Agenda — Temecula City Council, May 22, 2025 (part 1 of 3)

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AGENDA

TEMECULA CITY COUNCIL

BUDGET WORKSHOP

CONFERENCE CENTER
41000 MAIN STREET

TEMECULA, CALIFORNIA
MAY 22, 2025 - 9:00 AM
CALL TO ORDER: Mayor Brenden Kalfus
FLAG SALUTE: Mayor Brenden Kalfus
ROLL CALL: Alexander, Kalfus, Rahn, Schwank, Stewart

PUBLIC COMMENTS - NON -AGENDA ITEMS
A total of 30 minutes is provided for members of the public to address the City Council on matters not listed on the agenda. Each speaker is limited to 3 minutes. Public comments may be made in person at the meeting by submitting a speaker card to the City Clerk. Speaker cards will be called in the order received. Still images may be displayed on the projector. All other audio and visual use is prohibited.

Public comments may also be submitted by email for inclusion into the record. Email comments must be received prior to the time the item is called for public comments and submitted to [email protected]. All public participation is governed by Council Policy regarding Public Participation at Meetings adopted by Resolution No. 2021-54.

JOINT MEETING OF THE CITY COUNCIL, TEMECULA COMMUNITY SERVICES

DISTRICT AND SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

BUSINESS
Any member of the public may address the City Council on items that appear on the Business portion of the agenda. Each speaker is limited to 5 minutes. Public comments may be made in person at the meeting by submitting a speaker card to the City Clerk. Speaker cards will be called in the order received. Still images may be displayed on the projector. All other audio and visual use is prohibited.

1. Review Fiscal Years 2026-30 Capital Improvement Program and Fiscal Year 2025-26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District and the Successor Aizencv to the Redevelopment Aizencv
Recommendation: That the City Council/Board of Directors review and discuss the proposed

Page 1 ends

City Council Agenda May 22, 2025
Fiscal Years 2026-30 Capital Improvement Program (CIP) and Fiscal Year 2025-26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District (TCSD) and the Successor Agency to the Redevelopment Agency (SARDA).

Attachments: Agenda Report
Transmittal Message
FY2025-26 Proposed AOB
FY2026-30 Proposed CIP

ADJOURNMENT
The next regular meeting of the City Council will be held on Tuesday, May 27, 2025, at 5:00 p.m., for a Closed Session, with regular session commencing at 6:00 p.m., at the Council Chambers located at 41000 Main Street, Temecula, California.

NOTICE TO THE PUBLIC
The full agenda packet (including staff reports, public closed session information, and any supplemental material available after the original posting of the agenda), distributed to a majority of the City Council regarding any item on the agenda, will be available for public viewing in the main reception area of the Temecula Civic Center during normal business hours at least 72 hours prior to the meeting. The material will also be available on the City's website at TemeculaCa.gov. and available for review at the respective meeting. If you have questions regarding any item on the agenda, please contact the City Clerk's Department at (951) 694-6444.

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Item No. 1

CITY OF TEMECULA / TEMECULA COMMUNITY SERVICES DISTRICT /

SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY

AGENDA REPORT
TO:

FROM:

City Council/Board of Directors
Aaron Adams, City Manager/General Manager/Executive Director DATE: May 22, 2025
SUBJECT: Review Fiscal Years 2026-30 Capital Improvement Program and Fiscal Year 2025- 26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District, and the Successor Agency to the Redevelopment Agency PREPARED BY: Jennifer Hennessy, Director of Finance/Treasurer RECOMMENDATION: That the City Council/Board of Directors review and discuss the proposed Fiscal Years 2026-30 Capital Improvement Program and Fiscal Year 2025-26 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District and the Successor Agency to the Redevelopment Agency.

DISCUSSION: Each year, the City Council holds a budget workshop in which staff presents the Five -Year Capital Improvement Program Budget and the proposed Annual Operating Budget for the City, Temecula Community Services District (TCSD), and the Successor Agency to the Redevelopment Agency (SARDA). Any changes to the proposed budgets, as requested at the budget workshop, will be incorporated into the adopted budget and presented to Council at its May 27, 2025 meeting.

The attached Transmittal Letter summarizes the highlights of the Fiscal Year 2025-26 proposed Annual Operating Budget and Fiscal Years 2026-30 Capital Improvement Program documents.

FISCAL IMPACT: The specific fiscal impacts by Fund are noted in the attached Transmittal Letter.

ATTACHMENTS: 1. Transmittal Message

2. Proposed Fiscal Years 2026-30 Capital Improvement Program

3. Proposed Fiscal Year 2025-26 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
May 22, 2025
Honorable Mayor and Members of the City Council:

I am pleased to submit the Proposed Annual Operating Budget for the Fiscal Year 2025-26. This budget document was developed to serve as the financial plan for the City's programs and policies. It reflects the resources necessary to meet the goals, programs, and service priorities that the City Council is committed to providing its citizens.

The Fiscal Year 2025-26 Proposed Annual Operating Budget has been developed after a considerable review process. Departmental budget submittals were prepared and reviewed by line item in connection with projected revenues. Detailed performance objectives and accountability measures were developed consistent with the City's Quality of Life Master Plan. Five-year revenue and expenditure projections were developed to identify the future impacts of proposed staffing and program changes, as well as the impact of proposed capital improvement projects.

The resulting budget is realistic and balanced and continues to provide quality services to the community while effectively utilizing available resources.

As you will read below, the City's General Fund is not only balanced for the ensuing fiscal year, but also projected to be balanced for the next five fiscal years. Additionally, the City's reserve funds are fully funded across all five years of the long-range financial forecast.

CITY OF TEMECULA PROFILE
The City of Temecula is a dynamic community comprised of approximately 112,220 citizens. The City maintains 42 parks on 337 developed acres throughout the community, which provide recreation opportunities for both the citizens of Temecula, as well as surrounding communities. Law Enforcement and Fire Protection services are provided through contracts with the County of Riverside.

Known as Southern California's Wine Country, the City of Temecula is a nationally and internationally known tourist destination welcoming over 3 million visitors a year. Temecula is also an innovative, dynamic economic powerhouse and job center for the region, all the while retaining its small-town charm and character that residents cherish.

Offering the finest quality of life, Temecula is listed among the safest cities in the State and Nation per FBI statistics.

With a diverse population, citizens enjoy picturesque
neighborhoods, a vast array of beautifully manicured parks and trails, multi -cultural dining options, retail stores that include the region's premier shopping destination Promenade Temecula, the highest rated School District in Riverside County for its outstanding academic scores, higher education opportunities including Mount San Jacinto College's Temecula Campus and Cal State San Marcos at Temecula.

Annual Operating Budget 1 9

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
As a visitor destination, Temecula also offers a vibrant Old Town with boutique shops, outdoor markets, and a distinct foodie district, Pechanga Resort Casino, Southern California's Wine Country speckled each morning with hot air balloons hovering over grapevines and equestrian trails, - championship golf courses, Vail Ranch Historic Headquarters _ - -- --:
comprised of turn -of -the -century old west structures restored into 4 specialty restaurants and retail, and City of Temecula signature _ ------ events, parades, museums and a theater. Temecula's scenic landscape of rolling hills, vineyards and wineries are swept clean r each afternoon with fresh ocean breezes that funnel through the Santa Margarita gap of the coastal mountains providing an ambience that magnifies the beauty of the City and Temecula Valley. =£

ECONOMIC INDICATORS
The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections.
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19 (D ift ;;d..

Population Median Age Households
Average Median # of Jobs Unemployment
112,220 37.5 years 36,914
Income Home Price 54,400 Rate 4.6%
$145,129 $771,000 (Mar'25) (Mar'25)
(Apr'25)
• Estimated Population:
up 1.2% from 2024 (source: State Department of Finance) • Median Age:
down from 37.7 in 2024 (source: Pop -Facts Report, 2-13-25) • Number of Households:
down 0.7% from 2024 (source: Pop -Facts Report, 2-13-25) • Average Household Income:
up 2.3% from 2024 (source: Pop -Facts Report, 2-13-25)137195 • April Median Home Price:
up 6.2% from 2024 (Source: Southwest Riverside County
Association of Realtors)
• Number of Jobs:
up 0.2% from April 2024 (source: FDD)
• March Unemployment Rate:
up from 4.1% in April 2024 (Riverside County: 5.1%,
CA: 5.3%, Nation: 4.2% (source: FDD & BLS)
Temecula has experienced slight increases in the majority of the above economic indicators. Population has increased 1.2% after two consecutive years of declines. Housing prices continue to climb due to the low inventory, with a 6.2% increase in the median home price. Temecula's average household income has increased by 2.3%, while the number of jobs has remained relatively flat over the prior year. Unemployment has increased slightly, but remains lower than both Riverside County and the State. 10 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE

LOCAL ECONOMY AND LEGISLATIVE IMPACTS
Local Economy
As the economic indicators noted above have improved over 2024, the impact to the local economy is evident in the retail activity and sales tax trends. Despite a flattening of Sales Tax revenue in the current year, it is projected to grow at a modest 2.5% next fiscal year, as both national retailers and local entrepreneurs continue to invest in Temecula by opening businesses, undergoing expansion projects and starting new construction. Currently, there are seventeen new businesses slated to open soon, including a hotel, multiple retailers, restaurants and breweries.

In addition, several auto dealers are undergoing expansions within the Temecula Auto Mall. , ,
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With Temecula's regional shopping mall, Old Town district, and auto mall, shoppers from the entire Temecula Valley region contribute to the City's sales tax base. Temecula residents generated $37,209 in sales tax per capita in 2024, which far outpaced neighboring cities and statewide averages.

Per Capita Sales
Temecula $14,000
$12,000
Riverside County
$10,000
Southern California
$8,000
California
$6,000
$4,000
$2,000
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
21 22 22 22 22 23 23 23 23 24 24 24 24
Source: HdL Companies
Legislative Impacts
The City of Temecula actively follows state and federal legislative proposals each year and works closely with the League of California Cities and the National League of Cities to stay informed and engaged to ensure the City supports legislation that aligns with the City's local legislative platform guiding principles:

I. Preservation of Local Control - Support measures that preserve and protect the City's general law powers and duties to enact legislation and policy direction concerning local affairs. Oppose measures that preempt local authority.

Annual Operating Budget 1 11

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
II. Promotion of Fiscal Stability - Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City's revenue base. Oppose measures that mandate costs with no guarantee of local reimbursement or offsetting benefit. Oppose measures that shift local funds to the county, state, or federal government, without offsetting benefit.

III. Support Funding Opportunities - Support measures that allow the City to compete for its fair share of regional, state and federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, state and federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards.

Recent legislation that potentially impacts the City's operations include the following:

Senate Bill 937 Impact Fee Deferral - SB 937 was signed into law on September 19, 2024 and became effective January 1, 2025. This new law prohibits the local agencies from collecting the fees or charges from a Designated Residential Development Project for the construction of public improvements or facilities until the first occupancy certificate or first temporary certificate of occupancy is issued. The local agency may collect utility service fees at the time of application for service. It may charge the fees prior to the certificate of occupancy if construction does not begin within five years of the date the building permit is issued. The local agency may require the payment of these fees or charges at an earlier time if the conditions specified in the code are met.

Assembly Bill 1868 Property Taxation on Affordable Housing — AB 1868 was enacted in 2024 and became effective on January 1, 2025. The bill primarily deals with property taxation and affordable housing, specifically focusing on how county assessors value property for tax purposes when its subject to restrictions for affordable housing. It establishes a rebuttable presumption that the value of property subject to certain affordable housing contracts is no more than the sum of the first mortgage and down payment.

GOALS AND OBJECTIVES
The City Council recently adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The Temecula 2040 Plan is a living document that reflects C the vision and long-term goals of the City. As Temecula continues to grow and mature,,'rk the Temecula 2040 Plan will be a crucial part of not only maintaining the City's quality of life, but to take a proactive approach and identify specific community needs, goals, 0 Lo
and possible improvements. The City of Temecula utilizes the QLMP to formulate and � ��MP �,
budget Citywide projects. In addition, the QLMP is used to guide planning, investment -I&TE 4 decisions, to provide vision and continuity for the next phase of the City's journey, and for continuous process improvement in partnership with Temecula's residents.

To incorporate the QLMP into the City's budget process, the QLMP includes specific goals based on the Core Values of the QLMP. These goals are used by each department to develop short-term objectives and performance measures for completion in the upcoming fiscal year and are reflected in the Department Information and Performance Measures sections of the budget document.
12 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
The QLMP outlines 7 Core Values:
® Healthy & Livable City
IEEconomic Prosperity
C
. Safe & Prepared Community

BUDGET OVERVIEW
aSustainable & Resilient City
Transportation Mobility & Connectivity
©Accountable & Responsive City
rm
Government
0 Equity
The Fiscal Year 2025-26 Proposed Budget reflects a structurally balanced, healthy fiscal outlook across all major funds for the City of Temecula. General Fund, Special Revenue Funds and TCSD Fund revenues are growing, albeit at a modest pace, and expenditures include all contractually obligated increases offset by various budget reductions necessary to partially absorb rising costs in Public Safety departments.

Major changes from the prior Operating Budget are summarized below.

Revenue &
Expenditures &
Change in
Fund Category Transfers In
Transfers Out
Fund Balance
Variance Analysis
Change from
Change from
from Prior
Prior Year
Prior Year
Year
Revenue growth attributable to Sales Tax, Measure S Tax and Interest GENERAL FUNDS 9,119,015
(22,028,106)
(4,082,295)
Earnings. Expenditure reduction due to reduced Capital Project funding, offset by 5.2% increase in Operating Expenditures.

Revenue growth attributable to Development Impact Fees. Expenditure reduction due to reduced Capital Project funding from Development SPECIAL REVENUE FUNDS 3,437,195
(13,157,830)
1,745,437
Impact Fees, Measure A, Affordable Housing and Road Maintenance Funds.

TEMECULA COMMUNITY SERVICES DISTRICT
Revenue growth attributable to the TCSD Operations and Library Funds. (TCSD)
636,008 573,888
(627,045) Expenditure growth due to higher salaries, benefits and internal service fund allocations.

Revenue decline due to reduced Redevelopment Property Tax Trust

SUCCESSOR AGENCY TO THE REDEVELOPMENT
(595660) 429
,,997
Fund distributions due to the wind down of the former Redevelopment 55,382
AGENCY
Agency. Expenditure increase due partly to Depreciation which had not been budgeted in the prior year.

Revenue decline due to one-time transfers in the prior year from the Information Technology Fund to the Technology Replacement Fund, and

INTERNAL SERVICE FUNDS
(4,210,438) (3,351,405)
212,877 a reduced Transfer in from the Measure S Fund to the Facilities Replacement Fund. Expenditure decline due to reduced Capital Project !ALL BUDGETED CITY FUNDS
8,386,120 (37,533,456)
funding and one-time transfers.
(2,695,645)
Assumptions, combined with known contractual obligations are used in forecasting revenue sources, expenditure trends, as well as the long-term financial forecasts.

Annual Operating Budget 1 13

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Current year revenue assumptions are based on multiple factors, including input from the City's Sales Tax and Property Tax consultants, input from the State of California, local economic trends and development activity.

Assumptions beyond the current year include general inflationary growth projections plus any known development projects, new hotels, expanding businesses and any other specific data that may impact revenue growth. The table below summarizes the growth assumptions for the General Fund Five -Year Revenue Forecast:

Summary of Revenue Assumptions
FY25-26
FY26-27
FY27-28
FY28-29
FY29-30
Property Tax

4.4%

4.0%

4.0%
Sales and Use Tax

2.5%

3.0%

3.5%

3.5%
Less: Sales Tax Sharing Agreement

3.0%

3.0%
Franchise Fees
-7.4%

1.0%

1.0%
Transient Occupancy Tax

1.6%

3.0%

5.0%
-1.9%
Special Tax (Measure C)

9.0%

0.5%

0.5%
Licenses, Permits and Service Charges

13.0%

2.0%

2.0%
Fines and Forfeitures

13.7%

1.0%

1.0%
Use of Money and Property

29.2%

1.0%

1.0%
Intergovernmental Revenues

4.2%

4.0%

4.0%
Reimbursements

5.1%

4.6%

4.9%

4.4%

3.9%
Miscellaneous
-17.9%

1.0%

1.0%
Assumptions used in forecasting Operating expenditures include the following:
■ Contractual obligations:
0 Negotiated cost of living adjustment of 2.3% for City employees 0 Public Safety labor contracts (9.5% for Sheriff positions, 17.5% for Fire positions) 0 Reclassification of 23 full-time authorized positions 0 CalPERS Pension cost sharing of 3% for eligible employees ■ Council policies:
0 Continuation of the Debt/Liability Paydown Strategy ($8,267,833 in FY25-26 for additional discretionary payments towards the City's CAPERS unfunded pension liability) 0 Annual Replacement allocations for Fleet, Technology, Facilities, Support Services, Street Maintenance and Street Light assets.
■ Expected savings achieved from the Debt/Liability Paydown Strategy ($18.5 million over the ensuing five fiscal years)
■ Actuarially determined contributions to the City's pension and retiree health programs Estimated inflation for non -personnel related expenditures

GENERAL FUND ANALYSIS
The General Fund forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully funded in all five years.
14 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Ending fund balance for Fiscal Year 2025-26 is to be $35,523,239, FY25-26 General Fund Balance
projected
535,523,239
of which $26,680,709 is committed to fulfilling the Fund's policy -level reserves of 25% of Operating Expenditures. A total of $465,524 of fund Ava€fahle

30.WRaao
balance is committed to cover the costs of a Sheriff's Deputy position F"undB ace We
ian
assreneal
7 S.D7fl WO
! 6nl mitteU
funded by the Pechanga Tribe.

Secondary
Rese
15,0w,ow
(5%)
A total of $8,377,005 in fund balance is unassigned and available for one- a°'°°°° Reserve for
Economic
time appropriations.
l Certainty
General Fund Revenue Highlights
General Fund revenue is projected to increase by 7.6% over the prior year with a total of $113,978,529. Tax
revenues, excluding the transfer from Measure S Fund, are projected to increase by 3%. The transfer of Measure S
increases significantly to fund contractual increases in Public Safety expenditures.

The General Fund major revenue sources are summarized below:
• Sales Tax ($47,340,358) is projected to
increase by 2.5% over the prior fiscal year
as taxable retail sales are projected to
increase slightly, although there are still
concerns about the overall trajectory of
the economy.
• Property Tax ($12,164,898) is projected to
increase by 4.4%, due to a stable housing
market. Property Tax revenue for Fiscal
Year 2025-26 is based on assessed
Fiscal Year 2025-26 General Fund Revenue-$113,978,529
Franchise Fees TOT
Prop. Tax in Lieu of 4% 4% Measure C
VLF � _ // 2%
10%
Licenses/Permits
6%
Property Tax
11% Measure 5
12%
--Transfers In
s%
Sales Tax I Reimbursements
40% Other 4%
2%
valuation from the year prior, which have
shown steady growth, as inventory is still low and home prices continue to rise slightly. • Franchise Fees ($4,229,094) are projected to decrease by 7.4% due to lower natural gas rates and continuing declines in cable subscribers.
• Transient Occupancy Tax ($4,500,000) is projected to increase by 1.6% over the prior year. Both occupancy rates and the average daily hotel rates have leveled off recently due to concerns over the economy. With the opening of a new hotel in Fiscal Year 2025-26, Transient Occupancy Tax is expected to grow. • Licenses, Permits & Service Charges ($6,623,241) are projected to increase by 13% due to the continuation of development activity within the City.
• Intergovernmental Revenues ($11,713,171) are projected to increase by 4.2% due to the increases expected in Property Tax In Lieu of Vehicle License Fees which is driven by property value assessments within the City.

Annual Operating Budget 1 15

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
• Operating Transfers In ($5,428,738) are projected to decrease by 35.5% due to a $3 million reduction in the transfer from the City's Pension Trust, in accordance with the City's Debt/Liability Paydown Strategy to fully fund the accrued pension liability by Fiscal Year 2028-29. • Operating Transfers In - Measure S ($13,548,319) will continue to fund 11 Sheriff Deputies, staffing for Fire Station No. 95, funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles, and enhanced park maintenance services.

General Fund Expenditure Highlights
The largest expenditure of the General Fund is Public Safety, making up 55% of total General Fund expenditures. In
accordance with the Measure S ballot language and City Council appropriation guidelines, the City has invested heavily in Public Safety over the past several years and continues to hold Public Safety as its highest priority.

In addition to the ongoing Measure S-funded Public Safety expenditures, the Sheriff Department will continue to exceed the staffing goal of one officer per 1,000 residents and the Fire Department will continue to provide four firefighter personnel per engine at all five fire stations.

General Fund expenditures total $106,722,837, which represents an 8% increase over the prior fiscal year. • Sheriff's Office ($48,474,402) is increasing by 11.1% over the prior year due to inflationary adjustments in the contract with Riverside County, including a new multi -year labor agreement which includes successive pay adjustments. The budget reflects 117 Sworn Deputies, which includes continued patrol coverage of 210 hours per day, and full staffing for the Metro and CORE Teams. The budget also includes the replacement of four motorcycles.
• Fire Department ($13,923,013) is increasing by 25.6% due to inflationary adjustments in the contract with Riverside County combined with the reversal of a one-time CalPERS Retirement offset administered by the State in FY2024-25. The total Fire budget of $26.4 million is offset by the Structural Fire Tax Credit of $12.4 million. The department employs 79 positions and provides four firefighters per engine/truck staffing model.
• Non -Safety Departments ($47,128,746) represents a 3.1% increase over the prior year, due primarily to the reclassification of several positions and the calculated 2.3% cost of living adjustment in accordance with the City's labor agreements.
• Non -Departmental (-$2,803,324) includes the projected savings in the CAPERS unfunded liability offset by the Retiree Medical Contribution and Property Tax Administrative fees. 16 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Operating Transfers Out & One -Time Payments
This category of expenditures reflects funds that are transferred to meet the Debt/Liability Paydown Strategy, to the Capital Improvement Program and the Fire Facility Acquisition Fund. • CaIPERS Unfunded Pension Liability ($8,267,833) to further reduce the City's annual pension costs by an estimated $3.5 million per year.
• Capital Improvement Fund ($500,000) to support the General Plan Update project.

Overall, the General Fund remains structurally balanced, with revenues exceeding expenditures, and reserves are fully -funded each year of the ensuing five-year financial forecast. The City continues to budget in a conservative, yet realistic, manner while keeping close watch on several economic indicators. As conditions change throughout the fiscal year, adjustments to revenue or expenditure budgets will be recommended to the City Council for their approval.

MEASURE S FUND
With the approval of a one -cent transactions and use tax measure in November 2016, the Measure S Fund was
established to account for this new revenue source. Fiscal Year 2025-26 Measure S revenue is projected to be $40,028,469.

Measure S appropriations of $42,771,911 reflect the priorities established in Budget Policy IV — Transactions and Use Tax Funding.

Public Safety (32%)
The budget includes $13,754,539 of Measure S funding to support the contracts for the Sheriff and Fire Departments.

Measure S provides for 11 Sheriff's Deputies, staffing for Fire Station No. 95, and funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles.

Measure S - FY25-26 Appropriations
$42,771,911
Asset Management/Investment (5%)
As noted in Council's appropriation guidelines for Measure S, ensuring adequate reserves are set aside for the future replacement of City -owned assets is critical to the long-term viability of the City's operations. For Fiscal Year 2025- 26, Measure S is contributing $1,250,000 to the Facilities Replacement Fund, and $1,000,000 to the Streets Maintenance Fund.

Capital Improvement Program (21%)
The budget includes an additional $8,809,109 appropriation in Fiscal Year 2025-26 to complement the current year budget of $34,283,385 to fund multiple CIP projects. The influx on Measure S funding has allowed the City to leverage other funding sources, such as Development Impact Fees and various grant funds, to complete projects in a timelier manner.

Annual Operating Budget 1 17

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Major Projects funded by Measure S include:
• Fire Station 73 Gym/Garage - to construct a gym, storage room and a second garage at the station to house the squad and additional vehicles.
• Fire Station 84 Renovation — to completely renovate the existing station including the addition of a gym, upgraded electrical, windows, paint and renovated living quarters. • Ronald Reagan Sports Park Hockey Rink - to renovate the existing outdoor hockey rink by installing new flooring, dasher boards, scoreboard and a roof structure. • Ronald Reagan Sports Park Skate Park — to remove and replace the existing skate park and install state-of- the-art street skate plaza elements.

General/Community Services (42%)
The Temecula Community Services District (TCSD) has historically been funded with voter -approved Measure C funding and program -related revenue. Measure S funding is used to augment Measure C, in order to maintain the award -winning programs, activities and events TCSD provides to the citizenry. • TCSD Operations contribution - $16,480,467
• Library contribution - $1,384,016
• Enhanced Custodial Services - $93,780
The ending fund balance within the Measure S Fund is projected to be $24,605,093, which will carry -forward to the ensuing fiscal year. Over the forecasted five-year period, Measure S is projected to have adequate resources to fund public safety, asset management, capital projects and general services.

OTHER GENERAL FUNDS
Fund 006— Fire Facility Acquisition Fund: This fund was established in Fiscal Year 2021-22 to accumulate resources to acquire and/or construct property for a future Fire Station. The ending fund balance is projected to be $5,031,293 for Fiscal Year 2025-26.

Fund 110 — COVID-19 Pandemic Community Reinvestment Program Fund: This fund was established in Fiscal Year 2021-22 to provide grant funding to support the local economy to rebound from the global pandemic. A total of $14,080,000 was transferred into this fund from available General Fund balance. The Council approved six funding categories, including: (1) Business Support ($3,080,000); (2) Non -Profit Support ($1,000,000); (3) Homeless Services ($1,000,000); (4) Housing Assistance ($5,500,000); (5) Behavioral Health Services ($1,500,000) and (6) Higher Education/Workforce Development ($1,000,000), leaving $1,000,000 subject to further Council appropriation.

MAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law. The City has several Special Revenue Funds. The major Special Revenue funds are highlighted below.
18 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Fund 100 - Gas Tax: Gas Tax revenue is projected to be $3,143,671, which reflects an increase of 0.4% as volume of gasoline sales is projected to remain steady. These funds are transferred to the General Fund to support street and road maintenance.

Fund 102 — Road Maintenance Rehabilitation Account (RMRA): Per the Road Repair and Accountability Act of 2017 (SB1-Beall), increased gas tax and vehicle registration fees were imposed to fund street and road projects and other transportation uses Statewide. RMRA revenue is projected to be $3,037,266, which is an increase of 4.4%.

These funds are allocated to the Pavement Rehabilitation Capital Improvement Project.

Fund 103 — Street Maintenance: This fund was established in Fiscal Year 2018-19 to accumulate resources for the future replacement of streets and roads throughout the City. Measure S contributes annually to this fund, which has a projected Fiscal Year 2025-26 ending balance of $4,763,355. FY2025-26 appropriations of $1,927,477 is to partially fund the Overland Drive Widening capital project.

Fund 105 — NPDES In Lieu Fees: This fund was established in Fiscal Year 2019-20 to account for the collection of In Lieu fees associated with the National Pollutant Discharge Elimination System (NPDES). Revenue is received as private development subject to NPDES requirements occur. Fiscal Year 2025-26 expenditures of $114,150 is programmed to install storm drain inlet filters throughout the City.

Fund 106 — Uptown Temecula New Streets In -Lieu Fees: This fund was established in Fiscal Year 2019-20 in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In -Lieu Fee. Developers within the Specific Plan who cannot build new streets will be charged the In Lieu Fee. No activity is anticipated in this fund for 2025-26, and the ending fund balance totals $983,842.

Fund 120 — Development Impact Fees (DIF): DIF revenue is projected to be $8,073,996, which reflects an increase of 194.6% due to the higher level of activity in the prior year occurring in the Altair, Elderberry Park and Sommer's Bend developments. DIF revenue varies from year-to-year as it is based on anticipated development projects. DIF Revenues are transferred to the CIP to fund capital projects. Fiscal Year 2025-26 ending fund balance is projected to be $20,237,550.

Fund 125 — Public, Education & Government (PEG): PEG Fund revenues are received from local cable operators for the sole purpose of supporting the access facilities within the City. PEG Revenues are projected to be $215,436, which will be spent on various technology equipment used to support the broadcast of City Council meetings and events. Fiscal Year 2025-26 ending fund balance is projected to be $1,261,637.

Fund 140 — Community Development Block Grant (CDBG): CDBG grant revenues are received from the U.S.

Department of Housing and Urban Development (HUD). Fiscal Year 2025-26 revenue is projected to be $612,781 and will support operations, community grants and capital projects.

Fund 145 —Temecula Energy Efficiency Asset (TEAM) Fund: This fund was established to capture energy efficiency rebates to be used to fund future energy efficiency projects. In Fiscal Year 2020-21, the City received a rebate of $640,754 for the acquisition of street lights and conversion to LED bulbs. There is no activity programmed for Fiscal Year 2025-26, and the ending fund balance is projected to be $126,157.

Annual Operating Budget 1 19

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Fund 150 — AB2766 Motor Vehicle Subvention Fund: This fund was established to account for subvention funds used to implement programs/projects to reduce air pollution from motor vehicles. Fiscal Year 2025-26 revenue is projected to be $166,694. The majority of these funds are programmed for capital projects, including the Citywide Bike Lane and Trail Program, and to support the Clean Cities Coalition.

Fund 160 — Supplemental Law Enforcement Services Fund: This fund was established to account for state grant funds to assist cities in delivering front-line law enforcement services. Fiscal Year 2025-26 revenue is projected to be $283,502 and will be transferred to the General Fund to support law enforcement.

Fund 165— Affordable Housing Fund: The Affordable Housing Fund reflects the housing -related activities of the former Temecula Redevelopment Agency. Total Revenue for Fiscal Year 2025-26 of $488,091 includes the State Department of Finance allocation of $250,000 designated for the administration of the wind down of redevelopment obligations, plus $238,091 in investment interest. Expenditures reflect the ongoing administration of the City's Affordable Housing program.

Fund 170 — Measure A: Measure A revenue is projected to be $4,242,301which reflects a 7.1% decrease over the prior year, due to a slower economy. This revenue is restricted for use on local streets and roads and is programmed to support street and road maintenance. Fiscal Year 2025-26 ending fund balance is projected to be $976,020.

INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the funding of goods and services provided by one department to other benefitting departments on a cost -reimbursement basis. Additionally, the City maintains several Replacement Funds designed to accumulate resources for the future replacement of City equipment, technology, and facilities.

Fund 300 — Insurance: Projected expenses total $3,800,317, which covers the cost of administering the City's liability and property insurance programs. The projected fund balance is $2,077,725 exceeds the desired reserve level of $1.5 million, which is three times the City's self -insured retention of $500,000 per incident.

Fund 305 — Workers' Compensation: Projected expenses total $657,169, which covers the cost of administering the City's self -insured Workers' Compensation program. The projected fund balance is $1,478,521 and nearly meets the desired balance of $1.5 million, which represents three times the City's self -insured retention of $500,000 per incident.

Fund 310 — Vehicles and Equipment: Projected expenses total $799,527 to replace several fleet vehicles and heavy equipment that have reached the end of their useful lives. The projected fund balance is $5,575,061. Replacements planned for 2025-26 include a Boom Truck, Construction Dump Truck and a Ford F-150 Lightning. Additionally, depreciation expense has been budgeted this year, adding $429,527 in expenditures for this Fund.

Fund 320 — Information Technology: Projected expenses total $7,227,781, which provides for the management of the City's computers, audio-visual equipment, cyber security, and telephone systems. The projected fund balance is $850,797.
20 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Fund 325 — Technology Replacement: Projected expenses total $516,158 to replace the City's phone system, network switch, audio equipment at the Community Recreation Center Amphitheater and to fund the annual computer replacement program. The projected fund balance is $4,030,642.

Fund 330 — Support Services: Projected expenses total $387,827, which provides for the management of the City's central reception, printing and mail activities. The projected fund balance is $22,976.

Fund 335 — Support Services Replacement: Projected expenses total $72,200 to replace the Central Services copy machines and includes $42,200 in depreciation expenses. The projected fund balance is $383,895.

Fund 340 — Facilities: Projected expenses total $1,645,947, which provide for the operations and maintenance of the City's buildings and parking structure. The projected fund balance is $92,364.

Fund 350 — Facility Replacement: Projected expenses total $1,087,338 for Capital Outlay to support the City Facilities Rehabilitation capital project and includes $87,338 in depreciation expenses. The projected fund balance is $3,548,715.

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA)
Fund 380 — SARDA: Projected expenses total $7,090,641 primarily to pay debt service expenditures on the outstanding 2017A and 2017B Redevelopment Agency Tax Allocation Bonds, plus the addition of $1,179,997 budgeted for expected depreciation expense, not included in the prior year.

TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)
The Temecula Community Services District was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs and events. TCSD also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, and library services (known as Service Level Funds).

Combined revenue for TCSD totals $36,143,057, which reflects an increase of 1.8%over the prior year. The majority of the increase is from TCSD Operations and the Temecula Public Library. Combined expenditures for TCSD total $36,770,101 and reflect an increase of 1.6% due primarily to the addition of one new Signal Technician I position to support Service Level B (Street Lights), and higher waste hauling costs reflected in the Service Level D (Refuse/Recycling) Fund.

Ending fund balance for TCSD is projected to be $4,849,853 for Fiscal Year 2025-26.

Annual Operating Budget 1 21

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
TCSD Operations, excluding the Service Levels and Library Funds, is projected over a five-year period, as summarized below.
2023-24
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
Actuals
Revised
Proposed
Projection
Projection
Projection
Projection
Measure C Revenue
1,908,085
1,926,088
1,935,718
1,955,076
1,974,626
1,994,373
2,014,316
Measure S Revenue
13,254,402
15,864,726
16,480,467
17,388,215
18,151,038
18,945,152
19,771,855
Program Revenue
2,779,695
2,836,576
2,860,431
2,889,036
2,917,926
2,947,105
2,976,576
Total Revenue
17,942,182
20,627,390
21,276,617
22,232,326
23,043,590
23,886,630
24,762,748
Operations Expenditures
16,459,137
19,166,127
19,303,385
20,164,533
20,914,238
21,693,679
22,504,086
Maintenance Expenditures
1,775,748
1,950,588
2,008,203
2,067,793
2,129,353
2,192,951
2,258,662
Total Expenditures
18,234,885
21,116,715
21,311,588
22,232,326
23,043,591
23,886,630
24,762,748
Beginning Balance
916,999
624,296
134,971
100,000
100,000
100,000
100,000
Ending Balance
624,296
134,971
100,000
100,000
100,000
100,000
100,00
Revenue from Measure S
74%
77%
77%
78%
79%
79%
80%
The Five -Year Forecast shows the various revenue sources and projected operating expenditures, which are increasing between 2.0 — 4.3% per year. The contribution from Measure S increases from 74% in 2023-24 to 80% by 2029-30. A long-term fiscal strategic plan is recommended to address the increased reliance on Measure S to balance this Fund into the future.

CAPITAL IMPROVEMENT PROGRAM (CIP)
The City's five-year Capital Improvement Program (CIP) is presented to the City Council under separate cover. This program provides a five-year plan for capital
improvements that is updated annually to ensure
compliance with the program. The impact of capital
projects on maintenance and operating costs were taken
into consideration in the development of the operating
budget.

Project
Type
Number of
Projects
Total Project
Cost
Circulation
24 632,429,570
Housing
4 20,401,000
Infrastructure
49 117,740,242
Parks/ Re c
18 59,908,080
CFD-Funded
2 63,591,689
The CIP includes a total of $894,070,582 in identified Total CIP 97 894,070,582 capital projects, with a total of $624,379,144 in project funding, representing 70% of all Project Costs. There is $269,691,438 in "Unspecified" project funding, indicating that a revenue source has not yet been secured for these projects, which have been identified as necessary infrastructure for the City, and will require that funding be secured before the project construction can commence.

Capital projects are categorized into five Project Types, as noted in the adjacent table. 22 1 Annual Operating Budget

TRANSMITTAL MESSAGE
Various sources contribute to the funding of the Capital Improvement Program, including many City Funds, State
and Federal Grants, Community Facility District Funds,
Successor Agency Funds, and Transportation Uniform
Mitigation Fee (TUMF) Funds. The City seeks all available funding sources for projects, including federal, state, and local grants, outside contributions and City funds. Total funding for the Fiscal Years 2026-30 CIP program reflects 61% from outside funding sources, with the remaining 39% provided by various City funds, including Measure S,
Measure A, Development Impact Fee Funds, General Fund,
Capital Financing, and several other sources.

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Capital Protect Funding Sources
TUMF ,
54,161,598, 9%
City Funds,
State/Local Grants, 244,469,320,
79,448,743, 13% 39%
Successor
Agency, �__
750,000,0%
Reimm 6ursemes,
40,952,252, 6%
Federal Grants,
96,030,119, 15%
Development Community
Impact Fees, Facility Districts,
53,591,561, 9% 54,975,557 , 9 %
Only one new project has been added to the CIP, the Local Roadway Safety Plan Update ($155,000) which is designed to bring the Plan in line with federal safety requirements.

As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. The amounts identified in the table below are incorporated into the Proposed Operating Budget and the Five -Year Financial Projections.

Summary of Operating & Maintenance Impacts
Maintenance and Operations of
PW17-01/711
- CITY SECURITY CAMERA SYSTEM
Security Camera System
300,000
300,000
300,000
300,000
300,000
FN19-01/724 -

CITYWIDE FINANCIAL SYSTEM

UPGRADE
Annual Software Maintenance
86,000
86,000
86,000
86,000
86,000

ACQUISITION
& LIGHT EMITTING DIODE (LED)

RETROFIT
Electricity Savings
(695,286)
(709,475)
(723,665)
(738,138)
(752,901)
PW21-09/683
- ELECTRIC VEHICLES CHARGING

STATION
Electric Charging Vehicles Fees
(3,100)
(3,100)
(3,100)
(3,100)
(3,100)
PW17-19/690
-1-15/STATE ROUTE 79 SOUTH

INTERCHANGE ENHANCED LANDSCAPING
Required by Caltrans
60,805
62,046
63,289
65,188
67,144
PW17-21/692 - MARGARITA RECREATION CENTER
Staffing for MRC (4 positions)
526,609
548,551
570,493
591,600
614,370
Project Staffing for MRC
(45 positions - 13.07 FTEs)
705,946
735,361
764,775
795,366
825,978
Additional Utility Costs
71,371
72,828
74,285
77,034
79,999
Janitorial/Security
129,251
131,888
134,526
139,504
144,873
1,433,177
1,488, 628
1,544, 079
1,603, 504
1,665,220
IT20-01/780 - OLD TOWN SECURITY CAMERA &
Maintenance fee for Old Town

SOUND SYSTEM
Sound System
75,000
75,000
75,000
75,000
75,000
PWPE07-03/PW23-18- LONG CANYON CREEK PARK

RESTROOMS
Janitorial Services
29,866
30,475
31,085
31,706
32,340
PWPE-07/155 - PARK RESTROOMS RENOVATIONS,

EXPANSION AND ADA IMPROVEMENTS
Janitorial Services
27,591
28,154
28,717
29,292
29,878
Total Incremental Operating & Maintenance
Impacts 1,343,919 1,388,203 1,432,490 1,481,158 1,531,921 2025-26 AUTHORIZED STAFFING
Total authorized Full Time Equivalent (FTE) positions total 202.2 authorized positions, including five Council Members. The increase reflects 1 new position (Signal Technician 1) compared to the prior year.

Annual Operating Budget 1 23

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
Public Safety personnel is provided through contracts with Riverside County and CalFire. A total of 117 sworn Sheriff's Deputies and 18 Community Service Officers are included in the Sheriff's budget, and a total of 79 personnel are reflected in the Fire Department budget for Fiscal Year 2025-26.

City of Temecula
History of Authorized Positions
2so.00
200.00
iso.00
10100

50.00 a-1 N 'n C ✓] �i 1, 0 0 9 0 0 0
C�1 O�1 O d C G O O tl
210.75
n 00 Qf O •i
0 0 0 o 0 a n v
� - LL LL
4 to
'D
N
N
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n W
O
o
C
O
N
G
C3
202.20
N f�V
N
N
N
N H
O
C
C O
C
C 6
In addition to the Authorized Positions, the City employs three Limited -Term -Assignment positions related to the implementation of a new Human Resources/Payroll software system. A significant number of part-time, non- benefitted Project employees are also employed to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2025-26, an estimated 90 full-time equivalents will be hired as seasonal and part-time support.

CONCLUSI
In conclusion, the City of Temecula is in a solid fiscal position with the General Fund balanced and all reserves fully funded not only in Fiscal Year 2025-26 but throughout the ensuing five-year period. The Capital Improvement Program is robust, with 70% of all Project Costs funded, and will deliver a wide array of improvements to infrastructure, facilities, affordable housing, enhanced parks, new trails and many other amenities the citizens of Temecula enjoy.

I would like to express my appreciation to the City Council for providing the direction and support crucial to achieving the City's goals. I would also like to recognize the contributions of City staff for not only creating a responsive operating budget, but also for their commitment to providing top quality services to all who live, work, and play in Temecula. I would like to give special thanks to the City's Budget Team: Jennifer Hennessy, Director of Finance; Ward Komers, Assistant Director of Finance; Paula Majors, Finance Manager; and Catlin Dorset, Budget Manager for their long hours and dedication to the City and this budget process.

Sincerely,
0,6 — ol,_
AarAdams
City Manager
24 1 Annual Operating Budget

CITV OF TEMECULA, CALIFORNIA

PROPOSED
ANNUAL

OPERATING
BUDGET
FISCAL
YEAR
202S-2026
1 7Z
1,11" . N.
2M
`� a R• Trm

ANNUAL OPERATING BUDGET
Fiscal Year 2025-26
City Council
Brenden Kalfus, Mayor
Jessica Alexander, Mayor Pro-Tem
Zak Schwank, Council Member
James Stewart, Council Member
Matt Rahn, Council Member
City Management
Aaron Adams, City Manager
Kevin Hawkins, Assistant City Manager
Luke Watson, Deputy City Manager
Jennifer Hennessy, Finance Director
City of Temecula
41000 Main Street
Temecula, California 92590
(951) 694-6430
TemeculaCA.gov

A
coo�(e^o
The Heart of Southern California
Wine Country
Temecula Mayor Brenden Kalfus was first elected to serve on the City Council in 2022. Mayor Kalfus is notably the first Council Member to have been raised in Temecula since birth. He is now raising his five children alongside his wife, whom he met while attending Temecula Valley High School. "It is an honor and a privilege to be the Mayor of the City I grew up in," Mayor Kalfus states. "Having lived in Temecula for over 33 years, I've seen the growth and change Temecula has gone through. I understand what makes our City special, and I also understand the challenges we face as a community. This year, as your Mayor of Temecula, I will continue to keep public safety, our City's infrastructure, and community engagement my top priorities."
With a long-term perspective on the City of Temecula and experiences gained from other cities during his college and his professional career, he places a strong emphasis on investing in public safety and maintaining a safe community. He advocates for beautifully maintained parks, streets, and infrastructure, all of which contribute to a high quality of life where families and local businesses can thrive. erenden Kalfus
Mayor
City of Temecula
I
1 TABLE OF CONTENTS
COVER

TABLE OF CONTENTS

INTRODUCTION
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
0 3
9 TransmittalMessage---------------------------------------------------------------------------------------------------------------------- 9 Directory------------------------------------------------------------------------------------------------------------------------------------ 26 CityOrganizational Chart --------------------------------------------------------------------------------------------------------------- 27 Mission and Value Statements -------------------------------------------------------------------------------------------------------- 28 CitywideLong -Term Goals-------------------------------------------------------------------------------------------------------------29 Government Finance Officers Association (GFOA) Award ---------------------------------------------------------------------- 31 California Society of Municipal Finance Officers (CSMFO) Award ------------------------------------------------------------ 32 City of Temecula at a Glance----------------------------------------------------------------------------------------------------------33 GUIDE TO THE BUDGET DOCUMENT--------------------------------------------------------------------------------------------------- 35 Understanding the Budget Document---------------------------------------------------------------------------------------------- 35 BudgetaryFund Structure -------------------------------------------------------------------------------------------------------------- 37 Descriptionof Funds --------------------------------------------------------------------------------------------------------------------- 39 Fundsand Departments----------------------------------------------------------------------------------------------------------------44 FundingSources by Department ------------------------------------------------------------------------------------------------------ 46 BudgetProcess ---------------------------------------------------------------------------------------------------------------------------- 46 Budget Engagement Sessions---------------------------------------------------------------------------------------------------------50 BudgetCalendar -------------------------------------------------------------------------------------------------------------------------- 51 FIVE-YEAR FORECAST ----------------------------------------------------------------------------------------------------------------------- 53 Long Range Financial Projection------------------------------------------------------------------------------------------------------53 Five -Year Financial Projection — General Fund------------------------------------------------------------------------------------ 55 Five -Year Revenue Projection — General Fund------------------------------------------------------------------------------------ 57 Five -Year Expenditure Projection — General Fund-------------------------------------------------------------------------------- 59 Five -Year Financial Projection — Measure S Fund--------------------------------------------------------------------------------- 63 Five -Year Financial Projection —Temecula Community Services District Fund -------------------------------------------- 67 FINANCIAL SUMMARIES------------------------------------------------------------------------------------------------------------------- 69 FundBalance Summary----------------------------------------------------------------------------------------------------------------- 69 Major Revenue Sources ----------------------------------------------------------------------------------------------------------------- 71 GeneralFund------------------------------------------------------------------------------------------------------------------------------ 76 General Fund — Revenue by Source------------------------------------------------------------------------------------------ 79 GeneralFund — Revenue Detail ------------------------------------------------------------------------------------------------ 80 General Fund — Fund Summaries ---------------------------------------------------------------------------------------------- 82 Annual Operating Budget 1 3

Special Revenue and Debt Service Funds ------------------------------------------------ Special Revenue and Debt Service Funds — Revenue Detail ----------------- Special Revenue and Debt Service Funds — Fund Summaries--------------- TemeculaCommunity Services District (TCSD)----------------------------------------- TCSD — Revenue by Source ---------------------------------------------------------- TCSD — Revenue Detail ---------------------------------------------------------------- TCSD — Fund Summaries -------------------------------------------------------------- Successor Agency to the Temecula Redevelopment Agency (SARDA)----------- SARDA — Fund Summary -------------------------------------------------------------- Internal Service Funds ------------------------------------------------------------------------ Internal Service Funds — Revenue Detail ----------------------------------------- Internal Service Funds — Fund Summaries --------------------------------------- Capital Improvement Program Fund ------------------------------------------------------ CIP— Fund Summary------------------------------------------------------------------ City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
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121
123
132
133
PERFORMANCE MEASURES ------------------------------------------------------------------------------------------------------------- 135 DEPARTMENTAL INFORMATION------------------------------------------------------------------------------------------------------151 City Council ---------------------------------------
City Manager ------------------------------------
CityClerk ------------------------------------------
City Attorney -------------------------------------
Finance Department ---------------------------
Human Resources and Risk Management
Community Development Department ---
Public Works Department --------------------
Temecula Sheriff's Office ---------------------
Fire Department --------------------------------
Non-Departmental -----------------------------
Temecula Community Services District ---
Internal Services Funds ------------------------

CAPITAL IMPROVEMENT PROGRAM
CIP — Capital Improvement Program Summary-------
CIP — Description of Revenue Sources ------------------- CIP — Capital Projects Revenue Summary--------------
CIP — Major Revenue Sources ----------------------------- CIP — Capital Project Expenditure Summary-----------
CIP — Expenditure Summary by Project Type----------
CIP — Capital Projects Summary — by Funding Source
----193
---- 203
---- 215
---- 225
---- 233
---- 237
---- 251
265
265
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271
274
275
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280
4 1 Annual Operating Budget

CIP — Capital Projects Summary — by Project ------------------------------------- CIP — Summary of Operating & Maintenance Costs ---------------------------- CIP — Future Years Project -------------------------------------------------------------

BUDGET AND FISCAL POLICIES ----------------------------------------------------------

1. Financial Strategic Plan Purpose and Organization ---------------------------------- A. Annual Operating Budget (AOB)--------------------------------------------------- B. Balanced Budget ----------------------------------------------------------------------- C. Five -Year Financial Forecast -------------------------------------------------------- D. Capital Improvement Program (CIP) ----------------------------------------------

11. Financial Reporting -------------------------------------------------------------------------- A. Annual Reporting ---------------------------------------------------------------------- B. Interim Reporting --------------------------------------------------------------------- C. Budget Amendments ----------------------------------------------------------------- D. Extended Annual Reporting --------------------------------------------------------- 111. Fund Balance and Reserves ---------------------------------------------------------------- A. Fund Balance Policy ------------------------------------------------------------------- B. Reserve for Economic Uncertainty ------------------------------------------------ C. Secondary Reserve for Contingencies -------------------------------------------- D. Future Capital Project Designations ---------------------------------------------- E. Other Designations and Reserves ------------------------------------------------- F. Fund Balance Components ---------------------------------------------------------- G . Hierarchy of Spending Fund Balance --------------------------------------------- H. Unassigned Fund Balance —General Fund -------------------------------------- IV. Transactions and Use Tax Funding (Measure S) -------------------------------------- A. Measure S Revenue ------------------------------------------------------------------- B. Appropriation Priorities of Measure S Revenue ------------------------------- V. Contingency Planning ----------------------------------------------------------------------- A. One -Time Events ---------------------------------------------------------------------- B. Ongoing Fiscal Constraints ---------------------------------------------------------- V1. Staffing Policy --------------------------------------------------------------------------------- A. Regular Staffing ------------------------------------------------------------------------ B. Project Staffing ------------------------------------------------------------------------- C. Temporary Staffing -------------------------------------------------------------------- D. Work Hours ----------------------------------------------------------------------------- E. Overtime Management -------------------------------------------------------------- F. Independent Contractors ------------------------------------------------------------ G. Productivity----------------------------------------------------------------------------- City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
293
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306
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308
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309
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Annual Operating Budget 1 5

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
H. Contracting for Services — Private Sector ------------------------------------------------------

1. Contracting for Services — Government Service Contracts -------------------------------- J. Contracting for Services — Regional Approach ----------------------------------------------- K. Comprehensive Annual Leave Payout ---------------------------------------------------------- VI 1. Asset Management and Replacement Policy ----------------------------------------------------- A. Replacement Funds --------------------------------------------------------------------------------- V I I I. Capital Financing and Debt Management --------------------------------------------------------- A. Capital Financing ------------------------------------------------------------------------------------ B. Debt Management ---------------------------------------------------------------------------------- C. Debt Capacity ----------------------------------------------------------------------------------------- D. Independent Disclosure Counsel ---------------------------------------------------------------- E. Land -Based Financings ----------------------------------------------------------------------------- F. Conduit Financings ---------------------------------------------------------------------------------- G. Refinancings ------------------------------------------------------------------------------------------ H. Types of Debt That May be Issued -------------------------------------------------------------- I. Policy Goals Related to Planning Goals and Objectives ------------------------------------ J. Creation of Services Community Facilities Districts ----------------------------------------- I X. I n to rf u n d Transfers and Loans Policy ----------------------------------------------------------------- A. Establishment of Various Funds ----------------------------------------------------------------- B. Transfer Between Funds --------------------------------------------------------------------------- C. I me rfu n d Loans -------------------------------------------------------------------------------------- X. Appropriations Limitation -------------------------------------------------------------------------------- A. Adopting a Resolution ------------------------------------------------------------------------------ B. Supporting Documentation Available for Review ------------------------------------------- C. Calculating Appropriations ------------------------------------------------------------------------ D. Review of User Fees and Charges --------------------------------------------------------------- E. Support of Legislation or Initiatives ------------------------------------------------------------- F. Voter Approval to Amend Appropriation Limit ---------------------------------------------- XI. Pension Rate Stabilization Policy ----------------------------------------------------------------------- A. Establishment of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust--- B. Funding of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust----------- XII. Signature Delegation Policy --------------------------------------------------------------------------- A. Delegation of City Manager Signature Authority -------------------------------------------- B. Delegation of City Manager Settlement Authority------------------------------------------ X I I I . Emergency Appropriation Policy --------------------------------------------------------------------- XIV. Debt/Liability Paydown Strategy Policy ------------------------------------------------------------

AP P E N D I C ES----------------------------------------------------------------------------------------------------------- 320
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6 1 Annual Operating Budget

AppendixA — Personnel ------------------------------------------------------------------------- Summary of Changes in Authorized Positions, Personnel and Benefit Cost Schedule of Authorized Positions ----------------------------------------------------- Schedule of Changes in Allocated Positions ---------------------------------------- Summary of Budgeted Positions ------------------------------------------------------ Appendix B —Supplemental Information --------------------------------------------------- LocatorMap -------------------------------------------------------------------------------- Community Profile and Demographics ---------------------------------------------- Consolidated Capital Outlay ------------------------------------------------------------ GANN Appropriations Limit ------------------------------------------------------------- Assessed Value of Taxable Property -------------------------------------------------- Summary of Federal Grant Expenditures -------------------------------------------- LegalDebt Margin ------------------------------------------------------------------------ Fiscal Year 2024-25 Debt Obligations ------------------------------------------------ Summary of Property Tax Collections ------------------------------------------------ Principal Secured Property Owners -------------------------------------------------- Computation of Direct and Overlapping Bonded Debt -------------------------- Largest Employers by Number of Employees -------------------------------------- Comparative City Information --------------------------------------------------------- Summary of Interfund Transfers ------------------------------------------------------ Summary of Affordable Housing Investment -------------------------------------- Summary of City Grant Recipients ---------------------------------------------------- Community Reinvestment Program Funding Matrix ----------------------------- Additional Resources --------------------------------------------------------------------- Appendix C — Glossary/Index ------------------------------------------------------------------ Glossary of Acronyms -------------------------------------------------------------------- Glossaryof Terms ------------------------------------------------------------------------- Index----------------------------------------------------------------------------------------- City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
-339
-339
-341
-347
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-355
-355
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-361
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Annual Operating Budget 1 7

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
8 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
May 22, 2025
Honorable Mayor and Members of the City Council:

The resulting budget is realistic and balanced and continues to provide quality services to the community while effectively utilizing available resources.

Offering the finest quality of life, Temecula is listed among the safest cities in the State and Nation per FBI statistics.

Annual Operating Budget 1 9

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ECONOMIC INDICATORS
The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections.
#,,
19 (D ift ;;d..

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE

Annual Operating Budget 1 11

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

Recent legislation that potentially impacts the City's operations include the following:

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TRANSMITTAL MESSAGE
The QLMP outlines 7 Core Values:
® Healthy & Livable City
IEEconomic Prosperity
C
. Safe & Prepared Community

Major changes from the prior Operating Budget are summarized below.

Revenue decline due to reduced Redevelopment Property Tax Trust

Revenue decline due to one-time transfers in the prior year from the Information Technology Fund to the Technology Replacement Fund, and

Annual Operating Budget 1 13

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

Summary of Revenue Assumptions
FY25-26
FY26-27
FY27-28
FY28-29
FY29-30
Property Tax

4.4%

4.0%

4.0%
Sales and Use Tax

2.5%

3.0%

3.5%

3.5%
Less: Sales Tax Sharing Agreement

3.0%

3.0%
Franchise Fees
-7.4%

1.0%

1.0%
Transient Occupancy Tax

1.6%

3.0%

5.0%
-1.9%
Special Tax (Measure C)

9.0%

0.5%

0.5%
Licenses, Permits and Service Charges

13.0%

2.0%

2.0%
Fines and Forfeitures

13.7%

1.0%

1.0%
Use of Money and Property

29.2%

1.0%

1.0%
Intergovernmental Revenues

4.2%

4.0%

4.0%
Reimbursements

5.1%

4.6%

4.9%

4.4%

3.9%
Miscellaneous
-17.9%

1.0%

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

30.WRaao
balance is committed to cover the costs of a Sheriff's Deputy position F"undB ace We
ian
assreneal
7 S.D7fl WO
! 6nl mitteU
funded by the Pechanga Tribe.

Annual Operating Budget 1 15

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

Measure S appropriations of $42,771,911 reflect the priorities established in Budget Policy IV — Transactions and Use Tax Funding.

Public Safety (32%)
The budget includes $13,754,539 of Measure S funding to support the contracts for the Sheriff and Fire Departments.

Measure S provides for 11 Sheriff's Deputies, staffing for Fire Station No. 95, and funding for the future replacement of the newly acquired fire ladder truck and inspection vehicles.

Annual Operating Budget 1 17

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

These funds are allocated to the Pavement Rehabilitation Capital Improvement Project.

Fund 140 — Community Development Block Grant (CDBG): CDBG grant revenues are received from the U.S.

Department of Housing and Urban Development (HUD). Fiscal Year 2025-26 revenue is projected to be $612,781 and will support operations, community grants and capital projects.

Annual Operating Budget 1 19

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

Fund 340 — Facilities: Projected expenses total $1,645,947, which provide for the operations and maintenance of the City's buildings and parking structure. The projected fund balance is $92,364.

Ending fund balance for TCSD is projected to be $4,849,853 for Fiscal Year 2025-26.

Annual Operating Budget 1 21

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

Capital projects are categorized into five Project Types, as noted in the adjacent table. 22 1 Annual Operating Budget

Summary of Operating & Maintenance Impacts
Maintenance and Operations of
PW17-01/711
- CITY SECURITY CAMERA SYSTEM
Security Camera System
300,000
300,000
300,000
300,000
300,000
FN19-01/724 -

CITYWIDE FINANCIAL SYSTEM

UPGRADE
Annual Software Maintenance
86,000
86,000
86,000
86,000
86,000

ACQUISITION
& LIGHT EMITTING DIODE (LED)

RETROFIT
Electricity Savings
(695,286)
(709,475)
(723,665)
(738,138)
(752,901)
PW21-09/683
- ELECTRIC VEHICLES CHARGING

STATION
Electric Charging Vehicles Fees
(3,100)
(3,100)
(3,100)
(3,100)
(3,100)
PW17-19/690
-1-15/STATE ROUTE 79 SOUTH

SOUND SYSTEM
Sound System
75,000
75,000
75,000
75,000
75,000
PWPE07-03/PW23-18- LONG CANYON CREEK PARK

RESTROOMS
Janitorial Services
29,866
30,475
31,085
31,706
32,340
PWPE-07/155 - PARK RESTROOMS RENOVATIONS,

Annual Operating Budget 1 23

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

City of Temecula
History of Authorized Positions
2so.00
200.00
iso.00
10100

Sincerely,
0,6 — ol,_
AarAdams
City Manager
24 1 Annual Operating Budget

1 1, raj zRbri 1
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Annual Operating Budget 1 25

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DIRECTORY
EXECUTIVE MANAGEMENT:

City Manager................................................................................................... Aaron Adams City Attorney............................................................................................. Peter M. Thorson Assistant City Manager..................................................................................Kevin Hawkins Deputy City Manager....................................................................................... Luke Watson Director of Legislative Affairs/City Clerk............................................................... Ran di Johl Director of Finance.................................................................................. Jennifer Hennessy Director of Public Works/City Engineer............................................................ Ron Moreno Director of Community Development............................................................... Matt Peters Director of Community Services......................................................................... Erica Russo Director of Information Technology and Support Services ...........................Michael Heslin
Director of Human Resources/Risk Management ..........................................

Isaac Garibay
Captain/Temecula Police Chief...........................................................................Mark Rigali
Division Chief/Temecula Fire Chief.....................................................................John Crater
Assistant to the City Manager.........................................................................

Betsy Lowrey
CITY OF TEMECULA BUDGET TEAM:

Director of Finance......................................................................................Jennifer Hennessy
Assistant Finance Director..................................................................................

Ward Komers
Fiscal Services Manager...................................................................................... Paula Majors Management Analyst...........................................................................................Catlin Dorset 26 1 Annual Operating Budget

L',
!
Temecula Citizens
Zak Schwank
Jessica Alexander
Brandon Kalfus
Council Member
Mayor Pro Tern
Mayor
District 5
District 2
District 3
Betsy Lowrey
Assistant to the Aaron Adams
city Manager City Manager
Kevin Hawkins Luke Watson
Assistant City Deputy
Manager City Manager
T
Matt Rahn
Council Member
District 1
Peter Thorson
City Attorney
James Stewart
Council Member
District 4
1K
L 14
Isaac GariTRIsknfomatlon
hael Heslin Erica Russo Ron Moreno Matt Peters Jennifer Hennessy Randi Johl Mark Rigali John Crater Director ri HuDirector of Director of Director of Public Director of Community Director of Director of Legislative Captain/Temecula Division Chiefl Resources and Systems Community Services WorkslCity Engineer Development Finance Affairs/City Clerk Police Chief' Temecula Fire Chief• Manageme

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

MISSION STATEMENT
The mission of the City of Temecula is to maintain a safe, secure, clean, healthy, and orderly community; to balance the utilization of open space, parks, trail facilities, quality jobs, public transportation, diverse housing, and adequate infrastructure; and to enhance and revitalize historic areas.

The City will encourage programs for all age groups, utilize its human resources, and preserve its natural resources while stimulating technology, promoting commerce, and utilizing sound fiscal policy.

It is the City Council's resolve that this mission will instill a sense of pride and accomplishment in its citizens and that the City will be known as a progressive, innovative, balanced, and environmentally sensitive community.

VALUE STATEMENT
TTEAMWORK among all employees
EENHANCEMENT of the work environment through open lines of communication MMUTUAL respect of others
EEDUCATION of employees and citizens about the operations and accomplishments of the City CCUSTOMER service is our most important product
UUNLIMITED potential for continued personal growth and organizational development LLEADERSHIP in local government
AASSUMING 100% responsibility for projects and assignments 28 1 Annual Operating Budget

City of Temecula
��_ Fiscal Year 2025-26
Annual Operating Budget

CITYWIDE LONG-TERM GOALS
CORE VALUES: The Quality of Life Master Plan (QLMP) provides the framework for the City's�°9 A
Strategic Budgeting activities. The City Council has set priorities and guided staff in developing seven (7) core values upon which to focus time and resources (as identified in the QLMP). These Q MP areas include:Q�`�

RSTER C
Safe & Prepared Community
Remain one of the safest cities in California and the nation. Ensure funding for public safety remains the highest priority. Maintain a ratio of one police officer per 1,000 population. Support community D
oriented policing and maximize community leadership in public safety. Achieve a City ISO rating of

1.0. Maintain a five minute or less response time for fire protection. Minimize impact to life, property and the environment from natural hazards and emergency situations. Provide recreational and other activities for youth. Provide effective enforcement of City zoning, building, fire and grading codes, and graffiti abatement. Continue to provide public information and training surrounding emergency management and public safety.

Transportation Mobility & Connectivity
Maintain and improve our roadway network. Promote job growth in Temecula and nearby areas.

Market the opportunities to work and shop locally. Expand and enhance the transportation network.

Establish a connected pedestrian, bicycle and equestrian transportation system. Coordinate land use and transportation to create a balanced, modern and integrated transportation system. Increase transportation and mobility options. Develop a Complete Streets Policy document. Additional public Electric Vehicle (EV) charging stations.

Healthy & Livable City
Support healthy and active lifestyles. Be a sustainable community that embraces residents' quality of life. Be a diverse community that values and supports people of all ages, backgrounds, cultures, disabilities and religious beliefs. Provide accessible sports, recreational, cultural, health/therapeutic and community engagement facilities, programs and resources for all Temecula residents. Enhance Temecula's position as a regional medical center of excellence. Value the growth of non-profit organizations, churches, temples, mosques, and other places of worship. Continue to be a community where local history is remembered and respected, and local culture and artistic creativity is supported.

Annual Operating Budget 1 29

CITYWIDE LONG-TERM GOALS
Economic Prosperity
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Provide an entrepreneurial culture that offers a growing number of diverse high -paying jobs.

Encourage the broadening of higher education opportunities both public and private. Foster an integrated Career Technical Education (CTE) system that builds on curricula offered through Temecula Valley Unified School District, Mt. San Jacinto College and the CSU San Marcos campus at Temecula. Continue to protect the City's special natural resources.

Sustainable & Resilient City
Be the most sustainable city in Southern California. Ensure safe and sufficient water supplies for the 21st century. Work to maintain the City's high level of air quality possible in Temecula. Develop community resiliency in infrastructure, the economy, natural resources, and hazard mitigation.

Adopt a Climate Action Plan (CAP) as part of the General Plan update and Environmental Impact Report (EIR).

Accountable & Responsive City Government
Equity
Provide consistently professional services and information to customers and constituents. Promote innovation and adopt technology that enhances access to information and data. Maintain a flexible organization which responds to the changing needs and priorities of the community. Provide the highest quality of service at the most cost-effective rate while being fiscally responsible. Ensure transparency in all aspects of City government.

Support the fair and equitable treatment of all human beings in a just society. Foster a healthy environment and prosperous opportunities for all residents of Temecula. Exhaust all methods of communication and outreach between the City and its residents. Monitor the City's budget and resource allocation to close inequity gaps to ensure that the City's programs, services, educational pathways and infrastructure meet the needs of diverse communities.

SHORT TERM OBJECTIVES: In order to ensure meaningful financial priorities, each department develops Short Term Objectives rooted in the Citywide Long -Term Goals and the Core Values. Each Short -Term Objective is a department's incremental step toward achieving the overall Citywide Long -Term Goals.

Within the Departmental Information Section of this budget, each Department provides their Short -Term Objectives for the ensuing fiscal year.
30 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Temecula for its annual budget for the fiscal year beginning July 1, 2024.

To receive this award, a governmental unit must publish a budget document that meets programs criteria such as policy document, operations guide, financial plan, and communication device. The award is valid for a period of one year only, and the City of Temecula has received this award every year since 2001. We believe our current budget continues to conform to program requirements and we are submitting it to GFOA to determine its eligibility for another award.

In addition to the Distinguished Budget Presentation Award, the City of Temecula also received an award of Special Recognition for the City's Long -Range Financial Plans. This award is earned when all three budget reviewers give the highest possible score in particular categories.

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Bucdget Presentation
Award

PRESENTED TO
City of Temecula
California
For the Fiscal Year Beeiaulm' g
Jnly 01, 2024
OJV4.��t- P- Araw
Executive Director
Annual Operating Budget 1 31

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS AWARD
The California Society of Municipal Finance Officers (CSMFO) recognizes those entities with highly professional budget documents with two levels of certificates. The first level is the "Meritorious Budget Award," which requires the entity to meet a very specific list of criteria defined by CSMFO. The second level is the "Operating Budget Excellence Award," which requires that the organization meet even higher criteria which effectively enhances the usability of the document.

In preparing the ensuing Fiscal Year budget, staff has once again followed CSMFO's criteria. This document will be submitted to the CSMFO for the Fiscal Year 2025-26 budget award program.

California Society of Municipal
Finance Officers
Certificate ofrlward
Operating Budget Excellence Award
Fiscal Year 2024-2025
Presented to the
City of Temecula
For meeting the criteria established to achieve a CSMFO Award in Budgeting.

February 7, 2025
�4!LGQ.

Ernie Repna
2024 CSMFO President
.lames Russell -Field, Chair
Recognition Committee
Dedicated to Excellence in _Municipal Financial Reporting 32 1 Annual Operating Budget

CITY OF TEMECULA AT A GLANCE
Median Housing Values
April 2025: $771,000
April 2024: $785,000
15t" Safest
City in
Riverside
County
Forbes, Feb. 28, 2024
Population
2025: 112,220
2024: 108,700
Median Age ,1.5
Number of Jobs 54,400
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
r Fiscal Highlights
av
Avg. Household Income $145,129
Top 20%
TVUSD Test Scores rank
in the top 20% of all
public schools in-==--
California
General Fund
Operating Revenue: $113,978,529
Operating Expenditures: $106,722,837
Fund Balance: $35,523,245
Capital Improvement Program
$894,070,582 4
97 Projects
42 # of Parks
325 Miles of Streets
0 4.6% 117
71,481 202.20
Education
TK-12 Schools: 29
Students: 26,668
Teachers: 1,357
Q14lity oft e
01 m v t e e
Tnlernsh/p o Qore��G�sh� J ��
o e o0
p,00/?U, .i ' ' 0 ��` ati�osQt
Recr es A�
eation/Classes - an �ea9Ues
Family Friendly Human Services
79 Fire Personnel
39%
Percentage of
residents with a 4-year
College Degree

8.75%
Local Economy
Sales Tax Rate
Annual Sales Tax Revenue (2024)

2.4 million
Promenade Mall Area = $9.2M
Visitors Per Year
Motor Car Parkway = $8.OM
(2021)
Business Park = $5.7M
Temecula Pkwy = $5.3M 40
Regional Shopping = $11.1 M
Old Town Temecula = $1.OM
General Law City City Motto:

Council -Manager Form. of Government "Old Traditions,
Incorporated December 1, 1989 New Opportunities"
Annual Operating Budget 1 33

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
34 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

UNDERSTANDING THE BUDGET DOCUMENT
This budget document provides the public with concise and readable information about City government, and displays the objectives and budget of the City of Temecula for the Fiscal Year 2025-26. The budget document is divided into the following sections:

INTRODUCTION
The budget document begins with the transmittal letter by the City Manager, which provides an overview of the Fiscal Year 2025-26 Operating Budget by highlighting programs, major projects and changes in revenue and expenditure allocations for the upcoming fiscal year. There is an analysis of the impact of legislation on the City budget, as well as recent economic indicators. The introduction section details Temecula's Mission and Value Statements. The Long -Term Goals and Objectives provide further detail into the policies and the goals and objectives which drive the budget process. These are linked to each Department's long-term goals and objectives. The City Directory outlines the Executive Management and Budget Team staff members who work on a daily basis implementing the goals and strategies outlined in the Annual Operating Budget. The Citywide Organization Chart displays City Departments and reporting structure. This section also includes copies of budget awards for the previous fiscal year budgets.

GUIDE TO THE BUDGET DOCUMENT
In addition to this document, the Guide to the Budget Document section contains the Budgetary Fund Structure, which provides a quick graphic overview of the City's budgetary fund structure and includes all funds that are subject to appropriation. The Description of Funds provides a narrative description of these funds which are graphically depicted in the Fund Use by Department section. The Summary of Accounting Principles explains the basis of accounting or all appropriated funds. The Budget Process and Budget Calendar describe the City's process for preparing this year's Annual Operating Budget.

FIVE YEAR FORECAST
This section outlines the City of Temecula's five-year strategic planning tool which allows the City to project the impacts of proposed programs, operating costs, and capital improvement projects in the future. This forecast assists in long range planning and policy development by ensuring that resources will be available to meet the needs of our community into the future.

FINANCIAL SUMMARIES
The Financial Summaries section provides a complete overview and analysis of the total resources budgeted by the organization. There is detail on each specific fund, fund balance changes, and a complete budget picture for the current and previous two fiscal years. This section includes summaries of revenues and expenditures for all appropriated Operating Budget funds. Fund balance, revenue and expenditure changes are explained in this section as well. Historical and categorical data are provided for comparative purposes.

Annual Operating Budget 1 35

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

UNDERSTANDING THE BUDGET DOCUMENT

PERFORMANCE MEASURES
The Performance Measures section includes the listing of each department's performance measures used in the development of the programs, activities and objectives for each department. The performance measures align with the City's seven Core Values identified in the Temecula 2040 Quality of Life Master Plan (QLMP) and the strategic goals established for each Core Value.

DEPARTMENTAL INFORMATION
The Department Information section includes the department/program description, mission statements, and quantifiable short-term objectives and performance measures for each operating program in the General Fund, Temecula Community Services District, and Internal Service Funds. Budget information is organized by department and/or cost center and a short narrative is provided which analyzes expenditure changes from the previous year.

CAPITAL IMPROVEMENT PROGRAM
This section summarizes the budgeted capital expenditures which are further detailed in the separate Capital Improvement Budget. This section provides a summary of all projected Capital Improvement revenues and descriptions of those sources, as well as a description of all Capital Improvement Program projects. This section also includes forecasts of operating costs associated with Capital Improvement projects which have been included as part of the operating budget.

BUDGET AND FISCAL POLICIES
The General Financial policies outline the City's policies related to budget preparation, staffing, debt management, fund/district purposes and financial reporting requirements.

APPENDIX
This section provides supplemental financial statistical information such as, property tax information, and comparative City information. There is also a glossary of acronyms and terms to guide the reviewer in understanding this document.

Additional information on the City's fiscal affairs is available on the City's website:

TemeculaCA.gov/FinancialReports
Quarterly Financial Statements
❖ Annual Comprehensive Financial Reports
❖ Cities Financial Transactions Reports
For further information, please contact the Temecula Finance Department at (951) 694-6430. 36 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

BUDGETARY FUND STRUCTURE

I GOVERNMENTAL FUNDS

GENERAL FUNDS
• General (Fund 001)*
• Measure S (Fund 002)*
• Fire Facility Acquisition (Fund 006)*
• Community Reinvestment Program (Fund 110)*

SPECIAL REVENUE FUNDS
• Gas Tax (Fund 100)
• Road Maintenance Rehabilitation Account (RMRA) (Fund 102) • Street Maintenance (Fund 103)
• NPDES In Lieu Fees (Fund 105)
• Uptown Temecula New Streets In -Lieu Fees (Fund 106)
• Development Impact Fees (DIF) (Fund 120)
• Public, Education & Government (PEG) Fees (Fund 125)
• Community Development Block Grant (Fund 140)
• Temecula Energy Efficiency Asset Management (Fund 145) • AB 2766 Motor Vehicle Subvention (Fund 150)
• Supplemental Law Enforcement Services (Fund 160)
• Temecula Major Crimes Reward Fund (Fund 161)
• Affordable Housing (Fund 165)*
• Measure A (Fund 170)*
• Public Art (Fund 198)*

TEMECULA COMMUNITY SERVICES (TCSD) FUNDS
• Parks and Recreation Citywide Operations (Fund 190)*
• Service Level B — Streetlight Replacement (Fund 191)* • Service Level B - Street Lighting (Fund 192)*
• Service Level D - Refuse and Recycling (Fund 194)*
• Service Level R - Street/Road Maintenance (Fund 195)* • Service Level L - Harveston Lake Park Maintenance (Fund 196)* • Service Level C - Landscape/Slope Maintenance (Fund 501-530)* • Library (Fund 197)*
Annual Operating Budget 1 37

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

BUDGETARY FUND STRUCTURE

IGOVERNMENTAL FUNDS

CAPITAL PROJECTS FUNDS
• Capital Improvement Fund (Fund 210)*^
• Community Facilities District Funds (Fund 273-278)*"

I PROPRIETARY FUNDS

INTERNAL SERVICES FUNDS
• Insurance (Fund 300)
• Workers' Compensation (Fund 305)
• Vehicle and Equipment (Fund 310)
• Information Technology (Fund 320)
• Technology Replacement (Fund 325)
• Support Services (Fund 330)
• Support Services Replacement (Fund 335)
• Facilities (Fund 340)
• Facilities Replacement (Fund 350)

I FIDUCIARY FUNDS
PRIVATE — PURPOSE TRUST FUNDS
• Successor Agency to the Redevelopment Agency (SARDA)
Debt Service (Fund 380)
*Denotes the City's Major Funds
^Denotes funds which are subject to appropriation and included in audited financial statements, but are summarized and adopted separately and/or as part of the Capital Improvement Program budget. 38 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DESCRIPTION OF FUNDS
The City of Temecula revenues and expenditures are accounted for in a series of funds. Each fund is an autonomous accounting entity, established in accordance with legal and professional accounting standards. Funds are used to segregate the various financial activities of a governmental entity and to demonstrate compliance with specific regulations, restrictions or limitations, (i.e., demonstrating that restricted revenues are spent only for allowed purposes).

Funds used in government are classified into three broad categories: governmental, proprietary and fiduciary.

Governmental funds include activities usually associated with the operations of a typical state or local government (public safety, general government activities, etc.). Proprietary funds are used in government to account for activities often found in the private sector (utilities, stadiums, and golf courses are prime examples). Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent.

The appropriated funds utilized by the City of Temecula, governmental, fiduciary, and proprietary, are detailed below. The City of Temecula details the Capital Improvement Funds in a separate document, although the Capital Improvement program and its operating impacts are outlined in this budget document in the Capital Improvement Program section.

BASIS OF BUDGETING
All governmental funds are accounted for and budgeted using the modified accrual basis of accounting. Their revenues are recognized when they become "measurable" and "available." Revenues are considered measurable when they are reasonably estimable. Revenues are considered available when they will be collected either during the current period or 60 days after the end of the period to pay current year liabilities. The primary revenue sources susceptible to accrual are property and sales taxes, franchise fees, transient occupancy taxes, investment income, fines and forfeitures collected by County courts, and motor vehicle -in -lieu subventions. The basis of budgeting is the same as the basis of accounting used in the City's Annual Comprehensive Financial Report (ACFR).

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest due on general long-term debt which is recognized when due.

Proprietary and Fiduciary funds are accounted for and budgeted using the full accrual basis of accounting, i.e., revenues are recognized in the period earned and expenses are recognized in the period incurred.

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded to reserve that portion of the applicable appropriation, is employed in the governmental funds.

Outstanding encumbrances committed to current -year encumbrances at the end of the fiscal year are recorded as reservation of fund balance since the commitments will be paid in the subsequent year. Encumbrances do not constitute expenditures or liabilities.

Annual Operating Budget 1 39

DESCRIPTION OF FUNDS

GOVERNMENTAL FUNDS
General Funds:

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
General Funds are used to account for most governmental functions and focus on the near -term inflows and outflows of spendable resources.

General Fund (001)* - This is the general operating fund for the City, utilized to account for all resources not required to be accounted for in another fund.

Measure S Fund (002)* - This fund is used to track the uses of the one -cent Transactions Use Tax, known as Measure S, approved by Temecula voters on November 8, 2016. This revenue source is discretionary and is to be used in accordance with the Council's Appropriation Guidelines, noted in the City's Budget and Fiscal Policies.

Fire Facility Acquisition Fund (006)* — This fund is used to accumulate the necessary funds to acquire property for a future Fire Station, construct a future Fire Station, and/or renovate existing Fire Stations.

Community Reinvestment Program (110)* — This fund was established to provide various community grants to support the local economy in its recover from the COVID-19 global pandemic.

Special Revenue Funds:

Special Revenue Funds are used to account for specific resources that are legally restricted to expenditure for particular purposes.

Gas Tax Fund (100) — The City maintains this fund to account for the Highway User's Tax revenues received from the State of California under Sections 2013, 2105, 2107, and 2107.5 of the Streets and Highways Code.

Road Maintenance Rehabilitation Account (RMRA) Fund (102) — This fund is to account for gasoline and vehicle taxes pursuant to the Road Repair and Accountability Act of 2017 (SB1 Beall). Monies are collected by the State of California and allocated to local agencies for streets and roads projects and other transportation uses.

Street Maintenance Fund (103) — This fund was established to accumulate resources for the future replacement of streets and roads throughout the City.

NPDES In Lieu Fees Fund (105) — This fund was established to account for the collection of fees to fund, or partially fund, alternative compliance projects in -lieu of meeting certain requirements of the National Pollutant Discharge Elimination System (NPDES) Permit onsite.

Uptown Temecula new Streets In -Lieu Fees (106) — This fund was established in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In -Lieu Fee. The Specific Plan requires developers to dedicate right-of-way and construct new street improvements adjacent to or through their development sites. Developers within the Specific Plan who cannot contribute right-of-way and/or build new streets will be charged a new streets in -lieu fee. 40 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DESCRIPTION OF FUNDS
Development Impact Fees Fund (120) — Used to account for activity generated and funded by development applications to offset the effect of development. Mitigation projects include infrastructure, fire protection, public facilities and services, libraries, roads, schools, parks, traffic signal mitigation and open space. This fund is appropriated through the Capital Improvement Program budget.

Public, Education & Government (PEG) Fees Fund (125) — Public Education and Government Access programming is supported by the PEG fee that is assessed to each cable subscriber. According to state law, these funds must be used only for the production of PEG Access programming.

Community Development Block Grant (CDBG) Fund (140) — This fund is used to account for grants received from the U.S. Department of Housing and Urban Development (HUD). The grants are used for the redevelopment of a viable community by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of Temecula Energy Efficiency Asset Management (TEEM) Fund (145) — This fund was created to capture energy efficiency rebates and reimbursements as well as expenditure savings resulting from energy efficiency projects completed at various City facilities.

AB 2766 Motor Vehicle Subvention Fund (150) — This fund is used to account for State funds that are used to implement programs and projects that reduce air pollution from motor vehicles. This fund is used for Capital projects and to account for operational costs such as the Natural Gas operated Harveston Trolley, which provides free transportation within the Temecula business district.

Supplemental Law Enforcement Services Fund (160) — The City maintains this fund to account for the Supplemental Law Enforcement Services (SLESF) monies which are exclusively expended to provide front line law enforcement services provided by the State of California. These monies supplement existing services and are unable to be used to supplant any existing funding for law enforcement services provided by the City.

Affordable Housing Fund (165)* — The Affordable Housing fund contains the assets as well as loan and rental income from the former Redevelopment Agency which have been transferred to the City of Temecula.

Measure A Fund (170)* — This fund was established to account for the City's share of the County of Riverside's additional one-half percent sales tax allocation. These monies are restricted for use on local streets and roads. Measure A was approved by the Riverside County voters originally in 1988 and was extended in 2002. The funds are administered by the Riverside County Transportation Commission (RCTC) and will continue to fund transportation improvements through 2039.

Public Art Fund (198)* — This fund was established pursuant to Temecula Municipal Code Section

5.08.040, whereby the fund serves as a depository for the fees paid in lieu of art as well as monetary donations for public art. The Public Art In Lieu fee is one -tenth of one percent of an eligible development project in excess of $100,000. Eligible uses of this fund include the design, acquisition, installation, improvement, maintenance and insurance of public artwork; offering of performing arts programs on City property for the community; and art education programs on City property for the community.

Annual Operating Budget 1 41

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DESCRIPTION OF FUNDS
Temecula Community Services District (TCSD) Funds (190-198, 501-530)*:

Upon incorporation of the City of Temecula, effective December 1, 1989, voters approved the formation of the Temecula Community Services District (TCSD) to provide specified services to properties within its jurisdiction. TCSD is a separate legal entity than the City and operates under the authority of Community Services District Law. Benefit assessments, and a special tax (Measure C) are charged to property owners within the District, are received to provide specified services identified below:
❖ Parks and Recreation - Facility operations and maintenance, community recreation programs ❖ Service Level "B" - Streetlight Replacement
❖ Service Level "B" - Residential streetlights
❖ Service Level "C" - Perimeter landscaping and slope maintenance ❖ Service Level "D" - Refuse collection, recycling, and street sweeping ❖ Service Level "R" - Street and road maintenance
❖ Service Level "L" - Harveston Lake Park maintenance
❖ Library Fund - Services at the Ronald H. Roberts Temecula Public Library on Pauba Road Capital Projects Funds:

Capital Projects funds are used to account for the acquisition and/or construction of major capital assets.

Capital Improvement Fund (210)* — This fund was established to account for the City's Capital Improvement Program revenues and expenditures.

PROPRIETARY FUNDS
Internal Service Funds:

Internal Services Funds are used to account for the financing of goods or services by one department to other departments of the City on a cost reimbursement basis.

Insurance (300) - This fund was established to fund and account for the City's liability and property insurance costs.

Workers' Compensation (305) - This fund was established to accumulate resources for Workers' Compensation liabilities.

Vehicles and Equipment (310) - This fund was established to accumulate resources for the purchase of future replacement vehicles and equipment.

Information Technology (320) - This fund was established to account for the City's Information Technology activities.

Technology Replacement (325) - This fund was established to account for computer, software and telephone equipment and to accumulate resources for replacement of this equipment.

Support Services (330) - This fund was established as a cost center for the City's central duplicating, printing, and mailing activities.

Support Services Replacement (335) - This fund was established to account for the City's copy and duplicating equipment and to accumulate resources for replacement of this equipment. 42 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DESCRIPTION OF FUNDS
Facilities (340) - This fund was established to account for the cost of the Civic Center, Business Incubator, City Maintenance Facility, and Civic Center Parking Structure operations and maintenance.

Facilities Replacement Fund (350) - This fund was established to accumulate resources for the future replacement of equipment, systems and fixtures within City -owned facilities.

FIDUCIARY FUNDS
Private -Purpose Trust Funds:

Private -Purpose Trust Funds are used to account for resources held and administered by the reporting government when it is acting in a fiduciary capacity for other governments.

Successor Agency to the Redevelopment Agency (SARDA) Debt Service Fund (380) — This fund is used to account for payment obligations of the successor agency as a result of the State's dissolution of Redevelopment Agencies.
*Denotes the City's Major Funds
Annual Operating Budget 1 43

FUNDS AND DEPARTMENTS
City of Temecula
City Funds
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
001 General*
165 Affordable Housing*
002 Measure S*
170 Measure A*
006 Fire Facility Acquisition*
198 Public Art*
100 Gas Tax
210 Capital Improvement Program*
102 Road Maintenance Rehabilitation Act (RMRA)
300 Insurance
103 Street Maintenance Fund
305 Workers' Compensation
105 NPDES In Lieu Fees
310 Vehicles and Equipment
106 Uptown Temecula New Streets In Lieu Fees
320 Information Technology
110 Community Reinvestment Program*
325 Technology Replacement
120 Development Impact Fees
330 Support Services
125 Public, Education & Government (PEG)
335 Support Services Replacement
140 Community Development Block Grant (CDBG)
340 Facilities
145 Temecula Energy Efficiency Asset Management
350 Facilities Replacement
150 AB 2766 Motor Vehicle Subvention
380 SARDA Debt Service
160 Supplemental Law Enforcement Services
General Fund Departments
001.100 City Council
001.162 Building & Safety
001.101 Community Support
001.163 Land Development
001.110 City Manager
001.164 Public Works
001.111 Office of Public Information & Economic Development 001.165 CIP Public Works
001.115 Emergency Management
001.167 Parks Maintenance
001.120 City Clerk
001.170 Temecula Sheriff's Office
001.130 City Attorney
001.171 Fire
001.140 Finance
001.172 Animal Control
001.150 Human Resources
001.199 Non -Departmental
001.161 Planning
*Denotes the City's Major Funds
44 1 Annual Operating Budget

FUNDS AND DEPARTMENTS
Temecula Community Services District (TCSD)
TCSD Funds
190 TCSD Citywide Operations*
191 Service Level B — Streetlight Replacement*
192 Service Level B — Street Lighting*
194 Service Level D — Refuse and Recycling*
TCSD Departments
190.180.164
General Maintenance
190.180.999
General Operations
190.181.999
Human Services Operations
190.182.999
Community Recreation Center Operations
190.183.999
Special Events Operations
190.184.999
Temecula Community Center Operations
190.185.999
Museum and Cultural Arts Operations
*Denotes the City's Major Funds
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
195 Service Level R — Emergency Road Maintenance*
196 Service Level L— Harveston Lake Park Maintenance*
197 Library*
501-530 Service Level C—Landscape/Slope Maintenance*
190.186.999
Aquatics Operations
190.187.999
Sports Operations
190.189.999
Community Theater Operations
190.197.999
Contract Classes Operations
190.201.999
Homeless Outreach and Prevention Operations
190.202.999
Workforce Development
Annual Operating Budget 1 45

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FUNDING SOURCES BY DEPARTMENT
City Funds
Government
Major Fum
General
Development
Services
Services
Works
Safety
Fund 001: General Fund
✓
✓
✓
✓
✓
Fund 002: Measure S Fund
✓
✓
✓
✓
✓
Fund 006: Fire Facility Acquisition
✓
✓
Fund 165: Affordable Housing
✓
Fund 170: Measure A
✓
Fund 190: Temecula Community Svcs -Citywide Operations
✓
✓
✓
✓
Fund 191: Service Level B - Streetlight Replacement
✓
✓
Fund 192: Service Level B - Street Lighting
✓
✓
Fund 194: Service Level D - Refuse and Recycling
✓
Fund 195: Service Level R - Road Maintenance
✓
✓
Fund 196: Service Level L - Harveston Lake Park Maint.
✓
✓
Fund 197: Library
✓
✓
Fund 198: Public Art
✓
✓
✓
Funds 501-530: Service Level C - Landscape/Slope Maint. ✓
✓
Fund 210: Capital Improvement Program
✓
✓
✓
✓
✓
Fund 100: Gas Tax
✓
✓
Fund 102: Road Maintenance Rehab. Account (RMRA)
✓
✓
Fund 103: Street Maintenance
✓
✓
Fund 105: NPDES In Lieu Fees
✓
✓
Fund 106: Uptown Temecula New Streets In Lieu Fees
✓
✓
Fund 120: Development Impact Fees (DIF)
✓
✓
Fund 125: Public, Education & Government (PEG) Fees
✓
Fund 140: Community Development Block Grant
✓
✓
✓
Fund 145: Temecula Energy Efficiency Asset Mgmt
✓
✓
Fund 150: AB 2766 Motor Vehicle Subvention
✓
✓
Fund 160: Supplemental Law Enforcement Services
✓
Fund 380: Debt Service
✓
✓
Fund 300:Insurance
✓
✓
✓
✓
✓
Fund 305: Workers' Compensation
✓
✓
✓
✓
✓
Fund 310: Vehicles and Equipment
✓
✓
✓
✓
✓
Fund 320: Information Technology
✓
✓
✓
✓
✓
Fund 325: Technology Replacement
✓
✓
✓
✓
✓
Fund 330: Support Services
✓
✓
✓
✓
✓
Fund 335: Support Services Replacement
✓
✓
✓
✓
✓
Fund 340: Facilities
✓
✓
✓
✓
✓
Fund 350: Facilities Replacement
✓
✓
✓
✓
✓
46 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

BUDGET PROCESS
The annual budget process begins in February of each year. The budget team, which includes the City Manager, Finance Director, Assistant Finance Director, Fiscal Services Manager and Management Analyst, reviews the fiscal policies and procedures and prepares five-year projections for the General Fund, Measure S Fund and Temecula Community Services District. The budget team uses these projections to develop spending priorities and department expenditure targets for the upcoming fiscal year.

In February, a Budget Kickoff Workshop is held with the City Manager, Department Directors, and Department Analysts. This workshop includes a briefing on the status of the current fiscal year budget, a review of the budget process calendar, the impacts of the current economic conditions, and a discussion of elements of the budget process. The budget preparation guidelines and department targets used in preparing department budget requests are distributed. Additionally in February, the City Council discusses the Budget Policies and Priorities and provides the budget team with any changes they wish to have reflected in the ensuing fiscal year.

In late February and March, Finance holds Budget Engagement Sessions with each of the City's Boards and Commissions. Obtaining feedback from the commissions earlier on in the budget process allows staff to incorporate community and commission input and confirm budgetary priorities.

Preparation of budget requests includes comparative analysis of historic and current expenditure levels. Department revenue estimates are compiled from projections of activity for the upcoming fiscal year. The Executive Team, which consists of Department Directors and the City Manager, meets shortly after requests are submitted to outline and prioritize requests. This includes a review of the following:
❖ Expenditure requests above the established department target; ❖ Requests for new equipment (greater than $5,000) or vehicles; ❖ Requests for information technology;
❖ Personnel requests, including temporary personnel, and any proposed reclassifications.

Several tools are utilized to determine and reinforce budget priorities and guide appropriation recommendations, as diagrammed below.

Community
Satisfaction
Survey
Board &
Commissions
Feedback
Prior -Year
Carryover to
complete projects
Program &
Services
Master Plans
City Council
Policies
Annual Operating Budget 1 47

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

BUDGET PROCESS
During March and April, the budget team holds meetings with each department to discuss their budget requests and to obtain additional information to assist in the resolution of the requests. Following this review, department staff performs a final adjustment to their line item submissions and develops an internal Preliminary Budget to review with the City Manager.

In May, a public City Council budget workshop is held `- --- - - comment and to review the components of the
Budget and any modifications to fiscal policies, pi
formal consideration for adoption. Any changes ba
on this review are incorporated prior to adoption
the following City Council meeting, which typically
occurs in early June.

All appropriations lapse at year-end, except for
those relating to grants and encumbrances
approved for carryover to the following fiscal year.

The City Council has the legal authority to amend
the budget at any time during the fiscal year.

Budgetary controls are maintained to ensure
compliance with the budget as approved by the City
Council. Adjustments between departments
requests for additional funding require the approvi
the City Council. As referenced in the Budget Resi
the City Manager has the authority to make chan,
departmental budgets. The level of budgetary contrui tmai is, the level at which expenditures cannot legally exceed the appropriated amount) is at the department level.

The City has a formalized midyear budget review process which is used to update the appropriations and revenue projections halfway through the fiscal year. The City begins this process in December by analyzing revenue projections, service contracts, new City Council priorities, and the impacts of legislation from the State and Federal Government. This information is compiled into an updated five-year projection. In early January, departments review their individual budgets to identify any savings or to request additional funds to meet the needs of new programs or spending priorities. The result is a final balanced budget document that ensures that sufficient funding is available to meet the updated objectives and priorities for the remainder of the fiscal year. This document is taken to the City Council for adoption in February.
48 1 Annual Operating Budget

Process begins with
analysis of prior year
activity and update of
five-year projections
y Manager and Budget Team
meet with departments to
further refine requests
Public City Council workshop
presentation to outline budget
requests and policy
recommendations to City Council
and the community
Does Council
have any
changes?
F' Meeting with City Manager, I
Finance Director and Budget Team
to review prior year performance
and identify upcoming budget
L goals
Budget Requests, Revenues,
Goals, Performance Measures,
and Policies are all adopted at one
City Council meeting ,
Final published budget document
distributed and posted on City
website
City Manager and Executive q
Team review requests and set
. priorities for spending ,
Departments review NPV14
and adjust budgets Adjustment
throughout the year Jwkh� -A
Update calendar,
ity Council determines standard forms and
budget priorities and
procedures, calculate
ii
budget targetskoff Meeting with Review City financial
epartment Heads policies, recommend
and Analysts changes
Create detailed
expenditure and revenue
projections
Compile citywide budget
requests and revenues for
budget
City Manager approval
City Council approval
I Meet with department staff to
develop annual objectives based on
L Citywide long-term goals A

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

BUDGET ENGAGEMENT SESSIONS
The City of Temecula remains committed to transparent and thoughtful financial planning that reflects community priorities. As part of the Fiscal Year 2025-2026 budget engagement process, an interactive survey was conducted with each of the City's five commissions —Community Services, Planning, Traffic Safety, Old Town Local Advisory, and Race, Equity, Diversity, and Inclusion (REDI). These sessions gave Commissioners the opportunity to review draft survey questions and provide input on emerging priorities for the City's operational and capital planning. The results of the budget engagement sessions are summarized in the following infographic.

OHow would you rate the overall quality of life in Are you satisfied or dissatisfied with the job the City Temecula? © is doing to provide services?
0% 25% 50% 75% 100% 0% 25% 50% 75% 100%
Fxcsll—t Very
Satisfied
Good
Fair
Poor
Very Poor
Somewhat
Satisfied
Somewhat
Dissatisfied
Very
Dissatisfied
.................................................................................................................................................... ©What are the names of the one or two stores you Are you satisfied or dissatisfied with the City's would most like to have located in the City of 0 efforts to improve traffic circulation? Temecula?
0% 26% sox 9tG mtk5t
Very
satisfied Ma
Somewhat
11 4 Satisfied
Somewhat
1 KEA Dissatisfied
AREI
very 4 3 Dissatisfied
©What are the one or two things that you like most t 0 What are the one or two things that you like least about living in the City of Temecula? about living in the City of Temecula? ^ Homelessness /`
City parks 6 EventaP suRn
`------------------------
Traffic
Restaurants 5 Safety 8
-� 25
------------------------------------------------------------------------------------------------------------------.----.----...-------------------- OIf you could attend one signature event each year,
which would you attend?��I;i�
0% 36% 50% 76% 100%
Chnst-Parade
4th ai July Fireworks '• •
ath of July Parade
NYE G,o Pe D,.p
E
Rad Run flat
i
50 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
il!Z44111141-M L71110
FISCAL YEAR 2025-26
Date
Item
Responsible Department
2/1/25
Update General Fund and TCSD Revenue & Expenditure
Finance
Five -Year Forecast
2/12/25
Annual Operating Budget (AOB) Kick -Off Meeting
All Departments
2/12/25
Capital Improvement Program (CIP) Kick -Off Meeting
All Departments
3/5/25
CIP Project and Operating Requests due
All Departments
Feb -March
Budget Engagement Sessions with City's five Commissions Finance
3/11/25
City Council Review of Budget Policies & Priorities
Manager/Finance
3/13-3/20/25
AOB Review Meetings
All Departments
3/26/25
CIP Review Meeting
All Departments
3/24/25
Preparation of Internal Service Fund Allocations
Finance
4/2/25
City Manager review of Operating Requests
City Manager/Finance
4/7/25
Department Narratives for AOB due
All Departments
4/17/25
Finalize Budget Policies
City Manager/Finance
4/25/25
Appendices due
All Departments
4/24/25
Traffic Safety Commission review of CIP
Public Works
5/6/25
Strategic Finance Ad Hoc Subcommittee Meeting
City Manager/Finance
5/12/25
Proposed CIP and AOB Document Distribution
Finance
5/12/25
Community Services Commission review of CIP
TCSD
5/21/25
Planning Commission review of CIP
Community Development
5/22/25
City Council Budget Workshop
All Departments
5/27/25
City Council Meeting — Budget Adoption
All Departments
5/29/25
Old Town Local Advisory Committee review of CIP
Community Development
Annual Operating Budget 1 51

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
52 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
L10]l[41:7_\l1"91Z1_1ki[a]/_14]:Z63L11111111MZI
In addition to the Annual Operating Budget and Capital Improvement Program, the City of Temecula also prepares a Five -Year Financial Projection for the General Fund, Measure S Fund and Temecula Community Services District Funds. The long-range forecasts serve as a strategic planning tool to help evaluate the City's ability to meet its long- term obligations. The benefit of long-range planning is to alert decision -makers of trends in time to implement changes, if necessary.

GENERAL FUND REVENUE
General Fund Revenue is projected by line item using a combination of known information and anticipated trends for the coming five-year period. The City's Budget Team works in tandem with Community Development to identify future projects that could affect revenue levels, such as the addition of new housing developments and commercial establishments. The City also utilizes Sales and Property Tax consultants to assist with identifying statewide trends that may impact City revenues.

Revenue Forecasting Assumptions
• Tax revenues — projected based on recent growth trends combined with known changes in the economy, such as the addition of new businesses or hotels.
• Licenses. Permits and Service Charges — projected based on development projects for which the City has received a planning application and is actively pursuing building permits. • Intergovernmental revenues — projected based on the growth in the City's overall assessed valuation, as this revenue source reflects Property Tax in Lieu of Vehicle License Fees. • Reimbursements — this revenue source primarily reflects the transfer of funds from the Capital Improvement Program (CIP) to reimburse the Public Works department for the administration of the CIP program. • Operating Transfers In —projected based on assumed inflationary growth factors. • Operating Transfers In — Measure S —projected based on the General Fund expenditures eligible for Measure S funding, in accordance with the Appropriation Guidelines noted in the Budget and Fiscal Policies. Public Safety personnel and equipment are the primary recipients of Measure S Transfers.

GENERAL FUND EXPENDITURES
General Fund Expenditure trends are developed using a number of economic assumptions that are applied to the category of expenditures. For Salary and Benefit projections, the City's Budget Team reflects any anticipated changes in staffing levels, CalPERS pension contribution rates, negotiated terms from the City's employment contracts, and Public Safety Contract projections received from the County of Riverside. Non -salary expenditure projections were targeted to remain flat compared to the prior year, with any new requests justified on a case -by - case basis.

Expenditure Forecasting Assumptions
Salaries — projected using current employee salary levels, plus eligible merit and/or negotiated cost of living increases for the ensuing fiscal years, plus newly authorized positions, less any known decreases to authorized positions.

Annual Operating Budget 1 53

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

LONG RANGE FINANCIAL PROJECTION
• Benefits — projected using an employer contribution pension rate of 26% of labor costs, plus a 2.3% cost of living adjustment negotiated per the City's employment contracts. The City has pro -actively reduced the CaIPERS unfunded pension liability utilizing available fund balance and monies set aside in a Section 115 Irrevocable Pension Trust. To date, a total of $29.7 million has been remitted to CaIPERS in the form of "Additional Discretionary Payments (ADP);" which has resulted in ongoing annual savings of $3.5 million in pension costs. This savings is reflected in the Non -Departmental section of the General Fund expenditures.
• Operations and Maintenance Costs — projected utilizing recent trends, adjusted for one-time expenditures and other known anomalies, plus known contractual increases. • Internal Service Fund Allocations - projected utilizing recent trends, adjusted for one-time expenditures and other known anomalies, plus known contractual increases.

GENERAL FUND ANALYSIS
The General Fund Forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully -funded in all five years. Ending Fund Balance for Fiscal Year 2025-26 is projected to be $35,523,239, of which $26,680,709 is committed to fulfilling the Fund's reserves. A total of $465,524 of fund balance is committed to cover the costs of a Sheriff's Deputy position funded by the Pechanga Tribe. A total of $8,377,005 in fund balance is unassigned and available for one-time appropriations.

Fiscal Year 2025-26 General Fund Revenue is projected to increase 7.6% over the prior year with a total of $113,978,529.

Tax revenues are projected to increase by 12.4%, with the growth expected in Sales Tax (2.5%), Property Tax (4.4%), Transient Occupancy Tax ($1.6%), Measure C (9.0%), and Transfers -In from Measure S to support Public Safety.

Total Fiscal Year 2025-26 General Fund Operating Expenditures total $106,722,837, which represents an 8.0% increase over the prior fiscal year, due primarily to significant increases in Public Safety contracts with the County of Riverside.

The Sheriff Department is projected to increase by 11.1%, due mostly to a 9.5% projected increase in the contract with the Riverside County Sheriff's Department, plus the acquisition of four motorcycles due for replacement. The Fire Department is projected to increase by 25.6%, due to contractual increases reflected in the County's contract with CalFire, which included the reversal of a one-time reduction in CaIPERS pension costs for CalFire employees in the prior fiscal year.
140,D00,000
130,000,000
120,000,000
110,000,000
100,000,000

90.0DOX0
80,0D0,000
70,0DDA00
60,DD0,000
50,000,000
General Fund 5-Year Projections
Revenues Over Expenditures
�yZO �� y212Z �y22443 f1114a Fy?A xs F 10' �y75 ZZ FRZI ZS 4yZ8 Z9 fy79'30 —Expenditures —Revenues
54 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR FINANCIAL PROJECTION - GENERAL FUND
FY 23-24
FY 24-25
FY 25-26
FY 26-27
FY 27-28
FY 28-29
FY 29-30
Proposed
%
Projected
%
Projected
%
Projected
Y.

Projected
%
Revised %
Actuals
Budget
Change
Budget
Change
Budget
Change
Budget
Change
Budget
Change
Budget
Change
Revenue:
-
Property Tax
11,231,801
11,652,749

3.7%
12,164,898

4.4%
12,651,494
40%
13,157,554
40%
13,683,856

4.0%
14,231,210
40%
Sales and Use -fax
46,566,619
46,185,715
-0.8%
47,340,358

2.5%
49,760,569

3.0%
50,223,386

3.0%
51,981,204

3.5%
53,800,546

3.5%
Less: Sales Tax Sharing Agmt
(1,556,194)
(1,640,791)

5.4%
(1,690,014)

3.0%
(1,740,715)

3.0%
(1,792,936)

3.0%
(1,846,724)

3.0%
(1,902,126)

3.0%
Franchise Fees
4,343,507
4,566,382

5.1%
4,229,094
-7.4%
4,271,385

1.0%
4,314,099

1.0%
4,357,240

1.0%
4,400,812

1.0%
Transient Occupancy Tax
4,998,676
4,428,313
-11.4%
4,500,000

1.6%
4,635,000

3.0%
4,774,050

3.0%
5,012,753

5.0%
4,917,272
-1.9%
Special Tax (Measure C)
1,908,085
1,926,088

0.9%
2,100,o00

9.0%
2,110,500

0.5%
2,121,053

0.5%
2,131,658

0.5%
2,142,316

0.5%
Licenses, Permits and Service Charges
6,965,814
5,859,682
-15.9%
6,623,241

13.0%
6,752,801

2.0%
6,884,924
20%
7,D19,66D

2.0%
7,157,060
20%
Fines and Forfeitures
579,995
411,406
-29.1%
467,835

13.7%
472,513

1.0%
477,238

1.0%
482,011

1.0%
486,831

1.0%
Use of Money and Property
2,817,147
1,570,390
-44.3%
2,029,640

29.2%
2,049,936

1.D%
2,070,436

1.0%
2,091,140

1.0%
2,112,052

1.0%
Intergovernmental Revenues
10,709,849
11,244,061

5.0%
11,713,171

4.2%
12,177,895

4.0%
12,661,171

4.0%
13,163,739

4.0%
13,686,371

4.0%
Reimbursements
4,691,860
5,003,721

6.6%
5,260,738

5.1%
5,503,618

4.6%
5,771,036

4.9%
6,077,466

4.4%
6,265,543

3.9%
Miscellaneous
309,539
319,708

3.3%
262,512
-17.9%
265,137

1.0%
267,789

1.0%
270,466

1.0%
273,171

1.0%
Subtotal - Operating Revenues
93,566,696
91,526,924
-2.2%
95,001,472

3.8%
97,910,134

3.1%
100,929,797

3.1%
104,374,468

3.4%
107,571,057

3.1%
Operating Transfersln- GasTax/SLESF/PARS
10,392,823
8,411,339
-19.1%
5,428,738
-35.5%
3,491,611
-35.7%
3,555,742

1.8%
3,621,156

1.8%
3,687,878

1.8%
Operating Transfersln-MeasureS
5,230,205
5,995,925

14.6%
13,548,319
126.0%
15,917,431

17.5%
21,252,851

33.5%
22,265,951

4.8%
17,615,754
-20.9%
Total Revenues & Transfers In
109,189,725
105,934,188
-3.0%
113,978,529

7.696
117,319,176

2.9%
125,738,391

7.2%
130,261,574

3.6%
12B,874,689
-1.1%
Prior Version (FY24-25 Mid -Year)
109,199,725
110,573,3a
113,997,924
119,080,575
125,845,797
129,406,389
1fa
Expenditures by Dept:

City Council
584,223
733,181

25.5%
742,448

1.3%
766,185

3.2%
790,731

3.2%
816,113

3.2%
842,363

3.2%
Community Support
120,000
125,000
42%
115,000
-8.0%
115,000

0.0%
115,000

0.0%
City Manager
2,067,960
2,704,600

30.8%
2,796,478

3.4%
2,883,091

3.1%
2,972,457

3.1%
3,064,667

3.1%
3,159,814

3.1%
Economic Development
1,776,315
1,934,943

8.9%
1,927,829
-0.4%
1,985,099

3.0%
2,044,154

3.0%
2,105,052

3.0%
2,167,854

3.0%
Emergency Management
517,975
725,598

40.1%
786,552

8.4%
805,656

2.4%
830,559

3.1%
856,291

3.1%
882,880

3.1%
City Clerk
1,478,069
1,720,159

16.4%
1,655,449
-3.8%
1,705,913

3.0%
1,757,972

3.1%
1,811,677

3.1%
1,967,082

3.1%
City Attorney
922,084
1,115,000

20.9%
1,115,000

0.0%
1,137,300

2.0%
1,160,046

2.0%
1,183,247

2.0%
1,206,912

2.0%
Finance
3,912,439
4,246,920

8.5%
4,467,953

5.2%
4,607,076

3.1%
4,750,631

3.1%
4,898,764

3.1%
5,051,624

3.1%
Human Resources
1,825,985
2,227,631

22.0%
2,388,639

7.2%
2,454,577

2.8%
2,522,446

2.8%
2,592,307

2.8%
2,664,221

2.8%
Planning
3,118,651
3,704,937

18.8%
4,032,039

8.9%
4,153,171

3.0%
4,278,106

3.0%
4,406,965

3.0%
4,539,979

3.0%
Building & Safety
4,718,247
5,147,948

9.1%
5,325,169

3.4%
5,489,094

3.1%
5,658,225

3.1%
5,832,733

3.1%
6,012,792

3.1%
Land Development
2,162,642
2,590,073

19.8%
2,333,802
-9.9%
2,409,411

3.2%
2,487,522

3.2%
2,569,220

3.2%
2,651,593

3.2%
Public Works
7,845,774
8,407,337

7.2%
8,429,191

0.3%
8,673,862

2.9%
8,926,122

2.9%
9,186,221

2.9%
9,454,417

2.9%
CIPAdmin
3,456,647
3,533,694

2.2%
3,768,335

6.6%
3,887,072

3.2%
4,009,608

3.2%
4,136,067

3.2%
4,266,577

3.2%
Parks Maintenance
5,764,177
6,365,642

10.4%
6,467,042

1.6%
6,626,244

2.5%
6,789,662

2.5%
6,957,417

2.5%
7,129,634

2.5%
Sheriff
40,785,303
43,630,453

7.0%
48,474,402

11.1%
51,224,995

5.7%
53,755,094

4.9%
56,410,613

4.9%
59,197,787

4.9%
Fire
10,856,217
11,083,560

2.1%
13,923,013

25.6%
14,947,128

7.4%
15,954,427

6.7%
17,015,476

6.7%
18,332,989

7.7%
Animal Control
444,156
441,582
-Q6%
777,820

76.1%
785,598

1.0%
793,454

1.0%
801,389

1.0%
809,403

1.0%
Non -Departmental
1,140,881
1,072,100
-6.0%
674,400
-37.1%
1,179,980

75.0%
1,200,746

1.8%
1,222,156

1.8%
1,244,230

1.8%
Projected Pension UAL Savings
-
(2,710,437)
(3,477,724)
(3,613,979)
(3,700,691)
(3,789,832)
(3,881,468)
Total Expenditures
93,497,744
90,799,922

5.7%
106,722,837

8.0%
112,222,462

5.2%
117,096,271

4.3%
122,19D,544

4.4%
127,715,591

4.5%
Revenue Over Expenditures
15,691,981
7,134,265
7,255,692
5,096,715
9,642,119
8,071,030
1,159,107
Annual Operating Budget 1 55

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR FINANCIAL PROJECTION - GENERAL FUND
FY 23-24
FY 24-25
FY 25-26
FY 26-27
FY 27-28
FY 28-29
FY 29-30
Proposed %
Projected %
Projected %
Projected %
Projected %
Revised %
Actuals
Budget Change
Budget Change
Budget Change
Budget Change
Budget Change
Budget Change
Transfers Out and One Time Payments:

Community Reinvestment Program
Transfer to Capital Improvement Fund
206,957
(1,495,353)
(50D,000)
1-15 Congestion Relief
(63,949)
(302,494)
Main Street Bridge
328,048
General Plan Update
(57,141)
(1,182,859)
(500,000)
Fire Facility Acquistion Fund
(1,500,000)
-
Insurance Fund Reserve
(1,172,672)
Workers' Compensation Fund Reserve
-
(436,678)
CaIPERS Unfunded Liability Paydown
(14,538,003)
(7,913,492)
(8,267,933)
(8,455,217)
(9,019,970)
(6,304,545)
OPEB Unfunded Liability Paydown
�3,254,000)
Section 115 Pension Trust
(2,000,000)
Total Transfers Out/One-Time Pmts
(21,085,046)
(11,008,195)
(8,767,833)
(8,455,217)
(9,019,970)
(6,304,545)
Revenues Over/(Under) Expenditures
(5,393,065)
(3,873,930)
(1,512,141)
(3,358,502)
(377,851)
1,766,485
1,159,107
Beginning Fund Balance
46,302,374
40,909,309
37,035,379
35,523,239
32,164,736
31,786,886
33,553,371
1 Ending Fund Balance
Prior Version (R24-25 Mid -Year)
40,909,309
40,909,3C�9
37,035,379
38,60S,613
35,523,239
= ,.222.948
32,164,736
35,473,907
31,786,886
3s,372,846
33,553,371
36,500,002
34,712,479
r"a
Desired Reserve Balance (25%)
23,374,436
24,699,981
26,680,709
28,055,615
29,274,068
30,547,636
31,928,895
Reserve Balance
23,374,436
24,699,981
26,680,709
28,055,615
29,274,068
30,547,636
31,928,895
% Funded
100%
100%
100%
100%
100%
100%
100%
Fund Balance Components
Committed to:

Economic Uncertainty (20%)
18,699,549
19,759,984
21,344,567
22,444,492
23,419,254
24,438,109
25,543,116
Secondary Reserve (5%)
4,674,887
4,939,996
5,336,142
5,611,123
5,854,814
6,109,527
6,395,779
Pechanga IGA
422,244
443,356
465,524
489,800
494,909
509,154
534,612
Assigned to:

Capital Projects
1,266,443
500,000
-
-
-
-
-
Unassigned:
15,846,186
11,392,043
8,377,005
3,620,321
2,027,909
2,496,590
2,248,970
Total Fund Balance as of 6/30
40,909,309
37,035,379
35,523,239
32,164,736
31,786,886
33,553,371
34,712,478
Unassigned Fund Balance as % of Op. Exp.
17%
12%
8%
3%
2%
2%
2%
56 1 Annual Operating Budget

PLANNING

BUILDING

LAND DEVELOPMENT

PUBLIC WORKS

PARKS & FACILITIES MAINTENANCE
Special Tax iMeasure Q
Lease Income
Other
POLICE
Parking Citations
Miscellaneous
Vehicle Impound Fees
Reimbursements
FIRE
Various
Grants

NOWDEPARTMENTAL
Residual RPTTF Distribution
Property Tax (Secured)
Property Tax (Unsecured)
Supplemental Tax -AB 2345
Property Transfer Tax
Franchise Fees
Transient Occupancy Tax
Sales and Use Tax - State of Calif.

Less: Sales Tax Sharing Agreement
FEMA Grants
Homeowner Exemption
MVLF- property tax in lieu
Motor Vehicle in Lieu- State
Vehicle Code Fines
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR REVENUE PROJECTION - GENERAL FUND
Actuals
FY 24-25
Revised
Budget
% Chg
From
PriorYr
FY 25-25
Proposed
%Chg
From
PriorYr
FY 25-27
Projection
% Chg
From
PriorYr
FY 27-28
Projection
% Chg
From
PriorYr
FY 28-29
Projection
%Chg
From
PriorYr
FY 29-30
Projectioi
609,014
5&5,404

26.9%
595,404

0.0%
597,112

2.0%
509,o54

2.0%
521,235

2.0%
633,61
2,510,993
2,3W,000

2.2%
2,547,900

10.8%
2,598,756

2.0%
2,650,731

2.0%
2,703,746

2.0%
2,757,&
1,650,654
1,355,522
-17.7%
1,535,522

13.3%
1,567,252

2.0%
1,598,597

2.0%
1,630,559

2.0%
1,663,11
2,300
850
-19.9%
350
-58.9%
354

1.0%
357

1.0%
361

1.0%
31 1,908,0&5 1,925,068 0.9%
85,291 72,992 -14.4%
37,743 13,200 359.8%
115,367 104,040 -9.&%
150,1413 127,456 37.1%
137,526 124,849 -9.2%
112,1363 150,000 -90.2%
1,471,704 1,322,798 -15.0%
42,000 41,171 -2.0%
236,401
250,000

5.8%
13,205,616
9,1315,255

7.7%
459,231
515,313

12.7%
457,395
263,925
-43.5%
797,057
637,000
-20.1%
4,343,507
4,566,382

5.1%
4,998,676
4,428,313
-11.4%
46,565,6113
46,185,715
-0.8%
(1,556,1134)
(1,540,791)

5.4%
0 125,321

0.0%
67,102
70,256

4.7%
10,532,198
11,078,042

5.2%
135,651
124,849
-8.0%
327,102
182,518
-44.2%
2,100,000
90,572
3,570
109,1513
153,955
125,000
150,000
1,553,069
0 253,600 1
10,379,350 4
536,956 4
274,482 4
550,000 2
4,2213,094 -7
4,500,000 1
47,340,359 2
(1,690,014) 3
40,000 -58
70,500 0
11,586,423 4
126,749 1
233,676 28
% Chg
From
Pri or Yr
2,110,500

0.5%
2,121,053

0.5%
2,131,658

0.5%
2,142,316

0.5%
91,479

1.0%
92,392

1.0%
93,316

1.0%
94,250

1.0%
3,606

1.0%
3,542

1.0%
3,679

1.0%
3,715

1.0%
110,251

1.0%
111,353

1.0%
112,467

1.0%
113,591

1.0%
155,535

1.0%
157,090

1.0%
158,661

1.0%
160,249

1.0%
126,250

1.0%
127,513

1.0%
129,799

1.0%
130,076

1.0%
151,500

1.0%
153,015

1.0%
154,545

1.0%
156,091

1.0%
1,696,330

2.0%
1,730,257

2.0%
1,754,862

2.0%
1,8W,1_59

2.0%
0 0.0%
0 0.0%
0 0.0%
0 0.0%
263,744

4.0%
274,2134

4.0%
295,266

4.0%
296,676

4.0%
10,794,524

4.0%
11,225,305

4.0%
11,675,357

4.0%
12,142,371

4.0%
559,445

4.0%
580,792

4.0%
504,014

4.0%
529,174

4.0%
285,461

4.0%
295,880

4.0%
308,755

4.0%
321,105

4.0%
576,000

4.0%
703,040

4.0%
731,162

4.0%
760,408

4.0%
4,271,395

1.0%
4,314,0139

1.0%
4,357,240

1.0%
4,400,912

1.0%
4,635,000

3.0%
4,774,050

3.0%
5,012,753

5.6%
4,917,272
-1.9%
49,760,569

3.0%
50,223,396

3.0%
51,981,204

3.5%
53,900,546

3.5%
(1,740,715)

3.0%
(1,792,935)

3.0%
(1,846,724)

3.0%
(1,902,125)

3.0%
0 -100.0%
0 0.0%
0 0.0%
0 0.0%
73,320

4.0%
76,253

4.0%
79,303

4.0%
82,475

4.0%
12,045,890

4.0%
12,531,975

4.0%
13,033,150

4.0%
13,554,476

4.0%
128,015

1.0%
129,296

1.0%
130,599

1.0%
131,994

1.0%
236,013

1.0%
239,373

1.0%
240,757

1.0%
243,154

1.0%
Annual Operating Budget 1 57

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR REVENUE PROJECTION - GENERAL
FY 24-25
% Chg
FY 25-25
% Chg
FY 26-27
% Chg
FY 27-28
% Chg
FY 28-29
%Chg
FY 29-30
% Chg
Revised
From
From
From
From
From
From
Actuals
Budget
PriorYr
Proposed
PriorYr
Projection
PriorYr
Projection
PriorYr
Projection
PriorYr
Projection
PriorYr
Business Licenses
283,406
280,909
-0.9%
285,526

2.0%
289,391

1.0%
292,285

1.0%
295,209

1.0%
298,160

1.0%
Miscellaneous
158,338
190,100

20.1%
106,332
-44.1%
107,395

1.0%
108,469

1.0%
109,554

1.0%
110,650

1.0%
Right of way advertising
1,050
2,142
104.0%
2,185

2.0%
2,207

1.0%
2,229

1.0%
2,251

1.0%
2,274

1.0%
Investment Interest
2,552,725
1,324,449
-49.1%
1,757,567

32.7%
1,775,143

1.0%
1,7132,894

1.o%
1,810,823

1.0%
1,929,931

1.o%
Lease Income
159,277
155,000
-2.5%
174,000

5.5%
175,740

1.0%
177,497

1.0%
179,272

1.0%
181,065

1.0%
Reimbursements- Miscellaneous
179,299
160,000
-10.3%
163,200

2.0%
154,832

1.0%
166,490

1.0%
169,145

1.0%
169,827

1.o%
Reimbursements- Pechanga IGA
404,061
422,244

4.5%
473,557

12.2%
501,570

6.0%
527,069

5.0%
553,422

5.0%
581,093

5.0%
Reimbursements- Capital Improvement Program
3,172,243
3,180,326

0.3%
3,391,502

5.5%
3,527,162

4.0%
3,668,245

4.0%
3,814,978

4.0%
3,967,577

4.0%
Operating Transfer In - Measure S Fund
5,230,205
5,995,925

14.6%
13,548,319
126.0%
15,917,431

17.5%
21,252,851

33.5%
22,255,951

4.8%
17,615,754
-20.9%
Operating Transfer In - Gas Tax
3,075,185
3,129,775

1.9%
3,143,671

0.4%
3,206,544

2.0%
3,270,675

2.0%
3,336,099

2.0%
3,402,811

2.0%
OperatingTransferIn-COPS
317,639
281,554
-11.4%
285,067

1.2%
285,067

0.0%
295,067

0.0%
285,067

0.0%
295,067

0.0%
Op e rati ng Tra n sfer In - PARS Trust
7,000,000
51000,000
-29.6%
2,000,000
-60.0%
-100.0%

0.0%

0.0%
Interest Income - Leases
9,2,53
7,959
-19.2%
7,501
-5.8%
7,576

1.0%
7,652

1.0%
7,728

1.0%
7,806

1.0%
Reimbursements-ServicesCFOs
535,475
895,330

39.3%
1361,8713
S.5%
1,077,249

12.0%
1,175,009

9.1%
1,254,849

6.8%
1,30-3,113

4.3%
State Mandated Cost Reimbursement
162,169
50,000
-59.2%
50,060

0.0%
50,000

0.0%
AB1379 Collection State Imposed $4 Fee
26,651
30,000

12.6%1
30,600

2.0%1
30,906

1.0%
31,215

1.0%
31,527

1.0%
31,842

1.0%
58 1 Annual Operating Budget

City Council:

Community Support
City Manager:

Economic aev.

Emerg Mgmt
City Clerk:

Salaries
O&M
ISF
Salaries
Project Salaries
O&M
ISF
Salaries
Proj ect Sa la ri e s
O&M
ISF
Salaries
O&M
Capital Outlay
ISF
Salaries
Proj ect Sa la ri es
O&M
ISF
City Attorney (Contract)
Finance Salaries
Project Salaries
O&M
Capital Outlay
ISF
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND
23-24
24-25
%
25-26
%
26-27
%
27-29
%
28-29
%
29-30
%
Actuals
Revised
Change
Proposed
Change
Projection
Change
Projection
Change
Projection
Change
Projection
Change
123,033
188,2613

53.0%
219,665

16.7%
226,255

3.D%
233,043

3.0%
240,034

3.0%
247,235

3.0%
136,148
217,667

59.9%
188,206
-13.5%
191,570
-3.5%
195,810

2.0%
195,726

2.0%
203,720

2.0%
325,042
327,254

0.7%
334,577

2.2%
347,960

2.4%
361,875

4.0%
376,354

4.0%
391,409

4.0%
584,223
733,181

25.5%
742,448

1.3%
766,185

1.0%
790,731

3.2%
816,113

3.2%
842,363

3.2%
120,000
125,000

4.2%
115,000
-8.0%
115,000
-8.0%
115,000

0.0%
115,000

0.0%
1,376,354
1,999,435

45.3%
2,057,409

2.3%
2,115,130

3.0%
2,192,704

3.0%
2,249,185

3.0%
2,315,531

3.0%
2,385
-
-100.0%
-

0.0%
-

0.0%
207,043
227,209

9.7%
233,619

2.9 %
238,291
-2.7%
243,057

2.0%
247,519

2.0%
252,977

2.0%
482,178
477,956
-0.9%
505,451

5.2%
525,669

2.5%
546,695

4.0%
559,554

4.0%
591,306

4.0%
2,067,960
2,704,600

30.8%
2,796,478

3.4%
2,883,091

2.4%
2,972,457

3.1%
3,064,667

3.1%
3,159,314

3.1%
996,558
1,010,729

1.4%
1,065,282

5.4%
1,097,240

3.0%
1,130,159

3.0%
1,154,052

3.0%
1,198,994

3.0%
16,376
19,745

20.6%
21,752

10.2%
22,415

3.0%
23,097

3.0%
23,780

3.0%
24,493

3.0%
451,257
531,914

10.5%
443,647
-15.7%
457,520
-12.4%
465,772

2.0%
476,109

2.0%
495,630

2.0%
282,124
372,555

32.1%
392,138

5.3%
407,924

2.6%
424,136

4.0%
441,102

4.0%
458,746

4.0%
1,776,315
1,934,943

8.9%
1,927,829
-0.4%
1,985,099
-1.1%
2,044,154

3.0%
2,105,052

3.0%
2,167,854

3.0%
167,300
196,806

11.7%
209,207

12.0%
215,483

3.0%
221,948

3.0%
228,606

3.0%
235,464

3.0%
98,307
247,549
151.9%
253,317

2.3%
258,383
-1.1%
263,551

2.0%
269,922

2.0%
274,199

2.0%
29,021
12,100
-58.3%
5,000
-58.7%
-100.0%

0.0%

0.0%
223,347
279,043

24.9%
319,028

14.3%
331,799

2.3%
345,061

4.0%
359,963

4.0%
373,219

4.0%
517,975
725,598

40.1%
786,552

8.4%
805,656
-11.0%
830,559

3.1%
8%,Z91

3.1%
882,880

3.1%
959,774
1,041,632

8.5%
1,080,496

3.7%
1,112,911

3.0%
1,145,298

3.0%
1,180,697

3.01A
1,216,108

3.0%
8,500
11,400

34.1%
11,400

0.0%
11,742

3.0%
12,094

3.0%
12,457

3.0%
12,931

3.0%
152,922
303,553

98.5%
241,731
-20.4%
246,555
-11.5%
2,51,497

2.0%
255,527

2.0%
261,557

2.0%
356,872
363,574

1.9%
321,822
-11.5%
334,695

2.3%
349,083

4.0%
352,006

4.0%
376,495

4.0%
1,478,068
1,720,159

16.4%
1,655,449
-3.8%
1,705,913

0.5%
1,757,972

3.1%
1,811,677

3.1%
1,867,092

3.1%
922,094
1,115,000

20.9%
1,1151000

0.0%
1,137,300

2.0%
11160,046

2.0%
1,183,247

2.0%
1,206,912

2.0%
2,915,194
3,122,997

7.1%
3,233,7613

3.6%
3,330,782
-1.4%
3,430,706

3.0%
3,533,627

3.0%
3,639,635

3.0%
-
20,048

0.0%
166,315
729.6%
171,305

3.0%
176,445

3.0%
181,739

3.0%
187,190

3.0%
226,737
325,917

43.7%
279,737
-14.2%
295,332
-25.9%
291,038

2.0%
296,959

2.0%
302,796

2.0%
-
33,000
-
-10D.0%
770,508
745,068
-3.3%
789,131

5.9%
815,556

2.5%
852,442

4.0%
885,540

4.0%
1322,002

4.0%
3,912,439
4,246,920

8.5%
4,467,953

5.2%
4,607,076
-2.5%
4,750,631

3.1%
4,898,764

3.1%
5,051,624

3.1%
Annual Operating Budget 1 59

HR Salaries
Project5alaries
O&M
ISF
Planning: Salaries
Project Salaries
O&M
ISF
Code Enforcement Salaries
O&M
Capital Outlay
ISF
Building&Safety Salaries
O&M
ISF
Land Development: Salaries
Project Salaries
O&M
Capital Outlay
ISF
Public Works:

Salaries
Project5alaries
O&M
Capital Outlay
ISF
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND
23-24 24-25 % 25-26 % 24Er27 % 27-28 % 28-29 %
Actuals Revised Change Proposed Change Projection Change Projection Change Projection Change '347,045
1,018,312

7.5%
1,136,730

11.5%
1,170,832
-15.2%
1,205,957

3.0%
24,433
9,519
-60.6%
-
-100.0%
-

0.0%
-

0.0%
586,059
937,564

60.0%
'312,029
-2.7%
'330,259
-3.1%
'349,974

2.0%
268,437
262,135
-2.3%
339,881

25.7%
353,476

2.5%
357,515

4.0%
1,925,985
2,227,631

22.0%
2,388,639

7.2%
2,454,577
-5.2%
2,522,446

2.3%
1,538,155
2,032,802

4.5%
2,312,951

13.9%
2,382,340

3.0%
2,453,910

3.o%
15,100
70,720
368.3%
93,144

31.7%
95,938

3.0%
98,815

3.0%
265,370
775,929
192.4%
904,409

3.7%
920,497
-14.0%
936,907

2.0%
899,986
825,585
-9.3%
921,535
-0.5%
854,395

2.8%
888,572

4.0%
3,118,651
1,704,937

18.8%
4,032,039

8.8%
4,153,171
-0.9%
4,278,106

3.0%
812,055
865,358

6.5%
1,016,946

17.5%
1,047,454

3.0%
1,078,87.5

3.0%
184,734
321,434

74.0%
276,360
-14.0%
281,997
-5.5%
287,52-5

2.0%
11,840
10,319
-12.8%
-
-100.0%
-
o.o%
-

0.0%
357,082
294,894
-17.4%
374,933

27.1%
389,826

2.9%
405,419

4.0%
1,365,722
1,491,995
2,383,591
2,681,054
297,359
365,043
671,575
609,946
3,352,525
1,552,547
17,107
70,556
10,102
512,330
2,162,642
3,124,047
27,266
2,639,497
14,282
2,040,592
7,845,774
3,655,953 9.1
1,829,386 17.8
21,793 27.4
173,020 145.2
2,590,073 19.
3,425,559 9.
48,948 79.
2,866,597 S.
- -100.
2,066,233 1.
8,407,337 7.
1,668,139 11.
2,1574,029 -0.
332,246 -5.
650,755 6.
3,657,030 0.
1,647,317 -10.
23,425 7.
51,800 -70.
611,250 8.
2,333,902 -9.
3,415,565 -o.
57,692 17.
2,888,212 0.

0. 2,067,722 0.
8,429,191 0.
1,719,168 1.3 %
2,754,250 3.0%
338,891 -33.2%
576,795 2.9%
3,769,926 -1.9%
1,696,735 3.0%
24,129 3.0%
52,835 -49.4%
o.0%
535,710 2.5%
2,409,411 0.7%
3,519,032 1.1%
59,423 3.0%
2,945,976 -9.2%
--100.0%
2,150,431 2.5%
9,673,962 -3.5%
1,771,822 3.1%
2,836,877 3.0%
345,669 2.0%
703,857 4.0%
3,886,443 3.1%
1,747,639 3.0%
24,952 3.0%
53,893 2.0%

0.0%
661,139 4.0%
2,487,522 3.2%
3,623,573 3.0%
61,205 3.0%
3,004,896 2.0%
- 0.0%
2,236,449 4.0%
8,9215,122 2.9%
1,242,135 3.0%
- 0.0%
957,951 2.0%
382,320 4.0%
2,592,307 2.9%
2,527,424 3.0%
101,791 3.0%
853,545 2.0%
924,115 4.0%
4,406,965 3.0%
1,111, 244 3.0%
293,275 2.0%
- 0.0%
421,536 4.0%
1,826,156 3.1%
2,921,984 3.0%
352,582 2.0%
732,011 4.0%
4,006,ST7 3.1%
1,800,067 3.0%
25,597 3.0%
54,971 2.0%
o.0%
687,584 4.0%
2,568,220 3.2%
3,732,280 3.0°%
63,042 3.0%
3,064,994 2.0°%
- 0.0%
2,325,906 4.0°%
9,186, 221 2.9%
29-30 %
ojection Change
1,279,400 3.0%
- o.o%
'387,203 2.0%
357,513 4.0%
2,664,221 2.9%
2,603,247 3.0%
104,834 3.0%
870,713 2.0%
561,080 4.0%
4,539,879 3.0%
1,144,582 3.0%
299,141 2.0%
- 0.0%
438,502 4.0%
1,892,224 3.1%
3,0013,543 3.0%
359,534 2.0%
761,2131 4.0%
4,130,S68 3.1%
1,854,070 3.0%
26,355 3.0%
56,070 2.0%

0.0%
715,099 4.0%
2,651,593 3.2%
3,944,249 3.0%
64,933 3.0%
3,126,294 2.0%
- 0.0%
2,418,542 4.0%
9,454,417 2.9%
60 1 Annual Operating Budget

CIPAdmin: Salaries
O&M
Capital Outlay
ISF
Parks Maint Salaries
Project Salaries
O&M
Capital Outlay
ISF
Police: Salaries
Project Salaries
Contract
O&M -contract
Capital Outlay
ISF
O&M
Fire Capital outlay
Salaries
Project Salaries
Contract Fire Suppression
Contract Fire Prevention
O&M
ISF
Animal Control
Animal Control - Debt Service
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND
23-24
24-25
%
25-26
%
26-27
%
27-28
%
28-29
%
29-30
%
Actual
Revised
Change
Proposed
Change
Projedion
Change
Projection
Change
Projection
Change
Projection
Change
2,859,0133
2,891,143

0.8%
3,104,522

7.8%
3,1137,751

3.0%
3,293,653

3.096
3,392,504

3.0%
3,494,279

3.096
30,030
65,700
118.8%
47,500
-27.7%
49,450
-25.3%
49,419

2.01A
50,407

2.0%
51,416

2.0%
5,234
33,395
538.0%
-
-100.0%
562,290
553,455
-1.6%
615,213

11.3%
540,862

2.9%
666,496

4.0%
693,156

4.0%
720,882

4.0%
3,456,647
3,533,694

2.2%
3,768,335

6.6%
3,887,072

2.5%
4,009,608

3.2%
4,136,067

3.2%
4,256,577

3.2%
1,502,294
1,574,316

4.8%
1,500,755
-4.7%
1,545,779

3.0%
1,592,151

3.0%
1,539,915

3.0%
1,639,113

3.0%
55,005
111,471

71.5%
122,105

5.5%
125,758

3.0%
129,541

3.01A
133,427

3.0%
137,430

3.0%
3,799,382
4,140,300

9.0%
4,162,554

0.5%
4,245,805

1.1%
4,330,721

2.0%
4,417,336

2.0%
4,505,582

2.0%
84,439
55,451

14.2%
-
-100.0%

0.0%

0.01A

0.0%

0.0%
313,065
443,104

41.5%
581,528

53.8%
708,893

1.9%
737,249

4.0%
766,739

4.0%
797,408

4.0%
5,764,177
6,3155,642

10.4%
6,467,042

1.5%
6,626,244

1.6%
6,789,662

2.5%
6,957,417

2.5%
7,129,634

2.5%
36,503
-
-100.0%
-

0.0%
-

0.0%
-
o.o%
-

0.0%

0.0%
59,533
60,504

1.6%
27,835
-54.0%
-
-100.0%
-

0.0°%
-
o.o%

0.0%
38,619,319
41,147,444

6.5%
45,676,061

11.C%
49,446,625

6.1%
50,993,956

5.1%
53,453,654

5.0%
56,161,835

5.01A
698,115
757,106

8.4%
779,810

3.0%
903,262

3.0%
827,488

3.0°%
852,515

3.0%
979,369

3.0%
114,SM
-
-100.0%
192,00o

0.C%
120,000
-37.5%
120,000

0.0%
120,000

0.01A
412,473
608,372

47.5%
590,1335

11.9%
714,993

1.9%
750,732

5.01A
799,269

5.0%
827,682

5.0%
944,575
1,057,027

25.1%
1,117,750

5.7%
1,140,115
-0.7%
1,162,918

2.0%
1,186,176

2.0%
1,203,899

2.01A
40,785,303
43,630,453

7.0%
48,474,402

11.1%
51,224,985

5.5%
53,755,094

4.9%
56,410,613

4.9%
59,197,787

4.9%
45,966
70,000

49.0%
-
-100.0%
-

0.0%
-

0.0%
597,232
701,334

17.4%
794,996

13.4%
818,846

3.0%
843,411
MIA
868,714

3.0%
894,775

3.0%
-
40,000

0.0%
20,060
-50.0%
20,600

3.0%
21,218

3.01A
21,855

3.0%
22,510

3.0%
7,795,429
7,602,339
-2.4%
10,000,234

31.5%
10,874,731

8.7%
11,726,189

7.9%
12,624,997

7.7%
13,773,284

9.1°%
1,103,170
1,190,333

7.9%
1,555,818

30.7%
1,533,609

5.0%
1,715,289

5.0°%
1,801,054

5.0%
1,891,107

5.0%
569,3613
756,191

32.8%
735,0132
-2.81A
749,794
-3.3%
754,790

2.01A
780,096

2.0%
795,687

2.0%
754,060
723,364
-4.1%
916,873

12.91ya
849,549

2.3%
993,530

4.0°%
919,971

4.0%
955,625

4.0%
10,856,217
11,083,560

2.1%
13,923,013

25.6%
14,947,128

6.9%
SS,954,427

5.7%
17,015,476

6.7%
18,39.2,999

7.7%
356,940
354,366
-0.7%
637,769

80.C%
644,147

77.7%
650,599

1.0%
657,094

1.0%
663,665

1.01A
97,216
87,216

0.0%
140,051

60.6%
141,452

62.2%
142,965

1.0%
144,295

1.0%
145,739

1.o%
444,156
441,SS2
-0.6%
777,820

76.1%
78S,SM

74.7%
793,454

1.0%
801,389

1.0%
909,403

1.0%
Annual Operating Budget 1 61

City of Temecula
Fiscal Year 2025-26
l Annual Operating Budget

FIVE-YEAR EXPENDITURE PROJECTION - GENERAL FUND
23-24
24-25
%
25-26
%
26-27
%
27-29
%
28-29
%
29-30
95 Actual
Revised
Change
Proposed
Change
Projection
Change
Projection
Change
Projection
Change
Projection
Change
Non -Departmental:

Retiree Medical Contribution
598,733
298,000
-70.2%
289,000
-3.09%
2&9,000

0.0%
289,000

0.0%
299,000

0.0%
289,000

0.0%
PERs Replacement Benefit
&5,822
90,000

4.9%
91,8Qo

2.0%
93,635

2.0%
95,509

2.0%
97,419

2.0%
99,357

2.0%
Projected Pension UAL Savings
(2,710,437)

0.0%
(3,477,724)

28.3 %
(3,513,979)

3.5%
(3,700,651)

2.4%
(3,7813,832)

2.4%
(3,881,46&)

2.4%
Capital Project O&M Costs
-

0.0%
-

0.0%
500,000

0.0%
515,000

3.0%
530,450

3.0%
545,354

3.0%
Staffing Continuity Reserve
534,100

6.0%
200,000
-66.3%
200,000
-50.0%
200,000

0.0%
200,000

0.0%
Prop. Tax Admin
56,325
90,000

59.9%
93,00

4.0%
97,344

4.0%
101,238

4.0%
105,297

4.0%
1013,4139

4.0%
1,140,991
(1,638,3371
-243.5%
(2,903,3241
71L1%
(2,433,9991
-6.5`/0
(2,499,9451

2.7%
(2,567,6761

2.7%
(2,637,2381

2.7%
Su m m a ry by Category
SalariesfBenefits
Pension UALSavings
Project Salaries
O&M
I5F
Capital outlay
Fire Contract Prevention
Police Contract
Non -Departmental
22,290,919
24,559,023F'

10.2%
25,459,738P-

3.7%
25,233,830P-

1.1%
27,020,845P'

3.0%
27,831,470p'

3.0%
29,556,414

3.0%
0 -2,710,437
-3,477,724

28.3%
-3,613,979
-3,700,591
-3,789,832
-3,891,458
235,705
414,248 P'

75.7%
543,579 P-

31.2%
531,320 P
-2.3%
547,259 P'

3.0%
563,677 P'

3.0%
590,587

3.0%
12,075,585
14,994,155 P'

24.2%
14,981,039 P
-0.1%
15,270,581 P
-3.6%
15,565,835 P'

1.9%
15,855,918 P'

1.9%
15,173,943

1.9%
9,232,052
9,518,305 Pr

3.1%
10,322,793 P

8.5%
10,742,504 P

2.5%
11,179,354 P'

4.1%
11,534,035 P'

4.1%
12,107,279

4.1%
315,458
255,255
-19.3%
197,000
-22.9%
120,000 F'
-71.3%
120,000 P'

0.0%
120,000 P'

0.0%
120,000

0.6%
8,888,599
9,792,671
-1.1%
11,555,052

31.4%
12,509,340 F'

8.2%
13,441,479 P'

7.5%
14,425,951 P'

7.3%
15,554,391

8.6%
39,317,435
41,904,550

5.5%
45,455,971

10.9%
49,249,897 F'

5.0%
51,721,444 P'

5.0%
54,315,158 P'

5.0%
57,040,205

5.0%
1,140,881
1,072,100
-5.0%
574,400
-37.1%
1,179,980

34.9%
1,200,746 P'

1.8%
1,222,156 P'

1.8%
1,244,230

1.8%
53,497,744
98,799,922

5.7%
106,722,937

8.0%
112,222,462

3.3%
117,095,271

4.3%
122,190,544

4.4%
127,715,581

4.5%
62 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND
2023-24 2024-25 2025-25 202&-27 2D27-28 21328-29 2629-34 Actuals Revised Praposed Projection Projection Projection Projection Revenue
Est' m ated An n u a I Growth Rate
-1_7%
-0-9%

2.5%

3.Gf%
35%

3.5%
Sales Tax
37,673,402
37,365,950
38,30D,099
39,257,501
40,435,323
41,950,566
43,315,336
Investment Interest
2,325,p92
1,604,911
1,728,370
1,771,579
1,824,727
1,888,592
1,954,593
Total Revenue
39,998,494
38,970,861
40,028,469
41,029,1W
42,260,055
43,739,158
45,270,028
% Gra%,,+h over Prior Year
Transfers Out - Operating Expenditures
Public Safety
Police Staffing
Fire Staffing (Station 35)
Public Safety Subsidy
Fire - ISF (4ln5pect. Vehicles & Ladder Truck)
IT- Citywide Security Cameras O&M
Asset ManQgement
Reserve Fund Contribution - Street Maintenance Fund (103) Reserve Fund Contribution - Facilities Replacement Fund (350) C�,annn r gnnfirnc

2.3%
-2.696_.

2.7%

2.5%

3.07s

3.5%

3.5%
4,201,550
4,757,194
5,209,128
5,521,575
5,797,759
5,751,539
6,039,178
769,869
977,292
1,075,021
1,128,772
1,185,211
1,244,471
1,306,595
7,000,000
9,000,000
14,000,0pp
15,000,000
10,000,000
170,390
17D,39G
170,390
170,390
170,390
170,390
170,390
300,000
3UG,000
3DD,OOD
300,OM
300,000
300,D90
300,000
2,040,Dp0 2,000,000 1,006,004 1,0D0,040 1,D0p,ow 1,00%ouu 1,0w,000 2,55D,OOD 2,5UD,000 1,250,OD0 1,250,000 1,250,OW 1,250,DD0 1,250,004 TCSV Operations (subsidy)
13,254,402

1.5,854,726
15,480,467
17,389,215
18,151,D39
18,945,152
19,771,955
Library (subsidy)
818,085
1,127,563
1,384,016
1,425,536
1,468,303
1,512,352
1,557,722
Public Works - Enhanced Custodial Svcs
99,397
91,049
93,790
96,594
99,491
102,476
105,551
Total Operating Expenditures
24,152,592
27,788,214
33,962,902
37,291,182
43,422,192
45,276,440
41,501,391
%Grawthover Prior Year
=6.3%

15.1%

3.6%

9.9%
_6.5%

4.3%
-8.3%
Excess of Revenues overl(Under) Operating Expenditures
15,845,902
11,192,647
6,%5,666
3,747,998
(1,162,135)
(1,537,282)
3,76B,538
Annual Operating Budget 1 63

City of Temecula
Fiscal Year 2025-26
l Annual Operating Budget

FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND
2023-24 2024-25 2025-25 2026-27 2027-28 2028-29 2429-30 Actuals Revised Prapused Projection Frojedian Projection Projection Transfers Out- Capital Improvement Program
..................................................................................................................................................................................................................................................................... . 612 ADA Transition Plan Implementation 83,093 324,227 79,660 79,560 78,550 78,560 78,560 ..................................................................................................................................................................................................................................................................... . 790 Auto Mall Wayfinding Signs 200,000 535,218
..................................................................................................................................................................................................................................................................... . 768 Bike Lane and Trail Program - Great Oak Trail Lighting 352,908 ...................................................................................................................................................................................................................................................................... ..........
793 Bike Land and Trail Program - Ronald Reagan Sports Park Trails 12,815 240,679 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 720 Bike Lane and Trail Program - Temecula Creek South Side Trail 95,276 248,287 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW23-10 Bike Lane upgrades- Citywide 50 49,900
524 CherryStreet Extension and Murrieta Creek Law -Flow Crossing 90,030 77,641 7713 City FacilitySecurityImprovements 150,000
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 711 Citywide Security Cameras 145,50C 454,494
722 Citywide Drainage Master Plan 221,353 325,353 43,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 724 Citywide Financial System upgrade 113,124
..................................................................................................................................................................................................................................................................... . bss Citywide StreetlightAcquisition LED Conversion {32,553} - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 730 Community Recreation Center Renovation 593 774,908 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2o5 CRC Splashpad and Shade Structures 1,405,206 894,508 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 521 Diaz Road Expansion (Rancho Cal to Cherry St) 500,931 207 Dag Park Renovation 393,465 89,514
--------------------------------------------------------------------------------------------------------------------------------------------------------------- PW23-20 Empire Creek Irprovements 923,949
789 Fiber Optic Communication Systems- Citywide 30,732 97,950 ..................................................................................................................................................................................................................................................................... . 6s7 Fire Station 73 - Gym/Garage 156,239 193,599 4,300,300 ..................................................................................................................................................................................................................................................................... . 667 Fire Station M Renovations 43,111 681,965 227,245
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 670 Flashing Beacons and Speed Advisory Signs 21,446 42,554 ..................................................................................................................................................................................................................................................................... . 725 French Valley Parkway/ F15 Interchange Improvements -Phase II 453,762 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 728 French Valley Parkway/ F15 Interchange Improvements -Phase III 16,184 525,633 mo,000 200,000 200,000 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 690 1-15/SR73South Interchange Enhanced Landscaping 68,539 620,306 PWBV-24 1-15 Corridor Branding and Visioning Improvements 200,000 755 Local Roadway Safety Plan - 35,000
Pw23-i3 Lang Canyon Creek Park Restrooms 15,427 1,2-a2,503 190,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6s2 Margarita Recreation Center 3,406,259 415,476
.................................................................................................................................................................................................................................................................... . 64 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND
2023-24 2024-25 2025-25 202&-27 2027-28 2028-29 2029-34 Aetuals Revised Proposed Projection Projection Projection Projection TransfersOu#- CapitalImprovementPrUgram----------------------------------............................................------------------------------------------------------------------......=='09M--------------------------- ??1
P,Flary Phillips Senior Center Emergency Generator
4,896
-
7s2
Mary Phillips Senior Center Enhancement and Renovation
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 703,397
- - - - - - - - - - - - - - - - - - - - - - - - - -
145,004)
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 796
Mary Phillips Senior tenter Outdoor Recreation Area
240,783
704
Medians&TrafficCalmininglmpro-vements-Citywide
580,000
Gas
Murrieta Creek Bridge at Overland
..................................................................................................................................................................................................................................................................... 120,555
879,334
.
735
Murrieta Creek Improvements
1,385,867
7s5
Nicolas Road Multi -Use Trail Extension
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
150,000
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pw2a-ox
North General Kearny Street Improvements
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,795
- - - - - - - - - - - - - - - - - - - - - - - - - -
372,552
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 694
OldTownParkingStructure
405,000
730
Old Town Security Camera and Sound System Upgrade
..................................................................................................................................................................................................................................................................... 1,573
89,665
.
155
Park Restrooms Expansion, Renovations and ADA Improvements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
1,032,000
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 130
Parks Improvement Program
672,218
399,792
Pavement Rehabilitation Program -Citywide
..................................................................................................................................................................................................................................................................... -
11001 1000.

Pw23-09
Pavement Management Program update
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
85,02-0
- - - - - - - - - - - - - - - - - - - - - -
100,000
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW23-11
PedestrianRampIJpgrades- Citywide
50 49,950
7s7
Pickleball Courts
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 400e955
- - - - - - - - - - - - - - - - - - - - - - - - - -
1,624,923
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 120
Playground Equipment Enhancement and Safety Surfacing
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,337,924
- - - - - - - - - - - - - - - - - - - - - - - - - -
400,000
- - - - - - - - - - - - - - - - - - - - - -
939,775
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 726
Rainbo-w Canyon Ro-ad Pavement Rehabilitation
350,000
791
Rancho California Road Medians
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5,234
- - - - - - - - - - - - - - - - - - - - - - - - - -
143,766
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2o6
RCWD Recycled Wate r Acce I e rate d Retrofit Program
..................................................................................................................................................................................................................................................................... 33,001
.
223
RRSP Ho-ckey Rink
105,733
1,853,332
224
RRSP P u m p Tra ck Sa d e Stru ctu re
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 79,552
- - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 114
RRSP Restroom Expansion and Renovation
145,914
222
RRSP Skate Park
i31,690
3,858,430
719,135
732
Santa Gertrudis Creek Phase II - Margarita Under -Crossing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3B,917
- - - - - - - - - - - - - - - - - - - - - - - - - -
1,758,376
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 708
Sidewalks -Citywide
38,389
342,653
766
Sidewalks -Old Town Improvement Project
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 179,977
- - - - - - - - - - - - - - - - - - - - - - - - - -
(299,719)
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - P+AnW-02
Sidewalks- Pauba Road
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 55,315
- - - - - - - - - - - - - - - - - - - - - - - - - -
52%2-08
- - - - - - - - - - - - - - - - - - - - - -
100,0W
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PW23-03
Sidewalks -Third Street
373
PW22-16
Sixth Street Improvements
..................................................................................................................................................................................................................................................................... 147,486
834,940
.
141
Sports Court Resurfacing
.................... . . ..................................................................................................... 114,257..........
200,0()0104,000
..................................9o4.............................._ Annual Operating Budget 1 65

FIVE-YEAR FINANCIAL PROJECTION- MEASURES FUND
2023-24 2324-25 2025-25 2026-27 2027-28
Actuals Revised Proposed Projection Projection
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
2028-29 2029-30
Projectifln Projection
Transfers Out- Capita llmpro►relrrentProgiam ....................... ------------ ------ ------------------------ =
113 Sports Field Light-ing-LED Conversion 1,354,583
P%'VSN23 Storm Drain Pipe Lining 12,186 508,354 532,550 1,870,050 1,870,050 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Temecula Creek Fencing 31g,000
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - NEVY Temecula Duck Pond Spillway Project 1,296
6s3 Traffic Signal Equipment Enhancement Program - Citywide 367,540 1,271,840 260,000 260,900 260,000 260,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6a2 Traffic Signal Installation —Citywide 558,758
TrafficSignal-Pedestrian Signal Equipment Upgrade Phase 2- PW23-12 Citywide
50 79,720
ass TrafficSign aI - Promenade M a I I Ring Road
156,035
FIw23-13 Traffic Signal - Safety Lights & Sign al Communications Upgrade - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 220,000
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
610 TrafficSign aI System Upgrade
205,000
-
Traffic Signal Fiber Optic Extension
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 265,000
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
208,150
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
PW22-12 Uptown Temecula Sports Park
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,249
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,369,751
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
PW23-06 Vail Ranch Park Restroorns
25,292
1,297,636
70,000
Total CIP Project Expenditures
11,388,857
34,283,385
SIW91109
1,686,535
2,508,710
438,660
2,048,710
Total Expenditures/Transfers out
35,541,559
52,07i 599
42,771,911
38,967,717
45,930,902
45,715,100
43,550,101
Excess of Revenues Overl(Under) Total Expenditures
4,456,935
(23,100,738�
j2,743,443)
2,061,463
(3,670,946)
(1,575,942)
1,719,329
Fund Balance, Beginningo€Yea r
45,992,338
50,449,273
27,348,536
24,605,093
26,666,556
22,995,710
21,019,768
Fund Balance, End ofYear
50,449,27324,605,093
666 i
22,995,710
21,019,768*G
66 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FIVE-YEAR FINANCIAL PROJECTION - TEMECULA COMMUNITY SERVICES DISTRICT FUND FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 FY29.3D Adjusted
%
Proposed
°%
Projected
%
Projected
%
Projected
%
Projected
%
Actuals
Budget
Change
Budget
Change
Budget
Change
Budget
Change
Budget
Change
Budget
Change
TCSD Program Revenues
2,779,695
2,836,576

2.0%
2,860,431

2.1%
2,899,036

1.D%
2,917,926

1.0%
2,947,105

1.0°%
2,976,576

1.0%
Measure C Revenues
1,908,085
1,926,088
D.9%
1,935,718

0.5%
1,955,076

1.0%
1,974,626

1.0%
1,994,373

1.0%
2,014,316

1.0%
Measure S Contribution
13,254,402
15,864,726

19.7%
16,480,467

1.9%
17,388,215

5.5%
18,151,038

4.4%
18,945,152

4.4%
19,771,855

4.4%
TatalRevenues
17,942,182
20,627,390

15.D%
21,276,617

1.9%
22,232,326

4.5%
23,D43,590

3.6%
23,886,630

3.7%
24,762,748

3.7%
% from Measure 5
74%
77%
77%
79%
75%
713%
90%
Expenditures by Division
TCSD Operations
4,834,765
4,924,995

1.9%
5,051,521

4.5%
5,274,625

4.4%
5,507,918

4.4%
5,751,873

4.4%
6,006,990

4.4%
TCSD Maintenance
1,775,748
1,950,588

9.8°%
2,008,203

3.8%
2,067,793

3.0%
2,129,353

3.0%
2,292,951

3.0%
2,258,662

3.0%
Senior & Inclusive Services
932,749
1,165,743

25.D%
1,703,294

44.2%
1,769,361

3.8%
1,835,970

3.9%
1,906,221

3.8%
1,979,218

3.8%
Community Rec Center Operations
1,290,168
1,371,032

6.3%
1,243,832
-9.0%
1,291,363

3.9%
1,340,752

3.8°%
1,392,070

3.9%
1,445,394

3.81A
Special Events
1,564,986
1,234,280
-21.1%
1,374,415

13.6%
1,413,451

2.8%
1,453,729

2.8%
1,495,293

2.9%
1,539,189

2.9%
TCC Operations
369,249
485,984

32.0%
242,527
-50.1%
252,146

4.01%
262,249

4.0%
272,550

4.0%
283,365

4.01A
Museum & Cultural Arts
852,527
914,525

7.3%
834,747
-13.4%
866,127

3.8%
899,702

3.8%
932,549

3.8%
967,707

3.8%
Aquatics Operations
1,627,795
2,649,317

62.7%
2,589,635
-2.5%
2,689,688

3.9%
2,793,672

3.9%
2,901,743

3.9%
3,024,D64

3.9%
Sports
676,968
1,032,477

52.5%
996,706
-4.1%
1,024,023

3.9%
1,062,769

3.9%
1,103,031

3.9%
1,144,858

3.8%
Community Theater Operations
1,591,395
1,637,185

2.9%
1,683,992

3.7%
1,745,350

3.6%
1,809,D43

3.6%
1,875,161

3.7%
1,943,799

3.7%
Contract Classes
1,171,168
1,668,635

42.5%
1,849,925

11.0%
2,049,069

10.8%
2,110,168

3.0%
2,173,294

3.0%
2,238,520

3.0%
Homeless Outreach & Prevention
1,24D,845
1,661,154

33.9%
1,742,791

18.2%
1,790,350

2.7%
1,839,368

2.7%
1,889,895

2.7%
1,941,982

2.8%
Workforce Development
307,622
421,810

37.1%
-
-100.0%
-

0.0%
-

0.0°%
-

0.0%
-

0.0%
Total Expenditures
18,234,885
21,116,715

14.6%
21,311,5as

2.0%
22,232,326

4.3%
23,043,591

3.6%
23,836,630

3.7%
24,762,748

3.7%
%Growth in Expenditures

13.1%
Excess of Revenues
Over Expenditures
(292,703)
(489,325)
(34,971)
-
-
-
-
Beginning Fund Balance 916,999 624,296 134.971 10D,OOD 100,060 1DD,OOO 1DO,DDD Ending Fund Balance 624,296 134,971 100,000 100,000 100,000 100,000 100,000 Annual Operating Budget 1 67

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
68 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GENERAL FUNDS
001: GENERAL FUND 40,909,314 105,934,188 109,808,117 37,035,386 113,978,529 115,490,670 35,523,245 002: MEASURES FUND 50,449,274 38,970,861 62,071,599 27,348,536 40,028,469 42,771,911 24,605,094 006: FIRE FACILITY ACQUISITION FUND 4,701,785 156,221 - 4,858,006 I 173,287 - 5,031,293 110: COMMUNITY REINVESTMENT PROGRAM 9,468,092 - 8,410,972 1,057,120 - - 1,057,120 TOTAL GENERAL FUNDS 105,528,465 145,061,271 180,290,687 70,299,049 154,180,286 158,262,581 66,216,754

SPECIAL REVENUE FUNDS
100: GAS TAX FUND - 3,129,775 3,129,775 (0) 3,143,671 3,143,670 0 102: ROAD MAINTENANCE REHABILITATION ACCOUNT 3,808,926 2,907,946 6,098,426 618,446 3,037,266 2,827,154 828,559 (RMRA) FUND
103: STREET MAINTENANCE FUND 6,166,190 2,234,728 2,937,307 5,463,611 1,227,222 1,927,477 4,763,355 105: NPDES IN LIEU FEES FUND 631,753 20,162 385,850 266,065 19,603 114,150 171,518 106: UPTOWN TEMECULA NEW STREETS IN -LIEU FEES 1,391,118 45,142 500,857 935,402 48,440 - 983,842 120: DEVELOPMENT IMPACT FEES FUND 15,864,154 2,741,011 2,215,000 16,390,165 8,073,996 4,226,610 20,237,550 125: PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 1,033,678 212,523 175,000 1,071,201 215,436 25,000 1,261,637 140: COMMUNITY DEV BLOCK GRANT FUND (396,892) 647,215 246,160 4,163 612,781 616,944 (0) 145: TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND 634,403 20,552 550,852 104,103 22,054 - 126,157 150: AB 2766 MOTOR VEHICLE SUBVENTION FUND 439,743 165,073 582,275 22,541 166,694 63,200 126,035 160: SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND - 283,129 281,564 1,565 283,502 285,067 0 165: AFFORDABLE HOUSING FUND 12,171,616 1,167,925 5,614,187 7,725,354 488,091 590,828 7,622,617 170: MEASURE A FUND 8,367,804 4,567,687 10,174,612 2,760,879 4,242,301 6,027,160 976,020 198: PUBLIC ART FUND 280,483 12,636 113,226 179,893 11,641 - 191,534 TOTAL SPECIAL REVENUE FUNDS 50,392,975 18,155,502 33,005,090 35,543,388 21,592,697 19,847,260 37,288,825

TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)
190: TEMECULA COMMUNITY SERVICES DISTRICT FUND 624,497 20,627,390 21,116,715 135,172 21,276,617 21,311,588 100,200 191: TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT 1,324,223 243,442 - 1,567,665 47,370 20,000 1,595,035 FUND
192: TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 523,266 673,706 684,000 512,971 673,929 726,938 459,962 194: TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 945,198 10,772,785 11,101,603 616,380 10,774,926 11,268,756 122,550 195: TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 40,123 8,137 5,425 42,835 6,943 10,434 39,344 196: TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 372,780 273,452 320,001 326,232 277,341 318,076 285,497 197: TEMECULA LIBRARY FUND 255,327 1,194,848 1,334,578 115,598 1,429,930 1,445,528 100,000 501: SERVICE LEVEL"C"ZONE 1 SADDLEWOOD FUND 24,456 39,236 37,766 25,926 38,573 43,266 21,233 502: SERVICE LEVEL"C"ZONE 2 WINCHESTER CREEK FUND 138,874 51,276 40,646 149,504 47,188 61,547 135,145 503: SERVICE LEVEL"C"ZONE 3 RANCHO HIGHLANDS FUND 74,496 51,703 46,914 79,285 49,542 52,703 76,124 504: SERVICE LEVEL"C"ZONE 4 THE VINEYARDS FUND 7,497 6,766 8,296 5,966 6,577 7,796 4,748 505: SERVICE LEVEL"C"ZONE 5 SIGNET SERIES FUND 38,157 41,264 37,326 42,094 40,178 39,195 43,078 506: SERVICE LEVEL"C"ZONE 6 WOODCREST COUNTRY FUND 52,261 34,704 31,634 55,332 33,988 31,919 57,401 507: SERVICE LEVEL"C"ZONE 7 RIDGEVIEW FUND 17,574 16,349 15,224 18,698 15,845 15,380 19,163 508: SERVICE LEVEL"C"ZONE 8 VILLAGE GROVE FUND 133,220 144,787 137,214 140,793 140,940 136,905 144,828 509: SERVICE LEVEL"C"ZONE 9 RANCHO SOLANA FUND 29,567 7,005 5,143 31,429 6,123 5,172 32,380 510: SERVICE LEVEL"C"ZONE 10 MARTINIQUE FUND 17,347 10,784 9,477 18,654 10,283 9,977 18,960 511: SERVICE LEVEL"C"ZONE 11 MEADOWVIEW FUND 4,499 2,720 2,495 41724 2,591 2,495 4,819 512: SERVICE LEVEL"C"ZONE 12 VINTAGE HILLS FUND 99,290 102,166 95,603 105,8531 99,230 97,755 107,329 Annual Operating Budget 69

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

FUND BALANCE SUMMARY - ALL FUNDS
Beginning Revenues/ Expenditures/ Beginning Revenues/ Expenditures/ Ending Balance Transfers In Transfers Out Balance Transfers In Transfers Out Balance 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 513: SERVICE LEVEL"C"ZONE 13 PRESLEY DEVELOP FUND
514: SERVICE LEVEL"C"ZONE 14 MORRISON HOMES FUND
515: SERVICE LEVEL"C"ZONE 15 BARCLAY ESTATES FUND
516: SERVICE LEVEL"C"ZONE 16 TRADEWINDS FUND
517: SERVICE LEVEL"C"ZONE 17 MONTE VISTA FUND
518: SERVICE LEVEL"C"ZONE 18 TEMEKU HILLS FUND
519: SERVICE LEVEL"C"ZONE 19 CHANTEMAR FUND
520: SERVICE LEVEL"C"ZONE 20 CROWNE HILL FUND
521: SERVICE LEVEL"C"ZONE 21 VAIL RANCH FUND
522: SERVICE LEVEL"C"ZONE 22 SUTTON PLACE FUND
523: SERVICE LEVEL"C"ZONE 23 PHEASENT RUN
524: SERVICE LEVEL"C"ZONE 24 HARVESTON FUND
525: SERVICE LEVEL"C"ZONE 25 SERENA HILLS FUND
526: SERVICE LEVEL"C"ZONE 26 GALLERY TRADITION FUND
527: SERVICE LEVEL"C"ZONE 27 AVONDALE FUND
528: SERVICE LEVEL"C"ZONE 28 WOLF CREEK FUND
529: SERVICE LEVEL"C"ZONE 29 GALLERY PORTRAIT FUND
530: SERVICE LEVEL"C"ZONE 30 FUTURE ZONES FUND

TOTALTCSD

SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT

AGENCY (SARDA)
380: SARDA DEBT SERVICE FUND (34,291,959) 7,741,683 6,660,644 (33,210,921) TOTAL SARDA (34,291,959) 7,741,683 6,660,644 (33,210,921)

INTERNAL SERVICE FUNDS
300:

INSURANCE FUND
1,189,713
4,325,456
305:

WORKERS' COMPENSATION FUND
1,047,326
1,022,410
310:

VEHICLES AND EQUIPMENT FUND
5,405,642
616,327
320:

INFORMATION TECHNOLOGY FUND
2,390,214
6,908,584
325:

TECHNOLOGY REPLACEMENT FUND
3,106,290
2,197,366
330:

SUPPORT SERVICES FUND
145
430,405
335:

SUPPORT SERVICES REPLACEMENT FUND
385,998
40,088
340:

FACILITIES FUND
606,326
1,763,780
350:

FACILITY REPLACEMENT FUND
2,644,255
3,313,164

TOTAL INTERNAL SERVICE FUNDS
16,775,908
20,617,579

CAPITAL

IMPROVEMENT PROGRAM
210:

CAPITAL IMPROVEMENT PROGRAM FUND
9,244,218
208,418,797

TOTAL CAPITAL IMPROVEMENT PROGRAM
9,244,218
208,418,797
39,511
36,504
33,895
42,120
35,385
34,330
43,175
14,970
15,616
14,770
15,816
15,195
14,240
16,771
17,209
10,861
9,571
18,499
10,359
10,122
18,736
96,615
43,742
37,152
103,204
40,859
44,512
99,552
3,315
2,317
2,561
3,071
2,221
4,288
1,004
97,285
99,712
89,405
107,592
96,987
92,905
111,675
94,821
60,102
58,752
96,171
57,369
59,701
93,839
313,229
197,165
178,056
332,339
188,033
180,145
340,226
223,299
241,244
229,693
234,850
234,762
235,285
234,328
13,835
5,270
4,479
14,626
4,864
7,305
12,185
33,484
10,527
8,506
35,506
9,539
8,591
36,454
74,307
164,558
162,156
76,709
163,138
161,755
78,093
93,216
49,786
44,535
98,467
47,061
55,800
89,728
3,093
2,343
2,170
3,266
2,253
2,170 -
3,348
12,745
9,834
9,212
13,367
9,476
10,212
12,631
264,428
248,097
277,268
235,258
240,733
239,305
236,686
-
12,186
5,674
3,974
13,886
5,443
4,005
15,324
36,062
1,177
-
37,239
1,263
-
38,503
6,166,262
35,507,049
36,196,213
5,477,097
36,143,057
36,770,101
4,850,053
7,146,023 7,090,641 (33,155,539)
7,146,023 7,090,641 (33,155,539)
3,490,169
2,025,000
3,853,042
3,800,317
2,077,725
564,429
1,505,306
630,384
657,169
1,478,521
279,050
5,742,918 I
631,670
799,527 5,575,061
8,473,534
825,263
7,253,314
7,227,781
850,797
1,197,577
4,106,079
440,721
516,158
4,030,642
407,894
22,656
388,148
387,827
22,976
13,600
412,485
43,610
72,200
383,895
2,314,743
55,363
1,682,948
1,645,947
92,364
2,804,671
3,152,748
1,483,305
1,087,338
3,548,715
19,545,668 17,847, 818 16,407,141 16,194, 264 18, 060, 695 207,707,379 9,955,636 24,210,360 26,594,817 7,571,179
207,707,379 9,955,636 24,210,360 26,594,817 7,571,179
Grand Total 153,815,868 435,501,881 483,405,681 105,912,067 259,679,563 264,759,664 100,831,966 70 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS
Special
TCSD
TCSD Internal
General
Revenue/
Citywide
Service Service
Total
Fund
Debt Funds
Operations
Levels Funds SARDA
Revenues
Taxes and Franchises
Property Tax
12,164,898
12,164,898
Sales Tax
47,340,358
47,340,358
Sales Tax Sharing Agreement
(1,690,014)
(1,690,014)
Transactions And Use Tax
38,300,099
38,300,099
Franchise Fees
4,229,094
4,229,094
Transient Occupancy Tax
4,500,000
4,500,000
Special Tax (Measure C)
2,100,000
1,935,718
4,035,718
Gas Tax
5,979,858
5,979,858
Redevelopment Property Tax Fund
Distribution
6,980,394
6,980,394
PEG Fees
179,000
179,000
Total Taxes and Franchises
106,944,434
6,158,858
1,935,718
6,980,394
122,019,405
Licenses, Permits and Service Charges
Quimby Fees
1,066,460
1,066,460
Land Development
1,536,420
1,536,420
Police
103,335
103,335
Printing & Copies
10,792
10,792
Aquatics
271,966
271,966
Sports Leagues & Tournaments
222,693
222,693
Recycling Program
27,553
27,553
Development Fees
60,408
60,408
Public Art
1,850
1,850
Development Impact Fees
6,426,910
6,426,910
Business Licenses
286,526
286,526
Building
2,639,600
2,639,600
Planning
535,954
535,954
Fire
1,524,057
1,524,057
Contract Classes
1,200,000
1,200,000
Classes/Activities
72,927
72,927
Facility Rentals
366,954
366,954
Museum Admissions
97,335
97,335
Theater Admissions
297,000
297,000
Day Camps
116,721
116,721
Assessments
13,102, 768
13,102,768
Charges For Services
950
14,348,573
14,349,523
Total Licenses, Permits and Service Charges
6,687,250
7,495,220
2,656,388
13,130,321 14,348,573
44,317,751
Annual Operating Budget 1 71

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS
Special
TCSD
TCSD
Internal
General
Revenue/
Citywide
Service
Service
Total
Fund
Debt Funds
Operations
Levels
Funds
SARDA
Revenues
Fines and Forfeitures
Fines & Forfeitures
467,835
11,378
479,213
Total Fines and Forfeitures
467,835
11,378
479,213
Use of Money and Property
Lease/Rental Income
272,073
14,620
286,693
Other
92,416
92,416
Investment Interest
3,485,937
1,701,839
22,049
173,152
484,568
165,629
6,033,172
Total Use of Money and Property
3,850,426
1,701,839
36,669
173,152
484,568
165,629
6,412,281
Intergovernmental Revenues
Property Tax In Lieu Of VLF
11,586,423
11,586,423
Vehicle License Fees
126,748
126,748
Grants
78,032
127,037
205,069
Community Development Block Grant
612,781
612,781
AB2766 Motor Vehicle Subvention
150,000
150,000
Agency Trust Contribution
250,000
250,000
SLESF Grant
280,000
280,000
Measure A
3,944,000
3,944,000
Total Intergovernmental Revenues
11,791,203
5,236,781
127,037
17,155,021
Reimbursements
Capital Improvement Program
3,391,502
3,391,502
Pechanga IGA
473,557
473,557
Other Reimbursements
1,359,249
106,510
24,000
1,489,759
Total Reimbursements
5,224,308
106,510
24,000
5,354,818
Operating Transfers In
Operating Transfers In
5,428,738
5,428,738
Contribution From Measure S
13,548,319
1,000,000
17,864,483
1,550,000
33,962,802
Total Operating Transfers In
18,977,057
1,000,000
17,864,483
1,550,000
39,391,540
Miscellaneous
64,485
95,401
6,000
165,886
Total Miscellaneous
64,485
95,401
6,000
165,886
Total Revenues and Other Sources
154,006,999
21,592,697
22,706,547
13,436,510
16,407,141
7,146,023
235,295,916
72 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS
General Special TCSD TCSD Internal
Fund/ Revenue/ Citywide Service Service
Measure S Debt Funds Operations Levels Funds SARDA
Taxes and Franchises
106,944,434
Licenses, Permits and Service Charges
6,687,250
Fines and Forfeitures
467,835
Use of Money and Property
3,850,426
Intergovernmental Revenues
11,791,203
Reimbursements
5,224,308
Operating Transfers In
18,977,057
Miscellaneous
64,485
Total Revenues and Other Sources
Total Revenues less Interfund Transfers*
* Interfund Transfers are eliminated at the Citywide level 6,158,858 1,935,718 6,980,394
7,495,220 2,656,388 13,130,321 14,348,573
11,378
1,701,839 36,669 173,152 484,568 165,629
5,236,781 127,037
106,510 24,000
1,000,000 17,864,483 1,550,000
95,401 6,000
Maior Revenue Sources
Reimbursements Operating Transfers
2% In Miscellaneous
17% 0%
Intergov
Revi
Use of
Money
and
Property
3%
Fines an
Forfeitur
0%
Licenses, Permits
and Service Charges
19%
7 Total
Revenues
122,019,405
44,317,751
479,213
6,412,281
17,155,021
5,354,818
39,391,540
165,886
axes and
anchises
52 Annual Operating Budget 1 73

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

MAJOR REVENUE SOURCES
All revenue estimates are developed using historical trend data and estimates of commercial and residential construction, assessed valuation, retail sales, population, changes in consumer price indexes, and general economic factors. Property tax revenue estimates are derived with input from an outside consultant, and considers estimated changes on the tax levy, property sales, appeals, and real property improvements. Sales tax revenue estimates are also derived with the input from an outside consultant, and considers factors such as new and closed retailers, business types, population changes, price fluctuations and the general economy. Licenses, permits, and service charges are estimated using building forecasts of the development community, changes in consumer price indexes, established fees for services and program, and historical trend data. The revenue estimates for Transient Occupancy Taxes are derived using average room rates, projected changes in room occupancy, special events, and feedback from Visit Temecula Valley.

Taxes and Franchises — 52% of Total Revenue
Sales and Use Tax: The largest revenue source for the City of Temecula is Sales and Use Tax, including the City's Transactions and Use Tax, Measure S. In accordance with the California Revenue and Taxation Code, the State of California imposes a 7.25% sales and use tax on all taxable sales in the City, of which 1% is allocated to the City of Temecula. In 2016, City residents approved Measure S to establish an additional one percent Transactions and Use Tax revenue. This new tax became effective April 1, 2017. The City established the Measure S Fund to account for the fiscal activities related to this new revenue source. In addition, Riverside County voters approved Measure A in 1988, and again in 2002, to establish a half -cent Sales Tax dedicated to transportation funding. Measure A revenue is recorded in a separate Special Revenue Fund and is categorized as Intergovernmental Revenues. Currently, the total Sales Tax rate within the City is 8.75%
The City of Temecula serves as a regional shopping hub with the Promenade Mall, Old Town, and an Auto Mall.

Sales and Use Tax revenue is projected to increase by 2.5% over the prior fiscal year to $47,340,358.

The City continues to maintain a strong and diverse sales tax base by promoting economic development in areas such as manufacturing, light industrial, and retail businesses. Temecula continues to exceed the State, County, and surrounding areas with respect to sales per capita.

The Measure S Transactions and Use Tax is estimated to yield $38,300,099 which is a 2.5% increase over the prior year, consistent with projected growth in Sales Tax. Historically, Measure S receipts have averaged 80% of Sales Tax receipts.

Property Tax: Per Proposition 13, passed by California voters in 1978, the ad valorem Property Tax is assessed at 1% of the assessed valuation of real property, as determined by the County Assessor's Office. The City is projecting Property Tax revenues to increase by 4.4% to a total of $12,164,898 due to the steady housing market, which still shows signs of low inventory and increasing home values.

Transient Occupancy Tax (TOT): The City of Temecula collects an 8% tax on the amount of transient (30 days or less) lodging rentals. TOT revenue is expected to increase by 1.6% over the prior year, with a total of $4,500,000. 74 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

MAJOR REVENUE SOURCES
Licenses, Permits and Service Charges —19% of Total Revenue The California Government Code and State Constitution authorize the City to assess certain license and permit fees as a means of recovering the cost of regulating various activities. Examples include building permits and business licenses. The City also assesses service charges for the Community Services District on recreation programs and facility rentals. Charges for Services also reflect the allocation of costs to departments from the Internal Service Funds, which include Workers' Compensation, Vehicle and Equipment Replacement, Information Technology, Technology Replacement, Support Services, Support Services Replacement, Facility Operations, and Facility Replacement.

In Fiscal Year 2025-26 Licenses, Permits and Service Charges revenue is projected to be $44,317,751. This category varies from year-to-year, primarily due to development -related revenue.

Intergovernmental Revenues — 7% of Total Revenue
Intergovernmental Revenues reflect revenue received from other governmental agencies, including: Property Tax distributions from the County for the Successor Agency to the Redevelopment Agency for administration ($250,000); Vehicle License Fees ($126,748); Property Tax in Lieu of Vehicle License Fees ($11,586,426); Public Safety, Recycling, and Community Development Block Grants ($1,247,850); and Measure A transportation revenue ($3,944,000). The estimated intergovernmental revenue is projected to be $17,155,021.

Operating Transfers —17% of Total Revenue
This category consists of operating transfers between funds. The estimated operating transfers for Fiscal Year 2025- 26 totals $39,391,540. Significant transfers from the Measure S Fund include $17,864,483 to TCSD Operations and $13,548,319 to the General Fund to support operations within these funds. Additionally, Measure S transfers include deposits into the City's Asset Management Funds in the amount of $2,250,000 to supplement the existing balances in these replacement funds. Other significant transfers include monies from the Gas Tax Fund to the General Fund in the amount of $3,143,671. Gas tax revenues are required to be recorded in a Special Revenue Fund and then transferred to support street and road maintenance costs reflected in the General Fund. Supplemental Law Enforcement Services grant revenue of $285,067 is transferred to the General Fund to support law enforcement expenditures. Finally, a $2 million transfer from the City's Pension Fund is reflected in accordance with the Debt/Liability Paydown Strategy.

Total Revenue Sources for Fiscal Year 2025-26, excluding Interfund Transfers, are projected to be $195,904,346 across all funds.

Annual Operating Budget 1 75

CITY OF TEMECULA

GENERAL FUND
The General Fund is the main operating fund for the City of Temecula. It is used to account for all financial resources for the City that are not restricted to a special purpose and otherwise required to be accounted for in another fund. The General Fund provides the resources necessary to sustain the day-to-day activities and pays for all administrative and operating expenditures.
76 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GENERAL FUND REVENUES
As illustrated in the chart below, Sales and Use Tax is the largest revenue source for the General Fund and represents 40% of total General Fund revenue. This is due to regional retail destinations within Temecula such as the Promenade Mall, Old Town and the Auto Mall. Sales and Use Tax revenue is projected to increase by 2.5% over the prior year as the local economy is expected to grow at a modest pace.

Fiscal Year 2025-26 General Fund Revenue - $113,978,529 Prop. Tax in Lieu of
VLF
10%
Property Ta)
11%
Sales Tax
40 %
Franchise Fees
4%
TOT
4% Measure C
2%
Licenses/Permits
6%
!Measure S
12%
Transfers In
5%
Reimbursements
ther 4%
2%
Property Taxes are the second largest source of revenue for the General Fund and comprise11% of total General Fund revenue. These revenues primarily include Secured and Unsecured Property Taxes, property transfer taxes, and residual Redevelopment Property Tax Trust Fund (RPTTF) distributions. Property tax revenues are projected to increase 4.4% over the prior fiscal year to $12,164,898. This growth is based on an anticipated increase in assessed valuation of property within the City.

Operating Transfers In from Measure S comprise 12% of total General Fund revenues. This one -cent Transactions and Use Tax is accounted for in a separate fund, and a portion is transferred into the General Fund to support public safety. The transfer of $13,548,319 will fund the continued cost of eleven sworn Sheriff's Deputies to maintain the current officer -per -resident ratio of 1:1000. Additionally, Measure S funds the staffing of Fire Station No. 95 which opened January 1, 2019, the fire inspection program, future vehicle replacement costs for a new Fire Ladder Truck, four inspection vehicles and the ongoing cost to maintain fire department personnel staffing levels at four -persons - per -engine.

Property Tax in Lieu of Vehicle License Fees comprises 10% of total General Fund revenue. This revenue source is allocated to cities based on overall City assessed property valuation. Property Tax in Lieu of Vehicle License Fee revenue is expected to increase by 4.2% over the prior fiscal year to $11,586,423. This change is based on an anticipated increase in assessed valuation of property within the City of Temecula.

Annual Operating Budget 1 77

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GENERAL FUND REVENUES
Licenses, Permits, and Charges for Services comprise 6% of total General Fund revenues and include Business License and Permit fees. This category is projected to increase by 13% over the prior year to $6,623,241, due to ongoing residential development projects within the City combined with the full implementation of the new User Fee Schedule.

Franchise Fees comprise 4% of total General Fund revenues. Franchise fees are the "rent" or "reimbursement" that utility and cable providers pay for the use of the public's right-of-way. The City of Temecula receives Franchise Fees from cable, natural gas, electricity and refuse collection operators. These revenues are projected to decrease 7.4% from the prior year to $4,229,094, due to reductions in natural gas rates and the continued decline in cable subscribers.

Transient Occupancy Tax (TOT) is an 8% tax collected by the City on the amount of all transient (30 days or less) lodging rentals. This tax comprises 4% of General Fund Revenues. TOT revenue is projected to increase slightly by

1.6% to $4,500,000.

Operating Transfers In comprise 5% of total General Fund revenues. This category includes the operating transfer of Gas Tax revenue ($3,143,671), grant funds from the Supplemental Law Enforcement Services Fund ($285,067), and a transfer from the City's Pension Trust of $2,000,000 to support the Debt/Liability Paydown Strategy.

Reimbursements comprises 4% of total General Fund revenue and consists of reimbursement revenue from the Capital Improvement Program for administration and funding received from the Pechanga Tribe for a dedicated Sheriff's Deputy.

Special Tax (Measure C) comprises 2% of total General Fund revenues. This category is projected to increase by 9% over the prior year to $2,100,000, as new residential developments are assessed this parcel tax. Measure C is a special tax charged to property owners in order to finance the operation, maintenance and servicing of public parks and recreational facilities, recreational and community services programs, median landscaping, arterial street lights and traffic signals. The maximum amount for each fiscal year is set by ordinance at $74.44 per single-family residential dwelling unit, $55.83 per multi -family residential dwelling unit, $148.88 per acre of vacant property in a residential zone, $297.76 per acre of vacant property in a non-residential zone, $446.64 per acre of non-residential improved property, and $37.22 per acre for agriculture uses. Measure C is allocated 50% in the General Fund and 50% in the Community Services District.

Other Revenue comprises 2% of total General Fund revenue and consists primarily of smaller miscellaneous revenue sources.
78 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE BY SOURCE
001- GENERAL FUND
2025-2026
%
2023-2024
2024-2025
Proposed
Increase/
Increase/
Description
Actuals
Current Budget
Budget
(Decrease)
Decrease
Taxes and Franchises

PROPERTY TAX
11,231,801
11,652,749
12,164,898
512,149

4.4%

SALES TAX
46,566,619
46,185,715
47,340,358
1,154,643

2.5%

SALES TAX SHARING AGREEMENT
(1,556,194)
(1,640,791)
(1,690,014)
(49,223)
-3.0%

FRANCHISE FEES
4,343,507
4,566,382
4,229,094
(337,288)
-7.4%

TRANSIENT OCCUPANCYTAX
4,998,676
4,428,313
4,500,000
71,687

1.6%

SPECIAL TAX (MEASURE C)
1,908,085
1,926,088
2,100,000
173,912

9.0%
Licenses, Permits and Service Charges

LAND DEVELOPMENT
1,644,058
1,357,460
1,536,420
178,960

13.2%

PARKS MAINTENANCE
20,252
1,399
-
(1,399)
-100.0%

SHERIFF'S OFFICE
89,701
87,140
103,335
16,195

18.6%

DEVELOPMENT FEES
68,659
67,548
60,408
(7,140)
-10.6%

BUSINESS LICENSES
283,406
280,908
286,526
5,618

2.0%

BUILDING
2,959,875
2,391,800
2,639,600
247,800

10.4%

PLANNING
571,434
535,954
535,954
-

0.0%
FIRE
1,337,931
1,224,057
1,524,057
300,000

24.5%

CHARGES FOR SERVICES
324
950
950
-

0.0%
Fines and Forfeitures

FINES & FORFEITURES
579,995
411,457
467,835
56,378

13.7%
Use of Money and Property

LEASE/RENTAL INCOME
264,422
245,941
272,073
26,132

10.6%
OTHER
171,359
179,000
92,416
(86,584)
-48.4%

INVESTMENT INTEREST
2,549,544
1,324,449
1,757,567
433,118

32.7%
Intergovernmental Revenues

PROPERTY TAX IN LIEU OF VLF
10,532,198
11,078,042
11,586,423
508,381

4.6%

VEHICLE LICENSE FEES
135,651
124,848
126,748
1,900

1.5%
GRANTS
140,557
164,253
78,032
(86,221)
-52.5%
Reimbursements

CAPITAL IMPROVEMENT PROGRAM
3,172,243
3,180,326
3,391,502
211,176

6.6%

PECHANGA IGA
404,061
422,244
473,557
51,313

12.2%

OTHER REIMBURSEMENTS
1,118,731
1,278,900
1,359,249
80,349

6.3%
Operating Transfers In

OPERATING TRANSFERS IN
10,392,823
8,411,339
5,428,738
(2,982,601)
-35.5%

CONTRIBUTION FROM MEASURES
5,230,205
5,995,925
13,548,319
7,552,394
126.0%
Miscellaneous

MISCELLANEOUS
29,802
51,792
64,485
12,693

24.5%
Total Revenues and Other Sources
109,189,725
105,934,188
113,978,529
8,044,341

7.6%
Annual Operating Budget 1 79

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL
001- GENERAL FUND
Fund 2023-2024 2024-2025 2025-2026 Increase/ %Increase/ 001 Description Actuals Current Budget Proposed Budget (Decrease) Decrease 161- PLANNING 609,014 585,404 585,404 - 0.0%
162 - BUILDING & SAFETY 2,910,993 2,300,000 2,547,800 247,800 10.8% 163 - LAND DEVELOPMENT 1,650,654 1,356,522 1,536,522 180,000 13.3% 164 - PUBLIC WORKS 2,300 850 350 (500) -58.8%
167 - PARKS MAINTENANCE 2,031,119 2,012,270 2,194,142 181,872 9.0% 170 - SHERIFF'S OFFICE 516,005 506,354 538,154 31,800 6.3% 171- FIRE 1,513,704 1,363,969 1,663,069 299,100 21.9%
199 - NON -DEPARTMENTAL
4008 RESIDUAL RPTTF DISTRIBUTION 236,401 250,000 253,600 3,600 1.4% 4010 PROPERTY TAX - SECURED 9,205,616 9,915,255 10,379,350 464,095 4.7% 4012 PROPERTY TAX - UNSECURED 458,231 516,313 536,966 20,653 4.0% 4013 SUPPLEMENTAL TAX -AB2345 467,395 263,925 274,482 10,557 4.0% 4016 PROPERTY TRANSFER TAX 797,057 637,000 650,000 13,000 2.0% 4018 FRANCHISE FEES 4,343,507 4,566,382 4,229,094 (337,288) -7.4% 4020 TRANSIENT OCCUPANCY TAX 4,998,676 4,428,313 4,500,000 71,687 1.6% 4024 SALES & USE TAX - STATE 46,566,619 46,185,715 47,340,358 1,154,643 2.5% 4025 GRANTS - 125,321 40,000 (85,321) -68.1%
4026 SALES TAX SHARING AGREEMENT (1,556,194) (1,640,791) (1,690,014) (49,223) -3.0% 4028 HOMEOWNER PROPERTY TAX RELIEF 67,102 70,256 70,500 244 0.3% 4043 PROPERTY TAX IN LIEU OF VLF 10,532,198 11,078,042 11,586,423 508,381 4.6% 4046 MOTOR VEHICLE IN LIEU -STATE 135,651 124,848 126,748 1,900 1.5% 4047 VEHICLE CODE FINES 327,102 182,518 233,676 51,158 28.0% 4056 BUSINESS LICENSE 283,406 280,908 286,526 5,618 2.0% 4057 PASSPORT PROCESSING - 20,000 20,000 - 0.0%
4060 MISCELLANEOUS NON-TAXABLE 126,206 125,000 28,082 (96,918) -77.5% 4061 RETURNED CHECK FEE 75 150 - (150)-100.0%
4062 RECOVERY OF PRIOR YEAR EXPENSE 11,950 3,000 1,500 (1,500) -50.0% 4064 RIGHT OF WAY ADVERTISING 1,050 2,142 2,185 43 2.0% 4065 INVESTMENT INTEREST 1,874,770 1,324,449 1,757,567 433,118 32.7% 4070 CASH OVER & SHORT (3,213) - - - 0.0%
4075 RENTAL INCOME 86,105 165,000 174,000 9,000 5.5%
4076 REIMBURSEMENTS 178,299 160,000 163,200 3,200 2.0%
4078 REIMBURSEMENT-PECHANGA IGA 404,061 422,244 473,557 51,313 12.2% 4084 REIMBURSEMENTS FROM CIP 3,172,243 3,180,326 3,391,502 211,176 6.6% 4094 LEASE INCOME 83,172 7,959 7,501 (458) -5.8%
4162 ELECTRIC VEHICLE CHARGING FEES 16,727 26,000 40,800 14,800 56.9% 80 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL
001- GENERAL FUND
Fund 2023-2024 2024-2025 2025-2026 Increase/ %Increase/ 001 Description Actuals Current Budget Proposed Budget (Decrease) Decrease 4168 INTEREST INCOME - LEASES 9,853 - - 0.0%
4177 MSHCP ADMIN FEE 324 950 950 - 0.0%
4181 REIMBURSEMENT SERVICES CFD 635,475 885,330 961,879 76,549 8.6% 4300 STATE MANDATED COST 162,169 50,000 50,000 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 677,956 - - 0.0%
4550 GAIN ON DISPOSAL OF ASSETS 6,269 15,000 15,000 - 0.0% 4941 AB1379 COLLECTION STATE $4 FEE 26,651 30,000 30,600 600 2.0% 6002 TRANSFER IN FROM MEASURES FUND 5,230,205 5,995,925 13,548,319 7,552,394 126.0% 6100 TRANSFER IN FROM GAS TAX FUND 3,075,185 3,129,775 3,143,671 13,896 0.4% 6160 TRANSFER IN FROM SUPPLEMENTAL 317,639 281,564 285,067 3,503 1.2%

LAW ENFORCEMENT SERVICES FUND
6701 TRANSFER IN FROM PENSION RATE 7,000,000 5,000,000 2,000,000 60.0% STABILIZATION FUND (3,000,000)
TOTAL GENERAL FUND 109,189,725 105,934,188 113,978,529 8,044,341 7.6% Annual Operating Budget 1 81

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
001- GENERAL FUND SUMMARY
2025-26
%
2023-24
2024-25
Proposed
Increase/
Increase/
Description
Actuals
Current Budget
Budget
(Decrease)
(Decrease)
Revenues by Category
Taxes and Franchises
67,492,494
67,118,456
68,644,335
1,525,879

2.27%
Licenses, Permits and Service Charges
6,975,640
5,947,216
6,687,250
740,034

12.44%
Fines and Forfeitures
579,995
411,457
467,835
56,378

13.7%
Use of Money and Property
2,985,325
1,749,390
2,122,056
372,666

21.3%
Intergovernmental Revenues
10,808,406
11,367,143
11,791,203
424,060

3.73%
Reimbursements
4,695,035
4,881,470
5,224,308
342,838

7.02%
Operating Transfers In
15,623,028
14,407,264
18,977,057
4,569,793

31.72%
Miscellaneous
29,802
51,792
64,485
12,693

24.51%
Total Operating Revenues
109,189,725
105,934,188
113,978,529
8,044,341

7.59%
Expenditures by Department
City Council
584,223
733,180
742,448
9,268

1.26%
Community Support
120,000
125,000
115,000
(10,000)
-8.0%
City Manager
2,067,960
2,704,600
2,796,478
91,878

3.4%
Economic Development
1,776,314
1,934,943
1,927,830
(7,114)
-0.37%
Emergency Management
517,975
725,598
786,552
60,953

8.4%
City Clerk
1,478,068
1,720,159
1,655,449
(64,709)
-3.76%
City Attorney
922,084
1,115,000
1,115,000
0 0.0%
Finance
3,912,440
4,246,920
4,467,954
221,034

5.2%
Human Resources
1,825,985
2,227,631
2,388,640
161,008

7.23%
Planning
3,118,651
3,704,936
4,032,039
327,102

8.83%
Building & Safety
4,718,248
5,147,948
5,325,169
177,221

3.44%
Land Development
2,162,642
2,590,073
2,333,802
(256,271)
-9.89%
Public Works
7,845,775
8,407,337
8,429,190
21,853

0.26%
Cip Public Works
3,456,647
3,533,695
3,768,335
234,640

6.64%
Parks Maintenance
5,764,177
6,365,642
6,467,042
101,400

1.59%
Police
40,785,303
43,630,453
48,474,402
4,843,949

11.1%
Fire
10,856,217
11,083,561
13,923,013
2,839,452

25.62%
Animal Control
444,156
441,582
777,820
336,238

76.14%
Non Departmental:

P.E.R.S. Retirement
0 (2,710,437)
(3,477,724)
(767,287)

28.31%
Property Tax Admin Fees
54,656
90,000
93,600
3,600

4.0%
Other Outside Services
1,670
0 0
0 0.0%
Staffing Continuity Reserve
0 594,100
200,000
(394,100)
-66.34%
PIERS Replacement Benefit
85,822
90,000
91,800
1,800

2.0%
Retiree Medical Contribution
4,252,733
298,000
289,000
(9,000)
-3.02%
Unfunded Accrued Liability Contribution
14,538,003
7,913,492
8,267,833
354,341

4.48%
Total Operating Expenditures
111,289,747
106,713,414
114,990,670
8,277,256

7.76%
Excess of Revenues Over (Under) Expenditures
(2,100,022)
(779,225)
(1,012,141)
(232,915)

29.89%
Fund Description
The General Fund is the main operating fund for the City of Temecula. It is used to account for all financial resources for the City that are not restricted to a special purpose and otherwise required to be accounted for in another fund. The General fund provides the resources necessary to sustain the day-to-day activities and pays for all administrative and operating expenditures. 82 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
001- GENERAL FUND SUMMARY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) (Decrease) Excess of Revenues Over (Under) Expenditures
Transfer Out to Fire Facility Acquisition Fund
Transfer Out to CIP Fund
Transfer Out to Insurance Fund
Transfer Out to Workers Comp Fund
Transfer Out to PARS
Total Transfers Out/One-Time Payments
Fund Balance, Beginning of Year
Fund Balance, End of Year
Detail of Fund Balance
Committed To:

Economic Uncertainty Reserve (20%)
Secondary Reserve (5%)
Pechanga IGA
Assigned To:

Capital Projects
Unassigned:
(2,100,022) (779,225) (1,012,141) (232,915) 29.89%
1,500,000
0 0
0 0.0%
(206,957)
1,485,353
500,000
(985,353)
-66.34%
0 1,172,672
0 (1,172,672)
-100.0%
0 436,678
0 (436,678)
-100.0%
2,000,000
0 0
0 0.0%
3,293,043
3,094,703
500,000
(2,594,703)
-83.84%
46,302,379 40,909,314 37,035,386 (3,873,928) -9.47%
40,909,314 37,035,386 35,523,245 (1,512,141) -4.08%
18,699,549 19,759,984 21,344,567 (1,584,583)
4,674,887 4,939,996 5,336,142 (396,146)
422,244 443,356 465,524 (22,168)
1,266,443 500,000
15,846,191 11, 392,050
40,909,314 37,035,386
0 500,000
8,377,012 3,015,038
35,523,245 (1,512,141)

8.02%

5.0%
-100.0%
-26.47%
-4.08%
Annual Operating Budget 1 83

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
002 - MEASURE S FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Taxes and Franchises

TRANSACTIONS AND USE TAX
37,673,402
37,365,950
38,300,099
934,149

2.5%
Use of Money and Property

INVESTMENT INTEREST
2,325,092
1,604,911
1,728,370
123,459

7.7%
Revenues/Other Sources
39,998,494
38,970,861
40,028,469
1,057,608

2.7%
Expenditures by Category

TRANSFERS
35,541,559
62,071,599
42,771,911
(19,299,688)
-31.1%
Expenditures/Other Financing Uses
35,541,559
62,071,599
42,771,911
(19,299,688)
-31.1%
Net Revenues
4,456,935
(23,100,738)
(2,743,442)
20,357,296
-18.1%
Fund Balance, Beginning of Year
45,992,339
50,449,274
27,348,536
(23,100,738)
-45.8%
Fund Balance, End of Year
50,449,274
27,348,536
24,605,094
(2,743,442)
-10.0%
Fund Description
Measure S, approved by the voters on November 8, 2016, established a one -cent Transactions and Use Tax for the City. The measure was approved based on the commitment to maintain 9-1-1 emergency response times, prevent cuts to local paramedic/police/fire protection, school safety patrols, youth/after-school, senior and disabled services; improve freeway interchanges/reduce traffic and provide for other general services.

Analysis/Comments
Measure S revenue is expected to increase by 2.7% due to anticipated local economic growth and investment interest earnings. Expenditures are decreasing 31.1% from the prior year due to a decrease in Capital Improvement transfers of $25.5 million. Overall, expenditures are in line with the Council's Appropriation Guidelines for Measure S and reflect transfers to fund Public Safety ($13.7 million), Asset Management ($2.3 million), Capital Improvements ($8.8M), and General/Community Services ($17.9 million). 84 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
006 - FIRE FACILITY ACQUISITION FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 172,262
156,221 173,287 17,066 10.9%
Operating Transfers In
OPERATING TRANSFERS IN 1,500,000
- - - 0.0%
Revenues/Other Sources 1,672,262
156,221 173,287 17,066 10.90/0
Net Revenues 1,672,262
156,221 173,287 17,066 10.9%
Fund Balance, Beginning of Year 3,029,523
4,701,785 4,858,006 156,221 3.3%
Fund Balance, End of Year 4,701,785
4,858,006 5,031,293 173,287 3.6%
Fund Description
This fund was established to accumulate resources necessary to acquire property for a future Fire Station, construct new Fire Station or refurbish existing Fire Stations.

Analysis/Comments
Revenue is expected to increase by 10.9% due to anticipated investment interest earnings. The Operating Transfer In comes from available General Funds and will accumulate over time in order to accumulate funds to meet the facility needs of the Fire Department. No Operating Transfer In is expected due to adequate fund balance.

Annual Operating Budget 1 85

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
110 - COMMUNITY REINVESTMENT PROGRAM SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Operating Transfers In

OPERATING TRANSFERS IN
37,706
-

0.0%
Revenues/Other Sources
37,706
-
- -

0.00/0
Expenditures by Category

SALARIES & BENEFITS
137,587
342,413
- (342,413)
-100.0%

OPERATIONS & MAINTENANCE
1,499,325
1,722,211
- (1,722,211)
-100.0%

TRANSFERS
78,652
6,346,348
- (6,346,348)
-100.0%
Expenditures/Other Financing Uses
1,715,564
8,410,972
- (8,410,972)
-100.00/0
Net Revenues
(1,677,858)
(8,410,972)
- 8,410,972
-100.0%
Fund Balance, Beginning of Year
11,145,950
9,468,092
1,057,120 (8,410,972)
-88.8%
Fund Balance, End of Year
9,468,092
1,057,120
1,057,120

0.0%
Fund Description
This fund was established in Fiscal Year 2021-22 to provide various community grants to support the local economy in its recovery from the COVID-19 global pandemic. Available General Fund balance was transferred into this fund to establish this new program.

Analysis/Comments
No revenue is expected in this fund for the current year. Previously, this fund reflects the transfer in of available General Fund dollars to establish and support the local economy's recovery from the global pandemic. The Council approved six funding categories, including:
- Business Support ($3,080,000)
- Non -Profit Support ($1,000,000)
- Homeless Services ($1,000,000)
- Housing Assistance ($5,500,000)
- Behavioral Health Services ($1,500,000)
- Higher Education/Workforce Development ($1,000,000)
Funding will be appropriated throughout the fiscal year as the programs within each category are developed. An additional $1 million in CRP funds remains unallocated, subject to Council approval. Expenditures are expected to decrease 100.0% due to no additional funding allocations over the prior year.
86 1 Annual Operating Budget

CITY OF TEMECULA

SPECIAL REVENUE AND DEBT

SERVICE FUNDS
Special Revenue Funds are used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law.

Debt Service Funds are used to account for the resources necessary to pay principle and interest payments on general long-term debt obligations of the City and related entities.

Annual Operating Budget 1 87

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL

SPECIAL REVENUE & DEBT SERVICE FUNDS
2025-
2023-
2024-
2026
2024
2025
Proposed
Increase/
Increase/
Description
Actuals
Current Budget
Budget
(Decrease)
Decrease
100 - GAS TAX FUND
4065

INVESTMENT INTEREST
39,148
28,554
42,802
14,248

49.9%
4545
GASB 31 - FMV ON INVESTMENTS
3,885
-
-
-

0.0%
4700
GAS TAX 2106
428,714
436,975
440,417
3,442

0.8%
4701
GAS TAX 2105
668,130
693,111
698,529
5,418

0.8%
4702
GAS TAX 2107
903,877
945,717
953,335
7,618

0.8%
4704
GAS TAX 2107.5
10,000
10,000
10,000
-

0.0%
4706
GAS TAX 2103
1,021,430
1,015,418
998,588
(16,830)
-1.7%

TOTAL GAS TAX FUND
3,075,185
3,129,775
3,143,671
13,896

0.4%
102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA) FUND 4065 INVESTMENT INTEREST 83,286 137,320 158,277 20,957 15.3% 4545 GASB 31 - FMV ON INVESTMENTS 29,381 - - - 0.0%
4709 RMRA-ROAD MAINTENANCE REHABILITATION ACT 2,778,429 2,770,626 2,878,989 108,363 3.9% TOTAL RMRA FUND 2,891,096 2,907,946 3,037,266 129,320 4.4% 103 - STREET MAINTENANCE FUND
4065 INVESTMENT INTEREST
167,475
204,728
227,222 22,494

11.0%
4545 GASB 31 - FMV ON INVESTMENTS
57,178
30,000
- (30,000)
-100.0%
6002 TRANSFER IN FROM MEASURE S FUND
2,000,000
2,000,000
1,000,000 (1,000,000)
-50.0%

TOTAL STREET MAINTENANCE FUND
2,224,652
2,234,728
1,227,222 (1,007,506)
-45.1%
105 - NPDES IN LIEU FEES FUND
4065 INVESTMENT INTEREST
21,811
20,162
19,603
(559)
-2.8%
4545 GASB 31 - FMV ON INVESTMENTS
6,927
-
-
-

0.0%

TOTAL NPDES IN LIEU FEES FUND
28,738
20,162
19,603
(559)
-2.8%
106 - UPTOWN TEMECULA NEW STREETS IN -LIEU FEES
4065 INVESTMENT INTEREST
45,621
45,142
48,440
3,298

7.3%
4259 UPTOWN TEMECULA NEW STREETS IN LIEU FEES
424,218
-
-
-

0.0%
4545 GASB 31 - FMV ON INVESTMENTS
15,518
-
-
-

0.0%

TOTAL UPTOWN TEMECULA NEW STREETS IN-
485,358
45,142
48,440
3,298

7.3%

LIEU FEES
120 - DEVELOPMENT IMPACT FEES (DIF) FUND
4051 CIP - DIF-OPEN SPACE AND TRAILS
4065 INVESTMENT INTEREST
4240 CIP - DIF - QUIMBY
4242 CIP - DIF-STREET IMPROVEMENTS
4243 CIP - DIF-TRAFFIC SIGNALS
4244 CIP - DIF-PARK & REC IMPROVEMENTS
4245 CIP - DIF-CORPORATE FACILITIES
4246 CIP - DIF-FIRE PROTECTION FACILITIES
4247 CIP - DIF-LIBRARY FACILITIES
4256 CIP - DIF-POLICE FACILITIES
4545 GASB 31 - FMV ON INVESTMENTS

TOTAL DEVELOPMENT IMPACT FEES FUND
125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND
4039 PEG FEES REVENUES
4065 INVESTMENT INTEREST
4545 GASB 31 - FMV ON INVESTMENTS

TOTAL PUBLIC EDUCATION & GOVERNMENT
(PEG) FUND
31,739
117,000
130,564
13,564

11.6%
466,595
526,011
580,626
54,615

10.4%
478,177
1,085,000
1,066,460
(18,540)
-1.7%
1,881,466
240,000
4,405,584
4,165,584
1735.7%
274,086
40,000
626,330
586,330
1465.8%
957,727
400,000
447,944
47,944

12.0%
254,984
75,000
331,107
256,107
341.5%
57,115
13,000
133,581
120,581
927.5%
237,139
210,000
162,022
(47,978)
-22.8%
216,136
35,000
189,778
154,778
442.2%
145,509
-
-
-

0.0%
5,000,674
2,741,011
8,073,996
5,332,984
194.6%
147,940 179,000 179,000 - 0.0%
33,384 33,523 36,436 2,913 8.7%
10,716 - - - 0.0%
192,040 212,523 215,436 2,913 1.4%
88 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL

SPECIAL REVENUE & DEBT SERVICE FUNDS
2025-
2023-
2024-
2026
2024
2025
Proposed
Increase/
Increase/
Description
Actuals
Current Budget
Budget
(Decrease)
Decrease
140 - COMMUNTIY DEVELOPMENT BLOCK GRANT (CDBG)
FUND
4081 COMM DEVELOPMENT BLOCK GRANT
1,495,462
647,215
612,781
(34,434)
-5.3%
4169 CDBG-CV2
663,670
-
-

0.0%

TOTAL COMMUNITY DEV BLOCK GRANT FUND
2,159,133
647,215
612,781
(34,434)
-5.3%
145 - TEMECULA ENTERGY EFFICIENCY ASSET (TEAM) FUND
4065 INVESTMENT INTEREST 24,846 20,552 22,054 1,502 7.3% 4545 GASB 31 - FMV ON INVESTMENTS 7,533 - - - 0.0%
TOTAL TEAM FUND 32,379 20,552 22,054 1,502 7.3%
150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND
4048 AB 2766 REVENUES
4065 INVESTMENT INTEREST
4545 GASB 31 - FMV ON INVESTMENTS
TOTAL AB 2766 MOTOR VEHICLE SUBVENTION
FUND
160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES
FUND
4065 INVESTMENT INTEREST
4085 SUPPLEMENTAL LAW ENFORCEMENT SERVICES
4545 GASB 31 - FMV ON INVESTMENTS

TOTAL SUPPLEMENTAL LAW ENFORCEMENT

SERVICES FUND
165 - AFFORDABLE HOUSING FUND
4009

RESIDUAL RECEIPT PAYMENT
4065

INVESTMENT INTEREST
4075

RENTAL INCOME
4076

REIMBURSEMENTS
4092

CONTRIBUTIONS AGENCY TRUST
4094

LEASE INCOME
4545
GASB 31 - FMV ON INVESTMENTS
4805
SERAF

TOTAL AFFORDABLE HOUSING FUND
170 - MEASURE A FUND
4065 INVESTMENT INTEREST
4545 GASB 31 - FMV ON INVESTMENTS
4725 MEASURE A ALLOCATIONS

TOTAL MEASURE A FUND
198 - PUBLIC ART FUND
4065 INVESTMENT INTEREST
4251 PUBLIC ART
4545 GASB 31 - FMV ON INVESTMENTS

TOTAL PUBLIC ART FUND
109,845 150,000 150,000 - 0.0%
14,545 15,073 16,694 1,621 10.8%

4.473 - - - 0.0%
128,863 165,073 166,694 1,621 1.00/0
2,197 3,129 3,502 373 11.9%
315,596 280,000 280,000 - 0.0%
(154) - - - 0.0%
317,639 283,129 283,502 373 0.10/0
91,633
-
- -

0.0%
214,743
224,234
238,091 13,857

6.2%
-
45,000
- (45,000)
-100.0%
-
3,600
- (3,600)
-100.0%
250,000
250,000
250,000

0.0%
75,600
25,000
- (25,000)
-100.0%
68,026
-

0.0%
-
620,091
- (620,091)
-100.0%
700,001
1,167,925
488,091 (679,834)
-58.2%
289,392 274,687 298,301 23,614 8.6%
91,732 - - - 0.0%
4,699,697 4,293,000 3,944,000 (349,000) -8.1%
5,080,822 4,567,687 4,242,301 (325,386) -7.1%
9,183 9,136 9,791 655 7.2%
50,383 3,500 1,850 (1,650) -47.1%
2,951 - - - 0.0%
62,517 12,636 11,641 (995) -7.9%
Annual Operating Budget 1 89

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
100 - GAS TAX FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Taxes and Franchises

GAS TAX
3,032,152
Use of Money and Property

INVESTMENT INTEREST
43,033
Revenues/Other Sources
3,075,185
Expenditures by Category

TRANSFERS
3,075,185
Expenditures/Other Financing Uses
3,075,185
Net Revenues
-
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
3,101,221
3,100,869
(352)

0.0%
28,554
42,802
14,248

49.9%
3,129,775
3,143,671
13,896

0.4%
3,129,775
3,143,670
13,895

0.4%
1 1 0.4%
- 100.0%
1 253.6%
This fund was established to account for the tax per gallon on the purchase of motor vehicle fuel imposed by the State of California. A portion is allocated to the City of Temecula as specified in the California Streets and Highways Code (SHC) (Sections 2013, 2105, 2107 and 2107.5). Gas Tax monies are restricted to the repair, maintenance and upkeep of City streets and roads, and the purchase of equipment used to maintain roads.

Analysis/Comments
Gas Tax revenue is projected to remain flat compared to the current budget, as projected by the State of California. Expenditures reflect the transfer of funds to the General Fund to augment the Public Works budget for street and road maintenance. 90 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA) FUND SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Taxes and Franchises

GAS TAX
2,778,429
2,770,626
2,878,989
108,363

3.9%
Use of Money and Property

INVESTMENT INTEREST
112,667
137,320
158,277
20,957

15.3%
Revenues/Other Sources
2,891,096
2,907,946
3,037,266
129,320

4.4%
Expenditures by Category

TRANSFERS
120,859
6,098,426
2,827,154
(3,271,272)
-53.6%
Expenditures/Other Financing Uses
120,859
6,098,426
2,827,154
(3,271,272)
-53.6%
Net Revenues
2,770,237
(3,190,480)
210,112
3,400,592
-34.9%
Fund Balance, Beginning of Year
1,038,689
3,808,926
618,446
(3,190,480)
-83.8%
Fund Balance, End of Year
3,808,926
618,446
828,559
210,112

34.0%
Fund Description
This fund is to account for gasoline and vehicle registration taxes pursuant to the Road Repair and Accountability Act of 2017 (SB1 Beall). Monies are collected by the State of California and allocated to local agencies for streets and road projects and other transportation uses.

Analysis/Comments
RMRA revenue is projected to increase by 4.4% due to investment interest earnings and increases in gasoline excise taxes and vehicle registration fees, as projected by the State of California. Expenditures reflect the transfer to the Capital Improvement Program to fund the Pavement Rehabilitation project. Expenditures are projected to decrease by 53.6% from the prior year, primarily due to elevated prior -year transfers intended to draw down accumulated fund balance levels.

Annual Operating Budget 1 91

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
103 - STREET MAINTENANCE FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property

INVESTMENT INTEREST
224,652
234,728
227,222
(7,506)
-3.2%
Operating Transfers In

CONTRIBUTION FROM MEASURES
2,000,000
2,000,000
1,000,000
(1,000,000)
-50.0%
Revenues/Other Sources
2,224,652
2,234,728
1,227,222
(1,007,506)
-45.1%
Expenditures by Category

TRANSFERS
-
2,937,307
1,927,477
(1,009,830)
-34.4%
Expenditures/Other Financing Uses
-
2,937,307
1,927,477
(1,009,830)
-34.4%
Net Revenues
2,224,652
(702,579)
(700,255)
2,324
-39.0%
Fund Balance, Beginning of Year
3,941,537
6,166,190
5,463,611
(702,579)
-11.4%
Fund Balance, End of Year
6,166,190
5,463,611
4,763,355
(700,255)
-12.8%
Fund Description
This fund was established to accumulate resources for the future replacement of streets and roads throughout the City.

Analysis/Comments
Contributions from the Measure S Fund will continue in order to accumulate resources for future street and road replacement. Revenue is expected to decrease by 45.1% due to reduced Transfer In from the Measure S Fund. Expenditures vary from year to year depending on Capital Project funding needs. Transfers reflect funding for the Overland Drive Widening Capital Improvement Project. 92 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
105 - NPDES IN LIEU FEES FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 28,738
20,162
19,603
(559)
-2.8%
Revenues/Other Sources 28,738
20,162
19,603
(559)
-2.8%
Expenditures by Category

CAPITAL OUTLAY -
385,850
114,150
(271,700)
-70.4%
Expenditures/Other Financing Uses -
385,850
114,150
(271,700)
-70.4%
Net Revenues 28,738
(365,688)
(94,547)
271,141
-67.1%
Fund Balance, Beginning of Year 603,016
631,753
266,065
(365,688)
-57.9%
Fund Balance, End of Year 631,753
266,065
171,518
(94,547)
-35.5%
Fund Description
This fund was established to account for the collection of In Lieu fees associated with the National Pollutant Discharge Elimination System
(NPDES).

Analysis/Comments
Revenue is received as private development subject to NPDES requirements occur. Revenue is projected to decrease by 2.8% over the prior year
due to reduced investment interest earnings. Capital Outlay expenditures reflect a decrease from the prior year of 70.4% due to the
phasing of
the replacement of the City's Storm Drain Inlet Filters.

Annual Operating Budget 1 93

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
106 - UPTOWN TEMECULA NEW STREETS IN -LIEU FEES SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service Charges

DEVELOPMENT IMPACT FEES
Use of Money and Property

INVESTMENT INTEREST
Revenues/Other Sources
Expenditures by Category

TRANSFERS
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
424,218
61,139
485,358
-
45,142
45,142
-
48,440
48,440
-
3,298
3,298

0.0%

7.3%

7.3%
-
500,857
-
(500,857)
-100.0%
-
500,857
-
(500,857)
-100.00/0
485,358
905,760
(455,715)
1,391,118
48,440
935,402
504,155
(455,715)
-91.1%
-32.8%
1,391,118
935,402
983,842
48,440

5.2%
This fund was established in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In -Lieu Fee. The Specific Plan requires developers to dedicate right-of-way and construct new street improvements adjacent to or through their development sites. Developers within the Specific Plan who cannot contribute right-of-way and/or build new streets will be charged a new streets in -lieu fee.

Analysis/Comments
Revenue in this fund is related to development that occurs in the Uptown Temecula Specific Plan area and is projected to increase by 7.3% due to investment interest earnings. Expenditures are expected to decrease by 100.0% due to the completion of the Capital Improvement Program to support the Las Haciendas Affordable Housing Project.
94 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
120 - DEVELOPMENT IMPACT FEES FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

QUIMBY FEES
478,177
1,085,000
1,066,460
(18,540)
-1.7%

DEVELOPMENT IMPACT FEES
3,910,393
1,130,000
6,426,910
5,296,910
468.8%
Use of Money and Property

INVESTMENT INTEREST
612,104
526,011
580,626
54,615

10.4%
Revenues/Other Sources
5,000,674
2,741,011
8,073,996
5,332,984
194.6%
Expenditures by Category

TRANSFERS
495,860
2,215,000
4,226,610
2,011,610

90.8%
Expenditures/Other Financing Uses
495,860
2,215,000
4,226,610
2,011,610

90.80/0
Net Revenues
4,504,814
526,011
3,847,386
3,321,375
148.2%
Fund Balance, Beginning of Year
11,359,340
15,864,154
16,390,165
526,011

3.3%
Fund Balance, End of Year
15,864,154
16,390,165
20,237,550
3,847,386

23.5%
Fund Description
This fund accounts for the development impact fees received as a result of development activity within the City. The fees are primarily used to fund Capital Improvement Projects designed to mitigate the impacts of development projects.

Analysis/Comments
Development Impact Fee (DIF) revenues vary from year-to-year depending on the level of development activity occurring within the City. FY25- 26 revenue is expected to increase in accordance with expected development activity. Expenditures of DIF reflect the transfer to the Capital Improvement Program to fund the projects necessary to mitigate the impacts of development.

Annual Operating Budget 1 95

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Taxes and Franchises

PEG FEES
Use of Money and Property

INVESTMENT INTEREST
Revenues/Other Sources
Expenditures by Category

CAPITAL OUTLAY
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
147,940
179,000
179,000
- 0.0%
44,100
33,523
36,436
2,913 8.7%
192,040
212,523
215,436
2,913 1.4%
37,686
175,000
25,000
(150,000) -85.7%
37,686
175,000
25,000
(150,000) -85.7%
154,355
37,523
190,436
152,913
-38.0%
879,324
1,033,678
1,071,201
37,523

3.6%
1,033,678 1,071,201 1,261,637 190,436 17.8%
This fund was established to account for Public Education and Government (PEG) fees. Fees received from local cable operators for the sole purpose of supporting the access facilities and activities within the City.

Analysis/Comments
PEG revenue is anticipated to remain flat in FY25-26, however, investment interest earnings are expected to increase, resulting in a total revenue increase of 1.4% over the prior year. Expenditures reflect the investment in updating the broadcast equipment used to manage the content and broadcast of the City's public television channel and are anticipated to decrease 85.7% over the prior year due to equipment acquisition/replacement schedules.
96 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
140 - COMMUNITY DEV BLOCK GRANT FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Intergovernmental Revenues
CDBG - CV2 GRANTS
663,670
-
-
-

0.0%

COMMUNITY DEVELOPMENT BLOCK
1,495,462
647,215
612,781
(34,434)

5.3%
GRANT
Revenues/Other Sources
2,159,133
647,215
612,781
(34,434)
-5.3%
Expenditures by Category

SALARIES & BENEFITS
42,281
44,562
45,804
1,243

2.8%

OPERATIONS & MAINTENANCE
183,182
189,756
246,140
56,385

29.7%

TRANSFERS
2,377,403
11,843
325,000
313,157
2644.2%
Expenditures/Other Financing Uses
2,602,866
246,160
616,944
370,784
150.6%
Net Revenues
(443,733)
401,055
(4,163)
(405,218)

37.6%
Fund Balance, Beginning of Year
46,842
(396,892)
4,163
401,055
101.0%
Fund Balance, End of Year
(396,892)
4,163
-
(4,163)
-100.0%
Fund Description
This fund was established to account for grants received from the U.S. Department of Housing and Urban Development (HUD). The grants are used for the redevelopment of a viable community by providing decent housing, a suitable living environment, and for expanding opportunities, principally for persons of low and moderate income.

Analysis/Comments
CDBG revenue reflects the reimbursement for operations and Capital projects expected to be completed during the fiscal year. The transfers of $325,000 is to provide funding to the Americans with Disability Act (ADA) Transition Plan implementation.

Annual Operating Budget 1 97

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
145 - TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property

INVESTMENT INTEREST
32,379
20,552
22,054
1,502

7.3%
Revenues/Other Sources
32,379
20,552
22,054
1,502

7.3%
Expenditures by Category

TRANSFERS
132,270
550,852
-
(550,852)
-100.0%
Expenditures/Other Financing Uses
132,270
550,852
-
(550,852)
-100.00/0
Net Revenues
(99,891)
(530,300)
22,054
552,354
-96.1%
Fund Balance, Beginning of Year
734,293
634,403
104,103
(530f300)
-83.6%
Fund Balance, End of Year
634,403
104,103
126,157
22,054

21.2%
Fund Description
This fund was established to capture energy efficiency rebates and reimbursements as well as expenditure savings resulting from energy efficiency projects completed at various City facilities. Revenue collected in this fund will be utilized on future energy efficiency projects.

Analysis/Comments
TEAM Fund revenues are estimated to increase by 7.3% over the prior year due to increased investment interest earnings. Expenditures reflect the transfer of funds to the Capital Improvement Program to fund energy efficiency projects. For FY25-26, however, no transfers to the Capital Improvement Program are expected, resulting in a 100.0% decrease over the prior year. 98 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property

INVESTMENT INTEREST
19,018
15,073
16,694
1,621

10.8%
Intergovernmental Revenues
AB2766 MOTOR VEHICLE SUBVENTION
109,845
150,000
150,000
-

0.0%
Revenues/Other Sources
128,863
165,073
166,694
1,621

1.00/0
Expenditures by Category

OPERATIONS & MAINTENANCE
11,000
13,200
13,200
-

0.0%

TRANSFERS
69,175
569,075
50,000
(519,075)
-91.2%
Expenditures/Other Financing Uses
80,175
582,275
63,200
(519,075)
-89.10/0
Net Revenues
48,688
(417,202)
103,494
520,696
-69.2%
Fund Balance, Beginning of Year
391,055
439,743
22,541
(417,202)
-94.9%
Fund Balance, End of Year
439,743
22,541
126,035
103,494
459.1%
Fund Description
This fund was established to account for subvention funds that are used to implement programs and projects that reduce air pollution from motor vehicles. AB2766 Funds are derived from a Motor Vehicle Registration fee surcharge. Local governments are allocated $1.60 for every eligible vehicle registered within the South Coast Air Quality Management District. Funds are disbursed based on the City's population as a percentage of the total population within the District. This fund is used for Capital projects and the City's share of WRCOG's Clean Cities Coalition.

Analysis/Comments
AB2766 expenditures are allocated to fund the Clean Cities Coalition ($13,200) and $50,000 is transferred to the Capital Improvement Program to provide funding for the Bike Lane and Trail Program. Expenditures are estimated to decrease by 90.3% over the prior year due to the prior year transfer to support the Nicolas Road Trail Extension project.

Annual Operating Budget 1 99

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 2,043
3,129
3,502
373

11.9%
Intergovernmental Revenues
SLESF GRANT 315,596
280,000
280,000
-

0.0%
Revenues/Other Sources 317,639
283,129
283,502
373

0.10/0
Expenditures by Category
TRANSFERS 317,639
281,564
285,067
3,503

1.2%
Expenditures/Other Financing Uses 317,639
281,564
285,067
3,503

1.2%
Net Revenues -
1,565
(1,565)
(3,130)

0.7%
Fund Balance, Beginning of Year
-
1,565
1,565
100.0%
Fund Balance, End of Year
1,565
-
(1,565)
-100.0%
Fund Description
This fund was established to account for the Supplemental Law Enforcement Services grant monies from the
State of California
which are
provided to assist cities in delivering front line law enforcement services.

These monies supplement existing services and may not be used to supplant any existing funding for law enforcement services provided by the City.

Analysis/Comments
Supplemental Law Enforcement Services (SLESF) revenues are projected to remain flat for FY25-26. Expenditures reflect the transfer of these
funds to the General Fund to supplement the Sheriffs budget. 100 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
165 - AFFORDABLE HOUSING FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed
Description Actuals Budget Budget
Increase/
(Decrease)
Increase/
Decrease
Revenues by Source
Taxes and Franchises

REDEVELOPMENT PROPERTY TAX FUND
620,091
(620,091)
-100.0%

DISTRIBUTION
Use of Money and Property

LEASE/RENTAL INCOME
75,600
70,000
(70,000)
-100.0%
OTHER
91,633
-
-
-

0.0%

INVESTMENT INTEREST
282,768
224,234
238,091
13,857

6.2%
Intergovernmental Revenues

AGENCY TRUST CONTRIBUTION
250,000
250,000
250,000
-

0.0%
Reimbursements

OTHER REIMBURSEMENTS
-
3,600
-
(3,600)
-100.0%
Revenues/Other Sources
700,001
1,167,925
488,091
(679,834)
-58.2%
Expenditures by Category

SALARIES & BENEFITS
365,308
213,449
248,132
34,683

16.2%

OPERATIONS & MAINTENANCE
99,354
259,325
288,423
29,098

11.2%

INTERNAL SERVICE FUND ALLOCATIONS
68,102
50,054
54,273
4,219

8.4%

TRANSFERS
-
5,091,359
-
(5,091,359)
-100.0%
Expenditures/Other Financing Uses
532,763
5,614,187
590,828
(5,023,359)
-89.50/0
Net Revenues
167,238
(4,446,262)
(102,737)
4,343,524
-84.1%
Fund Balance, Beginning of Year
12,004,378
12,171,616
7,725,354
(4,446,262)
-36.5%
Fund Balance, End of Year
12,171,616
7,725,354
7,622,617
(102,737)
-1.3%
Fund Description
The Affordable Housing fund contains the assets as well as loan and rental income which have been transferred to the City of Temecula from the former Redevelopment Agency.

Analysis/Comments
Affordable Housing revenue includes the transfer of bond proceeds from the former Redevelopment Agency to fund Affordable Housing projects. FY25-26 revenues are estimated to decline by 58.2% due to the one-time receipt of Redevelopment Property Tax received in 2024-

25. The FY24-25 Transfers reflect funding for the following Affordable Housing Capital Improvement Projects:
- Habitat for Humanity Old Town Units ($1,261,000 - of which $561,000 is a contribution of land) - Las Haciendas Affordable Housing Project ($1,681,359) - Uptown Temecula Affordable Housing Site ($1,300,000 in land contribution) - Vine Creek Affordable Housing Project ($2,710,000)
FY25-26 expenditures are estimated to decrease by 89.5% due to the reduction in Transfers over the prior year.

Annual Operating Budget 1 101

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
170 - MEASURE A FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property

INVESTMENT INTEREST
381,124
274,687
298,301
23,614

8.6%
Intergovernmental Revenues

MEASURE A
4,699,697
4,293,000
3,944,000
(349,000)
-8.1%
Revenues/Other Sources
5,080,822
4,567,687
4,242,301
(325,386)
-7.10/0
Expenditures by Category

OPERATIONS & MAINTENANCE
2,885,916
1,783,743
3,155,000
1,371,257

76.9%

TRANSFERS
923,190
8,390,869
2,872,160
(5,518,709)
-65.8%
Expenditures/Other Financing
3,809,106
10,174,612
6,027,160
(4,147,452)
-40.8%
Uses
Net Revenues
1,271,715
(5,606,925)
(1,784,859)
3,822,066
-30.3%
Fund Balance, Beginning of Year
7,096,089
8,367,804
2,760,879
(5,606,925)
-67.0%
Fund Balance, End of Year
8,367,804
2,760,879
976,020
(1,784,859)
-64.6%
Fund Description
This fund was established to account for the City's allocation of the County of Riverside's additional one-half percent sales tax for transportation. These monies are restricted for use on local streets. In 2002, Measure A was extended by Riverside County voters. Measure A will continue to fund transportation improvements through 2039.

Analysis/Comments
Measure A revenue is projected to decrease by 7.1% in FY25-26 due to a projected decrease in the sales tax transfer from the County of Riverside. Operational expenditures are increasing by 76.9% to support the Public Works department in the maintenance of streets and roads, while transfers to the Capital Improvement Program, to primarily fund the Pavement Rehabilitation Program, are decreasing by

65.8%.
102 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
198 - PUBLIC ART FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

PUBLIC ART
Use of Money and Property

INVESTMENT INTEREST
Revenues/Other Sources
Expenditures by Category

OPERATIONS & MAINTENANCE
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
50,383
3,500
1,850
(1,650) -47.1%
12,134
9,136
9,791
655 7.2%
62,517
12,636
11,641
(995) -7.9%
8,460 113,226
(113,226)-100.0%
8,460 113,226 - (113,226)-100.00/0
54,057
(100,590)
11,641
112,231
-90.8%
226,427
280,483
179,893
(100,590)
-35.9%
280,483 179,893 191,534 11,641 6.5%
This fund was established pursuant to Temecula Municipal Code Section 5.08.040, whereby the fund serves as a depository for the fees paid in lieu of art as well as monetary donations for public art. The Public Art In Lieu fee is one -tenth of one percent of an eligible development project in excess of $100,000. Eligible uses of this fund include the design, acquisition, installation, improvement, maintenance and insurance of public artwork; offering of performing arts programs on City property for the community; and art education programs on City property for the community.

Analysis/Comments
The Public Art Fund revenue fluctuates each year along with development activity. Revenue for FY25-26 is expected to decrease by 7.9%, which includes a 47.1% decline in revenue from development and a 7.2% increase in investment interest earnings. Currently, no public art projects have been identified for FY25-26, therefore, expenditures are budgeted at zero. Additional expenditures will be programmed in the future as projects/programs are identified.

Annual Operating Budget 1 103

CITY OF TEMECULA

TEMECULA COMMUNITY

SERVICES DISTRICT FUNDS
The Temecula Community Services District (TCSD) was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs, community and human services and special events activities aimed at enhancing the high quality of life of our youth, teens, adults, seniors and special needs population.

The District also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, emergency dirt road maintenance, library services and an intern fellowship program.
104 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE BY SOURCE
190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND
%
2023-2024
2024-2025
2025-2026
Increase/
Increase/
Description
Actuals
Current Budget
Proposed Budget
(Decrease)
Decrease
Taxes and Franchises

SPECIAL TAX (MEASURE C)
1,908,085
1,926,088
1,935,718
9,630

0.5%
Licenses, Permits and Service Charges

AQUATICS
245,054
238,966
271,966
33,000

13.8%

SPORTS LEAGUES & TOURNAMENTS
301,153
224,193
222,693
(1,500)
-0.7%

CONTRACT CLASSES
1,021,502
1,200,000
1,200,000
-

0.0%

CLASSES/ACTIVITIES
119,859
68,239
72,927
4,688

6.9%

FACILITY RENTALS
426,289
382,579
366,954
(15,625)
-4.1%

MUSEUM ADMISSIONS
103,604
97,435
97,335
(100)
-0.1%

THEATER ADMISSIONS
270,541
297,000
297,000
-

0.0%

DAY CAMPS
115,727
116,721
116,721

0.0%
Use of Money and Property
OTHER
3,117
-
-
-

0.0%

INVESTMENT INTEREST
51,789
11,356
12,924
1,568

13.8%
Reimbursements

OTHER REIMBURSEMENTS
18,077
106,510
106,510
0 0.0%
Operating Transfers In

CONTRIBUTION FROM MEASURES
13,254,402
15,864,726
16,480,467
615,741

3.9%
Miscellaneous

MISCELLANEOUS
102,984
93,577
95,401
1,824

1.9%
Total Revenues and Other Sources
17,942,182
20,627,390
21,276,617
649,227

3.1%
Annual Operating Budget 1 105

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL
190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND
Fund 2023-2024 2024-2025 2025-2026 Increase/
190 Description Actuals Current Budget Proposed Budget (Decrease) Increase/ Decrease
180 - OPERATIONS
4004 SPECIAL TAX (MEASURE C) 1,908,085 1,926,088 1,935,718 9,630 0.5% 4060 MISCELLANEOUS NON-TAXABLE 3,117 - - - 0.0%
4065 INVESTMENT INTEREST 34,356 11,356 12,924 1,568 13.8% 4070 CASH OVER & SHORT 406 - - - 0.0%
4387 FILMING LOCATION AGREEMENT FEE - 140 80 (60) -42.9% 6002 TRANSFER IN FROM MEASURES FUND 13,254,402 15,864,726 16,480,467 615,741 3.9% 181 - TCSD - HUMAN SERVICES
4076 REIMBURSEMENTS 18,077 31,510 31,510 0 0.0%
4977 INCLUSIVE CLASSES/ACTIVITIES 1,455 2,430 2,430 - 0.0% 4978 SENIOR/INCLUSIVE DAY CAMP 32,900 1,602 1,602 0.0%
4980 CLASSES/ACTIVITIES 863 1,040 1,040 - 0.0%
4983 TRANSPORTATION 1,452 2,072 2,700 628 30.3%
4986 EXCURSIONS 4,425 2,190 4,250 2,060 94.1%
4990 INDOOR RENTALS 1,524 999 999 - 0.0%
4992 SPECIAL EVENTS 2,602 2,602 - (2,602)-100.0%
4995 HIGH HOPES 1,166 2,019 - (2,019)-100.0%
182 - TCSD - COMMUNITY RECREATION CENTER
4966 OPEN GYM RESIDENT/NON-RESIDENT 14,555 9,500 9,500 0.0% 4984 DAY CAMP 115,727 116,721 116,721 0.0%
4990 INDOOR RENTALS 16,611 15,500 3,875 (11,625) -75.0% 4992 SPECIAL EVENTS 13,996 13,371 13,371 0.0%
4998 SKATE PARK 235 - - - 0.0%
183 - TCSD - SPECIAL EVENTS
4161 SPECIAL EVENT PERMITS 500 100 400 300 300.0%
4992 SPECIAL EVENTS 62,083 53,250 60,500 7,250 13.6%
184 - TCSD - TEMECULA COMMUNITY CENTER
4921 INDOOR RENTALS - CONFERENCE CENTER 6,295 7,000 7,000 - 0.0% 4989 PICNIC SHELTER RENTALS 20,832 15,000 15,000 0.0%
4990 INDOOR RENTALS 34,071 25,000 21,000 (4,000) -16.0% 185 - TCSD - MUSEUM AND CULTURAL ARTS
4088 DONATIONS 424 395 250 (145) -36.7%
4508 GIFT SHOP 20,313 20,000 20,000 - 0.0%
4951 TOURS 239 200 100 (100) -50.0%
4953 FIELD TRIPS 3,622 2,000 2,000 - 0.0%
4980 CLASSES/ACTIVITIES 90 780 780 0.0%
4991 ADMISSIONS 25,203 22,235 22,235 0.0%
4992 SPECIAL EVENTS 1,200 - - - 0.0%
186 - TCSD - AQUATICS
4970 SWIM LESSONS 186,266 175,000 200,000 25,000 14.3%
4971 LAP SWIM 21,654 22,000 22,000 - 0.0%
4972 PUBLIC SWIM 28,077 32,000 40,000 8,000 25.0%
4973 FAMILY NIGHT SWIM 892 1,316 1,316 - 0.0%
4974 POOL RENTALS 21,526 24,000 24,000 0.0%
4976 NON-RESIDENT SWIM 8,165 8,650 8,650 0.0%
4980 CLASSES/ACTIVITIES 68,463 53,000 53,000 0.0%
106 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL
190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND
Fund 2023-2024 2024-2025 2025-2026 Increase/ %
190 Description Actuals Current Budget Proposed Budget (Decrease) Increase/ Decrease
187 - TCSD - SPORTS
4959 ADULT BASKETBALL LEAGUE 12,090 6,923 6,923 0.0%
4960 ADULT SOFTBALL 80,590 56,860 56,860 0.0%
4961 ADULT KICKBALL 5,010 4,400 4,400 0.0%
4962 HOCKEY 29,578 14,250 12,750 (1,500) -10.5%
4963 TOURNAMENTS 142,890 120,000 120,000 0.0%
4965 YOUTH LEAGUES- NON-RESIDENT 16,205 12,260 12,260 0.0% 4988 FIELD RENTALS/LIGHTS 219,296 200,080 200,080 - 0.0% 4997 CONCESSIONS - 600 - (600)-100.0%
189 - TCSD - COMMUNITY THEATER
4070 CASH OVER & SHORT 10 - - - 0.0%
4901 FRONT OF HOUSE FEES 7,083 7,000 7,000 0.0%
4906 THEATER -STAGEHAND LABOR REIMB. 112,298 110,000 110,000 0.0% 4907 THEATER -TICKET SERVICES REIMB. 39,452 40,000 40,000 0.0% 4910 THEATER-TEMECULA PRESENTS 111,708 140,000 140,000 0.0% 4990 INDOOR RENTALS 67,989 60,000 60,000 0.0%
4991 ADMISSIONS 78,162 75,000 75,000 0.0%
4997 CONCESSIONS 1,200 1,200 1,200 0.0%
4999 THEATER -EQUIPMENT RENTALS 38,147 35,000 35,000 0.0% 197 - TCSD - CONTRACT CLASSES
4982 CONTRACTED CLASSES 1,021,502 1,200,000 1,200,000 0.0% 201 - TCSD - HOMELESS OUTREACH AND PREVENTION
4076 REIMBURSEMENTS - 75,000 75,000 - 0.0%
202 - TCSD - WORKFORCE DEVELOPMENT
4248 TCSD WORKFORCE PROGRAMS 6,090 3,025 4,725 1,700 56.2% 199 - NON -DEPARTMENTAL
4545 GASB 31 - FMV ON INVESTMENTS 17,017 - - - 0.0%
TOTAL TEMECULA COMMUNITY SERVICES 17,942,182 20,627,390 21,276,617 649,227 3.1%

DISTRICT FUND
Annual Operating Budget 1 107

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL

TEMECULA COMMUNITY SERVICE DISTRICT
Description
191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 4065 INVESTMENT INTEREST
6192 TRANSFER IN FROM SVC LVL B STREET LIGHTS FUND
4545 GASB 31 - FMV ON INVESTMENTS
TOTAL TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 2024-2025
2025-2026
%
2023-2024
Current
Proposed
Increase/
Increase/
Actuals
Budget
Budget
(Decrease)
Decrease
40,590
43,442
47,370
3,927

9.0%
200,000
200,000
-
(200,000)
-100.0%
14,004
-
-

0.0%
254,595
243,442
47,370
(196,073)
-80.5%
192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND
4005 ASSESSMENTS 654,945 658,307 658,173 (134) 0.0%
4065 INVESTMENT INTEREST 15,669 15,399 15,756 357 2.3%
4545 GASB 31 - FMV ON INVESTMENTS 2,650 - - - 0.0%
TOTAL TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 673,264 673,706 673,929 223 0.0% 194 - TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND
4005

ASSESSMENTS
10,437,416
10,588,128
10,586,696
(1,432) 0.0%
4025
GRANTS
290,059
127,037
127,037
- 0.0%
4065

INVESTMENT INTEREST
60,179
30,067
33,639
3,573 11.9%
4096

RECYCLING PROGRAM
63,832
27,553
27,553
- 0.0%
4545
GASB 31 - FMV ON INVESTMENTS
1,301
-
-
- 0.0%
TOTALTCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND
10,852,787
10,772,785
10,774,926
2,141 0.0%
195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT. FUND
4005 ASSESSMENTS 5,504 5,532 5,532 0 0.0%
4065 INVESTMENT INTEREST 1,271 2,605 1,410 (1,195) -45.9% 4545 GASB 31 - FMV ON INVESTMENTS 400 - - 0.0%
TOTAL TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 7,175 8,137 6,943 (1,195) -14.7% 196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND
4005

ASSESSMENTS
254,788
256,750
259,318
2,568

1.0%
4007

HARVESTON LAKE BOAT REVENUE
2,325
-
-
-

0.0%
4060

MISCELLANEOUS NON-TAXABLE
176
-
-
-

0.0%
4065

INVESTMENT INTEREST
12,864
11,702
12,023
320

2.7%
4301

PERMITS
6,405
5,000
6,000
1,000

20.0%
4545
GASB 31 - FMV ON INVESTMENTS
3,411
-
-
-

0.0%
TOTAL TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND
279,969
273,452
277,341
3,888

1.4%
197 - TEMECULA LIBRARY FUND
4065

INVESTMENT INTEREST
14,844
15,300
9,124
(6,176)
-40.4%
4071

FINES & FEES
33,807
28,446
11,378
(17,068)
-60.0%
4079

PRINTING & COPIES
10,349
8,919
10,792
1,873

21.0%
4274

FACILITIES RENTALS
14,754
14,620
14,620
-

0.0%
6002

TRANSFER IN FROM MEASURES FUND
818,085
1,127,563
1,384,016
256,453

22.7%
4545
GASB 31 - FMV ON INVESTMENTS
4,134
-
-
-

0.0%

TOTAL TEMECULA LIBRARY FUND
895,973
1,194,848
1,429,930
235,082

19.7%
501-530 TCSD SERVICE LEVEL "C" SLOPE MAINT. FUNDS
4005

ASSESSMENTS
11594,019
1,592,097 1,593,048 951 0.1%
4060

MISCELLANEOUS NON-TAXABLE
322,833
- - - 0.0%
4065

INVESTMENT INTEREST
70,496
121,191 62,954 (58,237) -48.1%
4545
GASB 31 - FMV ON INVESTMENTS
20,494
- - 0.0%
TOTAL 501 TCSD SERVICE LEVEL "C" SLOPE MAINT FUNDS
2,007,843
1,713,288 1,656,002 (57,286) -14.7%
108 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - ALL FUNDS COMBINED 2025-2026
%
2023-2024
2024-2025
Proposed
Increase/
Increase/
Description
Actuals
Current Budget
Budget
(Decrease)
Decrease
Revenues by Fund
190 - TCSD Operations
17,942,182
20,627,390
21,276,617
649,227

3.1%
191 - Service Level B (Streetlight Replacement)
254,595
243,442
47,370
(196,073)
-80.5%
192 - Service Level B (Street Lights)
673,264
673,706
673,929
223

0.0%
194-Service Level D (Refuse/Recycling)
10,852,787
10,772,785
10,774,926
2,141

0.0%
195-Service Level R (Road Maintenance)
7,175
8,137
6,943
(1,195)
-14.7%
196-Service Level L (Lake Park Maintenance)
279,969
273,452
277,341
3,888

1.4%
197-Temecula Public Library
895,973
1,194,848
1,429,930
235,082

19.7%
501-530-Service Level C (Slope Maintenance)
2,007,843
1,713,288
1,656,002
(57,286)
-3.3%
Total Revenues and Other Sources

32.913.787

35.507.049

36.143.057
636.008

1.8%
Expenditures by Fund
190 - TCSD Operations
18,234,885
21,116,715
21,311,588
194,874

0.9%
191 - Service Level B (Streetlight Replacement)
-
-
20,000
20,000
100.0%
192 - Service Level B (Street Lights)
541,632
684,000
726,938
42,938

6.3%
194-Service Level D (Refuse/Recycling)
10,487,951
11,101,603
11,268,756
167,154

1.5%
195-Service Level R (Road Maintenance)
107
5,425
10,434
5,009

92.3%
196-Service Level L (Lake Park Maintenance)
267,945
320,001
318,076
(1,925)
-0.6%
197-Temecula Public Library
1,144,148
1,334,578
1,445,528
110,950

8.3%
501-530-Service Level C (Slope Maintenance)
1,848,709
1,633,893
1,668,781
34,888

2.1%
Total Expenditures and Other Financial Uses
32,525,377
36,196,213
36,770,101
573,888

1.6%
Excess of Revenues Over (Under) Expenditures 388,410 (689,164) (627,045) 62,120 1.7% Fund Balance, Beginning of Year 5,777,652 6,166,062 5,476,897 (689,164) -11.2% Fund Balance, End of Year 6,166,062 5,476,897 4,849,853 (627,045) -11.4% Fund Description
Citywide Operations reflects the collection of the Special Tax (Measure C) charged to households for recreation programs as well as fees for classes and activities. Accounts for facility operations, maintenance, and community recreation programs. Measure C was approved by residents in 1997 at a rate of $74.44 per parcel for the purpose of maintaining the City's parks, recreation facilities, arterial street lighting and traffic signals. The Special Tax revenue is allocated equally between TCSD and the General Fund to fund both recreation programs and parks maintenance.

Annual Operating Budget 1 109

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) OPERATIONS SUMMARY Fund: 190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND
2022-2023 2023-2024 2024-2025 Increase/ Increase/
Description Actuals Current Budget Proposed Budget (Decrease) Decrease

TEMECULA COMMUNITY SERVICES DISTRICT FUND
Revenues by Department

AQUATICS

COMMUNITY RECREATION CENTER

COMMUNITY THEATER

CONTRACT CLASSES

HOMELESS OUTREACH AND PREVENTION

MUSEUM AND CULTURAL ARTS

NON -DEPARTMENTAL

OPERATIONS

SENIOR AND INCLUSIVE SERVICES

SPECIAL EVENTS
SPORTS

TEMECULA COMMUNITY CENTER

WORKFORCE DEVELOPMENT
Total Revenues
Expenditures by Department

AQUATICS

COMMUNITY RECREATION CENTER

COMMUNITY THEATER

CONTRACT CLASSES

HOMELESS OUTREACH AND PREVENTION

MUSEUM AND CULTURAL ARTS

OPERATIONS

SENIOR AND INCLUSIVE SERVICES
i.7•lty/_111111"t1:11►11[.9
SPORTS

TEMECULA COMMUNITY CENTER

WORKFORCE DEVELOPMENT
Total Expenditures
Excess of Revenues Over (Under) Expenditures
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
335,042
315,966
348,966
33,000

10.44%
161,124
155,092
143,467
(11,625)
-7.50%
456,049
468,200
468,200

0.00%
1,021,502
1,200,000
1,200,000

0.00%
-
75,000
75,000
-

0.00%
51,091
45,610
45,365
(245)
-0.54%
17,017
-
-
-

0.00%
15,200,365
17,802,310
18,429,190
626,880

3.52%
64,463
46,464
44,531
(1,933)
-4.16%
62,583
53,350
60,900
7,550

14.15%
505,658
415,373
413,273
(2,100)
-0.51%
61,198
47,000
43,000
(4,000)
-8.51%
6,090
3,025
4,725
1,700

56.20%
17,942,182
20,627,390
21,276,617
649,227

3.15%
1,627,795
2,648,317
2,589,635
(58,682)
-2.22%
1,290,167
1,371,032
1,243,832
(127,200)
-9.28%
1,591,395
1,637,185
1,683,992
46,807

2.86%
1,171,168
1,668,635
1,819, 925
151,291

9.07%
1,240,845
1,661,154
1,742,791
81,637

4.91%
852,526
914,514
834,747
(79,767)
-8.72%
6,610,514
6,875,584
7,059,724
184,141

2.68%
932,748
1,165,743
1,703,294
537,551

46.11%
1,564,886
1,234,281
1,352,415
118,135

9.57%
676,968
1,032,477
986,706
(45,771)
-4.43%
368,249
485,984
242,527
(243,457)
-50.10%
307,622
421,810
-
(421,810)
-100.00%
18,234,885
21,116,715
21,259,588
142,874

0.68%
(292,703) (489,325) 17,029 506,354-103.48%
916,999 624,297 134,972 (489,325) -78.4%
624,297 134,972 152,000 17,029 12.6%
Citywide Operations reflects the collection of the Special Tax (Measure C) charged to households for recreation programs as well as fees for classes and activities. Accounts for facility operations, maintenance, and community recreation programs. Measure C was approved by residents in 1997 at a rate of $74.44 per parcel for the purpose of maintaining the City's parks, recreation facilities, arterial street lighting and traffic signals. The Special Tax revenue is allocated equally between TCSD and the General Fund to fund both recreation programs and parks maintenance.

Analysis/Comments
TCSD revenue is projected to increase overall by 3.1%, including a 10.49% increase in Aquatics due to the new pool facility at the Margarita Recreation Center and a 13.8% increase in investment interest earnings. Expenditures are estimated to increase 0.68%, including a 6.3% increase in Salaries & Benefits offset by a reduction in Operations & Maintenance expenditures of 11.7%. These expenditures continue to provide the community recreational, cultural arts, sports human service programs, including the opening of the newly renovated Margarita Recreation Center.
110 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Use of Money and Property

INVESTMENT INTEREST
Operating Transfers In

OPERATING TRANSFERS IN
Revenues/Other Sources
Expenditures by Category

OPERATIONS & MAINTENANCE
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
54,595
200,000
43,442
200,000
47,370
-
3,927
(200,000)

9.0%
-100.01
254,595
243,442
47,370
(196,073)
-80.50/0
-
-
20,000
20,000
100.0%
-
-
20,000
20,000
100.00/0
254,595
11069,628
243,442
1,324,223
27,370
1,567,665
(216,073)
243,442
-72.3%

18.4%
1,324,223
1,567,665
1,595,035
27,370

1.7%
This fund was established to accumulate resources for the replacement of streetlight equipment, poles and lightbulbs, as the City has acquired street lights from Southern California Edison, and to install new street lights as needed throughout the City. Each year, $200,000 is transferred to this fund from the TCSD Service Level "B" Street Lights Fund (Fund 192), until the desired reserve of $1.5 million is reached.

Analysis/Comments
FY25-26 revenues are projected to decrease by 80.5% due to the reduction of Transfers from Fund 192. Expenditures are estimated to increase 100.0% over the prior year in order to maintain the newly acquired residential street lights.

Annual Operating Budget 1 111

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

ASSESSMENTS
654,945
658,307
658,173
(134)

0.0%
Use of Money and Property

INVESTMENT INTEREST
18,319
15,399
15,756
357

2.3%
Revenues/Other Sources
673,264
673,706
673,929
223

0.00/0
Expenditures by Category

SALARIES & BENEFITS
-
-
206,647
206,647
100.0%

OPERATIONS & MAINTENANCE
341,632
484,000
483,688
(312)
-0.1%

INTERNAL SERVICE FUND
36,603
36,603
100.0%

ALLOCATIONS

TRANSFERS
200,000
200,000
-
(200,000)
-100.0%
Expenditures/Other Financing
541,632
684,000
726,938
42,938

6.30/0
Uses
Net Revenues
131,632
(10,294)
(53,010)
(42,715)

3.2%
Fund Balance, Beginning of Year
391,634
523,266
512,971
(10,294)
-2.0%
Fund Balance, End of Year
523,266
512,971
459,962
(53,010)
-10.3%
Fund Description
Service Level B reflects the collection of benefit assessments charged to property owners. Service Level B includes only those parcels within residential subdivisions that receive residential street lighting services. This service level includes operational, administrative, maintenance and utility costs of residential streetlights. Each year, $200,000 is transferred from this fund to the TCSD Service Level "B" Streetlight Replacement Fund (Fund 191) to accommodate these costs, until the desired reserve in Fund 191 of $1.5 million is reached.

Analysis/Comments
Service Level B assessment revenue is utilized to cover the costs for maintaining the street light network. For FY25-26, expenditures are expected to increase a total of 6.3% over the prior year due to the addition of a new position, Signal Technician I, to support the ongoing operations and maintenance of the streetlight network.
112 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
194 - TCSD SERVICE LEVEL "D"
2023-2024
Description Actuals

REFUSE/RECYCLING FUND SUMMARY
2024-2025 2025-2026
Current Proposed Increase/
Budget Budget (Decrease)
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges

RECYCLING PROGRAM
63,832
27,553
27,553
-

0.0%

ASSESSMENTS
10,437,416
10,588,128
10,586,696
(1,432)

0.0%
Use of Money and Property

INVESTMENT INTEREST
61,480
30,067
33,639
3,573

11.9%
Intergovernmental Revenues
GRANTS
290,059
127,037
127,037
-

0.0%
Revenues/Other Sources
10,852,787
10,772,785
10,774,926
2,141

0.00/0
Expenditures by Category

SALARIES & BENEFITS
80,543
79,522
74,789
(4,733)
-6.0%

OPERATIONS & MAINTENANCE
10,407,408
10,998,675
11,162,451
163,776

1.5%

CAPITAL OUTLAY
-
23,405
31,516
8,111

34.7%
Expenditures/Other Financing Uses
10,487,951
11,101,603
11,268,756
167,154

1.50/0
Net Revenues
364,835
(328,818)
(493,830)
(165,013)

0.8%
Fund Balance, Beginning of Year
580,363
945,198
616,380
(328,818)
-34.8%
Fund Balance, End of Year
945,198
616,380
122,550
(493,830)
-80.1%
Fund Description
Service Level D Fund is used to collect benefit assessments charged to property owners for the purpose of providing refuse collection, recycling, and street sweeping throughout the City, which is provided by CR&R. In addition, Service Level D has received grants to increase recycling efforts Citywide.

Analysis/Comments
Service Level D revenues are projected to remain flat overall for FY25-26, with an increase of 11.9% in investment interest earnings. Total expenditures are projected to increase by 1.5%, which includes a 6.0% reduction in Salaries & Benefits and a 34.7% increase in Capital Outlay due to prior -year rollover. Expenditures reflect the pass through of the Assessment revenue, collected through property tax bills, to CR&R for Refuse and Recycling services.

Annual Operating Budget 1 113

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

ASSESSMENTS
Use of Money and Property

INVESTMENT INTEREST
Revenues/Other Sources
Expenditures by Category

OPERATIONS & MAINTENANCE
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
5,504
5,532
5,532

0.0%
1,671
2,605
1,410
(1,195) -45.9%
7,175
8,137
6,943
(1,195) -14.7%
107 5,425 10,434 5,009 92.3%
107 5,425 10,434 5,009 92.3%
7,068
2,712
(3,491)
(6,204)

28.1%
33,055
40,123
42,835
2,712

6.8%
40,123 42,835 39,344 (3,491) -8.2%
Service Level R Fund reflects the operational, administrative, construction and maintenance costs for certain unpaved roads that become inaccessible after inclement weather. Zone R-1 provides service in the Nicolas/Liefer Road area. The maximum rate that can be charged for Zone R-1 for an improved parcel is $115.26 and for an unimproved parcel is $57.62.

Analysis/Comments
Service Level R revenue is projected to decrease by 14.7% due to an adjustment to the allocation of investment interest earnings. Expenditures are anticipated to increase by 92.3%, which includes an increased allocation for emergency street maintenance. Expenditures reflect the maintenance costs of Leifer Road and other unpaved roads in the area. 114 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

HARVESTON LAKE BOAT REVENUE
2,325
-
-
-

0.0%

ASSESSMENTS
254,788
256,750
259,318
2,568

1.0%
Use of Money and Property
OTHER
176
-
-
-

0.0%

INVESTMENT INTEREST
16,275
11,702
12,023
320

2.7%
Miscellaneous

MISCELLANEOUS
6,405
5,000
6,000
1,000

20.0%
Revenues/Other Sources
279,969
273,452
277,341
3,888

1.4%
Expenditures by Category

SALARIES & BENEFITS
12,750
14,601
14,976
375

2.6%

OPERATIONS & MAINTENANCE
255,195
305,400
303,100
(2,300)
-0.8%
Expenditures/Other Financing Uses
267,945
320,001
318,076
(1,925)
-0.6%
Net Revenues
12,024
(46,548)
(40,735)
5,813

0.3%
Fund Balance, Beginning of Year
360,756
372,780
326,232
(46,548)
-12.5%
Fund Balance, End of Year
372,780
326,232
285,497
(40,735)
-12.5%
Fund Description
Service Level L Fund reflects the benefit assessments charged to property owners for the purpose of maintaining Harveston Lake Park.

Expenditures include operational, administrative and maintenance costs.

Analysis/Comments
Service Level L revenue is projected to increase by 1.4% primarily due to a 1.0% increase in Assessments and a 20.0% increase in Miscellaneous revenue related to fishing permits at Harveston Lake. Expenditures reflect a 0.6% decrease due to a reduction in Operations & Maintenance costs.

Annual Operating Budget 1 115

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
197 - TEMECULA LIBRARY FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed
Description Actuals Budget Budget
Increase/
(Decrease)
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges

PRINTING & COPIES
10,349
8,919
10,792
1,873

21.0%
Fines and Forfeitures

FINES & FORFEITURES
33,807
28,446
11,378
(17,068)
-60.0%
Use of Money and Property

LEASE/RENTAL INCOME
14,754
14,620
14,620

0.0%

INVESTMENT INTEREST
18,978
15,300
9,124
(6,176)
-40.4%
Operating Transfers In

CONTRIBUTION FROM MEASURES
818,085
1,127,563
1,384,016
256,453

22.7%
Revenues/Other Sources
895,973
1,194,848
1,429,930
235,082

19.7%
Expenditures by Category

SALARIES & BENEFITS
226,676
264,954
345,661
80,707

30.5%

OPERATIONS & MAINTENANCE
528,862
581,908
565,823
(16,085)
-2.8%

INTERNAL SERVICE FUND
388,609
446,566
534,044
87,478

19.6%

ALLOCATIONS

CAPITAL OUTLAY
-
41,150
-
(41,150)
-100.0%
Expenditures/Other Financing
1,144,148
1,334,578
1,445,528
110,950

8.3%
Uses
Net Revenues
(248,174)
(139,729)
(15,598)
124,131

13.7%
Fund Balance, Beginning of Year
503,501
255,327
115,598
(139,729)
-54.7%
Fund Balance, End of Year
255,327
115,598
100,000
(15,598)
-13.5%
Fund Description
The Library Fund is used to account for the maintenance and operations of the Ronald H. Roberts Temecula Public Library on Pauba Road Analysis/Comments
Contributions from Measure S serve as the primary funding source for library operations. For FY25-26, Library revenues are anticipated to increase by a total of 19.7%. This includes a 60.0% reduction in Fines & Forfeitures, a 40.0% reduction in investment interest earnings, and a 22.7% increase in the Contribution From Measure S. Library expenditures are expected to increase by 8.3%, primarily due to a

30.5% increase in Salaries & Benefits related to the hiring of custodial staff, which is partially offset by a reduction in the janitorial contract, and a 19.6% increase in Internal Service Fund Allocations related to the increase in technology devices allocated to the Library.

Offsetting these expenses is a 100.0% reduction in Capital Outlay due to the completed purchase of a storage shed. 116 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
FUNDS 501-530 SERVICE LEVEL C - LANDSCAPE / SLOPE MAINTENANCE SUMMARY 2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

ASSESSMENTS
Use of Money and Property
OTHER

INVESTMENT INTEREST
Revenues/Other Sources
Expenditures by Category

OPERATIONS & MAINTENANCE

TRANSFERS
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
11594,019 1,592,097 1,593,048 951 0.1%
322,833
90,990
-
121,191
-
62,954
(58,237)

0.0%
-48.1%
2,007,843
1,713,288
1,656,002
(57,286)
-3.3%
1,436,817
411,891
1,594,084
39,809
1,668,781
-
74,697
(39,809)

4.7%
-100.0%
1,848,709
1,633,893
1,668,781
34,888

2.10/0
159,134
18,201
79,396
177,334
(12,779)
256,730
(92,175)
79,396
-0.7%

44.8%
177,334
256,730
243,951
(12,779)
-5.0%
Service Level C Fund reflects the collection of benefit assessments charged to property owners for the purpose of providing perimeter landscaping and slope maintenance throughout the City. Service Level C assesses only those parcels within residential subdivisions receiving TCSD perimeter landscaping and slope maintenance and are separated into 32 zones. The rate levels for Zones 6 and 29, are subject to a Consumer Price Index - Urban Consumers (CPI-U) annual inflator while all other rate levels will not increase. Zones 30-32 will not be assessed, as the property owners have elected to have the landscaping maintained by the respective Homeowner's Associations (HOAs).

Analysis/Comments
Service Level C Fund revenue will decrease slightly due to a decrease in interest income. FY25-26 expenditures will increase by 2.1% due increased cost of landscape maintenance and a decrease in transfers out to other funds.

Annual Operating Budget 1 117

—_�� - '�_�, ratn � ��*..� d=��•��. ��} `-,� mow..

T+ •, 1
r' '

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
380 - SARDA DEBT SERVICE FUND SUMMARY
2024-2025
2025-2026
2023-2024
Current
Proposed
Increase/
Increase/
Description
Actuals
Budget
Budget
(Decrease)
Decrease
Revenues by Source
Taxes and Franchises

REDEVELOPMENT PROPERTY TAX FUND
7,568,475
6,980,394
(588,081)

7.8%

DISTRIBUTION
Use of Money and Property

INVESTMENT INTEREST
208,800
173,208
165,629
(7,579)
-4.4%
Operating Transfers In

OPERATING TRANSFERS IN
7,049,778
-
-

0.0%
Revenues/Other Sources
7,258,578
7,741,683
7,146,023
(595,660)
-7.7%
Expenditures by Category

OPERATIONS & MAINTENANCE
1,570,244
299,500
1,479,497
1,179,997
394.0%

DEBT SERVICE - PRINCIPAL
-
2,860,000
2,860,000
-

0.0%

DEBT SERVICE - INTEREST
2,867,313
2,751,144
2,751,144

0.0%

TRANSFERS
732,503
750,000
-
(750,000)
-100.0%
Expenditures/Other Financing Uses
5,170,059
6,660,644
7,090,641
429,997

6.50/0
Net Revenues
2,088,519
1,081,039
55,382
(1,025,657)
-1.2%
Fund Balance, Beginning of Year
(36,380,478)
(34,291,959)
(33,210,921)
1,081,039

3.2%
Fund Balance, End of Year
(34,291,959)
(33,210,921)
(33,155,539)
55,382

0.2%
Fund Description
The Successor Agency to the Redevelopment Agency (SARDA) Debt Service Fund was established to account for payment obligations of the Successor Agency as a result of the State's dissolution of Redevelopment Agencies. This is a private -purpose trust fund that is used to account for resources held and administered by the SARDA acting in a fiduciary capacity for other governments.

Analysis/Comments
SARDA revenue is associated with the former Redevelopment Agency's Recognized Obligation Payment Schedule (ROPS) and varies based on the obligations for each given fiscal year. The funds are transferred to the Capital Improvement Program Fund to support Affordable Housing projects. Debt Service expenditures are for the 2017A and 2017B Tax Allocation Refunding Bonds.

Annual Operating Budget 1 119

CITY OF TEMECULA

INTERNAL SERVICE FUNDS
Internal Service Funds (ISFs) are used to account for the funding of goods and services provided by one department to other benefitting departments on a cost -reimbursement basis. 120 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL

INTERNAL SERVICE FUNDS
2024-2025
2025-2026
2023-2024
Current
Proposed
Increase/
% Increase/
Description
Actuals
Budget
Budget
(Decrease)
Decrease
300 - INSURANCE FUND
4065

INVESTMENT INTEREST
28,590
37,615
52,725
15,110

40.2%
4076

REIMBURSEMENTS
396,641
-
-
-

0.0%
4176

CHARGES FOR SERVICES
3,827,116
3,115,169
3,800,317
685,148

22.0%
4545
GASB 31 - FMV ON INVESTMENTS
8,392
-
-
-

0.0%
6001

TRANSFER IN FROM GENERAL FUND
-
1,172,672
-
(1,172,672)
-100.0%

TOTAL INSURANCE FUND
4,260,738
4,325,456
3,853,042
(472,414)
-10.9%
305 - WORKERS' COMPENSATION FUND
4065

INVESTMENT INTEREST
44,827
29,262
29,354
92 0.3%
4176

CHARGES FOR SERVICES
-
556,470
601,030
44,560

8.0%
4545
GASB 31 - FMV ON INVESTMENTS
13,667
-
-
-

0.0%
6001

TRANSFER IN FROM GENERAL FUND
-
436,678
-
(436,678)
-100.0%

TOTAL WORKERS' COMPENSATION FUND
58,495
1,022,410
630,384
(392,026)
-38.3%
310 - VEHICLES AND EQUIPMENT FUND
4065 INVESTMENT INTEREST
4176 CHARGES FOR SERVICES
4545 GASB 31 - FMV ON INVESTMENTS

TOTAL VEHICLES AND EQUIPMENT FUND
320 - INFORMATION TECHNOLOGY FUND
4065 INVESTMENT INTEREST
4176 CHARGES FOR SERVICES
4545 GASB 31 - FMV ON INVESTMENTS
6002 TRANSFER IN FROM MEASURES FUND

TOTAL INFORMATION TECHNOLOGY FUND
325 - TECHNOLOGY REPLACEMENT FUND
4065 INVESTMENT INTEREST
4176 CHARGES FOR SERVICES
4545 GASB 31 - FMV ON INVESTMENTS
6320 TRANSFER IN FROM INFORMATION

TECHNOLOGY FUND

TOTAL TECHNOLOGY REPLACEMENT FUND
330 - SUPPORT SERVICES FUND
4065 INVESTMENT INTEREST
4176 CHARGES FOR SERVICES
4545 GASB 31 - FMV ON INVESTMENTS

TOTAL SUPPORT SERVICES FUND
117,473
111,043
119,763
8,720

7.9%
432,332
505,284
511,907
6,623

1.3%
37,481
-
-
-

0.0%
587,286
616,327
631,670
15,343

2.5%
31,462
22,583
25,533
2,951

13.1%
5,847,141
6,586,001
6,927,781
341,780

5.2%
13,145
-
-
-

0.0%
300,000
300,000
300,000
-

0.0%
6,191,747
6,908,584
7,253,314
344,731

5.0%
97,971 192,909 119,388 (73,521) -38.1%
164,530 255,842 321,333 65,491 25.6%
30,365 - - - 0.0%
- 1,748,615 - (1,748,615)-100.0%
292,866 2,197,366 440,721 (1,756,645) -79.9%
383 510 321 (190) -37.2%
341,356 429,895 387,827 (42,068) -9.8%
404 - - 0.0%
342,144 430,405 388,148 (42,258) -9.8%
Annual Operating Budget 1 121

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

REVENUE DETAIL

INTERNAL SERVICE FUNDS
2024-2025
2025-2026
2023-2024 Current
Proposed
Increase/
% Increase/
Description
Actuals Budget
Budget
(Decrease)
Decrease
335 - SUPPORT SERVICES REPLACEMENT FUND
4065 INVESTMENT INTEREST
12,388 11,923
12,729
806

6.8%
4176 CHARGES FOR SERVICES
33,101 28,165
30,881
2,716

9.6%
4545 GASB 31 - FMV ON INVESTMENTS
4,002 -
-
-

0.0%
TOTAL SUPPORT SERVICES REPLACEMENT FUND 49,490 40,088
43,610
3,522

8.8%
340 - FACILITIES FUND
4065 INVESTMENT INTEREST
4076 REIMBURSEMENTS
4176 CHARGES FOR SERVICES
4545 GASB 31 - FMV ON INVESTMENTS

TOTAL FACILITIES FUND
350 - FACILITY REPLACEMENT FUND
4065 INVESTMENT INTEREST
4176 CHARGES FOR SERVICES
4545 GASB 31 - FMV ON INVESTMENTS
6002 TRANSFER IN FROM MEASURES FUND
6340 TRANSFER IN FROM FACILITIES FUND

TOTAL FACILITY REPLACEMENT FUND
15,082
12,533
13,001
468

3.7%
24,000
48,000
24,000
(24,000)
-50.0%
1,648,283
1,703,247
1,645,947
(57,300)
-3.4%
5,551
-
-

0.0%
1,692,915
1,763,780
1,682,948
(80,832)
-4.6%
33,251
88,524
111,755
23,230

26.2%
92,005
118,313
121,550
3,237

2.7%
12,008
-
-
-

0.0%
2,550,000
2,500,000
1,250,000
(1,250,000)
-50.0%
-
606,326
-
(606,326)
-100.0%
2,687,264
3,313,164
1,483,305
(1,829,859)
-55.2%
122 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Description
300 - INSURANCE FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed
Actuals Budget Budget
Increase/
(Decrease)
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges

CHARGES FOR SERVICES
3,827,116
3,115,169
3,800,317
685,148

22.0%
Use of Money and Property

INVESTMENT INTEREST
36,981
37,615
52,725
15,110

40.2%
Reimbursements

OTHER REIMBURSEMENTS
396,641
-
-
-

0.0%
Operating Transfers In

OPERATING TRANSFERS IN
-
1,172,672
-
(1,172,672)
-100.0%
Revenues/Other Sources
4,260,738
4,325,456
3,853,042
(472,414)
-10.90/0
Expenditures by Category

SALARIES & BENEFITS
221,774
207,956
273,054
65,097

31.3%

OPERATIONS & MAINTENANCE
3,605,342
3,282,213
3,527,263
245,050

7.5%
Expenditures/Other Financing Uses
3,827,116
3,490,169
3,800,317
310,148

8.90/0
Net Revenues
433,622
835,287
52,725
(782,562)
-2.1%
Fund Balance, Beginning of Year
756,091
1,189,713
2,025,000
835,287

70.2%
Fund Balance, End of Year
1,189,713
2,025,000
2,077,725
52,725

2.6%
Fund Description
The Insurance Fund was established to account for the City's liability and property insurance costs. Fund Balance is a combination of both spendable and non -spendable assets. These costs are allocated to each department based on the total number of Full Time Equivalent positions assigned to those departments. The City has a Self -Insured Retention (SIR) of $500,000 per incident and strives to maintain a fund balance equal to three times the SIR.

Analysis/Comments
For FY25-26, the Insurance Fund revenue is projected to decrease by 10.9% overall. This includes a 22.0% increase in Charges for Services and a 40.2% increase in investment interest earnings. Offsetting these revenue increases is a 100.0% decrease in the Operating Transfer In revenue from the General Fund that was used in the prior year to maintain appropriate Fund Balance levels. Expenditures are increasing by 8.9%, primarily due to higher insurance premiums expected in FY25-26.

Annual Operating Budget 1 123

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
305 - WORKERS' COMPENSATION FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/
Description Actuals Budget Budget (Decrease)
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges

CHARGES FOR SERVICES
-
556,470
601,030
44,560

8.0%
Use of Money and Property

INVESTMENT INTEREST
58,495
29,262
29,354
92 0.3%
Operating Transfers In

OPERATING TRANSFERS IN
-
436,678
-
(436,678)
-100.0%
Revenues/Other Sources
58,495
1,022,410
630,384
(392,026)
-38.3%
Expenditures by Category

SALARIES & BENEFITS
221,773
193,674
273,564
79,890

41.2%

OPERATIONS & MAINTENANCE
289,371
370,756
383,605
12,849

3.5%
Expenditures/Other Financing Uses
511,143
564,429
657,169
92,739

16.4%
Net Revenues
(452,649)
457,980
(26,785)
(484,766)
-18.9%
Fund Balance, Beginning of Year
1,499,975
1,047,326
1,505,306
457,980

43.7%
Fund Balance, End of Year
1,047,326
1,505,306
1,478,521
(26,785)
-1.8%
Fund Description
The Workers' Compensation Fund was established in Fiscal Year 2014-15 as the City transitions to a self -insured status for Workers' Compensation liabilities. Departments are charged based on each position allocated on a Full Time Equivalent basis, with a cost assigned to each position based on job duties and potential for risk. The desired Net Position for this fund is $1.5 million, which represents three times the City's Self - Insured Retention amount of $500,000.

Analysis/Comments
For FY25-26, the Workers' Compensation Fund revenue is expected to decrease by 38.3%. This includes a 100.0% reduction of the Operating Transfer In from the General Fund, which was required in the previous year to maintain appropriate Fund Balance levels. Partially offsetting this reduction is an increase in Charges for Services of 8.0%. In general, revenue reflects the Internal Service Fund allocation to departments necessary to maintain the desired fund balance. Expenditures are projected to increase by 16.4%, primarily due to a 41.2% increase in Salaries & Benefits, due to the new allocation of a Management Assistant assigned to this Fund. 124 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
310 -VEHICLES AND EQUIPMENT FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/
Description Actuals Budget Budget (Decrease)
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges

CHARGES FOR SERVICES
432,332
505,284
511,907
6,623

1.3%
Use of Money and Property

INVESTMENT INTEREST
154,954
111,043
119,763
8,720

7.9%
Revenues/Other Sources
587,286
616,327
631,670
15,343

2.5%
Expenditures by Category

OPERATIONS & MAINTENANCE
429,526
-
429,527
429,527
100.0%

CAPITAL OUTLAY
1,408
279,050
370,000
90,950

32.6%
Expenditures/Other Financing Uses
430,934
279,050
799,527
520,477
186.5%
Net Revenues
156,352
337,277
(167,857)
(505,134)

59.8%
Fund Balance, Beginning of Year
5,249,290
5,405,642
5,742,918
337,277

6.2%
Fund Balance, End of Year
5,405,642
5,742,918
5,575,061
(167,857)
-2.9%
Fund Description
The Vehicles and Equipment Fund was established to account for the depreciation of vehicles and capital equipment over their estimated useful lives, and to accumulate resources for the purchase of future replacement vehicles and equipment. Fund Balance is a combination of both spendable and non spendable assets. Departments are charged based on the replacement costs for each asset benefitting the department.

Analysis/Comments
The Vehicles and Equipment Fund expenditures include the replacement of several fleet vehicles and heavy equipment that have reached the end of their useful life. For FY25-26, expenditures are increasing by 186.5% over the prior year. This includes a 100.0% increase in Operations & Maintenance to account for depreciation expenses and a 32.6% increase in Capital Outlay to replace an aging dump truck and the purchase of a boom truck.

Annual Operating Budget 1 125

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
320 - INFORMATION TECHNOLOGY FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service Charges

CHARGES FOR SERVICES
Use of Money and Property

INVESTMENT INTEREST
Operating Transfers In

CONTRIBUTION FROM MEASURES
Revenues/Other Sources
Expenditures by Category

SALARIES & BENEFITS

OPERATIONS & MAINTENANCE

INTERNAL SERVICE FUND ALLOCATIONS

CAPITAL OUTLAY

TRANSFERS
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
5,847,141
6,586,001
6,927,781 341,780 5.2%
44,606
22,583
25,533 2,951 13.1%
300,000
300,000
300,000 - 0.0%
6,191,747
6,908,584
7,253,314 344,731 5.00/0
2,882,293
3,126,462
3,312,956
186,494

6.0%
3,184,590
3,595,797
3,914,825
319,028

8.9%
2,660
2,660
-
(2,660)
-100.0%
(475,258)
-

0.0%
-
1,748,615
-
(1,748,615)
-100.0%
5,594,285
8,473,534
7,227,781
(1,245,753)
-14.7%
597,462
(1,564,951)
25,533
1,590,484
-5.9%
1,792,752
2,390,214
825,263
(1,564,951)
-65.5%
2,390,214
825,263
850,797
25,533

3.1%
The Information Technology Fund was established to fund and account for computer and telephone system operating and maintenance expenses.

Fund Balance is a combination of both spendable and non -spendable assets. Adjustments are made to Fund Balance to include additional spendable resources available for expenditure. Departments are charged based on the number of electronic devices assigned. The Ronald H. Roberts Temecula Public Library facility is charged directly for all IT expenditures and personnel costs related to the facility.

Analysis/Comments
For FY25-26, the Information Technology Fund revenues are increasing by 5.0%, which includes a 13.1% increase in investment interest earnings.

Expenditures are decreasing by a total of 14.7% due primarily to the 100.0% reduction in the transfer of accumulated fund balance to Fund 325 - Technology Replacement Fund. Offsetting this decrease is a 6.0% increase in Salaries & Benefits and a 8.9% increase in Operations & Maintenance expenses.
126 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
325 - TECHNOLOGY REPLACEMENT FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service Charges

CHARGES FOR SERVICES
Use of Money and Property

INVESTMENT INTEREST
Operating Transfers In

OPERATING TRANSFERS IN
Revenues/Other Sources
Expenditures by Category

OPERATIONS & MAINTENANCE

CAPITAL OUTLAY

TRANSFERS
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
Fund Description
164,530 255,842 321,333 65,491 25.6%
128,336 192,909 119,388 (73,521) -38.1%
-
1,748,615
-
(1,748,615)
-100.0%
292,866
2,197,366
440,721
(1,756,645)
-79.9%
151,157
-
62,028
-
496,071
701,506
151,158
365,000
-
151,158
(131,071)
(701,506)
100.0%
-26.4%
-100.0%
213,186
1,197,577
516,158
(681,419)
-56.9%
79,680
3,026,610
999,789
3,106,290
(75,437)
4,106,079
(1,075,226)
999,789
-71.8%

32.2%
3,106,290
4,106,079
4,030,642
(75,437)
-1.8%
The Technology Replacement Fund was established in Fiscal Year 2014-15 in order to accumulate resources for computer and telephone equipment and software to fund future equipment replacement. Fund Balance is a combination of both spendable and non -spendable assets. Contributions to this fund are made by departments utilizing the assets in an amount equivalent to the estimated cost to replace the item at the end of its useful life.

Analysis/Comments
The Technology Replacement Fund expenditures in FY25-26 includes $365,000 budgeted for the replacement of the City's computers, network switch, phone system and the audio equipment at the Community Recreation Center amphitheater.

Annual Operating Budget 1 127

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
330 - SUPPORT SERVICES FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed
Description Actuals Budget Budget
Increase/
(Decrease)
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges

CHARGES FOR SERVICES
341,356
429,895
387,827
(42,068)
-9.8%
Use of Money and Property

INVESTMENT INTEREST
788
510
321
(190)
-37.2%
Revenues/Other Sources
342,144
430,405
388,148
(42,258)
-9.80/0
Expenditures by Category

SALARIES & BENEFITS
248,422
273,894
253,827
(20,067)
-7.3%

OPERATIONS & MAINTENANCE
107,387
134,000
134,000

0.0%
Expenditures/Other Financing Uses
355,810
407,894
387,827
(20,067)
-4.9%
Net Revenues
(13,666)
22,511
320
(22,191)
-7.4%
Fund Balance, Beginning of Year
13,811
145
22,656
22,511
15540.7%
Fund Balance, End of Year
145
22,656
22,976
320

1.4%
Fund Description
The Support Services Fund was established as a cost center for the City's central receptionist, duplicating, printing, and mailing activities. It is also used to depreciate all related copying and mailing equipment over their useful lives, and to accumulate resources for the purchase of future equipment. Fund Balance is a combination of both spendable and non -spendable assets. Departments are charged based on a count of copies made in the previous fiscal year.

Analysis/Comments
The Support Services Fund expenditures are projected to decrease 7.3% due to fewer positions allocated to this Fund in FY25-26. 128 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
335 - SUPPORT SERVICES REPLACEMENT FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

CHARGES FOR SERVICES
Use of Money and Property

INVESTMENT INTEREST
Revenues/Other Sources
Expenditures by Category

OPERATIONS & MAINTENANCE

CAPITAL OUTLAY
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
33,101
28,165
30,881
2,716

9.6%
16,389
11,923
12,729
806

6.8%
49,490
40,088
43,610
3,522

8.80/0
42,394 - 42,200 42,200 100.0%
- 13,600 30,000 16,400 120.6%
42,394 13,600 72,200 58,600 430.9%
7,097
26,488
(28,590)
(55,078)
115.7%
378,901
385,998
412,485
26,488

6.9%
385,998 412,485 383,895 (28,590) -6.9%
Fund Description
The Support Services Replacement Fund was established to accumulate resources for the future replacement of the City's duplicating equipment.

Analysis/Comments
The Support Services Replacement Fund expenditures include funding for the annual replacement of the City's copiers.

Annual Operating Budget 1 129

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
340 - FACILITIES FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed Increase/ Increase/
Description Actuals Budget Budget (Decrease) Decrease
Revenues by Source
Licenses, Permits and Service
Charges

CHARGES FOR SERVICES
Use of Money and Property

INVESTMENT INTEREST
Reimbursements

OTHER REIMBURSEMENTS
Revenues/Other Sources
Expenditures by Category

SALARIES & BENEFITS

OPERATIONS & MAINTENANCE

TRANSFERS
Expenditures/Other Financing Uses
Net Revenues
Fund Balance, Beginning of Year
Fund Balance, End of Year
1,648,283 1,703,247 1,645,947 (57,300) -3.4%
20,632 12,533 13,001 468 3.7%
24,000
48,000
24,000
(24,000)
-50.0%
1,692,915
1,763,780
1,682,948
(80,832)
-4.6%
551,526
1,117,389
-
620,666
1,087,752
606,326
691,687
954,260
-
71,022
(133,492)
(606,326)

11.4%
-12.3%
-100.0%
1,668,915
2,314,743
1,645,947
(668,796)
-28.90/0
24,000
582,326
(550,963)
606,326
37,001
55,363
587,964
(550,963)
-18.4%
-90.9%
606,326
55,363
92,364
37,001

66.8%
Fund Description
The Facilities Fund was established to account for the cost of the Civic Center, Former City Hall Facility, City Maintenance Facility, Field Operations Center, and Civic Center Parking Structure operations and maintenance. Fund Balance is a combination of both spendable and non -spendable assets. Departments are charged based on square footage allotted as well as full time staff equivalents assigned.

Analysis/Comments
The Facilities Fund expenditures are decreasing by 28.9% due to the one-time transfer of excess fund balance to Fund 350-Facilities Replacement in FY24-25.
130 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
350 - FACILITY REPLACEMENT FUND SUMMARY
2024-2025 2025-2026
2023-2024 Current Proposed
Description Actuals Budget Budget
Increase/
(Decrease)
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service Charges

CHARGES FOR SERVICES
92,005
118,313
121,550
3,237

2.7%
Use of Money and Property

INVESTMENT INTEREST
45,259
88,524
111,755
23,230

26.2%
Operating Transfers In

OPERATING TRANSFERS IN
-
606,326
-
(606,326)
-100.0%

CONTRIBUTION FROM MEASURES
2,550,000
2,500,000
1,250,000
(1,250,000)
-50.0%
Revenues/Other Sources
21687,264
3,313,164
1,483,305
(1,829,859)
-55.2%
Expenditures by Category

OPERATIONS & MAINTENANCE
87,338
-
87,338
87,338
100.0%

CAPITAL OUTLAY
3,074
82,276
-
(82,276)
-100.0%

TRANSFERS
604,731
2,722,395
1,000,000
(1,722,395)
-63.3%
Expenditures/Other Financing Uses
695,143
2,804,671
1,087,338
(1,717,333)
-61.2%
Net Revenues
1,992,122
508,493
395,967
(112,526)
-58.0%
Fund Balance, Beginning of Year
652,133
2,644,255
3,152,748
508,493

19.2%
Fund Balance, End of Year
2,644,255
3,152,748
3,548,715
395,967

12.6%
Fund Description
The Facility Replacement Fund was established to accumulate resources for the future replacement of equipment, systems and fixtures within City - owned facilities.

Analysis/Comments
The Facilities Replacement fund is augmented with a contribution from Measure S in order to accumulate resources to replace City facilities.

Expenditures include a transfer of $1,000,000 to the Capital Improvement Program for the City Facilities Rehabilitation project.

Annual Operating Budget 1 131

CITY OF TEMECULA

CAPITAL IMPROVEMENT

PROGRAM FUND
Local governments undertake capital projects to acquire, develop, improve or maintain various facilities, other infrastructure and/or equipment. These projects are generally large in scale, require significant funding and are long-term. A Capital Projects Fund is used to account for the financial resources supporting capital projects during the life of the project. 132 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Funds: 210 - CAPITAL IMPROVEMENT PROGRAM FUND
2024-2025 2025-2026
2023-2024 Current Proposed Increase/
Description Actuals Budget Budget (Decrease)
Revenues by Source
Licenses, Permits and Service
Charges

QUIMBY FEES
987,936

DEVELOPMENT IMPACT FEES
(515,300)
Intergovernmental Revenues
GRANTS
790,528
Reimbursements

CAPITAL IMPROVEMENT PROGRAM
55,295,452

PECHANGA IGA
850,000
Operating Transfers In

OPERATING TRANSFERS IN
4,596,467

CONTRIBUTION FROM MEASURES
11,388,867
Revenues/Other Sources
73,393,950
Expenditures by Category
CIP
70,852,447
Expenditures/Other Financing Uses
70,852,447
Net Revenues
2,541,504
Fund Balance, Beginning of Year
6,702,714
Fund Balance, End of Year
9,244,218
Increase/
Decrease
2,587,966
1,516,240
(1,071,726)
-41.4%
11,692,611
2,710,370
(8,982,241)
-76.8%
4,133,528
120,000
(4,013,528)
-97.1%
104,252,632
1,552,850
(102,699,782)
-98.5%
-
-

0.0%
51,297,789
9,501,791
(41,795,998)
-81.5%
34,454,272
8,809,109
(25,645,163)
-74.4%
208,418,797
24,210,360
(184,208,437)
-88.4%
207,707,379
26,594,817
(181,112,562)
-87.2%
207,707,379
26,594,817
(181,112,562)
-87.2%
711,418
9,244,218
(2,384,457)
9,955,636
(3,095,875) -87.8%
711,418 7.7%
9,955,636
7,571,179
(2,384,457) -24.0%
Fund Description
This fund was established to account for the City's Capital Improvement Program revenues and expenditures.

Analysis/Comments
The Capital Improvement Fund revenues and expenditures fluctuate each year as projects are identified. Many projects are programmed in their initial year and, if not completed, the funds are rolled forward to the subsequent year.

Annual Operating Budget 1 133

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
134 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
The City Council adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The QLMP defines the strategic priorities of Temecula's residents,E C OL �9
leaders, and partners for the City's next twenty years. It reflects the vision for the City's future and commits the City to a performance based process to accomplish those goals.UR p
This Ian was developed b engagingresidents businesses local institutions and regional p p Ypartners in an inclusive process.

In an effort to incorporate the QLMP into the City's budget process, City of Temecula Executive Staff developed Goals based on the Core Values of the Quality of Life Master Plan. These goals are used by each Department to develop Performance Measures that link back to the City's Core Values developed through the QLMP process.

CORE VALUES LEGEND:

Safe & Prepared Community
Transportation Mobility & Connectivity
Healthy & Livable City
Economic Prosperity
92 Sustainable & Resilient City
Accountable & Responsive City Government
Equity
Annual Operating Budget 1 135

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Five -Year Long -Term ..l Performance Measure 2i2025-26 Actuals Target Target
CITY COUNCIL `"OGo to Department Section
kJBea
sustainable community that embraces
residents' of life
Resident satisfaction with Temecula's crime rate,
based on citizen survey
85%
85%
85%
quality
©Ensure
transparency in all aspects of City
Number of City Council committee assignments
56 50-60
50-60
government
Foster a healthy environment and prosperous
Number of projects completed from the Quality
1 1
2 opportunities for all residents of Temecula
of Life Master Plan
CITY COUNCIL- COMMUNITY SUPPORT ""♦Go to Department Section Value the growth of non-profit organizations,
Number of nonprofit organizations awarded
churches, temples, mosques, and other places
grants through the Community Service Funding
22 25-30
25-30
of worship
and the City Council Grant Programs
the growth of non-profit organizations,
Total funding awarded to support nonprofit
®Value
churches, temples, mosques, and other places
programs through the Community Service
$125,000
$125,000
$125,000
of worship
Funding and City Council Grant Programs
CITY MANAGER "'♦Go to Department Section
Number of public outreach messages, advisories,
®
Exhaust all methods of communication and
press releases or posts (in print or electronically)
1649
,
1,400-
1,400-
outreach between the City and its residents
shared with the community containing City
1,800
1,800
information
Percentage of annual budget that supports fire,
Remain one of the safest cities in California
police, first responders, and associated
55%
57%
Greater
and the nation
infrastructure/technology, for the safety and
than 50%
protection of Temecula citizens and businesses
community resiliency in
Number of agreements and contracts reviewed
®Develop
infrastructure, the economy, natural
and signed Citywide to maintain, promote and
439
350-400
350-400
resources, and hazard mitigation
preserve City assets/infrastructure
Provide the highest quality of service at the
Number of City Council Agendas developed and
©
most cost-effective rate while being fiscally
brought forward with policies, programs or
27 20-22
20-24
responsible
projects supported by the City Council for the
long-term solvency of the City of Temecula
136 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Five -Year Long -Term ..l Performance Measure 2i2025-26 �1[ FY FY FY
Actuals Target Target
dAL
OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT -'4Goto Department Section Bea sustainable community that embraces
Leading City efforts to attract and build higher
Wresidents'
quality of life
education hub (MSJC and CSLISM), measured by
2 2
2 engagements
Provide an entrepreneurial culture that offers
Number of local business site visits, meetings
a growing number of diverse high -paying jobs
and ribbon cuttings (to foster business
64 30
40-50
relationships)
®Foster
a healthy environment and prosperous
opportunities for all residents of Temecula
Number of no cost, professional workshops and
trainings to the business community via the TVE2
268
50 75
Ensure transparency in all aspects of City
Citywide social media posts - number of posts
©
across all platforms (Facebook, Instagram and
5 5
5 government
Twitter) within one week
CITY CLERK "4Go to Department Section
®Be
the most sustainable city in Southern
California
Percentage of electronic delivery of agenda and
materials
100%
100%
100%
®Be
the most sustainable city in Southern
California
Number of electronic WebCA requests
1,130
1,125
1,277
©Ensure
transparency in all aspects of City
Percentage of Public Records Act requests
in statutory time
100%
100%
100%
government
processed period
Ensure transparency in all aspects of City
Number of Council, Board, Committee,
©
Commission, and employee positions for annual
68 68
68 government
Conflict of Interest filings
©Ensure
transparency in all aspects of City
Percentage of open meeting / Public Notices
on or before statutory time
100%
100%
100%
government
published period
Annual Operating Budget 1 137

PERFORMANCE MEASURES
Safe & Prepared Community
ITransportation Mobility & Connectivity
Healthy & Livable City
Economic Prosperity
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Sustainable & Resilient City
Accountable & Responsive City Government
Equity
Five -Year Long -Term ..l Performance Measure 2i2025-26 Actuals Target Target
Provide the highest quality of service at the Percentage of positions cross -trained for o 0
most cost-effective rate while being fiscally departmental coverage 100% 100/ 100% responsible
FINANCE -"#Go to Department Section
Promote job growth in Temecula and nearby
areas
Number of business licenses issued
7,880
8,000
8,000
©Promote
innovation and adopt technology
that enhances access to information and data
Percentage of online business license renewals
81%
75%
85%
©Promote
innovation and adopt technology
that enhances access to information and data
Number of invoices processed via electronic
7,531
7,000
7,000
payment
©Promote
innovation and adopt technology
that enhances access to information and data
Number of vendors receiving electronic
versus checks
691
400
500
payments paper
HUMAN RESOURCES - MANAGEMENT `4Go to Department Section Promote innovation and adopt technology
that enhances access to information and data
Average number of days from opening of
recruitment to hire
57 70
70 a flexible organization which
Total number of seasonal employees that were
©Maintain
responds to the changing needs and priorities
successful in receiving the full hiring incentive
98%
0 95%
0 95/
of the community
©
Provide consistently professional services and
information to customers and constituents
Number of employment -related policies or
created or revised
3 49
3 guidelines
Support community -oriented policing and
Percentage of employees receiving professional
maximize community leadership in public
development and training (includes mandatory
NEW
NEW
90%
safety
training)
138 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

8.11 Less than
30 Less than
30 ©Provide
consistently professional services and
information to customers and constituents
Average customer service wait times (in
minutes) for Planning transactions

7.54 Less than
30 Less than
30 ©Promote
innovation and adopt technology
that enhances access to information and data
Average number of business days for online
inquiry response time for Planning
2 Less than
2 Less than
2 public
the highest quality of service at the
Percentage of Building Permits issued within 30
©Provide
most cost-effective rate while being fiscally
days
y
76 75
75 responsible
the highest quality of service at the
Average number of days from application to
©Provide
most cost-effective rate while being fiscally
issuance for Building Permits
27 30
30 responsible
the highest quality of service at the
Average number of business days for Planning
©Provide
most cost-effective rate while being fiscally
26 21
21 responsible
Case Reviews
Annual Operating Budget 1 139

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Five -Year Long -Term ..2025-26
Actuals Target Target
Provide the highest quality of service at the Average number of business days for submittal most cost-effective rate while being fiscally reviews for Temporary Use Permits 23 14 14 responsible
the highest quality of service at the Average number of business days for submittal ©Provide
most cost-effective rate while being fiscally reviews for Massage 21 21 21 responsible
COMMUNITY DEVELOPMENT- LONG RANGE PLANNING '"4Goto Department Section Be a diverse community that values and
Number of Housing Element Programs
supports people of all ages, backgrounds,
completed
4 4
4 cultures, disabilities and religious beliefs
Establish a connected pedestrian, bicycle and
equestrian transportation system
Number of miles of bike lanes striped

2.8 5
2 COMMUNITY DEVELOPMENT- BUILDING & SAFETY "4Go to Department Section the highest quality of service at the
Average number of business days for online
©Provide
most cost-effective rate while being fiscally
public inquiry response for Building and Safety
2 2
2 responsible
a flexible organization which
Average number of business days for inspection
©Maintain
responds to the changing needs and priorities
delay for Building and Safety
1 2
2 of the community
©Promote
innovation and adopt technology
that enhances access to information and data
Percentage of online Building and Safety
transactions
74%
75%
75%
a flexible organization which
©Maintain
�
responds to the changing needs and priorities
Number of inspections per person, per day

33.5 20
20 of the community
COMMUNITY DEVELOPMENT- CODE ENFORCEMENT '"#Go to Department Section Promote innovation and adopt technology
Average number of business days for response
a
that enhances access to information and data
time of online public inquiries for Code
1 3
3 Enforcement
140 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
V "0
al ru
Five -Year Long -Term ..2025-26
Actuals Target Target
Provide effective enforcement of City zoning, Number of hours for turnaround time for graffiti building, fire and grading codes, and graffiti 48 48 48 abatement
abatement
nProvide
effective enforcement of City zoning, Average number of business days for Code Case R
building, fire and grading codes, and graffiti 8 30 30
abatement time open
SARDA "4Go to Department Section
a diverse community that values and
Number of agreements with an affordable
®Be
supports people of all ages, backgrounds,
housing developer for the use of available Tax
0 1
1 cultures, disabilities and religious beliefs
Allocation Bond proceeds
COMMUNITY DEVELOPMENT- CDBG '"#Go to Department Section ©Ensure
transparency in all aspects of City
Number of objectives completed for the Five-
Year Consolidated Plan
4 4
4 government
©Ensure
transparency in all aspects of City
Number of HUD timeliness tests met
1 1
1 government
COMMUNITY DEVELOPMENT - ADMINISTRATION "'♦Coto Department Section Ensure transparency in all aspects of City
government
Average number of business days to fulfill
records requests for all departments
5 12
12 PUBLIC WORKS -LAND DEVELOPMENT _-4Goto Department Section Provide consistently professional services and
information to customers and constituents
Average of business days to complete 1st plan
check
15 10
13 ©Provide
consistently professional services and
information to customers and constituents
Percentage of development inspections
completed within 48 hours of requested time
90%
90%
90%
Annual Operating Budget 1 141

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Five -Year Long -Term ..2025-26
Actuals Target Target
Provide consistently professional services and Percentage of QLess appointments staff 85% 90% 90% information to customers and constituents responds to within 5 minutes of scheduled time PUBLIC WORKS -TRAFFIC ENGINEERING 'q#Go to Department Section Remain one of the safest cities in California
Percentage of citizen requests staff responds to
12 and the nation
within 5 business days
95%
95%
95%
Remain one of the safest cities in California
Percentage of traffic call -outs staff responds to
Fes!
and the nation
within 2 hours to resolve traffic signal
95%
95%
95%
malfunctions
Maintain and improve our roadway network
Average number of business days to complete
10 10
10 first plan check of traffic control plans
PUBLIC WORKS -STREET MAINTENANCE --#Go to Department Section ®Bea
sustainable community that embraces
residents' life
Total number of street trees trimmed each year
3,255
5,500
3,050
quality of
Provide effective enforcement of City zoning,
Percentage of graffiti reports completed within
building, fire and grading codes, and graffiti
24 hours
o
95%
0 95%
0 95%
abatement
Minimize impact to life, property and the
Total number of storm drain inlets
environment from natural hazards and
inspected/cleaned
2,435
3,035
3,500
emergency situations
Maintain and improve our roadway network
Total number of street signs replaced, repaired
and installed
1,160
2,140
1,300
Maintain and improve our roadway network
Total square feet of asphalt repairs completed
53,370
185,000
100,000
each year
142 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Erw
Five -Year Long -Term ..2025-26
Actuals Target Target
Maintain and improve our roadway network Total linear feet of traffic lanes, bike lanes & 3,267,171 2,857,760 3,430,530 curbs
painted
PUBLIC WORKS -CAPITAL IMPROVEMENT PROGRAM '`4Go to Department Section ©Ensure
transparency in all aspects of City
Percentage of projects completed on schedule
and within budget
75%
90%
90%
government
Provide the highest quality of service at the
Total lane miles of pavement rehabilitation
most cost-effective rate while being fiscally
projects completed each year
87 12
10 ■"_
responsible
PUBLIC WORKS - FACILITY MAINTENANCE "#Goto Department Section Be the most sustainable city in Southern
California
Number of facility energy efficiency upgrades
each
10 10
10 performed year
the highest quality of service at the
Average number of facility service order requests
©Provide
most cost-effective rate while being fiscally
completed each year
900
1,650
2,000
responsible
PUBLIC WORKS - PARKS MAINTENANCE - +Go to Department Section ®Be
a sustainable community that embraces
residents' quality of life
Number of trees trimmed in parks, slopes and
medians each year
3,091
2,500
3,200
®Be
the most sustainable city in Southern
California
Average number of park site energy efficiency
lighting system conversions each
8 6
6 year
©
Provide consistently professional services and
information to customers and constituents
Average number of parks maintenance service
order requests completed each
1,452
2,500
1,500
year
the highest quality of service at the
Average number of City park rehabilitation and
©Provide
most cost-effective rate while being fiscally
repair projects completed each year
10 10
6 responsible
Annual Operating Budget 1 143

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

Goal is 150 devices across five
New
New
85%
quality
per year, phases
Be a sustainable community that embraces
Percentage of City businesses inspected annually
®
residents' quality of life
to verify permit requirements and stormwater
New
New
o
95%
pollution compliance
Be a sustainable communitythat embraces
Percentage of Stormwater Best Management
residents' quality of life
Practices (BMPs) inspected annually to ensure
New
New
o
70%
these devices are functioning and effective
SHERIFF'S OFFICE - ADMINISTRATION -'#Go to Department Section Remain one of the safest cities in California
Number of management team with Advanced
1 8
7 �j
and the nation
Incident Command System training
Provide consistently professional services and
information to customers and constituents
Number of fingerprint cards and live scans taken
at the mall and substation
4,252
3,400
4,500
SHERIFF'S OFFICE - INVESTIGATIONS/SPECIAL TEAMS ""#Goto Department Section 13 Remain one of the safest cities in California
and the nation
Reduce property crimes
Reduce by
o
10%
Reduce by
0 10%
Reduce by
0 10%
SHERIFF'S OFFICE- TRAFFIC ENFORCEMENT -+Go to Department Section Be a sustainable community that embraces
residents' quality of life
Number of high visibility/ traffic checkpoints
4 4
20 Maintain and improve our roadway network
Number of DUI arrests
382
500
500
144 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
WrW
Five -Year Long -Term ..2025-26
Actuals Target Target
Maintain and improve our roadway network Number of traffic collision investigations 605 900 700 SHERIFF'S OFFICE -PATROL SERVICES 'q4GO to Department Section ®
Bea sustainable community that embraces
residents' of life
Number of overall calls for Police service
70,305
85,000
85,000
quality
J
Remain one of the safest cities in California
and the nation
Percentage of patrol officers maintaining 24-
hour skills training
90%
100%
100%
perishable
Minimize impact to life, property and the
Average response time (in minutes) for priority 1
environment from natural hazards and
calls from the time it is dispatched to the time

5.0 4.5

4.0 emergency situations
officers arrive
FIRE -EMERGENCY MANAGEMENT -'"#Go to Department Section Support community oriented policing and
Number of community outreach events
maximize community leadership in public
conducted
12 5
10 safety
Minimize impact to life, property and the
Percentage of employees assigned to the
environment from natural hazards and
Management Team who are trained in
Incident Mana g
20%
60%
60%
the roles, responsibilities, and functions of the
emergency situations
Emergency Operations Center
Minimize impact to life, property and the
Number of external agreements developed to
environment from natural hazards and
support the execution of the Emergency
4 3
3 emergency situations
Management Program
Minimize impact to life, property and the
Percentage of Temecula Population enrolled in
environment from natural hazards and
the Citywide mass notification system
°
8/°
°
17%
°
17/0
emergency situations
Support community oriented policing and
Number of citizens trained in Community
maximize community leadership in public
Emergency Response Team training (CERT)
122
150
150
safety
Annual Operating Budget 1 145

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Five -Year Long -Term ..l Performance Measure 2i i
Actuals Target Target
FIRE -EMERGENCY OPERATIONS '"OGo to Department Section
Support community oriented policing and
Number of citizens trained in CPR, First Aid, and
maximize community leadership in public
healthcare provider CPR, and Stop the Bleed
900
900
900
safety
Program
Minimize impact to life, property and the
Average response time (in minutes) to City
environment from natural hazards and
emergency incidents
5 5
5 emergency situations
FIRE -FIRE MARSHAL "+Go to Department Section
Minimize impact to life, property and the
Number of Fire Department plan reviews
environment from natural hazards and
performed
6,000
5,500
5,000
emergency situations
Minimize impact to life, property and the
Number of Fire Department new construction &
✓
environment from natural hazards and
tenant improvement inspections performed
5,000
5,000
5,000
emergency situations
Minimize impact to life, property and the
environment from natural hazards and
Number of state mandated inspections
2,500
2,600
3,000
emergency situations
Minimize impact to life, property and the
✓
environment from natural hazards and
Number of annual inspections completed
3,000
4,000
4,000
emergency situations
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -COMMUNITY SERVICES ` 4Go to Department Section Bea sustainable community that embraces
Number of digital media communications,
®
residents' quality of life
including Around & About Temecula, Park
25 30
30 Adventure series, Alumni Project, and more
Provide accessible sports, recreational,
®
cultural, health/therapeutic and community
Maintain facility rentals >_85% of availability
85%
o
85/0
0 85/
engagement facilities, programs and
resources for all Temecula residents
Provide accessible sports, recreational,
®cultural,
health/therapeutic and community
Maintain 75% participation rate in contract
75%
75%
75%
engagement facilities, programs and
classes
resources for all Temecula residents
146 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Five -Year Long -Term EK .. i i
Actuals Target Target
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -RECREATION `",�Go to Department Section Provide accessible sports, recreational,
k2cultural,
health/therapeutic and community
Monthly attendance of teen gym at the CRC
300
300
300
engagement facilities, programs and
resources for all Temecula residents
Provide accessible sports, recreational,
®cultural,
health/therapeutic and community
Maintain field allocation at >_ 90% of availability
100%
100%
100%
engagement facilities, programs and
resources for all Temecula residents
Support community oriented policing and
Number of special needs participants provided
maximize community leadership in public
with swim lessons and water safety programs
141
140
140
safety
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - CITYWIDE EVENTS `4Goto Department Section Be a diverse community that values and
Number existing community events refreshed
supports people of all ages, backgrounds,
2 2
2 cultures, disabilities and religious beliefs
per year
Exhaust all methods of communication and
Number of social media posts and reels per year
outreach between the City and its residents
to promote City activities and to obtain more
75 75
75 community participation
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - ARTS & CULTURE `4Go to Department Section Partnerships with local vendors to enhance
®
Be a sustainable community that embraces
patron theater experiences in Old Town with
15 15
15 residents' quality of life
pre- and post -performance audience
engagement techniques
®Exhaust
all methods of communication and
outreach between the City and its residents
Number of social media posts per year
270
450
285
©Provide
consistently professional services and
information to customers and constituents
Number of active volunteers at the Temecula
Valley Museum
7 10
12 Annual Operating Budget 1 147

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
ore 5
..2025-261
Value Five -Year Long -Term Actuals Target Target
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -HUMAN SERVICES "4Go to Department Section Provide accessible sports, recreational,
®cultural,
health/therapeutic and community
Resource opportunities
30 35
37 engagement facilities, programs and
resources for all Temecula residents
Provide recreational and other activities for
youth
Human Service programs for at -risk youth
35 37
40 ®Foster
a healthy environment and prosperous
opportunities for all residents of Temecula
Number of Temecula resident resource
connections
New
New
1,000
®
Be a sustainable community that embraces
residents' quality of life.

Number of encampments cleared
New
New
150
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) -ADMINISTRATION ` 4Go to Department Section ®Foster
a healthy environment and prosperous
opportunities for all residents of Temecula
Complete departmental initiatives or analysis
6 6
6 Provide accessible sports, recreational,
®cultural,
health/therapeutic and community
Collaborate with Riverside County Law Library to
3 4
4 engagement facilities, programs and
offer law related classes to the public
resources for all Temecula residents
Provide accessible sports, recreational,
®cultural,
health/therapeutic and community
Computer classes provided in the technology
12 12
12 engagement facilities, programs and
homework center at the Temecula Public Library
resources for all Temecula residents
©Ensure
transparency in all aspects of City
government
Support City Manager's Office in Special Projects
8 8
8 INFORMATION TECHNOLOGY (IT) "q+Go to Department Section ©Promote
innovation and adopt technology
that enhances access to information and data
Number of City Council meetings supported with
audiovisual services
24 24
24 148 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

PERFORMANCE MEASURES
QSafe & Prepared Community Sustainable & Resilient City Ell Transportation Mobility & Connectivity © Accountable & Responsive City Government 6 Healthy & Livable City Equity
W Economic Prosperity
Five -Year Long -Term ..2025-26
Actuals
Target
Target
Promote innovation and adopt technology
that enhances access to information and data
Number of updates to the Temecula Outreach
Channel 3 and YouTube
106
100
100
the highest quality of service at the
Percentage of computers that need to be
©Provide
most cost-effective rate while being fiscally
replaced to adhere to the Computer Lifecycle
20%
20%
20%
responsible
Replacement Program
the highest quality of service at the
Reduce the number of open Helpdesk tickets to
©Provide
most cost-effective rate while being fiscally
an average of 75
37 40
40 responsible
INFORMATION TECHNOLOGY (IT) -SUPPORT SERVICES -'"+Go to Department Section the highest quality of service at the
Average number of hours to resolve Helpdesk
©Provide
most cost-effective rate while being fiscally
tickets for out of service copiers

2.5 4
4 responsible
Annual Operating Budget 1 149

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
150 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENTAL INFORMATION
The following section provides detailed information for each Department, including the Department's Mission, Services, Organizational Chart, Summary of Expenditures, Personnel, Prior Year Accomplishments and Objectives for the Current Fiscal Year.

Each Department's Objectives have been used to develop the operating budgets for the ensuing fiscal year. These objectives are linked to the Citywide long-term goals presented in the Introduction section of the budget. The long- term goals are then linked to the Core Values as identified in the City's Quality of Life Master Plan. Each Department's objectives are measurable and include performance measures which demonstrate the progress made in the recent fiscal years toward their objectives.

General Fund Departments
The General Fund serves as the City Council's primary operating fund used to finance the majority of City services including; Public Safety, Public Works, Community Development and City Administration.

Temecula Community Services District (TCSD) Departments The Temecula Community Services District (TCSD) was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs, community and human services and special events, and activities aimed at enhancing the high quality of life of our youth, teens, adults, seniors, and special needs population. The District also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, emergency dirt road maintenance, and library services.

Internal Service Fund (ISF) Departments
Internal Services Funds are used to account for the funding of goods and services provided by one department to another benefitting department on a cost -reimbursement basis. Departments providing internal services include Insurance, Workers' Compensation, Vehicles and Equipment, Information Technology, Support Services, and Facilities.

Annual Operating Budget 1 151

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
152 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The City Council is elected by the citizens of Temecula to adopt laws and set overall policy decisions for the City of Temecula. The City Council gives direction to the City Manager to ensure effective and efficient operation of the City and to identify the types and levels of programs and services that will maintain and enhance Temecula's high quality of life which is consistent with the City's adopted Quality of Life Master Plan (QLMP) Core Values as follows:

Safe & Prepared Community
Transportation Mobility & Connectivity
aHealthy & Livable City
Economic Prosperity

SERVICES
City Council
Sustainable & Resilient City
Accountable & Responsive City Government
® Equity
• Serves as a five -member voice on behalf of the City of Temecula as elected by the citizens. • Adopts laws and regulations that govern Temecula.
• Sets City fiscal policy and provides direction to the City Manager to balance a high quality of life with fiscally sustainable decisions.
• Represents the interests of the City of Temecula in local, regional, State, Federal, tribal and international affairs in addition to serving as members (or commissioners) for related agencies or organizations for the benefit of the City of Temecula.

Community Support
• Reviews annual funding applications from nonprofit organizations that provide services or programs to Temecula residents.
• Enters into agreements to disburse financial assistance, as budgeted Citywide, to multiple selected nonprofit organizations that benefit the residents of Temecula. 1 46
j
E)
Organizational Chart Expenditures by Category Personnel Performance Measures 154 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the City Council include:

City Council
• Provided an enhanced level of economic resource information, outreach, and assistance to citizens and businesses to support job creation and a prosperous, vibrant local economy within Temecula. (Economic Prosperity)
• Continued to make public safety a top priority by maintaining strategically staffed and structured Sheriff's Office and Fire Department, and equipping public safety personnel with modern technology, equipment, and apparatuses. (Safe & Prepared Community)
• Provided public outreach as a priority, engaging with citizens and businesses via social media, e-blasts, Channel 3, the City of Temecula website, Citywide newsletters, Press Releases, the Guide to Leisure Activities, presentations to the community, advertisements, and other means of communication. (Accountable & Responsive City Government)
• Introduced, implemented and communicated the Mayor's initiatives throughout the year. This included the Mayor's State of the City messages, such as public safety priorities including E-Bike safety awareness and regulations, Public Works projects including capital improvement projects and circulation infrastructure, business support opportunities for new/existing businesses and entrepreneurs, community events, promotion of the Sunset Market, and more. (Accountable & Responsive City Government) • Provided resources and assistance to businesses and entrepreneurs within the City of Temecula that benefit citizens of Temecula in terms of job creation and economic prosperity. (Economic Prosperity) Community Support
• Provided grant funding to non-profit organizations that provide services to the citizens of Temecula through the Community Service Funding and City Council Grant Programs. (Healthy & Livable City) i� ` n�
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Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget I 155

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from the City Council include:

City Council
• Provide an enhanced level of economic resource information, outreach, and assistance to citizens and businesses to support a vibrant local economic post -pandemic recovery within Temecula. This includes providing grants to assist residents and businesses. (Economic Prosperity) • Continue to make public safety a top priority by maintaining strategically staffed and structured Sheriff's Office and Fire Department, and equipping public safety personnel with modern technology, equipment, and apparatuses. (Safe & Prepared Community)
• Continue to prioritize public outreach. Engage with citizens and businesses via social media, e-blasts, Channel 3, the City of Temecula website, Citywide newsletters, Press Releases, the Guide to Leisure Activities, presentations to the community, and other means of communication. (Accountable & Responsive City Government) • Introduce, implement, and communicate the Mayor's initiative to preserve the quality of life for all residents by supporting public safety, investing in youth and recreation, and fostering a strong community where families can thrive for generations. Specifically focused on ensuring public safety remains a top priority, and promoting transparency and civic engagement through open communication and public education about City government. (Accountable & Responsive City Government)
• Provide resources and assistance to businesses and entrepreneurs within the City of Temecula that benefit citizens of Temecula in terms of job creation and economic prosperity. (Economic Prosperity) Community Support
• Through Community Service Funding and the City Council Grant Program, fund non-profit organizations that will assist and provide services to the citizens of Temecula. (Healthy & Livable City) Organizational Chart
� n �
n
Expenditures by Category Personnel Performance Measures 156 1 Annual Operating Budget

ORGANIZATIONAL CHART
Term:2018-2026
Mayor: 2023
Mayor Pro Tem:2022
TCSD President: 2025
TCSD President: 2024
TCSD President: 2021
TCSD Vice President: 2022
TCSD Vice President: 2020
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Term:2020-2028 Term:2022-2026 Terms: 2014-2022, 2024-2026 Mayor Pro Tern: 2025 Mayor: 2025 Mayor: 2022
TCSD Vice President: 2024 Mayor Pro Tern: 2024 Mayor:2018 TCSD Vice President:2023 Mayor Pro Tern: 2021
Mayor Pro Tem: 2017
Term:2016-2028
Mayor: 2024
Mayor: 2020
TCSD President:2023
TCSD President: 2022
rrcn v;.-- ❑..,mow--.-'025
021
Annual Operating Budget 1 157

City of Temecula
Fiscal Year 2025-26
l Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
CITY COUNCIL 100
SALARIES & BENEFITS Total 123,033 188,260 219,665 31,406 16.68% OPERATIONS & MAINTENANCE Total 136,148 217,667 188,206 (29,461)-13.53% INTERNAL SERVICE FUND ALLOCATIONS Total 325,042 327,254 334,577 7,323 2.24% Division Total 584,223 733,180 742,448 9,268 1.26%
COMMUNITY SUPPORT 101
OPERATIONS & MAINTENANCE Total 120,000 125,000 115,000 (10,000) -8.0% Division Total 120,000 125,000 115,000 (10,000) -8.0%

ANALYSIS/COMMENTS
City Council:

City Council expenditures are increasing by 1.26% due to the adoption of the Council Compensation Ordinance on October 25, 2023. This increase in Councilmembers' monthly compensation impacted only half of 2024-25, whereas 2025-26 reflects a full fiscal year at the increased rate. Internal Service Fund Allocations reflect an increase as a result of higher insurance premiums and technology costs, which is offset by a reduction in Other Outside Services and Postage & Packaging costs.

Community Support:

Community Support expenditures reflect a decrease of 8% due to the reduction of Community Grants to meet budget targets.
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158 1 Annual Operating Budget

PERSONNEL ALLOCATIONS

CITY COUNCIL
Council Members
Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

5.00 5.00

5.00 -

5.00 1 5.00

5.00 -
L�
Annual Operating Budget 1 159

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
160 1 Annual Operating Budget

CITY OF TEMECULA

CITY MANAGER'S OFFICE
Annual Operating Budget 1 161

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The City Manager Department serves as the City's executive office responsible to the City Council for implementing their priorities and objectives; to effectively deliver exceptional services, projects and programs to the citizens of Temecula; providing timely and accurate dissemination of City news and information to the community; and serves as the City's primary public liaison to all community stakeholders as well as intergovernmental relations with local, regional, State, Federal, tribal and international governments. The City Manager Department provides organizational leadership to City staff and operations, oversees the preparation and administration of a balanced annual budget, and implements all City Council policies, as guided by the Quality of Life Master Plan (QLMP).

SERVICES
General Administration Division
• Ensure the QLMP goals and citizen priorities adopted by the City Council are achieved through Citywide strategic planning, policy implementation and budget development. • Keep the City Council informed about City operations and important community issues that impact the City. • Implement City Council's long-term and short-term directives. • Provide prudent leadership and clear policy direction to City executives and staff Citywide concerning organizational decisions to efficiently provide the highest quality of public services.

Office of Public Information and Economic Development Division • Support existing businesses and encourages their continued prosperity and growth. • Manage an ongoing marketing/branding program to attract commercial and industrial development, entrepreneurs, and innovative startups.
• Administer the business incubator and resource center facility to foster new business formation and provide resources to new and existing businesses.
• Work to attract new industries that bring an enhanced tax base, quality jobs, and new capital into the community.
• Maintain strong relationships with educational, business and community leaders, and key partners (TVCC, VTV, EDC, SBDC, IEWBC, and IECE) to continue to maximize opportunities. • Facilitate smooth processing and problem solving for local businesses and businesses looking to expand in or relocate to Temecula.
• Manage and creates content for the City's social media channels (including radio and television). • Create, plan, and produce the annual State of the City (SOTC) event and related activities. • Assist other departments and other public agencies with marketing, social media, branding campaigns and press releases.
• Maintain strong focus on engaging the business community through site visits, meetings and ribbon cuttings. • Support small businesses by guiding them through the permit process to obtain their business license. • Produce informational videos regarding infrastructure updates and progress. ^�— n a
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Organizational Chart Expenditures by Category Personnel Performance Measures 162 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the City Manager's Office include:

General Administration Division
• Updated the City's General Plan. (Accountable & Responsive City Government) • Implemented fiscal policies and Council priorities, while maintaining a balanced budget. (Sustainable & Resilient City)
• Introduced, implemented and communicated the Mayor's initiatives as presented in the Mayor's State of the City, including E-Bike safety awareness and regulations, public safety, Public Works infrastructure and circulation, support for local businesses and entrepreneurs, community events and the new Sunset Market, and more. (Accountable & Responsive City Government)
• Provided excellent governmental transparency and public outreach to citizens and businesses via social media, e-blasts, Channel 3, the City website, presentations to the community, press releases, Citywide newsletters, and the Guide to Leisure Activities. (Healthy & Livable City) • Maintained public safety as a top priority with strategically staffed and structured Sheriff's Office and Fire Department. (Safe & Prepared Community)
Office of Public Information and Economic Development Division • Produced the 2025 Temecula Magazine. (Economic Prosperity) • Created, planned, and produced the annual State of the City (SOTC) event and related activities in 2025. (Economic Prosperity)
• Facilitated business growth and boosted City economics via creative social media campaigns. (Economic Prosperity)
• Expanded the number of tenants located within and programs offered at the TVE2. (Economic Prosperity) Organizational Chart
Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 163

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from the City Manager's Office include:

General Administration Division
• Continue to update the City's General Plan. (Accountable & Responsive City Government) • Implement fiscal policies and Council priorities, while maintaining a balanced budget. (Sustainable & Resilient City) • Introduce, implement and communicate the Mayor's initiatives as presented in the Mayor's State of the City, including public safety, public works infrastructure and circulation, support for local businesses and entrepreneurs, community events, and more. (Accountable & Responsive City Government) • Provide excellent governmental transparency and public outreach to citizens and businesses via social media, e-blasts, Channel 3, the City website, presentations to the community, press releases, Citywide newsletters, and the Guide to Leisure Activities. (Healthy & Livable City) • Maintain public safety as a top priority with strategically staffed and structured Sheriff's Office and Fire Department. (Safe & Prepared Community)
Office of Public Information and Economic Development Division • Produce the 2026 Temecula Magazine. (Economic Prosperity) • Create, plan and produce the annual State of the City (SOTC) address and related activities in 2026. (Economic Prosperity)
• Facilitate business growth and boost City economics via creative social media campaigns. (Economic Prosperity) • Grow the number of tenants located within and programs offered at the TVE2. (Economic Prosperity) Organizational Chart Expenditures by Category Personnel Performance Measures 164 1 Annual Operating Budget

Genera! Administration
Support to Mayor and
City Council
Intergovernmental
QLMP
Federal Legislation and
Advocacy
Community Funding
Special Projects
► Vk J
Aaron Adams
City Manager
c
Office of Public
Information and
Economic Development
Business Attraction &
Retention
Citywide Public
Information & Marketing
Business Ombudsman
Community Liaison
Temecula Valley
Entrepreneur's
Exchange
Social Media

City of Temecula
Fiscal Year 2025-26
l Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
CITY MANAGER 110
SALARIES & BENEFITS Total 1,378,739 1,999,435 2,057,408 57,973 2.9% OPERATIONS & MAINTENANCE Total 207,043 227,209 233,619 6,410 2.82% INTERNAL SERVICE FUND ALLOCATIONS Total 482,178 477,956 505,451 27,495 5.75% Division Total 2,067,960 2,704,600 2,796,478 91,878 3.4%

OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT- BUSINESS INCUBATOR RESOURCE SALARIES & BENEFITS Total 163,920 175,229 312,597 137,368 78.39% OPERATIONS & MAINTENANCE Total 21,208 19,869 15,046 (4,823)-24.27% INTERNAL SERVICE FUND ALLOCATIONS Total 44,502 117,993 167,446 49,453 41.91% Division Total 229,629 313,091 495,089 181,999 58.13%
OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT 111 SALARIES & BENEFITS Total 849,014 855,245 774,447 (80,798) -9.45% OPERATIONS & MAINTENANCE Total 460,049 512,045 433,601 (78,444)-15.32% INTERNAL SERVICE FUND ALLOCATIONS Total 237,622 254,562 224,692 (29,870)-11.73% Division Total 1,546,685 1,621,852 1,432,740 (189,112)-11.66%

ANALYSIS/COMMENTS
City Manager:

City Manager expenditures reflect a 3.4% increase due to a combination of higher Internal Service Fund Allocations and the calculated cost of living adjustments in accordance with the City's labor agreements.

Office of Public Information and Economic Development:

Office of Public Information and Economic Development divisions' expenditures reflect a net zero impact due to a combination of higher Internal Service Fund Allocations, reallocated staff, and reductions to the City's Promotional and Banner Programs to meet budget targets.

LJ
166 1 Annual Operating Budget

PERSONNEL ALLOCATIONS

CITY MANAGER
Assistant City Manager
Assistant to the City Manager
City Manager
Deputy City Manager
Executive Assistant
Senior Office Specialist
Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

1.00 1.00

1.00 -

0.65 0.50

0.50 -

1.00 1.00

1.00 -
-
-

1.00 1.00

1.00 -
-

1.00 1.00
-

3.65 1 4.50

5.50 1 1.00

OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT
Administrative Assistant 1.00

1.00 1.00
-
Assistant to the City Manager 0.35

0.50 0.50
-
Economic Development Manager 1.00

1.00 1.00
-
Management Analyst 2.00

1.00 -
(1.00)
Multimedia Coordinator -
-

1.00 1.00
Multimedia Specialist 1 1.00
-
-
-
Multimedia Specialist 11 -

1.00 -
(1.00)
Senior Management Analyst -

1.00 2.00

1.00 Senior Office Specialist 1.00
-
-
-

5.50 -
Total 6.35

5.50 Grand Total 10.00 1 10.00 1 11.00 1 1.00
*This increase reflects a reallocation of 1.00 FTE that was previously allocated to the Community Development Department.

L_J
Annual Operating Budget 1 167

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
168 1 Annual Operating Budget

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City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

MISSION
The City Clerk's office is committed to serving the needs of the residents of our community in a neutral and ethical manner by providing equal access to open and transparent government, ensuring the integrity of the participatory process, bridging internal and external communication pathways, and enhancing the public's trust in local government.

SERVICES
• Conduct regular and special general municipal elections in consolidation with the County of Riverside for the election of City Council members and local initiatives, referendums and recalls. • Administer campaign disclosure statements, conflict of interest filings, and related responsibilities for candidates, and elected and appointed officials pursuant to the Political Reform Act. • Administer public meetings, noticing, and related responsibilities for legislative body and advisory boards and commissions pursuant to the Ralph M. Brown Act.
• Administer Citywide records management program and ensure public access to records pursuant to the Public Records Act.
• Administer annual board and commission recruitment process for expiring terms and unscheduled vacancies pursuant to the Government Code.
• Administer diversity, equity and inclusion efforts adopted in City Council initiative and support Race, Equity, Diversity and Inclusion (REDI) Commission.
• Administer Citywide legislative platform working with lobbyists to monitor, track, and advocate for organizational priorities based upon community needs.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the City Clerk's Office include:
• Conducted 2024 General Municipal Election for local ballot measure regarding term limits and officeholders for Districts 1, 2 and 4. (Accountable & Responsive City Government) • Conducted 2024 recruitment and appointment process for multiple positions with expiring terms on the City's boards, committees, and commissions. (Accountable & Responsive City Government) • Implemented new process for presentation of proclamations at Race, Equity, Diversity and Inclusion (REDI) Commission and facilitated annual City Council direction for REDI Commission. (Equity) • Facilitated review and adoption of annual legislative platform, developed legislative priority materials, and conducted related legislative action days in Sacramento. (Accountable & Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 170 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from the City Clerk's Office include:
• Facilitate approval of the consolidation of the 2026 General Municipal Election for the City with the County of Riverside and prepare for the candidate nomination period for Districts 1, 3 and 5 to open in Summer 2025. (Accountable & Responsive City Government)
• Facilitate review and adoption of annual legislative platform, develop legislative priority materials, and conduct related legislative action days in Sacramento. (Accountable & Responsive City Government) • Facilitate comprehensive review of the City's existing board, committee, and commission structure to ensure alignment with the community's current needs and implement City Council direction regarding the same. (Accountable & Responsive City Government)
• Facilitate approval of the City's Title VI Program by the City Council, serve as Title VI Coordinator, and implement related requirements regarding access to Citywide programs and services for all segments of the community, including those with physical disabilities and limited English proficiency. (Equity) e
P
RW-
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 171

ORGANIZATIONAL CHART
L_J
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
172 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
CITY CLERK 120
SALARIES & BENEFITS Total
968,274
1,053,032
1,091,896
38,864

3.69%
OPERATIONS & MAINTENANCE Total
152,922
303,553
241,731
(61,822)
-20.37%
INTERNAL SERVICE FUND ALLOCATIONS Total
356,872
363,574
321,822
(41,752)
-11.48%
Division Total
1,478,068
1,720,159
1,655,449
(64,709)
-3.76%

ANALYSIS/COMMENTS
City Clerk:

City Clerk expenditures are projected to decrease by 3.76% due to expected lower Election Costs and Other Outside Services, and decreased Internal Service Fund Allocations as a result of the removal of unused equipment, offset by the calculated cost of living adjustment per the City's labor agreements.

PERSONNEL ALLOCATIONS

CITY CLERK
Deputy City Clerk
Director of Legislative Affairs/City Clerk
Management Assistant
Records Manager
Records Technician
Total
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

1.00 1.00

1.00 -

1.00 1.00

1.00 -

1.00 1.00

1.00 -

1.00 1.00

1.00 -

1.00 1.00

1.00 -

5.00 1 5.00

5.00 -
L_J
Annual Operating Budget 1 173

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
174 1 Annual Operating Budget

CITY OF TEMECULA

CITYATTOPNEY
Annual Operating Budget 1 175

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The mission of the City Attorney's Office is to provide quality, timely, and cost-effective legal analysis, opinion, and advice to the City's elected officials, departments, appointed commissions and boards on a broad range of legal, administrative, legislative, and procedural matters, including application of constitutional, statutory, administrative, and local government law. The City Attorney's Office strives to effectively provide timely research, analysis, evaluation, and drafting of legal and other documents necessary to the accomplishment of the City's municipal functions and goals. The City Attorney's mission includes representation of the City in judicial, administrative, and appellate proceedings in an efficient and cost-effective manner. The City contracts with Richards, Watson & Gershon to provide City Attorney and public law services.

SERVICES
• Serves as legal advisor to the City Council, City Manager, and the various City departments, Commissions, Committees, and Boards.
• Prepares and approves the majority of proposed City ordinances, resolutions, contracts, and other legal documents.
• Represents the City of Temecula in all litigation.

Organizational Chart
L
�f
A
Expenditures by Category
Personnel
*N/A for City Attorney
Performance Measures
*N/A for City Attorney
176 1 Annual Operating Budget

ORGANIZATIONAL CHART
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Annual Operating Budget 1 177

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25
2025-26
%
2023-24
Current
Proposed
Increase/ Increase/
Actuals
Budget
Budget
(Decrease) (Decrease)
GENERAL FUND 001
CITY ATTORNEY 130
OPERATIONS & MAINTENANCE Total 922,084
1,115,000
1,115,000
0 0.0%
Division Total 922,084
1,115,000
1,115,000
0 0.0%

ANALYSIS/COMMENTS
City Attorney:

City Attorney expenditures are unchanged compared to the prior year. 178 1 Annual Operating Budget

CITY OF TEMECULA

FINANCE
Annual Operating Budget 1 179

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
Primary responsibilities of the Finance Department include cash and investment management, financial reporting, coordination and preparation of the Annual Operating Budget and Capital Improvement Program, internal audit, payroll, accounts receivable, financial oversight, business licensing, purchasing and contracting, financial management of Sheriff and Fire contracts, and administration of all City funds and accounts.

SERVICES
• Oversee the Citywide coordination of the City's Annual Operating and Capital Improvement Program Budgets. • Manage and develop annual and five-year forecasts for City funds and programs, provide oversight of City's internal controls and manage audit requirements.
• Provide front-line customer service to the public and manage the issuance and renewal of business licenses for businesses operating within the City limits.
• In accordance with the City's Investment Policy, manage cash and investments focusing on safety and liquidity, then yield (or return on investment).
• Prepare Annual Comprehensive Financial Report, Single Audit Reports, State Reports and Quarterly Financial reports.
• Process Accounts Payable, Accounts Receivable, biweekly Payroll, and yearly W-2 and 1099 reporting. • Maintain and update general ledger accounts for budget preparation and financial reports. • Review all City contracts to ensure compliance with State law, Public Contract Code and the Temecula Municipal Code.
• Administer the City's purchasing process in accordance with the Temecula Municipal Code. • Administer the City's debt obligations, including Community Facility District bonds and Tax Allocation Bonds. • Coordinate the annual update of the rates and charges of the City's eligible Service Levels.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the Finance Department include:
• Continued the implementation of the new Citywide financial accounting system. (Accountable & Responsive City Government)
• Initiated the implementation of the City's new financial accounting system's payroll module. (Accountable & Responsive City Government)
• Received professional association awards for the City's Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Accountable & Responsive City Government) Organizational Chart Expenditures by Category Personnel Performance Measures 180 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Continued to identify operational efficiencies within the Finance Department to utilize technology and streamline systems. (Accountable & Responsive City Government) • Monitored the City's financial position as it relates to the Debt/Liability Paydown Strategy and provided recommendations to the City Council if additional payments were feasible to expedite the reduction in the unfunded pension liability. (Accountable & Responsive City Government)

GOALS AND OBJECTIVES
Current fiscal year goals from the Finance Department include:
• Continue the implementation of the City's new financial accounting system's payroll module. (Accountable & Responsive City Government)
• Receive professional association awards for the City's Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Accountable & Responsive City Government) • Continue to identify operational efficiencies within the Finance Department to utilize technology and streamline systems. (Accountable & Responsive City Government)
• Monitor the City's financial position as it relates to the Debt/Liability Paydown Strategy and provide recommendations to the City Council if additional payments are feasible to expedite the reduction in the unfunded pension liability. (Accountable & Responsive City Government) • Conduct a Request for Proposals to secure a new independent auditing firm. (Accountable & Responsive City Government)
• Conduct a Request for Proposals for an update to the Citywide Cost Allocaton Plan and User Fee Study. (Accountable & Responsive City Government)
• Update long-range financial and strategic plans for all major operating funds to ensure ongong fiscal solvency. (Accountable & Responsive City Government)
III
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Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 181

Procurement
Purchasing
Contracts
Y
Jennifer Hennessy
Director of Finance
General
Debt
Accounting
Administration
Accounts
Community
Payable
Facility District
Administration
Accounts
Receivable/ SARDA
Cashiering MAdministration
Payroll
Financial
Reporting
C/
Treasury M Budgeting
Investments _ Operating
Capital
Banking Improvement
Program
Long -Term
Reporting # Forecasting

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
FINANCE 140
SALARIES & BENEFITS Total
2,915,194
3,142,935
3,400,086
257,151

8.18%
OPERATIONS & MAINTENANCE Total
226,737
325,917
279,737
(46,180)
-14.17%
INTERNAL SERVICE FUND ALLOCATIONS Total
770,508
745,068
788,131
43,063

5.78%
CAPITAL OUTLAY Total
0 33,000
0 (33,000)
-100.0%
Division Total
3,912,440
4,246,920
4,467,954
221,034

5.2%

ANALYSIS/COMMENTS
Finance:

Finance department expenditures reflect an increase of 5.2% due to the transfer of one Authorized position to the Finance department from the Public Works Department, offset by a reduction in overall Operations & Maintenance costs to meet budget targets, and no Capital Outlay requests for FY25-26.

L_J
Annual Operating Budget 1 183

PERSONNEL ALLOCATIONS
riwinw14-r
Accountant I
Accounting Assistant
Accounting Assistant - Cashier
Accounting Technician 1/11
Assistant Director of Finance
Director of Finance
Finance Manager
Fiscal Services Manager
Management Analyst
Senior Accountant (Confidential)
Senior Accounting Technician
Senior Accounting Technician
(Confidential)
Total

COMMUNITY FACILITY DISTRICTS
Director of Finance
Finance Manager
Fiscal Services Manager
Total
Grand Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

1.00 1.00

2.00 1.00

1.00 1.00

1.00 -

2.00 2.00

2.00 -

1.00 1.00

1.00 -

1.00 1.00

1.00 -

1.00 0.96

0.96 -

0.88 1.00

1.00 -

1.85 1.86

1.86 -

1.00 2.00

2.00 -

1.00 1.00

1.00 -

1.00 1.00

1.00 -

2.00 1.00

1.00 -

14.73 1 14.82
1 15.82
1 1.00
-

0.04 0.04
-

0.12 -
-
-
-

0.14 0.14
-

0.12 0.18

0.18 -

14.85 15.00

16.00 1.00
*This increase reflects a reallocation of 1.00 FTE that was previously allocated to the Public Works Department.

LJ
184 1 Annual Operating Budget

CITY OF TEMECULA
:l1Ju1\O I U 2 Prol Is] Ws] afto1_\101W

RISK MANAGEMENT
Annual Operating Budget 1 185

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The Human Resources Department is dedicated to providing quality service to our internal and external customers, and specifically to the City of Temecula employees of the past, present, and future by attracting, developing, and retaining a highly qualified, diverse, positive, and productive workforce. The Human Resources staff is committed to fostering an environment of trust, objectivity, mutual respect, collaboration, innovation, open communication, safety, health, compassion, and well-being.

SERVICES
Human Resources Management
• Administration: Review, update, and develop policies and procedures to ensure compliance with public sector labor and employment laws and alignment with Citywide operations and objectives; prepare and monitor the department's budget and expenditures; manage and oversee federal and state government -mandated compliance programs including Department of Transportation (DOT) drug/alcohol testing, Department of Motor Vehicles (DMV) pull notice, Department of Justice (DOJ) LiveScan fingerprinting, and professional license/certificate verifications; maintain employee files and personnel records; and maintain the City's Personnel System as outlined in the City's Municipal Code. • Classification and Compensation: Conduct objective studies of classifications and labor markets to ensure City staff is appropriately classified and equitably compensated; and develop and revise classification specifications to accurately reflect required qualifications, job duties, and scope of responsibility. • Employee Benefits: Administer the City's comprehensive employee benefit program for eligible employees and retirees; update and maintain employee data in Human Resource Information System (HRIS)/payroll system; ensure compliance with the Affordable Care Act (ACA) and its mandates to offer and report offers of health coverage to eligible employees; manage employee leave and disability benefit programs ensuring regulatory compliance with federal and state laws; interpret and apply CaIPERS regulations; and administer COBRA benefits for separated employees.
• Recruitment, Selection and Retention: Coordinate with department managers to conduct recruitment and testing processes for vacant positions to ensure the hiring of highly qualified individuals; evaluate recruitment and turnover trends and develop strategies to effectively staff the organization; assist with organizational restructuring and succession planning efforts; conduct new employee orientation sessions; and develop and implement retention strategies.
• Organizational Development and Training: Coordinate and implement employee training programs to foster personal and professional development; and manage compliance training programs in accordance with legal requirements and best practices.
• Employee Relations: Administer performance evaluation process and advise management on performance management issues; counsel and advise employees on personnel matters; oversee disciplinary actions and Organizational Chart Expenditures by Category Personnel Performance Measures 186 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
appeals; manage and resolve employee grievances; conduct employee investigations to address and resolve personnel issues; and plan and implement employee recognition programs. • Labor Relations: Meet and confer with represented employee organizations regarding wages, hours and other terms and conditions of employment; interpret and apply provisions of the City's Personnel Rules and labor contracts; and maintain effective working relationships with employees and collective bargaining units.

Risk Management
• Insurance: Coordinate with the City's insurance broker to secure lines of insurance for the City's liability, workers' compensation, and property coverage in excess of the City's self -insured retention limits. Ensure all City agreements have proper insurance certificates related to the scope of work to transfer risk exposure. • General Liability: Coordinate with third -party administrators and legal counsel for the cost- effective resolution of general liability claims and lawsuits.
• Workers' Compensation: Coordinate with third -party administrators and legal counsel to manage workers' compensation claims and facilitate the proper treatment and resolution of employee injuries and illnesses, confer with managers to provide light duty or modified duty as appropriate, and assist employees with issues related to workplace injuries and illnesses.
• Employee Safety: Establish and maintain a safe and healthy work environment by maintaining open lines of communication throughout the organization and providing up-to-date safety trainings from industry experts.

Comply with established federal, state and local regulations, and implement practices that promote working safely to mitigate risk.
• Employee Training: Administer the City's mandated and elective training programs to comply with federal, state, and local requirements. To empower employees to discover and pursue a path to a fulfilling career through professional development.
• Claims Administration: Work in unison with Third Party Administrators to process both liability and workers' compensation claims against the City.
• Cost Recovery: Coordinate with various City departments and Third Party Administrator for the recovery of costs associated with damage to City -owned property.
• Wellness Program: Administer the City's Employee Wellness Program with educational and interactive programs. These programs are designed to encourage employees to achieve their individual health goals while enabling employees to live their personal and professional lives in the healthiest and most productive way possible.
• Risk Exposure: Administer the City's general liability program by investigating and evaluating risk exposure and providing strategies for decreasing the City's general liability. • Contract Compliance: Administer contract compliance for the City's agreements ensuring all agreements adhere to rules and regulations to minimize operational risk. Monitor vendor compliance, evaluate potential issues and put safety measures in place to protect the City's interests. n r
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 187

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Human Resources, Risk and Emergency Management include:

Human Resources Management
• Continued to update employment related policies and Administrative Guidelines. (Accountable & Responsive City Government)
• Facilitated and implemented NEOGOV eForms module which will create a modern electronic personnel file system. (Accountable & Responsive City Government)
Risk Management
• Continued to develop, implement, and update Citywide safety training programs (to prevent workplace injuries and illnesses) through June 2025. (Safe & Prepared Community) • Continued to implement the City's Employee Wellness Program and provide information, opportunities and events for all City employees through June 2025. (Accountable & Responsive City Government) • Continued with the Hepatitis A&B Vaccination program for all exposed current City staff and new hires based on job exposure through June 2025. (Safe & Prepared Community) • Maintained the City's Cost Recovery Program (for costs associated with damage to City -owned property) for all affected City departments through June 2025. (Accountable & Responsive City Government) • Updated the City's Safety Footwear Allowance language in the MOU and entered into an agreement with a safety footwear provider to ensure all exposed employees are provided with compliant safety footwear. (Safe & Prepared Community)
• Collaborated with Emergency Management, Human Resources, Riverside County Sheriff, and Fire on content to create and implement the Workplace Violence Prevention Plan in accordance with SB 553. (Safe & Prepared Community)

GOALS AND OBJECTIVES
Current fiscal year goals from Human Resources, Risk and Emergency Management include:

Human Resources Management
• Produce quarterly spotlights to educate employees on current benefit offerings, HR services, and other topics of interest. (Accountable & Responsive Government)
• Design and implement initiatives to enhance and maintain high job satisfaction among City employees. (Accountable & Responsive City Government)
• Facilitate the design, structure, content and workflows in the new HRIS system. (Accountable & Responsive City Government)
• Complete the personnel file scanning project to digitize paper records, enhancing efficiency, reducing paper waste and optimizing resource management. (Accountable & Responsive City Government) �
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Organizational Chart Expenditures by Category Personnel Performance Measures 188 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Continue enhancing NEOGOV modules to digitize HR forms, streamline processes, and create a centralized hub for electronic employee documents, improving efficiency and accessibility. (Accountable & Responsive City Government)
Risk Management
• Continue to develop, implement, and/or update Citywide safety training programs (to prevent workplace injuries and illnesses) through June 2026. (Safe & Prepared Community) • Continue to deliver the City's Employee Wellness Program, offering information, opportunities and events for all City employees through June 2026. (Accountable & Responsive City Government) • Maintain the Hepatitis A&B Vaccination program for all current City staff and new hires, ensuring coverage based on job -related exposure through June 2026. (Safe & Prepared Community) • Continue to maintain the City's Cost Recovery Program for damages to City -owned property, for all affected City departments through June 2026. (Accountable & Responsive City Government) • Continue administering the City's Safety Footwear Program, facilitating an annual on -site safety footwear event in partnership with Boot World, and ensuring all exposed employees receive compliant safety footwear through June 2026. (Safe & Prepared Community)
• Continue to monitor the Workplace Violence Prevention Program at City worksites, in accordance with the City's Workplace Violence Prevention Plan, through June 2026. (Safe & Prepared Community) a - _:_i.J
ILJ
41 n r�
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 189

Isaac Garibay
Director of Human Resources
and Risk Management
Human Resources Risk Management
Administration Insurance
Classification and
Genera[ Liability
Compensation
Employee Benefits Workers'
Compensation
Recruitment, Selection,
Employee Safety
and Retention
Organizational
Claims Administration
Development and
Training
Risk Exposure
Employee Relations
-
Employee Wellness
Program
Labor Relations
Cost Recovery
c

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
HUMAN RESOURCES 150
SALARIES & BENEFITS Total
971,479
1,027,931
1,136,731
108,800

10.58%
OPERATIONS & MAINTENANCE Total
586,069
937,564
912,028
(25,536)
-2.72%
INTERNAL SERVICE FUND ALLOCATIONS Total
268,437
262,136
339,881
77,745

29.66%
Division Total
1,825,985
2,227,631
2,388,640
161,008

7.23%

ANALYSIS/COMMENTS
Human Resources Management:

Human Resources expenditures are projected to increase by 7.23% due to a combination of higher Internal Service Fund Allocations, reclassed personnel, and the calculated cost of living adjustments in accordance with the City's labor agreements, offset by a reduction in consulting services and conferences to meet budget targets.

PERSONNEL ALLOCATIONS

HUMAN RESOURCES
Assistant Director of HR/Risk
Management
Director of HR/Risk Management
Human Resources Technician II
Human Resources Supervisor
Management Analyst
Management Assistant (Confidential)
Senior Management Analyst
Total
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr
-
-

1.00 1.00

0.50 0.50

0.50 -

2.00 2.00
-
(2.00)
-
-

1.00 1.00
-
-

1.00 1.00

0.40 0.90

1.10 0.20

2.20 2.10

0.10 (2.00)

5.10 5.50

4.70 (0.80)
*This decrease reflects a reallocation of 0.35 FTE to the Insurance Fund, and 0.45 to the Workers' Compensation Fund.

L_J
Annual Operating Budget 1 191

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
192 1 Annual Operating Budget

CITY OF TEMECULA

COMMUNITY DEVELOPMENT
.!A*
Annual Operating Budget 1 193

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
Community Development is a multi -disciplinary department providing planning, development services, Community Development Block Grant (CDBG), and affordable housing to citizens, elected officials, appointed boards, commissions, and City departments. The department guarantees all development is consistent with the General Plan, Municipal Codes, and Building Codes. Community Development ensures that the goals of the community are met, with regards to health, life safety, public welfare, and neighborhood preservation. The department also conducts activities related to the winding down of redevelopment through the Successor Agency to the Temecula Redevelopment Agency.

SERVICES
Long Range Planning
• Provide planning related analysis and recommendations to community, City staff, City Commissions and City Council for issues related to current and future development. • Provide environmental review services for future development projects. • Provide oversight, analysis, and implementation of the goals of the City's General Plan to ensure consistency with the objectives of the City Council, the community, and economic trends as the community matures. • Conduct legislative analysis and implementation to maintain compliance with all applicable State and Federal laws.
• Engage in all planning processes regarding future development of the City and region. • Conduct public outreach efforts.

Current Planning and Permit Center
• Provide development and environmental review services for development projects. • Provide planning -related analysis and recommendations to Planning Commission and City Council for issues related to development applications.
• Process building permits, including initial application, plan check, issuance, and records retention. • Guide and educate customers on building permit requirements, and the residential development code to ensure code compliance and a seamless permitting process for the applicants.

Building & Safety
• Promote life, health, and fire safety standards adopted through California Building Codes • Provide plan examinations and building inspections to applicants seeking to improve their property. • Facilitate timely and efficient plan check and permitting services for businesses, residents, and developers, allowing customers to handle development services in one convenient location.

Organizational Chart Expenditures by Category Personnel Performance Measures 194 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Code Enforcement
• Provide commercial and residential neighborhood preservation to ensure a high -quality standard of living and sustainability in communities.
• Identify substandard housing to promote life, health, and safety standards.

SARDA/Housing
• Administer the affordable housing compliance program to ensure compliance at all affordable housing developments monitored by the City.
• Identify, negotiate, and enter into funding agreements for the construction of affordable housing units. • Administer the Successor Agency to the Temecula Redevelopment Agency to wind down the obligations of the former Temecula Redevelopment Agency.

Community Development Block Grant
• Administer the Community Development Block Grant (CDBG) program, which provides funding for community - based services and capital infrastructure projects.
• Complete compliance and documentation requirements for U.S. Department of Housing and Urban Development (HUD).
• Implement the goals of the Federal Community Development Block Grant program. Develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low and moderate -income persons.

Administration
• Review all department contracts to ensure compliance with Public Contract Code and City Municipal Code and internal financial policies.
• Manage department purchasing, contract administration, and procurement. • Provide support to Planning Commission and Old Town Local Review Board by managing and noticing agendas and reports.
• Prepare department's Annual Operating Budget, Capital Improvement Program, and Five -Year Forecast. • Provide external agencies with quarterly, monthly, and annual development and fee reports. • Liaison to Human Resources for personnel responsibilities such as recruitment and evaluations.

Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 195

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Community Development include:

Long Range Planning
• Initiated the fourth phase of the General Plan Update. (Accountable & Responsive City Government) Current Planning and Permit Center
• Online public inquiries for Planning averaged a response time of less than one day (excluding weekends and holidays). (Economic Prosperity)
Building & Safety
• Maintained 75% of building permit transactions were conducted online. (Economic Prosperity) Code Enforcement
• Maintained an average Code Case open date rate of less than 60 days. (Accountable & Responsive City Government) SARDA/Housing
• Completed a request for proposal (RFP) for one affordable housing site. (Healthy & Livable City) Community Development Block Grant
• Updated the CDBG internal process to better utilize technology and database tracking. (Accountable & Responsive City Government)
Administration
• Support the implementation of the Old Town Local Advisory Committee. (Economic Prosperity) Organizational Chart Expenditures by Category Personnel Performance Measures 196 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from Community Development include:

Long Range Planning
• Continue to make progress on the fourth phase of the General Plan Update. (Accountable & Responsive City Government)
Current Planning and Permit Center
• Online public inquiries for Planning will average a response time of less than one day (excluding weekends and holidays). (Economic Prosperity)
Building & Safety
• Maintain 75% of building permit transactions to be conducted online. (Economic Prosperity) Code Enforcement
• Maintain an average Code Case open date rate of less than 60 days. (Accountable & Responsive City Government) SARDA/Housing
• Solicit and award a request for proposal (RFP) for one affordable housing site. (Healthy & Livable City) Community Development Block Grant
• Continue to maintain CDBG timeliness requirements for the disbursement of funds. (Accountable & Responsive City Government)
Administration
• Continue to support the implementation of the Old Town Local Advisory Committee. (Economic Prosperity) A (D
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 197

W
Matt Peters
Director of Community Development
Long Range Planning Current
Building and Safety Code Enforcement
Planning/Permit Center
General Plan Current
Permit
Inspection
Nuisance
Planning
Center
Services
Abatement
Zoning Ordinance ❑evelo ment
Development
Plan
Plan Review
Weed Abatement
Review
Processing
Processing
CEQA Public
Management
Permit
Sign Abatement
Information
Issuance
Public Information
Abandoned
Community CEQA
Engagement
Public
Vehicle
Abatement
Management
Information
Energy
Animal Control
Conservation
Programs
SARDA]Housing
Community Development
Administration
Block Grant

ROPSJLRPMP
Consolidated Plan
Operating Budget
Implementation
Affordable
CIP Budget
Housing
HUD Grant
Compliance
Administration
and Compliance
Procurement and
Contract
Real Estate
Administration
Acquisition and
-
Surecipient
�ontract
Disposition
Administration
Public Information
Capital Projects
Administration
Personnel
Cammunit y
Grant Writing
Administration
Engagement
C/

EXPENDITURES BY CATEGORY
GENERAL FUND 001
PLANNING 161
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
Division Total

BUILDING & SAFETY - CODE ENFORCEMENT
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
CAPITAL OUTLAY Total
Division Total
BUILDING & SAFETY 162
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
Division Total
ANIMAL CONTROL 172
OPERATIONS & MAINTENANCE Total
Division Total

ANALYSIS/COMMENTS
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
1,953,295
2,103,522
2,406,095
302,573

14.38%
265,370
775,829
804,409
28,580

3.68%
899,986
825,586
821,535
(4,051)
-0.49%
3,118,651
3,704,936
4,032,039
327,102

8.83%
812,066
865,358
1,016,946
151,587

17.52%
184,734
321,434
276,360
(45,074)
-14.02%
357,082
294,884
374,833
79,949

27.11%
11,840
10,319
0 (10,319)
-100.0%
1,365,723
1,491,996
1,668,139
176,143

11.81%
2,383,591
2,681,063
2,674,029
(7,034)
-0.26%
297,359
365,043
332,246
(32,797)
-8.98%
671,575
609,846
650,755
40,909

6.71%
3,352,525
3,655,953
3,657,030
1,078

0.03%
444,156
441,582
777,820
336,238

76.14%
444,156
441,582
777,820
336,238

76.14%
Planning:

Planning expenditures are projected to increase by 8.83% due to reclassed positions, increased costs related to the Old Town Parking Sensors Project, and the calculated cost of living adjustments in accordance with the City's labor agreements.

Code Enforcement:

Code Enforcement division expenditures are projected to increase by 11.81% primarily due to Authorized staff added at Mid -Year, the calculated cost of living adjustments in accordance with the City's labor agreements, and higher Internal Service Fund Allocations as a result of higher insurance premiums and technology costs, offset by a reduction in consulting services to meet budget targets and no Capital Outlay requests for 2025-26.

Building & Safety:

Building & Safety division Operations & Maintenance expenditures decreased to meet budget targets, offset by higher Internal Service Fund Allocations.

Animal Control:

Animal Control expenditures increased by 76.14% as a result of negotiated contract costs.

Annual Operating Budget 1 199

AFFORDABLE HOUSING FUND 165
rvurv-U[rAK I MUNI I AL 177
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
TRANSFERS Total
Division Total
COMMUNITY DEV BLOCK GRANT FUND 140
NON -DEPARTMENTAL 199
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
365,308
213,449
248,132
34,683

16.25%
99,354
259,325
288,423
29,098

11.22%
68,102
50,054
54,273
4,219

8.43%
0 5,091,359
0 (5,091,359)
-100.0%
532,763
5,614,187
590,828
(5,023,359)
-89.48%
SALARIES & BENEFITS Total
42,281
44,562
45,804
1,243

2.79%
OPERATIONS & MAINTENANCE Total
183,182
189,756
246,140
56,385

29.71%
TRANSFERS Total
2,377,403
11,843
325,000
313,157
2,644.24%
Division Total
2,602,866
246,160
616,944
370,784
150.63%
SARDA DEBT SERVICE FUND 380
NON -DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total
TRANSFERS Total
Division Total

ANALYSIS/COMMENTS
4,437,557 5,910,644 7,090,641 1,179,997 19.96%
732,503 750,000 0 (750,000)-100.0%
5,170,059 6,660,644 7,090,641 429,997 6.46%
Affordable Housing:

Affordable Housing expenditures include a decrease of 89.48% due to the removal of the Transfers Out to support Capital Projects, offset by the calculated cost of living adjustments in accordance with the City's labor agreements, reclassed positions and an increase in anticipated consulting serviced.

Community Development Block Grant:

CDBG expenditures reflect an increase of 150.63% due to increased costs for outside services and fluctuations in the Transfers Out to support Capital Projects.

SARDA:

SARDA expenditures reflect an increase in the Operations & Maintenance due to the budget added to account for depreciation costs within the SARDA Fund, offset by the reduction in Transfer Out to support Capital Projects.

LJ
200 1 Annual Operating Budget

PERSONNEL ALLOCATIONS

COMMUNITY DEVELOPMENT - PLANNING
Asst. Director of Community Development
Assistant Planner
Associate Planner I
Associate Planner 11
Community Development Technician I
Deputy City Manager
Director of Community Development
Planning Manager
Planning Technician
Principal Management Analyst
Principal Planner
Senior Administrative Assistant
Senior Community Development Technician
Senior Management Analyst
Senior Office Specialist
Senior Planner
Total

COMMUNITY DEVELOPMENT - BUILDING & SAFETY
Administrative Assistant
Asst. Director of Community Development
Building Inspector I
Building Inspector II
Building Official
Code Enforcement Manager
Code Enforcement Officer I
Code Enforcement Officer II
Community Development Technician I
Community Development Technician II
Deputy City Manager
Director of Community Development
Field Supervisor Code Enforcement
Plan Checker
Planning Technician
Principal Management Analyst
Senior Administrative Assistant
Senior Building Inspector
Senior Code Enforcement Officer
Senior Community Development Technician
Senior Management Analyst
Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

0.50 0.65

0.65 -

2.00 1.00

1.00 -
-

1.00 1.00
-

1.00 1.00

1.00 -

1.10 0.30

0.30 -

0.50 0.55
-
(0.55)
-
-

0.65 0.65

1.00 1.00

1.00 -

1.10 2.00

1.00 (1.00)

0.30 0.35

0.55 0.20
-
-

1.00 1.00

0.75 0.83

0.83 -

0.20 0.20

0.20 -

0.35 0.30

0.10 (0.20)

1.00 1.00

1.00 -

1.00 1.00

1.00 -

10.80 1 11.18
1 11.28
1 0.10

2.00 2.00
-
(2.00)

0.25 0.25

0.25 -

1.00 1.00

1.00 -

3.00 2.00

2.00 -

1.00 1.00

1.00 -
-
-

1.00 1.00

2.00 1.00

1.00 -

1.00 2.00

2.00 -

0.90 2.70

2.70 -

1.00 -
-
-

0.25 0.25
-
(0.25)
-
-

0.25 0.25

0.95 0.95

0.95 -

1.00 1.00

1.00 -

0.90 -
-
-

0.40 0.45

0.45 -

0.10 0.15

2.15 2.00

1.00 2.00

2.00 -

1.00 1.00
-
(1.00)

1.80 1.80

1.80 -

0.90 0.90

0.90 -

20.45 20.45

20.45 -
L_J
Annual Operating Budget 1 201

CDBG
Principal Management Analyst
Total

AFFORDABLE HOUSING
Asst. Director of Community Development
Deputy City Manager
Director of Community Development
Principal Management Analyst
Principal Planner
Senior Administrative Assistant
Senior Management Analyst
Total
Grand Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

0.20 0.20

0.20 -

0.20 0.20

0.20 -

0.25 0.10

0.10 -

0.25 0.20
-
(0.20)
-
-

0.10 0.10

0.10 -

0.80 0.80

0.15 0.02

0.02 -

0.75 0.80
-
(0.80)

1.50 1.12

1.02 (0.101
*One Principal Planner position is unfunded for FY2025-26.

32.95 1 32.95 1 32.95 1 (0.00)
202 1 Annual Operating Budget

AIL

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The mission of the Public Works Department is to provide quality services that support the infrastructure demands of the City of Temecula and enhance the safety, welfare and aesthetic environment of the residents, businesses and visitors. This is accomplished through the development and maintenance of City streets, sidewalks, traffic systems, bike lanes, parks, buildings, trails and drainage facilities; professional engineering oversight of public and private improvement projects; and implementation of erosion/sediment controls and storm water quality measures.

SERVICES
Land Development
• Provide plan check and engineering review and approval of parcel maps, subdivision maps and improvement plans as required by the Subdivision Map Act. Review planning applications to enforce the implementation of proper mitigation measures, conditions and code requirements. • Provide inspection oversight services for private development construction activity for all streets, drainage facilities, parks and slopes to be included within City right-of-way and maintenance areas. • Review and issue permits for encroachments into the public right-of-way including private and public capital improvement construction activities, utility installation, repair work, special events, haul routes, etc. • Review of legal descriptions for property transactions and/or right-of-way acquisition, abandonment and easement requests.
• Provide Water Quality Management Plan (WQMP) reviews, inspections and oversight for the development communityto ensure proper measures are considered duringthe development (planning/construction) process to meet NPDES regulations and requirements.

Traffic Engineering
• Maintain the Intelligent Transportation System (ITS) Network to provide for the efficient progression of traffic on the City's primary corridors.
• Conduct an effective preventative maintenance program for traffic signal and communication equipment to minimize signal equipment failures.
• Review proposed development plans to ensure consistency with the City's General Plan, Circulation Element and QLMP goals.
• Review and respond to citizen requests for traffic control devices and traffic calming measures, with input from the Traffic Safety Commission.
• Ensure neighborhood and school areas traffic safety by providing education through the Neighborhood Traffic Calming Program.
• Monitor traffic conditions and develop proactive measures to provide for the safe and efficient movement of traffic on City arterials.

L 4611A
n
Organizational Chart Expenditures by Category Personnel Performance Measures 204 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Design, implement, and maintain fiber optic communications to traffic signals and facilities Capital Improvement Program
• Project management and administration of all activities related to the City's Capital Improvement Program (CIP) involving design and construction contracts for roadways, bridges, flood control and drainage improvements, parks, buildings, and other improvements.
• Administration of assessment and special district design and construction projects. • Coordination with federal, state, regional and local agencies related to design and construction of CIP projects. • Application for and administration of funding and grants from federal, state, regional, and local sources for CIP projects.
• Monitor regional, state, and federal transportation initiatives to ensure City transportation interests are met. • Administration of right-of-way acquisitions, including negotiations, appraisal reviews, title and escrow services, and management of right-of-way consulting services.

Street Maintenance
• Provide well -maintained right-of-way areas for the safety and mobility of motorists, bicyclists and pedestrians, including traffic signing and striping as directed by the Traffic Engineering Division. • Maintain City -owned storm drains, catch basins, and surface drainage facilities, and monitor illegal dump areas in support of the City's NPDES program.
• Proactively mitigate graffiti vandalism from the right-of-way and expedite transmission of relevant graffiti information to police investigators.
• Respond to emergency situations and natural disasters, provide special event support and perform weed abatement and litter control.
• Administer the Trees for Temecula Program to replace missing or damaged street trees within residential neighborhoods.

Facility Maintenance
• Administer the maintenance, repairs, and cleaning of all City -owned or leased buildings and aquatics facilities through in-house personnel and administration of outside contract services. • Manage scheduled inspections and license/permit requirements associated with the operation of facility fire prevention and elevator systems, kitchen equipment, emergency generators, and pool facility water quality/chemistry systems.
• Respond to routine and emergency work order requests. • Provide Council Chamber and meeting set-ups at various City facilities. • Provide special event support and day porter services to ensure a safe and clean environment for all users. �� of
A n r.
(D
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 205

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Parks Maintenance
• Administer the ongoing maintenance, repair and cleaning of all City parks, trails, open space areas, landscaped medians and applicable slope areas.
• Administer and oversee landscape water use for all City parks, landscaped medians, applicable slope areas, and recreation/administrative facility properties.
• Manage the urban forest within City parks, open space areas, landscaped medians, applicable slope areas, and recreation/administrative facility properties.
• Respond to routine and emergency work order requests, and provide support services for Citywide programs and special events.

Stormwater
• Ensure National Pollutant Discharge Elimination System (NPDES), Federal Emergency Management Agency (FEMA) and code compliance with applicable engineering and City standards. • Provide NPDES engineering reviews, inspections and oversight for the development community to ensure proper measures are considered during the development (planning/construction) process to meet state and federal NPDES regulations and requirements.
• Provide community outreach and education related to pollution prevention and water quality management; specifically, to address and meet NPDES compliance standards. • Provide for the administration and management of the NPDES permit for construction activities and the Municipal Separate Storm Sewer System (MS4) permit to ensure compliance with local, state and federal mandates.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Public Works include:

Traffic Engineering
• Installed fiber optic communication system along Pechanga Parkway. (Transportation Mobility & Connectivity) • Upgraded traffic signal controllers at various signalized intersections. (Transportation Mobility & Connectivity) Capital Improvement Program
• Completed construction of the Pickleball Courts. (Healthy & Livable City) • Completed Citywide Pavement Rehabilitation Program — Butterfield Stage Road (Temecula Parkway to City limits), Pechanga Parkway (Temecula Parkway to Via Eduardo), and Rainbow Canyon Road (Pechanga Parkway to City limits). (Transportation Mobility & Connectivity) • Completed construction of 1-15 Congestion Relief. (Transportation Mobility & Connectivity)

4. n�
it n�
n
Organizational Chart Expenditures by Category Personnel Performance Measures 206 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Completed construction of French Valley Parkway/Interstate 15 Improvements, Phase II. (Transportation Mobility & Connectivity)
• Completed construction of Santa Gertrudis Creek Trail, Phase II, Margarita Under -Crossing. (Transportation Mobility & Connectivity)
Street Maintenance
• Continued to maintain various drainage channels, streets and road networks, and the City's right-of-way infrastructure. (Sustainable & Resilient City)
Facility Maintenance
• Pavement rehabilitation of Library parking lots. (Sustainable & Resilient City) • Installed security gate to Civic Center rear access drive. (Sustainable & Resilient City) Parks Maintenance
• Completed renovation and replacement of playground equipment and safety surfacing at Ronald Reagan Sports Park. (Healthy & Livable City)
• Pavement rehabilitation of public parking lots at various City parks. (Sustainable & Resilient City)

GOALS AND OBJECTIVES
Current fiscal year goals from Public Works include:

Land Development
• Develop a policy and procedures manual to outline common workflows for the Land Development Division. (Accountable & Responsive City Government)
Traffic Engineering
• Implement signal timing coordination on Pechanga Parkway. (Transportation Mobility & Connectivity) • Install fiber optic communication system along Ynez Road and implement signal timing coordination. (Transportation Mobility & Connectivity)
• Replace all safety lighting at signalized intersections with LED lighting. (Safe & Prepared Community) Capital Improvement Program
• Complete Citywide Pavement Rehabilitation Program — Rancho Way (Business Park Dr to Diaz Rd), Santiago Rd. (E of 1-15 bridge to Ynez Rd.), and Felix Valdez Ave. (Vincent Moraga Dr. to Sixth St.) in Fall 2025. (Transportation Mobility & Connectivity)
ri
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 207

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Complete construction of Ronald Reagan Sports Park Hockey Rink Renovation by January 2026. (Transportation Mobility & Connectivity)
• Complete construction of Fire Station 84 renovation in Summer 2026. (Accountable & Responsive City Government) • Complete Ronald Reagan Sports Park Skate Park renovation in Spring 2026. (Transportation Mobility& Connectivity) • Complete construction of 1-15/SR-79 Enhanced Landscaping in Fall 2025. (Transportation Mobility & Connectivity) Street Maintenance
• Continue to maintain and improve the City's roadway network. (Sustainable & Resilient City) • Provide effective graffiti abatement. (Sustainable & Resilient City) • Provide well -maintained right-of-way areas. (Sustainable & Resilient City) Facility Maintenance
• Continue to retrofit various City facilities with LED lighting fixtures. (Sustainable & Resilient City) • Paint City facility exteriors (FOC, West Wing and TVE2). (Sustainable & Resilient City) • Fabricate and install trash enclosure covers for all City facilities. (Sustainable & Resilient City) • Upgrade appliances within the Community Recreation Center. (Sustainable & Resilient City) • Complete parking lot repairs at the Community Recreation Center. (Sustainable & Resilient City) Parks Maintenance
• Replacement of playground equipment at Paseo Gallante Park. (Healthy & Livable City) • Convert and install LED lighting at Patricia H. Birdsall Sports Park for soccer fields one through four. (Sustainable & Resilient City)
• Parking lot pavement rehabilitation at Patricia H. Birdsall Sports Park. (Sustainable & Resilient City) • Install sidewalk improvements at various City parks. (Sustainable & Resilient City) • Plant 300 trees throughout the City's right-of-way, parks, medians and facilities. (Healthy & Livable City) Stormwater
• Develop a policy and procedures manual to outline common workflows for the Stormwater Division. (Accountable & Responsive City Government)
i� n
fI n�n
Organizational Chart Expenditures by Category Personnel Performance Measures 208 1 Annual Operating Budget

Ron Moreno
Director of Public
Works/City Engineer
Engineering
Land
Traffic
capital
Projects
Stormwater
Development
Engineering
Administration
Permits and
Traffic/Safety
Project
Development,
PIDES
Compliance
Development
Commission
Management
and
Inspection
and
Inspection
Inspection
Speed
FEMA Project
Surveys
Permit
and Floodplan
Grant
Compliance
Compliance
Administration
Application
Traffic Signal
Maintenance
Administration
Bond
and Timing
Alterrative
Administration
Plans and
Compliance
and Map
Specifications
Management
Recordation
Traffic
Analysis and
j�
Census
Requests for
BMP and IGP
Development
Proposals and
Inspections
Plans Check
Public Service
Public Bidding
and Review
Requests
Conditions
Assessment
Public
Informatlor
PlanninAnalysis(
Traffic impact
and CFD
Districts
Commission
Review
Measure A
Traffic
and TUMF
Control Plans
Administration
c
Maintenance
Street
Facility
Park and
Landscape
Maintenance
Maintenance
Maintenance
Asphalt/
Building
Park/Trail
Concrete
Maintenance
Maintenance
Maintenance
and Rehab
Median and
Signing/
Old Town
Slope
Striping
Facilities
Maintenance
Tr
Trimming and
Custodial
Services
Facility
Landscape
Weed
Maintenance
Abatement
Public
Drainage
Service
Plan Check
Channels/
Requests
Review
Catch Basins
Special
Events and
CIP Projects
Public Service
Requests and
Emergency
Graffiti
Service
Response
Removal
Special
Events and
Emergency
Special
Service
Events and
Response
Emergency
Service
Response

City of Temecula
Fiscal Year 2025-26
l Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
LAND DEVELOPMENT 163
SALARIES & BENEFITS Total 1,569,654 1,851,179 1,670,742 (180,437) -9.75% OPERATIONS & MAINTENANCE Total 70,556 173,020 51,800 (121,220)-70.06% INTERNAL SERVICE FUND ALLOCATIONS Total 512,330 565,874 611,260 45,386 8.02% CAPITAL OUTLAY Total 10,102 0 0 0 0.0%
Division Total 2,162,642 2,590,073 2,333,802 (256,271) -9.89%

PUBLIC WORKS - NPDES COMPLIANCE
SALARIES & BENEFITS Total 269,067 345,730 409,523 63,792 18.45% OPERATIONS & MAINTENANCE Total 795,290 751,326 964,050 212,724 28.31% Division Total 1,064,358 1,097,056 1,373,573 276,517 25.21%

PUBLIC WORKS - OLD TOWN MAINTENANCF
SALARIES & BENEFITS Total 130,540 162,394 146,833 (15,561) -9.58% OPERATIONS & MAINTENANCE Total 197,488 219,564 195,382 (24,182)-11.01% Division Total 328,028 381,958 342,214 (39,744)-10.41%

PUBLIC WORKS - STREETS MAINTENANCE
SALARIES & BENEFITS Total 1,752,880 1,916,200 1,916,627 426 0.02% OPERATIONS & MAINTENANCE Total 1,432,824 1,487,700 1,380,700 (107,000) -7.19% INTERNAL SERVICE FUND ALLOCATIONS Total 2,040,682 2,066,233 2,067,722 1,489 0.07% CAPITAL OUTLAY Total 14,282 0 0 0 0.0%
Division Total 5,240,668 5,470,133 5,365,049 (105,085) -1.92%

PUBLIC WORKS - TRAFFIC ENGINEERING
SALARIES & BENEFITS Total 566,667 606,358 604,019 (2,339) -0.39% OPERATIONS & MAINTENANCE Total 74,936 204,807 161,780 (43,027)-21.01% Division Total 641,603 811,165 765,799 (45,366) -5.59%

PUBLIC WORKS - TRAFFIC MAINTENANCE
SALARIES & BENEFITS Total 432,159 443,825 396,255 (47,570)-10.72% OPERATIONS & MAINTENANCE Total 138,959 203,200 186,300 (16,900) -8.32% Division Total 571,118 647,025 582,555 (64,470) -9.96%
CIP PUBLIC WORKS 165
SALARIES & BENEFITS Total 2,859,093 2,881,144 3,104,622 223,478 7.76% OPERATIONS & MAINTENANCE Total 30,030 65,700 47,500 (18,200) -27.7% INTERNAL SERVICE FUND ALLOCATIONS Total 562,290 553,456 616,213 62,757 11.34% CAPITAL OUTLAY Total 5,234 33,395 0 (33,395)-100.0%
Division Total 3,456,647 3,533,695 3,768,335 234,640 6.64% �J
210 1 Annual Operating Budget

GENERAL FUND 001
PARKS NuAiry i rrvHrvCE 167
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
CAPITAL OUTLAY Total
Division Total
DEVELOPMENT IMPACT FEES FUND 120
NON -DEPARTMENTAL 199
TRANSFERS Total
Division Total
MEASURE A FUND 170
NON -DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total
TRANSFERS Total
Division Total

0.54%
313,066
443,104
681,628
238,524

53.83%
84,439
96,451
0 (96,451)
-100.0%
5,764,177
6,365,642
6,467,042
101,400

1.59%
495,860
14,280,576
4,226,610
(10,053,966)
-70.4%
495,860
14,280,576
4,226,610
(10,053,966)
-70.4%
2,885,916
1,783,743
3,155,000
1,371,257

76.88%
923,190
8,390,869
2,872,160
(5,518,709)
-65.77%
3,809,106
10,174,612
6,027,160
(4,147,452)
-40.76%
Land Development:

Land Development expenditures are decreasing by 9.89% due to reallocated staff, the transfer of an Authorized position to Finance, and a reduction in consulting services to meet budget targets.

Public Works:

Public Works division expenditures have no net impact compared to the prior year. Various reductions to Salaries & Benefits reflect underfilled and reallocated positions, while decreases in Operations & Maintenance were made to meet budget targets.

CIP:

CIP division expenditures are increasing by 6.64% due to higher Internal Service Fund Allocations as a result of higher insurance premiums and technology costs, reclassed positions, and the calculated cost of living adjustments in accordance with the City's labor agreements. These are offset by a reduction in consulting services and no Capital Outlay costs for 2025-26.

Parks Maintenance:

Parks Maintenance expenditures are projected to increase by 1.59% primarily due to higher Internal Service Fund Allocations as a result of higher insurance premiums and technology costs.

Measure A and Development Impact Fee Funds:

Expenditures in these funds fluctuate each year based on the variability in the Capital Improvement Program and the projects supported by these funding sources.

L_J
Annual Operating Budget 1 211

PERSONNEL ALLOCATIONS
7i1�3�L��A7� _ ► � 7�1�1��I7►�i�i;�l
Administrative Assistant
Assistant Engineer II
Asst. Director of Public Works
Associate Civil Engineer
Associate Engineer I
Associate Engineer 11
Director of Public Works
Engineering Tech I
Management Analyst
Management Assistant
Principal Management Analyst
Public Works Inspector II
Senior Administrative Assistant
Senior Management Analyst
Senior Office Specialist
Senior Public Works Inspector
Total

PUBLIC WORKS
Administrative Assistant
Asst. Director of Public Works
Associate Civil Engineer
Associate Engineer II
Custodian II
Director of Public Works
Field Supervisor - Trades
Landscape Inspector II
Lead Maintenance Worker
Lead Maintenance Worker -Electrician
Lead Maintenance Worker-HVAC
Maintenance Manager
Maintenance Superintendent
Maintenance Superintendent -Streets
Maintenance Worker I
Maintenance Worker II
Management Analyst
Management Assistant
Office Specialist II
Principal Civil Engineer
Principal Management Analyst
Program Manager
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

0.20 -
-
-

1.00 1.00
-
(1.00)

0.25 1.00
-
(1.00)
-

1.00 1.00
-

1.00 -

1.00 1.00

2.00 1.00

0.15 0.15

0.15 -

1.00 1.00

1.00 -
-

1.00 1.00
-

0.60 -
-
-

0.10 0.10
-
(0.10)

0.90 0.90

0.90 -
-

0.20 0.20
-

1.00 -
-
-
-

1.00 0.60
(0.40)

0.75 0.75

0.75 -

7.95 1 9.10
1 8.60
1 (0.50)

0.20 - -
-

0.30 - -
-

1.00 1.00 1.00
-

1.00 - -
-

0.10 0.20 0.20
-

0.40 0.40 0.40
-

0.15 0.15 -
(0.15)

0.20 0.20 0.20
-

3.00 3.00 -
(3.00)

0.10 0.10 0.10
-

0.05 0.05 0.05
-

0.85 0.85 0.85
-

0.05 0.10 0.10
-

1.00 1.00 1.00
-

4.00 7.00 7.00
-

2.00 - 3.00

3.00 -
- 0.35

0.35 0.75

0.35 -
(0.35)
-
- 1.00

1.00 -
- 1.00

1.00 0.35

0.35 -
(0.35)
-

1.00 1.00
-
0 212 1 Annual Operating Budget

Public Works Inspector II
Senior Administrative Assistant
Senior Civil Engineer
Senior Landscape Inspector
Senior Office Specialist
Senior Public Works Inspector
Senior Signal Technician
Signal Technician I
Total

PUBLIC WORKS - CIP ADMINISTRATION
Administrative Assistant
Assistant Engineer I
Assistant Engineer II
Asst. Director of Public Works
Associate Civil Engineer
Associate Engineer I
Associate Engineer II
Director of Public Works
Engineering Manager
Engineering Technician II
Principal Civil Engineer
Principal Management Analyst
Senior Administrative Assistant
Senior Civil Engineer
Senior Public Works Inspector
Supervising Public Works Inspector
Total

PARKS MAINTENANCE
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

0.10 0.10

0.10 -
-

0.20 0.20
-

1.00 1.00
-
(1.00)

0.20 0.20

0.20 -

1.00 1.00

0.40 (0.60)

0.25 0.25

0.25 -

2.00 2.00

1.20 (0.80)
-
-

0.60 0.60

20.05 1 20.50
1 20.20
1 (0.30)

0.60 -
-
-
-

1.00 -
(1.00)

2.00 2.00

2.00 -

0.25 -

1.00 1.00

1.00 -
-
-

1.00 1.00

3.00 3.00

2.00 (1.00)

0.25 0.25

0.25 -

1.00 1.00
-
(1.00)

1.00 -
-
-

1.00 1.00

2.00 1.00

0.45 0.45
-
(0.45)
-

0.60 0.60
-

1.00 1.00

1.00 -

2.00 2.00

2.00 -

1.00 1.00

1.00 -

14.55 1 14.30

13.85 1 (0.45)
Asst. Director of Public Works 0.10
-
-
-
Director of Public Works 0.10

0.10 0.10
-
Landscape Inspector II 0.50

0.50 0.55

0.05 Lead Maintenance Worker 2.00

2.00 2.00
-
Lead Maintenance Worker -Electrician 0.40

0.10 0.10
-
Maintenance Superintendent 0.95

0.95 0.95
-
Maintenance Worker 1 2.00

1.00 1.00
-
Maintenance Worker 11 1.00

1.00 1.00
-
Management Assistant 0.25

0.25 -
(0.25)
Management Analyst -
-

0.25 0.25
Park Attendant 1 2.00

2.00 -
(2.00)
Annual Operating Budget 1 213

Park Attendant II
Senior Landscape Inspector
Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
Current
Proposed
Incr/(Decr)
2023-24
2024-25
2025-26
from Prior Yr

1.00 1.00

3.00 2.00

0.50 0.50

0.50 -

10.80 9.40

9.45 0.05

SERVICE LEVEL B
Senior Signal Technician -
-

0.80 0.80
Signal Technician 1 -
-

0.40 0.40
-

1.20 1.20
Total -

SERVICE LEVEL D
Maintenance Manager 0.15

0.15 0.15
-
Management Analyst
-

0.20 0.20
Management Assistant 0.20

0.20 -
(0.20)
Principal Management Analyst 0.05

0.05 -
(0.05)

0.40 0.35
(0.05)
Total 0.40
Grand Toal 53.75 1 53.70 1 53.65 (0.05)
*This decrease reflects a reallocation of 0.05 FTE to the Temecula Community Services District.

JIM
214 1 Annual Operating Budget

i -4 \N - /
f , \

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The Temecula Sheriff's Office is tasked with ensuring the safety of our community while maintaining the outstanding quality of life we all enjoy. The City contracts with the Riverside County Sheriff's Department for Police services and maintains 117 sworn officers, 18 non -sworn officers Community Service Officers (CSOs), three Sheriff Service Officers (SSOs), plus an additional 22 administrative support positions. Temecula has two centrally located Police Substations, one in Old Town Temecula at the Civic Center and one in the Promenade Mall.

SERVICES
Administration
• Manage personnel and operations at two Substation locations, City Hall, and the Southwest Station. • Coordinate with Human Resources to ensure effective deployment of personnel. • Prepare annual budgets and ensure sufficient funds are allocated for equipment and operations. • Coordinate station logistics, ensuring tracking of all equipment, property and evidence. • Oversee law enforcement aspects of City -held special events.

Investigations/Special Teams
• Provide specialized enforcement related to gangs, narcotics, crime trends, vice, and quality of life issues. • Develop and implement anti -graffiti programs and operations. • Follow up on investigations initiated through patrol calls for service. • Supervise and perform compliance enforcement of sex registrants. • Develop and implement community outreach programs including crime prevention and youth education. • Prepare and perform business liaison programs and presentations. • Provide a safety plan for all public events, as well as safety planning for City buildings. • Work collaboratively with the Code Enforcement and Fire Departments to address various crimes and municipal code violations.

Traffic Enforcement
• Maintain the safe flow of traffic and perform investigations of traffic collisions. • Ensure the safety of Temecula streets through the enforcement of all traffic laws. • Work with Traffic Engineering to analyze traffic flow and assist with developing methods to achieve the safe and efficient movement of traffic on Temecula roadways. • Provide rapid deployment for critical incidents.
�i
(D
Organizational Chart Expenditures by Category Personnel Performance Measures 216 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Patrol Services
• Utilize centralized, county -wide K9 Team to aid in the search of drugs, persons, and buildings. • Serve as first responders for criminal calls and calls for service. • Evaluate and report quality of life issues, which include graffiti, vandalism, and disturbing the peace. • Provide high visibility patrol throughout the City and interact with the community.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the Sheriff's Office include:

Administration
• Remodeled the Southwest Station to add an additional office meeting room and individual office spaces. (Accountable & Responsive City Government)
• Replaced the Southwest Station's old carpet with solid surface laminate flooring. (Accountable & Responsive City Government)
Investigations/Special Teams
• The Robbery/Burglary Suppression Team (BRST) continued to focus solely on investigating robberies and burglaries (vehicle, residential and commercial) occurring in the City of Temecula. This included actively identifying robbery and burglary suspects, making arrests, and preparing cases for criminal filings. (Safe & Prepared Community)
• The CORE Team continued to conduct proactive patrol and directed enforcement to address the quality -of -life issues in Temecula, including illegal vending, massage parlor compliance, and panhandling. (Safe & Prepared Community)
• The CORE Team continued to establish working relationships with business owners in Temecula and address various crimes and municipal code violations while educating employees working at businesses on the laws. (Healthy & Livable City).
• The CORE Team continued to work with the city Homeless Outreach Team to manage issues related to the homeless and/transient community. (Healthy & Livable City). • The Special Enforcement Team continued to conduct specialized enforcement related to gangs, narcotics, and crime trends. (Safe & Prepared Community)
• The METRO Team continued to provide proactive patrols in the Old Town area and continued to work with Code Enforcement, Building & Safety, and the Fire Department to address business -related concerns and maintain a safe environment. (Safe & Prepared Community) Traffic Enforcement
• Continued the open dialog with Traffic Engineering to improve traffic safety in the new fiscal year. (Transportation Mobility & Connectivity)
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 217

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Continued to partner with non-profit agencies such as MADD, OTS, and DUITT to provide traffic safety presentations, DUI related enforcement and educational programs. (Safe & Prepared Community) • Continued to provide enforcement and education with the goal of reducing red light violators by 20%. (Transportation Mobility & Connectivity)
• Continued high -visibility enforcement with the goal of reducing street racing and noise pollution. (Transportation Mobility & Connectivity)
• Continued the partnership with TVUSD and School Resource Deputies to increase traffic safety in school zones.

The Motorcycle Enforcement Team will remain visible at Temecula schools during drop-off and pick-up times. (Transportation Mobility & Connectivity)
• Increased the number of high -visibility saturation patrols for FY2024-25. (Transportation Mobility & Connectivity) Patrol Services
• Continued collaboration and briefing training with the Community Behavioral Health Assessment Team (CBAT) to assist patrol deputies in utilizing best practices when dealing with persons in distress/crisis due to mental health issues. (Safe & Prepared City)
• Continued collaboration with CORE Team to effectively help homeless people within the City. Utilized all options and available resources as an alternative to incarceration. (Healthy & Livable City) • Promoted continued education and ensured deputies receive specialized training to properly investigate a wide variety of crimes. (Healthy & Livable City)
s n't-�►
s„
Organizational Chart Expenditures by Category Personnel Performance Measures 218 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from the Sheriff's Office include:

Administration
• Remain one of the safest cities in California and the nation. (Accountable & Responsive City Government) • Provide consistently professional services and information to customers and constituents. (Accountable & Responsive City Government)
Investigations/Special Teams
• The Robbery/Burglary Suppression Team (BRST) will focus solely on investigating robberies and burglaries (vehicle, residential and commercial) occurring in the City of Temecula. This includes actively identifying robbery and burglary suspects, making arrests, and preparing cases for criminal filings. (Safe & Prepared Community) • The CORE Team will conduct proactive patrol and directed enforcement to address the quality -of -life issues in Temecula, including illegal vending, massage parlor compliance, and panhandling. (Safe & Prepared Community) • The CORE Team will establish working relationships with business owners in Temecula and address various crimes and municipal code violations while educating employees working at businesses on the laws. (Healthy & Livable City).
• The CORE Team will work with the city Homeless Outreach Team to manage issues related to the homeless and/transient community. (Healthy & Livable City).
• The Special Enforcement Team will continue to conduct specialized enforcement related to gangs, narcotics, and crime trends. (Safe & Prepared Community)
• The METRO Team will provide proactive patrols in the Old Town area and continue to work with Code Enforcement, Building & Safety, and the Fire Department to address business -related concerns and maintain a safe environment. (Safe & Prepared Community)
Traffic Enforcement
• Continue the open dialog with Traffic Engineering to improve traffic safety in the new fiscal year. (Transportation Mobility & Connectivity)
• Continue to partner with non-profit agencies such as MADD, OTS, and DUITT to provide traffic safety presentations, DU -related enforcement and educational programs. (Safe & Prepared Community) • Continue to provide enforcement and education with the goal of reducing red light violators by 20%. (Transportation Mobility & Connectivity)
• Continue high -visibility enforcement with the goal of reducing street racing and noise pollution. (Transportation Mobility & Connectivity)
• Continue the partnership with TVUSD and School Resource Deputies to increase traffic safety in school zones.

The Motorcycle Enforcement Team will remain visible at Temecula schools during drop-off and pick-up times. (Transportation Mobility & Connectivity)
• Increase the number of high -visibility saturation patrols for FY2024-25. (Transportation Mobility & Connectivity) n
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 219

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Patrol Services
• Continue collaboration and briefing training with the Community Behavioral Health Assessment Team (CBAT) to assist patrol deputies in utilizing best practices when dealing with persons in distress/crisis due to mental health issues. (Safe & Prepared City)
• Continue collaboration with CORE Team to effectively help homeless people within the City. Utilize all options and available resources as an alternative to incarceration. (Healthy & Livable City) • Promote continued education and ensure deputies receive specialized training to properly investigate a wide variety of crimes. (Healthy & Livable City)
�I
Organizational Chart Expenditures by Category
n�E)n
Personnel Performance Measures
220 1 Annual Operating Budget

Mark Rigali
Captain/Temecula Police Chief
Police Administration' Investigations/ I
Traffic Enforcement' Patrol Services
Special Teams
Administrative Detectives School Resources patrol Officers Support Officers
Special
Clerical
Traffic Unit Patrol CSOs
Enforcement
Team
Training
Special Events
CORE Team
Logistics
Volunteers
METRO Team
Mall/Old Town
Substations
Gang Task Force
Sheriff Service
Burglary/Robbery
Officers
Suppression
Team
c

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
SHERIFF'S OFFICE 170
SALARIES & BENEFITS Total
96,136
60,504
27,835
(32,669)
-53.99%
OPERATIONS & MAINTENANCE Total
40,162,109
42,961,577
47,573,631
4,612,054

10.74%
INTERNAL SERVICE FUND ALLOCATIONS Total
412,473
608,372
680,936
72,564

11.93%
CAPITAL OUTLAY Total
114,584
0 192,000
192,000
100.0%
Division Total
40,785,303
43,630,453
48,474,402
4,843,949

11.1%

ANALYSIS/COMMENTS
Temecula Sheriff's Office:

Expenditures are projected to increase by 11.1% to reflect the contractual obligations between the City and Riverside County, who provides law enforcement services to the City, and higher Internal Service Fund Allocations.

Salaries and Benefits reflect a reduction due to the decrease in Part -Time Project positions from two to one, as these positions gradually shift over to the Sheriff's Support Officer positions to be provided by the County through the contract. Capital Outlay expenditures have increased due to unavailability of motorcycles in 2024-25; this budget has rolled forward to 2025-26.

LJ
222 1 Annual Operating Budget

PERSONNEL ALLOCATIONS
SHERIFF'S OFFICE (Non -Contract
Employees)
Fiscal Services Manager
Total
SHERIFF'S OFFICE (Contract Employees)
Chief of Police
Lieutenant
Sergeant
Patrol Officers
Gang Task Force Officer
Mall Officers
Traffic Accident Investigators
Traffic Motorcycle Officers
K9 Officers
Special Enforcement Team Officers
Problem Oriented Policing Team Officers
Civic Center Deputy
Pechanga Deputy
School Resource Officers
Youth Action Team (YAT) Officer
Investigators
Total
Grand Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

0.15 -
-
-

1.00 1.00

1.00 5.00

5.00 5.00

15.00 15.00

15.00 40.70

40.70 40.70

1.00 1.00

1.00 4.00

4.00 4.00

5.00 5.00

5.00 12.00

12.00 12.00

1.00 1.00

1.00 -

1.00 1.00

1.00 -

5.00 5.00

5.00 -

1.00 1.00

1.00 -

7.00 7.00

7.00 -
116.70
116.70
116.70
-
116.85
L_J
116.70
116.70
Annual Operating Budget 1 223

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
224 1 Annual Operating Budget

CITY OF TEMECULA
a IN= DMIMARI M 1:10 11
Annual Operating Budget 1 225

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

MISSION
The Temecula Fire Department maintains the highest levels of fire and rescue, Fire Marshal, Emergency Management and community involvement in order to provide the safety of both our residents and visitors of Temecula. The City of Temecula contracts with the CAL FIRE/Riverside County Fire Department for Fire services. The Temecula Fire Department provides Emergency Operation, Emergency Management, Fire Department and Fire Marshal services. Fire Department Emergency Operations provides comprehensive emergency services utilizing a highly trained work force, progressive technology, and modern equipment to provide fire and paramedic services.

The Fire Marshal's office in cooperation with the Fire Department is dedicated to conducting public information and education programs that emphasizes the prevention of fire to preserve life and create fire safety. The Fire department is expanding the education with the business community through the annual inspection program. This allows the department to collaborate with the business owners to ensure they are in compliance, and they can continue to operate in a safe environment.

SERVICES
Emergency Operations
• Serve as first responders for all risk emergency calls and public assist calls for service within the City of Temecula. • Provide CPR/AED, Health Care Provider, and First Aid certification training. • Oversee the Temecula Citizen Corps Emergency Response Team Program.

Emergency Management
• Enhance public protective actions and promote domestic preparedness through a comprehensive and effective emergency management program that will adequately mitigate, prepare for, appropriately respond to, and quickly recover from natural, technological, and terrorist -related emergencies that may impact the City of Temecula.
• Increase the capability of City staff, Incident Management Team (IMT) members, and community stakeholders to effectively respond to all -hazards event, and develop and coordinate with internal and external stakeholders in the execution of an Integrated Prepared Plan (IPP) that incorporates the training goals of the "whole community."
• Coordinate with various City agencies and volunteer groups to promote individual and family preparedness and readiness in support of department's "Disaster Ready — Disaster Resilient" strategic goal. • Establish and maintain the equipment, hardware, and software necessary to ensure Citywide interoperability of communications systems in support of first responder agencies, volunteer groups, and emergency operations.
• Coordinate with City departments, offices, agencies, and stakeholders in executing the functions as the hub for providing resource allocation to responding agencies during times of disaster or emergency. Serve as the central point of coordinating operational, administrative, and support needs of the City. Assist in the coordination and communication between response agencies and mutual aid coordinators during emergency response and recovery operations.
n
Organizational Chart Expenditures by Category Personnel Performance Measures 226 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Develop and implement required plans, support plans, and hazard specific appendices that support the response operations of the City in collaboration with the County and community stakeholders utilizing an all - hazards approach. Prioritize, scope, and implement projects that are designed to mitigate risk. Plan, train, and exercise public safety professionals to enhance their readiness to respond. • Provide oversight and guidance to the Temecula Citizen Corps (TCC) and their Emergency Response Team program.

Fire Marshal
• Perform annual and State mandated inspections to ensure fire and life safety compliance. • Educate the public in fire safety and prevention strategies.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Fire include:

Emergency Operations
• Maintained five-minute response times to all calls for service. (Safe & Prepared Community) • Retained four -person staffing on all City engines and truck companies. (Safe & Prepared Community) • Continued CPR, First Aid, Stop the Bleed and Community Emergency Response Team (CERT) classes to the community in a safe environment. (Safe & Prepared Community) • Continued to train with the City's Emergency Operations manager and Center to be ready for an emergency incident within the City. (Safe & Prepared Community)
• Continued to work and train with cooperating agencies and to maintain good relationships for response to multi -jurisdictional incidents within the Temecula Valley. (Safe & Prepared Community) Emergency Management
• Increased the capability and capacity of the Temecula Citizen Corp (TCC) program to ensure the ability to rapidly respond to emergencies and incidents. Develop and maintain CERT Training program to further enhance the community's resilience through education. (Safe & Prepared Community) • Provided additional inclusive training opportunities to the City's population by providing Community Emergency Response Team (CERT) Training in Spanish. (Safe & Prepared Community) Fire Marshal
• Restructured the current Fire fee schedule and created an annual inspection fee during the fee study process. (Safe & Prepared Community)
• Continued inspections for all State Mandated regulated facilities governed by the State Fire Marshal on an annual basis for fire and life safety. (Safe & Prepared Community) • Continued working with the community to educate them on Fire, Life and Safety. (Safe & Prepared Community) it n�
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 227

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from Fire include:

Emergency Operations
• Maintain five-minute response times to all calls for service. (Safe & Prepared Community) • Retain four -person staffing on all City engines and truck companies. (Safe & Prepared Community) • Continue CPR, First Aid, Stop the Bleed and Community Emergency Response Team (CERT) classes to the community in a safe environment. (Safe & Prepared Community) • Continue to train with the City's Emergency Operations manager and Center to be ready for an emergency incident within the City. (Safe & Prepared Community)
• Continue to work and train with cooperating agencies and to maintain good relationships for response to multi - jurisdictional incidents within the Temecula Valley. (Safe & Prepared Community) Emergency Management
• Begin the development of the City's first City -Wide Mass Evacuation Plan to ensure the principles, structures, roles, and responsibilities are in place for a coordinated evacuation. The plan will incorporate and comply with principles and requirements found in Federal and State laws, regulations, and guidelines. (Safe & Prepared Community)
• Develop complete mitigation projects as approved within the Local Hazard Mitigation Plan (LHMP) to reduce or lessen the impact of identified hazards within the community and their impacts on residents and their livelihoods. (Safe & Prepared Community)
• Continue to increase the capability and capacity of the Temecula Citizen Corps (TCC) program to ensure the ability to rapidly deploy and respond to emergencies and incidents. Develop and maintain Community Bases CERT Training program to further enhance the community's resilience through education and preparedness. (Safe & Prepared Community)
• Continue to provide additional inclusive training opportunities to the City's population by providing CERT Training and LISTOS training in Spanish. (Safe & Prepared Community) • Begin the development of the Emergency Operation Center's (EOC) cost recovery standards, resource ordering and tracking process for the EOC Logistics Section, enabling the proper documentation standards established by CalOES and FEMA are met. This will ensure that the City is able recover all potential reimbursement costs, post -incident. (Safe & Prepared Community)
Fire Marshal
• Continue inspections for all State Mandated regulated facilities governed by the State Fire Marshal on an annual basis for fire and life safety. (Safe & Prepared Community) • Continue working with the community to educate them on Fire, Life and Safety. (Safe & Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 228 1 Annual Operating Budget

'1-
M.
b
John Crater
Division Chief/Temecula
Fire Chief
Emergency I
I
Emergency
Operations Fire Marshal Management
Fire Information Program
Suppression M and Education M Management
Emergency
Medical Planning and Training and
Services 0 Engineering Exercises
Community
All Risk
Enforcement Engagement
Responses
and Outreach
Non -Response
Annual
Communications
Activities
Program
Temecula Inspection Emergency
Citizen Corps Services Operations
Center
Permit -
Issuance Planning
C/

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
CAPITAL OUTLAY Total
Division Total

FIRE - FIRE -PARAMEDICS
OPERATIONS & MAINTENANCE Total
Division Total

FIRE - FIRE PREVENTION
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
CAPITAL OUTLAY Total
Division Total
EMERGENCY MANAGEMENT 115
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
INTERNAL SERVICE FUND ALLOCATIONS Total
CAPITAL OUTLAY Total
Division Total

ANALYSIS/COMMENTS
148,037
178,847
183,598
4,751

2.66%
8,144,288
8,042,479
10,450,376
2,407,897

29.94%
544,784
513,129
350,847
(162,282)
-31.63%
46,966
0 0
0 0.0%
8,884,075
8,734,455
10,984,821
2,250,365

25.76%
62,005
98,400
81,900
(16,500)
-16.77%
62,005
98,400
81,900
(16,500)
-16.77%
449,195
562,487
631,398
68,911

12.25%
1,251,666
1,407,983
1,758,868
350,885

24.92%
209,276
210,235
466,026
255,791
121.67%
0 70,000
0 (70,000)
-100.0%
1,910,137
2,250,705
2,856,292
605,587

26.91%
167,300
186,806
209,207
22,400

11.99%
98,307
254,749
253,317
(1,432)
-0.56%
223,347
279,043
319,028
39,985

14.33%
29,021
5,000
5,000
0 0.0%
517,975
725,598
786,552
60,953

8.4%
Fire:

Fire department expenditures are projected to increase by 25.62% due to contractual rates provided by the County, who contracts with the City to provide Fire Prevention and Suppression services, calculated cost of living adjustments for non -contracted staff, and higher Internal Service Fund Allocations.

Emergency Management:

Emergency Management reflects an increase of 8.4% due to a reclassed position, the calculated cost of living adjustments, and higher Internal Service Fund Allocations. �J
230 1 Annual Operating Budget

PERSONNEL ALLOCATIONS
FIRE (Non -Contract Employees)
Community Development Technician I -Fire
Community Development Technician II -Fire
Fire Inspector I
Fire Inspector 11
Management Analyst
Office Specialist I
Senior Community Development
Technician
Total
FIRE (Contract Emolovees
Battalion Chief
Fire Captain
Fire Captain Medic
Fire Chief
Fire Engineer
Fire Engineer Medic
Fire Fighter II
Fire Fighter II Medic
Fire Safety Supervisor
Fire Safety Specialist
Fire Systems Inspector
Total

EMERGENCY MANAGEMENT
Emergency Manager
Senior Management Analyst
Total
Grand Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr
-

1.00 1.00
-

1.00 1.00

1.00 -

1.00 -
-
-
-

1.00 1.00
-

1.00 1.00

1.00 -
-
-

1.00 1.00

1.00 -
-
-

4.00 1 4.00
1 5.00
1 1.00

1.00 1.00

1.00 -

15.00 18.00

17.00 (1.00)

1.00 1.00

1.00 -

1.00 1.00

1.00 -

11.00 11.00

11.00 -

6.00 6.00

6.00 -

16.00 16.00

22.00 6.00

15.00 18.00

12.00 (6.00)

1.00 1.00

1.00 -

2.00 2.00

2.00 -

3.00 3.00

5.00 2.00

72.00 78.00

79.00 1.00
-

1.00 -

1.00 1.00
-

1.00 (1.00)

1.00 1.00

1.00 -

77.00 82.00

84.00 2.00
*This increase reflects the addition of 1.00 non -contracted Office Specialist 1 for FY25-26 and 2.00 contracted Fire Systems Inspectors that were added during the FY24-25 Mid -Year Budget update, offset by 1.00 reduction of a contracted Fire Captain.

Riverside County provides cost sharing for staffing at Fire Station No. 95, whereby the County pays for 4 positions in 2023-24 and 5 positions in 2024-25 and 2025-26.

L_J
Annual Operating Budget 1 231

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
232 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
Non -Departmental is a cost center for general administrative expenditures such as the Retiree Medical Contribution, CaIPERS Replacement Benefit and Property Tax Administrative Fees. It also reflects Operating Transfers Out to the Capital Improvement Program and other City funds. 234 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
GENERAL FUND 001
NON -DEPARTMENTAL 199
SALARIES & BENEFITS Total
0 (2,710,437)
(3,477,724)
(767,287)

28.31%
OPERATIONS & MAINTENANCE Total
4,394,881
1,072,100
674,400
(397,700)
-37.1%
TRANSFERS Total
17,831,046
11,008,195
8,767,833
(2,240,362)
-20.35%
Division Total
22,225,927
9,369,858
5,964,509
(3,405,349)
-36.34%

ANALYSIS/COMMENTS
Non -Departmental:

Non -Departmental expenditures are projected to decrease due to the large one-time transfers in 2024-25 to increase the Insurance and Workers' Compensation Fund reserves, and a decreased Transfer Out to the Capital Improvement Program for the Comprehensive General Plan Update project. 2023-24 expenditures include the continuation of the City's Debt/Liability Paydown Strategy, with the Transfer of $3,254,000 to pay off the Other Post -Employment Benefits (OPEB) unfunded liability, an additional contribution of $14,538,003 towards the City's unfunded Pension liability, and another $2 million contribution to the City's Pension Trust. Also reflected in the Salaries and Benefits category is the anticipated CalPERS employer contribution savings resulting from the previous $21.8 million payment towards the unfunded Pension liability.

As of May
2025
Funding Sources
Payoff Schedule
Annual
Updated
Pension
Available
OPEB
Pension
Civic Center
MRC
Budgetary
Change
Year#
Fiscal Year
Trust
Fund Balance
Liability
Liability
Loan
Loan
Savings
From Original
1 2022-23
5,000,000
19,913,606
7,250,000
12,624,607
5,038,999
(1,620,001)
(364,988)
2 2023-24
7,000,000
10,792,003
3,254,000
14,538,003
(3,253,835)
1,893,000
3 2024-25
5,000,000
2,913,492
7,913,492
(5,522,203)
(321,458)
4 2025-26
2, 000, 000
6,267,833
8,267,833
(5,598,373)
1,448,821
5 2026-27
8,455,217
8,455,217
(5,680,108)
6,277,059
6 2027-28
9,019,970
9,019,970
(5,763,328)
(1,184, 698)
7 ---8-----2029-30
2028-29
-------------------------------------
6, 304, 545
6, 304, 545
------(5,938,215)
(5, 851, 032)
--(1,125, 490)
9 2030-31
(5,566,423)
10 2031-32
(4,356,798)
19,000,000
63,666,666
3,254,000
61,749,060
12,624,607
5,038,999
(49,150,315)
6,622,246
Change from Origin al 2,000,000 1,885,165 (2,107,000) 9,095,257 Total Interest Savings n/a 30,763,360
L_J
(327,393) (38,618) 8,999,878
2,187,894 1,036,267
Annual Operating Budget 1 235

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
236 1 Annual Operating Budget

!�
' �r � F . ��. �r• �3 .tiwr i+ lM^.. �ry�� dry _ �� + �� 1 Mc`

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
Provide programs that educate, entertain, and enrich the community. Host exceptional special events that foster a sense of community and pride for our residents and raise the City's profile as a tourism destination. Arrange for services and programs to support at -risk populations, including seniors, veterans, teens, and those with special needs.

SERVICES
Community Services
• Plan, program and implement a wide variety of leisure services and contract classes for residents of all ages and abilities.
• Participate in the Capital Improvement Program with projects that include developing new and/or improving existing parks and recreational facilities.
• Reserve and program numerous facilities, including the Community Recreation Center, Temecula Community Center, Temecula Skate Park, Margarita Recreation Center, Patricia H. Birdsall Sports Park, Jefferson Recreation Center, Ronald H. Roberts Temecula Public Library, The Sports Ranch at Sommers Bend and Citywide park shelters. • Create multi -media Community Outreach collateral to increase public awareness of Community Services programs, facilities, and events.

Recreation
• Provide a variety of recreational and competitive sporting opportunities Citywide. • Provide an all-inclusive year-round aquatics program. • Program, reserve and maintain the sports fields, pools, courts, and rinks for recreation and competitive leagues and tournaments.

Citywide Events
• Organize signature City events such as the Easter Egg Hunts, Fourth of July celebration, Santa's Electric Light Parade, and Rod Run.
• Provide free family activities including monthly Art Walk events and seasonal Summer Concert series. • Provide co-sponsorship of funds or in -kind services to special events.

Arts and Culture
• Enrich, educate, and entertain our community by providing cultural experiences through the fine and performing a rts.
• Continue to strive for excellence by bringing in professional artists and continuing the traditional and unique programming through "Temecula Presents."
• Partner with local schools and studios to offer enhanced artistic and cultural experiences to youth. • Serve as a significant cultural asset to the local and regional community. i
Organizational Chart Expenditures by Category Personnel Performance Measures 238 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Enrich, educate, and entertain the community by providing experiences in historical preservation and cultural learning.
• Supplement public education through use of traveling exhibits, historical walking tours, museum tours, and history contests.

Human Services
• Build and expand partnerships that improve the overall quality and coordination of services and programs. • Coordinate Homeless Outreach, prevention, and mitigation efforts with staff, community partners, businesses, and public safety.
• Develop opportunities that support youth, young adults, persons with disabilities, senior citizens, and at -risk populations.
• Engage youth in student -based advisory boards which promote community and civic involvement. • Offer nutritional, health, and wellness education, and social programs for seniors. • Provide learning experiences, leadership development, and career and educational pathways for youth, young adults, older adults, and veterans through inclusive workforce opportunities. • Provide training among City staff and local key constituencies that serve persons with disabilities. • Provide outreach to the City's military and veteran community.

Administration
• Support City strategic initiatives that enhance community partnerships, optimize utilization of resources, and advance the mission of the organization.
• Participate in the Capital Improvement Program with projects that include developing new and/or improving existing parks and recreational facilities.
• Provide library services including collections that include books, periodicals, DVDs, CDs and resource databases geared for adults, teens, and children; provide resources via a partnership between the Temecula Valley Unified School District, and Law Library Services via a partnership with the Riverside County Law Library.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Temecula Community Services District include:

Community Services
• Developed a Water Safety Program within the next year for children in grades K-3rd. This is very important as the Centers for Disease Control and Prevention lists drowning as the leading cause of death of children in children ages 1-4, and the second leading cause of death for children ages 5-14. This will be a five-year goal, where programming will be added each year thereafter for additional age groups and for parents. (Safe & Prepared Community) • Updated, refreshed and monitored TCSD's division webpages to ensure each page provides our community with the most up-to-date information. (Accountable & Responsive City Government) • Enhanced and expanded Teen Zone offerings by creating a weekly home school day and providing local excursions to increase teen participation. (Equity)
r1
� 0
A ,
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 239

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Launched new Summer Day Camp (Camp Soar) at the Margarita Recreation Center to serve the unmet need at the CRC. (Healthy & Livable City)
Recreation
• Planned, programmed, and operated a year-round aquatics program with a variety of classes and activities for a range of ages and abilities, including children, adults, seniors, and special needs populations at the MRC pool. (Healthy & Livable City)
• Continued to establish programming for leagues, rentals, and tournaments at Ronald Reagan Sports Park's newly renovated hockey rink. (Healthy & Livable City)
• Established programming for public use of the new pickleball complex at Ronal Reagan Sports Park. (Healthy & Livable City)
• Designed a new route for the annual Color Run, due to various renovations taking place at Ronald Reagan Sports Park and the Community Recreation Center. (Healthy & Livable City) • Launched new Summer and Spring active outdoor activities for seniors through the Shuffleboard Program. (Healthy & Livable City)
Citywide Events
• Provided safe and family -friendly community events for all residents and visitors. (Healthy & Livable City) • Worked closely with the Riverside Sheriff's Office on Community Special Events to ensure the safety of all staff, spectators, and participants. (Safe & Prepared Community) Arts and Culture
• Promoted arts education and creativity through performance and visual arts. (Healthy & Livable City) • Developed strategic partnerships to increase area awareness about the Community Theater and its productions. (Healthy & Livable City)
Human Services
• Expanded Jr STEM Camp to two sessions in the summer to give more opportunities for innovation and creativity to the youth in the City. (Equity)
• Developed programs to provide more in-depth information and valuable experiences, such as CPR certifications and facility tours to the youth throughout workforce programs. (Equity) • Participated in the 2025 Point -In -Time Count and show a reduction on the City's incidence of homelessness by continuing to provide outreach and connect individuals to appropriate resources for stabilization. (Healthy & Livable City)
• Conducted a City -focused homeless census to gather data that will help connect individuals experiencing homelessness in the City with shelters and align local resources to reduce the City's incidence of homelessness. (Healthy & Livable City)
• Expanded the Summer Food Service Program (SFSP) to serve meals at the Margarita Recreation Center five days a week and continued to maintain SFSP service at Rotary Park. (Equity) ` UL
Organizational Chart Expenditures by Category Personnel Performance Measures 240 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
• Expanded Human Services and Inclusion programs at the Magarita Recreation Center and promoted diversity of programs that meet the unique needs of the area's demographic. (Equity) • Collaborated with public and private agencies to create opportunities for young adults with disabilities who are transitioning into the workforce. (Equity)
• Collaborated with the Department of Emergency Management to address the need to reach underserved populations during a disaster or other emergency preparedness situations. (Safe & Prepared Community) Administration
• Continued to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the department. (Accountable & Responsive City Government) • Continued to implement recommendations from the Community Services Master Plan. (Healthy & Livable City) • Continued to partner with Public Works to complete replacements of identified park playgrounds. (Sustainable & Resilient City)
• Worked with Community Services managers to accurately project budget needs and minimize variances. (Accountable & Responsive City Government)
• Promoted Little Sprouts Seed Library. In cooperation with Vlada's Seeds of Life and sponsored by the Friends of the Temecula Libraries, this provides free, organic seeds to encourage families to grow a home garden and to educate children about nutrition and sustainable gardening. (Healthy & Livable City) • Began a new summer program, Lunch at the Library, pop-up at MRC. Library staff will present story times with related activities for youth from low-income families and free books and meals during summer when children are not receiving free lunches at school. (Equity)
• Promoted Teen Teaching Tech program in partnership with the Heart of Temecula Leo Club. This is a cross generational program where teens provide adults/seniors with one-on-one tutoring for electronic devices and provide community service hours towards graduation requirements. (Equity) • Continued partnership with Riverside County Law Library to provide Temecula Law Resource Center, which offers free legal assistance and legal resources in the library, as well as free programs on topics like estate planning, landlord/tenant relations, and more. (Equity)
• Collaborated with TVUSD to reopen the Technology and Homework Center. The Homework Center, when properly staffed by TVUSD personnel, provides 22 computers and peer tutors who offer free tutoring and homework assistance to K-12 students, five days a week. Peer tutors then earn volunteer service hours towards graduation requirements. (Healthy & Livable City)
,. amp
�i
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 241

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from Temecula Community Services District include:

Community Services
• Enhance customer service experience and increase revenue by auditing existing rental facilities and procedures, and by working with the media team to promote City facilities. (Healthy & Livable City) • Finalize and release the new TCSD Marketing & Media guide, which is designed to be used in all marketing material produced by each division. This will help create consistency across all divisions and safeguard our brand's reputation. (Healthy & Livable City)
• Increase community classes and programs at the Temecula Community Center to maintain the number of classes offered to Temecula residents. (Healthy & Livable City) • Update the remaining TCSD division webpages to ensure each division's page provides our community with the most current and up-to-date information. (Accountable & Responsive City Government) Recreation
• Continue to provide a fun and safe environment, featuring a wide variety of recreational activities during Summer Day Camp. (Healthy & Livable City)
• Continue to establish programming for leagues, rentals, and tournaments at Ronald Reagan Sports Park's soon -to - be renovated hockey rink. (Healthy & Livable City)
• Create new programs and opportunities within the Teen Zone to increase memberships. (Healthy & Livable City) • Create a Water Safety Program with different segments geared toward all ages and abilities. Once developed, aquatics staff will take this program to local schools, HOAs and other community groups requesting water safety training. This will promote water safety and the importance of supervision around water activities and swim lessons to reduce the risk of drowning. (Safe & Prepared Community) • Establish programming for public use of the new pickleball complex at Ronald Reagan Sports Park. (Healthy& Livable City)
• Plan, program, and operate two year-round and one seasonal aquatic center with a variety of classes and activities for a range of ages, and abilities including children, adults, seniors, and special needs populations at the MRC, CRC, and CHS aquatic centers. (Healthy & Livable City)
Citywide Events
• Provide safe and family -friendly community events for all residents and visitors. (Healthy & Livable City) • Work closely with the Riverside Sheriff's Office, Cal Fire, and Emergency Management on community Special Events to ensure the safety of all staff, spectators, and participants. (Safe & Prepared Community) �� 0,-
''
A 19
Organizational Chart Expenditures by Category Personnel Performance Measures 242 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Arts and Culture
• Continue to work with the local art community to expand opportunities for public art. (Healthy & Livable City) • Create strategic partnerships to increase area awareness about the Community Theater and its productions. (Healthy & Livable City)
• Educate the community by providing experiences and events in historical preservation, appreciation, celebration, and cultural learning through monthly Culture Day celebrations, guest lectures, gallery talks, Temecula History Day, and Out of The Archives presentations. (Healthy & Livable City) • Partner with local schools to offer educational experiences to youth through field trip tours and history project contests. (Healthy & Livable City)
• Promote Arts Education and creativity through performance and visual arts by partnering with local schools. (Healthy & Livable City)
Human Services
• Conduct a City -focused homeless census to gather data that will help connect individuals experiencing homelessness in the City of Temecula to shelter and align local resources to reduce the City's incidence of homelessness. (Healthy & Livable City)
• Develop programs to provide more valuable experiences, such as CPR certifications, Food Handlers Certificate, and facility tours to youth through workforce programs. (Healthy & Livable City) • Participate in the 2026 Point -In -Time Count and show a reduction on the City's incidence of homelessness by continuing to provide outreach and connect individuals to appropriate resources for stabilization. (Healthy & Livable City)
• Continue Human Services and Inclusion programs at the Margarita Recreation Center and promote diversity of programs that meet the needs of the community. (Equity) • Continue to offer the Margarita Recreation Center's After School Program based on the needs of the community and to include after school snack, homework/tutoring, literacy, enrichment, and recreation. (Equity) • Provide comprehensive service support to seniors and active adults at the Mary Phillips Senior Center by way of seamless transportation service, meals and nutrition, health and wellness, recreation, and socialization. (Healthy & Livable City)
• Meet the service demands of the Summer Food Service Program at the Mike Naggar Community Park. (Equity) • Ensure a seamless operations of the summer day camp program at the Margarita Recreation Center — Camp SOAR. (Equity)
• Collaborate with public and private agencies to leverage funds and resources that support youth, at -risk families, and individuals with disabilities. (Sustainable & Resilient City) • Develop community service opportunities that support the community (Veterans Appreciation Breakfast and Young Men's Career Conference). (Equity)
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 243

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Administration
• Continue to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the Department. (Accountable & Responsive City Government) • Continue to implement recommendations from the Community Services Master Plan. (Healthy & Livable City) • Continue to partner with Public Works to complete replacements of identified park playgrounds. (Sustainable & Resilient City)
• Work with Community Services Managers to accurately project budget needs and minimize variances. (Accountable & Responsive City Government)
• Provide library services including collections of books, periodicals, DVDs, CDs and resource databases geared for adults, teens, and children; provide resources via a partnership between the Temecula Valley Unified School District, and Law Library Services via a partnership with the Riverside County Law Library. (Equity) • Provide Little Sprouts Seed Library. In cooperation with Vlada's Seeds of Life and sponsored by Friends of the Temecula Libraries, this provides free seeds to encourage families to grow a home garden and to educate children about nutrition and sustainable gardening. (Healthy & Livable City) • Continue to offer Lunch at the Library pop-up at MRC. Library staff will present story times with related activities for youth from low-income families, providing free books to build home libraries and meals during summer when children are not receiving free lunches at school. (Equity) • Promote Teens Teaching Tech program in partnership with the Heart of Temecula Leo Club. This is a cross generational program where teens provide adults/seniors with one-on-one tutoring for electronic devices and provide community service hours towards graduation requirements. (Equity) • Continue partnership with Riverside County Law Library to provide Temecula Law Resource Center, which offers free legal assistance and legal resources in the library, as well as free programs on topics like estate planning, landlord/tenant relations and more. (Equity)
• Collaborate with TVUSD to host the Technology Homework Center. In addition to providing computers, Wi-Fi, and study space, the Homework Center, staffed by TVUSD personnel, offers free peer tutoring and homework assistance to K-12 students, five days a week. Peer tutors then earn volunteer service hours towards graduation requirements. (Healthy & Livable City)
• Serve on the Audiovisual Automation RFP panel and coordinate with City IT and Emergency Manager to equip library to serve as secondary EOC for the City. (Safe & Prepared Community) • Provide new outreach with an Inclusive Social Hour for adults with special needs to provide socialization and community. (Equity)
• Collaborate with the Native Plant Network to maintain the newly planted Butterfly Garden and to seek funding for signage and additional native plants. Educate families about monarch migration and pollinator gardens by hosting a family event. (Healthy & Livable City)
• Continue providing educational programs in coordination with the City's Emergency Manager on Wildfire Preparedness and Earthquake Preparedness, and other safety topics for adults. (Safe & Prepared Community) Organizational Chart Expenditures by Category Personnel Performance Measures 244 1 Annual Operating Budget

rot I
Erica Russo
Director of Community Services
Community
Recreation
Special Events
Arts & Culture
Services
Services
Sports
Signature Events
�
Community
Theater
EFacility Rentals
Aquatics
Community
Events
History Museum
Media)
Com unit
Recreation
Pro rammin
g g
Cultural Arts
Events
Sister Cities
Relationsy

MEMEMMEM
Parks and fields
Public Art
Human Services = Administration
Seniors and
Park and Facility
Active Adults
Development
Inclusion Services
�
Strate is and
Master Manning
Homeless
�
Outreach
Library Services
College and
City & Regional
Career
Initiatives
Preparation
Support
Veterans
Outreach

MEMEMMEN
Budgget
Administration
Volunteer
Coordination
14 City of Temecula
rll�r Fiscal Year 2025-26
l Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
TEMECULA COMMUNITY SERVICES DISTRICT FUND 190

CITYWIDE OPERATIONS
SALARIES & BENEFITS Total 9,886,945 11,770,915 12,397,747 626,833 5.33% OPERATIONS & MAINTENANCE Total 3,802,279 4,670,880 4,094,798 (576,082)-12.33% INTERNAL SERVICE FUND ALLOCATIONS Total 2,694,441 2,724,332 2,810,839 86,507 3.18% CAPITAL OUTLAY Total 37,765 0 0 0 0.0%
TRANSFERS Total 37,706 0 0 0 0.0%
Division Total 16,459,136 19,166,127 19,303,384 137,258 0.72%

CITYWIDE OPERATIONS - MAINTENANCE
SALARIES & BENEFITS Total 707,385 809,578 971,314 161,736 19.98% OPERATIONS & MAINTENANCE Total 1,068,363 1,141,010 1,036,889 (104,121) -9.13% Division Total 1,775,749 1,950,588 2,008,203 57,615 2.95% TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 191 OPERATIONS 180
OPERATIONS & MAINTENANCE Total 0 0 20,000 20,000 100.0% Division Total 0 0 20,000 20,000 100.0%
TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 192
OPERATIONS 180
SALARIES & BENEFITS Total 0 0 206,647 206,647 100.0%
OPERATIONS & MAINTENANCE Total 341,632 484,000 483,688 (312) -0.06% INTERNAL SERVICE FUND ALLOCATIONS Total 0 0 36,603 36,603 100.0% TRANSFERS Total 200,000 200,000 0 (200,000)-100.0%
Division Total 541,632 684,000 726,938 42,938 6.28%
SERVICE LEVEL"C"ZONES (FUND 501-529)
OPERATIONS 180
OPERATIONS & MAINTENANCE Total 1,436,817 1,594,084 1,668,781 74,697 4.69% TRANSFERS Total 411,891 39,809 0 (39,809)-100.0%
Division Total 1,848,709 1,633,893 1,668,781 34,888 2.14% �J
246 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 194
OPERATIONS 180
SALARIES & BENEFITS Total 80,543 79,522 74,789 (4,733) -5.95% OPERATIONS & MAINTENANCE Total 10,374,268 10,667,430 10,911,662 244,232 2.29% Division Total 10,454,811 10,746,952 10,986,451 239,499 2.23% OPERATIONS - DEPARTnaFnIT OF CONSERVATION GRAD'
OPERATIONS & MAINTENANCE Total 0 4,148 0 (4,148)-100.0% CAPITAL OUTLAY Total 0 23,405 31,516 8,111 34.65%
Division Total 0 27,553 31,516 3,963 14.38%
OPERATIONS - SB 1383 CAL RECYCLE GRANT
OPERATIONS & MAINTENANCE Total 33,140 327,098 250,789 (76,309)-23.33% Division Total 33,140 327,098 250,789 (76,309)-23.33%
TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 196
OPERATIONS 180
SALARIES & BENEFITS Total 12,750 14,601 14,976 375 2.57% OPERATIONS & MAINTENANCE Total 255,195 305,400 303,100 (2,300) -0.75% Division Total 267,945 320,001 318,076 (1,925) -0.6%
TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 195
OPERATIONS 180
OPERATIONS & MAINTENANCE Total 107 5,425 10,434 5,009 92.33% Division Total 107 5,425 10,434 5,009 92.33%
TEMECULA LIBRARY FUND 197
OPERATIONS 180
OPERATIONS & MAINTENANCE Total 214,692 240,949 230,715 (10,234) -4.25% INTERNAL SERVICE FUND ALLOCATIONS Total 388,609 446,566 534,044 87,478 19.59% Division Total 603,301 687,515 764,759 77,244 11.24%

OPERATIONS - MAINTENANCE
SALARIES & BENEFITS Total 226,676 264,954 345,661 80,707 30.46% OPERATIONS & MAINTENANCE Total 314,170 340,959 335,108 (5,851) -1.72% CAPITAL OUTLAY Total 0 41,150 0 (41,150)-100.0%
Division Total 540,846 647,063 680,769 33,706 5.21%
n
L�J
Annual Operating Budget 1 247

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ANALYSIS/COMMENTS
Citywide Operations:

TCSD Operational expenditures reflect an increase of 0.92% due to the calculated cost of living adjustment per the City's labor agreements and full year's salaries for Custodial positions added at Mid -Year, offset by various reductions in Operations & Maintenance line items to meet budget targets.

Service Level B:

Service Level B Expenditures reflect an increase of 9.2% due to the addition of one Signal Technician I, offset by the removal of the Transfer Out of $200,000, as the desired Fund Balance has been met.

Service Level C:

Service Level C expenditures reflect an increase of 2.14% due to reassessment of parcels within the City limits.

Service Level D:

Service Level D expenditures reflect an increase of 1.51% due to increasing waste hauling rates resulting from the contractually obligated consumer price index adjustments to keep pace with inflation, offset by reductions in Operations and Maintenance to meet budget targets.

Service Level L:

Service Level L expenditures reflect a decrease of 0.6 due to a prior year requisition and budget rolled forward into FY24-25.

Service Level R:

Service Level R expenditures reflect a 92.33% increase due to a FY24-25 budget reduction where Emergency Street Maintenance budget was not needed.

Library:

Library expenditures reflect an increase of 8.31% primarily due to a full year's cost of 7 custodial positions added during the FY24-25 Mid -Year Budget update and higher Internal Service Fund Allocations due to increased insurance premiums and technology costs, offset by no Capital Outlay budget for FY25-26. l�J
248 1 Annual Operating Budget

PERSONNEL ALLOCATIONS

PARKS AND RECREATION
Aquatics Coordinator
Aquatics Supervisor I
Aquatics Supervisor II
Assistant Director of Community
Services
Community Services Assistant
Community Services Coordinator I
Community Services Coordinator II
Community Services Manager
Community Services Specialist 1/11
Community Services Superintendent
Community Services Supervisor I
Community Services Supervisor 11
Community Services Supervisor 1/11
Custodian 11
Director of Community Services
Field Supervisor -Code Enforcement
Field Supervisor -Trades
Landscape Inspector II
Lead Maintenance Worker -Electrician
Lead Maintenance Worker -Facilities
Lead Maintenance Worker-HVAC
Maintenance Superintendent
Maintenance Worker I - Facilities
Maintenance Worker II - Facilities
Management Assistant
Multimedia Coordinator
Office Specialist II
Principal Management Analyst
Senior Landscape Inspector
Theater Technical Coordinator I
Theater Technical Coordinator 11
Theater Technical Specialist 11
Total

SERVICE LEVEL L
Maintenance Superintendent
Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

1.00 -
-
-

2.00 -
-
-
-

1.00 1.00
-

1.00 -
-
-

2.00 2.00

3.00 1.00

4.00 3.00

3.00 -

9.00 9.00

8.00 (1.00)
-

1.00 1.00
-

2.00 1.00

1.00 -

4.00 5.00

7.00 2.00

3.00 6.00

6.00 -
-

1.00 -
(1.00)

1.20 1.10

1.10 -

1.00 1.00

1.00 -

0.05 0.05

0.05 -

0.50 0.50

0.10 (0.40)

0.20 0.20

0.20 -

0.10 0.40

0.40 -

0.10 0.10
-
(0.10)

0.50 0.50

0.50 -

0.35 0.30

0.30 -

1.00 0.45

0.45 -

1.50 1.50

1.95 0.45

1.00 1.00

1.00 -

2.00 2.00

2.00 -

1.00 1.00
-
(1.00)

1.00 1.00

1.00 -

0.20 0.20

0.20 -

1.00 1.00

1.00 -

1.00 -
-
-
-

1.00 1.00
-

42.70 1 42.30
1 42.25
1 (0.05)

0.05 1 0.05 1 0.05 1-

0.05 1 0.05 1 0.05 1 -
L_J
Annual Operating Budget 1 249

LIBRARY
Custodian II
Field Supervisor -Trades
Landscape Inspector II
Lead Maintenance Worker -Electrician
Lead Maintenance Worker-HVAC
Maintenance Superintendent
Maintenance Worker I - Facilities
Maintenance Worker II - Facilities
Senior Landscape Inspector
Total
Grand Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
Current
Proposed
Incr/(Decr)
2023-24
2024-25
2025-26
from Prior Yr

0.30 0.30

0.30 -

0.10 0.10

0.10 -

0.10 0.10

0.05 (0.05)

0.15 0.15

0.10 (0.05)

0.15 0.15

0.10 (0.05)

0.10 0.10

0.10 -
-

0.25 0.25
-

0.35 0.35

0.60 0.25

0.10 0.10

0.10 -

1.35 1 1.60
1 1.70
1 0.10

44.10 43.95

44.00 0.05
*This increase reflects a reallocation of 0.05 FTE from the Public Works Department.

L_J
250 1 Annual Operating Budget

S; I I ' 1 r:
y
-•

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Insurance

EXPENDITURES BY CATEGORY
2024-25
2025-26
%
2023-24
Current
Proposed
Increase/
Increase/
Actuals
Budget
Budget
(Decrease)
(Decrease)
INSURANCE FUND 300
NON -DEPARTMENTAL 199
SALARIES & BENEFITS Total 221,774
207,956
273,054
65,097

31.3%
OPERATIONS & MAINTENANCE Total 3,605,342
3,282,213
3,527,263
245,050

7.47%
Division Total 3.827.116

3.490.169

3.800,317
310.148

8.89%

ANALYSIS/COMMENTS
Insurance:

The Insurance accomplishments and objectives are reflected in the Human Resources Department summary, under the Risk Management division.

Insurance expenditures are projected to increase by 8.89% due to higher insurance premiums and legal services, the reallocation of Authorized personnel, and the calculated cost of living adjustment in accordance with the City's labor agreements.

PERSONNEL ALLOCATION

INSURANCE
Director of HR/Risk Management
Management Assistant (Confidential)
Senior Management Analyst
Total
Adopted
Current
Proposed
Incr/(Decr)
2023-24
2024-25
2025-26
from Prior Yr

0.25 0.25

0.25 -

0.30 0.10

0.45 0.35

0.40 0.45

0.45 1 -

0.95 1 0.80
1 1.15

0.35 *This increase reflects a reallocation of 0.35 FTE from the Human Resources Department. 252 1 Annual Operating Budget

Workers' Compensation

EXPENDITURES BY CATEGORY
WORKERS' COMPENSATION FUND 305
NON -DEPARTMENTAL 199
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
Division Total

ANALYSIS/COMMENTS
Workers' Compensation
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
2024-25 2025-26
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
221,773
193,674
273,564
79,890

41.25%
289,371
370,756
383,605
12,849

3.47%
511,143
564,429
657,169
92,739

16.43%
The Workers' Compensation accomplishments and objectives are reflected in the Human Resources Department summary, under the Risk Management division.

Workers' Compensation expenditures are projected to increase by 16.43% due to higher insurance premiums, the reallocation of Authorized personnel, and the calculated cost of living adjustment in accordance with the City's labor agreements.

PERSONNEL ALLOCATION

WORKERS' COMPENSATION
Director of HR/Risk Management
Management Assistant (Confidential)
Senior Management Analyst
Total
Adopted
Current
Proposed
Incr/(Decr)
2023-24
2024-25
2025-26
from Prior Yr

0.25 0.25

0.25 -

0.30 -

0.45 0.45

0.40 1 0.45
1 0.45
1 -

0.95 1 0.70
1 1.15
1 0.45
*This increase reflects a reallocation of 0.45 FTE from the Human Resources Department.

Annual Operating Budget 1 253

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Vehicles and Equipment

EXPENDITURES BY CATEGORY
2024-25
2025-26
2023-24
Current
Proposed
Increase/
Increase/
Actuals
Budget
Budget
(Decrease)
(Decrease)
VEHICLES AND EQUIPMENT FUND 310
NON -DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total
429,526
0 429,527
429,527
100.0%
CAPITAL OUTLAY Total
1,408
279,050
370,000
90,950

32.59%
Division Total
430,934
279,050
799,527
520,477
186.52%

ANALYSIS/COMMENTS
Vehicles and Equipment:

Vehicles and Equipment expenditures include the replacement of several vehicles and heavy equipment, all of which have reached the end of their useful lives. A list of the replacement items can be found in the list of Consolidated Capital Outlay, located in Appendix B.
254 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Information Technology

DEPARTMENT OVERVIEW

MISSION
Information Technology and Support Services (ITSS) is charged with providing the highest quality of leadership, support, and essential services to the organization's operating departments to maintain service levels necessary to efficiently and effectively meet all departmental program requirements at the Civic Center and off -site facilities.

These services include Geographic Information Systems (GIS), Enterprise Applications, Media Services, Network Infrastructure, Tech Support, and Support Services. ITSS oversees 500+ electronic devices, network infrastructure, and 500+ user accounts at the Civic Center and 20+ offsite facilities Citywide. There are currently over 35 business application systems administered and supported by staff. In addition, Media Services oversees social media and E- Government services, and produces original video content for direct communications with residents.

SERVICES
Information Technology and Support Services
• Provide maintenance and IT support to City staff, its facilities, and the public on all network functions, which support the City's website, security systems, communications, databases, and applications. • Provide technical support, manage applications, and assess needs to assist in business process analysis. • Provide public and staff access to the City's online application for generating maps and conducting geographic analysis.
• Maintain and support the City's website and utilize social media and E-Government services to provide official information to the public.
• Provide technical support for City emergency operations and emergency communications.

Support Services
• Provide consistent, resourceful, and efficient customer service to the public by professionally handling phone calls and/or by servicing the needs of the visiting public. • Provide central printing services for Citywide departments and off -site facilities, mailroom services, and auxiliary services (laminating, folder/inserter, wide -format printing, binding). • Manage the Canon copier lease/maintenance/replacement for the Civic Center and off -site facilities, including the Library.

Z 46wt n�
I
n
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget 1 255

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Information Technology include:

Information Technology and Support Services
• Ensured City residents had access to secure, reliable, state-of-the-art technology at the Ronald H. Roberts Temecula Public Library through the replacement of audiovisual equipment in the conference center. (Accountable & Responsive City Government)
• Delivered enhanced reliability of City systems through the lifecycle replacement of the Security System Storage Area Network. (Safe & Prepared Community)
• Ensured staff efficiency with improvements to the stability, security, and speed of remote access through software and hardware improvements to the City's virtual infrastructure. (Accountable & Responsive City Government)
• Offered improved resilience of City's operations through the planning and implementation of disaster recovery and business continuity. (Accountable & Responsive City Government) • Enabled maximum staff productivity and security by ensuring that applications are kept current, and that infrastructure is patched appropriately. (Accountable & Responsive City Government) Support Services
• Offered increased reliability and improved staff efficiency through the lifecycle replacement of the paper folder/inserter. (Accountable & Responsive City Government) • Coordinated print services for all public and staff copy machines throughout the Civic Center and all off -site facilities. (Accountable & Responsive City Government)
• Provided mail room, copy -center, and related services (large format printing, laminating, folding/inserting, binding, etc.) for all City departments and off -site facilities. (Accountable & Responsive City Government) n
Organizational Chart Expenditures by Category Personnel Performance Measures 256 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from Information Technology include:

Information Technology and Support Services
• Offer improved efficiency for staff, residents, and vendors, through the implementation and use of software designed to manage contracts and allow for digital signatures. (Accountable & Responsive City Government) • Enrich and enhance the experience enjoyed by residents and visitors to the Ronald Reagan Sports Park through the lifecycle replacement of the amphitheater audio system. (Accountable & Responsive City Government) • Improve the resilience and reliability of the City network through the testing of disaster recovery and other City security systems. (Accountable & Responsive City Government) • Expand service offerings including Wi-Fi, audiovisual equipment, and security systems, to the residents of Temecula at the renovated Harveston Park Community Center. (Accountable & Responsive City Government) • Deliver efficient and effective communication with the residents through production and sharing of videos of public meetings, special events, and announcements. (Accountable & Responsive City Government) Support Services
• Offer increased reliability and improved staff efficiency through the life cycle replacement of City copiers. (Accountable & Responsive City Government)
• Coordinate managed print services for all public and staff copy machines throughout the Civic Center and all off -site facilities. (Accountable & Responsive City Government) • Provide mail room, copy -center, and related services (large format printing, laminating, folding/inserting, binding, etc.) for Citywide departments and off -site facilities. (Accountable & Responsive City Government) W
AN
L n�
II n
Organizational Chart Expenditures by Category Personnel Performance Measures Annual Operating Budget I 257

It
Michael Heslin
Director of Information Technology
and Support Services
Enterprise
Geographic
Support
Media Services
Application
Information
Services
Tech Support
Infrastructure
Services (EAS)
Systems (GIS)
Website &
Social
Workflow
Analysis &
Copy Center
Help Desk
Network
Networking
Development
Mapping
Administration
Television
Station
Database
GIS Application
Mailroom
Computer
System
Management
Administration
Development
Services
Support
Administration
Media
Services
Application
Training &
Copier &
Printer
Inventory
Telecom
Support
Support
Support
Management
Management
Audio Visual
Report
Data Collection
Civic Center
Reception
Public Safety
Security
Production
Development
& Maintenance
Services
Support
Systems
Graphic Design
End User
Database
Print Services
Library
Technology
Security
Training
Administration
Support
Cameras
Aerial Video &
Mobile Device
Web & Spatial
Shipping &
Asset Life
Cycle
Cybersecurity
Photography
Management
Data Services
Receiving
Management
c

City of Temecula
Fiscal Year 2025-26
l Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25 2025-26 %
2023-24 Current Proposed Increase/ Increase/
Actuals Budget Budget (Decrease) (Decrease)
INFORMATION TECHNOLOGY FUND 320
NON -DEPARTMENTAL 199
SALARIES & BENEFITS Total 2,238,957 2,427,290 2,563,239 135,949 5.6% OPERATIONS & MAINTENANCE Total 3,014,148 3,378,722 3,695,750 317,028 9.38% INTERNAL SERVICE FUND ALLOCATIONS Total 2,660 2,660 0 (2,660)-100.0% CAPITAL OUTLAY Total (475,258) 0 0 0 0.0%
TRANSFERS Total 0 1,748,615 0 (1,748,615)-100.0%
Division Total 4,780,507 7,557,288 6,258,989 (1,298,299)-17.18% GIS-GEOGRAPHIC INFORMATION TECHNOLOGY 610
SALARIES & BENEFITS Total 421,587 455,350 473,880 18,530 4.07% OPERATIONS & MAINTENANCE Total 92,963 106,375 108,875 2,500 2.35% Division Total 514,549 561,725 582,755 21,030 3.74%
LIBRARY -INFORMATION TECHNOLOGY 620
SALARIES & BENEFITS Total 221,750 243,822 275,837 32,016 13.13% OPERATIONS & MAINTENANCE Total 77,479 110,700 110,200 (500) -0.45% Division Total 299,229 354,522 386,037 31,516 8.89%
TECHNOLOGY REPLACEMENT FUND 325
NON -DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 151,157 0 151,158 151,158 100.0% CAPITAL OUTLAY Total 0 496,071 365,000 (131,071)-26.42% TRANSFERS Total 62,028 701,506 0 (701,506)-100.0%
Division Total 213,186 1,197,577 516,158 (681,419) -56.9% SUPPORT SERVICES FUND 330
NON -DEPARTMENTAL 199
SALARIES & BENEFITS Total 248,422 273,894 253,827 (20,067) -7.33% OPERATIONS & MAINTENANCE Total 107,387 134,000 134,000 0 0.0% Division Total 355,810 407,894 387,827 (20,067) -4.92%
SUPPORT SERVICES REPLACEMENT FUND 335
NON -DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 42,394 0 42,200 42,200 100.0% CAPITAL OUTLAY Total 0 13,600 30,000 16,400 120.59%
Division Total 42,394 13,600 72,200 58,600 430.88%
PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 125
NON -DEPARTMENTAL 199
CAPITAL OUTLAY Total 37,686 175,000 25,000 (150,000)-85.71% Division Total 37,686 175,000 25,000 (150,000)-85.71%
L_J
Annual Operating Budget 1 259

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

ANALYSIS/COMMENTS
Information Technology:

Information Technology expenses reflect a decrease of 17.18% primarily due to the one-time transfer of accumulated Fund Balance in FY24-25. Expenditures reflect the cost of living adjustment per the City's labor agreements, higher costs of software maintenance and added budget for depreciation costs.

Technology Replacement:

Technology Replacement Capital Outlay expenditures total $365,000 to replace network switches ($75,000), the City's phone system ($75,000), audio equipment at the Community Recreation Center amphitheater ($90,000) and to fund the annual computer lifecycle replacement program ($125,000). Operations & Maintenance expenditures reflect budget added to FY25-26 for depreciation costs.

Support Services:

Support Services expenses reflect a decrease of $4.92% due to the reallocation of staff from this department to Information Technology.

Support Services Replacement:

Support Services Replacement expenses total $30,000 to replace City copiers approaching the end of their useful life ($30,000).

Public Education & Government:

PEG expenses total $25,000 for the replacement of audiovisual production equipment ($25,000).

L_J
260 1 Annual Operating Budget

PERSONNEL ALLOCATIONS

INFORMATION TECHNOLOGY
Assistant Director of IT/SS
Director of Information Technology
Information Technology Manager
Information Technology Specialist I
Information Technology Specialist II
Information Technology Supervisor
Information Technology Technician 1/II
Management Analyst
Senior Administrative Assistant
Senior Information Technology Specialist
Support Services Supervisor
Total

SUPPORT SERVICES
Information Technology Technician 1/II
Office Specialist - AM
Office Specialist - PM
Support Services Supervisor
Total
Grand Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

1.00 1.00

1.00 -

1.00 1.00

1.00 -

1.00 1.00

1.00 -

1.00 1.00

2.00 1.00

1.00 1.00
-
(1.00)

5.00 5.00

5.00 -

1.00 0.50

1.00 1.00

1.00 -

1.00 1.00

1.00 -

2.00 2.00

2.00 -

0.10 0.10

0.10 -

15.10 1 14.60
1 15.10
1 0.50
-

0.50 -
(0.50)

0.60 0.60

0.60 -

0.60 0.60

0.60 -

0.90 0.90

0.90 -

2.10 1 2.60
1 2.10
1 (0.50)

17.20 17.20
1 17.20
-
Annual Operating Budget 1 261

Facilities

EXPENDITURES BY CATEGORY
FACILITIES FUND 340
NON -DEPARTMENTAL 199
SALARIES & BENEFITS Total
OPERATIONS & MAINTENANCE Total
TRANSFERS Total
Division Total
FACILITY REPLACEMENT FUND 350
NON-DEPARTMENTAi
OPERATIONS & MAINTENANCE Total
CAPITAL OUTLAY Total
TRANSFERS Total
Division Total

11.44%
1,117,389
1,087,752
954,260
(133,492)
-12.27%
0 606,326
0 (606,326)
-100.0%
1,668,915
2,314,743
1,645,947
(668,796)
-28.89%
87,338
0 87,338
87,338
100.0%
3,074
82,276
0 (82,276)
-100.0%
604,731
2,722,395
1,000,000
(1,722,395)
-63.27%
695,143
2,804,671
1,087,338
(1,717,333)
-61.23%
Facilities:

Facilities departmental expenditures are projected to net decrease by 46.6% over the prior year due to custodial contract savings and reductions to meet budget targets. The added budget for depreciation in Fund 350 is offset by the year -over -year reduction in Capital Outlay purchases.

Fund 340 transfers for FY24-25 reflect a one-time transfer of accumulated Fund Balance to the Facility Replacement Fund.

Fund 350 transfers reflect the transfer of funding to the Capital Improvement Program Fund for the City Facilities Rehabilitation project.

LJ
262 1 Annual Operating Budget

PERSONNEL ALLOCATIONS

FACILITIES
Asst. Director of Public Works
Custodian II
Director of Public Works
Field Supervisor -Trades
Lead Maintenance Worker -Electrician
Lead Maintenance Worker -Facilities
Lead Maintenance Worker-HVAC
Maintenance Superintendent
Maintenance Worker I - Facilities
Maintenance Worker 11 - Facilities
Management Analyst
Management Assistant
Principal Management Analyst
Total
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
Adopted
2023-24
Current
2024-25
Proposed
2025-26
Incr/(Decr)
from Prior Yr

0.10 -
-
-

0.40 0.40

0.40 -

0.10 0.10

0.10 -

0.25 0.25

0.80 0.55

0.30 0.30

0.30 -

0.80 0.80
-
(0.80)

0.35 0.35

0.35 -

0.50 0.50

0.50 -
-

0.30 0.30
-

0.15 0.15

0.45 0.30
-
-

0.20 0.20

0.20 0.20
-
(0.20)

0.05 0.05
-
(0.05)

3.20 1 3.40
1 3.40
1-
�c
Annual Operating Budget 1 263

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
264 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

CAPITAL IMPROVEMENT PROGRAM SUMMARY
The City prepares a separate Capital Improvement Program Budget document, which serves as a five-year planning tool to program the financing and scheduling of major projects undertaken by the City. The CIP Budget is prepared in accordance with generally accepted accounting principles. Within this section of the Annual Operating Budget, summary schedules from the Capital Improvement Program Budget are included. To access the individual Project Budget Sheets, please refer to the Fiscal Years 2026-30 Capital Improvement Program Budget.

The CIP Budget includes the City's major projects, which exceed $30,000 in cost, have long-term life spans, and are generally non -recurring. These projects include land and right-of-way acquisition, design, construction or rehabilitation of public buildings or facilities, public infrastructure design and construction, park design and construction, and affordable housing projects.

The City's goal in providing a CIP Budget is to develop a multi -year plan for capital improvements, update it annually, and follow through with all projects in accordance with the plan. In determining the relative merit of a proposed project, key management team members evaluate projects for feasibility, community enhancement, infrastructure and historic preservation, and safety.

PLAN DEVELOPMENT
A component of the CIP includes the integration of the budget with the Quality -of -Life Master Plan (QLMP). The QLMP provides the framework for the City's strategic budgeting activities. The City Council has set priorities and guided staff in developing seven Core Values upon which to focus time and resources (as identified in the QLMP).

These areas include:

1. Safe & Prepared City

2. Transportation Mobility & Connectivity

3. Healthy & Livable City

4. Economic Prosperity �M

5. Sustainable & Resilient City,

6. Accountable & Responsive City Government +q'T£g e�

7. Equity
All projects presented in the CIP are carefully programmed in concurrence with the City's QLMP to ensure the community's capital improvement needs are met both now and in the future. The framework for the CIP is further defined in the City's CIP fiscal policy to provide a structure within which fiscal decisions can be made and to optimize all available resources toward the accomplishment of the City's Core Values as defined in the QLMP.

This CIP budget document was developed by incorporating input from key management team members based on community comments and feedback received throughout the year. Through several workshops, the team then identified and evaluated community needs in the areas of roads/streets, bridges, public buildings, parks and recreation facilities. Each proposed project was reviewed and discussed to ensure funding, timing, and necessity.

All projects are evaluated by the City's Planning Commission to ensure consistency with the provisions of the City of Temecula General Plan, while considering the City's long-term vision as developed by the City Council. The proposed circulation, infrastructure, and parks and recreation projects are reviewed and approved by the Planning Commission, Traffic Safety Commission, and the Parks and Recreation Commission.

Annual Operating Budget 1 265

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

CAPITAL IMPROVEMENT PROGRAM SUMMARY
Projects have been scheduled in each of the five fiscal years based on community needs, as determined by the City Council and availability of funding. Priority rankings in each major category of Circulation, Infrastructure, Parks and Recreation, Housing, and Community Facilities Districts (CFD) Funded Projects have been assigned in accordance with the priority guidelines as follows:

LEVEL I: The project is urgent and must be completed as soon as feasible. Failure to address the project may impact the health, safety, or welfare of the community or have a potential significant impact on the financial well-being of the City. The project must be initiated, or financial opportunity losses may result.

LEVEL II: The project is important and addressing it is necessary. The project impacts safety, law enforcement, health, welfare, economic base, quality of life, and has been identified as a priority in the Quality -of -Life Master Plan.

LEVEL III: The project will enhance quality of life and will provide a benefit to the community.

Completion of the project will improve the community by providing cultural, recreational, and/or aesthetic value, or is deemed as a necessary improvement to a public facility.

FUTURE YEARS The project will be an improvement to the community but does not necessarily need to be PROJECTS: completed within a five-year capital improvement program time frame.

FISCAL YEARS 2026-30 CAPITAL IMPROVEMENT PROGRAM SUMMARY The CIP includes a total of $894,070,582 in identified capital projects, with a total of $624,379,144 in project funding, representing 70% of all Project Costs. There is $269,691,438 in "Unspecified" project funding, indicating that a revenue source has not yet been secured for these projects, which have been identified as necessary infrastructure for the City, and will require that funding be secured before the project construction can commence.

Capital projects are categorized into five Project Types, as noted in the table below.

Project
Type
Number of
Projects
Total Project
Cost
Circulation
24 632,429,570
Housing
4 20F4010,000
1 nfrastru ctu re
49 117,740,242
Parks/ Re c
18 59,908,080
M-Funded
2 63,5910,689
894,070,582
266 1 Annual Operating Budget

City of Temecula
Fiscal Year 2025-26
Annual Operating Budget

CAPITAL IMPROVEMENT PROGRAM SUMMARY
Various sources contribute to the funding of the Capital Improvement Program, including many City Funds, State
and Federal Grants, Community Facility District Funds,
Successor Agency Funds, and Transportation Uniform
Mitigation Fee (TUMF) Funds. The City seeks all available funding sources for projects, including federal, state, and local grants, outside contributions and City funds. Total funding for the Fiscal Years 2026-30 CIP program reflects 61% from outside funding sources, with the remaining
39% provided by various City funds, including Measure S, Measure A, Development Impact Fee Funds, General
Fund, Capital Financing, and several other sources.

Capital Proiect Funding Sources
TUNIF,
54,1b1,598, 9%
State/Local Grants, City Funds ,
244,469,320,
74,448,743, 1396 /
Successor
Agency, .;
750,000,0% .

Reimbursements,
40,952,252, 6%
Federal Grants,
96,030,114. IS%
Development Cammunity
1 mpact Fees, Fac i 1ty Districts,
53,591,56119% 54,975,557. 9%
Only one new project has been added to the CIP, the Local Roadway Safety Plan Update ($155,000) which is designed to bring the Plan in line with federal safety requirements.

Temecula City CouncilMay 22, 2025

Temecula City Council
May 22, 2025