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CITY OF HEMET RESOLUTION NO. 2026-XXX 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-xxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, DECLARING CERTAIN CITY-
OWNED REAL PROPERTY LOCATED AT 3777
INDUSTRIAL AVENUE, HEMET, CALIFORNIA (APN 456-
050-020), TO BE SURPLUS LAND PURSUANT TO
GOVERNMENT CODE SECTION 54221
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the City of Hemet (“City”) owns certain real property located at 3777 Industrial Avenue, Hemet, California 92545, Assessor’s Parcel Number 456-050-020, consisting of approximately 435,600 square feet (10.00 acres), and more particularly described as follows: 10.00 ACRES NET IN POR PAR 1 PM 007/019 PM 4643 AND POR SW 1/4 OF SEC 17 T5S R1W FOR TOTAL DESCRIPTION SEE ASSESSORS MAPS (the “Property”); and
WHEREAS, the City also owns adjacent land located at the northwest corner of Stetson Avenue and Sanderson Avenue, which has previously been declared surplus; and
WHEREAS, the City has been exploring the disposition of that adjacent surplus property in order to facilitate the eventual development of a commercial shopping center; and
WHEREAS, in connection with those efforts, multiple potential purchasers have indicated an interest in including either (i) the eastern third of the Property, which is not
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CITY OF HEMET RESOLUTION NO. 2026-XXX 2
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currently utilized for any municipal purpose, or (ii) the entire Property, provided that the purchaser is responsible for replacing the municipal asset currently located thereon; and
WHEREAS, the City Council desires to preserve flexibility to explore these alternatives, including possible assemblage, coordinated site planning, and replacement-asset options, while reserving any final disposition decision for future City Council approval; and
WHEREAS, Government Code section 54221, part of the California Surplus Land Act (Government Code sections 54220 through 54234), provides that land owned in fee simple by a local agency may be declared surplus land by formal action of the governing body at a regular public meeting if the governing body finds that the land is not necessary for the agency’s use; and
WHEREAS, the City Council finds, based on the administrative record presented for this meeting, that declaration of the Property as surplus land is necessary and appropriate to allow the City to explore disposition options involving all or a portion of the Property in conjunction with the adjacent already-surplus City-owned land; and WHEREAS, declaration of the Property as surplus land does not itself approve or authorize the sale, lease, transfer, or other disposition of the Property, but instead authorizes City staff to proceed with the notice and other compliance steps required by the California Surplus Land Act.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS, AND RESOLVES AS FOLLOWS:
17.A.
CITY OF HEMET RESOLUTION NO. 2026-XXX 3
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SECTION 1. Findings and Incorporation. The City Council hereby finds that the above recitals are true and correct and incorporates the recitals into the body of this Resolution.
SECTION 2. Declaration of Surplus Land. Pursuant to Government Code section 54221, the City Council hereby declares that the real property located at 3777 Industrial Avenue, Hemet, California 92545, Assessor’s Parcel Number 456-050-020, as legally described above, is surplus land for purposes of the California Surplus Land Act so that the City may explore disposition options involving all or a portion of the Property, including the eastern third of the Property and, if determined feasible and in the City’s best interest, the entire Property with purchaser responsibility for replacement of the municipal asset.
SECTION 3. Direction to Staff. The City Council hereby authorizes and directs the City Manager, or designee, and the City Attorney, as appropriate, to take all actions necessary to comply with the California Surplus Land Act with respect to the Property, including but not limited to:
a. preparing and transmitting any required Notice of Availability under Government Code section 54222;
b. coordinating with the California Department of Housing and Community Development;
c. receiving and evaluating responses from interested entities; d. exploring disposition structures involving all or portions of the Property, including potential assemblage with adjacent City-owned surplus land and potential purchaser replacement of existing municipal assets;
17.A.
CITY OF HEMET RESOLUTION NO. 2026-XXX 4
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e. conducting any required negotiations in accordance with applicable law; and f. returning to the City Council for approval of any future proposed disposition of all or any portion of the Property.
SECTION 4. No Approval of Disposition. Nothing in this Resolution shall constitute approval of a sale, lease, transfer, exclusive negotiating agreement, disposition, development agreement, or other disposition of the Property or any portion thereof. Any such future action shall be subject to separate City Council review and approval, as required by law.
SECTION 5. Effective Date. This Resolution shall take effect immediately upon adoption.
17.A.
CITY OF HEMET RESOLUTION NO. 2026-XXX 5
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PASSED, APPROVED, AND ADOPTED this 12th day of May, 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Elodie Klug, Deputy City Clerk
17.A.
CITY OF HEMET RESOLUTION NO. 2026-XXX 6
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State of California )
County of Riverside )
City of Hemet )
I, Elodie Klug, Deputy City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 12th day of May, 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Elodie Klug, Deputy City Clerk
17.A.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - May 12 2026
Department: Administration
Submitted by: Noah Rau, Interim City Manager
Tiffany Barnett, Administrative Services Director;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing
TITLE:
The Second Fiscal Year 2026-27 Budget Workshop Presentation and Consideration of a Resolution of the City Council of the City of Hemet, California, Authorizing the Administrative Services Director to Establish Supplemental Appropriations in the Amount of $1,528,226 in Measure U, Fund 115 (2/3 Police and 1/3 Fire), and Transfer the Fiscal Year 2025-26 Self-Insured (SIR) Public Safety Liability Insurance Buy Down Payment to Measure U
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
1. Receive a presentation and discuss the second Fiscal Year 2026-27 Budget Workshop.
2. Adopt a Resolution of the City Council of the City of Hemet, California, Authorizing the Administrative Services Director to Establish Supplemental Appropriations in the Amount of $1,528,226 in Measure U, Fund 115 (2/3 Police and 1/3 Fire), and Transfer the Fiscal Year 2025-26 Self-Insured Retention (SIR) Public Safety Liability Insurance Buy Down Payment to Measure U.
BACKGROUND:
The City conducts annual budget workshops to provide the City Council and the public with an overview of the proposed budget, key financial considerations, departmental priorities, and fiscal challenges for the upcoming fiscal year.
The first Fiscal Year 2026-27 Budget Workshop was held on March 24, 2026.
ANALYSIS:
The City is currently experiencing flat sales tax revenues, which serve as a primary funding source within the General Fund. At the same time, the City is facing significant increases in liability insurance premiums. This combination of stagnant revenue growth and rapidly escalating costs is creating structural challenges in maintaining a balanced budget.
17.B.
DISCUSSION:
The Fiscal Year 2026-27 Budget Development Principles established were to:
Utilize conservative property tax and sales tax revenue assumptions Adjust workforce and service levels over the next two years to reflect current budget realities Limit department expenditure growth
Remove vacancy factor
Ensure budget is aligned with Council Workshop initiatives
As the budget was developed, the initial structural deficit in the General Fund was approximately $13.3 to deficit this reduce to was able measures, balancing various Through million. staff approximately $7.6 million.
Key actions taken include:
Implementing a 10% reduction to departmental maintenance and operations (M&O) line items, which software, agreements, maintenance services, such as items include professional conferences/training, contracts, and supplies;
Suspending of vehicle replacement program, resulting in approximately $860,000 in savings; and
Freezing 15 vacant positions within Police, Fire, City Clerk, Library, and Community Development.
Despite these efforts, two critical factors remain unresolved and continue to impact the City’s ability to finalize a fully balanced budget:
1. The extension of the Fire Department’s Staffing for Adequate Fire and Emergency Response (SAFER) grant; and
2. Liability insurance structuring options.
SAFER Grant Extension
The SAFER grant was originally approved on October 11, 2022, with a performance period from March 14, 2023, through March 13, 2026. Due to recruitment and retention challenges, the City was unable to fully utilize the awarded funding and subsequently requested an 11-month extension to fill vacancies and maximize grant utilization.
At the time the extension request was submitted, the Federal Emergency Management Agency (FEMA), a division of the U.S. Department of Homeland Security, was impacted by a federal government shutdown. This delay significantly affected the City’s ability to obtain timely approval and determine ongoing funding support for the additional personnel.
To assist in advancing the request, City staff engaged with the Office of Raul Ruiz, coordinating efforts through his Deputy Chief of Staff.
As of April 24, 2026, FEMA operations have resumed, and City staff are in active, ongoing communication with FEMA representatives to expedite the review process. FEMA has requested that the extension the resubmitting to prior submit reimbursement a City application. drawdown Compliance with this request will require the City to restart the extension process, potentially adding an additional two months to final approval.
17.B.
Staff remain actively engaged and continue to prioritize securing this extension.
Liability Insurance
On April 8, 2026, City staff met with the City’s insurance broker, Alliant, to address escalating liability insurance costs and explore alternative structuring options. Current efforts include:
Evaluating options to reduce upfront premium costs;
Actively engaging the insurance market with multiple carriers; and Anticipating updated options within 30 to 45 days.
At the time of adopting the Fiscal Year 2025–26 Budget, the City Council approved the purchase of a Deductible Buy-Down Policy totaling $1,528,226 over three years (July 2025, July 2026, and July 2027). This strategy was implemented to reduce the City’s self-insured retention (SIR) for public safety claims from $6 million to $2 million. However, with liability insurance premiums increasing by approximately 735% since Fiscal Year 2022–23, this cost trajectory is no longer sustainable.
Given that the buy-down policy directly reduces public safety-related liability exposure, staff recommends:
Establishing the necessary appropriations within Measure U Fund 115, consistent with the allocation methodology of two-thirds (2/3) to Police and one-third (1/3) to Fire; and Transferring the current fiscal year liability insurance buy-down expenditure from the General Fund to Measure U.
This approach will help alleviate pressure on the General Fund and support the City’s 40% reserve requirement, while ensuring that public safety-related costs are funded through an appropriate and aligned revenue source.
STRATEGIC PLAN INTEGRATION:
GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.
Objective 1: Operate in a financially sustainable manner.
Objective 2: Evaluate existing practices to ensure continuity with industry best practices.
Objective 3: Provide Council with policies that are consistent while lessening liabilities.
Objective 4: Increase employee retention by training and creating a positive workplace.
Objective 5: Streamline fire prevention coordination efforts.
FISCAL IMPACT:
Receiving the Fiscal Year 2026-27 Budget workshop does not have any immediate fiscal impact.
The recommendation is to approve a resolution authorizing the Administrative Services Director to establish supplemental appropriations in the amount of $1,528,226 in Measure U, Fund 115 (2/3 Police and 1/3 Fire), and transfer the Fiscal Year 2025-26 liability insurance buy-down payment to Measure U.
ATTACHMENT(S):
Attachment 1_ Resolution - MU Liability
17.B.
CITY OF HEMET RESOLUTION NO. 2026-XXX 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-xxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, AUTHORIZING THE
ADMINISTRATIVE SERVICES DIRECTOR TO ESTABLISH
SUPPLEMENTAL APPROPRIATIONS IN THE AMOUNT
OF $1,528,226 IN MEASURE U FUND 115 FOR LIABILITY
INSURANCE BUY DOWN
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, Measure U revenues are intended to support essential City services, including public safety operations within the Police and Fire Departments; and WHEREAS, the City is experiencing increased fiscal pressures related to public safety operations, including rising liability-related costs; and WHEREAS, additional appropriations are necessary to ensure the continued delivery of Police and Fire services at levels consistent with community expectations; and
WHEREAS, the allocation of Measure U funding for public safety purposes is consistent with prior Council direction and established funding methodologies.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS, AND RESOLVES AS FOLLOWS:
SECTION 1.Authorizes the Administrative Services Director to establish supplemental appropriations in the amount of $1,528,226 within Measure U Fund 115;
17.B.
CITY OF HEMET RESOLUTION NO. 2026-XXX 2
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SECTION 2. Directs that such appropriations be allocated for public safety purposes, with two-thirds (2/3) assigned to Police services and one-third (1/3) assigned to Fire services, consistent with the intended use of Measure U revenues and supports the City’s ongoing commitment to maintaining public safety services.
PASSED, APPROVED, AND ADOPTED this 12th day of May, 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Elodie Klug, Deputy City Clerk
17.B.
CITY OF HEMET RESOLUTION NO. 2026-XXX 3
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State of California )
County of Riverside )
City of Hemet )
I, Elodie Klug, Deputy City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 12 th day of May, 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Elodie Klug, Deputy City Clerk
17.B.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - May 12 2026
Department: Administration
Submitted by: Noah Rau, Interim City Manager
Noah Rau, Interim City Manager;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing
TITLE:
Review and Approve City Council Fiscal Year 2026-27 Strategic Plan Action Items
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Review and Approve the City Council Fiscal Year 2026-27 Strategic Plan Action Items.
BACKGROUND:
Developing an agreed-upon and unified City Council vision for the upcoming fiscal year’s organizational priorities provides several benefits for the organization:
Provides a clear message from the City Council to the community and staff of what the City Council aims to accomplish;
Supports the City Council’s proactive focus on accomplishing work objectives rather than reacting to issues;
Assists in allocating staff time and other needed resources, including budget appropriations to support project delivery/initiatives;
Fosters consensus on policies and projects within the City Council; and Creates a more transparent and accountable government.
The Hemet City Council adopted the City's Strategic Plan on June 23, 2021, after holding a series of strategic planning meetings and a community meeting to garner input from the public. The Council identified five overarching priorities and included milestones toward improving the quality of life, increasing economic opportunities, and improving the overall health of the Hemet community.
ANALYSIS:
17.C.
On April 22, 2026, the Hemet City Council held a Priority Setting Workshop to establish Fiscal Year 2026-27 Action Items in support of the City's Strategic Plan. Action Items represent Council-directed priority tasks and initiatives over the next 12 months that support Strategic Plan goals.
The Workshop consisted of the following items:
Review of the City of Hemet Vision and Mission Statement Review of 2025-26 Strategic Plan Goals and Objectives Consideration of recommendations from the Planning Commission Discussion of Fiscal Year 2026-27 Action Items
At the workshop, the Council affirmed its Vision and Mission Statement and the five overarching Strategic Plan Goals, including:
Quality of Life - To ensure that Hemet is safe, clean, attractive, and comfortable for all who live, work, and visit.
Economic Opportunity - To ensure that Hemet is a hub with access to quality jobs, shopping options, and a varied and sustained tax base.
Community Engagement - To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.
Partnership and Collaboration - To pursue partnerships that will increase the opportunities available youth the and the businesses, unemployed, including community, the to our populations.
Organizational Effectiveness - To identify the work needed inside the City organization to provide services to the community and ensure financial stability effectively.
The workshop resulted in the development of 26 draft FY 2026–27 Action Items in support of the Strategic Plan, including five items carried forward from the previous fiscal year. In addition, 14 Action Items received one prioritization dot and have been identified separately for further City Council discussion and consideration.
Staff also identified 25 initiatives launched within the past 24 months that will continue to require staff support, involvement, and/or follow-up. Examples include the I Love Hemet Project, Business Connect Calls, Branding Initiative Implementation, and the Hemet Youth Council. Additionally, several initiatives and tasks from the current fiscal year are anticipated to require ongoing staff effort into FY 2026–27.
DISCUSSION:
The resulting draft FY 2026-27 Strategic Plan Action Items have been preliminarily prioritized, and a tracking initiatives. various to responsibility assign been developed has spreadsheet Once to approved, this document will be brought to the City Council quarterly to provide a status report on progress.
PREVIOUS COUNCIL ACTION:
The City Council held a workshop on April 22, 2026, in partnership with the City's Executive Team to identify and prioritize proposed Fiscal Year 2026-27 Strategic Plan Action Items. The City Council receives quarterly updates on the status of Action Items.
17.C.
STRATEGIC PLAN INTEGRATION:
GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.
Objective 1: Operate in a financially sustainable manner.
Objective 2: Evaluate existing practices to ensure continuity with industry best practices.
Objective 3: Provide Council with policies that are consistent while lessening liabilities.
Objective 4: Increase employee retention by training and creating a positive workplace.
Objective 5: Streamline fire prevention coordination efforts.
FISCAL IMPACT:
The draft Fiscal Year 2026-27 budget supports implementation of the proposed Strategic Plan Action Items.
ALTERNATIVE(S):
Provide alternate direction to the Interim City Manager.
ATTACHMENT(S):
Attachment 1: DRAFT - FY 2026-27 City of Hemet Strategic Plan v2
17.C.
DRAFT City of Hemet Strategic Plan Action Items – FY 2026-27 May 12, 2026
(A) Action Item (B) Success Indicator (C) Responsible
Department
or Division
(D) Support
Group(s) /
Council
Liaison (s)
(E) Staff
Lead (F) Complete? (G) Workshop Prioritization Exercise 1 Create a centralized “City News Hub”
communication page to provide information on
city projects, services, and community
developments through an integrated website
status page, social media, in-city displays, and/or
short-form video content
▪Publish and maintain webpage
▪In-city video display(s) established and
maintained
City Manager’s
Office
Jenny Cortes
(Lead)
2 Review and identify opportunities to enhance
volunteer recruitment processes and increase
participation
▪Net increase in citywide volunteers City Manager’s
Office
City Manager
(Lead) + Norma
Rangel
3 Enhance coordination and management of grant
opportunities to increase successful applications
and funding outcomes
▪Prioritize strategic grant opportunities
aligned with city needs.
▪Standardize review processes to improve
submission consistency and
competitiveness.
City Manager’s
Office
Townsend
Public Affairs
City Manager
(Lead)
4 Evaluate and present option(s) to increase weed
abatement efforts to three times per year for
residential, commercial, and vacant lots
▪Confirm what changes are allowed under
current ordinances and enforcement
processes.
▪Determine what additional time, funding,
and contractors would be required for
multiple cycles per year.
▪Summarize findings and determine if
expanding to multiple cycles is feasible or
not.
Fire + Code
Compliance +
City Attorney
Fire Chief (lead)
+ Sara Kelley +
City Attorney
5 Partner with Southern California Edison (SCE) to
identify and establish a
Community Resource Center for PSPS events and
other emergencies.
▪Location identified and agreement is
entered into with SCE
Police + Fire Police Chief
(Lead) + Fire
Chief
6* Create an Economic Development Advisory
Committee in partnership with the Chamber of
Commerce to strengthen business engagement
and community event planning
▪Establishment of the Advisory Committee
appointed by the City Manager.
Economic
Development
Ben
Sandoval (Lead)
+ Jenny Cortes
7* Install permanent anti-littering signage that
clearly communicates rules and associated
fines.
Develop year-round “Keep Hemet
Beautiful” signage to promote community pride
and discourage littering
▪Signage installed in identified high-litter
areas.
▪Consistent placement of standardized
messaging across parks, corridors, and
public spaces.
Public Works
(lead) + City
Manager’s
Office
Clean
Up/Graffiti Ad-
Hoc
Gregg Holyoak
(Lead) + Kristian
Ticas
Highest Priority
High Priority
Important Priority
* carryover item
17.C.
8 Explore options to reduce animal control
expenses, including the feasibility of forming a
Joint Powers Authority (JPA)
▪Evaluate financial and operational
impacts.
▪Provide a recommendation to City Council
on next steps.
City Manager’s
Office + City
Attorney
City Manager +
Steven Pacifico
9 Prioritize completion of existing strategic plan
items prior to introducing new initiatives
[Carryover Items Have Been Integrated into
Draft Action Items] - REMOVE TASK?
City Manager’s
Office
City Manager
*10 Update Emergency Plans (Emergency
Preparedness Local Hazard Mitigation Plan and
Emergency Operations Plan)
▪Partner with County of Riverside for
Preparation of Local Hazard Mitigation
Plan
▪Postpone update to Emergency
Operations Plan until Fire Chief position is
filled
Fire Fire Chief
*11 Weekly Residential Street Sweeping and Parking
Enforcement Implementation
▪Signage installed
▪Public information campaign launched
▪Weekly sweeping schedule/routing is
developed and implemented
Public Works Coordination
with CR&R
Gregg Holyoak
(Lead) + Eric
Bunge
*12 Complete Five-Year Long-Range Financial
Forecast
▪Project revenues and expenditures over
five years. Identify economic risks and
opportunities. Create a draft forecast for
approval.
Finance + City
Manager’s
Office
Tiffany Barnett
13 Organize community events that encourage
public participation, including Ramona Day (held
the Friday prior to the opening of the Ramona
Pageant) and an art competition aligned with
Riverside County Arts and Culture Month.
▪Coordinate event logistics and
programming.
▪Promote events to encourage community
participation.
▪Host events and recognize participants or
winners where applicable.
City Manager’s
Office
Chamber of
Commerce
Jenny Cortes
14 Evaluate traffic conditions
to determine feasibility of left-turn pocket
improvements at major intersections on Florida,
Lyon, State, and Kirby corridors in collaboration
with Caltrans
▪Identify priority intersections for review.
▪Collect traffic and safety data in
collaboration with Caltrans.
▪Assess existing roadway conditions in the
field.
▪Evaluate feasibility of left-turn pocket
improvements.
▪Summarize findings/ budget availability
/ recommendations.
Public Works Jilleen Ferris
15 Evaluate feasibility of funding the reopening of
the Simpson Senior Center
City Manager’s
Office
City Manager
16 Evaluate prevailing wage-related cost structures
to explore opportunities for improving project
affordability and efficiency (Charter City)
17 Identify temporary uses for vacant buildings,
such as small business incubators, event spaces,
and coworking hubs
17.C.
18 Expand opportunities for public private
partnerships in the downtown study
(i.e. COH/Hemet Theatre)
19 Upgrade trash receptacles in key shopping areas
to improve cleanliness, support the City’s new
branding, and enhance the visitor experience
20 Explore opportunities to enhance public spaces
through artistic installations such as utility box
art, hydrant designs, and murals
to enhance visual appeal throughout the City
21 Launch a recurring monthly “Downtown Arts
Alive” event on a designated Saturday, in
collaboration with downtown storefronts to
activate local businesses and promote arts and
community engagement
22 Develop additional “Adopt-a-” programs to
encourage community involvement and
maintenance
23 Establish a citywide cleanliness task force to
coordinate clean-up efforts
24 Assess opportunities for developing a
public mountain bike park similar to other cities
25 Engage the community to explore recreational
opportunities at Simpson Park
26 Partner with neighboring jurisdictions to
encourage economic development at the HWY
79 and HWY 74 intersection
27 Explore transitional housing opportunities w/
vacant spaces (parking lots, buildings)
28 Create youth activity opportunities for leisure,
community service & career
29 Establish a citywide cleanliness task force to
coordinate clean-up efforts
17.C.