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: Felicia London, Chief Financial Officer/City Treasurer
AGENDA DATE: June 16, 2026
TITLE: FISCAL YEAR 2025/26 THIRD QUARTER OPERATING
& CIP BUDGET REVIEW AND APPROVAL OF THE
THIRD QUARTER OPERATING & CIP BUDGET
AMENDMENTS (REPORT OF: FINANCIAL AND
MANAGEMENT SERVICES) ( DISTRICT: ALL
DISTRICTS)
TITLE SUMMARY: Fiscal Year 2025/26 Third Quarter Operating & CIP Budget Review and Approval of the Third Quarter Operating & CIP Budget Amendments
DISTRICT: All Districts
Recommendation(s)
That the City Council:
ID: 26-0227 Page 2
1. Receive and file the Fiscal Year (FY) Third Quarter Operating Budget Review.
2. Receive and file the Fiscal Year (FY) Third Quarter CIP Budget Review.
3. Adopt Resolution No. 2026 -XX. A resolution of the City Council of the City of Moreno Valley, California, adopting the revised operating and CIP budgets for Fiscal Year 2025/26.
4. Approve an amendment to the Adopted FY 2025/26 & 2026/27 Capital Improvement Plan (CIP) to incorporate the proposed projects.
That the CSD:
1. Adopt Resolution No. 2026 -XX. A resolution of the Board of Directors of the Moreno Valley Community Services District, adopti ng the revised operating and CIP budgets for Fiscal Year 2025/26.
2. Approve an amendment to the Adopted FY 2025/26 & 2026/27 Capital Improvement Plan (CIP) to incorporate the proposed projects.
That the Housing Authority:
1. Adopt Resolution No. HA 2026 -XX. A resolution of the Board of Directors of the City of Moreno Valley Housing Authority, adopting the revised operating and CIP budgets for Fiscal Year 2025/26
2. Approve an amendment to the Adopted FY 2025/26 & 2026/27 Capital Improvement Plan (CIP) to incorporate the proposed projects.
That the City Council as Successor Agency:
1. Adopt Resolution No. SA 2026 -XX. A resolution of the City Council of the City of Moreno Valley, Serving as Successor Agency for the former Community Redevelopment Agency of the City of Moreno Valley, adopting the revised operating and CIP budgets for Fiscal Year 2025/26.
2. Approve an amendment to the Adopted FY 2025/26 & 2026/27 Capital Improvement Plan (CIP) to incorporate the proposed projects.
That the Moreno Valley Community Foundation:
1. Adopt Resolution No. MVCF 2026-XX. A resolution of the Board of Directors of the Moreno Valley Community Foundation, adopting the revised operating and CIP budgets for Fiscal Year 2025/26.
2. Approve an amendment to the Adopted FY 2025/26 & 2026/27 Capital Improvement Plan (CIP) to incorporate the proposed projects.
3. Approve the Moreno Valley Community Foundation Budget.
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SUMMARY
This report provides the Third Quarter Financial Summary (Operating and CIP Budget Reviews), which updates the Mayor and City Council regarding current year financial trends through March 31, 2025. This report also requests the approval of certain FY 2025/26 & 2026/27 revenue and expenditure budget amendments.
DISCUSSION
Based on a long -term practice of maintaining a structurally balanced budget and being identified as one of the most fiscally fit cities in the Country, on May 6, 2025, the City Council continued this trend and adopted the Two-Year Operating Budget for Fiscal Years 2025/26 – 2026/27, while adhering to those past practices. Additionally, as established after the last recession, the budget continues to fund and maintain separate reserves specifically established for periods of economic uncertainty or natural disasters. The budget included all component units of the City, including the General Fund, Community Services District, Housing Authority, Successor Agency, and the Moreno Valley Community Foundation. During the two -year budget period, the City Council will be updated on the City’s financial condition through the process of Quarterly Budget Reviews. This ongoing process ensures a forum to review expenditure and revenue changes from the es timates made in the budget document. Additionally, any significant changes in projected revenue or unanticipated expenditures that may occur will be presented to the City Council.
This report provides the FY 2025/26 Third Quarter Financial Summary for the first nine months, July through March. The Third Quarter Financial Summary will focus primarily on the City’s General Fund. This review will also present nine-month operational results from other key funds.
The City Council’s direction of “Maintain a Bal anced General Fund Budget” serves as a foundation for the fiscal status of City operations. Ongoing funding is directed to sustain ongoing operational expenses: one -time funding is directed toward one -time expenditures. This report identifies the budget adjustments as recommended by the City Manager.
FISCAL YEAR 2025/26 BUDGET ADJUSTMENTS
The FY 2025/26 General Fund revenue budget, as amended, totals approximately $168 million. Based on economic activity and revenue collections through March 2025, staff is recommending a Third Quarter budget increase of $8.8 million, to approximately $176.8 million.
The FY 2025/26 General Fund expenditures budget as currently amended totals approximately $168 million. The fund continues to be structurally balanced, without the use of fund balance for ongoing operations . The specific budget adjustments for other major funds are summarized in Exhibit A.
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Fund Type
(Rev/Exp)
FY 2025/26
Amended
Budget
Proposed
Adjustments
FY 2025/26
Amended
Budget
Proposed
Adjustments
(%)
General Fund* Rev $167,986,703 $8,827,625 $176,814,328 <6% General Fund* Exp $167,979,703 $8,827,625 $176,807,328 <6% Net Total $7,000 $0 $7,000
*To include Measure U.
Summaries of Other Major Funds
A summary of some of the proposed budget adjustments to other major funds are identified in Exhibit A to the Resolutions.
ALTERNATIVES
1. Approve Recommended Actions as set forth in this staff report, including the approval of the budget adjustments, as presented in Exhibit A. The approval of these items will allow ongoing activities to be carried out in the current fiscal year and the City is able to modify budgets and operations as necessary through this quarterly review, while retaining a structurally balanced General Fund budget. Staff recommends this alternative.
2. Do not approve the proposed Recommended Actions as set forth in this staf f report. including the resolutions adopting the budget adjustments to the budget, as presented in Exhibit A. Staff does not recommend this alternative.
FISCAL IMPACT
The City’s Operating and CIP Budgets provide the funding and expenditure plan for all funds. As such, they serve as the City’s financial plan for the fiscal year. The fiscal impacts for the proposed budget amendments are identified in Exhibit A.
NOTIFICATION
Publication of the agenda.
PREPARATION OF STAFF REPORT
Prepared By: Approved by:
Stephanie Cuff Felicia London
Senior Management Analyst Chief Financial Officer/City Treasurer
Concurred By:
Natalia Medina
Financial Resources Division Manager
Concurred By:
Anna Chacon
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Deputy Finance Director (Administration)
CITY COUNCIL GOALS
Advocacy: Develop cooperative intergovernmental relationships and be a forceful advocate of City policies, objectives, and goals to appropriate external governments, agencies and corporations.
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 neighborh ood preservation efforts, including home rehabilitation and neighborhood restoration.
Positive Environment: Create a positive environment for the development of Moreno Valley's future.
Public Facilities and Capital Projects: Ensure that needed public facil ities, roadway improvements, and other infrastructure improvements are constructed and maintained.
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.
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
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
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Report Approval Details
Document
Title:
STAFFREPORT_FMS_OPERATINGANDCIPBUDGET_FY2025-
26_THIRDQUARTER.docx
Attachments: - FY 2025-26 Third Quarter Operating Budget Review.pdf - FY 2025-26 Third Quarter CIP Budget Review.pdf.pdf
- City Resolution 2026-XX.pdf
- Community Services District Resolution 2026-XX.pdf
- Housing Authority Resolution 2026-XX.pdf
- Successor Agency Resolution 2026-XX.pdf
- Moreno Valley Community Foundation Resolution 2026-XX.pdf - Moreno Valley Community Foundation Budget.pdf
Final
Approval
Date:
Jun 10, 2026
This report and all of its attachments were approved and signed as outlined below:
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez