Temecula City Council
May 21, 2026

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
76 | Annual Operating Budget

MAJOR REVENUE SOURCES
Licenses, Permits and Service Charges – 20% 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 2026-27 Licenses, Permits and Service Charges revenue is projected to be $51,089,624. 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 ($169,442); Property Tax in Lieu of Vehicle License Fees ($12,188,015); Public Safety, Recycling, and Community Development Block Grants ($1,436,141); and Measure A transportation revenue ($4,280,000). The estimated intergovernmental revenue is projected to be $18,323,598.

Operating Transfers – 19% of Total Revenue
This category consists of operating transfers between funds. The estimated operating transfers for Fiscal Year 2026- 27 totals $48,735,917. Significant transfers from the Measure S Fund include $16,450,824 to TCSD Operations and Library and $23,872,579 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 $2,500,000 to supplement the existing balances in these replacement funds, and $1,000,000 to the Street Maintenance Fund. Other significant transfers include monies from the Gas Tax Fund to the General Fund in the amount of $3,329,012. 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 $283,502 is transferred to the General Fund to support law enforcement expenditures. A $1,000,000 transfer from the General Fund to the Fire Facility Acquisition Fund is also reflected to account for the repayment of an advance from the Fire Facility Acquisition Fund for the acceleration of the City’s pay down of the unfunded pension liability.

Total Revenue Sources for Fiscal Year 2026-27, excluding Interfund Transfers, are projected to be $207,913,127 across all funds.
297

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 77
General Fund
298

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
78 | 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 38% 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 1.9% over the prior year as the local economy is expected to continue to grow at a modest pace.

Property Taxes are the second largest source of revenue for the General Fund and comprise 10% 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 4.3% over the prior fiscal year to $12,907,422. This growth is based on an anticipated increase in assessed valuation of property within the City.

Operating Transfers In from Measure S comprise 19% 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 $23,872,579 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 3.5% over the prior fiscal year to $12,373,457. This change is based on an anticipated increase in assessed valuation of property within the City of Temecula. 299

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 79

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 1.9% over the prior year to $7,175,280, reflecting continued development activity within the City.

Franchise Fees comprise 3% 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 remain flat from the prior year at $4,100,000.

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 3% of General Fund Revenues. TOT revenue is projected to decrease 2.0% to $3,841,603, consistent with softening hospitality market conditions.

Operating Transfers In comprise 3% of total General Fund revenues. This category includes the operating transfer of Gas Tax revenue ($3,329,012) and grant funds from the Supplemental Law Enforcement Services Fund ($283,502).

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

0.5% over the prior year to $2,110,500, 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 streetlights and traffic signals. 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.
300

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
80 | Annual Operating Budget
General Fund – Revenue by Source

REVENUE BY SOURCE
001 - GENERAL FUND
Description
2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
% Increase/
Decrease
Taxes and Franchises
PROPERTY TAX 11,579,752 12,375,529 12,907,422 531,894 4.3% SALES TAX 47,504,820 49,182,480 50,186,189 1,003,709 2.0% SALES TAX SHARING AGREEMENT (1,649,137)(1,760,000)(1,865,655)(105,655)-6.0% FRANCHISE FEES 4,190,577 4,100,000 4,100,000 -0.0%
TRANSIENT OCCUPANCY TAX 4,355,559 3,920,003 3,841,603 (78,400)-2.0% SPECIAL TAX (MEASURE C)1,894,830 2,100,000 2,110,500 10,500 0.5% Licenses, Permits and Service Charges
LAND DEVELOPMENT 1,294,871 2,290,812 2,185,627 (105,185)-4.6% POLICE 104,781 103,485 76,652 (26,833)-25.9%
DEVELOPMENT FEES 67,124 274,658 203,390 (71,268)-25.9%
BUSINESS LICENSES 276,631 286,526 292,257 5,731 2.0%
BUILDING 2,368,922 2,319,845 2,805,612 485,767 20.9%
PLANNING 443,955 678,054 635,515 (42,539)-6.3%
FIRE 1,171,051 1,183,792 1,048,394 (135,398)-11.4%
CHARGES FOR SERVICES 1,962 1,200 950 (250)-20.8%
Fines and Forfeitures
FINES & FORFEITURES 408,449 424,159 467,627 43,468 10.2% Use of Money and Property
LEASE/RENTAL INCOME 260,600 266,548 266,631 83 0.0%
OTHER 327,033 126,000 78,082 (47,918)-38.0%
INVESTMENT INTEREST 2,454,881 1,757,567 1,757,567 -0.0% Intergovernmental Revenues
PROPERTY TAX IN LIEU OF VLF 11,099,170 11,754,429 12,188,015 433,586 3.7% VEHICLE LICENSE FEES 173,014 167,764 169,442 1,678 1.0% GRANTS 198,002 78,032 16,000 (62,032)-79.5%
Reimbursements
CAPITAL IMPROVEMENT PROGRAM 3,038,031 3,098,127 2,790,884 (307,243)-9.9% PECHANGA IGA 410,208 2,273,557 1,396,498 (877,059)-38.6% OTHER REIMBURSEMENTS 1,254,280 1,592,629 1,591,397 (1,232)-0.1% Operating Transfers In
OPERATING TRANSFERS IN 8,619,524 14,562,429 3,612,514 (10,949,915)-75.2% CONTRIBUTION FROM MEASURE S 5,995,925 6,496,605 23,872,579 17,375,974 267.5% Miscellaneous
MISCELLANEOUS 70,541 51,784 49,599 (2,185)-4.2%
Total Revenues and Other Sources 107,915,357 119,706,013 126,785,290 7,079,277 5.9% 301

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 81
General Fund – Revenue Detail

REVENUE DETAIL
001 - GENERAL FUND
Fund
001 Description 2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
% Increase/
Decrease
161 - PLANNING 504,010 912,704 798,358 (114,346)-12.5%
162 - BUILDING & SAFETY 2,261,758 2,214,845 2,708,712 493,867 22.3% 163 - LAND DEVELOPMENT 1,294,871 2,290,914 2,185,731 (105,183)-4.6% 164 - PUBLIC WORKS 700 24,600 24,837 237 1.0%
167 - PARKS MAINTENANCE 1,990,134 2,196,082 2,210,042 13,960 0.6% 170 - SHERIFF'S OFFICE 527,728 553,970 505,307 (48,663)-8.8% 171 - FIRE 1,346,665 1,340,804 1,175,574 (165,230)-12.3% 199 - NON-DEPARTMENTAL
4008 RESIDUAL RPTTF DISTRIBUTION 279,534 280,000 291,200 11,200 4.0% 4010 PROPERTY TAX - SECURED 9,636,401 10,563,581 11,022,785 459,204 4.3% 4012 PROPERTY TAX - UNSECURED 503,306 536,966 558,444 21,479 4.0% 4013 SUPPLEMENTAL TAX - AB 2345 335,698 274,482 285,461 10,979 4.0% 4016 PROPERTY TRANSFER TAX 758,140 650,000 676,000 26,000 4.0% 4018 FRANCHISE FEES 4,190,577 4,100,000 4,100,000 -0.0% 4020 TRANSIENT OCCUPANCY TAX 4,355,559 3,920,003 3,841,603 (78,400)-2.0% 4024 SALES & USE TAX - STATE 47,504,820 49,182,480 50,186,189 1,003,709 2.0% 4025 GRANTS 125,321 40,000 -(40,000)-100.0%
4026 SALES TAX SHARING AGREEMENT (1,649,137)(1,760,000)(1,865,655)(105,655)-6.0% 4028 HOMEOWNER PROPERTY TAX RELIEF 66,673 70,500 73,532 3,032 4.3% 4043 PROPERTY TAX IN LIEU OF VLF 11,099,170 11,754,429 12,188,015 433,586 3.7% 4046 MOTOR VEHICLE IN LIEU-STATE 173,014 167,764 169,442 1,678 1.0% 4047 VEHICLE CODE FINES 174,513 190,000 236,013 46,013 24.2% 4056 BUSINESS LICENSE 276,631 286,526 292,257 5,731 2.0% 4057 PASSPORT PROCESSING 22,650 20,000 20,000 -0.0%
4060 MISCELLANEOUS NON-TAXABLE 113,356 76,000 28,082 (47,918)-63.1% 4061 RETURNED CHECK FEE 120 ---0.0%
4062 RECOVERY OF PRIOR YEAR EXPENSE 11,952 3,599 3,599 -0.0% 4064 RIGHT OF WAY ADVERTISING -2,185 -(2,185)-100.0%
4065 INVESTMENT INTEREST 2,095,753 1,757,567 1,757,567 -0.0% 4070 CASH OVER & SHORT (606)---0.0%
4075 RENTAL INCOME 86,004 170,000 86,864 (83,136)-48.9% 4076 REIMBURSEMENTS 206,098 80,000 81,600 1,600 2.0%
4078 REIMBURSEMENT-PECHANGA IGA 410,208 2,273,557 1,396,498 (877,059)-38.6% 4084 REIMBURSEMENTS FROM CIP 3,038,031 3,098,127 2,790,884 (307,243)-9.9% 4091 CONTRIBUTIONS 141,587 ---0.0%
4094 LEASE INCOME 82,017 8,281 78,459 70,178 847.5%
4162 ELECTRIC VEHICLE CHARGING FEES 35,318 26,000 26,000 -0.0% 4168 INTEREST INCOME - LEASES 7,392 -7,576 7,576 100.0% 4177 MSHCP ADMIN FEE 1,962 1,200 950 (250)-20.8%
4181 REIMBURSEMENT SERVICES CFD 746,925 1,108,314 1,203,932 95,618 8.6% 4182 FIA - SERVICES 7,969 58,434 58,434 -0.0%
4300 STATE MANDATED COST 133,155 127,466 50,000 (77,466)-60.8% 4545 GASB 31 - FMV ON INVESTMENTS 359,735 ---0.0%
4550 GAIN ON DISPOSAL OF ASSETS 15,775 15,000 15,000 -0.0% 4858 OTHER FINANCING SOURCE - SBITA 138,633 ---0.0%
302

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
82 | Annual Operating Budget

REVENUE DETAIL
001 - GENERAL FUND
Fund
001 Description 2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
% Increase/
Decrease
4941 AB1379 COLLECTION STATE $4 FEE 31,374 30,600 30,906 306 1.0% 6002 TRANSFER IN FROM MEASURE S FUND 5,995,925 6,496,605 23,872,579 17,375,974 267.5% 6006 TRANSFER IN FROM FIRE FACILITY
ACQUISITION FUND -5,000,000 -(5,000,000)-100.0%
6100 TRANSFER IN FROM GAS TAX FUND 3,142,939 3,269,427 3,329,012 59,585 1.8% 6110 TRANSFER IN FROM CRP FUND -1,000,000 -(1,000,000)-100.0% 6160 TRANSFER IN FROM SUPPLEMENTAL LAW
ENFORCEMENT SERVICES FUND 334,997 283,502 283,502 -0.0% 6275 TRANSFER IN FROM CFD 03-3 WOLF CREEK
FUND -500 -(500)-100.0%
6277 TRANSFER IN FROM CFD 03-02 RORIPAUGH
RANCH FUND -4,000 -(4,000)-100.0%
6701 TRANSFER IN FROM PENSION RATE
STABILIZATION FUND 5,000,000 5,005,000 -(5,005,000)-100.0% TOTAL GENERAL FUND 107,915,357 119,706,013 126,785,290 7,079,277 5.9% 303

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 83
General Fund – Fund Summaries
001 - GENERAL FUND SUMMARY
Description
2024-25
Actuals
2025-26
Current Budget
2026-27
Proposed Budget
Increase/
(Decrease)
% Increase/
(Decrease)
Revenues by Category
Taxes and Franchises 67,876,402 69,918,012 71,280,059 1,362,048 1.95% Licenses, Permits and Service Charges 5,729,298 7,138,372 7,248,397 110,025 1.54% Fines and Forfeitures 408,449 424,159 467,627 43,468 10.25% Use of Money and Property 3,042,515 2,150,115 2,102,279 (47,836) -2.22% Intergovernmental Revenues 11,470,185 12,000,225 12,373,457 373,232 3.11% Reimbursements 4,702,519 6,964,313 5,778,779 (1,185,534) -17.02% Operating Transfers In 14,615,449 21,059,034 27,485,093 6,426,059 30.51% Miscellaneous 70,541 51,784 49,599 (2,185) -4.22%
Total Operating Revenues 107,915,357 119,706,013 126,785,290 7,079,277 5.91% Expenditures by Department
City Council 663,370 754,919 736,167 (18,753) -2.48%
Community Support 125,000 115,000 190,000 75,000 65.22% City Manager 2,586,337 2,908,135 2,665,325 (242,811) -8.35% Economic Development 1,910,221 1,956,792 1,867,085 (89,707) -4.58% Emergency Management 654,709 763,398 924,359 160,961 21.08% City Clerk 1,764,400 1,607,220 1,722,556 115,336 7.18%
City Attorney 887,250 815,000 950,000 135,000 16.56%
Finance 4,078,830 4,511,190 4,422,108 (89,082) -1.97%
Human Resources 2,227,352 2,931,465 2,722,071 (209,393) -7.14% Planning 3,175,766 3,875,129 3,512,542 (362,587) -9.36% Building & Safety 4,630,845 5,140,206 5,492,263 352,057 6.85% Land Development 2,122,077 2,264,555 2,706,720 442,165 19.53% Public Works 7,616,645 8,836,074 8,952,245 116,171 1.31% Cip Public Works 3,246,939 3,442,362 2,967,104 (475,258) -13.81% Parks Maintenance 6,139,542 6,489,790 6,558,739 68,949 1.06% Sheriff’s Office 42,927,265 47,597,381 51,423,077 3,825,696 8.04% Fire 8,383,535 12,671,544 13,649,632 978,088 7.72%
Animal Control 410,427 520,815 463,524 (57,291) -11.0%
Non Departmental:

P.E.R.S. Retirement 0 (3,477,724) 0 3,477,724 -100.0%
Property Tax Admin Fees 60,344 93,600 75,000 (18,600) -19.87% Other Outside Services 4,923 0 0 0 0.0%
Staffing Continuity Reserve 0 442,100 400,000 (42,100) -9.52% PERS Replacement Benefit 87,817 91,800 93,636 1,836 2.0% Retiree Medical Contribution 1,172,649 0 0 0 0.0%
Capital Outlay - SBITA
138,633 0 0 0 0.0%
Unfunded Accrued Liability Contribution 7,913,492 22,267,833 9,349,256 (12,918,577) -58.01% Total Operating Expenditures 102,928,369 126,618,583 121,843,408 (4,775,175) -3.77% Excess of Revenues Over (Under)
Expenditures 4,986,988 (6,912,570) 4,941,883 11,854,452 -171.49% 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. 304

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
84 | Annual Operating Budget
001 - GENERAL FUND SUMMARY
Description
2024-25
Actuals
2025-26
Current Budget
2026-27
Proposed Budget
Increase/
(Decrease)
%Increase/
(Decrease)
Excess of Revenues Over (Under)
Expenditures 4,986,988 (6,912,570) 4,941,883 11,854,452 -171.49% Operating Transfers Out / One-Time
Payments
Transfer Out to Fire Facility Acquisition Fund 0 2,000,000 1,000,000 (1,000,000) -50.0% Transfer Out to CRP Fund 0 80,000 0 (80,000) -100.0%
Transfer Out to CIP Fund 32,219 1,953,134 0 (1,953,134) -100.0% Transfer Out to Insurance Fund 1,172,672 0 0 0 0.0%
Transfer Out to Workers Comp Fund 436,678 0 0 0 0.0%
Transfer Out to PARS 0 0 7,500,000 7,500,000 100.0%
Total Transfers Out/One-Time Payments 1,641,569 4,033,134 8,500,000 4,466,866 110.75% Fund Balance, Beginning of Year 40,909,314 44,254,734 33,309,030 (10,945,704) -24.73% Fund Balance, End of Year 44,254,734 33,309,030 29,750,913 (3,558,117) -10.68% Detail of Fund Balance
Committed To:

Economic Uncertainty Reserve (20%) 19,002,975 20,870,150 22,498,831 (1,628,681) 7.8% Secondary Reserve (5%) 4,750,744 5,217,538 5,624,708 (407,170) 7.8% Pechanga IGA 449,171 446,498 477,755 (31,257) 7.0%
Assigned To:

Capital Projects 1,953,134 0 0 0 0.0%
Unassigned:18,098,710 6,774,844 1,149,619 5,625,225 -83.03% 44,254,734 33,309,030 29,750,913 (3,558,117) -10.68%
305

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 85
002 - MEASURE S FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Taxes and Franchises
TRANSACTIONS AND USE TAX 37,475,912 37,621,488 38,980,154 1,358,666 3.6% Use of Money and Property
INVESTMENT INTEREST 2,397,423 1,728,370 1,728,370 -0.0% Revenues/Other Sources 39,873,335 39,349,858 40,708,524 1,358,666 3.5% Expenditures by Category
TRANSFERS 38,385,429 57,373,912 48,419,650 (8,954,262)-15.6% Expenditures/Other Financing Uses 38,385,429 57,373,912 48,419,650 (8,954,262)-15.6% Net Revenues 1,487,906 (18,024,054)(7,711,126)10,312,928 -7.9% Fund Balance, Beginning of Year 50,449,274 51,937,180 33,913,126 (18,024,054)-34.7% Fund Balance, End of Year 51,937,180 33,913,126 26,202,000 (7,711,126)-22.7% 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 3.5% due to anticipated local economic growth in Transactions and Use Tax receipts (+3.6%) and flat investment interest earnings. Expenditures are decreasing 15.6% from the prior year due to a decrease in transfer obligations of $9.0 million.

Overall, expenditures are in line with the Council's Appropriation Guidelines for Measure S and reflect transfers to fund Public Safety ($24.1 million), Asset Management ($3.5 million), Capital Improvements ($4.3M), and General/Community Services ($16.5 million). The Measure S ending fund balance is projected at $26.2 million, a decrease of 22.7% from the prior year. 306

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
86 | Annual Operating Budget
006 - FIRE FACILITY ACQUISITION FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 252,851 173,287 173,287 -0.0%
Operating Transfers In
OPERATING TRANSFERS IN -2,000,000 1,000,000 (1,000,000)-50.0% Revenues/Other Sources 252,851 2,173,287 1,173,287 (1,000,000)-46.0% Expenditures by Category
TRANSFERS -5,000,000 -(5,000,000)-100.0%
Expenditures/Other Financing Uses -5,000,000 -(5,000,000)-100.0% Net Revenues 252,851 (2,826,713)1,173,287 4,000,000 -83.6% Fund Balance, Beginning of Year 4,701,785 4,954,636 2,127,923 (2,826,713)-57.1% Fund Balance, End of Year 4,954,636 2,127,923 3,301,210 1,173,287 55.1% 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 projected to decrease 46.0% due to a $1.0 million reduction in Operating Transfers In from the General Fund. Investment interest earnings are held flat at $173,287. The Operating Transfer In comes from available General Funds and represents a $1M repayment of the $5.0 million advance to the General Fund approved by Council in FY 2025-26 to expedite the paydown of the City's unfunded pension liability.

The ending fund balance is projected at $3.3 million, an increase of 55.1% over FY 2025-26. 307

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 87
110 - COMMUNITY REINVESTMENT PROGRAM
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Operating Transfers In
OPERATING TRANSFERS IN -80,000 -(80,000)-100.0%
Revenues/Other Sources -80,000 -(80,000)-100.0%
Expenditures by Category
SALARIES & BENEFITS 191,555 150,858 -(150,858)-100.0%
OPERATIONS & MAINTENANCE 286,820 1,510,391 -(1,510,391)-100.0% TRANSFERS 183,103 7,163,245 -(7,163,245)-100.0%
Expenditures/Other Financing Uses 661,478 8,824,494 -(8,824,494)-100.0% Net Revenues (661,478)(8,744,494)-8,744,494 -100.0%
Fund Balance, Beginning of Year 9,468,092 8,806,614 62,120 (8,744,494)-99.3% Fund Balance, End of Year 8,806,614 62,120 62,120 -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 or expenditures are expected in this fund for FY2026-27. Previously, this fund was established in FY2021-22 to provide various community grants to support the local economy in its recovery from the COVID-19 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)
Per Council direction at their May 27, 2025 meeting, available fund balance of $1 million was transferred to the General Fund to accelerate the paydown of the City's unfunded pension liability. The remaining fund balance of $62,120 will be maintained. 308

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
88 | Annual Operating Budget
Special Revenue and Debt Service Funds
309

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 89
Special Revenue and Debt Service Funds – Revenue Detail

REVENUE DETAIL

SPECIAL REVENUE & DEBT SERVICE
Description 2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
% Increase/
Decrease
100- GAS TAX FUND
4065 INVESTMENT INTEREST 71,258 42,801 42,801 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 3,878 - - - 0.0%
4700 GAS TAX 2106 438,336 456,446 464,458 8,012 1.8%
4701 GAS TAX 2105 679,775 721,054 733,620 12,566 1.7%
4702 GAS TAX 2107 902,487 963,690 981,018 17,328 1.8%
4704 GAS TAX 2107.5 10,000 10,000 10,000 - 0.0%
4706 GAS TAX 2103 1,037,206 1,075,436 1,097,115 21,679 2.0% TOTAL GAS TAX FUND 3,142,939 3,269,427 3,329,012 59,585 1.8% 102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA)
FUND
4065 INVESTMENT INTEREST 199,042 158,277 158,277 - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 22,596 - - - 0.0%
4709 RMRA-ROAD MAINTENANCE REHABILITATION ACT 2,983,049 2,969,986 3,148,728 178,742 6.0%

TOTAL ROAD MAINTENANCE REHABILITATION ACCOUNT
(RMRA) FUND 3,204,686 3,128,263 3,307,005 178,742 5.7%
103 - STREET MAINTENANCE FUND
4065 INVESTMENT INTEREST 295,837 227,222 227,222 - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 35,979 - - - 0.0%
6002 TRANSFER IN FROM MEASURE S FUND 2,000,000 1,000,000 1,000,000 - 0.0% TOTAL STREET MAINTENANCE FUND 2,331,816 1,227,222 1,227,222 - 0.0% 105 - NPDES IN-LIEU FEES FUND
4065 INVESTMENT INTEREST 21,258 19,603 19,603 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 3,208 - - - 0.0%
TOTAL NPDES IN LIEU FEES FUND 24,466 19,603 19,603 - 0.0% 106- UPTOWN TEMECULA NEW STREETS IN-LIEU FEES
4065 INVESTMENT INTEREST 60,979 48,440 48,440 - 0.0%
4259 UPTOWN TEMECULA NEW STREETS IN LIEU FEES 188,073 - - - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 8,177 - - - 0.0%
TOTAL UPTOWN TEMECULA NEW STREETS IN-LIEU FEES 257,230 48,440 48,440 - 0.0% 120 - DEVELOPMENT IMPACT FEES (DIF) FUND
4051 CIP - DIF-OPEN SPACE AND TRAILS 384,531 119,476 616,835 497,359 416.3% 4065 INVESTMENT INTEREST 701,449 580,626 580,626 - 0.0% 4240 CIP - DIF - QUIMBY 1,072,013 591,945 997,030 405,085 68.4% 4242 CIP - DIF-STREET IMPROVEMENTS 675,847 1,643,296 5,619,488 3,976,192 242.0% 4243 CIP - DIF-TRAFFIC SIGNALS 98,858 232,564 799,999 567,435 244.0% 4244 CIP - DIF-PARK & REC IMPROVEMENTS 470,401 409,902 2,116,237 1,706,335 416.3% 4245 CIP - DIF-CORPORATE FACILITIES 101,717 135,309 653,180 517,871 382.7% 4246 CIP - DIF-FIRE PROTECTION FACILITIES 29,852 52,380 538,232 485,852 927.6% 4247 CIP - DIF-LIBRARY FACILITIES 479,461 131,864 834,828 702,964 533.1% 4256 CIP - DIF-POLICE FACILITIES 48,664 93,834 477,209 383,375 408.6% 4545 GASB 31 - FMV ON INVESTMENTS 75,061 - - - 0.0%
TOTAL DEVELOPMENT IMPACT FEES FUND 4,137,853 3,991,196 13,233,663 9,242,467 231.6% 310

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
90 | Annual Operating Budget

REVENUE DETAIL

SPECIAL REVENUE & DEBT SERVICE
Description 2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
% Increase/
Decrease
125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND
4039 PEG FEES REVENUES 125,757 100,000 125,000 25,000 25.0% 4065 INVESTMENT INTEREST 45,702 36,436 36,436 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 5,944 - - - 0.0%
TOTAL PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 177,403 136,436 161,436 25,000 18.3% 140 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND
4081 COMM DEVELOPMENT BLOCK GRANT 214,983 906,825 986,807 79,982 8.8% TOTAL COMMUNITY DEV BLOCK GRANT FUND 214,983 906,825 986,807 79,982 8.8% 145 - TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND
4065 INVESTMENT INTEREST 24,601 22,054 22,054 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 3,544 - - - 0.0%

TOTAL TEMECULA ENERGY EFFICIENCY ASSET (TEAM)
FUND 28,146 22,054 22,054 - 0.0%
150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND
4048 AB 2766 REVENUES 143,690 150,000 153,334 3,334 2.2% 4065 INVESTMENT INTEREST 21,699 16,694 16,694 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 2,658 - - - 0.0%
TOTAL AB 2766 MOTOR VEHICLE SUBVENTION FUND 168,048 166,694 170,028 3,334 2.0% 160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND
4065 INVESTMENT INTEREST 6,562 3,502 3,502 - 0.0%
4085 SUPPLEMENTAL LAW ENFORCEMENT SERVICES 328,144 280,000 280,000 - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 291 - - - 0.0%

TOTAL SUPPLEMENTAL LAW ENFORCEMENT SERVICES
FUND 334,997 283,502 283,502 - 0.0%
165 - AFFORDABLE HOUSING FUND
4009 RESIDUAL RECEIPT PAYMENT 360 180,000 - (180,000) -100.0% 4065 INVESTMENT INTEREST 280,892 238,091 238,091 - 0.0% 4072 SALE OF PROPERTY - - 375,000 375,000 100.0%
4076 REIMBURSEMENTS 3,679 - - - 0.0%
4092 CONTRIBUTIONS AGENCY TRUST 250,000 250,000 250,000 - 0.0% 4094 LEASE INCOME 25,200 - - - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 37,554 - - - 0.0%
TOTAL AFFORDABLE HOUSING FUND 597,685 668,091 863,091 195,000 29.2% 170 - MEASURE A FUND
4065 INVESTMENT INTEREST 368,244 298,301 298,301 - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 45,857 - - - 0.0%
4725 MEASURE A ALLOCATIONS 4,199,604 3,944,000 4,280,000 336,000 8.5% TOTAL MEASURE A FUND 4,613,705 4,242,301 4,578,301 336,000 7.9% 198 - PUBLIC ART FUND
4065 INVESTMENT INTEREST 12,156 9,791 9,791 - 0.0%
4251 PUBLIC ART 18,441 6,300 2,350 (3,950) -62.7%
4545 GASB 31 - FMV ON INVESTMENTS 1,649 - - - 0.0%
TOTAL PUBLIC ART FUND 32,246 16,091 12,141 (3,950) -24.5% 311

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 91
Special Revenue and Debt Service Funds – Fund Summaries 100 - GAS TAX FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Taxes and Franchises
GAS TAX 3,067,804 3,226,626 3,286,211 59,585 1.8%
Use of Money and Property
INVESTMENT INTEREST 75,136 42,801 42,801 -0.0%
Revenues/Other Sources 3,142,939 3,269,427 3,329,012 59,585 1.8% Expenditures by Category
TRANSFERS 3,142,939 3,269,427 3,329,012 59,585 1.8%
Expenditures/Other Financing Uses 3,142,939 3,269,427 3,329,012 59,585 1.8% Net Revenues ----1.8%
Fund Balance, Beginning of Year ----0.0%
Fund Balance, End of Year ----0.0%
Fund Description
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 increase 1.8% compared to the current budget, as projected by the State of California. Investment interest earnings are held flat at $42,801. Expenditures reflect the transfer of funds to the General Fund to augment the Public Works budget for street and road maintenance. This fund operates as a pass-through, with no fund balance retained. 312

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
92 | Annual Operating Budget
102 - ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA)
FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Taxes and Franchises
GAS TAX 2,983,049 2,969,986 3,148,728 178,742 6.0%
Use of Money and Property
INVESTMENT INTEREST 221,637 158,277 158,277 -0.0%
Revenues/Other Sources 3,204,686 3,128,263 3,307,005 178,742 5.7% Expenditures by Category
TRANSFERS 2,012,555 6,907,425 2,883,697 (4,023,728)-58.3% Expenditures/Other Financing Uses 2,012,555 6,907,425 2,883,697 (4,023,728)-58.3% Net Revenues 1,192,131 (3,779,161)423,308 4,202,470 -38.3% Fund Balance, Beginning of Year 3,808,926 5,001,057 1,221,896 (3,779,161)-75.6% Fund Balance, End of Year 5,001,057 1,221,896 1,645,204 423,308 34.6% 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 roads projects and other transportation uses.

Analysis/Comments
RMRA revenue is projected to increase by 5.7% due to a 6.0% increase in Gas Tax receipts as projected by the State of California, with investment interest earnings held flat. Expenditures reflect the transfer to the Capital Improvement Program to fund the Pavement Rehabilitation project.

Expenditures are projected to decrease by 58.3% from the prior year, as the prior year expenditures reflect budget rolled forward from previous years. The ending fund balance is projected at $1.6 million, an increase of 34.6% over the prior year. 313

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 93
103 - STREET MAINTENANCE FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 331,816 227,222 227,222 -0.0%
Operating Transfers In
CONTRIBUTION FROM MEASURE S 2,000,000 1,000,000 1,000,000 -0.0% Revenues/Other Sources 2,331,816 1,227,222 1,227,222 -0.0% Expenditures by Category
TRANSFERS -4,864,784 224,356 (4,640,428)-95.4%
Expenditures/Other Financing Uses -4,864,784 224,356 (4,640,428)-95.4% Net Revenues 2,331,816 (3,637,562)1,002,866 4,640,428 -76.2% Fund Balance, Beginning of Year 6,166,190 8,498,006 4,860,443 (3,637,562)-42.8% Fund Balance, End of Year 8,498,006 4,860,443 5,863,309 1,002,866 20.6% 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 at $1.0 million in order to accumulate resources for future street and road replacement.

Revenue is projected to remain flat compared to the current budget. Expenditures are projected to decrease 95.4% over the prior year due to varying Capital Project funding needs. The ending fund balance is projected at $5.9 million, an increase of 20.6% over the prior year. 314

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
94 | Annual Operating Budget
105 - NPDES IN LIEU FEES FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 24,466 19,603 19,603 -0.0%
Revenues/Other Sources 24,466 19,603 19,603 -0.0%
Expenditures by Category
CAPITAL OUTLAY 344,618 155,382 -(155,382)-100.0%
Expenditures/Other Financing Uses 344,618 155,382 -(155,382)-100.0% Net Revenues (320,152)(135,779)19,603 155,382 -88.8%
Fund Balance, Beginning of Year 631,753 311,601 175,822 (135,779)-43.6% Fund Balance, End of Year 311,601 175,822 195,425 19,603 11.1% 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 occurs. Revenue is projected to remain flat compared to the current budget, with investment interest earnings held at $19,603. No Capital Outlay expenditures are budgeted for FY2026-27, due to the phasing of the replacement of the City's Storm Drain Inlet Filters. The ending fund balance is projected at $195,425, an increase of 11.1% over the prior year.
315

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 95
106 - UPTOWN TEMECULA NEW STREETS IN-LIEU FEES
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
DEVELOPMENT IMPACT FEES 188,073 ---0.0%
Use of Money and Property
INVESTMENT INTEREST 69,157 48,440 48,440 -0.0%
Revenues/Other Sources 257,230 48,440 48,440 -0.0%
Expenditures by Category
TRANSFERS -500,857 -(500,857)-100.0%
Expenditures/Other Financing Uses -500,857 -(500,857)-100.0% Net Revenues 257,230 (452,417)48,440 500,857 -91.2%
Fund Balance, Beginning of Year 1,391,118 1,648,347 1,195,930 (452,417)-27.4% Fund Balance, End of Year 1,648,347 1,195,930 1,244,370 48,440 4.1% Fund Description
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. Revenue is projected to remain flat at $48,440, consisting solely of investment interest earnings. No expenditures are budgeted for FY2026-27, a 100.0% decrease from the prior year, due to the completion of the Capital Improvement Program to support the Las Haciendas Affordable Housing Project. The ending fund balance is projected at $1.2 million, an increase of 4.1% over the prior year. 316

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
96 | Annual Operating Budget
120 - DEVELOPMENT IMPACT FEES FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
QUIMBY FEES 1,072,013 591,945 997,030 405,085 68.4%
DEVELOPMENT IMPACT FEES 2,289,331 2,818,625 11,656,008 8,837,382 313.5% Use of Money and Property
INVESTMENT INTEREST 776,510 580,626 580,626 -0.0%
Revenues/Other Sources 4,137,853 3,991,196 13,233,663 9,242,467 231.6% Expenditures by Category
TRANSFERS 4,783,586 13,181,795 6,220,931 (6,960,864)-52.8% Expenditures/Other Financing Uses 4,783,586 13,181,795 6,220,931 (6,960,864)-52.8% Net Revenues (645,733)(9,190,599)7,012,732 16,203,331 13.3% Fund Balance, Beginning of Year 15,864,154 15,218,421 6,027,822 (9,190,599)-60.4% Fund Balance, End of Year 15,218,421 6,027,822 13,040,554 7,012,732 116.3% 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 are projected to increase 231.6% over the current year, driven by a 313.5% increase in Development Impact Fees ($8.8 million) and a 68.4% increase in Quimby Fees, in accordance with expected development activity. Investment interest earnings are held flat at $580,626. Expenditures of DIF reflect the transfer of $6.2 million to the Capital Improvement Program to fund the projects necessary to mitigate the impacts of development, a decrease of 52.8% from the prior year. The ending fund balance is projected at $13.0 million, an increase of 116.3% over the prior year. 317

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 97
125 - PUBLIC EDUCATION & GOVERNMENT (PEG) FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Taxes and Franchises
PEG FEES 125,757 100,000 125,000 25,000 25.0%
Use of Money and Property
INVESTMENT INTEREST 51,646 36,436 36,436 -0.0%
Revenues/Other Sources 177,403 136,436 161,436 25,000 18.3% Expenditures by Category
CAPITAL OUTLAY 57,396 135,058 325,000 189,942 140.6%
Expenditures/Other Financing Uses 57,396 135,058 325,000 189,942 140.6% Net Revenues 120,007 1,378 (163,564)(164,942)79.2%
Fund Balance, Beginning of Year 1,033,678 1,153,685 1,155,063 1,378 0.1% Fund Balance, End of Year 1,153,685 1,155,063 991,499 (163,564)-14.2% Fund Description
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 fee revenue is projected to increase 25.0% to $125,000, with investment interest earnings held flat at $36,436. Total revenue is projected to increase 18.3% over the current year. Capital Outlay expenditures of $325,000 represent a 140.6% increase over the prior year, reflecting the investment in updating the broadcast equipment used to manage the content and broadcast of the City's public television channel. The ending fund balance is projected at $991,499, a decrease of 14.2% from the prior year.

318

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
98 | Annual Operating Budget
140 - COMMUNITY DEV BLOCK GRANT FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Intergovernmental Revenues

COMMUNITY DEVELOPMENT BLOCK
GRANT 214,983 906,825 986,807 79,982 8.8%
Revenues/Other Sources 214,983 906,825 986,807 79,982 8.8% Expenditures by Category
SALARIES & BENEFITS 39,204 45,804 78,663 32,859 71.7%
OPERATIONS & MAINTENANCE 146,285 255,440 250,964 (4,476)-1.8% TRANSFERS (323,453)561,636 657,180 95,544 17.0%
Expenditures/Other Financing Uses (137,964)862,880 986,807 123,926 14.4% Net Revenues 352,947 43,945 -(43,944)11.5%
Fund Balance, Beginning of Year (396,892)(43,945)-43,945 100.0% Fund Balance, End of Year (43,945)---85.7%
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 of $986,807 reflects the reimbursement for operations and Capital projects expected to be completed during the fiscal year, an 8.8% increase over the prior year’s budget. The transfers of $657,180 provides funding for Capital Improvement Projects. The fund is projected to have a zero ending fund balance.
319

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 99
145 - TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 28,146 22,054 22,054 -0.0%
Revenues/Other Sources 28,146 22,054 22,054 -0.0%
Expenditures by Category
TRANSFERS 340,199 210,653 -(210,653)-100.0%
Expenditures/Other Financing Uses 340,199 210,653 -(210,653)-100.0% Net Revenues (312,053)(188,599)22,054 210,653 -90.5%
Fund Balance, Beginning of Year 634,403 322,349 133,751 (188,599)-58.5% Fund Balance, End of Year 322,349 133,751 155,805 22,054 16.5% 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 projected to remain flat at $22,054, consisting solely of investment interest earnings. No expenditures are budgeted for FY2026-27, a 100.0% decrease from the prior year, as no transfers to the Capital Improvement Program for energy efficiency projects are expected. The ending fund balance is projected at $155,805, an increase of 16.5% over the prior year. 320

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
100 | Annual Operating Budget
150 - AB 2766 MOTOR VEHICLE SUBVENTION FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 24,357 16,694 16,694 -0.0%
Intergovernmental Revenues
AB2766 MOTOR VEHICLE SUBVENTION 143,690 150,000 153,334 3,334 2.2% Revenues/Other Sources 168,048 166,694 170,028 3,334 2.0% Expenditures by Category
OPERATIONS & MAINTENANCE 13,200 13,200 13,200 -0.0%
TRANSFERS 1,240 637,835 170,000 (467,835)-73.3%
Expenditures/Other Financing Uses 14,440 651,035 183,200 (467,835)-71.9% Net Revenues 153,608 (484,341)(13,172)471,169 -56.8%
Fund Balance, Beginning of Year 439,743 593,350 109,009 (484,341)-81.6% Fund Balance, End of Year 593,350 109,009 95,837 (13,172)-12.1% 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 Motor Vehicle Subvention revenue is projected to increase 2.2% to $153,334. Expenditures are allocated to fund the Clean Cities Coalition ($13,200) and $170,000 in transfers for Capital Improvement Projects. Total expenditures are projected to decrease 71.9% from the prior year due prior-year transfers to support the Nicolas Road Trail Extension project. The ending fund balance is projected at $95,837, a decrease of 12.1% from the prior year.

321

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 101
160 - SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 6,853 3,502 3,502 -0.0%
Intergovernmental Revenues
SLESF GRANT 328,144 280,000 280,000 -0.0%
Revenues/Other Sources 334,997 283,502 283,502 -0.0%
Expenditures by Category
TRANSFERS 334,997 283,502 283,502 -0.0%
Expenditures/Other Financing Uses 334,997 283,502 283,502 -0.0% Net Revenues ----0.0%
Fund Balance, Beginning of Year ----0.0%
Fund Balance, End of Year ----0.0%
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 FY2026-27 at $283,502. Expenditures reflect the transfer of these funds to the General Fund to supplement the Sheriff's budget. This fund operates as a pass-through, with no fund balance retained.
322

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
102 | Annual Operating Budget
165 - AFFORDABLE HOUSING FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
LEASE/RENTAL INCOME 25,200 ---0.0%
OTHER 360 180,000 375,000 195,000 108.3%
INVESTMENT INTEREST 318,446 238,091 238,091 -0.0%
Intergovernmental Revenues
AGENCY TRUST CONTRIBUTION 250,000 250,000 250,000 -0.0% Reimbursements
OTHER REIMBURSEMENTS 3,679 ---0.0%
Revenues/Other Sources 597,685 668,091 863,091 195,000 29.2% Expenditures by Category
SALARIES & BENEFITS 195,539 248,132 232,607 (15,524)-6.3% OPERATIONS & MAINTENANCE 268,206 601,121 185,308 (415,813)-69.2% INTERNAL SERVICE FUND ALLOCATIONS 50,028 53,766 53,601 (165)-0.3% TRANSFERS 962,914 4,128,445 -(4,128,445)-100.0%
Expenditures/Other Financing Uses 1,476,687 5,031,464 471,516 (4,559,947)-90.6% Net Revenues (879,001)(4,363,373)391,574 4,754,947 -76.6% Fund Balance, Beginning of Year 12,171,616 11,292,614 6,929,241 (4,363,373)-38.6% Fund Balance, End of Year 11,292,614 6,929,241 7,320,815 391,574 5.7% 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 Fund revenues are projected to increase 29.2% over the prior year, driven by a 108.3% increase primarily due to the anticipated sale of an affordable housing unit the City re-acquired in the prior fiscal year. Investment interest earnings are held flat at $238,091 and the Agency Trust Contribution remains at $250,000. Expenditures are projected to decrease 90.6% from the prior year to $471,516, primarily due to a 100.0% reduction in Transfers as no Affordable Housing Capital Improvement Projects are programmed for FY 2026-27. The ending fund balance is projected at $7.3 million, an increase of 5.7% over the prior year. 323

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 103
170 - MEASURE A FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 414,102 298,301 298,301 -0.0%
Intergovernmental Revenues
MEASURE A 4,199,604 3,944,000 4,280,000 336,000 8.5%
Revenues/Other Sources 4,613,705 4,242,301 4,578,301 336,000 7.9% Expenditures by Category
OPERATIONS & MAINTENANCE 411,378 3,622,265 3,155,000 (467,265)-12.9% TRANSFERS 1,907,206 9,855,823 1,312,000 (8,543,823)-86.7% Expenditures/Other Financing Uses 2,318,584 13,478,087 4,467,000 (9,011,087)-66.9% Net Revenues 2,295,121 (9,235,787)111,301 9,347,087 -49.0% Fund Balance, Beginning of Year 8,367,804 10,662,925 1,427,139 (9,235,787)-86.6% Fund Balance, End of Year 10,662,925 1,427,139 1,538,439 111,301 7.8% 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 increase 8.5% to $4.28 million. Total revenues are projected to increase 7.9% over the prior year. Operational expenditures of $3.16 million, which support the Public Works department in the maintenance of streets and roads, are decreasing 12.9%.

Transfers to the Capital Improvement Program of $1.31 million, to primarily fund the Pavement Rehabilitation Program, are decreasing 86.7% as the FY2025-26 expenditures included budget rolled forward from previous years. Total expenditures are projected to decrease 66.9%. The ending fund balance is projected at $1.5 million, an increase of 7.8% over the prior year. 324

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
104 | Annual Operating Budget
198 - PUBLIC ART FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
PUBLIC ART 18,441 6,300 2,350 (3,950)-62.7%
Use of Money and Property
INVESTMENT INTEREST 13,805 9,791 9,791 -0.0%
Revenues/Other Sources 32,246 16,091 12,141 (3,950)-24.5% Expenditures by Category
OPERATIONS & MAINTENANCE 7,316 15,540 18,000 2,460 15.8% TRANSFERS --100,000 100,000 100.0%
Expenditures/Other Financing Uses 7,316 15,540 118,000 102,460 659.3% Net Revenues 24,930 551 (105,859)(106,410)311.4%
Fund Balance, Beginning of Year 280,483 305,413 305,964 551 0.2% Fund Balance, End of Year 305,413 305,964 200,105 (105,859)-34.6% Fund Description
This fund was established pursuant to Temecula Municipal Code Section 5.08.040, whereby the fund serves a 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 FY2026-27 is projected to decrease 24.5%, which includes a 62.7% decline in revenue from development fees. Investment interest earnings are held flat at $9,791. Expenditures are projected to increase to $118,000, which includes $18,000 in Operations & Maintenance and a $100,000 transfer to the Capital Improvement Program to begin funding the design of the I-15 Corridor Branding and Visioning Improvements. The ending fund balance is projected at $200,105, a decrease of 34.6% from the prior year.
325

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 105
Temecula Community Services District (TCSD)
326

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
106 | Annual Operating Budget
TCSD – Revenue by Source

REVENUE BY SOURCE
190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Taxes and Franchises
SPECIAL TAX (MEASURE C)1,894,831 1,935,718 1,955,076 19,358 1.0% Licenses, Permits and Service Charges
AQUATICS 362,952 337,726 337,650 (76)0.0%
SPORTS LEAGUES & TOURNAMENTS 309,516 231,943 271,375 39,432 17.0% CONTRACT CLASSES 1,202,678 1,200,000 1,200,000 -0.0%
CLASSES/ACTIVITIES 114,279 71,077 64,500 (6,577)-9.3%
FACILITY RENTALS 441,776 428,576 419,081 (9,495)-2.2%
MUSEUM ADMISSIONS 101,832 95,045 95,100 55 0.1%
THEATER ADMISSIONS 245,400 271,800 297,000 25,200 9.3%
DAY CAMPS 137,217 120,450 120,450 -0.0%
Use of Money and Property
INVESTMENT INTEREST 39,567 35,000 12,924 (22,076)-63.1% Reimbursements
OTHER REIMBURSEMENTS 248,698 123,263 131,510 8,247 6.7% Operating Transfers In
CONTRIBUTION FROM MEASURE S 15,864,726 14,331,992 14,675,947 343,955 2.4% Miscellaneous
MISCELLANEOUS 99,767 82,380 89,576 7,196 8.7%
Total Revenues and Other Sources 21,063,238 19,264,970 19,670,189 405,219 2.1% 327

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 107
TCSD – Revenue Detail

REVENUE DETAIL
190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND
Fund
190 Description 2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
180 - OPERATIONS
4004 SPECIAL TAX (MEASURE C)1,894,831 1,935,718 1,955,076 19,358 1.0% 4065 INVESTMENT INTEREST 32,104 35,000 12,924 (22,076)-63.1% 4070 CASH OVER & SHORT (68)---0.0%
4387 FILMING LOCATION AGREEMENT FEE 120 80 80 -0.0%
6002 TRANSFER IN FROM MEASURE S FUND 15,864,726 14,331,992 14,675,947 343,955 2.4% 181 - TCSD - HUMAN SERVICES
4076 REIMBURSEMENTS 31,510 23,263 31,510 8,247 35.5%
4977 INCLUSIVE CLASSES/ACTIVITIES 4,331 6,100 6,000 (100)-1.6% 4978 SENIOR/INCLUSIVE DAY CAMP 24,678 1,602 -(1,602)-100.0% 4983 TRANSPORTATION 1,499 1,700 2,700 1,000 58.8%
4986 EXCURSIONS 2,215 4,250 4,250 -0.0%
4990 INDOOR RENTALS 269 576 999 423 73.4%
182 - TCSD - COMMUNITY RECREATION CENTER
4966 OPEN GYM RESIDENT/NONRESIDENT 10,964 13,250 13,250 -0.0% 4980 CLASSES/ACTIVITIES --1,871 1,871 100.0%
4984 DAY CAMP 137,217 120,450 120,450 -0.0%
4990 INDOOR RENTALS 15,425 9,500 8,000 (1,500)-15.8%
4992 SPECIAL EVENTS 13,477 2,100 -(2,100)-100.0%
4998 SKATE PARK --300 300 100.0%
183 - TCSD - SPECIAL EVENTS
4161 SPECIAL EVENT PERMITS 100 100 100 -0.0%
4992 SPECIAL EVENTS 64,510 63,000 63,000 -0.0%
184 - TCSD - FACILITIES & RENTALS
4921 INDOOR RENTALS - CONFERENCE CENTER 10,935 7,000 7,000 -0.0% 4989 PICNIC SHELTER RENTALS 21,654 17,500 15,000 (2,500)-14.3% 4990 INDOOR RENTALS 45,570 40,000 65,000 25,000 62.5%
185 - TCSD - MUSEUM AND CULTURAL ARTS
4088 DONATIONS 395 ---0.0%
4508 GIFT SHOP 19,765 13,500 15,000 1,500 11.1%
4951 TOURS 98 45 100 55 122.2%
4953 FIELD TRIPS 3,354 3,000 2,754 (246)-8.2%
4980 CLASSES/ACTIVITIES 780 ---0.0%
4990 INDOOR RENTALS 1,335 ---0.0%
4991 ADMISSIONS 24,427 20,000 20,000 -0.0%
186 - TCSD - AQUATICS
4970 SWIM LESSONS 285,795 250,000 250,000 -0.0%
4971 LAP SWIM 21,907 22,000 22,000 -0.0%
328

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
108 | Annual Operating Budget

REVENUE DETAIL
190 - TEMECULA COMMUNITY SERVICES DISTRICT FUND
Fund
190 Description 2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
4972 PUBLIC SWIM 43,989 55,000 55,000 -0.0%
4973 FAMILY NIGHT SWIM 278 76 -(76)-100.0%
4974 POOL RENTALS 15,889 24,000 24,000 -0.0%
4976 NON RESIDENT SWIM 10,983 10,650 10,650 -0.0%
4980 CLASSES/ACTIVITIES 70,112 48,500 41,000 (7,500)-15.5% 187 - TCSD - SPORTS
4959 ADULT BASKETBALL LEAGUE 13,820 6,923 -(6,923)-100.0% 4960 ADULT SOFTBALL 51,450 40,000 46,500 6,500 16.2%
4961 ADULT KICKBALL 3,010 4,400 4,400 -0.0%
4962 HOCKEY 27,599 30,110 72,265 42,155 140.0%
4963 TOURNAMENTS 185,380 125,000 122,400 (2,600)-2.1%
4965 YOUTH LEAGUES - NON RESIDENT 17,293 12,260 12,260 -0.0% 4988 FIELD RENTALS/LIGHTS 222,954 230,000 204,082 (25,918)-11.3% 4997 CONCESSIONS -2,500 10,296 7,796 311.8%
189 - TCSD - COMMUNITY THEATER
4901 FRONT OF HOUSE FEES 8,913 8,800 7,000 (1,800)-20.5% 4906 THEATER-STAGEHAND LABOR REIMB.99,525 110,000 110,000 -0.0% 4907 THEATER-TICKET SERVICES REIMB.41,399 43,000 40,000 (3,000)-7.0% 4910 THEATER-TEMECULA PRESENTS 95,564 110,000 140,000 30,000 27.3% 4990 INDOOR RENTALS 74,995 65,000 60,000 (5,000)-7.7%
4991 ADMISSIONS 77,306 75,000 75,000 -0.0%
4997 CONCESSIONS 1,500 1,200 1,200 -0.0%
4999 THEATER-EQUIPMENT RENTALS 32,752 35,000 35,000 -0.0% 197 - TCSD - CONTRACT CLASSES
4982 CONTRACTED CLASSES 1,202,678 1,200,000 1,200,000 -0.0% 201 - TCSD - HOMELESS OUTREACH AND PREVENTION
4076 REIMBURSEMENTS 217,189 100,000 100,000 -0.0%
202 - TCSD - WORKFORCE DEVELOPMENT
4248 TCSD WORKFORCE PROGRAMS 7,210 5,825 5,825 -0.0%
199 - NON-DEPARTMENTAL
4545 GASB 31 - FMV ON INVESTMENTS 7,532 ---0.0%
TOTAL TEMECULA COMMUNITY SERVICES DISTRICT FUND 21,063,238 19,264,970 19,670,189 405,219 2.1% 329

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 109

REVENUE DETAIL

TEMECULA COMMUNITY SERVICE DISTRICT
Description 2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 4065 INVESTMENT INTEREST 59,969 47,370 47,370 - 0.0%
6192 TRANSFER IN FROM SVC LVL B STREET LIGHTS FUND 200,000 - - - 0.0% 4545 GASB 31 - FMV ON INVESTMENTS 7,813 - - - 0.0%
TOTAL TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT
FUND 267,781 47,370 47,370 - 0.0%
192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND
4005 ASSESSMENTS 657,526 658,173 658,153 (20) 0.0%
4065 INVESTMENT INTEREST 21,859 15,756 15,756 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 3,552 - - - 0.0%
TOTAL TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 682,937 673,929 673,909 (20) 0.0% 194 - TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND
4005 ASSESSMENTS 10,577,457 10,586,696 11,698,506 1,111,810 10.5% 4065 INVESTMENT INTEREST 57,867 33,639 33,639 - 0.0%
4096 RECYCLING PROGRAM 66,174 60,593 27,553 (33,040) -54.5% 4545 GASB 31 - FMV ON INVESTMENTS 15,507 - - - 0.0%
4858 OTHER FINANCING SOURCE - SBITA 50,755 - - - 0.0%
TOTAL TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 10,767,760 10,680,929 11,759,698 1,078,770 10.1% 195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT. FUND
4005 ASSESSMENTS 5,667 5,532 5,532 - 0.0%
4065 INVESTMENT INTEREST 1,796 1,410 1,410 - 0.0%
4545 GASB 31 - FMV ON INVESTMENTS 240 - - - 0.0%
TOTAL TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 7,703 6,943 6,943 - 0.0% 196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND
4005 ASSESSMENTS 257,481 259,318 261,911 2,593 1.0%
4007 HARVESTON LAKE BOAT REVENUE 1,500 7,500 7,500 - 0.0% 4065 INVESTMENT INTEREST 15,400 12,023 12,023 - 0.0%
4301 PERMITS 10,095 9,000 6,000 (3,000) -33.3%
4545 GASB 31 - FMV ON INVESTMENTS 2,461 - - - 0.0%
TOTAL TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 286,937 287,841 287,434 (407) -0.1% 197 - TEMECULA LIBRARY FUND
4065 INVESTMENT INTEREST 12,957 9,124 9,124 - 0.0%
4070 CASH OVER & SHORT 1 - - - 0.0%
4071 FINES & FEES 11,997 10,178 10,178 - 0.0%
4076 REIMBURSEMENTS - 150 - (150) -100.0%
4079 PRINTING & COPIES 12,176 13,442 13,442 - 0.0%
4274 FACILITIES RENTALS 14,538 16,540 16,540 - 0.0%
6002 TRANSFER IN FROM MEASURE S FUND 1,127,563 1,308,073 1,774,877 466,804 35.7% 4545 GASB 31 - FMV ON INVESTMENTS 1,847 - - - 0.0%
TOTAL TEMECULA LIBRARY FUND 1,181,079 1,357,507 1,824,161 466,654 34.4% 501-530 TCSD SERVICE LEVEL "C" SLOPE MAINT. FUNDS
4005 ASSESSMENTS 1,589,964 1,593,048 1,594,276 1,228 0.1% 4065 INVESTMENT INTEREST 80,628 62,954 62,954 -0.0%
4545 GASB 31 - FMV ON INVESTMENTS 14,096 0 0 -0.0%
TOTAL SERVICE LEVEL"C"ZONE 1 SADDLEWOOD FUND 1,684,688 1,656,002 1,657,230 1,228 0.1% 330

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
110 | Annual Operating Budget
TCSD –Fund Summaries

TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - ALL FUNDS COMBINED Description 2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Fund
190 - TCSD Operations 21,063,238 19,264,970 19,670,189 405,219 2.1% 191 - Service Level B (Streetlight Replacement)267,781 47,370 47,370 -0.0% 192 – Service Level B (Street Lights)682,937 673,929 673,909 (20)0.0% 194 – Service Level D (Refuse/Recycling)10,767,760 10,680,929 11,759,698 1,078,770 10.1% 195 – Service Level R (Road Maintenance)7,703 6,943 6,943 -0.0% 196 – Service Level L (Lake Park Maintenance)286,937 287,841 287,434 (407)-0.1% 197 – Temecula Public Library 1,181,079 1,357,507 1,824,161 466,654 34.4% 501-530 – Service Level C (Slope Maintenance)1,684,688 1,656,002 1,657,230 1,228 0.1% Total Revenues and Other Sources 35,942,124 33,975,490 35,926,933 1,951,443 5.7% Expenditures by Fund
190 - TCSD Operations 20,331,619 20,521,086 19,670,189 (850,897)-4.1% 191 - Service Level B (Streetlight Replacement)-20,000 40,000 20,000 100.0% 192 – Service Level B (Street Lights)564,803 679,738 737,225 57,487 8.5% 194 – Service Level D (Refuse/Recycling)10,974,991 11,279,506 11,899,089 619,583 5.5% 195 – Service Level R (Road Maintenance)274 2,434 10,434 8,000 328.7% 196 – Service Level L (Lake Park Maintenance)301,441 376,576 370,364 (6,211)-1.6% 197 – Temecula Public Library 1,181,727 1,512,186 1,824,161 311,975 20.6% 501-530 – Service Level C (Slope Maintenance)1,565,410 1,669,473 1,733,047 63,574 3.8% Total Expenditures and Other Financial Uses 34,920,265 36,060,999 36,284,510 223,512 0.6% Excess of Revenues Over (Under) Expenditures 1,021,859 (2,085,508)(357,577)1,727,932 3.1% Fund Balance, Beginning of Year 6,166,262 7,188,121 5,102,613 (2,085,508)-29.0% Fund Balance, End of Year 7,188,121 5,102,613 4,745,036 (357,577)-7.0% 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. 331

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 111

TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) OPERATIONS SUMMARY Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Department
AQUATICS 448,953 410,226 402,650 (7,576)-1.85%
COMMUNITY RECREATION CENTER 177,082 145,300 143,871 (1,429)-0.98% COMMUNITY THEATER 431,953 448,000 468,200 20,200 4.51%
CONTRACT CLASSES 1,202,678 1,200,000 1,200,000 -0.00%
HOMELESS OUTREACH AND PREVENTION 217,189 100,000 100,000 -0.00% MUSEUM AND CULTURAL ARTS 50,154 36,545 37,854 1,309 3.58% NON-DEPARTMENTAL 7,532 ---0.00%
OPERATIONS 17,791,712 16,302,790 16,644,027 341,237 2.09% SENIOR AND INCLUSIVE SERVICES 64,501 37,491 45,459 7,968 21.25% SPECIAL EVENTS 64,610 63,100 63,100 -0.00%
SPORTS 521,506 451,193 472,203 21,010 4.66%
TEMECULA COMMUNITY CENTER 78,159 64,500 87,000 22,500 34.88% WORKFORCE DEVELOPMENT 7,210 5,825 5,825 -0.00%
Total Revenues and Other Sources 21,063,238 19,264,970 19,670,189 405,219 2.10% Expenditures by Department
AQUATICS 2,293,522 2,462,636 2,490,173 27,537 1.12%
COMMUNITY RECREATION CENTER 1,328,013 1,200,259 1,248,323 48,064 4.00% COMMUNITY THEATER 1,615,673 1,517,308 1,509,094 (8,213)-0.54% CONTRACT CLASSES 1,692,791 1,538,000 1,398,618 (139,382)-9.06% HOMELESS OUTREACH AND PREVENTION 1,641,371 1,691,916 1,648,359 (43,557)-2.57% MUSEUM AND CULTURAL ARTS 979,855 650,094 598,585 (51,509)-7.92% OPERATIONS 6,740,448 7,138,096 6,681,680 (456,416)-6.39% SENIOR AND INCLUSIVE SERVICES 1,115,733 1,765,298 1,718,817 (46,481)-2.63% SPECIAL EVENTS 1,190,627 1,237,330 1,058,550 (178,781)-14.45% SPORTS 893,405 849,154 768,571 (80,583)-9.49%
TEMECULA COMMUNITY CENTER 404,349 470,995 549,419 78,425 16.65% WORKFORCE DEVELOPMENT 435,832 ---0.00%
Total Expenditures and Other Financial Uses 20,331,619 20,521,086 19,670,189 (850,897)-4.15% Excess of Revenues Over (Under) Expenditures 731,620 (1,256,116)-1,256,116 -100.00% Fund Balance, Beginning of Year 624,497 1,356,116 100,000 (1,256,116)-92.6% Adjustment to Fund Balance ----0.0%
Fund Balance, End of Year 1,356,116 100,000 100,000 0 0.0% 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.

Analysis/Comments
TCSD revenue is projected to increase 2.1% overall, including a 2.4% increase in the Contribution from Measure S and a 17.0% increase in Sports Leagues & Tournaments revenue. Theater Admissions are projected to increase 9.3%. Expenditures are projected to decrease

4.1%, including a 3.7% decrease in Salaries & Benefits and a 4.4% reduction in Operations & Maintenance expenditures. Internal Service Fund Allocations are decreasing 5.7%. These expenditures continue to provide the community recreational, cultural arts, sports, and human service programs. The ending fund balance is projected at $100,000, unchanged from the current year. 191 - TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 332

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
112 | Annual Operating Budget
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Use of Money and Property
INVESTMENT INTEREST 67,781 47,370 47,370 -0.0%
Operating Transfers In
OPERATING TRANSFERS IN 200,000 ---0.0%
Revenues/Other Sources 267,781 47,370 47,370 -0.0%
Expenditures by Category
OPERATIONS & MAINTENANCE -20,000 40,000 20,000 100.0%
Expenditures/Other Financing Uses -20,000 40,000 20,000 100.0% Net Revenues 267,781 27,370 7,370 (20,000)29.7%
Fund Balance, Beginning of Year 1,324,223 1,592,004 1,619,374 27,370 1.7% Fund Balance, End of Year 1,592,004 1,619,374 1,626,744 7,370 0.5% Fund Description
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
Revenue is projected to remain flat at $47,370, consisting solely of investment interest earnings. No Operating Transfers In are budgeted, as the desired reserve of $1.5 million has been reached. Expenditures of $40,000 represent a 100.0% increase over the prior year in order to maintain the newly acquired residential street lights. The ending fund balance is projected at $1.63 million, an increase of 0.5% over the prior year. 333

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 113
192 - TCSD SERVICE LEVEL "B" STREET LIGHTS FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
ASSESSMENTS 657,526 658,173 658,153 (20)0.0%
Use of Money and Property
INVESTMENT INTEREST 25,412 15,756 15,756 -0.0%
Revenues/Other Sources 682,937 673,929 673,909 (20)0.0% Expenditures by Category
SALARIES & BENEFITS -206,647 212,894 6,247 3.0%
OPERATIONS & MAINTENANCE 364,803 436,488 483,688 47,200 10.8% INTERNAL SERVICE FUND ALLOCATIONS -36,603 40,643 4,040 11.0% TRANSFERS 200,000 ---0.0%
Expenditures/Other Financing Uses 564,803 679,738 737,225 57,487 8.5% Net Revenues 118,135 (5,810)(63,317)(57,507)4.2%
Fund Balance, Beginning of Year 523,266 641,400 635,590 (5,810)-0.9% Fund Balance, End of Year 641,400 635,590 572,274 (63,317)-10.0% 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 projected to remain flat at $658,153. Total expenditures are projected to increase 8.5%, including a

3.0% increase in Salaries & Benefits, a 10.8% increase in Operations & Maintenance, and an 11.0% increase in Internal Service Fund Allocations.

The expenditure increases reflect the continued support of the ongoing operations and maintenance of the streetlight network. The ending fund balance is projected at $572,274, a decrease of 10.0% from the prior year. 334

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
114 | Annual Operating Budget
194 - TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
RECYCLING PROGRAM 66,174 60,593 27,553 (33,040)-54.5%
ASSESSMENTS 10,577,457 10,586,696 11,698,506 1,111,810 10.5% Use of Money and Property
OTHER 50,755 ---0.0%
INVESTMENT INTEREST 73,374 33,639 33,639 -0.0%
Revenues/Other Sources 10,767,760 10,680,929 11,759,698 1,078,770 10.1% Expenditures by Category
SALARIES & BENEFITS 70,288 82,946 96,021 13,075 15.8%
OPERATIONS & MAINTENANCE 10,828,043 11,157,451 11,803,068 645,617 5.8% CAPITAL OUTLAY 76,659 39,109 -(39,109)-100.0%
Expenditures/Other Financing Uses 10,974,991 11,279,506 11,899,089 619,583 5.5% Net Revenues (207,230)(598,577)(139,391)459,187 7.7%
Fund Balance, Beginning of Year 945,198 737,968 139,390 (598,577)-81.1% Fund Balance, End of Year 737,968 139,390 -(139,391)-100.0% 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 increase 10.1% overall, driven by a 10.5% increase in Assessments ($1.1 million). Total expenditures are projected to increase 5.5%, primarily due to a 5.8% increase in Operations & Maintenance reflecting the pass-through of Assessment revenue to CR&R for Refuse and Recycling services. Capital Outlay is reduced 100.0% as no equipment purchases are planned. The ending fund balance is projected to be zero by year-end.
335

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 115
195 - TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
ASSESSMENTS 5,667 5,532 5,532 -0.0%
Use of Money and Property
INVESTMENT INTEREST 2,035 1,410 1,410 -0.0%
Revenues/Other Sources 7,703 6,943 6,943 -0.0%
Expenditures by Category
OPERATIONS & MAINTENANCE 274 2,434 10,434 8,000 328.7%
Expenditures/Other Financing Uses 274 2,434 10,434 8,000 328.7% Net Revenues 7,429 4,509 (3,491)(8,000)85.3%
Fund Balance, Beginning of Year 40,123 47,551 52,060 4,509 9.5% Fund Balance, End of Year 47,551 52,060 48,569 (3,491)-6.7% Fund Description
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 remain flat at $6,943. Expenditures of $10,434 represent a 328.7% increase over the prior year, which includes an increased allocation for emergency street maintenance. Expenditures reflect the maintenance costs of Leifer Road and other unpaved roads in the area. The ending fund balance is projected at $48,569, a decrease of 6.7% from the prior year. 336

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
116 | Annual Operating Budget
196 - TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
HARVESTON LAKE BOAT REVENUE 1,500 7,500 7,500 -0.0%
ASSESSMENTS 257,481 259,318 261,911 2,593 1.0%
Use of Money and Property
INVESTMENT INTEREST 17,861 12,023 12,023 -0.0%
Miscellaneous
MISCELLANEOUS 10,095 9,000 6,000 (3,000)-33.3%
Revenues/Other Sources 286,937 287,841 287,434 (407)-0.1% Expenditures by Category
SALARIES & BENEFITS 13,319 14,976 14,364 (611)-4.1%
OPERATIONS & MAINTENANCE 288,123 361,600 356,000 (5,600)-1.5% Expenditures/Other Financing Uses 301,441 376,576 370,364 (6,211)-1.6% Net Revenues (14,504)(88,735)(82,931)5,804 -1.0%
Fund Balance, Beginning of Year 372,780 358,276 269,541 (88,735)-24.8% Fund Balance, End of Year 358,276 269,541 186,610 (82,931)-30.8% Fund Description
Service Level L Fund reflects the benefit assessments charged to property owners for the purpose of maintaining the Harveston Lake Park.

Expenditures include operational, administrative and maintenance costs.

Analysis/Comments
Service Level L revenue is projected to decrease 0.1%, with a 1.0% increase in Assessments offset by a 33.3% decrease in Miscellaneous revenue related to fishing permits at Harveston Lake. Expenditures are projected to decrease 1.6% due to a reduction in Operations & Maintenance costs. The ending fund balance is projected at $186,610, a decrease of 30.8% from the prior year. 337

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 117
197 - TEMECULA LIBRARY FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
PRINTING & COPIES 12,176 13,442 13,442 -0.0%
Fines and Forfeitures
FINES & FORFEITURES 11,997 10,178 10,178 -0.0%
Use of Money and Property
LEASE/RENTAL INCOME 14,538 16,540 16,540 -0.0%
INVESTMENT INTEREST 14,805 9,124 9,124 -0.0%
Reimbursements
OTHER REIMBURSEMENTS -150 -(150)-100.0%
Operating Transfers In
CONTRIBUTION FROM MEASURE S 1,127,563 1,308,073 1,774,877 466,804 35.7% Revenues/Other Sources 1,181,079 1,357,507 1,824,161 466,654 34.4% Expenditures by Category
SALARIES & BENEFITS 282,939 345,661 298,756 (46,905)-13.6% OPERATIONS & MAINTENANCE 517,259 583,961 766,742 182,781 31.3% INTERNAL SERVICE FUND ALLOCATIONS 381,529 541,414 758,663 217,249 40.1% CAPITAL OUTLAY -41,150 -(41,150)-100.0%
Expenditures/Other Financing Uses 1,181,727 1,512,186 1,824,161 311,975 20.6% Net Revenues (649)(154,679)-154,679 27.1%
Fund Balance, Beginning of Year 255,327 254,678 100,000 (154,679)-60.7% Fund Balance, End of Year 254,678 100,000 100,000 -0.0% 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. Library revenues are projected to increase 34.4% over the prior year, driven by a 35.7% increase in the Contribution from Measure S ($466,804). All other revenue sources are held flat.

Library expenditures are projected to increase 20.6%, primarily due to the increase in contractual services with Riverside County to provide library services, and a 40.1% increase in Internal Service Fund Allocations related to the increase in technology devices allocated to the Library. These increases are partially offset by a 13.6% decrease in Salaries & Benefits and a 100.0% reduction in Capital Outlay. The ending fund balance is projected at $100,000, unchanged from the prior year. 338

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
118 | Annual Operating Budget
FUNDS 501-530 SERVICE LEVEL C - LANDSCAPE / SLOPE MAINTENANCE Description
2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
ASSESSMENTS 1,589,964 1,593,048 1,594,276 1,228 0.1%
Use of Money and Property
INVESTMENT INTEREST 94,724 62,954 62,954 -0.0%
Revenues/Other Sources 1,684,688 1,656,002 1,657,230 1,228 0.1% Expenditures by
Category
OPERATIONS & MAINTENANCE 1,526,293 1,668,781 1,733,047 64,266 3.9% TRANSFERS 39,117 692 -(692)-100.0%
Expenditures/Other Financing
Uses 1,565,410 1,669,473 1,733,047 63,574 3.8%
Net Revenues 119,278 (13,470)(75,817)(62,347)462.8%
Fund Balance, Beginning of Year 2,080,849 2,200,127 2,186,656 (13,470)-0.6% Fund Balance, End of Year 2,200,127 2,186,656 2,110,839 (75,817)-3.5% Fund Description
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 increase slightly due to an increase in assessments within two zones. FY26-27 expenditures will increase by

3.8% due to increased landscape and maintenance costs.
339

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 119
Successor Agency to the Temecula Redevelopment Agency (SARDA) 340

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
120 | Annual Operating Budget
SARDA – Fund Summary
380 - SARDA DEBT SERVICE FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Taxes and Franchises

REDEVELOPMENT PROPERTY TAX FUND
DISTRIBUTION -6,959,359 6,243,697 (715,662)-10.3%
Use of Money and Property
INVESTMENT INTEREST 195,373 165,629 165,629 -0.0%
Operating Transfers In
OPERATING TRANSFERS IN 8,267,538 ---0.0%
Revenues/Other Sources 8,462,911 7,124,988 6,409,326 (715,662)-10.0% Expenditures by Category
OPERATIONS & MAINTENANCE 1,566,993 1,548,261 1,548,261 -0.0% DEBT SERVICE - PRINCIPAL -2,980,000 3,125,000 145,000 4.9% DEBT SERVICE - INTEREST 2,746,135 2,628,394 2,499,197 (129,197)-4.9% TRANSFERS 250,000 250,000 250,000 -0.0%
Expenditures/Other Financing Uses 4,563,128 7,406,655 7,422,458 15,803 0.2% Net Revenues 3,899,782 (281,667)(1,013,132)(731,465)-4.8% Fund Balance, Beginning of Year (34,291,959)(30,392,177)(30,673,844)(281,667)-0.9% Fund Balance, End of Year (30,392,177)(30,673,844)(31,686,976)(1,013,132)-3.3% 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. Redevelopment Property Tax Fund Distribution is projected to decrease 10.3% to $6.2 million. Debt Service expenditures are for the 2017A and 2017B Tax Allocation Refunding Bonds, with principal payments increasing 4.9% and interest payments decreasing 4.9%.
341

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 121
Internal Service Funds
342

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
122 | Annual Operating Budget
Internal Service Funds –Revenue Detail

REVENUE DETAIL

INTERNAL SERVICE FUNDS
Description 2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
% Increase/
Decrease
300 - INSURANCE FUND
4065 INVESTMENT INTEREST 88,119 52,725 52,725 - 0.0%
4176 CHARGES FOR SERVICES 3,356,143 3,800,317 3,838,929 38,612 1.0% 4545 GASB 31 - FMV ON INVESTMENTS 9,601 - - - 0.0%
6001 TRANSFER IN FROM GENERAL FUND 1,172,672 - - - 0.0% TOTAL INSURANCE FUND 4,626,534 3,853,042 3,891,654 38,612 1.0% 305 - WORKERS' COMPENSATION FUND
4065 INVESTMENT INTEREST 37,527 29,354 29,354 - 0.0%
4176 CHARGES FOR SERVICES 697,813 598,244 300,695 (297,549) -49.7% 4545 GASB 31 - FMV ON INVESTMENTS 6,314 - - - 0.0%
6001 TRANSFER IN FROM GENERAL FUND 436,678 - - - 0.0%
TOTAL WORKERS' COMPENSATION FUND 1,178,332 627,598 330,049 (297,549) -47.4% 310 - VEHICLES AND EQUIPMENT FUND
4065 INVESTMENT INTEREST 150,365 119,763 119,763 - 0.0% 4176 CHARGES FOR SERVICES 475,657 511,907 555,949 44,042 8.6% 4545 GASB 31 - FMV ON INVESTMENTS 19,994 - - - 0.0%
TOTAL VEHICLES AND EQUIPMENT FUND 646,016 631,670 675,712 44,042 7.0% 320 - INFORMATION TECHNOLOGY FUND
4065 INVESTMENT INTEREST 24,999 25,533 25,533 - 0.0%
4176 CHARGES FOR SERVICES 6,092,741 6,802,193 6,741,283 (60,910) -0.9% 4545 GASB 31 - FMV ON INVESTMENTS 8,668 - - - 0.0%
6002 TRANSFER IN FROM MEASURE S FUND 300,000 300,000 300,000 - 0.0% TOTAL INFORMATION TECHNOLOGY FUND 6,426,408 7,127,726 7,066,816 (60,910) -0.9% 325 - TECHNOLOGY REPLACEMENT FUND
4065 INVESTMENT INTEREST 157,614 119,388 119,388 - 0.0% 4176 CHARGES FOR SERVICES 229,987 321,333 236,935 (84,398) -26.3% 4545 GASB 31 - FMV ON INVESTMENTS 15,715 - - - 0.0%
6320 TRANSFER IN FROM INFORMATION
TECHNOLOGY FUND 1,748,615 - - - 0.0%
TOTAL TECHNOLOGY REPLACEMENT FUND 2,151,931 440,721 356,323 (84,398) -19.1% 343

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 123

REVENUE DETAIL

INTERNAL SERVICE FUNDS
Description 2024-2025
Actuals
2025-2026
Current Budget
2026-2027
Proposed Budget
Increase/
(Decrease)
% Increase/
Decrease
330 - SUPPORT SERVICES FUND
4065 INVESTMENT INTEREST 348 321 321 - 0.0%
4176 CHARGES FOR SERVICES 382,179 465,880 447,379 (18,501) -4.0% 4545 GASB 31 - FMV ON INVESTMENTS 90 - - - 0.0%
TOTAL SUPPORT SERVICES FUND 382,617 466,201 447,700 (18,501) -4.0% 335 - SUPPORT SERVICES REPLACEMENT FUND
4065 INVESTMENT INTEREST 15,735 12,729 12,729 - 0.0%
4176 CHARGES FOR SERVICES 24,263 30,881 24,990 (5,891) -19.1% 4545 GASB 31 - FMV ON INVESTMENTS 2,130 - - - 0.0%
TOTAL SUPPORT SERVICES REPLACEMENT FUND 42,128 43,610 37,719 (5,891) -13.5% 340 - FACILITIES FUND
4065 INVESTMENT INTEREST 14,188 18,000 18,000 - 0.0%
4076 REIMBURSEMENTS 24,000 24,000 - (24,000) -100.0%
4176 CHARGES FOR SERVICES 1,643,743 1,632,946 1,743,841 110,895 6.8% 4545 GASB 31 - FMV ON INVESTMENTS 4,460 - - - 0.0%
TOTAL FACILITIES FUND 1,686,391 1,674,946 1,761,841 86,895 5.2% 350 - FACILITIY REPLACEMENT FUND
4065 INVESTMENT INTEREST 158,532 111,755 111,755 - 0.0% 4176 CHARGES FOR SERVICES 117,020 121,550 223,810 102,260 84.1% 4545 GASB 31 - FMV ON INVESTMENTS 12,644 - - - 0.0%
6002 TRANSFER IN FROM MEASURE S FUND 2,500,000 1,250,000 2,500,000 1,250,000 100.0% 6340 TRANSFER IN FROM FACILITIES FUND 606,326 - - - 0.0% TOTAL FACILITY REPLACEMENT FUND 3,394,522 1,483,305 2,835,565 1,352,260 91.2% 344

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
124 | Annual Operating Budget
Internal Service Funds – Fund Summaries
300 - INSURANCE FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 3,356,143 3,800,317 3,838,929 38,612 1.0% Use of Money and Property
INVESTMENT INTEREST 97,719 52,725 52,725 -0.0%
Operating Transfers In
OPERATING TRANSFERS IN 1,172,672 ---0.0%
Revenues/Other Sources 4,626,534 3,853,042 3,891,654 38,612 1.0% Expenditures by Category
SALARIES & BENEFITS 215,356 273,382 243,130 (30,252)-11.1% OPERATIONS & MAINTENANCE 3,140,788 3,476,935 3,648,524 171,589 4.9% Expenditures/Other Financing Uses 3,356,143 3,750,317 3,891,654 141,337 3.8% Net Revenues 1,270,391 102,725 -(102,725)2.4%
Fund Balance, Beginning of Year 1,189,713 2,460,104 2,562,829 102,725 4.2% Fund Balance, End of Year 2,460,104 2,562,829 2,562,829 -0.0% 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
Insurance Fund revenues are projected to increase 1.0% over the prior year, driven by a 1.0% increase in Charges for Services. Investment interest earnings are held flat at $52,725. Expenditures are projected to increase 3.8%, primarily due to a 4.9% increase in Operations & Maintenance reflecting higher insurance premiums. Salaries & Benefits are decreasing 11.1%. The ending fund balance is projected at $2.6 million, unchanged from the current year, maintaining the City's target of three times the $500,000 Self-Insured Retention. 345

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 125
305 - WORKERS' COMPENSATION FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 697,813 598,244 300,695 (297,549)-49.7% Use of Money and Property
INVESTMENT INTEREST 43,842 29,354 29,354 -0.0%
Operating Transfers In
OPERATING TRANSFERS IN 436,678 ---0.0%
Revenues/Other Sources 1,178,332 627,598 330,049 (297,549)-47.4% Expenditures by Category
SALARIES & BENEFITS 200,224 273,564 243,640 (29,924)-10.9% OPERATIONS & MAINTENANCE 349,407 422,272 383,605 (38,667)-9.2% Expenditures/Other Financing Uses 549,631 695,835 627,245 (68,590)-9.9% Net Revenues 628,701 (68,238)(297,197)(228,959)-27.7%
Fund Balance, Beginning of Year 1,047,326 1,676,027 1,607,789 (68,238)-4.1% Fund Balance, End of Year 1,676,027 1,607,789 1,310,593 (297,197)-18.5% 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
Workers' Compensation Fund revenues are projected to decrease 47.4% from the prior year, primarily due to a 49.7% decrease in Charges for Services as the fund draws down existing fund balance. Investment interest earnings are held flat at $29,354. Expenditures are projected to decrease 9.9%, including a 10.9% decrease in Salaries & Benefits and a 9.2% decrease in Operations & Maintenance. The ending fund balance is projected at $1.3 million, a decrease of 18.5% from the prior year, which remains below the desired Net Position of $1.5 million. 346

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
126 | Annual Operating Budget
310 - VEHICLES AND EQUIPMENT FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 475,657 511,907 555,949 44,042 8.6% Use of Money and Property
INVESTMENT INTEREST 170,359 119,763 119,763 -0.0%
Revenues/Other Sources 646,016 631,670 675,712 44,042 7.0% Expenditures by Category
OPERATIONS & MAINTENANCE 378,379 429,527 429,527 -0.0%
CAPITAL OUTLAY 495 506,451 495,000 (11,451)-2.3%
Expenditures/Other Financing Uses 378,874 935,978 924,527 (11,451)-1.2% Net Revenues 267,141 (304,308)(248,815)55,493 2.1%
Fund Balance, Beginning of Year 5,405,642 5,672,783 5,368,475 (304,308)-5.4% Fund Balance, End of Year 5,672,783 5,368,475 5,119,660 (248,815)-4.6% 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
Vehicles and Equipment Fund revenues are projected to increase 7.0%, driven by an 8.6% increase in Charges for Services. Investment interest earnings are held flat at $119,763. Expenditures are projected to decrease 1.2%, with Operations & Maintenance held flat and a 2.3% decrease in Capital Outlay. Capital Outlay of $495,000 includes the replacement of a Construction Dump Truck, a Backhoe, two Ford F-250s, and one Ford F-350 that have reached the end of their useful life. The ending fund balance is projected at $5.1 million, a decrease of 4.6% from the prior year.
347

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 127
320 - INFORMATION TECHNOLOGY FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service Charges
CHARGES FOR SERVICES 6,092,741 6,802,193 6,741,283 (60,910)-0.9% Use of Money and Property
INVESTMENT INTEREST 33,667 25,533 25,533 -0.0%
Operating Transfers In
CONTRIBUTION FROM MEASURE S 300,000 300,000 300,000 -0.0% Revenues/Other Sources 6,426,408 7,127,726 7,066,816 (60,910)-0.9% Expenditures by Category
SALARIES & BENEFITS 2,937,030 3,202,901 3,111,541 (91,360)-2.9% OPERATIONS & MAINTENANCE 3,489,377 3,724,017 3,955,275 231,258 6.2% CAPITAL OUTLAY (396,398)---0.0%
TRANSFERS 1,748,615 ---0.0%
Expenditures/Other Financing Uses 7,778,625 6,926,918 7,066,816 139,898 2.0% Net Revenues (1,352,217)200,808 -(200,808)0.6%
Fund Balance, Beginning of Year 2,390,214 1,037,997 1,238,806 200,808 19.3% Fund Balance, End of Year 1,037,997 1,238,806 1,238,806 -0.0% Fund Description
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
Information Technology Fund revenues are projected to decrease 0.9% from the current year, driven by a 0.9% decrease in Charges for Services.

The Contribution from Measure S remains flat at $300,000. Expenditures are projected to increase 2.0%, with a 2.9% decrease in Salaries & Benefits offset by a 6.2% increase in Operations & Maintenance expenses. The ending fund balance is projected at $1.2 million, unchanged from the prior year.
348

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
128 | Annual Operating Budget
325 - TECHNOLOGY REPLACEMENT FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 229,987 321,333 236,935 (84,398)-26.3% Use of Money and Property
INVESTMENT INTEREST 173,329 119,388 119,388 -0.0%
Operating Transfers In
OPERATING TRANSFERS IN 1,748,615 ---0.0%
Revenues/Other Sources 2,151,931 440,721 356,323 (84,398)-19.1% Expenditures by Category
OPERATIONS & MAINTENANCE 231,684 151,158 151,158 -0.0%
CAPITAL OUTLAY 3,500 319,552 325,000 5,448 1.7%
TRANSFERS 157,724 543,782 50,000 (493,782)-90.8%
Expenditures/Other Financing Uses 392,908 1,014,491 526,158 (488,333)-48.1% Net Revenues 1,759,023 (573,771)(169,835)403,935 -39.4% Fund Balance, Beginning of Year 3,106,290 4,865,314 4,291,543 (573,771)-11.8% Fund Balance, End of Year 4,865,314 4,291,543 4,121,708 (169,835)-4.0% Fund Description
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
Technology Replacement Fund revenues are projected to decrease 19.1%, driven by a 26.3% decrease in Charges for Services. Investment interest earnings are held flat at $119,388. Expenditures are projected to decrease 48.1%, primarily due to the reduction in Transfers. Capital Outlay of $325,000 is budgeted for the replacement of the City's computers, network switch, and phone system. The ending fund balance is projected at $4.1 million, a decrease of 4.0% from the prior year. 349

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 129
330 - SUPPORT SERVICES FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 382,179 465,880 447,379 (18,501)-4.0% Use of Money and Property
INVESTMENT INTEREST 438 321 321 -0.0%
Revenues/Other Sources 382,617 466,201 447,700 (18,501)-4.0% Expenditures by Category
SALARIES & BENEFITS 260,700 312,201 308,700 (3,500)-1.1% OPERATIONS & MAINTENANCE 121,917 134,000 139,000 5,000 3.7% Expenditures/Other Financing Uses 382,617 446,201 447,700 1,500 0.3% Net Revenues (1)20,000 (1)(20,001)-1.9%
Fund Balance, Beginning of Year 145 144 20,144 20,000 13875.3% Fund Balance, End of Year 144 20,144 20,143 (1)0.0%
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
Support Services Fund revenues are projected to decrease 4.0%, driven by the decrease in Charges for Services. Expenditures are projected to increase 0.3%, with a 1.1% decrease in Salaries & Benefits offset by a 3.7% increase in Operations & Maintenance. The ending fund balance is projected at $20,143, essentially unchanged from the prior year. 350

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
130 | Annual Operating Budget
335 - SUPPORT SERVICES REPLACEMENT FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 24,263 30,881 24,990 (5,891)-19.1% Use of Money and Property
INVESTMENT INTEREST 17,865 12,729 12,729 -0.0%
Revenues/Other Sources 42,128 43,610 37,719 (5,891)-13.5% Expenditures by Category
OPERATIONS & MAINTENANCE 1,597 42,200 42,200 -0.0%
CAPITAL OUTLAY 1,235 30,000 30,000 -0.0%
Expenditures/Other Financing Uses 2,832 72,200 72,200 -0.0% Net Revenues 39,296 (28,590)(34,481)(5,891)-5.1%
Fund Balance, Beginning of Year 385,998 425,293 396,703 (28,590)-6.7% Fund Balance, End of Year 425,293 396,703 362,222 (34,481)-8.7% Fund Description
The Support Services Replacement Fund was established to accumulate resources for the future replacement of the City's duplicating equipment.

Analysis/Comments
Support Services Replacement Fund revenues are projected to decrease 13.5%, driven by a 19.1% decrease in Charges for Services.

Expenditures are projected to remain flat at $72,200, including funding for the annual replacement of the City's copiers. The ending fund balance is projected at $362,222, a decrease of 8.7% from the prior year. 351

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 131
340 - FACILITIES FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 1,643,743 1,632,946 1,743,841 110,895 6.8% Use of Money and Property
INVESTMENT INTEREST 18,648 18,000 18,000 -0.0%
Reimbursements
OTHER REIMBURSEMENTS 24,000 24,000 -(24,000)-100.0%
Revenues/Other Sources 1,686,391 1,674,946 1,761,841 86,895 5.2% Expenditures by Category
SALARIES & BENEFITS 617,234 759,844 834,816 74,972 9.9% OPERATIONS & MAINTENANCE 1,045,157 936,260 922,025 (14,235)-1.5% TRANSFERS 606,326 ---0.0%
Expenditures/Other Financing Uses 2,268,717 1,696,104 1,756,842 60,738 3.6% Net Revenues (582,326)(21,158)5,000 26,157 4.4%
Fund Balance, Beginning of Year 606,326 24,000 2,842 (21,158)-88.2% Fund Balance, End of Year 24,000 2,842 7,842 5,000 175.9% 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
Facilities Fund revenues are projected to increase 5.2% over the prior year, driven by a 6.8% increase in Charges for Services, partially offset by the elimination of Other Reimbursements. Expenditures are projected to increase 3.6%, including a 9.9% increase in Salaries & Benefits offset by a 1.5% decrease in Operations & Maintenance. The ending fund balance is projected at $7,842, an increase over the prior year. 352

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
132 | Annual Operating Budget
350 - FACILITY REPLACEMENT FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
CHARGES FOR SERVICES 117,020 121,550 223,810 102,260 84.1% Use of Money and Property
INVESTMENT INTEREST 171,176 111,755 111,755 -0.0%
Operating Transfers In
OPERATING TRANSFERS IN 606,326 ---0.0%
CONTRIBUTION FROM MEASURE S 2,500,000 1,250,000 2,500,000 1,250,000 100.0% Revenues/Other Sources 3,394,522 1,483,305 2,835,565 1,352,260 91.2% Expenditures by Category
OPERATIONS & MAINTENANCE 81,875 87,338 87,338 -0.0%
CAPITAL OUTLAY 21,920 -358,096 358,096 100.0%
TRANSFERS 483,211 3,239,183 1,500,000 (1,739,183)-53.7% Expenditures/Other Financing Uses 587,006 3,326,521 1,945,434 (1,381,087)-41.5% Net Revenues 2,807,516 (1,843,216)890,131 2,733,347 -0.6% Fund Balance, Beginning of Year 2,644,255 5,451,771 3,608,555 (1,843,216)-33.8% Fund Balance, End of Year 5,451,771 3,608,555 4,498,686 890,131 24.7% 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 Facility Replacement Fund is augmented with a $2.5 million contribution from Measure S, a 100.0% increase over the current year, in order to accumulate resources to replace City facilities. Charges for Services are increasing 84.1%. Total revenues are projected to increase 91.2%.

Expenditures are projected to decrease 41.5%, primarily due to the reduction of Transfers to the Capital Improvement Program. Capital Outlay of $358,096 is budgeted for the replacement of the City’s Theater sound system. The ending fund balance is projected at $4.5 million, an increase of 24.7% over the prior year.
353

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 133
Capital Improvement Program Fund
354

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
134 | Annual Operating Budget
CIP – Fund Summary
210 - CAPITAL IMPROVEMENT PROGRAM FUND
Description
2024-2025
Actuals
2025-2026
Current
Budget
2026-2027
Proposed
Budget
Increase/
(Decrease)
%
Increase/
Decrease
Revenues by Source
Licenses, Permits and Service
Charges
QUIMBY FEES 690,517 2,923,233 500,000 (2,423,233)-82.9% DEVELOPMENT IMPACT FEES 4,093,069 10,258,563 5,720,931 (4,537,632)-44.2% Intergovernmental Revenues
GRANTS 706,494 3,547,034 2,000,000 (1,547,034)-43.6%
Reimbursements
CAPITAL IMPROVEMENT PROGRAM 42,171,975 65,710,188 -(65,710,188)-100.0% OTHER REIMBURSEMENTS -(1,523,304)-1,523,304 -100.0%
Operating Transfers In
OPERATING TRANSFERS IN 5,796,035 54,652,877 7,467,233 (47,185,644)-86.3% CONTRIBUTION FROM MEASURE S 10,597,215 32,687,242 4,296,247 (28,390,995)-86.9% Revenues/Other Sources 64,055,305 168,255,832 19,984,411 (148,271,421)-88.1% Expenditures by Category
CIP 62,478,484 171,056,022 20,537,261 (150,518,761)-88.0% Expenditures/Other Financing Uses 62,478,484 171,056,022 20,537,261 (150,518,761)-88.0% Net Revenues 1,576,821 (2,800,189)(552,850)2,247,339 -88.1% Fund Balance, Beginning of Year 9,244,218 10,821,039 8,020,849 (2,800,189)-25.9% Fund Balance, End of Year 10,821,039 8,020,849 7,467,999 (552,850)-6.9% 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. FY2026-27 revenues are projected at $20.0 million, a decrease of 88.1% from the prior year, reflecting reduced contributions from Measure S (-86.9%), Operating Transfers In (-

86.3%), and the reduction in Capital Improvement Program reimbursements. CIP expenditures of $20.5 million represent an 88.0% decrease from the piror year. Many projects are programmed in their initial year and, if not completed, the funds are rolled forward to the subsequent year. The ending fund balance is projected at $7.5 million, a decrease of 6.9% from the prior year. 355

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 135
Performance Measures

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, 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.

This plan was developed by engaging residents, businesses, local institutions,and regional partners 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:

Healthy & Livable City
Economic Prosperity
Safe & Prepared Community
Sustainable & Resilient City
Transportation Mobility & Connectivity
Accountable & Responsive City Government
Equity
P5T 4bA#y5by
Healthy &Livable City
Economic Prosperity
Safe &Prepared Community
Sustainable & Resilient City
Transportation Mobility &Connectivity
Accountable &Responsive City Government
Equity
356

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
136 | Annual Operating Budget

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
CITY COUNCIL Go to Department Section
Be a sustainable community that embraces
residents’ quality of life
Resident satisfaction with Temecula's crime rate,
based on citizen survey 83.2 85% 80-90%
Ensure transparency in all aspects of City
government Number of City Council committee assignments 53 50-60 50-60 Foster a healthy environment and prosperous
opportunities for all residents of Temecula
Number of projects completed from the Quality
of Life Master Plan 5 2 10
CITY COUNCIL - COMMUNITY SUPPORT Go to Department Section Value the growth of non-profit organizations,
churches, temples, mosques, and other places
of worship
Number of nonprofit organizations awarded
grants through the Community Service Funding
and the City Council Grant Programs
33 25-30 25-35
Value the growth of non-profit organizations,
churches, temples, mosques, and other places
of worship
Total funding awarded to support nonprofit
programs through the Community Service
Funding and City Council Grant Programs
$107,500 $125,000 $125,000
CITY MANAGER Go to Department Section
Exhaust all methods of communication and
outreach between the City and its residents
Number of public outreach messages, advisories,
press releases or posts (in print or electronically)
shared with the community containing City
information
1650 1,400-
1,800
1,400-
1,800
Remain one of the safest cities in California
and the nation
Percentage of annual budget that supports fire,
police, first responders, and associated
infrastructure/technology, for the safety and
protection of Temecula citizens and businesses
56%Greater
than 50%
Greater
than 50%
Develop community resiliency in
infrastructure, the economy, natural
resources, and hazard mitigation
Number of agreements and contracts reviewed
and signed Citywide to maintain, promote and
preserve City assets/infrastructure
421 350-400 350-450
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Number of City Council Agendas developed and
brought forward with policies, programs or
projects supported by the City Council for the
long-term solvency of the City of Temecula
24 20-24 20-24
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
357

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 137

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT Go to Department Section Be a sustainable community that embraces
residents’ quality of life
Leading City efforts to attract and build higher
education hub (MSJC and CSUSM), measured by
engagements
2 2 2
Provide an entrepreneurial culture that offers
a growing number of diverse high-paying jobs
Number of local business site visits, meetings
and ribbon cuttings (to foster business
relationships)
69 40-50 40-50
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 271 75 75 Ensure transparency in all aspects of City
government
Citywide social media posts - number of posts
across all platforms (Facebook, Instagram and
Twitter) within one week
832 5 750-850
CITY CLERK Go 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 WebQA requests 1,263 1,277 1,600 Ensure transparency in all aspects of City
government
Percentage of Public Records Act requests
processed in statutory time period 100% 100% 100%
Ensure transparency in all aspects of City
government
Number of Council, Board, Committee,
Commission, and employee positions for annual
Conflict of Interest filings
76 68 60
Ensure transparency in all aspects of City
government
Percentage of open meeting / Public Notices
published on or before statutory time period 100% 100% 100% Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
358

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
138 | Annual Operating Budget

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Percentage of positions cross-trained for
departmental coverage 100% 100% 100%
FINANCE Go to Department Section
Promote job growth in Temecula and nearby
areas Number of business licenses issued 7,764 8,000 8,000 Promote innovation and adopt technology
that enhances access to information and data Percentage of online business license renewals 78% 85% 85% Promote innovation and adopt technology
that enhances access to information and data
Number of invoices processed via electronic
payment 8,435 7,000 8,000
Promote innovation and adopt technology
that enhances access to information and data
Number of vendors receiving electronic
payments versus paper checks 1,401 500 1,500
HUMAN RESOURCES - MANAGEMENT Go to Department Section Promote innovation and adopt technology
that enhances access to information and data
Number of HR processes converted from manual
or paper-based workflows to electronic
workflows within the HRIS
NEW NEW 15
Maintain a flexible organization which
responds to the changing needs and priorities
of the community
Average number of days from opening of
recruitment to hire 81 70 80
Provide consistently professional services and
information to customers and constituents
Percentage of employees receiving professional
development and training (includes mandatory
training)
70% 90% 90%
Ensure transparency in all aspects of City
government
Number of employment-related policies or
guidelines created or revised 133
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
359

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 139

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Be a diverse community that values and
supports people of all ages, backgrounds,
cultures, disabilities, and religious beliefs
Number of new employee benefit programs
offered that support different life stages NEW NEW 2
HUMAN RESOURCES - RISK MANAGEMENT Go to Department Section Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Percentage of interactive process meetings held
for workers' compensation injuries for
employees off work or on modified duty
100% 100% 100%
Support healthy and active lifestyles
Percentage of employees participating in
wellness programs (mental health support,
fitness challenges, financial wellness, etc.)
45% 65% 65%
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Number of safety-related programs created or
revised 2 3 2
COMMUNITY DEVELOPMENT - CURRENT PLANNING & PERMIT CENTER Go to Department Section Provide consistently professional services and
information to customers and constituents
Average customer service wait times (in
minutes) for Building and Safety transactions
9 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

7.4 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
public inquiry response time for Planning 1 Less than
2 Less than
2 Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Percentage of Building Permits issued within 30
days 73% 75 75
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of days from application to
issuance for Building Permits 28 30 30
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
360

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
140 | Annual Operating Budget

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of business days for Planning
Case Reviews 23 21 21
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of business days for submittal
reviews for Temporary Use Permits 31 14 14
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of business days for submittal
reviews for Massage 12 21 21
COMMUNITY DEVELOPMENT - LONG RANGE PLANNING Go to Department Section Be a diverse community that values and
supports people of all ages, backgrounds,
cultures, disabilities and religious beliefs
Number of Housing Element Programs
completed 4 4 4
Establish a connected pedestrian, bicycle and
equestrian transportation system Number of miles of bike lanes striped 1.25 2 2 COMMUNITY DEVELOPMENT - BUILDING & SAFETY Go to Department Section Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of business days for online
public inquiry response for Building and Safety 1 2 2
Maintain a flexible organization which
responds to the changing needs and priorities
of the community
Average number of business days for inspection
delay for Building and Safety 1 2 2
Promote innovation and adopt technology
that enhances access to information and data
Percentage of online Building and Safety
transactions 76% 75% 75%
Maintain a flexible organization which
responds to the changing needs and priorities
of the community
Number of inspections per person, per day 30 20 12
COMMUNITY DEVELOPMENT - CODE ENFORCEMENT Go to Department Section Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
361

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 141

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Promote innovation and adopt technology
that enhances access to information and data
Average number of business days for response
time of online public inquiries for Code
Enforcement
132
Provide effective enforcement of City zoning,
building, fire and grading codes, and graffiti
abatement
Number of hours for turnaround time for graffiti
abatement 168 48 48
Provide effective enforcement of City zoning,
building, fire and grading codes, and graffiti
abatement
Average number of business days for Code Case
time open 48 30 30
SARDA Go to Department Section
Be a diverse community that values and
supports people of all ages, backgrounds,
cultures, disabilities and religious beliefs
Number of agreements with an affordable
housing developer for the use of available Tax
Allocation Bond proceeds
111
COMMUNITY DEVELOPMENT - CDBG Go to Department Section Ensure transparency in all aspects of City
government
Number of objectives completed for the Five-
Year Consolidated Plan 444
Ensure transparency in all aspects of City
government Number of HUD timeliness tests met 1 1 1
COMMUNITY DEVELOPMENT - ADMINISTRATION Go to Department Section Ensure transparency in all aspects of City
government
Average number of days to fulfill records
requests for Community Development Divisions 81212
PUBLIC WORKS - LAND DEVELOPMENT Go to Department Section Provide consistently professional services and
information to customers and constituents
Average of business days to complete 1st plan
check 13 13 13
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
362

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
142 | Annual Operating Budget

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Provide consistently professional services and
information to customers and constituents
Percentage of development inspections
completed within 48 hours of requested time 90% 90% 90% Provide consistently professional services and
information to customers and constituents
Percentage of QLess appointments staff
responds to within 5 minutes of scheduled time 90% 90% 90% PUBLIC WORKS - TRAFFIC ENGINEERING Go to Department Section Remain one of the safest cities in California
and the nation
Percentage of citizen requests staff responds to
within 5 business days 95% 95% 95%
Remain one of the safest cities in California
and the nation
Percentage of traffic call-outs staff responds to
within 2 hours to resolve traffic signal
malfunctions
95% 95% 95%
Maintain and improve our roadway network Average number of business days to complete first plan check of traffic control plans 10 10 10
PUBLIC WORKS - STREET MAINTENANCE Go to Department Section Be a sustainable community that embraces
residents’ quality of life Total number of street trees trimmed each year 2,025 3,050 2,500 Provide effective enforcement of City zoning,
building, fire and grading codes, and graffiti
abatement
Percentage of graffiti reports completed within
24 hours 95% 95% 95%
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Total number of storm drain inlets
inspected/cleaned 2,613 3,500 3,000
Maintain and improve our roadway network Total number of street signs replaced, repaired and installed 1,882 1,300 1,500
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
363

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 143

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Maintain and improve our roadway network Total square feet of asphalt repairs completed each year 39,000 100,000 70,000
Maintain and improve our roadway network Total linear feet of traffic lanes, bike lanes & curbs painted 2,700,000 3,430,530 4,000,000
PUBLIC WORKS - CAPITAL IMPROVEMENT PROGRAM Go to Department Section Ensure transparency in all aspects of City
government
Percentage of projects completed on schedule
and within budget 90% 90% 90%
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Total lane miles of pavement rehabilitation
projects completed each year 10 10 10
PUBLIC WORKS - FACILITY MAINTENANCE Go to Department Section Be the most sustainable city in Southern
California
Number of facility energy efficiency upgrades
performed each year 10 10 10
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of facility service order requests
completed each year 1,000 2,000 2,000
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 6,000 3,200 4,000
Be the most sustainable city in Southern
California
Average number of park site energy efficiency
lighting system conversions each year 666
Provide consistently professional services and
information to customers and constituents
Average number of parks maintenance service
order requests completed each year 1,450 1,500 1,500
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
364

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
144 | Annual Operating Budget

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of City park rehabilitation and
repair projects completed each year 6 6 6
PUBLIC WORKS - STORMWATER Go to Department Section
Be a sustainable community that embraces
residents’ quality of life
Percentage of trash capture devices installed.

Goal is 150 devices per year, across five phases 80% 85% 100% Be a sustainable community that embraces
residents’ quality of life
Percentage of City businesses inspected annually
to verify permit requirements and stormwater
pollution compliance
80% 95% 95%
Be a sustainable community that embraces
residents’ quality of life
Percentage of Stormwater Best Management
Practices (BMPs) inspected annually to ensure
these devices are functioning and effective
70% 70% 80%
SHERIFF’S OFFICE - ADMINISTRATION Go to Department Section Remain one of the safest cities in California
and the nation
Number of management team with Advanced
Incident Command System training 7 7 8
Provide consistently professional services and
information to customers and constituents
Number of fingerprint cards and live scans taken
at the mall and substation 3,208 4,500 4,000
SHERIFF’S OFFICE - INVESTIGATIONS/SPECIAL TEAMS Go to Department Section Remain one of the safest cities in California
and the nation Reduce property crimes Reduced
by 18%
Reduce by
10%
Reduce by
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 3 20 20 Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
365

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 145

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Maintain and improve our roadway network Number of DUI arrests 346 500 500 Maintain and improve our roadway network Number of traffic collision investigations 716 700 675 SHERIFF’S OFFICE - PATROL SERVICES Go to Department Section Be a sustainable community that embraces
residents’ quality of life Number of overall calls for Police service 64,868 85,000 80,000 Remain one of the safest cities in California
and the nation
Percentage of patrol officers maintaining 24-
hour perishable skills training 55% 100% 100%
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Average response time (in minutes) for priority 1
calls from the time it is dispatched to the time
officers arrive

6.1 4.0 5
FIRE - EMERGENCY MANAGEMENT Go to Department Section Support community oriented policing and
maximize community leadership in public
safety
Number of community outreach events
conducted 17 10 12
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Percentage of employees assigned to the
Incident Management Team who are trained in
the roles, responsibilities, and functions of the
Emergency Operations Center
65% 60% 100%
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Number of external agreements developed to
support the execution of the Emergency
Management Program
5 3 3
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Percentage of Temecula Population enrolled in
the Citywide mass notification system 12% 17% 20%
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
366

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
146 | Annual Operating Budget

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Support community oriented policing and
maximize community leadership in public
safety
Number of citizens trained in Community
Emergency Response Team training (CERT)114 150 150
FIRE - EMERGENCY OPERATIONS Go to Department Section Support community oriented policing and
maximize community leadership in public
safety
Number of citizens trained in CPR, First Aid, and
healthcare provider CPR, and Stop the Bleed
Program
900 900 1500
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Average response time (in minutes) to City
emergency incidents 555
FIRE - FIRE MARSHAL Go to Department Section
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Number of Fire Department plan reviews
performed 5,500 5,000 3,500
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Number of Fire Department new construction &
tenant improvement inspections performed 5,000 5,000 3,500 Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Number of State-mandated inspections 2,600 3,000 3,200
Minimize impact to life, property and the
environment from natural hazards and
emergency situations
Number of annual inspections completed 4,000 4,000 5,000 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - COMMUNITY SERVICES Go to Department Section Be a sustainable community that embraces
residents’ quality of life Number of digital media communications NEW 30 30 Provide accessible sports, recreational,
cultural, health/therapeutic and community
engagement facilities, programs and
resources for all Temecula residents
DĂŝŶƚĂŝŶĨĂĐŝůŝƚLJƌĞŶƚĂůƐшϴ0% of availability NEW 85% 80% Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
367

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 147

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Provide accessible sports, recreational,
cultural, health/therapeutic and community
engagement facilities, programs and
resources for all Temecula residents
Maintain 75% participation rate in contract
classes 75% 75% 75%
Exhaust all methods of communication and
outreach between the City and its residents Number of social media posts per year 210 285 300 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - RECREATION Go to Department Section Provide accessible sports, recreational,
cultural, health/therapeutic and community
engagement facilities, programs and
resources for all Temecula residents
Monthly attendance of teen gym at the CRC 300 300 300
Provide accessible sports, recreational,
cultural, health/therapeutic and community
engagement facilities, programs and
resources for all Temecula residents
DĂŝŶƚĂŝŶĨŝĞůĚĂůůŽĐĂƚŝŽŶĂƚшϵϬйŽĨĂǀĂŝůĂďŝůŝƚLJ 100% 100% 100% Support community oriented policing and
maximize community leadership in public
safety
Number of special needs participants provided
with swim lessons and water safety programs 177 140 180 TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - CITYWIDE EVENTS Go to Department Section Be a diverse community that values and
supports people of all ages, backgrounds,
cultures, disabilities and religious beliefs
Number existing community events refreshed
per year 222
Exhaust all methods of communication and
outreach between the City and its residents
Number of social media posts and reels per year
to promote City activities and to obtain more
community participation
75 75 40
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - ARTS & CULTURE Go to Department Section Be a sustainable community that embraces
residents’ quality of life
Partnerships with local vendors to enhance
patron theater experiences in Old Town with
pre- and post-performance audience
engagement techniques
15 15 15
Provide consistently professional services and
information to customers and constituents
Number of active volunteers at the Temecula
Valley Museum 12 12 12
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
368

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
148 | Annual Operating Budget

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Be a diverse community that values and
supports people of all ages, backgrounds,
cultures, disabilities and religious beliefs
Number of student, adult, and city delegation
visits to foster and enhance the Sister Cities
partnership
NEW NEW 2
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - HUMAN SERVICES Go to Department Section Provide accessible sports, recreational,
cultural, health/therapeutic and community
engagement facilities, programs and
resources for all Temecula residents
Resource opportunities 35 37 37
Provide recreational and other activities for
youth Human Service programs for at-risk youth 37 40 150 Be a sustainable community that embraces
residents’ quality of life.

Provide bridge housing to unsheltered
households with children NEW NEW 6
Be a sustainable community that embraces
residents’ quality of life.

Number of rehousing, housing retention and
emergency hotel stays provided through Flexible
Family Assistance
NEW NEW 60
Provide consistently professional services and
information to customers and constituents
Maintain a чϳϮ-hour City response time to
incoming requests and notifications regarding
homeless concerns
NEW NEW 100%
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - ADMINISTRATION Go to Department Section Provide consistently professional services and
information to customers and constituents Complete departmental initiatives or analysis 6 6 4 Provide accessible sports, recreational,
cultural, health/therapeutic and community
engagement facilities, programs and
resources for all Temecula residents
Collaborate with Riverside County Law Library to
offer law related classes to the public 4 4 4
Provide accessible sports, recreational,
cultural, health/therapeutic and community
engagement facilities, programs and
resources for all Temecula residents
Computer classes provided in the technology
homework center at the Temecula Public Library 12 12 20 Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
369

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 149

PERFORMANCE MEASURES
Core
Value Five-Year Long-Term Goal Performance Measure
FY
2024-25
Actuals
FY
2025-26
Target
FY
2026-27
Target
Ensure transparency in all aspects of City
government Support City Manager’s Office in Special Projects 4 8 4 INFORMATION TECHNOLOGY (IT) 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 25 24 24
Promote innovation and adopt technology
that enhances access to information and data
Number of updates to the Temecula Outreach
Channel 3 and YouTube 105 100 80
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Percentage of computers that need to be
replaced to adhere to the Computer Lifecycle
Replacement Program
20% 20% 20%
Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Reduce the number of open Helpdesk tickets to
an average of 75 31 40 40
INFORMATION TECHNOLOGY (IT) - SUPPORT SERVICES Go to Department Section Provide the highest quality of service at the
most cost-effective rate while being fiscally
responsible
Average number of hours to resolve Helpdesk
tickets for out of service copiers 3.3 4 4
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P 5 5C T57T 5bA#yy
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
370

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
150 | Annual Operating Budget 371

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 151
Departmental Information

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.
372

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
152 | Annual Operating Budget 373

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 153
City Council
374

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
154 | 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:

SERVICES
City Council
x Serves as a five-member voice on behalf of the City of Temecula as elected by the citizens. x Adopts laws and regulations that govern Temecula.
x Sets City fiscal policy and provides direction to the City Manager to balance a high quality of life with fiscally sustainable decisions.
x 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
x Reviews annual funding applications from nonprofit organizations that provide services or programs to Temecula residents.
x Enters into agreements to disburse financial assistance, as budgeted Citywide, to multiple selected nonprofit organizations that benefit the residents of Temecula.

Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P13586TB216bA#y1y
Safe & Prepared Community
Accountable & Responsive City GovernmentTransportation Mobility & Connectivity Economic Prosperity
Healthy & Livable City
Sustainable & Resilient City
Equity
P13602TB312bA#y1y P 360 T 3 3bA#yP 360 T 3 3bA#y P 360 T 3 4bA#yy P360T35bA#yy 375

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 155

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the City Council include:

City Council
x Provided 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) x Continuedto 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)
x Continued to prioritizepublic outreach. Engaged 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) x Introduced, implemented, and communicated 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) x 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
x Through Community Service Funding and the City Council Grant Program, funded non-profit organizations that will assist and provide services to the citizens of Temecula.(Healthy & Livable City) P13617TB316bA#y1y
P13617TB317bA#y1y P367T38bA#yy P367T39bA#yP367T39bA#y
376

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
156 | Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from the City Council include:

City Council
x Continue to make public safety a top priority by maintaining a strategically staffed and structured Sheriff’s Office and Fire Department, and equipping public safety personnel with modern technology, equipment, and apparatuses. (Safe & Prepared Community)
x Continue to prioritize public outreach, promoting transparency and civic engagement through open communication and public education about City government. Engage with citizens and businesses via social media, e-blasts, and 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)
x Introduce and implement initiatives to preserve the high quality of life for all residents by supporting public safety, investing in infrastructure, roadways, youth and recreation, and fostering an enhanced, elevated City where families can thrive for generations. (Healthy and Livable City) x 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) x Continue to elevate and enhance the City's appeal and landscape beauty as a destination City, the heart of Southern California Wine Country.(Economic Prosperity)
Community Support
x 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) P 363 T 3 0bA#y
156 |AlOti
y P13632TB321bA#y1
dt
y P 363 T 3 bA#yy
P13632TB323bA#y1y
377

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 157

ORGANIZATIONAL CHART
P 3638T 7bA#yyP13638TB218bA#y1y P 3638T 9bA#yy P 3638T 0bA#yyP 3638T 5 7bA#yy 378

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
158 | Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
CITY COUNCIL 100
SALARIES & BENEFITS Total 163,330 219,665 230,002 10,336 4.71% OPERATIONS & MAINTENANCE Total 179,236 204,111 188,206 (15,905) -7.79% INTERNAL SERVICE FUND ALLOCATIONS Total 320,804 331,143 317,959 (13,184) -3.98% Division Total 663,370 754,919 736,167 (18,753) -2.48%
COMMUNITY SUPPORT 101
OPERATIONS & MAINTENANCE Total 125,000 115,000 190,000 75,000 65.22% Division Total 125,000 115,000 190,000 75,000 65.22%

ANALYSIS/COMMENTS
City Council:

City Council expenditures reflect a 2.48% reduction due to decreased Dues & Memberships and Consulting Services costs, as well as lower technology costs allocated through the Internal Service Fund. These reductions are partially offset by an increase in Salaries & Benefits related to the increased Cafeteria benefit in accordance with the City’s labor agreements.

Community Support:

Community Support expenditures reflect an increase of 65.22% due to the increase of Community Grants. 379

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 159

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

CITY COUNCIL
Council Members 5.00 5.00 5.00 -
Total 5.00 5.00 5.00 -
380

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
160 | Annual Operating Budget 381

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 161
City Manager
382

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
162 | 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
x Ensure the QLMP goals and citizen priorities adopted by the City Council are achieved through Citywide strategic planning, policy implementation and budget development. x Keep the City Council informed about City operations and important community issues that impact the City. x Implement City Council’s long-term and short-term directives. x 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 x Support existing businesses and encourages their continued prosperity and growth. x Manage an ongoing marketing/branding program to attract commercial and industrial development, entrepreneurs, and innovative startups.
x Administer the business incubator and resource center facility to foster new business formation and provide resources to new and existing businesses.
x Work to attract new industries that bring an enhanced tax base, quality jobs, and new capital into the community.
x Maintain strong relationships with educational, business and community leaders, and key partners (TVCC, VTV, EDC, SBDC, IEWBC, and IECE) to continue to maximize opportunities. x Facilitate smooth processing and problem solving for local businesses and businesses looking to expand in or relocate to Temecula.
x Manage and creates content for the City’s social media channels (including radio and television). x Create, plan, and produce the annual State of the City (SOTC) event and related activities. x Assist other departments and other public agencies withmarketing, social media, branding campaignsand press releases.
x Maintain strong focus on engaging the business community through site visits, meetings and ribbon cuttings. x Support small businesses by guiding them through the permit process to obtain their business license. x Produce informational videos regarding infrastructure updates and progress.

P13789TB324bA#y1y P13789TB325bA#y1y P13789TB326bA#y1y P 3789T 3 7bA#yy 383

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 163

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the City Manager’s Office include:

General Administration Division
x Continued to update the City's General Plan.(Accountable & Responsive City Government) x Implemented fiscal policies and Council priorities, while maintaining a balanced budget. (Sustainable & Resilient City)
x Introduced, implemented and communicated 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) x 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) x Maintained public safety as a top priority with a strategically staffed and structured Sheriff’s Office and Fire Department. (Safe & Prepared Community)
Office of Public Information and Economic Development Division x Produced the 2026 Temecula Magazine. (Economic Prosperity) x Created, planned and produced the annual State of the City (SOTC) address and related activities in 2026. (Economic Prosperity)
x Facilitated business growth and boosted City economics via creative social media campaigns. (Economic Prosperity)
x Expanded the number of tenants located within and programs offered at the Temecula Valley Entrepreneur’s Exchange (TVE2). (Economic Prosperity)
P13812TB529bA#y1y
P 38 T 530bA#yy
P38 T53bA#yy P13812TB532bA#y1yy
384

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
164 | Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from the City Manager’s Office include:

General Administration Division
x Continue to update the City's General Plan. (Accountable & Responsive City Government) x Implement fiscal policies and Council priorities, while maintaining a balanced budget. (Sustainable & Resilient City) x Introduce, implement and communicate any Council orMayoralinitiatives, including preparation of the Mayor’s State of the City address, public safety, public works infrastructure and circulation, support for local businesses and entrepreneurs, community events, and more. (Accountable & Responsive City Government) x 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) x Maintain public safety as a top priority with a strategically staffed and structured Sheriff’s Office and Fire Department. (Safe & Prepared Community)
Office of Public Information and Economic Development Division x Produce the 2027 Temecula Magazine. (Economic Prosperity) x Create, plan and produce the annual State of the City (SOTC) address and related activities in 2027. (Economic Prosperity)
x Facilitate business growth and boost City economics via creative social media campaigns. (Economic Prosperity) x Grow the number of and graduate more tenants within the Temecula Valley Entrepreneur’s Exchange (TVE2) through offered programs. (Economic Prosperity)
x Attract and secure new high-wage and tax revenue-producing businesses to Temecula.(Economic Prosperity) x Continue to grow public outreach and engagement with the community, including outreach on Citywide Capital Improvement Projects.(Accountable & Responsive Government) P386T38bA#y
P13826TB329bA#y1
P13826TB330bA#y1 P386T33bA#y
P1
P13826TB330 P3 y
3826TB329bA#y1y
bA#y1y
P13828TB534bA#y138yyy38y86T38bA#y P 38 8T 535bA#y
13 y P13828TB536bA#y1
0b
y P 38 8T 537bA#y38 6T 33 bA#yy y
385

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 165

ORGANIZATIONAL CHART
386

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
166 | Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
CITY MANAGER 110
SALARIES & BENEFITS Total 1,948,223 2,159,408 1,965,463 (193,946) -8.98% OPERATIONS & MAINTENANCE Total 179,380 246,572 233,619 (12,953) -5.25% INTERNAL SERVICE FUND ALLOCATIONS Total 458,734 502,155 466,243 (35,912) -7.15% Division Total 2,586,337 2,908,135 2,665,325 (242,811) -8.35%

OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT - BUSINESS INCUBATOR RESOURCE SALARIES & BENEFITS Total 234,733 191,845 197,654 5,809 3.03% OPERATIONS & MAINTENANCE Total 19,424 16,096 18,885 2,789 17.33% INTERNAL SERVICE FUND ALLOCATIONS Total 113,150 143,633 124,058 (19,575) -13.63% Division Total 367,307 351,574 340,597 (10,977) -3.12%
OFFICE OF PUBLIC INFORMATION AND ECONOMIC DEVELOPMENT 111 SALARIES & BENEFITS Total 808,789 895,199 881,369 (13,830) -1.54% OPERATIONS & MAINTENANCE Total 486,079 464,999 432,215 (32,784) -7.05% INTERNAL SERVICE FUND ALLOCATIONS Total 248,046 245,020 212,905 (32,115) -13.11% Division Total 1,542,914 1,605,218 1,526,488 (78,729) -4.9%

ANALYSIS/COMMENTS
City Manager:

City Manager expenditures reflect an 8.35% decrease due to staff retirements and vacancies, decreased Conferences costs, and lower technology costs distributed through the Internal Service Fund allocations.

Office of Public Information and Economic Development:

Office of Public Information and Economic Development divisions’ expenditures reflect a net 4.6% decrease due to lower PERS rates in the Salaries & Benefits, lower technology costsallocated through the Internal Service Fund, and less Economic Development grants.
387

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 167

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

CITY MANAGER -
Assistant City Manager 1.00 1.00 1.00 -
Assistant to the City Manager 0.50 0.50 0.50 -
City Manager 1.00 1.00 1.00 -
Deputy City Manager - 1.00 1.00 -
Executive Assistant 1.00 1.00 - (1.00)
Executive Assistant II - - 1.00 1.00
Senior Office Specialist 1.00 1.00 1.00 -
Total 4.50 5.50 5.50 -

OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT -
Administrative Assistant 1.00 1.00 1.00 -
Assistant to the City Manager 0.50 0.50 0.50 -
Economic Development Manager 1.00 1.00 1.00 -
Management Analyst 1.00 - - -
Multimedia Coordinator - 1.00 1.00 -
Multimedia Specialist II 1.00 - - -
Senior Management Analyst 1.00 2.00 2.00 -
Total 5.50 5.50 5.50 -
Grand Total 10.00 11.00 11.00 -
388

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
168 | Annual Operating Budget 389

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 169
City Clerk

DEPARTMENT OVERVIEW
390

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
170 | Annual Operating Budget

MISSION
The City Clerk’s Office is dedicated to serving our community with integrity, transparency, and professionalism. We are committed to strengthening communication with the public, fostering trust in local government through accountability and openness, safeguarding the integrity of the democratic and participatory process, and ensuring equitable access to services and programs for all segments of the community.

SERVICES
x 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. x Administer campaign disclosure statements, conflict of interest filings, and related responsibilities for candidates, and elected and appointed officials pursuant to the Political Reform Act. x Administer public meetings, noticing, and related responsibilities for legislative body and advisory boards and commissions pursuant to the Ralph M. Brown Act.
x Administer Citywide records management program and ensure public access to records pursuant to the Public Records Act.
x Administer annual board and commission recruitment process for expiring terms and unscheduled vacancies pursuant to the Government Code.
x 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:
x Facilitated approval of the consolidation of the 2026 General Municipal Election for the City with the County of Riverside and prepared for the candidate nomination period for Districts 1, 3 and 5 to open in Summer 2025. (Accountable & Responsive City Government)
x Facilitated review and adoption of annual legislative platform, develop legislative priority materials, and conducted related legislative action days in Sacramento. (Accountable & Responsive City Government) x Facilitated comprehensive review of the City's existing board, committee, and commission structure to ensure alignment with the community's current needs and implemented City Council direction regarding the same. (Accountable & Responsive City Government)
x Facilitated approval of the City's Title VI Program by the City Council, served as Title VI Coordinator, and implemented 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) P 4 9T 336bA#yy P 4 9T 337bA#yy P 4 9T 338bA#yy P14129TB339bA#y1y 391

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 171

GOALS AND OBJECTIVES
Current fiscal year goals from the City Clerk’s Office include:
x Conduct General Municipal Election for Districts 1, 3 and 5 in November 2026 and perform related responsibilities for candidate nominations, campaign filings, and election certification. (Accountable & Responsive City Government)
x Implement Senate Bill 707 (SB 707) requirements, pursuant to law, related to reasonable accommodation, hybrid meetings, translated agendas, website updates, and public outreach. (Accountable & Responsive City Government)
x Conduct review of City's Title VI Program as Title VI Coordinator, pursuant to law, and implement related adjustments to Citywide services and program to ensure access for all segments of the community. (Equity) x Facilitate review and adoption of annual legislative platform, development legislative priorities for advocacy efforts, and conduct related activities in conjunction with statewide lobbying efforts on behalf of the City on various matters including housing and transportation. (Accountable & Responsive City Government) P14149TB340bA#y1y P14149TB341bA#y1y P 4 49T 34 bA#yP 4 49T 34 bA#y P14149TB343bA#y1y 392

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
172 | Annual Operating Budget

ORGANIZATIONAL CHART
393

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 173

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
CITY CLERK 120
SALARIES & BENEFITS Total 996,524 1,083,196 1,046,097 (37,100) -3.43% OPERATIONS & MAINTENANCE Total 412,419 202,303 330,791 128,488 63.51% INTERNAL SERVICE FUND ALLOCATIONS Total 355,457 321,721 345,668 23,947 7.44% Division Total 1,764,400 1,607,220 1,722,556 115,336 7.18%

ANALYSIS/COMMENTS
City Clerk:

City Clerk expenditures are projected to increaseby 7.18% primarily due to Election Costs and increased technology and facilities Internal Service Fund allocations, which are offset by the decrease in Salaries & Benefits related to lower PERS rates.

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

CITY CLERK -
Assistant City Clerk - - 1.00 1.00
Deputy City Clerk 1.00 1.00 - (1.00)
Director of Legislative Affairs/City Clerk 1.00 1.00 1.00 - Management Assistant 1.00 1.00 1.00 -
Records Manager 1.00 1.00 1.00 -
Records Technician 1.00 1.00 1.00 -
Total 5.00 5.00 5.00 -
394

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
174 | Annual Operating Budget 395

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 175
City Attorney
396

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
176 | 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
x Serves as legal advisor to the City Council, City Manager, and the various City departments, Commissions, Committees, and Boards.
x Prepares and approves the majority of proposed City ordinances, resolutions, contracts, and other legal documents.
x Represents the City of Temecula in all litigation.

P 4305T 344bA#yy P 4305T 345bA#yy
397

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 177

ORGANIZATIONAL CHART
398

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
178 | Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
CITY ATTORNEY 130
OPERATIONS & MAINTENANCE Total 887,250 815,000 950,000 135,000 16.56% Division Total 887,250 815,000 950,000 135,000 16.56%

ANALYSIS/COMMENTS
City Attorney:

City Attorney expenditures reflect increased Legal Services for FY26-27. 399

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 179
Finance Department
400

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
180 | 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
x Oversee the Citywide coordination of the City’s Annual Operating and Capital Improvement Program Budgets. x Manage and develop annual and five-year forecasts for City funds and programs, provide oversight of City’s internal controls and manage audit requirements.
x Provide front-line customer service to the public and manage the issuance and renewal of business licenses for businesses operating within the City limits.
x In accordance with the City's Investment Policy, manage cash and investments focusing on safety and liquidity, then yield (or return on investment).
x Prepare Annual Comprehensive Financial Report, Single Audit Reports, State Reports and Quarterly Financial reports.
x Process Accounts Payable, Accounts Receivable, biweekly Payroll, and yearly W-2 and 1099 reporting. x Maintain and update general ledger accounts for budget preparation and financial reports. x Assist in the review of City contracts to ensure compliance with State law, Public Contract Code and the Temecula Municipal Code.
x Administer the City’s purchasing process in accordance with the Temecula Municipal Code. x Administer the City’s debt obligations, including Community Facility District bonds and Tax Allocation Bonds. x 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:
x Continued the implementation of the City’s new financial accounting system’s payroll module. (Accountable & Responsive City Government)
x Receivedprofessional association awards for the City’s Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Accountable & Responsive City Government) x Continued to identify operational efficiencies within the Finance Department to utilize technology and streamline systems. (Accountable & Responsive City Government) P 4399T 538bA#yPP 4399T 538bA#y
P 4399T 539bA#yP 4399T 539bA#y P14399TB540bA#y1399 5 0b y P14399TB541bA#y1y 401

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 181
x 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 are feasible to expedite the reduction in the unfunded pension liability.(Accountable & Responsive City Government) x Conducted a Request for Proposals to secure a new independent auditing firm.(Accountable & Responsive City Government)
x Conducted a Request for Proposals for an update to the Citywide Cost Allocaton Plan and User Fee Study. (Accountable & Responsive City Government)
x Updated long-range financial and strategic plans for all major operating funds to ensure ongong fiscal solvency. (Accountable & Responsive City Government)

GOALS AND OBJECTIVES
Current fiscal year goals from the Finance Department include:
x Complete the implementation of a new payroll software that integrates with existing Human Resources personnel management systems. (Accountable & Responsive City Government) x Coordinate the update of the Citywide Cost Allocaton Plan, User Fee Study and Development Impact Fee Study. (Accountable & Responsive City Government)
x Receive professional association awards for the City’s Annual Operating Budget, Capital Improvement Program Budget and Annual Comprehensive Financial Report. (Accountable & Responsive City Government) x Implement new Pension and Other Post Employment Benefits (OPEB) policies to ensure the City stays fully funded in both programs.(Accountable & Responsive City Government) x Create a consolidated Citywide Fee Schedule to maximize transparency.(Accountable & Responsive City Government)
P14412TB346bA#y1 P14412TB347bA#y1
P 44 T 348bA#y
P 44 T 349bA#yP14412TB346bA#y1y P14412TB347bA#y1y
P 44 T 348bA#yy
P 44 T 349bA#yP 44 T 349bA#y
402

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
182 | Annual Operating Budget

ORGANIZATIONAL CHART
403

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 183

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
FINANCE 140
SALARIES & BENEFITS Total 3,081,809 3,411,086 3,390,852 (20,234) -0.59% OPERATIONS & MAINTENANCE Total 258,378 279,925 276,593 (3,332) -1.19% INTERNAL SERVICE FUND ALLOCATIONS Total 738,644 787,180 754,663 (32,517) -4.13% CAPITAL OUTLAY Total 0 33,000 0 (33,000) -100.0%
Division Total 4,078,830 4,511,190 4,422,108 (89,082) -1.97%

ANALYSIS/COMMENTS
Finance:

Finance expenditures reflect a decrease of 1.97% due to lower PERS rates in Salaries & Benefits, lower technology costs through the Internal Service Fund allocations, and no Capital Outlay requests for FY26-27. 404

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
184 | Annual Operating Budget

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

FINANCE -
Accountant I 1.00 2.00 1.00 (1.00)
Accountant II - - 1.00 1.00
Accounting Assistant 1.00 1.00 1.00 -
Accounting Assistant - Cashier 2.00 2.00 2.00 -
Accounting Technician I/II 1.00 1.00 - (1.00)
Assistant Director of Finance 1.00 1.00 1.00 -
Director of Finance 0.96 0.96 0.96 -
Finance Manager 1.00 1.00 1.00 -
Fiscal Services Manager 1.86 1.86 1.86 -
Management Analyst 2.00 2.00 1.00 (1.00)
Purchasing Manager - - 1.00 1.00
Senior Accountant (Confidential) 1.00 1.00 1.00 -
Senior Accounting Technician 1.00 1.00 1.00 -
Senior Accounting Technician (Confidential) 1.00 1.00 2.00 1.00 Total 14.82 15.82 15.82 -

COMMUNITY FACILITY DISTRICTS -
Director of Finance 0.04 0.04 0.04 -
Fiscal Services Manager 0.14 0.14 0.14 -
Total 0.18 0.18 0.18 -
Grand Total 15.00 16.00 16.00 -
405

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 185
Human Resources and Risk Management
406

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
186 | Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The Human Resources and Risk Management 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. Human Resources and Risk Management 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
xx 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 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. x 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. x 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 CalPERS regulations; and administer COBRA benefits for separated employees.
x 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.
x 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.
x Employee Relations: Administer performance evaluation process and advise management on performance management issues; counsel and advise employees on personnel matters; oversee disciplinary actions and appeals; manage and resolve employee grievances; conduct employee investigations to address and resolve personnel issues; and plan and implement employee recognition programs.

P 4664T 350bA#yP 4664T 350bA#y P 4664T 35 bA#yy
P 4664T 35 bA#yy
P 4664T 353bA#yy
407

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 187
xx 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
x Administration: Review, update, and develop policies and procedures to ensure compliance with State and Federal OSHA and alignment with Citywide operations and objectives; prepare and monitor the Risk Management budget and expenditures; manage and oversee federal mandated compliance program Department of Transportation (DOT) drug/alcohol testing. x 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. x General Liability: Coordinate with third-party administrators and legal counsel for the cost- effective resolution of general liability claims and lawsuits.
x 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.
x 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.
x 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.
x Claims Administration: Work in unison with Third Party Administrators to process both liability and workers’ compensation claims against the City.
x Cost Recovery: Coordinate with various City departments and Third Party Administrator for the recovery of costs associated with damage to City-owned property.
x 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.
x 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. x 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.

P 4678T 354bA#yP 4678T 354bA#y P14678TB355bA#y1P14678TB355bA#y1 P 4678T 356bA#yyy P14678TB357bA#y1y 408

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
188 | Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Human Resources, Risk and Emergency Management include:

Human Resources
xx Produced quarterly spotlights to educate employees on current benefit offerings, HR services, and other topics of interest. (Accountable & Responsive Government)
x Designed and implemented initiatives to enhance and maintain high job satisfaction among City employees. (Accountable & Responsive City Government)
x Facilitated the design, structure, content and workflows in the new HRIS system. (Accountable & Responsive City Government)
x Completed the personnel file scanning project to digitize paper records, enhancing efficiency, reducing paper waste and optimizing resource management. (Accountable & Responsive City Government) x Continued 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
x Continued to develop, implement, and/or update Citywide safety training programs (to prevent workplace injuries and illnesses) through June 2026. (Safe & Prepared Community) x Continued to deliver the City’s Employee Wellness Program, offering information, opportunities and events for all City employees through June 2026. (Accountable & Responsive City Government) x Maintained 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) x Continued 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) x Continued 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)
x Continued 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) x Updated the City’s Safety Footwear allowance, language and classifications in the MOU to ensure all exposed employees are provided with compliant safety footwear. (Safe & Prepared Community) x Completed a revision of the Injury and Illness Prevention Program and Heat Illness Prevention Plan to align with Cal\OSHA requirements. (Safe & Prepared Community)
x Facilitated and implemented Evident ID Certificate of Insurance software program to ensure insurance compliance for all City agreements/contracts. (Accountable & Responsive City Government) P 4698T 54 bA#yy P 4698T 543bA#yy P 4698T 544bA#yyy
P 4698T 545bA#yy
409

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 189

GOALS AND OBJECTIVES
Current fiscal year goals from Human Resources, Risk and Emergency Management include:

Human Resources
xx Produce monthly spotlights to educate employees on current benefit offerings, HR services, and other topics of interest. (Accountable & Responsive Government)
x Design and implement initiatives to enhance and maintain high job satisfaction among City employees. (Accountable & Responsive City Government)
x Continue implementation and optimization of the new HRIS system, including development of workflows, reporting tools, and employee self-service features. (Accountable & Responsive City Government) x Enhance and promote the use of NEOGOV modules to support paperless workflows, streamline HR processes, and improve employee access to HR information and tools. (Accountable & Responsive City Government) x Evaluate recruitment processes and implement strategies to improve hiring timelines and attract highly qualified candidates. (Accountable & Responsive City Government) x Review, update and modernize employment-related policies and guidelines to ensure compliance with evolving labor and employment laws and alignment with City operations. (Accountable & Responsive City Government) x Evaluate employee benefit programs to ensure offerings are inclusive of employees with diverse backgrounds, family structures, and life stages. (Heathy and Livable City) Risk Management
x Continue to develop, implement, and/or update Citywide safety training programs (to prevent workplace injuries and illnesses) through June 2027. (Safe & Prepared Community) x Continue to deliver the City’s Employee Wellness Program, offering information, opportunities and events for all City employees through June 2027. (Accountable & Responsive City Government) x Maintain the Hepatitis A&B Vaccination program for all current City staff and new hires, ensuring coverage based on job-related exposure through June 2027. (Safe & Prepared Community) x Continue to maintain the City's Cost Recovery Program for damages to City-owned property, for all affected City departments through June 2027. (Accountable & Responsive City Government) x 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 2027.(Safe & Prepared Community)
x Continue to monitor the Workplace Violence Prevention Program at City worksites, in accordance with the City’s Workplace Violence Prevention Plan, through June 2027. (Safe & Prepared Community) x Continue to update City agreement templates to maintain legal and regulatory compliance, through June 2027. (Accountable & Responsive City Government)
P477T59bA#yy P477T50bA#yy P477T5 bA#yy
P477T5 bA#y5by
410

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
190 | Annual Operating Budget

ORGANIZATIONAL CHART
411

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 191

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
HUMAN RESOURCES 150
SALARIES & BENEFITS Total 1,255,157 1,136,731 1,464,438 327,708 28.83% OPERATIONS & MAINTENANCE Total 712,544 1,457,028 911,570 (545,458) -37.44% INTERNAL SERVICE FUND ALLOCATIONS Total 259,652 337,706 346,063 8,357 2.47% Division Total 2,227,352 2,931,465 2,722,071 (209,393) -7.14%

ANALYSIS/COMMENTS
Human Resources Management:

Human Resources expenditures are projected to decrease by 7.14% due to a combination of lower Legal Services and Settlements costs, offset by an increase in Limited Term Assignment staffing budget that was charged to the Capital Improvement Program in FY25-26.

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

HUMAN RESOURCES -
Assistant Director of HR/Risk Management - 1.00 0.50 (0.50) Director of HR/Risk Management 0.50 0.50 1.00 0.50
Human Resources Technician II 2.00 - - -
Human Resources Supervisor - 1.00 1.00 -
Management Analyst - 1.00 1.10 0.10
Management Assistant (Confidential) 0.90 1.10 1.00 (0.10) Risk Manager - - 0.10 0.10
Senior Management Analyst 2.10 0.10 - (0.10)
Total 5.50 4.70 4.70 -
412

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
192 | Annual Operating Budget 413

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 193
Community Development Department
414

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
194 | 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
x Provide planning related analysis and recommendations to community, City staff, City Commissions and City Council for issues related to current and future development. x Provide environmental review services for future development projects. x 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. x Conduct legislative analysis and implementation to maintain compliance with all applicable State and Federal laws.
x Engage in all planning processes regarding future development of the City and region. x Conduct public outreach efforts.

Current Planning and Permit Center
x Provide development and environmental review services for development projects. x Provide planning-related analysis and recommendations to Planning Commission and City Council for issues related to development applications.
x Process building permits, including initial application, plan check, issuance, and records retention. x 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
x Promote life, health, and fire safety standards adopted through California Building Codes. x Provide plan examinations and building inspections to applicants seeking to improve their property. x Facilitate timely and efficient plan check and permitting services for businesses, residents, and developers, allowing customers to handle development services in one convenient location.

P14888TB358bA#y1P14888TB358bA#y1 P14888TB359bA#y1888 359b y P14888TB360bA#y1888 360b y P14888TB361bA#y1y
415

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 195
Code Enforcement
x Provide commercial and residential neighborhood preservation to ensure a high-quality standard of living and sustainability in communities.
x Identify substandard housing to promote life, health, and safety standards.

SARDA/Housing
x Administer the affordable housing compliance program to ensure compliance at all affordable housing developments monitored by the City.
x Identify, negotiate, and enter into funding agreements for the construction of affordable housing units. x Administer the Successor Agency to the Temecula Redevelopment Agency to wind down the obligations of the former Temecula Redevelopment Agency.

Community Development Block Grant
x Administer the Community Development Block Grant (CDBG) program, which provides funding for community- based services and capital infrastructure projects.
x Complete compliance and documentation requirements for U.S. Department of Housing and Urban Development (HUD).
x 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
x Review all department contracts to ensure compliance with Public Contract Code and City Municipal Code and internal financial policies.
x Manage department purchasing, contract administration, and procurement. x Provide support to Planning Commission and Old Town Local Review Board by managing and noticing agendas and reports.
x Prepare department’s Annual Operating Budget, Capital Improvement Program, and Five-Year Forecast. x Provide external agencies with quarterly, monthly, and annual development and fee reports. x Liaison to Human Resources for personnel responsibilities such as recruitment and evaluations.

P 4909T 36 bA#yy P 4909T 363bA#yy P 4909T 364bA#yy P14909TB365bA#y1y 416

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
196 | Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Community Development include:

Long Range Planning
x Continued to make progress on the fourth phase of the General Plan Update. (Accountable & Responsive City Government)
Current Planning and Permit Center
x Continued to maintain an average response time of less than one day for online public inquiries for Planning (excluding weekends and holidays). (Economic Prosperity) Building & Safety
x Maintained 75% of building permit transactions to be conducted online. (Economic Prosperity) Code Enforcement
x Maintained an average Code Case open date rate of less than 60 days. (Accountable & Responsive City Government) SARDA/Housing
x Solicited a request for proposal (RFP) for one affordable housing site. (Healthy & Livable City) Community Development Block Grant
x Continued to maintain CDBG timeliness requirements for the disbursement of funds. (Accountable & Responsive City Government)
Administration
x Continued to support the implementation of the Old Town Local Advisory Committee. (Economic Prosperity) P 493 T 366bA#yy P 493 T 367bA#y93 36 b y
P14931TB368bA#y1y P 493 T 369bA#yy
417

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 197

GOALS AND OBJECTIVES
Current fiscal year goals from Community Development include:

Long Range Planning
x Continue to make progress on the fourth phase of the General Plan Update. (Accountable & Responsive City Government)
Current Planning and Permit Center
x Maintain an average response time of less than one day for online public inquiries for Planning (excluding weekends and holidays).(Economic Prosperity)
Building & Safety
x Maintain 75% of building permit transactions to be conducted online. (Economic Prosperity) Code Enforcement
x Maintain an average Code Case open date rate of less than 60 days.(Accountable & Responsive City Government) SARDA/Housing
x Solicit and award a request for proposal (RFP) for one affordable housing site.(Healthy & Livable City) Community Development Block Grant
x Continue to maintain CDBG timeliness requirements for the disbursement of funds.(Accountable & Responsive City Government)
Administration
x Support the implementation of the Old Town Local Advisory Committee. (Economic Prosperity) P14953TB370bA#y1PP14953TB370bA#y1 P 4953T 37 bA#yy P 4953T 37 bA#yy P 4953T 373bA#yy 418

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
198 | Annual Operating Budget

ORGANIZATIONAL CHART
419

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 199

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
PLANNING 161
SALARIES & BENEFITS Total 1,967,406 2,246,734 2,071,002 (175,733) -7.82% OPERATIONS & MAINTENANCE Total 417,323 803,439 649,035 (154,404) -19.22% INTERNAL SERVICE FUND ALLOCATIONS Total 791,037 824,955 792,505 (32,450) -3.93% Division Total 3,175,766 3,875,129 3,512,542 (362,587) -9.36%

BUILDING & SAFETY - CODE ENFORCEMENT
SALARIES & BENEFITS Total 951,653 884,173 1,213,151 328,978 37.21% OPERATIONS & MAINTENANCE Total 132,326 291,360 276,360 (15,000) -5.15% INTERNAL SERVICE FUND ALLOCATIONS Total 286,831 370,952 412,991 42,039 11.33% Division Total 1,370,810 1,546,485 1,902,502 356,017 23.02% BUILDING & SAFETY 162
SALARIES & BENEFITS Total 2,368,568 2,524,496 2,417,475 (107,021) -4.24% OPERATIONS & MAINTENANCE Total 278,975 422,246 572,246 150,000 35.52% INTERNAL SERVICE FUND ALLOCATIONS Total 612,491 646,979 600,040 (46,939) -7.26% Division Total 3,260,035 3,593,721 3,589,761 (3,960) -0.11% ANIMAL CONTROL 172
OPERATIONS & MAINTENANCE Total 410,427 520,815 463,524 (57,291) -11.0% Division Total 410,427 520,815 463,524 (57,291) -11.0%

ANALYSIS/COMMENTS
Planning:

Planning expenditures are projected to decrease by 9.36% due to a combination of lower PERS rates and staffing allocations, decreased Consulting and Other Outside Services costs, and lower technology costs allocated through the Internal Service Fund.

Code Enforcement:

Code Enforcement division expenditures are projected to increase by 23.02% primarily due to the reallocation of staff from Planning and Building & Safety, and increased Overtime and Insurance costs, offset by a reduction in Small Tools/Equipment.

Building & Safety:

Building & Safety division reflects a reduction in Salaries & Benefits due to lower PERS rates and reallocated staff, an increase in Consulting Services costs, and a decrease in technology costs allocated through the Internal Service Fund.

Animal Control:

Animal Control expenditures decreased by 11% as a result of negotiated contract costs. 420

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
200 | Annual Operating Budget
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
COMMUNITY DEV BLOCK GRANT FUND 140
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 39,204 45,804 78,663 32,859 71.74% OPERATIONS & MAINTENANCE Total 146,285 255,440 250,964 (4,476) -1.75% TRANSFERS Total (323,453) 561,636 657,180 95,544 17.01% Division Total (137,964) 862,880 986,807 123,926 14.36% AFFORDABLE HOUSING FUND 165
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 195,539 248,132 232,607 (15,524) -6.26% OPERATIONS & MAINTENANCE Total 268,206 601,121 185,308 (415,813) -69.17% INTERNAL SERVICE FUND ALLOCATIONS Total 50,028 53,766 53,601 (165) -0.31% TRANSFERS Total 962,914 4,128,445 0 (4,128,445) -100.0% Division Total 1,476,687 5,031,464 471,516 (4,559,947) -90.63% SARDA DEBT SERVICE FUND 380
NON-DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 4,313,128 7,156,655 7,172,458 15,803 0.22% TRANSFERS Total 250,000 250,000 250,000 0 0.0%
Division Total 4,563,128 7,406,655 7,422,458 15,803 0.21%

ANALYSIS/COMMENTS
Community Development Block Grant:

CDBG expenditures reflect an increase of 14.36% due to reallocated staffing and the increased Cafeteria benefit in accordance with the City’s labor agreements, and fluctuations in the Transfers Out to support Capital Projects.

Affordable Housing:

Affordable Housing expenditures are anticipated to decrease 90.63% due to lower PERS rates and Legal Services costs, and the removal of the Transfers Out to support Capital Projects.

SARDA:

SARDA expenditures reflect a slight increase in the Operations & Maintenance due to Principal Debt Service costs. 421

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 201

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

COMMUNITY DEVELOPMENT - PLANNING -
Asst. Director of Community Development 0.65 0.65 0.35 (0.30) Assistant Planner 1.00 1.00 1.00 -
Associate Planner I 1.00 1.00 1.00 -
Associate Planner II 1.00 1.00 1.00 -
Community Development Technician I 0.30 0.30 0.10 (0.20) Community Development Technician II - - 0.20 0.20
Deputy City Manager 0.55 - - -
Directory of Community Development - 0.65 0.65 -
Management Assistant - - 0.35 0.35
Planning Manager 1.00 1.00 1.00 -
Planning Technician 2.00 1.00 0.90 (0.10)
Principal Management Analyst 0.35 0.55 0.20 (0.35)
Principal Planner - 1.00 - (1.00)
Senior Administrative Assistant 0.83 0.83 0.83 -
Senior Community Development Technician 0.20 0.20 0.20 - Senior Management Analyst 0.30 0.10 0.10 -
Senior Office Specialist 1.00 1.00 1.00 -
Senior Planner 1.00 1.00 2.00 1.00
Total 11.18 11.28 10.88 (0.40)

COMMUNITY DEVELOPMENT - BUILDING & SAFETY -
Administrative Assistant 2.00 - - -
Asst. Director of Community Development 0.25 0.25 0.45 0.20 Building Inspector I 1.00 1.00 1.00 -
Building Inspector II 2.00 2.00 2.00 -
Building Official 1.00 1.00 1.00 -
Code Enforcement Manager - 1.00 1.00 -
Code Enforcement Officer I 1.00 1.00 2.00 1.00
Code Enforcement Officer II 2.00 2.00 2.00 -
Community Development Technician I 2.70 2.70 0.90 (1.80) Community Development Technician II - - 1.80 1.80
Deputy City Manager 0.25 - - -
Director of Community Development - 0.25 0.25 -
Field Supervisor Code Enforcement 0.95 0.95 - (0.95)
Management Assistant - - 0.45 0.45
Plan Checker 1.00 1.00 1.00 -
Principal Management Analyst 0.45 0.45 - (0.45)
Senior Administrative Assistant 0.15 2.15 2.15 -
Senior Building Inspector 2.00 2.00 2.00 -
Senior Code Enforcement Officer 1.00 - - -
Senior Community Development Technician 1.80 1.80 1.80 - 422

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
202 | Annual Operating Budget
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr
Senior Management Analyst 0.90 0.90 0.90 -
Total 20.45 20.45 20.70 0.25
CDBG -
Management Assistant - - 0.20 0.20
Principal Management Analyst 0.20 0.20 0.20 -
Total 0.20 0.20 0.40 0.20

AFFORDABLE HOUSING -
Asst. Director of Community Development 0.10 0.10 - (0.10) Deputy City Manager 0.20 - - -
Director of Community Development - 0.10 0.10 -
Planning Technician - - 0.10 0.10
Principal Management Analyst - 0.80 0.80 -
Principal Planner - - - -
Senior Administrative Assistant 0.02 0.02 0.02 -
Senior Management Analyst 0.80 - - -
Total 1.12 1.02 1.02 -
Grand Total 32.95 32.95 33.00 0.05
*This increase reflects a reallocation of 0.05 FTE from the Temecula Community Services District.

One Principal Planner position is unfunded for FY2026-27. 423

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 203
Public Works Department
424

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
204 | 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
x 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. x 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. x 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. x Review of legal descriptions for property transactions and/or right-of-way acquisition, abandonment and easement requests.
x Provide Water Quality Management Plan (WQMP) reviews, inspections and oversight for the development community to ensure proper measures are considered during the development (planning/construction) process to meet NPDES regulations and requirements.

Traffic Engineering
x Maintain the Intelligent Transportation System (ITS) Network to provide for the efficient progression of traffic on the City’s primary corridors.
x Conduct an effective preventative maintenance program for traffic signal and communication equipment to minimize signal equipment failures.
x Review proposed development plans to ensure consistency with the City’s General Plan, Circulation Element and QLMP goals.
x Review and respond to citizen requests for traffic control devices and traffic calming measures,with input from the Traffic Safety Commission.
x Ensure neighborhood and school areas traffic safety by providing education through the Neighborhood Traffic Calming Program.

P15634TB374bA#y1yy P 5634T 375bA#yy P 5634T 376bA#yy P15634TB377bA#y1P15634TB377bA#y1y 425

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 205
x Monitor traffic conditions and develop proactive measures to provide for the safe and efficient movement of traffic on City arterials.
x Design, implement, and maintain fiber optic communications to traffic signals and facilities.

Capital Improvement Program
x 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.
x Administration of assessment and special district design and construction projects. x Coordination with federal, state, regional and local agencies related to design and construction of CIP projects. x Application for and administration of funding and grants from federal, state, regional, and local sources for CIP projects.
x Monitor regional, state, and federal transportation initiatives to ensure City transportation interests are met. x Administration of right-of-way acquisitions, including negotiations, appraisal reviews, title and escrow services, and management of right-of-way consulting services.

Street Maintenance
x 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. x Maintain City-owned storm drains, catch basins, and surface drainage facilities, and monitor illegal dump areas in support of the City’s NPDES program.
x Proactively mitigate graffiti vandalism from the right-of-way and expedite transmission of relevant graffiti information to police investigators.
x Respond to emergency situations and natural disasters, provide special event support and perform weed abatement and litter control.
x Administer the Trees for Temecula Program to replace missing or damaged street trees within residential neighborhoods.

Facility Maintenance
x 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. x 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.
x Respond to routine and emergency work order requests. x Provide Council Chamber and meeting set-ups at various City facilities.

P15657TB546bA#y1y P15657TB547bA#y1565 5 b y P15657TB548bA#y1565 5 8b y P15657TB549bA#y1y
426

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
206 | Annual Operating Budget
x Provide special event support and day porter services to ensure a safe and clean environment for all users.

Parks Maintenance
x Administer the ongoing maintenance, repair and cleaning of all City parks, trails, open space areas, landscaped medians and applicable slope areas.
x Administer and oversee landscape water use for all City parks, landscaped medians, applicable slope areas, and recreation/administrative facility properties.
x Manage the urban forest within City parks, open space areas, landscaped medians, applicable slope areas, and recreation/administrative facility properties.
x Respond to routine and emergency work order requests, and provide support services for Citywide programs and special events.

Stormwater
x Administer and implement the City’s National Pollutant Discharge Elimination System (NPDES) program to ensure compliance with Federal and State water quality regulations. x Coordinate with Riverside County Flood Control and Water Conservation District to review pollutant monitoring data and supporting regulatory requirements.
x Ensure compliance with Federal Emergency Management Agency (FEMA) floodplain regulations and applicable City Code requirements.
x Provide NPDES engineering plan reviews, construction inspections, and development oversight to verify adherence to stormwater design standards and water quality controls. x Conduct Illicit Discharge Detection and Elimination (IDDE) investigations to identify, trace, and resolve unauthorized discharges to the storm system.
x Develop and administer alternative compliance stormwater credit program for qualifying development projects.
x Prepare and submit required fiscal analyses and program documentation to the State. x Deliver community outreach and public education initiatives to promote watershed protection, regulatory awareness, and environmental stewardship.

P15679TB378bA#y1 P15679TB379bA#y1 P 5679T 380bA#y
P15679TB381bA#y1P15679TB378bA#y1y P15679TB379bA#y1y P 5679T 380bA#yy P15679TB381bA#y1y 427

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 207

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Public Works include:

Land Development
x New and existing Land Development policies and procedures outlined.(Accountable & Responsive City Government) Traffic Engineering
x Implemented signal timing coordination on Pechanga Parkway.(Transportation Mobility & Connectivity) Capital Improvement Program
x Completed Citywide Pavement Rehabilitation Program – Rancho Way (Business Park Dr to Diaz Rd), Santiago Rd. (E of I-15 bridge to Ynez Rd.), and Felix Valdez Ave. (Vincent Moraga Dr. to Sixth St.). (Transportation Mobility & Connectivity)
x Completed construction of Ronald Reagan Sports Park Hockey Rink Renovation. (Transportation Mobility & Connectivity)
x Completed construction of I-15/SR-79 Enhanced Landscaping. (Transportation Mobility & Connectivity) Street Maintenance
x Continued to maintain and improve the City’s roadway network. (Sustainable & Resilient City) x Continued to provide effective graffiti abatement. (Sustainable & Resilient City) x Continued to provide well-maintained right-of-way areas. (Sustainable & Resilient City) Facility Maintenance
x Continued to retrofit various City facilities with LED lighting fixtures. (Sustainable & Resilient City) x Began fabricating and installing trash enclosure covers for all City facilities. (Sustainable & Resilient City) x Completed parking lot repairs at the Community Recreation Center. (Sustainable & Resilient City) Parks Maintenance
x Completed parking lot pavement rehabilitation at Patricia H. Birdsall Sports Park. (Sustainable & Resilient City) x Planted 300 trees throughout the City’s right-of-way, parks, medians and facilities. (Healthy & Livable City) Stormwater
x Developed a policy and procedures manual to outline common workflows for the Stormwater Division. (Accountable & Responsive City Government)
P15707TB382bA#y1y
P 5707T 383bA#yyy P 5707T 384bA#yyy
P15707TB491bA#y1y
428

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
208 | Annual Operating Budget

GOALS AND OBJECTIVES
Current fiscal year goals from Public Works include:

Land Development
x Develop a policy and procedures manual to outline common workflows for the Land Development Division. (Accountable & Responsive City Government)
Traffic Engineering
x Install fiber optic communication system along Ynez Road and implement signal timing coordination. (Transportation Mobility & Connectivity)
x Replace all safety lighting at signalized intersections with LED lighting.(Safe & Prepared Community) x Install green bike lane pavement markings on Winchester Road, Rancho California Road, and Temecula Parkway.(Transportation Mobility & Connectivity)
Capital Improvement Program
x Complete construction of Fire Station 84 renovation in Fall 2026. (Accountable & Responsive City Government) x Complete Ronald Reagan Sports Park Skate Park renovation in Winter 2026.(Transportation Mobility & Connectivity)
x Complete construction of Long Canyon Creek Park Restrooms in Summer 2026. (Healthy & Livable City) x Complete construction of Vail Ranch Park Restrooms in Summer 2026. (Healthy & Livable City) x Complete construction of ADA Curb Ramp Replacement Phase I in Fall 2026. (Equity) x Complete construction of Pauba Road Pavement Rehabilitation in Winter 2026. (Transportation Mobility & Connectivity)
x Complete construction of Auto Mall Wayfinding Signs in Winter 2026. (Economic Prosperity) x Begin construction of Fire Station 73 Gym and Garage in Fall 2026. (Safe & Prepared Community) x Complete design and bid package for Meadows Parkway Pavement Rehabilitation in Winter 2026. (Transportation Mobility & Connectivity)
Street Maintenance
x Complete Citywide cleaning of municipal separate storm sewer systems (MS4s) in the Wolf Creek area. (Sustainable & Resilient City)
P15732TB552bA#y1y P15732TB553bA#y1y
P15732TB554bA#y1y
P15732TB555bA#y1y
429

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 209
Facility Maintenance
x Continue to retrofit various City facilities with LED lighting fixtures. (Sustainable & Resilient City) x Paint City facility exteriors (FOC, West Wing, TVE2, Library, 6th Street Restroom, Fire Station 95). (Sustainable & Resilient City)
x Continue fabricating and installing trash enclosure covers for all City facilities. (Sustainable & Resilient City) x Upgrade appliances and replace Fire panel within the Community Recreation Center (CRC). (Sustainable & Resilient City)
x Replace kitchen cabinets, counters, sink and flooring at Fire Station 95.(Sustainable & Resilient City) Parks Maintenance
x Replacement of playground equipment at Paseo Gallante Park. (Healthy & Livable City) x Convert and install LED lighting at Patricia H. Birdsall Sports Park for soccer fields one through four.(Sustainable & Resilient City)
x Install sidewalk improvements at various City parks. (Sustainable & Resilient City) x Continue to plant new trees throughout the City’s right-of-way, parks, medians and facilities. (Healthy & Livable City)
Stormwater
x Streamline workflow procedures for the Stormwater Division.(Accountable & Responsive City Government) x Conduct a Community Creek Clean Up. (Healthy & Livable City) x Develop an Enforcement Response Plan in conjunction with Temecula Code Enforcement.(Accountable & Responsive City Government)
P 5748T 385bA#yy P 5748T 386bA#yy P 5748T 387bA#yy
P15748TB388bA#y15 8 388b y
430

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
210 | Annual Operating Budget

ORGANIZATIONAL CHART
431

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 211

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
LAND DEVELOPMENT 163
SALARIES & BENEFITS Total 1,488,350 1,560,592 2,006,977 446,385 28.6% OPERATIONS & MAINTENANCE Total 81,792 97,076 51,800 (45,276) -46.64% INTERNAL SERVICE FUND ALLOCATIONS Total 551,935 606,887 647,943 41,056 6.77% Division Total 2,122,077 2,264,555 2,706,720 442,165 19.53%

PUBLIC WORKS - STREETS MAINTENANCE
SALARIES & BENEFITS Total 1,648,860 1,946,957 2,047,227 100,270 5.15% OPERATIONS & MAINTENANCE Total 1,363,518 1,468,278 1,673,700 205,422 13.99% INTERNAL SERVICE FUND ALLOCATIONS Total 1,988,356 2,044,935 2,172,677 127,742 6.25% Division Total 5,000,734 5,460,169 5,893,604 433,435 7.94%

PUBLIC WORKS - TRAFFIC ENGINEERING
SALARIES & BENEFITS Total 561,583 619,840 612,909 (6,931) -1.12% OPERATIONS & MAINTENANCE Total 77,190 236,582 156,620 (79,962) -33.8% Division Total 638,773 856,422 769,529 (86,893) -10.15%

PUBLIC WORKS - OLD TOWN MAINTENANCE
SALARIES & BENEFITS Total 131,175 146,833 151,010 4,178 2.85% OPERATIONS & MAINTENANCE Total 203,142 205,382 207,809 2,427 1.18% Division Total 334,318 352,214 358,819 6,605 1.88%

PUBLIC WORKS - NPDES COMPLIANCE
SALARIES & BENEFITS Total 373,320 432,730 406,983 (25,746) -5.95% OPERATIONS & MAINTENANCE Total 670,196 1,144,479 946,743 (197,736) -17.28% Division Total 1,043,515 1,577,209 1,353,726 (223,483) -14.17%

PUBLIC WORKS - TRAFFIC MAINTENANCE
SALARIES & BENEFITS Total 455,520 361,859 390,267 28,407 7.85% OPERATIONS & MAINTENANCE Total 143,785 228,200 186,300 (41,900) -18.36% Division Total 599,305 590,059 576,567 (13,493) -2.29%
CIP PUBLIC WORKS 165
SALARIES & BENEFITS Total 2,632,454 2,777,958 2,364,443 (413,515) -14.89% OPERATIONS & MAINTENANCE Total 30,529 49,748 50,000 253 0.51% INTERNAL SERVICE FUND ALLOCATIONS Total 550,561 614,657 552,661 (61,996) -10.09% CAPITAL OUTLAY Total 33,395 0 0 0 0.0%
Division Total 3,246,939 3,442,362 2,967,104 (475,258) -13.81% 432

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
212 | Annual Operating Budget
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
PARKS MAINTENANCE 167
SALARIES & BENEFITS Total 1,453,427 1,615,455 1,579,966 (35,489) -2.2% OPERATIONS & MAINTENANCE Total 4,151,329 4,199,054 4,295,227 96,173 2.29% INTERNAL SERVICE FUND ALLOCATIONS Total 438,336 675,281 683,546 8,265 1.22% CAPITAL OUTLAY Total 96,451 0 0 0 0.0%
Division Total 6,139,542 6,489,790 6,558,739 68,949 1.06% DEVELOPMENT IMPACT FEES FUND 120
NON-DEPARTMENTAL 199
TRANSFERS Total 4,783,586 13,181,795 6,220,931 (6,960,864) -52.81% Division Total 4,783,586 13,181,795 6,220,931 (6,960,864) -52.81% MEASURE A FUND 170
NON-DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 411,378 3,622,265 3,155,000 (467,265) -12.9% TRANSFERS Total 1,907,206 9,855,823 1,312,000 (8,543,823) -86.69% Division Total 2,318,584 13,478,087 4,467,000 (9,011,087) -66.86%

ANALYSIS/COMMENTS
Land Development:

Land Development expenditures are increasing by 19.53% due to reallocated staff, the increased Cafeteria benefit in accordance with the City’s labor agreements, and increased Insurance costs, offset by a decrease in Consulting Services.

Public Works:

All Public Works divisions reflect a net increase of 1.31% compared to the prior year, due to reallocated staff and increased technology costs allocated through the Internal Service Fund.

CIP:

CIP division expenditures are decreasing by 13.81% due to reallocated staff and lower PERS rates, combined with lower Insurance and Technology costs allocated through the Internal Service Fund.

Parks Maintenance:

Parks Maintenance expenditures are projected to increase by 1.06% primarily due to higher Landscape Maintenance costs, offset by a reduction in the PERS rate.

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.
433

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 213

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

PUBLIC WORKS - LAND DEVELOPMENT -
Assistant Engineer II 1.00 - - -
Asst. Director of Public Works 1.00 - - -
Associate Civil Engineer 1.00 1.00 1.00 -
Associate Engineer I - 1.00 1.00 -
Associate Engineer II 1.00 2.00 2.00 -
Director of Public Works 0.15 0.15 0.15 -
Engineering Tech I 1.00 1.00 - (1.00)
Management Analyst 1.00 1.00 1.00 -
Principal Civil Engineer - - 1.00 1.00
Principal Management Analyst 0.10 - - -
Public Works Inspector Il 0.90 0.90 0.90 -
Senior Administrative Assistant 0.20 0.20 0.20 -
Senior Civil Engineer - - 1.00 1.00
Senior Management Analyst - - 0.10 0.10
Senior Office Specialist 1.00 0.60 0.60 -
Senior Public Works Inspector 0.75 0.75 0.75 -
Total 9.10 8.60 9.70 1.10

PUBLIC WORKS -
Associate Civil Engineer 1.00 1.00 1.00 -
Custodian II 0.20 0.20 0.10 (0.10)
Director of Public Works 0.40 0.40 0.40 -
Field Supervisor - Trades 0.15 - 0.10 0.10
Landscape Inspector II 0.20 0.20 0.20 -
Lead Maintenance Worker 3.00 - - -
Lead Maintenance Worker-Electrician 0.10 0.10 - (0.10)
Lead Maintenance Worker-HVAC 0.05 0.05 0.05 -
Maintenance Manager 0.85 0.85 0.85 -
Maintenance Superintendent 0.10 0.10 0.10 -
Maintenance Superintendent-Streets 1.00 1.00 1.00 -
Maintenance Worker I 7.00 7.00 5.00 (2.00)
Maintenance Worker II - 3.00 5.00 2.00
Management Analyst - 0.35 - (0.35)
Management Assistant 0.35 - - -
Office Specialist II - 1.00 - (1.00)
Principal Civil Engineer - 1.00 1.00 -
Principal Management Analyst 0.35 - - -
Program Manager 1.00 1.00 1.00 -
Public Works Inspector II 0.10 0.10 0.10 -
Senior Administrative Assistant 0.20 0.20 0.20 -
Senior Civil Engineer 1.00 - - -
Senior Landscape Inspector 0.20 0.20 0.20 -
Senior Management Analyst - - 0.75 0.75
Senior Office Specialist 1.00 0.40 2.30 1.90
434

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
214 | Annual Operating Budget
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr
Senior Public Works Inspector 0.25 0.25 0.25 -
Senior Signal Technician 2.00 1.20 1.20 -
Signal Technician I - 0.60 0.60 -
Total 20.50 20.20 21.40 1.20

PUBLIC WORKS - CIP ADMINISTRATION -
Asst. Director of Public Works - 1.00 1.00 -
Assistant Engineer I 1.00 - - -
Assistant Engineer II 2.00 2.00 1.00 (1.00)
Associate Civil Engineer 1.00 1.00 - (1.00)
Associate Engineer I - 1.00 2.00 1.00
Associate Engineer II 3.00 2.00 2.00 -
Director of Public Works 0.25 0.25 0.25 -
Engineering Manager 1.00 - - -
Principal Civil Engineer 1.00 2.00 1.00 (1.00)
Principal Management Analyst 0.45 - - -
Public Works Inspector I - - 1.00 1.00
Senior Administrative Assistant 0.60 0.60 0.60 -
Senior Civil Engineer 1.00 1.00 - (1.00)
Senior Management Analyst - - 0.45 0.45
Senior Public Works Inspector 2.00 2.00 1.00 (1.00)
Supervising Public Works Inspector 1.00 1.00 1.00 -
Total 14.30 13.85 11.30 (2.55)

PARKS MAINTENANCE -
Director of Public Works 0.10 0.10 0.10 -
Landscape Inspector II 0.50 0.55 0.55 -
Lead Maintenance Worker 2.00 2.00 2.00 -
Lead Maintenance Worker-Electrician 0.10 0.10 - (0.10)
Maintenance Superintendent 0.95 0.95 0.95 -
Maintenance Worker I 1.00 1.00 1.00 -
Maintenance Worker II 1.00 1.00 1.00 -
Management Assistant 0.25 - - -
Management Analyst - 0.25 - (0.25)
Parks & Trails Specialist I* 2.00 - - -
Parks & Trails Specialist II* 1.00 3.00 3.00 -
Senior Landscape Inspector 0.50 0.50 0.50 -
Senior Management Analyst - - 0.20 0.20
Total 9.40 9.45 9.30 (0.15)
Grand Total 53.30 52.10 51.70 (0.40)
*This decrease reflects a reallocation of 0.40 FTE to the Internal Service Fund’s Facilities division. 435

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 215
Temecula Sheriff’s Office
436

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
216 | Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
The Temecula Sheriff’s Officeis 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
x Manage personnel and operations at two Substation locations, City Hall, and the Southwest Station. x Coordinate with Human Resources to ensure effective deployment of personnel. x Prepare annual budgets and ensure sufficient funds are allocated for equipment and operations. x Coordinate station logistics, ensuring tracking of all equipment, property and evidence. x Oversee law enforcement aspects of City-held special events.

Investigations/Special Teams
x Provide specialized enforcement related to gangs, narcotics, crime trends, vice, and quality of life issues. x Develop and implement anti-graffiti programs and operations. x Follow up on investigations initiated through patrol calls for service. x Supervise and perform compliance enforcement of sex registrants. x Develop and implement community outreach programs including crime prevention and youth education. x Prepare and perform business liaison programs and presentations. x Provide a safety plan for all public events, as well as safety planning for City buildings. x Work collaboratively with the Code Enforcement and Fire Departments to address various crimes and municipal code violations.

Traffic Enforcement
x Maintain the safe flow of traffic and perform investigations of traffic collisions. x Ensure the safety of Temecula streets through the enforcement of all traffic laws. x 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. x Provide rapid deployment for critical incidents.

P 6633T 393bA#yy P 6633T 394bA#yy P 6633T 395bA#yy P16633TB396bA#y1y 437

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 217
Patrol Services
x Utilize centralized, countywide K9 resources to assist in the detection of narcotics, the search for persons, and building searches in support of patrol operations.
x Serve as first responders to calls for service, providing timely and effective response to criminal incidents while enforcing laws and maintaining public safety.
x Identify, evaluate, and document quality-of-life issues, including graffiti, vandalism, and disturbances, and take appropriate enforcement or corrective action to preserve public order. x Maintain high-visibility patrol throughout the City and engage with community members to build partnerships, promote public trust, and deter criminal activity.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from the Sheriff’s Office include:

Administration
x Remained one of the safest cities in California and the nation. (Accountable & Responsive City Government) x Provided consistently professional services and information to customers and constituents. (Accountable & Responsive City Government)
Investigations/Special Teams
x The Robbery/Burglary Suppression Team (BRST) focused 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)
x The CORE Team conducted 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) x The CORE Team established 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).
x The CORE Team worked with the city Homeless Outreach Team to manage issues related to the homeless and/transient community. (Healthy & Livable City).
x The Special Enforcement Team continued to conduct specialized enforcement related to gangs, narcotics, and crime trends. (Safe & Prepared Community)
x The METRO Team provided 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)
P 6657T 556bA#yy P 6657T 557bA#yy P 6657T 558bA#yy P 6657T 559bA#yy 438

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
218 | Annual Operating Budget
Traffic Enforcement
x Continued the open dialog with Traffic Engineering to improve traffic safety in the new fiscal year. (Transportation Mobility & Connectivity)
x Continued 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) x Continued to provide enforcement and education with the goal of reducing red light violators by 20%. (Transportation Mobility & Connectivity)
x Continuedhigh-visibilityenforcement with the goal of reducing street racing and noise pollution. (Transportation Mobility & Connectivity)
x 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)
x Increased the number of high-visibility saturation patrols for FY2025-26. (Transportation Mobility & Connectivity) Patrol Services
x 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)
x Continuedcollaboration with CORE Team to effectively helphomelesspeople within the City. Utilizedall options and available resources as an alternative to incarceration.(Healthy & Livable City) x Promotedcontinued education and ensureddeputies receive specialized training to properly investigate a wide variety of crimes.(Healthy & Livable City)
P16671TB397bA#y1P16671TB397bA#y1 P 667 T 398bA#yyy P 667 T 399bA#yyy P16671TB400bA#y1yy 439

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 219

GOALS AND OBJECTIVES
Current fiscal year goals from the Sheriff’s Office include:

Administration
x Maintain Temecula’s status as one of the safest cities in California and the nation by supporting operational effectiveness, resource management, and strategic planning efforts. (Accountable & Responsive City Government) x Enhance the delivery of professional services and information to customers and constituents by improving communication, administrative processes, and overall service efficiency. (Accountable & Responsive City Government)
Investigations/Special Teams
x Enhance targeted enforcement and investigative efforts by the Robbery/Burglary Suppression Team (RBST) to identify, apprehend, and prosecute offenders involved in robbery and burglary crimes, with a focus on reducing crime trends and improving case outcomes. (Safe & Prepared Community) x Strengthen proactive enforcement and problem-oriented policing efforts by the CORE Team to address quality- of-life issues, including illegal vending, code violations, and disorder-related offenses, while maintaining public order and community standards. (Safe & Prepared Community) x Expand collaboration between the CORE Team, Homeless Outreach Team, and community stakeholders to address issues related to the unhoused population through a balanced approach of enforcement, engagement, and service connection. (Healthy & Livable City / Equity) x Advance specialized enforcement efforts by the Special Enforcement Team (SET) to address gang activity, narcotics-related crimes, and emerging crime trends through intelligence-led and data-driven strategies. (Safe & Prepared Community)
x Enhance proactive policing and partnership-based enforcement by the METRO Team in the Old Town area, coordinating with Code Enforcement, Building & Safety, and the Fire Department to address business-related concerns and maintain a safe environment. (Safe & Prepared Community) Traffic Enforcement
x Continue the open dialog with Traffic Engineering to improve traffic safety in the new fiscal year. (Transportation Mobility & Connectivity)
x 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) x Continue to provide enforcement and education with the goal of reducing red light violators by 20%. (Transportation Mobility & Connectivity)
x Continue high-visibility enforcement with the goal of reducing street racing and noise pollution. (Transportation Mobility & Connectivity)
P16689TB560bA#y1y P 6689T 56 bA#y6689 56 b y P 6689T 56 bA#y6689 56 b y P 6689T 563bA#yyy 440

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
220 | Annual Operating Budget
x 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)
x Increase the number of high-visibility saturation patrols for FY2026-27. (Transportation Mobility & Connectivity) x Continue partnering with TVUSD, parents, and other community organizations to address growing e-bike concerns through enforcement and education. (Safe & Prepared Community) Patrol Services
x Expand coordination with the Community Behavioral Health Assessment Team (CBAT) to enhance Patrol’s response to individuals in crisis, including increased co-response efforts, improved tracking of mental health- related calls for service, and a focus on reducing repeat incidents, while emphasizing de-escalation and the appropriate use of discretion. (Safe & Prepared City)
x Strengthen collaboration with the CORE Team through targeted, data-driven strategies to address homelessness, focusing on high-frequency locations and individuals, increasing service connections, and reducing related calls for service and quality-of-life concerns, while maintaining public safety and public order. (Healthy & Livable City / Equity)
x Advance Patrol readiness by expanding specialized training and implementing data-driven, proactive policing strategies to address emerging crime trends, enhance investigative capabilities, and ensure deputies apply lawful authority in a fair, reasonable, and professional manner. (Safe & Prepared City / Accountable & Responsive Government)
P16697TB401bA#y1y
P 6697T 40 bA#yy P16697TB403bA#y1y P 6697T 404bA#yy
441

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 221

ORGANIZATIONAL CHART
442

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
222 | Annual Operating Budget

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
SHERIFF'S OFFICE 170
SALARIES & BENEFITS Total 29,036 17,512 0 (17,512) -100.0% OPERATIONS & MAINTENANCE Total 42,331,213 46,701,131 50,632,339 3,931,208 8.42% INTERNAL SERVICE FUND ALLOCATIONS Total 567,015 678,823 705,738 26,915 3.96% CAPITAL OUTLAY Total 0 199,914 85,000 (114,914) -57.48% Division Total 42,927,265 47,597,381 51,423,077 3,825,696 8.04%

ANALYSIS/COMMENTS
Temecula Sheriff’s Office:

Expenditures are projected to increase by 8.04% 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 & Benefits reflect all Part-Time Project positions shifting over to Sheriff’s Support Officers to be provided by the County through the contract. Capital Outlay expenditures have decreased to reflect the purchase of two motorcycles in FY26-27, compared to the purchase of four in FY25-26. 443

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 223

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr
SHERIFF'S OFFICE (Contract Employees)
Chief of Police 1.00 1.00 1.00 -
Lieutenant 5.00 5.00 5.00 -
Sergeant 15.00 15.00 15.00 -
Patrol Officers 40.70 40.70 40.70 -
Gang Task Force Officer 1.00 1.00 1.00 -
Mall Officers 4.00 4.00 4.00 -
Traffic Accident Investigators 5.00 5.00 5.00 -
Traffic Motorcycle Officers 12.00 12.00 12.00 -
K9 Officers - - --
Special Enforcement Team Officers 18.00 18.00 18.00 -
Problem Oriented Policing Team Officers - - --
Civic Center Deputy 1.00 1.00 1.00 -
Pechanga Deputy 1.00 1.00 1.00 -
School Resource Officers 5.00 5.00 5.00 -
Youth Action Team (YAT) Officer 1.00 1.00 1.00 -
Investigators 7.00 7.00 7.00 -
Total 116.70 116.70 116.70 -
444

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
224 | Annual Operating Budget 445

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 225
Fire Department
446

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
226 | Annual Operating Budget

DEPARTMENT OVERVIEW

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
x Serve as first responders for all risk emergency calls and public assist calls for service within the Cityof Temecula. x Provide CPR/AED, Health Care Provider, and First Aid certification training.

Emergency Management
xx 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.
x 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.”
x 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. x 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.

P 6934T 405bA#yy P 6934T 406bA#yy P 6934T 407bA#yy P 6934T 408bA#yy 447

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 227
xx 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.
x 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. x Provide oversight and guidance to the Temecula Citizen Corps (TCC) and their Emergency Response Team program.

Fire Marshal
x Perform annual and State-mandated inspections to ensure fire and life safety compliance. x Educate the public in fire safety and prevention strategies.

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Fire include:

Emergency Operations
x Maintained five-minute response times to all calls for service. (Safe & Prepared Community) x Retained four-person staffing on all City engines and truck companies. (Safe & Prepared Community) x Continued CPR, First Aid, Stop the Bleed and Community Emergency Response Team (CERT) classes to the community in a safe environment. (Safe & Prepared Community) x 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)
x 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
x Began 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 incorporates and complies with principles and requirements found in Federal and State laws, regulations, and guidelines. (Safe & Prepared Community)
P16953TB565bA#y1P16953TB565bA#y1 P16953TB566bA#y1y
P 695 T 567bA#yy
P16953TB568bA#y1y
448

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
228 | Annual Operating Budget
xx Continued 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. Developed and maintained Community Bases CERT Training program to further enhance the community's resilience through education and preparedness. (Safe & Prepared Community)
x Continued to provide additional inclusive training opportunities to the City’s population by providing CERT Training and LISTOS training in Spanish. (Safe & Prepared Community) Fire Marshal
x 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) x Continued working with the community to educate them on Fire, Life and Safety. (Safe & Prepared Community)

GOALS AND OBJECTIVES
Current fiscal year goals from Fire include:

Emergency Operations
x Maintain five-minute response times to all calls for service. (Safe & Prepared Community) x Retain four-person staffing on all City engines and truck companies. (Safe & Prepared Community) x Continue CPR, First Aid, Stop the Bleed and Community Emergency Response Team (CERT) classes to the community in a safe environment. (Safe & Prepared Community) x 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)
x 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
x Continue the development of the City's first Citywide Mass Evacuation Plan that ensures the principles, structures, roles and responsibilities are in place for a coordinated evacuation. The plan will incorporate and comply with the principles and requirements found in Federal and State Laws, legislation, regulations, and guidelines. (Safe & Prepared Community)
x 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 to residents and their livelihoods. (Safe & Prepared Community)
P 6973T 5 3bA#yy P 6973T 5 4bA#yy P16973TB525bA#y1yP 6973T 5 6bA#y69 3 5 6b y P 6960T 569bA#y
P
y P16960TB570bA#y1
P
y P 6960T 57 bA#y
P
P 6960T 57 bA#yP16960TB572bA#y1
P
yy
449

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 229
xx Begin the development of the Emergency Operations Center (EOC) cost recovery standards, resource ordering and tracking process under the Logistics Section, ensuring that the proper documentation standards are established as required by FEMA and CalOES. This will ensure that the City is able to recover all potential reimbursement costs post-incident. (Safe & Prepared Community) x Begin the development of the City's Continuity of Government / Continuity of Operations (COG/COOP) Plan.

Conduct a comprehensive review and/or rewrite of the Emergency Operations and Local Hazard Mitigation Plans as required while incorporating new legislation for the inclusion of Access and Functional Needs (AFN) support within the community. (Safe & Prepared Community) Fire Marshal
x 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) x Continue working with the community to educate them on Fire, Life and Safety. (Safe & Prepared Community) P 6978T 574bA#yyy P16978TB575bA#y1y P 6978T 576bA#yyP 6978T 577bA#yyy 450

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
230 | Annual Operating Budget

ORGANIZATIONAL CHART
451

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 231

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001

FIRE - PREVENTION
SALARIES & BENEFITS Total 483,179 601,433 601,862 430 0.07% OPERATIONS & MAINTENANCE Total 1,252,906 2,087,568 2,008,868 (78,700) -3.77% INTERNAL SERVICE FUND ALLOCATIONS Total 200,854 460,387 493,905 33,518 7.28% CAPITAL OUTLAY Total 68,320 0 0 0 0.0%
Division Total 2,005,260 3,149,388 3,104,635 (44,752) -1.42%

FIRE - PARAMEDICS
OPERATIONS & MAINTENANCE Total 52,584 92,528 71,900 (20,628) -22.29% Division Total 52,584 92,528 71,900 (20,628) -22.29%
FIRE - SUPPRESSION 171
SALARIES & BENEFITS Total 173,027 183,598 185,628 2,030 1.11% OPERATIONS & MAINTENANCE Total 5,653,521 8,871,311 9,906,263 1,034,952 11.67% INTERNAL SERVICE FUND ALLOCATIONS Total 499,143 349,655 371,206 21,551 6.16% CAPITAL OUTLAY Total 0 25,065 10,000 (15,065) -60.1%
Division Total 6,325,691 9,429,629 10,473,097 1,043,468 11.07% EMERGENCY MANAGEMENT 115
SALARIES & BENEFITS Total 186,222 209,207 211,022 1,815 0.87% OPERATIONS & MAINTENANCE Total 199,313 235,420 241,809 6,389 2.71% INTERNAL SERVICE FUND ALLOCATIONS Total 264,213 313,771 296,278 (17,493) -5.58% CAPITAL OUTLAY Total 4,960 5,000 175,250 170,250 3,405.0% Division Total 654,709 763,398 924,359 160,961 21.08%

ANALYSIS/COMMENTS
Fire:

Fire expenditures reflect a net increase of 7.72% due to inflationary adjustments in the contract with Riverside County. The total Fire budget of $27.1 million is offset by the Structural Fire Tax Credit of $13.5 million. The department employs 79 positions and provides four firefighters per engine/truck staffing model.

Emergency Management:

Emergency Management reflects an increase of 21.08% due to various Capital Outlay costs, partially offset by a reduction in technology costs allocated through the Internal Service Fund. 452

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
232 | Annual Operating Budget

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

EMERGENCY MANAGEMENT -
Emergency Manager - 1.00 1.00 -
Senior Management Analyst 1.00 - - -
Total 1.00 1.00 1.00 -
FIRE (Non-Contract Employees)-
Community Development Technician I-Fire 1.00 1.00 - (1.00) Community Development Technician II-Fire 1.00 1.00 2.00 1.00 Fire Inspector II 1.00 1.00 1.00 -
Management Analyst 1.00 1.00 - (1.00)
Office Specialist I - 1.00 1.00 -
Senior Management Analyst - - 1.00 1.00
Total 4.00 5.00 5.00 -
FIRE (Contract Employees)
Battalion Chief 1.00 1.00 1.00 -
Fire Captain 18.00 17.00 17.00 -
Fire Captain Medic 1.00 1.00 1.00 -
Fire Chief 1.00 1.00 1.00 -
Fire Engineer 11.00 11.00 11.00 -
Fire Engineer Medic 6.00 6.00 6.00 -
Fire Fighter II 16.00 22.00 22.00 -
Fire Fighter II Medic 18.00 12.00 12.00 -
Fire Safety Supervisor 1.00 1.00 1.00 -
Fire Safety Specialist 2.00 2.00 2.00 -
Fire Systems Inspector 3.00 5.00 5.00 -
Total 78.00 79.00 79.00 -
Grand Total 83.00 85.00 85.00 -
Riverside County provides cost sharing for staffing at Fire Station No. 95, whereby the County pays for 4 positions. 453

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 233
Non-Departmental
454

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
234 | Annual Operating Budget

DEPARTMENT OVERVIEW

MISSION
Non-Departmental is a cost center for general administrative expenditures such as the Retiree Medical Contribution, CalPERS Replacement Benefit and Property Tax Administrative Fees. It also reflects Operating Transfers Out to the Capital Improvement Program and other City funds. 455

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 235

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
GENERAL FUND 001
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 0 (3,477,724) 0 3,477,724 -100.0% OPERATIONS & MAINTENANCE Total 1,325,733 627,500 568,636 (58,864) -9.38% CAPITAL OUTLAY Total 138,633 0 0 0 0.0%
TRANSFERS Total 9,555,061 26,300,967 17,849,256 (8,451,711) -32.13% Division Total 11,019,427 23,450,743 18,417,892 (5,032,851) -21.46%

ANALYSIS/COMMENTS
Non-Departmental:

Non-Departmental expenditures are projected to decrease in FY26-27, primarily due to large one-time transfers associated with the City’s ongoing Debt/Liability Paydown Strategy. This includes an additional $9,349,256 contribution toward the City’s unfunded pension liability. No transfers to the Capital Improvement Program are planned this year.

The Salaries & Benefits category reflected anticipated CalPERS employer contribution savings in FY25-26, whereas these savings are directly reflected in each department’s Salaries & Benefits budgets for FY26-27.

As of June 2026 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 (1,088,848) (531,153) 2 2023-24 7,000,000 10,792,003 3,254,000 14,538,003 (2,708,012) (361,552) 3 2024-25 5,000,000 2,913,492 7,913,492 (3,477,724) (1,107,923) 4 2025-26 5,000,000 17,267,833 22,267,833 (5,076,325) (148,263) 5 2026-27 9,349,256 9,349,256 (6,448,334) 381,014 6 2027-28 (6,918,347) 430,565
7 2028-29 (6,980,906) (538,830)
8 2029-30 (6,561,321) (1,910,000)
9 2030-31 (6,205,558) (1,931,889)
10 2031-32 (5,976,348) (990,439)
22,000,000 60,236,190 3,254,000 61,318,584 12,624,607 5,038,999 (51,441,723) (6,708,471) Total Interest Savings n/a 44,481,764 2,187,894 1,036,267 47,705,925 Funding Sources Payoff Schedule
456

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
236 | Annual Operating Budget 457

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 237
Temecula Community Services District
458

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
238 | 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
x Plan, program and implement a wide variety of leisure services and contract classes for residents of all ages and abilities.
x Participate in the Capital Improvement Program with projects that include developing new and/or improving existing parks and recreational facilities.
x 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.
x Create multi-media Community Outreach collateral to increase public awareness of Community Services programs, facilities, and events.

Recreation
x Provide a variety of recreational and competitive sporting opportunities Citywide. x Provide an all-inclusive year-round aquatics program. x Program, reserve and maintain the sports fields, pools, courts, and rinks for recreation and competitive leagues and tournaments.

Citywide Events
x Organize signature City events such as the Easter Egg Hunts, Fourth of July celebration, Santa’s Electric Light Parade, and Rod Run.
x Provide free family activities including annual CultureFest and seasonal Summer Concert series. x Provide co-sponsorship of funds or in-kind services for special events.

P17467TB409bA#y16 09b y
P 7467T 4 0bA#y60by P 7467T 4 bA#yy P17467TB412bA#y1y
459

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 239
Arts and Culture
x Enrich, educate, and entertain our community by providing cultural experiences through the fine and performing arts.
x Continue to strive for excellence by bringing in professional artists and continuing the traditional and unique programming through “Temecula Presents.”
x Partner with local schools and studios to offer enhanced artistic and cultural experiences to youth. x Serve as a significant cultural asset to the local and regional community. x Enrich, educate, and entertain the community by providing experiences in historical preservation and cultural learning.
x Supplement public education through use of traveling exhibits, historical walking tours, museum tours, and history contests.
x Fostering and strengthening friendship, opportunities, and cooperation with Sister Cities program partners and delegates.

Human Services
x Build and expand partnerships that improve the overall quality and coordination of services and programs. x Develop opportunities that support youth, young adults, persons with disabilities, senior citizens, and at-risk populations.
x Engage youth in student-based advisory boards which promote community and civic involvement. x Offer nutritional, health, and wellness education, and social programs for seniors. x Provide learning experiences, leadership development, and career and educational pathways for youth, young adults, older adults, and veterans through inclusive workforce opportunities. x Provide training among City staff and local key constituencies that serve persons with disabilities. x Provide outreach to the City's military and veteran community.

Administration
x Support City strategic initiatives that enhance community partnerships, optimize utilization of resources, and advance the mission of the organization.
x Participate in the Capital Improvement Program with projects that include developing new and/or improving existing parks and recreational facilities.
x 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. x Coordinate Homeless Outreach, prevention, and mitigation efforts with staff, community partners, businesses, and public safety.

P 749 T 58 bA#yy
P 749 T 583bA#yy P17492TB584bA#y1y P 749 T 585bA#yy
460

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
240 | Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Temecula Community Services District include:

Community Services
x Enhanced customer service experience and increased revenue by auditing existing rental facilities and procedures, and by working with the media team to promote City facilities. (Healthy & Livable City) x Finalized and released the new TCSD Marketing & Media guide to create consistency across all TCSD divisions and safeguard our brand’s reputation. (Healthy & Livable City) x Increased community classes and programs at the Temecula Community Center to maintain the number of classes offered to Temecula residents. (Healthy & Livable City) x Updated TCSD division webpages to ensure each provides the most up-to-date information. (Accountable & Responsive City Government)
Recreation
x Continued to provide a fun and safe environment at Summer Day Camp, featuring a wide variety activities. (Healthy & Livable City)
x Continued programming for leagues, rentals, and tournaments at Ronald Reagan Sports Park’s renovated hockey rink. (Healthy & Livable City)
x Created new programs and opportunities within the Teen Zone to increase membership. (Healthy & Livable City) x Created a Water Safety Program geared toward all ages and abilities to promote water safety, the importance of supervision around water activities, and swim lessons to reduce the risk of drowning. (Safe & Prepared Community)
x Established programming for public use of the new pickleball complex at Ronald Reagan Sports Park. (Healthy & Livable City)
x Planned, programmed, and operated two year-round and one seasonal aquatic centerswith a variety of classes and activities for a range of ages at the MRC, CRC and Chaparral High School. (Healthy & Livable City) Citywide Events
x Provided safe and family-friendly community events for all residents and visitors. (Healthy & Livable City) x Worked closely with the Riverside Sheriff’s Office, CAL FIRE, and Emergency Management to ensure the safety of all staff, spectators, and participants during events.(Safe & Prepared Community) Arts and Culture
x Continued to work with the local art community to expand opportunities for public art. (Healthy & Livable City) x Created strategic partnerships to increase area awareness about the Community Theater and its productions. (Healthy & Livable City)
P17515TB587bA#y1y
P 75 5T 588bA#yyy P 75 5T 589bA#yy P 75 5T 590bA#yyy
461

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 241
x Provided educational 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)
x Partnered with local schools to offer educational experiences via field trip tours, history project contests, and performance and visual arts. (Healthy & Livable City)
Human Services
x Conducted a City-focused homeless census to help connect individuals experiencing homelessness to shelters and local resources, in an effort to reduce the City’s incidence of homelessness. (Healthy & Livable City) x Developed programs to provide more valuable experiences to youth through workforce programs, such as CPR certifications, Food Handlers Certificate, and facility tours. (Healthy & Livable City) x Participated in the 2026 Point-In-Time Count and continue to reduce the City’s incidence of homelessness by providing outreach and connecting individuals to appropriate resources for stabilization. (Healthy & Livable City) x Continued to promote diversity of programs at the Margarita Recreation Center that meet the needs of the community. (Equity)
x Continued to offer the Margarita Recreation Center’s After School Program based on the needs of the community, which includes after school snack, homework/tutoring, literacy, enrichment, and recreation. (Equity)
x Provided comprehensive support to seniors and active adults at the Mary Phillips Senior Center by way of transportation service, meals and nutrition, health and wellness, recreation, and socialization. (Healthy & Livable City)
x Met the service demands of the Summer Food Service Program at the Mike Naggar Community Park. (Equity) x Ensured seamless operation of the summer day camp program (Camp SOAR) at the Margarita Recreation Center. (Equity)
x Collaborated with public and private agencies to leverage funds and resources that support youth, at-risk families, and individuals with disabilities. (Sustainable & Resilient City) x Developed community service opportunities that support the community (Veterans Appreciation Breakfast and Young Men’s Career Conference). (Equity)
Administration
x Continued to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the Department. (Accountable & Responsive City Government) x Continued to implement recommendations from the Community Services Master Plan. (Healthy & Livable City) x Continued to partner with Public Works to complete replacements of identified park playgrounds. (Sustainable & Resilient City)
x Worked with Community Services managers to accurately project budget needs and minimize variances. (Accountable & Responsive City Government)
P17534TB591bA#y1P17534TB591bA#y1
P17534TB592bA#y1P17534TB592bA#y1 P17534TB593bA#y1y P17534TB594bA#y1y 462

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
242 | Annual Operating Budget
x Provided library services including collections of books, periodicals, DVDs, CDs and resource databases geared for adults, teens, and children. Provided resources via a partnership between the Temecula Valley Unified School District. (Equity)
x 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)
x Provided Little Sprouts Seed Library in cooperation with Vlada’s Seeds of Life and sponsored by Friends of the Temecula Libraries, which provides free seeds to encourage families to grow a home garden and educate children about nutrition and sustainable gardening. (Healthy & Livable City) x Continued to offer lunch at the library pop-up at MRC. Library staff presented 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) x Promoted Teens Teaching Tech program in partnership with the Heart of Temecula Leo Club. This cross- generational program provides community service hours towards graduation requirements for teens who provide adults/seniors with one-on-one tutoring for electronic devices.(Equity) x Collaborated 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 earn volunteer service hours towards graduation requirements. (Healthy & Livable City)
x Served on the Audiovisual Automation RFP panel and coordinated with City’s IT and Emergency Management Departments to equip library to serve as secondary EOC for the City. (Safe & Prepared Community) x Provided new outreach and socialization with an Inclusive Social Hour for adults with special needs. (Equity) x Continued providing educational programs in coordination with the City’s Emergency Manager on Wildfire Preparedness and Earthquake Preparedness, and other safety topics. (Safe & Prepared Community)

GOALS AND OBJECTIVES
Current fiscal year goals from Temecula Community Services District include:

Community Services
x Enhance customer experience and increase revenue by auditing existing rental facilities and procedures, and working with the media team to promote City facilities. (Healthy & Livable City) x Increase community classes and programs held at the Temecula Community Center to maintain the number of classes offered to Temecula residents. (Healthy & Livable City) x Update the remaining TCSD division webpages to ensure each page provides our community with the most up- to-date information. (Accountable & Responsive City Government) P 755 T 4 3bA#yy P755T44bA#yP755T44bA#y
P17551TB492bA#y1P 755 T 49 bA#y
P 755 T 493bA#yy
463

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 243
Recreation
x Provide a fun and safe environment during Summer Day Camp by featuring a wide variety of activities.(Healthy & Livable City)
x Continue to establish programming for leagues, rentals, and tournaments at Ronald Reagan Sports Park’s recently renovated hockey rink. (Healthy & Livable City) x Provide community service opportunities for teens at local non-profit organizations such as Mission Hope and Rose Haven Heritage Garden. (Healthy & Livable City)
x Continue to develop the Water Safety Program with multiple segments designed to serve individuals of all ages and abilities. (Safe & Prepared Community)
x Continue to plan, program, and operate two year-round aquatic centers offering a wide variety recreational opportunities for individuals of all ages and abilities at the MRC and CRC aquatic centers. (Healthy & Livable City) x Continue to invest in the training and professional development of aquatic staff to maintain the highest standards of safety, customer service, and program quality set by the Temecula Aquatics Division. (Safe & Prepared Community)
Citywide Events
x Provide safe and family-friendly community events for all residents and visitors. (Healthy & Livable City) x Work closely with the Riverside Sheriff’s Office, CAL FIRE, and Emergency Management to ensure the safety of all staff, spectators, and participants during events.(Safe & Prepared Community) Arts and Culture
x Promote and enhance cultural exchange, encourage community engagement and volunteer opportunities, and develop youth exchange programs for the Sister Cities program. (Economic Prosperity) x Create strategic partnerships to increase area awareness about the Community Theater and its productions. (Healthy & Livable City)
x Promote arts education and creativity through performance and visual arts with local schools. (Healthy & Livable City)
x Enrich, educate, and entertain our community by providing experiences in historical preservation, cultural learning, and fine art.(Healthy & Livable City)
x Supplement public education through use of traveling exhibits, historical walking tours, museum tours, and historical monthly events. (Healthy & Livable City)
x Partner with local schools to offer educational experiences to youth through field trip tours and history project contests. (Healthy & Livable City)
x Serve as a significant cultural asset to the local and regional community through Culture Day celebrations, guest lectures, gallery talks, and strategic partnerships. (Healthy & Livable City) x Continue to work with the local art community to expand opportunities for public art. (Healthy & Livable City) P 7558T 595bA#yy P17558TB596bA#y1y
P 7558T 597bA#yy P 7558T 598bA#yy
464

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
244 | Annual Operating Budget
Human Services
x Enhance and promote diversity of programs at the Margarita Recreation Center to meet the needs of the community.(Equity)
x Continue to offer the SOAR After School Program at the Margarita Recreation Center to support recreation, enrichment and socialization of local Temecula youth. (Equity) x Continue to offer the SOAR Homeschool Club at the Margarita Recreation Center for youth who participate in a homeschool program and assess the recreation needs of the local area youth and families who are homeschooled. (Equity)
x Enhance and refresh programs and services for seniors and active adults at the Mary Phillips Senior Center by way of transportation, meals and nutrition, health and wellness, recreation and socialization. (Healthy & Livable City)
x Continue to address the top priorities of the senior community based on the Senior Services Master Plan (SSMP) and the 10-year SSMP Retrospective. (Healthy & Livable City) x Meet the service demands of the Summer Food Service Program at the Mike Naggar Community Park. (Equity) x Implement the first Specialized Summer Camp for youth with special needs at the Margarita Recreation Center. (Equity)
x Continue to provide community service opportunities that support youth, young adults, individuals with disabilities, and veterans with workforce programs. (Equity) x Partner with Mission Hope to provide bridge housing to unsheltered households with children. (Healthy & Livable City)
x Provide assistance through Flexible Family Assistance to end or prevent homelessness for vulnerable households with children through rapid rehousing, housing retention, and emergency motel stays. (Healthy & Livable City)
x Conduct a City-focused homeless census to gather data that will help connect individuals experiencing homelessness to shelters and local resources in an effort to reduce the City’s incidence of homelessness. (Healthy & Livable City)
x Participate in the 2027 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)
Administration
x Continue to seek grant funding to increase recreation opportunities for underserved populations and address funding gaps within the department. (Accountable & Responsive City Government) x Continue to implement recommendations from the Community Services Master Plan.(Healthy & Livable City) x Continue to partner with Public Works to complete Community Services’ Capital Improvement Projects, and maintain City facilities and parks. (Healthy & Livable City) P 7585T 599bA#yPP 7585T 599bA#y P 7585T 600bA#yy P17585TB601bA#y1y P 7585T 60 bA#yy 465

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 245
x Collaborate with Community Services managers to accurately project budget needs and minimize variances. (Accountable & Responsive City Government)
x Continue to clear dangerous and unhealthy encampments within City limits. (Healthy & Livable City) x Continue providing library services including collections of books, periodicals, DVDs, CDs and resource databases geared for adults, teens and children, and resources via a partnership between the Temecula Valley Unified School District. (Equity)
x Provide free legal assistance and resources in the library, plus informative programming on legal issues through continuing partnership with the Riverside County Law Library and the Temecula Law Resource Center. (Equity) x Provide free seeds to encourage families to grow a home garden and educate children about nutrition and sustainable gardening. (Healthy & Livable City)
x Provide weekly story time, crafts and free books to build home libraries at inclusive, partial-day camp for children with developmental disabilities over the summer,and at monthly S.O.A.R. After School Program library visits during the school year. (Equity)
x Promote Teens Teaching Tech program in partnership with the Heart of Leo Club, to offer adults and seniors one-on-one tutoring on electronic devices in exchange for student community service hours for graduation. (Equity)
x Collaborate with TVUSD to host the Technology Homework Center with computers, Wi-Fi, study space, free peer tutoring and homework assistance to K-12 students, five days a week. Peer tutors earn volunteer service hours towards graduation. (Healthy & Livable City)
x Coordinate with the City’s IT and Emergency Management Departments to equip the library to serve as secondary EOC for the City, and to offer quarterly safety and preparedness classes.(Safe & Prepared Community) x Provide ongoing BiblioBabble Book Club for adults to promote literacy and community. (Healthy & Livable City) x Provide Inclusive Social Hour for adults with special needs and Inclusive Storytimes for all ages to foster socialization and community.(Equity)
x Collaborate with the Native Plant Network and City to seek funding for additional native plants, maintenance, enhancements,and programming about monarch migration and pollinator gardens to educate families. (Healthy & Livable City)
x Promote literacy for all ages through year-round reading challenges. (Healthy & Livable City) P17601TB604bA#y1y P 760 T 605bA#yy P17601TB606bA#y1P 760 T 606bA#y P17601TB607bA#y1y 466

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
246 | Annual Operating Budget

ORGANIZATIONAL CHART
467

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 247

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
TEMECULA COMMUNITY SERVICES DISTRICT FUND 190
CITYWIDE OPERATIONS 180
SALARIES & BENEFITS Total 11,070,376 11,435,540 10,856,795 (578,746) -5.06% OPERATIONS & MAINTENANCE Total 4,617,399 4,178,624 4,138,798 (39,826) -0.95% INTERNAL SERVICE FUND ALLOCATIONS Total 2,644,917 2,810,386 2,650,433 (159,953) -5.69% Division Total 18,332,692 18,424,551 17,646,026 (778,525) -4.23%

OPERATIONS - MAINTENANCE
SALARIES & BENEFITS Total 805,325 971,314 1,095,048 123,734 12.74% OPERATIONS & MAINTENANCE Total 1,193,602 1,125,222 929,116 (196,106) -17.43% Division Total 1,998,927 2,096,536 2,024,164 (72,372) -3.45% TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 191 OPERATIONS 180
OPERATIONS & MAINTENANCE Total 0 20,000 40,000 20,000 100.0% Division Total 0 20,000 40,000 20,000 100.0%
TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 192
OPERATIONS 180
SALARIES & BENEFITS Total 0 206,647 212,894 6,247 3.02% OPERATIONS & MAINTENANCE Total 364,803 436,488 483,688 47,200 10.81% INTERNAL SERVICE FUND ALLOCATIONS Total 0 36,603 40,643 4,040 11.04% TRANSFERS Total 200,000 0 0 0 0.0%
Division Total 564,803 679,738 737,225 57,487 8.46%
SERVICE LEVEL "C" ZONES 1-29
OPERATIONS 180
OPERATIONS & MAINTENANCE Total 1,526,293 1,668,781 1,733,047 64,266 3.85% TRANSFERS Total 39,117 692 0 (692) -100.0%
Division Total 1,565,410 1,669,473 1,733,047 63,574 3.81% 468

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
248 | Annual Operating Budget
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 194
OPERATIONS 180
SALARIES & BENEFITS Total 70,288 82,946 96,021 13,075 15.76% OPERATIONS & MAINTENANCE Total 10,665,883 10,921,662 11,803,068 881,406 8.07% Division Total 10,736,172 11,004,608 11,899,089 894,481 8.13%

OPERATIONS - DEPARTMENT OF CONSERVATION GRANT
CAPITAL OUTLAY Total 23,405 39,109 0 (39,109) -100.0%
Division Total 23,405 39,109 0 (39,109) -100.0%
OPERATIONS - SB 1383 CAL RECYCLE GRANT
OPERATIONS & MAINTENANCE Total 162,160 235,789 0 (235,789) -100.0% Division Total 162,160 235,789 0 (235,789) -100.0%
TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 196
OPERATIONS 180
SALARIES & BENEFITS Total 13,319 14,976 14,364 (611) -4.08% OPERATIONS & MAINTENANCE Total 288,123 361,600 356,000 (5,600) -1.55% Division Total 301,441 376,576 370,364 (6,211) -1.65%
TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 195
OPERATIONS 180
OPERATIONS & MAINTENANCE Total 274 2,434 10,434 8,000 328.68% Division Total 274 2,434 10,434 8,000 328.68%
TEMECULA LIBRARY FUND 197
OPERATIONS 180
OPERATIONS & MAINTENANCE Total 222,663 248,103 440,084 191,981 77.38% INTERNAL SERVICE FUND ALLOCATIONS Total 381,529 541,414 758,663 217,249 40.13% Division Total 604,192 789,517 1,198,747 409,230 51.83%

OPERATIONS - MAINTENANCE
SALARIES & BENEFITS Total 282,939 345,661 298,756 (46,905) -13.57% OPERATIONS & MAINTENANCE Total 294,596 335,858 326,658 (9,200) -2.74% CAPITAL OUTLAY Total 0 41,150 0 (41,150) -100.0%
Division Total 577,535 722,669 625,414 (97,255) -13.46% PUBLIC ART FUND 198
NON-DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 7,316 15,540 18,000 2,460 15.83% TRANSFERS Total 0 0 100,000 100,000 100.0%
Division Total 7,316 15,540 118,000 102,460 659.34%
469

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 249

ANALYSIS/COMMENTS
Citywide Operations:

TCSD Operational expenditures reflect a net decrease of 4.15% due to five vacant/unfunded positions and lower PERS rates, as well as decreased Other Outside Services and Utilities costs, offset by seven Part-Time Project Custodians added for FY26-27.

Service Level B:

Service Level B Expenditures reflect a net increase of 11.07% to accommodate increased costs of Street Lighting and Repair & Maintenance.

Service Level C:

Service Level C expenditures reflect an increase of 3.81% due to reassessment of parcels within the City limits.

Service Level D:

Service Level D expenditures reflect a net increase of 5.49% due to increasing waste hauling rates resulting from the contractually obligated consumer price index adjustments to keep pace with inflation, offset by the reduction of Grants the City expects to receive in FY26-27.

Service Level L:

Service Level L expenditures reflect a decrease of 1.65% due to decreased Utilities costs.

Service Level R:

Service Level R expenditures reflect a 328.68% increase to accommodate Emergency Street Maintenance costs.

Library:

Library expenditures reflect a net increase of 20.63% primarily due to the increased cost of Contracted Library Services through Riverside County, and increased technology costs allocated through the Internal Service Fund.

These are offset by decreased PERS rates in Salaries & Benefits and no Capital Outlay budget for FY26-27.

Public Art:

Public Art expenditures are increasing 659.34% to accommodate a Transfer Out to the Capital Improvement Program and continued work on the Utility Box Art project. 470

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
250 | Annual Operating Budget

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

PARKS AND RECREATION -
Assistant Director of Community Services 1.00 1.00 1.00 - Community Services Coordinator I 2.00 3.00 4.00 1.00
Community Services Coordinator II 3.00 3.00 2.00 (1.00) Community Services Manager 9.00 8.00 4.00 (4.00)
Community Services Specialist I/II 1.00 1.00 1.00 -
Community Services Superintendent 1.00 1.00 3.00 2.00
Community Services Supervisor I 5.00 7.00 5.00 (2.00)
Community Services Supervisor II 6.00 6.00 6.00 -
Community Services Supervisor I/II 1.00 - - -
Custodian II 1.10 1.10 0.80 (0.30)
Director of Community Services 1.00 1.00 1.00 -
Field Supervisor-Code Enforcement 0.05 0.05 - (0.05)
Field Supervisor-Trades 0.50 0.10 0.40 0.30
Landscape Inspector II 0.20 0.20 0.20 -
Lead Maintenance Worker-Electrician 0.40 0.40 0.50 0.10 Lead Maintenance Worker-Facilities 0.10 - 0.50 0.50
Lead Maintenance Worker-HVAC 0.50 0.50 0.50 -
Lead Maintenance Worker-Trades - - 0.55 0.55
Maintenance Superintendent 0.30 0.30 0.30 -
Maintenance Worker I - Facilities 0.45 0.45 - (0.45)
Maintenance Worker II - Facilities 1.50 1.95 1.15 (0.80) Management Assistant 1.00 1.00 1.00 -
Multimedia Coordinator 2.00 2.00 2.00 -
Office Specialist II 1.00 - - -
Principal Management Analyst 1.00 1.00 - (1.00)
Senior Landscape Inspector 0.20 0.20 0.20 -
Theater Technical Coordinator I 1.00 1.00 1.00 -
Theater Technical Specialist II 1.00 1.00 1.00 -
Total 42.30 42.25 37.10 (5.15)

SERVICE LEVEL B -
Senior Signal Technician - 0.80 0.80 -
Signal Technician I - 0.40 0.40 -
Total - 1.20 1.20 -

SERVICE LEVEL D -
Maintenance Manager 0.15 0.15 0.15 -
Management Analyst - 0.20 - (0.20)
Management Assistant 0.20 - - -
Principal Management Analyst 0.05 - - -
Senior Management Analyst - - 0.25 0.25
471

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 251
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr
Senior Office Specialist - - 0.10 0.10
Total 0.40 0.35 0.50 0.15

SERVICE LEVEL L -
Maintenance Superintendent 0.05 0.05 0.05 -
Total 0.05 0.05 0.05 -

LIBRARY -
Custodian II 0.30 0.30 0.30 -
Field Supervisor-Trades 0.10 0.10 0.10 -
Landscape Inspector II 0.10 0.05 0.05 -
Lead Maintenance Worker-Electrician 0.15 0.10 0.10 -
Lead Maintenance Worker-HVAC 0.15 0.10 0.10 -
Lead Maintenance Worker-Trades - - 0.05 0.05
Maintenance Superintendent 0.10 0.10 0.10 -
Maintenance Worker I - Facilities 0.25 0.25 - (0.25)
Maintenance Worker II - Facilities 0.35 0.60 0.50 (0.10) Senior Landscape Inspector 0.10 0.10 0.10 -
Total 1.60 1.70 1.40 (0.30)
Grand Total 44.35 45.55 40.25 (5.30)
*This decrease reflects five positions defunded for FY26-27 (two Community Service Managers, one Community Services Superintendent, and two Community Services Supervisor I/II), a reallocation of 0.05 FTE to the Community Development Department, and a reallocation of 0.25 FTE to the Internal Service Fund’s Facilities division. 472

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
252 | Annual Operating Budget 473

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 253
Internal Services Funds
474

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
254 | Annual Operating Budget
Insurance

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
INSURANCE FUND 300
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 215,356 273,382 243,130 (30,252) -11.07% OPERATIONS & MAINTENANCE Total 3,140,788 3,476,935 3,648,524 171,589 4.94% Division Total 3,356,143 3,750,317 3,891,654 141,337 3.77%

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 3.77% due to higher Insurance premiums, offset by lower PERS rates and staffing vacancies reflected in the Salaries & Benefits.

PERSONNEL ALLOCATION
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

INSURANCE -
Assistant Director of HR/Risk Management - - 0.25 0.25
Director of HR/Risk Management 0.25 0.25 - (0.25)
Management Analyst - - 0.45 0.45
Management Assistant (Confidential) 0.10 0.45 - (0.45)
Risk Manager - - 0.45 0.45
Senior Management Analyst 0.45 0.45 - (0.45)
Total 0.80 1.15 1.15 -
475

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 255
Workers’ Compensation

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
WORKERS' COMPENSATION FUND 305
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 200,224 273,564 243,640 (29,924) -10.94% OPERATIONS & MAINTENANCE Total 349,407 422,272 383,605 (38,667) -9.16% Division Total 549,631 695,835 627,245 (68,590) -9.86%

ANALYSIS/COMMENTS
Workers’ Compensation
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 decrease by 9.86% due to lower PERS rates and staffing vacancies, and lower Worker’s Compensation Claims costs.

PERSONNEL ALLOCATION
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

WORKERS' COMPENSATION -
Assistant Director of HR/Risk Management - - 0.25 0.25
Director of HR/Risk Management 0.25 0.25 - (0.25)
Management Analyst - - 0.45 0.45
Management Assistant (Confidential) - 0.45 - (0.45)
Risk Manager - - 0.45 0.45
Senior Management Analyst 0.45 0.45 - (0.45)
Total 0.70 1.15 1.15 -
476

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
256 | Annual Operating Budget
Vehicles and Equipment

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
VEHICLES AND EQUIPMENT FUND 310
NON-DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 378,379 429,527 429,527 0 0.0% CAPITAL OUTLAY Total 495 506,451 495,000 (11,451) -2.26% Division Total 378,874 935,978 924,527 (11,451) -1.22%

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.
477

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 257
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
x 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. x Provide technical support, manage applications, and assess needs to assist in business process analysis. x Provide public and staff access to the City’s online application for generating maps and conducting geographic analysis.
x Maintain and support the City’s website and utilize social media and E-Government services to provide official information to the public.
x Provide technical support for City emergency operations and emergency communications.

Support Services
x 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. x Provide central printing services for Citywide departments and off-site facilities, mailroom services, and auxiliary services (laminating, folder/inserter, wide-format printing, binding). x Manage the Canon copier lease/maintenance/replacement for the Civic Center and off-site facilities, including the Library.

P 8666T 4 6bA#yy P 8666T 4 7bA#yy P 8666T 4 8bA#yy P18666TB419bA#y1y 478

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
258 | Annual Operating Budget

ACCOMPLISHMENTS
Prior fiscal year accomplishments from Information Technology include:

Information Technology and Support Services
x Offered 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) x Enriched and enhanced 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) x Improved the resilience and reliability of the City network through the testing of disaster recovery and other City security systems. (Accountable & Responsive City Government) x Delivered 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
x Offered increased reliability and improved staff efficiency through the life cycle replacement of City copiers. (Accountable & Responsive City Government)
x Coordinated and oversaw managed print services for all public and staff copy machines throughout the Civic Center and all off-site facilities. (Accountable & Responsive City Government) x Provided 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) P18680TB420bA#y1y P 8680T 4 bA#yy P 8680T 4 bA#yy P18680TB423bA#y1y 479

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 259

GOALS AND OBJECTIVES
Current fiscal year goals from Information Technology include:

Information Technology and Support Services
x Enhance public engagement by replacing and modernizing Council Chamber audio and video production equipment to provide high quality, professional broadcast and streaming services. (Accountable & Responsive City Government)
x Enhance public safety for residents and visitors by expanding, modernizing, and managing the City’s security camera systems across facilities and traffic intersections, including the installation of new technologies and the ongoing operation and maintenance of existing infrastructure. (Safe & Prepared City) x Strengthen organizational security, resilience, and staff productivity by implementing robust cybersecurity practices, including the timely updating, patching, and lifecycle management of software applications and technology infrastructure. (Accountable & Responsive City Government) x Improve equitable access to public meetings and civic engagement by implementing California Senate Bill 707 requirements and enhancing ADA compliant tools and practices to ensure inclusive participation for all community members. (Equity)
x Enhance organizational communication and service responsiveness by implementing a reliable, redundant, cloud-based Voice over IP (VoIP) telephone system that supports efficient interactions with residents and staff. (Accountable & Responsive City Government)
x Strengthen accountability and operational effectiveness by auditing and updating department plans, policies, and procedures to ensure Information Technology operations align with industry best practices. (Accountable & Responsive City Government)
Support Services
x Improve reliability and staff efficiency through the lifecycle replacement and modernization of City copiers. (Accountable & Responsive City Government)
x Coordinate and oversee managed print services for all staff copy machines across the Civic Center and offsite facilities to ensure consistent, efficient operations. (Accountable & Responsive City Government) x Provide centralized mail room and copy center services, including large format printing, laminating, folding/inserting, and binding, to support Citywide departments and offsite facilities. (Accountable & Responsive City Government)
P18695TB578bA#y1y P 8695T 579bA#yy P 8695T 580bA#yy P18695TB581bA#y1y 480

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
260 | Annual Operating Budget

ORGANIZATIONAL CHART
481

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 261

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
INFORMATION TECHNOLOGY FUND 320
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 2,269,590 2,453,184 2,387,394 (65,790) -2.68% OPERATIONS & MAINTENANCE Total 3,392,093 3,529,942 3,754,700 224,758 6.37% CAPITAL OUTLAY Total (396,398) 0 0 0 0.0%
TRANSFERS Total 1,748,615 0 0 0 0.0%
Division Total 7,013,900 5,983,126 6,142,094 158,968 2.66% GIS-GEOGRAPHIC INFORMATION TECHNOLOGY 610
SALARIES & BENEFITS Total 442,513 473,880 455,396 (18,483) -3.9% OPERATIONS & MAINTENANCE Total 28,855 108,875 109,875 1,000 0.92% Division Total 471,368 582,755 565,271 (17,483) -3.0%
LIBRARY-INFORMATION TECHNOLOGY 620
SALARIES & BENEFITS Total 224,928 275,837 268,751 (7,087) -2.57% OPERATIONS & MAINTENANCE Total 68,430 85,200 90,700 5,500 6.46% Division Total 293,357 361,037 359,451 (1,587) -0.44%
TECHNOLOGY REPLACEMENT FUND 325
NON-DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 231,684 151,158 151,158 0 0.0% CAPITAL OUTLAY Total 3,500 319,552 325,000 5,448 1.7%
TRANSFERS Total 157,724 543,782 50,000 (493,782) -90.81% Division Total 392,908 1,014,491 526,158 (488,333) -48.14% SUPPORT SERVICES FUND 330
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 260,700 312,201 308,700 (3,500) -1.12% OPERATIONS & MAINTENANCE Total 121,917 134,000 139,000 5,000 3.73% Division Total 382,617 446,201 447,700 1,500 0.34%
SUPPORT SERVICES REPLACEMENT FUND 335
NON-DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 1,597 42,200 42,200 0 0.0% CAPITAL OUTLAY Total 1,235 30,000 30,000 0 0.0%
Division Total 2,832 72,200 72,200 0 0.0%
PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 125
NON-DEPARTMENTAL 199
CAPITAL OUTLAY Total 57,396 135,058 325,000 189,942 140.64% Division Total 57,396 135,058 325,000 189,942 140.64%
482

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
262 | Annual Operating Budget

ANALYSIS/COMMENTS
Information Technology:

Information Technology expenses reflect a net increase of 2.02% primarily due to increased Telephone Service and Software & Maintenance costs, offset by lower PERS rates within the Salaries & Benefits.

Technology Replacement:

Technology Replacement Capital Outlay expenditures total $325,000 to replace network switches ($85,000), the City’s phone system ($115,000) and to fund the annual computer lifecycle replacement program ($125,000).

Additionally, the Transfer Out to support Capital programs has decreased for FY26-27.

Support Services:

Support Services expenses reflect a slight increase to reflect higher costs of Software & Maintenance and Office Supplies, offset by lower PERS rates in Salaries & Benefits.

Support Services Replacement:

Support Services Replacement reflects no change in year-over-year budget.

Public Education & Government:

PEG expenses total $325,000 for the replacement of general audiovisual production equipment ($25,000) and the audiovisual equipment within Council Chambers ($300,000). 483

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 263

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

INFORMATION TECHNOLOGY -
Assistant Director of IT/SS 1.00 1.00 1.00 -
Director of Information Technology 1.00 1.00 1.00 -
Information Technology Manager 1.00 1.00 1.00 -
Information Technology Specialist I 1.00 2.00 2.00 -
Information Technology Specialist II 1.00 - - -
Information Technology Supervisor 5.00 5.00 5.00 -
Information Technology Technician l/II 0.50 1.00 1.00 - Management Analyst 1.00 1.00 1.00 -
Senior Administrative Assistant 1.00 1.00 1.00 -
Senior Information Technology Specialist 2.00 2.00 2.00 - Support Services Supervisor 0.10 0.10 0.10 -
Total 14.60 15.10 15.10 -

SUPPORT SERVICES -
Information Technology Technician l/II 0.50 - - -
Office Specialist - AM 0.60 0.60 0.60 -
Office Specialist - PM 0.60 0.60 0.60 -
Support Services Supervisor 0.90 0.90 0.90 -
Total 2.60 2.10 2.10 -
Grand Total 17.20 17.20 17.20 -
484

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
264 | Annual Operating Budget
Facilities

EXPENDITURES BY CATEGORY
2024-25
Actuals
2025-26
Current
Budget
2026-27
Proposed
Budget
Increase/
(Decrease)
%
Increase/
(Decrease)
FACILITIES FUND 340
NON-DEPARTMENTAL 199
SALARIES & BENEFITS Total 617,234 759,844 834,816 74,972 9.87% OPERATIONS & MAINTENANCE Total 1,045,157 936,260 922,025 (14,235) -1.52% TRANSFERS Total 606,326 0 0 0 0.0%
Division Total 2,268,717 1,696,104 1,756,842 60,738 3.58% FACILITY REPLACEMENT FUND 350
NON-DEPARTMENTAL 199
OPERATIONS & MAINTENANCE Total 81,875 87,338 87,338 0 0.0% CAPITAL OUTLAY Total 21,920 0 358,096 358,096 100.0%
TRANSFERS Total 483,211 3,239,183 1,500,000 (1,739,183) -53.69% Division Total 587,006 3,326,521 1,945,434 (1,381,087) -41.52%

ANALYSIS/COMMENTS
Facilities:

Facilities departmental expenditures are projected to decrease by a net 26.3% over the prior year due to the decreased transfer of funding to the Capital Improvement Program Fund for the City Facilities Rehabilitation project, offset by the Capital Outlay budget added to FY26-27 to support the audio system upgrade at the Community Theater.
485

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 265

PERSONNEL ALLOCATIONS
Adopted
2024-25
Current
2025-26
Proposed
2026-27
Incr/(Decr)
from Prior Yr

FACILITIES -
Custodian II 0.40 0.40 0.80 0.40
Director of Public Works 0.10 0.10 0.10 -
Field Supervisor-Trades 0.25 0.80 0.40 (0.40)
Lead Maintenance Worker-Electrician 0.30 0.30 0.40 0.10 Lead Maintenance Worker-Facilities 0.80 - 0.50 0.50
Lead Maintenance Worker-HVAC 0.35 0.35 0.35 -
Lead Maintenance Worker-Trades - - 0.40 0.40
Maintenance Superintendent 0.50 0.50 0.50 -
Maintenance Worker I - Facilities 0.30 0.30 - (0.30)
Maintenance Worker II - Facilities 0.15 0.45 0.35 (0.10) Management Analyst - 0.20 - (0.20)
Management Assistant 0.20 - - -
Principal Management Analyst 0.05 - - -
Senior Management Analyst - - 0.25 0.25
Total 3.40 3.40 4.05 0.65
*This increase reflects a reallocation of 0.25 FTE from the Temecula Community Services District, and 0.40 FTE from the Public Works Department.
486

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
266 | Annual Operating Budget 487

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 267
Capital Improvement Program
CIP –Capital Improvement Program Summary

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 2027-31 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

5. Sustainable & Resilient City

6. Accountable & Responsive City Government

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 toprovide 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. 488

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
268 | 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:

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.

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.

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.

The project will be an improvement to the community but does not necessarily need to be completed within a five-year capital improvement program time frame.

FISCAL YEARS 2027-31 CAPITAL IMPROVEMENT PROGRAM SUMMARY The CIP includes a total of $916,322,680 in identified capital projects, with a total of $633,566,842 in project funding, representing 69% of all Project Costs. There is $282,755,838 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.

LEVEL I:

LEVEL II:

LEVEL III:

FUTURE YEARS
PROJECTS:

Project
Type
Number of
Projects
Total Project
Cost
Circulation 19 659,137,242
Housing 4 20,971,000
Infrastructure 47 114,137,946
Parks/Rec 22 58,484,803
CFD-Funded 2 63,591,689
Total CIP 94 916,322,680
489

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 269

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 2027-31 CIP program reflects 64% from outside funding sources, with the remaining
36% provided by various City funds, including Measure S, Measure A, Development Impact Fee Funds, General
Fund, Capital Financing, and several other sources.

Four new projects have been added to the CIP, the Civic Center HVAC System Upgrade ($3,000,000), and the CRC Pool Cantilever Restoration ($400,000), these projects provide necessary upgrades to aging facility components.

The Ronald Reagan Sports Park Trail ($100,000) project includes the design and construction of this multi-use trail, and the Long Canyon Creek Park to Ynez Trail ($30,000) includes the design of this off-street route bicycle trail.

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 Adopted Operating Budget and the Five-Year Financial Projections.

Capital Project Operating Budget Account Description
2026-27
Proposed*
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
PW17-01/711 - CITY SECURITY CAMERA SYSTEM
5250 - OTHER OUTSIDE

SERVICES
Maintenance and Operations
of Security Camera System 300,000 300,000 300,000 300,000 300,000 FN19-01/724 - CITYWIDE FINANCIAL SYSTEM UPGRADE
5211 - SOFTWARE &

MAINTENANCE
Annual Software
Maintenance 86,000 86,000 86,000 86,000 86,000 PW21-09/683 - ELECTRIC VEHICLES CHARGING STATION
5215 - REPAIR & MAINTENANCE -

EQUIPMENT
Electric Charging Vehicles
Fees (33,100) (33,100) (33,100) (33,100) (33,100) PW17-19/690 - I-15/STATE ROUTE 79 SOUTH INTERCHANGE

ENHANCED LANDSCAPING
5415 - LANDSCAPE
MAINTENANCE Required by Caltrans 62,046 63,289 65,188 67,144 69,159 PW17-21/692 - MARGARITA RECREATION CENTER 5100 - SALARIES & WAGES Staffing for MRC (4
positions) 548,551 570,493 591,600 614,370 636,190 5119 - PART-TIME (PROJECT)
Project Staffing for MRC
(45 positions - 13.07 FTEs) 735,361 764,775 795,366 825,978 860,268 5240 - UTILITIES Additional Utility Costs 72,828 74,285 77,034 79,999 82,840 5250 - OTHER OUTSIDE Janitorial/Security 131,888 134,526 139,504 144,873 150,018 1,488,628 1,544,079 1,603,504 1,665,220 1,729,315
PWPE07-03/PW23-18 - LONG CANYON CREEK PARK

RESTROOMS
5250 - OTHER OUTSIDE
SERVICES Janitorial Services 30,475 31,085 31,706 32,340 32,987 PWPE-07/155 - PARK RESTROOMS RENOVATIONS,

EXPANSION AND ADA IMPROVEMENTS
5250 - OTHER OUTSIDE
SERVICES Janitorial Services 28,154 28,717 29,292 29,878 30,476 PWPE07-02 - VAIL RANCH PARK RESTROOMS
5250 - OTHER OUTSIDE
SERVICES Janitorial Services 30,475 31,085 31,706 32,340 32,987 1,992,678 2,051,155 2,114,296 2,179,822 2,247,824
Operating cost impacts are estimated by the Project Manager. * 2026-27 Adopted O&M Impacts are included in the Adopted Operating Budget The Projected Operating impacts have been reflected in the City's General Fund and TCSD 5-Year Financial Forecasts.

Total Incremental Operating & Maintenance Impacts
Summary of Operating & Maintenance Impacts
490

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
270 | Annual Operating Budget
CIP – Description of Revenue Sources

DESCRIPTION OF REVENUE SOURCES
Affordable Housing Fund
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.

Assembly Bill 2766 (AB 2766)
State funds that are available to implement programs and projects that reduce air pollution from motor vehicles.

Capital Financing
Funding available through financing proceeds to be used for Capital Improvements.

Community Development Block Grant (CDBG)
The Federal Department of Housing and Urban Development (HUD) provides funds through the Community Development Block Grant Program (CDBG) for local community development, housing activities, and public services. The primary objective of the CDBG Program is the development of viable communities by providing decent housing, a suitable living environment, and expanded economic opportunities primarily focused on low- and moderate-income persons and neighborhoods.

Community Facilities District (CFD)
A tool that allows the City to construct desired and authorized public improvements with costs of the projects paid for by the benefitted properties within the boundaries of a designated area. The costs are then financed through the issuance of bonds payable over a period of years.

Community Project Funding/Congressionally Directed Spending CPF is appropriated and allocated from the General Fund for Transit Infrastructure Grants only on an annual basis and at the discretion of Congress. The total funding amounts are specified in the Consolidated Appropriations Act corresponding with each fiscal year, if applicable
Community Reinvestment Program
The fund was established to provide various community grants to support the local economy in its recovery from the COVID-19 global pandemic.

Department of Water Resources (DWR) Proposition 84
Funding made available from the State of California Department of Water Resources funding from the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006. 2015 Proposition 84 Integrated Regional Water Management (IRWM) Implementation Grant, California Public Resources Code Section 75026 of Divisions 26.5 of the California Water Code (CWC).

Development Impact Fees (DIF)
Fees generated by development applications to offset the effect of development to include infrastructure, fire protection, public facilities and services, libraries, roads, schools, parks, traffic signal mitigation and open space/public art. Fees are determined by the cost of the project at the time of application.

Facilities Replacement Fund
This Fund was established to accumulate resources necessary to replacement future Facilities systems, equipment and fixtures.

Gax Tax Fund
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.

General Fund
City General Funds retained for capital improvement projects.

Highway Safety Improvement Program
The Highway Safety Improvement Program (HSIP), codified as Section 148 of Title 23, United States Code (23 U.S.C §148), is a core federal-aid program to States for the purpose of achieving a significant reduction in fatalities and serious injuries on all public roads.
491

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 271

DESCRIPTION OF REVENUE SOURCES
Highway Bridge Program
This program is funded by Federal Highway Administration (FHWA) and authorized by United States Code (USC) Title 23, Section 144. The purpose of the Program is to replace or rehabilitate public highway bridges over waterways, other topographical barriers, other highways, or railroads when the State and the Federal Highway Administration determine that a bridge is significantly important and is unsafe because of structural deficiencies, physical deterioration, or functional obsolescence.

Infrastructure for Rebuilding America (INFRA)
The INFRA program provides dedicated, discretionary funding for projects that address critical issues facing our nation’s highways and bridges.

Local Early Action Planning (LEAP) Grant
This grant program is provided by the California Department of Housing and Community Development (HCD). LEAP provides one-time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th cycle Regional Housing Needs Allocation (RHNA).

Measure A (Local Streets and Roads)
Riverside County’s half-cent sales tax to fund transportation projects to improve local streets and roads, major highways, commuter rail, and public transit throughout Riverside County.

Measure S
Pursuant to Ordinance 16-06, on November 8, 2016, the people of Temecula approved a local 1% Transactions and Use Tax, effective on April 1, 2017, to maintain 9-1-1 emergency response times, prevent cuts to local paramedic, sheriff, fire protection, school safety patrols, youth/after-school, senior, disabled services, improve freeway interchanges, reduce traffic and provide for other general services.

Mobile Source Air Pollution Reduction Review Committee (MSRC) The MSRC is the Mobile Source Air Pollution Reduction Review Committee, established under state law (AB 2766) whose sole mission is to fund projects that reduce air pollution from motor vehicles within the South Coast Air District in Southern California.

Public Art Fund
Public Artwork enhances the quality of life for individuals living and working in the Temecula. This fund was adopted by City Council for design, acquisition, installation, improvement, maintenance and insurance of public artwork displayed on City property; offering of performing arts programs on City property for the community; and art education programs on City property for the community (provided, however, that not more than five percent of the fund’s annual budget shall be used for this purpose).

Quimby
The City’s park-in-lieu or park development fee is assessed under provisions of the Subdivision Map Act which allows the City to require the dedication of land or the payment of a fee in lieu of land to be used for the purchase (or development) of park property.

Reimbursements/Other
Funding made available from other agencies or sources on a reimbursement, donation, and contribution basis.

The actual agreement states the conditions of monies specific to a particular project.

Safe, Accountable, Flexible, Efficient, Transportation Equity Act - Legacy for Users (SAFETEA–LU) Signed into law on August 10, 2005, and provides for highways, highway safety, and public transportation to improve safety, reduce traffic congestion, and other activities related to solving transportation problems. This new program takes off where STP, TEA-21, and ISTEA left off. 492

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
272 | Annual Operating Budget

DESCRIPTION OF REVENUE SOURCES
Senate Bill 1/Road Repair and Accountability Act (RMRA)/Active Transportation Program (ATP) The State of California imposes per gallon excise and sales taxes on fuel sales, as well as registration taxes on motor vehicles, for allocation to agencies for transportation purposes. In 2017, the State established the Road Repair and Accountability Act (RMRA) to allocate a greater share of additional monies for transportation purposes.

Senate Bill 2
SB 2 (2017) is part of a $15 billion housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, SB 2 established a permanent source of revenue intended to increase the affordable housing stock in California. The PGP is intended for the preparation, adoption, and implementation of plans that streamline housing approvals and accelerate housing production.

Senate Bill 621
Represents a regional organization made up of tribal governments primarily within Riverside and San Bernardino counties. Tribal Alliance of Sovereign Indian Nations (TASIN) member tribes contribute a percentage of their gaming revenues to the Indian Gaming Special Distribution Fund (SDF), as established by the State Legislature, to offset the impacts of Indian gaming on public services and infrastructure.

Senate Bill 821
B 821, the Bicycle and Pedestrian Facilities Program, is provided through the Transportation Development Act (TDA), funded through a ¼ cent of the general sales tax collected statewide. The TDA provides two major sources of funding for public transportation: the Local Transportation Fund (LTF) and the State Transit Assistance (STA).

The LTF provides funding for essential transit and commuter rail services, SB 821 and planning. Each year, two percent of the LTF revenue is made available for use on bicycle and pedestrian facility projects through the SB 821 program.

Service Level C
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).

State Transportation Improvement Program (STIP)
The State Transportation Improvement Program (STIP) is the biennial five-year plan adopted by the California Transportation Commission (CTC) for future allocations of certain state transportation funds for state highway improvements, intercity rail, and regional highway and transit improvements. State law requires the Commission to update the STIP biennially, in even-numbered years, with each new STIP adding two new years to prior programming commitments.

State Highway Operation Protection Program & Minor Program (SHOPP) State Highway System’s program that funds repair and preservations, emergency repairs, safety improvements and some highway operational improvements.

Surface Transportation Program (STP)
Federal funds available for local agencies to improve the safety and efficiency of the local transportation system.

Sustainable Communities Program
The Sustainable Communities Program is a key Southern California Association of Governments (SCAG) initiative for implementing the 2016-2040 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS), combining Integrated Land Use assistance for integrated land use and transportation planning with Green Region assistance aimed at local sustainability and Active Transportation assistance for bicycle and pedestrian planning efforts.
493

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 273

DESCRIPTION OF REVENUE SOURCES
Tax Allocation Refunding Bonds Series 2017A and 2017B
As of January 31, 2012, the Redevelopment Agency of the City of Temecula has been dissolved and the City has elected to become the Successor Agency. The Successor Agency will be responsible for the winding down of the remaining activities of the dissolved Redevelopment Agency. These remaining activities include completing affordable housing and infrastructure projects that are funded with tax allocation bonds issued by the former redevelopment agency. The Series 2017A and 2017B Refunding Bonds were issued in 2017 to refinance 2002, 2006, 2007, 2010, and 2011 Tax Allocation Bonds to provide financing for low and moderate income housing projects. The outstanding bonds will be repaid in full in 2038. Monies to pay bond debt service is requested from the State and disbursed by the County from the Trust Fund established to accumulate tax increment generated by the former Temecula Redevelopment Agency area.

TEAM Fund
Expenditures reflect the transfer of funds to the Capital Improvement Program to fund an Electric Vehicle Charging Station project, lighting along Murrieta Creek and Sports Park Lighting upgrades.

Technology Replacement Fund
This fund is used for the replacements of computers, system Software and all other Information Technology equipment.

Transportation Uniform Mitigation Fee (TUMF)
Multi-jurisdictional development impact fee paid for by new development to provide the transportation infrastructure necessary to accommodate new development.

WRCOG-BEYOND Framework Fund Program
Local assistance funding program for Economic Development and Sustainability Projects. 494

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
274 | Annual Operating Budget
CIP –Capital Projects Revenue Summary

CAPITAL PROJECTS REVENUE SUMMARY
Category Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
City Funds
Affordable Housing 10,580,492 4,128,445 14,708,937
Assembly Bill 2766 441,723 637,835 170,000 175,000 185,000 185,000 185,000 1,979,558 Capital Financing 6,405,000 6,405,000
Community Reinvestment Program 237,309 6,166,691 6,404,000 Contribution of Land 561,000 570,000 1,300,000 2,431,000 Facilities Replacement Fund 2,834,176 3,239,184 1,500,000 1,000,000 1,000,000 1,000,000 4,400,000 14,973,360 Gas Tax 1,200,000 1,200,000
General Fund 17,153,704 1,953,133 19,106,837
Measure A 27,955,684 9,855,823 1,312,000 1,086,620 551,866 562,904 574,162 41,899,059 Measure S 46,883,448 32,687,242 4,296,247 2,308,710 438,660 2,048,710 78,660 88,741,676 Public Art Fund 100,000 100,000
RMRA - Road Repair & Accountability Act 12,442,942 6,907,425 2,883,697 3,743,911 3,940,332 4,044,276 3,812,417 37,775,000 Service Level C - Zone 28 499,308 692 500,000
Street Maintenance Fund 3,600,000 4,864,784 224,356 8,689,140 TEAM - Temecula Energy Efficiency Asset Fund 588,276 210,653 798,929 Technology Replacement Fund 219,752 543,782 50,000 813,534 Uptown Temecula New Streets In Lieu Fee 500,857 500,857 City Funds Total 131,041,815 72,257,544 11,106,300 9,614,241 6,115,858 7,840,890 9,050,239 247,026,887 Community Facility District Funds
CFD 01-02 (Harveston) 1,005,840 1,005,840
CFD 03-01 (Crowne Hill) 502,211 502,211
CFD 03-02 (Roripaugh Ranch) 38,413,523 8,331,133 46,744,656 CFD 16-01 (Roripaugh Ranch-Phase II) 6,722,850 6,722,850 Community Facility Districts Total 39,921,574 15,053,983 54,975,557 Development Impact Fee Funds
DIF-Corporate Facilities 1,305,738 752,131 2,057,869
DIF-Fire Protection Facilities 127,336 448,248 194,890 770,474 DIF-Library Facilities 322,875 617,125 940,000
DIF-Open Space & Trails 1,619,926 315,159 262,000 2,197,085 DIF-Park & Rec Improvements 5,437,113 748,783 2,000,000 8,185,896 DIF-Police Facilities 1,244,384 13,729 649,000 1,907,113 DIF-Quimby 4,672,161 2,923,233 500,000 1,000,000 9,095,394 DIF-Street Improvements 11,377,222 6,626,818 4,240,041 8,933,719 918,545 32,096,345 DIF-Traffic Signals 1,962,491 736,570 375,000 300,000 3,374,061 Development Impact Fees Total 28,069,247 13,181,795 6,220,931 8,933,719 4,218,545 60,624,237 495

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 275

CAPITAL PROJECTS REVENUE SUMMARY
Category Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Federal Grants
CDBG - Community Development Block Grant 2,496,060 561,636 657,180 325,000 325,000 325,000 325,000 5,014,876 CPFCDS- Community Project Funding/Congressionally
Directed Spending 2,000,000 2,000,000
HBP-Highway Bridge Program 1,218,308 3,236,692 21,065,000 25,520,000 INFRA - Infrastructure for Rebuilding America Grant 43,016,249 6,983,751 50,000,000 SAFETEA-LU - Safe, Accountable, Flexible, Efficient
Transportation 2,879,679 162,521 3,042,199
STP (RCTC) - Surface Transportation Program 12,279,728 696,272 12,976,000 Federal Grants Total 61,890,024 11,640,871 2,657,180 21,390,000 325,000 325,000 325,000 98,553,075 Reimbursements/Other
County AD 159 4,008,270 4,008,270
Developer Contribution 2,597,514 12,313,159 14,910,673
Reimbursement-Pechanga IGA 5,000,000 5,000,000
Reimbursements 9,340,369 4,326,852 13,667,221
Reimbursements/Other 1,190,582 1,190,582
Reimbursements/Other Total 18,128,465 20,648,281 38,776,746 State/Local Grants
Beyond Grant 19,857 19,857
Grants 1,483,092 3,547,034 5,030,126
HSIP- Highway Safety Improvement Program 186,510 3,750,130 3,936,640 MSRC-Mobile Source Air Review Committee Grant 111,574 29,426 141,000 Senate Bill 1 - Active Transportation Program 1,398,424 103,576 1,502,000 Senate Bill 621 14,446,520 160,000 14,606,520
Senate Bill 821 362,600 362,600
SHOPP - State Highway Operation & Protection
Program 1,250,000 1,250,000
STIP-Surface Transportation Improvement Program 38,478,724 14,121,276 52,600,000 State/Local Grants Total 57,374,701 22,074,042 79,448,743 Transportation Uniform Mitigation Fund (TUMF)
TUMF 1,438,000 1,438,000
TUMF (CETAP/RCTC) 7,223,465 2,475,482 9,698,947
TUMF (RCTC) 8,142,124 (673,562)7,468,562
TUMF (WRCOG) 23,958,693 11,597,396 35,556,089
Transportation Uniform Mitigation Fund (TUMF) Total 40,762,282 13,399,316 54,161,598 Grand Total 377,188,107 168,255,832 19,984,411 39,937,960 10,659,403 8,165,890 9,375,239 633,566,842 496

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
276 | Annual Operating Budget
CIP – Major Revenue Sources

CIP MAJOR REVENUE SOURCES
PROJECTED REVENUES: $633,466,842
497

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 277
CIP – Capital Project Expenditure Summary

CAPITAL PROJECT EXPENDITURE SUMMARY
Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Circulation Projects
Butterfield Stage Road Storm Drain Improvements 11,861,900 11,861,900 De Portola Road/Jedediah Smith Road Roundabout 538,821 3,930,179 4,469,000 Diaz Road Expansion 1,627,483 11,809,031 2,000,000 3,614,478 19,050,991 French Valley Parkway/I-15 Improvements - Phase II 120,303,913 19,447,434 200,000 139,951,346 French Valley Parkway/I-15 Improvements - Phase III 5,083,508 5,673,286 3,750,000 62,189,400 450,000 77,146,194 I-15 / French Valley Parkway Improvements-Phase IV 181,400,000 181,400,000 I-15 Congestion Relief 7,566,190 1,692,520 9,258,710
I-15/State Route 79 South Ultimate Interchange 49,363,108 1,728,789 51,091,897 La Paz Road Roundabout Reconstruction 5,847 3,003,153 800,000 3,809,000 Medians & Parkways - Citywide 666,838 100,000 766,838
Mercedes Street Sidewalk 1,400,000 350,000 1,750,000
Murrieta Creek Bridge At Overland 1,905,687 5,827,233 150,000 29,826,283 918,545 38,627,748 Overland Drive Extension Commerce Center 7,982,529 335,368 8,317,897 Overland Drive Widening 668,058 6,189,746 2,482,597 172,436 9,512,837 Pavement Rehabilitation Program - Citywide 50,700,213 8,035,568 4,195,697 4,342,371 4,492,198 4,192,200 4,386,579 80,344,826 Rancho California Road Median Improvements 135,284 822,716 7,500,000 8,458,000 Traffic Signal - Equipment Enhancement Program - Citywide 1,560,364 1,446,424 260,000 260,000 260,000 3,786,788 Traffic Signal - Installation - Citywide 1,914,517 693,166 375,000 300,000 3,282,683 Ynez Road Improvements - Phase I 437,571 4,081,216 1,731,800 6,250,587 Circulation Total 250,459,931 87,977,727 12,645,094 34,601,090 9,720,743 73,881,600 189,851,057 659,137,242 Housing Projects
Habitat for Humanity Old Town Units 1,261,000 1,261,000 Las Haciendas Affordable Housing Project 8,910,698 1,219,302 10,130,000 Uptown Temecula Affordable Housing Site 1,000,000 570,000 1,300,000 2,870,000 Vine Creek Affordable Housing Project 6,710,000 6,710,000 Housing Total 8,910,698 10,190,302 570,000 1,300,000 20,971,000 Infrastructure Projects
American With Disabilities Act (ADA) Transition Plan Implementation 830,709 805,957 735,840 403,660 403,660 403,660 403,660 3,987,146 Auto Mall Wayfinding Signs 65,953 669,265 735,218
Bike Lane And Trail Program - Citywide 418,913 187,835 170,000 175,000 185,000 185,000 1,144,558 2,466,305 Bike Lane and Trail Program - Great Oak Trail Lighting 497,902 354,906 232,000 1,084,808 Bike Lane And Trail Program - Temecula Creek South Side Trail 601,394 192,326 8,593,350 9,387,069 Bike Lane Upgrades - Citywide 50 274,450 274,500
Bridge Maintenance 176,766 849,554 488,160 300,000 1,814,480 498

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
278 | Annual Operating Budget

CAPITAL PROJECT EXPENDITURE SUMMARY
Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
City Facilities Rehabilitation 4,584,484 2,439,183 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 12,523,666 City Facility Security 119,948 155,052 275,000
City Security Camera System 3,739,813 3,739,813
Citywide Community Fire Protection Plan 950,000 950,000 Citywide Drainage Master Plan 653,181 198,372 60,000 911,553 Citywide Financial System Upgrade 890,494 486,224 50,000 1,426,718 Civic Center HVAC System Upgrade 3,000,000 3,000,000
Community Recreation Center (CRC) Renovations 5,651,404 484,470 6,135,874 Community Wildfire Protection Plan 216,004 161,996 378,000 Comprehensive General Plan Update 740,323 2,809,677 3,550,000 Electric Vehicles Charging Station 328,369 164,361 492,729 Fiber Optic Communications Systems - Citywide 132,165 75,835 208,000 Fire Station 73 Gym/Garage 734,562 4,431,118 1,554,602 6,720,282 Fire Station 84 Training Room Renovation 517,846 3,011,604 3,529,450 I-15/State Route 79 South Interchange Enhanced Landscaping 1,733,993 1,896,302 3,630,295 Interstate 15 Corridor Branding and Visioning Improvements 100,000 100,000 200,000 200,000 600,000 Library Alternate Emergency Operations Center Enhancements 250,938 449,062 700,000 Library Technology Enhancements 71,937 168,063 240,000
Local Roadway Safety Plan Update 155,000 155,000
Long Canyon Creek Park to Ynez Trail 30,000 30,000
Margarita Recreation Center 12,202,399 119,109 12,321,508 Mary Phillips Senior Center Enhancement And Renovation 2,218,995 2,218,995 Medians & Traffic Calming Improvements - Citywide 122,349 854,552 976,900 Murrieta Creek Improvements 2,533,703 303,898 2,837,601 Nicolas Road Multi-Use Trail Extension 2,000,000 2,000,000 Old Town Parking Structure 607,248 797,752 1,405,000
Old Town Temecula Parklets Program 122,309 327,691 450,000 Pavement Management Program Update 181,428 193,572 214,980 589,980 Pedestrian Ramp Upgrades - Citywide 69,922 205,078 275,000 Santa Gertrudis Creek Phase II - Margarita Under-Crossing 5,313,750 286,373 5,600,123 Sidewalks - Citywide 1,677,265 95,311 1,772,575
Sidewalks - Old Town Improvements 1,902,573 (73,989)1,828,585 Sidewalks - Pauba Road 193,552 1,063,572 1,257,124
Sixth Street Improvements 942,848 149,478 1,092,326
South Side Senior Center 100,000 100,000
Storm Drain Pipe Lining 87,652 965,448 1,870,050 1,870,050 4,793,200 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 107,846 464,854 572,700 Traffic Signal - Safety Lights and Signal Communications Upgrade- Citywide 280,775 2,975,125 3,255,900 499

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 279

CAPITAL PROJECT EXPENDITURE SUMMARY
Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Traffic Signal Fiber Optic Extension 25,515 239,485 1,410,000 1,675,000 Utility Undergrounding - Citywide 169,523 169,523
Infrastructure Total 51,716,798 32,437,918 5,782,442 3,936,870 10,282,010 4,173,690 5,808,218 114,137,946 Parks/Recreation Projects
Children's Museum Enhancement Project 375,366 169,724 545,090 Community Recreation Center Splash Pad & Shade Structures 2,544,472 32,675 2,577,147 CRC Pool Cantilever Restoration 400,000 400,000
Dog Park Renovation 1,177,366 1,177,366
Eagle Soar Splash Pad Rehabilitation 315,000 315,000
Empire Creek Improvements 18,594 452,355 4,191,230 4,662,179 Harveston Community Park Building Renovation and Expansion 227,861 4,269 232,130 Infill Recreational Amenities 353,986 46,014 400,000
Long Canyon Creek Park Restrooms 286,294 1,211,636 1,497,930 Mike Naggar Park Pickleball Court Conversion 200,000 200,000 Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements
595,868 133,932 729,800
Parks Improvement Program 3,809,224 269,149 4,078,374
Pickleball Courts 3,503,725 3,503,725
Playground Equipment Enhancement & Safety Surfacing 5,385,773 832,151 1,439,725 7,657,649 Ronald Reagan Sports Park Hockey Rink 936,172 3,184,234 4,120,406 Ronald Reagan Sports Park Skate Park 303,740 5,806,260 6,110,000 Ronald Reagan Sports Park Trail 100,000 100,000
Santiago Site - Community Garden 360,000 360,000
Sports Court Resurfacing 363,830 206,427 100,000 100,000 770,257 Sports Field Lighting - Light Emitting Diode (LED) Conversion 2,465,917 264,083 2,730,000 Uptown Temecula Sports Park 139,979 2,237,021 12,547,822 14,924,822 Vail Ranch Park Restrooms 322,311 1,070,619 1,392,930
Parks/Recreation Total 22,810,479 16,795,547 1,539,725 100,000 12,647,822 4,191,230 400,000 58,484,803 Projects Funded by Community Facilities District Bonds
Butterfield Stage Road Extension 39,925,377 1,481,653 41,407,029 Nicolas Road Extension & Improvements 11,784 22,172,876 22,184,660 Projects Funded by Community Facilities District Bonds Total 39,937,161 23,654,528 63,591,689 Total Capital Improvement Program 373,835,067 171,056,022 20,537,261 39,937,960 32,650,575 82,246,520 196,059,275 916,322,680 500

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
280 | Annual Operating Budget
CIP – Expenditure Summary by Project Type

EXPENDITURE SUMMARY BY PROJECT TYPE
PROJECTED EXPENDITURES: $916,322,680
501

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 281
CIP – Capital Projects Summary – by Funding Source
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Assembly Bill 2766
Bike Lane And Trail Program - Citywide 326,878 187,835 170,000 175,000 185,000 185,000 185,000 1,414,713 Bike Lane And Trail Program - Temecula Creek South Side Trail 67,845 0 0 0 0 0 0 67,845 Electric Vehicles Charging Station 47,000 0 0 0 0 0 0 47,000 Nicolas Road Multi-Use Trail Extension 0 450,000 0 0 0 0 0 450,000 Project Funding 441,723 637,835 170,000 175,000 185,000 185,000 185,000 1,979,558 Revenue Projection 1,035,073 166,694 156,828 159,965 163,164 166,427 169,756 Available Funding 593,350 122,209 109,037 94,002 72,166 53,593 38,348 Capital Financing
Margarita Recreation Center 6,405,000 0 0 0 0 0 0 6,405,000 Project Funding 6,405,000 0 0 0 0 0 0 6,405,000
Revenue Projection 6,405,000 0 0 0 0 0 0
Available Funding 0 0 0 0 0 0 0
Community Facility Districts
Butterfield Stage Road Extension 38,401,739 635,200 0 0 0 0 0 39,036,939 French Valley Parkway/I-15 Improvements - Phase II 1,005,840 0 0 0 0 0 0 1,005,840 I-15/State Route 79 South Ultimate Interchange 502,211 0 0 0 0 0 0 502,211 Nicolas Road Extension & Improvements 11,784 14,418,783 0 0 0 0 0 14,430,567 Project Funding 39,921,574 15,053,983 0 0 0 0 0 54,975,557 Revenue Projection 56,577,716 0 0 0 0 0 0
Available Funding 16,656,142 1,602,159 1,602,159 1,602,159 1,602,159 1,602,159 1,602,159 Community Reinvestment Program
Citywide Community Fire Protection Plan 0 179,000 0 0 0 0 0 179,000 Eagle Soar Splash Pad Rehabilitation 0 300,000 0 0 0 0 0 300,000 Old Town Temecula Parklets Program 122,309 327,691 0 0 0 0 0 450,000 Santiago Site - Community Garden 0 360,000 0 0 0 0 0 360,000 Uptown Temecula Affordable Housing Site 115,000 1,000,000 0 0 0 0 0 1,115,000 Vine Creek Affordable Housing Project 0 4,000,000 0 0 0 0 0 4,000,000 Project Funding 237,309 6,166,691 0 0 0 0 0 6,404,000
Revenue Projection 237,309 6,166,691 0 0 0 0 0
Available Funding 0 0 0 0 0 0 0
Development Impact Fees (DIF)
DIF - Corporate Facilities
City Facilities Rehabilitation 280,000 0 0 0 0 0 0 280,000 502

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
282 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
City Facility Security 0 25,000 0 0 0 0 0 25,000
City Security Camera System 752,087 0 0 0 0 0 0 752,087 Dog Park Renovation 100,000 0 0 0 0 0 0 100,000
Fire Station 73 Gym/Garage 43,651 50,000 0 0 0 0 0 93,651 Fire Station 84 Training Room Renovation 0 662,131 0 0 0 0 0 662,131 Murrieta Creek Improvements 130,000 15,000 0 0 0 0 0 145,000 Project Funding 1,305,738 752,131 0 0 0 0 0 2,057,869
Revenue Projection 1,581,869 135,309 653,180 565,071 224,475 129,440 132,028 Available Funding 276,131 (340,691)312,489 877,560 1,102,035 1,231,474 1,363,503 DIF - Fire Facilities
Fire Station 73 Gym/Garage 127,336 0 194,890 0 0 0 0 322,226 Fire Station 84 Training Room Renovation 0 448,248 0 0 0 0 0 448,248 Project Funding 127,336 448,248 194,890 0 0 0 0 770,474 Revenue Projection 179,847 52,380 538,232 424,544 184,330 141,714 144,549 Available Funding 52,511 (343,357)(15)424,529 608,859 750,573 895,122 DIF - Library
Library Alternate Emergency Operations Center Enhancements 250,938 449,062 0 0 0 0 0 700,000 Library Technology Enhancements 71,937 168,063 0 0 0 0 0 240,000 Project Funding 322,875 617,125 0 0 0 0 0 940,000
Revenue Projection 2,621,001 131,864 834,828 370,217 236,048 280,235 285,840 Available Funding 2,298,126 1,812,865 2,647,693 3,017,910 3,253,957 3,534,192 3,820,032 DIF - Open Space & Trails
Bike Lane And Trail Program - Citywide 72,177 0 0 0 0 0 0 72,177 Bike Lane and Trail Program - Great Oak Trail Lighting 0 0 232,000 0 0 0 0 232,000 Long Canyon Creek Park to Ynez Trail 0 0 30,000 0 0 0 0 30,000 Nicolas Road Multi-Use Trail Extension 300,000 0 0 0 0 0 0 300,000 Santa Gertrudis Creek Phase II - Margarita Under-Crossing 1,247,749 315,159 0 0 0 0 0 1,562,908 Project Funding 1,619,926 315,159 262,000 0 0 0 0 2,197,085 Revenue Projection 1,801,601 119,476 616,835 230,903 258,323 306,681 312,814 Available Funding 181,675 (14,008)340,827 571,730 830,054 1,136,734 1,449,548 DIF - Parks & Recreation
Children's Museum Enhancement Project 145,090 0 0 0 0 0 0 145,090 Community Recreation Center (CRC) Renovations 1,521,208 0 0 0 0 0 0 1,521,208 Margarita Recreation Center 600,000 0 0 0 0 0 0 600,000 503

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 283
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Pickleball Courts 1,450,000 0 0 0 0 0 0 1,450,000
Playground Equipment Enhancement & Safety Surfacing 1,040,000 0 0 0 0 0 0 1,040,000 Ronald Reagan Sports Park Hockey Rink 680,815 0 0 0 0 0 0 680,815 Ronald Reagan Sports Park Skate Park 0 334,159 0 0 0 0 0 334,159 South Side Senior Center 0 314,624 0 0 0 0 0 314,624
Uptown Temecula Sports Park 0 100,000 0 0 2,000,000 0 0 2,100,000 Project Funding 5,437,113 748,783 0 0 2,000,000 0 0 8,185,896 Revenue Projection 7,652,562 409,902 2,116,237 792,187 886,234 1,052,134 1,073,176 Available Funding 2,215,449 1,876,568

3,992,805 4,784,992 3,671,226 4,723,360 5,796,536
DIF - Police Facilities
City Security Camera System 1,121,113 0 0 0 0 0 0 1,121,113 Fiber Optic Communications Systems - Citywide 12,015 (12,015) 0 0 0 0 0 0 Margarita Recreation Center 111,256 25,744 0 0 0 0 0 137,000 Traffic Signal Fiber Optic Extension 0 0 649,000 0 0 0 0 649,000 Project Funding 1,244,384 13,729 649,000 0 0 0 0 1,907,113 Revenue Projection 1,527,981 93,834 477,209 251,906 232,155 227,501 232,051 Available Funding 283,597 363,702 191,911 443,817 675,972 903,473 1,135,525 DIF - Quimby
Community Recreation Center (CRC) Renovations 3,050,592 (15,000) 0 0 0 0 0 3,035,592 Harveston Community Park Building Renovation and Expansion 186,910 (14,780) 0 0 0 0 0 172,130 Infill Recreational Amenities 353,986 46,014 0 0 0 0 0 400,000 Parks Improvement Program 250,000 0 0 0 0 0 0 250,000
Pickleball Courts 261,000 0 0 0 0 0 0 261,000
Playground Equipment Enhancement & Safety Surfacing 440,000 500,000 500,000 0 0 0 0 1,440,000 Ronald Reagan Sports Park Hockey Rink 0 520,432 0 0 0 0 0 520,432 Ronald Reagan Sports Park Skate Park 0 1,016,240 0 0 0 0 0 1,016,240 Uptown Temecula Sports Park 129,673 870,327 0 0 1,000,000 0 0 2,000,000 Project Funding 4,672,161 2,923,233 500,000 0 1,000,000 0 0 9,095,394 Revenue Projection 7,763,687 591,945 997,030 8,835 9,012 9,192 9,376 Available Funding 3,091,526 760,238 1,257,268 1,266,103 275,115 284,307 293,682 DIF - Street Improvements
De Portola Road/Jedediah Smith Road Roundabout 538,987 1,970,013 0 0 0 0 0 2,509,000 Diaz Road Expansion 590 0 0 0 0 0 0 590
French Valley Parkway/I-15 Improvements - Phase II 75,360 0 0 0 0 0 0 75,360 504

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
284 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Medians & Parkways - Citywide 666,838 0 100,000 0 0 0 0 766,838 Medians & Traffic Calming Improvements - Citywide 40,000 0 0 0 0 0 0 40,000 Murrieta Creek Bridge At Overland 1,181,533 1,096,387 150,000 8,761,283 918,545 0 0 12,107,748 Overland Drive Extension Commerce Center 8,082,475 0 0 0 0 0 0 8,082,475 Overland Drive Widening 671,306 1,321,714 2,482,597 172,436 0 0 0 4,648,053 Rancho California Road Median Improvements 115,254 635,546 0 0 0 0 0 750,800 Ynez Road Improvements - Phase I 4,879 1,603,158 1,507,444 0 0 0 0 3,115,481 Project Funding 11,377,222 6,626,818 4,240,041 8,933,719 918,545 0 0 32,096,345 Revenue Projection 17,943,156 1,643,296 5,619,488 6,311,233 2,432,867 622,889 635,347 Available Funding 6,565,934 1,582,412 2,961,859 339,372 1,853,694 2,476,583 3,111,930 DIF - Traffic Signals
Traffic Signal - Equipment Enhancement Program - Citywide 541,788 0 0 0 0 0 0 541,788 Traffic Signal - Installation - Citywide 1,299,810 262,873 375,000 0 300,000 0 0 2,237,683 Traffic Signal - Safety Lights and Signal Communications Upgrade- Citywide 120,893 473,697 0 0 0 0 0 594,590 Project Funding 1,962,491 736,570 375,000 0 300,000 0 0 3,374,061 Revenue Projection 2,215,963 232,564 799,999 909,004 350,654 88,166 89,930 Available Funding 253,472 (250,533)174,466 1,083,470 1,134,124 1,222,290 1,312,220 Development Impact Fee Total Project Funding 28,069,247 13,181,795 6,220,931 8,933,719 4,218,545 0 60,624,237 Development Impact Fee Total Revenue Projection 43,287,668 3,410,571 12,653,037 9,863,900 4,814,096 2,857,952 2,915,111 Development Impact Fee Total Available Funding 15,218,421 5,447,197 11,879,304 12,809,484 13,405,035 16,262,987 19,178,098 Facilities Replacement Fund
City Facilities Rehabilitation 2,554,482 2,439,184 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 10,493,666 Civic Center HVAC System Upgrade 0 0 0 0 0 0 3,000,000 3,000,000 CRC Pool Cantilever Restoration 0 0 0 0 0 0 400,000 400,000 Fire Station 84 Training Room Renovation 0 800,000 0 0 0 0 800,000 Mary Phillips Senior Center Enhancement And Renovation 279,694 0 0 0 0 0 0 279,694 Project Funding 2,834,176 3,239,184 1,500,000 1,000,000 1,000,000 1,000,000 4,400,000 14,973,360 Revenue Projection 8,285,947 3,239,183 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 Available Funding 5,451,771 5,451,770 5,201,770 5,451,770 5,701,770 5,951,770 2,801,770 General Fund
City Facilities Rehabilitation 1,750,000 0 0 0 0 0 0 1,750,000 Comprehensive General Plan Update 1,057,141 1,682,859 0 0 0 0 0 2,740,000 French Valley Parkway/I-15 Improvements - Phase II 4,236,174 0 0 0 0 0 0 4,236,174 505

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 285
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
French Valley Parkway/I-15 Improvements - Phase III 30,000 0 0 0 0 0 0 30,000 I-15 Congestion Relief 1,638,435 270,275 0 0 0 0 0 1,908,710 Murrieta Creek Improvements 135,858 0 0 0 0 0 0 135,858 Old Town Parking Structure 1,000,000 0 0 0 0 0 0 1,000,000 Overland Drive Extension Commerce Center 235,422 0 0 0 0 0 0 235,422 Parks Improvement Program 1,003,059 0 0 0 0 0 0 1,003,059 Pavement Rehabilitation Program - Citywide 5,692,614 0 0 0 0 0 0 5,692,614 Sidewalks - Citywide 375,000 0 0 0 0 0 0 375,000
Project Funding 17,153,704 1,953,133 0 0 0 0 0 19,106,837 Revenue Projection 17,153,704 1,953,133 0 0 0 0
Available Funding 0 0 0 0 0 0 0
Grants - Federal
American With Disabilities Act (ADA) Transition Plan Implementation 589,050 561,636 657,180 325,000 325,000 325,000 325,000 3,107,866 Diaz Road Expansion 0 0 2,000,000 0 0 0 0 2,000,000
French Valley Parkway/I-15 Improvements - Phase II 44,456,088 7,146,272 0 0 0 0 0 51,602,360 I-15/State Route 79 South Ultimate Interchange 13,719,567 696,272 0 0 0 0 0 14,415,839 Mary Phillips Senior Center Enhancement And Renovation 1,057,584 0 0 0 0 0 0 1,057,584 Murrieta Creek Bridge At Overland 1,218,308 3,236,692 0 21,065,000 0 0 0 25,520,000 Sidewalks - Old Town Improvements 849,426 0 0 0 0 0 0 849,426 Project Funding 61,890,024 11,640,871 2,657,180 21,390,000 325,000 325,000 325,000 98,553,075 Revenue Projection 61,890,024 11,640,871 2,657,180 21,390,000 325,000 325,000 325,000 Available Funding 0 0 0 0 0 0 0
Grants - State & Local
Bike Lane And Trail Program - Citywide 19,857 0 0 0 0 0 0 19,857 Bike Lane Upgrades - Citywide 0 224,550 0 0 0 0 0 224,550 Community Wildfire Protection Plan 266,598 111,402 0 0 0 0 0 378,000 Comprehensive General Plan Update 731,488 78,512 0 0 0 0 0 810,000 De Portola Road/Jedediah Smith Road Roundabout 0 800,000 0 0 0 0 0 800,000 Dog Park Renovation 447,126 0 0 0 0 0 0 447,126
Electric Vehicles Charging Station 111,574 29,426 0 0 0 0 0 141,000 French Valley Parkway/I-15 Improvements - Phase II 38,478,724 9,121,276 0 0 0 0 0 47,600,000 French Valley Parkway/I-15 Improvements - Phase III 0 5,000,000 0 0 0 0 0 5,000,000 I-15 Congestion Relief 1,250,000 0 0 0 0 0 0 1,250,000
I-15/State Route 79 South Ultimate Interchange 14,446,520 160,000 0 0 0 0 0 14,606,520 506

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
286 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Local Roadway Safety Plan Update 0 120,000 0 0 0 0 0 120,000 Pedestrian Ramp Upgrades - Citywide 225,000 0 0 0 0 0 225,000 Santa Gertrudis Creek Phase II - Margarita Under-Crossing 1,398,424 103,576 0 0 0 0 0 1,502,000 Sidewalks - Pauba Road 0 362,600 0 0 0 0 0 362,600
Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 0 492,930 0 0 0 0 0 492,930 Traffic Signal - Safety Lights and Signal Communications Upgrade- Citywide 186,510 2,254,800 0 0 0 0 0 2,441,310 Traffic Signal Fiber Optic Extension 0 552,850 0 0 0 0 0 552,850 Ynez Road Improvements - Phase I 37,880 2,437,120 0 0 0 0 0 2,475,000 Project Funding 57,374,701 22,074,042 0 0 0 0 0 79,448,743 Revenue Projection 57,374,701 22,074,042 0 0 0 0 0
Available Funding 0 0 0 0 0 0 0
Housing
French Valley Parkway/I-15 Improvements - Phase III 1,669,794 0 0 0 0 0 0 1,669,794 Habitat for Humanity Old Town Units 0 1,261,000 0 0 0 0 0 1,261,000 Las Haciendas Affordable Housing Project 8,910,698 718,445 0 0 0 0 0 9,629,143 Uptown Temecula Affordable Housing Site 0 0 570,000 1,300,000 0 0 0 1,870,000 Vine Creek Affordable Housing Project 0 2,710,000 0 0 0 0 0 2,710,000 Project Funding 10,580,492 4,689,445 570,000 1,300,000 0 0 0 17,139,937 Revenue Projection 10,580,492 4,689,445 570,000 1,300,000 0 0 0 Available Funding 0 0 0 0 0 0 0
Measure A
Bridge Maintenance 185,104 841,216 0 488,160 0 300,000 0 1,814,480 De Portola Road/Jedediah Smith Road Roundabout 0 1,160,000 0 0 0 0 0 1,160,000 Diaz Road Expansion 351,941 5,530,606 0 0 0 0 0 5,882,547 French Valley Parkway/I-15 Improvements - Phase II 1,627,914 0 0 0 0 0 0 1,627,914 Nicolas Road Multi-Use Trail Extension 0 1,100,000 0 0 0 0 0 1,100,000 Pavement Rehabilitation Program - Citywide 25,650,726 1,224,000 1,312,000 598,460 551,866 262,904 574,162 30,174,118 Sidewalks - Old Town Improvements 140,000 0 0 0 0 0 0 140,000 Project Funding 27,955,684 9,855,823 1,312,000 1,086,620 551,866 562,904 574,162 41,899,059 Revenue Projection 38,618,609 520,037 1,423,301 1,451,767 1,480,802 1,510,418 1,540,627 Available Funding 10,662,925 1,327,139 1,438,440 1,803,587 2,732,524 3,680,038 4,646,503 507

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 287
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Measure S
American With Disabilities Act (ADA) Transition Plan Implementation 92,286 393,694 78,660 78,660 78,660 78,660 78,660 879,280 Auto Mall Wayfinding Signs 67,525 667,693 0 0 0 0 0 735,218 Bike Lane and Trail Program - Great Oak Trail Lighting 0 352,808 0 0 0 0 0 352,808 Bike Lane And Trail Program - Temecula Creek South Side Trail 533,713 192,161 0 0 0 0 0 725,874 Bike Lane Upgrades - Citywide 50 49,900 0 0 0 0 0 49,950 Children's Museum Enhancement Project 400,000 0 0 0 0 0 0 400,000 City Facility Security 142,754 107,246 0 0 0 0 0 250,000 City Security Camera System 2,164,091 (297,477) 0 0 0 0 0 1,866,613 Citywide Community Fire Protection Plan 0 771,000 0 0 0 0 0 771,000 Citywide Drainage Master Plan 653,388 198,165 0 0 0 0 0 851,553 Citywide Financial System Upgrade 613,184 0 0 0 0 0 0 613,184 Community Recreation Center (CRC) Renovations 1,079,893 499,181 0 0 0 0 0 1,579,074 Community Recreation Center Splash Pad & Shade Structures 2,545,258 31,889 0 0 0 0 0 2,577,147 Diaz Road Expansion 208,734 613,642 0 0 0 0 0 822,376
Dog Park Renovation 630,874 (634) 0 0 0 0 0 630,240
Eagle Soar Splash Pad Rehabilitation 0 15,000 0 0 0 0 0 15,000 Empire Creek Improvements 18,594 452,355 0 0 0 0 0 470,949 Fiber Optic Communications Systems - Citywide 120,150 87,850 0 0 0 0 0 208,000 Fire Station 73 Gym/Garage 546,658 4,398,035 1,359,712 0 0 0 0 6,304,405 Fire Station 84 Training Room Renovation 709,861 909,210 0 0 0 0 0 1,619,071 French Valley Parkway/I-15 Improvements - Phase II 5,601,757 429,578 200,000 0 0 0 0 6,231,335 French Valley Parkway/I-15 Improvements - Phase III 343,697 548,120 0 0 0 0 0 891,817 I-15/State Route 79 South Interchange Enhanced Landscaping 509,989 620,306 0 0 0 0 0 1,130,295 La Paz Road Roundabout Reconstruction 0 3,009,000 800,000 0 0 0 0 3,809,000 Local Roadway Safety Plan Update 0 35,000 0 0 0 0 0 35,000 Long Canyon Creek Park Restrooms 289,025 1,208,905 0 0 0 0 0 1,497,930 Margarita Recreation Center 5,083,592 95,916 0 0 0 0 0 5,179,508 Mary Phillips Senior Center Enhancement And Renovation 952,411 (70,694) 0 0 0 0 0 881,717 Medians & Traffic Calming Improvements - Citywide 231,900 680,000 0 0 0 0 0 911,900 Mercedes Street Sidewalk 0 1,400,000 350,000 0 0 0 0 1,750,000 Mike Naggar Park Pickleball Court Conversion 0 200,000 0 0 0 0 0 200,000 Murrieta Creek Bridge At Overland 120,666 879,334 0 0 0 0 0 1,000,000 Murrieta Creek Improvements 1,262,139 125,319 0 0 0 0 0 1,387,458 Nicolas Road Multi-Use Trail Extension 0 150,000 0 0 0 0 0 150,000 508

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
288 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Old Town Parking Structure 0 405,000 0 0 0 0 0 405,000
Park Restrooms Renovations, Expansion And Americans With Disabilities Act (ADA) Improvements 608,281 121,519 0 0 0 0 0 729,800
Parks Improvement Program 2,440,000 0 0 0 0 0 0 2,440,000 Pavement Management Program Update 0 85,020 0 0 0 100,000 0 185,020 Pavement Rehabilitation Program - Citywide 2,000,000 0 0 0 0 0 0 2,000,000 Pedestrian Ramp Upgrades - Citywide 23,329 26,671 0 0 0 0 0 50,000 Pickleball Courts 1,794,566 (1,841) 0 0 0 0 0 1,792,725 Playground Equipment Enhancement & Safety Surfacing 3,905,773 332,151 939,725 0 0 0 0 5,177,649 Rancho California Road Median Improvements 24,333 125,667 0 0 0 0 0 150,000 Ronald Reagan Sports Park Hockey Rink 259,104 1,825,896 0 0 0 0 0 2,085,000 Ronald Reagan Sports Park Skate Park 307,899 4,471,237 0 0 0 0 0 4,779,136 Ronald Reagan Sports Park Trail 0 0 100,000 0 0 0 0 100,000 Santa Gertrudis Creek Phase II - Margarita Under-Crossing 2,535,215 (319,984) 0 0 0 0 0 2,215,231 Sidewalks - Citywide 1,282,471 115,104 0 0 0 0 0 1,397,575 Sidewalks - Old Town Improvements 1,138,877 (299,719) 0 0 0 0 0 839,159 Sidewalks - Pauba Road 198,208 696,316 0 0 0 0 0 894,524 Sixth Street Improvements 828,034 149,291 0 0 0 0 0 977,326 Sports Court Resurfacing 363,830 206,427 0 100,000 100,000 0 0 770,257 Sports Field Lighting - Light Emitting Diode (LED) Conversion 2,165,917 264,083 0 0 0 0 0 2,430,000 Storm Drain Pipe Lining 88,169 964,931 0 1,870,050 0 1,870,050 0 4,793,200 Traffic Signal - Equipment Enhancement Program - Citywide 1,018,576 1,446,424 260,000 260,000 260,000 0 0 3,245,000 Traffic Signal - Installation - Citywide 367,944 427,056 0 0 0 0 0 795,000 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 5,184 74,586 0 0 0 0 0 79,770 Traffic Signal - Safety Lights and Signal Communications Upgrade- Citywide 0 220,000 0 0 0 0 0 220,000 Traffic Signal Fiber Optic Extension 25,515 239,485 208,150 0 0 0 0 473,150 Uptown Temecula Sports Park 10,596 1,366,404 0 0 0 0 0 1,377,000 Utility Undergrounding - Citywide 244,375 (74,852) 0 0 0 0 0 169,523 Vail Ranch Park Restrooms 325,063 1,067,867 0 0 0 0 0 1,392,930 Project Funding 46,883,448 32,687,242 4,296,247 2,308,710 438,660 2,048,710 78,660 88,741,676 Revenue Projection 50,883,448 33,554,706 296,247 2,308,710 438,660 2,048,710 78,660 Available Funding 4,000,000 4,867,464 867,464 867,464 867,464 867,464 867,464 509

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 289
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Public Art Fund
Interstate 15 Corridor Branding and Visioning Improvements 0 0 100,000 0 0 0 0 100,000 Project Funding 0 0 100,000 0 0 0 0 100,000
Revenue Projection 0 305,964 12,141 12,384 12,631 12,884 13,142 Available Funding 0 305,964 218,105 230,489 243,120 256,004 269,146 Reimbursements/Other
Butterfield Stage Road Extension 932,090 0 0 0 0 0 0 932,090 Butterfield Stage Road Storm Drain Improvements 0 11,861,900 0 0 0 0 0 11,861,900 Electric Vehicles Charging Station 0 5,800 0 0 0 0 0 5,800 French Valley Parkway/I-15 Improvements - Phase II 6,023,250 1,000,000 0 0 0 0 0 7,023,250 French Valley Parkway/I-15 Improvements - Phase III 165,183 0 0 0 0 0 0 165,183 Harveston Community Park Building Renovation and Expansion 1,415,000 (1,355,000) 0 0 0 0 0 60,000 I-15 Congestion Relief 2,600,000 0 0 0 0 0 0 2,600,000
I-15/State Route 79 South Interchange Enhanced Landscaping 2,500,000 0 0 0 0 0 0 2,500,000 I-15/State Route 79 South Ultimate Interchange 1,929,774 694,068 0 0 0 0 0 2,623,842 Medians & Traffic Calming Improvements - Citywide 0 25,000 0 0 0 0 0 25,000 Murrieta Creek Improvements 969,285 0 0 0 0 0 0 969,285 Nicolas Road Extension & Improvements 0 7,754,093 0 0 0 0 0 7,754,093 Parks Improvement Program 103,315 282,000 0 0 0 0 0 385,315 Pavement Rehabilitation Program - Citywide 308,054 0 0 0 0 0 0 308,054 Rancho California Road Median Improvements 0 57,200 0 0 0 0 0 57,200 Ronald Reagan Sports Park Hockey Rink 500,000 0 0 0 0 0 0 500,000 Santa Gertrudis Creek Phase II - Margarita Under-Crossing 0 319,984 0 0 0 0 0 319,984 Traffic Signal - Installation - Citywide 246,764 3,236 0 0 0 0 0 250,000 Ynez Road Improvements - Phase I 435,750 0 0 0 0 0 0 435,750 Project Funding 18,128,465 20,648,281 0 0 0 0 0 38,776,746 Revenue Projection 18,128,465 20,648,281 0 0 0 0 0
Available Funding 0 0 0 0 0 0 0
SB1/Road Maintenance and Rehabilitation Account (RMRA)
Pavement Management Program Update 183,289 106,691 0 0 0 114,980 0 404,960 Pavement Rehabilitation Program - Citywide 13,459,653 6,800,733 2,883,697 3,743,911 3,940,332 3,929,296 3,812,417 38,570,039 Project Funding 13,642,942 6,907,424 2,883,697 3,743,911 3,940,332 4,044,276 3,812,417 38,974,999 Revenue Projection 18,643,999 3,128,263 3,307,005 3,373,145 3,440,608 3,509,420 3,579,609 Available Funding 5,001,057 1,221,896 1,645,204 1,274,438 774,714 239,858 7,050 510

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
290 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Service Level C - Zone 28
Bike Lane and Trail Program - Great Oak Trail Lighting 499,308 692 0 0 0 0 0 500,000 Project Funding 499,308 692 0 0 0 0 0 500,000
Revenue Projection 499,308 692 0 0 0 0 0
Available Funding 0 0 0 0 0 0 0
Street Maintenance Fund
Overland Drive Widening 0 4,864,784 0 0 0 0 0 4,864,784 Pavement Rehabilitation Program - Citywide 3,600,000 0 0 0 0 0 0 3,600,000 Ynez Road Improvements - Phase I 0 0 224,356 0 0 0 0 224,356 Project Funding 3,600,000 4,864,784 224,356 0 0 0 0 8,689,140 Revenue Projection 12,098,006 1,227,222 1,227,222 0 0 0 0 Available Funding 8,498,006 4,860,444 5,863,310 5,863,310 5,863,310 5,863,310 5,863,310 TEAM Fund
Electric Vehicles Charging Station 188,277 110,652 0 0 0 0 0 298,929 Murrieta Creek Improvements 100,000 100,000 0 0 0 0 0 200,000 Sports Field Lighting - Light Emitting Diode (LED) Conversion 300,000 0 0 0 0 0 0 300,000 Project Funding 588,276 210,653 0 0 0 0 0 798,929
Revenue Projection 910,625 22,054 0 0 0 0 0
Available Funding 322,349 133,750 133,750 133,750 133,750 133,750 133,750 Technology Replacement Fund
Citywide Financial System Upgrade 219,752 543,782 50,000 0 0 0 0 813,534 Project Funding 219,752 543,782 50,000 0 0 0 0 813,534
Revenue Projection 5,085,066 543,782 0 0 0 0 0
Available Funding 4,865,314 4,865,314 4,815,314 4,815,314 4,815,314 4,815,314 4,815,314 Transportation Uniform Mitigation Fee (TUMF)
Butterfield Stage Road Extension 1,438,000 0 0 0 0 0 0 1,438,000 Diaz Road Expansion 1,065,923 5,665,077 0 0 0 0 0 6,731,000 French Valley Parkway/I-15 Improvements - Phase II 19,489,986 1,059,127 0 0 0 0 0 20,549,113 French Valley Parkway/I-15 Improvements - Phase III 1,324,898 1,675,102 0 0 0 0 0 3,000,000 I-15 Congestion Relief 2,071,971 1,428,029 0 0 0 0 0 3,500,000 I-15/State Route 79 South Ultimate Interchange 15,371,504 3,571,981 0 0 0 0 0 18,943,485 Project Funding 40,762,282 13,399,316 0 0 0 0 0 54,161,598 Revenue Projection 40,762,282 13,399,316 0 0 0 0 0
Available Funding 0 0 0 0 0 0 0
511

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 291
CAPITAL PROJECTS SUMMARY – BY FUNDING SOURCE
Funding Source - Project Name
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Uptown Temecula New Streets In Lieu Fee
Las Haciendas Affordable Housing Project 0 500,857 0 0 0 0 0 500,857 Project Funding 0 500,857 0 0 0 0 0 500,857
Revenue Projection 1,648,347 48,440 48,440 49,409 50,397 51,405 52,433 Available Funding 1,648,347 1,195,930 1,244,370 1,293,779 1,344,176 1,395,581 1,448,014 Grand Total Project Funding 377,188,107 168,255,832 19,984,411 39,937,960 10,659,403 8,165,890 9,375,239 633,566,842 Grand Total Revenue Projection 450,105,789 126,739,387 23,601,401 41,159,279 11,975,358 11,732,217 9,924,337 Grand Total Available Funding 72,917,682 31,401,237 35,018,227 36,239,546 37,555,501 41,121,828 41,670,927 Unspecified
Bike Lane And Trail Program - Citywide 0 0 0 0 0 0 959,558 959,558 Bike Lane And Trail Program - Temecula Creek South Side Trail 0 0 0 0 8,593,350 0 0 8,593,350 Citywide Drainage Master Plan 0 0 0 0 0 0 60,000 60,000 Diaz Road Expansion 0 0 0 0 0 0 3,614,478 3,614,478
Empire Creek Improvements 0 0 0 0 0 4,191,230 0 4,191,230 French Valley Parkway/I-15 Improvements - Phase III 0 0 0 0 3,750,000 62,189,400 450,000 66,389,400 I-15 / French Valley Parkway Improvements-Phase IV 0 0 0 0 0 0 181,400,000 181,400,000 Interstate 15 Corridor Branding and Visioning Improvements 0 0 0 0 100,000 200,000 200,000 500,000 Rancho California Road Median Improvements 0 0 0 0 0 7,500,000 0 7,500,000 Uptown Temecula Sports Park 0 0 0 0 9,547,822 0 0 9,547,822 Project Funding 0 0 0 0 21,991,172 74,080,630 186,684,036 282,755,838 Revenue Projection 0 0 0 0 0 0 0
Available Funding 0 0 0 0 (21,991,172)(96,071,802)(282,755,838) Grand Total Project Funding 377,188,107 168,255,832 19,984,411 39,937,960 32,650,575 82,246,520 196,059,275 916,322,680 Grand Total Revenue Projection 450,105,789 126,739,387 23,601,401 41,159,279 11,975,358 11,732,217 9,924,337 Grand Total Available Funding 72,917,682 31,401,237 35,018,227 36,239,546 15,564,329 (54,949,974)(241,084,911) 512

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
292 | Annual Operating Budget
CIP –Capital Projects Summary – by Project
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost

CIRCULATION PROJECTS
Butterfield Stage Road Storm
Drain Improvements County AD 159 4,008,270 4,008,270
Developer Contribution 4,853,630 4,853,630
Reimbursements 3,000,000 3,000,000
Total 11,861,900 11,861,900
De Portola Road/Jedediah Smith
Road Roundabout DIF-Street Improvements 538,987 1,970,013 2,509,000 Grants 800,000 800,000
Measure A 1,160,000 1,160,000
Total 538,987 3,930,013 4,469,000
Diaz Road Expansion DIF-Street Improvements 590 590
Grants 2,000,000 2,000,000
Measure A 351,941 5,530,606 5,882,547
Measure S 208,734 613,642 822,376
TUMF (WRCOG)1,065,923 5,665,077 6,731,000
Unspecified 3,614,478 3,614,478
Total 1,627,188 11,809,325 2,000,000 3,614,478 19,050,991 French Valley Parkway/I-15
Improvements - Phase II CFD 01-02 (Harveston)1,005,840 1,005,840 Developer Contribution 1,000,000 1,000,000
DIF-Street Improvements 75,360 75,360
General Fund 4,236,174 4,236,174
INFRA Grant 43,016,249 6,983,751 50,000,000
Measure A 1,627,914 1,627,914
Measure S 5,601,757 429,578 200,000 6,231,335
Reimbursements 6,023,250 6,023,250
SAFETEA-LU 1,439,840 162,521 1,602,360
STIP-Surface Transportation
Improvement Program 38,478,724 9,121,276 47,600,000
TUMF (CETAP/RCTC)(200,721)999,668 798,947
TUMF (RCTC)3,690,124 (673,562)3,016,562
TUMF (WRCOG)16,000,583 733,021 16,733,604
Total 120,995,093 18,756,253 200,000 139,951,346
513

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 293
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
French Valley Parkway/I-15
Improvements - Phase III Affordable Housing 1,669,794 1,669,794 General Fund 30,000 30,000
Measure S 343,697 548,120 891,817
Reimbursements 165,183 165,183
STIP-Surface Transportation
Improvement Program 5,000,000 5,000,000
TUMF (WRCOG)1,324,898 1,675,102 3,000,000
Unspecified 3,750,000 62,189,400 450,000 66,389,400
Total 3,533,572 7,223,222 3,750,000 62,189,400 450,000 77,146,194 I-15 / French Valley Parkway
Improvements-Phase IV Unspecified 181,400,000 181,400,000 I-15 Congestion Relief General Fund 1,638,435 270,275 1,908,710 Reimbursement-Pechanga IGA 2,500,000 2,500,000
Reimbursements 100,000 100,000
SHOPP 1,250,000 1,250,000
TUMF (CETAP/RCTC)2,071,971 1,428,029 3,500,000
Total 7,560,406 1,698,304 9,258,710
I-15/State Route 79 South
Ultimate Interchange CFD 03-01 (Crowne Hill)502,211 502,211 Reimbursements 739,192 694,068 1,433,260
Reimbursements/Other 1,190,582 1,190,582
SAFETEA-LU 1,439,839 1,439,839
Senate Bill 621 14,446,520 160,000 14,606,520
STP (RCTC)12,279,728 696,272 12,976,000
TUMF (CETAP/RCTC)5,352,215 47,785 5,400,000
TUMF (RCTC)4,452,000 4,452,000
TUMF (WRCOG)5,567,289 3,524,196 9,091,485
Total 45,969,577 5,122,321 51,091,897
La Paz Road Roundabout
Reconstruction Measure S 3,009,000 800,000 3,809,000
Medians & Parkways - Citywide DIF-Street Improvements 666,838 100,000 766,838 Mercedes Street Sidewalk Measure S 1,400,000 350,000 1,750,000 514

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
294 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Murrieta Creek Bridge At
Overland DIF-Street Improvements 1,181,533 1,096,387 150,000 8,761,283 918,545 12,107,748 HBP-Highway Bridge Program 1,218,308 3,236,692 21,065,000 25,520,000 Measure S 120,666 879,334 1,000,000
Total 2,520,507 5,212,413 150,000 29,826,283 918,545 38,627,748 Overland Drive Extension
Commerce Center DIF-Street Improvements 8,082,475 8,082,475 General Fund 235,422 235,422
Total 8,317,897 8,317,897
Overland Drive Widening DIF-Street Improvements 671,306 1,321,714 2,482,597 172,436 4,648,053 Street Maintenance Fund 4,864,784 4,864,784
Total 671,306 6,186,498 2,482,597 172,436 9,512,837
Pavement Rehabilitation Program
- Citywide Gas Tax 1,200,000 1,200,000
General Fund 5,692,614 5,692,614
Measure A 25,650,726 1,224,000 1,312,000 598,460 551,866 262,904 574,162 30,174,118 Measure S 2,000,000 2,000,000
Reimbursements 308,054 308,054
RMRA 12,259,653 6,800,734 2,883,697 3,743,911 3,940,332 3,929,296 3,812,417 37,370,040 Street Maintenance Fund 3,600,000 3,600,000
Total 50,711,047 8,024,734 4,195,697 4,342,371 4,492,198 4,192,200 4,386,579 80,344,826 Rancho California Road Median
Improvements Developer Contribution 57,200 57,200
DIF-Street Improvements 115,254 635,546 750,800
Measure S 24,333 125,667 150,000
Unspecified 7,500,000 7,500,000
Total 139,587 818,413 7,500,000 8,458,000
Traffic Signal - Equipment
Enhancement Program - Citywide DIF-Traffic Signals 541,788 541,788 Measure S 1,018,576 1,446,424 260,000 260,000 260,000 3,245,000 Total 1,560,364 1,446,424 260,000 260,000 260,000 3,786,788 Traffic Signal - Installation -
Citywide Developer Contribution 246,764 3,236 250,000
DIF-Traffic Signals 1,299,810 262,873 375,000 300,000 2,237,683 Measure S 367,944 427,056 795,000
515

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 295
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Total 1,914,518 693,165 375,000 300,000 3,282,683
Ynez Road Improvements - Phase
I Developer Contribution 435,750 435,750
DIF-Street Improvements 4,879 1,603,158 1,507,444 3,115,481 Grants 37,880 2,437,120 2,475,000
Street Maintenance Fund 224,356 224,356
Total 478,509 4,040,278 1,731,800 6,250,587
TOTAL CIRCULATION PROJECTS 247,205,396 91,232,262 12,645,094 34,601,090 9,720,743 73,881,600 189,851,057 659,137,243

HOUSING PROJECTS
Habitat for Humanity Old Town
Units Affordable Housing 700,000 700,000
Contribution of Land 561,000 561,000
Total 1,261,000 1,261,000
Las Haciendas Affordable Housing
Project Affordable Housing 8,910,698 718,445 9,629,143
Uptown Temecula New Streets In Lieu
Fee 500,857 500,857
Total 8,910,698 1,219,302 10,130,000
Uptown Temecula Affordable
Housing Site Community Reinvestment Program 1,000,000 1,000,000 Contribution of Land 570,000 1,300,000 1,870,000
Total 1,000,000 570,000 1,300,000 2,870,000
Vine Creek Affordable Housing
Project Affordable Housing 2,710,000 2,710,000
Community Reinvestment Program 4,000,000 4,000,000
Total 6,710,000 6,710,000
TOTAL HOUSING PROJECTS 8,910,698 10,190,302 570,000 1,300,000 20,971,000

INFRASTRUCTURE PROJECTS
American With Disabilities Act
(ADA) Transition Plan
Implementation CDBG 589,050 561,636 657,180 325,000 325,000 325,000 325,000 3,107,866 Measure S 92,286 393,694 78,660 78,660 78,660 78,660 78,660 879,280 Total 681,336 955,330 735,840 403,660 403,660 403,660 403,660 3,987,146 Auto Mall Wayfinding Signs Measure S 67,525 667,693 735,218 516

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
296 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Bike Lane And Trail Program -
Citywide Assembly Bill 2766 326,878 187,835 170,000 175,000 185,000 185,000 185,000 1,414,713 Beyond Grant 19,857 19,857
DIF-Open Space & Trails 72,177 72,177
Unspecified 959,558 959,558
Total 418,912 187,835 170,000 175,000 185,000 185,000 1,144,558 2,466,305 Bike Lane and Trail Program -
Great Oak Trail Lighting DIF-Open Space & Trails 232,000 232,000 Measure S 352,808 352,808
Service Level C - Zone 28 499,308 692 500,000
Total 499,308 353,500 232,000 1,084,808
Bike Lane And Trail Program -
Temecula Creek South Side Trail Assembly Bill 2766 67,845 67,845 Measure S 533,713 192,161 725,874
Unspecified 8,593,350 8,593,350
Total 601,558 192,161 8,593,350 9,387,069
Bike Lane Upgrades - Citywide
HSIP-Highway Safety Improvement
Program 224,550 224,550
Measure S 50 49,900 49,950
Total 50 274,450 274,500
Bridge Maintenance Measure A 185,104 841,216 488,160 300,000 1,814,480 City Facilities Rehabilitation DIF-Corporate Facilities 280,000 280,000 Facilities Replacement Fund 2,554,482 2,439,184 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 10,493,666 General Fund 1,750,000 1,750,000
Total 4,584,482 2,439,184 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 12,523,666 City Facility Security DIF-Corporate Facilities 25,000 25,000 Measure S 142,754 107,246 250,000
Total 142,754 132,246 275,000
City Security Camera System DIF-Corporate Facilities 752,087 752,087 DIF-Police Facilities 1,121,113 1,121,113
Measure S 2,164,091 (297,477)1,866,613
Total 4,037,291 (297,477)3,739,813
Citywide Community Fire
Protection Plan Community Reinvestment Program 179,000 179,000 517

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 297
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Measure S 771,000 771,000
Total 950,000 950,000
Citywide Drainage Master Plan Measure S 653,388 198,165 851,553 Unspecified 60,000 60,000
Total 653,388 198,165 60,000 911,553
Citywide Financial System
Upgrade Measure S 613,184 613,184
Technology Replacement Fund 219,752 543,782 50,000 813,534 Total 832,936 543,782 50,000 1,426,718
Civic Center HVAC System
Upgrade Facilities Replacement Fund 3,000,000 3,000,000 Community Recreation Center
(CRC) Renovations DIF-Park & Rec Improvements 1,521,208 1,521,208 DIF-Quimby 3,050,592 (15,000)3,035,592
Measure S 1,079,893 499,181 1,579,074
Total 5,651,693 484,181 6,135,874
Community Wildfire Protection
Plan Grants 266,598 111,402 378,000
Comprehensive General Plan
Update General Fund 1,057,141 1,682,859 2,740,000
Grants 731,488 78,512 810,000
Total 1,788,629 1,761,371 3,550,000
Electric Vehicles Charging Station Assembly Bill 2766 47,000 47,000 MSRC-Mobile Source Air Review
Committee Grant 111,574 29,426 141,000
Reimbursements 5,800 5,800
TEAM 188,277 110,652 298,929
Total 346,851 145,878 492,729
Fiber Optic Communications
Systems - Citywide DIF-Police Facilities 12,015 (12,015) Measure S 120,150 87,850 208,000
Total 132,165 75,835 208,000
Fire Station 73 Gym/Garage DIF-Corporate Facilities 43,651 50,000 93,651 DIF-Fire Protection Facilities 127,336 194,890 322,226
Measure S 546,658 4,398,035 1,359,712 6,304,405
518

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
298 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Total 717,645 4,448,035 1,554,602 6,720,282
Fire Station 84 Training Room
Renovation DIF-Corporate Facilities 662,131 662,131
DIF-Fire Protection Facilities 448,248 448,248
Facilities Replacement Fund 800,000 800,000
Measure S 709,861 909,210 1,619,071
Total 709,861 2,819,589 3,529,450
I-15/State Route 79 South
Interchange Enhanced
Landscaping Measure S 509,989 620,306 1,130,295
Reimbursement-Pechanga IGA 2,500,000 2,500,000
Total 3,009,989 620,306 3,630,295
Interstate 15 Corridor Branding
and Visioning Improvements Public Art Fund 100,000 100,000 Unspecified 100,000 200,000 200,000 500,000
Total 100,000 100,000 200,000 200,000 600,000
Library Alternate Emergency
Operations Center Enhancements DIF-Library Facilities 250,938 449,062 700,000 Library Technology Enhancements DIF-Library Facilities 71,937 168,063 240,000 Local Roadway Safety Plan
Update Grants 120,000 120,000
Measure S 35,000 35,000
Total 155,000 155,000
Long Canyon Creek Park to Ynez
Trail DIF-Open Space & Trails 30,000 30,000
Margarita Recreation Center Capital Financing 6,405,000 6,405,000 DIF-Park & Rec Improvements 600,000 600,000
DIF-Police Facilities 111,256 25,744 137,000
Measure S 5,083,592 95,916 5,179,508
Total 12,199,848 121,660 12,321,508
Mary Phillips Senior Center
Enhancement And Renovation CDBG 1,057,584 1,057,584
Facilities Replacement Fund 279,694 279,694
Measure S 952,411 (70,694)881,717
Total 2,289,689 (70,694)2,218,995
519

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 299
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Medians & Traffic Calming
Improvements - Citywide DIF-Street Improvements 40,000 40,000 Measure S 231,900 680,000 911,900
Reimbursements 25,000 25,000
Total 271,900 705,000 976,900
Murrieta Creek Improvements DIF-Corporate Facilities 130,000 15,000 145,000 General Fund 135,858 135,858
Measure S 1,262,139 125,319 1,387,458
Reimbursements 969,285 969,285
TEAM 100,000 100,000 200,000
Total 2,597,282 240,319 2,837,601
Nicolas Road Multi-Use Trail
Extension Assembly Bill 2766 450,000 450,000
DIF-Open Space & Trails 300,000 300,000
Measure A 1,100,000 1,100,000
Measure S 150,000 150,000
Total 300,000 1,700,000 2,000,000
Old Town Parking Structure General Fund 1,000,000 1,000,000 Measure S 405,000 405,000
Total 1,000,000 405,000 1,405,000
Old Town Temecula Parklets
Program Community Reinvestment Program 122,309 327,691 450,000 Pavement Management Program
Update Measure S 85,020 100,000 185,020
RMRA 183,289 106,691 114,980 404,960
Total 183,289 191,711 214,980 589,980
Pedestrian Ramp Upgrades -
Citywide
HSIP-Highway Safety Improvement
Program 225,000 225,000
Measure S 23,329 26,671 50,000
Total 23,329 251,671 275,000
Santa Gertrudis Creek Phase II -
Margarita Under-Crossing DIF-Open Space & Trails 1,247,749 315,159 1,562,908 Measure S 2,535,215 (319,984)2,215,231
Reimbursements 319,984 319,984
520

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
300 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Senate Bill 1 1,398,424 103,576 1,502,000
Total 5,181,387 418,736 5,600,123
Sidewalks - Citywide General Fund 375,000 375,000
Measure S 1,282,471 115,104 1,397,575
Total 1,657,471 115,104 1,772,575
Sidewalks - Old Town
Improvements CDBG 849,426 849,426
Measure A 140,000 140,000
Measure S 1,138,877 (299,719)839,159
Total 2,128,303 (299,719)1,828,585
Sidewalks - Pauba Road Measure S 198,208 696,316 894,524 Senate Bill 821 362,600 362,600
Total 198,208 1,058,916 1,257,124
Sixth Street Improvements Community Reinvestment Program 115,000 115,000 Measure S 828,034 149,291 977,326
Total 943,034 149,291 1,092,326
South Side Senior Center DIF-Park & Rec Improvements 100,000 100,000 Storm Drain Pipe Lining Measure S 88,169 964,931 1,870,050 1,870,050 4,793,200 Traffic Signal - Pedestrian Signal
Equipment Upgrade Phase 2 -
Citywide
HSIP-Highway Safety Improvement
Program 492,930 492,930
Measure S 5,184 74,586 79,770
Total 5,184 567,516 572,700
Traffic Signal - Safety Lights and
Signal Communications Upgrade-
Citywide DIF-Traffic Signals 120,893 473,697 594,590
HSIP-Highway Safety Improvement
Program 186,510 2,254,800 2,441,310
Measure S 220,000 220,000
Total 307,403 2,948,497 3,255,900
Traffic Signal Fiber Optic
Extension DIF-Police Facilities 649,000 649,000
HSIP-Highway Safety Improvement
Program 552,850 552,850
Measure S 25,515 239,485 208,150 473,150
521

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 301
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Total 25,515 792,335 857,150 1,675,000
Utility Undergrounding - Citywide Measure S 244,375 (74,852)169,523 TOTAL INFRASTRUCTURE PROJECTS 55,417,646 29,289,918 5,229,592 3,936,870 10,282,010 4,173,690 5,808,218 114,137,945

PARKS/RECREATION PROJECTS
Children's Museum Enhancement
Project DIF-Park & Rec Improvements 145,090 145,090
Measure S 400,000 400,000
Total 545,090 545,090
Community Recreation Center
Splash Pad & Shade Structures Measure S 2,545,258 31,889 2,577,147 CRC Pool Cantilever Restoration Facilities Replacement Fund 400,000 400,000 Dog Park Renovation DIF-Corporate Facilities 100,000 100,000 Grants 447,126 447,126
Measure S 630,874 (634)630,240
Total 1,178,000 (634)1,177,366
Eagle Soar Splash Pad
Rehabilitation Community Reinvestment Program 300,000 300,000 Measure S 15,000 15,000
Total 315,000 315,000
Empire Creek Improvements Measure S 18,594 452,355 470,949 Unspecified 4,191,230 4,191,230
Total 18,594 452,355 4,191,230 4,662,179
Harveston Community Park
Building Renovation and
Expansion Developer Contribution 1,415,000 (1,355,000)60,000 DIF-Quimby 186,910 (14,780)172,130
Total 1,601,910 (1,369,780)232,130
Infill Recreational Amenities DIF-Quimby 353,986 46,014 400,000 Long Canyon Creek Park
Restrooms Measure S 289,025 1,208,905 1,497,930
Mike Naggar Park Pickleball Court
Conversion Measure S 200,000 200,000
Park Restrooms Renovations,
Expansion And Americans With Measure S 608,281 121,519 729,800 522

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
302 | Annual Operating Budget
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Disabilities Act (ADA)
Improvements
Parks Improvement Program DIF-Quimby 250,000 250,000
General Fund 1,003,059 1,003,059
Measure S 2,440,000 2,440,000
Reimbursements 103,315 282,000 385,315
Total 3,796,374 282,000 4,078,374
Pickleball Courts DIF-Park & Rec Improvements 1,450,000 1,450,000 DIF-Quimby 261,000 261,000
Measure S 1,794,566 (1,841)1,792,725
Total 3,505,566 (1,841)3,503,725
Playground Equipment
Enhancement & Safety Surfacing DIF-Park & Rec Improvements 1,040,000 1,040,000 DIF-Quimby 440,000 500,000 500,000 1,440,000
Measure S 3,905,773 332,151 939,725 5,177,649
Total 5,385,773 832,151 1,439,725 7,657,649
Ronald Reagan Sports Park
Hockey Rink Developer Contribution 500,000 500,000
DIF-Park & Rec Improvements 680,815 334,159 1,014,974
DIF-Quimby 520,432 520,432
Measure S 259,104 1,825,896 2,085,000
Total 1,439,919 2,680,487 4,120,406
Ronald Reagan Sports Park Skate
Park DIF-Park & Rec Improvements 314,624 314,624
DIF-Quimby 1,016,240 1,016,240
Measure S 307,899 4,471,237 4,779,136
Total 307,899 5,802,101 6,110,000
Ronald Reagan Sports Park Trail Measure S 100,000 100,000 Santiago Site - Community
Garden Community Reinvestment Program 360,000 360,000
Sports Court Resurfacing Measure S 363,830 206,427 100,000 100,000 770,257 Sports Field Lighting - Light
Emitting Diode (LED) Conversion Measure S 2,165,917 264,083 2,430,000 TEAM 300,000 300,000
523

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 303
CAPITAL PROJECTS SUMMARY – BY PROJECT
Capital Project Name Funding Source
Prior Years
Actuals
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total
Project
Cost
Total 2,465,917 264,083 2,730,000
Uptown Temecula Sports Park DIF-Park & Rec Improvements 2,000,000 2,000,000 DIF-Quimby 129,673 870,327 1,000,000 2,000,000
Measure S 10,596 1,366,404 1,377,000
Unspecified 9,547,822 9,547,822
Total 140,269 2,236,731 12,547,822 14,924,822
Vail Ranch Park Restrooms Measure S 325,063 1,067,867 1,392,930 TOTAL PARKS/RECREATION PROJECTS 24,870,754 14,735,274 1,539,725 100,000 12,647,822 4,191,230 400,000 58,484,805

PROJECTS FUNDED BY COMMUNITY FACILITIES DISTRICT BONDS PROJECTS Butterfield Stage Road Extension CFD 03-02 (Roripaugh Ranch)38,401,739 635,200 39,036,939 Reimbursements 932,090 932,090
TUMF 1,438,000 1,438,000
Total 40,771,829 635,200 41,407,029
Nicolas Road Extension &
Improvements CFD 03-02 (Roripaugh Ranch)11,784 7,695,933 7,707,717 CFD 16-01 (Roripaugh Ranch-Phase II)6,722,850 6,722,850 Developer Contribution 7,754,093 7,754,093
Total 11,784 22,172,876 22,184,660

TOTAL PROJECTS FUNDED BY COMMUNITY FACILITIES DISTRICT BONDS PROJECTS 40,783,613 22,808,076 63,591,689
TOTAL CAPITAL IMPROVEMENT PROGRAM 377,188,107 168,255,833 19,984,411 39,937,960 32,650,575 82,246,520 196,059,275 916,322,680 524

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
304 | Annual Operating Budget
CIP – Summary of Operating & Maintenance Costs

SUMMARY OF OPERATING & MAINTENANCE IMPACTS
Capital Project Operating Budget Account Description
2026-27
Proposed*
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
PW17-01/711 - CITY SECURITY CAMERA SYSTEM 5250 - OTHER OUTSIDE SERVICES Maintenance and Operations
of Security Camera System 300,000 300,000 300,000 300,000 300,000 FN19-01/724 - CITYWIDE FINANCIAL SYSTEM UPGRADE
5211 - SOFTWARE &
MAINTENANCE Annual Software Maintenance 86,000 86,000 86,000 86,000 86,000 PW21-09/683 - ELECTRIC VEHICLES CHARGING STATION
5215 - REPAIR & MAINTENANCE -
EQUIPMENT Electric Charging Vehicles Fees (33,100) (33,100) (33,100) (33,100) (33,100) PW17-19/690 - I-15/STATE ROUTE 79 SOUTH INTERCHANGE
ENHANCED LANDSCAPING 5415 - LANDSCAPE MAINTENANCE Required by Caltrans 62,046 63,289 65,188 67,144 69,159 PW17-21/692 - MARGARITA RECREATION CENTER 5100 - SALARIES & WAGES Staffing for MRC (4 positions) 548,551 570,493 591,600 614,370 636,190 5119 - PART-TIME (PROJECT)
Project Staffing for MRC
(45 positions - 13.07 FTEs)735,361 764,775 795,366 825,978 860,268 5240 - UTILITIES Additional Utility Costs 72,828 74,285 77,034 79,999 82,840 5250 - OTHER OUTSIDE SERVICES Janitorial/Security 131,888 134,526 139,504 144,873 150,018 1,488,628 1,544,079 1,603,504 1,665,220 1,729,315 PWPE07-03/PW23-18 - LONG CANYON CREEK PARK RESTROOMS 5250 - OTHER OUTSIDE SERVICES Janitorial Services 30,475 31,085 31,706 32,340 32,987 PWPE-07/155 - PARK RESTROOMS RENOVATIONS, EXPANSION
AND ADA IMPROVEMENTS 5250 - OTHER OUTSIDE SERVICES Janitorial Services 28,154 28,717 29,292 29,878 30,476 PWPE07-02 - VAIL RANCH PARK RESTROOMS 5250 - OTHER OUTSIDE SERVICES Janitorial Services 30,475 31,085 31,706 32,340 32,987 1,992,678 2,051,155 2,114,296 2,179,822 2,247,824 Operating cost impacts are estimated by the Project Manager. * 2026-27 Adopted O&M Impacts are included in the Adopted Operating Budget The Projected Operating impacts have been reflected in the City's General Fund and TCSD 5-Year Financial Forecasts.

Total Incremental Operating & Maintenance Impacts
525

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 305
CIP – Future Years Project

FUTURE YEARS PROJECTS
The following projects have been identified through the City's Quality of Life Master Plan (QLMP) update and reflects the citizens' 20-Year Priorities Timeline. Additional capital projects identified by City staff are also reflected. Cost estimates will be reflected when the projects are included in the 5-Year Capital Improvement Program Budget.

Project Title Department

CIRCULATION
Butterfield Stage Road Separated Bike Lanes Public Works Cherry Street Extension and Murrieta Creek Low-Flow Crossing Public Works La Paz Street Widening from Ynez Road to Temecula Parkway Public Works Margarita Road Street Improvements Public Works
Pauba Road Improvements - east of Margarita Road on the north side Public Works Temecula Creek Bridge at Avenida de Missiones Public Works Rancho Way Bridge at I-15 Public Works
Murrieta Creek Bridge at Cherry Street (connecting at French Valley Parkway)* Public Works Ynez Road Improvements - Phase II Public Works
Western Bypass Corridor* Public/Private Development

INFRASTRUCTURE / OTHER
Acquisition of Fire Station 12 in Old Town* City Manager's Office Complete Temecula Loop Trail* Community Development
Climate Action Plan* Community Development
History Museum Renovation Community Development
Integrated Watershed Management Plan* Community Development Bike Lane and Trail Program - RRSP Trails Public Works
I-15 Gateway Monument*Public Works
Fire Training Facility with Tower*Public/Private Development Wildlife Crossing over I-15*Public/Private Development
Emergency Operations Center Public Works
PARKS and RECREATION
Vail Ranch Park Site D Community Services
Mobile Library Resource Vans*Public/Private Development Tennis Complex*Public/Private Development
Performing Arts Center*Public/Private Development
Aquatics Facility with Olympic-size Swimming Pool*Public/Private Development * Items identified in the Quality of Life Master Plan - 2040 526

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
306 | Annual Operating Budget 527

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 307
Budget and Fiscal Policies
Budget and Fiscal Policies Compliance Matrix

BUDGET AND FISCAL POLICIES COMPLIANCE MATRIX
The City of Temecula's Budget and Fiscal Policies provide a framework for ensuring proper fiscal stewardship in managing public funds, allocating resources and controlling expenditures. The Policies are reviewed annually by the City Council prior to the Adoption of the Budget to either confirm or update fiscal metrics and budget priorities outlined in the Policies. The matrix below summarizes the City's compliance with the Budget and Fiscal Policies.

Budget and Fiscal Policy Target Metric Compliance Comment I. Financial Strategic Plan Purpose and
Organization N/A Yes
General outline of Budget components and
process
II. Financial Reporting N/A Yes
ACFR, Quarterly Budget Reports, Budget
Amendments, State/Federal Reporting
requirements
III. Fund Balance and Reserves
B. Reserve for Economic Uncertainty
20% of Operating
Expenditures Yes
$22,498,831 Reserve for Economic Uncertainty
(FY26-27)
C. Secondary Reserve for Contingencies 5% of Operating Expenditures Yes $5,624,708 Secondary Reserve (FY26-27) IV. Transactions and Use Tax (Measure S)
B. Appropriation Priorities

1.a. Sheriff Department Staffing Levels
1 sworn officer per 1,000
residents Yes 1.03 sworn officers per 1,000 residents

1. b. Fire Department Staffing Levels 4 personnel per engine/truck Yes 4 personnel per engine/truck V. Contingency Planning N/A N/A Only applicable when ongoing fiscal constraints are present
VI. Staffing N/A Yes Outlines hiring process, types of
employees/contractors, and leave payouts
VII. Asset Management and Replacement N/A Yes
Annual contributions to ensure adequate funding
for the replacement of the City's vehicles,
equipment, technology, and facilities
VIII. Capital Financing and Debt Management N/A Yes Defines parameters for Capital Financing, Debt Management, Disclosure Counsel, Land-Based
Financings
IX. Creation of Services Community Facilities
Districts N/A Yes
Defines circumstances and parameters for
calculating the annual contribution to fund City
services impacted by development.

X. Interfund Transfers and Loans N/A Yes
The City currently does not have any interfund
loans and all interfund transfers are noted in the
Financial Summaries section of the Budget
XI. Appropriations Limitation $390,425,308 Yes FY2025-26 appropriations subject to this limit is $107,737,717, which is $282,687,591 below the
limit
XII. Cost Allocation Plan and User Fee Study
Updates N/A Yes Establishes the desired timeline to update the City’s Cost Allocation Plan and User Fee Studies
528

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
308 | Annual Operating Budget

BUDGET AND FISCAL POLICIES COMPLIANCE MATRIX
The City of Temecula's Budget and Fiscal Policies provide a framework for ensuring proper fiscal stewardship in managing public funds, allocating resources and controlling expenditures. The Policies are reviewed annually by the City Council prior to the Adoption of the Budget to either confirm or update fiscal metrics and budget priorities outlined in the Policies. The matrix below summarizes the City's compliance with the Budget and Fiscal Policies.

Budget and Fiscal Policy Target Metric Compliance Comment XIII. Pension Funding $10 million No Funding target, funding mechanism and allowable uses of the IRC Section 115
Irrevocable Pension Trust
XIV. Retiree Health Benefit Funding 100% Funded Status Yes Establishes the funding mechanism to achieve a
100% funded status in the City’s Internal
Revenue Code (IRC) Section 115 Irrevocable
OPEB Trust
XV. Signature Delegation
City Manager $100,000 Yes
For expenditure authorization and Settlement
Authority
Assistant City Manager $100,000 Yes For contract and agreement approvals Director of Community Services $60,000 Yes
For Entertainment, Performance and Event
Agreements
Deputy City Manager $60,000 Yes
For Maintenance and Minor Construction
Agreements
Director of Human Resources/Risk
Management $10,000 Yes
For all Personal Injury, Property and Employment
Claim settlements
XVI. Emergency Appropriation N/A N/A Only applicable when an emergency declaration has occurred
529

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 309

BUDGET AND FISCAL POLICIES
I. Financial Strategic Plan Purpose and Organization
A. Annual Operating Budget (AOB)
Through its Annual Operation Budget, the City will link resources with results by:

1. Identifying community needs for essential services that improve quality of life through strategic planning that:
a. Organize the programs required to provide these essential services; b. Establish program policies and goals, which define the nature and level of program services required;
c. Identify activities performed in delivering program services.

2. Proposing goals for improving the delivery of program services that:
a. Identify and appropriate the resources required to perform program activities and accomplish program goals.
b. Set objectives to measure Performance (progress) pertaining to:
x Long term goals that align Council priorities with financial resources; x Output of program activities;
x Accomplishment of program objectives;
x Expenditure of program appropriations.

3. The AOB process encompasses the development, implementation, and evaluation of a plan for the provision of services for the upcoming fiscal year. The process includes political, managerial, planning, communication, and financial dimensions. The budget incorporates a long-term perspective, establishes linkages to broad organizational goals, and focuses budget decisions on desired results and outcomes. The AOB is formalized via the following process:
a. A budget workshop is held with the City Council to receive Council direction and public comment, prior to budget preparation;
b. Budget team updates policies and procedures for budget preparation, creates the budget process calendar, and prepares the current budget schedules for each department to use in preparing the new budget;
c. A budget kickoff workshop is held with the City Manager, Department Directors, and Department Analysts to discuss the status of the current fiscal year budget, discuss the Five-Year Financial Forecast, review the upcoming budget process calendar, discuss the impacts of the current economic conditions at the State and Federal levels, and discuss the essential principles and elements of the budget process; d. Individual meetings are held with the budget team and each department to assist in the budget development process;
530

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
310 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
e. The City Manager, in collaboration with the budget team, holds reviews each department budget request and makes recommendations to include in the proposed budget;
f. A budget workshop is held with the City Council to receive public comment and to review the components of the proposed budget, prior to formal consideration for adoption;
g. City Manager submits the proposed AOB and salary plan to the City Council at a public meeting for approval.

B. Balanced Budget
The City will strive to maintain a balanced budget over the Five-Year Financial Forecast, by meeting the following targets:.

1. Operating revenues must fully cover operating expenditures;

2. Ending fund balance must meet minimum policy levels. For the General Fund, this level has been established at 20% of operating expenditures for economic uncertainties and to support the City’s credit worthiness, cash flow, and response to local disasters.

C. Five-Year Financial Forecast
The City will prepare a five-year financial forecast bi-annually to assist in long range planning and policy development. The five-year forecast provides a tool to evaluate the ability of the City to fund proposed programs, operating and maintenance costs, capital expenditures, as well as operating costs related to future capital improvement projects.

1. Revenues are projected using a realistic approach, and are based on historical trends, stable residential development projections, internal analysis, and commercial growth that incorporates known development projects. Separate sets of assumptions are developed for major revenue types such as sales tax, property tax, community development fees, transient occupancy taxes, and investment income;

2. Departmental expenditure projections are developed using anticipated cost of living increases for general administrative operating costs. Additional assumptions are incorporated for major expenditure categories such as public safety to ensure that commercial and residential growth projections are addressed to main current service levels.

The five-year capital improvement program is reviewed with the annual operating budget, and maintenance costs of each proposed project are identified and included in the forecast;

3. The five-year forecast indicates whether projected revenue growth will support anticipated expenditures for current levels of service. However, as the City continues to grow, it is important to ensure that it can meet increasing demands and be in a position to respond to possible changes in economic conditions. The five-year forecast is a dynamic tool that requires bi-annual update and review of its underlying assumptions to keep the City in a position of strong fiscal condition.
531

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 311

BUDGET AND FISCAL POLICIES
D. Capital Improvement Program (CIP)

1. CIP Purpose - The purpose of the Capital Improvement Program (CIP) budget document is to serve as a planning tool, which coordinates the level ranking, financing, and scheduling of major projects undertaken by the City. All projects presented in the five-year CIP budget are carefully programmed to ensure the community’s capital improvement needs are met both now and in the future. In addition, the projects provide additional opportunities and access to the City and improve the overall quality of life as identified in the Quality of Life Master Plan (QLMP).

This document is dynamic and must be revised annually to address changing needs, level rankings, and financial conditions. 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 capital improvements in accordance with the plan. It also allows staff to budget operating and maintenance costs into the five-year projection in order to determine the total cost of each project before it is undertaken.

2. CIP Development - This CIP budget document is developed by incorporating input from City Council and key management team members, based on community comments and feedback received throughout the year. This team then, through several workshops, identifies and evaluates community needs in the areas of roads/streets, bridges, public buildings, parks and recreation facilities, and affordable housing projects. Each proposed project is reviewed and discussed to ensure funding, timing, and necessity. The budget workshop is held annually to provide the City Council with an opportunity to review each project in detail, and to receive public comments concerning the five-year program.

3. CIP Projects: $30,000 or More - The capital improvements presented in the budget are 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.

4. Project Manager - Every CIP project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status.

5. Project Benefit - Projects must identify a benefit and reference a Core Value (QLMP) goal.

6. CIP Review Committee - 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.

7. CIP Levels - Projects in the CIP are scheduled in each of five fiscal years based on community needs, as determined by the City Council and availability of funding. Level rankings in each major category (Circulation, Infrastructure/Other, Parks and Recreation, Affordable Housing, and Projects Funded By Community Facilities Districts) are assigned in accordance with the following guidelines:
532

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
312 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
a. 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. b. 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. c. 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.
d. Future Years Projects: The project will be an improvement to the community but does not necessarily need to be completed within a five-year capital improvement program time frame.

8. CIP Administrative Costs-The administrative costs associated with managing CIP projects are estimated (generally as five to ten percent of estimated construction costs) and included in each project budget.

9. CIP Operations and Maintenance (O & M) - Future operations and maintenance costs that result from CIP projects are estimated and identified in the CIP project sheets. These incremental future operating costs are incorporated into the five-year forecast.

10. CIP Phases - The CIP will emphasize project planning, with projects progressing through at least two and up to ten of the following phases:
a.Designate (Assigned). Appropriates funds based on projects designated for funding by the Council through adoption of the Capital Improvement Program budget. b.Study. Concept design, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, specification preparation for equipment purchases. c.Environmental Review. Compliance with CEQA, NEPA and other environmental studies, if necessary.
d.Real Property Acquisitions. Property acquisition for projects, if necessary. e.Site Preparation. Demolition, hazardous materials abatements, other pre-construction work.
f.Design. Final design, plan and specification preparation and construction cost estimation.
g.Construction. Construction contracts.
h.Construction Management. Contract project management and inspection, soils and material tests, other support services during construction. 533

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 313

BUDGET AND FISCAL POLICIES
i.Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other equipment items acquired and installed independently from construction contracts.

11. CIP Appropriation - The City's annual CIP appropriation for study, design, acquisition and/or construction is based on the projects designated by the Council through adoption of the Capital Improvement Program budget. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fund balance or allocated to another project. If project costs at the time of bid award are greater than budget amounts, five basic options are available:
a. Eliminate the project;
b. Defer the project for consideration to the next Capital Improvement Program budget period;
c. Rescope or change the phasing of the project to meet the existing budget; d. Transfer funding from another specified, lower-level ranking project. e. Appropriate additional resources as necessary from fund balance.

12. CIP Budget Carryover - Project accounts, which have been appropriated, will not lapse until completion of the project phase.

13. Program Objectives - Project phases will be listed as objectives in the program narratives of the programs, which manage the projects.

14. General Plan Consistency Review - 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 capital projects are also reviewed by the Traffic Safety Commission, and the Parks and Recreation Commission.

II. Financial Reporting
A. Annual Reporting
The City will prepare annual financial statements as follows:

1. The City will contract for an annual audit by a qualified independent certified public accountant (or accounting firm). The City will strive for an unqualified auditors' opinion.

2. The City will use generally accepted accounting principles in preparing its annual financial statements and will strive to meet the requirements of the GFOA's Award for Excellence in Financial Reporting program.

3. The City will issue audited financial statements within 180 days after year-end. 534

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
314 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
B. Interim Reporting
The City will prepare and issue timely interim reports on the City's fiscal status to the Council and staff. This includes online access to the City's financial management system by City staff; quarterly reports to the Council and Department Directors; and mid-year budget reviews.

C. Budget Amendments
The Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.

D. Extended Annual Reporting
The City will prepare extended annual reports as required by Federal and State requirements including, but not limited to:

1. State Controller Reports

2. Street Report
III. Fund Balance and Reserves
A. Fund Balance Policy
Fund balance represents the accumulation of actual revenues and other financing sources in excess of actual expenditures and other uses at year-end. In general terms, it represents the City’s accumulated “savings” from year to year, as any fund balance realized at year-end is added to (or deducted from if expenditures exceeded revenues for that particular year) the previous year’s fund balance. Fund balance is often referred to as “reserves.” B. Reserve for Economic Uncertainty
The City will maintain a minimum fund balance of at least 20% of operating expenditures in the General Fund, in order to adequately provide resources in the event of an unexpected draw on City finances. Eligible uses of these reserve funds include:
x Expenditures due to local disasters/acts of nature
x Loss of major revenue source(s) due to financial hardship or economic downturn x State-imposed take of local revenue/mandated payments x Significant unanticipated expenditures
x Significant payout of Comprehensive Annual Leave for employees leaving City service 535

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 315

BUDGET AND FISCAL POLICIES
C. Secondary Reserve for Contingencies
In addition to the Reserve for Economic Uncertainty, the City will strive to maintain an operating reserve within the General Fund in the amount of 5% of General Fund operating expenditures. Use of these reserve funds shall be limited to:
x Covering annual operating expenditures if revenue falls short of projections, creating an annual operating deficit.
x Making one-time investments in Capital infrastructure that will create long-term operational savings to the General Fund, leverage available grant funds, or provide funding for projects that will create an economic benefit to the City.

D. Future Capital Project Designations
The Council may designate specific fund balance levels for future development of capital projects that it has determined to be in the best long-term interests of the City.

E. Other Designations and Reserves
In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles.

F. Fund Balance Components
This policy establishes the procedures for reporting unrestricted fund balance in the General Fund financial statements, as well as a fund balance expenditures hierarchy. Fund Balance commitments and assignments ensure that there will be adequate financial resources to protect the City against circumstances such as revenue shortfalls and unanticipated expenditures. The Policy also authorizes and directs the Director of Finance to prepare financial reports and categorize fund balance per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

There are five separate components of fund balance which identify the specific purposes for which amounts can be spent: (1) Non-expendable Fund Balance – inherently non-expendable; (2) Restricted Fund Balance – externally enforceable limitations on use; (3) Committed Fund Balance – self-imposed limitations on use; (4) Assigned Fund Balance –limitation resulting from intended use; (5) Unassigned Fund Balance – residual net resources.

1.Non-expendable Fund Balance - Amounts that cannot be spent because they are either (a) not in spendable form, such as prepaid items or inventories; or (b) legally required to be maintained intact, such as the principal portion of an endowment.

2.Restricted Fund Balance - Amounts for a specific purpose that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, other governments’ regulations; or (b) imposed by law through constitutional provisions or enabling legislation.
536

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
316 | Annual Operating Budget

BUDGET AND FISCAL POLICIES

3.Committed Fund Balance - Amounts authorized for specific purposes by a government’s highest level of decision-making authority (City Council). These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period however, the amount can be determined subsequently. The City’s committed fund balance includes a reserve for economic uncertainty. Amounts are committed to finance any significant unanticipated revenue shortfalls, negative State budget impacts or impacts from natural disasters or other catastrophic events.

4.Assigned Fund Balance - Amounts that are constrained for specific purposes but are neither restricted nor committed. For all governmental funds other than the General Fund, any remaining amounts not classified as non-expendable, restricted, or committed are considered assigned. For the General Fund, this policy delegates the authority to assign amounts to be used for specific purposes to the Director of Finance in consultation with the City Manager for the purpose of reporting these amounts in annual financial statements.

5.Unassigned Fund Balance - Residual net resources of the General Fund in excess of what can be classified in one of the other four categories.

G. Hierarchy of Spending Fund Balance
Restricted fund balance should be spent first when an expenditure is incurred for which both restricted and unrestricted fund balance is available. When an expenditure is incurred for purposes where amounts in any of the unrestricted classifications of fund balance could be used, committed amounts are to be spent first, followed by assigned amounts and then unassigned amounts.

H. Unassigned Fund Balance – General Fund
At the end of each fiscal year, the Finance Department will report on the audited year-end financial results. In the event that actual General Fund revenues exceed expenditures and encumbrances, a year-end operating surplus shall be reported. Any year-end operating surplus which exceeds the levels required by the reserve policies, noted above, will be deemed as Unassigned Fund Balance, and shall be appropriated for one-time (non-recurring) expenditures in accordance with the following guidelines, subject to City Council approval. Ongoing, or recurring expenditures, are not appropriate uses of available Unassigned Fund Balance.

1. Public Safety equipment or non-recurring programs

2. Asset Management reserves

3. Capital improvement projects

4. Reduction of unfunded liabilities related to CalPERS pension and Other Post-Employment Benefits (OPEB)

5. Reduction, or avoidance, of City debt
537

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 317

BUDGET AND FISCAL POLICIES
IV. Transactions and Use Tax Funding (Measure S)
A. Measure S Revenue
Pursuant to Ordinance 16-06, on November 8, 2016, the people of Temecula approved a local 1% Transactions and Use Tax, effective on April 1, 2017, to maintain 9-1-1 emergency response times, prevent cuts to local paramedic, police, fire protection, school safety patrols, youth/after-school programs, senior services, disabled services, improve freeway interchanges, reduce traffic and provide for other general services.

B. Appropriation Priorities of Measure S Revenue
In accordance with the approved ballot language related to Measure S, maintaining public safety services is the City’s top priority, followed by the appropriate maintenance and replacement of City assets to ensure long-term viability of City operations. As surplus funds are available, the City Council may allocate Measure S funding to capital projects identified in the Capital Improvement Program as well as any associated general services.

1. Public Safety
a. Within the Temecula Sheriff’s Office, the City will strive to maintain a target staffing ratio of one sworn officer per 1,000 residents (1:1,000), as outlined in the City’s General Plan. Upon receiving Population Estimate from the California Department of Finance, in May of each year, the Temecula Sheriff’s Office staffing ratio shall be evaluated, and if the ratio falls below 1:1,000, the City Council may allocate available Measure S resources to meet the target staffing ratio.
b. Desired Fire Department staffing levels include four persons per fire engine or fire truck (4-0 staffing). During the Annual Operating Budget process, the Fire staffing ratio shall be evaluated, and if the ratio falls below 4-0 staffing, the City Council may allocate available Measure S resources to meet the target staffing ratio.

2. Asset Management/Investment
In accordance with the Asset Management and Replacement Policy, noted in Section VII., the City strategically manages the life cycle and replacement of its assets; including capital infrastructure, City facilities and parks, fleet vehicles and equipment, and the City’s technology and communication systems. 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.
538

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
318 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
The City’s Street and road network serves as the capital infrastructure for public transportation in and around the City. A Pavement Management Study is designed to evaluate the current condition of the road network and establish a recommended level of investment necessary to properly maintain the condition of the street and road network. The City Council will strive to allocate an amount up to the recommended level of investment, as stated in the most recent Pavement Management Study, to the Capital Improvement Program – Pavement Rehabilitation Program, or other appropriate capital infrastructure projects designated for street and road network improvements.

The City Council will strive to allocate an amount to be deposited into each asset replacement fund, based on the results of the specific asset management plan conducted periodically for each grouping of asset types (i.e., facilities, parks, vehicles and technology).

3. Capital Improvement Projects
A Capital Improvement Project is defined as a major project, which exceeds $30,000 in cost, has a long-term life span, and is generally non-recurring. The City Council may allocate available Measure S resources to fund projects identified in the Capital Improvement Program.

4. General Services
Operations and maintenance costs associated with City programs, administration and general services to the public are considered eligible appropriations of Measure S resources, so long as the abovementioned priorities are considered first.
a. Operations and maintenance costs related to the addition of a new City facility, program or service funded by Measure S, shall have priority over existing City general services.

V. Contingency Planning
In response to adverse financial and economic conditions that could negatively impact the City’s fiscal health, a Contingency Plan will provide for a measured response to potential fiscal challenges, as opposed to reactionary decision-making that could hinder the long-term financial solvency of the City.

In accordance with Budget Policies III.B and III.C, the City will strive to maintain reserves in the amount of 25% of General Fund operating expenditures. Eligible uses of these reserve funds are outlined in the aforementioned policy; however, this Contingency Plan will address the hierarchy of utilizing reserve funds, in the event the City experiences significant or sudden fiscal constraints.

The type of fiscal challenge will dictate the appropriate budgetary measure to implement in order to ensure solvency. If the fiscal constraint cannot be absorbed by annual budgetary savings, the following hierarchy shall be followed:
539

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 319

BUDGET AND FISCAL POLICIES
A. One-Time Events
In the event the City is faced with a non-recurring fiscal constraint, such as a State mandated payment or a natural disaster, the use of reserve funds is an appropriate mitigation. The Secondary Reserve for Contingencies shall be utilized first, and fully exhausted prior to utilizing the Economic Uncertainty Reserve.

B. Ongoing Fiscal Constraints
In the event the City experiences the loss of a major revenue source outside of the City’s control (i.e. acts of legislation, corporate decisions and/or economic downturn), the City will need to adjust its operations in order to maintain a balanced budget. Circumstances may arise when the City is unable to react quick enough to offset a sudden loss in revenue, and will be required to utilize reserves to supplant the current Operating Budget. The Secondary Reserve for Contingencies shall be utilized first, and fully exhausted prior to utilizing the Economic Uncertainty Reserve. Continued use of reserve funds shall not exceed two budget cycles, to allow adequate time for the implementation of operational changes, while limiting the ongoing dependency on reserves.

Implementation of Contingency Plan actions requires the majority approval of the City Council.

VI. Staffing
A. Regular Staffing

1. The budget will fully appropriate the resources needed for authorized regular staffing.

2. Regular benefitted employees will represent the core work force and the preferred means of staffing ongoing, year-round program activities and services. The City will strive to provide competitive compensation and benefits for its authorized regular workforce. Each regular employee will:
a. Fill a position on the Schedule of Authorized Positions in the applicable, approved Annual Operating Budget;
b. Receive compensation and benefits consistent with labor agreements or other City Council approved compensation plans.

3. To manage the growth of the regular work force and overall staffing costs, the City will follow these procedures:
a. The Council will authorize all regular positions.
b. The Human Resources Department will coordinate and approve the hiring of all regular employees.
c. Supplement core staff with a balanced workforce consisting of part-time, contract, and independent contractors.
d. All requests for additional regular positions will include evaluations of:
x The demand for, term and expected results of the proposed activity; 540

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
320 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
x Staffing and material costs including salary, benefits, equipment, uniforms, clerical support and facilities;
x The ability of private industry to provide the services being demanded; x Additional revenues or cost savings, which may be realized. e. Periodically, and before any request for additional regular positions, existing programs will be re-evaluated to determine if services can be provided with existing regular employees.

B. Project Staffing

1. The hiring of project employees will not be used as amethod for expanding the City's regular workforce on a long-term basis.

2. Project employees include all employees other than regular employees, temporary staffing, elected officials and volunteers. Project employees will generally augment regular City staffing as extra-help employees, seasonal employees, and interns.

3. The City Manager and Department Directors will encourage the use of project employees to meet temporary peak workload requirements, fill interim vacancies, and accomplish tasks where less than full-time, year-round staffing is required. Under this guideline, project employees will be hired for up to one year at a time in conjunction with the annual operating budget on an at-will basis. Moreover, project employee hours will generally not exceed 50% of a regular, full-time position (1,000 hours annually). There may be limited circumstances where the use of project employees on an ongoing basis in excess of this target may be appropriate due to unique programming or staffing requirements. However, any such exceptions must be approved by the City Manager based on the review and recommendation of the Human Resources Department.

C. Temporary Staffing

1. Temporary Staffing agencies can be contacted only in the case of a short-term assignment such as sick leave, disability leave, maternity leave, isolated peak in workload, etc.

2. The City will pay the Temporary Staffing Agency a fair base rate for the employee with a negotiated markup while the temporary employee is providing work for the City.

D. Work Hours

1. Regular employee, project employee, and temporary employee work hours will be based on the needs of the City and the position.

2. Employee work hours may be flexed in an effort to minimize overtime.

E. Overtime Management

1. Overtime should be used only when necessary and when other alternatives are not feasible or cost effective.
541

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 321

BUDGET AND FISCAL POLICIES

2. All overtime must be pre-authorized by a Department Director or delegated in accordance with existing policy.

3. Departmental operating budgets should reflect anticipated annual overtime costs and departments will regularly monitor overtime use and expenditures.

4. When considering the addition of regular, project, or temporary staffing, the use of overtime as an alternative will be considered. The department will take into account:
a. The duration that additional staff resources may be needed; b. The cost of overtime versus the cost of additional staff; c. The skills and abilities of current staff;
d. Training costs associated with hiring additional staff; e. The impact of overtime on existing staff;
f. The impact on quality of services.

F. Independent Contractors
Independent contractors are not City employees. They may be used in two situations:

1. Short-term, peak workload assignments to be accomplished using personnel contracted through an outside employment agency (OEA). In this situation, it is anticipated that City staff will closely monitor the work of OEA employees and minimal training will be required.

However, they will always be considered the employees of the OEA and not the City. All placements through an OEA will be coordinated through the Human Resources Department and subject to the approval of the Human Resources Department.

2. Construction of public works projects and delivery of operating, maintenance or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills and equipment will generally be determined and provided by the contractor. Contract awards will be guided by the City's purchasing policies and procedures.

G. Productivity
The City will continuallymonitor and review the City’s methods of operation to ensure that services continue to be delivered in the most cost-effective manner possible. This review process encompasses a wide range of productivity issues, including:

1. Analyzing systems and procedures to identify and remove unnecessary review requirements.

2. Evaluating the ability of new technologies and related capital investments to improve productivity.

3. Developing the skills and abilities of all City employees.

4. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance.
542

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
322 | Annual Operating Budget

BUDGET AND FISCAL POLICIES

5. Evaluating the ability of the private sector to perform the same level of service at a lower cost.

6. Periodic formal reviews of operations on a systematic, ongoing basis.

7. Maintaining a decentralized approach in managing the City's support service functions.

Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by:
a. Encouraging accountability by delegating responsibility to the lowest possible level; b. Stimulating creativity, innovation and individual initiative; c. Reducing the administrative costs of operation by eliminating unnecessary review procedures;
d. Improving the ability of the organization to respond to changing needs, and identify and implement cost-saving programs;
e. Assigning responsibility for effective operations and citizen responsiveness to the department.

H. Contracting for Services – Private Sector

1. General Policy Guidelines
a. Contracting with the private sector for the delivery of services may provide the City with a significant opportunity for cost containment and productivity enhancements. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost-effective programs. b. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies and ongoing operating and maintenance services.
c. In evaluating the costs of a private sector contracts compared with in-house performance of the service, indirect, direct, and contract administration costs of the City will be identified and considered.
d. Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below.
e. For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition reassignment to absorption by the contractor.

2. Evaluation Criteria –Within the general policy guidelines stated above, the cost effectiveness of contract services in meeting established service levels will be determined on a case-by- case basis using the following criteria
543

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 323

BUDGET AND FISCAL POLICIES
a. Is a sufficient private sector market available to competitively deliver this service and assure a reasonable range of alternative service providers? b. Can the contract be effectively and efficiently administered? c. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? d. Can a private sector contractor better respond to expansions, contractions or special requirements of the service?
e. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as contractor’s performed after bid award? f. Does the use of contract services provide us with an opportunity to redefine service levels?
g. Will the contract limit our ability to deliver emergency or other high priority services? h. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for this delivery?
I. Contracting for Services – Government Service Contracts

1. General Policy Guidelines:
a. Contracting with other government entities for the delivery of services such as police and fire provides the City with significant opportunities for cost containment and productivity enhancements. The City utilizes government service contracts to deliver municipal services as a key element in the City’s continuing efforts to provide cost- effective programs.
b. Sheriff Contract Services – The City contracts with Riverside County Sheriff’s Department for police services. Under this contract the City maintains a ratio of one (1) uniformed police officer for every one-thousand (1,000) residents. The Citywill ensure that contracted staffing levels are compatible with the City population and needs.

Contracting with the County facilitates an efficient, effective and affordable model of policing for the community. The Sheriff contract allows the City to partner with the County to leverage resources to reduce costs for supervision, administration, training, clerical support, vehicles and equipment.
c. Fire Contract Services - The City contracts with the Riverside County Fire Department for all fire services. Contracting with the County facilitates an efficient, effective and affordable model of fire protection, disaster preparedness, fire prevention, and emergency operation services for the community. The fire contract allows the City to partner with the County to leverage resources to reduce costs for supervision, administration, training, clerical support, vehicles and equipment. 544

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
324 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
J. Contracting for Services – Regional Approach

1. A regional approach to public services leverages economies of scale to improve outcomes and services to the citizens. Therefore, prior to entering into private or government service contracts, the City will require the completion of a systematic assessment to determine whether a regional approach to providing services is necessary. a. Animal Control Services - The City contracts with Animal Friends of the Valleys for animal control services and the County of Riverside (via the Southwest Community Financing Authority) for animal sheltering services. Contracting with multi-agencies for these services demonstrates a regional approach of leveraging resources to provide efficient services (at a reduced cost).

K. Comprehensive Annual Leave Payout

1. Upon an employee’s separation from City service, the employee shall have the option to defer their official separation date to that which corresponds to the exhaustion of the employee’s Comprehensive Annual Leave (CAL) balance in accordance with established personnel policies and/or labor agreements.

2. When an employee vacates a position using paid time off (e.g., Comprehensive Annual Leave) for an extended period of time, the vacant position will be evaluated by the Department Director, and upon City Manager approval, the Department Director may fill the vacant position in order to continue operations without disruption to City services. In the event the department does not have adequate savings to offset the cost to fill the vacancy, the City Manager is authorized to transfer an amount equal to the funding shortfall from the General Fund Non-Departmental Account No. 001.199.999.5353 – Staffing Continuity Reserve to the affected department.

VII. Asset Management and Replacement
The City has established multiple asset management and replacement funds to accumulate the necessary financial resources to properly maintain City assets over the long-term. The replacement funds are designated for the purpose of purchasing replacement assets at the end of the item’s useful life.

Vehicles, equipment, technology, and facilities are tracked on separate replacement schedules, used to determine the annual contribution amounts for each department owning an eligible asset. The annual contribution amounts are equivalent to the estimated cost to replace the asset at the end of its useful life divided by the number of years of useful life.

A. Replacement Funds

1. Fund 310 – Vehicles and Equipment Fund. Eligible assets include vehicles and large equipment items that have a useful life longer than three years and cost in excess of $10,000.

2. Fund 325 – Technology Replacement Fund. Eligible assets include those technology-related assets that have a useful life longer than three years and cost in excess of $5,000. 545

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 325

BUDGET AND FISCAL POLICIES

3. Fund 335 – Support Services Replacement Fund. Eligible assets include copier machines utilized by all City departments and maintained by the Information Technology/Support Services department.

4. Fund 350 – Facilities Replacement Fund. Eligible assets include City buildings, systems, and infrastructure necessary to properly operate and maintain all City facilities.

5. Fund 191 – Streetlight Replacement Fund. This fund was established when the City acquired the streetlight network from Southern California Edison, in order to have available resources to repair and replace the light standards, bulbs and other infrastructure of the streetlight network. Resources for this fund are accumulated through Service Level B rate and charges assessed on the properties utilizing the Citywide residential streetlight network.

The funds are discretionary in nature and may be reappropriated by the City Council to provide financial reserves to respond to natural disasters and other emergencies; provide a source for internal loans and liquidity; or serve as collateral for City debt issues.

VIII. Capital Improvement Project Financing and Debt Management A. Policy Goals Related to Debt Management
The City is committed to protecting taxpayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs. The following policy goals shall be considered before the issuance of debt.

1. Remain committed to long-term financial planning, maintain appropriate reserves levels and employ prudent practices in governance, management and budget administration, including debt issuance and management.

2. Support long-term infrastructure and economic growth, and not use long-term debt to support routine operating expenditures or structural budget deficits.

3. Ensure intergenerational fairness by using long-term debt only for assets that provide benefits over multiple decades.

4. Use debt strategically to leverage grants, partnerships and catalytic development opportunities when they provide clear long-term public benefit.

5. Protect the City’s long-term fiscal resilience by ensuring that current decisions to not limit future councils’ ability to respond to economic uncertainty.

6. Comply with applicable State and Federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.
546

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
326 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
B. Types of Long-Term Debt That May Be Issued
To implement the financing (or refinancing) objectives, the City may consider the issuance of generally accepted types of debt, including:

1.Revenue Bonds – limited-liability obligations tied to a specific fund or revenue stream where the projects financed clearly benefit or relate to the fund or are otherwise permissible uses of the special revenue.

7.Special Assessment/Special Tax Bonds – limited liability obligations secured by special assessments or special taxes as described below under “Land-Based Financings”.

8.General Fund Supported Lease Revenue Bonds or Certificates of Participation – generally involves a lease arrangement between the City and a joint powers authority (or another entity), whereby bonds are issued by the authority for the financing of the project, and the City agrees to make lease payments in sufficient amounts to secure debt service payments on the bonds.

9.General Obligation Bonds – bonds secured by either a pledge of full faith and credit of the General Fund or by a promise to levy taxes in an unlimited amount necessary to pay debt service (i.e., a property tax in excess of the 1% basic ad valorem property tax rate) that will be issued only after two-thirds voter approval pursuant to the State Constitution and other applicable laws.

10.Tax Increment Bonds – bonds secured by a portion of ad valorem property tax that are allocated to the successor agency (of the former redevelopment agency) or another entity formed pursuant by law (such as an enhanced infrastructure financing district or a community revitalization infrastructure district). The successor agency will consider issuance of bonds for refunding purposes only. The City has not yet formed any enhanced infrastructure financing district, community revitalization infrastructure district or any similar entity, and will undertake applicable legal and feasibility analysis at the time of consideration of the formation of any such entity.

11.Conduit Financing Bonds – bonds as described below under “Conduit Financings,” for which debt service will be secured by the applicant’s payments and the role of the City (or the City affiliated entity) will be limited to be the conduit issuer, without financial liability.

The above list is not exhaustive. The City may from time to time consider other types of debt to accommodate its financing and refinancing objectives
C. Capital Improvement Project Financing

1. The City will consider the use of debt financing only for one-time capital improvement projects and only under the following circumstances:
a. When the project's useful life will exceed the term of the financing. b. When project revenues or specific resources will be sufficient to service the long- term debt.
547

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 327

BUDGET AND FISCAL POLICIES

2. The City will include debt issuances in the Capital Improvement Program and will reflect the ongoing debt service costs in the City’s Five-Year Financial Forecast.

3. Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures.

4. Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes or developer contributions when benefits can be specifically attributed to users of the facility. Accordingly, development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community facilities.

5. The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in funding capital improvements:
a. Factors Favoring Pay-As-You-Go Financing:
x Current revenues and adequate fund balances are available, or project phasing can be accomplished.
x Existing debt levels adversely affect the City’s credit rating. x Market conditions are unstable or present difficulties in marketing. b. Factors Favoring Long-Term Financing:
x Revenues available for debt service are deemed sufficient and reliable so that long-term financings can be marketed with investment grade credit ratings. x The project securing the financing is of the type, which will support an investment grade credit rating.
x Market conditions present favorable interest rates and demand for City financings.
x A project is mandated by State or Federal requirements, and resources are insufficient or unavailable.
x The project is immediately required to meet or relieve capacity needs and current resources are insufficient or unavailable.

D. Criteria for Obligating the General Fund
The City will not obligate the General Fund to secure long-term financings except when the following criteria have been met. Prior to the authorization of any General Fund-Supported Debt, the Council must consider the following criteria and approve the General Fund Obligation Checklist attached as Exhibit A.

1. The General Fund budget is structurally balanced for the ensuing five-year period. 548

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
328 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
a. A structurally balanced General Fund budget is one in which ongoing operating expenditures are funded entirely by ongoing recurring revenues, without reliance on (i) one-time revenues, (ii) utilization of reserves, (iii) utilization of unassigned General Fund balance, or (iv) interfund transfers used as a substitute for operating revenues.

2. The Reserve for Economic Uncertainty is fully funded in accordance with Budget Policy III.B.

3. The City’s Pension is 100% funded.
a. The City’s CalPERS Miscellaneous pension funded ratio, measured using the most recent actuarial valuation report, is at or above one hundred percent (100%) on an actuarial basis, considering both assets held with CalPERS and assets held in the City’s Section 115 Pension Trust.
b. If the funded ratio is below one hundred percent (100%), General Fund- Supported Debt may be authorized only if: (i) the City is in full compliance with the contribution schedule and funding targets established in the City’s Pension Funding Policy, including any supplemental contributions required to return the plan to 100% funded status within the timeline established therein; and (ii) the Council makes specific written findings that deferral of the proposed debt issuance until pension funding targets are restored would result in greater fiscal harm than proceeding with issuance.

4. Debt Service shall not exceed 10% of General Fund Operating Revenue, excluding one- time Interfund Transfers.
a. An independent feasibility analysis, prepared by or in consultation with the City’s Municipal Advisor, demonstrates that projected annual debt service on the proposed obligation, when combined with all existing General Fund-Supported Debt service, will not cause aggregate annual General Fund-Supported debt service to exceed ten percent (10%) of operating, recurring General Fund revenues (net of interfund transfers in) in any year through final maturity, based on conservative revenue projections consistent with the City’s Five-Year Financial Forecast.

5. Financial analysis of alternative financing methods has been evaluated and deemed to be unavailable, insufficient, or materially less cost-effective than General Fund supported debt.

6. The proposed issuance will not adversely impact the City’s Credit Rating. 549

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 329

BUDGET AND FISCAL POLICIES
a. The Director of Finance, in consultation with the City’s Municipal Advisor, has provided a written assessment of the projected impact of the proposed issuance on the City’s credit ratings and overall debt burden metrics. If the proposed issuance is reasonably expected to result in a credit rating downgrade, the Council shall make specific findings that the public benefit of the proposed financing justifies the expected increase in current and future borrowing costs.

7. The projected useful life of the asset being financed exceeds the term of the debt issuance.

E. Debt Management

1. An internal feasibility analysis will be prepared for each long-term financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt service.

2. The City will generally conduct financings on a competitive basis. However, negotiated financings may be used due to market volatility or the use of an unusual or complex financing or security structure.

3. The City will seek an investment grade rating (Baa/BBB or greater) on any direct debt and will seek credit enhancement such as letters of credit or insurance when necessary for marketing purposes, availability, and cost-effectiveness.

4. The City will monitor all forms of debt annually coincident with the City’s Five-Year Financial Forecast preparation and review process and report concerns and remedies, if needed, to the Council.

5. The City will diligently monitor its compliance with bond covenants, including but not limited to any Federal tax compliance requirements with respect to any tax-exempt debt obligations, and ensure its adherence to applicable regulations.

6. The City will maintain good, ongoing communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement).

7. The City will periodically review the requirements of, and will remain in compliance with, any continuing disclosure undertakings, particularly under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 with respect to debt issues.

8. The City will diligently monitor the use of proceeds from its debt issues, to ensure that the proceeds will be directed to the intended use. The City will maintain records of the intended use of the proceeds when the debt was originally issued and the use of the proceeds at the time they are expended. Such records shall be retained so long as the debt issue (and any subsequent debt issue which refunded the debt) remains outstanding and for three years following the final maturity or redemption. The City shall consult legal counsel regarding the use of proceeds that is different from the original intended purpose. 550

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
330 | Annual Operating Budget

BUDGET AND FISCAL POLICIES

9. So long as required by California Government Code Section 8855(k), the City shall file annual report(s) to the California Debt and Investment Advisory Commission (CDIAC) in accordance with CDIAC’s requirements on a timely basis. The City shall retain a copy of each such annual report.

10. In connection with each debt issue, the City will file or cause Bond Counsel or another applicable member of the financing team to file on behalf of the City, a report of proposed issuance and a report of final sale, as required by California Government Code Section 8855(i) and (j).

F. Debt Limits

1. General Purpose Debt Limits. The City will carefully monitor its levels of general-purpose debt. Because the general-purpose debt capacity is limited, it is important that the City only use general-purpose debt financing for high-priority projects where it cannot reasonably use other financing methods for two key reasons:
a. In accordance with Government Code Section 43605, the City shall not incur an indebtedness for public improvements which exceed 15 percent of the assessed value of all real and personal property of the City. Debt obligations from taxes levied on taxable property is subject to the legal debt limitation; b. Funds committed for debt repayment today are not available to fund operations in the future. In evaluating debt capacity, general-purpose annual debt service payments should generally not exceed 10% of General Fund revenues. Further, direct debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement outlays will be funded from long-term financings.

G. Independent Disclosure Counsel
For any public offering debt issue, the City will retain independent disclosure counsel to assist with the preparation of the official statement or any other similar offering document and the continuing disclosure agreement. The roles of bond counsel and disclosure counsel may be served by the same firm, based on the City’s determination on a case-by-case basis.

H. Land-Based Financings

1. Public Purpose. There will be a clearly articulated public purpose in forming an assessment or special tax district in financing public infrastructure improvements. This should include a finding by the Council as to why this form of financing is preferred over other funding options such as impact fees, reimbursement agreements or direct developer responsibility for the improvements.
551

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 331

BUDGET AND FISCAL POLICIES

2. Eligible Improvements. Except as otherwise determined by the Council when proceedings for district formation are commenced, preference in financing public improvements through a special tax district will be given for those public improvements that help achieve clearly identified community facility and infrastructure goals in accordance with adopted facility and infrastructure plans as set forth in key policy documents such as the General Plan, Specific Plan, Facility or Infrastructure Master Plans, or Capital Improvement Plan.

Such improvements include study, design, construction and/or acquisition of:
a. Public safety facilities;
b. Major transportation system improvements, such as freeway interchanges; bridges; intersection improvements; construction of new or widened arterial or collector streets (including related landscaping and lighting); sidewalks and other pedestrian paths; transit facilities; and bike paths;
c. Storm drainage, creek protection and flood protection improvements; d. Parks, trails, community centers and other recreational facilities; e. Open space;
f. Cultural and social service facilities;
g. Other governmental facilities and improvements such as offices, information technology systems and telecommunication systems.

3. Active Role. Even though land-based financings may be a limited obligation of the City, staff will play an active role in managing the district. This means that the City will select and retain the financing team, including the financial advisor, bond counsel, trustee, appraiser, disclosure counsel, assessment engineer, special tax consultant and underwriter, as appropriate. Any costs incurred by the City in retaining these services will generally be the responsibility of the property owners or developer and will be advanced via a deposit when an application is filed; or will be paid on a contingency fee basis from the proceeds from the bonds.

4. Credit Quality. When a developer requests a district, the City will carefully evaluate the applicant’s financial plan and ability to carry-out the project, including the payment of assessments and special taxes during build-out. This may include detailed background, credit and lender checks, and the preparation of independent appraisal reports and market absorption studies. For districts where one property owner accounts for more than 25% of the annual debt service obligation, a letter of credit further securing the financing may be required.

5. Reserve Fund. A reserve fund should be established in the lesser amount of: the maximum annual debt services; 125% of the annual average debt service; or 10% of the bond proceeds. 552

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
332 | Annual Operating Budget

BUDGET AND FISCAL POLICIES

6. Value-to-Debt Ratios. The minimum value-to-debt ratio should generally be 4:1. This means the value of the property in the district, with the public improvements, should be at least four times the amount of the assessment or special tax debt. In special circumstances, after conferring and receiving the concurrence of the City’s financial advisor and bond counsel that a lower value-to-debt ratio is financially prudent under the circumstances; the City may consider allowing a value-to-debt ratio of 3:1. TheCouncil should make special findings in this case.

7. Appraisal Methodology. Determination of value of property in the district will be based upon the full case value as shown on the ad valorem assessment roll or upon an appraisal by an independent Member Appraisal Institute (MAI). The definitions, standards and assumptions to be used for appraisals will be determined by the City on a case-by-case basis, with input from City consultants and district applicants, and by reference to relevant materials and information promulgated by the State of California, including the Appraisal Standards for Land Secured Financings prepared by the California Debt and Investment Advisory Commission.

8. Capitalized Interest During Construction. Decisions to capitalize interest will be made on a case-by-case basis, with the intent that if allowed, it should improve the credit quality of the bonds and reduce borrowing costs, benefiting both current and future property owners.

9. Maximum Burden. Annual assessments (or special taxes in the case of Mello-Roos or similar districts) should generally not exceed 1% of the sales price of the property; and total property taxes, special assessments and special taxes payments collected on the tax roll should generally not exceed 2%, with priority going toward special assessments and/or special taxes used to offset any negative fiscal impact of providing municipal services, as determined by a Fiscal Impact Analysis.

10. Benefit Apportionment. Assessments and special taxes will be apportioned according to a formula that is clear, understandable, equitable and reasonably related to the benefit received by, or burden attributed to, each parcel with respect to its financed improvement.

No annual escalation factor will be permitted for special assessments or special taxes that support debt service on bonds utilized to finance public infrastructure. Annual escalation factors on special assessments and/or special taxes used to fund municipal services shall be as identified in the Fiscal Impact Analysis.

11. Special Tax District Administration. In the case of Mello-Roos or similar special tax districts, the total maximum annual tax should not exceed 110% of annual debt service. The rate and method of apportionment should include a back-up tax in the event of significant changes from the initial development plan and should include procedures for prepayments.

12. Foreclosure Covenants. In managing administrative costs, the City will establish minimum delinquency amounts per owner, and for the district as a whole, on a case-by-case basis before initiating foreclosure proceedings.
553

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 333

BUDGET AND FISCAL POLICIES

13. Disclosure to Bondholders. In general, each property owner who accounts for more than 10% of the annual debt service or bonded indebtedness must provide ongoing disclosure information annually as described under SEC Rule 15(c)-12.

14. Disclosure to Prospective Purchasers. Full disclosure about outstanding balances and annual payments should be made by the seller to prospective buyers at the time that the buyer bids on the property. It should not be deferred to after the buyer has made the decision to purchase. When appropriate, applicants or property owners may be required to provide the City with a disclosure plan.

I. Conduit Financings

1. The City will consider requests for conduit financing on a case-by-case basis using the following criteria:
a. The City’s bond counsel will review the terms of the financing, and render an opinion that there will be no liability to the City in issuing the bonds on behalf of the applicant;
b. There is a clearly articulated public purpose in providing the conduit financing; c. The applicant is capable of achieving this public purpose.

2. The review of requests for conduit financing will generally be a two-step process:
a. First, obtaining Council’s interest in the request, and establishing the ground rules for evaluating it;
b. Second, return to Council with the results of this evaluation and recommend approval of appropriate financing documents, if warranted.

This two-step approach ensures that the issues are clear for both the City and applicant, and that key policy questions are answered.

3. The work scope necessary to address these issues will vary from request to request and will have to be determined on a case-by-case basis. Additionally, the City should generally be fully reimbursed for costs incurred in evaluating the request; however, this should also be determined on a case-by-case basis.

J. Refinancings

1. General Guidelines. Periodic reviews of all outstanding debt will be undertaken to determine refinancing opportunities. Refinancings will be considered (within Federal tax law constraints) under the following conditions:
a. There is a net economic benefit;
b. It is needed to modernize covenants that are adversely affecting the City’s financial position or operations;
c. The City wants to reduce the principal outstanding in order to achieve future debt service savings, and it has available working capital to do so from other sources. 554

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
334 | Annual Operating Budget

BUDGET AND FISCAL POLICIES

2. Standards for Economic Savings. In general, refinancing for economic savings will be undertaken whenever net present value savings of at least five percent (5%) of the refunded debt can be achieved.
a. Refinancings that produce net present value savings of less than five percent will be considered on a case-by-case basis, provided that the present value savings are at least three percent (3%) of the refunded debt.
b. Refinancings with savings of less than three percent (3%), or with negative savings, will not be considered unless there is a compelling public policy objective.

K. Arbitrage Rebate Compliance
The City will comply with the Internal Revenue Service (IRS) arbitrage rebate and yield restriction requirements for its tax-exempt financings.

1. Arbitrage Rebate is the requirement that issuers of tax-exempt bonds pay the federal government any earnings made by investing bond proceeds in higher-yielding taxable securities. The IRS allows bond issuers to earn interest up to the arbitrage yield or interest paid on the bonds. To prevent the City from profiting from tax-exempt borrowing, this rule requires calculating arbitrage and potentially rebating it to the IRS every five years.

2. The City Treasurer may utilize a third-party service provider to assist with post-issuance tax compliance matters to comply with IRS rules and regulations.

IX. Creation of Services Community Facilities District
It is the City’s goal to support new development projects that address public need and provide a public benefit. In consideration of these projects, the City desires to ensure that the provision of both general services and public safety services are addressed.

The City shall require developments that propose an increase in a higher density residential use than what is currently allowed by the General Plan or Zoning Code to form, or annex into, a Community Facilities District (CFD) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, for the purposes of providing municipal services and public safety services.

The City shall make the final determination as to which public financing mechanism, if any, shall be used to assist in the funding of a service. The City may confer with the applicant to learn of any unique circumstances before making its final determination.

A. Eligible Expenses

1. All City and any consultant costs incurred in evaluating applications requesting the establishment of CFDs shall be paid by the applicant by advance deposit increments, or as otherwise agreed upon in writing by the City. The City shall not incur any non-reimbursable expense for processing such applications. Expenses not chargeable to the District shall be borne by the applicant.
555

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 335

BUDGET AND FISCAL POLICIES

2. In general, the services to be financed by a public services CFD are those identified in the Mello-Roos Community Facilities Act which are provided by the City including:
a. Police protection services, including put not limited to, criminal justice services. b. Fire protection and suppression services, and ambulance and paramedic services. c. Provision of municipal services including, but not limited to, parks and park maintenance, street maintenance, facility maintenance, parkway maintenance, recreation funding, library services, open space, flood and storm protection services, and operation of museums and cultural facilities.
d. Other services as may be permitted pursuant to the Mello-Roos Community Facilities Act as it may be amended from time to time.

B. Selection of Consultants

1. The City shall select and solely manage, coordinate, and direct the work of the special tax consultant, assessment engineer, financial advisor, special district administrator, and other professionals and consultants it deems appropriate in relation to the formation of, or annexation into, a Services CFD.

C. Fiscal Impact Analysis (FIA)

4. The City shall enter into an agreement with a third-party consultant to conduct a fiscal impact analysis that analyzes the cost of the provision of services to the proposed development.
a. The applicant shall be responsible for incurring all costs of the FIA and pay a deposit in advance, or as otherwise agreed upon, in writing, by the City. b. The FIA shall utilize the final project description, as provided by the applicant, for analysis. The project description must also match that description used for the necessary California Environmental Quality Act (CEQA) analysis. c. The FIA shall utilize the most current adopted budget data, to be provided by the City, to develop the projected cost of services relative to the proposed development. The most current available data regarding CPI and other inflators, contract increases, expenditure and revenue trends, and future known legislation affecting the City’s budget shall be used.
d. The FIA shall maintain a 1:1,000 police officer ratio, as the population of the City continues to increase.
e. If the FIA is completed more than one year prior to the completion of the entitlement process, the FIA shall be updated to reflect the most recent budget data. f. If a significant change in in the City’s fiscal environment occurs between the finalization of the FIA and the completion of the entitlement process, the City may require an updated FIA to be completed.
556

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
336 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
D. Rate and Method of Apportionment

1. The findings of the FIA will be utilized in the determination of the rate and method of apportionment (RMA) for the CFD, as calculated by a third-party special tax consultant, after the proposed development has received its entitlements.

2. The RMA should provide for an annual increase in the maximum special tax.

3. For residential components of development projects, the projected ad valorem tax and other direct and overlapping debt for the proposed CFD shall not exceed 2.0% of the anticipated initial sales price to the ultimate home buyer, per City policy. Any deviations from the foregoing will not be permitted unless specifically approved by the City Council.

4. The term of the Services CFD shall be in perpetuity, unless otherwise agreed to by the City Council.

5. The City will consider the apportionment of assessments to those properties that are found by the assessment engineer to be benefited by the municipal services provided. The assessment engineer will review the services provided to each parcel in order to comply with the requirements of Proposition 218 and applicable State statutes.

6. The rate and method of special taxes will be structured in such a manner as to result in a fair and reasonable taxing structure. The City and its special tax consultant will consider input from the proponent of the development project, but the City will make the final determination.

E. Deposit/Reimbursement Agreement

1. As stipulated earlier in this policy, all City and any consultant costs incurred in evaluating applications requesting the establishment of CFDs shall be paid by the applicant by advance deposit increments, or as otherwise agreed upon in writing by the City.

2. The City and the applicant shall enter into a Deposit/Reimbursement Agreement that stipulates the terms of payment for the costs in conducting proceedings for the formation of the Services Community Facility District.

3. The Director of Finance may draw upon the deposits to pay costs including, but not limited to fees and expenses of any consultants employed in connection with the formation or annexation of the CFD; the costs of publication of notices; appraisal or other studies determined necessary; and reasonable charges for City staff time. 557

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 337

BUDGET AND FISCAL POLICIES
F. Conditions for Project Approval for New Projects

1. Effective upon adoption of this policy, the City shall require all developments that propose an increase in a higher density residential use than what is currently allowed by the General Plan or Zoning Code to form or annex into a CFD pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, for the purposes of providing general municipal services and public safety services, for the purpose of offsetting the cost of providing said services to new residents. Determination of an eligible CFD will be made at the discretion of the City. If an eligible CFD does not exist, a new services CFD formation will be required. It is the City’s goal to provide a consistent level of service to all City residents.

2. The City may choose to enter into a Development Agreement with the applicant, requiring the development to form, or annex into, the Services CFD.

3. If no Development Agreement is entered into between the City and the applicant, a condition of approval will be placed upon the project during the entitlement phase, stipulating that prior to the approval of any map, it will be required that the development form, or annex into, a Services CFD.

4. The City, in conjunction with its financial advisors, shall determine whether the aggregate cost of public services, allowable under statute, shall equal an amount that renders the formation of a District economically both cost-effective and efficient.

5. The City will work, on a case by case basis, to determine the appropriate tax rate to be levied for proposed projects, in conjunction with a Services CFD applying for the development of affordable housing, as defined by the California Health and Safety Code.

X. Interfund Transfers and Loans
A. Establishment of Various Funds
The City has established various funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its own revenue sources, expenditures and fund equity.

B. Transfer Between Funds
Any transfers between funds for operating purposes are set forth in the budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from interfund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources. In summary, interfund transfers result in a change in fund equity; interfund borrowings do not, as the intent is to repay the loan in the near term.

1. At its meeting on May 27, 2025, the City Council authorized a $5 million transfer from Fund 006-Fire Facility Acquisition Fund to Fund 001-General Fund for the acceleration of the City’s Debt/Paydown Strategy. This $5 million will be repaid to F006 over the next five years, or sooner if approved by the City Council.
558

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
338 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
C. Interfund Loans
Interfund loans may be appropriate whenever the loan is expected to be repaid within the immediate future. The most common use of interfund loans is for grant programs, where costs are incurred before drawdowns are initiated and received. Receipt of funds is typically received shortly after the request for funds has been made.

XI. Appropriations Limitation
A. Adopting a Resolution
The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article XIII-B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit.

B. Supporting Documentation Available for Review
The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least fifteen days before Council consideration of a resolution to adopt an appropriations limit. The Council will generally consider this resolution in connection with final approval of the budget.

C. Calculating Appropriations
The City will strive to develop revenue sources, both new and existing, which are considered non- tax proceeds, in calculating its appropriations subject to limitation.

D. Support of Legislation or Initiatives
The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council.

E. Voter Approval to Amend Appropriation Limit
The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are in excess of allowable limits.

XII. Cost Allocation Plan and User Fee Study Updates
The City charges a variety of fees for services provided to residents and businesses, such as inspection, permits, recreational services, use of City property and other services. These fees are charged to recover the costs associated with providing the services.
559

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 339

BUDGET AND FISCAL POLICIES
In accordance with the Government Finance Officers Association (GFOA) and Federal Government Office of Management and Budget (OMB) 2 CFR Part 200 (formerly OMB Circular A-87), the City should calculate the full cost of delivering the aforementioned services and determine the levels of cost recovery and associated fee charges for each service provided
A. Cost Allocation Plan
A cost allocation plan (CAP) is a document that identifies, accumulates, and fairly distributes central service costs to operating departments, programs, or grants. Central service costs generally include expenditures reflected in the City Council, City Manager, City Attorney, City Clerk, Finance, Human Resources departments. The CAP must comply with OMB 2 CFR Part 200 in order to allocate costs to a federal grant and receive reimbursement. The CAP shall be updated in conjunction with the User Fee Study by an independent consultant specializing in such studies.

1. Full Cost Plan –this version of the CAP provides an accurate reflection of the total operational costs of the City but is not intended to comply with 2 CFR Part 200. The Full Cost Plan may be used for determining Citywide overhead to be used in the fully-burdened cost basis for user and regulatory fees, and for determining interfund charges.

2. Federal Plan – this version of the CAP follows the guidance and is compliant with the OMB 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This Plan determines an indirect cost rate intended to recover the costs from external funds such as Federal and/or State grants or agreements.

B. User Fee Study (Cost of Services Study)
A User Fee Study, commonly referred to as a Cost of Services Study, is a document that determines the cost of providing identified services that provide a special benefit to members of the public or business. The Study is used to develop target cost recovery rates to ensure all reasonable costs incurred in providing the services are being recovered or to determine appropriate levels of subsidy.

C. Frequency of Studies
A comprehensive Cost Allocation Plan and User Fee Study is recommended to be updated every three to five years in order to maintain adequate cost recovery and validate subsidy levels.

An annual review of User Fees is recommended as part of the budget process, and applicable inflationary adjustments, if any, shall be applied to the ensuing fiscal year fees.

XIII. Pension Funding
A. Establishment of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust The City contracts with the California Public Employees Retirement System (CalPERS) to provide pension benefits to its employees. The pension is funded with a combination of employer and employee contributions. To mitigate the volatility in the employer contribution rates, the City has established a Section 115 Trust to prefund its pension obligations. Assets from the Trust are restricted for the payment of pension obligations.
560

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
340 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
B. Funding of the Section 115 Irrevocable Trust
The primary benefit of a Section 115 Trust is the flexibility of investment options available to the Trust that cities are prohibited from utilizing. The broader investment options have the ability to generate higher yields and investment earnings, thereby increasing the assets held in trust.

The City established the Section 115 Trust with a one-time contribution of $8 million as seed funding during Fiscal Year 2017-18. Subsequent deposits and withdrawals have been made since the Trust was established to meet the goals of the City’s Debt/Liability Paydown Strategy Policy. By Fiscal Year 2026-27, the City will have effectively paid down the full CalPERS Pension Unfunded Accrued Liability (UAL). Given the annual update in the CalPERS actuarial valuation of the City’s Pension, future UALs are likely to occur. The City shall maintain its Section 115 Trust to accumulate funds to assist in the pay down of future UALs and other eligible pension payments as noted in this Policy.

Effective Fiscal Year 2026-27 and every year thereafter until amended by Council, the City shall fund the Section 115 Trust either through annual one-time deposits or through ongoing, budgeted contributions, until such time as the fund balance in the trust reaches $10 million.

1. Annual/One-Time Deposits
a. During Fiscal Year 2026-27, a one-time deposit of $7 million from the General Fund shall be transferred to the Section 115 Trust.
b. Upon the closing of the annual financials, thirty percent (30%) of the Operating Budget Surplus within the General Fund may be deposited into the Section 115 Trust, The Operating Budget Surplus is defined as the excess amount over the budgeted Revenue over Expenditures calculation.
c. Additional Trust contributions may be programmed through the Annual Operating Budget process each year, as approved by Council.
d. The Director of Finance may exercise the option of depositing the funds in tranches throughout the fiscal year and employ dollar cost averaging to mitigate risk in fluctuating markets.

2. Ongoing, Budgeted Contributions
a. The City shall add 1.25% to the CalPERS Normal Cost Employer Rate through its annual budget process to generate funding to transfer to the Section 115 Trust. This percentage will be re-evaluated each fiscal year as part of the budget process. b. The City shall determine the amount of Health Flex Forfeiture above $150,000 per year and deposit the excess into the Section 115 Trust.

C. Allowable Uses of the Section 115 Irrevocable Trust
Accumulated funds in the Section 115 Irrevocable Trust shall only be used for the payment of CalPERS pension obligations, and will be prioritized as follows:

1. Additional Discretionary Payments (ADP) to reduce the City’s CalPERS Unfunded Accrued Liability (UAL),
561

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 341

BUDGET AND FISCAL POLICIES

2. Annual prepayment of the City’s UAL, as determined by the annual CalPERS Actuarial Valuation Report, to take advantage of the prepayment discount.

3. Annual payment of the City’s “Normal Cost,” as determined by the annual CalPERS Actuarial Valuation Report.

4. Reimbursement of prior pension obligations paid by the City. Reimbursement is limited to pension payments made in the current year plus one year back, as long as there were no Trust disbursements made during this time period.

XIV. Retiree Health Benefit Funding
A. Retiree Health Benefit
The City will provide medical, dental and vision benefits for eligible employees and their spouse upon retirement from the City of Temecula, as defined in the City’s labor agreements.

1. To provide funding for the Retiree Health Benefit, the City joined the California Employer’s Retirement Benefit Trust (CERBT), which is an Internal Revenue Code (IRC) Section 115 trust dedicate to prefunding Other Post-Employment Benefits (OPEB).

B. Actuarial Valuation Reporting
In accordance with Governmental Accounting Standards Board (GASB) Statement No. 75 (Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions), an actuarial valuation report is required of state and local government employers to measure and report their total OPEB liability at least every two years.

1. As a result of the City’s Debt/Liability Paydown Strategy, in 2025 the City achieved “super- funded” status in the CERBT Trust, which was 120% funded due to additional discretionary contributions made to the trust.

C. Funding the CERBT
The Actuarial Valuation Report calculates the anticipated assets and liabilities of the trust, and the resulting actuarially determined contribution (ADC) required to cover the annual service costs of the benefit and the unfunded liability (if any).

1. Annual service costs of providing the retiree benefit is approximately $1.7 million.

2. The City shall utilize the assets in the CERBT to reimburse itself for the service costs of this benefit so long as the CERBT is at least 100% funded, per the latest Actuarial Valuation Report.

3. If the funded status in the CERBT falls below a 100%, the City shall include the annual service costs in the Annual Operating Budget and make additional discretionary contributions over the ensuing two fiscal years to bring the funded status back to 100%. a. Additional discretionary contributions may come from available unassigned General Fund balance, in accordance with Budget Policy III.H.4. 562

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
342 | Annual Operating Budget

BUDGET AND FISCAL POLICIES
XV. Signature Delegation
A. Delegation of City Manager Signature Authority
In accordance with the Budget Resolution Section 1.E-F., the City Manager may authorize expenditures of funds in the amounts up to one-hundred thousand dollars ($100,000). Any expenditures in excess of $100,000 requires City Council action.

With regard to contracts and agreements, the City Manager hereby delegates his signature authority, up to $100,000 to the Assistant City Manager, and up to $60,000 as follows:

1. Temecula Community Service District contracts and agreements may be approved by the Director of Community Services for the following contract types:
a. Entertainment, Performance and Event Agreements

2. Public Works contracts and agreements may be approved by the Deputy City Manager or the Director of Public Works for the following contract types:
a. Maintenance Agreements
b. Minor Construction Agreements
B. Delegation of City Manager Settlement Authority
In accordance with the Budget Resolution Section 1.G., the City Manager, in consultation with the City Attorney, is authorized to settle personal injury and property damage lawsuits and enter into settlement agreements on behalf of the City, Temecula Community Services District, and the Successor Agency to the Temecula Redevelopment Agency where the amount of the settlement does not exceed one-hundred thousand dollars ($100,000).

1. For all Personal Injury, Property, and Employment Claim settlements, the City Manager hereby delegates his signature authority to the Director of Human Resources/Risk Management to negotiate settlements up to $10,000.

XVI. Emergency Appropriation Policy
In the event of an emergency resulting from acts of nature or other unforeseen activity, the City Manager is authorized to appropriate budgetary funds for the emergency purchase of goods and services to address such emergency.

In the event the emergency requires a significant Public Works response, an emergency exemption to the Public Works bidding requirements must be approved by the City Council via an Emergency Exemption Resolution.
563

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 343
City of Temecula
Budget Policy VIII.D. – Criteria for Obligating General Fund Exhibit A
General Fund Debt Obligation Checklist
/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵĚŐĞƚWŽůŝĐLJs///͕͘ƚŚĞŝƚLJǁŝůůŶŽƚŽďůŝŐĂƚĞƚŚĞ'ĞŶĞƌĂů&ƵŶĚƚŽƐĞĐƵƌĞůŽŶŐͲƚĞƌŵĨŝŶĂŶĐŝŶŐƐĞdžĐĞƉƚ ǁŚĞŶĐĞƌƚĂŝŶĐƌŝƚĞƌŝĂŚĂǀĞďĞĞŶŵĞƚ͘WƌŝŽƌƚŽƚŚĞĂƵƚŚŽƌŝnjĂƚŝŽŶŽĨĂŶLJ'ĞŶĞƌĂů&ƵŶĚͲ^ƵƉƉŽƌƚĞĚĞďƚ͕ƚŚĞŝƚLJŽƵŶĐŝůŵƵƐƚ ĂƉƉƌŽǀĞƚŚĞĐƌŝƚĞƌŝĂŶŽƚĞĚŝŶƚŚĞĨŽůůŽǁŝŶŐŚĞĐŬůŝƐƚ͘dŚŝƐŚĞĐŬůŝƐƚƐŚĂůůĂĐĐŽŵƉĂŶLJƚŚĞŝƚLJŽƵŶĐŝůŐĞŶĚĂZĞƉŽƌƚĨŽƌƚŚĞ ƉƌŽƉŽƐĞĚĚĞďƚĨŝŶĂŶĐŝŶŐ͘
^ĞĐƚŝŽŶ/͘Ͳ'ĞŶĞƌĂů&ƵŶĚ&ŝƐĐĂů,ĞĂůƚŚ
ϭͿ /ƐƚŚĞ'ĞŶĞƌĂů&ƵŶĚƐƚƌƵĐƚƵƌĂůůLJďĂůĂŶĐĞĚŽǀĞƌƚŚĞĞŶƐƵŝŶŐĨŝǀĞĨŝƐĐĂůLJĞĂƌƐ͍ ϮͿ /ƐƚŚĞZĞƐĞƌǀĞĨŽƌ
ĐŽŶŽŵŝĐhŶĐĞƌƚĂŝŶƚLJĨƵůůLJĨƵŶĚĞĚ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ
ƵĚŐĞƚWŽůŝĐLJ///͍͘͘
‰zĞƐ‰EŽ
‰zĞƐ‰EŽ
^ĞĐƚŝŽŶ//͘ʹWĞŶƐŝŽŶ&ƵŶĚŝŶŐ^ƚĂƚƵƐ
‰zĞƐ‰EŽ
ϯͿ /ƐƚŚĞŝƚLJ͛ƐĂůW
Z^DŝƐĐĞůůĂŶĞŽƵƐƉĞŶƐŝŽŶϭϬϬйĨƵŶĚĞĚ͕ŝŶĐůƵĚŝŶŐĂƐƐĞƚƐŚĞůĚĂƚĂůW Z^
ĂŶĚŝŶƚŚĞŝƚLJ͛Ɛ^ĞĐƚŝŽŶϭϭϱWĞŶƐŝŽŶdƌƵƐƚ͍
/ĨEŽ͕ƚŚĞŽƵŶĐŝůŵĂLJĐŽŶƐŝĚĞƌŝƐƐƵŝŶŐ'ĞŶĞƌĂů&ƵŶĚĞďƚŝĨƚŚĞĨŽůůŽǁŝŶŐĂƌĞƚƌƵĞ͗ ͘ dŚĞŝƚLJŝƐŝŶĨƵůůĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞĐŽŶƚƌŝďƵƚŝŽŶƐĐŚĞĚƵůĞĂŶĚĨƵŶĚŝŶŐƚĂƌŐĞƚƐĞƐƚĂďůŝƐŚĞĚŝŶƚŚĞ ŝƚLJ͛ƐWĞŶƐŝŽŶ&ƵŶĚŝŶŐWŽůŝĐLJ͕ŝŶĐůƵĚŝŶŐĂŶLJƐƵƉƉůĞŵĞŶƚĂůĐŽŶƚƌŝďƵƚŝŽŶƐƌĞƋƵŝƌĞĚƚŽƌĞƚƵƌŶƚŚĞƉůĂŶƚŽ ϭϬϬйĨƵŶĚĞĚƐƚĂƚƵƐǁŝƚŚŝŶƚŚĞƚŝŵĞůŝŶĞĞƐƚĂďůŝƐŚĞĚƚŚĞƌĞŝŶ͕ĂŶĚ  ‰zĞƐ‰EŽ ͘ dŚĞŽƵŶĐŝůŵĂŬĞƐǁƌŝƚƚĞŶĨŝŶĚŝŶŐƐƚŚĂƚĚĞĨĞƌƌĂůŽĨƚŚĞƉƌŽƉŽƐĞĚĚĞďƚŝƐƐƵĂŶĐĞƵŶƚŝůƉĞŶƐŝŽŶĨƵŶĚŝŶŐƚĂƌŐĞƚƐĂƌĞ ƌĞƐƚŽƌĞĚǁŽƵůĚƌĞƐƵůƚŝŶŐƌĞĂƚĞƌĨŝƐĐĂůŚĂƌŵƚŚĂŶƉƌŽĐĞĞĚŝŶŐǁŝƚŚŝƐƐƵĂŶĐĞ͘ ‰zĞƐ‰EŽ ^ĞĐƚŝŽŶ///͘ʹůƚĞƌŶĂƚŝǀĞ&ŝŶĂŶĐŝŶŐŶĂůLJƐŝƐ
ϰͿ ,ĂƐƚŚĞŝƚLJĐŽŶĚƵĐƚĞĚĂůƚĞƌŶĂƚŝǀĞĨŝŶĂŶĐŝĂůĂŶĂůLJƐŝƐƚŽĞǀĂůƵĂƚĞƉĂLJͲĂƐͲLJŽƵͲŐŽŽƉƚŝŽŶƐ͍‰zĞƐ‰EŽ /ĨzĞƐ͕ƐƚĂƚĞƚŚĞƌĞĂƐŽŶƐĚĞďƚĨŝŶĂŶĐŝŶŐŝƐƚŚĞƉƌĞĨĞƌƌĞĚŽƉƚŝŽŶ͗ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ĞĐƚŝŽŶ/s͘ʹĚĚŝƚŝŽŶĂůƌŝƚĞƌŝĂ
ϱͿ /ƐƚŚĞƉƵƌƉŽƐĞŽĨƚŚĞĚĞďƚƚŽƌĂŝƐĞĐĂƉŝƚĂůĨŽƌ͗‰KŶĞͲƚŝŵĞĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚƐ͕Žƌ‰KŶŐŽŝŶŐŽƉĞƌĂƚŝŽŶƐ͍ ϲͿ ŽĞƐƚŚĞƉƌŽƉŽƐĞĚĂŶŶƵĂůĚĞďƚƐĞƌǀŝĐĞĞdžĐĞĞĚϭϬйŽĨ'ĞŶĞƌĂů&ƵŶĚKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞ͕ĞdžĐůƵĚŝŶŐŽŶĞͲƚŝŵĞ ŝŶƚĞƌĨƵŶĚƚƌĂŶƐĨĞƌƐĂŶĚŝŶĐůƵĚŝŶŐŽƚŚĞƌ'ĞŶĞƌĂů&ƵŶĚĞďƚKďůŝŐĂƚŝŽŶƐ͕ĂƐĚĞƚĞƌŵŝŶĞĚďLJƚŚĞŝƚLJ͛ƐDƵŶŝĐŝƉĂů ĚǀŝƐŽƌ͍‰zĞƐ‰EŽ
ϳͿ tŝůůƚŚĞƉƌŽƉŽƐĞĚĨŝŶĂŶĐŝŶŐĂĚǀĞƌƐĞůLJŝŵƉĂĐƚƚŚĞŝƚLJ͛ƐƌĞĚŝƚZĂƚŝŶŐ͕ĂƐĚĞƚĞƌŵŝŶĞĚďLJƚŚĞŝƚLJ͛ƐDƵŶŝĐŝƉĂů ĚǀŝƐŽƌ͍‰zĞƐ‰EŽ
ϴͿ dŚĞƉƌŽũĞĐƚĞĚƵƐĞĨƵůůŝĨĞŽĨƚŚĞĂƐƐĞƚďĞŝŶŐĨŝŶĂŶĐĞĚƐŚĂůůŶŽƚĞdžĐĞĞĚƚŚĞƚĞƌŵŽĨƚŚĞƉƌŽƉŽƐĞĚĚĞďƚ ŝƐƐƵĂŶĐĞ͗
͘
ƐƚŝŵĂƚĞĚƵƐĞĨƵůůŝĨĞŽĨƚŚĞĂƐƐĞƚďĞŝŶŐĨŝŶĂŶĐĞĚ;ŝŶLJĞĂƌƐͿͺͺͺͺͺͺͺͺͺ ͘ dĞƌŵŽĨƚŚĞƉƌŽƉŽƐĞĚĚĞďƚĨŝŶĂŶĐŝŶŐ;ŝŶLJĞĂƌƐͿͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ 564

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
344 | Annual Operating Budget 565

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 345
Appendices
Appendix A – Personnel
Summary of Changes in Authorized Positions, Personnel and Benefit Costs

SUMMARY OF CHANGES IN AUTHORIZED POSITIONS,

PERSONNEL AND BENEFIT COSTS
Total authorized Full Time Equivalent (FTE) positions equal 202.20 authorized positions, including six authorized/unfunded positions (one Principal Planner in the Community Development department; and two Community Services Managers, one Community Services Superintendent, and two Community Services Supervisors I/II in the Temecula Community Services District).The total reflects no change in the number of positions compared to the prior year.

Total Authorized Positions remains below the peak in 2007-08 by 8.55 positions.

In addition to the Authorized Positions, the City employs six Limited Term positions to support the implementation of the City’s new Human Resources/Payroll software system and to cover long-term leaves of absence. A significant number of part-time, non-benefitted Project employees also are employed to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2026-27, an estimated 88full-time equivalents will be hired as seasonal and part-time support.

Public Safety personnel are provided through contracts with Riverside County and CAL FIRE. A total of 117 Sworn Sheriff’s Deputies, 18 non-sworn Community Service Officers, and three Sheriff Service Officers are included in the Temecula Sheriff’s Office budget, and a total of 79 contract Fire personnel are reflected in the Fire Department budget for FY2026-27.

Employee Salaries
In accordance with the City’s labor agreements, a 3% cost of living adjustment will go into effect July 1, 2026. The salary and benefits contained in the Adopted Budget reflect the anticipated salary adjustments.

Pursuant to Section 47.3 of the MOU and Section 31.3 of the Management Compensation Plan (MCP), a Reclassification Request Process is available to employees whose work has fundamentally changed due to a department reorganization, changes to staffing levels, introduction of new programs or services, and/or reallocations of work and internal reporting relationships. Employees may request an evaluation of their job duties by an independent consultant, to determine the proper job classification for the work performed. 147.25
174.75 180.75 185.75
194.25
208.75 210.75 209.75
197.00 197.00 195.00
160.00 160.00 158.00 158.20 158.20
168.20 171.70 176.45 177.70
190.95 196.45 199.20 199.20 202.20 202.20
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
-

50.00 100.00
150.00
200.00
250.00
General Fund
Revenue
Authorized
WŽƐŝƟŽŶƐ
City of Temecula
ƵƚŚŽƌŝnjĞĚWŽƐŝƟŽŶƐdƌĞŶĚ
2001 - 2026
566

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
346 | Annual Operating Budget

SUMMARY OF CHANGES IN AUTHORIZED POSITIONS,

PERSONNEL AND BENEFIT COSTS
In accordance with the provisions of the MOU and MCP, a total of 20 employees are recommended for reclassification, effective July 1, 2026. The expected fiscal impact of these reclassified positions is $154,702.

Employee Benefits
The City contributes to the California Public Employees Retirement System (CalPERS), a multiple-employer public employee defined benefit pension plan for all authorized employees and temporary employees who work more than 1,000 hours per year, or who have previously been part of CalPERS pension program. CalPERS provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions and all other requirements are established by the State statute and City ordinance, with the City providing the following benefits:
x Tier 1: 2.7% @ 55 formula for employees hired prior to September 11, 2011 x Tier 2: 2.0% @ 60 formula for employees hired after September 11, 2011 x Tier 3: 2.0% @ 62 for employees, new to the CalPERS system, hired after January 1, 2013, in accordance with the Public Employees’ Pension Reform Act of 2013 (PEPRA) Employees pay 3% of their annual salary for their CalPERS Retirement benefit, and the City pays a contribution on behalf of authorized employees; (5% for Tier 1 and 4% for Tier 2 employees), in addition to the required actuarially determined employer contribution rate. The annual cost for the CalPERS pension for eligible personnel for Fiscal Year 2026-27 is budgeted to be $4,478,238.

The City provides a Section 125 Flexible Benefits Plan for all authorized employees. The total monthly cafeteria allotment is $1,200 from which employees can purchase health, dental, life, and disability insurance benefits. Also included in this Plan are options for medical and dependent care reimbursement, deferred compensation, or a “cash back” option. The cafeteria allotment is also provided to eligible retirees as part of the City’s retiree health plan.

As part of the MOU and MCP agreements, in addition to the cafeteria allotment, the City provides employees a $1,000 per month contribution to a Health Flex Contribution account to be used for medical, dental or vision premiums, or directed to a Healthcare Flexible Spending Account. Any unused amount not utilized for these purposes will be forfeited.

The annual cost of the cafeteria benefit plan for Fiscal Year 2026-27 is estimated to be $5,280,000. 567

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 347
Schedule of Authorized Positions

SCHEDULE OF AUTHORIZED POSITIONS
As of July 1, 2026
FY2025-26
Number of
Positions
Salary Schedule
Bargaining
Unit***
Exempt/Non-
ExemptMonthly Salary
Minimum Maximum

CITY COUNCIL
Councilmember 5.0 1,900 ϭ,ϵ00 N/A E
City Council Subtotal:5.0

CITY MANAGER
Assistant City Manager 1.0 19,711 27,855 Exec E
Assistant to the City Manager 1.0 13,373 18,893 MCP E
City Manager 1.0 N/A 30,918 Contract E
Deputy City Manager 1.0 17,923 25,324 Exec E
Executive Assistant I/II 1.0 6,375 9,464 MCP E
Senior Office Specialist 1.0 5,105 6,535 Rep NE
City Manager Subtotal:6.0

OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT
Administrative Assistant 1.0 5,496 7,037 Rep NE
Economic Development Manager 1.0 10,974 15,508 MCP E
Multimedia Coordinator 1.0 7,212 9,233 Rep NE
Senior Management Analyst 2.0 8,365 11,820 MCP E
Office of Public Information & Economic Development Subtotal:5.0

CITY CLERK
Assistant City Clerk 1.0 9,700 13,707 MCP E
Director of Legislative Affairs/City Clerk 1.0 15,895 22,459 Exec E Management Assistant 1.0 5,919 7,576 Rep NE
Records Manager 1.0 7,393 10,449 MCP E
Records Technician 1.0 4,293 5,496 Rep NE
City Clerk Subtotal:5.0

HUMAN RESOURCES
Assistant Director of HR/Risk Management 1.0 12,418 17,545 MCP E Director of HR/Risk Management 1.0 15,895 22,459 Exec E Human Resources Supervisor (Confidential) 1.0 7,212 10,190 MCP NE Management Analyst 1.0 7,212 10,190 MCP E
Management Assistant (Confidential) 1.0 5,919 8,365 MCP NE Risk Manager 1.0 10,709 15,129 MCP E
Senior Management Analyst (underfill as Management Analyst) 1.0 8,365 11,820 MCP E Human Resources Subtotal:7.0
568

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
348 | Annual Operating Budget

SCHEDULE OF AUTHORIZED POSITIONS
As of July 1, 2026
FY2025-26
Number of
Positions
Salary Schedule
Bargaining
Unit***
Exempt/Non-
ExemptMonthly Salary
Minimum Maximum

FINANCE
Accountant I/II 2.0 7,393 9,942 Rep NE
Accounting Assistant (Cashier & AP) 3.0 5,231 6,698 Rep NE Assistant Director of Finance 1.0 13,373 18,893 MCP E
Director of Finance 1.0 16,293 23,022 Exec E
Finance Manager 1.0 9,464 13,373 MCP E
Fiscal Services Manager 2.0 10,974 15,508 MCP E
Management Analyst 1.0 7,212 10,190 MCP E
Purchasing Manager 1.0 8,161 11,530 MCP E
Senior Accountant (Confidential) 1.0 8,575 12,116 MCP NE Senior Accounting Technician 1.0 6,698 8,575 Rep NE
Senior Accounting Technician - Payroll (Confidential) 2.0 6,698 9,464 MCP NE Finance Subtotal:16.0

INFORMATION TECHNOLOGY
Assistant Director Information Technology/Support Svcs 1.0 13,045 18,434 MCP E Director of Information Technology/Support Svcs 1.0 15,895 22,459 Exec E Information Technology Manager 1.0 11,820 16,699 MCP E
Information Technology Specialist l/II (Confidential) 2.0 6,375 9,464 MCP NE Information Technology Supervisor (Confidential) 4.0 8,161 11,530 MCP NE Information Technology Supervisor (Multimedia Services) (Confidential) 1.0 8,161 11,530 MCP NE Information Technology Technician I/II 0.5 5,496 8,161 MCP NE Management Analyst 1.0 7,212 10,190 MCP E
Senior Administrative Assistant 1.0 6,068 7,769 Rep NE
Senior Information Technology Specialist (Confidential) 2.0 7,393 10,449 MCP NE Support Services
Information Technology Technician I/II 0.5 5,496 8,161 MCP NE Office Specialist I/II - AM 0.6 4,401 5,919 Rep NE
Office Specialist I/II - PM 0.6 4,401 5,919 Rep NE
Support Services Supervisor 1.0 5,105 6,535 Rep NE
Information Technology Subtotal:17.2

COMMUNITY DEVELOPMENT
Assistant Director of Community Development 1.0 13,373 18,893 MCP E Director of Community Development 1.0 16,293 23,022 Exec E Management Assistant 1.0 5,919 7,576 Rep NE
Senior Administrative Assistant 1.0 6,068 7,769 Rep NE
Planning
Assistant Planner 1.0 6,698 8,575 Rep NE
569

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 349

SCHEDULE OF AUTHORIZED POSITIONS
As of July 1, 2026
FY2025-26
Number of
Positions
Salary Schedule
Bargaining
Unit***
Exempt/Non-
ExemptMonthly Salary
Minimum Maximum
Associate Planner I (underfill as Planning Technician) 1.0 7,769 9,942 Rep NE Associate Planner I/II 1.0 7,769 10,974 Rep NE
Community Development Technician II 2.0 6,535 8,365 Rep NE Community Development Technician II (underfill as Comm Dev Tech I) 1.0 6,535 8,365 Rep NE Planning Manager 1.0 11,530 16,293 MCP E
Principal Management Analyst 1.0 9,233 13,045 MCP E
Principal Planner (underfill as Associate Planner I) 1.0 10,449 14,759 MCP E Senior Community Development Technician 2.0 7,212 9,233 Rep NE Senior Management Analyst 0.1 8,365 11,820 MCP E
Senior Office Specialist 1.0 5,105 6,535 Rep NE
Senior Planner 2.0 9,464 13,373 MCP E
Building and Safety/Code Enforcement
Building Inspector I 1.0 6,864 8,790 Rep NE
Building Inspector II 2.0 7,576 9,700 Rep NE
Building Official 1.0 12,116 17,120 MCP E
Code Enforcement Manager 1.0 8,575 12,116 MCP E
Code Enforcement Officer I 2.0 5,775 7,393 Rep NE
Code Enforcement Officer II 1.0 6,375 8,161 Rep NE
Plan Checker 1.0 9,233 11,820 Rep NE
Senior Administrative Assistant 2.0 6,068 7,769 Rep NE
Senior Building Inspector 2.0 8,365 10,709 Rep NE
Senior Code Enforcement Officer (underfill as Code Enforcement Officer II) 1.0 7,037 9,006 Rep NE Senior Management Analyst 0.9 8,365 11,820 MCP E
Community Development Subtotal:33.0

PUBLIC WORKS
Assistant Director of Public Works 1.0 14,401 20,348 MCP E Director of Public Works 1.0 16,293 23,022 Exec E
Program Manager 1.0 9,233 13,045 MCP E
Senior Administrative Assistant 1.0 6,068 7,769 Rep NE
Senior Management Analyst 1.0 8,365 11,820 MCP E
CIP Administration
Assistant Engineer I/II 1.0 7,393 9,942 Rep NE
Associate Engineer I 2.0 8,575 10,974 Rep E
Associate Engineer II 2.0 9,464 12,116 Rep E
Principal Civil Engineer 2.0 12,418 17,545 MCP E
Senior Civil Engineer 1.0 11,251 15,895 MCP E
Senior Public Works Inspector 2.0 8,161 10,449 Rep NE
Senior Public Works Inspector (underfill as Public Works Inspector I) 1.0 8,161 10,449 Rep NE Supervising Public Works Inspector 1.0 9,006 11,530 Rep NE 570

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
350 | Annual Operating Budget

SCHEDULE OF AUTHORIZED POSITIONS
As of July 1, 2026
FY2025-26
Number of
Positions
Salary Schedule
Bargaining
Unit***
Exempt/Non-
ExemptMonthly Salary
Minimum Maximum
Land Development/NPDES
Associate Civil Engineer 1.0 9,942 12,728 Rep E
Associate Civil Engineer (underfill as Associate Engineer I) 1.0 9,942 12,728 Rep E Associate Engineer II 2.0 9,464 12,116 Rep E
Management Assistant (underfill as Senior Office Specialist) 1.0 5,919 7,576 Rep NE Senior Management Analyst (underfill as Management Analyst) 1.0 8,365 11,820 MCP E Senior Office Specialist 1.0 5,105 6,535 Rep NE
Senior Public Works Inspector 1.0 8,161 10,449 Rep NE
Traffic
Associate Civil Engineer 1.0 9,942 12,728 Rep E
Principal Civil Engineer 1.0 12,418 17,545 MCP E
Senior Signal Technician 2.0 8,161 10,449 Rep NE
Signal Technician I/II 1.0 7,037 9,464 Rep NE
Maintenance (Streets, Facilities, Parks)
Custodian Il - Facilities 2.0 3,987 5,105 Rep NE
Field Supervisor - Trades 1.0 7,961 10,190 Rep NE
Landscape Inspector ll 1.0 6,698 8,575 Rep NE
Lead Maintenance Worker - Electrician 1.0 7,212 9,233 Rep NE Lead Maintenance Worker - Facilities 1.0 7,212 9,233 Rep NE Lead Maintenance Worker - HVAC 1.0 7,212 9,233 Rep NE
Lead Maintenance Worker - Parks 2.0 5,775 7,393 Rep NE
Lead Maintenance Worker - Streets (underfill as Maintenance Worker II) 3.0 5,775 7,393 Rep NE Lead Maintenance Worker - Trades 1.0 7,212 9,233 Rep NE Maintenance Manager 1.0 12,116 17,120 MCP E
Maintenance Superintendent 3.0 10,974 15,508 MCP E
Maintenance Worker I - Parks 1.0 4,741 6,068 Rep NE
Maintenance Worker I - Streets 5.0 4,741 6,068 Rep NE
Maintenance Worker Il - Facilities 2.0 6,221 7,961 Rep NE Maintenance Worker II - Parks 1.0 5,231 6,698 Rep NE
Maintenance Worker II - Streets 2.0 5,231 6,698 Rep NE
Parks & Trails Specialist II 3.0 6,375 8,161 Rep NE
Senior Landscape Inspector 1.0 7,393 9,464 Rep NE
Senior Management Analyst 1.0 8,365 11,820 MCP E
Senior Office Specialist 1.0 5,105 6,535 Rep NE
Public Works Subtotal:64.0
FIRE
Community Development Technician II 2.0 6,535 8,365 Rep NE Fire Inspector II 1.0 8,790 11,251 Rep NE
Office Specialist I/II 1.0 4,401 5,919 Rep NE
571

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 351

SCHEDULE OF AUTHORIZED POSITIONS
As of July 1, 2026
FY2025-26
Number of
Positions
Salary Schedule
Bargaining
Unit***
Exempt/Non-
ExemptMonthly Salary
Minimum Maximum
Senior Management Analyst 1.0 8,365 11,820 MCP E
Emergency Management
Emergency Manager 1.0 8,790 12,418 MCP E
Fire Subtotal:6.0

COMMUNITY SERVICES
Assistant Director of Community Services 1.0 13,045 18,434 MCP E Community Services Coordinator I/II 6.0 5,919 7,961 Rep NE Community Services Manager 4.0 10,709 15,129 MCP E
Community Services Specialist I/II 1.0 5,105 6,864 Rep NE Community Services Superintendent 3.0 11,820 16,699 MCP E Community Services Supervisor I/II 11.0 6,864 9,233 Rep NE Director of Community Services 1.0 15,895 22,459 Exec E Management Assistant 1.0 5,919 7,576 Rep NE
Multimedia Coordinator 2.0 7,212 9,233 Rep NE
Theater Technical Coordinator I/II 1.0 5,919 7,961 Rep NE Theater Technical Coordinator I/II (underfill as Theater Technical Specialist II) 1.0 5,919 7,961 Rep NE Community Services Subtotal:32.0
Total By Department Positions ** Bargaining Units:

Rep = Represented
MCP = Management/Confidential
Exec = Executive
City Council 5.0
City Manager 6.0
Economic Development 5.0
City Clerk 5.0
Human Resources 7.0
Finance 16.0
Information Technology 17.2
Community Development 33.0
Public Works 64.0
Fire 6.0
Community Services 32.0
Total Authorized/Funded Positions:196.2
Total of Authorized/Unfunded Positions:6.0
Total Authorized Positions:202.2
572

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
352 | Annual Operating Budget

SCHEDULE OF AUTHORIZED POSITIONS
As of July 1, 2026
FY2025-26
Number of
Positions
Salary Schedule
Bargaining
Unit***
Exempt/Non-
ExemptMonthly Salary
Minimum Maximum
Authorized/Unfunded positions:

Community Development - Planning
Principal Planner 1.0 10,449 14,759 MCP E
Community Services
Community Services Manager 2.0 10,709 15,129 MCP E
Community Services Superintendent 1.0 11,820 16,699 MCP E Community Services Supervisor I/II 2.0 6,864 9,233 Rep NE Limited Term Assignment Positions:

COMMUNITY DEVELOPMENT
Planning Technician 1.0 6,068 7,769 Rep NE

COMMUNITY SERVICES
Management Assistant 1.0 5,919 7,576 Rep NE

HUMAN RESOURCES
Administrative Assistant (Confidential) 1.0 5,496 7,769 MCP NE Human Resources Technician I/II 1.0 5,637 8,365 MCP NE
Senior Management Analyst 1.0 8,365 11,820 MCP E

INFORMATION TECHNOLOGY
Office Specialist I/II - PM 1.0 4,401 5,919 Rep NE
573

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 353
Schedule of Changes in Allocated Positions

SCHEDULE OF CHANGES IN ALLOCATED POSITIONS
s
Adopted
2024-25
Unfunded
2024-25 Changes
Current
2025-26
Unfunded
2025-26 Changes
Proposed
2026-27
Unfunded
2026-27

GENERAL FUND

CITY COUNCIL
Council Members 5.00 - - 5.00 - - 5.00 -

CITY MANAGER
Assistant City Manager 1.00 - - 1.00 - - 1.00 -
Assistant to the City Manager 0.50 - - 0.50 - - 0.50 -
City Manager 1.00 - - 1.00 - - 1.00 -
Deputy City Manager -- 1.00 1.00 - - 1.00 -
Executive Assistant 1.00 - - 1.00 - (1.00) - -
Executive Assistant II - - - - - 1.00 1.00 -
Senior Office Specialist 1.00 - - 1.00 - - 1.00 -

4.50 - 1.00 5.50 - - 5.50 -

OFFICE OF PUBLIC INFORMATION & ECONOMIC DEVELOPMENT
Administrative Assistant 1.00 - - 1.00 - - 1.00 -
Assistant to the City Manager 0.50 - - 0.50 - - 0.50 -
Economic Development Manager 1.00 - - 1.00 - - 1.00 -
Management Analyst 1.00 - (1.00) - - - - -
Multimedia Coordinator - 1.00 1.00 - - 1.00 -
Multimedia Specialist II 1.00 - (1.00) - - - - -
Senior Management Analyst 1.00 - 1.00 2.00 - - 2.00 -

5.50 - - 5.50 - - 5.50 -

EMERGENCY MANAGEMENT
Emergency Manager - - 1.00 1.00 - - 1.00 -
Senior Management Analyst 1.00 - (1.00) - - - - -

1.00 - - 1.00 - - 1.00 -

CITY CLERK
Assistant City Clerk - - - - - 1.00 1.00 -
Deputy City Clerk 1.00 - - 1.00 - (1.00) - -
Director of Legislative Affairs/City Clerk 1.00 - - 1.00 - - 1.00 - Management Assistant 1.00 - - 1.00 - - 1.00 -
Records Manager 1.00 - - 1.00 - - 1.00 -
Records Technician 1.00 - - 1.00 - - 1.00 -

5.00 - - 5.00 - - 5.00 -

FINANCE
Accountant I 1.00 - 1.00 2.00 - (1.00) 1.00 -
Accountant II - - - - - 1.00 1.00 -
Accounting Assistant 1.00 - - 1.00 - - 1.00 -
Accounting Assistant - Cashier 2.00 - - 2.00 - - 2.00 - Accounting Technician I/II 1.00 - - 1.00 - (1.00) - -
Assistant Director of Finance 1.00 - - 1.00 - - 1.00 -
Director of Finance 0.96 - - 0.96 - - 0.96 -
Finance Manager 1.00 - - 1.00 - - 1.00 -
Fiscal Services Manager 1.86 - - 1.86 - - 1.86 -
Management Analyst 2.00 - - 2.00 - (1.00) 1.00 -
Purchasing Manager - - - - - 1.00 1.00 -
Senior Accountant (Confidential) 1.00 - - 1.00 - - 1.00 - Senior Accounting Technician 1.00 - - 1.00 - - 1.00 -
574

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
354 | Annual Operating Budget

SCHEDULE OF CHANGES IN ALLOCATED POSITIONS
s
Adopted
2024-25
Unfunded
2024-25 Changes
Current
2025-26
Unfunded
2025-26 Changes
Proposed
2026-27
Unfunded
2026-27
Senior Accounting Technician (Confidential) 1.00 - - 1.00 - 1.00 2.00 -

14.82 - 1.00 15.82 - - 15.82 -

HUMAN RESOURCES
Assistant Director of HR/Risk Management -- 1.00 1.00 - (0.50) 0.50 - Director of HR/Risk Management 0.50 - - 0.50 - 0.50 1.00 - Human Resources Technician II 2.00 - (2.00) - - - - -
Human Resources Supervisor - - 1.00 1.00 - - 1.00 -
Management Analyst - - 1.00 1.00 - 0.10 1.10 -
Management Assistant (Confidential) 0.90 - 0.20 1.10 - (0.10) 1.00 - Risk Manager - - - - - 0.10 0.10 -
Senior Management Analyst 2.10 - (2.00) 0.10 - (0.10) - -

5.50 - (0.80) 4.70 - - 4.70 -

COMMUNITY DEVELOPMENT - PLANNING
Asst. Director of Community Development 0.65 - - 0.65 - (0.30) 0.35 - Assistant Planner 1.00 - - 1.00 - - 1.00 -
Associate Planner I 1.00 - - 1.00 - - 1.00 -
Associate Planner II 1.00 - - 1.00 - - 1.00 -
Community Development Technician I 0.30 - - 0.30 - (0.20) 0.10 - Community Development Technician II --- -- 0.20 0.20 -
Deputy City Manager 0.55 - (0.55) --- --
Directory of Community Development -- 0.65 0.65 - - 0.65 - Management Assistant --- -- 0.35 0.35 -
Planning Manager 1.00 - - 1.00 - - 1.00 -
Planning Technician 2.00 - (1.00) 1.00 - (0.10) 0.90 -
Principal Management Analyst 0.35 - 0.20 0.55 - (0.35) 0.20 - Principal Planner -0.65 - -0.65 - -0.65
Senior Administrative Assistant 0.83 - - 0.83 - - 0.83 - Senior Community Development Technician 0.20 - - 0.20 - - 0.20 - Senior Management Analyst 0.30 - (0.20) 0.10 - - 0.10 - Senior Office Specialist 1.00 - - 1.00 - - 1.00 -
Senior Planner 1.00 - - 1.00 - 1.00 2.00 -

11.18 0.65 (0.90) 10.28 0.65 0.60 10.88 0.65

COMMUNITY DEVELOPMENT - BUILDING & SAFETY
Administrative Assistant 2.00 - (2.00) --- --
Asst. Director of Community Development 0.25 - - 0.25 - 0.20 0.45 - Building Inspector I 1.00 - - 1.00 - - 1.00 -
Building Inspector II 2.00 - - 2.00 - - 2.00 -
Building Official 1.00 - - 1.00 - - 1.00 -
Code Enforcement Manager -- 1.00 1.00 - - 1.00 -
Code Enforcement Officer I 1.00 - - 1.00 - 1.00 2.00 -
Code Enforcement Officer II 2.00 - - 2.00 - - 2.00 -
Community Development Technician I 2.70 - - 2.70 - (1.80) 0.90 - Community Development Technician II --- -- 1.80 1.80 -
Deputy City Manager 0.25 - (0.25) --- --
Director of Community Development -- 0.25 0.25 - - 0.25 - Field Supervisor Code Enforcement 0.95 - - 0.95 - (0.95) -- Management Assistant --- -- 0.45 0.45 -
Plan Checker 1.00 - - 1.00 - - 1.00 -
Principal Management Analyst 0.45 - - 0.45 - (0.45) --
575

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 355

SCHEDULE OF CHANGES IN ALLOCATED POSITIONS
s
Adopted
2024-25
Unfunded
2024-25 Changes
Current
2025-26
Unfunded
2025-26 Changes
Proposed
2026-27
Unfunded
2026-27
Senior Administrative Assistant 0.15 - 2.00 2.15 - - 2.15 - Senior Building Inspector 2.00 - - 2.00 - - 2.00 -
Senior Code Enforcement Officer 1.00 - (1.00) --- --
Senior Community Development Technician 1.80 - - 1.80 - - 1.80 - Senior Management Analyst 0.90 - - 0.90 - - 0.90 -

20.45 - - 20.45 - 0.25 20.70 -

PUBLIC WORKS - LAND DEVELOPMENT
Assistant Engineer II 1.00 - (1.00) --- --
Asst. Director of Public Works 1.00 - (1.00) --- --
Associate Civil Engineer 1.00 - - 1.00 - - 1.00 -
Associate Engineer I -- 1.00 1.00 - - 1.00 -
Associate Engineer II 1.00 - 1.00 2.00 - - 2.00 -
Director of Public Works 0.15 - - 0.15 - - 0.15 -
Engineering Tech I 1.00 - - 1.00 - (1.00) --
Management Analyst 1.00 - - 1.00 - - 1.00 -
Principal Civil Engineer --- -- 1.00 1.00 -
Principal Management Analyst 0.10 - (0.10) --- --
Public Works Inspector Il 0.90 - - 0.90 - - 0.90 -
Senior Administrative Assistant 0.20 - - 0.20 - - 0.20 - Senior Civil Engineer --- -- 1.00 1.00 -
Senior Management Analyst --- -- 0.10 0.10 -
Senior Office Specialist 1.00 - (0.40) 0.60 - - 0.60 -
Senior Public Works Inspector 0.75 - - 0.75 - - 0.75 -

9.10 - (0.50) 8.60 - 1.10 9.70 -

PUBLIC WORKS
Associate Civil Engineer 1.00 - - 1.00 - - 1.00 -
Custodian II 0.20 - - 0.20 - (0.10) 0.10 -
Director of Public Works 0.40 - - 0.40 - - 0.40 -
Field Supervisor - Trades 0.15 - (0.15) -- 0.10 0.10 -
Landscape Inspector II 0.20 - - 0.20 - - 0.20 -
Lead Maintenance Worker 3.00 - (3.00) --- --
Lead Maintenance Worker-Electrician 0.10 - - 0.10 - (0.10) -- Lead Maintenance Worker-HVAC 0.05 - - 0.05 - - 0.05 -
Maintenance Manager 0.85 - - 0.85 - - 0.85 -
Maintenance Superintendent 0.10 - - 0.10 - - 0.10 -
Maintenance Superintendent-Streets 1.00 - - 1.00 - - 1.00 - Maintenance Worker I 7.00 - - 7.00 - (2.00) 5.00 -
Maintenance Worker II -- 3.00 3.00 - 2.00 5.00 -
Management Analyst -- 0.35 0.35 - (0.35) --
Management Assistant 0.35 - (0.35) --- --
Office Specialist II - - 1.00 1.00 - (1.00) - -
Principal Civil Engineer - - 1.00 1.00 - - 1.00 -
Principal Management Analyst 0.35 - (0.35) --- --
Program Manager 1.00 - - 1.00 - - 1.00 -
Public Works Inspector II 0.10 - - 0.10 - - 0.10 -
Senior Administrative Assistant 0.20 - - 0.20 - - 0.20 - Senior Civil Engineer 1.00 - (1.00) --- --
Senior Landscape Inspector 0.20 - - 0.20 - - 0.20 -
Senior Management Analyst --- -- 0.75 0.75 -
576

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
356 | Annual Operating Budget

SCHEDULE OF CHANGES IN ALLOCATED POSITIONS
s
Adopted
2024-25
Unfunded
2024-25 Changes
Current
2025-26
Unfunded
2025-26 Changes
Proposed
2026-27
Unfunded
2026-27
Senior Office Specialist 1.00 - (0.60) 0.40 - 1.90 2.30 - Senior Public Works Inspector 0.25 - - 0.25 - - 0.25 -
Senior Signal Technician 2.00 - (0.80) 1.20 - - 1.20 -
Signal Technician I -- 0.60 0.60 - - 0.60 -

20.50 - (0.30) 20.20 - 1.20 21.40 -

PUBLIC WORKS - CIP ADMINISTRATION
Asst. Director of Public Works -- 1.00 1.00 - - 1.00 -
Assistant Engineer I 1.00 - (1.00) --- --
Assistant Engineer II 2.00 - - 2.00 - (1.00) 1.00 -
Associate Civil Engineer 1.00 - - 1.00 - (1.00) --
Associate Engineer I -- 1.00 1.00 - 1.00 2.00 -
Associate Engineer II 3.00 - (1.00) 2.00 - - 2.00 -
Director of Public Works 0.25 - - 0.25 - - 0.25 -
Engineering Manager 1.00 - (1.00) --- --
Principal Civil Engineer 1.00 - 1.00 2.00 - (1.00) 1.00 - Principal Management Analyst 0.45 - (0.45) --- --
Public Works Inspector I --- -- 1.00 1.00 -
Senior Administrative Assistant 0.60 - - 0.60 - - 0.60 - Senior Civil Engineer 1.00 - - 1.00 - (1.00) --
Senior Management Analyst --- -- 0.45 0.45 -
Senior Public Works Inspector 2.00 - - 2.00 - (1.00) 1.00 - Supervising Public Works Inspector 1.00 - - 1.00 - - 1.00 -

14.30 - (0.45) 13.85 - (2.55) 11.30 -

PARKS MAINTENANCE
Director of Public Works 0.10 - - 0.10 - - 0.10 -
Landscape Inspector II 0.50 - 0.05 0.55 - - 0.55 -
Lead Maintenance Worker 2.00 - - 2.00 - - 2.00 -
Lead Maintenance Worker-Electrician 0.10 - - 0.10 - (0.10) -- Maintenance Superintendent 0.95 - - 0.95 - - 0.95 -
Maintenance Worker I 1.00 - - 1.00 - - 1.00 -
Maintenance Worker II 1.00 - - 1.00 - - 1.00 -
Management Assistant 0.25 - (0.25) --- --
Management Analyst -- 0.25 0.25 - (0.25) --
Parks & Trails Specialist I* 2.00 - (2.00) --- --
Parks & Trails Specialist II* 1.00 - 2.00 3.00 - - 3.00 - Senior Landscape Inspector 0.50 - - 0.50 - - 0.50 -
Senior Management Analyst --- -- 0.20 0.20 -

9.40 - 0.05 9.45 - (0.15) 9.30 -
FIRE (Non-Contract Employees)
Community Development Technician I-Fire 1.00 - - 1.00 - (1.00) -- Community Development Technician II-Fire 1.00 - - 1.00 - 1.00 2.00 - Fire Inspector II 1.00 - - 1.00 - - 1.00 -
Management Analyst 1.00 - - 1.00 - (1.00) --
Office Specialist I -- 1.00 1.00 - - 1.00 -
Senior Management Analyst --- -- 1.00 1.00 -

4.00 - 1.00 5.00 - - 5.00 -
General Fund Total 130.25 0.65 0.10 130.35 0.65 0.45 130.80 0.65 577

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 357

SCHEDULE OF CHANGES IN ALLOCATED POSITIONS
s
Adopted
2024-25
Unfunded
2024-25 Changes
Current
2025-26
Unfunded
2025-26 Changes
Proposed
2026-27
Unfunded
2026-27

SPECIAL REVENUE FUNDS
CDBG
Management Assistant -----0.20 0.20 -
Principal Management Analyst 0.20 --0.20 --0.20 -

0.20 --0.20 -0.20 0.40 -

AFFORDABLE HOUSING
Asst. Director of Community Development 0.10 --0.10 -(0.10) -- Deputy City Manager 0.20 -(0.20) -----
Director of Community Development --0.10 0.10
Planning Technician -----0.10 0.10 -
Principal Management Analyst --0.80 0.80 --0.80 -
Principal Planner -0.35 --0.35 --0.35
Senior Administrative Assistant 0.02 --0.02 --0.02 -
Senior Management Analyst 0.80 -(0.80) -----

1.12 0.35 (0.10) 1.02 0.35 - 1.02 0.35
Special Revenue Funds Total 1.32 0.35 (0.10)1.22 0.35 0.20 1.42 0.35

COMMUNITY FACILITY DISTRICTS --

FINANCE
Director of Finance 0.04 --0.04 --0.04 -
Fiscal Services Manager 0.14 --0.14 --0.14 -

0.18 --0.18 --0.18 -

COMMUNITY SERVICES --

PARKS AND RECREATION
Assistant Director of Community Services 1.00 --1.00 --1.00 - Community Services Coordinator I 2.00 -1.00 3.00 -1.00 4.00 - Community Services Coordinator II 3.00 --3.00 -(1.00) 2.00 - Community Services Manager 9.00 -(1.00) 8.00 -(4.00) 4.00 2.00 Community Services Specialist I/II 1.00 --1.00 --1.00 - Community Services Superintendent 1.00 --1.00 -2.00 3.00 1.00 Community Services Supervisor I 5.00 -2.00 7.00 -(2.00) 5.00 - Community Services Supervisor II 6.00 --6.00 --6.00 -
Community Services Supervisor I/II 1.00 -(1.00) - -- - 2.00 Custodian II 1.10 --1.10 -(0.30) 0.80 -
Director of Community Services 1.00 --1.00 --1.00 -
Field Supervisor-Code Enforcement 0.05 --0.05 -(0.05) - - Field Supervisor-Trades 0.50 -(0.40) 0.10 -0.30 0.40 -
Landscape Inspector II 0.20 --0.20 --0.20 -
Lead Maintenance Worker-Electrician 0.40 --0.40 -0.10 0.50 - Lead Maintenance Worker-Facilities 0.10 -(0.10) - -0.50 0.50 - Lead Maintenance Worker-HVAC 0.50 --0.50 --0.50 -
Lead Maintenance Worker-Trades - --- -0.55 0.55 -
Maintenance Superintendent 0.30 --0.30 --0.30 -
Maintenance Worker I - Facilities 0.45 --0.45 -(0.45) - - Maintenance Worker II - Facilities 1.50 -0.45 1.95 -(0.80) 1.15 - Management Assistant 1.00 --1.00 --1.00 -
Multimedia Coordinator 2.00 --2.00 --2.00 -
Office Specialist II 1.00 -(1.00) - --- -
578

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
358 | Annual Operating Budget

SCHEDULE OF CHANGES IN ALLOCATED POSITIONS
s
Adopted
2024-25
Unfunded
2024-25 Changes
Current
2025-26
Unfunded
2025-26 Changes
Proposed
2026-27
Unfunded
2026-27
Principal Management Analyst 1.00 --1.00 -(1.00) - -
Senior Landscape Inspector 0.20 --0.20 --0.20 -
Theater Technical Coordinator I 1.00 --1.00 --1.00 -
Theater Technical Specialist II 1.00 --1.00 --1.00 -

42.30 -(0.05) 42.25 -(5.15) 37.10 5.00

SERVICE LEVEL B
Senior Signal Technician --0.80 0.80 --0.80 -
Signal Technician I --0.40 0.40 --0.40 -
--1.20 1.20 --1.20 -

SERVICE LEVEL D
Maintenance Manager 0.15 --0.15 --0.15 -
Management Analyst --0.20 0.20 -(0.20) - -
Management Assistant 0.20 -(0.20) ---- -
Principal Management Analyst 0.05 -(0.05) ---- -
Senior Management Analyst -----0.25 0.25 -
Senior Office Specialist -----0.10 0.10 -

0.40 -(0.05) 0.35 -0.15 0.50 -

SERVICE LEVEL L
Maintenance Superintendent 0.05 --0.05 --0.05 -

0.05 --0.05 --0.05 -

LIBRARY
Custodian II 0.30 --0.30 --0.30 -
Field Supervisor-Trades 0.10 --0.10 --0.10 -
Landscape Inspector II 0.10 -(0.05) 0.05 --0.05 -
Lead Maintenance Worker-Electrician 0.15 - (0.05) 0.10 - - 0.10 - Lead Maintenance Worker-HVAC 0.15 - (0.05) 0.10 - - 0.10 - Lead Maintenance Worker-Trades - - - - - 0.05 0.05 -
Maintenance Superintendent 0.10 --0.10 --0.10 -
Maintenance Worker I - Facilities 0.25 --0.25 -(0.25) - - Maintenance Worker II - Facilities 0.35 -0.25 0.60 -(0.10) 0.50 - Senior Landscape Inspector 0.10 --0.10 --0.10 -

1.60 -0.10 1.70 -(0.30) 1.40 -
Community Services Total 44.35 -1.20 45.55 -(5.30)40.25 5.00

INTERNAL SERVICE FUNDS --

INSURANCE
Assistant Director of HR/Risk Management -----0.25 0.25 - Director of HR/Risk Management 0.25 --0.25 -(0.25) --
Management Analyst -----0.45 0.45 -
Management Assistant (Confidential) 0.10 -0.35 0.45 -(0.45) -- Risk Manager -----0.45 0.45 -
Senior Management Analyst 0.45 --0.45 -(0.45) --

0.80 -0.35 1.15 --1.15 -

WORKERS' COMPENSATION --
Assistant Director of HR/Risk Management -----0.25 0.25 - Director of HR/Risk Management 0.25 --0.25 -(0.25) --
Management Analyst ----0.45 0.45 -
Management Assistant (Confidential) -0.45 0.45 -(0.45) -- 579

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 359

SCHEDULE OF CHANGES IN ALLOCATED POSITIONS
s
Adopted
2024-25
Unfunded
2024-25 Changes
Current
2025-26
Unfunded
2025-26 Changes
Proposed
2026-27
Unfunded
2026-27
Risk Manager ----0.45 0.45 -
Senior Management Analyst 0.45 -0.45 -(0.45) --

0.70 -0.45 1.15 --1.15 -

INFORMATION TECHNOLOGY --
Assistant Director of IT/SS 1.00 --1.00 --1.00 -
Director of Information Technology 1.00 --1.00 --1.00 - Information Technology Manager 1.00 --1.00 --1.00 -
Information Technology Specialist I 1.00 -1.00 2.00 --2.00 - Information Technology Specialist II 1.00 -(1.00) ----- Information Technology Supervisor 5.00 --5.00 --5.00 -
Information Technology Technician l/II 0.50 -0.50 1.00 --1.00 - Management Analyst 1.00 --1.00 --1.00 -
Senior Administrative Assistant 1.00 --1.00 --1.00 -
Senior Information Technology Specialist 2.00 --2.00 --2.00 - Support Services Supervisor 0.10 --0.10 --0.10 -

14.60 -0.50 15.10 -- 15.10 -

SUPPORT SERVICES
Information Technology Technician l/II 0.50 -(0.50) ----- Office Specialist - AM 0.60 --0.60 --0.60 -
Office Specialist - PM 0.60 --0.60 --0.60 -
Support Services Supervisor 0.90 --0.90 --0.90 -

2.60 -(0.50) 2.10 --2.10 -

FACILITIES
Custodian II 0.40 --0.40 -0.40 0.80 -
Director of Public Works 0.10 --0.10 --0.10 -
Field Supervisor-Trades 0.25 -0.55 0.80 -(0.40) 0.40 -
Lead Maintenance Worker-Electrician 0.30 --0.30 -0.10 0.40 - Lead Maintenance Worker-Facilities 0.80 -(0.80) --0.50 0.50 - Lead Maintenance Worker-HVAC 0.35 --0.35 --0.35 -
Lead Maintenance Worker-Trades -----0.40 0.40 -
Maintenance Superintendent 0.50 --0.50 --0.50 -
Maintenance Worker I - Facilities 0.30 --0.30 -(0.30) -- Maintenance Worker II - Facilities 0.15 -0.30 0.45 -(0.10) 0.35 - Management Analyst --0.20 0.20 -(0.20) --
Management Assistant 0.20 -(0.20) -----
Principal Management Analyst 0.05 -(0.05) -----
Senior Management Analyst -----0.25 0.25 -

3.40 --3.40 -0.65 4.05 -
Internal Service Funds Total 22.10 -0.80 22.90 -0.65 23.55 - TOTAL AUTHORIZED POSITIONS 198.20 1.00 2.00 200.20 1.00 (4.00)196.20 6.00 580

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
360 | Annual Operating Budget
Summary of Budgeted Positions

SUMMARY OF BUDGETED POSITIONS
Department FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 City Council 5.00 5.00 5.00 5.00 5.00
City Manager:

City Manager 4.45 3.65 4.50 5.50 5.50
Economic Development 5.30 6.35 5.50 5.50 5.50
City Clerk: 5.00 5.00 5.00 5.00 5.00
Human Resources:

Emergency Management 1.30 0.00 0.00 0.00 0.00
Human Resources 5.00 5.10 5.50 4.70 4.70
Finance: 14.77 14.73 14.82 15.82 15.82
Community Development:

Planning 12.90 10.80 11.18 11.28 10.88
Building & Safety 19.90 20.45 20.45 20.45 20.70
Public Works:

Land Development 8.50 7.95 9.10 8.60 9.70
Public Works 19.31 20.05 20.50 20.20 21.40
CIP Administration 13.70 14.55 14.30 13.85 11.30
Parks Maintenance 9.73 10.80 9.40 9.45 9.30
Sheriff's Office* 0.15 0.15 0.00 0.00 0.00
Fire*
Emergency Management 0.00 1.00 1.00 1.00 1.00
Fire 4.00 4.00 4.00 5.00 5.00
Community Services:

Parks and Recreation 41.91 42.70 42.30 42.25 37.10
Service Level B 0.00 0.00 0.00 1.20 1.20
Service Level D 0.40 0.40 0.40 0.35 0.50
Service Level L 0.05 0.05 0.05 0.05 0.05
Library 1.50 1.35 1.60 1.70 1.40
Special Revenue Funds:

Community Development Block
Grant 0.20 0.20 0.20 0.20 0.40
Affordable Housing 0.95 1.50 1.12 1.02 1.02
Community Facility Districts: 0.08 0.12 0.18 0.18 0.18
Internal Service Funds:

Insurance 0.85 0.95 0.80 1.15 1.15
Information Technology 13.10 15.10 14.60 15.10 15.10
Support Services 2.60 2.10 2.60 2.10 2.10
Facilities 3.95 3.20 3.40 3.40 4.05
Workers' Compensation 0.85 0.95 0.70 1.15 1.15
Total Budgeted Positions 195.45 198.20 198.20 201.20 196.20 Unfunded Authorized Positions 1.00 1.00 1.00 1.00 6.00
Total Authorized Positions 196.45 199.20 199.20 202.20 202.20 *Sheriff and Fire services are contracted through Riverside County.

Temecula Sheriff’s Office Staffing for Fiscal Year 2026-27 includes 116.7 Sworn Officers and 18 Community Service Officers.

Fire Staffing for Fiscal Year 2026-27 is 79.
581

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 361
Appendix B – Supplemental Information
Locat or Map

LOCATOR MAP
The City of Temecula is a General Law City located in southwestern California, United States, with a population of 113,618. The City was incorporated on December 1, 1989.

Temecula, known as the Heart of Southern California Wine Country, is conveniently located off the I-15 freeway, approximately one hour north of San Diego. Temecula's central location attracts visitors from popular Southern California locales like Palm Springs, Los Angeles, Anaheim, Irvine, Carlsbad and San Diego.
582

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
362 | Annual Operating Budget
Community Profile and Demographics

COMMUNITY PROFILE AND DEMOGRAPHICS
Type of Government: General Law Date of Incorporation: December 1, 1989 Form of Government: City Manager Altitude: 1000-1200 ft.

Located: 55 miles north of San Diego

RECREATION/TOURIST DATA
Recreation and Culture:Hotels/Motels:

Number of
Parks
Number of
Park Acres
Number of
Lodging
Properties
Total
Number
of Rooms
2026 42 337 2026 21 2,922
2025 42 337 2025 21 2,933
2024 42 337 2024 20 2,808
2023 42 337 2023 20 2,813
2022 42 337 2022 20 2,691
(Includes Pechanga Resort & Casino)

EDUCATIONAL DATA
Temecula Unified School District (TK-12):Libraries:

Number of
Schools
Number of
Teachers
Number of
Students
Number of
Libraries
Number of
Volumes
2026 30 1,453 26,531 2026 2 1.1 million
2025 30 1,357 26,668 2025 2 1.1 million
2024 30 1,424 26,577 2024 2 1.2 million
2023 29 1,404 26,981 2023 2 1.3 million
2022 29 1,391 26,733 2022 2 1.2 million
(Total volumes in County available to Temecula
residents)

PUBLIC SAFETY DATA
Fire Protection:Police Protection:
(contract with Riverside County)(contract with Riverside County) Number of
Stations
Number of
Staff
Number of
Stations
Number
of Sworn
Officers
2026 579 2026 3 117
2025 579 2025 3 117
2024 578 2024 3 117
2023 572 2023 3 117*
2022 572 2022 3 119
(*Reduction due to change in Patrol Deputy shifts. Patrol coverage remains at same level as 2022, which is 210 hours per day)
583

City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 363

COMMUNITY PROFILE AND DEMOGRAPHICS
95,000
98,000
101,000
104,000
107,000
110,000
113,000
2022 2023 2024 2025 2026
109,925
108,899 108,700
112,220
113,618
Population (Est.)
Source: California Department of Finance (2024)
66,700
66,781 67,297
71,481 71,907
50,000
55,000
60,000
65,000
70,000
75,000
2022 2023 2024 2025 2026
Number of Registered Voters
Source: Riverside County Registrar of Voters (2026)
$143,718
$140,460 $141,899
$145,129
$166,346
$112,597
$110,832
$112,399 $115,071
$130,413
$90,000
$105,000
$120,000
$135,000
$150,000
$165,000
$180,000
2022 2023 2024 2025 2026
Income
Average Household Median Household
Source: Claritas360(2024)
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2022 2023 2024 2025 2026
$697,000 $660,000
$720,000 $731,500 $759,000
Median Housing Value
Source: HdL Coren & Cone (2026)
Table represents medianvalues witihin City limits
322 322 322
325 329
200
225
250
275
300
325
350
2022 2023 2024 2025 2026
City Maintained Streets (in Miles)