2 1
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TABLE 3: SUMMARY OF MAIN FUND CATEGORIES
Main Fund Category Funds Included Budget Section
General Fund & Quality of Life General Fund
Quality of Life
CITYWIDE BUDGET: Operating
Budget & CIP Budget
Special Revenue & Other Funds Gas Tax & Other Special Revenue Funds (CDBG, LLMDs, CSAs, CFDs,
DIF/RBBD/Quimby)
CITYWIDE BUDGET: Operating
Budget, CIP Budget
Agency/Custodial Funds Trust Fund and Bonded CFDs FIDIUCIARY: N/A, not a part of Operating Budget, Special Revenue
& Other Funds Budget & CIP Budget.
Appropriations represent
revenues/expenditures separate from
the Operating Budget & CIP Budget.
In summary, the proposed Citywide Budget FY 2024/2025 Mid-Cycle total revenues and expenditures adjustments are summarized in Table 4.
TABLE 4: TOTALS SUMMARY FY2024/2025 ADOPTED & PROPOSED ADJUSTED FY2024/2025 MID-CYCLE CITYWIDE BUDGET
Description Adopted Budget
FY 2024/2025
Proposed Adjusted Budget
FY 2024/2025
Variance (Adopted vs.
Proposed Adjusted)
Total Revenues $132,517,315 $134,877,838 $2,360,523
Total Expenditures $130,782,481 $136,054,036 $5,271,555 Fund Balance +/- $1,734,834 ($1,176,198) ($2,911,032) The proposed FY2024/2025 Adjusted Citywide Budget and Fiduciary total revenues and expenditures are summarized in Table 5.
TABLE 5: TOTALS SUMMARY 2024/2025 PROPOSED ADJUSTED CITYWIDE BUDGET AND
FIDUCIARY BUDGET
Description Adopted Budget
FY2024/2025
Proposed Adjusted
Budget
FY2024/2025
Variance (Adopted vs.
Proposed Adjusted)
Total Revenues $135,674,980 $139,556,476 $3,881,496
Total Expenditures $132,240,341 $138,518,237 $6,277,896 Fund Balance +/- $3,434,639 $1,038,239 ($2,396,400)
The proposed revised FY2024/2025 Citywide Budget (Operating and CIP) is summarized in Table 6 on the following page.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 4
Menifee Mayor and City Council
June 5, 2024
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TABLE 6: SUMMARY FY2024/2025 PROPOSED ADJUSTED CITYWIDE BUDGET
TOTAL REVENUE BUDGET (CITYWIDE)
(Personnel, Operating & Maintenance, One-Time Studies, Capital Outlays, and Transfers & Allocations) Revenue
Adopted Budget
FY2024/2025
Proposed Adjusted Budget
FY2024/2025
Variance (Adopted vs.
Proposed Adjusted)
General Fund $73,083,894 $74,283,091 $1,199,197
Quality of Life $21,584,750 $20,851,000 ($733,750)
GENERAL FUND TOTAL
REVENUE $94,668,644 $95,134,091 $465,447
Special Revenue & Other Funds $37,848,671 $39,743,747 $1,895,076 TOTAL REVENUE $132,517,315 $134,877,838 $2,360,523
TOTAL OPERATING EXPENDITURE BUDGET (CITYWIDE):
Expenditures
Adopted Budget
FY2024/2025
Proposed Adjusted
Budget
FY2024/2025
Variance
(Adopted vs.
Proposed Adjusted)
General Fund $73,033,894 $74,346,965 $1,313,071
Quality of Life $21,188,710 $20,454,960 ($733,750)
GENERAL FUND TOTAL
EXPENDITURES $94,222,604 $94,801,925 $579,321
Special Revenue & Other Funds $24,207,665 25,674,900 $1,467,235
TOTAL OPERATING
EXPENDITURES $118,430,268 $120,476,825 $2,046,557
General Fund Revenues
over Operating Expenditures $446,040* $332,166* ($113,874) *Used in Capital (CIP) Budget
TOTAL CIP BUDGET:
(Approved CIP Projects)
Expenditures
Adopted Budget
FY2024/2025
Proposed Adjusted Budget
FY2024/2025
Variance (Adopted vs.
Proposed Adjusted)
General Fund $50,000 $50,000 $0
Quality of Life $396,040 $1,771,040 $1,375,000 Special Revenue & Other $11,906,172 $13,756,172 $1,850,000 TOTAL CIP EXPENDITURES $12,352,212 $15,577,212 $3,225,000
TOTAL CITYWIDE
EXPENDITURES $130,782,481 $136,054,036 $5,271,555
Citywide Total Revenues
over Total Expenditures $1,734,834 ($1,176,198) ($2,911,032) USE OF FUND BALANCE – OPERATING BUDGET
General Fund $ - $334,792 $334,792 Quality of Life $ - $ - $ - Special Revenue & Other $ - $550,000 $550,000
TOTAL USE OF FUND
BALANCE $ - $884,792 $884,792
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 5
Menifee Mayor and City Council
June 5, 2024
Page
1012 of 1108
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USE OF FUND BALANCE – CIP BUDGET
Quality of Life $ - $1,375,000 $1,375,000 Special Revenue & Other $1,696,924 $3,225,000 $1,528,154
TOTAL USE OF FUND
BALANCE $1,696,924 $4,600,000 $2,903,154
Table 7 on the following page summarizes the recommended budgets by overall fund type.
TABLE 7: SUMMARY OF CITYWIDE BUDGET BY FUND TYPE FOR PROPOSED FY2024/2025
ADJUSTED BUDGET
Summary of Recommended Revenues by Fund
Fund Type
FY2022/2023
Actuals
FY2023/2024
Adopted
FY2023/2024
Adjusted
FY2024/2025
Adopted
Budget
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
General Fund $76,599,567 $70,722,556 $74,475,237 $73,083,894 $1,199,197 $74,283,091 Quality of Life $19,928,293 $21,038,120 $21,088,120 $21,584,750 ($733,750) $20,851,000 General Fund TOTAL: $96,527,860 $91,760,676 $95,563,357 $94,668,644 $465,447 $95,134,091 Internal Service Funds
(ISFs) $8,108,673 $8,460,614 $8,488,114 $9,308,685 ($121,598) $9,187,087 All Other Special
Revenue Funds $52,621,508 $27,902,979 $88,390,473 $28,539,986 $2,016,674 $30,556,660 All Funds TOTAL: $157,258,041 $128,124,269 $192,441,944 $132,517,315 $2,360,523 $134,877,838 Summary of Recommended Expenditure Appropriations by Fund Fund Type
FY2022/2023
Actuals
FY2023/2024
Adopted
FY2023/2024
Adjusted
FY2024/2025
Adopted
Budget
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
General Fund $64,279,718 $71,955,477 $90,274,864 $73,083,894 $1,313,071 $74,396,965 Quality of Life $19,461,812 $25,079,744 $37,776,430 $21,584,750 $641,250 $22,226,000 General Fund TOTAL: $83,741,530 $97,035,221 $128,051,294 $94,668,644 $1,954,321 $96,622,965 Internal Service Funds
(ISFs) $6,950,560 $9,065,880 $10,676,757 $9,308,685 $495,000 $9,803,685 All Other Special
Revenue Funds $45,792,908 $29,723,971 $134,020,606 $26,805,152 $2,822,234 $29,627,386 All Funds TOTAL: $136,484,998 $135,825,075 $272,748,657 $130,782,481 $5,271,555 $136,054,036 Fund Balance +/- $20,773,043 ($7,700,806) ($80,306,713) $1,734,834 ($2,911,032) ($1,176,198) Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 6
Menifee Mayor and City Council
June 5, 2024
Page
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TABLE 8: SUMMARY OF PROPOSED FIDUCIARY FY2024/2025 (TRUST FUND/BONDED CFDs) Summary of Recommended Revenues by Fund
Fund Type
FY2022/2023
Actuals
FY2023/2024
Adopted
FY2023/2024
Adjusted
FY2024/2025
Adopted
Budget
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
Agency/Custodial
Funds: $2,432,157 $3,097,039 $6,042,218 $3,157,665 $1,520,968 $4,678,633 Agency/Custodial
TOTAL:
$2,432,157 $3,097,039 $6,042,218 $3,157,665 $1,520,968 $4,678,633 Summary of Recommended Expenditure Appropriations by Fund Fund Type
FY2022/2023
Actuals
FY2023/2024
Adopted
FY2023/2024
Adjusted
FY2024/2025
Adopted
Budget
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
Agency/Custodial
Funds: $918,062 $1,493,963 $2,059,104 $1,457,860 $1,006,337 $2,464,197 Agency/Custodial
TOTAL:
$918,062 $1,493,963 $2,059,104 $1,457,860 $1,006,337 $2,464,197 Fund Balance +/- $1,514,095 $1,603,076 $3,983,114 $1,699,805 $514,631 $2,214,436 TOTAL REVENUE & EXPENDITURE APPROPRIATIONS (CITYWIDE BUDGET & FIDUCIARY):
FY2022/2023
Actuals
FY2023/2024
Adopted
FY 2023/2024
Adjusted
FY2024/2025
Adopted
Budget
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
Total Revenues: $159,690,168 $131,221,308 $198,484,162 $135,674,980 $3,881,493 $139,556,476 Total Expenditures: $137,403,060 $137,319,038 $274,807,761 $132,240,341 $6,277,896 $138,518,237 Fund Balance +/- $22,287,108 ($6,097,730) ($76,323,599) $3,434,639 ($2,396,403) $1,038,239 Note: The Proposed Budget includes the deliberate one-time use of the available excess fund balance, primarily for CIP projects. Use of available excess fund balance does not use any City Reserve Funds.
Table 9 on the following page summarizes the recommended appropriations by category according to Fiscal Year.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 7
Menifee Mayor and City Council
June 5, 2024
Page
1014 of 1108
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TABLE 9: SUMMARY OF CITYWIDE BUDGET RECOMMENDED FY2024/2025 BUDGET
ADJUSTMENTS BY FUND TYPE & EXPENDITURE CATEGORY
General Fund
General Fund Proposed FY2024/2025 Adjusted Budget
Category
FY2022/2023
Actuals
FY2023/2024
Adjusted
FY2024/2025
Adopted
Budget
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
Revenue:
Sales Tax $12,287,692 $12,880,452 $13,469,380 ($876,990) $12,592,390 Property Tax $20,538,212 $21,480,342 $22,801,919 $0 $22,801,919 Building/Engineering/ Planning/Fire Fees $13,694,189 $12,648,213 $13,280,624 $767,696 $14,048,320 Vehicle License Fee $9,687,677 $10,726,533 $11,141,656 $68,456 $11,210,112 Franchise Fees $4,902,176 $ 4,875,000 $5,055,000 $432,753 $5,487,753 Other $15,489,620 $11,864,697 $7,335,315 $807,282 $8,142,597 Total Revenue: $76,599,566 $74,475,237 $73,083,894 $1,199,197 $74,283,091 Expenditures:
Personnel $31,857,336 $34,496,303 $35,476,787 $265,955 $35,742,742 Operating & Maintenance $22,307,000 $32,441,985 $27,770,848 $888,366 $28,659,214 Capital Outlays &
One-Time Studies $258,238 $1,799,229 $911,000 ($400,000) $511,000 Transfers & Allocations $7,793,987 $8,041,623 $8,875,259 $558,750 $9,434,009 Capital Projects (CIP) $2,063,156 $13,495,724 $50,000 $0 $50,000 Debt Issuance & Debt Service $0 $0 $0 $0 $0
Total Expenditures: $64,279,717 $90,274,864 $73,083,894 $1,313,071 $74,396,965
Fund Balance +/- $12,319,849 ($15,799,627) $0 ($113,874) ($113,874) Quality of Life
Quality of Life Proposed FY2024/2025 Adjusted Budget
Category
FY2022/2023
Actuals
FY 2023/2024
Adjusted
FY
2024/2025
Adopted
FY2024/2025
Adjustments
FY 2024/2025
Proposed
Adjusted
Budget
Revenue:
Sales Tax $19,634,904 $20,913,120 $21,449,750 ($998,750) $20,451,000 Interest Revenue $293,389 $175,000 $135,000 $265,000 $400,000 Total Revenue: $19,928,293 $21,088,120 $21,584,750 ($733,750) $20,851,000 Expenditures:
Personnel $5,586,116 $6,994,760 $7,138,783 $0 $7,138,783 Operating & Maintenance $12,018,381 $13,159,172 $14,049,927 ($733,750) $13,316,177 Capital Outlays &
One-Time Studies
$1,108,873 $746,603 $0 $0 $0
Transfers & Allocations $0 $0 $0 $0 $0
Capital Projects (CIP) $748,442 16,875,896 $396,040 $1,375,000 $1,771,040 Debt Issuance & Debt Service $0 $0 $0 $0 $0
Total Expenditures: $19,461,812 $37,776,431 $21,584,750 $641,250 $22,226,000
Fund Balance +/- $466,481 ($16,688,311) $0 ($1,375,000) ($1,375,000) Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 8
Menifee Mayor and City Council
June 5, 2024
Page
1015 of 1108
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GENERAL FUND & QUALITY OF LIFE TOTALS
FY2022/2023
Actuals
FY2023/2024
Adjusted
FY2024/2025
Adopted
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
Revenues $96,527,859 $95,563,357 $94,668,644 $465,447 $95,134,091 Expenditures $83,741,529 $128,051,295 $94,668,644 $1,954,321 $96,622,965 Fund Balance +/- $12,786,330 ($32,487,938) $0 ($1,488,874) ($1,488,874) \
Gas Tax & Special Tax Revenue Funds
Gas Tax & Special Tax Revenue Funds Proposed FY2024/2025 Adjusted Budget Category
FY2022/2023
Actuals
FY2023/2024
Adjusted
FY2024/2025
Adopted
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
Revenue:
Internal Service Funds (ISF) $8,108,673 $8,488,114 $9,308,685 ($121,598) $9,187,087 Gas Tax & Other Special Revenue Funds $16,501,932 $41,046,012 $10,078,440 $582,329 $10,660,769 LLMD Funds $897,695 $899,182 $886,189 $44,978 $931,167 CFD Funds (Maintenance) $5,145,961 $5,912,351 $5,945,332 $1,035,367 $6,980,699 CFD Funds (Infrastructure) $11,274,669 $26,504,883 $0 $0 $0 CSA Funds $1,910,939 $3,507,461 $1,909,576 $21,284 $1,930,860 DIF/Quimby/RBBD Funds $14,359,833 $8,453,839 $7,702,445 $269,313 $7,971,758 Capital Project Fund $765,001 $304,685 $258,679 $52,533 $311,212 Debt Service Fund (Transfer In) $1,765,478 $1,762,060 $1,759,325 $10,870 $1,770,195 Total Revenue: $60,730,181 $96,878,587 $37,848,671 $1,895,076 $39,743,747 Gas Tax & Special Tax Revenue Funds (Continued)
Gas Tax & Special Tax Revenue Funds Proposed FY2024/2025 Adjusted Budget Category
FY2022/2023
Actuals
FY2023/2024
Adjusted
FY2024/2025
Adopted
FY2024/2025
Adjustments
FY2024/2025
Proposed
Adjusted
Budget
Expenditures:
Personnel $3,963,536 $6,130,718 $6,362,543 $13,609 $6,376,152 Operating & Maintenance $19,991,075 $45,816,091 $12,984,631 $426,285 $13,410,916 Capital Outlays & One-Time Studies $1,385,942 $2,465,733 $562,948 $1,031,250 $1,594,198 Transfers & Allocations $5,080,487 $4,649,697 $2,628,218 ($3,910) $2,624,308 Capital Projects (CIP) $19,806,179 $82,578,367 $11,906,172 $1,850,000 $13,756,172 Debt Issuance & Debt Service $2,516,248 $3,056,757 $1,669,325 $0 $1,669,325 Total Expenditures: $52,743,467 $144,697,363 $36,113,837 $3,317,234 $39,431,071
Fund Balance +/- $7,986,714 ($47,818,776) $1,734,834 ($1,422,158) $312,676 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 9
Menifee Mayor and City Council
June 5, 2024
Page
1016 of 1108
City of Menifee Staff Report
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TOTAL CITYWIDE BUDGET
FY2022/2023
Actuals
FY2023/2024
Adjusted
FY2024/2025
Adopted
FY2024/2025
Adjustments
FY 2024/2025
Proposed
Adjusted
Budget
Revenues: $157,258,040 $192,441,944 $132,517,315 $2,360,523 $134,877,838 Expenditures: $136,484,996 $272,748,658 $130,782,481 $5,271,555 $136,054,036 Fund Balance +/- $20,773,044 ($80,306,714) $1,734,834 ($2,911,032) ($1,176,198) Strategic Plan Alignment and Implementation:
In the development and review of the proposed FY2024/2025 Mid-Cycle Budget, staff has integrated City Council’s Strategic Plan (2023 - 2028) goals and has addressed them in the following ways:
✓Continued investment in the City infrastructure needs, with a robust CIP proposed for the next two (2) years, and additional staffing to support program delivery. ✓Expanded communication efforts concentrated on meeting the needs of the diverse Menifee community.
✓Strategic Plan specific action items have been incorporated as part of the proposed FY 2024/2025 Adjusted Budget.
Fiscal Year 2023/2024 Budget Update
Year 1, FY2023/2024, of the two-year budget cycle is set to formally complete in June 2024, with final year-end transactions concluding in August/September 2024. Tables 7, 8, and 9 in the sections above reflect the current FY2023/2024 Adjusted Budget, inclusive of the FY2023/2024 Mid-Year review and any subsequent activity. A comprehensive year-end and Budget to Actuals report is tentatively scheduled for October 2024 to provide a year-end status on the following:
- Budget Carryover Activities
- Actual Revenues/Expenditures vs. Adjusted Budget
- Assigned Fund Balance(s) account status
- CIP Program activity completed during the fiscal year ended.
In December 2024/January 2025 City Council will also receive the formal audited year end ACFR.
Current Economic Outlook (National, State, Regional & Local) & Revenue Analysis The adopted FY 2024/2025 budget reflected a cautiously optimistic fiscal outlook, with steadily increasing revenues against the backdrop of an overall uncertain national and local economy. At a more localized level, the City of Menifee continues to see steady growth. Throughout FY 2022/2023 five of the six top main City revenues (Sales Tax, Quality of Life, Property Tax, Franchise Fees) experienced some growth, however, at a slower pace than the prior two fiscal years. Development related fees experienced a significant decrease in the first half of FY 2022/2023, particularly compared to the last two fiscal years where the City had experienced record revenue receipts in this category, but ended with a stronger performance at the end of the fiscal year.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 10
Menifee Mayor and City Council
June 5, 2024
Page
1017 of 1108
City of Menifee Staff Report
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As discussed during the FY2023/2024 Mid-Year Budget review, going into the second half of Fiscal Year 2023/2024, collectively revenue growth has stabilized to a slower pace, compared to prior years. And while Sales Tax and Quality of Life revenues are still projected to exceed adopted/adjusted revenues for FY2023/2024, this is primarily attributed to one-time sales tax revenue generated from the Nova Park battery storage construction underway in 2024. All other sales transaction activity has performed slightly below original budget projections. Development revenue has been in pace with the original budgeted estimates, but without significant growth.
Nationally, statewide and regionally, lingering inflation has stabilized, with a 3.5% March 2024 CPI.
Unemployment as of March 2024 was around 3.8% at the national level and 5.3% statewide.
However, housing permit activity, consumer confidence and manufacturing data reflect overall slower growth with weaker sales growth. With interest rates forecast to not undergo additional increases, but also gradual decreases, overall economic growth for the upcoming fiscal year is projected to be modest, if at all. Incorporating updates to the overall economic background for the upcoming fiscal year, the FY2024/2025 Mid-Cycle includes several revenue adjustments discussed below.
General Fund & Quality of Life Funds Recommended FY2024/2025 Revenue Adjustments Revenue Analysis & Recommendation
The adjusted FY 2024/2025 proposed General Fund revenue is $74,283,091 and the Quality of Life totals $20,851,000, for a combined total of $95,134,091, representing an overall increase of $465,447 from the adopted $94,668,644.
The City’s top six budgeted revenue sources for the General Fund, inclusive of Quality of Life are listed within Table 10. Together, these six revenue sources represent 92.25% of the total General Fund and Quality of Life revenues of the FY2024/2025 Budget. Based on the revenue analysis discussed in the preceding section relative to the City’s top six revenue sources in the upcoming fiscal years, staff is recommending the following revenues adjustments for the General Fund and Quality of Life Funds as reflected in Table 10 on the following page. Other minor revenue adjustments totaling $57,282 (Charges for Services, Transfers) are included as part of the recommended adjustments.
TABLE 10: TOP 6 CITY REVENUES & INTEREST (FY2024/2025 PROPOSED ADJUSTMENTS) Revenue Description FY 2024/2025
Adopted
FY 2024/2025
Proposed
Adjustments
FY 2024/2025
Adjusted Budget
Review/Analysis & Recommendations
1. Sales Tax $13,469,380 ($876,990) $12,592,390 Net decrease of $876,990 based on revised HdL projections for FY2024/2025.
While the next 5-year projections for Sales
Tax revenue show overall growth, the
FY2024/2025 reflects a decrease in
projected activity, reflective of overall
national, state, regional and local trends.
2. Quality of Life $21,449,750 ($998,750) $20,451,000 Net decrease of $998,750 based on revised HdL projections for FY2024/2025
offset by interest revenue increases. While
the next 5-year projections for Quality of
Life revenue show overall growth, the
FY2024/2025 reflects a decrease in
projected activity, reflective of overall
national, state, regional and local trends.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 11
Menifee Mayor and City Council
June 5, 2024
Page
1018 of 1108
City of Menifee Staff Report
Fiscal Year 2024/2025 Mid-Cycle Adjusted Budget Adoption June 5, 2024
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Revenue Description FY 2024/2025
Adopted
FY 2024/2025
Proposed
Adjustments
FY 2024/2025
Adjusted Budget
Review/Analysis & Recommendations
3. Property Tax $22,801,919 $0 $22,801,919 No recommended adjustments from FY2024/2025 adopted budget.
4. Building/Planning/
Engineering/Fire
Fees (Development
Fees)
$13,280,624 $767,696 $14,048,320 Revised projections reflect current active development projects underway and
anticipated in FY2024/2025 as well as the
application of the annual CPI adjustment
(2.87%) to development fees.
5. Vehicle License Fee
(VLF)
$11,141,656 $68,456 $11,210,112 Expecting $68k increase from adopted projections based on revised HdL
Projections.
6. Franchise Fees $5,055,000 $432,753 $5,487,753 Proposed increase for waste hauler franchise fees and gas franchise fees
based on FY2022/2023 actuals and year-
to-date Actuals for FY2023/24.
N/A Interest Income
(General Fund &
Quality of Life)
$635,000 $1,015,000 $1,650,000 Proposed increase of $750k in interest income in the General Fund and $265k for
Quality of Life based on FY2022/2023
actuals and year-to-date actuals for
FY2023/24, and projected investment
activity in the upcoming year.
General Fund: FY2024/2025 Proposed Expenditure Adjustments Recommendations The proposed FY 2024/2025 General Fund Budget adjustments total $1,954,321 (General Fund & Quality of Life) for a revised Adjusted Budget of $96,622,965 (Adopted FY2024/2025 totaled $94,668,664).
The proposed expenditure adjustments are summarized in Table 11 on the following page.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 12
Menifee Mayor and City Council
June 5, 2024
Page
1019 of 1108
City of Menifee Staff Report
Fiscal Year 2024/2025 Mid-Cycle Adjusted Budget Adoption June 5, 2024
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TABLE 11: FY2024/2025 GENERAL FUND & QUALITY OF LIFE RECOMMENDED
APPROPRIATIONS
Category Description Adjustment
Amount ($)
Operating & Maintenance Increased insurance premiums* (General Liability, Worker’s Compensation Insurance Premiums and/or Claims)
$341k
Operating & Maintenance Dispatch Services: Increases for services per labor MOU negotiations for dispatch personnel.
$150k
Operating & Maintenance Animal Field Services: Increases for animal field services based on increased service activity.
$107k
Operating & Maintenance/
Personnel
Aquatics Program, Council Stipends Increase, FY2023/2024 Mid- Year Personnel Adjustments: Previously approved items.
$289k
Operating & Maintenance Development Software (Accela/Bluebeam) Integration: Integration of Accela/Bluebeam software, offset by Technology Surcharge revenue $34k
Operating & Maintenance Fire Contract Services (Quality of Life to General Fund) Funding Update: To balance the revised revenue projection decrease of $733,750 in the Quality of Life fund, corresponding expenses in the amount of $733,750 will be transferred into the General Fund.
$0 (Expenditure
Transfer)
Capital Outlays/One-Time
Study
Dispatch Services – Technology System Update: Required dispatch system technology update.
$50k
Capital Outlays/One-Time
Study
Safety Master Plan (Strategic Plan Item) $100k
Capital Outlays Menifee PD Replacement Vehicles (Funding Update to DIF & ARPA)**:
Required dispatch system technology update.
($664k)
CIP Program CIP 23-13: Cherry Hills Facility, Phase I $1.375M * As the City’s operations and workforce have expanded over the last several years, and the overall insurance market continues to see premium increases, the proposed Adjustment amount reflects the additional cost of the City changing from a $150k to $300k Self Insured Retention (SIR) for General Liability and $50k to $200K SIR for Workers Compensation. Should the City elect to maintain existing SIR levels, the required adjustment amount would result in additional $744k adjustment. To mitigate the financial risk to larger claims, staff proposes a dedicated Assigned Fund Balance account for SIR and Insurance Premium increases.
** Funding of $664k for the purchase of eight (8) Menifee PD patrol vehicles will be replaced with American Rescue Plan (ARP), $445,472 and DIF 525 (Law Enforcement), $218,528.
The Fiscal Year 2024/2025 adopted budget of $19,918,691 for Fire Contract Services is proposed to be maintained as adopted. However, based on communication from the County of Riverside, the city anticipates realizing a one-time savings of approximately $764,000 from one time state labor savings. That one-time savings will be directed/transferred into an Assigned Fund Balance Fire Equipment Replacement account, as various larger fire equipment/vehicles will need to be purchased in the near future.
In total proposed adjusted FY 2024/2025 General Fund and Quality of Life Budget expenditures is $96,622,965, consisting of the following two (2) main components. -Operating Budget (General Fund/Quality of Life), Proposed FY 2024/2025 Adjusted Budget: $94,801,925
oOperations & Maintenance Costs
oPersonnel Costs
oContract Services
oCapital Outlays & One-Time Studies
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 13
Menifee Mayor and City Council
June 5, 2024
Page
1020 of 1108
City of Menifee Staff Report
Fiscal Year 2024/2025 Mid-Cycle Adjusted Budget Adoption June 5, 2024
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-Capital Budget (General Fund/Quality of Life), Proposed FY 2024/2025 Adjusted Budget: $1,821,040
oInfrastructure Projects
Deliberate Use of Fund Balance:
The proposed expenditure adjustments include the deliberate use of fund balance in the amount of $1,709,792 for the following purposes:
- General Fund Unassigned Fund Balance in the amount of $150,000 for the Safety Master Plan ($100,000) and for the Dispatch Services Technology Update ($50,000). - General Fund Assigned Fund Balance AMR Fees in the amount of $150,792 for the Purchase 25 automated external defibrillator from AMR Fees; and the purchase of 21 thermal imaging units for fire suppression personnel from AMR Fees. This fund balance is restricted in use and can only be used for specific eligible purposes. - General Fund Assigned Fund Technology Surcharge in the amount of $34,000 for the purchase of Accela/Bluebeam software integration. This fund balance is restricted in use and can only be used for specific eligible purposes. - Quality of Life Unassigned Fund Balance in the amount of $1,375,000 towards the CIP 23-13 Cherry Hills Facility Phase I Project.
Staffing/Personnel FY2024/2025 Adjustment Recommendations As part of the FY2024/2025 Mid-Cycle review process, personnel updates/changes were also reviewed. The proposed adjusted FY2024/2025 Budget supports a proposed workforce of 332.5 (300 full-time and 32.5 part-time) positions. At budget adoption in June 2023, the adopted workforce for FY2023/2024 and FY2024/2025 included 330.40 (302 full-time and 28.4 part-time) positions. The net increase in personnel count is represented by the part-time personnel necessary to implement the Aquatics Program as approved in December 2023 and the FY2023/2024 Mid- Year Budget process. FY2024/2025 staffing recommendations include a net decrease of two positions and reclassification of 6 positions. The various personnel requests and corresponding additional fiscal impact is summarized in the following table.
TABLE 11: RECOMMENDED PERSONNEL REQUESTS (FY2024/2025)
No. Department Position Title FTE FY2024/2025
Additional
Personnel
Costs
Justification
1 Community
Services
Management Analyst II
Funding Source: General
Fund/Special Districts)
N/A
Reclassification
$10,020 Reclassification Request: Reclassification
from Management Analyst I
Request based on Classification and
Compensation Study recommendations and
operational needs.
2 Engineering Management Aide
Funding Source: General
Fund/Special Districts)
N/A
Reclassification
$7,527 Reclassification Request: Reclassification
from Administrative Assistant.
Request based on Classification and
Compensation Study and operational needs.
3 Engineering Public Works Inspector II
Funding Source: General Fund
N/A
Reclassification
$10,911 Reclassification Request: Reclassification
from Public Works Inspector I.
Request based on Classification and
Compensation Study and operational needs.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 14
Menifee Mayor and City Council
June 5, 2024
Page
1021 of 1108
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7 3
No. Department Position Title FTE FY2024/2025
Additional
Personnel
Costs
Justification
4 Menifee PD Lieutenant
Funding Source: General
Fund
N/A
Reclassification
$47,655 Reclassification Request: Reclassification
from Sergeant.
Provides management support to Menifee
PD patrol operations.
5 Human
Resources**
Human Resources Director
Funding Source: General Fund
N/A
Reclassification
$67,745 Reclassification request: Reclassification
from Deputy HR Director based on
department restructure and operational
needs.
6 Economic
Development**
Economic Development
Manager
Funding Source: General Fund
N/A
Reclassification
($105,192) Reclassification request: Reclassification
from Economic Development Director based
on department restructure and operational
needs.
7 Fire* Office Specialist
Funding Source: General Fund
(1) ($81,908) Elimination of position as City personnel, absorbed as part of Fire contract personnel.
8 Finance ERP Administrator
Funding Source: General Fund
(1) $0
(savings
redirected to
overall ERP
Project)
Update vacant position to unfunded for
upcoming fiscal year.
TOTAL (2) ($43,242)
* Position will be eliminated as City personnel and absorbed as part of existing fire contract. 1x savings of $81,908 from overall fire contract savings expected for FY2024/2025.
** HR and Economic Development Reclassifications requests overall offset any need for additional budget appropriations. These reclassifications were not included as part of the May 15 th workshop. However, these personnel changes were identified as part of the two corresponding departments’ restructuring.
Special Revenue & Other Funds Proposed FY2024/2025 Adjustment Recommendations The City uses Special Revenue Funds & Other Funds to account for restricted revenues received by the City and its component units. Restricted revenues cannot be deposited into the General Fund and must be accounted for separately. Some of these revenues fund ongoing operations, and some of these revenues fund the CIP, or both.
Proposed Revenue FY2024/2025 Adjustments totaling $1.895 million, include:
-Interest Earnings Adjustments
-Revenue for reprogrammed ARPA projects
-Additional special assessment revenue for CFDs (new development) -Lighting and Landscape Maintenance (LLMDs), County Service Area (CSAs), Community Facilities Districts (CFDs) annual CPI adjustments, where applicable.
Proposed Expenditure FY2024/2025 Adjustments include:
-Additional funding for Priority CIP Projects ($1,850,000) -Grant Fund/ Development Impact Fee (DIF) Fund: Funding update for Menifee PD Patrol Vehicles from General Fund/ISF to ARP Program ($445,472) & DIF Law Enforcement ($218,528)
-CFD Funds: Personnel reclassification requests (portion of costs) -Air Quality Management District (AQMD) Fund: Purchase of Ford Maverick (Fleet)($35,000)
-PEG Fund: A/V Hardware/Equipment (Encoder & storage) ($42,250) Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 15
Menifee Mayor and City Council
June 5, 2024
Page
1022 of 1108
City of Menifee Staff Report
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-IT Fund: CS Recreation Software System ($100,000), Phone System Replacement ($100,000), Computer/Getac Equipment Replacement ($350,000). This would include the deliberate use of IT Fund balance in the amount of $550,000. -LLMDs, CSAs, CFDs: Property Tax Finder portal ($24,000) TABLE 12: TOTALS SUMMARY FY2024/2025 SPECIAL REVENUE & OTHER FUNDS
BUDGETS
Description FY2024/2025 Adopted FY2024/2025 Proposed
Adjusted Budget
Total Revenues $37,848,671 $39,743,747
Total Expenditures $36,113,837 $39,431,072
Fund Balance +/- $1,734,834 $312,675
CIP Program FY2024/2025 Adjustment Recommendations & Five-Year (2023-2028) CIP Program Updates
The proposed adjusted FY 2024/2025 CIP budget includes a total of 27 projects with a proposed budget of $15,577,212. The proposed projects address high priority infrastructure needs of the community. The following tables summarize the proposed FY 2024/2025 CIP Program adjustments and FY 2023-2028 CIP by Project Category:
TABLE 13: PROPOSED ADJUSTED FY2024/2025 CIP BUDGET
FY2024/2025 Adopted Budget FY2024/2025 Proposed
Adjusted Budget
PROJECT CATEGORY
# OF
PROJECTS
ADOPTED
AMOUNT ($)
# OF
PROJECTS
REQUESTED
AMOUNT ($)
Transportation 3 $2,859,237 4 $3,859,237
Traffic Signals 2 $1,378,094 2 $1,378,094
Street Improvements 3 $1,692,000 3 $1,692,000
Pavement Management (PMP) 4 $4,132,000 3 $4,287,000 Drainage 3 $749,000 3 $749,000
Streetlights 0 - 0 - Public Facilities 1 $108,548 6 $2,008,548 Parks, Trails, and Recreation 3 $1,200,000 4 $1,300,000 Technology Infrastructure 2 $233,333 2 $303,333 TOTAL 21 $12,352,212 27 $15,577,212
The proposed FY 2024/2025 adjustments were developed within the context of a 2023-2028 CIP Plan. Table 14 on the following page provides the current CIP Budget. In summary, the following projects and/or funding adjustments were added to the FY2024/2025 and 2023-2028 CIP Program.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 16
Menifee Mayor and City Council
June 5, 2024
Page
1023 of 1108
City of Menifee Staff Report
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TABLE 14: FY2024/2025 AND FY2023-2028 PROPOSED ADJUSTMENTS CIP PROGRAM DETAIL
Project Category Project Number & Name FY2024/2025
Adjustment ($)
Notes
Transportation CIP 20-01: Scott Road Bundy
Canyon Widening
$1,000,000 Additional funding for design and ROW
acquisition.
PMP CIP 25-07: FY24-25 Local
Roads AC Resurfacing Project
$155,000 Additional funding for construction of
ADA ramps and street resurfacing.
Public Facility CIP 21-04: New Fire Station
#5 (Quail Valley)
$200,000 Additional funding to continue
construction management and
inspection efforts for the project.
Public Facility CIP 23-10: Community
Center/Recreation Center
$200,000 Additional funding to leverage matching
local funds when applying for grants.
Public Facility CIP 23-13: Cherry Hills Facility
Phase I
$1,375,000 Additional funding for existing project.
Public Facility CIP 24-05: Fire Station #76
Living Area Improvements
$75,000 Additional funding for the construction
phase.
Public Facility Kay Ceniceros Display Sign $50,000 New Project. Replacement of existing LED sign.
Parks, Trails & Recreation CIP 24-22: Sun City Blvd.
Street Medians
$100,000 Additional funding for the construction
phase.
IT CIP 25-02: Axon RMS System ($50,000) Project cancelled at the request of the Police Department.
IT City Hall Back-Up Generator $120,000 New Project. Installation of emergency back-up generators at City’s server room.
Parks, Trails & Recreation Banner Park Playground
Enhancement
$0 New Project. This project would install
additional playground/amenities at Banner
Park. Estimated Project Cost, $350,000,
Funding Status: Unfunded. Added to 5-
Year CIP Program as Priority 3 Project.
Street Improvements Goetz Road Pedestrian
Improvements - Rock Canyon Dr.
to Audie Murphy Rd.
$0 New Project. This project would add
2,300 linear feet of pedestrian/bicycle
facilities along one side of Goetz Road.
Estimated Project Cost, $950,000,
Funding Status: Unfunded. Added to 5-
Year CIP Program as Priority 3 Project
TOTAL $3,225,000
TABLE 15: CIP 5-YEAR (2023-2028) SUMMARY BY PROJECT CATEGORY PROPOSED
REVISED SUMMARY
FY 2023-2028PROJECT CATEGORY
# of Projects Estimated Cost
Transportation 35 $403,826,737
Traffic Signals 25 20,433,494
Street Improvements 32 32,884,238
Pavement Management (PMP) 33 33,942,614
Drainage 10 20,140,000
Streetlights 4 2,600,000
Public Facilities 23 177,637,319
Parks, Trails, and Recreation 30 46,252,063
Technology Infrastructure 3 2,003,333
TOTALS 194 $739,719,798
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 17
Menifee Mayor and City Council
June 5, 2024
Page
1024 of 1108
City of Menifee Staff Report
Fiscal Year 2024/2025 Mid-Cycle Adjusted Budget Adoption June 5, 2024
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American Rescue Plan (ARP) Funds
On March 11, 2021, Congress and the executive branch, passed the $1.9 trillion ARP economic stimulus plan intended to address the on-going impacts of the unprecedented COVID-19 pandemic. All local governments, including the City of Menifee received direct funding to help bridge budget shortfalls and mitigate the impacts of COVID-19. The ARP provides that the funds can be used for COVID-19 related expenses incurred between March 3, 2021, and December 31, 2024.
The City of Menifee has received just over $13 million in direct federal assistance as part of the ARP Program. Pursuant to the ARP program requirements, all ARP funding must be encumbered no later than December 31, 2024 and fully expended by December 31, 2026. To ensure timely expenditure of this funding, the FY2024/2025 adjustments include reprogramming of remaining funding to one-time capital outlays and/or capital projects.
Table 16 provides a historical summary of all ARP approved expenditures to date.
TABLE 16: ARP SUMMARY OF APPROVED EXPENDITURES THROUGH FY 2023/2024 MID-YEAR
CATEGORY PROJECT DESCRIPTION PROJECT
STATUS
AMOUNT
ALLOCATED ($)
AVAILABLE TO
REPROGRAM
Support Public Health
Response
Menifee PD: Micro-Robots Completed $9,999 $0
Replace Public Sector
Revenue Loss
(Government Services)
FY 21/22 Salaries (Personnel Costs) Completed $3,616,644 $0 Replace Public Sector
Revenue Loss
(Government Services)
Human Resources: Neo-Gov Training
Module
Completed $61,513 $0
Replace Public Sector
Revenue Loss
(Government Services)
Information Technology: Smart Cities
& Broadband Master Plan
Completed
(Reprogram
Balance)
$162,050 $5,000
Support Public Health
Response
Mass Notification System - Would
provide a dedicated system/solution
to communicate with public regarding
public health (Covid-19) updates and
other emergency alerts
Completed
(Reprogram
Balance)
$120,000 $495
Water & Sewer
Infrastructure
Holland Road Sewer & Recycled
Water Improvements - Adding
recycled water/sewer components for
existing properties.
Completed $500,000 $0
Replace Public Sector
Revenue Loss
(Government Services)
M.E.N.U Grant Program - Provides
direct economic support to start-up
businesses
Reprogram
Funding
$500,000 $470,000
Support Public Health
Response
City Hall/PD HQ Enhanced Cleaning
Services, PPE, Masks, Covid-19
Testing etc.
Completed
(Reprogram
Funding)
$157,459 $119,807
Replace Public Sector
Revenue Loss
(Government Services)
FY 21/22 Salaries (Personnel Costs)
& Home Repair Program ($500k)
Completed $2,010,210 $0
Replace Public Sector
Revenue Loss
(Government Services)
Fire Station #68 Tenant
Improvements Project
Completed
(Reprogram
Balance)
$329,429 $170
Replace Public Sector
Revenue Loss
(Government Services)
New Fire Station #5 Construction Underway $1,000,000 $0 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 18
Menifee Mayor and City Council
June 5, 2024
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CATEGORY PROJECT DESCRIPTION PROJECT
STATUS
AMOUNT
ALLOCATED ($)
AVAILABLE TO
REPROGRAM
Replace Public Sector
Revenue Loss
(Government Services)
Purchase of Sun City Property -
Provides an opportunity to use
funding as one-time use to help
address/alleviate spacing needs.
Underway $2,215,000 $0
Replace Public Sector
Revenue Loss
(Government Services)
JOBS Program (Economic
Development)
Underway $158,334 $0
Replace Public Sector
Revenue Loss
(Government Services)
CIP Program: Paloma Pedestrian
Bridge
Underway $531,369 $0
Replace Public Sector
Revenue Loss
(Government Services)
CIP Program: Central Park
Amphitheater
Underway $1,841,667 $0
TOTAL $13,213,674 $595,472
As part of the FY 2024/2025 Mid-Cycle, staff is recommending using ARP funds for the following high priorities:
TABLE 17: ARP FUNDING RECOMMENDATIONS SUMMARY FOR FY 2024/2025 MID-CYCLE CATEGORY PROJECT DESCRIPTION AMOUNT ($)
Replace Public Sector Revenue Loss
(Government Services)
CIP Program: Kay Ceniceros Display Sign $50,000
Replace Public Sector Revenue Loss
(Government Services)
CIP Program: Sun City Boulevard Street Medians
Project
100,000
Replace Public Sector Revenue Loss
(Government Services)
Menifee PD Patrol Vehicles Purchase 445,472
TOTAL $595,472
Agency/Custodial Funds (Fiduciary) Proposed FY2024/2025 Adjustments:
Included as part of the proposed overall revenue and expenditure appropriations are applicable agency/custodial funds, which represent Fiduciary appropriations. Specific to 2024/2025 Fiduciary appropriations adjustments are the revenues and expenditures for various bonded CFDs (Facilities). Revenues represent the annual special tax levies collected to pay all related expenditures for the CFDs, including administration costs, annual enrollment costs, and annual debt service payments. Proposed adjustments include revenue adjustments of $1,520,968 and expenditure adjustments of $1,006,337.
FY2024/2025 Gann Initiative Appropriation Limit and Appropriations Subject to Limit:
The City is required by state law to establish an appropriation limit each fiscal year. The appropriations limitation imposed by the state, otherwise known as the Gann Limit, creates a restriction on the amount of revenue that can be appropriated. Only those revenues received from proceeds of taxes are subject to this limit. Assessment on real property or persons, such as LLMDs, CFDs assessments etc., for special benefit conferred are not considered “proceeds of taxes” for purposes of the Gann Limit calculation. This means that only certain revenues from funds such as the General Fund, Quality of Life Measure, etc. are subject to the appropriation limit. Certain items, such as certain types of debt service costs, and qualified outlays are excluded from the Appropriations Subject to Limitation.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 19
Menifee Mayor and City Council
June 5, 2024
Page
1026 of 1108
City of Menifee Staff Report
Fiscal Year 2024/2025 Mid-Cycle Adjusted Budget Adoption June 5, 2024
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Utilizing the most current price factor and population data provided by the State of California, the City’s FY 2024/2025 appropriation limit is estimated to be $64,469,288 (Attachment 3). The actual amount of appropriations subject to the limit is $63,552,336. The difference between the City’s appropriation limit and the amount proposed to be appropriated that is subject to the limit is $916,952. As a result, the City, in accordance with State law, is below its appropriation limit.
Pursuant to state law the following actions must be completed with respect to the Gann Limit:
TABLE 18: GANN LIMIT ADOPTION PROCEDURES & ANNUAL REVIEW Category Description Status
1. 15 days prior to establishing the Appropriations Limit, make available to public, documentation used in the
determination of the Appropriation Limit.
Completed. Appropriations Limit for FY
2024/2025 made available May 2024.
2. By resolution of the governing board at a regularly
scheduled meeting, establish its Appropriations Limit
Included as part of recommended actions to
Mid-Cycle Budget Adoption (FY 2024/2025).
Adoption
Procedures
3. Publish the Appropriations Limit and the
Appropriations Subject to Limitation in the annual budget of the government entity.
Included as part of FY 2024/2025 Proposed
Adjusted Budget (staff report & budget).
Annual Review 4. Provide the Appropriations Limit and Appropriations Subject to Limitation to the State Controller’s Office, included with filing of the Annual Statement of Financial Transactions.
To be completed with corresponding year-
end/ACFR/State Controller’s Reports.
General Fund Reserve Fund Policy (CC-07) Update and Annual Budget Resolution:
Policy No. CC-07, Fund Balance Policy for the General Fund, as initially adopted June 21, 2011 and most recently updated in September 2021, provides a formal policy outlining the City’s minimum levels of unrestricted fund balance to address protection from and unexpected situations that require financial resources. As part of the city’s overall financial management and long-term planning efforts, reviewing the existing fund balance policy periodically provides an opportunity to assess if the existing structure and thresholds provides the agency with adequate reserves to support municipal operations.
In September 2021, the City Council adopted an updated Reserve Fund Balance Policy to set aside funds for future emergencies. The Policy established 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 reviewed the option of increasing the Reserve Fund percentage to 40% in FY2024/2025 as part of the Mid-Cycle analysis and review process. Based on the projected fund balance within the General Fund for June 30, 2024, the City would be able to increase the Reserve Fund Balance from 35% to 40%. Table 19 on the following page, reflects the proposed revised Reserve Requirement at 40% and based on the proposed additional expenditure adjustments.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 20
Menifee Mayor and City Council
June 5, 2024
Page
1027 of 1108
City of Menifee Staff Report
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TABLE 19: FY 2024/2025 ADJUSTED BUDGER RESERVE REQUIREMENT SUMMARY FY2024/25 Adopted Budget
(35% Reserve)
FY2024/25 Proposed Adjusted
Budget
(35% Reserve)
FY2024/25 Proposed Adjusted
Budget (40% ReserveI
Operating Stabilization Reserve (12.5%)
= $11,687,701
Operating Stabilization Reserve (12.5%)
= $11,822,616
Operating Stabilization Reserve (15%)
= $14,187,139
Operating Stabilization Reserve (12.5%)
= $11,687,701
Operating Stabilization Reserve (12.5%)
= $11,822,616
Operating Stabilization Reserve (15%)
= $14,187,139
Unassigned Fund Balance (10%)
= $9,350,160
Unassigned Fund Balance (10%) =
$9,458,093
Unassigned Fund Balance (10%)
= $9,458,093
Total: $32,725,562 Total: $33,103,324 Total: $37,832,370 *Calculated based on Operating Expenditures.
Additionally, as part of the overall review, staff received feedback on potential updates at the May 7, 2024 Finance Committee and May 15, 2024 Budget Workshop. Based on the review completed and feedback received, the following updates are recommended:
1. Reserves as Insurance: Dedicated reserves intended to guard the City against risks such as revenue instability, catastrophic events, and cashflow instability. Collectively, this represents the City’s current 35% Reserve Requirement, as discussed above. In the proposed update, staff is recommending increasing the City’s Reserve Requirement from 35% to 40%.
For general reference surrounding agencies have reserve requirements ranging from 17.5% to 35% of annual budgeted expenditures. However, each city has unique revenue and expenditure composition, with the corresponding fund policy developed upon such structure. As a newer and fast-growing city, Menifee has different financial and operational risks than a longer established City. By increasing its current Reserve Fund to 40%, the City can financially prepare for larger unforeseen conditions, including economic downturns, with more opportunities to make deliberate financial decisions. Further, the current policy only considers excess/available for use fund balance more than 40%, effectively maintaining 40% in reserves.
2. Assigned Fund Balances (Dedicated Savings): The second main update to the Reserve Policy includes incorporating the addition of dedicated Assigned/Committed/Restricted Fund Balance accounts intended to support larger expenditures not readily affordable within a single year’s budget. This will also allow for budget stabilization, to help mitigate significant increases from one year to the next and support larger capital projects. The proposed Assigned/Committed/Restricted Fund Balances include the following:
a. Self-Insured Retention (SIR) & Insurance Premium Assigned Fund Balance:
Funded at a minimum of $500k and intended to cover large General Liability and/or Workers Compensation Claims received in any given year. Additionally, this is meant to help cover significant increases in insurance premiums from one year to the next. This is proposed to have any unused Insurance Premiums and/or claims expenses budget remaining at the close of each year, be moved to this account.
Additionally, other expenditure savings may also be considered for deposit into this fund. The proposed FY2024/2025 Mid-Cycle review includes a recommendation to transfer at least $500k towards this fund balance. Contributions would be approved by the City Manager and reported to Council annually.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 21
Menifee Mayor and City Council
June 5, 2024
Page
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b. Fleet Replacement Assigned Fund Balance: Funded at a minimum of $1 million to support replacement of city vehicles from year to year. The proposed FY2024/2025 Mid-Cycle review includes a recommendation to transfer at least $1 million towards this fund balance. Contributions would be approved by the City Manager and reported to Council annually.
c. Pension Liability Assigned Fund Balance: Intended to help mitigate significant increases in the City’s unfunded pension liability from year to year. This is proposed to have any unused annual Unfunded Liability budget remaining at the close of each year, be moved to this account beginning with Fiscal Year 2023/2024. Additionally, other expenditure savings may also be considered for deposit into this fund. Contributions would be approved by the City Manager and reported to Council annually.
d. Public Facilities Assigned Fund Balance: Incorporating funding of the 40% Reserve Requirement (including 10% as Unassigned Reserves), the SIR, Fleet Replacement, and Pension Liability Assigned Fund Balance accounts, any excess fund balance remaining at the end of close of each fiscal year would be directed to a Public Facilities Assigned Fund Balance account. This account would be intended to provide periodic and deliberate contributions towards high priority public facility projects, including but not limited to the future City Hall, PD Headquarters, Public Works MOC Headquarters, and community center(s).
Contributions would be approved by the City Manager and reported to Council annually.
e. Public Facilities Committed Fund Balance: Periodic contributions approved by City Council to transferred from Public Facilities Assigned Fund Balance to support multi-year funding strategy for public facilities projects.
As of April 30, 2024 the projected surplus Fund Balance for General Fund is $5,356,685, incorporating a 40% Reserve Requirement based on the proposed Adjusted FY2024/2025 budget. This reflects fund balances inclusive of formally closing FY2022/2023, and any appropriation activity through April 2024. $150,000 of the projected surplus is recommended to be used in FY2024/2025 proposed expenditure adjustments (Safety Master Plan and Dispatch Services Technology Update). The remaining $5.2 million is recommended to fund: $500,000 towards the SIR & Insurance Premium Assigned Fund Balance Account, $1 million towards the Fleet Replacement Assigned Fund Balance Account, $3.7 million towards the Public Facilities Assigned Fund Balance Account, with $2 million of this transferred to the Public Facilities Committed Fund Balance.
Adjusted Budget Resolution Adoption:
In addition to the standard budget appropriations approval of the budget resolution formally adopting the proposed Adjusted FY2024/2025 Budget, the following items are recommended for inclusion:
1.Vehicle Purchases: To mitigate the continued operational challenge of vehicle purchases, the proposed Budget adoption resolution requests authorization for the City Manager to execute agreements and/or issue Purchase Orders for vehicle purchases and/or leases provided that:
- The vehicles purchases/leases are part of the approved budget appropriations. - All applicable purchasing requirements, such as bidding, are satisfied.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 22
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City of Menifee Staff Report
Fiscal Year 2024/2025 Mid-Cycle Adjusted Budget Adoption June 5, 2024
2 1
7 3
2 1
7 3
As part of the Mid-Year review process and in June of each year, staff would present a summary of vehicles purchased.
2. Budget Carry-Overs: Historically, the following items are eligible for carry-over:
a.Purchase Orders (PO)/Encumbrances representing contractual obligations. b.Unexpended appropriations for authorized, ongoing but incomplete projects, including the CIP Program and grant-funded programs/projects.
The proposed resolution clarifies carry-overs to include associated revenues, such as grant, TUMF program, and/or CEQA revenues not yet received, but expected to be received as expenses are realized. Additionally, authorized, ongoing but incomplete projects, is clarified to include: projects funded with restricted/specific Assigned Fund balance, including but not limited to, General Plan Maintenance Fee, Technology Surcharge, vehicle purchases, and/or one-time Council approved projects, including but not limited to, Strategic Plan projects/items, City Council approved community programs.
For FY2024/2025 some of the larger recommended one-time projects include the following Strategic Plan and/or community programs items recommended to carry-forward:
Placemaking, Identity Master Plan ($120,000) and the Special District Annexation Fiscal Impact Analysis ($60,000), and SB1383 Small Business Assistance Program ($161,770).
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
The Budget, when adopted, establishes a financial plan of expenditures based on the goals set by City Council. The proposed revised Citywide Budget and Fiduciary Funds budget is for FY 2024/2025 $139,556,476 in revenues and transfers-in and $138,515,237 in expenditures and transfers-out. Citywide budget expenditures, in particular with respect to CIP related expenditures, reflect deliberate use of fund balance(s) for larger projects.
ATTACHMENTS
1. Revised Policy (CC-07)
2. Revised Policy (CC-07) Redlined
3. Resolution – Budget Adoption
4. Resolution – FY 2024/2025 GANN Limit
5. Exhibit A – GANN Appropriation Limit Calculation
6. Resolution – Class and Comp
7. Exhibit A – Authorized Position Listing
8. Resolution – Revised CIP Adoption
9. Resolution - Public Facilities Committed Fund Balance
10. FY2024/2025 Mid-Cycle Summary Report
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 23
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Policy CC-07 , Page 1 of 9
CITY OF MENIFEE
City Council Policy
Policy Number : CC-07
Approving Authority:
City Council
Effective Date: 6/21/2011
Last Modified: 9/15/2021
Subject
Fund Balance Policy for the General Fund
1. PURPOSE
The purpose of this Policy is to establish the City's minimum levels of unrestricted fund balance to address protection from risk and unexpected situations that require financial resources. The identified fund balance levels will be maintained in various accounts to identify certain requirements for classifying fund balance in accordance with the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Definitions.
2. SCOPE/BACKGROUND
These policies/procedures apply to the General Fund of the City of Menifee as described below. The City of Menifee's primary financial objective is to maintain the fiscal stability of the organization. Fund balance is the difference between the assets and liabilities reported in a governmental fund. Unrestricted fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unrestricted fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. Having adequate financial resources will enable the City to achieve this objective and its mission of serving the citizens of Menifee.
3. POLICY
A. Governmental Fund Reserves (Fund Balance)
For Governmental Funds, the Governmental Accounting Standards Board ("GASB") Statement No. 54 defines five specific classifications of fund balance.
The five classifications are intended to identify whether the specific components of fund balance are available for appropriation and are therefore "Spendable." The classifications also are intended to identify the extent to which fund balance is constrained by special restrictions, if any. Applicable only to governmental funds, the five classifications of fund balance are as follows:
Item Title: 12.2
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CLASSIFICATION NATURE OF RESTRICTION
Non-spendable Restricted Cannot be readily converted to cash Restricted Externally imposed restrictions
Committed City Council imposed commitment
Assigned City Manager assigned purpose/intent
Unassigned Residual balance not otherwise not otherwise restricted The following components are defined by GASB statement 54 and shall be reflected in the City's Fund Balance designations:
i. Non-Spendable Fund Balance
That portion of fund balance that includes amounts that are either (a) not in a spendable form, or (b) legally or contractually required to be maintained intact. ii. Restricted Fund Balance
The portion of fund balance that reflects constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors, grantors , contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislat ion.
iii. Committed Fund Balance
Limitations imposed at the highest level of decision making that requires formal action at the same level to remove (City Council).
The City Council, as the City's highest level of decision-making authority , may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitme nt. City Council action to commit fund balance needs to occur within the fiscal reporting period ; however , the amount can be determined subsequently .
iv. Assigned Fund Balance
Assigned fund balance comprises amounts intended to be used by the government for specific purposes.
The City Council has authorized the City Manager or designee as the official authorized to assign fund balance to a specific purpose as approved by the fund balance policy. Such assignments cannot exceed the available (spendab le, unrestricted, uncommitted) fund balance in any particular fund.
v. Unassigned Fund Balance
That portion of a fund balance that includes amounts that do not fall into one of the above four categories . The General Fund is the only fund that will report this category of fund balance.
Item Title: 12.2
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Policy CC-07 , Page 3 of 9
vi. Reporting Encumbrances
Encumbering amounts in governmental funds for specific purposes for which resources have already been restricted, committed, or assigned should not result in a separate display of encumbered amounts. Encumbered amounts for specific purposes for which amounts have not been previously restricted, committed or assigned, will be classified as committed or assigned, as appropriate, based on the definitions and criteria set forth in GASB Statement No. 54.
vii. Hierarchy of Fund Balance Use
When multiple categories of fund balance are available for expenditure, the City will spend the most restricted funds first before moving down to the next category with available funds in the following order:
a. Restricted
b. Committed
c. Assigned
d. Unassigned
viii. Establishing An Operating Reserve Stabilization Fund Balance (Committed) Maintaining an Operating Reserve Stabilization Fund Balance is a necessity for sound financial management and fiscal accountability. The City Council has the authority to establish an Operating Reserve Stabilization Fund Balance that will be a Committed Fund Balance.
An Operating Reserve Stabilization Fund Balance in the General Fund is established for the purpose of providing funds for an urgent effect that affects the safety of residents, employees, or property (e.g., earthquake, wildfires, terrorist attack etc.). The minimum level for the Financial Stabilization Account is 15% of General Fund operating expenditures. The recognition of an urgent event must be established by the City Council by adoption of a resolution explaining the nature of the fiscal crisis and requires approval by a majority vote of the City Council in order for staff to utilize the funds set aside in the Operating Reserve Stabilization Fund Balance.
ix. Use of Operating Reserve Stabilization Fund Balance General Fund Operating Reserve Stabilization Fund Balance shall be used only to fund unanticipated needs and/or emergencies as described below:
Catastrophic Events and Major Disasters-The Financial Stabilization fund balance is to fund the extraordinary operating costs, legal costs and cash flow problems associated with delays in State and Federal reimbursements for any catastrophic event and major disaster (natural or man-made) declared by the City Council of their designee, or by the State of California, or by the federal government that are nonrecurring expenditures.
A budget revision must be approved by the City Council. A maximum of fifty percent of the prior year ending balance in the Operating Reserve Stabilization Fund may be used. At no time may the balance be less than 5 percent of the adopted annual appropriations, or half of the prior year ending balance, whichever is greater. x. Changes and Replenishment of Operating Reserve Stabilization Fund Balance Item Title: 12.2
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The City Council may, by a majority vote of its members, change the amount of this commitment and/or the specific uses of these monies. In the event that the balance drops below the established minimum level, the City Council will develop a plan to replenish the Operating Reserve Stabilization Fund Balance to the established minimum level within three years. The progress of replenishment should be reported in the annual budget. The City will use non-recurring revenues, budget surplus, proceeds from the sale of City- owned surplus property, and any other funds identified in the budget to increase the Operating Reserve Stabilization Fund Balance.
B. MINIMUM LEVEL OF FUND BALANCE
It is the goal of the City to achieve and maintain a minimum unrestricted (committed, assigned and unassigned) fund balance in its General Fund equal to 40% of the current year's budgeted operating expenditures. This percentage represents a balance roughly equal to four (4) months of operating expenditures. The Government Finance Officers Association (GFOA) recommends that "general-purpose governments, regardless of size, maintain unrestricted fund balance in their general fund of no less than two months (roughly 16.7%) of regular general fund operating revenues or regular general fund operating expenditures."1 The City considers a balance of less than 20% to be a cause for concern, barring unusual or deliberate circumstances. i. Committed Fund Balance for Operating Reserve Stabilization Fund The City's General fund balance committed for Operating Reserve Stabilization is established at a minimum of fifteen percent (15%) of the General Fund's current operating expenditures, to be used in a catastrophic event or major emergency. ii. Assigned Fund Balance for Economic Uncertainty Reserve Fund The City's Assigned for Economic Uncertainty Reserve Fund Balance is established at a minimum of fifteen percent (15%) of the General Fund's current operating expenditures, to be used during times of severe economic distress such as protracted recessionary periods, State raids on local resources, or other impactful unforeseen events which greatly diminish the financial ability of the City to deliver core services. The Assigned for Economic Uncertainty Reserve Fund Balance will be used during periods of economic distress as measured by one of the following triggers:
• Consumer Price Index exceeds the index for the previous year by more than five percent for two consecutive years.
• Local unemployment rate exceeds ten percent for three consecutive quarters. • The rate of inflation exceeds the growth in property tax revenue by five percent for two consecutive fiscal years.
1 GFOA Best Practice: Appropriate Level of Unrestricted Fund Balance in the General Fund (2002 and 2009) Item Title: 12.2
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Policy CC-07 , Page 5 of 9
• Significant State take-away of revenue totaling more than five percent of total revenue in a given fiscal year.
• Sales Tax revenue falls by ten percent of the previous quarter for at least three consecutive quarters .
• Revenue forecasts for the next fiscal year estimates revenue loss of more than seven percent.
iii. Unassigned Fund Balance
The City will achieve and maintain a minimum Unassigned Fund Balance in its General Fund of ten percent (10%) of the current year's operating expendi tures. This minimum fund balance is to protect against cash flow shortfalls related to timing of projected revenue receipts and to mainta in budgeted levels of service.
The Unassigned Fund Balance reserves may be used to provide temporary financing for unanticipated extraordinary needs, such as major storm drain repairs, or an unexpected liability created by Federal or State legislative action. If funds are appropriated (spent) from the operating reserves due to unanticipated needs, the funds should be replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance.
Authorized use of the Unassigned Fund Balance Reserves will require approval by the City Council.
iv. Replenishing Minimum Fund Balance Deficiencies
When minimum fund balance falls below the required threshold , the City Council must approve and adopt a plan to restore this balance to the target level within three years using the budget strategies described below:
• The City will use budget surplus
• The City will reduce recurring expenditures to eliminate any structural deficit or,
• The City will increase revenues or pursue other funding sources, or • A combination of the three options above
The progress of replenishment shall be reported in the annual budget. v. Deficit Fund Balance
If the fund balance is not positive at any year-end, the City shall develop a funding plan and a timeframe to bring it into a positive state.
The unassigned fund balance deficit in General Fund shall be restored through the following mechanisms , in order of priority :
• Reduction of (1) assigned fund balance levels, (2) committed fund balance levels;
• Transfer of unassigned fund balances from other related funds, if allowed. vi. Surplus Fund Balance
Unrestricted fund balance in the General Fund will be considered a surplus if over 40% Item Title: 12.2
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Policy CC-07 , Page 6 of 9
of the budgeted operating expenditures. If unrestricted fund balance of the General Fund exceeds 40%, the City may consider such fund balance surpluses to be used for (a) capital projects and equipment (b) dedicated/specific restricted, assigned and/or committed fund balances defined below (c) pay down long-term obligations, and/or (d) one-time expenditures that are non-recurring in nature, and which do not require additional future operating expenditure outlay for maintenance, additional staffing or other recurring expenditure. Appropriation from the General Fund's unrestricted fund balance shall require the approval of the City Council.
Surplus funds are determined upon the close of the fiscal year if revenues exceed actual expenditures within the General Fund. Special consideration shall be made by the Chief Financial Officer each year when determining potential Surplus Funds so as not to leave any General Fund supported fund balances without adequate funding and accommodate future year operating expenditure growth.
Allocation and Prioritization of Surplus Fund Balance use shall be as follows:
1. Assigned Fund Balance: Self Insured Retention (SIR)
2. Assigned Fund Balance: Fleet Replacement
3. Assigned Fund Balance: Pension Liability
4. Assigned Fund Balance: Public Facilities
5. Committed Fund Balance: Public Facilities
6. All other eligible uses as described in the previous paragraphs. vii. Surplus Fund Balance- Self Insured Retention & Insurance Premium (Assigned)
In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement, available and identified surplus funds will be transferred by direction of the City Manager into an established Self-Insured Retention (SIR) Assigned Fund Balance account, funded with a minimum balance of $500,000. Any unused budget for insurance premiums and/or claims expenses at the end of the year will be directed towards this Assigned Fund Balance. Additionally, other expenditure savings may also be considered for deposit into this fund.
viii. Surplus Fund Balance- Fleet Replacement (Assigned) In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement and Self-Insured Retention Assigned Fund Balance account is fully funded, any available and identified surplus funds will be transferred by direction of the City Manager into an established Fleet Replacement Assigned Fund Balance account, funded at with a minimum amount of $1,000,000. ix. Surplus Fund Balance- Pension Liability (Assigned) In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement, Self-Insured Retention Assigned Fund Balance, and Fleet Replacement Assigned Fund Balance, any unused budget for pension liability expenses at the end of the year and at direction of the City Manager will be directed towards this Fund Balance Account and set aside for Pension Liability related expenses. Additionally, Item Title: 12.2
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Policy CC-07 , Page 7 of 9
other expenditure savings may also be considered for deposit into this fund. The purpose of this assigned fund balance is to help offset future pension increases. x. Surplus Fund Balance- Public Facilities (Assigned) In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement, Self-Insured Retention Assigned Fund Balance, Fleet Replacement Assigned Fund Balance, and Pension Liability Committed Fund Balance, identified surplus funds will be transferred by direction of the available and identified surplus funds will be transferred by direction of the City Manager to this account set aside for construction of public facilities projects. i. Surplus Fund Balance-City Hall Commitment
In any year where total revenues exceed total expenditures (including capital expenditures), and the unrestricted fund balance of the General Fund exceeds 40%, the surplus may be transferred by direction of the City Council to the Committed Fund account set aside for construction of the future City Hall.
i. Surplus Fund Balance /Public Facilities (Committed) In any year where available balance exists within the Assigned Public Facilities account, and by direction of the City Council, periodic contributions will be transferred set aside for construction of public facilities projects.
4. PROCEDURES
A. Implementation and Review
Upon adoption of this policy the City Council authorizes the Finance Department to establish standards and procedures which may be necessary for its implementation. The City Council shall review and approve this policy via resolution at a minimum of every three (3) years to ensure it continues to meet the needs of the City given the economic factors and the current financial status at that time interval.
B. Calculation of Reserves
The reserves will be calculated using the following year’s Adopted General Fund budgeted operating expenditures.
5. RESPONSIBILITIES
A. City Council
i. Adopt fund balance policy.
B. City Manager
i. Determine appropriate levels of fund balance in accordance with adopted policy.
Item Title: 12.2
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C. City of Menifee, Finance
i. Chief Financial Officer to assign specific amounts for financial reporting purposes.
ii. Responsible for recording amounts according to adopted policy. iii. Responsible for ensuring that fund balance is properly reported in the City's Comprehensive Annual Financial Report (CAFR).
6. DEFINITIONS
Governmental Funds:
The following definitions will be used in reporting activity in governmental funds across the City. The City may or may not report all funds types in any given reporting period , based on actual circumstances and activity . • The general fund is used to account for all financial resources not accounted for and reported in another fund.
• Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt services or capital projects. • Debt service funds are used to account for all financial resource restricted, committed or assigned to expenditure for principal and interest. • Capital project funds are used to account for all financial resources restricted, committed, or assigned to expenditures for the acquisition or construction of capital assets.
• Permanent funds are used to account for resources restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's purposes.
Fund balance classification in governmental funds:
Fund balance is defined as the excess of total assets as compared to total liabilities in a governmental fund. GASB Statement No. 54 outlines the requirement to report the fund balance for governmental funds in specific classifications which create a hierarchy primarily based on the extent to which the City is bound to the constraints on the specific purposes for which funds can be spent. The Fund Balance consists of the following categories :
• Non-spendable Fund Balance : That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in a spendable form, such as prepaid items, inventories of supplies , or loans receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment.
• Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors (such as through debt covenants), granters, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. • Committed Fund Balance : That portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision- making authority and remain binding unless removed in the same manner.
Item Title: 12.2
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• Assigned Fund Balance: That portion of a fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes , but that are neither restricted nor committed . Such intent needs to be established at either the highest level of decision-mak ing, or by an official designated for that purpose.
• Unassigned Fund Balance: That portion of a fund balance that includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that will report this category of fund balance .
Stabilization Arrangement:
Per GASB Statement No. 54, governments have the option to formally set aside unrestricted fund balance amounts to use for budget or revenue stabilization, working capital needs, and contingencies or emergencies. The authority to set aside such amounts can be established by statute, ordinance, resolution, or charter. These amounts are subject to controls that dictate the circumstances under which they can be spent. The formal action that imposes the parameters for spending should identify and describe the specific circumstances under which a need for stabilization arises. These circumstances should be such that they would not be expected to occur routinely. Stabilization amounts should be reported in the general fund as restricted or committed if they meet the criteria of restricted or committed fund balance. A stabilization agreement would satisfy the criteria to be reported as a separate special revenue fund only if the resources are derived from a specific restricted or committed revenue source. The notes to the annual financial report disclose the authority for establishing the arrangement, the requirement for additions to the amount, the conditions under which amounts may be spent, and the balance.
Revision History
Revision No. Date
Approved Approved By: Comments
0 6/21/11 City Council Original Policy
1 6/19/12 City Council Revision# 1
2 8/21/13 City Council FN01-2
3 9/15/2021 City Council Revision 3/CC-07
4 TBD City Council
________________________
Bill Zimmerman, Mayor
Item Title: 12.2
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Policy CC-07, Page 1 of 10 9
4 8
7 4
2 CITY OF MENIFEE
City Council Policy
Policy Number : CC-07
Approving Authority:
City Council
Effective Date: 6/21/2011
Last Modified: 9/15/2021
Subject
Fund Balance Policy for the General Fund
1. PURPOSE
The purpose of this Policy is to establish the City's minimum levels of unrestricted fund balance to address protection from risk and unexpected situations that require financial resources. The identified fund balance levels will be maintained in various accounts to identify certain requirements for classifying fund balance in accordance with the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Definitions.
2. SCOPE/BACKGROUND
These policies/procedures apply to the General Fund of the City of Menifee as described below. The City of Menifee's primary financial objective is to maintain the fiscal stability of the organization. Fund balance is the difference between the assets and liabilities reported in a governmental fund. Unrestricted fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unrestricted fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. Having adequate financial resources will enable the City to achieve this objective and its mission of serving the citizens of Menifee.
3. POLICY
A. Governmental Fund Reserves (Fund Balance)
For Governmental Funds, the Governmental Accounting Standards Board ("GASB") Statement No. 54 defines five specific classifications of fund balance. The five classifications are intended to identify whether the specific components of fund balance are available for appropriation and are therefore "Spendable." The classifications also are intended to identify the extent to which fund balance is constrained by special restrictions, if any. Applicable only to governmental funds, the five classifications of fund balance are as follows:
CLASSIFICATION
Non-spendable
Restricted
NATURE OF RESTRICTION
Cannot be readily converted to cash
Externally imposed restrictions
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Committed
Assigned
Unassigned
City Council imposed commitment City
Manager assigned purpose/intent
Residual balance not otherwise restricted
The following components are defined by GASB statement 54 and shall be reflected in the City's Fund Balance designations:
i. Non-Spendable Fund Balance
That portion of fund balance that includes amounts that are either (a) not in a spendable form, or (b) legally or contractually required to be maintained intact. ii. Restricted Fund Balance
The portion of fund balance that reflects constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors, grantors , contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislat ion. iii. Committed Fund Balance
Limitations imposed at the highest level of decision making that requires formal action at the same level to remove (City Council).
The City Council, as the City's highest level of decision-making authority , may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitme nt. City Council action to commit fund balance needs to occur within the fiscal reporting period ; however , the amount can be determined subsequently . iv. Assigned Fund Balance
Assigned fund balance comprises amounts intended to be used by the government for specific purposes.
The City Council has authorized the City Manager or designee as the official authorized to assign fund balance to a specific purpose as approved by the fund balance policy. Such assignments cannot exceed the available (spendab le, unrestricted, uncommitted) fund balance in any particular fund.
v. Unassigned Fund Balance
That portion of a fund balance that includes amounts that do not fall into one of the above four categories . The General Fund is the only fund that will report this category of fund balance.
Item Title: 12.2
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vi. Reporting Encumbrances
Encumbering amounts in governmental funds for specific purposes for which resources have already been restricted, committed, or assigned should not result in a separate display of encumbered amounts. Encumbered amounts for specific purposes for which amounts have not been previously restricted, committed or assigned, will be classified as committed or assigned, as appropriate, based on the definitions and criteria set forth in GASB Statement No. 54.
vii. Hierarchy of Fund Balance Use
When multiple categories of fund balance are available for expenditure, the City will spend the most restricted funds first before moving down to the next category with available funds in the following order:
a. Restricted
b. Committed
c. Assigned
d. Unassigned
viii. Establishing An Operating Reserve Stabilization Fund Balance (Committed) Maintaining an Operating Reserve Stabilization Fund Balance is a necessity for sound financial management and fiscal accountability. The City Council has the authority to establish an Operating Reserve Stabilization Fund Balance that will be a Committed Fund Balance.
An Operating Reserve Stabilization Fund Balance in the General Fund is established for the purpose of providing funds for an urgent effect that affects the safety of residents, employees, or property (e.g., earthquake, wildfires, terrorist attack etc.). The minimum level for the Financial Stabilization Account is 12.515% of General Fund operating expenditures. The recognition of an urgent event must be established by the City Council by adoption of a resolution explaining the nature of the fiscal crisis and requires approval by a majority vote of the City Council in order for staff to utilize the funds set aside in the Operating Reserve Stabilization Fund Balance.
ix. Use of Operating Reserve Stabilization Fund Balance General Fund Operating Reserve Stabilization Fund Balance shall be used only to fund unanticipated needs and/or emergencies as described below:
Catastrophic Events and Major Disasters-The Financial Stabilization fund balance is to fund the extraordinary operating costs, legal costs and cash flow problems associated with delays in State and Federal reimbursements for any catastrophic event and major disaster (natural or man-made) declared by the City Council of their designee, or by the State of California, or by the federal government that are nonrecurring expenditures.
A budget revision must be approved by the City Council. A maximum of fifty percent of the prior year ending balance in the Operating Reserve Stabilization Fund may be used. At no time may the balance be less than 5 percent of the Item Title: 12.2
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adopted annual appropriations, or half of the prior year ending balance, whichever is greater.
x. Changes and Replenishment of Operating Reserve Stabilization Fund Balance The City Council may, by a majority vote of its members, change the amount of this commitment and/or the specific uses of these monies. In the event that the balance drops below the established minimum level, the City Council will develop a plan to replenish the Operating Reserve Stabilization Fund Balance to the established minimum level within three years. The progress of replenishment should be reported in the annual budget. The City will use non-recurring revenues, budget surplus, proceeds from the sale of City- owned surplus property, and any other funds identified in the budget to increase the Operating Reserve Stabilization Fund Balance.
B. MINIMUM LEVEL OF FUND BALANCE
It is the goal of the City to achieve and maintain a minimum unrestricted (committed, assigned and unassigned) fund balance in its General Fund equal to 3540% of the current year's budgeted operating expenditures. This percentage represents a balance roughly equal to four (4) months of operating expenditures. The Government Finance Officers Association (GFOA) recommends that "general-purpose governments, regardless of size, maintain unrestricted fund balance in their general fund of no less than two months (roughly 16.7%) of regular general fund operating revenues or regular general fund operating expenditures."1 The City considers a balance of less than 20% to be a cause for concern, barring unusual or deliberate circumstances. i. Committed Fund Balance for Operating Reserve Stabilization Fund The City's General fund balance committed for Operating Reserve Stabilization is established at a minimum of twelve and a half fifteen percent (12.515%) of the General Fund's current operating expenditures, to be used in a catastrophic event or major emergency.
ii. Assigned Fund Balance for Economic Uncertainty Reserve Fund The City's Assigned for Economic Uncertainty Reserve Fund Balance is established at a minimum of twelve and a halffifteen percent (12.515%) of the General Fund's current operating expenditures, to be used during times of severe economic distress such as protracted
recessionary periods, State raids on local resources, or other impactful unforeseen events which greatly diminish the financial ability of the City to deliver core services. The Assigned for Economic Uncertainty Reserve Fund Balance will be used during periods of economic distress as measured by one of the following triggers:
• Consumer Price Index exceeds the index for the previous year by more than five percent for two consecutive years.
• Local unemployment rate exceeds ten percent for three consecutive quarters. • The rate of inflation exceeds the growth in property tax revenue by five percent for two consecutive fiscal years.
1 GFOA Best Practice: Appropriate Level of Unrestricted Fund Balance in the General Fund (2002 and 2009) Item Title: 12.2
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Policy CC-07 , Page 5 of 9
• Significant State take-away of revenue totaling more than five percent of total revenue in a given fiscal year.
• Sales Tax revenue falls by ten percent of the previous quarter for at least three consecutive quarters .
• Revenue forecasts for the next fiscal year estimates revenue loss of more than seven percent.
iii. Unassigned Fund Balance
The City will achieve and maintain a minimum Unassigned Fund Balance in its General Fund of ten percent (10%) of the current year's operating expendi tures. This minimum fund balance is to protect against cash flow shortfalls related to timing of projected revenue receipts and to mainta in budgeted levels of service.
The Unassigned Fund Balance reserves may be used to provide temporary financing for unanticipated extraordinary needs, such as major storm drain repairs, or an unexpected liability created by Federal or State legislative action. If funds are appropriated (spent) from the operating reserves due to unanticipated needs, the funds should be replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance.
Authorized use of the Unassigned Fund Balance Reserves will require approval by the City Council.
iv. Replenishing Minimum Fund Balance Deficiencies
When minimum fund balance falls below the required threshold , the City Council must approve and adopt a plan to restore this balance to the target level within three years using the budget strategies described below:
• The City will use budget surplus
• The City will reduce recurring expenditures to eliminate any structural deficit or,
• The City will increase revenues or pursue other funding sources, or • A combination of the three options above
The progress of replenishment shall be reported in the annual budget. v. Deficit Fund Balance
If the fund balance is not positive at any year-end, the City shall develop a funding plan and a timeframe to bring it into a positive state.
The unassigned fund balance deficit in General Fund shall be restored through the following mechanisms , in order of priority :
• Reduction of (1) assigned fund balance levels, (2) committed fund balance levels;
• Transfer of unassigned fund balances from other related funds, if allowed. vi. Surplus Fund Balance
Unrestricted fund balance in the General Fund will be considered a surplus if over 40% Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 37
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Policy CC-07 , Page 6 of 9
of the budgeted operating expenditures. If unrestricted fund balance of the General Fund exceeds 40%, the City may consider such fund balance surpluses to be used for (a) capital projects and equipment (b) dedicated/specific restricted, assigned and/or committed fund balances defined below (bc) pay down long-term obligations, and/or (cd) one-time expenditures that are non-recurring in nature, and which do not require additional future operating expenditure outlay for maintenance, additional staffing or other recurring expenditure. Appropriation from the General Fund's unrestricted fund balance shall require the approval of the City Council.
Surplus funds are determined upon the close of the fiscal year if revenues exceed actual expenditures within the General Fund. Special consideration shall be made by the Chief Financial Officer each year when determining potential Surplus Funds so as not to leave any General Fund supported fund balances without adequate funding and accommodate future year operating expenditure growth.
Allocation and Prioritization of Surplus Fund Balance use shall be as follows:
1. Assigned Fund Balance: Self Insured Retention (SIR)
2. Assigned Fund Balance: Fleet Replacement
1.3. Assigned Fund Balance: Pension Liability
4. Assigned Fund Balance: Public Facilities
5. Committed Fund Balance: Public Facilities
6. All other eligible uses as described in the previous paragraphs. vii. Surplus Fund Balance- Self Insured Retention & Insurance Premium (Assigned)
In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement, available and identified surplus funds will be transferred by direction of the City Manager into an established Self-Insured Retention (SIR) Assigned Fund Balance account, funded with a minimum balance of $500,000. Any unused budget for insurance premiums and/or claims expenses at the end of the year will be directed towards this Assigned Fund Balance. Additionally, other expenditure savings may also be considered for deposit into this fund.
viii. Surplus Fund Balance- Fleet Replacement (Assigned) In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement and Self-Insured Retention Assigned Fund Balance account is fully funded, any available and identified surplus funds will be transferred by direction of the City Manager into an established Fleet Replacement Assigned Fund Balance account, funded at with a minimum amount of $1,000,000. ix. Surplus Fund Balance- Pension Liability (Assigned) In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement, Self-Insured Retention Assigned Fund Balance, and Fleet Replacement Assigned Fund Balance, any unused budget for pension liability expenses at the end of the year and at direction of the City Manager will be directed towards this Fund Balance Account and set aside for Pension Liability related expenses. Additionally, Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 38
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Policy CC-07 , Page 7 of 9
other expenditure savings may also be considered for deposit into this fund. The purpose of this assigned fund balance is to help offset future pension increases. x. Surplus Fund Balance- Public Facilities (Assigned) In any year where total revenues exceed total expenditures (including capital expenditures), and upon meeting the full funding of the 40% General Fund Operating Reserve Fund Requirement, Self-Insured Retention Assigned Fund Balance, Fleet Replacement Assigned Fund Balance, and Pension Liability Committed Fund Balance, identified surplus funds will be transferred by direction of the available and identified surplus funds will be transferred by direction of the City Manager to this account set aside for construction of public facilities projects. i. Surplus Fund Balance-City Hall Commitment
In any year where total revenues exceed total expenditures (including capital expenditures), and the unrestricted fund balance of the General Fund exceeds 40%, the surplus may be transferred by direction of the City Council to the Committed Fund account set aside for construction of the future City Hall. i. Surplus Fund Balance /Public Facilities (Committed) In any year where available balance exists within the Assigned Public Facilities account, and by direction of the City Council, periodic contributions will be transferred set aside for construction of public facilities projects.
4. PROCEDURES
A. A. Implementation and Review
Upon adoption of this policy the City Council authorizes the Finance Department to establish standards and procedures which may be necessary for its implementation. The City Council shall review and approve this policy via resolution at a minimum of every three (3) years to ensure it continues to meet the needs of the City given the economic factors and the current financial status at that time interval.
B. Calculation of Reserves
The reserves will be calculated using the following year’s Adopted General Fund budgeted operating expenditures.
5. RESPONSIBILITIES
A. City Council
i. Adopt fund balance policy.
B. City Manager
i. Determine appropriate levels of fund balance in accordance with adopted policy.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 39
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June 5, 2024
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Policy CC-07 , Page 8 of 9
C. City of Menifee, Finance
i. Finance Director Chief Financial Officer to assign specific amounts for financial reporting purposes.
ii. Responsible for recording amounts according to adopted policy. iii. Responsible for ensuring that fund balance is properly reported in the City's Comprehensive Annual Financial Report (CAFR).
6. DEFINITIONS
Governmental Funds:
The following definitions will be used in reporting activity in governmental funds across the City. The City may or may not report all funds types in any given reporting period , based on actual circumstances and activity . • The general fund is used to account for all financial resources not accounted for and reported in another fund.
• Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt services or capital projects. • Debt service funds are used to account for all financial resource restricted, committed or assigned to expenditure for principal and interest. • Capital project funds are used to account for all financial resources restricted, committed, or assigned to expenditures for the acquisition or construction of capital assets.
• Permanent funds are used to account for resources restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's purposes.
Fund balance classification in governmental funds:
Fund balance is defined as the excess of total assets as compared to total liabilities in a governmental fund. GASS GASB Statement No. 54 outlines the requirement to report the fund balance for governmental funds in specific classifications which create a hierarchy primarily based on the extent to which the City is bound to the constraints on the specific purposes for which funds can be spent. The Fund Balance consists of the following categories :
• Non-spendable Fund Balance : That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in a spendable form, such as prepaid items, inventories of supplies , or loans receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment.
• Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors (such as through debt covenants), granters, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. • Committed Fund Balance : That portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 40
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imposed by formal action of the government's highest level of decision- making authority and remain binding unless removed in the same manner. • Assigned Fund Balance: That portion of a fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes , but that are neither restricted nor committed . Such intent needs to be established at either the highest level of decision-mak ing, or by an official designated for that purpose.
• Unassigned Fund Balance: That portion of a fund balance that includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that will report this category of fund balance .
Stabilization Arrangement:
Per GASS GASB Statement No. 54, governments have the option to formally set aside unrestricted fund balance amounts to use for budget or revenue stabilization, working capital needs, and contingencies or emergencies. The authority to set aside such amounts can be established by statute, ordinance, resolution, or charter. These amounts are subject to controls that dictate the circumstances under which they can be spent. The formal action that imposes the parameters for spending should identify and describe the specific circumstances under which a need for stabilization arises. These circumstances should be such that they would not be expected to occur routinely. Stabilization amounts should be reported in the general fund as restricted or committed if they meet the criteria of restricted or committed fund balance. A stabilization agreement would satisfy the criteria to be reported as a separate special revenue fund only if the resources are derived from a specific restricted or committed revenue source. The notes to the annual financial report disclose the authority for establishing the arrangement, the requirement for additions to the amount, the conditions under which amounts may be spent, and the balance.
Revision History
Revision No. Date
Approved Approved By: Comments
0 6/21/11 City Council Original Policy
1 6/19/12 City Council Revision# 1
2 8/21/13 City Council FN01-2
3 9/15/2021 City Council Revision 3/CC-07
4 TBD City Council
________________________
Bill Zimmerman, Mayor
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 41
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5 RESOLUTION NO. 24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE ADOPTED ANNUAL BUDGET FOR FISCAL YEAR 2024/2025 WHEREAS, on June 21, 2023, the City of Menifee (“City”) formally adopted its first two-year (biennial) budget plan identifying the projected revenues and expenditures for the upcoming two fiscal years (Fiscal Year (“FY”) 2023/2024 and FY2024/2025); and WHEREAS, the biennial budget process incorporates two mid-year reviews at approximately six-month intervals to revisit and recalibrate the budget estimates and projections as necessary, as well as one mid-cycle review at the end of Year 1 during which the City Council of the City of Menifee (“City Council”) receives an update on revenue and expenditure assumptions, fund balances and possible recommended adjustments to the budget; and WHEREAS, incorporated as part of the biennial budget processes are various public meetings, intended to provide the public an opportunity for engagement in the budget development process, and to provide any feedback; and
WHEREAS, on May 15, 2024, the City Council reviewed the recommended FY 2024/2025 mid-cycle budget adjustments, including adjustments to the Operating Budget and Capital Improvement Program (“CIP”) for the upcoming fiscal year; overall, the FY2024/2025 mid-cycle adjustments reflect some revenue and expenditure adjustments required to meet existing commitments and/or mission critical operations/projects; and WHEREAS, the City Council has reviewed the revised budget as prepared and submitted by the City Manager of the City of Menifee (“City Manager”), and as modified by the City Council, for FY2024/2025 (“Amended Annual Budget”).
NOW, THEREFORE, the City Council of the City of Menifee, California, does hereby RESOLVE, DETERMINE and ORDER as follows:
SECTION 1: The City Council hereby approves and adopts the Amended Annual Budget as presented herewith.
SECTION 2: In connection with its approval of the Amended Annual Budget, the City Council provides the following additional authorizations, directions, and determinations:
A. The operating and capital budget amounts are hereby authorized for the 2024/2025 fiscal year by fund, as listed on Exhibit A.
B. From the effective date of the Amended Annual Budget, the total amount as stated therein for each fund shall be appropriated subject to expenditure pursuant to all applicable ordinances of the City and statutes of the State.
C. Appropriations are approved at the fund level. The City Manager, or if designated by City Manager, the Chief Financial Officer and/or the Deputy Finance Director, may transfer appropriations between departments and within their respective funds, as long those appropriations do not exceed their fund appropriation total, unless approved by Council.
D. At the close of the fiscal year, unexpended appropriations in the operating budget will be unencumbered, except as listed in sub-paragraphs E, F, and G, below.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 42
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June 5, 2024
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5 E. Unexpended appropriations for authorized, ongoing but uncompleted projects, including CIP projects, grant-funded programs/projects previously approved by the City Council may be carried forward to the next succeeding budget year upon the conclusion of the preceding fiscal year and upon approval of the City Manager. Unexpended appropriations, for authorized projects approved by City Council and not yet started, will be transferred to an assigned fund balance reserve account and held there until such time as the project is ready to move forward or the City Council takes action to reallocate the funds to another project or unassigned fund balance. Authorized, ongoing but incomplete projects, includes, in addition to those described above, the following: projects funded with restricted/specific assigned fund balance, including but not limited to, General Plan Maintenance Fee, Technology Surcharge, vehicle purchases, and/or one-time Council approved projects, including but not limited to, Strategic Plan projects/items, and City Council approved community programs.
F. Purchase orders exist as outstanding encumbrances representing contractual obligations of previously budgeted funds (“Outstanding Encumbrances”). Outstanding Encumbrances may be carried forward to the next succeeding budget upon approval by the City Manager.
G. Revenues with carry-over expenditures, such as grant, Transportation Uniform Mitigation Fee program, and/or California Environmental Quality Act developer deposits revenues not yet received, but expected to be received as expenses are realized, may carry-over to the next succeeding budget upon approval by the City Manager.
H. A summary of approved carried-over appropriations will be presented as part of the annual mid-year budget review process.
I. Unexpended appropriations in the operating budgets of the special district funds previously approved by the City Council will be analyzed and transferred to capital replacement reserves as necessary to ensure that there are sufficient funds for future capital replacement items while leaving sufficient unreserved fund balance.
J. To help mitigate current vehicle shortages and increasing prices, the City Manager may execute agreements and/or issue purchase orders for approved appropriations specific to vehicle purchases and leases, provided corresponding purchasing requirements are met.
K. A summary of approved vehicle purchases and/or leases will be presented as part of the annual mid-year budget review process and in June of each year.
L. The City Manager may establish Self-Insured Retention & Insurance Premium Assigned Fund Balance Account with a minimum amount of $500,000, Fleet Replacement Assigned Fund Balance Account with a minimum amount of $1,000,000, Public Facilities Assigned Fund Balance Account with a minimum amount of $3,700,000 with identified surplus unassigned fund balance, and Pension Liability Assigned Fund Balance Account based on identified expenditure savings identified beginning with the FY2023/2024 budget.
M. Total appropriations within any individual fund will be will be increased only by amendment of the budget by motion of the City Council.
N. The City Manager may reduce expenditure appropriations within funds as a method of fiscal control, and the Chief Financial Officer may decrease revenue estimates to reflect economic change within the fiscal period.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 43
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5 O. The Chief Financial Officer and the Deputy Finance Director are hereby authorized to transfer monies in accordance with the inter-fund transfers listed in said budget, and to transfer monies to cover operational expenditures of the City through transfers of funds in such amounts, and at such times during the fiscal year as may be determined necessary to the competent operation and control of City business, or to provide adequate cash flow, except that no such transfers shall be made in contravention of State law or City ordinances.
P. Adjustments made by the City Council during the budget hearing and documented in the minutes for this action will be incorporated with the final printed budget document. The City Manager is hereby authorized to approve any corrections in the budget document that are clerical in nature.
SECTION 3: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED this 5th day of June 2024
Bill Zimmerman, Mayor
Attest:
Stephanie Roseen, Acting City Clerk
Approved as to form:
Jeffrey T. Melching, City Attorney
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 44
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June 5, 2024
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5 Exhibit A
City of Menifee FY2024/25 Appropriations Budget Adjustments by Fund (Expenditures & Revenues)
FY2024/25 ADOPTED
BUDGET
FY2024/25 PROPOSED
ADJUSTMENTS
FY2024/25 ADJUSTED
BUDGET
Fund Fund Name Expenditure Revenue Expenditure Revenue Expenditures Revenue 100 General Fund $73,083,894 73,083,894 $1,313,071 $1,199,197 $74,396,965 $74,283,091 105
Measure DD
Transaction Tax
Fund $21,584,750 21,584,750 $641,250 $(733,750) $22,226,000 $20,851,000 110
Information
Technology $6,107,828 6,107,828 $670,000 $40,310 $6,777,828 $6,148,138 115 Fleet Services $1,993,278 1,993,278 $(175,000) $(166,555) $1,818,278 $1,826,723 116
Facility Maintenance
Services $1,207,578 1,207,579 $0 $4,647 $1,207,578 $1,212,226 200 Gas Tax $3,251,556 3,193,556 $0 $(148,346) $3,251,556 $3,045,210 201
SB 1 Road
Maintenance Rehab
Fund $2,774,000 2,767,637 $0 $69,023 $2,774,000 $2,836,660 220 Measure A $3,179,249 3,179,400 $0 $(11,005) $3,179,249 $3,168,395 240 SLESF $150,000 150,000 $0 $0 $150,000 $150,000 280 AQMD $0 120,000 $35,000 $1,162 $35,000 $121,162 301 Grant Fund $0 $0 $595,472 $633,759 $595,472 $633,759 310 TUMF Fees Fund $0 $0 $0 $0 $0 $0
320 Capital Projects $258,679 258,679 $0 $52,533 $258,679 $311,212 340
Public, Education
and Governmental
Access (PEG) $0 140,000 $42,250 $2,334 $42,250 $142,334 350 Trust fund $0 $0
$0
$0 $0 $0
370
L&LMD 89-1 C Zone
3 $338,319 284,052 $14,087 $(5,570) $352,406 $278,482 371
L&LMD 89-1 C Zone
25 $0 $0 $0 $10,508 $0 $10,508
372
L&LMD 89-1 C Zone
27 $10,072 16,097 $5,168 $1,231 $15,240 $17,328
373
L&LMD 89-1 C Zone
37 $44,164 44,116 $515 $871 $44,679 $44,987
374
L&LMD 89-1 C Zone
38 $54,281 49,527 $25,401 $3,842 $79,682 $53,369
375
L&LMD 89-1 C Zone
44 $84,453 87,051 $(52,942) $(2,332) $31,511 $84,719 376
L&LMD 89-1 C Zone
47 $11,067 11,849 $138 $1,108 $11,205 $12,957
377
L&LMD 89-1 C Zone
49 $1,927 1,927 $494 $(16) $2,421 $1,911
378
L&LMD 89-1 C Zone
60 $0 $0 $0 $997 $0 $997
379
L&LMD 89-1 C Zone
63 $12,818 12,818 $(2,743) $1,156 $10,075 $13,974
380
L&LMD 89-1 C Zone
69 $63,085 63,224 $(1,242) $2,264 $61,843 $65,488
382
L&LMD 89-1 C Zone
77 $34,422 23,499 $18,774 $9,790 $53,196 $33,289
383
L&LMD 89-1 C Zone
81 $49,703 49,471 $4,078 $5,122 $53,781 $54,593
384
L&LMD 89-1 C Zone
113 $2,900 7,412 $79 $353 $2,979 $7,765
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 45
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June 5, 2024
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5 FY2024/25 ADOPTED
BUDGET
FY2024/25 PROPOSED
ADJUSTMENTS
FY2024/25 ADJUSTED
BUDGET
Fund Fund Name Expenditure Revenue Expenditure Revenue Expenditures Revenue 385
L&LMD 89-1 C Zone
114 $3,830 5,753 $68 $127 $3,898 $5,880
386
L&LMD 89-1 C Zone
117 $12,544 12,143 $893 $851 $13,437 $12,994
387
L&LMD 89-1 C Zone
118 $5,942 5,942 $63 $294 $6,005 $6,236
388
L&LMD 89-1 C Zone
121 $5,282 5,282 $58 $429 $5,340 $5,711
389
L&LMD 89-1 C Zone
129 $3,862 3,862 $(796) $301 $3,066 $4,163
390
L&LMD 89-1 C Zone
130 $17,027 17,027 $183 $435 $17,210 $17,462
391
L&LMD 89-1 C Zone
133 $133,258 129,002 $30,946 $9,925 $164,204 $138,927 392
L&LMD 89-1 C Zone
163 $905 908 $10 $70 $915 $978
393
L&LMD 89-1 C Zone
167 $26,671 29,582 $325 $1,411 $26,996 $30,993
394
L&LMD 89-1 C Zone
176 $5,306 6,600 $7 $79 $5,313 $6,679
395
L&LMD 89-1 C Zone
Group 4 $19,045 19,045 $276 $1,732 $19,321 $20,777
410 Scott Road-RBBD $0 395,795 $1,000,000 $11,096 $1,000,000 $406,891 415
Menifee Valley-
RBBD $600,000 1,440,662 $0 $(9,260) $600,000 $1,431,402 420 CSA 33 $6,500 6,500 $4,337 $280 $10,837 $6,780
430 CSA 43 $8,438 5,081 $14,701 $1,315 $23,139 $6,396 440 CSA 80 $0 $0 $0 $0 $0 $0
450 CSA 84 $540,368 540,368 $67,511 $6,044 $607,879 $546,412 460 CSA 86 $1,218,232 318,232 $2,651 $4,188 $1,220,883 $322,420 470 CSA 138 $6,689 6,689 $926 $0 $7,615 $6,689
480 CSA 145 $1,032,706 1,032,706 $55,532 $9,457 $1,088,238 $1,042,163 481 CDBG Grant $527,847 527,847 $0 $35,402 $527,847 $563,249 490
Audie Murphy
Ranch CFD $1,865,278 2,397,418 $90,251 $91,144 $1,955,529 $2,488,562 491 Hidden Hills CFD $284,032 292,907 $14,922 $15,896 $298,954 $308,803 492
2014-1 Town Center
CFD $17,031 17,460 $8,790 $2,406 $25,821 $19,866
493
2014-2 Commerce
Point CFD $17,626 29,630 $1,591 $1,040 $19,217 $30,670 494
CFD 2017-1
Maintenance
Services $237,272 243,222 $747 $(6,255) $238,019 $236,967 500
DIF 16 - Public
Facilities $0 $0 $0 $1,166 $0 $1,166
501 DIF 16 - Fire $0 $0 $0 $649 $0 $649
502 DIF 16 – Signals $0 $0 $0 $872 $0 $872 503 DIF 16 - Parks $0 $0 $0 $243 $0 $243
504 DIF 16 - Trails $0 $0 $0 $63 $0 $63
505 DIF 16 - Library $0 $0 $0 $44 $0 $44
506
DIF 16 -
Administration $0 $0 $27 $0 $27
507
DIF 17 - Public
Facilities $0 $0 $0 $4,516 $0 $4,516
508 DIF 17 - Fire $108,548 $0 $150,000 $3,471 $258,548 $3,471 509 DIF 17 - Roads $0 $0 $0 $25,666 $0 $25,666 510 DIF 17 - Signals $0 $0 $0 $1,422 $0 $1,422 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 46
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June 5, 2024
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5 FY2024/25 ADOPTED
BUDGET
FY2024/25 PROPOSED
ADJUSTMENTS
FY2024/25 ADJUSTED
BUDGET
Fund Fund Name Expenditure Revenue Expenditure Revenue Expenditures Revenue 511 Dif 17 - Parks $0 $0 $0 $2,244 $0 $2,244 512 DIF 17 - Trails $6,800 $0 $0 $2,190 $6,800 $2,190 513 DIF 17 - Library $50,000 $0 $0 $14,460 $50,000 $14,460 514 DIF 17 - Admin $0 $0 $0 $5,518 $0 $5,518 516 Paloma Wash $0 $0 $0 $34 $0 $34
517
DIF Citywide - Parks
& Rec $0 $0 $0 $560,675 $0 $560,675
518
DIF Citywide -
Transportation
Impact Fee $0 $0 $0 $3,378,476 $0 $3,378,476 519
DIF Citywide - A_A
Storm Drain $0 $0 $0 $13,593 $0 $13,593
520
DIF Citywide - Public
Use & Community
Fa $0 102,775 $200,000 $(102,775) $200,000 $0
521
DIF Citywide - Fire
Facilities $0 433,588 $125,000 $(2,852) $125,000 $430,736 522
DIF Citywide - Park
Improvements $541,735 456,266 $0 $(452,268) $541,735 $3,998 523
DIF Citywide -
Library $0 47,001 $0 $1,524 $0 $48,525
524
DIF Citywide -
General Govt
(Fac,Veh,Equ $233,333 704,444 $(50,000) $9,463 $183,333 $713,907 525
DIF Citywide - Law
Enforcement $0 155,198 $218,528 $1,632 $218,528 $156,830 526
DIF Citywide -
Circulation $3,581,890 3,370,746 $0 $(3,355,054) $3,581,890 $15,692 527
DIF Citywide - Storm
Drain Facilities $142,960 189,106 $0 $(188,834) $142,960 $272 528
DIF Citywide -
Animal Shelter $204,930 108,433 $0 $496 $204,930 $108,929 529
DIF Citywide - Land
Acquisition $0 1,166 $0 $0 $0 $1,166
530
DIF Citywide -
Master Plan &
Nexus Analy $0 16,401 $0 $328 $0 $16,729
531
DIF Citywide - A_B
Storm Drain $0 $0 $0 $520 $0 $520
532
DIF Citywide - A_C
Storm Drain $0 $0 $0 $284,028 $0 $284,028
533
DIF Citywide - B_A
Storm Drain $0 $0 $0 $34,297 $0 $34,297
534
DIF Citywide - B_B
Storm Drain $0 $0 $0 $915 $0 $915
535
DIF Citywide - F_A
Storm Drain $0 $0 $0 $599 $0 $599
590 TRIP Debt Service $1,759,325 1,759,325 $0 $10,870 $1,759,325 $1,770,195 600 Veteran's Memorial $0 $0
$0
$0 $0 $0
620 Local Park $601,465 280,864 $0 $20,129 $601,465 $300,993 621
2015-2 Citywide
Graffiti $9,016 9,016 $0 $0 $9,016 $9,016
622
2015-2 Citywide
Parks $268,700 268,700 $0 $1,111 $268,700 $269,811 623
2015-2 Citywide
Trails $7,750 7,750 $0 $0 $7,750 $7,750
630
2015-2 Original
Zone #1 $413,823 395,631 $952 $14,960 $414,775 $410,591 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 47
Menifee Mayor and City Council
June 5, 2024
Page
1054 of 1108
8 4
8 7
3 5
4 8
7 3
5 FY2024/25 ADOPTED
BUDGET
FY2024/25 PROPOSED
ADJUSTMENTS
FY2024/25 ADJUSTED
BUDGET
Fund Fund Name Expenditure Revenue Expenditure Revenue Expenditures Revenue 632
2015-2 Annexation
#2 Zone #3 $5,204 5,335 $2,842 $118 $8,046 $5,453
633
2015-2 Annexation
#3 Zone #4 $400 410 $142 $9 $542 $419
634
2015-2 Annexation
#4 Zone #5 $5,977 6,129 $19 $134 $5,996 $6,263
636
2015-2 Annexation
#6 Zone #7 $136,627 140,057 $(2,412) $4,218 $134,215 $144,275 637
2015-2 Annexation
#7 Zone #8 $26,816 27,489 $80 $747 $26,896 $28,236
638
2015-2 Annexation
#8 Zone #9 $17,574 18,016 $111 $538 $17,685 $18,554
639
2015-2 Annexation
#9 Zone #10 $5,844 5,991 $666 $180 $6,510 $6,171
640
2015-2 Annexation
#10 Zone #11 $1,516 1,553 $5 $35 $1,521 $1,588
641
2015-2 Annexation
#11 Zone #12 $134,854 178,124 $(10,634) $8,672 $124,220 $186,796 642
2015-2 Annexation
#12 Zone #13 $58,036 59,492 $173 $3,408 $58,209 $62,900 643
2015-2 Annexation
#13 Zone #14 $12,080 12,382 $36 $714 $12,116 $13,096 644
2015-2 Annexation
#14 Zone #15 $4,471 4,582 $20 $103 $4,491 $4,685
646
2015-2 Annexation
#16 Zone #17 $7,129 7,307 $2,622 $162 $9,751 $7,469
647
2015-2 Annexation
#17 Zone #18 $39,511 40,502 $114 $1,801 $39,625 $42,303 648
2015-2 Annexation
#18 Zone #19 $23,933 17,779 $8,561 $488 $32,494 $18,267 649
2015-2 Annexation
#19 Zone #20 $370,688 385,679 $65 $210,751 $370,753 $596,430 651
2015-2 Annexation
#20 Zone #21 $25,192 25,823 $6,853 $689 $32,045 $26,512 652
2015-2 Annexation
#21, Zone #22 $6,364 6,522 $19 $146 $6,383 $6,668
653
2015-2 Annexation
#22, Zone #23 $8,731 8,949 $6,826 $199 $15,557 $9,148 654
2015-2 Annexation
#23, Zone #24 $17,447 17,884 $84 $514 $17,531 $18,398 655
2015-2 Annexation
#24, Zone #25 $6,245 6,401 $19 $142 $6,264 $6,543
656
2015-2 Annexation
#25, Zone #26 $5,600 5,600 ($5,499) ($5,600) $101 $0 657
2015-2 Annexation
#27, Zone #27 $1,350 1,350 $2,551 $14,385 $3,901 $15,735 658
2015-2 Annexation
#28, Zone #28 $28,509 29,224 $5,715 $693 $34,224 $29,917 659
2015-2 Annexation
#29, Zone #29 $168,501 223,513 $85,715 $44,705 $254,216 $268,218 660
2015-2 Annexation
#30, Zone #30 $5,092 5,218 $9 $117 $5,101 $5,335
662
2015-2 Annexation
#32, Zone #32 $0 $0 $6,306 $9,909 $6,306 $9,909 663
2015-2 Annexation
#33, Zone #33 $8,604 8,818 $278 $197 $8,882 $9,015
664
2015-2 Annexation
#34, Zone #34 $1,844 1,890 $1,620 $42 $3,464 $1,932
665
2015-2 Annexation
#35, Zone #35 $457 27,599 $22,990 $(3,552) $23,447 $24,047 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 48
Menifee Mayor and City Council
June 5, 2024
Page
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9 4
8 7
3 5
4 8
7 3
5 FY2024/25 ADOPTED
BUDGET
FY2024/25 PROPOSED
ADJUSTMENTS
FY2024/25 ADJUSTED
BUDGET
Fund Fund Name Expenditure Revenue Expenditure Revenue Expenditures Revenue 666
2015-2 Annexation
#36, Zone #36 $4,200 4,305 $57 $96 $4,257 $4,401
672
2017-1 Annexation
#1, Zone #2 $40,466 41,482 $141 $914 $40,607 $42,396 673
2017-1 Annexation
#2, Zone #3 $99,202 124,378 $(65) $8,416 $99,137 $132,794 674
2017-1 Annexation
#4, Zone #4 $245,736 267,705 $2,648 $8,616 $248,384 $276,321 675
2017-1 Annexation
#5, Zone #5 $48,601 77,411 $(359) $2,048 $48,242 $79,459 676
2017-1 Annexation
#6, Zone #6 $44,005 120,304 $52,082 $40,591 $96,087 $160,895 678
2017-1 Annexation
#8, Zone #8 $181,334 202,496 $894 $5,659 $182,228 $208,155 679
2017-1 Annexation
#9, Zone #9 $139,236 143,556 $282 $3,870 $139,518 $147,426 680
2017-1 Annexation
#10, Zone #10 $600 600 $0 $(600) $600 $0
681
2017-1 Annexation
#11, Zone #11 $3,600 3,600 $0 $(3,600) $3,600 $0
682
2017-1 Annexation
#12, Zone #12 $6,600 6,600 $0 $(6,600) $6,600 $0
683
2017-1 Annexation
#13, Zone #13 $1,350 1,350 $0 $(1,350) $1,350 $0
684
2017-1 Annexation
#14, Zone #14 $2,600 2,600 $271 $54,985 $2,871 $57,585 685
2017-1 Annexation
#15, Zone #15 $850 850 $0 $35,516 $850 $36,366
686
2017-1 Annexation
#16, Zone #16 $750 750 $0 $37,104 $750 $37,854
687
2017-1 Annexation
#17, Zone #17 $600 600 $0 $3,859 $600 $4,459
688
2017-1 Annexation
#18, Zone #18 $3,670 4,893 $387 $109,016 $4,057 $113,909 689
2017-1 Annexation
#19, Zone #19 $500 500 $1,500 $2,498 $2,000 $2,998
692 2017-1, Zone 22A $0 $0 $0 $233,224 $0 $233,224 693 2017-1, Zone 22B $0 $0 $0 $80,640 $0 $80,640 694 2017-1, Zone 22C $0 $0 $5,499 $5,499 $5,499 $5,499 720
CFD 2019-1
Meadow Run Capital
Projects
$0
$0 $0
$0
$0
$0
721
CFD 2020-1 McCall
Mesa Capital
Projects
$0
$0 $0
$0
$0
$0
723
CFD 2021-1 Banner
Park Capital
Projects
$0
$0 $0
$0 $0 $0
724
CFD 2021-2 Sumac
Ridge Capital
Projects $0 $0 $0 $0 $0 $0
725
CFD 2022-1 Quartz
Ranch Capital
Projects $0 $0 $0 $0 $0 $0
750
CFD 2019-1
Meadow Run
Custodial Fund $157,653 $163,248 $(13,366) $0 $144,287 $163,248 751
CFD 2020-1 McCall
Mesa Custodial
Fund $761,501 $817,362 $(48,717) $0 $712,784 $817,362 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 49
Menifee Mayor and City Council
June 5, 2024
Page
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1 0
4 8
7 3
5 4
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3 5
FY2024/25 ADOPTED
BUDGET
FY2024/25 PROPOSED
ADJUSTMENTS
FY2024/25 ADJUSTED
BUDGET
Fund Fund Name Expenditure Revenue Expenditure Revenue Expenditures Revenue 752
2020-2 Del Oro
Custodial Fund $169,283 $191,370 $(21,071) $0 $148,212 $191,370 753
CFD 2021-1 Banner
Park Custodial Fund $328,483 $731,437 $(17,044) $945 $311,439 $732,382 754
CFD 2021-2 Sumac
Ridge Custodial
Fund $10,131 $475,047 $503,312 $142,692 $513,443 $617,739 755
CFD 2021-2 Quartz
Ranch Custodial
Fund $10,275 $700,640 $596,578 $417,018 $606,853 $1,117,658 756
CFD 2021-2
McLaughlin
Custodial Fund $5,050 $5,100 $276 $143,337 $5,326 $148,437 757
CFD 2021-2 Legado
IA 1 Custodial Fund $2,550 $2,550 $276 $2,450 $2,826 $5,000 758
CFD 2021-2 Legado
IA 2 Custodial Fund $2,550 $2,550 $0 $2,450 $2,550 $5,000 759
CFD 2021-2
Rockport Custodial
Fund $5,192 $29,677 $552 $552,927 $5,744 $582,604
760
CFD 2021-2
Cimarron Ridge IA 1
Custodial Fund $2,642 $36,134 $3,041 $251,268 $5,683 $287,402 761
CFD 2021-2
Cimarron Ridge IA 2
Custodial Fund $2,550 $2,550 $2,500 $7,886 $5,050 $10,436 Grand Total $132,240,345 $135,674,980 $6,277,892 $3,881,496 $138,518,237 $139,556,476 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 50
Menifee Mayor and City Council
June 5, 2024
Page
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6 RESOLUTION NO. 24-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE,
CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024/2025 IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE I OF THE CALIFORNIA GOVERNMENT CODE.
WHEREAS, Article XIII B of the Constitution of the State of California as proposed by the Initiative Measure approved by the people at the special statewide election held on November 6, 1979, provides that the total annual appropriations limit of such entity for the prior year adjusted for changes in the cost of living and population except as otherwise specifically provided for in said Articles; and WHEREAS, the State Legislature added Division 9 (commencing with Section 7900) to Title I of the Government Code of the State of California to implement Article XIII B of the California Constitution; and
WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIII B at a regularly scheduled meeting or a noticed special meeting and that fifteen days prior to such meeting, documentation used in the determination of the appropriations limit shall be available to the public; and
WHEREAS, Section 7902(a) of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction; and
WHEREAS, the City Council of the City of Menifee wishes to establish the Appropriation’s limit for Fiscal Year 2024/2025 for the City of Menifee, California.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Menifee, California, as follows:
SECTION 1: That it is hereby found and determined that the documentation used in the determination of the appropriations limit for the City of Menifee for Fiscal Year 2024/2025 was available to the public in the Finance Department of said City at least fifteen days prior to this date, as listed on Exhibit A.
SECTION 2: That the appropriations limit for the City of Menifee was established in accordance with Section 7902(a) of the California Government Code and is $64,469,288.
SECTION 3: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 51
Menifee Mayor and City Council
June 5, 2024
Page
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7 3
6 PASSED AND ADOPTED ON THIS 5th DAY OF JUNE 2024.
Bill Zimmerman, Mayor
Attest:
Stephanie Roseen, Acting City Clerk
Approved as to form:
Jeffrey T. Melching, City Attorney
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 52
Menifee Mayor and City Council
June 5, 2024
Page
1059 of 1108
4 8
7 3
7 Exhibit "A"
City of Menifee
2024/25 Appropriations Computation
The appropriations limitation imposed by the state, otherwise known as the Gann Limit, creates a restriction on the amount of revenue that can be appropriated (revenue that can be legally spent) in any fiscal year. The basis for calculating the limit began in fiscal year 1978/79 and is increased based on population growth and inflation.
Menifee’s Gann Limit Calculation began the first full year of operation (FY2009/10). The appropriation limit applies only to those revenues defined as proceeds of taxes.
POPULATION GROWTH FACTORS:
1. Population growth of Menifee, OR
2. Population growth within Riverside County,
AND
INFLATION GROWTH FACTORS:
3. Growth in California per capita income, OR
4. Growth in non-residential assessed valuation due to new construction in the city.
The factors used to calculate the fiscal year 2023/24 Limit were:
1.Population growth of Menifee.
AND
3.Growth in California per capita income.
Using the prior year’s Appropriation Limit, the formula used to calculate the Gann Limit is outlined below:
Fiscal Year 2023/24 Expenditure Limit: $61,365,981 (Set at June 21, 2023 City Council Meeting)
1. % Population growth within Menifee = 1.39%
(Based on 2023 Population of 110,034 per State of California Department of Finance Fiscal Year 2023/24 Annual Percent Change in Population Minus Exclusions* and 2024 Population of 110,034 per State of California Department of Finance Fiscal Year 2023-24 Annual Percent Change in Population Minus Exclusions*, See Attachment 1)
3. Growth in California per capita income = 1.0362 Net Increase Factor (See Attachment 1) Combined Adjustment Factor of 1.051 = (1.039 x 1.0362)
Fiscal Year 2024/25 Appropriation Limit = Combined Adjustment Factor, 1.051 * 2023/24 Limit, $61,365,981 = $64,469,288
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 53
Menifee Mayor and City Council
June 5, 2024
Page
1060 of 1108
4 8
7 3
7 Attachment 1
Gann Limit History (City of Menifee)
Fiscal Year Appropriation Limit
FY 09/10 $26,049,674
FY 10/11 $25,794,220
FY 11/12 $27,187,310
FY 12/13 $28,728,556
FY 13/14 $30,745,565
FY 14/15 $31,197,525
FY 15/16 $33,047,538
FY 16/17 $35,509,580
FY 17/18 $37,707,623
FY 18/19 $40,117,140
FY 19/20 $42,889,234
FY 20/21 $45,595,545
FY 21/22 $49,493,964
FY 22/23 $56,937,856
FY 23/24 $61,365,981
FY 24/25 $64,469,288
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 54
Menifee Mayor and City Council
June 5, 2024
Page
1061 of 1108
RESOLUTION NO. 24-___
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 2024/2025.
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 2024/2025 fiscal year budget; 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 effective July 1, 2024, 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; provided, however, that the employee positions listed in Resolution 21-1099 are exempt from the City’s Personnel Rules and Regulations (except for the City’s EEO policy at rule I.C., Complaint Procedure at Rule VI.F., and Reasonable Accommodation Policy at rule VI.G), and such positions may be recruited and filled in the discretion of the City Manager; 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 modify the organizational structure of the City, modify employee and department responsibilities, and establish, fix and alter job classifications including 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 July 1, 2024 as presented herewith.
SECTION 2: That the authorizations, delegations of authority, and directives provided in the recitals to this Resolution are hereby incorporated by reference and made a part of the City Council’s determination and order hereunder.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 55
Menifee Mayor and City Council
June 5, 2024
Page
1062 of 1108
Classification and Compensation Resolution for FY2024-25 4 8
7 3
8 4
8 7
3 8
SECTION 3: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED this 5th DAY OF JUNE 2024.
Bill Zimmerman, Mayor
Attest:
Stephanie Roseen, Acting City Clerk
Approved as to form:
Jeffrey T. Melching, City Attorney
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 56
Menifee Mayor and City Council
June 5, 2024
Page
1063 of 1108
Effective 06/05/2024
Department Title Classification Group FTE Step From Step To Council Council Member1
Elec Elected n/a n/a 22,800.00$
Council Council Member1
Elec Elected n/a n/a 22,800.00$
Council Council Member1
Elec Elected n/a n/a 22,800.00$
Council Council Member1
Elec Elected n/a n/a 22,800.00$
Council Mayor1
Elec Elected n/a n/a 24,000.00$
City Executive Office City Manager Contract 1.0 n/a - n/a 295,201$ City Executive Office Assistant City Manager Contract 1.0 625 198,665$ 675 254,932$ City Executive Office Deputy City Manager Contract 1.0 615 189,000$ 665 242,529$ City Executive Office Assistant to the City Manager Conf 1.0 525 120,647$ 575 154,817$ City Executive Office Management Analyst Conf 1.0 443 80,149$ 493 102,849$ City Executive Office Executive Assistant Conf 1.0 387 60,618$ 437 77,786$
Communications Public Information & Legislative Affairs Officer Conf 1.0 535 126,817$ 585 162,734$ Communications Media & Production Coordinator Gen 1.0 432 75,870$ 482 97,359$ Communications Public Information Specialist Gen 1.0 405 66,311$ 455 85,093$ Communications Media Specialist Gen 1.0 405 66,311$ 455 85,093$
City Clerk City Clerk Contract 1.0 579 157,937$ 629 202,668$ City Clerk Assistant City Clerk Prof 1.0 462 88,116$ 512 113,072$ City Clerk Management Analyst Prof 1.0 443 80,149$ 493 102,849$ City Clerk Administrative Assistant Gen 1.0 367 54,863$ 417 70,401$ City Clerk Records Technician Gen 1.0 347 49,654$ 397 63,718$ City Clerk Receptionist Gen 1.0 284 36,266$ 334 46,537$
Code Enforcement Code Enforcement Supervisor Prof 1.0 449 82,584$ 499 105,974$ Code Enforcement Senior Code Enforcement Officer Gen 2.0 430 75,117$ 480 96,392$ Code Enforcement Code Enforcement Officer II Gen 2.0 409 67,648$ 459 86,807$ Code Enforcement Code Enforcement Officer I Gen 1.0 387 60,618$ 437 77,786$ Code Enforcement Code Enforcement Technician Gen 1.0 367 54,863$ 417 70,401$ Code Enforcement Office Specialist II Gen 1.0 318 42,968$ 368 55,137$
CD: Planning Community Development Director Contract 1.0 605 179,805$ 655 230,730$ CD: Planning Deputy Community Development Director Contract 1.0 564 146,552$ 614 188,059$ CD: Planning Principal Planner Mid 2.0 516 115,351$ 566 148,021$ CD: Planning Senior Planner Prof 2.0 481 96,874$ 531 124,312$ CD: Planning Senior Management Analyst Prof 1.0 481 96,874$ 531 124,312$ CD: Planning Associate Planner Gen 3.0 449 82,584$ 499 105,974$ CD: Planning Management Analyst II Prof 1.0 462 88,116$ 512 113,072$ CD: Planning Management Aide (Part-Time)(Limited Term) PT 0.5 405 66,311$ 455 85,093$ CD: Planning Assistant Planner Gen 2.0 430 75,117$ 480 96,392$ CD: Planning Planning Technician Gen 1.0 395 63,085$ 445 80,953$ CD: Planning Administrative Assistant Gen 1.0 367 54,863$ 417 70,401$
CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2024-2025
Annual Salary Ranges2
FY24/25 Mid-Cycle
Reclassification Request
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 57
Menifee Mayor and City Council
June 5, 2024
Page
1064 of 1108
Effective 06/05/2024
Department Title Classification Group FTE Step From Step To
CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2024-2025
Annual Salary Ranges2
FY24/25 Mid-Cycle
Reclassification Request
CD: Building and Safety Building Official Mid 1.0 547 134,638$ 597 172,772$ CD: Building and Safety Building/Safety Manager Mid 1.0 525 120,647$ 575 154,817$ CD: Building and Safety Plans Examiner II Gen 2.0 453 84,248$ 503 108,109$ CD: Building and Safety Senior Building Inspector Gen 1.0 443 80,149$ 493 102,849$ CD: Building and Safety Management Analyst Prof 1.0 443 80,149$ 493 102,849$ CD: Building and Safety Permit Center Coordinator Prof 1.0 432 75,870$ 482 97,359$ CD: Building and Safety Building Inspector II Gen 1.0 432 75,870$ 482 97,359$ CD: Building and Safety Building Inspector Gen 3.0 420 71,463$ 470 91,703$ CD: Building and Safety Building Permit Technician Gen 3.0 395 63,085$ 445 80,953$ CD: Building and Safety Office Specialist II Gen 1.0 318 42,968$ 368 55,137$
Community Services Community Services Director Contract - 605 179,805$ 655 230,730$ Community Services Park/Landscape Maintenance Manager Mid 1.0 525 120,647$ 575 154,817$ Community Services Community Services Manager Mid 1.0 525 120,647$ 575 154,817$ Community Services Sr. Management Analyst Prof 1.0 481 96,874$ 531 124,312$ Community Services Community Services Supervisor Prof 1.0 449 82,584$ 499 105,974$ Community Services Management Analyst II Prof 1.0 462 88,116$ 512 113,072$ Community Services Management Analyst I Prof - 443 80,149$ 493 102,849$ Community Services Field Supervisor (Parks/Landscape) Prof 1.0 420 71,463$ 470 91,703$ Community Services Field Supervisor (Facilities) Prof 1.0 420 71,463$ 470 91,703$ Community Services Community Services Coordinator Gen 4.0 383 59,420$ 433 76,250$ Community Services Park Ranger Gen 2.0 383 59,420$ 433 76,250$ Community Services Sr. Park Maintenance Worker Gen 2.0 377 57,668$ 427 74,002$ Community Services Sr. Facility Maintenance Worker Gen 1.0 377 57,668$ 427 74,002$ Community Services Administrative Assistant Gen 1.0 367 54,863$ 417 70,401$ Community Services Park Maintenance Worker II Gen 7.0 360 52,980$ 410 67,986$ Community Services Facilities Maintenance Worker II Gen 1.0 360 52,980$ 410 67,986$ Community Services Office Aide (Part-Time) PT 0.5 269 30,206$ 319 46,850$ Community Services Community Services Specialist (Part-Time) PT 2.25 326 44,717$ 376 46,850$ Community Services Part Time Pool Manager (Full Time Equivalents) PT 0.40 N/A 39,956$ N/A 46,403$ Community Services Part Time Lifeguard (Full Time Equivalents) PT 1.38 N/A 35,090$ N/A 40,747$ Community Services Part Time Water Safety Instructors (Full Time Equivalents) PT 2.60 N/A 37,440$ N/A 43,576$ Community Services Part Time Leader, Instructor, Maint. (Full Time Equivalents) PT 22.84 N/A 32,242$ N/A 46,403$
Economic Development Economic Development Director Contract - 595 171,057$ 645 219,504$ Economic Development Economic Development Manager Mid 1.0 525 120,647$ 575 154,817$ Economic Development Sr. Management Analyst Prof 1.0 481 96,874$ 531 124,312$ Economic Development Management Aide Gen 2.0 405 66,311$ 455 85,093$ Economic Development Office Specialist II Gen 1.0 318 42,968$ 368 55,137$
Finance Chief Financial Officer Contract 1.0 605 179,805$ 655 230,730$ Finance ERP Project Administrative Svs. Director (Limited Term) Contract - n/a - n/a 221,874$ Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 58
Menifee Mayor and City Council
June 5, 2024
Page
1065 of 1108
Effective 06/05/2024
Department Title Classification Group FTE Step From Step To
CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2024-2025
Annual Salary Ranges2
FY24/25 Mid-Cycle
Reclassification Request
Finance Deputy Finance Director Contract 1.0 564 146,552$ 614 188,059$ Finance Finance Manager Mid/Conf 2.0 534 126,186$ 584 161,925$ Finance Principal Accountant Mid 1.0 516 115,351$ 566 148,021$ Finance Financial Analyst Prof 1.0 481 96,874$ 531 124,312$ Finance Senior Accountant Prof 1.0 481 96,874$ 531 124,312$ Finance Senior Accountant (Budget & Grants) Prof 1.0 481 96,874$ 531 124,312$ Finance Accountant I Prof 1.0 443 80,149$ 493 102,849$ Finance Contract/Purchasing Specialist Gen 1.0 405 66,311$ 455 85,093$ Finance Senior Accounting Technician Gen 2.0 396 63,401$ 446 81,357$ Finance Accounting Technician II Gen 2.0 377 57,668$ 427 74,002$ Finance Contract/Purchasing Technician II Gen 1.0 377 57,668$ 427 74,002$ Finance Administrative Assistant Gen 1.0 367 54,863$ 417 70,401$ Finance Contract/Purchasing Technician I Gen 1.0 354 51,418$ 404 65,982$ Finance Accounting Technician I (Business License) Gen 1.0 354 51,418$ 404 65,982$ Finance Accounting Technician I Gen 2.0 354 51,418$ 404 65,982$ Finance Accounting Assistant Gen - 330 45,618$ 380 58,538$ Finance Cashier Gen 1.0 318 42,968$ 368 55,137$
Human Resources Human Resources Director Contract 1.0 605 179,805$ 655 230,730$ Human Resources Deputy Human Resources Director Contract - 564 146,552$ 614 188,059$ Human Resources Human Resources Manager Conf 1.0 534 126,186$ 584 161,925$ Human Resources Human Resources Analyst Conf 2.0 462 88,116$ 512 113,072$ Human Resources Human Resources Analyst (Risk/Emergency Mgmt.) Conf 1.0 462 88,116$ 512 113,072$ Human Resources Human Resources Technician (Risk/Emergency Mgmt.) Conf 1.0 377 57,668$ 427 74,002$ Human Resources Human Resources Technician Conf 2.0 377 57,668$ 427 74,002$ Human Resources Human Resources Assistant Conf 1.0 340 47,951$ 390 61,531$
Information Technology Chief Information Officer Contract 1.0 605 179,805$ 655 230,730$ Information Technology Information Technology Manager Conf 1.0 525 120,647$ 575 154,817$ Information Technology Information Technology Manager (Cybersecurity) Conf 1.0 525 120,647$ 575 154,817$ Information Technology Geographic Information System Coordinator Conf 1.0 481 96,874$ 531 124,312$ Information Technology Audio Visual (AV) System Coordinator Conf 1.0 481 96,874$ 531 124,312$ Information Technology Information Technology Analyst Conf 3.0 462 88,116$ 512 113,072$ Information Technology Management Analyst II Gen 1.0 462 88,116$ 512 113,072$ Information Technology Information Technology Technician Conf 3.0 396 63,401$ 446 81,357$ Information Technology Geographic Information System Technician Conf 2.0 396 63,401$ 446 81,357$ Information Technology Audio Visual (AV) System Technician Conf 1.0 396 63,401$ 446 81,357$ Fire Fire Permit Technician Gen 1.0 395 63,085$ 445 80,953$ Fire Office Specialist II Gen - 318 42,968$ 368 55,137$ Police Chief of Police Contract 1.0 PC625 200,651$ PC675 257,481$ Police Police Captain PMA 2.0 P587 158,089$ P637 202,864$ Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 59
Menifee Mayor and City Council
June 5, 2024
Page
1066 of 1108
Effective 06/05/2024
Department Title Classification Group FTE Step From Step To
CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2024-2025
Annual Salary Ranges2
FY24/25 Mid-Cycle
Reclassification Request
Police Police Lieutenant PMA 5.0 P557 136,119$ P607 174,672$ Police Police Support Services Manager Mid 1.0 525 120,647$ 575 154,817$ Police Police Sergeant PMA 11.0 P518 112,058$ P568 143,796$ Police Budget and Grants Analyst Prof 1.0 481 96,874$ 531 124,312$ Police Senior Police Personnel & Training Analyst Conf 1.0 481 96,874$ 531 124,312$ Police Crime Analyst Prof 1.0 462 88,116$ 512 113,072$ Police Police Officer POA 74.0 P467 86,891$ P517 111,500$ Police Police Records Supervisor Prof 1.0 430 75,117$ 480 96,392$ Police Sr. Community Service Officer PEA Misc 1.0 429 74,744$ 479 95,913$ Police Crime Scene/Property & Evidence Specialist PEA Misc 2.0 420 71,463$ 470 91,703$ Police Community Service Officer II PEA Misc 6.0 409 67,648$ 459 86,807$ Police Investigative Specialist II PEA Misc 3.0 409 67,648$ 459 86,807$ Police Community Engagement Specialist PEA Misc 1.0 405 66,311$ 455 85,093$ Police Executive Assistant Conf 1.0 387 60,618$ 437 77,786$ Police Sr. Police Records Technician PEA Misc 1.0 397 63,718$ 447 81,764$ Police Property Room Technician PEA Misc 1.0 377 57,668$ 427 74,002$ Police Police Records Technician PEA Misc 5.0 377 57,668$ 427 74,002$ Police Administrative Assistant PEA Misc 1.0 367 54,863$ 417 70,401$ Police Cadets (Part-Time) N/A 2.0 N/A 17,534$ N/A 20,363$ Public Works/Engineering Director of Public Works and Engineering Contract 1.0 605 179,805$ 655 230,730$ Public Works/Engineering Deputy Director of Public Works/City Engineer Contract 1.0 570 151,004$ 620 193,772$ Public Works/Engineering Engineering Manager (Capital Improvement Program) Mid 1.0 564 146,552$ 614 188,059$ Public Works/Engineering Assistant City Engineer Mid 1.0 547 134,638$ 597 172,772$ Public Works/Engineering Principal Engineer Mid 2.0 534 126,186$ 584 161,925$ Public Works/Engineering Public Works Manager Mid 1.0 525 120,647$ 575 154,817$ Public Works/Engineering Construction Manager Mid 1.0 516 115,351$ 566 148,021$ Public Works/Engineering Senior Engineer (Part-Time) Prof - 504 108,650$ 554 139,422$ Public Works/Engineering Senior Engineer Prof 3.0 504 108,650$ 554 139,422$ Public Works/Engineering Project Manager Gen 1.0 481 96,874$ 531 124,312$ Public Works/Engineering Associate Engineer Gen 5.0 481 96,874$ 531 124,312$ Public Works/Engineering Financial Analyst Prof 1.0 481 96,874$ 531 124,312$ Public Works/Engineering Senior Public Works Inspector Gen 2.0 462 88,116$ 512 113,072$ Public Works/Engineering Fleet & Equipment Supervisor Prof 1.0 449 82,584$ 499 105,974$ Public Works/Engineering Public Works Maintenance Supervisor Prof 1.0 449 82,584$ 499 105,974$ Public Works/Engineering Assistant Engineer Gen 1.0 443 80,149$ 493 102,849$ Public Works/Engineering Management Analyst II Prof 1.0 462 88,116$ 512 113,072$ Public Works/Engineering Management Analyst I Prof 1.0 443 80,149$ 493 102,849$ Public Works/Engineering Public Works Inspector II Gen 2.0 430 75,117$ 480 96,392$ Public Works/Engineering Public Works Inspector I Gen 1.0 409 67,648$ 459 86,807$ Public Works/Engineering Senior Fleet Technician Gen 1.0 420 71,463$ 470 91,703$ Public Works/Engineering Fleet Technician Gen 1.0 395 63,085$ 445 80,953$ Public Works/Engineering Engineering Technician II Gen 1.0 415 69,700$ 465 89,441$ Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 60
Menifee Mayor and City Council
June 5, 2024
Page
1067 of 1108
Effective 06/05/2024
Department Title Classification Group FTE Step From Step To
CITY OF MENIFEE
AUTHORIZED POSITIONS and COMPENSATION
FISCAL YEAR 2024-2025
Annual Salary Ranges2
FY24/25 Mid-Cycle
Reclassification Request
Public Works/Engineering Engineering Technician I Gen 1.0 395 63,085$ 445 80,953$ Public Works/Engineering Senior Street Maintenance Worker Gen 2.0 377 57,668$ 427 74,002$ Public Works/Engineering Senior Street Maintenance Worker (Heavy Equipment) Gen 1.0 377 57,668$ 427 74,002$ Public Works/Engineering Management Aide Gen 1.0 405 66,311$ 455 85,093$ Public Works/Engineering Administrative Assistant Gen 1.0 367 54,863$ 417 70,401$ Public Works/Engineering Street Maintenance Worker II Gen 9.0 360 52,980$ 410 67,986$ Public Works/Engineering Fleet Services Worker I Gen 1.0 340 47,951$ 390 61,531$ Public Works/Engineering Street Maintenance Worker I Gen 2.0 340 47,951$ 390 61,531$ Public Works/Engineering Office Specialist II Gen 1.0 318 42,968$ 368 55,137$ TOTAL BUDGETED POSITIONS 332.5
Group Key:
Elec: Elected POA: Police Officers
Appt: Appointed PEA Misc: Police Employee Miscellaneous Unit Nonrep: Non-Represented Prof: Professional
Conf: Confidential Gen: General
Mid: Mid-Management PT: Part-Time
PMA: Police Management
1Council Member compensation increases will be effective following certification of the November 2024 election. 2COLA increases, if applicable, will be determined at a later date after negotiations are complete with Associations.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 61
Menifee Mayor and City Council
June 5, 2024
Page
1068 of 1108
4 8
7 3
9 RESOLUTION NO. 24-
A RESOLUTION OF THE CITY OF MENIFEE ADOPTING THE REVISED CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2023-2028
WHEREAS, the City of Menifee’s Capital Improvement Program (CIP) is a five year program adjusted annually that outlines public improvements and estimated expenditures to construct improvements. The current CIP has been updated for the 2023-2028 time period for City Council review and consideration; and
WHEREAS, staff has prepared a proposed five-year CIP for Fiscal Years 2023- 2028 which includes proposed funding for each project presented in the CIP, with some projects spanning multiple fiscal years; and
WHEREAS, California Government Code Section 65401 requires that City’s Planning Commission to make a determination that the CIP is in conformance with the City’s General Plan; and
WHEREAS, The FY 2023-2028 CIP is not a “project” within the meaning of Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines (14 Cal. Code Regs.
Section 15000 et seq.), and is therefore exempt from the requirements of CEQA. The CIP is a fiscal budgeting and long-range planning tool. It does not commit the City to construction or implementation of any specific project; and
WHEREAS, the proposed CIP for Fiscal Years 2023-2028 was presented to the City of Menifee Planning Commission at its regularly scheduled public meeting of May 10, 2023 and proposed adjustments/updates were presented to the Planning Commission on May 22, 2024; and
WHEREAS, the Planning Commission, by Resolutions No. PC 23-593 and PC 24-634, made a finding that CIP for Fiscal Years 2023-2028 conforms to the Menifee General Plan; and WHEREAS, the Planning Commission has caused to be transmitted to the City Council a copy of its report and resolution finding that the CIP for Fiscal Years 2023- 2028 conforms to the City’s General Plan; and
WHEREAS, notice of the City Council public hearing on the proposed CIP was provided in compliance with Government Code section 66002; and
WHEREAS, the proposed CIP for Fiscal Years 2023-2028 was noticed for a public hearing on May 24, 2023; and
WHEREAS, the City Council considered testimony and evidence presented at the public hearing on June 7, 2023, and reviewed the proposed CIP for Fiscal Years 2023- 2028 in light of all information presented; and
WHEREAS, the City Council considered public input and feedback at the FY2024/2025 CIP Budget workshop held on April 17, 2024 and Mid-Cycle Budget Workshop held on May 15, 2024, and reviewed the proposed revised CIP for Fiscal Years 2023- 2028 in light of all information presented; and
WHEREAS, the revised 2023-2028 CIP Program revisions as presented to the Planning Commission on May 22, 2024 conform with the City’s General Plan.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 62
Menifee Mayor and City Council
June 5, 2024
Page
1069 of 1108
4 8
7 3
9 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Menifee, California, as follows:
SECTION 1. The City Council confirms and accepts and adopts the finding of the City of Menifee Planning Commission that the revised CIP for Fiscal Years 2023-2028 conforms to the City of Menifee General Plan.
SECTION 2. The City Council finds that the revised CIP for Fiscal Years 2023-2028 demonstrates the efficient use of public funds relating to the implementation of capital improvement projects anticipated to be undertaken throughout the City over the course of the ensuing five years.
SECTION 3. The City Council hereby finds that it can be seen with certainty that there is no possibility that the adoption of this CIP may have a significant effect on the environment.
The CIP is a prioritizing and funding allocation program and cannot and does not have the potential to cause a significant effect on the environment. No physical activity will occur until all required environmental review is conducted at the time the physical improvements prioritized in the CIP are undertaken at a future unspecified date. Accordingly, the adoption of this CIP is therefore exempt from the environmental review requirements of the CEQA and the CEQA Guidelines pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations. In addition, adoption of the CIP is also exempt from CEQA pursuant to Section 15262 of Title 14 of the California Code of Regulations, which covers feasibility or planning studies related to possible future actions.
SECTION 4. The revised CIP for Fiscal Years 2023-2028 is hereby approved and adopted. Recommended revised appropriations for Fiscal Year 2024/2025 are formally approved and a copy of the CIP hereby adopted and certified by the City Clerk, shall be filed with the City Manager or a designated representative, and a further copy so certified shall be placed and shall remain on file in the Office of the City Clerk where it shall be available for inspection.
SECTION 5: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 63
Menifee Mayor and City Council
June 5, 2024
Page
1070 of 1108
4 8
7 3
9 PASSED, APPROVED AND ADOPTED this 5th day of JUNE 2024 Bill Zimmerman, Mayor
Attest:
Stephanie Roseen, Acting City Clerk
Approved as to form:
Jeffrey T. Melching, City Attorney
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 64
Menifee Mayor and City Council
June 5, 2024
Page
1071 of 1108
4 8
7 5
3 RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE,
CALIFORNIA, DESIGNATING A COMMITTED RESERVE FUND BALANCE
FOR PUBLIC FACILITIES
WHEREAS, pursuant to the City adopted Fund Balance Policy for the General Fund (CC-07) as most recently adopted on September 21, 2021, City Council, as the highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constrains imposed by formal actions taken, such as an ordinance or resolution, and
WHEREAS, the City has various public facilities capital projects requiring significant financial resources which will require a multi-year funding strategy to fund, and WHEREAS, the City of Menifee’s adopted Fund Policy allows for the use of surplus fund balance to be used towards capital projects and equipment; and
WHEREAS, to support the necessary funding for the various public facilities projects, the City would like to a designate a Committed Fund Balance for Public Facilities towards such use with the purpose of allowing for periodic contributions, at the Council’s direction, as reserves for these various capital projects.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Menifee, California, as follows:
SECTION 1. Designation of a committed reserved fund balance identified as a Public Facilities Committed Fund Balance account.
SECTION 2. An initial contribution of $2,000,000 be transferred to the Public Facilities Committed Fund Balance account from the Assigned Public Facilities Account.
SECTION 3: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 65
Menifee Mayor and City Council
June 5, 2024
Page
1072 of 1108
4 8
7 5
3 PASSED, APPROVED AND ADOPTED this 5th day of JUNE 2024.
Bill Zimmerman, Mayor
Attest:
Stephanie Roseen, Acting City Clerk
Approved as to form:
Jeffrey T. Melching, City Attorney
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 66
Menifee Mayor and City Council
June 5, 2024
Page
1073 of 1108
CITY OF MENIFEE
FY2024/2025
MID-CYCLE BUDGET REVIEW
PROPOSED
ADJUSTED
BUDGET
SUMMARY
REPORT
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 67
Menifee Mayor and City Council
June 5, 2024
Page
1074 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review Mid-Cycle Purpose: The purpose of the Mid-Cycle Budget review is to provide a comprehensive review of adopted Year 2 budget and identify any necessary revenue and/or expenditure adjustments to begin the new fiscal year.
The FY2024/2025 Mid-Cycle Budget Review examined the adopted FY2024/2025 budget, and incorporates recommended updates in revenues and/or expenditures to the Operating and Capital Improvement Program (CIP) budgets, as well as fiduciary funds. This summary report serves as an appendix to the adopted Biennial Budget and provides an overview of the following:
•
•
Gann Limit Calculation
Revenue and Expenditure Adjustments
PROPOSITION 4 (GANN) APPROPRIATION LIMIT
The City is required by state law to establish an appropriation limit each fiscal year. The appropriations limitation imposed by the state, otherwise known as the Gann Limit, creates a restriction on the amount of revenue that can be appropriated for expenditures.
Only those revenues received from proceeds of taxes are subject to this limit.
Assessment on real property or persons, such as L&LMD and CFD assessments etc., for special benefit conferred are not considered “proceeds of taxes” for purposes of the Gann Limit calculation. This means that only certain revenues from funds such as the General Fund, Quality of Life Fund, etc. are subject to the appropriation limit. Other items, such as certain types of debt service costs and qualified outlays are excluded from the Appropriations Subject to Limitation.
Fiscal Year
FY 09/10
FY 10/11
FY 11/12
FY 12/13
FY 13/14
FY 14/15
FY 15/16
FY 16/17
FY 17/18
FY 18/19
FY 19/20
FY 20/21
FY 21/22
FY 22/23
FY 23/24
FY 24/25 Proposed
Appropriation Limit
$26,049,674
$25,794,220
$27,187,310
$28,728,556
$30,745,565
$31,197,525
$33,047,538
$35,509,580
$37,707,623
$40,117,140
$42,889,234
$45,595,545
$49,493,964
$56,937,856
$61,365,981
$64,469,288
-1-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 68
Menifee Mayor and City Council
June 5, 2024
Page
1075 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review FY2024/2025 GANN Limit and Appropriations Subject to Limit Calculation:
POPULATION GROWTH FACTORS:
1. Population growth of Menifee, OR
2. Population growth within Riverside County,
AND
INFLATION GROWTH FACTORS:
3. Growth in California per capita income, OR
4. Growth in non-residential assessed valuation due to new construction in the city.
The factors used to calculate the FY2024/2025 Limit were:
1. Population growth of Menifee.
AND
3. Growth in California per capita income.
Using the prior year’s Appropriation Limit, the formula used to calculate the Gann Limit is outlined below:
FY2023/2024 Expenditure Limit: $61,365,981
1. % Population growth within Menifee = 1.039%
(Based on 2023 Population of 110,034 per State of California Department of Finance Fiscal Year 2023/24 Annual Percent Change in Population Minus Exclusions* and 2024 Population of 111,560 per State of California Department of Finance Fiscal Year 2023/24 Annual Percent Change in Population Minus Exclusions).
3. Growth in California per capita income = 1.0362 Net Increase Factor Combined Adjustment Factor of 1.051 = (1.0139 x 1.0362) Fiscal Year 2024/2025 Appropriation Limit = Combined Adjustment Factor, 1.051 * 2023/2024 Limit, $61,365,981 = $64,469,288
FY2024/2025 Appropriation Subject to Limit: The actual amount of appropriations contained in the budget that is subject to the limit is $63,552,336. The difference between the City’s appropriation limit and the amount adopted to be appropriated that is subject to the limit is $916,952. As a result, the City, in accordance with state law, is below its appropriation limit.
APPROPRIATION LIMITS
Appropriation Limit Appropriations Subject to the Limit
F Y F Y F Y F Y F Y F Y F Y F Y F Y F Y F Y F Y F Y F Y F Y F Y 0 9 / 1 0 1 0 / 1 1 1 1 / 1 2 1 2 / 1 3 1 3 / 1 4 1 4 / 1 5 1 5 / 1 6 1 6 / 1 7 1 7 / 1 8 1 8 / 1 9 1 9 / 2 0 2 0 / 2 1 2 1 / 2 2 2 2 / 2 3 2 3 / 2 4 2 4 / 2 5 -2-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 69
Menifee Mayor and City Council
June 5, 2024
Page
1076 of 1108
2025 Mid-Cycle Budget Review
FY2024/2025 Mid-Cycle
Economic Outlook & Revenue
Projections Adjustments
The adopted FY 2024/2025 budget reflected a
cautiously optimistic fiscal outlook, with steadily
increasing revenues against the backdrop of an overall
uncertain national and local economy. At a more
localized level, the City of Menifee continues to see
steady growth. Throughout FY 2022/2023 five of the
six top main City revenues (Sales Tax, Quality of Life, Property Tax, Franchise Fees) experienced some
growth, however, at a slower pace than the prior two
fiscal years. Development related fees experienced a
significant decrease in the first half of FY 2022/2023, particularly compared to the last two fiscal years
where the City had experienced record revenue
receipts in this category, but ended with a stronger
performance at the end of the fiscal year.
FY2024/25 ADOPTED REVENUES
As assessed during the FY2023/2024 Mid-Year
Budget review, going into the second half of Fiscal
Year 2023/2024, collectively revenue growth has
stabilized to a slower pace, compared to prior years.
And while Sales Tax and Quality of Life revenues are
still projected to exceed adopted/adjusted revenues
for FY2023/2024, this is primarily attributed to one-
time sales tax revenue generated from the Nova Park
battery storage construction underway in 2024. All
other sales transaction activity has performed slightly below original budget projections. Development
revenue has been in pace with the original budgeted
estimates, but without significant growth. Nationally,
statewide and regionally, lingering inflation has
The General Fund and the Quality of Life Measure (formerly known as Measure DD) is the City’s largest single funding source representing 71% of the City’s total revenue budget for FY 2023/24.
The five (5) primary revenue sources for the General Fund & Quality of Life Funds consist of:
•
•
•
Property tax,
Sales tax,
Development fees (building, planning, engineering, and fire inspection permits),stabilized, with a 3.5% March 2024 CPI. •
•
Vehicle license fees, and
Franchise fees,
Unemployment as of March 2024 was around 3.8% at
the national level and 5.3% statewide. However,
housing permit activity, consumer confidence and
manufacturing data reflect overall slower growth with
weaker sales growth. With interest rates forecast to
not undergo additional increases, but also gradual
decreases, overall economic growth for the upcoming
fiscal year is projected to be modest, if at all.
Incorporating updates to the overall economic
background for the upcoming fiscal year, the
FY2024/2025 Mid-Cycle includes several revenue
adjustments discussed in the following pages.
which make up approximately 90.81% (FY2023/24) and 91.89% (FY2024/25) of the total General Fund & Quality of Life revenues.
FY2024/2025 Mid-Cycle Adjustments Summary:
Total Recommended Adjustments Citywide represent an
increase of $2,360,523 ($465,447 General Fund/Quality of Life and $1,895,076 Gas Tax & Special Revenue Funds. Of note:
-
-
-
-
Sales Tax/Quality of Life Sales Tax Acꢀvity is revised to be decreased by $1.8 million;
Development Revenue is revised to be increased by
$767k;
Interest Revenue in the General Fund/Quality of Life
fund are revised to be increased by $1.015 million;
The majority of the increase of Gas Tax & Special
Revenues increase, $999Kof the $1.8 million is
associated with addiꢀonal assessments for CFD
(maintenance) zones.
-3-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 70
Menifee Mayor and City Council
June 5, 2024
Page
1077 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review FY2024/2025 MID-CYCLE REVENUE ANALYSIS AND PROJECTIONS:
The FY2024/2025 adopted General fund revenue is $73,083,894 and the Quality of Life totals $21,584,750, for a combined total of $94,668,644. The FY2024/2025 proposed adjusted General fund revenue is $74,283,091 and the Quality of Life totals $20,851,000, for a combined total of $95,134,091, a net increase of $465,447.
Special Revenues & Other Fund Revenues for the Adopted FY2024/2025 totaled: $37,848,671 and Proposed Adjusted FY2024/25 total $39,743,747, a net increase of $1,895,076.
Citywide Adopted Budget Revenues for FY2024/2025 totaled: $132,517,315 and Adjusted FY2024/2025 total $134,877,838 a net change of $2,360,523.
Citywide Budget Revenue + Fiduciary Funds = $135,674,980 for FY2024/2025 Adopted and $139,556,476 for FY2024/25 Proposed Adjusted, a net increase of $3,881,493.
The City’s top five budgeted revenue sources for the General Fund and Quality of Life (Measure DD) are listed below.
Together, these five revenue sources represent 92.25%, of the total General Fund and Quality of Life revenues as adopted for the FY2024/2025 budget.
(FY24/25: -5.37%, $1.8 MILLION DECREASE FROM FY2024/2025 ADOPTED) Sales Tax Revenues are derived from 1% of all taxable sales within the City of Menifee. The state-wide sales tax rate in California is 7.25% with an additional 0.5% sales tax in Riverside County, which is dedicated for road maintenance and construction. In January 2017, Menifee added a voter approved 1.00% district tax with Measure DD which brought the local sales tax rate to 8.75%. Sales tax revenues are currently the City’s largest source of revenues. Beginning with the last quarter of FY2022/2023, overall sales transaction activity has experienced a slowdown, reflective of overall retail activity trends at the national level.
Historically, both regular Sales Tax and Quality of Life have experienced healthy year over year growth. Both the FY2023/2024 and adopted FY2024/2025 revenue projections included growth assumptions in line with past performance and consultation with the City’s Sales Tax consultant, HdL. However, as part of the Mid-Cycle review and based on updated quarterly sales tax data provided by the City’s consultant HdL, the proposed adjusted FY2024/2025 sales tax revenue projections are recommended to be decreased by $1.8 million, $876k in regular Sales Tax and $998k in Quality of Life sales tax. While projections for FY2023/2024 are expected to meet original budget, this is principally due to one-time sales tax transaction activity related to the Nova Park Battery storage site, not expected to continue into the new fiscal year. Recurring sales tax activity is expected to be less than originally projected in the budget development process in June 2023.
SALES TAX
REVENUE
(FY24/25: NO ADJUSTMENT FROM FY2024/2025 ADOPTED)
Property Taxes are derived from the assessed values of all properties within the City of Menifee. The Riverside County Auditor-Controller-County Clerk levies a 1% tax on the assessed valuation of all parcels within the County of Riverside. By state statue, under Proposition 13 passed in 1978, under Article XIII, it was established that the maximum increase in assessed values that may increase in one year is the lessor of 2% or the Consumer Price Index (CPI). Of this 1% Ad Valorem tax, the City of Menifee receives a weighted average of 12.91% of the 1% levy while 23.95% is distributed to the Riverside County General Fund, and 48.92% is allocated to local school and college districts. The remaining 14.22% of taxes collected is allocated to special districts within the City’s boundaries. Both the FY2023/2024 and adopted FY2024/2025 property revenue projections included growth assumptions in line with past performance and consultation with the City’s property tax consultant, HdL. In line with the original projections, the City still forecasts overall property tax revenue to grow in FY2024/2025 based on increased assessed valuation, albeit at a more modest pace than some prior years. There are no recommended revenue adjustments for this revenue category as part of the FY2024/2025 Mid-Cycle process.
PROPERTY
TAX
-4-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 71
Menifee Mayor and City Council
June 5, 2024
Page
1078 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review (FY24/25: +5.78%, $767K INCREASE FROM FY2024/2025 ADOPTED) Development revenues represent revenue for services provided by the Community Development (Building and Planning), Engineering, and Fire Departments related to development within the City. The amount of the fees may not exceed the “estimated reasonable cost” of providing the service. Following a comprehensive citywide fee study effort completed during FY2021/22 and effective January 1, 2023, the City implemented an updated citywide fee schedule, impacting all fees, including development/permitting fees. The newly adopted fee schedule captures current costs for the City services. Development fee revenues are generated mostly from new residential and commercial construction while a portion of permits are issued for tenant improvements and remodels.
DEVELOPMENT
REVENUE
During the FY2024/2025 Mid-Cycle process, the Finance Department met with the Development Departments (Community Development, Engineering, and Fire), and discussed year-to-date trends, current project activity, and revised forecast activity for the budget period. Recommended adjustments increases of $767k are reflective of additional development activity expected and the application of the first annual CPI adjustment effective July 15, 2024.
(FY24/25: +.61%, $68K INCREASE FROM FY2024/2025 ADOPTED) As part of the State of California’s FY2011/12 Budget, the Governor signed Senate Bill 89 (SB 89) which shifted millions of Vehicle License Fee (VLF) (Vehicle in Lieu Tax) revenues to fund state law enforcement grants. This legislation particularly adversely impacted the four most recently incorporated cities, including Menifee. In May 2017, Governor Brown signed legislation to reestablish VLF for these four cities, including Menifee. Both the FY2023/2024 and adopted FY2024/2025 VLF revenue projections included growth assumptions in line with past performance and consultation with the City’s consultant, HdL. Recommended FY2024/2025 Mid-Cycle adjustments increases of $67k is based on revised HdL projections.
VLF
REVENUE
(FY24/25: +8.56%, $433K INCREASE FROM FY2024/2025 ADOPTED) Franchise fees are the fifth largest revenue source for the City’s General Fund. Currently, the City has six franchise agreements consisting of two public utilities, three cable TV companies, and one solid waste hauler. Southern California Gas Company was the single largest franchise within the City until 2015 when the commodity price of natural gas dropped and remained below historical prices. SoCal Gas Company generated close to $1 million in franchise fees for the City in FY2014/15. This revenue source dropped to less than $250,000 for FY2019/20. As housing stock increases, franchise fees for natural gas should increase proportionally; however, if the cost of natural gas remains low the City will continue to see below average franchise fees for natural gas.FRANCHISE FEES
The franchise fees associated with the solid waste hauler are anticipated to increase proportionally with the increase in the number of new homes. The average cost per resident for solid waste pickup is $28.00 per month. Recommended FY2024/2025 Mid- Cycle adjustments increases of $433k is based on current year-to-date actuals and projected trends.
-5-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 72
Menifee Mayor and City Council
June 5, 2024
Page
1079 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review Other Revenue Adjustments and Special Revenue & Other Funds Revenues: FY2024/2025 Mid-Cycle Recommended Adjustments
Interest Revenue Proposed FY2024/2025 Mid-Cycle Revenue adjustments include increase of $750k in interest income in the General Fund and $265k for Quality of Life based on FY2022/2023 actuals and year-to-date actuals for FY2023/24, and projected investment activity in the upcoming year.
The City uses Special Revenue Funds & Other Funds to account for restricted revenues received by the City and its component units. Restricted revenues cannot be deposited into the General Fund and must be accounted for separately.
Some of these revenues fund ongoing operations, and some of these revenues fund the CIP, or both.
Proposed Revenue FY2024/2025 Adjustments totaling $1.895 million, include:
-
-
-
-
Interest Earnings Adjustments
Revenue for reprogrammed ARPA projects
Additional special assessment revenue for CFDs (new development) Lighting and Landscape Maintenance (LLMDs), County Service Area (CSAs), Community Facilities Districts (CFDs) annual CPI adjustments, where applicable.
Gas Tax and Special Revenue & Other Fund Revenues: Recommended Revenue adjustments of within the Gas Tax & Special Revenue Funds is principally derived from revenue increases totaling $999k in special assessments for Community Facilities Districts (CFDs) (maintenance). As new zones and/or development activity occurs within the zones, the City will collect new assessments and direct such funding to eligible maintenance responsibilities associated with the corresponding CFD.
-6-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 73
Menifee Mayor and City Council
June 5, 2024
Page
1080 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review FY2024/2025 Mid-Cycle Expenditure Analysis & Recommended Adjustments
The FY2024/2025 adopted General fund expenditures was $73,083,894 and the Quality of Life totals $21,584,750, for a combined total of $94,668,668. The proposed Adjusted FY2024/2025 adopted General fund expenditures is $74,396,965 and the Quality of Life totals $22,226,000, for a combined total of $96,622,965, a net increase of $1,954,321.
Special Revenues & Other Fund Expenditures for the Adopted FY2024/2025 budget totaled: $36,113,838 and for FY2024/2025 total $39,431,073, a net increase of $3,317,235.
Citywide Adopted Budget Expenditures for FY2024/2025 totaled: $130,782,481 and recommended Adjusted FY2024/2025 total $136,054,036, a net increase of $5,271,555.
Citywide Budget Expenditures + Fiduciary Funds = $132,240,341 for FY2024/2025 Adopted Budget and $138,518,237 for FY2024/25 proposed Adjusted Budget, a net increase of $6,277,896.
Budget Categories:
The Operating Budget (General Fund & Quality of Life Fund, Special Revenue & Other Funds) represents annual revenues and expenditures associated with the General Fund/Quality of Life and expenditures, including:
-
-
-
-
Personnel
Operating & Maintenance Costs (including contract services) Capital Outlays & One Time Studies
Debt Service
The Capital Improvement Program (CIP) Budget represents the City’s major infrastructure projects (non-recurring, with a cost of $50,000 or more and with a useful life of five or more years) and is developed in conjunction with the Operating Budget.
Funding sources can include General Fund, Quality of Life funds, and Special Revenue & Other Funds.
Collectively, the Operating and CIP Program are referred to as the “Citywide Budget”.
Expenditure Categories:
I sid a
ers
us
2 s
O
es
o
IP)
CITYWIDE BUDGET SUMMMARY BY BUDGET EXPENDITURE CATEGORY:
Proposed
Adjusted
FY2024/25
Budget ($)
$94,801,925
FY2024/25
Adopted Budget
($)
% of % ofCategory
Operating Budget:
(General Fund & Quality of Life)
Operating Budget:
Citywide
Budget
72.05%
Citywide
Budget
69.68%$94,222,604
24,207,665 18.51% 25,674,900 18.87%
(Special Revenue & Other)
Total Operating Budget: $118,430,269 90.56% $120,476,825 88.55% CIP Program 12,352,212 9.44% 15,577,212 11.45%
TOTAL $130,782,481 100.00% $136,054,036 100.00%
-7-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 74
Menifee Mayor and City Council
June 5, 2024
Page
1081 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review Proposed FY2024/2025 Expenditure Appropriations to the General Fund/Quality of Life include the following items:
Category Description Adjustment
Amount ($)
$341kOperating & Maintenance
Operating & Maintenance
Operating & Maintenance
Increased insurance premiums* (General Liability, Worker’s Compensation Insurance Premiums and/or Claims)
Dispatch Services: Increases for services per labor MOU negotiations for dispatch personnel.
Animal Field Services: Increases for animal field services based on increased service activity.
Aquatics Program, Council Stipends Increase, FY2023/2024 Mid-Year Personnel Adjustments: Previously approved items.
Development Software (Accela/Bluebeam) Integration: Integration of Accela/Bluebeam software, offset by Technology Surcharge revenue Fire Contract Services (Quality of Life to General Fund) Funding Update: To balance the revised revenue projection decrease of $733,750 in the Quality of Life fund, corresponding expenses in the amount of $733,750 will be transferred into the General Fund.
$150k
$107k
$289k
$34k
Operating & Maintenance/
Personnel
Operating & Maintenance
Operating & Maintenance $0 (Expenditure
Transfer)
Capital Outlays/One-Time
Study
Capital Outlays/One-Time
Study
Dispatch Services – Technology System Update: Required dispatch system technology update.
Safety Master Plan (Strategic Plan Item)
$50k
$100k
Capital Outlays Menifee PD Replacement Vehicles (Funding Update to DIF & ARPA)**:
Required dispatch system technology update.
CIP 23-13: Cherry Hills Facility, Phase I
($664k)
$1.375MCIP Program
Deliberate Use of Fund Balance: The proposed expenditure adjustments include the deliberate use of fund balance in the amount of $1,709,792 for the following purposes:
- General Fund Unassigned Fund Balance in the amount of $150,000 for the Safety Master Plan ($100k) and for the Dispatch Services Technology Update ($50k).
General Fund Assigned Fund Balance AMR Fees in the amount of $150,792 for the Purchase 25- automated external defibrillator (AED) from AMR Fees; and the purchase of 21 thermal imaging units for fire suppression personnel from AMR Fees. This fund balance is restricted in use and can only be used for specific eligible purposes.
- General Fund Assigned Fund Technology Surcharge in the amount of $34,000 for the purchase of Accela/Bluebeam software integration. This fund balance is restricted in use and can only be used for specific eligible purposes.
- Quality of Life Unassigned Fund Balance in the amount of $1,375,000 towards the CIP 23-13 Cherry Hills Facility Phase I Project.
-8-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 75
Menifee Mayor and City Council
June 5, 2024
Page
1082 of 1108
City of Menifee Fiscal Year 2024/2025 Mid-Cycle Budget Review PERSONNEL/STAFFING REQUESTS:
FY2024/2025 Mid-Cycle Personnel Requests
Management Analyst II (Reclassification Request)
Management Aide (Reclassification Request)
Public Works Inspector II (Reclassification Request)
Lieutenant (Reclassification Request)
Human Resources Director (Reclassification Request)
Economic Development Manager (Reclassification Request) (1) Office Specialist II (Position Eliminated)
(1) ERP Administrator (Position Unfunded)
TOTAL: (2) FTE
The net fiscal impact of the proposed personnel requests for FY2024/2025 is ($43,242) ( net savings), due to the reclassification of Economic Development Director to Economic Development Manager and elimination of the Office Specialist II within the Fire Marshal’s Office. The office specialist position will be eliminated as a City position and absorbed as part of the Fire Contract Services.
CAPITAL IMPROVEMENT PROGRAM (CIP):
The adopted FY2024/2025 CIP budget included $12,352,212 and 21 projects with an adopted budget of $12,352,212. The proposed adjusted FY2024/2025 CIP budget includes $15,577,212 and 27 projects, a net increase of 6 projects receiving funding and funding increase of $3,225,000. The adopted projects address high priority infrastructure needs of the community. The adopted projects address high priority infrastructure needs of the community.
See Capital Improvement Program (CIP) & Capital Projects Fund Section of the Budget Book for more detailed information on the CIP Program and budget.
Special Revenue & Other Funds
The City uses Special Revenue Funds & Other Funds to account for restricted revenues received by the City and its component units. Restricted revenues cannot be deposited into the General Fund and must be accounted for separately. Some of these revenues fund ongoing operations, and some of these revenues fund the CIP Program, or both. For example, Gas Tax funds a portion of routine right-of-way maintenance such as street maintenance, street sweeping, and traffic signal maintenance, but can also be used to fund street improvement capital projects.
Additionally, the City has several special districts (Landscape and Lighting Maintenance Districts (L&LMDs), County Service Areas (CSAs), and Community Facilities Districts (CFDs), which fund maintenance and operations of parks, open space, roads, street lighting, street sweeping of specific services and capital improvements included within the specific special district.
As part of the citywide budget development process, respective expenditures and revenues are developed for each Special Revenue & Other Funds. Some of the main Special Revenue & Other Funds include, but are not limited to:
1. Internal Services Funds (ISFs): Information Technology, Fleet, and Facilities.
2. Special Districts: L&LMDs, CSAs, CFDs
3. DIF/RBBD/Quimby: Appropriations directed toward the CIP Program.
Of note specific to the Special Revenue & Other Funds, proposed expenditure FY2024/2025 Adjustments include:
-
-
Additional funding for Priority CIP Projects ($1,850,000) Grant Fund/ Development Impact Fee (DIF) Fund: Funding update for Menifee PD Patrol Vehicles from General Fund/ISF to ARP Program ($445k) & DIF Law Enforcement ($218k) CFD Funds: Personnel reclassification requests (portion of costs) Air Quality Management District (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). This would include the deliberate use of IT Fund balance in the amount of $550k.
-
-
-
-
-9-- LLMDs, CSAs, CFDs: Property Tax Finder portal ($24k) Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 76
Menifee Mayor and City Council
June 5, 2024
Page
1083 of 1108
CITY OF MENIFEE BIENNIAL BUDGET
GENERAL FUND & QUALITY OF LIFE SUMMARY
General Fund & Quality of Life (Measure DD)
Adjusted
FY2023/24
Budget
Adopted
FY2024/25
Budget
Adjusted
FY2024/25
Budget
Actual
FY2020/21
Actual
FY2021/22
Actual
FY2022/23Revenue
Property Tax 16,382,480
10,751,434
16,724,722
13,409,061
7,745,487
3,953,129
68,228
17,649,772
12,077,445
19,607,014
16,035,066
8,496,978
4,655,889
128,631
20,538,212
12,287,692
19,634,904
13,471,460
9,687,677
4,883,060
151,559
21,480,342
12,880,452
20,913,120
12,448,213
10,726,533
4,875,000
165,000
22,801,919
13,469,380
21,449,750
13,070,624
11,141,656
5,055,000
173,250
22,801,919
12,592,390
20,451,000
13,838,320
11,210,112
5,487,753
178,236
Sales Tax
Quality of Life (Measure DD)
Building/Planning/Engineering Fees
Vehicle License Fee (VLF)
Franchise Fees
Business License
Transient Occupancy Tax
Recreation Program Fees
Fines and Fees
506,967
139,840
372,924
1,126,860
-
529,006 430,098 550,000 700,000 700,000
384,971 596,316 539,000 496,225 653,506
475,515 656,570 945,750 461,049 469,227
Real Property Transfer Tax
CEQA Revenue
1,523,574
273,032
858,617 850,000 900,000 900,000
2,543,429
202,025
4,608,246
550,000
2,000,000
550,000
2,000,000
550,000Finance (Developer CFDs) Revenue
Misc. Fees
79,640 69,149
1,445,470
227,834
(1,106,7
-2
6 6
-
)
3,716,323
7,588,173
2,274,894
2,359,166
1,672,535
2,136,628
263,163
3,151,628
150,000Transfer In
Total General Fund Revenues $72,934,076 $84,515,639 $95,804,686 $95,563,357 $94,668,644 95,134,091 Adjusted
FY2023/24
Budget
Adopted
FY2024/25
Budget
Adjusted
FY2024/25
Budget
Actual
FY2020/21
Actual
FY2021/22
Actual
FY2022/23Expenditure
General Government
City Attorney 902,778
894,391
817,063
892,209
1,059,815
1,014,049
293,053
1,450,822
999,624
1,292,969
1,252,129
297,335
1,292,969
1,262,129
341,085
City Clerk
City Council 291,863 268,067 282,335
City Executive Office
Communications
Economic Development
Finance
1,384,507
-
1,810,360
-
1,544,453
644,447
1,820,637
817,869
1,969,637
761,355
1,969,637
761,355
1,292,152
1,721,020
1,450,317
6,962,000
14,899,028
1,442,741
2,074,018
2,877,805
7,078,820
17,261,083
1,463,762
2,874,252
4,176,681
4,803,627
17,874,139
1,842,507
3,796,095
5,032,453
4,040,550
20,082,892
1,750,143
3,728,955
4,288,046
3,856,258
19,196,827
1,750,143
3,735,629
4,728,991
3,856,258
19,698,196
Human Resources & Risk Mngt.
General Services
Total General Government
Development Services
CEQA - - - 4,608,246
7,565,985
5,522,106
17,696,337
2,000,000
6,198,863
5,557,603
13,756,466
2,000,000
6,232,863
5,624,049
13,856,912
Community Development
Engineering
4,550,179
3,333,202
7,883,381
5,693,553
3,377,356
9,070,909
7,865,365
3,972,230
11,837,595Total Development Services
Public Safety
Animal Control 666,660
829,680
730,772
801,839
692,064
1,054,257
16,453,108
25,921,870
-
705,891
1,335,270
19,794,693
30,095,794
-
720,025
1,418,089
20,794,633
30,254,998
-
827,296
1,418,089
20,772,725
29,838,653
-
Code Enforcement
Fire 12,923,395
16,894,075
80 12,619,002
22,730,680
-
Menifee Police Department
Police (RSO)
Total Public Safety 31,313,890 36,882,293 44,121,299 51,931,648 53,187,745 52,856,763 -10-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 77
Menifee Mayor and City Council
June 5, 2024
Page
1084 of 1108
Adjusted
FY2023/24
Budget
Adopted
FY2024/25
Budget
Adjusted
FY2024/25
Budget
Actual
FY2020/21
Actual
FY2021/22
Actual
FY2022/23Expenditure
Public Works
Public Works 1,470,852 1,068,302 1,408,009 1,295,458 1,356,777 1,368,414 1,368,414Total Public Works 1,470,852 1,068,302 1,408,009 1,295,458 1,356,777 Community Services
Community Services 2,362,924 3,481,814 4,909,666 5,480,647 5,453,325 5,750,177 5,750,177Total Community Services
Captial Improvement Program (CIP)
CIP (Engineering/Administration)
CIP Projects
2,362,924 3,481,814 4,909,666 5,480,647 5,453,325
1,560
1,030,757
1,032,317
58,962,392
918,775
2,918,213
3,836,988
71,601,389
779,224
2,811,599
3,590,823
83,741,531
1,192,693
30,371,620
31,564,313
128,051,295
1,271,465
446,040
1,271,465
1,821,040
3,092,505
96,622,966
Total CIP 1,717,505
94,668,645Total General Fund Expenditures
Less Capital Expenditures 1,030,757 2,918,213 2,811,599 30,371,620 446,040 1,821,040 Net Operating Expenditures 57,931,635 68,683,176 80,929,932 97,679,675 94,222,605 94,801,926 Revenues Over/(Under) Expenditures:
(Excluding Capital Expenditures) $ 15,002,441 $ 15,832,463 $ 14,874,754 $ (2,116,318) $ 446,040 $ 332,165 -11-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 78
Menifee Mayor and City Council
June 5, 2024
Page
1085 of 1108
CITY OF MENIFEE BIENNIAL BUDGET
REVENUE SUMMARY BY FUND (3 YEAR HISTORY)
General Fund & Quality of Life (Measure DD)
Adjusted
FY2023/24
Budget
Adopted
FY2024/25
Budget
Adjusted
FY2024/25
Budget
Actual
FY2020/21
Actual
FY2021/22
Actual
FY2022/23Revenue by Type & Fund
Property Tax 16,382,480
10,751,434
16,724,722
13,409,061
7,745,487
3,953,129
68,228
17,649,772
12,077,445
19,607,014
16,035,066
8,496,978
4,655,889
128,631
20,538,212
12,287,692
19,634,904
13,471,460
9,687,677
4,883,060
151,559
21,480,342
12,880,452
20,913,120
12,448,213
10,726,533
4,875,000
165,000
22,801,919
13,469,380
21,449,750
13,070,624
11,141,656
5,055,000
173,250
22,801,919
12,592,390
20,451,000
13,838,320
11,210,112
5,487,753
178,236
Sales Tax
Quality of Life (Measure DD)
Building/Planning/Engineering Fees
Vehicle License Fee (VLF)
Franchise Fees
Business License
Transient Occupancy Tax
Recreation Program Fees
Fines and Fees
506,967 529,006 430,098 550,000 700,000 700,000
139,840 384,971 596,316 539,000 496,225 653,506
372,924 475,515 656,570 945,750 461,049 469,227
Real Property Transfer Tax
CEQA Revenue
1,126,860
-
1,523,574
273,032
858,617 850,000 900,000 900,000
2,543,429
202,025
4,608,246
550,000
2,000,000
550,000
2,000,000
550,000Finance (Developer CFDs) Revenue
Misc. Fees
79,640 69,149
1,445,470
227,834
(1,106,726)
3,716,323
$84,515,639
7,588,173
2,274,894
$95,804,686
2,359,166
1,672,535
$95,563,357
2,136,628
263,163
3,151,628
150,000Transfer In
Total General Fund Revenues $72,934,076 $94,668,644 $95,134,091 Other Fund Revenues
Internal Service Funds
Facilities ISF 420,035
818,420
712,282
1,909,593
4,386,234
7,008,109
894,175
2,376,457
4,806,270
8,076,902
938,756
1,944,372
5,604,986
8,488,114
1,207,579
1,993,278
6,107,828
9,308,685
1,212,226
1,826,723
6,148,138
9,187,087
Fleet ISF
Information Technology ISF 3,111,025
4,349,480Total Internal Service Funds
Special Revenues & Other Funds
Gas Tax 2,127,448
1,801,943
2,423,258
227,834
126,469
3,013,118
179,029
835,800
743,594
837,532
2,381,812
9,586,484
2,730,836
-
2,358,285
1,993,202
2,891,446
342,784
2,706,081
2,423,121
3,138,007
164,684
3,049,082
2,653,845
3,046,000
150,000
3,193,556
2,767,637
3,179,400
150,000
120,000
-
3,045,210
2,836,660
3,168,395
150,000
121,162
633,759
142,334
-
SB 1 Road Maintenance Rehabilitation Fund
Measure A
SLESF
AQMD 126,851 141,207 120,025
Grant Fund 4,996,920
116,370
6,029,039
178,060
10,903,601
147,000PEG 140,000
-Transportation Uniform Mitigation Fee (TUMF)
Community Development Block Grant (CDBG)
Landscape & Lighting Maintenance Districts (LLMDs
County Service Areas (CSAs)
Development Impact Fees (DIF/RBBD/Quimby)
Community Facilities District (CFDs) (Maintenance)
Bonded CFDs (Infrastucture)
711,174 1,315,336
400,203
19,763,845
1,212,614
899,182
778,383 527,847
886,189
1,909,576
7,702,445
5,945,332
-
563,249
931,167
1,930,860
7,971,758
6,980,699
-
828,459 850,194
2,061,942
8,494,709
3,543,848
14,115,209
43,359,582
1,887,874
13,938,297
5,111,008
11,274,668
49,557,779
3,507,461
8,453,839
5,912,351
26,504,883
86,323,728Total Special Revenues & Other Funds
Capital Project Fund
27,015,157 26,521,982 28,475,253
Capital Project 2,929,403 (14,472) 687,049 304,685 258,679 311,212 Total Capital Project Fund
Debt Service Fund
2,929,403 (14,472) 687,049 304,685 258,679 311,212
Debt Service Transfers 19,927,828
19,927,828
$54,221,868
8,135,339
8,135,339
1,764,696
1,764,696
1,762,060
1,762,060
1,759,325
1,759,325
1,770,195
1,770,195Total Debt Service Fund
Total Other Funds Revenues $58,488,558 $60,086,426 $96,878,587 $37,848,671 $39,743,747 Total Citywide Budget Revenues $127,155,944 $143,004,197 $155,891,112 $192,441,944 $132,517,315 $134,877,838 -12-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 79
Menifee Mayor and City Council
June 5, 2024
Page
1086 of 1108
Fiduciary Fund Revenues
Adjusted
FY2023/24
Budget
Adopted
FY2024/25
Budget
Adjusted
FY2024/25
Budget
Actual
FY2020/21
Actual
FY2021/22
Actual
FY2022/23Revenue by Type & Fund
Agency/Custodial Funds
Veteran's Memorial
Trust Fund
- 1,335 1,533 -
-
-
-
-
-7,769 (133,210)
1,675,558
1,543,683
(27,627)
2,432,158
2,406,064
Custodial Funds - 6,042,218
6,042,218
3,157,665
3,157,665
4,678,638
4,678,638Total Agency/Custodial Funds 7,769
Total All City Funds Revenues $127,163,713 $144,547,880 $158,297,176 $198,484,162 $135,674,980 $139,556,476 -13-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 80
Menifee Mayor and City Council
June 5, 2024
Page
1087 of 1108
CITY OF MENIFEE BIENNIAL BUDGET
EXPENDITURE SUMMARY BY FUND (3 YEAR HISTORY)
General Fund & Quality of Life (Measure DD)
Adjusted
FY2023/24
Budget
Adopted
FY2024/25
Budget
Adjusted
FY2024/25
Budget
Actual
FY2020/21
Actual
FY2021/22
Actual
FY2022/23Expenditure by Type & Fund
General Government
City Attorney 902,778 817,063 1,059,815
1,014,049
293,053
1,450,822
999,624
1,292,969 1,292,969
City Clerk 894,391
291,863
892,209
268,067
1,252,129
297,335
1,262,129
341,085City Council 282,335
City Executive Office
Communications
Economic Development
Finance
1,384,507
-
1,810,360
-
1,544,453
644,447
1,820,637
817,869
1,969,637
761,355
1,969,637
761,355
1,292,152
1,721,020
1,450,317
6,962,000
14,899,028
1,442,741
2,074,018
2,877,805
7,078,820
17,261,083
1,463,762
2,874,252
4,176,681
4,803,627
17,874,139
1,842,507
3,796,095
5,032,453
4,040,550
20,082,892
1,750,143
3,728,955
4,288,046
3,856,258
19,196,827
1,750,143
3,735,629
4,728,991
3,856,258
19,698,196
Human Resources & Risk Mngt.
General Services
Total General Government
Development Services
CEQA - - - 4,608,246
7,565,985
5,522,106
17,696,337
2,000,000
6,198,863
5,557,603
13,756,466
2,000,000
6,232,863
5,624,049
13,856,912
Community Development
Engineering
4,550,179
3,333,202
7,883,381
5,693,553
3,377,356
9,070,909
7,865,365
3,972,230
11,837,595Total Development Services
Public Safety
Animal Control
Code Enforcement
Fire
666,660
829,680
730,772
801,839
692,064
1,054,257
16,453,108
25,921,870
-
705,891
1,335,270
19,794,693
30,095,794
-
720,025
1,418,089
20,794,633
30,254,998
-
720,025
1,418,089
20,772,725
29,945,924
-
12,923,395
16,894,075
80 12,619,002
22,730,680
-
Menifee Police Department
Police (RSO)
Total Public Safety 31,313,890 36,882,293 44,121,299 51,931,648 53,187,745 52,856,763 Public Works
Public Works 1,470,852 1,068,302 1,408,009 1,295,458 1,356,777 1,368,414 Total Public Works
Community Services
1,470,852 1,068,302 1,408,009 1,295,458 1,356,777 1,368,414 Community Services 2,362,924 3,481,814 4,909,666 5,480,647 5,453,325 5,750,177 Total Community Services
Captial Improvement Program (CIP)
CIP (Engineering/Administration)
CIP Projects
2,362,924 3,481,814 4,909,666 5,480,647 5,453,325 5,750,177 1,560
1,030,757
1,032,317
58,962,392
918,775
2,918,213
3,836,988
71,601,389
779,224
2,811,599
3,590,823
83,741,531
1,192,693
30,371,620
31,564,313
128,051,295
1,271,465
446,040
1,271,465
1,821,040
3,092,505
96,622,966
Total CIP 1,717,505
94,668,645Total General Fund Expenditures
Other Fund Expenditures
Internal Service Funds
Facilities ISF 395,635
784,553
448,080
1,289,850
3,329,754
5,067,684
631,484
1,776,932
4,542,143
6,950,559
1,357,665
2,927,678
6,391,414
10,676,757
1,207,578
1,993,278
6,107,828
9,308,684
1,207,578
1,818,278
6,777,828
9,803,684
Fleet ISF
Information Technology ISF 2,535,124
3,715,312Total Internal Service Funds
-14-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 81
Menifee Mayor and City Council
June 5, 2024
Page
1088 of 1108
Adjusted
FY2023/24
Budget
Adopted
FY2024/25
Budget
Adjusted
FY2024/25
Budget
Actual
FY2020/21
Actual
FY2021/22
Actual
FY2022/23Expenditure by Type & Fund
Special Revenues & Other Funds
Gas Tax 1,970,451 2,062,237 2,130,309
2,833,030
1,396,549
164,684
3,532,133
4,501,201
6,863,430
150,000
3,251,556 3,251,556
SB 1 Road Maintenance Rehabilitation Fund
Measure A
1,143,790
1,973,052
227,834
-
661,431
1,428,233
99,679
2,774,000 2,774,000
3,179,249
150,000
35,000
3,179,249
SLESF 150,000
AQMD 171,330 39,951 165,049 -
Grant Fund 2,637,208
-
5,109,724
218,254
5,340,899
62,650
10,784,044
63,000
-
-
595,472
42,250PEG
Transportation Uniform Mitigation Fee (TUMF)
Community Development Block Grant (CDBG)
Landscape & Lighting Maintenance Districts (LLMDs)
County Service Areas (CSAs)
Development Impact Fees (DIF/RBBD/Quimby)
Community Facilities District (CFDs) (Maintenance)
Bonded CFDs (Infrastucture)
1,350,911
839,065
665,913
1,723,998
4,832,568
2,175,596
-
676,902 2,060,925
403,822
19,763,845
1,212,614
1,020,161
3,412,888
37,053,620
6,471,322
31,634,016
126,627,323
- -
589,768 527,847
940,883
2,812,933
6,071,661
5,079,024
-
527,847
984,723
2,958,591
7,715,189
5,395,510
-
678,474 759,677
1,608,666
6,114,482
1,981,956
2,411,898
23,813,034
1,691,212
11,253,400
2,494,381
12,325,891
42,957,380Total Special Revenues & Other Funds
Capital Project Fund
19,540,386 24,787,153 27,609,387
Capital Project 1,153,338 1,270,715 1,090,088 5,637,425 258,679 258,679 Total Capital Project Fund
Debt Service Fund
1,153,338 1,270,715 1,090,088 5,637,425 258,679 258,679 Debt Service Transfers 20,944,071
20,944,071
$45,353,107
8,128,075
8,128,075
1,745,445
1,745,445
1,755,860
1,755,860
1,759,325
1,759,325
1,759,325
1,759,325Total Debt Service Fund
Total Other Funds Expenditures $38,279,508 $52,743,472 $144,697,365 $36,113,841 $39,431,075 $136,054,041Total Citywide Budget Expenditures $104,315,499 $109,880,897 $136,485,003 $272,748,660 $130,782,486 Fiduciary Fund Expenditures
Agency/Custodial Funds
Veteran's Memorial -
15,000
-
2,375
-
-
-
-
-
-
-
-
-Trust Fund
Custodial Funds 57,539
59,914
918,063
918,063
2,059,104
2,059,104
1,457,860
1,457,860
2,464,197
2,464,197Total Agency/Custodial Funds 15,000
Total All City Funds Expenditures $104,330,499 $109,940,811 $137,403,066 $274,807,764 $132,240,346 $138,518,238 -15-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 82
Menifee Mayor and City Council
June 5, 2024
Page
1089 of 1108
CITY OF MENIFEE
FIVE (5) YEAR FORECAST (REVENUE SUMMARY BY FUND)
Adopted
Budget
Adjusted
BudgetREVENUE BY TYPE & FUND Forecast Forecast Forecast Forecast FY2024/25 FY2024/25 FY2025/26 FY2026/27 FY2027/28 FY2028/29 General Fund & Quality of Life (Measure DD) Revenues
Property Tax (incl. VLF In-Lieu)
Sales & Use Taxes
$33,943,576
34,919,130
700,000
$34,012,031
33,043,390
700,000
$35,678,004
34,406,855
729,306
$37,313,839
37,159,404
760,016
$38,970,865
39,017,374
790,462
$40,845,120
40,968,243
826,889Transient Occupancy Tax (TOT)
Business License/Operations Tax
Other Taxes
173,250 178,236 180,826 188,481 196,381 204,611
900,000 900,000 935,056 979,164 1,027,642
5,971,178
17,041,319
1,842,811
-
1,077,659
6,138,564
17,486,728
1,883,771
-
Franchise Fees 5,055,000
14,591,925
1,565,099
2,820,663
$94,668,644
5,487,753
15,605,272
2,507,409
2,700,000
$95,134,091
5,641,687
16,179,011
2,004,823
-
5,805,396
16,615,691
1,804,340
-
Permits, Fees & Chrgs. for Service
Cost Recovery, Earnings & Misc.
Transfers In & One-Time Revenues
Total General Fund/Measure DD Revenues
Other Fund Revenues
$95,755,568 $100,626,333 $104,858,032 $109,431,584
Internal Service Funds
Facilities ISF 1,207,579
1,993,278
6,107,828
9,308,685
1,212,226
1,826,723
6,148,138
9,187,087
1,272,837
1,918,059
6,455,545
9,646,441
1,336,479
2,013,962
6,778,322
10,128,763
1,403,303
2,114,660
7,117,238
10,635,202
1,473,468
2,220,393
7,473,100
11,166,962
Fleet ISF
Information Technology ISF
Total Internal Service Funds
Special Revenues & Other Funds
Gas Tax 3,193,556
2,767,637
3,179,400
150,000
120,000
-
3,045,210
2,836,660
3,168,395
150,000
121,162
633,759
142,334
-
3,197,471
2,978,493
3,326,815
150,000
120,000
-
3,357,344
3,127,418
3,493,155
150,000
120,000
-
3,525,211
3,283,789
3,667,813
150,000
120,000
-
3,701,472
3,447,978
3,851,204
150,000
120,000
-
SB 1 Road Maintenance Rehabilitation Fund
Measure A
SLESF
AQMD
Grant Fund
PEG 140,000
-
142,334
-
142,334
-
142,334
-
142,334
-Transportation Uniform Mitigation Fee (TUMF)
Community Development Block Grant (CDBG)
Landscape & Lighting Maintenance Districts (LLMDs)
County Service Areas (CSAs)
Development Impact Fees (DIF/RBBD/Quimby)
Community Facilities District (CFDs) (Maintenance)
Bonded CFDs (Infrastructure)
527,847
886,189
1,909,576
7,702,445
5,945,332
-
563,249
931,167
1,930,860
7,971,758
6,980,699
-
563,249
935,823
1,940,514
8,370,346
7,120,313
-
563,249
940,502
1,950,217
8,788,863
7,262,719
-
563,249
945,204
1,959,968
9,228,306
7,407,974
-
563,249
949,930
1,969,768
9,689,722
7,556,133
-
Total Special Revenues & Other Funds 26,521,982 28,475,253 28,845,357 29,895,801 30,993,848 32,141,790 Capital Project Fund
Capital Project 258,679 311,212 - - - -
Total Capital Project Fund
Debt Service Fund
258,679 311,212 - - - -
Debt Service Transfers 1,759,325 1,770,195 1,773,735 1,777,283 1,780,837 1,784,399 Total Debt Service Fund 1,759,325 1,770,195 1,773,735 1,777,283 1,780,837 1,784,399 -16-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 83
Menifee Mayor and City Council
June 5, 2024
Page
1090 of 1108
Adopted
Budget
Adjusted
BudgetREVENUE BY TYPE & FUND Forecast Forecast Forecast Forecast FY2024/25 FY2024/25 FY2025/26 FY2026/27 FY2027/28 FY2028/29 Agency/Custodial Funds
Veteran's Memorial
Trust Fund
- - - - - -
-
3,157,665
3,157,665
$41,006,336
-
4,678,638
4,678,638
$44,422,385
-
4,772,211
4,772,211
$45,037,745
-
4,867,655
4,867,655
$46,669,503
-
4,965,008
4,965,008
$48,374,896
-
5,064,308
5,064,308
$50,157,459
Custodial Funds
Total Agency/Custodial Funds
Total Other Funds Revenues
Total All City Funds Revenues $135,674,980 $139,556,476 $140,793,312 $147,295,835 $153,232,927 $159,589,042 Revenue Forecast Summary:
Revenue projections for the General Fund and Quality of Life (Measure DD) Funds are calculated with the 10-year financial forecast model. Categories of revenue are broken into categories according to how those revenue sources are impacted by various economic factors.
The model does not reflect any anticipated economic recessions or large additional revenues or expenditures, as it is primarily used to project how revenues and expenses will grow in-line with the broader economy. Operating revenues across the General Fund are primarily expected to grow at a healthy pace over the next 5 years as the City continues to expand.
The line 'Transfers In, & One-Time Revenues' are those revenues that are not recurring and are therefore not projected forward.
Other Funds projections are calculated individually based primarily on historical performance. -17-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 84
Menifee Mayor and City Council
June 5, 2024
Page
1091 of 1108
CITY OF MENIFEE
FIVE (5) YEAR FORECAST (EXPENDITURE SUMMARY BY FUND)
Adopted Adjusted
EXPENDITURE BY TYPE &
FUND
Budget Budget Forecast Forecast Forecast Forecast
FY 2024/25 FY2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 General Fund & Quality of Life (Measure DD) Expenditures Salaries & Wages $29,828,814
9,362,117
4,213,897
30,325,120
4,285,587
1,559,502
828,380
$29,252,981
10,223,512
4,125,441
30,842,391
4,285,587
1,944,447
328,380
$30,569,365
10,681,728
4,319,540
32,178,990
4,417,530
2,138,892
656,760
$31,944,986
11,164,471
4,588,750
33,687,282
4,570,238
2,352,781
681,782
$33,382,510
11,644,103
4,874,731
35,117,221
4,707,371
2,408,534
706,009
$34,884,723
12,161,277
5,170,761
36,776,116
4,879,085
2,467,790
732,163
Benefits
Pension & OPEB
Contractual Services (labor)
Operating Supp. & Equip. (non-labor)
Insurance & Liability
Capital Asset Investments (non-CIP)
Internal Charges & Leased Facilities/Equip.
Capital, Transfers Out, & One-Time Expenses
Total General Fund/Measure DD Expenditures
Other Fund Expenditures
2,278,470
11,986,756
$94,668,644
2,278,472
13,341,755
$96,622,965
2,365,760
11,331,653
$98,660,219
2,457,137
9,176,828
$100,624,255
2,545,660
9,589,785
$104,975,925
2,641,270
10,021,325
$109,734,511
Internal Service Funds
Facilities ISF 1,207,578
1,993,278
6,107,828
9,308,684
1,207,578
1,818,278
6,777,828
9,803,684
1,267,957
1,909,192
7,116,719
10,293,868
1,331,355
2,004,651
7,472,555
10,808,562
1,397,922
2,104,884
7,846,183
11,348,990
1,397,922
2,104,884
7,846,183
11,348,990
Fleet ISF
Information Technology ISF
Total Internal Service Funds
Special Revenues & Other Funds
Gas Tax 3,251,554
2,774,000
3,179,249
150,000
-
3,251,556
2,774,000
3,179,249
150,000
35,000
3,414,134
2,912,700
3,338,211
150,000
-
3,584,840
3,058,335
3,505,122
150,000
-
3,764,083
3,211,252
3,680,378
150,000
-
3,952,287
3,371,814
3,864,397
150,000
-
SB 1 Road Maintenance Rehabilitation Fund
Measure A
SLESF
AQMD
Grant Fund - 595,472
42,250
- - - -
PEG - - - - -
Transportation Uniform Mitigation Fee (TUMF)
Community Development Block Grant (CDBG)
Landscape & Lighting Maintenance Districts (LLMDs)
County Service Areas (CSAs)
Development Impact Fees (DIF/RBBD/Quimby)
Community Facilities District (CFDs) (Maintenance)
Bonded CFDs (Infrastucture)
- - - - - -
527,847
940,885
2,812,934
6,071,661
5,079,019
-
527,847
984,723
2,958,591
7,715,189
5,395,510
-
527,847
1,033,959
3,106,521
8,100,948
5,665,286
-
527,847
1,085,657
3,261,847
8,505,996
5,948,550
-
527,847
1,139,940
3,424,939
8,931,296
6,245,977
-
527,847
1,196,937
3,596,186
9,377,860
6,558,276
-
Total Special Revenues & Other Funds
Capital Project Fund
24,787,149 27,609,387 28,249,606 29,628,194 31,075,711 32,595,604 Capital Project 258,679 258,679 - - - -
Total Capital Project Fund
Debt Service Fund
258,679 258,679 - - - -
Debt Service Transfers 1,759,325 1,759,325 1,762,844 1,766,369 1,769,902 1,769,902 Total Debt Service Fund 1,759,325 1,759,325 1,762,844 1,766,369 1,769,902 1,769,902 -18-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 85
Menifee Mayor and City Council
June 5, 2024
Page
1092 of 1108
Adopted
Budget
Adjusted
Budget
EXPENDITURE BY TYPE &
FUND
Forecast Forecast Forecast Forecast
FY 2024/25 FY2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Agency/Custodial Funds
Veteran's Memorial
Trust Fund
-
-
- - - - -
-
2,464,197
2,464,197
$41,895,272
- - - -
Custodial Funds 1,457,860
1,457,860
$37,571,697
-
-
- - -
Total Agency/Custodial Funds
Total Other Funds Expenditures
- - -
$40,306,318 $42,203,125 $44,194,603 $45,714,496
Total All City Funds Expenditures $132,240,341 $138,518,237 $138,966,537 $142,827,380 $149,170,528 $155,449,007 Expenditure Forecast Summary:
Expenditure projections for the General Fund and Quality of Life (Measure DD) Funds are calculated with the 10-year financial forecast model. Categories of expenditures are broken into categories according to how those expenditures are impacted by various economic factors.
The model does not reflect any anticipated economic recessions or large additional revenues or expenditures, as it is primarily used to project how revenues and expenses will grow in-line with the broader economy. Operating expenditures across the General Fund are primarily expected to grow in accord with historical trends.
The line 'Capital, Transfers Out, & One-Time Expenses' are those expenditures that are not recurring with the exception of ISF allocations. These are the only expenditures projected forward in that category.
Other Funds projections are calculated individually based primarily on historical performance. -19-
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 86
Menifee Mayor and City Council
June 5, 2024
Page
1093 of 1108
Capital Improvement Program
(Proposed FY2024/2025 Mid-Cycle Updates)
June 5, 2024
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 87
Menifee Mayor and City Council
June 5, 2024
Page
1094 of 1108
Summary of Proposed Adjustments
As part of the FY2024/2025 Mid-Cycle review, a comprehensive review of the proposed budget was performed during a public Council Workshop held on April 17, 2024. At this meeting the following revisions were made to the FY 24/25 budget:
FY2024/2025 NEW CIP ADJUSTMENTS DETAILS
Project Category Project Name & Number FY2024/2025
Adjustment ($)
Notes
Transportation CIP 20-01: Scott Road
Bundy Canyon
Widening
$1,000,000 Additional funding for design and ROW
acquisition.
PMP CIP 25-07: FY24-25
Local Roads AC
Resurfacing Project
CIP 21-04: New Fire
Station #5 (Quail
Valley)
$155,000 Additional funding for construction of ADA
ramps and street resurfacing.
Public Facility $200,000 Additional funding to continue construction management and inspection efforts for the
project.
Public Facility CIP 23-10: Community
Center/Recreation
Center
$200,000 Additional funding to leverage matching
local funds when applying for grants.
Public Facility
Public Facility
CIP 23-13: Cherry Hills
Facility Phase I
CIP 24-05: Fire Station
#76 Living Area
Improvements
$1,375,000
$75,000
Additional funding for existing project.
Additional funding for the construction
phase.
Public Facility Kay Ceniceros Display
Sign
$50,000 New Project. Replacement of existing LED
sign.
Parks, Trails & Recreation CIP 24-22: Sun City
Blvd. Street Medians
$100,000 Additional funding for the construction
phase.
IT CIP 25-02: Axon RMS
System
($50,000) Project cancelled at the request of the Police Department.
IT City Hall Back-Up
Generator
$120,000 New Project. Installation of emergency back-
up generators at City’s server room.
Parks, Trails & Recreation Banner Park Playground
Enhancement
$0 New Project. This project would install
additional playground/amenities at Banner
Park
Street Improvements Goetz Road Pedestrian
Improvements - Rock
Canyon Dr. to Audie
Murphy Rd.
$0 New Project. This project would add 2,300
linear feet of pedestrian/bicycle facilities
along one side of Goetz Road
TOTAL $3,225,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 88
Menifee Mayor and City Council
June 5, 2024
Page
1095 of 1108
FY2024/2025 AMENDED CIP DETAIL SUMMARY BY CATEGORY
FY2024/2025 Proposed
Adjusted BudgetFY2024/2025 Adopted Budget
PROJECT CATEGORY # of # ofAdopted Amount Requested AmountProjects Projects Transportation
Traffic Signals
Street Improvements
Pavement Management (PMP)
Drainage
3 2
3 4
3 $2,859,237
$1,378,094
$1,692,000
$4,132,000
$749,000
-
4 2
3 3
3 $3,859,237
$1,378,094
$1,692,000
$4,287,000
$749,000
-Streetlights 0 0
Public Facilities 1
3 2
21 $108,548
$1,200,000
$233,333
$12,352,212
6 4
2 27
$2,008,548
$1,300,000
$303,333
$15,577,212
Parks, Trails, and Recreation
Technology Infrastructure
TOTALS
The proposed adjusted FY 2024/2025 budget includes a total of 27 projects with a proposed budget of $15,577,212. The proposed projects address high priority infrastructure needs of the community. The following tables summarize the new proposed FY 2024/2025 CIP Program adjustments and FY 2023-2028 CIP by Project Category:
FY2024/2025 AMENDED CIP DETAIL SUMMARY BY PROJECT
Project
No.
FY 24-25
Adopted
Mid-Cycle
Requests
FY 24-25
AmendedProject Name
Scott Road/Bundy Canyon Road
WideningCIP 20-01
CIP 20-03
- $1,000,000 $1,000,000
McCall Boulevard Widening $520,237 -
-
$520,237
CIP 25-03 Murrieta Rd Widening (Holland to port)
Holland Rd Widening (Bradley to
$1,500,000 $1,500,000
CIP 25-04
CIP 23-02
CIP 25-05
CIP 24-04
CIP 24-15
$839,000
$1,202,594
$175,500
$589,000
$553,000
-
-
-
-
-
$839,000
$1,202,594
$175,500
$589,000
$553,000
Haun)
Goetz Road/Vista Way Traffic Signal
Evans Road/Craig Avenue Traffic
Signal
Romoland Elementary School - ATP
Watson Rd at Harvest Valley
Elementary School – ATP
Murrieta Rd/Holland Rd Intersection
ImprovementsCIP 25-01
PMP 25-01
$550,000
$923,000
-
-
$550,000
$923,000FY 24-25 Slurry Seal Program
FY 24-25 Local Roads AC Resurfacing
ProgramCIP 25-07
CIP 25-08
CIP 25-09
$1,409,000
$1,800,000
$749,000
$155,000 $1,564,000
$1,800,000
$749,000
Antelope Road – Holland to Newport -
-Garbani Road Drainage Improvements
– MDPDrainage
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 89
Menifee Mayor and City Council
June 5, 2024
Page
1096 of 1108
CIP 21-04 New Quail Valley Fire Station No. 5
Community Center/Recreation Center
Cherry Hills Facility, Ph. I
- $200,000 $200,000
CIP 23-10
CIP 23-13
CIP 24-05
NEW
-
-
-
-
$200,000
$1,375,000
$75,000
$200,000
$1,375,000
$75,000Fire Station No. 76 - Living Area
Improvements
Kay Ceniceros Display Sign $50,000 $50,000
Fire Station No. 68 – Interior
Improvements – Ph. IICIP 25-06 $108,548 - $108,548
CIP 22-27
CIP 24-12
CIP 24-13
CIP 24-22
Quail Valley Park
La Ladera Park Enhancements
Public Arts in Parks
$250,000
$900,000
$50,000
-
- $250,000
$900,000
$50,000
-
-
Sun City Boulevard Street Medians $100,000 $100,000
AMR Park Surveillance and Technology
UpgradesCIP 16-06 $183,333 - $183,333
Axon RMS System for Police
Department Implementation
(project has been cancelled at the
request of PD)
CIP 25-02 $50,000
-
-$50,000
$120,000
-
NEW City Hall Back-Up Generator $120,000
Totals $12,352,212 $3,275,000 $15,577,212
The total number of projects identified in the FY 2023-2028 CIP Budget Book are identified in the table below:
FY 2023-2028PROJECT CATEGORY
Transportation
# of Projects Estimated Cost
$403,826,73735
25 32
33 10
4 Traffic Signals 20,433,494
32,884,238
33,942,614
20,140,000
2,600,000
Street Improvements
Pavement Management (PMP)
Drainage
Streetlights
Public Facilities 23
30 3
177,637,319
46,252,063
2,003,333
Parks, Trails, and Recreation
Technology Infrastructure
TOTALS 194 $739,719,798
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 90
Menifee Mayor and City Council
June 5, 2024
Page
1097 of 1108
Scott Road / Bundy Canyon Road Widening
CIP 20-01
Project Description, Purpose, and Need: Priority: 1
Within the City of Menifee, Scott Road/Bundy Canyon Road is a 2-lane rural roadway with no shoulders from Haun Road to Sunset Avenue.
Due to the narrowness of the existing road it is prone to heavy traffic congestion and severe traffic collisions. The project will widen the Category:
Department:
Transportation
Engineering
May-26existing Scott Road from two lanes to four lanes between Haun Road and Sunset Avenue and will add 14-foot median and 10-foot shoulders in Target Construction Start:
each direction. The project will also construct drainage improvements and relocate existing utilities. Construction Duration:
Project Phase:
Strategic Plan Goal:
Project Map
14 months
Environmental
Connectivity & Mobility
Project Cost by Phase
Current Year Estimates
Design
Environmental
Right of Way
Construction Management
Construction
$
$
$
$
$
$
2,572,940
1,220,900
5,000,000
3,500,000
31,000,000
43,293,840Total Project Costs
Estimated Maintenance Cost:
https://cityofmenifee.maps.arcgis.com/apps/Shortlist/index.html?appid=8604e81f1bb14fd3bda909f8ca27a5ea
PROJECT BUDGET DETAILS
Fund Source Approved Funding to
date
Proposed
2023-24
Proposed
2024-25
Future Funding Estimates
2026-27 2027-28 TOTALFund # Fund Name
105 Quality of Life Measure
220 Measure A
2025-26 Future Years
$
$
$
$
$
$
$
$
$
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-301 Grants
310 TUMF 5,179,000 5,179,000
320 Capital Projects
410 Scott Road RBBD
527 DIF Citywide - Storm Drain Facilities
- -
875,434 1,000,000 1,875,434
-
-
-
-
-
-
-
-0
0 Developer Deposits
UNFUNDED 36,239,406 36,239,406
TOTALS
CUMULATIVE TOTALS
$
$
6,054,434
6,054,434
$ - $
$
1,000,000
7,054,434
$
$
- $
$
- $
$
- $
$
36,239,406
43,293,840
$ 43,293,840
$ 6,054,434 7,054,434 7,054,434 7,054,434
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 91
Menifee Mayor and City Council
June 5, 2024
Page
1098 of 1108
New Quail Valley Fire Station No. 5
CIP 21-04
Project Description, Purpose, and Need: Priority: 1
The project consists of building a new facility at a vacant lot on Goetz Road south of Vista Way. The new facility will replace Fire Station No.5 that has become inadequate to serve the communities of Quail Valley and Audie Murphy Ranch.
Category:
Department:
Facilities
Engineering
Jan-23
11 months
Construction
Safe & Vibrant Community
Target Construction Start:
Construction Duration:
Project Phase:
Strategic Plan Goal:
Project MapProject Cost by Phase
Current Year Estimates
Design $ 892,382
Environmental
Right of Way
Construction Management
Construction
Total Project Costs
$
$
$
600,000
9,662,392
11,154,774
Estimated Maintenance Cost:
https://cityofmenifee.maps.arcgis.com/apps/Shortlist/index.html?appid=8604e81f1bb14fd3bda909f8ca27a5ea
PROJECT BUDGET DETAILS
Fund Source
Fund Name
Approved Funding
to date
Proposed
2023-24
Proposed
2024-25
Future Funding Estimates
2026-27 2027-28 TOTALFund # 2025-26 Future Years
105 Quality of Life Measure
320 Capital Projects
508 DIF 17 - Fire
$
$
$
$
5,638,207
1,000,000
3,174,041
1,142,526
$
$
$
$
-
-
-
-
$
$
$
$
-
-
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
5,638,207
1,000,000
3,324,041
1,192,526
150,000
50,000521 DIF Citywide - Fire Facilities
TOTALS
CUMULATIVE TOTALS
$
$
10,954,774
10,954,774
$
$
- $
$
200,000 $
$
- $
$
- $
$
- $ - $ 11,154,774
10,954,774 11,154,774 11,154,774 11,154,774 11,154,774 $ 11,154,774 Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 92
Menifee Mayor and City Council
June 5, 2024
Page
1099 of 1108
Community Center/Recreation Center Project
CIP 23-13
Project Description, Purpose, and Need: Priority: 2
The project proposes to construct a Community Center on an undeveloped 3 acre property at La Piedra Road next to the new Menifee Library. Category: Facilities The community center will feature multi-purpose rooms and areas for indoor activates. Department: Community Services Jan-26
14 months
Preliminary Engineering
Thriving Economy
Target Construction Start:
Construction Duration:
Project Phase:
Strategic Plan Goal:
Project MapProject Cost by Phase
Current Year Estimates
Design $ 1,100,000
Environmental
ROW $
$
$
$
-
500,000
8,463,000
10,063,000
Construction Management
Construction/Acquisition
Total Project Costs
Estimated Maintenance Cost:
https://cityofmenifee.maps.arcgis.com/apps/Shortlist/index.html?appid=8604e81f1bb14fd3bda909f8ca27a5ea
PROJECT BUDGET DETAILS
Fund Source
Fund Name
Approved Funding
to date
Proposed
2023-24
Proposed
2024-25
Future Funding Estimates
2026-27 2027-28 TOTALFund # 2025-26 Future Years
100 General Fund
301 Grants
520 DIF Citywide - Public Use & Community Fa
$
$
$
1,000,000
-
263,000
$
$
$
-
-
-
$
$
$
-
-
$
$
$
-
-
-
$
$
$
-
-
-
$
$
$
-
-
-
$
$
$
-
-
-
$
$
$
1,000,000
-
463,000200,000
UNFUNDED
TOTALS
CUMULATIVE TOTALS
$
$
$
8,600,000
8,600,000
10,063,000
$
$
1,263,000
1,263,000
$
$
- $
$
200,000
1,463,000
$
$
- $
$
- $
$
- $ 10,063,000
1,263,000 1,463,000 1,463,000 1,463,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 93
Menifee Mayor and City Council
June 5, 2024
Page
1100 of 1108
Cherry Hills Facility
CIP 23-13
Project Description, Purpose, and Need: Priority: 2
The project proposes to make interior modifications and improvements to house City staff. Category: Facilities Department: Community Services
Jan-25
8 months
Preliminary Engineering
Thriving Economy
Target Construction Start:
Construction Duration:
Project Phase:
Strategic Plan Goal:
Project MapProject Cost by Phase
Current Year Estimates
Design $ 130,000
Environmental
Building Purchase
Construction Management
Construction/Acquisition
Total Project Costs
$
$
$
$
1,700,000
150,000
1,610,000
3,590,000
Estimated Maintenance Cost:
https://cityofmenifee.maps.arcgis.com/apps/Shortlist/index.html?appid=8604e81f1bb14fd3bda909f8ca27a5ea
PROJECT BUDGET DETAILS
Fund Source
Fund Name
Approved Funding
to date
Proposed
2023-24
Proposed
2024-25
Future Funding Estimates
2026-27 2027-28 TOTALFund # 2025-26 Future Years
105 Quality of Life Measure
301 Grants
$
$
$
-
2,215,000
-
$
$
$
-
-
-
$
$
$
1,375,000 $
$
$
-
-
-
$
$
$
-
-
-
$
$
$
-
-
-
$
$
$
-
-
-
$ 1,375,000
-
-
TOTALS
CUMULATIVE TOTALS
$
$
2,215,000
2,215,000
$
$
- $
$
1,375,000
3,590,000
$
$
- $
$
- $
$
- $
$
- $ 3,590,000
2,215,000 3,590,000 3,590,000 3,590,000 3,590,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 94
Menifee Mayor and City Council
June 5, 2024
Page
1101 of 1108
Fire Station No. 76 - Living Room Improvements
CIP 24-05
Project Description, Purpose, and Need: Priority: 1
This project proposes to remodel and retrofit the existing living area, kitchen, and staff office spaces. In additional the project proposes to add Category: Facilities an additional bedroom to increase staff capacity. Department: Engineering Target Construction Start:
Construction Duration:
Project Phase:
Strategic Plan Goal:
Project Map
Jul-24
6 months
Preliminary Design
Safe & Vibrant Community
Project Cost by Phase
Current Year Estimates
Design
Environmental
Right of Way
Construction Management
Construction
$
$
$
$
$
$
117,000
-
-
65,000
543,000
725,000Total Project Costs
Estimated Maintenance Cost:
https://cityofmenifee.maps.arcgis.com/apps/Shortlist/index.html?appid=8604e81f1bb14fd3bda909f8ca27a5ea
PROJECT BUDGET DETAILS
Fund Source
Fund Name
521 DIF Citywide - Fire Facilities
UNFUNDED
Approved Funding
to date
Proposed
2023-24
Proposed
2024-25
Future Funding Estimates
2026-27 2027-28 TOTAL
725,000
Fund # 2025-26 Future Years
$
$
-
-
$
$
650,000 $
$
75,000 $
$
-
-
$
$
-
-
$
$
-
-
$
$
-
-
$
0 - -
TOTALS
CUMULATIVE TOTALS
$
$
-
-
$
$
650,000
650,000
$
$
75,000
725,000
$
$
- $
$
- $
$
- $
$
- $ 725,000
725,000 725,000 725,000 725,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 95
Menifee Mayor and City Council
June 5, 2024
Page
1102 of 1108
Sun City Boulevard Street Medians
CIP 24-22
Project Description: Priority: 1
Design plans of the Cherry Hills Blvd Median are being finalized. The project will beautify approx. 930 LF of street median located Category: Street Improvements on Cherry Hills Blvd, between Pebble Beach Dr and Sun City Blvd. Project includes minimal/no maintenance Department: Engineering Target Construction Start:
Construction Duration
Project Phase:
July 2024
1 year
Preliminary Engineering
Strategic Plan Goal:
Project Map
Connectivity & Mobility
Project Cost by Phase
Current Year Estimates
Design
Environmental
Right of Way
Construction Management
Construction $ 100,000
Total Project Costs $ 100,000
Estimated Maintenance Cost:
https://cityofmenifee.maps.arcgis.com/apps/Shortlist/index.html?appid=8604e81f1bb14fd3bda909f8ca27a5ea
PROJECT BUDGET DETAILS
Approved Funding to
dateFund Source
Fund Name
301 Grants (ARPA)
Proposed
2023-24
Proposed
2024-25
Future Funding Estimates
2026-27 2027-28
TOTAL
100,000
Fund # 2025-26 Future Years
$ - $ - $ 100,000 $ -
-
$ - $ -
-
$ - $
$
$
$
-
-
-
TOTALS
CUMULATIVE TOTALS
$
$
-
-
$
$
-
-
$
$
100,000
100,000
$
$
$
$
- $
$
$
$
- $ 100,000
100,000 100,000 100,000 100,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 96
Menifee Mayor and City Council
June 5, 2024
Page
1103 of 1108
FY 24/25 Local Roads AC Resurfacing Program
CIP 25-07
Project Description:
This project would resurface various existing residential streets with 1-1/2" new asphalt and upgrade existing curb ramps to Priority:
Category:
1 Street Improvements
current ADA standards. Department: Engineering
Target Construction Start:
Construction Duration
Project Phase:
July 2024
1 year
Preliminary Engineering
Strategic Plan Goal:
Project Map
Connectivity & Mobility
Project Cost by Phase
Current Year Estimates
Design
Environmental
Right of Way
Construction Management
Construction $ 1,564,000
Total Project Costs $ 1,564,000
Estimated Maintenance Cost:
https://cityofmenifee.maps.arcgis.com/apps/Shortlist/index.html?appid=8604e81f1bb14fd3bda909f8ca27a5ea
PROJECT BUDGET DETAILS
Approved Funding to
dateFund Source
Fund Name
201 RMRA (SB1)
200 Gas Tax
220 Measure A
481 CDBG
Proposed
2023-24
Proposed
2024-25
Future Funding Estimates
2026-27 2027-28
TOTAL
974,000
Fund # 2025-26 Future Years
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
974,000 $
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
- -
435,000
155,000
435,000
155,000
TOTALS
CUMULATIVE TOTALS
$
$
-
-
$
$
-
-
$
$
1,564,000
1,564,000
$
$
- $
$
- $
$
- $
$
- $ 1,564,000
1,564,000 1,564,000 1,564,000 1,564,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 97
Menifee Mayor and City Council
June 5, 2024
Page
1104 of 1108
Kay Ceniceros Display Sign
Project Description, Purpose, and Need: Priority: 1
The existing LED display sign outside of the Kay Ceniceros Community Center has been non-operational for several years. The Category: Public Facility Community Services
Aug-24
LED sign is used to provide vital information to the community and broadcast information on special events and programs offered by the City. The project will replace and install a new LED sign.
Department:
Target Construction Start:
Construction Duration:
Status:
1 month
Strategic Plan Goal:
Project Cost by Phase Project Map
2024 Target Year Expenditures
Estimates to-date
Design
Environmental
Right of Way
Construction Management
Construction
Total Project Costs
$
$
$
$
$
$
-
-
-
-
$
$
$
$
$
$
-
-
-
-
-
-
50,000
50,000
Estimated Maintenance Cost:
PROJECT BUDGET DETAILS
Proposed
2024-25
50,000
Fund Source Future Funding EstimatesApproved Funding
to date TOTAL
50,000
Fund # Fund Name 2025-26 2026-27 2027-28 2028-29 Future Years 301 Grant Funds (ARPA) $
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS 50,000 50,000
CUMULATIVE TOTALS $ - $ 50,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 98
Menifee Mayor and City Council
June 5, 2024
Page
1105 of 1108
City Hall Back-Up Generator
Project Description, Purpose, and Need: Priority: 1
Existing server rooms have limited power supply of approx. 30 minutes in the event of a power outage, which could create severe issues such as damage or erasure of critical data. The emergency back-up generator would ensure daily City operations Department:
could resume in the event of an emergency
Category: Public Facility
Community Services
Nov-24Target Construction Start:
Construction Duration:
Status:
1 month
Strategic Plan Goal:
Project Cost by Phase Project Map
2024 Target Year Expenditures
Estimates to-date
Design
Environmental
Right of Way
Construction Management
Construction
Total Project Costs
$
$
$
$
$
$
-
-
-
-
$
$
$
$
$
$
-
-
-
-
-
-
120,000
120,000
Estimated Maintenance Cost:
PROJECT BUDGET DETAILS
Proposed
2024-25
120,000
Fund Source Future Funding EstimatesApproved Funding
to date TOTAL
120,000
Fund # Fund Name 2025-26 2026-27 2027-28 2028-29 Future Years 110 Information Technology $
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS 120,000 120,000
CUMULATIVE TOTALS $ - $ 120,000
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 99
Menifee Mayor and City Council
June 5, 2024
Page
1106 of 1108
Goetz Road Pedestrian Improvements - Rock Canyon Dr to Audie Murphy Road Project Description, Purpose, and Need: Priority: 3
Due to recent re-districting, residents have been re-assigned to attend the new Kathryn Newport Middle School. There is currently an existing sidewalk gap between Rock Canyon Drive and just north of Audie Murphy Road. This project would add 2,300 linear feet of pedestrian/bicycle facilities along one side of Goetz Road.
Category:
Department:
Street Improvements
Engineering
TBDTarget Construction Start:
Construction Duration:
Status:
4 months
Strategic Plan Goal:
Project Cost by Phase Project Map
2024 Target Year Expenditures
Estimates to-date
Design
Environmental
Right of Way
Construction Management
Construction
Total Project Costs
$
$
$
$
$
$
110,000
30,000
-
85,000
725,000
950,000
$
$
$
$
$
$
-
-
-
-
-
-
Estimated Maintenance Cost:
PROJECT BUDGET DETAILS
Proposed
2024-25
Fund Source Future Funding EstimatesApproved Funding
to date TOTAL
950,000
Fund # Fund Name 2025-26 2026-27 2027-28 2028-29 Future Years UNFUNDED $
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
950,000 $
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
CUMULATIVE TOTALS
950,000 950,000
$ - $ -
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 100
Menifee Mayor and City Council
June 5, 2024
Page
1107 of 1108
Banner Park Playground Enhancement
Project Description, Purpose, and Need: Priority: 3
Banner Park does not currently have an all-weather playground structure. This project would install additional playground/amenities at Banner Park.
Category:
Department:
Parks, Trails, and Recreation
Community Services
TBDTarget Construction Start:
Construction Duration:
Status:
5 months
Strategic Plan Goal:
Project Cost by Phase Project Map
2024 Target
Year Estimates
Expenditures
to-date
Design
Environmental
Right of Way
Construction Management
Construction
Total Project Costs
$
$
$
$
$
$
70,000
-
$ -
-
-
-
-
-
$
$
$
$
$
-
30,000
250,000
350,000
Estimated Maintenance Cost:
PROJECT BUDGET DETAILS
Proposed
2024-25
Fund Source
Fund Name
Future Funding EstimatesApproved
Funding to date TOTALFund # 2025-26 2026-27 2027-28 2028-29 Future Years UNFUNDED $ -
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
$ 350,000 $
$
$
$
$
$
$
$
$
$
$
$
350,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
CUMULATIVE TOTALS
350,000 350,000
$ - $ -
Item Title: 12.2
Fiscal Year 2024/2025 Mid-Cycle Budget Amendments and Fund Balance Policy Revision Item Page Number: 101
Menifee Mayor and City Council
June 5, 2024
Page
1108 of 1108