Escondido City Council
March 4, 2026

325
Item13.

Consolidated Plan Escondido 127
OMB Control No: 2506-0117 (exp. 09/30/2021)
SP-80 Monitoring – 91.230
Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
HOME Projects/Programs: All sub-recipients or CHDOs are evaluated as part of the pre-award assessment, in conformance with HOME Final Rule requirements. Prior to the disbursement of HOME funds to any entity, the City shall enter into a written agreement with the entity, which remains in effect for the length of affordability, ensuring compliance with all applicable statutes and regulations. All CHDOs, sub-recipients, projects, and programs funded by HOME are monitored during all project phases to ensure compliance with all requirements, the HOME Final Rule, and the City’s HOME monitoring procedures.

CDBG Projects/Programs: Recipients of CDBG funding (sub-recipients) are required to enter into written agreements with the City prior to receipt of CDBG funds. The agreements govern the activities of sub- recipients and specify regulations and conditions under which funds will be provided. Additionally, agreements define the purpose and nature of services and projects and where they will be provided, the tasks to be performed, the level of service to be offered in quantifiable units, performance measurements, and a project implementation schedule within a defined contract period.

The City will also monitor all CDBG projects and program activities on an ongoing basis to ensure compliance with HUD regulations and City policies, facilitate timely completion of projects and provide opportunities for dialogue with sub-recipients. Monitoring strategies will include on-site field visits, telephone calls, review of financial records, quarterly review of agency performance reports, and the provision of technical assistance as needed. Annual site visits will be conducted for all CDBG program sub-recipients.

ESG Programs: If the City receives ESG funds during the 2025 to 2029 period, recipients of ESG funds (sub-recipients) would enter into agreements with the City before receiving ESG funds. Agreements will govern the activities and specify regulations and conditions under which funds will be provided. The City would monitor the provider(s) administering ESG funds, via site visits, conference check-ins, and reviewing required reports to ensure consistency with the Continuum of Care HUD requirements.

Resolution No. 2026-33
Exhibit "A"

326
Item13.

Consolidated Plan Escondido 128
OMB Control No: 2506-0117 (exp. 09/30/2021)
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City of Escondido is a HOME participating jurisdiction and a CDBG entitlement jurisdiction. The funding is determined by a formula calculated by HUD based on population, people in poverty, overcrowded units, population growth lag since 1960, and pre-1940 housing units.

The City’s allocation can fluctuate year-to-year causing funding to increase or decrease in various programs.

On May 13, 2025, HUD announced the City will receive $1,341,561 in CDBG funds, $590,369 in HOME funds, and $0 in ESG funds for FY 2025-

26. The total amount of anticipated federal funds for FY 2025-26 is $1,931,930. The City of Escondido was not awarded ESG funding in FY 2022- 23, FY 2023-24, FY 2024-25, and FY 2025-26, and it is uncertain if the City will be receiving funding in future years. The City does not receive funding under the HOPWA program. Program income will be reprogrammed into allowable programs or projects, as identified during the Action Resolution No. 2026-33
Exhibit "A"

327
Item13.

Consolidated Plan Escondido 129
OMB Control No: 2506-0117 (exp. 09/30/2021)
Plan process.

Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 1,341,561.00 0.00 85,756.65 1,427,317.65 5,200,000.00 It is estimated that the
City will receive a CDBG
allocation of
approximately $6,500,000
over the five years of the
Consolidated Plan based
on past and current
funding.

Resolution No. 2026-33
Exhibit "A"

328
Item13.

Consolidated Plan Escondido 130
OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources: $
Total:
$
HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner
rehab
Multifamily
rental new
construction
Multifamily
rental rehab
New
construction for
ownership
TBRA 590,369.00
50,000.00 4,505,812.99 5,146,181.99 2,361,476.00
It is estimated that the
City will receive a HOME
allocation of
approximately $2,900,000
over the five years of the
Consolidated Plan based
on past and current
funding.

Resolution No. 2026-33
Exhibit "A"

329
Item13.

Consolidated Plan Escondido 131
OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources: $
Total:
$
ESG public -
federal
Conversion and
rehab for
transitional
housing
Financial
Assistance
Overnight
shelter
Rapid re-housing
(rental
assistance)
Rental
Assistance
Services
Transitional
housing 0.00

0.00 0.00 0.00 0.00
It is unknown whether the
City will receive an ESG
allocation over the five
years of the Consolidated
Plan.

Table 5459 - Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The housing, community development, and homeless needs far exceed the available HOME, CDBG, and ESG funding. A variety of other non- federal funding sources, including grants and state funds, will be leveraged to meet as many needs in the City as possible.

Matching HOME requirements will be satisfied with other eligible financial resources and/or in-kind services. The City will continue to seek these Resolution No. 2026-33
Exhibit "A"

330
Item13.

Consolidated Plan Escondido 132
OMB Control No: 2506-0117 (exp. 09/30/2021)
funding sources.

CDBG does not require matching funds.

If the City receives ESG funds during the 2025 to 2029 period, the 100 percent match requirement for ESG funds would be satisfied with resources from service providers.

Resolution No. 2026-33
Exhibit "A"

331
Item13.

Consolidated Plan Escondido 133
OMB Control No: 2506-0117 (exp. 09/30/2021)
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City is evaluating publicly owned land for future affordable housing opportunities. As part of the 2021 Housing Element update, the Planning Department analyzed potential housing sites, including City- owned properties, for their suitability for affordable housing. While no specific sites have been identified yet, the City continues to explore viable options.

Discussion
Please see above.

Resolution No. 2026-33
Exhibit "A"

332
Item13.

Consolidated Plan Escondido 134
OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Create and
preserve
affordable rental
housing
2025 2029 Affordable
Housing
City of
Escondido
Develop/preserve
affordable rental &
owner units
HOME:
$290,000.00
Rental units constructed: 6
Household Housing Unit
Rental units rehabilitated:
1 Household Housing Unit
2 Create and
preserve
affordable
ownership housing
2025 2029 Affordable
Housing
City of
Escondido
Develop/preserve
affordable rental &
owner units
HOME:
$290,000.00
Homeowner Housing
Added: 2 Household
Housing Unit
Direct Financial Assistance
to Homebuyers: 1
Households Assisted
3 Expand access to
homeless services
2025 2029 Homeless City of
Escondido
Expand access to
homelessness
services
CDBG:
$50,000.00
Other: 50 Other
4 Improve the
livability of
neighborhoods
2025 2029 Non-Housing
Community
Development
Neighborhood
Groups
CDBG Eligible
Areas
Support
Neighborhood
Revitalization
CDBG:
$1,128,000.00
Public Facility or
Infrastructure Activities
for Low/Moderate Income
Housing Benefit: 2000
Households Assisted
Other: 200 Other
Resolution No. 2026-33
Exhibit "A"

333
Item13.

Consolidated Plan Escondido 135
OMB Control No: 2506-0117 (exp. 09/30/2021)
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
5 Deliver supportive
services
2025 2029 Non-Homeless
Special Needs
City of
Escondido
Expand access to
homelessness
services
CDBG:
$200,000.00
Public service activities for
Low/Moderate Income
Housing Benefit: 200
Households Assisted
Table 5560 – Goals Summary

Goal Descriptions

1 Goal Name Create and preserve affordable rental housing Goal Description
2 Goal Name Create and preserve affordable ownership housing Goal Description
3 Goal Name Expand access to homeless services
Goal Description
4 Goal Name Improve the livability of neighborhoods
Goal Description
5 Goal Name Deliver supportive services
Goal Description

Resolution No. 2026-33
Exhibit "A"

334
Item13.

Consolidated Plan Escondido 136
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

335
Item13.

Consolidated Plan Escondido 137
OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
AP-35 Projects – 91.220(d)
Introduction
The City of Escondido Housing and Neighborhood Services Division will serve as the lead agency in the administration of all CDBG and HOME projects proposed in this plan. The City will contract with local nonprofit agencies and organizations to administer fair housing and some public services, in addition to administering most programs and projects directly. Any contract agencies (subrecipients) will be responsible for program implementation and all performance will be monitored by the City of Escondido.

Projects
# Project Name
1 2025 HOME Admin
2 CDBG Administration
3 Public Services
4 Capital Improvements
5 Neighborhood Revitalization
6 CHDO
7 Senior Rental Subsidy
8 First Time Home Buyer Assistance
Table 5661 – Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
needs
Allocation priorities for CDBG and HOME funds were made based on the Housing Needs Assessment, Market Analysis, and the Community Needs Assessment Survey. The City’s First Time Homebuyer Program provides down payment and/or closing cost assistance to households earning up to 80 percent Area Median Income (AMI). The program provides a deferred payment loan for the lesser of 5 percent of the purchase price up to $25,000 and the maximum set purchase price for a new or existing home in San Diego County. Due to high interest rates, low loan amounts, and limits on maximum purchase price, it has been difficult finding eligible households who qualify for this program. City staff will continue to evaluate the program, look for opportunities to make improvements, work with local banks, and educate the community about these resources. The City recognizes this program is important for low-to- Resolution No. 2026-33
Exhibit "A"

336
Item13.

Consolidated Plan Escondido 138
OMB Control No: 2506-0117 (exp. 09/30/2021)
moderate income households who are trying to pursue homeownership and will continue to explore the program in more depth.

Resolution No. 2026-33
Exhibit "A"

337
Item13.

Consolidated Plan Escondido 139
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
Resolution No. 2026-33
Exhibit "A"

338
Item13.

Consolidated Plan Escondido 140
OMB Control No: 2506-0117 (exp. 09/30/2021)
1 Project Name 2025 HOME Admin
Target Area City of Escondido
Goals Supported Create and preserve affordable rental housing Create and preserve affordable ownership housing
Needs Addressed Develop/preserve affordable rental & owner units Funding HOME: $59,036.00
Description 2025 HOME Administrative Costs
Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
N/A
Location Description
Planned Activities Administration of HOME Program.
2 Project Name CDBG Administration
Target Area Neighborhood Groups
CDBG Eligible Areas
City of Escondido
Goals Supported Expand access to homeless services
Improve the livability of neighborhoods
Deliver supportive services
Needs Addressed Expand access to homelessness services
Support Neighborhood Revitalization
Supportive services-with low to mod & special need
Funding CDBG: $268,312.20
Description CDBG Admin
Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
N/A
Location Description City of Escondido
Planned Activities Administrative
Project Name Public Services
Resolution No. 2026-33
Exhibit "A"

339
Item13.

Consolidated Plan Escondido 141
OMB Control No: 2506-0117 (exp. 09/30/2021)
3 Target Area Neighborhood Groups
CDBG Eligible Areas
City of Escondido
Goals Supported Expand access to homeless services
Improve the livability of neighborhoods
Deliver supportive services
Needs Addressed Expand access to homelessness services
Support Neighborhood Revitalization
Supportive services-with low to mod & special need
Funding CDBG: $201,234.15
Description Public services will benefit residents with low to moderate incomes through basic needs, legal aid, clinical and supportive services.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
Approxiamately 250 low-to-moderate income families.

Location Description Citywide
Planned Activities  Fair Housing
 Senior CARES
 Mobile Recreation
 Mama's Kitchen
 Project Next
 Palomar Family Counseling Service
 The Alabaster Jar Project
 Operation Hope

4 Project Name Capital Improvements
Target Area Neighborhood Groups
CDBG Eligible Areas
City of Escondido
Goals Supported Improve the livability of neighborhoods Needs Addressed Support Neighborhood Revitalization
Funding CDBG: $508,000.00
Resolution No. 2026-33
Exhibit "A"

340
Item13.

Consolidated Plan Escondido 142
OMB Control No: 2506-0117 (exp. 09/30/2021)
Description Public facilities improvements
Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
These projects are anticipated to serve approximately 1,000 low-to- moderate income families.

Location Description Citywide
Planned Activities  Sidewalk Infill
 Urban Corps Escondido Recycling ADA Restroom Expansion  Historic Structure Assessments
5 Project Name Neighborhood Revitalization
Target Area Neighborhood Groups
CDBG Eligible Areas
City of Escondido
Goals Supported Improve the livability of neighborhoods Deliver supportive services
Needs Addressed Support Neighborhood Revitalization
Supportive services-with low to mod & special need
Funding CDBG: $364,000.00
Description Improve the livability of neighborhoods through education, outreach, and the beautification/enhancement of neighborhoods.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
Serve approxiamately 3,000 low-to-moderate income households.

Location Description Citywide
Planned Activities  WeeCare
 Neighborhood Cleanups
6 Project Name CHDO
Target Area City of Escondido
Goals Supported Create and preserve affordable rental housing Create and preserve affordable ownership housing
Needs Addressed Develop/preserve affordable rental & owner units Resolution No. 2026-33
Exhibit "A"

341
Item13.

Consolidated Plan Escondido 143
OMB Control No: 2506-0117 (exp. 09/30/2021)
Funding HOME: $88,555.00
Description 15% Annual set aside for affordable development by a CHDO Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
15% or $88,555.35 will be reserved for CHDOs, or Community Housing Development Organizations. These are HUD-certified nonprofit developers. CHDO activities can include acquisition or rehabilitation of housing, new construction, or direct assistance to low-income homebuyers.

Location Description City of Escondido.

Planned Activities 15% or $88,555.35 will be reserved for CHDOs, or Community Housing Development Organizations. These are HUD-certified nonprofit developers. CHDO activities can include acquisition or rehabilitation of housing, new construction, or direct assistance to low-income homebuyers.
7 Project Name Senior Rental Subsidy
Target Area City of Escondido
Goals Supported Create and preserve affordable rental housing Needs Addressed Develop/preserve affordable rental & owner units Funding HOME: $388,00072,000.00
Description The Cityâ¿¿s Senior Rental Subsidy Program, will provide up tp $4200 per month in rental assistance to 830 extremely low and low income senior households, totaling $38872,000 annually.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
830 very low and low-income seniorshouseholds.

Location Description City of Escondido
Planned Activities The City’s =Senior Rental Subsidy Program, will provide up to $4200 per month in rental assistance to 830 extremely low and low income senior households, totaling $73882,000 annually.
8 Project Name First Time Home Buyer Assistance
Target Area City of Escondido
Goals Supported Create and preserve affordable ownership housing Resolution No. 2026-33
Exhibit "A"

342
Item13.

Consolidated Plan Escondido 144
OMB Control No: 2506-0117 (exp. 09/30/2021)
Needs Addressed Develop/preserve affordable rental & owner units Funding HOME: $50,000.00
Description First-Time Home Buyer's Program offers up to $25,000 in down payment or closing cost assistance to eligible low-income households.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
2 low-income families at $25,000 each.

Location Description City of Escondido

Planned Activities First-Time Home Buyer's Program will offer up to $25,000 in down payment or closing cost assistance to eligible low-income households.

Resolution No. 2026-33
Exhibit "A"

343
Item13.

Consolidated Plan Escondido 145
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed HOME: The City of Escondido will allocate HOME funding based on the quality and quantity of applications, as well as their alignment with the priorities and goals outlined in the Consolidated Plan, rather than on a geographic basis. While funding is available citywide, areas in the older, central core may receive particular focus; however, no specific target areas have been designated.

CDBG: CDBG funds will be directed to low- to moderate-income census tracts and neighborhood group areas, where needs are most concentrated. The City currently has 18 priority Neighborhood Groups, 17 of which are in low- to moderate-income census areas. These Neighborhood Groups are primarily older areas located in or near the city's central core.

Geographic Distribution
Target Area Percentage of Funds
Neighborhood Groups
CDBG Eligible Areas
City of Escondido
Table 5762 - Geographic Distribution

Rationale for the priorities for allocating investments geographically Not applicable. Please see discussion above.

Discussion
Not applicable. Please see discussion above.

Resolution No. 2026-33
Exhibit "A"

344
Item13.

Consolidated Plan Escondido 146
OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
In addition to federal funding, the City will continue to seek additional funding sources to support as many Escondido households as possible.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 74
Special-Needs 0
Total 74
Table 5864 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 830
The Production of New Units 40
Rehab of Existing Units 3
Acquisition of Existing Units 0
Total 1273
Table 5965 - One Year Goals for Affordable Housing by Support Type Discussion
Note that the one (1) household to be provided first-time homebuyer assistance is not included in Table AP-55.02.

The City of Escondido was awarded a $590,369 HOME grant in 2025. Combined with previous year HOME funds, the City will release an RFP for the provision of long-term affordable rental housing or first-time homebuyer opportunities in 2025.

Resolution No. 2026-33
Exhibit "A"

345
Item13.

Consolidated Plan Escondido 147
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing – 91.220(h)
Introduction
There are no public housing units located in the City of Escondido, and the City is not a considered a public housing authority. The Housing Authority of the County of San Diego (HACSD) administers the rental assistance program and Housing Choice Voucher Program (commonly referred to as Section 8) for Escondido residents.

The City of Escondido’s public housing needs are addressed by the Housing Authority. The City supports the County in their efforts to address the needs of low-income households in Escondido. City staff educates community members of the program and helps them apply for benefits by directing them to the County’s webpage. One Housing & Neighborhood staff person attended a Housing Quality Standards (HCV) training and has become certified. Having this knowledge of the program and housing requirements will better support the residents of Escondido.

Housing subsidies and ongoing rental assistance programs like Housing Choice Vouchers are critical to provide housing stability and wellness for extremely low and low-income households. The need is high, and waitlists are long. As a result, many applicants are unable to access this important resource. The City of Escondido currently offers a shallow subsidy program to 830 householdsseniors who are severely rent burdened who are living in mobile homes and apartments. One condition of the program is to be on the Section 8 waitlist. The subsidy is currently up to $4200 per month and is funded through Successor Housing Agency and the HOME funds.

Actions planned during the next year to address the needs to public housing The City of Escondido’s public housing needs are addressed by HACSD. The City supports the HACSD in their efforts to address the needs of low-income households in Escondido.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Although the City of Escondido is not a public housing authority, the HACSD represents residents of Escondido. The County has established a public housing resident advisory board for county public housing developments and Housing Choice Voucher Program participants.

If the PHA is designated as troubled, describe the manner in which financial assistance will be Resolution No. 2026-33
Exhibit "A"

346
Item13.

Consolidated Plan Escondido 148
OMB Control No: 2506-0117 (exp. 09/30/2021)
provided or other assistance
N/A
Discussion
Please see above.

Resolution No. 2026-33
Exhibit "A"

347
Item13.

Consolidated Plan Escondido 149
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Addressing homelessness is one the City’s top priorities. According to the 2024 Point-in-Time Count, the City had 588 unduplicated individuals experiencing homelessness (sheltered & unsheltered) in the City of Escondido. The City saw a 32 percent increase in the unsheltered population of 401 compared to 304 unduplicated individuals counted in the previous year. The City Council voted in March 2023 to create a Homelessness Ad Hoc Subcommittee. The Subcommittee has met numerous times to discuss important topics.

The City received $2.26M in HOME-ARP funds to support homeless services. The City Council conditionally approved a plan to fund supportive services and housing solutions. Additionally, the City participates in regular meeting with the Regional Task Force on Homelessness (RTFH).

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The Escondido Police Department’s Community Oriented Policing and Problem-Solving Unit (COPPS) contracts with a licensed mental health clinician to provide outreach and intensive care coordination with unhoused individuals living on the streets in Escondido. The COPPS Unit and Public Works Team conduct outreach and encampment cleanups with other nonprofit service providers and CalTrans multiple times a week.

Addressing the emergency shelter and transitional housing needs of homeless persons The City anticipates awarding Operation HOPE ($30,000) to provide services aimed at preventing homelessness for approximately 150 households who reside in Escondido and are at risk of homelessness. Alabaster Jar Project ($33,000) advocates stable home placements to victims of human trafficking.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were Resolution No. 2026-33
Exhibit "A"

348
Item13.

Consolidated Plan Escondido 150
OMB Control No: 2506-0117 (exp. 09/30/2021)
recently homeless from becoming homeless again
The City anticipates awarding Operation HOPE ($30,000) to provide services aimed at preventing homelessness for approximately 150 households who reside in Escondido and are at risk of homelessness. Alabaster Jar Project ($33,000) advocates stable home placements to victims of human trafficking.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
The City has funded various homelessness prevention programs through the use of ESG, ESG-CV, and CDBG-CV dollars. Since the City is not a recipient of ESG funds for FY 2025-2026, we will be looking creatively to other funding streams to fill this gap.

Discussion
The City recognizes that homelessness is a priority and is taking actionable steps to combat this problem.

Resolution No. 2026-33
Exhibit "A"

349
Item13.

Consolidated Plan Escondido 151
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

Both market and governmental factors can pose constraints to the provision of adequate and affordable housing. Two of the greatest barriers to affordable housing continue to be cost and supply. As demonstrated in the 2025-2029 Consolidated Plan, there is a great need for affordable housing in Escondido. The City of Escondido will continue to remove any barriers to affordable housing possible by implementing a Housing Element in conformance with State law, and by reducing development and cost constraints to developing housing when possible. The City will continue to use available funding to mitigate.

The City anticipates creation and adoption of an affordable housing trust fund in early to mid 2026 that would establish and facilitate in lieu fees for affordable units under qualifying events. Such funding would then be leveraged to create or fund affordable units.

The City recently completed a pre-approved accessory dwelling unit (ADU) program that provides pre- approved plans for ADU construction to both streamline review and reduce costs to de facto affordable units.

The City continues to offer impact fee deferral as an option through the building permit process to reduce impediments to development of housing projects, both affordable and market rate.

The City is working on a comprehensive development review study and streamlining program to ensure the development review pipeline for development projects, including housing, is as efficient and standardized to reduce review, permit approval, and construction times.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City of Escondido does experience barriers to affordable housing as identified in the 2025-2029 Consolidated Plan, including governmental constraints, market conditions, lack of funding sources, and land and construction costs. Many of the barriers are not controlled by the City, such as land and construction costs and state/federal constraints.

The City of Escondido recently updated its Housing Element. The City will follow up on any governmental constraints to housing development that are identified in the Housing Element, including appropriate amendments to the Zoning Code. Additionally, the City continues to monitor zoning and development regulations, environmental requirements, and development processes, and will implement the Resolution No. 2026-33
Exhibit "A"

350
Item13.

Consolidated Plan Escondido 152
OMB Control No: 2506-0117 (exp. 09/30/2021)
streamlined permit process required by State law.

The City approved its East Valley Specific Plan in July 2023, which will help to comprehensively assess and address housing development at all levels in Escondido.

The City will also continue to use available funding, including its HOME allocation, to assist first-time homebuyers and provide additional affordable housing help to mitigate some barriers to affordable housing. The City continues to work with developers to assist them in providing as much affordable housing as possible.

Discussion:

Please see above.

Resolution No. 2026-33
Exhibit "A"

351
Item13.

Consolidated Plan Escondido 153
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
Introduction:

This section discusses the City’s underserved needs and institutional structure for delivering housing and community development activities, as identified in the 2025-2029 Consolidated Plan.

Actions planned to address obstacles to meeting underserved needs The City hopes to meet the goals of building affordable housing and assisting with homeownership. The City will release an RFP for the provision of long-term affordable rental housing or first-time homebuyer opportunities. Additionally, City staff will work with banks, community members, and nonprofit organizations to learn more about the barriers to homeownership and update the design of the First Time Homebuyer Program.

The City approved the East Valley Specific Plan in July 2023 and now has a certified Housing Element with HCD.

Actions planned to foster and maintain affordable housing When the affordability period of an existing affordable housing project is nearing the end, the City works with the owners of the project to try to extend the regulatory agreements and the affordability period, to maintain the City’s affordable housing stock. The City has several options available to assist in preserving affordability. The City maintains a list of affordable rental housing and provider resources to provide to the public upon inquiry.

Actions planned to reduce lead-based paint hazards
HUD requires all CDBG and HOME-funded activities to comply with HUD’s lead-based paint regulations.

The City of Escondido is committed to addressing lead-based paint hazards. Federal law requires lead- based paint disclosure and education prior to leasing, renting, selling or purchasing most pre-1978 housing. The City will follow disclosure and warning requirements about lead-based paint, including the incorporation of the “Protect Your Family from Lead in your Home” pamphlet in all applicable housing programs. The City will conduct required lead-based paint-related activities for all HOME-funded activities under title X regulations, such as notification, paint testing, risk assessment, hazard reduction or abatement, and clearance. All abatement activities will be performed by a certified professional. The City will also send staff to EPA-compliance lead-based paint hazard training, when possible.

Actions planned to reduce the number of poverty-level families The City will implement its 5-year Strategic Plan, including a strategy to reduce the number of families living at or below the poverty level. The anti-poverty strategy includes economic development programs Resolution No. 2026-33
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to increase business opportunities, business retention, employment marketability, job training, and connection to jobs and opportunities. The strategy also includes an increase of affordable housing opportunities, rapid rehousing, and homelessness prevention programs. Activities will be focused on the urban core, but also in the remainder of CDBG-eligible areas in the City. Efforts will be coordinated with other agencies and nonprofit organizations as much as possible.

Actions planned to develop institutional structure
The City's Housing and Neighborhood Services Division will ensure compliance with HUD entitlement grants. It will develop and implement ways to increase the operational efficiencies of HUD programs through enhanced coordination, technical assistance, and effective oversight. The Housing and Neighborhood Services Division will continue to work on a consistent basis with other departments within the City, other government agencies, non-profit groups, and private industry, in addition to the Regional Taskforce on Homelessness (CoC), to coordinate provision of improvements, housing and services to the City’s residents, while administering the CDBG and HOME programs.

Actions planned to enhance coordination between public and private housing and social service agencies
The City will continue to update its list of interested non-profit organizations, affordable housing advocates, CHDOs, public agencies, and community and neighborhood groups to facilitate the best coordination of services. During the Consolidated Plan period, the City will continue to reach out to stakeholders to update progress and any new or changing needs. The City coordinates with many regional groups, including SANDAG, the Regional Task Force on Homelessness, and the San Diego Regional Alliance for Fair Housing (SDRAFFH). The City will continue to be involved with various community groups involved with all aspects of community development, services, and housing, and will assist them in the provision of affordable housing and services to help achieve the goals of the Consolidated Plan.

The Housing and Neighborhood Services Division will work closely with the City’s Economic Development Division to coordinate economic development goals with private industry, social service agencies, and businesses. The Division will also continue to be involved with various community and neighborhood groups to coordinate the provision of community facilities and services.

Discussion:

Please see above.

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0
<TYPE=[text] REPORT_GUID=[A698417B4C924AE0218B42865313DACF] DELETE_TABLE_IF_EMPTY=[YES]>

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00%

HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

City staff will explore what alternative funds can be used, such as Successor Housing Agency funds, Resolution No. 2026-33
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HOME-ARP or grant opportunities to support HOME funds.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The City imposes recapture and resale requirements that comply with HOME Final Rule, 24 CFR

92.254. If a property that is assisted with HOME funds is no longer owner-occupied, is refinanced or is sold, the HOME loan becomes due. Recapture provisions limit the amount to be recaptured to the net proceeds of the sale (sales price minus loan repayment – other than HOME funds – and closing costs). This applies to all units regardless of nature of sale. Recapture funds are re-invested by the City into HOME-eligible activities. Resale provisions require that the PJ ensures the property is sold to another low-income homebuyer who will use the property as his or her principal residence, the original homebuyer receives a fair return on investment (i.e., the homebuyer’s down payment plus capital improvements made to the house), and the property is sold at a price that is “affordable to a reasonable range of low-income buyers.”

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

The City of Escondido imposes recapture and resale requirements that comply with the HOME Final Rule, 24 CFR 92.254. If a property that is assisted with HOME funds is no longer owner-occupied, is refinanced or is sold during the first ten years, the homeowner is responsible for repaying the entire principal amount plus interest to the City. The maximum amount loaned in the first-time homebuyer program will be the lesser of $25,000 or 5 percent of the purchase price requiring an affordability period as outlined by 24 CFR 92.254(a)(4) is ensured. Interest is forgiven after ten years, but repayment of principal is still required. Recapture funds are re-invested by the City into the HELP first-time homebuyer program, housing development, or other HOME-eligible activities.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

None

5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)). <TYPE=[text] REPORT_GUID=[A0BBB986408D8C25582AC4BE59FA99C5]>
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N/A

6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)).

N/A

7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR

92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a).

N/A

Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)

1. Include written standards for providing ESG assistance (may include as attachment)

The City is not receiving funding for the ESG program in FY 2025-26.

2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.

N/A

3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).

N/A

4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions Resolution No. 2026-33
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regarding facilities and services funded under ESG.

N/A

5. Describe performance standards for evaluating ESG.

N/A

N/A
Attachments

Resolution No. 2026-33
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Citizen Participation Comments

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Grantee Unique Appendices

City of Escondido

Citizen Participation Plan for Programs Funded
Under the U.S. Department of Housing and
Urban Development’s Office of Community
Planning and Development

Updated November 2024

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Introduction

Citizen participation is a priority for the City of Escondido (City). The City receives an annual entitlement of Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) funds from the U.S. Department of Housing and Urban Development (HUD) for housing and community development activities to assist people and communities with low to moderate incomes. In accordance with HUD requirements, the City must create a 5-Year Consolidated Plan (Consolidated Plan) that addresses affordable housing and community development needs, submit an Annual Action Plan (Annual Plan) to outline spending and activities for the upcoming program year, and provide a Consolidated Annual Performance and Evaluation Report (CAPER) that summarizes the City’s accomplishments and use of CDBG, HOME and ESG funds in the previous program year. Pursuant to the Code of Federal Regulations (CFR) at 24 CFR 91.105, the City must have and follow a detailed citizen participation plan that specifies the City’s policies and procedures for engaging citizens and encouraging them to participate in creating, evaluating, and implementing these federal entitlement funds.

This Citizen Participation Plan (CPP) serves to meet the federal requirements described above concurrently.

Participation Policies

The City welcomes and encourages public participation in developing relevant plans and reports. Citizen participation is vital throughout the planning process, including identifying needs, setting priorities based on those needs, recommending activities to address high priority needs, and evaluating the success of the programs and activities.

The primary goal of the CPP is to solicit views and recommendations from members of the community, organizations, and other interested parties and to incorporate the views and recommendations in the decision-making process. To accomplish this goal, the CPP mandates that the City will do the following in the development and implementation of the Consolidated Plan, CAPER, and the Assessment of Fair Housing, and/or other statutorily required plan to address fair housing:

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 Encourage participation from community members and residents.

 Encourage the involvement of persons with low to moderate income, particularly those who reside in low-to-moderate communities where funds are proposed to be used.

 Encourage the involvement of persons with disabilities, racial and ethnic minorities, and persons who are non-English speaking and/or have Limited English Proficiency (LEP).

 Encourage participation from organizations and businesses that support people with low to moderate incomes, such as the Regional Task Force on Homelessness/San Diego Continuum of Care (CoC), businesses, developers, nonprofit organizations, philanthropic organizations, community-based and faith-based organizations, resident advisory boards, resident councils, and resident management corporations.

 Provide residents reasonable and timely access to information, meetings, and records.

 Provide residents the opportunity to review, offer input, and give feedback regarding the use of CDBG, HOME, and ESG funds; the Assessments of Fair Housing (AFH), Analyses of Impediments to Fair Housing Choice (AI), or other forms of fair housing planning; and the CAPER.

 Assist persons who are non-English-speaking and/or persons with LEP upon advance request, provided such services are available.

 Use comprehensive techniques to encourage and measure public participation and review program performance.

The City is committed to ensuring that all individuals have equal access to services and programs, including the process to update the Consolidated Plan and its various components. If you need special assistance to participate in a public hearing, please contact our ADA Coordinator at 760-839-4869.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired; please see the City Clerk.

Development of Plans

As an entitlement jurisdiction, the City is required to prepare the following documents:

 A Five-Year Consolidated Plan (Consolidated Plan)

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 An Annual Action Plan

 A Consolidated Annual Performance and Evaluation Report (CAPER)

 AFH, AI, or other forms of fair housing planning

The City will make a concerted effort to notify residents, social service providers, business groups, nonprofit organizations, community and faith-based organizations, community boards and other interested parties of the development of the Consolidated Plan, Annual Plan, AFH, AI, or other forms of fair housing planning, and CAPER through public noticing, including electronic mail, online postings, and newspaper notices.

The City will issue a Notice of Funding Availability (NOFA) and/or Request for Proposals (RFP) inviting proposals for CDBG, HOME and ESG activities. Upon request, the City will provide technical assistance to groups representing persons with low to moderate income to develop proposals for eligible activities.

City staff will review annual grant proposals and make recommendations to the Escondido City Council (City Council) concerning federal funding. City Council meetings are open to the public and available for viewing on the City’s website. City Council agendas are posted 72 hours prior to a meeting and available on the City’s website and at Escondido City Hall (City Hall), 201 N. Broadway, Escondido, CA, 92025.

The City will prepare the Annual Plan, which may contain a list of projects to be funded for the given program year with any additional funding received. During each program year, additional funding may become available due to program income or projects that are under budget, delayed, or cancelled. A list of capital improvement projects may also be included in the Annual Plan and approved by the City Council to serve as back-up projects. The City may initiate these projects at any time when funding becomes available. The City must receive HUD approval for these back-up projects along with the approved and funded projects as part of its approval of the Annual Plan. Initiation and funding of these projects would not constitute a substantial amendment as defined within.

The City will make available any HUD-provided data and other supplemental information it plans to incorporate into its AFH, AI, or other forms of fair housing planning at the start of the public participation process (or as soon as is feasible).

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Prior to adoption of the Consolidated Plan, Annual Plan (Plan(s)), the City will make available the estimated amount of CDBG, HOME, and ESG funding that it expects to receive, the activities that may be undertaken, the estimated amount of funds that will be used to benefit low-moderate income persons, and any activities that may result in displacement.

The City will publish a summary of the proposed Plan(s) and/or AFH, AI, or other forms of fair housing planning in the newspaper and have it available on the City’s website for a period of ten (10) days prior to a public meeting. The summary will describe the contents and purpose of the Plan(s) and/or AFH, AI, or other forms of fair housing planning and include a list of the locations where they may be examined.

The Plan(s) and/or AFH, AI, or other forms of fair housing planning will be available for review at Escondido City Hall, on the City’s website, and at the Escondido Public Library. The City will provide a reasonable number of free copies to citizens and groups upon request.

The City will prepare an annual CAPER to evaluate the progress of the Consolidated Plan and to review accomplishments for the previous program year. Prior to submitting the CAPER to HUD, the public must be noticed, advising of the availability of the CAPER. The CAPER will be available for review at City Hall, on the City’s website, and at the Escondido Public Library. A comment period of not less than 15-days will be provided. All comments received in writing or orally will be included in the final submission to HUD.

Public Hearings

The City aims to hold public meetings at convenient times and locations, ensuring accessibility for persons with disabilities. The City continues to explore new ways to enhance participation and involvement, including the use of online needs assessments and surveys.

The City will meet the following public hearing requirements:

 Conduct at least two public hearings each year to obtain residents’ feedback regarding housing and community development needs, proposed allocation of CDBG and ESG funds, strategies and actions taken to affirmatively further fair housing, review program performance, and approve program/funding activities.

 Conduct at least one public hearing each year regarding the proposed allocation of HOME funds.

HOME funds will be conditionally committed to an affordable housing development only after a public hearing to discuss the project.

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 Conduct at least one public hearing during the development of the AFH, AI, or other forms of fair housing planning prior to publishing for public comment.

 Conduct at least one public hearing during the development of the Consolidated Plan prior to publishing the Consolidated Plan for public comment.

 Receive and consider comments concerning the Plan(s) and/or AFH, AI, or other forms of fair housing planning for a period of not less than 30 days. All comments received, in writing or orally at a public meeting, will be considered in preparing the final Plan(s) and/or AFH, AI, or other forms of fair housing planning. A summary of the comments or views, including those not accepted and the reasons, shall be attached to the final Plan(s) AFH, AI, or other forms of fair housing planning.

Public hearings are held in Escondido City Council Chambers located at City Hall at 201 N. Broadway in Escondido. If you need special assistance to participate in a public hearing, please contact our ADA Coordinator at 760-839-4869. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired; please see the City Clerk.

Public Notices

• Public notices, excluding the CAPER, will be published at least ten days prior to a hearing. Notices will include the date, time, location, and summary of the proposed action to help facilitate informed comments. Notices will be published in the newspaper and announced on the City’s website.

Plan Amendments

The City will amend its approved Plan(s) whenever it makes one of the following decisions:

 To carry out an activity not previously described in the Annual Plan using funds covered by the Consolidated Plan, including program income.

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 To substantially amend the purpose, scope, location, or beneficiaries of an activity.

 To substantially amend the allocation priorities or the method of distributing funds.

A substantial amendment is defined as the following:

 An addition, modification, or elimination of a Consolidated Plan goal.

 An addition of a new activity not previously identified in the Annual Plan.

 A change that affects the funding level of more than $25,000 for projects budgeted at $100,000 or less, or greater than 25 percent of projects budgeted at more than $100,000.

Substantial amendments must be authorized by the City Council and will be available on the City’s website and through public notices in the newspaper. Public notices will be published at least ten days prior to the hearing. Notices will include the date, time, location, and summary of the proposed action to help facilitate informed comments. Minor changes and/or corrections may be made, so long as the changes do not constitute a substantial amendment. Minor changes, including but not limited to modifications of goal outcome indicators, shall not be considered a substantial amendment and do not require public review or a public hearing.

The City will receive and consider comments concerning substantial amendments and/or AFH, AI, or other forms of fair housing planning revisions for period of not less than 30 days. All comments received, in writing or orally at a public meeting, will be considered in preparing the final Plan(s) and/or AFH, AI, or other forms of fair housing planning. A summary of the comments or feedback, including those not accepted and the reasons, shall be attached to the final Plan(s) and/or AFH, AI, or other forms of fair housing planning.

Access to Information and Records

Any citizen, organization, or other interested party may submit written requests for information regarding the Consolidated Plan, Annual Plans, AFH, AI, or other forms of fair housing planning, and Resolution No. 2026-33
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CAPER, including the City’s use of funds under the CDBG, HOME, and ESG programs and the benefit to persons with low-moderate incomes during the preceding five years.

This CPP, the current Consolidated Plan, Annual Plan, AFH, AI, or other forms of fair housing planning, CAPER, and any substantial amendments to these plans are available for public review at City Hall (201 N. Broadway) and on the City’s website.

Technical Assistance

Upon request, the City works with individuals or groups which represent people with lower incomes to develop proposals for funding assistance under the Consolidated Plan programs. City staff provides technical assistance for proposals that strengthen and expand the role of community-based development organizations in planning for eligible activities.

Anti-Displacement

The City strives to avoid and minimize the displacement of individuals due to HUD- funded activities. To the greatest extent possible, the City will consider the impact of displacement in the site selection during the project planning phase and will provide information to displaced individuals on available assistance and relocation benefits.

Prior to approval of any HUD-funded activities with the potential for temporary or permanent displacement of individuals or businesses, the responsible agency (City or private developer) must provide a written plan of action for comparable replacement housing and assistance to displaced households based on the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 (URA), 49 CFR Part 24.

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Comment and Complaint Process

The City will consider any comments from citizens received in writing or orally at public hearings in preparing this CPP, the Consolidated Plan, Annual Plans, CAPERs, AFH, AI, or other forms of fair housing planning, and/or substantial amendments to these plans. A summary of all comments will be attached and submitted to HUD.

The City will respond to written complaints received relating to the Consolidated Plan, Annual Plans, CAPERs, AFH, AI, or other forms of fair housing planning, and/or substantial amendments. Written complaints must describe the objection and provide contact information of the complainant. The City will respond to complaints within 15 working days of receiving the written complaint, acknowledging the letter and identifying a plan of action, if necessary. Correspondence may be addressed to:

City of Escondido
Dulce Salazar
201 North Broadway
Escondido, CA 92025

Persons wishing to contact the Los Angeles Area HUD Office may address correspondence to:

U.S. Housing and Urban Development
Attn: Alexander A. Gonzales
300 North Los Angeles St., Suite 4054
Los Angeles, CA 90012

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Grantee SF-424's and Certification(s)

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HOME-ARP

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Consolidated Plan Escondido 197
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

396
Item13.

Consolidated Plan Escondido 198
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

397
Item13.

Consolidated Plan Escondido 199
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

398
Item13.

Consolidated Plan Escondido 200
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

399
Item13.

Consolidated Plan Escondido 201
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

400
Item13.

Consolidated Plan Escondido 202
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

401
Item13.

Consolidated Plan Escondido 203
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

402
Item13.

Consolidated Plan Escondido 204
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

403
Item13.

Consolidated Plan Escondido 205
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

404
Item13.

Consolidated Plan Escondido 206
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

405
Item13.

Consolidated Plan Escondido 207
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

406
Item13.

Consolidated Plan Escondido 208
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

407
Item13.

Consolidated Plan Escondido 209
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

408
Item13.

Consolidated Plan Escondido 210
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

409
Item13.

Consolidated Plan Escondido 211
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

410
Item13.

Consolidated Plan Escondido 212
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

411
Item13.

Consolidated Plan Escondido 213
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

412
Item13.

Consolidated Plan Escondido 214
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

413
Item13.

Consolidated Plan Escondido 215
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

414
Item13.

Consolidated Plan Escondido 216
OMB Control No: 2506-0117 (exp. 09/30/2021)

Resolution No. 2026-33
Exhibit "A"

415
Item13.

Consolidated Plan Escondido 217
OMB Control No: 2506-0117 (exp. 09/30/2021)
Appendix - Alternate/Local Data Sources

1 Data Source Name
Maplebrook
List the name of the organization or individual who originated the data set.

City of Maplebrook
Provide a brief summary of the data set.

The city conducted a neighborhood planning study of the community.

What was the purpose for developing this data set?
To determine existing community needs.

How comprehensive is the coverage of this administrative data? Is data collection concentrated in one geographic area or among a certain population?
Data is from entire neighborhood.

What time period (provide the year, and optionally month, or month and day) is covered by this data set? 2013-2014 time period
What is the status of the data set (complete, in progress, or planned)? The data set is complete.
2 Data Source Name
Source: ACS, 2018-2022 [Data Series B25123]
List the name of the organization or individual who originated the data set.

American Community Survy 2018-2022
Provide a brief summary of the data set.

What was the purpose for developing this data set?

Provide the year (and optionally month, or month and day) for when the data was collected.

Briefly describe the methodology for the data collection.

Describe the total population from which the sample was taken.

Resolution No. 2026-33
Exhibit "A"

416
Item13.

Consolidated Plan Escondido 218
OMB Control No: 2506-0117 (exp. 09/30/2021)
Describe the demographics of the respondents or characteristics of the unit of measure, and the number of respondents or units surveyed.

Resolution No. 2026-33
Exhibit "A"

417
Item13.

BUDGET ADJUSTMENT

REQUEST
Department: Housing & Neighborhood Services
For Finance Use Only
BA # ____________
Fiscal Year ________
Department Contact: Danielle Lopez X4518
City Council Meeting Date:
(attach staff report) 03/04/2026

EXPLANATION OF REQUEST
This budget adjustment reallocates HOME Program funds to expand the City’s Rental Subsidy Program as approved through the substantial amendment to the 2025 to 2029 Consolidated Plan and the 2025 to 2026 Annual Action Plan.

The current Rental Subsidy Program budget is $72, 000. This request increases the total program budget by $316,000, resulting in a new total budget of $388,000.

The expanded funding will increase the number of households served from 30 to approximately 80 and increase the monthly rental subsidy from $200 to up to $400 per household, with assistance amounts tied to household income level.

There is no impact to the General Fund. The funds represent federal HOME entitlement funds being reprogrammed to prioritize direct rental assistance to low-income households.

BUDGET ADJUSTMENT INFORMATION
Project/Account Description Account Number
Amount of
Increase
Amount of
Decrease
Rental Subsidy Program
HOME-1284 –
GRT: 00299 $316,000
AP

PROVALS

DEPARTMENT HEAD DATE FINANCE DATE








 














Attachment "1"
418
Item13.

STAFF REPORT

March 4, 2026
File Number 0875-55

SUBJECT
PUBLIC HEARING TO CONSIDER A SECOND SUBSTANTIAL AMENDMENT TO THE 2025 -2029 CONSOLIDATED PLAN AND 2025 -2026 ANNUAL ACTION PLAN TO ALLOCATE HOME FUNDS TO AN

AFFORDABLE HOUSING DEVELOPMENT PROJECT

DEPARTMENT
Development Services Department, Housing & Neighborhood Services

RECOMMENDATION
Request the City Council of the City of Escondido conduct a public hearing to receive a report from City staff describing the proposed second substantial amendment to the 2025 -2029 Consolidated Plan and 2025-2026 Annual Action Plan and provide direction.

Staff Recommendation: Approve (Development Services: Kevin Snyder AICP, Director of Development Services)
Presenter: Danielle Lopez, Housing Manager and Norma Olquin, Management Analyst ESSENTIAL SERVICE – No
COUNCIL PRIORITY – Drive Community and Land Development; Financial Stewardship

FISCAL ANALYSIS
As an entitlement city, the City receives an annual formula allocations of HOME Program funding from HUD. There is no direct or indirect impact to the City’s General Fund.

PREVIOUS ACTION
On June 25, 2025, the City Council adopted Resolution No. 2025-69 that approved Fiscal Year (“FY”) 2025- 2029 Consolidated Plan and FY 2025 -2026 Annual Action Plan for the use of CDBG and HOME funds, conditionally committed funds to projects, authorized the Director of Comm unity Development to execute contracts as appropriate and approved the submittal of the FY 2025-2029 Consolidated Plan and the FY 2025-2026 Annual Action Plan to HUD.

On October 15, 2025, the City Council received an update on the HOME Investment Partnership Program (“HOME”) and provided guidance on program changes and directed staff to bring back options to address expiring funds.
419
Item14.

BACKGROUND
HOME is a federal block grant program that provides funding to states and cities to be used exclusively for affordable housing activities to benefit low -income households. Funds for HOME are appropriated annually to the Department of Housing and Urban Development ( “HUD”), which in turn distributes funding to states and cities. The City of Escondido is considered an entitlement jurisdiction and receives an annual allocation from HUD for the operations of its HOME program. The funding is determined by a formula, based on population, age of rental units in the city, and poverty levels.

As a recipient of HOME federal funds, the City is required to submit a five-year Consolidated Plan, and an Annual Action Plan that is required for each year of the Consolidated Plan period. The Consolidated Plan and Action Plan identify the community’s hou sing needs and describes in detail how HOME and other HUD block grant funds will be used to meet those needs. Cities can administer HOME funds themselves, or they can designate public agencies or nonprofit organizations to administer all or part of the HOM E program on their behalf.

The City is required to amend its approved Plan(s) whenever it makes one of the following decisions:

 To carry out an activity not previously described in the Annual Plan using funds covered by the Consolidated Plan;
 To substantially amend the purpose, scope, location, or beneficiaries of an activity; or  To substantially amend the allocation priorities or the method of distributing funds.

A substantial amendment is defined as the following:
 An addition, modification, or elimination of a Consolidated Plan goal;  An addition of a new activity not previously identified in the Annual Plan; or  A change that affects the funding level of more than $25,000 for projects budgeted at $100,000 or less, or greater than 25 percent of projects budgeted at more than $100,000.

Substantial amendments must be authorized by the City Council and must be available for public comment for a 30-day period.

PROPOSED SUBSTANTIAL AMENDMENT
At the October 15, 2025 , City Council Meeting, Housing and Neighborhood Services s taff reported that $348,546.75 in HOME funds from program year 2017 were set to expire in September, 2026. In January, the HUD notified staff of an administrative backlog that resulted in outdated data and inaccurate reporting. The $348,546.75 previously reported had been expended and the correct amount of HOME funds scheduled to expire is $583,938.80.
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OPTIONS
Staff explored several options for the use of the expiring 2018 HOME funds including:

1. Awarding funding to National Core for a n approved but not yet built Affordable Housing Development within the City limits, with the County as the lead agency, in the amount of $3,000,000.

2. Awarding funding to National Core for an approved but not yet built Affordable Housing Development within t he City limits with the County as the lead agency , in the amount of $583,938.80

3. Releasing a city issued Request for Proposals ( “RFP”) for an affordable housing project , in the amount of $8,500,000.

4. Administering a supplemental Rental Subsidy Program in the amount of $583,938.80.

5. Administering a supplemental Rental Subsidy Program in the amount of $3,000,000.

An analysis of these options is included as Attachment “1” to this Staff Report. Additionally, during the discussion segment of the presentation, staff will provide the key considerations, including potential risks and benefits.

Staff recommends awarding the 2018 expiring HOME funds, as well as additional unspent HOME funds to National CORE, for the development of the Valley Creek Project.

The Valley Creek Project, located at East Valley Parkway and Fig Street, a vacant 1.88-acre site owned by the County, will construct a 100% affordable housing project, consisting of 136 dwelling units and various on-site amenities. This development w ill include 136 homes for seniors, with 1 4 apartments set aside specifically for our senior veterans who were homeless or are at risk of becoming homeless. Additionally, they plan to construct tenant improvements and work with Quality Children’s Services ( “QCS”), a highly regarded third -party childcare operator. QCS is well -established and has successfully provided free childcare services at their Mission Cove property in Oceanside, serving over 50 children from local families.

National CORE supports families and seniors by providing housing communities that are affordable, safe, and of the highest quality. They enhance neighborhood stability through long -term management and maintenance, as well as industry -leading services such as senior wellness, preschool and afterschool programs, support for mental, physical and behavioral health, employment development, family financial training, and social connectedness. A key example of their work is Valley Senior Village, here in Escondido.

Staff recommend awarding not only the $583,938.80 in 2018 expiring funds, but also allocating additional unspent HOME funds from 2019-2023, in the amount of $2.4 million dollars, for a total of $3 million to National CORE Renaissance for the development of the Valley Creek Project. Funding this project at this level serves a dual purpose: providing crucial, housing for our most vulnerable residents while strategically deploying funds to prevent expiration and ensuring no resources are recaptured for several years to come. 421
Item14.

In order to accelerate project delivery and meet critical deadlines , the City will utilize a cooperative purchasing approach, 'piggybacking' on the County’s exis ting RFP. Under this model, the County acts as the lead agency, providing both the environmental review and competitive RFP process. While this streamlines the procurement process, staff will ensure compliance with all federal standards, specifically conducting the necessary subsidy layering and underwriting reviews. Furthermore, the City will execute a formal HOME written agreement with the County’s chosen developer prior to committing any funds.

Given the time constraints, conducting a separate competitive solicitation of our own is not feasible.

By supporting this project, we are not only addressing the need for affordable housing units for our most vulnerable residents. We will also ensure that Escondido residents, who are often displaced by rising costs, have preference for these new units and to daycare services. Subject to applicable fair housing laws, the developer will give reasonable preference and consideration to the housing needs of applicants residing in the City of Escondido . Preference indicates that all other factors being equal, an Escondido resident would be selected over a non-resident. This preference will be explicitly written into the final agreement.

Additionally, this funding will strengthen National CORE’s overall financial proforma , accelerating the development, construction, and availability of affordable housing for the community.

An affordable apartment complex dedicated to seniors and veterans can provide significant community, economic and social benefits for the City. It provides fixed income seniors, and veterans with safe stable and affordable housing. It reduces the risk of homelessness and housing displacement and supports aging in place within the community. If approved this amendment would allocate current and future expir ing HOME funds, preventing recapture of funds for the next several years.

ATTACHMENTS
a. Attachment “1”—Options for One-Time Expiring HOME Funds

422
Item14.

Attachment “1”
1 Options for One-Time Expiring HOME Funds - $583,938.80 Description Funding Pros Cons Public Benefit

1. Award
funding to
National Core
for an
approved but
not yet built
Affordable
Housing
Development
within the
City limits,
with the
County as
the lead
agency, in
the amount of
$3,000,000.

HOME Expiring
funds & additional
unspent HOME
funds

$583,938.80
$2,416,061.20
$3,000,000.00
 Piggybacks on the
County’s competitive
solicitation and
environmental review
significantly reduces the
timeline.
 Strengthens
intergovernmental
partnerships.
 Best option for timely
expenditure of 2018
expiring funds, by Sept.
30, 2026.
 CORE owns and operates
their developments,
allowing them to maintain
control over the property,
resulting in operational
efficiencies and quality
control.
 Project would serve
residents at 30%-60%
Average Median Income
(AMI) [one of the hardest
groups to house] and
veterans in danger of
becoming homeless.
 Project will offer on-site
supportive services to
residents, plus childcare
 Would reduce the
amount of HOME
funding available to
support other
affordable housing
development
projects in the City.
 It’s on County
owned land-
reduced local
control.
 Potential
interagency
coordination
challenges with
County in lead role
and limited oversight
opportunity for City.

 Escondido resident
preference for
approximately 14
units.
 Free daycare to
residents and the
public.
 On site supportive
services.
 Homeless
prevention
 Supports aging in
place.
 Frees up larger
housing units for
families throughout
the city.

423
Item14.

Attachment “1”
2 facility for residents and
the public.
 Aligns with the Housing
Element goals to create
more affordable housing
and the council priority to
drive community and land
development.
 The City’s originally
planned Request for
Proposal (RFP) can still
move forward utilizing
other funding sources.
($4,000,000 in Successor
Housing Agency funds and
$1,500,000 in HOME ARP
funds)

2. Award
funding to
National Core
for an
approved but
not yet built
Affordable
Housing
Development
within the
City limits
with the
County as
the lead

HOME Expiring
funds

$583,938.80

 Piggybacks on the
County’s competitive
solicitation and
environmental review
significantly reduces the
timeline.
 Strengthens
intergovernmental
partnerships.
 CORE owns and operates
their developments,
allowing them to maintain
control over the property,
resulting in operational
efficiencies and quality
control.
 The funding amount
is insufficient to
justify the
administrative and
compliance
requirements for the
developer and city
staff.
 The developer
would likely decline
the award and wait
for the larger City
RFP. This would
delay committing
and spending the
 Escondido resident
preference for two
units.
 Free daycare to
residents and the
public.
 On site supportive
services.
 Homeless
prevention
 Supports aging in
place.
 Frees up larger
housing units for
families throughout
the city.
424
Item14.

Attachment “1”
3 agency, in
the amount of
$583,938.80.

 Project would serve
residents at 30%-60%
Average Median Income
(AMI) [one of the hardest
groups to house] and
veterans in danger of
becoming homeless.
 Project will offer on-site
supportive services to
residents plus childcare
facility for residents and
the public.
 Aligns with the Housing
Element goals to create
more affordable housing
and the council priority to
drive community and land
development.
 Leaves more funding
available for the City’s
originally planned RFP
($3,000,000 in HOME
funds, $4,000,000 in
Successor Housing
Agency funding, and
$1,500,000 in HOME
ARP).
funds by September
30, 2026.

3. City issued
RFP for an
affordable
housing

HOME Expiring
funds
 The City would have full
control of the project.
 Provides additional
funding allowing for a
larger project.
 The estimated
timeline for issuing
the RFP is 6–8
months. This and
the substantial
amendment process
 City may be able to
negotiate higher
potential
community benefits
for Escondido
residents.
425
Item14.

Attachment “1”
4 project in the
amount of
$8,500,000.
$583,938.80

additional unspent
HOME funds
$2,416,061.20

Successor
Housing Agency
funding
$4,000,000.00

HOME ARP
funding
$1,500,000.00

 Provides a benefit to the
developer – more local
funding makes projects
more favorable to other
funders.
will extend the
project timeline
beyond the
mandatory
expenditure
deadline.
 $583,000 would be
returned to the
Department of
Housing and Urban
Development (HUD)
due to the inability to
meet the September
30, 2026 deadline

4. Supplemental
Rental
Subsidy
Program in
the amount of
$583,938.80.

HOME expiring
funds

$583,938.80

 Would serve 292
households annually in
addition to the 80 served
through the existing TBRA
Program.
 Timeline- after the
substantial
amendment process
(March), promotion
of the program,
execution of
contracts,
verification of legal
status for all
members of the
household, and
conducting home
inspections
(April/May), there
would be 4-5
months left before
the expiration of
funds. At 5 months,
 Would serve 292
households in
addition to the 80
served through the
existing TBRA
Program.
 Homeless
prevention – rental
subsidy will help
people stay
housed.
 Frees up
individual’s
monetary
resources for other
life essentials like
food and
healthcare.
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Item14.

Attachment “1”
5 an additional 292
households
receiving the
maximum subsidy,
are needed in order
to spend the funding
by the Sept. 30,
2026 deadline.
 Significant
administrative
burden on the
Finance
Department, the City
Attorney’s Office
and Housing and
Neighborhood
Services, as a result
of the need to issue
an additional 292
checks each month,
292 contracts to
review, and 292
homes to inspect.
 Temporary – rental
subsidy would not
be available after
September 2026.
 Funding would likely
be returned due to
the limited
timeframe to
implement the
427
Item14.

Attachment “1”
6 program and expend
the funds.
 Housing and
Neighborhood
Services does not
have the current
capacity to run a
program of this size
without additional
staffing support or
outside organization
assistance.
 HOME funds would
not be able to pay
for additional staffing
resources due to the
cap on
administrative costs.

Support from one or
more city funds
would be needed.
 Other Development
Services staff could
be reassigned to
assist, but that
would create
potential issues with
workload efficiencies
and work load
schedules in other
service areas.

428
Item14.

Attachment “1”
7 5.

Supplemental
Rental
Subsidy
Program in
the amount of
$3,000,000.

HOME Expiring
funds & additional
unspent HOME
funds

$583,938.80
$2,416,061.20
$3,000,000.00
 Would serve 625
households at the current
subsidy rate, in addition to
the 80 currently served
through the existing TBRA
Program.

 All of the Cons in
Option 4 apply to
Option 5 - It would
still be a challenge
to spend the
$583,938 by the
deadline.
 Every year the City
would be up against
the spending
deadline of
September 30.

 Would serve 625
households at the
current subsidy
rate, in addition to
the 80 served
through the existing
TBRA program.
 Homeless
prevention – rental
subsidy will help
people stay
housed.
 Frees up
individual’s
monetary
resources for other
life essentials like
food and
healthcare.

429
Item14.

STAFF REPORT

March 4, 2026
File Number 0800-90

SUBJECT
PL26-0019 SOUTH CENTRE CITY PARKWAY SPECIFIC PLAN – EFFORT ASSESSMENT FOR DRIVE -

THROUGH USES

DEPARTMENT
Development Service Department, Planning Service Area

RECOMMENDATION
Request the City Council receive the Effort Assessment for Drive-Through Uses presentation. No action is required at this time except to provide direction to staff as appropriate.

Staff Recommendation: Provide Direction (Development Services: Kevin Snyder, Director of Development Services)
Presenter: Sally Schifman, Principal Planner
ESSENTIAL SERVICE – Yes, Land Use/Development
COUNCIL PRIORITY – Be Business Friendly, Drive Community and Land Development

FISCAL ANALYSIS
This item is informational only. There are no direct fiscal implications associated with this presentation.

PREVIOUS ACTION
None

BACKGROUND
In September 2025, Councilmember Christian Garcia made a motion for a future -agenda item to discuss the existing prohibition of drive-through uses in the South Centre City Specific Plan Area. Councilmember Joe Garcia seconded the motion.

The City Manager’s Office directed Development Services Department staff to present an informational item related to the scope of existing conditions on such prohibitions within the specific plan area, as well as the required level of effort to amend the specific plan with corresponding “next steps” for a potential amendment.
430
Item15.

The South Centre City Specific Plan (“SCCSP”) Planning Area is a linear corridor south of Downtown Escondido , running along Centre City Parkway and South Escondido Boulevard from the southern edge of the general downtown area to Interstate 15 (I -15) (see Figure 1 ). Major east -west roadways include 5th Avenue, 9th Avenue, 13th Avenue,
Felicita Avenue, Brotherton Avenue, and Citracado
Parkway. I n addition to Centre City Parkway and South
Escondido Boulevard, major north -south roadways include Redwood and Quince Streets west of Centre City Parkway, and Orange Street between Centre City Parkway and South Escondido Boulevard . A link to the SCCSP can be found below:

South Centre City Specific Plan Document
The SCCSP is the result of a multi -year, community-based effort known as “Envision South Cent re City.” Public
outreach was heavily emphasized in the planning process to ensure that the specific plan reflects the community’s vision for the future. Because this issue was of significant interest to the public, the City began the process with a far-reaching public outreach and engagement effort. Between 2015 and 2018, the City conducted multiple outreach efforts to
inform and engage residents, property owners, business
and stakeholder groups, which included community events, stakeholder presentations a nd community conversations, informational open houses, commission meetings, and
media/print. The dialogue and input received during this phase of outreach helped describe collective preferences, interests and concerns on the type of land use, density, and character of new development within different areas of Centre City corridor. This exchange helped identify the vision for South Centre City and was utilized in establishing the set of themes that resonate throughout the SCCSP. The result is a Specific Plan based on the community’s vision for their neighborhood. Within the SCCSP, there are eight land use districts, each with their own land use allowances based on the community feedback received during plan creation.

The SCCSP has three different categories of drive-through land uses:

1. Auto-oriented eating establishments (drive-in, drive-through) (Subject to Section 33 -341 of the EZC);
Figure 1 – South Centre City Specific
Plan Planning Area
431
Item15.

2. Drive-through facilities, including drive -through banks, dairies, drug stores/pharmacies, grocery stores, cleaners, etc., whic h are either an incidental use to the primary use or constitute the primary use (Subject to Section 33-341 of the EZC); and

3. ATM Kiosk with drive-through (as an accessory use only).

In addition, there are automotive-related land uses that are arguably similar in nature to drive-throughs:
 Gasoline service stations, without concurrent on-site or off-site sale of alcoholic beverages or with off-site sale of alcoholic beverages; and
 Car wash, polishing, vacuuming, detailing (as a primary or accessory use, s ubject to Section 33 - 1126 of the EZC).

There are nine existing eating establishments with drive -throughs and 11 other drive -through facilities, (e.g., gas stations, car washes) throughout the SCCSP, as depicted in Attachment “1” of this Staff Report.

Currently, the specific plan prohibits eating establishment drive-throughs in all but two of the districts:

Felicita Commercial District and West Mercado District. However, automotive -related uses similar in nature to drive-throughs are permitted within five of the districts. Two districts, Quince Street District and Orange Street District, are expressly residentially focused districts and prohibit all non-residential uses.

Changing the SCCSP and Next Steps: If the City Council desires, they may direct staff to draft changes to the allowed uses within the specific plan via a Specific Plan Amendment, with guided direction. City staff recommend the effort include robust outreach and engagement that continues forward elements from the original outreach and engagement efforts of the plan’s creation in 2018. Amending the SCCSP would require staff time to project manage the endeavor. Funding allocated to a potential amendment would facilitate a more streamlined process as it would allow for technical experts to support the process, such as environmental review compliant with the California Environmental Quality Act (“CEQA”) . C urrent workload priorities of Development Services’ Planning Service Area include a number of long -range planning projects that are state mandated, such as ordinance updates for compliance with changes in state laws; implementation of the City’s adopted Housing Element to maintain housing element certification from the state; and general plan amendments related to mandatory state compliance. If the City Council authorizes a Specific Plan Amendment to the SCCSP, direction on project prioritization would assist in navigating staff capacity limitations. In addition to receiving and filing the presentation, potential City Council direction may include, but is not limited to, the following:
 Direct that the SCCSP is to remain as-is (no change);  Direct City staff to return to City Council with additional information specified by the City Council;  Direct City staff to initiate a Spec ific Plan Amendment to allow drive-through uses within the SCCSP, with guidance on which work efforts to deprioritize.

432
Item15.

ATTACHMENTS
a) Attachment “1” —Drive-through / auto -oriented uses within the South Centre City Specific Plan Map
433
Item15.

Attachment “1”
PL26-0019
Drive-through / auto-oriented uses within the South Centre City Specific Plan

434
Item15.

March 4, 2026
Item No. 17: CALIFORNIA CENTER FOR THE

ARTS, ESCONDIDO FOUNDATION -

FINANCIAL REPORT AND UPDATE -
 No materials available. Presentation and Council
discussion only.
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Item16.

STAFF REPORT

March 4, 2026
File Number 0430-80

SUBJECT
FY2025/26 MID-YEAR FINANCIAL STATUS REPORT AND BUDGET ADJUSTMENT REQUEST

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council:
1) Receive and file the second quarter financial report for FY2025/26 (Attachment “1”); 2) Adopt Budget Adjustments (Attachment “2”) to amend the Fiscal Year 2025/26 operating and capital budget.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
ESSENTIAL SERVICE – Yes, Police Services; Fire/EMS Services; Keep City Clean for Public Health and Safety; Land Use/Development; Clean Water; Sewer;
COUNCIL PRIORITY – Financial Stewardship

FISCAL ANALYSIS
See Below.

PREVIOUS ACTION
On October 15, 2025, the City Council received the Fiscal Year 2024/25 fiscal year end report.

BACKGROUND
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 hard line on expenditures and staff are continuously seeking measures that ensure efficiency, while enhancing basic operations. In addition, since the Great Recession, the City has controlled costs by annually deferring maintenance and capital project costs. In FY2023/24 to close a $11,295,840 general fund budget deficit and continue to provide 436
Item17.

essential City services, reserve balances were used as well as deferring major purchases to future years.

In FY2024/25, 10 full-time vacant positions were eliminated and both the Library and California Center for the Arts were removed from the General Fund and were funded with American Rescue Plan Act Funds, a one-time source of funds that expire on December 31, 2026.

Revenue-generating opportunities have been explored and some fully implemented with the approval of the City Council. This includes the approval of a short-term rental program, joining the paramedic Ground Emergency Medical Transportation Program, and moving the User Fee schedule to full cost recovery effective September 2024.

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. In the November 2024 election, a citizens group was successful in placing Measure I on the ballot which voters approved with 61.12% in favor. Measure I is a one -cent general sales tax that increases the sales tax rate in Escondido from 7.75% to 8.75% and has a 20-year sunset. Utilizing both Measure I Local District Tax and General Fund revenues, the FY2025/26 Operating Budget provides resources for the essential services identified in the ballot language in addition to City Council priorities.

Attachment “2” to this Staff Report includes an analysis of General Fund operating revenues, expenditures, and reserve balances for the second quarter ending December 31, 2025.

Recommended Budget Adjustments:

City Clerk’s Office - $20,800: Senate Bill 707 (“SB 707”) which was adopted at the end of 2025 requires the City to provide a remote option that allows members of the public to participate in City Council meetings.

The City selected a platform called Public Input that integrates with Zoom and Microsoft Teams to facilitate remote public participation in a manner that fully complies with all requirements established under SB 707. To ensure compliance, the City Clerk’s Office is moving forward with the acquisition of this software, which is not currently budgeted in Fiscal Year 2026. Timely procurement is critical, as agencies throughout the State of California are implementing similar solutions, and Public Input is currently the only technology that offers full SB 707 compliance within a single, integrated platform. Early acquisition will allow the City to secure onboarding and training with the Public Input technology team in Spring 2026 and ensure a successful public rollout well in advance of the SB 707 compliance deadline of July 2026.

Communications & Digital Media Services - $100,000: Public, Education, and Governmental Fees, known as “PEG” fees are part of the franchise fees received from the City’s cable operators and can only be used to support the City’s costs for public access and programming. Communications and Digital Media Services are recommending to utilize $100,000 of this restricted revenue to cover the cost of the existing County Office of Education contract for the PEG channel programming and the ongoing accessibility upgrades to 437
Item17.

the City’s website to keep compliant with the federal Web Content Accessibility Guidelines ( “WCAG") standards.

Economic Development -$74,500: The FY2025/26 operating budget includes $50,000 for outreach and marketing. To date those funds have been used to contract with Bloom Public Relations to develop a strategic plan for consistent communication with internal and external audiences to enhance community and regional visibility. This communication plan highlights k ey programs, department updates and performance metrics related to Economic Development initiatives. An additional $32,000 is recommended to extend these services through the end of the fiscal year. The FY2025/26 operating budget also provided $63,000 of funding to engage with a consultant to evaluate the feasibility of a Property-Based Improvement District (“PBID”) downtown. A contract with New City America was approved by the City Manager in June 2025. Additional funds are requested to extend the cont ract five additional months at a cost of $42,500.

Development Services: The Development Services department is requesting the addition of one new Principal Planner position. This position is recommended due to reclassifications within the department and will be necessary for current planning operations and management, as well as complex project review.

Fire Department - $545,440: In FY2022/23 the City joined the Public Provider Ground Emergency Transportation Inter -Governmental Transfer (PP -GEMT-IGT) pro gram that was established by the legislature and Governor (AB 1705) and is managed by the Department of Health Care Service s. The program provides an add-on payment to ambulance transportation reimbursements for those patients covered by Medi-Cal. The program has generated additional revenue of about $4.8 million annually since implemented. To participate in the program, agencies must contribute an Administrative Fee. The fee is adjusted annually to reflect changes in program dynamics, including incre ases in the supplemental add - on amount and other contributing factors. The fee for FY2025/26 was higher than currently budgeted, an additional $545,440 is needed to pay the administrative fee amount of $2,055,340.

Library Infrastructure Project - $500,000: As part of the library infrastructure project, additional funds are needed to complete updates to the exterior path to the library to comply with the American s with Disabilities Act (“ADA”), updates to the fire protection system, and backflow preventors. These improvements are required by Building Code and are not eligible expenses under the grant terms.

Mission Pools Channel Fencing Project - $400,000: To improve security, staff are recommending to install fencing between Third Avenue and Spruce Street along the stormwater concrete channel. This project bid has been completed, closing on February 24, 2026.

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Item17.

Traffic Safety Projects - $2,265,000: In January 2026 at the January 1 4th and January 28 th City Council meetings, staff presented recommended traffic safety projects across the City. The following are recommended budget adjustment requests to fund those projects:
 The Comprehensive Active Transportation Strategy (“CATS”) identified $1,900,000 of life safety projects near schools. This funding will allow staff to establish a school safety program to address the additional identified improvements listed in the CATS.  A traffic calming project to slow traffic as it approaches the downtown area at Juniper and Grand Avenue for $90,000 is recommended. The project includes improvements for the restoration of signal operations and additional parking of about 15 new spots between Juniper and Ivy.  At the January 28, 2026 C ity Council meeting, staff provided an update on the Citywide Traffic Signal System Communications . Funding of $275,000 is recommended for corridor signal coordination on primary arterials throughout the City, a traffic consultant to re-establish previous arterial signal coordination, and prepare signal coordination plan to be ready to implement when the traffic signal equipment installation is complete.

ATTACHMENTS
a. Attachment “1” – FY2025/26 Second Quarter Financial Report b. Attachment “2” – Budget Adjustment Request
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Item17.

1 FY2025/26 Financial Status Report
Second Quarter Ending December 31, 2025

OVERVIEW
This report summarizes the City’s financial position through the second quarter ending December 31, 202 5 for the General Fund. The purpose of the report is to provide City Council, City Management, and the Escondido community an update on the City’s fiscal status based on the most recent financial information available. The revenue projections and budget i nformation include adjustments for encumbrances, carryovers, and any other supplemental appropriations approved by the City Council as of December 31, 2025.

This report is for internal use only. The figures presented here are unaudited and have not been p repared in accordance with Generally Accepted Accounting principles (GAAP).

GENERAL FUND
At the end of the second quarter, General Fund revenues are at 35% of the amended budget, while expenditures are at 50%, shown in the table below.

General Fund
Comparison of Projected FY2025/26 Operating Budget to Actuals FY2025/26

ADOPTED
BUDGET
FY2025/26

AMENDED
BUDGET

ACTUAL RESULTS
DECEMBER 2025 %
Total Operating Revenue $134,984,850 $134,984,850 $47,126,390 35% Total Operating Expenditures (139,684,620) (142,194,900) (70,512,380) 50% Operating Transfers 4,699,770 2,159,415 2,159,415 -
$- ($5,050,635) - -

GENERAL FUND REVENUE
The table below compares actual results for General Fund operating revenue as of December 2025 to December 2024.

FY2025/26

AMENDED BUDGET

ACTUAL RESULTS
DECEMBER 2025

ACTUAL RESULTS
DECEMBER 2024
Prior Year vs.

Current Year
Sales Tax $46,741,040 $15,341,650 $15,071,930 $269,720 Property Tax 38,772,960 8,504,760 7,968,290 536,470
Other Taxes 19,748,070 4,843,770 5,020,160 (176,390) Charges for Services 17,300,360 9,911,520 8,081,600 1,829,920 Intergovernmental 4,239,580 3,768,450 3,421,500 346,950 Fines and Forfeitures 850,200 295,640 366,960 (71,320) Permits and Licenses 2,005,630 2,212,840 1,863,860 348,980 Rental Income 4,131,470 2,114,620 2,020,470 94,150
Other Revenue 1,195,540 133,140 128,550 4,590
TOTAL OPERATING REVENUE $134,984,850 $47,126,390 $43,943,320 $3,183,070 Attachment "1"
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City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

2 over the December 202 4 amount by $ 269,720. This was largely due to sales at local auto dealerships and
dsitributions from the State and County pools, which
combined make up the two largest sales tax segments for the city.

Sales Tax (35% of Total General Fund Revenue): $15.3 million The City works closely with its sales tax consultants in projecting sales tax revenue. The forecast for FY202 5/26 was provided by HdL and projects a decline of about 1.5% compared to FY202 4/25 due to the impacts of inf lation, interest rates, weaker consumer confidence, lower
household discretionary spending and fluctuating gas
prices.

Actual sales tax receipts are over the December 202 4
amount by $269,720. This was largely due to sales at local auto dealerships and distributions from the State and
County pools, which combined make up the two largest
sales tax segments for the city.

Property Tax (29% of Total General Fund Revenue): $8.5 million Property Tax revenue increased by $536,470 or about 6.7% compared to this time in prior year.

The largest portions of property tax revenue are distributed by the County in December and April each year. The
FY2025/26 Operating Budget projected property tax
growth of 1.4%. 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.

Other Taxes (15% of Total General Fund Revenue): $4.8 million Other Taxes include franchise fee revenues, transient occupancy tax, and business license revenue and combined have decreased by $176,390 or 3.5% compared to the prior year.

Franchise Fees
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). Revenues received from franchise agreements
decreased by $ 89,023 from the prior fi scal year primarily due to receipts from SDG&E and the cable companies.

Receipts received from Escondido Disposal increased by

7.7% or $146,203 compared to the same time last year.

-1.2%
-7.3% -0.7% 1.3%
$14.0
$15.0
$16.0
$17.0
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Sales Tax

6.0%

5.6%

6.7%

6.3%
$5.5
$6.5
$7.5
$8.5
$9.5
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Property Tax

21.1%

26.1%
-20.7%

26.1% -3.4%
$1.0
$2.0
$3.0
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Franchise Fees
Attachment "1"
441
Item17.

City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

3 Transient Occupancy Tax
Transient occupancy tax, also known as hotel tax,
decreased by $18,340 compared to the prior year. In July 2024, the City Council approved a contract with HdL to
provide transient occupancy tax management, compliance, and collection services. The new online system successfully went live in June 2025. In addition, this category of revenue does now include payments from the short -term rental
program which went into effect in July 2025. Since then, 64 permits have been issued generating revenue of $90,335 in transient occupancy tax revenue.

Business License Revenue
All entities doing business in the City are required to have a valid business license. The business license tax is calculated based on annual gross receipts. Business license revenues increased by $154,639 compared to the prior fiscal year.

In July 2024, the City Council approved a contract with HdL to provide business license management, compliance, and collection services. The new online system successfully went live in June 2025, and renewal letters from May and June were processed at that time. In addition to processing the renewals, HdL will also be performing compliance
services to ensure all businesses in the city have a valid business license

Charges for Services (13% of Total General Fund Revenue): $9.9 million Charges for Services include paramedic fees, Community Services fees for recreational and community activities, and charges for development related services, which include Engineering and Planning fees.

This category of revenue has increased by $ 1,829,926
primarily due to Paramedic Services revenue which
increased by $1.2 million compared to the prior year . In FY2022/23, the City began receiving new revenue due to
the Ground Emergency Medical Transporta tion Program
that utilizes Federal funding to supplement the ambulance billing revenue received for medical transports.

Community service fees are over the prior amount received by$107,496 and Development Services fees have increased by $492,237.

83.3% 9.1% -8.3% 0.0% 0.0%
$-
$1.0
$2.0
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Transient Occupancy Tax
-10.7%

16.7% -0.5% 0.7%

16.5%
$750,000
$850,000
$950,000
$1,050,000
$1,150,000
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Business License Revenue

17.3%

16.4% 12.7% 1.3%

22.2%
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Charges for Services
Attachment "1"
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City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

4 Intergovernmental (3% of Total General Fund Revenue):
$3.7 million
Intergovernmental revenue includes the Rincon fire services agreement, state mandated cost claims, various grants, and revenue received from the fire mutual aid reimbursements.

Overall re venue has increased $ 346,955 compared to the prior year.

The City’s Fire Department staff can be deployed to assist other State agencies with responses to fires and other
incidents. The California Office of Emergency Services reimburses the City for the time and resources of the staff deployed. As of December 202 5, reimbursements of
$749,127 have been recorded.

Permits and Licenses (1% of Total General Fund Revenue):
$2.2 million
Revenue generated from permits and licenses increased by $348,980 compared to fiscal year 202 4/25. Construction and development activity continues driving building permit revenue compared to previous fiscal years.

Fines & Forfeitures (1% of Total General Fund Revenue):
$295,640
Fines & Forfeitures represen t fees collected for vehicle code fines, parking ticket fines, other court fines, code enforcement citations, and impound fees. Overall revenue has decreased by $71,320 compared to the prior fiscal year.

3.8% 0.0% -3.7%

30.8%

8.8%
$2.0
$2.3
$2.6
$2.9
$3.2
$3.5
$3.8
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Intergovernmental Revenue

7.7% -12.3%

37.9%

45.3%

18.6%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Permits & Licenses

9.2%
-25.8% -3.1%

10.5%
-19.4%
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Fines & Forfeitures
Attachment "1"
443
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City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

5 Rental Income (3% of Total General Fund Revenue):
$2.1 million
The City receives lease and rental income from City owned properties, such as the North County Mall, shared revenue with the City of San Diego for activity at the Vineyard Golf Course, and sma ll cell tower lease revenue . Overall
revenue has increased by $ 94,150 compared to the prior fiscal year.

Investment and Other Revenues (1% of Total General
Fund Revenue): $133,140
Investments and Other Revenue includes interest earned
from investing activities, and other miscellaneous receipts and has increased by $4,590 compared to the prior year.

0.0% 5.6%

0.0%

5.3%
$1.5
$1.6
$1.7
$1.8
$1.9
$2.0
$2.1
$2.2
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Rental Income
-56.8% 4.0% -14.5% 28.2% 3.6%
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Other Revenue
Attachment "1"
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City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

6 GENERAL FUND OPERATING EXPENDITURES
The total adopted FY202 5/26 General Fund Operating Budget is $ 139.7 million, an increase of approximately $ 5.2 million or 3.9% compared to the FY202 4/25 Operating Budget. The following table includes cumulative expenditure comparisons for General Fund departments as of December 2025.

AMENDED
BUDGET
FY2025/26

ACTUAL RESULTS
DECEMBER 2025

ACTUAL RESULTS
DECEMBER 2024
Prior Year
vs. Current
Year
General Government Services $9,531,520 $4,743,820 $3,660,950 1,082,870 Community Services 5,564,240 2,570,180 2,757,490 (187,310) Development Services 10,941,630 5,258,180 4,284,270 973,910 Public Works 14,996,300 7,598,280 6,390,120 1,208,160
Police 61,759,750 30,994,500 29,088,880 1,905,620
Fire 34,316,760 17,226,990 18,456,670 (1,229,680)
California Center for the Arts 2,677,280 849,810 546,390 303,420 Library 807,360 372,630 443,320 (70,690)
Other Expenditures 1,600,060 897,990 1,208,490 (310,500) TOTAL OPERATING EXPENDITURES $142,194,900 $70,512,380 $66,836,580 $3,675,800

The City continues to be impacted by a competitive labor market, as a result of recurring vacant positions and long recruitment efforts there are expenditure savings in regular salary and benefits through December 202 4. However, the vacant positions have also increased the overtime expenditures which are at 86% of the amount budgeted for the fiscal year. The increase in overtime expenses will be offset by the savings in employee services.

AMENDED
BUDGET
FY2025/26

ACTUAL RESULTS
DECEMBER 2025
% of
Budget
Employee Services $112,717,850 $51,045,390 45%
Employee Services - Overtime 6,938,550 4,961,010 71%
SUBTOTAL EMPLOYEE SERVICES $119,656,400 $56,006,390 47% Maintenance and Operations 25,547,480 11,955,650 47%
Internal Service Charges 17,777,570 8,888,760 50%
Allocations (20,186,550) (6,338,430) 31%
SUBTOTAL OPERATING EXPENDITURES $142,794,900 $70,512,370 49% Historical Cost Savings Reduction (600,000) - -
TOTAL OPERATING EXPENDITURES $142,194,900 $70,512,370 50%

Attachment "1"
445
Item17.

City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

7 The following tables show each department’s operating expenses through December 2025 compared to the amended budget for FY2025/26:

GENERAL GOVERNMENT SERVICES

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
City Council $348,820 $ - $348,820 $184,409 53%
City Manager 775,270 4,760 780,030 521,150 67%
City Attorney 179,270 - 179,270 135,128 75%
City Clerk 663,820 54,400 718,220 442,016 62%
City Treasurer 133,110 4,480 137,590 94,064 68%
Economic Development 2,148,950 58,600 2,207,550 630,998 29% Finance 1,935,630 59,200 1,994,920 1,010,891 51%
Human Resources & Risk Management 785,340 - 785,340 391,066 55% Information Systems & GIS 1,688,120 - 1,688,120 981,060 42% Communications & Digital Media 682,470 9,190 691,660 353,040 49% TOTAL GENERAL GOVERNMENT $9,340,800 $190,720 $9,531,520 $4,743,822 50% *MOUs approved with Teamsters, Supervisory, and Non-Sworn Police. City Clerk professional services contract with DocuSign and Laserfiche. Economic Development funds for Visit Escondido

COMMUNITY SERVICES

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
Recreation $4,066,390 $41,270 4,107,660 2,041,778 50%
Older Adult Services 678,910 10,160 689,070 323,879 47% Senior Nutrition 761,860 5,650 767,510 204,525 27%
TOTAL COMMUNITY SERVICES $5,507,160 $57,080 $5,564,240 $2,570,182 46% *MOUs approved with Teamsters, Supervisory, and Non-Sworn Police.

DEVELOPMENT SERVICES

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
Planning $2,656,070 $349,550 $3,005,620 $1,425,258 47% Building 2,195,020 678,150 2,873,170 1,164,916 41% Engineering 3,685,710 199,310 3,885,020 2,056,883 53% Code Compliance 1,138,890 38,930 1,177,820 611,127 52% TOTAL DEVELOPMENT SERVICES $9,675,690 $1,265,940 $10,941,630 $5,258,183 48% *MOUs approved with Teamsters, Supervisory, and Non-Sworn Police. Carryovers from FY2024/25. Contract amendment with Interwest for Building professional services

Attachment "1"
446
Item17.

City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

8 PUBLIC WORKS

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
Street Maintenance $9,881,370 $231,340 $10,112,710 $5,111,466 51% Park Maintenance 4,749,960 133,630 4,883,590 2,662,131 55% Radio Communications - - - (175,312) 0%
TOTAL DEVELOPMENT SERVICES $13,938,230 $364,970 $14,996,300 $7,598,284 51% *MOUs approved with Teamsters, Supervisory, and Non-Sworn Police.

POLICE DEPARTMENT

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
Police Department $61,454,150 $305,600 $61,759,750 $30,994,500 50% *MOUs approved with Teamsters, Supervisory, and Non-Sworn Police.

FIRE DEPARTMENT

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
Fire Department $33,990,790 $325,970 $34,316,760 $17,226,989 50% *MOUs approved with Teamsters, Supervisory, and Non-Sworn Police. Carryovers from FY2024/25. CalOES Reimbursements

LIBRARY

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
Main Library* $807,360 $- $807,360 $372,633 46%
*Library Management Services with LS&S are funded by American Rescue Plan Act Funds in FY2025/26. Expenses are for maintenance and internal service charges

CENTER FOR THE ARTS

ADOPTED
BUDGET
FY2025/26
BUDGET

ADJUSTMENTS

AMENDED
BUDGET
FY2025/26
ACTUAL

RESULTS

DECEMBER
2025
% Of
Budget
California Center for the Arts $2,677,280 $- $2,677,280 $849,813 32%

Attachment "1"
447
Item17.

City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

9 GENERAL FUND AVAILABLE FUND BALANCES
In December 2015, City Council adopted a Fund Balance Policy and established a General Fund target Reserve balance of 25% of General Fund operating revenues in order to maintain adequate levels of fund balance. This goal is based on a risk-based analysis to mitigate current and future risks, adequately provide for cash flow requirements, and to fund one-time unanticipated expenditure requirements.

Total General Fund budgeted operating revenue in FY2025/26 is $135,025,410 and 25% of this amount is $33,756,352.

The current General Fund Reserve balance is $17,392,319. In addition, the Section 115 Pension Trust Fund has a balance of $39,094,174. Combined these, funds total $56,486,493 which exceeds the 25% minimum established by the Reserve Policy.

In February 2018, City Council authorized the establishment of a Section 115 Irrevocable Pension Trust Fund. The Trust Fund is used 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. Another benefit is that funds held in the Trust can be invested in the same manner as funds in a typical pension fund rather than as part of the City’s Gen eral Fund, which means a potentially higher rate of return.

When the Pension Trust Fund was established, a funding policy for contributions to the Fund was recommended and included the four years of annual Successor Agency Redevelopment Loan Repayments o f $14 million that began in FY2018/19, future proceeds from the sale of City Property belonging to the General Fund, and a portion of General Fund surplus at the end of each fiscal year, if one exists.

On December 31 , 202 5, the Section 115 Pension Trust Fu nd had a balance of $ 39,094,174 which included City contributions of $31,257,650 plus investment earnings net of expenses of $ 4,216,754. The Trust Fund has a 3 -year rate of return of 9.26%, a 1-year rate of return of 10.60%, and a 3-month rate of return of 1.58%.

Attachment "1"
448
Item17.

City of Escondido Fiscal Year 2025/26 Second Quarter Financial Report

10 General Fund Other Available Resources
The General Fund has accumulated unrestricted resources in the fund that are available for City Council direction. The General Fund reported an Operating Surplus in FY2022/23 and FY2023/24. American Rescue Plan Act Lost Revenue funds were also fully recognized and used to support General Fund Public Safety services during this same timeframe.

In January 2024 City Council approved the use of a portion of those funds totaling $5,221,000 listed below. In FY2024/25 two properties were sold by the city resul ting in net revenue of $4,816,695. Additional funds have been allocated during the fiscal year with City Council approval.

DESCRIPTION CITY COUNCIL DATE AMOUNT
Net Surplus and ARPA Lost Revenue from prior fiscal years $8,624,329 Sale of Animal Shelter Facility November 25, 2024 4,386,192 Sale of 707 S. Hale Avenue December 23, 2024 430,503
Operation Harmony Grove December 16, 2024 (4,000,000)
Library Utilities and Preliminary Relocation Costs February 19, 2025 (95,000) Additional Funding for the ERP Project February 19, 2025 (327,700) Temporary Library Relocation April 9, 2025 (828,000)
General Fund FY2024/25 Operating Surplus October 15, 2025 819,940 FY2024/25 Carryovers October 15, 2025 (720,800)
Sales Tax on Fire Pumpers October 15, 2025 (341,040)
2 New Vehicles for Fire Division Chiefs October 15, 2025 (405,000) Fire – CPR Machines October 15, 2025 (180,000)
Fire – Supplies (CalOES Reimbursements) October 15, 2025 (107,500) Command Vehicle Additional Fees October 15, 2025 (218,040) 4 New Vehicles for Parks Rangers October 15, 2025 (190,000) Park Rangers October 15, 2025 (190,000)
City Clerk Contracts October 15, 2025 (54,400)
Replacement of Windows for Library October 15, 2025 (815,000) Development Services – Interwest Consulting Agreement October 15, 2025 (500,000) 2 New Vehicles for Engineering October 15, 2025 (140,000) Economic Development – Visit Escondido October 15, 2025 (58,600) Net Available General Fund Resources $3,949,144

FOR MORE INFORMATION
This summary report is based on detailed information generated by the City’s Finance department. If you have any questions or would like additional information on this report, please contact the Finance department at (760) 839 - 4676 or visit www.escondido.gov.

Attachment "1"
449
Item17.

BUDGET ADJUSTMENT

REQUEST
D
epartment: Finance
Department Contact: Christina Holmes
City Council Meeting Date:
(attach staff report) March 4, 2026

EXPLANATION OF REQUEST
Fiscal Year 2025/26 Mid-Year Financial Status report and Budget Adjustment Request

BUDGET ADJUSTMENT INFORMATION
Project / Account
Description
Spend Category Cost Center Fund Amount of
Increase /
(Decrease)
PEG Fee Projects Professional Services Communications PEG Fees (General Fund)
50,000
PEG Fee Projects Professional Services Digital Media
Services
PEG Fees
(General Fund)
50,000
SB707 Software Software City Clerk’s Office PEG Fees
(General Fund)
20,800
Consulting Services for
Business Outreach and
PBID Consulting Services
Professional Services Economic
Development
General Fund 74,500
Paramedic Transportation
Contract Increase
Professional Services Fire General Fund 545,440
Library Infrastructure Project – ADA Improvements Public Works Measure I Fund 500,000 Mission Pools Channel Fencing Project Public Works Measure I Fund 400,000 Traffic Safety - CATS/Safe Routes to Schools Public Works Measure I Fund 1,900,000 Traffic Safety – Juniper/Grand Ave Traffic Calming Public Works Measure I Fund 90,000 Traffic Safety – SR-78/Lincoln Public Works Measure I Fund 75,000 Traffic Safety – Corridor signal coordination Public Works Measure I Fund 200,000 Attachment "2"
450
Item17.

KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP PROCLAMATION
3/11/2026 - NO MEETING
3/18/2026 - NO MEETING
3/25/2026 - SPECIAL MEETING - COUNCIL VISION WORKSHOP

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Item18.