Escondido City Council
May 11, 2022

FM\105 (Rev.08/06)

C I T Y O F E S C O N D I D O

BUDGET ADJUSTMENT REQUEST

Date of Request: 05/11/2022 For Finance Use Only
Log #
Fiscal Year ear Department: Finance
Division:

Project/Budget Manager: Christina Holmes 4620
Name Extension
Council Date (if applicable): 05/11/2022
(attach copy of staff report)
Budget Balances
General Fund Accts
Revenue
Interfund Transfers
Fund Balance

Project/Account Description Account Number Amount of Increase Amount of Decrease General Fund – Transfer Out 5999-001 $268,960
General Fund – Fund Balance 3050-001 268,960
Water Fund – Transfer Out 5999-555 54,530
Water Fund – Other Revenue 4990-555 54,530
Wastewater Fund – Transfer Out 5999-558 26,510
Wastewater Fund – Other
Revenue
4990-558 26,510
Fleet Services Fund – Transfer
In
4999-653 350,000
Fleet Services - Gasoline 5111-653-715 350,000

Explanation of Request:

Third Quarter Budget Adjustment to amend the FY2021/22 operating budget due to the increase in fuel prices.

APPROVALS

Department Head Date

City Manager Date

Finance Date

City Clerk Date
Distribution (after approval): Original: Finance

DocuSign Envelope ID: 3149950D-06BE-47A0-B7EF-5CE943AC490B 5/4/2022
5/4/2022
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STAFF REPORT

May 11, 2022
File Number 0430-30

SUBJECT
FISCAL YEAR 2022/23 OPERATING BUDGET BRIEFING –

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council provide direction regarding the Fiscal Year 2022/23 General Fund Operating Budget.

Staff Recommendation: Provide Direction (Finance: Christina Holmes) Presenter: Christina Holmes, Director of Finance

ANALYSIS
The City’s annual budget process begins around December each yea r with an update of the budgetary forecast and the General Fund Multi-Year Financial Plan. The financial forecast takes a look forward at the City’s General Fund revenues and expenditures. Its purpose is to identify financial trends, shortfalls, and potential issues so the City can proactively address them. It does so by projecting out into the future the fiscal results of continuing the City’s current service levels and policies, providing a snapshot of what the future will look like as a result of those policies.

General Fund Financial Forecast Accuracy
The revenue projections and methodology used in the forecast are estimated based on current and known conditions, historical performance , and consultation from subject matter experts . Over 42% of total General Fund operating revenue comes from Sales Tax, which is highly sensitive to economic conditions, making this revenue particularly challenging to forecast. To assist with this analysis, the City works closely with its sales tax consultant, AvenuInsights, in projecting sales tax revenue. Because sales tax revenue is tied to economic indicators, City staff have taken a conservative approach in forecasting this revenue due to the fluctuations that can occur. For example, during the Great Recession this revenue was significantly impacted and fell by 34% or $11.0 million . The economy and subsequent Sales Tax revenue took more than 5 years to return to pre-recession levels.

Since the Great R ecession, the City has experienced a stable economy with moderate revenue growth averaging 4% annually. Then in March 2020, at the onset of the COVID -19 pandemic, the public health measures and restrictions forced government operations and private busine sses to close or drastically alter operations. Many economists predicted that the sudden closures would create a severe economic 328
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downturn comparable to the Great Recession, which had a devastating impact on the City’s General Fund as noted above . The FY2020/21 Operating Budget reflected those economic conditions, at the time of adoption in June 2020 the emergency remained in effect and the timeline for resuming many operations and businesses was uncertain. Overall operating revenue was anticipated to decline by 5%.

COVID-19 restrictions began to be lifted in FY2020/21 and a combination of California fully reopening its economy, improved vaccination rates, public health measures to reduce the spread of the COVID-19 virus, and additional federal funding a llowed for additional public activities and improved the economic environment. As a result, the City’s major General Fund revenues grew significantly in April, May, and June 2021 and operating revenues exceeded the original FY2020/21 budgeted amount by $11.4 million, a

10.8% increase in revenue from the prior fiscal year.

The following table depicts the anticipated annual General Fund Operating Revenue budget compared to the actual General Fund Operating Revenue reported at the close of the fiscal year (in millions). Excluding the fiscal years noted below (Note 1 and Note 2), on average actual operating revenue has been above the amount projected by about 1.2% over the previous 10 years.

Operating
Revenue
Budget
Operating
Revenue
Actuals Over/(Under)

%
FY2009/10 $73.0 $68.0 ($5.0) (6.8%) Note 1
FY2010/11 67.6 69.7 2.1 3.1
FY2011/12 72.1 74.5 2.4 3.3
FY2012/13 75.9 77.7 1.8 2.3
FY2013/14 80.7 81.4 .7 .9
FY2014/15 86.3 84.7 (1.6) (1.9)
FY2015/16 89.2 90.8 1.6 1.8
FY2016/17 91.4 91.4 - -
FY2017/18 97.5 100.0 2.5 2.6
FY2018/19 101.1 102.4 1.3 1.3
FY2019/20 105.4 102.3 (3.1) (3.0) Note 2
FY2020/21 102.0 113.4 11.4 11.2 Note 2
Note 1: The Great Recession, which began in 2007, impact ed both Sales tax revenue and Property tax revenue. Actual tax revenue fell by more than $6.7 million between FY2008/09 and FY2009/10, it was uncertain when the City would begin to recover from this recession.

Note 2: As noted above, the COVID-19 pandemic began in March 2020 and had an immediate impact on City revenues in FY2019/20 , resulting in a decrease of $3.0 million . This was due to the Stay at Home orders and restrictions that closed segments of the economy. However, as restrictions were lifted during 329
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FY2020/21, a change in consumer behavior a nd pent up demand for goods drove sales tax revenue to pre-pandemic levels resulting in a 21% increase in revenue from the prior year .

Since the impacts of the Great Recession, the City has also been challenged with funding growing expenditures and community service needs, with the moderate revenue growth experienced as result of economic conditions. Cost saving measures have been implemented in an effort to keep expenditures in line with the growth of revenue, further described under “Efficiencies, St affing, and Cost -Control Measures” below. The following table depicts the annual General Fund Operating Expenditure budget compared to the actual General Fund Operating Expenditures reported at the close of the fiscal year (in millions).

Operating
Expenditure
Budget
Operating
Expenditure
Actuals (Under)

%
FY2009/10 $76.7 $75.4 ($1.3) (1.7%)
FY2010/11 73.6 71.7 (1.9) (2.6)
FY2011/12 72.9 72.0 (0.9) (1.2)
FY2012/13 77.9 75.7 (2.2) (2.8)
FY2013/14 82.8 80.7 (2.1) (2.5)
FY2014/15 88.7 86.5 (2.2) (2.5)
FY2015/16 91.9 89.9 (2.0) (2.2)
FY2016/17 94.1 90.8 (3.3) (3.5)
FY2017/18 100.7 98.4 (2.3) (2.3)
FY2018/19 104.4 102.0 (2.4) (2.3)
FY2019/20 108.4 106.0 (2.4) (2.2)
FY2020/21 110.3 106.1 (4.2) (3.8) Note 1
Note 1: The expenditure savings in FY2020/21 were largely the result of vacant staff positions in multiple departments as recruitments are being performed. The effects of the COVID -19 pandemic and various closures also resulted in expenditures being less than budgeted. In May 2020 as a result of th e closures of recreation facilities, certain Recreation and ASES Department staff were furloughed. In addition, the Library professional services contract was amended to account for the reduction in services, both of which contributed to the Community Services budget savings of $1.3 million. Expenses for utilities were also under the amount budgeted as the result of closures of various City buildings during the fiscal year.

Similar to the forecast methods used for annual Operating Revenue, the City b udgets conservatively for anticipated Operating Expenses. Over the previous 10 -years, Operating Expenses have been approximately 2.2% below the budgeted amount. Although the City does experience savings each year from employee services resulting from vacant positions, these are not assumed in the Operat ing Budget or Financial Forecast with the goal of developing a conservative budget. For example, i n calendar year 2021 the City had the highest turnover rate at 14% , which is not unique to the City given the current competitive local job market. The FY2020/21 Operating Budget also assumed that the COVID-19 closures 330
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would be lifted; however, the services the City provides continued to be restricted resulting in the additional expenditures savings of $4.2 million compared to prior fiscal years.

Efficiencies, Staffing, and Cost-Control Measures
Operating revenue has not kept pace with the growing costs of providing City services, and as a result the General Fund long-term financial plan has projected annual deficits creating a structural budget deficit .

To address this projected shortfall, the City has maintained a ha rdline on expenditures and staff are continuously seeking measures that ensure efficiency, while enhancing basic operations . Decreased spending has been accomplished by:
 Reducing City staff by over 140 employees from 2008 to 2021 (10% reduction) as the Ci ty’s population grew by more than 10%.
 Controlling pension and employee benefit costs by transferring the responsibility to employees to fund a larger portion of the total costs.
 Forming strategic partnerships to provide services , such as the Escondido L ibrary, to save an estimated $400,000 annually.
 Investing in technology to reduce ongoing costs and expand online services.

While these actions have resulted in controlling annual operating expenses, this has resulted in the lowest per capita spending for the services Escondido provides in comparison to other cities in San Diego North County. Escondido spends approximately $703 per citizen compared to the two other full-service cities in North County, the City of Carlsbad has a per capita expense of $1,368 and Oceansi de’s per capita expense is $912. The City of Escondido has been consistently doing more with less.

Actions Regarding Additional Revenue Opportunities
In addition to cost-control measures, revenue generating opportunities have also been explored:
 In April 2020, City Council adopted an updated fee schedule and cost allocation plan to ensure that certain fees charged by the City for the services being delivered equal the City's cost of providing the services including direct and indirect costs, departmental overhead, and City administration.
 A fiscal analysis was performed to evaluate the cost of providi ng police, fire, public works, community and general services to new residential development, and the results determined that the revenue received is less than the cost to provide ongoing services. In May 2020, the City Council established the City Wide Community Facilities District that would fund City services for new residential development by offsetting ongoing costs of new development with a special tax collected from the new residential property owners in the District. Future revenue resulting from the Services CFD is dependent on future development in the City. A transfer of $285,000 is included as a funding source in the FY2022/23 General Fund proposed budget.  City staff are currently exploring the options for creation of a Short-Term Rental Program, which may generate additional revenue from short term rental hosts. The establishment of a program would involve a large degree of administrative expense, the future fiscal impact is uncertain . A 331
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preliminary review provided by a prospective consulta nt estimates additional annual lodging taxes of less than $100,000 potentially recoverable by the City.

In addition to implementing cost saving measures and pursuing revenue -generating opportunities, since the Great Recession, the City has controlled costs by annually deferring maintenance and capital project costs. More than $8 million annually has been deferred for the City’s parks, playgrounds, libraries, recreation centers, pools, streets, sidewalks, bridges, storm drains, fleet, and other City fa cilities.

Deferred maintenance costs will only continue to increase in the future.

Despite all of these measures, and the City’s efforts to fund projects with grants and other sources of one- time funds, it has not been enough to meet growing costs and demand for services. The FY2021/22 Operating Budget was adopted in June 2021 and contained certain significant budget changes to reflect the increased demand for City services around traffic safety and homelessness , that also reflected community priorities. These included:
 A multi-faceted strategy to improve traffic flow and safety throughout the City by providing additional resources to the Engineering, Police, and Public Works department budgets.  Additional staff and resources necessary for essential services such as homeless encampment clean-up, patrolling hotspots, and removing refuse, to be provided seven-days per week.  The budget also restore d three police officer positions to the Community Oriented Policing and Problem Solving (COPPS) Unit to provide a more effective, efficient and consistent level of service by increasing coverage and proactivity to further the City’s approach for addressing the community impacts of homelessness while being sensitive to the importance of tackling underlying causes and helping people.

To continue to provide essential City services and identified community priorities, respond to critical infrastructure maintenance and repair needs, and address an $8 million budget gap, the City Council approved the use of the final one-time source of funds from the Successor Agency Redevelopment Loan repayment of $2.2 million and a transfer of $6.1 million from the Section 115 Pension Trust Fund. The Section 115 Pension Trust was funded with transfers of one -time funds and is not a n ongoing source of revenue, funds could be depleted in under 4 years if used each year to close the projected budget gap.

Due to the continuing budget shortfall projected each fiscal year, the City may have to decide on cuts to City services, including Public Works and Public Safety services.

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Community Engagement and The Escondido Discussion
To assess resident satisfaction with City services provided and to identify issues and community priorities to address through this year’s budget process, i n December of 2021 the City conducted a Community Opinion Survey. Close to 1300 residents were surveyed and identified the following City service priorities:
 Addressing homelessness
 Attracting businesses and jobs to the City
 Improving public safety and police services
 Maintaining and repairing local streets, roads and sidewalks  Keeping public areas clean and free of graffiti
As part of this year’s budget process staff built on the results of the Community Opinion Survey by engaging Escondido residents CityWide through The Escondido Discussion, to hear local community priorities and City service needs. In addition to holding four City hosted events, including one at the Park Avenue Community Center for Seniors, City staff have met or will be meeting with the following groups and the list continues to grow:
 Auto dealership owners
 Brookside HOA
 Casa de Amigos
 Community Alliance for Escondido (Café)
 Downtown Business Association
 East End Club
 Emerald Heights HOA
 Escondido Democratic Club
 Escondido Education COMPACT
 Escondido Republican Club
 Greater Escondido Chamber of
Commerce
 Kiwanis
 Library Support Groups
 Mercado District
 Neighborhood Leadership Forum
 Old Escondido Neighborhood
 Orchard Church
 Rotaries
 San Diego County Taxpayers Association
 Universidad Popular
As part of each discussion and through extensive outreach including social media, utility bills, partnerships with the local school districts, and City newsletters , community members have been encouraged to complete an online survey to share their priorities for the City of Escondido. As of April 28, 2022, feedback from 572 community members has been provided . Based on the responses received, the community confirmed the five priorities identified in the Community Opinion Survey.

The proposed FY2022/23 operating budget continues to reflect an overall strategy of fiscal prudence on the part of the entire City workforce by continuing to maintain a hardline on expenditures while also continuing to provide core City se rvices including Public Safety, Public Works, Community Services, and Community Development. Understanding the community’s priorities was also a critical part of the City’s budget process. As a result, there are items included in the proposed operating budget that reflect these high priority items and the needs expressed by the community. 333
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The community has identified that addressing the impacts of homelessness and keeping the City clean and free of graffiti are top priorit ies. In order to meet the demand for service around homeless encampment clean -up, patrolling hotspots, and removing refuse , t he FY2021/22 adopted operating budget included additional resources that enabled the Public Works staff to expand from a five-day work week to a seven -day work week. After a prolonged recruitment , the weekend clean -up crew began conducting those activities on February 1, 2022. To continue to address these priorities and the increasing demand for debris removal, additional equipment of $230,000 is included in the FY2022/23 proposed operating budget.

Maintaining and repairing local streets, roads and sidewalks has been identified as the second highest priority for the community. The City’s Pavement Condition Index (PCI) has been ranked as Fair and is the second lowest ranked among Northern San Diego cities. The current General Fund budget allows for treatment of approximately 8% of the City’s 740 lan e miles per year; at a minimum an additional $3.5 million would be required to improve the PCI ranking and address the community’s concern for maintaining the City’s local streets and roads.

An important item expressed by the community is maintaining and improving public safety and police services. Each year, the Police department receives approximately $2 million in grant, task force, and asset forfeiture funding. These funds augment the General Fund operating budget and provide the resources required to add two new criminal intelligence positions in this fiscal year’s budget to provide proactive enforcement through crime prevention, intervention and suppression efforts. However, additional locally controlled funding is needed to ensure the City can continue to m aintain local fire protection and prevention services, paramedic and emergency medical services and police services to reduce crime.

To maintain an appropriate level of service provided by the City, address select community priorities, and provide resources for infrastructure maintenance and repair needs, the FY2022/23 proposed operating budget is projecting a net operating deficit of $8.5 million. The City continues to strive to provide the level of service residents expect and deserve, but given the de ficit, inflation and rising costs, it is increasingly becoming more difficult to do so and therefore, without an additional source of locally controlled revenue, significant cuts to public safety and public works services must be considered.

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The FY 2022/23 Preliminary Operating Budget Sources and Uses are as follows:

Sources of Funds:

Operating Revenue $118,257,230
Deposit – PEG Fees 11,700
Transfer from Gas Tax Fund 2,055,000
Transfer from CFD No. 2020-1 (The Services) 285,000
TOTAL, Sources $120,608,930

Uses of Funds:

Operating Budget $128,520,810
Transfer to Building Maintenance 86,880
Transfer to Reidy Creek Golf Course – Debt Service 362,750 Transfer to Successor Agency – Housing 25,000
Transfer to Vehicle Parking District 112,400
TOTAL, Uses $129,107,840
FY 2022/23 General Fund Net Operating Deficit ($8,498,910) Options to Close the Fiscal Year 2022/23 General Fund Deficit Until revenue is increased on an ongoing and structural basis, the City must continue to rely on short - term, one -time resources to continue operations and avoid drastic cuts to City services. The staff recommendation to address the $8.5 million deficit and achieve a balanced budget for Fiscal Year 2022/23 is to utilize a portion of the Section 115 Irrevocable Pension Trust.

In February 2018 , City Council authorized the establishment of a Section 115 Irrevocable Pension Trust Fund. The Trust Fund is use d to set aside and hold money to meet future pension liabilities and can be used to provide economic relief during recessionary cycles and/or rate increases that are significantly above anticipated projected employee rate increases. Funds placed in this Trust can also be used to offset the City’s “normal” CalPERS costs, such that if funds are necessary for other purposes, a certain amount of flexibility is present. The projected payments to CalPERS in the FY2022/23 General Fund Operating Budget including an estimated Normal Cost of $8.7 million and the Unfunded Actuarial Liability payment of $19.7 million.

As of March 31, 202 2, the Section 115 Pension Trust Fund has a balance of $ 25,840,638. However, in order to close the $8.2 million budget deficit i n the prior fiscal year budget (FY2021/22), City Council approved the transfer of $6.1 million from the Section 115 Pension Trust Fund. This would have reduced the balance to $19.7 million. Utilizing the Section 115 Pension Trust to close the FY2022/23 b udget gap of $8.5 million would further reduce the Trust Fund balance to $11.2. However, the improved operating 335
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revenue projections that have been presented in the Third Quarter Financial Status Report may reduce the amount of one -time funds that will be used to address the budgeted net operating deficit for FY2021/22, but a portion of the Section 115 Pension Trust Fund may still need to be utilized.

The General Fund also has a Reserve Balance of $17,392,319. The Reserve was established based on a risk-based analysis and funds are to be used to mitigate current and future risks, adequately provide for cash flow requirements, and to fund one -time unanticipated expenditure requirements. Based on the analysis and general government best practices, an adequate funded level is 25% of budgeted General Fund operating revenue. T he proposed General Fund operating revenue budget in FY2022/23 is $118,257,230 and 25% of this amount is $ 29,564,308. The current ba lance of $17,392,319 is 14.7% of budgeted operating revenue, which is below the identified acceptable amount; therefore, it is not recommended to utilize these funds to close the budget gap.

If the City Council determines it would not be desirable to utilize $8.5 million from the Section 115 Pension Trust Fund, cuts to the preliminary operating budget will need to considered. The FY2022/23 preliminary operating budget proposes certain additions to the budget to reflect specific public service needs and community requests. These are described in further detail by department under “Operating Budget” below. Three staff positions were added to the General Fund budget to address high priority City service needs. New infrastructure expenses have been a dded, including equipment for the homeless encampment clean up crew and funds to make critical repairs to specific roofs on City owned buildings.

In addition, the Fire Department has also proposed funds to replace aging and failing equipment.

The following is a summary and total cost of these proposed additions:

Description General Fund
Budget Amount
Staff Position – Grant Writer Management Analyst $112,800 Staff Position – Human Resources Analyst 76,000
Staff Position – Digital Media Technician 77,240
Equipment for the Homeless Encampment Clean Up Crew 230,000 Roof Repair of City Buildings 550,000
Fire Department EMS Fee Study 50,000
Fire Department First Responder Wellness App 45,000
Fire Department Standards of Coverage Study 150,000
Fire Department Furniture & Equipment 269,000
Total Proposed Budget Items $1,560,040
The City Council can provide direction to remove these line items from the preliminary operating budget.

Additional items can also be considered to close the budget gap , the following are those that have been stated by City Council in previous public meetings:
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Description General Fund
Budget Amount
A hiring and salary freeze for all City employees could be enacted, resulting in estimated General Fund savings of $2 million and $3 million CityWide in FY2022/23. To move forward with this option, the City would be required to engage in a Meet and Confer process with each bargaining unit.

$2,000,000
The annual support the City provides to numerous community organizations, either through direct payments of expenses such as utilities, staff support of community events, reduced user fees that benefit the community, and other City services, could be eliminated.

Between
$6,000 - $5,600,000
If the City Council has additional proposals, Staff will include those for consideration in the FY2022/23 Operating Budget that will be presented at the June 8, 2022 meeting. It is also important to note that the community engagement and outreach regardin g the City’s budget and projected operating deficit will continue after this fiscal year’s budget is adopted. The City Manager has set aside funds in the budget to enhance the dialogue with the community, evaluate the services the City provides, and deter mine the right size of the organization to continue to provide those critical City services while addressing the high priorities of the community.

REVENUE PROJECTIONS
The projected Fiscal Year 202 2/23 General Fund revenue estimate is $ 118.3 million. The Fiscal Year 2021/22 amended revenue is the starting point to forecast revenue in the next fiscal year based on factors such as economic indicators, development in the City, past revenue history, and ongoing impacts from the COVID-19 pandemic. The FY2022/23 projected operating revenue is estimated to increase $6.8 million or 6% over the FY202 1/22 amended revenue projection. The following are the basic components underlying the revenue projections in FY202 2/23, followed by an explanation of ea ch category in the following paragraphs:

Revenue
FY2021/22
Amended
FY2022/23
Projected Change %
Sales Tax $46,347,300 $50,012,200 $3,664,900 8%
Property Tax 30,925,000 32,350,100 1,425,100 5
Other Taxes 13,680,000 14,617,860 937,860 7
Charges for Services 10,169,710 10,698,650 528,940 5
Intergovernmental 3,341,000 3,450,000 109,000 3
Fines & Forfeitures 908,000 832,500 (75,500) (8)
Permits & Licenses 1,412,500 1,778,500 366,000 26
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Investment and Rental Income 4,313,000 4,350,920 37,920 1 Other Revenue 323,000 166,500 (156,500) (48)
Total Operating Revenue $111,419,510 $118,257,230 $6,837,720 6% One-Time Revenue 1,056,680 - (1,056,680) (100)
Total Revenue $112,476,190 $118,257,230 $5,781,040 5%
Sales tax revenue is highly sensitive to economic conditions and is impacted by the levels of unemployment, consumer confidence, and per-capita income that drive spending and growth in sales tax receipts. Over the past two years, since the onset of the COVID-19 pandemic, the U.S. economy has swung from the deepest recession on record to a quick recovery and a surge of inflation. The sales tax revenue collected by the City was at record highs leading into 2020, but the economic impacts of the restrictions due to COVID-19 reduced the FY2019/20 revenue by $2.0 million or 5% from the prior fiscal year and an additional decline of 3% was expected in FY2020/21. However, a combination of California fully reopening its economy, improved vaccination rates, public health measures to reduce the spread of the COVID -19 virus, and additional Federal funding fostered an economic environment in which consumers’ buying power remained intact and the demand to spend on taxable goods significantly increased during the fiscal year. Overall, the City’s local economy experienced a fairly strong recovery as well and as a result, sales tax revenues distributed to the City in FY2020/21 increased by $7.6 million or 21% from the prior year.

There are now indicators that the economy could slow once more. The fiscal support through Federal programs, which assisted in pushing up demand in 2020 and 2021 through stimulus spending, has expired.

Although wages have been increasing nationwide, inflation has been rising faster, leading to a decre ase in purchasing power which could hurt consumer demand. On the other hand, the combination of Federal stimulus programs and limitations on household spending for certain items, such as travel, have enabled consumers to save, which could prop up spending leading to continued sales tax growth in the next fiscal year.

The City works closely with its sales tax consultant, AvenuInsights, in projecting sales tax revenue. Based on AvenuInsights ’ analysis of the trend in year -to-date tax receipts and an examin ation of the local economy, the City’s sales tax revenue is anticipated to increase in FY2022/23 by 8% to reach $50 million.

The largest economic segments in the City are transportation and receipts from the County Pool. Together these segments generate 57% of the total sales tax revenues. The transportation segment includes new and used auto sales and service stations, and is projected to increase by 7% or $1 million from the prior year. According to the California Auto Outlook published by the California New Car Dealers Association, the demand for new vehicles may ease in calendar year 2022 due to slower economic growth, increasing inflation, and rising interest rates, but lean invento ries will continue to be the controlling factor. As a result, softening demand might reign in some of the upward pressure on vehicle prices, but it’s not likely to have an impact on sales levels.
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The construction sales tax segment accounts for revenue g enerated from building materials, including both wholesale and general retail, and is projected to increase by 2.6% from the prior year. This is due to an increase in the price of goods, such as lumber and steel, and an increase in ongoing development and construction projects in the City.

The economic sales tax category , which ha d been negatively impacted throughout the pandemic , is general retail sales in brick and mortar stores like family apparel, department, and electronics/appliance stores. T his segment is projected to increase by 3.6% compared to the prior fiscal year as consumers slowly return to pre-pandemic spending habits. Conversely, online sales, which increased by more than 27% compared to pre -pandemic levels, are projected to increase by approximately 7.3% from the prior year, and continues to impact the growth in general retail as consumer shop more online.

Property tax revenues also represent a major funding source for the City at 27% of the General Fund. The major factors influencing property tax revenue are the annual inflation adjustment under Proposition 13, number of home sales, and increased median home prices. In accordance with State law, property is assessed at actual full cash value and the maximum tax is 1 % of the assessed valuation. Proposition 13, passed by California voters in 1979, specified that an assessed value may increase at the rate of the Consumer Price Index, not to exceed 2% per year based on the 1979 value, unless the property is improved or sold to establish a new market value. The overall property tax revenue is projected to increase approximately 5% from the prior fiscal year budgeted amount. This is attributed to an increase in current secured and unsecured tax projections, along with an increase in property transfer taxes based on the current and projected development activity, such as permits, inspections, and plan checks, which indicate continued growth in property sales.

Also included in Property tax revenues is the Property tax in lieu of Ve hicle License Fees (“VLF”) which is estimated to increase by 3% to reach projected revenue of $16.1 million. This revenue is in addition to the regular apportionment of property taxes received. In 2004, the Legislature permanently reduced the Vehicle Licen se Fee rate from 2% to 0.65 % and compensated cities for their revenue loss with a like amount of property taxes, dollar-for-dollar. Each agency’s property tax in lieu of VLF allocation increases annually in proportion to the growth in gross assessed valuat ion in the City based on the prior year assessment role.

Other taxes , which include franchise fees, Transient Occupancy Tax, business license fees, property transfer tax and the Redevelopment Property Tax Trust Fund (“RPTTF”) residual payment, account for 12% of General Fund revenue. These other taxes are projected to increase by 7% to reach projected revenue of $14.6 million. The City collects franchise fee revenues from San Diego Gas and Electric (SDG&E), cable companies conducting business within City limits, and Escondido Disposal Incorporated (EDI) for trash collection services. Overall franchise fee revenues are projected to be $8 million, an increase of 7% from the prior year. Revenue growth is projected based on population, inflation factors, and historic revenue trends. In addition, due to continued reopening of the economy and pent up demand for travel, Transient Occupancy Tax is projected to increase by 29% to reach $2.2 million. 339
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Charges for services are projected to increase compared to the prior fiscal year with estimated revenue of $10.7 million. Charges for services include paramedic fees and Community Services fees for recreational and community activities. Revenue estimates are based on the projected number of facilities and classes, number of participants, fee levels, and staff’s estimate of demand for programs and services.

Permits and licenses that are collected for building, plumbing, electrical, mechanical, fire code and mobile- home permits are projected to increase by 26% from the FY2021/22 budget amount to reach projected revenue of $1.8 million. This is due to increases in the number of new building permits from several large development projects located in the City.

Fines and forfeitures are projected to decrease slightly from the prior fiscal year to reach $832,500. Fines and forfeitures are collected by the City for vehicle code fines, parking ticket fines, other court fines, code enforcement citations, and impound fees.

Investment and Rental Income includes income from City -owned properties and interest earned from investing activities. This revenue is projected to increase by 1% to reach revenue of $4.4 million. The City plans to prepay the annual unfunded accrued liability (“UAL”) for the Safety and Mis cellaneous Plans in July 2022, which will result in interest savings to the General Fund. The General Fund is responsible for payment of 100% of the Safety Plan and approximately 56% of the Miscellaneous Plan.

Other Revenues or miscellaneous receipts projections have been decreased by approximately $156,500 to reflect the actual revenue received in prior fiscal years for certain accounts.

One-time revenue budgeted in Fiscal Year 202 1/22 accounts for fire assistance reimbursements of $1. 1 million. The City is not currently budgeting any one -time revenue in Fiscal Year 202 2/23. The City’s financial policy allows for the use of one -time resources to pay for non-recurring expenditures, provide transitional funding of operations for a limited time period, add to reserves, or pay down unfunded liabilities.
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OPERATING BUDGET
The total proposed Fiscal Year 2022/23 General Fund Operating Budget is $128.5 million. It has increased by approximately $9.9 million or 8% compared to the revised Fiscal Year 2021/22 Operating Budget. The following chart shows General Fund expenditures by department and compares the total FY202 2/23 projected expenditures to the current fiscal year revised operating budget.

Department
FY2021/22
Revised Expenses
FY2022/23
Projected Expenses Change %
General Government Services $6,740,760 $7,110,310 $369,550 5% Community Services 9,073,750 9,893,430 819,680 9
Community Development 5,094,590 5,148,680 54,090 1
Engineering 2,820,380 2,940,680 120,300 4
Public Works 12,485,090 13,479,080 993,990 8
Police 49,097,170 53,258,950 4,161,780 9
Fire 28,965,040 31,290,020 2,324,490 8
California Center for the Arts 2,412,680 2,730,260 317,580 13 Other Expenses 1,936,450 2,669,400 732,950 38
Total Expenditures $118,625,910* $128,520,810 $9,894,900 8% *Excludes FY2020/21 Carryover Requests of $681,750
As noted earlier, certain items were incorporated into the proposed operating budget that reflect the community priorities received as part of the City’s public engagement process . The following are additional budget highlights for General Fund Departments.

General Government Services
General Government Services include the following departments: City Council, City Manager, City Attorney, City Clerk, City Treasurer, Finance, Human Resources, Risk, Information Systems, Enterprise Software and Web Administration, and Geographic Information Systems (“GIS”). Significant budget highlights include the addition of a Management Analyst position to the Finance Department budget at an approximate annual cost of $112,800 to oversee the City’s grant application and management activity, to better leverage federal and state funding opportunities. A Human Resources Analyst position, previously eliminated in 2004 due to budgetary cuts, was added back to the Human Resources department budget at an approximate annual cost of $76,000 to assist with the increased workload from ongoing employment and recruitment efforts. The Real Property division was transferred to the City Manager’s Department to better leverage these functions as a n Economic Development tool. The 341
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associated expenses were transferred from the Engineering Department budget, so there was no impact to total General Fund expenses.

Community Services
Community Services includes the following departments: Communications, Digital Media Services, Recreation, Library Services, Older Adult Services, and Senior Nutrition. These combined department operating budgets total $9.9 million in FY2022/23 and have increased $819,680 or 9% over the prior year.

As part of Communications, Digital Media Services staff ensure that residents have access to high quality broadcasts of City Council meetings and communicate important information to the public regardi ng policies, events, services, and activities of City government. At the recommendation of the City Council Boards and Commissions subcommittee, an additional full -time Digital Media Technician position has been added in order to record and broadcast Boar d and Commission meetings , which increased the operating expenses by $77,240 . Due to the increase in equipment usage over the past two years to support virtual and hybrid meetings, an annual maintenance contract of $5,000 has been added to extend the life of some of the City’s aging equipment.

The proposed increase in expenditures for Community Services is predominantly attributed to an expansion of the After School Program (ASP) in partnership with the Escondido Union School District (EUSD) but will be offset by the revenue generated through the program. EUSD requested to expand the City’s ASP service from two to six schools. As the lowest-cost option available, this provides a tremendous benefit to working parents. To offset the increased expenses that will be incurred by the City, EUSD will be utilizing funding from their Expanded Learning Opportunities Program (ELOP) to reimburse the City for program administration.

Community Development
Community Development includes Planning, Code Compliance, and Building. These departments guide the physical development of the City, protect life and property through the application of building codes and standards, and enhance the image and appearance of the City. These combined department operating budgets to tal $5. 1 million and increased 1% compared to the prior year primarily due to increases in employee services.

Public Works
Public Works includes the Streets and Parks Department operating budgets. The Streets Department is responsible for filling potholes, maintaining sidewalks, cleaning storm water channels, replacing traffic signs, sweeping and lane striping City streets, and graffiti eradication. The Parks Department maintains the City’s parks, median and parkway landscaping, open s paces, trees, and landscaping at City facilities.

Proposed FY2022/23 operating expenses increased by $993,990 or 8% from the prior fiscal year .

Significant budget changes include the transfer of the Deputy Director of Public Works to the Streets Department from the Building Maintenance Fund to better reflect the current responsibilities of the 342
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position. The City is currently experiencing material cost increases for concrete, asphalt, graffiti supplies, and added costs for sweeper broom replacements which is expected to continue into the next fiscal year and have been included in the total operating supplies budget.

An additional $230,000 has been proposed for the purchase of additional equipment for the homeless encampment clean-up crew needed to suppo rt the demand for service around homeless encampment clean-up, patrolling hotspots, and removing refuse – a top priority identified by residents.

Police
The Police Department improves community safety, enhances crime prevention, and provides emergency response. Overall, the Police Department’s costs are increasing by $ 4.2 million or 9% compared to the prior year to reach projected expenditures of $53 milli on. Each year, the Police Department receives approximately $2 million in grant, task force, and asset forfeiture funding. These funds augment the General Fund operating budget and provide the resources required to add two criminal intelligence positions to provide proactive enforcement through crime prevention, intervention and suppression efforts although additional funding is needed to continue to maintain police services and reduce crime .

The proposed budget also includes contract-negotiated animal control cost increases as well as additional funds for the Body Worn Camera and Conducted Energy Devices contract (commonly known as tasers).

Fire
The Fire Department provides emergency operations, emergency preparedness, and fire prevention services to safeguard lives and property. The FY202 2/23 operating budget reflects an increase of $ 2.3 million or 8% increase compared to the prior year to reach projected expenditures of $31.1 million. Due to increases in call volume and the costs of supplies, total Emergency Medical Supplies such as oxygen and pharmaceuticals increased by $120,000. The increased call volume has also led to a more rapid deterioration of personal protective and safety equipment.

The p roposed budget also includes an i ncrease in Professional Services/Contracts for the following activities. An increase in the quality assurance fees of $74,800 is due to an increase in call volume. Funds to conduct an EMS fee study are proposed to defensively determine the appropriate amount the City should be charging for EMS services , estimated at $50,000 . Contract services also include a first responder wellness app & wellness counseling ($45,000), a standards of coverage study and strategic plan consultant estimated at $150,000 (that has not been completed since 1999), and a training tower pump service contract of $15,000. Again, additional locally controlled funding is needed to support local fire protection and prevention, paramedic and emergency medical services.

Other Expenses
Other Expenses accounts for expenditures that are not directly chargeable to other General Fund departments as well as funding for community events. The combined budgets total $ 2.7 million in 343
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FY2022/23 and include expenditures for contractual salary and benefit obligations, various CityWide membership fees, consulting fees necessary for the preparation of expected 2022 Ballot Measures, and direct support provided by the City for the Community Fireworks program, Cruisin’ Grand, and the Christmas Parade.

Enterprise Funds
The City’s Enterprise Funds account for the financial activity of the City’s water utility and the wastewater utility. The costs for providing these services to the public are recovered through user charges. Both the Water and Wastewater funds are investing in technology to reduce costs and maximize efficiencies.

Below is a brief description of each department and a summary of the significant changes in their FY2022/23 Operating Budget.

Water Fund
The Water Fund operates the Water Treatment Plant that supplies water to approximately 26,000 residential, commercial , and agricultural customers in the City. This Department also provides maintenance on the Escondido Canal that carries untr eated water 14 miles from the intake on the San Luis Rey River to Lake Wohlford. The Department’s Lakes and Open Space Division maintains Daley Ranch, Dixon Lake, and Lake Wohlford that provides fishing and boating to the community.

The Water Fund budget increased by $3.7 million or 6% compared to the prior year. In order to manage the increasing environmental regulatory needs for both the lakes and the treatment plant and distribution system operations , a Management Analyst position was added . R esponsibilities will include water conservation, hazmat and hazardous waste activities, reporting, and training. To keep pace with increases passed through from the San Diego County Water Authority , the budget for purchased water costs increased by $600,000. The preliminary budget also includes increases to water treatment chemicals due to the ever-increasing costs of manufacturing and delivering these products, especially during the COVID- 19 pandemic and the increase to Utilities, specifically electricity, is due mostly to rising costs in power.

Wastewater Fund
The Wastewater Fund operates the Hale Avenue Resource Recovery Facility (“HARRF”) for the effective treatment of wastewater within the City’s jurisdiction. The Recycled Water division produces recycled water from the HARRF and distributes it to various City landscape irrigation customers including golf courses, school fields, City parks , and green belts. The Environmental Programs Division administers a number of programs relating to water, wastewater, and storm water compliance.

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The Wastewater Fund budget increased by $1. 4 million or 4.4% compared to the prior year. These increases were primarily due to employee service cost increases of $ 512,210 and increases to Maintenance and Operations to continue to upgrade the City's lift stations to replace old motor starters, upgrade/replace relay logic controls with programmable logic controllers (PLCs) , and to further increase plant and lift station security with additional cameras in strategic locations.

Other Funds
The following “Other Funds” which propose an increase or decrease of more than 10% as compared to the prior year adopted budget are as follows:

Vehicle Parking District
This fund was established to account for transactions related to the maintenance and operation of City - owned public parking lots. Funding is provided by a transfer from the General Fund. Operating expenses are projected to increase by 11.8% or $11,860 due to increases in maintenance and staff costs.

Reidy Creek Golf Course
The Reidy Creek Golf Course fund accounts for the transactions of the Reidy Creek Golf Course managed by JC Resorts. Due to the increase in activity at the course and continued popularity of Disc Golf, the fund is projecting a $177,300 or 19% increase in operating revenue from the prior year with no transfer from the General Fund. Operating expenses are projected to rise by 13% or $108,804 due to the increase in maintenance and staff costs needed to support the increase in activity.

Successor Agency – Housing
This fund was established to account for the continued administration and oversight of housing obligations after the elimination of the redevelopment agency. Due to changes in staff positions and a reallocation of resources, the proposed FY2022/23 operating budget increased by $131,340 or 34.8%.

Mobilehome Park Management
This fund was created to account for transactions related to the management of Mountain Shadows and Escondido Views mobilehome parks. Budgeted operating expenses increased by $60,040 or 37.6% due to anticipated extraordinary maintenance required at a lot in Mountain Shadows (new retaining wall) that will cost more than excess funds from a single year.

HOME Program
This fund was created to account for transactions related to the HOME grant awards. The resources from the Department of Housing and Urban Development (HUD) are expended for affordable housing programs. To allow for better contract management, additional resources were added to Professional Services which increased operating expenses by 20.6% or $12,810.

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Building Maintenance
This fund was created to account for financial activity related to the main tenance and repair of all City - owned buildings. Funding is provided through charges to other departments, based on square footage, common area allocation, and specific maintenance projects. In order to provide an appropriate service level to the City, si x new positions were added to the department including an HVAC Technician, Electrician, two Plumbers, and two Maintenance Technicians. The employee services costs are partially offset by a decrease in professional services/contracts of about $98,000. The roofs of many City buildings are at the end of their useful life resulting in deterioration, leaks, and potential mold. In order to address the deferred maintenance of more than $1 million in roof repairs , the FY2022/23 proposed operating budget includes $550,000 to address urgent repairs needed to prevent further damage.

Fleet Services
This fund was created to account for transactions related to the maintenance, operation, and replacement of the City's vehicles. Total proposed operating expenses increased by $1.1 million or 17.6%. Due to the ongoing General Fund structural deficit and budget limitations, the CityWide vehicle replacement plan has been underfunded and the replacement of critical public safety equ ipment has been delayed. In addition, repair and replacement costs for vehicles has increased substantially due to the impacts of COVID-19, supply chain shortages, and recent inflation. In order to ensure adequate funds are available to provide a safe an d reliable fleet of vehicles, additional funds of $924,560 were added to the City’s Vehicle Replacement program.

Network and Systems Administration
This fund was created to account for financial activity related to Network & Systems Administration services, licensing, and hardware. A Network Systems Engineer was added to the department to address network and cybersecurity support , fully funded by the Water and Wastewater funds. Other operating expenses are due to cybersecurity technology and additiona l technology demands due to COVID -19 as well as additional technology replacement costs anticipated at the Library.

General Liability Insurance
This fund was created to account for transactions related to the City's liability exposure, including its insurance program (excluding property and workers compensation insurance). Insurance premiums have increased by an average of 161% for the City. This increase is not limited to the City, but instead is a result of a hard market cycle. Public entities, across the country but especially in California, and the insurance industry as a whole have witnessed dramatic increases in liability loss development in recent years – meaning the dollar amount of liability claims has grown exponentially. This has resulted in a decrease of available funds for insurance carriers. In an effort to increase confidence level s to rebuild surplus, insurance premiums (across the board) are experiencing drastic rate increases - this is especially true for the general liability and cyber policies.
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Although these increases are significant, as a member of PRISM (a member-directed insurance risk sharing pool of various public en tities), the City benefits in the insurance market due to PRISM’s size and ability to leverage that size in negotiations. The City’s PRISM membership ensures it ’s protecting the City from possible liability exposures at the best cost to its taxpayers.

Property Insurance
The Property Insurance Fund accounts for the transactions related to obtaining property insurance for the City. This fund is proposing a 27.2% or $302,460 increase to its total operating budget due to an increase in the property insurance premium. The increase is in line with insurance increases industry wide as a result of significant increases of property claims from catastrophic events including wildfire s and hurricanes.

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STAFF REPORT

May 11, 2022
File Number 0430-55

SUBJECT
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM AND FISCAL YEAR 2022/23 CAPITAL IMPROVEMENT PROGRAM BUDGET STATUS –

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council review the proposed Fiscal Year 202 2/23 Five-Year Capital Improvement Program and Budget and authorize staff to return with the Fiscal Year 202 2/23 Capital Improvement Program and Budget for final adoption on June 8, 2022.

Staff Recommendation: Provide Direction (Finance Department: Christina Holmes) Presenter: Edrilyn D. Cruz, Accountant

FISCAL ANALYSIS
See Below.

PREVIOUS ACTION
The preliminary Five-Year CIP and FY2021/22 CIP Budget update was taken to the City Council on May 12, 2021. The City Council approved the Five-Year CIP and Budget for FY2021/22 on June 9, 2021.

BACKGROUND
The Five-Year Capital Improvement Program (“CIP”) is a five -year planning tool for major inf rastructure, capital construction, improvements, maintenance projects, and other non‐capital type projects to accommodate restricted funding requirements. The CIP budget is adopted for a single year only, but the plan includes projected programming over a five-year period. The budget is updated and developed annually with a review of on -going projects, determination of available funding, and evaluation and prioritization of projects that respond to current needs and priorities of the City of Escondido (“City”).

Section 1 of the attached Preliminary CIP Budget lists the staff recommendations of projects to be funded in the FY2022/23 Five-Year Capital Improvement Program. A detailed description of each project and the funding source is provided, sorted by the type of project: General City, Library, Parks and Rec reation, Public Art, Public Works, Streets, Wastewater Utilities and Water Utilities. 375
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A description of funding sources and projected available balances and uses are listed in Section 2 of the Preliminary CIP Budget. Nearly all capital projects in the City are paid for using funds which are restricted in some fashion by the funding source:
 Gas Tax, Road Maintenance and Rehabilitation funds, and Transnet funding account for a majority of the City’s $19 million in street projects.
 Development Impact fees, including Park Development, Public Art, Public Facilities, Storm Drain, and Traffic Impact Fees, are collected for the purpose of mitigating the impact of the development on the community. As the City continues to experience growth and expansion resulting from new development, it is anticipated that in FY2022/23, approximately $1 3 million from collections of development impact fees will be available to support appropriate projects.  Water and Wastewater Capital Projects totaling $7 5 million are funded by a combination of customer fees, cost sharing with local agencies, and loan funding.

The proposed projects included in Attachment 1 do not include projects that do not have an identified funding source. A list of unfunded Infrastructure projects CityWide, totaling more than $250 million, was provided to the City Council on April 20, 2022, and is included as Attachment 2.

ATTACHMENTS

1. Attachment 1 – Preliminary Five-Year Capital Improvement Program and Budget FY 2022/23- FY2026/27

2. Attachment 2 – Unfunded Infrastructure Projects

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Attachment "1"
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Table of Contents

Table of Contents

Section 1
FY 2022/23 PRELIMINARY CAPITAL PROJECT BUDGET REQUESTS BY PROJECT TYPE ...................................  1 GENERAL CITY  .....................................................................................................................................  2 LIBRARY ..............................................................................................................................................  2 PARKS AND RECREATION ...................................................................................................................  2 PUBLIC ART  .........................................................................................................................................  4 PUBLIC WORKS  ...................................................................................................................................  4 STREETS ..............................................................................................................................................  5 WASTEWATER UTILITIES ................................................................................................................. 10 WATER UTILITIES  ............................................................................................................................. 12

Section 2
PRELIMINARY CAPITAL PROJECT BUDGET REQUESTS BY FUND ................................................................. 14

Attachment "1"
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Section 1  ‐  Page 1

FY 2022/23 PRELIMINARY CAPITAL
PROJECT BUDGET REQUESTS BY
PROJECT TYPE

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AMERICAN DISABILITIES ACT

Funding to respond to internal and external requests for reasonable accommodation as required by Federal ADA law. Also provides for projects which ensure accessibility to public facilities within the City.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 General Capital   $25,000    $‐       $‐      $‐      $‐

LIBRARY CIRCULATING MATERIALS

Professional Librarians from Library Systems & Services purchase new titles in all formats to meet needs of Escondido's increasing population. Funds will be expended by the   e n d   o f   t h e   f i s c a l   y e a r .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Public Facility Fees  $250,000    $250,000    $250,000    $250,000     $250,000

11TH AVENUE PARK

Development of a new park on the corner of 11 Avenue and Avenida Del Diablo Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Park Development  $‐       $‐      $1,000,000    $1,000,000    $1,000 ,000

ATHLETIC FIELD LIGHTS

This project will provide lights on existing sports fields that are currently not lit, expanding their usage into the evening and increasing revenue through field rentals and light fees.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Park Development  $‐       $‐      $522,600    $412,000    $301,300

GENERAL CITY

PARKS AND RECREATION
NEW

LIBRARY
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CITY SKATE PARKS

This project, previously named Washington Park Skate Spot, will ensure funding for future design and construction of skate spots throughout the City. Skate spot locations will be prioritized based on public outreach meetings and Council direction. We anticipate that per capita Prop 68 funds could be used to supplement this project.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Park Development  $‐      $‐      $1,000,000    $1,000,000    $1,000 ,000

JIM STONE AQUATIC FACILITY EXPANSION

This project proposes to expand and modernize the Jim Stone Pool including, but not limited to, the construction of a new competition pool, warm up pool, splash pad, locker rooms, concession area, meeting and office spaces.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Park Development  $4,315,970     $3,939,000    $‐      $‐      $‐

MULTIPURPOSE ARTIFICIAL TURF FIELDS

This project will construct a multipurpose, multisport, artificial turf field. The project will provide a space for community sports such as softball, baseball, kickball, ultimate frisbee, lacrosse, football, and soccer. It will allow for additional practice and game space, allow the City to accommodate larger sports tournaments thereby increasing revenue, and provide an alternate location to host sporting activities while other fields rest. The artificial turf will also allow for year round rentals, increasing revenue. Park locations will be prioritized through a series of public meetings and with Council direction.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Park Development  $‐      $‐      $1,000,000    $1,000,000    $1,000 ,000

PARK BALL FIELD

The City's youth leagues continue to grow, as does the need for additional practice and game space. The current little league fields are at capacity and cannot accommodate additional use. The Ball Field Project will provide funding to construct a new ball field in Mountain View Park.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Park Development  $‐      $‐      $350,000    $350,000    $350,000

NEW
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CITY MURALS

This Project will provide funding for new Murals located through o u t   t h e   c i t y .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Public Art   $100,000    $100,000    $100,000    $100,000    $100,00 0

PUBLIC ART INSTALLATIONS

This project is intended to fund new public art throughout the City of Escondido including but not limited to monuments, sculptures, structures, statues, digital art, and mos a i c s .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Public Art  $200,000    $46,800    $44,300    $40,200    $36,100

EVCC BACK-UP GENERATOR

The EVCC is defined as a cool zone in our City’s Continuity of Operations Plan (COOP). Escondido is surrounded by terrain that creates a very high fire hazard. SDG&E’s current plans to reduce fire danger in very high fire hazard areas is to strategically employ preventative grid shutdowns, referred to as Public Safety Power Shutoffs (PSPS). In 2020, areas of Escondido were affected by SDG&E’s PSPS due to high wind events.  In November of 2019, we applied for a Public Safety Power Shutoff (PSPS) Resiliency grant allocation through Cal OES to fund a generator at the PW Yard and EVCC. Unfortunately, we did not receive the gra nt. Installing a new CARB compliant backup generator at the EVCC will ensure that the City meets the obligations outlined in the City’s COOP for these critical e m e r g e n c y   f u n c t i o n s .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Public Facility Fees  $200,000     $‐      $‐      $‐      $‐

PUBLIC ART

PUBLIC WORKS
NEW
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PUBLIC WORKS YARD RELOCATION

This project supports the future relocation of the Public Works Yard. The new facility will be sized to meet current and future maintenance demands of the City. Project components will include site selection, acquisition, environmental documentation, and design for the future site. This project implements a component of the Comprehensive Economic Development Strategy (CEDS) that identifies the current yard site as a high priority area t a r g e t e d   f o r   r e d e v e l o p m e n t .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Public Facility Fees  $2,906,130    $2,829,600    $2,771,600    $2, 675,000    $2,578,400

BEAR VALLEY PARKWAY AT SUNSET/RANCHITO

Funding is provided in FY22/23 for the City's share of costs associated with the widening of the east side of Bear Valley Parkway from the southerly limit of the Wohlford Residential project to Sunset/Ranchito, in accordance with the Development Agreement approved for this project.  The development project will add one north‐bound lane on Bear Valley Parkway from Sunset/Ranchito to the City limits at Cholla Canyon.  Future year funding is proposed to design and construct the widening of the south‐bound lanes of Bear Valley Parkway from the City limits at Cholla Canyon to the southerly City limits south of Su n s e t / R a n c h i t o .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Traffic Impact   $575,000      $1,856,690    $1,250,000    $‐    $‐

BRIDGE MAINTENANCE

To preserve the long‐term condition of the City's 34‐bridges, preventative maintenance, including deck maintenance, joint seal replacement and railing repairs are required. This project designates a budget to perform preventative maintenance at the highest priority locations, based on condition rating. Staff will pursue Caltrans bridge program funding, where available, to perform maintenance  and address required repairs.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax  $‐      $‐      $100,000    $150,000    $200,000

STREETS
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Section 1  ‐  Page 6

CITRACADO PARKWAY EXTENSION

This project extends Citracado Pkwy from Harmony Grove Village Pkwy to Andreasen Dr. and will construct new pavement, streets, curb and gutter, center medians, landscaping, traffic signals, a bridge over Escondido Creek, and utility infrastructure. The project will be administered by City staff with Construction Management support by consultant. Construction of the project will be performed by the awarded contractor. Budget will be adjusted to i n c l u d e   i n t e r e s t   e a r n e d   o n   P P H   D i s t r i c t   E s c r o w   a c c o u n t .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Traffic Impact   $2,300,000      $100,000    $100,000    $100,000    $100,000

COMPREHENSIVE ACTIVE TRANSPORTATION STRATEGY & IMPLMENTATION

A Comprehensive Active Transportation Strategy (CATS) evaluates current infrastructure and demand to develop a well‐connected active transportation network. The CATS will evaluate trail, bike lane and sidewalk connectivity to ensure that limited resources are used to improve the highest priority facilities. Funds budgeted in FY24 through FY27 are included as matching funds for grant applications for the highest priority projects identified in the CATS.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Transnet   $250,000    $250,000    $400,000    $600,000    $600,000

EAST VALLEY PKWY & MIDWAY DRAINAGE IMPROVEMENTS

This project will build a new storm drain system and upsize the existing system to remove structures and roadways from the floodplain.  The FEMA floodplain areas along East Valley Parkway, between Ash and Citrus, and along Midway Drive, between Bear Valley Parkway and Lincoln Avenue will be studied to determine necessary improvements.  The preliminary drainage study estimates the cost of improving all seven drainage systems at $34.7‐million.  The City is seeking a grant to cover 75% or more of the costs of the project.  The funds programmed are intended to serve as a grant match.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax   $500,000    $700,000    $700,000    $1,000,000    $1,000,0 00 Storm Drain   $302,950    $84,100    $78,800    $69,800    $60,900 Transnet   $2,200,000    $1,150,000   $1,000,000    $69,800    $60,9 00 Total Costs   $3,002,950   $1,934,100   $1,778,800    $1,069,800     $1,060,900

ESCONDIDO CREEK TRAIL BIKE PATH IMPROVEMENTS

This project closes gaps on approximately 2.5 miles of the Escondido Creek Trail Bike Path by adding lighting, pedestrian signals, crosswalks, ramps, and signage to seven intersections.  The project's construction limits are Escondido Creek Trail Bike Path between Juniper Street and Citrus Avenue, and is fully funded with a state ATP g r a n t .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Transnet   $250,000   $‐       $‐       $‐       $‐

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FELICITA & JUNIPER/ESCONDIDO BLVD TO CHESTNUT

The first phase of this project widens Juniper Street between Felicita Avenue and Chestnut Street with Active Transportation Program grant (Juniper Safe Routes to School Project) and Transnet funding. This phase is expected to be constructed during FY22/23. The second phase of the project will widen Felicita Avenue from Escondido Boulevard to Juniper Street. Construction to include new pavement, curbs and gutters, sidewalks, and t r a f f i c   s i g n a l   m o d i f i c a t i o n s .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Traffic Impact   $‐      $‐      $450,000    $500,000    $1,400,000 Transnet   $50,000    $‐      $‐      $600,000    $1,400,000 Total Costs   $50,000    $‐       $450,000    $1,100,000    $2,800,00 0

LA HONDA DRAINAGE

City's participation with La Honda Drive drainage improvements as required by Tract 920 Development Agreement (Henry Ranch Partnership) in order to prevent flooding of adjoining area.  Developer to construct re‐ enforced, box‐concrete system on La Honda Drive from El Norte Parkway through an easement to Nightingale Place and on Nightingale Place to Lincoln Avenue.  Upon completion drainage assets will be dedicated to the City.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Storm Drain   $200,000    $200,000    $200,000    $200,000    $200,0 00

LED STREETLIGHTS CONVERSIONS

This project provides funding to convert high pressure and low pressure sodium street lights to light emitting diode (LED). LED provides a whiter light that appears brighter and provides a truer color rendering. Conversion to LED results in savings both in maintenance and energy costs.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax  $300,000    $300,000    $300,000    $‐      $‐

LINCOLN PARKWAY WIDENING

This project updates the Specific Alignment Plan and widens Lincoln Parkway/Avenue between Garrick Way and Fig Street.  The project is expected to include medians, sidewalks, bike lanes, and improvements to the i n t e r s e c t i o n   a t   L i n c o l n / F i g .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Traffic Impact   $750,000     $671,510    $1,128,000    $2,244,400    $1,260,700 Transnet   $‐      $‐      $‐    $707,000    $‐
Total Costs   $750,000    $671, 510    $1,128,000    $2,951,400    $1 ,260,700

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PAVEMENT MAINTENANCE & REHABILITION

This annual project provides for the maintenance and repair of City streets.  Work is focused in one of eight residential zones each year.  Resurfacing of Major and Collector streets is performed Citywide based on pavement condition. Work includes subgrade repairs, asphalt replacement and seal coating.  In addition, the project repairs lifted sidewalks and stripes bike lanes on resurfaced streets in accordance with the Bicycle Master Plan.  In order to increase the City's PCI to above 70, a budget of $9.5 million would be needed based on recent significant i n f l a t i o n .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Transnet ‐Maint   $1,396,800     $1,449,000    $1,491,300    $1,536, 600    $1,376,400 Transnet ‐Rehab   $938,707    $1,331,000    $1,429,700    $1,678,40 0    $1,899,600 RMRA Funds   $3,779,782    $3,551,400    $3,586,200    $3,621,000    $3,655,800 Total Funded   $6,115,289   $6, 331,400   $6,507,200   $6,836,000   $ 6,931,800 Unfunded   $3,384,711   $3,168,600   $2,992,800   $2,664,000   $2,568,200 Total Costs   $9,500,000    $9,500,000  $9,500,000  $9,500,000  $9,500,000

STORM DRAIN REPAIR AND IMPROVEMENTS

There are over 15 miles of corrugated metal storm drain pipe (CMP) within the City. The majority of this pipeline is beyond its service life. This project designates funding for repair and improvement of priority drainage facilities, including deteriorated storm drains and failing channels, as well as to make improvements to drainage facilities to e x t e n d   t h e i r   s e r v i c e   l i f e .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax   $1,158,350    $1,198,200    $1,142,700    $1,137,200    $1,131,600 Street Fund   $39,950    $15,000    $14,700    $14,300    $13,900 Total Costs   $1,198,300    $1,213,200    $1,157,400    $1,151,500    $1,145,500

STREET TREE MAINTENANCE

With the completion of the Urban Forest Inventory, the need for tree maintenance exceeds the capacity of the City Tree Crew. The city has over 53,000 trees to maintain. At present there are over 360 trees needing immediate removal, approximately 33,000 trees needing pruning/maintenance, over 3,000 new trees to plant, and approximately 300 tree stumps to be removed. An annual tree maintenance contract would significantly improve the health of the City's Urban Forest.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax   $105,000    $105,000  $105,000  $105,000   $105,000

TRAFFIC INFRASTRUCTURE

This project includes installation of signage, striping and other traffic‐related infrastructure Citywide.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax   $127,000    $127,000    $127,000    $127,000    $127,000

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TRAFFIC SIGNAL COMMUNICATION PROJECT

This project installs a high speed communication system for the City's traffic signals that will improve operation.

The projects supports installation of upgraded signal controllers and controller cabinets that are more responsive, provide more data to support operational improvements, and will allow deployment of technology to support the u l t i m a t e   b u i l d ‐ o u t   o f   t h e   C i t y .

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax   $50,000    $50,000    $50,000    $50,000    $50,000 Public Facility Fees   $500,000    $360,000    $360,000    $360,000     $360,000 Total Costs   $550,000    $410, 000   $410,000   $410,000   $410,000

TRAFFIC SIGNALS AND SIGNAL IMPROVEMENTS

This project is for construction of new signals and modification of existing signals Citywide.  Grant match funding is provided for the top three ranked projects that address the top 20 locations identified in the Local Roadway Safety Plan.  These projects include funding to construct a signal at Centre City Parkway and Brotherton and for improvements to the Washington and Rose traffic signal.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Transnet   $1,100,000    $650,000    $650,000    $‐      $‐ Traffic Impact   $1,162,255     $350,000    $‐      $‐      $‐ Total Costs   $2,262,255    $1,000,000     $650,000    $‐      $‐

TRANSFER TO GENERAL FUND

Transfer to General Fund ‐ Street Maintenance Department.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax   $2,055,000    $2,055,000    $2,055,000    $2,055,000    $2,055,000

TRANSPORTATION & COMMUNITY SAFETY

This is an annual budget designated for the Transportation and Community Safety Commission to select traffic safety and traffic calming projects.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Gas Tax   $50,000    $50,000    $50,000    $50,000    $50,000

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ALLEY UTILITIES REPLACEMENT PROJECT

Replacement of sewer lines located in alleys between Centre City Parkway and Quince Street, and between Grand Avenue and 11th Avenue.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $‐      $2,000,000    $2,000,000    $‐      $‐

CITYWIDE STORM DRAIN MAINTENANCE

The City is required to conduct annual inspections and cleaning/maintenance of its storm conveyance system infrastructure including inlets, catch basins, pipes, and curb  and gutter. Funds provide equipment and staff costs to remove and dispose of trash, debris, sediment, and leaves and properly document and report on these City activities related to pollution prevention. New requirements to install trash screens in storm drains will increase maintenance and staff costs in future Fiscal Years. The project is overseen by the Environmental Programs Division and implemented by the Public Works Department.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $900,000     $1,000,000    $1,050,000    $1,050,000    $1,050,000

EAGLE SCOUT LAKE MAINTENANCE

Eagle Scout Lake in Kit Carson Park provides value to the community as a park water feature and as a sediment detention basin to improve downstream water quality. The City completed major dredging project in 2014 and periodic maintenance since then. FY 2022/23 activities include minor maintenance and planning for future lake improvements including design of bank stabilization and easier maintenance locations upstream of the lake.

Environmental Programs Division staff oversee the project and coordinate maintenance with Public Works and Engineering.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $235,000     $60,000    $10,000    $10,000    $10,000

WASTEWATER UTILITIES
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HABITAT REMEDIATION-SPRUCE ST.

This projects corrects drainage problems in the Spruce Street storm water conveyance channel. Grading variances, non‐native plants, and sediment deposits led to standing water in the upper channel, functioning as habitat for breeding mosquitoes and presenting water quality concerns. The City has worked since 2013 to redesign the channel (within existing constraints) and complete CEQA and environmental permitting. The City secured grant funding totaling $638,500 from County Vector Habitat Grant and $258,000 from State Proposition 1 funds. After project completion (2020) minor maintenance and monitoring will be needed until the site is incorporated into the Permitted Channel Maintenance CIP (#807502). The Environmental Programs Division is leading this effort in coordination with Engineering.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $75,000    $‐       $‐      $‐      $‐

HARRF INFLUENT PUMP STATION

The existing Influent Pump Station was built in 1973 and is in need of rehabilitation and expansion to meet the needs of the City and San Diego wastewater flows. The work would be designed and constructed by outside vendors.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater    $31,200   $‐      $‐      $‐      $‐

MANHOLE REHABILITATION

On‐going rehabilitation program for City's sew manholes to include lining of manholes to prevent damage from sewage gases, shelf repair/replacement, and ring assembly raising.  This program is bid out on a 5‐year schedule.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $69,880    $20,000     $20,000      $20,000       $20,0 00

PERMITTED CHANNEL MAINTENANCE & MITIGATION

Permits for channel maintenance were issued in August 2015.  Since then City staff have been maintaining the channels and have completed the project in Kit Carson to mitigate the impacts of maintenance to wetland habitat.

The permit will be renewed and hopefully expanded to additional locations in 2020; significant efforts to prepare the renewal application are underway. The permit renewal may require additional wetland mitigation, along with monitoring and maintenance activities for existing mitigation areas. This CIP includes staff time and equipment to continue maintenance work.   The project is funded through the wastewater fund.  Environmental Programs Division oversee the project and coordinate maintenance with Public Works.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater  $400,000    $400,000    $400,000    $400,000    $400,000

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TRASH CAPTURE DEVICES

The San Diego Regional Municipal Separate Storm Sewer System (MS4) Permit from the Regional Water Quality Control Board will be renewed in 2020 to include new regulations to capture and remove trash from storm drain systems. The new requirements will install screens in storm drains in certain land uses (commercial, industrial, high density residential) and include a ten‐year compliance timeframe. The Environmental Programs Division works closely with Engineering and Public Works to implement this new program, and Public Works performs maintenance under the MS4 Maintenance CIP (807601).

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $100,000    $250,000    $250,000    $250,000    $250,00 0

TRUNK MAIN EXPANSION/AUTO PKWY TO HARRF

Replace the sewer trunk main from the area of the Public Works Yard and Auto Pkwy to HARRF.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $6,000,000    $4,000,000     $1,000,000    $‐      $‐

WASTEWATER TREATMENT PLANT MAJOR MAINTENANCE PROJECTS

Replace the sewer trunk main from the area of the Public Works Yard and Auto Pkwy to HARRF.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Wastewater   $833,960    $50,000     $50,000     $50,000     $50,000

ALLEY UTILITIES REPLACEMENT PROJECT

Replacement of water lines located in alleys between Centre City Parkway and Quince Street, and between Grand Avenue and 11th Avenue.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Water   $300,000    $2,000,000    $2,000,000     $‐      $‐

WATER UTILITIES
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LAKE WOHLFORD DAM PROJECT

Lake Wohlford Dam was originally constructed in 1895, and enlarged in 1924.  The existing Lake Wohlford Dam has been determined to have the potential to liquefy during a large seismic event. The Lake Wohlford Dam Project will replace the existing dam with a new dam immediately downstream.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 WIFIA Loan   $ 65,147,350  $‐    $‐      $‐      $‐

WATER PIPELINE REPLACEMENT

Replace old and deteriorating water pipes within the distribution system to maintain quality service.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Water   $769,830    $50,000      $50,000     $50,000     $50,000

WATER TREATMENT PLANT MAJOR MAINTENANCE PROJECTS

Major maintenance activity and equipment procurement at the Escondido‐Vista Water Treatment Plant.

Funding Source   FY 2022/23  FY 2023/24  FY 2024/25  FY 2025/26  FY 2026/27 Water   $790,720    $50,000      $50,000     $50,000     $50,000

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PRELIMINARY CAPITAL PROJECT
BUDGET REQUESTS BY FUND

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This fund was created to account for transactions related to general‐type capital projects.  The funding for these expenditures is typically received through interfund transfers from the City’s General Fund. General capital funding consists of remaining General Capital Fund balances from closed projects plus proportional shares of the interest earned on the City’s portfolio.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
46,610    61,710    101,210    139,510    176,710
AMERICAN DISABILITIES ACT   25,000    ‐      ‐      ‐      ‐ TOTAL GENERAL CAPITAL
FUNDED PROJECT REQUESTS
25,000     ‐      ‐      ‐      ‐
GENERAL CAPITAL FUND
REMAINING BALANCE
21,610   61,710   101, 210   139,510    176,710

This fund was established to account for transactions related to the acquisition of park land and the development of recreational facilities.  Funding is received from Park Development Fees collected from developers of residential projects at a rate of $6,849.30 per single family residential dwelling unit and $6,533.10 per multi‐family residential dwelling unit.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
4,315,970    3,939,000    3,872,600    3,762,000    3,651,300 11TH AVENUE PARK  ‐   ‐      1,000,000    1,000,000    1,000,000 ATHLETIC FIELD LIGHTS NEW  ‐   ‐      522,600    412,000    301,300 CITY SKATE PARKS  ‐   ‐      1,000,000    1,000,000    1,000,000 JIM STONE AQUATIC FACILITY
EXPANSION NEW
4,315,970   3,939,000    ‐      ‐      ‐
MULTIPURPOSE ARTIFICIAL
TURF FIELD
‐   ‐      1,000,000    1,000,000    1,000,000
PARK BALL FIELD  ‐   ‐      350,000    350,000    350,000 TOTAL PARK DEVELOPMENT
FUND PROJECT REQUESTS
4,315,970  3,939,000  3,872,600  3,762,000  3,651,300
PARK DEVELOPMENT FUND
REMAINING BALANCE
‐  ‐  ‐  ‐  ‐

GENERAL CAPITAL FUND

PARK DEVELOPMENT FUND
Attachment "1"
364
Item18.

Section 2  ‐  Page 16

This fund was established to account for expenditures that promote and provide public art throughout the City.

Public art fees are assessed at a rate of $0.30 per square foot when building permits are issued for both residential and commercial development projects.  For details of potential exceptions to this fee, refer to the City’s “Fee Guide for Development Projects.”
LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
403,700    250,500    248,000    243,900    239,800
CITY MURALS     100,000    100,000    100,000    100,000    100,000 PUBLIC ART INSTALLATIONS
NEW
200,000    46,800    44,300    40,200    36,100
TOTAL PUBLIC ART FUND
PROJECT REQUESTS
300,000    146,800    144,300    140,200    136,100
PUBLIC ART FUND
REMAINING BALANCE
103,700    103,700    103,700    103,700    103,700

This fund was created to account for developer fees that ensure public facility standards, established by the City, are met with respect to additional needs that are created as the result of growth and development in the City. The current Public Facility Fees are assessed as follows: $4,969.99 per dwelling unit; $2.25 per sq. ft. of Commercial building area, $1.70 per sq. ft. of Industrial building area.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
3,856,130    3,439,600    3,381, 600    3,285,000    3,188,400 EVCC BACK‐UP GENERATOR
NEW
200,000    ‐      ‐      ‐      ‐
LIBRARY CIRCULATING

MATERIALS
250,000    250,000    250,000    250,000    250,000
PUBLIC WORKS YARD

RELOCATION
2,906,130    2,829,600    2,771,600    2,675,000    2,578,400 TRAFFIC SIGNAL
COMMUNICATION PROJECT
500,000    360,000    360,000    360,000    360,000
TOTAL PUBLIC FACILITIES
FUND PROJECT REQUESTS
3,856,130    3,439,600    3,381, 600    3,285,000    3,188,400 PUBLIC FACILITIES FUND
REMAINING BALANCE
‐      ‐      ‐      ‐      ‐

PUBLIC ART FUND

PUBLIC FACILITIES FUND
Attachment "1"
365
Item18.

Section 2  ‐  Page 17

This fund was established to account for revenue received from a gasoline excise tax of 18 cents per gallon of fuel under Sections 2105, 2106, 2107, and 2107.5 of the Streets and Highways Code.  In July 2010, Proposition 42 funding, which was state sales tax on the sale of gasoline, was “swapped” for a gasoline excise tax under Section 2013 of the Streets and Highways Code.  This amount is indexed annually by the California State Board of Equalization (BOE) in order to ensure the new excise tax keeps pace with the revenues that were expected from the sales tax on gasoline and changes the overall excise tax on gasoline on an annual basis.    All resources are legally restricted for street‐related expenditures within the public right‐of‐ways.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
4,295,350    4,535,200    4,579, 700    4,624,200    4,668,600 BRIDGE MAINTENANCE   ‐      ‐      100,000    150,000    200,000 EAST VALLEY PKWY &
MIDWAY DRAINAGE

IMPROVEMENTS
500,000    700,000    700,000     1,000,000    1,000,000 LED CONVERSIONS   300,000    300,000    300,000    ‐      ‐ STORM DRAIN REPAIR AND

IMPROVEMENTS
1,158,350    1,198,200    1,142,700    1,137,200    1,131,600 STREET TREE MAINTENANCE   105,000    105,000    105,000    105,000    105,000 TRAFFIC INFRASTRUCTURE   127,000    127,000    127,000    127,000    127,000 TRANSFER TO GENERAL
FUND (STREET

MAINTENANCE)
2,055,000    2,055,000    2,055,000    2,055,000    2,055,000 TRANSPORTATION &
COMMUNITY SAFETY
50,000    50,000    50,000    50,000    50,000
TOTAL GAS TAX FUND
PROJECT REQUESTS
4,295,350    4,535,200    4,579, 700    4,624,200    4,668,600 GAS TAX FUND REMAINING

BALANCE
‐      ‐      ‐      ‐      ‐

GAS TAX
Attachment "1"
366
Item18.

Section 2  ‐  Page 18

This fund was established to account for revenue allocated to the City based on  section 2031 of the Streets & Highway Code and the Road Repair and Accountability Act of 2017  (SB1 Beall). These revenues come from an additional 12 cent per gallon increase to the gasoline excise tax and additional 20 cent per gallon increase to the diesel fuel excise tax effective November 1, 2017. In addition a "Transportation Improvement Fee" was added to vehicle registrations beginning January 1, 2018.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
3,779,782    3,551,400    3,586, 200    3,621,000    3,655,800 PAVEMENT MAINTENANCE
FY23 NEW
3,779,782    3,551,400    3,586,200    3,621,000    3,655,800 TOTAL STREET FUND
PROJECT REQUESTS
3,779,782    3,551,400    3,586, 200    3,621,000    3,655,800 RMRA FUND REMAINING

BALANCE
‐      ‐      ‐      ‐      ‐

This fund was generated from General Fund balances remaining in  street projects that were constructed during prior years plus its proportional share of the interest earned on the City’s portfolio.  It is also used to account for street‐related reimbursements received from other agencies.  These funds are designated by the City to be used only for street‐related construction, improvements, and right‐of‐way acquisitions.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
39,950    15,000    14,700    14,300    13,900
STORM DRAIN REPAIR AND

IMPROVEMENTS
39,950    15,000    14,700    14,300    13,900
TOTAL STREET FUND
PROJECT REQUESTS
39,950    15,000    14,700    14,300    13,900
STREET FUND REMAINING

BALANCE
‐      ‐      ‐      ‐      ‐

ROAD MAINTENANCE AND REHABILITATION ACCOUNT

STREET FUND
Attachment "1"
367
Item18.

Section 2  ‐  Page 19

This fund was established to account for fees collected from developers to ensure that the storm water drainage infrastructure meets the requirements established by the City’s Drainage Master Plan. The current Drainage Facility Fees are assessed as follows: $1,113.84 per dwelling unit, $460.02 per dwelling unit for multifamily development and all other uses $0.72 per sq. ft. of building roof area.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
536,456    351,106    379,306    403,806    428,406
EAST VALLEY PKWY &
MIDWAY DRAINAGE

IMPROVEMENTS
302,950    84,100    78,800    69,800    60,900
LA HONDA DRAINAGE   200,000    200,000    200,000    200,000    200,000 TOTAL STORM DRAIN FUND
PROJECT REQUESTS
502,950    284,100    278,800    269,800    260,900
STORM DRAIN FUND
REMAINING BALANCE
33,506  67,006  100,506  134,006  167,506

This fund was established to account for fees collected from developers to ensure accelerated circulation improvements required as a result of growth and new development .  For a Traffic Impact Fee schedule, see City Council Resolution No. 2008‐10R.  Beginning July 1, 2008 this fund will also account for the Regional Transportation Congestion Improvement Program (RTCIP) in compliance with the TransNet Extension Ordinance, as administered by SANDAG.  A $2,533.15 traffic fee for each residential unit from each residential building permit issued will be collected.  These Regional Traffic Impact Fees can only be spent on eligible improvements to the Regional Arterial System (RAS) in SANDAG’s 2030 Regional Transportation Plan.  An annual SANDAG audit of these revenues and expenditures will be completed.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
4,787,255    2,978,200    2,928, 000    2,844,400    2,760,700 BEAR VALLEY PKWY
WIDENING AT

SUNSET/RANCHITO
575,000    1,856,690    1,250,000    ‐   ‐
CITRACADO PKWY

EXTENSION
2,300,000     100,000  100,000   100,000    100,000
FELICITA &
JUNIPER/ESCONDIDO BLVD
TO CHESTNUT
‐      ‐      450,000    500,000    1,400,000
LINCOLN PARKWAY
WIDENING NEW
750,000    671,510   1,128,000    2,244,400   1,260,700

STORM DRAIN FUND

TRAFFIC IMPACT FUND
Attachment "1"
368
Item18.

Section 2  ‐  Page 20

TRAFFIC SIGNALS AND
SIGNAL IMPROVEMENTS
1,162,255     350,000   ‐     ‐     ‐
TOTAL TRAFFIC IMPACT
FUND PROJECT REQUESTS
4,787,255  2,978,200  2,928,000  2,844,400  2,760,700
TRAFFIC IMPACT FUND
REMAINING BALANCE
‐      ‐      ‐      ‐      ‐

This fund was established to account for transactions related to the San Diego Transportation Improvement Program Ordinance and Expenditure Plan (TransNet) administered by the San Diego Association of Governments (SANDAG).  TransNet allocations are funded by a one‐half of one percent Transaction and Use Tax, which was established in 1987 under Proposition‐A and extended by voters in November 2004.  All resources are legally restricted to expenditures for street, pedestrian, and bicycle transportation programs.  SANDAG develops and monitors projects, in addition to allocating funds, as part of a continuous comprehensive regional transportation planning program.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
PROJECTED AVAILABLE

BALANCE
6,185,507    4,830,000    4,971, 000    5,122,000    5,276,000 COMPREHENSIVE ACTIVE
TRANSPORTATION STRATEGY
250,000    250,000    400,000    600,000    600,000
ESCONDIDO CREEK TRAIL
BIKE PATH IMPROVEMENTS
250,000    ‐      ‐      ‐      ‐
EAST VALLEY PKWY &
MIDWAY DRAINAGE

IMPROVEMENTS
2,200,000  1,150,000  1,000,000  ‐  ‐
FELICITA &
JUNIPER/ESCONDIDO BLVD
TO CHESTNUT
50,000    ‐      ‐      600,000    1,400,000
LINCOLN PARKWAY
WIDENING NEW
‐      ‐      ‐    707,000    ‐
PAVEMENT MAINTENANCE
AND REHABILITATION
2,335,507    2,780,000    2,921,000    3,215,000    3,276,000 TRAFFIC SIGNALS   1,100,000   650,000    650,000    ‐      ‐ TOTAL TRANSNET FUND
PROJECT REQUESTS
6,185,507  4,830,000  4,971,000  5,122,000  5,276,000
TRANSNET FUND
REMAINING BALANCE
‐      ‐      ‐      ‐      ‐

TRANSNET FUND
Attachment "1"
369
Item18.

Section 2  ‐  Page 21

This fund was established to account for transactions related to the San Diego Transportation Improvement Program Ordinance and Expenditure Plan (TransNet) administered by the San Diego Association of Governments (SANDAG).  TransNet allocations are funded by a one‐half of one percent Transaction and Use Tax, which was established in 1987 under Proposition‐A and extended by voters in November 2004.  All resources are legally restricted to expenditures for street, pedestrian, and bicycle transportation programs.  SANDAG develops and monitors projects, in addition to allocating funds, as part of a continuous comprehensive regional transportation planning program.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
ALLEY UTILITIES
REPLACEMENT PROJECT
‐      2,000,000    2,000,000    ‐      ‐
CITY WIDE STORM DRAIN

MAINTENANCE
900,000    1,000,000    1,050,000    1,050,000    1,050,000 EAGLE SCOUT LAKE

MAINTENANCE
235,000    60,000    10,000    10,000    10,000
HABITAT REMEDIATION‐
SPRUCE ST
75,000   ‐  ‐  ‐  ‐
HARRF INFLUENT PUMP

STATION
31,200   ‐  ‐  ‐  ‐
MANHOLE REHABILITATION   69,880    20,000      20,000      20,000      20,000 PERMITTED CHANNEL
MAINTENANCE AND

MITIGATION
400,000    400,000    400,000    400,000    400,000
TRASH CAPTURE DEVICES   100,000    250,000    250,000    250,000    250,000 TRUNK MAIN
EXPANSION/AUTO PKWY TO
HARRF
6,000,000    4,000,000    1,000,000     ‐      ‐
WASTEWATER TREATMENT
PLANT MAJOR MAINT

PROJECTS
833,960    50,000      50,000      50,000      50,000
TOTAL CUSTOMER FEES  8,645,040  7,780,000  4,780, 000  1,780,000  1,780,0000 TOTAL WASTEWATER FUND
PROJECT REQUESTS
8,645,040  7,780,000  4,780, 000  1,780,0000  1,780,0000

WASTEWATER CAPITAL PROJECTS FUND
Attachment "1"
370
Item18.

Section 2  ‐  Page 22

This fund was created to account for capital projects associated with the construction and maintenance of the City’s water distribution system.  The water utilities system is financed and operated in a manner similar to a private enterprise with construction and maintenance costs financed or recovered primarily through charges for services.  These revenues are recorded in the Water Utilities Operating Fund and then transferred to the Water Capital Projects Fund when projects are budgeted.

LIST OF PROJECTS BY FUND  PROPOSED
FY 2022/23
FORECAST FY
2023/24
FORECAST FY
2024/25
FORECAST FY
2025/26
FORECAST FY
2026/27
LAKE WOHLFORD DAM
(WIFIA LOAN)
65,147,350   ‐   ‐      ‐      ‐
TOTAL  LOANS  65,147,350  ‐  ‐  ‐  ‐
ALLEY UTILITIES
REPLACEMENT PROJECT
300,000    2,000,000    2,000,000   ‐  ‐
WATER PIPELINE

REPLACEMENT
769,830    50,000      50,000     50,000  50,000
WTP MAJOR MAINT

PROJECTS
790,720    50,000      50,000     50,000  50,000
TOTAL CUSTOMER FEES   1,860,550    2,100,000   2, 100,000   50,000       50,000 TOTAL WATER FUND
PROJECT REQUESTS
67,007,900   2,100,000  2, 100,000   50,000      50,000

WATER CAPITAL PROJECTS FUND
Attachment "1"
371
Item18.

Unfunded Infrastructure Projects
# Department Project Project Cost
1 Community Services Build new Multi-use, Multigenerational Community Center/Library/Service Hub. New Center: 1 CS Supervisor II/III, 1 Recreation Coordinator, 6 Recreation Leader II (recreation staff only, mot include library, BM) $50,000,000 2 Community Services
Mountain View Park Historic Property Restoration: This project will restore the historic Field House property located at Mountain View Park to arrest the damage that decades of deferred maintenance have caused and transform the space into an agricultural museum and event space that will celebrate and educate current and future visitors about the history and agricultural roots of historic Escondido.
$1,250,000
3 Community Services
The Kit Carson Amphitheater is a hidden gem within the City of Escondido’s Kit Carson Park. This full-service performance venue boasts a beautiful outdoor setting and is conveniently located near Westfield North County Mall, restaurants, public transportation and the 15 freeway. Improving the 42,000 square foot Amphitheater will create an opportunity to provide valuable community programs, services and activities that the City would otherwise not be able to provide. $1,500,000
4 Community Services Construction of a new 2,400 square foot multipurpose community meeting room at the Escondido Sports Center. The project will also include restrooms, storage, and a kitchenette. $1,500,000 5 Community Services Installation of an 18,000 square foot batting cage facility (nine cages) in Kit Carson Park, including all associated equipment. $300,000
6 Community Services
Daley Ranch Trail Alignment and Habitat Restoration Project: Daley Ranch is a 3,201-acre conservation area managed in perpetuity for the preservation of a biologically unique and diverse habitat area of regional importance. This project will dramatically improve trail alignment, restore habitat, and allow native flora and fauna to return to this area. $500,000
7 Engineering
Lining of Corrugated metal pipelines (Cat 1-4) Citywide to avoid rusting and sinkholes. Condition assessment estimate cost at $40-M @ 20 yr. life. Curren budget include approximately $900,000 per year toward this effort, so resulting shortfall is $22-million over 20-years
$22,000,000
8 Engineering Fix Top 20 Hot Spots Identified in the Local Roadway Safety Plan. Includes protected left turns at 10 locations, 2 signals, 1 roundabout, and 7 intersection improvements $12,000,000 9 Engineering
Centre City Parkway & Brotherton Signal: This project installs a new signal at Centre City Parkway and Brotherton Rd. to support closure of the left turn access from South Escondido Blvd. There have been numerous fatal accidents at this location, so this project will improve safety by eliminating left turn movement across this former State highway. $1,500,000
10 Engineering Escondido Gateway Improvements: The Escondido Gateway Improvements relieve congestion, calm traffic, and improve safety. Phase I: Gamble to Fig / $7-million and Phase II: Lincoln/Ash roundabout / $ 2-million $9,000,000 11 Engineering
Grand Avenue Vision Plan: The Grand Avenue Vision project will widen sidewalks through a road diet to accommodate outdoor dining and pedestrian activity in our historic downtown. Additional funding, in the amount of $6,000,000, would widen an additional block of sidewalk, build two traffic circles and add festoon lighting for two additional blocks to the project scope.
$6,000,000
12 Engineering Build 12 roundabouts. $2-million/each location $24,000,000 Attachment "2"
372
Item18.

Unfunded Infrastructure Projects
# Department Project Project Cost
13 Engineering Install 2 MW of solar panels $3,000,000
14 Engineering Safety Routes to School Improvements. Fill sidewalk gaps and build green corridors near schools on Citrus, Rose, Ash and Redwood. 2.75-miles of sidewalk gaps within walkshed of Hidden Valley MS, Rose Elem, Rincon M.S., Felicita Elem. $12,500,000 15 Engineering Midway Drainage Improvements. Remove Midway/Valley area from floodplain (Goldenrod, Fern, Erica, Daisy & Maywood). Hundreds of homes/businesses would no longer have to pay flood insurance and could improve property $34,000,000 16 Engineering Install 8.3-miles of sidewalk. Curb, gutter, and sidewalk only. No retaining walls. $2.5-million/mile $20,750,000 17 Engineering Install 30 miles of bike lanes. Slurry and re-stripe. No widening. $9,800,000 18 Engineering EV Charging Stations: 30 at PAFH and 281 in park and rides. Assumes stations at park and rides would be installed by private venture $300,000
19 Public Safety Hubbard Hill Fire Suppression System: installation of a chemical fire suppression system to protect emergency communications infrastructure at Hubbard Hill $100,000
20 Public Safety
Additional storage for vehicles and equipment at existing facilities. Add facilities before demand outpaces current services.

Investment in facilities to gain efficiencies and long-term costs savings: Covered parking with solar panels, conversion of carpeted floors to polished concrete.
$1,300,000
21 Public Safety
The Escondido Fire Department Training Tower is an integral part of ongoing training necessary for all firefighters to maintain skills and abilities. The training tower is approaching 13 years old and is in need of extensive refurbishmentIn order to maintain the tower and prevent greater repair cost in the future, the following preventative maintenance is necessary: Ice Blasting and repainting all rusted surfaces $45,000.00, Replace rusted out window frames and repaint $20,000.00, Repair and replace all defective lighting $5,000.00, Repair of the out-of-service water clarification system for the underground water storage cistern $15,000.00.
$150,000
22 Public Safety
In 2017 the Fire Department’s station alerting system was upgraded with new central processing units at each fire station and the dispatch center. However, due to budget constraints the old components, such as message signs, room remotes and interface devices, were not replaced and are now over 13 years old. These components are starting to fail and they will not be supported (software and firmware) beyond 2022. New upgraded alerting system components will enable further enhancements to emergency alerting and communication.
$315,000
23 Library Renovate current library; add study rooms and collaborative spaces with needed equipment; add computer lab; and replace FFE; Add 1-2 FTE positions for strategic services $14,000,000 24 Library Add 2nd Library Location; Add ~15 FTE for up to 20,000 sq ft location $20,400,000 25 Library Mobile Van (bookmobile and outreach service) $100,000 26 Library Library Book vending machines (2 locations) $600,000 27 Planning General Plan Update, update every 10 years: Preparing a new GP will help us stay current and create a vision for the City's identity over time (current 20-yr cycle) $3,000,000 Attachment "2"
373
Item18.

Unfunded Infrastructure Projects
# Department Project Project Cost
28 Planning / Parks 11th Avenue Park Master Plan: Enable construction of 11th Ave Park $300,000 29 Planning / Parks El Caballo Park Master Plan MND: Provide environmental clearance for existing El Caballo Park Master Plan $125,000 30 Planning / Parks Jesmond Dene Park Master Plan: Enable and streamline installation of improvements at Jesmond Dene Park $300,000 31 Planning / Parks Mountain View Park MasterPlan: Enable and streamline installation of improvements at Mountain View Park $300,000 32 Planning / Parks Rod McLeod Park MasterPlan: Enable and streamline installation of improvements at Rod McLeod Park $300,000 33 Planning / Parks Washington Park Master Plan: Enable and streamline installation of improvements at Washington Park $250,000 34 Planning / Parks Escondido Creek Trail Master Plan: Update/complete Creek Trail Master Plan and environmental review $300,000 35 Planning / Parks Kit Carson Park Master Plan: Update KCP Master Plan including environmental review (likely EIR) $500,000 36 Planning / Parks Update/Complete GDP Master Plan: Enable and streamline installation of improvements in Grape Day Park $300,000 $252,540,000
Attachment "2"
374
Item18.

KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP
5/25/2022
PRESENTATION: Award Presentation for the Annual Water Awareness Poster Contest PRESENTATION: Award Presentation to the HARRF staff for winning the CWEA Plant of the Year PRESENTATION: City Efforts on Homelessness
CONSENT CALENDAR - (J. PROCOPIO) - APPROVAL OF THE FINAL ASSESSMENT ENGINEER'S REPORT FOR THE LMD - Request the City Council Adopt Resolution No. 2022-26 approving the Assessment Engineer's Report and the annual levy and collection of assessments for Zones 1-38 of the City of Escondido Landscape Maintenance District ("LMD") for Fiscal Year (FY) 2022/2023.

CONSENT CALENDAR - (J. PERPETUA) - APPROVAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE OFFICER SEAN P. DAVIDSON - It is requested that the City Council adopt Resolution No. 2022-XX, approving the California Public Employees' Retirement System (CalPERS) Industrial Disability Retirement for Police Officer Sean P. Davidson
CONSENT CALENDAR- (A. FINESTONE) - OUT-OF-AGENCY SEWER SERVICE AGREMEENT- it is requested that the City Council adopt Resolution 2022-52 authorizing staff to process an Out-of-Agency Sewer Service Agreement for connections to the City’s sewer system, and to process an Irrevocable offer of Annexation CONSENT CALENDAR - (J. AXELROD) - SAN DIEGUITO RIVER PARK JEPA AMENDMENT - REQUEST THE CITY COUNCIL APPROVE RESOLUTION 2022-58

AUTHORIZING AN AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT REGARDING BOARD ALTERNATES CONSENT CALENDAR - NOTICE OF COMPLETION FOR THE 2021 STREET REHABILITATION AND MAINTENANCE PROJECT – PHASE 2 CONSENT CALENDAR - CITY OF ESCONDIDO LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT – FINAL ENGINEER’S REPORT FOR ZONES 1-38 FOR FISCAL YEAR 2022/2023.

CURRENT BUSINESS - (J. PROCOPIO) - APPROVAL OF THE LOCAL ROADWAY SAFETY PLAN FOR UPCOMING CALTRANS GRANTS CURRENT BUSINESS - (COUNCILMEMBER MORASCO) - It is requested that the City Council consider and provide direction to staff on the preparation of a ballot measure for the November 2022 general election to set term limits for all elected city representatives.

CURRENT BUSINESS - (COUNCILMEMBER MORASCO) - It is requested that the City Council consider and provide direction to staff on (1) any proposed modifications to the current language in the Escondido Municipal Code relating to the City Treasurer’s position and/or salary including, but not limited to, the potential to achieve financial savings, and (2) if required, the preparation of a ballot measure for the November 2022 general election related to the City Treasurer position and/or salary.

WORKSHOP - (C. HOLMES) - PENSION OBLIGATION BOND WORKSHOP - Request the City Council receive information on Pension Obligation Bonds and authorize staff to initiate the process of seeking court validation to issue bonds, including preparation of the necessary documents for Council approval July 13 6/8/2022
CONSENT CALENDAR - (C. MCKINNEY) - AMENDMENT TO CONSULTING AGREEMENT FOR EAGLE SCOUT LAKE BRIDGE PROJECT - Request the City Council adopt Resolution No. 2022-60, authorizing an amendment in an amount of $120,000.00 to the consulting agreement with Kleinfelder, Inc. for the Eagle Scout Lake Bridge Project (“Project”) in Kit Carson Park. The amendment will provide funding for additional permitting services in support of design and construction of the Project.

PUBLIC HEARING - (C. HOLMES) - ADOPTION OF THE FISCAL YEAR 2022/23 OPERATING BUDGET - It is requested that City Council adopt Resolution No. 2022-xx approving the Fiscal Year 2022/23 Annual Operating Budget. It is also requested that City Council adopt Resolution 2022-xx approving the Appropriations Limit (Gann Limit) for Fiscal Year 2022/23.

PUBLIC HEARING - (C. HOLMES) - FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM AND PROJECT BUDGETS FOR FY 2022/23 - It is requested that City Council approve Resolution 2022-xx adopting the FYs 2022/23-2026/27 Five Year Capital Improvement Program and FY 2022/23 Project Budgets; and Resolution No. 2022-xx adopting the Regional Transportation Improvement Program for FYs 2022/23-2026/27.

CURRENT BUSINESS - (Z. BECK) - BOARDS AND COMMISSIONS SUBCOMMITTEE UPDATE -Request the City Council receive and file an update from the Boards and Commissions Subcommittee.

CURRENT BUSINESS - (J. PROCOPIO) - ADOPTION ORDINANCE 2022-10 - UPDATES TO CALIFORNIA VEHICLE CODE SECTION 22358.8 TO RETAIN EXISITING SPEED

LIMITS ON CERTAIN STREET SEGMENTS

377
Item19.