Menifee City Council
March 1, 2023

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Bill Zimmerman, Mayor
Bob Karwin, District 1
Ricky Estrada, District 2
Lesa Sobek, District 3
Dean Deines, District 4
SPECIAL AGENDA
Menifee City Council
Special Meeting Agenda
Wednesday, March 1, 2023
6:00 PM Special Meeting
Armando G. Villa, City Manager
Jeffrey T. Melching, City Attorney
Kay Vinson, Acting Clerk
SPECIAL MEETING (4:00 PM)

1. CALL TO ORDER

2.  ROLL CALL

3.  PLEDGE OF ALLEGIANCE

4.  FISCAL YEAR 2022­23 MID­YEAR BUDGET ADJUSTMENTS AND REVIEW AND CAPITAL IMPROVEMENT PROGRAM STATUS UPDATE

4.1. Fiscal Year 2022­23 Mid­Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
RECOMMENDED ACTION

1.  Accept the fiscal year 2022­23 Mid­Year budget review and approve the additional budget revenue and appropriations recognitions as presented; and

2.  Adopt the updated City’s Authorized Position Listing approving additional staffing changes; and

3.  Receive an update on the fiscal year 2022­23 Capital Improvement Program.

5. ADJOURN
Decorum Policy Notes
Public participation is anticipated and encouraged at meetings. Please turn your cell phones off or refrain from talking in the audience or outbursts that may be disruptive. Mutual respect is requested.

Staff Reports
Materials related to an item on this agenda, including those submitted after distribution of the agenda packet, are available for public inspection by contacting the City Clerk Department at (951) ​672​­ 6777 or by coming into City Hall located at 29844 Haun Road, Menifee, CA 92586 during normal business hours.

Compliance with the Americans with Disabilities Act
If you need special assistance to participate in this meeting, you should contact the City Clerk Department at (951)​ 672­​­ 6777 or by coming into City Hall located at 29844 Haun Road, Menifee, CA 92586 during normal business hours.  Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Menifee Mayor and City Council
March 1, 2023
Page
1 of 26

CITY OF MENIFEE
SUBJECT: Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status
Update
MEETING DATE: March 1, 2023
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Regina Funderburk, Chief Financial Officer APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the fiscal year 2022-23 Mid-Year budget review and approve the additional budget revenue and appropriations recognitions as presented; and

2. Approve a Resolution updating the City’s Authorized Position Listing approving additional staffing changes; and

3. Receive an update on the fiscal year 2022-23 Capital Improvement Program.

DISCUSSION
Annually, a mid-year budget review is presented to Council as an opportunity for the City Manager and the Finance Department to:

1. Provide an overall update of the City’s budget year underway.

2. Present any additional necessary budget adjustments identified during the Mid-Year review process for City Council’s consideration and approval.

3. Update City Council on the Capital Improvement Program.

As a part of the mid-year review, the Finance department worked with the various City departments along with the City’s Executive Office and reviewed/analyzed the following:
oAdopted Budget vs. Adjusted Budget (Summary of Adjustments): Provides a comprehensive summary of the Adopted Budget to Adjusted Budget as of February 1, 2023.
oCurrent Economic Outlook & Revenue Analysis (National, State, Regional and Local):

Provides the economic background and analysis for any recommended changes to the City’s revenues for the remainder of the fiscal year.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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oGeneral Fund & Quality of Life Funds (Mid-Year Budget Recommendations) - Operating Revenues vs. Operating Expenditures
- Staffing/Personnel Review
oCapital Improvement Program (CIP) Review/Update
oSpecial Revenue & Other Funds (Mid-Year Budget Recommendations) - Revenue and/or Expenditure Adjustments
- American Rescue Plan (ARP) Funds Update
oFiscal Policy and Strategic Plan/Long-Term Financial Planning Overall performance through the first half of the fiscal year is generally meeting budgeted expectations, but there are some operational matters that will be presented for Council’s consideration and there are some variances in several City funds that should be addressed to keep the budget in alignment through the end of the fiscal year, and to place the City in the best possible position for the upcoming budget cycle.

In summary, the City’s Executive Office’s (CEO) Mid-Year recommendations include an increase in total revenue appropriations of $15,754,374 and an increase in total expenditure appropriations of $1,023,651.

The CEO’s request includes an increase in revenue of $1,276,755 for General Fund, $1,973,000 for Quality of Life, and $12,504,619 for Special Revenue & Other Funds for a total increase of $15,754,374.

The CEO’s request also includes an increase of three (3) additional staff that are considered critical at this time and one (1) additional staff that is being funded by reducing the department budget. Staffing requests include:
- 1 Detective (Menifee Police)
- 1 School Resource Officer (Menifee Police)
- 1 Field Supervisor (Community Services/Facilities)
- 1 Office Specialist II (Economic Development)
Expenditure appropriation requests from available Quality of Life funds totaling $813,409, including requests for Menifee PD related personnel vehicles and equipment are included as part of the FY2022-23 Mid-Year review. Additionally, the Fire Services contract is estimated to increase in the amount of $557,000, due to increases in labor costs resulting from new labor agreements retroactive to July 1, 2022. The increase was anticipated during the FY2022-23 budget development. However, the final amount was not known until negotiations were finalized in the fall. Other operational adjustments such as insurance (general liability, worker’s compensation, cyber liability) and part-time wage increases were reviewed and analyzed and will be absorbed within the current year budget through salary savings.

The recommended use of Quality of Life funds was presented at the Quality of Life Committee meeting on February 21, 2023. The Committee reviewed the presented use of available funds and made a motion to recommend use of funds as presented.

Other revenue sources and Special Revenue sources, such as Development Impact Fees (DIF), City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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have also been reviewed for year-to-date actual and actual tax roll assessments/enrollments for CSAs, LLMDs, and CFDs charges. The City’s Executive Office’s Mid-Year recommendations for Special Revenue Funds includes expenditure appropriations of $210,242 to cover some additional technology capital outlays (CCTV and Card access at the Public Works Maintenance and Operations Center (MOC), additional software licenses, annual DIF library reimbursement costs and adjustments in projected utility costs in various special districts (LLMDs, CFDs)).

The following table summarizes the recommended adjustments by fund type:

TABLE 1: SUMMARY OF MID-YEAR RECOMMENDED APPROPRIATIONS Summary of Mid-Year Appropriation Adjustments by Fund (Revenues) Fund Type Adopted
Budget
FY 2022-23
Adjusted
Budget
FY 2022-23 (1)
Mid-Year
Adjustments
Recommended
Adjusted Budget with
Mid-Year Adjustment FY
2022-23
General Fund $67,933,273 $70,440,773 $1,276,755 $71,717,528 Quality of Life 18,126,000 18,126,000 1,973,000 20,099,000 General Fund TOTAL: $86,059,273 $88,566,773 $3,249,755 $91,816,528 Internal Service Funds
(ISFs)
$8,074,333 $8,074,333 $0 $8,074,333
All Other Special
Revenue Funds
29,587,770 49,977,143 12,504,619 62,481,762
All Funds Total: $123,721,376 $146,618,249 $15,754,374 $162,372,623 Summary of Mid-Year Appropriation Adjustments by Fund (Expenditures) Fund Type Adopted
Budget
FY 2022-23
Adjusted
Budget
FY 2022-23(1)
Mid-Year
Adjustments
Recommended
Adjusted Budget with
Mid-Year Adjustment FY
2022-23
General Fund $67,933,273 $85,537,069 $ - $85,537,069 Quality of Life 18,126,000 32,294,171 813,409 33,107,580 General Fund TOTAL: $86,059,273 $117,831,240 $813,409 $118,644,649 Internal Service Funds
(ISFs)
9,558,142 10,615,270 48,000 10,663,270
All Other Special
Revenue Funds
33,711,532 96,694,708 162,242 96,856,950
All Funds Total: $129,328,947 $225,141,218 $1,023,651 $226,164,869 (1) See Attachment 1: Listing of FY2022-23 Budget Amendment Resolutions (BARs) Items through February 1, 2023 to see detail of budget adjustments (carry overs and new appropriations).

Note:

The Adjusted Budget includes the one-time use of available fund balance, primarily for CIP projects carried over from the prior year(s). Use of available fund balance does not use any City Reserve Funds.

Adopted Budget vs. Adjusted Budget (Summary of Adjustments) as of February 1, 2023 The adopted Citywide Fiscal Year 2022/2023 budget totaled $129,328,947 for all funds and supported 315.40 (289 full-time and 26.4 part-time) positions. The City’s General Fund operating budget, inclusive of Quality of Life Measure, total projected revenues of $86,059,273 and total projected expenditures of $86,059,273, resulting in a balanced budget.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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The Adopted Budget is adjusted throughout the year by including appropriations that are carried forward from the prior fiscal year for projects that were planned for and authorized by the City Council, however, not fully completed. In addition, throughout the year the City Council approves adjustments to the Adopted Budget in separate City Council action agenda items. The summary of expenditure adjustments through February 1, 2023, totals $95,812,271, and the total revenue adjustments through February 1, 2023, totaled $22,896,873, which is comprised of the following:

Since July 1, 2022, staff presented 28 staff reports requesting to carry-forward and/or increase revenues and appropriations in the General Fund, Quality of Life, and/or other Special Revenues.

The following charts summarize the total Adopted Budget vs. the Adjusted Budget with all Funds combined.

FY21-22 Carry-Over Appropriations 85,825,125$ FY21-22 Carry-Over Appropriations 16,244,911$ FY22-23 Added Appropriations 9,987,146$ FY22-23 Added Appropriations 6,651,962$ 95,812,271$ 22,896,873$
Expenditures Revenue
FY 2022-23 Adopted Budget as of July 1, 2022 (All Funds) $129,328,947
City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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Table 2 provides a breakdown of the Adopted Budget vs. the Adjusted Budget by fund type.

TABLE 2: FY2022-23 ADOPTED VS ADJUSTED BUDGET (AS OF FEBRUARY 1, 2023) General Fund
General Operating Fund Fiscal Year 2022-23 Budget
Category
Adopted
Budget
June 2022
Carry-Over
From
FY 2021-22
Budget
Resolutions FY
2022-23
Adjusted
Budget
FY 2022-23
Revenue:

Sales Tax $11,573,350 $- $- $11,573,350
Property Tax 19,131,508 - - 19,131,508
Building/Engineering/ 13,890,000 - - 13,890,000
Vehicle License Fee 9,423,677 - - 9,423,677
Franchise Fees 4,390,000 - - 4,390,000
Other 9,524,738 - 2,507,500 12,032,238
Total Revenue $67,933,273 $2,507,500 $70,440,773

Expenditures:

Personnel (1) $31,884,335 $324,213 $- $32,208,449
Operating Expenses (1) 27,512,701 2,765,340 2,500,000 32,778,041 Capital Outlays 142,250 151,257 - 293,607
Transfers & Allocations 7,793,987 - - 7,793,987
Capital Projects (CIP)(2) 600,000 11,802,985 60,000 12,462,985 Debt - - - -
Total Expenditure $67,933,273 $15,043,795 $2,560,000 $85,537,069 Use of Fund Balance (2) $ - $15,043,795 $52,500 $15,096,295

FY 2022-23 Adjusted Budget as of February 1, 2023 (All Funds) $225,141,218
(1) FY2022-23 Adjusted Budget includes budget for PERS medical benefit expenses of approximately $325k moved over from Special Dept. Expense Account (Operating Expense) to Personnel Account during year to consolidate with other salary & benefits expenses (Personnel). This was a budget transfer, between Personnel and Operating Expenses, with no increase in overall budget appropriations.
(2) Use of fund balance corresponds to use of revenues previously collected for approved carry-over expenditures and/or new approved appropriations approved by Council. This does not use City Reserve Funds. (1)
(1)
City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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Quality of Life (Measure DD) Fiscal Year 2022-23 Budget Category
Adopted
Budget
June 2022
Carry-Over
From
FY 2021-22
Budget
Resolutions FY
2022-23
Adjusted
Budget
FY 2022-23
Revenue:

Sales Tax $18,111,000 - - $18,111,000
Interest Earnings 15,000 - - 15,000
Total Revenue $18,126,000 - - $18,126,000

Expenditures:

Menifee Police Department $7,366,217 $1,357,171 - $8,723,388 Fire Department 10,371,976 252,802 - 10,624,778
Code Enforcement 387,807 - - 387,807
Public Works – Safety Equipment - 231,545 - 231,545
Capital Projects (CIP)(2) - 10,141,879 2,184,774 12,326,653 Total Expenditure $18,126,000 $11,983,397 $2,184,774 $32,294,171 Use of Fund Balance $ - $11,983,397 $2,184,774 $14,168,171

General Fund & Quality of Life
Expenditures:
$86,059,273 $117,831,240
Special Revenue & Other Funds Fiscal Year 2022-23 Budget Category
Adopted
Budget
June 2022
Carry-Over
From
FY 2021-22
Budget
Resolutions FY
2022-23
Adjusted
Budget
FY 2022-23
Revenue:

Internal Service Funds (ISF) $8,074,333 $- $- $8,074,333 Gas Tax & Other Special Revenue
Funds
10,778,781 14,516,504 4,125,101 29,420,386
LLMD Funds 922,189 - - 922,188
CFD Funds (Maintenance) 4,996,533 - 19,361 5,015,894
CFD Funds (Infrastructure) 0 - - 0
CSA Funds 1,895,007 - - 1,895,007
DIF/Quimby/RBBD Funds 6,240,668 - - 6,240,668
Capital Project Fund 2,484,099 1,728,407 - 4,212,506
Debt Service Fund 1,750,825 - - 1,750,825
Trust Funds 519,668 - - 519,668
Total Revenue $37,662,102 $16,244,911 $4,144,462 $58,051,475

Expenditures:

Personnel (1) $5,373,344 ($183,996) $- $5,189,348
Operating Expenses(1) 10,967,056 2,337,931 1,055,837 14,360,824 Capital Outlays(1) 2,888,800 825,747 473,941 4,188,488 Transfers & Allocations 4,645,879 1,507,500 - 6,153,379 Capital Projects (CIP) 17,729,003 54,310,751 3,599,344 75,639,098 Debt 1,665,592 - 113,250 1,778,842
Total Expenditure $43,269,674 $58,797,933 $5,242,372 $107,309,979 Use of Fund Balance $5,607,572 $42,553,022 $1,097,910 $49,258,504

Overall Budget Grand Total
Including All Funds Expenditures:
$129,328,947 $225,141,218
(2) Includes use of Assigned Reserve for Holland Road $671,614 (Account #105-4571) used in FY2022-23 for award of construction contract.
(1) FY2022-23 Adjusted Budget includes budget transfers (Salary Savings) from Personnel category to Operating Expenses and/or capital outlays. This was a budget transfer, between Personnel and other categories, with no increase in overall budget appropriations.
(2) Use of fund balance corresponds to use of revenues previously collected for approved carry-over expenditures and/or new approved appropriations approved by Council. This does not use City Reserve Funds.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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Note:

General Fund & Quality of Life total budget does not include Mid-Year Adjustment amounts. Total amounts represent adjusted budget to date only.

Current Economic Outlook (National, State, Regional & Local) & Revenue Analysis The Fiscal Year 2022-23 budget as adopted in June 2022, reflected a cautiously optimistic fiscal outlook, with steadily increasing revenues against the backdrop of an overall national and local economy moving past the impacts of Covid-19 pandemic. The City’s main revenues (Sales Tax, Quality of Life, Property Tax and Development related fees) all experienced healthy growth in the second half of FY2021-22. However, other macro-economic variables, including, but not limited to, geo-political conflict impacting the energy market, supply chain shortages, and growing inflation, also pointed to a potential economic slowdown in the upcoming future.

Between March and December 2022, the Federal Reserve raised rates seven times and indicated its intent to maintain high target rates until historically high inflation is slowed down to around 2%.

This in turn has started to impact key sectors of the economy, including housing and consumer spending. Most economists expect on the optimistic side slower growth than prior years and in some forecasts a mild, short-lived recession.

Nationally, the overall economy has generally averaged 2-3% annual GDP growth over the two years but is now showing signs of a slow-down in key sectors. Increased interest rates to help reign in inflation, have also slowed spending. Housing permits, consumer confidence, manufacturing data, and consumer spending reflect a general sentiment of potential recessionary activity in the upcoming months. For instance, the Conference Board Leading Economic Index (LEI) for the U.S. fell by 0.3% in January 2023. The U.S. LEI has maintained a downward trajectory for the last six months. Amongst the leading indicators are, deteriorating manufacturing new orders, consumers’ expectations of business conditions, and credit conditions. Nonetheless, other sectors of the economy, in particular the labor market (employment and personal income) continue to stay strong. Overall economic growth is forecast to be minimal in the upcoming months, under a mild recession or even in an optimistic scenario a “soft landing”.

State-wide, facing the same historical inflation as the rest of the country, California’s labor market has remained strong, reaching a record low of 3.8% in unemployment levels in September 2022 and at 4.1% in January 2023. Non-farm jobs grew by 3.2% annually, representing the largest growth since 2000. However, in development of its upcoming state budget, there is also consensus that the state economy will experience a slow-down in the second half of the fiscal year.

Regionally, the Inland Empire’s labor market has been resilient and has fully recovered to pre- pandemic levels. Transportation and warehousing have increased 4.1% since February 2020.

Other labor sectors including education and healthcare, administrative support, retail trade, professional, scientific and technical services, and leisure and hospitality have all recovered to pre-pandemic as well. Commercial real estate, including demand for warehousing and distribution space and even office retail space has continued to increase. This in turn has resulted in higher non-residential permitting activity compared to 2021, with the largest activity increases in retail City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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and industrial. On the residential side, increased mortgage rates have led to less home sales during 2022.

As the City moves through the second half of the current fiscal year, overall recommendations for adjustments are fiscally conservative. Within the City of Menifee, residential permitting activity during the first half of 2022 continued the upward trajectory of the previous fiscal year. However, from July 2022 through December 2022, permitting activity has slowed significantly.

The City’s top six (6) budgeted revenue sources for the General Fund, inclusive of Quality of Life (Measure DD) are listed in the table below. Together, these six (6) revenue sources represent

88.91% of the budgeted General Fund including Quality of Life revenues as adopted in June 2022.

TABLE 3: TOP 6 CITY REVENUES
Revenue Description Mid-Year Review/Analysis & Recommendations

1. Sales Tax Strong performance in first half of FY2022-23, month over month. Original adopted amount was conservative,
representing modest growth from the FY2021-22
Adjusted budget. Revised projections, incorporating
updated HdL projections and higher interest receipts,
increase revenue projections by $1,065,389 (+).

2. Quality of Life (Measure DD) Strong performance in first half of FY 2022-23, month over month. Original adopted amount was conservative,
representing modest growth from the FY 2021-22
Adjusted budget. Revised projections, incorporating
updated HdL projections and higher interest receipts,
increase revenue projections by $1,973,000 (+).

3. Property Tax Revised HdL projections received in January 2023 indicate property tax revenue for the FY 2022-23 remains strong, with 14.10% appreciation in taxable value from FY 2021-22. An increase of $230,997 (+) for regular property tax and $194,326 (+) (Fire tax) are included as part of the FY 2022-23 Mid-Year adjustments.

4. Building/Planning/Engineering/Fire
Fees (Development Fees)
Compared to FY 2021-22, in the first half of FY 2022-23, activity has notably decreased across development
activities (Building & Safety, Planning, Engineering and Fire). Accordingly, revenues are proposed to be
decreased down by 20%, or $2,567,000 (-).

5. Vehicle License Fee (VLF) Revised HdL projects reflect a slight increase in FY 2022- 23 VLF revenue projection of $139,560 (+).

6. Franchise Fees Solid Waste Franchise fees received for the first 2 quarters of FY 2022-23 are trending higher than originally forecast. Mid-Year 2022-23 forecast includes increase of $130,000 (+). Other franchise revenues (gas and
electricity) are collected later in the year. Cable TV
franchise revenues are trending slightly lower than
projected monthly average.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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Economic conditions will continue to be closely monitored and factored into the development of the Proposed Operating and Capital Budgets for the upcoming fiscal year, scheduled to be presented for adoption in June 2023. The following table provides an overall summary of some of the Key Economic Indicators incorporated as part of the Mid-Year review process.

TABLE 4: SUMMARY OF KEY ECONOMIC INDICATORS (NATIONAL, STATE, LOCAL) Indicator National State Regional/Local
GDP ( ) 1% Forecast for FY
2023-24, slower growth
--- ---
Unemployment (+) 3.4% Jan. 2023 (lowest
rate since 1969)

4.1% Dec. 2022
(record low in Sept. 2022)

4.3% / 3.9%
(growing labor force)
Inflation (+) 7.7% (October 2022)/

9.1% (June 2022)

7.5% (August 2022)/

8.3% (June 2022)

7.3% (Dec. 2022)/

9.4% (May 2022)
Residential Permits
( )

0.1% increase Dec.
2022 to Nov. 2022/

27.3% decrease from
January 2022

20.88% increase Dec. 2022 to
Nov. 2022/ 35.15% decrease
from June 2022 peak

36.1% (MFR)/

13.7% (SFR) from
2021 in first half of
2022
Note: Sources include, UCLA Economic Forecast (September 2022), UCR Inland Empire Regional Intelligence Report (Winter 2022), State of CA Budget 2023 (January 2023), U.S. Census Bureau and U.S. Department of Housing and Urban Development Monthly New Residential Construction (January 2023)., California Department of Finance Economic Update (February 2023), HdL January 2023 Property Tax and Sales Tax projections.

General Fund & Quality of Life Funds (Mid-Year Budget Recommendations) Revenue Adjustments
Based on the revenue analysis discussed in the preceding section relative to the City’s top six revenue sources, Staff is recommending the following adjustments to revenues for the General Fund and Quality of Life Funds as reflected in the table below (Table 5).

Expenditure Analysis & Adjustments
Overall, budgetary expenditures within the General Fund, including Quality of Life, are in line with their original budget projections. Mid-Year appropriation requests are reflective of critical positions needed for on-going operations.

The General Fund recommended Mid-Year Budget for Fiscal Year 2022-23 includes Revenue adjustment net increase of $1,276,755, and no expenditure appropriation adjustments from the 2022-23 Adjusted Budget (Current). The following table depicts the recommended adjustments by category within the General Fund.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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TABLE 5: FY2022-23 MID-YEAR ADJUSTMENT RECOMMENDATIONS (GENERAL FUND) General Operating Budget Year-to-Date (YTD) & Fund Balance Fund Type
Adopted
Budget
2022-23
Adjusted
Budget
2022-23
Mid-Year
Adjustments
Recommended
Adjusted
Budget with
Mid-Year
Adjustment
YTD Actuals
2022-23 as of
2/22/2023

Revenue:

Sales Tax $11,573,350 $11,573,350 $1,065,389 $12,638,739 $4,990,624 Property Tax 19,131,508 19,131,508 425,323 19,556,831 10,922,482 Development Fees 13,890,000 13,890,000 (2,567,000) 11,323,000 7,821,445 Vehicle License Fee 9,423,677 9,423,677 139,560 9,563,237 4,789,192 Franchise Fees 4,390,000 4,390,000 130,000 4,520,000 1,478,605 Other 9,524,738 12,032,238 2,083,483 14,115,721 8,912,419 Total Revenue $67,933,273 $70,440,773 $1,276,755 71,717,528 $38,914,767

Expenditures:

Personnel $31,884,335 $32,208,449 $ - $32,208,449 $18,221,511 Operating Expenses 27,512,701 32,778,041 - 32,778,041 7,928,500 Capital Outlays 142,250 293,607 - 293,607 124,203
Transfers & Allocations 7,793,987 7,793,987 - 7,793,987 7,793,987 Capital Projects (CIP) 600,000 12,462,985 - 12,462,985 1,470,061 Debt - - - - - Total Expenditures $67,933,273 $85,537,069 $0 $85,537,069 $35,538,263 Net Change in Fund
Bal. (Estimated)
$- ($15,096,296) $1,276,755 ($13,819,541) $3,376,504 Budgetary Fund
Bal. July 1, 2022
$22,047,847 $22,047,847 $22,047,847 $22,047,847
Projection thru
6/30/2023
($17,196,045)
Budgetary Fund
Bal. June 30, est.
$6,951,551 $6,951,551 $8,228,306 $8,228,306

Note:

Budgetary Fund Balance total amount of $6,951,551 does not include reserves in the amount of 35,823,601 encompassing the following: Committed Emergency Contingency, Economic Uncertainty Reserve, Unassigned Fund Balance Reserve, and various Assigned and Committed Reserve.

The Quality of Life recommended Mid-Year Budget revenue adjustment for Fiscal Year 2022-23 is $20,099,000, a total increase of $1,973,000, and a recommended $813,000 increase in expenditure appropriations for a revised expenditure budget of $33,107,580 from the 2022-23 Adjusted Budget (Current). The following table depicts the recommended adjustments by category within the Quality of Life Fund:

TABLE 6: FY2022-23 MID-YEAR ADJUSTMENT RECOMMENDATIONS (QUALITY OF LIFE) Quality of Life Budget Year-to-Date (YTD) & Fund Balance Fund Type
Adopted
Budget
2022-23
Adjusted
Budget
2022-23
Mid-Year
Adjustments
Recommended
Adjusted
Budget with
Mid-Year
Adjustment
2022-23
YTD Actuals
2022-23 as of
2/22/23

Revenue:

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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Sales Tax $18,111,000 $18,111,000 $1,863,000 $19,974,000 $7,934,050 Interest 15,000 15,000 110,000 125,000 103,616 Total Revenue $18,126,000 $18,126,000 $1,973,000 $20,099,000 $8,037,666

Expenditures:

Personnel $6,755,704 $6,755,704 $ - $6,755,705 $3,412,255 Operating Expenses 11,370,296 11,471,274 557,000 12,028,274 61,004 Capital Outlays - 1,740,541 256,409 1,996,950 385,855
Transfers & Allocations - - - - -
Capital Projects (CIP) - 12,326,651 - 12,326,651 116,492 Debt - - - - -
Total Expenditures $18,126,000 $32,294,171 $813,409 $33,107,580 $3,975,606 Net Change in Fund Bal.
(Estimated)
- (14,168,171) $1,159,591

(13,008,580) 4,062,060
Budgetary Fund
Bal. July 1, 2022 17,122,824 17,122,824 17,122,824 17,122,824 Year End
Projection thru
6/30/2023
(17,070,640)
Budgetary Fund
Bal. June 30, est. $17,122,824

$2,954,653 $4,114,244 $4,114,244

Note: Budgetary Fund Bal. includes Assigned Reserve for CIP 13-04 Bradley Bridge in the amount of $223,873, to be used once construction of project begins. Estimated unassigned balance at 6/30/2023 is $3,890,371.

Personnel/Mid-Year Requests:

Personnel expenditures year-to-date actuals are 55.56% of the Adjusted Budget for General Fund and Quality of Life.

The Fiscal Year 2022-23 budget currently includes a total of 316.40 full-time equivalent personnel. From July 2022 through January 2022 total of one (1) additional position was added and nine (9) were reclassified/updated under the authority of the City Manager, as personnel changes within the approved budget funding.

As part of the Mid-Year process, departments reviewed organizational structure and operations to identify critical staffing needs. Staff is requesting approval of an additional four (4) positions at this time.

TABLE 7: FY2022-23 MID-YEAR PERSONNEL REQUESTS
No. Department Position
Title
FY2022-23
Mid-Year
Appropriation
Request
Prorated
FY2022-23 Total
Personnel
Costs (1)
Justification
1 Community
Services/ Facilities
(ISF) (1)
Field
Supervisor
$ - $ 43,798 Operational Need – increase oversight of City facilities. City’s
facilities have expanded,
including fire stations and PD
sites. Full Year Cost FY2023-
24: $145,147.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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No. Department Position
Title
FY2022-23
Mid-Year
Appropriation
Request
Prorated
FY2022-23 Total
Personnel
Costs (1)
Justification
2 Police Detective - 54,306 Operational Need – increase investigative support. Full Year
Cost FY2023-24: $193,929.
3 Police School
Resource
Officer
(SRO)
- 54,306 Existing MOU with Perris Union
High School District. A total of 2
SRO positions are included with
the MOU. PUHSD reimburses
the City for one of the SRO
position. Full Year Cost
FY2023-24: $193,929.
4 Economic
Development (1)
Office
Specialist II
- 27,071 Provide necessary
administrative support to
Economic Development to
accommodate increased
department operations/programs
and replacement of current
interns. Full Year Cost FY2023-
24: $88,601.

TOTAL $ - $ 179,481
Note:
(1) No additional expenditure appropriation needed in the current year, as other budget savings accomplished during the year accommodate the additional expenses needed for the balance of the year. On-going revenue increases in General Fund and Quality of Life revenues include capacity to absorb these additional four (4) positions in the upcoming years.

Operations & Maintenance/Mid-Year Requests:

Budgeted costs are trending within budget. Operations & Maintenance expenditures year-to-date actuals are 18.21% of the Adjusted Budget for General Fund and Quality of Life. Larger expenses, such as Dispatch Services and Fire Services are anticipated to be received later in the fiscal year, and are therefore not yet realized. There are no requests for appropriations from the General Fund at this time. There is an appropriation request for $557,000 from Quality of Life funds to cover the additional increase in the Fire Services Agreement pursuant to the labor negotiations completed between Fire personnel and the State in 2022.

TABLE 8: FY2022-23 MID-YEAR OPERATIONS & MAINTENANCE REQUESTS No. Department Position Title Increase/(Decrease) Justification 1 Fire Fire Services Contract
Increases
$ 557,000 Increase from State
Labor Negotiations
for FY 2022-23
TOTAL $ 557,000
Other Operational Adjustments:

Other operational adjustments such as insurance and part-time wage increases were reviewed and analyzed and will be absorbed within the current year budget through salary savings. Items will also be incorporated within the next fiscal year’s budget 2023-24.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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Capital Outlay/Mid-Year Requests:

Capital Outlays expenditures year-to-date actuals are 25.07% of the Adjusted Budget for General Fund and Quality of Life. Larger capital outlays, such as vehicle purchases, have seen a delayed realization of expenditures due to supply shortages. This Mid-Year includes corresponding capital costs associated with the personnel requests discussed within the Personnel section of the report.

TABLE 9: FY2022-23 MID-YEAR PERSONNEL REQUESTS (CAPITAL OUTLAYS/EQUIPMENT) No. Department Position
Title
FY22/23 Mid-
Year Request
FY22/23 Total
Capital Costs
Justification
2 Police Detective $129,771 $129,771 Equipment (Vehicle, Body Worn Camera, etc)
3 Police School
Resource
Officer
(SRO)
126,638 126,638 Equipment (Vehicle, Body
Worn Camera, etc)
TOTAL $ 256,409 $ 256,409
Special Revenue & Other Funds (Mid-Year Budget Recommendations) Special Revenue and Other Funds sources recommended FY2022-23 Mid-Year Budget adjustments include increases of $12,504,619 in revenues and $210,242 in additional expenditure appropriations. The expenditure appropriation requests include the following:

- Additional appropriations of $48,000 for technology capital outlays (CCTV and Card access at the Public Works Maintenance and Operations Center (MOC), additional software licenses.)
- Annual Library Fee reimbursements costs of $50,000 due to the County of Riverside - Additional appropriations of $112,242 to accommodate increased utility costs projected across various special districts (LLMDs, CFDs) for the balance of fiscal year based on year-to-date trends.

With respect to recommended revenue adjustment increases, the two (2) largest increases are represented by the following:
- Corresponding carry-overs of TUMF related revenues ($8.4 million) to align with previously carried over expenditures; and
- Increased Development Impact Fees (DIF) revenue ($3.1 million increase) based on year- to-date trends.

The following table details the various the recommended adjustments (revenues and/or expenditure appropriations) for the Special Revenue and Other Funds:

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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TABLE 10: FY2022-23 MID-YEAR ADJUSTMENT RECOMMENDATIONS (SPECIAL REVENUE & OTHER FUNDS)
Fund Category Type Revenue
Adjustment ($)
Expenditure
Adjustment ($)
Justification/Explanation
Internal Service Funds (ISF) $12,010 $48,000 Higher interest revenue, and appropriations for
Technology capital outlays
(CCTV and Card Access
for PW MOC) and software
licenses.

Gas Tax & Other Special
Revenue Funds

8,424,480

-
Corresponding carry-
overs of TUMF related
revenues to align with
previously carried over
expenditures (Budget and
encumbrances)
LLMD Funds
14,360

78,403
Higher interest revenue
receipts based on YTD
actuals.

Additional appropriations
in several special districts
for higher year to date
actuals on utilities.

CFD Funds (Maintenance)
26,328

33,839
Higher interest revenue
receipts based on YTD
actuals.

Additional appropriations
in several special districts
for higher YTD actuals on
utilities.

CFD Funds (Infrastructure) 849,139 - Based on YTD Actuals CSA Funds
5,426

-
Higher interest revenue
receipts based on YTD
actuals.

DIF/Quimby/RBBD Funds
3,172,875

50,000
Overall YTD actuals.
revenues are trending
higher than budgeted.

Additional appropriation in
Fund 513 Library DIF for
annual library
reimbursement costs due.

TOTAL: $12,504,619 $210,242
Capital Improvement Program (CIP) Review & Update
At budget adoption, the Fiscal Year 2022-23 CIP program included a total of twenty-five (25) projects and a funding totaling $18,329,003. Including Fiscal Year 2022-23 Mid-Year Requests, City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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the CIP Budget would be updated to reflect the following:

TABLE 11: FY 2022-23 ADOPTED vs. FY 2022-23 ADJUSTED BUDGET (CIP) UPDATE No. Project Category No. of
Original
Projects
FY2022-23
Adopted Budget:

Project Costs
No. of Active
Projects
FY2022-23
Adjusted Budget:

Project Costs
1 Transportation 6 $10,626,766 11 $59,287,335
2 Traffic Signals 2 304,201 7 4,351,208
3 Street Improvements 3 500,626 8 2,653,574
4 Pavement Management 6 4,284,410 9 9,814,857
5 Drainage - - - -
6 Streetlight 1 100,000 1 100,000
7 Public Facilities 3 1,963,000 12 17,712,006
8 Parks, Trails and
Recreation
4 550,000 15 5,346,827
9 Reports & Plans - - 1 37,926
10 Information Technology - - 1 1,125,000
Total 25 $18,329,003 65 $100,428,734
In total, the Fiscal Year 2022-23 CIP Budget, inclusive of: (1) the current year adopted budget funding, (2) additional appropriations requests since July 1, 2022, (3) Fiscal Year 2022-23 Mid- Year requests discussed above and prior year budget carry-over and (4) additional appropriations for on-going projects will be $100,428,734.

In summary, the following updates have occurred from July 2022 through February 2023:
- Budget Carryover of $75,583,999 (encumbrances and appropriated budget) for previously approved CIP projects underway.
- Formal addition of CIP 23-14: ERP Project Implementation as approved by City Council on 2/15/23. Previous budget of $1,125,000 was previously carried forward. - Additional budget appropriations totaling $6,515,732, for the following Projects (listed in the following table):

TABLE 12: ADDITIONAL CIP APPROPRIATIONS THRU FEBRUARY 1, 2023 Council Date Project Appropriation Amount
($)
9/21/2022 CIP 17-01: Evans Pump Track $304,344
9/21/2022 Leon Rd PMP (Micro-surfacing Project) 60,000
10/19/2022 CIP 13-03: Holland Rd. Overpass 671,614
10/19/2022 CIP 21-04: Fire Station #5 3,184,774
11/16/2022 CIP 22-06: Murrieta Rd Resurfacing Project 80,000 2/1/2023
CIP 23-13: Bank of America Property Acquisition and Tenant Improvements 2,215,000
TOTAL $6,515,732
American Rescue Plan (ARP) Funds
City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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As presented in June 2022, the City has received just over $13 million in direct federal assistance as part of the American Rescue Plan (ARP) program. Funding is to be used to address the impacts of Covid-19.

As of February 1, 2023, the remaining available balance of ARP funds is $2,531,369. The FY2022-23 Mid-Year recommendations do not include recommended use of additional ARP funds. As the City navigates the impacts of Covid-19, short and long-term, the City’s plan and strategy for the use of these funds is a phased-in approach/plan and to maximize the use of the funding that truly meets the needs of the community. Cognizant of the requirements to expend all funding by December 2024, the City’s approach is fiscally conservative.

Fiscal Policy and Strategic Plan/Long-Term Financial Planning Year to Year, and even in times of economic prosperity, the City’s concerted approach to its spending plans has been that of fiscal prudence and thinking of the needs of the Menifee community now and in the future. Long-term financial planning essentially combines (1) financial forecasting with financial strategy to identify future challenges and opportunities, (2) fiscal imbalances and (3) strategies to secure financial sustainability. Therefore, in the City’s budgetary oversight and implementation of the City’s vision to build a safe, thriving and premier place to live, work and call home, the city consciously budgets with key strategies, policies and tools in mind. •Structurally Balanced Budget / Strategic Plan: The City aims to develop a structurally balanced budget where recurring revenues match recurring expenditures. The City also develops an over-all budget that reflects and aligns with the strategic plan, objectives, goals and priorities, provides conservative estimates of revenue and expenditures, and provides actual revenue/expenditure history to assist with future forecasts and projections anchored to a 5-year financial forecast. A budget forecast is essentially a financial plan projecting revenue and expenditures for a defined period of time. •10-year Financial Forecast - The City has recently expanded efforts in using analytics to take a long-view through the lens of a rolling 10-year financial forecast model. Taking the longer view will help the City better respond to an unforeseen financial crisis, bring financial perspective to planning, stimulate long-term thinking, address a particular issue or proposal, and heighten financial discipline and sustainability. •Reserve Policy: In September 2021, the City Council adopted an updated reserve fund balance policy to set aside funds for future emergencies. This policy establishes a minimum 12.5% fund balance reserve for natural disasters and catastrophic events; a

12.5% reserve for economic slowdown due to the onset of a recession or other economic crisis; and a 10% reserve to offset the timing of grant reimbursements and the collections of property taxes. Pursuant to the adopted policy, the City plans to review the policy every three (3) years, and tentatively has considered increasing the reserve fund percentage to 40% in FY 2024-25.

City of Menifee Staff Report
Fiscal Year 2022-23 Mid-Year Budget Adjustments and Review, Including a Capital Improvement Program Status Update
March 1, 2023

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•Unfunded Pension Liability: The City proactively pays off any annual unfunded pension liability adjustments and currently does not have any outstanding unfunded pension liability balance.
•Infrastructure Needs: With an adopted five (5) year CIP Program which identifies over 150 projects, estimated at nearly $577 million, the City continues to strategize on funding the wide range of infrastructure needs, year by year.

Capital Asset Financing: The City enters into long-term financing arrangements only in the case where funding may be necessary to purchase or lease a long-term strategic asset.

STRATEGIC PLAN OBJECTIVE
Regular City Business

FISCAL IMPACT
Summary of Revenue & Expenditures by Fund Type
Table 13 provides an overall summary of all revenue and expenditure Mid-Year Adjustments requests by fund type and amount.

TABLE 13: FY2022-23 MID-YEAR ADJUSTMENT RECOMMENDATIONS Fund Category Proposed FY2022-23
Revenue Adjustments
Proposed FY2022-23
Expenditure Adjustments
General Fund 1,276,755 - Quality of Life Fund 1,973,000 813,409 Internal Service Funds (ISF) 12,010 48,000 Gas Tax & Other Special Revenue Funds 8,424,480 - LLMD Funds 14,360 78,403 CFD Funds (Maintenance) 26,328 33,839 CFD Funds (Infrastructure) 849,139 - CSA Funds 5,426 - DIF/Quimby/RBBD Funds 3,172,875 50,000 TOTAL $15,754,374 $1,023,651

ATTACHMENTS

1. Attachment 1: Listing of FY2022-23 Budget Amendment Resolutions (BARs) Items through February 1, 2023

2. Attachment 2: Listing of FY2022-23 Budget Amendments Resolutions (BARs) Item thru 2-1- 2023

2. A Resolution approving the Authorized Position Listing as of 3/1/2023

3. Budget Amendment Resolution (BAR) approving FY2022-23 Mid-Year Adjustments Attachment 1: Listing of FY2022-23 Budget Amendments Resolutions (BARs) Items thru 2-1-2023 # Staff Report Item Description City Council Date
Revenue
Appropriation
Expenditure
Appropriation
1 CFD 2017-1 Budget Appropriations 7/20/2022 $19,361 $19,361 2 CIP 21-03: Fire Station #68 7/20/2022 329,429 427,104 3 CIP 17-02: Lyle Marsh Restrooms 8/3/2022 44,805 4 SB1383 Grant (Community Services) 8/3/2022 141,516 5 Peregrine Software (Menifee PD) 8/17/2022 100,000 6 Leon Rd (Microresurfacing Project) PMP 9/21/2022 60,000 7 CDBG Funding 9/21/2022 20,051 16,445 8 Clean Air Microgrant (Community Services) 9/21/2022 1,000 1,000 9 CIP 17-01: Evans Pump Track 9/21/2022 304,344 10 Specialized Transit Program (CS Department) 9/21/2022 150,000 150,000 11 CSD Vans (CS Department) 10/5/2022 12,666 12 CIP 13-03: Holland Rd. Overpass 10/19/2022 10,255,000 27,423,773 13 CIP 13-03: Holland Rd. Overpass (Sewer) 10/19/2022 500,000 815,000 14 CIP 21-04: Fire Station #5 10/19/2022 1,000,000 8,840,636 15 CIP 22-20 & CIP 22-21: Sun City Community Pedestrian & Lazy Creek Pedestrian Project 10/19/2022 272,267 767,503 16 M.E.N.U Grant Program (Economic Development) 10/19/2022 500,000 500,000 17 MENIFEE PD: DOJ Bulletproof Grant 11/2/2022 5,119 5,119 18 2021 PLHA Grant 11/16/2022 391,071 391,071 19 ARP: Mass Notification System 11/16/2022 120,000 120,000 20 CIP 22-06: Murrieta Rd Resurfacing Project 11/16/2022 1,715,098 21 CIP 22-17: Antelope Rd/MSJC Traffic Signal Project 11/16/2022 228,407 765,671 22 CS: Edible Food Recovery Program 11/16/2022 241,360 241,360 23 CEQA Appropriations 12/7/2022 2,500,000 2,500,000 24 OTS Grant (Menifee PD) 12/7/2022 109,000 109,000 25 FY21/22 Budget Carry-Overs 12/7/2022 2,532,308 21,981,863 26 Street Sweeping Equipment 12/7/2022 250,000 27 CIP 23-13: ARP- Bank of America Property 2/1/2023 2,215,000 2,215,000 28 NIBIN System (Menifee PD) 2/1/2023 233,856 $21,389,373 $70,152,191
FY22/23 Purchase Orders Carry-Overs(1) $0 $24,045,480
Transfers In & Transfers Out
- ARPA to Capital Project Fund (Fire Station #5) $1,000,000 $1,000,000 - ARPA to Capital Project Fund (Holland Sewer) 500,000 500,000 - Grant Fund to General Fund (Edible Food Program)(2) 7,500 Total Transfers In & Transfers Out $1,507,500 $1,500,000 CFD's (Facilities)(Non City Debt)
CFD 2019-1 (Meadow Run), CFD 2021-1 (McCall Mesa) $114,600 TOTAL FY22-23 Adjustments to Adopted Budget $22,896,873 $95,812,270 (1) Existing contracts/purchase orders (POs) where work/services commenced prior to Fiscal Year 2022/23, and that will continue into the new fiscal year, are authorized to be carried forward as part of the new year budget adoption process. Pursuant to the accompanying budget adoption resolution, outstanding encumbrances can be carried forward to the next succeeding budget year upon approval of the City Manager.

Total BARs
(2) $7,500 from CalRecycle Edible Food Program will be used to fund existing personnel. No additional personnel expenditure appropriations resulting from program. Funds will offset General Fund expenses.

RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA,

ADOPTING THE CLASSIFICATION AND COMPENSATION PLAN FOR THE CITY OF MENIFEE FOR FISCAL YEAR 2022-2023

WHEREAS, it is necessary to amend the City’s Classification and Compensation plan from time to time to maintain a current plan which reflects the organizational structure, workload, or otherwise; and

WHEREAS, the Classification and Compensation Plan has been updated to reflect changes in the Fiscal Year 2022-23 Mid-Year Budget adjustments; and

WHEREAS, the Classification and Compensation Plan, including the schedule of authorized positions, attached hereto, is hereby adopted pursuant to Section 45001 of the California Government Code; such list is attached to this Resolution as “Exhibit A” and incorporated herein by this reference; and

WHEREAS, the changes to the Classification and Compensation Plan as related to the budget require Council approval; and

WHEREAS, the Classification and Compensation Plan shall become ef fective March 1, 2023, and may be, thereafter, amended; and

WHEREAS, the City Manager shall implement the attached Classification and Compensation Plan and has the authority to select and appoint employees in accordance with the City’s Personnel Rules and Regulations; and

WHEREAS, the City Manager In accordance with the City of Menifee Municipal Code Section 2.08.060(B), shall administer the City personnel system; this resolution specifically authorizes the City Manager to establish, fix and alter job cla ssifications incl uding titles, descriptions, compensation and number of positions in the Classification and Compensation Plan as needed, subject to the total personnel expenditure budget limitations approved by the City Council, and in accordance with the provisions of Gov. Code 3500 et. seq., if applicable; and

WHEREAS, all prior resolutions and parts of this resolution in conflict with this resolution are hereby rescinded.

NOW, THEREFORE, BE IT RESOLVED that the City of Menifee, California, does hereby DETERMINE and ORDER as follows:

SECTION 1: The City Council hereby does adopt the Classification and Compensation Plan effective March 1, 2023 as presented herewith.

PASSED, APPROVED AND ADOPTED this 1st day of March, 2023.

Bill Zimmerman, Mayor

ATTEST: APPROVED AS TO FORM:

Kay Vinson, Acting City Clerk Jeffrey T. Melching, City Attorney "EXHIBIT A"
Effective 03/01/2023
Department Title Classification Group FTE Step From Step To Council Council Member Elec Elected n/a n/a 7,800.00 $
Council Council Member Elec Elected n/a n/a 7,800.00 $
Council Council Member Elec Elected n/a n/a 7,800.00 $
Council Council Member Elec Elected n/a n/a 7,800.00 $
Council Mayor Elec Elected n/a n/a 9,000.00 $

City Exective Office City Manager Contract 1.0 n/a - n/a 272,929 $ City Exective Office Assistant City Manager Contract 1.0 625 191,024$ 675 245,127$ City Exective Office Deputy City Manager Conf 1.0 615 181,731$ 665 233,201$ City Exective Office Public Information & Legislative Affairs Officer Conf 1.0 535 121,939$ 585 156,475$ City Exective Office Assistant to the City Manager Conf 1.0 525 116,007$ 575 148,863$ City Exective Office Management Analyst Conf 1.0 443 77,066$ 493 98,894$ City Exective Office Media & Production Coordinator Gen 1.0 432 72,952$ 482 93,614$ City Exective Office Public Information Specialist Gen 1.0 405 63,761$ 455 81,820$ City Exective Office Media Specialist Gen 1.0 405 63,761$ 455 81,820$ City Exective Office Executive Assistant Conf 1.0 387 58,286$ 437 74,794$

Building and Safety Building Official Mid 1.0 547 129,460$ 597 166,126$ Building and Safety Building/Safety Manager Mid 1.0 525 116,007$ 575 148,863$ Building and Safety Plans Examiner Gen 2.0 443 77,066$ 493 98,894$ Building and Safety Senior Building Inspector Gen 1.0 443 77,066$ 493 98,894$ Building and Safety Management Analyst Prof 1.0 443 77,066$ 493 98,894$ Building and Safety Permit Center Coordinator Prof 1.0 432 72,952$ 482 93,614$ Building and Safety Building Inspector Gen 4.0 420 68,714$ 470 88,176$ Building and Safety Building Permit Technician Gen 3.0 395 60,659$ 445 77,839$ Building and Safety Office Specialist II Gen 1.0 318 41,315$ 368 53,016$

City Clerk City Clerk Exec 1.0 579 151,862$ 629 194,874$ City Clerk Assistant City Clerk Prof 1.0 462 84,727$ 512 108,724$ City Clerk Management Analyst Prof 1.0 443 77,066$ 493 98,894$ City Clerk Administrative Assistant Gen 1.0 367 52,753$ 417 67,694$ City Clerk Records Technician Gen 1.0 347 47,745$ 397 61,267$ City Clerk Receptionist Gen 1.0 284 34,871$ 334 44,747$

Code Enforcement Code Enforcement Supervisor Prof 1.0 449 79,408$ 499 101,898$ Code Enforcement Senior Code Enforcement Officer Gen 2.0 430 72,228$ 480 92,685$ Code Enforcement Code Enforcement Officer II Gen 2.0 409 65,046$ 459 83,468$ Code Enforcement Code Enforcement Officer I Gen 1.0 387 58,286$ 437 74,794$ Code Enforcement Code Enforcement Technician Gen 1.0 367 52,753$ 417 67,694$ Code Enforcement Office Specialist II Gen 1.0 318 41,315$ 368 53,016$

Community Development Community Development Director Contract 1.0 605 172,889$ 655 221,856$ Community Development Planning Manager Mid 1.0 547 129,460$ 597 166,126$ Community Development Principal Planner Mid 2.0 516 110,914$ 566 142,328$ Community Development Senior Planner Prof 2.0 481 93,148$ 531 119,531$ Community Development Senior Management Analyst Prof 1.0 481 93,148$ 531 119,531$ Community Development Associate Planner Gen 3.0 449 79,408$ 499 101,898$ Community Development Management Analyst I Prof 1.0 443 77,066$ 493 98,894$

CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2022-2023
Annual Salary Ranges
FY22/23 Mid-Year RequestNew Positions ApprovedFY22/23 Personnel Addition orReclassification Approved Under CM Authority "EXHIBIT A"
Effective 03/01/2023
Department Title Classification Group FTE Step From Step To

CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2022-2023
Annual Salary Ranges
FY22/23 Mid-Year RequestNew Positions ApprovedFY22/23 Personnel Addition orReclassification Approved Under CM Authority Community Development Management Aide (Part-Time)(Limited Term) PT 0.5 405 63,761$ 455 81,820$ Community Development Assistant Planner Gen 2.0 430 72,228$ 480 92,685$ Community Development Planning Technician Gen 1.0 395 60,659$ 445 77,839$ Community Development Administrative Assistant Gen 1.0 367 52,753$ 417 67,694$

Community Services Community Services Director Contract - 605 172,889$ 655 221,856$ Community Services Park/Landscape Maintenance Manager Mid 1.0 525 116,007$ 575 148,863$ Community Services Community Services Manager Mid 1.0 525 116,007$ 575 148,863$ Community Services Sr. Management Analyst Prof 1.0 481 93,148$ 531 119,531$ Community Services Community Services Supervisor Prof 1.0 449 79,408$ 499 101,898$ Community Services Management Analyst I Prof 1.0 443 77,066$ 493 98,894$ Community Services Field Supervisor (Parks/Landscape) Prof 1.0 420 68,714$ 470 88,176$ Community Services Field Supervisor (Facilities) Prof 1.0 420 68,714$ 470 88,176$ Community Services Community Services Coordinator Gen 4.0 383 57,135$ 433 73,317$ Community Services Park Ranger Gen 2.0 383 57,135$ 433 73,317$ Community Services Sr. Park Maintenance Worker Gen 1.0 377 55,450$ 427 71,155$ Community Services Sr. Facility Maintenance Worker Gen 1.0 377 55,450$ 427 71,155$ Community Services Administrative Assistant Gen 1.0 367 52,753$ 417 67,694$ Community Services Park Maintenance Worker II Gen 6.0 360 50,943$ 410 65,371$ Community Services Facilities Maintenance Worker II Gen 1.0 360 50,943$ 410 65,371$ Community Services Office Aide (Part-Time) PT 0.5 269 30,206$ 319 46,850$ Community Services Community Services Specialist (Part-Time) PT 2.3 326 42,997$ 376 46,850$ Community Services Part Time Leader, Instructor, Maintenance(Full Time Equivalents)PT 22.65 N/A 32,242$ N/A 46,403$

Economic Development Economic Development Director Contract 1.0 595 164,478$ 645 211,062$ Economic Development Sr. Management Analyst Prof 1.0 481 93,148$ 531 119,531$ Economic Development Management Aide Gen 2.0 405 63,761$ 455 81,820$ Economic Development Office Specialist II Gen 1.0 318 41,315$ 368 53,016$

Finance Chief Financial Officer Contract 1.0 605 172,889$ 655 221,856$ Finance Deputy Finance Director Contract 1.0 564 140,916$ 614 180,826$ Finance Finance Manager Mid/Conf 2.0 534 121,332$ 584 155,697$ Finance Principal Accountant Mid 1.0 516 110,914$ 566 142,328$ Finance Financial Analyst Prof 1.0 481 93,148$ 531 119,531$ Finance Senior Accountant Prof 1.0 481 93,148$ 531 119,531$ Finance Senior Accountant/Budget & Grants Analyst Prof 1.0 481 93,148$ 531 119,531$ Finance Accountant II Prof - 462 84,727$ 512 108,724$ Finance Accountant I Prof - 443 77,066$ 493 98,894$ Finance Accountant Trainee Gen 1.0 405 63,761$ 455 81,820$ Finance Contract/Purchasing Specialist Gen 1.0 405 63,761$ 455 81,820$ Finance Senior Accounting Technician Gen 2.0 396 60,962$ 446 78,228$ Finance Accounting Technician II Gen 2.0 377 55,450$ 427 71,155$ Finance Contract/Purchasing Technician II Gen 1.0 377 55,450$ 427 71,155$ Finance Administrative Assistant Gen 1.0 367 52,753$ 417 67,694$ Finance Contract/Purchasing Technician I Gen 1.0 354 49,441$ 404 63,444$ Finance Accounting Technician I (Business License) Gen 1.0 354 49,441$ 404 63,444$ Finance Accounting Technician I Gen 1.0 354 49,441$ 404 63,444$ Finance Accounting Assistant Gen 1.0 330 43,863$ 380 56,286$ "EXHIBIT A"
Effective 03/01/2023
Department Title Classification Group FTE Step From Step To

CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2022-2023
Annual Salary Ranges
FY22/23 Mid-Year RequestNew Positions ApprovedFY22/23 Personnel Addition orReclassification Approved Under CM Authority Finance Cashier Gen 1.0 318 41,315$ 368 53,016$ Human Resources Deputy Human Resources Director Contract 1.0 564 140,916$ 614 180,826$ Human Resources Human Resources Manager Conf 1.0 534 121,332$ 584 155,697$ Human Resources Human Resources Analyst Conf 2.0 462 84,727$ 512 108,724$ Human Resources Emergency Management Analyst Conf 1.0 443 77,066$ 493 98,894$ Human Resources Risk/Emergency Management Technician Conf 1.0 377 55,450$ 427 71,155$ Human Resources Human Resources Technician Conf 2.0 377 55,450$ 427 71,155$ Human Resources Office Specialist II Conf 1.0 318 41,315$ 368 53,016$ Information Technology Chief Information Officer Contract 1.0 605 172,889$ 655 221,856$ Information Technology Information Technology Manager Conf 1.0 525 116,007$ 575 148,863$ Information Technology Geographic Information System Coordinator Conf 1.0 481 93,148$ 531 119,531$ Information Technology Audio Visual (AV) System Coordinator Conf 1.0 481 93,148$ 531 119,531$ Information Technology Information Technology Analyst Conf 3.0 462 84,727$ 512 108,724$ Information Technology Management Analyst II Conf 1.0 462 84,727$ 512 108,724$ Information Technology Information Technology Technician Conf 3.0 396 60,962$ 446 78,228$ Information Technology Geographic Information System Technician Conf 2.0 396 60,962$ 446 78,228$ Information Technology Audio Visual (AV) System Technician Conf 1.0 396 60,962$ 446 78,228$ Fire Senior Fire Permit Technician Gen 1.0 420 68,714$ 470 88,176$ Fire Office Specialist II Gen 1.0 318 41,315$ 368 53,016$ Police Chief of Police Contract 1.0 PC625 192,934$ PC675 247,578$ Police Police Captain PMA 2.0 P587 149,014$ P637 191,219$ Police Police Lieutenant PMA 4.0 P557 128,305$ P607 164,645$ Police Police Support Services Manager Mid 1.0 525 116,007$ 575 148,863$ Police Police Sergeant PMA 12.0 P518 105,624$ P568 135,541$ Police Budget and Grants Analyst Prof 1.0 481 93,148$ 531 119,531$ Police Senior Police Personnel & Training Analyst Conf 1.0 481 93,148$ 531 119,531$ Police Crime Analyst Prof 1.0 462 84,727$ 512 108,724$ Police Police Officer POA 74.0 P467 81,902$ P517 105,102$ Police Police Records Supervisor Prof 1.0 430 72,228$ 480 92,685$ Police Sr. Community Service Officer PEA Misc 1.0 429 71,869$ 479 92,224$ Police Crime Scene/Property & Evidence Specialist PEA Misc 2.0 420 68,714$ 470 88,176$ Police Community Service Officer II PEA Misc 6.0 409 65,046$ 459 83,469$ Police Investigative Specialist II PEA Misc 4.0 409 65,046$ 459 83,469$ Police Executive Assistant Conf 1.0 387 58,286$ 437 74,794$ Police Sr. Police Records Technician PEA Misc 1.0 397 61,267$ 447 78,619$ Police Property Room Technician PEA Misc 1.0 377 55,450$ 427 71,156$ Police Police Records Technician PEA Misc 5.0 377 55,450$ 427 71,156$ Police Administrative Assistant PEA Misc 1.0 367 52,753$ 417 67,694$ Public Works/Engineering Director of Public Works and Engineering Contract 1.0 605 172,889$ 655 221,856$ Public Works/Engineering Deputy Director of Public Works/City Engineer Contract 1.0 570 145,196$ 620 186,319$ Public Works/Engineering Assistant City Engineer Mid 1.0 547 129,460$ 597 166,126$ Public Works/Engineering Principal Engineer Mid 2.0 534 121,332$ 584 155,697$ Public Works/Engineering Public Works Manager Mid 1.0 525 116,007$ 575 148,863$ Public Works/Engineering Construction Manager Mid 1.0 516 110,914$ 566 142,328$ Public Works/Engineering Senior Engineer (Part-Time) Prof 0.5 504 104,471$ 554 134,060$ "EXHIBIT A"
Effective 03/01/2023
Department Title Classification Group FTE Step From Step To

CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2022-2023
Annual Salary Ranges
FY22/23 Mid-Year RequestNew Positions ApprovedFY22/23 Personnel Addition orReclassification Approved Under CM Authority Public Works/Engineering Senior Engineer Prof 3.0 504 104,471$ 554 134,060$ Public Works/Engineering Associate Engineer Gen 5.0 481 93,148$ 531 119,531$ Public Works/Engineering Financial Analyst Prof 1.0 481 93,148$ 531 119,531$ Public Works/Engineering Senior Public Works Inspector Gen 1.0 462 84,727$ 512 108,724$ Public Works/Engineering Fleet & Equipment Supervisor Prof 1.0 449 79,408$ 499 101,898$ Public Works/Engineering Public Works Maintenance Supervisor Prof 1.0 449 79,408$ 499 101,898$ Public Works/Engineering Assistant Engineer Gen 2.0 443 77,066$ 493 98,894$ Public Works/Engineering Management Analyst I Prof 2.0 443 77,066$ 493 98,894$ Public Works/Engineering Public Works Inspector II Gen 1.0 430 72,228$ 480 92,685$ Public Works/Engineering Senior Fleet Technician Gen 1.0 420 68,714$ 470 88,176$ Public Works/Engineering Public Works Inspector I Gen 2.0 409 65,046$ 459 83,468$ Public Works/Engineering Fleet Technician Gen 1.0 395 60,659$ 445 77,839$ Public Works/Engineering Engineering Technician I Gen 2.0 395 60,659$ 445 77,839$ Public Works/Engineering Senior Street Maintenance Worker Gen 2.0 377 55,450$ 427 71,155$ Public Works/Engineering Administrative Assistant Gen 2.0 367 52,753$ 417 67,694$ Public Works/Engineering Street Maintenance Worker II Gen 8.0 360 50,943$ 410 65,371$ Public Works/Engineering Fleet Services Worker I Gen 1.0 340 46,106$ 390 59,165$ Public Works/Engineering Street Maintenance Worker I Gen 2.0 340 46,106$ 390 59,165$ Public Works/Engineering Office Specialist II Gen 1.0 318 41,315$ 368 53,016$ TOTAL BUDGETED POSITIONS 320.40
Group Key:

Elec: Elected
Appt: Appointed
Nonrep: Non-Represented
Conf: Confidential
Mid: Mid-Management
PMA: Police Management
POA: Police Officers
PEA Misc: Police Employee Miscellaneous Unit
Prof: Professional
Gen: General
PT: Part-Time
RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2022/23 OPERATING BUDGET
WHEREAS, the City of Menifee, California adopted a budget for the fiscal year 2022/23 with Resolution No. 22-1157 on October 19th, 2022; and
WHEREAS, from time to time the City of Menifee receives unanticipated revenues, experiences unanticipated expenditures, and/or identifies alternative funding sources; and WHEREAS, it is in the best interest of the citizens of the City of Menifee to allocate budget resources to continue the operations of the City of Menifee; and WHEREAS, the City Council of the City of Menifee needs to amend the fiscal year 2022/23 budget as follows:

AMENDMENTS TO ADOPTED BUDGET:

1.Record Revenue Estimate(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
March 1, 2023 FY2022/23 Mid-Year Budget
Adjustments
Various
$15,754,374
TOTAL: $15,754,374
Increase FY 2022/23 Revenue Budget: $15,754,374

2.Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
March 2, 2023
FY2022/23 Mid-Year Budget
Adjustments Various $1,023,651
TOTAL: $1,023,651
Increase FY 2022/23 Expenditure Budget: $1,023,651

2. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL:

Amending the Fiscal Year 2022/23 Budget
FY 2022/23 Mid-Year Adjustments
2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS:

The annual budget for the City of Menifee for fiscal year 2022-23 is hereby increased and amended to reflect carryover revenues and expenditures as follows:

Fund Category Proposed FY2022-23
Revenue Adjustments
Proposed FY2022-23
Expenditure Adjustments
General Fund 1,276,755 - Quality of Life Fund 1,973,000 813,409 Internal Service Funds (ISF) 12,010 48,000 Gas Tax & Other Special Revenue Funds 8,424,480 - LLMD Funds 14,360 78,403 CFD Funds (Maintenance) 26,328 33,839 CFD Funds (Infrastructure) 849,139 - CSA Funds 5,426 - DIF/Quimby/RBBD Funds 3,172,875 50,000 TOTAL $15,754,374 $1,023,651 Increase FY2022-23 Revenue Budget $15,754,374
Increase FY2022-23 Expenditure Budget $1,023,651 PASSED, APPROVED AND ADOPTED this 1st day of March 2023.

Bill Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:

Kay Vinson, Acting City Clerk Jeffrey T. Melching, City Attorney