 6,296,503 $ 5,933,378

Parks and Community Services
Salaries a nd B enefits $ 6 ,883,249 $ 7, 74 4 ,619 $ 6 ,414,691 $ 7 ,057,245 Maintenance and Operations 2,860,191 2 ,663,849 2 ,683,340 2,656,503 Fixed Assets 9,911 - 3 ,800 3,800
Subtotal Parks and Community Services $ 9,753,352 $ 10,408,468 $ 9 ,101,831 $ 9,717,548

Information Technology
Salaries a nd B enefits $ 3 , 807, 287 $ 4 ,197,303 $ 4 ,126,819 $ 4, 424,523 Maintenance and Operations 528,121 791,693 5 60,670 4 14,570 Fixed Assets 1 ,232,559 1 ,040,493 1,883,227 1 ,786,227 Subtotal Information Technology $ 5,567,967 $ 6,029,490 $ 6,570,716 $ 6 ,625,320

Police Department
Salaries a nd B enefits $ 5 5,153,482 $ 5 9,383,960 $ 5 5,642,498 $ 6 2,792,930 Maintenance and Operations 6 ,527,658 6 ,272,190 6 ,226,075 6 ,233,215 Fixed Assets 324,768 1,046,592 9 51,896 896,696 Subtotal Police Department $ 62,005,909 $ 66,702,742 $ 62,820,469 $ 6 9,922,841

57City of Costa Mesa, California
suMMarIes of
fInancIal da ta
105
Summary of Appropriations by Department/by Category –
General Fund (Excludes CIP)
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Department/Category
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Fire and Rescue Department
Salaries a nd B enefits $ 2 9,489,641 $ 3 3,418,841 $ 3 2,985,288 $ 3 3,700,551 Maintenance and Operations 5 ,644,516 5 ,722,116 5,885,188 5 ,688,188 Fixed Assets 2 5,478 26 ,379 32,990 3 2,990
Subtotal Fire and Rescue Department $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 39,421,729

Development Services
Salaries a nd B enefits $ 7, 8 41,123 $ 8 ,415,086 $ 8 ,606,799 $ 9 ,598,845 Maintenance and Operations 1 ,158,259 1 ,144,404 1 ,060,686 1,024,686 Fixed Assets 8 3,403 1 1,882 28,250 2 8,250
Subtotal Development Services $ 9,082,786 $ 9,571,371 $ 9,695,735 $ 10,651,781

Public Works
Salaries a nd B enefits $ 9 , 867, 265 $ 10 ,765,043 $ 1 1,487 ,472 $ 1 2,640,934 Maintenance and Operations 13,230,159 12,044,721 11,058,231 1 0,196,231 Fixed Assets 4 ,540 4 ,320 7,900 7, 900
Subtotal Public Works $ 2 3,101,963 $ 2 2,814,083 $ 22,553,603 $ 22,845,065

Non-Departmental
Salaries a nd B enefits $ 1 ,960,907 $ 2 ,0 47,615 $ 4 ,859,345 $ 1 ,793,572 Maintenance and Operations 9 ,030,177 8 ,049,376 11,565,032 10,673,725 Fixed Assets - 1 ,478,861 - -
Transfers Out 12,432,270 6 ,918,994 2,797,836 9, 825,324 Subtotal Non-Departmental $ 23,423,354 $ 18,494,847 $ 19,222,213 $ 22,292,621

TOTAL APPROPRIATIONS - GENERAL FUND

Salaries a nd B enefits $ 1 25,507,538 $ 1 38,408,211 $ 1 37, 367, 317 $ 1 46,171,618 Maintenance and Operations 4 3,444,708 4 1,084,423 43,726,192 41,165,570 Fixed Assets 1 ,757,426 3,639,674 2,964,263 2, 804,063 Transfers Out 12,432,270 6 ,918,994 2,797,836 9, 825,324

TOTAL APPROPRIATIONS - GENERAL FUND $ 183,141,942 $ 190,051,302 $ 186,855,608 $ 199,966,575 58 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
106
Summary of Appropriations by Account – General Fund (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Salaries and Benefits
Salaries and Wages $ - $ - $ (4 ,346,404) $ ( 4,027,157) Salaries & Wages - - 1,977,205 2, 938,589
Regular Salaries - Sworn 26,037,765 27,019,962 2 9,325,600 30,648,303 Regular Salaries - Non-Sworn 29,170,030 33,227,712 3 5,588,159 38,375,276 Regular Salaries - Part-Time 5 ,585,102 5 ,820,130 4,848,561 4, 844,745 Overtime 7, 927,468 10,264,009 4 ,828,573 4,950,573 Accrual Payoff - Excess Max. 545,763 5 32,524 186,128 186,128 Vacation/Comp. Time Cash Out 509,827 650,019 3 02,980 3 02,980 Holiday Allowance 963,606 1 ,107,008 9 65,235 9 65,235 Separation Pay-Off 373,419 4 29,646 145,376 145,376 Other Compensation 3 ,913,768 4 ,177,004 4, 312,649 4 ,775,675 Cafeteria Plan 11,807,771 12,383,220 13,735,999 1 4,030,013 Medicare 1,148,592 1,279,048 1 ,067,500 1,321,234 Retirement 35,049,145 3 8,403,378 4 0,623,510 42,913,158 Longevity 460,619 996,242 1,192,160 1 ,192,161 Executive Prof Development 75,341 8 3,987 10 5,786 10 1,030 Auto Allowance 3 8,415 46,707 48,300 48,300
City Contrib - Retiree Medical 1 ,900,907 1,987,615 2,460,000 2,460,000 Subtotal Salaries and Benefits $ 125,507,538 $ 138,408,211 $ 137,367,317 $ 146,171,618

Maintenance and Operations
Stationery a nd O ffice $ 2 20,515 $ 2 13,749 $ 2 14,150 $ 1 91,250 Multi-Media, Promos, Subscrpt. 8 09,815 7 59,504 5 84,389 4 55,719 Small Tools and Equipment 7 90,764 259,084 2 40,151 211,026 Uniforms and Clothing 4 58,854 5 96,753 418,250 3 69,750 Safety and Health 6 59,605 5 61,844 658,122 604,931 Maintenance and Construction 4 82,693 442,011 3 28,250 3 28,250 Agriculture 10 1,227 63,378 9 7,000 9 7,000
Electricity - Buildings & Fac. 8 86,363 9 16,336 580,020 580,020 Electricity - Power 3 64,680 324,763 2 81,800 2 81,800 Electricity - Street Lights 1,237,221 1 ,272,173 1,000,000 1,000,000 Gas 6 4,014 7 7,786 4 5,400 4 5,400
Water - Domestic 61,352 92,761 76,100 76,100 Water - Parks and Parkways 805,573 1 ,004,422 8 59,100 8 59,100 Waste Disposal 232,704 256,895 261,462 2 61,702 Janitorial and Housekeeping 5 85,629 628,738 6 90,243 6 90,243 Legal Advertising/Filing Fees 2 22,392 291,990 3 11,600 243,600 Advertising and Public Info. 1 9,168 12,263 14 ,300 7, 400 Telephone/Radio/Communications 1 ,017,966 9 13,232 8 10,089 8 10,089 Business Meetings 95,653 1 21,904 51,080 54,445 Mileage Reimbursement 1 ,735 2 ,051 3,300 3,300 Dues and Memberships 203,828 223,035 2 04,712 2 00,712

59City of Costa Mesa, California
suMMarIes of
fInancIal da ta
107
Summary of Appropriations by Account – General Fund (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Maintenance and Operations (Continued)
Board Member Fees 4 1,800 42 ,500 4 1,300 4 1,300 Professional Development 658,644 672,985 664,141 4 76,781 Buildings and Structures 4 05,414 3 29,926 2 76,913 237,163 Landscaping and Sprinklers 3 ,446,847 3 ,503,179 3,400,500 3,050,500 Automotive Equipment 2 ,159 3 ,603 - -
Office F urniture 11,614 - 2 ,000 2 ,000
Office E quipment 80,190 79,252 6 6,431 56,431 Other Equipment 1,061,746 1 ,220,810 9 27,150 6 05,150 Streets, Alleys and Sidewalks 1,726,929 285,455 3 71,610 3 71,610 Employment 20,399 1 7,092 2 6,000 1 6,000
Consulting 2 ,909,759 2 ,729,640 2 ,890,160 3 ,070,636 Legal 1 ,944,321 1 ,4 47,516 2 ,880,000 1 ,825,211 Engineering and Architectural 3 84,122 4 19,678 5 47,848 4 67,848 Financial & Information Svcs. 6 83,969 5 31,852 1 ,078,750 67 7,971 Medical and Health Inspection 192,811 282,744 228,100 226,100 Public Safety 2 ,818,556 3,001,614 3,202,920 3 ,156,320 Recreation 372,935 408,496 504,220 4 96,020
Sanitation 9 60 1 ,040 1,200 1,200
Principal Payments 2,486,391 2 ,607,704 3 ,450,000 3,550,000 Interest Payments 941,676 880,601 1,067,905 1,067,905 External Rent 8 05,389 6 69,327 965,742 993,909 Grants, Loans and Subsidies 1 ,304,743 1,308,543 1 ,287,994 1 ,267,994 Internal Rent Central Services 6 6,875 65 ,936 9 9,722 9 9,722 Internal Rent Postage 151,305 121,240 1 10,792 1 10,792 Internal Rent - Maintenance 8 84,300 8 84,300 884,300 884,300 Internal Rent - Repl Cost 4, 384,659 4,514,439 4, 514,439 4, 514,439 Internal Rent - Fuel 5 73,094 501,777 5 01,400 5 01,400 Internal Rent Genl Liability 2,069,259 2,069,259 2,389,209 2 ,897,902 Internal Rent Workers’ Comp 2 ,910,749 2,896,619 2 ,938,441 2 ,938,441 Internal Rent Unemployment 7 9,264 79,099 7 9,687 7 9,687 Taxes and Assessments 211,642 2 52,158 9 6,200 107,401 Contingency 457,722 2 14,679 5 00,000 -
Other Costs 3,588 6 ,692 1,600 1,600
Emergency Protective Measure 29,125 - - -
Subtotal Maintenance and Operations $ 43,444,708 $ 41,084,423 $ 43,726,192 $ 41,165,570

60 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
108
Summary of Appropriations by Account – General Fund (Excludes CIP) From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Account Description
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Fixed Assets
Land - 1 ,478,861 - -
Automotive Equipment 33,187 - - -
Office F urniture 4 2,847 14 ,085 1 2,900 7,900 Office E quipment 4,515 - - -
Other Equipment 1,676,877 2,146,728 2,951,363 2 ,796,163 Subtotal Fixed Assets $ 1,757,426 $ 3,639,674 $ 2, 964,263 $ 2,804,063 Transfers Out
Operating Transfers Out $ 1 2,432,270 $ 6 ,918,994 $ 2 ,797, 836 $ 9, 825,324 Subtotal Transfers Out $ 12,432,270 $ 6,918,994 $ 2,797,836 $ 9,825,324

TOTAL APPROPRIATIONS - GENERAL FUND $ 183,141,942 $ 190,051,302 $ 186,855,608 $ 199,966,575

61City of Costa Mesa, California
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Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
City Council
Council Member 7.00 7.00 7.00 7.00 7 .00
Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Total City Council 8.00 8.00 8.00 8.00 8.00

City Manager’s Office
City Manager 1. 00 1. 00 1. 00 1. 00 1.00
Assistant City Manager 1. 00 1. 00 1. 00 1. 00 1.00 Administrative Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Assistant to the City Manager 1. 00 2 .00 2 .00 2 .00 2.00 City Clerk 1. 00 1. 00 1. 00 1. 00 1.00
Community Outreach Worker ^ 2 .00 7.00 6 .00 7.00 7 .00 Community Outreach Supervisor 1. 00 1. 00 1. 00 1. 00 1.00 Deputy City Clerk 2 .00 2 .00 2 .00 2 .00 2.00 Deputy City Manager 1. 00 1. 00 1. 00 1. 00 1.00 Energy and Sustainability Services Manager - 1. 00 1. 00 1. 00 1.00 Executive Assistant to the City Manager 1. 00 1. 00 1. 00 1. 00 1.00 Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Graphics Designer 1. 00 1. 00 1. 00 1. 00 1.00 Human Resources Administrator 2 .00 2 .00 2 .00 2 .00 2.00 Human Resources Analyst ^ 4 .00 4 .00 3 .00 3 .00 3.00 Human Resources Manager 1. 00 1. 00 1. 00 1. 00 1.00 Human Resources Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Human Resources Technician 1. 00 1. 00 1. 00 1. 00 1.00 Management Aide 2 .00 1. 00 1. 00 1. 00 1.00 Management Analyst 3 .00 4 .00 4 .00 4 .00 4.00 Neighborhood Improvement Manager 1. 00 1. 00 1. 00 1. 00 1.00 Office S pecialist I I 1. 00 1. 00 1. 00 2 .00 2.00 Principal Human Resources Analyst 2 .00 2 .00 2 .00 2 .00 2.00 Public Affairs Manager 2 .00 3 .00 3 .00 3 .00 3.00 Real Property Manager 1. 00 - - - -
Senior Management Analyst ^ 3 .00 2 .00 1. 00 1. 00 1.00 Senior C ode E nforcement O fficer 1. 00 1. 00 1. 00 - - Video Production Coordinator 1. 00 1. 00 1. 00 1. 00 1.00 Video Production Specialist 2 .00 - - - -
Multimedia Specialist - 2 .00 2 .00 2 .00 2.00 Website Coordinator/ Programmer Analyst I ^ 1. 00 1. 00 - - - Total City Manager’s Office 43.00 49.00 45.00 46.00 46.00

Finance Department
Finance Director 1. 00 1. 00 1. 00 1. 00 1.00 Accountant 1. 00 1. 00 1. 00 1. 00 1.00
Accounting Specialist I 1. 00 1. 00 1. 00 1. 00 1.00 Accounting Specialist II 4 .00 4 .00 4 .00 4 .00 4.00 Accounting Supervisor 1. 00 - - - -
Administrative Assistant (CON) 1. 00 1. 00 1. 00 1.00 62 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
110
Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Assistant Finance Director 1. 00 1. 00 1. 00 1. 00 1.00 Budget and Purchasing Manager 1. 00 1. 00 1. 00 1. 00 1.00 Business License Inspector 1. 00 1. 00 1. 00 1. 00 1.00 Buyer 2 .00 2 .00 2 .00 2 .00 2.00
Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Financial Analyst 2 .00 2 .00 2 .00 2 .00 2.00 Finance Manager 1. 00 1. 00 1. 00 1. 00 1.00 Finance O fficer- A ccounting - 1. 00 1. 00 1. 00 1.00 Finance O fficer- P ayroll ( CON) - 1. 00 1. 00 1. 00 1.00 Finance O fficer- P urchasing - 1. 00 1. 00 1. 00 1.00 Finance O fficer- R evenue - 1. 00 1. 00 1. 00 1.00 Payroll Coordinator 1. 00 1. 00 1. 00 1. 00 1.00 Payroll Supervisor 1. 00 - - - -
Permit Processing Specialist 1. 00 1. 00 1. 00 1. 00 1.00 Purchasing Supervisor 1. 00 - - - -
Revenue Supervisor 1. 00 - - - -
Senior Accountant 1. 00 1. 00 1. 00 1. 00 1.00 Senior Budget Analyst 2 .00 2 .00 2 .00 2 .00 2.00 Total Finance Department 25. 00 26.00 26.00 26.00 26.00 Parks And Community Services Department
Parks and Community Services Director 1. 00 1. 00 1. 00 1. 00 1.00 Arts Specialist 1. 00 1. 00 1. 00 1. 00 1.00 Community Outreach Worker 1. 00 1. 00 1. 00 1. 00 1.00 Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Fairview Park Administrator 1. 00 1. 00 1. 00 1. 00 1.00 Fairview Park Senior Maintenance Technician 1. 00 1.00 Maintenance Worker 1. 00 1. 00 1. 00 - -
Office S pecialist I I* 1. 00 1. 00 1. 00 1. 00 1.00 Recreation Coordinator* 4 .00 4 .00 4 .00 4 .00 4.00 Recreation Manager 1. 00 1. 00 1. 00 1. 00 1.00 Recreation Specialist 7.00 8 .00 8 .00 8 .00 8.00 Recreation Supervisor 3 .00 3 .00 3 .00 3 .00 3.00 Senior Management Analyst 1.00 1. 00 1. 00 1. 00 1.00 Senior Recreation Supervisor 2 .00 2 .00 2 .00 2 .00 2.00 Total Parks and Community Svcs Department 25. 00 26.00 26.00 26.00 26.00

Information Technology Department
Information Technology Director 1. 00 1. 00 1. 00 1. 00 1.00 Information Technology Manager 2 .00 2 .00 2 .00 2 .00 2.00 Computer Operations & Networking Sup. 1. 00 1. 00 1. 00 1. 00 1.00 Cyber Security Analyst 1. 00 1. 00 1. 00 1. 00 1.00 Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Network Administrator 5 .00 5 .00 5 .00 5 .00 5.00 Office S pecialist I I 1. 00 1. 00 1. 00 1. 00 1.00 Programmer Analyst II 4 .00 4 .00 4 .00 4 .00 4.00 Senior Management Analyst 1. 00 1. 00 1. 00 1. 00 1.00 Senior Programmer Analyst 4 .00 4 .00 4 .00 4 .00 4.00 63City of Costa Mesa, California
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Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Systems & Programming Supervisor 1. 00 1. 00 1. 00 1. 00 1.00 Total Information Technology Department 22.00 22.00 22.00 22.00 22.00

Police Department
Police Chief 1. 00 1. 00 1. 00 1. 00 1.00
Deputy Police Chief 1. 00 1. 00 1. 00 1. 00 1.00 Administrative Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Account Specialist II 1. 00 1. 00 1. 00 1.00 Animal Services Coordinator 1. 00 1. 00 1. 00 1.00 Animal C ontrol O fficer 3 .00 3 .00 3 .00 3 .00 3.00 Animal Control Supervisor 1. 00 1. 00 1. 00 1. 00 1.00 Civilian Investigator 1. 00 1. 00 1. 00 1. 00 1.00 Communications Installer 1. 00 1. 00 1. 00 1. 00 1.00 Communications Officer 1 1.00 1 1.00 1 1.00 1 1.00 11.00 Communications Supervisor 4 .00 4 .00 4 .00 4 .00 4.00 Community Services Specialist 7.00 7.00 7.00 7.00 7 .00 Court Liaison 1. 00 1. 00 1. 00 1. 00 1.00 Crime Analyst 2 .00 2 .00 2 .00 2 .00 2.00 Crime Prevention Specialist 1. 00 1. 00 1. 00 1. 00 1.00 Crime Scene Investigation Supervisor 1. 00 1. 00 1. 00 1. 00 1.00 Crime Scene Specialist 4 .00 4 .00 4 .00 4 .00 4.00 Custody O fficer** 10 .00 10 .00 1 1.00 1 1.00 10.00 Custody Supervisor** 1. 00 1. 00 1. 00 1. 00 2.00 Electronics Technician 1. 00 1. 00 1. 00 1. 00 1.00 Executive Assistant 2 .00 2 .00 2 .00 2 .00 2.00 Emergency Services Manager * 0 .50 0 .50 0 .50 0 .50 0.50 Office S pecialist I I 1. 00 1. 00 1. 00 1. 00 1.00 Park Ranger*** 6 .00 7.00 7.00 7.00 6.00
Permit Processing Specialist - 1. 00 1. 00 1. 00 1.00 Police Captain 2 .00 2 .00 2 .00 2 .00 2.00 Police Lieutenant 7.00 7.00 7.00 7.00 7 .00 Police O fficer 1 07.00 1 07.00 1 07.00 1 07.00 107.00 Police Records Bureau Supervisor 1. 00 1. 00 1. 00 1. 00 1.00 Police Records Shift Supervisor 3 .00 3 .00 3 .00 3 .00 3.00 Police Records and Property & Evidence Manager 1. 00 1. 00 1. 00 1. 00 1.00 Police Sergeant 2 2.00 2 2.00 2 2.00 2 2.00 22.00 Police Training Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Property Evidence Specialist 2 .00 3 .00 1. 00 1. 00 1.00 Property Evidence Supervisor 1. 00 1. 00 1. 00 1. 00 1.00 Public Affairs Manager 1. 00 1. 00 1. 00 1. 00 1.00 Range Master 1. 00 1. 00 1. 00 1. 00 1.00
Recreation Coordinator 1. 00 - - - -
Senior Property & Evidence Specialist 2 .00 2 .00 2.00 Senior Public Safety Dispatcher 6 .00 6 .00 6 .00 6 .00 6.00 Senior Communications Supervisor 1. 00 1. 00 1. 00 1. 00 1.00 Senior Management Analyst 1. 00 1. 00 1. 00 1. 00 1.00 64 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
112
Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Senior P olice O fficer 2 .00 2 .00 2 .00 2 .00 2.00 Senior Police Records Technician 16.00 16.00 16.00 16.00 1 6.00 Telecommunications Manager 0 .50 0 .50 0 .50 0 .50 0.50 Total Police Department 238.00 242.00 243.00 243.00 242.00 **Reclassification of one Custody Officer to C ustody Supervisor FY 2 026-27 *** Reduction to one Park Ranger postion
Fire And Rescue Department
Fire Chief 1. 00 1. 00 1. 00 1. 00 1.00
Assistant Fire Chief/Operations - sworn 1. 00 1. 00 1. 00 1. 00 1.00 Assistant Fire Chief/Community Risk Reduction - non
sworn 1. 00 1. 00 1. 00 1. 00 1.00
Assistant Fire Marshal 2 .00 2 .00 2 .00 2 .00 2.00 Code E nforcement O fficer 1. 00 1. 00 1. 00 1. 00 1.00 Battalion Chief 3 .00 3 .00 3 .00 3 .00 4.00 Emergency Medical Services Coordinator 1. 00 1. 00 1. 00 1. 00 - Emergency Services Manager * 0 .50 0 .50 0 .50 0 .50 0.50 Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Fire Captain 1 8.00 1 8.00 1 8.00 1 8.00 1 8.00 Fire Captain - Administration/Training/PIO 1. 00 1. 00 1. 00 1. 00 1.00 Fire Captain - Administration/EMS 1. 00 1. 00 1. 00 1. 00 1.00 Fire Engineer 1 8.00 1 8.00 1 8.00 1 8.00 1 8.00 Fire Protection Specialist 3 .00 3 .00 3 .00 3 .00 3.00 Firefighter 42 .00 42 .00 42 .00 42 .00 42 .00 Office S pecialist I I 1. 00 1. 00 1. 00 1. 00 1.00 Senior Manager Analyst 1. 00 1. 00 1. 00 1. 00 1.00 Telecommunications Manager * 0 .50 0 .50 0 .50 0 .50 0.50 Total Fire Department 97.00 97.00 97.00 97.00 97.00 * FY 2026-27 Emergency Mediacl Services Coordinator reclassifed to a Battalion Chief

Development Services Department
Economic & Development Services Director 1. 00 1. 00 1. 00 1. 00 1.00 Administrative Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Assistant Development Services Director 1. 00 1. 00 1. 00 1. 00 1.00 Assistant Planner 4 .00 4 .00 4 .00 4 .00 4.00 Associate Planner 3 .00 3 .00 3 .00 3 .00 3.00 Building/Combination Bldg. Inspector 4 .00 4 .00 4 .00 - - Building Inspector I/II 4 .00 4.00
Building Official 1. 00 1. 00 1. 00 1. 00 1.00 Building Technician II 3 .00 4 .00 4 .00 4 .00 4.00 Chief of Code Enforcement * 1. 00 1. 00 1. 00 1. 00 - Chief of Inspection 1. 00 1. 00 1. 00 1. 00 1.00 Chief Plans Examiner 1. 00 1. 00 1. 00 1. 00 1.00 Code E nforcement O fficer * 7.00 7.00 7.00 7.00 7 .00 Code Enforcement Manager 1. 00 1.00
Community Improvement Manager 1. 00 1. 00 1. 00 - - Economic Development Administrator 1. 00 1. 00 1. 00 1. 00 1.00 Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 65City of Costa Mesa, California
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Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Grant Administrator 1. 00 1. 00 1. 00 1. 00 1.00 Management Analyst 1. 00 1. 00 1. 00 1. 00 1.00 Office S pecialist I I * 1. 00 1. 00 1. 00 1. 00 1.00 Permit Processing Specialist 3 .00 3 .00 3 .00 3 .00 3.00 Planning Manager 2 .00 2.00
Planning and Sustainable Development Manager 1. 00 2 .00 2 .00 - - Plan Check Engineer 3 .00 3 .00 3 .00 3 .00 3.00 Principal Planner 2 .00 2 .00 2 .00 2 .00 2.00 Senior C ode E nforcement O fficer 2 .00 2 .00 2 .00 2 .00 2.00 Senior Combination Inspector 1. 00 1. 00 1. 00 1. 00 1.00 Senior Management Analyst 2 .00 2 .00 2 .00 2 .00 2.00 Senior Permit Technican 1.00
Senior Planner 2 .00 3 .00 3 .00 3 .00 3.00 Total Development Services Department 50.00 53.00 53.00 53.00 53.00

Public Works Department
Public Works Director 1. 00 1. 00 1. 00 1. 00 1.00 Active Transportation Coordinator 1. 00 1. 00 1. 00 1. 00 1.00 Administrative Assistant 3 .00 3 .00 3 .00 3 .00 3.00 Assistant Engineer 4 .00 4 .00 4 .00 4 .00 4.00 Assistant City Engineer 1. 00 1. 00 1. 00 1. 00 1.00 Associate Engineer 8 .00 8 .00 8 .00 8 .00 8.00 City Engineer 1. 00 1. 00 1. 00 1. 00 1.00 Construction Inspector 3 .00 3 .00 3 .00 3 .00 3.00 Deputy Director of Public Works 1. 00 1. 00 1. 00 1. 00 1.00 Energy and Sustainability Service Manager 1. 00 - - - - Engineering Technician II 1. 00 1. 00 1. 00 1. 00 1.00 Engineering Technician III * 5 .00 5 .00 5 .00 5 .00 5.00 Equipment Mechanic I 1. 00 1. 00 1. 00 - - Equipment Mechanic II 2 .00 2 .00 2 .00 2 .00 2.00 Equipment Mechanic III 2 .00 2 .00 2 .00 3 .00 3.00 Executive Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Facilities Maintenance Technician * 2 .00 2 .00 2 .00 2 .00 2.00 Lead Facilities Maintenance Technician 2 .00 2 .00 2 .00 2 .00 2.00 Lead Maintenance Worker 7.00 7.00 7.00 7.00 7 .00 Lead Equipment Mechanic 1. 00 1. 00 1. 00 1. 00 1.00 Maintenance Assistant 1. 00 1. 00 1. 00 1. 00 1.00 Maintenance Services Manager 1. 00 1. 00 1. 00 1. 00 1.00 Maintenance Superintendent 3 .00 3 .00 3 .00 3 .00 3.00 Maintenance Supervisor * 5 .00 5 .00 5 .00 5 .00 5.00 Maintenance Worker 4 .00 4 .00 4 .00 4 .00 4.00 Management Analyst 1. 00 1. 00 1. 00 - -
Office S pecialist I I 2 .00 2 .00 2 .00 2 .00 2.00 Senior Engineer * 4 .00 4 .00 4 .00 4 .00 4.00 Senior Maintenance Worker 6 .00 6 .00 6 .00 6 .00 6.00 Senior Management Analyst 2 .00 2 .00 2 .00 3 .00 3.00 Storekeeper 2 .00 2 .00 2 .00 2 .00 2.00
66 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
114
Four-Year Personnel Summary by Department
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027

FY 23-24
Adopted
FY 24-25
Adopted
FY 25-26
Adopted
FY 25-26
Amended
FY 26-27
Proposed
Transportation Services Manager 1. 00 1. 00 1. 00 1. 00 1.00 Total Public Works Department 80.00 79.00 79.00 79.00 79.00

Total Full-time Employees 588.00 602.00 599.00 600.00 599.00

Part-Time Employees FTE’s (Full-Time Equivalents)

City M anager’s Office 8 .32 8 .32 8 .32 7 .32 7.32 Finance Department - 0.75 0.75 0.75 0 .75
Parks and Community Services 6 3.82 6 2.57 6 2.57 6 2.57 62.57 Police Department 1 6.86 14 .75 2 2.25 2 2.25 22.25 Fire and Rescue Department 2 .25 2 .25 2 .25 2 .25 2.25 Development Services Department 5 .34 5 .34 5 .34 5 .34 5.34 Public Works Department 5.50 6 .00 6 .00 6 .00 6.00

Total Part-time FTEs 102.09 99.98 107.48 106.48 106.48

Total Citywide FTEs 6 90.09 704.09 706.48 706.48 705.48 67City of Costa Mesa, California
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Left Blank

City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
116
CityCouncil
City
Council
117
City Council
Mayor (1)
City Council Members (6)
Executive Assistant
Access, Building, Fire and Housing
Board of Appeals Committee
Housing and Public Service Grants
Committee
Mobile Home Park Advisory
Committee
Planning Commission
Active Transportation Committee
Finance and Pension Advisory
Committee
Fairview Park Steering Committee
Traﬃc Impact AD HOC Committee
Animal Services Committee
Arts Commission
Historical Preservation Committee
Park and Community Services
Commission
Citizens of Costa Mesa
Proposed Budget for
Fiscal Year 2026-2027
70 City of Costa Mesa, California 118
The Mayor and City Council serve as the elected legislative and policy-setting body of the City. City Council duties include establishing goals and policies, enacting legislation, adopting the City’s operating and capital budget, and appropriating the funds necessary to provide services to the City’s residents, businesses, and visitors. The City Council also participates in a wide variety of community and regional activities and spends a considerable amount of time interacting with residents, business owners, and community stakeholders. The City Council also serves as the governing board for the Housing Authority, Public Financing Authority, and Financing Authority.

City Council – 10100
City Council – 50110
This program supports City Council activities. It includes the salaries of the City Council – one Mayor, six Council Members, and one Executive Assistant. The Executive Assistant provides administrative support to the Mayor and City Council Members.

71City of Costa Mesa, California
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Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he O ffice o f t he C ity C ouncil i s $ 968,834, a n i ncrease o f $ 14,691, o r 2 p ercent, compared to the adopted budget for Fiscal Year 2025-26. The increase is primarily attributed to the proposed labor memorandum o f u nderstanding ( MOU). T he C ity C ouncil’s s alaries a nd b enefits b udget f unds t he c ompensation of one (1) Mayor, six (6) council members, and one (1) Executive Assistant position.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

CITY COUNCIL BY FUNDING SOURCE

General Fund - 101 $ 7 50,577 $ 7 97,518 $ 9 54,143 $ 9 68,834

Total City Council $ 7 50,577 $ 7 97,518 $ 954,143 $ 968,834 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

CITY COUNCIL BY PROGRAM
ADMINISTRATION - 10100

City Council - 50110
Salaries a nd B enefits $ 5 72,515 $ 6 03,902 $ 7 90,962 $ 8 05,653 Maintenance and Operations 1 78,062 193,616 1 61,181 161,181 Fixed Assets - - 2 ,000 2,000
Subtotal City Council $ 7 50,577 $ 7 97,518 $ 954,143 $ 968,834

Emergency Services - 51040

TOTAL CITY COUNCIL

Salaries a nd B enefits $ 5 72,515 $ 6 03,902 $ 7 90,962 $ 8 05,653 Maintenance and Operations 1 78,062 193,616 1 61,181 161,181 Fixed Assets - - 2 ,000 2,000

Total City Council $ 7 50,577 $ 7 97,518 $ 954,143 $ 968,834 Proposed Budget for
Fiscal Year 2026-2027
72 City of Costa Mesa, California 120

From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY COUNCIL BY ACCOUNT: ALL FUNDS
Salaries and Benefits
Regular Salaries - Non-Sworn $ 1 50,595 $ 1 26,804 $ 2 20,144 $ 2 16,159 Overtime 5 ,362 2 ,850 5 00 500
Holiday Allowance 701 - - -
Other Compensation - - 470 -
Cafeteria Plan 251,535 2 38,147 320,436 3 20,436 Medicare 5 ,111 4 ,776 3,199 5,739
Retirement 1 59,211 231,324 246,213 2 62,819 Subtotal Salaries & Benefits $ 572,515 $ 603,902 $ 790,962 $ 8 05,653

Maintenance and Operations
Stationery a nd O ffice $ 1 ,353 $ 1 ,916 $ 2 ,600 $ 2 ,600 Multi-Media, Promos, Subscrpt. 1,951 4,220 4 ,000 4,000 Small Tools and Equipment 2,071 4,618 2 ,000 2,000 Uniforms and Clothing 5 00 1 ,505 5 00 500
Safety and Health 4 90 4 80 4 80 4 80
Business Meetings 2 3,320 29,062 15,000 1 5,000 Dues and Memberships 123,232 128,538 115,545 1 15,545 Professional Development 2 0,852 2 0,229 1 8,100 1 8,100 Office E quipment 827 1 ,272 - -
External Rent 1 ,700 1,775 1 ,700 1,700
Internal Rent Central Services - - 1,224 1 ,224 Internal Rent Postage 1 ,766 1 32 3 2
Subtotal Maintenance & Operations $ 178,062 $ 193,616 $ 161,181 $ 161,181

Fixed Assets
Other Equipment $ - $ - $ 2 ,000 $ 2 ,000
Subtotal Fixed Assets $ - $ - $ 2,000 $ 2,000

Total City Council $ 750,577 $ 7 97,518 $ 954,143 $ 968,834 73City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY COUNCIL BY ACCOUNT: GENERAL FUND ONLY
Salaries and Benefits
Regular Salaries - Non-Sworn $ 1 50,595 $ 1 26,804 $ 2 20,144 $ 2 16,159 Overtime 5,362 2,850 500 5 00
Holiday Allowance 701 - - -
Other Compensation - - 47 0 -
Cafeteria Plan 2 51,535 2 38,147 3 20,436 320,436 Medicare 5,111 4,776 3 ,199 5 ,739
Retirement 159,211 2 31,324 2 46,213 262,819 Subtotal Salaries & Benefits $ 572,515 $ 603,902 $ 790,962 $ 805,653

Maintenance and Operations
Stationery a nd O ffice $ 1 ,353 $ 1 ,916 $ 2 ,600 $ 2 ,600 Multi-Media, Promos, Subscrpt. 1 ,951 4 ,220 4,000 4 ,000 Small Tools and Equipment 2 ,071 4 ,618 2,000 2 ,000 Uniforms and Clothing 500 1,505 500 5 00
Safety and Health 490 480 480 480
Business Meetings 23,320 2 9,062 1 5,000 15,000 Dues and Memberships 1 23,232 1 28,538 1 15,545 1 15,545 Professional Development 20,852 2 0,229 18,100 18,100 Office E quipment 8 27 1,272 - -
External Rent 1,700 1 ,775 1,700 1 ,700
Internal Rent Central Services - - 1 ,224 1,224 Internal Rent Postage 1,766 1 3 2 32
Subtotal Maintenance & Operations $ 1 78,062 $ 193,616 $ 161,181 $ 161,181

Fixed Assets
Other Equipment $ - $ - $ 2 ,000 $ 2 ,000
Subtotal Fixed Assets $ - $ - $ 2,000 $ 2,000
Transfers Out

Total City Council $ 750,577 $ 797,518 $ 954,143 $ 9 68,834 Proposed Budget for
Fiscal Year 2026-2027
74 City of Costa Mesa, California 122
City Manager’sOffice
City Manager’s
Office
123

1.0 FTE - City Manager

1.0 FTE - Executive Assistant to the City Manager

1.0 FTE - Energy & Sustainability Services Manager

2.0 FTE - Public Affairs Manager

2.0 FTE - Assistant to the City Manager

1.0 FTE - Public Affairs Manager

1.0 FTE - Graphics Designer

1.0 FTE - Oﬃce Specialist II

1.0 FTE - Video Production Coordinator

2.0 FTE - Multimedia Specialist

3.25 FTE - Part-Time

1.0 FTE - HR Manager

2.0 FTE - HR Administrator

2.0 FTE - Principal HR Analyst

3.0 FTE - HR Analyst

1.0 FTE - HR Assistant

1.0 FTE - HR Technician

0.75 FTE - Part-Time

1.0 FTE - City Clerk

1.0 FTE - Administrative Assistant

1.0 FTE - Management Analyst

2.0 FTE - Deputy City Clerk

1.0 FTE - Oﬃce Specialist II

1.0 FTE - Part-Time

1.0 FTE - Assistant City Manager

1.0 FTE - Executive Assistant

1.0 FTE - Senior Management Analyst

1.0 FTE - Neighborhood Improvement Manager

1.0 FTE- Management Analyst

1.0 FTE - Community Outreach Supervisor

6.0 FTE - Community Outreach Worker

1.0 FTE - Senior Code Enforcement Oﬃcer

2.32 FTE - Part-Time

1.0 FTE - Deputy City Manager

1.0 FTE - Management Analyst (Special Events)

1.0 FTE - Management Analyst (Constituent
Services)

1.0 FTE- Management Aide (Constituent Services)
Proposed Budget for
Fiscal Year 2026-2027
76 City of Costa Mesa, California 124
The C ity M anager’s O ffice i s a G eneral G overnment S upport f unction. T he D epartment c omprises o f f our ( 4) divisions, s plit i nto d ifferent p rograms a nd h as 4 6 f ull-time s taff m embers. P art-time s taffing c onsists o f 7 .32 full-time equivalents. The divisions are as follows:
■ Administration
● Constituent Services Team
● Communications and Marketing
● Homeless Outreach
● Energy and Sustainability
● Legislative Affairs
■ City Clerk
■ Human Resources
■ Risk Management
Administration — 11100
Administration – 50001
The C ity M anager’s O ffice c oordinates a nd d irects t he C ity’s f unctions w ithin t he f ramework o f p olicy e stablished by t he C ity C ouncil. T he d uties o f t he C ity M anager’s O ffice i nclude: s ustainability-related e fforts, p olicy implementation, budget development and strategic planning, coordinating the preparation of City Council agendas, assisting with the development of City Council’s goals and objectives, and keeping the City Council apprised of important c ommunity i ssues. T he O ffice p rovides l eadership a nd d irection t o t he o ther C ity d epartments a nd i s responsible for ensuring the delivery of quality services to its constituents and business communities.

The C ity M anager’s O ffice i s r esponsible f or r epresenting t he C ity’s i nterests a t t he l ocal, s tate, a nd f ederal l evel through c oordination w ith t he C ity’s c orresponding e lected offi cials a nd p reparation o f l etters o f p osition o n various legislation.

Constituent Services – 50110
The Constituent Services Team works closely with the City Council to respond to constituent needs, gather information to address important community issues, and provide support at various special events and community meetings. The team responds to all City Council requests and coordinates with different departments to ensure that the needs of the Council Members are being met.

Communications and Marketing – 51050
The Communication and Marketing division specializes in ensuring quality communication, both internally and externally. The division manages internal communications, media relations, and public information and education.

The division utilizes a variety of informational platforms, such as the City website, the City news blog, social media networks, and traditional media, such as television, newsletters, and print media, to maintain the City’s branding throughout the community. The division manages in-house communications, including video production and editing, graphic design, and mail, print, and binding services.

Energy and Sustainability - 20240
The Energy and Sustainability division plans, develops, and executes sustainability initiatives, including energy conservation a nd e fficiency, c lean e nergy g eneration, e lectrification o f t ransportation, z ero e mission C ity fl eet, expansion of electric vehicle (EV) charging stations, solid waste management, water conservation, urban greening, greenhouse gases (GHG) reduction and promoting green economy and workforce among others. The division provides leadership and support to identify Citywide sustainability focus areas, programs and policies that are practical, innovative and align with City Council’s Goals and Priorities. The division works in tandem with Legislative Affairs to identify and prioritize sustainability projects, builds internal and external partnerships, 77City of Costa Mesa, California
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secures f unding/ fi nancing a nd i mplements p rojects. F urthermore, t he d ivision l eads o utreach a nd e ducational efforts, including organizing and attending community events and hosting internal and external workshops that promote sustainability, climate resilience and environmental protection in Costa Mesa.

City Clerk – 11200
Elections – 50120
As t he l ocal e lections offi cial, t he C ity C lerk c onducts t he G eneral M unicipal E lection b y g overning t he fi lings o f candidate nominations, initiatives, ballot measures, referendums, and recall actions. The City Clerk is the Filing Officer for the City and maintains filings required by the Political Reform Act. The City Clerk manages the filing of campaign fi nancial s tatements a nd C onflicts o f I nterest S tatements, i n a ccordance w ith t he F air P olitical P ractices Commission.

Council Meetings – 50410
The role of the City Clerk includes serving as Clerk of the City Council and Secretary to the Housing Authority. As the B rown Ac t offi cial, t he C lerk i s r esponsible f or p reparing a nd r eviewing a gendas f or a ll m eetings, m anaging records pertaining to Council legislative actions and proceedings, minutes, ordinances, resolutions, public notices and indices thereof. The City Clerk manages the concierge services in the City Hall lobby, which is responsible for greeting the public, checking guests in, and answering the main telephone line to City Hall.

Public Records – 50420
As t he P ublic R ecords Ac t offi cial, C ustodian o f R ecords a nd C ity A rchivist, t he C lerk i s t he a dministrator f or offi cial city documents and records, including indexing, preservation and archiving programs, retention schedules, public records requests and responses, and subpoenas for records. The City Clerk is responsible for the management of the L aserfiche E lectronic D ocument I maging S ystem, a d atabase d esigned t o p rovide t he p ublic g reater a ccess t o all public documents.

Human Resources — 14100
Recruitment and Selection – 50610
Human Resources Administration provides a full range of traditional and core human resources services that include: r ecruitment a nd s election, c lassification a nd c ompensation s ystems, e mployee d evelopment a nd t raining, and labor/employee relations. These comprehensive services are provided in compliance and as mandated by Federal and State labor laws, Personnel Rules and Regulations, and current Memorandum of Understandings (MOUs).

Employee Benefits Administration – 5 0630
Administers g roup h ealth a nd w elfare b enefits a nd r etirement p lans f or a ctive e mployees a nd r etirees. E valuates and m akes r ecommendations o n w ays t o i mprove b enefits, s uch a s u tilizing w ellness p rograms, fl exible s pending accounts a nd l ong-term disability i nsurance; oversees r equired/optional i ndustrial m edical e xaminations; and t he Employee A ssistance P rogram ( EAP). S erves a s s taff/advisor t o B enefits R eview C ommittee c onsisting o f l abor and m anagement r epresentatives w ho m eet t o r eview a nd d iscuss r elevant i ssues r elated t o e mployee b enefits/ programs a nd a ppropriate c ost-effective s pending o f b enefit d ollars. M anages t he C ity E mployee H ealth a nd Wellness Program. Monitors and ensures compliance with Federal, State and City leave programs such as the Family Medical Leave Act (FMLA) and California Family Rights Act (CFRA), as well as Fair Employment & Housing Act (FEHA), and Americans with Disabilities Act (ADA).

Proposed Budget for
Fiscal Year 2026-2027
78 City of Costa Mesa, California 126
Risk Management — 14400
Risk Management Administration – 50661
Procures and administers the City’s comprehensive commercial insurance protection program. Includes property inspections a nd a ppraisals a s p art o f a c omprehensive r eal a nd p ersonal p roperty i nsurance p rogram; e valuate levels of coverage for appropriate protection of assets.

Liability – 50662
Evaluates a nd m onitors t he C ity’s r isk o f l oss, m inimizing t he fi nancial i mpact o f s uch r isks t o t he l owest f easible level; a nd p rocures a nd a dministers t he C ity’s s elf-insured g eneral l iability a nd e nvironmental i nsurance p rograms.

Claims against the City are jointly handled with the City’s third-party administrator or internally as appropriate.

Includes l oss c ontrol p rogram t hat i dentifies a reas o f c oncerns a nd a cts t o m itigate f uture i ncidents. S erves a s staff/advisors to the City’s Safety Coordinating Committee consisting of joint labor-management representatives.

Provides staff support to the City’s Insurance Committee.

Workers Compensation – 50663
Proactively administers safety and wellness programs for employees as well as the self-insured Workers’ Compensation Program and the Occupational Injury/Illness Prevention Plan. Maintains oversight of the third-party workers’ compensation claims administrator and consultants for workplace safety, ergonomics, and indoor air quality. Administers and coordinates work-related disability compliance and interactive process, physical and fitness-for-duty e xaminations a nd i nfection c ontrol p rogram. P rovides t raining t o d epartments t o a ssist i n c ost containment/appropriate use of this program.

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Fiscal Year 2025-26 Accomplishments
■ The C ity f unded $ 200,000 i n c ontract l egal a ssistance s ervices a nd c reated a l egal a ssistance f und t o s upport families in need and established a fund for the public to contribute monetary donations for impacted families needing assistance.
■ The C ity m ade fi nancial d onations t otaling $ 100,000 s upporting t wo l ocal n on-profits i n p roviding a ssistance with food, utilities, and rent for residents in need.
■ The City facilitated the acquisition of 778 Shalimar and assisted in preparing the building for demolition. ■ The City enhanced public safety for participants and visitors of City Council meetings by implementing metal detector screening and bag inspections.
■ The C onstituent S ervices t eam d eveloped t he C osta M esa C ARES R esources, w hich i dentifies r eferral p athways to the community members in need of food, shelter, and legal resources. ■ The Community Relations and Constituent Services team made the Costa Mesa CARES resource accessible via website, social media, bus shelter advertisement and in-person distribution. ■ The Community Relations team assisted Public Works in ridership for the “Let’s Go Costa Mesa” free rideshare program to improve community mobility access to education, employment, medical, and retail locations. ■ The Community Relations team worked with Development Services to implement the “Let’s Do Business” awareness campaign to connect local businesses with City service contract opportunities. ■ The C ommunications t eam c oordinated w ith N ewport M esa U nified S chool D istrict Y outh E ngagement w ith real-world learning opportunities with City projects for students. ■ The Communications team enhanced public outreach efforts in English and Spanish on key community issues such as Rental Assistance, Waste Management, and Residential Parking. ■ The Communications team conducted targeted marketing and outreach campaigns to engage hard-to-reach communities in city initiatives through mailers, social media, door-to-door canvassing, and in-person events. ■ The Communications team provided timely, accessible City communications through multiple platforms, including s ocial m edia, p ress r eleases, b rochures a nd fl yers, C ity H all S napshot, t he C osta M esa M inute a nd t he launch of Let’s Talk Costa Mesa.
■ The Communications team expanded the City’s digital and social media presence across Facebook, X (Twitter), Instagram, Nextdoor, Nixle, YouTube, LinkedIn, and the City’s in-house podcast and is currently on pace to project a 20% increase over social media viewership.
■ The Costa Mesa Television team (CMTV 3) team launched a new “interview” format series for social media called “Let’s Talk Costa Mesa/Hablemos Costa Mesa.” The series will feature subject matter experts from various city departments providing details about important initiatives, services and upcoming events to the public via Costa Mesa’s social media platforms.
■ The Costa Mesa Television team (CMTV 3) earned two National NATOA Government Programming Awards for excellence in City programming by Costa Mesa Television. ■ The Legislative Affairs Team, with the help of Townsend Public Affairs, helped secure federal House of Representatives Appropriations totaling $1.29 million for critical projects. ■ The L egislative A ffairs T eam, w ith t he h elp o f T ownsend P ublic A ffairs s ecured $ 1.04 m illion f rom t he D epartment of Justice for the Costa Mesa Police Department’s Real Time Crime Center. ■ The L egislative A ffairs T eam, w ith th e h elp o f T ownsend P ublic A ffairs s ecured $ 250,000 f rom th e D epartment of Housing and Urban Development for the Costa Mesa Senior Center renovation which includes Roof, and HVAC Replacement.
■ The L egislative A ffairs t eam a dopted t he C ity’s fi rst L egislative P latform t o s upport a nd a dvance C ity C ouncil goals and initiatives.
■ The Legislative Affairs team developed a draft amendment to the Tenant Protection Ordinance and provided a 2025 update on tenant support services and at-fault eviction tracking. ■ The Legislative Affairs team supported the ongoing development of the Fairview Development Center Visioning Project.
■ The Legislative Affairs team presented an analysis of the Long Beach Self-Checkout Ordinance at the council’s request and developed a draft Costa Mesa Ordinance for consideration.

Proposed Budget for
Fiscal Year 2026-2027
80 City of Costa Mesa, California 128
■ The Special Events team planned, organized, coordinated and saw an increase in attendance in signature City events, including Independence Day, Snoopy House, State of the City, Love Costa Mesa Day, Hispanic Heritage Month Celebration, and the Earth Day Festival.
■ The Special Events team celebrated major City investments through ribbon-cutting events and groundbreaking events, including Brentwood P ark, Fire Station Training Tower, Ketchum-Libolt Park, and Shalimar Park. ■ The Homeless and Housing Division oversaw the construction and lease-up of the Mesa Vista Apartments Homekey project (formerly Motel 6), delivering 40 Permanent Supportive Housing units for individuals experiencing homelessness and 46 Very Low-Income units for Costa Mesa seniors. ■ The Homeless and Housing Division facilitated the acquisition and ongoing construction of the Avon River Apartments Homekey project (formerly Travelodge), which will provide 76 Permanent Supportive Housing units for individuals experiencing homelessness.
■ The Homeless and Housing Division managed procurement for shelter operations and kitchen services to support individuals experiencing homelessness.
■ The Homeless and Housing Division partnered with the City of Irvine to lease unused beds at the Bridge Shelter, maximizing regional shelter capacity.
■ The Homeless and Housing Division successfully hosted a Network for Homeless Solutions Town Hall, informing City Council and the public about the City’s comprehensive system of care for individuals experiencing homelessness.
■ The Homeless and Housing Division and Constituent Services provided an update on support services and assistance for residents and tracking of at-fault evictions. ■ The H uman R esources D ivision p artnered w ith t he P olice D epartment t o a chieve f ull s taffing i n s worn r anks for t he fi rst t ime i n o ver 1 5 y ears b y c onducting o ngoing r ecruitments f or P olice R ecruits, P olice Ac ademy Graduates, a nd s worn P olice O fficers a nd p romotional e xaminations f or a ll s worn r anks, i ncluding P olice Sergeant, Police Lieutenant and Police Captain.
■ The H uman R esources D ivision p artnered w ith t he F ire D epartment t o c onduct a l arge-scale F irefighter a nd Firefighter/Paramedic recruitment, which brought over 100 more applicants than prior recruitments. ■ The Human Resources Division worked with the Fire Department to conduct promotional examinations for Fire Engineer and Fire Captain positions.
■ The Human Resources Division partnered with the various departments to conduct recruitments for key executive positions, including Assistant Development Services Director, Energy & Sustainability Manager and Assistant Finance Director.
■ The Human Resources Division advanced development of Costa Mesa University, the City’s leadership, training, and mentoring program for employees across all departments including creating a comprehensive Supervisor’s Resource Portal – a one-stop hub offering videos, templates, workbooks, links to upcoming training and other supervisory resources.
■ The Human Resources Division expanded the use of NeoGov’s Learn module to allow employees to view and sign up for training online, including coordinating Citywide cybersecurity training in partnership with the IT Department.
■ The Human Resources Division piloted NeoGov’s Perform module with the Police Department to allow supervisors and employees to submit and view performance evaluations in a new electronic format. ■ The Human Resources Division facilitated employment law and employee relations training, including supervisory, performance management, and mandated harassment prevention training, through the Orange County Human Resources Consortium and implemented internal small-group training sessions to enable more in-depth, collaborative discussions with supervisors.
■ The Human Resources Division initiated negotiations for successor Memoranda of Understanding (MOUs) with the Costa Mesa City Employees Association, Costa Mesa Police Association, and Costa Mesa Police Management Association.
■ The Human Resources Division continues to promote employee health, safety and well-being as part of the City’s Employee Wellness Program, including offering monthly on-site Employee Assistance Program Counselor wellness seminars, health screenings and various fitness a ctivities. ■ The H uman R esources D ivision c onducted a nd c oordinated c lassification a nd c ompensation s tudies f or v arious job classifications to realign salaries to the market and address internal alignment or compaction issues. 81City of Costa Mesa, California
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■ The Human Resources Division coordinated monthly Meet and Greet events to acknowledge new hires, recent promotions, retirements and the City Manager’s Leadership Award recipient. ■ The City Clerk Division served 36,274 citizens via telephone and walk-in inquiries and ensured Spanish bilingual staff was available to assist the public.
■ The City Clerk Division served as the gateway to open and accessible government by processing 1,442 public records requests in compliance with the Public Records Act. ■ The City Clerk Division successfully conducted 21 City Council meetings and 7 Study Session meetings via hybrid format (in person and Zoom), ensuring the public’s right to access and to participate in public meetings. ■ The City Clerk Division provided Spanish translation and interpretation services at all City Council meetings. ■ The City Clerk Division provided Spanish translation of all the City Council Meeting agendas and agenda reports. ■ The City Clerk Division promoted transparency, facilitating the scanning/importing of 11,891 documents into the Laserfiche E lectronic Document Imaging System and providing the public access to these documents. ■ The City Clerk Division successfully completed one Commission and Committee recruitment. ■ The City Clerk Division conducted a Commission and Committee Nuts and Bolts Training for members.

Proposed Budget for
Fiscal Year 2026-2027
82 City of Costa Mesa, California 130
Fiscal Year 2026-27 Goals
■ The C ity M anager’s O ffice w ill e stablish d epartment-wide C ustomer S ervice g oals t o r espond t o a ll c onstituent inquiries within 1 business day and resolve or provide a status update within 5 business days. ■ The C ity M anager’s O ffice w ill e xpand o utreach e fforts a nd t ransparency b y p roviding b ilingual s ervices a nd translation to encourage civic engagement.
■ The C ity M anager’s offi ce w ill e nsure t hat C ity C ouncil p olicies, g oals a nd o bjectives a re e xecuted e ffectively and efficiently citywide.
■ The C ity M anager’s O ffice w ill e fficiently p lan, o rganize a nd i mplement r ibbon c uttings a nd c elebrations f or major capital projects such as Ketchum-Libolt Park, Shalimar Park, Brentwood, Skate Park, and more. ■ The Communications and Marketing Division will expand opportunities for youth engagement and participation in city programs, projects, and career paths through marketing and outreach. ■ The Community Outreach and Constituent Services Team will increase levels of participation and awareness amongst hard-to-reach communities in Costa Mesa, including but not limited to residents whose primary language is not English.
■ The C ommunity O utreach a nd C onstituent S ervices T eam w ill i ncrease c ommunity o utreach b y 1 5% o ver t he current figures of enrollment and participation of residents and businesses in the Costa Mesa 311 App. ■ The Community Outreach and Constituent Services Team will support effective methods of community outreach and engagement by City Departments, including pop-ups, neighborhood events, partnerships with community groups, and targeted canvassing designed to meet stakeholders where they are. ■ The Communications and Marketing Division will continue to engage the public via the City’s website, social media, and traditional media platforms to inform and encourage civic participation. ■ The C ommunications a nd M arketing D ivision w ill c ontinue t o fi lm i nnovative a nd e ngaging v ideo c ontent through long-form videos and short-term reels.
■ The Communications & Marketing Division will launch a new quarterly City Employee newsletter that highlights accomplishments and individual employees.
■ The Legislative and Government Affairs Team will advocate and implement the Costa Mesa Legislative Platform and analyze the November 2026 election impacts with a report to the City Council. ■ The Legislative and Government Affairs Team will coordinate on the ongoing implementation of the Fairview Development C enter S pecific P lan a nd w ork w ith s tate a gencies ( Department o f G eneral S ervices, D epartment of D evelopment S ervices, a nd C alifornia O ffice o f E mergency S ervices) o n t he c onstruction o f t he S outhern Regional Emergency Operations Center and the sale of remaining lands. ■ The Legislative and Government Affairs Team will assist Economic and Development Services in efforts to certify the city’s housing element and restore eligibility for applicable state funding. ■ The Legislative and Government Affairs Team will research, track, and evaluate legislative and funding earmark requests at the federal, state, and regional levels and prepare recommendations to advance City priorities and secure funding opportunities in alignment with City Council goals. ■ The HR Division will continue to implement innovative and modernized recruitment techniques to foster talent acquisition, talent management, and succession planning. ■ The HR Division will continue to create and provide comprehensive training and development programs to meet the City’s organizational needs.
■ The H R D ivision w ill c ontinue t o i dentify a nd e valuate r isk a nd l oss e xposures t o t he C ity t o e fficiently a nd appropriately m itigate fi nancial c osts a nd p roactively i mplement p rocedures, g uidelines a nd t raining t o r educe workers’ compensation and general liability costs.
■ The HR Division will continue to provide managers and supervisors with ongoing and proactive employee relations training, counseling and assistance necessary. ■ The HR Division will continue to design and deliver comprehensive training and development programs that support the City’s organizational needs, with a strong emphasis on enhancing customer service excellence. ■ The H R D ivision w ill c ontinue t o i dentify a nd e valuate r isk a nd l oss e xposures t o t he C ity t o e fficiently a nd appropriately mitigate risks and proactively implement procedures, guidelines and training to reduce and mitigate workers’ compensation and general liability costs. ■ The HR Division will continue to process liability claims quickly and efficiently to mitigate losses to the City. 83City of Costa Mesa, California
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■ The HR Division will continue to provide managers and supervisors with proactive employee relations training, counseling, and assistance as necessary.
■ The HR Division will continue to facilitate ongoing legal and labor relations training, including harassment training for managers and supervisors through the Orange County Human Resources Consortium. ■ The HR Division will complete negotiations with the Costa Mesa City Employees Association, Costa Mesa Police Association, and Costa Mesa Police Management Association and begin negotiations for a successor MOU w ith t he C osta M esa F irefighters A ssociation, C osta M esa F ire M anagement A ssociation a nd t he C osta Mesa Division Managers’ Association.
■ Human Resources will conduct a comprehensive overhaul of the performance evaluation process and continue to pilot NeoGov’s Perform module with other Departments. ■ The City Clerk’s Division will conduct the 2026 General Municipal Election. ■ The C ity C lerk D ivision w ill m aintain a ccurate r ecords o f offi cial d ocuments o f t he C ity; p ublish C ity l egal n otices as required by law.
■ The City Clerk Division will prepare and publish the agenda for City Council meetings to the public in compliance with the Brown Act.
■ The C ity C lerk D ivision w ill m aintain c ampaign fi nancial s tatements a nd C onflicts o f I nterest S tatements ( Form 700), in accordance with the City’s Municipal Code and the Fair Political Practices Commission. ■ The City Clerk Division will implement and manage the email management training program. ■ The Neighborhood Improvement Division will execute a long-term contract with the City of Irvine for the use of beds at the Bridge Shelter.
■ The Neighborhood Improvement Division will help facilitate construction completion and lease-up of the Travelodge Homekey project, which will produce 76 units of Permanent Supportive Housing for people experiencing homelessness.
■ The Neighborhood Improvement Division will execute a new contract for Shelter Operations at the Bridge Shelter.
■ The Neighborhood Improvement Division will implement on-site primary and dental care at the Bridge Shelter.

Proposed Budget for
Fiscal Year 2026-2027
84 City of Costa Mesa, California 132
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Conduct an organizational assessment of public
safety dispatch and Emergency Operations
Center (EOC) to ensure consistency with
best practices in hiring, staffing, and chain of
command.

;
TRUE
;
TRUE
2 Work with the City’s real property consultant to
consider options for acquiring park and green
space for Costa Mesa, including the central
parts of the City.
;
TRUE
3 Utilize social media and non-traditional means to
promote the City’s recruitments efforts through
increased marketing on Facebook, Instagram,
LinkedIn, and other sites.

;
TRUE
4 Launch the Costa Mesa University Program for
all city employees for a fall training curriculum.
;
TRUE
5 Finalize the College Summer Internship Program
implementation.

;
TRUE
6 Complete a demonstration of the employee
training management system (NeoGov “LEARN”)
to City leadership prior to launching Citywide.
;
TRUE
;
TRUE
7 Complete the first phase launch of the employee
performance evaluation system (NeoGov
“PERFORM”).

;
TRUE
;
TRUE
8 Explore additional opportunities for mental
health and wellness programs and activities for
City employees.
;
TRUE
9 Work with the City Manager and Police Chief to
finalize the hiring incentives for lateral police
officers.

;
TRUE
;
TRUE
10 Fully implement the 15 behavioral health beds
at the Costa Mesa Bridge Shelter with the $4.2M
Orange County Health Care Agency grant.
;
TRUE
;
TRUE
11 Monitor status of Travelodge Project Homekey
motel conversion and assist with the
implementation if awarded.

;
TRUE
;
TRUE
12 Provide continued assistance to households and
families facing no-fault evictions.
;
TRUE
;
TRUE
13 Present to City Council recommended Enterprise
Resource Planning (ERP) consultant to award
contract and begin ERP implementation.

;
TRUE

Goals and Objectives
The goals and objectives of the City Manager’s Department listed above were developed in alignment with the City Council’s priorities.
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Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
14 Consider, in concert with external stakeholders,
potential economic opportunities from
Olympics-related activities such as hotels,
venues, and practice areas in Costa Mesa.
;
TRUE
15 Present to City Council the consultant
recommended for the Climate Action
& Adaptation Plan and a timeline for
implementation.
;
TRUE
16 Develop a Municipal Sustainable Purchasing
Policy.
;
TRUE
;
TRUE
17 Conduct an EV fleet and charging station
assessment and install additional City-owned
EV charging stations, especially providing more
equity for renters.
;
TRUE
;
TRUE
18 Host the City’s 4th Annual Earth Day Festival. ;
TRUE
19 Consider a Community Choice Energy Program. ;
TRUE
20 Provide customer service training across all
departments.
;
TRUE
21 Develop thorough community outreach
and engagement policies and protocols
across all departments in order to prioritize
responsiveness.
;
TRUE
22 Create a plan that lists existing translation
efforts and provides opportunities to improve
these services.
;
TRUE
23 Provide advanced meeting agenda noticing. ;
TRUE
Proposed Budget for
Fiscal Year 2026-2027
86 City of Costa Mesa, California 134
Performance Measures/Workload Indicators:

Workload Indicators

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated
CITY CLERK’S OFFICE
Number of City Clerk concierge contacts (walk-ins, call-ins, emails) 45,931 38,564 40,000 41,000 Number of public records requests processed 1,066 1,120 1,100 1,442 Number of public meetings with interpretation available 26 20 25 25 Number of contacts facilitated for bilingual assistance at public meetings* 194 146 200 150

COMMUNICATIONS & MARKETING
Number of Costa Mesa Minutes produced 81 74 40 40
Number of “Let’s Talk Costa Mesa” produced - - 40 40
Number of Costa Mesa “El Minuto” produced 46 49 25 25
Number of “Hablamos Costa Mesa” produced - - 40 40
Number of City Hall Snapshots issued 50 50 50 50
Number of content views on City social media 453,500 3.9 million 7.9 million 7.9 million

CONSTITUENT SERVICES
Number of letters sent on behalf of the Mayor and City Council** 26 56 50 50 Number of constituent contacts (in-person, calls, emails) 432 347 370 370 Number of Grand Opening/Ribbon Cutting events facilitated 18 26 25 25 Number of community outreach events supported 26 44 35 35 Number of proclamations provided 29 22 25 25
Number of Certificates of R ecognitions produced 261 415 370 370

HOMELESS OUTREACH & BRIDGE SHELTER
Number of NHS hotline contacts (calls, emails) 2,102 2,526 2,700 2,700 Number of client contacts engaged by Homeless Outreach 178 164 200 200 Number of clients housed by Homeless Outreach, including reconnections 40 51 55 55 Number of clients housed from Shelter 32 31 35 35
Number of non-duplicated guests served in Shelter 259 231 250 250

HUMAN RESOURCES
Number of recruitments processed 61 45 50 50
Number of job applications processed 7,305 12,762 8,000 8,000 Number of employee wellness events hosted 58 77 26 30
Number of full-time employees hired 68 68 70 70
Number of part-time employees hired 128 62 100 100
Number of new general liability claims processed 86 85 80 80 Number of benefit enrollment and b enefit changes processed 2,101 2,247 2,100 2,100 Number of personnel actions processed 993 845 800 800
*Headsets and live interpretation
**Includes letters for c onstituents, elected o fficials, l egislative p ositions, e tc.

Performance Measures

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated
Public record requests responded to within prescribed time 98% 100% 100% 100% Completed City Council minutes by the following Council meeting 95% 98% 98% 100% Citywide employee turnover rate (non-retirements) 4.70% 6.00% 4.70% 4.70% Percentage of work-related injuries reported within 24-hr notice of injury 100% 100% 100% 100% Percentage o f c laims filed t hat are closed w ithout litigation 86% 85% 80% 80%

Customer Service Goal
Goal
Average response time to constituent requests within 24 hours 95% 87City of Costa Mesa, California
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Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he C ity M anager’s O ffice f or a ll f unds i s a n i ncrease o f $ 1.4 m illion o r 9 .1 percent t o t he a dopted b udget fo r F iscal Y ear 2 025-26. K ey c hanges i nclude i ncreases r elated t o l abor-n egotiated salary a nd b enefit a djustments, a nd a ddition f unding f or e lection-r elated c osts. T hese i ncreases a re p artially offset by reductions in operating expenditure to ensure spending remains even with available resources.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY MANAGER’S OFFICE BY FUNDING SOURCE

General Fund - 101 $ 8 ,902,755 $ 9 ,900,304 $ 9 ,613,229 $ 1 0,430,048 Disaster Fund - 150 - 3 ,461 - -
Grants - Other - 232 6 3,602 50,000 - -
Capital Improvements Fund - 401 - 37,180 - -
Self-Insurance Fund - 602 7 ,633,827 8 ,725,710 5,412,265 5 ,965,614

Total City Manager’s Office $ 16,600,184 $ 18,716,655 $ 15,025,494 $ 16,395,662 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY MANAGER’S OFFICE BY PROGRAM

ADMINISTRATION - 11100

Energy & Sustainability Program - 20250
Maintenance and Operations 17,502 $ 10 4,238 - - Fixed Assets 6 3,602 $ - - -
Subtotal Energy & Sustainability Program $ 81,104 $ 104,238 $ - $ -

City Manager Administration - 50001
Salaries a nd B enefits $ 1 ,883,145 $ 2 ,686,977 $ 2 ,945,175 $ 3 ,096,726 Maintenance and Operations 1 ,067,421 1,116,929 975,897 8 93,857 Fixed Assets 3 1,383 1 2,076 2 ,000 -
Subtotal City Manager Administration $ 2,981,949 $ 3,815,982 $ 3,923,072 $ 3,990,583

Communications and Marketing - 51050
Salaries a nd B enefits $ 1 ,086,672 $ 1 ,056,107 $ 1 ,110,012 $ 1 ,288,066 Maintenance and Operations 1 89,196 2 00,724 169,686 155,436 Fixed Assets 5,771 1,828 10 ,900 8 ,900
Subtotal Communications and Marketing $ 1,281,640 $ 1,258,659 $ 1,290,598 $ 1 ,452,402

City Council - 50110
Salaries a nd B enefits $ 4 90,363 $ 6 17,769 $ 5 93,734 $ 6 47,627 Subtotal City Council $ 490,363 $ 617,769 $ 593,734 $ 6 47,627

CITY CLERK - 11200

Proposed Budget for
Fiscal Year 2026-2027
88 City of Costa Mesa, California 136
Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Elections - 50120
Salaries a nd B enefits $ 9 7, 35 4 $ 1 02,088 $ 10 1,795 $ 1 08,868 Maintenance and Operations 1 ,829 155,264 25,200 2 75,200 Subtotal Elections $ 99,183 $ 257,352 $ 126,995 $ 3 84,068

City Council Meetings - 50410
Salaries a nd B enefits $ 4 83,058 $ 5 05,001 $ 5 04,266 $ 6 31,146 Maintenance and Operations 42 ,882 45,586 3 5,580 33,580 Subtotal City Council Meetings $ 525,941 $ 550,587 $ 539,846 $ 664,726

Public Records - 50420
Salaries a nd B enefits $ 4 39,193 $ 46 4,900 $ 3 99,543 $ 5 20,954 Maintenance and Operations 13,862 19,535 4 3,157 1 2,157 Fixed Assets 13 2 151 2 ,000 -
Subtotal Public Records $ 453,187 $ 484,585 $ 444,700 $ 533,111

HUMAN RESOURCES - 14100

Recruitment and Selection - 50610
Salaries a nd B enefits $ 1 ,527, 4 67 $ 1 ,596,797 $ 1 ,584,138 $ 1 ,717,5 8 4 Maintenance and Operations 1,058,029 806,363 7 71,739 629,579 Fixed Assets - - 2 ,000 -
Subtotal Recruitment and Selection $ 2,585,496 $ 2 ,403,160 $ 2,357,877 $ 2,347,163

Employee Benefit Administration - 50630
Salaries a nd B enefits $ 26 ,854 $ 13 ,058 $ 8 0,000 $ 8 0,000 Maintenance and Operations 13,696 14 ,453 9, 400 9,400 Subtotal Employee Benefit Administration $ 4 0,550 $ 27,512 $ 89,400 $ 89,400

Post-Employment Benefits - 50650
Salaries a nd B enefits $ 6 2,819 $ 6 4,633 $ - $ - Subtotal Post Employment Benefits $ 6 2,819 $ 64,633 $ - $ -

Emergency Services - 51040

RISK MANAGEMENT - 14400

Risk Management Administration - 50661
Salaries a nd B enefits $ 2 82,500 $ 3 00,841 $ 2 28,907 $ 3 02,867 Maintenance and Operations 10 5,001 1 15,223 9 8,100 98,100 Subtotal Risk Management Administration $ 387,501 $ 416,064 $ 3 27,007 $ 400,967

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Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Liability - 50662
Salaries a nd B enefits $ 1 65,436 $ 1 81,088 $ 1 65,141 $ 1 78,004 Maintenance and Operations 4,643,684 5,161,846 2,442,291 2,950,984 Subtotal Liability $ 4,809,120 $ 5,342,934 $ 2,607,432 $ 3,128,988

Workers’ Compensation - 50663
Salaries a nd B enefits $ 2, 464,886 $ 3 ,084,879 $ 2 ,383,523 $ 2 ,415,316 Maintenance and Operations 3 32,966 284,839 3 41,310 341,310 Subtotal Workers’ Compensation $ 2 ,797,853 $ 3 ,369,718 $ 2 ,724,833 $ 2,756,626

TOTAL CITY MANAGER’S OFFICE

Salaries a nd B enefits $ 9 ,010,354 $ 1 0,677,599 $ 10 ,096,234 $ 1 0,987,159 Maintenance and Operations 7,488,942 8 ,025,001 4,912,360 5 ,399,603 Fixed Assets 10 0,887 14,054 1 6,900 8 ,900

Total City Manager’s Office $ 16,600,184 $ 18,716,655 $ 15,025,494 $ 16,395,662 Proposed Budget for
Fiscal Year 2026-2027
90 City of Costa Mesa, California 138
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY MANAGER’S OFFICE BY ACCOUNT: ALL FUNDS
Salaries and Benefits
Regular Salaries - Non-Sworn $ 3 ,907, 35 3 $ 4 ,333,165 $ 4 ,57 7, 830 $ 5 ,043,317 Regular Salaries - Part-Time 4 68,606 565,218 4 33,919 433,919 Overtime 119,832 126,728 49,100 4 9,100
Accrual Payoff - Excess Max. 6,599 6 ,830 5,000 5 ,000 Vacation/Comp. Time Cash Out 5 2,517 65,053 4 8,300 48,300 Holiday Allowance 14 ,540 11,672 1 2,485 1 1,765 Separation Pay-Off 1 5,432 46,427 8 ,100 8 ,100 Other Compensation 121,500 1 22,284 10 0,681 14 3,229 Cafeteria Plan 798,891 8 75,348 939,541 9 43,061 Medicare 74,361 8 2,909 74,424 9 7,722
Retirement 1,153,189 1 ,562,841 1,518,915 1,875,596 Executive Prof Development 14 ,592 23 ,790 2 7,090 2 7,200 Auto Allowance 10,986 13 ,876 13 ,800 13 ,800 Unemployment 26 ,854 13 ,058 80,000 8 0,000
Workers’ Compensation 2 ,225,102 2 ,828,403 2,207,049 2 ,207,049 Subtotal Salaries & Benefits $ 9,010,354 $ 10,677,599 $ 10,096,234 $ 10,987,159

Maintenance and Operations
Stationery a nd O ffice $ 4 4,357 $ 42 ,050 $ 3 9,900 $ 3 4,500 Multi-Media, Promos, Subscrpt. 154,272 153,191 14 2,300 10 5,110 Small Tools and Equipment 37,822 6 ,878 10,300 4 ,300 Uniforms and Clothing 6,771 5 ,222 3 ,800 800 Safety and Health 3 5,833 34,086 2 9,000 29,000 Legal Advertising/Filing Fees 16,836 23,052 2 0,000 1 8,000 Advertising and Public Info. 1 9,168 12,263 14,300 7, 400 Telephone/Radio/Communications 2 2,298 25,442 23 ,900 23 ,900 Business Meetings 22,403 1 6,964 9,880 7, 880 Mileage Reimbursement 795 70 6 5 00 500
Dues and Memberships 9 ,159 12,240 9, 024 7,024 Professional Development 14 6,640 13 9,699 104,876 83,616 Buildings and Structures - 8 4,504 - -
Office F urniture 11,614 - - -
Office E quipment 3 6,027 3 4,145 2 0,300 20,300 Other Equipment 1 7,133 19,716 1 0,000 10,000 Employment 20,399 1 7,092 26,000 16,000
Consulting 1 ,051,063 912,722 6 92,150 905,150 Legal 1 37,891 123,025 231,300 1 52,800
Medical and Health Inspection 113,824 1 85,456 101,900 10 1,900 Public Safety 9 3,630 1 56,540 1 64,600 1 34,000 Sanitation 4 80 5 20 4 00 400
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY MANAGER’S OFFICE BY ACCOUNT: ALL FUNDS
Maintenance and Operations (Continued)
External Rent 4 7,704 43,205 4 5,400 3 5,800
Grants, Loans and Subsidies 39,750 43,550 2 0,000 - Internal Rent Central Services 1 2,815 13 ,847 13 ,429 13,429 Internal Rent Postage 15,425 4,552 7,138 7, 138 Internal Rent - Maintenance 600 600 600 6 00
Internal Rent - Repl Cost 3 ,900 3 ,900 3 ,900 3,900 Internal Rent - Fuel 3 ,055 1,000 1,000 1 ,000 Internal Rent Genl Liability 717,330 717,330 717,330 7 17,330 Internal Rent Workers’ Comp 2 1,096 2 1,096 2 1,096 21,096 Internal Rent Unemployment 6 ,186 6 ,186 6 ,186 6,186 General Liability 2 ,047,044 2, 748,558 2,082,251 2,590,944 Special Liability - - 9, 400 9,400
Buildings & Personal Property - - 195,200 1 95,200 Taxes and Assessments 1 06,901 75,639 85,000 8 5,000 Contingency 2 ,468,722 2,302,843 50,000 5 0,000 Subtotal Maintenance & Operations $ 7,488,942 $ 7,987,822 $ 4,912,360 $ 5, 399,603

Fixed Assets
Office F urniture $ 1 7, 819 $ 1 1,962 $ - $ - Other Equipment 8 3,068 2 ,093 16,900 8 ,900
Subtotal Fixed Assets $ 100,887 $ 14,054 $ 16,900 $ 8,900

Total City Manager’s Office $ 16,600,184 $ 18,679,475 $ 15,025,494 $ 16,395,662

Proposed Budget for
Fiscal Year 2026-2027
92 City of Costa Mesa, California 140
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY MANAGER BY ACCOUNT: GENERAL FUND ONLY
Salaries and Benefits
Regular Salaries - Non-Sworn $ 3 ,688,126 $ 4 ,117, 4 3 4 $ 4 ,365,009 $ 4 ,818,402 Regular Salaries - Part-Time 387,314 463,359 413,394 4 13,394 Overtime 1 15,856 1 22,316 49,100 4 9,100
Accrual Payoff - Excess Max. 6,599 6 ,830 5,000 5 ,000 Vacation/Comp. Time Cash Out 51,114 6 3,530 4 8,300 48,300 Holiday Allowance 1 3,886 11,298 11,765 1 1,765 Separation Pay-Off 1 5,097 46,427 8 ,100 8 ,100 Other Compensation 120,449 1 21,245 99,617 143,025 Cafeteria Plan 7 62,040 839,593 903,231 903 ,231 Medicare 6 9,695 78,064 7 1,317 9 2,217
Retirement 1 ,097,603 1 ,487,778 1 ,452,287 1 ,780,744 Executive Prof Development 1 4,411 23,365 26,650 2 6,760 Auto Allowance 10,986 13 ,876 13 ,800 13 ,800 Subtotal Salaries & Benefits $ 6,353,178 $ 7,395,113 $ 7,467,570 $ 8,313,839

Maintenance and Operations
Stationery a nd O ffice $ 4 4,357 $ 42 ,050 $ 3 9,900 $ 3 4,500 Multi-Media, Promos, Subscrpt. 154,272 153,191 14 2,300 10 5,110 Small Tools and Equipment 37,822 6 ,878 10,300 4 ,300 Uniforms and Clothing 6,771 5 ,222 3 ,800 800 Safety and Health 3 5,833 34,086 2 9,000 29,000 Legal Advertising/Filing Fees 16,836 23,052 2 0,000 1 8,000 Advertising and Public Info. 1 9,168 12,263 14,300 7, 400 Telephone/Radio/Communications 2 2,298 25,442 23 ,900 23 ,900 Business Meetings 22,403 1 6,964 9,880 7, 880 Mileage Reimbursement 795 70 6 5 00 500
Dues and Memberships 9 ,159 12,240 9, 024 7,024 Professional Development 14 6,640 13 9,699 104,876 83,616 Buildings and Structures - 8 4,504 - -
Office F urniture 11,614 - - -
Office E quipment 3 6,027 3 4,145 2 0,300 20,300 Other Equipment 1 7,133 19,716 1 0,000 10,000 Employment 20,399 1 7,092 26,000 16,000
Consulting 6 94,864 5 43,077 330,400 543,400 Legal 1 37,891 123,025 231,300 1 52,800
Medical and Health Inspection 113,824 1 85,456 101,900 10 1,900 Public Safety 9 3,630 1 56,540 1 64,600 1 34,000 Sanitation 4 80 5 20 4 00 400
External Rent 4 7,704 43,205 4 5,400 3 5,800 Grants, Loans and Subsidies 39,750 43,550 2 0,000 - Internal Rent Central Services 1 2,815 13 ,847 13 ,429 13,429 93City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY MANAGER BY ACCOUNT: GENERAL FUND ONLY
Maintenance and Operations (Continued)
Internal Rent Postage 15,425 4,552 7,138 7, 138 Internal Rent - Maintenance 600 600 600 6 00 Internal Rent - Repl Cost 3 ,900 3 ,900 3 ,900 3,900 Internal Rent - Fuel 3 ,055 1,000 1,000 1 ,000 Internal Rent Genl Liability 717,330 717,330 717,330 7 17,330 Internal Rent Workers’ Comp 2 1,096 2 1,096 2 1,096 21,096 Internal Rent Unemployment 6 ,186 6 ,186 6 ,186 6,186 Taxes and Assessments 2 ,216 - - -
Subtotal Maintenance & Operations $ 2,512,292 $ 2,491,136 $ 2,128,759 $ 2,107,309

Fixed Assets
Office F urniture $ 1 7, 819 $ 1 1,962 $ - $ - Other Equipment 1 9,466 2 ,093 16,900 8 ,900 Subtotal Fixed Assets $ 37,286 $ 14,054 $ 16,900 $ 8,900

Total City Manager’s Office $ 8,902,755 $ 9,900,304 $ 9,613,229 $ 10,430,048

Proposed Budget for
Fiscal Year 2026-2027
94 City of Costa Mesa, California 142
City Attorney’sOffice
City Attorney’s
Office
143
City Attorney
Contracted City Attorney
Jones & Mayer
Assistant City Attorney (2)
Proposed Budget for
Fiscal Year 2026-2027
96 City of Costa Mesa, California 144
The C ity A ttorney’s O ffice i s classified a s a G eneral G overnment S upport f unction. T he C ity A ttorney i s a c ontracted service with the legal firm of Jones & Mayer.

City Attorney — 12100
Legal Services – 50320
Provides l egal c ounsel a nd a dvice d uring offi cial m eetings a nd s tudy s essions o f t he C ity C ouncil a nd v arious commissions; serves as a legal advisor to City staff; prepares and reviews City ordinances, resolutions, contracts a n d l e g a l d o c u m e n t s ; r e p r e s e n t s t h e C i ty i n c i v i l a n d c r i m i n a l l i t i g a t i o n s ; o v e r s e e s t h e w o r k o f o u t s i d e p r i v a t e counsel w hen h ired t o a ssist i n l itigation; a nd c oordinates/reviews c laims fi led a gainst o r f or t he C ity w ith R isk Management. Legal costs associated with litigation are included in the Non-Departmental budget rather than the City Attorney’s Office budget.

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Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he C ity A ttorney’s O ffice i s $ 1,157,411, a n i ncrease o f $ 33,711, o r 3 .0% c ompared to the adopted budget for Fiscal Year 2025-26. The increase is primarily attributed to the adjustment in costs due to the Consumer Price Index in the agreement.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY ATTORNEY’S OFFICE BY FUNDING SOURCE

General Fund - 101 $ 9 7 7,061 $ 1 ,107,716 $ 1 ,123,700 $ 1 ,157, 411

Total City Attorney’s Office $ 977,061 $ 1 ,107,716 $ 1,123,700 $ 1,157,411 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY ATTORNEY’S OFFICE BY PROGRAM
ADMINISTRATION - 12100

General Legal Services - 50320
Maintenance and Operations $ 9 7 7,061 $ 1 ,107,716 $ 1 ,123,700 $ 1 ,157, 411 Subtotal General Legal Services $ 977,061 $ 1 ,107,716 $ 1,123,700 $ 1,157,411

Emergency Services - 51040

Local Emergency Responses - 52100

TOTAL CITY ATTORNEY’S OFFICE

Maintenance and Operations $ 9 7 7,061 $ 1 ,107,716 $ 1 ,123,700 $ 1 ,157, 411

Total City Attorney’s Office $ 977,061 $ 1 ,107,716 $ 1,123,700 $ 1,157,411 Proposed Budget for
Fiscal Year 2026-2027
98 City of Costa Mesa, California 146
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY ATTORNEY’S OFFICE BY ACCOUNT: ALL FUNDS
Maintenance and Operations

Legal 9 77,061 1 ,107,716 1 ,123,700 1,157,411 Subtotal Maintenance & Operations $ 977,061 $ 1,107,716 $ 1,123,700 $ 1,157,411

Total City Attorney’s Office $ 977,061 $ 1,107,716 $ 1,123,700 $ 1,157,411 99City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
CITY ATTORNEY’S OFFICE BY ACCOUNT: GENERAL FUND ONLY
Maintenance and Operations

Legal 9 77,061 1 ,107,716 1 ,123,700 1,157,411 Subtotal Maintenance & Operations $ 977,061 $ 1,107,716 $ 1,123,700 $ 1,157,411

Total City Attorney’s Office $ 977,061 $ 1,107,716 $ 1,123,700 $ 1,157,411 Proposed Budget for
Fiscal Year 2026-2027
100 City of Costa Mesa, California 148
FinanceDepartment
Finance
Department
149
Finance Department
Finance Administration

1.0 FTE- Finance Director

1.0 FTE- Assistant Finance Director

1.0 FTE- Executive Assistant

1.0 FTE - Financial Analyst
Budget

2.0 FTE - Senior Budget Analyst

1.00 FTE- Finance Manager
Purchasing

1.0 FTE - Finance Oﬃcer- Purchasing

2.0 FTE - Buyer

1.00 FTE- Budget and Purchasing
Manager

1.0 FTE- Executive Assistant
Treasury

1.0 FTE - Finance Oﬃcer- Revenues

1.0 FTE - Accounting Specialist I

2.0 FTE - Accounting Specialist II

1.0 FTE - Financial Analyst

1.0 FTE- Business License Inspector

1.0 FTE - Permit Processing Specialist
Payroll

1.0 FTE - Finance Oﬃcer- Payroll (CON)

1.0 FTE - Payroll Coordinator
Accounting

1.0 FTE - Finance Oﬃcer- Accounting

1.0 FTE - Senior Accountant

1.0 FTE - Accountant

2.0 FTE - Accounting Specialist II

0.75 FTE- Part-Time
Proposed Budget for
Fiscal Year 2026-2027
102 City of Costa Mesa, California 150
The Finance Department is a General Government Support function. The Department has 26 full-time staff members c omposed o f f our ( 4) m anagement, f our ( 4) O fficers, s ixteen ( 16) p rofessional s taff, a nd t wo ( 2) c lerical positions. The department is comprised of two divisions as follows:
■ Finance Administration
■ Financial Operations
Finance Administration — 13100
Administration – 50001
Provides t he D epartment’s o verall a dministrative d irection a nd p olicy i mplementation; a dvises t he C ity M anager, City C ouncil, F inance a nd P ension A dvisory C ommittee, a nd t he D eferred C ompensation C ommittee; a nd p rovides the overall coordination of the Department, including budgeting, accounting, payroll, purchasing, and treasury functions.

Financial Operations — 13200
Financial Services – 50500
Provides fi nancial, a ccounting, p ayroll, t reasury, p rocurement a nd b udgetary s ervices f or a ll d epartments o f t he City. T he D ivision i s r esponsible f or g overnment-wide fi nancial a nalysis, f und fi nancial a nalysis, c ash m anagement, investments, c apital a ssets, d ebt a dministration, a nd fi nancial r eporting. T he D ivision i s a lso r esponsible f or m o n i t o r i n g t h e C i t y ’ s i n v e s t m e n t p o r t f o l i o ; p r o c u r e s s e r v i c e s , s u p p l i e s , a n d e q u i p m e n t f o r C i t y d e p a r t m e n t s ; prepares a nd a dministers t he C ity’s a nnual b udget; p rovides a ccounting a nd b udgeting t o t he H ousing Au thority, the P ublic F inancing Au thority, t he F inancing Au thority, a nd t he C osta M esa F oundation; m aintains e ffective internal c ontrol p olicies a nd p rocedures t o s afeguard t he C ity’s a ssets a nd m anage i ts r esources; a nd c onducts fiscal analysis during labor negotiations.

Accounting
Maintains t he a ccounting a nd fi xed a ssets s ystems; p rovides a ccounts p ayable s ervices t o d epartments, i ncluding 1099 r eporting; r econciles m onthly b ank s tatements; c oordinates a ll fi nancial a udits i ncluding t he a nnual fi nancial audit a nd a udits b y a ll o utside a gencies; p rovides i nternal a nd e xternal fi nancial r eports i ncluding p ublication o f t he Annual C omprehensive F inancial R eport ( ACFR); o versees t he i mplementation o f n ew a ccounting p ronouncements by t he G overnmental Ac counting S tandards B oard ( GASB); c oordinates S tate-mandated c osts r eimbursement claim (SB 90); provides accounting for the Housing Authority, and the Costa Mesa Foundation.

Budget
Prepares and administers the City’s annual budget development process and prepares the annual budget for adoption b y C ity C ouncil. T he B udget D ivision a lso p repares a nd m onitors e xpenditure a nd r evenue p rojections; prepares b udget f orecast a nd p erformance r eports, i ncluding t he q uarterly a nd m id-year r eview; p erforms s pecial research projects or analysis as assigned by the Finance Director, City Manager, and/or City Council. The Budget Division also participates in preparing labor cost estimates for labor negotiations, future budgets, and long-term forecasting.

Payroll
Payroll d ivision i s m anaged b y t wo f ull t ime s taff, t he p ayroll c oordinator a nd p ayroll offi cer. P ayroll p lans, o rganizes, coordinates, and supervises activities for bi-weekly payroll processing in compliance with Federal and State tax law, and City labor contracts for each labor group accurately and timely. The division prepares monthly, quarterly and annual reporting for Federal taxes, California Public Employee’s Retirement System (CalPERS), and California Employment Development Department (EDD). In addition, Payroll prepares annual census data and prepares the legally required W-2 forms that’s distributed to all city staff part-time and full-time City staff.

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Purchasing
The City of Costa Mesa Procurement staff is dedicated to the principles of competition, fairness, and transparency in procurement. Our goal is to ensure that Costa Mesa taxpayers receive the best quality at the best price on every purchase, supported by effective contract management and the use of digital tools such as PlanetBids to promote open and competitive bidding. All expenditures are conducted in a manner that preserves the public trust.

Purchasing operates in compliance with federal, state, and local law and is strictly prohibited from taking any actions that do not reflect the ideals of honor and integrity in the performance of its work.

Treasury
Monitors a nd s afeguards t he p ublic f unds o f t he C ity; P rovides c entralized c ashiering a nd c ollections; p erforms investment functions under direction of the Finance Director/City Treasurer; monitors accounting and collections f or all City re v enues, including transient occupancy tax es; cannabis tax es; franchise tax es and lea se re v enues; sidewalk s ales, n on-profit s olicitations, a nd fi rework s tands; c oordinates t he a nnual u pdate o f S chedule o f U ser and Regulatory Fees (Master Fee Schedule); administers the City’s business license programs; generates billings for v arious r eceivables; r eviews a udits p erformed b y o utside c onsultants f or c annabis t ax, t ransient o ccupancy tax, waste hauler franchises, Costa Mesa golf course and tennis center; prepares the Treasurer’s Report, Property Tax Report, and Sales Tax Report.

Proposed Budget for
Fiscal Year 2026-2027
104 City of Costa Mesa, California 152
Fiscal Year 2025-2026 Accomplishments
■ Maintained the City’s AA+ Lease Revenue Bond credit rating. ■ Received the California Society of Municipal Finance Officers (CSMFO) Operating Budget Excellence Award ■ Recipient o f t he G overnment F inance O fficer A ssociation’s ( GFOA) C ertificate o f R ecognition f or B udget Preparation for fiscal year ended June 30, 2025.
■ Implemented Governmental Accounting Standards Board (GASB) 101, a reporting standard for compensated absences.
■ Prepared the June 30, 2025 Annual Comprehensive Financial Report (ACFR), Single Audit Report, Financing Authority Financial Statements, Housing Authority Financial Statements, Cities Financial Transactions Report to the State Controller’s Office, and the Development Impact Fees Annual Report. ■ Exceeded City Council General Fund reserve policy of $55 million by $5 million for a year end of $60.9 million. ■ Continue to provide recommended updates to the Citywide Master Fee and Charges Schedule to FiPAC and request for City Council consideration during the annual budget process. ■ Received t he G FOA C ertificate o f Ac hievement f or E xcellence i n F inancial R eporting f or fi scal y ear e nded J une 30, 2025.
■ Received the GFOA Distinguished Budget Presentation Award for fiscal year beginning July 1, 2025. ■ Successfully submitted a balanced FY 2025-26 budget to the City Council. ■ Successfully transitioned the W-2 printing and distribution process to Automatic Data Processing (ADP), Inc. ■ Implemented p ayroll c hanges t o r eflect n ew r equirements a nd c ompensation u pdates e nacted t hrough t he O ne Big Beautiful Bill Act (OBBBA).
■ Ensured the continued processing of payroll accurately and on time, while maintaining compliance with all federal and state-mandated reporting requirements.
■ Provide financial reports that includes State Tax and Property Tax for City Council and FiPAC. ■ Coordinated with legislative staff to identify external restricted revenue sources. ■ Initiated the implementation of the City’s new Enterprise Resource Planning (ERP), a major modernization initiative designed to replace multiple legacy platforms. ■ Per City Council direction, conduct a comprehensive review and analysis of both Business License Tax and Hotel Tax (Transient Occupancy Tax) for consideration of a November 2026 ballot initiative. ■ As per City Council direction, worked with FiPAC subcommittee to review the feasibility of two ballot measures. ■ Continued to safeguard the City’s assets and invested available cash in accordance with the City’s adopted investment policy, optimizing returns.
■ Continue to work with Public Works and the Fire and Rescue Departments to secure funding for Fire Station 2.

105City of Costa Mesa, California
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Fiscal Year 2026-2027 Goals
■ Continue to provide excellent customer service for the City’s external customers in the Treasury Division ■ As an internal general government support department, provide excellent customer service to internal departments and increase interdepartmental collaboration. ■ Present FY 2026-2027 Mid-Year Budget updates and adjustments to the City Council, as needed. ■ Continue to prepare for annual financial statement audits a nd work with departments to ensure compliance. ■ Implement Government Accounting Standards Board (GASB) 104, ensuring compliant reporting of capital assets.
■ Continue to review cost recovery models across all departments. ■ Continue to audit the cannabis business tax receipts for Measures X and Q. ■ Maintain ongoing audits of the hotel tax (transient occupancy tax) receipts. ■ Continue the implementation of the City’s new Enterprise Resource Planning (ERP) system, a major modernization initiative r eplacing m ultiple l egacy p latforms. T his w ill i nclude fi nalizing c onfiguration o f c ore fi nancial a nd procurement modules, and completing data conversion and validation. ■ Receipt of two triple-combination pumping engines is anticipated in the fall of 2026. ■ Initiate contract execution and purchase distribution through digital procurement, transitioning to a paperless process.
■ Potentially place ballot measures, in collaboration with the City Council, on the November 2026 elections.

Proposed Budget for
Fiscal Year 2026-2027
106 City of Costa Mesa, California 154
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Implementation o f E RP financial software s olutions to improve r eporting efficiences
;
TRUE
2 Continue to evaluate and implement multi-year strategic funding options of the Self Insurance Fund ;
TRUE
3 Identify options for reducing the net pension liability and net OPEB liability
;
TRUE
4 Monitor Measure Q and X t ax r ate a nd f ees. ; TRUE
5 Continue t o p rovide q uarterly fi nancial r eports t o t he C ity Council and FiPAC
;
TRUE

Goals and Objectives
The goals and objectives of the Finance Department were developed in alignment with the City Councils priorities. 107City of Costa Mesa, California
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Performance Measures/Workload Indicators:

Workload Indicators

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated
Number of Waitwhile bookings of business licenses 1,605 1,573 1,500 1,500 Number of budget adjustments processed 54 85 72 75
Number of budget transfers 343 348 350 350
Number of business licenses issued or renewed 6,307 9,554 10,000 10,200 Number of business license renewal notices sent 11,560 7,536 8,000 8,200 Number of cash register transactions processed 6,898 6,805 7,000 8,000 Number of contracts issued 393 492 495 495
Number of form 1099s issued 223 230 245 290
Number of form W-2s issued 867 913 915 915
Number of journal entries prepared 966 665 700 700
Number of payroll issued 19,286 20,204 20,500 20,500
Number of purchase orders issued 1,760 1,316 1,400 1,400 Number of Vendor Payments issued 19,254 7599 8,000 8,500 Number of Accounts Receivable Invoices 1,033 1,318 1,600 1,800

Performance Measures

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated
Years received GFOA Distinguished Budget Award 23 24 25 26 Years received the ACFR Excellence in Financial Reporting Award 26 27 28 29 Years with Structurally Balanced Budget since 2019 5 6 7 8 Years with Positive Fiscal Year End Balance Results 5 6 7 8 Number of Y ears with Clean “ Unmodified” Audit R esults 5 6 7 8 Number of Years Maintain/Exceed General Fund Reserve Target of $55 m illion s ince 2 019 3 4 5 6

Customer Service Goal
Goal
Average response time to process business license requests within 2 business days 95%

Proposed Budget for
Fiscal Year 2026-2027
108 City of Costa Mesa, California 156
Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he F inance D epartment i s $ 6.1 m illion, a d ecrease o f $ 987,818, o r 1 4.0 p ercent compared to the adopted budget for Fiscal Year 2025-26. While there are increases attributed to adjustments to salaries a nd b enefits a s r esult o f l abor n egotiations, t he o perating b udget i s t emporarily b eing r educed t o m aintain a balanced budget under current economic conditions.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

FINANCE DEPARTMENT BY FUNDING SOURCE

General Fund - 101 $ 4 ,416,583 $ 5 ,057,429 $ 6 ,296,503 $ 5 ,933,378 Payroll Clearing - 120 5 00 - - -
Disaster Fund - 150 - 3 ,527 - -
Grants - State - 231 - - 7 50,000 -
IT Replacement Fund - 603 - - - 125,307

Total Finance Department $ 4,417,083 $ 5,060,956 $ 7,046,503 $ 6,058,685 Expense by Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

FINANCE DEPARTMENT BY PROGRAM
ADMINISTRATION - 13100

Finance Administration - 50001
Salaries a nd B enefits $ 9 15,324 $ 1 ,213,194 $ 1 ,486,634 $ 1 ,531,976 Maintenance and Operations 97,648 151,778 42 6,360 4 06,360 Fixed Assets 22,860 - 7,900 7, 900
Subtotal Finance Administration $ 1,035,832 $ 1,364,973 $ 1 ,920,894 $ 1,946,236

Emergency Services - 51040
Maintenance and Operations 4,331 - - -
Subtotal Emergency Services $ 4,331 $ - $ - $ -

FINANCIAL OPERATIONS - 13200

Financial Services - 50500 (1)(2)
Salaries a nd B enefits $ 2 ,658,614 $ 3 ,223,536 $ 3 ,499,239 $ 3 ,636,858 Maintenance and Operations 696,730 451,827 8 46,970 4 46,191 Fixed Assets 1 6,621 1 7,094 7 79,400 29,400
Subtotal Financial Services $ 3,371,965 $ 3,692,456 $ 5,125,609 $ 4,112,449

109City of Costa Mesa, California
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Expense by Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

TOTAL FINANCE DEPARTMENT

Salaries a nd B enefits $ 3 ,578,893 $ 4, 440,258 $ 4 ,985,873 $ 5 ,168,834 Maintenance and Operations 7 98,710 6 03,605 1,273,330 852,551 Fixed Assets 3 9,480 1 7,094 7 87,300 3 7,300

Total Finance Department $ 4,417,083 $ 5,060,956 $ 7,046,503 $ 6,058,685

(1) As of Fiscal Year 2024-25, Financial Services consists of Accounting, Treasury, Budget and Purchasing. (2) As of Fiscal Year 2024-25, Warehouse operations were transferred from the Finance Department to the Public Works Department.

Proposed Budget for
Fiscal Year 2026-2027
110 City of Costa Mesa, California 158
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FINANCE DEPARTMENT BY ACCOUNT: ALL FUNDS

Salaries and Benefits
Regular Salaries - Non-Sworn $ 1 ,981,521 $ 2 ,515,951 $ 3 ,108,737 $ 3 ,201,303 Regular Salaries - Part-Time 171,712 281,934 7 3,492 73,492 Overtime 57,34 4 95,852 3 6,500 36,500
Accrual Payoff - Excess Max. - - 3 ,200 3 ,200 Vacation/Comp. Time Cash Out 1 8,635 28,013 20,600 2 0,600 Holiday Allowance 8 ,904 7,979 5,088 5 ,088
Separation Pay-Off 3 2,142 8, 683 9 ,080 9,080 Other Compensation 3 2,247 3 0,471 3 7,567 28,074 Cafeteria Plan 3 91,997 488,482 594,248 5 94,248 Medicare 35,476 4 6,135 4 6,418 52,731
Retirement 835,991 9 23,124 1 ,034,683 1,127,818 Executive Prof Development 6 ,007 6 ,695 9,360 9, 800 Auto Allowance 6 ,919 6 ,938 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 3,578,893 $ 4,440,258 $ 4,985,873 $ 5,168,834

Maintenance and Operations
Stationery a nd O ffice $ 2 0,819 $ 1 9,316 $ 14 ,300 $ 14 ,300 Multi-Media, Promos, Subscrpt. 2 ,625 5 43 1,300 1 ,300 Safety and Health 7 73 7 89 4 00 400
Legal Advertising/Filing Fees - - 6 ,000 6 ,000 Telephone/Radio/Communications 3,997 9,941 4 00 400 Business Meetings 3 ,781 3 ,549 - -
Mileage Reimbursement 61 2 39 200 2 00
Dues and Memberships 2 ,370 2,770 2 ,000 2,000 Professional Development 17,137 20,601 14 ,660 14,660 Office E quipment 5,804 8 ,114 3 ,700 3,700
Consulting 164,690 1 23,709 277,500 257,500
Legal 1 ,288 8,694 1 0,000 10,000
Financial & Information Svcs. 489,524 326,398 8 38,750 437,971 Sanitation 4 80 5 20 8 00 800
External Rent 2 ,069 1,893 - -
Internal Rent Central Services 4 ,321 4 ,362 2 0,000 20,000 Internal Rent Postage 11,781 9,009 2 0,460 20,460 Internal Rent - Fuel - 300 - -
Internal Rent Genl Liability 2 5,990 2 5,990 2 5,990 25,990 Internal Rent Workers’ Comp 3 4,090 3 4,090 3 4,090 34,090 Internal Rent Unemployment 2,780 2,780 2,780 2 ,780 Emergency Protective Measure 4,331 - - -
Subtotal Maintenance & Operations $ 798,710 $ 603,605 $ 1,273,330 $ 852,551

111City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FINANCE DEPARTMENT BY ACCOUNT: ALL FUNDS
Fixed Assets
Office F urniture $ 2 2,860 $ - $ 2 ,900 $ 2 ,900 Other Equipment 1 6,621 17,094 3 4,400 34,400 Subtotal Fixed Assets $ 39,480 $ 17,094 $ 37,300 $ 37,300

Transfers Out
Transfers Out - - 7 50,000 -
Subtotal Transfers Out - - 750,000 -

Total Finance Department $ 4,417,083 $ 5,060,956 $ 7,046,503 $ 6,058,685 Proposed Budget for
Fiscal Year 2026-2027
112 City of Costa Mesa, California 160
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FINANCE DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY

Salaries and Benefits
Regular Salaries - Non-Sworn $ 1 ,981,521 $ 2 ,513,117 $ 3 ,108,737 $ 3 ,102,844 Regular Salaries - Part-Time 171,712 2 81,504 7 3,492 73,492 Overtime 57,34 4 95,852 3 6,500 36,500
Accrual Payoff - Excess Max. - - 3 ,200 3 ,200 Vacation/Comp. Time Cash Out 1 8,635 28,013 20,600 2 0,600 Holiday Allowance 8 ,904 7,979 5,088 5 ,088
Separation Pay-Off 3 2,142 8, 683 9 ,080 9,080 Other Compensation 3 2,247 3 0,471 3 7,567 2 7,582 Cafeteria Plan 3 91,997 488,482 594,248 5 94,248 Medicare 35,476 4 6,135 4 6,418 51,296
Retirement 835,991 922,861 1 ,034,683 1,102,897 Executive Prof Development 6 ,007 6 ,695 9,360 9, 800 Auto Allowance 6 ,919 6 ,938 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 3,578,893 $ 4,436,730 $ 4,985,873 $ 5,043,527

Maintenance and Operations
Stationery a nd O ffice $ 2 0,819 $ 1 9,316 $ 14 ,300 $ 14 ,300 Multi-Media, Promos, Subscrpt. 2 ,625 5 43 1,300 1 ,300 Safety and Health 7 73 7 89 4 00 400
Legal Advertising/Filing Fees - - 6 ,000 6 ,000 Telephone/Radio/Communications 3,997 9,941 4 00 400 Business Meetings 3 ,781 3 ,549 - -
Mileage Reimbursement 61 2 39 200 2 00
Dues and Memberships 2 ,370 2,770 2 ,000 2,000 Professional Development 17,137 20,601 14 ,660 14,660 Office E quipment 5,804 8 ,114 3 ,700 3,700
Consulting 164,690 1 23,709 277,500 257,500
Legal 1 ,288 8,694 1 0,000 10,000
Financial & Information Svcs. 4 89,024 326,398 8 38,750 437,971 Sanitation 4 80 5 20 8 00 800
External Rent 2 ,069 1,893 - -
Internal Rent Central Services 4 ,321 4 ,362 2 0,000 20,000 Internal Rent Postage 11,781 9,009 2 0,460 20,460 Internal Rent - Fuel - 300 - -
Internal Rent Genl Liability 2 5,990 2 5,990 2 5,990 25,990 Internal Rent Workers’ Comp 3 4,090 3 4,090 3 4,090 34,090 Internal Rent Unemployment 2,780 2,780 2,780 2 ,780 Emergency Protective Measure 4,331 - - -
Subtotal Maintenance & Operations $ 798,210 $ 603,605 $ 1,273,330 $ 852,551

113City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FINANCE DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY

Fixed Assets
Office F urniture $ 2 2,860 $ - $ 2 ,900 $ 2 ,900 Other Equipment 1 6,621 17,094 3 4,400 34,400 Subtotal Fixed Assets $ 39,480 $ 17,094 $ 37,300 $ 37,300

Total Finance Department $ 4,416,583 $ 5,057,429 $ 6, 296,503 $ 5,933,378 Proposed Budget for
Fiscal Year 2026-2027
114 City of Costa Mesa, California 162
Parks and Community Services Department
Parks and Community
Services Department
163
Parks and Community Services Department
Parks and Community
Services Administration

1.0 FTE - Parks and Community
Services Director

1.0 FTE - Recreation Manager

2.0 FTE - Senior Recreation Supervisor

1.0 FTE - Senior Management Analyst

1.0 FTE - Executive Assistant
Fairview Park

1.0 FTE - Fairview Park
Administrator

1.0 FTE - Fairview Park Senior
Maintenance Technician

1.0 FTE- Recreation Specialist

0.25 FTE - Part-time
Recreation

3.0 FTE - Recreation Supervisor

4.0 FTE - Recreation Coordinator

1.0 FTE - Oﬃce Specialist II

7.0 FTE - Recreation Specialist

1.0 FTE - Community Outreach
Worker

62.32 FTE - Part- Time

1.0 FTE - Arts Specialist
Arts and Culture
Proposed Budget for
Fiscal Year 2026-2027
116 City of Costa Mesa, California 164
The Parks and Community Services Department provides the citizens of Costa Mesa with a variety of high-quality recreation facilities, programs, and services. These facilities include the Balearic Community Center, the Downtown Aquatic and Recreation Centers, the Norma Hertzog Community Center, the Costa Mesa Senior Center, and the Jack H ammett S ports C omplex. T he D epartment a llocates a nd m onitors a thletic fi eld u se a nd o versees p ublic usage of park facilities. It is also responsible for the management and maintenance of Fairview Park. In terms of programs, the Department provides a large offering of youth, teen, and adult recreation programs and classes, as well as Citywide special events. The Department also manages the operating agreements for the Balearic Community Center, the Costa Mesa Country Club, and the Costa Mesa Tennis Center, and oversees long-term use agreements with the Boys and Girls Club of Orange County, the Child’s Pace program, and the Orange County Model Engineers.

The department is budgeted for 26 full-time and 62.57 part-time employees.

Parks and Community Services — 14300
Fairview Park – 20115
Fairview Park is the City’s largest park, hosting 195 acres of open space natural area and 13 acres of manicured landscape for a total of 208 acres. Within the 195 acres of open space, there are two Native American Nationally Registered Historic Sites and five different habitat ecosystems that are home to many rare and endangered plant and animal species. The park acts as a regional gateway to the Santa Ana River Trail and adjacent Talbert Regional Park, offering users multiple passive recreational opportunities including picnicking and wildlife viewing, along with miles of trails for walking, bicycling, and public enjoyment of nature.

Downtown Recreation Center (DRC) – 40121
The Downtown Recreation Center (DRC), located at 1860 Anaheim Avenue, includes a gymnasium, two multi- purpose rooms, and a kitchen. The facility provides a variety of programs both free and fee-based, including free drop-in youth basketball, adult drop-in basketball, volleyball and pickleball, recreational adult basketball leagues, and free youth basketball and volleyball leagues. The gym is also available for rentals and has been used for karate tournaments and volleyball clinics.

The D RC k itchen, offi ce, a nd a c lassroom a re d esignated f or t he C hilds-Pace I nc. p rogram, a g overnment subsidized pre-school and daycare for low-income families. The second multi-purpose room is used for meetings and moderately sized contract classes including guitar lessons, CPR classes, dance, gymnastics, aerobics, and martial arts. During the school year, a free Teen Center is offered to teens (grades 7-12). During the summer, a free nine-week summer program is offered for children (grades 1-6).

Balearic Community Center (BCC) – 40122
The B alearic C ommunity C enter ( BCC), l ocated a t 1 975 B alearic D r., p rovides offi ce s pace f or p rogram s taff a nd includes a r ental r oom a vailable f or m eetings a nd r eceptions. T he S ummer R .O.C.K.S P rogram, H oliday a nd Summer Day Camps, and the City’s Early Childhood Program, known as L.E.A.P, are offered at BCC. Adjacent to the community center is a fenced playground with play equipment, a sandlot park playground, multiple basketball and pickleball courts, and a large athletic field, the use of which is permitted by the City.

Norma Hertzog Community Center (NHCC) – 40123
The Norma Hertzog Community Center (NHCC) is located at 1845 Park Avenue. This newly renovated facility offers a contemporary, community meeting space that can be set up in classroom or banquet style and also features a kitchen and beautiful outdoor patio. The NHCC is available for rentals such as community events, educational meetings and classes, weddings, quinceañeras, anniversaries, and contract classes for Community groups, local businesses, non-profit organizations, schools, colleges, and private parties. 117City of Costa Mesa, California
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Downtown Aquatic Center (DAC) / Aquatics – 40212
The Downtown Aquatic Center, located at 1860 Anaheim Avenue, operates a 25-yard swimming pool and provides year-round aquatics programming for both youth and adults. Programs include adult and youth swim instruction for beginner to advanced swimmers, aqua aerobics, summer youth aquatics camp, junior lifeguard preparation classes, and a swim instructor aid program for advanced youth swimmers. The aquatics program also offers seasonal family open swim as well as year-round drop-in and adult lap swimming.

Tennis – 40213
The Costa Mesa Tennis Center, located at TeWinkle Park, 880 Junipero Drive, is currently managed by an independent operator. The Center features 12 lighted courts that are open seven days a week, and a pro shop with professional tennis staff to assist the public. Programs include lessons, tournaments, leagues, and open play for the entire community.

Adult Sports - Basketball, Softball – 40214 & 40215
The Department offers year-round adult recreational basketball leagues and oversees a contract with Major League Softball to run adult softball leagues. Adult softball leagues are offered Sunday through Friday throughout the year for men’s, women’s, and co-ed teams at the TeWinkle Park Athletic Complex, creating recreational tailored to older adults.

Fields / Ambassadors – 40216
The D epartment c oordinates a ll a thletic fi eld r eservations f or b oth C ity a nd N ewport M esa U nified S chool District ( NMUSD) a thletic fi elds i n a ccordance w ith t he J oint U se A greement. F ields a re u sed b y t he C ity a nd community o rganizations f or s occer, t ackle a nd fl ag f ootball, r ugby, b aseball, s oftball, a nd o ther fi eld s ports. F ield ambassadors m onitor fi eld u se, r egulate t he u se o f l ights ( both p ortable a nd p ermanent), a nd o pen/close t he fields. F ield a mbassadors r egularly a udit fi eld u sers t o c onfirm l ocal r esidency w ithin e ach o rganization, a s w ell a s assist in resolving field disputes in accordance with the Field Use and Allocation Policy.

Ambassadors also assist the Police Department and Park Rangers in monitoring parks and facilities, including all Lion’s Park facilities and Fairview Park, to ensure that park visitors are not trespassing in protected and closed areas. Other ambassador duties include assistance at a variety of department special events that take place throughout the year.

Youth Sports – 40218
The Department hosts a variety of youth sports activities, including pickleball, basketball, pep squad, volleyball, running, a nd g eneral fi tness. T he p ickleball p rogram o ffers e ight ( 8) w eeks o f c linic-based i nstruction f rom September through November. The basketball and pep squad programs include eight (8) weeks of clinic-based instruction from January through March, concluding with game play and a halftime performance. The volleyball program provides eight (8) weeks of clinic-based instruction from March through May. The running program consists of eight (8) weeks of practices at local parks, preparing for an end-of-season run.

Senior Center – 40231 & Senior Mobility – 40251
The Department contracts with various independent contractors to offer fee-based classes that provide quarterly recreational, social, enrichment, arts, adaptive, and sports activities for adults and youth at City facilities, parks, and local business establishments.

Camp Costa Mesa - Day Camp – 40232
Camp Costa Mesa is a nine-week, fee-based summer Day Camp program held at Estancia Park. This camp is designed for children entering grades 1-6 in the upcoming school year. There are also one- to two-week camps during Winter Recess, Presidents’ Week, and Spring Break, all held at the Balearic Community Center. In addition, one-day camps are offered at the Balearic Community Center during the school year that coincide with NMUSD non-student day closures. Day Camps may include on-site entertainment, games, sports, arts and crafts, drama, songs, skits, educational and historical classes, character-building activities, and excursions that emphasize an active and healthy lifestyle.

Proposed Budget for
Fiscal Year 2026-2027
118 City of Costa Mesa, California 166
Playgrounds Program (R.O.C.K.S) – 40233
The R ecreation o n C ampus f or K ids ( R.O.C.K.S) P rogram p rovides a f ee-based a fterschool p rogram f or c hildren in g rades K -6 a t s elect N MUSD e lementary s chools t hroughout t he s chool y ear. T he p rogram a lso o ffers f ree summer activities for resident children entering grades 1-6 for multiple weeks at two (2) locations. This program focuses on four areas: education, fitness, recreation, and enrichment in a structured environment.

Teen Programs – 40236
The D epartment’s T een P rograms p rovide f ree a fterschool a ctivities f or t eens i n g rades 7 -12 a t t wo ( 2) l ocations:

TeWinkle Middle School and the Downtown Recreation Center. This program offers games, sports, arts and crafts, and special themed socials throughout the school year. Teen Spring and Summer Camps are fee-based seasonal camps that offer games, sports, arts and crafts, and excursions that emphasize an active and healthy lifestyle.

The Teen Program also hosts four seasonal special events which are open to all teenagers 13 – 17 years of age.

Early Childhood (L.E.A.P) Program – 40241
The Department’s recreational, fee-based Early Childhood Program, known as L.E.A.P. (Learn, Explore, Play), serves children ages 3-5 years and encourages a positive, social learning experience through the implementation of recreation activities that include directed play, games, arts and crafts, and music. This program is designed to prepare children for entrance into kindergarten. A special six-week summer camp component, Camp Mini Explorers, allows participants to continue growing during the summer months.

Adult and Youth Instructional Classes – 40242 & 40243
The Department contracts with various independent contractors to offer fee-based classes that provide quarterly recreational, social, enrichment, arts, adaptive, and sports activities for adults and youth at City facilities, parks, and local business establishments.

Concerts- 40237 & Special Recreation Events –40244
The Department hosts a variety of Special Events throughout the year, often with partners in the community. These events include the Scarecrow Festival, Concerts in the Park, Movies in the Park, a Spring Fest, Snoopy House, and Independence Day Celebration. These events provide family-friendly fun and recreational opportunities for all Costa Mesa residents. In addition, the Department assists with the Lion’s Club Fish Fry Event, as well as other privately hosted community events.

Mobile Recreation – 40245
The Department hosts a Mobile Recreation Program that provides enrichment opportunities through both structured a nd u nstructured re creational a nd e ducational a ctivities w ithin th e c ommunity w ith i nsufficient a ccess to, o r fi nancial c onstraints t o, C ity p rograms a nd/or p arks. T he M obile R ecreation P rogram c onsists o f a v an- sized vehicle stocked with athletic equipment, art supplies, games, puzzles, books, music, tables, and chairs. This program also serves as an entertainment and marketing venue at City special events.

Bark Park – 40248
The Bark Park provides a social, off-leash, open-play environment for dog owners and their dog(s). There are separate a reas f or s mall a nd l arge d ogs. T he B ark P ark P rogram i ncludes s taffing f or m aintenance, c lasses, workshops, and partnerships with community organizations.

Community Gardens – 40249
The Department has two Community Gardens that provide gardening opportunities to Costa Mesa residents. The two gardens are the Del Mar Community Garden, located at 170 Del Mar Street, which has more than 50 plots and the Hamilton Community Garden, located at 523 Hamilton Street, which has 42 plots. Each garden plot is leased annually for the purpose of growing vegetables, flowers, fruits and plants. 119City of Costa Mesa, California
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Arts and Culture (Master Plan and Commission) - 40252
In 2021, the City Council unanimously approved the City’s Arts and Culture Master Plan. This initiative signaled the Council’s belief that the time had come to appraise the value of the City’s cultural resources, to identify what strengths and weaknesses those who live, work or visit here feel exist in the local cultural landscape, and to envision ways that the City can support and advance arts and culture in Costa Mesa. The Arts and Culture Master P lan r esults f rom t he c ompilation a nd s ynthesis o f s ignificant c ommunity i nput a nd i ncludes t he f ollowing programs a nd e vents: A rt C rawl, A rts G rant p rogram, A RTventure J uried A rt E xhibition, e xhibition s paces, F ree Park Performances, Free at Segerstrom Center Campus, Poet Laureate program, Utility Box Art program, and public art.

The Arts Commission, established through a Master Plan, provides recommendations to the City Council and various City departments in areas related to Arts. The Commission’s general objectives are to ensure that the City of Costa Mesa is a place where Arts and Culture can promote civic pride and enrich the daily lives of the Costa Mesa community. The Commission is a seven-member advisory board appointed by City Council.

Administration – 50001
The Department’s Administrative staff is based in City Hall and oversees the administration of park reservations, special e vent p ermits, m odel g lider p ermits, fi lm p ermits, a nd r egistration f or r ecreation c lasses, p rograms, a nd activities. The administrative staff also are responsible for the development and publication of the recreation magazine, The Spotlight. They provide staff support to the Parks and Community Services Commission, the Arts Commission, the Cultural Arts Committee, the Fairview Park Steering Committee, the Historical Preservation Committee, as well as the Costa Mesa Foundation.

Parks and Community Services Commission - 50125
The Parks and Community Services Commission provides recommendations to the City Council and various City departments in areas related to parks, recreation, and community services programs. The Commission is a seven- member advisory board appointed by the City Council.

Fairview Park Steering Committee – 50145
The Fairview Park Steering Committee provides advice and recommendations to the City Council regarding the implementation of the Fairview Park Master Plan, the impacts of Measure AA on Capital Improvement Program projects, rehabilitation, maintenance, and activities, and recommends approval of grant applications, partnerships, and volunteer activities for the maintenance and implementation of the Fairview Park Master Plan.

Proposed Budget for
Fiscal Year 2026-2027
120 City of Costa Mesa, California 168
Fiscal Year 2025-2026 Accomplishments
■ Presented the draft Fairview Park Master Plan Update to City Council, advancing long-term planning for park restoration, preservation, and community use of one of the City’s most significant natural assets. ■ Initiated the design and implementation phases for Fairview Park mesa restoration and cultural resource preservation, reinforcing the City’s commitment to environmental stewardship and historic conservation. ■ Maintained ongoing monthly communication in partnership with the Golf Course operator, ensuring operational continuity.
■ Successfully launched a new sponsorship program, generating supplemental revenue to enhance and sustain community events.
■ Expanded pickleball opportunities through the addition and enhancement of public courts, responding to growing community demand.
■ Secured and incorporated new grant funding for the Senior Transportation Program, supporting mobility and access for seniors in the Costa Mesa community.
■ Implemented t he fi nal y ear o f t he A rts a nd C ulture M aster P lan, i ncluding p ublic a rt i nitiatives t hat e nriched c ivic spaces and community identity.
■ Continued to deliver innovative and engaging creative programming to increase participation in instructional classes such as foreign languages and karate training for competition. ■ Advanced Fairview Park restoration efforts through hands-on, public volunteer opportunities, fostering community stewardship and environmental awareness

Fiscal Year 2026-2027 Goals
■ Take initial steps to implement the Fairview Park Master Plan, focusing on priority projects that balance environmental preservation, public access, and educational opportunities. ■ Create and implement a more sustainable Senior Transportation Program. ■ Continue t o i mprove a nd s trengthen c ollaborative p artnerships w ith t he N ewport-Mesa U nified S chool D istrict to maximize shared-use facilities, joint programming, and community benefit. ■ Collaborate with Public Works to finalize and implement parks and facilities assessment initiatives, supporting data-driven maintenance, capital planning, and long-term infrastructure sustainability. ■ Continue to support and expand creative opportunities for both passive and active recreation across parks and open spaces, ensuring residents of all ages and interests can connect with nature, wellness, and play. ■ Broaden adaptive recreation and program services to serve participants with a wide range of abilities, fostering inclusive experiences that promote independence, confidence, and community connection. ■ Continue Fairview Park restoration efforts by engaging the community through hands-on volunteer opportunities that support habitat restoration, environmental education, and long-term ecological sustainability. ■ Continue to provide free or low-cost recreational, cultural, and educational programs for under-represented and underserved populations, ensuring equitable access to City services throughout the Costa Mesa community.

121City of Costa Mesa, California
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Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Fairview Park Master Plan – Provide an update
to the City Council regarding the draft plan.

;
TRUE
2 Fairview Park – Begin design process for mesa
restoration & cultural resource preservation.
;
TRUE
3 Fairview Park – Select a consultant for scope
and design of pump station & wetlands
recirculation system.

;
TRUE
4 Work with NMUSD to determine level of security
required for recently opened school fields
moving forward.
;
TRUE
5 Conduct ongoing communication and facility
management with the Golf Course operator.

;
TRUE
6 Conduct a Citywide Parks Facilities Assessment
for approximately 30 City parks.
;
TRUE
;
TRUE
7 Provide proactive communication internally and
to the public to improve response times for all
calls, emails, and inquiries.

;
TRUE

Goals and Objectives
The goals and objectives of the Parks and Community Services Department were developed in alignment with the City Council’s priorities.

Proposed Budget for
Fiscal Year 2026-2027
122 City of Costa Mesa, California 170
Performance Measures/Workload Indicators:

Workload Indicators

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actuals Estimated Estimated
Number of recreation program enrollments 16,806 14,460 16,000 15,000 Number of park permits issued 550 642 550 550
Number of permits processed via TESSA 52 92 50 70
Number of h ours p ermitted on a thletic fields (all u ser g roups) 38,115* 90,000 75,000 75,000 Total number of participants served in sports leagues 247,371* 335,000 375,000 300,000 Number of classes offered 556 463 500 500
Number of youth served in free city programs 3,035 2,903 3,500 3,000 Number of youth served in after-school programs (ages 7-12) 1,229 1,328 1,200 1,200 Number of rides provided to seniors through transportation programs 17,640 24 20,000 20,000
Number of meals provided to seniors 46,965 44,181 45,000 45,000 Number of utility box art projects completed 13 12 12 12 Number of swim lessons taught 247 328 400 300
Square yardage of non-native plant removal and habitat
enhancement at Fairview Park 8,000 8,000 8,000 8,000
Fairview Park restoration volunteer service hours 800 1,200 800 1,500 Number of facility reservations processed 3,126 3,058 3,000 3,000 Number of attendees at City special events 35,000 38,000 35,000 35,000 *Due t o i ncreased i nclement w eather, fi elds w ere c losed.

Performance Measures

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated
Percent increase of after school program enrollment N/A 140%* 50% 25% Percentage of classes offered that were completed 89.50% 90% 90% 90% Retention of participants in adult sports leagues 55% 40% 50% 55% Percent of “Excellent”/ “Good” ratings for LEAP (preschool) program 92% 100% 90% 90%
Percent o f “ Excellent”/ “ Good” ratings for ROCKS (K-6) program 80% 81% 85% 90%
Average ArtVenture rating 4.1/5 4.5/5 4.7/5 4.8/5
*Due to making capacity unlimited

Customer Service Goal
Goal
Average response time to customer email inquiries by 48 hours (72 hours if on weekends) 95%

123City of Costa Mesa, California
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Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he P arks a nd C ommunity S ervices D epartment i s $ 10.3 m illion, a n i ncrease of $ 440,927, o r 4 .5 p ercent c ompared t o t he a dopted b udget f or F iscal Y ear 2 025-26. F Y 2 026-27 f unded t he A rts & C ultural M aster P lan i n t he 1 30-Arts & C ultural M aster P lan F und w ith a t otal b udget o f $ 242,200. T his f und i s supported by Measure Q Cannabis Tax of 0.5 percent.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

PARKS AND COMMUNITY SERVICES DEPARTMENT BY FUNDING SOURCE

General Fund - 101 $ 9 ,753,352 $ 1 0,408,468 $ 9 ,101,831 $ 9 ,717,5 4 8 Arts and Culture Master Plan - 130 3 18,006 3 64,465 4 16,990 2 42,200 Disaster Fund - 150 - 65 6 - -
Park Development Fees Fund - 208 3 44,382 3 39,410 3 46,805 346,805 Senior Transportation - 241 - 65 ,660 - -

Total Parks and Community Services Department $ 10,415,740 $ 11,178,658 $ 9,865,626 $ 10,306,553 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

PARKS AND COMMUNITY SERVICES DEPARTMENT BY PROGRAM
PARKS AND COMMUNITY SERVICES - 14300

Parks and Community Services Administration - 50001
Salaries a nd B enefits $ 1 ,653,332 $ 1 ,842,620 $ 1 ,471,405 $ 1 ,872,675 Maintenance and Operations 6 32,766 4 42,113 3 86,293 386,293 Fixed Assets 3,913 - 2 ,000 2,000
Subtotal Parks and Comm. Svs. Admin. $ 2,290,011 $ 2,284,732 $ 1,859,698 $ 2,260,968

Fairview Park - 20115
Salaries a nd B enefits $ 4 03,794 $ 5 39,155 $ 5 01,900 $ 5 30,346 Maintenance and Operations 3 99,028 388,371 4 00,805 400,805 Fixed Assets 6,736 2,350 - -
Subtotal Fairview Park $ 809,558 $ 929,876 $ 902,705 $ 931,151

Network for Homeless Solutions - 20605
Salaries a nd B enefits $ 1 ,315 $ - $ - $ - Subtotal Network for Homeless Solutions $ 1,315 $ - $ - $ -

Downtown Recreation Center - 40121
Salaries a nd B enefits $ 1 69,249 $ 1 71,308 $ 10 2,105 $ 1 05,611 Maintenance and Operations 117,736 127,289 8 7,170 92,080 Subtotal Downtown Recreation Center $ 286,985 $ 298,597 $ 189,275 $ 197,691

Balearic Community Center - 40122
Salaries a nd B enefits $ 5 1,121 $ 5 3,632 $ 4 5,298 $ 4 7,922 Maintenance and Operations 1 71,452 6 2,817 13 3,165 163,944 Fixed Assets - - 8 00 800
Subtotal Balearic Community Center $ 222,573 $ 116,449 $ 179,263 $ 212,666

Proposed Budget for
Fiscal Year 2026-2027
124 City of Costa Mesa, California 172
Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

Norma Hertzog Community Center - 40123
Salaries a nd B enefits $ 4 35,336 $ 5 08,439 $ 4 48,834 $ 4 75,398 Maintenance and Operations 3 23,092 349,180 350,453 3 52,161 Subtotal Norma Hertzog Community Center $ 758,428 $ 857,619 $ 799,287 $ 827,559

Aquatics - 40212
Salaries a nd B enefits $ 5 22,671 $ 6 20,193 $ 4 92,611 $ 5 16,671 Maintenance and Operations 14 ,395 1 6,087 1 3,660 13,660 Subtotal Aquatics $ 537,066 $ 6 36,280 $ 506,271 $ 530,331

Tennis - 40213
Maintenance and Operations 4 0,868 2 3,458 34,600 3 4,600 Subtotal Tennis $ 40,868 $ 23,458 $ 34,600 $ 3 4,600

Adult Sports Basketball - 40214
Salaries a nd B enefits $ 6 6,723 $ 7 6,929 $ 6 0,983 $ 6 3,647 Maintenance and Operations 1 6,398 1 6,858 9,325 - Subtotal Adult Sports Basketball $ 83,121 $ 9 3,788 $ 70,308 $ 63,647

Adult Sports Softball - 40215
Salaries a nd B enefits $ 2 1,872 $ 2 4,602 $ 2 2,811 $ 2 4,142 Subtotal Adult Sports Softball $ 21,872 $ 24,602 $ 22,811 $ 24,142

Fields/Field Ambassadors - 40216
Salaries a nd B enefits $ 5 18,926 $ 5 00,290 $ 26 3,838 $ 2 75,485 Maintenance and Operations 257,346 263,096 4 05,735 4 34,723 Subtotal Fields/Field Ambassadors $ 776,272 $ 763,386 $ 669,573 $ 710,208

Youth Sports - 40218
Salaries a nd B enefits $ 1 52,127 $ 1 29,290 $ 1 65,549 $ 1 73,150 Maintenance and Operations 8,903 9 ,959 10 ,900 10 ,900 Subtotal Youth Sports $ 161,031 $ 139,249 $ 176,449 $ 184,050

Adult Sports Futsal - 40222
Maintenance and Operations - - 5 00 500
Subtotal Adult Sports Futsal $ - $ - $ 500 $ 5 00

Senior Center - 40231
Salaries a nd B enefits $ 7 75,304 $ 9 88,427 $ 9 16,822 $ 9 64,335 Maintenance and Operations 3 61,726 3 23,579 596,114 558,897 Fixed Assets 5 ,999 - 1,000 1 ,000
Subtotal Senior Center $ 1,143,029 $ 1,312,007 $ 1,513,936 $ 1,524,232

Day Camp - 40232
Salaries a nd B enefits $ 1 59,126 $ 1 94,888 $ 10 0,893 $ 1 07,333 Maintenance and Operations 105,858 8 4,109 8 3,400 8 3,400 Subtotal Day Camp $ 264,984 $ 278,997 $ 184,293 $ 1 90,733 125City of Costa Mesa, California
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Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

R.O.CK.S (Playgrounds) - 40233
Salaries a nd B enefits $ 1 ,235,441 $ 1 ,226,582 $ 1 ,164,296 $ 1 ,208,927 Maintenance and Operations 2 0,782 22,958 30,900 3 0,900 Subtotal R.O.C.K.S (Playgrounds) $ 1 ,256,223 $ 1,249,539 $ 1,195,196 $ 1,239,827

Teen Programs - 40236
Salaries a nd B enefits $ 2 34,084 $ 2 61,135 $ 1 61,151 $ 1 68,600 Maintenance and Operations 24,203 57,020 6 6,150 66,150 Subtotal Teen Programs $ 258,286 $ 3 18,154 $ 227,301 $ 234,750

Concerts - 40237
Maintenance and Operations 1,882 1 ,812 1 0,000 10,000 Subtotal Concerts $ 1,882 $ 1,812 $ 10,000 $ 10,000

Early Childhood - 40241
Salaries a nd B enefits $ 2 85,209 $ 3 51,380 $ 3 97, 327 $ 4 18,515 Maintenance and Operations 8 ,394 8,563 9,050 9, 050 Subtotal Early Childhood $ 293,603 $ 359,942 $ 406,377 $ 427,565

Adult Instructional Classes - 40242
Salaries a nd B enefits $ - $ 1 53 $ 1 88 $ 1 88 Maintenance and Operations 22,939 21,516 50,000 5 0,000 Subtotal Adult Instructional Classes $ 22,939 $ 21,669 $ 50,188 $ 50,188

Youth Instructional Classes - 40243
Maintenance and Operations 192,821 1 90,141 232,300 1 86,620 Subtotal Youth Instructional Classes $ 1 92,821 $ 190,141 $ 2 32,300 $ 186,620

Special Recreation Events - 40244
Salaries a nd B enefits $ 4 6,763 $ 9 0,561 $ - $ - Maintenance and Operations 1 59,399 188,251 45,200 4 5,200 Subtotal Special Recreation Events $ 206,162 $ 278,812 $ 4 5,200 $ 45,200

Mobile Recreation - 40245
Salaries a nd B enefits $ 6 7,106 $ 1 07, 276 $ 3 4,099 $ 3 7,157 Maintenance and Operations 3 ,106 2 ,228 3,475 3 ,475 Subtotal Mobile Recreation $ 70,212 $ 109,504 $ 37,574 $ 40,632

Bark Park - 40248
Salaries a nd B enefits $ 1 2,984 $ 13 ,763 $ 2 5,104 $ 26 ,301 Maintenance and Operations 5 03 326 1 ,600 1,600 Subtotal Bark Park $ 13,488 $ 14,089 $ 26,704 $ 27,901

Community Gardens - 40249
Salaries a nd B enefits $ 3 6,701 $ 4 3,995 $ 1 9,594 $ 2 0,271 Maintenance and Operations 4,661 5,034 3 ,600 3,600 Subtotal Community Gardens $ 41,362 $ 49,029 $ 23,194 $ 23,871 Proposed Budget for
Fiscal Year 2026-2027
126 City of Costa Mesa, California 174
Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

Animal Care Services - 40250
Salaries a nd B enefits $ 5 ,572 $ - $ - $ - Subtotal Animal Care Services $ 5 ,572 $ - $ - $ -

Senior Mobility Program - 40251
Salaries a nd B enefits $ 2 4,687 $ - $ 1 9,883 $ 2 0,570 Maintenance and Operations 2 47,845 3 18,740 2 ,800 2,800 Subtotal Senior Mobility Program $ 2 72,532 $ 318,740 $ 22,683 $ 2 3,370

Arts and Culture Master Plan - 40252
Salaries a nd B enefits $ 1 75,213 $ 1 82,567 $ 1 79,690 $ 3 0,150 Maintenance and Operations 1 42,794 181,898 2 37,300 212,050 Subtotal Arts and Culture Master Plan $ 3 18,006 $ 3 64,465 $ 4 16,990 $ 242,200

Save Our Youth - 40255
Maintenance and Operations 3 8,584 4 2,000 4 2,000 42,000

Subtotal Save Our Youth $ 38,584 $ 42,000 $ 42,000 $ 42,000

Parks, Arts and Community Services Commission - 50125
Maintenance and Operations 8,600 8,142 7, 950 7,950 Subtotal Parks, Arts and Comm. Svs. Comm. $ 8,600 $ 8,142 $ 7,950 $ 7,950

Cultural Arts Committee - 50190
Maintenance and Operations 1 3,159 10 ,849 1 3,000 1 2,000 Subtotal Cultural Arts Committee $ 13,159 $ 10,849 $ 13,000 $ 12,000

Emergency Services - 51040
Maintenance and Operations - 1,391 - -
Subtotal Emergency Services $ - $ 1,391 $ - $ -

TOTAL PARKS AND COMMUNITY SERVICES DEPARTMENT

Salaries a nd B enefits $ 7 ,058,462 $ 7, 927, 8 41 $ 6 ,594,381 $ 7, 087, 395 Maintenance and Operations 3 ,340,631 3,248,467 3 ,267,4 45 3 ,215,358 Fixed Assets 1 6,647 2,350 3 ,800 3,800

Total Parks and Community Services Department $ 10,415,740 $ 11,178,658 $ 9,865,626 $ 10,306,553 127City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PARKS AND COMMUNITY SERVICES DEPARTMENT BY ACCOUNT: ALL FUNDS Salaries and Benefits
Salaries and Wages $ - $ - $ ( 298,366) $ - Regular Salaries - Non-Sworn 2,373,621 2, 585,373 2,598,453 2 ,630,878 Regular Salaries - Part-Time 2, 974,256 3,334,536 2 ,564,558 2,643,879 Overtime 99,000 117,897 1 6,340 16,340
Vacation/Comp. Time Cash Out 8 ,218 24,495 3,760 3 ,760 Holiday Allowance 5 ,730 1 1,580 1,802 1,802 Separation Pay-Off 2 2,165 2 ,172 940 9 40
Other Compensation 1 9,199 3 4,369 3 5,933 39,342 Cafeteria Plan 500,230 5 47,900 5 41,296 5 71,377 Medicare 82,797 91,129 7 5,288 9 4,528
Retirement 9 67,710 1 ,169,511 1,042,077 1,072,249 Executive Prof Development 3,129 1,940 5,400 5 ,400 Auto Allowance 2,407 6 ,938 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 7,058,462 $ 7,927,841 $ 6,594,381 $ 7,087,395

Maintenance and Operations
Stationery a nd O ffice $ 2 1,314 $ 1 8,727 $ 2 2,150 $ 2 2,150 Multi-Media, Promos, Subscrpt. 300,157 2 92,208 201,650 10 5,456 Small Tools and Equipment 2 64,763 44,804 6 8,555 6 8,430 Uniforms and Clothing 23,230 1 7,818 2 6,700 25,700 Safety and Health 14 ,091 9 ,968 16,250 16,250 Maintenance and Construction 12,205 22,208 1 5,600 15,600 Electricity - Buildings & Fac. 14 6,277 155,736 9 4,570 9 4,570 Electricity - Power 34,010 1 5,460 26,600 26,600 Gas 23,651 2 4,366 2 0,400 20,400
Water - Domestic 13,345 18,405 18,100 1 8,100 Janitorial and Housekeeping 1 44,176 151,470 158,630 158,630 Telephone/Radio/Communications 25 ,448 23,236 2 0,900 2 0,900 Business Meetings 5,427 10 ,620 2 00 2 00
Mileage Reimbursement 9 1 80 6 00 6 00
Dues and Memberships 4 ,298 3 ,952 4,490 4,490 Board Member Fees 17,000 16,200 1 6,100 1 5,206 Professional Development 20,193 30,717 16,025 1 6,025 Landscaping and Sprinklers 5 8,505 5 1,180 5 0,000 5 0,000 Office F urniture - - 2 ,000 2,000
Office E quipment 7 ,393 6,789 4 ,350 4 ,350 Other Equipment 31,881 2 7,706 2 2,370 22,370 Consulting 67 2,344 7 97,704 720,088 7 19,822 Medical and Health Inspection 475 85 0 700 700

Proposed Budget for
Fiscal Year 2026-2027
128 City of Costa Mesa, California 176
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PARKS AND COMMUNITY SERVICES DEPARTMENT BY ACCOUNT: ALL FUNDS Maintenance and Operations (Continued)
Recreation 4 33,038 4 77,614 645,620 6 22,374 Principal Payments 78,938 82,490 - -
Interest Payments 3 ,552 1,814 - -
External Rent 5 68,815 5 11,628 706,534 7 66,301 Grants, Loans and Subsidies 7, 500 2 0,000 15,500 1 4,170 Internal Rent Central Services 31,196 30,896 20,501 20,501 Internal Rent Postage 58,306 68,441 4 2,137 4 2,137 Internal Rent - Maintenance 4 7,300 4 7,300 47,300 47,300 Internal Rent - Repl Cost 14 ,400 14 ,400 14 ,400 14,400 Internal Rent - Fuel 23,186 1 8,300 18,300 18,300 Internal Rent Genl Liability 8 8,367 8 8,367 8 8,367 88,367 Internal Rent Workers’ Comp 109,180 109,180 1 09,180 1 09,180 Internal Rent Unemployment 1 2,078 1 2,078 12,078 12,078 Taxes and Assessments 23,193 25 ,655 20,500 31,701 Emergency Protective Measure 1,391 - - -
Subtotal Maintenance & Operations $ 3,340,631 $ 3,248,467 $ 3,267,445 $ 3,215,358

Fixed Assets
Other Equipment 1 6,647 2 ,350 3 ,800 3,800 Subtotal Fixed Assets $ 16,647 $ 2,350 $ 3,800 $ 3 ,800

Total Parks and Community Services
Department $ 10,415,740 $ 11,178,658 $ 9, 865,626 $ 10,306,553 129City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PARKS AND COMMUNITY SERVICES DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY Salaries and Benefits
Salaries and Wages $ - $ - $ ( 298,366) $ - Regular Salaries - Non-Sworn 2, 262,756 2 ,466,576 2 ,480,913 2 ,630,878 Regular Salaries - Part-Time 2, 974,256 3,334,536 2 ,564,558 2,643,879 Overtime 9 2,152 1 14,632 1 6,340 16,340
Vacation/Comp. Time Cash Out 8 ,218 24,495 3,760 3 ,760 Holiday Allowance 5 ,730 1 1,580 1,802 1,802 Separation Pay-Off 2 2,165 2 ,172 940 9 40
Other Compensation 1 9,199 3 4,369 3 5,345 39,342 Cafeteria Plan 481,256 528,269 5 21,496 5 71,377 Medicare 80,971 8 9,257 7 3,575 9 4,528
Retirement 931,009 1 ,129,855 1,002,028 1,042,099 Executive Prof Development 3,129 1,940 5,400 5 ,400 Auto Allowance 2,407 6 ,938 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 6,883,249 $ 7,744,619 $ 6,414,691 $ 7,057,245

Maintenance and Operations
Stationery a nd O ffice $ 2 1,314 $ 1 8,727 $ 2 2,150 $ 2 2,150 Multi-Media, Promos, Subscrpt. 2 33,367 220,004 1 29,150 4 0,670 Small Tools and Equipment 2 64,763 44,804 6 8,555 6 8,430 Uniforms and Clothing 23,230 1 7,818 2 6,700 25,700 Safety and Health 14 ,091 9 ,968 16,250 16,250 Maintenance and Construction 12,205 22,208 1 5,600 15,600 Electricity - Buildings & Fac. 14 6,277 155,736 9 4,570 9 4,570 Electricity - Power 34,010 1 5,460 26,600 26,600 Gas 23,651 2 4,366 2 0,400 20,400
Water - Domestic 13,345 18,405 18,100 1 8,100 Janitorial and Housekeeping 1 44,176 151,470 158,630 158,630 Telephone/Radio/Communications 25 ,448 23,236 2 0,900 2 0,900 Business Meetings 5,427 10 ,620 2 00 2 00
Mileage Reimbursement 9 1 80 6 00 6 00
Dues and Memberships 4 ,298 3 ,952 4,490 4,490 Board Member Fees 8,600 8 ,100 7,700 7,700
Professional Development 20,193 30,717 16,025 1 6,025 Landscaping and Sprinklers 55,482 4 8,893 5 0,000 5 0,000 Office F urniture - - 2 ,000 2,000
Office E quipment 7 ,393 6,789 4 ,350 4 ,350 Other Equipment 30,253 2 7,706 1 6,870 16,870 Consulting 3 39,348 450,455 3 76,283 3 76,283 Medical and Health Inspection 475 85 0 700 700

Proposed Budget for
Fiscal Year 2026-2027
130 City of Costa Mesa, California 178
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PARKS AND COMMUNITY SERVICES DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY Maintenance and Operations (Continued)
Recreation 372,935 408,496 504,220 496,020
Principal Payments 78,938 82,490 - -
Interest Payments 3 ,552 1,814 - -
External Rent 5 68,815 445,968 706,534 7 66,301 Grants, Loans and Subsidies - - 3 ,000 3 ,000 Internal Rent Central Services 31,196 30,896 20,501 20,501 Internal Rent Postage 58,306 68,441 4 2,137 4 2,137 Internal Rent - Maintenance 4 7,300 4 7,300 47,300 47,300 Internal Rent - Repl Cost 14 ,400 14 ,400 14 ,400 14,400 Internal Rent - Fuel 23,186 1 8,300 18,300 18,300 Internal Rent Genl Liability 8 8,367 8 8,367 8 8,367 88,367 Internal Rent Workers’ Comp 109,180 109,180 1 09,180 1 09,180 Internal Rent Unemployment 1 2,078 1 2,078 12,078 12,078 Taxes and Assessments 23,193 25 ,655 20,500 31,701 Emergency Protective Measure 1,391 - - -
Subtotal Maintenance & Operations $ 2,860,191 $ 2,663,849 $ 2,683,340 $ 2,656,503

Fixed Assets
Other Equipment 9,911 - 3 ,800 3,800
Subtotal Fixed Assets $ 9,911 $ - $ 3,800 $ 3 ,800

Total Parks and Community Services
Department $ 9,753,352 $ 10,408,468 $ 9,101,831 $ 9,717,548 131City of Costa Mesa, California
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City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
180
Information Technology Department
Information Technology
Department
181
Information Technology Department
Information Technology
Administration

1.0 FTE - Information Technology
Director

1.0 FTE - Information Technology
Manager

1.0 FTE - Information Technology
Project Manager

1.0 FTE- Cyber Security Analyst

1.0 FTE - Executive Assistant

1.0 FTE - Senior Management
Analyst

1.0 FTE - Oﬃce Specialist II
Systems and Programming

1.0 FTE - Systems & Programming
Supervisor

4.0 FTE - Senior Programmer Analyst

4.0 FTE - Programmer Analyst II
Computer Operations and
Networking

1.0 FTE - Computer Operations &
Networking Supervisor

5.0 FTE - Network Administrator
Proposed Budget for
Fiscal Year 2026-2027
134 City of Costa Mesa, California 182
The I nformation T echnology D epartment ( IT) i s r esponsible f or ne twork a dministration; s oftware de velopment a nd ins tallation; mainte nance of hardware and sof t ware , including upgrades and re place me nts; database manage me nt ; wireless phones; and the suppor t and oversight of all technology- related products and ser vices for all depar tments, including the Police and Fire and Rescue Departments of the City of Costa Mesa. The Department’s daily activities include, b ut a re n ot l imited t o: m aintenance o f a ll c omputer s ystems; e nsuring t hat v irus p rotection s oftware a r e u p- t o-d a t e a n d f u n ct i o n i n g p r o p e r l y; m a i n t e n a n c e o f t h e h e l p d e s k t o h e l p t r o u b l e s h o o t c o m p u t e r -r e l a t e d problems; a nd e nsuring t hat e mployees a re c onnected a nd t he C ity w ebsites t hat a re a ccessible t o t he p ublic, a re working properly and securely. IT is also responsible for the operation, maintenance, deployment, and utilization of all City computers. The department has 22 full-time positions composed of three management, two supervisory, 14 professionals, and three administrative support.

Information Technology Department (IT) has three divisions:
■ Administration
■ Computer Operations and Networking
■ Systems and Programming

Information Technology Administration — 14600

Administrative Services – 50001
Coordinates a nd s upervises t he D epartment’s a ctivities; m anages t he b udget a nd p rocurement p rocess f or t he Department; manages the networking resources of the City; and advises the City Manager and the City Council on computer-related technological issues.

Computer Operations And Networking – 50710
Operates and monitors computer equipment in support of both Public Safety and general City services in a 7-day, 24 -hour o peration. M aintains d ata fi les a nd p rocesses b usiness a pplications a nd r eports d istribution i n a networked client-server environment. Monitors cybersecurity applications to ensure City networks are secure.

Systems And Programming – 50720
Supports and enhances applications for Public Safety and general City services. Coordinates systems implementations, maintenance, and processing solutions for ad hoc data processing requests in networked client- server and internet/intranet environments.

135City of Costa Mesa, California
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Fiscal Year 2025-2026 Accomplishments
■ Installed temporary battery backup power for City Hall to increase runtime and reliability. ■ Upgraded Telephone System to be Voice Over IP capable. ■ Initiated the Enterprise-Wide Network Cabling Upgrade in preparation for new IT equipment. ■ Completed the deployment of Single Device Strategy to reduce costs of ownership. ■ Updated and replaced outdated City Hall fiber connections. ■ Provide funding for CAD/RMS Replacement.
■ Began to implement a new ERP system.
■ Completed replacement of outdated security camera systems for the Police Department. ■ Upgrade the GIS Enterprise system to version 11.3 and establish a backup system for critical data. ■ Upgraded all Cyber Security Systems to the latest versions. ■ Replaced PD 2-Factor Authentication System for DOJ Compliance. ■ Updated CAD & RMS Systems to enhance current infrastructure requirements. ■ Enhance and support TESSA modules, and reports for departments.

Fiscal Year 2026-2027 Goals
■ Develop a Continuity of Operation Plan for the IT Department. ■ Complete the Disaster Recovery Plan updates.
■ Develop a new 5-year IT Strategic Plan.
■ Deploy 150 user Desktops and Laptops.
■ Plan and initiate the enterprise replacement of switches, routers and firewalls. ■ Complete the GIS Master Plan Road Map.
■ Install redundant Internet Connectivity for Public Safety and City ERP requirements. ■ Implement new Enterprise Resource Planning (ERP) for Financials and Human Capital Management. ■ Initiate CAD/RMS Business Process and Needs Analysis review with independent third party vendor. ■ Planning for demonstration and replacement of all Public Safety Mobile Data Computers.

Proposed Budget for
Fiscal Year 2026-2027
136 City of Costa Mesa, California 184
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Develop a Continuity of Operation Plan for the IT
Department. ;
TRUE
;
TRUE
;
TRUE
2 Complete the Disaster Recovery Plan updates. ;
TRUE
;
TRUE
;
TRUE
;
TRUE
3 Develop a new 5-year IT Strategic Plan. ;
TRUE
;
TRUE
;
TRUE
;
TRUE
4 Deploy 150 user Desktops and Laptops. ;
TRUE
;
FALSE
;
TRUE
5 Plan and initiate the enterprise replacement of
switches, routers and firewalls. ;
TRUE
;
TRUE
;
TRUE
6 Deploy VOIP phones for the enterprise to replace
obsolete analog devices.
;
TRUE
;
TRUE
7 Complete the GIS Master Plan Road Map. ;
TRUE
;
TRUE
;
TRUE
;
TRUE
8 Install redundant Internet Connectivity for Public
Safety and City ERP requirements.
;
TRUE
;
TRUE
;
TRUE
9 Hire replacement for Programmer Analyst II/
Application Specialist.

;
TRUE
;
TRUE
;
TRUE
10 Implement Citizen Request Management
System.
;
TRUE
;
TRUE
;
TRUE
11 Implement new Enterprise Resource Planning
(ERP) for Financials and Human Capital
Management.

;
TRUE
;
TRUE
;
TRUE
12 Initiate CAD/RMS Business Process and Needs
Analysis review with independent 3rd party
vendor.
;
TRUE
;
TRUE
;
TRUE
;
TRUE
13 Planning for demonstration and replacement of
all Public Safety Mobile Data Computers.

;
TRUE
;
TRUE
;
TRUE
;
TRUE
14 Uninterruptible Power Supply for City Hall Server
Room, Emergency Operations Switch Room and
PD Switch Room.
;
TRUE
;
TRUE
Goals And Objectives
The goals and objectives of the Information Technology Department were developed in alignment with the City Council’s goals and priorities.
137City of Costa Mesa, California
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Performance Measures/Workload Indicators:

Workload Indicators

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Estimated Estimated Estimated
Number of computers and monitors maintained 1,744 2529 2,529 2,971 Number of forms and Help Desk Requests resolved 2280 2372 2,500 2,500 Number of mobile devices and laptops 700 265 275 275
Number of servers maintained 204 166 175 178
Number of miscellaneous devices maintained 329 231 241 291 Number of City developed software applications supported 7 7 7 7 Number of vendor software applications maintained* 54 53 55 55 Percent of time with server availability 99.70% 99.70% 99.50% 99.50% Cybersecurity alerts 668,310 500,000 600,000 735,141

*It i s difficult t o d etermine t he e xact number o f v endor s oftware a pplications m aintained a s e ach department has different requirements.

Performance Measures

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated
Desktop, laptops, Servers, Printers, Smart Phone, Monitors &Tablets per Network Administrator 675 to 1 675 to 1 675 to 1 681 to 1 Number of Software & Applications per Programmer 12 to 1 12 to 1 12 to 1 12 to 1 Percentage of ITSP projects completed per Fiscal Year 65% 75% 70% 67% Percentage of ITSP projects in progress per Fiscal Year 27% 25% 16% 28% Percentage of ITSP projects not yet initiated per Fiscal Year * 8% 0% 14% 5% *In P hase I , t otal 31 I TSP p rojects identified f or d elivery

Customer Service Goal
Goal
Average response time to manage after-hours support call within 30 minutes 95%

Proposed Budget for
Fiscal Year 2026-2027
138 City of Costa Mesa, California 186
Budget Narrative
The F iscal Y ear 2 026-27 A ll F unds b udget i s $ 8.0 m illion, a n i ncrease o f $ 0.3 m illion o r 4 p ercent t o t he a dopted budget for Fiscal Year 2025-26. This $1.5 million increase to the IT Replacement Fund reflects the full 1.5 percent General F und r evenue c ontribution a s w ell a s t he s cheduled F Y 2 025–26 d eferral r epayment o f $ 116,310. T he I T Replacement Fund (Fund 603) continues to be fully supported by the Information Technology Needs allocation established in the Municipal Code, which dedicates 1.5 percent of General Fund revenues to this purpose.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

INFORMATION TECHNOLOGY DEPARTMENT BY FUNDING SOURCE

General Fund - 101 $ 5 ,567,967 $ 6 ,029,490 $ 6,570,716 $ 6 ,625,320 Disaster Fund - 150 - 2 ,369 - -
IT Replacement Fund - 603 8 02,719 67 9,980 1 ,097,836 1,355,827 Total Information Technology Department $ 6 ,370,686 $ 6, 711,838 $ 7 ,668,552 $ 7 ,981,147 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

INFORMATION TECHNOLOGY DEPARTMENT BY PROGRAM
INFORMATION TECHNOLOGY - 14600
IT Administration - 50001

Salaries a nd B enefits $ 78 4,630 $ 1 ,313,370 $ 1 ,384,793 $ 1 ,553,414 Maintenance and Operations 49,595 5 4,670 75,347 46,347 Fixed Assets 2,168 2 ,123 1 0,000 5 ,000
Subtotal IT Administration $ 8 36,394 $ 1,370,162 $ 1,470,140 $ 1,604,761 Computer Operations - 50710
Salaries a nd B enefits $ 1 ,961,355 $ 1 ,618,305 $ 1 ,477,062 $ 1 ,579,761 Maintenance and Operations 7 52,403 67 2,331 729,522 390,196 Fixed Assets 7 16,099 2 03,714 1 ,034,181 1 ,519,370 Subtotal Computer Operations $ 3,429,858 $ 2,494,350 $ 3,240,765 $ 3,489,327 Computer Systems Development - 50720
Salaries a nd B enefits $ 1 ,395,147 $ 1 ,945,608 $ 1 ,958,074 $ 2 ,061,986 Maintenance and Operations 5 6,651 64,692 160,527 78,027 Fixed Assets 6 52,636 834,656 839,046 7 47,046 Subtotal Computer Systems Develop. $ 2,104,435 $ 2,844,957 $ 2,957,647 $ 2,887,059

Emergency Services - 51040

TOTAL INFORMATION TECHNOLOGY DEPARTMENT
Salaries a nd B enefits $ 4 ,141,132 $ 4 ,879,652 $ 4 ,819,929 $ 5 ,195,161 Maintenance and Operations 85 8,650 791,693 965,396 5 14,570 Fixed Assets 1,370,904 1 ,040,493 1,883,227 2 ,271,416 Total Information Technology Department $ 6 ,370,686 $ 6,711,838 $ 7,668,552 $ 7,981,147 139City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
INFORMATION TECHNOLOGY DEPARTMENT BY ACCOUNT: ALL FUNDS Salaries and Benefits
Salaries and Wages $ - $ - $ (4 8,870) $ -
Regular Salaries - Non-Sworn 2 ,641,898 3 ,192,697 3,211,801 3,434,326 Regular Salaries - Part-Time 1,637 - - -
Overtime 1 36,307 1 70,133 1 10,605 1 10,605 Vacation/Comp. Time Cash Out 1 2,207 8,539 3,040 3,040 Holiday Allowance 7, 341 8,296 - -
Other Compensation 2 3,471 24,639 29,872 17,140 Cafeteria Plan 4 06,782 5 06,794 505,044 5 54,532 Medicare 4 2,847 51,664 4 8,392 54,278
Retirement 8 57,328 902,337 945,545 1 ,006,740 Executive Prof Development 4 ,397 7, 615 7, 600 7, 600 Auto Allowance 6 ,919 6 ,938 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 4,141,132 $ 4,879,652 $ 4,819,929 $ 5 ,195,161

Maintenance and Operations
Stationery a nd O ffice $ 6 ,583 $ 6 ,655 $ 4 ,800 $ 4 ,800 Multi-Media, Promos, Subscrpt. 541 1 18 700 700 Small Tools and Equipment 2 ,005 1 ,793 2 ,000 2,000 Safety and Health 7 47 600 1 ,000 1 ,000
Telephone/Radio/Communications 291,286 275,923 260,600 260,600 Business Meetings 1 ,865 3,494 4 ,000 4,000 Mileage Reimbursement 72 3 65 3 3 50 3 50
Dues and Memberships - 2 ,000 1 ,000 1 ,000 Professional Development 3 3,059 41,353 70,732 6 32 Office E quipment 5 69 644 5 ,000 5 ,000
Other Equipment 3 24,541 - - -
Consulting 6 8,771 7 2,067 1 75,447 9 9,447 Principal Payments 94,773 3 42,771 - -
Interest Payments 1,804 1 2,556 - -
External Rent 2,337 1,940 5 ,000 5 ,000
Depreciation - - 4 04,726 100,000
Internal Rent Central Services - - 1 ,007 1 ,007 Internal Rent Postage 34 1 13 21 2 1
Internal Rent Genl Liability 15,594 15,594 1 5,594 1 5,594 Internal Rent Workers’ Comp 1 1,841 1 1,841 11,841 11,841 Internal Rent Unemployment 1 ,578 1 ,578 1,578 1 ,578 Subtotal Maintenance & Operations $ 858,650 $ 791,693 $ 965,396 $ 514,570

Fixed Assets
Office F urniture $ 2 ,168 $ 2 ,123 $ 1 0,000 $ 5 ,000 Other Equipment 1,368,735 1,038,370 1,873,227 2,266,416 Subtotal Fixed Assets $ 1,370,904 $ 1,040,493 $ 1,883,227 $ 2,271,416

Transfers Out

Total Information Technology Department $ 6,370,686 $ 6,711,838 $ 7,668,552 $ 7,981,147 Proposed Budget for
Fiscal Year 2026-2027
140 City of Costa Mesa, California 188
Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
INFORMATION TECHNOLOGY DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY Salaries and Benefits
Salaries and Wages $ - $ - $ (4 8,870) $ -
Regular Salaries - Non-Sworn 2,485,948 2 ,729,846 2 ,745,616 2,909,376 Regular Salaries - Part-Time 1,637 - - -
Overtime 13 6,303 1 69,783 1 10,605 1 10,605 Vacation/Comp. Time Cash Out 1 2,207 8,539 3,040 3,040 Holiday Allowance 7, 341 7,602 - -
Other Compensation 2 4,856 22,650 2 7,541 16,070 Cafeteria Plan 3 84,047 42 6,286 4 22,496 4 63,380 Medicare 40,178 44,412 4 0,390 45,958
Retirement 702,561 775,837 8 13,701 8 63,794 Executive Prof Development 5,293 5 ,410 5,400 5 ,400 Auto Allowance 6 ,919 6 ,938 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 3,807,287 $ 4,197,303 $ 4,126,819 $ 4,424,523

Maintenance and Operations
Stationery a nd O ffice $ 6 ,583 $ 6 ,655 $ 4 ,800 $ 4 ,800 Multi-Media, Promos, Subscrpt. 541 1 18 700 700 Small Tools and Equipment 2 ,005 1 ,793 2 ,000 2,000 Safety and Health 7 47 600 1 ,000 1 ,000
Telephone/Radio/Communications 291,286 275,923 260,600 260,600 Business Meetings 1 ,865 3,494 4 ,000 4,000 Mileage Reimbursement 72 3 65 3 3 50 3 50
Dues and Memberships - 2 ,000 1 ,000 1 ,000 Professional Development 3 3,059 41,353 70,732 6 32 Office E quipment 5 69 644 5 ,000 5 ,000
Consulting 62,783 7 2,067 1 75,447 9 9,447
Principal Payments 94,773 3 42,771 - -
Interest Payments 1,804 1 2,556 - -
External Rent 2,337 1,940 5 ,000 5 ,000
Internal Rent Central Services - - 1 ,007 1 ,007 Internal Rent Postage 34 1 13 21 2 1
Internal Rent Genl Liability 15,594 15,594 1 5,594 1 5,594 Internal Rent Workers’ Comp 1 1,841 1 1,841 11,841 11,841 Internal Rent Unemployment 1 ,578 1 ,578 1,578 1 ,578 Subtotal Maintenance & Operations $ 528,121 $ 791,693 $ 560,670 $ 414,570

Fixed Assets
Office F urniture $ 2 ,168 $ 2 ,123 $ 1 0,000 $ 5 ,000 Other Equipment 1 ,230,391 1,038,370 1,873,227 1 ,781,227 Subtotal Fixed Assets $ 1,232,559 $ 1,040,493 $ 1,883,227 $ 1,786,227

Transfers Out
Total Information Technology Department $ 5,567,967 $ 6,029,490 $ 6,570,716 $ 6,625,320 141City of Costa Mesa, California
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City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
190
PoliceDepartment
Police
Department
191
Police Department
Police Administration

1.0 FTE - Police Chief

1.0 FTE- Deputy Police Chief

1.0 FTE - Crime Prevention Specialist

2.0 FTE - Executive Assistant

1.0 FTE - Police Lieutenant

1.0 FTE - Police Oﬃcer

2.0 FTE - Police Sergeant

1.0 FTE - Public Affairs Manager

1.0 FTE - Range Master

1.0 FTE - Senior Management Analyst

1.0 FTE - Police Training Assistant

2.0 FTE - Crime Analyst

0.50 FTE - Part-Time
Police Support Services

1.0 FTE - Police Captain

1.0 FTE - Administrative Assistant

1.0 FTE- Accounting Specialist II

1.0 FTE - Civilian Investigator

1.0 FTE - Communications Installer

3.0 FTE - Community Services Specialist

1.0 FTE - Court Liaison

1.0 FTE - Crime Scene Investigation Supervisor

4.0 FTE - Crime Scene Investigator

1.0 FTE - Electronics Technician

1.0 FTE - Oﬃce Specialist II

1.0 FTE - Police Lieutenant

25.0 FTE - Police Oﬃcer

1.0 FTE - Police Records Bureau Supervisor

3.0 FTE - Police Records Shift Supervisor

4.0 FTE - Police Sergeant

3.0 FTE - Property/Evidence Specialist

1.0 FTE - Property/Evidence Supervisor

4.0 FTE - Public Safety Dispatcher Supervisor

17.0 FTE - Senior Public Safety Dispatchers

1.0 FTE - Senior Communications Supervisor

15.0 FTE - Senior Police Records Technician

0.5 FTE - Telecommunications Manager

0.5 FTE - Emergency Services Manager

1.0 FTE - Records & Property Evidence Manager

7.58 FTE - Part-Time
Police Field Operations

1.0 FTE - Police Captain

3.0 FTE - Animal Control Oﬃcer

1.0 FTE- Animal Control Supervisor

1.0 FTE- Animal Services Coordinator

5.0 FTE - Community Services Specialist

10.0 FTE- Custody Oﬃcers

2.0 FTE- Custody Supervisor

6.0 FTE - Park Ranger

5.0 FTE - Police Lieutenant

1.0 FTE- Permit Processing Specialist

1.0 FTE - Senior Police Oﬃcer

82.0 FTE - Police Oﬃcer

16.0 FTE - Police Sergeant

14.17 FTE - Part-Time
Proposed Budget for
Fiscal Year 2026-2027
144 City of Costa Mesa, California 192
The Police Department is tasked with protecting life and property while preserving the peace. The department has 242 f ull-time p ositions, o f w hich 1 42 a re s worn a nd 1 00 a re p rofessional s taff. F ull-time s taffing i s c omposed o f 1 4 management p ositions, 3 5 s upervisory, a nd 1 93 l ine-level p ositions. P art-time s taffing c onsists o f 2 2.25 f ull-time equivalents. T he d epartment i s c omprised o f t hree d ivisions; a nd e ach d ivision i s f urther s plit i nto d ifferent u nits or programs. The three divisions are as follows:
■ Police Administration
■ Police Field Operations
■ Police Support Services
Police Administration — 15100
Administration – 50001
Conducts the department’s overall direction and planning with input from other divisions; provides advice to the City M anager a nd C ity C ouncil o n p ublic s afety i ssues; p rovides i nternal i nvestigations t hrough t he P rofessional S t a n d a r d s U n i t ; p e r f o r m s p u b l i c a f f a i r s s e r v i c e s ; p e r f o r m s c r i m e a n a l y s i s a n d i m p l e m e n t s c r i m e p r e v e n t i o n strategies; and manages department budget and grant administration.

Training – 10133
Provides and coordinates training programs, and the recruitment and selection of candidates for vacant positions within t he d epartment, a dhering t o t he g uidelines e stablished b y s tatutory a nd s tate-mandated P eace O fficer Standard a nd T raining ( POST) r equirements f or s worn a nd c ivilian p ersonnel; d evelops a nd e valuates d aily in-service programs.

Police Field Operations — 15300
Patrol Services – 10111
Provides public safety services through patrol-related policing activity; coordinates community-oriented policing services; s upervises t he P olice R eserve P rogram; p rovides p ublic p ark s afety s ervices t hrough t he P ark R anger Unit; and provides business-related services to the public via the front desk.

Traffic Safety – 10113
Enforces S tate a nd C ity t raffic l aws; p rovides f ollow-up i nvestigation a nd p rosecution o f t raffic-related c riminal cases; and coordinates personnel to respond to and investigate traffic collisions.

Contract & Special Events – 10114
Provides s pecial e vent p ublic s afety a nd t raffic m anagement s ervices r equested b y t he c ommunity o n a c ontract- for-pay basis.

Jail Operations – 10137
Manages and operates the department’s jail facility, which includes the care and custody of all arrestees, booking, processing and transportation. The jail is staffed and operated 24 hours a day, 365 days a year.

Animal Services – 10139
Regulates, c ontrols, a nd p revents r abies i n t he w ild a nd d omesticated a nimal p opulation i n t he C ity; i mpounds strays or unlicensed animals; and enforces those laws and ordinances applying to animals within the City.

Oversees the contract for animal sheltering and adoption services and collaborates with shelter provider. Organizes and coordinates two pet-related community engagement events in the fall and spring to promote pet adoptions, educational pet care, and interactive demonstrations.

Police Support Services — 15400
Administration – 50001
Provides e ssential l ogistical s upport s ervices t o t he P olice D epartment t hrough t he b elow-listed p rograms; responsible for computer-related activities associated with the 24-hour operation of the City’s public safety computer s ystem; a nd r esponsible f or t he r esearch a nd d evelopment o f n umerous p rograms, i ncluding s afety equipment, new laws and regulations, and policy development. 145City of Costa Mesa, California
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Helicopter Patrol – 10112
Provides helicopter patrol services through a contract with the City of Huntington Beach.

Crime Investigation – 10120
Investigates c riminal a ctivities i ncluding: h omicide, r ape, r obbery, a nd a ssault; l arcenies, i ncluding g rand t heft, auto t heft, a nd f raud; r esidential, c ommercial, a nd v ehicle b urglaries r eported i n t he C ity; f raudulent c hecks a nd forgery cases, including identity theft, crimes against persons and property, and where the suspect or victim i s a j u v e n i l e . T h e p r o g r a m o b j e c t i v e i s t h e i n v e s t i g a t i o n o f P a rt I C r i m e s ; c a s e p r e p a r a t i o n ; t h e a p p r e h e n s i o n , prosecution and conviction of perpetrators; and the recovery of stolen property.

Special Investigations Unit – 10127
Investigates i llegal n arcotics a ctivity w ith e mphasis o n t raffickers; v ice a nd p rostitution; a nd s pecialized investigations as determined by the Department.

Records/Information Unit – 10131
Responsible for the electronic and manual processing, storing, and reporting of all crime and arrest reports, citation processing, and ancillary report processing to meet the Department of Justice crime statistics reporting mandates.

Crime Scene Investigations/Photos – 10132
Provides i nvestigative s upport f or t he c ollection, p rocessing a nd p reservation o f e vidence a t c rime s cenes; laboratory and photographic support for evidentiary and non-evidentiary requests.

Youth Crime Intervention – 10135
Provides s ervices t o l ocal s chools; c riminal s treet g ang s uppression a nd i nvestigation; a nd c oordinates o utreach intervention opportunities through the Gang Investigations Unit.

Property and Evidence – 10136
Maintains records; stores, preserves, and disposes of property and evidence consistent with legal guidelines.

Telecommunications Operations – 51010
Provides a centralized, computer-aided Communications Dispatch Center that receives citizen requests for emergency fire, paramedics and police services; provides medical pre-arrival instructions using Emergency Medical D ispatch ( EMD) p rocedures; p rovides a m eans o f c ontact f or e mergency P ublic W orks, W ater D istrict service and Orange Coast College Security outside of normal business hours.

Technical Support and Maintenance – 51020
Provides operational integrity of the City’s telecommunications infrastructure for data and voice; provides systems and e quipment i nstallations a nd e lectronics m aintenance; o versees i nter-operation o f t elephone, r adio, a udio, fi re alerting system, selected data and video assets in buildings and facilities, outside plant, and in automotive/mobile and p ortable c onfigurations.

Emergency Services – 51040
Serves a s t he offi ce r esponsible f or t he C ity’s e mergency a nd d isaster p reparedness; a cts a s l iaison t o o ther government agencies, private sector partners, schools, special districts, non-government, and volunteer organizations t o e nsure c oordinated e fforts, a nd t imely r esponse t o e mergencies a nd d isasters; c onducts disaster p lanning m eetings, t rainings, a nd ex ercises; m aintains d isaster s upplies; t o e nsure t he C ity’s E mergency Operations C enter ( EOC) i s m aintained i n a c onstant s tate o f r eadiness; s upports C ity P ublic I nformation s taff in t he e stablishment o f a j oint i nformation c enter ( JIC) w hen n eeded; r esponsible f or m aintenance o f t he, C ity’s Emergency O perations P lan; a nd e nsures c ompliance w ith t he N ational I ncident M anagement S ystem ( NIMS) a nd California standardized Emergency management system (SEMS).

Proposed Budget for
Fiscal Year 2026-2027
146 City of Costa Mesa, California 194
Fiscal Year 2025-2026 Accomplishments
■ Appointed a new Chief of Police and completed a series of key promotions, including Deputy Chief, Captain, two Lieutenants, multiple Sergeants, a Records Supervisor, a Park Ranger, and an Executive Assistant. ■ Filled all police officer vacancies through strategic recruitment, hiring, and onboarding processes. ■ Added a Custody Officer position to expand jail coverage. ■ Seventeen officers and one reserve officer successfully completed Field Training. ■ Achieved full compliance with all POST, STC, and State legislative training mandates. ■ Expanded Records Bureau staffing with the hiring of two Records Technicians. ■ Modernized the Records Bureau training program by transitioning to LEFTA and increasing education -b ased training opportunities on NIBRS, public records releases, and report review. ■ Achieved a 100% homicide closure rate.
■ Seized s ignificant q uantities o f i llegal n arcotics, i ncluding o ver 6 0 l bs. o f m ethamphetamine, 7 0,000 f entanyl pills, eight lbs. of powder fentanyl, and 8,000 oxycodone pills. ■ Six officers were recognized by MADD for DUI enforcement, including one Century Award recipient. ■ Completed more than 1,900 discovery requests.
■ Added an additional elementary school to the GRIP program. ■ Secured m ultiple g rants, i ncluding C annabis T raffic S afety G rant, 2 024 O peration S tonegarden G rant f or narcotics i nterdiction, F Y 2 025–2026 O TS S elective T raffic E nforcement P rogram G rant, C alifornia O TS T RIP Grant to implement electronic crash reporting and enhance RMS integration ■ Launched the cloud -b ased P2C online reporting portal, expanding the list of reportable incidents. ■ Records Bureau maintained full DOJ compliance under the FY 2023–2025 audit cycle, including CLETS Security, CORI, and CJIS/NCIC audits.
■ Maintained DOJ NIBRS certification with an error rate below 3% on all monthly submissions. ■ Collaborated with Field Operations to implement electronic submission of Missing Persons reports from the Rite of Passage Group Home.
■ Completed interior painting, flooring, and wall décor upgrades in the Police Department main building. ■ Completed the expansion of the Police Department back parking lot. ■ Relocated the Property & Evidence warehouse to Airway and successfully transferred 1,300 evidence items. ■ Conducted the first-e ver onsite narcotics destruction, eliminating more than 2,000 lbs. of narcotics. ■ Added a part-t ime cadet to support the Property & Evidence Unit. ■ CMPD social media presence grew by 9,131 followers, including expansion to the Threads platform. ■ Hosted major community events such as Coffee with a Cop (three events), National Night Out, Spring Barkbash, Tip-A-C op, Vaccine Clinic, Santa’s Sleigh, Shop with a Cop, and the annual Torch Run. ■ Participated in citywide events including NMUSD Lunch & Learns, Back2School Fresh, Costa Mesa’s Hispanic Heritage event, and Bike Safety presentations.
■ Supported 45 active Neighborhood Watch groups.
■ Graduated 23 residents from the Citizens’ Academy and 19 students from the Teen Academy. ■ Delivered six safety presentations at the Senior Center, 55+ communities, and local churches. ■ Created a Business Watch manual and webpage to support the South Coast Metro Alliance and local businesses. ■ Developed and conducted the City’s first Cyber Tabletop Exercise with participation from all City departments, local jurisdictions, OCIAC, and the FBI.
■ Developed and published a bilingual Community Preparedness Guide (English and Spanish). ■ Created a new Office of Emergency Management webpage to share preparedness resources. ■ As part of the OCEMO EOC Academy Working Group, received the OCEMO Helping Hands Award for 2025.

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Fiscal Year 2026-2027 Goals
■ Strengthen recruitment and retention strategies for Public Safety Dispatch personnel to ensure adequate staffing and operational continuity.
■ Continue d eveloping t he U nmanned Ae rial S ystem ( UAS) T eam b y e xpanding s taffing a nd e quipment t o s upport future integration into a Drone as a First Responder (DFR) program and the Real Time Information Center (RTIC). ■ Prioritize the replacement and repair of public safety vehicles and apparatus to maintain operational readiness. ■ Begin construction and facility improvements for the Public Safety Communications Center. ■ Complete temporary upgrades at the Westside Substation to enhance the work environment for assigned personnel.
■ Implement improvements at the new Property & Evidence Warehouse on Airway Avenue. ■ C ontinue u pgrading a nd m odernizing p olice f acilities t o s upport s taffing n eeds, i mprove w orkflow e fficiency, and enhance service delivery.
■ Complete Year 5 initiatives of the IT Strategic Plan, including funding and progress toward the CAD/RMS Public Safety System Replacement.
■ Develop t he l ocation, s taffing m odel, a nd e quipment r equirements n ecessary t o e stablish a R eal T ime Information Center (RTIC) to support data -d riven policing and situational awareness. ■ Implement proactive communication programs designed to strengthen public engagement, transparency, and community trust.

Proposed Budget for
Fiscal Year 2026-2027
148 City of Costa Mesa, California 196
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Recruit and retain Public Safety Dispatch Personnel ; TRUE
;
TRUE
;
TRUE
2 Prioritize replacement/repair of public safety vehicles and apparatus ;
TRUE
;
TRUE
;
TRUE
3 Public Safety Communications Center – start construction and facility improvements
;
TRUE
;
TRUE
;
TRUE
4 Complete Year 5 programs for the IT Strategic Plan, which includes funding for the CAD/RMS Public Safety System
Replacement
;
TRUE
;
TRUE
;
TRUE
5 Westside Substation – Complete temporary improvements to improve work environment for the personnel
;
TRUE
;
TRUE
;
TRUE
6 Make improvements to the new Property and Evidence
Warehouse on Airway Ave.
;
TRUE
;
TRUE
;
TRUE
7 Implement proactive communication programs for public engagement
;
TRUE
;
TRUE
8 Continue to upgrade and improve police facility to
accommodate staffing levels and improve efficiencies ;
TRUE
;
TRUE
;
TRUE
Development location, staffing, and equipment necessary to operate a Real Time Information Center (RTIC) ;
TRUE
;
TRUE
;
TRUE

Continue to develop the Unmanned Aerial System (UAS)
Team with staffing and equipment in order to support the possible development of a Drone as a First Responder
(DFR) program which integrates with the RTIC
;
TRUE
;
TRUE
;
TRUE

Goals and Objectives
The goals and objectives of the Police Department were developed in alignment with the City Council’s priorities. 149City of Costa Mesa, California
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Performance Measures/Workload Indicators:

Workload Indicators
CY 2023 CY 2024 CY 2025 CY 2026
Actual Actual Actual Estimated

REQUESTS FOR SERVICE
Telephone Calls Received by Dispatch (Emergency & Non-
Emergency) 183,668 169,332 163,192 157,275
Calls for Service (Require Personnel at the Scene) 101,488 98,360 81,202 67,037 911 Emergency/Public Safety Calls Received 46,964 43,956 41,406 39,004 Non-Emergency Calls Responded (Require Personnel at the Scene) 100,291 94,801 80,418 68,217
Animal Control – Calls for Service 3,137 3,780 3,037 3,187 Animal Control – Impounds 700 546 856 670
Property & Evidence – Total Items Booked 10,553 9,068 9,368 10,322

REQUIRED CRIME REPORTING
Part 1 C rimes: Crimes Against P ersons 3,632 NA N/A N/A Part 2 C rimes: Property C rimes 6,231 NA N/A N/A
Group A Offenses: Crimes A gainst Persons, Property, and Society 1,462 7,869 7,040 7,455
Group B O ffenses: All other offenses ( arrests o nly) 173 1,204 1,524 1,364 Reports Taken and Processed 18,449 16,709 17,506 18,294 Arrests (Felony and Misdemeanor) 5,864 5,143 6,040 5,991 Citations Issued 8,462 9,698 11,808 9,900
Adult Bookings 4,511 3,985 4,500 4,511
Injury Traffic Collisions 760 547 523 500

CASELOAD DISTRIBUTION
Assigned Hit-and-Run Cases 431 456 579 477
Assigned Robbery Cases 166 87 79 116
Assigned Burglary Cases 1,073 701 571 465
Assigned Juvenile Cases 359 496 465 396
Assigned Economic/Identity Theft Cases 474 391 336 376

COMMUNITY OUTREACH
Community Outreach and Engagement Events 71 63 53 59

Note: The P olice D epartment’s p erformance m easures a nd w orkload indicators are presented on a calendar year basis.

Note: In N ovember 2023 w e m ade t he s witch from UCR (Part 1 a nd 2 C rimes) t o N IBRS Federal Reporting Standards (Group A & B Offenses)

Performance Measures

Actual Actual Actual Estimated
2023 2024 2025 2026
911 Calls Answered within 10 Seconds 99% 99% 99% 99%
Emergency Calls Dispatched within 5 minutes 96% 97% 97% 97% Non-Emergency Calls Responded within 30 minutes 87% 85% 88% 87%

Customer Service Goal
Goal 2024 2025 2026
Response time – 5 minutes or less – Emergency Calls
Dispatched 90% 96% 94% 94%
Proposed Budget for
Fiscal Year 2026-2027
150 City of Costa Mesa, California 198
Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he P olice D epartment i s $ 70.9 m illion, a n i ncrease o f $ 7,386,482 o r 1 1.6 percent, c ompared t o t he a dopted b udget f or F iscal Y ear 2 025-26. T he a ttrition f actor o f $ 3.7 m illion w as recalculated and transferred to Non-Departmental budget beginning in Fiscal Year 2026-27. The Department has reduced p ersonnel b y o ne P ark R anger ( 1 F TE). T he N arcotics F orfeiture F und h as a b udget o f $ 300,000 a vailable to support essential equipment purchases.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

POLICE BY FUNDING SOURCE

General Fund - 101 $ 62,005,909 $ 6 6,702,742 $ 62,820,469 $ 69,922,841 Disaster Fund - 150 - 1 ,926 - -
Supp. Law Enforcement COP Fund - 213 359,983 376,562 3 51,659 3 34,056 Narcotics Forfeiture Fund - 217 2 54,705 - - 300,000 Office o f T raffic S afety - 2 20 1 97,735 3 01,306 - - Grants - Federal - 230 7 7,523 5 6,076 - -
Grants - State - 231 1,079,488 758,592 351,485 353,198 Total Police Department $ 6 3,975,342 $ 6 8,197,203 $ 6 3,523,613 $ 7 0,910,095 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

POLICE DEPARTMENT BY PROGRAM
ADMINISTRATION - 15100

Administration - 50001
Salaries a nd B enefits $ 3 ,102,783 $ 3 ,192,388 $ 3 ,303,168 $ 3 ,082,426 Maintenance and Operations 2 ,411,098 2 ,386,878 2,384,968 2 ,375,533 Fixed Assets 1 22,217 10 4,325 105,850 10 5,850 Subtotal Administration $ 5,636,097 $ 5 ,683,590 $ 5,793,986 $ 5,563,809 -
Training - 10133
Salaries a nd B enefits $ 7 91,765 $ 8 41,213 $ 8 23,933 $ 8 78,178 Maintenance and Operations 2 96,811 368,415 3 18,580 2 76,580 Fixed Assets - 5,198 1,500 1 ,500
Subtotal Training $ 1,088,576 $ 1,214,826 $ 1,144,013 $ 1 ,156,258

BSCC Local Assistance Fund - 71100 783,496
Salaries a nd B enefits $ 8 5,794 $ 2 44,079 $ - $ - Maintenance and Operations 24,770 6 9,930 - - Fixed Assets 310,466 4 8,457 - -
Subtotal BSCC Local Assistance $ 421,030 $ 362,466 $ - $ -

POLICE FIELD OPERATIONS - 15300

Administration - 50001
Salaries a nd B enefits $ 4 5,811 $ - $ - $ -

Field Area Policing - 10111
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Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Salaries a nd B enefits $ 26 ,373,890 $ 2 7,962,618 $ 2 2,781,297 $ 2 8,503,847 Maintenance and Operations 1 ,160,905 961,097 1 ,011,549 1,032,749 Fixed Assets 182,108 3 88 15,400 5 ,400
Subtotal Field Area Policing $ 27,716,904 $ 28,924,102 $ 23,808,246 $ 29,541,996

Traffic Enforcement - 10113
Salaries a nd B enefits $ 4 ,461,128 $ 4 ,648,792 $ 3 ,954,676 $ 4 ,893,066 Maintenance and Operations 4 58,394 4 74,416 6 03,725 6 02,225 Fixed Assets 2 1,836 14 ,528 2 0,000 1 5,000
Subtotal Traffic Enforcement $ 4,941,358 $ 5 ,137,737 $ 4,578,401 $ 5,510,291

Contract and Special Events - 10114
Salaries a nd B enefits $ 6 21,594 $ 67 2,066 $ 5 70,611 $ 5 84,989 Subtotal Contract and Special Events $ 621,594 $ 672,066 $ 5 70,611 $ 584,989

Jail - 10137
Salaries a nd B enefits $ 1 ,564,041 $ 1 ,782,907 $ 1 , 827, 395 $ 2 ,060,619 Maintenance and Operations $ 6 0,088 $ 7 4,267 $ 9 3,600 $ 4 6,350 Fixed Assets 17,563 2 4 1 ,600 1 ,600
Subtotal Jail $ 1,641,692 $ 1,857,198 $ 1,922,595 $ 2,108,569

Animal Control - 10139
Salaries a nd B enefits $ 47 5,647 $ 7 99,073 $ 8 54,176 $ 8 49,446 Maintenance and Operations 3 3,951 5 68,121 5 79,425 6 27,425 Subtotal Animal Control $ 509,597 $ 1,367,194 $ 1,433,601 $ 1,476,871 * FY 24/25 Animal Services Funds Transferred in from 15000 program 40250

AB 109 Post Release Comm. Sup. - 71019
Salaries a nd B enefits $ 1 8,727 $ 10 ,226 $ 2 5,000 $ 2 5,000 Maintenance and Operations 9 7,039 78,553 8 ,000 8,000 Fixed Assets - - 41,320 4 1,320
Subtotal AB 109 Post Release Comm. Sup. $ 115,766 $ 88,779 $ 74,320 $ 7 4,320

2023 STEP Grant - 71034 28,386
Salaries a nd B enefits $ 2 3,415 $ - $ - $ - Maintenance and Operations 4 ,971 - - -
Subtotal 2023 Step Grant $ 28,386 $ - $ - $ -

POLICE SUPPORT SERVICES - 15400

Administration - 50001
Salaries a nd B enefits $ 6 32,646 $ 6 49,680 $ 7 06,321 $ 95 5,525 Maintenance and Operations 285,277 282,331 3 31,768 2 62,568 Fixed Assets 3 2,056 1 6,051 26,041 1 ,041
Proposed Budget for
Fiscal Year 2026-2027
152 City of Costa Mesa, California 200
Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Subtotal Administration $ 949,978 $ 9 48,062 $ 1,064,130 $ 1,219,134

Helicopter Patrol - 10112
Maintenance and Operations $ 26 4,382 $ 4 3,456 $ 3 00,000 $ 5 0,000 Fixed Assets - 10 1,780 - -
Subtotal Helicopter Patrol $ 264,382 $ 145,236 $ 300,000 $ 5 0,000

Crime Investigation - 10120
Salaries a nd B enefits $ 4 ,888,000 $ 5 , 867,5 36 $ 8 ,042,346 $ 7 ,208,278 Maintenance and Operations 122,973 136,816 12 6,185 126,185 Fixed Assets 5 ,840 6 ,534 5,500 -
Subtotal Crime Investigation $ 5,016,812 $ 6,010,886 $ 8,174,031 $ 7,334,463

2021 Justice Assistance Grant - 70916
Maintenance and Operations $ 5 ,638 $ - $ - $ - Subtotal 2019 Justice Assistance Grant $ 5,638 $ - $ - $ -

Orange County Auto Theft Task Force - 71050 1,007,626
Salaries a nd B enefits $ 3 01,769 $ 14 9,814 $ 2 7 7,165 $ 2 78,878 Subtotal Orange County Auto Theft Task Force -
71050
$ 301,769 $ 149,814 $ 277,165 $ 2 78,878

Special Investigation Unit - 10127
Salaries a nd B enefits $ 1 ,869,152 $ 1 ,797, 807 $ 1 ,722,814 $ 1 ,781,379 Maintenance and Operations 122,857 120,819 122,000 1 12,000 Fixed Assets 258,643 81 3,500 3 00,000
Subtotal Special Investigation Unit $ 2,250,653 $ 1,918,707 $ 1,848,314 $ 2,193,379

Records/Information System - 10131
Salaries a nd B enefits $ 2, 494,847 $ 2 , 817, 25 4 $ 2 ,891,819 $ 3 ,068,294 Maintenance and Operations 96,208 8 9,561 1 25,975 9 4,475 Fixed Assets 1 8,099 1 6,194 1 6,570 16,570
Subtotal Records/Information System $ 2,609,154 $ 2 ,923,009 $ 3,034,364 $ 3,179,339

POLICE SUPPORT SERVICES - 15400 (Continued)
Crime Scene Investigation/Photos - 10132
Salaries a nd B enefits $ 8 31,242 $ 8 11,4 82 $ 9 13,151 $ 1 ,011,753 Maintenance and Operations 2 3,176 1 8,465 3 2,990 29,990 Fixed Assets 2,420 1,192 3,000 3 ,000
Subtotal Crime Scene Investigation/Photos $ 856,838 $ 831,139 $ 949,141 $ 1,044,743

Youth Crime Intervention - 10135
Salaries a nd B enefits $ 2, 184,659 $ 2 ,577,072 $ 2 ,328,727 $ 2 ,450,443 Maintenance and Operations 33,264 2 4,700 26 ,850 26,850 Fixed Assets 2,170 - 1 ,150 1,150
Subtotal Youth Crime Intervention $ 2 ,220,092 $ 2,601,772 $ 2,356,727 $ 2,478,443

153City of Costa Mesa, California
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Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Property and Evidence - 10136
Salaries a nd B enefits $ 5 33,473 $ 6 74,890 $ 6 80,996 $ 7 33,420 Maintenance and Operations 238,455 336,022 1 29,974 1 21,523 Fixed Assets 6 ,103 - - -
Subtotal Property and Evidence $ 778,031 $ 1,010,912 $ 810,970 $ 854,943

Operations - 51010
Salaries a nd B enefits $ 4 ,128,985 $ 4 ,203,029 $ 4 ,137, 36 3 $ 4 ,579,936 Maintenance and Operations 264,887 2 08,880 2 56,744 256,815 Fixed Assets 6 ,965 4,612 3,785 2,585
Subtotal Operations $ 4 ,400,837 $ 4,416,521 $ 4,397,892 $ 4,839,336 Technical Support/Maintenance - 51020
Salaries a nd B enefits $ 3 11,698 $ 3 25,800 $ 3 31,550 $ 3 50,130 Maintenance and Operations 2 54,457 2 28,378 1 60,417 160,417 Fixed Assets - 7 71,075 732,000 727 ,000
Subtotal Technical Support/Maintenance $ 566,155 $ 1,325,253 $ 1,223,967 $ 1 ,237,547

Emergency Services - 51040
Salaries a nd B enefits $ 1 37, 291 $ 1 05,749 $ 1 23,814 $ 13 5,257 Maintenance and Operations 4 7,180 2 6,414 4 8,515 31,530 Fixed Assets 3 ,988 4,610 1 6,000 16,000
Subtotal Emergency Services $ 188,459 $ 136,773 $ 188,329 $ 182,787 EMPG - 71300
Maintenance and Operations - 2 ,376 - -
Fixed Assets $ 2 4,574 $ 6 ,540 $ - $ -
Subtotal EMPG $ 24,574 $ 8 ,916 $ - $ -

Youth Investment Grant - 71350
Maintenance and Operations 4 5,698 - - -
Subtotal Youth Investment Grant $ 45,698 $ - $ - $ -

Salaries a nd B enefits $ 5 6,060,741 $ 6 0,479,457 $ 5 6,296,322 $ 6 3,430,864 Maintenance and Operations 6,825,972 6 ,616,157 6 ,234,075 6,241,215 Fixed Assets 1 ,088,630 1,101,589 993,216 1 ,238,016

Total Police Department $ 63,975,342 $ 68,197,203 $ 63,523,613 $ 70,910,095 Proposed Budget for
Fiscal Year 2026-2027
154 City of Costa Mesa, California 202
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
POLICE DEPARTMENT BY ACCOUNT: ALL FUNDS
Salaries and Benefits
Salaries and Wages $ - $ - $ ( 3,671,868) $ - Regular Salaries - Sworn 1 6,148,090 16,191,556 1 8,270,414 1 9,207,826 Regular Salaries - Non-Sworn 7,432,277 9,085,959 8 ,911,252 9,542,104 Regular Salaries - Part-Time 1,480,715 1,094,205 1,186,979 1 ,186,979 Overtime 3 ,917,658 4 ,686,333 1,810,612 1,932,612 Accrual Payoff - Excess Max. 4 51,807 437,328 143,828 143,828 Vacation/Comp. Time Cash Out 2 11,156 263,175 1 23,280 123,280 Holiday Allowance 4 51,045 454,971 441,074 440,658 Separation Pay-Off 138,060 2 00,593 7 2,956 72,956 Other Compensation 2, 722,912 2,845,374 2,520,203 2,839,657 Cafeteria Plan 5 ,135,003 5,279,434 5,715,060 6 ,247,549 Medicare 500,445 539,822 438,190 558,606
Retirement 1 7,187,580 1 8,790,422 1 9,598,891 2 0,404,951 Longevity 260,034 588,519 716,425 715,659
Executive Prof Development 23,960 21,766 19,026 14 ,200 Subtotal Salaries & Benefits $ 56,060,741 $ 60,479,457 $ 56,296,322 $ 63,430,864

Maintenance and Operations
Stationery a nd O ffice $ 7 6,857 $ 8 1,034 $ 8 6,700 $ 7 5,200 Multi-Media, Promos, Subscrpt. 97,550 1 13,341 92,550 8 9,550 Small Tools and Equipment 2 57,281 85,235 6 2,105 39,105 Uniforms and Clothing 252,997 291,690 176,950 175,450 Safety and Health 229,610 190,426 1 94,592 154,401 Maintenance and Construction 23 ,068 27,270 14,250 14 ,250 Electricity - Buildings & Fac. 9 37 1 ,258 1,200 1 ,200 Water - Domestic 780 1,237 1 ,000 1 ,000
Waste Disposal 2 ,060 2 ,505 2 ,162 2,402
Janitorial and Housekeeping 1 69,358 1 82,326 174,413 174,413 Telephone/Radio/Communications 4 34,526 3 62,378 338,945 338,945 Business Meetings 16,822 3 9,409 1 2,800 1 8,165 Mileage Reimbursement 92 10 3 00 1 ,300
Dues and Memberships 4 8,420 54,961 48,585 4 8,585 Professional Development 2 76,817 310,939 2 19,152 189,152 Buildings and Structures 63,088 83,826 74,413 3 4,663 Automotive Equipment 2 ,159 7, 103 - -
Office E quipment 17,4 41 21,902 24,581 1 8,581 Other Equipment 7, 326 8 ,741 13,870 13,870 Consulting 788,952 7 29,893 6 60,039 863,515 Legal 1,084 2 ,247 15,000 5 ,000
Financial & Information Svcs. 6 6 62 - -
Medical and Health Inspection 7 8,512 96,046 1 20,500 1 20,500 Public Safety 419,027 436,787 566,320 550,320 Principal Payments 14 4,297 1 52,052 - -
Interest Payments 14 ,835 11,856 - -

155City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
POLICE DEPARTMENT BY ACCOUNT: ALL FUNDS

Maintenance and Operations (Continued)
External Rent 1 18,672 1 06,919 1 25,500 103,500 Internal Rent Central Services 2,547 4 ,467 5,303 5 ,303 Internal Rent Postage 16,556 14,748 8 ,031 8 ,031 Internal Rent - Maintenance 384,800 384,800 3 84,800 3 84,800 Internal Rent - Repl Cost 400,000 400,000 4 00,000 4 00,000 Internal Rent - Fuel 259,596 1 90,200 1 90,200 190,200 Internal Rent Genl Liability 2 75,496 2 75,496 275,496 275,496 Internal Rent Workers’ Comp 1,914,655 1,914,655 1,914,655 1 ,914,655 Internal Rent Unemployment 29,663 29,663 2 9,663 2 9,663 Other Costs 85 73 - -
Subtotal Maintenance & Operations $ 6,825,972 $ 6,616,157 $ 6 ,234,075 $ 6,241,215

Fixed Assets
Automotive Equipment 33,187 - - -
Other Equipment 1 ,055,443 1 ,100,958 9 93,216 1 ,238,016 Subtotal Fixed Assets $ 1,088,630 $ 1,100,958 $ 993,216 $ 1,238,016

Transfers Out
Transfers Out - 6 31 - -
Subtotal Transfers Out - 6 31 - -

Total Police Department $ 63,975,342 $ 68,197,203 $ 63,523,613 $ 70,910,095 Proposed Budget for
Fiscal Year 2026-2027
156 City of Costa Mesa, California 204
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
POLICE DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY
Salaries and Benefits
Salaries and Wages $ - $ - $ ( 3,671,868) $ - Regular Salaries - Sworn 1 5,884,388 1 6,013,566 1 7,996,262 1 8,956,222 Regular Salaries - Non-Sworn 7,432,086 9 ,084,997 8 ,911,252 9,542,104 Regular Salaries - Part-Time 1,476,483 1 ,089,843 1,186,979 1 ,186,979 Overtime 3,603,945 4 ,079,255 1,764,436 1,886,436 Accrual Payoff - Excess Max. 439,644 429,820 138,828 138,828 Vacation/Comp. Time Cash Out 2 05,043 263,175 1 23,280 123,280 Holiday Allowance 4 50,134 444,013 429,309 429,309 Separation Pay-Off 138,060 184,047 7 2,956 72,956 Other Compensation 2,684,966 2,820,254 2,490,036 2,815,303 Cafeteria Plan 5 ,085,479 5,247,989 5,664,204 6 ,189,493 Medicare 490,350 529,768 4 33,267 5 53,923
Retirement 1 6,978,911 1 8,591,663 1 9,375,470 20,174,836 Longevity 260,034 583,804 7 09,061 709,062
Executive Prof Development 23,960 21,766 19,026 14 ,200 Subtotal Salaries & Benefits $ 5 5,153,482 $ 59,383,960 $ 55,642,498 $ 62,792,930

Maintenance and Operations
Stationery a nd O ffice $ 7 6,857 $ 8 1,034 $ 8 6,700 $ 7 5,200 Multi-Media, Promos, Subscrpt. 97,550 1 03,151 92,550 8 9,550 Small Tools and Equipment 2 07,329 68,621 6 2,105 39,105 Uniforms and Clothing 252,997 264,177 176,950 175,450 Safety and Health 153,223 171,480 1 94,592 154,401 Maintenance and Construction 23 ,068 27,270 14,250 14 ,250 Electricity - Buildings & Fac. 9 37 1 ,258 1,200 1 ,200 Water - Domestic 780 1,237 1 ,000 1 ,000
Waste Disposal 2 ,060 2 ,505 2 ,162 2,402
Janitorial and Housekeeping 1 69,358 1 82,326 174,413 174,413 Telephone/Radio/Communications 4 34,526 3 62,378 338,945 338,945 Business Meetings 15,398 38,122 1 2,800 1 8,165 Mileage Reimbursement 92 10 3 00 1 ,300
Dues and Memberships 4 8,420 54,961 48,585 4 8,585 Professional Development 2 36,983 210,144 2 19,152 189,152 Buildings and Structures 63,088 83,826 74,413 3 4,663 Automotive Equipment 2 ,159 3 ,603 - -
Office E quipment 17,4 41 21,902 24,581 1 8,581 Other Equipment 7, 326 8 ,741 13,870 13,870 Consulting 686,351 607,183 65 2,039 855,515 Legal 1,084 2 ,247 15,000 5 ,000
Financial & Information Svcs. 6 6 62 - -
Medical and Health Inspection 7 8,512 96,046 1 20,500 1 20,500 Public Safety 419,027 436,787 566,320 550,320 Principal Payments 14 4,297 1 52,052 - -
Interest Payments 14 ,835 11,856 - -
External Rent 1 18,672 1 06,919 1 25,500 103,500 Internal Rent Central Services 2,547 4 ,467 5,303 5 ,303 157City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
POLICE DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY
Internal Rent Postage 16,556 14,748 8 ,031 8 ,031 Maintenance and Operations (Continued)
Internal Rent - Maintenance 384,800 384,800 3 84,800 3 84,800 Internal Rent - Repl Cost 400,000 400,000 4 00,000 4 00,000 Internal Rent - Fuel 259,596 1 90,200 1 90,200 190,200 Internal Rent Genl Liability 2 75,496 2 75,496 275,496 275,496 Internal Rent Workers’ Comp 1,886,963 1,872,833 1,914,655 1 ,914,655 Internal Rent Unemployment 2 9,240 29,075 2 9,663 2 9,663 Other Costs 85 73 - -
Subtotal Maintenance & Operations $ 6,527,658 $ 6,272,190 $ 6,226,075 $ 6,233,215

Fixed Assets
Automotive Equipment $ 3 3,187 $ - $ - $ -
Other Equipment 2 91,581 1 ,046,592 9 51,896 896,696 Subtotal Fixed Assets $ 324,768 $ 1,046,592 $ 951,896 $ 896,696

Transfers Out

Total Police Department $ 62,005,909 $ 66,702,742 $ 62,820,469 $ 69,922,841 Proposed Budget for
Fiscal Year 2026-2027
158 City of Costa Mesa, California 206
Fire and RescueDepartment
Fire and Rescue
Department
207
Fire and Rescue
Fire Administration

1.0 FTE - Fire Chief

1.0 FTE - Executive Assistant

1.0 FTE - Sr. Management Analyst

1.0 FTE- Fire Captain/Admin/Training

1.0 FTE- Fire Captain/Admin/EMS

1.0 FTE- Battalion Chief

0.5 FTE - Emergency Services Manager

0.5 FTE- Telecommunications Manager

1.25 FTE- Part-Time
Community Risk Reduction

2.0 FTE - Assistant Fire Marshal

3.0 FTE - Fire Protection Specialist

1.0 FTE - Code Enforcement Oﬃcer

1.0 FTE - Administrative Assistant

1.0 FTE Part-Time
Fire Operations

3.0 FTE - Battalion Chief

18.0 FTE - Fire Captain

18.0 FTE - Fire Engineer

42.0 FTE - Fireﬁghter
Community Risk Reduction

1.0 FTE - Assistant Fire Chief (Non-Sworn)
Fire Marshal
Fire Operations

1.0 FTE - Assistant Fire Chief (Sworn)
Operations
Proposed Budget for
Fiscal Year 2026-2027
160 City of Costa Mesa, California 208
The City of Costa Mesa Fire and Rescue (CMFR) budget is strategically developed in alignment with the City Council’s strategic goals and priorities. It is also integrated into the CMFR Community Driven Strategic Plan (2022- 2027), and based on the City of Costa Mesa’s priorities and objectives.

The Fire and Rescue Department is a public safety function that protects life, property and the environment through its mitigation, prevention, preparedness, response, and recovery services.

The D epartment i s b udgeted f or 9 7 f ull-time s taff m embers: 8 6 s worn p ositions a nd 1 1 n on-sworn p ositions.

Part-time s taffing c onsists o f 2 .25 f ull-time e quivalents t o s erve w ithin t he 3 d ivisions. T he 3 d ivisions a re F ire Administration, Fire /Rescue Operations /Emergency Medical Services, and Community Risk Reduction The F ire O perations D ivision p rovides r esponse s ervices a nd s taffs 6 fi re s tations, 24 /7. T he C ommunity R isk Reduction D ivision p rovides l ife a nd fi re s afety p lanning, i nspection, p reparedness, a nd o verall c ommunity r isk reduction. Both divisions are supported by the Fire Administration division.

CMFR’s budget is aligned with CMFR’s Community Driven Strategic Plan (2022-2027), in direct alignment with the City Council’s Strategic Goals and Objectives.

CMFR’s primary objectives will continue to be focused within the following strategic initiatives:
● Technology
● Staffing
● Infrastructure
● Training
● Communication
● Accreditation
Fire Administration – 16100
Administration – 50001
The Administration Division is responsible for the delivery of all staff and support services, working towards the m ost e ffective a nd e fficient o perations o f t he d epartment. A mong t hese s ervices, t he d ivision p rovides direction f or s trategic, op erational, a nd e mergency p lanning; e stablishes de partment p olicies a nd p rocedures; coordinates internal functions of all divisions, programs, and external functions with other City departments and c ommunity or ganizations; de velops a nd m anages t he b udget; p rovides o versight a nd c oordination f or department t raining a nd e ducation; r epresents t he de partment on c ountywide fi re/rescue/emergency m edical services c ommittees; c oordinates a ll o rdering a nd p urchasing;coordinates c ontracts f or s ervices; m anages t he departments c ommunication a nd s ocial m edia e fforts; m anages t he d epartment’s h uman r esources; m anages the department’s records and reports; performs additional functions and duties as needed by the City Manager.

Fire Operations — 16200
Fire/Rescue Operations – 10210
The Operations Division manages Fire, Rescue and Emergency Medical Services and maintains constant readiness to answer calls for assistance for the citizens and visitors of the community. The Division is also tasked with rapid response t o l ife, h ealth, fi re, r escue, a nd e nvironmental e mergencies, a s w ell a s t he p rotection o f p roperty, fi re cause a nd o rigin d etermination, a nd l ife s afety i nspections a nd e ducation. I n a ddition, t he fi re c ompanies a re involved i n c omprehensive b uilding a nd fi re p rotection s ystems i nspections, i ncluding t he h igh-rise b uildings i n t he South Coast Metro area and South Coast Plaza.

Emergency Medical Services – 10230
The Emergency Medical Services Division manages, supervises, and provides the functions required to support these s ervices in cluding; e mergency p lanning, c ommunications, t raining an d e ducation, e quipment m aintenance and repair, supplies, records, and quality control. Pre-hospital advanced life support (ALS) and basic life support (BLS) is provided by a combination of Paramedic Engine Companies, Truck Companies and Rescue Ambulances, including an innovative ambulance transportation program

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Community Risk Reduction — 16300
Community Risk Reduction – 10220
The C ommunity R isk R eduction D ivision d evelops a nd e nforces l ocal fi re, l ife s afety, p roperty, a nd e nvironmental p r o t e c t i o n s t a n d a r d s ; e n f o r c e s s t a t e a d o p t e d fi r e a n d l i f e s a f e t y c o d e s ; r e v i e w s b u i l d i n g c o n s t r u c t i o n p l a n s ; conducts b uilding c onstruction a nd b usiness i nspections; i nvestigates c itizen c omplaints; s erves on c ity-wide committees r elated t o d evelopment r eview, g roup h omes, h omeless o utreach, a nd m arijuana b usinesses; p rovides training to department personnel in regard to fire and life safety codes; assists professional trades with technical fire c ode r equirements a nd de partment c ommunity e ducation e fforts. D evelops, p rovides, a nd c oordinates community preparedness activities including, volunteer, outreach, education, training, and response programs including; B usiness P reparedness A cademies a nd C ommunity E mergency R esponse T eam A cademies; a nd embracing an overall strategy of community risk reduction.

Proposed Budget for
Fiscal Year 2026-2027
162 City of Costa Mesa, California 210
Fiscal Year 2025-2026 Accomplishments
■ Provided proactive communication internally and externally to improve service quality and community outreach. ■ Initiated the next phase of Center of Public Safety Excellence (CPSE) / Commission on Fire Accreditation International (CFAI) Accreditation Project.
■ Continued to move our Strategic Plan forward, inclusive of quarterly reports, in written and digital form, to be shared internally and externally.
■ Completed phase 1 on construction of new Costa Mesa Fire & Rescue (CMFR) Regional Fire & Rescue Training Facility.
■ Completed the Fire Apparatus Engineer Promotional Testing Process. ■ Completed the Fire Captain Promotional Testing Process. ■ Completed the implementation phase of Tablet Command Project. ■ Initiated the ECC CAD (Joint CMPD/CMFR/ECC) project.
■ Continued to play a key role with regional and statewide engagement through California’s Master Mutual Aid System, Cal OES, and our three Cal OES Engines (i.e., Type 1, 3, and 6). ■ Highlighted and celebrated CMFR’s 100th Year Anniversary. ■ Continued to place a high priority on our Operations and our Community Risk Reduction efforts, inclusive of the enhancement of Emergency Medical Service (EMS) and Training programs, both from an internal, quality assurance perspective and an external, community outreach perspective. ■ The CMFR team responded to 13,254 incidents. Completed successful transfer of command for Fire Chief. ■ Successfully p romoted t hroughout i n t he r anks o f B attalion C hief, F ire C aptain, E ngineer a nd F irefighter a nd F ire Marshal.
■ Hired new Firefighters.

Fiscal Year 2026-2027 Goals
■ Continue to provide proactive communication internally and externally to improve of quality service and community outreach.
■ Complete our Standard of Coverage (SOC) project.
■ Continue to move our Strategic Plan forward, inclusive of quarterly reports, in written and digital form, to be shared internally and externally.
■ Initiate the next phase of our CPSE / CFAI Accreditation Project - Winter 2026. ■ Complete construction of the new CMFR Regional Fire & Rescue Training Facility -water reclaim system and phase 2.
■ Formally break ground on our Fire Station no. 2 new construction project. ■ Complete the entry level Firefighter recruitment Testing Process. ■ Complete the Battalion Chief Promotional Testing Process. ■ Continue t o p lace t he h ighest p riority o n o ur p eople, s pecifically r elated t o h ealth, w ellness, s afety, p rofessional development, succession planning, active leadership and paramedic school. ■ Complete the implementation of our Tablet Command Project- phase 2 Implement bilateral communication with Tablet Command.
■ Proceed to collaborate on the ECC CAD (Joint CMPD/CMFR/ECC) project. ■ Continue to move the respective ECC and EOC programs forward, in partnership with CMPD and the City Manager’s O ffice.
■ Continue to play a key role with our regional and statewide engagement through California’s Master Mutual Aid System, Cal OES, and our three Cal OES Engines (i.e., Type 1, 3, and 6). ■ Expand usage of PS Trax asset management for all apparatus related checks and inventory. ■ Expand usage of Starlink across apparatus, dispatch and EOC for resiliency and redundancy. ■ Launch the new updated CERT program.

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Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Provide proactive communication internally
and externally to improve quality of service and
community outreach.

;
TRUE
;
TRUE
;
TRUE
;
TRUE
2 Complete our Standard of Coverage (SOC)
project
;
TRUE
;
TRUE
;
TRUE
;
TRUE
3 Continue to move our Strategic Plan forward,
inclusive of quarterly reports, in written and
digital form, to be shared internally and
externally.

;
TRUE
;
TRUE
;
TRUE
;
TRUE
4 Initiate the next phase of our CPSE / CFAI
Accreditation Project.
;
TRUE
;
TRUE
;
TRUE
;
TRUE
5 Complete the construction of our new CMFR
Regional Fire & Rescue Training Facility.

;
TRUE
;
TRUE
;
TRUE
;
TRUE
6 Formally break ground on our Fire Station #2
new construction project.
;
TRUE
;
TRUE
;
TRUE
;
TRUE
7 Complete the Fire Apparatus Engineer
Promotional Testing Process.

;
TRUE
;
TRUE
8 Complete the Fire Captain Promotional Testing
Process.
;
TRUE
;
TRUE
9 Continue to place the highest priority on our
people, specifically related to health, wellness,
safety, professional development, succession
planning, and active leadership.

;
TRUE
;
TRUE
;
TRUE
10 Complete the implementation of our Tablet
Command Project.
;
TRUE
;
TRUE
;
TRUE
;
TRUE
11 Initiate the ECC CAD (Joint CMPD/CMFR/ECC)
project.

;
TRUE
;
TRUE
;
TRUE
;
TRUE
12 Continue to move the respective ECC and EOC
programs forward, in partnership with CMPD and
the City Manager’ s Office.
;
TRUE
;
TRUE
;
TRUE
;
TRUE
13 Continue to play a key role with our regional
and statewide engagement through California’s
Master Mutual Aid System, Cal OES, and our
three Cal OES Engines (i.e., Type 1, 3, and 6).

;
TRUE
;
TRUE
;
TRUE
;
TRUE
14 Highlight and celebrate CMFR’s 100th Year
Anniversary.
;
TRUE
;
TRUE
;
TRUE

Goals and Objectives
The goals and objectives of the Fire and Rescue Department were developed in alignment with the City Council’s priorities.

Proposed Budget for
Fiscal Year 2026-2027
164 City of Costa Mesa, California 212
Performance Measures/Workload Indicators:

WorkLoad Indicators

CY 2023 CY 2024 CY 2025
Actual Actual Actual

CALLS FOR SERVICE
Fire Incidents 261 253 215
EMS & Rescue 10,439 10,459 10,108
Non-Emergency/Good Intent Service Calls 433 414 1,673
False and/or Unintentional Alarms 682 695 697
Incidents involving Narcan Administration 170 124 65

PATIENT TRANSPORT TOTALS
Advanced life support transports (ALS) 3,624 3,693 3,724 Basic life support transports (BLS) 3,929 4,097 4,145

COMMUNITY RISK REDUCTION
Plan Check Reviews* 983 984 1,604
Fire Systems Plans - - 626
Architectural Plans - - 978

INSPECTIONS
Fire Prevention System Construction Permit 447 1,075 330 Sprinklers - - 193
Life Safety- Building Permits 287 205 567

ANNUAL INSPECTIONS
Fire Prevention Inspections 1,779 1,492 1,568
Fire permit inspection/issued 518 347 567

FIRE PREVENTION PROGRAM
Total Number of Hours Worked 1,040 1,040 1,040
Re-inspection for compliance within the same year 889 1,081 1,217

COMMUNITY EDUCATION PROGRAMS
Number of Participants at Hands only CPR Events 352 794 592 Number of Participants Hosted at Fire Station Tours 143 238 587 Number of Special Events Attended 15 47 60
Volunteer Hours – CERT 5,629 787 865

Note: Metrics are presented o n a c alendar y ear basis required to a lign w ith s tate a nd n ational incident r eporting guidelines. *Plan C heck Review i ncludes a ll t ypes of r eview: development r eviews, s pecial e vents, b lock p arties, p yrotechnics, annual operations, etc.

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Performance Measures
CY 2023 CY 2024 CY 2025
Actual Actual Actual
CALLS FOR SERVICE (first on-scene within 7 minutes or less from dispatch) Fire 93.10% 86.67% 86.49%
Fire - from dispatch/average Response Time 5:00 5:33 5:45 Emergency Medical Services 93.22% 92.60% 93.48%
Emergency Medical Service - from disbatch/average Response Time 4:47 4:50 4:46 Rescue (with or without injury, including all freeway response) 82.36% 83.22% 78.36% Rescue (with or without injury, including all freeway response) - from disbatch/average Response Time 5:24 5:27 5:40

COMMUNITY RISK REDUCTION
Plan Review Completed within 14 Calendar Days 96% 97% 73.46 * Plan Review Resubmittal Review Completed within 7 Calendar Days 98% 99% 71.32 * Percentage of apartments inspected in the City 100% 100% 100% Percentage of high-rises (7+ stories) inspected in the City 100% 100% 100% Percentage of education buildings (up to grade 12) inspected in the City 100% 100% 100% Note: Data f or P lan review was not available for 2 021 a nd 2 022. * P lan check t urnaround times vary by p ermit t ype. This percentage r eflects multiple permit c ategories. Metrics w ill be u pdated in 2026 to i nclude permit-type breakouts.

Customer Service Goal
Goal 2024 2025
Response time – 7 minutes or less – All Calls for Service From Dispatch 90% 90% 98.82
All Emergency Calls for Service from dispatch/average Response Time 4:59 4:56 Proposed Budget for
Fiscal Year 2026-2027
166 City of Costa Mesa, California 214
Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he F ire a nd R escue D epartment i s $ 39.4 m illion, a n i ncrease o f $ 0.5 m illion or 1.3 percent compared to the adopted budget for Fiscal Year 2025-26. The increase is primarily attributed to adjustments t o s alaries a nd b enefits a s a r esult o f l abor n egotiations. W hile t here a re i ncreases a ttributed t o adjustments t o s alaries a nd b enefits a s r esult o f l abor n egotiations, t he o perating b udget i s t emporarily b eing reduced to maintain a balanced budget under current economic conditions. Additionally, the department requests to reclassify the vacant Emergency Medical Services Coordinator to Battalion Chief. The FTE count will remain the same.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

FIRE AND RESCUE DEPARTMENT BY FUNDING SOURCE

General Fund - 101 $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 3 9,421,729 Total Fire and Rescue Department $ 35 ,159,635 $ 3 9,167,336 $ 38, 903,466 $ 39 ,421,729 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

FIRE AND RESCUE DEPARTMENT BY PROGRAM
ADMINISTRATION - 16100
Fire Administration - 50001
Salaries a nd B enefits $ 2 ,716,705 $ 1 ,971,239 $ 2 ,198,341 $ 2 , 211,953 Maintenance and Operations 1 ,075,640 1 ,049,677 1 ,040,948 1 ,019,948 Subtotal Fire Administration $ 3,792,345 $ 3,020,916 $ 3,239,289 $ 3,231,901

Operations - 51010
Salaries a nd B enefits $ - $ - $ 1 18,401 $ 1 12,469 Subtotal Operations $ - $ - $ 118,401 $ 11 2,469

FIRE OPERATIONS - 16200
Response and Control - 10210
Salaries a nd B enefits $ 2 5,592,559 $ 3 0,157,902 $ 2 9,080,998 $ 2 9,606,386 Maintenance and Operations 1,432,084 1 ,520,311 1 ,395,200 1,333,200 Fixed Assets 20,436 2 0,204 22,990 2 2,990
Subtotal Response and Control $ 27,045,079 $ 3 1,698,416 $ 30,499,188 $ 30,962,576 Emergency Medical Aid - 10230
Maintenance and Operations 3,032,299 3 ,062,057 3 ,255,700 3 ,225,700 Fixed Assets 5 ,041 6 ,175 1 0,000 10,000
Subtotal Emergency Medical Aid $ 3,037,340 $ 3,068,232 $ 3,265,700 $ 3,235,700

COMMUNITY RISK REDUCTION - 16300
Fire Prevention - 10220
Salaries a nd B enefits $ 1 ,175,785 $ 1 ,289,700 $ 1 ,587,548 $ 1 ,769,743 Maintenance and Operations 93,289 75,698 193,340 10 9,340 Subtotal Fire Prevention $ 1,269,075 $ 1 ,365,398 $ 1,780,888 $ 1, 879,083

TOTAL FIRE AND RESCUE DEPARTMENT
Salaries a nd B enefits $ 2 9,489,641 $ 3 3,418,841 $ 3 2,985,288 $ 3 3,700,551 Maintenance and Operations 5 ,644,516 5 ,722,116 5,885,188 5 ,688,188 Fixed Assets 2 5,478 26 ,379 32,990 3 2,990
Total Fire and Rescue Department $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 39,421,729 167City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FIRE AND RESCUE DEPARTMENT BY ACCOUNT: ALL FUNDS
Salaries and Benefits
Regular Salaries - Sworn $ 1 0,153,377 $ 1 1,006, 396 $ 1 1,329,338 $ 1 1,692,081 Regular Salaries - Non-Sworn 8 72,250 9 95,749 1,365,392 1,523,593 Regular Salaries - Part-Time 110,226 93,473 103,480 1 03,480 Overtime 3,466,007 5 ,330,307 2,666,125 2 ,666,125 Accrual Payoff - Excess Max. 9 1,167 90,342 3 2,600 3 2,600 Vacation/Comp. Time Cash Out 152,784 139,066 51,800 5 1,800 Holiday Allowance 437,824 5 85,824 502,869 5 02,869 Separation Pay-Off 13,611 7 2,784 41,400 4 1,400 Other Compensation 8 69,182 991,877 1 ,436,036 1 ,550,469 Cafeteria Plan 2 ,421,387 2,468,324 2 ,924,242 2,538,228 Medicare 2 45,213 2 92,706 210,366 2 47,263 Retirement 1 0,445,474 10,926,625 1 1,823,691 1 2,253,944 Longevity 2 00,585 412,438 483,099 4 83,099 Executive Prof Development 10,553 1 2,930 14 ,850 1 3,600 Subtotal Salaries & Benefits $ 2 9,489,641 $ 33,418,841 $ 32,985,288 $ 33,700,551

Maintenance and Operations
Stationery a nd O ffice $ 13 ,731 $ 14 ,501 $ 1 2,000 $ 1 2,000 Multi-Media, Promos, Subscrpt. 2 3,727 3 5,099 2 5,000 25,000 Small Tools and Equipment 174,779 6 4,057 68,000 6 8,000 Uniforms and Clothing 1 42,520 2 79,435 186,500 1 46,500 Safety and Health 4 49,193 340,209 4 13,000 4 00,000 Maintenance and Construction 3 3,119 51,392 32,500 3 2,500 Waste Disposal - - 1,500 1 ,500
Janitorial and Housekeeping 8 ,059 8 ,691 13,200 13 ,200 Telephone/Radio/Communications 1 24,349 1 10,844 8 6,544 86,544 Business Meetings 15,761 9 ,949 4,100 4 ,100 Dues and Memberships 5,058 4 ,660 6,803 6 ,803 Professional Development 13 8,824 169,220 164,771 1 24,771 Buildings and Structures - - 2 ,500 2,500
Landscaping and Sprinklers - - 5 00 500
Office E quipment 1 ,113 8 69 2 ,700 2,700
Other Equipment 1 1,819 6 ,138 2 4,000 2 2,000 Consulting 8 7,74 4 6 7,213 7 5,000 5 5,000
Engineering and Architectural 40,384 31,157 1 42,000 6 2,000 Financial & Information Svcs. 1 94,939 2 04,792 240,000 2 40,000 Medical and Health Inspection - 3 92 5,000 3 ,000 Public Safety 2,305,111 2 ,407,532 2,472,000 2, 472,000 External Rent 1 ,995 1,826 2 ,010 2 ,010

Proposed Budget for
Fiscal Year 2026-2027
168 City of Costa Mesa, California 216
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FIRE AND RESCUE DEPARTMENT BY ACCOUNT: ALL FUNDS

Maintenance and Operations (Continued)
Internal Rent Central Services 2,871 1 ,725 1 4,958 14,958 Internal Rent Postage 1 ,434 7 97 2,744 2 ,744 Internal Rent - Maintenance 3 55,900 3 55,900 3 55,900 355,900 Internal Rent - Repl Cost 5 11,500 5 11,500 5 11,500 511,500 Internal Rent - Fuel 158,063 193,477 193,400 1 93,400 Internal Rent Genl Liability 213,400 213,400 213,400 2 13,400 Internal Rent Workers’ Comp 5 85,952 5 85,952 5 85,952 585,952 Internal Rent Unemployment 1 2,206 1 2,206 1 2,206 12,206 Taxes and Assessments 28,225 3 2,711 13,900 13 ,900 Other Costs 2,740 6,471 1 ,600 1,600
Subtotal Maintenance & Operations $ 5,644,516 $ 5,722,116 $ 5,885,188 $ 5,688,188

Fixed Assets
Other Equipment 2 5,478 26 ,379 32,990 3 2,990 Subtotal Fixed Assets $ 25,478 $ 26,379 $ 32,990 $ 32,990

Total Fire and Rescue Department $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 39,421,729

*Includes Ambulance Program Contractual Services.
169City of Costa Mesa, California
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From Fiscal Year 2023-2024
Through Fiscal Year 2026-2027

Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FIRE AND RESCUE DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY Salaries and Benefits
Regular Salaries - Sworn $ 1 0,153,377 $ 1 1,006, 396 $ 1 1,329,338 $ 1 1,692,081 Regular Salaries - Non-Sworn 8 72,250 9 95,749 1,365,392 1,523,593 Regular Salaries - Part-Time 110,226 93,473 103,480 1 03,480 Overtime 3,466,007 5 ,330,307 2,666,125 2 ,666,125 Accrual Payoff - Excess Max. 9 1,167 90,342 3 2,600 3 2,600 Vacation/Comp. Time Cash Out 152,784 139,066 51,800 5 1,800 Holiday Allowance 437,824 5 85,824 502,869 5 02,869 Separation Pay-Off 13,611 7 2,784 41,400 4 1,400 Other Compensation 8 69,182 991,877 1 ,436,036 1 ,550,469 Cafeteria Plan 2 ,421,387 2,468,324 2 ,924,242 2,538,228 Medicare 2 45,213 2 92,706 210,366 2 47,263 Retirement 1 0,445,474 10,926,625 1 1,823,691 1 2,253,944 Longevity 2 00,585 412,438 483,099 4 83,099 Executive Prof Development 10,553 1 2,930 14 ,850 1 3,600 Subtotal Salaries & Benefits $ 2 9,489,641 $ 33,418,841 $ 32,985,288 $ 33,700,551

Proposed Budget for
Fiscal Year 2026-2027
170 City of Costa Mesa, California 218
From Fiscal Year 2023-2024
Through Fiscal Year 2026-2027

Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
FIRE AND RESCUE DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY

Fixed Assets
Other Equipment 2 5,478 26 ,379 32,990 3 2,990 Subtotal Fixed Assets $ 25,478 $ 26,379 $ 32,990 $ 32,990

Total Fire and Rescue Department $ 35,159,635 $ 39,167,336 $ 38,903,466 $ 39,421,729

*Includes Ambulance Program Contractual Services.
171City of Costa Mesa, California
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City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
220
Economic & Development ServicesDepartment
Economic & Development
Services Department
221

1.0 FTE - Director of Economic &
Development Services

1.0 FTE - Assistant Director

2.0 FTE - Senior Management Analyst

1.0 FTE - Executive Assistant

1.0 FTE - Administrative Assistant

1.0 FTE - Planning Manager

1.0 FTE- Econ. Dev. Administrator

1.0 FTE - Principal Planner

2.0 FTE - Senior Planner

3.0 FTE - Associate Planner

3.0 FTE - Assistant Planner

1.0 FTE - Permit Processing Specialist

1.71 FTE - Part-Time

1.0 FTE - Planning Manager

1.0 FTE - Principal Planner

1.0 FTE - Senior Planner

1.0 FTE - Assistant Planner

1.0 FTE - Grant Administrator

1.0 FTE - Management Analyst

1.0 FTE - Oﬃce Specialist II

1.0 FTE - Building Oﬃcial

1.0 FTE - Chief of Inspection

1.0 FTE - Chief Plans Examiner

3.0 FTE - Plan Check Engineer

1.0 FTE - Senior Combination
Inspector

2.0 FTE - Building Inspector II

2.0 FTE - Building Inspector I

1.0 FTE- Senior Permit Technician

4.0 FTE - Building Technician II

2.0 FTE - Permit Processing
Specialist

0.49 FTE - Part-Time

1.0 FTE - Code Enforcement
Manager

2.0 FTE - Senior Code
Enforcement Oﬃcer

7.0 FTE - Code Enforcement
Oﬃcer II

2.46 FTE - Part-Time
Proposed Budget for
Fiscal Year 2026-2027
174 City of Costa Mesa, California 222
The Economic & Development Services Department is responsible for guiding and permitting new development and reinvestment to ensure a high-quality built environment, long range strategic planning to ensure the City’s vision f or g rowth a nd de velopment i s m et; a nd e conomic de velopment t o f acilitate s trong b usiness g rowth.

The Department’s services include policy development, legislative review, entitlement processing, building plan review, building permit issuance and inspection, housing services and environmental sustainability programs. The Department has 53 full-time positions and 5.34 full-time equivalents. The Department comprises five (5) divisions; each division is allocated into different programs. The five divisions are as follows:

■ Administration
■ Advanced Planning and Housing
■ Building Safety
■ Code Enforcement
■ Current Planning and Economic Development

Code Enforcement Administration — 18100
Community Development Administration – 50001

Directs and coordinates the Department’s administrative activities, budgeting contract management, communications e fforts, a nd p rovides s upport t o t he C ity M anager; a nd s erves a s a l iaison t o t he C ity C ouncil, Planning Commission, Housing and Public Service Grant Committee and the Mobile Home Park Advisory Committee.

Planning — 18200
Advanced Planning and Housing – 20310

The Advanced Planning and Housing Division provides comprehensive City planning services in long-range planning b y m aintaining t he C ity’s G eneral P lan a nd S pecific P lans w ith n eeded u pdates, c oordinating w ith S tate and regional planning agencies including the State Department of Housing and Community Development and the Southern California Association of Governments, ensuring consistency with legislative mandates, tracking and responding to socio-economic and demographic trends, and monitoring grant opportunities for advance planning projects. Additionally, this section manages the annual funding cycles of the U.S. Department of Housing and Urban Development (HUD) for federal Community Development Block Grant (CDBG), HOME and CalHOME funding and subrecipients, including reporting and compliance. The Advanced Planning section is overseeing the Fairview D evelopmental C enter S pecific P lan e ffort, t he C ity’s fi rst C limate Ac tion a nd A daptation P lan, t he C ity’s Neighborhoods Where We All Belong (NWWAB) rezone program, Housing Element Implementation, monitoring of a ffordable h ousing a nd a greements, a nd i mplementing t he H UD c ertified a nd C ity a dopted C onsolidated P lan (2025-2029), the Annual Action Plan and Consolidated Annual Performance and Evaluation Reports (CAPERs).

Public Service Grants Programs – 20421

The Advanced Planning and Housing Division coordinates, administers and monitors public service grants allocated by the City Council and funded through the Community Development Block Grant Program (CDBG). Public service g rants a re a warded t o n onprofit a gencies p roviding s ervices s uch a s: f air h ousing s ervices; h omelessness prevention and services; youth, senior and disabled services through the City’s annual CDBG funding allocation.

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Single Family Housing Rehabilitation – 20422

Advanced Planning and Housing coordinates and administers the City’s Single Family Housing Rehabilitation program f or e ligible, l ow-income, C osta M esa h omeowners, b y p roviding g rants ( up t o $ 20,000) a nd/or d eferred z ero interest ( 0%) l oans ( up t o $ 50,000). R esidential p roperty r ehabilitation i ncludes i nterior a nd e xterior i mprovements addressing basic Zoning and Building Code violations, lead-based paint hazards, and other repairs.

CDBG Administration – 20427

Advanced P lanning a nd H ousing o versees t he p reparation a nd i mplementation o f t he f ederally-required fi ve-year Consolidated Plan and one-year Annual Action plans, and completes the Consolidated Annual Performance and Evaluation Report (CAPER) each year to ensure CDBG funded programs and projects comply with the goals of the plan. Additionally, Housing and Community Development (HCD) administers the City’s CDBG programs as approved by the City Council.

HOME Administration – 20440

Advanced Planning and Housing coordinates and administers the City’s federally-funded HOME programs as approved by the City Council to improve and enhance housing and suitable living environments for low and moderate-income residents. Additionally, HCD oversees the programs funded with the City’s annual HOME allocation t hrough t he fi ve-year C onsolidated P lan, o ne-year A nnual Ac tions P lans a nd t he c onsolidated a nnual performance and evaluation report (CAPER).

HOME Projects – 20445

Advanced Planning and Housing evaluates and presents affordable housing projects eligible for HOME grant funds for City Council approval and monitors and ensures compliance with federal regulatory reporting requirements.

For e ach p roject f unded, H CD c onfirms i ncome q ualification; c oordinates a ffordable h ousing a greements a nd loan d ocumentation, p erforms on going l oan m anagement a nd m onitoring; a nd c onducts c ompliance m onitoring through the life of each loan.

HOME-ARP Supportive Services – 20446

Advanced Planning and Housing oversees the preparation and implementation of the federally-required HOME-ARP Allocation Plan and administers the City’s Supportive Services contracts approved by the City Council, ensuring that HOME-ARP-funded programs comply with the goals of the plan. Additionally, HCD provides technical assistance and a ssures t hat n onprofit s ervice p roviders m aintain H UD c ompliance t hrough r eporting r equirements. F unds expire in 2030.

Proposed Budget for
Fiscal Year 2026-2027
176 City of Costa Mesa, California 224
Tenant Based Rental Assistance – 20448

Advanced Planning and Housing coordinates and administers the City’s HOME funded Tenant-Based Rental Assistance (TBRA) program. The TBRA program provides rental assistance for up to 24 months for low- income residents in the City. Security deposit or utility deposit assistance may also be provided in conjunction with rental assistance. The TBRA program is implemented in coordination with a local community-based nonprofit partner.

Current Planning – 20320

The Current Planning Division is responsible for implementing the Zoning Code, the goals, policies, and objectives of the City’s General Plan, and implement applicable State laws. The Division in general supports City decision-makers including the Director of Economic & Development Services Department. City Manager, Zoning Administrator, Planning Commission, and City Council. The Division’s role is to promote quality of life in the City and maintain the public health, safety, and general welfare of its businesses and residential communities.

Planning Commission – 20360

The Planning Division provides staff support to the Planning Commission, a seven-member advisory board to the City Council on land use and community development matters. The Planning Commission decides on discretionary planning applications (e.g. conditional use permits, variances, master plans, design reviews, subdivision maps, and residential developments). As an advisory body to the City Council, the Planning Commission also makes recommendations t o t he C ity C ouncil r egarding G eneral P lan a mendments, Z oning a mendments, S pecific P lans and other planning and land development matters.

Economic Development – 20370

The Economic Development program works closely with the Costa Mesa Chamber of Commerce and Travel Costa Mesa Conference and Visitor Bureau to attract new business, support the expansion of existing enterprises, and r etain k ey e stablishments t hat c ontribute s ignificantly t o t he l ocal e conomy. Ac tivities i nclude s treamlining application and approval processes, marketing Costa Mesa on both regional and national levels, coordinating with regional business and economic development groups, and enhancing the overall business climate within the City. The program also assists new companies in relocating to Costa Mesa and ensures a business-friendly atmosphere and to expedited services to support business establishment and growth.

Building Safety — 18300
Permit & Plan Check Services – 20410

The Building Safety Division provides local enforcement of mandatory State building standards, codes, and Costa Mesa M unicipal C ode p rovisions r elated t o t he c onstruction, m odification, u se, a nd o ccupancy o f p rivate a nd public buildings and properties. The division provides permit issuance and plan check services for new building construction a nd t he m odification o f e xisting s tructures. T he d ivision o versees t he r outing o f p lans a nd c oordination of building permit approvals with other divisions and City departments. Furthermore, the division calculates and collects building permits and other development related fees. The Building Division created and developed ten different permit applications that are fully automated and can be issued online. The Building Division monitors and tracks the senate and assembly bills to comply with State & Federal Laws. 177City of Costa Mesa, California
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Inspection Services – 20410

The B uilding S afety D ivision p rovides i nspection s ervices f or n ew b uilding c onstruction a nd t he m odification o f existing structures for compliance with State building standards, codes, and Costa Mesa Municipal Code provisions related t o t he c onstruction, m odification, u se, a nd o ccupancy o f p rivate a nd p ublic b uildings a nd p roperties.

Inspection services enforce codes that establish minimum requirements to safeguard the public health, safety and general w elfare; t o p rovide a ccess t o persons with disabilities ; t o p romote e nergy c onservation; a nd t o p romote a reasonable level of safety to emergency responders during emergency operations. The division conducts damage assessments and determines building safety following a major disaster such as an earthquake and investigates building construction, illegal conversions, disabled access and other building-related complaints generated by the p ublic. B uilding i nspectors a lso s upport t he C ity’s C ode E nforcement offi cers i n a ssessing h ousing u nits f or livability and safety concerns.

Code Enforcement — 18400
The Code Enforcement Division works in partnership with the public to promote and maintain a safe and desirable living and working environment by applying the division’s resources to respond to City Council priorities and to complaints generated by the public.

Code Enforcement – 20350

The Code Enforcement Division plays a vital role in safeguarding public health, safety, and welfare, working diligently to ensure a safe and desirable living and working environment for all residents and businesses in the community.

This division is responsible for the strategic enforcement of the Costa Mesa Municipal Code, focusing on various important areas including land use regulations, building construction standards, occupancy requirements, and maintenance of private properties. Additionally, the division addresses issues related to vacant lots, ensures proper nuisance abatement, and regulates the use of signage throughout the city.

Code Enforcement Officers respond to reports of sub-standard living conditions, building safety and property maintenance by inspecting properties and taking necessary action to pursue compliance in the form of property maintenance. The division works with the Building Safety inspection staff to ensure compliance with State law for property inspections.

The division also performs lodging inspections in conjunction with the Orange County Health Department and various other state and local agencies. The division inspects the City’s stock of lodging establishments for compliance with the Municipal Code, State Health & Safety laws, and other concerns that lead to blighted conditions in the community.

Code E nforcement O fficers p erform r outine i nspections o f C ity-approved c annabis b usinesses i n c lose c oordination with the Police Department and the State of California’s Bureau of Cannabis Control to ensure such facilities maintain compliance with applicable regulations.

A portion of the City is located in the CDBG geographical area. Accordingly, CDBG funds a subset of the Code Enforcement operations.

Cannabis Business Permitting/Inspections – 20350

Proposed Budget for
Fiscal Year 2026-2027
178 City of Costa Mesa, California 226
The Code Enforcement Division, in coordination with the Planning Division and other City Departments, is responsible for inspecting, monitoring, and enforcing the City’s zoning regulations and operating requirements for cannabis businesses. The division performs routine inspections of City-approved cannabis businesses in close coordination with the Police Department and the State of California’s Bureau of Cannabis Control to ensure such facilities maintain compliance with applicable regulations. 179City of Costa Mesa, California
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Fiscal Year 2025-2026 Accomplishments
■ The C ity m ade s ignificant s trides t oward t he N eighborhoods W here W e A ll B elong ( NWAAB) r ezoning e fforts, including completion of Round 1 and 2 community outreach, City Council approved of rezoning of the Housing Element sites and associated zoning map and zoning code amendments. The City submitted to HCD for consideration of housing element certification.
■ The C ity m ade s ignificant s trides f orward t owards d rafting t he F airview D evelopmental C enter S pecific P lan (FDC SP). The planning efforts focused on continuing community engagement through workshops and public meetings, honing in on key land use components that will shape the land use development of site, established a p roject d escription f or e nvironmental r eview a nd t hat w ill h elp d efine p olicies a nd s tandards, b egan d rafting the S pecific P lan, a nd i nitiated t he E IR p rocess p ursuant t o C alifornia E nvironmental Q uality Ac t. T he p roject is part of the approved Housing Element Programs (Program 3B) and is anticipated to be completed by 2026. ■ The C ity m ade s ignificant s trides t oward t he N eighborhoods W here W e A ll B elong ( NWAAB) r ezoning e fforts, including completion of Round 1 and 2 community outreach, City Council approved of rezoning of the Housing Element sites and associated zoning map and zoning code amendments. The City submitted to HCD for consideration of housing element certification.
■ Continued to process the Climate Action and Adaptation Plan (CAAP), conducted community outreach through summer 2025 and spring 2026. Held internal and external stakeholders’ meetings, developed detailed greenhouse gas emissions inventory and climate vulnerability and risk assessment, conducted an update meeting with the City Council in February 2026 and released draft policies for public review. ■ Completed a t echnical z oning c ode c lean-up t o p rovide t echnical u pdates a nd c larifications, i ncluding c odifying several Zoning Administrator Determinations, state law updates and establishing a procedure for determining shared parking requirements to reflect current parking trends. ■ Prepared and submitted to the Department of Housing and Urban Development (HUD) the City’s Consolidated Annual Performance & Evaluation Report (CAPER) and the 2025-2026 Annual Action Plan, in line with the City’s adopted five-year 2025-2029 Consolidated Plan.
■ Released the City’s Community Development Block Grant (CDBG) Public Service Grants program online application.
■ Awarded $1.5 million of HOME funds in a loan configuration to assist two affordable housing developments. ■ Exceeded t he a nnual g oal o f 1 0 p roperties w ith t he H OME f unded r ehabilitation p rogram w ithin t he fi rst s ix months of the fi scal year.
■ Exceeded the annual goal of assisting 10 low-income families through the HOME funded tenant based rental assistance program (TBRA) administered by Families Forward. ■ Responded to over 1,200 community concerns related to sub-standard housing, building violations, and property maintenance.
■ Victoria Place (220 Victoria Place) - Approved a 40-unit for-sale residential development, supporting the City’s ongoing efforts to expand ownership housing opportunities. ■ Bear Street (3150 Bear Street) - Approved a 142-unit ownership residential community, including townhomes and stacked flats, replacing an underutilized site with much-needed for-sale housing. ■ Accomplished C ouncil’s g oal o f r ecruiting a nd r etaining s taff b y fi lling t he P lanning M anager, P rincipal P lanner, Grant Administrator, two Building Inspectors, Permit Processing Specialist and two Senior Code Enforcement Officers vacancies.
■ Launched the Active Development Map, providing staff and the public with real-time visibility into development activity c itywide; a nd a p ublic-facing P arcel V iewer, e xpanding a ccess t o z oning, l and-use, a nd d evelopment related parcel information.
■ Developed and launched a Welcome Packet for New Businesses, improving onboarding, clarity of requirements, and awareness of available City resources.
■ Certified three Green Businesses, including a national retailer, supporting City sustainability goals. ■ City staff attended the 2026 Innovating Commerce Serving Communities (ICSC) Conference, supporting business attraction and site-selection outreach.
■ Attracted several businesses to Costa Mesa, including facilitation of a future tenant at the former At Home site, which will help decrease General Merchandise retail leakage from the City.

Proposed Budget for
Fiscal Year 2026-2027
180 City of Costa Mesa, California 228
■ The Code Enforcement Manager participated in the Orange County Code Enforcement Supervisors’ monthly meetings and a town hall to showcase the division’s community efforts. ■ Code Enforcement assisted the Neighborhood Improvement staff in addressing situations involving unhoused individuals, with a focus on safety and compliance of properties. ■ Code Enforcement responded and addressed 59 complaints of unpermitted residential and commercial and held administrative hearings.
■ Code Enforcement staff successfully collaborated with the Costa Mesa Police Department, Community Policing and Special Investigation units to address commercial and residential property issues. ■ The Building Division adopted the new 2025 California Building Construction Codes. ■ Building s taff p articipated i n a nnual t raining o ffered b y t he C alifornia B uilding O fficials T raining I nstitute f or significant changes to the Building Codes.
■ Completed the implementation of SB326 and SB720 requirements for the Exterior Elevated Elements (EEE) into TESSA.
■ Building staff continued to work closely with the Sanitation District, Mesa Water, and Orange County Health to streamline and enhance the permitting process.
■ The inspection staff performed approximately 25,000 building inspections.

Fiscal Year 2026-2027 Goals
■ Complete the City’s Neighborhoods Where We All Belong (NWWAB) community visioning and re-rezoning efforts. Provide the City Council and public with regular project progress updates. ■ Complete the required objective design guidelines in conjunction with the City’s community visioning and re-zoning efforts to provide for high-quality new housing opportunities and revitalization of key commercial and industrial corridors.
■ Continue t o w ork w ith t he S tate a gencies i n p reparing t he C ity’s F airview D evelopment C enter ( FDC) s pecific plan, with the goal of City Council approval in 2026. Provide the City Council and public regular project progress updates.
■ Complete the City’s Climate Action and Adaptation Plan (CAAP) and begin implementation. ■ Manage a high volume of development applications, while promoting high-quality neighborhoods and businesses in Costa Mesa. Provide the public and decision-makers with informative staff reports, clear recommendations, and appropriate project informational materials.
■ Continue to recruit and retain high quality staff to assist with the City’s many advanced planning efforts and current planning demands. Continue long-term resource and succession planning. Pursue additional staff training, including the use of new technologies, to enhance customer service. ■ Continue coordinating and funding efforts for the approved affordable senior housing project at the City’s Senior Center site and assist Jamboree Housing in completing building permit plan check. During construction, work with the construction team to meet the project timing goals, which will ultimately provide for additional senior affordable housing resources in the City.
■ Continue to facilitate, promote, and improve the City’s efforts regarding Green Businesses. ■ Continue to monitor and modify the City’s online land development and business license permitting system (TESSA) to ensure that permits and licenses are obtained in a timely manner with a user-friendly public interface.

Provide the City Council with an annual update of the system progress. ■ Prioritize and complete General Plan and municipal code updates required to comply with State mandates for hazard planning, parking, active transportation, environmental justice, and open space. ■ Assist housing developers with and promote the City’s adopted Affordable Housing Ordinance with the goal of increasing housing production and providing affordable housing opportunities in the city. ■ Prepare and submit to the Department of Housing and Urban Development (HUD) the City’s 2026-2027 Annual Action Plan.
■ Prepare draft guidelines for City Council review of Measure Q “First-Time Homebuyer Program”. ■ Maintain timely permit and inspection services for all development applications. Continue to enhance online permitting services and plan check response times.
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■ Continue promoting Public Health and Safety by identifying and addresses potential hazards like unsafe structures, unsanitary living conditions.
■ Improving Q uality o f L ife b y a ddressing n uisances t o c reate a c lean, o rderly, a nd s afe e nvironment, f ostering a sense of pride and a better living experience for all residents. ■ Continue to collaborate with commercial business owners to promote and safeguard public health, safety, and welfare. This collaboration involves helping businesses meet established standards, which in turn supports their compliance efforts. By doing so, we can facilitate smooth operations and ensure these businesses operate legitimately.

Proposed Budget for
Fiscal Year 2026-2027
182 City of Costa Mesa, California 230
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Housing
Commitments

GOALS AND OBJECTIVES
Environmental
Sustainability
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Complete the City’s Neighborhoods Where We All
Belong (NWWAB) community visioning and re-rezoning
efforts. Provide the City Council and public with regular project progress updates.

;
TRUE
;
TRUE
2 Continue to work with the State agencies in preparing the C ity’s Fairview D evelopment Center (FDC) s pecific plan, with the goal of City Council approval in 2026.

Provide the City Council and public regular project
progress updates.
;
TRUE
3 Complete the City’s Climate Action and Adaptation Plan (CAAP) and begin implementation.

;
TRUE
4 Manage a high volume of development applications,
while promoting high-quality neighborhoods and
businesses in Costa Mesa. Provide the public and
decision-makers with informative staff reports,
clear recommendations, and appropriate project
informational materials.

;
TRUE
5 Continue to recruit and retain high quality staff to
assist with the City’s many advanced planning efforts
and current planning demands. Continue long-term
resource and succession planning. Pursue additional
staff training, including the use of new technologies, to enhance customer service.

;
TRUE
6 Continue coordinating and funding efforts for the
approved affordable senior housing project at the
City’s Senior Center site and assist Jamboree Housing
in completing building permit plan check. During
construction, work with the construction team to meet
the project timing goals, which will ultimately provide for additional senior affordable housing resources in the City.
;
TRUE
7 Continue to facilitate, promote and improve the City’s efforts regarding Green Businesses.

;
TRUE
8 Continue to monitor and modify the City’s online
land development and business license permitting
system (TESSA) to ensure that permits and licenses
are obtained in a timely manner with a user-friendly
public interface. Provide the City Council with an annual update of the system progress.

;
TRUE
9 Prioritize and complete General Plan and municipal
code updates required to comply with State mandates
for hazard planning, parking, active transportation,
environmental justice, and open space.

;
TRUE
10 Assist housing developers with and promote the City’s adopted Affordable Housing Ordinance with the goal of
increasing housing production and providing affordable
housing opportunities in the city.

;
TRUE
Goals and Objectives
The goals and objectives of the Development Department were developed in alignment with the City Council’s priorities.
183City of Costa Mesa, California
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Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Housing
Commitments

GOALS AND OBJECTIVES
Environmental
Sustainability
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
11 Prepare and submit to the Department of Housing and
Urban Development (HUD) the City’s 2026-2027 Annual
Action Plan.

;
TRUE
12 Prepare draft guidelines for City Council review of
Measure Q “First-Time H omebuyer P rogram”. ;
TRUE
13 Provide high quality customer service and maintain high level of customer satisfaction.

;
TRUE
14 Maintain timely permit and inspection services for all development applications. Continue to enhance online
permitting services and plan check response times.

;
TRUE
;
TRUE
15 Continue promoting Public Health and Safety by
identifying and addresses potential hazards like unsafe structures, unsanitary living conditions.

;
TRUE
;
TRUE
16 Improving Quality of L ife b y a ddressing nuisances t o create a clean, orderly, and safe environment, fostering a sense of pride and a better living experience for all residents.

;
TRUE
;
TRUE
17 Continue to collaborate with commercial business
owners to promote and safeguard public health,
safety, and welfare. This collaboration involves helping businesses meet established standards, which in turn
supports their compliance efforts. By doing so, we
can facilitate smooth operations and ensure these
businesses operate legitimately.

;
TRUE
;
TRUE

Proposed Budget for
Fiscal Year 2026-2027
184 City of Costa Mesa, California 232
Performance Measures/Workload Indicators:

Workload Indicators

FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Estimated
(Adopted)
FY 26-27
Estimated

PLANNING DIVISION
Number of customers assisted at the customer service counter* 1,895 2,000 1,900 1700 Number of general calls/emails 1950
Number of land use applications reviewed 363 300 450 316 Number of building permits reviewed 1,791 2,000 2,000 2580

BUILDING DIVISION
Number of customers assisted at the customer service counter* 2,877 3,000 2,500 3500 Number of building permits issued 2,635 2,500 2,800 3000 Number of building site inspections performed 20,880 20,000 24,000 26000 Number of plan checks performed 1,976 2,000 1,800 2000
Number of building code violations issued 51 50 N/A NA
Plan checks approved per FTE 225 to 1 220 to 1 332 to 1 650 to 1 Number of inspections conducted per inspector 4,176 to 1 4,000 to 1 4,000 to 1 5200 to 1

COMMUNITY IMPROVEMENT DIVISION
Number of calls received to report code violations 786 750 800 800 Number of community concerns addressed (in person, by phone, email, 311 app) 1,726 1,700 1,800 2,200
Number of administrative citations issued 186 175 185 150 Number of cases closed p er Code officer 127 to 1 120 to 1 126 to 1 1 to 300 Number of actions per C ode officer 6,630 to 1 6,000 to 1 6,300 to 1 6,500 to 1

HOUSING AND COMMUNITY DEVELOPMENT DIVISION
Federal CDBG and HOME housing grant funds administered $1.5m $1.4m $1.4m $1.3M Number of housing rehabilitation grants/loans issued 13 10 10 14 Number of housing workshops held (English and Spanish)*** 19 16 16 15 *Decrease i n counter a ctivity r eflects the implementation of new Totally Electronic S elf-Service A pplication (TESSA) o nline p ermitting. ***Includes w orkshops r elated to f air h ousing, tenant r esources, S pecific Plans, Consolidated P lans, etc.

Performance Measures

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated

PLANNING DIVISION
Percentage of entitlement applications to Planning Commission (PC) within three months of the date determined complete
85% 90% 95% 90%
Percentage of entitlement applications for Zoning Administrator (ZA) review within two months of the date determined complete
78% 80% 85% 75%

BUILDING DIVISION
Percentage of plan checks reviewed within 14 days 48%* 65% 75% 75% Percentage plan review re-checks reviewed within 10 working days 60% 75% 85% 85%

COMMUNITY IMPROVEMENT DIVISION
Percentage of community concerns investigated within 5 days 59%* 80% 85% 85% Percentage of Code Enforcement cases resolved within 30 days 60% 75% 80% 80% Percentage of Code Enforcement cases over 60 days old 19% 15% 15% 10% *This is a conservative estimate, was not previously tracked in TESSA and subsequently the results were sporadic.

Customer Service Goal
Goal
Average response time to customer inquiries within 24 hours 95% 185City of Costa Mesa, California
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Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he Ec onomic a nd D evelopment S ervices D epartment i s $ 12.4 m illion, a n increase of $0.9 million or 8.2 percent, compared to the adopted budget for Fiscal Year 2025-26. Increases within the G eneral F und ( Fund 1 01) a re p rimarily a ttributable t o s alary a nd b enefit a djustments r esulting f rom r ecently negotiated labor contracts. These increases are partially offset by reductions in operating expenditures to align spending with projected revenues

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT BY FUNDING SOURCE

General Fund - 101 $ 9, 082,786 $ 9 ,571,371 $ 9, 695,735 $ 1 0,651,781 1st Time H omebuyers P rg(MeasQ) - 1 40 - - 227,472 2 27,472 Disaster Fund - 150 - 126 - -
American Rescue Plan Fund - 204 - 4 11,656 - - HOME Program Fund - 205 7 88,958 5 51,646 6 40,632 7 30,814 CDBG Fund - 207 5 87,182 605,826 919,645 8 12,257 Grants - State - 231 1 61,477 3 8,458 - -
IT Replacement Fund - 603 29,073 2 ,321 - -
Total ECONOMIC & DEVELOPMENT SERVICES
DEPARTMENT $ 10,649,476 $ 11,181,403 $ 11,483,484 $ 1 2,422,324 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT BY PROGRAM
ADMINISTRATION - 18100
Development Administration - 50001
Salaries a nd B enefits $ 1 ,012,954 $ 1 , 257,959 $ 1 ,584,246 $ 1 ,684,717 Maintenance and Operations 1 33,999 1 22,772 350,820 3 50,820 Fixed Assets 1 1,655 9,908 2 4,250 24,250
Subtotal Development Admin. $ 1,158,608 $ 1,390,639 $ 1,959,316 $ 2,059,787

Economic Development - 20370
Salaries a nd B enefits $ 2 66,162 $ 2 81,176 $ 2 32,400 $ 2 56,953 Maintenance and Operations 74,355 14 6,038 1 ,250 $ 1 ,250 Fixed Assets 5,319 - - -
Subtotal Economic Development $ 34 5,836 $ 427,214 $ 2 33,650 $ 258,203 PLANNING - 18200
Planning - 20320
Salaries a nd B enefits $ 2 ,155,392 $ 2 ,320,335 $ 2 ,275,325 $ 2 ,598,349 Maintenance and Operations 3 30,898 2 49,256 2 80,590 269,490 Fixed Assets 21,362 429 - -
Subtotal Planning $ 2,507,653 $ 2,570,021 $ 2,555,915 $ 2,867,839

Planning Commission - 20360
Maintenance and Operations 35,157 3 8,292 3 6,940 36,940 Subtotal Planning Commission $ 35,157 $ 38,292 $ 3 6,940 $ 36,940

Proposed Budget for
Fiscal Year 2026-2027
186 City of Costa Mesa, California 234
Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Local Action Early Plan (LEAP) - 20395
Maintenance and Operations 9 5,984 8 ,235 - - Subtotal Local Action Early Plan (LEAP) $ 95,984 $ 8 ,235 $ - $ -

BUILDING SAFETY - 18300

Building Safety - 20410
Salaries a nd B enefits $ 2, 944,186 $ 3 ,145,887 $ 3 ,17 7,0 07 $ 3 ,484,620 Maintenance and Operations 421,204 461,394 4 76,885 4 68,885 Fixed Assets 8,131 1 ,545 4 ,000 4,000
Subtotal Building Safety $ 3,373,522 $ 3,608,826 $ 3,657,892 $ 3, 957,505

CODE ENFORCEMENT - 18400

Code Enforcement - 20350
Salaries a nd B enefits $ 1 ,799,082 $ 1 ,673,476 $ 1 ,937, 218 $ 2 ,003,143 Maintenance and Operations 174,445 13 8,351 14 6,649 129,749 Fixed Assets 3 6,936 - - -
Subtotal Code Enforcement $ 2,010,463 $ 1,811,828 $ 2,083,867 $ 2,132,892

HOUSING ADMINISTRATION - 11310

Public Service Programs - 20421
Salaries a nd B enefits $ 3 2,543 $ 2 8,686 $ - $ 3 0,000 Maintenance and Operations 1 20,808 1 15,714 1 21,575 1 02,147 Subtotal Public Service Programs $ 153,351 $ 144,400 $ 12 1,575 $ 132,147

CDBG Administration - 20427
Salaries a nd B enefits $ 8 8,158 $ 1 14,017 $ 70 ,373 $ 7 2,891 Maintenance and Operations 5 0,531 6 7,213 7 2,617 7 7,057 Fixed Assets - - - 26 ,250
Subtotal CDBG Administration $ 138,689 $ 181,230 $ 142,990 $ 176,198

CDBG Housing Rehab Admin. - 20455
Salaries a nd B enefits $ 4 1,255 $ 3 7, 291 $ 42 ,433 $ - Maintenance and Operations - - 8 ,274 7 0,000 Subtotal CDBG Housing Rehab Admin. $ 41,255 $ 37,291 $ 50,707 $ 70,000

HOME - 11320

Single Family Housing Rehab. - 20422
Salaries a nd B enefits $ 14 ,759 $ 3 4,635 $ 3 7, 838 $ 42 ,535 Maintenance and Operations 1 87,647 2 85,031 239,139 393,948 Subtotal Single Family Housing Rehab $ 2 02,406 $ 319,666 $ 276,977 $ 436,483

HOME Program - 20440
Salaries a nd B enefits $ 5 3,819 $ 1 8,015 $ 5 2,063 $ 1 1,4 37 Maintenance and Operations 1,557 19,136 4 0,454 2 6,295 187City of Costa Mesa, California
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Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Subtotal HOME Program $ 55,375 $ 37,151 $ 92,517 $ 37,732

HOME Projects - 20445
Maintenance and Operations $ - $ - $ 7 5,262 $ 5 6,599 Subtotal HOME Projects $ - $ - $ 75,262 $ 56,599

HOME ARP - 20446
Salaries a nd B enefits $ - $ - $ 4 5,876 $ - Subtotal HOME Projects $ - $ - $ 45,876 $ -

Tenant Based Rental Assistance - 20448
Maintenance and Operations $ 1 57,55 3 $ 1 90,480 $ 1 50,000 $ 2 00,000 Subtotal TBRA Projects $ 1 57,553 $ 190,480 $ 150,000 $ 200,000

CalHome - 20460

TOTAL ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT

Salaries a nd B enefits $ 8 ,452,749 $ 8 ,915,953 $ 9, 454,779 $ 1 0,184,644 Maintenance and Operations 2 ,113,323 2 ,253,568 2 ,000,455 2 ,183,180 Fixed Assets 8 3,403 1 1,882 28,250 54,500

TOTAL ECONOMIC & DEVELOPMENT SERVICES
DEPARTMENT $ 10,649,476 $ 11,181,403 $ 11,483,484 $ 1 2,422,324 Proposed Budget for
Fiscal Year 2026-2027
188 City of Costa Mesa, California 236
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT BY ACCOUNT: ALL FUNDS Salaries and Benefits
Regular Salaries - Non-Sworn $ 5 ,006,117 $ 5 ,318,139 $ 5 ,688,606 $ 6 ,266,833 Regular Salaries - Part-Time 234,313 1 88,390 3 02,217 206,786 Overtime 328,312 179,242 1 29,467 1 28,467
Accrual Payoff - Excess Max. 2 ,962 - 3,300 3, 300 Vacation/Comp. Time Cash Out 2 3,542 4 4,121 12,500 1 2,500 Holiday Allowance 14 ,544 14,661 2 18 -
Separation Pay-Off 7 4,861 53,398 2 ,500 2,500 Other Compensation 61 ,831 61,166 69,303 85 ,785 Cafeteria Plan 953,873 992,466 1 ,122,750 1,078,488 Medicare 87,555 89,621 86,410 107,983
Retirement 1,654,869 1 ,963,535 2,016,290 2 ,270,903 Executive Prof Development 5,706 6 ,132 14,200 14 ,200 Auto Allowance 4,265 5 ,080 6 ,900 6 ,900
Unemployment - - 20 -
Workers’ Compensation - - 98 -
Subtotal Salaries & Benefits $ 8,452,749 $ 8,915,953 $ 9,454,779 $ 10,184,644

Maintenance and Operations
Stationery a nd O ffice $ 2 2,600 $ 1 7,5 86 $ 2 9,500 $ 1 8,500 Multi-Media, Promos, Subscrpt. 82,019 59,607 20,989 2 0,989 Small Tools and Equipment 2 9,868 19,068 6 ,032 3 ,091 Uniforms and Clothing 13,786 5 ,529 1 1,000 8,000 Safety and Health 1 ,304 1 ,299 600 6 00
Maintenance and Construction 7 10 4 99 - -
Waste Disposal - 1 ,836 - -
Janitorial and Housekeeping 9, 437 12,000 - - Legal Advertising/Filing Fees 1 6,456 25 ,225 23,500 21,500 Advertising and Public Info. 4 ,414 2 ,411 2 ,000 8,500 Telephone/Radio/Communications 2 1,924 23,878 16,300 1 6,300 Business Meetings 3 ,801 5 ,640 5 ,200 4,700 Mileage Reimbursement 54 25 0 1,350 3 50
Dues and Memberships 1 6,567 1 7,774 1 6,385 1 6,085 Board Member Fees 3 3,200 3 4,400 33,600 3 3,600 Professional Development 24,042 2 4,252 5 1,041 25,955 Office E quipment 6 ,420 4 ,250 4,100 -
Consulting 449,327 394,467 3 17,329 3 19,028 Legal 3,153 - 4 50 -
Engineering and Architectural 3 40,989 3 88,520 3 97,348 397,348 Public Safety 7 89 7 55 - -
External Rent 5 3,209 5 6,896 64,698 6 4,698 Grants, Loans and Subsidies 794,890 1 ,002,579 8 24,420 1,049,864 Internal Rent Central Services 8 ,646 6 ,835 18,736 1 8,736 Internal Rent Postage 40,813 1 9,523 27,339 2 6,797 Internal Rent - Maintenance 36,787 37,347 36,787 3 6,787 189City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT BY ACCOUNT: ALL FUNDS Maintenance and Operations (Continued)
Internal Rent - Repl Cost 1 8,160 1 7,600 1 8,160 18,160 Internal Rent - Fuel 18,216 11,800 11,800 1 1,800 Internal Rent Genl Liability 36,183 36,183 36,183 3 6,183 Internal Rent Workers’ Comp 19,529 19,529 19,529 1 9,530 Internal Rent Unemployment 6 ,031 6 ,031 6 ,031 6,031 Other Costs - - 4 8 4 8
Subtotal Maintenance & Operations $ 2,113,323 $ 2,253,568 $ 2,000,455 $ 2,183,180

Fixed Assets
Office E quipment 4,515 - - -
Other Equipment $ 78 ,889 $ 1 1,882 $ 2 8,250 $ 5 4,500 Subtotal Fixed Assets $ 8 3,403 $ 11,882 $ 28,250 $ 54,500

TOTAL ECONOMIC & DEVELOPMENT
SERVICES DEPARTMENT $ 10,649,476 $ 11,181,403 $ 11,483,484 $ 1 2,422,324 Proposed Budget for
Fiscal Year 2026-2027
190 City of Costa Mesa, California 238
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
ECONOMIC & DEVELOPMENT SERVICES DEPARTMENTBY ACCOUNT: GENERAL FUND ONLY Salaries and Benefits
Regular Salaries - Non-Sworn $ 4 ,651,546 $ 5 ,054,418 $ 5 ,264,229 $ 5 ,979,846 Regular Salaries - Part-Time 183,143 14 4,597 1 92,469 109,332 Overtime 2 92,214 174,463 1 16,467 116,467
Accrual Payoff - Excess Max. 2 ,962 - 3,300 3, 300 Vacation/Comp. Time Cash Out 2 3,542 4 4,121 12,500 1 2,500 Holiday Allowance 1 4,393 14 ,009 - -
Separation Pay-Off 7 4,861 53,398 2 ,500 2,500 Other Compensation 59,348 5 9,072 67,182 7 3,926 Cafeteria Plan 8 99,481 957,188 1 ,020,384 1,020,384 Medicare 82,585 86,012 78,551 102,843
Retirement 1,547,077 1,816,595 1,828,117 2 ,156,646 Executive Prof Development 5,706 6 ,132 14,200 14 ,200 Auto Allowance 4,265 5 ,080 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 7,841,123 $ 8,415,086 $ 8,606,799 $ 9,598,845 Maintenance and Operations
Stationery a nd O ffice $ 2 2,600 $ 1 7,5 86 $ 2 4,500 $ 1 8,500 Multi-Media, Promos, Subscrpt. 82,019 59,607 20,989 2 0,989 Small Tools and Equipment 2 9,868 19,068 3,091 3 ,091 Uniforms and Clothing 13,786 5 ,529 1 1,000 8,000 Safety and Health 1 ,304 1 ,299 600 6 00
Maintenance and Construction 7 10 4 99 - -
Waste Disposal - 1 ,836 - -
Janitorial and Housekeeping 9, 437 12,000 - - Legal Advertising/Filing Fees 1 6,456 25 ,225 2 1,500 21,500 Telephone/Radio/Communications 2 1,924 23,878 16,300 1 6,300 Business Meetings 3 ,801 5 ,640 4 ,700 4,700 Mileage Reimbursement 54 25 0 1,350 3 50
Dues and Memberships 7, 700 9 ,971 12,385 10,385 Board Member Fees 3 3,200 3 4,400 33,600 3 3,600 Professional Development 24,042 2 3,453 4 3,455 23,455 Office E quipment 6 ,420 4 ,250 4 ,000 -
Consulting 3 11,684 3 04,969 2 33,222 233,222 Engineering and Architectural 3 40,989 3 88,520 3 97,348 397,348 Public Safety 7 89 7 55 - -
External Rent 5 3,209 5 6,896 64,698 6 4,698 Internal Rent Central Services 8 ,646 6 ,835 18,736 1 8,736 Internal Rent Postage 4 0,791 1 9,523 26,797 2 6,797 Internal Rent - Maintenance 36,200 36,200 36,200 3 6,200 Internal Rent - Repl Cost 1 7,600 1 7,600 1 7,600 1 7,600 Internal Rent - Fuel 18,216 11,800 11,800 1 1,800 Internal Rent Genl Liability 33,221 33,221 33,221 3 3,221 Internal Rent Workers’ Comp 18,056 18,056 18,056 1 8,056 Internal Rent Unemployment 5 ,538 5 ,538 5 ,538 5,538 Subtotal Maintenance & Operations $ 1,158,259 $ 1,144,404 $ 1,060,686 $ 1,024,686

Fixed Assets
191City of Costa Mesa, California
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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
ECONOMIC & DEVELOPMENT SERVICES DEPARTMENTBY ACCOUNT: GENERAL FUND ONLY Office E quipment $ 4 ,515 $ - $ - $ -
Other Equipment 78,889 1 1,882 28,250 2 8,250 Subtotal Fixed Assets $ 8 3,403 $ 11,882 $ 28,250 $ 28,250

TOTAL ECONOMIC & DEVELOPMENT
SERVICES DEPARTMENT $ 9,082,786 $ 9,571,371 $ 9 ,695,735 $ 10,651,781 Proposed Budget for
Fiscal Year 2026-2027
192 City of Costa Mesa, California 240
Public Works Department
Public Works
Department
241
Public Works Department
Public Works Administration

1.0 FTE - Public Works Director

1.0 FTE - Executive Assistant

2.0 FTE - Senior Management Analyst
Transportation Services

1.0 FTE - Transportation Services
Manager

1.0 FTE - Senior Engineer

1.0 FTE - Assistant Engineer

1.0 FTE - Associate Engineer

2.0 FTE - Engineering Technician III

1.0 FTE - Active Transportation
Coordinator

1.0 FTE - Part-Time
Engineering

1.0 FTE - City Engineer

1.0 FTE - Assistant City Engineer

2.0 FTE - Administrative Assistant

2.0 FTE - Senior Engineer

2.0 FTE - Assistant Engineer

6.0 FTE - Associate Engineer

3.0 FTE - Construction Inspector

3.0 FTE - Engineering Tech III

1.0 FTE - Engineering Tech II

1.0 FTE - Oﬃce Specialist II

1.50 FTE - Part-Time
General Services

1.0 FTE - Deputy Public Works Director

1.0 FTE - Assistant Engineer

1.0 FTE - Associate Engineer

2.0 FTE - Superintendent

2.0 FTE - Maintenance Supervisor

1.0 FTE - Senior Management Analyst (Solid Waste
Coordinator)

1.0 FTE - Senior Engineer

1.0 FTE - Lead Equipment Mechanic

2.0 FTE - Equipment Mechanic III

2.0 FTE - Equipment Mechanic II

1.0 FTE- Equipment Mechanic I

2.0 FTE - Lead Facilities Maintenance Technician

2.0 FTE - Facilities Maintenance Technician

3.0 FTE - Maintenance Worker

1.0 FTE - Oﬃce Specialist

2.0 FTE - Storekeeper

0.75 FTE - Part-Time
Maintenance Services

1.0 FTE - Maintenance Services
Manager

1.0 FTE - Administrative Assistant

1.0 FTE - Maintenance
Superintendent

3.0 FTE - Maintenance Supervisor

7.0 FTE - Lead Maintenance Worker

6.0 FTE - Senior Maintenance
Worker

1.0 FTE - Maintenance Worker

1.0 FTE - Maintenance Assistant

2.75 FTE - Part-Time
Proposed Budget for
Fiscal Year 2026-2027
194 City of Costa Mesa, California 242
The Public Works Department provides services related to engineering design, construction management, transportation, street, energy and sustainability, park and city facilities maintenance, water quality, waste management a nd r ecycling, s treet s weeping, a nd fl eet m anagement. T he D epartment h as 7 9 f ull-time s taff members c omposed o f fi ve ( 5) m anagement, f our ( 4) c lerical, a nd 7 0 p rofessional/technical s taff. P art-time staffing consists of six (6) full-time equivalents. The Department is organized in five divisions as follows:
■ Public Works Administration
■ General Services
■ Engineering
■ Transportation Services
■ Maintenance Services

Public Works Administration - 19100
Administration – 50001
Provides t he o verall c oordination, d irection, a nd o versight f or a ll D epartment a ctivities, w hich i nclude fi ve divisions, overseeing 25 municipal services functions. Administrative management includes development of the Department’s op erational b udget; p ersonnel m anagement; s ecuring a nd i mplementing g rant p rograms; e valuation and m onitoring o f c urrent a nd p ending l egislation’s i mpact on D epartment p rograms a nd op erations; o verseeing short a nd l ong-range c apital i mprovement p lanning a nd de velopment; a nd a ccomplishing t he D epartment’s strategic goals, operational goals and objectives within general policy guidelines.

General Services –
The General Services Division focuses on planning, designing, implementing and maintaining City facilities; fleet infrastructure procurement and maintenance, and providing commercial, multi-family, and construction and demolition waste collection and recycling services.

Recycling – 20230
Implements and monitors the City’s compliance to solid waste and recycling mandates such as the Integrated Waste Management Act 1989 AB939, AB341 Mandatory Recycling for Commercial and Multi-family sectors, AB1826 Mandatory Commercial Organics Recycling, SB 1383 California’s Short-Lived Climate Pollutant Reduction Law, and the California Green Building Standards Code (CALGreen) waste diversion requirements for construction and demolition projects. Administers the non-exclusive Waste Hauling Franchise and Contractor Self-Haul Permit.

Manages the City’s participation in State grant and recycling programs including the Used Oil Recycling Grant and Beverage Container Recycling Grant. Responsible for participation in and compliance with the California Department of Resources Recycling and Recovery (CalRecycle) jurisdiction reviews and submission of the Local Jurisdiction Electronic Annual Report (EAR) to CalRecycle.

Facility Maintenance – 50910
Maintains, repairs, and rehabilitates 23 City-owned buildings, over 314,606 Sq. Ft including those leased from and to outside agencies. Administers and supervises contract services required for maintaining all City facilities.

Equipment Maintenance – 50920
Manages p rocurement o f v ehicles a nd e quipment. M aintains a nd r epairs t he C ity’s fl eet o f o ver 3 50 v ehicles including fi re a pparatus, p olice v ehicles a nd m otorcycles, m aintenance t rucks, g eneral u se v ehicles, e mergency back-up generators, trailers and other miscellaneous equipment. Monitors and ensures that all the City’s fuel sites, fuel storage tanks and hazardous material storage areas are compliant with all County regulations. 195City of Costa Mesa, California
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Warehouse – 50925
Orders, stocks and maintains an inventory of essential goods and materials for the City. Delivers requisitions of goods to all City facilities and departments. Receives shipments/orders. Maintains City surplus property transfers and schedule pick up of items resalable for auction, electronic e-waste, scrap metal recycles, tire disposal and processes recyclable items. Performs end-of-month reconciliations and processes.

Engineering – 19200
The Engineering Division is responsible for the design and construction of the City’s Capital Improvement Program and public works infrastructure. The Division is also responsible for the procurement of real property and public rights-of-way, design and development of all parks and open space facilities, administration of water quality regulations, engineering design, construction and project management, inspection of public works improvements and facilities, consultant management, development review and processing, encroachment permitting, and utility coordination. The Engineering Division is organized into eight (8) sections.

Water Quality – 2 0510
Implements and monitors the City’s compliance with the National Pollutant Discharge Elimination System (NPDES).

Coordinates a nd i mplements t he S anta A na R egional W ater Q uality B oard ( Regional W ater B oard) d irectives f or compliance w ith t he F ederal C lean W ater Ac t a nd C alifornia’s P orter-Cologne W ater Q uality C ontrol Ac t, a s i t relates to City draining into the Santa Ana River and the Newport Bay. Performs inspections related to commercial / industrial sites as well as construction sites. Conducts illicit discharge and illicit connection enforcement.

Prepares the City’s Annual Program Effectiveness Assessment (PEA) and coordinates compliance with Newport Bay Total Maximum Daily Load (TMDL) regulations. Also administers activities related to the Municipal Separate Storm Sewer System (MS4) permit as regulated by the Regional Water Board.

Street Improvements – 30112
Designs p lans a nd s pecifications f or t he c onstruction a nd m aintenance o f C ity C apital S treet I mprovement Projects. Administers the Pavement Management Program (PMP). Manages design consultant contracts.

Reviews and approves engineering submittals, including improvement plans, material reports, utility work, engineering estimates, and Americans with Disabilities Act (ADA) accessibility. Performs construction and project management, as well as inspections during construction. Secures Federal, State, and local competitive grant funding for street improvement projects.

Storm Drain Improvements – 30122
Designs and manages the construction and maintenance of the City’s Storm Drain System (approximately 64.7 miles of storm drain), as it relates to the implementation of the Storm Drain System Master Plan (SDSMP).

Curb & Sidewalks – 30130
Establishes the parkway maintenance program to remove and replace damaged curbs and gutters, driveways, sidewalks, curb ramps, and cross-gutters throughout the City.

Development – 30310
Conducts development review of private development submittals and permitting work in the public rights-of-way.

Identifies de velopment c onditions f or P lanning C ommission he arings a nd i n-house de velopment r eviews.

Administers Subdivision Map Act requirements. Provides staff support to the Planning Commission.

Real Property – 30320
Responsible for land acquisition, vacation, easements, and abandonment of rights-of-way. Conducts acquisition negotiations and manages agreements. Responsible for preparing real property documents and administering consultant services related to the acquisition and relinquishment of real property. Reviews requests and administers street dedications and easement vacations / abandonments. Performs recordation of documents at the County Clerk-Recorder’s Office.

Proposed Budget for
Fiscal Year 2026-2027
196 City of Costa Mesa, California 244
Park Development – 40112
Acquires, develops, and renovates park infrastructure. Manages the design and construction of new park projects and renovation of existing park facilities, including equipment and structures. Responsible for master planning new park and open space areas and managing compliance of Capital Improvement Projects within the Master Plan of Parks and Recreation. Secures park and open space competitive grant funding.

Construction Management – 50002
Administers construction projects and construction management contracts. Manages and inspects construction activities and projects in the public rights-of-way, including inspections, for City-owned buildings and properties, and public facilities. Oversees the construction and implementation of the City’s Capital Improvement Program (CIP).

Administers compliance with Federal and state labor laws, including Prevailing Wage regulations, Disadvantaged Business Participation, Equal Opportunity Employment practices, and Public Contract Laws.

Transportation Services – 19300
The T ransportation S ervices D ivision i s r esponsible f or t he o peration a nd m aintenance o f t he t raffic o perations infrastructure i ncluding, b ut n ot l imited t o: t raffic s ignals, c losed c ircuit t elevision c ameras, T raffic M anagement Center (TMC), speed feedback signs, and emergency vehicle preemption system. The Transportation Services Division responsibilities include the implementation of the General Plan Circulation Element, the Active Transportation Plan, the Pedestrian Master Plan, the Local Road Safety Plan, and multi-modal transportation planning a nd d esign a ctivities w ithin t he C ity. A dministers p rograms a nd p rojects t o p romote s afe a nd e fficient movement of people and goods throughout the City. Manages the private contract for school crossing guards, in order to enhance the safety of elementary school students walking to and from school. The Transportation Division is organized into four sections.

Traffic P lanning – 30210
Responsible for the implementation of the Circulation Element of the City’s General Plan. Studies and implements short- and long-range transportation improvements in the Local Road Safety Plan and in accordance with the General Plan. Manages the City’s transportation model and residential parking permit program, including special event parking permits such as during the OC Fair. Reviews and monitors development projects. Administers the C ity’s T raffic I mpact F ee P rogram. C oordinates w ith o ther a gencies o n t ransportation r elated a ctivities a nd manages the City’s school crossing guard and bus shelter contracts.

Traffic O perations – 3 0241
Maintains, o perates, a nd u pdates t raffic s ignals, t raffic c ontrol d evices, a nd s treet l ights i n t he C ity. M anages t he City’s o verall t raffic fl ow/movement t hrough I ntelligent T ransportation S ystems (I TS) e lements i ncluding s ignal coordination, c losed c ircuit t elevision c ameras ( CCTV), v ideo d etection f or a ll u sers, a nd a c entralized T raffic Management Center (TMC). Designs and implements multi-modal traffic operations improvements such as radar speed f eedback s igns, e mergency v ehicle p reemption d evices, t raffic s ignal t iming, a nd e nhanced p edestrian crossing improvements.

Active Transportation Program – 30225
Responsible for the implementation of the City’s Active Transportation Plan component of the City’s Circulation Element and the Pedestrian Master Plan. Proactively address bikeway and pedestrian concerns, bicycle/pedestrian network connectivity and infrastructure maintenance requests. Plan, design, and construct bicycle and pedestrian facility improvements, installation of new bicycle racks, and complete street solutions, where applicable. Deliver education and outreach campaigns focused on bicycle skills and safe travel behaviors.

Residential Permit Parking – 30244
Administers the revised Residential Permit Parking program with updated program policies, implements integration of new parking technologies, and manages public outreach and education campaigns. Manages the evaluation of new residential permit parking requests and processing of permit requests. 197City of Costa Mesa, California
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Maintenance Services – 19500
The Maintenance Services Division is responsible for the care, maintenance, repair, and alteration of the City’s municipal f acilities. T his a lso i ncludes t he m aintenance o f p arks a nd p arkways, t rees, t raffic s igns a nd m arkings, street s weeping, s torm w ater s ystems, g raffiti a batement a nd r oadways. T he M aintenance S ervices D ivision i s structured in eight programs l isted below:

Maintenance Services Administration – 50001
Provides overall direction, coordination, and support to the maintenance sections operational and administrative activities and functions. Provides staff support to the Parks, Arts and Community Services Commission.

Fairview Park – 20115
Administers design and construction of Capital Improvement Program (CIP) projects aimed at implementing the Fairview Park Master Plan. Coordinates construction activities and projects with the Fairview Park Administrator and regulatory agencies.

Street Cleaning – 20120
Sweeps and cleans approximately 850 miles of residential, commercial and arterial roadway lanes in the City.

Graffiti A batement – 2 0130
Removes g raffiti f rom t he p ublic r ight-of-way, p ublic p arks, C ity-owned f acilities, a nd o n p rivate s tructures w here graffiti i s v isible f rom t he p ublic r ight-of-way. P ressure w ashes c ity p laygrounds, b us s tops, s idewalks a nd c ity facilities.

Street Maintenance – 30111
Maintains approximately 525 lane miles of streets, 15 miles of City alleys, and miscellaneous easements.

Storm Drain Maintenance – 30121
Maintains the City’s storm drain system and 1,165 catch basins.

Signs And Markings – 30243
Installs and maintains all street and traffic signage and pavement markings in the City.

Park, Parkway And Median Maintenance – 40111
Maintains the City’s 31 parks, including one dog park and one skate park that are located within TeWinkle Park, two s ports c omplexes ( Jack H ammett a nd T eWinkle A thletic C omplex), t wo s ports fi elds ( Luke D avis - c ombo baseball/softball/soccer and Balearic Soccer), approximately 14 acres of landscape medians, and 23,776 trees.

Administers the City’s landscape maintenance and tree maintenance contracts.

Proposed Budget for
Fiscal Year 2026-2027
198 City of Costa Mesa, California 246
Fiscal Year 2025-2026 Accomplishments
Public Works Administration & General S ervices D ivision:
■ Created a webpage that provides a timeline and status of all CIP-related projects semi-annually to the public, including grant funded projects with deadlines.
■ Successfully executed amendment No. 1 to the franchise waste hauler agreements. ■ Continued to implement SB1383 requirements including citywide organics program roll-out, procurement/ purchasing requirements, edible food program, education/ outreach, inspection & monitoring among others.

Identify tools and resources to comply with the State mandate. ■ Transitioned contractor Self-Haul Permits to TESSA.
■ Established new contract for waste disposal services at City Facilities. ■ Transitioned public right-of-way dumpster permits to TESSA. ■ Distributed 520 bags of compost during the annual Earth Day event. ■ Processed 938 Construction & Demolition inspections and 255 Contractor Self-Haul Permit Applications. ■ Substantial completion of design for Fire Station # 2. ■ Substantial completion of Fire Station # 4 Training Tower and Facility Improvement construction. ■ Substantial completion of Lions Park Café construction. ■ Successfully completed and remodeled a few of the buildings for the Snoopy Holiday event at City Hall. ■ Treated the Balearic Community Center for termites.
■ Tented the Adobe (Diego) House for termites.
■ Installed new commercial toilets at the Costa Mesa Bridge Shelter. ■ Replaced fire sprinkler heads at the Costa Mesa Bridge Shelter and the PD Warehouse. ■ Replaced and upgraded lights and ceiling tiles in the Information Technology Computer Operations area. ■ Completed window cleaning at various City facilities. ■ Replaced and upgraded the roof access at the Costa Mesa Bridge Shelter. ■ Building Maintenance added 2 new staff, 1 full-time and 1 part-time employees. ■ Installed EV chargers for various City facilities.
■ Installed downpour for the Police Department warehouse. ■ Procured vehicles as authorized in the Fiscal Year 2025-2026 budget. ■ Identified v ehicles a nd e quipment t hat a re p ast t heir r ecommended s ervice l ife a nd d eveloped a p lan t o modernize the City’s fleet.
■ Fleet Services awarded City Partner of the Year award from the Costa Mesa Fire Department. ■ Mechanics attended BMW motorcycle training to support specialized fleet maintenance. ■ Warehouse staff updated and standardized the supply catalog for Citywide use. ■ Fuel operations for the city were successfully transitioned to the Warehouse. ■ Completed design of Communications tenant improvement plans. ■ Completed flooring, interior paint and tenant improvements at the Police Department. ■ Finalized a comprehensive facility condition assessment for all City facilities. ■ Relocated Police Department evidence and storage to 3175 Airway facility.

Engineering Di vision:
■ Annual Citywide Parkway, Street Rehabilitation, and Slurry Seal Project - Completed design and construction of several pavement rehabilitation projects to maintain high Pavement Condition Index (PCI). ■ Completed citywide sidewalk improvements, including sidewalk rehabilitation at the City’s parks. ■ Completed parking lot improvements and expansion at the Police Department parking lot. ■ Completed retaining wall construction along South Coast Drive. 199City of Costa Mesa, California
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■ Completed Freeway Maintenance Agreements with Caltrans for the I-405 freeway widening and secured a Memorandum o f U nderstanding ( MOU) t o r eceive n early $ 2 m illion i n f unding f rom O CTA / C altrans t o i mprove affected City streets near the I-405.
■ Completed construction and installation of the Greenville-Banning Channel Hydrodynamic Separator project. ■ Construction completed for the City Hall basement training room and offices. ■ Design completed for the Rule 20A and Rule 20B utility undergrounding project along Adams Avenue between Mesa Verde Drive and Albatross Drive / Shantar Drive.
■ Design completed for Costa Mesa skate park expansion and construction to begin in 2026. ■ Design completed for Shalimar Park improvements and construction to begin in 2026. ■ Design completed for Ketchum-Libolt Park improvements and construction began in late 2025. ■ Design completed and construction started in 2025 for the TeWinkle Park Lakes rehabilitation and improvement project.
■ Completed the Drainage Fee Study for the Storm Drain System Master Plan with Council approval scheduled in 2026.

Transportation Services Division:
■ Started design for Fairview Road Mobility Improvements (Fair Drive to Adams Avenue). ■ Completed design and began construction of Adams Avenue Bicycle Facility (Harbor Boulevard to Fairview Road).
■ Completed substantial construction of Fairview Road Active Transportation Improvements (Fair Drive to Newport Boulevard).
■ Completed remaining installation of Class IV cycle track on Placentia Avenue from Estancia High School to West 19th Street.
■ Completed Bicycle Safety Education Program workshops, bike rodeos, and trainings. ■ Delivered fi rst y ear o f L et’s G o C osta M esa O n-demand R ide S hare S ervice a nd u tilized a dditional g rant f unding to secure 4th fleet vehicle.
■ Installed 14 bike racks at City facilities and in commercial corridors. ■ Organized Walk to School and Bike to School events in October and May, respectively, with 14 participating schools.
■ Secured grants for Fair Drive for All Project (Newport Boulevard to Harbor Boulevard) and Adams Multipurpose Project (Royal Palm Drive to Santa Ana River).
■ Started the Safe Routes to School Action Plan study including 3 workshops and walk audits at all participating schools.
■ Issued over 1,700 annual permits and managed over 4,600 permits for OC Fair Temporary Parking. ■ Addressed nearly 200 citizen request items related to traffic and parking concerns. ■ Provided traffic signal and electrical maintenance to 131 traffic signals.

Maintenance Services Division :
■ Provided landscape maintenance of 463 acres of City parks, fields, parkways, and medians. ■ Managed approximately 24,000 City-owned trees.
■ Renovated 30 acres of sports fields and turf areas.
■ Completed a Citywide Tree Canopy Assessment.
■ Completed a Citywide Park and Playground Assessment.
■ Hosted the City’s annual Arbor Day Tree Planting Event planting 60 trees citywide.. ■ Planted 270 trees.
■ Completed the renovation of Brentwood Park including the replacement of the playground equipment, picnic shelter and lighting.
■ Completed infield renovations at Davis Field.
■ Abated graffiti within 24 hours of notification or discovery.

Proposed Budget for
Fiscal Year 2026-2027
200 City of Costa Mesa, California 248
■ Responded to 6,933 calls for service related to graffiti removal. ■ Repaired potholes within 24 hours of notification or discovery. ■ Removed 7,324 bulky items from the City’s right-of-ways, including furniture, shopping carts, appliances and over 679 mattresses were retrieved and recycled.
■ Cleaned and maintained 1,100 catch basins and drainage facilities.

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Fiscal Year 2026-2027 Goals
General Services Division:
■ Follow through the implementation of SB1383 requirements including citywide organics program roll-out, procurement/ purchasing requirements, edible food program, education/outreach, inspection & monitoring among others. Identify tools and resources to comply with the State mandate. ■ Establish citywide community compost program to aid in SB 1383 procurement compliance. ■ Establish new solid waste service agreements for Bulky Item collection. ■ Execute new County proposed Waste Infrastructure System Enterprise (WISE) agreements with franchise haulers.
■ In collaboration with Finance Department, implement SB 1383 compliant Environmentally Preferable Purchasing Policy (EPP).
■ Proceed with roll-out of organics and mixed recycling at additional city facilities. ■ Update dumpster enclosure standards in conjunction with other internal departments. ■ Secure grant funding from CalRecycle to support the City’s effort to implement SB1383 and Beverage Container Recycling.
■ Complete Norma Hertzog Community Center Roof Replacement. ■ Install Fire Station 3 Above Ground Fuel Storage Tank. ■ Complete City Hall Chiller and Generator Replacement. ■ Procure vehicles as authorized in the Fiscal Year 2026-2027 budget. ■ Evaluate Fleet Services shop’s needs, improvements, and upgrades. ■ Upgrade and improve AssetWorks program for fuel monitoring and billing. ■ Repair the Police Department Roof and resolve the short-circuiting issue due to leaks. ■ Replace the gutters and downspout at the Downtown Recreation Center. ■ Upgrade the current master key system at City Hall.
■ Replace the current Exhaust Fans for the Restrooms at City Hall.

Engineering Di vision:
■ Continue implementation of the Citywide Parkway, Street Rehabilitation,and Slurry Seal Improvements Project – Design and construction to maintain the City’s high PCI. ■ Complete the next construction phase of the Citywide Alley improvement project. ■ Move forward with the Citywide Priority Sidewalk Repair, Missing Sidewalk Links, and Parkway and Medians Improvement projects.
■ Continue implementing the Community Workforce Agreement (CWA) provisions on select projects. ■ Begin construction of the Newport Boulevard improvements from Bristol Street to 19th Street. ■ Begin Rule 20A and 20B construction of Southern California Edison’s (SCE’s) utility undergrounding along Adams Avenue between Mesa Verde Drive to Albatross Drive / Shantar Drive. ■ Begin and complete construction of the Costa Mesa Skate Park expansion project. ■ Begin and complete construction improvements for the following parks:
● Shalimar Park
● Ketchum-Libolt Park
■ Complete construction for the TeWinkle Park Lakes Repair and Rehabilitation Project. ■ Begin construction of the Fairview Park Bluff Stabilization and Restoration project. ■ Complete the design for the Fairview Park Wetlands Restoration project. ■ Approve the Fee Study and implement the Storm Drain Master Plan Update. ■ Continue with the review and issuance of encroachment permits. ■ Continue with development reviews and issuance of conditions. ■ Continue with right-of-way reviews, easements, and vacations.

Proposed Budget for
Fiscal Year 2026-2027
202 City of Costa Mesa, California 250
Transportation Services Division:
■ Continue o perations a nd m aintenance o f s ignal t iming i mprovements o f m ulti-modal t raffic s ignal s ynchronization projects along Baker Street, Placentia Avenue, Victoria Street, and West 19th Street. ■ Advance d esign o f m ulti-modal t raffic s ignal s ynchronization p roject a long B ristol S treet i n c ollaboration w ith City of Santa Ana (project lead) and City of Newport Beach. ■ Complete new traffic signal at the intersection of Fairview Road and Belfast Avenue. ■ Complete c onstruction o f t he S ignal M odernization f or S ystemic S afety I mprovements a t 1 28 t raffic s ignals citywide.
■ Continue operating the Let’s Go Costa Mesa program serving mobility needs in southern portion of City. ■ Initiate design of mobility and safety improvements for the Fair Drive for All Project between Harbor Boulevard and Newport Boulevard.
■ Initiate design of mobility and safety improvements along Junipero Drive between Presidio Drive and Arlington Drive.
■ Complete design of the Adams Avenue Active Transportation Improvements Multipurpose Trails project between the Santa Ana River to Royal Palm Drive.
■ Advance construction of parking and mobility improvements on College Avenue between Victoria Street and Wilson Street.
■ Advance towards construction of pedestrian and bicycle improvements at the Placentia Avenue at Center Street Intersection.
■ Complete construction of Fairview Road Active Transportation Improvements between Adams Avenue to Fair Drive project.
■ Complete construction of mobility and safety improvements along Adams Avenue between Harbor Boulevard and Fairview Road.
■ Continue installation of bicycle racks at City facilities and in commercial corridors. ■ Complete a c omprehensive u pdate o f t he C ity’s T raffic I mpact F ee p rogram i n c ollaboration w ith t he C ity’s Traffic Impact F ee Ad Hoc Committee.
■ Complete Safe Routes to School (SRTS) Action Plan with Safe Streets and Roads for All (SS4A) grant funding. ■ Initiate update to Local Road Safety Plan (LRSP) to maintain grant funding eligibility. ■ Initiate the Pedestrian Safety Festival project funded by the USDOT Safe Roads and Streets for All (SS4A) grant.

Maintenance S ervices Di vision:
■ Provide landscape maintenance of 463 acres of City parks, fields, parkways, and medians. ■ Manage approximately 24,000 City-owned trees; and continue to be designated as ‘Tree City USA”. ■ Complete the annual trimming of 2,200 palms and 3,000 - 4,000 trees. ■ Plant 200 - 300 new and replacement trees.
■ Implement a tree planting and maintenance strategy based on recommendations from the completed City-wide tree canopy assessment.
■ Host the City’s annual Arbor Day Tree Planting Event. ■ Resurface sports courts at various parks.
■ Replace fading City Street name signs (20% of the City). ■ Inspect 20% of City maintained sidewalks.
■ Replace damaged lighting on the Harbor Portion of the Joann Bike Trial and Cornerstone Bike Trail with new solar powered LED lighting.
■ Renovate 30 acres of sports fi eld infield and turf area. ■ Abate graffiti within 24 hours of notification or discovery. ■ Repair potholes within 24 hours of notification or discovery. ■ Complete 70,000 feet of residential red curb painting. ■ Re-stripe crosswalks at all schools.
■ Continue the installation of bicycle racks at City facilities and in commercial corridors. 203City of Costa Mesa, California
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Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
1 Maintain a webpage that provides a timeline and status of all CIP-related projects to the public, including grant funded projects with deadlines.
;
TRUE
2 Provide proactive communication internally and to the public to improve response times for all calls, emails, and inquiries. ;
TRUE
3 Provide an update to the City Manager on SB 1383 compliance ; TRUE
4 Renew agreement to provide Bulky Item collection citywide ; TRUE
5 Execute County Waste Infrastructure System Enhancements agreement
;
TRUE
6 Citywide Street Improvements - Strive to consistently maintain and upgrade the City’s street infrastructure in order to maintain or improve a PCI of 85.
;
TRUE
7 Implement the City’s Community Workforce Agreement (CWA) for select projects.
;
TRUE
;
TRUE
8 Citywide Storm Drain System / Master Plan - Complete the Storm drain master plan, fund for future improvements, update the fee structure, and upgrade the City’s storm drain system. ;
TRUE
9 Maintain consultant services to meet National Pollutant Discharge Elimination System (NPDES) requirements.
;
TRUE
10 Priority Sidewalks - Work towards the goal of repairing all of the City’s damaged sidewalks, curbs, and gutters
;
TRUE
11 Complete new missing sidewalks and complete networks for safe pedestrian travel.
;
TRUE
12 Citywide Alleys - Complete the repair and reconstruction of all the City’s public alleys
;
TRUE
13 Complete design, bid opening, and select contractor to begin construction for the Newport Blvd. (Bristol St. to 19th St.) Rehabilitation and Active Transportation Project.
;
TRUE
14 Coordinate design with SCE to begin construction of Adams Avenue Utility Undergrounding.
;
TRUE
15 Ketchum-Libolt P ark – Finish construction f or p ark expansion. ; TRUE
16 Shalimar Park – Finish construction for park expansion. ; TRUE
17 TeWinkle Park– Finish construction for lake repairs and construction.
;
TRUE
18 Costa Mesa S kate P ark – Begin a nd fi nish construction o f t he skate park. ;
TRUE
19 Begin construction of the Fairview Park Bluff Stabilization Restoration Project.
;
TRUE
;
TRUE
20 Complete design for the Fairview Park Wetlands Restoration Project.
;
TRUE
;
TRUE
21 Brentwood Park Improvements – Finish installation of the new playground equipment and walkways. ;
TRUE
Goals and Objectives
The goals and objectives of the Public Works Department were developed in alignment with the City Council’s priorities.

Proposed Budget for
Fiscal Year 2026-2027
204 City of Costa Mesa, California 252
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
Quality
Recruitment
Fiscally
Sustainable
Safe
Community
Environmental
Sustainability
Housing
Commitments

GOALS AND OBJECTIVES
22 Begin update to the City’s Local Road Safety Plan. ; TRUE
23 Complete the Safe Routes to School Action Plan. ;
TRUE
24 Work towards vehicle miles traveled (VMT) reduction and mode shift in the City. ;
TRUE
;
TRUE
25 Works towards a 10/15 minute walkable city. ;
TRUE
;
TRUE
26 Complete design of the Adams Avenue Active Transportation Improvements - Multipurpose Trails project.
;
TRUE
;
TRUE
27 Complete design of the Fairview Road (Adams Ave. to Fair Dr.) Active Transportation Improvements Project
;
TRUE
;
TRUE
28 Begin design of the Fair Drive for All Project (Harbor Blvd. to Newport Blvd.)
;
TRUE
;
TRUE
29 Begin design of Junipero Drive (Arlington Dr. to Presidio Dr.) ; TRUE
;
TRUE
30 Complete design of the Adams Avenue Mobility Improvements (Santa Ana River to Royal Palm Drive).
;
TRUE
;
TRUE
31 Complete design of the Placentia Ave./Center St. Intersection Improvements.
;
TRUE
32 Begin c onstruction o f t he F airview Rd./Belfast A ve. Traffic Signal. ;
TRUE
33 Complete construction of Adams Avenue Bicycle Facility Project (Harbor Blvd. to Fairview Rd.).
;
TRUE
;
TRUE
34 Complete construction of Fairview Road (Fair Dr. to Newport Blvd.) Active Transportation Project.
;
TRUE
;
TRUE
35 Begin construction of the Signal Modernization for Systemic Safety Improvements project
;
TRUE
36 Implement the Facility Needs and Assessment Study for approximately 20 City-owned facilities.
;
TRUE
37 Begin Public Safety Emergency Communications Center
tenant improvements
;
TRUE
;
TRUE
38 Fire Station 4 – begin exploring bond funding Phase 2 tenant improvements to living quarters
;
TRUE
;
TRUE
39 Fire Station 2 – Begin reconstruction efforts by exploring bond funding and begin design and permits.
;
TRUE
;
TRUE
40 Completion of James Street rental units improvements ; TRUE
41 Norma Hertzog Community Center Roof Replacement ;
TRUE
42 Fire Station 3 Above Ground Fuel Storage Tank ;
TRUE
43 Coomplete City Hall Chiller Replacement ;
TRUE
;
TRUE
44 Complete City Hall Generator Replacement ;
TRUE
;
TRUE
45 Conduct ongoing communication and facility management with the Golf Course operator.
;
TRUE
46 Enhance the City’s Parkway Tree Planting Program to ensure a vibrant tree canopy cover throughout the City and map the City’s Urban Forest.
;
TRUE
47 Implement tree planting & maintenance based on
recommendations from the Tree Canopy Assessment.
;
TRUE
48 Conduct a sidewalk and bus shelter assessment to
complement the Facility and Parks needs assessments.
;
TRUE
49 Explore a dditional o pportunities f or r eplacing the C ity’s fl eet with alternative energy and electric vehicles. ;
TRUE
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Performance Measures/Workload Indicators:

Workload Indicators

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actuals Actual Estimated Estimated

CAPITAL IMPROVEMENT PROJECTS
Number of budgeted Capital Improvement Projects 51 47 23 35 Number of completed or active Capital Improvement
Projects 81 108 72 96
MAINTENANCE: BUILDING & EQUIPMENT
Number of facility rehabilitation projects completed 14 12 12 4 Number of facility work requests 1,450 2,000 1442 1430
Number of pieces of equipment maintained 383 383 383 360 MAINTENANCE: PARKS & LANDSCAPE
Number of trees planted 350 300 350 300
Acres o f C ity p arks and fi elds m aintained 463 463 463 463 MAINTENANCE: STREETS
Number of c alls for s ervice f or g raffiti 6,740 6,700 6700 6700 Numbers of bulky items removed from City right-of-way 6,000 7,500 7,000 7,000 Tons of asphalt applied annually by City forces 250 250 250 250 Number of lineal feet of red curb repainted 244,995 290,00 300,000 270,000 Number of crosswalks repainted/reapplied 25 25 30 40
Number of linear feet of lanes repainted 952,072 995,000 995,000 960,000 Number of linear feet of roadway rehabilitated 74,845 77,000 80,000 80,000 Number of t raffic and s treet signs m aintained 754* 750 800 800 Number of t raffic signals maintained 131 131 131 131 Number of R adar Speed S igns, Rapid F lashing/HAWK Beacons maintained 62 68 69 72

TRANSPORTATION SERVICES
Number of schools participating in Walk to School / Bike to School events 13 13 13 14
Linear feet of new and improved bicycle facilities 64,000 80,000 20,000 34,000 Number of t raffic control plans reviewed 641 750 750 750 Number of completed resident requests related to
transportation 146 150 175 175
WASTE
Tons of organic waste diversion (City & CMSD customers) 11,470 12,223 14,700 15,000 Tons of debris removed and diverted from the waterways 1,600 1,600 1,600 1,600

ENGINEERING SERVICES
Number of planning development reviews conducted 1,900 2,000 2,100 2,200 Number of building plan checks processed 190 200 215 250 Number of encroachments permits processed 900 950 1025 1200 *Increase due to funding being restored.

Proposed Budget for
Fiscal Year 2026-2027
206 City of Costa Mesa, California 254
Performance Measures

FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Estimated Estimated
Percent of budgeted building maintenance projects
completed 95% 95% 95% 95%
Pavement Condition Index (PCI) for street network 85 85 85 85 Number of trees grid trimmed 992 1378 2000 2000
Percent of Citywide sidewalk conditions assessed (5 Year Plan) N/A 20% 20% 20%
Percent o f t raffic control plans review on t ime N/A 95%* 95% 95% Percent of planning development reviews conducted on
time N/A 95%* 95% 95%
Percent of building plan checks processed on time N/A 95%* 95% 95% Percent of encroachment permits processed on time N/A 95%* 95% 95% *New goals not previously tracked in the Totally Electronic Self-Service Application (TESSA).

Customer Service Goal
Goal
Average response time to customers within 48 hours 95%

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Budget Narrative
The F iscal Y ear 2 026-27 b udget f or t he P ublic W orks D epartment i s $ 33.4 m illion, a n i ncrease o f $ 2.2 m illion, o r 7 percent compared to the adopted budget for Fiscal Year 2025-26. An attrition factor of $327,300 was applied in Fiscal Year 2024–25, this amount was recalculated and transferred to the Non -D epartmental budget beginning in Fiscal Year 2026–27. The department’s budget also includes several notable expenditure reallocations intended to more a ccurately a lign e xpenditure w ith r evenue s ources. T he G as T ax F und w ill p rovide $ 350,000 t o s upport t ree trimming services along medians and public right of ways. In addition, the Measure M2 Fairshare Fund (Fund 416) will offset a portion of the City’s traffic signal maintenance costs in the amount of $220,000.

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

PUBLIC WORKS DEPARTMENT BY FUNDING SOURCE

General Fund - 101 $ 2 3,101,963 $ 2 2,814,083 $ 2 2,553,603 $ 22 ,845,065 Disaster Fund - 150 - 5 3,413 - -
Gas Tax Fund - 201 7 22,852 2,560,339 2 ,439,323 2, 858,513 Air Q uality I mprovement F und - 2 03 7 16 7 41 1 6,000 16,000 Drainage Fees Fund - 209 5,237 - 102,340 1 68,339 Grants - State - 231 1 06,836 7, 782 - -
Capital Improvements Fund - 401 5 8,256 2,959 50,000 1 ,128,352 Golf Course Improvement Fund - 413 187,575 49,870 50,000 5 0,000 Measure “M2” Fairshare - 416 - - - 220,000
Equipment Replacement Fund - 601 4,959,214 4,971,441 5 ,953,599 6,090,648

Total Public Works Department $ 2 9,142,649 $ 30 ,460,629 $ 3 1,164,865 $ 3 3,376,918 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

PULIC WORKS DEPARTMENT BY PROGRAM
ADMINISTRATION - 19100

Administration - 50001
Salaries a nd B enefits $ 8 85,384 $ 9 79,166 $ 1 ,150,692 $ 1 ,000,030 Maintenance and Operations 1 ,095,630 1,062,815 1,028,086 1 ,027,586 Subtotal Administration $ 1,981,014 $ 2,041,981 $ 2,178,778 $ 2,027,616

Recycling - 20230
Salaries a nd B enefits $ 6 2,015 $ 1 63,852 $ - $ 1 86,569 Maintenance and Operations $ 3 73,126.98 $ 3 00,713 $ 2 97, 80 0 2 97,800 Subtotal Recycling $ 435,142 $ 464,565 $ 2 97,800 $ 484,369

Emergency Services - 51040
Maintenance and Operations 1,000 - - -
Subtotal Emergency Services $ 1,000 $ - $ - $ -

ENGINEERING - 19200
Administration - 50001
Salaries a nd B enefits $ 1 8,197 $ 1 1,097 $ - $ - Subtotal Administration $ 18,197 $ 11,097 $ - $ -

Proposed Budget for
Fiscal Year 2026-2027
208 City of Costa Mesa, California 256
Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
ENGINEERING - 19200 (Continued)
Water Quality - 20510
Salaries a nd B enefits $ 9 6,817 $ 9 7,168 $ 1 03,490 $ 1 13,555 Maintenance and Operations 2 19,042 278,112 547,400 42 6,800 Subtotal Water Quality $ 315,860 $ 375,280 $ 650,890 $ 5 40,355

Street Improvements - 30112
Salaries a nd B enefits $ 6 17, 3 4 3 $ 1 ,04 8,811 $ 1 ,681,616 $ 1 ,276,154 Maintenance and Operations 19,381 2 4,001 2 0,100 19,400 Fixed Assets 900 600 900 9 00
Subtotal Street Improvements $ 637,623 $ 1,073,412 $ 1,702,616 $ 1,296,454

Storm Drain Improvements - 30122
Salaries a nd B enefits $ 13 2,418 $ 2 24,490 $ 1 86,310 $ 2 19,839 Maintenance and Operations 3 54 936 3 ,200 3,200 Fixed Assets 1,000 - 1,000 1 ,000
Subtotal Storm Drain Improvements $ 13 3,772 $ 2 25,426 $ 190,510 $ 224,039

Public Works - Development - 30310
Salaries a nd B enefits $ 54 5,542 $ 6 91,340 $ 6 28,081 $ 8 85,255 Maintenance and Operations 12,445 4 2,993 8 00 800 Subtotal Public Works - Development $ 557,987 $ 734,334 $ 6 28,881 $ 886,055

Public Works - Real Property - 30320
Salaries a nd B enefits $ - $ - $ 1 ,000 $ 1 ,000 Maintenance and Operations 4 83 5 79 70 0 1 50 Subtotal Public Works - Real Property $ 4 83 $ 579 $ 1,700 $ 1,150

Park Development - 40112
Salaries a nd B enefits $ 13 6,460 $ 1 54,251 $ 1 ,140 $ 2 36,727 Maintenance and Operations 1 88,947 5 1,374 51,700 51,015 Subtotal Park Development $ 325,407 $ 205,625 $ 52,840 $ 2 87,742

Construction Management - 50002
Salaries a nd B enefits $ 1 ,584,609 $ 1 ,963,609 $ 1 ,945,206 $ 2 ,613,936 Maintenance and Operations 2 1,007 2 1,070 89,000 88,035 Fixed Assets 1,000 780 1,000 1 ,000
Subtotal Construction Management $ 1 ,606,616 $ 1,985,459 $ 2,035,206 $ 2,702,971

TRANSPORTATION SERVICES - 19300
Traffic Planning - 30210
Salaries a nd B enefits $ 5 23,153 $ 4 63,816 $ 4 80,403 $ 6 54,064 Maintenance and Operations 80,958 53,672 61 ,850 61,850 Subtotal Traffic Planning $ 604,111 $ 517,487 $ 542,253 $ 715,914

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Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
Active Transportation Improvement - 30225
Salaries a nd B enefits $ 4 27,905 $ 4 08,079 $ 4 63,067 $ 4 43,892 Maintenance and Operations 31,400 2 9,870 4 1,900 4 1,900 Subtotal Active Transportation Imp. $ 459,305 $ 437,949 $ 504,967 $ 4 85,792

Traffic Operations - 30241
Salaries a nd B enefits $ 3 65,227 $ 3 10,700 $ 3 56,878 $ 4 71,195 Maintenance and Operations 2,345,187 2 ,457,603 1 ,963,769 1,963,769 Subtotal Traffic Operations $ 2,710,415 $ 2,768,303 $ 2,320,647 $ 2,434,964

Residential Permit Parking - 30244
Maintenance and Operations 56,731 - 50,000 5 0,000 Subtotal Residential Permit Parking $ 5 6,731 $ - $ 50,000 $ 50,000

MAINTENANCE SERVICES - 19500

Administration - 50001
Salaries a nd B enefits $ 5 30,057 $ 7 21,400 $ 4 17,939 $ 7 99,682 Maintenance and Operations 18,789 4,762 5,400 5 ,400 Subtotal Administration $ 548,846 $ 726,162 $ 423,339 $ 805,082

Fairview Park - 20115
Salaries a nd B enefits $ 1 5,868 $ 2 ,789 $ - $ - Maintenance and Operations - 4 ,808 8 ,000 8,000 Subtotal Fairview Park $ 15,868 $ 7,597 $ 8,000 $ 8,000

Street Cleaning - 20120
Salaries a nd B enefits $ 8 2,406 $ 8 2,497 $ 4 4,950 $ 8 5,054 Maintenance and Operations 1 ,467,790 1 ,467,790 1 ,467,790 1 ,467,790 Subtotal Street Cleaning $ 1,550,197 $ 1,550,287 $ 1,512,740 $ 1,552,844

Graffiti Abatement - 20130
Salaries a nd B enefits $ 5 53,791 $ 5 03,981 $ 5 12,447 $ 5 50,372 Maintenance and Operations 7 5,771 72,903 5 2,400 5 2,400 Fixed Assets 1 ,640 1 ,140 - -
Subtotal Graffiti Abatement $ 631,201 $ 578,024 $ 564,847 $ 602,772

Street Maintenance - 30111
Salaries a nd B enefits $ 6 01,135 $ 6 49,257 $ 47 1,431 $ 9 22,987 Maintenance and Operations 3 97,038 380,362 424,600 4 23,600 Subtotal Street Maintenance $ 998,174 $ 1,029,619 $ 896,031 $ 1,346,587

Storm Drain Maintenance - 30121
Salaries a nd B enefits $ 3 39,483 $ 3 65,380 $ 14 8,390 $ 3 62,149 Maintenance and Operations 3,495 1,657 1 ,600 1,600 Subtotal Storm Drain Maintenance $ 342,978 $ 3 67,038 $ 149,990 $ 363,749

Proposed Budget for
Fiscal Year 2026-2027
210 City of Costa Mesa, California 258
Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

MAINTENANCE SERVICES - 19500 (Continued )
Signs and Markings - 30243
Salaries a nd B enefits $ 5 38,624 $ 5 21,803 $ 67 7,989 $ 7 55,277 Maintenance and Operations 197,185 1 89,536 2 01,056 2 01,056 Subtotal Signs and Markings $ 7 35,809 $ 711,339 $ 879,045 $ 956,333

Park Maintenance - 40111
Salaries a nd B enefits $ 8 98,493 $ 6 32,559 $ 1 ,078,270 $ 8 75,723 Maintenance and Operations 4,942,120 5,050,581 4 ,859,100 4,859,100 Subtotal Park Maintenance $ 5,840,613 $ 5,683,140 $ 5,937,370 $ 5,734,823

Building Maintenance - 50910
Salaries a nd B enefits $ 1 ,539,341 $ 1 ,566,658 $ 1 ,480,877 $ 1 ,733,512 Maintenance and Operations 2,009,262 2,092,081 1 ,626,360 1 ,525,360 Fixed Assets - 1 ,800 5,000 5 ,000
Subtotal Building Maintenance $ 3,548,603 $ 3,660,539 $ 3,112,237 $ 3, 263,872 MAINTENANCE SERVICES - 19500 (Continued)
Equipment Maintenance - 50920
Salaries a nd B enefits $ 1 ,210,031 $ 1 ,198,071 $ 1 , 47 7,035 $ 1 ,428,283 Maintenance and Operations 3,105,782 3,728,480 3,314,918 3,321,718 Fixed Assets 719,981 1 99,756 1,471,000 1 ,464,200 Subtotal Equipment Maintenance $ 5,035,793 $ 5,126,307 $ 6,262,953 $ 6,214,201

Warehouse - 50925
Salaries a nd B enefits $ - $ - $ - $ 3 88,434 Maintenance and Operations - - - $ 2 ,800
Subtotal Warehouse $ - $ - $ - $ 391,234

Operations - 51010 93
Maintenance and Operations 93 - - -
Subtotal Operations $ 9 3 $ - $ - $ -

TOTAL PUBLIC WORKS DEPARTMENT
Salaries a nd B enefits $ 1 1,74 4,853 $ 1 2,913,806 $ 1 3,565,636 $ 1 6,003,689 Maintenance and Operations 16,673,276 1 7,342,748 16,120,329 1 5,901,129 Fixed Assets 7 24,521 204,075 1 ,478,900 1,472,100 Total Public Works Department $ 29,142,649 $ 30,460,629 $ 31,164,865 $ 33,376,918

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From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PUBLIC WORKS DEPARTMENT BY ACCOUNT: ALL FUNDS

SALARIES AND BENEFITS
Salaries and Wages $ - $ - $ (3 27,300) $ - Regular Salaries - Non-Sworn 6,785,336 7,493,617 8,408,127 10 ,210,814 Regular Salaries - Part-Time 2 83,250 413,235 358,818 3 58,818 Overtime 185,015 2 08,530 85 ,200 85 ,200
Accrual Payoff - Excess Max. 5 ,391 5,532 3 ,200 3 ,200 Vacation/Comp. Time Cash Out 41,314 8 4,379 40,700 40,700 Holiday Allowance 30,532 30,896 1 5,583 14 ,402 Separation Pay-Off 95,326 6 2,134 10 ,800 10 ,800 Other Compensation 111,124 108,734 136,573 1 19,800 Cafeteria Plan 1 ,369,434 1 ,442,943 1 ,604,536 1 ,633,536 Medicare 1 17,510 12 9,199 13 2,014 150,485 Retirement 2,707,420 2 ,921,467 3,078,485 3 ,357,363 Executive Prof Development 6 ,282 6,202 1 2,000 11,670 Auto Allowance 6,919 6,938 6,900 6,900
Subtotal Salaries & Benefits $ 11,744,853 $ 12,913,806 $ 13,563,899 $ 1 6,003,689

MAINTENANCE AND OPERATIONS
Stationery a nd O ffice $ 13 ,356 $ 13 ,536 $ 7, 70 0 $ 8 ,200 Multi-Media, Promos, Subscrpt. 5 ,951 7,174 6,200 6 ,200 Small Tools and Equipment 7 2,505 61,486 36,100 36,100 Uniforms and Clothing 24,724 30,492 1 6,800 2 2,800 Safety and Health 4 ,092 2,933 3, 300 3 ,800 Maintenance and Construction 1,086,354 853,168 654,900 6 54,900 Agriculture 10 1,227 6 3,378 9 7,000 97,000 Fuel 7 04,695 8 36,924 701,400 701,400
Electricity - Buildings & Fac. 739,149 7 59,341 4 84,250 4 84,250 Electricity - Power 33 0,669 309,302 25 5,200 255,200 Electricity - Street Lights 1 ,237,221 1 ,272,173 1 ,000,000 1 ,000,000 Gas 4 0,363 53,420 25,000 25,000
Water - Domestic 47,228 73,119 57,000 57,000 Water - Parks and Parkways 8 05,573 1,004,422 859,100 859,100 Waste Disposal 2 69,131 2 54,264 25 8,800 258,800 Janitorial and Housekeeping 255,350 2 75,030 34 5,900 345,900 Legal Advertising/Filing Fees 1 89,816 2 44,453 280,100 280,100 Telephone/Radio/Communications 9 4,138 8 1,590 62,500 62,500 Business Meetings 3,897 4,502 400 400
Mileage Reimbursement - 14 - -
Dues and Memberships 3 ,591 3,943 4 ,880 4 ,880 Professional Development 2 8,671 2 2,949 13 ,470 7, 470 Buildings and Structures 3 76,007 2 31,160 3 00,000 3 00,000 Landscaping and Sprinklers 3,391,365 3 ,495,442 3,470,000 3,470,000 Automotive Equipment 462,452 584,955 464,728 464,728 Office E quipment 4 ,979 1,680 1 ,900 2,200 Other Equipment 1,004,738 1,159,010 871,410 7 70,910 Streets, Alleys and Sidewalks 1 ,726,929 1,753,245 1 ,812,790 1 ,812,790 Consulting 572,956 570,902 8 39,269 719,269 Proposed Budget for
Fiscal Year 2026-2027
212 City of Costa Mesa, California 260
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PUBLIC WORKS DEPARTMENT BY ACCOUNT: ALL FUNDS
Engineering and Architectural 2 ,750 - 1 8,564 1 8,564 Public Safety 56,731 1 ,674 5 0,000 50,000
Sanitation 46 ,000 - - -
Principal Payments ( 231,542) - 2 88,983 288,983 Interest Payments 5 5,041 78,332 88 ,543 88,543 External Rent 8 ,890 8 ,905 14 ,900 14,900
Depreciation 1 ,532,452 1,632,720 1,275,000 1 ,275,000 Internal Rent Central Services 4,479 3 ,804 4,564 4,564 Internal Rent Postage 5,212 4 ,056 3 ,432 3,432 Internal Rent - Maintenance 59,500 5 9,500 59,500 59,500 Internal Rent - Repl Cost 269,856 2 69,856 269,856 2 69,856 Internal Rent - Fuel 1 10,978 86,700 8 6,700 8 6,700 Internal Rent Genl Liability 699,861 6 99,861 699,861 699,861 Internal Rent Workers’ Comp 2 43,571 2 43,571 2 43,571 243,571 Internal Rent Unemployment 9, 658 9,658 9, 658 9, 658 Taxes and Assessments 179,040 2 15,551 7 6,800 76,800 Other Costs 26 9 3 23 3 00 300
Emergency Protective Measure 23,403 4 ,229 - - Subtotal Maintenance & Operations $ 16,673,276 $ 17,342,748 $ 16,120,329 $ 15,901,129

FIXED ASSETS
Automotive Equipment 6 76,289 1 37,258 1 ,441,000 1 ,441,000 Other Equipment 1 5,453 7, 982 3 7,900 3 1,100 Loss on Disposal of Assets 3 2,779 5 8,835 - - Subtotal Fixed Assets $ 724,521 $ 204,075 $ 1,478,900 $ 1,472,100

TOTAL PUBLIC WORKS DEPARTMENT $ 29,142,649 $ 30,460,629 $ 31,163,128 $ 33,376,918 213City of Costa Mesa, California
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261
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PUBLIC WORKS DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY
Salaries and Benefits
Salaries and Wages $ - $ - $ (3 27,300) $ - Regular Salaries - Non-Sworn $ 5 ,645,202 $ 6 ,138,771 $ 7, 126, 867 $ 7 ,652,073 Regular Salaries - Part-Time 280,332 412,819 314,189 314,189 Overtime 1 58,286 1 74,549 6 8,500 6 8,500
Accrual Payoff - Excess Max. 5 ,391 5 ,532 3,200 3 ,200 Vacation/Comp. Time Cash Out 38,285 79,080 39,700 3 9,700 Holiday Allowance 24,694 2 4,703 14 ,402 14,402 Separation Pay-Off 77,483 62,134 10 ,400 10 ,400 Other Compensation 1 03,521 97,066 118,855 109,958 Cafeteria Plan 1,130,549 1 ,188,941 1,365,262 1 ,429,236 Medicare 99,012 1 07,919 1 10,417 127,467
Retirement 2 ,291,308 2,460,841 2,625,180 2,853,238 Executive Prof Development 6 ,282 5 ,750 10,900 1 1,670 Auto Allowance 6 ,919 6 ,938 6 ,900 6 ,900
Subtotal Salaries & Benefits $ 9,867,265 $ 10,765,043 $ 11,487,472 $ 12,640,934

Maintenance and Operations
Stationery a nd O ffice $ 1 2,901 $ 1 1,965 $ 7, 20 0 $ 7, 20 0 Multi-Media, Promos, Subscrpt. 4 ,451 2 ,075 4, 400 4, 400 Small Tools and Equipment 72 ,127 4 9,245 2 4,100 2 4,100 Uniforms and Clothing 19,050 23 ,068 1 2,800 1 2,800 Safety and Health 3,950 2 ,933 2,800 2,800
Maintenance and Construction 4 13,591 340,641 2 65,900 2 65,900 Agriculture 10 1,227 63,378 9 7,000 9 7,000 Electricity - Buildings & Fac. 739,149 759,341 484,250 484,250 Electricity - Power 330,669 3 09,302 25 5,200 25 5,200 Electricity - Street Lights 1,237,221 1 ,272,173 1,000,000 1,000,000 Gas 4 0,363 5 3,420 2 5,000 25,000
Water - Domestic 47,228 73,119 5 7,000 57,000 Water - Parks and Parkways 805,573 1 ,004,422 8 59,100 859,100 Waste Disposal 2 30,644 25 2,554 2 57,800 2 57,800 Janitorial and Housekeeping 254,599 274,250 3 44,000 3 44,000 Legal Advertising/Filing Fees 1 89,100 2 43,712 264,100 198,100 Telephone/Radio/Communications 9 4,138 81,590 6 2,500 6 2,500 Business Meetings 3 ,897 4 ,502 4 00 400
Mileage Reimbursement - 14 - -
Dues and Memberships 3 ,591 3 ,943 4,880 4 ,880 Professional Development 2 0,916 1 7,569 1 2,370 6 ,370 Buildings and Structures 3 42,327 161,596 200,000 200,000 Landscaping and Sprinklers 3 ,391,365 3,454,286 3,350,000 3,000,000 Office E quipment 4 ,594 1,266 1 ,800 1,800 Other Equipment 9 95,215 1 ,158,510 862,410 542,410 Streets, Alleys and Sidewalks 1,726,929 285,455 3 71,610 371,610

Proposed Budget for
Fiscal Year 2026-2027
214 City of Costa Mesa, California 262
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
PUBLIC WORKS DEPARTMENT BY ACCOUNT: GENERAL FUND ONLY
Maintenance and Operations (Continued)
Consulting 549,031 560,542 769,269 6 49,269 Engineering and Architectural 2,750 - 8 ,500 8,500 External Rent 8 ,890 8,905 14 ,900 14 ,900
Internal Rent Central Services 4,479 3,804 4 ,564 4 ,564 Internal Rent Postage 5,212 4 ,056 3 ,432 3 ,432 Internal Rent - Maintenance 5 9,500 5 9,500 5 9,500 59,500 Internal Rent - Repl Cost 2 69,856 2 69,856 2 69,856 269,856 Internal Rent - Fuel 110,978 86,700 86,700 8 6,700 Internal Rent Genl Liability 699,861 699,861 6 99,861 6 99,861 Internal Rent Workers’ Comp 243,571 243,571 2 43,571 2 43,571 Internal Rent Unemployment 9, 658 9, 658 9,658 9,658 Taxes and Assessments 1 58,009 1 93,791 61,800 61 ,800 Other Costs 14 6 14 7 - -
Emergency Protective Measure 23,403 - - -
Subtotal Maintenance & Operations $ 13,230,159 $ 12,044,721 $ 11,058,231 $ 10,196,231

Fixed Assets
Other Equipment $ 4 ,540 $ 4 ,320 $ 7, 90 0 $ 7, 90 0 Subtotal Fixed Assets $ 4,540 $ 4,320 $ 7,900 $ 7,900

Total Public Works Department $ 23,101,963 $ 2 2,814,083 $ 22,553,603 $ 22,845,065 215City of Costa Mesa, California
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City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2026-2027
264
Non-Departmental
Non-
Departmental
265
For a ccounting a nd b udgeting p urposes o nly, N on-Departmental s erves a s a c ost c enter t hat b udgets c harges and a ppropriations t hat a re n ot a ssigned o r chargeable t o a s pecific d epartment o r function. I t is c ategorized a s a General Government Support function.

Non-Departmental — 90000
Non-Departmental – 50240
This c ost c enter a ccounts f or d ebt s ervice r equirements r elated t o the C ity’s o utstanding b onds. T he C ity h as only o ne b ond: t he 2 017 Lease R evenue B onds. T he 2 017 Lease R evenue B onds, w ith a n annual p ayment o f $2.8 million, i s included i n Non-Departmental p rincipal a nd i nterest p ayment o bject c odes a long w ith d ebt s ervice schedules for a Fire Ladder Truck, a Fire Pumping Engine, Mobile Command Unit, Fire Ambulances and a Police armored v ehicle. A lso i ncluded a re i nterfund t ransfers p lanned f or t he fi scal y ear, i ncluding t he t ransfer t o the Capital I mprovement F und a nd t he I nformation T echnology R eplacement F und i n accordance w ith t he C apital Asset Needs Ordinance (CAN) and the Information Technology Needs Municipal Code. Per the Municipal Code, five percent 5 % o f General F und r evenues a re t ransferred t o Fund 4 01 Capital, a nd o ne a nd a h alf 1½% p ercent is transferred to the Information Technology Replacement Fund 603.

A contingency of $500,000 is included in the annual operating budget; which is a reduction of the normal allocation of $ 1.0 million. T his a mount a llows t he C ity M anager t o retain b udget fl exibility f or o perations d uring t he fi scal y ear and w ill b e used i n accordance w ith t he C ity’s fi nancial p olicies. L egal c osts a re i ncluded h ere t o defend t he C ity in litigation matters that are not assigned or associated with a specific department.

Further, t he R etiree M edical P lan d efined b enefit p lan, w hich p rovides m edical i nsurance b enefits t o employees hired before January 1, 2004. This is a closed employment benefits plan.

In addition, t his c ost c enter a ccounts f or t he o perating s ubsidy t o the H ousing Au thority f or t he H omeless S helter program a nd t he N etwork f or H omeless S olutions P rogram. T he H omeless S helter a nd P rogram b udget i s included in the Housing Authority Fund.

Proposed Budget for
Fiscal Year 2026-2027
218 City of Costa Mesa, California 266
Budget Narrative
The F iscal Y ear 2 026-27 N on-Departmental b udget i s $ 22.3 m illion, a n i ncrease o f $ 3.1 m illion, o r 1 6.0 p ercent compared t o t he a dopted b udget f or F iscal Y ear 2 025-26. T he p rincipal a nd i nterest p ayment i ncludes $ 1.1 m illion to the fund the financing of the Fire Station #2 reconstruction projects.

The C ity i s p roposing a b udget C apital A sset N eeds ( CAN) G eneral F und c ontribution o f $ 6.7 m illion f or C AN inclusive o f r epayment o f p rior y ear de ferment a nd $ 3.1 m illion c ontributed t o t he I T R eplacement F und, i nclusive of repayment of prior year deferment in FY 2025-26 .

Expense by Fund
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

NON-DEPARTMENTAL BY FUNDING SOURCE

General Fund - 101 $ 2 3,423,354 18,494,847 $ 1 9,222,213 $ 2 2,292,621 American Rescue Plan Fund - 204 2,060,652 2, 982,504 $ - - Park Development Fees Fund - 208 - 2 50,000 $ - - Capital Improvements Fund - 401 3 84,576 - $ - - Equipment Replacement Fund - 601 2 20 - $ - - IT Replacement Fund - 603 1 9,500 - - -

Total Non-Departmental $ 25,888,302 $ 21,727,351 $ 19,222,213 $ 22,292,621 Expense Category by Program
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget

NON-DEPARTMENTAL BY PROGRAM
NON-DEPARTMENTAL - 90000

Non-Departmental - 50240
Salaries a nd B enefits $ 1 ,960,907 $ 2 ,0 47,615 $ 4 ,859,345 $ 1 ,793,572 Maintenance and Operations 9,070,177 8 ,106,376 11,565,032 10,673,725 Fixed Assets 14,857,218 1 1,573,359 2,797,836 9, 825,324 Subtotal Non-Departmental $ 25,888,302 $ 21,727,351 $ 19,222,213 $ 22,292,621

TOTAL NON-DEPARTMENTAL

Salaries a nd B enefits $ 1 ,960,907 $ 2 ,0 47,615 $ 4 ,859,345 $ 1 ,793,572 Maintenance and Operations 9,070,177 8 ,106,376 11,565,032 10,673,725 Fixed Assets 14,857,218 1 1,573,359 2,797,836 9, 825,324

Total Non-Departmental $ 25,888,302 $ 21,727,351 $ 19,222,213 $ 22,292,621 219City of Costa Mesa, California
non-
departMental
267
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
NON-DEPARTMENTAL BY ACCOUNT: ALL FUNDS
Salaries and Benefits
Salaries and Wages $ - $ - $ - $ ( 4,027,157) Salaries & Wages $ - $ - $ 1 ,97 7, 205 $ 2, 938,589 Retirement 60,000 60,000 422,140 4 22,140
City Contrib - Retiree Medical 1,900,907 1 ,987,615 2 ,460,000 2 ,460,000 Subtotal Salaries & Benefits $ 1,960,907 $ 2,047,615 $ 4,859,345 $ 1,793,572

Maintenance and Operations
Multi-Media, Promos, Subscrpt. $ 2 09,313 $ 1 81,494 $ 1 64,000 $ 1 64,000 Consulting 13,264 425 1 ,000 1 ,000
Legal 8 26,997 2 05,835 1,500,000 5 00,000
Principal Payments 2 ,168,383 2 ,030,391 3 ,450,000 3 ,550,000 Interest Payments 921,485 8 54,375 1,067,905 1 ,067,905 Grants, Loans and Subsidies 1 ,304,993 1,321,993 1 ,264,994 1,264,994 Internal Rent - Repl Cost 3 ,167,403 3 ,297,183 3 ,297,183 3,297,183 Internal Rent Genl Liability - - 319,950 828,643 Contingency 4 57,722 214,679 5 00,000 -
Other Costs 61 8 - - -
Subtotal Maintenance & Operations $ 9,070,177 $ 8,106,376 $ 1 1,565,032 $ 10,673,725

Fixed Assets
Land $ - $ 1 ,728,861 $ - $ -
Subtotal Fixed Assets $ - $ 1,728,861 $ - $ -

Transfers Out
Operating Transfers Out $ 1 4 , 857, 218 $ 9, 844,498 $ 2 ,797, 836 $ 9, 825,324 Subtotal Transfers Out $ 14,857,218 $ 9,844,498 $ 2,797,836 $ 9,825,324

Total Non-Departmental $ 25,888,302 $ 21,727,351 $ 19,222,213 $ 22,292,621 Proposed Budget for
Fiscal Year 2026-2027
220 City of Costa Mesa, California 268
From Fiscal Year 2023-2024 Through Fiscal Year 2026-2027 Expense by Account
FY 23-24
Actuals
FY 24-25
Actuals
FY 25-26
Adopted
Budget
FY 26-27
Proposed
Budget
NON-DEPARTMENTAL BY ACCOUNT: GENERAL FUND ONLY
Salaries and Benefits
Salaries and Wages $ - $ - $ - $ ( 4,027,157) Salaries & Wages - - 1,977,205 2, 938,589
Retirement 60,000 60,000 422,140 422,140
City Contrib - Retiree Medical 1 ,900,907 1,987,615 2,460,000 2,460,000 Subtotal Salaries & Benefits $ 1,960,907 $ 2,047,615 $ 4,859,345 $ 1,793,572

Costa Mesa City CouncilMay 12, 2026

Costa Mesa City Council
May 12, 2026