Report to City Council
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TO: Mayor and City Council
Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of
the Moreno Valley Community Services District (CSD)
Mayor and City Council Acting in its Capacity as
Chairman and Commissioners of the Moreno Valley
Housing Authority (HA)
Mayor and City Council Acting in its Capacity as
Members of the Moreno Valley Successor Agency (SA)
Mayor and City Council Moreno Valley Community
Foundation (MVCF)
FROM: Brian Mohan, City Manager
Melissa Walker, Public Works Director/City Engineer
Dena Heald, Chief Financial Officer/City Treasurer
AGENDA DATE: June 3, 2025
TITLE: PUBLIC HEARING AND ADOPTION OF THE CAPITAL
IMPROVEMENT PLAN AND BUDGET FOR FISCAL
YEARS 2025/26 & 2026/27 (2025-XX, HA 2025-XX, CSD
2025-XX, SA 2025 -XX, MVCF 2025 -XX) (REPORT OF:
CITY MANAGER) (ALL DISTRICTS)
TITLE SUMMARY: Public Hearing and Adoption of the Capital Improvement Plan and Budget for FYs 2025/26 & 2026/27
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Conduct a Public Hearing to adopt Resolution No. 2025 -XX. approving the Capital Improvement Plan (CIP) and Budget for FYs 2025/26 & 2026/27; and
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2. Authorize the Public Works Director to prepare/finalize the CIP once adopted by Council for the purpose of completing the California Society of Municipal Finance Officers award program requirements and final distribution; and
3. Authorize the Chief Financial Officer to consolidate the adopted CIP Budget with adopted City Operating Budget for FYs 2025/26 and 2026/27.
That the Housing Authority:
1. Conduct a Public Hearing to adopt Resolution No. HA 2025 -XX, a Resolution of the Moreno Valley Housing Authority of the City of Moreno Valley, California, approving the CIP for FYs 2025/26 and 2026/27; and
2. Authorize the Public Works Director to prepare/finalize the CIP once adopted by Council for the purpose of completing the California Society of Municipal Finance Officers award program requirements and final distribution; and
3. Authorize the Chief Financial Officer to consolidate the adopted CIP Budget with the adopted City Operating Budget for FYs 2025/26 and 2026/27.
That the CSD:
1. Conduct a Public Hearing to adopt Resolution No. CSD 2025 -XX, a Resolution of the Community Services District of the City of Moreno Valley, California, approv ing the CIP for FYs 2025/26 and 2026/27; and
2. Authorize the Public Works Director to prepare/finalize the CIP once adopted by Council for the purpose of completing the California Society of Municipal Finance Officers award program requirements and final distribution; and
3. Authorize the Chief Financial Officer to consolidate the adopted CIP Budget with the adopted City Operating Budget for FYs 2025/26 and 2026/27.
That the City Council as Successor Agency:
1. Conduct a Public Hearing to adopt Resolut ion No. SA 2025 -XX, a Resolution of the Successor Agency to the Community Redevelopment Agency of the City of Moreno Valley, California, approving the CIP for FYs 2025/26 and 2026/27; and
2. Authorize the Public Works Director to prepare/finalize the CIP once adopted by Council for the purpose of completing the California Society of Municipal Finance Officers award program requirements and final distribution; and
3. Authorize the Chief Financial Officer to consolidate the adopted CIP Budget with the adopted City Operating Budget for FYs 2025/26 and 2026/27.
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That the Moreno Valley Community Foundation:
1. Conduct a Public Hearing to adopt Resolution No. MVCF 2025-XX, a Resolution of the Moreno Valley Community Foundation of the City of Moreno Valley, California, approving the CIP for FYs 2025/26 and 2026/27; and
2. Authorize the Public Works Director to prepare/finalize the CIP once adopted by Council for the purpose of completing the California Society of Municipal Finance Officers award program requirements and final distribution; and
3. Authorize the Chief Financial Officer to consolidate the adopted CIP Budget with the adopted City Operating Budget for FYs 2025/26 and 2026/27.
SUMMARY
This report recommends the adoption of five resolutions approving the Capital Improvement Program (CIP) for FYs 2025/26 and 2026/27. The CIP identifies the City of Moreno Valley’s infrastructure repairs and replacements as well as capital improvement needs for future expansion and build -out for each fiscal year prioritizing them based on City Council direction and anticipated funding availability. The proposed improvements as included in this CIP are found to be in conformance with City's General Plan by the Planning Commission, and the proposed CIP budget was reviewed and recommended for City Council's approval by the Finance Subcommittee.
DISCUSSION
The purpose of the CIP is a planning tool that identifies needed repairs and replacements of aging City infrastructure over the years, as well as prioritizing improvements and expansions to meet future demands. The proposed CIP covers a 5 year period and establishes capital budget for the first two years, Fiscal Years 2025/26 and 2026/27. The Proposed CIP also provides budget projection for infrastructure improvements beyond a 5 year period until City build -out as referenced in the General Plan's land use and circulation elements. Improvement work included in the Proposed CIP are categorized in different infrastructure types and corresponding funding sources. The improvements are further grouped into different funding statuses as fully funded, partially funded, and unfunded (for future years). A detailed project sheet is prepared for each improvement to include general information such as work descri ption, implementation schedule, and current budget and/or new budget requests for the next two years.
The CIP identifies and estimates the costs of planning, designing, repairing/replacing existing facilities or constructing new facilities in various infrastructure types, including:
Streets and Highways Parks and Landscaping
Bridges Traffic Signals
Buildings Underground Utilities
Drainage Others
Electric Utility
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The proposed improvements prioritized for the current year and for the next two years, FYs 2025/26 and 2026/27, are based on the community’s immediate enhancement needs and council's requests, economic feasibility, safety, anticipated development trends, and other similar factors. In addition, the proposed CIP also incorporates improv ements that match the strategic plan priorities, objectives, and initiatives from the Council approved Momentum MoVal document.
California Government Code Section 66002 provides that the CIP shall be updated and adopted through a resolution by the governing body of the local agency at a public hearing. The Proposed CIP was made available for public review on May 15, 2025, and a public notice was published in the Press Enterprise. The CIP for FYs 2025/26 and 2026/27 book is not attached to this report due to its size and is available for review on the City’s Public website. A hard copy of the document is also available at the City Clerk’s office and the Main Library. The sixty-six (66) projects with new fund requests in FYs 2025/26 and 2026/27 are attached to this report for review.
The CIP was presented to the Planning Commission on May 8, 2025, and was found to be in conformance with the City’s General Plan.
The CIP was presented at the May 13, 2025 study session meeting with Council.
If approved, staff anticipates submitting the CIP and required documents to the California Society of Municipal Finance Officers Capital Budget award program for consideration.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this st aff report and as set forth in the proposed Resolutions approving the CIP. Staff recommends this alternative as it will allow for implementing the funding, planning, design, and construction of necessary capital improvements.
2. Do not approve and authorize the recommended actions as presented in this staff report and as set forth in the proposed Resolutions and Capital Improvement Plan and direct staff to return with changes. Staff does not recommend this alternative as it will delay the funding, planning, design, and construction of necessary capital improvements.
FISCAL IMPACT
Projects have been identified as funded , partially funded or unfunded for FYs 2025/26 and 2026/27 and beyond to better understand anticipated future needs for the City.
However, approval of the recommended actions as included in this staff report will provide the funding and expenditure plan for capital improvements for FYs 2025/26 and 2026/27 only.
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Section Description FY 2025/26
New Request
FY 2026/27
New Request
Total
80001 Street Improvements $15,195,000 $9,595,000 $24,790,000 80002 Bridges $1,310,000 $10,000 $1,320,000
80003 Buildings $6,400,000 $50,000 $6,450,000
80004 Drainage, Sewers, and
Waterlines
$390,000 $390,000 $780,000
80005 Electric Utility $24,818,501 $26,292,500 $51,111,001 80006 Landscaping $1,830,000 $1,825,000 $3,655,000
80007 Parks $1,894,000 $3,970,000 $5,864,000
80008 Traffic Signals $3,517,000 $1,370,000 $4,887,000
80009 Underground Utilities - - -
80010 Other $500,000 $500,000 $1,000,000
Total $55,854,501 $44,002,500 $99,857,001
The project sheets attached to this staff report provide information regarding the proposed funding source for each project requesting new funding over the next two years. A summary of the funding sources for the projects in FYs 2025/26 and 2026/27 are as follows:
Revenue Sources Total
General Fund $1,600,000
Capital Projects Reimbursements $100,000
Community Facility District Fees $1,275,000
Development Impact Fees $5,457,000
Facilities Replacement Reserves $7,400,000
Highway Users Tax Account (HUTA) / Gas Tax $2,290,000
Measure A $10,080,000
Moreno Valley Utility $51,511,001
Parkland Improvements Fees $4,814,000
Quimby In-Lieu Park Fees $950,000
Road Maintenance and Rehabilitation Account (RMRA) / SB1 $10,800,000 Special Districts Landscape Zones/Medians / Districts Fees $2,580,000 Storm Water Management Fees $780,000
Traffic Signal Mitigation $220,000
The City Council will be kept apprised of the City’s projects through Quarterly CIP Reviews. This practice has been utilized in the past with Operating Budget and will be applied during this two-year CIP funding cycle to ensure that the City Council is apprised of project progress compared to the CIP. Any unexpected changes will be analyzed and addressed quickly to maintain the integrity of the CIP.
NOTIFICATION
Notice of this meeting was published in the Press Enterprise newspaper on May 15, 2025.
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Additional notification was made available through the City website and Publication of the agenda. As of the date of this report preparation, staff has not received any public inquiries in response to the notice for this Capital Improvement Plan adoption.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Natalia Lopez Dena Heald
Financial Resources Division Manager Chief Financial Officer/City Treasurer
Concurrence By: Department Head Approval:
Harold Zamora, P.E. Melissa Walker, P.E.
Engineering Division Manager/ Assistant City Engineer Public Works Director / City Engineer
Concurrence By: Department Head Approval:
Sean P. Kelleher Brian Mohan
Assistant City Manager (Development Services) City Manager
CITY COUNCIL GOALS
Public Safety. Provide a safe and secure environment for people and property in the community, control the number and severity of fire and hazardous material incidents, and provide protection for citizens who live, work and visit the City of Moreno Valley.
Community Image, Neighborhood Pride and Cleanliness . Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ATTACHMENTS
1. FY 2025.26 & 2026.27 CIP - City Resolution
2. FY 2025.26 & 2026.27 CIP - HA Resolution
3. FY 2025.26 & 2026.27 CIP - CSD Resolution
4. FY 2025.26 & 2026.27 CIP - SA Resolution
5. FY 2025.26 & 2026.27 CIP - MVCF Resolution
6. FY 2025.26 & 2026.27 CIP - New Funding Requests
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Report Approval Details
Document Title: STAFFREPORT_CM_CIP ADOPTION_06.03.25.docx Attachments: - FY 2025.26-2026.27 CIP-City Resolution.pdf - FY 2025.26-2026.27 CIP - HA Resolution.pdf
- FY 2025.26-2026.27 CIP - CSD Resolution.pdf
- FY 2025.26-2026.27 CIP - SA Resolution.pdf
- FY 2025.26-2026.27 CIP - MVCF Resolution.pdf
- FY 2025.26-2026.27 CIP - New Funding Requests.pdf
Final Approval Date: May 28, 2025
This report and all of its attachments were approved and signed as outlined below:
Brian Mohan
Patty Rodriguez
Natalia Lopez
Dena Heald
Launa Jimenez
Patty Rodriguez