PROPOSED
FISCAL YEAR 2025
-
26 OPERATING BUDGET &
CAPITAL IMPROVEMENT
PROGRAM INCLUDING
TRANSNET PROJECT LIST
ADOPTION
JUNE 17, 2025
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:
• Pension obligation bonds
• Five-year agreement with SD County Sheriff’s Office
• 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 (includes CAP findings) • Mitigation, impact, and in-lieu fee study (includes CAP findings) • Budgetary impacts from:
• Continued inflation
• Potential tariff impacts
Budget Overview
Budget Overview
Expenditures (and other uses) by Fund (in millions)
Fiscal Year 2025-26
Operating Non-
Operating Total
General (Unrestricted) $ 63.74 $ 12.20 $ 76.24
Water (Enterprise) 37.10 10.70 47.80
Wastewater (Enterprise) 12.20 4.42 16.62
Capital Replacement (Special Purpose) 3.50 0.23 3.73
Streets (Special Purpose) 1.80 5.74 7.54
Special Districts (Special Purpose) 3.53 0.15 3.68
Pension Reserve (Reserve) 1.95 0.00 1.95
Drainage (Special Purpose) 1.47 1.56 3.03
Debt Service/Other 0.19 8.03 8.22
TOTAL (ALL FUNDS)
$125.48
$43.03
$168.51
General Fund
Proposed Budget Summary
Fiscal Year 2025-26
Operating Revenue $71,937,847
Transfers In 847,600
T otal Revenue $72,785,447
Operating Expenditures1 $63,740,073
Transfers Out 9,824,506
Transfers Out to Reserve Funds 1,806,408
Capital Projects 20,000
T otal Expenditures and Other Uses $76,238,587
Net Activity ($3,453,140)
1 Includes $1.76 million Los Penasquitos Lagoon restoration cost share funded from the unassigned fund balance
General Fund Revenues
General Fund Revenues
Fiscal Year 2025-26
$72.8 million
Property Taxes
$32.5m | 45%
$17.0 | 23%
Sales Taxes
$4.8m | 7%
Community Services
Fees
$2.1m | 3%
Development Services
Fees
Franchise Fees
$2.9m | 4%
Fire &
Ambulance Fees
$3.8m | 5%
$5.9m | 8%
Interest
Transfers In,
Other
$2.8m | 4%
$0.9m | 1%
TOT
General Fund Expenditures
General Fund Expenditures
Fiscal Year 2022-23
Fire Department
$17.2m | 25%
$16.3m | 23%
Law Enforcement
Community Services +
Parks Maintenance
$13.4m | 19%
$5.1m | 7%
General/Admin.
$7.5m | 11%
Development
Services & Housing
Non-operating** (Debt,
Other Transfers)
$6.0m | 9%
Public Works
(less Parks
Maint.)
$4.2m | 6%
General Fund Expenditures
and Other Uses
Fiscal Year 2025-26
$76.2 million
**2012 Refunding Certificate of
Participation Payoff
$6.2m
• Long-term fiscal stability = sound Council guidance + staff fiscal prudence
• Fully fund operations + robust Capital Improvement Program • Cash financed = no new debt service costs
• Meeting General Fund Reserve Policy requirements
• Sensible department requests = able to fund enhancements • Lowest sales tax rate in the County!
• Long-term fiscal health one-time use of General Fund
unassigned fund balance
City Fiscal Health
• 2012 Refunding Certificate of Participation Payoff $6.2m of unassigned General Fund, fund balance
• Saves City nearly $800K in interest costs avoidance versus 2033 payoff
• Maintain debt capacity and favorable credit rating
• Poway Financial Policy and Best practice = cannot and should not use to pay enterprise fund costs (water and sewer)
• “Enterprise funds will not be subsidized by the General Fund” One
-
Time Debt Retirement
• Maintains current authorized staffing levels
• Addition of 0.75 full time equivalent positions (PCPA) • Total authorized staffing = 240.98 full time equivalent positions • Reclassifications
• Reclassify and fund long vacant Management Analyst position at Sr.
Management Analyst level (CMO)
• Recreation Leader 1 to Recreation Specialist –Gyms (CSD) • 1.0 Water Treatment Plant Operator to Lead Water Treatment Plant Operator • GIS Analyst to GIS Administrator (FIN)
• 1.0 Senior Accounting Technician to Payroll Analyst (FIN) Personnel Revisions
• Public Works:
• WTP Influent Flow Meter Replacement
• Green Valley Open Space Maintenance
• Concrete Repairs at City Parks
• Poway entrance sign rehabilitation
• Unfunded mandate compliance – water use and organics recycling • Other notable items include:
• Fabrication and radio installation for Type 1 Fire Engines (2) • Defensible Space Mailer expansion
• Mitigation, In-lieu, and Impact fee study
• Congregate Older Adult Meal Program Expansion
• Lake Poway Catfish Restock (increased frequency)
New Programs / Expenditure Requests
• Reserve balances provide resources for future projects and unforeseen needs that may arise
• General Fund:
• Revenue Volatility Reserve Fund (10%) $ 6.0 million
• Expenditure Volatility Reserve Fund (5%) $ 3.0 million • Extreme Events Reserve Fund (30%) $ 16.9 million
• Pension Reserve Fund $ 3.1 million
• Capital Improvement Fund $ 3.4 million
• Unassigned Fund Balance $17.2 million
• Capital Replacement Funds $18.0 million
General Reserves
• Water Utility Operating Fund
• FY 2025-26 total budgeted expenditures exceed the estimated revenues by $1.9 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 2026 cost increase is expected to be 10.4% - 12% • FY 2025-26 budget shortfall can be covered with existing reserves (within the reserve policy) but is not structurally sustainable going forward • Staff is currently working with the City’s rate consultant to bring forward updates to water service rates to ensure cost recovery (i.e. rate revenue) is in alignment with the cost of providing those services (i.e. City expenses)
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 2025
-
26 Capital Improvement Program
Completed Projects
FY 2023-24 ADA Barrier Removal
Washwater Tank Number 2 Upgrades
Poway Road Safety Improvements
Fire Training Tower Pump and Ozone Replacement
Midland Road Safety Improvements
FY 2023-24 Street Overlay
PCPA Roof Replacement
FY 2022-23 Traffic Signal Controller Upgrades
FY 2024-25 Citywide Striping
FY 2024-25 Street Maintenance
Fire Station 1 Indoor/Outdoor Gym
Neighborhood Sidewalks (Powers Road)
FY 2023-24 Water Valve Replacement
Lifeguard Door Replacement
Completed Projects
Midland Road Safety
Improvements
Washwater Ta n k N o. 2
Poway Road Safety
Improvements
PCPA Roof
Fire Training T ower
Pump & Ozone
ReplacementTraffic Signal
Controller Upgrades
Water Valve Replacement
Neighborhood Sidewalk
(Powers Road)
Streets – 9 Projects
Drainage – 4 Projects
Public Facilities – 43 Projects
Water – 13 Projects
Sewer – 9 Projects
78 Projects – T otal Funding $100.98 MIL
Capital Improvement Program
Streets
Active Projects:
Traffic Signal Controller Upgrades $282,300 Neighborhood Sidewalks
FY 2024-25 Street Overlay
FY 25-26 Proposed Project:
FY 2025-26 Street Maintenance $1,812,765 FY 2025-26 Citywide Striping $500,000 FY 2025-26 Street Overlay $2,367,794
ATMS for Arterials $500,000
ATMS for Collector Streets $500,000
Transparity Maintenance $7,300
Total FY 25-26 Funding: $6,020,159
Annual Pavement Management Program
Streets
Active Projects:
Traffic Signal Controller Upgrades $282,300 Neighborhood Sidewalks
FY 2024-25 Street Overlay
FY 25-26 Proposed Project:
FY 2025-26 Street Maintenance $1,812,765 FY 2025-26 Citywide Striping $500,000 FY 2025-26 Street Overlay $2,367,794
ATMS for Arterials $500,000
ATMS for Collector Streets $500,000
Transparity Maintenance $7,300
Total FY 25-26 Funding: $6,020,159
Drainage
Active Projects:
Annual Corrugated Metal Pipe Replacement $300,000 Annual Channel Rehabilitation $150,000
Annual Trash Capture Program $130,000
Community Park Concrete Ribbon Drain $1,099,000 Total FY 25-26 Funding: $1,679,000
Annual Channel Rehabilitation – Allbrook Street & Floral Avenue Community Park Ribbon Drain
Public Facilities
Active Projects:
PCPA Facility Maintenance Design
PCPA HVAC Controls Replacement
PCPA Sound System
PCPA Facility Electrical
PCPA Lobby ADA Improvements
PCPA Security Camera
Silverset Shade Area
Zero Emission Vehicle Charging Infrastructure Study
Workplace Safety Facility Improvement $500,000
Fiber Optic Interconnect Projects (Fire Station 3, OPP, Community Park, PCPA & PW Admin) Fire Station 2 Overhead Flashing Beacon
Fire Station 2 Gym Structure
Convection Ovens & Exhaust Hood at Cafagna Center
Community Park Sidewalk
Community Park Signage
Bike Park / Pump Track Study
Garden Road Restroom Roof Structure
Midland Road Fence Replacement
FY 2024-25 ADA Barrier Removal
Old Poway Park Dumpster Shelter
Swim Center Pool Circulation Pump Replacement
Community Park Restroom $500,000
Pool Circulation
Pump
Replacement
Community
Park Restroom
Public Facilities
FY 2025-26 Proposed Projects:
PCPA Elevator Rehab and ADA Improvements $356,700
PCPA Sewer Replacement $440,000
Lake Poway Concessions Door Replacement & Relocation $41,500 Old Poway Park Boardwalk Replacement $715,043 Community Park Fence Replacement $1,791,000 Old Poway Park Concrete Repairs $140,500
Garden Road Park & Aubrey Park Playground Resurfacing $374,325 FY 2025-26 ADA Barrier Removal $130,500
Pickleball Courts $500,000
PCPA FY 26 Maintenance Projects $1,147,000 PCPA Orchestra Safety Net $28,600
Swim Center Media Filter Replacement $115,000
Pool Loading Bay Bumper Replacement and Ladder $29,300
Subtotal FY 2025-26 Funding for Public Facilities: $6,809,468 PCPA Orchestra Safety Net
Public Facilities - Renovations
FY 2024-25 Proposed Projects:
Poway Oaks Neighborhood Park Playground Renovation $373,700 Public Facilities Renovation – FY 26 General Maintenance $340,000 Public Facilities Renovation – FY 26 HVAC $270,000 Public Facilities Renovation – FY 26 Roofing $170,000 Public Facilities Renovation – FY 26 Painting $120,000 Public Facilities Renovation – FY 26 Concrete $245,000 Public Facilities Renovation – FY 26 Old Poway Park Lighting $100,000 Subtotal FY 2025-26 Funding for Public Facilities Renovations: $1,618,700 TOTAL FY 2025-26 Funding – Public Facilities Projects $8,428,168 Water
Active Projects:
Annual Water Valve Replacement $315,000
R-4 & R-7 Reservoir Rehabilitation
Water Treatment Plant Filters 1-8 Upgrades $700,000 Motor Control Center Upgrades (PS No. 8 – 13) $400,000 Water Treatment Plant Chemical Tank Rehabilitation
Water Infrastructure Program
Poway Treated Water Facilities & Redundant Pipeline $500,000 Emergency Interconnection #1 (Avenida La Valencia) $250,000 FY 2025-26 Proposed Projects:
Water Master Plan Update and Implementation $1,500,000 Stone Canyon Steel Watermain Replacement $1,700,000 Water Treatment Plant Groundwater Investigation $150,000 Emergency Interconnection #2 (Poway/Springhurst) $1,500,000 Total FY 2025-26 Funding: $7,015,000
R-4 & R-7 Reservoir Upgrades
Before During Construction
Poway Water Infrastructure Improvement Program
Three Phase Program
Clearwell
Bypass – In Operation
Clearwell
Replacement – In
Construction
Treated Water
Facilities – In Design
Earthwork and
Retaining Walls
Storm Drains
Vaults
Pipelines
North Tank
Pad/Floor
South Tank
Pad/Floor
Interconnections with the City of San Diego
• Emergency Interconnection No. 1 at
Avenida La Valencia and Bridle Trail –
Design Phase
• Emergency Interconnection No. 2 on
Poway Road from Springhurst Drive to
Francine Terrace – Request for Proposal
Phase
Related Projects
Sewer
Active Projects:
Annual Sewer Line Repair/Replace $358,740
Annual Sewer Manhole Rehabilitation $206,445
Butterfield Trail Sewer Upsize
Treatment Plant Sludge Discharge Study
Camino Del Valle Lift Station Upgrades PDR $1,155,000 Camino Del Valle Lift Station (LS3) MCC Rebuild PDR
Old Coach Lift Station Capacity Analysis & Upgrade
Powers Road Sewer Replacement Design $1,600,000 FY 2025-26 Proposed Projects:
Sewer Master Plan Update and Implementation $1,425,000 Total FY 2025-26 Funding: $4,745,185 FY 2025-26 CIP Project Funding
Streets $6,020,159 Drainage $1,679,000 Public Facilities: $8,428,168 Water $7,015,000 Sewer $4,745,185
Total FY 2025-26 CIP Funding: $27,887,512
Recognition and thanks
Public Comment and
City Council Discussion