PROPOSED
FISCAL YEAR 2024
-
25 OPERATING BUDGET &
CAPITAL IMPROVEMENT
PROGRAM
JUNE 18, 2024
CITY COUNCIL MEETING
• The annual budget provides the financial mechanism to carry out the City’s work plan and provide services to residents
• Operating Budget
• Supports public services such as public safety, parks and recreation, planning and engineering, street maintenance, and water and wastewater • Capital Improvement Budget
• Allocates funding for projects that improve critical infrastructure such as parks, streets, sidewalks, drainage, water and sewer systems • Continues the City’s investment in and enhancement of public facilities and community amenities
Budget Overview
• Benefits being realized from key prior decisions:
• Ambulance fee update
• Pension obligation bonds
• Five-year agreement with SD County Sheriff’s Dept.
• History of responsible fiscal management
• Additional projects include:
• Update to the City’s indirect cost allocation plan (CAP) - underway • Development Services and Fire fees study/update (once CAP is completed) • Water and wastewater cost of services study
• Budgetary impacts from:
• Continued inflation
• Challenging labor market
Budget Overview
Budget Overview
Expenditures (and other uses) by Fund (in millions)
Fiscal Year 2024-25
Operating Non-
Operating Total
General (Unrestricted) $ 58.93 $ 6.06 $ 64.99
Water (Enterprise) 33.45 5.49 38.94
Wastewater (Enterprise) 11.37 1.29 12.66
Capital Replacement (Special Purpose) 3.04 3.22 6.26
Streets (Special Purpose) 1.75 4.36 6.11
Special Districts (Special Purpose) 3.44 0.30 3.74
Pension Reserve (Reserve) 1.94 0.00 1.94
Drainage (Special Purpose) 1.17 0.63 1.80
Debt Service/Other 0.18 7.03 7.21
TOTAL (ALL FUNDS)
$115.27
$28.38
$143.65
General Fund
Proposed Budget Summary
Fiscal Year 2024-25
Operating Revenue $63,419,061
Transfers In 833,759
T otal Revenue $64,252,820
Operating Expenditures1 $58,926,513
Transfers Out 4,686,334
Transfers Out to Reserve Funds 1,360,516
Capital Projects 20,000
T otal Expenditures and Other Uses $64,993,363
Net Activity ($740,543)
1 Includes $1.76 million Los Penasquitos Lagoon restoration cost share funded from the unassigned fund balance
General Fund Revenues
General Fund Revenues
(and Other Sources)
Property
Taxes
$28.9m | 45%
$16.5m | 26%
Sales Tax
$3.9m | 6%
Community Services
Fees
$2.1m | 3%
Development Services
Fees
Franchise Fees
$3.2m | 5%
Other
$2.7m | 4%
Interest
$2.3m | 4%
Fire &
Ambulance Fees
$3.7m | 6%
$0.9m | 1%
TOT
General Fund Expenditures
General Fund Expenditures
Fiscal Year 2022-23
$16.1m | 25%
Fire Department
Law
Enforcement
$15.7m | 24%
Community Services
+ Parks Maintenance
$12.0m | 18%
$4.6m | 7%
General/Admin.
$6.9m | 11%
Development
Services & Housing
Other Uses (Debt,
Other Transfers)
$6.0m | 9%
Public Works
(less Parks
Maint.)
$3.6m | 6%
General Fund Expenditures
(and Other Uses)
• In addition to scheduled increases in accordance with current labor agreements, the proposed budget includes special salary range adjustments to bring positions to the median within the San Diego market of comparable cities/positions
• Estimated cost:
• General Fund $ 802,900
• Water Utility Fund $ 486,700
• Wastewater Utility Fund $ 262,000
• Other various funds $ 134,900
• Total $1,686,500
Personnel Costs
• Maintains current authorized staffing levels
• No additional positions requested
• Total authorized staffing = 240.23 full time equivalent positions • Reclassification of one vacant Interpretive Services
Coordinator position to an Interpretive Park Ranger
• Change in Battalion Chiefs’ overtime compensation
• From straight time to time and one-half
• Consistent with the San Diego market
Personnel Costs
• Water and Wastewater Utilities:
• Cost of service study
• Urban Water Management Plan update
• Water loss audit
• Risk & Resilience Assessments & Emergency Response Plan update • Watershed Sanitary Survey
• Other notable items include:
• Paramedic mechanical chest compression devices (two)
• Fire Inspector vehicle
• Winter Festival enhancements
New Programs / Expenditure Requests
• Reserve balances provide resources for future projects and unforeseen needs that may arise
• General Fund:
• Revenue Volatility Reserve Fund (10%) $ 5.5 million
• Expenditure Volatility Reserve Fund (5%) $ 2.8 million • Extreme Events Reserve Fund (30%) $ 16.4 million
• Pension Reserve Fund $ 3.1 million
• Capital Improvement Fund $ 4.4 million
• Unassigned Fund Balance $11.4 million
• Capital Replacement Funds $15.6 million
General Reserves
• Water Utility Operating Fund
• FY 2024-25 total budgeted expenditures exceed the estimated revenues by $2.1 million
• 96% of City’s water supply is purchased from the San Diego County Water Authority (SDCWA)
• Annual cost increases for water purchased from SDCWA have exceeded what was projected with the current four-year rate plan
• January 2025 cost increase is expected to be 16% - 22% • Staff is currently working with the City’s rate consultant to bring forward to the City Council in the next few months a potential pass-through adjustment to the water rates to reflect SDCWA and SDG&E cost increases
• FY 2024-25 budget shortfall can be covered with existing reserves (within the reserve policy) but is not structurally sustainable going forward Water Utility Funds
Purpose:
The purpose of the Capital Improvement Program
(CIP) is to plan and implement those Capital
Improvements that the City Council determines
to be most important for maintaining the City’s
infrastructure and long-term quality of life for the
community of Poway.
FY 2024
-
25 Capital Improvement Program
Completed Projects
Swim Center Artificial Turf Installation
FY 2021-22 Annual CMP Repair/Replace
Espola Road Safety Improvements – Phase 2
FY 2021-22 Annual Trash Capture Program
FY 2022-23 Street Overlay
Fire Station 1 Interior Stairwell Project
FY 2023-24 Citywide Striping Project
FY 2023-24 Street Maintenance Project
Community Park & Starridge Park Pathway Extension
FY 2022-23 ADA Barrier Removal CDBG (Community Park
Restroom)
Caustic Soda Tank Rehabilitation
Lake Poway Upper Playground Renovation
Water Treatment Plant Security Upgrades
Xeriscaping at Poway Library
Completed Projects
Community Park Pathway Extension
CDBG ADA Barrier Removal
(Community Park Restroom)
Lake Poway Upper Playground Renov.
Caustic SodaT ank
Rehabilitation
Annual Trash Capture
Program
Fire Station 1 Stairwell
Streets – 8 Projects
Drainage – 4 Projects
Public Facilities – 41 Projects
Water – 14 Projects
Sewer – 9 Projects
76 Projects –T otal Funding $85.69 M
Capital Improvement Program
(Active and Proposed Projects)
Construction Cost Indexes (both national and California) continue to dramatically rise since 2020 while average number of bidders decline
Streets
Active Projects:
Traffic Signal Controller Upgrades $600,000
Neighborhood Sidewalks $500,000
Midland Road Safety Improvements $50,000
Poway Road Safety Improvements
FY 2023-24 Street Overlay
FY 2024-25 Proposed Project:
FY 2024-25 Street Maintenance $1,560,196
FY 2024-25 Citywide Striping $320,000
FY 2024-25 Street Overlay $1,653,091
Total FY 2024-25 Funding: $4,683,287
Annual Street Overlay Project
Drainage
Active Projects:
Corrugated Metal Pipe Replacement $300,000
Annual Trash Capture Program $130,000
Community Park Concrete Ribbon Drain
Channel Rehabilitation – Pomerado Channel $200,000
Total FY 2024-25 Funding: $630,000
Channel Rehabilitation – Pomerado Channel
TASSEL ROAD
POMERADO ROAD
FRAME ROAD
GLENOAK ROAD
VAUGHAN ROAD
HOLLAND ROAD
SHALLMAN STREET
POWERS ROAD
Community Park Concrete Ribbon
Drain Assessment
Public Facilities
Active Projects:
PCPA Facility Maintenance Design
PCPA Facility Electrical
Swim Center Lifeguard Door Replacement
Community Park Restroom
FY 2023-24 ADA Barrier Removal (Slack Street)
Silverset Shade Area
Zero Emission Vehicle Charging Infrastructure Study
Fire Training Tower Ozone System Replacement
Fire Training Tower Pump Repair
Workplace Safety Facility Improvement
Fiber Optic Interconnect Projects (Fire Station 3, OPP , Community Park, PCPA & PW Admin)
PCPA Roofing Replacement
Pool Circulation Pump Replacement
Public Facilities
FY 2024-25 Proposed Projects:
Fire Station 1 Indoor/Outdoor Gym $30,000
Fire Station 2 Overhead Flashing Beacon $120,000
Fire Station 2 Gym Structure $220,000
Convection Ovens & Exhaust Hood at Cafagna Center $131,859 Community Park Sidewalk $100,000
Community Park Signage $165,000
Shelter for Old Poway Park Dumpster $182,500
Garden Road Roof Structure $385,000
Midland Road Fence Replacement $175,000
FY 2024-25 ADA Barrier Removal $163,729
Bike Park / Pump Track Feasibility Study $20,000
Public Facilities
FY 2024-25 Proposed Projects (cont.):
PCPA HVAC & Lobby ADA Improvements $1,292,929
PCPA Security Camera & Sound System $974,298
Public Facilities - Renovations
FY 2024-25 Proposed Projects:
Public Facilities Renovation – FY 25 General Maintenance $465,000 Public Facilities Renovation – FY 25 HVAC $253,000
Public Facilities Renovation – FY 25 Roofing $223,000 Public Facilities Renovation – FY 25 Painting $108,000 Public Facilities Renovation – FY 25 Flooring $210,000 Total FY 2024-25 Funding – Public Facilities Projects $ 5,219,315 Water
Active Projects:
Annual Water Valve Replacement
Clearwell Replacement
Poway Treated Water Facilities & Redundant Pipeline
SDCWA POW-5 Turnout & Flow Control Facility
Water Treatment Plant Filters 1-8 Upgrades
Motor Control Center Upgrades (PS No. 8 – 12)
Utility Security Enhancements
Water Treatment Plant Chemical Tank Rehabilitation
Emergency Interconnection #1 (Avenida La Valencia)
R-4 & R-7 Reservoir Upgrades
Washwater Tank No. 2 Rehab
Water
FY 2024-25 Proposed Projects:
Emergency Interconnection #2 (Poway/Springhurst) $170,000 Pump Station No. 13 Motor Control Center Upgrade $60,000 Annual Water Valve Replacement $198,000
Water Treatment Plant Chemical Tank Rehabilitation $250,000 Emergency Interconnection #1 (Avenida La Valencia) $625,000 Total FY 2024-25 Funding: $1,303,000
Sewer
Active Projects:
Annual Sewer Line Repair/Replace $344,611
Annual Sewer Manhole Rehabilitation $198,314
Butterfield Trail Sewer Upsize
Treatment Plant Sludge Discharge Study
Camino Del Valle Lift Station Upgrades PDR
Camino Del Valle Lift Station (LS3) MCC Rebuild PDR
Wastewater Collection System Infiltration & Inflow Study FY 2024-25 Proposed Projects:
Old Coach Lift Station Capacity Analysis & Upgrade $325,000 Powers Road Sewer Replacement Design $100,000
Total FY 2024-25 Funding: $967,925
FY 2024-25 CIP Project Funding
Streets $4,683,287
Drainage $630,000
Public Facilities $5,219,315
Water $1,303,000
Sewer $967,925
Total FY 2024-25 CIP Funding: $12,803,527
• Budget Review Committee meetings
• April 24
• BRC mission & charter, budget process overview, economic update • May 1
• Department presentations, review of prior BRC recommendations • May 8
• Budget document review
• May 22
• Budget document discussion, drafting of report to City Council Budget Review Committee
Public Comment and
City Council Discussion
• Wins
• Poway is fiscally sound – strong reserves, short and long-term planning • Budget focuses on key quality of life factors (i.e. public safety, maintenance) • Recreational amenities and programming
• Issues
• Impacts of recruitment and retention of employees on organizational priorities • Long-term funding solution is needed for landscape maintenance districts • Suggestions
• Provided ideas to improve readability of the budget document • Highlight significant year-over-year changes
• Recognition and Thanks
Budget Review Committee Report To City Council