__________________________________________________________ BUDGET
WORKSHOP
__________________________________________________________ FISCAL YEAR 2024/25 MID-CYCLE
BUDGET REVIEW
CITY OF MENIFEE, CA
SPECIAL MEETING: MAY 15, 2024
AGENDA ITEM #4.1
FINANCE DEPARTMENT
5 YEAR
STRATEGIC
PLAN
COMMUNITY
ENGAGEMENT & SOCIAL
INFRASTRUCTURE
CONNECTIVITY
&
MOBILITY
THRIVING
ECONOMY
SAFE & VIBRANT
COMMUNITY
UNIQUE
IDENTITY
-1-
BUILDING A
SAFE,
THRIVING,
PREMIER &
INCLUSIVE
PLACE TO
BE!
WORKSHOP OUTLINE:
- Purpose & Process of Mid-C ycle & 2 Year Budget
- FY2024/25 Mid-C ycle Budget Review Summary & Recommended Adjustments - Revenue Adjustments (General Fund & Quality of Life)
- Operating Budget Expenditure Adjustments (General Fund & Quality of Life) - Capital Improvement Program (CIP) Adjustments (All funding sources) - FY2024/25 Mid-C ycle Budget Review: Quality of Life, Special Revenues, ARP Review and Recommended Adjustments
- Quality of Life Fund
- ISFs, Gas Tax & Special Revenues Funds
- Special Districts (LLMDs, CSAs, CFDs)
- American Rescue Plan (ARP) Funding
- Long Term Financial Planning & Management: Reserve Policy Update -2-
PLANNING
• Revenue Analysis/Projections & Baseline
Expenditures Analysis (insurance, leases etc)
• Long-Range Financial Planning.
• Workforce (Personnel) Review/Development.
• Goals/Objectives & Key Performance
Indicators (KPI) Development, Strategic Plan
alignment.
• Internal Service Fund (ISF): IT, Fleet, Facilities
Allocations
• CIP Program Development.
• Department Budget Review/Analysis.
• Community Engagement/Workshops.
• Other Special Revenues/Expenditure Budgets.
BUDGET PLANNING & MANAGEMENT
MANAGEMENT
• Monitoring of Actuals (Revenues and
Expenditures).
• Budget Carryovers (Purchase Orders, CIP,
Grants).
• Additional budget appropriation requests.
• Goals/Objectives, KPI progress/completion.
• 10-Year Forecast model/long-range financial
planning.
• Mid-Year & Mid-Cycle reviews.
-3-
2-YEAR BUDGET CYCLE
2-Year Budget Process provides for:
• More Long-Term Financial Planning
• Streamlining/Consolidating budget
processes
Regular public reviews, including, Mid-
Year Review and Mid-Cycle Reviews will
continue as part of the budget
management process.
Year-end reporting/accounting and
Financial Transparency will continue and
be high priority.
-4-
2 YEAR BUDGET CYCLE –
THE MID-CYCLE REVIEW
Comprehensive review of adopted budget and any
recommended adjustments for the upcoming adopted
Year 2 (FY2024/25) budget.
Mid-Cycle Budget Review: Preparing for Year 2
OPERATING BUDGET
Funds the City’s daily business, programs and
services, capital outlays/equipment
- Personnel
- Programs/Services
- Capital Outlays/Equipment
CAPITAL (CIP) BUDGET
Financial plan for long-term capital
improvements, & facilities
- Capital Improvements
- Facilities Improvements
-5-
FUNDING SOURCES: General Fund, Quality
of Life, and Special Revenue & Other Funds
FUNDING SOURCES: General Fund, Quality
of Life, and Special Revenue & Other Funds
TOTAL PERSONNEL: 333.50 FTE (122 Public Safety (sworn, professional & cadets)) BUDGET BREAKDOWN:
-6-
Operating Budget
(General Fund &
Quality of Life)
$94,801,925
Operating (Special
Revenue & Other)
$25,709,285
CIP Program
(General Fund &
Quality of Life)
$1,821,040
CIP Program
(Special Revenue
& Other)
$13,756,172
Category
FY2024/25
Adopted
Budget ($)
% of
Citywide
Budget
FY2024/25
Proposed
Adjusted
Budget ($)
% of
Citywide
Budget
Operating Budget:
(General Fund & Quality of Life) $94,222,604 72.05% $94,801,925 69.66% Operating Budget:
(Special Revenue & Other) 24,207,665 18.51% 25,709,285 18.89% Total Operating Budget: $118,430,269 90.56% $120,511,210 88.55% CIP Program Budget:
(General Fund & Quality of Life) $446,040 0.34% $1,821,040 1.34% CIP Program Budget:
(Special Revenue & Other) 11,906,172 9.10% 13,756,172 10.11% Total CIP Budget: $12,352,212 9.44% $15,577,212 11.45%
TOTAL CITYWIDE BUDGET: $130,782,481 100.00%$136,088,422 100.00%
ECONOMIC FORECAST &
REVENUE ANALYSIS UPDATES
- National, State, Local indicators
- Current Year in Review
- Revenue Projections
CAPITAL
IMPROVEMENTS
- FY2024/25 CIP Program
MID-CYCLE BUDGET
REVIEW PROCESS
OVERVIEW
- Overall Timeline
- Public Engagement
- Adjusted Budget Adoption
OPERATING BUDGET ADJUSTMENTS
- Operating & Maintenance Expenditures
- Personnel/Staffing Needs
- Capital Outlays
- General Fund & Quality of Life (Measure DD), Other
Funds
FY 2024/2025
-7-
MID-CYCLE BUDGET REVIEW
- Slowed Growth, Sales Tax/QoL Reduced
Projections - Mission Critical/Required Commitments Adjustments - Internal Department Specific Reviews & Public
Workshops
- Additional Funding for Priority CIP
Projects
PROPOSED FISCAL YEAR 2024/25
MID-CYCLE BUDGET REVIEW
REVENUE ADJUSTMENTS: GENERAL FUND &
QUALITY OF LIFE
-8-
PROPOSED BUDGET SUMMARY: GENERAL FUND & QUALITY OF LIFE FISCAL YEAR 2024/25 MID-CYCLE BUDGET
Structurally Balanced
Budget
Fiscally Conservative Revenue
Projections
FY2024/25
ADOPTED
FY2024/25
MID-CYCLE
ADJUSTMENTS
FY2024/25
PROPOSED
ADJUSTED
Revenues
General Fund $73,083,894 $1,199,197 $74,283,091
Quality of Life 21,584,750 (733,750) 20,851,000
TOTAL REVENUES $94,668,644 $465,447 $95,134,091
Expenditures
Personnel $42,615,570 $265,955 $42,881,525
Operating Expenses 41,820,775 888,366 42,709,141
One-Time Studies 190,000 100,000 290,000
Capital Outlays 721,000 (500,000) 221,000
Transfers & Allocations (ISFs) 8,875,259 (175,000) 8,700,259 CIP Program 446,040 1,375,000 1,821,040
TOTAL EXPENDITURES $94,668,644 $1,954,321 $96,622,965
Use of Fund Balance
General Fund $0 $334,792 $334,792
Quality of Life 0 1,375,000 1,375,000
USE OF FUND BALANCE $0 $1,709,792 $1,709,792
TOTAL OPERATING BUDGET:
(Personnel, Operating, One-Time Studies, Capital
Outlays, and Transfers & Allocations)
REVENUE
FY2024/25
PROPOSED
ADJUSTED
General Fund $74,283,091
Quality of Life $20,851,000
TOTAL REVENUE $95,134,091
EXPENDITURES
General Fund $74,346,965
Quality of Life $20,454,960
TOTAL EXPENDITURE $94,801,925
REVENUES OVER
EXPENDITURES $366,166
-9-
(OVERALL SUMMARY)
-10-
STATE &
REGIONAL LOCALNATIONAL
Overall Economic
Indicators
- Lingering 40-y ear
inflation/price increases
stabilizing (3.5% Year over
year, March 2024). Expected
to slow to 2-3% by late 2024.
- Housing permits, consumer
co
nfidence, and
manufacturing data reflect
overall slower activity (retail
sales growth weaker,
household debt increasing).
- Continued, though slower,
i
nterest rate increases.
- National Unemployment rate
a
t 3.8% (March 2024).
Overall Economic
Indicators
- $68 billion deficit estimated for
F
Y2024/25 California state
budget proposal.
- State job growth halved from
2 022 to 2023 to pre-Covid
growth levels.
- State unemployment rate 5.3%
(
March 2024).
- Slight growth in residential
p
ermit activity, projected to
improve in 2024 through 2027
as interest rates cuts appear.
- Sales & Use Tax $653 million
b
elow forecast in March and $1
billion below year-to-date
forecast, reflecting weakness in
activity.
Overall Economic
Indicators
- Development activity Year-to-
D
ate compared to FY2022/23
(April to April) is 4.32%
higher. Building activity
overall is on pace with
FY2022/23.
- Various industrial projects
c
ontinue under CEQA review.
- Sales Tax/Quality of Life
r
evised revenue
recommended reduced
projections for FY2024/25.
- Long-T
erm/Strategic financial
planning efforts (review of
Reserve Policy and other
reserves, unfunded pension
liability).
REVENUE PROJECTIONS
SALES TAX REVENUE
BUILDING/PLANNING/
ENGINEERING REVENUE
PROPERTY TAX
VLF REVENUE
FRANCHISE FEES
INTEREST REVENUES
SALES TAX & QUALITY OF LIFE:
(-5.55%, $1.88 MILLION DECREASE FROM FY2024/25 ADOPTED BUDGET) PROPERTY TAX:
(0%, NO ADJUSTMENT FROM FY2024/25 ADOPTED BUDGET)
VEHICLE IN LIEU TAX (VLF) REVENUE:
(+0.61%, $68K INCREASE FROM FY2024/25 ADOPTED BUDGET)
BUILDING/PLANNING/ENGINEERING REVENUE:
(+5.78%, $768K INCREASE FROM FY2024/25 ADOPTED BUDGET)
FRANCHISE FEES:
(+8.56%, $433K INCREASE FROM FY2024/25 ADOPTED BUDGET)
INTEREST (INVESTMENT) REVENUE:
(+203.00%, $1.0 MILLION INCREASE FROM FY2024/25 ADOPTED BUDGET) -11-
PROPOSED FY2024/25 REVENUE ADJUSTMENTS
GENERAL FUND & QUALITY OF LIFE
(TOP REVENUES)
GENERAL FUND & QUALITY OF LIFE
REVENUE
-12-
Revenues
FY2022/23 Actuals
FY2023/24
Adopted Budget
FY2023/24
Adjusted Budget
FY2024/25
Adopted Budget
FY2024/25
Proposed
Adjusted Budget
Percentage
(%) Change
FY 2024/25
Property Tax $20,538,212 $21,480,342 $21,480,342 $22,801,919 $22,801,919 0.00% Sales Tax - General Fund 12,287,692 12,880,452 12,880,452 13,469,380 12,592,390 -6.51% Sales Tax - Quality of Life (DD) 19,634,904 20,913,120 20,913,120 21,449,750 20,451,000 -4.66% Development Fees 13,694,189 12,648,213 12,648,213 13,280,624 14,048,320 5.78% Vehicle License Fees (VLF) 9,687,677 10,726,533 10,726,533 11,141,656 11,210,112 0.61% Franchise Fees 4,902,176 4,875,000 4,875,000 5,055,000 5,487,753 8.56% Other 12,784,942 7,373,853 10,367,162 7,207,152 8,392,597 16.45% Transfers In* 2,274,894 863,163 1,672,535 263,163 150,000 -43.00% Total General Fund & QoL Revenues $95,804,686 $91,760,676 $95,563,357 $94,668,644 $95,134,091 0.49% Use of Fund Balance** - 5,274,545 32,487,937 - 1,709,792 0.00% Total General Fund & QoL Uses $95,804,686 $97,035,221 $128,051,294 $94,668,644 $96,843,883 2.30% *Includes Transfers of $150K from SLESF (a recurring revenue transfer) **Use of Fund Balances for priority CIP projects, restricted funds, and one-time agreements FY2024/25 PROPOSED
PROPOSED FISCAL YEAR 2024/25
MID-CYCLE BUDGET REVIEW
OPERATING & CIP BUDGETS EXPENDITURE
ADJUSTMENTS (GENERAL FUND & QUALITY OF
LIFE)
-13-
-28- -14-
General Fund
Expenditures
FY 2022/23
Actuals
FY 2023/24
Adopted
B
udget
FY 2023/24
Adjusted
B
udget
FY 2024/25
Adopted
B
udget
FY 2024/25
Proposed
A
djusted
Budget
Percentage
(%) Change
F
Y 2024/25
Public Safety (Fire, Police, Code, Animal) $25,553,642 $30, 517,171 $30,394,742 $31,428,036 $32,494,804 3.39% Administration $15,980,583 $15,741,142 $17,823,050 $17,049,349 17,550,718 2.94% Public Works/Engineering/NPDES $5,917,628 $7,942,681 $7,922,398 $8,140,845 8,218,928 0.96% Community Development - Planning $5,460,884 $3,085,977 $4,044,563 $3,237,868 3,271,868 1.05% Community Development - Building & Safety $2,404,481 $2,821,422 $2,821,422 $2,960,995 2,960,995 0.00% Community Services $4,887,949 $4,920,781 $5,455,647 $5,348,325 5,645,177 5.55% Economic Development $1,460,104 $1,571,046 $1,627,507 $1,660,143 1,660,143 0.00% City Council $293,053 $282,335 $282,335 $297,335 297,335 0.00% CEQA $0 $2,000,000 $4,608,246 $2,000,000 2,000,000 0.00% Total General Fund Expenditures $61,958,324 $68,882,555 $74,979,910 $72,122,896 $74,099,967 2.74% Capital Projects/Capital Outlays 2,321,394 3,072,921 15,294,953 961,000 297,000 -69.09% Total General Fund Uses $64,279,718 $71,955,476 $90,274,863 $73,083,896 $74,396,967 1.80% Quality of Life
Expenditures
FY 2022/23
Actuals
FY 2023/24
Adopted
B
udget
FY 2023/24
Adjusted
B
udget
FY 2024/25
Adopted
B
udget
FY 2024/25
Proposed
A
djusted
Budget
Percentage
(%) Change
FY
2024/25
Menifee Police Department 6,966,283$ 7,592,849$ 8,382,104$ 7,746,038$ 7,746,038$ 0.00% CalFire 11,159,487 12,140,268 12,140,268 13,051,927 12,318,177 -5.62% Code Enforcement 357,907 378,163 378,162 390,745 390,745 0.00% Public Works 229,693 - - - - 0.00% Total Quality of Life Fund Expenditures $18,713,370 $20, 111,280 $20,900,534 $21,188,710 $20,454,960 -3.46% Capital Projects 748,442 4,968,465 16,875,896 396,040 1,771,040 347.19% Total Quality of Life Fund Uses $19,461,812 $25, 079,745 $37,776,430 $21,584,750 $22,226,000 2.97% TOTAL OPERATING & CIP BUDGETS $83,741,530 $97,035,221 $128,051,293 $94,668,646 $96,622,967 2.06% FISCAL YEAR 2024/25 ADJUSTMENTS
FISCAL YEAR 2024/25 ADJUSTMENTS
OPERATING & CIP BUDGET EXPENSES
$96,622,967
Operating Budget: $94,801,925
- $94,580,925 Operating Expenditures
- $221,000 Capital Outlay Expenditures
CIP Budget: $1,821,040
- $50,000 General Fund
- $1,771,040 Quality of Life
FISCAL YEAR 2024/25 MID-CYCLE ADJUSTED BUDGET (General Fund & Quality of Life) -15-
Public Safety (Fire, Police, Code, Animal)
54.80%
Administration
18.16%
Public Works/Engineering/NPDES
8.51%
Community Development - Planning
3.39%
Community Development - Building &
Safety
3.06%
Community Services
5.84%
Economic Development
1.72%
City Council
0.31%
CEQA
2.07% Capital Projects
2.14%
OPERATING BUDGET EXPENSES
PERSONNEL COSTS*: City Manager reviews
new requests with each Department’s
justifications, funding analysis and space
availability.
(FY2024/25 Adjusted: $42,881,525 / Adopted: $42,615,570) OPERATING/MAINTENANCE EXPENSES*:
New year proposed operating budgets are
analyzed compared to previous years actuals
with justifications for any new programs,
contracts or items, or any large differences.
(FY2024/25 Adjusted : $51,699,400/ Adopted: $50,886,034) CAPITAL OUTLAYS: Detailed
descriptions are required for any one-
time large purchases (>$,5000)
(FY2024/25 Adjusted: $221,000/ Adopted: $721,000)
-16-
FISCAL YEAR 2024/25 MID-CYCLE ADJUSTED BUDGET (General Fund & Quality of Life) Funding of $664,000 for PD Vehicle
purchases recommended to be moved
to DIF 525 and ARPA funding
.
Total Proposed Adjusted Operating Expenditures = $94,580,925 (used to determine applicable Reserve Requirement)
PERSONNEL
PERSONNEL REMOVAL REQUEST
DEPARTMENT POSITION TITLE FTE
SALARY &
BENEFITS FY2024/25 COSTS FUNDING SOURCE
Fire Marshal Office Specialist II (replaced under CalFire Contract) -1 $ (81,908) $ (81,908) General Fund
RECLASSIFICATION REQUESTS
DEPARTMENT POSITION TITLE
SALARY &
BENEFITS FY2024/25 COSTS FUNDING SOURCE
Community Services Management Analyst II (From Management Analyst I) $ 10,020 $ 10,020 General Fund &
Special Districts
Menifee Police Department Police Lieutenant (From Police Sergeant) $ 47,655 $ 47,655 General Fund Public Works Public Works Inspector II (From PW Inspector I) $ 10,911 $ 10,911 General Fund Public Works Management Aide (From Administrative Assistant) $ 7,527 $ 7,527 General Fund &
Special Districts
-17-
PERSONNEL SUMMARY & NEW REQUESTS
Current Year
(FY2023/24)
thru Mid-Year
FY2024/25
Proposed
Adjusted
Full-Time 302.0 301.0
Part-Time 32.5 32.5
TOTAL FTE 334.5 333.5
"Through teamwork and
leadership, the City of Menifee
provides essential services to
improve the quality of life of
our community."
$ (5,796) $ (5,796) TOTAL COST/ (SAVINGS)
OPERATING/MAINTENANCE & CAPITAL OUTLAYS
EXPENDITURES (SUMMARY ADJUSTMENTS)
CAPITAL OUTLAYS
Fiscal Year 2024/25 Adjustments
• Dispatch one-time expenses in agreement
with Murrieta, $50,000 Required dispatch system
technology update.
• Funding update of previous General
Fund/ISF with Special Revenue (ARPA &
DIF) for Fleet Replacements for Menifee
PD, 8 patrol vehicles, $664,000
($500,000 moved
to ARPA Grant Fund, $164k moved to DIF Fund 525)
OPERATING/MAINTENANCE
Fiscal Year 2024/25 Adjustments
- Increased insurance premiums (General Liability,
Claims)
- Increasing annual premiums/Self Insured Retention (SIR) amounts changes. ($341k Increase).
- Previously Approved Items - Aquatics Program, Council Stipends Increase, FY23/24 Mid-Year Personnel adjustments. ($289k Increase).
- Dispatch – Increases for services per labor MOU negotiations for dispatch personnel ($150k increase).
- Animal Field Services – Increase based on distribution/share of service use. ($107k Increase)
- Fire Contract Services - No budget adjustment from adopted, 1x savings of $764k will be used for Assigned Fund Balance Fire Equipment Replacements.
- Development Software (Accela/Bluebeam)- Integration of Accela/Bluebeam software, offset by Technology Surcharge revenue. ($34k increase).
-18-
INSURANCE PREMIUMS & CLAIMS
Insurance
Category
FY2024/25
Insurance Premium
without SIR
Increase
FY2024/25 Insurance
Premium
with SIR Increase
General Liability
$1,709,742
Current SIR: $150K
$1,505,094
Proposed SIR: $300K
Workers’
Compensation
$1,093,018
Current SIR: $50K
$553,392
Proposed SIR: $200K
Property & Auto $181,011 $181,011
Cyber $37,120 $37,120
Pollution $7,009 $7,009
Crime $2,830 $2,830
Deadly Weapons $1,749 $1,749
Total: $3,032,479 $2,288,205
Total savings of
$744,274
• General Lia bility increase SIR from $ 150k
(current) to $ 300k. Only 1 GL case reached
over the $300k SIR Limit over the last 3 fiscal
years.
• Workers’ C ompensation increase SIR from
$50k (current) to $ 200k. Only 1 WC case
reached over the $200k SIR limit over the last
3 fiscal years.
Recommendation:
1) SIR Increase provides premium
savings of $744,274
2) Increase claims expense
account by $350k
3) Create a $500k SIR reserve
(Assigned Fund Balance Account)
-19-
DELIBERATE USE OF FUND BALANCE
General Fund & Quality of Life
Fund Name
Amount ($)
FY2024/25
Adopted
Budget
Recommended
Amount ($)
FY2024/25
Adjusted
Budget Description
General Fund: Surplus Unassigned Fund Balance $0 $100,000 Safety Master Plan (1x Cost)(Strategic Plan Item)
General Fund: Surplus Unassigned Fund Balance 0 50,000 Dispatch Services Technology System Required Upgrade (1x Cost)
General Fund: Assigned Fund Balance AMR Fees
(Restricted Use/Purpose Revenue)
0 150,792 Purchase 25 automated external
defibrillator (AED) from AMR Fees;
Purchase 21 thermal imaging units for fire
suppression personnel from AMR Fees.
General Fund: Assigned Fund Balance Technology
Surcharge
(Restricted Use/Purpose Revenue)
0 34,000 Accela/Bluebeam Software
Integration/Update
General Fund Subtotal: $0 $334,792
Quality of Life Fund: Unassigned Fund Balance $0 $1,375,000 CIP 23-13: Cherry Hills Facility Phase I Project
Quality of Life Fund Subtotal: $0 $1,375,000
TOTAL $0 $1,709,792
-20-
FY
2024/25 MID
-
CYCLE
CAPITAL IMPROVEMENT
PROGRAM (CIP)
-21-
FY2024/25 CIP PROGRAM (Adjusted)
SUMMARY
-22-
* Reflects deletion of CIP 25-02: Axon RMS System
for PD Project ($50,000)
# OF PROJECTS ADOPTED AMOUNT ($) # OF PROJECTS REQUESTED AMOUNT ADJUSTED AMOUNT ($)
Transportation 3 $2, 859,237 4 $1,000,000 $3,859,237
Traffic Signals 2 1,378,094 2 0 1,378,094
Street Improvements 3 1,692,000 3 0 1,692,000
Pavement Management (PMP) 4 4,132,000 3 155,000 4,287,000 Drainage 3 749,000 3 0 749,000
Streetlights 0 - 0 0 0
Public Facilities 1 108,548 6 1,900,000 2,008,548
Parks, Trails, and Recreation 3 1,200,000 4 100,000 1,300,000 Technology Infrastructure* 2 233,333 2 70,000 303,333*
TOTAL 21 $12,352,212 27 $3,225,000 $15,577,212
PROJECT CATEGORY
FY2024/25 ADOPTED FY2024/25 PROPOSED ADJUSTED
Quality of Life Adjustments: $1,375,000
Special Revenues Funds: $1,850,000
Total Adjustments: $3,225,000
CIP PROGRAM PROJECTS LISTING
-23-
Project No. Project Name FY 2024/25
Adopted
FY 2024/25 Proposed
Adjusted
CIP 20-01 Scott Road/Bundy Canyon Road Widening $0 $1 ,000,000 CIP 20-03 McCall Boulevard Widening 520, 237 520,237
CIP 25-03 Murrieta Rd Widening (Holland to port) 1 ,500,000 1,500,000 CIP 25-04 Holland Rd Widening (Bradley to Haun) 839, 000 839,000 CIP 23-02 Goetz Road/Vista Way Traffic Signal 1 ,202,594 1,202,594 CIP 25-05 Evans Road/Craig Avenue Traffic Signal 1 75,500 175,500 CIP 24-04 Romoland Elementary School - ATP 589, 000 589,000 CIP 24-15 Watson Rd at Harvest Valley Elementary
School – ATP 553,000 553,000
CIP 25-01 Murrieta Rd/Holland Rd Intersection
Improvements 550,000 550,000
PMP 25-01 FY 24-25 Slurry Seal Program 923, 000 923,000 CIP 25-07 FY 24-25 Local Roads AC Resurfacing Program 1 ,409,000 1,564,000 CIP 25-08 Antelope Road – Holland to Newport 1 ,800,000 1,800,000 Transportation
Traffic Signals
Street Improvements
PMP
CIP PROGRAM PROJECTS LISTING
-24-
Project No. Project Name FY 2024/25
Adopted
FY 2024/25 Proposed
Adjusted
Drainage CIP 25-09 Garbani Road Drainage Improvements – MDP $749,000 $749,000 CIP 21-04 New Quail Valley Fire Station No. 5 0 200,000 CIP 23-10 Community Center/Recreation Center 0 200,000 CIP 23-13 Cherry Hills Facility, Ph. I 0 1,375,000
CIP 24-05 Fire Station No. 76 - Living Area
Improvements 0 75,000
NEW Kay Ceniceros Display Sign 0 50,000
CIP 25-06 Fire Station No. 68 – Interior Improvements – Ph. II 108,548 108,548
CIP 22-27 Quail Valley Park 250,000 250,000
CIP 24-12 La Ladera Park Enhancements 900,000 900,000
CIP 24-13 Public Arts in Parks 50,000 50,000
CIP 24-22 Sun City Boulevard Street Medians 0 100,000
CIP 16-06 AMR Park Surveillance and Technology
Upgrades 183,333 183,333
CIP 25-02 Axon RMS System for Police Department
Implementation (project cancelled) 50,000 (50,000)
NEW City Hall Back-Up Generator 0 120,000
$12,352,212 $15,577,212
IT
Totals
Public Facility
Parks, Trails, & Recreation
PROPOSED FISCAL YEAR 2024/25
MID-CYCLE BUDGET REVIEW
QUALITY OF LIFE, SPECIAL REVENUE FUNDS, &
ARPA
-25-
PROPOSED FISCAL YEAR 2024/25 MID-CYCLE BUDGET
The Quality of Life (Measure DD) Committee
met May 7, 2024 and reviewed the proposed
2024/25 Adjusted Budget. Following review,
the Committee made a motion to
recommend the budget as presented for
Council consideration. -26-
QUALITY OF LIFE
(MEASURE DD)
ADOPTED BUDGET
FISCAL YEAR 2024/25
-27-
REVENUES
FY24/25 Revenue (Including Interest) $21,584,750
Fund Balance -
TOTAL REVENUES $21,584,750
DEPARTMENT AMOUNT ($) %
CODE ENFORCEMENT $390,745 1.81%
Personnel - 3 Officers 390,745
CALFIRE DEPARTMENT $13,051,927 60.47%
Personnel 13,051,927
MENIFEE POLICE DEPARTMENT $7,746,038 35.89%
Dispatch Services (29%) 998,320
Personnel 6,747,718
CIP PROGRAM $396,040 1.83%
Capital Projects 396,040
TOTAL PROPOSED FY2024/25 EXPENDITURE BUDGET: $21,584,750 100.00%
QUALITY OF LIFE
(MEASURE DD)
PROPOSED MID-
CYCLE BUDGET
FISCAL YEAR 2024/25
-28-
Mid-Cycle Recommendations:
- Deliberate use of Fund Balance
f
or Cherry Hills Building Project
- Reduction of FY24/25 Quality
o
f Life Revenue Sales Tax
Projections and Operating
Costs based on revised
projections. Increase in Interest
Revenue Projections.
REVENUES
FY24/25 Revenue (Including Interest) (Adjusted) $20,851,000 Fund Balance 1,375,000
TOTAL REVENUES $22,226,000
DEPARTMENT AMOUNT ($) %
CODE ENFORCEMENT $390,745 1.76%
Personnel - 3 Officers 390,745
CALFIRE DEPARTMENT (Adjusted) $12,318,177 55.42%
Personnel 12,318,177
MENIFEE POLICE DEPARTMENT $7,746,038 34.85%
Dispatch Services (29%) 998,320
Personnel 6,747,718
CIP PROGRAM $1,771,040 7.97%
Capital Projects 1,771,040
TOTAL PROPOSED FY2024/25 MID-CYCLE EXPENDITURE BUDGET: $22,226,000 100.00%
QUALITY OF LIFE
(MEASURE DD)
PROPOSED ADJUSTED
BUDGET
CIP PROJECT LISTINGS
EST. 2017
PROJECT FY2024/25
ADOPTED
FY2024/25
PROPOSED
ADJUSTED
MDP - Garbani Road Drainage
Improvements $396,040 $396,040
Cherry Hills Facility – Phase I - 1,375,000
TOTAL $396,040 $1,771,040
-29-
Project Details:
This project would support the
Strategic Plan Goals to create a
Thriving Economy and a Safe and
Vibrant Community.
Under Phase I, the Cherry Hills
Facility Improvements Project
proposes to renovate 2, 575
square feet of the existing facility
to create office space for
Menifee Police Department
personnel.
ISF’S, GAS TAX & SPECIAL REVENUES
In additional to General Fund & Quality of Life, various ISF’s and other special revenue funds support the Citywide (Operating & CIP Budgets).
Revenue Adjustments:
- Interest Earnings Adjustments
- Revenue for reprogrammed ARPA projects
- LLMDs, CSAs annual CPI adjustments, where applicable. - Additional revenue increases for CFDs will be reflected final adoption (2024 new permits & CPI adjustments)
Expenditure Adjustments:
- Additional funding for Priority CIP Projects ($1,850,000) - Grant Fund/ DIF Fund: Funding update for Menifee PD
Patrol Vehicles from General Fund/ISF to ARPA ($445k)
& DIF Law Enforcement (
$218k)
- CFD Funds: Personnel reclassification requests (portion of costs)
- AQMD Fund: Purchase of Ford Maverick (Fleet)($35k)
- PEG Fund: A/V Hardware/Equipment (Encoder &
storage) (
$42k)
- IT Fund: CS Recreation Software System ($100k), Phone System Replacement ($100k), Computer/Getac
Equipment Replacement ($350k)
- LLMDs, CSAs, CFDs: Property Tax Finder portal ($24k)
-30-
FY2024/25 FY2024/25 F Y2024/25
Adopted Budget Proposed
Adjustments
Proposed
Adjusted
Budge
t
Revenue:
Internal Service Funds (ISF) $9,308,685 ( $121,598) $9,187,087 Gas Tax & Other Special Revenue Funds 10,078,440 6 50,498 10,728,938 LLMD Funds 886,189 3 4,582 920,771
CFD Funds (Maintenance) 5,945,332 6 1,773 6,007,105
CSA Funds 1,909,576 6 ,478 1,916,054
DIF/Quimby/RBBD Funds 7,702,445 2 69,313 7,971,758
Capital Project Fund 258,679 5 2,533 311,212
Debt Service Fund (Transfer In) 1,759,325 1 0,870 1,770,195 Total Revenue: $37,848,671 $964,449 $38,813,120
Expenditures:
Personnel $6,362,543 $ 13,609 $6,376,152
Operating & Maintenance 12,984,631 2 99,671 13,284,302
Capital Outlays & One-Time Studies 562,948 1 ,192,250 1,755,198 Transfers & Allocations 2,628,218 ( 3,910) 2,624,308
Capital Projects (CIP) 11,906,172 1 ,850,000 13,756,172 Debt Issuance & Debt Service 1,669,325 1 ,669,325
Total Expenditures: $36,113,837 $3,351,620 $39,465,457
Use of Fund Balance $1,734,834 ($2,387,171) ($652,337)
Gas Tax & Special Tax Revenue Funds Proposed FY2024/25 Adjusted Budget Gas Tax & Special Tax Revenue Funds
SPECIAL DISTRICTS (LLMDs, CFDs, CSAs)
The City of Menifee administers special financing districts which are formed by property owners to fund services beyond the normal and customary services provided by the City.
LIGHTING & LANDSCAPE
MAINTENANCE
DISTRICTS (LLMDs)
(44 FUNDS)
Eligible services include, but
are not limited to:
- Right-of-Way (ROW)
Landscape Maintenance
- Traffic Signal Maintenance
- Fossil Filter Maintenance
- Streetlights
COUNTY SERVICE AREAS
(CSAs)
(6 FUNDS)
Eligible services include, but
are not limited to:
- Streetlights
- CSA 145: Park
Maintenance, ROW
Landscape Maintenance,
Streetlights, Recreation
services
- CSA 86: Road
Maintenance, Streetlights,
Law Enforcement.
COMMUNITY FACILITIES
DISTRICTS (CFDs)
(60 FUNDS)
Eligible services include, but
are not limited to:
- Streetlights/traffic signal
maintenance
- Park Maintenance
- ROW Landscape Maintenance
- Street sweeping and street
maintenance
- Channel Maintenance/drainage
maintenance
- Trail Maintenance
-31-
As adopted and recommended , FY2024/25 budget includes $120,000 General Fund contribution for LLMD 89-1, Zone 3 and CSA 145 to support maintenance (tree trimming and increasing utility costs).
AMERICAN RESCUE PLAN (ARP)
American Rescue Plan (ARP) economic stimulus plan approved by Congress and executive branch, March 11, 2021.
- All local governments, including the City of Menifee received direct funding to help bridge budget shortfalls and mitigate the impacts of COVID-19. - Funding must be encumbered by December 31, 2024 and
expended by December 31, 2026.
- City of Menifee received: $13,213,674 in ARP Funds
-32-
AMERICAN RESCUE PLAN (ARP)
-33-
All funds must be encumbered by
12/31/2024 and expended by
12/31/2026.
FY2024/25 Adjusted Budget Recommendations
Project
Recommended
Amount ($)
CIP Program: Kay Ceniceros Display Sign $50,000
CIP Program: Sun City Boulevard Street Medians Project 100,000 FY2024/25 Operating Budget: Menifee PD Patrol
Vehicles
(Funding Update from General Fund)
445,472
TOTAL $595,472
Original Allocation $13,213,674
ARP Projects Project Status
Amount
Allocated
Available
Balance to
Reprogram
NeoGov Platform (HR) Completed $61,513 $0
FY2021/22 Operating Transfer Completed 3,616,644 -
Smart Cities Master Plan Completed (Reprogram balance) 162,050 5,000 Menifee PD: Micro-Robots Completed 9,999 -
Holland Road Sewer Project Completed 500,000 -
Mass Notification System Completed (Reprogram balance) 120,000 495 MENU Grant Program (ECD) Reprogram Funding (See Below) 500,000 4 70,000 Covid (Cleaning, PPE etc) Completed (Reprogram balance) 157,459 119,807 FY2022/23 Operating Transfer Completed 2,010,210 -
Fire Station #68 Improvements Completed (Reprogram balance) 329,429 170 Fire Station #5 Construction Underway 1,000,000 -
Cherry Hills Property Acquisition & Tenant ImprovementsUnderway 2,215,000 - JOBS Program (ECD) Underway 158,334 -
FY2023/24 CIP Program: Paloma Wash Pedestrian BridgeUnderway 531,369 - FY2023/24 CIP Program: Central Park Amphitheater Underway 1,841,667 - Totals $13,213,674 595,472
TOTAL AMERICAN RESCUE PLAN REMAINING BALANCE: (0)$ 595,472$ American Rescue Plan (ARP)
PROPOSED FISCAL YEAR 2024/25
MID-CYCLE BUDGET REVIEW
RESERVE POLICY REVIEW
-34-
-7-
`
o CC-07 (Reserve Fund Policy) Council
Approved Policy adopted 2021.
o Review of Policy every 3 years and
determine if appropriate/feasible to
increase Reserve Requirement.
o 2024 Reserve Policy Update Options:
- Increase Reserve Requirement from 35% to
40%. ($33,103,324 to $37,832,370).
“Reserves as Insurance”.
- Identify & Prioritize dedicated reserves for
larger/long-term expenses. “Reserves as
Savings”.
- Self- Insured Retention (SIR) Assigned Fund
Balance
- Fleet Replacement Assigned Fund Balance
- Pension Liability Assigned/Restricted Fund
Balance
- City Facilities Assigned Fund Balance
F und Balance Policy adopted by City Council by Resolution September 2021.
Establishes a minimum of 35% General Fund Balance
Reserve (equal to approximately 3 months of operating
expenses) with the following Reserve Balances:
• Operating Stabilization Reserve of
12.5% for Catastrophic Emergencies.
( FY 2024/25 Adjusted = $11,822,616)
• Economic Uncertainty Reserve of 12.5%
for Economic Distress.
( FY 2024/25 Adjusted = $11,822,616)
• Unassigned Fund Balance Reserve of
10% designed to protect against cash flow shortfalls.
(FY 2024/25 Adjusted = $9,458,093)
Based on Operating Expenditures of:
FY2024/25 Adjusted: $94,580,925
* Excludes Capital Outlay Expenses from calculation
EXISTING FUND BALANCE
POLICY
MENIFEE RESERVE
POLICY REVIEW
-35-
RECOMMENDED ACTION(S)
Review the presentation and provide input on the proposed Fiscal Year 2024/25 Mid-Cycle Budget Operating Budget and Capital Improvement Program (CIP) Budget.
-36-