REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Brendan Rafferty, Assistant Director of Administrative Services Date:August 26, 2025
Subject: Fiscal Year 2025-2026 Revised Operating Budget Status Report Recommendation
1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING THE FY 2025-2026 ANNUAL OPERATING BUDGET FOR ADJUSTMENTS; and
2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING THE FY 2025-2026 SCHEDULE OF AUTHORIZED POSITIONS FOR
REORGANIZATION ADJUSTMENTS
Background
The matter before the City Council is a request to amend the FY2025-2026 Operating Budget of the General Fund and FY2025-2026 Schedule of Authorized Positions.
The City is experiencing tremendous growth in both residential and commercial development.
Active residential projects include Alberhill Ranch, Terracina, Lakeshore Drive Condominiums, and Lakepointe Apartments among others. Current commercial and industrial projects include In- N-Out, Evergreen Development, and Corydon Gateway with more in the planning stages.
The City is also implementing an aggressive Capital Improvement Program to accommodate that development, maintain, and also improve the quality of life for residents. That includes major street and highway improvements as well as drainage, park, and facility improvements and, of course, new facilities like the City Hall, the library, and future amphitheater. Meanwhile facility usage, operations, and maintenance need to continue to evolve, and the staffing needs to continue to evolve with them.
The City, like other cities in the area, is being confronted with new state and regional requirements in both waste management and stormwater quality-related areas (NPDES). These requirements will necessitate even greater attention from staff. Finally, staff seeks to continue to build on the FY 2025-2026 REVISED OPERATING BUDGET
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successes achieved in the Lake itself and the Launch Pointe Recreation Destination and RV Park through restructuring as well.
The local economic outlook remains positive. Development activity is continuing within the City.
Inflation has begun to moderate; a cut in interest rate is expected this fall. Nonetheless, the City must continue to operate in a fiscally prudent manner, maintain public safety service levels, and provide the critical recovery and relief services that our citizens expect.
Over the last year, the City has been diligent in following the City’s spending priorities:
•Improving the Water Quality of the Lake
•Preparing for any public health or catastrophic emergency •Having adequate 9-1-1 emergency capacity
•Continuing to address homelessness and supporting residents and families in transition •Improving fire protection and paramedic services
•Keeping public areas safe, healthy, and clean
•Continuing law enforcement services, including effectively staffed neighborhood patrols In order to better serve the community and meet the City Council’s expectations, staff seeks to add staffing and reorganize certain staffing responsibilities to better focus the engineering department on longer-term planning of infrastructure and managing large capital projects (interchanges, arterials, drainage, facilities, etc.) and shift operational processes to public works staff. Those changes are discussed in greater detail below.
Discussion
The FY2025-2026 highlighted changes include:
•Add a Director of Public Works position
•Add a Traffic Signal Technician position
•Add a Project Manager position
•Add a Project Superintendent position
•Split Engineering operations and long-term infrastructure planning efforts to Land Development Division and Public Works Administrations Division •Rename Community Support to Lake & Community Operations •Rename Community Services to Recreation
•Provide funding for several unfunded positions within Community Development, Land Development, and Public Works Administration
•Move NPDES Administrator position to Lake & Community Operations The proposed reorganization will accomplish several objectives, including producing the additional resources required to meet the needs of the development community while continuing to provide exemplary services to the community. In addition, adding the additional engineering resources will help the City implement its aggressive Capital Improvement Program and enhance traffic management efforts throughout the community. Moving NPDES and waste management into other departments will allow Public Works to focus their efforts on delivering projects as well.
FY 2025-2026 REVISED OPERATING BUDGET
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Also notable, staff believe that because Engineering staff and Public Works staff are both working on smaller to moderate-sized projects, moving certain Engineering personnel into the Public Works Department will improve communication on all such projects City staff is committed to reflecting the community’s priorities and ensuring our budget and financial policies reflect spending consistent with the City Council and the community’s priorities.
The City will continue to maintain the Uncertainty Reserve at 20%. Additionally, the City Manager will continue working with the departments to manage expenditures before June 30, 2026 closely.
Fiscal Impact
The costs associated with this reorganization are largely borne through the payment of fees, grant reimbursements, and the use of local and regional transportation fees. The overall fiscal impact of the FY2025-2026 Revised Operating Budget for the General Fund is as follows:
Net Adjustment to Fund Balance from Mid-Year: Amount
Revenue Adjustments $ 2,236,135
Appropriations Adjustments 2,236,135
Net change/(impact) from Current Budget $ - Description
Lake & Community Operations Planning
Land Development & Engineering Public Works TotalsExpendituresSalaries 159,200$ 517,990$ 24,440$ 974,780$ 1,676,410$ Benefits 70,630 241,220 (130,440) 510,315 691,725Operation & Maintenance - (132,000) - - (132,000)TOTAL 229,830$ 627,210$ (106,000)$ 1,485,095$ 2,236,135$ FundingCharges for Services -$ 627,210$ -$ -$ 627,210$ CSA 152 - NPDES Fees 229,830 - - - 229,830Reimbursements - - (106,000) 1,485,095 1,379,095TOTAL 229,830$ 627,210$ (106,000)$ 1,485,095$ 2,236,135$ FY 2025-2026 REVISED OPERATING BUDGET
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General Fund Balance Reserves
The General Fund Balance Reserves at June 30, 2026, would reflect the following because of the proposed Mid-Year adjustments, as follows:
Analysis of Change in Fund Balance: Amount
Net Operating Revenues/(Deficit) $ - Net Change/(Impact) -
Net Operating Revenues/(Deficit), as adjusted $ - Fund Balance, July 1, 2025 (unaudited) 20,841,585 Fund Balance, June 30, 2026 (projected-
unaudited) $ 20,841,585
Detail of Fund Balance:
Nonspendable:
Deposits and prepaid items $ 74,681
Loans Receivable 1,000,000
Assigned
Uncertainty reserve (20%) 15,944,473
Unassigned
Unallocated reserve 3,822,431
Total Fund Balance (net) $ 20,841,585
Description
Lake & Community Operations Planning
Land Development & Engineering Public Works Totals
Salaries & Benefits5100REGULAR EMPLOYEES 159,200$ 517,990$ 24,440$ 974,300$ 1,675,930$ 5103CELL PHONE ALLOWANCE - - - 480 4805105MEDICAL INSURANCE 33,350 133,400 (61,440) 230,430 335,7405106VISION INSURANCE 250 1,000 (1,300) 2,350 2,3005107DENTAL INSURANCE 1,200 4,800 (6,860) 10,820 9,9605108LIFE INSURANCE 130 410 (260) 1,700 1,9805109EMPLOYEE ASSISTANCE PROGRAM - - - - -5110RETIREMENT 23,660 67,560 (54,280) 175,600 212,5405111WORKER'S COMPENSATION 1,420 1,160 (400) 11,260 13,4405112MEDICARE 2,330 7,570 310 14,390 24,6005113SOCIAL SECURITY 7,350 22,500 (3,940) 54,590 80,5005114STATE DISABILITY INSURANCE 940 2,820 (720) 7,300 10,3405115BI-LINGUAL ALLOWANCE - - (900) 900 -5117BOOT & UNIFORM ALLOWANCE - (650) 975 325SUBTOTAL 229,830 759,210 (106,000) 1,485,095 2,368,135Operation & Maintenance5200CONSULTING SERVICES (132,000) (132,000)TOTAL 229,830$ 627,210$ (106,000)$ 1,485,095$ 2,236,135$ FY 2025-2026 REVISED OPERATING BUDGET
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Attachments
Attachment 1 - Resolution Operating Budget
Exhibit A - General Fund Summary
Attachment 2 - Resolution Schedule of Authorized Positions Exhibit A - Schedule of Authorized Positions
Exhibit B – Salary Schedules
City Manager's Office