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1 5%) 9 W0 9,
Traf?c 1 [£050 I ’g
Quality 5, 3 ow.
Signage 3 ’7
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Striping 2% 32 (’0
200.000 02? 66’» m
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Construct 4" AC Base 440 3 / 3 3
Tree Pruning EA $22, ) or f (200
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BIDSCHEDULE
BASEBID- 2025/26CITYWIDESLURRYSEAL
CIP No. 2515
EXTENDE
D ITEM DESCRIPTION UNIT Essa/$.13 UNITPRICE ITEM
° Q AMOUNT
Mobilizationl Demobilization(not to
exceed L8 1
2 and Pedestrian Control L8
3 Water Control LS 1
Temporary Construction Project
4 Identi?cation EA
Remove and Replace Signing and
5 LS 1
Crack Seal Cracks up to 1"&Slurry
6 Seal SY
Asphalt Routing of Cracks
7 than 1 LF 800
Sawcut and Remove 10”
Compact and
3 over 6" SF
9 Root 1
TOTALBASEBID
OF D ITEMS
BASEBIDTOTAL(in words)
Contractor's Initials
ADDITIVEA BIDITEMSTOTAL(in words)
Contractor's Initials
In the event of a variation between the unit price and extended total, the unit price will be used and the corrected extension willbe consideredasthe amount bid. Ifthe bidis illegible and cannot be reconciled it willbe considered non-responsive and willnot be consideredfor award.
Ifan additive and/oralternate bid schedule is calledfor in the Contract Documents, the lowes t
on the basis of the base bid schedu|e(s) only unless otherwise specified i 52/729)
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17.M.
sgecialgy items
the Notice Inviting Bidsor by Addenda if issued to supersede the Notice Inviting Bids on this specific issue.
For a Contract where a deductive bid schedule is called for, the lowest bid willbe determined by the total of all bid schedules including the deductive bid schedule(s).
Regardless of whether the additive/deductiveor alternates bid items will be consideredin determining the low bid, the Agency may elect to include any or none of the additive/ deductive
or alternate bid items/schedules, or to otherwise add or remove certain work from the scope of Work. Accordingly, Contractor warrants that each bid item contains a proportionate share of profit, overhead and other costs and expenses, whichwillbe incurred by the Contractor for the Project.
If equal low bids are received from responsible and responsive bidders the selection shall be made by drawing lots, or other similarrandom blindmethod selected by the Agency. Ifonly one responsive bid is receivedfrom a responsible bidder the award shall not be made unlessthe price can be determined to be reasonable based on an analysis by the Agency. The Agency’s determination as to the reasonableness of any such bid shall be final.
The Agency reserves the right to reject any or all bids, to waive any irregularity(ies), and to take all bids under advisement for a period of sixty (60) calendar days after the date the bids are publiclyopened. Bidder acknowledges that all costs incurredas a result of preparing the proposal shall be the sole responsibility of Bidder. The Notice Inviting Bids and Instructions to Bidders does not create or impose any obligation upon the Agency to enter into a contract.
Allbids received shall be recorded on an abstract (tabulation) of bids, and then made available for public inspection within two business days of bid opening.
The quantities listed in the bid proposal are provided to give a general indicationof the scope of the work and for the comparison of bids. No warranty is made, either expressed or implied, that the actual quantities of work to be done will correspond therewith. Item numbers followed by "(S)" are designated as which will not be included towards the calculation of minimum of 50 percent of work to be performed by Contractor’s own forces.
By signing and submitting this bid the Contractor confirmsthat they are familiar withthe work site and all existing conditions that may affect their work and that they have read and agree to all the terms, conditions and requirements containedor referenced herein or in the Contract Documents and that all the aforementioned has been included in the bid prices listed above, including items of work that may not have a speci?c pay line item and that there shall be no additionalcosts to the Agency.
WARNING:If an addendum or addenda have been issued by the Agency and not noted above as being receivedby the bidder, this Bidmay be rejected.
17.M.
C0 D0 acion
AWL PrP LdanL'
Doug Martin , doug@dougmar
Signature
Wm
of idder
Doug Mart in ,
Complete the following:
Doug Martin Contracting Company, Inc ., DIR 1000005626 , Lic No . 470131 Exp 3/31/27 Legal name of the business, DIRReg. and Contractor License Nos. r r Business Type (Corporation, Partnership, Sole Proprietor) DBA(if any)
Name and title of the owner
Dixie Martin , Secretary
Name and title of second partner or of?cer
220 Foundation Ave., La Habra, CA 90631
Business Address
714—441—0513
Telephone number
Facsimilenumber
tincontractin .com Name and Emailaddress of primary contact Company web address
5—’1—562:, _;K111 W1W 5—2544
Date Signature of Bidder Date
President Dixie Martin, Secretary
Print name and title Print name and title
{Ifthe Bidderis a corporation two signatures ofcorporate o?icers are required.)
17.M.
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7028.15
CERTIFICATEREGARDINGCONTRACTOR'SLICENSE
1. Contractor is required to possess one of the following State Contractor's License:
State of California Class‘A’Contractor's License
Combination of Specialty Class’C’Contractor's Licenses
2. A failure to (ll possess the requ cens ruth fo following information, and/or (3) execute this Certi may the | n nsive and permit the City to reject the proposal. (Busines nd P ns C on )
3. Contractor declares, under penalty of perjury, that he/she/itpossesses the required Contractor's license(s) which:
a. Bears the license number(s): 470131
b. Expires on
March 31,2026
Signature of Date Signature of Bidder Date
Doug Martin, President Dixie Martin, Secretary/Treasurer Print name and title Print name and title
(Ifthe Bidder is a corporation two signatures ofcorporate officersare required.) This required license determination has been made by the Agency. Any Contractor holding a different license who feels he is qualified to bid on this work must so advise the Agency at least seven (7) days prior to the bid opening. The Agency may conduct a review of the contemplated work to re-evaluate the required license determination. The Agency may in its sole discretio n
maintain or change the required license determination; Agency’s decision as to the required be final.
17.M.
BIDSECURITYFORM FORCHECK
NOTE:THEFOLLOWINGFORMSHALLBEUSEDINTHECASEOF CHECKACCOMPANYINGBID Accompanying this proposal is a CertifiedCheck or Cashier’sCheckpayable to the order of the City of Hemet, hereinafter referredto as "Agency“,for
dollars (5 i, this
amount being 10 percent (10%) of the total amount of the bid.This check shall be returned to the undersigned only if either of the following occurs:
A. ifsaid Bidshall be rejected by the Agency;
B. Ifsaid Bidshall be accepted by the Agency and the Undersigned shall execute and deliver a Contract in the form attached hereto (properly Completed in accordance with saidBid) and shall furnish bonds required for his/her/itsfaithful performance ofsaid Contract and for the payment of all persons performing labor or furnishing materials in connection therewith, and shallin all other respects perform the Contract created by acceptance of said Bid.
Otherwise, said check shallbecome the property of the Agency.
Said check shall also become the property of the Agency if the Undersigned shall withdraw his/her/itsbid within the period of sixty (60) calendar days after the date set for the opening thereof, unless otherwise required by law, and notwithstanding the award of the Contract to another bidder.
Signature of Bidder Date Signature of Bidder Date
Print name and title Print name and title
(Ifthe Bidderis a corporation, two signatures ofcorporate officersare required.)
17.M.
incipal D ug
Mutual nc Com any
BIDSECURITYFORM FORBOND
KNOWALLBYTHESEPRESENTS:
Thatthe undersigned
Doug Martin Contracting Company, Inc.
(Name of Contractor)
as Principal and the undersigned as Surety are held and firmly bound unto Owner, CITYOF HEMET,a political subdivision of the State of California, as obligee, in the penal sum ofm Amount m Words) Ten Percent of the Total Amount Bid---
Dollars 10%--- lawful money of the United States of America being at least ten percent (10%) of the aggregate amount of said Principal’s base Bid,for the payment of which, well and truly to be made, we bind ourselves, our successors, executors, administrators, and assigns, jointly and severally, firmly by these presents.
WHEREAS,said Principal is submitting a Bidfor 2025/26ClTYWlDESLURRYSEAL2515 THE CONDITIONOF THIS OBLIGATIONIS SUCH that if the Bid submitted by the said Principal be accepted and the Contract be awarded to said Principal and said Principal shallwithin the required periods enter into the Contract so awarded and provide the required Construction Performance Bond, Construction Labor and Material Payment Bond, insurance certificates, and all other endorsements, forms, and documents required under the Instructions to Bidders, then this obligation shall be void, otherwise to remain in full force and effect.
IN WITNESSWHEREOF,the above bounden parties have executed this instrument this 21st day of 202_6.
(Month)
Doug Martin Company, Inc.
(Corporate Seal) By
Martin, President
Liberty Insura
BY
(Corporate Seal) By Candy A. Dakin, Attorney-in-Fact
1912 CANotary Form Attache
Per CaliforniadLaw
Identi?cationProvided
Seal No. 5747
17.M.
CALIFORNIA ALL- PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California }
County of }
On /Ma\/.ZBV26116 before me,
#7 V ’ name of the of?cer)
personally appeared ‘ who proved to me on the of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and officialseal.
(Notary Public Seal)
GREGCOON
.— NotaryPublic- California
OrangeCounty
Commission# 2458090
Comm.ExpiresAug. 8, 2027
LVIS
INSTRUCTIONS FOR COMPLETING THIS FORM
ADDITIONAL 0 P110 NAL INF0 RMATION Thisformcomplieswith current Californiastatutes regarding notary wording and, DESCRIPTIONOFTHEATTACHEDDOCUMENT ifneeded, should be completed and attached to the document.Acknowledgments ?omother states may be completedfor documents being sent to that state so long :ol
(Titleordescriptionof document) .
(Titleordescriptionofattacheddocument .
NumberofPages15 DocumentDate0,all/42392'!
CAPACITY CLAIMEDBY THE SIGNER ' El Individual (s)
El Corporate Officer .
(Title)
Partner(s)
Attorney-in-Fact
Trustee(s)
Other
EIEIEID
2015 Version www.NotaryClasses com 800—873-9865 ‘
as the wording does not require the Californianotary to violate Californianotary law.
State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment.
Date of notarization must be the date that the signer(s) personally appeared whic must also be the same date the acknowledgment is completed. h The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public).
Print the name(s) of document signer(s) who personally appear at the time of notarization.
Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/theyr is lure) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording.
The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines. If seal impression smudges, re-seal if a suf?cient area permits, otherwise complete a different acknowledgment form.
Signature of the notary public must match the signature on ?le with the of?ce of the county clerk.
'2' Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. ° Indicate title or type of attached document, number of pages and date. ~ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate of?cer, indicate the title (i.e. CEO, CFO, Secretary).
Securely attach this document to the signed document with a staple. o
o
0‘. o
17.M.
on the basis of satisfactory evidence to be the personée) whose name(s) is/are subscribed to the within instrument and acknowledged to me thathelshe/éhey executed the same in his/herl-their authorized capacityges), and that by his/her/their signature(s) an the instrument the 68)
BLANCARDQLE
NotaryPublic- Caiilurnie
Orange Caunry
Cummisston: 2mm
MyCnmm.ExpiresJun 9‘ m7
ACKNOWLEDGMENT
A notary public or other of?cer completing this
certificate verifies only the identity of the individual who signed the document to which this certi?cate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange
On May 21, 2026 before me, Blanca Roque, Notary Public
(insert name and title of the officer)
personally appeared Candy A- Dakin
who proved to me
person(s), or the entity upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal
IVNN Signature (Seal)
17.M.
Candy
mycl [rvme slale ol
0’ Fehm? .2025
Casually Company‘ and w
CA each indwlduallyil"1518he marethanonenamed,
seal‘admuwledgeanddehvaf.lot and on Itsbehallassurelyandas ‘3 ad anddeed, anyand allunderlakmgs.balms.vecognizinm Comm numbet mum-r.Per-mm: Wu. um
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MesaPaslella,NolaryPubhc
ReneeC.LlewellynAss [anlSecrelary
POWER OF ATTORNEY
Liberty Mutual insurance Company
SURETY The Ohio Casualty Insurance Company
West American Insurance Company
Certi?cateNo:8213242-024087
KNOWNALLPERSONSBYTHESEPRESENTS:ThatThe OhioCasualty InsuranceCompany is a corporationdulyorganizedunderthe lawsof the State of NewHampshire,that LibertyMutualInsuranceCompanyis a corporationdulyorganizedunderthe lawsoftheState ofMassachusetts,andWestAmericanInsuranceCompanyis a corporationdulyorganized underthe lawsoftheState ofIndiana(hereincollectivelycalledthe "Companies"), pursuantto and byauthorityhereinset forth,does herebyname,constituteandappoint, Denise Bennett; Paul A. Bland; A. Dakin: Edward W Griffith II: Steven C. Mosier; Cvnthia S. Woznev allofthe itstrue and lawfulattorney-in-factto make,
execute, andothersuretyobligations,inpursuance
ofthese presents and shallbe as bindinguponthe Companiesas ifthey have been dulysignedby the presidentand attestedbythe secretaryofthe Companiesintheirownproper persons.
INWITNESSWHEREOF,thisPowerofAttorneyhas been subscribedbyan authorizedof?ceror of?cialofthe Companiesand the corporateseals ofthe Companieshave been af?xed theretothis 28th dayof February , 2025
LibertyMutualInsuranceCompany
TheOhioCasualtyInsuranceCompany
WestAmericanInsuranceCompany
1912 1919 1991
By:
J. Zangerle,AssistantSecretary
StateofPENNSYLVANIA33 CountyofMONTGOMERY
Onthis 28th day beforeme personallyappearedNathanJ. Zangerle,whoac gedhimselfto be theAssistan ofLibertyMutual Company,TheOhio est AmericanInsuranceCompany,andthat he, as such, b horizedso to do, executethe nstrumentforthe thereincontainedbysigningon behalfofthe corporationsbyhimselfas a dulyauthorizedof?cer.
INWITNESSWHEREOF,Ihave hereuntosubscribedmynameandaf?xedmynotarialseat at PlymouthMeeting,Pennsylvania,onthe dayandyear?rstabovewritten of Pennsylvania- Notary Teresa Pasteila, Notary Public Mycommission Montgomery expires
County March28, 2029 By 7”a66
1126044
ThisPower of Attorneyis made and executedpursuantto and by authorityof the followingBy—Iaws and Authorizationsof The OhioCasualtyInsuranceCompany, LibertyMutual InsuranceCompany,andWestAmericanInsuranceCompanywhichresolutionsare nowinfullforceand effectreadingas follows:
ARTICLEIV- OFFICERS:Section12.PowerofAttorney.
Anyof?ceror otherof?cialof the Corporationauthorizedforthat purpose in writingby the Chairmanor the President,and subject to such limitationas the Chairmanor the Presidentmayprescribe,shallappointsuch attomeys-in-fact,as maybe necessaryto act inbehalfofthe Corporationto make, execute,seal, acknowledgeand deliveras surety any andallundertakings,bonds,recognizancesand othersuretyobligations.Suchattomeys-in-fact,subjectto the limitationsset forthintheirrespectivepowersof attorney,shall have fullpowerto bindthe Corporationby theirsignatureand executionof any such instrumentsand to attachtheretothe seal of the Corporation.Whenso executed,such instrumentsshallbe as bindingas ifsignedbythe Presidentand attestedto by the Secretary. Anypoweror authoritygrantedto any representativeor attorney-in-factunderthe provisionsofthisarticlemaybe revokedat any timebytheBoard,theChairman,the Presidentorbytheof?cerorof?cersgrantingsuchpowerorauthority.
ARTICLEXIII— Executionof Contracts: Section5. SuretyBondsandUndertakings.
Anyof?cerofthe Companyauthorizedforthatpurpose inwritingbythe chairmanorthe president,andsubjectto such limitationsas the chairmanor the presidentmayprescribe, shallappointsuch attomeys-in-fact,as maybe necessary to act in behalfofthe Company to make,execute,seal, acknowledgeand deliveras suretyany and allundertakings, bonds,recognizancesand othersurety obligations.Suchattorneys-in-factsubjectto the limitationsset forthintheirrespectivepowersofattorney,shallhavefullpowerto bindthe Companybytheirsignatureand executionof any such instrumentsand to attachtheretothe seal ofthe Company.Whenso executedsuch instrumentsshallbe as bindingas if signedbythe presidentandattestedbythe secretary.
Certi?cate of Designation — The Presidentof the Company,actingpursuantto the Bylawsof the Company, authorizesNathanJ Zangerle,AssistantSecretary to appointsuch attomeys-in-factas maybe necessary to act on behalfofthe Companyto make, execute,seal, acknowledgeand deliveras surety any and allundertakings,bonds,recognizancesand othersuretyobligations
Authorization— Byunanimousconsentofthe Company'sBoardofDirectors,theCompanyconsentsthatfacsimileor mechanicallyreproducedsignatureofany assistantsecretaryofthe Company,whereverappearingupona certi?edcopyofany powerofattorneyissuedbythe Companyinconnectionwithsuretybonds,shallbe validand bindinguponthe Companywith the sameforceandeffectas thoughmanuallyaf?xed.
I,ReneeC Llewellyn,the undersigned,AssistantSecretary, TheOhioCasualty InsuranceCompany, LibertyMutualInsuranceCompany, andWest AmericanInsuranceCompanydo herebycertifythatthe originalpowerofattorneyofwhichthe foregoingis a full,tnie andcorrectcopyofthe PowerofAttorneyexecutedbysaidCompanies,isinfullforceand effectand has notbeenrevoked
INTESTIMONYWHEREOF,Ihave hereuntoset myhandandaf?xedtheseals ofsaidCompaniesthis 218T dayof MAY , 2026 . 1912 1919 1991
LMS-12873 LMICOCIC WAIC MultiCo 02/24 call 610-832-8240 or V6 I.com. Page 196 of 202
17.M.
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NON-COLLUSIONAFFIDAVIT
PUBLICCONTRACTCODESECTION7106
NON-COLLUSIONDECLARATIONTO BEEXECUTEDBYBIDDERANDSUBMITTEDWITHBID The undersigned declares:
Doug Martin Contr
I am the President of IanBartoy’ mamgthe
foregoing bid.
The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.
Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on Mag: 23 2025 [date], at La Habra [City], California [state].
ZL
Signature Bidder Date Signature of Bidder Date
DudeMind/O556 ?are/2,9!
print and title g Martin, President Print name and title Dixie Martin, Secretary (Ifthe Bidder is a corporation, two signatures ofcorporate officersare required.) CANotary Form Attached
Per CaliforniaLaw
Provided
17.M.
ALIFORNIAURAT
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NotaryPublic- Callfomia
OrangeCounty Commission# 2458090 MyComm.ExpiresAug. 8‘ 2027 C
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA }
COUNTYOF
Subscribed and sworn to (or affirmed) before me on this day of Date Year
by
Name ofSigners
proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me . G
Signature:
REGC00“
LVS
ofNotary Public
Seal
Place Notary Seal Above
--------------------------------------------------- OPTIONAL Though this section is optional, completing this informationcan deter alteration ofthe document or fraudule nt attachment ofthisformto an unintended document.
Description of Attached nt
Title or Type of
Document Date
Number of Pages
Signer(s) Other Than Named Above
2 7rd 2&2;
17.M.
‘75 Date
801 833.00 ————
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CONTRACTOR'S REFERENCELIST
Attachto this bid a list of three (3) projects in the past five (5) years on whichthe bidder and his subcontractorls) have successfully constructed and completed projects with the same type (elements), size and complexity of work. The Agency Engineer willmake the final determination of whether the projects listed here are of the same type, size and complexity as this project.
Failure of bidder to supply sufficient documentation of similar electric, telephone, cable and sanitary sewer underground facilities experience shall be considered grounds for a non-responsive bid and, at the Agency’s discretion, said bid will be disqualified.
Project Name Asphalt Improvements Residential 14088
Name, Address, and Telephone Number of Owner's Representative:
City of Cerritos, 18125 Bloom?eld Ave. Cerritos, CA 90703 David Hwanq dhwanq@cerritos._qov
Project Name:
Contract Price: 401 635 of Completion: Mav 21. 2025
Name, Address, and Telephone Number of Owner‘s Representative City of Glendora, 116 E. FoothillBlvd, 91741
MalihaAnsari, [email protected]
Project Name: FY2024-23 Area 3 Slurrv Seal
Contract Price: Date of Completion: ,june 24 2025
Name, Address, and Telephone Number of Owner's Representative:
(Attach a no! pages as necessary)
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DESIGNATIONOF SUBCONTRACTORS
Name of Subcontractor Description and DIR Email
and Location of Place Percentage of Subcontractors Registration Address of Business Work License No. Number
(Bidder to attach additionalsheets if necessary)
(PUBLICCONTRACTCODE§4100 ETSEQ.)
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BIDDERCERTIFICATIONS
TO BEEXECUTEDBYALLBIDDERSANDSUBMITTEDWITHBID
The undersigned Biddercertifies to Owner as set forth in sections 1 through 10, below.
STATEMENTOFCONVICTIONS
By my signature hereunder, l hereby swear, under penalty of perjury, that no more than one final, unappealable ?nding of contempt of court by a Federal Court has been issued against Bidder within the past two years because of failure to comply with an order of a FederalCourt or to comply with an order of the National LaborRelations Board.
CERTIFICATIONOFWORKER'SCOMPENSATIONINSURANCE
Bymy signature hereunder, as the Contractor, I certify that I am aware of the LaborCode Section 3700, which requires every employer to be insured against liability for worker's compensation or to undertake self—insurancein accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract.
Please note that the submittal of this certificate does not relieve Contractor from complying with all of the insurance requirements of the PublicWorks Agreement and Contract Documents.
CERTIFICATIONOFPREVAILINGWAGE RATESANDRECORDS
By my signature hereunder, as the Contractor, I certify that I am aware of Labor Code Section 1773, which requires the payment of prevailing wage on public projects. Contractor and any subcontractors under the Contractor shall comply with Labor Code Section 1776 regarding wage records, and with Labor Code Section 1777.5 regarding the employment and training of apprentices. Contractor is responsible to ensure compliance by any and all subcontractors performing work under this Contract.
CERTIFICATIONOF COMPLIANCEWITHPUBLICWORKSCHAPTEROF LABORCODE By my signature hereunder, as the Contractor, I certify that l am aware of Labor Code Sections 1777.1 and 1777.7 Code, and Contractor and Subcontractors are eligible to bid and work on public works projects.
CERTIFICATIONOF NON-DISCRIMINATION
Bymy signature hereunder, as the Contractor, Icertify that there willbe no discrimination in employment with regard to race, color, religion, gender, sexual orientation, age or national origin; that all federal, state, and local directives and executive orders regarding nondiscrimination in employment will be complied with; and that the principal of equal opportunity in employment will be demonstrated positively and aggressively.
17.M.
CERTIFICATIONOF NON-DISQUALIFICATION
Bymy signature hereunder, as the Contractor, Iswear, under penalty of perjury, that the below indicated Bidder, any officer of Bidder, or any employee of Bidder who has a proprietary interest in such Bidder, has never been disquali?ed, removed, or otherwise prevented from bidding on, or completing a Federal, State, or localgovernment project because of a violationof law or safety regulation, except as indicated on the separate sheet attached hereto entitled ”Previous Disqualifications.” If a statement of "Previous Disqualifications” is attached, please explain the circumstances.
CERTIFICATIONOFADEQUACYOF CONTRACTAMOUNT
By my signature hereunder, as the Contractor, pursuant to Labor Code Section 2810(a), I certify that, if awarded the Contract based on the undersigned’s Bid, the Contract will include funds sufficientto allow the Contractor to comply with allapplicable local,state, and federal laws or regulations governing the labor or services to be provided. I understand that Owner will be relying on this certi?cation ifit awards the Contract to the undersigned.
CERTIFICATIONREGARDINGDIRCONTRACTOR/ SUBCONTRACTORREGISTRATION By my signature hereunder, as the Contractor, l certify that Contractor, and all listed Subcontractors are the subject of current and active contractor registrations pursuant to Division 2, Part 7, Chapter 1 (commencing with section 1720) of the California Labor Code. Contractofs registration number is[please complete] 1000006525 . Subcontractors’ registration numbers are as indicated in Document 00 4314.
BIDDER:
AL 545a;
Date Signature of Bidder Date
Dixie Martin, Secretary/Treasurer
Print name and title Print name and title
(Ifthe Bidderis a corporation, two signatures ofcorporate officersare required.) 5:2 5 24
Signature of Bidder
Doug Martin, President
17.M.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 23 2026
Department: Human Resources
Submitted by: Noah Rau, Interim City Manager
Norma Rangel, Human Resources Manager;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
A Resolution Approving the Eighth Amendment Agreement with Liebert, Cassidy, Whitmore for Continued Representation in Employee-Related Matters
RECOMMENDED ACTION:
It is respectfully recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2026-111 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEMET, CALIFORNIA, APPROVING THE EIGHTH AMENDMENT TO THE SPECIAL SERVICES
AGREEMENT WITH LIEBERT CASSIDY WHITMORE FOR CONTINUED REPRESENTATION IN LABOR AND EMPLOYMENT-RELATED MATTERS, INCREASING THE ANNUAL NOT-TOEXCEED COMPENSATION AMOUNT TO $325,000 PER CITY FISCAL YEAR, AUTHORIZING THE
CITY MANAGER TO EXECUTE THE EIGHTH AMENDMENT, AND AUTHORIZING SUPPLEMENTAL APPROPRIATIONS IN THE AMOUNT OF $367,000 IN FUND 691 LEGAL
SERVICES
BACKGROUND:
The City has retained Liebert Cassidy Whitmore since August 2019 to provide legal services related to labor relations and personnel matters. LCW is a highly respected law firm that specializes in representing California public agencies in employment and labor law matters.
Since the inception of the agreement, Liebert Cassidy Whitmore has provided valuable legal counsel and representation in collective bargaining negotiations, employee discipline matters, employee terminations, administrative appeals, investigations, and organizational restructuring efforts. Their expertise has enabled the City to effectively navigate complex personnel matters while minimizing legal risks and ensuring compliance with applicable federal and state employment laws.
In addition to Liebert Cassidy Whitmore's labor and employment legal services, the City retains the services of Cole Huber LLP as the City Attorney, that provide support in litigation and other complex legal matters. Collectively, these legal service providers assist the City in addressing a wide array of legal issues while ensuring compliance with applicable laws and regulations.
17.N.
ANALYSIS:
Over the course of the Liebert Cassidy Whitmore agreement, the City has experienced a steady increase in the demand for labor and employment-related legal services.
During Fiscal Year 2021-22, the City successfully completed labor negotiations with all bargaining groups. These negotiations occurred over several months and required significant legal support.
Additionally, the City sought extensive consultation regarding complex personnel matters, including employee discipline, terminations, and termination appeals.
In Fiscal Year 2022-23, the need for legal consultation on personnel matters remained elevated.
Although expenditures remained within the approved contract amount, service levels established a new baseline for annual legal support requirements.
In Fiscal Year 2023-24, personnel-related consultations continued at a high level and were supplemented by legal assistance associated with negotiating successor Memoranda of Understanding (MOUs) with the City's bargaining groups.
During Fiscal Year 2025-26, demand for Liebert Cassidy Whitmore's services has continued to increase due to employee discipline matters, workplace investigations, labor relations issues, and the commencement of successor labor negotiations with the City's bargaining units. The largest contributing factor to the increased demand for the current fiscal year is workplace investigations. The workplace issues brought forth this year have been resolved and the departmental personnel issues associated with the complaints have been resolved, albeit at an increased cost in investigative and legal services. Moving forward, it is anticipated that significantly fewer costs will be incurred for issues of this type due to the restructuring of departmental management.
While Cole Huber LLP is projected to remain within its adopted budget for traditional City Attorney services, the City incurred additional costs associated with third-party litigation services that were not accounted for in the current fiscal year budget. These specialized litigation matters have increased the overall demand for legal services beyond existing appropriations.
As a result, an additional appropriation of $367,000 is necessary to fund the increased legal service demands resulting from third-party subcontracts with Liebert Cassidy Whitmore and Cole Huber and to ensure the City can continue to receive timely and effective legal representation through the remainder of the fiscal year. The requested appropriation will support both the amendment to the existing agreement with Liebert Cassidy Whitmore and the payment of unbudgeted third-party litigation services.
DISCUSSION:
The requested action is necessary to ensure the City maintains adequate legal representation in personnel, labor, and litigation matters through the end of the fiscal year. The increase to the Liebert Cassidy Whitmore agreement reflects extraordinary personnel-related issues that arose during the year and the associated need for specialized subcontracted legal services. Likewise, while the City Attorney's contractual services have remained within budget, third-party litigation expenses exceeded the amounts originally appropriated and require additional funding authority.
17.N.
For the current fiscal year, the workplace and personnel issues brought forth were unique due to the fact that the complaints largely stemmed from the lack of oversight and management of an entire department. As the initial investigation commenced, the scope of the investigation would continually need to be expanded due to additional factors discovered during the course of the investigation. The issues have largely resolved as a result of the exit of key management personnel but the investigations are still being finalized due to the scope and nature of what was discovered during the course of the investigations.
Staff anticipates that the heightened personnel-related matters experienced during the current fiscal year are temporary and will subside moving into Fiscal Year 2026-27, returning to a more typical level of legal service demand. Additionally, the proposed Fiscal Year 2026-27 budget includes increased appropriations for legal services to better accommodate anticipated third-party litigation costs and reduce the likelihood of future mid-year budget adjustments.
Approval of the Eighth Amendment for Liebert Cassidy Whitmore would increase the annual not-toexceed amount from $225,000 to $325,000 for Fiscal Year 2025-26. The additional funding will ensure the City can continue to receive timely legal counsel and representation from Liebert Cassidy Whitmore in addressing ongoing personnel and labor relations matters throughout the remainder of the fiscal year. This increase will also require a supplemental appropriation of $367,000 to Fund 691 to cover the increased expenditures.
PREVIOUS COUNCIL ACTION:
On June 23, 2022, Council approved a one-time not-to-exceed amount of $100,000.
On August 9, 2022, Council approved a one-time not-to-exceed amount of $135,000 for FY 2021-22.
On January 30, 2024, Council approved a one-time not-to-exceed amount of $225,000 per fiscal year.
On July 9, 2024, Council approved a one-time not-to-exceed amount of $265,000 for FY 2023-24.
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.
FISCAL IMPACT:
A supplemental appropriation of $367,000 will need to be established to Fund 691 Legal Services to cover the additional expenditures. Current fund balance is $1,417,000 before the approval of these appropriations.
ALTERNATIVE(S):
17.N.
Council may either choose to not approve this amendment.
ATTACHMENT(S):
Attachment 1 - Resolution No. 2026-111 Approving the Eighth Amendment with Liebert, Cassidy, Whitmore
Attachment 2 - Eighth Amendment
17.N.
CITY OF HEMET RESOLUTION NO. 2026-111 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-111
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING THE EIGHTH
AMENDMENT TO THE SPECIAL SERVICES
AGREEMENT WITH LIEBERT CASSIDY WHITMORE FOR
CONTINUED REPRESENTATION IN LABOR AND
EMPLOYMENT-RELATED MATTERS, INCREASING THE
ANNUAL NOT-TO-EXCEED COMPENSATION AMOUNT
TO $325,000 PER CITY FISCAL YEAR, AUTHORIZING
THE CITY MANAGER TO EXECUTE THE EIGHTH
AMENDMENT, AND AUTHORIZING SUPPLEMENTAL
APPROPRIATIONS IN THE AMOUNT OF $367,000 IN
FUND 691 LEGAL SERVICES
WHEREAS, the City of Hemet, California (“City”) has retained Liebert Cassidy Whitmore (“LCW”) since 2019 to provide specialized legal services and representation in connection with labor, employment, personnel, and related matters; and WHEREAS, LCW has provided legal services to the City in connection with matters including, but not limited to, labor negotiations, employee discipline, employee terminations, administrative appeals, workplace investigations, personnel matters, and organizational restructuring; and
WHEREAS, the City and LCW are parties to that certain Special Services Agreement 2020-001, dated September 10, 2019, as amended from time to time (“Agreement”); and
WHEREAS, the City has experienced an increased demand for labor and employment-related legal services, including specialized personnel, workplace investigation, labor relations, and related representation services; and
17.N.
CITY OF HEMET RESOLUTION NO. 2026-111 2
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WHEREAS, the current annual not-to-exceed compensation amount under the Agreement is $225,000 per City fiscal year, except as otherwise provided by prior amendments for specified fiscal years; and
WHEREAS, City staff recommends approval of an Eighth Amendment to the Agreement to increase the annual not-to-exceed compensation amount from $225,000 to $325,000 per City fiscal year; and
WHEREAS, approval of the Eighth Amendment will allow the City to continue receiving timely and effective legal counsel and representation from LCW for ongoing labor, employment, personnel, and related matters; and
WHEREAS, in addition to the increased compensation authority for the LCW Agreement, the City has incurred and anticipates additional legal service costs, including third-party litigation and related legal services, that require a supplemental appropriation to Fund 691 Legal Services; and
WHEREAS, a supplemental appropriation in the amount of $367,000 in Fund 691 Legal Services is necessary to fund increased legal service demands and to ensure the City’s continued ability to obtain necessary legal representation and related services; and
WHEREAS, the City Council desires to approve the Eighth Amendment to the Agreement, authorize the City Manager to execute the Eighth Amendment, and authorize the Administrative Services Director to establish the necessary supplemental appropriations and related budget adjustments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
17.N.
CITY OF HEMET RESOLUTION NO. 2026-111 3
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SECTION 1. Recitals. The foregoing recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Approval of Eighth Amendment. The City Council hereby approves the Eighth Amendment to the Special Services Agreement 2020-001 with Liebert Cassidy Whitmore, substantially in the form attached hereto as Exhibit A and incorporated herein by this reference, increasing the annual not-to-exceed compensation amount under the Agreement to $325,000 per City fiscal year.
SECTION 3. Authority to Execute. The City Council hereby authorizes the City Manager to execute the Eighth Amendment on behalf of the City, subject to any minor, non-substantive revisions approved by the City Attorney, and to take such other actions as are reasonably necessary to implement the Eighth Amendment and this Resolution.
SECTION 4. Supplemental Appropriation. The City Council hereby authorizes the Administrative Services Director to establish supplemental appropriations in the amount of $367,000 in Fund 691 Legal Services, and to make all necessary budget adjustments, transfers, and accounting entries consistent with this Resolution.
SECTION 5. Effective Date. This Resolution shall take effect immediately upon its adoption.
///
///
17.N.
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PASSED, APPROVED AND ADOPTED this 23rd day of June,
2026.
___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk
17.N.
CITY OF HEMET RESOLUTION NO. 2026-111 5
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State of California )
County of Riverside )
City of Hemet )
I, Rosalia A. Butler, MMC, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 23rd day of June, 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Rosalia A. Butler, MMC, City Clerk
17.N.
1 | P a g e
EIGHTH AMENDMENT
SPECIAL SERVICES AGREEMENT 2020-001
BY AND BETWEEN
THE CITY OF HEMET,
A CALIFORNIA MUNICIPAL CORPORATION
AND
LIEBERT CASSIDY WHITMORE,
A PROFESSIONAL CORPORATION
DATED: APRIL 27, 2026
17.N.
2 | P a g e
EIGHTH AMENDMENT
SPECIAL SERVICES AGREEMENT
FOR EMPLOYMENT RELATIONS MATTERS
BETWEEN THE CITY OF HEMET AND LIEBERT CASSIDY WHITMORE
This Eighth Amendment to the Special Services Agreement for Legal Negotiator Services is made and entered into as of this 24th day of June, 2026, by and between the City of Hemet (“City”), a California municipal corporation and Liebert Cassidy Whitmore, a professional corporation (“Consultant”). City and Consultant are sometimes hereinafter referred to as “Party” and hereinafter collectively referred to as the “Parties.”
RECITALS
A. City and Consultant entered into an agreement entitled “Special Services” dated September 10, 2019 (“Agreement”) for the purpose of retaining services of Consultant to provide Legal Negotiator Services.
B. On May 1, 2020, the Parties executed a First Amendment to Special Services (“First Amendment”) that increased the annual Not to Exceed amount from Fifty Thousand Dollars ($50,000.00) to One Hundred Thousand Dollars ($100,000.00), this was approved by council on June 23, 2022.
C. On July 28, 2022, the Parties executed a Second Amendment to Special Services (“Second Amendment”) that increased the Not to Exceed amount for Fiscal Year 21/22, to One Hundred and Thirty-Five Thousand Dollars ($135,000.00), this was approved by council on August 9, 2022.
D. On January 31, 2024, the Parties executed a Third Amendment to Special Services (“Third Amendment”) that increased the Not to Exceed amount to Two Hundred and Twenty-Five Thousand Dollars ($225,000.00) per City Fiscal Year.
E. On July 1, 2024, the Fourth Amendment amended Schedule I – “Fees & Costs” to reflect the current rates.
F. On July 10, 2024, the Fifth Amendment amended the Special Services Agreement to increase the Not to Exceed amount to Two Hundred and Seventy-Six Thousand Two Dollars ($276,200.00) for fiscal year 2023/2024. Each subsequent year is Not to Exceed Two Hundred and Twenty-Five Thousand Dollars ($225,000.00) per fiscal year.
G. On June 23, 2025, the Parties entered into the Sixth Amendment to amend Schedule I – “Fees & Costs” to reflect current rates.
H. On April 27, 2026, the Seventh Amendment amended Section 3 of the Agreement to provide that such third-party investigators may, subject to the terms set forth herein, invoice the City directly for services performed.
I. Pursuant to Section 3 of the Agreement, the Parties desire to amend the Agreement to increase the not-to- exceed compensation amount.
17.N.
3 | P a g e
J. This Eighth Amendment amends Section 3 to provide that the Compensation shall not exceed Three Hundred and Twenty-Five Thousand Dollars ($325,000.00) per City fiscal year.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited herein, the Parties do hereby enter into this Amendment which modifies and amends the Agreement as follows:
1. AMENDMENT. The Agreement is hereby modified and amended as follows:
1.1 [Fees, Costs, Expenses]. Section 3 of the Agreement is hereby amended to increase the Not-to-Exceed amount to Three Hundred and Twenty-Five Thousand Dollars ($325,000.00) per City fiscal year.
2. REMAINDER UNCHANGED. Except as specifically modified and amended in this Amendment, the Agreement remains in full force and effect and binding upon the Parties.
3. INTEGRATION. This Amendment consists of pages 1 through 5, inclusive, which constitute the entire understanding and agreement of the Parties and supersedes all negotiations or previous agreements, including written or verbal communications between the Parties with respect to all or any part of the transaction discussed in this Amendment.
4. SEVERABILITY. If any portion of this Amendment is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
5. EFFECTIVE DATE. This Amendment shall not become effective until the date it has been executed by the appropriate authorities of the City and Consultant.
6. APPLICABLE LAW. The laws of the State of California shall govern the interpretation and enforcement of this Amendment.
7. REFERENCES. All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this Amendment. [SIGNATURE PAGE FOLLOWS]
17.N.
4 | P a g e
IN WITNESS WHEREOF, the Parties hereto have executed this Eighth Amendment to the Agreement on the date and year first written above.
CITY OF HEMET
___________________________
Noah Rau
Interim City Manager
ATTEST:
CITY CLERK
By: ___________________________
APPROVED AS TO FORM:
CITY ATTORNEY
By: ____________________________
CONSULTANT
By:
Its:
17.N.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 23 2026
Department: Administration
Submitted by: Noah Rau, Interim City Manager
Elodie Klug, Deputy City Clerk;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:
Consideration of City Council Outside Boards, Committees, Commissions, and Ad-Hoc Committees RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Review the existing, discuss potential adjustments, and provide direction regarding the appointments of the City of Hemet City Council Members to existing outside boards, committees, commissions and ad-hoc committees.
BACKGROUND:
During the January 13, 2026, the City Council made various appointments to existing boards, committees, and commissions and directed the City Clerk to update the 2026 Outside Boards, Committees, and Commissions List.
ANALYSIS:
The City of Hemet Council Protocols for Council Members and Appointed Officials indicate that the Mayor, as the presiding officer of the City Council, has the authority to appoint Council Members as representatives to Standing, Ad-Hoc, and Regional Organization committees such as the Riverside Transit Agency, WRCOG, etc.
The vacancy of a liaison or alternate to the liaison could hinder effective communication between committees, regional organizations, and the City Council as the absence of an appointee may impact the City's ability to participate.
At the June 9, 2026, City Council meeting, the Mayor announced a revision to the City Council committee assignments, whereby Council Member Lodge and Mayor Krupa exchanged assignments on the Hemet Stock Farm Development Ad Hoc Committee and the Downtown Theater Ad Hoc Committee. The attached committee assignment list has been updated to reflect this change.
18.A.
DISCUSSION:
Annually, the City of Hemet City Council conducts its reorganization and appoints Council Members to serve as representatives and liaisons to various outside Boards, Commissions, and Committees.
City Council Protocols encourage the Mayor to consider the best interests of the City, promote an equitable distribution of assignments among Council Members, and take into account any specific knowledge or interests expressed by Council Members.
PREVIOUS COUNCIL ACTION:
Appointments by the Mayor to positions with other governmental entities is governed by Section 7.1 of the City Council Protocols and have occurred annually or as more often as is reasonably necessary.
STRATEGIC PLAN INTEGRATION:
GOAL THREE: 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.
Objective 2: Increase transparency for the public.
GOAL FOUR: PARTNERSHIP & COLLABORATION
To pursue partnerships that will increase the opportunities available to the community, including our businesses, unemployed, and youth populations.
Objective 2: Develop concepts and programs to enhance the quality of life services.
FISCAL IMPACT:
None.
ALTERNATIVE(S):
Provide alternative direction to the City Manager.
ATTACHMENT(S):
Attachment No. 1 - 2026 OUTSIDE COUNCIL COMMITTEE APPOINTMENT
18.A.
Updated January 13, 2026
COUNCIL COMMITTEES AND LIAISONS TO OUTSIDE ORGANIZATIONS
COUNCIL STANDING
COMMITTEES
ASSIGNED
DEPT.
MEETING DATES/TIMES 2026 MEMBER UPDATE
Hemet Housing Authority Community
Development
As Needed Lodge/Krupa
Investment Oversight Committee Finance 3
rd Monday/1 per quarter Peterson/Howard-Clark
LIAISON TO CITY
BOARDS/COMMISSIONS
ASSIGNED
DEPT.
MEETING DATES/TIMES 2026 MEMBER UPDATE
Hemet Public Library Board of
Trustees
Library 3
rd Friday/ 10:00 a.m. Krupa
Planning Commission Community
Development
1 st & 3rd
Tuesdays/6:00 p.m.
Males/Howard-Clark
SPECIAL AND AD HOC
COMMITTEES
ASSIGNED
DEPT.
MEETING DATES/TIMES 2026 MEMBER UPDATE
Clean Up/Graffiti Ad Hoc
Committee
As Needed Lodge/Males
Homeless Outreach Ad Hoc
Committee
As Needed Males/Peterson
Business Outreach Ad Hoc
Committee
As Needed Males/Peterson
CDBG Ad Hoc Committee As Needed Howard-Clark/Males
Cal Trans Liaison Ad Hoc
Committee
As Needed Peterson/Krupa
Veterans Memorial Ad Hoc As Needed Peterson/Males
Youth Council Ad Hoc As Needed Lodge/Howard-Clark
Arts and Cultural Ad Hoc As Needed Krupa/Peterson
Downtown Theatre Ad Hoc
Committee
As Needed KrupaLodge/Howard-Clark
Hemet Stock Farm Development
Committee
As Needed Peterson/LodgeKrupa
LIAISON TO OUTSIDE
ORGANIZATION
ASSIGNED
DEPT.
MEETING DATES/TIMES 2026 MEMBER UPDATE
Riverside County Airport Land
Use Commission*
2 nd Thursday/9:30 a.m./Riverside Krupa
Community Action Partnership 3
rd Thursday/5:30 p.m./ Riverside Howard-Clark
League of California Cities 2
nd Monday/6:00 p.m. All Council Members
Riverside County Transportation
Commission
2 nd Weds/9:00 a.m./Riverside Krupa/Males
Riverside County Habitat
Conservation Agency (RCHCA)*
Quarterly 3rd Thursday/11:30 a.m.
/Riverside
Peterson/Howard-Clark
Riverside Transit Agency* 4
th Thurs/ 2:00 p.m./
Riverside/ (Nov & Dec - 3rd Thurs)
Krupa/Males
Western Riverside County
Conservation Authority (RCA)*
1 st Monday/12:30
p.m. Riverside
Howard-Clark/Krupa
Ramona Bowl Board of Directors As Needed Peterson
Hemet San Jacinto Water
Master Board*
Attorney/
Public Works
Quarterly/ 4th Monday of February,
May, August, and November at 4:00
p.m.
Krupa/Howard-Clark
Western Riverside Council of
Governments (WRCOG)*
First Monday of the month at 2:00
p.m.
Howard-Clark/Males
League of California Cities
Transportation, Communications,
and Public Works (TCPW) Policy
Committee
As Needed Krupa
Regional Council District 3
Committee: SCAG
(Elected)
As Needed Krupa
SCAG Transportation (Appointed
by WRCOG)
By Appointment
RCTC Committee: Mobile Source
Air Pollution Reduction Review
Committee
As Needed Krupa
*Denotes stipend received for-- attendance
18.A.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 23 2026
Department: Administration
Submitted by: Noah Rau, Interim City Manager
Benigno Sandoval, Economic Development Director;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:
Approval of Grant Funding Recommendations for the City of Hemet Kitchen Program RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Approve the City of Hemet Grant Funding Recommendations for the City of Hemet Kitchen Program BACKGROUND:
The Hemet Kitchen Grant program is a cornerstone of the City’s commitment to bolstering the local culinary economy. By providing financial support for high-quality equipment and infrastructure, this initiative helps local restaurateurs increase capacity, improve food safety, and modernize their operations to better serve the community.
The program began as the "Downtown Kitchen Grant," initially focused on revitalizing the culinary landscape within the city’s downtown corridor and as an initiative of the Hemet RISES Economic Strategy. Following a great response from local business owners, the City Council recognized the broader potential of the initiative.
In a move to support economic growth across all commercial areas, the Council voted to expand the scope of the grant. The program was transitioned from a downtown-specific initiative to a citywide grant, ensuring that restaurants and food-service establishments throughout the entirety of Hemet could benefit from the investment.
The City Council has consistently demonstrated its support for the culinary sector through incremental funding. The total allocation for the program is described in the table below.
Approval Date Fiscal Year Funding Amount
Initial Approval 2024-25 $300,000
June 10, 2025 2025-26 $200,000
18.B.
January 13, 2026 Additional FY 2025-26
Appropriation $500,000
Total $1,000,000
To create a collaborative investment in local infrastructure, the grant program requires that all applicants provide a minimum 20% match for their proposed projects. This requirement ensures that grant recipients remain actively invested in the success and sustainability of their business upgrades.
Grant funds are designed to support the acquisition and installation of professional-grade equipment.
Examples of eligible items include:
Cooking & Prep: Commercial-grade range/oven, food processor, professional-grade knives, and cutting board.
Storage & Cooling: High-volume refrigerator, walk-in freezer, ice machine. Sanitation & Safety: Commercial dishwasher, three-compartment sink, and grease trap installation.
Ventilation: Hood system and ventilation.
The City understands that unique kitchen layouts and operational needs may require specialized equipment not explicitly listed above. Consequently, the City Manager or the Economic Development Director holds the authority to review and approve other kitchen-related items on a case-by-case basis.
ANALYSIS:
The Hemet Kitchen Grant has utilized a data-driven approach to economic development. By combining a time-sensitive application window with advanced location intelligence, the City executed a targeted strategy to retain local dining dollars and elevate our business community.
1. Strategic Outreach and the 30-Day Window
To ensure the program reached the widest possible audience of qualified restaurateurs, the City opened the application window for 30 days. This duration was selected to create a sense of urgency, encouraging prompt action from business owners, while still providing ample time for applicants to gather the necessary documentation. This strategic pacing resulted in a robust pipeline of applications, ensuring the City could select projects with the highest potential for community impact.
2. Leveraging Data to Capture "Retail Leakage"
A primary goal of this initiative is to mitigate "retail leakage"—the phenomenon where residents leave Hemet to dine in neighboring communities, taking their tax dollars with them. To address this, the City utilized Placer.ai to conduct a sophisticated market analysis.
By analyzing mobile location data, the City identified the "Top 100" businesses that Hemet residents frequent most often outside city limits. By identifying these specific competitors—such as Olive Garden, BJ’s, Round1, and Texas Roadhouse—the City gained clear insight into the type of highvolume, high-quality dining experiences our residents are seeking. The grant program was then marketed directly to local operators, encouraging them to upgrade their kitchens to better compete with these external brands, effectively aiming to bring that consumer spending back into Hemet.
3. Rigorous Review: The Business Ad-Hoc Committee
18.B.
To maintain transparency and ensure that funds are directed toward the most viable and impactful projects, the City utilized a structured governance process centered on the Business Ad-Hoc Committee.
Initial Review: Applications underwent an initial screening for eligibility and compliance. Committee Deliberation: The Business Ad-Hoc Committee conducted a thorough review of all qualifying applications. Their role was critical in vetting the business plans, assessing the potential economic impact, and ensuring that the requested upgrades aligned with the City’s broader economic development goals.
Recommendation to Council: Following their review, the business Ad-Hoc Committee formulated formal recommendations for the full City Council.
DISCUSSION:
The City of Hemet City Council Approved the Following Kitchen Grants on April 28, 2026:
Rendezvous Coffee $ 100,000
Share Tea $ 100,000
Rebel Harp Irish Pub $ 200,000
Sports Restaurant $ 150,000
E + J Steelhouse $ 200,000
$ Total 750,000
On April 28, 2026, it was recommended by City Council to have staff go back and review two applications further (Boy's Burgers and Carlton's Steakhouse) for allowable items and funding request amounts. After the Economic Development Director met with the Business Council Ad-Hoc Committee, the following businesses were recommended for funding to the full City Council:
Recommendations:
Carlton's Steakhouse - $150,000
Boy's Burgers - $37,800
If approved, the remaining balance for the Hemet Kitchen Grant would be: $62,200.
PREVIOUS COUNCIL ACTION:
Approved 5 Kitchen Grants on April 28, 2026
STRATEGIC PLAN INTEGRATION:
GOAL ONE: QUALITY OF LIFE:
To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.
Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.
Objective 2: Explore and implement homelessness solutions for the City of Hemet.
Objective 3: Increase Public Safety visibility and response.
18.B.
GOAL TWO: ECONOMIC OPPORTUNITY
To ensure that Hemet is a hub, with access to quality jobs, shopping options, and a varied and sustained tax base.
Objective 1: Develop business practices that welcome new development by streamlining processes.
Objective 2: Provide resources for new businesses to enhance the customer service experience.
GOAL FOUR: PARTNERSHIP & COLLABORATION
To pursue partnerships that will increase the opportunities available to the community, including our businesses, unemployed, and youth populations.
Objective 1: Develop concepts and programs to increase opportunities for youth recreation.
Objective 2: Develop concepts and programs to enhance the quality of life services.
Objective 3: Develop programs to offer support to the community's businesses 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:
Funding for the Kitchen Grant Program has already been appropriated in Fiscal Years 2024-25 and 2025-26. Approval of the Ad Hoc Committee's funding recommendations will utilize an additional $187,800 of the $1,000,000 previously appropriated, leaving $62,200 remaining.
ALTERNATIVE(S):
1. Adjust Ad Hoc Committee recommendations.
2. Reopen the grant application for an additional period of time.
3. Receive additional information from applicants.
4. Provide alternate direction to the City Manager.
ATTACHMENT(S):
1) Hemet - City Kitchen Grant Program Aggrement
2) Boy's Burgers New Budget Application
3) Carltons Steakhouse LLC Kitchen Grant
18.B.
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CITY OF HEMET KITCHEN GRANT PROGRAM
GRANT AGREEMENT
CITY OF HEMET
KITCHEN GRANT PROGRAM
THIS GRANT AGREEMENT is hereby entered into this day of (“Effective Date”), by and between the City of Hemet, a California municipal corporation (hereinafter referred to as “City”) and the following designated OWNER and/or LESSEE (collectively as “Grantee(s)”):
Owner Name:
Lessee’s Name:
Name of Business
(“Business”):
Address of Property to be
Improved:
RECITALS
A. As a way to revitalize the downtown of the City of Hemet and foster a thriving culinary scene, the City has created the Kitchen Grant Program (“Program”).
B. The Program is administered by the City with the advice of the City Council, is funded by the City General Fund for the purpose of stimulating economic growth and culinary business revitalization efforts in the Downtown Specific Plan area (“Program Area”). The amount of funds available each year is not guaranteed and are distributed on a first-come first-served basis.
C. Grantee(s) owns or leases property at the above-listed address in the Program Area, more particularly described in Exhibit “A,” attached hereto and incorporated herein (“Property”), and has submitted a Program application for certain improvements to the Property. In the event a Grantee(s) leases the Property, the legal Owner has joined as a signatory to the Regulatory Agreement and this Grant Agreement to evidence its irrevocable consent to the Project and to be bound by the terms and conditions set forth herein. For purposes of this Agreement, the final scope of work approved by the City for said improvements shall be referred to as the “Project.” D. Under the Program, the City will reimburse up to a maximum of Three Hundred Thousand Dollars ($300,000) to eligible property owners/lessees for the costs associated with building a restaurant kitchen, provided that the owners/lessees demonstrate a Twenty Percent (20%) matching contribution towards the Project prior to receiving any Grant Funds, are responsible for ongoing maintenance, keep their business open to the public, keep their property free of building code violations, and, in the case of property owners, keep their property free tax liens for a period of two (2) years after the Completion Date as defined herein.
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CITY OF HEMET KITCHEN GRANT PROGRAM
E. The Parties intend this Agreement to set forth Grantee(s)’ obligations with respect to the Project, including all terms and conditions of this Agreement and all Program guidelines established by the City, as may be amended from time to time (“Program Guidelines”).
NOW THEREFORE, in consideration of the mutual covenants and agreements obtained herein, the City and the Grantee(s) do hereby agree as follows:
SECTION 1. GRANT FUNDS.
a. Amount of Funding. Grantee(s) shall be reimbursed for Eligible Expenses, as defined below, up to a maximum amount of Three Hundred Thousand Dollars ($300,000) for building, improving, or expanding a restaurant kitchen. The total reimbursement amount per this Agreement shall not exceed the maximum amount of Three Hundred Thousand Dollars ($300,000) (hereafter referred to as “Grant Funds”). Grantee(s) acknowledges that payment to Grantee(s) is contingent upon funding allocation, and in the event of funding reduction, including elimination, the City may reduce the Grant Funds as a whole or in part. Any such change shall be reflected by written amendment to this Agreement or by notice provided pursuant to Section 7(k) of this Agreement, if applicable. All Grant Fund disbursements are subject to repayment if a Certificate of Occupancy is not obtained within thirty (30) days of the Project’s completion. The Grantee(s)' obligation to repay shall be secured by the Regulatory Agreement (attached under Exhibit "B" and recorded against the Property).
b. Eligible Expenses. Grant Funds shall only be used to reimburse the costs for labor and materials directly related to the Eligible Improvements (“Eligible Expenses”). “Eligible Improvements” shall mean restaurant kitchen development and/or improvement, as defined in the Program Guidelines including:
(i) Equipment:
1. Commercial-grade ranges and ovens
2. High-volume refrigerators and walk-in freezers
3. Commercial dishwashers
4. Kitchen hood and ventilation systems
5. Three-compartment sinks
6. Commercial-grade food processors
7. Commercial ice machines
8. Code-compliant grease traps
18.B.
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CITY OF HEMET KITCHEN GRANT PROGRAM
(ii) The conditions apply towards the Eligible Improvements to qualify as an Eligible Expense:
1. The Project must be completed within eighteen (18) months of building permit issuance.
2. The City will reimburse the Eligible Expenses through one of the following methods:
(a) Standard Reimbursement: After the City deems the project completed and issues a Certificate of Occupancy, the City shall reimburse Grantee(s) within thirty (30) days of receiving complete documentation including detailed invoices and proof of
payment(s).
(b) Milestone Reimbursement: At the City Manager’s discretion, reimbursement may be provided upon completion of specific inspection milestones, not to exceed two reimbursements and be established in writing between the City and Grantee(s) prior to commencement of work. Such milestones shall be reasonable and consistent with standard construction practices.
If an extension beyond the required completion date is anticipated, prior City Manager’s approval is required to extend the performance period.
3. Grant Funds must be used for the Project’s kitchen improvements, rather than simple routine maintenance.
4. Improvements must be consistent with the City’s Downtown Specific Plan and the City’s General Plan 2030.
5. Building and improvements must adhere to all applicable building codes, ordinances, and development/design standards for the City.
6. Additional Eligible Improvements. The City Manager or Economic Development Director is hereby authorized to approve, in writing, items not expressly enumerated above as Eligible Improvements, provided that such items are:
(i) directly related to commercial kitchen operations;
(ii) consistent with the purposes of the Program, and
(iii) approved prior to purchase or installation.
Any such approval shall be documented in writing and incorporated into the applicable Grant Agreement by written amendment.
c. Prevailing Wage. All Project improvements are “public work,” as that term is used in Section 1720 of the California Labor Code. Grantee(s) and all contractors and subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday
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CITY OF HEMET KITCHEN GRANT PROGRAM
wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code. The Director’s determination is available on-line at www.dir.ca.gov/dlsr/DPreWageDetermination.htm and is referred to and made a part hereof. The wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein.
SECTION 2. TERM.
a. Grant Agreement. The term of this Agreement shall be from the Effective Date and shall terminate on the Completion Date, unless terminated earlier as provided herein. For purposes of this Agreement, "Completion Date" shall mean the date the City issues a Certificate of Occupancy for the Project. Notwithstanding the foregoing, the terms, covenants, conditions, and restrictions set forth in Section 6 & the general provisions in Section 7 shall survive the termination and expiration of this Agreement.
b. Regulatory Agreement. As consideration for the Grant Funds, Grantee(s) agrees to be bound by the covenants, conditions, and restrictions set forth in the Regulatory Agreement, attached hereto as Exhibit “B,” which shall be recorded in the Official Records of the County of Riverside as a condition precedent to the City’s disbursement of the Grant Funds.
SECTION 3. PROJECT TIMELINE.
a. Design Approval. After the City has approved the final scope of work for the Project, Grantee(s) shall submit to the City the design plans for the Project. Grantee(s) shall not undertake any improvement until the design for the Project has been submitted to and approved by the City.
b. Notice to Proceed. If the City approves of the design of the Project, the City shall issue to the Grantee(s) a Notice to Proceed. Expenses incurred prior to the issuance of the Notice to Proceed shall not be reimbursed.
c. Time for Completion. Following the City’s issuance of the Notice to Proceed, the Grantee(s) shall contract for the work, commence construction, and complete the Project within eighteen (18) months of building permit issuance.
d. Extensions. In the event the Grantee(s) anticipates that the Project will not be completed within eighteen (18) months of building permit issuance, the Grantee(s) shall, no less than thirty (30) days prior to the Completion Date, submit a written request to the City Manager for an extension detailing the circumstances giving rise to the delay and justification for the extension. It is within the City Manager’s sole and absolute discretion to grant such extension.
Notwithstanding the foregoing, the City Manager reserves the right to provide any length of extension as may be necessary and reasonable for the completion of the Project. e. Documentation. Upon completion of the work, the Grantee(s) shall submit to the City proof of all incurred expenses, including payments made to contractors and subcontractors, final lien waivers from all contractors and subcontractors, and an executed Regulatory Agreement signed by both Owner and Lessee (where applicable) as referenced in Section 2.
18.B.
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CITY OF HEMET KITCHEN GRANT PROGRAM
f. Completion Date and Final Inspection. Upon receipt of the documentation set forth in Section 3(e), the City shall perform a final inspection to verify that construction is completed per approved plans and specifications. If approved and the requirement for a Certificate of Occupancy is satisfied, the City shall issue the Certificate of Occupancy to the Grantee(s) certifying that the Project has been completed, which formally authorizes the space to be occupied and open for business operations. The Certificate of Occupancy will not be issued unless:
(1) All construction work meets applicable building codes and safety requirements;
(2) The business owner has obtained all required permits, including a permit for permanent signage (temporary banners do not satisfy this requirement); and
(3) All other municipal requirements for business operation have been satisfied. g. Progress Payments and Final Reimbursement. At the City Manager's sole discretion, progress payments may be authorized based on successful completion of specific inspection milestones. Such milestone agreement shall be established after the Grantee(s) submits design plans for the Project and proposed milestone schedule, and must be approved in writing by both the City Manager and Grantee(s).
(1) Progress Payment Reimbursement Plan Requirements: Any progress payments shall:
(i) Not exceed 80% of total eligible expenses incurred to date; (ii) Require submission of paid invoices and lien waivers for completed work; (iii) Be subject to successful City inspection of the completed milestone; and (iv) Be contingent upon the Project's continued progress toward obtaining a Certificate of Occupancy.
(2) Final Payment: Regardless of reimbursement method selected, the final payment or, in the case of milestone reimbursement, the remaining Grant Funds (minimum 20% of total grant amount) shall be disbursed within thirty (30) days only upon:
(i) Issuance of the Certificate of Occupancy;
(ii) Submission of all final documentation including invoices and final lien waivers; and
(iii) Compliance with all terms of this Agreement.
h. Repayment Obligation: If (i) the Project remains incomplete and fails to obtain a Certificate of Occupancy within the timeframe specified in this Agreement (including any approved extensions) Grantee(s) or responsible party shall reimburse the City for all progress payments made, or (ii) the business ceases operations within two (2) years after the Completion
18.B.
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CITY OF HEMET KITCHEN GRANT PROGRAM
Date, Grantee(s) or responsible party shall reimburse the City and the repayment amount shall be prorated based on the number of months remaining in the two (2) year period. All repayment obligations shall be secured by the recorded Regulatory Agreement.
SECTION 4. MONITORING.
The City has a right to periodically review the progress of work for the Project. Such inspections shall not replace any required permit inspection by Building Inspectors. All work that is not in conformance with the approved plans, design drawings, and specifications shall be immediately remedied by the Grantee(s). Grant Funds shall not be used to reimburse costs associated with correcting, replacing, or remedying any deficient or improper work, and such corrections shall be completed at the sole cost and expense of the responsible party.
SECTION 5. TERMINATION BY CITY.
The City may terminate this Agreement, immediately, if the Owner or Lessee (where applicable) fails to comply with their respective obligations as set forth in this Agreement, or if any party submits documentation that is incomplete, incorrect, or falsified. Notice of termination shall be given by the City to the Owner and Lessee (if applicable) by certified mail to the address listed above. Upon the date such notice is mailed, this Agreement shall terminate and the financial obligations on the part of the City shall cease and become null and void:
1. Non-emergency Defaults: the City shall provide both Owner and Lessee with written notice of default and fifteen (15) business days opportunity to cure, commencing upon receipt of notice, during which time the non-defaulting party shall have the right (but not obligation) to cure the other party's default to prevent termination of the entire Agreement. The notice shall specify the nature of the default and required cure actions.
2. If the Lessee cures an Owner’s default, the Lessee may seek reimbursement from the Owner and/or offset such costs against rent payments, subject to applicable laws.
3. If the Owner cures a Lessee’s default, the Owner shall have the right to offset such costs against any rent, security deposits, or other amounts owed to the Lessee. In the event of Lessee default or early lease termination, prior to completing the two (2) year operational period from the Completion Date, (i) the grant-funded improvements shall remain with and benefit the Property with no grant benefits transferred to Lessee and (ii) the Lessee shall reimburse the City for any unamortized Grant Funds over the two (2) year period from the Completion Date, calculated proportionally based on the time remaining in the compliance period.
4. Either party may cure the other party's default to prevent termination of this Agreement and may seek reimbursement for cure costs from the defaulting party and exercise any right available under the Grantee(s)’ lease agreement, subject to the applicable laws.
SECTION 6. GRANT CONDITIONS.
18.B.
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CITY OF HEMET KITCHEN GRANT PROGRAM
a. Responsibilities of Owner(s) and Lessee(s). Where the Grantee(s) includes both an Owner and Lessee:
1. The Owner shall be solely responsible for: (i) keeping the Property free of tax liens; (ii) payment of all property taxes and assessments; and (iii) compliance with any ownership-related obligations under this Agreement.
2. The Lessee shall be responsible for: (i) business operations; (ii) maintenance of grant-funded improvements; and (iii) compliance with building, health, and safety codes related to the business operations.
3. Both Owner and Lessee shall be jointly responsible for ensuring the Property remains free of building code violations related to the Project improvements.
b. Owner’s Duty to Cooperate. The Owner acknowledges that the Lessee's ability to comply with this Agreement depends substantially on the Owner's cooperation and the continued viability of the Property for restaurant operations. Accordingly, the Owner agrees not to take any action that would prevent or hinder the Lessee from fulfilling their obligations under this Agreement, including but not limited to interfering with business operations, failing to maintain essential building systems at the Owner’s sole cost and expense, or creating conditions that would violate health or safety codes.
c. Lessee’s Duty to Cooperate. The Lessee agrees not to take any action that would damage the Property, violate building or safety codes in a manner that could result in liens or violations against the Property, or operate the business in a way that would jeopardize the Owner's property interests or violate the terms of this Agreement. The Lessee shall ensure all grant-funded improvements are properly maintained at the Lessee’s sole cost and expense, and shall not permit any liens related to business operations to be placed against the Property. d. Maintenance. From the Completion Date unless otherwise agreed upon by the parties in writing, the Grantee(s) agree to maintain and repair all Grant Funded infrastructure, equipment, and any improvements in good operating condition consistent with California Health and Safety Code standards and industry best practices for commercial kitchen operations at the Grantee(s)’ sole cost and expense.
e. Business Operations. For a period of two (2) years from the Completion Date unless otherwise agreed upon by the parties in writing, the Lessee agrees to keep the Business open as a fully-fixtured, fully-stocked, fully-staffed, and continuously operating business open to the public at the Property during regular business days and hours. f. Code Compliance. For a period of two (2) years from the Completion Date unless otherwise agreed upon by the parties in writing:
1. The Owner agrees to ensure the Property complies with all structural and property-related building codes and to keep the Property clear of such violations at the Owner’s sole cost and expense.
2. The Lessee agrees to comply with all health, safety, and operational codes related to business operations at Lessee’s sole cost and expense.
3. Both parties shall be jointly responsible for ensuring compliance with
18.B.
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CITY OF HEMET KITCHEN GRANT PROGRAM
building codes specifically related to the grant-funded kitchen improvements and comply with all building, health, and safety standards.
Should any code violations occur related to any improvements made using Grant Funds and remain uncured beyond the cure period specified in a code enforcement citation, after reasonable notice and opportunity to cure, the responsible party (Owner and/or Lessee, as determined by their respective obligations under this Agreement) may be required to reimburse the City any unamortized Grant Funds over the two (2) year period from the Completion Date, calculated proportionally based on the time remaining in the compliance period.
g. Tax Liens. For a period of two (2) years from the Completion Date unless otherwise agreed upon by the parties in writing, the Owner agrees to keep the Property free of tax liens. h. Insurance. Without limiting or diminishing the Grantee(s)’ obligation to indemnify or hold the City harmless, the Owner at its sole cost and expense shall maintain property insurance and flood insurance. The Lessee at its sole cost and expense shall maintain business liability insurance and any insurance required for business operations. Both parties shall ensure their respective insurance policies name the City as an additional insured as it relates to the grant-funded improvements.
i. Non-Liability of Officials, Employees and Agents. No elected official, officer, employee, or agent of the City shall be personally liable to the Grantee(s) for any obligation created under the terms of this Agreement, unless such an obligation is made express and by written instrument.
j. Indemnity. Notwithstanding the insurance coverage required herein, the Grantee(s), and its successors, assigns, and heirs, shall indemnify, defend, and hold the City, its elected officials, officers, employees, and agents (“Indemnitees”) harmless from any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including attorneys’ fees) which the City may incur as a result of: (a) the City providing Grant Funds to the Grantee(s); (b) the Grantee(s)’ performance of or failure to perform any obligations as and when required by this Agreement; (c) a failure of any of the Grantee(s)’ representations or warranties to be true and complete in any material respect; (d) any act or omission by the Grantee(s) or any of Grantee(s)’ contractors, subcontractors, architects, engineers, or suppliers with respect to the Project or the Property; (e) failure of the Grantee(s), the Grantee(s)’ contractors, or subcontractors to comply with the covenants, conditions, and restrictions contained in this Agreement or the Regulatory Agreement or to comply with all other laws, rules, regulations, and restrictions related to the use of Grant Funds, and/or (f) any claim related to the Property, Project, or Grant Funds, except if the loss is caused by the sole negligence or willful misconduct of the City. The responsible party shall pay within thirty (30) days of the City’s written demand any amounts owing under this indemnity. The duty of the Grantee(s) to indemnify includes the duty to defend the City in any court action, administrative action, or other proceeding brought by any third party arising from the Project, the Agreement, the Regulatory Agreement, or the Property.
SECTION 7. GENERAL PROVISIONS.
a. Political Activity. None of the funds, materials, property, or services contributed
18.B.
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CITY OF HEMET KITCHEN GRANT PROGRAM
by the City to the Grantee(s) under this Agreement shall be used for any partisan political activity or the election or defeat of any candidate for public office. b. Discrimination. The Grantee(s) covenants and agrees for itself and its successors and assigns, that all persons employed by or applying for employment by it, and all subcontractors, vendors, and volunteers are and will be treated equally and the Grantee(s) shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, genetic information, gender, gender identity, gender expression, or sexual orientation, or military and veteran status, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, the Grantee(s) agrees to conform to the requirements of the Americans with Disabilities Act.
c. Compliance with Laws. The Grantee(s) shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect the Grantee(s), the Property, or in any way affect the completion of the Project by the Grantee(s). The Grantee(s) shall at all times observe and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations.
The City shall not be responsible for informing the Grantee(s) of such laws or changes to such laws.
d. Joint and Several Liability Limitations. Where both an Owner and Lessee are parties to this Agreement, their liability shall be limited to their respective areas of responsibility as set forth herein, except where otherwise required by California law. Neither party shall be liable for the other party's specific obligations, except where joint responsibility is explicitly stated in this Agreement or mandated by applicable law. e. Governing Law and Venue. This Agreement shall be governed and construed in accordance with the laws of the State of California. The parties agree that any action or proceeding arising out of or relating to this Agreement shall be tried and litigated only in the state and federal courts located in the County of Riverside, California, or the United States District Court for the Central District of California, and each party hereby consents to the jurisdiction of such courts and waives any objection to venue therein.
f. Attorneys’ Fees and Costs. In the event any legal or administrative action is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys’ fees and costs incurred in such action. g. Relationship of Parties. The relationship of the Grantee(s) with the City for this Project shall not be construed as a joint venture, equity venture, partnership, or any other relationship. City neither undertakes nor assumes any responsibility or duty to the Grantee(s) (except as provided for herein) or any third party with respect to the Project or the Property.
Except as City may specify in writing, Grantee(s) shall have no authority to act as an agent of the City or to bind the City to any obligation.
h. Waiver. Any waiver by the City of an obligation in this Agreement must be in
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CITY OF HEMET KITCHEN GRANT PROGRAM
writing. No waiver shall be implied from any delay or failure by the City to take action on any breach or default of the Grantee(s) or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to the Grantee(s) to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by the Grantee(s) shall not be construed to be a consent to any other act or omission or to waive the requirement for the City’s written consent to future waivers.
i. Integration. This Agreement, including exhibits, contain the entire agreement of the parties and supersede any prior negotiations.
j. Other Agreements. Grantee(s) represents that the Grantee(s) has not entered into any agreements that are inconsistent with the terms of this Agreement. Grantee(s) shall not enter into any agreements that are inconsistent with terms of this Agreement without an express waiver by the City in writing.
k. Amendments and Modification. Any amendments or modifications to this Agreement must be in writing and shall be effective only if executed by the Grantee(s) and the City.
l. Order of Priority. In the event of any conflict or inconsistency between the terms of this Grant Agreement, the Regulatory Agreement, and the Program Guidelines, the following order of priority shall govern the interpretation and enforcement of the parties' obligations: (i) first, this Grant Agreement; (ii) second, the Regulatory Agreement; and (iii) third, the Program Guidelines.
m. Severability. Every provision of this Agreement is intended to be severable. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.
n. Counterparts. This Agreement and all other agreements executed pursuant to this Agreement may be executed in counterpart originals, each of which shall be deemed an original, but all of which, together shall constitute one and the same instrument. o. Opportunity to Inquire. The Grantee(s) represents and warrants to the City that it has: (a) received and thoroughly reviewed this Agreement and all documents incorporated herein; (b) been given the opportunity to ask the City questions regarding the meaning of any provision; and (c) been afforded the opportunity to consult with independent legal counsel of its own choosing prior to execution.
p. No Ambiguity. The Grantee(s) acknowledges that it has read and understands this Agreement and voluntarily accepts all terms and conditions. The Grantee(s) has had the opportunity to review this Agreement with counsel of its choice and understands the nature of its obligations. The Grantee hereby waives any future right to claim that any provision of this Agreement is ambiguous as a basis to avoid its performance hereunder.
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J. Exhibits. The following exhibits attached hereto are incorporated herein to this Agreement by this reference:
Exhibit “A” – Property
Exhibit “B” – Regulatory Agreement
Exhibit “C” – Program Guidelines
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the date first appearing above.
PROPERTY OWNER(S) CITY OF HEMET
Name Mark Prestwich, City Manager
Signature
Name
Signature
LESSEE/BUSINESS OWNER Approved as to Form
Name Steven P. Graham, City Attorney
Signature
18.B.
4921-6384-5994.1
EXHIBIT “A”
PROPERTY DESCRIPTION
(Attached)
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REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
EXHIBIT “B”
REGULATORY AGREEMENT
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE
REGULATORY AGREEMENT
(DOWNTOWN KITCHEN GRANT PROGRAM)
THIS REGULATORY AGREEMENT (“Regulatory Agreement”) is made and entered into this day of _ 202 , by _____ (“Owner”) and _____ (“Lessee”), collectively referred to as “GRANTEE(S),” and THE CITY OF HEMET, a California municipal corporation (“City”) with reference to the following facts:
RECITALS
Exempt from Recording Fees
Pursuant to Government Code § 6103
When Recorded Mail to:
City of Hemet
Economic Development Department
445 E Florida Ave
Hemet, CA 92543
Address:
APN:
_
18.B.
REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
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REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
A. On September__, 2025, the City and Grantee(s) entered into that certain Kitchen Grant Program Agreement (“Grant Agreement”) for the City’s Downtown Kitchen Grant Program, pursuant to the City’s Downtown Kitchen Grant Program Guidelines which the City granted the Grantee(s) Three Hundred Thousand Dollars ($300,000.00) (“Grant Funds”) for certain property improvements at the property located at 135 E. Florida Ave., in the City of Hemet, identified as Assessor Parcel Number 443281004, more particularly described in the Legal Description attached hereto in Exhibit “B” (“Property”).
B. As consideration for the Grant Funds, the Grantee(s) agrees to comply and be bound by the covenants, conditions, and restrictions set forth in this Regulatory Agreement. Further, this Regulatory Agreement will serve to put future property owners on notice of the terms, conditions, restrictions, covenants and agreements.
C. The parties acknowledge that the detailed obligations, responsibilities, and definitions set forth in the Grant Agreement in Exhibit “A” are hereby incorporated herein by reference.
NOW, THEREFORE, the Grantee(s) covenants, agrees, and declares for itself, its successors, and its assigns that the Property shall be held, used, maintained, and transferred pursuant to the terms of this Regulatory Agreement and the conditions contained herein as follows.
COVENANTS AND RESTRICTIONS
1. Restrictions Run With the Land. The restrictions (“Restrictions”) set forth herein are limitations on the ownership and use of the land as provided in Civil Code § 784 made for the direct benefit of the Property and shall run with the land and be binding upon the Owner, Lessee, and their respective successors and assigns. These Restrictions may be enforced, by the City of Hemet and its respective successors or assigns. The Grantee(s) expressly acknowledges and agrees that these Restrictions and this Regulatory Agreement are reasonable restraints on Grantee(s)’ right to own, use, maintain, and transfer the Property and any estate or interest therein and are not and shall not be construed to be an unreasonable restraint their respective rights to own, use, maintain, and transfer the Property.
2. Kitchen Grant Agreement. The Owner and Lessee agree to comply with all terms and conditions, and obligations set forth in the Kitchen Grant Agreement dated [DATE], which is incorporated herein by reference. In the event of any conflict or inconsistency between the terms of the Grant Agreement, this Regulatory Agreement, and the Program Guidelines, the following order of priority shall apply: (i) first, the Grant Agreement; (ii) second, this Regulatory Agreement; and (iii) third, the Program Guidelines.
3. Use of the Property. The Property shall be used for the business purposes identified in the Grant Agreement and continuous operation of a lawful business during regular business days and hours. Such use shall not change without the written permission of the City.
4. Transfer of the Property. The Owner shall not transfer the Property or any portion thereof without written permission of the City. Lessee may assign their lease interest with
18.B.
REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
4921-6384-5994.1 Page 3 of 18
REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
written permission from both the City and the Owner, provided the assignee agrees to be bound by this Agreement.
5. Maintenance of the Property. The Grantee(s) covenants and agrees for itself and its successors and assigns, that it will, at its sole cost and expense: (i) maintain the appearance and safety of the Property (including all improvements and fixtures) in good order, condition, and repair; and (ii) remove all graffiti placed upon the Property (including all improvements, fixtures, and landscaping) within seventy-two (72) hours of its appearance.
6. Taxes, Assessments, Encumbrances, Charges, and Liens. The Owner shall pay, before delinquency, all taxes and assessments affecting the Property. The Lessee shall not permit any liens related to business operations to be placed against the Property. Both Owner and Lessee shall ensure no liens related to the grant-funded improvements are placed on the Property, and each party shall be responsible for liens arising from their respective obligations under this Agreement.
7. Notice and Right to Cure Defaults. Any defaults, cure procedures, and enforcement mechanisms shall be governed by the provisions set forth in the Grant Agreement.
The City shall have all remedies available at law or equity to enforce payment obligations, including but not limited to recording a lien against the Property and pursuing foreclosure in accordance with applicable law.
8. Nondiscrimination. The Grantee(s) covenants and agrees for itself and its successors and assigns, that all persons employed by or applying for employment by it, and all subcontractors, vendors, and volunteers are and will be treated equally and the Grantee(s) shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, genetic information, gender, gender identity, gender expression, or sexual orientation, or military and veteran status, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as permitted by Section 12940 of the California Government Code and other applicable laws. Further, the Grantee(s) agrees to conform to the requirements of the Americans with Disabilities Act.
9. Compliance with Laws. The Grantee(s) shall keep fully informed of and comply with federal, state and local laws and ordinances and regulations which in any manner affect the Grantee(s), the Property, or in any way affect the performance of services by the Grantee(s). The Grantee(s) shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations.
10. Annual Review. During the two (2) year term of this Agreement after Completion Date, annually, the City shall review the Grantee(s)’ compliance with this Regulatory Agreement. Grantee(s) are subject to the enforcement, procedures, penalties, and remedies set forth in the Grant Agreement, including repayment obligations for unamortized Grant Funds as specified therein. If the Grantee(s) fails to pay within the time provided, such costs shall be a lien upon the Property, as provided by California Civil Code § 2881.
18.B.
REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
4921-6384-5994.1 Page 4 of 18
REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
11. Duration. This Regulatory Agreement shall be effective from the date of its recordation with the Riverside County Recorder through a date that is two (2) years after the Completion Date, as defined in the Grant Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Regulatory Agreement as of [DATE].
PROPERTY OWNER(S) CITY OF HEMET
Name Mark Prestwich, City Manager
Signature
Name
Signature
LESSEE/BUSINESS OWNER APPROVED AS TO FORM:
Name Steven P. Graham, City Attorney
Signature
18.B.
4921-6384-5994.1
EXHIBIT “A”
KITCHEN GRANT PROGRAM
18.B.
4921-6384-5994.1
EXHIBIT “B”
LEGAL DESCRIPTION
18.B.
18.B.
‘DbcusrgnEnvelope ID:F684E027—84EC-dF55A560-38757DI9C517 Kitchen Grant Program Guidelines
Kitchen Grant em or
Program Application ‘W
Please ?ll out the applicatlon completely and suhmitto bsandoval?hemctcargov or send to:
regs
'5“-
Clty of Hemet
Attention: Emnomlc Development Department
445 E.FloridaAve
Hemet, CA92543
(951) 665 - 0265
‘ SECTION1 - APPLICANTINFORMATION:
m m: pl ?n/ IHm ,1ng?LLE/WS, Ma)!.
Grcle AllThat Apply: Property Owner
BusinessName: l ‘5 l/l L L
Trade NamalDBA): f?/ll’OyVS S‘l’Ml:Viol/[KL
’ $141k}
PropertyAddress: 1510 W95?FlWléC/kAVLl‘l?WL9&51/3’fBO
Mailing Address: 2 V
phoneuumben—______
Entity Type: ( ) Sole Proprietor?-H. r l
) Corporation {) Partnership
Total Numberof Businesses in Building: 5
Name(s)of0ther sinesses:
‘ W A’ (”n IArw/nwal‘. TaakMAO—/
mn0%m§
W
EIN/‘iaxID:_3£l’2 KW UEINumber:
' SECTION2 - VROPERTVOWNER INFORMATION(Complete even I]the current tenant Is the applicant]:
1|Page
Cityoi Memet- EmnomicDevelopment
CamScanner
18.B.
’ Ubwslgn Envelope ID:F684EON-MEC-4F55-A550-35757L‘I190517 Kitchen Giant Program Guidelines
V ‘ SECI10N5 - FUNDINGREQUEST8. BUDGET(Max $300,000)
€66 €04”th 0
Item/Expense Descriptlon Vendor/Source Amount
15. TotalRequested
‘ SECHON6 - ACKNOWLEDGMENT:
We certifythat the owneristhe property owner at record and that there are no current zoning codeenforcementactions pending agalnst the propertvr l have read and understand the Program Guidelinesand accept them. l certify that I am quali?ed andwillabideby such conditionsset forth in this application and allreasonableconditionswhichmay he issuedby the CityofHunt in the implem~ - .mam)“ project.
3/13/2026
Date: Property Owner(s) Signature: .-
,UJBDQL 3/13/2026
.. ae: BusinessOwner(s)Signature:
3|Page
Cltvof Hemet - Ewnomlc Development
CamScanner
18.B.
DowSIgn Envelope ID:F3843027-MEc4F55—A560—38757m912517
Kitchen Grant Program Guidelines
PZKE Real Estate. LLc
Property Owner Name: — g
PropertyOwnerMallIngAddress:
’ Hemet' CA 2543
— Propeny Owner Daytime PhoneNumber:
Asthe legal nebula-above property, I hereby grant authorlzatlonto complete the WWW{Mb Date:
3/13/2026
Signature:
' SEC?ON 3 - FUNDING:
Grant Available
WchenGrant
Grant Amounk Requested: 3 LA[?g030
EstimatedTotalProlectCosts 2S2 1ZS
' SEL'I'IDN4 - SCOPEOFWORK:
General Descriptlon of Work:
Sm Wuhw?
2 | P a g e
Cityof Heme!- EconamlcDevelopmem
a CamScanner
18.B.
- Dowsign Envelope ID:Fssaac27-MEC4F55»A55u-oa757u190517 Mike Cutrona Construction
Date 5—23-2025
Mike Cutrona Carltons Steakhouse
7228 OleanderAve 135 E. FloridaAve.
Fontana, Ca. 92336 Hemet, Ca. 92543
(909) 214-4162 (951) 710-7104
(909) 452-7213 Fax
meconstructionQOO?DhoimaiI.l:orn
Ca. Lic. # 1054641
Construction Proposal
Scope of work: design, engineer and provide a set of architectural drawings and building plans {or the construction of a new commercial kitchen within existing building locatedat 135E. Florida Ave. I-Iemel.
Ca.
Description ofwork to be completed:
1, Demo existing walls and ?ooring for trenching for new kitchen and storage.
Sawcut and remove concrete for undergroundutilities for kitchen and storage.
Installnew sinks and ?oor drains
Install new LOGO-galloncrease interceptor
Patch all concrete
Install all ?xtures.sinks, and kitchen equipment
Frame all newwalls
Install 2 ea. New l3’type l hoods
Install new hood the suppression system
10. Install new walk-in cooler and freezer
11. Install new interiordoors
12. Install new HVAC ductwork for kitchen
13, InstallT»bar ceilings with health department approvedtiles l4, Instal new lighting
15. Install ‘FRP in kitchen area and storage area
All work to be completedfor the sum of $545,000.00
Price does not include purchase onntchen equipment.
Price does not include fire sprinkler system. ?nish ?ooring, paint or quartz.
Price does include walk-ins, hoods.hood ?re suppression system, grease interceptor all material and labor.
KITCHEN EQUIPMENT:See attached
Price Includes delivery and set up “56.12100
18.B.
Dwusvyl 2mm ID rsMacnaEc-«iwseoamwmecsn
CARLTONSTEAKHOUSE
DAVECARLTON
951-710-7104
135EFLORIDAAVE
HEMETCA92543
MIKEcUTRoNA
BESTPRICERESTAURANTANDKITCHENSUPPLIES
13373 PERRISBLVDSUITE0-204
MORENOVALLEVCA97553
951-211-1121
SALEREP:NESTORRODRIGUEZ
MODEL DESCRIPTION
45169 24" x so" x 12“ Chrome sneivlng Ki!
(4 pcs.) 24" x 60“ shelves
(Aset) 72" segmented posts
(16 pcs.) dips
(4 pcs.) Ievelers
45168 24" x A!" x 72" Chrome Shelving Kit
(4 pcs.) 24" x 48" shelves
(4 set) 72" segmenkedposts
(16 pm) clips
(4 pcs ) Ievelers
20106 15“ x 24“ Chmml shelf
20096 74" Ghana: Post with L uler
KMBOlMN Hoshizzki Model No. KM-QOIMAI
Ice Maker, Cube-Swle,30"w, air-mnled, sel?contamed condenser praducnan canaciIvup to 905 Ila/24hours 2n 7U'ISD‘
(753 lb AMRIceru?ed at 907701,
18.B.
Dawdm immune-inFasleczv-aaewmmmimn
crescent cube style, stainless steel exterior, RAMA refrigerant mezzo/[6011mm 131) amps, Msr, LIL
Warranty: lVear pans & labor an entire machine
warrantw5-vear pans & labor an evaporator
warranty: S-Vear parts on compressor 8. alr-aaoled condenser 3-8005; 3 aoasF Ice Blrl.48'W, top hinged rrant
opening door, 300 lb ice storage cspamly
rot top mounted ice makers, stainless steel
exterior, nalntedlegs included, protected
with H GUARD Plus Antimicrohlamgem,
EYL.ETLsanltatlun
Warranty 3 Vearpans at laborlor bin
HS 2034 Top Kil,14",ABS
HS 2032 Top Kit, .ABS
HS 5607 Scoop HolderKit
H9320 52 water Filtration system, twin
con?guration. 19.11" H lmanrlutaAcannuge)
Warranty:1 Year an entire water liltratiun
system &replaceable elements, standard
M40A M40A220 EI'L
4am. Planetary Mixer
“Now NSF Certified“
Discover unrivalled mixing power with our M40A-220-ETLPlanetary Mixer Designed for high-Volume producliorl environments
this mixer o?ers exmptlnnal parlormanoe and reliabillly.
Whether preparing large quantities of doughor mixing ingredienb for tasty dishes the M40A»220-ETL guarantees lap-quality results every lime With its industrial capabilities, it's the ideal choice rorbakeries, restaurants and caterers
Heavy duly and abrasion resistant transmission design
MixingSpeed 65/102/296 rprrl
Kneading CapaClty': 13 kg (28 lbs
18.B.
meslgn awelape ID Foueczv-usurssuaoaersrm9:517
Decibel rate: 65:45“)
Slalnless steel allachrnen? Included: bowl.hook, whip, beam! Gear driven
WT-PEGDH melum work lele - Allstainless soul wll" Rem Uplurll 16 gauge stainless sleel
TODreinforced with weldedmn al channel
Sound-deedened between top and channels
Gussets recessed into channel to reduce lstersl movement Galvanized legs. Undershalf and gussets
4" [ear uulurllradlus at Intersection
Rolled edge construction
AdluslableABS bullet feel
72" and up models have 6 legs for extra suenglh
EBR3 Bottom mounted, self-conlainea and lullydetachable BlizzardR290 condensing unit Full-lenglnair duct and air?ow guard ensure optrrnal cola all clrculatlon ArrCirculationguard keeps noorvents trom oosrnrcnon
lime-inlliateo and temperature-termrnatea auln delrost cycle lor seamless ODelallon.
Largecapacity, corrosion-reSIslanlcondenserand evapolalov cons Sellrmalntalning, enery-e?iorem condensate drain pan requlres no external drains Hrgn perlormancet auto»reverse condenser Vanmotor suppons campressorvemilztian Pressure lellemevlces allow rapid cabinet re-emry
. Pre-wired and ready to plug, 115V/sz/1Pn, NEMA545?.
Energl e?lciem slllcone coated armshatter-Drool LEDlightlngpruvldes bngnt 3-year Pans & Labor:5-year Elemical; 10-year Compressor 45167 24" x as" x 72" Chmme SheMng Kn
(4 pos.) 24" x 36" shelves
(4 set) 72" segmented posts
(16 pose) dips
(4 Des.) levelers
18.B.
Dwusrgii Envelope ID F5545C2LNEC4F55A56035757019¢517
WTVP3072 Gsw WT-PJWZ Premium stainless steel Work
'I'Ihle,12"x :lo"
16 gauge slalnless sieei top
Stainless steel undershell.legs and gussels
TODre'lrvfoloedwith welded-on hal channel
Sound—deadened between top and channe|5
Adjustable ABS bullet feet
ETWR2 Side mounted, self-contained and lully deraciiahle Buuard R230condensing unit - Full-length air duct ensurescpximal cold air circulation Tlme-imlimed and temperature-tenninaied auto defrost cycle lor seamlessoperatron - Large canaciw, corrosion-resisiantccndenserandevanoralor coils Sen-maintaining, eneryre?iciem condensate drain pan requires noexternal drains .High De?ormance, aura-reversecondenseil‘an mom! suppnrls compressarvenulalion - Pressure reliefdevlces allowrapid cabinet ie-entry.
- Plele? and readyto plug. 115VIGDHz/1Pn. NEMA5-15?
Heavy duty stainless steel imenor/ exterior with rounded corners lor a hazard-free Open spaced interior Withno walls between compartments
16 gauge. high quality stalnless sieelworklop
Galvanizedsteel bottom and real.
2.5" thicktirgiidensiiy polyurethane insulation.
Fours" swlvel casters wrth locks on rroni set
Energv emclent silicone coated and shanersuroufLEDlryiimg pmvrdes bright 4” nign stainless steel backsplasn tor worktop application. 3-year Parts BrLabor;Sayear Electrical;loryear Compressor WTVPBSDBD GSW WT-PBSOGOPremium Shlnless Steel Work
Table w! Re-r upturn, so" x an"
16 gauge stainless steei top
Galvanized undershelf. legs and gussels
4“ real upturn mdius at inlelsection
Sound—deadenedbetween lap and channels
18.B.
BowmanEnvelope u: FEEAECZT-EAECAFssAsaiumswl5C5”
Adjustable ABS bullet feet
EPRZ Side mounted, self-contained and lullydetachable BlizzardR190condensing unit Full-lengthair duct ensures optimal cold air circulation. i’rmelnnlaled and temperature-terminated auto defrost cycle forseamless operation. » Large capacity, cormslol’I-reslstanl condenser and evaporator culls.
Self-maintaining, energy-e?lclent condensate drain nanrequires noexternaldrains High nerlonnance, aula~reverse condenselfan motor supports compressurvennlatian Pressure relieldeviees allowrapid cabinet reentry
Prerwited and ready to plug,115V/60H211Pn. NEMA5-159.
Heavy duty Stainless steel interiorI exterior wiltlrounded curnerstor a nazard4ree Open spaced Interldrwlrn no walls oetween caolnet compartments Vented stainless steel Danetbelweeritop Dan area and cat'llnel catches food debris - 16 gauge, high quality stainless steel worktopt lidand hood.
Galvanized steel bottom and rear
2‘5" mick nigh density polyurethane rnsulatian.
» Fours" swivel casters with tucks dnfldnt sets
, Energy elticient silicone coated and shatter-prom LEDlighting uravrdesbngm 3-year Pars 8t Labor; 5—yearElectncal; 10-year Compremr WBSM Duk- was“ 4-Weil Aeranat Wet Bath
steam-hie. 50-3! ", Natunrl Gas
Nalural Gas
4 Dan size open water balhs
Adjustable gas valve control
Standard gas satety pilots
Made of 20 gauge stainless sleet
Hs-16155 Gsw its—15155Wall Mount Hnnd Sink
w/ Welded Splash Guards
20 gauge type 304 stainless steel with specml polished satin ?nish Welded splash guards on both sides
Wall mount bracket.4" faucet and slrainsi are included
18.B.
Ducuslgn EnvelwaID rsmczvmzmrswsewmu«scsn
SH24243D 3 Compamnum srnk — 2 Dnin Bonds
Stainless steel legs wlth cross bmang
Extra welded under rubs for longevity
Three-tub sink with left &right drain boards
8" wall mounted faucet holes
Strainer included
Stralner opening diameter (95/ "
Faucet not Included
NSF Certi?ed
DTAaCi Heavy Duty Suinleu steel Clean Dismable
Polished stainless steel work surface
Table has fannedrdawn llp to lit most standard dlshwashers 16 gauge 304 515 top, 11-1/2' backsplash
72” and u models come with 4 legs
ETL cm I1
MODEL0 DISHWASHER, noon WP!
CMA Dlshmachlnes Madzl No. C
Energy Mizer' Dishwasher, door type
15-3/4"w, low temperakure chemical sanitizing with priming swltches lop mourned :amrals, auto "start/slap“
comer design, (40) racks/hour, dellmer switch, Poly Pm" scrap accumulamr, slalnless sleel cansrrucliun, includes (1) npen £4 (1] yes rack 1 HP wash pump, NSF,cUlus
115vl60/lrnh. 16.0 amps, standard
DTMC-R Heavy Duty suinloss steel Ole-n Dilhubla
Polished stainless steel work survaoe
Table has formed-down lip (a fit most standard dishwashers 16 gauge 304 SIS (on, 11-1/2" backsplash
72' and up models some with 4 legs
18.B.
Docusign ErwdweID FEMBCZYaEC4F55ASGMB757m90517
WI'VPBSOZA Gsw USAWT-Pssnu anlum Want Table
All Sllinlasl Steel With 4" Real umurn.
24"W X30"D X35"". ETL
Eca7204 Side mounted, sell-contained and luliydetacnaole BlizzardR290 condensing unit Fullrlenglh air duct ensuresoptimal cold air circulation.
Timerinlllaledand temperature-terminaud auto denost cycle iorseamless operation Large capacity. corrosion-resistant condenser and Evaporalor coils.
Sell-maintaining. energy-ef?uent condensate drain pan requires no enamel drains High periormance. autweverse condenser ian mororsupports compressarvenrilatipn Pressure rellel devices allow rapid cabinet re-entry,
Pre-wiied and ready to plug. 115V/60H1/1Ph,NEMA 5-15?
Heavy duty stainless steel interior I exterior witn rounded corners to: a hazard-nee Open spaced interior with nowalls between compamnenls
Galvanizedsteel bottom and rea
25" thickHighdensity polyurethane insulation
1egauge stainless steel waikmp has extra layer ornigh-grade Heavy duly stainless steel interiur / exlelior
Snap»ln, heat resistant. magnetic d rawergaskets make cleaning and replacement 3»year Paris StLabor; 5-year Electrical;loyear Compressor 3H2A241L 1 Compartment sink - Len Drain Board
Slairlless steel less Withcross bracing
Exlra welded under tubs for longevity
One Iub sink with left drain board
8" Wallmounted faucet holes
Strainer included
strainer opening diameter 35/9"
E85486 Sidemounted. sell-contained and hillydetachanle Elilzaid R230condensing unit FulHength air duct ensuresoptimal cold aircirculation
Trmelninated and temperaturerlemiinaie? auto deirost cycle lor seamless operation
18.B.
DueuslunEVIVEW: io rsueczuaeursenssmuwiscan
Large capacity. corrosionrreslslantcondenserand evaporator coils.
Seltrmailltaining. energy-ef?cient condensate drain pan requires no external drains Highperformance auto-reverse condenser in motor supports compressor ventilation Piewlreo anil ready to plug.115V/60Hz/1Pn,NEMA 5-15F.
Heavyonly stainless steel canntertop wiin textured lamlnale, black vinylexterior.
Open spaced interior with nowalls between compartments
Galvanizedsteel interiorwalls and high quality stainless steel rloor.
I 3/4” thick high density polyurethane Insulation.
Built-incaster tnread receptacles
shielded LEDoarlighting with on/arrswlrcn nrnvloesmm.high color illumination Lowemlssrvlty double glass panes retlecr UVraysint emcient cooling Black PVCoocrirames
Snap-In magnetic doggesket make cleaning and replacement an easy nmcess Hiznstrength, dlercast door handles
Pre-installeo door locks keepyour items sale tromtnett. 3-year Parts & Labor; 5-year Electrical; 10»year Comptmr 50074 50" Glass Frosterl Flute ctn r
Durable stainless steel top, coated aluminum interior
Exterior- corrosion resistant vinylon steel in black finish Adjustable coatedsteel dividers included
Temperature: 0 to 5“F/ -17 7 to -15°
Removable installation board makes it easy to access
condenser coilfor cleaning and servrce
cETLus.ETL Sanitation
2 Year Parts and labor and 5 Year Compressor Warranty
NUMBEROF SHELVES: 5
REFRIGERANT.R290
EBCSD Slde mounted.sell-contained and rullydetachable Blizzard R290condensing unit Fullrl2nglh airduct ensuresoptimal cold aircitciilation.
Time-initiated and temperature-terminated auto derrost cycle for seamless operation
18.B.
Dowson Envelope ID FBBAECZY-MEC-AFsmo-‘Jam‘lmsc?l7
Large capacity. corrosion»resistant condenserand evaporator coils Selt—rnaimaining, energre?iciertt condensate drain pan requires no external drains High performance, autorreverse condenserran motor supports compressorventilatlon Pre-wlredand readyto mug‘ 115V/60H1/1Fh.NEMA5-15P.
Heavy duty stainless steel countenop and railswithtextured laminate, black vinylexterior openspaced interior Withnowalls Delweell companrttenes.
Galvanizedsteel interior
~ 1 3/4" thick mgr density polyurethane insulation
, Built-incaster thread receptacles
Shielded LEDoarlightingwith onion switch provides might, highcolorilliiminanlon anl mounted bottle cap opener and tray detach lorease oi cleaning - Heavy duty stainless steelexterior and galvanized steel interior 314' (Nick high density Dolyurethane insulation
Removableratchet locks keep youritems sate trortt rnert Bryear Parts & Labor; Ssyear Elemioal; 10-year Compressor EBC37 side mounted. sell-contained and [oilydetachable BlizzardR250 condensing unit Full-length air duct ensures optimal cold airCirculation. lime»inniated and temperatuie-terrninated auto detrost cycle tor seamless operation Large capacity conosion-resisiantcondenser and evaporator colts.
Sen-maintaining. enery-elticiem condensate drain pan requires noenemal drains High perrormance.auto-reverse condenser tan motor supports compressorventilation Pre-wlledand readyto plug. 115v/60Hz/1Ph, NEMA5-15Pt
Heavy duty stainless steel countenop and rails with lextured laminate, black vinylexteilor Dpen spaced interiorwlth no walls between compartments
Galvanized steel interior
A 1 3/4" thick high density polyurethane insulation
~ Built-incasterttiread receptacles
Shielded LEDoarlightingwlth on/orlswrtch provides brighthighcolor illumination Front mounted Domecap opener and tray detach tor ease oi cleaning - Heavy duty stainless steel exterior and galvanizedsteel interior 31A"thick high density Dnlytlrelhane Insulation
Removable ratchet locks keep your items sale [rent theft
18.B.
Dacusgn Envelope lD rsaaaczvuam?ssaseuamsmlacsl7
3-year Paris St Labor; Sryear Electrical;10—yearCompressor SEQAZAFM slainlnss sml Flnor Mounl Map sinks
Allstainless sleel conslmction provides brig his and easy maintenance Floor mount design for ultimale insanitation
Included plastic basket sllainer
Recommended Service faucet M840 (not included)
ETL Certified
FMaJSlS-M Sup-r Fawn: Eommerclll Air Curl-inn
uleul While an". Magnnlc Switch
2 speeds, High speed powerlul air blow for high entrance and low speed to save on energy consumption
FD! commercial appllcation
File prooi and anti~eroslve metal case
Slim body easy to be cleaned
Strengthened blower
Best for load service facility
Voltage: 110-120V AC.GDHz
Max Installation Height:34'
Indoor use only
Doal minm switch included
45166 13" x 60” x 12" Chrome shelving Kil
(4 pch 18"x 60" shelves
(4 sel) 72" segmenled posts
(16 p05,) clips
(4 pcs) Ievelers
RTG-SG GRIDDLE, GAS, oouNrill’lop
Royal Range of CaliforniaModel No. RTG-ZS
Griddle, countert?p, gas, 36" w :ooklng surtzce
18.B.
Docuslgn Envelopelo FwBCZT-MEc-AFEWHBTSTD130517
1" lh'lckpolished steel plate, thermostatic controls,
a" grease trough, stalnless steel
sldes a.from valve cover, ' adjustable legs,
90,000 BTU,callus, m-Sanitation, Made ln USA
Two year Ilmlredpans and labor warranty, standard
Gas type to be speci?ed
RR4 RANGE, 24", 4 OPEN BURNERS
Royal Range of Calitorni Model No, RR-4
Restaurant Range, gas, 24", (4) 30,000 BTUlift off tap burners manual controls, space saver nven, 12' x 12” cast lron grates safetvvalve, stalnless steel trout,
sides, valve (aver, klcknlilE8. 11" D hlgh shelf, legs
147,000 BTU,cCSAus, csArsanitatlon, Made in USA
Two year llmited vansand labor warranty, standard
Gas type to be speolfied
Backrlserwith high shell, stalnless sleel, standald
[1120" space saver oven, standard
RR-S RANGE, 35", 6 OPENBunwzns
Royal Range of Callfom‘laModel No. me
Restaurant Range, gas, 36“, ($130,000 BTUliftoff top burners manual controls, standard oven, 12" x 12" cast lmn grates safety valve, stalnless steel front, SldeSr
Valve covel, kickplate 8111“ D hlgh shell, legs,
115,000 BTU, :CSAus, m-Sanltatlon, Made In USA
Two year limiled parts and labor warranty, standard
Gas type to be specified
Backriserw'nn hlgn shelf, stalnless steel, standard
(1) 251/2"standard avert
RARE-36 STEAKNous: Knoll!!!
Royal Range of Calltornla Mudel No. RARB<36
18.B.
destgn Envelope In rammzmaecarswwasmnrscsn
cnarhroller, gas, countenop, 36",
radiant type. manual manual; with pilot,
MNwelded removeable and replaceable lnterlor ?re box, 120,000 BTU tCSAus, csA-sanitatlon, Made in USA
on veal llmited vansand labor warnnw,standard
Gas type to be speci?ed
ass-as SALAMANDERBRDILER,GAS
RoyalRange of CaliforniaMadel Na, R5536
SalamanderBmiler, gas, countenop, as",
2) Individually adlustableinfrared NP: hunters, manual controls wnh piiut roll out slidrack assembly, sKalnlessSleel "HM and sides, 25,000 BTU, cCSAus, CSA-Saniuliml, Made In USA
Two year Ilmited parts and labor warranty, standard
635 type to be spectfied
Wall rnmmrkit or range mount kll
RCOD-l CONVECHDN OVEN, GAS
Rayal Range 0! Callfomla MadelNu.RCOD-1
Canvettiun Oven, gas, single-deck, bakery depth
thermostatic controls, temp range 150‘s - SDU‘F, electronlc lgn‘ltian, 2-speed lan purcelalll interior, dual stainless steel doors with glass VIEwingwindaw on rignt stainless steel front, side; &top, legs, 30,000 BTU
cGAus, CSArSanitatian, Made in USA
Twu year Ilmlled parts and label warranty, standard
Gas tvpe (a be specr?ed
120V/5?/1-Dh,8.0 amps 6' card, standard
Glassvlew window on rightdoor, standard
SDlidstamless steel door on left, standard
Rcos-l cum/Emu" OVEN, GAS
Royal Range of Calrfnmiz MadelNo.Rcos-1
Convection Oven, gas, slngle—dELk,standard depth,
18.B.
Domslgn Envelope ID. F?adsc27aEuF55A5004e757019C517
thermastatic mnlrals, temp range 150* - SOD'F,elerlronlc lgnllian, 2492211fall, (2) burners, (2) interior Kighls,
(s) chrome plated racks with (11) poslrlons, pressure regulalor included, porcelain interior, dual srarnlass sleel daors with glass Viewing window on right slainless steel from, sides Mop, legs, 1/2 HF, 70,000 BTU, mus, 6A~5anirailom Made in usk ENERGYSTAR-'
on year I‘lmiled pans and labor warranty, standard
Gas wpe ro be specified
110v/50—60/1-ph,all) amps, 5' (0rd, three prong plus, slandard GlassView window all light dam, standard
Snlid slainless steel door on left, standard
RFTVSO GAS FLOORmin
Royal Range ol Calilorn‘iaModel No, Rr‘rrso
Frver, gas, floor model, luberfired, SCIlb, Icapacilv full(ank (3) 38,000 BTUburners, inermosraric control, mllllvoll temp (antral with 200‘ - AOO'Frange a" adjuslable legs, stainless steel lranr and sides
114,000 BTU,CSAStar, CSA Flame, NSF, Made in USA
ONE year parts and laoor warramy, live year lirnrred warranry0n lry tank, standard Gas type to be speci?ed
KRalso R LlQUDRBOlTLEDISPLAY
mene MadelNo. KR3160 R
Royal Series Lignred Counlennp Liquor
Display, 3 iier, 60w, (2) wireless remores,
[45) Dotllecapacity, mumcolor LEDligm,
1/4' dnuble lrosred clzar acrylic mps. 1/4"
glossy black acrylic rronnsides &back, 7 fl.
cord th plug on riglilsme. cULus
KRZA1300 ELENDERSTATION
mene MudelND. KR24105D
RoyalSeries Underbar Blender SIallO?r
18.B.
Dnmslgn Envelapa ID, FGMBC'n-MECAF55-A56u-3e7?nisc5i7
wittt dump sInK,18"Wx24"D (to match
speedtall depth). 7" deep sink homsplash
mount Rayal Setles iaucet, Q'Drecessed
hlender shelf WItVIutillly boxmounted
underneath (GFCI receptacle required),
stainless steel top. "ant, &sides
galnniled back a.hottent.stainless steel
legs with adjustahle thermoplastic bullet Ieet, NSF
6 1/2" High Backsplash. standard
30 152 Perforated DrainBasket IorBarSInk,
iits all to" x 14"x10"sink bowls, 5" deep.
with stainless steel nandles, stainless steel
21 443L mene RoyalSeries E ZInstall
Waterline Kit,wall mount, 22' long
KRIS 188T HANDSINK
Krowne ModelNo. KR19185T
Royalsertes underbat Hand sink Unit.free
standing ia'wx 19"Dx36 1/2‘H.0.A.,
14‘W x 10")me to hack x7" deep sin
newt splash mauntnuyal seriestaucet.
built insnap &icmel dispenser, stainless
steel mu,Irant, &sides, stainless steel legs
wnh adiustablethermoplastic bullet ieet,
NSF
6 1/2"HighBacksphash, slandard
KR303 Royal Series Side Splashi LeftArightsides
21 MSLKrwne Royal Series E ZInstall
Watet LineKIi.wall mDU?L 22" long
KRIS MGISR10 ICEBINWITHBOTILF.WELLS
Krowne ModelNo.KR19 Ma?R 10
Royal Series Underbar Cambinatton Ice Bin
18.B.
Doousign Emaape ID rsueczxuecarssaasnaersmtecsir
ice binwitti home wellt as‘Wx 19’? 0A.,
built in 10 circuit cold plate, ZA‘Wice hin
on main.74 lbs. capacity, (1) 12-w insulated
home storage unit on left, stainless steel
lop. iront.it sides, stainless steellegs wlll’l
adjustable thermoplastic bulletieer. NSF
s 111'HighBacksplash, standard
KR19 12 ICEBIN
mene Model ND.KRIS 12
Royalseries underpar Bottle storagulce
Biminsulated,12'Wx19"D.tiulds[6i
noulest azlbs. ice capacity, 10"deep
stainless steel blllliner, 1" drain, stainless
sleellop, "out, Kisides, galvanlled steel
hacks. tantrum,stainless steel legs wrtti
adjustable thermoplastic bullet feet, NSF
”(19 24 mRoyalSerles Undllbar Ice
Bln/CocktailUnit, built in 10 circuit cold
plate, 24"Wx 19"D0.A., 74 lhslce capacity
12" deep slalnLesSsteel h‘inliner, 3W x 3
1/2" Soda Line cut autln hacksplash,1/2'
drainiStainlesssteel lop, fmrll&sides
gilvanlzad steel back &bottom. stainless
steel legs wttiiadiustable thermoplastic
bullet feel, NSF
6 1/ HighBacksplash,standard
Thisunitis built to orderand cannot be
returned
6 1/2" Hiyi Backsplasti, sundard
Kim (3518 DRAINBOARD
KrowneModelNoJ<R19 6518
18.B.
Dacwm Emmi-v:in Faumz?e‘EO‘FS?-As??—au?mlscsl7
Royal Series Underbar Drainboard, free
standingt 18"Wx 19'D, embossed tonwith
1" drain.stainless sleeltap, front, asides,
stainless steel legs wtth adjustable
lhetmopiasttc bullet ieet. NSF
s 11 "HighBacksplash,standard
KR‘JQ53c UNDEREARSINKUNITS
KrowneModetNo KR19 sac
Rnyzl Series Underbar SlnkUnittthree
compartment, sn'w x 19'D,1o"wrde x14"
iront to back it 10" deep compartments,
12" embossed mtegtatdtainboards on left
a tight, splash mount RoyalSeries faucet
wilh swing spoutt apron on iron!4.sides,
(a) removahle over?ow standpines.
stainless steel ton, item, a sides. stainless
steel legs will adjustable thermoplastic
bullet ieel, NSF
a 1/2" HighBacksplash, standard
KRIS PE12 RoyalSeries Federated
Drainbozrd insert, 19' x12".stainless steel
21 usLmene Rayalserles E Zlnstall
water LineKit, wall mount. 22" long
18.B.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 23 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:
18.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 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 to the community, including our businesses, the unemployed, and the youth populations.
Organizational Effectiveness - To identify the work needed inside the City organization to provide services to the community and ensure financial stability effectively.
The proposed FY 2026–27 Strategic Plan Action Item list includes a total of 17 Action Items, comprised of 11 new initiatives and six items carried forward from FY 2025–26. The action list has been updated with direction from the City Council meeting on May 12, 2026. In reviewing and consolidating the 14 items, it was realized that the Simpson Park plan had not been carried over for completion and was therefore added as a carryover item. Two other items that would not consoldiate well are recommended for inclusion in the final action list.
DISCUSSION:
The resulting draft FY 2026-27 Strategic Plan Action Items have been preliminarily prioritized, and a tracking spreadsheet has been developed to assign responsibility to various initiatives. Once approved, this document will be brought to the City Council quarterly to provide a status report on progress.
PREVIOUS COUNCIL ACTION:
At the April 22, 2026 Strategic Plan workshop 26 draft FY 2026–27 Action Items were developed, including five items carried forward from the previous fiscal year. In addition, 14 Action Items received one prioritization dot.
At the May 12, 2026, City Council meeting, the Council reviewed the draft Action Items and directed that the 14 items receiving a single prioritization vote be removed from the draft list or otherwise
18.C.
consolidated with existing initiatives. The Council also provided direction regarding Council Member assignments for the remaining Action Items.
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 alternative direction to the Interim City Manager.
ATTACHMENT(S):
Attachment No.1 - FY 2026-27 City of Hemet Strategic Plan 062326
18.C.
City of Hemet Strategic Plan Action Items – FY 2026-27
June 23, 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
Peterson/Krupa 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
Krupa/Clark 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/
Peterson
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
Clark/Lodge 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 Peterson 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
Krupa/Lodge 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 AdHoc /
Peterson/Krupa
Gregg Holyoak
(Lead) + Kristian
Ticas
Highest Priority
High Priority
Important Priority
* Carryover item
18.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
Krupa/Males City Manager +
Steven Pacifico
*9 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 Clark/Krupa Fire Chief
*10 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
*11 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
Clark Tiffany Barnett
12 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 /
Arts & Culture
Ad Hoc
Jenny Cortes
*13 Develop strategy to ELEVATE Simpson Park with
appropriate public input.
▪ Publish Draft ▪ Complete community outreach and input ▪ Revise Draft ▪ Adoption of StrategyCity Manager’s Office and
Public Works
City Manager
Daniel Cortese
Eric Bunge
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 Krupa/Males Jilleen Ferris
15 Evaluate feasibility of funding the reopening of
the Simpson Senior Center
▪ Identify funding and programming
partnership opportunities that would
provide desired services.
City Manager’s
Office
Clark/Krupa City Manager
16 Identify temporary uses for vacant buildings,
such as small business incubators, event spaces,
and coworking hubs
▪ Identify funding and programming
partnership opportunities that would
provide desired services.
Economic
Development
Ben Sandoval
17 Upgrade trash receptacles in key business areas
to improve cleanliness, support the City’s new
branding, and enhance the visitor experience
▪ Replace City owned downtown trash
receptacles
▪ Review other City owned trash
receptacles for future replacement
Public Works Gregg Holyoak
Dan Cortese
Matt Taylor
18.C.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 23 2026
Department: Finance
Submitted by: Noah Rau, Interim City Manager
Tiffany Barnett, Administrative Services Director;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:
Fiscal Year 2026-27 Operating Budget
RECOMMENDED ACTION:
It is respectfully recommended that the City Council take the following actions:
1. Receive and file the Measure U Citizen Oversight Committee's letter of support for the proposed Fiscal Year 2026-27 Measure U Budget with recommended changes; and
2. Provide direction on the option of liability insurance coverage for Fiscal Year 2026-27; and
3. Adopt the following resolution:
RESOLUTION NO. 2026-105 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEMET, CALIFORNIA, ADOPTING THE BUDGET AND APPROVING APPROPRIATIONS FOR THE FISCAL YEAR COMMENCING JULY 1, 2026, AND ENDING JUNE 30, 2027 BACKGROUND:
To increase transparency and make the budget document more user-friendly, the Budget document is presented in an online digital format. The document can be accessed online through the City's website or directly through the following link:
https://city-hemet-ca-cleardoc.cleargov.com/25403
The City's initial Fiscal Year 2026-27 Budget Workshop was held on March 24, 2026, followed by a second Workshop on May 12, 2026, and a third workshop on June 9, 2026.
ANALYSIS:
Notable Changes
18.D.
At the outset of developing the Fiscal Year 2026-27 Operating Budget, the City faced an estimated budget deficit of $13.28 million. Through significant cost-containment measures, including freezing vacant positions, reducing operational expenditures by 10 percent, and suspending the vehicle replacement program for a second consecutive year, the projected deficit was reduced to $4.5 million.
Since the Budget Workshop held on June 9, 2026, additional adjustments and updated revenue and expenditure projections have further reduced the projected deficit to approximately $4.14 million.
The changes are summarized below:
Measure U Citizens Oversight Committee Acknowledgment
The Members of the Measure U Citizen Oversight Committee met on April 21, 2026, and June 11, 2026, to discuss the draft Fiscal Year 2024-2025 financials and the proposed Fiscal Year 2026- 27 Measure U Spending Plan.
The Committee has submitted a letter to the City Council, accompanying the budget document, to offer its insight and provide recommendations (Attachment 3).
DISCUSSION:
FY 2026-27 Budget
18.D.
Revenue Highlights
The City continues to experience flattened sales tax performance. The City's recommended Fiscal Year 2026-27 sales tax revenues are $17,675,000, which is a modest increase of 2.9% from Fiscal Year 2025-26. Similarly, the Fiscal Year 2026-27 Measure U revenues are projected to be approximately 4.9% above the prior year adopted budget for a projected total of $16,985,000.
Property tax revenues have remained strong and steady with a forecasted increase of approximately
5.4% to $11,740,000 in comparison to the Fiscal Year 2025-26 adopted budget. Vehicle License Fee Adjustment Amount (VLFAA), which is a financial mechanism used in California to help adjust funding that cities receive in lieu of property taxes that were previously tied to vehicle registration fees, is proposed to increase approximately 6.5% to $11,170,000 in comparison to the Fiscal Year 2025-26 adopted budget. VLFAA continues to increase due to changes in property tax allocations and state legislation.
Community Development Revenues are anticipated to have a dramatic decrease from prior fiscal year. In projecting revenue for Fiscal Year 2025-26, average estimates included some one-time influx of revenues from developing warehouses that skewed the actuals. This overstated revenue estimates. Moving into Fiscal Year 2026-27, these revenues have been normalized to realistic projections.
Below is a table reflecting Fiscal Year 2025-26 adopted revenues compared to Fiscal Year 2026-27 recommended revenues:
Expenditure Highlights
The City continues to experience significant cost increases in several key expenditure categories.
Over the past three fiscal years, the City's liability insurance premiums have increased by approximately $6 million. During the same period, the City's Animal Services contract with the County of Riverside has increased by approximately $822,000. These cost increases, combined with rising
18.D.
labor expenses and CalPERS pension obligations, have created significant challenges in achieving a balanced operating budget.
As the City enters Fiscal Year 2026-27, it continues to face a structural budget deficit that is projected to require the use of more than $4 million in General Fund reserves to maintain current service levels.
In addition, the proposed budget includes approximately $5.6 million in one-time expenditures funded through available fund balance for capital infrastructure investments and other non-recurring projects.
The table below compares the Fiscal Year 2025-26 adopted expenditure budget to the Fiscal Year 2026-27 proposed expenditure budget.
Department Uses:
Non-Departmental Uses:
One-time Uses:
18.D.
Overall Uses:
Fund Balance Impact
During the Budget Workshop on June 9, 2026, the presentation provided a preliminary estimate of the General Fund Balance as of June 30, 2026, of $51,719,000. Staff projects the use of $9.79 million in General Fund reserves will be required in FY 2026-27 to cover the $4.14 million operational deficit, in addition to the one-time investments itemized above. The General Fund balance is projected to be $41,925,000 as of June 30, 2027, inclusive of Measure U. The General Fund balance without Measure U is anticipated to be approximately $23.4 million, which reduces the reserve to 32%, below the current 40% requirement.
18.D.
Personnel Changes
From the adopted budget for fiscal year 2025-26 to the proposed budget for fiscal year 2026-27, citywide positions decreased by 8.5 full-time equivalent employees, which consists of the following combination:
Added Positions +11.5 FTE
+1 Senior Plans Examiner (In lieu of consultants — Community Development Department) +1 Building Inspector II (In lieu of consultants — Community Development Department) +1 Building Technician I (In lieu of consultants — Community Development Department) +1 Administrative Assistant (Community Development Department) +2 Public Safety Dispatch Supervisors (AB 645 Requirement - Police Department) +2 Public Safety Dispatchers (Canyon Lake Service Agreement - Police Department) +1 Network Systems Administrator (Administrative Services Department) +1 Human Resources Analyst (Administrative Services Department) +1 Maintenance Worker I PT (Public Works)
+0.5 Office Specialist II PT (Public Works)
Frozen Positions -17 FTE
18.D.
-1 Office Specialist Confidential (City Clerk Department) -1 Housing Specialist (Community Development Department) -1 Office Specialist III (Community Development Department) -1 Deputy Fire Chief (Fire Department)
-1 Emergency Services Coordinator (Fire Department)
-1 Public Safety Operator (Fire Department)
-0.5 Library Page (Library)
-6 Police Officers (Police Department)
-1 Community Services Officer (Police Department)
-1 Outreach and Engagement Specialist (Police Department) -0.5 Civilian Investigator (Police Department)
-1 Human Resources Technician (Administrative Services Department) -1 Senior Engineering Technician (Public Works)
Adjusted Positions -3 FTE
-3 Fire Captains (Fire Department)
-3 Fire Engineers (Fire Department)
+3 Fire Fighters (Fire Department)
Final Direction Requested
During the City Council meeting on June 9, 2026, the City's insurance broker with Alliant provided a presentation on additional options for liability insurance coverage. As the Fiscal Year 2026-27 Operating Budget is presented, the insurance coverage as expiring has been built in with a premium of $7.04 million. There is an alternate option that will yield General Fund savings of $945,000. In assessing risk mitigation measures implemented and historical claims history, staff is recommending to move forward with Option 2: Alternative #1 reflected in the chart below.
If City Council selects this option, staff will reduce the General Fund Non-Departmental liability insurance line item by $945,000, from $5 million to $4,055,000.
PREVIOUS COUNCIL ACTION:
18.D.
Fiscal Year 2026-27 Budget Workshops were held on March 24, 2026, May 12, 2026, and June 9, 2026.
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 City Council is required to adopt a budget for the succeeding fiscal year prior to the end of the current fiscal year.
ATTACHMENT(S):
Attachment 1 - Reso. No. 2026-105 FY 2026-27 Budget
Attachment 2 - GANN Limit Fiscal Year 2026-27
Attachment 3 - 2026-06-11 Measure U Letter to Council
Attachment 4 - FY2627 Operating Budget CM Recommended
18.D.
CITY OF HEMET RESOLUTION NO. 2026-105 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-105
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, ADOPTING THE BUDGET AND
APPROVING APPROPRIATIONS FOR THE FISCAL YEAR
COMMENCING JULY 1, 2026, AND ENDING JUNE 30,
2027
WHEREAS, the City Manager has prepared and submitted to the City Council the proposed budget for the City of Hemet for the fiscal year commencing July 1, 2026, and ending June 30, 2027; and
WHEREAS, the City Council has reviewed and considered the proposed budget, together with any modifications directed by the City Council; and WHEREAS, the proposed budget, as adopted by the City Council, establishes appropriations for City departments, funds, programs, projects, and other lawful municipal purposes, subject to applicable ordinances of the City of Hemet and laws of the State of California; and
WHEREAS, Article XIII B of the California Constitution and Government Code section 7910 require the City Council to establish the City’s annual appropriations limit; and
WHEREAS, the documentation used to determine the City’s Fiscal Year 2026-27 appropriations limit has been made available to the public in accordance with Government Code section 7910; and
18.D.
CITY OF HEMET RESOLUTION NO. 2026-105 2
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WHEREAS, the City’s Fiscal Year 2026-27 appropriations limit has been calculated as $163,847,939; and
WHEREAS, the Fiscal Year 2026-27 budget appropriations subject to the appropriations limit total $88,839,100 and are therefore below the City’s appropriations limit; and
WHEREAS, the City Council desires to adopt the Fiscal Year 2026-27 budget, approve appropriations, establish the City’s appropriations limit, and authorize certain administrative actions necessary to implement and administer the budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS, AND RESOLVES AS FOLLOWS:
SECTION 1. RECITALS. The foregoing recitals are true and correct and are incorporated herein by this reference.
SECTION 2. ADOPTION OF BUDGET AND APPROVAL OF
APPROPRIATIONS. The City Council hereby adopts the Fiscal Year 2026-27 Budget for the City of Hemet for the fiscal year commencing July 1, 2026, and ending June 30, 2027, as presented to and modified by the City Council, and approves the appropriations set forth therein. A copy of the adopted Fiscal Year 2026-27 Budget shall be filed in the office of the City Clerk, and the City Clerk is directed to certify that the budget has been adopted by this Resolution.
18.D.
CITY OF HEMET RESOLUTION NO. 2026-105 3
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SECTION 3. ESTABLISHMENT OF GENERAL LEDGER APPROPRIATIONS.
The Administrative Services Director is authorized to establish appropriations in the City’s General Ledger consistent with the adopted Fiscal Year 2026-27 Budget.
SECTION 4. BUDGETARY CONTROL AND LIMITATION ON EXPENDITURES.
Expenditures for each Department and Fund are limited to the amounts authorized by the City Council in the adopted Fiscal Year 2026-27 Budget, together with any carryover amounts and supplemental appropriations authorized in accordance with this Resolution or separately approved by the City Council. Expenditures may not exceed budgeted appropriations at the Department level within a Fund. Any transfer of appropriations between Departments or Funds, any transfer from unappropriated fund balance or contingency reserves, or any increase in the total appropriation for a Department or Fund must be approved by the City Council.
SECTION 5. CITY MANAGER TRANSFER AUTHORITY. The City Manager is authorized to transfer budgeted amounts between divisions, programs, line items, and accounts within the same Department and Fund during the fiscal year, provided that such transfers do not increase the total appropriation for that Department within that Fund. The City Manager shall report any such transfers to the City Council within fortyfive (45) days.
SECTION 6. CARRYOVER OF UNEXPENDED APPROPRIATIONS AND
ENCUMBRANCES. At the close of the fiscal year, unexpended appropriations in the operating budget may be encumbered as necessary to underwrite the expense of outstanding purchase commitments. Unexpended appropriations for authorized but
18.D.
CITY OF HEMET RESOLUTION NO. 2026-105 4
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uncompleted projects previously approved by the City Council may be carried forward to the next succeeding fiscal year upon written approval of the City Manager, provided that such carryforward is limited to the same approved project or purpose, does not increase the total project appropriation unless separately approved by the City Council, and remains subject to all applicable restrictions on the source of funds.
SECTION 7. BUDGET AMENDMENTS. Total appropriations within any Fund may be increased only by amendment of the Budget through duly adopted action of the City Council.
SECTION 8. REDUCTION OF APPROPRIATIONS AND REVENUE
ESTIMATES. The City Manager is authorized to reduce expenditure appropriations within funds as a method of fiscal control. The Administrative Services Director is authorized to decrease revenue estimates to reflect economic change during the fiscal year.
SECTION 9. INTERFUND TRANSFERS AND CASH FLOW MANAGEMENT.
The Administrative Services Director is authorized to make the interfund transfers expressly listed in the adopted Fiscal Year 2026-27 Budget. The Administrative Services Director is further authorized to make temporary cash-flow transfers or advances as necessary for the competent operation and control of City business and to provide adequate cash flow, provided that such transfers or advances are consistent with the adopted Budget, are properly documented in the City’s financial records, do not violate State law, City ordinances, bond covenants, grant requirements, restricted fund
18.D.
CITY OF HEMET RESOLUTION NO. 2026-105 5
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requirements, or other legal restrictions, and do not create or increase an appropriation except as approved by the City Council.
SECTION 10. APPROPRIATIONS LIMIT. The City Council hereby stablishes and adopts the City of Hemet’s appropriations limit for Fiscal Year 2026-27 in the amount of $163,847,939, as calculated in Attachment 2, the Gann Limit Calculation.
The City Council further finds and determines that the appropriations subject to the limit in the Fiscal Year 2026-27 Budget are $88,839,100 and therefore do not exceed the City’s appropriations limit.
SECTION 11. HOME PROGRAM INCOME. The City Manager is authorized to appropriate HOME program income received by the City during Fiscal Year 2026-27 for re-loan or expenditure for eligible HOME program purposes, subject to applicable federal and state requirements, HUD-approved plans and agreements, and City Council-approved program guidelines.
SECTION 12. INCORPORATION OF COUNCIL ADJUSTMENTS AND
CLERICAL CORRECTIONS. Any adjustments made by the City Council during the budget hearing and documented in the minutes for this action shall be incorporated into the final printed budget document. The City Manager is authorized to approve corrections in the budget document that are clerical, typographical, formatting, or nonsubstantive in nature, provided that such corrections do not change the appropriations approved by the City Council or otherwise alter the substantive fiscal policy decisions reflected in the adopted Budget.
18.D.
CITY OF HEMET RESOLUTION NO. 2026-105 6
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SECTION 13. ATTACHMENTS. The following attachments are approved and incorporated herein by this reference: Attachment 2: Gann Limit Calculation and Attachment 3: Fiscal Year 2026-27 Budget
SECTION 14. EFFECTIVE DATE. This Resolution shall become effective immediately upon adoption.
SECTION 15. CERTIFICATION. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 23rd day of June 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
__________________________
Rosalia Butler, City Clerk
18.D.
CITY OF HEMET RESOLUTION NO. 2026-105 7
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State of California )
County of Riverside )
City of Hemet )
I, Rosalia Butler, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 23rd day of June 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
__________________________
Rosalia Butler, City Clerk
18.D.
CITY OF HEMET
26/27 EXPENDITURE LIMITATION
CALCULATION
All funds Budgeted Expenditures 26/27 154,596,300
Less:
Fee Supported:
Fund 225/LLMD (793,000)
Fund 227/Post Prop-218 Lighting Dist (58,000)
Fund 228/Post Prop-218 Landscape Dist (1,023,000)
Fund 229/Public Works CFD (260,000)
Fund 254/Sewer (3,458,000)
Fund 571/Water (13,732,000)
Rev - General User Fees (110-0601 - 110-0790) (5,255,000) Rev - Licenses & Permits (fund 110 & 120) (4,145,000)
Rev - Fines & Forfeits (55,000)
Rev - Literacy Grants (33,400)
Internal Service Funds:
Fund 680 / Administrative Services (3,046,000)
Fund 681 / Workers' Comp (1,800,000)
Fund 682 / Medical Insurance (515,000)
Fund 683 / Liability Insurance (10,680,000)
Fund 684 / Vehicle Maintenance (2,219,000)
Fund 685 / Facility Maintenance (2,773,000)
Fund 686 / PW Admin (2,384,000)
Fund 687 / Dental/Vision -
Fund 689 / Retiree Medical (4,700,000)
Fund 690 / Unemployment Benefits (25,000)
Fund 691 / Legal Services (1,500,000)
Fund 692 / Emergency Services -
Debt Service:
Fund 396 / RDA Retirement Obligation Fund (125,000)
Fund 496 / Hemet Project Area 2014 Refunding (888,000)
Fund 788 / Heartland 2006 Refunding (757,000)
Grants:
Fund 240 / CDBG (924,300)
Major Capital (over $100,000) (4,608,500)
Expenditures Subject to Limitations 88,839,100
PY Gann x CY Cost of living change x CY Population change Prior Year Gann Limit 156,731,251
Current Year Per Capita Cost of Living Change 1.0495
Current Year Population Change 0.9961
Calculation of factor for CY 1.0454
2026/27 Gann Expenditure Limit 163,847,939
Variance Below Gann Limit 75,008,839
18.D.
Measure U Citizen Oversight Committee
445 E. Florida Ave.
Hemet, CA 92543
June 11,2026
Hemet City Council
445 E. Florida Ave.
Hemet, CA 92543
Dear Honorable Mayor and Members of the City Council:
The Members of the Measure U Citizen Oversight Committee met on June 11,2026 to discuss the proposed FY2026/27Measure U Budget.
The proposed expenditures, as presented, meet with the intentions to expend the Measure U proceeds set forth in Resolution Nos. 4703 and 4731 and Ordinance 1918.
We appreciate the opportunity to serve the community, and we look forward to reviewing the expenditures for Measure U at a subsequent meeting to be determined. There are no concerns about the Measure U committee expenditure for FY 2026—27. There were also no concerns of the proposed expenditure FY 2026—
27. Sincerely,
ce Chair Dick Clark
Committee Member Meraz
City of Hemet | 445 E Florida Avenue | Hemet, CA 92543 | (951) 765-2300 | hemetcagov
18.D.
City of Hemet
Operating Budget
Fiscal Year 2026-27
18.D.
TABLE OF CONTENTS
Reader's Guide 4
Introduction 6
Award 11
History of the City 13
Demographics 14
Organizational Structure 19
Budgeting Process & Timeline 20
Basis of Budgeting 23
Fund Structure 25
Financial Policies 31
Executive Summary 33
Summary Charts 34
Strategic Plan 39
Priorities and Issues 43
Short-Term Organization Factors 44
Long Range Financial Plans 46
Budgeted Positions 47
Funds Summary Overview 61
All Funds Summary 62
General Fund 74
Measure U 81
Special Revenue Funds 84
Development Impact Fee Funds 95
Enterprise Funds 102
Internal Service Funds 106
Departments Summary 113
All Department Summary 114
City Council 124
Treasurer 127
City Manager 130
City Clerk 137
Administrative Services 142
Community Development 158
Library 172
Fire 182
Police 199
Public Works 221
Assessment Districts 248
Non-Departmental 272
Funding Sources Overview 284
Major Revenue Sources 285
Capital Improvement Plan 307
Debt Services Overview 309
18.D.
Appendix 310
GANN Appropriations Limit 311
Fiscal Year 2026-27 Annual Operating Budget Resolution 313 Reserve Fund Balance Requirement Ordinance 320
Glossary of Budget and Financial Terms 325
18.D.
Reader's Guide
The City of Hemet's budget serves many purposes: to establish financial guidelines for meeting City Council policies and priorities, as a communication tool for residents about the services provided by the City, how much the services cost, and as a financial and planning tool for city management and staff to use as a guide to spending decisions. The budget described in this document is the Operating Budget for city operations; major capital projects are budgeted in the Capital Improvement Program document, which is separately adopted by the City Council.
The City operates on a one-year budget cycle covering the fiscal year from July 1 to June 30. The public and City Council receive a mid-cycle review approximately 6 months after the initial adoption of the budget.
Document Organization
This guide is designed to help you navigate the City of Hemet's budget document and understand the purpose of each major section.
Introduction: Provides the City Manager's transmittal letter, history of the City, key demographic information, organizational structure, budgeting process and timeline, basis of budgeting, fund structure and financial policies to give context for budget decisions.
Executive Summary: Includes the budget summary charts, the City's Strategic Plan, including the City's Mission Statement, Vision, Values and Goals. This section also features priorities and issues, short-term organizational factors, long-range financial plans, and personnel summaries.
Funds Summary Overview: Here you’ll find a breakdown of the city's various funds, including the General Fund, Special Revenue Funds, Development Impact Fee Funds, Enterprise Funds, and Internal Service Funds.
Department's Summary: This section outlines each City department’s budget, areas of responsibility, and key budget details.
Funding Sources Overview: Describes the various revenue sources that support City operations, including detailed revenue schedules across all fund types.
Capital Improvement Plan: The Capital Budget is adopted separately from the Operating Budget. This section summarizes the Capital Improvement Plan (CIP) and includes a link to the full document.
Debt Services Overview: This section explains the city’s debt obligations, including what funds are used to pay off debt and the current debt levels. At this time, the City does not have any debt; therefore, no detail is within this section.
Appendix: Contains additional materials to support understanding of the budget, including a glossary, acronyms, and detailed financial schedules for reference.
Digital Version
The City of Hemet is proud to offer a digital version of the Fiscal Year 2026-27 Operating Budget as an accessible, userfriendly alternative to the traditional printed document. This interactive version includes the same comprehensive content as the PDF edition, enhanced with dynamic charts, graphs, and navigation tools that make it easier to explore the City’s financial priorities and funding allocations. To view the current and prior year budget documents and financial reports, please visit the City of Hemet's website.
Reader's Guide
FY2627 Operating Budget CM Recommended | Hemet Page 21 of 345 Page 4
18.D.
Reader's Guide
FY2627 Operating Budget CM Recommended | Hemet Page 22 of 345 Page 5
18.D.
Transmittal Letter
Introduction
FY2627 Operating Budget CM Recommended | Hemet Page 23 of 345 Page 6
18.D.
Introduction
FY2627 Operating Budget CM Recommended | Hemet Page 24 of 345 Page 7
18.D.
Introduction
FY2627 Operating Budget CM Recommended | Hemet Page 25 of 345 Page 8
18.D.
Introduction
FY2627 Operating Budget CM Recommended | Hemet Page 26 of 345 Page 9
18.D.
Introduction
FY2627 Operating Budget CM Recommended | Hemet Page 27 of 345 Page 10
18.D.
GFOA Award
Award
FY2627 Operating Budget CM Recommended | Hemet Page 28 of 345 Page 11
18.D.
Award
FY2627 Operating Budget CM Recommended | Hemet Page 29 of 345 Page 12
18.D.
History of the City
History of the City
FY2627 Operating Budget CM Recommended | Hemet Page 30 of 345 Page 13
18.D.
Demographics
Population
TOTAL POPULATION
91,326
0.75%
vs. 2023
GROWTH RANK
112 out of 506 Municipalities in California
* Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses
DAYTIME POPULATION
82,619
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 20k
40k
60k
80k
100k
Demographics
FY2627 Operating Budget CM Recommended | Hemet Page 31 of 345 Page 14
18.D.
POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates 6K
6K 6K
5K 5K
12K
11K
10K
5K
6K
10K
7K
3K
<5 5-9 10-14 15-19 20-24 25-34 35-4445-54 55-5960-6465-7475-84 >85 0 3K
5K
8K
10K
13K
15K
Demographics
FY2627 Operating Budget CM Recommended | Hemet Page 32 of 345 Page 15
18.D.
Household
TOTAL HOUSEHOLDS
32,585
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base. -7%
lower than state average
-12%
lower than state average
29%
higher than state average
68%
higher than state average
* Data Source: American Community Survey 5-year estimates Family Households
50%
Married Couples
44%
Singles
31%
Senior Living Alone
17%
Demographics
FY2627 Operating Budget CM Recommended | Hemet Page 33 of 345 Page 16
18.D.
Economic
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.
HOUSEHOLD INCOME
Above $200,000
7%
-68.20%
lower than state average
Median income
$57,719
-41.77%
lower than state average
Below $25,000
20%
60.34%
higher than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
Demographics
FY2627 Operating Budget CM Recommended | Hemet Page 34 of 345 Page 17
18.D.
Housing
2024 MEDIAN HOME VALUE
$352,200
* Data Source: 2024 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.
HOME VALUE DISTRIBUTION
* Data Source: 2024 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.
HOME OWNERS VS
RENTERS
Hemet State Avg.
38%
Rent
62%
Own
44%
Rent
56%
Own
* Data Source: 2024 US Census
Bureau, American Community
Survey. Home value data
includes all types of owneroccupied housing.
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
100K
150K
200K
250K
300K
350K
400K
142
512
2,740
4,845
4,009
1,334
1,067
655
747
1,558
2,704
> $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
0 1,000 2,000 3,000 4,000 5,000
Demographics
FY2627 Operating Budget CM Recommended | Hemet Page 35 of 345 Page 18
18.D.
Organizational Structure
Organizational Chart
Citizens of Hemet
Connie HowardClark
Councilmember
District 1
Jackie Peterson
Councilmember
District 2
Tom Lodge
Councilmember
District 3
Noah Rau
Interim City Manager
Steven Grahan
City Attorney
Tiffany Barnett
Admin. Services
Director
Kathye Caines
Library Manager
Monique AlanizFlejter
Community
Development
Director
Ben Sandoval
Economic
Development
Director
Michael Arellano
Chief of Police
Cameron Phillips
Interim Chief of Fire
Jilleen Ferris
Interim Public Works Director/City
Engineer
Rosalia Butler
City Clerk
Joe Males Mayor Pro-tem
District 4
Linda Krupa Mayor
District 5
Organizational Structure
FY2627 Operating Budget CM Recommended | Hemet Page 36 of 345 Page 19
18.D.
Budget Process and Timeline
The annual budget process begins in December of each year. The budget team, which includes the City Manager, Administrative Services Director, Accounting Manager, Principal Accountant and all Department Heads, reviews the needs of the City and available funding. The budget team uses this information to develop spending priorities and department expenditure targets for the upcoming fiscal year.
In fiscal year 2021-2022, the City Manager incorporated city services into programs and concepts that align with the Council’s established priorities, creating a first-time program-based budget. Fiscal year 2026-2027 will be the sixth year that program-based budgeting is being used and will continue to layer the foundation of historical data in this manner.
In December, a Budget Memo is sent out to all Department Heads by the City Manager with instructions on how to proceed with the initial budget.
The Finance Division works on updating salary and benefit costs, which include any Memorandum of Understanding (MOU) increases, CalPERS increases, and any merit increases due to individual employees. The Finance Division also updates cost allocation information for use with Internal Service Fund allocations.
Department revenue estimates are compiled from projections of activity for the upcoming fiscal year. The Administrative Services Director and the City Manager meet shortly after requests are submitted to analyze the City’s ability to fund all programs and review any requests for additions. These additions include the following:
Expenditure requests above the established department target; Personnel requests, including temporary personnel, and any proposed reclassifications.
The budget team holds meetings with each department to discuss their budget requests and to obtain additional information to assist in the resolution of the requests. Following this review, department staff perform a final adjustment to their line item submissions.
In March, April, and May public City Council budget workshops are held to receive public comment and to review the components of the Proposed Budget and any modifications to fiscal policies, prior to formal consideration for adoption. Any changes based on this review are incorporated prior to adoption at a subsequent City Council meeting, which should occur in June.
All appropriations lapse at year-end, except for those relating to encumbrances approved for carryover to the following fiscal year. The City Council has the legal authority to amend the budget at any time during the fiscal year. Budgetary controls are maintained to ensure compliance with the budget as approved by the City Council. Adjustments between funds or requests for additional funding require the approval of the City Council. As referenced in the Budget Resolution, the City Manager has the authority to make changes to departmental budgets. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the department level.
The City has a formalized mid-year budget review process which is used to update the appropriations and revenue projections halfway through the fiscal year. The City begins this process in December by analyzing revenue projections, service contracts, new City Council priorities, and the impacts of legislation from the State and Federal Government. In January, departments review their individual budgets to identify any savings or to request additional funds to meet the needs of new programs or spending priorities. The result is a Mid-Year budget document that ensures that sufficient funding is available to meet the updated objectives and priorities for the remainder of the fiscal year. This document is taken to the City Council for adoption.
Budgeting Process & Timeline
FY2627 Operating Budget CM Recommended | Hemet Page 37 of 345 Page 20
18.D.
Below is the initial, tentative budget calendar submitted to Council. Modifications and additions have occurred through the process of developing the budget document.
● December 1, 2025
Initial Budget Team coordination meeting with City Manager ● December 9, 2025
Present City Council with proposed budget timeline for review ● December 16, 2025
Budget kick-off meeting with all departments
● January 20, 2026
Back-end preparation of schedules
● January 27, 2026
Mid-year reports presented to Council
● February 2, 2026
Measure U Citizens Oversight Committee Asset Location Tour ● February 3, 2026
Issue budget instructions to departments
● February 3, 2026
Request Internal Service data from departments
● February 3, 2026
Position listing distributed to departments
● February 19, 2026
Position listing due back to Finance
● February 19, 2026
Revenue projections due to Finance
● February 19, 2026
Internal Services data due to Finance
● February 19, 2026
Expenditure department requests due to Finance via Eden entry ● February 23, 2026
Compilation of data
● March 24, 2026
1st Council Budget Workshop & Municipal Health Diagnostic Budgeting Process & Timeline
FY2627 Operating Budget CM Recommended | Hemet Page 38 of 345 Page 21
18.D.
● March 27, 2026
Strategic Planning Workshop
● March 31, 2026
Strategic Planning and Budget Workshop review and revisions due to Finance ● March 31, 2026
Five-year financial forecast (General Fund)
● April 1, 2026
Revisions of preliminary budget draft
● April 16, 2026
1st Measure U Oversight Committee Workshop
● April 21, 2026
2nd Council Budget Workshop
● April 27, 2026
Budget meetings with Departments/Divisions
● May 11, 2026
May budget revisions due to Finance
● May 12, 2026
Finalization of draft budget
● May 28, 2026
2nd Measure U Citizens Oversight Committee Workshop
● June 9, 2026
Council Budget Adoption
● June 23, 2026
Council Budget Adoption (if necessary)
Budgeting Process & Timeline
FY2627 Operating Budget CM Recommended | Hemet Page 39 of 345 Page 22
18.D.
Basis of Budgeting
The City of Hemet prepares and adopts its annual budget in accordance with the provisions of the California Government Code and the City's adopted financial policies. The budget serves as the City's financial plan and provides the framework for allocating resources to achieve the City's strategic goals and service priorities.
The budget is prepared using a modified accrual basis of accounting for governmental funds, which recognizes revenues when they are both measurable and available to finance current expenditures and recognizes expenditures when liabilities are incurred, except for certain long-term obligations such as debt service, compensated absences, and pension liabilities, which are recognized when due.
Proprietary funds, including enterprise and internal service funds, are budgeted using the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of related cash flows.
The budget includes appropriations for operating expenditures, capital outlay, and debt service requirements.
Appropriations are established at the department and fund level and are subject to budgetary controls and monitoring throughout the fiscal year. Any amendments to appropriations exceeding administrative authority require approval by the City Council.
While the City's Annual Comprehensive Financial Report (ACFR) is prepared in conformity with Generally Accepted Accounting Principles (GAAP), certain budgetary presentations may differ from GAAP reporting for management and operational purposes. Such differences may include the treatment of encumbrances, capital projects, interfund transfers, and long-term liabilities.
The City's budget is developed using conservative revenue estimates, prudent expenditure assumptions, and multiyear financial forecasting to promote long-term fiscal sustainability. Budget decisions are guided by the City's Strategic Framework, financial policies, reserve requirements, and commitment to maintaining essential public services while preserving fiscal resiliency.
Budgetary Basis by Fund Type
Fund Type Basis of Budgeting
General Fund Modified Accrual
Special Revenue Funds Modified Accrual
Capital Projects Funds Modified Accrual
Debt Service Funds Modified Accrual
Enterprise Funds Accrual
Internal Service Funds Accrual
Fiduciary Funds* Not Budgeted by the City
*Fiduciary funds are excluded from the City's budget because the assets held in these funds are not available to support the City's programs or operations.
The City of Hemet's budget is prepared on a basis of budgeting that is substantially consistent with Generally Accepted Accounting Principles (GAAP), except where budgetary practices are necessary to facilitate operational management, legal compliance, and fiscal oversight.
Basis of Budgeting
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Basis of Budgeting
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Fund Structure
The City of Hemet’s revenues and expenditures are accounted for in a series of funds. Each fund is an autonomous accounting entity, established in accordance with legal and professional accounting standards. Funds are used to segregate the various financial activities of a governmental entity and to demonstrate compliance with specific regulations, restrictions or limitations, (i.e., demonstrating that restricted revenues are spent only for allowed purposes).
Funds used in government are classified into three broad categories: governmental, proprietary and fiduciary. Governmental funds include activities usually associated with the operations of a typical state or local government (public safety, general government activities, etc.). Proprietary funds are used in government to account for activities often found in the private sector (the City’s water utility is a prime example). Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent. The appropriated funds utilized by the City of Hemet are detailed below. The City of Hemet details the Capital Improvement Projects in a separate document, although the funds are listed below for informational purposes.
GENERAL FUNDS
General Fund (Fund 110)
Measure U (Fund 115)
SPECIAL REVENUE FUNDS
Public Safety Towing (Fund 130)
Gas Tax (Fund 221)
Measure A (Fund 222)
AQMD (Fund 224)
L&LMD (Fund 225)
Lighting Districts Post Prop 218 (Fund 227)
Landscape Districts Post Prop 218 (Fund 228)
Public Works CFD (Fund 229)
Asset Forfeiture (Fund 231)
Public Safety Grants (Fund 232)
Public Safety CFD (Fund 234)
COPS/AB3229 (fund 236)
Local Law Enforcement Block Grant (Fund 237)
Community Development Block Grant (240)
General Plan (241)
Sewer/Storm Drain (Fund 254)
Miscellaneous Grants (Fund 266)
American Rescue Plan Act (Fund 270)
DEVELOPMENT IMPACT FEE FUNDS
Public Meeting Facilities (315)
General Facilities (316)
Flood Control (Fund 326)
Bridges/Steets (Fund 329)
Law Enforcement (Fund 331)
Fund Structure
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Fire Facilities (Fund 332)
Park Development (Fund 361)
Valley Wide DVL (Fund 362)
Library Facilities (Fund 363)
Capital Projects (Fund 370)
ENTERPRISE FUNDS
Water (Fund 571)
INTERNAL SERVICE FUNDS
Equipment Replacement (Fund 380)
Administrative Services — Information Technology (Fund 680) Workers Compensation (Fund 681)
Dental and Vision (Fund 682)
Liability Insurance (Fund 683)
Fleet Maintenance (Fund 684)
Facilities Maintenance (Fund 685)
Public Works Administration (Fund 686)
Other Post-Employment Benefits (Fund 689)
Unemployment Benefits (Fund 690)
Legal Services (Fund 691)
MISCELLANEOUS FUNDS
Heartland Bond (Fund 788)
OPEB Trust (Fund 789)
Pension Trust (Fund 792)
Fund Structure
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Description of Funds
Governmental Funds:
Governmental Funds are used to account for most governmental functions and focus on the near-term inflows and outflows of spendable resources.
General Fund (110) — This is the general operating fund for the City, utilized to account for all resources not required to be accounted for in another fund. This fund houses public service functions of the General fund and includes departments and divisions such as City Council, City Manager’s Office, City Clerk, Finance, City Treasurer, and Human Resources, Police, Fire, Parks, Library, Economic Development, Community Development, and Engineering.
General Fund — Measure U (115) — This is the general operating fund for Measure U. It is a 1% voter-approved general sales tax measure that is restricted solely to public safety by resolution.
Special Revenue Funds:
Special Revenue Funds are used to account for specific resources that are legally restricted to expenditure for particular purposes.
Public Safety/Towing (130) — This fund accounts for the financial transactions involving the use of monies collected for towing services as related to public safety.
Gas Tax (221) – Accounts for transactions as prescribed by the State of California statute on California Streets and Highways; including receipts under Streets and Highways Code Section 2105, 2106, 2107, 2107.5 and SB1.
Measure A (222) – Accounts for the use of Measure A tax monies for transit purposes.
Article 3 (223) – Accounts for the use of the Transportation Development Act Article 3 funds.
AQMD/Air Pollution Reduction (224) – Accounts for the financial transactions per Regulation 15 of the South Coast Air Quality Management District.
Lighting/Landscape Maintenance District (225) – Accounts for the financial transactions of the pre-prop 218 City-wide lighting and landscaping district established by City Council.
Post Proposition 218 Lighting District (227) – Accounts for the financial transactions of lighting districts voted by the citizens of those specified areas.
Post Proposition 218 Landscape District (228) – Accounts for the financial transactions of landscape districts voted in by the citizens of those specified areas.
Public Safety CFD (229) – Accounts for the financial transactions of lighting, landscape and maintenance of specific assessment area established by the City Council.
Asset Seizure (231) – Accounts for the financial transactions associated with assets seized in narcotics' investigations to be used for law enforcement purposes.
Public Safety Grants (232) – Accounts for financial transactions as prescribed by various State and Federal Public Safety Grants.
Public Safety CFD (234) – Accounts for the proceeds from the Public Safety Community Facilities District voted in by the citizens of those specific areas to be used specifically for public safety.
Citizen Option for Public Safety Programs (COPS) (236) – Accounts for financial transactions as prescribed by the State of California Grant under AB 3229.
Local Law Enforcement Block Grant (LLEBG) (237) – Accounts for financial transactions as prescribed by the U.S. Department of Justice Grant for Local Law.
Community Development Block Grant (CDBG) (240) – Accounts for the financial transactions as prescribed by the Federal Department of Housing and Urban Development for Community Development Block Grant Programs
General Plan (241) –Account for the financial resources received related to updating and maintaining the City’s general plan.
Fund Structure
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Home Investment Partnership (HOME) Program (242) – Accounts for the financial transactions of the federally funded HOME program as administered by the State of California’s Department of Housing and Community Development.
Housing Authority (244) – This fund accounts for the revenue received from the City’s affordable housing programs which facilitate housing development and affordable housing opportunities.
CAL HOME Program (245) – Accounts for the financial transactions of the State-funded program to replace and rehabilitate mobile homes.
2001-2008 HOME Program (246) – Accounts for the financial transactions of the federally funded HOME program as administered by the State of California Department of Housing and Community Development.
Neighborhood Stabilization Program Grant (247) – Accounts for the financial transactions as prescribed by the Federal Department of Housing and Urban Development for Neighborhood Stabilization Program Grants.
Sewer/Storm Drain (254) – This fund accounts for the sewer and storm drain fees for the City-wide program to maintain storm drains and sewer transmission lines. Revenues are intended to cover the maintenance costs for these lines.
Miscellaneous Grant (266) — This fund accounts for all other grant programs outside public safety and CDBG.
American Rescue Plan (270) – This fund accounts for the American Rescue Plan Act of 2021 to speed up the United States’ recovery from the economic and health effects of the COVID-19 pandemic and ongoing recession.
Capital Projects Funds:
Capital projects funds are used to account for financial resources used for the acquisition or construction of capital facilities. These include land, improvements to land, buildings and building improvements and infrastructure.
Public Meeting Facilities (315) – Accounts for the financial transactions for the public meeting facilities identified in the development impact fee report and funded through developer contributions.
General Facilities (316) – Accounts for the financial transactions for general facilities identified in the development impact fee report and funded through developer contributions.
Flood Control (326) – Accounts for the financial transactions for flood control improvements identified in the development impact fee report and funded through developer contributions.
Bridges/Streets/Traffic Facilities (329) – Accounts for the financial transactions for general facilities identified in the development impact fee report and funded through developer contributions.
Law Enforcement Facilities (331) – Accounts for the financial transactions for the purchase of equipment identified in the development impact fee report and funded through developer contributions.
Fire Facilities (332) – Accounts for the financial transactions for the purchase of equipment identified in the development impact fee report and funded through developer contributions.
Park Development (361) – Accounts for the financial transactions for park acquisitions and development identified in the development impact fee report and funded through developer contributions.
Valley Wide DVL Park (362) – Accounts for the financial transactions for development identified in the development impact fee report and funded through developer contributions.
Library Facilities (363) – Accounts for the financial transactions for expansion of library facilities identified in the development impact fee report and funded through developer contributions.
Capital Projects (370) – Accounts for the financial transactions for Capital Projects related to the General Fund or General Fund departments.
Equipment Replacement (380) – Accounts for accumulation of reserves for future replacement of rolling stock vehicles from other funds.
Permanent Funds:
A permanent fund is a fund where the principal fund may not be used and only earnings from the fund are used for the benefit of the government or its citizens.
Fund Structure
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LaSalle Library Endowment (160) – Accounts for an endowment given to the City of Hemet for the benefit of the Library. Only interest earned on the principal amount of $1,000,000 can be used for non-operating costs of the Library.
Fiduciary Funds:
Fiduciary Funds are used to account for assets that are held in trust for others. In other words, these are the funds that are held by the government as a trustee. They are held on behalf of others, and therefore, they cannot be used to fund the government's own expenses.
Private Purpose Trust Fund (396 and 496) – These funds are used to account for the balances and transactions of the Successor Agency to the former Hemet Redevelopment Agency.
Proprietary Funds:
Proprietary Funds are used to account for activities that involve business-like interactions, either within the government or outside of it. These activities are similar to what would be found in the private sector, so the reporting resembles what would be used by a private business.
Water Fund (571) — This fund accounts for the financial transactions of the City’s Water Utility Service, including water production, transmission, and distribution system.
Pension Trust Funds:
Pension trust funds are monies attributed to holding the contributions, income and assets of a retirement system.
OPEB Trust (789) — This fund was established to provide the City with a tool to set aside funds for future Other Post-Employment Benefit (OPEB) costs and liabilities for retirees.
Pension Section 115 Trust (792) — This fund was established to provide the City with a tool to set aside funds for future pension costs and liabilities.
Internal Service Funds:
Internal Service Funds primarily provide either benefits, goods or services to other funds, departments, or agencies of government on a cost-reimbursement basis.
Information Technology (680) — This fund was established to account for the City’s Information Technology activities. All software maintenance costs are housed under this fund and charged directly to the department who uses it. All other general IT costs, such as staffing, Internet, telephone, etc., are charged to departments using a cost allocation method. Departments are charged based on the percentage of total computers, printers, telephones, and voicemail lines within each department.
Workers’ Compensation (681) — This fund was established to manage workers' compensation insurance, claims, and administration. The annual cost of workers' compensation is charged to departments as a percentage of payroll.
Dental & Vision Insurance (682) — This fund was established to manage the City’s self-funded Dental and Vision plan available to employees.
Liability Insurance (683) — This fund was established to manage liability insurance, claims and administration of the program. The City is self-insured for the first $200,000 per incident. Coverage is provided through a joint powers authority. The annual cost is charged to departments a proportionate share of the Liability budget to fund the program.
Equipment Maintenance (684) — This fund was established to manage the equipment maintenance program which provides all City departments with cost-effective preventative maintenance and repair services of all City fleet vehicles and equipment.
Fund Structure
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Facilities Maintenance (685) — This fund was established to manage the cost of maintenance for all City buildings, including building repairs, janitorial services, elevator maintenance, underground tank maintenance and repairs, and traffic signal maintenance. Departments are charged a proportionate share of the cost to run the program and shares are based on each department’s square feet occupied.
Public Works Administration (686) — This fund was established to manage the administration of the Public Works divisions of Engineering, Parks, Steets, Sewer/Storm Drain, LLMD, Water, Equipment Maintenance, and Facility Maintenance.
Other Post-Employment Benefits OPEB (689) — This fund was established to manage the cost of Other PostEmployment Benefits (OPEB) for retirees. Costs include retiree medical, dental, and vision benefits as well as administration costs. Departments Citywide are charged a proportionate share of the cost of the program.
Unemployment Benefits (690) — This fund was established to manage the cost of unemployment claims and is self-funded. The City does not pay for unemployment insurance.
Legal Services (691) — This fund was established to manage the cost of providing legal services to all City Departments and their Divisions. Annual cost is charged to departments as a proportionate share of the cost of the program.
Fund Structure
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Financial Policies
An operational budget is a plan for the accomplishment of programs related to objectives and goals within a definite time period, including an estimate of resources required, together with an estimate of the resources available, usually compared with one or more past periods and showing future requirements.
The City of Hemet views the budget as a means of balancing revenues and expenditures by estimating revenues conservatively and by adjusting department budget requests accordingly. The City estimates revenues based on prior years' history and future projects that would bring in additional funds. The City staff is cognizant of the fact that revenues can be lean and budget their departmental expenditures accordingly. The City also tries to expend all current operating and capital operations out of current revenues.
An operational budget provides accountability and control over sources and uses by defining the budget in line item detail. It is a document of policy. City Council programs and policies along with departmental goals, objectives, accomplishments, and performance measures are the guides for departments to assess their performance.
These policies are then defined as dollar amounts in the areas of salaries, benefits, operations & materials, contractual services, debt service, capital outlay and capital project needs to accomplish these policies.
The budget document is designed to incorporate into the financial statements for ease of reporting in conformance with Generally Accepted Accounting Principles (GAAP).
Changes to the adopted budget can happen in two different ways. One is to make a request (usually an increase in expenditures) to the City Council. This is usually when a department is requesting a change in the total budget for that department. In this case, only the City Council can approve a budget adjustment. The other is to move budgeted amounts from one line item within a department, to another line item. If the total departmental amount does not change, the City Manager has the authority to approve this change.
The City Council requires the General Fund budget to be balanced. However, the City Council is not opposed to operating transfers for one-time projects or equipment purchases in the General Fund. Operating transfers are not to be used to balance the budget. The City Council is also not opposed to using reserves for items that the reserves were saved for in the first place. Capital Projects Funds and some Special Revenue Funds use fund balance to construct many of the projects being proposed in this budget. Many times, the reserves are "saved" over a period, so the project can be completed and paid for with cash.
The City has a formal reserve policy to ensure adequate fiscal responsibility and resources to assist the City in achieving the following objectives:
Build adequate reserves
Establish sound fiscal reserve policies
Help the City to achieve its short-term and long-term financial obligations Establish a periodic review of the City's fund balances and reserves Enhance the City's credit rating
Within this policy, the City will maintain spendable and unrestricted General Fund reserves equaling at least 40% of current expenditures.
Along with a reserve policy, the City has a 5-year Capital Improvement Program (CIP) that is established and updated with every budget to show which projects the City Council wants to be constructed, how it will be paid for and when it will be constructed. One of the reasons the CIP is created is to make sure there are adequate funds for the projects.
The CIP sets the goals and staff will make sure that the funds to implement the goals are placed in the budget.
Financial Policies
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Policy Links:
Accounting Policies
Reserve Requirement Ordinance 2016
Financial Policies
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Executive Summary
The Fiscal Year 2026-27 Budget reflects the City of Hemet's commitment to balancing fiscal responsibility with strategic investment in community priorities. The budget addresses significant financial challenges, including continued volatility in liability insurance costs, inflationary pressures, and structural budget imbalances, while preserving essential public services and maintaining long-term financial sustainability.
Through conservative revenue assumptions, expenditure reductions, strategic vacancy management, and diversified revenue initiatives, the City continues to protect its financial position and maintain its ability to deliver high-quality services. The City Council's decision to increase the General Fund Economic Reserve requirement from 20 percent to 40 percent reflects a proactive commitment to fiscal resiliency. While some may view this reserve level as substantial, the approximately $28.9 million reserve balance as of June 30, 2025, has proven to be a prudent safeguard against unforeseen liabilities, economic downturns, and market volatility.
The budget also advances investments in public safety, economic development, infrastructure improvements, and community engagement initiatives that support the City's long-term vision and strategic goals with the use of onetime fund balance measures.
The sections that follow provide detailed information regarding the City's financial condition, strategic priorities, departmental operations, capital investments, and long-range financial planning initiatives that collectively guide the City's path toward fiscal resilience and continued community prosperity.
Executive Summary
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All Funds Summary with Fund Balance
Estimates
Summary Charts
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Summary Charts
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General Fund Revenues and Expenditures
Summary Charts
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General Fund Revenues and Expenditures
(con't)
Summary Charts
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Summary Charts
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Strategic Plan
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MISSION STATEMENT
The City of Hemet will be a destination of opportunity and empowerment for its residents, businesses, and visitors by capitalizing opportunity, striving for growth, and promoting diversity and respect for each member of our community.
OUR VISION
The City of Hemet shall be a model of excellence in local government; a safe, well-planned community with equal opportunity for all.
VALUES
We believe in an open, honest, and representative form of democracy.
We are dedicated to the highest ideals of honor and integrity in order to merit the respect, trust and confidence of the citizens of Hemet.
We believe our primary responsibility is to those who live, work, visit or otherwise come in contact with our City.
We are committed to enhancing the quality of life by providing exemplary services.
We believe that the employees of the City are an important resource, and through them our mission and vision will be accomplished. We will support them with dignity, respect, and fairness.
GOALS
To improve the quality of life by addressing the root causes of crime.
To promote economic development that increases citizen
access to quality jobs and shopping experiences while increasing the City’s tax base.
To manage the City’s growth by protecting and preserving the environment and maximizing the use of public infrastructure.
To improve the City’s image by preserving and enhancing the community’s aesthetic beauty and natural assets and by building upon the rich and diverse cultural heritage of the community.
To support the success of the community by maximizing our resources to provide the greatest possible benefit for the citizens of the City of Hemet.
Strategic Plan
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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
Discussion of Fiscal Year 2026-27 Action Items
The proposed FY 2026–27 Strategic Plan Action Item list includes a total of 31 Action Items, comprised of 26 new initiatives and five items carried forward from FY 2025–26 and has been updated with direction from the City Council meeting on May 12, 2026.
Quarterly updates and more information can be found here.
Strategic Plan
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Strategic Plan
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Priorities & Issues
One of the most significant challenges facing the City over the past several years has been the extreme volatility in its liability insurance environment. During Fiscal Year 2025-26 and continuing into Fiscal Year 2026-27, the City experienced unprecedented changes to its insurance programs that substantially impacted its financial outlook and operational planning.
In December 2023, the City was notified by its insurance pool carrier, the California Joint Powers Insurance Authority (CJPIA), that its self-insured retention (SIR) would increase from $250,000 to $1,000,000 per occurrence effective January 1, 2024. The increase was attributed to a significant rise in use-of-force claims and the resulting increase in overall pool member premiums. Just a few months later, in March 2024, CJPIA informed the City that it would no longer extend membership for any of its insurance programs, including liability, workers' compensation, property, cyber, and pollution coverage.
Faced with the potential loss of all insurance coverage, City staff, with the assistance of its brokerage partner, Alliant Insurance Services, successfully secured replacement coverage effective July 1, 2024. The City has since established a strong and productive partnership with Alliant, whose expertise has been instrumental in navigating an increasingly challenging insurance marketplace.
The City was accepted into the Public Risk Innovation, Solutions, and Management (PRISM) program for workers' compensation, property, cyber, and pollution coverage. Having previously maintained a long-standing relationship with PRISM, formerly known as the California State Association of Counties Excess Insurance Authority (CSAC-EIA), the transition back to the pool has been seamless and continues to provide stability for these insurance programs.
Liability insurance, however, remains one of the City's most significant financial challenges. The City now receives coverage through multiple layers of insurance at substantially increased costs. For Fiscal Year 2026-27, liability insurance premiums are budgeted at approximately $7.0 million, in addition to a $2.0 million self-insured retention for claims. This represents an increase of approximately 4.9 percent over Fiscal Year 2025-26 and continues a trend of significant cost escalation experienced over the past several years. These rapidly increasing insurance costs have materially impacted the City's ability to deploy strategic investments and have created a critical need to reduce operational expenditures and preserve financial flexibility.
Recognizing the importance of addressing the underlying causes of liability exposure, the City has implemented several risk mitigation initiatives. The Police Department has invested in new and enhanced technology, improved operational processes and procedures, and expanded training opportunities for personnel. These efforts are designed to improve accountability, enhance service delivery, reduce risk exposure, and ultimately decrease the frequency and severity of claims.
Looking forward, one of the City's highest organizational priorities will be the continued reduction and management of liability exposure across all areas of operation. The City remains committed to strengthening internal controls, enhancing employee training, implementing best practices, and fostering a culture of accountability and risk management. Stabilizing liability claims and reducing insurance-related costs are essential to preserving the City's long-term financial sustainability and restoring its capacity to invest in critical infrastructure, public services, and community priorities.
Priorities and Issues
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Short-term Factors
The City of Hemet experienced significant growth in its General Fund balance over the past several years. Between Fiscal Year 2018 and Fiscal Year 2024, the General Fund balance increased from $16,695,812 to $71,990,261. This growth was driven by several factors, including unprecedented increases in sales tax revenues during and following the COVID-19 pandemic, elevated vacancy rates resulting from recruitment challenges, and higher interest earnings generated by rising cash balances and favorable market conditions.
Recognizing the importance of maintaining long-term financial stability, the City Council approved an increase to the City's Economic Uncertainty Reserve from 20 percent to 40 percent of annual General Fund operating expenditures beginning in Fiscal Year 2023-24. While some may perceive this reserve level as excessive, it has proven to be a prudent and responsible financial strategy. As of June 30, 2025, the reserve totaled approximately $28.9 million and serves as a critical safeguard against economic downturns, unforeseen emergencies, escalating costs, and revenue volatility.
Since establishing the enhanced reserve policy, the City has strategically invested in its workforce by bringing employee compensation to market levels, allowing the City to improve recruitment and retention efforts and better compete for qualified talent. The City has also made several one-time investments in infrastructure improvements and community enhancements that improve quality of life and support long-term economic development. At the same time, the City has experienced significant increases in liability insurance premiums, creating additional pressure on available fund balance and ongoing operating resources.
Short-Term Organization Factors
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As revenues have begun to flatten while expenditures continue to rise due to inflationary pressures, personnel costs, insurance increases, and contractual obligations, the City has proactively implemented several cost-containment measures to preserve financial stability heading into Fiscal Year 2026-27. These measures include implementing a hiring freeze on vacant positions, limiting recruitment efforts to mission-critical and revenue-generating positions as vacancies occur, and requiring all departments to reduce maintenance and operations expenditures by 10 percent.
These actions reflect the City's commitment to balancing service delivery with fiscal responsibility while preserving fund balance and positioning the organization to address future financial challenges.
In Fiscal Year 2026-27, the City proposes to invest funds using the General Fund balance for the following:
Downtown parking lot repavement $250,000
Truck routing ordinance $200,000
Motorola portable radios (AMR fee funded) $160,000
Storage relocation and demolition $100,000
City branding initiatives $100,000
Christmas decorations $100,000
Inclusionary housing ordinance $100,000
New building personnel vehicle with upfitting and supplies $88,000 PEG funded technology enhancements $70,000
Prehospital Blood Infusion Program (AMR fee funded) $65,000 General Fund Total $1,233,000
In Fiscal Year 2026-27, the City proposes to invest funds using the Measure U General Fund balance for the following:
Retiring Police personnel with payouts $1,500,000
Contribution towards liability insurance premium $1,500,000 Police interceptors with upfitting (4) $342,000
Harris XG-100 radios (50) $309,000
Enterprise Master Fleet Program $160,000
Traffic motorcycles with upfitting (2) $116,000
Installation of surveillance cameras for GTF and PACT buildings $115,000 Thermal imaging cameras $70,000
Fire Station 5 enhancements $60,000
Fire hose replacements $40,000
Measure U Total $4,537,000
Short-Term Organization Factors
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Long Range Financial Plans
The City of Hemet remains committed to a long-term financial strategy that emphasizes fiscal sustainability, economic diversification, and the creation of stable and resilient revenue streams. Recognizing that traditional revenue sources such as sales and property taxes are susceptible to economic fluctuations, the City has strategically embraced a multifaceted approach to financial planning that balances current service demands with future community investments.
A key component of the City's long-range strategy is the establishment of revenue-sharing agreements with automobile dealerships. By leveraging Hemet's strong commercial and automotive sectors, these partnerships generate recurring revenues that support municipal operations, strengthen essential public services, and provide additional resources for infrastructure improvements and community enhancements. These agreements also position the City to benefit from continued commercial growth and consumer activity within the region.
The City is also pursuing innovative revenue opportunities through the integration of digital billboard programs. These high-visibility advertising platforms are anticipated to generate new and diversified revenue streams while simultaneously promoting the unique attractions, events, and amenities that make Hemet a desirable place to live, work, and visit. In particular, the digital billboard program provides an opportunity to showcase community assets such as the Ramona Pageant, enhancing tourism, increasing regional visibility, and reinforcing the City's cultural identity.
Additionally, the City has taken an approach by integrating cannabis-related revenues into its long-range financial framework. As the legal cannabis industry continues to mature, the City is strategically positioning itself to capture new economic opportunities through carefully regulated business activity and associated tax revenues. These revenues are anticipated to support municipal services, contribute to economic development initiatives, and provide additional flexibility to address future community needs.
Collectively, these diversified and resourceful revenue strategies strengthen the City's financial foundation and reduce reliance on any single source of income. By proactively pursuing economic opportunities, maintaining prudent reserve policies, and identifying innovative revenue solutions, the City of Hemet is better positioned to invest in public safety, infrastructure, economic development, and quality-of-life improvements. These long-range financial initiatives reflect the City's commitment to responsible stewardship, fiscal resilience, and the creation of a sustainable and prosperous future for the Hemet community.
Long Range Financial Plans
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Budgeted Positions
From the adopted budget for fiscal year 2025-26 to the proposed budget for fiscal year 2026-27, city-wide positions decreased by 8.5 full-time equivalent employees, which consists of the following combination:
Added Positions +11.5 FTE
+1 Senior Plans Examiner (In lieu of consultants — Community Development Department) +1 Building Inspector II (In lieu of consultants — Community Development Department) +1 Building Technician I (In lieu of consultants — Community Development Department) +1 Administrative Assistant (Community Development Department) +2 Public Safety Dispatch Supervisors (AB 645 Requirement - Police Department) +2 Public Safety Dispatchers (Canyon Lake Service Agreement - Police Department) +1 Network Systems Administrator (Administrative Services Department) +1 Human Resources Analyst (Administrative Services Department) +1 Maintenance Worker I PT (Public Works)
+0.5 Office Specialist II PT (Public Works)
Frozen Positions -17 FTE
-1 Office Specialist Confidential (City Clerk Department) -1 Housing Specialist (Community Development Department) -1 Office Specialist III (Community Development Department) -1 Deputy Fire Chief (Fire Department)
-1 Emergency Services Coordinator (Fire Department)
-1 Public Safety Operator (Fire Department)
-0.5 Library Page (Library)
-6 Police Officers (Police Department)
-1 Community Services Officer (Police Department)
-1 Outreach and Engagement Specialist (Police Department) -0.5 Civilian Investigator (Police Department)
-1 Human Resources Technician (Administrative Services Department) -1 Senior Engineering Technician (Public Works)
Adjusted Positions -3 FTE
-3 Fire Captains (Fire Department)
-3 Fire Engineers (Fire Department)
+3 Firefighters (Fire Department)
Budgeted Positions
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18.D.
Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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Budgeted Positions
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18.D.
Fund Summary Overview
The City's accounting records are organized on the basis of funds. Each fund is a separate accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures.
Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
The City uses separate funds to account for its operations and the various funding sources that support operations.
General Funds: The General Fund provides for primary public service needs of the city, including public safety, community development, public works, community services, and general government. The General Fund is used to account for all transactions that are not accounted for in another fund. Measure U revenue and expenditures are also included in the General Fund.
Special Revenue Funds: Special Revenue Funds are established to account for revenues from specific taxes or other earmarked revenue sources that, by law, are designated to finance particular functions or activities. Examples of special revenue funds are Gas Tax, Lighting and Landscape Maintenance Districts, housing and grants.
Fiduciary Funds: Fiduciary funds are used if the city has a fiduciary or custodial responsibility for assets. The City currently budgets for two fiduciary funds related to the Successor Agency to the former Hemet Redevelopment Agency.
Enterprise Funds: The City of Hemet operates one Enterprise Fund (Water), which is used to account for operations that are financed and operated in a manner similar to private businesses, where the costs of services are primarily recovered through user fees.
Internal Service Funds: The City of Hemet operates several Internal Service Funds to support citywide operations through centralized services and cost recovery from user departments. These funds include Liability/Risk Management, Legal Services, Facilities Maintenance, Fleet Maintenance, and Information Technology.
Funds Summary Overview
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18.D.
All Funds Summary
All Funds Summary includes General Fund, Special Revenue Funds, Development Impact Funds (DIF), Water Enterprise Fund, Internal Service Funds (ISF), and other minor funds.
Summary
Revenues vs Expenditures Summary
Revenues by Fund
Revenues are the flow of funds coming into the City of Hemet to cover the overall cost of operations. In establishing revenue projections, city staff work closely with HdL who is an outside vendor that performs audit and analysis consulting services for property and sales tax forecasting. Additionally, five-year financial trends are analyzed along with anticipated developments within the City that will impact service fee collection.
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2023 2024 2025 2026 2027
0 $50M
$100M
$150M
$200M
All Funds Summary
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18.D.
Historical Revenue by Fund
HOME PROGRAM NSP GRANT HOUSING AUTHORITY
PUBLIC MEETING FACILITIES ASSET SEIZURE UNEMPLOYMENT BENEFITS LASALLE ENDOWMENT ARTICLE 3 / SB 821 RDA RETIREMENT OBLIGATION
PUBLIC SAFETY/TOWING VALLEY WIDE DVL PARK GENERAL PLAN
AIR POLLUTION REDUCTION LAW ENFORCEMENT FACILITIES CAPITAL PROJECTS FUND PUBLIC WORKS CFD LIBRARY FACILITIES POST PROP-218 LIGHTING FUND COPS FUNDING/AB 3229 GENERAL FACILITIES FIRE FACILITIES DENTAL & VISION INSURANCE ATP GRANT PENSION SECTION 115 TRUST
OPEB TRUST REDEVELOPMENT OBLIGATION
RTRMT
MISCELLANEOUS GRANTS
PARK DEVELOPMENT HEARTLAND 2006 REFUNDING LEGAL SERVICES
FLOOD CONTROL PUBLIC SAFETY GRANTS COMMUNITY DEVELOPMENT (CDBG)
EQUIPMENT REPLACEMENT L&LMD PUBLIC SAFETY CFD
POST PROP-218 LANDSCAPE FUND BRIDGES/STREETS/TRAFFIC FACIL PW ADMINISTRATION
WORKERS COMPENSATION ADMIN FLEET MAINTENANCE INFORMATION TECHNOLOGY
FACILITY MAINTENANCE MEASURE A TAXES AMERICAN RESCUE PLAN
OPEB-OTHER POST EMPLOYMENT
BEN
GAS TAX SEWER & STORM DRAIN
LIABILITY INSURANCE PUBLIC WATER UTILITY MEASURE U
GENERAL
$$114433MM $151M
$$116633MM
$$114499MM $151M
FY2023 FY2024 FY2025 FY2026 FY2027
-$50M
0 $50M
$100M
$150M
$200M
All Funds Summary
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18.D.
FY27 Revenues by Fund
GENERAL $69,550,000 46.07%
MEASURE U $16,985,000 11.25%
PUBLIC WATER UTILITY $15,800,000 10.47%
LIABILITY INSURANCE $10,680,000 7.07%
GAS TAX $5,122,000 3.39%
SEWER & STORM DRAIN $5,045,000 3.34%
OPEB-OTHER POST
EMPLOYMENT BEN
$4,075,000 2.70%
INFORMATION TECHNOLOGY $3,040,000 2.01%
MEASURE A TAXES $2,950,000 1.95%
FACILITY MAINTENANCE $2,773,000 1.84%
PW ADMINISTRATION $2,384,000 1.58%
FLEET MAINTENANCE $2,219,000 1.47%
WORKERS COMPENSATION
ADMIN
$1,425,000 0.94%
PUBLIC SAFETY CFD $1,255,000 0.83%
COMMUNITY DEVELOPMENT
(CDBG)
$924,303 0.61%
BRIDGES/STREETS/TRAFFIC
FACIL
$835,000 0.55%
HEARTLAND 2006 REFUNDING $800,000 0.53%
LEGAL SERVICES $735,000 0.49%
OPEB TRUST $650,000 0.43%
FLOOD CONTROL $530,000 0.35%
DENTAL & VISION INSURANCE $515,000 0.34%
PARK DEVELOPMENT $428,000 0.28%
EQUIPMENT REPLACEMENT $375,000 0.25%
FIRE FACILITIES $364,000 0.24%
LIBRARY FACILITIES $283,000 0.19%
COPS FUNDING/AB 3229 $250,000 0.17%
GENERAL FACILITIES $200,000 0.13%
AIR POLLUTION REDUCTION $130,000 0.09%
PUBLIC SAFETY/TOWING $125,000 0.08%
LAW ENFORCEMENT FACILITIES $115,000 0.08%
L&LMD $105,000 0.07%
PENSION SECTION 115 TRUST $90,000 0.06%
GENERAL PLAN $85,000 0.06%
VALLEY WIDE DVL PARK $83,000 0.05%
UNEMPLOYMENT BENEFITS $25,000 0.02%
ASSET SEIZURE $7,000 0.00%
151M
All Funds Summary
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18.D.
PUBLIC MEETING FACILITIES $6,000 0.00%
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
GENERAL $68,363,707.50 $41,702,049.95 $69,550,000.00 1.74% MEASURE U $16,184,000.00 $10,731,379.46 $16,985,000.00 4.95% PUBLIC
SAFETY/TOWING
$70,000.00 $136,111.00 $125,000.00 78.57%
LASALLE
ENDOWMENT
$61,186.08
GAS TAX $4,860,000.00 $3,791,886.98 $5,122,000.00 5.39% MEASURE A TAXES $2,695,000.00 $1,690,790.32 $2,950,000.00 9.46%
AIR POLLUTION
REDUCTION
$122,000.00 $59,927.01 $130,000.00 6.56%
L&LMD $165,000.00 $1,248,665.32 $105,000.00 -36.36%
POST PROP-218
LIGHTING FUND
$213,538.86
POST PROP-218
LANDSCAPE FUND
$1,228,141.58
PUBLICWORKS CFD $414,562.80
ASSET SEIZURE $7,000.00
PUBLIC SAFETY
GRANTS
$149,014.00 $1,187,593.68 -100.00%
PUBLIC SAFETY CFD $1,003,000.00 $815,729.29 $1,255,000.00 25.12%
COPS FUNDING/AB
3229
$250,000.00 -$95.55 $250,000.00
COMMUNITY
DEVELOPMENT
(CDBG)
$885,000.00 $104,929.38 $924,303.00 4.44%
GENERAL PLAN $102,000.00 $8,157.03 $85,000.00 -16.67%
SEWER & STORM
DRAIN
$4,800,000.00 $3,594,783.56 $5,045,000.00 5.10%
MISCELLANEOUS
GRANTS
$549,184.35
PUBLIC MEETING
FACILITIES
$6,000.00
GENERAL FACILITIES $370,000.00 $21,208.27 $200,000.00 -45.95% FLOOD CONTROL $905,000.00 $73,003.04 $530,000.00 -41.44%
BRIDGES/STREETS/TR
AFFIC FACIL
$1,255,000.00 $80,156.41 $835,000.00 -33.47%
LAWENFORCEMENT
FACILITIES
$170,000.00 $12,806.53 $115,000.00 -32.35%
FIRE FACILITIES $295,000.00 $15,394.45 $364,000.00 23.39% PARK DEVELOPMENT $690,000.00 $47,485.01 $428,000.00 -37.97%
VALLEYWIDE DVL
PARK
$90,000.00 $7,839.10 $83,000.00 -7.78%
LIBRARY FACILITIES $255,000.00 $19,984.72 $283,000.00 10.98%
EQUIPMENT
REPLACEMENT
$294,000.00 $185,534.00 $375,000.00 27.55%
Revenues by Fund
All Funds Summary
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18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
REDEVELOPMENT
OBLIGATION RTRMT
$917,112.94
PUBLICWATER
UTILITY
$15,030,000.00 $11,384,454.45 $15,800,000.00 5.12%
INFORMATION
TECHNOLOGY
$1,946,000.00 $1,621,683.10 $3,040,000.00 56.22%
WORKERS
COMPENSATION
ADMIN
$1,341,000.00 $1,144,089.08 $1,425,000.00 6.26%
DENTAL & VISION
INSURANCE
$350,000.00 $300,646.67 $515,000.00 47.14%
LIABILITY INSURANCE $12,015,300.00 $9,022,177.41 $10,680,000.00 -11.11% FLEET MAINTENANCE $2,090,000.00 $1,764,618.92 $2,219,000.00 6.17%
FACILITY
MAINTENANCE
$2,655,000.00 $2,212,510.00 $2,773,000.00 4.44%
PWADMINISTRATION $2,294,000.00 $1,838,340.00 $2,384,000.00 3.92%
OPEB-OTHER POST
EMPLOYMENT BEN
$4,130,000.00 $3,460,295.40 $4,075,000.00 -1.33%
UNEMPLOYMENT
BENEFITS
$25,000.00 $22,913.00 $25,000.00
LEGAL SERVICES $735,000.00 $612,490.00 $735,000.00
HEARTLAND 2006
REFUNDING
$777,000.00 $444,663.71 $800,000.00 2.96%
OPEB TRUST $225,000.00 $685,647.62 $650,000.00 188.89%
PENSION SECTION 115
TRUST
$1,496,000.00 $1,703,877.76 $90,000.00 -93.98%
Total Revenues $149,082,021.50 $105,137,452.69 $150,963,303.00 1.26% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
All Funds Summary
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18.D.
Revenues by Revenue Source
Historical Revenue by Revenue Source
Fines & Forfeitures Other Non-Operating Licenses & Permits Use of Money & Property Charges for Services Utility Charges for Services Intergovernmental Misc. Taxes
FY27 Revenues by Revenue Source
Taxes $59,892,600 39.67%
Misc. $43,573,700 28.86%
Intergovernmental $19,341,303 12.81%
Utility Charges for Services $12,691,300 8.41%
Charges for Services $7,035,900 4.66%
Use of Money & Property $5,490,900 3.64%
Licenses & Permits $2,569,500 1.70%
Fines & Forfeitures $218,100 0.14%
Other Non-Operating $150,000 0.10%
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
Taxes $56,966,500.00 $41,498,751.42 $59,892,600.00 5.14% Licenses & Permits $4,799,100.00 $1,888,746.61 $2,569,500.00 -46.46% Fines & Forfeitures $181,700.00 $166,478.21 $218,100.00 20.03% $143M
$$115511MM
$$116633MM
$$114499MM $$115511MM
FY2023 FY2024 FY2025 FY2026 FY2027
0 $50M
$100M
$150M
$200M
151M
Revenues by Revenue Source
All Funds Summary
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18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
Use of Money &
Property
$4,640,000.00 $902,464.89 $5,490,900.00 18.34%
Intergovernmental $17,878,721.50 $12,198,036.97 $19,341,303.00 8.18% Charges for Services $8,858,700.00 $3,704,827.85 $7,035,900.00 -20.58% Misc. $43,342,300.00 $35,896,836.55 $43,573,700.00 0.53% Utility Charges for
Services
$12,210,200.00 $8,864,640.19 $12,691,300.00 3.94%
Other Non-Operating $204,800.00 $16,670.00 $150,000.00 -26.76% Total Revenues $149,082,021.50 $105,137,452.69 $150,963,303.00 1.26% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
Expenditures by Fund
Expenditures are the flow of funds going out of the City of Hemet to cover the overall cost of servicing the community.
In establishing expenditures, Staff analyze five-year financial trends and external reports from local government sources such as the California Local Government Finance Almanac, the California Society of Municipal Finance Officers and the League of California Cities.
All Funds Summary
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18.D.
Historical Expenditures by Fund
CALHOME GRANT HOME - PROGRAM INCOME PUBLIC MEETING FACILITIES LAW ENFORCEMENT FACILITIES VALLEY WIDE DVL PARK PENSION SECTION 115 TRUST
HOME PROGRAM OPEB TRUST LASALLE ENDOWMENT
UNEMPLOYMENT BENEFITS ARTICLE 3 / SB 821 FIRE FACILITIES
PUBLIC SAFETY/TOWING FLOOD CONTROL GENERAL PLAN
GENERAL FACILITIES RDA RETIREMENT OBLIGATION PARK DEVELOPMENT PUBLIC WORKS CFD COPS FUNDING/AB 3229 LIBRARY FACILITIES POST PROP-218 LIGHTING FUND AIR POLLUTION REDUCTION BRIDGES/STREETS/TRAFFIC FACIL DENTAL & VISION INSURANCE ATP GRANT SB1 RMRA
REDEVELOPMENT OBLIGATION
RTRMT
CAPITAL PROJECTS FUND MISCELLANEOUS GRANTS
HEARTLAND 2006 REFUNDING COMMUNITY DEVELOPMENT
(CDBG)
LEGAL SERVICES
EQUIPMENT REPLACEMENT PUBLIC SAFETY GRANTS PUBLIC SAFETY CFD PW ADMINISTRATION L&LMD POST PROP-218 LANDSCAPE FUND
WORKERS COMPENSATION ADMIN FLEET MAINTENANCE MEASURE A TAXES
INFORMATION TECHNOLOGY FACILITY MAINTENANCE AMERICAN RESCUE PLAN
GAS TAX OPEB-OTHER POST EMPLOYMENT
BEN
SEWER & STORM DRAIN
LIABILITY INSURANCE PUBLIC WATER UTILITY MEASURE U
GENERAL
$116M
$$113333MM
$$116644MM $$116622MM $$115555MM
FY2023 FY2024 FY2025 FY2026 FY2027
-$50M
0 $50M
$100M
$150M
$200M
All Funds Summary
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18.D.
FY27 Expenditures by Fund
GENERAL $74,923,000 48.46%
MEASURE U $21,406,000 13.85%
PUBLIC WATER UTILITY $13,732,000 8.88%
LIABILITY INSURANCE $10,680,000 6.91%
OPEB-OTHER POST
EMPLOYMENT BEN
$4,700,000 3.04%
SEWER & STORM DRAIN $3,458,000 2.24%
INFORMATION TECHNOLOGY $3,046,000 1.97%
FACILITY MAINTENANCE $2,773,000 1.79%
PW ADMINISTRATION $2,384,000 1.54%
GAS TAX $2,242,000 1.45%
FLEET MAINTENANCE $2,219,000 1.44%
WORKERS COMPENSATION
ADMIN
$1,800,000 1.16%
EQUIPMENT REPLACEMENT $1,682,000 1.09%
LEGAL SERVICES $1,500,000 0.97%
PUBLIC SAFETY CFD $1,244,000 0.80%
POST PROP-218 LANDSCAPE
FUND
$1,023,000 0.66%
COMMUNITY DEVELOPMENT
(CDBG)
$924,303 0.60%
REDEVELOPMENT OBLIGATION
RTRMT
$888,000 0.57%
L&LMD $793,000 0.51%
HEARTLAND 2006 REFUNDING $757,000 0.49%
DENTAL & VISION INSURANCE $515,000 0.33%
AIR POLLUTION REDUCTION $412,000 0.27%
PUBLIC WORKS CFD $260,000 0.17%
PARK DEVELOPMENT $250,000 0.16%
FIRE FACILITIES $230,000 0.15%
LIBRARY FACILITIES $202,000 0.13%
GENERAL FACILITIES $200,000 0.13%
RDA RETIREMENT OBLIGATION $125,000 0.08%
PUBLIC SAFETY/TOWING $120,000 0.08%
POST PROP-218 LIGHTING FUND $58,000 0.04%
UNEMPLOYMENT BENEFITS $25,000 0.02%
LASALLE ENDOWMENT $25,000 0.02%
155M
All Funds Summary
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18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
GENERAL $77,047,897.96 $68,374,803.46 $74,923,000.00 -2.76% MEASURE U $17,825,907.84 $15,032,444.81 $21,406,000.00 20.08% PUBLIC
SAFETY/TOWING
$70,000.00 $103,254.45 $120,000.00 71.43%
LASALLE
ENDOWMENT
$21,000.00 $11,264.86 $25,000.00 19.05%
GAS TAX $2,292,000.00 $2,798,828.05 $2,242,000.00 -2.18% MEASURE A TAXES $2,650,000.00 $4,609,383.65 -100.00%
ARTICLE 3 / SB 821 $535,355.35
AIR POLLUTION
REDUCTION
$11,000.00 $11,000.00 $412,000.00 3,645.45%
L&LMD $1,851,611.00 $1,464,481.46 $793,000.00 -57.17%
POST PROP-218
LIGHTING FUND
$452,180.00 $146,178.38 $58,000.00 -87.17%
POST PROP-218
LANDSCAPE FUND
$2,208,228.00 $1,571,840.09 $1,023,000.00 -53.67%
PUBLICWORKS CFD $146,200.00 $185,023.00 $260,000.00 77.84%
PUBLIC SAFETY
GRANTS
$149,014.00 $3,008,405.58 -100.00%
PUBLIC SAFETY CFD $1,171,000.00 $1,180,703.05 $1,244,000.00 6.23%
COPS FUNDING/AB
3229
$129,164.29
COMMUNITY
DEVELOPMENT
(CDBG)
$885,000.00 $154,801.13 $924,303.00 4.44%
GENERAL PLAN $500,000.00 -100.00%
SEWER & STORM
DRAIN
$5,742,000.00 $4,339,326.02 $3,458,000.00 -39.78%
MISCELLANEOUS
GRANTS
$1,149,009.48
AMERICAN RESCUE
PLAN
$1,184,572.63
GENERAL FACILITIES $82,500.00 $177,165.99 $200,000.00 142.42% FLOOD CONTROL $168,449.53
BRIDGES/STREETS/TR
AFFIC FACIL
$44,466.00 $165,377.33 -100.00%
FIRE FACILITIES $230,000.00
PARK DEVELOPMENT $48,849.73 $250,000.00
LIBRARY FACILITIES $529,000.00 $209,805.15 $202,000.00 -61.81%
CAPITAL PROJECTS
FUND
$217,443.14
EQUIPMENT
REPLACEMENT
$340,000.00 $936,092.81 $1,682,000.00 394.71%
RDA RETIREMENT
OBLIGATION
$125,000.00 $11,141.25 $125,000.00
REDEVELOPMENT
OBLIGATION RTRMT
$880,900.00 $880,515.26 $888,000.00 0.81%
Expenditures by Fund
All Funds Summary
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18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
PUBLICWATER
UTILITY
$14,601,000.00 $12,825,493.85 $13,732,000.00 -5.95%
INFORMATION
TECHNOLOGY
$2,446,000.00 $2,080,766.28 $3,046,000.00 24.53%
WORKERS
COMPENSATION
ADMIN
$1,841,000.00 $2,064,708.88 $1,800,000.00 -2.23%
DENTAL & VISION
INSURANCE
$350,000.00 $399,131.87 $515,000.00 47.14%
LIABILITY INSURANCE $12,015,300.00 $10,206,661.67 $10,680,000.00 -11.11% FLEET MAINTENANCE $2,099,000.00 $1,689,426.22 $2,219,000.00 5.72%
FACILITY
MAINTENANCE
$2,721,000.00 $2,157,950.42 $2,773,000.00 1.91%
PWADMINISTRATION $2,294,000.00 $2,029,528.78 $2,384,000.00 3.92%
OPEB-OTHER POST
EMPLOYMENT BEN
$4,730,000.00 $3,704,017.99 $4,700,000.00 -0.63%
UNEMPLOYMENT
BENEFITS
$25,000.00 $9,916.00 $25,000.00
LEGAL SERVICES $1,235,000.00 $971,560.60 $1,500,000.00 21.46% HEARTLAND 2006
REFUNDING
$758,000.00 $16,015.77 $757,000.00 -0.13%
OPEB TRUST $19,029.77
PENSION SECTION 115
TRUST
$8,321.92
SB1 RMRA $2,352,469.00 $37,006.75 -100.00%
Total Expenditures $162,492,673.80 $147,024,216.70 $154,596,303.00 -4.86% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
Expenditures by Object Summary
Historical Expenditures by Object Summary
Other Non-Operating Expend Transfers Out Debt Service
Capital Outlay Internal Service Charges Operating Supplies & Services Salaries & Fringe Benefits
$116M
$$113333MM
$$116644MM $$116622MM $$115555MM
FY2023 FY2024 FY2025 FY2026 FY2027
0 $50M
$100M
$150M
$200M
All Funds Summary
FY2627 Operating Budget CM Recommended | Hemet Page 89 of 345 Page 72
18.D.
FY27 Expenditures by Object Summary
Salaries & Fringe Benefits $74,649,100 48.29%
Operating Supplies & Services $41,695,000 26.97%
Internal Service Charges $30,026,000 19.42%
Capital Outlay $5,385,503 3.48%
Debt Service $1,890,700 1.22%
Other Non-Operating Expend $800,000 0.52%
Transfers Out $150,000 0.10%
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
Salaries & Fringe
Benefits
$72,631,934.67 $67,925,862.03 $74,649,100.00 2.78%
Operating Supplies &
Services
$47,386,043.02 $37,944,977.23 $41,695,000.00 -12.01%
Internal Service
Charges
$28,040,300.00 $23,366,920.00 $30,026,000.00 7.08%
Debt Service $1,884,700.00 $1,043,521.52 $1,890,700.00 0.32% Transfers Out $200,000.00 $16,670.00 $150,000.00 -25.00% Other Non-Operating
Expend
$789,122.00 $25,978.26 $800,000.00 1.38%
Capital Outlay $11,560,574.11 $16,700,287.66 $5,385,503.00 -53.41% Total Expenditures $162,492,673.80 $147,024,216.70 $154,596,303.00 -4.86% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026. 155M
Expenditures by Object Summary
All Funds Summary
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18.D.
General Fund
The General Fund is considered the main operating fund for the City of Hemet. Financial resources that are not restricted to a special purpose are accounted for within this fund. The General Fund provides the resources needed to provide day-to-day activities and pay for all administrative and operating expenditures. Public Safety, Library Services, Community Development, Economic Development, and City Administration are just a few of the functions funded by the General Fund.
Summary
Revenues vs Expenditures Summary
In the 2027 budget for the General Fund, expenditures are budgeted at $96.3 million, representing a 1.53% increase from the 2026 budgeted expenditures of $94.9 million.
Revenues for 2027 are budgeted at $86.5 million, which is a 2.35% increase compared to the 2026 budgeted revenues of $84.5 million. This continues the upward trend in revenue growth, although at a slightly lower rate than the 5.26% increase seen in the prior period.
Overall, the 2027 budget shows moderate growth in both revenues and expenditures compared to 2026, with expenditures increasing at a slightly higher rate than revenues.
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2023 2024 2025 2026 2027
0 $25M
$50M
$75M
$100M
$125M
General Fund
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18.D.
Revenues by Fund
The City of Hemet’s General Fund consists of two separate funds: Fund 110 (General Fund) and Fund 115 (Measure U).
Fund 110 supports the operations of the City Council, City Manager, City Clerk, City Treasurer, Administrative Services, Police, Fire, Library, Community Development, and Public Works (Engineering and Park Maintenance). Fund 115 accounts for revenues and expenditures associated with Measure U.
Historical Revenue by Fund
MEASURE U GENERAL
The General Fund's total revenue for FY2027 is $86.5 million, representing a 2.35% increase from the FY2026 total of $84.5 million. Growth is primarily driven by increases in the City’s major revenue sources, including sales tax (2.9%), Measure U transaction tax (4.9%), property taxes (5.4%), and motor vehicle license fee revenues (6.5%), reflecting continued growth in taxable sales and assessed property values.
Other notable revenue increases include intergovernmental revenues (56.3%), driven by higher AB 109 funding and the addition of Canyon Lake dispatch services; miscellaneous revenues (23.0%), attributable to increased land use rental income and School Resource Officer contract revenues; and cannabis tax revenues, which are projected to increase to $800,000 based on five operational dispensaries. Transient Occupancy Tax revenues are also expected to increase due to audit findings and expanded short-term rental collections.
These gains are partially offset by a significant decline in Community Development revenues, which are projected to decrease by 36.7% due to lower building permit activity. Interest earnings are also expected to decline as a result of reduced fund balances and lower interest rates.
FY27 Revenues by Fund
GENERAL $69,550,000 80.37%
MEASURE U $16,985,000 19.63%
$71M
$80M
$84M $85M $87M
FY2023 FY2024 FY2025 FY2026 FY2027
0 $25M
$50M
$75M
$100M
86.5M
General Fund
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18.D.
For the General Fund in the fiscal year, the revenue by fund consists of $69.6 million, which represents 80.37% under the category GENERAL, and $17 million, accounting for 19.63% under the category MEASURE U.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
GENERAL $68,363,707.50 $41,702,049.95 $69,550,000.00 1.74% MEASURE U $16,184,000.00 $10,731,379.46 $16,985,000.00 4.95% Total Revenues $84,547,707.50 $52,433,429.41 $86,535,000.00 2.35% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
Revenues by Revenue Source
Historical Revenue by Revenue Source
Utility Charges for Services Other Non-Operating Fines & Forfeitures Charges for Services Use of Money & Property Licenses & Permits Misc. Intergovernmental Taxes
The General Fund's total revenue for FY2027 is $86.5 million, reflecting a 2.35% increase from FY2026's $84.5 million.
Taxes remain the largest revenue source, increasing by $2.5 million or 4.83% to $55.1 million, now representing 63.71% of the total revenue, up from 62.21% in FY2026.
Intergovernmental revenue rose by $1.3 million or 11.19% to $13 million, increasing its share from 13.79% to 14.98% of total revenue. Miscellaneous revenue also saw a significant increase of $1.4 million or 15.91%, reaching $10.5 million and accounting for 12.16% of the total, up from 10.74% previously.
Use of Money & Property decreased by $978,000 or 26.06% to $2.8 million, reducing its portion of total revenue from
4.44% to 3.21%. Licenses & Permits experienced a notable decline of $2.2 million or 46.46%, falling to $2.6 million and dropping from 5.68% to 2.97% of total revenue.
Charges for Services decreased by $127,800 or 5.17% to $2.3 million, slightly reducing its share from 2.92% to 2.71%.
Fines & Forfeitures increased by $36,400 or 20.03% to $218,100, raising its share from 0.21% to 0.25%. Utility Charges for Services grew by $4,100 or 78.85% to $9,300, maintaining a minimal share of 0.01%.
Revenues by Fund
$71M
$80M
$84M $85M $87M
FY2023 FY2024 FY2025 FY2026 FY2027
0 $25M
$50M
$75M
$100M
General Fund
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18.D.
Other Non-Operating revenue was eliminated, decreasing by $4,800 or 100% to $0, removing its previous 0.01% share of total revenue.
FY27 Revenues by Revenue Source
Taxes $55,132,500 63.71%
Intergovernmental $12,960,000 14.98%
Misc. $10,525,700 12.16%
Use of Money & Property $2,775,000 3.21%
Licenses & Permits $2,569,500 2.97%
Charges for Services $2,344,900 2.71%
Fines & Forfeitures $218,100 0.25%
Utility Charges for Services $9,300 0.01%
The General Fund's Fiscal Year Revenue by Revenue Source is primarily composed of Taxes, which account for $55.1 million or 63.71% of the total revenue. Intergovernmental revenues contribute $13 million, representing 14.98%.
Miscellaneous sources provide $10.5 million, making up 12.16% of the revenue.
Additional revenue comes from the Use of Money & Property at $2.8 million (3.21%), Licenses & Permits at $2.6 million (2.97%), and Charges for Services at $2.3 million (2.71%). Smaller contributions include Fines & Forfeitures at $218,100 (0.25%) and Utility Charges for Services at $9,300 (0.01%).
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
Taxes $52,594,500.00 $34,810,677.25 $55,132,500.00 4.83% Licenses & Permits $4,799,100.00 $1,888,746.61 $2,569,500.00 -46.46% Fines & Forfeitures $181,700.00 $166,478.21 $218,100.00 20.03% Use of Money &
Property
$3,753,000.00 $146,559.55 $2,775,000.00 -26.06%
Intergovernmental $11,655,707.50 $6,521,188.95 $12,960,000.00 11.19% Charges for Services $2,472,700.00 $1,439,614.22 $2,344,900.00 -5.17% Misc. $9,081,000.00 $7,456,463.37 $10,525,700.00 15.91% Utility Charges for
Services
$5,200.00 $3,701.25 $9,300.00 78.85%
Other Non-Operating $4,800.00 -100.00%
Total Revenues $84,547,707.50 $52,433,429.41 $86,535,000.00 2.35%
86.5M
Revenues by Revenue Source
General Fund
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18.D.
Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
Expenditures by Fund
Historical Expenditures by Fund
MEASURE U GENERAL
In FY2027, the total expenditures for the General Fund are budgeted at $96.3 million, representing a 1.53% increase from the FY2026 total of $94.9 million. The largest fund category remains the General fund, accounting for $74.9 million or 77.78% of the total, which is a decrease of $2.1 million or 2.76% compared to FY2026's $77 million (81.21% of total).
The Measure U fund shows a significant increase in FY2027, with expenditures rising to $21.4 million, making up 22.22% of the total budget. This is an increase of $3.6 million or 20.08% from the previous year's $17.8 million (18.79% of total).
Measure U is the largest contributor to the overall budget increase in FY2027.
FY27 Expenditures by Fund
GENERAL $74,923,000 77.78%
MEASURE U $21,406,000 22.22%
For the fiscal year expenditures by fund in the General Fund, the GENERAL category accounts for $74.9 million, representing 77.78% of the total expenditures. The MEASURE U category comprises $21.4 million, which is 22.22% of the total expenditures.
$62M
$70M
$88M
$95M $96M
FY2023 FY2024 FY2025 FY2026 FY2027
0 $25M
$50M
$75M
$100M
$125M
96.3M
General Fund
FY2627 Operating Budget CM Recommended | Hemet Page 95 of 345 Page 78
18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
GENERAL $77,047,897.96 $68,374,803.46 $74,923,000.00 -2.76% MEASURE U $17,825,907.84 $15,032,444.81 $21,406,000.00 20.08% Total Expenditures $94,873,805.80 $83,407,248.27 $96,329,000.00 1.53% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
Expenditures by Object Summary
Historical Expenditures by Object Summary
Transfers Out Capital Outlay Operating Supplies & Services Internal Service Charges Salaries & Fringe Benefits
The General Fund's total expenditures for FY2027 amount to $96.3 million, reflecting a 1.53% increase from the previous year's total of $94.9 million. Salaries & Fringe Benefits remain the largest expenditure category at $61.1 million, representing 63.48% of the total budget. This category increased by $1.4 million, or 2.39%, compared to FY2026.
Internal Service Charges also saw a notable increase, rising by $1.5 million or 7.48% to $22 million, which accounts for
22.86% of the total expenditures. In contrast, Operating Supplies & Services decreased by $1.1 million, or 9.15%, to $11.3 million, making up 11.74% of the budget. The City Manager's Office and Finance staff worked with departments to decrease Operating Supplies & Services in the FY2027 budget by 10% as a cost-saving measure.
Capital Outlay expenditures declined by $313,042, or 15.51%, to $1.7 million, representing 1.77% of the total. Transfers Out decreased by $50,000, or 25%, to $150,000, accounting for 0.16% of the budget. These changes highlight shifts in spending priorities within the General Fund for FY2027 compared to the prior year.
Expenditures by Fund
$62M
$70M
$88M $95M $96M
FY2023 FY2024 FY2025 FY2026 FY2027
-$50M
0 $50M
$100M
$150M
General Fund
FY2627 Operating Budget CM Recommended | Hemet Page 96 of 345 Page 79
18.D.
FY27 Expenditures by Object Summary
Salaries & Fringe Benefits $61,147,400 63.48%
Internal Service Charges $22,018,000 22.86%
Operating Supplies & Services $11,308,600 11.74%
Capital Outlay $1,705,000 1.77%
Transfers Out $150,000 0.16%
For the General Fund fiscal year expenditures by object summary, Salaries & Fringe Benefits account for $61.1 million, representing 63.48% of the total. Internal Service Charges follow with $22 million, or 22.86%. Operating Supplies & Services amount to $11.3 million, making up 11.74%. Capital Outlay expenditures are $1.7 million, which is 1.77%.
Transfers Out total $150,000, comprising 0.16% of the expenditures.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
Salaries & Fringe
Benefits
$59,722,242.17 $52,677,009.84 $61,147,400.00 2.39%
Operating Supplies &
Services
$12,448,122.02 $9,357,199.55 $11,308,600.00 -9.15%
Internal Service
Charges
$20,485,400.00 $17,071,160.00 $22,018,000.00 7.48%
Transfers Out $200,000.00 $16,670.00 $150,000.00 -25.00% Capital Outlay $2,018,041.61 $4,285,208.88 $1,705,000.00 -15.51% Total Expenditures $94,873,805.80 $83,407,248.27 $96,329,000.00 1.53% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
96.3M
Expenditures by Object Summary
General Fund
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18.D.
Measure U
The voters of the City of Hemet approved Measure U in 2016, which was a 1% transaction and use tax to be used for general municipal services for the City of Hemet. Once approved, a one cent per dollar tax was levied on the sale of all tangible personal property purchased from any retailers within the City of Hemet. Proceeds of the tax were to be deposited in the City’s general fund and subject to the same independent annual audit as other general fund revenue.
Summary
Revenues vs Expenditures Summary
In the 2027 budget for Measure U, the expenditures are budgeted at $21.4 million, which represents a 20.08% increase from the previous year's budgeted expenditures of $17.8 million. This marks a significant rise following the prior year's
17.25% decrease. Measure U fund balance is being utilized to purchase equipment such as radios, cameras, hoses and vehicles, rehabilitate fire stations, and aid in liability insurance coverage for Police and Fire.
On the revenue side, the 2027 budgeted revenue is $17 million, showing a 4.95% increase compared to the 2026 budgeted revenue of $16.2 million. This follows a smaller decline of 2.08% in the previous period.
Overall, the 2027 budget reflects a notable increase in expenditures outpacing the growth in revenues, with expenditures rising by over 20% and revenues increasing by just under 5% from the prior year.
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2023 2024 2025 2026 2027
0 $5M
$10M
$15M
$20M
$25M
Measure U
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18.D.
Expenditures by Object Summary
Historical Expenditures by Object Summary
Operating Supplies & Services Capital Outlay Internal Service Charges Salaries & Fringe Benefits
The total expenditures for Measure U in FY2027 increased to $21.4 million, representing a 20.08% rise from the FY2026 total of $17.8 million. Salaries & Fringe Benefits remained the largest category, accounting for 80.09% of the total at $17.1 million, which is a $2 million increase or 13.57% higher than the previous year.
Internal Service Charges saw a significant increase to $2.8 million, making up 13.04% of the total budget. This category grew by $1.8 million, a 168.56% increase from FY2026. The increase is due to a large contribution from the Measure U fund to the Liability Fund for insurance coverage and claim costs.
Operating Supplies & Services also increased notably to $489,500, or 2.29% of the total, which is $377,556 more than the prior year, reflecting a 337.27% rise. The Measure U fund balance is being utilized to replace equipment such as radios and dispatch consoles in the Police Department.
Conversely, Capital Outlay decreased to $981,000, representing 4.58% of the total expenditures. This category declined by $597,464, a 37.85% reduction compared to FY2026. Overall, the FY2027 budget shows growth in Salaries & Fringe Benefits, Internal Service Charges, and Operating Supplies & Services, while Capital Outlay experienced a decrease.
FY27 Expenditures by Object Summary
Salaries & Fringe Benefits $17,144,600 80.09%
Internal Service Charges $2,790,900 13.04%
Capital Outlay $981,000 4.58%
Operating Supplies & Services $489,500 2.29%
$17M $17M
$15M
$18M
$21M
FY2023 FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M
21.4M
Measure U
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18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
Salaries & Fringe
Benefits
$15,096,300.00 $12,853,870.48 $17,144,600.00 13.57%
Operating Supplies &
Services
$111,943.92 $6,883.08 $489,500.00 337.27%
Internal Service
Charges
$1,039,200.00 $866,010.00 $2,790,900.00 168.56%
Capital Outlay $1,578,463.92 $1,305,681.25 $981,000.00 -37.85% Total Expenditures $17,825,907.84 $15,032,444.81 $21,406,000.00 20.08% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
Expenditures by Object Summary
Measure U
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18.D.
Special Revenue Funds
Special Revenue Funds are funds used within a government entity to record the proceeds from certain revenue sources for which fund usage is restricted. The use of a special revenue fund makes it easier to track cash inflows and outflows related to special-purpose activities. They are especially useful for maintaining the accountability for specially-allocated funds. Grant Funds are included with the Special Revenue Funds in this section.
Summary
Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2023 2024 2025 2026 2027
0 $10M
$20M
$30M
$40M
Special Revenue Funds
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18.D.
In the 2027 budget for Special Revenue Funds, the total expenditures are budgeted at $12.3 million, representing a significant decrease of 44.63% compared to the previous year's budget of $22.3 million. Differences in budget are as follows:
The FY2026 budget includes the operating budgets for Landscape and Lighting Maintenance Districts and Community Facilities Districts. The FY2027 budget will be approved by City Council in separate action items after public hearings.
The FY2026 budget includes capital improvement projects in the Gas Tax fund and Measure A fund for transportation and road projects. New capital improvement projects for FY2027 will be approved by City Council in separate action items in July.
Grant expenditures vary from year to year.
On the revenue side, the budgeted amount for 2027 is $17.5 million, which is slightly lower by 0.34% compared to the $17.6 million budgeted in 2026. This indicates a relatively stable revenue projection with only a minor decrease.
Overall, the 2027 budget reflects a notable contraction in expenditures while maintaining nearly consistent revenue levels compared to the prior year.
Revenues by Fund
Historical Revenue by Fund
HOME PROGRAM NSP GRANT HOUSING AUTHORITY
ASSET SEIZURE LASALLE ENDOWMENT ARTICLE 3 / SB 821
RDA RETIREMENT OBLIGATION PUBLIC SAFETY/TOWING GENERAL PLAN AIR POLLUTION REDUCTION PUBLIC WORKS CFD POST PROP-218 LIGHTING FUND COPS FUNDING/AB 3229 ATP GRANT PENSION SECTION 115 TRUST
OPEB TRUST REDEVELOPMENT OBLIGATION
RTRMT
MISCELLANEOUS GRANTS
HEARTLAND 2006 REFUNDING PUBLIC SAFETY GRANTS COMMUNITY DEVELOPMENT (CDBG) L&LMD PUBLIC SAFETY CFD POST PROP-218 LANDSCAPE FUND
MEASURE A TAXES AMERICAN RESCUE PLAN GAS TAX
SEWER & STORM DRAIN
The total Special Revenue Funds budget for FY2027 is $17.5 million, representing a slight decrease of 0.34% from the FY2026 total of $17.6 million. The largest revenue category in FY2027 is GAS TAX at $5.1 million, which increased by $262,000 or 5.39% from the previous year and now accounts for 29.2% of the total budget, up from 27.62% in FY2026.
SEWER & STORM DRAIN revenue also rose to $5 million, a 5.1% increase of $245,000, making up 28.77% of the total, slightly higher than its 27.27% share in FY2026. MEASURE A TAXES increased by $255,000 or 9.46% to $3 million, $37M
$30M
$33M
$18M $18M
FY2023 FY2024 FY2025 FY2026 FY2027
-$10M
0 $10M
$20M
$30M
$40M
Special Revenue Funds
FY2627 Operating Budget CM Recommended | Hemet Page 102 of 345 Page 85
18.D.
representing 16.82% of the total budget, up from 15.31% the prior year.
PUBLIC SAFETY CFD saw a notable increase of $252,000 or 25.12%, reaching $1.3 million and comprising 7.16% of the total, compared to 5.7% in FY2026. COMMUNITY DEVELOPMENT (CDBG) grew modestly by $39,303 or 4.44% to $924,303, maintaining a similar share of 5.27% of the total budget.
COPS FUNDING/AB 3229 remained steady at $250,000 with no change, holding 1.43% of the total. AIR POLLUTION REDUCTION and PUBLIC SAFETY/TOWING funds increased by $8,000 (6.56%) and $55,000 (78.57%) respectively, to $130,000 and $125,000, representing 0.74% and 0.71% of the total budget.
Among the largest decreases, PENSION SECTION 115 TRUST dropped sharply by $1.4 million or 93.98% to $90,000. Due to budget challenges, the city will hold off on additional contributions to the pension trust.
PUBLIC SAFETY GRANTS decreased to zero, a 100% reduction from $149,014. L&LMD declined by $60,000 or 36.36% to $105,000, and GENERAL PLAN decreased by $17,000 or 16.67% to $85,000.
FY27 Revenues by Fund
GAS TAX $5,122,000 29.20%
SEWER & STORM DRAIN $5,045,000 28.77%
MEASURE A TAXES $2,950,000 16.82%
PUBLIC SAFETY CFD $1,255,000 7.16%
COMMUNITY DEVELOPMENT
(CDBG)
$924,303 5.27%
HEARTLAND 2006 REFUNDING $800,000 4.56%
OPEB TRUST $650,000 3.71%
COPS FUNDING/AB 3229 $250,000 1.43%
AIR POLLUTION REDUCTION $130,000 0.74%
PUBLIC SAFETY/TOWING $125,000 0.71%
L&LMD $105,000 0.60%
PENSION SECTION 115 TRUST $90,000 0.51%
GENERAL PLAN $85,000 0.48%
ASSET SEIZURE $7,000 0.04%
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
PUBLIC
SAFETY/TOWING
$70,000.00 $136,111.00 $125,000.00 78.57%
17.5M
Revenues by Fund
Special Revenue Funds
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18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
LASALLE
ENDOWMENT
$61,186.08
GAS TAX $4,860,000.00 $3,791,886.98 $5,122,000.00 5.39% MEASURE A TAXES $2,695,000.00 $1,690,790.32 $2,950,000.00 9.46%
AIR POLLUTION
REDUCTION
$122,000.00 $59,927.01 $130,000.00 6.56%
L&LMD $165,000.00 $1,248,665.32 $105,000.00 -36.36%
POST PROP-218
LIGHTING FUND
$213,538.86
POST PROP-218
LANDSCAPE FUND
$1,228,141.58
PUBLICWORKS CFD $414,562.80
ASSET SEIZURE $7,000.00
PUBLIC SAFETY
GRANTS
$149,014.00 $1,187,593.68 -100.00%
PUBLIC SAFETY CFD $1,003,000.00 $815,729.29 $1,255,000.00 25.12%
COPS FUNDING/AB
3229
$250,000.00 -$95.55 $250,000.00
COMMUNITY
DEVELOPMENT
(CDBG)
$885,000.00 $104,929.38 $924,303.00 4.44%
GENERAL PLAN $102,000.00 $8,157.03 $85,000.00 -16.67%
SEWER & STORM
DRAIN
$4,800,000.00 $3,594,783.56 $5,045,000.00 5.10%
MISCELLANEOUS
GRANTS
$549,184.35
REDEVELOPMENT
OBLIGATION RTRMT
$917,112.94
HEARTLAND 2006
REFUNDING
$777,000.00 $444,663.71 $800,000.00 2.96%
OPEB TRUST $225,000.00 $685,647.62 $650,000.00 188.89%
PENSION SECTION 115
TRUST
$1,496,000.00 $1,703,877.76 $90,000.00 -93.98%
Total Revenues $17,599,014.00 $18,856,393.72 $17,538,303.00 -0.34% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026. A budget adjustment to amend the FY2026 revenue budget for the Lighting and Landscape Districts and Public Works CFD is pending.
Special Revenue Funds
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18.D.
Revenues by Revenue Source
Historical Revenue by Revenue Source
Utility Charges for Services Other Non-Operating Use of Money & Property Charges for Services Misc. Intergovernmental
Taxes
The total revenue for Special Revenue Funds in FY2027 is $17.5 million, representing a slight decrease of 0.34% from the previous year's total of $17.6 million. The largest revenue source remains Intergovernmental funds, which increased by $160,289 or 2.58% to $6.4 million, now comprising 36.33% of the total revenue, up from 35.29% in FY2026.
Taxes also saw an increase, rising by $388,100 or 8.88% to $4.8 million, making up 27.14% of the total revenue compared to 24.84% the prior year. Charges for Services experienced a modest increase of $28,000 or 1.13%, reaching $2.5 million and maintaining a similar share of 14.23% of total revenue.
Use of Money & Property showed a significant increase of $923,900 or 255.93%, growing to $1.3 million and accounting for 7.33% of total revenue, up from 2.05% previously. Conversely, Miscellaneous revenue decreased by $1.5 million or
37.6% to $2.5 million, reducing its share to 14.24% from 22.75% in FY2026.
Other Non-Operating revenue declined by $60,000 or 32.43% to $125,000, representing 0.71% of the total, down from
1.05%. Utility Charges for Services, which had no revenue in the previous year, recorded $4,000 in FY2027, constituting
0.02% of the total revenue.
$37M
$30M
$33M
$18M $18M
FY2023 FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M
$40M
Special Revenue Funds
FY2627 Operating Budget CM Recommended | Hemet Page 105 of 345 Page 88
18.D.
FY27 Revenues by Revenue Source
Intergovernmental $6,371,303 36.33%
Taxes $4,760,100 27.14%
Misc. $2,498,000 14.24%
Charges for Services $2,495,000 14.23%
Use of Money & Property $1,284,900 7.33%
Other Non-Operating $125,000 0.71%
Utility Charges for Services $4,000 0.02%
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
Taxes $4,372,000.00 $6,688,074.17 $4,760,100.00 8.88%
Use of Money &
Property
$361,000.00 $755,905.34 $1,284,900.00 255.93%
Intergovernmental $6,211,014.00 $5,676,755.85 $6,371,303.00 2.58% Charges for Services $2,467,000.00 $2,008,108.92 $2,495,000.00 1.13% Misc. $4,003,000.00 $3,853,553.66 $2,498,000.00 -37.60% Utility Charges for
Services
-$142,674.22 $4,000.00
Other Non-Operating $185,000.00 $16,670.00 $125,000.00 -32.43% Total Revenues $17,599,014.00 $18,856,393.72 $17,538,303.00 -0.34% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
17.5M
Revenues by Revenue Source
Special Revenue Funds
FY2627 Operating Budget CM Recommended | Hemet Page 106 of 345 Page 89
18.D.
Expenditures by Fund
Historical Expenditures by Fund
CALHOME GRANT HOME - PROGRAM INCOME PENSION SECTION 115 TRUST
HOME PROGRAM OPEB TRUST LASALLE ENDOWMENT
ARTICLE 3 / SB 821 PUBLIC SAFETY/TOWING GENERAL PLAN
RDA RETIREMENT OBLIGATION PUBLIC WORKS CFD COPS FUNDING/AB 3229 POST PROP-218 LIGHTING FUND AIR POLLUTION REDUCTION ATP GRANT SB1 RMRA REDEVELOPMENT OBLIGATION RTRMT MISCELLANEOUS GRANTS HEARTLAND 2006 REFUNDING COMMUNITY DEVELOPMENT (CDBG) PUBLIC SAFETY GRANTS PUBLIC SAFETY CFD L&LMD POST PROP-218 LANDSCAPE FUND
MEASURE A TAXES AMERICAN RESCUE PLAN GAS TAX
SEWER & STORM DRAIN
$26M $26M
$37M
$22M
$12M
FY2023 FY2024 FY2025 FY2026 FY2027
-$10M
0 $10M
$20M
$30M
$40M
Special Revenue Funds
FY2627 Operating Budget CM Recommended | Hemet Page 107 of 345 Page 90
18.D.
FY27 Expenditures by Fund
SEWER & STORM DRAIN $3,458,000 28.05%
GAS TAX $2,242,000 18.18%
PUBLIC SAFETY CFD $1,244,000 10.09%
POST PROP-218 LANDSCAPE
FUND
$1,023,000 8.30%
COMMUNITY DEVELOPMENT
(CDBG)
$924,303 7.50%
REDEVELOPMENT OBLIGATION
RTRMT
$888,000 7.20%
L&LMD $793,000 6.43%
HEARTLAND 2006 REFUNDING $757,000 6.14%
AIR POLLUTION REDUCTION $412,000 3.34%
PUBLIC WORKS CFD $260,000 2.11%
RDA RETIREMENT OBLIGATION $125,000 1.01%
PUBLIC SAFETY/TOWING $120,000 0.97%
POST PROP-218 LIGHTING FUND $58,000 0.47%
LASALLE ENDOWMENT $25,000 0.20%
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
PUBLIC
SAFETY/TOWING
$70,000.00 $103,254.45 $120,000.00 71.43%
LASALLE
ENDOWMENT
$21,000.00 $11,264.86 $25,000.00 19.05%
GAS TAX $2,292,000.00 $2,798,828.05 $2,242,000.00 -2.18% MEASURE A TAXES $2,650,000.00 $4,609,383.65 -100.00%
ARTICLE 3 / SB 821 $535,355.35
AIR POLLUTION
REDUCTION
$11,000.00 $11,000.00 $412,000.00 3,645.45%
L&LMD $1,851,611.00 $1,464,481.46 $793,000.00 -57.17%
POST PROP-218
LIGHTING FUND
$452,180.00 $146,178.38 $58,000.00 -87.17%
POST PROP-218
LANDSCAPE FUND
$2,208,228.00 $1,571,840.09 $1,023,000.00 -53.67%
PUBLICWORKS CFD $146,200.00 $185,023.00 $260,000.00 77.84%
12.3M
Expenditures by Fund
Special Revenue Funds
FY2627 Operating Budget CM Recommended | Hemet Page 108 of 345 Page 91
18.D.
Category FY 2026 Amended FY 2026 Actuals
FY 2027 CM
Recommended
FY 2026 Amended
vs. FY 2027 CM
Recommended (%
Change)
PUBLIC SAFETY
GRANTS
$149,014.00 $3,008,405.58 -100.00%
PUBLIC SAFETY CFD $1,171,000.00 $1,180,703.05 $1,244,000.00 6.23%
COPS FUNDING/AB
3229
$129,164.29
COMMUNITY
DEVELOPMENT
(CDBG)
$885,000.00 $154,801.13 $924,303.00 4.44%
GENERAL PLAN $500,000.00 -100.00%
SEWER & STORM
DRAIN
$5,742,000.00 $4,339,326.02 $3,458,000.00 -39.78%
MISCELLANEOUS
GRANTS
$1,149,009.48
AMERICAN RESCUE
PLAN
$1,184,572.63
RDA RETIREMENT
OBLIGATION
$125,000.00 $11,141.25 $125,000.00
REDEVELOPMENT
OBLIGATION RTRMT
$880,900.00 $880,515.26 $888,000.00 0.81%
HEARTLAND 2006
REFUNDING
$758,000.00 $16,015.77 $757,000.00 -0.13%
OPEB TRUST $19,029.77
PENSION SECTION 115
TRUST
$8,321.92
SB1 RMRA $2,352,469.00 $37,006.75 -100.00%
Total Expenditures $22,265,602.00 $23,554,622.19 $12,329,303.00 -44.63% Note: The FY2026 Amended Budget and FY2026 Actuals are as of April 30, 2026.
Expenditures by Object Summary
Historical Expenditures by Object Summary
Other Non-Operating Expend Transfers Out Debt Service
Internal Service Charges Operating Supplies & Services Salaries & Fringe Benefits Capital Outlay
$26M $26M
$37M
$22M
$12M
FY2023 FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M
$40M
Special Revenue Funds
FY2627 Operating Budget CM Recommended | Hemet Page 109 of 345 Page 92
18.D.