City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
388 | Annual Operating Budget
Glossary of Terms
GLOSSARY OF TERMS
ABATEMENT - Abatement usually applies to tax levies, special assessments, and service charges.
ACCOUNTING SYSTEM - The methods and records established to identify, assemble, analyze, classify, record, and report a government’s transactions and to maintain accountability for the related assets and liabilities.
ACCRUAL BASIS - The recording of the financial effects on a government of transactions and other events and circumstances that have cash consequences for the government in the periods in which those transactions, events, and circumstances occur, rather than only in the periods in which cash is received or paid by the government.
ACTUAL - Represents the actual costs from the results of operations.
ADOPTED - Represents the budget as approved by the City Council.
ADOPTION - Formal action by the City Council that sets the spending limits for the fiscal year.
AGENCY FUND - A fund normally used to account for assets held by a government as an agent for individuals, private organizations or other governments and/or other funds.
APPROPRIATION - A legal authorization granted by the City Council to make expenditures and incur obligations for specific purposes.
AMERICANS WITH DISABILITIES ACT OF 1990 (ADA)- A federal law providing for a wide range of protection to individuals which directly benefit District members.
ASSESSMENT DISTRICT - A separate local government agency formed to provide specific local public improvements that directly benefit District members.
AUDIT - A systematic collection of the sufficient, competent evidential matter needed to attest to fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out itsresponsibilities.
BALANCE SHEET - The financial statement disclosing the assets, liabilities, and equity of an entity at a specified date.
BALANCED BUDGET - A budget that reflects operating revenues that fully cover operating expenditures.
BUDGET - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscalyear.
BUDGETARY CONTROL - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and revenues.
CAPITAL EXPENDITURES - Expenditures resulting in the acquisition of or addition to the government’s general fixed assets having a unit cost of $5,000 or more and a useful life of greater than one year. Infrastructure assets of $100,000 or more are also recorded capital expenditures. 609
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 389
GLOSSARY OF TERMS
CAPITAL IMPROVEMENT - Construction or major repair of City buildings, infrastructure, and facilities such as streets, roads, highways, bridges, curbs, gutters, sidewalks, storm drains, traffic signals, streetlights, gas and water distribution facilities, and parks.
CAPITAL IMPROVEMENT PROGRAM (CIP) - A comprehensive plan which projects the capital needs of the community. Generally, it is a cyclical process that projects the needs for a set number of years. Capital improvements plans are essential to sound infrastructure and financial planning. The annual capital budget is derived from the long-term CIP.
CAPITAL OUTLAY - Expenditures which qualify as capital costs according to accounting standards. This includes furniture, fixtures, machinery, equipment, and other relatively minor fixed assets.
CAPITAL PROJECT - A specific undertaking involving the procurement, construction or installation of facilities and related equipment which improves, preserves, enhances, or modernizes the City’s provision of municipal services, has a long-term useful life, and for which costs exceed$30,000.
CAPTITAL PROJECTS FUNDS - A fund established to account for the acquisition and/or construction of major capital assets.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) - Funds allocated to local government from the federal government, based on a formula, but required to be applied for and used within a broad functional area such as community development.
CONSTRUCTION ENGINEERING - Engineering work during the construction process that ensures projects are constructed in accordance with design parameters and specifications. The primary construction engineering functions are construction inspections, laboratory services, field surveys and design plan updates or interpretations.
CONTINGENCY - A budgetary reserve set aside for emergency or unanticipated expenditures.
CONTRACTUAL SERVICES - Contracts for professional services.
CORE VALUE - The Quality of Life Master Plan (QLMP) provides the framework for the City’s Strategic Budgeting activities. The City Council has set priorities and guided staff in developing seven (7) Core Values upon which to focus time and resources (as identified in the QLMP). These areas include:
1. A Safe & PreparedCommunity
2. Transportation Mobility &Connectivity
3. Healthy & Livable City
4. Economic Prosperity
5. Sustainable & Resilient City
6. Accountable & Responsive City Government
7. Equity
COVID-19 - The viral outbreak, caused by a coronavirus that causes upper-respiratory illness, became a pandemic in the first quarter of 2020. The economic impact it will have on local government is difficult to predict due to the sudden and unprecedented nature of the pandemic. The full effect may not be known for some time but local governments are likely to see significant reductions in taxrevenues. 610
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
390 | Annual Operating Budget
GLOSSARY OF TERMS
CURRENT BUDGET - Represents the original adopted budget plus any approved changes and anticipated year-end adjustments.
DEBT SERVICE FUND - Funds established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Sometimes referred to as a Sinking Fund.
DEPARTMENT - An organizational unit comprised of programs and program managers. A single director manages each department.
DESIGNATED FUND BALANCE - Management’s intended use of available expendable financial resources in governmental funds reflecting actual plans approved by the City Council.
ENCUMBRANCE - Obligations in the form of purchase orders, contracts, or other commitments. They cease to be encumbrances when paid, cancelled, or when the actual liability is set up.
EXPENDITURES - Decreases in net financial resources that include current operating expenses that require the current or future use of net current assets, debt services, and capital outlays.
FEES - Charges for specific services.
FINES AND FORFEITURES - A fine is a financial penalty imposed by a government agency as restitution for wrongdoing. The wrongdoing is typically defined by a codification of legislation, regulations, and decrees.
Forfeiture is the automatic loss of property, including cash, as a penalty for breaking the law, or as compensation for losses resulting from illegal activities. Once property has been forfeited, the City may claim it, resulting in confiscation of theproperty.
FISCAL YEAR - The period designated by the City signifying the beginning and ending period for recording financial transactions. The City of Temecula has a fiscal year of July 1 through June30.
FRANCHISE - A special privilege granted by a government, permitting the continued use of public property, such as refuse disposal and cable television, and usually involving the elements of monopoly and regulation.
FULL-TIME EQUIVALENTS (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Most full-time employees are paid for 2,080 hours in a year.
FUND - A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equities or balances and changes therein which are segregated for the purpose of carryingon specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
FUND BALANCE - The difference between assets and liabilities that is generally spendable or available for appropriation. Some Governmental funds as well as Proprietary and Fiduciary funds which utilize full accrual basis of accounting also include non-spendable fund balance which includes amounts that cannot be spent because they include prepaid items or inventories or are legally required to be maintained intact, such as the principal portion of anendowment.
611
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 391
GLOSSARY OF TERMS
FUTURE YEARS - The intent of the future period is to project out to ten (10) years, projects that are anticipated by staff and the City Council that will ultimately have a very large impact on the City and surrounding area.
GANN APPROPRIATIONS LIMIT - This term refers to Article XIIIB of the California State Constitution that places limits on the amount of proceeds from taxes that state and local governmental agencies can receive and spend each year.
GENERAL FUND - Accounts for tax and other general fund revenues (e.g., sales taxes, property taxes, fines and forfeitures, investment interest, etc.) and records the transactions of general governmental services (e.g., police, fire, library, parks and recreation, public service, etc.).
GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP) - GAAP is the uniform minimum standards of and guidelines to financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompass the conventions, rules, and procedures necessary to define the accepted accounting practices at a particular time. They include both broad guidelines of general application and detailed practices and procedures. GAAP provides a standard by which to measure financial presentations.
GOALS - The desired result of accomplishments within a given time frame, usually a fiscal year.
GRANTS - Contributions or gifts of cash or other assets from another government to be used or expended for a specified purpose.
INTERGOVERNMENTAL REVENUES - Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes.
INTERNAL SERVICE FUNDS - Funds used to account for financing of goods or services provided by one department to other departments on a cost-reimbursement basis.
LEVY - To impose taxes for the support of government activities.
LICENSES, PERMITS AND SERVICE CHARGES - License and permit fees are charged as a means of recovering the cost of regulating various activities. These charges are authorized through the California Government Code and State Constitution. Examples include building permits and business licenses. The City also assesses service charges through user fees on everything from recreation programs to facility rentals. Service charge is also the classification for the Community Services funding allocation from the General Fund to the Temecula Community Services District. It is also the classification for charges back to departments from Internal Service Funds.
LONG-TERM DEBT - Debt with a maturity of more than one year after the date of issue.
LONG-TERM GOALS - An observable and measurable result, having one or more objectives to be achieved within a set time frame.
612
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
392 | Annual Operating Budget
GLOSSARY OF TERMS
MEASURE C (SPECIAL TAX) - A voter approved 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. The maximum amount for each fiscal year is set by ordinance at $74.44 per single-family residential dwelling unit, $55.83 per multi-family residential dwelling unit, $148.88 per acre of vacant property in a residential zone, $297.76 per acre of vacant property in a non-residential zone, $446.64 per acre of non- residential improved property, and $37.22 per acre for agriculture uses. Special Tax is allocated 50% in the General Fund and 50% in the Community ServicesDistrict.
MEASURE S (SALES TAX) - A one cent add-on sales tax, approved by voters on November 8, 2016, to maintain 9- 1-1 emergency response times, prevent cuts to local paramedic/police/fire protection, school safety patrols, youth/afterschool senior, disabled services; improve freeway interchanges/reduce traffic; and other general services. It is estimated that this tax will generate approximately $23 million annually.
MISCELLANEOUS REVENUE - Revenue which includes Police charges for services including report copies, fingerprint rolling fees, etc. as well as right of way advertising revenue, charges for planning commission packets and other miscellaneous charges and reimbursements.
MODIFIED ACCRUAL BASIS -The accrual basis of accounting adapted to the governmental fund-type measurement focus. Under it, revenues and other financial resource increments are recognized when they become susceptible to accrual that is when they become both “measurable” and “available” to finance expenditures of the current period. Expenditures are recognized when the fund liability is incurred except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when used. All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis for accounting.
MOTOR VEHICLE LICENSE FEE - The motor vehicle license fee (MVLF), also called the motor vehicle in- lieu tax, is a tax on the ownership of a registered vehicle in place of taxing vehicles as personal property. The MVLF is paid annually upon vehicle registration in addition to other fees, such as the vehicle registration fee, air quality fees, and commercial vehicle weight fees all of which fund specific state programs. The MVLF funds City services.
OBJECTIVES - The necessary steps to be accomplished in order to achieve a desired goal.
OPERATING BUDGET - Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled.
OPERATING TRANSFERS IN/OUT - Authorized exchanges of cash or other resources between funds.
OPERATIONS & MAINTENANCE -Supplies and other materials used in the normal operations of City departments.
ORGANIZATION - A unit of operation having specific responsibilities and duties and collectively form an Agency.
The terms organization and division is used interchangeably throughout the budget document (i.e., Accounting Organization, Traffic Division, etc.).
OTHER TAXES - Classification for all taxes with the exception of property tax and sales and use tax which are defined on their own. Includes Gas Tax, Measure C (Special Tax), Transient Occupancy Tax and Franchise Fees. 613
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 393
GLOSSARY OF TERMS
PRIVATE-PURPOSE TRUST FUNDS - These funds are used to account for resources held and administered by the reporting government when it is acting in a fiduciary capacity for other governments.
PROPERTY TAX - A 1% levy upon the assessed valuation of property, as established by Proposition 13 in 1978.
PROPERTY TAX IN LIEU OF VLF - A swap from the state of California, where over 90% of California City and county vehicle license fee revenues were exchanged for additional property tax. Subsequent to the Fiscal Year 2004-05 base year, each city’s and county’s property tax in lieu of VLF increases annually in proportion to the growth in gross assessed valuation in that jurisdiction.
RESOURCES - Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances.
REVENUES - The yield of taxes and other sources of income that a governmental unit collects and receives for public use.
SALES AND USE TAX -Sales tax applies to the sale of merchandise, including vehicles within the State of California.
The use tax applies to the use, storage or other consumption of those same kinds of items within the state. Sales tax applies when physical merchandise is purchased in California and use tax applies when a similar purchase without tax is made from a business located outside thestate.
SPECIAL ASSESSMENT - A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily thoseproperties.
SPECIAL REVENUE FUNDS - These funds are used to account for specific resources that are legally restricted to expenditure for particular purposes.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA) - Successor agency established in order to pay the debts and obligations and to perform the obligated activities of the former Temecula Redevelopment Agency (RDA) due to ABx1 26 which dissolved Redevelopment Agencies.
TAXES - Compulsory charges levied by a government to finance services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments. Neither does the term include charges for services rendered only to those paying such charges.
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) - An assessment district that was established in Temecula to provide a comprehensive, balanced neighborhood and community park system by constantly reviewing growth, demographics and facilities available. It also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, emergency dirt road maintenance, library services and an intern fellowship program.
614
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
394 | Annual Operating Budget
GLOSSARY OF TERMS
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) FUNDS (190-198, 501-530)- Upon incorporation of the City of Temecula, effective December 1, 1989, voters approved the formation of the Temecula Community Services District (TCSD) to provide specified services to properties within its jurisdiction. TCSD is a separate legal entity than the City and operates under the authority of Community Services District Law. Benefit assessments, and a special tax (Measure C) are charged to property owners within the District, are received to provide specified services identified below:
x Parks and Recreation - Facility operations and maintenance, community recreation programs x Service Level “B” - Streetlight Replacement
x Service Level “B” - Residential streetlights
x Service Level “C” - Perimeter landscaping and slope maintenance x Service Level “D” - Refuse collection, recycling, and street sweeping x Service Level “R” - Street and road maintenance
x Service Level “L” - Harveston Lake Park maintenance
x Library Fund - Services at the Ronald H. Roberts Temecula Public Library on Pauba Road TRANSIENT OCCUPANCY TAX - Also called a Hotel Tax, this revenue source originates in a tax placed on lodging facilities for the occupancy of a room. The City of Temecula’s Transient Occupancy Tax rate is 8%.
TRANSFERS IN/OUT - Payments from one fund to another fund primarily for work or services provided.
TRANSFERS TO CIP - Authorized exchanges of cash or other resources to the Capital Improvement Program.
UNDESIGNATED FUND BALANCE - Available expendable financial resources in a governmental fund that are not the object of tentative management plans (i.e. designations).
UNSPECIFIED - Funds that have not been identified for various proposed projects.
USE OF MONEY AND PROPERTY - Classification used for revenue sources which include lease and rental income, as well as investment interest.
USER CHARGES/FEES -A sum of money paid by the individual who chooses to access a service or facility. Examples of user fees include building permit fees and recreation class fees. With user fees, the individual directly pays for something he or she wants and receives what he or she has paid for.
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) - WRCOG is a voluntary association that represents Riverside County, 17-member local cities located in Western Riverside County, Eastern Municipal Water District and Western Riverside Water District, that seek to provide cooperative planning, coordination, and technical assistance on issues of mutual concern that cross jurisdictional lines. The primary functions of WRCOG include (a) serve as a forum for consideration, study and recommendation on area-wide and regional problems; (b) assemble information helpful in the consideration of problems peculiar to Western Riverside County; (c) explore practical avenues for intergovernmental cooperation, coordination and action in the interest of local public welfare and means of improvements in the administration of governmental services; and (d) serve as the clearinghouse review body for Federally-funded projects in accordance with Circular A-95 in conjunction with the Southern California Association ofGovernments.
615
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 395
Index
INDEX
Additional Resources................................................................................................................................384 Assessed Value of Taxable Property.........................................................................................................368 Budget and Fiscal Policies.........................................................................................................................307 Budget and Fiscal Policies Compliance Matrix..........................................................................................307 Budget Calendar .........................................................................................................................................51 Budget Engagement Sessions.....................................................................................................................50 Budget Process............................................................................................................................................47 Budgetary Fund Structure...........................................................................................................................37 California Society of Municipal Finance Officers (CSMFO) Award..............................................................33 CIP – Capital Improvement Program Summary........................................................................................267 CIP – Capital Project Expenditure Summary.............................................................................................277 CIP – Capital Projects Revenue Summary.................................................................................................274 CIP – Capital Projects Summary – by Funding Source..............................................................................2 81 CIP – Capital Projects Summary – by Project............................................................................................292 CIP – Description of Revenue Sources......................................................................................................270 CIP – Expenditure Summary by Project Type ...........................................................................................280 CIP – Fund Summary.................................................................................................................................134 CIP – Future Years Projects.......................................................................................................................305 CIP – Major Revenue Sources...................................................................................................................276 CIP – Summary of Operating & Maintenance Costs.................................................................................3 04 City Attorney.............................................................................................................................................175 City Clerk...................................................................................................................................................169 City Council...............................................................................................................................................153 City Manager.............................................................................................................................................161 City of Temecula at a Glance ......................................................................................................................34 City Organizational Chart............................................................................................................................28 Citywide Long-Term Goals..........................................................................................................................30 Community Development Department....................................................................................................193 Community Profile and Demographics.....................................................................................................362 Community Reinvestment Program Funding Matrix................................................................................383 Comparative City Information..................................................................................................................377 Computation of Direct and Overlapping Bonded Debt ............................................................................374 Consolidated Capital Outlay .....................................................................................................................365 Departmental Information........................................................................................................................151 Description of Funds...................................................................................................................................39 Directory.....................................................................................................................................................27 Finance Department.................................................................................................................................179 Fire Department........................................................................................................................................225 Fiscal Year 2026-27 Debt Obligations.......................................................................................................371 Five-Year Expenditure Projection – General Fund......................................................................................59 Five-Year Financial Projection – General Fund...........................................................................................55 Five-Year Financial Projection – Measure S Fund.......................................................................................63 Five-Year Financial Projection – Temecula Community Services District Fund..........................................67 Five-Year Revenue Projection – General Fund...........................................................................................57 Fund Balance Summary ..............................................................................................................................69 616
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
396 | Annual Operating Budget
Funding Sources by Department ................................................................................................................46 Funds and Departments .............................................................................................................................44 GANN Appropriations Limit......................................................................................................................367 General Fund – Fund Summaries................................................................................................................83 General Fund – Revenue by Source............................................................................................................80 General Fund – Revenue Detail..................................................................................................................81 Glossary of Acronyms ...............................................................................................................................385 Glossary of Terms .....................................................................................................................................388 Government Finance Officers Association (GFOA) Award..........................................................................32 Human Resources and Risk Management................................................................................................185 Internal Service Funds – Fund Summaries................................................................................................124 Internal Service Funds – Revenue Detail..................................................................................................122 Internal Services Funds.............................................................................................................................253 Largest Employers by Number of Employees...........................................................................................376 Legal Debt Margin.....................................................................................................................................370 Locator Map..............................................................................................................................................361 Long Range Financial Projection.................................................................................................................53 Major Expenditure Categories....................................................................................................................74 Major Revenue Sources..............................................................................................................................71 Mission and Value Statements...................................................................................................................29 Non-Departmental....................................................................................................................................233 Performance Measures.............................................................................................................................135 Principal Secured Property Owners..........................................................................................................373 Public Works Department.........................................................................................................................203 SARDA – Fund Summary...........................................................................................................................120 Schedule of Authorized Positions.............................................................................................................347 Schedule of Changes in Allocated Positions.............................................................................................353 Special Revenue and Debt Service Funds – Fund Summaries....................................................................91 Special Revenue and Debt Service Funds – Revenue Detail.......................................................................89 Summary of Affordable Housing Investment...........................................................................................379 Summary of Budgeted Positions...............................................................................................................360 Summary of Changes in Authorized Positions, Personnel and Benefit Costs...........................................345 Summary of City Grant Recipients............................................................................................................381 Summary of Federal Grant Expenditures .................................................................................................369 Summary of Interfund Transfers...............................................................................................................378 Summary of Property Tax Collections.......................................................................................................372 Table of Contents..........................................................................................................................................3 TCSD – Fund Summaries...........................................................................................................................110 TCSD – Revenue by Source.......................................................................................................................106 TCSD – Revenue Detail..............................................................................................................................107 Temecula Community Services District ....................................................................................................237 Transmittal Message.....................................................................................................................................9 Understanding the Budget Document........................................................................................................35 617
ELECTRONIC SUBMITTED
PUBLIC COMMENT
1 Subject:FW: Pickleball Facility - "The Pit"
From: TIFFANY RICHTER
Cc: Tiffany Richter wrote:
Dear Ron,
2 I hope you are doing well.
I wanted to take a moment to reach out regarding Temecula’s pickleball facility, “The Pit.” First and foremost, I would like to extend my sincere thanks to you and the City of Temecula for creating such an outstanding facility. On behalf of the pickleball community—both local players and those visiting from out of town—we are incredibly appreciative of the opportunity to play daily. We are also grateful for the addition of the eight new courts at Mike Naggar Park. Having access to these facilities is truly a privilege, and it is not something we take for granted.
Lanae Turley-Trejo suggested I connect with you to share a few ideas that could further enhance the experience at The Pit. I spoke informally with several regular players, and a few common themes emerged. I wanted to share these with you in advance of the budget planning process, in the hope that some may be considered:
1. Additional Shade Structures
While the existing shade structure is appreciated, it does not provide sufficient coverage throughout the day as the sun shifts. Expanding shade coverage— particularly over the spectator area—would offer significant relief for players and visitors.
2. Paved Driveway and Parking Area
We understand the City has taken steps to mitigate dust in the current driveway and parking areas, which is appreciated. However, paving these areas would greatly reduce dust overall. There have been occasions where vehicles have kicked up excessive dust, creating uncomfortable—and at times difficult—breathing conditions, particularly for individuals with asthma. Additionally, it may help protect nearby amenities, such as the new skating rink.
3. Refillable Water Station
There has been some discussion among players about the possibility of installing a refillable water station. I understand a new water line may have been installed near the far end of the baseball park, and I wanted to inquire whether connecting a station to that line might be feasible.
4. Real-Time Camera Access
A live camera feed could be a helpful tool for players to check court availability and current weather conditions before arriving, allowing for better planning and improved overall experience.
Thank you again for your continued support of the pickleball community and for all that you do to maintain and improve these facilities. Please let me know if you would like any additional feedback or input. I look forward to seeing you at the Budget Meeting on 5/21/26.
Warm regards,
Tiffany Richter