Agenda packet, regular meeting, second session — San Clemente City Council, June 2, 2026 (part 1 of 4)

Agenda
JUNE 2, 2026 REGULAR CITY COUNCIL MEETING AGENDA.PDF
Meeting Materials
8A - PUBLIC HEARING INTRODUCTION (FIRST READING) OF AN ORDINANCE TO AMEND SAN CLEMENTE MUNICIPAL CODE SECTIONS 17.28.270, ADUS.PDF
8B - PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE BUDGET FOR FISCAL YEAR 2026-27 AND 2027-28 .PDF
10A - MAJOR BROWN ACT UPDATES UNDER SENATE BILL 707 (DURAZO) OPEN MEETINGS MEETING AND TELECONFERENCE REQUIREMENTS.PDF 10B - 2026 COUNTY OF ORANGE POINT-IN-TIME COUNT.PDF
10C - RESOLUTION 26-108 ADOPTING CITYWIDE AUTOMATED LICENSE PLATE READER (ALPR) USAGE AND PRIVACY POLICY.PDF
11A(1) - CITY COUNCIL SPECIAL AND REGULAR MEETING MINUTES OF MAY 5, 2026.PDF
11A(2) - CITY COUNCIL SPECIAL AND REGULAR MEETING MINUTES OF MAY 19, 2026.PDF
11A(3) - CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES OF MAY 26, 2026.PDF
11B(1) - BEACHES, PARKS AND RECREATRION REGULAR MEETING MINUTES OF APRIL 14, 2026.PDF
11C(1) - CERTIFICATION OF WARRANTS 5.15.26.PDF
11C(PR1) - PAYROLL CERTIFICATION SHEET 5.10.26.PDF
11D - ADOPT ORDINANCE NO. 1809 (SECOND READING) RELATED TO MAYOR TERM LIMITS.PDF
11E - CONSIDERATION OF A RESOLUTION TO ACCEPT AND FILE A NOTICE

OF COMPLETION FOR THE LIFEGUARD TOWERS REPLACEMENT
PROJECT.PDF
11F - RESOLUTION TO ACCEPT AND FILE A NOTICE OF COMPLETION FOR THE VISTA HERMOSA SPORTS PARK TURF REPLACEMENT.PDF
11G - RESOLUTION TO ACCEPT AND FILE A NOTICE OF COMPLETION FOR THE CAMINO MIRA COSTA MEDIAN ISLAND.PDF
11H - SECOND AMENDMENT TO THE PROFESSIONAL SERVICES

AGREEMENT FOR SUNDAY FARMERS MARKET THROUGH SEPTEMBER
2026.PDF
11I - SUPPLEMENTAL APPROPRIATION FOR AQUATIC CHEMICAL

EXPENDITURES FOR THE SAN CLEMENTE AQUATICS CENTER AND OLE HANSON BEACH CLUB.PDF
11J - RESOLUTION TO DESIGNATE FISCAL YEAR FY 2026-2027 STREET REHABILITATION PROJECTS PURSUANT TO SENATE BILL 1 (SB1) .PDF 11K - CONSIDERATION OF A RESOLUTION FOR RENEWED MEASURE M2 ANNUAL FUNDING ELIGIBILITY FISCAL YEAR 2026-2027.PDF
11L - RECORDS DESTRUCTION.PDF
11M - RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026-27 AND FISCAL YEAR 2025-26.PDF
Supplemental Information
6-2-26 ADU CC NOPH.PDF
BUDGET_PUBLIC WORKSHOP 6.2.26.PDF

1. Documents:

2. Documents:

3. Documents:

Supplemental Information
6-2-26 ADU CC NOPH.PDF
BUDGET_PUBLIC WORKSHOP 6.2.26.PDF
Public Comments
FW_ NEW COUNCIL RULES_REDACTED.PDF
RYED ELECTRIC PILOT PROGRAM.PDF
FW_ PUBLIC COMMENTS 6_2_26 10B - ADDRESSING HOMELESSNESS IN SAN CLEMENTE_ MOVING FORWARD TOGETHER_REDACTED (1).PDF
FW_ PUBLIC COMMENTS FOR 6_2_26 AGENDA ITEM 10C AUTOMATED LICENSE PLATE READER USAGE AND PRIVACY POLICY REDACTED.PDF

3. Documents:

4. Documents:

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CITY OF SAN CLEMENTE
Tuesday, June 2, 2026
City Council
Regular Meeting Agenda
5:30 p.m. Business Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.sanclemente.gov
Council Chambers
Mayor Loeffler
Mayor Pro Tem Knoblock
Councilmember Cabral
Councilmember Enmeier
Councilmember Wu
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

MISSION STATEMENT
The City of San Clemente, in partnership with the community we serve, will foster a tradition dedicated to:

Maintaining a safe, healthy atmosphere in which to live, work and play; Guiding development to ensure responsible growth while preserving and enhancing our village character, unique environment and natural amenities; Providing for the City’s long-term stability through promotion of economic vitality and diversity…
Resulting in a balanced community committed to protecting what is valued today while meeting tomorrow’s needs.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
The California Environmental Quality Act (“CEQA”) is the state law that requires the City to evaluate and document the potential environmental consequences of discretionary decision. (See, California Public Resources Code Sections 21000-21189.3; and the “CEQA Guidelines” at California Code of Regulations Title 14, Division 6, Chapter 3, Sections 15000-15387). For each item that requires a CEQA determination by the City Council, there is a reference to that determination on this agenda, and more information regarding the CEQA analysis is included in the documents that accompany this agenda. To the extent that City staff determines that particular items are not subject to CEQA, there will be no indication of a CEQA action on this agenda.

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS
Pursuant to Government Code § 84308, City Council Members are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the City Council Member received more than $500 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City’s decision on the agenda item since January 1, 2023. Members of the City Council who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $500 to a City Council Member since January 1, 2023, are required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration.

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CLOSED SESSION
None.

BUSINESS MEETING (5:30 P.M.)

CALL TO ORDER
INVOCATION – Ryder Steimle, San Clemente Stake Interfaith Specialist, Church of Jesus Christ of Latter-Day Saints

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations
1A. Status Update of the City’s Goat Grazing Project
(Agendized by Mayor Pro Tem Knoblock with the support of Mayor Loeffler, at the May 19, 2026 City Council meeting.)
Presentation by Community Development Director Atamian concerning a status update on the City’s goat grazing project.
1B. Proclamation Recognizing the 250th Anniversary of the Signing of the Declaration of Independence
Presentation of a Proclamation recognizing July 4, 2026, as the 250th anniversary of the signing of the Declaration of Independence. The proclamation honors the historic significance of the founding of the United States and encourages community recognition of this milestone anniversary.

2. Council Member Reports

3. Oral Communications (Part 1)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. Speakers may address Council once during either Oral Communications Part 1 or Part 2. A total time limitation of 30 minutes is allocated for Oral Communications Part 1, with each speaker being allotted 3 minutes in which to give his or her presentation. Speaker order is determined by the order in which speaker cards are provided to the City Clerk or Deputy City Clerk at the meeting. Speakers that cannot be accommodated during Oral Communications Part 1 will be invited to address Council during Oral Communications Part 2, which appears on this agenda as Item No. 12. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Under the Ralph M. Brown Act, the City Council cannot act on items raised during public comment but may respond briefly to statements made or questions posed, request clarification or refer the item to staff.

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4. Motion waiving reading in full of all Resolutions and Ordinances

5. Consideration of agendizing items requiring immediate action Per Government Code section 54954.2(b) and 54956.5. Any items agendized will be considered under New Business, unless otherwise determined by a majority vote of the City Council.

6. Closed Session Report - City Attorney

7. Staff Communications

8. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.
8A. PUBLIC HEARING TO CONSIDER ZONING AMENDMENT (ZA) 26-064, THE

INTRODUCTION (FIRST READING) OF AN ORDINANCE TO AMEND SAN CLEMENTE MUNICIPAL CODE SECTIONS 17.28.270, ACCESSORY
DWELLING UNITS, AND 17.88.030, DEFINITIONS, CONSISTENT WITH HOUSING ELEMENT COMMITMENT AND STATE LAW; AND FINDING THIS

ACTION IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY

ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION
21080.17 AND CEQA GUIDELINES 15282(H)
Public Hearing for the City Council to review Zoning Amendment 26-064 to update San Clemente Municipal Code Sections 17.28.270 Accessory Dwelling Units and 17.88.030 Definitions consistent with Housing Element commitments and State law.

The City Council will also consider whether the project is Categorically Exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code § 21080.17 and CEQA Guidelines § 15282(h).

Potential Action
In order to satisfy the regulation of state law, the following actions would be appropriate:

1. Open the public hearing, receive and consider public comment, and close the public hearing.

2. Introduce and conduct the first reading of Ordinance No. 1810 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING ZONING AMENDMENT (ZA) 26-064, TO
AMEND SAN CLEMENTE MUNICIPAL CODE SECTIONS 17.28.270,
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RELATING TO ACCESSORY DWELLING UNITS, AND 17.88.030,

RELATING TO ZONING CODE DEFINITIONS, TO BE CONSISTENT WITH HOUSING ELEMENT COMMITMENT AND STATE LAW; AND FINDING

THIS ACTION IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE
SECTIONS § 21080.17 AND CEQA GUIDELINES 15282(h).
8B. PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE BUDGET FOR FISCAL YEAR 2026-27 AND FISCAL YEAR 2027-28
Public Hearing to consider adopting the City of San Clemente proposed budget for FY 2026-27 and FY 2027-28.

Potential Action
If the City Council finds the Proposed Budget appropriately aligns the City’s fiscal resources with the priorities and goals of the City, the appropriate action would be to adopt Resolution No. 26-96 entitled A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADOPTING

AND APPROVING THE BUDGET AT THE FUND LEVEL FOR THE CITY OF SAN CLEMENTE MUNICIPAL BUDGET FOR FISCAL YEARS 2026-27 AND 2027-28 AND THE COMMITMENT OF FUND BALANCE.

9. Unfinished Business
None.

10. New Business
10A. MAJOR BROWN ACT UPDATES UNDER SENATE BILL 707 (DURAZO) OPEN MEETINGS: MEETING AND TELECONFERENCE REQUIREMENTS
AND CONSIDERATION OF UPDATES TO POLICY 1201-11, INCLUDING A

FOLLOW UP DISCUSSION REGARDING THE APPOINTMENT OF THE

MAYOR PRO TEMPORE
Potential Action
Adopt revisions to Policy 1201-11 as provided in Attachment 1 of the Administrative Report dated June 2, 2026.
10B. 2026 COUNTY OF ORANGE POINT-IN-TIME COUNT
(Agendized by Mayor Loeffler, with the support of Mayor Pro Tem Knoblock and Councilmember Cabral, at the May 19, 2026 City Council meeting.) Discussion regarding the 2026 Orange County Point in Time Count and related homelessness data. Documents are being provided to facilitate City Council discussion regarding the County’s reported findings, prior City correspondence challenging aspects of the 2024 count methodology, and potential direction to staff regarding a City response to the 2026 Point in Time Count results.

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10C. CONSIDERATION OF RESOLUTION 26-108, ADOPTING CITYWIDE

AUTOMATED LICENSE PLATE READER (ALPR) USAGE AND PRIVACY POLICY, UPDATING THE CITY’S RETENTION SCHEDULE FOR ALPR DATA

AND AUTHORIZING AUTOMATIC DESTRUCTION OF ALPR DATA AFTER

EXPIRATION OF THE RETENTION PERIOD
Proposed Action
If the City Council concurs with the contents of the staff report, the appropriate action would be to adopt Resolution No. 26-108, which will:

1. Adopt the proposed Automated License Plate Reader (ALPR) Usage and Privacy Policy 403-1.

2. Update the City’s retention schedule to require maintenance of ALPR data for a minimum of two years.

3. Authorize the automatic destruction of ALPR data after two years unless a longer retention period applies or the law requires a longer retention.

4. Authorize the City Manager to execute amendments, within his regular contract authority, to existing contracts that may be necessary to comply with or implement the Policy.

11. Consent Calendar
All items listed on the Consent Calendar are considered to be routine and will be enacted by one motion without discussion unless Council or Staff requests removal of an item for separate discussion and action.

A. City Council Minutes
Potential Action:
(1) APPROVE CITY COUNCIL SPECIAL AND REGULAR MEETING
MINUTES OF MAY 5, 2026.
(2) APPROVE THE CITY COUNCIL SPECIAL AND REGULAR MEETING MINUTES OF MAY 19, 2026.
(3) APPROVE THE CITY COUNCIL ADJOURNED REGULAR MEETING
MINUTES OF MAY 26, 2026.

B. Commission/Committee Minutes
Potential Action:

Receive and file the following:
(1) BEACHES, PARKS & RECREATION COMMISSION REGULAR
MEETING MINUTES OF APRIL 14, 2026.

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C. Warrant Register
(1) APPROVE WIRE TRANSFER NOS.
3433 THROUGH 3439 AND WARRANT NOS.
611567 THROUGH 611696, PAID ON
5-15-26, IN THE AMOUNT OF $2,037,652.54
TOTAL WARRANT REGISTER $2,037,652.54
Payroll Register
APPROVE WARRANT NOS. 1007
THOUGH 1008, AND AUTOMATIC
DEPOSIT ADVISES 11954
THROUGH 112309, FOR THE PERIOD
4-27-26 THROUGH 5-10-26, PAID
ON 5-15-26, IN THE AMOUNT OF $545,981.76
TOTAL PAYROLL REGISTER $545,981.76
11D. ADOPT ORDINANCE NO. 1809 (SECOND READING) RELATED TO MAYOR

TERM LIMITS
Potential Action
Adopt Ordinance No. 1809 entitled AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN
CLEMENTE MUNICIPAL CODE SECTION 2.04.100 RELATED TO MAYOR TERM LIMITS AND REPEALING ORDINANCE NO. 1782 IN PART.
11E. NOTICE OF COMPLETION - LIFEGUARD TOWERS REPLACEMENT

PROJECT
Potential Action
If the City Council finds this phase of the project has been appropriately completed, the appropriate action would be to adopt Resolution No. 26-97, which will:

1. Accept the Lifeguard Towers Replacement, CIP Project No. 22104, from the contractor, Capo A General Contracting.

2. Authorize the City Clerk to execute and record the Notice of Completion for the completed Lifeguard Towers Replacement.

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the contractor, Capo A General Contracting.

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4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director/City Engineer in the amount of 25% of the total construction cost. 11F. NOTICE OF COMPLETION FOR THE VISTA HERMOSA SPORTS PARK TURF REPLACEMENT PROJECT (FIELDS 5 & 6)
Potential Action
If the City Council finds the project was completed as designed and approved, the appropriate action would be to adopt Resolution No. 26-98, which will:

1. Accept the completion of the Vista Hermosa Sports Park Turf Replacement Project (Fields 5 & 6), CIP Project No. 14810.

2. Authorize the City Clerk to execute and record the Notice of Completion for the turf replacements.

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion.

4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director/City Engineer in the amount of 25% of the total construction cost. 11G. NOTICE OF COMPLETION - CAMINO MIRA COSTA MEDIAN ISLAND Potential Action
If the City Council finds the project was completed as designed and approved, the appropriate action would be to adopt Resolution No. 26-99, which will:

1. Accept the Camino Mira Costa Median Island, CIP Project No. 15323, from the contractor, Gentry General Engineering, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the Camino Mira Costa Median Island.

3. Authorize the City Clerk to release the payment bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the contractor, Gentry General Engineering, Inc.

4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works City Council Regular Meeting Agenda June 2, 2026

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Director/City Engineer in the amount of 25% of the total construction cost. 11H. CONTRACT AMENDMENT - SUNDAY FARMERS MARKET TO EXTEND THE TERM THROUGH SEPTEMBER 2026 AND FINDING THE ACTION EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Potential Action
If the City Council would like to extend the contract, the appropriate action would be adoption of Resolution No. 26-100, which will:

1. Find the project categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 of the state CEQA Guidelines (Existing Facilities, 14 CCR 15301);

2. Approve the Second Amendment to the Agreement for Sunday Farmers Market, extending the agreement term through September 30, 2026.

3. Approve, and authorize the City Manager to execute, Second Amendment to Contract No. C20-28, by and between the City of San Clemente and Introductions Unlimited, for the Sunday Farmers Market, extending the agreement term through September 30, 2026.
11I. CONSIDERATION OF A RESOLUTION AUTHORIZING A SUPPLEMENTAL

APPROPRIATION FOR AQUATIC CHEMICAL EXPENDITURES FOR THE

SAN CLEMENTE AQUATICS CENTER AND OLE HANSON BEACH CLUB
FOR FISCAL YEAR 2025-26 OPERATING BUDGET IN THE AMOUNT OF $80,000
Potential Action
In order to maintain the current operations of the pool in a safe manner, the City Council is being asked to consider adoption of Resolution No. 26-101 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE, CALIFORNIA, APPROVING A SUPPLEMENTAL

APPROPRIATION FOR AQUATIC CHEMICAL EXPENDITURES WITHIN THE RECREATION DIVISION FISCAL YEAR 2025-26 OPERATING BUDGET IN THE AMOUNT OF $80,000.

City Council Regular Meeting Agenda June 2, 2026

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11J. CONSIDERATION OF A RESOLUTION TO DESIGNATE FISCAL YEAR FY 2026-2027 STREET REHABILITATION PROJECTS PURSUANT TO SENATE BILL 1 (SB1) THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

AND FINDING THE PROJECTS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Potential Action
If the projects identified for SB1 funding are consistent with the priorities of the City Council, the appropriate action would be to adopt Resolution No. 26-102 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY SENATE BILL 1 (SB1): THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, AND FINDING THE PROJECTS EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION 15301), AND CLASS 2 (REPLACEMENT OR RECONSTRUCTION, 14 CCR SECTION 15302) OF THE STATE CEQA GUIDELINES.
11K. CONSIDERATION OF A RESOLUTION FOR RENEWED MEASURE M2 ANNUAL FUNDING ELIGIBILITY - FISCAL YEAR 2026-2027
Potential Action
If the items on the 7-year CIP are consistent with the funding priorities of the City Council, the appropriate actions would be:

1. Approve and adopt the 2026 Measure M2 Seven-Year Capital Improvement Program for Fiscal Years 2026-2027 through 2032-2033.

2. Adopt Resolution No. 26-103 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING THE SUBMITTAL OF THE RENEWED MEASURE M2 ANNUAL FUNDING
ELIGIBILITY.

3. Adopt Resolution No. 26-104 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

CONCERNING THE UPDATE OF THE LOCAL SIGNAL
SYNCHRONIZATION PLAN FOR THE MEASURE M (M2) PROGRAM.

4. Authorize and direct the Public Works Director to submit Measure M2 funding eligibility requirements on behalf of the City of San Clemente to the Orange County Transportation Authority and take all actions necessary and proper to obtain Measure M2 funding for Fiscal Year 2026- 2027.

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11L. RECORDS DESTRUCTION
Potential Action
If the City Council determines the records identified for destruction satisfy the provisions of the established retention policy, the appropriate City Council action would be to adopt Resolution No. 26-105 entitled A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS
PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.
11M. ADOPTION OF RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026-27 AND ADOPTION OF A REVISED AND

REPLACEMENT RESOLUTION FOR THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26
Potential Action
If the City Council finds the calculations provided by staff to be consistent with the requirements of Article XIII B of the California Constitution, the appropriate action would be to adopt the following Resolutions:

1. Resolution No 26-106 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ESTABLISHING AN

UPDATED APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION FOR FY 2025-26 AND REPEALING AND REPLACING RESOLUTION NO. 25-72.

2. Resolution No 26-107 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ESTABLISHING AN

APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE
CALIFORNIA CONSTITUTION FOR FY 2026-27.

12. Oral Communications (Part 2)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation, not to exceed three minutes. Under the Ralph M. Brown Act, the City Council cannot act on items raised during public comment but may respond briefly to statements made or questions posed, request clarification or refer the item to staff.

13. Future Agenda Items
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14. Reports
A. City Attorney
B. City Manager

15. Adjournment
Adjourn in memory of Larry Rolapp to the next Regular City Council Meeting scheduled to take place on June 16, 2026. Closed Session will begin at 4:30 p.m. and the Regular Business Meeting will begin at 5:30 p.m. The meeting will take place in the Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

City Council Regular Meeting Agenda June 2, 2026

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CITY COUNCIL MEETING PROCEDURES

RULES FOR ADDRESSING COUNCIL
• Members of the public may address the City Council on matters within the jurisdiction of the City of San Clemente.
• If you wish to address Council, please complete one of the blue speaker cards located at the entrance to the Council Chambers and turn it in to the City Clerk or Deputy City Clerk. • Persons wishing to address Council concerning an agendized item will be invited to address Council during the time that Council is considering that particular agenda item .

Persons wishing to address Council concerning a non-agendized issue will be invited to address Council during the “Oral Communications” portion of the meeting. • Speaker cards must be turned in when the agenda item is announced • When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Please limit your presentation to three minutes.

PRESENTATION OF WRITTEN MATERIALS TO COUNCIL
In order to ensure that Councilmembers have adequate time to consider written materials concerning agenda items, it is strongly recommended that such materials be submitted to the City Clerk by noon the date preceding the Council meeting.

MEETINGS RECORDED AND TELEVISED
City Council meetings are broadcast live and are replayed periodically on Cox Communications Local Access Channel 854. Meetings are also available for live-stream or post meeting viewing from the City’s website.

Meetings are also recorded via audio CD and/or DVD and retained as a City record in accordance with the City’s records retention schedule.

USE OF ELECTRONIC VISUAL AIDS BY PUBLIC AT MEETINGS
To allow staff adequate time to confirm software compatibility, individuals wishing to utilize electronic visual aids to supplement their oral presentations at the meeting, must submit the electronic files to the City Clerk by no later than 12:00 p.m. on the day of the meeting. Only compatible electronic formats will be permitted to be used on City audio/visual computer equipment. Staff makes no guarantee that such material will be compatible, but will use its best efforts to accommodate the request. Electronic presentations shall be limited to visual media, without prerecorded audio narration, that augment a live verbal presentation addressed to the City Council. The display of visual media shall be ancillary to, and not presented in place of, live verbal narration. Members of the public shall not be permitted to connect equipment to the City's computer system. Members of the public shall not be permitted to access the internet from the City's computer equipment. Visual presentations must be provided to the City Clerk in a display-ready format. In no case shall Staff be required to develop a presentation for public use.

This prohibition includes, but is not limited to, compiling of City records, downloading data from websites, or gathering or modifying data provided by the public.

LENGTH OF MEETINGS
At 11:00 p.m., the City Council will determine which of the remaining agenda items can be considered and acted upon at this meeting and will continue all other agenda items to a future meeting.

AMERICANS WITH DISABILITIES ACT
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 361-8200. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.

COMMUNICATION DEVICES
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To minimize meeting distractions and sound system interference, please be sure all personal communication devices are turned off or on silent mode.

MEETING SCHEDULE
Regular Council Meetings are held on the first and third Tuesdays of each month in the Council Chambers, located at 910 Calle Negocio, 2nd floor, San Clemente. Closed Session are considered at 5:00 p.m. and the Business Meeting begins at 6:00 p.m. Additional meetings of the City Council may be called as needed.

AGENDAS, ADMINISTRATIVE REPORTS AND SUPPLEMENTAL WRITTEN MATERIALS Agendas and Administrative Reports are available for review and/or copying at the City Clerk’s Department as soon as agendas are posted, by accessing the City’s website at www.san-clemente.org. An “Inspection Copy” of agenda materials is also located at the entrance to the Council Chambers during meetings for public review. All written material distributed to a majority of the Council after the original agenda packet was distributed is available for public inspection in the City Clerk’s Department, located at 910 Calle Negocio, San Clemente, during normal business hours.

The City Clerk’s Department offers an agenda packet subscription service free of charge. If you wish to receive email copies of City Council agendas, which include hyperlinks to staff reports and other back-up material, register at http://san-clemente.org/enotification.
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING

CITY OF SAN CLEMENTE
Meeting Date: June 2, 2026 Agenda Item: 8A.

Submitted By: Community Development
Prepared By: Araceli Mejia, Assistant Planner
Subject:
..titl e
PUBLIC HEARING TO CONSIDER ZONING AMENDMENT (ZA) 26-064, THE INTRODUCTION (FIRST READING) OF AN ORDINANCE TO AMEND SAN CLEMENTE MUNICIPAL CODE SECTIONS 17.28.270, ACCESSORY DWELLING UNITS, AND 17.88.030, DEFINITIONS, CONSISTENT WITH HOUSING ELEMENT COMMITMENT AND STATE LAW; AND FINDING

THIS ACTION IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17 AND CEQA GUIDELINES 15282(h)
..body
Summary:

The proposed zoning amendment updates the development standards and requirements for accessory dwelling units (ADUs) in accordance with California State law. Modifications to the zoning code are necessary to maintain compliance with the Housing Element and new State laws which changed the requirements for ADUs.

Background:

The subject amendment would replace portions of the San Clemente Municipal Code (SCMC) related to ADU zoning regulations to comply with the City’s Housing Element commitment and State law. The proposed zoning code language is more concise and simpler for property owners, design professionals, and City staff to interpret. Over the last ten years, the State of California has passed a series of laws requiring local governments to ease restrictions on ADUs. The Legislature passes Senate Bill 1069 (SB 1069), Assembly Bill 2299 (AB 2299), and Assembly Bill (AB 2406) in 2016 to facilitate and encourage the creation of ADUs and JADUs. SB 1069 replaced the term “second unit” with “accessory dwelling unit” and provided regulations regarding location and standards. Specifically, SB 1069 prohibited the imposition of parking standards under specified circumstances and required the ministerial approval of ADUs. AB 2299 further reduced the restrictions on parking requirements and required local jurisdictions to implement an ADU program into their municipal codes. AB 2406 introduced allowances for JADUs and the need for deed restrictions and owner occupancy.

On March 5, 2019, the City Council adopted Ordinance No. 1668 which updated the zoning code consistent with corresponding State laws applicable to ADUs. On December 20, 2022, the City updated the code via Ordinance No. 1742 to comply with changes in State law.

In 2025, the State adopted Assembly Bill 462 (AB 462), Assembly Bill 1154 (AB 1154), Senate Bill (SB 9), and Senate Bill 543 (SB 543) which changed the requirements for ADUs, eliminating the owner-occupancy requirement (except for some JADUs), increasing the maximum number of permitted ADUs on a given lot, imposing certain requirements with respect to the issuance of 1 Meeting Date: June 2, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE
certificates of occupancy in disaster-affected areas, and clarifying timelines for City review and approval of ADU and JADU applications. In October 2025, the California Department of Housing and Community Development (HCD) requested that the City update its ordinance and City staff agreed to draft an updated ADU ordinance for Planning Commission and City Council review.

The Planning Commission opened a public hearing to consider the recommended ADU ordinance update on March 4, 2026 and continued the public hearing to April 22, 2026 to allow staff enough time to address comments made by the Department of Housing and Community Development and a letter provided from a housing advocacy group. At the continued hearing on April 22, the Planning Commission expressed concern regarding the loss in authority that the City is experiencing with ADUs and housing development more broadly. They also questioned the ability of the City to make the required findings for the zoning amendment, specifically the finding that the zoning amendment would not adversely affect public health, safety, or welfare.

Commissioners noted that the City’s infrastructure, specifically power, water, and sewer connections, may not be adequate to support the maximum number of ADUs that could be developed in the future. They directed staff to investigate the possibility of implementing an electric service and new meter requirement for ADUs as a way to mitigate resource strains.

State law provides that electric service connection requirements are to follow the same standards as other utilities per Gov. Code Section 66311.5(d). According to State law, if an ADU or JADU is created from existing space of a primary or accessory structure pursuant to Government Code Section 66323, a local agency cannot require the installation of a new or separate connection. A local agency may only require a new utility connection if an ADU or JADU is constructed concurrently with a new single-family home.

The Department of Public Works confirmed that due to new water-efficient appliances, existing homes and businesses are generally decreasing their freshwater usage and wastewater output, and the City has water and sewer capacity to support more development, including the new ADUs that may be developed pursuant to the provisions of the subject zoning amendment. The City has three electric utility providers and none of them have identified the need to restrict service to residential development, for new ADUs or otherwise. Planning staff also looked into other jurisdictions that have received comment letters from HCD regarding their respective ADU ordinances, and found that no other local agencies with compliant ADU ordinances have established a limit on the total number of ADUs within their jurisdiction.

Additionally, the Planning Commission recommended that the City Council consider sending a letter to the State of California, as a local agency or in collaboration with other local agencies, expressing the need for local agencies to have more jurisdiction over ADUs and residential development standards. The Planning Commission also requested that the State of California be identified within the ordinance, specifically in references to the Government Code sections that require the City to be more permissive of ADUs.

Following the public hearing, the Planning Commission recommended that the City Council approve the subject ordinance, and consider the Planning Commission’s other recommendations noted above.
2 Meeting Date: June 2, 2026 Agenda Item: 8A.

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Discussion:

Pursuant to SCMC Section 17.28.270, the purpose and intent of the ADU ordinance is to allow and regulate ADUs and JADUs in compliance with Government Code Sections 66310-66342, which were previously codified as 65852.2-65852.22. The proposed zoning code amendment reflects this change. In accordance with new legislation, the proposed zoning amendment includes the following changes and clarifications:
 Single-family zoned residential lots may combine any/all ADU types. This means a singlefamily zoned lot can have the primary dwelling unit, an attached ADU, a detached ADU, and a JADU.
 Multi-family lots may have up to eight (8) detached ADUs, not to exceed the number of existing primary units on the lot. For instance, a triplex in a residentially zoned lot may have up to three detached ADUs if the new units meet the objective standards for ADUs.  Owner occupancy shall only be required when the sanitation facilities for a JADU are shared with the primary unit. Owner occupancy is not required for a regular ADU.  Architectural review of an ADU shall be limited to what is included in the objective standards for ADUs as delegated by State law.
 A pathway to compliance is provided for unpermitted units created prior to 2020 (the City’s current code limits the legalization of ADUs to those constructed prior to 2018).  The size of ADUs and JADUs shall be calculated as interior livable space.  Development impact fees may not be imposed on an ADU with fewer than 750 square feet of interior livable space.
 Replacement parking may only be required in the Coastal Zone.  Updates to the ADU and JADU application and Certificate of Occupancy processes.  Updates to the definitions section of the Zoning Code with terms relevant to the regulation of ADUs, including “car-share vehicle,” “passageway,” and “public transit.” Considerations Identified by Staff:

The proposed amendment is necessary to maintain compliance with State housing law and to implement the City’s Housing Element commitments. Failure to update the Municipal Code would result in zoning provisions that are unenforceable or inconsistent with State law.

Updating the ADU section of the SCMC will maintain consistency with State law and with the Housing Element 6th Cycle commitment to remove any constraints that may hinder development of housing. Program 8 of the Housing Action Plan of the 6th Cycle Housing Element established that the City will “develop a monitoring program to ensure City is on track to meeting the ADU construction goals, if not on track, review and revise policies and efforts to increase ADU 3 Meeting Date: June 2, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE
construction as necessary.” This action would update the ADU ordinance which aims to reduce constraints, thereby aiding construction goals. Program 14 of the Housing Action Plan established that the City shall address and remove governmental constraints affecting the maintenance, improvement, and development of housing. The proposed amendment will not adversely affect the public health, safety, and/or welfare of the community as it meets community needs, the City has adequate infrastructure to support ADUs, and the regulations are within the limitations set by State law. The project is reflective of the City’s review, direction, and independent judgement regarding land use.

Council Options:
 Conduct the public hearing, and introduce and conduct the first reading of Ordinance No. 1810 (Attachment 1) approving Zoning Amendment ZA26-064 (Attachment 1, Exhibit A) and find the ordinance exempts from the California Environmental Quality Act.  Continue the item with direction to staff to revise the Zoning Amendment or provide additional information.
 Decline to introduce the ordinance, which could result in the City being out of compliance with State law and Housing Element requirements, which may expose the City to enforcement actions or loss of Housing Element compliance status.

Environmental Review/Analysis:

The City, as Lead Agency, has conducted an environmental review of the proposed Ordinance for compliance with the CEQA and State CEQA Guidelines. The SCMC amendments within the ordinance are exempt from CEQA and are not subject to further environmental review pursuant to PRC Sec. 21080.17 and Guidelines Section 15282(h). These authorities provide that adoption of local ordinances to implement California Government Code Section 66314, relating to the construction of ADUs and JADUs, are exempt from the requirements of CEQA. This project would adopt modifications to the ADU development standards consistent with the land uses and development intensities already analyzed in the previously certified EIR for the Housing Element Update, and to implement the requirements of California Government Code Section 66314.

Therefore, the project is exempt from CEQA pursuant to PRC Sec. 21080.17 and Guidelines Section 15282(h). Additionally, the Project is exempt from CEQA review by the general rule that CEQA applies only to projects which have the potential to cause significant effect on the environment, and where it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment, the project is not subject to CEQA per Guidelines Section 15061(b)(3). The proposed zoning amendments involve a policy action that is administrative in nature, related to the requirements to implement the Housing Element Programs. Therefore, it can be seen with certainty that there is no possibility that this Project may have a significant effect on the environment and is exempt from CEQA.

Fiscal Impact:

None.
4 Meeting Date: June 2, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE
Potential Action(s):
..recommendation
In order to satisfy the regulation of state law, the following actions would be appropriate:

1. Open the public hearing, receive and consider public comment, and close the public hearing; and

2. Introduce and conduct the first reading of Ordinance No. 1810 entitled AN ORDINANCE OF

THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING ZONING AMENDMENT (ZA) 26-064, TO AMEND SAN CLEMENTE MUNICIPAL CODE SECTIONS 17.28.270, RELATING TO ACCESSORY DWELLING UNITS, AND 17.88.030,

RELATING TO ZONING CODE DEFINITIONS, TO BE CONSISTENT WITH HOUSING ELEMENT COMMITMENT AND STATE LAW; AND FINDING THIS ACTION IS EXEMPT

FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTIONS § 21080.17 AND CEQA GUIDELINES 15282(h). ..end
Attachment:

1. Ordinance No. 1810
Exhibit A - Amendment to SCMC Chapter 17.28.270 - Accessory Dwelling Units Exhibit B - Amendment to SCMC Chapter 17.88.030 - Definitions

2. Meeting Minutes of the Regular Planning Commission Meeting of April 22, 2026

3. Planning Commission Resolution No. PC26-007
Notification:

Public notice of this item was published in the San Clemente Times, distributed and posted per City and State requirements.
5 Attachment 1
ORDINANCE NO. 1810

AN ORDINANCE OF THE CITY OF SAN CLEMENTE,

CALIFORNIA, APPROVING ZONING AMENDMENT (ZA)
26-064, TO AMEND SAN CLEMENTE MUNICIPAL CODE
SECTIONS 17.28.270, RELATING TO ACCESSORY
DWELLING UNITS, AND 17.88.030, RELATING TO

ZONING CODE DEFINITIONS, TO BE CONSISTENT WITH
HOUSING ELEMENT COMMITMENT AND STATE LAW;

AND FINDING THIS ACTION IS EXEMPT FROM

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
PURSUANT TO PUBLIC RESOURCES CODE SECTIONS §
21080.17 AND CEQA GUIDELINES 15282(h)
WHEREAS, in 2016, Senate Bill No. 1069 (“SB 1069”), Assembly Bill No. 2299 (“AB 2299”), and Assembly Bill No. 2406 (“AB 2406”) became effective and required all California cities and counties to implement streamlining the permitting process for accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and WHEREAS, on March 5, 2019 the City Council of the City of San Clemente (“City Council”) adopted Ordinance No. 1668, which established the City of San Clemente (“City”)’s ADU ordinance and applicable development standards; and WHEREAS, on December 20, 2022 the City Council adopted Ordinance No. 1742, which amended Section 17.28.270 of the San Clemente Municipal Code (“SCMC”), to comply with further amendments to state ADU laws adopted by the California Legislature under Assembly Bill No. 345 (“AB 345”), Assembly Bill No. 2221 (“AB 2221”), and Senate Bill No. 897 (“SB 897”), regarding allowance of separate sale or conveyance of an ADU and restrictions to ADUs and JADUs; and
WHEREAS, in October, 2025, the California Department of Housing and Community Development (HCD) requested that the City update the City’s current ordinance; and WHEREAS, in late 2025, the California Legislature enacted additional bills that further amended state ADU laws, including, Assembly Bill No. 462 (“AB 462”), Assembly Bill No. 1154 (“AB 1154”), Senate Bill No. 9 (“SB 9”); and Senate Bill No. 543 (“SB 543”); and WHEREAS, SCMC sections 17.28.270 and 17.88.030 require amendments in order to comply with state ADU laws, as amended by the above-referenced legislation; and WHEREAS, the City, as Lead Agency, has conducted an environmental review of the proposed Ordinance for compliance with the California Environmental Quality Act (“CEQA”); and; and
WHEREAS, on April 22, 2026, the Planning Commission of the City of San Clemente (“Planning Commission”) held a duly noticed public hearing to consider the staff report, 6 Ordinance No. 1810 Page 2
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recommendations by staff, and public testimony concerning the proposed Zoning Amendment 26-064. Following the public hearing, the Planning Commission voted to forward the Zoning Amendment to the City Council with a recommendation in favor of its adoption; and
WHEREAS, the City gave public notice of a City Council public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and WHEREAS, on June 2, 2026, the City Council held a duly noticed public hearing on this Ordinance, considered the agenda report, including the policy considerations discussed therein, and the written and oral testimony received. The City Council has also reviewed and considered the Planning Commission’s recommendation, and the agenda report and other evidence that was considered by the Commission, in connection with the proposed Zoning Amendment 26-064; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE DOES HEREBY DETERMINE, FIND, AND ORDAIN AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.

SECTION 2. CEQA Findings.

Based upon its review of the entire record, including the Staff Report, any public comments or testimony presented to the Planning Commission and the City Council, and the facts outlined below, the City Council hereby finds and determines that this Ordinance is exempt from CEQA and not subject to further environmental review pursuant to Public Resources Code (“PRC”) Section 21080.17 and CEQA Guidelines Sections 15282(h) and 15061(b)(3). These authorities provide that adoption of local ordinances to implement Government Code section 66314, relating to the construction of ADUs and JADUs, are exempt from the requirements of CEQA. This Ordinance adopts modifications to the ADU development standards consistent with the land uses and development intensities already analyzed in the previously certified Environmental Impact Report for the Housing Element Update, and to implement the requirements of Government Code section 66314.

Therefore, the Project is exempt from CEQA pursuant to PRC Sec. 21080.17 and Guidelines Section 15282(h).

Additionally, the Ordinance is exempt from CEQA review by the general rule that CEQA applies only to projects which have the potential to cause a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment, the Ordinance is not subject to CEQA per Guidelines Section 15061(b)(3). The zoning amendments involve a policy 7 Ordinance No. 1810 Page 3
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action that is administrative in nature, related to the requirements to implement the Housing Element Programs. Therefore, it can be seen with certainty that there is no possibility that this Ordinance may have a significant effect on the environment and is exempt from CEQA.

SECTION 3. Zoning Amendment Findings. With respect to Zoning Amendment (ZA) 26-064, amending SCMC section 17.28.270 and 17.88.030 as set forth in Attachment 1 to this Ordinance, attached hereto and incorporated herein by this reference, the City Council finds as follows, in accordance with SCMC section 17.16.040:

A. The proposed amendment is consistent with the General Plan.

1. The 6th Cycle Housing Element is a component if the General Plan, including the Housing Action Plan goal to provide adequate opportunities for new housing for people of all economic levels and those with special needs.

2. Program 8 of the Housing Action Plan of the City’s 6th Cycle Housing Element addresses Accessory Dwelling Units and facilitation of construction of new ADUs which will count towards the City’s Regional Housing Needs Assessment goal.

3. Program 14 of the Housing Action Plan of the City’s 6th Cycle Housing Element specifically mandates that the City address and remove governmental constraints affecting the maintenance, improvement, and development of housing. This includes removing constraints for the development of Accessory Dwelling Units.

B. The proposed amendment will not adversely affect the public health, safety, and welfare.

1. The amendment meets community needs and conditions within the limitations set by State law.

2. The project reflects the City’s review, direction, and independent judgement regarding land use.

3. The project is consistent with the City’s 6th Cycle Housing Element, whereby the City Council determined that the implementation of the Housing Element Programs will not adversely impact the public health, safety, and welfare.

SECTION 4. Zoning Amendment 26-064. The City Council hereby approves Zoning Amendment (ZA) 26-064, amends Sections 17.28.270 and 17.88.030 of the San Clemente Municipal Code as set forth in Exhibits A and B, respectively, to this Ordinance, which are fully incorporated herein by this reference.

SECTION 5. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council's findings 8 Ordinance No. 1810 Page 4
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and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673. The custodian of these records is the City Clerk.

SECTION 6. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 7. Effective Date. This Ordinance shall become effective 30 days after its adoption.

SECTION 8. Reference to Existing Provisions. All existing provisions of the Municipal Code that are repeated herein are repeated only to aid decision-makers and the public in understanding the effect of the proposed changes. Restatement of existing provisions does not constitute a new enactment.

SECTION 9. Certification and Publication. The City Clerk shall certify to the passage of this Ordinance and cause the same to be published as required by law.

APPROVED AND ADOPTED this _____day of _________________, ________.

ATTEST:
_______________________________ ___________________________ Laura Campagnolo, City Clerk of the City Rick Loeffler, Mayor of the City of of San Clemente, California San Clemente, California
9 Ordinance No. 1810 Page 5
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1810 having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
__________________________
Elizabeth A. Mitchell, City Attorney
10 1. Section 17.28.270 of the San Clemente Municipal Code is hereby amended to read in its entirety as follows:
“17.28.270 Accessory Dwelling Units
A. Purpose. The purpose of this section is to establish the procedures for the creation of accessory dwelling units and junior accessory dwelling units, as defined in Section 17.88.030, Definitions, of this title and in California Government Code Sections 66310-66342, or any successor statute, in areas where residential uses are authorized, including as part of a planned community development plan or specific plan, and to provide development standards to ensure the orderly development of these units in appropriate areas of the City.

B. Effects of Conforming. An accessory dwelling unit or junior accessory dwelling unit that conforms to the requirements of this section shall not be:

1. Deemed to be inconsistent with the General Plan and zoning district designation for the lot on which the accessory dwelling unit or junior accessory dwelling unit is located;

2. Deemed to exceed the allowable density for the lot on which the accessory dwelling unit or junior accessory dwelling unit is located;

3. Considered in the application of any ordinance, policy, or program to limit residential growth; or

4. Required to correct legally established nonconforming zoning condition(s), building code violation(s), and/or unpermitted structure(s) that do/does not present a threat to public health and safety and is/are not affected by the construction of the accessory dwelling unit or junior accessory dwelling unit. This does not prevent the City from enforcing compliance with applicable building standards in accordance with California Health and Safety Code Section 17980.12.

C. Review Authority. Accessory dwelling units and junior accessory dwelling units shall be approved in any residential or mixed-use zoning district, and within commercial zoning districts where residential development is authorized pursuant to the Housing Overlay or applicable State law, subject to issuance of a building permit and the following conditions:

1. There is an existing or proposed dwelling unit on the lot; and

2. The project conforms to the development standards and requirements for accessory dwelling units and/or junior accessory dwelling units as provided in this section; or must be approved ministerially without meeting all development standards and requirements pursuant to California Government Code Section 66323 (see subsection J).

D. Maximum Number of Accessory Dwelling Units Allowed. The following are the maximum number of different categories of accessory dwelling units allowed on any residential or mixed-use lot, including attached, detached, and/or converted ADUs and JADUs. Combinations that provide the maximum number of ADUs in multiple categories are permitted. For purposes of this section, multi-family dwelling means a structure or development containing two (2) or more dwelling units.

1. Attached to a Single-Family Dwelling. One (1) attached accessory dwelling unit may be permitted on a lot with a proposed or existing single-family dwelling, subject to the following:

Exhibit A
11 a. The accessory dwelling unit and/or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling, or an attached accessory structure, and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing, attached accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress. b. Attached new construction of an ADU of at least 850 square feet of interior livable space.
c. The space has exterior access from the proposed or existing single-family dwelling. d. The side and rear setbacks are sufficient for fire and safety.

2. Detached new construction on a Lot with a Single-Family Dwelling. One (1) detached newconstruction ADU may be permitted on a lot with a proposed or existing single-family dwelling.

3. Detached conversion on a Lot with a Single-Family Dwelling. One (1) detached accessory structure may be converted to an accessory dwelling unit on a lot with a proposed or existing single-family dwelling.

4. Detached on a Lot with a Multi-Family Dwelling. For purposes of this section, a multifamily dwelling approved and built as a single complex shall be considered one (1) lot, regardless of the number of parcels. The detached accessory dwelling unit(s) are subject to the following:
a. On a lot with an existing multi-family dwelling, not more than eight (8) detached accessory dwelling units are permitted. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.
b. On a lot with a proposed multi-family dwelling, not more than two (2) detached accessory dwelling units are permitted.

5. Conversion of space within Multi-Family Dwelling. For purposes of this section, a multifamily dwelling approved and built as a single complex shall be considered one (1) lot, regardless of the number of parcels. A portion of an existing multi-family dwelling may be converted to an accessory dwelling unit if it is not currently used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages.
a. The number of allowed converted accessory dwelling units within an existing multi-family dwelling shall be at least one (1) and up to twenty-five (25) percent of the number of existing multi-family dwelling units. For the purposes of calculating the number of allowable accessory dwelling units, the following shall apply:
i. Previously approved accessory dwelling units shall not count towards the number of existing multi-family dwelling units;
ii. Fractions shall be rounded to the nearest whole number of allowed accessory dwelling units, except that at least one accessory dwelling unit shall be allowed; and

6. Junior Accessory Dwelling Units. One (1) junior accessory dwelling unit may be permitted on a lot with a proposed or existing single-family dwelling, subject to the following:
12 i. The junior accessory dwelling unit is proposed to be attached to, or within the space of, a proposed or existing single-family dwelling. ii. The junior accessory dwelling unit shall have independent exterior access from the single-family dwelling and may provide interior access to the single-family dwelling.
iii. Side and rear setbacks comply with Title 15 (Buildings and Construction). iv. The junior accessory dwelling unit may be constructed in addition to an accessory dwelling unit on the lot with a proposed or existing single-family dwelling. A junior accessory dwelling unit is not permitted on a lot with a proposed or existing multi-family dwelling.

E. Development Standards. Except as modified by this subsection, an accessory dwelling unit and/or junior accessory dwelling units created consistent with CA Gov Code 66314-66322 shall conform to all objective standards of the underlying residential or mixed-use zoning district, any applicable overlay district, and all other applicable provisions of Title 17 (Zoning), including but not limited to height, setback, site coverage, floor area limit, and residential development standards and design criteria.

1. Minimum Lot Area. There shall be no minimum lot area required to establish an accessory dwelling unit and/or junior accessory dwelling unit.

2. Setback Requirements. Accessory dwelling units and junior accessory dwelling units shall comply with the setback requirements applicable to the zoning district, except as noted below:
a. For conversion of existing enclosed floor area, garage, or carport, no additional setback is required, beyond the existing provided setback. b. For replacement of an existing enclosed structure, garage, or carport, no additional setback is required, beyond the existing setback provided. This provision shall only apply to accessory dwelling units and junior accessory dwelling units that are replacing existing structures within the same footprint and do not exceed the existing structure's size and/or height. For an accessory dwelling unit that will replace a detached garage, the building and demolition permits shall be reviewed and issued concurrently.
c. Attached and detached accessory dwelling units shall provide a minimum setback of four (4) feet from all side property lines and rear property lines not abutting an alley unless the setback requirements of the underlying zoning district are less restrictive. Front setbacks of the underlying zoning district shall apply unless application of the setback would physically preclude the construction of a qualifying ADU(s) on the property.

3. Building Height
a. Internal. Accessory dwelling units and junior accessory dwelling units internal to an existing or proposed single-family or multi-family dwelling shall comply with the height limit as required by the underlying zoning district. b. Attached. Accessory dwelling units and junior accessory dwelling units attached to an existing or proposed single-family or multi-family dwelling shall comply with the height limit as required by underlying zoning district. 13 c. Detached accessory dwelling units shall not exceed a height of sixteen (16) feet except as noted below:
i. A detached accessory dwelling unit constructed on a lot with an existing or proposed multi-family, multi-story dwelling shall not exceed a height of eighteen (18) feet.
ii. A detached accessory dwelling unit constructed above a detached garage shall not exceed two (2) stories and the maximum allowable height of the underlying zoning district, provided the accessory dwelling unit meets the minimum setbacks required by underlying zoning district and the principal dwelling unit complies with parking standards set forth in Section

17.28.270.
iii. A detached accessory dwelling unit constructed on a lot with an existing or proposed single-family or multi-family dwelling unit that is located within one-half mile walking distance of a major transit stop or highquality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code shall not exceed a height of eighteen (18) feet. An additional two (2) feet in height shall be permitted to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary unit.

4. Unit Size.
a. The maximum size of a detached or attached accessory dwelling unit shall be eight hundred fifty (850) square feet of interior livable space for a studio or one (1) bedroom unit and one thousand (1,000) square feet of interior livable space for a two (2) or more bedroom unit.
b. Application of size limitations set forth in this section, shall not apply to an accessory dwelling unit that is converted from the existing space of a single-family dwelling or existing accessory structure.
c. Application of development standards may limit the size of the accessory dwelling unit below 850 or 1,000 square feet, but in no case shall the setbacks, floor area limit, open space, or site coverage requirement reduce the accessory dwelling unit to less than eight hundred (800) square feet of interior livable space where there is no other alternative to comply, and only to the extent necessary to construct the accessory dwelling unit.
d. The maximum size of a junior accessory dwelling unit shall be five hundred (500) square feet of interior livable space.

5. Floor Area Limit Exception for Non-living Area and Basements. Floor area of an accessory dwelling unit or junior accessory dwelling located below grade within a basement that is not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, or garages, shall be excluded from the allowable floor area;

6. Fire Sprinklers. An accessory dwelling unit and/or junior accessory dwelling unit shall not require fire sprinklers so long as fire sprinklers are not required for the principal dwelling(s), nor shall the construction of an accessory dwelling unit and/or junior accessory dwelling unit require fire sprinklers to be installed in the existing single-family or multifamily dwelling. 14 7. Lighting
a. Lighting shall be shielded or recessed so that direct light sources (e.g. bulbs, lamps, LEDs) are not visible from adjoining properties. For example, a Spanish-styled light fixture with glass panes should have the bulb covered by opaque glass or covered with a shroud, so the light bulb is not visible from adjoining properties;

8. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit and/or junior accessory dwelling unit.

9. Parking. Parking shall comply with requirements of Chapter 17.64 (Parking and Access Standards) except as modified below:
a. One (1) parking space shall be required for each accessory dwelling unit. b. When additional parking is required, the parking may be provided as tandem parking and/or located on an existing driveway.
c. Notwithstanding subsection E.9.a above, no additional parking shall be required for:
i. A junior accessory dwelling unit;
ii. An accessory dwelling unit internal to a proposed principal residence or converted from existing space of a principal residence or existing accessory structure;
iii. An accessory dwelling unit located within one-half-mile walking distance of public transit, as that term is defined in Section 17.88.030; iv. An accessory dwelling unit located within an architecturally and historically significant historic district as defined by State law or within the City’s Architecture overlay, whichever is more permissive; v. When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit;
vi. When there is a car-share vehicle located within one (1) block of the ADU; or
vii. Outside the coastal zone, when an accessory dwelling unit is constructed in conjunction with a new single-family or multi-family dwelling on the same lot.
viii. Outside the coastal zone, when a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit at the same location or converted to an accessory dwelling unit, those off-street parking spaces are not required to be replaced.

F. Impact and Utility Fees.

1. No impact fee or connection fee is required for an ADU that provides less than seven hundred fifty (750) square feet of interior livable space;

2. An impact fee and connection fee is required for an ADU that provides at least seven hundred fifty (750) square feet of interior livable space and shall be charged proportionately in relation to the square footage of the primary dwelling unit. (e.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling); and 15 3. If an ADU is constructed at the same time as a new single-family or multi-family dwelling, a separate utility connection directly between the ADU and the utility shall be required and payment of the proportional connection fee and capacity charge shall be required.

4. Conversion. No separate connection between the accessory dwelling unit and the utility shall be required for units created within a single-family or multi-family dwelling(s).

5. Septic Systems. If the principal dwelling unit(s) is currently connected to an on-site wastewater treatment system and is unable to connect to a sewer system, accessory dwelling units and junior accessory dwelling units may connect to the on-site wastewater treatment system. However, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last ten years.

G. Additional requirements for All Accessory Dwelling Units and Junior Accessory Dwelling Units.

1. No Separate Conveyance. An accessory dwelling unit or junior accessory dwelling unit may be rented, but no accessory dwelling unit or junior accessory dwelling unit may be sold or otherwise conveyed separately from the lot and the principal dwelling (in the case of a single-family dwelling) or from the lot and all of the dwellings (in the case of a multi-unit family dwelling), except as allowed under California Government Code section 66341.

2. Short-Term Lodging. The accessory dwelling unit and/or junior accessory dwelling unit shall not be rented for periods of thirty (30) days or less.

3. Owner-Occupancy for Junior Accessory Dwelling Units. As required by applicable law, JADUs that share sanitation facilities with a single-family dwelling are subject to an owneroccupancy requirement. If the JADU has its own bathroom, then the property owner is not required to reside on the property.

4. Deed Restriction. Prior to issuance of a building permit for a JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s Office and a copy filed with the Planning Division. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that:
a. Except as otherwise provided in California Government Code Section 65852.26, or any successor statute, the JADU may not be sold separately from the primary dwelling.
b. The JADU is restricted to the approved size and to other attributes allowed by this section.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may be removed if the owner eliminates the JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Planning Division, providing evidence that the JADU has in fact been eliminated. The Planning Division may then determine whether the evidence supports the claim that the JADU has been eliminated. Appeal may be taken from the Planning Division's determination consistent with other provisions of this code. If the JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an 16 JADU removed, the remaining structure and improvements must otherwise comply with all applicable legal requirements, including those of the Zoning Code. e. The deed restriction is enforceable by the Planning Division for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the JADU in violation of the recorded restrictions or abatement of the illegal unit.

H. Historic Resources. Accessory dwelling units and/or junior accessory dwelling units proposed on residential or mixed-use properties that are determined to be historically significant shall be approved ministerially, however, any accessory dwelling unit or junior accessory dwelling unit proposed on a property that is listed on the State or National Register of Historic Resources shall meet all Secretary of the Interior Standards, as applicable. An ADU that is on a single-family residential property abutting a real property that is listed in the California Register of Historic Resources, or on a multi-family of three or more units that is within 300 feet of a real property listed in the California Register of Historic Resources, must be located outside the front yard setback area. Exceptions may be granted where there is no other space available on the property that could accommodate an ADU of at least 800 square feet of livable space. In these cases, the front yard setback may be waived, but only to the extent needed to accommodate this size of ADU.

I. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.

1. The City shall not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to public health and safety and that is not affected by the construction of the ADU or JADU.

2. Unpermitted ADUs Constructed Before 2020.
a. Permit to Legalize. As required by State law, the City may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
i. The ADU violates applicable building standards, or
ii. The ADU does not comply with State ADU law or with the requirements of this section.
b. Exceptions.
i. Notwithstanding Subsection I.2.a above, the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the structure.
ii. Subsection I.2.a above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code Section 17920.3.

J. ADUs and JADUs created pursuant to California Government Code Section 66323 must comply with the building code and health and safety requirements, but are not subject to development standards set forth in California Government Code Sections 66314-66322 or any standards of San 17 Clemente Municipal Code Section 17.28.270 that conflict with California Government Code Section 66323.

K. Approval Process. The City will review and approve an application for an ADU or JADU in accordance with all applicable state law requirements, including, but not limited to, those specified in California Government Code sections 66317 and 66335 for eligible ADUs and JADUs.

L. Certificate of Occupancy Timing.

1. No certificate of occupancy for an ADU or JADU may be issued before the certificate of occupancy is issued for the primary dwelling unit.

2. Notwithstanding subsection K.1 above, a certificate of occupancy for an ADU may be issued before a certificate of occupancy for the primary dwelling if each of the following requirements are met:
a. The county is subject to a proclamation of a state of emergency made by the California Governor on or after February 1, 2025;
b. The primary dwelling was substantially damaged or destroyed by an event referenced in the Governor’s state of emergency proclamation; c. The ADU has been issued construction permits and has passed all required inspections; and
d. The ADU is not attached to the primary dwelling.”
Section 17.88.030 of the San Clemente Municipal Code is hereby amended to include the following definitions under a new subsection titled “Accessory Dwelling Units”:
“Accessory Dwelling Units. For purposes of Section 17.28.270, Accessory Dwelling Units, of this title, the following definitions shall apply:

Exhibit B
18 1."Accessory dwelling unit" or "ADU" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit may also include the following:
a. An efficiency unit, as defined by California Health and Safety Code Section 17958.1; and b. A manufactured home, as defined by California Health and Safety Code Section 18007.

2. "Accessory structure" means a structure that is accessory and incidental to a dwelling located on the same lot.

3."Complete independent living facilities" means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multi-family dwelling exists or will be situated.

4. “Car share vehicle” means part of an established program intended to remain in effect at a fixed location for at least ten (10) years and available to the public.

5. "Efficiency kitchen" means a kitchen that includes all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.

6. "Junior accessory dwelling unit" or "JADU" means a residential unit that satisfies all of the following:
a. Provides no more than five hundred (500) square of interior livable space; b. Is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure;
c. Includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure;
d. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling; and e. Includes an efficiency kitchen, as defined in subdivision 5 above.

7. “Livable space” means a space within a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.

8. "Living area" means the interior habitable area of a dwelling unit, including basements and attics that are adapted to be habitable, but does not include uninhabitable basements, attics, or garages.

9. "Nonconforming zoning condition" means a physical improvement on a property that does not conform with current zoning standards.
19 10. "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to the entrance of the ADU or JADU.

11. "Proposed dwelling" means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

12. "Public transit" means a location, including, but not limited to, a bus stop, trolley stop, SC Rides pickup location, or train station where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. “Public transit” is inclusive of the definition for “public transit” set forth in Government Code section 66313, subdivision (m).

13. "Tandem parking" means that two (2) or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.”
20 Attachment 2
21 MINUTES OF THE REGULAR MEETING

OF THE CITY OF SAN CLEMENTE

PLANNING COMMISSION
April 22, 2026 @ 6:00 p.m.

San Clemente City Hall Council Chamber
910 Calle Negocio, San Clemente, CA 92673
Teleconference via www.san-clemente.org

1. CALL TO ORDER
Chair Cosgrove called the Regular Meeting of the Planning Commission of the City of San Clemente to order at 6:16 p.m. The meeting was offered in person at San Clemente City Hall Council Chambers, 91 O Calle Negocio, San Clemente, California, 92673, and also via live stream from the City's Yo Tube Channel.

2. PLEDGE OF ALLEGIANCE
Vice Chair Camp led the Pledge of Allegiance.

3. ROLLCALL
Commissioners Present: Chair Cameron Cosgrove; Vice Chair M. Steven Camp; Chair Pro Tern Scott McKhann; Gary Mccaughan; Karen PrescottLoeffler; Brett Freeman; and Patrick Griffin Commissioners Absent: None
Staff Present: Zach Rehm, Acting City Planner
Christopher Wright, Senior Planner
Jessica Gatny, Assistant Planner
Araceli Mejia, Assistant Planner
Gena Bums, Deputy City Attorney
Tamara Tatich, Recording Secretary
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

4. SPECIAL ORDER OF BUSINESS/SPECIAL PRESENTATION

5. None.

MINUTES
A. Receive and file Minutes from the Planning Commission Regular Meeting of April 8, 2026.
22 Planning Commission Regular Meeting Minutes of April 22, 2026 Page2

IT WAS MOVED BY COMMISSIONER GRIFFIN, SECONDED BY COMMISSIONER FREEMAN, AND CARRIED 5-0, VICE CHAIR CAMP AND COMMISSIONER PRESCOTT

LOEFFLER ABSTAINED, TO RECEIVE AND FILE THE MINUTES FROM THE REGULAR MEETING OF APRIL 8, 2026.

6. ORAL AND WRITTEN COMMUNICATIONS
None.

7. CONSENT CALENDAR
None.

8. PUBLIC HEARING
A. Public Hearing Project (PHPl 22-427, Wood Residence. 104 W. Avenida Cadiz
A request for the Planning Commission to consider approving an existing unpermitted 543 sq. ft. living room addition, an increase to the height of the existing garage roof, and changes to the front facade, including a new entry porch with steps, a new window, new garage door, and new exterior siding. The subject property is adjacent to a historic resource.

The Planning Commission will also consider whether the project is Categorically Exempt from the requirements of the CEQA pursuant to CEQA Guidelines §15301 (Class 1: Existing Facilities).

Chair Cosgrove opened the public hearing and requested the Commissioners disclose any actions related to the project. Commissioner Freeman visited the project site.

Assistant Planner Gatny provided a summary of the presentation titled, "Wood Residence, Development Permit 26-047 / PHP 25-472, April 22, 2026." A copy of the presentation is available by contacting the City of San Clemente Planning Division. Staff's report included , the project location; historic resource background; site plan and proposed improvements; existing and proposed floor plans; interior improvements; front fa9ade improvement; east and west side elevations; Design Review Subcommittee recommendations; rear elevation; recommended findings; public comments in support; and staff recommendations.

Chair Cosgrove welcomed Jeff Wood, the applicant, to make his statement. Mr.

Wood stated the proposed plan is to make improvements to the property he purchased in April 2025 so that the house is safe and functional for the family. 23 Planning Commission Regular Meeting Minutes of April 22, 2026 Page3 The layout and footprint have been the same for at least 40 years and neighbors are in support of the renovation.

Chair Cosgrove thanked the applicant.

The Commissioners did not have any questions of the applicant.

Public Comments: None.

Chair Cosgrove closed the public hearing and thanked the applicant.

VICE CHAIR CAMP MADE A MOTION, SECOND BY CHAIR COSGROVE, MOTION PASSED 7-0, TO APPROVE PUBLIC HEARING PROJECT 26-012 / DEVELOPMENT PERMIT 26-047, WOOD RESIDENCE, 104·W. AVENIDA CADIZ, SUBJECT TO THE CONDITIONS OF APPROVAL.

B. Continued Public Hearing Project (PHP) 26-063, Zoning Amendment (ZA) 26-064
A continued Public Hearing for the Planning Commission to provide recommendations to the City Council on Zoning Amendment 26-064 to update San Clemente Municipal Code Sections 17.28.270 Accessory Dwelling Units and 17.88.030 Definitions consistent with Housing Element commitment and State law.

The Planning Commission will also consider whether the project is Categorically Exempt from the requirements of .CEQA pursuant to the CEQA Public Resources Code §21080.17, and CEQA Guidelines §15183.

Chair Cosgrove reopened the public hearing that was continued from March 4, 2026.

Assistant Planner Mejia provided a summary of the presentation titled, "ADU Ordinance Update PHP26-063 / Zoning Amendment (ZA) 26-064, April 22, 2026." A copy of the presentation is available by contacting the City of San Clemente Planning Division. Staff's report included a background with timeline on Accessory Dwelling Unit (ADU) law that began with the passing of several ADU laws in 2016; public comments were received prior to the March Planning Commission meeting from an advocacy group regarding Government Code §66323; Junior ADU standards, multifamily standards, and deed restrictions; Housing and Community Development (HCD) staff provided informal feedback which has been addressed in the updated draft amendment; summary review of the two main bills that were passed, Assembly Bill (AB) 462 and State Bill (SB) 543; summary of additional changes and updated definitions; summary of changes since the March 4, 2026 meeting; consistency with General Plan and 2021 Housing Element; and recommendation for Planning Commission to 24 Planning Commission Regular Meeting Minutes of April 22, 2026 Page4 recommend the City Council to adopt an ordinance approving Zoning Amendment (ZA) 26-064.

Public Comments:

Larry Culbertson, resident, understands the need to be in compliance with State law and referenced AB 1154 effective January 2026, facilitating ADU construction; expressed concerns about neighborhood saturation with ADUs impacting quality of life, parking, and utility infrastructure; noted that singlefamily homes could effectively become four-family homes with the latest laws allowing multiple ADUs; highlighted past issues with vacation rentals and lack of local control over ADUs; and suggested the City Council consider ways to mitigate potential problems from State-mandated ADU requirements.

Irr response to the public comments, Chair Cosgrove confirmed with staff that the amendment is to bring the City into compliancy and nothing more; and acknowledged intensification of single-family lots and removal of local oversight.

Commission Comments and Staff Discussions:
• Staff explained the original code section for JADUs had no maximum size requirement. The update reflects a 500 sq. ft. maximum, consistent with State legislation
• Staff confirmed that HCD concerns were addressed and have been incorporated, and that no further comments have been received. • The Commission suggested to keep "California" in reference to "Government Code sections to reflect that all is being imposed by the State of California. • Staff confirmed the requirement of 500 sq. ft. maximum for JADU is defined as livable space; and Gov Code §66313 defines livable space • Staff stated that definitions as specified by State are included. • The Commission expressed displeasure of the proliferation of ADUs and suggested the City Council to join other cities to discuss options. • Staff clarified height limitations for ADUs remain the same as current code and State law, with allowable increases near public transit. • Discussion on the City's ability to impose impact fees for larger ADUs, particularly those over 750 square feet of interior livable space; and staff clarified that the City collects impact fees from ADUs and multifamily developments.
• Staff stated that currently, the impact on public infrastructure is minimal; approximately 120 ADUs approved in 5 years.
• No significant adverse effects on sewage or water infrastructure have been noted.
• The Commission expres~ed uncertainty about future ADU numbers; expectation of 20-40 ADUs per year.
• Staff advised that local governments communicate through organizations like the Orange County Council of Governments and Southern California Association of Governments.
25 Planning Commission Regular Meeting Minutes of April 22, 2026 Page5 • The Commission noted that many properties developing ADUs do not have sufficient utilities, recommended adding a requirement that the electrical and other services be brought up to current standards. Staff confirmed State law prevents cities from enforcing some new sewer connections, but not electrical for detached ADUs.
• Staff encouraged the Commission to note the findings are based on prior City Council findings in adoption of the 2021 Housing Element (HE). • Legal staff confirmed that the purpose of the Amendment is to comply with State law.

Chair Cosgrove closed the public hearing, summarized the discussion and provided options for a motion.

CHAIR COSGROVE MADE A MOTION, SECOND BY VICE CHAIR CAMP, MOTION PASSED 6-1, COMMISSIONER MCCAUGHAN OPPOSED, TO RECOMMEND THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING ZONING AMENDMENT 26-064 TO AMEND SCMC SECTIONS 17.28.270 AS 17.88.03, WITH MINOR CHANGES

DISCUSSED DURING THE HEARING TO REFERENCE THE STATE OF CALIFORNIA

AND APPLY UTILITY CONNECTION REQUIREMENTS AS ALLOWED BY LAW, AND

MODIFY SECTION TWO OF THE RESOLUTION TO RECOMMEND THAT COUNCIL

CONSIDER ENGAGING WITH OTHER LOCAL GOVERNMENTS AND THE STATE OF

CALIFORNIA TO LIMIT THE PROLIFERATION OF ADUS AND ENSURE UTILITY INFRASTRUTURE IS NOT OVERBURDENED.

9. NEW BUSINESS
None.

10. OLD BUSINESS
A. Parking and Transportation Demand Management Plan
A request for the Planning Commission to provide recommendations to the City Council on the Parking and Transportation Demand Management (TDM) Plan being prepared for the certification of the City's Local Coastal Program (LCP).

Acting City Planner Rehm (ACP) provided a summary of the presentation titled, "City of San Clemente, Parking and TDM Plan and Policy Development for Local Coastal Program." A copy of the presentation is available by contacting the City of San Clemente Planning Division. Staffs report included: results of the July/August peak hours; weekend turnover in January and July in the high impact areas; parking & TDM Strategies including use of the trolley, pilot program for parking enforcement that was authorized by the City Council and future enforcement concepts, developing a wayfinding program, streetscape improvements and time limits for parking; introduction of the new "yellow'' trolley line funded by a new grant; responses to Planning Commission Comments made at the December 17, 2025 meeting; consultant recommendations 26 Planning Commission Regular Meeting Minutes of April 22, 2026 Page6 categorized by short-term (0 to 2 years), medium-term (3 to 5 years), and longterm (6+ years); and next steps for Coastal Commission staff review and City Council ,review that may result in a potential zoning amendments.

Commission Discussions and Comments:
• The Commission suggested staff send the entire Parking and TDM Plan or just the Executive Summary with the top-line highlights to City Council as soon as possible since it is relevant to current agenda discussions. • Expand private lots for employees realizing that employees are moving cars during breaks now that there's a parking monitor
• Use of old City Hall lot and adding a trolley, whereby staff provided background, known challenges of the property and stated that the topic will most likely be on a future City Council agenda.
• Commission stressed the importance of a parking structure. • Enforcing two and three-hour limits and use library parking with posted hours should ease the impact.

CHAIR COSGROVE MADE A MOTIONf SECOND BY COMMISSIONER PRESCOTTLOEFFLER AND PASSED 7-0 TO FORWARD THE DRAFT PARKING AND TRANSPORTATION DEMAND MANAGEMENT PLAN TO CITY COUNCIL.

11. REPORTS OF COMMISSIONERS AND STAFF
•A. Commissioner Reports
None.

B. Tentative Future Agenda
The April 29, 2026 Design Review Subcommittee and the May 6, 2026 Planning Commission meetings will be cancelled due to lack of business.

C. Administrative Permit Report
In addition to the written report that was provided, Acting City Planner Rehm provided draft minutes from the Adjourned Zoning Administrator (ZA) meeting of-April 21, 2026 and explained that with the recent approval of the streamlining amendments, this will be the last meeting where Planning Commission will be able to appeal an action. Ministerial approvals will be reported at future meetings. The urgency for this permit is that Circus Vargas is scheduled to occur within a two-week period of time. The public can still file an '1Ppeal, as can the City Council. Acting City Planner Rehm advised that staff and the ZA took great care in providing required conditions.
27 Planning Commission Regular Meeting Minutes of April 22, 2026 Page 7 D. Staff Reports
A. The second reading of the Zoning Amendments occurred in the last City Council meeting.

B. Review of the Parklet Program was taken to the DRSC who provided recommendations on the design and operation of the parklets. Staff forwarded recommendations to the City Council. The most substantial changes are the guardrails; decks are closer to the ground to help visibility; restricted height limitations of heaters and umbrellas; furniture is a higher quality brown/black; a smaller design that uses no more than three spaces and is square to allow space for bike racks; and parklets are only allowed in front of their own business.

C. Acting City Planner Rehm noted that the City Council approved the Zoning Amendment that addressed SB 9 relating to urban lot splits.

12. ADJOURNMENT
The Planning Commission adjourned at 8:12 p.m. the Planning Commission scheduled for Wednesday, May 20, 2026 at 6:00 p.m., and will be held at the San Clemente City Hall Council Chambers located at 910 Calle Negocio, 2nd Floor, San Clemente, California .

Respectfully submitted,
Attest:
(_~
Zach Rehm, Secretary to the Planning Commission
RESOLUTION NO. PC 26-007

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF SAN CLEMENTE, CALIFORNIA, RECOMMENDING

THAT THE CITY COUNCIL APPROVE PUBLIC HEARING
PROJECT (PHP) 26-063, ZONING AMENDMENT (ZA) 26-
064, TO AMEND SAN CLEMENTE MUNICIPAL CODE
SECTIONS 17.28.270, RELATING TO ACCESSORY
DWELLING UNITS (ADUs), AND 17.88.030, RELATING TO

ZONING CODE DEFINITIONS, TO BE CONSISTENT WITH
HOUSING ELEMENT COMMITMENT AND STATE LAW; AND

RECOMMEND FINDING THIS ACTION IS EXEMPT FOM

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)

PURSUANT TO PUBLIC RESOURCES CODE (PRC)
SECTION 21080.17 AND CEQA GUIDELINES SECTION
15282(h).

WHEREAS, in 2016, Senate Bill No. 1069 (“SB 1069”), Assembly Bill No. 2299 (“AB 2299”), and Assembly Bill No. 2406 (“AB 2406”) became effective and required all California cities and counties to implement streamlining the permitting process for accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and WHEREAS, on March 5, 2019, the City Council of the City of San Clemente (“City Council”) adopted Ordinance No. 1668, which established the City of San Clemente (“City”)’s ADU ordinance and applicable development standards; and WHEREAS, on December 20, 2022, the City Council adopted Ordinance No. 1742, which amended Section 17.28.270 of the San Clemente Municipal Code (“SCMC”), to comply with further amendments to state ADU laws adopted by the California Legislature under Assembly Bill No. 345 (“AB 345”), Assembly Bill No. 2221 (“AB 2221”), and Senate Bill No. 897 (“SB 897”), regarding allowance of separate sale or conveyance of an ADU and restrictions to ADUs and JADUs; and
WHEREAS, in October, 2025, the California Department of Housing and Community Development (HCD) requested that the City update the City’s current ordinance;” WHEREAS, in late 2025, the California Legislature enacted various additional bills that further amended state ADU laws, including, Assembly Bill No. 462 (“AB 462”), Assembly Bill No. 1154 (“AB 1154”), Senate Bill No. 9 (“SB 9”); and Senate Bill No. 543 (“SB 543”); and
WHEREAS, SCMC sections 17.28.270 and 17.88.030 require amendments in order to comply with state ADU laws, as amended by the above-referenced legislation; and WHEREAS, on March 4, 2026, the Planning Commission of the City of San Clemente (“Planning Commission”) held a duly noticed public hearing on this Resolution, and continued the hearing to the Regular Planning Commission Meeting of April 22, 2026; and
ATTACHMENT 3
28 Resolution No. PC 26-007 Page 2
WHEREAS, on April 22, 2026, the Planning Commission considered written and oral comments, and facts and evidence presented by City staff, and other interested parties; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, the Planning Commission of the City of San Clemente does hereby determine, find, and resolve as follows:

Section 1. Incorporation of Recitals.

The Planning Commission hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the Planning Commission as fully set forth in this resolution.

Section 2. Planning Commission Recommendation.

Based on the entire record, including all written and oral evidence presented to the Planning Commission, and the findings made and evidence discussed in the staff report and this Resolution, the Planning Commission hereby recommends that the City Council adopt an ordinance approving Zoning Amendment 26-064 to amend SCMC sections

17.28.270 and 17.88.030, as set forth in Exhibit A to this Resolution.

PASSED AND ADOPTED at a regular meeting of the City of San Clemente Planning Commission on April 22, 2026.
___________________________________
Cameron Cosgrove, Chair
CERTIFICATION:

I HEREBY CERTIFY this Resolution was adopted at a regular meeting of the City of San Clemente Planning Commission on March 4, 2026, carried by the following roll call vote:

AYES: COMMISSIONERS:

NOES: COMMISSIONERS:

ABSTAIN: COMMISSIONERS:

ABSENT: COMMISSIONERS:
_______________________________________
Zach Rehm, Secretary of the Planning Commission
29 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING

CITY OF SAN CLEMENTE
Meeting Date: June 2, 2026 Agenda Item: 8B.

Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Assistant City Manager
Sheryl Mariano, Finance Manager
Subject:
..titl e

PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE BUDGET FOR FISCAL YEAR 2026-27 AND FISCAL YEAR 2027-28 ..body
Summary:

The Fiscal Year (FY) 2026-27 and FY 2027-28 Budget is the City of San Clemente’s work plan, which aligns resources with priorities identified by the City Council and community at large. This biennial Budget encompasses two fiscal years, with each budget taking into effect on July 1 of each year and providing financial allocations through June 30 of the following year. The municipal budget includes several funds, with the primary operating budget being the City’s General Fund. The budget is prepared with input from residents, elected officials and staff. The adoption of the budget requires the City Council to approve the budget by a majority vote.

Discussion:

On May 26, 2026, the City held a budget workshop presenting the proposed Budget. The proposed operating and capital improvement budgets for FY 2026-27 and FY 2027-28 were made available to the public for review leading up to the workshop.

The Budget workshop presentation included a summary of highlights, including a positive operating position and fully-funded emergency reserves in the General Fund. The budget maintains current service levels over the two-year period and includes service enhancements related to Council priorities for community improvement projects and staffing assignments.

Additionally, the presentation focused on potential challenges and solutions to address funding of future capital improvements and maintenance projects.

Following the presentation, staff received comments and answered questions from members of the public and City Council. Council directed staff to provide additional analysis of staffing alternatives for the Park Ranger program and to further evaluate the proposed Fiscal Policy revisions. The proposed budget includes a total of five Senior Park Ranger positions. Staff has evaluated the potential reduction of one Senior Park Ranger position, adjusting the total amount from five to four. This change would have a projected savings of $90,230 in FY 2026-27 and $96,980 in FY 2027-28. Additionally, the proposed Fiscal Policy has been revised to provide flexible options for the Council to direct Staff on the future reallocation of unassigned fund balance at year end.
1 Meeting Date: June 2, 2026 Agenda Item: 8B.

CITY OF SAN CLEMENTE
General Fund Budget Summary:

The General Fund has a balanced budget with a positive operating position of $471,620 for FY 2026-27 and $496,330 for FY 2027-28, as shown in the following chart.

General Fund Emergency Reserves continue to be fully funded at an amount equal to 18% of operating expenditures, per Fiscal Policy. The chart below illustrates the current fiscal year and the next two fiscal years Emergency Reserves.

All Funds Budget Summary:

The Budget includes revenues and expenditures for all funds, including the General Fund, Capital Improvement Program, Special Revenue, Capital Project, Enterprise, and Internal Services Funds. Summary tables including revenue, expenditures, and fund balance for each of these individual funds are attached as Exhibit I to the Resolution.

The San Clemente budget, if adopted, is subject to change by City Council action during the budget year to address unforeseen issues that arise as well as revenue and cost adjustments as actual numbers come in. Actions can be recommended and approved by the City Council to change the budget at any future City Council meeting.

Significant Capital Improvement Projects are budgeted across all funds over the next two fiscal years. FY 2026-27 has a cumulative total of $21.5 million and FY 2026-27 has a cumulative total of $20.1 million. Capital Improvement Plan Projects are listed by Fund as attachment 3.

Council Options:
 Approve Resolution No. 26-96 and adopt the FY 2026-27 and FY 2027-28 Budget.  Modify and adopt Resolution No. 26-96 and adopt the FY 2026-27 and FY 2027-28 Budget with revisions.
2 General Fund Operating Position
FY 2026-27 FY 2027-28
■ Revenues Expenditures
Fiscal Yea r Operating Expenditures 18% Emergency Reserve* FY 2025-26 {Adopted) $ 85,941,750 $15.5 million
FY 2026-27 $87,836,900 $15.8 million
FY 2027-28 $ 90,558,110 $16.3 million
Rounded
Meeting Date: June 2, 2026 Agenda Item: 8B.

CITY OF SAN CLEMENTE
 Continue the item and direct staff to make additional revisions to the FY 2026-27 and FY 2027-28 Budget prior to adoption.
 Deny the Resolution and FY 2026-27 and FY 2027-28 Budget.

Environmental Review/Analysis:

Each of the projects in the Budget has been or will be separately evaluated for compliance with the California Environmental Quality Act at a staff level as appropriate.

Fiscal Impact:

The adoption of the budget will establish funding levels for all City funds for FY 2026-27 and FY 2027-28 Budget.

Potential Action(s): ..recommendati on
If the City Council finds the Proposed Budget appropriately aligns the City’s fiscal resources with the priorities and goals of the City, the appropriate action would be to adopt Resolution No. 26-96 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

ADOPTING AND APPROVING THE BUDGET AT THE FUND LEVEL FOR THE CITY OF SAN CLEMENTE MUNICIPAL BUDGET FOR FISCAL YEARS 2026-27 AND 2027-28 AND THE COMMITMENT OF FUND

BALANCE
..end
Attachment:

1. Resolution No. 26-96

2. Exhibit I – All Funds Budget Summary for FY 2026-27 and FY 2027-28 (attached to Resolution)

3. Capital Improvement Plan Projects Summary By Fund

4. Proposed FY 2026-27 and FY 2027-28 Budget, as presented in May 26, 2026 with draft modifications identified through the budget workshop process.

Notification:

None.
3 Attachment 1
RESOLUTION NO. 26-96

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, ADOPTING AND

APPROVING THE BUDGET AT THE FUND LEVEL FOR THE

CITY OF SAN CLEMENTE MUNICIPAL BUDGET FOR
FISCAL YEARS 2026-27 AND 2027-28 AND THE

COMMITMENT OF FUND BALANCE
WHEREAS, the City Manager has prepared the City of San Clemente’s budget for the Fiscal Years ending June 30, 2027 and June 30, 2028; and WHEREAS, the proposed budget was prepared in accordance with the financial policies of the City; and
WHEREAS, the Council held a public budget workshop on May 26, 2026 for purposes of reviewing, discussing, and receiving public input on the proposed budget; and WHEREAS, the Council has adopted a financial structure that establishes a clear separation between the Operating Fund and the Capital Improvement Fund to improve transparency, accountability, and long-term financial planning; and WHEREAS, the Council finds that the existing policy for Capital Equipment Reserve and Facilities Maintenance Capital Asset Reserve is now redundant with the revised fund structure; and
WHEREAS, the revised Fiscal Policy adds language that the Council affirms that the City shall target an unassigned fund balance of approximately 2% of operating costs, with any year-end balance above that threshold available for allocation at the discretion of City Council; and
WHEREAS, the Council determines that any excess unassigned fund balance identified during the annual General Fund closing process will be brought back to Council with recommended approved uses; and
WHEREAS, the appropriations listed within the Two-Year Budget for Fiscal Years 2026-27 and 2027-28 will provide the level of services deemed appropriate by the City Manager consistent with anticipated revenues; and
WHEREAS, the proposed budget is an expenditure plan that includes the use of unassigned fund balance in Fiscal Years 2026-27 and 2027-28 for one-time capital projects and expenditures; and
WHEREAS, the proposed budget, even with the use of unassigned fund balance, ensures the maintenance of adequate reserves during Fiscal Years 2026-27 and 2027-28.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Clemente does hereby resolve as follows:
4 Resolution No. 26-96 Page 2
SECTION 1. That the Municipal Budget for the City of San Clemente totaling revenues of $186,931,550 and appropriations of $194,637,500 in Fiscal Year 2026-27 as part of the Two-Year Budget, is adopted as the Budget of the City for said fiscal years at the fund level for all funds as shown on see Exhibit I hereto which is incorporated fully by this reference.

SECTION 2. That the Municipal Budget for the City of San Clemente totaling revenues of $183,918,380 and appropriations of $188,442,500 in Fiscal Year 2027-28, as part of the Two-Year Budget, is adopted as the Budget of the City for said fiscal years at the fund level for all funds as shown on see Exhibit I hereto which is incorporated fully by this reference.

SECTION 3. General Fund Reserves are established and maintained based on the following levels within the General Fund. The City Council is authorized to expend the reserved funds by approving a formal resolution. The Emergency Reserve for FY 2026-27 and FY 2027-28 is 18% of budgeted operating expenditures in the General Fund.

SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, _______.

ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, Mayor of the City of San Clemente, California San Clemente, California
5 Resolution No. 26-96 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 26-96 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
6 Beginning Revenues Expenditures Ending Changes in %
Balance FY 2026-27 FY 2026-27 Balance Balances Change
General Fund* 26,236,864 88,916,520 94,359,900 20,793,484 (5,443,380) -21% Special Revenue Funds
Street Improvement 1,326,850 1,849,000 2,566,770 609,080 (717,770) -54% Gas Tax 3,444,630 5,224,690 7,857,290 812,030 (2,632,600) -76% Senior Mobility 340,560 137,960 188,090 290,430 (50,130) -15% Miscellaneous Grants 112,920 775,960 556,130 332,750 219,830 195% Building Homes & Jobs Act (SB2) Fund 294,560 136,220 335,610 95,170 (199,390) 0% Disaster Relief 0 0 0 0 0 0%
Air Quality Improvement 307,780 85,800 80,000 313,580 5,800 2% Local Cable Infrastructure 1,658,830 215,000 30,080 1,843,750 184,920 11% Police Grants 239,550 0 0 239,550 0 0%
Local Transit Program Grants (1,634,240) 3,668,830 2,582,690 (548,100) 1,086,140 0% Capital Project Funds
Parks Acquisition & Dev. 166,920 40,200 202,730 4,390 (162,530) -97% Local Drainage Facilities 656,660 47,500 277,480 426,680 (229,980) -35% RCFPP 967,170 22,500 9,910 979,760 12,590 1%
Public Facilities Construction Fee 477,410 54,500 14,610 517,300 39,890 8% Developers Improvement 4,768,240 240,900 12,200 4,996,940 228,700 5% In-Lieu Housing 11,481,700 42,800 6,000 11,518,500 36,800 100% Low/ Moderate Income Housing 3,165,280 25,500 80,540 3,110,240 (55,040) -2% Capital Improvement 6,256,910 8,385,000 5,280,000 9,361,910 3,105,000 50% Enterprise Funds
Water - Operating 1,147,320 31,021,012 30,303,110 1,865,222 717,902 63% - Depreciation Reserve 12,048,888 3,580,129 5,875,840 9,753,177 (2,295,711) -19% - Acreage Fee 270,889 22,890 16,450 277,329 6,440 2%
- Other Agency (81,817) 691,109 514,660 94,632 176,449 -216% Sewer - Operating 776,926 13,314,795 13,682,820 408,901 (368,025) -47% - Depreciation Reserve 134,135 3,170,618 3,104,980 199,773 65,638 49% - Connection Fee 97,727 25,022 117,700 5,049 (92,678) -95% - Other Agency 1,268,172 352,935 60,310 1,560,797 292,625 23% Storm Drain - Operating 175,460 2,128,050 2,198,040 105,470 (69,990) -40% - Depreciation Reserve (500,450) 1,594,000 1,615,790 (522,240) (21,790) 4% Solid Waste Management 402,340 1,069,100 1,185,480 285,960 (116,380) -29% Golf - Operating 2,719,848 4,158,078 5,199,450 1,678,476 (1,041,372) -38% - Depreciation Reserve 3,928,340 279,668 243,480 3,964,528 36,188 1% - Capital Improvement 856,272 1,795,404 905,470 1,746,206 889,934 104% Clean Ocean 0 0 0 0 0 #DIV/0!
Internal Service Funds
Central Services 302,460 392,620 450,360 244,720 (57,740) -19% Information Technology 304,990 2,917,180 2,827,740 394,430 89,440 29% Contract Fleet Services 425,580 1,566,798 1,590,370 402,008 (23,572) -6% Fleet Replacement Reserve 4,873,140 1,128,992 840,330 5,161,802 288,662 6% Medical Insurance 306,100 4,394,440 4,474,340 226,200 (79,900) -26% Workers' Compensation 1,980,630 575,100 661,420 1,894,310 (86,320) -4% General Liability Self Insurance 3,084,420 2,884,730 4,329,330 1,639,820 (1,444,600) -47% Total All Funds 94,789,964 186,931,550 194,637,500 87,084,014 (7,705,950) -8% * Includes transfers in/out with Revenues and Expenditure amounts All Funds Budget Summary
FY 2026-27
Exhibit 1
7 Beginning Revenues Expenditures Ending Changes in %
Balance FY 2027-28 FY 2027-28 Balance Balances Change
General Fund* 20,793,484 91,662,440 92,335,110 20,120,814 (672,670) -3% Special Revenue Funds
Street Improvement 609,080 1,849,000 2,416,770 41,310 (567,770) -93% Gas Tax 812,030 4,365,750 4,082,290 1,095,490 283,460 35% Senior Mobility 290,430 140,910 188,090 243,250 (47,180) -16% Miscellaneous Grants 332,750 425,960 396,130 362,580 29,830 9% Building Homes & Jobs Act (SB2) Fund 95,170 253,000 348,020 150 (95,020) 0% Disaster Relief 0 0 0 0 0 0%
Air Quality Improvement 313,580 85,800 80,000 319,380 5,800 2% Local Cable Infrastructure 1,843,750 215,000 10,000 2,048,750 205,000 11% Police Grants 239,550 0 0 239,550 0 0%
Local Transit Program Grants (548,100) 2,881,250 1,841,690 491,460 1,039,560 0% Capital Project Funds
Parks Acquisition & Dev. 4,390 28,200 22,730 9,860 5,470 125% Local Drainage Facilities 426,680 47,500 19,070 455,110 28,430 7% RCFPP 979,760 20,500 9,910 990,350 10,590 1%
Public Facilities Construction Fee 517,300 52,500 14,610 555,190 37,890 7% Developers Improvement 4,996,940 240,900 12,200 5,225,640 228,700 5% In-Lieu Housing 11,518,500 42,800 6,000 11,555,300 36,800 100% Low/ Moderate Income Housing 3,110,240 17,500 80,540 3,047,200 (63,040) -2% Capital Improvement 9,361,910 370,000 1,620,000 8,111,910 (1,250,000) -13% Enterprise Funds
Water - Operating 1,865,222 30,735,720 32,071,730 529,212 (1,336,010) -72% - Depreciation Reserve 9,753,177 3,470,064 4,975,840 8,247,401 (1,505,776) -15% - Acreage Fee 277,329 24,047 16,450 284,926 7,597 3%
- Other Agency 94,632 701,919 514,660 281,891 187,259 198% Sewer - Operating 408,901 13,783,248 13,953,690 238,459 (170,442) -42% - Depreciation Reserve 199,773 3,186,748 1,454,980 1,931,541 1,731,768 867% - Connection Fee 5,049 12,928 17,700 277 (4,772) -95%
- Other Agency 1,560,797 443,106 10,310 1,993,593 432,796 28% Storm Drain - Operating 105,470 2,178,050 2,256,010 27,510 (77,960) -74% - Depreciation Reserve (522,240) 5,499,000 4,961,790 14,970 537,210 -103% Solid Waste Management 285,960 877,560 1,145,200 18,320 (267,640) -94% Golf - Operating 1,678,476 4,138,453 5,104,840 712,089 (966,387) -58% - Depreciation Reserve 3,964,528 278,212 43,480 4,199,260 234,732 6% - Capital Improvement 1,746,206 1,810,485 3,005,470 551,221 (1,194,985) -68% Clean Ocean 0 0 0 0 0 #DIV/0!
Internal Service Funds
Central Services 244,720 392,620 450,780 186,560 (58,160) -24% Information Technology 394,430 2,912,180 2,929,230 377,380 (17,050) -4% Contract Fleet Services 402,008 1,563,420 1,631,810 333,618 (68,390) -17% Fleet Replacement Reserve 5,161,802 1,102,370 892,310 5,371,862 210,060 4% Medical Insurance 226,200 4,493,440 4,574,340 145,300 (80,900) -36% Workers' Compensation 1,894,310 575,100 707,770 1,761,640 (132,670) -7% General Liability Self Insurance 1,639,820 3,040,700 4,240,950 439,570 (1,200,250) -73% Total All Funds 87,084,014 183,918,380 188,442,500 82,559,894 (4,524,120) -5% * Includes transfers in/out with Revenues and Expenditure amounts All Funds Budget Summary
FY 2027-28
8 Budget Budget
Fund Category Project Type FY 2026-27 FY 2027-28
Capital Improvement Facilities Beach Club Repairs Maint 160,000 - Capital Improvement Facilities City Hall Emergency Operations Center CIP 150,000 - Capital Improvement Facilities Senior Center HVAC Replacements CIP 150,000 - Capital Improvement Parks and Beaches Bonito Canyon Park Tennis Courts CIP 260,000 - Capital Improvement Parks and Beaches Liberty Park Playground Equipment CIP - 300,000 Capital Improvement Parks and Beaches Lifeguard Tower Replacements CIP 120,000 120,000 Capital Improvement Parks and Beaches Pier Improvement and Repairs Maint 700,000 - Capital Improvement Parks and Beaches San Gorgonio Park Tennis Courts CIP 68,000 - Capital Improvement Parks and Beaches San Luis Rey Park Tennis Courts CIP 42,000 - Capital Improvement Parks and Beaches San Luis Rey Restroom Replacement CIP 200,000 - Capital Improvement Parks and Beaches Sand Replenishment CIP - 1,000,000 Capital Improvement Parks and Beaches Shoreline Monitoring Study 100,000 100,000 Capital Improvement Parks and Beaches T Street Overpass Assessment Study 100,000 - Capital Improvement Parks and Beaches Tierra Grande Park Playground Equipment CIP 325,000 - Capital Improvement Streets and Medians Del Mar Phase I Undergrounding District CIP 2,750,000 - Gas Tax Facilities North Beach Train Station improvements CIP 960,000 - Gas Tax Streets and Medians Arterial Street Improvement Program CIP 750,000 750,000 Gas Tax Streets and Medians As Needed Street Improvements Maint 700,000 700,000 Gas Tax Streets and Medians Avenida Victoria Sidewalk and Underpass CIP 450,000 Gas Tax Streets and Medians Bulb Out Extension-Calle Seville & Ola Vista CIP - 150,000 Gas Tax Streets and Medians Calafia Complete Streets CIP 900,000 - Gas Tax Streets and Medians East-side San Luis Rey Sidewalk Installation CIP - 100,000 Gas Tax Streets and Medians Electrification Charging Station CIP 75,000 - Gas Tax Streets and Medians In-pavement Lighting System Replacement CIP 300,000 - Gas Tax Streets and Medians Local Street Improvements CIP 750,000 750,000 Gas Tax Streets and Medians Max Berg Park ADA Ramp and Parking Maint 100,000 - Gas Tax Streets and Medians Pavement Improvements Palizada I-5 to ECR CIP 300,000 - Gas Tax Streets and Medians Pico Widening I- to Frontera CIP 600,000 - Gas Tax Streets and Medians Signalized Intersection Maintenance Maint 50,000 50,000 Gas Tax Streets and Medians Street Light LED Conversion CIP 250,000 - Gas Tax Streets and Medians Traffic Control and High Speed Feedback Maint 25,000 25,000 Gas Tax Streets and Medians Traffic Signal Camera Replacement CIP 150,000 150,000 Gas Tax Water Quality Trash Capture Devices CIP 705,000 750,000 General Facilities Major Facilities Maintenance Maint 300,000 300,000 General Streets and Medians Major Street Maintenance Maint 550,000 550,000 General Streets and Medians Pavement Preservation Program Maint 250,000 250,000 General Streets and Medians Sidewalk Repairs Maint 150,000 150,000 Golf Improvement Parks and Beaches Driving Range Fence Extension CIP 200,000 - Golf Improvement Parks and Beaches Golf Course Bunker Renovations CIP 200,000 1,500,000 Golf Improvement Parks and Beaches Golf Maintenance Yard Asphalt Replacement CIP 50,000 - Golf Improvement Parks and Beaches Golf Course Irrigation System Replacement CIP 250,000 1,500,000 Park Acq & Development Parks and Beaches Vista Hermosa Sports Park Meadows Dev. CIP 180,000 - Sewer Depreciation Utility Beach Trail Sewer Trunk Lining CIP 700,000 - Sewer Depreciation Utility Headworks Grit Cyclone Replacement CIP 550,000 - Sewer Depreciation Utility Los Molinos Lift Station Generator CIP - 800,000 Sewer Depreciation Utility Los Molinos Wet Well Lining CIP - 150,000 Sewer Depreciation Utility Vactor Discharge Station CIP 100,000 - Sewer Depreciation Utility WRP Boiler Replacement CIP 1,200,000 - Storm Drain Depreciation Water Quality Calle Doncella Outlet Improvements CIP 600,000 - Storm Drain Depreciation Water Quality MO2 Culvert @ Pico and ECR CIP 454,000 - Storm Drain Depreciation Water Quality Poche Beach Water Reclamation project CIP 350,000 4,750,000 Street Improvement Streets and Medians Alley/Parking Lot Rehabilitation Program CIP 200,000 200,000 Street Improvement Streets and Medians Street Rehabilitation Program CIP 1,500,000 1,500,000 Water Depreciation Utility Acapulco Pump Station Rehabilitation CIP - 300,000 Water Depreciation Utility Pico Booster PS Pump Replacement CIP 1,500,000 - Water Depreciation Utility Reata Pump Station Rehabilitation CIP - 3,200,000 Total Capital Improvement Plan* 21,474,000 20,095,000
* Excludes equipment
Capital Improvement Plan Projects
Summary of Budgeted Projects - By Fund
Attachment 3
9 Budget Budget
Fund Category Project Type FY 2026-27 FY 2027-28
Capital Improvement Facilities Beach Club Repairs Maint 160,000 - Capital Improvement Facilities City Hall Emergency Operations Center CIP 150,000 - Capital Improvement Facilities Senior Center HVAC Replacements CIP 150,000 - Gas Tax Facilities North Beach Train Station improvements CIP 960,000 - General Facilities Major Facilities Maintenance Maint 300,000 300,000 Capital Improvement Parks and Beaches Bonito Canyon Park Tennis Courts CIP 260,000 - Capital Improvement Parks and Beaches Liberty Park Playground Equipment CIP - 300,000 Capital Improvement Parks and Beaches Lifeguard Tower Replacements CIP 120,000 120,000 Capital Improvement Parks and Beaches Pier Improvement and Repairs Maint 700,000 - Capital Improvement Parks and Beaches San Gorgonio Park Tennis Courts CIP 68,000 - Capital Improvement Parks and Beaches San Luis Rey Park Tennis Courts CIP 42,000 - Capital Improvement Parks and Beaches San Luis Rey Restroom Replacement CIP 200,000 - Capital Improvement Parks and Beaches Sand Replenishment CIP - 1,000,000 Capital Improvement Parks and Beaches Shoreline Monitoring Study 100,000 100,000 Capital Improvement Parks and Beaches T Street Overpass Assessment Study 100,000 - Capital Improvement Parks and Beaches Tierra Grande Park Playground Equipment CIP 325,000 - Golf Improvement Parks and Beaches Driving Range Fence Extension CIP 200,000 - Golf Improvement Parks and Beaches Golf Course Bunker Renovations CIP 200,000 1,500,000 Golf Improvement Parks and Beaches Golf Maintenance Yard Asphalt Replacement CIP 50,000 - Golf Improvement Parks and Beaches Golf Course Irrigation System Replacement CIP 250,000 1,500,000 Park Acq & Development Parks and Beaches Vista Hermosa Sports Park Meadows Dev. CIP 180,000 - Capital Improvement Streets and Medians Del Mar Phase I Undergrounding District CIP 2,750,000 - Gas Tax Streets and Medians Arterial Street Improvement Program CIP 750,000 750,000 Gas Tax Streets and Medians As Needed Street Improvements Maint 700,000 700,000 Gas Tax Streets and Medians Avenida Victoria Sidewalk and Underpass CIP 450,000 Gas Tax Streets and Medians Bulb Out Extension-Calle Seville & Ola Vista CIP - 150,000 Gas Tax Streets and Medians Calafia Complete Streets CIP 900,000 - Gas Tax Streets and Medians East-side San Luis Rey Sidewalk Installation CIP - 100,000 Gas Tax Streets and Medians Electrification Charging Station CIP 75,000 - Gas Tax Streets and Medians In-pavement Lighting System Replacement CIP 300,000 - Gas Tax Streets and Medians Local Street Improvements CIP 750,000 750,000 Gas Tax Streets and Medians Max Berg Park ADA Ramp and Parking Maint 100,000 - Gas Tax Streets and Medians Pavement Improvements Palizada I-5 to ECR CIP 300,000 - Gas Tax Streets and Medians Pico Widening I- to Frontera CIP 600,000 - Gas Tax Streets and Medians Signalized Intersection Maintenance Maint 50,000 50,000 Gas Tax Streets and Medians Street Light LED Conversion CIP 250,000 - Gas Tax Streets and Medians Traffic Control and High Speed Feedback Maint 25,000 25,000 Gas Tax Streets and Medians Traffic Signal Camera Replacement CIP 150,000 150,000 General Streets and Medians Major Street Maintenance Maint 550,000 550,000 General Streets and Medians Pavement Preservation Program Maint 250,000 250,000 General Streets and Medians Sidewalk Repairs Maint 150,000 150,000 Street Improvement Streets and Medians Alley/Parking Lot Rehabilitation Program CIP 200,000 200,000 Street Improvement Streets and Medians Street Rehabilitation Program CIP 1,500,000 1,500,000 Sewer Depreciation Utility Beach Trail Sewer Trunk Lining CIP 700,000 - Sewer Depreciation Utility Headworks Grit Cyclone Replacement CIP 550,000 - Sewer Depreciation Utility Los Molinos Lift Station Generator CIP - 800,000 Sewer Depreciation Utility Los Molinos Wet Well Lining CIP - 150,000 Sewer Depreciation Utility Vactor Discharge Station CIP 100,000 - Sewer Depreciation Utility WRP Boiler Replacement CIP 1,200,000 - Water Depreciation Utility Acapulco Pump Station Rehabilitation CIP - 300,000 Water Depreciation Utility Pico Booster PS Pump Replacement CIP 1,500,000 - Water Depreciation Utility Reata Pump Station Rehabilitation CIP - 3,200,000 Gas Tax Water Quality Trash Capture Devices CIP 705,000 750,000 Storm Drain Depreciation Water Quality Calle Doncella Outlet Improvements CIP 600,000 - Storm Drain Depreciation Water Quality MO2 Culvert @ Pico and ECR CIP 454,000 - Storm Drain Depreciation Water Quality Poche Beach Water Reclamation project CIP 350,000 4,750,000 Total Capital Improvement Plan* 21,474,000 20,095,000
* Excludes equipment
Capital Improvement Plan Projects
Summary of Budgeted Projects - By Category
10 Biennial Budget
City of San Clemente
Fiscal Years 2026-27 & 2027-28
Attachment 4
11 12
Biennial
Budget
Fiscal Years
2026-27
2027-28
Rick Loeffler
Mayor
Steve Knoblock
Mayor Pro Tem
Victor Cabral
Council Member
Mark Enmeier
Council Member
Zhen Wu
Council Member
13 14
Table of Contents
Cover .........................................................................................................................................................................................1 Introductory Section
Budget Title Page...................................................................................................................................................................3 Table of Contents..................................................................................................................................................................5 Council Photo ........................................................................................................................................................................9 City Organization Chart .......................................................................................................................................................11 Financial Accomplishments.................................................................................................................................................12 Executive Summary (City Manager Transmittal Letter) .......................................................................................................13 Fiscal Year 2025 and 2026 Accomplishments......................................................................................................................21 San Clemente at a Glance....................................................................................................................................................25 Reader’s Guide to the Budget .............................................................................................................................................28 Budget Overview
Financial Overview ..............................................................................................................................................................32 Budget Process....................................................................................................................................................................43 Accounting Systems & Controls...........................................................................................................................................45 All Funds Summary
All Funds Budget Overview..................................................................................................................................................49 All Funds Budget Summary FY 2026-27 ...............................................................................................................................50 All Funds Budget Summary FY 2027-28 ...............................................................................................................................51 All Funds Summary – Revenues by Category FY 2026-27 ....................................................................................................52 All Funds Summary – Expenditures by Category FY 2026-27 ..............................................................................................53 All Funds Summary – Revenues by Category FY 2027-28 ....................................................................................................54 All Funds Summary – Expenditures by Category FY 2027-28 ..............................................................................................55 All Funds Summary – Budget Comparisons by Fund - Revenues.........................................................................................56 All Funds Summary – Budget Comparisons by Fund - Expenditures...................................................................................57 All Funds Revenue Summary ...............................................................................................................................................59 All Funds Revenues by Line Item.........................................................................................................................................60 All Funds Revenue Assumptions..........................................................................................................................................65 All Programs Expenditure Summary....................................................................................................................................69 All Funds Expenditures Summary........................................................................................................................................75 All Funds Expenditures by Line Item ...................................................................................................................................76 General Fund Revenues & Expenditures
General Fund Revenues and Expenditures – FY 2026-27 ....................................................................................................81 General Fund Revenues and Expenditures – FY 2027-28 ....................................................................................................82 General Fund Summary - Revenues and Expenditures .......................................................................................................83 General Fund - Fund Balance ..............................................................................................................................................84 General Fund Revenue Summary by Category....................................................................................................................85 General Fund Revenue Overview........................................................................................................................................86 General Fund Revenues by Line Item..................................................................................................................................87 General Fund Revenue Assumptions...................................................................................................................................91 General Fund Expenditure Summary by Category ..............................................................................................................95 General Fund Expenditure Overview ..................................................................................................................................96 General Fund Expenditures by Line Item ............................................................................................................................97 General Fund Expenditures by Department......................................................................................................................101 General Government
General Government Overview........................................................................................................................................ 103 General Government Department Summary ................................................................................................................... 104 Legislative Division Summary .......................................................................................................................................... 106 City Manager Department Summary ............................................................................................................................... 107 City General Department Summary ................................................................................................................................. 108 City Clerk Department Summary...................................................................................................................................... 109 Economic Development Department Summary................................................................................................................110 5 15
Table of Contents
Finance & Administrative Services
Finance & Administrative Services Overview ................................................................................................................... 111 Finance & Administrative Services Department Summary............................................................................................... 112 Finance & Administrative Services Administration Summary ......................................................................................... 114 Finance Division Summary ............................................................................................................................................... 115 Human Resources Division Summary............................................................................................................................... 116 Public Safety
Public Safety Overview..................................................................................................................................................... 117 Public Safety Department Summary ................................................................................................................................ 118 Police Services Summary ................................................................................................................................................. 120 Fire Services Summary ..................................................................................................................................................... 121 Marine Safety Division Summary ..................................................................................................................................... 122 Community Development
Community Development Overview ................................................................................................................................ 123 Community Development Department Summary............................................................................................................ 124 Administration Division Summary ................................................................................................................................... 126 Building Division Summary............................................................................................................................................... 127 Planning Division Summary .............................................................................................................................................. 128 Code Compliance Division Summary................................................................................................................................ 129 Public Works
Public Works Overview..................................................................................................................................................... 131 Public Works Department Summary ................................................................................................................................ 132 Administration Division Summary ....................................................................................................................................134 Engineering Division Summary......................................................................................................................................... 135 Facilities & Street Maintenance Services Division Summary............................................................................................ 136 Beaches Parks Maintenance Division Summary ............................................................................................................... 137 Beaches, Parks & Recreation
Beaches, Parks & Recreation Overview............................................................................................................................ 139 Beaches, Parks & Recreation Department Summary ....................................................................................................... 140 Administration Division Summary ................................................................................................................................... 142 Recreation Division Summary .......................................................................................................................................... 143 Special Revenue Funds
Special Revenue Funds Overview..................................................................................................................................... 145 Street Improvement Fund ............................................................................................................................................... 147 Gas Tax Funds ................................................................................................................................................................... 149 Senior Mobility Fund ........................................................................................................................................................ 151 Miscellaneous Grants Fund .............................................................................................................................................. 152 Disaster Relief Fund.......................................................................................................................................................... 153 Air Quality Improvement Fund......................................................................................................................................... 154 Local Cable Infrastructure Fund ....................................................................................................................................... 155 Police Grants Fund ........................................................................................................................................................... 156 Local Transit Program Fund.............................................................................................................................................. 157 Building Homes & Jobs Act (SB2) Fund............................................................................................................................. 158 Capital Project Funds
Capital Project Funds Overview........................................................................................................................................ 159 Parks Acquisition & Development Fund .......................................................................................................................... 161 Local Drainage Facilities Fund ...........................................................................................................................................162 RCFPP Fund ...................................................................................................................................................................... 163 Public Facilities Construction Fee Fund ............................................................................................................................ 164 Developers Improvement Fund........................................................................................................................................ 166 Capital Improvement Fund............................................................................................................................................... 167 Low/Moderate Income Housing Fund.............................................................................................................................. 169 In-Lieu Housing Fund........................................................................................................................................................ 170 6 16
Table of Contents
Enterprise Funds
Enterprise Funds Overview ...............................................................................................................................................171 Enterprise Funds Operating Summary ..............................................................................................................................174 Water Operating Division Summary..................................................................................................................................175 Sewer Operating Division Summary..................................................................................................................................176 Storm Drain Operating Division Summary.........................................................................................................................177 Clean Ocean Operating Division Summary........................................................................................................................178 Solid Waste Operating Division Summary .........................................................................................................................179 Golf Operating Division Summary .....................................................................................................................................180 Water Depreciation Reserve Fund ....................................................................................................................................187 Water Acreage Fee Reserve Fund .....................................................................................................................................183 Water Other Agency Depreciation Reserve Fund..............................................................................................................184 Sewer Depreciation Reserve Fund ....................................................................................................................................185 Sewer Connection Fee Reserve Fund ................................................................................................................................187 Sewer Other Agency Depreciation Reserve Fund..............................................................................................................188 Storm Drain Utility Depreciation Reserve Fund.................................................................................................................189 Golf Depreciation Reserve Fund........................................................................................................................................191 Golf Capital Improvement Reserve Fund ..........................................................................................................................192 Internal Service Funds
Internal Service Funds Overview.......................................................................................................................................193 Central Services Fund ........................................................................................................................................................195 Information Technology Fund ...........................................................................................................................................196 Fleet Services Fund............................................................................................................................................................197 Fleet Replacement Reserve Fund......................................................................................................................................198 Medical Insurance Fund ....................................................................................................................................................201 Workers’ Compensation Fund...........................................................................................................................................202 General Liability Self-Insurance Fund ................................................................................................................................203 Capital Improvement Program (CIP)
Capital Improvement Plan Projects - Graphs.....................................................................................................................205 CIP Overview and Summary ..............................................................................................................................................207 Map of Major CIP Projects.................................................................................................................................................210 Summary of Budget CIP Projects – Category.....................................................................................................................211 Summary of Budget CIP Projects – Fund ...........................................................................................................................212 City Facilities Master Plan Summary .................................................................................................................................213 Facilities– Project Sheets...................................................................................................................................................214 Parks & Beaches Master Plan Summary............................................................................................................................219 Parks & Beaches – Project Sheets .....................................................................................................................................220 Streets and Medians Master Plan Summary .....................................................................................................................237 Streets and Medians – Projects Sheets .............................................................................................................................238 Utilities Master Plan Summary..........................................................................................................................................261 Utilities – Project Sheets ...................................................................................................................................................263 Water Quality (Drainage) Master Plan Summary ..............................................................................................................273 Water Quality (Drainage) – Project Sheets ........................................................................................................................274 Summary of Future Projects – By Category.......................................................................................................................279 CIP Carry Forward Projects................................................................................................................................................280 Fiscal Policy & Debt Summary
Appropriations Limit..........................................................................................................................................................283 Debt Summary...................................................................................................................................................................285 Fiscal Policy Statement......................................................................................................................................................289 Performance Measures
Performance Measures - Summary...................................................................................................................................299 Performance Measures by Department............................................................................................................................300 7 17
Table of Contents
Staffing
Staffing ..............................................................................................................................................................................315 Staffing Chart.....................................................................................................................................................................317 Staffing Table.....................................................................................................................................................................319 Contract Staffing Chart......................................................................................................................................................325 Pension Summary..............................................................................................................................................................327 Glossary
Acronyms...........................................................................................................................................................................329 Glossary.............................................................................................................................................................................331 Appendix
Long Term Financial Plan...................................................................................................................................................329 Demographic and Statistical Information ................................................................................................................Back Cover This entire document can also be downloaded from the City’s website: https://sanclemente.gov . 8 18
2026 San Clemente City Council
Mayor Rick Loeffler, Mayor Pro Tem Steve Knoblock
Council Members Victor Cabral, Mark Enmeier and Zhen Wu 9 19
<J,,tission Statement
The City of San Clemente, in partnership with
the community we serve, will foster a
tradition dedicated to:
• Maintaining a safe, healthy atmosphere
in which to live, work and play;
• Guiding development to ensure
responsible growth while preserving and
enhancing our village character,
unique environment and natural amenities;
• Providing for the City's long term
stabilitythrough promotion of
economic vitality and diversity;
• Resulting in a balanced community
committed to protection of what is valued
today while meeting tomorrow's needs.
10 20
San Clemente Organization Chart
Beaches, Parks
& Recreation
Samantha
Wylie
Public Works
Dave
Rebensdorf
City Attorney
Elizabeth Mitchell
Citizens of
San Clemente
Storm
Drain
City Clerk
(Appointed)
Laura
Campagnolo
Code
Compliance
City Council
Mayor
Rick Loeffler
Mayor Pro Tem
Steve Knoblock
Council Members
Victor Cabral
Mark Enmeier
Zhen Wu
Golf
Water
Shading indicates contracted services
Police Services
OCSD
Fire Services
OCFA
City Treasurer
(Appointed)
Charlie
Smith
Commissions &
Committees
Marine
Safety
Human
Resources
Recreation
Information
Technology
Administrative
Services
Brian Brower
City Clerk
Laura
Campagnolo
Utilities
Dave
Rebensdorf
Sewer
Maintenance
Services
Public
Safety Community
Development
Adam Atamian
Capital
Improvement
Projects
Building Finance
Planning
Fleet
Engineering
Environmental
Programs
City Manager
Andy Hall
Assistant City Manager
Brian Brower
11 21
I
I
I

I I I I I

I I I I
I I

I I I I
I
I I I
I I
I
Financial Accomplishments

The Government Finance Officers Association of
the United States and Canada (GFOA) presented a
Distinguished Budget Presentation Award to the
City of San Clemente, California for its annual
budget for the fiscal year beginning July 1, 2024.

In order to receive this award, a governmental
unit must publish a budget document that meets
program criteria as a policy document, as a
financial plan, as an operations guide, and as a
communications device.

The award is valid for the budget period only. We
believe our current budget continues to conform
to the program requirements, and we are
submitting it to GFOA to determine its eligibility
for another award.

AAA---An obligation rated 'AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

Standard and Poor’s reaffirmed the City’s long-term financial “AAA” rating and stable outlook in August 2015.

SAN CLEMENTE (AAA)
“San Clemente is the southernmost city
in Orange County, located on the
Pacific Ocean. Although a primarily
wealthy residential community, the city
also has some office and retail areas. In
our view, financially, the city has
performed very well in recent years
and has maintained an unreserved fund
balance of more than 40% of
expenditures since 2001. We
understand that the city does not have
any plans to issue debt in the next
couple years.”
12 22

GOVERNMENT FINANCE OFFICERS ASSOCIATION
D;st;nguished
Budget Presentation
Award
PRESL.,TI.DTO
City of San Clemellle
C:1lifon1i:l
For tbt Bimum B,guming
July 01, 2024
~P-~ £:u~urin Dinuor
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary
Honorable Mayor and Councilmembers:

The City budget is far more than a financial plan or a fiscal report. The budget aligns the resources and priorities of the City with the delivery of community services, investment in necessary improvements, and planning for future opportunities. Effective budgeting results in a balance of current, near-term and future financial needs while avoiding impulsive, emotional or politically driven decisions. The proposed budget reflects a commitment to prudent stewardship of public funds with strategic investments that enhance quality of life, strengthen infrastructure, and support economic vitality.

The Proposed Biennial Budget for Fiscal Years of 2026-27 and 2027-28 reflects a balanced budget for all City funds in each year with anticipated revenue slightly higher than proposed operational expenses. The budget includes an Executive Summary followed by extensive budget detail, and a more concise document that allows readers to obtain accurate high-level information. A key modification from previously adopted budgets is a clear distinction between the operating budget and the Capital Improvements Program.

Some of the guiding principles of the budget preparation include:
• Maintain current municipal service levels
• Improve operating position
• Increase financial reserves
• Include identified priorities; coastal issues, public safety and address pension liability Budget Overview
The proposed budget reflects a generally stable position in all budgeted funds, including the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds. The General Fund continues to reflect a positive operating position in both fiscal years with a positive operating position of $471,620 for FY 2027 and $496,330 for FY 2028 as indicated in the following graph:
$30.0
$50.0
$70.0
$90.0
$110.0
FY 2026-27 FY 2027-28
$88.3 $91.1 $87.8 $90.6
General Fund Operating Position
Revenues Expenditures
13 23
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary
General Fund Operating Revenue
General Fund operating revenues are budgeted in FY 2027 at $88.3 million and $91.1 million in FY 2028, showing stability and modest growth. The following graph of General Fund revenue by category illustrates the significance of Property Tax and Sales Tax. Of note, the City receives approximately 15% of the Property Tax paid by owners of property within the City, and a 1% sales tax collected on local sales and the remaining 6.75% sales tax distributed to other taxing entities with the State of California receiving the largest share (6%).

General Fund Operating Expenditures
General Fund operating expenditures are budgeted at $87.8 million in FY 2027 and $90.6 in FY 2028. Expenditures are listed by department in the chart below. The largest departments within the General Fund are Public Safety and Public Works. Public Safety including Police, Fire and Marine Safety encompass 49% of the FY 2027 and FY 2028 expenditures, and Public Works comprises 21% of the FY 2027 and FY 2028 expenditures. The Public Works budget includes engineering, streets, facilities, park maintenance and other infrastructure maintenance costs.

General Fund operating expenditures by department are included in the graph below.

Property
Tax Sales Tax OtherTaxes
Permit &
Fees Intergov. ServiceCharges Fines Interest &Rents
Other
Revenue
FY 2026-27 $50.1 $12.9 $6.9 $1.5 $0.7 $8.1 $0.6 $4.1 $3.2 FY 2027-28 $52.1 $13.2 $7.1 $1.5 $0.7 $8.2 $0.6 $4.4 $3.2 $-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
General Fund Operating Revenues
FY 2026-27 FY 2027-28
Gen Government Fin & Adm Svcs Public Safety Comm Dev Public Works Beach, Park & Rec
FY 2026-27 $6.5 $4.5 $42.6 $8.3 $18.7 $7.2
FY 2027-28 $6.7 $4.7 $44.0 $8.6 $19.2 $7.3
$-
$10.0
$20.0
$30.0
$40.0
$50.0
General Fund Expenditures by Department
FY 2026-27 FY 2027-28
14 24
■
■
■
■
■
■
■
■
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary
General Fund Emergency Reserves
The General Fund Emergency Reserve is fully funded throughout the Budget period. The City Council has adopted a Fiscal Policy to maintain an Emergency Reserve at no less than 18% of General Fund operating expenditures. The Emergency Reserve based on the FY 2026 Budget was $15.5 million and increases to $16.3 million at June 30, 2028.

Fiscal Year Operating Expenditures 18% Emergency Reserve* FY 2025-26 (Adopted) $ 85,941,750 $15.5 million
FY 2026-27 $ 87,836,900 $15.8 million
FY 2027-28 $ 90,558,110 $16.3 million
* Rounded
General Fund “Unassigned” Fund Balance
At the end of the Fiscal Year, any surplus revenue and expenditures not fully utilized are returned to Fund Balance. The Fund Balance Reserves include the Emergency Reserve, Section 115 Trust, and Accrued Leave Reserve. In addition to one-time revenues such as grants, the City has historically used Unassigned Fund Balance to fund one-time expenditures such as capital projects, studies, and transfers. The Proposed Budget maintains an Unassigned General Fund Balance of $1.7 million at the end of the budget period on June 30, 2028. 15 25
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary
Capital Improvement Program (CIP)
The Capital Improvement Program (CIP) budget reflects prioritization of projects and community investments to satisfy the needs and expectations of the community. Capital improvements include the building, upgrading, replacement, and major maintenance of City infrastructure, such as residential and arterial streets, sidewalks, traffic signals, water, sewer, storm drain, and other capital assets.

Significant Capital Improvement Projects include:
• Pico Widening / Bike Path from I-5 to Frontera
• Sand Replenishment (Partial Funding) and related Shoreline Monitoring • Golf Course Irrigation, Bunker Renovations, and Driving Range Fence Extension • Avenida Victoria Sidewalk and Underpass Improvements
• Pier Improvement and Repairs
• Poche Beach Water Reclamation
• Storm Drain Trash Capture Devices
$20.1
$13.4 $13.1 $14.8 $17.0
$21.4
$14.3
$37.6
$14.3 $13.5
$0.0
$10.0
$20.0
$30.0
$40.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Capital Improvement Program
FY 2017 to FY 2026
($ in Millions)
16 26
Utility $4,050,000 19%
Streets aL Medians
$10,800,000 50%

C/P ACTIVITY BY CATEGORY
FY 2026-27
Water Quality $2,109,000
10%
Facilities
$1,720,000 8%
Parks and
Beaches
$2,795,000 13%
Utility $4,450,000
22%
FY 2027-28
J reets and Medians
$5,325,000 27%
Water Quality
$5,500,000 27%
Facilities $300,000
1%
Parks and Beaches
$4,520,000 23%
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary • City Hall Emergency Operations Center • Beach Club, Senior Center Repairs and other Major Facilities Maintenance • Bonito Canyon, San Gorgonio and San Luis Rey Tennis Court Improvements • Tierra Grande and Liberty Park Playground Equipment Replacement • T-Street Overpass Assessment
• Various Street, Sidewalk, Intersection and Pavement Improvements Key Budget Elements: Staffing and Safety
Proposed staffing changes for this Budget primarily emphasize strategic reclassifications, operational realignment, supervisory structure enhancements, critical vacancy management, and development of specialized classifications to address identified departmental needs. Several proposed changes are designed not only to address current service demands, but also to proactively position the City for future operational continuity. The Proposed Budget includes the following staffing refinements to better address operational needs & priorities:

Public Works
• Reclassify (1) vacant Associate Civil Engineer to Management Analyst • Reclassify (1) vacant Sr. 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) Sr. Park Ranger Position
• Regrade of Sr. 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 17 27
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary • Add Sr. 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
• Reclassify (1) Accounting Specialist to Junior Accountant • Regrade 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.

A strong emphasis remains on public safety and quality of life within the City. The City continues to fund Public Safety at current service levels, including Police and Fire Services, Marine Safety, as well as a refined Park Ranger program.
18 28
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary
Future Challenges: Sand, Slopes, and Storm Drainage
The marine environment in the City is currently suffering from natural erosion and funding constraints resulting in the loss of sand on the beaches, landslides, bluff erosion, and deferred maintenance of facilities including the iconic San Clemente Pier and the Beach Trail.

SAND
A current project in partnership with the United States Army Corps of Engineers initially placed more than 200,000 cubic yards of sand on a portion of the San Clemente coastline, and during the lifetime of the 50-year project, more than 2 million cubic yards of sand will be placed between T Street and Linda Lane on the San Clemente coast. Future phases of the project remain mostly unfunded although $1 million has been included in the proposed two-year budget. The anticipated local (City) share of the project will be approximately $116 million or about $2.5 million per year. Complete funding has not been identified.

The current project only addresses a portion of the coastline. To restore the remaining beaches, the City obtained approval of a Sand Compatibility and Opportunistic Use Program (SCOUP) that allows sand to be placed on other beaches in the City. The City continues to explore potential sources of sand.

SLOPES
Slope stabilization and removal of the debris is very expensive. Railroad and trail closures must be addressed, and preventative actions are not only expensive, but difficult to implement in advance of unpredictable earth movement.

CLEAN OCEAN (STORM DRAINAGE, STREET SWEEPING)
Proper collection and diversion of storm drainage, along with other activities to protect and improve water quality are critical in a beach community. Revenues collected into the Storm Drain Fund are insufficient to cover ongoing related activities, necessitating support from the General Fund.
19 29
City of San Clemente Biennial Budget
Fiscal Years 2026-27 & 2027-28
Executive Summary
Section 115 Trust Account
The California Public Employees Retirement System (CalPERS) provides retirement pensions for past, current and future employees of San Clemente. CalPERS invests member contributions using a variety of strategies in accordance with adopted policies. Over time, the investment policies and the anticipated rate of return on investments has not achieved the projected dividends in the system resulting in an unfunded accrued liability (UAL). The City Council authorized the implementation of a Section 115 Trust Account placing funds in a restricted account which can only be used to pay for pension obligations to address the growth of the UAL.

Summary
Staff continue to focus on implementing the City Council’s strategic priorities while maintaining a balanced budget, providing quality services to residents, and implementing the adopted Capital Improvement Program.

City Manager
(Please note that numbers in this document have been rounded) 20 30
Fiscal Year 2025 and 2026 Accomplishments by Department Beaches, Parks and Recreation
Maintenance
 Replaced artificial fields at Vista Hermosa Park Fields 5 & 6  Repaired Tierra Grande Park trellis
 Coordinated Arbor Day tree planting
 Painted Del Mar street light poles
Recreation
 Established the City’s first Tree Farm to support sustainable landscaping and reduce longterm costs.  Increased focus on revenue diversification through new program offerings, evaluation of premium services, and exploration of alternative funding sources, including grants and sponsorships.
 Expanded community programming and special events, increasing participation and activation of public spaces, including beach programming, aquatics events, and seasonal offerings.
 Executed development of the Richard T. Steed Memorial Park Pump Track project, including successful donor coordination, design advancement, and grand opening event.  Developed and advanced a new Cost Recovery Policy (No. 201-15) and comprehensive fee schedule update, establishing a transparent, equitable framework for program and facility pricing.

Community Development
 Updated multiple portions of the City’s Zoning Ordinance, including (1) the City’s Parklet Dining Program regulations and design standards to address community and business concerns, and extended the program until 2029, (2) the City’s ADU processing and design review practices to comply with state law, (3) Emergency Shelter Overlay (ESO) standards and expanded eligible areas to ensure 5–10 acres suitable for development with access to transportation and services, and (4) initiation of a three-part Zoning Ordinance update to streamline permitting and clarify code requirements, and completed parts 1 and 2 of those amendments.
 Adopted and secured FEMA approval of the City’s first comprehensive Local Hazard Mitigation Plan update in over 20 years, strengthening hazard preparedness and eligibility for disaster funding. Subsequently, developed a City Wildfire Prevention Strategy in concert with the submittal of a FEMA Hazard Mitigation Grant Program application to acquire funds to implement the program. Further evaluated Emergency Management needs to establish a five-year Emergency Management Strategic Plan, to help facilitate the transition of this program under the Community Development Department.
 Coordinated the development of a Property Transfer Implementation Agreement to identify a roadmap of property ownership considerations between the City and neighboring stakeholders, should property currently owned by the Transportation Corridor Agencies be transferred to the City.
21 31
 Oversaw the successful processing of the Lodge at the Outlets hotel project, including an Addendum to the Marblehead Coastal EIR, and coordination and outreach with neighboring residents to ensure community concerns were adequately addressed.  Significantly reduced the number of complaints received by the City regarding unhoused individuals in San Clemente, through efforts of the City’s Community Outreach Team in working to connect individuals with shelter and housing opportunities, coordinating family reunifications, and providing resources and coordinating with external agencies.

Additionally, the efforts of the Park Ranger Division, including development and implementation of standard operating procedures (SOPs), ensured the City’s curfews applicable to beaches and parks are respected, and addressing storage of personal items in public areas.
 FY 2024–25 and FY 2025–26 (YTD), the Building Division issued 4,119 permits, performed 4,642 plan checks, and conducted 19,155 inspections.
 Modernized the City’s wireless facilities leasing program and lease rate structure to better align with the contemporary best management practices in comparable jurisdictions Finance and Administrative Services
 Implemented a digital, citizen focused customer relationship management system that allows residents to report non emergency neighborhood issues such as graffiti or broken street lights via a mobile app or website.
 The City debuted a new City Website that is ADA compliant with enhanced searching capabilities.
 Implemented a Water cost of service rate analysis study and implemented new rates.  Implemented new federal regulation regarding overtime reporting requirements.  Completed implementation of Business License and Transient Occupancy Tax Software.

Public Safety
Police and Fire
 Maintained high-quality contract law enforcement and fire services through regional partnerships with OCSD and OCFA.
 Enhanced use of public safety data and analytics to proactively address emerging threats and community challenges.
 Maintained strong emergency response times and upheld permitting and service standards.  Collaborated with the Community Safety and Welfare Committee to identify, evaluate, and implement safety improvements.
 Established a new forward-operating helipad near Station 59 on La Pata to strengthen rapid response capabilities.
 Deployed S-70M (Firehawk) helicopters, significantly enhancing aerial firefighting capability through increased water capacity, speed, and night operational capability.  Completed construction of a secure parking facility for Sheriff’s Department vehicles at City Hall.
 Approval from the OCFA Capital Improvement Committee for the Wildfire Resource Center in the Rancho Mission Viejo area.
22 32
Marine Safety
 In FY 2025, Ocean lifeguards rescued 1,357 swimmers in distress, warned 21,762 visitors of dangerous situations, performed 1,324 medical aids and responded to 20,302 ordinance enforcement contracts and no drownings.
 In FY 2026, Ocean lifeguards rescued 1,415 swimmers in distress, warned 24,233 visitors of dangerous situations, performed 1,363 medical aids and responded to 17,551 ordinance enforcement contacts and no drownings.

Public Works
 Pedestrian Improvements were completed at Camino Capistrano and Mira Costa  Completed South El Camino Real Street Project
 Casa Romantica and Marquita Slope Rehabilitation Projects  Modified transportation programs
 Implemented water rate adjustments through a cost-of-service study Enterprise Funds
 Completed La Ventana Emergency liner project
 Completed Lead and Copper inventory with State Water Resources Control Board  Changed out approximately 200 residential meters to increase billing accuracy  Responded to and resolved 2,437 customer service requests  Completed Linda Lane emergency slope stabilization project  Completed water Rate Study
23 33
24 34
San Clemente at a Glance
2026 San Clemente City Council
Mayor Rick Loeffler, Mayor Pro Tem Steve Knoblock, Council Members Victor Cabral, Mark Enmeier, and Zhen Wu Mission Statement
The City of San Clemente, in partnership with the community we serve, will foster a tradition dedicated to:
 Maintaining a safe, healthy atmosphere in which to live, work and play;
 Guiding development to ensure responsible growth while preserving and enhancing our village character, unique
environment and natural amenities;
 Providing for the City’s long term stability through the promotion of economic vitality and diversity;
 Resulting in a balanced community committed to protection of what is valued today while meeting tomorrow’s needs.

History
The City of San Clemente, commonly known as the “Spanish Village by the Sea,” spans just over eighteen square miles of coastline and scenic foothills. The area, long admired by explorers and passing settlers for its location, remained virtually uninhabited until 1776, when the establishment of the San Juan Capistrano Mission led to nearby settlements by both Native Americans and Spaniards.

Property rights to land exchanged hands several times, but few ventured to build on the land until 1925. In 1925, Ole Hanson, a Seattle developer, purchased a large portion of what is now San Clemente. Hanson believed that the area’s pleasant climate, beautiful beaches and fertile soil would serve as a haven for Californians who were tired of “The Big City.” He named the City after San Clemente Island, which was originally named by the explorer Vizcaino, in 1602 after Saint Clemente, whose feast is celebrated on November 23, the day of Vizcaino’s arrival on the island.

Hanson succeeded in promoting the new area and selling property to interested buyers. He built facilities such as a community center, beach club, pier and Plaza Park, and donated them to the community. The area 25 35
San Clemente at a Glance
was incorporated officially as a City in 1928 and enjoyed slow but steady growth in the years thereafter.

In 1969, an event occurred which accelerated the growth and reputation of San Clemente. In that year, then President Richard Nixon purchased a Spanish mansion that Hamilton Cotton had built in the southern part of town in 1927. This “Western White House” became the site of numerous historical meetings and decisions. In earlier years, President Franklin Delano Roosevelt often stopped at Cotton’s Point whenever he traveled between Los Angeles and San Diego.

City Government
The City of San Clemente is a General Law city that operates under the Council/Manager form of city government.

At present, there are five members of the City Council, but the City is transitioning to be comprised of four Council members elected by district with a directly elected Mayor. This transition will be complete in November of 2026.

Until that time, the mayor is appointed by the members of the City Council to serve a one-year term and is the presiding officer of the Council. The City Council holds regular public meetings every first and third Tuesday of each month.

The City’s current resident population of 62,636 enjoys 244.93 acres of city spaces at 23 parks and beach access points, 20 acres of sand beaches, 25.9 miles of hiking trails, and a championship municipal golf course.

The City contracts for police services from the Orange
County Sheriff’s Department and for fire services from the Orange County Fire Authority. Ambulance services are
contracted to a private company.

Utilities (water, sewer, storm drain and urban runoff) are provided by the City. Trash collection is contracted to a private company.

Animal control and shelter services are provided by Coastal Animal Services Authority (CASA). CASA is a joint powers authority serving the cities of San Clemente and Dana Point.

Location
San Clemente is centrally located between Los Angeles and San Diego and is the southernmost point of Orange County. The San Onofre Nuclear Generating Station and Marine Corps Base Camp Pendleton are located immediately to its south. The cities of San Juan Capistrano and Dana Point are located to the north and northwest.

The City limits cover 18.45 square miles at an average elevation of 250 feet.
26 36
San Clemente ---+
Reader’s Guide to the Budget
Reader's Guide to the Budget
This guide is intended to help the reader understand what information is available in the budget and how it is organized. The biennial budget document consists of the following chapters including a Budget Glossary and is for a 2 year period, Fiscal Year 2026-27 and 2027-28, which is from July 1, 2026 to June 30, 2028. Below is an explanation of the major sections of this budget:

Introduction
The Introduction consists of the following items:
 Table of Contents - Provides page numbers to locate sections within the budget document.  City Organization Chart – Provides a City-wide organization chart.  Financial Accomplishments – The City has been presented the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for the Fiscal Year beginning July 1, 2024.

Standard & Poor’s rates the City of San Clemente’s credit at AAA.  Executive Summary – Provides a high level overview of the budget.  San Clemente at a Glance - Presents the Mission Statement, a brief history of the City, description of the form of government and location.
 Reader's Guide to the Budget - Provides a listing and description of chapters included in the budget.

Chapter 1 – Budget Overview
The Budget Overview consists of the following items:
 Financial Overview – Provides a comprehensive overview of the budget with a focus on All Funds and General Fund revenues and expenditures, as well as staffing levels, capital projects, maintenance projects, fund balances and the General Fund’s revenue and expenditure position.  Budget Process - Provides an overview of the budget development process and timeline.  Accounting System & Controls - Provides an overview of the City's accounting systems and the level at which budgetary control is maintained. The Cost Allocation Plan provides an overview of the process which allocates General Fund overhead costs to other funds.

Chapter 2 - All Funds Summary
A comprehensive overview of the budget, with a focus on all funds (consolidated). Included are tables and graphs for both revenues and expenditures and an overview of revenue assumptions utilized in the development of the budget. A listing of all city-wide programs is included in this section.

Chapter 3 - General Fund Revenues and Expenditures
An analysis of General Fund revenues, expenditures and impacts on fund balance is provided in this chapter.

General Fund revenues are presented by category, revenue overview, revenue summary and revenue by line item.

This section also provides information on General Fund expenditures, including expenditures by category, department, summary of expenditures, expenditure overview, and expenditures by line item.

This section includes transfers in and out from the General Fund unassigned fund balance listed separately. These transfers impact sources and uses available and are included in the All Funds Summary Revenues and Expenditures. 27 37
Reader’s Guide to the Budget
Chapters 4 through 9 – Department/Division Budgets
These sections include the budgets for the City's basic organizational units which provide essential services to the citizens of San Clemente. Each section presents information summarized at the Department level and General Fund Division level. The Department/Division/Program Budgets include:
 General Government  Finance and Administrative Services  Public Safety  Community Development
 Public Works  Beaches, Parks and Recreation
Departmental summary information is presented in the following format:
 Department Overview – An overview of the structure and description of the Department.  Organization Chart - An organization chart by function is provided for each department.  Expenditures by General Fund Division - A table comparing Actual FY 2024-25 expenditures, Amended Budget for FY 2025-26 and adjusted amounts projecting for FY 2025-26 expenditures, and budgeted expenditures for FY 2026-27 and FY 2027-28 for General Fund divisions within the Department.  Department Expenditures by Category - A table comparing Actual FY 2024-25 expenditures, Amended Budget for FY 2025-26 and adjusted amounts projecting for FY 2025-26 expenditures, and budgeted expenditures for FY 2026-27 and FY 2027-28 for each expenditure category.  Department Personnel Summary - The total number of staff assigned to each Department by Full-Time Equivalent (FTE). FTE refers to a budgeted, benefited position that normally works at least 2,080 hours per year. A 0.5 FTE would be scheduled to work 1,040 hours per year or on average 20 hours a week.  Key Initiatives – A listing of key initiatives for the Department/Program for the budgeted years.

General Fund Division information is presented in the following format:
 Purpose Statement – This provides a general description of the primary purpose of the division.  Service Description - A listing of the key services or functions provided by the division.  General Fund Program Summary - A table comparing Actual FY 2024-25 expenditures, Amended Budget for FY 2025-26 and Adjusted amounts projecting for FY 2025-26 expenditures, and budgeted expenditures for FY 2026-27 and FY 2027-28 for General Fund programs within the Division.  Category Expenditure Summary - A table comparing Actual FY 2024-25 expenditures, Amended Budget for FY 2025-26 and Adjusted amounts projecting for FY 2025-26 expenditures, and budgeted expenditures for FY 2026-27 and FY 2027-28 for each expenditure category.  Division Personnel Summary – The total number of staff assigned to each Division by FTE.  Significant Changes – This section provides an overview of the significant changes included in the budget. 28 38
Reader’s Guide to the Budget
Chapter 10 - Special Revenue Funds
This section includes budgets for the City's Special Revenue Funds. Fund descriptions, along with revenue and expenditure information, and beginning and ending fund balances are presented. Special Revenue Funds include:

Street Improvement, Gas Tax, Miscellaneous Grants, Disaster Relief, Air Quality Improvement, Local Cable Infrastructure, Police Grants, Local Transit Program, Senior Mobility, and Building Homes & Jobs Act Funds.

Chapter 11 - Capital Project Funds
This section provides an overview of the City's Capital Project Funds including a listing of projects where appropriate.

Capital Project Funds include: Parks Acquisition and Development, Local Drainage Facilities, Regional Circulation Financing & Phasing Program, Public Facilities Construction Fee, Developers Improvement, Low/Moderate Income Housing, In-Lieu Housing, and Capital Improvement Funds.

Chapter 12 - Enterprise Funds
The budgets for the Water, Sewer, Storm Drain, Clean Ocean, Solid Waste, and Golf Funds are presented.

Operating, Depreciation and Capital Reserve Funds are included in this section. For Operating Divisions within these funds, information is presented in the following format:
 Purpose Statement – This provides a general description of the primary purpose of the division.  Service Description - A listing of the key services or functions provided by the division.  Beginning Net Working Capital Balance - A chart comparing FY 2024-25 beginning balance, FY 2025-26 amended budgeted and adjusted amouns, and budgeted beginning balance for FY 2026-27 and FY 2027-28.  Revenue Summary - A table presenting FY 2024-25 actual revenues, FY 2025-26 amended budgeted and adjusted revenues, and budgeted revenues for FY 2026-27 and FY 2027-28.  Expenditures by Program - A table presenting FY 2024-25 actual expenditures, FY 2025-26 amended budget and adjusted expenditures and budgeted expenditures for FY 2026-27 and FY 2027-28 by program within the Division.
 Ending Net Working Capital Balance - A table presenting FY 2024-25 ending balance, FY 2025-26 amended budgeted and adjusted ending balance, and budgeted ending balance for FY 2026-27 and FY 2027-28.

 Expenditures by Category - A table presenting FY 2024-25 actual expenditures, FY 2025-26 amended budgeted and adjusted expenditures, and budgeted expenditures for FY 2026-27 and FY 2027-28.  Division Personnel Summary – The number of staff assigned to each Division is listed in this table by FTE.  Significant Changes – This section provides an overview of the significant changes included in the budget.

Chapter 13 - Internal Service Funds
This section presents an overview of all Internal Service Funds, including fund descriptions, revenue and expenditure detail, and beginning and ending fund balances. Internal Service Funds include Central Services, Information Technology, Contract Fleet Services, Fleet Replacement Reserve, Medical Insurance, Workers’ Compensation and General Liability Self-Insurance Funds.
29 39
Reader’s Guide to the Budget
Chapter 14 - Capital Improvement Program
This chapter presents the City’s Capital Improvement Program (CIP) budget for Fiscal Years 2026-27 and 2027-28.

The first section provides an introduction to the City’s Capital Improvement Plan for projects. The overview includes City’s Master Plans, the CIP process, Capital Improvement Plan information, significant capital projects, and carryforward projects. A map of the City, indicating significant project locations, is included for the reader’s reference. Graphs provide an overview of the total CIP Expenditures by Category and Fund.

Following this introductory section, the projects by major categories, Facilities, Parks and Beaches, Streets and Medians, Utility (Water and Sewer), and Water Quality (Drainage) are presented in detail. Each section provides an overview and individual project sheets for the FY 2026-27 and FY 2027-28 CIP budget.

Chapter 15 - Fiscal Policy and Debt Summary
 The City's Fiscal Policy section includes a narrative as to recommended changes based on a review of the existing policies and the City’s finances.
 The City's Fiscal Policy describes the City's financial goals along with policies addressing the operating budget, revenues and expenditures, utility rates and fees, capital improvement program, short- and longterm debt, reserves, investments, and accounting, auditing, pension, and financial reporting.  Appropriations Limit, which is required by the State constitution, places limits on the amount of proceeds of taxes that the City can allocate each year.
 Debt Summary, an overview of the City’s general government, Successor Agency, Golf Operating Fund and assessment district debt.

Chapter 16 – Performance Measures
This section presents quantitative data which measures each division’s efficiency and effectiveness in the achievement of performance objectives in meeting the City’s mission statement.

Chapter 17 - Staffing
This section includes a staffing schedule, by position and category, for the last five years. Position changes included in this budget cycle are identified, and the workforce is graphically illustrated by department and by category. A ten-year historical comparison of the changes in full-time and part-time employees is also presented. Additionally, information on pensions and pension funding levels is presented.

Chapter 18 – Glossary
This section provides a complete glossary of terms and acronyms used throughout the budget document.

Demographic and Statistical Information
Printed inside the back cover of the final Adopted Budget, this provides a list of demographic and statistical information for the City of San Clemente.
30 40
Financial Overview
Fiscal Year 2026-27 and FY 2027-28
All Funds Overview
All Funds Spending Plan
The All Funds budget reflects the operating and capital expenses in the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds. The City has 29 budgeted funds for FY 2026-27 and 2027-28. The total All Funds budget for the FY 2026-27 and FY 2027-28, amounts to $194.6 million and $188.4 million of budgeted expenditures, respectively. The following table illustrates the All Funds expenditure budget, by fund type:

The following graphic reflects the use of revenues and fund balance in FY 2026-27 and in FY 2027-28 to fund the spending plan.

Commonly, cities utilize accumulated fund balance from revenues, capital reserves, or amounts from past years savings to fund capital activities and other one-time costs. The All Funds Beginning Fund Balance is $94.8 million and Ending Fund Balance is $82.6 million reducing by $12.2 primarily to fund capital related activities. The All Funds Section of the Budget shows the individual fund impacts, however fund balance is decreasing in Gas Tax, Street Improvement, Water Depreciation, and Golf Capital funds.

The following table breaks the All Funds spending plan into three distinct categories – Operating, Capital and Debt Service.

Operating includes personnel, supplies, contractual services, other charges, interdepartmental, and transfers. Capital outlay is primarily for one-time projects and capital activities. Debt service includes principal and interest on outstanding debt and the UAL pension payments for past police and fire staff liabilities.

All Fund Expenditures FY 2026-27 FY 2027-28
Operating Expenditures $ 168.0 M $ 164.7 M
Capital outlay/studies 24.1 M 21.2 M
Debt Service 2.5 M 2.5 M
Total All Funds Expenditures/Uses $ 194.6 M $ 188.4 M
Information on the All Fund Revenues and Expenditures, including the Capital Improvement Plan, are discussed in the following pages in the Financial Overview – All Funds.
$186.9
$7.7
FY 2026-27 Budgeted
Expenditures
Revenue Funded Fund Balance Funded
$183.9
$4.5
FY 2027-28 Budgeted
Expenditures
Revenue Funded Fund Balance Funded
Fund Type
Budget
FY 2026-27
Budget
FY 2027-28
General Fund $94,359,900 $92,335,110
Special Revenue Funds 14,196,660 9,362,990
Capital Project Funds 5,883,470 1,785,060
Enterprise Funds 65,023,580 69,532,150
Internal Service Funds 15,173,890 15,427,190
Total Spending Plan $194,637,500 $188,442,500
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Financial Overview
Financial Overview – All Funds
Revenues (sources) total $186.9 million in FY 2026-27 and $183.4 million in FY 2027-28.

Taxes and service charges are the largest revenue sources and represent approximately 39% and 30% of budgeted revenues.

These two revenues represent 69% of All Fund budgeted revenues and are discussed in more detail in the following paragraphs.  Taxes increase to $70.2 million in FY 2026-27 and $72.6 million in FY 2027-28 driven by growth in property taxes. Property taxes are budgeted at $50.1 million in FY 2026-27 and $52.1 million in FY 2027-28 as property valuations continue to increase and, despite interest rate fluctuations, housing activity remains stable in San Clemente. Sales taxes, franchise fees, transient occupancy taxes remain relatively flat over the two-year budget, based on recent and anticipated activity. Business license taxes are budgeted to increase due to local development activity and a new software implementation allowing staff to ensure compliance in multiple areas and streamlined transaction processing.  Service charges increase to $51.9 million in FY 2026-27 and $55.2 million in FY 2027-28. These increases are primarily due to anticipated water and sewer service charge rate impacts. Initially, the water service charges budget decreased from FY 2025- 26 due to new rate implementation delays, however both utility charges are budgeted to increase in both years based on the approved rate structure. Recreation and golf fee service charges are budgeted increases based on the recent fee structure adopted in the last fiscal year.

Intergovernmental revenues decrease due to grants for the off-shore sand study and a capital project grant in the storm drain fund being budgeted in FY 2025-26. Other Revenues decrease as depreciation funding is lowered, while miscellaneous income fluctuates based on SDG&E reimbursement for a capital project. Permits & Fees and Fines are essentially flat from year to year.

Expenditures are budgeted at $194.6 million in FY 2026-27 and $188.4 million in FY 2027-28.

Contractual services (36%), personnel (20%), and capital outlay (12%) are the largest expenditure categories of budgeted amounts. These three expenditures represent approximately 68% of All Fund budgeted expenditures and information on these is in the following paragraphs.

Taxes Permit & Fees Intergov. Service
Charges Fines Interest &Rents Misc. OtherRevenues
FY 2026-27 $70.2 $1.7 $13.5 $51.9 $0.9 $7.4 $4.2 $37.1
FY 2027-28 $72.6 $1.7 $15.3 $55.2 $0.9 $7.7 $1.4 $29.1
$-
$20.0
$40.0
$60.0
$80.0
All Fund Revenues/Sources
FY 2026-27 FY 2027-28 in millions (rounded)
Personnel Supplies Contractual
Services Other Charges Capital Outlay Interdepartmental Interfund Debt Service FY 2026-27 $38.1 $17.7 $68.6 $19.5 $24.1 $11.4 $12.6 $2.5 FY 2027-28 $40.0 $19.1 $70.1 $19.4 $21.2 $11.6 $4.4 $2.5 $-
$20.0
$40.0
$60.0
$80.0
All Fund Expenditures/Uses
FY 2026-27 FY 2027-28 in millions (rounded)
32 42
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Financial Overview
 Personnel costs, or salaries and benefits, are budgeted at $38.1 million in FY 2026-27 and increase to $40.0 million in FY 2027-

28. Cost increases represent MOU cost of living changes and anticipated increases from merit increases and other position changes. Costs are based on full-staffing, however some positions are budgeted through contractual costs to address existing position vacancies. An example is the Coastal Administrator position activities executed through contract services. Some changes are due to staffing modifications, based on ongoing refinement of the City workforce structure in alignment with operational priorities, service demands, and long-term organizational sustainability. Benefit cost increases include impacts from higher Social Security and State Disability salary thresholds. Additionally, pension costs increase based on recent actuarial valuations and the phase-in of actuarial impacts. Further information is located in the Staffing section of this Budget.  Contractual Services are budgeted at $68.6 million and $70.1 million. FY 2026-27 public safety direct contract costs for fire (OCFA), police (OCSD) and ambulance are $37.3 million or 54% of total Contract Services and $38.5 million in FY 2027-28 or 55% of total Contract Services costs. The next largest contract amounts are for maintenance, which includes maintenance of buildings, restrooms, parks, pools, landscaping, beaches, trees, computers, custodial services, street striping, graffiti, utility assets, and street sweeping. Other elements of Contract Services are utilities in amounts totaling approximately $6.4 million annually, and for professional services and other contract services to support the various activities done annually within the City. Some of these contract costs are for maintenance projects, contractual staff assistance, banking costs, and other services.  Capital outlay is budgeted at $24.1 million and $21.2 million. Additional detailed information on these projects can be found in the CIP section of the budget.

Supply costs increase due to higher purchased water costs. Other charges remain flat in total, however insurance charges increases are offset by lower budgeted deprecation costs. Transfers between funds fluctuate based primarily on transfers to capital reserves. Debt service and interdepartmental charges are flat based on current expectations for the CalPERS UAL payment and internal charges.

Capital Improvement Program (CIP)
The City prioritizes investment in capital and maintenance and continues to fund projects based on available funding identified through the budget process. Capital improvements include the construction, improvement, and replacement of City infrastructure - such as residential and arterial streets, bridges, traffic signals, water, sewer and other capital assets. Funding for these projects is typically provided from restricted revenue amounts, reserves, and through annual one-time sources.

The City’s Capital Improvement budget in FY 2026-27 and 2027-28 amounts to $21.5 million and $20.1 million, (excluding the CDBG project, which will be presented when the grant award is obligated). These projects are presented by category in the following charts:

In the CIP Budget section, projects are listed both by Fund and by Category, with $36.3 million being Capital, $5 million Maintenance and $0.3 million in Studies in the two-year budget. Significant projects include Sand Replenishment, Del Mar Phase I Undergrounding, Calafia Complete Streets, Golf Course Bunker and Irrigation System Replacement, Water Reclamation Plant (WRP) Boiler Replacement, Poche Beach Water Reclamation, Pico Booster Pump Station pump replacement and Reata Pump station rehabilitation.

Facilities $1,720,000 8%
Parks and Beaches $2,795,000 13%
Streets and Medians $10,800,000 50%
Utility $4,050,000 19%
Water Quality $2,109,000 10%
FY 2026-27
Facilities $300,000 1%
Parks and Beaches $4,520,000 23%
Streets and Medians $5,325,000 27%
Utility $4,450,000 22% Water Quality $5,500,000 27%
FY 2027-28
33 43
Financial Overview
General Fund Overview
General Fund Revenues and Expenditures
In the General Fund, which is the City’s main operating fund, anticipated revenues amount to $88.3 million in FY 2026-27 and $91.1 million in FY 2027-28. Total expenditures are $87.8 million in FY 2027 and $90.6 million in FY 2028. Total revenues exceed the expenditure by $0.5 million in each year. Revenues and expenditures exclude transfers, providing a more precise picture of the City’s ongoing ability to fund annual operations. The following table presents the General Fund revenues and expenditures.

General Fund Summary FY 2026-27 FY 2027-28
General Fund Revenues $ 88.3 M $ 91.1 M
General Fund Expenditures 87.8 M 90.6 M
Revenues over Expenditures (net) $ 0.5 M $ 0.5 M
In total, the General Fund’s fund balance is projected to be $26.2 million at June 30, 2026 and is budgeted to accumulate another $1 million as revenues exceed expenditures annually. After transfers to other funds, the fund balance is budgeted to end at $20.1 million. A summary of the FY 2025-26 to FY 2027-28 fund balance activity is presented below:

Summary of General Fund Balance Amounts
Fund Balance total at June 30, 2026 $ 26,236,864
Revenues over expenditures - FY 2026-27 471,620
Revenues over expenditures - FY 2027-28 496,330
Fund Balance before transfers 27,204,814
Transfers, net - FY 2026-27 (5,915,000)
Transfers, net - FY 2027-28 (1,169,000)
Fund Balance at June 30, 2028* $ 20,120,814
* Further information on assigned and unassigned fund balance is presented further in this General Fund Overview narrative.

Fund Balance Transfers
The General Fund’s Fund balance transfers are budgeted for $5.9 million in FY 2026-27 and $1.2 million in FY 2027-28 to fund one-time capital activities, grant matches, and other support. This one-time use is a Fiscal Policy allowable use of unrestricted fund balance. A summary of these transfers and the purpose for these transfers are presented in the following table.

Funds transferred to
FY 2027
Amount
FY 2028
Amount

Purpose
Senior Mobility Fund ($ 23,000) ($ 27,000) Senior mobility Capital Improvement Fund (5,000,000) - Capital funding
Storm Drain Fund (950,000) (1,150,000) Storm ater compliance Transit Fund (350,000) (350,000) Trolley/SCRides Support PHLA (SB2) Fund - (250,000) Outreach services
Solid Waste (200,000) - Support street sweeping
Transfers Out ($ 6,523,000) ($ 1,777,000)
Transfers In 608,000 608,000 Gas Tax and Misc Grant Reimbursements Net Fund Balance transfers ($ 5,915,000) ($ 1,169,000)

In the Fiscal Policy section of the Budget, a policy update is presented to address the use of fund balance to fund capital and other activities through an annual transfer identified as part of the year-end closing process to be approved by City Council. This policy will provide for an ongoing source of funding for the Capital Improvement fund where capital projects occur.

General Fund Revenues
General Fund revenues, excluding transfers in, are budgeted at $88.3 million in FY 2026-27 and $91.1 in FY 2027-28. General Fund revenues are influenced by the economy, development, and other factors. Significant revenues for the General Fund are derived from Property Taxes and Sales Taxes, which represent approximately 71% of General Fund revenues. General Fund revenue increases are expected in property taxes, permits & fees, service charges, interest & rent and other revenues. Sales taxes, other 34 44
Financial Overview
taxes, and fines are budgeted to remain essentially flat during the budget period. Intergovernmental is the only decrease anticipated. The following General Fund Revenue chart shows the FY 2026-27 and FY 2027-28 revenue budgets.

Property Taxes account for 57% of total General Fund revenues in FY 2026-27 and in FY 2027-28. These revenues are forecasted to grow around 4-5% with annual increases of between 4-7% since 2015 based on assessed valuation increases and property transaction activity. Recent
development and property sales,
limited housing supply, and
reassessments due to sales, along
with the CPI factor being the 2%
maximum contribute to the long
term sustained growth in property
taxes. The chart on the right shows
the City’s ten-year Property Tax
revenue history, including Transfer
Tax.

Sales Taxes are 14%-15% of total General Fund revenues and budgeted at $12.9 million in FY 2026-27 and $13.2 million in FY 2027-28. This is relatively flat with previous years based on forecast results and consumer uncertainty. Fluctuations have occurred in the past, but generally the revenues have remained relatively constant since the pandemic period. Overall, the City of San Clemente has a diverse sales tax base
and the City’s top three sales tax
industries are consumer goods,
restaurants, and fuel. Development in
the City in the past has contributed to
the sales tax revenues and has
normalized sales tax revenues in
recent years since the pandemic
period in 2020.

Transient Occupancy Taxes are budgeted to decrease slightly based on recent transient occupancy tax receipts; however, these are budgeted to reach previous levels in FY 2027-28, and could improve as additional hotels or rooms are added to the City or if tourism activity improves related to the 2028 Olympics. Franchise Taxes remain around $2.3 million, and Business License revenues increase slightly from $1.2 million to $1.3 million.

Service Charge revenues are 9% of the General Fund revenue budget with $8.1 million in FY 2026-27 and $8.2 million in FY 2027-

28. The major revenue sources in this category are recreation program fees, ambulance service charges, parking meter revenues, and marine safety fees. Recently, recreation fees were reviewed and adjusted which should improve recreation related revenues.

Property Tax Sales Tax Other Taxes Permit &
Fees Intergov. ServiceCharges Fines Interest &Rents
Other
Revenue
FY 2026-27 $50.1 $12.9 $6.9 $1.5 $0.7 $8.1 $0.6 $4.1 $3.2 FY 2027-28 $52.1 $13.2 $7.1 $1.5 $0.7 $8.2 $0.6 $4.4 $3.2 $-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
General Fund Revenues
FY 2026-27 FY 2027-28 in millions (rounded)
$34.1 $35.6 $38.1 $39.6 $42.4 $44.4 $46.9 $48.2 $50.1 $52.1 $20.0
$30.0
$40.0
$50.0
$60.0
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 Property Taxes
In Millions
$10.6 $10.1
$12.1
$13.4 $12.6 $12.9 $12.8 $13.2 $12.9 $13.2
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 Sales Taxes
In Millions
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Financial Overview
Interest and Rents increase as a result of the Beach Club being operated in-house by Beaches, Parks and Recreation increasing the budget from $3.9 million in FY 2025-26 to $4.4 million in FY 2027-28.

Other categories of revenue are essentially flat, or constitute a small percentage of total General Fund Revenues. Fines, and Permits & Fees are generally smaller revenue sources and are budgeted to be flat between FY 2026-27 and FY 2027-28.

Intergovernmental revenues decrease from FY 2025-26 due to the receipt of grant funds for the off-shore sand study grant in the prior period. Other Revenues are budgeted at $3.2 million increasing slightly from $3.1 million with the majority of these being charges to other funds for services provided by General Fund to other funds.

General Fund Expenditures by Category
General Fund expenditures, excluding transfers out, are budgeted at $87.8 million in FY 2026-27 and $90.6 in FY 2027-28.

Expenditures are listed by separate categories in the chart below. The major categories for the General Fund are Contractual services, which is 58% of the total General Fund budget and Personnel costs which is 29% of the General Fund budget. The City delivers services to citizens through contracts and staff, with 87% of costs related to these categories.

Personnel costs for FY 2026-27 are $25.3 million and FY 2027-28 are $26.6 million include full-time and part-time salaries with associated benefit costs. In total, costs increase by 5-6% due to increases from the MOU being included in the budget to address COLA increases and merit increases. The current MOU agreement is in place through June 30, 2028 with the San Clemente City Employees Association (SCCEA). Additionally, benefit costs are increasing as social security and state disability salary thresholds increased resulting in higher benefit costs. Retirement costs increase based on the most recent actuarial valuations contributing to improved pension funding levels. Position changes were made in a variety of areas to address organization priorities. The Staffing section of the Budget provides more detail on full-time positions, position changes, and other general information related to staffing.

Contractual Services are $50.8 million in FY 2026-27 and $52.3 million in FY 2027-28, with the largest amounts related to the police contract ($22.7 and $23.4 million), and fire contract services ($12.3 and $12.8 million). Other large budgeted amounts are maintenance contracts for $5.6 million annually, utilities costs of $2.7 million annually, and ambulance costs of $2.3 million annually. Information on contracts for OCSD and OCFA follow:

The Orange County Sheriff’s Department (OCSD) police services contract amount increases to $22.7 million. Historically, costs increase 4%-5% and include the costs for four deputies added in FY 2024. The General Fund budgeted contract amount is $22.7 million in FY 2026-27 and $23.4 million in FY 2027-28 for the OCSD contract, assuming maintaining staffing and overtime at current levels. This amount does not include a pending negotiation process with the County unions.

The total Orange County Fire Authority (OCFA) contract amounts to $12.3 million in FY 2026-27 and $12.8 million in FY 2027-28 for the base contract and equipment costs. The OCFA fire services base contract is budgeted in the General Fund, with a budget decrease of 1.4% in FY 2026-27 initially and an increase of 3.5% in FY 2027-28. The fire contract completed the 4th firefighter cost phase-in with the FY 2024-25 budget.

Personnel Supplies Contractual
Services Other Charges Capital Outlay Interdepartmental Debt Service FY 2026-27 $25.3 $1.5 $50.8 $1.8 $1.4 $5.5 $1.5
FY 2027-28 $26.6 $1.6 $52.3 $1.7 $1.3 $5.6 $1.6
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
General Fund Expenditures by Category
FY 2026-27 FY 2027-28 in millions (rounded)
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Financial Overview
The FY 2026-27 and FY 2027-28 budgets reflect mostly flat costs for supplies, and other charges. Interdepartmental charges decrease from the removal of capital reserve charges and debt service lowers as a result of the pension prefunding trust being funded in the prior budget period. Capital outlay fluctuates annually, however starting in FY 2026-27, only routine maintenance projects are in the General Fund, with most CIP activity in the Capital Improvements Fund. Detailed information about capital projects is located in the CIP section of the Budget.

General Fund Expenditures by Department
General Fund expenditures, excluding transfers out, are budgeted at $87.8 million in FY 2026-27 and $90.6 in FY 2027-28.

Expenditures are listed by separate department in the chart below, which excludes transfers out. Major General Fund departments are Public Safety and Public Works. Public safety is 49% of the FY 2026-27 budget and the FY 2027-28 budget, however this excludes Code Compliance and Park Ranger programs. The Public Works department is 21% of the FY 2026-27 and FY 2027-28 budgets, respectively.

General Government is where City Council, City Manager, and City Clerk costs are budgeted and this area includes other nonspecific costs such as property and liability insurance, legal costs and other City-wide costs not specific to a particular Department.

Finance and Administrative Services is the main administrative department where Finance, Treasury, Purchasing, Human Resources, and other functions are budgeted. Public Safety includes police, fire, ambulance, and marine safety costs. Community Development includes planning, code compliance, and building divisions. Public Works includes Engineering, Development, and Maintenance, maintaining all City facilities, parks and maintenance projects within the city. Beaches, Parks and Recreation includes all recreation, which includes the operations of parks, pools, recreation facilities, special events and classes.

Additional information is located in the General Fund section of this Budget, with additional information provided by line item, program, and division.

Fund Balance – General Fund
The FY 2027-28 General Fund’s ending fund balance is
budgeted to be $20.1 million, including both Assigned
and Unassigned Fund Balance. The General Fund’s
assigned fund balance includes amounts for the Pension
Trust ($1.2 million), Accrued Leave ($0.9 million), and Emergency Reserve ($16.3 million or 18% of
expenditures). The General Fund’s Unassigned Fund
Balance totals $1.7 million at June 30, 2028, which is
approximately 2% of General Fund expenditures.

Gen Government Fin & Adm Svcs Public Safety Comm Dev Public Works Beach, Park & Rec
FY 2026-27 $6.5 $4.5 $42.6 $8.3 $18.7 $7.2
FY 2027-28 $6.7 $4.7 $44.0 $8.6 $19.2 $7.3
$-
$10.0
$20.0
$30.0
$40.0
$50.0
General Fund Expenditures by Department
FY 2026-27 FY 2027-28 in millions (rounded)
Emergency
Reserve $16.3
81%
Pension -
Section 115
Trust $1.2 6%
Accrued Leave
$0.9 4%
Unassigned Fund
Balance $1.7 9%
Fund Balance
June 30, 2028
$ in millions
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Financial Overview
Other Fund Activity
The City’s multiple funds consist of Special Revenue and Capital Project governmental funds, and Enterprise and Internal Service proprietary funds. These funds are all presented in separate Budget sections. A summary of significant revenues, impacts or costs, and other notable activity to funds other than the General Fund are summarized in the following:

Governmental Funds
• Street Improvement Fund: Funding is included for street projects annually from a County Sales tax measure, providing funding for capital projects of $1.7 million in FY 2026-27 and $1.7 million in FY 2027-28. • Gas Tax Fund: Funding includes capital projects of $7.2 million in FY 2026-27 and $3.4 million in FY 2027-28. Projects include the North Beach Train Station Improvements and costs for the arterial and local street projects of $750,000 each annually. • Community Development Block Grant: Funding is included for rehabilitation loans/grants, public services, administration costs and infrastructure improvements. Total spending is $556,130 in the budget for FY 2026-27 and $396,130 for FY 2027-28. • Building Homes & Jobs Act Fund: The Permanent Local Housing Allocation state grants final allocation in this 5-year grant cycle will be received in FY 2026-27. Program funding for FY 2027-28 is allocated from the General fund until the new grant cycle is obligated by the State.
• Disaster Relief Fund: American Rescue Plan disaster relief grants are fully received and spent and this fund will be closed at the completion of FY 2025-26.
• Local Cable Infrastructure Fund: Funding for the purchase of an Outdoor Digital display is budgeted in FY 2026-27. • Police Grants Fund: The annual amount received from the State is now budgeted in the General Fund and this fund will be closed at the completion of FY 2025-26.
• Transit Fund: Trolley operations and the SC Rides program are included in this fund and budgeted for FY 2026-27 and FY 2027-

28. Reimbursements of program costs from OCTA have been slow and often received a year or later from the incurred cost.

The revenues budgeted reflect delayed receipt of grant amounts from OCTA and funding current matching costs transferred from the General Fund to provide program funding. Trolley costs for the yellow line are budgeted in FY 2026-27. • Capital Improvement Fund: This fund was changed from the Reserve fund and is used to fund General Fund related projects.

In FY 2026-27 and 2027-28 projects include Sand Replenishment ($1 million), Pier Improvements and Repairs ($700,000), playground equipment ($625,000) and Del Mar undergrounding ($2.8 million) through a reimbursement from SDG&E. Other projects are identified in the CIP section of the Budget. • Parks Acquisition and Development Fund: Capital projects include the development of the Meadows field at the Vista Hermosa Sports Park requiring an additional $180,000 in FY 2026-27. • Local Drainage Fund: This budget includes a transfer to the Storm Drain fund to provide funding for a capital project in the Segunda Deschecha area.

Proprietary Funds
• Water Fund: Operating Equity is budgeted to end FY 2025-26 at $1.1 million, so a one-time transfer budget from depreciation reserves in FY 2026-27 is needed to provide operating working capital. Water operating position will improve due to a new 5- year rate model approved earlier this year. Significant capital projects are still funded through depreciation reserves for both fiscal years totaling $5 million. Projects include a pump replacement project and pump station rehabilitation project. • Sewer Fund: A sewer cost of service study was approved in FY 2023-24 and has improved the Sewer operating position.

Deprecation reserves are used to fund capital amounts including capital projects include a boiler replacement ($1.2 million), lift station generator replacement ($0.5 million). Other projects are identified in the CIP section of the budget. 38 48
Financial Overview
• Storm Drain Fund: This fund is budgeting for some costs previously funded through the Clean Ocean fund, increasing costs beyond the $1.2 million budgeted revenue source. The Storm Drain Fund is currently being supplemented by the General Fund until a new funding source can be obtained related to these costs since the Clean Ocean fee expired in 2021. • Solid Waste Fund: This fund now includes street cleaning costs previously funded by the Clean Ocean fee. The fund now receives a street sweeping fee based on the latest CR&R agreement. The street sweeping fee, with parking citation revenue, funds a lesser street cleaning service level from the Clean Ocean fee levels. A revised street sweeping program is being reviewed for presentation in the future.
• Golf Fund: The Golf fund modified fees in anticipation of funding some long-term projects identified in the Golf Master Plan.

The golf capital improvement budget includes amounts for bunker renovations and irrigation system replacement. More information on these projects is presented in the CIP section of the budget. • General Liability Self-Insurance Fund: This fund’s costs are increasing based on recent activity. The City has experienced multiple subsidence issues which are impacting CJPIA contributions in the future. Currently the fund balance is decreasing to assist in smoothing these impacts, as normalization of these ongoing costs is achieved.

Water and Sewer Rates
Water rates changes were recently adopted in February 2026 after the completion of a water cost of service study. The rate study considered operating costs, purchased water rates, and capital costs for maintaining aging infrastructure. The water rate increases have been included in the budget and the last increase is anticipated in January of 2030. The rate study includes a pass-through fee to recover increases based on the wholesale cost of water.

Sewer rates were approved by the City Council at a meeting in July 2023, approving a 5-year rate cost of service rate study, with the last rate changes occurring in 2027. A Sewer cost of service study is included in the budget to solicit a proposal for an updated cost of service study to be completed in FY 2027. Sewer charges are not fully recovering the operating costs for the City’s sewer system and the replacement costs for the system’s infrastructure as capital costs continue to rise and the infrastructure ages.

Also, components of the Treatment Plant are reaching the completion of their useful life.

Labor Relations
The City’s MOU agreement ends with the San Clemente City Employees Association (SCCEA) on June 30, 2028, which matches the current budget cycle. The current MOU includes an increase of 3% COLA in July 2026 and 2.5% in July 2027, with additional steps to better address staff continuity. Previously, a Classification and Compensation Study was initiated and City Council approved the implementation of the study in 2024. Since the implementation of the Classification and Compensation study, the City’s focus on recruitment has improved staffing levels by filling vacancies. The city currently has a 13.37% vacancy rate due to normal turnover. The City continues to monitor and address these vacancies while assessing staffing needs, changes in organization priorities and opportunities to streamline and enhance operations and services. Management has not initiated negotiations with the Association’s representatives for a successor agreement, but will start during this budget cycle.

The FY 2026-27 and FY 2027-28 Budget funds all staff positions listed on the staffing chart in the Staffing section of the Budget.

The Proposed Budget incorporates strategic adjustments to existing positions and aligns staffing needs based on departmental needs, changes in service and operational demands, and streamlining efforts. These include changes such as reclassifications or regrades and the modification of certain staffing levels to better meet organizational needs.

A complete list of staffing changes are included in the Staffing section with the total FTE count decreasing to 199.25 positions.

Fiscal Policy
Fiscal Policy is reviewed in conjunction with the Budget preparation and Long Term Financial Plan process. A policy modification is proposed to address the allocation of the General Fund fund balance through a year-end process identifying intended uses, such as capital projects, allocations to the Section 115 Trust, or other funding for specific City priorities. The analysis, recommendation, and fiscal policy wording is included in the Fiscal Policy section of this Budget. 39 49
Financial Overview
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, 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 $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 supporting long term fiscal health. However, even with a balanced budget today, projected revenues are not keeping pace with rising costs. Future projects, as well as the maintenance and replacement of aging infrastructure, will need to be carefully planned and scheduled across upcoming budget cycles.

Long Term Financial Plan (LTFP)
The Long Term Financial Plan (LTFP) is San Clemente’s roadmap for sustaining long-term fiscal strength. Prepared biennially in conjunction with the Budget, 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.

Five-Year Financial Forecast Summary
San Clemente’s five year financial outlook remains balanced for now, but the City is beginning to feel growing pressure as revenues struggle to keep pace with rising costs. Police services accounts for 29% of the General Fund and Fire services another 17%, this limits the City’s ability to fund other priorities and has already reduced the capacity to fully support the Capital Improvement Program, which is essential for maintaining an aging infrastructure. Although the current budget maintains existing service levels, it does not provide the long term funding needed to keep up with infrastructure demands or prepare for unexpected emergencies.

The expiration of the Clean Ocean Fee further strained resources, since that dedicated revenue stream disappeared, forcing the General Fund, Storm Drain Fund, and Solid Waste Fund to absorb those costs. With only a small operating surplus that could quickly be consumed by emergencies, the City must evaluate new revenue options, update outdated fees, and reassess funding priorities to remain financially resilient.

General Fund revenues come from taxes, permits and fees, intergovernmental revenues, service charges, fines, interest and rents, miscellaneous income, and interfund revenue. These revenues are projected to grow by about 1.97%, combined, per year, driven mainly by increases in taxes and service charges. Property tax is the City’s largest and most stable revenue source, providing 52% of the General Fund, though its growth is limited by Proposition 13. Transient Occupancy Tax from hotels and short-term rentals contribute 3.5%, while sales tax contributes 14.4% of the General Fund, which fluctuates with economic conditions and consumer spending. Other taxes (franchise and business license fees) remain steady. Permits and fees revenues are about 2% and vary with construction activity. Intergovernmental revenues account for 0.5% and come from state and federal programs. Service charges represent 9% of revenue and are expected to grow, especially with recreation fee adjustments and the City’s future management of the Beach Club. Fines contribute 1%, interest and rents 5%, miscellaneous income 0.07%, and interfund revenue 3%. 40 50
Financial Overview
On the expenditure side, the General Fund supports essential services such as public safety, parks, beaches, and community programs. Costs are expected to increase by about 2.52% annually, driven largely by contractual services, personnel costs, and pension obligations. Public safety contracts remain one of the City’s largest and fastest-growing expenses, and pension obligations continue to create long term financial pressure. To help manage these costs, the City established a Section 115 Pension Trust, which allows the City to set aside funds specifically for future pension obligations. Per the City’s Fiscal Policy, it maintains an emergency reserve equal to 18% of the annual operating expenditures, as well as a recommendation of an additional 2% for day-to-day flexibility.

The Capital Improvement Program outlines major infrastructure projects, with near term projects fully funded and longer term needs still being evaluated. Centralizing all General Fund capital projects into the CIP Fund improves transparency and helps the City plan for future investments. Significant upcoming projects include sand replenishment, Del Mar undergrounding, Calafia Complete Streets, golf course improvements, water reclamation upgrades, and pump station rehabilitations.

The City’s Enterprise Funds: Water, Sewer, Storm Drain, Solid Waste, and Golf. Within these funds, the expenditures support essential utility and environmental services. The Water Fund went through a water rate adjustment in FY 2025-26 to help with cost recovery for water costs and future capital improvement projects. Rate adjustments were necessary as these adjustments help to keep up with rising costs and infrastructure needs. The Sewer Fund remains stable but will undergo a new cost of service study within the current budget cycle for FY 2026-27 and FY 2027-28. The Storm Drain Fund faces a structural deficit because its fee has not increased since 1993 and now must cover responsibilities previously funded by the Clean Ocean Fee, creating a situation where the fees collected are no longer sufficient to cover the expanded regulatory and operational responsibilities. The Solid Waste Fund continues to support state mandated recycling and waste diversion programs but also faces increased pressure due to shifting responsibilities.

Overall, while San Clemente remains financially stable today, long term challenges require proactive planning. Strengthening revenues, updating outdated fees, protecting reserves, and continuing to invest in infrastructure will be essential to maintaining the high quality of life residents expect.

Bond Rating
Based on the City of San Clemente’s credit strength, the City received the highest credit rating of “AAA”. An obligation rated “AAA” is the highest rating. This means that the City’s capacity to meet its financial commitment on a debt obligation is extremely strong.

Decision Packages
Decision packages incorporated into the budget, excluding staffing changes, total $872,190. General Fund decision packages total $224,850 focusing on Beach Club operations and other one-time costs.

Other fund costs decision packages total $647,340 to address equipment needs and short-term operational needs. These decision packages are all one-time costs.

The following is a summary of budgeted decision packages incorporated into the budget over the two-year budget cycle:

Budgeted Decision Packages (FY 2026-27 and 2027-28) Amount Operating
Beach Club Operations, net of revenues $ 32,850 (a)

One-Time
Digitization of paper files ($60,000 annually for 2 years) 120,000 Recodification of Municipal Code 50,000
Records Retention Update 7,000
Marine Safety ATV 15,000

General Fund total cost (net) $ 224,850
41 51
Financial Overview

Other Fund Decision Packages - Budgeted
One-Time
Golf Course Tree Replacement and Canopy Restoration $ 50,000 Golf Equipment 200,000
Vehicle Mitigation Barricades 135,000
Golf Course Agronomy Consultant 65,000
Outdoor Digital Display 20,080
Consultant for Sewer Cost of Service Study 85,000
HD Cam Crawler 92,260
Other Funds Total $ 647,340

Total Decision Packages - Budgeted $ 872,190
(a) Includes one-time cost of $120,000 and only reflects the initial year 42 52
The Budget Process
The Budget Process
The City's budget process begins in November and concludes in June every other year. An executive team approach is used to develop the budget. Senior management representatives from each department, along with the City Manager, utilize guidance provided by the City Council through various processes. Additionally, operational issues which affect the budget are examined and financial recommendations are incorporated into the budget. The table on the following page illustrates the budget process in detail.

The Capital Improvement Program Process
The Capital Improvement Program (CIP) Committee, consisting of members from all City departments, prepares and updates the six-year CIP program. Projects funded are reviewed by the CIP Committee as a part of the budget process to ensure that the City’s priorities are addressed and that staffing levels and projected revenues are in place to perform the projects.

City management reviews the CIP Committee’s prioritized list of proposed capital improvement projects and funding sources during the review of the operating budgets. The final Capital Improvement Program is presented during the budget workshops in May in conjunction with the City’s Biennial Budget. The City Council adopts a resolution approving the fiscal years Capital Improvement Program, along with the operating budgets, in June.

Level of Control and Changes to Adopted Budget
Budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is exercised at the fund level.

Administrative policies provide guidelines on budget transfers and the authorization necessary to implement transfers. Generally, there are two types of budget transfers:

Budget Adjustment: This is a transfer which does not change the total appropriated amount within a fund and does not require Council action. Depending upon the budget category affected by the transfer, approval may be granted by the City Manager at the Department Head level request. Department Heads have discretion to reapportion amounts between certain line items within a program but may not exceed total appropriated amounts for each program. Capital expenditures changes for capital outlay items must be approved by the City Manager and/or City Council. Funds appropriated for salaries and benefits may not be expended for any other purpose without approval by the City Manager. The City Manager may transfer funds within and between programs and departments.

Budget Amendment: This is an adjustment to the total appropriated amount within a fund which was not included in the original budget. These supplemental appropriations are presented to City Council in an agenda report and require the passage by a simple majority of the City Council for approval. Types of modifications can be categorized as follows:
 Unanticipated revenue which was not projected in the budget may be appropriated by Council for expenditure in the year received.
 Prior year reserves or fund balances may be appropriated to fund items not previously included in the adopted budget.

Reserves/fund balances exceeding minimum amounts required by administrative policies may be appropriated if it is determined to be in the best interest of the City. Council may also appropriate reserves in case of emergencies or unusual circumstances.
 Transfers between funds require a motion and agreement by the majority of the City Council.

Unexpended unencumbered appropriations automatically lapse at the end of the fiscal year and are included in the ending fund balance calculations within each fund.
43 53
The Budget Process
Budget Planning (December - January)
•Budget assumptions and policies are developed
•Budget instructions, training videos, and supporting information is published to budget website
•Capital Improvement Program development kickoff meeting Priority Setting (January - March)
•A Financial Plan is started by staff which reviews reserves, forecasts, and is used to address upcoming impacts on the City over the next five years.

Recommended budget alternatives are reviewed by City management and actions are identified to be incorporated into the budget.

Staff Budget Development (January - March)
•Budget Kickoff/Staff Training Workshop
•Departments prepare base revenue and expenditure budgets by program, whereby expenditures and revenues are related to the City Council and community goals.
•Decision packages are submitted for consideration. These include requests for reclassifications, new positions, new programs, or capital equipment.

Staff Budget Review (March - April)
•City Manager, Assistant City Manager and Department Heads review base budgets, decision package requests, and the CIP Budget. •City Manager considers the projected amount of available resources, direction provided by the City Council, the City's fiscal policies and the most cost-effective and efficient method of service delivery to the public. •Proposed budget is finalized.
•Budget document is prepared, highlighting the major changes in the budget from the previous year.

Council Budget Review and Adoption (May - June)
•In May, the proposed budget is generally submitted for City Council review and a workshop is held.
•In June, a public hearing is held and the City Council adopts the budget by resolution.
•Final Adopted Budget document is published and made available to the public after June.
44 54
Accounting Systems & Controls
Fund Accounting Structure
The accounts of the City are organized on the basis of funds, each fund is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. The funds utilized by the City are grouped into generic fund types (Governmental, Proprietary, and Fiduciary). Governmental funds are largely supported by general taxes. Proprietary funds are operated to recover the costs of operation through charges for services. Fiduciary funds are typically where the City acts in a trustee capacity on behalf of another person or entity. The categories within these fund types are summarized below:

Governmental Funds:

The General Fund is the general operating fund of the City. It is used to account for all financial resources traditionally associated with governments which are not required to be accounted for in another fund.

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted by law or administrative action to expenditures for specified purposes.

Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed through proprietary funds or fiduciary funds).

Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs other than capitalized leases and compensated absences which are paid from the governmental funds. The only debt service fund of the City (Negocio Debt Service Fund) was closed in FY 2017-18.

Proprietary Funds:

Enterprise Funds are used to account for operations that are financed and operated in a manner similar to a private business enterprise. The intent of the City in using this type of fund is to determine that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.

Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost reimbursement basis.

Fiduciary Funds:

Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governments. Since activities recorded within these funds are outside the control of the City Council, these funds are not included within this budget document. The existing funds relate to conduit debt activity.

Fund Changes
In accordance with generally accepted accounting principles, the City reviews all funds to determine the minimum number of funds necessary for financial management and control. The City currently has 29 budgeted funds in FY 2026-27 and FY 2028-29, including the General Fund. The Police Grant Special Revenue fund’s revenue source can be utilized in the General Fund for the police services contract so it will be consolidated with the General Fund. The Senior Mobility Fund, which was previously reported in the Gas Tax Fund, is being separated for reporting purposes to identify the tracking and spending of those funds, similar to the Transit Special Revenue Fund which is subsidized by the General Fund. At the end of FY 2025-26, the Disaster Relief Special Revenue Fund and the Clean Ocean will be closed and no longer have an ongoing funding source, and have fully utilized all available resources. In this budget. The Reserve Fund is being renamed the Capital Improvement Fund and the Accrued Leave Reserve will be transferred to the General Fund, so that only capital related activities are reported in that fund. 45 55
Accounting Systems & Controls
The following table provides a summary of the various funds of the City of San Clemente and includes both Major and Non-Major funds as reported in the City’s Annual Comprehensive Financial Report (ACFR). Additional information on each fund is available in various sections of this budget. It also includes the two funds that are closing out at the end of FY 2025-26. * Recognized as a major fund in the City’s ACFR. Major funds represent the significant activities of the City and basically include any fund’s revenues or expenditures, excluding other financing sources and uses constitute more than 10% of the City’s revenues or expenditures. The City can also select a major fund.
** The Police Grants fund and the Clean Ocean Fund are being consolidated into other funds in FY 2026-27. The Police Grants fund is being consolidated into the General Fund and the Clean Ocean Fund activities are being consolidated into the Storm Drain, Solid Waste, Sewer, Water and Gas Tax funds.

Funds not budgeted and excluded from the schedule above include the Employee Benefits Fund and the Pension Trust Fiduciary Fund.

Governmental Funds
General Fund* Special Revenue
Funds
Street
Improvement
Gas Tax
Miscellaneous
Grants
Air Quality
Improvement
Local Cable
Infrastructure
Police Grants**
Senior Mobility
Transit Fund
Building Homes &
Jobs Act
Disaster Relief
Capital Projects
Funds
Parks Acquisition
and Development
Local Drainage
Facilities
RCFPP
Public Facilities
Construction Fee
Developers
Improvement
Capital Improvement
Low/Moderate
Income Housing
In Lieu Housing Fund
Proprietary Funds
Enterprise
Funds
Water Fund*
Sewer Fund*
Storm Drain
Clean Ocean**
Solid Waste
Golf Course*
Internal Service
Funds
Central Services
Information
Technology
Fleet
Medical Insurance
Workers'
Compensation
General Liability
46 56
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Accounting Systems & Controls
Budgetary Basis and Basis of Accounting
The budget constitutes the legal authority for expenditures. The budget is adopted with budgetary control at the fund level so expenditures may not legally exceed appropriations at that level of detail. Budgetary controls are maintained to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. Transfers or revision within funds are allowed, but only the City Council has the legal authority to increase or decrease a given fund’s budget. The Annual Comprehensive Financial Report (ACFR) shows the status of the City’s finances on the basis of “generally accepted accounting principles” (GAAP) and on a budgetary basis. In most cases, this conforms to the way the City prepares its budget.

Governmental fund types (General Fund, Special Revenue Funds, etc.) utilize the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available. Expenditures are recognized when the liability has been incurred, with the exception that principal and interest payments on general long-term debt are recognized when due. Budgets for governmental fund types are adopted on a basis consistent with GAAP.

Proprietary fund types, including Enterprise (Water, Sewer, etc.) and Internal Service Funds (Information Technology, Fleet Operating, etc.), are operated in a manner similar to private business enterprise. These funds use the accrual basis of accounting where revenues are recognized when earned and expenses are recognized when incurred. These funds are budgeted based on Net Working Capital to provide a more accurate picture of whether there is sufficient funding to cover the cost of current operations. Net Working Capital is essentially current assets minus current liabilities with capital assets excluded from the calculation. Exceptions from GAAP are as follows:
 Compensated absences liabilities, in Enterprise and Internal Service Funds, that are expected to be liquidated with expendable available financial resources are accrued as earned by employees (GAAP) as opposed to being expended when paid (Budget).
 Pension receivable and payables that are not short term in nature are excluded from the new working capital calculation.  Principal payments on long-term debt within Enterprise & Internal Service Funds are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis.  Capital outlay within the Enterprise Funds are recorded as assets on a GAAP basis and expended on a Budget basis.

Financial Management
The City of San Clemente is committed to the highest standards of responsible financial reporting and management practices.

These standards are based on established financial principles and practices, formal fiscal policies and state law. These practices set forth the basic framework related to the core values of the City and to achieve Financial Sustainability addressed as follows:
o Financial stability by taking a long-term approach to its finances by developing and maintaining long-term plans, carefully weighing the cost and benefits of development opportunities and adhering to sound debt, reserve and investment policies. o Quality of life and local economic vitality is maintained to ensure a safe and healthy atmosphere for its residents, businesses and visitors, while preserving and enhancing its unique cultural and environmental attributes. o Environmental and economic sustainability by supporting continued investment in physical infrastructure and facilities and by having policies and programs that support a clean and healthy natural environment. o Transparency and engagement for the community by producing planning and report mechanisms that make it clear how the City plans to use its resources to achieve the community vision.

The City, including the City Council, Mayor and staff work together to ensure that all financial matters of the City are addressed with care, integrity and in the best interest of the citizens. The City is committed to engaging the public as a partner in formulating plans and delivering services.
47 57
Accounting Systems & Controls
Established policies are presented in the Fiscal Policy section. The Fiscal Policy statements address the following:
 Operating Budget  Revenues
 Expenditures  Utility Rates and Fees
 Capital Improvement  Debt - Short term and Long Term  Fund Balance and Reserves  Investments
 Accounting, Auditing and Financial Reporting  Long Term Financial Planning  Risk Financing  Pension
The Fiscal Policy section also addresses State Proposition 4 (Gann Initiative), which places limits on the amount of revenue that can be spent by government agencies, and the City’s Debt Summary, which lists all outstanding debt of the City and related entities.

In addition to having Fiscal Policies in place, the City’s financial processes include procedures to maximize the financial resources of the City by focusing on Internal Controls throughout the City, and the proper allocation of costs to responsible departments through Interdepartmental Charges and the City’s Cost Allocation Plan. These charges are discussed in more detail in the following paragraphs.

Internal Controls
The City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute assurance, that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management.

Interdepartmental Charges
Interdepartmental charges are cost allocations for goods and services provided by one City department to another City department on a cost reimbursement basis. A fair and equitable methodology is determined for identifying and distributing direct and indirect costs from a service provider to the service consumer. As an example, Internal Service Funds receive revenues from other City departments for charges such as insurance, postage, duplicating, central services, data processing, communications, fleet rental, etc. These interdepartmental charges are established based generally upon actual use of the goods or services.

Replacement charges to the Fleet Replacement Reserve are based upon the anticipated cost of replacement. Replacement charges are allocated over the life of the vehicle or equipment.

Cost Allocation Plan
The Finance and Administrative Services Department produces a Cost Allocation Plan which is used to distribute General Fund administrative costs to the various City operations. The allocation of these costs is based on a variety of factors. Examples include allocating (1) Human Resource costs based on the number of employees in the payroll system per department, (2) a portion of Finance costs based on the number of cash receipting transactions per fund, and (3) City Clerk costs based on a thirty-six month rolling average of agenda items by department. The cost allocation plan is based on prior fiscal year actual costs. 48 58
All Funds Budget Overview
Fiscal Years 2026-27 and 2027-28
Where the Money Comes From*
Where the Money Goes*
*All amounts are rounded
Property
Taxes $50.1
Sales Taxes
$12.9
Other Taxes
$7.1
Service
Charges $51.9
Intergovernmental
$13.5
Interest & Rents
$7.4
Transfers $12.6
Permits & Fees $1.8
Fines $0.9
Other Revenue
$28.7
FY 2026-27
Property
Taxes $52.1
Sales Taxes
$13.2
Other Taxes
$7.3
Service Charges
$55.2 Intergovernmental $15.3
Interest & Rents $7.7
Transfers $4.4
Permits & Fees $1.7
Fines $0.9
Other Revenue
$26.1
FY 2027-28
Personnel
$38.1
Contract Services $68.6
Supplies
$17.7
Other
Charges
$19.5
Capital $24.1 Interfund
Payments $24.1
Debt
Service $2.5
FY 2026-27
Personnel
$40.0
Contract Services $70.1
Supplies
$19.1
Other Charges
$19.5 Capital $21.2 Interfund
Payments $16.0
Debt
Service $2.5
FY 2027-28
All amounts shown in millions
49 59
Beginning Revenues Expenditures Ending Changes in %
Balance FY 2026-27 FY 2026-27 Balance Balances Change
General Fund* 26,236,864 88,916,520 94,359,900 20,793,484 (5,443,380) -21% Special Revenue Funds
Street Improvement 1,326,850 1,849,000 2,566,770 609,080 (717,770) -54% Gas Tax 3,444,630 5,224,690 7,857,290 812,030 (2,632,600) -76% Senior Mobility 340,560 137,960 188,090 290,430 (50,130) -15% Miscellaneous Grants 112,920 775,960 556,130 332,750 219,830 195% Building Homes & Jobs Act (SB2) Fund 294,560 136,220 335,610 95,170 (199,390) 0% Disaster Relief 0 0 0 0 0 0%
Air Quality Improvement 307,780 85,800 80,000 313,580 5,800 2% Local Cable Infrastructure 1,658,830 215,000 30,080 1,843,750 184,920 11% Police Grants 239,550 0 0 239,550 0 0%
Local Transit Program Grants (1,634,240) 3,668,830 2,582,690 (548,100) 1,086,140 0% Capital Project Funds
Parks Acquisition & Dev. 166,920 40,200 202,730 4,390 (162,530) -97% Local Drainage Facilities 656,660 47,500 277,480 426,680 (229,980) -35% RCFPP 967,170 22,500 9,910 979,760 12,590 1%
Public Facilities Construction Fee 477,410 54,500 14,610 517,300 39,890 8% Developers Improvement 4,768,240 240,900 12,200 4,996,940 228,700 5% In-Lieu Housing 11,481,700 42,800 6,000 11,518,500 36,800 100% Low/ Moderate Income Housing 3,165,280 25,500 80,540 3,110,240 (55,040) -2% Capital Improvement 6,256,910 8,385,000 5,280,000 9,361,910 3,105,000 50% Enterprise Funds
Water - Operating 1,147,320 31,021,012 30,303,110 1,865,222 717,902 63% - Depreciation Reserve 12,048,888 3,580,129 5,875,840 9,753,177 (2,295,711) -19% - Acreage Fee 270,889 22,890 16,450 277,329 6,440 2%
- Other Agency (81,817) 691,109 514,660 94,632 176,449 -216% Sewer - Operating 776,926 13,314,795 13,682,820 408,901 (368,025) -47% - Depreciation Reserve 134,135 3,170,618 3,104,980 199,773 65,638 49% - Connection Fee 97,727 25,022 117,700 5,049 (92,678) -95% - Other Agency 1,268,172 352,935 60,310 1,560,797 292,625 23% Storm Drain - Operating 175,460 2,128,050 2,198,040 105,470 (69,990) -40% - Depreciation Reserve (500,450) 1,594,000 1,615,790 (522,240) (21,790) 4% Solid Waste Management 402,340 1,069,100 1,185,480 285,960 (116,380) -29% Golf - Operating 2,719,848 4,158,078 5,199,450 1,678,476 (1,041,372) -38% - Depreciation Reserve 3,928,340 279,668 243,480 3,964,528 36,188 1% - Capital Improvement 856,272 1,795,404 905,470 1,746,206 889,934 104% Clean Ocean 0 0 0 0 0 #DIV/0!
Internal Service Funds
Central Services 302,460 392,620 450,360 244,720 (57,740) -19% Information Technology 304,990 2,917,180 2,827,740 394,430 89,440 29% Contract Fleet Services 425,580 1,566,798 1,590,370 402,008 (23,572) -6% Fleet Replacement Reserve 4,873,140 1,128,992 840,330 5,161,802 288,662 6% Medical Insurance 306,100 4,394,440 4,474,340 226,200 (79,900) -26% Workers' Compensation 1,980,630 575,100 661,420 1,894,310 (86,320) -4% General Liability Self Insurance 3,084,420 2,884,730 4,329,330 1,639,820 (1,444,600) -47% Total All Funds 94,789,964 186,931,550 194,637,500 87,084,014 (7,705,950) -8% * Includes transfers in/out with Revenues and Expenditure amounts All Funds Budget Summary
FY 2026-27
50 60
Beginning Revenues Expenditures Ending Changes in %
Balance FY 2027-28 FY 2027-28 Balance Balances Change
General Fund* 20,793,484 91,662,440 92,335,110 20,120,814 (672,670) -3% Special Revenue Funds
Street Improvement 609,080 1,849,000 2,416,770 41,310 (567,770) -93% Gas Tax 812,030 4,365,750 4,082,290 1,095,490 283,460 35% Senior Mobility 290,430 140,910 188,090 243,250 (47,180) -16% Miscellaneous Grants 332,750 425,960 396,130 362,580 29,830 9% Building Homes & Jobs Act (SB2) Fund 95,170 253,000 348,020 150 (95,020) 0% Disaster Relief 0 0 0 0 0 0%
Air Quality Improvement 313,580 85,800 80,000 319,380 5,800 2% Local Cable Infrastructure 1,843,750 215,000 10,000 2,048,750 205,000 11% Police Grants 239,550 0 0 239,550 0 0%
Local Transit Program Grants (548,100) 2,881,250 1,841,690 491,460 1,039,560 0% Capital Project Funds
Parks Acquisition & Dev. 4,390 28,200 22,730 9,860 5,470 125% Local Drainage Facilities 426,680 47,500 19,070 455,110 28,430 7% RCFPP 979,760 20,500 9,910 990,350 10,590 1%
Public Facilities Construction Fee 517,300 52,500 14,610 555,190 37,890 7% Developers Improvement 4,996,940 240,900 12,200 5,225,640 228,700 5% In-Lieu Housing 11,518,500 42,800 6,000 11,555,300 36,800 100% Low/ Moderate Income Housing 3,110,240 17,500 80,540 3,047,200 (63,040) -2% Capital Improvement 9,361,910 370,000 1,620,000 8,111,910 (1,250,000) -13% Enterprise Funds
Water - Operating 1,865,222 30,735,720 32,071,730 529,212 (1,336,010) -72% - Depreciation Reserve 9,753,177 3,470,064 4,975,840 8,247,401 (1,505,776) -15% - Acreage Fee 277,329 24,047 16,450 284,926 7,597 3%
- Other Agency 94,632 701,919 514,660 281,891 187,259 198% Sewer - Operating 408,901 13,783,248 13,953,690 238,459 (170,442) -42% - Depreciation Reserve 199,773 3,186,748 1,454,980 1,931,541 1,731,768 867% - Connection Fee 5,049 12,928 17,700 277 (4,772) -95%
- Other Agency 1,560,797 443,106 10,310 1,993,593 432,796 28% Storm Drain - Operating 105,470 2,178,050 2,256,010 27,510 (77,960) -74% - Depreciation Reserve (522,240) 5,499,000 4,961,790 14,970 537,210 -103% Solid Waste Management 285,960 877,560 1,145,200 18,320 (267,640) -94% Golf - Operating 1,678,476 4,138,453 5,104,840 712,089 (966,387) -58% - Depreciation Reserve 3,964,528 278,212 43,480 4,199,260 234,732 6% - Capital Improvement 1,746,206 1,810,485 3,005,470 551,221 (1,194,985) -68% Clean Ocean 0 0 0 0 0 #DIV/0!
Internal Service Funds
Central Services 244,720 392,620 450,780 186,560 (58,160) -24% Information Technology 394,430 2,912,180 2,929,230 377,380 (17,050) -4% Contract Fleet Services 402,008 1,563,420 1,631,810 333,618 (68,390) -17% Fleet Replacement Reserve 5,161,802 1,102,370 892,310 5,371,862 210,060 4% Medical Insurance 226,200 4,493,440 4,574,340 145,300 (80,900) -36% Workers' Compensation 1,894,310 575,100 707,770 1,761,640 (132,670) -7% General Liability Self Insurance 1,639,820 3,040,700 4,240,950 439,570 (1,200,250) -73% Total All Funds 87,084,014 183,918,380 188,442,500 82,559,894 (4,524,120) -5% * Includes transfers in/out with Revenues and Expenditure amounts All Funds Budget Summary
FY 2027-28
51 61
Beginning Receipts Fines & Total
Fund Permit from Otr Charges Interest Internal Other FY 2026-27 Fund Description Balance Taxes & Fees Agencies for Svcs. & Rentals Transfers Revenues Budget General $26,236,864 $70,005,160 $1,527,380 $718,430 $8,144,180 $4,055,570 $3,768,870 $696,930 $115,153,384 Special Revenue:

Street Improvement 1,326,850 0 0 1,509,000 0 90,000 250,000 0 3,175,850 Gas Tax 3,444,630 0 0 5,087,690 0 97,000 0 40,000 8,669,320 Senior Mobility 340,560 0 0 106,960 0 8,000 23,000 0 478,520 Miscellaneous Grants 112,920 0 0 765,960 0 0 0 10,000 888,880 Building Homes & Jobs 294,560 0 0 124,220 0 12,000 0 0 430,780 Disaster Relief 0 0 0 0 0 0 0 0 0
Air Quality Imprvmnt. 307,780 0 0 84,000 0 1,800 0 0 393,580 Local Cable Infrastructure 1,658,830 185,000 0 0 0 30,000 0 0 1,873,830 Police Grants 239,550 0 0 0 0 0 0 0 239,550
Local Transit Program Grants (1,634,240) 0 0 3,318,830 0 0 350,000 0 2,034,590 6,091,440 185,000 0 10,996,660 0 238,800 623,000 50,000 18,184,900 Capital Projects:

Parks Acquis. & Dev. 166,920 0 20,000 0 0 20,200 0 0 207,120 Local Drainage Fac. 656,660 0 500 0 0 47,000 0 0 704,160 RCFPP 967,170 0 1,000 0 0 21,500 0 0 989,670
Pub. Facilities Const. 477,410 0 24,000 0 0 30,500 0 0 531,910 Developers Imprvmnt. 4,768,240 0 129,450 0 0 111,450 0 0 5,009,140 In-Lieu Housing 11,481,700 0 0 0 0 42,800 0 0 11,524,500 Low/Mod Income Housing 3,165,280 0 0 0 0 25,500 0 0 3,190,780 Capital Improvement 6,256,910 0 0 105,000 0 300,000 5,200,000 2,780,000 14,641,910 27,940,290 0 174,950 105,000 0 598,950 5,200,000 2,780,000 36,799,190 Enterprise:

Water- Operating 1,147,320 0 0 169,000 26,516,940 68,572 3,000,000 1,266,500 32,168,332 - Depr. Reserve 12,048,888 0 0 0 0 720,129 0 2,860,000 15,629,017 - Acreage Fee 270,889 0 6,700 0 0 16,190 0 0 293,779
- Other Agency (81,817) 0 0 0 0 (4,891) 0 696,000 609,292 Sewer- Operating 776,926 0 500 1,010,200 12,150,000 119,425 0 34,670 14,091,721 - Depr. Reserve 134,135 0 0 0 0 20,618 0 3,150,000 3,304,753 - Conn. Fee 97,727 0 0 0 0 25,022 0 0 122,749
- Other Agency 1,268,172 0 0 0 0 184,935 0 168,000 1,621,107 Storm Drain Utility 175,460 50 0 0 1,175,000 0 950,000 3,000 2,303,510 - Depr. Reserve (500,450) 0 0 445,590 0 0 258,410 890,000 1,093,550 Solid Waste Mgmt 402,340 0 9,000 16,150 529,250 4,500 200,000 310,200 1,471,440 Golf - Operating 2,719,848 0 0 0 3,242,870 915,208 0 0 6,877,926 - Depr. Reserve 3,928,340 0 0 0 0 70,668 39,000 170,000 4,208,008 - Capital Impr. 856,272 0 0 0 0 15,404 1,750,000 30,000 2,651,676 Clean Ocean 0 0 0 0 0 0 0 0 0
23,244,050 50 16,200 1,640,940 43,614,060 2,155,780 6,197,410 9,578,370 86,446,860 Internal Service:

Central Services 302,460 0 0 0 0 9,900 382,720 0 695,080 Information Technology 304,990 0 0 0 0 30,000 2,887,180 0 3,222,170 Fleet- Operating 425,580 0 0 0 0 12,048 1,554,550 200 1,992,378 - Replacement 4,873,140 0 0 0 0 137,952 991,040 0 6,002,132 Medical Insurance 306,100 0 0 0 180,000 3,000 0 4,211,440 4,700,540 Worker's Comp. 1,980,630 0 0 0 0 45,100 0 530,000 2,555,730 General Liability Self Ins. 3,084,420 0 0 0 0 100,700 0 2,784,030 5,969,150 11,277,320 0 0 0 180,000 338,700 5,815,490 7,525,670 25,137,180 Total All Funds $94,789,964 $70,190,210 $1,718,530 $13,461,030 $51,938,240 $7,387,800 $21,604,770 $20,630,970 $281,721,514 All Funds Summary-Revenues by Category
FY 2026-27
52 62
Ending
Contractual Other Capital Interfund Debt Fund Total
Fund Description Personnel Supplies Services Charges Outlay Payments Service Balance Budget General $25,317,100 $1,547,110 $50,779,880 $1,795,470 $1,370,000 $12,007,340 $1,543,000 $20,793,484 $115,153,384 Special Revenue:

Street Improvement 0 0 830,000 0 1,700,000 36,770 0 609,080 3,175,850 Gas Tax 0 50,000 20,000 0 7,200,000 587,290 0 812,030 8,669,320 Senior Mobility 0 0 0 185,000 0 3,090 0 290,430 478,520 Miscellaneous Grants 0 0 220,960 37,000 290,000 8,170 0 332,750 888,880 Building Homes & Jobs Act 283,780 2,660 27,180 0 0 21,990 0 95,170 430,780 Disaster Relief 0 0 0 0 0 0 0 0 0
Air Quality Imprvmnt. 0 0 80,000 0 0 0 0 313,580 393,580 Local Cable Infrastructure 0 0 0 0 30,080 0 0 1,843,750 1,873,830 Police Grants 0 0 0 0 0 0 0 239,550 239,550
Local Transit Program Grants 0 0 1,775,790 0 740,000 66,900 0 (548,100) 2,034,590 283,780 52,660 2,953,930 222,000 9,960,080 724,210 0 3,988,240 18,184,900 Capital Projects:

Parks Acquis. & Dev. 0 0 0 0 180,000 22,730 0 4,390 207,120 Local Drainage Fac. 0 0 0 0 0 277,480 0 426,680 704,160 RCFPP 0 0 0 0 0 9,910 0 979,760 989,670
Pub. Facilities Const. 0 0 0 0 0 14,610 0 517,300 531,910 Developers Imprvmnt. 0 0 0 0 0 12,200 0 4,996,940 5,009,140 In-Lieu Housing 0 0 5,000 0 0 1,000 0 11,518,500 11,524,500 Low/Mod Income Housing 0 0 75,000 0 0 5,540 0 3,110,240 3,190,780 Capital Improvement 0 0 155,000 0 5,125,000 0 0 9,361,910 14,641,910 0 0 235,000 0 5,305,000 343,470 0 30,915,720 36,799,190 Enterprise:

Water- Operating 5,113,420 13,796,980 4,464,310 3,789,950 0 2,237,830 900,620 1,865,222 32,168,332 - Depr. Reserve 0 0 1,105,000 0 1,500,000 3,270,840 0 9,753,177 15,629,017 - Acreage Fee 0 0 0 0 0 16,450 0 277,329 293,779
- Other Agency 0 0 500,000 0 0 14,660 0 94,632 609,292
Sewer- Operating 3,934,320 1,295,600 3,165,190 3,471,860 92,260 1,723,590 0 408,901 14,091,721 - Depr. Reserve 0 0 400,000 0 2,550,000 154,980 0 199,773 3,304,753 - Conn. Fee 0 0 0 0 100,000 17,700 0 5,049 122,749
- Other Agency 0 0 50,000 0 0 10,310 0 1,560,797 1,621,107 Storm Drain Utility 543,050 10,760 383,410 1,146,500 0 114,320 0 105,470 2,303,510 - Depr. Reserve 0 0 150,000 0 1,404,000 61,790 0 (522,240) 1,093,550 Solid Waste Mgmt 161,650 17,650 902,580 20,870 0 82,730 0 285,960 1,471,440 Golf - Operating 1,318,190 292,870 875,050 214,270 0 2,499,070 0 1,678,476 6,877,926 - Depr. Reserve 0 0 0 0 235,000 8,480 0 3,964,528 4,208,008 - Capital Impr. 0 0 0 0 700,000 205,470 0 1,746,206 2,651,676 Clean Ocean 0 0 0 0 0 0 0 0 0
11,070,630 15,413,860 11,995,540 8,643,450 6,581,260 10,418,220 900,620 21,423,280 86,446,860 Internal Service:

Central Services 5,030 65,650 292,800 1,550 0 50,810 34,520 244,720 695,080 Information Technology 1,205,060 1,840 1,278,100 15,900 89,000 237,840 0 394,430 3,222,170 Fleet- Operating 0 630,450 867,110 0 0 92,810 0 402,008 1,992,378 - Replacement 0 0 0 0 819,930 20,400 0 5,161,802 6,002,132 Medical Insurance 0 0 4,850 4,406,650 0 62,840 0 226,200 4,700,540 Worker's Comp. 0 11,100 5,000 595,000 0 50,320 0 1,894,310 2,555,730 General Liability Self Ins. 197,230 1,130 231,100 3,846,860 0 53,010 0 1,639,820 5,969,150 1,407,320 710,170 2,678,960 8,865,960 908,930 568,030 34,520 9,963,290 25,137,180 Total All Funds $38,078,830 $17,723,800 $68,643,310 $19,526,880 $24,125,270 $24,061,270 $2,478,140 $87,084,014 $281,721,514 All Funds Summary-Expenditures by Category
FY 2026-27
53 63
I
Beginning Receipts Fines & Total
Fund Permit from Otr Charges Interest Internal Other FY 2027-28 Fund Description Balance Taxes & Fees Agencies for Svcs. & Rentals Transfers Revenues Budget General $20,793,484 $72,411,760 $1,546,480 $664,430 $8,196,810 $4,365,740 $3,768,870 $708,350 $112,455,924 Special Revenue:

Street Improvement 609,080 0 0 1,509,000 0 90,000 250,000 0 2,458,080 Gas Tax 812,030 0 0 4,273,750 0 92,000 0 0 5,177,780
Senior Mobility 290,430 0 0 108,910 0 5,000 27,000 0 431,340 Miscellaneous Grants 332,750 0 0 415,960 0 0 0 10,000 758,710 Building Homes & Jobs 95,170 0 0 0 0 3,000 250,000 0 348,170 Disaster Relief 0 0 0 0 0 0 0 0 0
Air Quality Imprvmnt. 313,580 0 0 84,000 0 1,800 0 0 399,380 Local Cable Infrastructure 1,843,750 185,000 0 0 0 30,000 0 0 2,058,750 Police Grants 239,550 0 0 0 0 0 0 0 239,550
Local Transit Program Grants (548,100) 0 0 2,531,250 0 0 350,000 0 2,333,150 3,988,240 185,000 0 8,922,870 0 221,800 877,000 10,000 14,204,910 Capital Projects:

Parks Acquis. & Dev. 4,390 0 20,000 0 0 8,200 0 0 32,590 Local Drainage Fac. 426,680 0 500 0 0 47,000 0 0 474,180 RCFPP 979,760 0 1,000 0 0 19,500 0 0 1,000,260
Pub. Facilities Const. 517,300 0 24,000 0 0 28,500 0 0 569,800 Developers Imprvmnt. 4,996,940 0 129,450 0 0 111,450 0 0 5,237,840 In-Lieu Housing 11,518,500 0 0 0 0 42,800 0 0 11,561,300 Low/Mod Income Housing 3,110,240 0 0 0 0 17,500 0 0 3,127,740 Capital Improvement 9,361,910 0 0 0 0 340,000 0 30,000 9,731,910 30,915,720 0 174,950 0 0 614,950 0 30,000 31,735,620
Enterprise:

Water- Operating 1,865,222 0 0 169,000 29,183,550 116,670 0 1,266,500 32,600,942 - Depr. Reserve 9,753,177 0 0 0 0 610,064 0 2,860,000 13,223,241 - Acreage Fee 277,329 0 6,700 0 0 17,347 0 0 301,376
- Other Agency 94,632 0 0 0 0 5,919 0 696,000 796,551
Sewer- Operating 408,901 0 500 1,040,530 12,663,000 75,218 0 4,000 14,192,149 - Depr. Reserve 199,773 0 0 0 0 36,748 0 3,150,000 3,386,521 - Conn. Fee 5,049 0 0 0 0 12,928 0 0 17,977
- Other Agency 1,560,797 0 0 0 0 275,106 0 168,000 2,003,903 Storm Drain Utility 105,470 50 0 0 1,175,000 0 1,000,000 3,000 2,283,520 - Depr. Reserve (522,240) 0 0 4,459,000 0 0 150,000 890,000 4,976,760 Solid Waste Mgmt 285,960 0 9,000 16,150 537,710 4,500 0 310,200 1,163,520 Golf - Operating 1,678,476 0 0 0 3,242,870 895,583 0 0 5,816,929 - Depr. Reserve 3,964,528 0 0 0 0 69,212 39,000 170,000 4,242,740 - Capital Impr. 1,746,206 0 0 0 0 30,485 1,750,000 30,000 3,556,691 Clean Ocean 0 0 0 0 0 0 0 0 0
21,423,280 50 16,200 5,684,680 46,802,130 2,149,780 2,939,000 9,547,700 88,562,820 Internal Service:

Central Services 244,720 0 0 0 0 9,900 382,720 0 637,340 Information Technology 394,430 0 0 0 0 25,000 2,887,180 0 3,306,610 Fleet- Operating 402,008 0 0 0 0 8,670 1,554,550 200 1,965,428 - Replacement 5,161,802 0 0 0 0 111,330 991,040 0 6,264,172 Medical Insurance 226,200 0 0 0 180,000 2,000 0 4,311,440 4,719,640 Worker's Comp. 1,894,310 0 0 0 0 45,100 0 530,000 2,469,410 General Liability Self Ins. 1,639,820 0 0 0 0 100,700 0 2,940,000 4,680,520 9,963,290 0 0 0 180,000 302,700 5,815,490 7,781,640 24,043,120 Total All Funds $87,084,014 $72,596,810 $1,737,630 $15,271,980 $55,178,940 $7,654,970 $13,400,360 $18,077,690 $271,002,394 All Funds Summary-Revenues by Category
FY 2027-28
54 64
Ending
Contractual Other Capital Interfund Debt Fund Total
Fund Description Personnel Supplies Services Charges Outlay Payments Service Balance Budget General $26,580,660 $1,583,880 $52,283,590 $1,668,910 $1,265,000 $7,390,070 $1,563,000 $20,120,814 $112,455,924 Special Revenue:

Street Improvement 0 0 680,000 0 1,700,000 36,770 0 41,310 2,458,080 Gas Tax 0 50,000 20,000 0 3,425,000 587,290 0 1,095,490 5,177,780 Senior Mobility 0 0 0 185,000 0 3,090 0 243,250 431,340 Miscellaneous Grants 0 0 220,960 37,000 130,000 8,170 0 362,580 758,710 Building Homes & Jobs Act 296,190 2,660 27,180 0 0 21,990 0 150 348,170 Disaster Relief 0 0 0 0 0 0 0 0 0
Air Quality Imprvmnt. 0 0 80,000 0 0 0 0 319,380 399,380 Local Cable Infrastructure 0 0 0 0 10,000 0 0 2,048,750 2,058,750 Police Grants 0 0 0 0 0 0 0 239,550 239,550
Local Transit Program Grants 0 0 1,774,790 0 0 66,900 0 491,460 2,333,150 296,190 52,660 2,802,930 222,000 5,265,000 724,210 0 4,841,920 14,204,910 Capital Projects:

Parks Acquis. & Dev. 0 0 0 0 0 22,730 0 9,860 32,590
Local Drainage Fac. 0 0 0 0 0 19,070 0 455,110 474,180
RCFPP 0 0 0 0 0 9,910 0 990,350 1,000,260
Pub. Facilities Const. 0 0 0 0 0 14,610 0 555,190 569,800 Developers Imprvmnt. 0 0 0 0 0 12,200 0 5,225,640 5,237,840 In-Lieu Housing 0 0 5,000 0 0 1,000 0 11,555,300 11,561,300 Low/Mod Income Housing 0 0 75,000 0 0 5,540 0 3,047,200 3,127,740 Reserve 0 0 100,000 0 1,520,000 0 0 8,111,910 9,731,910 0 0 180,000 0 1,520,000 85,060 0 29,950,560 31,735,620
Enterprise:

Water- Operating 5,387,540 15,039,070 4,714,680 3,795,720 0 2,234,110 900,610 529,212 32,600,942 - Depr. Reserve 0 0 1,205,000 0 3,500,000 270,840 0 8,247,401 13,223,241 - Acreage Fee 0 0 0 0 0 16,450 0 284,926 301,376
- Other Agency 0 0 500,000 0 0 14,660 0 281,891 796,551 Sewer- Operating 4,142,510 1,334,200 3,277,560 3,473,520 0 1,725,900 0 238,459 14,192,149 - Depr. Reserve 0 0 350,000 0 950,000 154,980 0 1,931,541 3,386,521 - Conn. Fee 0 0 0 0 0 17,700 0 277 17,977
- Other Agency 0 0 0 0 0 10,310 0 1,993,593 2,003,903
Storm Drain Utility 569,070 11,020 390,980 1,148,750 0 136,190 0 27,510 2,283,520 - Depr. Reserve 0 0 150,000 0 4,750,000 61,790 0 14,970 4,976,760 Solid Waste Mgmt 174,520 18,140 849,400 20,890 0 82,250 0 18,320 1,163,520 Golf - Operating 1,375,950 309,950 702,480 214,270 0 2,502,190 0 712,089 5,816,929 - Depr. Reserve 0 0 0 0 35,000 8,480 0 4,199,260 4,242,740 - Capital Impr. 0 0 0 0 3,000,000 5,470 0 551,221 3,556,691 Clean Ocean 0 0 0 0 0 0 0 0 0
11,649,590 16,712,380 12,140,100 8,653,150 12,235,000 7,241,320 900,610 19,030,670 88,562,820 Internal Service:

Central Services 5,030 65,650 292,800 1,550 0 51,230 34,520 186,560 637,340 Information Technology 1,284,810 1,840 1,295,500 15,900 91,000 240,180 0 377,380 3,306,610 Fleet- Operating 0 630,450 907,170 0 0 94,190 0 333,618 1,965,428 - Replacement 0 0 0 0 871,910 20,400 0 5,371,862 6,264,172 Medical Insurance 0 0 4,850 4,506,650 0 62,840 0 145,300 4,719,640 Worker's Comp. 0 11,100 10,000 636,350 0 50,320 0 1,761,640 2,469,410 General Liability Self Ins. 213,640 2,000 231,300 3,741,000 0 53,010 0 439,570 4,680,520 1,503,480 711,040 2,741,620 8,901,450 962,910 572,170 34,520 8,615,930 24,043,120 Total All Funds $40,029,920 $19,059,960 $70,148,240 $19,445,510 $21,247,910 $16,012,830 $2,498,130 $82,559,894 $271,002,394 All Funds Summary-Expenditures by Category
FY 2027-28
55 65
I
I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General* $88,421,642 $90,110,560 $91,059,370 $88,916,520 $91,662,440 Special Revenue:

Street Improvement 2,235,892 2,300,100 2,300,100 1,849,000 1,849,000 Gas Tax 3,772,326 3,948,060 4,833,340 5,224,690 4,365,750 Senior Mobility 141,692 170,270 170,270 137,960 140,910 Miscellaneous Grants 198,114 405,940 698,580 775,960 425,960 Building Homes & Jobs Act (SB2) 487,814 368,130 368,130 136,220 253,000 Disaster Relief 8,946 0 97,440 0 0
Air Quality Improvement 62,184 335,800 335,800 85,800 85,800 Local Cable Infrastructure 265,651 205,000 205,000 215,000 215,000 Police Grants 210,258 191,000 191,000 0 0
Local Transit Program Grants 312,077 2,414,410 2,414,410 3,668,830 2,881,250 Total Special Revenue 7,694,954 10,338,710 11,614,070 12,093,460 10,216,670 Capital Projects:

Parks Acquisition & Dev. 552,521 53,200 53,200 40,200 28,200 Local Drainage Facilities 207,606 547,500 547,500 47,500 47,500 R C F P P 68,522 20,500 20,500 22,500 20,500
Public Facilities Construction Fee 411,357 60,500 60,500 54,500 52,500 Developers Improvement 356,899 239,900 239,900 240,900 240,900 In-Lieu Housing Fund 277,797 42,800 42,800 42,800 42,800 Low/Moderate Income Housing 134,280 17,500 17,500 25,500 17,500 Capital Improvement 2,248,332 1,554,640 1,554,640 8,385,000 370,000 Total Capital Projects 4,257,314 2,536,540 2,536,540 8,858,900 819,900 Enterprise:

Water - Operating 25,334,134 28,808,880 28,808,880 31,021,012 30,735,720 - Depreciation Reserve 5,992,759 4,772,148 4,772,148 3,580,129 3,470,064 - Acreage Fee Reserve 223,939 3,867,669 3,867,669 22,890 24,047 - Other Agency 878,965 765,443 765,443 691,109 701,919
Sewer - Operating 12,223,331 12,563,556 12,563,556 13,314,795 13,783,248 - Depreciation Reserve 3,956,777 3,515,155 3,515,155 3,170,618 3,186,748 - Connection Fee Reserve 2,371,748 3,038,387 2,068,737 25,022 12,928 - Other Agency 232,901 191,622 191,622 352,935 443,106
Storm Drain - Operating 1,679,839 1,654,460 1,654,460 2,128,050 2,178,050 - Depreciation Reserve 1,383,369 2,493,090 3,493,090 1,594,000 5,499,000 Solid Waste Management 266,747 220,850 220,850 1,069,100 877,560 Golf - Operating 4,170,331 3,632,389 3,632,388 4,158,078 4,138,453 - Depreciation Reserve 380,864 310,850 310,850 279,668 278,212 - Capital Improvement Reserve 106,216 156,661 156,662 1,795,404 1,810,485 Clean Ocean 1,618,144 1,602,070 2,483,130 0 0
Total Enterprise 60,820,064 67,593,230 68,504,640 63,202,810 67,139,540 Internal Service:

Central Services 458,834 443,430 443,430 392,620 392,620 Information Technology 2,563,697 2,530,050 2,530,050 2,917,180 2,912,180 Fleet - Operating 1,496,901 1,574,880 1,574,880 1,566,798 1,563,420 - Replacement Reserve 1,289,860 1,032,030 1,032,030 1,128,992 1,102,370 Medical Insurance 3,928,599 4,193,440 4,193,440 4,394,440 4,493,440 Workers' Compensation 678,181 530,100 530,100 575,100 575,100 General Liability Self Insurance 2,912,102 2,800,700 2,800,700 2,884,730 3,040,700 Total Internal Service 13,328,174 13,104,630 13,104,630 13,859,860 14,079,830 Total All Funds $174,522,148 $183,683,670 $186,819,250 $186,931,550 $183,918,380 * Includes transfers in with Revenue amount
Budget Comparisons By Fund - Revenues
56 66
I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General* $89,777,714 $99,287,350 $98,107,350 $94,359,900 $92,335,110 Special Revenue:

Street Improvement 1,238,783 5,736,250 5,736,250 2,566,770 2,416,770 Gas Tax 3,590,071 8,607,860 8,607,860 7,857,290 4,082,290 Senior Mobility 151,585 246,460 246,460 188,090 188,090 Miscellaneous Grants 226,162 965,590 965,590 556,130 396,130 Building Homes & Jobs Act (SB2) 338,217 367,470 367,470 335,610 348,020 Disaster Relief 418,594 80,000 26,780 0 0
Air Quality Improvement 0 80,000 80,000 80,000 80,000
Local Cable Infrastructure 10,960 95,960 95,960 30,080 10,000 Police Grants 200,000 246,420 246,420 0 0
Local Transit Program Grants 1,382,829 1,501,490 1,501,490 2,582,690 1,841,690 Total Special Revenue 7,557,201 17,927,500 17,874,280 14,196,660 9,362,990 Capital Projects:

Parks Acquisition & Dev. 905,869 1,377,560 816,160 202,730 22,730 Local Drainage Facilities 267,725 2,061,960 2,061,960 277,480 19,070 R C F P P 29,845 360,950 360,950 9,910 9,910
Public Facilities Construction Fee 971,474 348,440 348,440 14,610 14,610 Developers Improvement 1,040,240 11,950 11,950 12,200 12,200 In-Lieu Housing Fund 1,000 6,000 6,000 6,000 6,000
Low/Moderate Income Housing 5,210 35,210 35,210 80,540 80,540 Capital Improvement 2,307,095 7,146,980 8,095,790 5,280,000 1,620,000 Total Capital Projects 5,528,458 11,349,050 11,736,460 5,883,470 1,785,060 Enterprise:

Water - Operating 27,971,766 30,391,420 30,391,420 30,303,110 32,071,730 - Depreciation Reserve 2,379,592 24,272,410 20,501,630 5,875,840 4,975,840 - Acreage Fee Reserve 129,242 6,598,840 6,598,840 16,450 16,450 - Other Agency 1,119,618 4,266,610 4,266,610 514,660 514,660 Sewer - Operating 12,112,098 13,338,440 13,338,440 13,682,820 13,953,690 - Depreciation Reserve 4,777,957 17,773,120 14,778,870 3,104,980 1,454,980 - Connection Fee Reserve 2,208,918 3,264,110 3,264,110 117,700 17,700 - Other Agency 10,700 553,670 553,670 60,310 10,310
Storm Drain - Operating 1,558,617 1,753,160 1,753,160 2,198,040 2,256,010 - Depreciation Reserve 4,846,321 3,071,440 2,853,870 1,615,790 4,961,790 Solid Waste Management 351,044 252,800 252,800 1,185,480 1,145,200 Golf - Operating 4,340,163 3,499,700 3,264,700 5,199,450 5,104,840 - Depreciation Reserve 178,580 172,920 172,920 243,480 43,480 - Capital Improvement Reserve 17,271 900,660 900,660 905,470 3,005,470 Clean Ocean 1,908,747 2,277,590 2,277,590 0 0
Total Enterprise 63,910,634 112,386,890 105,169,290 65,023,580 69,532,150 Internal Service:

Central Services 406,926 482,960 482,960 450,360 450,780 Information Technology 2,270,445 3,790,920 3,790,920 2,827,740 2,929,230 Fleet - Operating 1,265,028 1,500,660 1,500,660 1,590,370 1,631,810 - Replacement Reserve 2,143,113 3,025,550 3,067,130 840,330 892,310 Medical Insurance 3,888,364 4,272,050 4,272,050 4,474,340 4,574,340 Workers' Compensation 630,256 698,810 698,810 661,420 707,770 General Liability Self Insurance 2,988,441 4,038,430 4,038,430 4,329,330 4,240,950 Total Internal Service 13,592,573 17,809,380 17,850,960 15,173,890 15,427,190 Total All Funds $180,366,580 $258,760,170 $250,738,340 $194,637,500 $188,442,500 *Includes transfers out with Expenditure amount
Budget Comparisons By Fund - Expenditures
57 67
I I
58 68
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Fund Balances $164,548,486 $158,704,054 $158,704,054 $94,789,964 $87,084,014 Property Taxes 46,916,120 48,186,070 48,186,070 50,149,680 52,119,340 Transient Occupancy Tax 3,142,121 3,550,000 3,550,000 3,300,000 3,400,000 Sales Tax 12,771,872 13,209,500 13,209,500 12,923,530 13,210,470 Franchise Fees 2,556,440 2,585,000 2,585,000 2,512,000 2,512,000 Business License Tax 1,114,634 1,215,000 1,215,000 1,305,000 1,355,000 Total Taxes 66,501,187 68,745,570 68,745,570 70,190,210 72,596,810 Construction Permits 1,465,932 1,283,730 1,283,730 1,329,240 1,348,340 Developer Fees 253,411 179,650 179,650 180,650 180,650
Alarm Permits 72,000 70,000 70,000 70,000 70,000
Miscellaneous Permits & Fees 248,251 124,140 124,140 138,640 138,640 Total Permit & Fees 2,039,594 1,657,520 1,657,520 1,718,530 1,737,630 Grants 2,148,539 9,357,620 10,879,220 6,189,550 6,270,700 Motor Vehicle Tax 101,072 70,000 70,000 80,000 80,000
Gas Tax Allocations 3,395,748 3,490,220 3,490,220 3,673,690 3,673,750 Subventions 266,008 285,000 285,000 279,000 279,000
Measure M Apportionment 1,338,617 1,509,000 1,509,000 1,509,000 1,509,000 Miscellaneous 1,338,480 2,182,070 2,182,070 1,729,790 3,459,530 Total Intergovernmental 8,588,464 16,893,910 18,415,510 13,461,030 15,271,980 Development Permits & Fees 118,374 106,700 106,700 106,700 106,700 Plan Check Fees 877,047 795,910 795,910 901,900 909,840 General Service Charges 178,820 187,620 187,620 187,620 187,620 Imaging of Documents 56,688 53,840 53,840 51,000 51,000 Weed Assessments 3,613 4,000 4,000 4,000 4,000
Abatement Reimbursements 5,614 130,150 130,150 5,300 5,300 Ambulance Service Charges 2,868,902 2,826,900 2,826,900 2,926,900 2,927,000 Public Safety Service Charges 55 600 600 250 250
Marine Safety Program Fees 278,254 245,400 245,400 298,110 305,130 Parking Meters & Permits 1,420,807 1,295,000 1,295,000 1,390,000 1,410,000 Solid Waste Service Charges 184,467 161,000 161,000 161,000 161,000 Storm Drain Service Charges 1,390,786 1,505,000 1,505,000 1,513,250 1,521,710 Sewer Service Charges 11,113,769 11,619,000 11,619,000 12,150,000 12,663,000 Water Service Charges 23,892,216 27,169,440 27,169,440 26,516,940 29,183,550 Inspection Fees 115,346 85,500 85,500 100,500 100,500
Recreation Program Fees 2,127,881 2,106,100 2,106,100 2,381,900 2,399,470 Golf Fees 3,175,123 2,651,200 2,651,200 3,242,870 3,242,870 Urban Runoff Mgmt Fees 119 0 0 0 0
Total Service Charges 47,807,881 50,943,360 50,943,360 51,938,240 55,178,940 Parking Violations 537,706 640,000 640,000 645,000 650,000 Vehicle Code & Court Fines 228,293 242,500 242,500 210,000 215,500 Other Fines 62,067 54,300 54,300 83,950 84,000
Total Fines 828,066 936,800 936,800 938,950 949,500
Investment Earnings & Interest 7,402,586 2,868,650 2,868,650 3,065,950 3,017,950 Rents & Concessions 4,191,807 4,298,550 4,298,550 4,321,850 4,637,020 Total Interest & Rents 11,594,393 7,167,200 7,167,200 7,387,800 7,654,970 Miscellaneous Income 1,844,082 3,549,250 4,184,070 4,215,550 1,395,750 Depreciation Funding 9,240,689 8,954,700 8,954,700 7,964,000 7,964,000 Sales of Assets 79,248 0 0 0 0
Internal Service Fund Charges 8,849,700 9,224,990 9,224,990 8,976,360 8,976,360 Premiums & Reimbursements 6,989,625 7,178,640 8,178,640 7,512,470 7,768,440 Total Other Rev. & Financing Sources 27,003,344 28,907,580 30,542,400 28,668,380 26,104,550 Transfers from Other Funds 10,159,219 8,431,730 8,410,890 12,628,410 4,424,000 Total Revenues/Sources* $174,522,148 $183,683,670 $186,819,250 $186,931,550 $183,918,380 *excluding fund balances
All Fund Revenues Summary
59 69
I
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Taxes
Current Year Secured Taxes $34,595,089 $36,118,000 $36,118,000 $37,229,990 $38,719,190 Current Year Unsecured Taxes 1,098,844 986,000 986,000 1,271,370 1,325,250 Supp. Roll Property Taxes 823,795 590,000 590,000 590,000 590,000 ERAF Property Taxes 9,395,250 9,718,400 9,718,400 10,335,430 10,773,430 Prior Year Secured & Unsecured 260,556 190,000 190,000 200,000 200,000 Property Tax Admin. Charge (260,534) (204,200) (204,200) (272,410) (283,830) Transient Occupancy Tax 2,356,989 2,500,000 2,500,000 2,400,000 2,500,000 Transient Occupancy Tax Vacation Rental 785,132 1,050,000 1,050,000 900,000 900,000 General Sales Tax 12,183,102 12,585,000 12,585,000 12,313,490 12,600,430 P.S. Sales Tax Augmentation 588,770 624,500 624,500 610,040 610,040 Property Transfer Tax 896,222 720,000 720,000 720,000 720,000 Penalty & Interest - Delqnt. Prop. Tax 106,566 67,500 67,500 75,000 75,000 Penalty & Interest - Delqnt. Prop. Assmt. 316 370 370 300 300 Assessments Prior Year 16 0 0 0 0
San Diego Gas & Electric 865,878 840,000 840,000 850,000 850,000 Southern California Gas 170,726 200,000 200,000 200,000 200,000 Cox Communications 720,051 790,000 790,000 700,000 700,000 CR&R 581,159 535,000 535,000 550,000 550,000
Other Franchise Fees 206,947 200,000 200,000 192,000 192,000 Parimutual Taxes 11,679 20,000 20,000 20,000 20,000
Business License Tax 1,000,399 1,110,000 1,110,000 1,200,000 1,250,000 Home Occupation Permit 114,235 105,000 105,000 105,000 105,000 Total Taxes 66,501,187 68,745,570 68,745,570 70,190,210 72,596,810 Permit & Fees
Building Permits 799,503 649,950 649,950 682,450 696,100 Disability Access/Educ Fee 20,869 20,500 20,500 20,500 20,500 Electrical Permits 274,422 336,400 336,400 336,400 336,400 Mechanical Permits 118,785 96,520 96,520 101,350 103,400 Plumbing Permits 234,409 164,220 164,220 172,400 175,800 Grading Permits 17,944 16,140 16,140 16,140 16,140
Sewer Permits 0 1,000 1,000 500 500
Bridge Maintenance Contribution 129,258 128,450 128,450 129,450 129,450 STLU Permit Fee 81,064 17,640 17,640 17,640 17,640
Street Encroachment Permits 152,887 95,000 95,000 110,000 110,000 Trash Bin Permits 9,089 9,000 9,000 9,000 9,000
Alarm Permits 72,000 70,000 70,000 70,000 70,000
Park Fees 57,939 20,000 20,000 20,000 20,000
Public Safety Construction Fees 52,996 20,000 20,000 20,000 20,000 Civic Center Const Fund Fees (1,857) 4,000 4,000 4,000 4,000 Storm Drain Fees - Other Areas 475 500 500 500 500
Storm Drain Fees - Segunda Des. 2,250 0 0 0 0
RCFPP Impact Fees 5,211 1,000 1,000 1,000 1,000
Water Acreage Fees 12,350 6,700 6,700 6,700 6,700
Miscellaneous Permits 0 500 500 500 500
Total Permit & Fees 2,039,594 1,657,520 1,657,520 1,718,530 1,737,630 All Fund Revenues By Line Item
60 70
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Revenues By Line Item
Intergovernmental
EPA Grant 0 0 0 0 959,000
CDBG Home Rehab 0 150,960 150,960 150,960 150,960
Public Fac/Infrastructure Grant 78,235 125,000 417,640 500,000 150,000 Commercial Rehab Grant 0 10,000 10,000 10,000 10,000
Public Services Grant 45,998 47,130 47,130 45,000 45,000 CDBG Administration Grant 73,423 62,850 62,850 60,000 60,000 Other Federal Grants 4,365 176,000 176,000 850,000 0
Mandated Cost Reimbursement 73,896 65,000 65,000 65,000 65,000 S.O.N.G.S. Grant 170,757 188,430 188,430 188,430 188,430 Coastal Conservatory Grant 0 1,719,000 1,719,000 0 0
Other State Grants 955,975 3,054,070 3,054,070 16,150 766,150 State Planning Grant 485,410 365,830 365,830 124,220 0
Motor Vehicle Tax 101,072 70,000 70,000 80,000 80,000
Vehicle Pollution Reduction Fees 61,515 84,000 84,000 84,000 84,000 2031 Gas Tax Allocations 1,587,659 1,658,000 1,658,000 1,798,000 1,798,000 2106 Gas Tax Allocation 261,605 260,120 260,120 272,190 272,190 Motor Vehicle Fuel Tax 2103 611,477 605,660 605,660 626,700 626,700 2105 Gas Tax Allocation 398,659 410,940 410,940 419,000 419,060 2107 Gas Tax Allocation 528,848 548,000 548,000 550,300 550,300 2107.5 Gas Tax Allocation 7,500 7,500 7,500 7,500 7,500 Homeowners Exempt. Subvention 130,597 136,000 136,000 130,000 130,000 State COPS Grant 194,664 185,000 185,000 200,000 201,000 OCTA Senior Transportation 105,296 120,570 120,570 106,960 108,910 Trolley Transit Program 28,671 1,461,990 1,461,990 3,168,830 2,381,250 Other County Grants 5,745 1,690,790 2,919,750 769,000 1,250,000 Measure M/M2 Turnback App. 1,338,617 1,509,000 1,509,000 1,509,000 1,509,000 Other Governmental Revenues 191,249 0 0 550,590 2,250,000 MWD Reclaimed Water Credit 166,475 169,000 169,000 169,000 169,000 SMWD Water Recycled Water Charges 980,756 2,013,070 2,013,070 1,010,200 1,040,530 Total Intergovernmental 8,588,464 16,893,910 18,415,510 13,461,030 15,271,980 Service Charges
Const & Demo Admin Fees 33,300 30,000 30,000 30,000 30,000 Business License Processing Fee 46,787 45,000 45,000 45,000 45,000 Building Plan Check Fees 623,380 520,910 520,910 616,900 624,840 Planning Plan Check Fees 60,185 70,000 70,000 70,000 70,000 Transportation Permits 1,248 1,200 1,200 1,200 1,200
Improvement Plan Check Fees 34,343 30,000 30,000 30,000 30,000 Landscape Plan Check Fees 26,833 1,500 1,500 1,500 1,500 SFR Plan Check Fees 60,797 50,000 50,000 60,000 60,000
Reproduction of Documents 1,423 1,400 1,400 1,400 1,400 Imaging of Documents 56,688 53,840 53,840 51,000 51,000 Map Sales 9 20 20 20 20
Bad Check Service Charges 10,665 5,000 5,000 5,000 5,000 Other Planning Service Fees 12,793 8,000 8,000 8,000 8,000 Planning - CC Applications 11,961 5,500 5,500 5,500 5,500 Planning - PC Applications 13,261 77,000 77,000 77,000 77,000 Planning - ZA Applications 8,864 16,000 16,000 16,000 16,000 Planning - Admin Applications 37,423 25,000 25,000 25,000 25,000 Traffic Model Fees 0 700 700 700 700
Traffic Review Fees 0 500 500 500 500
General Plan Update Fees 16,386 18,000 18,000 18,000 18,000 61 71
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Revenues By Line Item
Late Payment Charges 0 200,000 200,000 200,000 200,000
Retiree Premiums 165,475 178,000 178,000 178,000 178,000 Cobra Premiums 0 2,000 2,000 2,000 2,000
Weed Assessments - Current Year 3,613 3,000 3,000 3,000 3,000 Weed Assessments - Prior Year 0 1,000 1,000 1,000 1,000 Nuisance Abatement Reimb. 5,604 130,000 130,000 5,000 5,000 Sign Storage Fee 10 150 150 300 300
Ambulance Service Charges 2,839,202 2,800,000 2,800,000 2,900,000 2,900,000 Ambulance Subscription Fees 29,700 26,900 26,900 26,900 27,000 Special Lifeguard Services 7,972 6,500 6,500 6,440 6,750 Junior Lifeguard Services 189,585 207,900 207,900 222,500 222,500 Special Beach Events Fees 68,684 21,000 21,000 53,670 60,380 Film Permit Fees 12,013 10,000 10,000 15,500 15,500
Visa Letter Service 0 100 100 0 0
Police Duplication Fees 0 250 250 0 0
Other Police Dept. Service Charges 55 250 250 250 250
Parking Meters 1,201,690 1,085,000 1,085,000 1,180,000 1,200,000 Parking Permits 219,117 210,000 210,000 210,000 210,000 Const & Demo Recycle Fee - Forfeited 141,250 70,000 70,000 70,000 70,000 Commercial Recycling Charges 43,217 91,000 91,000 91,000 91,000 Sewer Commodity Fees 4,881,842 4,999,300 4,999,300 5,200,000 5,400,000 Sewer Base Fees 6,231,927 6,619,700 6,619,700 6,950,000 7,263,000 Effluent Water Sales 1,245,843 1,599,830 1,599,830 1,645,940 1,703,550 Public Works Inspection Fees 0 1,500 1,500 1,500 1,500
Engineering Plan Review 9,108 4,500 4,500 4,500 4,500
Construction Inspection Fees 102,957 75,000 75,000 90,000 90,000 Engr. & Geotech. Reimbursements 5,470 5,000 5,000 5,000 5,000 Other Engineering Service Fees 6,919 4,000 4,000 4,000 4,000 OHBC Pool Programs & Admin Fees 9,705 8,000 8,000 22,690 25,930 SCAC Pool Programs & Admin Fees 166,675 150,000 150,000 382,500 395,000 OHBC Contract Pool Class Fees 74,753 39,860 39,860 72,420 72,420 OHBC Contract Class Fees 51,344 37,170 37,170 74,340 74,340 SCAC Contract Pool Class Fees 309,913 310,000 310,000 326,830 326,830 Comm. Center Contract Class Fees 264,063 285,000 285,000 271,170 271,170 Offsite Contract Class Fees 27,500 21,070 21,070 21,070 21,070 Recreation Sports Fees 175,208 150,000 150,000 162,270 162,270 VHSP Contract Land Class Fees 167,133 150,000 150,000 159,890 159,890 Park Class Fees 321,942 330,000 330,000 330,000 331,820 Beach Class Fees 382,102 465,000 465,000 378,650 378,650 Street Banner Fees 9,567 13,000 13,000 11,370 11,380
Processing Fee 4,931 3,000 3,000 4,820 4,820
Recreation Special Events 45,049 28,000 28,000 44,420 44,420 Fun on the Run Program Revenues 2,415 1,000 1,000 4,460 4,460 After School Programming 115,581 115,000 115,000 115,000 115,000 Greens Fees 3,039,096 2,550,000 2,550,000 3,119,910 3,119,910 Registration Card/Ticket Sales 110,796 90,200 90,200 105,000 105,000 Golf Tournament Surcharge Fee 6,311 4,000 4,000 5,860 5,860 Golf Cart Registration 18,920 7,000 7,000 12,100 12,100 Metered Water Sales 15,138,878 17,128,630 17,128,630 15,700,000 17,892,000 Fixed Water Service Charges 7,193,673 7,958,980 7,958,980 8,670,000 9,087,000 Water Conservation Surcharge 0 0 0 0 0
Hydrant Meter Water Sales 91,588 25,000 25,000 30,000 30,000 62 72
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Revenues By Line Item
Water Application Fee 54,360 65,000 65,000 60,000 60,000 Backflow Testing Admin Fees 46,912 46,000 46,000 95,000 95,000 Hydrant Meter Rentals 32,862 26,000 26,000 30,000 30,000 Turn On/Reconnection Fees 3,735 20,000 20,000 10,000 10,000 Water Posting Fees 6,575 69,000 69,000 30,000 30,000
Meter Installation Fees 77,790 30,000 30,000 45,000 45,000 Exemption Application Fees 0 1,000 1,000 1,000 1,000
Storm Drain Service Charges 1,179,281 1,175,000 1,175,000 1,175,000 1,175,000 Urban Runoff Mgmt. Fees 119 0 0 0 0
Street Sweeping Fee 211,505 330,000 330,000 338,250 346,710 Total Service Charges 47,807,881 50,943,360 50,943,360 51,938,240 55,178,940 Fines
Parking Violations 537,706 640,000 640,000 645,000 650,000 Vehicle Code Fines 204,192 237,170 237,170 205,000 210,000 Court Fines 24,101 5,330 5,330 5,000 5,500
Trash Can Violations 0 200 200 200 200
Administrative Citations 60,800 52,000 52,000 82,000 82,000 Admin Citation Enforcement 1,267 2,100 2,100 1,750 1,800 Total Fines 828,066 936,800 936,800 938,950 949,500
Interest and Rents
Investment Earnings 4,327,476 2,868,650 2,868,650 3,040,950 2,992,950 Unrealized Gain/Loss on Investments 2,737,762 0 0 0 0
Interest Earnings - Other 337,348 0 0 25,000 25,000
Communication Site Leases 620,831 670,520 670,520 664,630 697,330 Beach Club Rent 437 0 0 251,800 515,590
Community Center Rent 63,706 57,320 57,320 94,040 101,870 SCAC Building Rentals 7,799 7,000 7,000 15,130 15,130
SCAC Pool Rental 156,106 127,000 127,000 162,300 162,300 OHBC Pool Rentals 4,320 5,000 5,000 6,280 5,320
Senior Center Rentals 9,187 5,000 5,000 9,170 9,170
Sports Field Rentals 740,949 510,000 510,000 673,030 710,420 Rental of City Property 85,532 100,000 100,000 112,000 118,000 Park Rentals 55,995 52,000 52,000 99,460 109,400
Steed Park Concession 100,887 300,000 300,000 121,880 121,880 OHBC - Concession 288,336 310,000 310,000 75,000 0
Pier Restaurant 780,498 879,490 879,490 795,000 816,000 Negocio (1030) Lease 116,463 196,800 196,800 202,240 208,300 "T" Street Concession 74,176 47,000 47,000 71,000 76,000 Pier Concession Bait & Tackle 12,297 16,100 16,100 19,200 19,200 Golf Pro Shop 487,772 542,000 542,000 466,280 466,280
Golf Restaurant 393,486 400,000 400,000 400,000 400,000 Fabricante Rental 33,000 30,000 30,000 36,000 36,000
1100 N. ECR Bldg Lease 33,516 43,320 43,320 47,410 48,830 Lease Adjustment 126,514 0 0 0 0
Total Interest and Rents 11,594,393 7,167,200 7,167,200 7,387,800 7,654,970 63 73
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Revenues By Line Item
Other Revenues & Financing Sources
Depreciation Funding 6,438,689 6,152,700 6,152,700 6,010,000 6,010,000 Asset Model Funding 1,848,000 1,848,000 1,848,000 1,000,000 1,000,000 Joint Agency Reserve Funding 954,000 954,000 954,000 954,000 954,000 Sale of General Fixed Assets 79,248 0 0 0 0
Transfer from Misc. Grants Fund 10,000 10,000 10,000 8,000 8,000 Transfer from General Fund 1,867,454 1,400,670 1,400,670 6,523,000 1,777,000 Transfer from 2107 Gas Tax 579,132 510,000 510,000 550,000 550,000 Transfer from Local Drainage 0 0 0 258,410 0
Transfer from Water Fund 1,125,000 1,825,000 1,825,000 3,225,000 225,000 Transfer from Sewer Fund 2,444,650 2,644,650 1,675,000 75,000 75,000 Transfer from Golf Course Fund 39,004 35,000 35,000 1,789,000 1,789,000 Transfer from Storm Drain Fund 500,000 450,000 450,000 0 0 Transfer from Other Funds 3,593,979 1,556,410 2,505,220 200,000 0 Postage Charges 85,180 85,180 85,180 81,620 81,620
Duplicating Charges 68,760 68,760 68,760 74,400 74,400
EDMS Charges to Funds 35,690 35,690 35,690 0 0
Fleet Operating Charges 1,492,730 1,569,840 1,569,840 1,554,550 1,554,550 Fleet Replacement Charges 647,690 936,870 936,870 991,040 991,040 Data Processing Charges 2,490,050 2,490,050 2,490,050 2,887,180 2,887,180 Communication Charges 190,060 190,060 190,060 226,700 226,700 Capital Equipment Replacement 229,100 229,100 229,100 0 0 Park Asset Replacement 220,000 230,000 230,000 0 0
Facilities Maintenance Replacement 346,840 346,840 346,840 0 0 General Fund O/H Charges 3,043,600 3,042,600 3,042,600 3,160,870 3,160,870 Employer Premiums 3,255,369 3,180,200 3,180,200 3,314,030 3,470,000 Employee Premium 3,731,721 3,998,440 3,998,440 4,198,440 4,298,440 Insurance Reimbursements 2,535 0 1,000,000 0 0
Contributions from Developers 29,395 28,700 28,700 30,000 30,000 Other Donations 377,000 0 0 40,000 0
Work Orders 0 12,000 12,000 4,000 4,000
Cash Over or Short (3,682) 1,000 1,000 1,000 1,000
Home Rehab Program Revenue 4 10,000 10,000 10,000 10,000 Miscellaneous Income 22,695 18,500 18,500 20,000 20,000 Settlement (OPIOID) Revenue 110 0 0 0 0
EV Charging Electric Reimbursements 41,362 13,000 13,000 13,000 13,000 Miscellaneous Reimbursement 312,688 2,024,550 2,659,370 2,774,550 24,550 Community Park Maint. Reimb. 40,822 41,500 41,500 42,330 43,200 Other Agency Revenue 1,023,688 1,400,000 1,400,000 1,280,670 1,250,000 Total Other Rev. & Financing Sources 37,162,563 37,339,310 38,953,290 41,296,790 30,528,550 Total: $174,522,148 $183,683,670 $186,819,250 $186,931,550 $183,918,380 64 74
All Fund Revenue Assumptions
General Fund:

General Fund revenues are based on a combination of factors including analysis of historical revenue receipts, anticipated changes in the local economic environment, projected City growth through development and anticipated changes in revenue receipts. Total budgeted General Fund revenues (excluding transfers in) are $88.3 million for FY 2026-27 and $91.1 million in FY 2027-28.

Total taxes increase by 2.1% in FY 2026-27 and another 3.4% in FY 2027-28. Property taxes, which account for 56% of General Fund revenues, increase to $50.1 million in FY 2026-27 and $52.1 million the following year. Property tax growth is a 4.1% increase in FY 2026-27 and an additional 3.9% in FY 2027-28. In FY 2026-27, Sales Tax revenues and Transient Occupancy Taxes are budgeted to decrease initially, however recover towards previous levels in FY 2027-

28. Intergovernmental revenues decrease mostly due to one-time grants in FY 2025-26. Service charges increase due to recent recreation fee changes and annual adjustments to the ambulance fee schedule. Total fines are budgeted to remain relatively flat during the next two years. Additional information on General Fund revenues is in the General Fund Revenues section of the budget.

Special Revenue Funds:

The major revenues received in Special Revenue Funds include Federal and State grants, shared revenues from the State of California, the County of Orange and other governmental pass-through amounts. The assumptions used for the FY 2026-27 and 2027-28 major revenues are described below:

Federal, State and County level Grants:

Community Development Block Grant (CDBG) – Federal Housing and Urban Development grants are received by the City for projects related to community programs and public improvements. A total of $775,960 and $425,960 is budgeted in FY 2026-27 and FY 2027-28, with most of the amount to improve infrastructure within the CDBG benefit area, a delay in reimbursement increases the budget initially in FY 2026-27. Grant funding for home rehabilitation, infrastructure and public services remains flat for the FY 2026-27 & 2027-28 budgets.

Building Homes and Jobs Act – This state level funding is reaching the end of its initial 5-year grant period award by the State. The final grant amount of $124,220 is budgeted in FY 2026-27. A new award has not yet been received by the City and an anticipated transfer is budgeted to fund this program until additional funding is obligated.

Orange County Transportation Agency transit grants – This county level funding is received in the Local Transit Program and the Senior Mobility Funds. The funding is generated mostly from a regional sales tax measure and provides funding for transit related activity. The senior transportation funding is received and budgeted annually, with $106,960 and $108,910 in the Senior Mobility Fund. Additional amounts are received for trolley, rideshare, and other support which is in the Local Transit fund. Reimbursement of past activity has been slow and the budget includes $3.2 million in FY 2026-27, which includes some delayed receipts, and $2.4 million in FY 2027-28. The City transfers funds from the General Fund to provide matching funds on these activities.

Shared Revenue:

Gas Tax Allocations (sections 2105, 2106, 2107, 2107.5, 2031) – The State of California Highway Users Tax is a flat amount per gallon tax on fuel. Taxes are allocated to the City based on population. For fiscal year 2026-27, the City anticipated gas tax allocations of $419,000 (2105), $272,190 (2106), $550,300 (2107) and $7,500 (2107.5) based on the State’s estimates. The City anticipates $626,700 from the State for (2103) in FY 2024-25 based on the most recent State’s estimates. Budgets for the above revenues increase slightly in FY 2025-26 and from the FY 2024-25 actual amounts. The Road Maintenance and Rehabilitation (2031) apportionment from the State is anticipated to be $1.8 million in FY 2026-27 and in FY 2027-28.
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All Fund Revenue Assumptions
Measure M – A county-wide half-cent sales tax, Measure M2, was approved by the voters for improvements to the transportation system. The “local fair share program funds” apportionment is based on local sales tax generated (25%), population (50%) and miles of major regional streets in the City (25%). The City’s Measure M2 apportionment in the Street Improvement Fund are budgeted based on County estimates of $1.5 million for both FY 2026-27 and 2027-28.

Pollution Subventions – The South Coast Air Quality Management levies a fee on motor vehicles registered within the District. Forty percent of the fees collected are distributed to cities in the district that adopted mobile sources air pollution reduction ordinances. The City’s share for each year is expected to amount to $84,000 and is based on historical receipts. The City uses AQMD fees for traffic calming improvement and other pollution reduction activities.

Local Cable Infrastructure – The State levies a 1% fee on all local cable companies for a video service. These fees are governed by the State of California “Digital Infrastructure and Video Competition Act” (DIVCA), set forth as Public Utilities Code Section 5800. The City anticipates receiving $185,000 in each fiscal year. These fees are restricted for capital costs for public, educational, or government access facilities.

Assessments:

Street Improvement Assessments – The City of San Clemente’s Street Improvement Program was funded by property assessments. In FY 2011-12, the assessment district expired and no assessment revenues are budgeted. The City Council, as part of the implementation of the original assessment program, initiated an annual General Fund transfer to support streets that continues through FY 2025-26, however this transfer was paused in FY 2026-27.

Capital Projects Funds:

The major revenues received in Capital Project Funds are from developer fees. The fees are based upon the impact of new development on the City’s existing infrastructure and are set aside for construction or rehabilitation of facilities or infrastructure.

Parks Acquisition and Development Fund:

A total of $20,000 in park fees is anticipated in FY 2026-27 and FY 2027-28 from infill within the City.

Regional Circulation Financing & Phasing Program (RCFPP):

RCFPP fees are collected to mitigate the traffic impact from new development projects on existing arterials. New developer fees of $1,000 are anticipated in FY 2026-27 and FY 2027-28 related mostly to infill.

Public Facilities Construction Fee Fund:

Fees are collected for Public Safety facilities construction and Civic Center construction. Public Facilities fees of $24,000 are anticipated to be received in FY 2026-27 and in FY 2027-28. Fees for the Public Safety Construction fee and Civic Center fee are being received from a variety of infill developments and based on square footage.

Developers Improvement Fund:

This fund collects amounts based on agreements entered into with developers. During FY 2026-27 and 2027-28 no new agreements are anticipated, however the City continues to receive annual amounts under the Talega and Sea Summit developments. Bridge Maintenance revenues of $129,450 are collected to fund future bridge maintenance and repairs in the Marblehead and Talega development areas. Bridge fees are based on development and started in FY 2004-2005 (Talega) and in FY 2016-17 (Sea Summit). Other development fees received in this fund and will be held based on the applicable development agreement for the uses identified in the agreement. 66 76
All Fund Revenue Assumptions
Enterprise Funds:

The major revenues received in Enterprise Funds are from user fees. For Utilities, the fees are based upon the cost to provide the services and are adjusted based on projections of anticipated future costs. For Golf, fees are based upon comparisons with golf courses within the area and the cost to operate the course.

Water Fund:

A total of $26.7 million is included in the Water Operating Fund for fixed water charges, metered water sales and penalties for FY 2026-27, and $29.4 million is included for FY 2027-28. The water service charge is based on the size of the water meter. Metered water charges are based upon actual consumption of water, which is based on a flat rate. One unit of water equals 748 gallons of water. A Cost-of-Service Study was completed and implemented in FY 2025-26 to address rates and operational equity. Effluent water sales revenue budget is for $1.7 million for each fiscal year. The Water Operating Fund contributes between $2-$3 million annually to the Water depreciation reserve for infrastructure replacement and $696,000 to the depreciation reserve for joint regionally shared infrastructure.

Sewer Fund:

Sewer service charges are budgeted for $12.2 million for FY 2026-27 and $12.7 for FY 2027-28. Per an agreement, the Santa Margarita Water District is contributing about $1 million annually towards wastewater treatment services and recycled water in FY 2026-27 and in FY 2027-28. Sewer service charges are a fixed monthly rate based on water consumption during the wet winter months usage levels. The fixed rate is based on meter size. In FY 2023-24, a Costof-Service Study was completed and fees are due to be reviewed during the upcoming two-year budget. The Sewer Operating Fund is contributing $3.2 million annually to the Sewer depreciation reserve and $168,000 annually to the depreciation reserve for joint regionally shared infrastructure.

Storm Drain Fund:

Storm Drain fees are charged to all property owners for the maintenance, rehabilitation and construction of the City’s drainage system. A flat rate is charged per month to all residential properties based upon the type of the dwelling unit (i.e. single family, multi-family, etc.). Non-residential and vacant properties are charged a flat rate based upon acreage. Storm drain fees are anticipated to amount to $1.18 million in both FY 2026-27 and FY 2027-28.

Golf Fund:

The Golf Course charges a tiered rate for resident/non-resident, weekday/weekend and seniors. A total of $3.1 million in golf fees and $122,960 in registration fees are budgeted in FY 2026-27 and FY 2027-28. Estimates are based upon an anticipated 80,000 rounds per year. Revenue in the amount of $866,000 is also anticipated to be received from the concession operator and golf shop pro activities in each year.

Solid Waste Management Fund:

For both FY 2026-27 and FY 2027-28, a total of $207,150 in revenue is budgeted in the Solid Waste Fund from commercial recycling charges ($161,000), administrative fees ($30,000), and a State recycling grant ($16,150).

Commercial recycling fees are charged to commercial facilities and are used to promote recycling efforts. The fees are based on the size of the waste container. Additionally, $319,200 from parking violations and other fines annually and street sweeping fees budgeted for $338,250 FY 2026-27 and $346,710 in FY 2027-28. These fees support the street sweeping program in the City.

Clean Ocean Fund:

The Clean Ocean fee was a local voter approved fee to provide funding to implement the City’s urban runoff management plan and is currently expired. The City is closing this fund since there is no revenue source. 67 77
All Fund Revenue Assumptions
Internal Service Funds:

Internal Service Funds receive revenues from City departments for goods and services provided by another City department on a cost reimbursement basis. Charges are established annually and are based upon actual use of the goods or services. Replacement charges to the Fleet Replacement Reserve are allocated annually over the life of the vehicle or equipment and based upon the anticipated future cost of replacement. 68 78
Expenditures Actual Amended Bud. Adjusted Budget Budget By Program FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 City Council
Legislative Program 105,260 127,630 127,630 172,930 177,120 Cable Programing 26,851 33,850 33,850 27,500 27,560
Total $132,111 $161,480 $161,480 $200,430 $204,680
City Manager 992,050 1,103,200 1,103,200 1,120,910 1,160,640 Economic Development 241,439 141,230 141,230 0 0
City General
Social Services 16,851 20,900 20,900 20,270 20,270
City Administration 5,882,536 7,087,120 5,907,120 10,673,060 6,167,660 Total 5,899,387 7,108,020 5,928,020 10,693,330 6,187,930 City Clerk
Council Related Services 837,116 841,970 841,970 864,080 933,980 Elections 155,175 24,250 24,250 149,590 14,330
Total 992,291 866,220 866,220 1,013,670 948,310
Finance & Admin. Services
F&AS - Administration 471,406 489,820 489,820 609,680 645,190 Cash Management/Treasury 105,312 103,380 103,380 119,080 119,080 Total 576,718 593,200 593,200 728,760 764,270
Finance
Financial Services 1,182,896 1,419,960 1,419,960 1,613,960 1,685,250 Utility Billing & Cashering 933,961 1,032,940 1,032,940 1,057,230 1,095,170 Business Licensing 163,999 265,520 265,520 234,880 241,660 Purchasing 148,834 164,770 164,770 35,450 35,450
Total 2,429,690 2,883,190 2,883,190 2,941,520 3,057,530 Human Resources
Human Resource Administration 774,124 809,260 809,260 817,760 867,110 Labor Relations 92,047 35,400 35,400 32,850 32,850
Employee Training 4,097 1,750 1,750 6,700 6,950
Total 870,268 846,410 846,410 857,310 906,910
Police Services
Police Contract Services 22,513,439 23,803,290 23,803,290 24,795,560 25,484,030 Local Police Services 43,833 40,090 40,090 45,940 46,690 RSVP Support Services 9,785 14,100 14,100 16,300 16,800 Total 22,567,057 23,857,480 23,857,480 24,857,800 25,547,520 Fire Services
Fire Contract Services 12,590,806 13,120,950 13,120,950 13,015,300 13,453,550 Ambulance Services 2,206,551 2,209,770 2,209,770 2,432,580 2,565,710 Total 14,797,357 15,330,720 15,330,720 15,447,880 16,019,260 Community Development
Administration 928,363 1,362,300 1,362,300 1,089,220 1,137,770 Emergency Planning 144,531 254,060 254,060 223,940 234,050 Total 1,072,894 1,616,360 1,616,360 1,313,160 1,371,820 Building
Administration 1,362,704 1,739,840 1,739,840 1,788,800 1,861,780 Inspection 408,412 626,500 626,500 575,040 597,990
Total 1,771,116 2,366,340 2,366,340 2,363,840 2,459,770 All Programs Expenditure Summary
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Expenditures Actual Amended Bud. Adjusted Budget Budget By Program FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Programs Expenditure Summary
Planning
Current Planning 1,875,703 3,569,160 3,569,160 1,781,270 1,860,220 Commissions, Boards & Comm. 18,972 37,730 37,730 29,140 29,140 Planning Administration 384,896 518,900 518,900 452,890 478,430 Total 2,279,571 4,125,790 4,125,790 2,263,300 2,367,790 Code Compliance
Code Compliance 1,170,975 1,408,410 1,408,410 1,299,600 1,347,070 Weed Abatement 142,600 396,060 396,060 256,060 256,060
Park Ranger 622,875 770,120 770,120 760,560 803,140
Total 1,936,450 2,574,590 2,574,590 2,316,220 2,406,270 Public Works Admin.

Public Works Admin. 1,906,036 2,974,190 2,974,190 923,350 960,340 Total 1,906,036 2,974,190 2,974,190 923,350 960,340
Engineering
Development Engineering 616,139 678,380 678,380 723,250 743,920 Inspection 426,545 438,300 438,300 462,800 478,660
Traffic 604,775 617,310 617,310 647,860 675,980
Design and General Engineering 260,349 168,250 168,250 283,500 350,420 Streets Engineering 678,124 788,070 788,070 848,020 891,430 Major Street Maintenance 648,085 1,296,230 1,296,230 963,470 963,470 Total 3,234,017 3,986,540 3,986,540 3,928,900 4,103,880 Maintenance Services
Traffic Signals 1,297,211 1,261,150 1,261,150 1,190,150 1,227,580 Traffic Maintenance 239,100 511,470 511,470 415,390 427,860 Maintenance Services Admin. 944,531 999,320 999,320 1,026,130 1,067,790 Street Maintenance & Repair 791,586 922,780 922,780 918,840 947,410 Senior Citizen Facility 54,294 85,850 85,850 54,170 55,940 Parking Maintenance 226,974 226,760 226,760 231,150 232,230 Facilities Maintenance 2,727,814 4,388,140 4,388,140 2,684,270 2,754,440 Street Lighting 672,046 579,490 579,490 613,440 620,350 Total 6,953,556 8,974,960 8,974,960 7,133,540 7,333,600 Park/Beach Maintenance
Trail Maintenance 278,877 365,660 365,660 273,950 276,040 Street Median & Trees 498,167 914,310 914,310 417,890 428,460 Streetscapes 905,949 1,031,480 1,031,480 890,160 892,530 Park Maintenance 3,853,178 4,301,660 4,301,660 3,783,920 3,822,000 Beach Maintenance 6,345,432 3,344,040 3,344,040 703,420 713,140 Parks & Beach Maint. Admin. 588,752 701,430 701,430 666,230 683,840 Total 12,470,355 10,658,580 10,658,580 6,735,570 6,816,010 Bch, Prk & Rec Admin.

Bch, Prk & Rec Admin. 490,841 490,610 490,610 594,930 628,110 Total 490,841 490,610 490,610 594,930 628,110
Recreation
Beach Club 249,008 253,200 253,200 623,640 512,710
Community Center 566,754 612,870 612,870 573,710 587,690 Community Services 1,302,596 1,443,470 1,443,470 1,404,970 1,426,960 Aquatics 1,580,465 1,469,590 1,469,590 1,586,250 1,643,210 VH Sports Field/Aquatics Facility 974,509 1,048,090 1,048,090 899,160 921,120 Steed Park Operations 498,878 644,910 644,910 651,790 667,280 Recreation Program/Events 742,440 811,920 811,920 846,080 876,640 Total 5,914,650 6,284,050 6,284,050 6,585,600 6,635,610 70 80
Expenditures Actual Amended Bud. Adjusted Budget Budget By Program FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Programs Expenditure Summary
Marine Safety
Operations Rescue 2,143,974 2,201,340 2,201,340 2,195,000 2,306,700 Prevention & Education 105,886 142,850 142,850 144,880 148,160 Total 2,249,860 2,344,190 2,344,190 2,339,880 2,454,860 Total General Fund* 89,777,714 99,287,350 98,107,350 94,359,900 92,335,110 Other Funds
Street Improvement 1,238,783 5,736,250 5,736,250 2,566,770 2,416,770 Gas Tax
2106 Gas Tax 2,842,051 4,268,970 4,268,970 1,234,260 799,260 2107 Gas Tax 586,442 517,310 517,310 558,030 558,030
Road Maintenance Rehabilitation 161,578 3,821,580 3,821,580 6,065,000 2,725,000 Total 3,590,071 8,607,860 8,607,860 7,857,290 4,082,290 Senior Mobility Program 151,585 246,460 246,460 188,090 188,090 Miscellaneous Grants
CDBG Administration 73,422 63,610 63,610 60,170 60,170
CDBG Housing Rehabilitation 25,655 427,210 427,210 150,960 150,960 Public Fac/Infrastructure Grant 78,235 417,640 417,640 290,000 130,000 CDBG Public Services 48,850 47,130 47,130 45,000 45,000 CDBG Commercial Rehab 0 10,000 10,000 10,000 10,000
Total 226,162 965,590 965,590 556,130 396,130
Building Homes & Jobs Act (SB2) Fund 338,217 367,470 367,470 335,610 348,020 Disaster Relief 418,594 80,000 26,780 0 0
Air Quality Improvement 0 80,000 80,000 80,000 80,000
Local Cable Infrastructure 10,960 95,960 95,960 30,080 10,000 Police Grants 200,000 246,420 246,420 0 0
Local Transit Program Grants 1,382,829 1,501,490 1,501,490 2,582,690 1,841,690 Parks Acq. & Development 905,869 1,377,560 816,160 202,730 22,730 Local Drainage Facilities 267,725 2,061,960 2,061,960 277,480 19,070 R C F P P 29,845 360,950 360,950 9,910 9,910
Public Facilities Const. Fee 971,474 348,440 348,440 14,610 14,610 Developers Improvement 1,040,240 11,950 11,950 12,200 12,200 In-Lieu Housing 1,000 6,000 6,000 6,000 6,000
Low Mod Income Housing 5,210 35,210 35,210 80,540 80,540 Capital Improvement
Accrued Leave 73,769 200,000 1,148,810 0 0
Capital Equipment 153,747 696,520 696,520 0 0
Facilities Maintenance 1,916,190 3,513,850 3,513,850 0 0 Capital Improvements 0 0 0 5,280,000 1,620,000
Park Asset Replacement 163,389 2,736,610 2,736,610 0 0
Total 2,307,095 7,146,980 8,095,790 5,280,000 1,620,000 71 81
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Expenditures Actual Amended Bud. Adjusted Budget Budget By Program FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Programs Expenditure Summary
Water
Water Administration 3,049,651 3,081,920 3,081,920 2,430,580 2,501,810 Water Production 16,592,929 17,781,000 17,781,000 18,393,750 19,761,720 Transmission/Distribution 4,990,284 5,944,930 5,944,930 5,815,350 6,021,950 Water Conservation 365,110 519,770 519,770 518,620 528,040 Reclaimed Water 2,973,792 3,063,800 3,063,800 3,144,810 3,258,210 Total Operating 27,971,766 30,391,420 30,391,420 30,303,110 32,071,730 Water Depreciation Res. 2,379,592 24,272,410 20,501,630 5,875,840 4,975,840 Water Acreage Fee Res. 129,242 6,598,840 6,598,840 16,450 16,450 Water Other Agency 1,119,618 4,266,610 4,266,610 514,660 514,660 Total 31,600,218 65,529,280 61,758,500 36,710,060 37,578,680 Sewer
Sewer Administration 1,669,116 1,918,060 1,918,060 2,156,570 2,202,040 Treatment 6,047,653 6,428,290 6,428,290 6,770,950 6,965,140 Collection 4,395,329 4,992,090 4,992,090 4,755,300 4,786,510 Total Operating 12,112,098 13,338,440 13,338,440 13,682,820 13,953,690 Sewer Depreciation Res. 4,777,957 17,773,120 14,778,870 3,104,980 1,454,980 Sewer Connection Fee Res. 2,208,918 3,264,110 3,264,110 117,700 17,700 Sewer Other Agency 10,700 553,670 553,670 60,310 10,310 Total 19,109,673 34,929,340 31,935,090 16,965,810 15,436,680 Storm Drain Utility
Storm Drain Admin. 102,065 119,830 119,830 543,920 574,170 Storm Drain Maintenance 1,456,552 1,633,330 1,633,330 1,654,120 1,681,840 Total Operating 1,558,617 1,753,160 1,753,160 2,198,040 2,256,010 Storm Drain Improvements 4,846,321 3,071,440 2,853,870 1,615,790 4,961,790 Total 6,404,938 4,824,600 4,607,030 3,813,830 7,217,800 Clean Ocean
Storm Water Permit Compliance 823,696 957,670 957,670 0 0 Street Cleaning 644,648 572,600 572,600 0 0
Clean Ocean Improvements 440,403 747,320 747,320 0 0
Total 1,908,747 2,277,590 2,277,590 0 0
Solid Waste Management 351,044 252,800 252,800 1,185,480 1,145,200 Golf Course
Golf Course Maintenance 4,082,472 3,256,430 3,021,430 4,944,510 4,847,440 Golf Starter Operations 257,691 243,270 243,270 254,940 257,400 Total Operating 4,340,163 3,499,700 3,264,700 5,199,450 5,104,840 Golf Course Depreciation Res. 178,580 172,920 172,920 243,480 43,480 Capital Improvement Res. 17,271 900,660 900,660 905,470 3,005,470 Total 4,536,014 4,573,280 4,338,280 6,348,400 8,153,790 Central Services
Central Services 151,288 219,150 219,150 179,580 179,580 Communication Services 255,638 263,810 263,810 270,780 271,200 Total 406,926 482,960 482,960 450,360 450,780
Information Technology 2,270,445 3,790,920 3,790,920 2,827,740 2,929,230 Fleet Services
Fleet Maintenance 1,265,028 1,500,660 1,500,660 1,590,370 1,631,810 Fleet Replacement Reserve 2,143,113 3,025,550 3,067,130 840,330 892,310 Total 3,408,141 4,526,210 4,567,790 2,430,700 2,524,120 Medical Insurance 3,888,364 4,272,050 4,272,050 4,474,340 4,574,340 72 82
Expenditures Actual Amended Bud. Adjusted Budget Budget By Program FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Programs Expenditure Summary
Workers' Compensation 630,256 698,810 698,810 661,420 707,770 General Liab. Self-ins. 2,988,441 4,038,430 4,038,430 4,329,330 4,240,950 Total All Programs* $180,366,580 $258,760,170 $250,738,340 $194,637,500 $188,442,500 *Includes transfers out amounts
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel
Full-Time Salaries 17,720,996 20,732,670 20,732,670 21,669,210 23,137,760 Part-Time Salaries 2,141,965 2,233,030 2,233,030 2,113,190 2,132,550 Overtime 1,180,139 875,010 875,010 990,300 1,016,640
Benefits 11,322,989 12,289,930 12,289,930 13,306,130 13,742,970 Total Personnel 32,366,089 36,130,640 36,130,640 38,078,830 40,029,920 Office Supplies 201,621 280,950 280,950 251,100 251,120 Other Operating Supplies 2,438,890 2,835,030 2,835,030 2,921,210 3,014,980 Petroleum Supplies 505,221 655,750 655,750 661,750 661,750 Maintenance Supplies 814,191 1,027,370 1,027,370 1,040,840 1,069,590 Purchased Water 10,972,660 12,062,840 12,062,840 12,848,900 14,062,520 Total Supplies 14,932,583 16,861,940 16,861,940 17,723,800 19,059,960 Contractual Services
Administrative 908,779 1,177,700 1,177,700 1,050,650 1,243,530 Travel and Training 146,078 205,680 205,680 230,630 230,130 Utilities 5,984,615 6,427,070 6,427,070 6,277,350 6,423,780 Maintenance 14,841,545 22,895,210 21,263,860 13,265,230 13,122,850 Internal Services (764,258) (995,000) (995,000) (990,000) (990,000) Fire Contract Services 11,932,616 12,466,740 12,466,740 12,288,630 12,717,730 Ambulance Program 2,059,431 2,081,770 2,081,770 2,282,580 2,410,710 Police Contract Services 20,819,874 22,009,600 22,009,600 22,701,550 23,382,550 Public Safety 448,329 528,160 528,160 528,100 523,910
Legal Services 1,015,607 1,518,750 1,518,750 1,297,500 1,322,000 Rental 110,265 197,460 197,460 178,410 178,830
Animal/Rodent Control 956,633 1,011,290 1,011,290 947,540 988,330 Other Contractual Services 8,181,748 14,284,190 14,284,190 8,585,140 8,593,890 Total Contractual Services 66,641,262 83,808,620 82,177,270 68,643,310 70,148,240 Other Charges
Miscellaneous Charges 575,118 471,810 471,810 603,970 477,860 Claims and Insurance Charges 7,019,183 8,179,460 8,179,460 8,847,810 8,883,300 Taxes and Permits 234,975 298,460 298,460 366,060 369,060 Promotional Charges 166,997 179,770 179,770 205,230 211,300 Recreation Charges 1,052,861 1,187,250 1,187,250 1,252,640 1,252,820 Social Services 220,208 364,950 364,950 257,170 257,170 Depreciation 9,270,592 8,954,700 8,954,700 7,964,000 7,964,000 Contingency Reserve 1,227 21,900 21,900 30,000 30,000
Total Other Charges 18,541,161 19,658,300 19,658,300 19,526,880 19,445,510 Capital Outlay
Improvements Other Than Bldg. 18,709,525 68,637,250 63,614,250 19,984,000 18,805,000 Equipment 2,330,362 4,561,770 4,603,350 2,226,270 987,910 Major Maintenance 1,975,433 3,945,620 3,945,620 1,915,000 1,455,000 One-time Studies 293 1,390,900 1,390,900 0 0
Total Capital Outlay 23,015,613 78,535,540 73,554,120 24,125,270 21,247,910 Interdepartmental Charges
Interdepartmental Charges 8,330,310 8,720,350 8,720,350 8,398,810 8,554,780 Charges from Other Funds 0 60,000 60,000 35,000 35,000
Charges to Other Funds 0 (31,000) (31,000) 0 0
General Fund Overhead Charge 2,839,830 2,839,830 2,839,830 2,999,050 2,999,050 Total Interdepartmental Charges 11,170,140 11,589,180 11,589,180 11,432,860 11,588,830 Interfund Transfers 10,159,219 8,445,730 8,451,670 12,628,410 4,424,000 Debt Service 3,540,513 3,730,220 2,315,220 2,478,140 2,498,130 Ending Fund Balances 158,704,054 84,416,514 94,773,454 87,084,014 82,559,894 Total Expenditures/Uses* $180,366,580 $258,760,170 $250,738,340 $194,637,500 $188,442,500 *excluding fund balances
All Fund Expenditures Summary
75 85
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel
Salaries, Regular Full-Time 17,720,996 20,732,670 20,732,670 21,669,210 23,137,760 Salaries, Regular Part-Time 84,021 87,780 87,780 94,710 101,200 Salaries, Hourly Part-Time 2,057,944 2,145,250 2,145,250 2,018,480 2,031,350 Regular Overtime 0 4,470 4,470 4,470 4,470
Premium Overtime, Regular 1,143,481 830,590 830,590 950,670 974,190 Premium Overtime, Part-Time 36,658 39,950 39,950 35,160 37,980 Accrued Leave Payoff 398,221 549,470 549,470 370,800 371,340 Education Incentive Pay 301 310 310 580 580
Assignment Pay 278,700 255,780 255,780 255,780 255,780
Tool Replacement Allowance 500 500 500 500 500
Auto Allowance 24,000 41,700 41,700 24,000 24,000
Travel Allowance 15,919 0 0 27,000 27,000
Phone Allowance 4,404 19,020 19,020 5,410 5,410
Educational Reimbursement 11,749 26,970 26,970 27,710 27,710 Bilingual Pay 4,893 4,700 4,700 6,840 6,890
FICA 1,159,809 1,276,120 1,276,120 1,314,560 1,402,370
Medicare 308,362 328,520 328,520 340,440 364,040
State Disability Insurance 219,787 233,500 233,500 282,370 300,980 A. D. & D. Insurance 3,269 3,830 3,830 4,060 4,040
Long Term Disability Insurance 53,553 65,150 65,150 65,440 63,390 State Unemployment Insurance 31,883 51,060 51,060 52,800 55,970 Workers' Compensation Insurance 560,169 589,520 589,520 586,810 621,320 Life Insurance 39,563 49,150 49,150 53,050 48,340
Medical Insurance 3,129,855 3,499,330 3,499,330 3,987,430 4,126,640 P.E.R.S. Retirement Premium 177,444 218,800 218,800 271,930 283,120 San Clemente Retirement Premium 1,680,827 2,005,450 2,005,450 2,081,660 2,203,940 Retirement Premium (UAL) 3,084,350 2,926,290 2,926,290 3,401,050 3,401,050 Deferred Compensation 56,880 68,020 68,020 64,250 64,250 Deferred Compensation, Part Time 78,551 76,740 76,740 81,660 84,310 Total Personnel 32,366,089 36,130,640 36,130,640 38,078,830 40,029,920 Supplies
Office Supplies 84,755 91,920 91,920 92,690 92,450
Postage 112,856 180,770 180,770 152,520 152,620
Data Processing Supplies 4,010 8,260 8,260 5,890 6,050
Horticultural Supplies 150,937 159,230 159,230 172,540 185,890 Leadership Supplies 1,349 1,250 1,250 1,250 1,250
Medical Supplies 13,995 16,820 16,820 16,990 17,060
Chemical Supplies 1,072,497 1,241,830 1,241,830 1,362,210 1,408,180 Laboratory Supplies 62,359 67,110 67,110 76,550 82,680
Janitorial Supplies 57,815 63,970 63,970 65,560 67,550
Photographic Supplies 0 3,150 3,150 1,950 1,950
Protective Supplies 31,227 41,340 41,340 42,340 43,370
Gasoline 447,236 580,000 580,000 586,000 586,000
Propane 151 1,500 1,500 1,500 1,500
Diesel Fuel 57,834 74,250 74,250 74,250 74,250
Educational Material 7,431 10,180 10,180 7,330 7,480
Books, Codes and Supplement 3,258 15,750 15,750 8,550 12,550 Office Furniture and Equipment 31,905 93,320 93,320 59,320 59,470 All Fund Expenditures By Line Item
76 86
I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Expenditures By Line Item
Small Tools and Equipment 106,888 107,980 107,980 110,860 113,360 Clothing and Uniforms 74,665 72,570 72,570 92,840 93,130 Service Awards 1,442 4,440 4,440 4,440 4,440
Other Operating Supplies 971,686 1,027,240 1,027,240 1,025,100 1,048,760 Concession Supplies 47,366 120,000 120,000 90,000 90,000 Water Meter Purchase 0 2,140 2,140 2,140 2,140
Painting Supplies 1,118 6,350 6,350 6,510 6,680
Automotive & Equipment Parts 65,087 60,500 60,500 67,900 74,390 Street Signs 60,358 60,540 60,540 50,000 50,000
Street Materials 46,147 46,000 46,000 46,000 46,000
Other Maintenance Supplies 445,551 640,690 640,690 651,670 668,240 Purchased Water 10,972,660 12,062,840 12,062,840 12,848,900 14,062,520 Total Supplies 14,932,583 16,861,940 16,861,940 17,723,800 19,059,960 Contractual Services
Advertising 22,710 22,440 22,440 26,810 27,190
Legal Notices 20,851 38,750 38,750 38,750 36,750
Imaging of Documents 31,614 50,000 50,000 100,000 100,000 Printing and Binding 47,412 81,890 81,890 44,880 65,390 Travel and Training 129,397 184,420 184,420 208,570 207,890 Required Licensing Certification 15,338 16,340 16,340 17,200 17,380 Mileage 1,343 4,920 4,920 4,860 4,860
Code Updating Service 12,724 13,000 13,000 13,000 63,000 Property Insurance 773,468 971,620 971,620 827,210 951,200 OCFA Cont Facilities Maint 50,070 46,090 46,090 45,000 45,000 Data Lines 75,246 95,210 95,210 95,200 95,200
Internet Services 0 3,000 3,000 3,000 3,000
Telephone 221,176 220,200 220,200 234,300 234,300
Natural Gas 227,246 315,460 315,460 252,070 258,940
Electricity 3,720,575 3,750,700 3,750,700 3,756,820 3,855,550 Caltrans/Bahia Electricity 12,418 11,780 11,780 11,780 12,090 Water 949,740 1,092,640 1,092,640 976,250 1,010,590
Refuse Collection Service 0 103,000 103,000 92,700 92,700 Effluent Water 315,560 286,440 286,440 294,170 286,440
Landfill Fees 412,584 502,550 502,550 516,060 529,970
Maintenance of Buildings 387,226 468,790 468,790 474,160 485,040 Maintenance of Restrooms 194,150 189,880 189,880 203,900 196,830 Maintenance of Improvements 3,786,235 7,240,950 5,609,600 2,595,250 2,250,250 Maintenance of Beaches 280,198 333,060 333,060 319,700 319,700 Maintenance of Landscaping 2,605,121 2,633,710 2,633,710 2,770,720 2,764,760 Maintenance of Trees 549,460 581,630 581,630 484,540 444,420 Beach Cleaning 16,000 16,000 16,000 16,000 16,000
Maintenance of Office Equipment 31,041 45,730 45,730 45,150 45,150 Maintenance of Auto Equipment 43,695 48,070 48,070 62,350 63,070 Maintenance of Operating Equip. 389,023 531,930 531,930 483,040 488,020 Maint. of Computer Hardware 89,896 157,600 157,600 146,250 148,750 Maint. of Computer Software 1,082,181 1,180,590 1,180,590 1,247,620 1,268,620 Maintenance of Radio Equipment 70,275 86,000 86,000 87,350 89,970 Maintenance of Other Facilities 4,233,639 8,326,740 8,326,740 2,951,840 3,156,560 Maintenance of MO2 Diversion Fac. 29,332 32,000 32,000 32,860 33,750 77 87
I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Expenditures By Line Item
Graffiti Removal 84,784 91,700 91,700 78,700 84,700
Graffiti - Administration 41,200 36,000 36,000 36,000 36,000 Contracted Custodial Services 338,004 367,000 367,000 404,800 406,260 Center Striping/Markings 60,131 100,000 100,000 75,000 75,000 Street Sweeping Services 529,954 427,830 427,830 750,000 750,000 Engineering Services (764,258) (995,000) (995,000) (990,000) (990,000) SFR Plan Check 85,669 60,000 60,000 65,000 65,000
Clerical Services 18,186 61,000 61,000 31,500 31,500
Answering Services 7,460 10,740 10,740 11,040 11,320
Accounting and Auditing 26,478 91,830 91,830 75,700 80,700 Bank Merchant Fees 531,596 430,000 430,000 505,680 505,680 Broker Commissions 75,795 0 0 0 0
Fire Contract Services 11,743,322 12,271,770 12,271,770 12,087,700 12,510,770 OCFA Vehicle Replacement 189,294 194,970 194,970 200,930 206,960 Ambulance Program 2,059,431 2,081,770 2,081,770 2,282,580 2,410,710 Crossing Guards 291,836 327,450 327,450 320,630 314,630 Police Contract Services 20,819,874 22,008,050 22,008,050 22,700,000 23,381,000 Parking Citation Processing 156,493 200,710 200,710 207,470 209,280 Citizen Academy - Police 0 1,550 1,550 1,550 1,550
Legal Services - Retainer 374,518 400,000 400,000 412,000 424,500 Legal - Contingency 0 110,000 110,000 100,000 100,000
Other Legal Services 641,089 1,008,750 1,008,750 785,500 797,500 Medical Examinations 27,533 26,900 26,900 26,900 26,900 Investigative Services 101,893 28,550 28,550 36,000 36,000 Transit Services 0 0 0 305,200 304,200
Professional Services 2,415,627 3,343,020 3,343,020 2,398,540 2,395,290 Developers Reimbursement 0 50,000 50,000 25,000 25,000
Other Reimbursements 0 0 0 0 0
Accessibility Compliance Train/Svcs 499 0 0 20,500 20,500 Professional Studies 517,888 1,779,760 1,779,760 11,350 11,350 Rental of Land 50,453 54,300 54,300 41,500 41,500
Rental of Equipment 39,322 115,340 115,340 111,960 112,130 Rental of Uniforms 20,490 27,820 27,820 24,950 25,200
Animal Control and Shelter 921,780 966,440 966,440 919,540 960,330 Landscape Rodent Control 34,853 44,850 44,850 28,000 28,000 Contractual Services 4,157,718 8,201,880 8,201,880 4,846,400 4,856,590 Temporary Services 22,725 0 0 0 0
Sidewalk Pressure Wash 119,606 103,860 103,860 106,330 103,860 Inspection Services 73,075 96,650 96,650 120,000 120,000 Total Contractual Services 66,641,262 83,808,620 82,177,270 68,643,310 70,148,240 Other Charges
Court Costs/Citations 0 80 80 80 80
Claims Paid 671,628 794,690 794,690 510,000 510,000
Premiums Paid - Delta Care 20,282 30,900 30,900 30,900 30,900 Claims Paid - Delta Dental 113,912 162,500 162,500 162,500 162,500 Retiree Premiums - Dental 2,036 3,090 3,090 3,090 3,090 Premiums Paid - Medical 3,256,548 3,446,000 3,446,000 3,646,000 3,746,000 Premiums Paid - Vision 52,076 71,660 71,660 71,660 71,660 Retiree Claims - Delta Dental 38,938 60,000 60,000 60,000 60,000 78 88
I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Expenditures By Line Item
Retiree Premiums - Medical 204,149 284,500 284,500 284,500 284,500 Retiree Premiums - Vision 8,759 10,000 10,000 10,000 10,000 Claims Administration 47,470 81,990 81,990 64,000 65,000 Retiree Health Premium (OPEB) 100,001 100,000 100,000 100,000 100,000 Wellness Program 7,022 9,000 9,000 6,910 6,910
Workers' Compensation Premiums 211,713 275,000 275,000 269,000 309,350 Excess Insurance Premiums 2,291,671 2,859,130 2,859,130 3,636,160 3,530,300 Dues and Subscriptions 131,634 150,330 150,330 144,850 145,680 Property Taxes 3,743 6,460 6,460 10,060 10,060
Other Taxes 17,687 12,000 12,000 14,000 14,000
N P D E S Permits 213,545 280,000 280,000 342,000 345,000 Expenditure of Grants 20,899 19,980 19,980 16,150 16,150 Licenses and Permits 175,574 216,110 216,110 225,870 230,250 Boards & Commissions Expense 1,700 500 500 500 500
Special Meetings and Events 95,248 87,170 87,170 94,490 100,360 Fourth of July Celebration 43,689 54,800 54,800 74,940 74,940 City General Special Events (1,140) 0 0 0 0
Election Expenses/Special Elections 141,751 0 0 133,260 0 Recreation Special Events Expenses 104,537 109,000 109,000 111,680 111,860 Contract Class Instructors 948,324 1,078,250 1,078,250 1,140,960 1,140,960 Community Relations Expense (4,800) 1,800 1,800 1,800 2,000 Volunteer Program Expense 4,101 4,160 4,160 6,420 6,420 OCTA Senior Center Trans 151,125 246,000 246,000 185,000 185,000 Crime Prevention Expenditures 953 15,500 15,500 1,500 1,500 Character Counts Expenditures 0 7,920 7,920 500 500
Parent Project Expenditures 0 25,250 25,250 250 250
Trauma Intervention Program 8,328 8,090 8,090 9,000 9,000 Downtown Business Assoc Subsidy 34,000 34,000 34,000 34,000 34,000 Tourist & Conv. Bureau Subsidy 0 2,000 2,000 0 0
Marine Unit Support 16,851 20,900 20,900 17,500 17,500
Social Services Grants 38,850 37,130 37,130 37,000 37,000 Water Use Efficiency Rebate Program 11,312 55,610 55,610 57,110 58,660 Environmental Sustainability Grant 8,000 8,000 8,000 8,140 8,280 Depreciation 6,396,366 6,152,700 6,152,700 6,010,000 6,010,000 Depreciation Reserve Contribution 954,000 954,000 954,000 954,000 954,000 Depreciation - Asset Model 1,848,000 1,848,000 1,848,000 1,000,000 1,000,000 Amortization Expense 72,226 0 0 0 0
Refund of Prior Year Revenue 68,241 2,000 2,000 1,000 1,000 Other Operating Expense 8,985 10,200 10,200 10,100 10,350 Contingency Reserve 1,227 21,900 21,900 30,000 30,000
Total Other Charges 18,541,161 19,658,300 19,658,300 19,526,880 19,445,510 Capital Outlay
Improvements Other Than Bldg. 18,624,380 68,627,250 63,604,250 19,949,000 18,770,000 Tenant Improvements 85,145 10,000 10,000 35,000 35,000
Office Furniture and Equipment 0 0 0 120,000 0
Computer Equipment 119,996 1,035,540 1,035,540 89,000 91,000 General Machinery and Equipment 6,203 275,580 275,580 457,340 10,000 Automotive Equipment 2,204,163 3,250,650 3,292,230 1,559,930 886,910 Major Maintenance 1,296,594 2,143,610 2,143,610 675,000 375,000 79 89
I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 All Fund Expenditures By Line Item
Sidewalk Repair & Improvements 148,659 952,010 952,010 150,000 150,000 Sidewalk Improvements 0 0 0 290,000 130,000
Major Street Maintenance 380,359 600,000 600,000 550,000 550,000 Slurry Seal 149,821 250,000 250,000 250,000 250,000
Capital Study 293 1,390,900 1,390,900 0 0
Total Capital Outlay 23,015,613 78,535,540 73,554,120 24,125,270 21,247,910 Interdepartmental Charges
Insurance Charges 2,695,200 2,695,200 2,695,200 2,784,030 2,940,000 Postage Charges 80,450 80,450 80,450 66,370 66,370
Duplicating Charges 65,490 65,490 65,490 71,320 71,320
EDMS Charges 34,330 34,330 34,330 0 0
Information Technology Charges 2,413,130 2,413,130 2,413,130 2,799,230 2,799,230 Communications Charges 182,540 182,540 182,540 216,790 216,790 Fleet Rental Charges 2,063,230 2,443,270 2,443,270 2,461,070 2,461,070 Capital Equipment Rep. Charge 229,100 229,100 229,100 0 0 Park Asset Replacement Charge 220,000 230,000 230,000 0 0 Facilities Maintenance Rep. Charge 346,840 346,840 346,840 0 0 Charges from Weed Abatement 0 25,000 25,000 25,000 25,000 Charges from Engineering 0 20,000 20,000 10,000 10,000
Charges from Maintenance 0 15,000 15,000 0 0
General Fund Overhead Charges 2,839,830 2,839,830 2,839,830 2,999,050 2,999,050 Charges to Other Funds 0 (31,000) (31,000) 0 0
Total Interdepartmental Charges 11,170,140 11,589,180 11,589,180 11,432,860 11,588,830 Interfund Transfers
Transfer to General Fund 2,521,641 1,759,910 2,735,500 608,000 608,000 Transfer to 2106 Gas Tax Fund 15,000 55,200 55,200 23,000 27,000 Transfer to Storm Drain Fund 500,000 450,000 450,000 258,410 0 Transfer to St. Improvement Fund 700,000 700,000 700,000 250,000 250,000 Transfer to Golf Fund 39,004 35,000 35,000 1,789,000 1,789,000 Transfer to Water Fund 1,000,000 1,700,000 1,700,000 3,000,000 0 Transfer to Sewer Depreciation 0 200,000 200,000 0 0
Transfer to Sewer Connection 2,319,650 2,319,650 1,350,000 0 0 Transfer to Accrued Leave Fund 200,000 0 0 0 0
Transfer to Facilities Maintenance 400,000 400,000 400,000 0 0 Transfer to Other Funds 2,463,924 825,970 825,970 6,700,000 1,750,000 Total Interfund Transfers 10,159,219 8,445,730 8,451,670 12,628,410 4,424,000 Debt Service
Principal Expenditure 1,918,847 200,000 0 0 0
Water Loan Principal 0 724,500 724,500 740,420 756,710
Lease/Purchase Principal 39,821 27,710 27,710 29,670 31,780 Water Loan Interest 183,924 176,200 176,200 160,200 143,900 Lease/Purchase Interest 10,725 41,810 6,810 4,850 2,740 SBITA Interest Expense 20,348 0 0 0 0
P.E.R.S. Unfunded Liability 1,366,848 2,560,000 1,380,000 1,543,000 1,563,000 Total Debt Service 3,540,513 3,730,220 2,315,220 2,478,140 2,498,130 Total: $180,366,580 $258,760,170 $250,738,340 $194,637,500 $188,442,500 80 90
I I
* General Government includes: City Manager, City Council, City Clerk, and City General and excludes transfers out.

General Fund Revenues and Expenditures
FY 2026-27
Miscellaneous $3.23
Service Charges $8.14
Interest & Rents $4.06
Fines $0.63
Intergovernmental $0.72
Permits & Fees $1.53
Property Taxes $50.82
Sales Taxes $12.92
Other Taxes $6.26
General Fund Revenues
FY 2027
(in millions)
Total - $88.3 million
Beaches, Parks
& Rec. $7.18
Public Works
$18.72
Community
Development
$8.26
Fire Services
$15.45
Police Services
$24.86
Marine Safety
$2.34
Finance & Admin
Services $4.53
General
Government* $6.50
General Fund Expenditures
by Department
FY 2027
(in millions)
Total - $87.8 million
Debt Service
$1.54
Interdepartmental
Charges $5.48
Capital Outlay $1.37
Other Charges
$1.80
Contractual
Services
$50.78
Supplies
$1.55
Personnel
$25.32
General Fund Expenditures
By Category
FY 2027
(in millions)
Total - $87.8 million
FY 2026-27 General Fund Operating Surplus - $471,620
81 91
i i
* General Government includes: City Manager, City Council, City Clerk, and City General and excludes transfers out.

General Fund Revenues and Expenditures
FY 2027-28
Miscellaneous $3.23
Service Charges…
Interest & Rents $4.37
Fines $0.64
Intergovernmental $0.66
Permits & Fees $1.55
Property Taxes $52.12
Sales Taxes $13.21
Other Taxes $7.08
General Fund Revenues
FY 2028
(in millions)
Total - 91.1 million
FY 2027-28 General Fund Operating Surplus - $496,330
Beaches, Parks
& Rec. $7.26
Public Works
$19.21
Community
Development …
Fire Services
$16.02
Police Services
$25.55
Marine Safety
$2.45
Finance & Admin
Services $4.73
General Government*
$6.72
General Fund Expenditures
by Department
FY 2028
(in millions)
Total - $90.6 million
Debt Service
$1.56
Interdepartmental
Charges $5.61
Capital Outlay $1.27
Other Charges
Contractual $1.67
Services
$52.28
Supplies
$1.58
Personnel
$26.58
General Fund Expenditures
By Category
FY 2028
(in millions)
Total - $90.6 million
$8.60
82 92
i i
General Fund Actual Amended Bud. Adjusted Budget Budget FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28
Revenues:

Taxes 66,303,066 68,560,450 68,560,450 70,005,160 72,411,760 Permits & Fees 1,771,883 1,466,870 1,466,870 1,527,380 1,546,480 Intergovernmental 1,205,861 3,096,350 3,096,350 718,430 664,430 Service Charges 7,795,937 7,573,880 7,573,880 8,144,180 8,196,810 Fines 616,742 624,600 624,600 626,750 637,300
Interest & Rents 4,830,835 3,916,550 3,916,550 4,055,570 4,365,740 Miscellaneous Income 332,077 69,350 69,350 70,180 71,050 Interfund Revenue 3,043,600 3,042,600 3,042,600 3,160,870 3,160,870 Total Revenues 85,900,001 88,350,650 88,350,650 88,308,520 91,054,440 Expenditures: Actual Amended Bud. Adjusted Budget Budget Expenditures by Category FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $21,640,937 $23,954,020 $23,954,020 $25,317,100 $26,580,660 Supplies 1,456,243 1,629,130 1,629,130 1,547,110 1,583,880 Contractual Services 49,102,356 54,496,280 54,496,280 50,779,880 52,283,590 Other Charges 1,540,898 1,568,640 1,568,640 1,795,470 1,668,910 Capital Outlay 7,074,638 7,360,550 7,360,550 1,370,000 1,265,000 Interdepartmental Charges 5,728,340 5,937,560 5,937,560 5,484,340 5,613,070 Debt Service 1,366,848 2,560,000 1,380,000 1,543,000 1,563,000 Total Expenditures 87,910,260 97,506,180 96,326,180 87,836,900 90,558,110 Expenditures By Department
General Government 6,389,824 7,598,980 6,418,980 6,505,340 6,724,560 Finance & Administrative Services 3,876,676 4,322,800 4,322,800 4,527,590 4,728,710 Public Safety 39,614,274 41,532,390 41,532,390 42,645,560 44,021,640 Community Development 7,060,031 10,683,080 10,683,080 8,256,520 8,605,650 Public Works 24,563,964 26,594,270 26,594,270 18,721,360 19,213,830 Beaches, Parks & Recreation 6,405,491 6,774,660 6,774,660 7,180,530 7,263,720 Total Expenditures 87,910,260 97,506,180 96,326,180 87,836,900 90,558,110 Fund Balance: The General Fund's Fund Balance is presented on the next page and is comprised of restricted, committed, assigned, and unassigned fund assets.

General Fund Summary
Description: The General Fund is the primary operating fund of the City of San Clemente and is used to account for all financial resources except those required to be accounted for in another fund.

Funding : Revenues are generated from general taxes, including property and sales taxes, service charges, permits and other fees, investment earnings and other intergovernmental revenues. Expenditures are for the operating costs of the City including police, fire, public works, development, recreation and administration of these programs. These exclude transfers in and transfers out to fund balance.

Revenues and Expenditures
83 93
$ 26,236,864
General Fund FY 2026-27 Budget
General Fund Revenues $ 88,308,520
Less: General Fund Expenditures (87,836,900)
General Fund Operating Surplus 471,620
General Fund FY 2027-28 Budget
General Fund Revenues $ 91,054,440
Less: General Fund Expenditures (90,558,110)
General Fund Operating Surplus 496,330
27,204,814
Transfers In:

FY 2027 - Gas Tax and Misc Grant Funds $ 608,000
FY 2028 - Gas Tax and Misc Grant Funds 608,000
Transfers out:

Senior Mobility Fund (50,000)
Capital Improvement Fund (5,000,000)
Storm Drain Fund (2,100,000)
Transit Fund (700,000)
PHLA Fund (250,000)
Solid Waste Fund (200,000)
Net Transfers (7,084,000)
$ 20,120,814
General Fund - Fund Balance
Ending Fund Balance: Assigned fund balance includes Emergency reserves, pension reserves, and accrued leave reserves and is 91% or $18.4 million and unassigned fund balance is $1.7 million or 9% of the total General Fund - fund balance.

The following table summarizes General Fund activity for the two year budget cycle, with information on beginning and ending fund balance. The General Fund balance at the beginning of the two-year budget cycle is $26.2 million and increases to $27.2 million. Net transfers made total $7.1 million and decrease the fund balance to $20.1 million.

Ending Fund Balance at June 30, 2028
Subtotal, before Transfers
Beginning Fund Balance at June 30, 2026
Emergency Reserve
$16.3 81%
Pension - Section 115
Trust $1.2 6%
Accrued Leave $0.9 4%
Unassigned Fund Balance
$1.7 9%
Fund Balance
Ending fund balance June 30, 2028
$20.1 million
($ in millions)
84 94
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Property Tax $45,913,000 $47,398,200 $47,398,200 $49,354,380 $51,324,040 Transient Occupancy Tax 3,142,121 3,550,000 3,550,000 3,300,000 3,400,000 Sales Tax 12,771,872 13,209,500 13,209,500 12,923,530 13,210,470 Franchise Tax 2,358,391 2,400,000 2,400,000 2,327,000 2,327,000 Property Transfer Tax 896,222 720,000 720,000 720,000 720,000 Assessments & Delinquent Taxes 106,826 67,750 67,750 75,250 75,250 Business License Tax 1,114,634 1,215,000 1,215,000 1,305,000 1,355,000 Total Taxes 66,303,066 68,560,450 68,560,450 70,005,160 72,411,760 Construction Permits 1,546,996 1,301,370 1,301,370 1,346,880 1,365,980 Alarm Permits 72,000 70,000 70,000 70,000 70,000
Miscellaneous Permits 152,887 95,500 95,500 110,500 110,500 Total Permits & Fees 1,771,883 1,466,870 1,466,870 1,527,380 1,546,480 Grants 900,296 2,825,350 2,825,350 443,430 389,430
Motor Vehicle Tax 101,072 70,000 70,000 80,000 80,000
Other State Subventions 204,493 201,000 201,000 195,000 195,000 Total Intergovernmental 1,205,861 3,096,350 3,096,350 718,430 664,430 Planning Development Fees 164,751 204,200 204,200 204,200 204,200 Plan Check Fees 805,538 672,410 672,410 778,400 786,340 General Government Fees 12,088 6,400 6,400 57,400 57,400 Traffic Fees - 1,200 1,200 1,200 1,200
Weed & Nuisance Abatement 9,227 134,150 134,150 9,300 9,300 Ambulance Service Charges 2,868,902 2,826,900 2,826,900 2,926,900 2,927,000 Marine Safety Fees 278,255 245,400 245,400 298,110 305,130 Public Safety Fees - 600 600 250 250
Parking Meters & Permits 1,420,807 1,295,000 1,295,000 1,390,000 1,410,000 Inspection Fees 108,427 81,500 81,500 96,500 96,500
Recreation Fees 2,127,942 2,106,120 2,106,120 2,381,920 2,399,490 Total Service Charges 7,795,937 7,573,880 7,573,880 8,144,180 8,196,810 Parking Violations 326,582 330,000 330,000 335,000 340,000 Vehicle Code & Court Fines 228,293 242,500 242,500 210,000 215,500 Other Fines 61,867 52,100 52,100 81,750 81,800
Total Fines 616,742 624,600 624,600 626,750 637,300
Interest 1,521,409 560,000 560,000 600,000 595,000
Site leases 620,830 670,520 670,520 664,630 697,330
Facility Rental 2,688,596 2,686,030 2,686,030 2,790,940 3,073,410 Total Interest and Rents 4,830,835 3,916,550 3,916,550 4,055,570 4,365,740 Miscellaneous Revenue 332,077 69,350 69,350 70,180 71,050 General Fund O/H Charges 3,043,600 3,042,600 3,042,600 3,160,870 3,160,870 Total Other Revenues 3,375,677 3,111,950 3,111,950 3,231,050 3,231,920 Total Revenues 85,900,001 88,350,650 88,350,650 88,308,520 91,054,440 Transfers In 2,521,641 1,759,910 2,708,720 608,000 608,000 Total Funding Sources $88,421,642 $90,110,560 $91,059,370 $88,916,520 $91,662,440 General Fund Revenue Summary
by Category
85 95
PRIOR YEARS BUDGET AMOUNT $ 88,350,650 $ 88,308,520
Summary of changes:

Taxes
Property tax (excludes property transfer tax) 1,956,180 1,969,660 Transient occupancy tax (250,000) 100,000
Sales tax (285,970) 286,940
Business License tax 90,000 50,000
Franchise tax (73,000) -
Permits & fees
Construction permits 45,510 19,100
Intergovernmental revenues
State grants (2,456,920) -
County grants (125,000) (55,000)
Service Charges
Ambulance service charges 100,000 100
Recreation program fees 275,800 17,570
Inspection fees 15,000 -
Plan Check fees 105,990 7,940
Weed & Nuisance Abatement (124,850) -
Fines
Vehicle Code & Court Fines
Parking Violations 5,000 5,000
Vehicle Code and Court Fines (32,500) 5,500
Interest & Rents
Other city leases, including Negocio building (5,890) 32,700 Interest 40,000 (5,000)
Facility Rentals 104,910 282,470
Other Revenues
General Fund overhead charges 118,270 -
Aggregate Change in Other Categories 455,340 28,940
FISCAL YEAR BUDGETED REVENUES $ 88,308,520 $ 91,054,440 FY 2026-27 FY 2027-28
General Fund Revenue Overview
86 96
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Taxes
Current Year Secured Taxes $34,595,089 $36,118,000 $36,118,000 $37,229,990 $38,719,190 Current Year Unsecured Taxes 1,098,844 986,000 986,000 1,271,370 1,325,250 Supp. Roll Property Taxes 823,795 590,000 590,000 590,000 590,000 ERAF Property Tax 9,395,250 9,718,400 9,718,400 10,335,430 10,773,430 Prior Year Secured & Unsecured 260,556 190,000 190,000 200,000 200,000 Property Tax Admin. Charge (260,534) (204,200) (204,200) (272,410) (283,830) Transient Occupancy Tax 2,356,989 2,500,000 2,500,000 2,400,000 2,500,000 Transient Occupancy Tax Vacation Rental 785,132 1,050,000 1,050,000 900,000 900,000 General Sales Tax 12,183,102 12,585,000 12,585,000 12,313,490 12,600,430 P.S. Sales Tax Augmentation 588,770 624,500 624,500 610,040 610,040 San Diego Gas & Electric 865,878 840,000 840,000 850,000 850,000 Southern California Gas 170,726 200,000 200,000 200,000 200,000 Cox Communications 720,050 790,000 790,000 700,000 700,000 CR&R 581,159 535,000 535,000 550,000 550,000
Other Franchise Fees 8,899 15,000 15,000 7,000 7,000
Parimutual Taxes 11,679 20,000 20,000 20,000 20,000
Property Transfer Tax 896,222 720,000 720,000 720,000 720,000 Business License Tax 1,000,399 1,110,000 1,110,000 1,200,000 1,250,000 Home Occupation Permits 114,235 105,000 105,000 105,000 105,000 Penalty & Interest - Delqnt. Prop. Tax 106,566 67,500 67,500 75,000 75,000 Penalty & Interest - Delqnt. Prop. Assmt. 260 250 250 250 250 Total Taxes 66,303,066 68,560,450 68,560,450 70,005,160 72,411,760 Permits & Fees
Building Permits 799,503 649,950 649,950 682,450 696,100 Disability Access/Educ Fee 20,869 20,500 20,500 20,500 20,500 Electrical Permits 274,422 336,400 336,400 336,400 336,400 Mechanical Permits 118,785 96,520 96,520 101,350 103,400 Plumbing Permits 234,409 164,220 164,220 172,400 175,800 Grading Permits 17,944 16,140 16,140 16,140 16,140
STLU Permit Fee 81,064 17,640 17,640 17,640 17,640
Street Encroachment Permits 152,887 95,000 95,000 110,000 110,000 Alarm Permits 72,000 70,000 70,000 70,000 70,000
Miscellaneous Permits 0 500 500 500 500
Total Permits & Fees 1,771,883 1,466,870 1,466,870 1,527,380 1,546,480 Intergovernmental
Mandated Cost Reimbursement 73,896 65,000 65,000 65,000 65,000 S.O.N.G.S. Grant 170,757 188,430 188,430 188,430 188,430 Coastal Conservatory Grant 0 1,719,000 1,719,000 0 0
Other State Grant 538,290 737,920 737,920 0 0
Motor Vehicle Tax 101,072 70,000 70,000 80,000 80,000
Homeowners Exempt. Subvention 130,597 136,000 136,000 130,000 130,000 State COPS Grant 0 0 0 200,000 201,000
Other County Grants 0 180,000 180,000 55,000 0
Other Governmental Revenues 191,249 0 0 0 0
Total Intergovernmental 1,205,861 3,096,350 3,096,350 718,430 664,430 General Fund Revenues By Line Item
87 97
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General Fund Revenues By Line Item
Service Charges
Business License Processing Fee 46,787 45,000 45,000 45,000 45,000 Building Plan Check Fees 623,380 520,910 520,910 616,900 624,840 Planning Plan Check Fees 60,185 70,000 70,000 70,000 70,000 Transportation Permits 1,248 1,200 1,200 1,200 1,200
Improvement Plan Check Fees 34,343 30,000 30,000 30,000 30,000 Landscape Plan Check Fees 26,833 1,500 1,500 1,500 1,500 SFR Plan Check Fee 60,797 50,000 50,000 60,000 60,000
Reproduction of Documents 1,423 1,400 1,400 1,400 1,400 Imaging of Documents 0 0 0 51,000 51,000
Map Sales 9 20 20 20 20
Bad Check Service Charges 10,665 5,000 5,000 5,000 5,000 Other Planning Service Fees 12,793 8,000 8,000 8,000 8,000 Planning - CC Applications 11,961 5,500 5,500 5,500 5,500 Planning - PC Applications 13,261 77,000 77,000 77,000 77,000 Planning - ZA Applications 8,865 16,000 16,000 16,000 16,000 Planning - Admin Applications 37,423 25,000 25,000 25,000 25,000 Traffic Model Fees 0 700 700 700 700
Traffic Review Fees 0 500 500 500 500
General Plan Update Fee 16,386 18,000 18,000 18,000 18,000 Weed Assessments - Current Year 3,613 3,000 3,000 3,000 3,000 Weed Assessments - Prior Year 0 1,000 1,000 1,000 1,000 Nuisance Abatement Reimb. 5,604 130,000 130,000 5,000 5,000 Sign Storage Fee 10 150 150 300 300
Ambulance Service Charges 2,839,202 2,800,000 2,800,000 2,900,000 2,900,000 Ambulance Subscription Fees 29,700 26,900 26,900 26,900 27,000 Special Lifeguard Services 7,973 6,500 6,500 6,440 6,750 Junior Lifeguard Services 189,585 207,900 207,900 222,500 222,500 Special Beach Events Fees 68,684 21,000 21,000 53,670 60,380 Film Permit Fees 12,013 10,000 10,000 15,500 15,500
Visa Letter Service 0 100 100 0 0
Police Duplication Fees 0 250 250 0 0
Other Police Dept. Service Charge 0 250 250 250 250
Parking Meters 1,201,690 1,085,000 1,085,000 1,180,000 1,200,000 Parking Permits 219,117 210,000 210,000 210,000 210,000 Public Works Inspection Fee 0 1,500 1,500 1,500 1,500
Engineering Plan Review 9,108 4,500 4,500 4,500 4,500
Construction Inspection Fee 102,957 75,000 75,000 90,000 90,000 Engr. & Geotech. Reimbursement 5,470 5,000 5,000 5,000 5,000 Other Engineering Service Fees 6,919 4,000 4,000 4,000 4,000 OHBC Pool Programs & Admin Fees 9,705 8,000 8,000 22,690 25,930 SCAC Pool Programs & Admin Fees 166,675 150,000 150,000 382,500 395,000 Swimming Pool Fees 74,754 39,860 39,860 72,420 72,420
OHBC Contract Building Class Fees 51,344 37,170 37,170 74,340 74,340 SCAC Contract Pool Class Fees 309,913 310,000 310,000 326,830 326,830 Comm. Ctr. Contract Class Fees 264,063 285,000 285,000 271,170 271,170 Offsite Contract Class Fees 27,500 21,070 21,070 21,070 21,070 Recreation Sports Fees 175,208 150,000 150,000 162,270 162,270 SCAC Building Class Fees 167,133 150,000 150,000 159,890 159,890 Park Class Fees 321,992 330,000 330,000 330,000 331,820 88 98
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General Fund Revenues By Line Item
Beach Class Fees 382,102 465,000 465,000 378,650 378,650 Street Banner Fees 9,567 13,000 13,000 11,370 11,380
Processing Fee 4,931 3,000 3,000 4,820 4,820
Recreation Special Events 45,050 28,000 28,000 44,420 44,420 Fun on the Run Program Revenue 2,415 1,000 1,000 4,460 4,460 After School Programming 115,581 115,000 115,000 115,000 115,000 Total Service Charges 7,795,937 7,573,880 7,573,880 8,144,180 8,196,810 Fines
Parking Violations 326,582 330,000 330,000 335,000 340,000 Vehicle Code Fines 204,192 237,170 237,170 205,000 210,000 Court Fines 24,101 5,330 5,330 5,000 5,500
Administration Citation 60,600 50,000 50,000 80,000 80,000 Enforcement Administrative Citation 1,267 2,100 2,100 1,750 1,800 Total Fines 616,742 624,600 624,600 626,750 637,300
Interest and Rents
Interest Earnings 751,397 560,000 560,000 575,000 570,000 Unrealized Gain/Loss on Invest. 650,044 0 0 0 0
Interest Earnings - Other 119,968 0 0 25,000 25,000
Communication Site Rental 620,830 670,520 670,520 664,630 697,330 Beach Club Rent 437 0 0 251,800 515,590
Community Center Rent 63,706 57,320 57,320 94,040 101,870 Library Annex Rentals 7,798 7,000 7,000 15,130 15,130
Pool Rental 160,427 132,000 132,000 168,580 167,620
Senior Center Rentals 9,188 5,000 5,000 9,170 9,170
Sports Field Rentals 740,949 510,000 510,000 673,030 710,420 Rental of City Property 85,532 100,000 100,000 112,000 118,000 Park Rentals 55,995 52,000 52,000 99,460 109,400
Steed Park Concession 100,887 300,000 300,000 121,880 121,880 OHBC - Concession 288,336 310,000 310,000 75,000 0
Pier Restaurant 780,498 879,490 879,490 795,000 816,000 Negocio (1030) Lease 116,463 196,800 196,800 202,240 208,300 "T" Street Concession 74,176 47,000 47,000 71,000 76,000 Bait & Tackle Shop 12,297 16,100 16,100 19,200 19,200
Fabricante Rental 33,000 30,000 30,000 36,000 36,000
1100 N. El Camino Real Bldg Lease 33,516 43,320 43,320 47,410 48,830 Other Lease Revenues 125,391 0 0 0 0
Total Interest and Rents 4,830,835 3,916,550 3,916,550 4,055,570 4,365,740 Other Revenue
Other Donations 32,000 0 0 0 0
Cash Over or Short (17) 1,000 1,000 1,000 1,000
Miscellaneous Income 8,893 4,500 4,500 4,500 4,500
Settlement (OPIOID) Revenue 110 0 0 0 0
EV Charging Electric Reimbursements 41,362 13,000 13,000 13,000 13,000 Miscellaneous Reimbursement 208,907 9,350 9,350 9,350 9,350 Comm Park Maint Reimb 40,822 41,500 41,500 42,330 43,200 General Fund O/H Charges 3,043,600 3,042,600 3,042,600 3,160,870 3,160,870 Total Other Revenues 3,375,677 3,111,950 3,111,950 3,231,050 3,231,920 89 99
Revenues Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General Fund Revenues By Line Item
Transfer from Misc. Grants Fd. 10,000 10,000 10,000 8,000 8,000 Transfer from 2107 Gas Tax 579,132 510,000 510,000 550,000 550,000 Transfer from Water Fund 25,000 25,000 25,000 25,000 25,000 Transfer from Sewer Fund 25,000 25,000 25,000 25,000 25,000 Transfer from Accrued Leave 0 0 948,810 0 0
Transfer from Other Funds 1,882,509 1,189,910 1,189,910 0 0 Transfers In 2,521,641 1,759,910 2,708,720 608,000 608,000 Total: $88,421,642 $90,110,560 $91,059,370 $88,916,520 $91,662,440 90 100
Revenue Assumptions
for Major Revenue Sources
General Fund Revenue Assumptions
City revenues come from multiple sources, and several key factors are evaluated when projecting revenue for the next two fiscal years. Historical trends, current economic conditions, and anticipated changes in the local and broader economic environment are all factored into the forecast. The summary below highlights the revenue sources of the City’s General Fund.

Property Tax
Property taxes remain the largest and most stable source of General Fund revenue. Collections are projected to increase by $2.0 million in FY 2026-27 compared to the FY 2025-26 budget, with an additional $2.0 million increase in FY 2027-28. These projections align with the City’s long term trend of 4%-7% annual growth in assessed property values since 2015.

Current real estate conditions show reduced housing inventory and longer listing times, which signals a cooling market. Homes, however, are still selling above assessed value even though the margin has narrowed compared to the past four years. Given these trends, the City’s property tax revenue forecast remains intentionally conservative while still reflecting steady growth.

Property Tax
57%
Sales Tax
14%
Transient Occupancy
Tax
4%
Other Taxes
3%
Permits and Fees
2%
Intergovernmental
1%
Service Charges
9%
Fines
1%
Interest and Rents
5%
Other Rev
4%
Revenue Source and Impact
91 101
Revenue Assumptions
for Major Revenue Sources
Sales Tax
Sales taxes, which include general sales taxes and Public Safety Augmentation sales taxes, is projected to decrease

2.2%, approximately $0.3 million below the budgeted amount in FY 2025-26. Two years ago, consumer spending was not constrained by the level of economic uncertainty seen today. Households are prioritizing essential goods and purchases are value driven, reflecting a more cautious approach to spending.

As market indicators point toward a gradually stabilizing economic environment, the City anticipates a modest increase for sales tax revenues by 2.2% in FY 2027-28. This modest increase reflects a more typical growth pattern.

This forecast takes into consideration the current consumer behavior with emerging signs of recovery in spending.

Transient Occupancy Tax (TOT)
TOT is a 10% "bed" tax that is added to hotel room bills and vacation rentals within City limits. As a coastal community, San Clemente’s TOT revenue is closely tied to weather, tourism volume, and broader economic conditions, all of which naturally introduce fluctuations year over year.

For FY 2026-27, TOT revenues are projected to decrease by approximately $0.25 million from the FY 2025-26 budget, followed by a modest increase of about $0.1 million in FY 2027-28. Local economic indicators show that international tourism remains 6.3% below pre-pandemic levels coupled with discretionary travel spending for local tourism. These projections reflect current actuals and observed market behavior, resulting in a measured forecast that accounts for both short term market softness and a gradual stabilization in the tourism sector taking into account the Olympics in California in the summer of 2028.

Other Taxes
This revenue category includes franchise taxes from the City’s utility providers, parimutuel taxes, and business license taxes. Franchise tax revenues, which are based on gross sales from electricity, gas, cable and solid-waste providers, are projected to decline. The most significant driver of the decline is the continued drop in cable franchise fees, which have decreased steadily over the past five years as households shift from traditional cable to streaming services. The two-year budget reflects this downward trend. Other tax categories are expected to remain flat.

In contrast, the Business License revenues have increased. The implementation of a new licensing software has streamlined billing and payment processing, reducing administrative workload and improving compliance and enforcement. The system provides for a more user-friendly experience by allowing business owners to apply, renew and pay licenses online, a service that was not available in prior years. These improvements have contributed to stronger and more reliable Business License revenue performance.

Permits & Fees
Construction, Alarm and Miscellaneous permits are included in this section. Alarm permits remain flat, as they operate on a consistent annual subscription model. In contrast, Construction and Miscellaneous permits are far more variable, since their revenue depends heavily on the pace and timing of individual development projects. Larger developments can cause significant revenue fluctuations year over year, making budget projections difficult. The City is conservatively projecting revenue for this category until actual data is available throughout the fiscal year. 92 102
Revenue Assumptions
for Major Revenue Sources
Intergovernmental – State Subventions and Grants
This category consists of Federal, State and County grants. The City receives grant funding for various purposes, including recurring and one time grants. Major fluctuations in this category are due to one-time grants received within a previous fiscal year, one of which is the State Coastal Grant that is slated to be received in FY 2025-26 in the amount of $1.7 million.

Service Charges
Service Charges include development fees, public safety, and recreation charges for services provided to the community. Revenue growth is projected across several key areas including ambulance service, recreation fees, and plan check fees. The most significant increase comes from recreation fees, driven by the updated fee structure implemented in FY 2025-26. This adjustment brings fees more in line with the true cost of service and is expected to meaningfully strengthen revenue performance over the next two fiscal years.

Fines
The fines revenue category consists of parking violations, vehicle code and court fines, and other fines. Most of these are fines remitted to the City from the Orange County Court system for legal violations (traffic tickets, etc.) which occur within the City of San Clemente. This revenue line item remains flat based on historical data.

Interest and Rents
Interest and Rents include investment earnings, ongoing rental income from City owned properties, revenue from communication antenna sites throughout the community, and rentals of recreation facilities. Investment income, based on an anticipated rate of return and an average General Fund cash balance of $25 million, is projected to generate $600,000 in FY 2026-27 and $595,000 in FY 2027-28, inclusive of market value adjustments.

Overall, revenues in this category remain stable and predictable. A slight increase is expected in facility rental income as the City will be assuming operational responsibility for the Beach Club, expanding opportunities for community use and rental activity.

Other Revenues and Financing Sources
These categories include General Fund overhead charges, interfund transfers and miscellaneous revenue. In total, $3.8 million is budgeted for FY 2026-27 and FY 2027-28. Overhead charges increase $118,270 and are calculated annually based on direct and indirect costs for services provided to funds outside of the General Fund. 93 103
94 104
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Full-Time Salaries $11,741,398 $13,597,460 $13,597,460 $14,168,950 $15,135,130 Part-Time Salaries 2,060,110 2,148,610 2,148,610 2,031,790 2,049,130 Overtime 505,629 337,600 337,600 347,700 353,970
Benefits 7,333,800 7,870,350 7,870,350 8,768,660 9,042,430 Total Personnel 21,640,937 23,954,020 23,954,020 25,317,100 26,580,660 Office Supplies 142,886 222,320 222,320 165,170 164,470 Other Operating Supplies 921,690 999,300 999,300 1,034,420 1,065,060 Maintenance Supplies 391,667 407,510 407,510 347,520 354,350 Total Supplies 1,456,243 1,629,130 1,629,130 1,547,110 1,583,880 Administrative 431,785 547,750 547,750 596,840 703,600
Travel and Training 88,740 126,410 126,410 138,250 136,560 Utilities 2,730,480 2,961,170 2,961,170 2,748,320 2,821,480 Maintenance 6,503,274 7,791,360 7,791,360 5,630,190 5,659,620 Internal Services (857,013) (1,070,000) (1,070,000) (1,070,000) (1,070,000) Fire Contract Services 11,932,616 12,466,740 12,466,740 12,288,630 12,717,730 Ambulance Program 2,059,431 2,081,770 2,081,770 2,282,580 2,410,710 Police Contract Services 20,619,874 21,808,050 21,808,050 22,700,000 23,381,000 Public Safety 389,268 489,300 489,300 457,480 451,480
Legal Services 855,607 1,032,500 1,032,500 1,059,500 1,077,000 Rental 64,537 75,010 75,010 59,370 59,370
Animal Control 956,633 1,011,290 1,011,290 947,540 988,330 Other Contractual Services 3,327,124 5,174,930 5,174,930 2,941,180 2,946,710 Total Contractual Services 49,102,356 54,496,280 54,496,280 50,779,880 52,283,590 Miscellaneous Charges 291,106 160,120 160,120 289,630 156,820 Promotional Charges 166,697 182,370 182,370 203,030 209,100 Recreation Charges 1,052,861 1,187,250 1,187,250 1,252,640 1,252,820 Social Service Charges 30,234 32,000 32,000 35,170 35,170 Contingency Reserve 0 6,900 6,900 15,000 15,000
Total Other Charges 1,540,898 1,568,640 1,568,640 1,795,470 1,668,910 Improvements Other Than Bldg. 5,059,446 2,763,150 2,763,150 0 0 Machinery and Equipment 78,500 17,180 17,180 120,000 15,000 Major Maintenance 1,288,606 1,912,460 1,912,460 300,000 300,000 Sidewalk Repair & Improvements 117,905 432,760 432,760 150,000 150,000 Major Street Maintenance 380,360 600,000 600,000 550,000 550,000 Slurry Seal 149,821 250,000 250,000 250,000 250,000
Capital Study 0 1,385,000 1,385,000 0 0
Total Capital Outlay 7,074,638 7,360,550 7,360,550 1,370,000 1,265,000 Interdepartmental Charges 5,728,340 5,968,560 5,968,560 5,484,340 5,613,070 Charges to Other Funds 0 (31,000) (31,000) 0 0
Total Interdepartmental Charges 5,728,340 5,937,560 5,937,560 5,484,340 5,613,070 Total Debt Service 1,366,848 2,560,000 1,380,000 1,543,000 1,563,000 Total Expenditures 87,910,260 97,506,180 96,326,180 87,836,900 90,558,110 Interfund Transfers 1,867,454 1,781,170 1,781,170 6,523,000 1,777,000 Total Uses of Funding $89,777,714 $99,287,350 $98,107,350 $94,359,900 $92,335,110 General Fund Expenditure Summary
95 105
I
PRIOR YEARS BUDGET AMOUNT $ 97,506,180 $ 87,836,900
Summary of changes:

Salary and Benefit Changes
Salaries, including part time and overtime 464,770 989,790 Benefits, including medical and retirement costs 898,310 273,770 Operational Increases
Police contract services 891,950 681,000
Fire contract and ambulance program (178,110) 429,100
Utilities (212,850) 73,160
Operating supplies 35,120 30,640
Recreation Class Instructors 62,710 -
Operational Decreases
Other contractual services (673,790) 5,530
Offshore sand study and other professional studies (1,559,960) - Maintenance (102,080) 29,430
Legal services 27,000 17,500
Animal Control (63,750) 40,790
Capital Outlay/Studies
Casa Romantica Improvements (2,557,630) -
Shoreline and opportunistic sand study (753,210) -
Montalvo & Riviera Beach Trail Bridges (234,170) -
Pedestrian Audible Warning System (685,950) -
Climate Action Plan (350,000) -
Urban Forest Management Plan (350,000) -
Other capital and major maintenance projects (1,059,590) (105,000) Debt Service Changes
Unfunded PERS Liability, including Section 115 contribution (1,017,000) 20,000 Interdepartmental Charges
General Liability Insurance charges 62,550 128,730
Fleet charges (126,010) -
Capital Equipment Replacement Charges (229,100) -
Information Technology Charges 398,580 -
Aggregate Change in Other Categories (2,041,230) 506,770 FISCAL YEAR BUDGETED EXPENDITURES $ 87,836,900 $90,558,110 FY 2026-27 FY 2027-28
General Fund Expenditure Overview
96 106
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel
Salaries, Regular Full Time $11,741,398 $13,597,460 13,597,460 $14,168,950 $15,135,130 Salaries, Regular Part Time 84,021 87,780 87,780 94,710 101,200 Salaries, Hourly Part Time 1,976,089 2,060,830 2,060,830 1,937,080 1,947,930 Premium Overtime, Regular 468,971 297,650 297,650 312,540 315,990 Premium Overtime, Part-Time 36,658 39,950 39,950 35,160 37,980 Accrued Leave Payoff 250,135 253,220 253,220 293,910 294,340 Assignment Pay 54,368 45,570 45,570 45,570 45,570
Auto Allowance 21,900 35,400 35,400 21,900 21,900
Travel Allowance 15,919 0 0 27,000 27,000
Phone Allowance 2,784 16,100 16,100 3,250 3,250
Educational Reimbursement 5,492 10,050 10,050 9,000 9,000 Bilingual Pay 4,421 4,700 4,700 6,320 6,370
FICA 743,728 842,850 842,850 858,780 912,520
Medicare 208,980 225,110 225,110 232,050 247,500
State Disability Insurance 141,612 153,680 153,680 184,990 197,060 A. D. & D. Insurance 2,206 2,550 2,550 2,690 2,700
Long Term Disability Insurance 35,018 43,120 43,120 42,530 41,490 State Unemployment Insurance 21,626 35,110 35,110 36,160 38,210 Workers' Compensation Insurance 299,753 319,130 319,130 316,730 334,260 Life Insurance 26,469 33,110 33,110 35,410 32,180
Medical Insurance 2,039,916 2,255,890 2,255,890 2,611,380 2,701,930 P.E.R.S. Retirement Premium 177,444 218,800 218,800 271,930 283,120 San Clemente Retirement Premium 1,100,766 1,300,450 1,300,450 1,336,850 1,409,260 Retirement Premium (LEGACY) 1,223,510 1,071,450 1,071,450 1,338,060 1,338,060 Retirement Premium (UAL) 828,650 872,570 872,570 957,740 957,740 Deferred Compensation 53,622 58,270 58,270 57,750 57,750 Deferred Compensation, Part Time 75,481 73,220 73,220 78,660 81,220 Total Personnel 21,640,937 23,954,020 23,954,020 25,317,100 26,580,660 Supplies
Office Supplies 74,096 79,000 79,000 78,650 77,950
Postage 68,790 140,820 140,820 86,520 86,520
Data Processing Supplies 0 2,500 2,500 0 0
Horticultural Supplies 26,654 32,290 32,290 29,140 32,290 Leadership Supplies 1,349 1,250 1,250 1,250 1,250
Medical Supplies 12,509 14,370 14,370 14,470 14,470
Chemical Supplies 133,481 76,830 76,830 139,100 148,890 Janitorial Supplies 54,730 60,670 60,670 61,930 63,560
Photographic Supplies 0 3,150 3,150 1,950 1,950
Protective Supplies 1,163 1,890 1,890 1,890 1,890
Educational Material 150 300 300 300 300
Books, Codes and Supplement 3,135 15,750 15,750 8,550 12,550 Office Furniture and Equipment 29,560 36,000 36,000 41,780 41,780 Small Tools and Equipment 40,992 48,620 48,620 48,000 48,000 Clothing and Uniforms 49,146 53,900 53,900 61,870 61,940 Service Awards 1,442 4,440 4,440 4,440 4,440
Operating Supplies 616,898 641,020 641,020 641,570 655,200 Concession Supplies 47,366 120,000 120,000 90,000 90,000 Street Signs 60,359 60,540 60,540 0 0
General Fund Expenditures By Line Item
97 107
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General Fund Expenditures By Line Item
Street Materials 46,147 46,000 46,000 46,000 46,000
Maintenance Supplies 188,276 189,790 189,790 189,700 194,900 Total Supplies 1,456,243 1,629,130 1,629,130 1,547,110 1,583,880 Contractual Services
Advertising 21,810 21,540 21,540 21,910 22,290
Legal Notices 20,851 38,750 38,750 38,750 36,750
Imaging 0 0 0 100,000 100,000
Printing and Binding 13,242 33,020 33,020 29,610 29,610 Travel and Training 80,619 112,050 112,050 125,240 123,370 Required Licensing Certification 6,928 9,840 9,840 8,700 8,880 Mileage 1,193 4,520 4,520 4,310 4,310
Code Updating Service 12,724 13,000 13,000 13,000 63,000 Property Insurance 363,158 441,440 441,440 393,570 451,950 OCFA Contractual Facilities Maint 50,070 46,090 46,090 45,000 45,000 Data Lines 1,608 1,710 1,710 1,700 1,700
Telephone 6,237 5,100 5,100 5,100 5,100
Natural Gas 172,159 252,510 252,510 187,420 192,540
Electricity 1,655,333 1,664,140 1,664,140 1,638,340 1,674,890 Caltrans Electricity 12,233 11,260 11,260 11,570 11,880 404 Bahia Electricity 185 520 520 210 210
Water 832,655 979,840 979,840 858,980 890,160
Maintenance of Buildings 382,778 409,410 409,410 419,470 430,220 Maintenance of Restrooms 194,150 189,880 189,880 203,900 196,830 Maintenance of Beaches 280,198 333,060 333,060 319,700 319,700 Maintenance of Landscaping 2,520,974 2,541,050 2,541,050 2,650,770 2,641,620 Maintenance of Trees 475,870 536,630 536,630 389,540 399,420 Beach Cleaning 16,000 16,000 16,000 16,000 16,000
Maintenance of Office Equipment 1,495 5,730 5,730 3,950 3,950 Maintenance of Auto Equipment 8,821 8,450 8,450 8,800 8,850 Maintenance of Operating Equipment 76,426 96,500 96,500 82,260 82,260 Maintenance of Computer Hardware 0 1,000 1,000 0 0
Maintenance of Computer Software 185,427 165,600 165,600 132,170 133,880 Maintenance of Radio Equipment 68,700 82,500 82,500 83,850 86,470 Maintenance of Other Facilities 1,812,716 2,867,380 2,867,380 788,310 803,030 Graffiti Removal 84,784 91,700 91,700 78,700 84,700
Graffiti Administration 41,200 36,000 36,000 36,000 36,000 Contracted Custodial Service 293,604 310,470 310,470 341,770 341,690 Center Striping/Markings 60,131 100,000 100,000 75,000 75,000 Engineering Services (857,013) (1,070,000) (1,070,000) (1,070,000) (1,070,000) SFR Plan Check 85,669 60,000 60,000 65,000 65,000
Clerical Services 18,186 61,000 61,000 31,500 31,500
Accounting and Auditing 26,478 91,830 91,830 75,700 80,700 Bank Merchant Fees 363,969 300,000 300,000 375,680 375,680 Brokers Commissions 75,795 0 0 0 0
Fire Contract Services 11,743,322 12,271,770 12,271,770 12,087,700 12,510,770 OCFA Vehicle Replacement 189,294 194,970 194,970 200,930 206,960 Ambulance Program 2,059,431 2,081,770 2,081,770 2,282,580 2,410,710 98 108
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General Fund Expenditures By Line Item
Crossing Guards 291,836 357,450 357,450 320,630 314,630 Police Contract Services 20,619,874 21,808,050 21,808,050 22,700,000 23,381,000 Parking Citation Processing 97,432 130,300 130,300 135,300 135,300 Citizen Academy - Police 0 1,550 1,550 1,550 1,550
Legal Services - Retainer 374,518 400,000 400,000 412,000 424,500 Legal - Contingency 0 110,000 110,000 100,000 100,000
Other Legal Services 481,089 522,500 522,500 547,500 552,500 Medical Examinations 27,533 26,900 26,900 26,900 26,900 Investigative Services 101,893 28,550 28,550 36,000 36,000 Professional Services 539,850 601,510 601,510 577,900 577,900 Accessibility Trainings 499 0 0 20,500 20,500
Professional Studies 442,413 1,559,960 1,559,960 0 0
Rental of Land 50,453 54,300 54,300 41,500 41,500
Rental of Equipment 9,269 14,340 14,340 13,300 13,300
Rental of Uniforms 4,815 6,370 6,370 4,570 4,570
Animal Control and Shelter 921,780 966,440 966,440 919,540 960,330 Landscape Rodent Control 34,853 44,850 44,850 28,000 28,000 Contractual Services 1,502,508 2,281,320 2,281,320 1,530,670 1,533,670 Temporary Services 22,725 0 0 0 0
Sidewalk Pressure Wash 119,606 103,860 103,860 106,330 103,860 Inspection Services 0 60,000 60,000 95,000 95,000
Total Contractual Services 49,102,356 54,496,280 54,496,280 50,779,880 52,283,590 Other Charges
Court Costs 0 80 80 80 80
Wellness Program 7,022 9,000 9,000 6,910 6,910
Dues and Subscriptions 101,912 107,110 107,110 100,780 100,980 Property Taxes 3,703 6,400 6,400 10,000 10,000
Other Taxes 17,687 12,000 12,000 14,000 14,000
Licenses and Permits 8,346 13,830 13,830 14,000 14,000
Boards & Commissions Expense 1,700 500 500 500 500
Special Meetings and Events 94,948 89,770 89,770 92,290 98,160 Fourth of July Celebration 43,689 54,800 54,800 74,940 74,940 City General Special Events (1,140) 0 0 0 0
Election Expenses 141,751 0 0 133,260 0
Recreation Special Event Expenses 104,537 109,000 109,000 111,680 111,860 Recreation Contract Class Instructors 948,324 1,078,250 1,078,250 1,140,960 1,140,960 Community Relations Expense (4,800) 1,800 1,800 1,800 2,000 Volunteer Program Expenses 4,101 4,160 4,160 6,420 6,420 Crime Prevention 954 1,500 1,500 1,500 1,500
Character Counts 0 500 500 500 500
Parent Project 0 250 250 250 250
Trauma Intervention Program 8,328 8,090 8,090 9,000 9,000 Downtown Business Assoc Subsidy 34,000 34,000 34,000 34,000 34,000 Tourist & Conv. Bureau Subsidy 0 2,000 2,000 0 0
Marine Unit Support 16,851 17,500 17,500 17,500 17,500
Refund of Prior Year Revenues 0 1,000 1,000 0 0
Other Operating Expense 8,985 10,200 10,200 10,100 10,350 Contingency Reserve 0 6,900 6,900 15,000 15,000
Total Other Charges 1,540,898 1,568,640 1,568,640 1,795,470 1,668,910 99 109
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 General Fund Expenditures By Line Item
Capital Outlay
Improvements Other Than Bldg. 5,019,158 2,763,150 2,763,150 0 0 Tenant Improvements 40,288 0 0 0 0
Office Furniture and Equipment 0 0 0 120,000 0
General Machinery and Equipment 0 13,380 13,380 0 0
Automotive Equipment 78,500 3,800 3,800 0 15,000
Major Maintenance/Repairs 1,288,606 1,912,460 1,912,460 300,000 300,000 Sidewalk Repairs 117,905 432,760 432,760 150,000 150,000 Major Street Maintenance 380,360 600,000 600,000 550,000 550,000 Slurry Seal 149,821 250,000 250,000 250,000 250,000
Capital Study 0 0 0 0 0
One-time Studies/Costs 0 1,385,000 1,385,000 0 0
Total Capital Outlay 7,074,638 7,360,550 7,360,550 1,370,000 1,265,000 Interdepartmental Charges
Insurance Charges 1,768,500 1,768,500 1,768,500 1,831,050 1,959,780 Postage Charges 76,020 76,020 76,020 63,660 63,660
Duplicating Charges 59,820 59,820 59,820 66,740 66,740
EDMS Charges 30,250 30,250 30,250 0 0
Information Technology Charges 1,735,600 1,735,600 1,735,600 2,134,180 2,134,180 Communications Charges 116,360 116,360 116,360 138,650 138,650 Fleet Rental Charges 1,145,850 1,376,070 1,376,070 1,250,060 1,250,060 Capital Equipment Replacement 229,100 229,100 229,100 0 0 Park Asset Replacement Charge 220,000 230,000 230,000 0 0 Facilities Maintenance Replacement 346,840 346,840 346,840 0 0 Charges to Other Funds 0 (31,000) (31,000) 0 0
Total Interdepartmental Charges 5,728,340 5,937,560 5,937,560 5,484,340 5,613,070 Debt Service
Unfunded PERS Liability 1,366,848 2,560,000 1,380,000 1,543,000 1,563,000 Total Debt Service 1,366,848 2,560,000 1,380,000 1,543,000 1,563,000 Interfund Transfers
Transfer to 2106 Gas Tax Fund 15,000 55,200 55,200 23,000 27,000 Transfer to St. Improvement Fund 500,000 500,000 500,000 0 0 Transfer To Accrued Leave Fund 200,000 0 0 0 0
Transfer to Facilities Maintenance 400,000 400,000 400,000 0 0 Transfer to Other Funds 752,454 825,970 825,970 6,500,000 1,750,000 Total Interfund Transfers 1,867,454 1,781,170 1,781,170 6,523,000 1,777,000 Total Uses of Funding $89,777,714 $99,287,350 $98,107,350 $94,359,900 $92,335,110 100
110
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 City Council/City Manager /Economic Dev
City Council 105,260 127,630 127,630 172,930 177,120
Cable Programming 26,851 33,850 33,850 27,500 27,560
City Manager 992,050 1,103,200 1,103,200 1,120,910 1,160,640 Economic Development 241,439 141,230 141,230 0 0
Total City Council/City Manager/Economic Dev $1,365,600 $1,405,910 $1,405,910 $1,321,340 $1,365,320 City General
Social Services 16,851 20,900 20,900 20,270 20,270
City General 5,882,536 7,087,120 5,907,120 10,673,060 6,167,660 Total City General $5,899,387 $7,108,020 $5,928,020 $10,693,330 $6,187,930 City Clerk
Council Related Services 837,116 841,970 841,970 864,080 933,980 Elections 155,175 24,250 24,250 149,590 14,330
Total City Clerk $992,291 $866,220 $866,220 $1,013,670 $948,310 Finance & Administrative Services (F&AS)
Financial Services 1,182,896 1,419,960 1,419,960 1,613,960 1,685,250 Utility Billing & Cashiering 933,961 1,032,940 1,032,940 1,057,230 1,095,170 Business Licensing 163,999 265,520 265,520 234,880 241,660 Purchasing 148,834 164,770 164,770 35,450 35,450
Human Resources Administration 774,124 809,260 809,260 817,760 867,110 Labor Relations 92,047 35,400 35,400 32,850 32,850
Employee Training 4,097 1,750 1,750 6,700 6,950
Finance & Admin. Services Administration 471,406 489,820 489,820 609,680 645,190 Cash Management/Treasury 105,312 103,380 103,380 119,080 119,080 Total Finance & Administrative Services $3,876,676 $4,322,800 $4,322,800 $4,527,590 $4,728,710 Police Services
Police Contract Services 22,513,439 23,803,290 23,803,290 24,795,560 25,484,030 Local Police Services 43,833 40,090 40,090 45,940 46,690 RSVP Support Services 9,785 14,100 14,100 16,300 16,800 Total Police Services $22,567,057 $23,857,480 $23,857,480 $24,857,800 $25,547,520 Fire Services
Fire Contract Services 12,590,806 13,120,950 13,120,950 13,015,300 13,453,550 Ambulance Services 2,206,551 2,209,770 2,209,770 2,432,580 2,565,710 Total Fire Services $14,797,357 $15,330,720 $15,330,720 $15,447,880 $16,019,260 Community Development
Building Administration 1,362,704 1,739,840 1,739,840 1,788,800 1,861,780 Building Inspection 408,412 626,500 626,500 575,040 597,990 Current Planning 1,875,703 3,569,160 3,569,160 1,781,270 1,860,220 Commission, Boards & Committee Support 18,972 37,730 37,730 29,140 29,140 Planning Administration 384,896 518,900 518,900 452,890 478,430 Community Development Administration 928,363 1,362,300 1,362,300 1,089,220 1,137,770 Emergency Planning 144,531 254,060 254,060 223,940 234,050 Code Compliance 1,170,975 1,408,410 1,408,410 1,299,600 1,347,070 Weed Abatement 142,600 396,060 396,060 256,060 256,060
Park Ranger 622,875 770,120 770,120 760,560 803,140
Total Community Development $7,060,031 $10,683,080 $10,683,080 $8,256,520 $8,605,650 General Fund Summary by Department
101
111
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Public Works
Development Engineering 616,139 678,380 678,380 723,250 743,920 Engineering Inspection 426,545 438,300 438,300 462,800 478,660 Traffic 604,775 617,310 617,310 647,860 675,980
Design & General Engineering 260,349 168,250 168,250 283,500 350,420 Streets Engineering 678,124 788,070 788,070 848,020 891,430 Major Street Maintenance 648,085 1,296,230 1,296,230 963,470 963,470 Public Works Administration 1,906,036 2,974,190 2,974,190 923,350 960,340 Traffic Signals 1,297,211 1,261,150 1,261,150 1,190,150 1,227,580 Traffic Maintenance 239,100 511,470 511,470 415,390 427,860 Maintenance Services Administration 944,531 999,320 999,320 1,026,130 1,067,790 Street Maintenance and Repair 791,586 922,780 922,780 918,840 947,410 Senior Citizen Facility 54,294 85,850 85,850 54,170 55,940 Parking Maintenance 226,974 226,760 226,760 231,150 232,230 Facilities Maintenance 2,727,814 4,388,140 4,388,140 2,684,270 2,754,440 Street Lighting 672,046 579,490 579,490 613,440 620,350 Trail Maintenance 278,877 365,660 365,660 273,950 276,040 Street Median & Trees 498,167 914,310 914,310 417,890 428,460 Streetscapes 905,949 1,031,480 1,031,480 890,160 892,530 Park Maintenance 3,853,178 4,301,660 4,301,660 3,783,920 3,822,000 Beach Maintenance 6,345,432 3,344,040 3,344,040 703,420 713,140 Parks & Beach Maint. Admin. 588,752 701,430 701,430 666,230 683,840 Total Public Works $24,563,964 $26,594,270 $26,594,270 $18,721,360 $19,213,830 Marine Safety
Operations & Rescue 2,143,974 2,201,340 2,201,340 2,195,000 2,306,700 Prevention & Education 105,886 142,850 142,850 144,880 148,160 Total Marine Safety $2,249,860 $2,344,190 $2,344,190 $2,339,880 $2,454,860 Beaches, Parks & Recreation (BP&R)
Ole Hanson Beach Club (OHBC) 249,008 253,200 253,200 623,640 512,710 Community Center 566,754 612,870 612,870 573,710 587,690 Community Services 1,302,596 1,443,470 1,443,470 1,404,970 1,426,960 Aquatics 1,580,465 1,469,590 1,469,590 1,586,250 1,643,210 VH Sports Field/SC Aquatics Facility 974,509 1,048,090 1,048,090 899,160 921,120 Sports Field Operations 498,878 644,910 644,910 651,790 667,280 Recreation Program/Events 742,440 811,920 811,920 846,080 876,640 Beaches, Parks & Recreation Adminstration 490,841 490,610 490,610 594,930 628,110 Total Beaches, Parks & Recreation $6,405,491 $6,774,660 $6,774,660 $7,180,530 $7,263,720 Total: $89,777,714 $99,287,350 $98,107,350 $94,359,900 $92,335,110 General Fund Summary by Department
102
112
General Government
Department Overview:

The City’s General Government includes the City Council, City Manager, and City Clerk. The City Council, elected by San Clemente residents, serves as the legislative body responsible for establishing public policy, approving programs, and allocating financial resources to meet community needs.

The City Manager’s Office is integral in coordinating interdepartmental projects, managing the budget, and community engagement. The office ensures long term sustainability and operational efficiency while implementing City Council policies, investing in cost effective services, and fostering innovation that reflects the community’s core values.

The General Government Department also encompasses the Office of the City Clerk, which serves as the City’s primary custodian of records. The City Clerk coordinates agenda preparation and public noticing for all public meetings, and administers municipal elections in accordance with statutory requirements.

Shading indicates contracted services
Citizens of
San Clemente
City Manager
Direct City Operations
Implement Council Policy
Community Relations
Intergovernmental Relations
City Attorney
City General
Social Services
City Administration
Civic Services
City Clerk
Conduct Elections
Research & Records
Management
Legal Advertising & Bids
FPPC Filing Officer
Council-Related Services
City Council
Establish Policy
Legislative Process
External Committee
Representation
103
113
General Government
Department Overview:

The City's General Government includes the City Council, City Manager, and City Clerk. The City Council, elected by San Clemente residents, serves as the legislative body responsible for establishing public policy, approving programs, and allocating financial resources to meet community needs.

The City Manager's Office is integral in coordinating interdepartmental projects, managing the budget, and community engagement. The office ensures long term sustainability and operational efficiency while implementing City Council policies, investing in cost effective services, and fostering innovation that reflects the community's core values.

The General Government Department also encompasses the Office of the City Clerk, which serves as the City's primary custodian of records. The City Clerk coordinates agenda preparation and public noticing for all public meetings, and administers municipal elections in accordance with statutory requirements.

Citizens of I San Clemente
I
City Council
Establish Policy
Legislative Process
External Committee
Representation
I City Attorney I
I
City Manager
Direct City Operations
Implement Council Policy
Community Relations
Intergovernmental Relations
I
I I
City Clerk City General
Conduct Elections Social Services
Research & Records City Administration Management
Legal Advertising & Bids Civic Services
FPPC Filing Officer
Council-Related Services
.__ _____ __.! Shading indicates contracted services
I
Actual Amended Bud. Adjusted Budget Budget
Department Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 City Council 132,111 161,480 161,480 200,430 204,680
City Manager 992,050 1,103,200 1,103,200 1,120,910 1,160,640 City General 4,031,933 5,326,850 4,146,850 4,170,330 4,410,930 City Clerk 992,291 866,220 866,220 1,013,670 948,310
Economic Development 241,439 141,230 141,230 0 0
General Government Budget 6,389,824 7,598,980 6,418,980 6,505,340 6,724,560 Transfers-City General 1,867,454 1,781,170 1,781,170 6,523,000 1,777,000 Total General Government Budget $8,257,278 $9,380,150 $8,200,150 $13,028,340 $8,501,560 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 1,474,311 1,603,970 1,603,970 1,693,500 1,757,090 Supplies 25,216 28,300 28,300 26,350 26,650
Contractual Services 2,507,473 2,668,480 2,668,480 2,430,400 2,586,390 Other Charges 340,220 200,900 200,900 341,920 212,530
Interdepartmental Charges 1,916,540 1,917,330 1,917,330 2,013,170 2,141,900 Total Program Budget 6,263,760 6,418,980 6,418,980 6,505,340 6,724,560 Transfers and Debt 1,867,454 2,961,170 1,781,170 6,523,000 1,777,000 Non-Operating Expenditures/Transfers Capital/One-time Studies 126,064 0 0 0 0 Total General Government Budget $8,257,278 $9,380,150 $8,200,150 $13,028,340 $8,501,560 Personnel Summary 8.00 8.00 8.00 8.00 8.00

General Government
Department Summary
City General Summary
City
Council

3.1%
City
Manager

17.2%
City Clerk

15.6%
City
General

64.1%
FY 2027
City
Council

3.0%
City
Manager

17.3%
City Clerk

14.1%
City
General

65.6%
FY 2028
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Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Full-Time Salaries $901,453 $951,340 $951,340 $1,018,350 $1,068,780 Part-Time Salaries 49,612 54,840 54,840 51,470 51,490
Overtime 6,455 10,700 10,700 9,700 9,700
Benefits 516,791 587,090 587,090 613,980 627,120
Total Personnel 1,474,311 1,603,970 1,603,970 1,693,500 1,757,090 Office Supplies 21,450 20,250 20,250 20,300 19,600
Other Operating Supplies 3,766 8,050 8,050 6,050 7,050
Total Supplies 25,216 28,300 28,300 26,350 26,650
Administrative 14,749 18,750 18,750 18,550 68,550
Travel and Training 20,432 32,270 32,270 30,470 30,790
Property Insurance 363,158 441,440 441,440 393,570 451,950 Maintenance 91,259 51,150 51,150 36,000 36,000
Legal Services 550,248 678,500 678,500 693,000 703,500
Rental 32,400 37,800 37,800 0 0
Animal Control 921,780 966,440 966,440 919,540 960,330
Other Contractual Services 513,447 442,130 442,130 339,270 335,270 Total Contractual Services 2,507,473 2,668,480 2,668,480 2,430,400 2,586,390 Miscellaneous Charges 90,260 83,560 83,560 85,520 85,720 Promotional Charges 91,358 89,540 89,540 90,640 94,310
Election Expenses 141,751 0 0 133,260 0
Social Service Charges 16,851 20,900 20,900 17,500 17,500 Contingency Reserve 0 6,900 6,900 15,000 15,000
Total Other Charges 340,220 200,900 200,900 341,920 212,530 Improvements Other Than Bldg. 40,288 0 0 0 0
Major Maintenance 85,776 0 0 0 0
Total Capital Outlay 126,064 0 0 0 0
Interdepartmental Charges 1,916,540 1,917,330 1,917,330 2,013,170 2,141,900 Total Interdepartmental Charges 1,916,540 1,917,330 1,917,330 2,013,170 2,141,900 Total Interfund Transfers 1,867,454 1,781,170 1,781,170 6,523,000 1,777,000 Total Debt Service 0 1,180,000 0 0 0
Total: $8,257,278 $9,380,150 $8,200,150 $13,028,340 $8,501,560 Significant Changes:

Personnel costs increase based on position changes in the previous budget, salary increases and benefit changes based on new thresholds for Social Security, State Disability, and other amounts.

Contractual services has line items decreasing including property insurance and contract services with some contract amounts being reduced, including the animal control and shelter and certain economic development costs.

Other charges fluctuate based on the cost for the election.

Transfers include amounts for Capital Improvements, support for trolley operations, and water quality support.

Total debt service decreases as a Section 115 contribution occurred in FY 2025-26 and is now assigned Fund Balance.

General Government
Department Summary
105
115
Purpose Statement
Legislative Services
• Develop strategic goals and objectives for the City.
• Establish priorities and direction for the City through policy development and the legislative process. • Adopt and monitor the annual operating and capital improvement budgets. • Provide input on regional, state and federal matters affecting San Clemente.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 City Council 105,260 127,630 127,630 172,930 177,120
Cable Programming 26,851 33,850 33,850 27,500 27,560
Total City Council Budget $132,111 $161,480 $161,480 $200,430 $204,680 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 68,690 84,990 84,990 80,930 81,080
Supplies 4,585 8,200 8,200 6,200 7,200
Contractual Services 10,840 16,150 16,150 16,150 16,150 Other Charges 13,016 17,160 17,160 25,260 28,360
Interdepartmental Charges 34,980 34,980 34,980 71,890 71,890 Total Program Budget 132,111 161,480 161,480 200,430 204,680 Capital/One-Time Studies 0 0 0 0 0
Total City Council Budget $132,111 $161,480 $161,480 $200,430 $204,680 Personnel Summary 0 0 0 0 0
(Mayor/Council Members are elected positions)
General Government
Legislative Division Summary
To establish civic leadership and provide direction in overseeing the business of the City, while being mindful of the needs, interests, and concerns of the citizens in an open and responsive manner. 106
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Purpose Statement
City Manager Department Services
• Operational excellence and responsibility for the administration of the budget. • Fulfill the City of San Clemente's Mission Statement. • Prudent fiscal policies and practices.
• Preservation of the community's high quality of life. • A balanced, inclusive, and open approach to policy-making and City leadership. • Economic vitality with an emphasis on small and local serving businesses.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 City Manager 992,050 1,103,200 1,103,200 1,120,910 1,160,640 Total City Manager Budget $992,050 $1,103,200 $1,103,200 $1,120,910 $1,160,640 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 783,011 879,890 879,890 912,140 948,000
Supplies 5,274 2,250 2,250 2,250 2,550
Contractual Services 164,037 181,930 181,930 119,400 122,400 Other Charges 7,178 6,580 6,580 40,580 41,150
Interdepartmental Charges 32,550 32,550 32,550 46,540 46,540 Total Program Budget 992,050 1,103,200 1,103,200 1,120,910 1,160,640 Non-Operating Expenditures Capital/One-Time Studies 0 0 0 0 0 Total City Manager Budget $992,050 $1,103,200 $1,103,200 $1,120,910 $1,160,640 Personnel Summary 4.00 4.00 4.00 4.00 4.00
General Government
City Manager Department Summary
To provide professional leadership in the administration and execution of policies and objectives formulated by City Council, as well as develop and recommend alternative solutions to community issues for council consideration. To plan and develop new programs to meet future needs of the City and prepare the annual budget. Finally, to foster community pride in City government through excellent customer service. 107
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Purpose Statement
City General Services
• Serve as a cost center for programs not directly assigned to a specific division. • Provide annual grants to social service programs.
• Provide as-needed grants to civic programs.
• Provide a mechanism to transfer General Fund monies to programs or projects outside of the General Fund.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Social Services 16,851 20,900 20,900 20,270 20,270
City Administration 4,015,082 5,305,950 4,125,950 4,150,060 4,390,660 City Administration-Transfers 1,867,454 1,781,170 1,781,170 6,523,000 1,777,000 Total City General Budget $5,899,387 $7,108,020 $5,928,020 $10,693,330 $6,187,930 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Supplies 7,092 5,500 5,500 6,000 6,000
Contractual Services 2,025,916 2,233,480 2,233,480 2,192,580 2,304,250 Other Charges 143,039 137,760 137,760 140,320 140,520
Interdepartmental Charges 1,770,110 1,770,110 1,770,110 1,831,430 1,960,160 Total Program Budget 3,946,157 4,146,850 4,146,850 4,170,330 4,410,930 Transfers 1,867,454 2,961,170 1,781,170 6,523,000 1,777,000 Debt/Pension Section 115 0 1,180,000 0 0 0
Capital/One-Time Studies 85,776 0 0 0 0
Total City General Budget $5,899,387 $8,288,020 $5,928,020 $10,693,330 $6,187,930 Personnel Summary 0 0 0 0 0
General Government
City General Department Summary
To provide a cost center to account for programs and costs not directly assigned to a specific division. These include social programs and administrative costs and one-time transfers. 108
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Purpose Statement
City Clerk Department Services
• Produce City Council agendas and packets as well as meeting minutes. • Ensure legal compliance with electoral and governmental regulations. • Process City contracts.
• Conduct regular and special municipal elections and process initiative and referendum petitions. • Preserve and maintain all City records and respond to public records requests. • Implement the Leadership San Clemente program.
• Serve as filing officer for Fair Political Practices Commision statements.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Council Related Services 837,116 841,970 841,970 864,080 933,980 Elections 155,175 24,250 24,250 149,590 14,330
Total City Clerk Budget $992,291 $866,220 $866,220 $1,013,670 $948,310 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 622,610 639,090 639,090 700,430 728,010
Supplies 7,964 12,200 12,200 11,900 10,900
Contractual Services 140,690 132,740 132,740 102,270 143,590 Other Charges 142,127 2,500 2,500 135,760 2,500
Interdepartmental Charges 78,900 79,690 79,690 63,310 63,310 Total Program Budget 992,291 866,220 866,220 1,013,670 948,310 Capital/One-Time Studies 0 0 0 0 0
Total City Clerk Budget $992,291 $866,220 $866,220 $1,013,670 $948,310 Personnel Summary 4.00 4.00 4.00 4.00 4.00
General Government
City Clerk Department Summary
To accurately record and carefully preserve and safeguard the legislative history of the City of San Clemente. To maximize timely access to City records and information. To facilitate the democratic electoral process in an impartial manner that conforms with State law.
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Purpose Statement
Economic Development Division Services
• Encourage employment
Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Economic Development 241,439 141,230 141,230 0 0
Total Economic Development Budget* $241,439 $141,230 $141,230 $0 $0 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 0 0 0 0 0
Supplies 301 150 150 0 0
Contractual Services 165,990 104,180 104,180 0 0
Other Charges 34,860 36,900 36,900 0 0
Total Program Budget 201,151 141,230 141,230 0 0
Capital/Capital Studies 40,288 0 0 0 0
Total Economic Development Budget* $241,439 $141,230 $141,230 $0 $0 Personnel Summary 0 0 0 0 0
*Note: These costs are now budgeted in the City Manager and other departments. • Local business support and retention.
• Maintain and improve tax related revenue.
• Economic diversification
General Government
Economic Development Department Summary
Develop and implement policies, programs, and activities that will stimulate business startup, facilitate the expansion of existing businesses, and encourage the location of new businesses in order to create new jobs, expand the City of San Clemente's economic base, and enhance the quality of life for the citizens of San Clemente. 110
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Shading indicates contracted services
Finance & Administrative Services
Department Overview:

The City’s Finance and Administrative Services Department consists of the Finance, Information Technology, Human Resources, Risk Management, Purchasing, Budget and City Treasurer Functions.

The Finance Department manages the City’s fiscal operations and maintains financial records in accordance with generally accepted accounting principles (GAAP) and all State and Federal requirements. Financial accountability to the public, accurate account record keeping, procurement, management of City debt and investments, development and monitoring of the budget, and annual Federal and State reporting are the core components of Finance.

The Human Resources and Risk Management Department supports a skilled, high quality workforce and protects City assets through effective risk mitigation, maintaining labor relations and negotiations, recruitments, and administration of risk management and safety programs.

The Information Technology Department delivers secure, reliable, and cost effective technology services supporting City operations and public service delivery. IT not only manages the computers, network infrastructure and data systems, but also ensures system reliability and cybersecurity.

City Manager
Chief Administrative Officer
Information Technology
Technology Planning and
Implementation
Cyber Security, Internet
and Email
Applications, Databases, and
Web Services
Server, Desktop and
Mobile Computing
Networking and
Communications
User Support & Training
Geographical Information
Systems Mapping & Land
Use Database
City Treasurer
(elected)
Investment & Debt
Administration
Citizens of
San Clemente
Human Resources
Recruitment & Selection
Classification &
Compensation
Labor Relations
Workers' Compensation
Benefits Administration
Staff Development,
Welfare, and Training
Risk Management
Retired Senior
Volunteer Program
Financial Services
Accounts Payable
Accounts Receivable
Payroll
General Accounting
Financial Planning
Budget,
including CIP
Financial Reporting
and Audit
Banking
Investment
Reporting
Business Services
Utility Billing
Business Licensing
Utility Rate Analysis
Central Cashiering
Finance
Purchasing
Fire Contract
Management
Police Contract
Management
Central Services
Purchasing
Contract Fleet
Services
Vehicle Maintenance &
Repair
Vehicle Acquisition
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Actual Amended Bud. Adjusted Budget Budget
Department Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 F&AS - Administration 576,718 593,200 593,200 728,760 764,270 Finance 2,429,690 2,883,190 2,883,190 2,941,520 3,057,530 Human Resources 870,268 846,410 846,410 857,310 906,910 Total F&AS Budget $3,876,676 $4,322,800 $4,322,800 $4,527,590 $4,728,710 Actual Amended Bud. Adjusted Budget Budget
F&AS Expenditure by Category FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 2,842,339 3,089,980 3,089,980 3,417,570 3,612,440 Supplies 84,582 156,950 156,950 102,580 102,580
Contractual Services 631,481 744,680 744,680 645,290 651,290 Other Charges 15,634 24,600 24,600 27,010 27,260
Interdepartmental Charges 302,640 306,590 306,590 335,140 335,140 Total Program Budget 3,876,676 4,322,800 4,322,800 4,527,590 4,728,710 Debt 0 0 0 0 0
Capital/Capital Studies 0 0 0 0 0
Total F&AS Budget $3,876,676 $4,322,800 $4,322,800 $4,527,590 $4,728,710 Personnel Summary 19.50 19.50 19.50 19.50 19.50
Key Initiatives
• Implement a new Enterprise ERP system to streamline and digitize current administrative and fiscal processes. This is a cross-departmental endeavor that involves IT, HR and Finance. • Launched a Citywide managerial and supervisory training program to strengthen leadership skills, support employee development and enhance workplace communication.
• Implement new General Accounting Standards Board standards for the City’s Annual Comprehensive Financial Report and financial statements.
• Continue strengthening transparent governance to build trust, increase community engagement, support economic vitality, and educate the community.

Finance & Administrative Services
Department Summary
Finance & Administrative Services Summary
F&AS -
Administration

16.1%
Finance

65.0%
Human Resources

18.9%
FY 2027
F&AS -
Administration

16.2%
Finance

64.7%
Human Resources

19.2%
FY 2028
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Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Full-Time Salaries $1,770,621 $1,989,150 $1,989,150 $2,120,370 $2,272,200 Part-Time Salaries 39,225 54,240 54,240 49,650 53,770
Overtime 2,628 1,200 1,200 11,200 11,200
Benefits 1,029,865 1,045,390 1,045,390 1,236,350 1,275,270 Total Personnel 2,842,339 3,089,980 3,089,980 3,417,570 3,612,440 Office Supplies 77,424 152,080 152,080 97,710 97,710
Other Operating Supplies 7,159 4,870 4,870 4,870 4,870
Total Supplies 84,583 156,950 156,950 102,580 102,580
Administrative 12,340 19,810 19,810 18,810 18,810
Travel and Training 10,798 17,220 17,220 20,260 20,260
Bank Merchant Fees 122,008 124,000 124,000 139,900 139,900 Maintenance 47,921 49,450 49,450 29,950 29,950
Accounting and Audit Services 26,477 91,830 91,830 75,700 80,700 Legal Services 0 10,000 10,000 0 0
Professional Services 245,201 193,750 193,750 202,250 202,250 Other Contractual Services 166,735 238,620 238,620 158,420 159,420 Total Contractual Services 631,480 744,680 744,680 645,290 651,290 Miscellaneous Charges 12,252 17,270 17,270 18,310 18,560 Promotional Charges 3,382 7,330 7,330 8,700 8,700
Total Other Charges 15,634 24,600 24,600 27,010 27,260
Improvements Other Than Bldg. 0 0 0 0 0
Total Capital Outlay 0 0 0 0 0
Interdepartmental Charges 302,640 306,590 306,590 335,140 335,140 Total Interdepartmental Charges 302,640 306,590 306,590 335,140 335,140 Total Interfund Transfers 0 0 0 0 0
Total Debt Service 0 0 0 0 0
Total: $3,876,676 $4,322,800 $4,322,800 $4,527,590 $4,728,710 Significant Changes:

Personnel costs increase due to FY 2025-26 staffing changes, anticipated staffing levels and overall benefit cost changes.

Office supplies decrease due to lower postage required for legislative requirements from COVID and the more electronic delivery of customers bills and other notices.

Contractual services decrease due to implementation of the business license software and lower amounts for clerical, legal, and various other contract services.

Interdepartmental charges increase mostly due to Information Techology charges.

Finance & Administrative Services
Department Summary
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Purpose Statement
Finance & Administrative Services Administration Services:
• Direct the Finance, Human Resources, and Information Technology divisions. • Oversee development of the annual operating and capital improvement budgets. • Manage the City’s investment portfolio in accordance with State and City ordinances and policies. • Develop and implement the Information Technology Strategic Plan.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 F&AS - Administration 471,406 489,820 489,820 609,680 645,190 Treasurer 105,312 103,380 103,380 119,080 119,080
Total F&AS - Administration Budget $576,718 $593,200 $593,200 $728,760 $764,270 Actual Amended Bud. Adjusted Budget Budget
Expenditure by Category FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 456,594 471,550 471,550 589,910 625,420
Supplies 2,917 2,800 2,800 2,300 2,300
Contractual Services 102,320 98,600 98,600 113,100 113,100 Other Charges 1,847 6,420 6,420 7,820 7,820
Interdepartmental Charges 13,040 13,830 13,830 15,630 15,630 Total Program Budget 576,718 593,200 593,200 728,760 764,270 Capital/Capital Studies 0 0 0 0 0
Total F&AS - Administration Budget $576,718 $593,200 $593,200 $728,760 $764,270 Personnel Summary 2.00 2.00 2.00 2.00 2.00
Finance & Administrative Services
Finance & Administrative Services Administration Summary To provide services and to act as a consultant to our departments (internal customers) as well as to the citizens of our City (external customers). Additionally, oversight of all financial functions is provided to assure our stakeholders that public funds are expended in accordance with legally established appropriations and fiscal policies. 114
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Purpose Statement
Finance Services
• Maintain financial oversight and administration of all City funds and accounts. • Manage the general accounting functions.
• Oversee and process business licensing.
• Manage the billing and collection of the City’s utility accounts. • Prepare and monitor operating and capital budgets.
• Direct the purchasing and contract administration activities.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Financial Services 1,182,896 1,419,960 1,419,960 1,613,960 1,685,250 Utility Billing & Cashiering 933,961 1,032,940 1,032,940 1,057,230 1,095,170 Business Licensing 163,999 265,520 265,520 234,880 241,660 Purchasing 148,834 164,770 164,770 35,450 35,450
Total Finance Budget $2,429,690 $2,883,190 $2,883,190 $2,941,520 $3,057,530 Actual Amended Bud. Adjusted Budget Budget
Expenditure by Category FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 1,796,123 2,000,190 2,000,190 2,172,040 2,282,050 Supplies 76,135 148,100 148,100 94,230 94,230
Contractual Services 308,989 481,580 481,580 398,190 404,190 Other Charges 4,643 7,150 7,150 6,890 6,890
Interdepartmental Charges 243,800 246,170 246,170 270,170 270,170 Total Program Budget 2,429,690 2,883,190 2,883,190 2,941,520 3,057,530 Debt 0 0 0 0 0
Capital/Capital Studies 0 0 0 0 0
Total Finance Budget $2,429,690 $2,883,190 $2,883,190 $2,941,520 $3,057,530 Personnel Summary 14.00 14.00 14.00 14.00 14.00
Finance & Administrative Services
Finance Division Summary
To provide financial oversight, reporting, and general accounting services for all City programs, including financial reporting, financial forecasting, budgeting, cashiering, purchasing, contract administration, utility billing, and business license activities.
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Purpose Statement
Human Resources Services
• Recruit and retain a skilled and qualified work force. • Management of a City-wide training program using in-house staff and outside subject matter experts. • Administration of the City’s employee benefits programs, including medical, dental, life, disability insurance, and other City retirement and health & welfare programs. • Administer the risk management programs, including liability, workers' compensation, insurance and safety.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Human Resources Admin. 774,124 809,260 809,260 817,760 867,110 Labor Relations 92,047 35,400 35,400 32,850 32,850
Employee Training 4,097 1,750 1,750 6,700 6,950
Total Human Resources Budget $870,268 $846,410 $846,410 $857,310 $906,910 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 589,622 618,240 618,240 655,620 704,970
Supplies 5,530 6,050 6,050 6,050 6,050
Contractual Services 220,172 164,500 164,500 134,000 134,000 Other Charges 9,144 11,030 11,030 12,300 12,550
Interdepartmental Charges 45,800 46,590 46,590 49,340 49,340 Total Program Budget 870,268 846,410 846,410 857,310 906,910 Capital/Capital Studies 0 0 0 0 0
Total Human Resources Budget $870,268 $846,410 $846,410 $857,310 $906,910 Personnel Summary 3.50 3.50 3.50 3.50 3.50
Finance & Administrative Services
Human Resources Division Summary
To provide Human Resource services to the City departments, employees and the public. This includes administering the functions of recruitment and selection, classification and compensation, employee benefits, labor relations, employee training, workers' compensation, and risk management.
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Shading indicates contracted services
Public Safety
Department Overview:

Public Safety continues to be the City’s highest priority. This includes Police, Fire Services, and Marine Safety. Police Services are primarily provided through a contract with the Orange County Sheriff’s Department, along with additional contracts for crossing guards, citation processing, and other support functions. Police Services deliver law enforcement, investigations, traffic enforcement, crime prevention, forensic services, and public information and education.

Fire and Emergency Services are contracted through the Orange County Fire Authority, with ambulance transport provided by Falck Ambulance Services. Fire Services handle fire protection and rescue, fire investigations, hazardous materials response, paramedic services, ambulance dispatch and transport, and public education.

Marine Safety protects the public along the coastline by providing rescue response, medical aid, preventative enforcement, and public awareness programs such as the Junior Lifeguard Program.

Chief of Police Services Captain
City Manager
Contract Police Services
Patrol
Traffic
Investigation
Crime Prevention
Records
Volunteer Chaplains
Orange County Fire Authority
Division 3 Chief
Contract Fire Services
Operations
Fire Suppression
Fire Prevention
Paramedic Response
Ambulance Dispatch
Ambulance Transport (Falck)
Planning & Development
Investigations
Community Education
Marine Safety
Water Observation
Rescue Response &
Medical Aid
Environmental
Management
Junior Lifeguard Program
Ocean Safety Public
Education
Marine Safety Chief
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Actual Amended Bud. Adjusted Budget Budget
Department Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Police 22,567,057 23,857,480 23,857,480 24,857,800 25,547,520 Fire 14,797,357 15,330,720 15,330,720 15,447,880 16,019,260 Marine Safety 2,249,860 2,344,190 2,344,190 2,339,880 2,454,860 Total Public Safety $39,614,274 $41,532,390 $41,532,390 $42,645,560 $44,021,640 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 1,775,042 1,846,750 1,846,750 2,033,730 2,134,610 Supplies 74,826 89,200 89,200 93,020 92,890
Contractual Services 35,581,112 37,451,490 37,451,490 38,388,920 39,626,850 Other Charges 25,047 21,580 21,580 24,080 26,480
Interdepartmental Charges 653,470 609,260 609,260 562,810 562,810 Total Program Budget 38,109,497 40,018,280 40,018,280 41,102,560 42,443,640 Debt 1,366,848 1,380,000 1,380,000 1,543,000 1,563,000
Capital/Capital Studies 137,929 134,110 134,110 0 15,000 Total Public Safety Budget $39,614,274 $41,532,390 $41,532,390 $42,645,560 $44,021,640 Personnel Summary 103.00 103.00 103.00 103.00 103.00
Key Initiatives
• Improve emergency response times while setting higher performance benchmarks for police and fire services. • Implement targeted service upgrades and operational improvements to deliver a higher level of public safety to residents. • Pursue innovative technology solutions to enhance emergency response, communication, and real-time decision-making. • Expand regional staffing, equipment, and mutual aid resources to keep pace with continued growth in South Orange County. • Strengthen wildfire and disaster resilience through proactive planning, mitigation, and community preparedness efforts. • Capital Improvement Program (CIP) project to develop a centralized Emergency Operations Center at City Hall to serve as the primary coordination hub during emergencies and disasters. • Support OCFA's development of a regional Wildfire Resource Center to improve deployment speed and coordination of firefighting personnel and equipment in the South Orange County Region. • Deployment of a HeloPod along Ridgeline Trail to facilitate aerial firefighting operations.

Public Safety
Department Summary
Public Safety Summary
Police
Services

58.3%
Fire
Services

36.2%
Marine
Safety

5.5%
FY 2027
Police
Services

58.0%
Fire
Services

36.4%
Marine
Safety

5.6%
FY 2028
118
128
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Full-Time Salaries $620,835 $682,600 $682,600 $755,180 $808,060 Part-Time Salaries 627,483 630,100 630,100 645,880 661,700 Overtime 77,552 59,950 59,950 67,360 73,630
Benefits 449,172 474,100 474,100 565,310 591,220
Total Personnel 1,775,042 1,846,750 1,846,750 2,033,730 2,134,610 Office Supplies 5,350 5,080 5,080 4,730 4,730
Other Operating Supplies 63,188 76,670 76,670 80,540 80,410 Maintenance Supplies 6,288 7,450 7,450 7,750 7,750
Total Supplies 74,826 89,200 89,200 93,020 92,890
Administrative 1,881 2,500 2,500 2,800 2,800
Travel and Training 3,919 8,130 8,130 9,970 7,680
Utilities 58,972 57,630 57,630 57,020 57,340
Maintenance 82,086 100,550 100,550 104,150 106,820
Security Services 0 0 0 0 0
Fire Contract Services 11,932,616 12,466,740 12,466,740 12,288,630 12,717,730 Ambulance Program 2,059,431 2,081,770 2,081,770 2,282,580 2,410,710 Police Contract Services 20,619,874 21,808,050 21,808,050 22,700,000 23,381,000 Public Safety 389,267 459,300 459,300 457,480 451,480
Legal Services 134,853 144,000 144,000 146,500 146,500
Other Contractual Services 298,213 322,820 322,820 339,790 344,790 Total Contractual Services 35,581,112 37,451,490 37,451,490 38,388,920 39,626,850 Miscellaneous Charges 1,240 830 830 830 830
Promotional Charges 22,854 18,500 18,500 21,000 23,400
Social Service Charges 953 2,250 2,250 2,250 2,250
Total Other Charges 25,047 21,580 21,580 24,080 26,480
Improvements Other Than Bldg. 0 0 0 0 0
Machinery and Equipment 0 13,480 13,480 0 15,000
Major Maintenance 137,929 120,630 120,630 0 0
Total Capital Outlay 137,929 134,110 134,110 0 15,000
Interdepartmental Charges 653,470 609,260 609,260 562,810 562,810 Total Interdepartmental Charges 653,470 609,260 609,260 562,810 562,810 Total Interfund Transfers 0 0 0 0 0
Total Debt Service 1,366,848 1,380,000 1,380,000 1,543,000 1,563,000 Total: $39,614,274 $41,532,390 $41,532,390 $42,645,560 $44,021,640 Significant Change:

Personnel costs include staffing for the full-time Marine Safety Supervisor and Officer positions based on the Class and Compensation levels and the benefits associated with those prior year changes.

Contract costs increase by over $2 million from the FY 2025-26 to the FY 2027-28 budget. The OCFA fire contract budget is $12.3 million and $12.7 million for the base contract and vehicle costs, changing from the FY 2025-26 budget of $12.5 million. The OCSD contract is budgeted at $22.7 million and $23.4 million, increasing from the FY 2025-26 budget of $21.8 million budget.

Total Debt Service increases for past Police and Fire CalPERS pension costs due to an amortization change.

Public Safety
Department Summary
119
129
Purpose Statement
Police Services
• Provide law enforcement services to the public.
• Protect lives and property.
• Initiate and maintain crime prevention programs.
• Investigate and solve crimes.
• Provide educational programs to the public.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Police Services 22,513,439 23,803,290 23,803,290 24,795,560 25,484,030 Local Police Services 43,833 40,090 40,090 45,940 46,690 RSVP Support Services 9,785 14,100 14,100 16,300 16,800 Total Police Services Budget $22,567,057 $23,857,480 $23,857,480 $24,857,800 $25,547,520 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Supplies 13,749 14,340 14,340 17,540 16,340
Contractual Services 21,374,323 22,699,720 22,699,720 23,589,020 24,266,690 Other Charges 23,807 20,750 20,750 23,250 25,650
Interdepartmental Charges 395,830 350,070 350,070 365,840 365,840 Total Program Budget 21,807,709 23,084,880 23,084,880 23,995,650 24,674,520 Debt 759,348 772,500 772,500 862,150 873,000
Capital/Capital Studies 0 100 100 0 0
Total Police Services Budget $22,567,057 $23,857,480 $23,857,480 $24,857,800 $25,547,520 Personnel Summary* 58.00 58.00 58.00 58.00 58.00
*Direct FTE's based on Police Contract
Public Safety
Police Services Summary
To provide responsive, professional law enforcement service to all people in San Clemente. Police services includes the Orange County Sheriff's Department (OCSD) contract and other contractors used for public safety related activities, including crossing guards and other services to support police operations. RSVP support services is included as a separate program.
120
130
Purpose Statement
Fire Services
• Provide safety and emergency services to the public.
• Provide paramedic services.
• Provide ambulance dispatch and transport services.
• Provide fire investigation services.
• Respond to hazardous materials incidents.
• Provide fire prevention, public information and educational programs.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Fire Contract Services 12,590,806 13,120,950 13,120,950 13,015,300 13,453,550 Ambulance Services 2,206,551 2,209,770 2,209,770 2,432,580 2,565,710 Total Fire Services Budget $14,797,357 $15,330,720 $15,330,720 $15,447,880 $16,019,260 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Contractual Services 14,189,237 14,722,600 14,722,600 14,766,210 15,328,440 Interdepartmental Charges 620 620 620 820 820
Total Program Budget $14,189,857 $14,723,220 $14,723,220 $14,767,030 15,329,260 Debt 607,500 607,500 607,500 680,850 690,000
Total Fire Services Budget $14,797,357 $15,330,720 $15,330,720 $15,447,880 $16,019,260 Personnel Summary 39.00 39.00 39.00 39.00 39.00
Public Safety
Fire Services Summary
To provide quality safety and emergency service in a timely and efficient manner. These services are contracted through the Orange County Fire Authority (OCFA) and Ambulance Services contract provider. 121
131
Purpose Statement
Marine Safety Services
• Provide water observation, rescue response, medical aid and law enforcement services. • Provide instructional water safety programs through the junior lifeguard, school education, community outreach and media programs.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Operations Rescue 2,143,974 2,201,340 2,201,340 2,195,000 2,306,700 Prevention and Education 105,886 142,850 142,850 144,880 148,160 Total Marine Safety Budget $2,249,860 $2,344,190 $2,344,190 $2,339,880 $2,454,860 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 1,775,042 1,846,750 1,846,750 2,033,730 2,134,610 Supplies 61,077 74,860 74,860 75,480 76,550
Contractual Services 17,552 29,170 29,170 33,690 31,720 Other Charges 1,240 830 830 830 830
Interdepartmental Charges 257,020 258,570 258,570 196,150 196,150 Total Program Budget $2,111,931 $2,210,180 $2,210,180 2,339,880 2,439,860 Capital/Capital Studies 137,929 134,010 134,010 0 15,000 Total Marine Safety Budget $2,249,860 $2,344,190 $2,344,190 $2,339,880 $2,454,860 Personnel Summary 6.00 6.00 6.00 6.00 6.00
Public Safety
Marine Safety Division Summary
To maximize the safety and well-being of visitors to San Clemente's beach and marine environment through comprehensive public education, preventive measures, and responsive emergency intervention. 122
132
Shading indicates contracted services
Community Development
Department Overview:

The City’s Community Development Department consists of Community Development Administration, Building, Planning, Park Ranger Program and Code Compliance divisions. This department oversees the City’s land use policies including zoning, building, subdivision, and environmental regulations to ensure orderly, sustainable growth.

The department manages advanced and current planning, building and safety, and code enforcement to support a well planned and thriving community. Community Development is responsible for the implementation of the San Clemente’s vision and policy as it relates to land development, housing, affordable housing development, construction and code enforcement.

Community Development
Director
Building
Building Code Compliance
Building Inspection
Permit Issuance
Structural Design Assessment
Plan Check
Americans with Disabilities
Act (ADA) Compliance
Planning
Land-use Planning
Project Processing
Coastal Planning
Architectural Review
Special Project Management
Historic & Environmental
Preservation
General Plan & Zoning
Housing Program
Commision & Committee
Support
City Manager
Code Compliance
Code Enforcement
Water Quality Compliance
Weed Abatement
City Prosecutor Services
Code Education Outreach
Permit/License
Compliance
Park/Beach Patrol &
Enforcement
Park Reservation
Check-In
OCSD Coordination
Services
Homeless Outreach
Community Development Administration
Special Project Management
Intergovernmental Coordination
Social Service Programs
Community Development Block Grant Administration
Emergency Planning
Disaster Preparedness
Emergency Operations Center
Community Emergency
Response Team
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Actual Amended Bud. Adjusted Budget Budget
Department Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Community Development - Admin 1,072,894 1,616,360 1,616,360 1,313,160 1,371,820 Building 1,771,116 2,366,340 2,366,340 2,363,840 2,459,770 Planning 2,279,571 4,125,790 4,125,790 2,263,300 2,367,790 Code Compliance 1,936,450 2,574,590 2,574,590 2,316,220 2,406,270 Total Community Development Budget $7,060,031 $10,683,080 $10,683,080 $8,256,520 $8,605,650 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 4,851,864 5,916,200 5,916,200 5,922,490 6,262,320 Supplies 55,280 67,350 67,350 53,510 57,510
Contractual Services 1,338,006 3,361,100 3,361,100 1,378,230 1,383,530 Other Charges 24,291 33,620 33,620 35,800 35,800
Interdepartmental Charges 712,090 751,110 751,110 866,490 866,490 Total Program Budget 6,981,531 10,129,380 10,129,380 8,256,520 8,605,650 Capital/Capital Studies 78,500 553,700 553,700 0 0
Total Community Development Budget $7,060,031 $10,683,080 $10,683,080 $8,256,520 $8,605,650 Personnel Summary 40.00 40.00 40.00 39.00 39.00
Key Initiatives
• Update the City’s Zoning Ordinance to establish Gateway Overlay regulations incentivizing appropriate new development that supports improved design standards, enhances corridor aesthetics, and guides development consistent with community vision and planning goals.
• Explore opportunities to expand the size and capacity of the City’s short-term lodging unit allowed zones, and incentivize other lodging uses City-wide, and develop such a proposed zoning amendment for the City Council’s consideration. • Advance emergency management procedures to enhance Emergency Operations Center operations and initiated efforts to update the City’s Emergency Operations Plan (EOP) to improve preparedness and response capabilities. • Complete and implement the City’s Real Estate Asset Management Program to enhance the inventory, tracking, and oversight of City-owned properties through an asset catalog. • Oversee development of an updated ADA Transition Plan to ensure the City maintains compliance with federal accessibility laws as they apply to City-owned property, facilities, and programs. • Update Code Compliance's Policy and Procedural Manual to ensure consistent and efficient service delivery, while continuing proactive quality-of-life enforcement and to comply with state law changes affecting municipal code enforcement activities. • Continue advancement of the Local Coastal Program through ongoing policy development, refinement of implementation measures, coordination with the California Coastal Commission, and public engagement to support certification and effective coastal resource management.

Community Development
Department Summary
Community Development Summary
Building

28.6%
Planning
Comm Dev Admin 27.4%

15.9%
Code
Compliance

28.1%
FY 2027
Building

28.6%
Planning 27.5%
Comm Dev Admin

15.9%
Code Compliance

28.0%
FY 2028
124
134
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Full-Time Salaries $2,924,603 $3,619,260 $3,619,260 $3,711,240 $4,010,860 Part-Time Salaries 201,884 304,810 304,810 64,000 34,000 Overtime 7,156 23,380 23,380 11,580 11,580
Benefits 1,718,221 1,968,750 1,968,750 2,135,670 2,205,880 Total Personnel 4,851,864 5,916,200 5,916,200 5,922,490 6,262,320 Office Supplies 13,929 18,610 18,610 14,110 14,110
Other Operating Supplies 38,173 44,490 44,490 35,900 39,900 Maintenance Supplies 3,177 4,250 4,250 3,500 3,500
Total Supplies 55,279 67,350 67,350 53,510 57,510
Administrative 8,300 16,730 16,730 115,310 115,310
Travel and Training 30,707 35,290 35,290 46,410 46,710
Utilities 1,608 1,710 1,710 1,700 1,700
Maintenance 132,869 232,060 232,060 191,060 191,060
Legal Services 185,036 261,000 261,000 251,000 256,000
Rental 0 0 0 25,000 25,000
Other Contractual Services 979,487 2,814,310 2,814,310 747,750 747,750 Total Contractual Services 1,338,007 3,361,100 3,361,100 1,378,230 1,383,530 Miscellaneous Charges 8,555 15,370 15,370 15,630 15,630 Promotional Charges 3,307 6,000 6,000 4,750 4,750
Total Other Charges 24,291 33,620 33,620 35,800 35,800
Machinery and Equipment 78,500 3,700 3,700 0 0
Capital Study 0 550,000 550,000 0 0
Total Capital Outlay 78,500 553,700 553,700 0 0
Interdepartmental Charges 712,090 751,110 751,110 866,490 866,490 Total Interdepartmental Charges 712,090 751,110 751,110 866,490 866,490 Total Interfund Transfers 0 0 0 0 0
Total Debt Service 0 0 0 0 0
Total: $7,060,031 $10,683,080 $10,683,080 $8,256,520 $8,605,650 Significant Changes:

Salaries and benefits change the first year adding one park ranger and reducing part-time park ranger costs along with a plans examiner and code tech position. FY 2027-28 includes increases based on merit and other changes.

Contractual services decrease as the completion of the off-shore sand study is completed and other one-time studies are completed, such as the parking and transit study. Administrative contract costs increase based on imaging of past documents which is an included decision package.

Capital outlay costs decrease due to one-time amounts in FY 2025-26 and interdepartmental increase due to higher fleet and information technology costs.

Community Development
Department Summary
125
135
Purpose Statement
Administration Services
• Direct and supervise operations including land use planning, plan processing, building activities, code enforcement, park rangers, homeless outreach, and customer service.
• Oversee Emergency Planning activities.
• Administer social services programs and targeted economic outreach. • Develop and implement emergency response operating plans and conduct related readiness training.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Community Development Admin 928,363 1,362,300 1,362,300 1,089,220 1,137,770 Emergency Planning 144,531 254,060 254,060 223,940 234,050 Total Community Dev Admin Budget $1,072,894 $1,616,360 $1,616,360 $1,313,160 $1,371,820 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 738,150 803,910 803,910 970,060 1,024,320
Supplies 12,170 12,720 12,720 40,290 40,290
Contractual Services 167,534 94,550 94,550 176,650 181,050 Other Charges 15,520 15,660 15,660 19,080 19,080
Interdepartmental Charges 139,520 139,520 139,520 107,080 107,080 Total Program Budget 1,072,894 1,066,360 1,066,360 1,313,160 1,371,820 Capital/Capital Studies 0 550,000 550,000 0 0
Total Community Dev Admin Budget $1,072,894 $1,616,360 $1,616,360 $1,313,160 $1,371,820 Personnel Summary 5.00 5.00 5.00 5.00 5.00
Community Development
Administration Division Summary
To serve as the custodians of San Clemente Community Development and implement City Council policy related to land development, building codes, construction regulation, code enforcement and regional issues that affect the form and function of San Clemente.
126
136
Purpose Statement
Building Division Services
• Review and process building, mechanical, plumbing and electrical permit applications. • Perform building plan reviews of residential and commercial buildings to verify compliance with State and City requirements.
• Conduct building, mechanical, plumbing and electrical inspections during construction of residential and commercial buildings in order to verify compliance with State and City requirements. • Maintain permit records and plans document files.
• Provide information to public related to State and City construction codes.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Administration 1,362,704 1,739,840 1,739,840 1,788,800 1,861,780 Inspection 408,412 626,500 626,500 575,040 597,990
Total Building Budget $1,771,116 $2,366,340 $2,366,340 $2,363,840 $2,459,770 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 1,356,683 1,623,000 1,623,000 1,575,610 1,667,540 Supplies 8,990 21,050 21,050 7,250 11,250
Contractual Services 174,088 482,670 482,670 496,350 496,350 Other Charges 1,655 3,480 3,480 2,730 2,730
Interdepartmental Charges 229,700 236,140 236,140 281,900 281,900 Total Program Budget 1,771,116 2,366,340 2,366,340 2,363,840 2,459,770 Non-Operating Expenditures Capital/Capital Studies 0 0 0 0 0 Total Building Budget $1,771,116 $2,366,340 $2,366,340 $2,363,840 $2,459,770 Personnel Summary 11.00 11.00 11.00 10.00 10.00
Community Development
Building Division Summary
To ensure the quality of life of those who live, work and visit the City of San Clemente by protecting life and property through the regulation of construction, use and occupancy of buildings, and by providing customer oriented permit, plan review and inspection services in a responsive, knowledgeable, professional, fair manner with integrity and consistency. 127
137
Purpose Statement
Planning Division Services
• Provide high level of customer service through public counter and telephone assistance, case management, weekly client communications, and business liaisons.
• Develop and maintain the City General Plan, Local Coastal Plan, Zoning Ordinance, Specific Plans and other relevant policy documents.
• Implement the long-range land use, housing, mobility and complete streets, urban design, open space, historic, environmental, coastal and hillside development policies and programs. • Review and process development applications and City Capital Projects to ensure they meet the City's General Plan, Zoning Ordinance, Design Guidelines, and other adopted policies and standards. • Present recommendations and information to the City Council and Planning Commission for policy development. • Review building plan checks for compliance with the Zoning Ordinance and City conditions of approval. • Review and Process environmental reports and related documents.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Current Planning 1,875,703 3,569,160 3,569,160 1,781,270 1,860,220 Commissions/Boards/Committees 18,972 37,730 37,730 29,140 29,140 Planning Administration 384,896 518,900 518,900 452,890 478,430 Total Planning Budget $2,279,571 $4,125,790 $4,125,790 $2,263,300 $2,367,790 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 1,440,423 1,835,000 1,835,000 1,803,800 1,908,290 Supplies 13,620 8,720 8,720 520 520
Contractual Services 671,062 2,119,020 2,119,020 221,850 221,850 Other Charges 6,306 11,550 11,550 11,410 11,410
Interdepartmental Charges 148,160 151,500 151,500 225,720 225,720 Total Program Budget 2,279,571 4,125,790 4,125,790 2,263,300 2,367,790 Capital/Capital Studies 0 0 0 0 0
Total Planning Budget $2,279,571 $4,125,790 $4,125,790 $2,263,300 $2,367,790 Personnel Summary 10.00 10.00 10.00 10.00 10.00
Community Development
Planning Division Summary
To provide guidance and support to help create a high quality of life in a community that offers opportunities for people to live, work, and play by implementing the City's vision, goals, and policies in the City Centenial General Plan. Provide high quality customer service by treating applicants and the public in a responsive, professional and fair manner. To improve the quality of life for persons of all economic levels through the provision of decent housing, new housing opportunities, social services, and neighborhood revitalization. 128
138
Purpose Statement
Code Compliance Division Services
• Receive community concerns and complaints regarding violations of the City's Municipal Code (SCMC) and other adopted provisions related to public nuisances, zoning and land-use violations, short-term lodging, signs, and specific City Codes. commercial operations, noise, new construction and maintenance, and other various regulations. • Investigate and resolve complaints to ensure compliance with applicable SCMC requirements. • Address complaints, and investigate concerns or noncompliance with City-issued permits, licenses, or other approvals. • Review proposed projects through the Development Management process to mitigate potential code enforcement issues by providing comments to applicants and applying discretionary project conditions. • Work as liaisons with the City's various divisions and property owners to provide the education, resources, and contacts available to maintain properties in compliance with the SCMC. • Maintain statistical data on each case to ensure compliance and reporting capability. • Inspect tenant housing complaints for substandard conditions and illegal dwelling units. • Manage and implement the City's annual Weed Abatement Program. • Manage and implement the Volunteer Code Compliance program. • Patrol public-parking areas and assist with the enforcement of violations. • Ensure compliance with the City's public camping and beach curfew-related regulations. • Work with the City Attorney's and Prosecutor's offices to assist in City litigation related to municipal code violations. • Utilize Geographic Assignment Areas and Educational Outreach Programs to proactively reduce future violations.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Code Compliance 1,170,975 1,408,410 1,408,410 1,299,600 1,347,070 Weed Abatement 142,600 396,060 396,060 256,060 256,060
Park Ranger 622,875 770,120 770,120 760,560 803,140
Total Code Compliance Budget $1,936,450 $2,574,590 $2,574,590 $2,316,220 $2,406,270 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 1,316,608 1,654,290 1,654,290 1,573,020 1,662,170 Supplies 20,500 24,860 24,860 5,450 5,450
Contractual Services 325,322 664,860 664,860 483,380 484,280 Other Charges 810 2,930 2,930 2,580 2,580
Interdepartmental Charges 194,710 223,950 223,950 251,790 251,790 Total Program Budget 1,857,950 2,570,890 2,570,890 2,316,220 2,406,270 Non-Operating Expenditures Capital/Capital Studies 78,500 3,700 3,700 0 0 Total Code Compliance Budget $1,936,450 $2,574,590 $2,574,590 $2,316,220 $2,406,270 Personnel Summary* 14.00 14.00 14.00 14.00 14.00
* Includes Community Outreach staff funded through a separate fund.

Community Development
Code Compliance Division Summary
To maintain a safe, healthy environment for our residents and visitors to live, work and play through assuring compliance with the City's land use, environmental and construction codes. In achieving this mission, the Code Compliance Division contributes to the long term stability of the City by protecting its economic vitality and diverstity resulting in a vibrant, balanced community capable of addressing today's needs and planning for tomorrow's challenges. The Division will assure compliance by encouraging voluntary compliance and sanctioning code violators who do not comply willingly. 129
139
130
140
Shading indicates contracted services
Public Works
Department Overview:

The City’s Public Works Department consists of Public Works Administration, Engineering and Maintenance Services Divisions. Core responsibilities include street maintenance, traffic engineering, solid waste and recycling oversight, water-quality compliance, and management of the City’s Capital Improvement Program (CIP). The department also reviews private development for compliance with City standards and regulates construction in the public right-of-way to ensure safety and adherence to local, state, and federal requirements. Through these efforts, the department supports community livability, sustainability, and the long-term integrity of public assets.

City Manager
Public Works Director /
City Engineer
Public Works Administration
Integrated Management & Oversight
Special Project Management
Policies, Procedures & Technical standards
Administrative & Clerical support
Beaches & Parks
Maintenance Services
Public Tree Maintenance
Parks & Beach
Maintenance
Vertebrate Pest
Management
Public Restroom
Maintenance
Park Improvements &
Renovations
Trail Maintenance
Median Maintenance
Engineering Services
Development Engineering,
Review & Permitting
Public Works &
Right-of-Way Inspection
Traffic Engineering
Capital Improvement Design &
Project Management
Street Improvement
Engineering & Design
Asset Inventory & Management
Computerized Maintenance
Management
Beaches, Parks and
Recreation Director
Maintenance/Facilities Services
Facilities & Street
Maintenance Services
Street Repair & Maintenance
Traffic Signals & Street Light
Maintenance
Facilities Maintenance
Regulatory/Street
Name/Informational Signage
Parking Meter Collection &
Maintenance
Contract Management
Street Cleaning
Golf Course
Maintenance
Landscape
Maintenance
Cart Path
Maintenance
Fence & Netting
Parking Lot and
Lighting Maintenance
Pest Management
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141
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I
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Actual Amended Bud. Adjusted Budget Budget
Department Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Public Works Admin. 1,906,036 2,974,190 2,974,190 923,350 960,340 Engineering 3,234,017 3,986,540 3,986,540 3,928,900 4,103,880 City Maintenance Services 6,953,556 8,974,960 8,974,960 7,133,540 7,333,600 Beaches/Parks Maintenance 12,470,355 10,658,580 10,658,580 6,735,570 6,816,010 Total Public Works Budget $24,563,964 $26,594,270 $26,594,270 $18,721,360 $19,213,830 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 7,249,106 7,943,030 7,943,030 8,357,810 8,743,370 Supplies 872,230 892,430 892,430 828,630 850,080
Contractual Services 8,066,071 9,264,630 9,264,630 6,988,790 7,074,250 Other Charges 6,893 14,020 14,020 8,520 8,520
Interdepartmental Charges 1,637,520 1,807,420 1,807,420 1,287,610 1,287,610 Total Program Budget 17,831,820 19,921,530 19,921,530 17,471,360 17,963,830 Capital/Capital Studies 6,732,144 6,672,740 6,672,740 1,250,000 1,250,000 Total Public Works Budget $24,563,964 $26,594,270 $26,594,270 $18,721,360 $19,213,830 Personnel Summary 43.30 43.30 43.30 41.55 41.55
Key Initiatives
• Complete design of Ave. Pico Bike/Ped. Improvement from I-5 to Frontera. • Widen Victoria Sidewalk at the base of the Municipal Pier. • Construct Calle Real and Reeves Water Pump Stations.
• Complete upgrades to the Pedestrian Audible Warning System (PAWS). • Replace the Water Reclamation Plant gate.
• Replace Liberty Park Playground shade sails.
• Waterproof two 3rd floor patios at City Hall.

Public Works
Department Summary
Public Works Summary
Public Works Admin.

4.9%
Engineering
City Maintenance 21.0%
Services 38.1%
Beaches/Parks
Maintenance

36.0%
FY 2027 Public Works Admin.

5.0%
Engineering

21.4% City Maintenance
Services 38.2%
Beaches/Parks
Maintenance

35.5%
FY 2028
132
142
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Full-Time Salaries $4,182,651 $4,888,830 $4,888,830 $4,975,840 $5,270,320 Part-Time Salaries 623 0 0 0 0
Overtime 377,505 220,420 220,420 218,570 218,570
Benefits 2,688,326 2,833,780 2,833,780 3,163,400 3,254,480 Total Personnel 7,249,105 7,943,030 7,943,030 8,357,810 8,743,370 Office Supplies 14,007 16,350 16,350 16,870 16,870
Other Operating Supplies 489,251 496,920 496,920 493,290 507,970 Street Signs & Materials 106,505 106,540 106,540 46,000 46,000 Maintenance Supplies 262,467 272,620 272,620 272,470 279,240 Total Supplies 872,230 892,430 892,430 828,630 850,080
Administrative 295 1,250 1,250 660 660
Travel and Training 5,648 15,500 15,500 10,560 10,540
Utilities 2,156,504 2,328,940 2,328,940 2,168,480 2,229,670 Maintenance 6,067,668 7,261,480 7,261,480 5,173,710 5,200,470 Internal Services (857,013) (1,070,000) (1,070,000) (1,070,000) (1,070,000) Sidewalk Pressure Washing 119,606 103,860 103,860 106,330 103,860 Rental 32,137 37,210 37,210 34,370 34,370
Animal/Pest Control 34,853 44,850 44,850 28,000 28,000
Other Contractual Services 506,373 541,540 541,540 536,680 536,680 Total Contractual Services 8,066,071 9,264,630 9,264,630 6,988,790 7,074,250 Miscellaneous Charges 6,523 13,220 13,220 7,520 7,520
Promotional Charges 370 800 800 1,000 1,000
Social Service Charges 0 0 0 0 0
Total Other Charges 6,893 14,020 14,020 8,520 8,520
Improvements Other Than Bldg. 5,019,158 2,763,150 2,763,150 0 0 Major Maintenance 1,064,901 1,791,830 1,791,830 300,000 300,000 Sidewalk Repair & Improvements 117,905 432,760 432,760 150,000 150,000 Major Street Maintenance 380,360 600,000 600,000 550,000 550,000 Slurry Seal 149,821 250,000 250,000 250,000 250,000
Capital Study 0 835,000 835,000 0 0
Total Capital Outlay 6,732,145 6,672,740 6,672,740 1,250,000 1,250,000 Interdepartmental Charges 1,637,520 1,838,420 1,838,420 1,287,610 1,287,610 Charges to Other Funds 0 (31,000) (31,000) 0 -
Total Interdepartmental Charges 1,637,520 1,807,420 1,807,420 1,287,610 1,287,610 Total Interfund Transfers 0 0 0 0 0
Total Debt Service 0 0 0 0 0
Total: $24,563,964 $26,594,270 $26,594,270 $18,721,360 $19,213,830 Significant Changes:

Personnel costs reflect staffing levels and the reduction of positions from the FY 2025-26 staff levels.

Contractual services reflect decreases to maintenance costs as a result of the one-time costs for Slope stabilization at the Casa Romantica and other one-time maintenance is in other funds.

Capital outlay decreases as projects are budgeted in the Capital Improvement fund, while base level maintenance is budgeted in the General Fund.

Interdepartmental charges decrease as capital replacement charges are removed from the oeprating budget.

Public Works
Department Summary
133
143
Purpose Statement
Administration Services
• Direct activities of the Engineering Services and oversee utilities. • Develop and monitor annual operating and capital improvement project budgets. • Provide administrative and records management support. • Develop and update policies, procedures and technical design standards.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Public Works Admin. 1,906,036 2,974,190 2,974,190 923,350 960,340 Total Public Works Admin Budget $1,906,036 $2,974,190 $2,974,190 $923,350 $960,340 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 684,594 860,030 860,030 817,160 854,250
Supplies 9,452 9,780 9,780 20,850 20,950
Contractual Services 1,167,335 2,060,140 2,060,140 880 680 Other Charges 3,865 3,450 3,450 4,500 4,500
Interdepartmental Charges 40,790 40,790 40,790 79,960 79,960 Total Program Budget 1,906,036 2,974,190 2,974,190 923,350 960,340 Capital/Capital Studies 0 0 0 0 0
Total Public Works Admin Budget $1,906,036 $2,974,190 $2,974,190 $923,350 $960,340 Personnel Summary 4.00 4.00 4.00 3.25 3.25
Public Works
Administration Summary
To provide leadership and coordination of engineering, design, and utilities functions to ensure timely, cost effective and efficient delivery of services to all City Departments and the public in accordance with federal, state, and local regulations. 134
144
Purpose Statement
Engineering Division Services
• Provide engineering design, administration and construction of public works projects. • Issue residential/commercial development grading and construction inspection permits, right-of-way encroachment permits and transportation permits.
• Provide transportation, traffic, and parking services. • Process development projects and coordinate with Planning and Building divisions for development project reviews. • Conduct inspections of grading, water, sewer, streets, drainage and City facility projects to ensure conformance with approved plans and specifications.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Development Engineering 616,139 678,380 678,380 723,250 743,920 Inspection 426,545 438,300 438,300 462,800 478,660
Traffic 604,775 617,310 617,310 647,860 675,980
Design & Development 260,349 168,250 168,250 283,500 350,420 Streets Engineering 678,124 788,070 788,070 848,020 891,430 Major Street Maintenance 648,085 1,296,230 1,296,230 963,470 963,470 Total Engineering Budget $3,234,017 $3,986,540 $3,986,540 $3,928,900 $4,103,880 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 3,028,469 3,299,760 3,299,760 3,551,770 3,724,860 Supplies 9,950 17,120 17,120 4,270 4,270
Contractual Services (737,976) (892,100) (892,100) (920,320) (918,430) Other Charges 1,819 2,000 2,000 2,370 2,370
Interdepartmental Charges 283,670 277,000 277,000 340,810 340,810 Total Program Budget 2,585,932 2,703,780 2,703,780 2,978,900 3,153,880 Non-Operating Expenditures Capital/Capital Studies 648,085 1,282,760 1,282,760 950,000 950,000 Total Engineering Budget $3,234,017 $3,986,540 $3,986,540 $3,928,900 $4,103,880 Personnel Summary 16.00 16.00 16.00 15.00 15.00
Public Works
Engineering Services Summary
To provide professional engineering services for the planning, design, construction, inspection and maintenance of City infrastructure to meet existing and future demands for adequate services, that include transportation, park facilities, water supply and distribution, sewage collection and treatment, environmental protection, and drainage collection and conveyance.
135
145
Purpose Statement
City Maintenance Services
• Maintain and repair City-owned streets, sidewalks, traffic signals, traffic signs, street striping, parking meters and pay stations, street lights, and unimproved storm drainage channels. • Maintain City facilities and buildings.
• Manage contract street sweeping program.
• Support Engineering Division (Traffic Transportation) to manage traffic flow through coordinating traffic signals. • Support the Street Improvement Program, Major Street Maintenance and Slurry Seal programs.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Traffic Signals 1,297,211 1,261,150 1,261,150 1,190,150 1,227,580 Traffic Maintenance 239,100 511,470 511,470 415,390 427,860 Maintenance Services Admin. 944,531 999,320 999,320 1,026,130 1,067,790 Street Maintenance & Repair 791,586 922,780 922,780 918,840 947,410 Senior Center Facility 54,294 85,850 85,850 54,170 55,940 Parking Maintenance 226,974 226,760 226,760 231,150 232,230 Facilities Maintenance 2,727,814 4,388,140 4,388,140 2,684,270 2,754,440 Street Lighting 672,046 579,490 579,490 613,440 620,350 Total City Maintenance Services Budget $6,953,556 $8,974,960 $8,974,960 $7,133,540 $7,333,600 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 3,102,707 3,282,750 3,282,750 3,459,410 3,617,180 Supplies 478,041 480,720 480,720 417,290 426,540
Contractual Services 2,176,677 2,164,470 2,164,470 2,214,050 2,247,090 Other Charges 595 7,520 7,520 600 600
Interdepartmental Charges 840,240 968,340 968,340 742,190 742,190 Total Program Budget 6,598,260 6,903,800 6,903,800 6,833,540 7,033,600 Non-Operating Expenditures Capital/Capital Studies 355,296 2,071,160 2,071,160 300,000 300,000 Total City Maintenance Services Budget $6,953,556 $8,974,960 $8,974,960 $7,133,540 $7,333,600 Personnel Summary 20.80 20.80 20.80 20.80 20.80
Public Works
Facilities and Street Maintenance Services
To provide proactive and cost effective maintenance support services for the City's facilities and structures to achieve their maximum expected design life and to ensure a safe environment for the public and City employees. 136
146
Purpose Statement
Beaches/Parks Maintenance Services
• Oversee maintenance for beaches, parks, trails, medians, public trees, and the utilities facilities landscape. • Manage maintenance contractors to ensure compliance with expected service levels. • Maintain park playground equipment to safety standards regulated by the Federal Government. • Oversee the maintenance operations of the Muncipal Golf Course.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Trail Maintenance 278,877 365,660 365,660 273,950 276,040 Street Median & Trees 498,167 914,310 914,310 417,890 428,460 Streetscapes 905,949 1,031,480 1,031,480 890,160 892,530 Park Maintenance 3,853,178 4,301,660 4,301,660 3,783,920 3,822,000 Beach Maintenance 6,345,432 3,344,040 3,344,040 703,420 713,140 Parks & Beach Maint. Administration 588,752 701,430 701,430 666,230 683,840 Total Beaches/Parks Maint. Budget $12,470,355 $10,658,580 $10,658,580 $6,735,570 $6,816,010 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 433,336 500,490 500,490 529,470 547,080
Supplies 374,787 384,810 384,810 386,220 398,320
Contractual Services 5,460,035 5,932,120 5,932,120 5,694,180 5,744,910 Other Charges 614 1,050 1,050 1,050 1,050
Interdepartmental Charges 472,820 521,290 521,290 124,650 124,650 Total Program Budget 6,741,592 7,339,760 7,339,760 6,735,570 6,816,010 Non-Operating Expenditures Capital/Capital Studies 5,728,763 3,318,820 3,318,820 0 0 Total Beaches/Parks Maint. Budget $12,470,355 $10,658,580 $10,658,580 $6,735,570 $6,816,010 Personnel Summary 2.50 2.50 2.50 2.50 2.50
Public Works
Beaches/Parks Maintenance Services Summary
To maintain and preserve the City's beaches, parks, trails, medians, maintenance landscapes, urban forest and the pier in an efficient, safe and cost-effective manner.
137
147
138
148
Shading indicates contracted services
Beaches, Parks & Recreation
Department Overview:

The Beaches, Parks & Recreation Department includes the Administration, Recreation, and Golf divisions. The department operates many of the City’s key community resources and historic facilities like the Beach Club, offering a wide range of programs, services, and special events that enrich the quality of life in San Clemente. From the iconic pier and coastline to the City’s inland trails and scenic hillsides, the department is dedicated to meeting community needs while preserving the unique character and natural beauty that make San Clemente an exceptional place to live, work, and play.

City Manager
Beaches, Parks and
Recreation Director
Beaches, Parks & Recreation Administration
Beaches, Parks & Recreation Commission
Long & Short Term Recreation Planning
Arts & Culture Commission
Golf
Operation of Municipal
Golf Course
Golf Course Committee
Landscape Maintenance
Contract Administration of
Pro-Shop Operations
Recreation
Recreation Magazine
Park & Facility Monitoring
Volunteers
Youth/Adult Sports
Special Events
City Partnership Events
Commercial Filming Permits
After School Programs
Aquatic Programs
Recreation Classes
Park & Facility Rentals and
Concessions
Special Event Permits
139
149
I
I
I
I I
Actual Amended Bud. Adjusted Budget Budget
Department Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beaches, Parks & Rec. Admin. 490,841 490,610 490,610 594,930 628,110 Recreation 5,914,650 6,284,050 6,284,050 6,585,600 6,635,610 Total Beaches, Parks & Rec. Budget $6,405,491 $6,774,660 $6,774,660 $7,180,530 $7,263,720 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 3,448,277 3,554,090 3,554,090 3,892,000 4,070,830 Supplies 344,110 394,900 394,900 443,020 454,170
Contractual Services 978,212 1,005,900 1,005,900 948,250 961,280 Other Charges 1,128,812 1,273,920 1,273,920 1,358,140 1,358,320 Interdepartmental Charges 506,080 545,850 545,850 419,120 419,120 Total Program Budget 6,405,491 6,774,660 6,774,660 7,060,530 7,263,720 Capital/Capital Studies 0 0 0 120,000 0
Total Beaches, Parks & Rec. Budget $6,405,491 $6,774,660 $6,774,660 $7,180,530 $7,263,720 Personnel Summary 19.75 19.75 18.75 18.75 18.75
Key Initiatives
• Activate Facilities and Expand Community Programming - Launch operations at the Beach Club and expand programs, events and partnerships to maximize use of public spaces. • Enhance Operational Efficiency and Service Delivery - Improve systems, staffing models, and internal processes to increase efficiency and customer service across all divisions. • Lead Citywide Initiatives and Regional Opportunities - Prepare for the City’s Centennial (2028) and advance planning and partnerships to support 2028 Olympic-related opportunities.

Beaches, Parks & Recreation
Department Summary
Beaches, Parks and Recreation Summary
Beaches,
Parks & Rec.

Admin. 8.3%
Recreation

91.7%
FY 2027
Beaches, Parks
& Rec. Admin.

8.6%
Recreation

91.4%
FY 2028
140
150
Expenditures Actual Amended Bud. Adjusted Budget Budget Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Full-Time Salaries $1,341,235 $1,466,280 $1,466,280 $1,587,970 $1,704,910 Part-Time Salaries 1,141,283 1,104,620 1,104,620 1,220,790 1,248,170 Overtime 34,334 21,950 21,950 29,290 29,290
Benefits 931,424 961,240 961,240 1,053,950 1,088,460
Total Personnel 3,448,276 3,554,090 3,554,090 3,892,000 4,070,830 Office Supplies 10,727 9,950 9,950 11,450 11,450
Other Operating Supplies 272,789 248,300 248,300 323,770 334,860 Concession Supplies 47,366 120,000 120,000 90,000 90,000 Maintenance Supplies 13,228 16,650 16,650 17,800 17,860 Total Supplies 344,110 394,900 394,900 443,020 454,170
Administrative 16,533 16,270 16,270 16,140 16,520
Travel and Training 17,235 18,000 18,000 20,580 20,580
Utilities 513,396 572,890 572,890 521,120 532,770
Maintenance 81,472 96,670 96,670 95,320 95,320
Professional Services 172,871 168,920 168,920 129,810 129,810 Bank Merchant Fees 85,862 52,000 52,000 78,280 78,280
Contractual Services 90,844 81,150 81,150 87,000 88,000 Total Contractual Services 978,213 1,005,900 1,005,900 948,250 961,280 Miscellaneous Charges 30,525 29,870 29,870 28,560 28,560 Promotional Charges 1,737 2,000 2,000 2,000 2,000
Special Event Costs 148,226 163,800 163,800 186,620 186,800 Contract Class Instructors 948,324 1,078,250 1,078,250 1,140,960 1,140,960 Total Other Charges 1,128,812 1,273,920 1,273,920 1,358,140 1,358,320 Machinery and Equipment 0 0 0 120,000 0
Total Capital Outlay 0 0 0 120,000 0
Interdepartmental Charges 506,080 545,850 545,850 419,120 419,120 Total Interdepartmental Charges 506,080 545,850 545,850 419,120 419,120 Total Interfund Transfers 0 0 0 0 0
Total Debt Service 0 0 0 0 0
Total: $6,405,491 $6,774,660 $6,774,660 $7,180,530 $7,263,720 Significant Change:

Personnel costs recognize changes from the addition of the Beach Club operations to recreation.

Supplies and other charges increase due to the additional Beach Club operations, this also includes the one-time purchase of machinery and equipment.

Interdepartmental charges decrease as capital replacement charges are removed from the budget with capital funded by residual transfers from the General Fund.

Department Summary
Beaches, Parks & Recreation
141
151
Purpose Statement
Beaches, Parks & Recreation Administration Services
• Direct the Beaches, Parks and Recreation divisions of the City. • Provide staff assistance to the Beaches, Parks & Recreation Commission. • Provide staff assitance to the Arts & Culture Commission.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beaches, Parks & Rec. Admin. 490,841 490,610 490,610 594,930 628,110 Total BP&R Administration Budget $490,841 $490,610 $490,610 $594,930 $628,110 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 414,131 446,440 446,440 496,130 529,160
Supplies 1,237 2,450 2,450 72,490 72,640
Contractual Services 38,806 8,100 8,100 1,750 1,750
Other Charges 13,297 10,250 10,250 8,160 8,160
Interdepartmental Charges 23,370 23,370 23,370 16,400 16,400 Total Program Budget 490,841 490,610 490,610 594,930 628,110 Capital/Capital Studies 0 0 0 0 0
Total BP&R Administration Budget $490,841 $490,610 $490,610 $594,930 $628,110 Personnel Summary 3.00 3.00 2.00 2.00 2.00
Beaches, Parks & Recreation
Administration Division Summary
To provide support, direction and oversight to Recreation Division and programs with an emphasis on community needs, environmental conservation, conserving historic facilities, providing enriching programs and special community events, and service to the public in an enjoyable and safe manner. Oversee the maintenance and facilities of the City. 142
152
Purpose Statement
Recreation Services
• Develop and implement a variety of recreation programs and events for the community. • Coordinate City services for community partnered events. • Collaborate with community organizations to acquire funding and resources for programs. • Provide exceptional customer service to residents.
• Facilitate appropriate use of public facilities and parks through a permit process.

Actual Amended Bud. Adjusted Budget Budget
Program Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Ole Hanson Beach Club (OHBC) 249,008 253,200 253,200 623,640 512,710 Community Center 566,754 612,870 612,870 573,710 587,690 Community Services 1,302,596 1,443,470 1,443,470 1,404,970 1,426,960 Aquatics 1,580,465 1,469,590 1,469,590 1,586,250 1,643,210 VH Sports Field/SC Aquatics Facility 974,509 1,048,090 1,048,090 899,160 921,120 Sports Field Operations 498,878 644,910 644,910 651,790 667,280 Recreation Programs/Events 742,440 811,920 811,920 846,080 876,640 Total Recreation Budget $5,914,650 $6,284,050 $6,284,050 $6,585,600 $6,635,610 Actual Amended Bud. Adjusted Budget Budget
Category Expenditure Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 3,034,146 3,107,650 3,107,650 3,395,870 3,541,670 Supplies 342,873 392,450 392,450 370,530 381,530
Contractual Services 939,406 997,800 997,800 946,500 959,530 Other Charges 1,115,515 1,263,670 1,263,670 1,349,980 1,350,160 Interdepartmental Charges 482,710 522,480 522,480 402,720 402,720 Total Program Budget 5,914,650 6,284,050 6,284,050 6,465,600 6,635,610 Capital/Capital Studies 0 0 0 120,000 0
Total Recreation Budget $5,914,650 $6,284,050 $6,284,050 $6,585,600 $6,635,610 Personnel Summary 16.75 16.75 16.75 16.75 16.75
Beaches, Parks & Recreation
Recreation Division Summary
To promote health, wellness, and quality of life through services and programs that strengthen a sense of place and community, promote cultural unity, and facilitate neighborhood and community problem solving. 143
153
144
154
Special Revenue Funds account for the proceeds of specific revenue sources that are restricted by law or administrative action to expenditures for specific purposes.

At the conclusion of the FY 2025-26, the Disaster Relief Fund will be closed and the Police Grants fund will be consolidated with the General Fund.

Special Revenue Funds
Street
Improvement
Fund
Gas Tax Fund Senior
Mobility
Miscellaneous
Grants Fund
Disaster Relief
Fund
Air Quality
Improvement
Fund
Local Cable
Infrastructure
Fund
Police Grants
Fund Local Transit
Building
Homes & Jobs
Act
145
155
146
156
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $3,765,894 $4,763,000 $4,763,000 $1,326,850 $609,080 Revenues:

Street Improvement Assessments 16 0 0 0 0
Measure M2 Apportionment 1,338,617 1,509,000 1,509,000 1,509,000 1,509,000 Investment Earnings 197,254 91,100 91,100 90,000 90,000 Other State Grants 5 0 0 0 0
Transfer from General Fund 500,000 500,000 500,000 0 0
Transfer from Water Depreciation 100,000 100,000 100,000 200,000 200,000 Transfer from Sewer Depreciation 100,000 100,000 100,000 50,000 50,000 Total Revenues 2,235,892 2,300,100 2,300,100 1,849,000 1,849,000 Expenditures:

Contractual Services 839,797 603,000 603,000 830,000 680,000 Capital Improvements* 336,846 5,071,110 5,071,110 1,700,000 1,700,000 Interdepartmental Charges 62,140 62,140 62,140 36,770 36,770 Total Expenditures 1,238,783 5,736,250 5,736,250 2,566,770 2,416,770 Ending Balance $4,763,003 $1,326,850 $1,326,850 $609,080 $41,310 Fund Balance: Fund balance is budgeted to be $41,310 at the end of FY 2027-28.

Street Improvement Fund
042-848
Description: The Street Improvement Fund was a benefit assessment district approved by the City Council on July 19, 1995, established to provide a designated fund for the rehabilitation of City streets. This assessment district expired in FY 2011-12, but the fund is utilized for rehabilitation of City streets with other revenue amounts.

Funding Source: Revenue sources include Measure M monies, contributions from the City's General Fund and investment earnings. In addition, Water and Sewer projects are coordinated with street improvement projects to minimize surface reconstruction costs. Funds for these projects are transferred in from the applicable Water and Sewer Depreciation Reserves.

Legal Basis: Measure M monies are governed by the County of Orange Transportation Authority and are restricted. The General Fund and Other Fund transfers are not legally restricted.

Budget Overview: Revenues for FY 2026-27 and 2027-28 include Measure M2 revenues in the amount of $1.5 million, investment earnings of $90,000 and transfers from other funds of $250,000. Expenditures include capital improvements of $1.5 million annually for street improvement program projects and $200,000 for Alley/Parking Lot Pavement Rehabilitation. 147
157
Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Improvements: FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Del Mar Street Rehabilitation 5,831 1,108,560 1,108,560 0 0 Street Improvement Projects 0 137,940 137,940 0 0
Alley Pavement Rehabilitation 300,000 380,630 380,630 0 0 Street Rehabilitation Program 31,015 1,268,980 1,268,980 0 0 Alley/Parking Lot Rehabilitation Program 0 100,000 100,000 0 0 Palizada Talega Saluda Signal Synch 0 675,000 675,000 0 0 Alley/Parking Lot Rehab Program FY 2026 0 100,000 100,000 0 0 Street Rehabilitation Program FY 2026 0 1,300,000 1,300,000 0 0 Street Rehabilitation Program 0 0 0 1,500,000 1,500,000 Alley Pavement Rehabilitation 0 0 0 200,000 200,000
Total Capital Improvements $336,846 $5,071,110 $5,071,110 $1,700,000 $1,700,000 Street Improvement Fund
148
158
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $7,036,891 $7,219,150 $7,219,150 $3,444,630 $812,030 Revenues:
2103 Motor Vehicle Fuel Tax 611,477 605,660 605,660 626,700 626,700 2105 Apportionment (Prop. 111) 398,659 410,940 410,940 419,000 419,060 2106 Apportionment 261,605 260,120 260,120 272,190 272,190 2107 Apportionment 528,848 548,000 548,000 550,300 550,300 2107.5 Apportionment 7,500 7,500 7,500 7,500 7,500
2031 Apportionment 1,587,659 1,658,000 1,658,000 1,798,000 1,798,000 Federal Grant 4,365 176,000 176,000 850,000 0
Investment Earnings 366,468 92,000 92,000 97,000 92,000 Other County Grants 5,745 189,840 1,075,120 564,000 600,000 Miscellaneous Revenues 0 0 0 40,000 0
Total Revenues 3,772,326 3,948,060 4,833,340 5,224,690 4,365,750 Expenditures:

Supplies 0 0 0 50,000 50,000
Contractual Services 0 25,000 25,000 20,000 20,000
Capital Improvements* 2,986,089 8,048,010 8,048,010 7,200,000 3,425,000 Interfund Charges 24,850 24,850 24,850 37,290 37,290
Transfer to General Fund 579,132 510,000 510,000 550,000 550,000 Total Expenditures 3,590,071 8,607,860 8,607,860 7,857,290 4,082,290 Ending Balance $7,219,146 $2,559,350 $3,444,630 $812,030 $1,095,490 Fund Balance: Fund balance is budgeted to be $1,095,490 at the end of FY 2027-28.

Gas Tax Funds
011-864/012-861/013-802
Description: The Gas Tax Fund is utilized for new construction and the reconstructing of City streets and the placement of asphalt for rehabiliation and preservation purposes. The fund also provides for the improvement and maintenance of county arterial bikeways and pedestrian walkways.

Funding Source: The main revenue sources for this fund are Gas Tax apportionments (2103, 2105, 2106, 2107, 2107.5), Traffic Congestion Relief, and Road Maintenance and Rehabilitation Account (2031) funds. Measure M revenues in this fund are grant revenues that are related to specific capital projects.

Legal Basis: This fund is governed by the California Street & Highways Code. Resources in this fund are restricted.

Budget Overview: Revenues for this fund include Gas taxes, grants, transfers, and other State program receipts. Fiscal years 2026-27 and 2027-28 capital projects total $7.2 million and $3.4 million respectively. Projects include Arterial Street Pavement Maintenance ($750,000), Local Street Pavement Maintenance ($750,000), As-Needed Street Improvement Program ($700,000), Street Sign Replacement Program ($50,000) per year. Other significant projects include North Beach Train Station Improvements ($960,000), Pico Widening ($600,000) and Calafia Complete Streets ($900,000). 149
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Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Improvements: FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Camino Del Rio & Ave. La Pata Extension 563 0 0 0 0
S. El Camino Real (Ave Mendocino to City Limit) 1,263,933 819,370 819,370 0 0 Street Sign Replacement Program 7,987 50,000 50,000 0 0 Del Mar Street Rehabilitation 0 449,140 449,140 0 0
RMRA Signalized Intersection Improvements 15,000 1,022,360 1,022,360 0 0 Pavement Preservation Program 3,945 481,880 481,880 0 0 As Needed Street Improvements 0 700,000 700,000 0 0
As Needed Street Improvements 0 0 0 700,000 700,000
Pavement Preservation Program 126,782 0 0 0 0
Traffic Signal Cabinet & Pedestals Replacement 25,348 574,650 574,650 0 0 Local Street Improvements FY 2026 0 750,000 750,000 0 0 Local Street Improvements 0 0 0 750,000 750,000
As-Needed Street Improvement Program-Various 63,958 136,040 136,040 0 0 Arterial Street Improvement Program 607,343 90,000 90,000 0 0 Calle Pueblo Sidewalk Improvements 30,754 519,250 519,250 0 0 Local Street Improvement Program 750,000 0 0 0 0
Traffic Signal Camera Replacement 0 150,000 150,000 150,000 150,000 Camino Capistrano Crosswalk Improvements 81,274 15,320 15,320 0 0 Calafia Complete Streets 9,202 1,290,000 1,290,000 900,000 0 Mira Costa Pedestrian Island 0 150,000 150,000 0 0
ECR & Ave Palizada to Presidio Class 3 Bike Improv. 0 100,000 100,000 0 0 Arterial Street Improvement Program FY 2026 0 750,000 750,000 0 0 Avenida Victoria Sidewalk and Underpass 0 0 0 450,000 0 Arterial Street Improvement Program 0 0 0 750,000 750,000 North Beach Train Station Improvements 0 0 0 960,000 0
Pico Widening I-5 to Frontera 0 0 0 600,000 0
Max Berg Park ADA Ramp and Parking 0 0 0 100,000 0
Street Light LED Conversion 0 0 0 250,000 0
Electrification Charging Station 0 0 0 75,000 0
Trash Capture Devices 0 0 0 705,000 750,000
Bulb Out Extension-Calle Seville and Ola Vista 0 0 0 0 150,000 Eastside San Luis Rey Sidewalk Installation 0 0 0 0 100,000 In-pavement Lighting System Replacement 0 0 0 300,000 0 Traffic Control and High Speed Feedback 0 0 0 25,000 25,000 Signalized Intersection Maintenance 0 0 0 50,000 50,000 Pavement Improvements Palizada I-5 to ECR 0 0 0 300,000 0 Traffic Barricades 0 0 0 135,000 0
Total Capital Improvements $2,986,089 $8,048,010 $8,048,010 $7,200,000 $3,425,000 Gas Tax Fund
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $426,644 $416,750 $416,750 $340,560 $290,430 Revenues:

OCTA Senior Transportation 105,296 120,570 120,570 106,960 108,910 Investment Earnings 21,396 8,500 8,500 8,000 5,000
Transfer from General Fund 15,000 41,200 41,200 23,000 27,000 Total Revenues 141,692 170,270 170,270 137,960 140,910
Expenditures:

Other Charges 151,125 246,000 246,000 185,000 185,000
Interfund Charges 460 460 460 3,090 3,090
Total Expenditures 151,585 246,460 246,460 188,090 188,090 Ending Balance $416,751 $340,560 $340,560 $290,430 $243,250 Fund Balance: Fund balance is budgeted to be $243,250 at the end of FY 2027-28.

Senior Mobility Fund
015-806
Description: The Senior Mobility Fund is utilized to fill the gap between local fixed-route buses and ADA paratansit by providing local transportation services to seniors in the CIty of San Clemente.

Funding Source: The main revenue source for this fund are Measure M2 funds received by the Orange County Transporation Authority. Measure M2 revenues in this fund are used to design and operate a transit program that best fits the nees of older adults in their communities.

Legal Basis: This fund is governed by the Orange County Measure M2 guidelines through the Senior Mobility Program.

Budget Overview: Revenues for this fund include revenues from Orange County Transporation Authority for senior transit services. This fund is utilizing funds accumulated during the COVID years and service activities will be modified according after past resouces are spent.
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $407,977 $379,930 $379,930 $112,920 $332,750 Revenues:

CDBG Home Rehabilitation 0 150,960 150,960 150,960 150,960 Public Facilities/Infrastructure Grant 78,235 125,000 417,640 500,000 150,000 Commercial Rehabilitation Grant 0 10,000 10,000 10,000 10,000 Public Services Grant 45,998 47,130 47,130 45,000 45,000 CDBG Administration Grant 73,423 62,850 62,850 60,000 60,000 Investment Earnings 454 0 0 0 0
Program Income 4 10,000 10,000 10,000 10,000
Total Revenues 198,114 405,940 698,580 775,960 425,960
Expenditures:

Personnel 61 0 0 0 0
Contractual Services 94,086 495,890 495,890 220,960 220,960 Other Charges 38,850 37,130 37,130 37,000 37,000
Capital Outlay 78,235 417,640 417,640 290,000 130,000
Interfund Transfers 10,000 10,000 10,000 8,000 8,000
Interfund Charges 4,930 4,930 4,930 170 170
Total Expenditures 226,162 965,590 965,590 556,130 396,130 Ending Balance $379,929 -$179,720 $112,920 $332,750 $362,580 Programs:

C.D.B.G. Housing Rehabilitation
Contractual Services 25,655 427,210 427,210 150,960 150,960 C.D.B.G. Commercial Rehabilitation
Contractual Services 0 10,000 10,000 10,000 10,000
Public Services
Other Charges 38,850 37,130 37,130 37,000 37,000
Transfer to General Fund 10,000 10,000 10,000 8,000 8,000 City Administration
Personnel 61 0 0 0 0
Contractual Services 68,431 58,680 58,680 60,000 60,000 Interdepartmental Charges 4,930 4,930 4,930 170 170
Public Facility/Infrastructure
CDBG Infrastructure 78,235 417,640 417,640 290,000 130,000 Total Expenditures $226,162 $965,590 $965,590 $556,130 $396,130 Fund Balance: The FY 2027-28 fund balance of $362,580 includes rehabilitation loan receivable amounts.

Miscellaneous Grants Fund
017-990
Description: The Miscellaneous Grants Fund is comprised of Federal Housing and Urban Development Community Development Block Grants (C.D.B.G.) and other grants received by the City for various projects related to community programs and public improvements.

Funding Source: The major source of revenue for this fund is C.D.B.G. monies.

Budget Overview: This fund includes CDBG grant revenues and program costs. Housing rehabilitation for low income households and infrastructure activities continue to be the major program initiative funded for FY 2026-27 and FY 2027-28.

Legal Basis: Resources in this fund are restricted based on the grant agreement. 152
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $338,992 -$70,660 -$70,660 $0 $0
Revenues:

Investment Earnings 8,946 0 0 0 0
Other Revenue 0 0 97,440 0 0
Transfer from Other Funds 0 0 0 0 0
Total Revenues 8,946 0 97,440 0 0
Expenditures:

Personnel 0 0 0 0 0
Supplies 0 0 0 0 0
Contractual Services 0 0 0 0 0
Other charges 0 0 0 0 0
Capital Outlay 18,594 80,000 0 0 0
Transfer to General Fund 400,000 0 26,780 0 0
Total Expenditures 418,594 80,000 26,780 0 0
Ending Balance -$70,656 -$150,660 $0 $0 $0
Fund Balance: These funds are projected to fully utilized and the ending fund balance to be $0 at June 30, 2028.

Disaster Relief Fund
016-804
Description: The Disaster Relief fund was reactivated in FY 2019-20 and is utilized to pay for costs related to COVID related activities. The Disaster Relief Fund will be used to track costs incurred related to the pandemic and be used to provide resources to mitigate the impact to citizens and staff.

Funding Source: This fund was initially funded in FY 2019-20 through transfers from the General Fund and the General Liability Fund. These amounts provided were to provide initial amounts to fund COVID related costs until Federal and/or State resources are made available from grants or other resources.

Legal Basis: The funds contributed are to be used the the payment of COVID associated costs. The amounts were contributed from unrestricted resources. As amounts are recovered through grants or other funding the amounts received will be reimburse costs already paid by the City.

Budget Overview: Revenues are currently not budgeted from Federal or State resources due to the uncertain timing of the receipts. Costs paid from this fund are related to COVID and used as revenue replacement amounts to fund various activities and services to the public. The grant is closing out in FY 2025-26. 153
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance -$10,208 $51,980 $51,980 $307,780 $313,580 Revenues:

Other County Grants 0 250,000 250,000 0 0
Pollution Subventions 61,515 84,000 84,000 84,000 84,000 Investment Earnings 669 1,800 1,800 1,800 1,800
Total Revenues 62,184 335,800 335,800 85,800 85,800
Expenditures:

Contractual Services 0 80,000 80,000 80,000 80,000
Total Expenditures 0 80,000 80,000 80,000 80,000
Ending Balance $51,976 $307,780 $307,780 $313,580 $319,380 Fund Balance: Fund balance will be $319,380 by the end of FY 2027-28.

Air Quality Improvement Fund
019-819
Description: The Air Quality Improvement Fund is utilized for programs designed to reduce air pollution from motor vehicles pursuant to either the California Clean Air Act of 1988 and/or the South Coast Air Quality Management District's (AQMD) plan prepared pursuant to Section 40460 of the California Health and Safety Code.

Funding Source: This fund receives revenue from the South Coast Air Quality Management District which levies a fee on motor vehicles registered within the District. Forty percent of the fees collected are distributed to cities in the district that have adopted mobile source air pollution reduction ordinances.

Legal Basis: The fees collected to support this fund are governed by the provisions of Section 44223 of the California Health and Safety Code. The City adopted Ordinance No. 1047 on April 17, 1991. This ordinance requires that the fees received be deposited into a separate Air Quality Improvement Fund, and be used for programs described above. Resources in this fund are restricted.

Budget Overview: Revenues of $85,800 are budgeted to be received during both FY 2026-27 and FY 2027-28. Expenditures of $80,000 for traffic calming program is budgeted in FY 2026-27 and FY 2027-28. 154
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I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $1,295,102 $1,549,790 $1,549,790 $1,658,830 $1,843,750 Revenues:

Franchise Taxes 198,048 185,000 185,000 185,000 185,000 Investment Earnings 67,603 20,000 20,000 30,000 30,000
Total Revenues 265,651 205,000 205,000 215,000 215,000
Expenditures:

Capital Improvements* 0 85,000 85,000 30,080 10,000
Interfund Charges 10,960 10,960 10,960 0 0
Total Expenditures 10,960 95,960 95,960 30,080 10,000
Ending Balance $1,549,793 $1,658,830 $1,658,830 $1,843,750 $2,048,750 *Detail of Capital Improvements
Machinery and Equipment 0 85,000 85,000 30,080 10,000
Total Capital Improvements $0 $85,000 $85,000 $30,080 $10,000 Fund Balance: Fund balance is budget to be $2.0 million at the end of FY 2027-28.

Budget Overview: Revenues of $215,000 are budgeted annually during FY 2026-27 and FY 2027-28. Capital equipment is budgeted to be purchased in both Fiscal Years.

Local Cable Infrastructure Fund
018-245
Description: The Local Cable Infrastructure Fund is utilized to account for restricted funds received from Local Cable Companies (video service franchises). These funds are restricted to be used for equipment and infrastructure needs for public, educational, and government programing.

Funding Source: This fund receives revenue from any State video service franchise operating within the City limits. The fee is equal to 1% of the gross revenue of that franchisee.

Legal Basis: The fees collected to support this fund are governed by the State of California "Digital Infrastructure and Video Competition Act" (DIVCA), set forth as Public Utilities Code Section 5800. The City adopted Ordinance No. 1503 on April 6, 2010. The fees collected are restricted to be used for capital costs for public, educational, or government access facilities. 155
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I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $284,714 $294,970 $294,970 $239,550 $239,550 Revenues:

Federal & State Grants 194,663 185,000 185,000 0 0
Investment Earnings 15,595 6,000 6,000 0 0
Total Revenues 210,258 191,000 191,000 0 0
Expenditures:

Contractual Services 200,000 200,000 200,000 0 0
Other Charges 0 46,420 46,420 0 0
Total Expenditures 200,000 246,420 246,420 0 0
Ending Balance $294,972 $239,550 $239,550 $239,550 $239,550 Budget Overview: A portion of two deputy positions are partially funded by a state COPS funding. This fund is being consolidated into the General Fund in FY 2026-2027.

Fund Balance: Fund balance is budgeted to be $239,550 and will be consolidated into the General Fund at the end of FY 2025-

26. Police Grants Fund
002-217
Description: The Police Grants Fund was established in 2001 to track various Federal and State grants, donations to the Police Services programs and narcotic forfeiture monies. These fund public safety activities.

Funding Source: This fund receives revenue from Federal grants (Local Law Enforcement Block Grant - LLEBG), State Citizens Option for Public Safety grant (State COPS). The COPS funding is allocated to the City from the State for the purpose of ensuring public safety and is being used to fund deputy positions.

Legal Basis: The fees collected to support this fund are governed by the provisions of the individual grants and are to be used for programs described above.
156
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I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance -$1,476,407 -$2,547,160 -$2,547,160 -$1,634,240 -$548,100 Revenues:

Other County Grants 28,671 492,950 492,950 150,000 150,000 Trolley Transit Program 0 1,461,990 1,461,990 3,168,830 2,381,250 Investment Earnings -63,325 0 0 0 0
Transfer from General Fund 346,731 459,470 459,470 350,000 350,000 Total Revenues 312,077 2,414,410 2,414,410 3,668,830 2,881,250 Expenditures:

Contractual Services 1,310,419 1,205,930 1,205,930 1,775,790 1,774,790 Capital Outlay - Equipment 0 238,750 238,750 740,000 0
Interdepartmental Charges 72,410 56,810 56,810 66,900 66,900 Total Expenditures 1,382,829 1,501,490 1,501,490 2,582,690 1,841,690 Ending Balance -$2,547,159 -$1,634,240 -$1,634,240 -$548,100 $491,460 Fund Balance: Fund balance is budgeted at $491,460 at the end of FY 2027-28, the deficit in FY 2026-27 is due to anticipated delays in OCTA reimbursements.

Local Transit Program
021-808
Description: The Local Transit Program Fund was established to provide a designated fund for the San Clemente Rides and Trolley transit programs funded by the Orange County Transit Authority under the Measure M2 program. Both programs contain a reimbursement grant with a required match provided by the General fund.

Funding Source: This fund includes grant revenues from the Orange County Transit Authority (OCTA) Measure M2 grants for the SC Rides program and the summer trolley activities. A transfer from General Fund is used to fund the match requirement related to these program activities. Revenue sources include OCTA Measure M2 monies and contributions from the City's General Fund.

Legal Basis: Measure M monies are governed by the Orange County Transportation Authority (OCTA) and are restricted.

Budget Overview: Revenues include Measure M2, project V funds for trolley operations and other County grants to fund the SCRides program. These grants partially fund operations which are subsidized by a General Fund transfer to fund the local match requirement. OCTA grant reimbursements are slow and often received after a years time of the costs incurred.

Expenditures include SCRides program costs are budgeted in the amount of $300,000 and $1.8 million for trolley contractual services, including the addition of the Yellow line in FY 2026-27. These grants have been renewed by OCTA. 157
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $144,299 $293,900 $293,900 $294,560 $95,170 Revenues:

State Planning Grant 485,410 365,830 365,830 124,220 0
Investment Earnings 2,404 2,300 2,300 12,000 3,000
Transfers from General Fund 0 0 0 0 250,000
Total Revenues 487,814 368,130 368,130 136,220 253,000
Expenditures:

Personnel 257,934 241,400 241,400 283,780 296,190
Supplies 1,172 2,660 2,660 2,660 2,660
Contractual Services 59,881 104,180 104,180 27,180 27,180 Interdepartmental Charges 19,230 19,230 19,230 21,990 21,990 Total Expenditures 338,217 367,470 367,470 335,610 348,020 Ending Balance $293,896 $294,560 $294,560 $95,170 $150
Fund Balance: Fund balance is budgeted at $150 at the end of FY 2027-28.

Building Homes & Jobs Act (SB2) Fund
027-821
Description: The Building Homes & Jobs Act (SB2) Fund was established to provide a dedicated source of funding for housing related activities, including updating general plans, community plans, specific plans, and local planning related to implementation of sustainable community strategies or local coastal plans.

Funding Source: This fund includes State grant revenues based on the collection of a document recording fee.

Legal Basis: SB2 monies are governed by the State and are restricted to updating planning documents and land-use ordinances and assisting in homelessness issues.

Budget Overview: Revenues for FY 2026-27 include the City's allocation of the Permanent Local Housing Allocation grant in the amount of $124,220 and FY 2027-28 is supported through a one-time transfer from the General Fund. Expenditures include funding two Outreach staff and contractual services to offer support and provide for other eligible activities under the grant. A transfer to support the fund is budgeted in FY 2027-28 from the General Fund, which will be reduced as additional grant funding is approved.
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Capital Project Funds account for the purchase or construction of major capital facilities.

The Capital Improvement Fund was previously named the Reserve Fund, this Fund name was incorporated into the Budget for FY 2026-27 and FY 2027-28.

Capital Project Funds
Parks
Acquisition and
Development
Fund
Local Drainage
Facilities Fund RCFPP Fund
Public Facilities
Construction
Fee Fund
Developers
Improvement
Fund
Capital
Improvement
Fund
Low/Moderate
Income Housing
In-Lieu Housing
Fund
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r
\..
160
170
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $1,283,231 $929,880 $929,880 $166,920 $4,390 Revenues:

Park Fees 57,939 20,000 20,000 20,000 20,000
Investment Earnings 61,292 33,200 33,200 20,200 8,200
Donation from Private Sources 325,000 0 0 0 0
Transfer from Other Funds 108,290 0 0 0 0
Total Revenues 552,521 53,200 53,200 40,200 28,200
Expenditures:

Capital Improvements* 896,039 1,367,730 806,330 180,000 0 Interfund Charges 9,830 9,830 9,830 22,730 22,730
Total Expenditures 905,869 1,377,560 816,160 202,730 22,730 Ending Balance $929,883 -$394,480 $166,920 $4,390 $9,860 *Detail of Capital Improvements
Steed Park & Vista Bahia Errant Ball 63,666 131,330 131,330 0 0 Steed Park Pickle Ball Courts 144,197 556,400 75,000 0 0 Steed Park Pump Track 688,176 0 0 0 0
Skate Park Expansion-Steed Park 0 200,000 200,000 0 0
Dog Park at San Luis Rey and San Gorg. 0 280,000 200,000 0 0 VHSP Meadows Development 0 200,000 200,000 180,000 0
Total Capital Improvements $896,039 $1,367,730 $806,330 $180,000 $0 Fund Balance: The fund balance is budgeted to be $9,860 at the end of FY 2027-28.

Parks Acquisition and Development Fund
031-862
Description: The Parks Acquisition and Development Fund was established to account for park development fees from all development sources and to control the distribution of funding for required park projects.

Funding Source: The Parks Acquisition and Development Fund is supported by park development fees.

Legal Basis: Revenues allocated to this fund are based on fees regulated by the Quimby Act. The Quimby Act, a 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. The fees collected are based upon the value of an acre of land within the development area. Resources in this fund are restricted.

Budget Overview : Revenues for this fund are primarily derived from development fees and interest on amounts held. Capital projects for FY 2026-27 include $180,000 for Vista Hermosa Sports Park Meadows development. 161
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance:

Res. For Segunda Deschecha 1,992,384 2,006,560 2,006,560 598,680 370,330 Res. For Marblehead Coastal 46,653 31,270 31,270 57,980 56,350 Res. For Other Areas 192,197 133,290 133,290 0 0
Total Beginning Balance $2,231,234 $2,171,120 $2,171,120 $656,660 426,680 Revenues:

Drainage Fees 2,726 500 500 500 500
Investment Earnings 104,880 47,000 47,000 47,000 47,000 Transfer from other funds 100,000 0 0 0 0
Miscellaneous Reimbursements 0 500,000 500,000 0 0
Total Revenues 207,606 547,500 547,500 47,500 47,500
Expenditures:

Capital Improvements* 234,625 2,028,860 2,028,860 0 0
Interfund Charges 33,100 33,100 33,100 19,070 19,070
Interfund Transfers 0 0 0 258,410 0
Total Expenditures 267,725 2,061,960 2,061,960 277,480 19,070 Ending Balance:

Res. For Segunda Deschecha 2,006,561 598,680 598,680 370,330 402,380 Res. For Marblehead Coastal 31,266 57,980 57,980 56,350 52,730 Res. For Other Areas 133,288 0 0 0 0
Total Ending Balance $2,171,115 $656,660 $656,660 $426,680 $455,110 *Detail of Capital Improvements:

Other areas:

M00S05 Montalvo Canyon Outlet 155,759 156,580 156,580 0 0 Segunda Deschecha:

Catch Basin and SD Improvements 57,672 613,980 613,980 0 0 Catch Basin and SD Improvements 2023 8,774 789,490 789,490 0 0 Marblehead Coastal:

Marblehead Coastal SD and WQ Improv 12,420 468,810 468,810 0 0 Total Capital Improvements $234,625 $2,028,860 $2,028,860 $0 $0 Fund Balance: Fund balance will be $455,110 at the end of FY 2027-28.

Local Drainage Facilities Fund
033-841
Description: The Local Drainage Facilities Fund was established in September 1983 to provide for the construction of drainage facilities within development areas. The four separate drainage basin areas within this fund are: Prima Deshecha, Segunda Deshecha, Marblehead Coastal and All Other Areas. Prima Deshecha was fully utilized in prior years.

Funding Source: When a final parcel map or final tract map is filed with the City, a drainage fee is collected for deposit into the Local Drainage Facilities Fund. The monies derived from drainage fees are used to offset the cost of designing and constructing planned local drainage facilities designated in the Master Drainage Plan for the City.

Legal Basis: This fund was established by City Ordinance No. 874. Resources in this fund are restricted.

Budget Overview: A transfer to the Storm Drain fund to partially fund a Segunda Deschecha project is budgeted in FY 2026-27. 162
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $1,268,945 $1,307,620 $1,307,620 $967,170 $979,760 Revenues:

Developer Fees 5,211 1,000 1,000 1,000 1,000
Investment Earnings 63,311 19,500 19,500 21,500 19,500
Total Revenues 68,522 20,500 20,500 22,500 20,500
Expenditures:

Capital Improvements* 17,565 348,670 348,670 0 0
Interfund Charges 12,280 12,280 12,280 9,910 9,910
Total Expenditures 29,845 360,950 360,950 9,910 9,910
Ending Balance $1,307,622 $967,170 $967,170 $979,760 $990,350 *Detail of Capital Improvements:

Ave Pico Bike/Pedestrian Path Phase I 0 224,390 224,390 0 0 Pico Widening: I-5 to Frontera 17,565 124,280 124,280 0 0 Total Capital Improvements $17,565 $348,670 $348,670 $0 $0 Budget Overview: No Captial Outlay is budgeted in either budget years.

Fund Balance: A fund balance of $990,350 is budgeted at the end of FY 2027-28.

RCFPP Fund
020-419
Description: On March 15, 1989, the City Council of the City of San Clemente adopted the Regional Circulation Financing and Phasing Program (RCFPP). The RCFPP Fund is used to pay for the cost of installing major roadway systems in the City.

Funding Source: The RCFPP establishes the traffic impact fee schedule to be assessed on all new development on certain benefit zones within the City as well as the County portion of Talega.

Legal Basis: The RCFPP Fund was established by City Ordinance No. 998. Resources in this fund are restricted for the purpose of the development fees received.
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance:

Res. For Public Safety Const. 1,140,004 765,350 765,350 473,410 509,160 Res. For Civic Center Const. 185,464 0 0 4,000 8,140
Total Beginning Balance $1,325,468 $765,350 $765,350 $477,410 $517,300 Revenues:

Public Safety Const. Fees 52,996 20,000 20,000 20,000 20,000 Civic Center Const. Fees -1,857 4,000 4,000 4,000 4,000 State Grants 300,000 0 0 0 0
Interest Earnings 60,218 36,500 36,500 30,500 28,500
Total Revenues 411,357 60,500 60,500 54,500 52,500
Expenditures:

Contractual Services 0 89,990 89,990 0 0
Capital Improvements* 955,664 242,640 242,640 0 0
Interfund Charges 15,810 15,810 15,810 14,610 14,610
Total Expenditures 971,474 348,440 348,440 14,610 14,610 Ending Balance:

Res. For Public Safety Const. 765,351 473,410 473,410 509,160 542,830 Res. For Civic Center Const. 0 4,000 4,000 8,140 12,360 Total Ending Balance $765,351 $477,410 $477,410 $517,300 $555,190 Budget Overview: No capital projects are budgeted for FY 2026-27 and FY 2027-28.

Fund Balance: Fund balance will end FY 2027-28 budgeted at $555,190.

Public Facilities Construction Fee Fund
030-818
Description: The Public Facilities Construction Fee Fund was established in May 1996 to combine the Public Safety Construction Fund, Parking (Beach Parking Impact Fee) Fund, and the related fees with a third fee - a Civic Center fee. The ordinance establishing this fund was developed to combine the developer fees collected for each of these funds based upon several studies. The City stopped collecting the Beach Parking Impact Fee as the result of a court order in FY 2015-

16. Funding Source: The public facilities construction fee applies to new development, and the charge is collected at the time the building permit is issued. This fee was established to provide for future needs in the area of construction of public facilities and yet only charge new developments their fair share of the impacts resulting from this new development.

Legal Basis: This fund was established by City Ordinance No. 1174. Resources in this fund are restricted for the purpose of the development fees received.
164
174
Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Improvements: FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Civic Center Construction Reserve:

Negocio 2nd Floor 189,821 0 0 0 0
Public Safety Construction Reserve:

OCSD Substation 910 Calle Negocio 42,007 0 0 0 0
City Hall Generator Installation 723,836 242,640 242,640 0 0 Total Capital Improvements $955,664 $242,640 $242,640 $0 $0 Public Facilities Construction Fee Fund
165
175
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance:

Res. For Development Improvements 2,036,254 2,110,250 2,110,250 2,150,100 2,188,155 Res. For Bridge Maintenance 2,204,707 2,430,040 2,430,040 2,618,140 2,808,785 Res. For Storm Drain (Seg. Deshecha) 982,673 0 0 0 0
Total Beginning Balance $5,223,634 $4,540,290 $4,540,290 $4,768,240 $4,996,940 Revenues:

Bridge Maintenance 129,258 128,450 128,450 129,450 129,450 Investment Earnings 227,641 111,450 111,450 111,450 111,450 Total Revenues 356,899 239,900 239,900 240,900 240,900
Expenditures:

Transfer to Other Funds 1,028,290 0 0 0 0
Interfund Charges 11,950 11,950 11,950 12,200 12,200
Total Expenditures 1,040,240 11,950 11,950 12,200 12,200 Ending Balance:

Res. For Development Improvements 2,110,249 2,150,100 2,150,100 2,188,155 2,224,759 Res. For Bridge Maintenance 2,430,044 2,618,140 2,618,140 2,808,785 3,000,881 Total Ending Balance $4,540,293 $4,768,240 $4,768,240 $4,996,940 $5,225,640 Fund Balance: Fund balance is budgeted at $5.2 million at the end of FY 2027-28.

Developers Improvement Fund
037-867
Description: The Developers Improvement Fund is used to account for the proceeds of developer settlements and the future costs of maintaining and/or improving the streets or other infrastructure in the related development tracts. The Bridge Maintenance Reserve is derived fees under the Talega Development and the Marblehead Development Agreements.

This fee is to be used for maintaining, repairing, restoring and replacing the Talega and Marblehead bridges. Any other reserves account for fees received under the applicable developer agreements, including Marblehead bluff impacts, Marblehead water quality improvements, a conference center and other agreement specified purposes.

Funding Source: Funding for the Developers Improvement Fund is derived from developer agreements and fees.

Legal Basis: This fund is governed by court-ordered developer settlements and legal contracts. Resources in this fund are restricted based on developer agreements.

Budget Overview: No capital projects are budgeted for FY 2026-27 or FY 2027-28. 166
176
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance:

Accrued Leave 945,472 1,120,780 1,120,780 0 0
Capital Improvement 0 0 0 6,256,910 9,361,910
Capital Equipment 2,459,722 2,692,160 2,692,160 0 0
Facilities Maintenance 6,648,899 5,824,700 5,824,700 0 0 Park Asset Replacement 2,802,724 3,160,420 3,160,420 0 0 Total Beginning Balance $12,856,817 $12,798,060 $12,798,060 $6,256,910 $9,361,910 Revenues:

Investment Earnings 667,406 320,000 320,000 300,000 340,000 Contributions from Developers 29,395 28,700 28,700 30,000 30,000 Governmental Grants 35,591 0 0 105,000 0
Other Donations 20,000 0 0 0 0
Miscellaneous Reimbursements 0 0 0 2,750,000 0
Interfund Transfers 700,000 400,000 400,000 5,200,000 0 Interfund Charges 795,940 805,940 805,940 0 0
Total Revenues 2,248,332 1,554,640 1,554,640 8,385,000 370,000 Expenditures:

Accrued Leave 73,769 200,000 1,148,810 0 0
Capital Equipment 153,747 696,520 696,520 0 0
Facilities Maintenance 1,916,190 3,513,850 3,513,850 0 0 Contractual Services 0 0 0 155,000 100,000
Capital Outlay 0 0 0 5,125,000 1,520,000
Park Asset Replacement 163,389 2,736,610 2,736,610 0 0
Total Expenditures 2,307,095 7,146,980 8,095,790 5,280,000 1,620,000 Ending Balance:

Accrued Leave 1,120,783 948,810 0 0 0
Capital Improvement 0 0 0 9,361,910 8,783,100
Capital Equipment 2,692,156 2,320,750 2,320,750 0 0
Facilities Maintenance 5,824,698 3,203,330 3,203,330 0 0 Park Asset Replacement 3,160,417 732,830 732,830 0 0
Ending Balance $12,798,054 $7,205,720 $6,256,910 $9,361,910 $8,111,910 Expenditures by Category:

Personnel 73,769 200,000 200,000 0 0
Capital Outlay* 350,818 5,757,070 5,757,070 5,125,000 1,520,000 Transfers to Other Funds 1,882,509 1,189,910 2,138,720 0 0 Total $2,307,096 $7,146,980 $8,095,790 $5,125,000 $1,520,000 Fund Balance: Fund Balance is budgeted to be $8.1 million by the end of FY 2027-28.

Capital Improvement Fund
014-811
Description: The Capital Improvement Fund consists of amounts assigned by City Council related to Capital activities. This fund was previously called the Reserve Fund and utilized to accumulate assets for Capital Equipment, Park Asset Replacement and Facilities Maintenance Reserves. This fund holds assets for the Capital Improvement Program projects that related to the activities of the General Fund. Grants and other one-time revenues related to capital activities are also placed into this fund.

Funding Source: Sources of revenue used to establish these reserves include one-time transfers from the General Fund, grant revenues, developer contributions, reimbursements, donations, and other revenues.

Legal Basis: Resources in this fund are assigned for the specific purpose the revenues were allocated.

Budget Overview: Significant projects include Del Mar Undergrounding ($2.75 million), which will be reimbursed from funds held by SDG&E, Sand Replenishment ($1.0 million) and Pier Improvements/Repairs ($700,000). Other projects include tennis court repairs and various replacement of city assets. Contract services are related to repairs. 167
177
Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Improvements: FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Capital Equipment Reserve:

Machinery and Equipment 12,452 60,000 60,000 0 0
Aquatic Center Pump Room Equip Replace 64,396 486,520 486,520 0 0 Traffic Signal Camera Upgrades 76,899 150,000 150,000 0 0 Facilities Maintenance Reserve:

Pier Fire Suppression System Replacement 0 181,150 181,150 0 0 Beach Trail Steel Bridges Maintenance 29,735 199,150 199,150 0 0 San Luis Rey Park Restroom Replacement 3,947 743,640 743,640 200,000 0 Replace Cooling Towers at City Hall 0 1,200,000 1,200,000 0 0 Capital Outlay
Sand Replenishment 0 0 0 0 1,000,000
City Hall Emergency Operations Center 0 0 0 150,000 0
Del Mar Undergrounding 0 0 0 2,750,000 0
Senior Center HVAC Replacements 0 0 0 150,000 0
Ole Hanson Beach Club Repairs 0 0 0 160,000 0
Bonito Canyon Park Tennis Courts 0 0 0 260,000 0
San Luis Rey Park Tennis Courts 0 0 0 42,000 0
San Gorgonio Park Tennis Courts 0 0 0 68,000 0
Pier Improvements/Repairs 0 0 0 700,000 0
Shoreline Monitoring 0 0 0 100,000 100,000
T Street Overpass Assessment/Rehab 0 0 0 100,000 0
Lifeguard Tower Replacements 0 0 0 120,000 120,000
Park Asset Reserve:

San Gorgonio Park Playground Replacement 150,000 0 0 0 0 LPVH 3 Artificial Fields Synth Turf Replace 13,389 1,986,610 1,986,610 0 0 Talega Park Playground Equip Replacement 0 250,000 250,000 0 0 Forster Ranch Playground Equip Replace 0 500,000 500,000 0 0 Tierra Grande Park Playground Equipment 0 0 0 325,000 0 Liberty Park Playground Equipment 0 0 0 0 300,000
Total Capital Improvements $350,818 $5,757,070 $5,757,070 $5,125,000 $1,520,000 Capital Improvement Fund
168
178
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance
Res. For Low/Mod Housing $414,808 946,360 946,360 928,650 873,610 Res. For Long-term Housing Loans $2,639,110 2,236,630 2,236,630 2,236,630 2,236,630 Total Beginning Balance $3,053,918 $3,182,990 $3,182,990 $3,165,280 $3,110,240 Revenues:

Investment Earnings 78,557 17,500 17,500 25,500 17,500
Transfers from General Fund 55,723 0 0 0 0
Total Revenues 134,280 17,500 17,500 25,500 17,500
Expenditures:

Contractual Services 0 30,000 30,000 75,000 75,000
Interfund Charges 5,210 5,210 5,210 5,540 5,540
Total Expenditures 5,210 35,210 35,210 80,540 80,540
Ending Balance
Res. For Low/Mod Housing 946,363 928,650 928,650 873,610 810,570 Res. For Long-term Housing Loans 2,236,625 2,236,630 2,236,630 2,236,630 2,236,630 Ending Balance $3,182,988 $3,165,280 $3,165,280 $3,110,240 $3,047,200 Fund Balance: The fund balance is budgeted to be $3.0 million at the end of FY 2027-28, with approximately $2.2 million representing long term loan receivables.

Low/Moderate Income Housing
038-809
Description: The Low/Moderate Income Housing capital projects fund is used to account for the former Redevelopment Agency low and moderate income assets including loan agreements. This fund provides capital assistance loans for low to moderate income development within the City of San Clemente and activites to support housing assistance, including transition housing.

Funding Source: Funding for the Low/Moderate Income Housing fund is derived from income assets and loan agreements transferred from the former Redevelopment Agency to the City with Oversight Board and State of California approval. Funding is provided through repayments of loan amounts.

Legal Basis: This Fund is governed by agreements and loans made by the former Redevelopment Agency.

Budget Overview : Revenues from interest earning are budgeted for FY 2027-28. 169
179
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance
Res. For In-Lieu Afford. Housing 1,943,688 2,085,070 2,085,070 2,126,870 2,163,670 In-Lieu Loans (Affordable Housing) 9,219,414 9,354,830 9,354,830 9,354,830 9,354,830 Total Beginning Balance $11,163,102 $11,439,900 $11,439,900 $11,481,700 $11,518,500 Revenues:

Investment Earnings 277,797 42,800 42,800 42,800 42,800 Total Revenues 277,797 42,800 42,800 42,800 42,800
Expenditures:

Contractual Services 0 5,000 5,000 5,000 5,000
Interfund Charges 1,000 1,000 1,000 1,000 1,000
Total Expenditures 1,000 6,000 6,000 6,000 6,000
Ending Balance
Res. For In-Lieu Afford. Housing 2,085,072 2,126,870 2,126,870 2,163,670 2,200,470 In-Lieu Loans (Affordable Housing) 9,354,827 9,354,830 9,354,830 9,354,830 9,354,830 Ending Balance $11,439,899 $11,476,700 $11,476,700 $11,518,500 $11,555,300 Fund Balance: The fund balance is budgeted to be $11.6 million at the end of FY 2027-28, with $9.4 million representing longterm loan receivables.

In-Lieu Housing Fund
039-866
Description: The In-Lieu Affordable Housing fund is used to account for receipts from developers who choose to pay in-lieu fees instead of constructing affordable housing units. This fund provides capital assistance for construction or permanent loans for affordable housing projects for construction, rehabilitation, or conversion from market rate.

Funding Source: Funds in the Reserve for In-Lieu Affordable Housing fund are derived from revenues from developers who choose to pay in-lieu fees instead of constructing affordable housing units in accordance with the City’s Inclusionary Housing Program. Funds in the In-Lieu Loans (Affordable Housing) fund are previously loaned funds the City expects to receive repayment on in the future.

Legal Basis: Resources in this fund are governed by the City’s Inclusionary Housing Program.

Budget Overview : Revenues include investment earnings of $42,800 annually, not including interest on loan balances. 170
180
Enterprise funds are used to account for City operations that are financed and operated in a manner similar to private business enterprises. The intent in using this type of fund is to determine that the costs (expenses, including depreciation) of funding these services to the general public are financed or recovered primarily through user charges.

The Clean Ocean Fund at the end of FY 2025-26 will be closed.

Enterprise Funds
Water
Fund
Water
Operating
Water
Depreciation
Reserve
Water Acreage
Fee Reserve
Water Other
Agency
Depreciation
Reserve
Sewer
Fund
Sewer
Operating
Sewer
Depreciation
Reserve
Sewer
Connection Fee
Reserve
Sewer Other
Agency
Depreciation
Reserve
Storm
Drain
Fund
Storm Drain
Operating
Storm Drain
Utility
Depreciation
Reserve
Golf Fund
Golf Operating
Golf
Depreciation
Reserve
Golf
Improvement
Reserve
Clean
Ocean
Fund
Solid
Waste
Fund
171
181
'
,I ,I ,I
172
182
Shading indicates contracted services
Enterprise Funds
Department Overview:

Utilities consists of the Water, Sewer, Storm Drain, and Solid Waste Funds.

Utilities is primarily overseen by the Public Works Director who is responsible for operation and maintenance of water, recycled water, sewer and storm drain infrastructure, water conservation, providing safe water supplies, providing proper sanitary disposal of waste and improving local water quality.

The Golf Fund is considered a part of Beaches, Parks, and Recreation activities. The Golf Fund accounts for the operation and maintenance of the San Clemente Muncipal Golf Course for recreation purposes.

Solid waste activities are split between the Public Works Director and the Beaches, Parks and Recreation Director.

City Manager
Public Works Director
Water
Sewer
Storm Drain
Golf
Solid Waste
Beaches, Parks, and
Recreation Director
Public Works Director
Utilities Manager
173
183
Actual Amended Bud. Adjusted Budget Budget
Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Water Operating 27,971,766 30,391,420 30,391,420 30,303,110 32,071,730 Sewer Operating 12,112,098 13,338,440 13,338,440 13,682,820 13,953,690 Storm Drain Operating 1,558,617 1,753,160 1,753,160 2,198,040 2,256,010 Clean Ocean Operating 1,908,747 2,277,590 2,277,590 0 0 Solid Waste 351,044 252,800 252,800 1,185,480 1,145,200 Total Utilities Operating Budget $43,902,272 $48,013,410 $48,013,410 $47,369,450 $49,426,630 Actual Amended Bud. Adjusted Budget Budget
Summary FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Golf Operating 4,340,163 3,499,700 3,264,700 5,199,450 5,104,840 Total Golf Operating Budget $4,340,163 $3,499,700 $3,264,700 $5,199,450 $5,104,840 Key Initiatives
• Complete a Sewer Cost of Service study to modify rates that will result in an updated sewer rate model. • Begin construction on Reeves Pump station project.
• Complete Asset Management Plan for water and sewer infrastructure. • Begin city wide copper replacement (main lines).
• Seek funding sources and begin construction on Recycled Water Quality Improvement Project. • Finalize the Lead and Copper Rule Revisions and complete a system-wide survey. • Maintain the Municipal Golf Course by prioritizing preventative maintenance to control costs. • Initiate Golf Course Master Plan improvements, including irrigation, bunkers, and practice facilities.

Enterprise Funds
Operating Summary
174
184
Purpose Statement
Water Operating Division Services
• Operate, maintain and repair approximately 230 miles of water lines, 15 reservoirs, 16 pump stations, and 56 pressure reducing stations and 17,600 services.
• Operate and maintain 2 groundwater wells and a treatment facility that produces approximately 400 acre feet of potable water per year.
• Produce and sell approximately 800 acre feet per year of recycled water. • Promote and develop short and long term water conservation programs to meet regulatory requirements and to reduce water usage in drought years.
• Evaluate regional water projects to improve reliability and emergency storage.

Actual Amended Bud. Adjusted Budget Budget
FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28
Beginning Balance: $5,367,489 $2,729,860 $2,729,860 $1,147,320 $1,865,222 Revenue Summary
Services Charges 22,564,849 25,319,610 25,319,610 24,616,000 27,225,000 Other Water Charges 1,493,843 2,018,830 2,018,830 2,069,940 2,127,550 Investment Earnings 268,323 55,440 55,440 68,572 116,670 Other Revenues 1,007,119 1,415,000 1,415,000 1,266,500 1,266,500 Transfer from Depreciation Reserves 0 0 0 3,000,000 0
Total $25,334,134 $28,808,880 $28,808,880 $31,021,012 $30,735,720 Program Summary
Water Administration 3,049,651 3,081,920 3,081,920 2,430,580 2,501,810 Water Production 16,592,929 17,781,000 17,781,000 18,393,750 19,761,720 Transmission/Distribution 4,990,284 5,944,930 5,944,930 5,815,350 6,021,950 Water Conservation 365,110 519,770 519,770 518,620 528,040 Water Reclamation 2,973,792 3,063,800 3,063,800 3,144,810 3,258,210 Total Water $27,971,766 $30,391,420 $30,391,420 $30,303,110 $32,071,730 Ending Balance: $2,729,857 $1,147,320 $1,147,320 $1,865,222 $529,212 Category Expenditure Summary
Personnel 4,295,497 4,688,890 4,688,890 5,113,420 5,387,540 Supplies 11,682,569 13,144,390 13,144,390 13,796,980 15,039,070 Contractual Services 3,544,386 4,458,950 4,458,950 4,464,310 4,714,680 Other Charges 4,673,489 4,632,930 4,632,930 3,789,950 3,795,720 Interdepartmental Charges 1,883,020 1,965,560 1,965,560 2,237,830 2,234,110 Debt Service 892,805 900,700 900,700 900,620 900,610
Total Program Budget 26,971,766 29,791,420 29,791,420 30,303,110 32,071,730 Interfund Transfers 1,000,000 600,000 600,000 0 0
Total Water Budget $27,971,766 $30,391,420 $30,391,420 $30,303,110 $32,071,730 Personnel Summary 25.35 25.35 25.85 25.85 25.84
Significant Changes:

Personnel costs increase based on the implemented Class and Compensation study and increased costs in Social security, state disability, and retirement costs.

Supplies primarily increase as a result of higher purchased water costs which increased $0.8 million.

Contractual services are flat as maintenance costs increase is offset by professional services budget decrease.

Other charges decrease based on lower reserve charges to the Deprecation reserves until a asset study is completed.

Interfund transfers decrease as a result of lower capital funding transfers in future years.

Water Fund
Water Operating Division Summary
To provide adequate supplies of potable and recycled water while meeting health and quality standards of the State Water Resources Control Board - Drinking Water Division and Federal Safe Water Drinking Act. 175
185
Purpose Statement
Sewer Operating Division Services
• Operate, maintain and repair approximately 180 miles of sewer lines, 12 sewer lift stations, and Water Reclamation Plant. • Treat wastewater through a series of physical, biological and chemical treatment processes to meet regulatory requirements. • Manage discharge of treated wastewater through the regional Land/Ocean Outfall with South Orange County Wastewater Authority (SOCWA).
• Administer Pre-Treatment and Fat, Roots, Oil and Grease Program. • Provide required regulatory reporting for the Water Reclamation Plant processes and operation of plant equipment. • Process approximately 5,500 wet tons of solids through thickening, anaerobic digestion, and dewatering which is hauled to a composting facility for beneficial use.

Actual Amended Bud. Adjusted Budget Budget
FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28
Beginning Balance: $1,440,575 $1,551,810 $1,551,810 $776,926 $408,901 Revenue Summary
Services Charges Services Charges 11,113,769 11,619,000 11,619,000 12,150,000 12,663,000 Sewer Permits 0 1,000 1,000 500 500
Other Sewer Charges 1,043,161 921,070 921,070 1,044,870 1,044,530 Investment Earnings Investment Earnings 66,401 22,486 22,486 119,425 75,218 Total $12,223,331 $12,563,556 $12,563,556 $13,314,795 $13,783,248 Program Summary
Sewer Administration 1,669,116 1,918,060 1,918,060 2,156,570 2,202,040 Treatment 6,047,653 6,428,290 6,428,290 6,770,950 6,965,140 Collection 4,395,329 4,992,090 4,992,090 4,755,300 4,786,510 Total Sewer $12,112,098 $13,338,440 $13,338,440 $13,682,820 $13,953,690 Ending Balance: $1,551,808 $776,926 $776,926 $408,901 $238,459 Category Expenditure Summary
Personnel 3,212,117 3,557,080 3,557,080 3,934,320 4,142,510 Supplies 968,280 1,088,800 1,088,800 1,295,600 1,334,200 Contractual Services 2,595,665 3,472,090 3,472,090 3,165,190 3,277,560 Other Charges 3,614,216 3,383,640 3,383,640 3,471,860 3,473,520 Interdepartmental Charges 1,538,640 1,636,830 1,636,830 1,723,590 1,725,900 Total Program Budget 11,928,918 13,138,440 13,138,440 13,590,560 13,953,690 Non-Operating Expenditures/Transfers Capital/One-Time Studies 0 0 0 92,260 0 Interfund Transfers 183,180 200,000 200,000 0 0
Total Sewer Budget $12,112,098 $13,338,440 $13,338,440 $13,682,820 $13,953,690 Personnel Summary 26.00 26.00 26.00 26.23 26.23
Significant Changes:

Personnel costs increase based on the implemented Class and Compensation study and increased costs in Social Security, state disability, medical and retirement costs.

Supplies increase due primarily to higher chemical costs increasing $160,000 based on recent pricing.

Contractual services decrease due slightly lower budgets in property insurance, electricity, and professional services.

Other charges increase due to NPDES permit costs being partially allocated to sewer from Clean Ocean.

Sewer Fund
Sewer Operating Division Summary
To provide maintenance and operation of the City’s sanitary sewer collection and treatment system infrastructure in order to ensure wastewater service to protect public health and safety, in compliance with all Local, State and Federal regulatory requirements.
176
186
Purpose Statement
Storm Drain Operating Division Services
• Operate, maintain, clean and inspect approximately 77 miles of storm drain lines and 1,500 catch basins. • Operate and maintain clean water quality projects including Segunda Deshecha Canada facility and various vortex units throughout the City.
• Administer storm drain related capital improvement projects. • Respond to storm water municipal code violations and complaints, educate the public and issue citations if warranted.

Actual Amended Bud. Amended Bud. Budget Budget
FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28
Beginning Balance: $152,940 $274,160 $274,160 $175,460 $105,470 Revenue Summary
Services Charges 1,179,284 1,175,000 1,175,000 1,175,000 1,175,000 Other Revenue 20 5,050 5,050 3,050 3,050
Investment Earnings 535 24,410 24,410 0 0
Interfund Transfers 500,000 450,000 450,000 950,000 1,000,000 Total $1,679,839 $1,654,460 $1,654,460 $2,128,050 $2,178,050 Program Summary
Storm Drain Administration 102,065 119,830 119,830 543,920 574,170 Storm Drain Maintenance 1,456,552 1,633,330 1,633,330 1,654,120 1,681,840 Total Storm Drain $1,558,617 $1,753,160 $1,753,160 $2,198,040 $2,256,010 Ending Balance: $274,162 $175,460 $175,460 $105,470 $27,510 Category Expenditure Summary
Personnel 363,565 528,580 528,580 543,050 569,070
Supplies 7,622 10,500 10,500 10,760 11,020
Contractual Services 106,367 203,390 203,390 383,410 390,980 Other Charges 975,373 890,000 890,000 1,146,500 1,148,750 Interdepartmental Charges 105,690 120,690 120,690 114,320 136,190 Total Program Budget 1,558,617 1,753,160 1,753,160 2,198,040 2,256,010 Non-Operating Expenditures Capital/One-Time Studies 0 0 0 0 0 Interfund Transfers 0 0 0 0 0
Total Storm Drain Budget $1,558,617 $1,753,160 $1,753,160 $2,198,040 $2,256,010 Personnel Summary 2.40 2.40 2.40 2.80 2.80
Significant Changes:

Personnel costs increase from staffing modifications allocating a portion of a position previously funded by Clean Ocean.

Contractual services increase due to the absorption of costs for inspections and Poche operations previously funded by Clean Ocean fund.

Other charges increase primarily as a result of the NPDES permit fees being paid for from the Storm Drain fund. These were previously funded through the Clean Ocean Fund along with some contractual service costs.

Storm Drain Fund
Storm Drain Operating Division Summary
To provide uninterrupted storm drainage service that is operated and maintained in compliance with all regulatory requirements mandated by the State Water Resources Control Board under the Clean Water Act through a National Pollution Discharge Elimination System (NPDES) program - MS4 Storm Water Permit. 177
187
Purpose Statement
Clean Ocean Operating Division Services
• Conduct inspections of municipal sites/facilities, commercial businesses and industrial facilities and provide feedback on best management practices.
• Investigate surface water quality conditions and implement solutions to minimize and mitigate or eliminate pollutants entering or discharging from the storm drain system.
• Perform street sweeping related activities to prevent ocean drainage of street debris. • Conduct inspections of post-development treatment control devices/structures.

Actual Amended Bud. Adjusted Budget Budget
FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28
Beginning Balance: $85,064 -$205,540 -$205,540 $0 $0
Revenue Summary
Urban Runoff Fee 150 70 70 0 0
Street Sweeping Fee 211,505 330,000 330,000 0 0
County Grants 0 578,000 921,680 0 0
Violations/Citations 211,324 312,000 312,000 0 0
Other Revenue 25,835 0 537,380 0 0
Investment Earnings -670 15,500 15,500 0 0
Interfund Transfers 1,170,000 366,500 366,500 0 0
Total $1,618,144 $1,602,070 $2,483,130 $0 $0
Program Summary
Storm Water Permit Compliance 823,696 957,670 957,670 0 0 Street Cleaning 644,648 572,600 572,600 0 0
Clean Ocean Improvements 440,403 747,320 747,320 0 0
Total Clean Ocean $1,908,747 $2,277,590 $2,277,590 $0 $0 Ending Balance: -$205,539 -$881,060 $0 $0 $0
Category Expenditure Summary
Personnel 197,707 203,900 203,900 0 0
Supplies 4,145 4,500 4,500 0 0
Contractual Services 1,303,616 1,298,040 1,298,040 0 0
Other Charges 213,545 280,000 280,000 0 0
Interdepartmental Charges 189,440 184,440 184,440 0 0
Total Program Budget 1,908,453 1,970,880 1,970,880 0 0
Capital/One-Time Studies 0 306,710 306,710 0 0
Total Clean Ocean Budget $1,908,453 $2,277,590 $2,277,590 $0 $0 Personnel Summary 1.00 1.00 1.00 0.00 0.00
Significant Changes:

As the Clean Ocean fee no longer being received, the remaining revenue sources and costs are allocated to various other funds based on appropriate resources. Solid Waste and Storm Drain funds are the main funds addressing these actvities.

Clean Ocean Fund
Clean Ocean Operating Division Summary
To protect and improve local surface water quality by addressing storm water and urban runoff discharges and managing the City's storm water drainage system in compliance with applicable State and Federal regulations. 178
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Purpose Statement
Solid Waste Operating Division Services
• Implement recycling and other waste reduction programs to comply with State waste diversion requirements per AB939, AB1826, AB1594 and SB1383 mandates. • Provide public education and assistance to residents, business and schools to increase recycling and reduce waste. • Participate in regional solid waste and recycling planning. • Administer and oversee the City's solid waste and recycling collection service contract. • Ensure compliance with City solid waste codes, ordinances, and requirements. • Oversee street sweeping related contract activities to clear street debris.

Actual Amended Bud. Adjusted Budget Budget
FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28
Beginning Balance: $518,591 $434,290 $434,290 $402,340 $285,960 Revenue Summary
Solid Waste Charges 233,611 207,150 207,150 207,150 207,150 Fines and Permits 9,089 9,200 9,200 319,200 319,200
Street Sweeping Fees 0 0 0 338,250 346,710
Investment Earnings 24,047 4,500 4,500 4,500 4,500
Transfers from General Fund 0 0 0 200,000 0
Total $266,747 $220,850 $220,850 $1,069,100 $877,560
Program Summary
Recycling 351,044 252,800 252,800 294,670 309,910
Street Cleaning 0 0 0 890,810 835,290
Total Solid Waste $351,044 $252,800 $252,800 $1,185,480 $1,145,200 Ending Balance: $434,294 $402,340 $402,340 $285,960 $18,320 Category Expenditure Summary
Personnel 146,470 133,860 133,860 161,650 174,520
Supplies 13,235 16,880 16,880 17,650 18,140
Contractual Services 42,950 20,810 20,810 902,580 849,400 Other Charges 92,579 24,680 24,680 20,870 20,890
Interdepartmental Charges 55,810 56,570 56,570 82,730 82,250 Total Program Budget 351,044 252,800 252,800 1,185,480 1,145,200 Capital/One-Time Studies 0 0 0 0 0
Interfund Transfers 0 0 0 0 0
Total Solid Waste Budget $351,044 $252,800 $252,800 $1,185,480 $1,145,200 Personnel Summary 1.00 1.00 1.00 1.00 1.00
Significant Change:

Revenues increase as parking citation revenues and the street sweeping fee are now reported in this fund.

Contractual services increase due to shifting street sweeping services from the Clean Ocean fund in FY 2026-27.

Solid Waste Fund
Solid Waste Operating Division Summary
To protect and improve the City's local environment by maximizing recycling, and minimizing waste, through effective public education, extensive waste reduction and recycling programs, and compliance with multiple State diversion mandates as defined in AB939, AB1826, AB1594 and SB1383.
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Purpose Statement
Golf Operating Division Services
•Provide recreational golf opportunities.
•Maintain the golf course at level B during peak season. •Administer the pro-shop and food and beverage concessions contracts.

Actual Amended Bud. Adjusted Budget Budget
FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28
Beginning Balance: $2,521,988 $2,352,160 $2,352,160 $2,719,848 $1,678,476 Revenue Summary
Golf Fees 3,039,096 2,550,000 2,550,000 3,119,910 3,119,910 Registration Fees 136,027 101,200 101,200 122,960 122,960 Concessions 882,381 942,000 942,000 866,280 866,280
Other Revenue -3,964 0 0 0 0
Investment Earnings 116,791 39,189 39,188 48,928 29,303 Total $4,170,331 $3,632,389 $3,632,388 $4,158,078 $4,138,453 Program Summary
Golf Course Maintenance 4,082,472 3,256,430 3,021,430 4,944,510 4,847,440 Starter Operations Marshals/Concessions 257,691 243,270 243,270 254,940 257,400 Total Golf Operating $4,340,163 $3,499,700 $3,264,700 $5,199,450 $5,104,840 Ending Balance: $2,352,156 $2,484,849 $2,719,848 $1,678,476 $712,089 Category Expenditure Summary
Personnel 1,175,756 1,269,150 1,269,150 1,318,190 1,375,950 Supplies 272,850 267,050 267,050 292,870 309,950
Contractual Services 799,281 755,450 755,450 875,050 702,480 Other Charges 219,159 351,250 351,250 214,270 214,270
Interdepartmental Charges 582,030 586,800 586,800 710,070 713,190 Debt Service 1,252,083 235,000 0 0 0
Total Program Budget 4,301,159 3,464,700 3,229,700 3,410,450 3,315,840 Interfund Transfers 39,004 35,000 35,000 1,789,000 1,789,000 Total Golf Budget $4,340,163 $3,499,700 $3,264,700 $5,199,450 $5,104,840 Personnel Summary 10.00 10.00 10.00 10.00 10.00
Significant Changes:

Personnel costs increase based on merit increases and anticipated staffing levels.

Supply costs increases are based on the horticultural supplies budget increasing approximately $18,000.

Contractual services decrease due to staff vacancies being addressed through contract services in FY 2023-24 and tree damages. Additional increases were also budgeted in utilities including water and electric costs.

Debt service decreases as the internal loan was fully paid in FY 2024-25.

Interdepartmental costs increase for General Fund and fleet overhead charges.

Golf Fund
Golf Operating Division Summary
Provide residents and visitors of San Clemente with a well maintained, sustainable, and financially self sufficient golf course for public recreation.
180
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $24,165,199 $27,778,370 $27,778,370 $12,048,888 $9,753,177 Additions:

Depreciation Funded 1,936,732 1,860,000 1,860,000 1,860,000 1,860,000 Depreciation Asset Model 1,848,000 1,848,000 1,848,000 1,000,000 1,000,000 Investment Earnings 1,208,027 564,148 564,148 720,129 610,064 Transfer from Water Operating 1,000,000 500,000 500,000 0 0 Total Additions 5,992,759 4,772,148 4,772,148 3,580,129 3,470,064 Deductions:

Contractual Services 1,151,417 2,174,720 2,174,720 1,105,000 1,205,000 Capital Improvements* 1,052,385 20,811,900 17,041,120 1,500,000 3,500,000 Interdepartmental Charges 50,790 60,790 60,790 45,840 45,840 Transfer to General Fund 25,000 25,000 25,000 25,000 25,000 Transfer to Street Improvement 100,000 100,000 100,000 200,000 200,000 Transfer to Water Operating 0 0 0 3,000,000 0
Transfer to Water Acreage Fund 0 1,100,000 1,100,000 0 0 Total Deductions 2,379,592 24,272,410 20,501,630 5,875,840 4,975,840 Ending Balance $27,778,366 $8,278,108 $12,048,888 $9,753,177 $8,247,401 Budget Overview: Capital improvement projects include Pico Booster Pump Station pump replacement ($1.5 million) budgeted for FY 2026-27 and a $3.0 million one-time transfer to meet water operating fund needs. Capital Improvements of $3.5 million include the Reata Pump Station rehabiliation and Acapulco Pump Station rehabiliation in FY 2027-28. Contractual costs include Meter Replacements, Water System Rehabilitation, and Valve Replacement Program in both years, with other maintenance items included.

Net Working Capital Balance: The ending net working capital will be $8.2 million at the end of FY 2027-28.

Water Depreciation Reserve
052-466
Description: The Water Depreciation Reserve is set up to account for funds set aside for replacement of Water Fund equipment that has reached the end of its useful life and for major repairs to the water system infrastructure. Depreciation is considered a normal operating expense, and funds are received from the general operating account. Depreciation charges are computed by dividing the initial cost of the item by the projected useful life of the item. A Water Asset Model determines depreciation contributions for major repairs to system infrastructure. These processes assure that funds will be available to purchase replacement equipment and rebuild water system infrastructure when equipment or infrastructure is no longer serviceable.

Funding Source: Depreciation on capital assets is the major source of funding for this program.

Legal Basis: This fund was established by City Ordinance No. 874. Resources in this program are assigned. 181
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Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Improvements: FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Machinery & Equipment 0 60,000 60,000 0 0
Reata Pump Stations Rehab 370 79,490 79,490 0 3,200,000 Blanco Pump Station Rehabilitation 0 2,852,590 2,852,590 0 0 Pico Booster PS Pump Replacement 0 0 0 1,500,000 0
Calle Real Pump Station Rehabilitation 4,372 5,090,060 5,090,060 0 0 Costero Risco PRS Rehabilitation 20,831 668,160 668,160 0 0 AC Pipe Replacement Northwest 308 Zone 82,095 4,524,300 4,524,300 0 0 Pico/Presidio DIP Replacement (Albertsons) 847,086 1,570,320 1,570,320 0 0 Reservoir No. 5A Replacement 29,219 3,770,780 0 0 0
Cathodic Protection System Improvements 31,124 200,040 200,040 0 0 Well Water Quality System Improvement 27,022 806,430 806,430 0 0 El Levante Pump Station Rehab. 10,266 339,730 339,730 0 0 Calle Vallarta PRS 0 350,000 350,000 0 0
City-wide Copper Service Replacements 0 500,000 500,000 0 0 Acapulco Pump Station Rehabilitation 0 0 0 0 300,000
Total Capital Improvements $1,052,385 $20,811,900 $17,041,120 $1,500,000 $3,500,000 Water Depreciation Reserve
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $2,907,366 $3,002,060 $3,002,060 $270,889 $277,329 Additions:

Water Acreage Fees 12,349 6,700 6,700 6,700 6,700
Investment Earnings 145,340 60,969 60,969 16,190 17,347 SMWD Recycled Water System 0 1,100,000 1,100,000 0 0
Other Reimbursements 66,250 1,500,000 1,500,000 0 0
Transfer from Water Depreciation 0 1,200,000 1,200,000 0 0 Total Additions 223,939 3,867,669 3,867,669 22,890 24,047 Deductions:

Contractual Services 0 0 0 0 0
Capital Improvements* 117,042 6,586,640 6,586,640 0 0
Interdepartmental Charges 12,200 12,200 12,200 16,450 16,450 Total Deductions 129,242 6,598,840 6,598,840 16,450 16,450 Ending Balance $3,002,063 $270,889 $270,889 $277,329 $284,926 *Detail of Capital Improvements:

Reeves Pump Station 40,821 3,204,160 3,204,160 0 0
Recycled Water Expansion Phase II 76,221 1,871,010 1,871,010 0 0 Doheny Ocean Desalination 0 1,511,470 1,511,470 0 0
Total Capital Improvements $117,042 $6,586,640 $6,586,640 $0 $0 Budget Overview: No capital projects are scheduled for FY 2026-27 and FY 2027-28.

Net Working Capital Balance: The ending net working capital will be $284,926 at the end of FY 2027-28.

Water Acreage Fee Reserve
052-467
Description: The Water Acreage Fee Reserve Fund is used to plan, design, inspect and construct telemetry systems, distribution lines, service lines, water takeouts, filtration plants, well fields, impounding reservoirs and chlorination systems.

Funding Source: The Water Acreage Fee Reserve Fund is supported by fees which are assessed for all parcels of land that are developed and are connected to the water system.

Legal Basis: This program was established by City Ordinance No. 874. Rescources in this program are restricted. 183
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I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $3,659,999 $3,419,350 $3,419,350 -$81,817 $94,632 Additions:

Other Agency Depreciation Funded 696,000 696,000 696,000 696,000 696,000 Investment Earnings 182,965 69,443 69,443 -4,891 5,919
Total Additions 878,965 765,443 765,443 691,109 701,919 Deductions:

Contractual Services 1,108,128 4,255,120 4,255,120 500,000 500,000 Interdepartmental Charges 11,490 11,490 11,490 14,660 14,660 Total Deductions 1,119,618 4,266,610 4,266,610 514,660 514,660 Ending Balance $3,419,346 -$81,817 -$81,817 $94,632 $281,891 Budget Overview: No capital projects are scheduled for FY 2026-27 and FY 2027-28.

Net Working Capital Balance: The ending net working capital will be $0.3 million at the end of FY 2027-28.

Water Other Agency Depreciation Reserves
052-468
Description: The Water Other Agency Depreciation Reserves is set up to account for funds set aside for major repairs to the water system infrastructure that is owned, operated, and maintained by Joint Regional Water Supply System (JRWSS) which is a Joint Powers Authority. Depreciation is considered a normal operating expense, and funds are received from the general operating account. This process assures that funds will be available to replace equipment and rebuild water system infrastructure when equipment or infrastructure is no longer serviceable.

Funding Source: Depreciation on capital assets is the major source of funding for this program.

Legal Basis: Resources in this program are assigned.
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $12,219,034 $11,397,850 $11,397,850 $134,135 $199,773 Additions:

Depreciation Funded 3,393,556 3,150,000 3,150,000 3,150,000 3,150,000 Investment Earnings 563,221 165,155 165,155 20,618 36,748 Transfer from Sewer Operating Fund 0 200,000 200,000 0 0 Total Additions 3,956,777 3,515,155 3,515,155 3,170,618 3,186,748 Deductions:

Contractual Services 1,316,967 5,632,200 4,218,420 400,000 350,000 Capital Improvements* 926,280 9,596,210 8,985,390 2,550,000 950,000 Interdepartmental Charges 90,060 100,060 100,060 79,980 79,980 Transfer to General Fund 25,000 25,000 25,000 25,000 25,000 Transfer to Street Improvement 100,000 100,000 100,000 50,000 50,000 Transfer to Sewer Connection 2,319,650 2,319,650 1,350,000 0 0 Transfer to Sewer Operating 0 0 0 0 0
Total Deductions 4,777,957 17,773,120 14,778,870 3,104,980 1,454,980 Ending Balance $11,397,854 -$2,860,115 $134,135 $199,773 $1,931,541 Net Working Capital Balance: The net working capital will be $1.9 million at the end of FY 2027-28.

Sewer Depreciation Reserve
054-476
Description: The Sewer Depreciation Reserve Fund is an account for funds to be set aside for the replacement of equipment that has reached the end of its useful life and for major repairs to the sewer system infrastructure. Depreciation is considered a normal operating expense, and funds are received from the general operating account. Depreciation charges are computed by dividing the initial cost of the item by the projected useful life of the item. A Sewer Asset Model determines contributions for major repairs to the system infrastructure. These processes assure that funds will be available to purchase replacement equipment and rebuild sewer system infrastructure when equipment or infrastructure is no longer serviceable.

Funding Source: Depreciation on capital assets and interest income are the major sources of funding for this program.

Legal Basis: This fund was established by City Ordinance No. 874. Resources in this program are assigned.

Budget Overview: Contractual Services projects total $0.4 million for FY 2026-27 for maintenance activities. Capital Projects total $3.5 million for FY 2026-27 and FY 2027-28 including $1.2 million for the Water Reclamation Plant Boiler replacement and amounts for a Generator replacement, electrical system replacements and sewer trunk lining. 185
195
Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Improvements: FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Sewer System SCADA Implementation 183,759 181,070 181,070 0 0 Machinery and Equipment 0 60,000 60,000 0 0
WRP Electrical Systems Replacement 17,200 910,820 500,000 0 0 Linda Lane Lift Station Stabilization 2,951 0 0 0 0
Los Molinos Lift Station Generator Replacement 0 190,000 190,000 0 800,000 WRP Gas Flare Rehabilitation 5,640 68,290 68,290 0 0
WRP Boiler Replacement 24,636 1,838,420 1,838,420 1,200,000 0 Aeration Blower Improvements 28,909 840,670 840,670 0 0 Marquita Slope Reconstruction (Linda Lane PS) 30,189 3,254,770 3,254,770 0 0 WRP Ferric Tank Replacement 0 0 0 0 0
Digester #2 Structural & Mechanical Rehab 19,376 971,090 971,090 0 0 Wastewater Collection System Access Improv 0 200,000 0 0 0 Cypress Shores Emergency Pump Station 97,500 242,250 242,250 0 0 Headworks Grit Cyclone Replacement 76,207 838,830 838,830 550,000 0 Splitter Box Rehabilitation 439,913 0 0 0 0
Beach Trunk Lining North of Mariposa 0 0 0 700,000 0
Los Molinos Wet Well Lining 0 0 0 0 150,000
Vactor Discharge Station 0 0 0 100,000 0
Total Capital Improvements $926,280 $9,596,210 $8,985,390 $2,550,000 $950,000 Sewer Depreciation Reserve
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Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $1,130,266 $1,293,100 $1,293,100 $97,727 $5,049 Additions:

Federal Grant 0 700,000 700,000 0 0
Investment Earnings 52,098 18,737 18,737 25,022 12,928
Transfer from Sewer Depreciation 2,319,650 2,319,650 1,350,000 0 0 Total Additions 2,371,748 3,038,387 2,068,737 25,022 12,928 Deductions:

Contractual Services 52,860 296,830 296,830 100,000 0
Capital Improvements* 2,119,048 2,930,270 2,930,270 0 0 Interdepartmental Charges 37,010 37,010 37,010 17,700 17,700 Total Deductions 2,208,918 3,264,110 3,264,110 117,700 17,700 Ending Balance $1,293,096 $1,067,377 $97,727 $5,049 $277 *Detail of Capital Improvements:

Cyprus Shores PS Relocation 2,002,748 2,046,570 2,046,570 0 0 Recycled Water Quality Improvements 116,300 883,700 883,700 0 0 Total Capital Improvements $2,119,048 $2,930,270 $2,930,270 $0 $0 Net Working Capital Balance: The net working capital will be $277 at the end of FY 2027-28.

Sewer Connection Fee Reserve
054-477
Description: The Sewer Connection Fee Reserve account is used to construct new facilities required to collect, transport and treat the additional sewage generated by new development activity.

Funding Source: This program is funded by charging fees to developers and builders for connecting new facilities to the sewage system. The fee schedule is adjusted on a calendar year basis to allow for projected inflationary trends in new construction of capital projects.

Legal Basis: This program was established by City Ordinance No. 874. Resources in this program are restricted.

Budget Overview: No Capital projects are included and the only activity is for a material storage area. 187
197
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $1,408,021 $1,630,220 $1,630,220 $1,268,172 $1,560,797 Additions:

Other Agency Depreciation Funded 168,000 168,000 168,000 168,000 168,000 Investment Earnings 64,901 23,622 23,622 184,935 275,106 Total Additions 232,901 191,622 191,622 352,935 443,106 Deductions:

Contractual Services 0 542,970 542,970 50,000 0
Interdepartmental Charges 10,700 10,700 10,700 10,310 10,310 Interfund Transfers 0 0 0 0 0
Total Deductions 10,700 553,670 553,670 60,310 10,310
Ending Balance $1,630,222 $1,268,172 $1,268,172 $1,560,797 $1,993,593 Net Working Capital Balance: The ending net working capital will be $2.0 million at the end of FY 2027-28.

Sewer Other Agency Depreciation Reserves
054-478
Description: The Sewer Other Agency Depreciation Reserve Fund is used to account for funds to be set aside for major repairs to the sewer system infrastructure that is owned, operated and maintained by South Orange County Wastewater Authority (SOCWA). Depreciation is considered a normal operating expense, and funds are received from the general operating account. This process assures that funds will be available to rebuild sewer system infrastructure when infrastructure is no longer serviceable.

Funding Source: Depreciation on capital assets and interest income are the major sources of funding for this program.

Legal Basis: Resources in this program are assigned.

Budget Overview: There are no capital projects budgeted for FY 2026-27 and FY 2027-28. 188
198
Net Working Capital Balance: Ending net working capital is budgeted at $14,970 at the end of 2027-28.

Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $2,323,286 -$1,139,670 -$1,139,670 -$500,450 -$522,240 Additions:

Depreciation Funded 975,373 890,000 890,000 890,000 890,000 Investment Earnings 7,996 3,090 3,090 0 0
Federal Grant 0 0 0 0 959,000
Other State Grant 0 1,600,000 1,600,000 0 750,000
Other County Grants 0 0 0 445,590 2,750,000
Miscellaneous Reimbursement 0 0 1,000,000 0 0
Transfer from General Fund 0 0 0 0 150,000
Transfer from Other Funds 400,000 0 0 258,410 0
Total Additions 1,383,369 2,493,090 3,493,090 1,594,000 5,499,000 Deductions:

Contractual Services 773,065 417,570 200,000 150,000 150,000 Capital Improvements* 3,426,136 2,156,750 2,156,750 1,404,000 4,750,000 Interdepartmental Charges 47,120 47,120 47,120 61,790 61,790 Transfer to Storm Drain Operating 500,000 450,000 450,000 0 0 Transfer to Other Funds 100,000 0 0 0 0
Total Deductions 4,846,321 3,071,440 2,853,870 1,615,790 4,961,790 Ending Balance -$1,139,666 -$1,718,020 -$500,450 -$522,240 $14,970 Storm Drain Depreciation Reserve
059-553
Description: The Storm Drain Depreciation Reserve was set up in FY 2002 to account for funds set aside for replacement of Storm Drain Fund equipment that has reached the end of its useful life and for major repairs to the Storm Drain Utility System infrastructure. Depreciation is considered a normal operating expense, and funds are received from the general operating account. Depreciation charges are computed by dividing the initial cost of the item by the projected useful life of the item and then budgeting the required amount. This process assures that funds will be available to purchase replacement equipment and rebuild Storm Drain Utility System infrastructure when equipment or infrastructure is no longer serviceable.

Funding Source: Depreciation on capital assets is a major source of funding for this program. Transfers from the Clean Ocean Operating Fund and the Storm Drain Operating Fund are made to support capital projects relating to water quality improvements.

Budget Overview: Capital Projects include Calle Doncella Outlet improvements ($600,000) and MO2 Culvert at Pico and ECR.

Also, included is Poche Beach Water Reclamation project for $5.1 million whose funding is being provided by various grants, however these reimbusement grants will require the Storm Drain Fund fund to provide upfront funding. Contractual Services includes Storm Drain Rehabilitation projects ($150,000 annually).

Legal Basis: Resources in this program are assigned.
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199
I
Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Improvements: FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 E. Avenida Cordoba Drainage Study 293 5,900 5,900 0 0
Cyprus Shores SD Emergency Relocation 1,406,132 117,990 117,990 0 0 MO1 Emergency Rehabilitation 2,019,711 32,860 32,860 0 0 E. Avenida Cordoba Drainage Rehabiliation 0 2,000,000 2,000,000 0 0 MO2 Culvert @ Pico and ECR 0 0 0 454,000 0
Poche Beach Water Reclamation project 0 0 0 350,000 4,750,000 Calle Doncella Outlet Improvements 0 0 0 600,000 0
Total Capital Improvements $3,426,136 $2,156,750 $2,156,750 $1,404,000 $4,750,000 Storm Drain Depreciation Reserve
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I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $3,588,124 $3,790,410 $3,790,410 $3,928,340 $3,964,528 Additions:

Depreciation Funded 173,697 212,700 212,700 170,000 170,000 Transfer from Golf Operating 39,004 35,000 35,000 39,000 39,000 Investment Earnings 166,163 63,150 63,150 70,668 69,212 Proceeds on internal loan 2,000 0 0 0 0
Total Additions 380,864 310,850 310,850 279,668 278,212 Deductions:

Capital Improvements* 167,860 162,200 162,200 235,000 35,000 Interfund Charges 10,720 10,720 10,720 8,480 8,480
Total Deductions 178,580 172,920 172,920 243,480 43,480 Ending Balance $3,790,408 $3,928,340 $3,928,340 $3,964,528 $4,199,260 *Detail of Capital Improvements:

Improvements other than Buildings 103,687 35,000 35,000 0 0 Tenant Improvements 44,857 10,000 10,000 35,000 35,000
Machinery & Equipment 19,316 117,200 117,200 200,000 0
Total Capital Improvements $167,860 $162,200 $162,200 $235,000 $35,000 Net Working Capital Balance: The net working capital balance will be $4.2 million at the end of FY 2027-28.

Golf Depreciation Reserve
056-666
Description: The Golf Depreciation Reserve provides for the replacement of equipment, machinery, and buildings that have reached the end of their useful lives. Depreciation is considered a normal operating expense, and funds are received from the general operating accounts. Depreciation charges are computed by dividing the initial cost of the item by its projected useful life. This account assures that funds will be available to purchase replacement equipment and to replace building infrastructure when they are no longer serviceable.

Funding Source: Depreciation on capital assets is the major source of funding for this program which is transferred from the Golf Operating Fund at the end of the fiscal year.

Legal Basis: Resources in this program are assigned.

Budget Overview: Capital Improvement Projects planned include $35,000 for tenant improvements and $200,000 for golf equipment.
191
201
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $1,511,324 $1,600,270 $1,600,270 $856,272 $1,746,206 Additions:

Depreciation Funded 36,145 130,000 130,000 30,000 30,000 Transfer from Golf Operating 0 0 0 1,750,000 1,750,000
Investment Earnings 69,988 26,661 26,662 15,404 30,485
Repayment of internal loan 83 0 0 0 0
Total Additions 106,216 156,661 156,662 1,795,404 1,810,485 Deductions:

Capital Improvements* 11,801 895,190 895,190 700,000 3,000,000 Interdepartmental Charges 5,470 5,470 5,470 5,470 5,470 Transfer to other funds 0 0 0 200,000 0
Total Deductions 17,271 900,660 900,660 905,470 3,005,470 Ending Balance $1,600,269 $856,271 $856,272 $1,746,206 $551,221 *Detail of Capital Improvements:

Irrigation System Replacement 0 0 0 250,000 1,500,000
Golf Maint. Yard Asphalt Replacement 0 0 0 50,000 0
Driving Range Fence Extension 5,581 291,410 291,410 200,000 0 Golf Course Pump Station Upgrade 6,220 103,780 103,780 0 0 Muni Golf Course Bunker Renovations 0 500,000 500,000 200,000 1,500,000 Total Capital Improvements $11,801 $895,190 $895,190 $700,000 $3,000,000 Net Working Capital Balance: The net working capital balance will be $551,221 at the end of FY 2027-28.

Golf Capital Improvement Reserve
056-667
Description: The Golf Capital Improvement Reserve provides for the replacement of golf course improvements, such as irrigation systems, tee box, green renovations, and other improvements on the golf course. Equipment, machinery, and buildings are covered under the Golf Depreciation Reserve and are not a part of this reserve.

Funding Source: Depreciation on capital improvements is the major source of funding for this program which is transferred from the Golf Operating fund at the end of the fiscal year.

Legal Basis: This program was created by City Resolution No. 30-85 and 02-86. Resources in this program are assigned.

Budget Overview: Muni Golf Course Bunker Renovations are budgeted in total for both fiscal years for $1.7 million and irrigation system for $1.75 million with funding transferred from the Golf Operating Fund. 192
202
Internal Service Funds are established to finance and account for goods and services provided by one City department to other City departments on a cost reimbursement basis.

Internal Service Funds
Central
Services Fund
Information
Technology
Fund
Fleet Fund
Contract Fleet
Services
Fleet
Replacement
Reserve
Medical
Insurance Fund
Workers'
Compensation
Fund
General
Liability Self
Insurance Fund
193
203
'---~=====-~" '---======-~
r ..,
194
204
Expenditures Actual Amended Bud. Adjusted Budget Budget By Category FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 6,150 12,380 12,380 5,030 5,030
Supplies 48,531 55,650 55,650 65,650 65,650
Contractual Services 292,848 327,500 327,500 292,800 292,800 Other Charges 0 1,550 1,550 1,550 1,550
Interdepartmental Charges 50,970 51,360 51,360 50,810 51,230 Debt Service 8,427 34,520 34,520 34,520 34,520
Total $406,926 $482,960 $482,960 $450,360 $450,780
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $290,083 $341,990 $341,990 $302,460 $244,720 Additions:

Imaging Fees 56,688 53,840 53,840 0 0
Investment Earnings 22,456 9,900 9,900 9,900 9,900
Charges to Other Departments 379,690 379,690 379,690 382,720 382,720 Total Additions 458,834 443,430 443,430 392,620 392,620 Deductions:

Central Services 151,288 219,150 219,150 179,580 179,580 Communications 255,638 263,810 263,810 270,780 271,200
Total Deductions 406,926 482,960 482,960 450,360 450,780 Ending Balance $341,991 $302,460 $302,460 $244,720 $186,560 Budget Overview: Charges to other departments amount are $382,720 which reflect communication charges, postage, and duplication charges. Imaging fee revenues and costs have been budgeted in the General Fund starting in FY 2026-27 .

Net Working Capital Balance: The ending net working capital balance is $186,560 at the end of FY 2027-28.

Central Services Fund
062-242/812
Description: The Central Services Fund provides duplicating, postage, and communications services for all programs.

Funding Source: Other City programs within funds are charged on a cost reimbursement basis. The cost of an individual copy in duplicating services is based on the total costs accumulated during the prior year. Machine rental, toner, paper, and miscellaneous costs are divided by the number of copies made during the prior year. The charges to each program for postage are compiled daily based upon actual usage with additional amounts charged for the maintenance costs of the postage meter.

Communication charges are allocated to the using divisions based on the number of phone lines, cellular phones, and lease phone lines.

Legal Basis: Resources in this fund are assigned.
195
205
I
I I
Expenditures Actual Amended Bud. Adjusted Budget Budget By Category FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Personnel 832,637 1,171,610 1,171,610 1,205,060 1,284,810 Supplies 2,728 1,840 1,840 1,840 1,840
Contractual Services 1,055,602 1,326,090 1,326,090 1,278,100 1,295,500 Other Charges 2,445 15,900 15,900 15,900 15,900
Capital Outlay 119,996 1,035,540 1,035,540 89,000 91,000 Interdepartmental Charges 236,690 239,940 239,940 237,840 240,180 Debt Service 20,347 0 0 0 0
Total $2,270,445 $3,790,920 $3,790,920 $2,827,740 $2,929,230 Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $1,272,608 $1,565,860 $1,565,860 $304,990 $394,430 Additions:

Charges to Other Departments 2,490,050 2,490,050 2,490,050 2,887,180 2,887,180 Investment Earnings 73,647 40,000 40,000 30,000 25,000
Total Additions 2,563,697 2,530,050 2,530,050 2,917,180 2,912,180 Deductions:

Total Deductions 2,270,445 3,790,920 3,790,920 2,827,740 2,929,230 Ending Balance $1,565,860 $304,990 $304,990 $394,430 $377,380 Net Working Capital Balance: Net working capital is budgeted to be $377,380 at the end of FY 2027-28.

Information Technology
063-241
Description: The Information Technology (IT) Fund is used to account for the costs associated with the City's centralized computer systems and to distribute these costs to the departments using the system. Included are costs for hardware, software, network services, communications, computer training and support, and related staffing.

Funding Source: Other City programs within funds are charged on a cost reimbursement basis. The cost is determined based on the number of computer units within a department.

Legal Basis: Resources in this fund are assigned.

Budget Overview: Expenses in this fund include the costs to design, install, maintain and support the City's enterprise computer network, including servers, computers, and related networking equipment. Staff supports the network, hardware and software, provide training and support to other City staff, and maintain the City website. In FY 2025-26, the City budgeted for a new Financial Software system to replace the existing system that is near its end of life and support period. The implementation is starting in FY 2025-26 and implementation will occur through 2027 and 2028. 196
206
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $119,487 $351,360 $351,360 $425,580 $402,008 Additions:

Charges to Other Departments 1,492,730 1,569,840 1,569,840 1,554,550 1,554,550 Investment Earnings 5,641 4,840 4,840 12,048 8,670
Miscellaneous Income -1,470 200 200 200 200
Total Additions 1,496,901 1,574,880 1,574,880 1,566,798 1,563,420 Deductions:

Supplies 473,512 622,950 622,950 630,450 630,450
Contractual Services 722,306 802,980 802,980 867,110 907,170 Interdepartmental Charges 69,210 74,730 74,730 92,810 94,190 Total Deductions 1,265,028 1,500,660 1,500,660 1,590,370 1,631,810 Ending Balance $351,360 $425,580 $425,580 $402,008 $333,618 Net Working Capital Balance: Net working capital is budgeted to be a $333,618 at the end of FY 2027-28.

Fleet Services Fund
065-619
Description: First Vehicle Services (FVS) is responsible for the preventative maintenance and repair fo the City's vehicles and equipment. First Vehicle Services is a contracted service provider operating from the City's maintenance facility. First Vehicle Services guarantees vehicle availability, timeliness of performance and emergency road response.

Funding Source: Actual operations and maintenance costs from the prior year are charged to each vehicle through interdepartmental charges.

Legal Basis: Resources in this fund are assigned.

Budget Overview: Fuel and contractual services costs have increased from the prior year. Contractual costs are primarily for the vehicle service contract and a study to address California Air Resources Board requirements. There are no capital projects scheduled for FY 2026-27 or FY 2027-28.
197
207
I I
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $7,761,498 $6,908,240 $6,908,240 $4,873,140 $5,161,802 Additions:

Replacement Charges to Depts. 647,690 936,870 936,870 991,040 991,040 Investment Earnings 366,430 95,160 95,160 137,952 111,330 Gain/Loss on Disposal of Fixed Assets 92,560 0 0 0 0
Transfer from Other Funds 183,180 0 0 0 0
Total Additions 1,289,860 1,032,030 1,032,030 1,128,992 1,102,370 Deductions:

Capital - Automotive Equipment* 2,125,663 3,008,100 3,049,680 819,930 871,910 Interfund Charges 17,450 17,450 17,450 20,400 20,400
Total Deductions 2,143,113 3,025,550 3,067,130 840,330 892,310 Ending Balance $6,908,245 $4,914,720 $4,873,140 $5,161,802 $5,371,862 Net Working Capital Balance: Net working capital will be $5.4 million at the end of FY 2027-28.

Fleet Replacement Reserve Fund
065-824
Description: The Fleet Replacement Reserve includes funding set aside for the replacement of vehicles and other rolling stock as they become unserviceable, obsolete, or reach a predetermined service life. When new equipment is purchased, a replacement schedule is established so that funds will be available at the end of the useful life of the equipment. This provides for an orderly funding mechanism for purchasing replacement pieces of equipment.

Funding Source: Replacement costs, along with vehicle operating costs, are charged directly to each user program in all funds. The estimated replacement cost is established by factoring the original purchase price by an annual compounded inflation rate. The annual replacement charge is then calculated by dividing the replacement cost by the number of years before replacement is scheduled.

Legal Basis: Resources in this program are assigned.

Budget Overview: Capital Outlay in the amounts of $819,930 and $871,910 are budgeted in FY 2026-27 and FY 2027-28 respectively, for replacement of vehicles and equipment. 198
208
Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Outlay (Replacements): FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Automotive Equipment
Unit #1172 2014 Ford F450/Camera Equip 310,056 0 0 0 0
Unit #s 2010 & 2072 59,724 0 0 0 0
Unit #1090 2008 Ford F350 Utility 73,277 0 0 0 0
Unit #1103 2008 Chevrolet W4500 Utility Body 73,277 0 0 0 0 Unit #1130 2010 Ford F350 Utility 73,277 0 0 0 0
Unit #1133 2010 Ford F350 Utility 73,277 0 0 0 0
Unit #1146 2012 Ford F350 73,277 0 0 0 0
Unit #1155 2013 Ford F350 Utility 73,277 0 0 0 0
Unit #1156 2013 Ford F350 Utility 73,277 0 0 0 0
Unit #1121 2010 Ford F350 Super Duty 73,277 0 0 0 0
Unit #1136 2011 Ford F350 73,277 0 0 0 0
Unit #1173 2015 Ford F350 Utility 73,277 0 0 0 0
Unit #1174 2015 Ford F350 Utility 73,277 0 0 0 0
Unit #1175 2015 Ford F350 Utility 73,277 0 0 0 0
Unit #1071 2007 Ford F150 SuperCrew 47,530 0 0 0 0
Unit #1129 2010 Ford F150 47,953 0 0 0 0
Unit #1157 2013 Ford Focus 30,069 0 0 0 0
Unit #1134 2005 Kenworth Vactor 703,377 0 0 0 0
Unit #1252 Honda ATV 9,928 0 0 0 0
Unit #1253 Honda ATV 9,928 0 0 0 0
Unit #1075 2007 Ford Focus 27,780 0 0 0 0
HydroExcavator- Water Dept 0 721,620 721,620 0 0
Unit #1085 2008 Cat Skid Steer Tractor 0 66,190 66,190 0 0 Unit #1027 2004 Ford 3/4 ton Utility Body 0 45,340 45,340 0 0 Unit #1070 2008 Ford F250 0 45,640 45,640 0 0
Unit #1101 2008 Ford F450 w/ Dump Body 0 57,770 57,770 0 0 Unit #1105 Prowler Sewer 0 25,830 25,830 0 0
Unit #1106 2008 Great Northern Trailer 0 4,550 4,550 0 0 Unit #1102 2008 Ford F250 Utility 0 35,440 35,440 0 0
Unit #976 2000 GMC Sonoma 0 30,030 30,030 0 0
Unit #1041 2005 Ford F350 0 56,320 56,320 0 0
Unit #1086 2008 Ford F150 XLT SuperCrew 0 30,520 30,520 0 0 Unit #1005 Hyster Forklift 0 27,500 27,500 0 0
Unit #1142 2011 Crane Truck 0 125,700 125,700 0 0
Unit #1032 Air Compressor 0 1,160 1,160 0 0
Unit #1115 Wacker Light Tower 0 47,100 47,100 0 0
Unit #1076 2007 Ford E350 Cutaway Van 0 62,700 62,700 0 0 Unit #1178 2015 Hydrotec Pressure Washer 0 18,640 18,640 0 0 Unit #1168 2014 Ford Focus 0 25,000 25,000 0 0
Unit #1188 2017 Ford Escape 0 26,220 26,220 0 0
Unit #1189 2017 Ford Escape 0 26,220 26,220 0 0
Unit #1190 2017 Ford Escape 0 26,220 26,220 0 0
Unit #1077 2008 Cat 928Gz Loader 0 250,000 261,040 0 0
Unit #1078 2008 Ford F550 0 51,800 51,800 0 0
Unit #1097 2008 Cat CB-224E Roller 0 55,200 55,200 0 0
Unit #1112 2009 Truck mounted compressor 0 16,660 16,660 0 0 Unit #1122 2009 New Holland B95B Backhoe 0 115,500 115,500 0 0 Unit #1147 2012 Kenworth Asphalt Patch Truck 0 165,000 173,250 0 0 Unit #1179 Crafco Crack Sealer 0 48,040 48,040 0 0
Unit #1151 Ford F550 with Alted AT40M Boom 0 180,000 184,500 0 0 Unit # 1215 2018 Yamaha Personal Watercraft 0 15,600 15,600 0 0 Unit #1176 2015 Ford F350 Utility 0 64,350 64,350 0 0
Unit # 1197 2017 Ford Escape 0 27,380 27,380 0 0
Fleet Replacement Reserve
199
209
Actual Amended Bud. Adjusted Budget Budget
*Detail of Capital Outlay (Replacements): FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Fleet Replacement Reserve
Unit # 1198 2017 Ford Escape 0 28,230 28,230 0 0
Unit # 1200 2017 Ford Escape 0 27,320 27,320 0 0
Unit #1203 2017 Ford F150 Super Cab 0 35,330 35,330 0 0 Unit #1181 Ford F550 Utility 0 180,300 188,510 0 0
Unit #1201 2017 Ford F150 Super Cab 0 35,340 35,340 0 0 Unit #1202 2017 Ford F150 Super Cab 0 35,340 35,340 0 0 Unit #1182 Ford F550 Utility 0 171,000 180,580 0 0
Unit #1167 2013 Ford Taurus 0 0 0 30,000 0
Unit #1219 2018 Ford Transit Connect Van 0 0 0 34,250 0 Unit #1208 2018 Chevrolet Colorado 4X2 0 0 0 30,840 0
Unit #1209 2018 Chevrolet Colorado 4X2 0 0 0 30,840 0
Unit #1206 2018 Ford F150 4X2 0 0 0 35,000 0
Unit #1207 2018 Ford F150 4X2 0 0 0 35,000 0
Unit #1242 2020 John Deere 333G 0 0 0 104,050 0
Unit #1260 2020 Jeep Wrangler 0 0 0 52,780 0
Unit #1261 2023 Honda ATV 0 0 0 10,020 0
Unit #1264 2023 Jeep Wrangler 0 0 0 52,780 0
Unit #1225 2019 Ford F350 Utility 0 0 0 75,000 0
Unit #1226 2019 Ford F350 Utility 0 0 0 75,000 0
Unit #1228 2019 Ford F350 Utility 0 0 0 75,000 0
Unit #1222 2019 Ford F350 Utility 0 0 0 75,000 0
Unit #1223 2019 Ford F350 Utility 0 0 0 75,000 0
Unit #1199 2017 Ford Escape 0 0 0 29,370 0
Unit #1216 2018 Chevrolet Colorado 0 0 0 0 30,270
Unit #1217 2018 Chevrolet Colorado 0 0 0 0 30,270
Unit #1210 2018 Chevrolet Colorado 0 0 0 0 30,840
Unit #1247 2021 Chevrolet Equinox 0 0 0 0 33,120
Unit #1214 2018 Ford Transit Connect Van 0 0 0 0 31,450 Unit #1230 2019 Ford F2502 Utility 0 0 0 0 75,000
Unit #1238 2019 Ford F250 Utility 0 0 0 0 50,100
Unit #1239 2019 Ford F250 Utility 0 0 0 0 50,100
Unit #1229 2019 Ford F250 Utility 0 0 0 0 75,000
Unit #1233 2019 Ford F150 0 0 0 0 31,990
Unit #1212 2018 Ford F250 Utility 0 0 0 0 75,000
Unit #1213 2018 Ford F250 Utility 0 0 0 0 75,000
Unit #1240 2019 Ford F250 Utility 0 0 0 0 50,100
Unit #1241 2020 Ford Explorer 0 0 0 0 38,940
Unit #1232 2019 Ford F150 0 0 0 0 31,990
Unit #1278 2023 Yamaha Personal Watercraft 0 0 0 0 19,120 Unit #1250 2021 Ford F250 Animal Truck 0 0 0 0 71,810
Unit #1251 2021 Ford F250 Animal Truck 0 0 0 0 71,810
Total Automotive Equipment 2,125,663 3,008,100 3,049,680 819,930 871,910 200
210
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $344,478 $384,710 $384,710 $306,100 $226,200 Additions:

Premiums Charged 3,731,721 3,998,440 3,998,440 4,198,440 4,298,440 COBRA Premiums 0 2,000 2,000 2,000 2,000
Retiree Premiums 165,475 178,000 178,000 178,000 178,000 Investment Earnings 12,051 2,000 2,000 3,000 2,000
Miscellaneous Income 19,352 13,000 13,000 13,000 13,000 Total Additions 3,928,599 4,193,440 4,193,440 4,394,440 4,493,440 Deductions:

Claims Paid 152,850 222,500 222,500 222,500 222,500
Premiums Paid 3,643,849 3,946,150 3,946,150 4,146,150 4,246,150 Claims Administration 28,463 38,000 38,000 38,000 38,000 Contractual Services 2,652 4,850 4,850 4,850 4,850
Interfund Charges 60,550 60,550 60,550 62,840 62,840
Total Deductions 3,888,364 4,272,050 4,272,050 4,474,340 4,574,340 Ending Balance $384,713 $306,100 $306,100 $226,200 $145,300 Net Working Capital Balance: Net working capital will be $145,300 at the end of FY 2027-28.

Medical Insurance Fund
066-814
Description: The Medical Insurance program is offered to all regular full-time employees and benefited part-time employees. The benefits covered include medical, vision and dental insurance. Health insurance is coordinated through the CalPERS health plans. The fund also includes retiree insurance and COBRA insurance.

Funding Source: Premiums are based on the specific medical insurance program which the employee has selected. The costs of the medical program are accounted for in this fund and charged back to the appropriate program. Other postemployment medical benefits are pre-funded through the California Employers Retiree Benefit Trust (CERBT) which is a Section 115 trust funded through charges allocated to programs.

Legal Basis: Resources in this fund are assigned.

Budget Overview: Expenses include premium payments for medical, dental and vision plans. The City budgets for premiums at complete staffing level. Costs are recovered through charges to other funds and employee paid premiums. 201
211
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $2,101,415 $2,149,340 $2,149,340 $1,980,630 $1,894,310 Additions:

Prem. Charged to Other Funds 560,169 485,000 485,000 530,000 530,000 Investment Earnings 112,863 45,100 45,100 45,100 45,100 Other Revenue 5,149 0 0 0 0
Total Additions 678,181 530,100 530,100 575,100 575,100 Deductions:

Supplies 0 15,790 15,790 11,100 11,100
Contractual Services 5,461 19,540 19,540 5,000 10,000
Other Charges 580,305 618,990 618,990 595,000 636,350
Interfund Charges 44,490 44,490 44,490 50,320 50,320
Total Deductions 630,256 698,810 698,810 661,420 707,770 Ending Balance $2,149,340 $1,980,630 $1,980,630 $1,894,310 $1,761,640 Net Working Capital Balance: The ending working capital for FY 2027-28 will be $1.8 million. This $1.8 million includes $900,000 or three times the Self-insurance retention of $300,000 based on the City's fiscal policy. The remaining balance provides amounts to cover claims prior to 1995 when the City was self-insured.

Workers' Compensation Fund
067-815
Description: The City is self-insured for Workers' Compensation; however, the City receives an excess insurance supplement from CSAC Excess Insurance Authority. The City continues to use manual rates to charge the various departments. Through the City's payroll system, premiums for this coverage are charged back to the various departments and operating funds are included in the employees' compensation package. Costs linked to running the program, such as providing a third-party claims administrator, are also shared using the same methodology.

Funding Source: The major source of funding for this program is the premiums charged to other funds.

Legal Basis: Resources in this fund are assigned.

Budget Overview: Revenues are related to salary charges and interest and are anticipated to stay the same for FY 2026-27 and FY 2027-28.
202
212
Actual Amended Bud. Adjusted Budget Budget
Description FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance $4,398,488 $4,322,150 $4,322,150 $3,084,420 $1,639,820 Additions:

Employer Premiums 2,695,200 2,695,200 2,695,200 2,784,030 2,940,000 Investment Earnings 191,188 105,500 105,500 100,700 100,700 Miscellaneous Revenues 25,714 0 0 0 0
Total Additions 2,912,102 2,800,700 2,800,700 2,884,730 3,040,700 Deductions:

Personnel 163,488 169,770 169,770 197,230 213,640
Supplies 1,697 1,800 1,800 1,130 2,000
Contractual Services 161,152 464,250 464,250 231,100 231,300 Other Charges 2,614,014 3,354,520 3,354,520 3,846,860 3,741,000 Interfund Charges 48,090 48,090 48,090 53,010 53,010
Total Deductions 2,988,441 4,038,430 4,038,430 4,329,330 4,240,950 Ending Balance $4,322,149 $3,084,420 $3,084,420 $1,639,820 $439,570 Net Working Capital Balance: Ending net working capital is $0.4 million at the end of FY 2027-28.

General Liability Self Insurance Fund
068-816
Description: In order to control the costs of subsidence claims and continue to purchase liability and property insurance, the City in FY 2004-2005 entered into a joint powers agreement through the California Joint Powers Insurance Authority, (CJPIA), with other agencies to purchase excess layers of protection. Under this program, the City is covered for expenses related to subsidence claims, as this coverage will be provided through CJPIA. The City will continue to control costs lower its risk through a combination of self-insurance and purchased insurance, while maintaining comprehensive coverage.

Funding Source: Premium charges, claims adjustments, legal services and other administration costs are necessary to maintain this program. Each of the operating funds of the City are charged an amount in relation to the frequency and severity of claims incurred. These amounts are received in the General Liability Self-Insurance Fund to pay for insurance coverage.

Legal Basis: This fund is governed by Resolution No. 67-78 and 18-80. Resources in this fund are assigned.

Budget Overview: Employer premiums charged to other funds are $2.9 million. Expenses include administative costs, claims and payments to CJPIA to provide coverage.
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Capital Improvement Plan Projects
Summary of Budgeted Projects - Graphs

CIP ACTIVITY BY FUND

CIP ACTIVITY BY CATEGORY
Capital Improvement
24%
Gas Tax
33%
General
6%
Golf Improvement
3%
Park Acq & Development
1%
Sewer Depreciation
12%
Storm Drain
Depreciation
6%
Street
Improvement
Water 8%
Depreciation
7%
FY 2026-27
Capital
Improvement
8%
Gas Tax
17%
General
6%
Golf
Improvement
15%
Sewer
Depreciation
5%
Storm Drain
Depreciation
24%
Street
Improvement
8%
Water
Depreciation
17%
FY 2027-28
Facilities
$1,720,000 8%
Parks and
Beaches
$2,795,000 13%
Streets and Medians
$10,800,000 50%
Utility $4,050,000 19%
Water Quality $2,109,000
10%
FY 2026-27
Facilities $300,000
1%
Parks and Beaches
$4,520,000 23%
Streets and Medians
$5,325,000 27%
Utility $4,450,000
22%
Water Quality
$5,500,000 27%
FY 2027-28
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Capital Improvement Program
Introduction
The Capital Improvement Program (CIP) section of the Annual Budget document is intended to provide the reader with a summary of the major capital projects for FY 2026-27 and FY 2027-28. The City’s Capital Improvement Program is divided into these major categories:
 Facilities
 Parks and Beaches
 Street and Medians
 Utilities (Water and Sewer)
 Water Quality (Drainage)
This Budget section provides a summary of the CIP process, master plans, budgeted projects and future projects anticipated in the City’s six-year project plans.

Individual project sheets outlining the project description, project location (including maps), projected cost, operation and maintenance costs and funding sources are included in this section and are organized based on the major categories listed previously.

Master Plans
The City utilizes “master plans” to guide the development and maintenance of existing infrastructure, as well as future capital improvements. The plans provide a foundation for the development of goals and priorities for capital improvement projects. The list of master plans includes:
 City General Plan
 Master Plan for City Facilities
 Park & Recreation Master Plan
 Regional Circulation Financing and Phasing Program (RCFPP)  Street Improvement Program
 Water Master Plan
 Drainage Master Plan
 Wastewater (Sewer) Master Plan
 Water and Sewer Asset Management Plan
 Recycled Water Master Plan
 Urban Runoff Management Plan
 Other Specific Plans (e.g. Pier Bowl Specific Plan)
These master plans demonstrate the City’s commitment to long-range capital improvement programming by focusing attention on the current and future needs of the community, while balancing the community’s needs with its available fiscal resources.

CIP Process
The long-term Capital Improvement Program includes projects with a value of $25,000 or more with a minimum useful life of 5 years at a fixed location. The Capital Improvement Program Committee, consisting of members from all City departments, annually prepares and updates a six-year capital improvement plan. Projects are reviewed by the CIP Committee to ensure that the City’s priorities are addressed and staffing levels and funds are adequate to complete the projects. A six-year capital plan is prepared, however, only the first and second year of projects are funded and approved with the additional 207
217
Capital Improvement Program
years presented for planning purposes only. Equipment is included directly in the budget as capital costs and not part of the total capital and maintenance projects presented in this section.

Street projects are primarily based on the Street Master Plan, the Street Improvement Program, and current pavement management studies. Utilities activities include Water and Sewer projects are based on their respective master plans or to meet regulatory requirements. Drainage activities are based on infrastructure conditions, available funding and water quality requirements to meet regulatory requirements. Other projects are based on the City Facilities Master Plan, staff risk assessments, or additional Council identified needs. Capital Improvement Program projects are addressed based on the following four categories:
 Replacement
Existing improvements that are deteriorated and need to be replaced and/or upgraded to continue to provide service and to meet current codes and regulations.  Expansion
New improvements that are growth-related and funded through development fees. These improvements are identified in master plans and/or agreements, and funding sources are in place.  Growth
New improvements based on projected development. These projects are “development dependent”, and the funding source is through future development fees and/or financing by developers.  Economic Vitality and Diversity
This includes construction of improvements for promotion of economic vitality and diversity and to eliminate and prevent the spread of blight and deterioration in the City.

Operating and maintenance costs are identified on the individual project and are or will be included in future operating budgets.

FY 2026-27 and FY 2027-28 Capital Improvement Plan
The total budget for the City’s Capital Improvement Plan in FY 2026-27 is $21.5 million and FY 2027-28 is $20.1 million, excluding CDBG infrastructure projects which will be brought forth with the grant obligation. The chart below summarizes the FY 2026-27 and FY 2027-28 CIP by project category and dollar amount (in millions):

Streets and Medians $ 10.80 $ 5.33
Parks and Beaches 2.80 4.52
Utilities 4.05 4.45
Water Quality 2.11 5.50
Facilities 1.72 0.30
Total Capital Improvement Plan $ 21.48 $ 20.10
Category FY 2026-27 FY 2027-28
These projects are listed on a Summary of Budget Projects both by Fund and by Category, with $36.3 million being capital, $5 million maintenance and $0.3 million studies for the two-year budget.

Additionally, individual project sheets are in each category section follow the Summary of Budgeted Projects section. Fund sources are listed in the Summary of Budgeted Projects and on the individual project sheet showing the funding source - General Fund, capital project, special revenue or enterprise funds along with related grants or contributions are listed on the individual project sheets. 208
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Capital Improvement Program
The City’s annual minimum Maintenance of Effort (MOE) of $1.7 million to ensure that new road funds do not supplant existing general revenue spending is funded through the General Fund with about half being met through the major street maintenance, pavement preservation, and sidewalk repairs projects and the other half funded through Public Works department operating costs.

Significant Capital Projects and Operating Impacts
An easy-reference map allows the reader to identify the location of major new projects. Significant projects include Sand Replenishment, Del Mar Phase I Undergrounding, Calafia Complete Streets, Golf Course Bunker renovations and Irrigation System Replacement, Water Reclamation Plant (WRP) Boiler Replacement, Poche Beach Water Reclamation, Pico Booster Pump Station pump replacement and Reata Pump station rehabilitation. Most of these projects are not anticipated to have a significant impact or change to operating costs due to the assets existing. The only new construction to impact annual operating costs would be the Poche Beach Water Reclamation project which is a joint project with the County and the Vista Hermosa Meadows development.

Carry Forward Projects
Carry Forward Projects are CIP projects approved in prior fiscal years which are brought forward into the new fiscal year budget. The project name, approved project budget, project costs to date and the FY 2025- 26 budget amounts anticipated are listed in the Carry Forward Projects schedule included in the Final Budget.
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AVE VISTA
This map has been provided to give a visual
display of city data from various sources.

To be sure of complete accuracy, please check
with City staff for the most up to date information.

The City of San Clemente assumes no liability
for errors associated with the use of this data. 0 10.5 Miles Sewer
Streets
Water
Beaches, Parks & Medians
Drainage
I
Facilities and Other Improvements

MAP OF SIGNIFICANT PROJECTS
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Budget Budget
Fund Category Project Type FY 2026-27 FY 2027-28
Capital Improvement Facilities Beach Club Repairs Maint 160,000 - Capital Improvement Facilities City Hall Emergency Operations Center CIP 150,000 - Capital Improvement Facilities Senior Center HVAC Replacements CIP 150,000 - Capital Improvement Parks and Beaches Bonito Canyon Park Tennis Courts CIP 260,000 - Capital Improvement Parks and Beaches Liberty Park Playground Equipment CIP - 300,000 Capital Improvement Parks and Beaches Lifeguard Tower Replacements CIP 120,000 120,000 Capital Improvement Parks and Beaches Pier Improvement and Repairs Maint 700,000 - Capital Improvement Parks and Beaches San Gorgonio Park Tennis Courts CIP 68,000 - Capital Improvement Parks and Beaches San Luis Rey Park Tennis Courts CIP 42,000 - Capital Improvement Parks and Beaches San Luis Rey Restroom Replacement CIP 200,000 - Capital Improvement Parks and Beaches Sand Replenishment CIP - 1,000,000 Capital Improvement Parks and Beaches Shoreline Monitoring Study 100,000 100,000 Capital Improvement Parks and Beaches T Street Overpass Assessment Study 100,000 - Capital Improvement Parks and Beaches Tierra Grande Park Playground Equipment CIP 325,000 - Capital Improvement Streets and Medians Del Mar Phase I Undergrounding District CIP 2,750,000 - Gas Tax Facilities North Beach Train Station improvements CIP 960,000 - Gas Tax Streets and Medians Arterial Street Improvement Program CIP 750,000 750,000 Gas Tax Streets and Medians As Needed Street Improvements Maint 700,000 700,000 Gas Tax Streets and Medians Avenida Victoria Sidewalk and Underpass CIP 450,000 Gas Tax Streets and Medians Bulb Out Extension-Calle Seville & Ola Vista CIP - 150,000 Gas Tax Streets and Medians Calafia Complete Streets CIP 900,000 - Gas Tax Streets and Medians East-side San Luis Rey Sidewalk Installation CIP - 100,000 Gas Tax Streets and Medians Electrification Charging Station CIP 75,000 - Gas Tax Streets and Medians In-pavement Lighting System Replacement CIP 300,000 - Gas Tax Streets and Medians Local Street Improvements CIP 750,000 750,000 Gas Tax Streets and Medians Max Berg Park ADA Ramp and Parking Maint 100,000 - Gas Tax Streets and Medians Pavement Improvements Palizada I-5 to ECR CIP 300,000 - Gas Tax Streets and Medians Pico Widening I- to Frontera CIP 600,000 - Gas Tax Streets and Medians Signalized Intersection Maintenance Maint 50,000 50,000 Gas Tax Streets and Medians Street Light LED Conversion CIP 250,000 - Gas Tax Streets and Medians Traffic Control and High Speed Feedback Maint 25,000 25,000 Gas Tax Streets and Medians Traffic Signal Camera Replacement CIP 150,000 150,000 Gas Tax Water Quality Trash Capture Devices CIP 705,000 750,000 General Facilities Major Facilities Maintenance Maint 300,000 300,000 General Streets and Medians Major Street Maintenance Maint 550,000 550,000 General Streets and Medians Pavement Preservation Program Maint 250,000 250,000 General Streets and Medians Sidewalk Repairs Maint 150,000 150,000 Golf Improvement Parks and Beaches Driving Range Fence Extension CIP 200,000 - Golf Improvement Parks and Beaches Golf Course Bunker Renovations CIP 200,000 1,500,000 Golf Improvement Parks and Beaches Golf Maintenance Yard Asphalt Replacement CIP 50,000 - Golf Improvement Parks and Beaches Golf Course Irrigation System Replacement CIP 250,000 1,500,000 Park Acq & Development Parks and Beaches Vista Hermosa Sports Park Meadows Dev. CIP 180,000 - Sewer Depreciation Utility Beach Trail Sewer Trunk Lining CIP 700,000 - Sewer Depreciation Utility Headworks Grit Cyclone Replacement CIP 550,000 - Sewer Depreciation Utility Los Molinos Lift Station Generator CIP - 800,000 Sewer Depreciation Utility Los Molinos Wet Well Lining CIP - 150,000 Sewer Depreciation Utility Vactor Discharge Station CIP 100,000 - Sewer Depreciation Utility WRP Boiler Replacement CIP 1,200,000 - Storm Drain Depreciation Water Quality Calle Doncella Outlet Improvements CIP 600,000 - Storm Drain Depreciation Water Quality MO2 Culvert @ Pico and ECR CIP 454,000 - Storm Drain Depreciation Water Quality Poche Beach Water Reclamation project CIP 350,000 4,750,000 Street Improvement Streets and Medians Alley/Parking Lot Rehabilitation Program CIP 200,000 200,000 Street Improvement Streets and Medians Street Rehabilitation Program CIP 1,500,000 1,500,000 Water Depreciation Utility Acapulco Pump Station Rehabilitation CIP - 300,000 Water Depreciation Utility Pico Booster PS Pump Replacement CIP 1,500,000 - Water Depreciation Utility Reata Pump Station Rehabilitation CIP - 3,200,000 Total Capital Improvement Plan* 21,474,000 20,095,000
* Excludes equipment
Capital Improvement Plan Projects
Summary of Budgeted Projects - By Fund
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Budget Budget
Fund Category Project Type FY 2026-27 FY 2027-28
Capital Improvement Facilities Beach Club Repairs Maint 160,000 - Capital Improvement Facilities City Hall Emergency Operations Center CIP 150,000 - Capital Improvement Facilities Senior Center HVAC Replacements CIP 150,000 - Gas Tax Facilities North Beach Train Station improvements CIP 960,000 - General Facilities Major Facilities Maintenance Maint 300,000 300,000 Capital Improvement Parks and Beaches Bonito Canyon Park Tennis Courts CIP 260,000 - Capital Improvement Parks and Beaches Liberty Park Playground Equipment CIP - 300,000 Capital Improvement Parks and Beaches Lifeguard Tower Replacements CIP 120,000 120,000 Capital Improvement Parks and Beaches Pier Improvement and Repairs Maint 700,000 - Capital Improvement Parks and Beaches San Gorgonio Park Tennis Courts CIP 68,000 - Capital Improvement Parks and Beaches San Luis Rey Park Tennis Courts CIP 42,000 - Capital Improvement Parks and Beaches San Luis Rey Restroom Replacement CIP 200,000 - Capital Improvement Parks and Beaches Sand Replenishment CIP - 1,000,000 Capital Improvement Parks and Beaches Shoreline Monitoring Study 100,000 100,000 Capital Improvement Parks and Beaches T Street Overpass Assessment Study 100,000 - Capital Improvement Parks and Beaches Tierra Grande Park Playground Equipment CIP 325,000 - Golf Improvement Parks and Beaches Driving Range Fence Extension CIP 200,000 - Golf Improvement Parks and Beaches Golf Course Bunker Renovations CIP 200,000 1,500,000 Golf Improvement Parks and Beaches Golf Maintenance Yard Asphalt Replacement CIP 50,000 - Golf Improvement Parks and Beaches Golf Course Irrigation System Replacement CIP 250,000 1,500,000 Park Acq & Development Parks and Beaches Vista Hermosa Sports Park Meadows Dev. CIP 180,000 - Capital Improvement Streets and Medians Del Mar Phase I Undergrounding District CIP 2,750,000 - Gas Tax Streets and Medians Arterial Street Improvement Program CIP 750,000 750,000 Gas Tax Streets and Medians As Needed Street Improvements Maint 700,000 700,000 Gas Tax Streets and Medians Avenida Victoria Sidewalk and Underpass CIP 450,000 Gas Tax Streets and Medians Bulb Out Extension-Calle Seville & Ola Vista CIP - 150,000 Gas Tax Streets and Medians Calafia Complete Streets CIP 900,000 - Gas Tax Streets and Medians East-side San Luis Rey Sidewalk Installation CIP - 100,000 Gas Tax Streets and Medians Electrification Charging Station CIP 75,000 - Gas Tax Streets and Medians In-pavement Lighting System Replacement CIP 300,000 - Gas Tax Streets and Medians Local Street Improvements CIP 750,000 750,000 Gas Tax Streets and Medians Max Berg Park ADA Ramp and Parking Maint 100,000 - Gas Tax Streets and Medians Pavement Improvements Palizada I-5 to ECR CIP 300,000 - Gas Tax Streets and Medians Pico Widening I- to Frontera CIP 600,000 - Gas Tax Streets and Medians Signalized Intersection Maintenance Maint 50,000 50,000 Gas Tax Streets and Medians Street Light LED Conversion CIP 250,000 - Gas Tax Streets and Medians Traffic Control and High Speed Feedback Maint 25,000 25,000 Gas Tax Streets and Medians Traffic Signal Camera Replacement CIP 150,000 150,000 General Streets and Medians Major Street Maintenance Maint 550,000 550,000 General Streets and Medians Pavement Preservation Program Maint 250,000 250,000 General Streets and Medians Sidewalk Repairs Maint 150,000 150,000 Street Improvement Streets and Medians Alley/Parking Lot Rehabilitation Program CIP 200,000 200,000 Street Improvement Streets and Medians Street Rehabilitation Program CIP 1,500,000 1,500,000 Sewer Depreciation Utility Beach Trail Sewer Trunk Lining CIP 700,000 - Sewer Depreciation Utility Headworks Grit Cyclone Replacement CIP 550,000 - Sewer Depreciation Utility Los Molinos Lift Station Generator CIP - 800,000 Sewer Depreciation Utility Los Molinos Wet Well Lining CIP - 150,000 Sewer Depreciation Utility Vactor Discharge Station CIP 100,000 - Sewer Depreciation Utility WRP Boiler Replacement CIP 1,200,000 - Water Depreciation Utility Acapulco Pump Station Rehabilitation CIP - 300,000 Water Depreciation Utility Pico Booster PS Pump Replacement CIP 1,500,000 - Water Depreciation Utility Reata Pump Station Rehabilitation CIP - 3,200,000 Gas Tax Water Quality Trash Capture Devices CIP 705,000 750,000 Storm Drain Depreciation Water Quality Calle Doncella Outlet Improvements CIP 600,000 - Storm Drain Depreciation Water Quality MO2 Culvert @ Pico and ECR CIP 454,000 - Storm Drain Depreciation Water Quality Poche Beach Water Reclamation project CIP 350,000 4,750,000 Total Capital Improvement Plan* 21,474,000 20,095,000
* Excludes equipment
Capital Improvement Plan Projects
Summary of Budgeted Projects - By Category
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Capital Improvement Program
Facilities
The City of San Clemente maintains facilities and other general infrastructure throughout the City. This includes buildings (such as City Hall, the Senior Center, Casa Romantica, fire stations, the police substation), along with other facilities and improvements. The City Facilities Master Plan system identifies improvements and items and is updated in connection with the General Plan and other Master Plans for the City.

San Clemente City CouncilJune 2, 2026

San Clemente City Council
June 2, 2026