Project Estimate
County Cost-Share and/or
Prop 4 Funding
Preliminary Engineering
Construction
TOTAL ESTIMATE
Funding Source(s)
Operating Budget Impact: Following construction, O&M will cost approximately $320,000 per year, increasing the annual cost by $170,000 over the current annual operating budget for City’s share.
Fund Category Project Type
Capital Improvement Facilities Public Alert Warning System CIP Capital Improvement Facilities Community Center - Exterior Repainting Maint General Facilities Major Facilities Maintenance Program Maint Capital Improvement Parks and Beaches Aquatics Center Water Play Structure Replacement CIP Capital Improvement Parks and Beaches Jim Johnson Sports Park Artificial Turf Replacement CIP Capital Improvement Parks and Beaches LPVH Three Artificial Fields Synthetic Turf Replacement (Field 1) CIP Capital Improvement Parks and Beaches Rancho San Clemente Park Exercise Equip Repl CIP Capital Improvement Parks and Beaches Sand Replenishment Maint Capital Improvement Streets and Medians Downtown Alley Lighting Replacement CIP Capital Improvement Streets and Medians Downtown Paseo Plan CIP Gas Tax Streets and Medians Arterial Street Improvement Program CIP Gas Tax Streets and Medians As-Needed Street Improvement Program CIP Gas Tax Streets and Medians Local Street Improvement Program CIP General Streets and Medians Major Street Maintenance Program Maint General Streets and Medians Pavement Preservation Program Maint General Streets and Medians Sidewalk Repair & Maintenance Maint RCFPP Streets and Medians Avenida Pico Class I Bike/Pedestrian Path - Viera Cruz to Frontera CIP RCFPP Streets and Medians Intersection Improvements: AVH & La Pata CIP RCFPP Streets and Medians Intersection Improvements: Pico & La Pata CIP Streets Streets and Medians Alley/Parking Lot Rehabilitation Program CIP Streets Streets and Medians Street Rehabilitation Program CIP Sewer Depreciation Utilities Primary Clarifier 1, 2 & 3 Rehabilitation CIP Sewer Depreciation Utilities Secondary Clarifier 1, 2 & 3 Rehabilitation CIP Sewer Depreciation Utilities Secondary Clarifier 4, 5 & 6 Rehabilitation CIP Sewer Depreciation Utilities WRP Electrical System Replacement CIP Sewer Depreciation Utilities WRP Odor Control Systems Replacement CIP Sewer Depreciation Utilities Main Pump Station Forcemain Valve Replacement CIP Water Depreciation Utilities Blanco Pump Station Rehabilitation CIP Water Depreciation Utilities Del Cerro Pressure Reducing Station Rehabilitation CIP Water Depreciation Utilities La Pata Recycled Waterline Rehabilitation CIP Water Depreciation Utilities La Pata, Esmarca, Patricia Check Valves CIP Water Depreciation Utilities La Quinta Pressure Reducting Station Rehabilitation CIP Water Depreciation Utilities Los Olivos Pressure Reducing Station CIP Water Depreciation Utilities Potable Water Reservoir Improvement Projects CIP Water Depreciation Utilities Pump Station Bypass Pump Connections CIP Water Depreciation Utilities Recycled Water Storage Bay Rehabilitation CIP Water Depreciation Utilities Reservoir No. 5A Replacement CIP Water Depreciation Utilities Reservoir No. 6 Removal CIP Water Depreciation Utilities Well No. 8 Enclosure CIP
Golf Improvement Parks and Beaches Driving Range Fence Extension CIP Golf Improvement Parks and Beaches Golf Course Bunker Renovations CIP Storm Drain Water Quality Caballeros and Avenida Patero de Oro Storm Drain Improvements CIP Storm Drain Water Quality Citywide Catch Basins Rehabilitation Maint Storm Drain Water Quality Pier Bowl Drainage Study & Improvements CIP Storm Drain Water Quality Storm Drain Improvements - Victoria and Monterey Lane CIP Storm Drain Water Quality Storm Drain Improvements - Northwest of Ave. Vaquero & Calle Vista Torito CIP Storm Drain Water Quality Storm Drain Improvements - Intersection of W. Ave. Roma & S. Ola Vista CIP Storm Drain Water Quality Storm Drain Improvements - Vista Cayenta & Ave. Buena Suerte CIP Capital Improvement Plan Projects
Summary of Future Projects - By Category
The following table lists various projects planned in future years, however these are subject to various timelines, staffing, and resources.
Projects in some cases are dependent on available resources, including grant funding and development fees.
Capital Improvement Program
The Carry Forward section is pending on the
FY 2025-26 year end data. Information will be
provided as part of year end document.
Capital Improvement Program
The Carry Forward section is pending on the
FY 2025-26 year end data.
(Second page)
Capital Improvement Program
The Carry Forward section is pending on the
FY 2025-26 year end data.
(Third page)
Appropriations Limit
Appropriations Limit
State Proposition 4, commonly known as the Gann Initiative, was approved by California Voters in November 1979.
Proposition 4 created Article XIIIB of the California State Constitution, which places limits on the amount of revenue that can be spent by government agencies. This is referred to as the Gann Appropriation Limit or Gann Limit.
A subsequent related State initiative, Proposition 111, was approved by the State’s voters in June 1990. This legislation provided new adjustment formulas to make the Gann Limit more responsive to local growth issues and to address concerns regarding the accountability of local governments in adopting their limits. Prior to each fiscal year, city councils must adopt by resolution the Gann Appropriation Limit for the city for the upcoming year. In addition, cities are required to conduct a review of their limits during annual financial audits.
The appropriations limitation imposed by Propositions 4 and 111 creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The limit is based on actual appropriations during the 1978-79 fiscal year and is increased each year using population and inflation growth factors. Only revenues that are classified as “proceeds of taxes” are subject to the limit. The use of “non-tax proceeds” (user fees, rental income, franchise fees, Gas Tax revenue) is not restricted.
During any fiscal year, a city may not appropriate any proceeds of taxes it receives in excess of its established limit.
Excess funds received in any given year may be carried into the subsequent year for use if the city is below its limit for that year. Any excess funds remaining after the second year would be required to be returned to local taxpayers by reducing tax rates or fees. As an alternative, a majority of the voters may approve an “override” to increase the city’s appropriation limits.
The Gann Limit had little impact in the early 1980s as a result of the high rate of inflation during that period.
Because the appropriations limit for most cities increased faster than actual revenue growth, cities were generally below their limits. This trend changed during the mid-1980s, as exemplified by the State of California’s $1.1 billion refund to taxpayers in 1987 when it collected revenues in excess of its Limit. The Limit also served as the major barrier to increasing taxes on gasoline in the late 1980s. In recent years, the trend has reversed again for most cities. As the rate of revenue growth slows and the growth factors, especially population, increase at a steady rate, most cities, including San Clemente, are experiencing comfortable gaps between their appropriations limits and their actual appropriations.
Appropriations Limit
To be replaced with Appropriations Limit Graph upon receipt of necessary data from State of California, typically received in mid May.
Debt Summary
Debt Summary
The debt summary section of the budget is intended to provide an overview of the City’s debt capacity and provide a listing of outstanding debt, including bond repayment schedules.
The City of San Clemente does not expect to incur additional indebtedness for general government operations over the next five years. All capital improvements will be paid on a pay-as-you-go basis (utilizing fund balances) and through the use of mitigation and developer fees. The following narratives summarize the City’s Fiscal and Debt Policies, Bond Ratings, Debt Capacity, Outstanding Debt, Debt Repayment Schedules, and Other Debt.
Fiscal and Debt Policies
The City Council adopted Fiscal Policy provides guidance pertaining to the issuance of both short-term and long-term debt. As indicated in the policy, the City prefers to use special assessment, revenue, or other self-supporting bonds instead of general obligation bonds. Additionally, the City is required to confine long-term borrowing to capital improvements that cannot be funded from current revenues.
The City has also adopted a Debt Policy that established the parameters for issuing and managing debt issued by the City and component units. The policy provides guidance to the City Council so as not to exceed acceptable levels of indebtedness and risk; directs staff on objectives to be achieved, both before bonds are sold and for the ongoing management of the debt program; facilitates the debt issuance process by making important decisions ahead of time; and promotes objectivity in decision making and limits the role of political influence. Council policies have been established to ensure that debt payments are made in a timely manner.
Bond Ratings
The City of San Clemente’s current bond rating from Standard & Poor’s = AAA.
Debt Capacity
The City has a legal debt limitation not to exceed 3.75% of the total assessed valuation of taxable property within City boundaries. The City’s legal debt margin is indicated in the table below:
General Obligation Bonds Outstanding June 30, 2026 None Computation of Legal Debt Margin
for Fiscal Year Ending June 30, 2026
Total assessed value
$ 24,184,946,416
Debt Limit
(3.75% of total assessed value) $ 906,935,491
Outstanding City Debt
The following is a summary of both external and internal City debt:
State Revolving Fund (SRF) Loan
In June 2013, the City of San Clemente entered into a loan agreement with the California State Water Resources Control Board under a State Revolving Fund loan program to finance the Recycled Water System Expansion Project construction. The project included a reclamation plant expansion, a pump station, pipelines, and the conversion of a recycled water reservoir. The $14,370,000 approved loan amount has an interest rate of 2.2% payable with the loan to be paid over a period of 20 years.
Debt Summary
Interest during the construction period was added to the principal amount of the loan. Principal and interest payments commenced in June 2015 upon the project completion, with repayment secured by the Water Fund net revenues.
Water Fund Debt
Date
Issued Amount Issued Outstanding June 30, 2026
Outstanding
June 30, 2027
Outstanding
June 30, 2028
State Revolving Fund (SRF) Loan 6/2015 $14,494,395 $ 7,281,259 $ 6,540,844 $ 5,784,141 The amortization schedule for the SRF loan follows:
Fiscal Year Interest Principal Outstanding
$14,494,395
2015-16 $ 631,358 $ 269,244 13,863,036
2016-17 595,616 304,987 13,267,421
2017-18 608,719 291,883 12,658,702
2018-19 622,111 278,491 12,036,591
2019-20 635,797 264,805 11,400,793
2020-21 649,785 250,817 10,751,008
2021-22 664,080 236,522 10,086,928
2022-23 678,690 221,912 9,408,238
2023-24 693,621 206,981 8,714,616
2024-25 708,881 191,722 8,005,736
2025-26 724,476 176,126 7,281,259
2026-27 740,415 160,188 6,540,844
2027-28 756,704 143,899 5,784,141
2028-29 773,351 127,251 5,010,789
2029-30 790,365 110,237 4,220,424
2030-31 807,753 92,849 3,412,671
2031-32 825,524 75,079 2,587,147
2032-33 843,685 56,917 1,743,462
2033-34 862,246 38,356 881,216
2034-35 881,216 19,387 -0-
$ 14,494,395 $ 3,517,655
Golf Operating Fund
In June 2007, the Golf Course Clubhouse project, totaling $5.3 million, was funded from Golf Course Improvement Reserve fund balances and an interim Interfund Loan Agreement in the amount of $2,500,000. In June 2012, the interim loan was converted into two long term loans; a five-year, fully amortized $750,000 Interfund Loan with the Workers’ Compensation Fund, and a $1.75 million interest-only loan, bearing a 2% rate, from the Golf Depreciation and Capital Improvement Reserves.
The Workers’ Compensation loan was fully paid in FY 2016-2017.
Principal repayments on the remaining loan balance were not made during FY 2020-2021 to improve the Golf Operating Fund net working capital balance. In FY 2021-2022, the $1.75 million loan was renewed and initial principal repayment was $200,000 was paid on June 30th. Principal repayments were considered annually based on available resources. The full repayment of the Golf Course loan was made from available Golf Course Operating funds in FY 2024-25.
Golf Operating Fund Debt
Date
Issued
Amount
Issued
Outstanding
June 30, 2026
Golf Depreciation/Capital Reserves Loan 6/2012 $1,750,000 $ -0- .
Debt Summary
Former Redevelopment Agency
In July 1998, the RDA refinanced outstanding debt used to purchase the Casa Romantica historical site. Additionally, financing was included for two major capital projects and to fund operating deficits in the RDA. The total financing amounted to $3,849,000. In July, 2002 the existing interfund loans from the Sewer Depreciation Reserve and the General Liability SelfInsurance Fund were consolidated and repaid with a new interfund loan from the General Fund. The new loan amounted to $3,420,690, with structured annual payments.
On February 1, 2012 the RDA was dissolved and payments on the outstanding loan balance ceased. In compliance with State Law, the City obtained a Finding of Completion related to the dissolution process which authorized the reinstatement of the loan balance upon the approval of the Successor Agency board.
The Agency filed a Last and Final Recommended Obligation Payment Schedule (ROPS) in September 2016 and received a letter on November 1, 2016 from the California Department of Finance approving the Agency’s Last and Final ROPS. The only outstanding obligation was the repayment of the loan back to the City of San Clemente’s General Fund. The balance outstanding on the loan was revised and annual repayments are being made from Redevelopment Property Tax Trust Fund (RPTTF) amounts. Repayments on the loan are listed in a table below.
Repayment Schedule
RPTTF distribution ROPS (Period A) ROPS (Period B) Annual Total 2017-18 $ 137,419 $ 156,408 $ 293,827
2018-19 140,547 159,537 300,084
2019-20 143,738 162,727 306,465
2020-21 146,992 165,982 312,974
2021-22 169,302 169,301 338,603
2022-23 172,688 172,687 345,375
2023-24 176,142 176,141 352,283
2024-25 179,665 98,950 278,615
This debt was fully repaid at June 30, 2026 and the former Redevelopment Agency’s Successor Agency has been fully dissolved.
RDA Debt
Date
Issued Amount Issued
Outstanding
June 30, 2026
Loan from General Fund 7/2002 $3,420,690 $0
Debt Summary
Other Debt - Assessment Districts and Community Facility District Debt The information below provides a general description of the Assessment Districts and the related debt and the debt outstanding. These obligations are not direct obligations of the City, and the data is provided for informational purposes only.
Re-Assessment District No. 2016-1, refinanced issued in July, 2017 in the amount of $9,615,000 defeased and redeemed the remaining outstanding bonds of the City of San Clemente Public Financing Authority Reassessment Refunding Revenue Bonds.
The debt was originally related to the Assessment District No. 98-1 Limited Obligation Improvement Bonds which were used to finance public improvements (wastewater) for the Forster Ranch development.
Community Facilities District No. 99-1 of the City of San Clemente 2021 Special Tax Refunding Bonds were issued for the purpose of refunding the District’s outstanding 2011 Special Tax Refunding Bonds. The bonds were refunded on July 21, 2021 in the amount of $2,520,000. Community Facilities District 99-1 (Plaza Pacifica), issued in August 2011 in the amount of $5,005,000 to refund outstanding debt of the December, 1999 issue that was issued in the amount of $5,755,000 to finance construction of various public improvements within the district, commonly referred to as Plaza Pacifica. The Community Facilities District 99-1 (Plaza Pacifica) was refinanced at the beginning of FY 2021-22 to achieve annual savings to the property owners.
Community Facilities District 2006-1 (Marblehead Coastal), issued in January 2016 in the amount of $55,490,000 to finance construction of various public improvements within the district, commonly referred to as Marblehead at Sea Summit. The bonds were refunded in June 2025 in the amount of $43,330,000 to achieve annual savings to the property owners. The revised amounts for the outstanding debt is in the following table.
Assessment District Debt
Date
Issued
Amount
Issued
Outstanding
June 30, 2026
Outstanding
June 30, 2027
Outstanding
June 30, 2028
Re-Assessment District 2016-1
Improvement & Sewer Refinancing 7/2017 $ 9,615,000 $ 2,620,000 $ 1,765,000 $ 890,000 Community Facilities District No. 99-1
of the City of San Clemente 2021
Special Tax Refunding Bonds
7/2021 $ 2,520,000 $ 1,520,000 $ 1,235,000 $ 945,000
Community Facilities District 2006-1
(Marblehead Coastal) 6/2025 $ 43,330,000 $ 43,330,000 $ 42,620,000 $ 41,810,000
Fiscal Policy
Objective
The City’s adopted Fiscal Policy is reviewed in conjunction with the Budget to determine appropriate changes, additions or deletions.
Background
A biennial comprehensive review of the City Council’s fiscal policy is conducted as part of the Budget Plan development process. This review takes into consideration proposed policy updates and identifies opportunities to refine or revise existing fiscal policies in response to evolving conditions. The goal is to ensure that the City’s financial framework remains adaptable, responsible and aligned with current and future needs.
The Fiscal Policy statements are presented by major categories, which include:
Core Values of Financial Sustainability
Operating Budget
Revenue
Expenditure
Utility Rates and Fees
Capital Improvements
Short Term Debt
Long Term Debt
Fund Balance and Reserves
Investment Policies
Accounting, Auditing, and Financial
Reporting
Long Term Financial
Risk Financing
Pension
The unmodified policy is provided in this Section. Based on a review staff is proposing changes to the Fiscal Policy. The summary provides an analysis for the proposed changes, its intended purpose, and specific policy revisions required. If approved these changes will be in the Adopted Budget.
Staff Summary and Recommendation:
Analysis:
The Capital Reserve fund’s name has been changed to Capital Improvement Fund and will separate Capital Improvement Program activity related to the General Fund. This fund is comprised of the Accrued Leave Reserve, the Capital Equipment Reserve, the Facilities Maintenance Reserve, and the Park Asset Reserve. The Accrued Leave Reserve is being segregated in the General Fund, since it is not capital related.
The Capital Improvement Fund allows for a separation of capital activity previously funded in the General Fund. In order to provide a funding mechanism for this separate capital fund, staff proposes a process to transfer excess unassigned fund balance achieved through budgetary savings and revenue overages to be placed into the Capital Improvement Fund or be utilized to meet other funding needs. This process will be done annually through the annual year-end financial close process. This new policy replaces existing policies for the independent reserves, which will be removed.
Fiscal Policy
Policy Revision - Add the following policy:
“The City shall target an unassigned fund balance of approximately 2% of operating costs and allocate excess fund balance during the annual General Fund closing process to fund capital projects or provide one-time funding for specified uses. The Capital Improvement Fund will be used for long-term capital projects, major infrastructure improvements, emergency capital needs, and other non-recurring capital maintenance. The Capital Improvement Fund will have a minimum fund balance of $7 million to address unforeseen capital activity. This process also may be an opportunity to allocate additional funds to the Section 115 Trust” Policy Revision - Remove the following policies:
“The City will establish a Capital Equipment Replacement Reserve and a Facilities Maintenance Capital Asset Reserve for the accumulation of funds for the replacement of worn and obsolete equipment other than vehicles and for costs associated with the maintenance of all City facilities.
These reserves will be maintained at a level at least equal to the projected five-year capital asset replacement and maintenance costs.”
“The City will establish a Park Asset Replacement Reserve with a target of $1.2 million for the replacement of park assets in the future. The reserve balance will be reviewed annually and funded through one-time revenues or undesignated General Fund balance transfers, when available.”
Fiscal Policy
Core Values of Financial Sustainability
Financial stability – The City will create financial stability to provide the community with a consistent and adequate level of public services. The City will take a long-term approach to its finances by developing and maintaining longterm plans, carefully weighing the cost and benefits of development opportunities and adhering to sound debt, reserve and investment policies.
Quality of life and local economic vitality – The City will provide effective and efficient services to ensure a safe and healthy atmosphere for its residents, businesses and visitors, while preserving and enhancing its unique cultural and environmental attributes.
Accountability and Financial Planning – The City will institute financial planning that ensures City services are provided at the best value and that the services are in alignment with the needs and wants of the community.
Environmental and economic sustainability – The City’s financial strategy will support continued investment in the renovation and maintenance of physical infrastructure/facilities and in policies and programs that support a clean and healthy natural environment.
Transparency and engagement – The City will be accountable for producing value for the community by implementing planning and report mechanisms that make it clear how the City plans to use its resources to achieve the community vision. The City is committed to engaging the public as a partner in formulating plans and delivering services.
Fiscal Policy Statement Status
(6/30/2026)
Comments
Operating Budget Policies
The City will adopt a balanced budget by June 30 of each year. A balanced budget is defined as one in which total expenditures equal total revenue. An entity has a budget surplus if
expenditures are less than revenues. It has a budget deficit if expenditures are greater than revenues.
√
An annual base operating budget will be developed by verifying or conservatively projecting revenues and expenditures for the current and forthcoming fiscal year.
√
Current revenues will be sufficient to support current operating expenditures and a budgeted positive operating position will be maintained.
√
The City will annually review the General Fund operating position to determine if funds are available to operate and maintain future capital facilities. If funding is not available for operations and maintenance costs, the City will delay construction of the new facilities.
√
Fiscal Policy
Fiscal Policy Statement Status Comments
Revenue Policies
The City will try to maintain a diversified and stable revenue system to shelter it from short-term fluctuations in any one revenue source.
√
The City will estimate its annual revenues by an objective, analytical process utilizing trend, judgmental, and statistical analysis as appropriate.
√
All City Council-established General Fund User fees will be reviewed and adjusted annually as part of the budget process by each City department and the analysis with recommended changes will be provided to the City Council. The basis for adjustment will be the cost of providing services, inflationary impacts, or other budgetary factors as appropriate. User fees will be established to recover the full cost of services provided, except when the City Council determines that a subsidy from the General Fund is in the public interest.
√
One-time operating, capital, and reserve revenues will be used for one-time expenditures. Exceptions must be formally adopted by Council action and may only offset operating expenditures for a limited time period of less than five fiscal years.
√
The City will annually identify developer fees and permit charges received from “non-recurring” services performed in the processing of new development and use those funds to meet peak workload requirements.
√
Allocate one-third of total Transient Occupancy Tax dollars toward the unfunded pension liability.
√
Expenditure Policies
The purchase of new or replacement capital equipment with a value of $5,000 or more and with a minimum useful life of two years will require budget approval.
√
The City will annually project its equipment replacement and maintenance needs for the next five years and will update this projection each year. A maintenance and replacement schedule will be developed and followed.
√
Fiscal Policy
Fiscal Policy Statement Status Comments
Utility Rates and Fees Policies
The City will set fees and user charges for each utility fund at a level that fully supports the total direct and indirect cost of the activity.
Indirect costs include the cost of annual depreciation of capital assets and overhead charges.
√
Utility rates will be established for each of the next five years and this rate projection will be updated annually.
√
Capital Improvement Budget Policies
The City will make all capital improvements in accordance with an adopted capital improvement program and will include an annual six- year plan for capital improvements (CIP design, development, implementation, and operating and maintenance costs.) The first year of the six-year plan must be fully funded in the adopted budget. Projects that are not fully funded must be removed or delayed until adequate funding exists for design, construction, operating and maintenance.
√
Capital Improvement projects must project operating and maintenance costs for the five-year forecast period to ensure that future year budgets maintain a positive operating position. √
The Park Acquisition & Development Fund and other special development impact funds may only be used to fund facilities included in the Master Plan for City Facilities.
√
Short-Term Debt Policies
The City may use short-term debt to cover temporary or
emergency cash flow shortages. All short-term borrowing will be subject to Council approval by ordinance or resolution. √ The City may issue interfund loans to meet short-term cash flow needs. Short-term is defined as a period of one year or less.
Interfund loans will be permitted only if a specific source of repayment is identified within the “borrowing” fund. Excess funds must be available and the use of these funds will not impact the “lending” fund’s current operations. The prevailing interest rate, as established by the City Treasurer, will be paid to the lending fund.
Short-term interfund loans require Council approval.
√
Fiscal Policy
Fiscal Policy Statement Status Comments
Long-Term Debt Policies
The City will confine long-term borrowing to capital improvements that cannot be funded from current revenues. √
The City may issue long-term interfund loans to fund capital improvements. Interfund loans will be permitted only if a specific source of repayment is identified within the “borrowing” fund. Excess funds must be available and the use of these funds will not impact the “lending” fund’s long-term operations. Long-term interfund loans will be fully amortized (principal and interest included in payment). The prevailing interest rate and duration of the loan will be established by the City Treasurer. Principal and interest will be paid to the lending fund.
Long-term interfund loans require Council approval. Long-term interfund loans will be disclosed in the City’s annual Operating Budget. √
The City will establish and maintain a Debt Policy. √
The City will establish a restricted reserve in the Water Operating Fund equal to one year’s debt service on the State Revolving Loan. The purpose of this reserve will be to provide a debt reserve as required under the State Revolving Fund loan financing agreement. √
Fund Balance and Reserve Policies
The City will maintain emergency reserves equal to 18% of operating expenditures of the General Fund. The primary purpose of this reserve is to provide stability during a significant economic downturn, or to offset a significant one-time loss of revenue. The reserve exists in order to provide short-term funding to protect the City’s essential service programs and funding requirements or to provide for unanticipated or emergency expenditures that could not be reasonably foreseen during preparation of the budget.
√
The City will maintain an emergency reserve equal to 12% of operating expenses for Enterprise Funds. The primary purpose of these reserves is to protect the Funds during periods of economic downturn, other unanticipated expenses, or emergency expenses that could not be reasonably foreseen during preparation of the budget.
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√
√
Water
Sewer
Storm Drain
Golf
Solid Waste
The City will establish an account to accumulate funds to be used for payment of accrued employee benefits for terminated employees. The level of this reserve will be maintained at a level at least equal to projected costs for employees who are eligible for retirement. --
Fiscal Policy
Fiscal Policy Statement Status Comments
The City will establish a Capital Equipment Replacement reserve and a Facilities Maintenance Capital Asset reserve for accumulation of funds for the replacement or worn and obsolete equipment other than vehicles and for costs associated with the maintenance of all City facilities. These reserves will be maintained at a level at least equal to the projected five-year capital asset replacement and maintenance costs.
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√
The City will establish Water, Sewer, Storm Drain and Golf depreciation reserves for costs associated with the major maintenance and capital improvement costs included in the Enterprise Funds. The minimum reserve level shall be at a level equal to the projected three-year capital and major maintenance costs.
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Water
Sewer
Storm Drain
Golf
The City will establish a Golf Course Improvement reserve for costs associated with capital improvements budgeted in the Golf Course Fund.
The reserve will be maintained at a level at least equal to the projected three year costs.
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The City will establish a Park Asset Replacement Reserve with a target balance of $1.2 million for replacement of park assets in the future. The reserve balance will be reviewed annually and funded through one-time revenues or undesignated General Fund balance transfers, when available.
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The General Liability self-insurance reserve will be maintained at a level which, together with purchased insurance policies, adequately protects the City. The City will maintain a reserve of one times its annual insurance authority premium. In addition, the City will perform an annual analysis to document those claims which are not covered by the insurance pool to which the City belongs, and reserve an additional appropriate amount to pay for such uncovered claims.
√
General Liability Reserve
The Workers’ Compensation self-insurance reserve will be maintained at a level which, together with purchased insurance policies, adequately protects the City. The City will maintain a reserve of three times its self insurance retention for those claims covered by the insurance pool (of which the City is a member). In addition, the City will perform an annual analysis of past claims not covered by the insurance pool, and reserve an appropriate amount to pay for uncovered claims.
√ Workers Compensation
Reserve
The City will establish a Fleet Replacement Reserve for costs associated with the replacement of vehicles and other rolling stock (such as trailers, compressors or other equipment on wheels) as they become unserviceable, obsolete or reach a predetermined service life. The reserve will be maintained at a level at least equal to the projected fiveyear fleet replacement costs. √ Fleet Replacement Reserve
Fiscal Policy
Fiscal Policy Statement Status Comments
Investment Policies
The City Treasurer will annually submit an investment policy to the City Council for review and adoption. √
Accounting, Auditing & Financial Reporting Policies
The City’s accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles and standards of the government Accounting Standards Board. √
An annual audit will be performed by an independent public accounting firm with the subsequent issue of an official Annual Comprehensive Financial Report, including an audit opinion.
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A fixed asset system will be maintained to identify all City assets, their condition, historical cost, replacement value, and useful life.
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Quarterly financial, capital improvement program and investment reports will be submitted to the City Council and will be made available to the public.
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An annual revenue manual will be prepared after the close of the fiscal year. The manual will provide information on the revenue source, legal authorization, timing of receipts and historical collection over the last five-year period. Fee schedules or calculations will also be provided. √
Full and continuing disclosure will be provided in the general financial statements and bond representations.
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A good credit rating in the financial community will be maintained. √ Establish and maintain a formal compensation plan for all employee salary or wage ranges and maintain a formal salary schedule for every approved position title showing the current pay rate for each identified position. The salary schedule will be approved and adopted by the City Council and will be made publicly available.
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Establish a position control system to ensure that staffing levels are maintained at the levels approved by City Council. √
Fiscal Policy
Legend:
√ Budget complies with Fiscal Policy Standard
Fiscal Policy Standard is not met in Budget
Fiscal Policy Statement Status Comments
Long Term Financial Policies
Annually prepare a five year forecast that maintains the current level of services, including known changes that will occur during the forecast period. If the forecast does not depict a positive operating position in all five-years of the forecast, the City will strive to balance the operating budget for all years included in the five-year financial forecast. √
Annually evaluate trends from a budget-to-actual perspective and from a historical year-to-year perspective to identify areas where resources have been over allocated. This would improve the accuracy of revenue and expenditure forecast by eliminating the impact of recurring historical variances.
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Risk Financing Policies
The City will maintain adequate insurance coverage, pooled coverage, or self-insurance for general liability, property, errors and omissions, subsidence, automobile liability, workers’ compensation, and other identified loss exposures.
√
The City will maintain a risk financing strategy, which shall include an annual review of insurance policy limits, types of coverage, reserve requirements, and self-insurance limits, if applicable. √
Pension Policies
The required actuarial contributions shall be made to cover the current service cost and unfunded liabilities based on the actuarially determined contribution rate.
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Annually, review the City Pension plans funding levels and identify areas where funding may be utilized to target a funding ratio of 90% or higher for each of the City’s individual pension plans.
√
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources and evaluate departmental performance in meeting San Clemente’s Mission Statement. In this section, performance measures are presented by the City’s major departments and reflect operations of all City funds.
A summary by department of the performance measures to the Mission Statement focus is summarized in the table below. Performance measures assess workloads, efficiency and effectiveness in meeting the needs of the citizens of San Clemente.
Detailed performance measures are presented this section by Department.
Mission Statement Focus
DEPARTMENTS Safe/Healthy
Atmosphere
Responsible
Growth &
Preservation
LongTerm
Stability
Balanced
Community
General Government encompasses the City Manager, City Clerk, and Economic Development. Performance measures focus on providing information to citizens, citizen interaction and general oversight to ensure ongoing efficiency and effectiveness.
√ √ √ √
Finance and Administrative Services is comprised of Treasury, Finance, Human Resources, Risk Management, Fleet Management and Information Technology functions. Performance measures focus on financial accountability, workforce activity, risk services and technology demands to allow City activities to function. √
Public Safety includes Police and Fire contracted services and Marine Safety. Performance measures in this area address the timeliness and service levels related to ongoing public safety as well as public preventative and education services.
√
Community Development consists of Building, Planning, and Code Enforcement divisions. Performance measures address the implementation of the City’s vision through land development, housing, construction and code enforcement activities.
√ √ √
Public Works includes Administration, Engineering, Maintenance (City Facilities, Streets, Beaches and Parks) and their related infrastructure. √ √ √
Utilities includes Water, Sewer, Storm Drain, Clean Ocean and Solid Waste services. Performance measures address the development, operations and maintenance of safe water supplies and sanitary disposal of waste, and improving local water quality.
√ √
Beaches, Parks & Recreation includes Administration and Recreation services. Golf is also included. Performance measures address the use of City parks and other recreational facilities, including special community events, and the offering of recreation activities to meet the community needs while maintaining the City’s character. √ √ √
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Number of Regular City Council minutes prepared within 21 days of meeting
20 20 19 20
Number of Regular City Council Agendas/Packets posted 4 days prior to meeting
20 20 19 20
Number of formal public records requests 1,394 2,100 1,925 2,100 Number of contracts released within 7 working days of
receipt of completed contract and securities
124 120 120 120
Number of Council-adopted resolutions processed within 7 working days of adoption
194 215 200 215
Number of Council-adopted ordinances processed within 7 working days of adoption
14 20 20 20
Percent of Regular Council Minutes produced within 21
days
100.0% 100.0% 100.0% 100.0%
Percentage of Agendas/Packets provided at least 4 days
prior to the meeting
100.0% 100.0% 100.0% 100.0%
Percentage of public records requests responded to within 10 days
100.0% 100.0% 100.0% 100.0%
Percent of contracts released within 7 working days of
receipt of completed contract and securities
100.0% 100.0% 100.0% 100.0%
Percent of Council adopted resolutions processed within 7 working days of adoption.
100.0% 100.0% 100.0% 100.0%
Percent of Council adopted ordinances processed within 7 working days of adoption.
100.0% 100.0% 100.0% 100.0%
General Government
City Clerk
Workload Outputs:
Performance Measures
Performance Measures
Effectiveness:
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Percentage of quarterly reports completed within the end of the month after the financial close of the quarter.
100.0% 100.0% 100.0% 100.0%
Rate of return on investments 4.09% 3.50% 3.50% 3.50%
Percentage of City operating funds in balance* 91.0% 95.0% 95.0% 95.0% Percentage of adopted fiscal policies in compliance* 86.0% 88.0% 90.0% 90.0% * Annual measurement.
Number of accounting transactions processed 29,299 27,300 30,000 30,500 Number of utility bills generated per year 230,000 226,350 230,000 230,000 Number of business licenses issued 5,490 5,800 5,775 5,800 Average cost to process accounting transactions $40.37 $46.50 $40.50 $40.50 Average cost to generate a utility bill $4.08 $3.75 $3.75 $3.75 Average cost to generate a business license $31.21 $33.00 $33.00 $33.00 Percentage accuracy of financial transactions within
established accuracy rates
100.0% 100.0% 100.0% 100.0%
Percentage of receivables written off 0.00% 0.15% 0.15% 0.15% Percentage of receivables over 60 days old 53.2% 42.0% 42.0% 42.0% Efficiency:
Workload Outputs:
Finance & Administrative Services Administration
Performance Measures
Finance & Administrative Services
Effectiveness:
Effectiveness:
Performance Measures
Efficiency:
Finance Division
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Number of recruitments 29 30 30 30
Number of employees hired 34 30 30 30
Number of open Workers' Compensation claims 13.75 17 17 17 Number of personnel Action Forms processed 685 650 650 650 Percentage of recruitments opened within 2 workdays of
being approved
85.0% 100.0% 100.0% 100.0%
Percentage of employees scheduled for pre-employment
orientation within 2 work days of receipt of PA by Human Resources office
100.0% 100.0% 100.0% 100.0%
Percentage of employees on Workers' Compensation whose
initial paperwork is processed within 1 work day
100.0% 100.0% 100.0% 100.0%
Number of workstation computers administered 316 318 317 315 Number of IT Help Desk service requests closed 2,351 2,800 2,800 2,800 Number of server computers administered (virtual (52),
physical (16), and other (11))
80 82 82 79
Percentage of requests for computer services initial
response provided within 1 business hour
91.8% 99.5% 99.5% 99.5%
Percent of requests for computer services resolved within SLA Estimated Resolution Timeframe
98.4% 99.0% 99.0% 99.0%
Effectiveness:
Performance Measures
Efficiency:
Workload Outputs:
Workload Outputs:
Finance & Administrative Services
Efficiency:
Information Technology
Performance Measures
Human Resources
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Total number of vehicles maintained 161 161 161 161
Number of work orders completed 597 628 647 652
Number of preventative maintenance services completed 202 270 269 270 Number of repeat work orders needed 0 0 0 0
Percentage of fleet available per month 98.9% 99.1% 99.2% 99.1% Percentage of reworks relative to total work orders 0.0% 0.0% 0.0% 0.0% Percentage of preventative maintenance services 100.0%
completed within 1 day
100.0% 100.0% 100.0% 100.0%
Finance & Administrative Services
Contract Fleet Maintenance
Workload Outputs:
Performance Measures
Performance Measures
Effectiveness:
2024-25 2025-26 2026-27 2027-28
Performance Measures Actual Projected Budget Budget
Number of total calls for service 25,330 26,163 25,747 26,004 Number of emergency calls received (Priority 1) 296 266 281 274 Number of traffic collision reports 305 334 320 327
Number of Group A crimes committed per
1,000 population - annual
41.08 34.50 37.79 37.79
Average response time from dispatch to on-scene
emergency calls
4:56 4:25 4:41 4:33
# of use of force 38 48 44 44
# of arrests 902 951 927 939
# of parking violations 6,669 8,494 7,582 8,038
# of moving violations 2,434 2,118 2,276 2,197
# of Group A Crimes 2,559 2,358 2,459 2,408
# of Group B Crimes 957 1,080 1,019 1,049
Percentage of emergency calls responded to in 5 minutes or less
82.6% 81.8% 80.3% 80.2%
Percentage change in Group A crimes
from prior year to current year*
-1.3% -8.5% 4.1% -2.1%
Number of emergency calls 6,013 6,098 6,056 6,006
Number of new construction fire inspections performed 416 407 412 412 Number of fire inspections performed 1,451 810 1,300 1,300 Number of fire plan checks completed 388 443 386 381
Call Processing Time* 0:55 0:54 0:55 0:54
79.7% 85.0% 82.4% 83.4%
Efficiency:
Effectiveness:
Performance Measures
Contract Police Services
Workload Outputs:
Efficiency:
Contract Fire Services
*Times are 90th Percentile.
* In June 2021 statistical data changed from Uniform Crime Reporting (UCR) to the National Incident-Based Reporting System (NIBRS). UCR reports the most serious offense committed in a single incident while NIBRS reports all offenses that occur within a single incident. The reporting differences explain increases in Group A crimes.
Effectiveness:
Public Safety
Workload Outputs:
Percentage of calls with response time within 8 minutes 30 seconds
2024-25 2025-26 2026-27 2027-28
Performance Measures Actual Projected Budget Budget
Number of beach visitors (estimate) 2,130,500 2,483,084 2,407,956 2,385,047 Number of swimmer rescues 1,357 1,775 1,502 1,440
Number of preventative actions via public
education/warnings
21,762 28,597 23,574 22,901
Number of people reached through public education
programs
36,765 40,255 37,620 37,354
Number of drownings with lifeguards on duty 0 0 0 0
Visitors per lifeguard (8 hour shift) 578 774 668 635
Percent of City elementary schools reached through public education*
19.5% 90.0% 93.0% 95.0%
* Annual measurement
Efficiency:
Workload Outputs:
Marine Safety
Performance Measures
Public Safety
Effectiveness:
2024-25 2025-26 2026-27 2027-28
Performance Measures Actual Projected Budget Budget
Number of building permits issued 2,238 2,500 2,200 2,200 Number of Plan Reviews performed 2,368 2,450 2,300 2,300 Number of building inspections completed 10,377 10,000 10,000 10,000 Number of Plan Reviews performed per Plan Check staff 832 975 900 900 Number of inspections conducted per inspector 5,189 4,300 4,750 4,750 Percentage of new projects first review
completed within 15 work days
96.7% 99.0% 99.0% 99.0%
Percentage plan review rechecks
reviewed within 10 work days
95.5% 98.0% 98.0% 98.0%
Number of discretionary applications 135 120 138 135
Number of new administrative applications 276 240 255 240 Number of zoning plan check reviews 1,492 2,100 2,400 2,100 Number of planning agenda items (CC, PC, ZA,
DRSC, PC SS) 87 100 100 100
Number of Special Projects (GP IM's/ZO updates, etc.)
initiated 4.25 4 4 4
Number of people assisted at counter/ over phone 1,211 3,500 3,761 3,700 Number of outreach meetings attended (Business Liaison, Housing/Social Services, etc.) 77 70 71 70
Number of Historic Preservation-related applications 32 30 33 32 Number of Quality Assurance staff hours 104 50 66 70
Number of people assisted at counter/phone/FTE /Qtr 158.8 115.0 112.0 115.0 Number of Plan checks completed/FTE/Quarter 25 75 71 75 Efficiency:
Planning
Workload Outputs:
Building
Community Development
Workload Outputs:
Efficiency:
Effectiveness:
Performance Measures
2024-25 2025-26 2026-27 2027-28
Performance Measures Actual Projected Budget Budget
Percentage of HPPA properties maintained in compliance 72.8% 80.0% 80.0% 85.0% Percentage of plan reviews completed within deadline 93.9% 77.9% 82.0% 85.0% Percent of discretionary applications completed within
deadline
100.0% 100.0% 100.0% 100.0%
Percent of calls returned within one business day 96.7% 85.4% 79.0% 85.0% Percent of counter served within 10 minutes 96.3% 67.3% 62.0% 80.0% Percent of counter served over 10 minutes 27.8% 32.7% 37.0% 10.0% Number of new cases 871 1,646 879 923
Number of complaints processed 1,696 2,690 1,785 1,874
Number of cases closed 886 1,239 848 890
Number of case actions 8,992 7,422 10,045 10,547
Number of site visits conducted 1,649 2,421 1,423 1,494 Number of hours for certification/training 210 244 129 135 Number of outreach hours provided 100.0%0 0 0 0
Number of hours assisting customers at public counter 0 29 0 0 Number of non-parking violations addressed 6,780 8,633 9,496 10,446 Number of parking violations addressed 235 747 822 904
Number of Park & Beach patrols/visits 22,691 23,979 26,377 29,015 Number of hours for certification/training 118 160 83 91 Number of hours assisting reservation/rental customers at Parks/Beaches 313 357 392 431
Number of Maintenance issues reported/addressed 275 180 235 259 Number of hours assisting at special events/escorts 18 24 41 45 Number of permit/business license inspections 8 26 66 73 Number of complaints responded to 795 956 972 1,069
Number of new cases per officer 67 220 231 242
Number of cases closed per officer 67 212 223 234
Number of site visits per day per officer 1.0 2.4 4.0 4.0 Number of actions per officer 174 2,474 2,511 2,637
Number of cases (caseload) per officer 28.7 56 140 147
Number of total violations addressed/week/FTE Ranger 18.8 28 30 33 Number of Park & Beach patrols/week/FTE Ranger 60.2 67 74 81 Average number of hours assisting reservation & rental
customers/rental
0.6 4.8 0.9 1.0
Performance Measures
Planning (continued)
Community Development
Effectiveness:
Workload Outputs:
Efficiency:
Code Compliance
2024-25 2025-26 2026-27 2027-28
Performance Measures Actual Projected Budget Budget
Percentage of cases acknowledged within 2 days 75.1% 72.6% 73.0% 77.0% Percentage of cases resolved within 10 days 48.9% 49.2% 50.6% 53.0% Percentage of cases resolved within 30 days 55.5% 64.6% 57.5% 60.0% Percentage of cases over 60 days old 66.7% 51.2% 67.3% 61.0% Number of Home Rehab loans provided to property owners 0 5 3 3 Number of businesses receiving commercial facade grants 0 3 0 0 Number of non-profits receiving Social Program grants 7 5 5 5 Percentage of Home Rehab loans expended 0.0% 100.0% 100.0% 100.0% Percentage of business commercial façade grants expended 0.0% 100.0% 100.0% 100.0% Percentage of Social Service Program Grants expended 100.0% 100.0% 100.0% 100.0% Community Development
Economic Development/Housing Administration
Workload Outputs:
Performance Measures
Effectiveness:
Code Compliance (continued)
Effectiveness:
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Number of permits issued 497 450 450 450
Number of inspections 3,009 3,200 3,200 3,200
Number of projects submitted for 1st plan check 30 50 50 50 Number of projects submitted for additional plan checks 87 90 90 90 Number of research projects conducted n/a 330 330 330
Number of miles of streets rehabilitated 4.46 10.00 10.00 10.00 Number of citizen traffic complaints received 226 220 220 220 Time spent per first plan review (average hours) 6.00 6.00 6.00 6.00 Time spent per additional plan review (average hours) 5.00 5.00 5.00 5.00 Time spent per research project n/a 0.40 0.40 0.40
Percent of response to citizen complaints within 45 days 85.7% 85.0% 85.0% 85.0% Percent of project reviews completed in 15 days (1st plan check)
85.0% 90.0% 85.0% 85.0%
Percent of project reviews completed in 10 days (add'l plan check)
85.0% 90.0% 85.0% 85.0%
Percent of research projects completed in 10 days 100.0% 95.0% 95.0% 95.0% Percent of projected street miles rehabilitated 22.3% 100.0% 100.0% 100.0% Percent of traffic complaints resolved 85.7% 85.0% 85.0% 85.0% Effectiveness:
Engineering
Performance Measures
Workload Outputs:
Efficiency:
Public Works
Performance Measures
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Number of potholes repaired 11 12 10 10
Number of signs repaired or replaced 194 600 600 600
Number of work orders received/completed by Facilities
Maintenance Section
253 700 500 500
Number of street light/traffic signal repairs 781 700 750 750 Number of USA responses (Underground Service Alerts) 107 200 150 150 Trim 2,500 trees annually to ensure a 8 year cycle 1,200 2,000 1,800 1,800 Number of graffiti cases 753 750 760 760
Average sq. ft. of pothole repairs provided per day of
service
228.7 200.0 180.0 180.0
Average # of signs maintained per hour of service provided 0.3 0.6 0.5 0.5 Average # of facilities maintenance work orders completed per day of service
1.1 4.0 3.0 3.0
Average # of USA completed per day of service 3.5 1.0 1.0 1.0 Average number of streetlight/traffic signal repairs per day 0.5 3.0 3.5 3.5 Cost of graffiti removal per case $120 $130 $135 $135
75.0%
Percentage of trees trimmed to maintain an average 8-year trimming cycle
88.9% 75.0% 73.0% 73.0%
Percentage of signage repair requests responded to and
completed within 3 working days
100.0% 90.0% 85.0% 85.0%
88.0%
Percentage of street light / traffic signal service requests completed within 3 working days
100.0% 93.0% 94.0% 94.0%
Percentage of USA service requests completed within 3
working days
16.7% 100.0% 100.0% 100.0%
Percent of graffiti cases closed within 6 hours 56.8% 70.0% 75.0% 75.0% Percentage of facilities maintenance work orders responded to in 3 working days
97.3%
Performance Measures
Performance Measures
Percentage of pothole service requests repaired within 3 working days
Maintenance
100.0%
Effectiveness:
93.0%
65.0% 75.0%
Efficiency:
88.0%
Public Works
Workload Outputs:
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Acre Feet of Potable water delivered 6,720 6,850 6,850 6,800 Customer Service requests completed 3,864 2,300 3,500 3,500 Millions of gallons of Wastewater processed 3.46 3.60 3.60 3.60 Acre feet of Recycled water delivered 830 1,500 800 800 # of miles of leak detection on potable water pipeline 89 85 85 85 # of Fire Hydrants serviced per year 85 225 225 225
# of potable/recycled water valves exercised per year 850 1,500 1,500 1,500 # of miles of Sewer lines cleaned 91 75 75 75
# of Storm Drain catch basins inspected 339 1,400 1,400 1,400 # of Storm Drain catch basins cleaned 34 150 150 150
# of miles of Sewer lines inspected by video 19.0 35.0 35.0 50.0 # of miles of Storm Drain lines inspected by video 5.0 8.0 8.0 8.0 Water loss audit validity score (annual) 76.0 72.0 72.0 72.0 Preventive maintenance procedures completed per asset 14,526 13,500 13,500 13,500 Percentage of Sewer collection system cleaned annually 56.2% 50.0% 50.0% 50.0% Percentage of catch basins inspected annually 22.7% 50.0% 50.0% 50.0% Percentage of catch basins cleaned annually 2.3% 10.0% 10.0% 10.0% % Water Distribution system integrity - number of water
service leaks & main breaks per 100 miles of pipe
24.0 25.0 25.0 25.0
Performance Measures
Efficiency:
Utilities
Workload Outputs:
Performance Measures
Effectiveness:
Water/Sewer/Storm Drain
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Number of facilities inspected for storm water compliance 774 1000 1000 1000 Number of water quality enforcement actions issued 3 8 8 8 Number of facility inspections per FTE 387 500 500 500
Number of water quality enforcement actions issued 3 8 8 8 Number of households participating in the Household
Hazardous Waste (HHW) Program
565 1,300 1,300 1,300
Number of Waste Management Plans approved 626 700 700 700 Number of Public Outreach impressions 1,567,440 1,567,440 1,567,440 1,567,440 Number of trash barrel placement violations 137 300 300 300 Tons of Solid Waste diverted from landfill 23,866 30,000 30,000 30,000 Total number of Waste Management Plans approved per
quarter within 24 hours
626 800 800 800
Total number of trash barrel placement violations resolved within 7 days
137 300 300 300
Cost of Public Outreach impressions $0.38 $0.41 $0.41 $0.41 Solid Waste program cost per ton diverted $3.11 $3.18 $3.18 $3.18
0.0%
* Solid Waste performance measures are based on waste
diversion controlled by CR&R
Performance Measures
Efficiency:
Efficiency:
Workload Outputs:
Effectiveness:
Solid Waste
Workload Outputs:
Performance Measures
Utilities
Storm Drain (Clean Ocean)
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Number of recreation registrations 23,972 27,000 29,168 29,751 Number of attendees at aquatics centers 36,762 35,000 33,442 34,112 Number of classes offered 2,886 3,152 3,325 3,392
Number of facility bookings 3,948 3,500 3,570 3,641
Number of beach, ballfield, and park bookings 14,105 14,000 15,300 15,606 Number of partnered community events 42 42 48 49
Number of attendees at special events 46,955 52,000 56,510 57,640 Percent of registrations taken on-line 63.8% 78.0% 79.0% 79.0% Percentage of total expenditures recovered by revenues 58.9% 62.0% 62.0% 63.0% 48.9% 62.0% Average number of facility bookings per day 10.8 8.5 8.5 8.5 Average number of beach, ballfield, and park bookings per day
38.7 34.0 34.0 36.0
Average attendence per class 10.1 10.0 11.0 11.0
Efficiency:
Performance Measures
Recreation
Effectiveness:
Performance Measures
Workload Outputs:
Beaches, Parks & Recreation
2024-25 2025-26 2026-27 2027-28
Actual Projected Budget Budget
Number of golf rounds played - projected 114,312 115,000 119,000 121,380 Number of golf course acres maintained 133 133 133 133
Total revenue generated by the Golf Course $3,175,123 $3,151,200 $3,500,000 $3,570,000 Course utilization (rounds played/available tee times*) 96.0% 85.7% 85.7% 85.7% Cost per round $24.05 $32.50 $35.50 $35.50
Percentage cost of recovery 114.4% 99.0% 99.0% 99.0%
Average green speed (Stimpmeter) 10'7" 10'10" 11' 11'
Maintenance quality of golf course retained at a level B May through October
100.0% 100.0% 100.0% 100.0%
Maintenance quality of golf course retained at a level C November through April
100.0% 100.0% 100.0% 100.0%
Beaches, Parks & Recreation
Golf Operating
Performance Measures
Efficiency:
Workload Outputs:
Performance Measures
Effectiveness:
Staffing
The City enters FY 2026-27 and FY 2027-28 with a San Clemente City Employees Association (SCCEA) agreement in place through June 30, 2028. The existing Memorandum of Understanding (MOU) is located on the City website and a summary of pension information, including rates and funding, is in this Budget section. Management will need to ensure timely negotiation and completion of a successor agreement prior to June 30, 2028.
In addition to the current multi-year agreement, the City completed a comprehensive Classification and Compensation Study during Fiscal Year 2024-25, resulting in strategic salary adjustments, classification updates, and workforce alignment efforts designed to strengthen long-term organizational sustainability. These changes have now largely been incorporated into the FY 2026-27 and FY 2027-28 budget framework.
As reflected in the City’s 2026 Assembly Bill 2561 Workforce Report, San Clemente’s workforce remains stable, with a citywide vacancy rate of 13.37% (27 vacancies / 202 authorized positions) reflecting continued progress in workforce stabilization despite competitive labor markets and evolving operational demands. While vacancies remain present in certain areas, the current trend also reflects proactive organization restructuring, succession planning, and strategic modernization efforts rather than workforce instability. Through focused investments in recruitment enhancements, leadership development, and classification modernization, the City continues to strengthen organizational agility, preserve institutional knowledge, and prepare for future workforce demands.
Staffing Changes:
The City continues to refine its workforce structure in alignment with operational priorities, service demands, and long-term organizational needs. Staffing recommendations for FY 2026- 27 and FY 2027-28 focus primarily on targeted organizational adjustments, succession planning, operational realignments and selective classification development designed to strengthen service delivery while maintaining fiscal responsibility.
Key focus areas include enhancing Community Development Park Ranger and Community Outreach capabilities, updating Beaches, Parks and Recreation supervisory structures, refining Public Works/Engineering and Finance and Administrative Services classifications to better align workforce resources with organizational priorities, and advancing Utilities operational succession planning through creation of career pathways.
Several proposed changes are designed not only to address current service demands, but also to proactively position the City for future operational continuity through improved career progression opportunities, enhanced supervisory capacity, and modernization of classifications whose responsibilities have evolved beyond their current structures. This reflects a continued commitment to balancing fiscal stewardship with workforce adaptability, service effectiveness, and long-term organizational readiness.
Staffing
Summary Overview of Recommended Staffing Changes
Public Works
Reclassify (1) vacant Associate Civil Engineer to Management Analyst Reclassify (1) vacant Senior Engineering Technician to Engineering Technician Specialist (GIS)
Reclassify (1) Golf Course Groundskeeper to Golf Course Maintenance Worker Regrade Environmental Programs Analyst due to added supervisory function Add CMMS Administrator (Classification Specification Only) Remove funding for vacant Assistant Engineer
Remove funding for vacant Office Specialist
Community Development
Move (1) Code Compliance Officer to Public Works/Utilities Add Code Compliance Supervisor (Classification Specification Only) Create Community Outreach Coordinator Classification/Reclassify (2) incumbent Community Outreach Workers into this classification
Add one (1) Senior Park Ranger Position
Regrade of Senior Park Ranger classification and Park Ranger Supervisor classification Remove funding for (1) vacant Code Compliance Technician Remove funding for Part-Time Park Rangers
Remove funding for (1) vacant Plans Examiner
Beaches, Parks, & Recreation
Regrade Recreation Director position commensurate with other Department Directors Regrade Recreation Supervisor position
Reclassify Aquatics Supervisor to Recreation Supervisor Add Senior Recreation Supervisor (mid-management) (Class Specification Only) Add Recreation Specialist to part-time salary schedule Add Part-Time Field Ambassador to part-time salary schedule Finance & Administrative Services
Reclassify (2) current Utility Billing Specialists to Senior Utility Billing Specialists Reclassify Revenue Supervisor to Budget Analyst (remove Revenue Supervisor from Salary Table)
Reclassify (1) Accounting Specialist to Junior Accountant Regrade current Accounting Supervisor to better reflect ongoing job duties & responsibilities
Reclassify Legislative Administrator to City Clerk to align with job duties & responsibilities Citywide Part-Time Staff
Part-Time Cost of Living Adjustment (3% in FY 2026-27 and 2.5% in FY 2027-28) for PartTime staff in alignment with SCCEA MOU.
Staffing
Executive, 5.00
Manager, 29.00
Confidential, 4.00
General, 154.00
Sworn, 6.00
Benefited Parttime, 1.25
Workforce by Category
186 192 197 195 191 191 192 194 199 201 198
11 10 6 5
5 5 4 4
1 1
1 0
50 100
150
200
250
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-26 2026-28 Historical FTE Comparison
Benefited P/T Full-Time
Staffing
General Fund Workforce Summary:
Police is the largest Department in the General Fund with 58 FTE positions and is staffed by OCSD. Information on these positions are on the Contract Staffing Chart. In addition to these 58 positions that serve the City of San Clemente directly, regional positions which total 16.9 FTE and are funded, which include traffic, auto theft, detectives, court, and other assistance.
Public Works is the second largest Department, with 41.55 FTE positions. The Staff breakout is listed in the Staffing Chart and include Administration, Engineering, and Maintenance. Staff maintains capital assets and all facilities (including other funds) and staff costs are partially recovered from capital project activity and General Fund Overhead charges.
Fire is part of the General Fund with 39 FTE positions and is staffed by OCFA. Information on these positions are listed on the Contract Staffing Chart. Ambulance staff is not listed, these services are provided by an outside ambulance service.
Community Development has 37 FTE positions. The Staff breakout is listed in the Staffing Chart and these activities include Administration, Building, Planning, and Code Compliance operations. This excludes 2 FTE funded by other funds.
Finance and Administrative Services has 19.50 FTE positions. The Staff breakout is listed in the Staffing Chart and these activities include FAS Admin, Financial Services, Business Services, and Human Resources operations. These divisions provide services to all funds. These costs are partially recovered through General Fund Overhead charges.
Beaches, Parks and Recreation has 18.75 FTE positions. The Staff breakout is listed in the Staffing Chart and includes Recreation Administration and Recreation operations.
Marine Safety has 6 FTE positions, with one limited-term. The Staff breakout is listed in the Staffing Chart and these activities include the Marine Safety operations.
General Government has 8 FTE positions. The Staff breakout is listed in the Staffing Chart and these activities include the City Manager and City Clerk operations. Since these divisions provide services to all funds, a portion of staff costs are partially recovered through General Fund Overhead charges.
General
Government, 8.00
Police, 58.00 Fire, 39.00
Marine Safety, 6.00
Community
Development, 37.00
Finance & Admin
Public Works, 41.55 Services, 19.50
Beaches, Parks &
Recreation, 18.75
General Fund -
Workforce by Department
Status FY 2023-24
Adjusted FY 2024-25
& FY 2025-26
FY 2026-27 & FY 2027-
28 City Manager
City Manager E 1.00 1.00 1.00
Executive Analyst C 1.00 1.00 1.00
Economic Development Officer M 0.00 0.00 0.00
Principal Management Analyst M 1.00 0.00 0.00
Coastal Administrator (A) M 1.00 1.00 1.00
Public Information Coordinator C 0.00 1.00 1.00
Total Full Time 4.00 4.00 4.00
Total City Manager 4.00 4.00 4.00
Finance & Admin. Services
Chief Administative Officer/ACM E 1.00 1.00 1.00
Senior Management Analyst G 0.00 0.00 1.00
Office Specialist G 1.00 1.00 0.00
Total Full Time 2.00 2.00 2.00
Total Finance & Admin. Services 2.00 2.00 2.00
City Clerk
City Clerk M 0.00 0.00 1.00
Legislative Administrator M 1.00 1.00 0.00
Deputy City Clerk G 1.00 1.00 1.00
Records Management Coordinator G 1.00 1.00 1.00
Office Specialist G 1.00 1.00 1.00
Total Full Time 4.00 4.00 4.00
Total City Clerk 4.00 4.00 4.00
Financial Services
Finance Manager M 1.00 1.00 1.00
Accounting Supervisor M 1.00 1.00 1.00
Accountant G 1.00 1.00 1.00
Junior Accountant G 0.00 0.00 1.00
Senior Accounting Specialist G 3.00 3.00 3.00
Management Analyst G 1.00 1.00 0.00
Accounting Specialist G 1.00 1.00 0.00
Office Specialist G 0.00 0.00 1.00
Total Full Time 8.00 8.00 8.00
Total Financial Services 8.00 8.00 8.00
Business Services
Senior Business License Specialist G 0.00 1.00 1.00
Business License Specialist G 1.00 0.00 0.00
Revenue Supervisor G 1.00 1.00 0.00
Budget Analyst G 0.00 0.00 1.00
Senior Utility Billing Specialist G 0.00 1.00 2.00
Utility Billing Specialist G 4.00 3.00 2.00
Total Full Time 6.00 6.00 6.00
Total Business Services 6.00 6.00 6.00
General Liability
Human Resources Analyst (Risk) C 1.00 0.00 0.00
Risk Management/Human Resources Officer M 0.00 1.00 1.00 Total Full Time 1.00 1.00 1.00
Total General Liability 1.00 1.00 1.00
Information Technology
Information Technology Manager M 1.00 1.00 1.00
Information Technology Operations Supervisor G 0.00 1.00 1.00 Staffing Chart
Status FY 2023-24
Adjusted FY 2024-25
& FY 2025-26
FY 2026-27 & FY 2027-
28 Staffing Chart
Senior Information Technology Analyst G 2.00 1.00 1.00
Information Technology Analyst G 1.00 1.00 2.00
GIS Coordinator G 1.00 1.00 1.00
Systems Applications Analyst G 1.00 1.00 0.00
Total Full Time 6.00 6.00 6.00
Total Information Technology 6.00 6.00 6.00
Human Resources
Human Resources Manager M 1.00 1.00 1.00
Human Resources Analyst C 1.00 2.00 2.00
Human Resources Specialist C 1.00 0.00 0.00
Human Resources Specialist PT 0.00 0.50 0.50
Office Specialist PT 0.50 0.00 0.00
Total Full Time 3.00 3.00 3.00
Total Part Time 0.50 0.50 0.50
Total Human Resources 3.50 3.50 3.50
Engineering
Assistant City Engineer M 1.00 1.00 1.00
Associate Civil Engineer M 2.00 3.00 2.00
Assistant Engineer G 5.00 5.00 4.00
Management Analyst G 0.00 0.00 1.00
Sr. Construction Inspector G 1.00 1.00 1.00
Sr. Engineering Technician G 2.00 1.00 0.00
Engineering Technician Specialist - GIS G 0.00 0.00 1.00 Principal Civil Engineer M 1.00 1.00 1.00
Senior Civil Engineer M 3.00 3.00 3.00
Construction Inspector G 1.00 1.00 1.00
Total Full Time 16.00 16.00 15.00
Total Engineering 16.00 16.00 15.00
Maintenance Services
Maintenance Manager M 1.00 1.00 1.00
Maintenance Operations Supervisor M 2.00 2.00 2.00
Facilities Maintenance Coordinator G 1.00 1.00 1.00
Sr. Facilities Maintenance Specialist G 1.00 1.00 1.00
Facilities Maintenance Specialist G 3.00 4.00 4.00
Facilities Maintenance Technician G 1.00 0.00 0.00
Maintenance Leadworker G 1.00 1.00 1.00
Electricial Coordinator G 1.00 1.00 1.00
Electrician G 3.00 3.00 3.00
CMMS Coordinator G 0.30 0.30 0.30
Maintenance Worker G 4.00 4.00 4.00
Contract Maintenance Coordinator G 1.00 2.00 2.00
Maintenance Contract Inspector G 1.00 1.00 1.00
Maintenance Inspection Coordinator G 1.00 0.00 0.00
Administrative Assistant G 1.00 1.00 1.00
Office Specialist G 1.00 1.00 1.00
Total Full Time 23.30 23.30 23.30
Total Maintenance Services 23.30 23.30 23.30
Public Works Administration
Public Works Director/City Engineer E 0.50 0.50 0.50
Deputy Public Works Director M 0.50 0.50 0.50
Environmental Programs Analyst G 0.00 0.00 0.25
Management Analyst G 1.00 1.00 1.00
Status FY 2023-24
Adjusted FY 2024-25
& FY 2025-26
FY 2026-27 & FY 2027-
28 Staffing Chart
Administrative Assistant G 1.00 1.00 1.00
Office Specialist G 2.00 1.00 0.00
Total Full Time 5.00 4.00 3.25
Total Public Works Administration 5.00 4.00 3.25
Building
Building Official M 1.00 1.00 1.00
Senior Building Inspector (A) G 1.00 1.00 1.00
Plans Examiner G 2.00 2.00 1.00
Senior Plans Examiner M 1.00 1.00 1.00
Building Inspector G 2.00 2.00 2.00
Senior Permit Technician G 1.00 1.00 1.00
Permit Technician G 2.00 2.00 2.00
Administrative Assistant G 1.00 0.00 0.00
Office Specialist G 0.00 1.00 1.00
Total Full Time 11.00 11.00 10.00
Total Building 11.00 11.00 10.00
Code Compliance
Code Compliance Manager M 1.00 1.00 1.00
Senior Code Compliance Officer G 1.00 1.00 1.00
Community Outreach Worker G 2.00 2.00 0.00
Community Outreach Coordinator G 0.00 0.00 2.00
Code Compliance Officer G 2.00 2.00 2.00
Code Compliance Technician G 2.00 2.00 1.00
Park Ranger Supervisor G 0.00 1.00 1.00
Lead Park Ranger G 1.00 0.00 0.00
Senior Park Ranger G 2.00 4.00 5.00
Office Specialist G 1.00 1.00 1.00
Total Full Time 12.00 14.00 14.00
Total Code Compliance 12.00 14.00 14.00
Planning
Principal Planner M 0.00 1.00 1.00
City Planner M 1.00 1.00 1.00
Senior Planner M 2.00 1.00 1.00
Assistant Planner G 0.00 0.00 4.00
Associate Planner G 3.00 4.00 0.00
Lead Project Planner G 1.00 1.00 1.00
Planning Technician G 1.00 1.00 1.00
Economic Development Officer M 1.00 0.00 0.00
Administrative Assistant G 1.00 1.00 1.00
Office Specialist G 1.00 0.00 0.00
Total Full Time 11.00 10.00 10.00
Total Planning 11.00 10.00 10.00
Community Development Admin.
Community Development Director E 1.00 1.00 1.00
Management Analyst G 1.00 1.00 1.00
CD Programs Analyst G 0.00 1.00 1.00
Community Development Coordinator G 0.00 0.00 0.00
Senior Customer Service Specialist G 1.00 1.00 1.00
Emergency Management Specialist G 0.00 1.00 1.00
Customer Service Specialist G 0.00 0.00 0.00
Total Full Time 3.00 5.00 5.00
Total CD Administration 3.00 5.00 5.00
Status FY 2023-24
Adjusted FY 2024-25
& FY 2025-26
FY 2026-27 & FY 2027-
28 Staffing Chart
Beaches, Parks & Recreation Administration
Beaches, Parks & Recreation Director E 1.00 1.00 1.00
Senior Administrative Assistant G 1.00 0.00 0.00
Administrative Assistant G 0.00 1.00 1.00
Total Full Time 2.00 2.00 2.00
Total Beaches, Parks & Recreation Administration 2.00 2.00 2.00 Recreation
Aquatics Supervisor G 1.00 1.00 0.00
Recreation Supervisor G 2.00 2.00 3.00
Recreation Coordinator G 5.00 5.00 5.00
Recreation Specialist G 5.00 5.00 5.00
Sr. Customer Service Specialist G 1.00 1.00 1.00
Customer Service Specialist G 2.00 2.00 2.00
Customer Service Specialist PT 0.75 0.75 0.75
Total Full Time 16.00 16.00 16.00
Total Part Time 0.75 0.75 0.75
Total Recreation 16.75 16.75 16.75
Marine Safety
Marine Safety Chief S 1.00 1.00 1.00
Marine Safety Lieutenant S 1.00 1.00 1.00
Marine Safety Officer S 4.00 4.00 4.00
Total Full Time 6.00 6.00 6.00
Total Marine Safety 6.00 6.00 6.00
Golf Course
Golf Course Manager M 1.00 1.00 1.00
Golf Course Maintenance Leadworker G 1.00 1.00 1.00
Golf Course Mechanic G 1.00 1.00 1.00
Golf Course Maintenance Worker G 3.00 3.00 4.00
Golf Course Groundskeeper G 4.00 4.00 3.00
Total Full Time 10.00 10.00 10.00
Total Golf Course 10.00 10.00 10.00
Water
Public Works Director/City Engineer E 0.50 0.50 0.50
Deputy Public Works Director M 0.25 0.25 0.25
Utilities Manager M 0.45 0.45 0.48
Utilities Superintendent Water M 1.00 1.00 1.00
Utilities Superintendent Collections/Maint. M 0.35 0.35 0.40 Utilities Superintendent Environmental M 0.10 0.10 0.10 Office Specialist G 0.50 0.50 0.50
Sr. Office Specialist G 0.50 0.50 0.50
Lead Operator G 2.00 2.00 2.00
Chief Operator Water Systems G 1.00 1.00 1.00
Chief Operator (water) G 1.00 1.00 1.00
Chief Operator (reclaimation) G 0.20 0.20 0.20
Plant Operator G 0.75 0.60 0.60
Systems Operator G 2.00 2.00 2.00
Distribution Operator G 8.00 8.00 8.00
Lead Electrical Instrumentation Technician G 0.40 0.40 0.40 Electrical Instrumentation Technician G 0.80 0.80 0.80
Utilities Mechanic G 1.20 0.00 0.00
Maintenance Mechanic G 0.00 1.20 1.20
Utilities Chief Mechanic G 0.40 0.40 0.40
Status FY 2023-24
Adjusted FY 2024-25
& FY 2025-26
FY 2026-27 & FY 2027-
28 Staffing Chart
Maintenance Leadworker (Water) G 1.00 1.00 1.00
SCADA Systems Administrator G 0.00 0.50 0.50
SCADA Specialist G 0.50 0.00 0.00
CMMS Coordinator G 0.30 0.30 0.30
Management Analyst G 0.50 0.00 0.00
Senior Management Analyst G 0.00 0.50 0.50
Water Conservation Analyst G 0.85 0.85 0.85
Environmental Program Analyst G 0.00 0.00 0.15
Regulatory Compliance Analyst G 1.00 1.00 1.00
Laboratory Coordinator G 0.30 0.30 0.30
Laboratory Technician G 0.00 0.30 0.30
Total Full Time 25.85 26.00 26.23
Total Water 25.85 26.00 26.23
Sewer
Deputy Public Works Director M 0.25 0.25 0.25
Utilities Manager M 0.45 0.45 0.48
Utilities Superintendent Environmental M 0.85 0.85 0.85 Utilities Superintendent Collections/Maint. M 0.55 0.55 0.55 Sr. Office Specialist G 0.50 0.50 0.50
Office Specialist G 0.50 0.50 0.50
Lead Operator G 0.50 0.50 0.50
Chief Operator (Sewer) G 0.70 0.70 0.70
Chief Operator (Reclaimation) G 0.80 0.80 0.80
Plant Operator G 4.25 3.40 3.40
Lead Electrical Instrumentation Technician G 0.60 0.60 0.60 Electrical Instrumentation Technician G 0.90 0.90 0.90
Utilities Mechanic G 1.80 0.00 0.00
Maintenance Mechanic G 0.00 1.80 1.80
Utilities Chief Mechanic G 0.60 0.60 0.60
Collection Systems Operator G 3.50 4.00 4.00
SCADA Systems Administrator G 0.00 0.50 0.50
SCADA Specialist G 0.50 0.00 0.00
Management Analyst G 0.50 0.00 0.00
Senior Management Analyst G 0.00 0.50 0.50
CMMS Coordnator G 0.35 0.35 0.35
Water Conservation Analyst G 0.15 0.15 0.15
Environmental Program Analyst G 0.00 0.00 0.10
Laboratory Coordinator G 0.70 0.70 0.70
Laboratory Technician G 0.00 0.70 0.70
Total Full Time 18.95 19.30 19.43
Total Sewer 18.95 19.30 19.43
Environmental Services Operating
Environmental Programs Analyst M 1.00 1.00 0.00
Total Full Time 1.00 1.00 0.00
Total Environmental Services Operating 1.00 1.00 0.00
Storm Drain Utility
Utilities Manager M 0.10 0.10 0.05
Utilities Superintendent Collections/Maint. M 0.10 0.10 0.05 Utilities Superintendent Environmental M 0.05 0.05 0.05 Chief Operator (Sewer) G 0.30 0.30 0.30
Lead Operator (Sewer) G 0.50 0.50 0.50
CMMS Coordinator G 0.05 0.05 0.05
Enviromental Program Analyst G 0.00 0.00 0.50
Status FY 2023-24
Adjusted FY 2024-25
& FY 2025-26
FY 2026-27 & FY 2027-
28 Staffing Chart
Electrical Instrumentation Technician G 0.30 0.30 0.30
Collection Systems Operator G 1.50 1.00 1.00
Total Full Time 2.90 2.40 2.80
Total Storm Drain Utility 2.90 2.40 2.80
Solid Waste Management
Environmental Services Coordinator G 1.00 1.00 1.00
Total Full Time 1.00 1.00 1.00
Total Solid Waste Management 1.00 1.00 1.00
Grand Total Full Time 199.00 201.00 198.00
Grand Total Benefited Part Time (FTE)* 1.25 1.25 1.25
Total 200.25 202.25 199.25
(A) Contract services are currently used to perform these functions.
Status: E = Executive, M = Manager, C = Confidential, G = General, S = Sworn, PT = Benefited Part-Time, L = Limited-Term *Includes only Benefited Part-time positions. FTE’s for hourly, non-benefited Part-time FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
Fire Contract (OCFA)
Battalion Chief 3.00 3.00 3.00 3.00 3.00
Fire Captains 6.00 6.00 6.00 6.00 6.00
Fire Paramedic Captains 3.00 3.00 3.00 3.00 3.00
Fire Engineers 6.00 6.00 6.00 6.00 6.00
Paramedic Engineers 3.00 3.00 3.00 3.00 3.00
Paramedic Firefighters 12.00 12.00 12.00 12.00 12.00
Firefighters 6.00 6.00 6.00 6.00 6.00
Total Fire Contract * 39.00 39.00 39.00 39.00 39.00
Police Contract (OCSD)
Captain 1.00 1.00 1.00 1.00 1.00
Patrol Sergeant 4.00 4.00 4.00 4.00 5.00
Administrative Sergeant 1.00 1.00 1.00 1.00 1.00
Investigator 4.00 4.00 4.00 4.00 3.00
Deputy 37.00 37.00 37.00 37.00 37.00
Deputy/DET 1.00 1.00 1.00 1.00 1.00
Deputy/School Resource 1.00 1.00 1.00 1.00 1.00
Deputy/Motorcycle 2.00 2.00 2.00 2.00 2.00
Community Services Officer 4.00 4.00 4.00 4.00 4.00
Crime Prevention Specialist 1.00 1.00 1.00 1.00 1.00
Staff Specialist 0.00 1.00 1.00 1.00 1.00
Office Specialist 2.00 1.00 1.00 1.00 1.00
Police Contract - Direct Staffing 58.00 58.00 58.00 58.00 58.00 Regional Staffing ** 16.90 16.90 16.90 16.90 15.90
Total Police Contract** 74.90 74.90 74.90 74.90 73.90
Animal Services Contract
General Manager 1.00 1.00 1.00 1.00 1.00
Animal Services Supervisor 0.00 0.00 1.00 1.00 1.00
Animal Services Officer Supervisor 1.00 1.00 1.00 1.00 1.00 Animal Services Officer 2.00 2.00 3.00 3.00 3.00
Kennel Attendant 3.00 3.00 2.75 2.75 2.75
Animal Services Supervisor 0.00 0.00 0.00 0.00 0.00
Customer Service Specialist II 1.00 1.00 1.00 1.00 1.00 Total Animal Services Contract 8.00 8.00 9.75 9.75 9.75 Fleet Contract
General Manager 0.80 0.80 0.80 0.80 0.80
Technician II 2.00 2.00 2.00 2.00 2.00
Office Clerk 0.75 0.75 0.75 0.75 0.75
Total Fleet Contract 3.55 3.55 3.55 3.55 3.55
Contract Staffing Chart
* In FY 2017-18, all Emergency Transport Services were discontinued with OCFA and transitioned to a private ambulance contract with a private provider, providing two full-time Ambulances servicing the City of San Clemente. ** The OCSD Contract also includes 15.90 FTE of Regional support for Traffic, Auto Theft, Detective and other aspects.
Pension Summary
The City has multiple pension plans, which are summarized in the following chart.
Plan Plan Administration Participants Benefit
Marine Safety CalPERS Lifeguards (Full Time) 3% @ 55 (Classic)
2.7% @ 57 (PEPRA)
Safety (Inactive) CalPERS Former police and fire employees 2% @50 (Classic)
2.7% @57 (PEPRA)
Miscellaneous CalPERS General employees (non-safety) 2% @ 55 (Classic) 2% @ 62 (PEPRA)
City of San Clemente Employee
Retirement Plan (CSCERP)
Milliman / Empower Former City employees and Coastal
Animal Services employees
2% @ 55 (Classic)
2% @ 62 (PEPRA)
Coastal Animal Services
Authority (CASA)
CalPERS Current CASA employees 2% @ 55 (Classic)
2% @ 62 (PEPRA)
PENSION CONTRIBUTIONS
Each pension plan’s contribution rates change annually and the FY 2026-27 and FY 2027-28 actuarially determined rates are budgeted. Contributions are comprised of two factors: 1) A percentage rate based on payroll costs to fund the normal cost and 2) An annual flat dollar amount to pay the Unfunded Accrued Liability (UAL) required contribution. The employee rate is paid by employees and the employer rate and the UAL payments are paid by the City.
EMPLOYER PAID PORTION
Plan
FY 2026-27
Employee Rate
FY 2026-27
Employer Rate UAL Amount
Marine Safety 14.5% (PEPRA)
9.00% (Classic)
14.86% (PEPRA)
26.37% (Classic)
$ 108,000
Safety (Inactive) 0% 0% $ 1.5 million
Miscellaneous 8.25% (PEPRA)
7.00% (Classic)
9.57% (PEPRA)
9.57% (Classic)
$ 1.6 million
Coastal Animal Services Authority 7.75% (PEPRA)
7.00% (Classic)
7.9% (PEPRA)
12.5% (Classic)
CSCERP 0% 0% $ 2.0 million
PENSION PLAN FUNDING
The funding ratio for all plans improved from 71% to 75% from the last budget based on investment results. Individual plans are funded at different levels with the percentages listed by Plan in the following chart. An updated CASA plan actuarial report is not available yet.
Plan
Respective
Fund(s)
Market Value
of Assets Liability
Unfunded
Amount
Funding
Ratio
Marine Safety* General Fund $ 7,155,409 $ 8,565,661 $ 1,410,252 84 % Safety (Inactive)* General Fund 31,220,538 41,541,075 10,320,537 75 % Miscellaneous* All City Funds 76,295,588 95,725,878 19,430,290 80 % CSCERP** All Funds 26,813,000 43,400,000 16,587,000 62 % Totals $ 141,484,535 $ 189,232,614 $ 47,748,079 75 %
* CalPERS valuation information as of 6/30/2024.
** CSCERP valuation information as of 6/30/2025 valuation.
Pension Summary
SECTION 115 TRUST FUNDING
Section 115 funds offer flexibility and opportunities for higher returns than the limited City investment pool assets. Section 115 Trust assets are utilized to offer better long term returns than the City’s investment pool portfolio. The assets could fund any of the City’s multiple pension plans, assist in making required actuarial contributions in tight budget years, or bolster funded status for pension funds which experience poor actuarial impacts.
In FY 2024-25, the City funded a Section 115 trust administered by PARS in the amount of $1,180,000. This trust is dedicated to prefunding Pension costs for the City of San Clemente and the amount at December 31, 2025 was $1,182,781. The source of this funding is only from the General Fund of the City of San Clemente.
In FY 2015-16, the City started to fund Other Post-Employment Benefits through the California Employers' Retiree Benefit Trust (CERBT) Fund. This Section 115 trust is a multiple employer tax exempt Trust organized under Section 115 of the Internal Revenue Code dedicated to prefunding Other Post-Employment Benefits (OPEB) for all eligible California public agencies. Even those not contracted with CalPERS health benefits can prefund future retiree benefits such as health, vision, dental, and life insurance. The amount at June 30, 2025 in this trust is $1.9 million.
List of Acronyms
AB Assembly Bill
ACFR Annual Comprehensive Financial Report
AQMD Air Quality Management District
CAC Coastal Advisory Committee
CalPERS California Public Employees Retirement System
CASA Coastal Animal Services Authority
CDBG Community Development Block Grant
CDBG-CV Community Development Block Grant – Coronavirus CIP Capital Improvement Program
CJPIA California Joint Powers Insurance Authority
CMMS Computerized Maintenance Management System
COBRA Consolidated Ominbus Budget Reconciliation Act
COLA Cost of Living Allowance
COPS Citizens Options for Public Safety Grant
CWA Clean Water Act
DOJ Department of Justice Grant
EDMS Electronic Document Management System
EPA Envirnmental Protection Agency Grant
FEMA Federal Emergency Management Agency
FHWA Federal Highway Administration
FLSA Fair Labor Standards Act
FTE Full Time Equivalent
FY Fiscal Year (June 30th)
GAAP Generally Accepted Accounting Principles
GASB Government Accounting Standards Board
GDP Gross Domestic Product
GFOA Government Finance Officers Association
GMA Growth Management Area
HUD US Department of Housing and Urban Development
HVAC Heating, ventilation, and air conditioning
IPMC International Property Maintenance Code
JRWSS Joint Regional Water Supply System
LTFP Long-Term Financial Plan
MWD Metropolitan Water District of Southern California
NPDES National Pollution Discharge Elimination System
OCFA Orange County Fire Authority
OCSD Orange County Sheriff’s Department
OCTA Orange County Transit Authority
OES Office of Emergency Services
OHBC Ole Hanson Beach Club
OPEB Other (than pensions) Post Employment Benefits
PERS Public Employee Retirement System
RCFPP Regional Circulation Financing and Phasing Program RDA Redevelopment Agency (Dissolved 2/1/2012)
SCAC San Clemente Aquatics Center
SCADA Supervisory Control and Data Acquisition System
SCAQMD South Coast Air Quality Management District
SCCEA San Clemente City Employee Association (City union employees) SDWA Safe Drinking Water Act
SONGS San Onofre Nuclear Generating Station
SOCWA South Orange County Wastewater Authority
List of Acronyms
SRF State Revolving Fund
STLU Short Term Lodging Unit
SWRCB State Water Resources Control Board
TEA Transportation Enhancement Activities
TOT Transient Occupancy Tax
UAL Unfunded Accrued Liability
URMP Urban Runoff Management Plan
VHSP Vista Hermosa Sports Park
VLF Vehicle License Fees
Glossary
AB939:
In 1989, Assembly Bill 939, known as the Integrated Waste Management Act, was passed because of the increase in waste stream and the decrease in landfill capacity. Mandates a reduction of waste being disposed: jurisdictions were required to meet diversion goals of 25% by 1995 and 50% by the year 2000. AB 939 also established an integrated framework for program implementation, solid waste planning, and solid waste facility and landfill compliance.
AB2928:
A State of California Assembly Bill entitled “Traffic Congestion Relief Act” that provides funding for the street and highway pavement maintenance, rehabilitation and reconstruction of necessary associated facilities.
Accounting System:
The City’s financial set of records and procedures that record, classify, and report information on the status and operations of the City.
Accrual Basis Accounting:
Under this accounting method, transactions are recognized when they occur, regardless of the timing of related cash receipts and disbursements. All proprietary and fiduciary funds are accounted for using the accrual basis of accounting.
Air Quality Improvement Fund:
The Air Quality Improvement Fund is used to account for revenues and expenditures relating to the reduction of vehicle pollution.
American Rescue Plan Act (ARPA):
The American Rescue Plan Act (ARPA) of 2021 is a $1.9 trillion economic stimulus bill. Within the ARPA, the Coronavirus State and Local Fical Recovery Fund (CSLFRF) provides $350 billion for states, municipalities, counties, tribes, and territories, including $130 billion for local governments split evenly between municipalities and counties.
Amortization:
The process of decreasing, or accounting for, an amount over a period of time.
Annual Comprehensive Financial Report (ACFR):
The official financial report of the City. It includes an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions.
Appropriation:
An authorization made by the City Council which permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are typically granted for a one-year period.
Appropriation Ordinance:
The official legal document approved by the City Council authorizing city officials to obligate and expend resources.
Assessed Valuation:
The estimated value of real and personal property used by the Orange County Assessor as the basis for levying property taxes.
Actuarial Assumptions:
Mathematical/statistical assumptions on a variety of information that dictate the rates paid by public employers and employees (Life expectancy, number of FTE’s, market rate assumptions etc.) Balanced Budget:
A balanced budget is one in which total expenditures equal total revenue. An entity has a budget surplus if expenditures are less than revenues. It has a budget deficit if expenditures are greater than revenues.
Bond (Debt Instrument):
A written promise to pay a specified sum of money at a specified future date, at a specified interest rate. Bonds are typically used to finance capital facilities.
Glossary
Bond Rating:
The City has an “issuer bond rating” of AAA awarded by the rating firm of Standard & Poor’s. An obligation rated “AAA” is the highest rating assigned by Standard & Poor’s. This means that the City’s capacity to meet its financial commitment on the debt obligation is extremely strong.
Budget:
A financial plan, including proposed expenditures and estimated revenues, for a period in the future.
Budget Document:
The official financial spending and resource plan submitted by the City Manager and adopted by the City Council explaining the approved budget to the public and City Council.
California Public Employees Retirement System (CalPERS):
Public Employees Retirement System provided for Public Safety personnel by the State of California.
Capital Assets:
Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets.
Capital Expenditures:
Expenditures which result in the acquisition of or additions to fixed assets. Examples include land, buildings, machinery and equipment, and construction projects.
Capital Improvements:
Buildings, structures, or attachments to land such as sidewalks, trees, drives, pipelines, drains and sewers.
Capital Improvement Program (CIP):
A plan, over a period of six years, setting forth each capital project; the amount to be expended in each year; and the method of financing capital expenditures.
Capital Projects Fund:
In governmental accounting, this is a fund that accounts for financial resources to be used for the acquisition or construction of capital facilities. The total cost of a capital project is accumulated in a single expenditure account which accumulates until the project is completed, at which time the fund ceases to exist.
Community Development Block Grant (CDBG):
Federal grant funds distributed from the U.S. Department of Housing and Urban Development (HUD). The City primarily uses these funds for housing rehabilitation, public improvements, and local public service programs.
Carry Forward Projects:
Capital improvement projects approved in prior fiscal years which have been brought forward into the new fiscal year budget.
Central Services Fund:
The Central Services Fund is used to account for the cost of providing central mail, reprographic services and for the operating costs of routine and emergency communications for all City Departments.
California Joint Powers Insurance Authority (CJPIA):
This is a public-entity risk pool comprised of a cooperative group of governmental agencies joined together to finance the exposure of liability and workers’ compensation risks. The City is self-insured for both liability and workers’ compensation insurance. CJPIA provides excess coverage on liability losses.
Citizens Options for Public Safety (COPS) Grant:
The City receives these funds based on California legislative approval of the annual appropriation to counties and cities for public safety.
The grants are distributed based on population. The funds are restricted to “front-line” law enforcement efforts and are used to partially fund a deputy position.
Glossary
Clean Ocean Fund:
This fund, created in January of 2003, accounts for activities associated with improving surface water quality and for complying with Federal and State mandated storm water/urban runoff discharge issues.
Clean Ocean Improvement Reserve:
The Clean Ocean Improvement Reserve provides for capital improvements necessary to comply with the requirements of the State of California clean ocean water quality program.
Clean Water Act (CWA):
The primary federal law in the U.S. governing water pollution. Its objective is to restore and maintain the chemical, physical, and biological integrity of the nation’s waters by preventing point and nonpoint pollution sources, providing assistance to publicly owned treatment works for the improvement of wastewater treatment, and maintaining the integrity of wetlands.
Coastal Advisory Committee (CAC):
A City Council appointed committee to make recommendations on coastal zone policies and to serve as an advocate on coastal related issues.
Coastal Animal Services Authority (CASA):
The Joint Powers Agency (JPA) which provides animal control and shelter for the cities of San Clemente and Dana Point.
Commputerized Maintenance Management System (CMMS):
A computer database of information about the City’s maintenance operations.
Consolidated Ominbus Budget Reconciliation Act (COBRA):
Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1986. The law amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise would be terminated.
Cost of Living Allowance (COLA):
Cost of Living Allowance agreed to between the City and the San Clemente City Employee Association (SCCEA).
Constant Dollars:
A measure of the cost of goods or services with the effects of inflation removed.
Contingency:
A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted.
Contingent Liabilities:
Items which may become liabilities of the City but are undetermined at a given date, such as pending lawsuits, unsettled disputed claims, unfilled purchase orders, and uncompleted contracts.
Contract Services:
Services provided to the City from the private sector or other public agencies.
Contributed Capital:
Resources which are externally restricted for the acquisition or construction of capital assets. This category includes, but is not limited to, capital grants, residual equity transfers in and contributions from developers.
Cost Allocation:
A fair and equitable methodology for identifying and distributing direct and indirect costs, from a service provider to the service consumer.
In the City’s case, the general fund is the service provider, while the external funds are the service consumer.
Debt Service:
Payment of interest and repayment of principal to holders of the City's debt instruments.
Glossary
Debt Service Fund:
A fund established to account for the accumulation of resources for the payment of long-term debt principal and interest.
Decision Package:
A standardized format whereby departments may request budgetary consideration for new programs, positions, capital equipment, and reclassification.
Deficit:
The excess of liabilities over assets.
Depreciation:
Cost recorded based on an assets estimated useful life due to a decrease in value based on wear and tear, decay and general decline in value.
Developer Fees:
Fees that are charged for specific Community Development services.
Developers Improvement Fund:
The Developers Improvement Fund is used to account for the proceeds of settlements from developers and the future costs of maintaining and/or improving the streets or other infrastructure in the related development tracts.
Electronic Document Management System (EDMS):
The City implemented a two-year project in 2000 to convert the City’s current and future records from paper to electronic storage. The Electronic Document Management System (EDMS) provides a program that allows retrieval of stored documents by staff and the public.
Within the Central Services Fund, funding is appropriated for the on-going conversion of documents to the system. Divisions are allocated EDMS charges through interdepartmental charges, one year in arrears, for the scanning of documents.
Encumbrance:
An amount of money committed for the payment of goods and services not yet received or paid for.
Emergency Reserves:
An Emergency Reserve is an amount committed through City Council action or review to set aside amounts to provide protection from risk, such as economic downturns, extreme events, and natural disasters.
Enterprise Fund:
In governmental accounting, a fund that provides goods or services to the public for a fee that makes the entity self-supporting. It basically follows GAAP as does a commercial enterprise.
Environmental Protection Agency (EPA) Grant:
The Environmental Protection Agency (EPA) grant funding is dispersed by the EPA to the City via project-specific grants for the planning and implementation of urban runoff water quality improvement initiatives. Under terms of these grants, the City is required to provide matching funds for 45% of the project cost.
Expenditures:
Accounts kept on the accrual or modified accrual basis of accounting to track when expenditures are recognized, such as goods are received or services rendered.
Facilities Maintenance Reserve:
The Facilities Maintenance Reserve provides a funding source for maintenance of City facilities. Facilities maintenance expenditures include costs such as flooring replacement, roof replacement, interior and exterior painting, HVAC replacement and parking lot seal coat/striping for all City facilities, plus the compressor, speed drive and boiler for the City pool.
Federal Emergency Management Agency (FEMA):
Federal Emergency Management Agency. A Federal Agency that supports citizens and first responders to ensure that we work as a nation to build, sustain and improve our capability to prepare for, protect against, respond to, and recover from all hazards.
Glossary
Federal Safe Water Drinking Act (SDWA):
The principal federal law in the U.S. intended to ensure safe drinking water for the public. SDWA applies to every public water system in the U.S.; however, it does not regulated bottled water.
Fiduciary Funds:
Funds used to report assets held in a trustee or agency capacity for others.
Fiscal Year:
A 12-month period to which the annual operating budget applies and at the end of which the City determines its financial position and results of its operations. San Clemente's financial year runs from July 1 - June 30.
Financial Overview:
This section provides an overview of the changes adopted in the budget. Additionally, the significant impacts of budgetary changes are outlined along with dollar amounts (Increase/Decrease).
Five-Year Financial Forecast:
Estimates of future revenues and expenditures to help predict the future financial condition of the community. The Five Year Financial Forecast is included in the City’s annual Long Term Financial Plan.
Fixed Assets:
Assets which are intended to be held or used for a long term, such as land, buildings, improvements other than buildings, machinery and equipment.
Fleet Maintenance Fund:
The Fleet Maintenance Fund is used to account for the operation, maintenance and replacement of City owned vehicles and equipment.
Fleet Replacement Reserve:
The Fleet Replacement Reserve accounts for funds set aside for replacement of Fleet vehicles and equipment.
Fair Labor Standards Act:
The Fair Labor Standards Act sets minimum wage, overtime pay, equal pay and Child Labor Standards for private and public sector employees. Enforcement of the FLSA is assigned to the Department of Labor, Wage and Hour Division.
Full Time Equivalents:
The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year.
For example, a full-time employee (1 FTE) is paid for 2,080 hours per year, while a .5 FTE would work 1,040 hours per year.
Fund:
An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves and equities.
Fund Accounting:
System used by nonprofit organizations, particularly governments. Since there is no profit motive, accountability is measured instead of profitability. The main purpose is stewardship of financial resources received and expended in compliance with legal requirements.
Fund Balance:
The excess of fund assets and resources over fund liabilities is also defined as Fund Equity. A portion of Fund Equity may be unspendable, restricted, committed, assigned and unassigned; the remainder is available for appropriation, and is referred to as the Fund Balance.
Fund Equity:
The excess of fund assets and resources over fund liabilities. A portion of the equity of a governmental fund may be unspendable, restricted, committed, assigned and unassigned; the remainder is referred to as fund balance.
Glossary
Funded Status:
A measure of how well funded, or how “on track” a plan or risk pool is with respect to assets versus accrued liabilities. A ratio greater than 100 percent means the plan or risk pool has more assets than liabilities and a ratio less than 100 percent means liabilities are greater than assets.
Gas Tax Fund:
The Gas Tax Fund accounts for revenues and expenditures apportioned under the Streets and Highways Code of the State of California.
Expenditures may be made for any street related purpose in the City’s system of streets, County bikeways and pedestrian walkways.
General Employee:
Administrative and clerical support, maintenance workers, skilled trade and craft workers.
General Fund:
In governmental accounting, the fund used to account for all assets and liabilities of a nonprofit entity, except those particularly assigned for other purposes in another more specialized fund. It is the primary operating fund of the City of San Clemente.
General Government:
City Manager, City Council, City Clerk, and Economic Development Divisions.
General Liability Self-Insurance Fund:
The General Liability Self-Insurance Fund is used to provide the City with liability and property insurance. Coverage is provided through the City’s participation in a joint powers agreement through the CJPIA.
General Obligation Bonds:
Bonds for which the full faith and credit of the City is pledged for payment.
General Plan:
Document which incorporates the strategic vision of the community into guiding principals for land use, urban design, housing, mobility, economic development, public health and safety, environmental resources, utilities, recreation and historic and cultural resources.
Generally Accepted Accounting Principles:
Uniform minimum standards for financial accounting and reporting that govern the form and content of the basic financial statements..
Government Finance Officers Association:
The GFOA develops a body of recommended best practices in the functional areas of public finance to give state and local governements more guidance on sound financial management practices.
Golf Course Capital Improvement Reserve:
The Golf Course Capital Improvement Reserve provides for capital improvements to the existing golf course.
Golf Course Fund:
The Gold Course Fund accounts for the operation, maintenance and assets associated with the City-owned 18-hole golf course.
Golf Depreciation Reserve:
The Golf Depreciation Reserve accounts for funds set aside for replacement or major repairs of Golf Fund equipment or facilities.
Government Accounting Standards Board:
An organization created to provide comparability and consistency between different government agencies. GASB issues statements regarding various accounting issues and provides guidelines on how accounting transactions should be recorded.
Governmental Fund:
Governmental Funds are a self-balance set of accounts whose primary sources are taxes, intergovernmental revenues, and other nonexchange revenues.
Homeowners Exempt Subvention:
Supplemental homeowner’s property tax used for public utilities.
Glossary
Housing and Urban Development:
US Department of Housing and Urban Development. Fedearl Agency set up to create strong, sustainable, inclusive communities and quality afforadable housing for all.
Improvements:
Buildings, structures, or attachments to land such as sidewalks, trees, drives, tunnels, drains and sewers.
Information Technology Fund:
The Information Technology Fund accounts for costs associated with the City's centralized computer system and is used to distribute these costs to the benefiting departments on a pro rata basis. Costs for hardware and software maintenance and development, computer training and staff support are included
Interdepartmental/Interfund Transfers:
Flows of assets (such as cash or goods) without equivalent flows of assets in return and without a requirement for repayment.
Interest and Rentals:
Revenue derived from the use of property or money.
Interfund Payments:
Expenditures made to other City funds for services rendered.
Interfund Transfers:
Revenues earned for services provided to other City funds.
Intergovernmental Revenue:
Revenue received from other governmental agencies and municipalities, such as grants from the State or Federal government.
Intergovernmental Services:
Purchases from other governments of those specialized services typically performed by local governments.
Internal Service Fund:
Funds used to account for the financing of goods or services provided by one department to other departments or agencies of the City.
Joint Regional Water Supply System:
A joint powers authority that ownes, operates and maintains the water system infrastructure.
Lease-Purchase Agreements:
Contractual agreements which are termed "leases", but which in substance amount to purchase contracts.
Levy:
(Verb) To impose taxes, special assessments or service charges for the support of governmental activities. (Noun) The total amount of taxes, special assessments or service charges imposed by Orange County levying property taxes.
Licenses and Permits:
Revenues earned by the issuance of licenses or permits levied in accordance with the benefits conferred by the license or permit.
Local Drainage Facilities Fund:
The Local Drainage Facilities Fund is used to account for drainage fees collected to defray the cost of designing and constructing local drainage facilities and the expenditures for those purposes.
Long-Term External Debt:
Debt borrowed from a source outside the City with a maturity of more than one year after the date of issuance.
Long-Term Financial Plan:
A plan which identifies fiscal issues and opportunities, establishes fiscal policies and goals, examines fiscal trends, produces a financial forecast, and provides for feasible solutions.
Glossary
Maintenance:
Expenditures made to keep an asset in proper condition or to keep an asset in working order to operate within its original capacity.
Major Fund:
Funds in which revenues, expenditures, assets or liabilities are at least 10% of corresponding totals for all governmental or enterprise funds, and at least 5% of the aggregate amount for all governmental and enterprise funds for the same item.
Measure M2:
A local initiative that increased sales taxes by one-half percent approved by Orange County Voters in 1990, which provides funding for transportation improvements. This was extended and is now call Measure M2.
Medical Insurance Fund:
The Medical Insurance Fund accounts for expenditures for medical benefits offered to all regular full-time employees.
Metropolitan Water District (MWD) of Southern California:
Metropolitan Water District of Southern California is a wholesaler that provides water to cities and water districts. These cities and water districts provide drinking water to people in parts of Los Angeles, Orange, San Diego, Riverside, San Bernadino and Ventura counties.
Miscellaneous Grants Fund:
The Miscellaneous Grants Fund accounts for federal grants received from the Department of Housing and Urban Development (HUD). The grants are to be used for the development of a viable community by providing decent housing, a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.
Modified Accrual Basis:
Under this accounting method, revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures for the most part are recognized when the related fund liability is incurred except for prepayments, accumulated employee leave and long-term debt. All governmental funds are accounted for using the modified accrual basis of accounting.
Net Working Capital:
Net Working Capital is a common accounting formula used for financial analysis. It is defined as current assets minus current liabilities.
Usually simply called working capital.
National Pollution Discharge Elimination System:
Permit system established by the U. S. Environmental Protection Agency to regulate discharge of treated sewage, storm water and urban runoff.
Object:
An expenditure classification which refers to the type of item purchased or the service obtained. Examples include personnel, supplies, and contract services.
Orange County Transit Authority:
Orange County Transit Authority serves Orange County residents and travelers by providing countywide bus and paratransit service, Metrolink rail service, the 91 Express Lanes, freeway, street and road improvement projects, individual and company commuting solutions, motorist aid services and by regulating taxi operations.
Office of Emergency Services:
Office of Emergency Services of the State of California helps to protect lives and property, build capabilities, and support communities by preparing for, protecting against, responding to, and recovering from the impacts of all hazards and threats.
Glossary
Operating Budget:
The operating budget is the primary means by which most of the financing of acquisition, spending and service delivery activities of a government are controlled. The use of annual operating budgets is required by law.
Operating Expenditures:
Costs which are routine in nature and are generally recurring annual costs, excluding debt service, non-recurring capital, transfers, and onetime cost for studies or other non-recurring costs.
Operating Funds:
Funds which are utilized to account for the day-to-day activities of the fund. Examples of this type of fund would be Water Operating, Sewer Operating, Central Services and the General Fund.
Operating Revenues:
Revenues which are routine in nature and are recurring revenue sources. Revenues excluded would include one-time grants or sources of revenues, including transfers from other funds.
Operating Transfer:
Routine or recurring transfer of assets between funds.
Other Charges:
Expenditures that do not fit in other categories, such as insurance premiums and claims, and service/social program expenditures.
Other (than pensions) Post Employment Benefits:
Other Post Employment Benefits refer to benefits other than pensions paid by the employer for retired employees. This refers to retiree medical, dental, prescription drug, vision, life insurance, group legal and long-term care benefits.
Other Revenues:
Revenues from sources other than those specifically identified that are too immaterial in amount to justify the creation of new revenue account line items.
Overhead Charges:
General Fund Overhead (Cost Allocation Program) charges are the recapturing of the cost of services provided to the other funds from the General Fund. These costs would include Personnel, Finance, Payroll, Accounts Payable, Accounts Receivable, City Clerk, and general administration, utilities, maintenance, etc.
Parimutuel Taxes:
“Parimutuel” is a system of betting on races in which the winning bettors share the total amount bet minus a percentage to the operators.
The tax is collected by registered racetracks (collectors) and remitted to the City.
Parks Acquisition and Development Fund:
The Parks Acquisition and Development Fund is used to account for the revenues received from developer fees and the expenditures for the acquisition, construction, improvement or renovation of City owned parks.
Park Asset Replacement Reserve:
The City Council has established a Park Asset Replacement Reserve with a target balance of $1.2 million for the replacement of park assets.
Performance Measure:
Represents the objectives of each City department along with a target date for achieving the objective.
Performance Results:
A summary of major accomplishments and objectives that were met during the fiscal year.
Personnel:
Salaries paid to City employees. Included are items such as regular full time, regular part time, premium overtime and special duty pay.
Glossary
Personnel Benefits:
Those benefits paid by the City as conditions of employment. Examples include insurance and retirement benefits.
Police Grants Fund:
The Police Grants Fund is used to account for revenues and expenditures relating to police grants.
Professional:
Technical experts, analysts, professional engineers and planners.
Program:
Organizational units directed to attain specific purposes or objectives.
Projected Surplus/Deficit:
The projected surplus/deficit is the net of forecasted receipts and forecasted disbursements. A surplus is the result of receipts exceeding disbursements, and a deficit is the result of disbursements exceeding receipts.
Proposition 13:
Limits the local property tax rate to a maximum of 1% of a property's assessed market value, rolled back assessments to 1975 values, and unless a property was sold, capped the increase in assessed values at 2%. New taxes, such as a parcel tax, must be approved by two-thirds of local voters.
Proposition 42:
Transportation Funding Plan that requires, effective July 1, 2008, existing revenues resulting from state sales and use taxes be used for public transit and mass transportation; city and county street and road repairs and improvements; and state highway improvements.
Imposes the requirement for a two-thirds of the Legislature to suspend or modify the percentage allocation of the revenues.
Proposition 50:
Proposition 50, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act was approved by the voters in 2002. The bill authorizes grants and loans for the purpose of protecting drinking water from intentional contamination.
Proposition 57:
Proposition 57, the Governor’s Economic Recovery Bond bill, was approved by the voters in March 2004. This bill authorized the State to sell $15 billion of deficit financing bonds to put the budget back in balance. Proposition 57 includes a proposed “triple flip” which essentially swaps one-quarter percent of the local sales tax for an equal amount of “in-lieu” sales tax.
Proposition 58:
Passed in March 2004, this proposition changed the State Constitution and mandates the passage of a balanced budget. If the Legislature and Governor do not pass a balanced budget by July 1, the appropriation level from the previous year’s budget will remain in effect.
Constitutional changes were enacted upon which set up a special reserve account that would reach $8 billion or 5% of the General Fund.
This legislation also restricts the use of certain types of borrowing to cover state deficits.
Proposition 218:
A statewide initiative passed by the voters of California on November 5, 1996. The initiative provided voters with the right to vote on new taxes. The passage of Proposition 218 also eliminated the City’s Lighting & Landscape assessment district because assessments considered “general benefits” such as beach maintenance could not be assessed to property owners.
Proprietary Fund:
Proprietary Funds are a self-balance set of accounts that focus on determination of operating income and whose primary revenue sources are user charges to achieve cost recovery.
Public Facilities Construction Fund:
The Public Facilities Construction Fund is used to account for developer fees collected at the time a building permit is issued to provide for future public facilities necessitated by new development and expenditures for construction of beach parking facilities, public safety buildings or equipment and public facilities.
Glossary
Purpose Statement:
This provides a general description of the primary purpose of a department or division.
Quimby Act:
The Quimby Act was first established in 1965 by the California legislature. It provides provisions in the Subdivision Map Act for the dedication of fees and/or parkland. California State law requires developers to dedicate fees or land for public parks at a ratio of 5 acres per 1,000 residents in the new development.
Regional Circulation Financing and Phasing Program Fund:
The Regional Circulation Financing and Phasing Program Fund is used to account for the revenues received from developer traffic impact fees and the expenditures for roadway improvements to accommodate new development.
Reserve:
An account used to indicate that a portion of fund equity is budgetarily restricted or assigend for a specific purpose.
Resources:
Total dollars available for appropriations including estimated revenues, fund transfers and beginning fund balances.
Revenue Bonds:
Bonds issued pledging future revenues, usually water or sewer charges to cover debt payments.
Safety/Quiet Zone:
A designated section or railroad including one or more consecutive public grade crossings in which trains are prohibited from sounding their horns.
Supervisory Control and Data Acquistion System:
Supervisory Control and Data Acquisition System refers to industrial control systems used to control infrastructure processes, facilitiy based processes, or industrial processes.
Service Charges:
Charges for specific services rendered.
Service Description:
A description of the services or functions provided by each department or division.
Sewer Connection Fee Reserve:
The Sewer Connection Fee Reserve is used to construct new facilities required to collect, transport and treat the additional sewage generated by new development.
Sewer Depreciation Reserve:
The Sewer Depreciation Reserve accounts for funds set aside for replacement or major repairs of Sewer Fund equipment or sewer system infrastructure.
Sewer Fund:
The Sewer Fund is used to account for the activities associated with the collection and treatment of wastewater by the City.
Solid Waste Management Fund:
The Solid Waste Management Fund is used to account for the activities associated with the collection, recycling, and disposal of residential and commercial solid waste within the City.
Glossary
San Onofre Nuclear Generating Station:
San Onofre Nuclear Generating Station.
South Coast Air Quality Management District:
AQMD is the air pollution control agency for all of Orange County and the urban portions of Los Angeles, Riverside and San Bernardino counties.
South Orange County Wastewater Authority:
Created on July 1, 2001 as a Joint Powers Authority with no taxing authority to plan for, acquire, construct, maintain, repair, manage, operate and control facilities for the collection, transmission, treatment and disposal of wastewater, the reclamation and use of wastewater for beneficial purposes, and the production, transmission, storage and distribution of non-domestic water. Special Assessment Bonds:
Bonds payable from the proceeds of special assessments.
Special Revenue Fund:
In governmental accounting, fund used to account for the proceeds of special revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specified purposes.
State Revolving Fund:
State program provides low-cost financing to public agencies for a wide variety of infrastructure projects.
State Water Resources Control Board:
Oversees the allocation of the state’s water resources to various entities and for diverse uses, from agriculture irrigation to hydo electrical power generation to municipal water supplies, and for safeguarding the cleanliness and purity of California’s water.
Storm Drain Depreciation Reserve:
The Storm Drain Depreciation Reserve accounts for funds set aside for replacement or major repairs of the Storm Drain Utility Fund equipment or storm drain system infrastructure.
Storm Drain Utility Fund:
The Storm Drain Utility Fund is used to account for the activities associated with the operation and maintenance of the City’s storm water collection system.
Street Improvement Fund:
The Street Improvement Fund is used to account for revenues and expenditures related to the rehabilitation of City streets.
Successor Agency:
The entity responsible for winding down the operations of the Redevelopment Agency.
Subsidence Claims:
Claims pending against the City’s General Liability Self-insurance Fund for land movement.
Subventions:
Revenues collected by the State which are allocated to the City on a formula basis. For example, motor vehicle and gasoline taxes.
Supplemental Appropriation:
An appropriation approved by the Council after the initial budget is adopted.
Supplies:
An expenditure classification for articles and commodities purchased for consumption or resale. Examples include office and operating supplies, fuel, power, water, gas, inventory or resale items and small tools and equipment.
Sworn:
Full-time Lifeguard and safety personnel. Fire & Police personnel are included within Police & Fire contracts with the County of Orange.
Glossary
Taxes:
Compulsory charges levied by the City, County & State for the purpose of financing services performed for the common benefit.
Transient Occupancy Tax:
Pursuant to the California State Revenue and Taxation Code Section 7280, a tax levied on any person occupying a hotel or motel room or renal property for less than 30 consecutive calendar days. The City’s levy is 10% of the rent charged to the occupant.
Transportation Bond Program:
Proposition 1B provides that a percentage of proceeds of State bonds be used to fund the mobility, safety, and air quality improvements of Street and highway maintenance, rehabilitation, reconstruction, or storm damage repair conducted by cities.
Unfunded Accrued Liability (UAL):
When a plan or pool’s Value of Assets is less than its Accrued Liability, the difference is the plan or pool’s Unfunded Accrued Liability (or unfunded liability). If the unfuned liability is positive, the plan or pool will have to pay contributions exceeding the Normal Cost.
Urban Runoff Management Plan:
A plan to identify and implement programs that will reduce or eliminate polluted discharges and improve local water quality. The plan consists of three main components; structural treatment projects, dry weather monitoring/illegal discharge detection and elimination and public education. The URMP is managed through the Clean Ocean Fund.
Vehicle License Fees:
An annual fee on the ownership of a registered vehicle in California paid to the Department of Motor Vehicles (DMV). The state retains authority over both the amount of revenues that are collected and the method of their distribution to local governments and the Legislature holds the authority to alter the level of VLF revenues.
Water Acreage Fee Reserve:
The Water Acreage Fee Reserve accounts for fees assessed to developers on all parcels of land developed and connected to the City’s water system. Expenditures from this fund are made to plan, design, inspect and construct new water system infrastructure and equipment.
Water Depreciation Reserve:
The Water Depreciation Reserve accounts for funds set aside for replacement or major repairs of Water Fund equipment or water system infrastructure.
Water Fund:
The Water Fund is used to account for the activities associated with the purchase, treatment, distribution and transmission of water by the City and its users.
Workers’ Compensation Fund:
The Workers’ Compensation Fund accounts for the cost to provide Workers’ Compensation insurance coverage to all City employees in compliance with State of California requirements.
Working Capital:
A financial calculation, which represents operating liquidity to the City. It is calculated as current assets minus current liabilities.
CITY OF SAN CLEMENTE
Long Term Financial Plan
Overview
The City of San Clemente’s Long Term Financial Plan (LTFP), first established in 1993, was created to assess the City’s current and projected financial condition and to outline actionable strategies for addressing emerging fiscal challenges. For decades, the LTFP was updated annually alongside the City’s budget, ensuring continuous alignment between long range planning and yearly resource decisions. With the implementation of the City’s first Biennial Budget for fiscal years 2024–2025 and 2025–2026, the LTFP transitioned to a biennial cycle as well. Throughout the year, City staff closely monitor revenue and expenditure performance, ensuring that the Long Term Financial Plan remains a reliable, data-driven tool. It builds upon prior year actuals and builds assumptions for the next five fiscal years for General Fund revenues and expenditures growth through Fiscal Year 2030-31.
Objective
The Long Term Financial Plan (LTFP) is San Clemente’s roadmap for sustaining long-term fiscal strength. Prepared biennially at the direction of the City Council, the LTFP brings together financial trend analysis, forecasting, reserve evaluation, and fiscal policy review of the City’s financial trajectory. More than a technical document and plan, it is a strategic tool that can be used to allow leaders and residents alike to understand emerging challenges and ensure the City’s resilience for years to come.
Process
Central to the LTFP is the process. It is important to show that the LTFP reflect a structurally balanced five-year financial outlook. When forecasts indicate a potential structural imbalance, the City must develop strategies to restore long term stability, and those strategies become an integral part of the LTFP’s adoption. Through this approach, the LTFP ensures that financial decisions are informed, proactive, and aligned with the City’s long term fiscal health. The flow chart below graphically describes the steps that go into the Financial Plan Process. Mobilization Phase The mobilization phase gets the organization ready for long term planning and forecasting. It focuses on building consensus, identifying service priorities or policy issues, and defining the purpose and scope of the plan. Analysis Phase The analysis phase produces the information needed for planning. Staff gathers data, review trends, analyzes reserves, summarizes fiscal policies, and prepares financial forecasts based on key assumptions. This information helps provide an understanding of past performance and anticipate future financial conditions.
Mobilization Analysis Decision Execution
Long Term Financial Plan Appendix 1
CITY OF SAN CLEMENTE
Long Term Financial Plan
Decision Phase In the decision phase, the City uses the analysis to determine what actions to take. This phase relies on participation from elected officials, staff, and the public during the Budget Workshop. Recommendations are presented to the City Council for consideration, along with potential actions to address financial needs or opportunities. Execution Phase In conjunction with the Biennial Budget, the City put decisions into action through the budget process, planning efforts, and performance measures. Staff incorporates Council and public input into budget actions, using decision packages or adjustments to realign program budgets. The public and the Council is presented with the proposed budget during the Budget Workshop in May. Based on the suggestions from the Budget Workshop, the Council reviews any changes and adopts the full budget plan during the June to determine any final changes.
Economic Outlook
Orange County’s economy is expected to see modest growth over the next few years. Job gains are projected to continue through 2027, with unemployment remaining stable at around 4.2% to
4.4%. Overall growth will be strongest in Leisure and Hospitality, while several sectors including Professional and Business Services and Information Technology are expected to decline. Business confidence has improved, and most business owners are hopeful in maintaining steady activity.
However, inflation, tariffs, geopolitical risks, and interest rates remain major concerns in balancing consumer pricing and sales. Inflation is generally expected to settle between 2.5-3.0% by late 2026.
Median household income in Orange County continues to rise, recently increasing to $136,600 in 2025 from $113,702 in 2023. However, the county’s poverty rate also increased, even as poverty levels declined or remained stable in other regions. While consumer spending continues to stabilize, rising household debt and delinquencies present ongoing risks. The end of FY 2024- 25 saw total taxable sales slightly falling, and continuing into the early months of FY 2025-26.
Currently, food service sales are starting to grow modestly and back on track to pre tariff era.
Housing affordability remains a significant challenge. Home prices are beginning to level off, but remain far above regional and state averages, with only a small share of households able to afford a median priced home. Rents continue to rise due to limited supply, reaching an average of $3,254 in 2025, well above both regional and national levels. The burden of high housing and insurance costs is limiting financial flexibility and curbing consumers’ willingness to spend on discretionary items.
The City will continue to monitor economic conditions at the national and state levels, recognizing that changes in policy, inflation, and financial markets can directly influence local finances. As noted earlier, the City’s conservative financial approach, prudent budgeting, and strong reserves provide some stability and flexibility during periods of uncertainty. These practices help the City respond to economic shifts while protecting essential services and Long Term Financial Plan Appendix 2
CITY OF SAN CLEMENTE
Long Term Financial Plan
supporting long term fiscal health. However, even with a balanced budget today, projected revenues struggle to keep pace with rising costs. This means that future projects, as well as the maintenance and replacement of aging infrastructure, will need to be carefully prioritized, planned and scheduled across upcoming budget cycles.
General Fund Outlook: Revenues, Expenditures and Reserves The City’s five-year outlook remains balanced for now, supported by conservative revenue forecasting and careful review of prior year spending to anticipate future cost increases.
However, this balance is increasingly fragile. Revenues are not keeping pace with rising expenditures, particularly in major contract areas. Police services now account for 29% of the General Fund, and the Orange County Fire Authority contract represents another 17%. As these contract costs continue to grow - due to increased fire hazards, operational and overhead costs, and increased needs from the community - the City’s capacity to fund other priorities becomes increasingly constrained.
This limited flexibility has already reduced the City’s ability to adequately replenish the Capital Improvement Program, which is an essential source for maintaining and replacing aging infrastructure. While the current budget sustains existing service levels with current staffing, it does not provide the sustained funding needed to keep pace with long term infrastructure needs or prepare the City for unanticipated expenses.
The expiration of the Clean Ocean Fee underscores this challenge. The fee once generated approximately $2.3 million annually to support maintenance and capital improvements under the Urban Runoff Management Plan. This fee was not renewed during the 2020 election cycle and ballot measure; resulting in the dedicated revenue stream disappearing. This forces the General Fund, Storm Drain Fund, and Solid Waste Fund to absorb those costs. This shift further strains limited discretionary resources and highlights the vulnerability created when key revenue sources lapse without replacement.
With minimal operating surplus, which can easily be consumed by unplanned emergencies or urgent projects, the City must take a hard look at alternative revenue options. This includes reassessing contract terms, evaluating new or updated fees similar to the Clean Ocean Fee and the Storm Drain Fee which has not increased since its inception in 1993, as well as, revisiting overall funding priorities. Without proactive action, the City risks being unable to maintain essential infrastructure, respond to emergencies, or sustain service levels in the years ahead.
Ensuring long term fiscal stability will require a deliberate strategy to diversify and strengthen the City’s revenue base.
Long Term Financial Plan Appendix 3
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Long Term Financial Plan
General Fund Revenues
General Fund Revenues are composed of the following categories: Taxes, Permits & Fees, Intergovernmental, Service Charges, Fines, Interest & Rents, Miscellaneous Income, Interfund Transfers and Transfers In from other funds. Each category has multiple components that will be discussed below. General Fund revenues are projected to increase an annual average of about
1.965% overall, mostly due to a projected year over year increase in taxes and service charges.
Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Taxes $ 70,005,160 $ 72,411,760 $ 74,222,054 $ 76,077,605 $ 78,359,934 Permits & Fees 1,527,380 1,546,480 1,577,410 1,608,958 1,641,137 Intergovernmental 718,430 664,430 463,000 463,000 463,000 Service Charges 8,144,180 8,196,810 8,270,581 8,345,017 8,470,192 Fines 626,750 637,300 646,860 656,562 669,694
Interest & Rents 4,055,570 4,365,740 4,465,740 4,565,740 4,665,740 Miscellaneous Income 70,180 71,050 71,050 71,050 71,050 Interfund Revenue 3,160,870 3,160,870 3,192,479 3,224,403 3,256,648 Total Revenues $ 88,308,520 $ 91,054,440 $ 92,909,173 $ 95,012,336 $ 97,597,393 Revenues
Long Term Financial Plan Appendix 4
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Long Term Financial Plan
Taxes
Property Tax - Property tax is the City’s largest and most dependable General Fund revenue source. Under California’s property tax system, the 1% countywide levy is shared among cities, schools, special districts, and other agencies. San Clemente receives $0.16608 of every property tax dollar collected, an allocation that provides roughly 52% of all General Fund revenues. This structure is rooted in Proposition 13, which caps property taxes at 1% of a property’s purchase price and limits annual assessed value increases to no more than 2%. These limits ensure predictable taxes for property owners, but they also restrict how quickly local revenues can grow.
In Orange County, assessed values are updated each January, and property taxes are paid in two installments, November and April. During economic downturns, the County Assessor may reduce assessed values, which directly lowers the City’s property tax revenue. Historically, San Clemente’s property tax revenues have grown at an average rate of 3.96% per year, driven largely by reinvestment in existing properties and occasional turnover. As a fully built out community with limited opportunities for new development, the City’s property tax base expands primarily when properties change ownership or undergo reassessment due to construction. This steady but moderate growth illustrates the reliability and the limitations of property tax as a revenue source. While it provides a stable foundation for the General Fund, it does not keep pace with rising service demands, escalating contract costs, or the long-term needs of aging infrastructure.
As a result, the City must increasingly rely on other revenue sources to maintain service levels and fund future capital needs.
Transient Occupancy Taxes - Hotels and Short-Term Rentals in the City of San Clemente collect a 10% tax that is applied and collected as part of the room rental costs. That Transient Occupancy Tax (TOT) of 10% is then remitted to the City on a monthly basis from hotels and on a quarterly basis from Short Term Rentals. There are about 27 hotels and 153 Short Term Rentals in the City, all of which contribute to 3.5% of General Fund revenue via the collection of TOT. In September 2025 the City Council approved of a new hotel with a rooftop restaurant near the Outlets of San Clemente, in addition to three other smaller hotel projects that are currently proposed within the City. However, these projects are not included in this projection as the exact completion timelines are uncertain. Projections for TOT remain conservative since it is less predictable than other revenue sources as it is contingent on market demand and competition from other neighboring cities.
Sales Tax - The City receives 1% of taxable sales within San Clemente, in addition to the Use Tax from the Orange County pool. Sales Tax is the City’s second largest source of revenue for the General Fund, at 14.4%. Sales tax fluctuates based on several national and local economic drivers and conditions that dictate consumer spending. San Clemente’s largest industry groups are General Consumer Goods and Restaurants and Hotels. Overall, the City has seen a minor increase of 2.6% growth since 2024. Since sales tax is closely tied to inflation driven price increase, it is important to recognize that higher prices reduce discretionary spending. When households face rising costs for essentials, the natural tendency is to cut back on non-essential spending. As a Long Term Financial Plan Appendix 5
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result, higher prices do not automatically translate into collecting higher sales tax revenue for the City.
Other Taxes - Franchise Fees and Business License Fees are cyclical revenue sources because they depend on payments from companies that hold exclusive rights to provide services within the City. While most franchise fee categories remain stable, revenues from cable providers have declined slightly as more households shift to streaming services. Regarding Business License Fees, the City’s new business license software has strengthened internal processes and made it easier for local businesses to pay online, improving efficiency and compliance. Together, these revenues remain steady.
Permits & Fees
Permits and Fees revenue types make up about 2% of the City’s revenue for the General Fund. It is comprised of construction related permits such as building, electrical, mechanical, plumbing, grading, encroachment, alarm and miscellaneous permits. Revenues for this category fluctuate year over year contingent on the amount of construction that occurs within the City.
Intergovernmental
The recent separation of General Fund operating and capital improvement funds has reduced year to year fluctuations in this revenue line, making it more stable and easier to track. The grants captured in this category are generally reliable and make up about 0.5% of General Fund revenues. Revenues come from other governmental agencies and municipalities through state and federal programs. While these revenues can vary based on funding cycles and program availability, they remain a consistent source of support for the City’s operations.
Service Charges
Service Charges represent a diverse set of fees collected for services provided by the City, including planning and development fees, general government fees, weed abatement, ambulance services, marine safety, parking meters and permits, inspection fees, and recreation programs. These charges make up 9% of General Fund revenues, with recreation fees contributing the largest share. Revenue from this category is expected to grow, driven in part by recently approved recreation fee increases. In addition, the City will assume management of the Beach Club in FY 2027, creating new opportunities for recreation program expansion and additional revenue. Together, these factors strengthen the long term outlook for Service Charges as a stable and gradually increasing revenue source.
Long Term Financial Plan Appendix 6
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Fines
Fines make up 1% of the General Fund revenue and includes fine and code violations. There is minimal increase in this line revenue category since fine and code violations have been relatively unchanged for several years.
Interest & Rents
Interest and Rents make up 5% of General Fund revenue and provide a steady, though modest, source of funding. Interest earnings remain consistent because the City’s investment policy aligns investment maturities with annual cash-flow needs, helping stabilize returns. Rental income from City owned properties is more variable, as revenues can fluctuate when leases expire and vacancies occur before new tenants are secured. While these shifts are expected, they can create noticeable year to year changes. Overall, this revenue category remains stable, with interest providing predictability and rental income reflecting normal market turnover.
Miscellaneous Income
Miscellaneous Income represents a very small portion of General Fund revenue, about 0.07% and includes one-time donations, reimbursements from EV charging stations, and other miscellaneous reimbursements. Because this category relies heavily on irregular, non-recurring items, the amount collected can vary significantly from year to year. One-time donations in particular can create noticeable swings, making this revenue source inherently unpredictable and not suitable for long term planning.
Interfund Revenue
Interfund Revenue reflects the General Fund’s cost-allocation program, which reimburses the General Fund for the citywide services it provides to other funds. These charges recapture the cost of essential internal services, such as Human Resources, Risk Management, Finance, Payroll, Accounts Payable, Accounts Receivable, the City Clerk’s Office, general administration, utilities, and maintenance, each of which support all City operations. By allocating these costs across the funds that benefit from them, the City ensures a more accurate representation of service delivery costs and maintains a fair and transparent financial structure. Recovery of costs are based upon prior year actual expenditures and make up 3% of the General Fund revenue.
Long Term Financial Plan Appendix 7
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Long Term Financial Plan
General Fund Expenditures
The City’s General Fund supports nearly everything residents experience day to day, from police and fire protection to parks, beaches, community programs, and the teams that keep our streets, facilities, and neighborhoods running smoothly. Over the next five years, these costs are expected to grow by an average of 2.52% each year. While this growth is manageable, three areas, Contractual Services, Personnel Costs, and Unfunded Accrued Liability (UAL), continue to stand out as the primary drivers of the City’s budget pressures. These categories reflect the essential services residents rely on most, but they also represent the largest share of rising expenses. As the City continues to prioritize safety, service quality, and a responsible level of staffing, tools like the Section 115 Pension Trust become increasingly important. By planning ahead and setting aside funds for future obligations, the City can help stabilize long term costs and protect its ability to maintain core services, invest in infrastructure, and respond effectively to emergencies.
Contractual Services
Public safety remains one of the community’s highest priorities, and the City continues to invest in maintaining a safe and well served environment. As part of this commitment, four additional Orange County Sheriff’s Department (OCSD) Deputies were approved by City Council for FY2024- 25 and FY2025-26. These Deputies have now been fully onboarded as of FY 2025–26. While these positions strengthen service levels, there continues to be a substantial impact on the General Fund. Actual future costs of the OCSD contract depend on countywide labor agreements and the City’s desired staffing levels. Historically, annual increases have averaged 4–5%, reflecting both rising personnel costs and increasing service demands to the community.
For fire services, the Orange County Fire Authority (OCFA) contract is projected to increase by approximately an average of about 1.2% per year over the next five years, which is lower than Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Personnel $ 25,317,100 $ 26,580,660 $ 26,925,493 $ 27,552,214 $ 28,208,531 Supplies 1,547,110 1,583,880 1,620,784 1,658,549 1,697,193 Contractual Services 50,779,880 52,283,590 53,974,920 55,292,034 56,716,836 Other Charges 1,795,470 1,668,910 1,700,000 1,715,000 1,730,000 Capital Outlay 1,370,000 1,265,000 1,300,000 1,325,000 1,370,000 Interdepartmental Charges 5,484,340 5,613,070 5,725,331 5,839,838 5,898,236 Debt Service 1,543,000 1,563,000 1,600,000 1,625,000 1,650,000 Total Expenditures $ 87,836,900 $ 90,558,110 $ 92,846,529 $ 95,007,635 $ 97,270,796 Expenditures
Long Term Financial Plan Appendix 8
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the historical average. Contributions to OCFA’s capital and vehicle replacement reserves are also included in the OCFA contract.
Contractual services also include CalPERS pension costs for former City public safety personnel and the continued operation of two year-round ambulances under the City’s private ambulance agreement. Together, these public safety contracts form one of the City’s largest and fastest growing expenditure categories.
Personnel Costs and Benefits
Citywide salary and benefit costs are projected to increase an average amount of 3% annually over the next five years. The current labor agreements extend through FY 2027–28, and future negotiations will determine any additional adjustments.
Benefit costs vary by category, generally ranging from 0-5% growth, with the largest increases occurring in medical insurance and retirement contributions. Retirement costs are expected to stabilize over time as more employees fall under PEPRA and as legacy obligations decline.
To maintain service levels with a lean workforce, departments have reviewed staffing structures, redistributed responsibilities, and updated classifications to align duties with appropriate compensation. Even with these adjustments, the City continues to operate with a lean and strategically structured workforce relative to service expectations.
Unfunded Accrued Liability (UAL)
The City’s pension obligations include an Unfunded Accrued Liability, which reflects pension benefits already earned by employees that are not fully funded by CalPERS. CalPERS anticipates a 6.8% return over a long period of time. UAL growth is influenced by stock market performance, changes in actuarial assumptions, and demographic trends such as longer retiree lifespans. These factors can create sudden increases in required contributions, adding volatility to the City’s long term financial planning.
To help manage these costs, the City established a PARS Section 115 Pension Trust, with an initial investment of $1.2 million in FY 2025-26. This trust allows the City to set aside funds specifically for future pension obligations, invest them for potentially higher returns than standard reserves, and retain full local control for when and how the funds are used. During periods of economic uncertainty, the trust can be used to offset UAL payments and protect the General Fund.
Long Term Financial Plan Appendix 9
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Long Term Financial Plan
General Fund Reserves
The City’s Fund Balance and Reserve Policies require that the General Fund maintain emergency reserves equal to 18% of annual operating expenditures. This reserve acts as the City’s financial safety net, and is designed to provide stability during a major economic downturn or to offset a significant, unexpected loss of revenue that cannot be anticipated during the budget process.
Maintaining this reserve ensures the City can continue delivering essential services even when faced with unforeseen challenges.
If the reserve balance ever falls below the required level, staff must develop and present a plan to the City Council outlining strategies to restore the reserve. This ensures transparency and reinforces the City’s commitment to long-term fiscal stability.
The new Fiscal Policy being recommended for adoption with the Proposed Budget for FY 2026- 27 and FY 2027-28, suggests that in addition to the 18% emergency reserve, the General Fund also maintain an additional 2% in unassigned fund balance, which provides day to day flexibility for routine operational needs. After these required reserves are met, any remaining fund balance is carefully evaluated. Staff then brings recommendations to the City Council on how best to use these funds after the fiscal year has been audited. Surplus unassigned fund balance may then be allocated to the Capital Improvement Fund, strengthening the City’s PARS Section 115 Pension Trust, or making an additional discretionary payment toward the City’s Unfunded Accrued Liability with CalPERS.
Both options support the City’s long term financial health. Investing in the Section 115 Trust helps prepare for future pension cost increases, while additional payments toward the UAL reduce long term interest costs. These strategies ensure that surplus funds are used responsibly to protect essential services, maintain infrastructure, and preserve the City’s financial resilience for years to come.
Long Term Financial Plan Appendix 10
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Long Term Financial Plan
Capital Improvement Fund
The City’s Capital Improvement Program (CIP) outlines the major infrastructure projects planned for the coming years. Projects scheduled for FY 2026–27 and FY 2027–28 are fully budgeted, while projects identified for FY 2028–29 through FY 2030–31 represent future needs that staff have identified but potential funding sources are still being evaluated.
To improve transparency and strengthen financial management, all General Fund capital projects will now be centralized within the CIP Fund. This structure allows the City to clearly separate day to day operating costs from long term capital investments, giving residents and decisionmakers a clearer picture of how resources are allocated.
The chart below reflects the full anticipated cost of future projects and shows how the CIP Fund balance changes over time as General Fund contributions are utilized. At the end of each fiscal year, the City will review the General Fund’s ending balance to ensure required reserves are met.
Any remaining unassigned fund balance may then be transferred into the CIP Fund to support capital needs or invested to strengthen the City’s Section 115 Pension Trust.
Because future funding sources are still being explored, some projects may be rescheduled to later fiscal years depending on available resources and community priorities. While General Fund surpluses remain the primary source for capital funding, staff continue to aggressively pursue grants and outside funding opportunities to support the City’s infrastructure needs and maintain the high-quality amenities valued by residents, visitors, and businesses.
Significant upcoming projects include Sand Replenishment, Del Mar Phase I Undergrounding, Calafia Complete Streets, Golf Course Bunker and Irrigation System Replacement, Water Reclamation Plant Boiler Replacement, Poche Beach Water Reclamation, Pico Booster Pump Station Pump Replacement, and Reata Pump Station Rehabilitation. These investments reflect the City’s commitment to maintaining safe, reliable, and resilient infrastructure for the community.
Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Beginning Balance 6,256,910 $ $ 9,361,910 $ 9,280,910 $ 2,445,910 $ 1,205,910 Transfers in 5,915,000 1,169,000
Revenues 2,470,000 39,560,000 370,000 14,285,000 4,285,000 Expenses 5,280,000 1,620,000 18,520,000 5,525,000 5,525,000 Grant 23,125,000 10,000,000
Undetermined 4,750,000
Ending Balance 9,361,910 $ $ 9,280,910 $ 2,445,910 $ 1,205,910 $ (34,090) Long Term Financial Plan Appendix 11
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Long Term Financial Plan
Enterprise Funds
Water Fund
The City’s Water Fund is responsible for providing safe, reliable potable and recycled water that meets all State Water Resources Control Board and Federal Safe Drinking Water Act standards.
To manage this system effectively, the Water Fund is organized into several sub funds that support daily operations, long term infrastructure needs, and regional water system obligations.
The Water Operating Fund covers routine system operations, including treatment, pumping, testing, and customer service. To ensure the City can replace aging equipment and maintain critical infrastructure, a portion of operating revenues is transferred into the Water Depreciation Reserve. This reserve functions as the system’s long term reinvestment mechanism. Depreciation contributions are calculated using a Water Asset Model, which assigns funding based on the useful life of major assets. These funds are then used to replace equipment and rebuild infrastructure when it reaches the end of its service life.
In addition to depreciation funding, the Water Fund includes the Water Acreage Fee Reserve, which is dedicated to new infrastructure needed to support development. These fees ensure that growth related improvements are funded by developers rather than existing ratepayers. The Water Other Agency Reserve sets aside funds for the City’s share of repair and replacement costs for Joint Regional Water Supply System (JRWSS) facilities.
The Water Fund also carries long term debt. In 2013, the City secured a $14.37 million State Revolving Fund loan at 2.2% interest to expand the recycled water system, including treatment plant upgrades, pipelines, and pump stations. Repayment began in 2015 and is funded through Water Fund revenues.
To ensure the Water Fund remains financially stable, the City completed a Water Rate Study in 2026. The study found that existing rates were no longer sufficient to cover rising wholesale water costs, energy expenses, operational needs, and growing infrastructure reinvestment requirements. It also identified that the prior rate structure did not adequately recover fixed costs, creating revenue instability. As a result, the study recommended a 9.8% rate increase effective March 1, 2026, followed by 3.5% annual increases from 2027 through 2030. These adjustments help fund essential capital improvements such as pipeline rehabilitation, pump station upgrades, storage maintenance, and water quality projects and support long term supply planning, including evaluation of the Doheny Desalination Project. The chart below includes a Capital Outlay section which identifies budgeted and future capital improvement projects within the Water Fund that might be funded by grants or broken down for future years. This is to simply illustrate projects identified by Staff. City Staff will not enter into a project that will create a negative fund balance. Including it in this LTFP is to show transparency and readiness while fully Long Term Financial Plan Appendix 12
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expecting that grants, phased implementation, or revised project scopes can align expenditures with available resources.
Sewer Fund
The City’s Sewer Fund exists to operate and maintain San Clemente’s sanitary sewer collection and treatment system, ensuring reliable wastewater service that protects public health and meets all local, state, and federal regulatory requirements. Sewer service charges are budgeted at $12.2 million in FY 2026-27 and $12.7 million in FY 2027-28 and provide the primary funding source for these operations. These charges are fixed monthly fees based on meter size and water use levels, which reflect typical indoor wastewater generation. Under an existing agreement, the Santa Margarita Water District also contributes approximately $1 million annually toward wastewater treatment and recycled water services.
To manage both daily operations and long term infrastructure needs, the Sewer Fund is organized into several sub funds. The Sewer Operating Fund supports routine activities such as pipeline maintenance, pump station operations, treatment processes, and regulatory compliance. To ensure the City can replace aging equipment and rehabilitate critical infrastructure, the Operating Fund transfers $3.2 million annually into the Sewer Depreciation Reserve, along with $168,000 annually dedicated to depreciation for regionally shared facilities. These reserves function as long term reinvestment tools, ensuring funds are available when major components reach the end of their useful life.
Additional reserves support growth and regional obligations. The Sewer Connection Fee Reserve funds new infrastructure needed to support development, ensuring that growth related improvements are paid for by developers rather than existing ratepayers. The Sewer Other Agency Reserve sets aside funds for the City’s share of repair and replacement costs for regional Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Beginning Balance $ 13,385,280 $ 11,990,360 $ 9,343,430 $ 4,296,562 $ 3,243,848 Revenues 35,315,140 34,931,750 35,979,703 37,059,094 38,170,866 Expenditures 36,710,060 37,578,680 41,026,571 38,111,808 40,354,650 Personnel 5,113,420 5,387,540 5,656,917 5,939,763 6,236,751 Supplies 13,796,980 15,039,070 16,392,586 17,867,919 19,476,032 Contractual Services 6,069,310 6,419,680 6,676,467 6,943,526 7,221,267 Other Charges 3,789,950 3,795,720 3,800,000 3,810,000 3,820,000 Capital Outlay 1,500,000 3,500,000 5,000,000 0 0
Interfund Payments 5,539,780 2,536,060 2,600,000 2,650,000 2,700,000 Debt Service 900,620 900,610 900,600 900,600 900,600
Ending Fund Balance $ 11,990,360 $ 9,343,430 $ 4,296,562 $ 3,243,848 $ 1,060,064 Water Fund
Long Term Financial Plan Appendix 13
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facilities, including the Land Outfall and the San Juan Creek Ocean Outfall operated by the South Orange County Wastewater Authority.
A Cost of Service Study completed in FY 2023-24 confirmed that sewer fees must be reviewed during the upcoming two year budget cycle to ensure they continue to reflect the true cost of service and comply with Proposition 218. Rising regulatory requirements, aging infrastructure, and increasing operational costs continue to place pressure on the Sewer Fund, making periodic rate adjustments necessary to maintain system reliability. A Cost of Service Study will be conducted in the current biennial budget for FY 2026-27 and FY 2027-28.
Together, these funding mechanisms ensure that San Clemente’s sewer system remains safe, compliant, and financially sustainable. By balancing operational needs, long-term capital planning, and fair cost distribution, the Sewer Fund protects public health and supports the community’s infrastructure for years to come The chart below includes a Capital Outlay section which identifies budgeted and future improvement projects that are to be paid out of the Sewer Fund. These are projects that have been identified by Staff, and while funding resources are being researched, City Staff will not enter into a project that will create a negative fund balance.
These line items are a planning placeholder tool, and not a reflection of financial distress.
Storm Drain
The City of San Clemente’s Storm Drain Fund was established to address deficiencies in the community’s drainage infrastructure and to ensure compliance with state and federal water quality mandates. In 1993, the City’s Long Term Financial Plan reaffirmed that storm drain repair and replacement needs remained unfunded, prompting the creation of a dedicated Storm Drain Fee to support essential maintenance and capital improvements. The Storm Drainage Fee, which Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Beginning Balance $ 2,276,960 $ 2,174,520 $ 4,163,870 $ 4,548,975 $ 6,321,348 Revenues 16,863,370 17,426,030 17,861,681 18,308,223 18,765,928 Expenditures 16,965,810 15,436,680 17,476,576 16,535,849 17,123,812 Personnel 3,934,320 4,142,510 4,349,636 4,567,117 4,795,473 Supplies 1,295,600 1,334,200 1,454,278 1,585,163 1,727,828 Contractual Services 3,615,190 3,627,560 3,772,662 3,923,569 4,080,512 Other Charges 3,471,860 3,473,520 3,800,000 3,810,000 3,820,000 Capital Outlay 2,742,260 950,000 1,500,000 0 0
Interfund Payments 1,906,580 182,990 2,600,000 2,650,000 2,700,000 Ending Fund Balance 2,174,520 $ $ 4,163,870 $ 4,548,975 $ 6,321,348 $ 7,963,464 Sewer Fund
Long Term Financial Plan Appendix 14
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has not increased since implementation in 1993, authorizes the City to set up a storm drainage facility account and use fee revenue for the design, construction, operation, maintenance, improvement, and replacement of the City’s storm drainage facilities, along with all related costs.
With the expiration of the Clean Ocean Fee, the Storm Drain Fund was forced to absorb responsibilities and costs that were never part of its original design.
Today, the Storm Drain Fund supports a broad range of critical services required under the Clean Water Act and the State Water Resources Control Board’s NPDES MS4 Storm Water Permit. These include operating, maintaining, and inspecting approximately 77 miles of storm drain lines and 1,500 catch basins. These fees allow maintenance of water quality facilities such as the Segunda Deshecha Canada system and multiple vortex separation units, administer storm drain capital project, and respond to municipal code violations related to stormwater. The fund also supports major water quality initiatives, including the Poche Beach Water Reclamation Project. However, the Storm Drain Fee, which is charged as a flat monthly rate to residential properties and acreage based for non-residential parcels, has not been adjusted for inflation since inception, generates only about $1.18 million annually in FY 2026-27 and FY 2027-28. This revenue is no longer sufficient to cover the expanded regulatory and operational responsibilities now placed on the fund.
As a result, the Storm Drain Fund faces a structural deficit that threatens both regulatory compliance and long-term infrastructure stability. Costs previously funded by the Clean Ocean program, such as NPDES permit fees, inspections, Poche operations, and portions of staff positions, have now shifted into the Storm Drain Fund, pushing expenditures far beyond its revenue capacity. To maintain uninterrupted service, the City must transfer $950,000 in FY 2026-27 and $1,150,000 in FY 2027-28 from the General Fund, diverting resources from other essential municipal services. At the same time, the fund must provide upfront financing for major capital projects, including the $600,000 Calle Doncella Outlet Improvements, the MO2 Culvert at Pico and El Camino Real, and the $5.1 million Poche Beach Water Reclamation Project. Staff are seeking alternative sources of funding through grants. The Storm Drain Depreciation Reserve, created in 2002 to ensure timely replacement of equipment and infrastructure, is also strained as aging assets require more frequent and costly rehabilitation.
The mismatch between the fund’s revenue structure and its mandated responsibilities makes reassessment unavoidable and necessary. The Storm Drain Fee is not indexed to inflation, does not reflect modern regulatory requirements, and cannot sustain the level of service necessary to protect public safety, prevent flooding, and maintain coastal water quality. Without structural changes, the City risks continued reliance on General Fund subsidies, deferred maintenance, regulatory non-compliance, and escalating long term costs. To restore financial stability and ensure the City can meet its legal and environmental obligations, San Clemente must evaluate alternatives such as rate modifications, new or supplemental fees, debt financing, expanded grant funding, or reallocation of existing resources.
Long Term Financial Plan Appendix 15
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Long Term Financial Plan
Solid Waste Management Fund
The City of San Clemente’s Solid Waste Fee exists to ensure that the community meets state mandated waste diversion requirements, maintains effective recycling programs, and provides essential street sweeping services that protect local neighborhoods and coastal water quality.
The Solid Waste Fund supports a broad range of responsibilities, including: implementing recycling and waste reduction programs required under AB939, AB1826, AB1594, and SB1383, providing public education to residents, businesses, and schools, participating in regional solid waste planning, administering the City’s solid waste and recycling collection contract, enforcing City codes and ordinances, and overseeing street sweeping operations that remove debris before it reaches storm drains and the ocean.
The current state of the Solid Waste Fund reflects a significant structural shift following the expiration of the Clean Ocean Fee in 2020. Street cleaning costs that were previously funded through the Clean Ocean program have now been absorbed into the General Fund, Storm Water and Solid Waste Fund, which relies on a street sweeping fees to fund operational costs. However, this fee, combined with citation revenue, is only able to support a reduced level of service compared to what the Clean Ocean Fee previously funded. As a result, the City is actively reviewing a revised street sweeping program for future consideration. Despite these constraints, the Solid Waste Fund remains essential to the City’s mission to protect and improve the local environment by maximizing recycling, minimizing waste, and ensuring compliance with increasingly stringent state diversion mandates. The fund’s current revenue structure allows the City to maintain baseline services, but its expanded responsibilities and reliance on fines and fixed fees highlight the need to reassess long term funding strategies to ensure continued compliance, environmental protection, and service quality. For the City to meet its obligations and maintain Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Beginning Balance $ (324,990) $ (416,770) $ (1,147,728) 42,480 $ $ (2,404,794) Revenues 3,722,050 7,677,050 1,328,000 1,328,000 1,353,000 Expenditures 3,813,830 7,217,800 2,518,208 2,585,066 2,655,757 Personnel 543,050 569,070 588,987 609,602 630,938
Supplies 10,760 11,020 11,300 11,500 11,750
Contractual Services 533,410 540,980 549,095 571,058 593,901 Other Charges 1,146,500 1,148,750 1,151,048 1,153,350 1,155,656 Capital Outlay 1,404,000 4,750,000 0 0 0
Interfund Payments 176,110 197,980 217,778 239,556 263,511 Ending Fund Balance (416,770) $ $ (1,147,728) 42,480 $ $ (2,404,794) $ (3,707,550) Storm Drain Fund
Long Term Financial Plan Appendix 16
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Long Term Financial Plan
a clean, sustainable community, the Solid Waste Fee must remain aligned with the City’s growing regulatory and operational demands, making periodic evaluation necessary.
Golf Fund
San Clemente’s championship municipal golf course remains one of the community’s most valued recreational amenities, offering residents and visitors a well-maintained, sustainable, and financially self-sufficient public golf course. The Golf Fund, which operates within the City’s Beaches, Parks, and Recreation department, supports all course operations, maintenance, and long term capital needs. Its mission is to provide high quality recreational golf opportunities, maintain the course at a Level B standard during peak season, and oversee the pro shop that is currently operated by a third-party vendor.
Looking ahead, the Golf Fund is preparing for several important capital and operational initiatives. While not all projects are guaranteed to move forward, highlighting them demonstrates how the City is proactively investing in facility improvements and the long term feasibility and sustainability for our golf operations. A major long term project identified in the Golf Master Plan is the Golf Course Bunker and Irrigation System Replacement - a significant investment that will enhance playability, water efficiency, and long term sustainability. Additional budgeted items for FY 2026-27 and FY 2027-28 include Golf Course Tree Replacement and Canopy Restoration, Golf Equipment, and continued support from a golf course agronomy consultant to ensure the course remains healthy and competitive.
To support these needs, the course continues to generate strong revenue through its tiered fee structure for residents, non-residents, seniors, and weekday/weekend play. Based on an estimated 80,000 rounds per year, the City anticipates $3.1 million in golf fees and $122,960 in registration fees in each of the next two fiscal years. An additional $866,000 annually is expected Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Beginning Balance $ 402,340 $ 285,960 $ 18,320 $ (169,596) $ (385,169) Revenues 1,069,100 877,560 977,560 1,000,000 1,110,000
Expenditures 1,185,480 1,145,200 1,165,476 1,215,573 1,268,225 Personnel 161,650 174,520 180,628 186,950 193,493
Supplies 17,650 18,140 11,300 11,500 11,750
Contractual Services 902,580 849,400 862,141 896,627 932,492 Other Charges 20,870 20,890 20,932 20,974 21,016
Capital Outlay 0 0 0 0 0
Interfund Payments 82,730 82,250 90,475 99,523 109,475
Ending Fund Balance 285,960 $ $ 18,320 $ (169,596) $ (385,169) $ (543,394) Solid Waste Fund
Long Term Financial Plan Appendix 17
CITY OF SAN CLEMENTE
Long Term Financial Plan
from concessionaire and pro shop operations. These revenues help maintain the course’s financial stability and fund ongoing improvements.
Operational changes in the upcoming years reflect both cost pressures and efficiencies.
Personnel costs are projected to rise due to merit increases and staffing adjustments, while supply costs - horticultural materials in particular - are expected to increase by approximately $18,000. Contractual services will decrease compared to FY 2023-24, when vacancies and tree damage required additional contracted support. Utility costs, including water and electricity, are budgeted to increase. Debt service obligations will decline, as the internal loan was fully repaid in FY 2024-25. Interdepartmental charges will rise to reflect updated General Fund and fleet overhead allocations.
While long range financial projections show a negative fund balance in future years, this is not the result of operational instability. Instead, it reflects the inclusion of large capital projects, such as bunker renovations and irrigation system replacement, that is in the City’s plan for the next 5 years. These projects are often funded through grants, phased construction, or external funding sources, which are not yet reflected in the preliminary projections. As funding sources are secured or project timelines are adjusted, the negative balance is expected to be eliminated.
Regardless which fund, City Staff will not enter into a project, that creates a negative fund balance. The projected deficit is a planning placeholder tool, not an indication of financial distress. The City intentionally includes these long term needs in the forecast to ensure transparency and readiness, while fully expecting that grants, phased implementation, or revised project scopes will align expenditures with available resources.
Budget Budget Projected Projected Projected
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
Beginning Balance $ 7,504,460 $ 7,389,210 $ 5,462,570 $ 540,596 $ (1,455,522) Revenues 6,233,150 6,227,150 6,230,150 6,235,000 6,330,000 Expenditures 6,348,400 8,153,790 11,152,124 8,231,118 8,313,048 Personnel 1,318,190 1,375,950 1,424,108 1,473,952 1,525,540 Supplies 292,870 309,950 11,300 11,500 11,750
Contractual Services 875,050 702,480 713,017 741,538 771,199 Other Charges 214,270 214,270 214,699 215,128 215,558
Capital Outlay 935,000 3,035,000 7,000,000 4,000,000 4,000,000 Interfund Payments 2,713,020 2,516,140 1,789,000 1,789,000 1,789,000 Ending Fund Balance 7,389,210 $ $ 5,462,570 $ 540,596 $ (1,455,522) $ (3,438,570) GOLF
Long Term Financial Plan Appendix 18