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2 CITY OF TEMECULA / TEMECULA COMMUNITY SERVICES DISTRICT /
SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY
AGENDA REPORT
TO: City Council/Board of Directors
FROM: Aaron Adams, City Manager/General Manager/Executive Director
DATE: May 21, 2026
SUBJECT: Review Proposed Fiscal Years 2027-31 Capital Improvement Program and Fiscal Year 2026-27 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District and the Successor Agency to the Temecula Redevelopment Agency
______________________________________________________________________________
PREPARED BY: Jennifer Hennessy, Director of Finance/Treasurer
RECOMMENDATION: That the City Council/Board of Directors review and discuss the proposed Fiscal Years 2027-31 Capital Improvement Program and Fiscal Year 2026-27 Annual Operating Budgets for the City of Temecula, the Temecula Community Services District and the Successor Agency to the Temecula Redevelopment Agency.
DISCUSSION: Each year, the City Council holds a Budget Workshop in which staff presents the Five-Year Capital Improvement Program Budget and the Proposed Annual Operating Budget for the City, Temecula Community Services District (TCSD), and the Successor Agency to the Temecula Redevelopment Agency (SARDA). Any changes to the Proposed Budgets, as requested at the Budget Workshop, will be incorporated into the Adopted Budget, presented to Council at its June 9, 2026 meeting.
The attached Transmittal Letter summarizes the highlights of the Fiscal Year 2026-27 Proposed Annual Operating Budget and Fiscal Years 2027-30 Capital Improvement Program documents.
FISCAL IMPACT: The specific fiscal impacts by Fund are noted in the attached Transmittal Letter.
ATTACHMENTS: 1. Transmittal Message
2. Proposed Fiscal Years 2027-31 Capital Improvement Program
3. Proposed Fiscal Year 2026-27 Annual Operating Budget
3 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
May 21, 2026
Honorable Mayor and Members of the City Council:
I am pleased to submit the Proposed Annual Operating Budget for the Fiscal Year 2026-27. This budget document was developed to serve as the financial plan for the City’s programs and policies. It reflects the resources necessary to meet the goals, programs, and service priorities that the City Council is committed to providing its citizens.
The Fiscal Year 2026-27 Annual Operating Budget has been developed after a considerable review process.
Departmental budget submittals were prepared and reviewed by line item in connection with projected revenues.
Detailed performance objectives and accountability measures were developed consistent with the City’s Quality of Life Master Plan. Five-year revenue and expenditure projections were developed to identify the future impacts of staffing and program changes, as well as the impact of capital improvement projects. The resulting budget is realistic and balanced and continues to provide quality services to the community while effectively utilizing available resources.
As you will read below, the City’s General Fund is not only balanced for the ensuing fiscal year, but also projected to be balanced for the next five fiscal years. Additionally, the City’s reserve funds are fully funded across all five years of the long-range financial forecast.
CITY OF TEMECULA PROFILE
The City of Temecula is a dynamic community comprised of approximately 113,618 citizens. The City maintains 42 parks on 337 developed acres throughout the community, which provide recreation opportunities for both the citizens of Temecula, as well as surrounding communities. Law Enforcement and Fire Protection services are provided through contracts with the County of Riverside.
Known as Southern California's Wine Country, the City of Temecula is a nationally and internationally known tourist destination welcoming over 3 million visitors a year. Temecula is also an innovative, dynamic economic powerhouse and job center for the region, all the while retaining its small-town charm and character that residents cherish. Offering the finest quality of life, Temecula is listed among the safest cities in the State and Nation per FBI statistics. With a diverse population, citizens enjoy picturesque neighborhoods, a vast array of beautifully manicured parks and trails, multi-cultural dining options, retail stores that include the region's premier shopping destination Promenade Temecula, the highest rated School District in Riverside County for its outstanding academic scores, higher education opportunities including Mount San Jacinto College's Temecula Campus and Cal State San Marcos at Temecula.
4 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
As a visitor destination, Temecula also offers a vibrant Old Town with boutique shops, outdoor markets, and a distinct foodie district, Pechanga Resort Casino, Southern California’s Wine Country speckled each morning with hot air balloons hovering over grapevines and equestrian trails, championship golf courses, Vail Ranch Historic Headquarters comprised of turn-of-the-century old west structures restored into specialty restaurants and retail, and City of Temecula signature events, parades, museums and a theater. Temecula's scenic landscape of rolling hills, vineyards and wineries are swept clean each afternoon with fresh ocean breezes that funnel through the Santa Margarita gap of the coastal mountains providing an ambience that magnifies the beauty of the City and Temecula Valley.
ECONOMIC INDICATORS
The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections.
x Estimated Population: up 1.2% from 2025 (Source:State Department of Finance) x Median Age: up from 37.5 in 2025 (Source:Pop-Facts Report, 4-28-26) x Number of Households: up 3.3% from 2025 (Source:Pop-Facts Report, 4-28-26) x Average Household Income: up 14.6% from 2025 (Source:Pop-Facts Report, 4-28-26) x April Median Home Price: up 3.8% from 2025 (Source:HdL Companies) x Number of Jobs: up 0.4% from April 2025 (Source:EDD)
x April Unemployment Rate: zero change from April 2025 (Riverside County: 5.1%, CA: 5.3%, Nation: 4.3% (Source:EDD & BLS)
Temecula has experienced increases in the majority of the above economic indicators. Population has increased
1.2%, marking two consecutive years of growth. Housing prices continue to climb due to the low inventory, with a
3.8% increase in the median home price. Temecula’s average household income has increased by 14.6%, while the number of jobs has remained relatively flat over the prior year. Unemployment is unchanged, but remains lower than both Riverside County and the State.
Population
113,618
Median Age
39.9 years
Households
38,128
Average
Income
$166,346
Median
Home Price
$759,000
(Apr’26)
Unemployment
Rate 4.4%
(Mar’26)
# of Jobs
54,300
(Apr’26)
5 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
LOCAL ECONOMY AND LEGISLATIVE IMPACTS
Local Economy
As the economic indicators noted above have improved over 2025, the impact to the local economy is evident in the retail activity and sales tax trends. Sales Tax revenue is projected to continue to grow at a modest 2.0% next fiscal year, as both national retailers and local entrepreneurs continue to invest in Temecula by opening businesses, undergoing expansion projects and starting new construction. Currently, there are nine new businesses slated to open soon, including a trampoline park, and multiple retailers and restaurants.
With Temecula’s regional shopping mall, Old Town district, and auto mall, shoppers from the entire Temecula Valley region contribute to the City’s sales tax base. Temecula residents generated $36,988 in sales tax per capita in 2025, which far outpaced neighboring cities and statewide averages.
Source: HdL Companies
Legislative Impacts
The City of Temecula actively follows state and federal legislative proposals each year and works closely with the League of California Cities and the National League of Cities to stay informed and engaged to ensure the City supports legislation that aligns with the City’s local legislative platform guiding principles:
I. Preservation of Local Control - Support measures that preserve and protect the City’s general law powers and duties to enact legislation and policy direction concerning local affairs. Oppose measures that preempt local authority.
6 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
II. Promotion of Fiscal Stability - Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City’s revenue base. Oppose measures that mandate costs with no guarantee of local reimbursement or offsetting benefit. Oppose measures that shift local funds to the county, state, or federal government, without offsetting benefit.
III. Support Funding Opportunities - Support measures that allow the City to compete for its fair share of regional, state and federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, state and federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards.
Governor Newsom’s proposed 2026-27 budget makes significant reductions to the Homeless Housing, Assistance and Prevention (HHAP) grant program. Funding for the program is being reduced by one-half of its historic funding level. Reducing funding to this level will significantly impact shelter capacity, rental assistance, and the development of supportive housing.
California Proposition 36 – Homelessness, Drug Addiction, and Theft Reduction Act was passed in November 5, 2024 and became effective December 18, 2024. This new law allows felony charges for certain repeat theft and drug offenses—including fentanyl possession—reversing portions of Proposition 47. While Temecula is a contract City, Proposition 36 and its implementation impacts the City. Local governments are encouraging lawmakers to approve a $400 million budget request to fund Proposition 36.
Senate Bill 707 Open Meetings: Meeting and Teleconference Requirements – SB 707 was signed into law on October 3, 2025 and became effective January 1, 2026. This new law updates public meeting rules for local agencies, focusing on enhanced teleconferencing, increased accessibility, and, for many, mandatory agenda translation into multiple languages.
Assembly Bill 1383 Public Employees’ Retirement Benefits: Safety Members – AB 1383 is a bill in the California Legislature that addresses public employees’ retirement benefits, specifically for safety members (such as certain law enforcement, fire, and other designated public safety roles) under the Public Employees’ Retirement Law (PERL). Currently, PERL — and the California Public Employees’ Pension Reform Act of 2013 (PEPRA) — set rules for how defined benefit pensions are calculated, including factors like final compensation, credited service, and retirement age. AB 1383 proposes adjustments to these provisions for safety members, potentially modifying eligibility criteria, benefit formulas, or retirement age requirements. 7 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
GOALS AND OBJECTIVES
The City Council recently adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The Temecula 2040 Plan is a living document that reflects the vision and long-term goals of the City. As Temecula continues to grow and mature, the Temecula 2040 Plan will be a crucial part of not only maintaining the City’s quality of life, but to take a proactive approach and identify specific community needs, goals, and possible improvements. The City of Temecula utilizes the QLMP to formulate and budget Citywide projects. In addition, the QLMP is used to guide planning, investment decisions, provide vision and continuity for the next phase of the City's journey, and for continuous process improvement in partnership with Temecula's residents.
To incorporate the QLMP into the City’s budget process, the QLMP includes specific goals based on the Core Values of the QLMP. These goals are used by each department to develop short-term objectives and performance measures for completion in the upcoming fiscal year and are reflected in the Department Information and Performance Measures sections of the budget document.
The QLMP outlines 7 Core Values:
BUDGET OVERVIEW
The Fiscal Year 2026-27 Budget reflects a structurally balanced, healthy fiscal outlook across all major funds for the City of Temecula. General Fund, Special Revenue Funds and the Temecula Community Services District (TCSD)Fund revenues are growing, albeit at a modest pace, and expenditures include all contractually obligated increases offset by various budget reductions necessary to partially absorb rising costs in Public Safety departments.
Healthy & Livable City
Economic Prosperity
Sustainable & Resilient City
Transportation Mobility & Connectivity
Accountable & Responsive City
Government
Safe & Prepared Community Equity
8 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
Major changes from the prior Operating Budget are summarized below.
Assumptions, combined with known contractual obligations are used in forecasting revenue sources, expenditure trends, as well as the long-term financial forecasts.
Current year revenue assumptions are based on multiple factors, including input from the City’s Sales Tax and Property Tax consultants, input from the State of California, local economic trends and development activity.
Assumptions beyond the current year include general inflationary growth projections plus any known development projects, new hotels, expanding businesses and any other specific data that may impact revenue growth. The table below summarizes the growth assumptions for the General Fund Five-Year Revenue Forecast:
Revenue &
Transfers In
Change from
Prior Year
Expenditures &
Transfers Out
Change from Prior
Year
Change in
Fund Balance
from Prior
Year
Variance Analysis
7,357,943 (23,087,065) (10,095,956)
Revenue growth attributable to Sales Tax, Measure S Tax, and Transfers In to support Public Safety expenditures. Expenditure reduction due to reduced Capital Project funding, a one-time transfer between funds to accelerate the City's debt paydown, and reduced transfers from Measure S.
10,116,160 (30,054,868) 8,749,284
Revenue growth attributable to Development Impact Fees. Expenditure reduction due to reduced Capital Project funding from Development Impact Fees, Measure A, Affordable Housing and Road Maintenance Funds.
1,951,443 223,512 (357,577)
Revenue growth attributable to the TCSD Operations and Library Funds.
Expenditure growth due to higher internal service fund allocations, increased contractual obligation with Riverside County for library services, and increased Waste Hauling costs.
(715,662) 15,803 (1,013,132)
Revenue decline due to reduced Redevelopment Property Tax Trust Fund distributions due to the wind down of the former Redevelopment Agency.
Expenditure increase due partly to Depreciation which had not been budgeted in the prior year.
1,054,560 (1,605,988) 144,801
Revenue increase due to one-time transfers in to the Facility Replacement Fund.
Expenditure decline due to reduced one-time transfers.
(121,006,977) (210,032,368) 2,647,639
Fund Category
GENERAL FUNDS
SPECIAL REVENUE FUNDS
TEMECULA COMMUNITY SERVICES
DISTRICT (TCSD)
SUCCESSOR AGENCY TO THE TEMECULA
REDEVELOPMENT AGENCY (SARDA)
INTERNAL SERVICE FUNDS
ALL BUDGETED CITY FUNDS
9 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
Assumptions used in forecasting Operating expenditures include the following:
Contractual obligations:
o Negotiated cost of living adjustment of 3.0% for City employees o Negotiated cafeteria benefit increase of $200 per month for City employees o Public Safety labor contracts (7.5% for Sheriff positions, 12.2% for Fire positions, due to vacant Medic positions in the prior fiscal year)
o Reclassification of 20 full-time authorized positions o CalPERS Pension cost sharing of 3% for eligible employees Council policies:
o Acceleration of the Debt/Liability Paydown Strategy ($9,349,256 in FY26-27 for additional discretionary payments towards the City’s CalPERS unfunded pension liability). This is the final payment in the Debt/Liability Paydown Strategy causing the City’s CalPERS Pension program fully funded.
o Annual Replacement allocations for Fleet, Technology, Facilities, Support Services, Street Maintenance and Street Light assets.
Expected savings achieved from the Debt/Liability Paydown Strategy, which will generate approximately $6 million in annual operating savings and $47.7 million in total interest savings. Actuarially determined contributions to the City’s pension and retiree health programs Estimated inflation for non-personnel related expenditures.
GENERAL FUND ANALYSIS
The General Fund forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully funded in all five years.
Ending fund balance for Fiscal Year 2026-27 is projected to be $29,750,915, of which $28,123,539 is committed to fulfilling the Fund’s policy-level reserves of 25% of Operating Expenditures. A total of $477,755 of fund balance is committed to cover the costs of a Sheriff’s Deputy position funded by the Pechanga Tribe.
A total of $1,149,622 in fund balance is unassigned and available for one-time appropriations.
General Fund Revenue Highlights
General Fund revenue is projected to increase by 5.9% over the prior year with a total of $126,785,291. Tax revenues, excluding the transfer from Measure S Fund, are projected to increase by
2.5%. The transfer of Measure S is increasing significantly to fund Public Safety expenditures.
10 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
The General Fund major revenue sources are summarized below:
x Sales Tax ($50,186,189) is projected to
increase by 2.0% over the prior fiscal year as
taxable retail sales are projected to increase
slightly, although there are still concerns
about the overall trajectory of the economy.
x Property Tax ($12,907,422) is projected to
increase by 4.3%, due to a stable housing
market. Property Tax revenue for Fiscal
Year 2026-27is based on assessed valuation
from the year prior, which have shown
steady growth, as inventory is still low and
home prices continue to rise slightly.
x Franchise Fees ($4,100,000) are projected to stay flat due to slight increases in utilities services, offset by continuing declines in cable subscribers.
x Transient Occupancy Tax ($3,841,603) is projected to decline by 2% over the prior year, due to lower occupancy and average daily rates charged by the local hotel and motel establishments. x Licenses, Permits & Service Charges ($7,175,200) are projected to increase by 1.9% due to the continuation of development activity within the City.
x Intergovernmental Revenues ($12,373,457) are projected to increase by 3.1% due to the increases expected in Property Tax In Lieu of Vehicle License Fees which is driven by property value assessments within the City.
x Operating Transfers In ($3,612,514) are projected to decrease by 75.2% due to several one-time Transfers in FY25-26 related to the Debt/Liability Paydown Strategy. FY26-27 reflect the Transfers In of Gas Tax ($3,329,012) and Supplemental Law Enforcement Services Fund ($283,502) revenue. x Operating Transfers In -Measure S ($23,872,579)will continue to fund 11 Sheriff Deputies, staffing for Fire Station No. 95, funding for the future replacement of the fire ladder truck and inspection vehicles, enhanced park maintenance services, plus additional funding to further support Public Safety. 11 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
General Fund Expenditure Highlights
The largest expenditure of the General Fund is Public
Safety, making up 58% of total General Fund
expenditures. In accordance with the Measure S ballot
language and City Council appropriation guidelines, the City has invested heavily in Public Safety over the past several years and continues to hold Public Safety as its highest priority.
In addition to the ongoing Measure S-funded Public
Safety expenditures, the Sheriff Department will
continue to exceed the staffing goal of one officer per 1,000 residents and the Fire Department will continue to provide four firefighter personnel per engine at all five fire stations.
General Fund expenditures total $112,494,154, which represents a 7.8% increase over the prior fiscal year. x Sheriff’s Office ($51,423,077)is increasing by 8.0% over the prior year due to inflationary adjustments in the contract with Riverside County. The budget reflects 117 Sworn Deputies, which includes continued patrol coverage of 210 hours per day, and full staffing for the Metro and CORE Teams. The budget also includes the replacement of two motorcycles.
x Fire Department ($13,649,632) is increasing by 7.7% due to inflationary adjustments in the contract with Riverside County. The total Fire budget of $27,136,371 is offset by the Structural Fire Tax Credit of $13,486,739. The department employs 79 positions and provides four firefighters per engine/truck staffing model.
x Non-Safety Departments ($46,852,809) represent a -0.2% decrease over the prior year, due to reductions in the operations, maintenance, project employees and capital outlay expenditures, which more than offset the costs ofthe reclassification of several positions, the 3% cost of living adjustment and increased Cafeteria benefit in accordance with the City’s negotiated labor agreements. x Non-Departmental ($568,636) includes the Staffing Continuity Reserve, PERS Replacement Benefit and Property Tax Administrative fees.
Operating Transfers Out & One-Time Payments
This category of expenditures reflects funds that are transferred to meet the Debt/Liability Paydown Strategy, to the Capital Improvement Program and the Fire Facility Acquisition Fund. x Fire Facility Acquisition Fund ($1,000,000) to repay a portion of the $5 million advance from this fund in FY25-26 in an effort to expedite the paydown of the City’s unfunded pension liability. 12 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
x CalPERS Unfunded Pension Liability ($9,349,256) to fully fund the City’s CalPERS pension program and further reduce the City’s annual pension costs by an estimated $6 million per year. x Section 115 Pension Trust ($7,500,000)to augment the Trust for the potential payoff of future CalPERS unfunded pension liabilities, in accordance with Budget Policy XIII – Pension Funding.
Overall, the General Fund remains structurally balanced, with revenues exceeding expenditures, and reserves are fully-funded each year of the ensuing five-year financial forecast. The City continues to budget in a conservative, yet realistic, manner while keeping close watch on several economic indicators. As conditions change throughout the fiscal year, adjustments to revenue or expenditure budgets will be recommended to the City Council for their approval.
MEASURE S FUND
With the approval of a one-cent transactions and use tax measure in November 2016, the Measure S Fund was established to account for this new revenue source. Fiscal Year 2026-27 Measure S revenue is projected to be $40,708,524.
Measure S appropriations of $48,419,650 reflect the priorities established in Budget Policy IV – Transactions and Use Tax Funding.
Public Safety (50%)
The budget includes $24,075,985 of Measure S funding to support the contracts for the Sheriff and Fire Departments. Measure S provides for 11 Sheriff’s Deputies, staffing for Fire Station No. 95, and funding for the future replacement of the fire ladder truck, inspection vehicles and additional funding to further support Public Safety expenditures Asset Management/Investment (7%)
As noted in Council’s appropriation guidelines for Measure S, ensuring adequate reserves are setaside for the future replacement of City-owned assets is critical to the long-term viability of the City’s operations. For Fiscal Year 2026- 27, Measure S is contributing $2,500,000 to the Facilities Replacement Fund, and $1,000,000 to the Streets Maintenance Fund.
Capital Improvement Program (9%)
The budget includes an additional $4,296,247 appropriation in Fiscal Year 2026-27 to complement the current year budget of $32,687,242 to fund multiple CIP projects. The influx of Measure S funding has allowed the City to leverage other funding sources, such as Development Impact Fees and various grant funds, to complete projects in a timelier manner.
13 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
Major Projects funded by Measure S include:
x Fire Station 73 Gym/Garage –to construct a gym, storage room and a second garage at the station to house the squad and additional vehicles.
x La Paz Road Roundabout – to redesign and reconstruct the existing roundabout on Ynez Road at the intersection of La Paz Road.
x Mercedes Street Sidewalk – to construct the missing segment of sidewalk on the west side of Mercedes Street between Main Street and 160 feet south of 3rd Street. x Playground Equipment Enhancement and Safety Surfacing – to fund the playground enhancements/safety surfacing replacement at the Mike Naggar, Crowne Hill and Pauba Ridge Parks.
General/Community Services (34%)
The Temecula Community Services District (TCSD) has historically been funded with voter-approved Measure C funding and program-related revenue. Measure S funding is used to augment Measure C, in order to maintain the award-winning programs, activities and events TCSD provides to the citizenry. x TCSD Operations contribution - $14,675,947
x Library contribution - $1,774,877
x Enhanced Custodial Services - $96,594
The ending fund balance within the Measure S Fund is projected to be $26,201,199, which will carry-forward to the ensuing fiscal year. Over the forecasted five-year period, Measure S is projected to have adequate resources to fund public safety, asset management, capital projects and general services.
OTHER GENERAL FUNDS
Fund 006 –Fire Facility Acquisition Fund: This fund was established in Fiscal Year 2021-22 to accumulate resources to acquire and/or construct property for a future Fire Station. At their May 27, 2025 meeting, the City Council approved an advance of $5,000,000 from this fund to accelerate the paydown of the City’s unfunded pension liability. The $5 million advance will be repaid from the savings generated by paying down the unfunded pension liability, with $1 million appropriated in FY26-27. The ending fund balance is projected to be $3,301,210 for Fiscal Year 2026-27.
Fund 110 –Community Reinvestment Program Fund: This fund was established in Fiscal Year 2021-22 to provide grant funding to support the local economy to rebound from the global pandemic. A total of $14,080,000 was transferred into this fund from available General Fund balance. The Council approved six funding categories, including: (1) Business Support ($3,080,000); (2) Non-Profit Support ($1,000,000); (3) Homeless Services ($1,000,000); (4) Housing Assistance ($5,500,000); (5) Behavioral Health Services ($1,500,000) and (6) Higher Education/Workforce Development ($1,000,000). 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.
14 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
MAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law. The City has several Special Revenue Funds. The major Special Revenue funds are highlighted below.
Fund 100 -Gas Tax: Gas Tax revenue is projected to be $3,329,012 which reflects an increase of 1.8% as the volume of gasoline sales is projected to increase slightly. These funds are transferred to the General Fund to support street and road maintenance.
Fund 102 – Road Maintenance Rehabilitation Account (RMRA): Per the Road Repair and Accountability Act of 2017 (SB1-Beall), increased gas tax and vehicle registration fees were imposed to fund street and road projects and other transportation uses Statewide. RMRA revenue is projected to be $3,307,005, which is an increase of 5.7%.
These funds are allocated to the Pavement Rehabilitation Capital Improvement Project.
Fund 103 – Street Maintenance: This fund was established in Fiscal Year 2018-19 to accumulate resources for the future replacement of streets and roads throughout the City. Measure S contributes annually to this fund, which has a projected Fiscal Year 2026-27 ending balance of $5,863,309. FY2026-27 appropriations of $224,356 will partially fund the Overland Drive Widening capital project.
Fund 105 – NPDES In Lieu Fees: This fund was established in Fiscal Year 2019-20 to account for the collection of In Lieu fees associated with the National Pollutant Discharge Elimination System (NPDES). Revenue is received as private development subject to NPDES requirements occur. There are no expenditures programmed for 2026-27 and the ending fund balance is projected to be $195,425.
Fund 106 – Uptown Temecula New Streets In-Lieu Fees: This fund was established in Fiscal Year 2019-20 in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In-Lieu Fee. Developers within the Specific Plan who cannot build new streets will be charged the In Lieu Fee. No activity is anticipated in this fund for 2026-27, and the ending fund balance totals $1,244,370.
Fund 120 –Development Impact Fees (DIF): DIF revenue is projected to be $13,233,663, which reflects an increase of 231.6% due to development activity in the Altair, Elderberry Park and Sommer’s Bend developments. DIF revenue varies from year-to-year as it is based on anticipated development projects. DIF Revenues are transferred to the CIP to fund capital projects. Fiscal Year 2026-27 ending fund balance is projected to be $13,040,554.
Fund 125 – Public, Education & Government (PEG): PEG Fund revenues are received from local cable operators for the sole purpose of supporting the access facilities within the City. PEG Revenues are projected to be $161,436, which will be spent on various technology equipment used to support the broadcast of City Council meetings and events. Fiscal Year 2026-27 ending fund balance is projected to be $991,499.
Fund 140 – Community Development Block Grant (CDBG): CDBG grant revenues are received from the U.S.
Department of Housing and Urban Development (HUD). Fiscal Year 2026-27 revenue is projected to be $986,807 and will support operations, community grants and capital projects. 15 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
Fund 145– Temecula Energy Efficiency Asset (TEAM)Fund: This fund was established to capture energy efficiency rebates to be used to fund future energy efficiency projects. In Fiscal Year 2020-21, the City received a rebate of $640,754 for the acquisition of street lights and conversion to LED bulbs. There is no activity programmed for Fiscal Year 2026-27, and the ending fund balance is projected to be $155,805.
Fund 150 – AB2766 Motor Vehicle Subvention Fund: This fund was established to account for subvention funds used to implement programs/projects to reduce air pollution from motor vehicles. Fiscal Year 2026-27 revenue is projected to be $170,028. The majority of these funds are programmed for capital projects, including the Citywide Bike Lane and Trail Program, and to support the Clean Cities Coalition. Fiscal Year 2026-27 ending fund balance is projected to be $95,837.
Fund 160 – Supplemental Law Enforcement Services Fund: This fund was established to account for state grant funds to assist cities in delivering front-line law enforcement services. Fiscal Year 2026-27 revenue is projected to be $283,502 and will be transferred to the General Fund to support law enforcement.
Fund 165 – Affordable Housing Fund: The Affordable Housing Fund reflects the housing-related activities of the former Temecula Redevelopment Agency. Total Revenue for Fiscal Year 2026-27 of $863,091 includes the State Department of Finance allocation of $250,000 designated for the administration of the wind down of redevelopment obligations, plus $238,091 in investment interest, and $375,000 for the anticipated sale of an affordable housing unit re-acquired by the City in Fiscal Year 2025-26. Expenditures reflect the ongoing administration of the City’s Affordable Housing program.
Fund 170 – Measure A: Measure A revenue is projected to be $4,578,301 which reflects a 7.9% increase over the prior year. This revenue is restricted for use on local streets and roads and is programmed to support street and road maintenance. Fiscal Year 2026-27 ending fund balance is projected to be $1,538,439.
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the funding of goods and services provided by one department to other benefitting departments on a cost-reimbursement basis.Additionally, the City maintains several Replacement Funds designed to accumulate resources for the future replacement of City equipment, technology, and facilities.
Fund 300 – Insurance: Projected expenses total $3,891,654, which covers the cost of administering the City’s liability and property insurance programs. The projected fund balance of $2,562,829 exceeds the desired reserve level of $1.5 million, which is three times the City’s self-insured retention of $500,000 per incident.
Fund 305 – Workers’ Compensation: Projected expenses total $627,245, which covers the cost of administering the City’s self-insured Workers’ Compensation program. The projected fund balance is $1,310,593and nearly meets the desired balance of $1.5 million, which represents three times the City’s self-insured retention of $500,000 per incident.
Fund 310 – Vehicles and Equipment: Projected expensestotal $924,527 to replace several fleet vehicles and heavy equipment that have reached the end of their useful lives. The projected fund balance is $5,119,660. Replacements planned for 2026-27 include a Construction Dump Truck, a Backhoe, two Ford F-250s, and one Ford F-350. 16 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
Fund 320 – Information Technology: Projected expenses total $7,066,816, which provides for the management of the City’s computers, audio-visual equipment, cyber security, and telephone systems. The projected fund balance is $1,238,806.
Fund 325 – Technology Replacement: Projected expenses total $526,158 to replace the City’s phone system, network switch, and to fund the annual computer replacement program. The projected fund balance is $4,121,708.
Fund 330 – Support Services: Projected expenses total $447,700, which provides for the management of the City’s central reception, printing and mail activities. The projected fund balance is $20,143.
Fund 335 – Support Services Replacement: Projected expenses total $72,200 to replace the Central Services copy machines and includes $42,200 in depreciation expenses. The projected fund balance is $362,222.
Fund 340 – Facilities: Projected expenses total $1,756,842, which provide for the operations and maintenance of the City’s buildings and parking structure. The projected fund balance is $7,842.
Fund 350 – Facility Replacement: Projected expenses total $1,945,434 for Capital Outlay to support the City Facilities Rehabilitation capital project and includes $87,338 in depreciation expenses. The projected fund balance is $4,498,686.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA)
Fund 380 – SARDA: Projected expenses total $7,422,458 primarily to pay debt service expenditures on the outstanding 2017A and 2017B Redevelopment Agency Tax Allocation Bonds.
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)
The Temecula Community Services District was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs and events. TCSD also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, and library services (known as Service Level Funds).
Combined revenue for TCSD totals $35,926,933, which reflects an increase of 5.7% over the prior year. The majority of the increase is from waste hauling assessments and Temecula Public Library operations. Combined expenditures for TCSD total $36,284,510 and reflect an increase of 0.6% due primarily to higher waste hauling costs reflected in the Service Level D (Refuse/Recycling) Fund.
Ending fund balance for TCSD is projected to be $4,745,036 for Fiscal Year 2026-27. 17 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
TCSD Operations, excluding the Service Levels and Library Funds, is projected over a five-year period, as summarized below.
The Five-Year Forecast shows the various revenue sources and projected operating expenditures, which are increasing between 1.9 – 3.4% per year. A long-term fiscal strategic plan is in progress to address the increased reliance on Measure S to balance this Fund into the future. In Fiscal Year 2026-27, TCSD operations will hold five authorized positions and 13 project positions vacant as part of the TCSD Workplan to curtail cost escalation.
CAPITAL IMPROVEMENT PROGRAM (CIP)
The City’s five-year Capital Improvement Program (CIP) is presented to the City Council under separate cover. This program provides a five-year plan for capital improvements that is updated annually to ensure compliance with the
program. The impact of capital projects on maintenance and operating costs were taken into consideration in the development of the operating budget.
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 adjacent table.
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.
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
18 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
Total funding for the Fiscal Years 2027-31 CIP program
reflects 64% from outside funding sources, with the
remaining 36% provided by various local 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 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 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 Proposed O&M Impacts are included in the Proposed 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
19 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
2026-27 AUTHORIZED STAFFING
Total authorized Full Time Equivalent (FTE) positions total 202.2 authorized positions, including five Council Members and 6 unfundedpositions for Fiscal Year 2026-27. The total reflects no change in the number of positions compared to the prior year.
Public Safety personnel is provided through contracts with Riverside County and CAL FIRE. A total of 117 sworn Sheriff’s Deputies and 18 Community Service Officers are included in the Sheriff’s budget, and a total of 79 personnel are reflected in the Fire Department budget for Fiscal Year 2026-27.
In addition to the Authorized Positions, the City employs three Limited-Term-Assignment positions related to the implementation of a new Human Resources/Payroll software system. A significant number of part-time, non- benefitted Project employees are also employed to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2026-27, an estimated 88full-time equivalents will be hired as seasonal and part-time support, which is a reduction of two full-time equivalent positions from the prior year. 20 City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
TRANSMITTAL MESSAGE
CONCLUSION
In conclusion, the City of Temecula is in a solid fiscal position with the General Fund balanced and all reserves fully funded not only in Fiscal Year 2026-27 but throughout the ensuing five-year period. The Capital Improvement Program is robust, with 69% of all Project Costs funded, and will deliver a wide array of improvements to infrastructure, facilities, affordable housing, enhanced parks, new trails and many other amenities the citizens of Temecula enjoy. With the ongoing support of the Council, the City accelerated its Debt/Liability Paydown Strategy and will become 100% debt- free by July 2026 with a fully-funded CalPERS Pension program.
I would like to express my appreciation to the City Council for providing the direction and support crucial to achieving the City’s goals. I would also like to recognize the contributions of City staff for not only creating a responsive operating budget, but also for their commitment to providing top quality services to all who live, work, and play in Temecula. I would like to give special thanks to the City’s Budget Team: Jennifer Hennessy, Director of Finance; Ward Komers, Assistant Director of Finance; Paula Majors, Fiscal Services Manager; and Catlin Dorset, Budget Manager for their long hours and dedication to the City and this budget process.
Sincerely,
Aaron Adams
City Manager
21 22
Capital Improvement Program
Fiscal Years 20ϮϳͲϮϬϯϭ City of Temecula
City Council
:ĞƐƐŝĐĂůĞdžĂŶĚĞƌ͕Mayor
DĂƚƚZĂŚŶ͕DĂLJŽƌWƌŽdĞŵ
ĂŬ^ĐŚǁĂŶŬ͕Council Member
:ĂŵĞƐ^ƚĞǁĂƌƚ, Council Member
ƌĞŶĚĞŶ ƵŬĞtĂƚƐŽŶ, Assistant City Manager
ZŽŶDŽƌĞŶŽ͕Public Works Director
Jennifer Hennessy, Finance Director
City of Temecula
41000 Main Street
Temecula, California 92590
(951) 694-6430
TemeculaCA.gov
23 Temecula Mayor Jessica Alexander was first elected in 2020 to serve on the City Council and re-elected in 2024. As a proud Marine Veteran and former New York Police Officer, Mayor Alexander is a strong advocate for public safety, improving the City’s infrastructure and roadways, and protecting the high quality of life that defines Temecula including its safe neighborhoods, beautifully landscaped parks, and family-friendly amenities.
“It is a profound honor to serve as Mayor, and I approach this responsibility grounded in service and shared hope for 2026.” She adds, “I am deeply committed to leading with compassion, integrity and a steadfast sense of duty that strengthens the heart of Temecula’s service-oriented community.” Mayor Alexander also values preserving the rural character of Temecula’s equestrian communities, along with the City’s overall picturesque appeal from the charm of Old Town to the scenic setting of Temecula Valley Wine Country.
“Temecula’s success lies in its extraordinary people, and I am dedicated to working collaboratively and diligently alongside my council colleagues for the well-being of our City and all its residents.” Jessica Alexander
Mayor
City of Temecula
24 INTRODUCTION......................................................................................................................... 9 Transmittal Message..................................................................................................................... 9 California Society of Municipal Finance Officers (CSMFO) Certificate of Award.......................... 17 City Organizational Chart.............................................................................................................. 18 Description of Levels..................................................................................................................... 19 Parameters for CIP Budget Cost Estimates................................................................................... 20 Description of Revenue Sources................................................................................................... 21 Capital Improvement Project List.................................................................................................. 26 SUMMARIES.............................................................................................................................. 29 Projected Revenue Summary........................................................................................................ 29 CIP Major Revenue Sources Graph............................................................................................... 32 CIP Expenditure Summary............................................................................................................ 33 Expenditure Summary by Project Type Chart............................................................................... 37 Capital Projects Summary – by Funding Source............................................................................ 38 Capital Projects Summary – by Project......................................................................................... 5 2 Summary of Operating & Maintenance Impacts.......................................................................... 62 CIRCULATION PROJECTS............................................................................................................63 Circulation Projects Location Map................................................................................................ 64 Butterfield Stage Road Storm Drain Improvements..................................................................... 65 De Portola Road/Jedediah Smith Road Roundabout Project........................................................ 66 Diaz Road Expansion..................................................................................................................... 67 I-15 / French Valley Parkway Improvements – Phase II................................................................ 69 I-15 / French Valley Parkway Improvements – Phase III............................................................... 71 I-15 / French Valley Parkway Improvements – Phase IV............................................................... 73 I-15 Congestion Relief................................................................................................................... 74 I-15 / State Route 79 South Ultimate Interchange........................................................................ 75 La Paz Road Roundabout Reconstruction..................................................................................... 77 Medians & Parkways – Citywide...................................................................................................78 Mercedes Street Sidewalk............................................................................................................. 79 Murrieta Creek Bridge at Overland...............................................................................................80
TABLE OF CONTENTS
City of Temecula
Fiscal Years 2027-2031
Capital ImprovementProgram
3 25
City of Temecula
Fiscal Years 2027-2031
Capital ImprovementProgram
TABLE OF CONTENTS
Overland Drive Extension Commerce Center................................................................................ 82 Overland Drive Widening.............................................................................................................. 83 Pavement Rehabilitation Program – Citywide.............................................................................. 84 Rancho California Road Median Improvements........................................................................... 86 Traffic Signal – Equipment Enhancement Program – Citywide..................................................... 87 Traffic Signal – Installation – Citywide.......................................................................................... 88 Ynez Road Improvements – Phase I.............................................................................................. 9 0 HOUSING................................................................................................................................... 91 Housing Projects Location Map.................................................................................................... 92 Habitat for Humanity – Old Town Units........................................................................................ 93 Las Haciendas Affordable Housing Project................................................................................... 94 Uptown Temecula Affordable Housing Site.................................................................................. 95 Vine Creek Affordable Housing Project......................................................................................... 96 INFRASTRUCTURE/OTHER PROJECTS......................................................................................... 97 Infrastructure Projects Location Map...........................................................................................98 American with Disabilities Act (ADA) Transition Plan Implementation........................................ 99 Auto Mall Wayfinding Signs.......................................................................................................... 100 Bike Lane and Trail Program – Citywide........................................................................................ 101 Bike Lane and Trail Program – Great Oak Trail Lighting................................................................ 103 Bike Lane and Trail Program – Temecula Creek South Side Trail.................................................. 104 Bike Lane Upgrades – Citywide..................................................................................................... 105 Bridge Maintenance...................................................................................................................... 106 City Facilities Rehabilitation.......................................................................................................... 107 City Facility Security...................................................................................................................... 108 City Security Camera System........................................................................................................ 109 Citywide Community Fire Protection Plan ...................................................................................110 Citywide Drainage Master Plan..................................................................................................... 111 Citywide Financial System Upgrade..............................................................................................112 Civic Center HVAC Upgrade ..........................................................................................................113 Community Recreation Center (CRC) Renovations....................................................................... 114 4 26
City of Temecula
Fiscal Years 2027-2031
Capital ImprovementProgram
TABLE OF CONTENTS
Community Wildfire Protection Plan............................................................................................ 1 15 Comprehensive General Plan Update........................................................................................... 116 Electric Vehicles Charging Station................................................................................................. 118 Fiber Optic Communications Systems – Citywide......................................................................... 119 Fire Station 73 Gym/Garage......................................................................................................... 120 Fire Station 84 Renovation............................................................................................................ 121 I-15/State Route 79 South Interchange Enhanced Landscaping................................................... 122 Interstate 15 Corridor Branding and Visioning Improvements..................................................... 123 Library Alternative Emergency Operations Center Enhancements............................................... 124 Library Technology Enhancements............................................................................................... 1 25 Local Roadway Safety Plan Update...............................................................................................126 Long Canyon Creek Park to Ynez Trail ..........................................................................................127 Margarita Recreation Center........................................................................................................ 128 Mary Phillips Senior Center Enhancement and Renovation......................................................... 129 Medians & Traffic Calming Improvements – Citywide.................................................................. 130 Murrieta Creek Improvements..................................................................................................... 131 Nicolas Road Multi-Use Trail Extension........................................................................................ 1 33 Old Town Parking Improvements..................................................................................................134 Old Town Temecula Parklets Program.......................................................................................... 135 Pavement Management Program Update.................................................................................... 136 Pedestrian Ramp Upgrades – Citywide......................................................................................... 137 Santa Gertrudis Creek Phase II – Margarita Under-Crossing........................................................ 138 Sidewalks – Citywide..................................................................................................................... 139 Sidewalks – Old Town Improvements........................................................................................... 140 Sidewalks – Pauba Road................................................................................................................ 141 Sixth Street Improvements........................................................................................................... 142 South Side Senior Center for Active Adults................................................................................... 14 3 Storm Drain Pipe Lining................................................................................................................. 144 Traffic Signal -– Pedestrian Signal Equipment Upgrade Phase 2 -– Citywide................................ 145 Traffic Signal -– Safety Lights and Signal Communications Upgrade – Citywide........................... 146 5 27
City of Temecula
Fiscal Years 2027-2031
Capital ImprovementProgram
TABLE OF CONTENTS
Traffic Signal Fiber Optic Extension............................................................................................... 147 Utility Undergrounding – Citywide...............................................................................................148 PARKS AND RECREATION PROJECTS.......................................................................................... 149 Parks and Recreation Projects Location Map................................................................................ 150 Children’s Museum Enhancement Project.................................................................................... 151 Community Recreation Center Splash Pad & Shade Structures................................................... 152 CRC Pool Cantilever Restoration ..................................................................................................153 Dog Park Renovation..................................................................................................................... 154 Eagle Soar Splash Pad Rehabilitation............................................................................................155 Empire Creek Improvements........................................................................................................ 156 Harveston Community Park Building Renovations and Expansion............................................... 157 Infill Recreational Amenities......................................................................................................... 158 Long Canyon Creek Park Restrooms............................................................................................. 15 9 Mike Naggar Park Pickleball Court Conversion ............................................................................160 Park Restroom Renovations, Expansion and Americans with Disabilities Act (ADA) Improve͘͘͘͘͘ 161 Parks Improvement Program........................................................................................................ 162 Pickleball Courts............................................................................................................................ 163 Playground Equipment Enhancement & Safety Surfacing............................................................ 164 Ronald Reagan Sports Park Hockey Rink....................................................................................... 166 Ronald Reagan Sports Park Skate Park......................................................................................... 167 Ronald Reagan Sports Park Trail ..................................................................................................168 Santiago Site – Community Garden .............................................................................................169 Sports Court Resurfacing.............................................................................................................. 170 Sports Field Lighting – Light Emitting Diode (LED) Conversion..................................................... 171 Uptown Temecula Sports Park...................................................................................................... 172 Vail Ranch Park Restrooms........................................................................................................... 173 PROJECTS FUNDED BY COMMUNITY FACILITIES DISTRICT BONDS PROJECTS............................. 175 Projects Funded by Community Facilities District Bonds Project Locator Map............................ 176 Butterfield Stage Road Extension................................................................................................. 177 Nicolas Road Extension & Improvements..................................................................................... 178 6 28
City of Temecula
Fiscal Years 2027-2031
Capital ImprovementProgram
TABLE OF CONTENTS
FUTURE YEAR PROJECTS............................................................................................................ 179 APPENDIX.................................................................................................................................. 181 Locator Map.................................................................................................................................. 181 Summary of Completed Projects..................................................................................................182 Glossary of Terms.......................................................................................................................... 184 Summary of Affordable Housing Investment................................................................................ 191 Fiscal Year 2026-27 Debt Obligations...........................................................................................193 Status of Pavement Management Program.................................................................................. 194 Index............................................................................................................................................. 195 7 29
8 30
Eden
Project
Number
Munis Account
Number Project Title
Responsible
Department Project Type
817 AH20-01 LAS HACIENDAS AFFORDABLE HOUSING PROJECT COMDV Housing 820 AH20-02 VINE CREEK AFFORDABLE HOUSING PROJECT COMDV Housing 827 AH22-01 HABITAT FOR HUMANITY - OLD TOWN UNITS COMDV Housing AH23-01 UPTOWN TEMECULA AFFORDABLE HOUSING SITE COMDV Housing 703 CD18-01 BIKE LANE AND TRAIL PROGRAM - CITYWIDE COMDV Infrastructure 772 CD23-01 COMMUNITY WILDFIRE PROTECTION PLAN COMDV Infrastructure CD24-01 OLD TOWN TEMECULA PARKLETS PROGRAM COMDV Infrastructure CD26-01 CITYWIDE COMMUNITY FIRE PROTECTION PLAN COMDV Infrastructure 790 CM22-01 AUTO MALL WAYFINDING SIGNS CITY MGR Infrastructure 724 FN19-01 CITYWIDE FINANCIAL SYSTEM UPGRADE FN Infrastructure IT24-01 LIBRARY TECHNOLOGY ENHANCEMENTS ITSS Infrastructure IT24-02 LIBRARY ALTERNATE EMERGENCY OPERATIONS CENTER ENHANCEMENTS ITSS Infrastructure 662 PW04-08 I-15/STATE ROUTE 79 SOUTH ULTIMATE INTERCHANGE PW Circulation 735 PWMC-22 MURRIETA CREEK IMPROVEMENTS PW Infrastructure 723 PW15-11 BUTTERFIELD STAGE ROAD EXTENSION PW CFD Funded 726 PW16-01 I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE II PW Circulation 648 PW16-05 MURRIETA CREEK BRIDGE AT OVERLAND PW Circulation 602 PW16-06 OVERLAND DRIVE EXTENSION COMMERCE CENTER PW Circulation 711 PW17-01 CITY SECURITY CAMERA SYSTEM ITSS Infrastructure 694 PW17-15 OLD TOWN PARKING IMPROVEMENTS PW Infrastructure 690 PW17-19 I-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING PW Infrastructure 692 PW17-21 MARGARITA RECREATION CENTER PW Infrastructure 521 PW17-25 DIAZ ROAD EXPANSION PW Circulation
612 PWAT-27
AMERICANS WITH DISABILITIES ACT (ADA) TRANSITION PLAN
IMPLEMENTATION PW Infrastructure
609 PW19-02 I-15 CONGESTION RELIEF PW Circulation
728 PW19-03 I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE III PW Circulation 732 PW19-04 SANTA GERTRUDIS CREEK PHASE II - MARGARITA UNDER-CROSSING PW Infrastructure 125 PW19-05 CHILDREN'S MUSEUM ENHANCEMENT PROJECT TCSD Parks/Recreation 730 PW19-07 COMMUNITY RECREATION CENTER (CRC) RENOVATIONS PW Infrastructure 720 PW19-11 BIKE LANE AND TRAIL PROGRAM - TEMECULA CREEK SOUTH SIDE TRAIL PW Infrastructure 697 PW19-13 FIRE STATION 73 GYM/GARAGE Fire Infrastructure 687 PW19-14 FIRE STATION 84 RENOVATION Fire Infrastructure 722 PW19-16 CITYWIDE DRAINAGE MASTER PLAN PW Infrastructure 783 PW20-11 OVERLAND DRIVE WIDENING PW Circulation
782 PW20-13 MARY PHILLIPS SENIOR CENTER ENHANCEMENT AND RENOVATION PW Infrastructure 604 PW20-14 NICOLAS ROAD EXTENSION & IMPROVEMENTS PW CFD Funded 777 PW21-02 COMPREHENSIVE GENERAL PLAN UPDATE COMDV Infrastructure 787 PW21-03 PICKLEBALL COURTS PW Parks/Recreation
205 PW21-07 COMMUNITY RECREATION CENTER SPLASH PAD & SHADE STRUCTURES PW Parks/Recreation 683 PW21-09 ELECTRIC VEHICLES CHARGING STATION PW Infrastructure 207 PW21-14 DOG PARK RENOVATION PW Parks/Recreation
768 PW21-16 BIKE LANE AND TRAIL PROGRAM - GREAT OAK TRAIL LIGHTING PW Infrastructure 223 PW22-06 RONALD REAGAN SPORTS PARK HOCKEY RINK PW Parks/Recreation 222 PW22-07 RONALD REAGAN SPORTS PARK SKATE PARK PW Parks/Recreation Capital Improvement Program - Project List
(Sorted by Account Number)
City of Temecula
Fiscal Years 2027-2031
apital Improvement Program
26 31
Eden
Project
Number
Munis Account
Number Project Title
Responsible
Department Project Type
Capital Improvement Program - Project List
(Sorted by Account Number)
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225 PW22-11 HARVESTON COMMUNITY PARK BUILDING RENOVATIONS AND EXPANSION PW Parks/Recreation 221 PW22-12 UPTOWN TEMECULA SPORTS PARK PW Parks/Recreation 797 PW23-01 DE PORTOLA ROAD / JEDEDIAH SMITH ROAD ROUNDABOUT PROJECT PW Circulation 534 PW23-02 YNEZ ROAD IMPROVEMENTS - PHASE I PW Circulation 791 PW23-04 RANCHO CALIFORNIA ROAD MEDIAN IMPROVEMENTS PW Circulation 226 PW23-05 INFILL RECREATIONAL AMENITIES PW Parks/Recreation PW23-09 PAVEMENT MANAGEMENT PROGRAM UPDATE PW Infrastructure PW23-10 BIKE LANE UPGRADES - CITYWIDE PW Infrastructure PW23-11 PEDESTRIAN RAMP UPGRADES - CITYWIDE PW Infrastructure PW23-12
TRAFFIC SIGNAL - PEDESTRIAN SIGNAL EQUIPMENT UPGRADE PHASE 2 - CITYWIDE PW Infrastructure
PW23-13
TRAFFIC SIGNAL - SAFETY LIGHTS AND SIGNAL COMMUNICATIONS UPGRADE- CITYWIDE PW Infrastructure
792 PW23-15 BUTTERFIELD STAGE ROAD STORM DRAIN IMPROVEMENTS PW Circulation PW23-20 EMPIRE CREEK IMPROVEMENTS PW Parks/Recreation
PW24-05 SOUTH SIDE SENIOR CENTER FOR ACTIVE ADULTS PW Infrastructure PW25-01 TRAFFIC SIGNAL FIBER OPTIC EXTENSION PW Infrastructure PW25-03 LOCAL ROADWAY SAFETY PLAN UPDATE PW Infrastructure PW25-04 LA PAZ ROAD ROUNDABOUT RECONSTRUCTION PW Circulation PW25-09 MERCEDES STREET SIDEWALK PW Circulation
PW26-01 EAGLE SOAR SPLASH PAD REHABILITATION PW Parks/Recreation PW26-02 SANTIAGO SITE - COMMUNITY GARDEN PW Parks/Recreation PW26-04
(NEW) CIVIC CENTER HVAC SYSTEM UPGRADE PW Infrastructure PW26-05
(NEW) CRC POOL CANTILEVER RESTORATION PW Parks/Recreation PW26-06
(NEW) RONALD REAGAN SPORTS PARK TRAIL PW Parks/Recreation PW26-07
(NEW) LONG CANYON CREEK PARK TO YNEZ TRAIL PW Infrastructure PW28-99 I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE IV PW Circulation PWBM-05 BRIDGE MAINTENANCE PW Infrastructure
PWBV-24 INTERSTATE 15 CORRIDOR BRANDING AND VISIONING IMPROVEMENTS PW Infrastructure 789 PWFO-21 FIBER OPTIC COMMUNICATIONS SYSTEMS – CITYWIDE PW Infrastructure 701 PWFR-11 CITY FACILITIES REHABILITATION PW Infrastructure 779 PWFS-08 CITY FACILITY SECURITY PW Infrastructure
622 PWMP-09 MEDIANS & PARKWAYS - CITYWIDE PW Circulation 785 PWNT-25 NICOLAS ROAD MULTI-USE TRAIL EXTENSION PW Infrastructure 766 PWOT-03 SIDEWALKS - OLD TOWN IMPROVEMENTS PW Infrastructure PWOT-03-
01/PW22-16 SIXTH STREET IMPROVEMENTS PW Infrastructure
155 PWPE-07
PARK RESTROOMS RENOVATIONS, EXPANSION AND AMERICANS WITH DISABILITIES ACT (ADA) IMPROVEMENTS PW Parks/Recreation 27 32
Eden
Project
Number
Munis Account
Number Project Title
Responsible
Department Project Type
Capital Improvement Program - Project List
(Sorted by Account Number)
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PWPE-07-02/
PW23-06 VAIL RANCH PARK RESTROOMS PW Parks/Recreation
PWPE-07-03/
PW23-18 LONG CANYON CREEK PARK RESTROOMS PW Parks/Recreation 120 PWPG-13 PLAYGROUND EQUIPMENT ENHANCEMENT & SAFETY SURFACING PW Parks/Recreation 130 PWPI-14 PARKS IMPROVEMENT PROGRAM PW Parks/Recreation 655 PWPR-01 PAVEMENT REHABILITATION PROGRAM - CITYWIDE PW Circulation PWSD-23 STORM DRAIN PIPE LINING PW Infrastructure
113 PWSL-12 SPORTS FIELD LIGHTING - LIGHT EMITTING DIODE (LED) CONVERSION PW Parks/Recreation 141 PWSR-15 SPORTS COURT RESURFACING PW Parks/Recreation PWSR-15-01 MIKE NAGGAR PARK PICKLEBALL COURT CONVERSION PW Parks/Recreation 708 PWSW-02 SIDEWALKS - CITYWIDE PW Infrastructure
PWSW-02-02 SIDEWALKS-PAUBA ROAD PW Infrastructure
704 PWTC-20 MEDIANS & TRAFFIC CALMING IMPROVEMENTS - CITYWIDE PW Infrastructure 680 PWTE-19 TRAFFIC SIGNAL - EQUIPMENT ENHANCEMENT PROGRAM - CITYWIDE PW Circulation 682 PWTS-06 TRAFFIC SIGNAL - INSTALLATION - CITYWIDE PW Circulation 776 PWUG-04 UTILITY UNDERGROUNDING - CITYWIDE PW Infrastructure 28 33
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
TRANSMITTAL MESSAGE
May 21, 2026
Members of the City Council:
It is with great pleasure that I submit the City of Temecula’s Capital Improvement Program (CIP) Budget for Fiscal Years 2026-27 through 2030-31. This document is the result of several internal CIP review meetings, which incorporates previous City Council direction and feedback obtained from each of the City’s Commissions. Staff has analyzed each project for feasibility, necessity, funding sources, and timing. All departments were involved in the process and contributed significantly to the discussions, resulting in a comprehensive Five-Year Capital Improvement Program. All projects presented in this five-year budget have been carefully programmed to ensure the community’s capital improvement needs are met both now and in the future.
CITY OF TEMECULA PROFILE AND DEMOGRAPHICS
The City of Temecula is a dynamic community located approximately 60 miles north of San Diego, California. The City extends across 30 square miles of gently rolling hills and comprises approximately 113,618 residents from diverse cultural backgrounds.
Temecula’s residents enjoy one of the finest lifestyles Southern California has to offer.
Environmental and residential factors produce a beautiful setting that attracts young, well- educated families to homes that are inexpensive by Southern California standards. Geography contributes to the City’s population and retail
growth from San Diego and Orange Counties.
Temecula’s leadership has approached
economic growth from a qualitative
standpoint, providing Temecula with a
favorable share of the region’s higher paying
and high technology career opportunities. The
City’s average income levels are higher than
the surrounding region, the educational
performance of its young people is above the
State average, and Temecula has been
recognized as one of Nation’s safest cities.
Population
113,618
42 City
Parks
329 Miles
of Streets
29 K-12
Schools
Average
Income
$166,346
Median
Home Price
$759,000
(Apr’26)
Unemployment
Rate 4.4%
(Mar’26)
9 34
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
FISCAL YEARS 2027-2031 CIP HIGHLIGHTS
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 adjacent table.
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 local 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.
During the CIP process this year, several high-profile projects required additional funding, due to rising costs and higher than anticipated construction bids. The Public Works department collaborated with the City Manager’s Office and the Budget Team to identify projects that could be reduced, shifted out to a future year, or be cancelled. The results of this analysis are summarized below:
3 Projects had funding reductions totaling $315,694
10 35
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
1 Project moved to Future Years (beyond FY30-31) totaling $347,255 1 Project was cancelled totaling $750,000
21 Projects requested additional funding, totaling $33,957,635 of which $14,563,878 has an unspecified funding source.
53 Projects remained unchanged
As part of the development of the Capital Improvement Program budget, each project is evaluated to identify any ongoing impacts to the Operating Budget. The amounts identified in the table below are incorporated into the Proposed Operating Budget and the Five-Year Financial Projections.
11 36
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
LOCAL ECONOMY AND LEGISLATIVE IMPACTS
Local Economy
As the economic indicators noted above have improved over 2025, the impact to the local economy is evident in the retail activity and sales tax trends. Sales Tax revenue is projected to continue to grow at a modest 2.0% next fiscal year, as both national retailers and local entrepreneurs continue to invest in Temecula by opening businesses, undergoing expansion projects and starting new construction. Currently, there are nine new businesses slated to open soon, including a trampoline park, and multiple retailers and restaurants.
With Temecula’s regional shopping mall, Old Town district, and auto mall, shoppers from the entire Temecula Valley region contribute to the City’s sales tax base. Temecula residents generated $36,988 in sales tax per capita in 2025, which far outpaced neighboring cities and statewide averages.
Source: HdL Companies
12 37
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Legislative Impacts
The City of Temecula actively follows state and federal legislative proposals each year and works closely with the League of California Cities and the National League of Cities to stay informed and engaged to ensure the City supports legislation that aligns with the City’s local legislative platform guiding principles:
I. Preservation of Local Control - Support measures that preserve and protect the City’s general law powers and duties to enact legislation and policy direction concerning local affairs.
Oppose measures that preempt local authority.
II. Promotion of Fiscal Stability - Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City’s revenue base. Oppose measures that mandate costs with no guarantee of local reimbursement or offsetting benefit. Oppose measures that shift local funds to the county, state, or federal government, without offsetting benefit.
III. Support Funding Opportunities - Support measures that allow the City to compete for its fair share of regional, state and federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, state and federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards.
Recent legislation that potentially impacts the City’s operations include the following:
Governor Newsom’s proposed 2026-27 budget makes significant reductions to the Homeless Housing, Assistance and Prevention (HHAP) grant program. Funding for the program is being reduced by one-half of its historic funding level. Reducing funding to this level will significantly impact shelter capacity, rental assistance, and the development of supportive housing.
California Proposition 36 – Homelessness, Drug Addiction, and Theft Reduction Act was passed on November 5, 2024, and became effective December 18, 2024. This new law allows felony charges for certain repeat theft and drug offenses—including fentanyl possession—reversing portions of Proposition 47. While Temecula is a contract City, Proposition 36 and its implementation impacts the City. Local governments are encouraging lawmakers to approve a $400 million budget request to fund Proposition 36.
Senate Bill 707 Open Meetings: Meeting and Teleconference Requirements – SB 707 was signed into law on October 3, 2025, and became effective January 1, 2026. This new law updates public meeting rules for local agencies, focusing on enhanced teleconferencing, increased accessibility, and, for many, mandatory agenda translation into multiple languages. 13 38
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Assembly Bill 1383 Public Employees’ Retirement Benefits: Safety Members – AB 1383 is a bill in the California Legislature that addresses public employees’ retirement benefits, specifically for safety members (such as certain law enforcement, fire, and other designated public safety roles) under the Public Employees’ Retirement Law (PERL). Currently, PERL — and the California Public Employees’ Pension Reform Act of 2013 (PEPRA) — set rules for how defined benefit pensions are calculated, including factors like final compensation, credited service, and retirement age. AB 1383 proposes adjustments to these provisions for safety members, potentially modifying eligibility criteria, benefit formulas, or retirement age requirements.
CIP BUDGET DEVELOPMENT PROCESS
Each year in January, the City begins the annual Capital Improvement Program budget process with the review of revenue projections and funding sources available for capital projects. The Community Development, Public Works and Fire Departments review the City’s projected development activity and corresponding permit fees, development impact fees and related revenues. Grant opportunities are identified as well as available funding from the various City funds. Once all funding sources have been identified, departments review and update their respective capital projects.
During the March/April timeframe, all departments participate in an evaluation of the requested projects. Management evaluates project priorities to ensure the City’s strategic priorities and goals are met. Additionally, management reviews alternative funding options for the requested projects to ensure eligibility and availability of the request funding sources.
Additionally, Finance staff holds Budget Engagement Sessions with each of the City’s commissions to gain feedback on budget priorities.
In May, the Annual Operating and Capital Improvement Program Budgets are presented to the City Council during their Budget Workshop. Any recommended changes from the workshop will be incorporated into the Final Budget, scheduled to be considered by the City Council at their June 9, 2026, meeting.
Final
Budget
Adoption
(June 9th)
Council
Budget
Workshop
(May 21st)
Prepare
Preliminary
CIP Budget
(Apr)
Evaluate
Funding
Options
(Mar/Apr)
Update
Project
Requests
(Feb/Mar)
Update
Revenue
Forecasts
(Jan)
14 39
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
CAPITAL BUDGET POLICIES
The purpose of the CIP Budget document is to serve as a planning tool, which coordinates the financing and scheduling of major projects undertaken by the City. The CIP Budget document has been prepared in accordance with generally accepted accounting principles. This document is dynamic and is revised annually to address changing needs, priorities, and financial conditions.
The capital improvements presented in this document include major projects which exceed $30,000 in cost, have long-term life spans, and are generally non-recurring. Each project cost is identified based on current year estimates. Operating and maintenance costs associated with the projects are projected with a 2% annual inflator and are reflected in the City of Temecula’s Annual Operating Budget.
The City’s Planning Commission reviews all capital projects for consistency with the General Plan as required by California Government Code Section 65401 and provides its findings to the Council prior to the adoption of the Final Capital Improvement Program.
Amendments to the Capital Improvement Program up to $100,000 may be authorized by the City Manager. Any expenditure of funds in excess of $100,000 requires City Council action.
CORE VALUES / STRATEGIC PRIORITIES
The City Council adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The Temecula 2040 Plan is a living document that reflects the vision and long-term goals of the City.
As Temecula continues to grow and mature, the Temecula 2040 Plan will be a crucial part of not only maintaining the City’s quality of life, but to take a proactive approach and identify specific community needs, goals, and possible improvements. The City of Temecula utilizes the QLMP to formulate and budget Citywide projects and programs. In addition, the QLMP is used to guide future planning, investment decisions, to provide vision and continuity for the next phase of the City's journey, and for continuous process improvement in partnership with Temecula's residents.
In an effort to incorporate the QLMP into the City’s budget process, the QLMP includes specific goals based on the Core Values of the QLMP.
The QLMP outlines 7 Core Values:
Healthy & Livable City
Economic Prosperity
Safe & Prepared Community
Sustainable & Resilient City
Accountable & Responsive City
Government
Transportation Mobility & Connectivity
Equity
15 40
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
All projects presented in the CIP are carefully programmed in concurrence with the City’s Quality of Life Master Plan to ensure the community’s capital improvement needs are met both now and in the future. The project budget sheets reference the specific Core Value(s) each project satisfies. The framework for the CIP is further defined in the City’s CIP fiscal policy to provide a structure within which fiscal decisions can be made and to optimize all available resources toward the accomplishment of the City’s Core Values as defined in the QLMP.
Projects in this document 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 project category have been assigned in accordance with the priority guidelines as shown on the Description of Priorities page herein. Additionally, since many projects in the CIP are conceptual in nature, a general outline for cost estimates are utilized as shown on the Parameters for CIP Budget Cost page herein.
CONCLUSION
The revenue estimates, although conservative, are strictly estimates. The actual amount of funding available for construction will vary based upon the state of the economy. The City’s major revenue sources are primarily received from various Federal grants, State grant programs, County programs and Special Districts. The City Council will be updated throughout the year on the status of projects and corresponding revenue sources.
The Fiscal Years 2027-31 Capital Improvement Program is a result of a total team effort of both City staff and City Council. These projects are intended to enhance the safety and quality of life for all citizens in the City of Temecula. I would like to thank staff and the City Council for all of the contributions that were made in developing the capital budget that will serve as the footprint for Temecula’s future.
Sincerely,
Aaron Adams
City Manager
16 41
City of Temecula
Fiscal Years 202ϳ-203ϭ
Capital Improvement Program
California Society of Municipal Finance Officers (CSMFO) Certificate of Award
CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS AWARD
The California Society of Municipal Finance Officers (CSMFO) recognizes those entities with highly professional budget documents with two levels of certificates. The first level is the “Meritorious Budget Award,” which requires the entity to meet a very specific list of criteria defined by CSMFO. The second level is the “Operating Budget Excellence Award,” which requires that the organization meet even higher criteria which effectively enhances the usability of the document.
In preparing the ensuing Fiscal Year Capital Budget, staff has once again followed CSMFO’s criteria. This document will be submitted to the CSMFO for the Fiscal Year 202ϲ-2ϳ budget award program. 17 42
City of Temecula
Fiscal YearƐ 202ϳ-20ϯϭ
ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ
City Organizational Chart
CITY ORGANIZATIONAL CHART
18 43
City of Temecula
Fiscal Years 202ϳ-203ϭ
Capital Improvement Program
Description of Levels
DESCRIPTION OF LEVEL RANKING
AND FUTURE YEARS PROJECTS
LEVEL I: The project is urgent and must be completed as soon as feasible. Failure to address the project may impact the health, safety, or welfare of the community or have a potential significant impact on the financial well-being of the City. The project must be initiated or financial opportunity losses may result.
LEVEL II: The project is important and addressing it is necessary. The project impacts safety, law enforcement, health, welfare, economic base, quality of life, and has been identified as a priority in the Quality of Life Master Plan.
LEVEL III: The project will enhance quality of life and will provide a benefit to the community. Completion of the project will improve the community by providing cultural, recreational, and/or aesthetic value, or is deemed as a necessary improvement to a public facility.
FUTURE YEARS
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.
19 44
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
Parameters for CIP Budget Cost Estimates
PARAMETERS FOR CIP BUDGET COST ESTIMATES
ADMINISTRATION COSTS AS A PERCENTAGE OF
ESTIMATED TOTAL PROJECT COSTS
ACQUISITION COSTS
(vacant, per square foot)
Estimated Total Project
Costs
Administration Costs
Percentage Property Zoning Estimated Cost
(vacant, per sq. ft.)
Over $10 Million 7% Industrial Property $20.00
$5 Million to $10 Million 10% Commercial/Retail/Office $40.00 $1 Million to $5 Million 15% Commercial – Old Town $110.00 $500,000 to $1 Million 20% Rural/Residential $2.00 - $5.00 $100,000 to $500,000 25% Flood Plain $1.50
Less than $100,000 30% Multi-Family Residential $9.00
Single Family Residential $6.00
DESIGN COSTS AS A PERCENTAGE OF
TOTAL CONSTRUCTION COSTS CONSTRUCTION COSTS
Estimated Total
Construction Costs
Design Costs
Percentage Building Type Estimated Cost
Over $10 Million 7% Assembly Use Building (per sq. ft.) $450 $5 Million to $10 Million 10% Office (per sq. ft.) $400 $1 Million to $5 Million 15% Multi-Family Housing (per sq. ft.) $300 $500,000 to $1 Million 18% Community Parks (per acre) $500,000 $100,000 to $500,000 20% Neighborhood Parks (per acre) $400,000 Less than $100,000 25%
Parameters for the CIP cost estimates are adjusted annually to reflect current economic conditions and cost of living increases. Future projected cost appropriations may reflect estimated increases of 2% annually for inflation. Future operating and maintenance costs are estimated based on the life of the project to maintain the project life with a 2% yearly inflator, where applicable, and are included in the City of Temecula annual operating budget. 20 45
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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.
21 46
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
DESCRIPTION OF REVENUE SOURCES
Facilities Replacement Fund
This Fund was established to accumulate resources necessary to replacement future Facilities systems, equipment and fixtures.
Gas 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.
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, police, fire protection, school safety patrols, youth/after-school, senior, disabled services, improve freeway interchanges, reduce traffic and provide for other general services.
22 47
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
DESCRIPTION OF REVENUE SOURCES
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.
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.
23 48
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
DESCRIPTION OF REVENUE SOURCES
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.
Street Maintenance Fund
This fund was established to accumulate resources for the future replacement of streets and roads throughout the City.
Surface Transportation Program (STP)
Federal funds available for local agencies to improve the safety and efficiency of the local transportation system.
24 49
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
DESCRIPTION OF REVENUE SOURCES
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.
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.
Technology Replacement Fund
This fund is used for the replacements of computers, system Software and all other Information Technology equipment.
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.
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.
Uptown Temecula new Streets In-Lieu Fees
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.
WRCOG-BEYOND Framework Fund Program
Local assistance funding program for Economic Development and Sustainability Projects. 25 50
Cat
ego
ry 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
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 9,050,239 246,926,887 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 Capital Projects Revenue Summary
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
29 51
Cat
ego
ry 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
Capital Projects Revenue Summary
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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 30 52
Cat
ego
ry 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
Capital Projects Revenue Summary
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 31 53
(673,562)
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
CIP MAJOR REVENUE SOURCES
PROJECTED REVENUES: $6,,
32 54
2025-26
Amended
2026-27
Proposed
2027-28
Projected
2030-31
Projected
Total Project
Cost
11,861,900 11,861,900
3,930,179 4,469,000
11,809,031 2,000,000 3,614,478 19,050,991
19,447,434 200,000 139,951,346
5,673,286 450,000 77,146,194
181,400,000 181,400,000
1,692,520 9,258,710
1,728,789 51,091,897
3,003,153 800,000 3,809,000
100,000 766,838
1,400,000 350,000 1,750,000
5,827,233 150,000 29,826,283 38,627,748
335,368 8,317,897
6,189,746 2,482,597 172,436 9,512,837
8,035,568 4,195,697 4,342,371 4,386,579 80,344,826
822,716 8,458,000
1,446,424 260,000 260,000 3,786,788
693,166 375,000 3,282,683
4,081,216 1,731,800 6,250,587
87,977,727 12,645,094 34,601,090 189,851,057 659,137,242 1,261,000 1,261,000
1,219,302 10,130,000
1,000,000 570,000 1,300,000 2,870,000
6,710,000 6,710,000
10,190,302 570,000 1,300,000 20,971,000
Circulation Projects
Butterfield Stage Road Storm Drain Improvements
French Valley Parkway/I-15 Improvements - Phase III 5,083,508 3,750,000 62,189,400 I-15/State Route 79 South Ultimate Interchange 49,363,108 La Paz Road Roundabout Reconstruction 5,847
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Project Expenditure Summary
Project Name
Prior Years
Actuals
2028-29
Projected
2029-30
Projected
French Valley Parkway/I-15 Improvements - Phase II 120,303,913 De Portola Road/Jedediah Smith Road Roundabout 538,821
Diaz Road Expansion 1,627,483
I-15 / French Valley Parkway Improvements-Phase IV
I-15 Congestion Relief 7,566,190
Overland Drive Extension Commerce Center 7,982,529
Overland Drive Widening 668,058
Medians & Parkways - Citywide 666,838
Murrieta Creek Bridge At Overland 1,905,687 918,545
Mercedes Street Sidewalk
Traffic Signal - Equipment Enhancement Program - Citywide 1,560,364 260,000 Traffic Signal - Installation - Citywide 1,914,517 300,000 Pavement Rehabilitation Program - Citywide 50,700,213 4,492,198 4,192,200 Rancho California Road Median Improvements 135,284 7,500,000 Ynez Road Improvements - Phase I 437,571
Housing Projects
Habitat for Humanity Old Town Units
Circulation Total 250,459,931 9,720,743 73,881,600
Vine Creek Affordable Housing Project
Housing Total 8,910,698
Las Haciendas Affordable Housing Project 8,910,698
Uptown Temecula Affordable Housing Site
33 55
2025-26
Amended
2026-27
Proposed
2027-28
Projected
2030-31
Projected
Total Project
Cost
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Project Expenditure Summary
Project Name
Prior Years
Actuals
2028-29
Projected
2029-30
Projected
805,957 735,840 403,660 403,660 3,987,146
669,265 735,218
187,835 170,000 175,000 1,144,558 2,466,305
354,906 232,000 1,084,808
192,326 9,387,069
274,450 274,500
849,554 488,160 1,814,480
2,439,183 1,500,000 1,000,000 1,000,000 12,523,666
155,052 275,000
3,739,813
950,000 950,000
198,372 60,000 911,553
486,224 50,000 1,426,718
3,000,000 3,000,000
484,470 6,135,874
161,996 378,000
2,809,677 3,550,000
164,361 492,729
75,835 208,000
4,431,118 1,554,602 6,720,282
3,011,604 3,529,450
1,896,302 3,630,295
100,000 200,000 600,000
449,062 700,000
168,063 240,000
155,000 155,000
30,000 30,000
119,109 12,321,508
2,218,995
854,552 976,900
303,898 2,837,601
2,000,000 2,000,000
797,752 1,405,000
327,691 450,000
589,980
Auto Mall Wayfinding Signs 65,953
Bike Lane And Trail Program - Citywide 418,913 185,000 185,000 Infrastructure Projects
American With Disabilities Act (ADA) Transition Plan Implementation 830,709 403,660 403,660 Bike Lane Upgrades - Citywide 50
Bridge Maintenance 176,766 300,000
Bike Lane and Trail Program - Great Oak Trail Lighting 497,902 Bike Lane And Trail Program - Temecula Creek South Side Trail 601,394 8,593,350 City Security Camera System 3,739,813
Citywide Community Fire Protection Plan
City Facilities Rehabilitation 4,584,484 1,000,000 1,000,000 City Facility Security 119,948
Civic Center HVAC System Upgrade
Community Recreation Center (CRC) Renovations 5,651,404 Citywide Drainage Master Plan 653,181
Citywide Financial System Upgrade 890,494
Electric Vehicles Charging Station 328,369
Fiber Optic Communications Systems - Citywide 132,165
Community Wildfire Protection Plan 216,004
Comprehensive General Plan Update 740,323
I-15/State Route 79 South Interchange Enhanced Landscaping 1,733,993 Interstate 15 Corridor Branding and Visioning Improvements 100,000 200,000 Fire Station 73 Gym/Garage 734,562
Fire Station 84 Training Room Renovation 517,846
Local Roadway Safety Plan Update
Library Alternate Emergency Operations Center Enhancements 250,938 Library Technology Enhancements 71,937
Mary Phillips Senior Center Enhancement And Renovation 2,218,995 Medians & Traffic Calming Improvements - Citywide 122,349 Long Canyon Creek Park to Ynez Trail
Margarita Recreation Center 12,202,399
Old Town Parking Structure 607,248
Old Town Temecula Parklets Program 122,309
Murrieta Creek Improvements 2,533,703
Nicolas Road Multi-Use Trail Extension
Pavement Management Program Update 181,428 214,980193,572 34 56
2025-26
Amended
2026-27
Proposed
2027-28
Projected
2030-31
Projected
Total Project
Cost
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Project Expenditure Summary
Project Name
Prior Years
Actuals
2028-29
Projected
2029-30
Projected
205,078 275,000
286,373 5,600,123
95,311 1,772,575
(73,989)1,828,585
1,063,572 1,257,124
149,478 1,092,326
100,000 100,000
965,448 1,870,050 4,793,200
464,854 572,700
2,975,125 3,255,900
239,485 1,410,000 1,675,000
169,523
32,437,918 5,782,442 3,936,870 5,808,218 114,137,946
169,724 545,090
32,675 2,577,147
400,000 400,000
1,177,366
315,000 315,000
452,355 4,191,230 4,662,179
4,269 232,130
46,014 400,000
1,211,636 1,497,930
200,000 200,000
133,932 729,800
269,149 4,078,374
3,503,725
832,151 1,439,725 7,657,649
3,184,234 4,120,406
5,806,260 6,110,000
18,594
227,861
Santa Gertrudis Creek Phase II - Margarita Under-Crossing 5,313,750 Sidewalks - Citywide 1,677,265
Pedestrian Ramp Upgrades - Citywide 69,922
Sixth Street Improvements 942,848
Sidewalks - Old Town Improvements 1,902,573
Sidewalks - Pauba Road 193,552
Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 107,846 Traffic Signal - Safety Lights and Signal Communications Upgrade- Citywide 280,775 South Side Senior Center
Storm Drain Pipe Lining 87,652 1,870,050
Traffic Signal Fiber Optic Extension 25,515
Utility Undergrounding - Citywide 169,523
Infrastructure Total 51,716,798 10,282,010 4,173,690
Community Recreation Center Splash Pad & Shade Structures 2,544,472 CRC Pool Cantilever Restoration
Parks/Recreation Projects
Children's Museum Enhancement Project 375,366
Park Restrooms Renovations, Expansion And Americans With Disabilities Act 595,868 Parks Improvement Program 3,809,224
Dog Park Renovation 1,177,366
Eagle Soar Splash Pad Rehabilitation
Infill Recreational Amenities
Long Canyon Creek Park Restrooms
Mike Naggar Park Pickleball Court Conversion
353,986
286,294
Empire Creek Improvements
Harveston Community Park Building Renovation and Expansion Ronald Reagan Sports Park Hockey Rink 936,172
Ronald Reagan Sports Park Skate Park 303,740
Pickleball Courts 3,503,725
Playground Equipment Enhancement & Safety Surfacing 5,385,773 35 57
(73,989)
2025-26
Amended
2026-27
Proposed
2027-28
Projected
2030-31
Projected
Total Project
Cost
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Project Expenditure Summary
Project Name
Prior Years
Actuals
2028-29
Projected
2029-30
Projected
100,000 100,000
360,000 360,000
206,427 100,000 770,257
264,083 2,730,000
2,237,021 14,924,822
1,070,619 1,392,930
16,795,547 1,539,725 100,000 400,000 58,484,803
1,481,653 41,407,029
22,172,876 22,184,660
23,654,528 63,591,689
Total Capital Improvement Program 171,056,022 20,537,261 39,937,960 82,246,520 196,059,275 916,322,680 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
Sports Court Resurfacing 363,830 100,000
Sports Field Lighting - Light Emitting Diode (LED) Conversion 2,465,917 Ronald Reagan Sports Park Trail
Santiago Site - Community Garden
Vail Ranch Park Restrooms 322,311
Uptown Temecula Sports Park 139,979 12,547,822
Parks/Recreation Total 22,810,479 12,647,822 4,191,230
Nicolas Road Extension & Improvements 11,784
Projects Funded by Community Facilities District Bonds
Butterfield Stage Road Extension 39,925,377
Projects Funded by Community Facilities District Bonds Total 39,937,161 373,835,067 32,650,575
36 58
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
EXPENDITURE SUMMARY
BY PROJECT TYPE
PROJECTED EXPENDITURES: $
,,
37 59
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 0000000
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 00000
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
38 60
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Development Impact Fees (DIF)
DIF - Corporate Facilities
City Facilities Rehabilitation 280,000 0 0 0 0 0 0 280,000 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 39 61
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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 40 62
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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 41 63
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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
42 64
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 0000000
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 0000000
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 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 43 65
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 0000000
44 66
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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 45 67
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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 46 68
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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 47 69
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 0000000
48 70
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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 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 0000000
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 49 71
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
1,438,000 0 0 0 0 0 0 1,438,000
1,065,923 5,665,077 0 0 0 0 0 6,731,000
19,489,986 1,059,127 0 0 0 0 0 20,549,113
1,324,898 1,675,102 0 0 0 0 0 3,000,000
2,071,971 1,428,029 0 0 0 0 0 3,500,000
Transporƚation Uniform Mitigation Fee (TUMF)
Butterfield Stage Road Extension
Diaz Road Expansion
French Valley Parkway/I-15 Improvements - Phase II
French Valley Parkway/I-15 Improvements - Phase III
I-15 Congestion Relief
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
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 50 72
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
Capital Projects Summary - By Funding Source
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
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) 51 73
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
Cost
Butterfield Stage Road Storm Drain
Improvements 4,008,270 4,008,270
4,853,630 4,853,630
3,000,000 3,000,000
11,861,900 11,861,900
De Portola Road/Jedediah Smith Road
Roundabout 1,970,013 2,509,000
800,000 800,000
1,160,000 1,160,000
3,930,013 4,469,000
Diaz Road Expansion 590
2,000,000 2,000,000
5,530,606 5,882,547
613,642 822,376
5,665,077 6,731,000
3,614,478 3,614,478
11,809,325 2,000,000 3,614,478 19,050,991
French Valley Parkway/I-15 Improvements -
Phase II 1,005,840
1,000,000 1,000,000
75,360
4,236,174
6,983,751 50,000,000
1,627,914
429,578 200,000 6,231,335
6,023,250
162,521 1,602,360
9,121,276 47,600,000
999,668 798,947
(673,562)3,016,562
733,021 16,733,604
18,756,253 200,000 139,951,346
French Valley Parkway/I-15 Improvements -
Phase III 1,669,794
30,000
548,120 891,817
165,183
Funding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Reimbursements
Total
CIRCULATION PROJECTS
County AD 159
Developer Contribution
Measure A
Total 538,987
DIF-Street Improvements 538,987
Grants
Measure A 351,941
Measure S 208,734
DIF-Street Improvements 590
Grants
Total 1,627,188
CFD 01-02 (Harveston) 1,005,840
TUMF (WRCOG) 1,065,923
Unspecified
General Fund 4,236,174
INFRA Grant 43,016,249
Developer Contribution
DIF-Street Improvements 75,360
Reimbursements 6,023,250
SAFETEA-LU 1,439,840
Measure A 1,627,914
Measure S 5,601,757
TUMF (RCTC) 3,690,124
TUMF (WRCOG) 16,000,583
STIP-Surface Transportation Improvement
Program 38,478,724
TUMF (CETAP/RCTC) (200,721)
General Fund 30,000
Measure S 343,697
Total 120,995,093
Affordable Housing 1,669,794
Reimbursements 165,183
52 74
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
5,000,000 5,000,000
1,675,102 3,000,000
3,750,000 450,000 66,389,400
7,223,222 3,750,000 450,000 77,146,194
I-15 / French Valley Parkway Improvements-
Phase IV 181,400,000 181,400,000
I-15 Congestion Relief 270,275 1,908,710
2,500,000
100,000
1,250,000
1,428,029 3,500,000
1,698,304 9,258,710
I-15/State Route 79 South Ultimate Interchange 502,211
694,068 1,433,260
1,190,582
1,439,839
160,000 14,606,520
696,272 12,976,000
47,785 5,400,000
4,452,000
3,524,196 9,091,485
5,122,321 51,091,897
La Paz Road Roundabout Reconstruction 3,009,000 800,000 3,809,000 Medians & Parkways - Citywide 100,000 766,838
Mercedes Street Sidewalk 1,400,000 350,000 1,750,000
Murrieta Creek Bridge At Overland 1,096,387 150,000 8,761,283 918,545 12,107,748 3,236,692 21,065,000 25,520,000
879,334 1,000,000
5,212,413 150,000 29,826,283 918,545 38,627,748
Overland Drive Extension Commerce Center 8,082,475
235,422
8,317,897
Overland Drive Widening 1,321,714 2,482,597 172,436 4,648,053 4,864,784 4,864,784
6,186,498 2,482,597 172,436 9,512,837
TUMF (WRCOG) 1,324,898
Unspecified 62,189,400
STIP-Surface Transportation Improvement
Program
General Fund 1,638,435
Reimbursement-Pechanga IGA 2,500,000
Total 3,533,572 62,189,400
Unspecified
TUMF (CETAP/RCTC) 2,071,971
Total 7,560,406
Reimbursements 100,000
SHOPP 1,250,000
Reimbursements/Other 1,190,582
SAFETEA-LU 1,439,839
CFD 03-01 (Crowne Hill) 502,211
Reimbursements 739,192
TUMF (CETAP/RCTC) 5,352,215
TUMF (RCTC) 4,452,000
Senate Bill 621 14,446,520
STP (RCTC) 12,279,728
Measure S
DIF-Street Improvements 666,838
TUMF (WRCOG) 5,567,289
Total 45,969,577
HBP-Highway Bridge Program 1,218,308
Measure S 120,666
Measure S
DIF-Street Improvements 1,181,533
General Fund 235,422
Total 8,317,897
Total 2,520,507
DIF-Street Improvements 8,082,475
Total 671,306
DIF-Street Improvements 671,306
Street Maintenance Fund
53 75
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Pavement Rehabilitation Program - Citywide 1,200,000
5,692,614
1,224,000 1,312,000 598,460 551,866 574,162 30,174,118
2,000,000
308,054
6,800,734 2,883,697 3,743,911 3,940,332 3,812,417 37,370,040 3,600,000
8,024,734 4,195,697 4,342,371 4,492,198 4,386,579 80,344,826 Rancho California Road Median Improvements 57,200 57,200 635,546 750,800
125,667 150,000
7,500,000
818,413 8,458,000
Traffic Signal - Equipment Enhancement
Program - Citywide 541,788
1,446,424 260,000 260,000 260,000 3,245,000
1,446,424 260,000 260,000 260,000 3,786,788
Traffic Signal - Installation - Citywide 3,236 250,000
262,873 375,000 300,000 2,237,683
427,056 795,000
693,165 375,000 300,000 3,282,683
Ynez Road Improvements - Phase I 435,750
1,603,158 1,507,444 3,115,481
2,437,120 2,475,000
224,356 224,356
4,040,278 1,731,800 6,250,587
TOTAL CIRCULATION PROJECTS 91,232,262 12,645,094 34,601,090 9,720,743 189,851,057 659,137,242 Habitat for Humanity Old Town Units 700,000 700,000
561,000 561,000
1,261,000 1,261,000
Las Haciendas Affordable Housing Project 718,445 9,629,143 500,857 500,857
1,219,302 10,130,000
Gas Tax 1,200,000
Measure S 2,000,000
Reimbursements 308,054
General Fund 5,692,614
Measure A 25,650,726 262,904
Total 50,711,047 4,192,200
Developer Contribution
RMRA 12,259,653 3,929,296
Street Maintenance Fund 3,600,000
Unspecified 7,500,000
Total 139,587 7,500,000
DIF-Street Improvements 115,254
Measure S 24,333
Total 1,560,364
Developer Contribution 246,764
DIF-Traffic Signals 541,788
Measure S 1,018,576
Total 1,914,518
Developer Contribution 435,750
DIF-Traffic Signals 1,299,810
Measure S 367,944
Street Maintenance Fund
Total 478,509
DIF-Street Improvements 4,879
Grants 37,880
Contribution of Land
Total
247,205,396 73,881,600
HOUSING PROJECTS
Affordable Housing
Total 8,910,698
Affordable Housing 8,910,698
Uptown Temecula New Streets In Lieu Fee
54 76
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Uptown Temecula Affordable Housing Site 1,000,000 1,000,000 570,000 1,300,000 1,870,000
1,000,000 570,000 1,300,000 2,870,000
Vine Creek Affordable Housing Project 2,710,000 2,710,000 4,000,000 4,000,000
6,710,000 6,710,000
TOTAL HOUSING PROJECTS 10,190,302 570,000 1,300,000 20,971,000 American With Disabilities Act (ADA) Transition
Plan Implementation 561,636 657,180 325,000 325,000 325,000 3,107,866 393,694 78,660 78,660 78,660 78,660 879,280
955,330 735,840 403,660 403,660 403,660 3,987,146
Auto Mall Wayfinding Signs 667,693 735,218
Bike Lane And Trail Program - Citywide 187,835 170,000 175,000 185,000 185,000 1,414,713 19,857
72,177
959,558 959,558
187,835 170,000 175,000 185,000 1,144,558 2,466,305
Bike Lane and Trail Program - Great Oak Trail
Lighting 232,000 232,000
352,808 352,808
692 500,000
353,500 232,000 1,084,808
Bike Lane And Trail Program - Temecula Creek
South Side Trail 67,845
192,161 725,874
8,593,350 8,593,350
192,161 8,593,350 9,387,069
Bike Lane Upgrades - Citywide 224,550 224,550
49,900 49,950
274,450 274,500
Bridge Maintenance 841,216 488,160 1,814,480
City Facilities Rehabilitation 280,000
2,439,184 1,500,000 1,000,000 1,000,000 1,000,000 10,493,666 1,750,000
2,439,184 1,500,000 1,000,000 1,000,000 1,000,000 12,523,666 Community Reinvestment Program
Affordable Housing
Community Reinvestment Program
Contribution of Land
Total
INFRASTRUCTURE PROJECTS
CDBG 589,050 325,000
Measure S 92,286 78,660
Total
8,910,698
Assembly Bill 2766 326,878 185,000
Beyond Grant 19,857
Total 681,336 403,660
Measure S 67,525
Total 418,912 185,000
DIF-Open Space & Trails
DIF-Open Space & Trails 72,177
Unspecified
Total 499,308
Assembly Bill 2766 67,845
Measure S
Service Level C - Zone 28 499,308
Total 601,558
HSIP-Highway Safety Improvement Program
Measure S 533,713
Unspecified
Measure A 185,104 300,000
DIF-Corporate Facilities 280,000
Measure S 50
Total 50
Total 4,584,482 1,000,000
Facilities Replacement Fund 2,554,482 1,000,000
General Fund 1,750,000
55 77
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
City Facility Security 25,000 25,000
107,246 250,000
132,246 275,000
City Security Camera System 752,087
1,121,113
(297,477)1,866,613
(297,477)3,739,813
Citywide Community Fire Protection Plan 179,000 179,000 771,000 771,000
950,000 950,000
Citywide Drainage Master Plan 198,165 851,553
60,000 60,000
198,165 60,000 911,553
Citywide Financial System Upgrade 613,184
543,782 50,000 813,534
543,782 50,000 1,426,718
Civic Center HVAC System Upgrade 3,000,000 3,000,000
Community Recreation Center (CRC)
Renovations 1,521,208
(15,000)3,035,592
499,181 1,579,074
484,181 6,135,874
Community Wildfire Protection Plan 111,402 378,000
Comprehensive General Plan Update 1,682,859 2,740,000
78,512 810,000
1,761,371 3,550,000
Electric Vehicles Charging Station 47,000
29,426 141,000
5,800 5,800
110,652 298,929
145,878 492,729
Fiber Optic Communications Systems - Citywide (12,015)
87,850 208,000
75,835 208,000
DIF-Corporate Facilities
DIF-Corporate Facilities 752,087
DIF-Police Facilities 1,121,113
Measure S 142,754
Total 142,754
Community Reinvestment Program
Measure S
Measure S 2,164,091
Total 4,037,291
Unspecified
Total 653,388
Total
Measure S 653,388
Total 832,936
Facilities Replacement Fund
Measure S 613,184
Technology Replacement Fund 219,752
Measure S 1,079,893
Total 5,651,693
DIF-Park & Rec Improvements 1,521,208
DIF-Quimby 3,050,592
Grants 731,488
Total 1,788,629
Grants 266,598
General Fund 1,057,141
Reimbursements
TEAM 188,277
Assembly Bill 2766 47,000
Grant 111,574
Measure S 120,150
Total 132,165
Total 346,851
DIF-Police Facilities 12,015
56 78
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Fire Station 73 Gym/Garage 50,000 93,651
194,890 322,226
4,398,035 1,359,712 6,304,405
4,448,035 1,554,602 6,720,282
Fire Station 84 Training Room Renovation 662,131 662,131 448,248 448,248
800,000 800,000
909,210 1,619,071
2,819,589 3,529,450
I-15/State Route 79 South Interchange
Enhanced Landscaping 620,306 1,130,295
2,500,000
620,306 3,630,295
Interstate 15 Corridor Branding and Visioning
Improvements 100,000 100,000
100,000 200,000 500,000
100,000 100,000 200,000 600,000
Library Alternate Emergency Operations Center
Enhancements 449,062 700,000
Library Technology Enhancements 168,063 240,000
Local Roadway Safety Plan Update 120,000 120,000
35,000 35,000
155,000 155,000
Long Canyon Creek Park to Ynez Trail 30,000 30,000
Margarita Recreation Center 6,405,000
600,000
25,744 137,000
95,916 5,179,508
121,660 12,321,508
Mary Phillips Senior Center Enhancement And
Renovation 1,057,584
279,694
(70,694)881,717
(70,694)2,218,995
Medians & Traffic Calming Improvements -
Citywide 40,000
680,000 911,900
25,000 25,000
705,000 976,900
Measure S 546,658
Total 717,645
DIF-Corporate Facilities 43,651
DIF-Fire Protection Facilities 127,336
Facilities Replacement Fund
Measure S 709,861
DIF-Corporate Facilities
DIF-Fire Protection Facilities
Reimbursement-Pechanga IGA 2,500,000
Total 3,009,989
Total 709,861
Measure S 509,989
Total 200,000
DIF-Library Facilities 250,938
Public Art Fund
Unspecified 200,000
Measure S
Total
DIF-Library Facilities 71,937
Grants
DIF-Park & Rec Improvements 600,000
DIF-Police Facilities 111,256
DIF-Open Space & Trails
Capital Financing 6,405,000
CDBG 1,057,584
Facilities Replacement Fund 279,694
Measure S 5,083,592
Total 12,199,848
DIF-Street Improvements 40,000
Measure S 231,900
Measure S 952,411
Total 2,289,689
Reimbursements
Total 271,900
57 79
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Murrieta Creek Improvements 15,000 145,000
135,858
125,319 1,387,458
969,285
100,000 200,000
240,319 2,837,601
Nicolas Road Multi-Use Trail Extension 450,000 450,000
300,000
1,100,000 1,100,000
150,000 150,000
1,700,000 2,000,000
Old Town Parking Structure 1,000,000
405,000 405,000
405,000 1,405,000
Old Town Temecula Parklets Program 327,691 450,000
Pavement Management Program Update 85,020 185,020
106,691 404,960
191,711 589,980
Pedestrian Ramp Upgrades - Citywide 225,000 225,000
26,671 50,000
251,671 275,000
Santa Gertrudis Creek Phase II - Margarita
Under-Crossing 315,159 1,562,908
(319,984)2,215,231
319,984 319,984
103,576 1,502,000
418,736 5,600,123
Sidewalks - Citywide 375,000
115,104 1,397,575
115,104 1,772,575
Sidewalks - Old Town Improvements 849,426
140,000
(299,719)839,159
(299,719)1,828,585
DIF-Corporate Facilities 130,000
General Fund 135,858
TEAM 100,000
Total 2,597,282
Measure S 1,262,139
Reimbursements 969,285
Measure A
Measure S
Assembly Bill 2766
DIF-Open Space & Trails 300,000
Measure S
Total 1,000,000
Total 300,000
General Fund 1,000,000
RMRA 183,289 114,980
Total 183,289 214,980
Community Reinvestment Program 122,309
Measure S 100,000
Total 23,329
DIF-Open Space & Trails 1,247,749
HSIP-Highway Safety Improvement Program
Measure S 23,329
Senate Bill 1 1,398,424
Total 5,181,387
Measure S 2,535,215
Reimbursements
Total 1,657,471
CDBG 849,426
General Fund 375,000
Measure S 1,282,471
Total 2,128,303
Measure A 140,000
Measure S 1,138,877
58 80
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Sidewalks - Pauba Road 696,316 894,524
362,600 362,600
1,058,916 1,257,124
Sixth Street Improvements 115,000
149,291 977,326
149,291 1,092,326
South Side Senior Center 100,000 100,000
Storm Drain Pipe Lining 964,931 1,870,050 4,793,200
Traffic Signal - Pedestrian Signal Equipment
Upgrade Phase 2 - Citywide 492,930 492,930
74,586 79,770
567,516 572,700
Traffic Signal - Safety Lights and Signal
Communications Upgrade- Citywide 473,697 594,590
2,254,800 2,441,310
220,000 220,000
2,948,497 3,255,900
Traffic Signal Fiber Optic Extension 649,000 649,000
552,850 552,850
239,485 208,150 473,150
792,335 857,150 1,675,000
Utility Undergrounding - Citywide (74,852)169,523
TOTAL INFRASTRUCTURE PROJECTS 29,289,918 5,229,592 3,936,870 10,282,010 5,808,218 114,137,946 Children's Museum Enhancement Project 145,090
400,000
545,090
Community Recreation Center Splash Pad &
Shade Structures 31,889 2,577,147
CRC Pool Cantilever Restoration 400,000 400,000
Dog Park Renovation 100,000
447,126
(634)630,240
(634)1,177,366
Eagle Soar Splash Pad Rehabilitation 300,000 300,000
15,000 15,000
315,000 315,000
Measure S 198,208
Community Reinvestment Program 115,000
Measure S 828,034
Senate Bill 821
Total 198,208
Measure S 88,169 1,870,050
HSIP-Highway Safety Improvement Program
Total 943,034
DIF-Park & Rec Improvements
DIF-Traffic Signals 120,893
HSIP-Highway Safety Improvement Program 186,510
Measure S 5,184
Total 5,184
DIF-Police Facilities
HSIP-Highway Safety Improvement Program
Measure S
Total 307,403
Measure S 244,375
55,417,646 4,173,690
Measure S 25,515
Total 25,515
Total 545,090
Measure S 2,545,258
PARKS/RECREATION PROJECTS
DIF-Park & Rec Improvements 145,090
Measure S 400,000
Grants 447,126
Measure S 630,874
Facilities Replacement Fund
DIF-Corporate Facilities 100,000
Measure S
Total
Total 1,178,000
Community Reinvestment Program
59 81
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Empire Creek Improvements 452,355 470,949
4,191,230
452,355 4,662,179
Harveston Community Park Building
Renovation and Expansion (1,355,000)60,000
(14,780)172,130
(1,369,780)232,130
Infill Recreational Amenities 46,014 400,000
Long Canyon Creek Park Restrooms 1,208,905 1,497,930
Mike Naggar Park Pickleball Court Conversion 200,000 200,000 Park Restrooms Renovations, Expansion And
Americans With Disabilities Act (ADA)
Improvements 121,519 729,800
Parks Improvement Program 250,000
1,003,059
2,440,000
282,000 385,315
282,000 4,078,374
Pickleball Courts 1,450,000
261,000
(1,841)1,792,725
(1,841)3,503,725
Playground Equipment Enhancement & Safety
Surfacing 1,040,000
500,000 500,000 1,440,000
332,151 939,725 5,177,649
832,151 1,439,725 7,657,649
Ronald Reagan Sports Park Hockey Rink 500,000
334,159 1,014,974
520,432 520,432
1,825,896 2,085,000
2,680,487 4,120,406
Ronald Reagan Sports Park Skate Park 314,624 314,624
1,016,240 1,016,240
4,471,237 4,779,136
5,802,101 6,110,000
Ronald Reagan Sports Park Trail 100,000 100,000
Total 18,594 4,191,230
Developer Contribution 1,415,000
Measure S 18,594
Unspecified 4,191,230
DIF-Quimby 353,986
Measure S 289,025
DIF-Quimby 186,910
Total 1,601,910
DIF-Quimby 250,000
General Fund 1,003,059
Measure S
Measure S 608,281
Total 3,796,374
DIF-Park & Rec Improvements 1,450,000
Measure S 2,440,000
Reimbursements 103,315
Total 3,505,566
DIF-Park & Rec Improvements 1,040,000
DIF-Quimby 261,000
Measure S 1,794,566
Total 5,385,773
Developer Contribution 500,000
DIF-Quimby 440,000
Measure S 3,905,773
Measure S 259,104
Total 1,439,919
DIF-Park & Rec Improvements 680,815
DIF-Quimby
Measure S 307,899
Total 307,899
DIF-Park & Rec Improvements
DIF-Quimby
Measure S
60 82
Capital Project Name
2025-26
Amended
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2030-31
Projected
Total
Project
CostFunding Source
Prior Years
Actuals
2029-30
Projected
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Capital Projects Summary - By Project
Santiago Site - Community Garden 360,000 360,000
Sports Court Resurfacing 206,427 100,000 100,000 770,257 Sports Field Lighting - Light Emitting Diode
(LED) Conversion 264,083 2,430,000
300,000
264,083 2,730,000
Uptown Temecula Sports Park 2,000,000 2,000,000
870,327 1,000,000 2,000,000
1,366,404 1,377,000
9,547,822 9,547,822
2,236,731 12,547,822 14,924,822
Vail Ranch Park Restrooms 1,067,867 1,392,930
TOTAL PARKS/RECREATION PROJECTS 14,735,274 1,539,725 100,000 12,647,822 400,000 58,484,803 Butterfield Stage Road Extension 635,200 39,036,939
932,090
1,438,000
635,200 41,407,029
Nicolas Road Extension & Improvements 7,695,933 7,707,717 6,722,850 6,722,850
7,754,093 7,754,093
22,172,876 22,184,660
TOTAL PROJECTS FUNDED BY COMMUNITY
FACILITIES DISTRICT BONDS PROJECTS 22,808,076 63,591,689 TOTAL CAPITAL IMPROVEMENT PROGRAM 168,255,833 19,984,411 39,937,960 32,650,575 196,059,275 916,322,680 Measure S 363,830
Measure S 2,165,917
Community Reinvestment Program
DIF-Park & Rec Improvements
DIF-Quimby 129,673
TEAM 300,000
Total 2,465,917
Total 140,269
Measure S 325,063
Measure S 10,596
Unspecified
Reimbursements 932,090
TUMF 1,438,000
24,870,754 4,191,230
PROJECTS FUNDED BY COMMUNITY FACILITIES DISTRICT BONDS PROJECTS CFD 03-02 (Roripaugh Ranch) 38,401,739
CFD 16-01 (Roripaugh Ranch-Phase II)
Developer Contribution
Total 40,771,829
CFD 03-02 (Roripaugh Ranch) 11,784
377,188,107 82,246,520
Total 11,784
40,783,613
61 83
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 Proposed O&M Impacts are included in the Proposed Operating Budget The Projected Operating impacts have been reflected in the City's General Fund and TCSD 5-Year Financial Forecasts.
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
Total Incremental Operating & Maintenance Impacts
Summary of Operating & Maintenance Impacts
62 84
6ϯ 85
64 86
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 433,150 433,150
5804-Construction 8,663,000 8,663,000
5805-Construction Engineering 2,165,750 2,165,750
5700-Land Acquisition 600,000 600,000
Total Expenditures - 11,861,900 -----11,861,900
Source of Funds:
4479-County AD 159 4,008,270 4,008,270
4666-Developer Contribution 4,853,630 4,853,630
4438-Reimbursements 3,000,000 3,000,000
Total Funding - 11,861,900 -----11,861,900
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Reimbursements reflect the contribution from the County of Riverside
2. An agreement is being executed between the City and Riverside County for this project.
3. Developer Contribution will be reimbursed to the Developer through CFD 25-01 Project Description: This project will install storm drain improvements on the east side of Butterfield Stage Road from south of De Portola Road to south of Wolf Store Road. The project includes the installation of storm drain pipes, widening the east side of Butterfield Stage Road north of Temecula Parkway, and relocation of sewer facilities. The project is funded by County Assessment District 159 and the County of Riverside.
Benefit: This project provides storm drain improvements to protect adjacent areas from potential flooding and improves traffic circulation at the intersection of Butterfield Stage Road and Temecula Parkway.
Core Value: A Safe and Prepared Community
Project Status: The County of Riverside is in the final stages of design.
Department: Public Works - Account No. 210.265.999.5800.PW23-15 / 792 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BUTTERFIELD STAGE ROAD STORM DRAIN IMPROVEMENTS
Circulation Project
65 87
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 38,805 351,195 390,000
5804-Construction 2,900,000 2,900,000
5805-Construction Engineering 78,000 78,000
5802-Design & Environmental 500,016 150,484 650,500
5700-Land Acquisition 400,000 400,000
5806-MSHCP 50,500 50,500
Total Expenditures 538,821 3,930,179 -----4,469,000
Source of Funds:
4242-DIF-Street Improvements 538,987 1,970,013 2,509,000 4025-Grants 800,000 800,000
4170-Measure A 1,160,000 1,160,000
Total Funding 538,987 3,930,013 -----4,469,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Grant funding reflects the Economic Development Initiative / Community Project Funding (EDI/CPF) for Federal Fiscal Year 2023 - Federal Omnibus Bill 2023 signed into law on 12/29/2023.
Project Description: This project includes the design and construction of a traffic circle, roundabout, on Ynez / De Portola Road at the intersection of Jedediah Smith Road. The improvements include the construction of a raised traffic circle with desert style hardscape inside the circle.
Benefit: This project maintains the natural beauty of the community and improves traffic safety at this intersection.
Core Value: Healthy and Livable City
Project Status: Project anticipated to start construction in 2026.
Department: Public Works - Account No. 210.265.999.5800.PW23-01 / 797 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
DE PORTOLA ROAD / JEDEDIAH SMITH ROAD ROUNDABOUT PROJECT Circulation Project
66 88
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 317,305 64,730 139,478 521,513
5804-Construction 10,000,000 2,000,000 2,800,000 14,800,000 5805-Construction Engineering 900,000 255,000 1,155,000 5802-Design & Environmental 1,310,178 344,300 280,000 1,934,478 5806-MSHCP 500,000 140,000 640,000
Total Expenditures 1,627,483 11,809,031 2,000,000 ---3,614,478 19,050,991 Source of Funds:
4242-DIF-Street Improvements 590 590
4083-Grants 2,000,000 2,000,000
4170-Measure A 351,941 5,530,606 5,882,547
4002-Measure S 208,734 613,642 822,376
4472-TUMF (WRCOG) 1,065,923 5,665,077 6,731,000
4452-Unspecified 3,614,478 3,614,478
Total Funding 1,627,188 11,809,325 2,000,000 ---3,614,478 19,050,991 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: Converts Diaz Road into a Major Arterial (4 Lanes Divided) classification, between Cherry Street and Rancho California Road.
Improvements will be added to Diaz Road on its current alignment as shown in the Roadway Plan of the General Plan's Circulation Element. This project includes the design, environmental clearance, right of way acquisition, and construction necessary to complete the 2.2 mile segment, which will be developed and constructed in phases: Phase 1: Diaz Road from Winchester Rd to Rancho California Rd and Phase 2: Diaz Road from Cherry Street to Winchester Rd has an unspecified funding source.
Benefit: This project improves traffic circulation by expanding an important north-south arterial on the west side of the City and completes a portion of the designated Western Bypass.
Core Value: Transportation Mobility and Connectivity
Project Status: Phase 1 is in the design and environmental clearance phase.
Construction of Phase 1 is anticipated late 2027.
Department: Public Works - Account No. 210.265.999.5800.PW17-25 / 521 Level: III
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
DIAZ ROAD EXPANSION
Circulation Project
67 89
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
Notes :
1. TUMF Zone funding is pursuant to approval of the Public Works Committee to program PAED and ENG to Diaz Road (designated Western Bypass).
After the approval of the WRCOG Executive Committee, an agreement between the City and WRCOG will need to be executed. After the PAED and ENG phases are complete, City will request that any unused funds be reprogrammed to the CON phase.
2. TUMF (WRCOG) Zone funding: $1,065,923 for Design/Environmental and $3,500,000 for Construction. The first Amendment to the agreement authorized additional $1,000,000 for Construction in FY 2024-25. The second Amendment to the agreement authorized additional $2,000,000 for Construction in FY 2025-26. The funding amount contained in the Agreement is a total of $7,565,923. City's maximum share in Fiscal Year 2025-26 is $6,731,000.
3. CPFCDS Grant funding in the amount of $2,000,000 has been earmarked for the City of Temecula.
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
DIAZ ROAD EXPANSION
Circulation Project
68 90
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 3,594,922 149,413 200,000 3,944,334 5804-Construction 73,730,095 17,224,905 90,955,000
5805-Construction Engineering 9,643,158 1,257,842 10,901,000 5802-Design & Environmental 19,444,503 181,265 19,625,768 5700-Land Acquisition 13,889,242 634,009 14,523,251
5240-Utilities 1,993 1,993
Total Expenditures 120,303,913 19,447,434 200,000 ----139,951,346 Source of Funds:
4271-CFD 01-02 (Harveston) 1,005,840 1,005,840
4666-Developer Contribution 1,000,000 1,000,000
4242-DIF-Street Improvements 75,360 75,360
4001-General Fund 4,236,174 4,236,174
4668-INFRA Grant 43,016,249 6,983,751 50,000,000
4170-Measure A 1,627,914 1,627,914
4002-Measure S 5,601,757 429,578 200,000 6,231,335
4438-Reimbursements 6,023,250 6,023,250
4465-SAFETEA-LU 1,439,840 162,521 1,602,360
4426-STIP-Surface Transportation
Improvement Program
38,478,724 9,121,276 47,600,000
4473-TUMF (CETAP/RCTC) (200,721) 999,668 798,947
4474-TUMF (RCTC) 3,690,124 (673,562)3,016,562
Project Description: This project includes the design and construction of the two lane northbound collector/distributer road system beginning north of the Winchester Road Interchange on-ramps and ending just north of the I-15/I-215 junction with connectors to I-15 and I-215.
Benefit: This project will address and improve traffic circulation in the City’s northern area by providing the northbound collector/distributer road system.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction completed in April 2025. Landscaping design is anticipated to continue through 2027. Landscaping construction completion is anticipated for Summer 2029.
Department: Public Works - Account No. 210.265.999.5800.PW16-01 / 726 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE II
Circulation Project
69 91
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
4472-TUMF (WRCOG) 16,000,583 733,021 16,733,604
Total Funding 120,995,093 18,756,253 200,000 ----139,951,346 Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. General Fund Includes Required Contribution match for TUMF (CETAP/RCTC) funds.
2. State Transportation Improvement Program-2014 RCTC Call for projects as approved by the Commission on November 13, 2013 ($10,000,000).
3. TUMF (RCTC)- Regional funding is pursuant to RCTC Agreement No. 06-72-048-00 for a total of $7,517,000 ($5,517,000-ROW; $2,000,000-PS&E). $200,000 City Match, Phase I expended $3,174,000-ROW; $2,000,000 PS&E; $200,000 City Match. Phase II expended $2,343,000 ROW.
4. TUMF (WRCOG) - TUMF Zone funding is pursuant to WRCOG Agreement No. 06-SW-TEM-1079 for a total of $11,575,000 reduced to $11,451,875 ($975,752-PA&ED; $8,801,875-PS&E; $1,674,248-ROW) for Phase I and Phase II.
5. TUMF (WRCOG) - TUMF Zone funding is pursuant to WRCOG Agreement No. 05-SW-TEM-1064 for $4,078,000 reduced to $4,043,000 ($108,724 PA&ED;3,934,296 PS&E) for Phase I and Phase II.
6. TUMF (WRCOG) - TUMF Zone Funding is pursuant to WRCOG Agreement No. 05-SW-TEM-1064 for $1,925,000-ROW. No expenditures for Phase I.
7. TUMF (CETAP/RCTC) - Funding is pursuant to the RCTC Agreement No. 17-73-007-00 in the amount of $1,472,509 ($673,562 ROW; $798,947 DESIGN; $106,603 City Match).
8. Developer Contribution reflects extraordinary benefit payments received from the Solana Winchester and Prado Developments. Solana Winchester in the amount of $395,000 and Prado in the amount of $605,000.
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE II
Circulation Project
70 92
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 263,589 543,411 750,000 450,000 450,000 2,457,000 5804-Construction 55,939,400 55,939,400
5805-Construction Engineering 5,800,000 5,800,000
5802-Design & Environmental 255,169 4,944,831 5,200,000 5700-Land Acquisition 4,564,750 185,044 3,000,000 7,749,794 Total Expenditures 5,083,508 5,673,286 --3,750,000 62,189,400 450,000 77,146,194 Source of Funds:
4165-Affordable Housing 1,669,794 1,669,794
4001-General Fund 30,000 30,000
4002-Measure S 343,697 548,120 891,817
4438-Reimbursements 165,183 165,183
4426-STIP-Surface Transportation
Improvement Program
5,000,000 5,000,000
4472-TUMF (WRCOG) 1,324,898 1,675,102 3,000,000
4452-Unspecified 3,750,000 62,189,400 450,000 66,389,400 Total Funding 3,533,572 7,223,222 --3,750,000 62,189,400 450,000 77,146,194 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the design and construction of the complete improvements of the French Valley Parkway Interchange overcrossing and northbound onramps.
Benefit: This project will address and improve traffic circulation in the City’s northern area by providing another alternative for crossing Interstate 15 and access to northbound Interstate 15.
Core Value: Transportation Mobility and Connectivity
Project Status: Project is in the Design Phase.
Department: Public Works - Account No. 210.265.999.5800.PW19-03 / 728 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE III
Circulation Project
71 93
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
Notes :
1. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of Winchester Interchange pursuant to 2009 Nexus - $9,822,980.00
2. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of French Valley Interchange pursuant to 2009 Nexus - $43,480,000.00.
3. TUMF (WRCOG) - TUMF Zone Funding for right-of-way (ROW) pursuant to Agreement No. 20-SW-TEM-1197 - $1,500,000
4. TUMF (WRCOG) - TUMF Zone Funding for right-of-way (ROW as approved by WRCOG for FY 2023-24, $1,500,000) - Amendment of Agreement No. 20- SW-TEM-1197.
5. State Transportation Improvement Program - Riverside County Transportation Commission (RCTC) approved funding at 10/11/2023 meeting. California Transportation Commission approved.
6. Affordable Housing funding reflects the acquisition of land with bond proceeds from the 2017 Tax Allocation Housing Bonds, to be used for a potential future Affordable Housing project.
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE III
Circulation Project
72 94
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 3,500,000 3,500,000
5807-Caltrans Oversight 24,000,000 24,000,000
5804-Construction 128,000,000 128,000,000
5805-Construction Engineering 6,000,000 6,000,000
5802-Design & Environmental 15,500,000 15,500,000
5700-Land Acquisition 4,400,000 4,400,000
Total Expenditures ----181,400,000 181,400,000
Source of Funds:
4452-Unspecified 181,400,000 181,400,000
Total Funding ----181,400,000 181,400,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of Winchester Interchange pursuant to 2009 Nexus - $9,822,980.00
2. TUMF (WRCOG) - TUMF Zone Funding is eligible for construction of French Valley Interchange pursuant to 2009 Nexus - $43,480,000.00 Project Description: This project includes the design and construction of the remaining improvements for French Valley Parkway Interchange including the southbound collector/distributor road system and the braided offramps and onramps.
Benefit: This project will address and improve traffic circulation in the City’s northern area by providing a full service interchange with on and off ramps in both directions.
Core Value: Transportation Mobility and Connectivity
Project Status: Work on this project will begin once funds are available.
Department: Public Works - Account No. 210.265.999.5800.PW28-99 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE IV
Circulation Project
73 95
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 342,106 132,921 475,027
5804-Construction 4,736,586 1,418,402 6,154,988
5805-Construction Engineering 1,114,335 105,665 1,220,000 5802-Design & Environmental 1,373,163 35,532 1,408,695
Total Expenditures 7,566,190 1,692,520 -----9,258,710
Source of Funds:
4001-General Fund 1,638,435 270,275 1,908,710
4078-Reimbursement-Pechanga IGA 2,500,000 2,500,000
4438-Reimbursements 100,000 100,000
4484-SHOPP 1,250,000 1,250,000
4473-TUMF (CETAP/RCTC) 2,071,971 1,428,029 3,500,000
Total Funding 7,560,406 1,698,304 -----9,258,710
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. SHOPP - State Highway Operation and Protection Program and Minor Program
2. RCTC Agreement No. 22-73-032-00; City Agreement 2022-035
3. Reimbursement of $100,000 reflects contribution from the City of Murrieta Project Description: This project includes the design and construction of a single auxiliary lane, northbound Interstate 15 (I-15) connecting the Temecula Parkway on-ramp to the Rancho California Road off-ramp.
Benefit: This project provides an operational improvement to relieve congestion on northbound I-15. It represents one of several operational improvements identified by the Move I-15 Regional Task Force to address congestion on I-15.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction was completed July 2025.
Department: Public Works - Account No. 210.265.999.5800.PW19-02 / 609 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15 CONGESTION RELIEF
Circulation Project
74 96
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 1,548,027 246,505 1,794,533
5804-Construction 26,582,444 990,465 27,572,909
5805-Construction Engineering 4,063,329 237,949 4,301,278 5802-Design & Environmental 4,116,400 101,527 4,217,927 5700-Land Acquisition 13,032,881 150,847 13,183,728
5240-Utilities 20,027 1,496 21,523
Total Expenditures 49,363,108 1,728,789 -----51,091,897 Source of Funds:
4273-CFD 03-01 (Crowne Hill) 502,211 502,211
4438-Reimbursements 739,192 694,068 1,433,260
4466-Reimbursements/Other 1,190,582 1,190,582
4465-SAFETEA-LU 1,439,839 1,439,839
4460-Senate Bill 621 14,446,520 160,000 14,606,520
4439-STP (RCTC) 12,279,728 696,272 12,976,000
4473-TUMF (CETAP/RCTC) 5,352,215 47,785 5,400,000
4474-TUMF (RCTC) 4,452,000 4,452,000
4472-TUMF (WRCOG) 5,567,289 3,524,196 9,091,485
Total Funding 45,969,577 5,122,321 -----51,091,897
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the construction of a ramp system improving access to Interstate 15 from State Route 79 South, to accommodate traffic generated by future development anticipated in the City’s General Plan as well as regional traffic volume forecasted through 2037.
Benefit: This project will improve circulation and freeway access at the Interstate 15 and State Route 79 South intersection.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction was completed in April 2020. City is working with Caltrans on transference of project rights of way to the State.
Department: Public Works - Account No. 210.265.999.5800.PW04-08 / 662 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15/STATE ROUTE 79 SOUTH ULTIMATE INTERCHANGE
Circulation Project
75 97
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
Notes :
1. SAFETEA-LU - Funding is pursuant to Authorization/Agreement Summary (E-76) (63.51% of Federal Participating Costs, up to $1,439,840)
2. STP (RCTC) - Funding is pursuant to Authorization/Agreement Summary (E-76)(63.51% of Federal Participating Costs, up to $12,976,000)
3. TUMF (RCTC/Region) - Funding is pursuant to RCTC Agreement No. 06-72-506 ($4,452,000 Total)
4. TUMF (RCTC/CETAP) - Funding is pursuant to RCTC Agreement No. 11-72-041-00 ($5,400,000 Total;$1,400,000 ROW;$4,000,000 CON).
5. TUMF (WRCOG) - Funding is pursuant to WRCOG Agreement 13-SW-TEM-1163($10,025,244 CON); Returned $933,760 unused to TUMF (WRCOG).
6. Pursuant to RCWD UA 23316 - RCWD shall reimburse City for actual costs of Additive Bid No. 01 ($280,560)
7. Pursuant to EMWD UA 23317 - EMWD shall reimburse City for actual costs of Additive Bid No. 02 ($415,000)
8. Revenues collected on Lease Agreement with Front Street - Service Station, LP dated September 11, 2013 (est. $740,000) City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15/STATE ROUTE 79 SOUTH ULTIMATE INTERCHANGE
Circulation Project
76 98
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 5,847 163,153 50,000 219,000
5804-Construction 2,350,000 750,000 3,100,000
5805-Construction Engineering 40,000 40,000
5802-Design & Environmental 400,000 400,000
5806-MSHCP 50,000 50,000
Total Expenditures 5,847 3,003,153 800,000 ----3,809,000 Source of Funds:
4002-Measure S 3,009,000 800,000 3,809,000
Total Funding - 3,009,000 800,000 ----3,809,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the redesign and reconstruction of the existing roundabout on Ynez Road at the intersection of La Paz Road. The modification improvements include the reconstruction of the raised traffic circle, entry medians, landscaping, lighting, and overall alignment of the existing roundabout.
Benefit: This project maintains the natural beauty of the community and improves traffic safety at this intersection.
Core Value: Healthy and Livable City
Project Status: This is a project is in design. Construction expected to start late 2026.
Department: Public Works - Account No. 210.265.999.5800.PW25-04 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
LA PAZ ROAD ROUNDABOUT RECONSTRUCTION
Circulation Project
77 99
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 666,838 100,000 766,838
Total Expenditures 666,838 -100,000 ----766,838
Source of Funds:
4242-DIF-Street Improvements 666,838 100,000 766,838
Total Funding 666,838 -100,000 ----766,838
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: Pursuant to Conditions of Approval, this project completes the missing portions of the raised landscaped median island on (a) Rancho California Road between Moraga Road to Lyndie Lane ($188,000), and (b) Ynez Road from Date Street to the City boundary ($100,000).
Benefit: This project improves traffic circulation by eliminating potential conflicts between left turn movements and through traffic on circulation element streets with a classification of major arterial or higher.
Core Value: Transportation Mobility and Connectivity
Project Status: This project will reimburse developers for eligible improvements upon project completion.
Department: Public Works - Account No. 210.265.999.5800.PWMP-09 / 622 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MEDIANS & PARKWAYS - CITYWIDE
Circulation Project
78 100
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 310,000 310,000
5804-Construction 600,000 350,000 950,000
5805-Construction Engineering 170,000 170,000
5802-Design & Environmental 320,000 320,000
Total Expenditures - 1,400,000 350,000 ----1,750,000
Source of Funds:
4002-Measure S 1,400,000 350,000 1,750,000
Total Funding - 1,400,000 350,000 ----1,750,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will construct the missing segment of sidewalk on the west side of Mercedes Street between Main Street and a point approximately 160' south of 3rd Street. Project will also construct crosswalks at 3rd street and a potential mid-block crosswalk connecting the southern limit of the project to the parking structure. The ADA portion of this project is funded under the ADA Transition Plan Implementation project.
Benefit: The project will provide ADA compliant pedestrian access on west side of Mercedes Street and additional pedestrian crossing to the parking structure.
Core Value: Healthy and Livable City
Project Status: Project is in design. Construction anticipated in FY26-27.
Department: Public Works - Account No. 210.265.999.5800.PW25-09 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MERCEDES STREET SIDEWALK
Circulation Project
79 101
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 466,002 145,399 150,000 761,401
5804-Construction 26,867,928 26,867,928
5805-Construction Engineering 2,829,455 918,545 3,748,000 5802-Design & Environmental 1,412,757 1,318,662 2,731,419 5700-Land Acquisition 26,928 3,557,072 3,584,000
5806-MSHCP 806,100 128,900 935,000
Total Expenditures 1,905,687 5,827,233 150,000 29,826,283 918,545 --38,627,748 Source of Funds:
4242-DIF-Street Improvements 1,181,533 1,096,387 150,000 8,761,283 918,545 12,107,748 4417-HBP-Highway Bridge Program 1,218,308 3,236,692 21,065,000 25,520,000 4002-Measure S 120,666 879,334 1,000,000
Total Funding 2,520,507 5,212,413 150,000 29,826,283 918,545 --38,627,748 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the design and construction of a new bridge crossing over Murrieta Creek between Rancho California Road and Winchester Road. This project also includes environmental studies, mitigation, acquisition of right-of-way, and installation of new traffic signals at Overland Drive intersections with Diaz Road and Enterprise Circle West and Commerce.
Benefit: This project improves traffic circulation and access to Overland Drive freeway over-crossing.
Core Value: Transportation Mobility and Connectivity
Project Status: This project is currently in design and is partially funded by the Federal Highway Bridge Program (HBP). During design phase staff will continue seeking additional programming and allocation of more HBP funds for the project.
Department: Public Works - Account No. 210.265.999.5800.PW16-05 / 648 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MURRIETA CREEK BRIDGE AT OVERLAND
Circulation Project
80 102
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
Notes :
1. Highway Bridge Program (HBP) Funding is 88.53% of participating items only.
2. DIF Street Improvements funding covers 11.47% of participating items and 100% of non-participating items.
3. HBP funding is authorized for reimbursement by Caltrans in a piecemeal fashion based on project progress, available funding in any given year, and the progress of other projects in the program.
4. When HBP funds are authorized for reimbursement by Caltrans, the reimbursable fiscal year may or may not be identified.
5. While the HBP recognizes the total project cost, it does not program its funds into the future.
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MURRIETA CREEK BRIDGE AT OVERLAND
Circulation Project
81 103
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 787,813 4,839 792,652
5804-Construction 1,086,122 235,920 1,322,042
5805-Construction Engineering 47,434 6,297 53,731
5802-Design & Environmental 720,946 9,768 730,714
5700-Land Acquisition 5,282,127 73,184 5,355,311
5806-MSHCP 21,968 21,968
5240-Utilities 36,120 5,359 41,480
Total Expenditures 7,982,529 335,368 -----8,317,897
Source of Funds:
4242-DIF-Street Improvements 8,082,475 8,082,475
4001-General Fund 235,422 235,422
Total Funding 8,317,897 ------8,317,897
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the design and construction of the extension of Overland Drive from Commerce Center Drive to Murrieta Creek, just west of Enterprise Circle West. This project also includes environmental studies, acquisition of right-of-way, new road improvements and installation of new traffic signals at Overland Drive intersections with Commerce Center Drive.
Benefit: This project improves traffic circulation and access to Overland Drive freeway over-crossing.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction is complete. The City Council accepted the improvements on December 10, 2019. Traffic signal at Commerce Center Drive is delayed until the Murrieta Creek Bridge is built.
Department: Public Works - Account No. 210.265.999.5800.PW16-06 / 602 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
OVERLAND DRIVE EXTENSION COMMERCE CENTER
Circulation Project
82 104
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 279,666 330,064 172,436 782,166
5804-Construction 3,648,704 2,008,000 5,656,704
5805-Construction Engineering 182,435 439,802 622,237
5802-Design & Environmental 385,742 535,858 34,795 956,395 5700-Land Acquisition 2,650 1,310,250 1,312,900
5806-MSHCP 182,435 182,435
Total Expenditures 668,058 6,189,746 2,482,597 172,436 ---9,512,837 Source of Funds:
4242-DIF-Street Improvements 671,306 1,321,714 2,482,597 172,436 4,648,053 4103-Street Maintenance Fund 4,864,784 4,864,784
Total Funding 671,306 6,186,498 2,482,597 172,436 ---9,512,837 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the design, environmental document, and construction for the widening of Overland Drive from Jefferson Avenue to Commerce Center Drive. The project also includes right of way acquisition.
Benefit: This project improves traffic circulation by eliminating the bottleneck of Overland Drive and create a continuous improved Overland Drive corridor from Margarita Road to Enterprise Circle West. Also, this project will facilitate meeting the traffic mitigation requirements for the Murrieta Creek Bridge at Overland Drive project.
Core Value: Transportation Mobility and Connectivity
Project Status: Project is currently in design. Right of way acquisition is anticipated in FY2026-27.
Department: Public Works - Account No. 210.265.999.5800.PW20-11 / 783 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
OVERLAND DRIVE WIDENING
Circulation Project
83 105
Street and Limits
Useful
Life(Years)
Anticipated Year of
Construction & Estimated
Funds Available Funding Source
Prior Years Actual Expenditures $50,711,047
2025-26 Adjusted
Rancho Way (Diaz Rd. to Buisness Park Dr.)(10-20)
Felix Valdez (Vincent Moraga Dr. to Pujol St.) (10-20)
Santiago Road (East of bridge to Ynez Rd.) (10-20)
$6,800,734 RMRA ( 1 )
$1,224,000 Measure A
$8,024,734
2026-27
Pauba Road (Ynez Rd to Margarita Rd)(10-20)
Meadows Parkway (Temecula Parkway to Rancho California Rd)(10-20) $2,883,697 RMRA ( 1 )
$1,312,000 Measure A
$4,195,697
2027-28
Ynez Road (Rancho California Rd to Solana Wy)(10-20)
Nighthawk Pass (Butterfield Stage Road to Vail Ranch Parkway)(10-20) Rancho Vista Road (Ynez Rd to Margarita Rd)(10-20)
$3,743,911 RMRA ( 1 )
$598,460 Measure A
$4,342,371
2028-29
Peppercorn Drive (Deer Hollow Way to Redhawk Parkway)(10-20) Wolf Valley Road (Pechanga Parkway to Redhawk Parkway)(10-20) $3,940,332 RMRA ( 1 )
$551,866 Measure A
$4,492,198
2029-30
Old Town Front Street (s/o First St. to Rancho California Rd. )(10-20) Redhawk Parkway (Temecula Parkway to Vail Ranch Parkway (10-20) $3,929,296 RMRA ( 1 )
$262,904 Measure A
$4,192,200
2030-31
Rancho California Road (Vincent Moraga Rd. to Margarita Rd )(10-20) Margarita Road ( Rancho California Rd. to Winchester Rd.)(10-20) $3,812,417 RMRA ( 1 )
$574,162 Measure A
$4,386,579
Total $80,344,826
PAVEMENT REHABILITATION PROGRAM - CITYWIDE
Circulation Project
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
84 106
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 4,246,774 1,828,409 300,000 300,000 300,000 100,000 300,000 7,375,183 5804-Construction 41,287,359 5,967,112 3,645,697 3,742,371 3,892,198 3,892,200 3,786,579 66,213,517 5805-Construction Engineering 4,364,229 143,855 250,000 300,000 300,000 200,000 300,000 5,858,084 5802-Design & Environmental 801,851 96,192 898,042
Total Expenditures 50,700,213 8,035,568 4,195,697 4,342,371 4,492,198 4,192,200 4,386,579 80,344,826 Source of Funds:
4100-Gas Tax 1,200,000 1,200,000
4001-General Fund 5,692,614 5,692,614
4170-Measure A 25,650,726 1,224,000 1,312,000 598,460 551,866 262,904 574,162 30,174,118 4002-Measure S 2,000,000 2,000,000
4438-Reimbursements 308,054 308,054
4102-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 4103-Street Maintenance Fund 3,600,000 3,600,000
Total Funding 50,711,047 8,024,734 4,195,697 4,342,371 4,492,198 4,192,200 4,386,579 80,344,826 Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Road Repair and Accountability Act (RMRA)
Project Description: This project includes the environmental processing, design, construction of pavement rehabilitation, and reconstruction of major streets as recommended in the Pavement Management Program update.
Benefit: This project improves pavement conditions so that the transportation needs of the public, business industry, and government can be met.
Core Value: Transportation Mobility and Connectivity
Project Status: A priority list of rehabilitation projects from the Pavement Management Program is used to determine the projects to be undertaken.
Construction is completed annually based on the allocated funds.
Department: Public Works - Account No. 210.265.999.5800.PWPR-01 / 655 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PAVEMENT REHABILITATION PROGRAM - CITYWIDE
Circulation Project
85 107
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 135,284 69,716 300,000 505,000
5804-Construction 7,000,000 7,000,000
5805-Construction Engineering 200,000 200,000
5802-Design & Environmental 698,000 698,000
5240-Utilities 55,000 55,000
Total Expenditures 135,284 822,716 --- 7,500,000 -8,458,000 Source of Funds:
4666-Developer Contribution 57,200 57,200
4242-DIF-Street Improvements 115,254 635,546 750,800
4002-Measure S 24,333 125,667 150,000
4452-Unspecified 7,500,000 7,500,000
Total Funding 139,587 818,413 --- 7,500,000 -8,458,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Developer Contribution represents the Pervis Development's fair share of the medians.
Project Description: This project will design and construct missing raised medians on Rancho California Road between Humber Drive and Butterfield Stage Road in accordance with the City's General Plan. In addition, missing street improvements will be constructed on the north side of Rancho California Road between Riesling Court and Promenade Chardonnay Hills.
The improvements will include median curbs, curb and gutter, sidewalks, and landscape and irrigation.
Benefit: The raised medians will enhance the safety of the street. In addition, the landscaping of the proposed medians will improve the aesthetics of this road for motorists.
Core Value: A Safe and Prepared Community
Project Status: Project on hold pending available budget Department: Public Works - Account No. 210.265.999.5800.PW23-04 / 791 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
RANCHO CALIFORNIA ROAD MEDIAN IMPROVEMENTS
Circulation Project
86 108
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 80,747 10,000 10,000 10,000 110,747 5804-Construction 194,527 490,473 685,000
5601-Furnishings & Equipment 1,365,837 875,204 250,000 250,000 250,000 2,991,041 Total Expenditures 1,560,364 1,446,424 260,000 260,000 260,000 --3,786,788 Source of Funds:
4243-DIF-Traffic Signals 541,788 541,788
4002-Measure S 1,018,576 1,446,424 260,000 260,000 260,000 3,245,000 Total Funding 1,560,364 1,446,424 260,000 260,000 260,000 --3,786,788 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the enhancement and upgrade of existing traffic signal equipment at various signalized intersections citywide.
This includes replacement of traffic signal controllers, battery back-up systems, Light Emitting Diode (LED) traffic signal indications, traffic signal controller cabinets, service cabinets, safety street lighting, signal communication equipment, and fiber optic cable. This project will also include an upgrade of existing traffic signal conductors including conduit, service conductors, and detector cable to comply with current standards.
Benefit: This project enhances traffic safety and supports the long-term enhancements and rehabilitation of City assets and infrastructure.
Core Value: Transportation Mobility and Connectivity
Project Status: Enhancements will be completed on an ongoing basis.
Department: Public Works - Account No. 210.265.999.5800.PWTE-19 / 680 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
TRAFFIC SIGNAL - EQUIPMENT ENHANCEMENT PROGRAM - CITYWIDE Circulation Project
87 109
Total Project
Cost Year Funding Source
Prior Year Actual Expenditures 246,764$ Developer Contribution 1,299,810$ DIF-Traffic Signals
367,944$ Measure S
Total 1,914,518$
Rancho California Road at Tee Drive 3,236$ 2025-26 Developer Contribution 262,873$ DIF(Traffic)
427,056$ Measure S
Total 693,165$
375,000$ 2026-27 DIF(Traffic)
Total 375,000$
-$ 2027-28
-$
300,000$ 2028-29 DIF(Traffic)
Total 300,000$
-$ 2029-30
Total -$
-$ 2030-31
Total -$
3,282,683$
Prior Year Actual Expenditures 1,914,518$
Fiscal Year 2025-26 693,165$
Fiscal Year 2026-27 375,000$
Fiscal Year 2027-28 -$
Fiscal Year 2028-29 300,000$
Fiscal Year 2029-30 -$
Fiscal Year 2030-31 -$
TOTAL:3,282,683$
To
tal
(1) DIF Traffic Developer Reimbursement
De Portola Road at Campanula Way (East)(1)
Nicolas Road at Joseph Road
Margarita Road at Jedediah Smith Road
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
TRAFFIC SIGNAL INSTALLATION - CITYWIDE
Circulation Project
Signal Location
88 110
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 317,149 170,729 487,878
5804-Construction 1,564,416 396,984 375,000 300,000 2,636,400 5802-Design & Environmental 32,951 125,452 158,404
Total Expenditures 1,914,517 693,166 375,000 -300,000 --3,282,683 Source of Funds:
4666-Developer Contribution 246,764 3,236 250,000
4243-DIF-Traffic Signals 1,299,810 262,873 375,000 300,000 2,237,683 4002-Measure S 367,944 427,056 795,000
Total Funding 1,914,518 693,165 375,000 -300,000 --3,282,683 Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Developer Contribution from LS Terracina, LLC for developer share of the traffic signal.
Project Description: This project includes the design, construction, installation and modification of traffic signals at various locations throughout the City. The project also includes reimbursement for developer installed traffic signals.
Benefit: This project improves traffic safety and circulation throughout the City.
Core Value: Healthy and Livable City
Project Status: A priority list of traffic signals has been developed. The traffic signals scheduled for installation will be designed and constructed in the scheduled fiscal year in accordance with the budget. Reimbursements for developer installed traffic signals will be made as Development Impact Fees for Traffic Signals become available.
Department: Public Works - Account No. 210.265.999.5800.PWTS-06 / 682 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
TRAFFIC SIGNAL - INSTALLATION - CITYWIDE
Circulation Project
89 111
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 77,237 315,485 131,216 523,938
5804-Construction 2,280,000 1,310,356 3,590,356
5805-Construction Engineering 424,845 271,828 696,673
5802-Design & Environmental 360,335 443,270 803,605
5700-Land Acquisition 497,615 497,615
5806-MSHCP 120,000 18,400 138,400
Total Expenditures 437,571 4,081,216 1,731,800 ----6,250,587 Source of Funds:
4666-Developer Contribution 435,750 435,750
4242-DIF-Street Improvements 4,879 1,603,158 1,507,444 3,115,481 4025-Grants 37,880 2,437,120 2,475,000
4103-Street Maintenance Fund 224,356 224,356
Total Funding 478,509 4,040,278 1,731,800 ----6,250,587 Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Grants Funding Source reflects the 2023 RCTC Western Riverside County Regional call for projects using Measure A Regional Arterial (MARA) grant funds for $1,475,000 and the California State Assembly Bill (AB) 102 grant for $1,000,000.
2. Developer Contribution reflects fees paid by the Rancho Highlands Development for this project.
Project Description: This project includes widening the easterly side of Ynez Road, from Rancho Vista Road north roughly 1600 feet, to two lanes in each direction, and the completion of missing segments of curb and gutter, sidewalk, and striped medians, in coordination with adjacent development.
Benefit: This project improves traffic circulation by widening an important arterial road in this part of the City.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction is anticipated to start in FY2026-27.
Department: Public Works - Account No. 210.265.999.5800.PW23-02 / 534 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
YNEZ ROAD IMPROVEMENTS - PHASE I
Circulation Project
90 112
ϵϭ 113
92 114
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 1,261,000 1,261,000
Total Expenditures - 1,261,000 -----1,261,000
Source of Funds:
4165-Affordable Housing 700,000 700,000
4299-Contribution of Land 561,000 561,000
Total Funding - 1,261,000 -----1,261,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Affordable Housing reflects bond proceeds from the 2017 refinancing of the former Temecula Redevelopment Agency (RDA) 2010 and 2011 Tax Allocation Housing Bonds
Project Description: A project for Habitat for Humanity to construction six for-sale affordable/workforce housing units for low income buyers adjacent to previously constructed units located on parcels 922062010 and 922062016.
Benefit: Upon completion, the City will have an additional 6 affordable housing units, which will serve moderate and low income residents.
Core Value: Healthy and Livable City
Project Status: The project is currently in the entitlement phase with Planning.
Department: Community Development - Account No.
210.265.999.5800.AH22-01 / 827
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
HABITAT FOR HUMANITY - OLD TOWN UNITS
Housing Project
93 115
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 8,910,698 1,219,302 10,130,000
Total Expenditures 8,910,698 1,219,302 -----10,130,000
Source of Funds:
4165-Affordable Housing 8,910,698 718,445 9,629,143
4259-Uptown Temecula New Streets
In Lieu Fee
500,857 500,857
Total Funding 8,910,698 1,219,302 -----10,130,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Affordable Housing reflects bond proceeds from the 2017 refinancing of the former Temecula Redevelopment Agency 2010 and 2011 Tax Allocation Housing Bonds, paid with property tax increment collected within the boundaries of the former Redevelopment Agency. The bond issuances reflect interest rates ranging between 2-5% and fully mature by 12/15/2039.
Project Description: This project will provide funding for a 77-unit affordable multi-family housing community consisting of two residential buildings, a community building and tuck-under parking located at 28715 Las Haciendas, located in the Uptown Temecula Specific Plan Area. Funding for this project includes: a $8,910,698 Capital Loan from the available proceeds of the Successor Agency to the Temecula Redevelopment Agency 2017B Series Tax Allocation Refunding Bonds; a $718,445 Deferred Fee Loan for Development Impact Fees, Quimby, permit, Public Works and Fire fees related to the project; and a $500,857 Uptown Temecula Specific Plan New Streets In-Lieu Fee reimbursement for the costs of completing a new road connecting Las Haciendas and Calle Cortez.
Benefit: Upon completion, the City will have an additional 76 affordable housing units and one manager's unit. The affordable units will be available to extremely low, very low and low-income households.
Core Value: Healthy and Livable City
Project Status: This project was completed in Fiscal Year 2024-2025.
Department: Community Development - Account No.
210.265.999.5800.AH20-01 / 817
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
LAS HACIENDAS AFFORDABLE HOUSING PROJECT
Housing Project
94 116
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5802-Design & Environmental 1,000,000 1,300,000 2,300,000 5700-Land Acquisition 570,000 570,000
Total Expenditures - 1,000,000 570,000 1,300,000 ---2,870,000 Source of Funds:
4110-Community Reinvestment
Program
1,000,000 1,000,000
4299-Contribution of Land 570,000 1,300,000 1,870,000
Total Funding - 1,000,000 570,000 1,300,000 ---2,870,000 Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. The 4299 Contribution of Land amount will ultimately be determined by an independent market appraisal of the land at a point in time when the land is about to be transferred.
Project Description: The City of Temecula as Housing Successor to the Temecula Redevelopment Agency is the owner of vacant land located in the Uptown Temecula Specific Plan. The City plans to go through a request for proposal (RFP) and partner with an affordable housing developer, who will bring a high-quality affordable housing product to this area. The parcel is approximately 1.83 acres of land that is located near planned recreation areas, which will provide various amenities to the future residents of this affordable development. The future affordable development will assist the City in accomplishing the Uptown Temecula Specific Plan which intends to transform a suburban oriented commercial district into an urban mixed-use environment. This project is located near Jefferson Ave and the northern City limit (APNs: 910-262-061, 910-262-008, 910-262-007).
Benefit: Providing affordable/workforce housing to the community.
Core Value: Healthy and Livable City
Project Status: This project is in the initial stages of planning, with a request for proposal solicited in FY2026-27.
Department: Community Development - Account No.
210.265.999.5800.AH23-01
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
UPTOWN TEMECULA AFFORDABLE HOUSING SITE
Housing Project
95 117
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 6,710,000 6,710,000
Total Expenditures - 6,710,000 -----6,710,000
Source of Funds:
4165-Affordable Housing 2,710,000 2,710,000
4110-Community Reinvestment
Program
4,000,000 4,000,000
Total Funding - 6,710,000 -----6,710,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Affordable Housing funds represent the Supplemental Educational Revenue Augmentation (SERAF) repayments received by the City.
Project Description: A Disposition and Development Agreement (DDA) for Vine Creek Apartments, a 100% affordable, 60 unit development, was approved by the City Council in June 2019. The City pledged to contribute $6.71 million towards the project, including $698,281 in a deferred fee loan, $5,301,719 permanent loan, and $710,000 purchase loan. The Deferred Fee Loan of $698,281 consists of deferred Development Impact Fees (DIF), QUIMBY fees, permit fees, Public Works fees, and Fire fees for the Project, locked in at 2018-19 amounts. The Permanent Loan is limited to $1,301,719 in funds received by the City from Supplemental Educational Revenue Augmentation Fund (SERAF) Repayments, which have recently been approved by the State Department of Finance as part of the ROPS for the SARDA, and $4,000,000 in Community Reinvestment Program Funds. The Purchase Money Loan of $710,000 reflects the purchase price of the Real Property to be paid by the Developer to the City.
Benefit: Upon completion, the City will have an additional 60 affordable housing units, all of which will be at 60% of the area median income (AMI) or lower.
Core Value: Healthy and Livable City
Project Status: The project was completed in December 2025.
Department: Community Development - Account No.
210.265.999.5800.AH20-02 / 820
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
VINE CREEK AFFORDABLE HOUSING PROJECT
Housing Project
96 118
ϵϳ 119
98 120
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 320,164 191,153 78,660 78,660 78,660 78,660 78,660 904,617 5804-Construction 427,828 547,521 657,180 325,000 325,000 325,000 325,000 2,932,529 5805-Construction Engineering 5,054 32,446 37,500
5802-Design & Environmental 77,663 34,837 112,500
Total Expenditures 830,709 805,957 735,840 403,660 403,660 403,660 403,660 3,987,146 Source of Funds:
4140-CDBG 589,050 561,636 657,180 325,000 325,000 325,000 325,000 3,107,866 4002-Measure S 92,286 393,694 78,660 78,660 78,660 78,660 78,660 879,280 Total Funding 681,336 955,330 735,840 403,660 403,660 403,660 403,660 3,987,146 Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. This is the master CDBG project. The City receives approximately $325,000 in CDBG funds annually used for construction. The City match is approximately $78,660 for design and administration.
Project Description: The Americans with Disabilities Act (ADA) Transition Plan Implementation will utilize the recently completed Transition Plan and implement its recommendations based on the established priorities. The implementation will include improvements to public facilities, programs, and public rights of way to modify/remove identified barriers over a fiscally constrained framework.
Benefit: This project furthers the City’s Core Values of A Safe and Prepared Community, Transportation Mobility and Connectivity, as well as Equity.
Core Value: Equity
Project Status: The Americans with Disabilities Act (ADA) Transition Plan Upgrade was completed in Fiscal Year 2017-18. The implementation of the Transition Plan recommendation is an ongoing program.
Department: Public Works - Account No. 210.265.999.5800.PWAT-27 / 612 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
AMERICANS WITH DISABILITIES ACT (ADA) TRANSITION PLAN IMPLEMENTATION Infrastructure Project
99 121
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 8,887 187,113 196,000
5804-Construction 300,782 300,782
5805-Construction Engineering 15,000 15,000
5802-Design & Environmental 57,066 166,370 223,436
Total Expenditures 65,953 669,265 -----735,218
Source of Funds:
4002-Measure S 67,525 667,693 735,218
Total Funding 67,525 667,693 -----735,218
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will design and install wayfinding signs for the Auto mall. Several wayfinding signs will be installed at key locations.
Benefit: Installation of the wayfinding signs will assist patrons and the public to easily find their destinations.
Core Value: Economic Prosperity
Project Status: This project is anticpated to be in construction in FY2026-27.
Department: Public Works - Account No. 210.265.999.5800.CM22-01 / 790 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
AUTO MALL WAYFINDING SIGNS
Infrastructure Project
100 122
Total Project
Cost Year Funding Source
Prior Year Actual Expenditures 326,878$ AB 2766 19,857$ Beyond Grant
72,177$ DIF - Open Space & Trails
Total 418,912$
Various Projects - Bike Lane and Trail Program 187,835$ 2025-26 AB 2766 187,835$
Various Projects and Wayfinding Signs 170,000$ 2026-27 AB 2766 170,000$
175,000$ 2027-28 AB 2766
Total 175,000$
185,000$ 2028-29 AB 2766
Total 185,000$
Future Projects 185,000$ 2029-30 AB 2766
Total 185,000$
Future Projects 185,000$ 2030-31 AB 2766
959,558$ Unspecified
Total 1,144,558$
2,466,305
Prior Year Actual Expenditures 418,912$
Fiscal Year 2025-26 Adjusted 187,835$
Fiscal Year 2026-27 170,000$
Fiscal Year 2027-28 175,000$
Fiscal Year 2028-29 185,000$
Fiscal Year 2029-30 185,000$
Fiscal Year 2030-31 1,144,558$
TOTAL:2,466,305$
Total
North General Kearney Trail
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BIKE LANE AND TRAIL PROGRAM - CITYWIDE
Infrastructure Project
Bike Lane and Trail Program
Total
Yukon to Ynez
101 123
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 9,472 9,778 19,250
5804-Construction 122,399 173,830 170,000 175,000 185,000 185,000 1,144,558 2,155,787 5802-Design & Environmental 287,042 4,227 291,269
Total Expenditures 418,913 187,835 170,000 175,000 185,000 185,000 1,144,558 2,466,305 Source of Funds:
4427-Assembly Bill 2766 326,878 187,835 170,000 175,000 185,000 185,000 185,000 1,414,713 4478-Beyond Grant 19,857 19,857
4051-DIF-Open Space & Trails 72,177 72,177
4452-Unspecified 959,558 959,558
Total Funding 418,912 187,835 170,000 175,000 185,000 185,000 1,144,558 2,466,305 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: The Multi-Use Trails and Bikeways Master Plan was completed in Fiscal Year 2015-16. The Plan includes new trail and bikeway information sheets detailing constraints, solutions, surface types, widths, and estimated construction costs. The City is a Silver Level Bicycle Friendly Community and this project allows for continued implementation of facilities and programs, which further the City's commitment to providing a safe and convenient network that connects schools, parks, open space, shopping, and employment centers.
Benefit: This project provides alternative modes of transportation and increases connectivity and accessibility to Old Town, Wine Country, and the City’s many schools, parks, trails, and open space areas.
Core Value: A Sustainable and Resilient City
Project Status: Improvements will be made on an ongoing basis.
Department: Community Development - Account No.
210.265.999.5800.CD18-01 / 703
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BIKE LANE AND TRAIL PROGRAM - CITYWIDE
Infrastructure Project
102 124
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 94,284 10,716 80,000 185,000
5804-Construction 397,058 258,000 152,000 807,058
5805-Construction Engineering 30,000 30,000
5802-Design & Environmental 6,560 23,440 30,000
5806-MSHCP 32,750 32,750
Total Expenditures 497,902 354,906 232,000 ----1,084,808 Source of Funds:
4051-DIF-Open Space & Trails 232,000 232,000
4002-Measure S 352,808 352,808
4528-Service Level C - Zone 28 499,308 692 500,000
Total Funding 499,308 353,500 232,000 ----1,084,808
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the installation of solar lights along the Great Oak Trail adjacent to the northeast side of Pechanga Parkway from Deer Hollow Way to Loma Linda Road (approximately 1.70 miles, or 8,976 feet).
Benefit: This project improves pedestrian and biking experience and enhances safety along the subject trail.
Core Value: A Safe and Prepared Community
Project Status: This is currently in the design phase. Construction is anticipated to start in FY2026-27.
Department: Public Works - Account No. 210.265.999.5800.PW21-16 / 768 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BIKE LANE AND TRAIL PROGRAM - GREAT OAK TRAIL LIGHTING
Infrastructure Project
103 125
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 268,753 92,059 175,000 535,812
5804-Construction 7,827,000 7,827,000
5805-Construction Engineering 200,000 200,000
5802-Design & Environmental 332,641 100,266 432,907
5806-MSHCP 391,350 391,350
Total Expenditures 601,394 192,326 --8,593,350 --9,387,069 Source of Funds:
4427-Assembly Bill 2766 67,845 67,845
4002-Measure S 533,713 192,161 725,874
4452-Unspecified 8,593,350 8,593,350
Total Funding 601,558 192,161 --8,593,350 --9,387,069
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes an agreement with Riverside County Flood Control to install new gates, pave and stripe an existing maintenance road for a Class I Trail. The route would parallel Temecula Creek on the South side, connecting Butterfield Stage Road to Loma Linda Road, terminating at the alignment with Avenida de Missiones. This section of trail is part of the proposed seventeen (17) mile Temecula Loop Trail identified in the Multi-Use Trails and Bikeways Master Plan.
Benefit: This section of trail would satisfy the City’s Core Values of a Healthy and Livable City, Transportation Mobility and Connectivity, and A Sustainable City.
Core Value: Healthy and Livable City
Project Status: Design was halted at the 90% level in FY2025-26 while the City pursues outside funding sources for construction.
Department: Public Works - Account No. 210.265.999.5800.PW19-11 / 720 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BIKE LANE AND TRAIL PROGRAM - TEMECULA CREEK SOUTH SIDE TRAIL Infrastructure Project
104 126
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 50 24,950 25,000
5804-Construction 249,500 249,500
Total Expenditures 50 274,450 -----274,500
Source of Funds:
4662-HSIP-Highway Safety
Improvement Program
224,550 224,550
4002-Measure S 50 49,900 49,950
Total Funding 50 274,450 -----274,500
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023
2. City match is $24,550 based on the HSIP application and grant. Additional appropriated local funds are for administration Project Description: This project will install greenback bike lane pavement markings/legends on various bicycle corridors throughout the City.
Benefit: This project improves bicycle safety and circulation throughout the City.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction is anticipated to start in Summer 2026.
Department: Public Works - Account No. 210.265.999.5800.PW23-10 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BIKE LANE UPGRADES - CITYWIDE
Infrastructure Project
105 127
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 171,619 102,101 117,360 100,000 491,080 5804-Construction 705,000 360,000 200,000 1,265,000
5805-Construction Engineering 4,245 17,355 10,800 32,400 5802-Design & Environmental 902 25,098 26,000
Total Expenditures 176,766 849,554 - 488,160 - 300,000 -1,814,480 Source of Funds:
4170-Measure A 185,104 841,216 488,160 300,000 1,814,480 Total Funding 185,104 841,216 - 488,160 - 300,000 -1,814,480 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will remedy deficiencies in bridges to keep them safe for motorists. The work can include, but is not limited to bridge deck surface treatment, crack sealing, rubber seal replacement, rail replacement, and scour protection. In accordance with US Code 23 U.S.C. 151 (U.S. Department of Transportation, Federal Highway Administration), States' Department of Transportation (Caltrans in California) are responsible for inspecting all public highway bridges within the State, except federal and tribal ones, for compliance with the National Bridge Inspection Standards (NBIS). Caltrans provides the City with annual inspection reports of all bridges in Temecula. The City is responsible for fixing deficiencies of bridges within its jurisdiction.
Benefit: This project maintains the City's bridges
Core Value: A Safe and Prepared Community
Project Status: Ongoing maintenance of bridges throughout the City.
Department: Public Works - Account No. 210.265.999.5800.PWBM-05 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BRIDGE MAINTENANCE
Infrastructure Project
106 128
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 158,660 100,000 258,660
5804-Construction 4,366,971 2,407,009 1,400,000 1,000,000 1,000,000 1,000,000 1,000,000 12,173,980 5802-Design & Environmental 46,026 46,026
5601-Furnishings & Equipment 12,826 2,174 15,000
5809-Information Technology 30,000 30,000
Total Expenditures 4,584,484 2,439,183 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 12,523,666 Source of Funds:
4245-DIF-Corporate Facilities 280,000 280,000
4350-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 4001-General Fund 1,750,000 1,750,000
Total Funding 4,584,482 2,439,184 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 12,523,666 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project facilitates rehabilitation projects at City owned and operated facilities such as the Pat Birdsall Sports Park Concessionaire Building, Old Town Parking Garage, CRC Amphitheater, CRC Audio Systems, Temecula SAFE House, exterior painting of Chapel of Memories, LED lighting fixture retrofits at various sites, rehabilitation of facility parking lots. The rehabilitation projects could include, but are not limited to, parking lot lighting replacements, heating ventilation and air conditioner (HVAC) upgrades, roof repairs, carpet and flooring replacement, cabinet re-facing/replacement, concrete repairs, replacement of fencing and repair of swimming pools.
Benefit: This project minimizes emergency repair costs, prolongs the service life of facilities, and upgrades aging facility components.
Core Value: Healthy and Livable City
Project Status: A priority list of rehabilitation projects has been developed.
Rehabilitation projects are completed on an ongoing basis.
Department: Public Works - Account No. 210.265.999.5800.PWFR-11 / 701 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CITY FACILITIES REHABILITATION
Infrastructure Project
107 129
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 25,000 25,000
5804-Construction 112,748 112,252 225,000
5802-Design & Environmental 7,200 17,800 25,000
Total Expenditures 119,948 155,052 -----275,000
Source of Funds:
4245-DIF-Corporate Facilities 25,000 25,000
4002-Measure S 142,754 107,246 250,000
Total Funding 142,754 132,246 -----275,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project provides for security enhancements to the City's public buildings to ensure the safety of the public and employee population. Projects to include, but are not limited to, installation of security glass, keyless entry access improvements, security bollards, enhanced lighting, and vehicular and pedestrian security gates.
Benefit: To protect property and life.
Core Value: A Safe and Prepared Community
Project Status: Projects to be completed in FY2025-26.
Department: - Account No. 210.265.999.5800.PWFS-08 / 779 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CITY FACILITY SECURITY
Infrastructure Project
108 130
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 2,593 2,593
5804-Construction 3,598,874 3,598,874
5802-Design & Environmental 138,347 138,347
Total Expenditures 3,739,813 ------3,739,813
Source of Funds:
4245-DIF-Corporate Facilities 752,087 752,087
4256-DIF-Police Facilities 1,121,113 1,121,113
4002-Measure S 2,164,091 (297,477)1,866,613
Total Funding 4,037,291 (297,477)-----3,739,813
Future Operating & Maintenance Costs:
Total Operating Costs 300,000 300,000 300,000 300,000
Notes :
1. Operating & Maintenance costs reflect the ongoing software and equipment maintenance associated with the infrastructure of the security camera system, as well as video storage in accordance with the City's retention policy.
2. Negative variance in Measure S funding represents project completion final accounting activities.
Project Description: The City Security Camera System will be utilized by the City to support public safety, traffic management, and asset protection activities in service to its citizens. The City’s goal for the system is to standardize and integrate existing and new video management systems to provide video technology to improve overall safety and security to the residents of the City.
Benefit: To protect property and life. This project provides Police the ability to perform virtual patrols, maximizing staff efficiency and resources.
Core Value: Healthy and Livable City
Project Status: Project was completed in Fiscal Year 2024-25.
Department: Information Technology - Account No. 210.265.999.5800.PW17 -01 / 711
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CITY SECURITY CAMERA SYSTEM
Infrastructure Project
109 131
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 950,000 950,000
Total Expenditures - 950,000 -----950,000
Source of Funds:
4110-Community Reinvestment
Program
179,000 179,000
4002-Measure S 771,000 771,000
Total Funding - 950,000 -----950,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: The Citywide Community Wildfire Protection Plan will evaluate wildfire risk throughout the City and develop a comprehensive plan and strategies for protecting the highest risk fire areas throughout the City.
Benefit: Greenhouse gases would be reduced with a plan to prevent wildfires, reduce burn areas, and reduce the threat to residents, businesses, and City infrastructure enhancing preparedness to protect of life and property.
Core Value: A Safe and Prepared Community
Project Status: New Project. Analysis began in December 2025 Department: Community Development - Account No.
210.265.999.5800.CD26-01
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CITYWIDE COMMUNITY FIRE PROTECTION PLAN
Infrastructure Project
110 132
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 199,211 72,086 271,297
5802-Design & Environmental 453,970 126,286 60,000 640,256 Total Expenditures 653,181 198,372 ----60,000 911,553
Source of Funds:
4002-Measure S 653,388 198,165 851,553
4452-Unspecified 60,000 60,000
Total Funding 653,388 198,165 ----60,000 911,553
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: The City has prepared a report that shows all drainage courses within the City and existing drainage improvements that have been constructed to control storm runoff. Periodically, this report will need to be reviewed and updated to include all improvements since the last report.
Benefit: The Master Drainage Plan will provide the City with sufficient up-to- date and accurate information to systematically plan and manage its drainage systems and provide higher level of flood protection to its residents, communities, properties, and infrastructure investments.
Core Value: A Safe and Prepared Community
Project Status: Analysis and evaluation of capital improvement projects will continue into FY2027-28.
Department: Public Works - Account No. 210.265.999.5800.PW19-16 / 722 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CITYWIDE DRAINAGE MASTER PLAN
Infrastructure Project
111 133
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 114,175 15,825 50,000 180,000
5809-Information Technology 776,319 470,399 1,246,718
Total Expenditures 890,494 486,224 50,000 ----1,426,718 Source of Funds:
4002-Measure S 613,184 613,184
4325-Technology Replacement Fund 219,752 543,782 50,000 813,534 Total Funding 832,936 543,782 50,000 ----1,426,718
Future Operating & Maintenance Costs:
Total Operating Costs 86,000 86,000 86,000 86,000
Notes :
1. Operating & Maintenance costs reflect ongoing software maintenance for new Financial System.
Project Description: This project includes the implementation costs associated with the upgrade of the City's Financial Accounting System. The City's current system was implemented in 2001, and a successor Enterprise Resource Planning (ERP) solution is available. The ERP system will integrate with existing software platform used Citywide and will provide upgraded core applications for financial management and human resource management.
Benefit: This project increases efficiencies, accountability and transparency of the City's financial, accounting and human resource information.
Core Value: Accountable and Responsive City Government
Project Status: The implementation of the Financial modules were completed in FY2023-24. The Human Resources and Payroll module implementation is anticipated for completion in FY2026-27.
Department: Public Works - Account No. 210.265.999.5800.FN19-01 / 724 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CITYWIDE FINANCIAL SYSTEM UPGRADE
Infrastructure Project
112 134
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 3,000,000 3,000,000
Total Expenditures ---3,000,000 3,000,000
Source of Funds:
4350-Facilities Replacement Fund 3,000,000 3,000,000
Total Funding ---3,000,000 3,000,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: HVAC system upgrade at the Civic Center Benefit: Upgrade aging facility components
Core Value: Healthy and Livable City
Project Status: New proposed project for future years
Department: Public Works - Account No. 210.265.999.5800.NEW PW26-04 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CIVIC CENTER HVAC SYSTEM UPGRADE
Infrastructure Project
113 135
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 461,409 6,074 467,483
5804-Construction 4,060,087 33,684 4,093,771
5805-Construction Engineering 346,999 105,191 452,190
5802-Design & Environmental 703,240 339,521 1,042,761
5809-Information Technology 79,669 79,669
Total Expenditures 5,651,404 484,470 -----6,135,874
Source of Funds:
4244-DIF-Park & Rec Improvements 1,521,208 1,521,208
4240-DIF-Quimby 3,050,592 (15,000)3,035,592
4002-Measure S 1,079,893 499,181 1,579,074
Total Funding 5,651,693 484,181 -----6,135,874
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project facilitates the rehabilitation of the CRC, including the expansion and reconfiguration of the teen center; renovation of the building including safety features, flooring, roof, and restroom facility access; ADA compliance; renovation and expansion of existing office space and rec rooms including AV upgrades; expanded storage space and upgraded kitchen equipment. Phase 1 includes full repair, maintenance, and updating to current standards. Phases 2 and 3 include expansion and improvements throughout the facility.
Benefit: This project will create a safe, engaging place for teens to participate in a variety of activities, while also providing necessary renovations to the facility.
Core Value: Healthy and Livable City
Project Status: Phase 1 construction is complete.
Department: Public Works - Account No. 210.265.999.5800.PW19-07 / 730 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
COMMUNITY RECREATION CENTER (CRC) RENOVATIONS
Infrastructure Project
114 136
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 216,004 161,996 378,000
Total Expenditures 216,004 161,996 -----378,000
Source of Funds:
4025-Grants 266,598 111,402 378,000
Total Funding 266,598 111,402 -----378,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Funding Source is CalFire Grant No. 5GG20167
Project Description: The Community Wildfire Protection Plan, entitled Temecula Creek Wildfire Risk Reduction Community Plan, will utilize the highest-risk and most complex property within the City of Temecula as a model for how to develop comprehensive planning for other properties subject to fire risk throughout the City.
Benefit: The project is critically needed for 177 acres in Temecula Creek within the Very High Fire Severity Zone. Greenhouse Gases (GHG) would be reduced with a plan to prevent wildfires, reduce burn area and protect the adjacent 28,491 acres and 3,048 structures worth an estimated $1.5 billion.
The City will use this plan in other fire risk areas with sensitive habitat, and share it statewide to deter even more fires to reduce GHG.
Core Value: A Safe and Prepared Community
Project Status: The project is complete.
Department: Community Development - Account No.
210.265.999.5800.CD23-01 / 772
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
COMMUNITY WILDFIRE PROTECTION PLAN
Infrastructure Project
115 137
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 690,806 989,194 1,680,000
5802-Design & Environmental 49,517 1,820,483 1,870,000
Total Expenditures 740,323 2,809,677 -----3,550,000
Source of Funds:
4001-General Fund 1,057,141 1,682,859 2,740,000
4025-Grants 731,488 78,512 810,000
Total Funding 1,788,629 1,761,371 -----3,550,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: California State Law requires that each city adopt a comprehensive General Plan as the fundamental policy document for future development. It provides the framework for management and utilization of the City's physical, economic, and human resources. This document guides civic decisions regarding land use, conservation of existing housing and the provision of new dwelling units, the provisions of supporting infrastructure and public services, the protection of environmental resources, the allocation of fiscal resources, and the protection of residents from natural and human-caused hazards. The City's General Plan was last updated in 2005. The General Plan will serve as the blueprint for the community for approximately the next fifteen years. This project will update all of the elements of the General Plan and will also include the implementation of new legislation to ensure compliance with State Law.
Benefit: The General Plan update satisfies all six of the City's core values:
Healthy and Livable City; Economic Prosperity; Safe and Prepared Community; Sustainable City; Transportation, Mobility, and Connectivity; and Accountable and Responsive Local Government.
Core Value: Healthy and Livable City
Project Status: The General Plan Update will take approximately two years, starting in mid-2025 and ending in mid-2027.
Department: Community Development - Account No.
210.265.999.5800.PW21-02 / 777
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
COMPREHENSIVE GENERAL PLAN UPDATE
Infrastructure Project
116 138
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
Notes :
1. Grants funding includes: $500,000 in Local Early Action Planning Grant Program (LEAP) funding provided by the California Department of Housing and Community Development (HCD) and $310,000 in Senate Bill 2 Planning Grant.
2. In addition to these grants, $175,000 in funding has been granted through the Sustainable Communities Program, which supplemented Planning Department operating funds to start the General Plan update process and was reflected in account 001.161.999.5248. This grant was used for CEQA VMT analysis for Traffic Impact Analysis Guidelines, as required by SB743.
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
COMPREHENSIVE GENERAL PLAN UPDATE
Infrastructure Project
117 139
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 99,687 313 100,000
5804-Construction 228,681 164,048 392,729
Total Expenditures 328,369 164,361 -----492,729
Source of Funds:
4427-Assembly Bill 2766 47,000 47,000
4665-MSRC-Mobile Source Air Review
Committee Grant
111,574 29,426 141,000
4438-Reimbursements 5,800 5,800
4145-TEAM 188,277 110,652 298,929
Total Funding 346,851 145,878 -----492,729
Future Operating & Maintenance Costs:
Total Operating Costs (3,100)(3,100) (3,100)(3,100)
Project Description: This project includes the design and construction of improvements to accommodate, procure, and install electric vehicle service equipment (EVSE), more commonly known as "charging stations" at various City facilities.
Benefit: This project encourages alternative transportation options.
Core Value: A Sustainable and Resilient City
Project Status: Installations at the Park & Ride on Temecula Parkway, Sixth Street parking lot, parking structure on Mercedes Street, and at the Mike Naggar Community Park are complete. Installation of 8 charging stations at the City's Field Operations Center has been completed. One new site will be identified.
Department: Public Works - Account No. 210.265.999.5800.PW21-09 / 683 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
ELECTRIC VEHICLES CHARGING STATION
Infrastructure Project
118 140
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5802-Design & Environmental 132,165 835 133,000
5610-Equipment 75,000 75,000
Total Expenditures 132,165 75,835 -----208,000
Source of Funds:
4256-DIF-Police Facilities 12,015 (12,015)-
4002-Measure S 120,150 87,850 208,000
Total Funding 132,165 75,835 -----208,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Negative adjusted budget in FY2025-26 driven by reprogramming of DIF Police Funds to Traffic Signal Fiber Optic Extension project.
Project Description: This project will provide for the design and installation of fiber optic cable and conduit at various locations throughout the City.
Benefit: This project will upgrade the City's fiber optic communications and traffic signal system equipment throughout the City, including preparation of a Communications System Master Plan to guide the implementation of future communications and technology improvements connecting traffic signals, facilities and other infrastructure throughout the City. This project will enhance the City's core value of a safe and prepared community, as well as transportation mobility and connectivity as it relates to traffic signal communication.
Core Value: A Safe and Prepared Community
Project Status: Project was initiated in Fiscal Year 2021-22 and is on-going.
Department: Public Works - Account No. 210.265.999.5800.PWFO-21 / 789 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
FIBER OPTIC COMMUNICATIONS SYSTEMS – CITYWIDE
Infrastructure Project
119 141
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 268,729 137,271 406,000
5804-Construction 117,990 3,331,174 1,452,102 4,901,266 5805-Construction Engineering 520,000 520,000
5802-Design & Environmental 347,843 259,973 607,816
5806-MSHCP 182,700 102,500 285,200
Total Expenditures 734,562 4,431,118 1,554,602 ----6,720,282 Source of Funds:
4245-DIF-Corporate Facilities 43,651 50,000 93,651
4246-DIF-Fire Protection Facilities 127,336 194,890 322,226 4002-Measure S 546,658 4,398,035 1,359,712 6,304,405
Total Funding 717,645 4,448,035 1,554,602 ----6,720,282 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will consist of adding a 2nd garage in the rear of the property to park the squad and additional vehicles, along with a gym and storage room.
Benefit: This improvement to the station will allow for the station crew to stay at the facility to workout on a daily basis. The addition of the garage will offer an outside storage with roof to house the squad to reduce the wear and tear on these vehicles.
Core Value: A Safe and Prepared Community
Project Status: This project will be in construction in Fiscal Year 2026-27.
Department: Fire - Account No. 210.265.999.5800.PW19-13 / 697 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
FIRE STATION 73 GYM/GARAGE
Infrastructure Project
120 142
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 298,621 105,129 403,750
5804-Construction 1,850 2,343,857 2,345,707
5805-Construction Engineering 4,759 339,586 344,345
5802-Design & Environmental 192,141 158,052 350,193
5809-Information Technology 20,020 64,980 85,000
5806-MSHCP 455 455
Total Expenditures 517,846 3,011,604 -----3,529,450
Source of Funds:
4245-DIF-Corporate Facilities 662,131 662,131
4246-DIF-Fire Protection Facilities 448,248 448,248
4350-Facilities Replacement Fund 800,000 800,000
4002-Measure S 709,861 909,210 1,619,071
Total Funding 709,861 2,819,589 -----3,529,450
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the design, construction and renovation of Fire Station #84, including upgrades to the training room. This fire station serves as the headquarter station for the City of Temecula Fire Department. This renovation will give a fresh look to the station as well as update the facility to be more energy efficient. The renovation will add a gym to the facility, upgrade electrical, upgrade the windows, and re-paint the exterior and interior of the station. The living quarters will also receive some renovations to the bathrooms, kitchen and day room.
Benefit: This improvement will create a better learning experience for our community members that attend classes for training.
Core Value: A Safe and Prepared Community
Project Status: This project is under construction.
Department: Fire - Account No. 210.265.999.5800.PW19-14 / 687 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
FIRE STATION 84 RENOVATION
Infrastructure Project
121 143
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 391,141 37,420 428,560
5804-Construction 970,717 1,380,112 2,350,829
5805-Construction Engineering 3,043 346,958 350,000
5802-Design & Environmental 369,093 126,812 495,905
5240-Utilities 5,000 5,000
Total Expenditures 1,733,993 1,896,302 -----3,630,295
Source of Funds:
4002-Measure S 509,989 620,306 1,130,295
4078-Reimbursement-Pechanga IGA 2,500,000 2,500,000
Total Funding 3,009,989 620,306 -----3,630,295
Future Operating & Maintenance Costs:
Total Operating Costs 63,289 65,188 67,144 69,159
Notes :
1. Operating & Maintenance costs reflect the ongoing irrigation and landscape maintenance required by CalTrans.
Project Description: The project includes the landscape beautification of the west side of the Interstate 15/State Route 79 South (Temecula Parkway) interchange with enhanced landscaping & hardscape inspired by the I-15 Branding & Visioning Plan.
Benefit: This project meets the City-wide long-term goals as identified in the Quality of Life Master Plan to include a Healthy and Livable City and Economic Prosperity.
Core Value: Healthy and Livable City
Project Status: This project has been constructed and is being maintained by the contractor until Winter 2026.
Department: Public Works - Account No. 210.265.999.5800.PW17-19 / 690 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
I-15/STATE ROUTE 79 SOUTH INTERCHANGE ENHANCED LANDSCAPING Infrastructure Project
122 144
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 50,000 50,000 50,000 150,000
5802-Design & Environmental 100,000 50,000 150,000 150,000 450,000 Total Expenditures --100,000 -100,000 200,000 200,000 600,000 Source of Funds:
4198-Public Art Fund 100,000 100,000
4452-Unspecified 100,000 200,000 200,000 500,000
Total Funding --100,000 -100,000 200,000 200,000 600,000 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the beautification of the Interstate 15 Corridor within the City of Temecula limits by implementing the I-15 Branding and Visioning Plan. The improvements include, but are not limited to, enhanced and themed landscaping, gateway monumentations, sculptures, interchanges focal art, and bridge treatments. The project will be implemented in phases and as funds become available. The initial appropriation is to develop a phasing plan in coordination with the California Department of Transportation (Caltrans).
Benefit: This project will beautify the I-15 Corridor within the City and promote the Temecula brand.
Core Value: Economic Prosperity
Project Status: Project not yet started.
Department: Public Works - Account No. 210.265.999.5800.PWBV-24 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
INTERSTATE 15 CORRIDOR BRANDING AND VISIONING IMPROVEMENTS Infrastructure Project
123 145
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5809-Information Technology 250,938 449,062 700,000
Total Expenditures 250,938 449,062 -----700,000
Source of Funds:
4247-DIF-Library Facilities 250,938 449,062 700,000
Total Funding 250,938 449,062 -----700,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: The Ronald H. Roberts Temecula Public Library was opened in 2006 to serve the residents of Temecula and surrounding areas. In 2021, the Library was designated as the City of Temecula's Alternate Emergency Operations Center (A-EOC). This project will enhance the library's current technology offerings to provide for a secure, reliable, state-of-the-art equipment for conducting emergency operations.
Benefit: This project will equip the library with the requisite technology to provide for an operational Alternate Emergency Operations Center.
Core Value: A Safe and Prepared Community
Project Status: Project is expected to be completed during Fiscal Year 2025-
26. Department: Information Technology - Account No. 210.265.999.5800.IT24- 02 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
LIBRARY ALTERNATE EMERGENCY OPERATIONS CENTER ENHANCEMENTS Infrastructure Project
124 146
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5809-Information Technology 71,937 168,063 240,000
Total Expenditures 71,937 168,063 -----240,000
Source of Funds:
4247-DIF-Library Facilities 71,937 168,063 240,000
Total Funding 71,937 168,063 -----240,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: The Ronald H. Roberts Temecula Public Library was opened in 2006 to serve the residents of Temecula and surrounding areas.
Since then, it has become the busiest Library in the Riverside County System and offers advanced technology services to its patrons. This project will enhance the library's technology offerings to ensure that the patrons have access to a secure, reliable, state-of-the-art facility for many years to come.
Benefit: This project will offer improvements to the patron experience and to the reliability of the library technology systems.
Core Value: Healthy and Livable City
Project Status: Project is expected to be complete during Fiscal Year 2026-27.
Department: Information Technology - Account No. 210.265.999.5800.IT24- 01 Level:
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
LIBRARY TECHNOLOGY ENHANCEMENTS
Infrastructure Project
125 147
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 5,000 5,000
5802-Design & Environmental 150,000 150,000
Total Expenditures - 155,000 -----155,000
Source of Funds:
4025-Grants 120,000 120,000
4002-Measure S 35,000 35,000
Total Funding - 155,000 -----155,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Grant source: Safe Streets and Roads for All (SS4A)
Project Description: This project is to update the City's Local Roadway Safety Plan (LRSP) to bring it in line with federal safety plan requirements. The LRSP creates a framework to systematically identify and analyze safety problems and recommend safety improvements.
Benefit: This project will provide a prioritized list of improvements and actions that can demonstrate a defined need and contribute to a proactive approach for addressing local safety needs.
Core Value: Transportation Mobility and Connectivity
Project Status: This project is currently in the consultant RFP review phase.
Department: Public Works - Account No. 210.265.999.5800.PW25-03 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
LOCAL ROADWAY SAFETY PLAN UPDATE
Infrastructure Project
126 148
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5802-Design & Environmental 30,000 30,000
Total Expenditures --30,000 ----30,000
Source of Funds:
4051-DIF-Open Space & Trails 30,000 30,000
Total Funding --30,000 ----30,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This off-street route would connect James Day Middle School and Long Canyon Creek Park on North General Kearny Road to the Promenade Temecula and an employment center to the west. The route includes crosswalks at the Promenade Way/Overland Drive intersection, as well as a crossing of Margarita Road at Georgetown Lane Benefit: This route provides a paved, low-stress alternative to riding a bicycle on multi-lane arterials such as Margarita Road, as well as provides improved crossings of major roadways. This GCA would satisfy the City’s Core Values of a Healthy and Livable City, Transportation Mobility and Connectivity, and a Sustainable City
Core Value: Transportation Mobility and Connectivity
Project Status: New proposed project
Department: Community Development - Account No.
210.265.999.5800.NEW PW26-07
Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
LONG CANYON CREEK PARK TO YNEZ TRAIL
Infrastructure Project
127 149
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 567,832 567,832
5804-Construction 9,577,616 67,258 9,644,874
5805-Construction Engineering 6,130 516 6,646
5802-Design & Environmental 1,270,347 51,335 1,321,682
5809-Information Technology 780,474 780,474
Total Expenditures 12,202,399 119,109 -----12,321,508
Source of Funds:
4481-Capital Financing 6,405,000 6,405,000
4244-DIF-Park & Rec Improvements 600,000 600,000
4256-DIF-Police Facilities 111,256 25,744 137,000
4002-Measure S 5,083,592 95,916 5,179,508
Total Funding 12,199,848 121,660 -----12,321,508
Future Operating & Maintenance Costs:
Total Operating Costs 1,544,079 1,603,504 1,665,220 1,729,315 Notes :
1. Capital Financing reflects the Temecula Public Financing Authority's 2018 Lease Financing arrangement which provides $6.4M in funding, with a term of 15 years at an interest rate of 3.42%, repaid by the General Fund. (Loan Paid off in 2022)
2. Future Operating and Maintenance costs reflect the staffing, utilities and other service costs and are reflected in the Temecula Community Services District 5-Year Financial Forecast.
Project Description: This project consists of the construction of a new recreation center in Mike Naggar Community Park in place of the former YMCA building. The project includes the demolition of the existing building and pool, constructing a new building and pool was determined by a Community Needs Assessment and available budget. The Information Technology component includes camera system infrastructure, access control, Public Wi-Fi and other identified technology needs.
Benefit: This project will provide the City a new facility to meet the increasing demands of recreational programs.
Core Value: Healthy and Livable City
Project Status: Construction was completed in December of 2023.
Department: Public Works - Account No. 210.265.999.5800.PW17-21 / 692 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MARGARITA RECREATION CENTER
Infrastructure Project
128 150
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 297,013 297,013
5804-Construction 1,641,305 1,641,305
5805-Construction Engineering 181,344 181,344
5802-Design & Environmental 99,333 99,333
Total Expenditures 2,218,995 ------2,218,995
Source of Funds:
4140-CDBG 1,057,584 1,057,584
4350-Facilities Replacement Fund 279,694 279,694
4002-Measure S 952,411 (70,694)881,717
Total Funding 2,289,689 (70,694)-----2,218,995
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Adjusted budget variance includes Council approved Substantial Amendment to the 2022-23 CDBG Annual Action Plan for the Reallocation of CDBG Funds to the Mary Phillips Senior Center dated 11/15/2022 for total CDBG funding of $1,057,583.78. Additionally Measure S funds in the amount of $45,000 were reprogrammed in Fiscal Year 2024-25 from the Mary Phillips Senior Center Enhancement and Renovation to the Mary Phillips Senior Center Outdoor Recreation Area.
2. Negative variance in Measure S funding represents project completion final accounting activities.
Project Description: This project includes the enhancement and renovation of the Mary Phillips Senior Center. Exterior improvements include new roof, siding, soffit, fascia, trim, doors and windows. Interior improvements include lighting, acoustics, trim, flooring, bookcase, and finishes. The project includes improvements in accessibility throughout the building interior and site in accordance with latest ADA requirements.
Benefit: This project updates and enhances the appearance and improves safety and extends the life of the facility.
Core Value: Healthy and Livable City
Project Status: This project is complete.
Department: Public Works - Account No. 210.265.999.5800.PW20-13 / 782 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MARY PHILLIPS SENIOR CENTER ENHANCEMENT AND RENOVATION
Infrastructure Project
129 151
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 55,000 55,000
5804-Construction 77,898 679,003 756,900
5805-Construction Engineering 14,551 35,449 50,000
5802-Design & Environmental 29,900 85,100 115,000
Total Expenditures 122,349 854,552 -----976,900
Source of Funds:
4242-DIF-Street Improvements 40,000 40,000
4002-Measure S 231,900 680,000 911,900
4438-Reimbursements 25,000 25,000
Total Funding 271,900 705,000 -----976,900
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Reimbursements reflects contribution from the Temecula Valley Unified School District.
Project Description: This project includes the design and construction of raised concrete medians (with stamped concrete), neighborhood identification medians, pedestrian bulb-outs, striping improvements and other features to provide neighborhood traffic calming at various locations throughout the City.
Benefit: This project provides neighborhood traffic calming, enhances pedestrian, bicycle safety and the quality of life at various locations within the City.
Core Value: A Safe and Prepared Community
Project Status: The implementation of traffic calming improvements is ongoing.
Department: Public Works - Account No. 210.265.999.5800.PWTC-20 / 704 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MEDIANS & TRAFFIC CALMING IMPROVEMENTS - CITYWIDE
Infrastructure Project
130 152
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 370,326 28,302 398,628
5804-Construction 1,633,250 204,373 1,837,623
5802-Design & Environmental 270,178 40,222 310,400
5601-Furnishings & Equipment 129,387 613 130,000
5809-Information Technology 130,561 30,389 160,950
Total Expenditures 2,533,703 303,898 -----2,837,601
Source of Funds:
4245-DIF-Corporate Facilities 130,000 15,000 145,000
4001-General Fund 135,858 135,858
4002-Measure S 1,262,139 125,319 1,387,458
4438-Reimbursements 969,285 969,285
4145-TEAM 100,000 100,000 200,000
Total Funding 2,597,282 240,319 -----2,837,601
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project reflects the United States Army Corps of Engineers (USACE) and Riverside County Flood Control (RCFC) improvements to Murrieta Creek within City limits. This project also include the study, design, and construction of alternatives to reconfigure the existing Southside Parking Lot which has been impacted by the Riverside County Flood Control's acquisition of a portion of the parking lot. Lighting will be added to the trail on the east side of Murrieta Creek between First Street and Rancho California Road. The installation of a RCFC Storm Drain Catch Basin No. 100 on Pujol Street was added.
Benefit: This project helps prevent flooding of Old Town Temecula.
Core Value: A Safe and Prepared Community
Project Status: Construction for the Southside parking lot reconfiguration is complete (PWMC-22-01). Construction of the trail lighting is complete (PWMC-22-02).
Department: Public Works - Account No. 210.265.999.5800.PWMC-22 / 735 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MURRIETA CREEK IMPROVEMENTS
Infrastructure Project
131 153
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
Notes :
1. The City Council approved an Agreement for Sale and Purchase with Riverside County Flood Control and Water Conservation District (RCFC&WCD) for the purchase of a portion of the Southside Parking Lot on July 28, 2020. The Riverside County Board of Supervisors approved the agreement on March 23, 2021. The City received the total purchase price and the Cost to Cure in the amount of $771,136.16 for the reconfiguration of the Southside Parking Lot.
2. Reimbursements include $834,336 from Riverside County Flood Control and Water Conservation District (RCFC&WCD) and $28,249 from Frontier Communications for the purchase of an easement along Pennypickle’s Workshop and Murrieta Creek.
3. TEAM - Temecula Energy Efficiency Asset Fund.
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MURRIETA CREEK IMPROVEMENTS
Infrastructure Project
132 154
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 2,000,000 2,000,000
Total Expenditures - 2,000,000 -----2,000,000
Source of Funds:
4427-Assembly Bill 2766 450,000 450,000
4051-DIF-Open Space & Trails 300,000 300,000
4170-Measure A 1,100,000 1,100,000
4002-Measure S 150,000 150,000
Total Funding 300,000 1,700,000 -----2,000,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the design, environmental documents and permits, construction, improvements and extension of the Nicolas Road Multi-Use Trail from the Seraphina easterly boundary to Joseph Road. The improvements include approximately 1,800 LF of 10' wide Class I Bikeway.
Benefit: This project improves pedestrian and biking circulation on the northern side of the City
Core Value: Transportation Mobility and Connectivity
Project Status: The trail was constructed by a developer as part of the Nicolas Road Extension. Project Completed in February 2026 Department: Public Works - Account No. 210.265.999.5800.PWNT-25 / 785 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
NICOLAS ROAD MULTI-USE TRAIL EXTENSION
Infrastructure Project
133 155
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 128,762 1,238 130,000
5804-Construction 276,007 128,993 405,000
5802-Design & Environmental 202,480 667,521 870,000
Total Expenditures 607,248 797,752 -----1,405,000
Source of Funds:
4001-General Fund 1,000,000 1,000,000
4002-Measure S 405,000 405,000
Total Funding 1,000,000 405,000 -----1,405,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will include the design and eventual construction of parking improvements within the Old Town district. The Old Town Parking Management Plan outlines a number of parking strategies that can be implemented in Old Town over time. Additional parking improvements are anticipated to be constructed as part of the long-term parking management strategy.
Benefit: This project will satisfy the City's Core Values of a Healthy and Livable City and Economic Prosperity.
Core Value: Healthy and Livable City
Project Status: Main Street lots completed construction in January 2025.
Analysis of other potential parking improvements is ongoing.
Department: Public Works - Account No. 210.265.999.5800.PW17-15 / 694 Level: III
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
OLD TOWN PARKING IMPROVEMENTS
Infrastructure Project
134 156
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 46,162 253,838 300,000
5802-Design & Environmental 76,147 73,853 150,000
Total Expenditures 122,309 327,691 -----450,000
Source of Funds:
4110-Community Reinvestment
Program
122,309 327,691 450,000
Total Funding 122,309 327,691 -----450,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will provide for modular parklets located throughout Old Town Temecula, including traffic flow enhancements such as bollards or other traffic calming measures.
Benefit: A program that continues to enhance the livability of Old Town through small urban parklets.
Core Value: Healthy and Livable City
Project Status: This project is underway and has been soliciting community input on locations and styling of the parklets.
Department: Community Development - Account No.
210.265.999.5800.CD24-01
Level:
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
OLD TOWN TEMECULA PARKLETS PROGRAM
Infrastructure Project
135 157
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 83,448 6,552 100,000 190,000
5802-Design & Environmental 97,980 187,020 114,980 399,980 Total Expenditures 181,428 193,572 --- 214,980 -589,980 Source of Funds:
4002-Measure S 85,020 100,000 185,020
4102-RMRA 183,289 106,691 114,980 404,960
Total Funding 183,289 191,711 --- 214,980 -589,980
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Road and Repair Accountability Act (RMRA)
Project Description: This project consists of evaluating the conditions of all public roadways within the City (approximately 382 miles) evaluating and upgrading the City’s existing Pavement Management Program software, and providing capital improvement planning for a five-year Capital Improvement Program (CIP) budget.
Benefit: This project will provide the City with a roadmap for maintaining its roadways.
Core Value: A Safe and Prepared Community
Project Status: Data collection, compilation, and analysis took place January 2024. Study is performed every five years.
Department: Public Works - Account No. 210.265.999.5800.PW23-09 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PAVEMENT MANAGEMENT PROGRAM UPDATE
Infrastructure Project
136 158
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 19,728 5,312 25,040
5804-Construction 49,614 192,386 242,000
5805-Construction Engineering 580 7,380 7,960
Total Expenditures 69,922 205,078 -----275,000
Source of Funds:
4662-HSIP-Highway Safety
Improvement Program
225,000 225,000
4002-Measure S 23,329 26,671 50,000
Total Funding 23,329 251,671 -----275,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023
2. City match is $25,000 based on the HSIP application and grant. Additional appropriated local funds are for administration Project Description: This project will install American with Disabilities Act (ADA) compliant ramp upgrades at school crossing sites throughout the City.
Benefit: This project improves pedestrian safety and circulation throughout the City.
Core Value: Transportation Mobility and Connectivity
Project Status: Project complete.
Department: Public Works - Account No. 210.265.999.5800.PW23-11 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PEDESTRIAN RAMP UPGRADES - CITYWIDE
Infrastructure Project
137 159
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 436,370 11,630 448,000
5804-Construction 3,746,487 176,572 3,923,059
5805-Construction Engineering 470,778 24,492 495,270
5802-Design & Environmental 635,703 29,611 665,314
5700-Land Acquisition 14,580 6,920 21,500
5806-MSHCP 9,832 37,148 46,980
Total Expenditures 5,313,750 286,373 -----5,600,123
Source of Funds:
4051-DIF-Open Space & Trails 1,247,749 315,159 1,562,908 4002-Measure S 2,535,215 (319,984)2,215,231
4438-Reimbursements 319,984 319,984
4483-Senate Bill 1 1,398,424 103,576 1,502,000
Total Funding 5,181,387 418,736 -----5,600,123
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. California Transportation Commission (CTC) adopted the 2019 Active Transportation Program Augmentation on January 30 - 31, 2019.
2. Negative variance due to the reimbursement agreement between Rancho California Water District and the City of Temecula resulting in the reduction of Measure S funds in the amount of $319,984.
Project Description: This project includes the design, environmental, and construction of the under-crossing in Santa Gertrudis Creek at Margarita Road to connect to the pedestrian/bicycle trail. The under-crossing at Margarita Road will provide a continuous paved trail along the Santa Gertrudis Creek at this location.
Benefit: The project provides a safe pedestrian and bicycle trail connection for the community.
Core Value: Transportation Mobility and Connectivity
Project Status: Project was completed September 2025.
Department: Public Works - Account No. 210.265.999.5800.PW19-04 / 732 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SANTA GERTRUDIS CREEK PHASE II - MARGARITA UNDER-CROSSING Infrastructure Project
138 160
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 917,615 61,354 978,968
5804-Construction 460,703 6,726 467,430
5805-Construction Engineering 7,702 16,709 24,412
5802-Design & Environmental 291,244 10,522 301,766
Total Expenditures 1,677,265 95,311 -----1,772,575
Source of Funds:
4001-General Fund 375,000 375,000
4002-Measure S 1,282,471 115,104 1,397,575
Total Funding 1,657,471 115,104 -----1,772,575
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will include the construction of sidewalks at various locations throughout the City. A study to identify and prioritize areas with missing sidewalks was completed as part of the Trails and Bikeways Master Plan Update in Fiscal Year 2015-16. Based on the study and the available resources, sidewalks will be constructed in the selected areas considering economy of scale and proximity to private development.
Benefit: This project will provide walking surfaces for pedestrians.
Core Value: Transportation Mobility and Connectivity
Project Status: Funds remaining in this project will be used to add sidewalks to the west side of Ynez Road between Tiera Vista and Rancho Highland. That project, PW17-28 was completed in August of 2025.
Department: Public Works - Account No. 210.265.999.5800.PWSW-02 / 708 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SIDEWALKS - CITYWIDE
Infrastructure Project
139 161
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 396,073 17,826 413,899
5804-Construction 1,292,846 (53,330)1,239,516
5805-Construction Engineering 37,179 37,179
5802-Design & Environmental 133,976 4,015 137,991
5610-Equipment 42,500 (42,500)-
Total Expenditures 1,902,573 (73,989)-----1,828,585
Source of Funds:
4140-CDBG 849,426 849,426
4170-Measure A 140,000 140,000
4002-Measure S 1,138,877 (299,719)839,159
Total Funding 2,128,303 (299,719)-----1,828,585
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Negative adjusted budget in FY2025-26 driven by reprogramming of Measure S Funds to Sixth Street Improvements.
Project Description: This project involves adding and improving sidewalks in Old Town. The improvement areas include installing eight additional Old Town decorative streetlights on Moreno Road and Mercedes Street (PW22- 17). The City will continue evaluate locations to improve sidewalk in Old Town Temecula.
Benefit: Adding sidewalk and other improvements in Old Town promotes a Healthy and Livable City and Transportation Mobility and Connectivity.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction of the streetlights was completed in FY23-24.
Department: Public Works - Account No. 210.265.999.5800.PWOT-03 / 766 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SIDEWALKS - OLD TOWN IMPROVEMENTS
Infrastructure Project
140 162
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 136,300 88,700 225,000
5804-Construction 901,001 901,001
5805-Construction Engineering 60,000 60,000
5802-Design & Environmental 57,252 13,871 71,123
Total Expenditures 193,552 1,063,572 -----1,257,124
Source of Funds:
4002-Measure S 198,208 696,316 894,524
4437-Senate Bill 821 362,600 362,600
Total Funding 198,208 1,058,916 -----1,257,124
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Grant funding source reflects the 2023 Senate Bill 821, Bicycle and Pedestrian Facilities Program grant.
Project Description: This project will include the construction of sidewalks along Pauba Road from Elinda Road to Showalter Road.
Benefit: This project will provide walking surfaces for pedestrians.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction in progress, expected to be complete in Q2 2026.
Department: Public Works - Account No. 210.265.999.5800.PWSW-02-02 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SIDEWALKS-PAUBA ROAD
Infrastructure Project
141 163
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 140,974 42,567 183,541
5804-Construction 747,600 102,456 850,056
5805-Construction Engineering 10,375 7,633 18,008
5802-Design & Environmental 43,899 (3,178)40,721
Total Expenditures 942,848 149,478 -----1,092,326
Source of Funds:
4110-Community Reinvestment
Program
115,000 115,000
4002-Measure S 828,034 149,291 977,326
Total Funding 943,034 149,291 -----1,092,326
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project involves improving the south side of Sixth Street from Old Town Front Street to Mercedes Street. The improvements include adding sidewalks, rolled curb and gutter, paving, streetlights, and trees in accordance with the Old Town Specific Plan.
Benefit: Adding sidewalk and other improvements in Old Town promotes a Healthy and Livable City and Transportation Mobility and Connectivity.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction is complete.
Department: Public Works - Account No. 210.265.999.5800.PWOT-03- 01/PW22-16
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SIXTH STREET IMPROVEMENTS
Infrastructure Project
142 164
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5802-Design & Environmental 100,000 100,000
Total Expenditures - 100,000 -----100,000
Source of Funds:
4244-DIF-Park & Rec Improvements 100,000 100,000
Total Funding - 100,000 -----100,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project was identified in the City's Quality of Life Master Plan 2040 as a future project to better serve the senior community on the south side of Temecula.
Benefit: This project supports healthy and active lifestyles by providing opportunities for seniors to participate in activities and classes.
Core Value: Healthy and Livable City
Project Status: Conceptual design for this project will begin in Fiscal Year 2025-26.
Department: Public Works - Account No. 210.265.999.5800.PW24-05 Level: III
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SOUTH SIDE SENIOR CENTER FOR ACTIVE ADULTS
Infrastructure Project
143 165
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 43,779 59,221 199,675 199,675 502,350 5804-Construction 702,000 1,363,500 1,363,500 3,429,000 5805-Construction Engineering 75,000 133,950 133,950 342,900 5802-Design & Environmental 43,874 91,126 106,250 106,250 347,500 5806-MSHCP 38,100 66,675 66,675 171,450
Total Expenditures 87,652 965,448 - 1,870,050 - 1,870,050 -4,793,200 Source of Funds:
4002-Measure S 88,169 964,931 1,870,050 1,870,050 4,793,200 Total Funding 88,169 964,931 - 1,870,050 - 1,870,050 -4,793,200 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will line all City-owned metal storm drain pipe (e.g. corrugated metal pipe (CMP), spiral rib pipe (SRP), etc.), which may be susceptible to corrosion failure. The estimated total length of metal storm drain pipe in the City's inventory is approximately 3.6 miles (19,050 feet). The lining may include spray lining or slip lining to replace the metal with a smoother, more stable surface.
Benefit: This project maintains our current stormwater infrastructure.
Core Value: A Safe and Prepared Community
Project Status: Identification and design of project(s) will be based on findings of the Citywide Storm Drain Masterplan and investigations from field observations.
Department: Public Works - Account No. 210.265.999.5800.PWSD-23 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
STORM DRAIN PIPE LINING
Infrastructure Project
144 166
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 3,143 21,857 25,000
5804-Construction 102,703 381,797 484,500
5805-Construction Engineering 2,000 61,200 63,200
Total Expenditures 107,846 464,854 -----572,700
Source of Funds:
4662-HSIP-Highway Safety
Improvement Program
492,930 492,930
4002-Measure S 5,184 74,586 79,770
Total Funding 5,184 567,516 -----572,700
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023.
2. City match is $54,770 based on the HSIP application and grant. Additional appropriated local funds are for administration.
Project Description: This project will install pedestrian countdown signal heads and upgrade traffic signal controllers to improve safety and operations at signalized intersections Citywide including the Butterfield Stage Road, Margarita Road, Meadows Parkway, Nicolas Road, Pechanga Parkway, Ring Road, and Ynez Road corridors.
Benefit: This project improves pedestrian safety and traffic circulation throughout the City.
Core Value: Transportation Mobility and Connectivity
Project Status: Project complete.
Department: Public Works - Account No. 210.265.999.5800.PW23-12 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
TRAFFIC SIGNAL - PEDESTRIAN SIGNAL EQUIPMENT UPGRADE PHASE 2 - CITYWIDE Infrastructure Project
145 167
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 50 19,950 20,000
5804-Construction 2,661,397 2,661,397
5805-Construction Engineering 225,000 225,000
5802-Design & Environmental 280,725 68,778 349,503
Total Expenditures 280,775 2,975,125 -----3,255,900
Source of Funds:
4243-DIF-Traffic Signals 120,893 473,697 594,590
4662-HSIP-Highway Safety
Improvement Program
186,510 2,254,800 2,441,310
4002-Measure S 220,000 220,000
Total Funding 307,403 2,948,497 -----3,255,900
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Highway Safety Improvement Program - Cycle 11 awarded on March 9, 2023.
Project Description: This project will upgrade all traffic signals safety lights to LED and install communication system upgrades to 42 signals citywide.
Upgraded traffic signal improvements include LED street lights, signal wiring, vehicle heads, controller cabinets, fiber cable, ethernet switches, wireless radios, and related communication equipment to improve safety and operations with optimized traffic signal timing coordination. Signal timing coordination will be improved along the Butterfield Stage Road and Ynez Road corridors.
Benefit: This project will upgrade the City's traffic signal safety lights to LED, Sustainable and Resilient City, and upgrade traffic signal communication system equipment to improve mobility and connectivity.
Core Value: Transportation Mobility and Connectivity
Project Status: This project is anticpated to start construction in 2026.
Department: Public Works - Account No. 210.265.999.5800.PW23-13 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
TRAFFIC SIGNAL - SAFETY LIGHTS AND SIGNAL COMMUNICATIONS UPGRADE- CITYWIDE Infrastructure Project
146 168
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 15,000 60,000 75,000
5804-Construction 1,350,000 1,350,000
5802-Design & Environmental 25,515 224,485 250,000
Total Expenditures 25,515 239,485 1,410,000 ----1,675,000 Source of Funds:
4256-DIF-Police Facilities 649,000 649,000
4662-HSIP-Highway Safety
Improvement Program
552,850 552,850
4002-Measure S 25,515 239,485 208,150 473,150
Total Funding 25,515 792,335 857,150 ----1,675,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Highway Safety Improvement Program - Cycle 12 awarded on February 21, 2025.
2. City match is $552,850 based on the HSIP application and grant. Additional appropriated local funds are for administration.
Project Description: This project will provide the design and installation of fiber optic communications including conduit, cable, pullboxes, and related communication equipment to traffic signal operations. Various signalized intersections will be improved along the Margarita Road, Meadows Parkway, Date Street, and Nicolas Road corridors.
Benefit: This project will upgrade the City's fiber optic communications and traffic signal system equipment throughout the City. This project builds out the City's traffic signal fiber communications network as defined in the City's Communications System Master Plan. This project will enhance the City's core value of a safe and prepared community, as well as transportation mobility and connectivity as it relates to traffic signal communication.
Core Value: A Safe and Prepared Community
Project Status: The project is currently in the design phase. Design is anticipated to be completed in 2027.
Department: Public Works - Account No. 210.265.999.5800.PW25-01 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
TRAFFIC SIGNAL FIBER OPTIC EXTENSION
Infrastructure Project
147 169
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 40,018 40,018
5804-Construction 126,022 126,022
5802-Design & Environmental 3,483 3,483
Total Expenditures 169,523 ------169,523
Source of Funds:
4002-Measure S 244,375 (74,852)169,523
Total Funding 244,375 (74,852)-----169,523
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Negative variance in Measure S funding represents project completion final accounting activities.
Project Description: This project includes the undergrounding of utilities at various locations throughout the City to extend the undergrounding done by the developers beyond the limits of their developments. The project will continuously look for additional locations to underground power poles with the goal of beautifying Temecula. The funding for this project covers the west side of Old Town Front Street between Fourth Street and Fifth Street (including about 25 feet of missing improvements).
Benefit: Undergrounding overhead lines will help make the City a Sustainable and Resilient City in the event of natural disasters and wild fires.
Core Value: A Sustainable and Resilient City
Project Status: Project is complete.
Department: Public Works - Account No. 210.265.999.5800.PWUG-04 / 776 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
UTILITY UNDERGROUNDING - CITYWIDE
Infrastructure Project
148 170
ϭϰϵ 171
150 172
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 432 9,568 10,000
5804-Construction 374,934 146,156 521,090
5802-Design & Environmental 14,000 14,000
Total Expenditures 375,366 169,724 -----545,090
Source of Funds:
4244-DIF-Park & Rec Improvements 145,090 145,090
4002-Measure S 400,000 400,000
Total Funding 545,090 ------545,090
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: As exhibits and play experiences in the Children’s Museum become outdated, this project allows for the re-design and replacement of exhibit areas or refurbishment of existing exhibits. This process provides the museum visitors new and updated play experiences.
Benefit: This project enhances existing exhibit areas of the Children’s Museum.
Core Value: Healthy and Livable City
Project Status: A project list has been developed. Projects are completed on an on-going basis.
Department: TCSD - Account No. 210.265.999.5800.PW19-05 / 125 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CHILDREN'S MUSEUM ENHANCEMENT PROJECT
Parks/Recreation Project
151 173
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 277,779 26,163 303,942
5804-Construction 1,990,968 937 1,991,905
5805-Construction Engineering 23,201 23,201
5802-Design & Environmental 252,525 5,574 258,099
Total Expenditures 2,544,472 32,675 -----2,577,147
Source of Funds:
4002-Measure S 2,545,258 31,889 2,577,147
Total Funding 2,545,258 31,889 -----2,577,147
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project provides for the conversion of the CRC's kiddie pool into a splash pad, and the addition of shade structures throughout the pool area.
Benefit: This project will provide City residents an additional splash pad for enhanced recreational opportunities.
Core Value: Healthy and Livable City
Project Status: Project Completed 11/15/2024
Department: Public Works - Account No. 210.265.999.5800.PW21-07 / 205 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
COMMUNITY RECREATION CENTER SPLASH PAD & SHADE STRUCTURES Parks/Recreation Project
152 174
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 400,000 400,000
Total Expenditures ---400,000 400,000
Source of Funds:
4350-Facilities Replacement Fund 400,000 400,000
Total Funding ---400,000 400,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: Restoration to the CRC pool cantilever Benefit: Upgrade aging facility components
Core Value: Healthy and Livable City
Project Status: New project proposed for future years
Department: Public Works - Account No. 210.265.999.5800.NEW PW26-05 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
CRC POOL CANTILEVER RESTORATION
Parks/Recreation Project
153 175
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 342,293 342,293
5804-Construction 685,062 685,063
5805-Construction Engineering 13,799 13,799
5802-Design & Environmental 82,538 82,537
5809-Information Technology 53,674 53,674
Total Expenditures 1,177,366 ------1,177,366
Source of Funds:
4245-DIF-Corporate Facilities 100,000 100,000
4025-Grants 447,126 447,126
4002-Measure S 630,874 (634)630,240
Total Funding 1,178,000 (634)-----1,177,366
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Proposition 68 Grant from the California Department of Parks and Recreation ($247,126).
2. American Rescue Plan Act (ARPA), signed into law March 11, 2021, grant through the County of Riverside ($200,000).
3. Negative variance in Measure S funding represents project completion final accounting activities.
Project Description: This project is to design and construct a dog park at Mike Naggar Community Park. The dog park will include small and large dog pens, seating, drinking fountains, shade, concrete hardscape, and landscaping in addition to ADA access.
Benefit: This project protects the City’s vast investment in parks and open space facilities. In addition, this project satisfies the City’s Core Values of a Healthy and Livable City and Responsive City Government.
Core Value: Healthy and Livable City
Project Status: Project completed July 2024.
Department: Public Works - Account No. 210.265.999.5800.PW21-14 / 207 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
DOG PARK RENOVATION
Parks/Recreation Project
154 176
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 315,000 315,000
Total Expenditures - 315,000 -----315,000
Source of Funds:
4110-Community Reinvestment
Program
300,000 300,000
4002-Measure S 15,000 15,000
Total Funding - 315,000 -----315,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: Rehabilitation of existing splash pad components to restore operation, including replacement of failed subsurface fiber glass water tank with new reinforced concrete water tank which would enhance overall durability of the water storage system
Benefit: The Eagle Soar Splash Pad has been unusable since the Spring of 2025 due to failure of the existing underground fiberglass water storage tank.
The project will replace this tank with a reinforced concrete tank which would restore operation to the facility.
Core Value: Healthy and Livable City
Project Status: New project. Project will begin in Spring 2026 Department: Public Works - Account No. 210.265.999.5800.PW26-01 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
EAGLE SOAR SPLASH PAD REHABILITATION
Parks/Recreation Project
155 177
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 18,594 30,347 48,941
5804-Construction 51,424 3,822,532 3,873,956
5805-Construction Engineering 23,584 175,000 198,584
5802-Design & Environmental 347,000 347,000
5806-MSHCP 193,698 193,698
Total Expenditures 18,594 452,355 --- 4,191,230 -4,662,179 Source of Funds:
4002-Measure S 18,594 452,355 470,949
4452-Unspecified 4,191,230 4,191,230
Total Funding 18,594 452,355 --- 4,191,230 -4,662,179
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project repairs and reinforces the earth and berms between specific park sites and flood control channels, and fortifies the banks to prevent further erosion into the park sites. A report for Friendship Park (formerly Pala Park), Mike Naggar Community Park (formerly Margarita Community Park), and Long Canyon Creek Park was developed. This study will serve as a basis for project design, environmental clearance, and construction at each location.
Benefit: This project prevents further erosion into park site.
Core Value: Healthy and Livable City
Project Status: Start preliminary design in FY26-27.
Department: Public Works - Account No. 210.265.999.5800.PW23-20 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
EMPIRE CREEK IMPROVEMENTS
Parks/Recreation Project
156 178
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 132,556 11,638 144,194
5802-Design & Environmental 95,305 (7,369)87,936
Total Expenditures 227,861 4,269 -----232,130
Source of Funds:
4666-Developer Contribution 1,415,000 (1,355,000)60,000 4240-DIF-Quimby 186,910 (14,780)172,130
Total Funding 1,601,910 (1,369,780)-----232,130
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Developer contribution reflect extraordinary benefit payment from the Heirloom Farms development.
2. Project funding has been reprioritized. Negative variances represent the reduction of funding sources due to project cancellation.
Project Description: This project provides for the design and construction of the renovation, expansion, and Americans with Disabilities Act (ADA) improvements of existing building at the Harveston Community Park. The work includes the expansion of the classrooms, a dedicated check-in counter, a storage room, and bringing the facility up to current ADA accessibility compliance standards.
Benefit: This project provides additional amenities for City residents, maintenance of existing building, and brings facility to accessibility compliance.
Core Value: Healthy and Livable City
Project Status: Project funding has been reprioritized, and this project will not move forward at this time.
Department: Public Works - Account No. 210.265.999.5800.PW22-11 / 225 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
HARVESTON COMMUNITY PARK BUILDING RENOVATIONS AND EXPANSION Parks/Recreation Project
157 179
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 10,606 10,606
5804-Construction 340,381 45,014 385,394
5802-Design & Environmental 3,000 1,000 4,000
Total Expenditures 353,986 46,014 -----400,000
Source of Funds:
4240-DIF-Quimby 353,986 46,014 400,000
Total Funding 353,986 46,014 -----400,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: Design and implement alternative recreational amenities such as skateboard park features, mountain/BMX bike skill trainers, rock climbing, parkour, slacklining, exercise equipment, and others within opportunistic locations such as City-owned remnants or spaces within existing parks or public facilities.
Benefit: This project will provide City residents with additional popular amenities for enhanced recreational opportunities.
Core Value: Healthy and Livable City
Project Status: Project will be completed on an on-going basis as funding becomes available.
Department: Public Works - Account No. 210.265.999.5800.PW23-05 / 226 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
INFILL RECREATIONAL AMENITIES
Parks/Recreation Project
158 180
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 46,475 130,525 177,000
5804-Construction 103,960 716,040 820,000
5805-Construction Engineering 60,000 60,000
5802-Design & Environmental 135,860 85,070 220,930
5809-Information Technology 220,000 220,000
Total Expenditures 286,294 1,211,636 -----1,497,930
Source of Funds:
4002-Measure S 289,025 1,208,905 1,497,930
Total Funding 289,025 1,208,905 -----1,497,930
Future Operating & Maintenance Costs:
Total Operating Costs 31,085 31,706 32,340 32,987
Notes :
1. Operating & Maintenance costs reflect the increased janitorial costs associated with the addition of new park restroom facilities.
Project Description: This project provides for the design and construction of a new restroom facility at Long Canyon Creek Park that meet current ADA accessibility compliance standards.
Benefit: This project provides restrooms for park patrons that are accessibility compliant.
Core Value: Healthy and Livable City
Project Status: The Project is under construction. The Project is anticipated to be completed in 2026.
Department: Public Works - Account No. 210.265.999.5800.PWPE-07-03/ PW23-18
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
LONG CANYON CREEK PARK RESTROOMS
Parks/Recreation Project
159 181
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 200,000 200,000
Total Expenditures - 200,000 -----200,000
Source of Funds:
4002-Measure S 200,000 200,000
Total Funding - 200,000 -----200,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: The existing courts at the Mike Naggar Community Park are currently configured with a mix of tennis and pickleball courts. The project will perform rehabilitation of the existing play surface and reconfigure all courts for pickleball.
Benefit: The project will complete needed play surface rehabilitation at the courts and reconfigure all courts to pickleball to fufill community demand for more pickleball courts.
Core Value: Healthy and Livable City
Project Status: New Project. Project will begin in Fall 2026 Department: Public Works - Account No. 210.265.999.5800.PWSR-15-01 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
MIKE NAGGAR PARK PICKLEBALL COURT CONVERSION
Parks/Recreation Project
160 182
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 330,911 41,089 372,000
5804-Construction 244,480 8,320 252,800
5805-Construction Engineering 30,000 30,000
5802-Design & Environmental 20,477 24,523 45,000
5809-Information Technology 30,000 30,000
Total Expenditures 595,868 133,932 -----729,800
Source of Funds:
4002-Measure S 608,281 121,519 729,800
Total Funding 608,281 121,519 -----729,800
Future Operating & Maintenance Costs:
Total Operating Costs 28,717 29,292 29,878 30,476
Notes :
1. Operating & Maintenance costs reflect the increased janitorial costs associated with the addition of new park restroom facilities.
2. PWPE-07 is the "Park Restroom Renovations, Expansion and Americans with Disabilities Act (ADA) Improvements" original/master project. The necessary funds to complete PW17-06 were kept here and the remainder of the funds were split between new projects PWPE-07-02 (PW23-06) and PWPE-07-03 (PW23-18). PW17-06 is complete and the Notice of Completion has been filed.
Project Description: This project provides for the design and construction of the renovation, expansion and Americans with Disabilities Act (ADA) improvements of existing restroom facilities. The restroom expansion includes renovating concession and restroom facilities at the North/South Baseball fields at the Ronald Reagan Sports Park to meet current ADA accessibility compliance standards.
Benefit: This project provides additional restrooms for park patrons and brings facility to accessibility compliance.
Core Value: Healthy and Livable City
Project Status: Project is ongoing
Department: Public Works - Account No. 210.265.999.5800.PWPE-07 / 155 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PARK RESTROOMS RENOVATIONS, EXPANSION AND AMERICANS WITH DISABILITIES ACT (ADA)
IMPROVEMENTS
Parks/Recreation Project
161 183
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 21,400 50,000 71,400
5804-Construction 3,772,856 217,918 3,990,774
5802-Design & Environmental 14,969 1,231 16,200
Total Expenditures 3,809,224 269,149 -----4,078,374
Source of Funds:
4240-DIF-Quimby 250,000 250,000
4001-General Fund 1,003,059 1,003,059
4002-Measure S 2,440,000 2,440,000
4438-Reimbursements 103,315 282,000 385,315
Total Funding 3,796,374 282,000 -----4,078,374
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project facilitates rehabilitation and improvement projects at various City parks. The rehabilitation and improvement projects could include, but are not limited to, parking lot repairs and resurfacing, landscape medians, raised and cracked concrete sidewalk replacement, fencing repair and replacement, landscaping and irrigation system efficiency upgrades, lighting system repairs and efficiency upgrades, on-site drainage improvements and other similar projects.
Benefit: This project protects the City’s vast investment in parks and open space facilities.
Core Value: Healthy and Livable City
Project Status: A priority list of rehabilitation projects has been developed.
Rehabilitations are completed on an on-going basis.
Department: Public Works - Account No. 210.265.999.5800.PWPI-14 / 130 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PARKS IMPROVEMENT PROGRAM
Parks/Recreation Project
162 184
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 527,326 527,326
5804-Construction 2,605,349 2,605,349
5805-Construction Engineering 19,525 19,525
5802-Design & Environmental 205,709 205,709
5809-Information Technology 145,816 145,816
Total Expenditures 3,503,725 ------3,503,725
Source of Funds:
4244-DIF-Park & Rec Improvements 1,450,000 1,450,000
4240-DIF-Quimby 261,000 261,000
4002-Measure S 1,794,566 (1,841)1,792,725
Total Funding 3,505,566 (1,841)-----3,503,725
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. Negative variance in Measure S funding represents project completion final accounting activities.
Project Description: Design and construct new dedicated pickleball courts at Ronald Reagan Sports Park.
Benefit: This project will provide City residents with an additional popular amenity for enhanced recreational opportunities.
Core Value: Healthy and Livable City
Project Status: Project development, design, and environmental through Fiscal Year 2023-24. Construction Completed Feb 2025, closeout activities only.
Department: Public Works - Account No. 210.265.999.5800.PW21-03 / 787 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PICKLEBALL COURTS
Parks/Recreation Project
163 185
Total Project
Cost Year Funding Source
1,040,000$ DIF-Park & Rec Improvements
Prior Year Actual Expenditures - Various Park Sites 440,000$ DIF-Quimby 3,905,773$ Measure S
Total 5,385,773$
Mike Naggar - Equipment and Surfacing Repairs 2025-26
Crowne Hill Park - Safety Surfacing Replacement
Pauba Ridge Park - Safety Surfacing Replacement
500,000$ DIF-Quimby
332,151$ Measure S
832,151$
Ronald Reagan Sports Park 500,000$ 2026-27 DIF-Quimby 939,725$ Measure S
Total 1,439,725$
Paseo Gallante Park -$ 2027-28
Total -$
Loma Linda Park 2028-29
Total -$
Loma Linda Park 2029-30
Total -$
Future Playgrounds Enhancements -$ 2030-31 Total -$
7,657,649
Prior Year Actual Expenditures 5,385,773$
Fiscal Year 2025-26 832,151$
Fiscal Year 2026-27 1,439,725$
Fiscal Year 2027-28 -$
Fiscal Year 2028-29 -$
Fiscal Year 2029-30 -$
Fiscal Year 2030-31 -$
TOTAL:7,657,649$
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PLAYGROUND EQUIPMENT ENHANCEMENT AND SAFETY SURFACING IMPROVEMENTS Parks and Recreation Project
Playground Location
Total
164 186
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 21,465 92,700 20,000 134,165
5804-Construction 5,356,605 739,354 1,419,725 7,515,684 5802-Design & Environmental 7,704 96 7,800
Total Expenditures 5,385,773 832,151 1,439,725 ----7,657,649 Source of Funds:
4244-DIF-Park & Rec Improvements 1,040,000 1,040,000
4240-DIF-Quimby 440,000 500,000 500,000 1,440,000
4002-Measure S 3,905,773 332,151 939,725 5,177,649
Total Funding 5,385,773 832,151 1,439,725 ----7,657,649 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the re-design, enhancement of playground equipment, and safety surfacing at existing City parks to comply with current state and federal regulations and enhance the quality of the parks. The projects include playground safety assessments, planning and evaluation, playground quality enhancements such as fencing, surfacing, accessibility and or new equipment.
Benefit: This project protects the City’s vast investment in parks and open space facilities.
Core Value: Healthy and Livable City
Project Status: The enhancement of playground equipment and safety surfacing will be performed at one to two sites per year, dependent on available funding. A priority list has been developed and enhancement will be completed on an ongoing basis.
Department: Public Works - Account No. 210.265.999.5800.PWPG-13 / 120 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
PLAYGROUND EQUIPMENT ENHANCEMENT & SAFETY SURFACING
Parks/Recreation Project
165 187
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 290,648 39,575 330,223
5804-Construction 564,945 2,749,055 3,314,000
5805-Construction Engineering 29,868 270,132 300,000
5802-Design & Environmental 50,712 25,471 76,183
5809-Information Technology 100,000 100,000
Total Expenditures 936,172 3,184,234 -----4,120,406
Source of Funds:
4666-Developer Contribution 500,000 500,000
4244-DIF-Park & Rec Improvements 680,815 334,159 1,014,974 4240-DIF-Quimby 520,432 520,432
4002-Measure S 259,104 1,825,896 2,085,000
Total Funding 1,439,919 2,680,487 -----4,120,406
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will include the renovation of the existing hockey rink to install new flooring material and arena style roof structure.
Benefit: This project will upgrade the existing aging facility and provide state- of-the-art recreation opportunity for the City's residents.
Core Value: Healthy and Livable City
Project Status: Project substantially completed. Ribbon cutting ceremony/substantial completion December 20, 2025.
Department: Public Works - Account No. 210.265.999.5800.PW22-06 / 223 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
RONALD REAGAN SPORTS PARK HOCKEY RINK
Parks/Recreation Project
166 188
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 160,130 197,526 357,656
5804-Construction 5,166,091 5,166,091
5805-Construction Engineering 280,000 280,000
5802-Design & Environmental 143,610 112,643 256,253
5809-Information Technology 50,000 50,000
Total Expenditures 303,740 5,806,260 -----6,110,000
Source of Funds:
4244-DIF-Park & Rec Improvements 314,624 314,624
4240-DIF-Quimby 1,016,240 1,016,240
4002-Measure S 307,899 4,471,237 4,779,136
Total Funding 307,899 5,802,101 -----6,110,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will remove and replace the existing skate park and install state-of-the-art street skate plaza elements.
Benefit: This project will upgrade the existing aging facility and provide state- of-the-art recreation opportunity for the City's residents. In addition, this project satisfies the City’s Core Values of a Healthy and Livable City, A Safe and Prepared Community, and Accountable and Responsive City Government.
Core Value: Healthy and Livable City
Project Status: Design was initiated in FY2022-23. This project is in the construction phase and expected to be completed in FY26/27.
Department: Public Works - Account No. 210.265.999.5800.PW22-07 / 222 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
RONALD REAGAN SPORTS PARK SKATE PARK
Parks/Recreation Project
167 189
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 100,000 100,000
Total Expenditures --100,000 ----100,000
Source of Funds:
4002-Measure S 100,000 100,000
Total Funding --100,000 ----100,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: The project includes the design and construction of multi-use trails in the area between Ronald Reagan Sports Park to the north, Pauba Road to the south, Margarita Road to the east, and border of the park to the west.
Benefit: This project supports healthy and active lifestyles by promoting recreation programs, parks, trails, and facilities.
Core Value: Healthy and Livable City
Project Status: New proposed project
Department: Public Works - Account No. 210.265.999.5800.NEW PW26-06 Level: II
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
RONALD REAGAN SPORTS PARK TRAIL
Parks/Recreation Project
168 190
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 60,000 60,000
5802-Design & Environmental 300,000 300,000
Total Expenditures - 360,000 -----360,000
Source of Funds:
4110-Community Reinvestment
Program
360,000 360,000
Total Funding - 360,000 -----360,000
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: Study feasibility and design options for a potential Community Garden on existing City owned parcel located at the southwest corner of Santiago Rd and Ynez Rd.
Benefit: A Community Garden is identified in the Quality of Life Master plan.
A Community Garden at this site would provide a local amenity to this currently unused City owned parcel.
Core Value: Healthy and Livable City
Project Status: Project On Hold
Department: Public Works - Account No. 210.265.999.5800.PW26-02 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SANTIAGO SITE - COMMUNITY GARDEN
Parks/Recreation Project
169 191
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 363,830 206,427 100,000 100,000 770,257 Total Expenditures 363,830 206,427 - 100,000 100,000 --770,257 Source of Funds:
4002-Measure S 363,830 206,427 100,000 100,000 770,257
Total Funding 363,830 206,427 - 100,000 100,000 --770,257 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes repairs and resurfacing of sport court surfacing at various parks and facilities. Surfacing includes tennis courts, basketball courts, and hockey rinks at various parks.
Benefit: This project protects the City’s vast investment in parks and open space facilities. In addition, this project satisfies the City’s Core Values of a Healthy and Livable City, A Safe and Prepared Community, and Accountable and Responsive City Government.
Core Value: Healthy and Livable City
Project Status: Projects will be completed on an on-going basis.
Department: Public Works - Account No. 210.265.999.5800.PWSR-15 / 141 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SPORTS COURT RESURFACING
Parks/Recreation Project
170 192
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5804-Construction 2,465,917 264,083 2,730,000
Total Expenditures 2,465,917 264,083 -----2,730,000
Source of Funds:
4002-Measure S 2,165,917 264,083 2,430,000
4145-TEAM 300,000 300,000
Total Funding 2,465,917 264,083 -----2,730,000
Future Operating & Maintenance Costs:
Total Operating Costs
Notes :
1. TEAM - Temecula Energy Efficiency Asset Management Fund
2. 25 year warranty on service & parts
Project Description: This project provides for the replacement of the aging sports field lighting components with new LED technology at various sports parks.
Benefit: This project enhances the safety of sport field users, reduces unnecessary light pollution and increases energy efficiency at City parks.
Core Value: Healthy and Livable City
Project Status: Project will be completed on an on-going basis as funding becomes available.
Department: Public Works - Account No. 210.265.999.5800.PWSL-12 / 113 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
SPORTS FIELD LIGHTING - LIGHT EMITTING DIODE (LED) CONVERSION Parks/Recreation Project
171 193
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 84,646 272,354 200,000 557,000
5804-Construction 1,220,000 10,725,545 11,945,545
5805-Construction Engineering 225,000 225,000
5802-Design & Environmental 55,333 744,667 800,000
5809-Information Technology 800,000 800,000
5806-MSHCP 597,277 597,277
Total Expenditures 139,979 2,237,021 --12,547,822 --14,924,822 Source of Funds:
4244-DIF-Park & Rec Improvements 2,000,000 2,000,000
4240-DIF-Quimby 129,673 870,327 1,000,000 2,000,000
4002-Measure S 10,596 1,366,404 1,377,000
4452-Unspecified 9,547,822 9,547,822
Total Funding 140,269 2,236,731 --12,547,822 --14,924,822 Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project will provide for the design and construction of a regional sports park facility in the Riverside County Flood Control District detention basin near Jefferson Avenue and Sanborn Avenue. It will include soccer fields, walking paths, and parking.
Benefit: This project will provide a much needed recreational facility for the residents of the City and the region. This project aligns with the City’s core value of a healthy and livable City, as well as investment in parks and open space facilities.
Core Value: Healthy and Livable City
Project Status: Continue coordination with Riverside Flood Control & Water Conservation District and Eastern Municipal Water District to develop this project in conjunction with their proposed uses in this space.
Department: Public Works - Account No. 210.265.999.5800.PW22-12 / 221 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
UPTOWN TEMECULA SPORTS PARK
Parks/Recreation Project
172 194
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 92,610 84,390 177,000
5804-Construction 106,990 728,010 835,000
5805-Construction Engineering 60,000 60,000
5802-Design & Environmental 122,712 98,218 220,930
5809-Information Technology 100,000 100,000
Total Expenditures 322,311 1,070,619 -----1,392,930
Source of Funds:
4002-Measure S 325,063 1,067,867 1,392,930
Total Funding 325,063 1,067,867 -----1,392,930
Future Operating & Maintenance Costs:
Total Operating Costs 31,085 31,706 32,340 32,987
Notes :
1. Operating & Maintenance costs reflect the increased janitorial costs associated with the addition of new park restroom facilities.
Project Description: This project provides for the design and construction of the renovation, expansion and Americans with Disabilities Act (ADA) improvements of existing restroom facilities. The restroom expansion includes the addition of new restroom facilities at Vail Ranch Park that meet current ADA accessibility compliance standards.
Benefit: This project provides restrooms for park patrons that are accessibility compliant.
Core Value: Healthy and Livable City
Project Status: Project is in construction
Department: Public Works - Account No. 210.265.999.5800.PWPE-07-02/ PW23-06
Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
VAIL RANCH PARK RESTROOMS
Parks/Recreation Project
173 195
174 196
ϭϳϱ 197
176 198
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 2,767,560 288 2,767,848
5804-Construction 20,089,783 1,481,365 21,571,148
5805-Construction Engineering 1,231,619 1,231,619
5802-Design & Environmental 820,789 820,789
5700-Land Acquisition 15,015,423 15,015,423
5240-Utilities 203 203
Total Expenditures 39,925,377 1,481,653 -----41,407,029 Source of Funds:
4277-CFD 03-02 (Roripaugh Ranch) 38,401,739 635,200 39,036,939 4438-Reimbursements 932,090 932,090
4413-TUMF 1,438,000 1,438,000
Total Funding 40,771,829 635,200 -----41,407,029
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the complete design and construction of four lanes on Butterfield Stage Road (from Rancho California Road to Murrieta Hot Springs Road), four lanes on Murrieta Hot Springs Road (from Butterfield Stage Road to the City limits), and two lanes on Calle Chapos (from Butterfield Stage Road to Walcott Road), totaling approximately 3.2 miles of road.
Benefit: This project improves traffic circulation by providing a crucial north and south arterial road on the eastern side of the City.
Core Value: Transportation Mobility and Connectivity
Project Status: Construction of the roads has been completed. Project close- out is in progress.
Department: Public Works - Account No. 210.265.999.5800.PW15-11 / 723 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
BUTTERFIELD STAGE ROAD EXTENSION
Projects Funded by Community Facilities District Bonds Project 177 199
Project Cost:
Prior Years
Actuals
2025-26
Adjusted
2026-27
Proposed
Budget
2027-28
Projected
2028-29
Projected
2029-30
Projected
2030-31
Projected
Total Project
Cost
5801-Administration 9,109 595,144 604,253
5804-Construction 16,292,907 16,292,907
5805-Construction Engineering 2,137,500 2,137,500
5802-Design & Environmental 2,675 994,825 997,500
5700-Land Acquisition 1,440,000 1,440,000
5806-MSHCP 712,500 712,500
Total Expenditures 11,784 22,172,876 -----22,184,660
Source of Funds:
4277-CFD 03-02 (Roripaugh Ranch) 11,784 7,695,933 7,707,717 4278-CFD 16-01 (Roripaugh Ranch-
Phase II)
6,722,850 6,722,850
4666-Developer Contribution 7,754,093 7,754,093
Total Funding 11,784 22,172,876 -----22,184,660
Future Operating & Maintenance Costs:
Total Operating Costs
Project Description: This project includes the extension of Nicolas Road from the Roripaugh Ranch Phase II westerly boundary to Calle Girasol/Liefer Road.
The improvements include approximately 4,000 LF road improvements and culvert crossing at Santa Gertrudis Creek. Also included is reimbursement for improvements at the intersection of Nicolas Road and Winchester Road, competed in 2021.
Benefit: This project improves traffic circulation on the eastern side of the City.
Core Value: Transportation Mobility and Connectivity
Project Status: Woodside, the developer of Sommer's Bend development is taking the lead in completing the improvements. Construction started in FY2023-24 and is scheduled for completion in FY2026-27.
Department: Public Works - Account No. 210.265.999.5800.PW20-14 / 604 Level: I
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
NICOLAS ROAD EXTENSION & IMPROVEMENTS
Projects Funded by Community Facilities District Bonds Project 178 200
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
City Manager's Office
Community Development
Community Development
Community Development
Community Development
Public Works
Public Works
Public/Private Development
Public/Private Development
AcquisLtion of Fire Station 12 in Old Town*
Complete Temecula Loop Trail*
Climate Action Plan*
History Museum Renovation
Integrated Watershed Management Plan*
Bike Lane and Trail Program - RRSP Trails
I-15 Gateway Monument*
Fire Training Facility with Tower*
Wildlife Crossing over I-15*
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 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.
FUTURE YEARS PROJECTS
City of Temecula
Fiscal Years 2027-31
Capital Improvement Program
179 201
180 202
AppendixB–SupplementalInformation
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The City of Temecula is a General Law City located in southwestern California, United States, with a population of . 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.
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181 203
Project PW Number Title Final Costs Fiscal Year
770 PW16-04 CITYWIDE CONCRETE REPAIRS $312,631 2017-18
757 PW13-07 FIRE STATION 73 LIVING QUARTERS UPGRADE $1,816,068 2017-18 119 PW15-08 PATRICIA BIRDSALL SYNTHETIC TURF REPLACEMENT $1,844,679 2017-18 999 TENANT IMPROVEMENTS $8,500 2017-18
715 PW12-19 CITYWIDE STORM DRAIN IMPROVEMENT $777,069 2018-19 763 DEVELOPER REIMBURSEMENTS $1,591,872 2018-19
765 EMERGENCY OPERATIONS CENTER (EOC) IMPROVEMENTS $117,488 2018-19 115 PW17-07 FALLEN HEROES MEMORIAL $275,623 2018-19
695 OLD TOWN STREET LIGHT CONVERSION LED $33,754 2018-19 773 PW17-09 RONALD H ROBERTS TEMECULA PUBLIC LIBRARY $248,074 2018-19 122 PW17-23 TEEN VILLAGE $37,409 2018-19
660 PW06-04 WESTERN BYPASS BRIDGE AT MURRIETA CREEK $964,462 2018-19 713 PW16-03 AMERICANS WITH DISABILITIES ACT $347,157 2019-20 753 FIRE STATION RORIPAUGH PHASE II $69,030 2019-20
691 PW17-20 MAIN STREET PROPERTY IMPROVEMENTS $135,355 2019-20 555 PW17-05 SIDEWALK SIXTH STREET IMPROVEMENTS $327,631 2019-20 775 PW17-22 SIDEWALKS - YNEZ ROAD $107,874 2019-20
523 PW18-08 TRAFFIC CAMERAS COMMUNICATION EQUIPMENT $814,864 2019-20 116 PW18-02 COMMUNITY RECREATION CENTER (CRC) POOL SITE ENHANCEMENT $1,942,214 2020-21 117 COMMUNITY SERVICES MASTER PLAN $276,200 2020-21
136 HARVESTON LAKE INFRASTRUCTURE IMPROVEMENTS $78,009 2020-21 146 PW17-09 RONALD H. ROBERTS TEMECULA PUBLIC LIBRARY ENHANCEMENT $164,217 2020-21 132 PW12-20 SAM HICKS MONUMENT PARK PLAYGROUND $484,317 2020-21 650 PW10-13 PAVEMENT REHABILITATION PROGRAM - WINCHESTER RD $1,409,205 2021-22 989 TENANT IMPROVEMENTS - VTV $237,837 2021-22
781 PW20-09 BIKE LANE AND TRAIL PROGRAM - MINI PUMP TRACK $87,706 2022-23 718 PW18-04 BIKE LANE AND TRAIL PROGRAM - PUMP TRACK $545,839 2022-23 526 PW19-21 CITYWIDE BUFFERED BIKE LANE STRIPING $96,473 2022-23 145 PW20-07 EAGLE SOAR SPLASH PAD CONTROL SYSTEM RENOVATION $192,260 2022-23 522 PW17-08 EMERGENCY VEHICLE PRE-EMPTION UPGRADE PROGRAM - CITYWIDE $246,674 2022-23 719 PW07-04 I-15 / FRENCH VALLEY PARKWAY IMPROVEMENTS - PHASE I $28,575,323 2022-23 603 PW20-01 OVERHEAD STREET NAME SIGN REPLACEMENT PROGRAM - CITYWIDE $322,416 2022-23 530 PW15-14 PECHANGA PARKWAY WIDENING $4,740,868 2022-23 689 PW17-29 RECYCLED WATER CONVERSION PROJECT $667,620 2022-23 613 PW18-06 ROUNDABOUT IMPROVEMENTS ON YNEZ ROAD $777,332 2022-23 220 PW20-12 SAM HICKS MONUMENT PARK PERIMETER FENCING $251,311 2022-23 696 PW17-16 SIDEWALKS - OLD TOWN BOARDWALK ENHANCEMENT $1,124,860 2022-23 747 PW06-09 TEMECULA PARK & RIDE $4,359,423 2022-23
153 PW13-09 LIBRARY PARKING - PHASE II $3,261,430 2023-24 114 PW18-03 RONALD REAGAN SPORTS PARK RESTROOM EXPANSION $1,476,489 2023-24 187 PW05-13 RONALD REAGAN SPORTS PARK CHANNEL SILT REMOVAL $672,219 2023-24 721 PW19-18 SIDEWALKS- DLR DRIVE $464,866 2023-24
127 PWFC-10 FLOOD CONTROL CHANNEL RECONSTRUCTION & REPAIR $2,067,402 2023-24 550 PW18-05 FIBER OPTIC COMMUNICATION SYSTEM UPGRADE $1,529,460 2024-25 605 PW18-11 TRAFFIC SIGNAL - PARK & RIDE ACCESS IMPROVEMENTS $2,012,869 2024-25 771 PW21-08 MARY PHILLIPS SENIOR CENTER EMERGENCY GENERATOR $221,207 2024-25 796 PW22-08 MARY PHILLIPS SENIOR CENTER OUTDOOR RECREATIONAL AREA $904,451 2024-25 518 PW19-10 PEDESTRIAN SIGNAL EQUIPMENT UPGRADE - CITYWIDE $839,879 2024-25 739 PW08-04 SANTA GERTRUDIS CREEK PEDESTRIAN/BICYCLE TRAIL EXTENSION $7,191,535 2024-25 143 PWTP-16 TEMECULA ELEMENTARY SCHOOL (TES) POOL RENOVATION $62,504 2024-25 788 PW21-15 TRAFFIC SIGNAL - PROMENADE MALL RING ROAD $474,186 2024-25 224 PW22-14 RONALD REAGAN SPORTS PARK PUMP TRACK SHADE STRUCTURE $119,603 2024-25
COMPLETED CIP PROJECTS
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
182 204
Project PW Number Title Final Costs Fiscal Year
COMPLETED CIP PROJECTS
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
516 PW11-01 PECHANGA PARKWAY ENVIRONMENTAL MITIGATION $865,044 2024-25 206 PW21-04 RCWD RECYCLED WATER ACCELERATED RETROFIT PROGRAM $137,787 2024-25 204 PW20-15 URBAN FOREST MANAGEMENT PLAN $351,264 2024-25 610 PW19-09 TRAFFIC SIGNAL - SYSTEM UPGRADE (PROTECTED/PERMISSIVE SIGNAL $686,738 2025-26 780 IT20-01 OLD TOWN SECURITY CAMERA & SOUND SYSTEM $1,118,986 2025-26 786 PW22-15 RAINBOW CANYON ROAD PAVEMENT REHABILITATION $2,254,271 2025-26 670 PWFB-18 FLASHING BEACONS & SPEED ADVISORY SIGNS $335,284 2025-26 688 PW17-18 CITYWIDE STREETLIGHT ACQUISITION & LIGHT EMITTING DIODE (LED) $7,983,482 2025-26 $91,440,599
183 205
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
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 fiscal year.
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.
184 206
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
GLOSSARY OF TERMS
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.
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.
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
185 207
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
GLOSSARY OF TERMS
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.
CURRENT BUDGET -Represents the original adopted budget plus any approved changes and anticipated year-end adjustments.
DEBT SERVICE FUND - A fund 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 carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. 186 208
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
GLOSSARY OF TERMS
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.
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 - A fund 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.
187 209
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
GLOSSARY OF TERMS
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.
MEASURE C (SPECIAL TAX) - A voter approved special tax charged to property owners in order tofinance 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 Services District.
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 ofmaterials 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. 188 210
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
Capital Improvement Program
GLOSSARY OF TERMS
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.
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.
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.
189 211
City of Temecula
Fiscal Years 202ϳ-20ϯϭ
ĂƉŝƚĂůImprovement Program
GLOSSARY OF TERMS
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.
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. 190 212
City of Temecula
Fiscal Year 202ϳ-20ϯϭ
ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ
Summary of Affordable Housing Investment
SUMMARY OF AFFORDABLE HOUSING INVESTMENT
The City of Temecula, in conjunction with the former Temecula Redevelopment Agency (RDA), has invested $57 million in a variety of affordable housing options for Temecula residents, with 902 units completed since the City incorporated in 1989, and 95 of those units funded and completed by the County of Riverside.
Both the Cameron Building and the Palomar Heritage Building were the first of their kind in Old Town. The projects provided a great opportunity for the City to not only work towards meeting the community’s affordable housing needs but also to spur economic development within the Old Town District. The use of affordable housing funds to produce affordable housing and commercial space in a mixed-use building in Old Town allowed the City to leverage the City’s affordable housing funds for multiple purposes within the same development. This strategy of investment for the two future affordable housing / mixed use buildings served as a model for two other City-funded developments in Old Town.
The Madera Vista development was originally a private condo development that fell into foreclosure during the Great Recession. The project partially built and in disrepair. The City, along with Bridge Housing utilized affordable housing funds to purchase the property and completed construction.
Cameron Building
• 24 rental units for moderate-income households 120% of area median income (AMI) • RDA Investment $3 million
• Mixed-use building with commercial retail space on the bottom floor and 24 affordable housing units on floors 2-4
Portola Terrace
• 44 rental units for low and very low-income households 50% and 60% AMI • RDA investment $5.5 million
• Completed in 2013
Palomar Heritage
• 22 rental units for low and moderate-income households 60% and 110% AMI • RDA investment $3.3 million
• Mixed used building with commercial retail space on the bottom floor and 22 affordable housing units on floors 2-3
Madera Vista
• 110 affordable units in larger family-sized apartments • RDA investment $8.4 million
• 20 units set aside for seniors
191 213
City of Temecula
Fiscal Year 202ϳ-20ϯϭ
ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ
SUMMARY OF AFFORDABLE HOUSING INVESTMENT
In addition to providing funding to construct affordable housing units, the former Redevelopment Agency invested $524,356 to provide a First-Time Home Buyer Program available to moderate-income households (120% AMI) and assisted 20 First-Time Home Buyers to purchase homes in Temecula.
The City of Temecula and the former RDA have partnered with Habitat for Humanity since 2003 to construct five homes for low-income households to purchase. Total RDA investment of $582,000. An additional $700,000 investment with Habitat for Humanity is programmed for a future project to build six for-sale affordable/workforce housing units available to moderate and low-income homebuyers.
The City’s primary funding source for affordable housing was the Temecula Redevelopment Agency. In 2012, the State of California disbanded all redevelopment agencies within the State. The City of Temecula serves as the Successor Agency to the Redevelopment Agency (SARDA) and is responsible for the eventual wind down of the remaining RDA obligations, including the investment of the remaining $12.8 million in bond proceeds of the former RDA. Two affordable housing projects have been identified and the City Council has approved funding agreements with developers to provide an additional 137 affordable units.
In Fiscal Year 2021-22, the City set-aside $1 million in Community Reinvestment Program (CRP) Funds for a future affordable housing development in the Uptown Specific Plan area.
Vine Creek – Completed
• 60 rental units for low and very low-income households • 14 units set aside for special needs residents
• RDA investment of $6.7 million
Las Haciendas – Completed
• 77 rental units for extremely low to low-income households • RDA investment $10.2 million
• Project is the first residential development in Uptown Temecula Specific Plan area
192 214
City of Temecula
Fiscal Year 202ϳ-20ϯϭ
ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ
Fiscal Year 2026-27 Debt Obligations
FISCAL YEAR 2026-27 DEBT OBLIGATIONS
FISCAL YEAR 2026-27
FUND
ISSUE
DATE DESCRIPTION
BOND
RATING*
MATURITY
DATE
INTEREST
RATES PRINCIPAL INTEREST
TOTAL DEBT
OBLIGATION
OUTSTANDING
PRINCIPAL
INTEREST
TO
MATURITY
380 2017
Tax Allocation
Bonds, Series
2017A
AA 12/15/2038 2.00 -
5.00% 1,890,000 1,625,000 3,515,000 31,795,000 10,437,625 380 2017
Tax Allocation
Bonds, Series
2017B (Taxable)
AA 12/15/2039 2.00 -
4.00% 1,235,000 874,197 2,109,197 22,075,000 6,272,825
Successor Agency to the Redevelopment Agency (SARDA) Total $3,125,000 $2,499,197 $5,624,197 $53,870,000 $16,710,450 TOTAL $3,125,000 $2,499,197 $5,624,197 $53,870,000 $16,710,450 *The Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A and 2017B were rated by Standard & Poor's and assigned an underlying rating of "BBB+" and an insured rating of "AA," per the Official Statement dated December 19, 2017.
The City has programmed the use of Debt Financing for the following Capital Improvement Projects:
1) Las Haciendas Affordable Housing Project ($9,629,143) in bond proceeds from the Tax Allocation Bond, Series 2017B. 2) Vine Creek Affordable Housing Project ($1,408,281) in bond proceeds from the Tax Allocation Bond, Series 2017B.
The City’s General Fund has no other debt obligations. In December 2022, the City Council adopted the Debt/Liability Pay Down Strategy, outlining a goal for the City to become debt-free and fully funded in its Pension and Other Post-Employment Benefits (OPEB) programs. As of Fiscal Year 202ϱ-2ϲ, the City has fully paid off its facility loans for the Civic Center ($12.6 million) and the Margarita Recreation Center ($5.0 million), saving over $3 million in operating expenses per year. Additionally, the City’s OPEB unfunded liability has been paid off and $29.7 million has been paid towards the City’s $62 million unfunded pension liability, saving nearly $3 million in annual pension costs. 193 215
STATUS OF PAVEMENT MANAGEMENT PROGRAM
City of Temecula
Fiscal Years 2027-ϮϬ31
Capital Improvement Program
In 2024, the City of Temecula completed the Pavement Management Analysis Report, summarizing the findings of a Pavement Condition Index study performed by Infrastructure Management Services (IMS).
Pavement management is the process of planning, budgeting, funding, designing, constructing, monitoring, evaluating, maintaining, and rehabilitating the pavement network to provide maximum benefits with available funds. Streets that are repaired when they are in good condition will cost less over their lifetime than streets that are allowed to deteriorate to a poor condition. Without an adequate routine pavement maintenance program, streets require more frequent reconstruction, thereby costing millions of extra dollars. Over time, pavement quality drops until the pavement condition becomes unacceptable.
IMS conducted field surveys, utilizing a Integrate Road Information System (IRISpro Pave), to evaluate the overall condition of the pavement and developing a quantitative formula to represent the overall condition of the pavement, known as a Pavement Condition Index (PCI). The PCI rating correlates to the relative remaining life of the road surface.
PCI Range Description
Relative
Remaining Life Definition
85 – 100 Excellent 15 to 25 Years Like new condition – little to no maintenance required when new; routine maintenance such as crack and joint sealing.
70 – 85 Very Good 12 to 20 Years Routine maintenance such as patching and crack sealing with surface treatments such as seal coats or slurries.
60 – 70 Good 10 to 15 Years Heavier surface treatments and thin overlays. Localized panel replacements.
40 – 60 Marginal to Fair 7 to 12 Years Heavy surface-based inlays or overlays with localized repairs.
Moderate to extensive panel replacements.
25 – 40 Poor 5 to 10 Years Sections will require very thick overlays, extensive panel replacements, surface replacement, base reconstruction, and possible subgrade stabilization.
0 – 25 Very Poor 0 to 5 Years High percentage of full reconstruction.
Temecula has 352 centerline miles of roadways, encompassing over 8.8 million square yards of concrete and asphalt surfacing. The study found that the average PCI for Temecula’s roadway network was 71 with a backlog of 6% (PCI ≤ 40), which is above the national average of 65. To maintain the current condition of the road network, the City needs to spend approximately $7.01 million per year.
Since 2014, the City has invested approximately $7.44 million per year across several Capital Projects and maintenance programs including the Pavement Rehabilitation Program Capital Project and the neighborhood slurry seal program. The study is conducted every 5 years. The next pavement management study will be conducted fiscal year 2029/30. 194 216
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
American with Disabilities Act (ADA) Transition Plan Implementation 99 Auto Mall Wayfinding Signs 100
Bike Lane and Trail Program- Citywide 101
Bike lane and Trail Program- Great Oak Trail Lighting 103 Bike Lane and Trail Program- Temecula Creek South Side Trail 104 Bike Lane Upgrades- Citywide 105
Bridge Maintenance 106
Butterfield Stage Road Extension 177
Butterfield Stage Road Storm Drain Improvements 65
California Society of Municipal Finance Officers (CSMFO) Certificate of Award 17 Capital Improvement Project List 26
Capital Projects Summary – By Funding Source 38
Capital Projects Summary – By Project 52
Children’s Museum Enhancement Project 151
CIP Expenditure Summary 33
CIP Major Revenue Sources Graph 32
Circulation Projects Location Map 64
City Facilities Rehabilitation 107
City Facility Security 108
City Organizational Chart 18
City Security Camera System 109
Citywide Community Fire Protection Plan 110
Citywide Drainage Master Plan 111
Citywide Financial System Upgrade 112
Civic Center HVAC Upgrade 113
Community Recreation Center (CRC) Renovations 114
Community Recreation Center Splash Pad & Shade Structures 152 Community Wildfire Protection Plan 115
Comprehensive General Plan Update 116
CRC Pool Cantilever Restoration 153
De Portola Road/Jedediah Smith Road Roundabout Project 66 Description of Levels 19
Description of Revenue Sources 21
Diaz Road Expansion 67
INDEX
195 217
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
INDEX
Dog Park Renovation 154
Eagle Soar Splash Pad Rehabilitation 155
Electric Vehicles Charging Station 118
Empire Creek Improvements 156
Expenditure Summary by Project Type Chart 37
Fiber Optic Communications Systems- Citywide 119
Fire Station 73 Gym/Garage 120
Fire Station 84 Renovation 121
Fiscal Year 2026-27 Debt Obligations 193
Future Years Projects 179
Glossary of Terms 184
Habitat for Humanity- Old Town Units 93
Harveston Community Park Building Renovations and Expansion 157 Housing Projects Location Map 92
I-15 Congestion Relief 74
I-15/French Valley Parkway Improvements- Phase II 69
I-15/French Valley Parkway Improvements- Phase III 71
I-15/French Valley Parkway Improvements- Phase IV 73
I-15/State Route 79 South Interchange Enhanced Landscaping 122 I-15/State Route 79 South Ultimate Interchange 75
Infill Recreational Amenities 158
Infrastructure Projects Location Map 98
Interstate 15 Corridor Branding and Visioning Improvements 123 La Paz Road Roundabout Reconstruction 77
Las Haciendas Affordable Housing Project 94
Library Alternative Emergency Operations Center Enhancements 124 Library Technology Enhancements 125
Local Roadway Safety Plan Update 126
Long Canyon Creek Park to Ynez Trail 127
Locator Map 181
Long Canyon Creek Park Restrooms 159
Margarita Recreation Center 128
Mary Phillips Senior Center Enhancement and Renovation 129 Medians & Parkways- Citywide 78
196 218
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
INDEX
Medians & Traffic Calming Improvements- Citywide 130
Mercedes Street Sidewalk 79
Mike Naggar Park Pickleball Court Conversion 160
Murrieta Creek Bridge at Overland 80
Murrieta Creek Improvements 131
Nicolas Road Extension & Improvements 178
Nicolas Road Multi-Use Trail Extension 133
Old Town Parking Improvements 134
Old Town Temecula Parklets Program 135
Overland Drive Extension Commerce Center 82
Overland Drive Widening 83
Parameters for CIP Budget Cost Estimates 20
Park Restrooms Renovations, Expansion and Americans with Disabilities Act (ADA) Improvements 161 Parks and Recreation Projects Location Map 150
Parks Improvement Program 162
Pavement Management Program Update 136
Pavement Rehabilitation Program- Citywide 84
Pedestrian Ramp Upgrades- Citywide 137
Pickleball Courts 163
Playground Equipment Enhancement & Safety Surfacing 164 Projected Revenue Summary 29
Projects Funded by Community Facilities District Bonds Project 175 Rancho California Road Median Improvements 86
Ronald Reagan Sports Park Hockey Rink 166
Ronald Reagan Sports Park Skate Park 167
Ronald Regan Sports Park Trail 168
Santa Gertrudis Creek Phase II- Margarita Under-Crossing 138 Santiago Site - Community Garden 169
Sidewalks- Citywide 139
Sidewalks- Old Town Improvements 140
Sidewalks- Pauba Road 141
Sixth Street Improvements 142
South Side Senior Center for Active Adults 143
Sports Court Resurfacing 170
197 219
City of Temecula
Fiscal Years 2027-2031
Capital Improvement Program
INDEX
Sports Field Lighting- Light Emitting Diode (LED) Conversion 171 Status of Pavement Management Program 194
Storm Drain Pipe Lining 144
Summary of Affordable Housing Investment 191
Summary of Completed Projects 182
Summary of Operating & Maintenance Impacts 62
Traffic Signal- Equipment Enhancement Program- Citywide 87 Traffic Signal- Installation- Citywide 88
Traffic Signal- Pedestrian Signal Equipment Upgrade Phase 2- Citywide 145 Traffic Signal- Safety Lights and Signal Communications Upgrade- Citywide 146 Traffic Signal Fiber Optic Extension 147
Transmittal Message 9
Uptown Temecula Affordable Housing Site 95
Uptown Temecula Sports Park 172
Utility Undergrounding- Citywide 148
Vail Ranch Park Restrooms 173
Vine Creek Affordable Housing Project 96
Ynez Road Improvements- Phase I 90
198 220
Cover
221
ANNUAL OPERATING BUDGET
Fiscal Year 2026-27
City Council City Management
Jessica Alexander, Mayor Aaron Adams, City Manager
Matt Rahn, Mayor Pro-Tem Luke Watson, Assistant City Manager Zak Schwank, Council Member Jennifer Hennessy, Finance Director James Stewart, Council Member
Brenden Kalfus, Council Member
City of Temecula
41000 Main Street
Temecula, California 92590
(951) 694-6430
TemeculaCA.gov
222
Temecula Mayor Jessica Alexander was first elected in 2020 to serve on the City Council and re-elected in 2024. As a proud Marine Veteran and former New York Police Officer, Mayor Alexander is a strong advocate for public safety, improving the City’s infrastructure and roadways, and protecting the high quality of life that defines Temecula including its safe neighborhoods, beautifully landscaped parks, and family-friendly amenities.
“It is a profound honor to serve as Mayor, and I approach this responsibility grounded in service and shared hope for 2026.” She adds, “I am deeply committed to leading with compassion, integrity and a steadfast sense of duty that strengthens the heart of Temecula’s service-oriented community.” Mayor Alexander also values preserving the rural character of Temecula’s equestrian communities, along with the City’s overall picturesque appeal from the charm of Old Town to the scenic setting of Temecula Valley Wine Country.
“Temecula’s success lies in its extraordinary people, and I am dedicated to working collaboratively and diligently alongside my council colleagues for the well-being of our City and all its residents.” Jessica Alexander
Mayor
City of Temecula
223
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 3
Table of Contents
TABLE OF CONTENTS
COVER------------------------------------------------------------------------------------------------------------------------------------------- 0 TABLE OF CONTENTS ------------------------------------------------------------------------------------------------------------------------ 3 INTRODUCTION------------------------------------------------------------------------------------------------------------------------------- 9 Transmittal Message---------------------------------------------------------------------------------------------------------------------- 9 Directory------------------------------------------------------------------------------------------------------------------------------------27 City Organizational Chart---------------------------------------------------------------------------------------------------------------28 Mission and Value Statements--------------------------------------------------------------------------------------------------------29 Citywide Long-Term Goals -------------------------------------------------------------------------------------------------------------30 Government Finance Officers Association (GFOA) Award----------------------------------------------------------------------32 California Society of Municipal Finance Officers (CSMFO) Award------------------------------------------------------------33 City of Temecula at a Glance ----------------------------------------------------------------------------------------------------------34 GUIDE TO THE BUDGET DOCUMENT---------------------------------------------------------------------------------------------------35 Understanding the Budget Document ----------------------------------------------------------------------------------------------35 Budgetary Fund Structure--------------------------------------------------------------------------------------------------------------37 Description of Funds---------------------------------------------------------------------------------------------------------------------39 Funds and Departments ----------------------------------------------------------------------------------------------------------------44 Funding Sources by Department------------------------------------------------------------------------------------------------------46 Budget Process----------------------------------------------------------------------------------------------------------------------------47 Budget Engagement Sessions ---------------------------------------------------------------------------------------------------------50 Budget Calendar--------------------------------------------------------------------------------------------------------------------------51 FIVE-YEAR FORECAST-----------------------------------------------------------------------------------------------------------------------53 Long Range Financial Projection------------------------------------------------------------------------------------------------------53 Five-Year Financial Projection – General Fund------------------------------------------------------------------------------------55 Five-Year Revenue Projection – General Fund ------------------------------------------------------------------------------------57 Five-Year Expenditure Projection – General Fund--------------------------------------------------------------------------------59 Five-Year Financial Projection – Measure S Fund---------------------------------------------------------------------------------63 Five-Year Financial Projection – Temecula Community Services District Fund--------------------------------------------67 FINANCIAL SUMMARIES-------------------------------------------------------------------------------------------------------------------69 Fund Balance Summary-----------------------------------------------------------------------------------------------------------------69 Major Revenue Sources-----------------------------------------------------------------------------------------------------------------71 Major Expenditure Categories --------------------------------------------------------------------------------------------------------74 General Fund ------------------------------------------------------------------------------------------------------------------------------77 General Fund – Revenue by Source ------------------------------------------------------------------------------------------80 General Fund – Revenue Detail------------------------------------------------------------------------------------------------81 224
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
4| Annual Operating Budget
General Fund – Fund Summaries----------------------------------------------------------------------------------------------83 Special Revenue and Debt Service Funds-------------------------------------------------------------------------------------------88 Special Revenue and Debt Service Funds – Revenue Detail------------------------------------------------------------89 Special Revenue and Debt Service Funds – Fund Summaries----------------------------------------------------------91 Temecula Community Services District (TCSD)----------------------------------------------------------------------------------105 TCSD – Revenue by Source ---------------------------------------------------------------------------------------------------106 TCSD – Revenue Detail---------------------------------------------------------------------------------------------------------107 TCSD – Fund Summaries-------------------------------------------------------------------------------------------------------110 Successor Agency to the Temecula Redevelopment Agency (SARDA) ----------------------------------------------------119 SARDA – Fund Summary-------------------------------------------------------------------------------------------------------120 Internal Service Funds-----------------------------------------------------------------------------------------------------------------121 Internal Service Funds – Revenue Detail----------------------------------------------------------------------------------122 Internal Service Funds – Fund Summaries--------------------------------------------------------------------------------124 Capital Improvement Program Fund-----------------------------------------------------------------------------------------------133 CIP – Fund Summary -----------------------------------------------------------------------------------------------------------134 PERFORMANCE MEASURES-------------------------------------------------------------------------------------------------------------135 DEPARTMENTAL INFORMATION------------------------------------------------------------------------------------------------------151 City Council-------------------------------------------------------------------------------------------------------------------------------153 City Manager ----------------------------------------------------------------------------------------------------------------------------161 City Clerk----------------------------------------------------------------------------------------------------------------------------------169 City Attorney-----------------------------------------------------------------------------------------------------------------------------175 Finance Department-------------------------------------------------------------------------------------------------------------------179 Human Resources and Risk Management----------------------------------------------------------------------------------------185 Community Development Department-------------------------------------------------------------------------------------------193 Public Works Department------------------------------------------------------------------------------------------------------------203 Temecula Sheriff’s Office-------------------------------------------------------------------------------------------------------------215 Fire Department ------------------------------------------------------------------------------------------------------------------------225 Non-Departmental---------------------------------------------------------------------------------------------------------------------233 Temecula Community Services District -------------------------------------------------------------------------------------------237 Internal Services Funds----------------------------------------------------------------------------------------------------------------253 CAPITAL IMPROVEMENT PROGRAM-------------------------------------------------------------------------------------------------267 CIP – Capital Improvement Program Summary---------------------------------------------------------------------------------267 CIP – Description of Revenue Sources---------------------------------------------------------------------------------------------270 CIP – Capital Projects Revenue Summary ----------------------------------------------------------------------------------------274 CIP – Major Revenue Sources -------------------------------------------------------------------------------------------------------276 CIP – Capital Project Expenditure Summary -------------------------------------------------------------------------------------277 CIP – Expenditure Summary by Project Type------------------------------------------------------------------------------------280 225
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 5
CIP – Capital Projects Summary – by Funding Source -------------------------------------------------------------------------281 CIP – Capital Projects Summary – by Project ------------------------------------------------------------------------------------292 CIP – Summary of Operating & Maintenance Costs ---------------------------------------------------------------------------304 CIP – Future Years Project------------------------------------------------------------------------------------------------------------305 BUDGET AND FISCAL POLICIES---------------------------------------------------------------------------------------------------------307 Budget and Fiscal Policies Compliance Matrix ----------------------------------------------------------------------------------307 I. Financial Strategic Plan Purpose and Organization---------------------------------------------------------------------309 A. Annual Operating Budget (AOB)--------------------------------------------------------------------------------------309 B. Balanced Budget----------------------------------------------------------------------------------------------------------310 C. Five-Year Financial Forecast -------------------------------------------------------------------------------------------310 D. Capital Improvement Program (CIP)---------------------------------------------------------------------------------311 II. Financial Reporting -------------------------------------------------------------------------------------------------------------313 A. Annual Reporting---------------------------------------------------------------------------------------------------------313 B. Interim Reporting --------------------------------------------------------------------------------------------------------314 C. Budget Amendments----------------------------------------------------------------------------------------------------314 D. Extended Annual Reporting--------------------------------------------------------------------------------------------314 III. Fund Balance and Reserves---------------------------------------------------------------------------------------------------314 A. Fund Balance Policy------------------------------------------------------------------------------------------------------314 B. Reserve for Economic Uncertainty-----------------------------------------------------------------------------------314 C. Secondary Reserve for Contingencies-------------------------------------------------------------------------------315 D. Future Capital Project Designations ---------------------------------------------------------------------------------315 E. Other Designations and Reserves------------------------------------------------------------------------------------315 F. Fund Balance Components---------------------------------------------------------------------------------------------315 G. Hierarchy of Spending Fund Balance--------------------------------------------------------------------------------316 H. Unassigned Fund Balance – General Fund -------------------------------------------------------------------------316 IV. Transactions and Use Tax Funding (Measure S)-------------------------------------------------------------------------317 A. Measure S Revenue------------------------------------------------------------------------------------------------------317 B. Appropriation Priorities of Measure S Revenue ------------------------------------------------------------------317 V. Contingency Planning----------------------------------------------------------------------------------------------------------318 A. One-Time Events ---------------------------------------------------------------------------------------------------------319 B. Ongoing Fiscal Constraints---------------------------------------------------------------------------------------------319 VI. Staffing-----------------------------------------------------------------------------------------------------------------------------319 A. Regular Staffing-----------------------------------------------------------------------------------------------------------319 B. Project Staffing------------------------------------------------------------------------------------------------------------320 C. Temporary Staffing-------------------------------------------------------------------------------------------------------320 D. Work Hours----------------------------------------------------------------------------------------------------------------320 E. Overtime Management-------------------------------------------------------------------------------------------------320 226
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
6| Annual Operating Budget
F. Independent Contractors-----------------------------------------------------------------------------------------------321 G. Productivity----------------------------------------------------------------------------------------------------------------3 21 H. Contracting for Services – Private Sector---------------------------------------------------------------------------322 I. Contracting for Services – Government Service Contracts-----------------------------------------------------323 J. Contracting for Services – Regional Approach --------------------------------------------------------------------324 K. Comprehensive Annual Leave Payout-------------------------------------------------------------------------------324 VII. Asset Management and Replacement-----------------------------------------------------------------------------------324 A. Replacement Funds------------------------------------------------------------------------------------------------------324 VIII. Capital Improvement Project Financing and Debt Management-------------------------------------------------325 A. Policy Goals Related to Debt Management------------------------------------------------------------------------325 B. Types of Long-Term Debt That May Be Issued--------------------------------------------------------------------326 C. Capital Improvement Project Financing ----------------------------------------------------------------------------326 D. Criteria for Obligating the General Fund ---------------------------------------------------------------------------327 E. Debt Management-------------------------------------------------------------------------------------------------------329 F. Debt Limits-----------------------------------------------------------------------------------------------------------------3 30 G. Independent Disclosure Counsel -------------------------------------------------------------------------------------330 H. Land-Based Financings--------------------------------------------------------------------------------------------------330 I. Conduit Financings-------------------------------------------------------------------------------------------------------333 J. Refinancings ---------------------------------------------------------------------------------------------------------------333 K. Arbitrage Rebate Compliance-----------------------------------------------------------------------------------------334 IX. Creation of Services Community Facilities District----------------------------------------------------------------------334 A. Eligible Expenses----------------------------------------------------------------------------------------------------------334 B. Selection of Consultants------------------------------------------------------------------------------------------------335 C. Fiscal Impact Analysis (FIA) --------------------------------------------------------------------------------------------335 D. Rate and Method of Apportionment--------------------------------------------------------------------------------336 E. Deposit/Reimbursement Agreement--------------------------------------------------------------------------------336 F. Conditions for Project Approval for New Projects ---------------------------------------------------------------337 X. Interfund Transfers and Loans-----------------------------------------------------------------------------------------------3 37 A. Establishment of Various Funds --------------------------------------------------------------------------------------337 B. Transfer Between Funds------------------------------------------------------------------------------------------------337 C. Interfund Loans-----------------------------------------------------------------------------------------------------------338 XI. Appropriations Limitation-----------------------------------------------------------------------------------------------------338 A. Adopting a Resolution---------------------------------------------------------------------------------------------------338 B. Supporting Documentation Available for Review----------------------------------------------------------------338 C. Calculating Appropriations---------------------------------------------------------------------------------------------338 D. Support of Legislation or Initiatives----------------------------------------------------------------------------------338 E. Voter Approval to Amend Appropriation Limit -------------------------------------------------------------------338 XII. Cost Allocation Plan and User Fee Study Updates--------------------------------------------------------------------338 227
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 7
A. Cost Allocation Plan------------------------------------------------------------------------------------------------------339 B. User Fee Study (Cost of Services Study) ----------------------------------------------------------------------------339 C. Frequency of Studies ----------------------------------------------------------------------------------------------------339 XIII. Pension Funding --------------------------------------------------------------------------------------------------------------339 A. Establishment of an Internal Revenue Code (IRC) Section 115 Irrevocable Trust------------------------339 B. Funding of the Section 115 Irrevocable Trust---------------------------------------------------------------------340 C. Allowable Uses of the Section 115 Irrevocable Trust------------------------------------------------------------340 XIV. Retiree Health Benefit Funding -------------------------------------------------------------------------------------------341 A. Retiree Health Benefit---------------------------------------------------------------------------------------------------341 B. Actuarial Valuation Reporting-----------------------------------------------------------------------------------------341 C. Funding the CERBT-------------------------------------------------------------------------------------------------------341 XV. Signature Delegation---------------------------------------------------------------------------------------------------------342 A. Delegation of City Manager Signature Authority-----------------------------------------------------------------342 B. Delegation of City Manager Settlement Authority---------------------------------------------------------------342 XVI. Emergency Appropriation Policy------------------------------------------------------------------------------------------342 City of Temecula Budget Policy VIII.D. – Criteria for Obligating General Fund------------------------------------------343 APPENDICES --------------------------------------------------------------------------------------------------------------------------------345 Appendix A – Personnel---------------------------------------------------------------------------------------------------------------345 Summary of Changes in Authorized Positions, Personnel and Benefit Costs-------------------------------------345 Schedule of Authorized Positions-------------------------------------------------------------------------------------------347 Schedule of Changes in Allocated Positions------------------------------------------------------------------------------353 Summary of Budgeted Positions --------------------------------------------------------------------------------------------360 Appendix B – Supplemental Information-----------------------------------------------------------------------------------------361 Locator Map----------------------------------------------------------------------------------------------------------------------361 Community Profile and Demographics ------------------------------------------------------------------------------------362 Consolidated Capital Outlay--------------------------------------------------------------------------------------------------36 5 GANN Appropriations Limit---------------------------------------------------------------------------------------------------367 Assessed Value of Taxable Property----------------------------------------------------------------------------------------368 Summary of Federal Grant Expenditures----------------------------------------------------------------------------------369 Legal Debt Margin --------------------------------------------------------------------------------------------------------------370 Fiscal Year 2026-27 Debt Obligations--------------------------------------------------------------------------------------371 Summary of Property Tax Collections--------------------------------------------------------------------------------------372 Principal Secured Property Owners ----------------------------------------------------------------------------------------373 Computation of Direct and Overlapping Bonded Debt----------------------------------------------------------------374 Largest Employers by Number of Employees----------------------------------------------------------------------------376 Comparative City Information -----------------------------------------------------------------------------------------------377 Summary of Interfund Transfers --------------------------------------------------------------------------------------------378 228
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
8| Annual Operating Budget
Summary of Affordable Housing Investment ----------------------------------------------------------------------------379 Summary of City Grant Recipients------------------------------------------------------------------------------------------381 Community Reinvestment Program Funding Matrix-------------------------------------------------------------------383 Additional Resources-----------------------------------------------------------------------------------------------------------384 Appendix C – Glossary/Index --------------------------------------------------------------------------------------------------------385 Glossary of Acronyms----------------------------------------------------------------------------------------------------------385 Glossary of Terms---------------------------------------------------------------------------------------------------------------388 Index -------------------------------------------------------------------------------------------------------------------------------395 229
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 9
TRANSMITTAL MESSAGE
May 21, 2026
Honorable Mayor and Members of the City Council:
I am pleased to submit the Proposed Annual Operating Budget for the Fiscal Year 2026-27. This budget document was developed to serve as the financial plan for the City’s programs and policies. It reflects the resources necessary to meet the goals, programs, and service priorities that the City Council is committed to providing its citizens.
The Fiscal Year 2026-27 Annual Operating Budget has been developed after a considerable review process.
Departmental budget submittals were prepared and reviewed by line item in connection with projected revenues.
Detailed performance objectives and accountability measures were developed consistent with the City’s Quality of Life Master Plan. Five-year revenue and expenditure projections were developed to identify the future impacts of staffing and program changes, as well as the impact of capital improvement projects. The resulting budget is realistic and balanced and continues to provide quality services to the community while effectively utilizing available resources.
As you will read below, the City’s General Fund is not only balanced for the ensuing fiscal year, but also projected to be balanced for the next five fiscal years. Additionally, the City’s reserve funds are fully funded across all five years of the long-range financial forecast.
CITY OF TEMECULA PROFILE
The City of Temecula is a dynamic community comprised of approximately 113,618 citizens. The City maintains 42 parks on 337 developed acres throughout the community, which provide recreation opportunities for both the citizens of Temecula, as well as surrounding communities. Law Enforcement and Fire Protection services are provided through contracts with the County of Riverside.
Known as Southern California's Wine Country, the City of Temecula is a nationally and internationally known tourist destination welcoming over 3 million visitors a year. Temecula is also an innovative, dynamic economic powerhouse and job center for the region, all the while retaining its small-town charm and character that residents cherish. Offering the finest quality of life, Temecula is listed among the safest cities in the State and Nation per FBI statistics. With a diverse population, citizens enjoy picturesque neighborhoods, a vast array of beautifully manicured parks and trails, multi-cultural dining options, retail stores that include the region's premier shopping destination Promenade Temecula, the highest rated School District in Riverside County for its outstanding academic scoreƐ͕ ŚŝŐŚĞƌĞĚƵĐĂƚŝŽŶŽƉƉŽƌƚƵŶŝƚŝĞƐŝŶĐůƵĚŝŶŐDŽƵŶƚ^ĂŶ:ĂĐŝŶƚŽ ŽůůĞŐĞΖƐdĞŵĞĐƵůĂĂŵƉƵƐĂŶĚĂů^ƚĂƚĞ^ĂŶDĂƌĐŽƐĂƚdĞŵĞĐƵůĂ͘ 230
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
10 | Annual Operating Budget
TRANSMITTAL MESSAGE
As a visitor destination, Temecula also offers a vibrant Old Town with boutique shops, outdoor markets, and a distinct foodie district, Pechanga Resort Casino, Southern California’s Wine Country speckled each morning with hot air balloons hovering over grapevines and equestrian trails, championship golf courses, Vail Ranch Historic Headquarters comprised of turn-of-the-century old west structures restored into specialty restaurants and retail, and City of Temecula signature events, parades, museums and a theater. Temecula's scenic landscape of rolling hills, vineyards and wineries are swept clean each afternoon with fresh ocean breezes that funnel through the Santa Margarita gap of the coastal mountains providing an ambience that magnifies the beauty of theCity and Temecula Valley.
ECONOMIC INDICATORS
The City of Temecula monitors several economic and demographic indicators, which play a role in the development of revenue projections.
x Estimated Population: up 1.2% from 2025 (Source:State Department of Finance) x Median Age: up from 37.5 in 2025 (Source:Pop-Facts Report, 4-28-26) x Number of Households: up 3.3% from 2025 (Source:Pop-Facts Report, 4-28-26) x Average Household Income: up 14.6% from 2025 (Source:Pop-Facts Report, 4-28-26) x April Median Home Price: up 3.8% from 2025 (Source:HdL Companies) x Number of Jobs: up 0.4% from April 2025 (Source:EDD)
x April Unemployment Rate: zero change from April 2025 (Riverside County: 5.1%, CA: 5.3%, Nation: 4.3% (Source:EDD & BLS)
Temecula has experienced increases in the majority of the above economic indicators. Population has increased
1.2%, marking two consecutive years of growth. Housing prices continue to climb due to the low inventory, with a
3.8% increase in the median home price. Temecula’s average household income has increased by 14.6%, while the number of jobs has remained relatively flat over the prior year. Unemployment is unchanged, but remains lower than both Riverside County and the State.
113,618 39.9 years 38,128 Income
$166,346
Home Price
$759,000
(Apr’26)
Rate 4.4%
(Mar’26)
54,300
(Apr’26)
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LOCAL ECONOMY AND LEGISLATIVE IMPACTS
Local Economy
As the economic indicators noted above have improved over 2025, the impact to the local economy is evident in the retail activity and sales tax trends. Sales Tax revenue is projected to continue to grow at a modest 2.0% next fiscal year, as both national retailers and local entrepreneurs continue to invest in Temecula by opening businesses, undergoing expansion projects and starting new construction. Currently, there are nine new businesses slated to open soon, including a trampoline park, and multiple retailers and restaurants.
With Temecula’s regional shopping mall, Old Town district, and auto mall, shoppers from the entire Temecula Valley region contribute to the City’s sales tax base. Temecula residents generated $36,988 in sales tax per capita in 2025, which far outpaced neighboring cities and statewide averages.
Source: HdL Companies
Legislative Impacts
The City of Temecula actively follows state and federal legislative proposals each year and works closely with the League of California Cities and the National League of Cities to stay informed and engaged to ensure the City supports legislation that aligns with the City’s local legislative platform guiding principles:
I. Preservation of Local Control - Support measures that preserve and protect the City’s general law powers and duties to enact legislation and policy direction concerning local affairs. Oppose measures that preempt local authority.
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II. Promotion of Fiscal Stability - Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City’s revenue base. Oppose measures that mandate costs with no guarantee of local reimbursement or offsetting benefit. Oppose measures that shift local funds to the county, state, or federal government, without offsetting benefit.
III. Support Funding Opportunities - Support measures that allow the City to compete for its fair share of regional, state and federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, state and federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards.
Governor Newsom’s proposed 2026-27 budget makes significant reductions to the Homeless Housing, Assistance and Prevention (HHAP) grant program. Funding for the program is being reduced by one-half of its historic funding level. Reducing funding to this level will significantly impact shelter capacity, rental assistance, and the development of supportive housing.
California Proposition 36 – Homelessness, Drug Addiction, and Theft Reduction Act was passed in November 5, 2024 and became effective December 18, 2024. This new law allows felony charges for certain repeat theft and drug offenses—including fentanyl possession—reversing portions of Proposition 47. While Temecula is a contract City, Proposition 36 and its implementation impacts the City. Local governments are encouraging lawmakers to approve a $400 million budget request to fund Proposition 36.
Senate Bill 707 Open Meetings: Meeting and Teleconference Requirements – SB 707 was signed into law on October 3, 2025 and became effective January 1, 2026. This new law updates public meeting rules for local agencies, focusing on enhanced teleconferencing, increased accessibility, and, for many, mandatory agenda translation into multiple languages.
Assembly Bill 1383 Public Employees’ Retirement Benefits: Safety Members – AB 1383 is a bill in the California Legislature that addresses public employees’ retirement benefits, specifically for safety members (such as certain law enforcement, fire, and other designated public safety roles) under the Public Employees’ Retirement Law (PERL). Currently, PERL — and the California Public Employees’ Pension Reform Act of 2013 (PEPRA) — set rules for how defined benefit pensions are calculated, including factors like final compensation, credited service, and retirement age. AB 1383 proposes adjustments to these provisions for safety members, potentially modifying eligibility criteria, benefit formulas, or retirement age requirements. 233
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GOALS AND OBJECTIVES
The City Council recently adopted the Temecula 2040 Quality of Life Master Plan (QLMP) in November 2022. The Temecula 2040 Plan is a living document that reflects the vision and long-term goals of the City. As Temecula continues to grow and mature, the Temecula 2040 Plan will be a crucial part of not only maintaining the City’s quality of life, but to take a proactive approach and identify specific community needs, goals, and possible improvements. The City of Temecula utilizes the QLMP to formulate and budget Citywide projects. In addition, the QLMP is used to guide planning, investment decisions, provide vision and continuity for the next phase of the City's journey, and for continuous process improvement in partnership with Temecula's residents.
To incorporate the QLMP into the City’s budget process, the QLMP includes specific goals based on the Core Values of the QLMP. These goals are used by each department to develop short-term objectives and performance measures for completion in the upcoming fiscal year and are reflected in the Department Information and Performance Measures sections of the budget document.
The QLMP outlines 7 Core Values:
BUDGET OVERVIEW
The Fiscal Year 2026-27 Budget reflects a structurally balanced, healthy fiscal outlook across all major funds for the City of Temecula. General Fund, Special Revenue Funds and the Temecula Community Services District (TCSD) Fund revenues are growing, albeit at a modest pace, and expenditures include all contractually obligated increases offset by various budget reductions necessary to partially absorb rising costs in Public Safety departments.
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Healthy & Livable City
Economic Prosperity
Sustainable & Resilient City
Transportation Mobility & Connectivity
Accountable & Responsive City
Government
Safe & Prepared Community Equity
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Major changes from the prior Operating Budget are summarized below.
Assumptions, combined with known contractual obligations are used in forecasting revenue sources, expenditure trends, as well as the long-term financial forecasts.
Current year revenue assumptions are based on multiple factors, including input from the City’s Sales Tax and Property Tax consultants, input from the State of California, local economic trends and development activity.
Assumptions beyond the current yearinclude general inflationary growth projections plus any known development projects, new hotels, expanding businesses and any other specific data that may impact revenue growth. The table below summarizes the growth assumptions for the General Fund Five-Year Revenue Forecast:
Revenue &
Transfers In
Change from
Prior Year
Expenditures &
Transfers Out
Change from Prior
Year
Change in
Fund Balance
from Prior
Year
Variance Analysis
7,357,943 (23,087,065) (10,095,956)
Revenue growth attributable to Sales Tax, Measure S Tax, and Transfers In to support Public Safety expenditures. Expenditure reduction due to reduced Capital Project funding, a one-time transfer between funds to accelerate the City's debt paydown, and reduced transfers from Measure S.
10,116,160 (30,054,868)8,749,284
Revenue growth attributable to Development Impact Fees. Expenditure reduction due to reduced Capital Project funding from Development Impact Fees, Measure A, Affordable Housing and Road Maintenance Funds.
1,951,443 223,512 (357,577)
Revenue growth attributable to the TCSD Operations and Library Funds.
Expenditure growth due to higher internal service fund allocations, increased contractual obligation with Riverside County for library services, and increased Waste Hauling costs.
(715,662) 15,803 (1,013,132)
Revenue decline due to reduced Redevelopment Property Tax Trust Fund distributions due to the wind down of the former Redevelopment Agency.
Expenditure increase due partly to Depreciation which had not been budgeted in the prior year.
1,054,560 (1,605,988) 144,801
Revenue increase due to one-time transfers in to the Facility Replacement Fund.
Expenditure decline due to reduced one-time transfers.
(121,006,977) (210,032,368) 2,647,639
Fund Category
GENERAL FUNDS
SPECIAL REVENUE FUNDS
TEMECULA COMMUNITY SERVICES
DISTRICT (TCSD)
SUCCESSOR AGENCY TO THE TEMECULA
REDEVELOPMENT AGENCY (SARDA)
INTERNAL SERVICE FUNDS
ALL BUDGETED CITY FUNDS
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Assumptions used in forecasting Operating expenditures include the following:
Contractual obligations:
o Negotiated cost of living adjustment of 3.0% for City employees o Negotiated cafeteria benefit increase of $200 per month for City employees o Public Safety labor contracts (7.5% for Sheriff positions, 12.2% for Fire positions, due to vacant Medic positions in the prior fiscal year)
o Reclassification of 20 full-time authorized positions o CalPERS Pension cost sharing of 3% for eligible employees Council policies:
o Acceleration of the Debt/Liability Paydown Strategy ($9,349,256 in FY26-27 for additional discretionary payments towards the City’s CalPERS unfunded pension liability). This is the final payment in the Debt/Liability Paydown Strategy causing the City’s CalPERS Pension program fully funded.
o Annual Replacement allocations for Fleet, Technology, Facilities, Support Services, Street Maintenance and Street Light assets.
Expected savings achieved from the Debt/Liability Paydown Strategy, which will generate approximately $6 million in annual operating savings and $47.7 million in total interest savings. Actuarially determined contributions to the City’s pension and retiree health programs Estimated inflation for non-personnel related expenditures.
GENERAL FUND ANALYSIS
The General Fund forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully funded in all five years.
Ending fund balance for Fiscal Year 2026-27 is projected to be $29,750,915, of which $28,123,539 is committed to fulfilling the Fund’s policy-level reserves of 25% of Operating Expenditures. A total of $477,755 of fund balance is committed to cover the costs of a Sheriff’s Deputy position funded by the Pechanga Tribe.
A total of $1,149,622 in fund balance is unassigned and available for one-time appropriations.
General Fund Revenue Highlights
General Fund revenue is projected to increase by 5.9% over the prior year with a total of $126,785,291. Tax revenues, excluding the transfer from Measure S Fund, are projected to increase by
2.5%. The transfer of Measure S is increasing significantly to fund Public Safety expenditures.
Reserve for
Economic
Uncertainty,
22,498,831
Secondary
Reserve,
5,624,708
Assigned/ŽŵŵŝƩĞ
d Fund Balance,
477,755
Available Fund
Balance, 1,149,622
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
FY26-27 General Fund Balance
$29,750,915
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The General Fund major revenue sources are summarized below:
x Sales Tax ($50,186,189) is projected to
increase by 2.0% over the prior fiscal year as
taxable retail sales are projected to increase
slightly, although there are still concerns
about the overall trajectory of the economy.
x Property Tax ($12,907,422) is projected to
increase by 4.3%, due to a stable housing
market. Property Tax revenue for Fiscal
Year 2026-27is based on assessed valuation
from the year prior, which have shown
steady growth, as inventory is still low and
home prices continue to rise slightly.
x Franchise Fees ($4,100,000) are projected to stay flat due to slight increases in utilities services, offset by continuing declines in cable subscribers.
x Transient Occupancy Tax ($3,841,603) is projected to decline by 2% over the prior year, due to lower occupancy and average daily rates charged by the local hotel and motel establishments. x Licenses, Permits & Service Charges ($7,175,200) are projected to increase by 1.9% due to the continuation of development activity within the City.
x Intergovernmental Revenues ($12,373,457) are projected to increase by 3.1% due to the increases expected in Property Tax In Lieu of Vehicle License Fees which is driven by property value assessments within the City.
x Operating Transfers In ($3,612,514) are projected to decrease by 75.2% due to several one-time Transfers in FY25-26 related to the Debt/Liability Paydown Strategy. FY26-27 reflect the Transfers In of Gas Tax ($3,329,012) and Supplemental Law Enforcement Services Fund ($283,502) revenue. x Operating Transfers In -Measure S ($23,872,579)will continue to fund 11 Sheriff Deputies, staffing for Fire Station No. 95, funding for the future replacement of the fire ladder truck and inspection vehicles, enhanced park maintenance services, plus additional funding to further support Public Safety.
Sales Tax
38%
Property Tax
10%
Prop. Tax in Lieu
of VLF
10%
Franchise Fees
3%
TOT
3%Measure C
2%
Licenses/Permits
6%
Measure S
19%
Transfers In
3%
Reimbursements
4%Other
2%
Fiscal Year 2026-27 General Fund Revenue - $126,785,291 237
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General Fund Expenditure Highlights
The largest expenditure of the General Fund is Public
Safety, making up 58% of total General Fund
expenditures. In accordance with the Measure S ballot
language and City Council appropriation guidelines, the City has invested heavily in Public Safety over the past several years and continues to hold Public Safety as its highest priority.
In addition to the ongoing Measure S-funded Public
Safety expenditures, the Sheriff Department will
continue to exceed the staffing goal of one officer per 1,000 residents and the Fire Department will continue to provide four firefighter personnel per engine at all five fire stations.
General Fund expenditures total $112,494,154, which represents a 7.8% increase over the prior fiscal year. x Sheriff’s Office ($51,423,077)is increasing by 8.0% over the prior year due to inflationary adjustments in the contract with Riverside County. The budget reflects 117 Sworn Deputies, which includes continued patrol coverage of 210 hours per day, and full staffing for the Metro and CORE Teams. The budget also includes the replacement of two motorcycles.
x Fire Department ($13,649,632) is increasing by 7.7% due to inflationary adjustments in the contract with Riverside County. The total Fire budget of $27,136,371 is offset by the Structural Fire Tax Credit of $13,486,739. The department employs 79 positions and provides four firefighters per engine/truck staffing model.
x Non-Safety Departments ($46,852,809) represent a -0.2% decrease over the prior year, due to reductions in the operations, maintenance, project employees and capital outlay expenditures, which more than offset the costs ofthe reclassification of several positions, the 3% cost of living adjustment and increased Cafeteria benefit in accordance with the City’s negotiated labor agreements. x Non-Departmental ($568,636) includes the Staffing Continuity Reserve, PERS Replacement Benefit and Property Tax Administrative fees.
Operating Transfers Out & One-Time Payments
This category of expenditures reflects funds that are transferred to meet the Debt/Liability Paydown Strategy, to the Capital Improvement Program and the Fire Facility Acquisition Fund. x Fire Facility Acquisition Fund ($1,000,000) to repay a portion of the $5 million advance from this fund in FY25-26 in an effort to expedite the paydown of the City’s unfunded pension liability. ^ŚĞƌŝī
46%
Fire
12%
ĚŵŝŶŝƐƚƌĂƟŽŶ
15%
Public Works
19%
Community Devel.
8%
Non-Departmental
0%
General Fund FY26-27 Expenditures - $112,494,154
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x CalPERS Unfunded Pension Liability ($9,349,256) to fully fund the City’s CalPERS pension program and further reduce the City’s annual pension costs by an estimated $6 million per year. x Section 115 Pension Trust ($7,500,000)to augment the Trust for the potential payoff of future CalPERS unfunded pension liabilities, in accordance with Budget Policy XIII – Pension Funding.
Overall, the General Fund remains structurally balanced, with revenues exceeding expenditures, and reserves are fully-funded each year of the ensuing five-year financial forecast. The City continues to budget in a conservative, yet realistic, manner while keeping close watch on several economic indicators. As conditions change throughout the fiscal year, adjustments to revenue or expenditure budgets will be recommended to the City Council for their approval.
MEASURE S FUND
With the approval of a one-cent transactions and use tax measure in November 2016, the Measure S Fund was established to account for this new revenue source. Fiscal Year 2026-27 Measure S revenue is projected to be $40,708,524.
Measure S appropriations of $48,419,650 reflect the priorities established in Budget Policy IV – Transactions and Use Tax Funding.
Public Safety (50%)
The budget includes $24,075,985 of Measure S funding to support the contracts for the Sheriff and Fire Departments. Measure S provides for 11 Sheriff’s Deputies, staffing for Fire Station No. 95, and funding for the future replacement of the fire ladder truck, inspection vehicles and additional funding to further support Public Safety expenditures Asset Management/Investment (7%)
As noted in Council’s appropriation guidelines for Measure S, ensuring adequate reserves are setaside for the future replacement of City-owned assets is critical to the long-term viability of the City’s operations. For Fiscal Year 2026- 27, Measure S is contributing $2,500,000 to the Facilities Replacement Fund, and $1,000,000 to the Streets Maintenance Fund.
Capital Improvement Program (9%)
The budget includes an additional $4,296,247 appropriation in Fiscal Year 2026-27 to complement the current year budget of $32,687,242 to fund multiple CIP projects. The influx of Measure S funding has allowed the City to leverage other funding sources, such as Development Impact Fees and various grant funds, to complete projects in a timelier manner.
Public Safety
$24,075,985
50%
Asset Mgmt
$3,500,000
7%
CIP
$4,296,247
9%
Community
Services
$16,547,418
34%
Measure S -FY26-27 ƉƉƌŽƉƌŝĂƟŽŶƐ
$48,419,650
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Major Projects funded by Measure S include:
x Fire Station 73 Gym/Garage – to construct a gym, storage room and a second garage at the station to house the squad and additional vehicles.
x La Paz Road Roundabout – to redesign and reconstruct the existing roundabout on Ynez Road at the intersection of La Paz Road.
x Mercedes Street Sidewalk – to construct the missing segment of sidewalk on the west side of Mercedes Street between Main Street and 160 feet south of 3rd Street. x Playground Equipment Enhancement and Safety Surfacing – to fund the playground enhancements/safety surfacing replacement at the Mike Naggar, Crowne Hill and Pauba Ridge Parks.
General/Community Services (34%)
The Temecula Community Services District (TCSD) has historically been funded with voter-approved Measure C funding and program-related revenue. Measure S funding is used to augment Measure C, in order to maintain the award-winning programs, activities and events TCSD provides to the citizenry. x TCSD Operations contribution - $14,675,947
x Library contribution - $1,774,877
x Enhanced Custodial Services - $96,594
The ending fund balance within the Measure S Fund is projected to be $26,201,199, which will carry-forward to the ensuing fiscal year. Over the forecasted five-year period, Measure S is projected to have adequate resources to fund public safety, asset management, capital projects and general services.
OTHER GENERAL FUNDS
Fund 006 –Fire Facility Acquisition Fund: This fund was established in Fiscal Year 2021-22 to accumulate resources to acquire and/or construct property for a future Fire Station. At their May 27, 2025 meeting, the City Council approved an advance of $5,000,000 from this fund to accelerate the paydown of the City’s unfunded pension liability. The $5 million advance will be repaid from the savings generated by paying down the unfunded pension liability, with $1 million appropriated in FY26-27. The ending fund balance is projected to be $3,301,210 for Fiscal Year 2026-27.
Fund 110 –Community Reinvestment Program Fund: This fund was established in Fiscal Year 2021-22 to provide grant funding to support the local economy to rebound from the global pandemic. A total of $14,080,000 was transferred into this fund from available General Fund balance. The Council approved six funding categories, including: (1) Business Support ($3,080,000); (2) Non-Profit Support ($1,000,000); (3) Homeless Services ($1,000,000); (4) Housing Assistance ($5,500,000); (5) Behavioral Health Services ($1,500,000) and (6) Higher Education/Workforce Development ($1,000,000). 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.
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MAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law. The City has several Special Revenue Funds. The major Special Revenue funds are highlighted below.
Fund 100 -Gas Tax: Gas Tax revenue is projected to be $3,329,012 which reflects an increase of 1.8% as the volume of gasoline sales is projected to increase slightly. These funds are transferred to the General Fund to support street and road maintenance.
Fund 102 – Road Maintenance Rehabilitation Account (RMRA): Per the Road Repair and Accountability Act of 2017 (SB1-Beall), increased gas tax and vehicle registration fees were imposed to fund street and road projects and other transportation uses Statewide. RMRA revenue is projected to be $3,307,005, which is an increase of 5.7%.
These funds are allocated to the Pavement Rehabilitation Capital Improvement Project.
Fund 103 – Street Maintenance: This fund was established in Fiscal Year 2018-19 to accumulate resources for the future replacement of streets and roads throughout the City. Measure S contributes annually to this fund, which has a projected Fiscal Year 2026-27 ending balance of $5,863,309. FY2026-27 appropriations of $224,356 will partially fund the Overland Drive Widening capital project.
Fund 105 – NPDES In Lieu Fees: This fund was established in Fiscal Year 2019-20 to account for the collection of In Lieu fees associated with the National Pollutant Discharge Elimination System (NPDES). Revenue is received as private development subject to NPDES requirements occur. There are no expenditures programmed for 2026-27 and the ending fund balance is projected to be $195,425.
Fund 106 – Uptown Temecula New Streets In-Lieu Fees: This fund was established in Fiscal Year 2019-20 in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In-Lieu Fee. Developers within the Specific Plan who cannot build new streets will be charged the In Lieu Fee. No activity is anticipated in this fund for 2026-27, and the ending fund balance totals $1,244,370.
Fund 120 – Development Impact Fees (DIF): DIF revenue is projected to be $13,233,663, which reflects an increase of 231.6% due to development activity in the Altair, Elderberry Park and Sommer’s Bend developments. DIF revenue varies from year-to-year as it is based on anticipated development projects. DIF Revenues are transferred to the CIP to fund capital projects. Fiscal Year 2026-27 ending fund balance is projected to be $13,040,554.
Fund 125 – Public, Education & Government (PEG): PEG Fund revenues are received from local cable operators for the sole purpose of supporting the access facilities within the City. PEG Revenues are projected to be $161,436, which will be spent on various technology equipment used to support the broadcast of City Council meetings and events. Fiscal Year 2026-27 ending fund balance is projected to be $991,499.
Fund 140 – Community Development Block Grant (CDBG): CDBG grant revenues are received from the U.S.
Department of Housing and Urban Development (HUD). Fiscal Year 2026-27 revenue is projected to be $986,807 and will support operations, community grants and capital projects. 241
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TRANSMITTAL MESSAGE
Fund 145 – Temecula Energy Efficiency Asset (TEAM) Fund: This fund was established to capture energy efficiency rebates to be used to fund future energy efficiency projects. In Fiscal Year 2020-21, the City received a rebate of $640,754 for the acquisition of street lights and conversion to LED bulbs. There isno activity programmed for Fiscal Year 2026-27, and the ending fund balance is projected to be $155,805.
Fund 150 – AB2766 Motor Vehicle Subvention Fund: This fund was established to account for subvention funds used to implement programs/projects to reduce air pollution from motor vehicles. Fiscal Year 2026-27 revenue is projected to be $170,028. The majority of these funds are programmed for capital projects, including the Citywide Bike Lane and Trail Program, and to support the Clean Cities Coalition. Fiscal Year 2026-27 ending fund balance is projected to be $95,837.
Fund 160 – Supplemental Law Enforcement Services Fund: This fund was established to account for state grant funds to assist cities in delivering front-line law enforcement services. Fiscal Year 2026-27 revenue is projected to be $283,502 and will be transferred to the General Fund to support law enforcement.
Fund 165 – Affordable Housing Fund: The Affordable Housing Fund reflects the housing-related activities of the former Temecula Redevelopment Agency. Total Revenue for Fiscal Year 2026-27 of $863,091 includes the State Department of Finance allocation of $250,000 designated for the administration of the wind down of redevelopment obligations, plus $238,091 in investment interest, and $375,000 for the anticipated sale of an affordable housing unit re-acquired by the City in Fiscal Year 2025-26. Expenditures reflect the ongoing administration of the City’s Affordable Housing program.
Fund 170 – Measure A: Measure A revenue is projected to be $4,578,301 which reflects a 7.9% increase over the prior year. This revenue is restricted for use on local streets and roads and is programmed to support street and road maintenance. Fiscal Year 2026-27 ending fund balance is projected to be $1,538,439.
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the funding of goods and services provided by one department to other benefitting departments on a cost-reimbursement basis.Additionally, the City maintains several Replacement Funds designed to accumulate resources for the future replacement of City equipment, technology, and facilities.
Fund 300 – Insurance: Projected expenses total $3,891,654, which covers the cost of administering the City’s liability and property insurance programs. The projected fund balance of $2,562,829 exceeds the desired reserve level of $1.5 million, which is three times the City’s self-insured retention of $500,000 per incident.
Fund 305 – Workers’ Compensation: Projected expenses total $627,245, which covers the cost of administering the City’s self-insured Workers’ Compensation program. The projected fund balance is $1,310,593and nearly meets the desired balance of $1.5 million, which represents three times the City’s self-insured retention of $500,000 per incident.
Fund 310 – Vehicles and Equipment: Projected expensestotal $924,527 to replace several fleet vehicles and heavy equipment that have reached the end of their useful lives. The projected fund balance is $5,119,660. Replacements planned for 2026-27 include a Construction Dump Truck, a Backhoe, two Ford F-250s, and one Ford F-350. 242
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TRANSMITTAL MESSAGE
Fund 320 – Information Technology: Projected expenses total $7,066,816, which provides for the management of the City’s computers, audio-visual equipment, cyber security, and telephone systems. The projected fund balance is $1,238,806.
Fund 325 – Technology Replacement: Projected expenses total $526,158 to replace the City’s phone system, network switch, and to fund the annual computer replacement program. The projected fund balance is $4,121,708.
Fund 330 – Support Services: Projected expenses total $447,700, which provides for the management of the City’s central reception, printing and mail activities. The projected fund balance is $20,143.
Fund 335 – Support Services Replacement: Projected expenses total $72,200 to replace the Central Services copy machines and includes $42,200 in depreciation expenses. The projected fund balance is $362,222.
Fund 340 – Facilities: Projected expenses total $1,756,842, which provide for the operations and maintenance of the City’s buildings and parking structure. The projected fund balance is $7,842.
Fund 350 – Facility Replacement: Projected expenses total $1,945,434 for Capital Outlay to support the City Facilities Rehabilitation capital project and includes $87,338 in depreciation expenses. The projected fund balance is $4,498,686.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY (SARDA)
Fund 380 – SARDA: Projected expenses total $7,422,458 primarily to pay debt service expenditures on the outstanding 2017A and 2017B Redevelopment Agency Tax Allocation Bonds.
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)
The Temecula Community Services District was established as an assessment district to provide a comprehensive neighborhood and community park system, as well as a complement of recreational and cultural programs and events. TCSD also provides street lighting, median and slope maintenance, refuse hauling and a recycling program, and library services (known as Service Level Funds).
Combined revenue for TCSD totals $35,926,933, which reflects an increase of 5.7% over the prior year. The majority of the increase is from waste hauling assessments and Temecula Public Library operations. Combined expenditures for TCSD total $36,284,510 and reflect an increase of 0.6% due primarily to higher waste hauling costs reflected in the Service Level D (Refuse/Recycling) Fund.
Ending fund balance for TCSD is projected to be $4,745,036 for Fiscal Year 2026-27. 243
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TRANSMITTAL MESSAGE
TCSD Operations, excluding the Service Levels and Library Funds, is projected over a five-year period, as summarized below.
The Five-Year Forecast shows the various revenue sources and projected operating expenditures, which are increasing between 1.9 – 3.4% per year. A long-term fiscal strategic plan is in progress to address the increased reliance on Measure S to balance this Fund into the future. In Fiscal Year 2026-27, TCSD operations will hold five authorized positions and 13 project positions vacant as part of the TCSD Workplan to curtail cost escalation.
CAPITAL IMPROVEMENT PROGRAM (CIP)
The City’s five-year Capital Improvement Program (CIP) is presented to the City Council under separate cover. This program provides a five-year plan for capital improvements that is updated annually to ensure compliance with the
program. The impact of capital projects on maintenance and operating costs were taken into consideration in the development of the operating budget.
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 adjacent table.
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.
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
244
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24 | Annual Operating Budget
TRANSMITTAL MESSAGE
Total funding for the Fiscal Years 2027-31 CIP program
reflects 64% from outside funding sources, with the
remaining 36% provided by various local 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 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 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 Proposed O&M Impacts are included in the Proposed 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
245
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Annual Operating Budget | 25
TRANSMITTAL MESSAGE
2026-27 AUTHORIZED STAFFING
Total authorized Full Time Equivalent (FTE) positions total 202.2 authorized positions, including five Council Membersand 6 unfundedpositions for Fiscal Year 2026-27. The total reflects no change in the number of positions compared to the prior year.
Public Safety personnel is provided through contracts with Riverside County and CAL FIRE. A total of 117 sworn Sheriff’s Deputies and 18 Community Service Officers are included in the Sheriff’s budget, and a total of 79 personnel are reflected in the Fire Department budget for Fiscal Year 2026-27.
In addition to the Authorized Positions, the City employs three Limited-Term-Assignment positions related to the implementation of a new Human Resources/Payroll software system. A significant number of part-time, non- benefitted Project employees are also employed to assist with the multitude of programs offered by the Temecula Community Services District. For Fiscal Year 2026-27, an estimated 88full-time equivalents will be hired as seasonal and part-time support, which is a reduction of two full-time equivalent positions from the prior year. -
50.00 100.00
150.00
200.00
250.00
F
Y
1 9
9 8
-
9 9
F
Y
1 9
9 9
-
0 0
F
Y
2 0
0 0
-
0 1
F
Y
2 0
0 1
-
0 2
F
Y
2 0
0 2
-
0 3
F
Y
2 0
0 3
-
0 4
F
Y
2 0
0 4
-
0 5
F
Y
2 0
0 5
-
0 6
F
Y
2 0
0 6
-
0 7
F
Y
2 0
0 7
-
0 8
F
Y
2 0
0 8
-
0 9
F
Y
2 0
0 9
-
1 0
F
Y
2 0
1 0
-
1 1
F
Y
2 0
1 1
-
1 2
F
Y
2 0
1 2
-
1 3
F
Y
2 0
1 3
-
1 4
F
Y
2 0
1 4
-
1 5
F
Y
2 0
1 5
-
1 6
F
Y
2 0
1 6
-
1 7
F
Y
2 0
1 7
-
1 8
F
Y
2 0
1 8
-
1 9
F
Y
2 0
1 9
-
2 0
F
Y
2 0
2 0
-
2 1
F
Y
2 0
2 1
-
2 2
F
Y
2 0
2 2
-
2 3
F
Y
2 0
2 3
-
2 4
F
Y
2 0
2 4
-
2 5
F
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2 0
2 5
-
2 6
F
Y
2 0
2 6
-
2 7
210.75 202.20
City of Temecula
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246
City of Temecula
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Annual Operating Budget
26 | Annual Operating Budget
TRANSMITTAL MESSAGE
CONCLUSION
In conclusion, the City of Temecula is in a solid fiscal position with the General Fund balanced and all reserves fully funded not only in Fiscal Year 2026-27 but throughout the ensuing five-year period. The Capital Improvement Program is robust, with 69% of all Project Costs funded, and will deliver a wide array of improvements to infrastructure, facilities, affordable housing, enhanced parks, new trails and many other amenities the citizens of Temecula enjoy. With the ongoing support of the Council, the City accelerated its Debt/Liability Paydown Strategy and will become 100% debt- free by July 2026 with a fully-funded CalPERS Pension program.
I would like to express my appreciation to the City Council for providing the direction and support crucial to achieving the City’s goals. I would also like to recognize the contributions of City staff for not only creating a responsive operating budget, but also for their commitment to providing top quality services to all who live, work, and play in Temecula. I would like to give special thanks to the City’s Budget Team: Jennifer Hennessy, Director of Finance; Ward Komers, Assistant Director of Finance; Paula Majors, Fiscal Services Manager; and Catlin Dorset, Budget Manager for their long hours and dedication to the City and this budget process.
Sincerely,
Aaron Adams
City Manager
247
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Annual Operating Budget
Annual Operating Budget | 27
City Council Resolution
Summary of Changes Between Proposed and Adopted Budget
Directory
DIRECTORY
EXECUTIVE MANAGEMENT:
City Manager...................................................................................................Aaron Adams City Attorney.............................................................................................Peter M. Thorson Assistant City Manager....................................................................................Luke Watson Director of Legislative Affairs/City Clerk...............................................................Randi Johl Director of Finance ..................................................................................Jennifer Hennessy Director of Public Works/City Engineer............................................................Ron Moreno Director of Community Development...............................................................Matt Peters Director of Community Services.........................................................................Erica Russo Director of Information Technology and Support Services...........................Michael Heslin Interim Director of Human Resources/Risk Management...........................Becky Obmann Captain/Temecula Police Chief...........................................................................Mark Rigali Division Chief/Temecula Fire Chief .....................................................................John Crater Assistant to the City Manager .........................................................................Betsy Lowrey CITY OF TEMECULA BUDGET TEAM:
Director of Finance ......................................................................................Jennifer Hennessy Assistant Finance Director..................................................................................Ward Komers Fiscal Services Manager......................................................................................Paula Majors Management Analyst...........................................................................................Catlin Dorset P498T 3bA#yy
City Manager...................................................................................................Aaron Adams 248
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Annual Operating Budget
28 | Annual Operating Budget
City Organizational Chart
CITY ORGANIZATIONAL CHART
249
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Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 29
Mission and Value Statements
MISSION STATEMENT
The mission of the City of Temecula is to maintain a safe, secure, clean, healthy, and orderly community; to balance the utilization of open space, parks, trail facilities, quality jobs, public transportation, diverse housing, and adequate infrastructure; and to enhance and revitalize historic areas.
The City will encourage programs for all age groups, utilize its human resources, and preserve its natural resources while stimulating technology, promoting commerce, and utilizing sound fiscal policy.
It is the City Council’s resolve that this mission will instill a sense of pride and accomplishment in its citizens and that the City will be known as a progressive, innovative, balanced, and environmentally sensitive community.
VALUE STATEMENT
TEAMWORK among all employees
ENHANCEMENT of the work environment through open lines of communication MUTUAL respect of others
EDUCATION of employees and citizens about the operations and accomplishments of the City CUSTOMER service is our most important product
UNLIMITED potential for continued personal growth and organizational development LEADERSHIP in local government
ASSUMING 100% responsibility for projects and assignments 250
City of Temecula
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Annual Operating Budget
30 | Annual Operating Budget
Citywide Long-Term Goals
CITYWIDE LONG-TERM GOALS
CORE VALUES: 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:
Support healthy and active lifestyles. Be a sustainable community that embraces residents’ quality of life. Be a diverse community that values and supports people of all ages, backgrounds, cultures, disabilities and religious beliefs. Provide accessible sports, recreational, cultural, health/therapeutic and community engagement facilities, programs and resources for all Temecula residents. Enhance Temecula’s position as a regional medical center of excellence. Value the growth of non-profit organizations, churches, temples, mosques, and other places of worship. Continue to be a community where local history is remembered and respected, and local culture and artistic creativity is supported.
Remain one of the safest cities in California and the nation. Ensure funding for public safety remains the highest priority. Maintain a ratio of one police officer per 1,000 population. Support community oriented policing and maximize community leadership in public safety. Achieve a City ISO rating of
1.0. Maintain a five minute or less response time for fire protection. Minimize impact to life, property and the environment from natural hazards and emergency situations. Provide recreational and other activities for youth. Provide effective enforcement of City zoning, building, fire and grading codes, and graffiti abatement. Continue to provide public information and training surrounding emergency management and public safety.
Safe & Prepared Community
Healthy & Livable City
Transportation Mobility & Connectivity
Maintain and improve our roadway network. Promote job growth in Temecula and nearby areas.
Market the opportunities to work and shop locally. Expand and enhance the transportation network.
Establish a connected pedestrian, bicycle and equestrian transportation system. Coordinate land use and transportation to create a balanced, modern and integrated transportation system. Increase transportation and mobility options. Develop a Complete Streets Policy document. Additional public Electric Vehicle (EV) charging stations.
251
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Annual Operating Budget
Annual Operating Budget | 31
CITYWIDE LONG-TERM GOALS
SHORT TERM OBJECTIVES: In order to ensure meaningful financial priorities, each department develops Short Term Objectives rooted in the Citywide Long-Term Goals and the Core Values. Each Short-Term Objective is a department’s incremental step toward achieving the overall Citywide Long-Term Goals.
Withinthe Departmental Information Section of this budget, each Department provides their Short-Term Objectives for the ensuing fiscal year.
Sustainable & Resilient City
Be the most sustainable city in Southern California. Ensure safe and sufficient water supplies for the 21st century. Work to maintain the City’s high level of air quality possible in Temecula. Develop community resiliency in infrastructure, the economy, natural resources, and hazard mitigation.
Adopt a Climate Action Plan (CAP) as part of the General Plan update and Environmental Impact Report (EIR).
Equity
Support the fair and equitable treatment of all human beings in a just society. Foster a healthy environment and prosperous opportunities for all residents of Temecula. Exhaust all methods of communication and outreach between the City and its residents. Monitor the City’s budget and resource allocation to close inequity gaps to ensure that the City’s programs, services, educational pathways and infrastructure meet the needs of diverse communities.
Accountable & Responsive City Government
Provide consistently professional services and information to customers and constituents. Promote innovation and adopt technology that enhances access to information and data. Maintain a flexible organization which responds to the changing needs and priorities of the community. Provide the highest quality of service at the most cost-effective rate while being fiscally responsible. Ensure transparency in all aspects of City government.
Economic Prosperity
Provide an entrepreneurial culture that offers a growing number of diverse high-paying jobs.
Encourage the broadening of higher education opportunities both public and private. Foster an integrated Career Technical Education (CTE) system that builds on curricula offered through Temecula Valley Unified School District, Mt. San Jacinto College and the CSU San Marcos campus at Temecula. Continue to protect the City’s special natural resources. 252
City of Temecula
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Annual Operating Budget
32 | Annual Operating Budget
Government Finance Officers Association (GFOA) Award
GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Temecula for its annual budget for the fiscal year beginning July 1, 2025.
To receive this award, a governmental unit must publish a budget document that meets programs criteria such as policy document, operations guide, financial plan, and communication device.The award is valid for a period of one year only, and the City of Temecula has received this award every year since 2001. We believe our current budget continues to conform to program requirements and we are submitting it to GFOA to determine its eligibility for another award.
253
City of Temecula
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Annual Operating Budget
Annual Operating Budget | 33
California Society of Municipal Finance Officers (CSMFO) Award
CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS AWARD
The California Society of Municipal Finance Officers (CSMFO) recognizes those entities with highly professional budget documents with two levels of certificates. The first level is the “Meritorious Budget Award,” which requires the entity to meet a very specific list of criteria defined by CSMFO. The second level is the “Operating Budget Excellence Award,” which requires that the organization meet even higher criteria which effectively enhances the usability of the document.
In preparing the ensuing Fiscal Year budget, staff has once again followed CSMFO’s criteria. This document will be submitted to the CSMFO for the Fiscal Year 2026-27 budget award program. 254
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
34 | Annual Operating Budget
City of Temecula at a Glance
CITY OF TEMECULA AT A GLANCE
Within Temecula City limits
CITY OF TEME
Demographics
Median Housing Values
April 2026: $759,000
April 2025: $731,500
15th Safest
City in the
U.S.
Forbes, 2024
Median Age 39.9
Number of Jobs
$166,346
Unemployment Rate (Mar ‘26)
4.4%
Number of Registered Voters 71,907
Population
2026: 113,618
2025: 112,220
Top 20%
TVUSD Test Scores rank
in the top 20% of all public schools in
California
A AT A GLANCE
FFiscal HHighlights
General Fund
Operating Revenue: $126,785,290
Operating Expenditures: $112,494,154
Fund Balance: $29,750,913
40%
Percentage of residents with a 4-year
College Degree
City Motto:
“Old Traditions,
New Opportunities”
Authorized/Benefitted Positions
Sworn Sheriff’s Officers
# of Parks
Miles of Streets
Fire Personnel
Capital Improvement Program
$916,322,680 94 Projects
202.2
117
79 329
42 Avg. Household Income
54,300
TK-12 Schools: 30
Students: 26,531
Teachers: 1,453
Education
Quality of Liife Locall Economy 8.75%
Sales Tax Rate
3.4 million
Visitors Per Year (2024)VV
Human Services
33 Family Friendly
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Annual Sales Tax Revenue (2025)
Promenade Mall Area = $9.4M
Motor Car Parkway = $8.5M
Business Park = $5.9M
Temecula Pkwy = $5.3M
Regional Shopping = $11.5M
Old Town Temecula = $931k
255
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 35
Guide to the Budget Document
Guide to the Budget Document
Understanding the Budget Document
UNDERSTANDING THE BUDGET DOCUMENT
This budget document provides the public with concise and readable information about City government, and displays the objectives and budget of the City of Temecula for the Fiscal Year 2026-27. The budget document is divided into the following sections:
INTRODUCTION
The budget document begins with the transmittal letter by the City Manager, which provides an overview of the Fiscal Year 2026-27 Operating Budget by highlighting programs, major projects and changes in revenue and expenditure allocations for the upcoming fiscal year. There is an analysis of the impact of legislation on the City budget, as well as recent economic indicators. The introduction section details Temecula’s Mission and Value Statements. The Long-TermGoals and Objectives provide further detail into the policies and the goals and objectives which drive the budget process. These are linked to each Department’s long-term goals and objectives. The City Directory outlines the Executive Management and Budget Team staff members who work on a daily basis implementing the goals and strategies outlined in the Annual Operating Budget. The Citywide Organization Chart displays City Departments and reporting structure. This section also includes copies of budget awards for the previous fiscal year budgets.
GUIDE TO THE BUDGET DOCUMENT
In addition to this document, the Guide to the Budget Document section contains the Budgetary Fund Structure, whichprovides a quick graphic overview of the City’s budgetary fund structure and includes all funds that are subject to appropriation. The Description of Funds provides a narrative description of these funds which are graphically depicted in the Fund Use by Department section. The Summary of Accounting Principles explains the basis of accounting or all appropriated funds. The Budget Process and Budget Calendar describe the City’s process for preparing this year’s Annual Operating Budget.
FIVE YEAR FORECAST
This section outlines the City of Temecula’s five-year strategic planning tool which allows the City to project the impacts ofproposed programs, operating costs, and capital improvement projects in the future. This forecast assists in long range planning and policy development by ensuring that resources will be available to meet the needs of our community into the future.
FINANCIAL SUMMARIES
The Financial Summaries section provides a complete overview and analysis of the total resources budgeted by the organization. There is detail on each specific fund, fund balance changes, and a complete budget picture for the current and previous two fiscal years. This section includes summaries of revenues and expenditures for all appropriated Operating Budget funds. Fund balance, revenue and expenditure changes are explained in this section as well. Historical and categorical data are provided for comparative purposes. 256
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UNDERSTANDING THE BUDGET DOCUMENT
PERFORMANCE MEASURES
The Performance Measures section includes the listing of each department’s performance measures used in the development of the programs, activities and objectives for each department. The performance measures align with the City’s seven Core Values identified in the Temecula 2040 Quality of Life Master Plan (QLMP) and the strategic goals established for each Core Value.
DEPARTMENTAL INFORMATION
The Department Information section includes the department/program description, mission statements, and quantifiable short-term objectives and performance measures for each operating program in the General Fund, Temecula Community Services District, and Internal Service Funds. Budget information is organized by department and/or cost center and a short narrative is provided which analyzes expenditure changes from the previous year.
CAPITAL IMPROVEMENT PROGRAM
This section summarizes the budgeted capital expenditures which are further detailed in the separate Capital Improvement Budget. This section provides a summary of all projected Capital Improvement revenues and descriptions of those sources, as well as a description of all Capital Improvement Program projects. This section also includes forecasts of operating costs associated with Capital Improvement projects which have been included as part of the operating budget.
BUDGET AND FISCAL POLICIES
The General Financial policies outline the City’s policies related to budget preparation, staffing, debt management, fund/district purposes and financial reporting requirements.
APPENDIX
This section provides supplemental financial statistical information such as, property tax information, and comparative City information. There is also a glossary of acronyms and terms to guide the reviewer in understanding this document.
Additional information on the City’s fiscal affairs is available on the City’s website:
TemeculaCA.gov/Financial Reports
Quarterly Financial Statements
Annual Comprehensive Financial Reports
Cities Financial Transactions Reports
For further information, please contact the Temecula Finance Department at (951) 694-6430. 257
City of Temecula
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Annual Operating Budget
Annual Operating Budget | 37
Budgetary Fund Structure
BUDGETARY FUND STRUCTURE
x General (Fund 001)*
x Measure S (Fund 002)*
x Fire Facility Acquisition (Fund 006)*
x Community Reinvestment Program (Fund 110)*
x Gas Tax (Fund 100)
x Road Maintenance Rehabilitation Account (RMRA) (Fund 102) x Street Maintenance (Fund 103)
x NPDES In Lieu Fees (Fund 105)
x Uptown Temecula New Streets In-Lieu Fees (Fund 106)
x Development Impact Fees (DIF) (Fund 120)
x Public, Education & Government (PEG) Fees (Fund 125)
x Community Development Block Grant (Fund 140)
x Temecula Energy Efficiency Asset Management (Fund 145) x AB 2766 Motor Vehicle Subvention (Fund 150)
x Supplemental Law Enforcement Services (Fund 160)
x Affordable Housing (Fund 165)*
x Measure A (Fund 170)*
x Public Art (Fund 198)*
x Parks and Recreation Citywide Operations (Fund 190)*
x Service Level B – Streetlight Replacement (Fund 191)* x Service Level B - Street Lighting (Fund 192)*
x Service Level D - Refuse and Recycling (Fund 194)*
x Service Level R - Street/Road Maintenance (Fund 195)* x Service Level L - Harveston Lake Park Maintenance (Fund 196)* x Service Level C - Landscape/Slope Maintenance (Fund 501-530)* x Library (Fund 197)*
GOVERNMENTAL FUNDS
GENERAL FUNDS
SPECIAL REVENUE FUNDS
TEMECULA COMMUNITY SERVICES (TCSD) FUNDS
258
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38 | Annual Operating Budget
BUDGETARY FUND STRUCTURE
x Capital Improvement Fund (Fund 210)*^
x Community Facilities District Funds (Fund 273-278)^
x Insurance (Fund 300)
x Workers’ Compensation (Fund 305)
x Vehicle and Equipment (Fund 310)
x Information Technology (Fund 320)
x Technology Replacement (Fund 325)
x Support Services (Fund 330)
x Support Services Replacement (Fund 335)
x Facilities (Fund 340)
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GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUNDS
PROPRIETARY FUNDS
INTERNAL SERVICES FUNDS
PRIVATE – PURPOSE TRUST FUNDS
x Successor Agency to the Redevelopment Agency (SARDA)
Debt Service (Fund 380)
FIDUCIARY FUNDS
*Denotes the City’s Major Funds
^Denotes funds which are subject to appropriation and included in audited financial statements, but are summarized and adopted separately and/or as part of the Capital Improvement Program budget. 259
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Annual Operating Budget
Annual Operating Budget | 39
Description of Funds
DESCRIPTION OF FUNDS
The City of Temecula revenues and expenditures are accounted for in a series of funds. Each fund is an autonomous accounting entity, established in accordance with legal and professional accounting standards. Funds are used to segregate the various financial activities of a governmental entity and to demonstrate compliance with specific regulations, restrictions or limitations, (i.e., demonstrating that restricted revenues are spent only for allowed purposes).
Funds used in government are classified into three broad categories: governmental, proprietary and fiduciary.
Governmental funds include activities usually associated with the operations of a typical state or local government (public safety, general government activities, etc.). Proprietary funds are used in government to account for activities often found in the private sector (utilities, stadiums, and golf courses are prime examples). Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent.
The appropriated funds utilized by the City of Temecula, governmental, fiduciary, and proprietary, are detailed below. The City of Temecula details the Capital Improvement Funds in a separate document, although the Capital Improvement program and its operating impacts are outlined in this budget document in the Capital Improvement Program section.
BASIS OF BUDGETINGBASISOF BUDGETING
All governmental funds are accounted for and budgeted using the modified accrual basis of accounting. Their revenues are recognized when they become “measurable” and “available.” Revenues are considered measurable when they are reasonably estimable. Revenues are considered available when they will be collected either during the current period or 60 days after the end of the period to pay current year liabilities. The primary revenue sources susceptible to accrual are property and sales taxes, franchise fees, transient occupancy taxes, investment income, fines and forfeitures collected by County courts, and motor vehicle-in-lieu subventions. The basis of budgeting is the same as the basis of accounting used in the City's Annual Comprehensive Financial Report (ACFR).
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest due on general long-term debt which is recognized when due.
Proprietary and Fiduciary funds are accounted for and budgeted using the full accrual basis of accounting, i.e., revenues are recognized in the period earned and expenses are recognized in the period incurred.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded to reserve that portion of the applicable appropriation, is employed in the governmental funds.
Outstanding encumbrances committed to current-year encumbrances at the end of the fiscal year are recorded as reservation of fund balance since the commitments will be paid in the subsequent year. Encumbrances do not constitute expenditures or liabilities.
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40 | Annual Operating Budget
DESCRIPTION OF FUNDS
GOVERNMENTAL FUNDSGOVERNMENTAL FUNDS
General Funds:General Funds:
General Funds are used to account for most governmental functions and focus on the near-term inflows and General Funds are used to account for most governmental functions and focus on the near-term inflows and outflows of spendable resources.
General Funds are used to account
outflows of spendable resources.outflows of spendable resources General Fund (001)* -This is the general operating fund for the City, utilized to account for all resources not required to be accounted for in another fund.
Measure S Fund(002)* -This fund is used to track the uses of the one-cent Transactions Use Tax, known as Measure S, approved by Temecula voters on November 8, 2016. This revenue source is discretionary and is to be used in accordance with the Council’s Appropriation Guidelines, noted in the City’s Budget and Fiscal Policies.
Fire Facility Acquisition Fund (006)* –This fund is used to accumulate the necessary funds to acquire property for a future Fire Station, construct a future Fire Station, and/or renovate existing Fire Stations.
Community Reinvestment Program (110)* –This fund was established to provide various community grants to support the local economy in its recover from the COVID-19 global pandemic.
Special Revenue Funds:
Special Revenue Funds are used to account for specific resources that are legally restricted to expenditure for particular purposes.
Gas Tax Fund (100) –The City maintains this fund to account for the Highway User’s Tax revenues received from the State of California under Sections 2013, 2105, 2107, and 2107.5 of the Streets and Highways Code.
Road Maintenance Rehabilitation Account (RMRA) Fund (102) –This fund is to account for gasoline and vehicle taxes pursuant to the Road Repair and Accountability Act of 2017 (SB1 Beall). Monies are collected by the State of California and allocated to local agencies for streets and roads projects and other transportation uses.
Street Maintenance Fund (103) –This fund was established to accumulate resources for the future replacement of streets and roads throughout the City.
NPDES In Lieu Fees Fund (105) –This fund was established to account for the collection of fees to fund, or partially fund, alternative compliance projects in-lieu of meeting certain requirements of the National Pollutant Discharge Elimination System (NPDES) Permit onsite.
Uptown Temecula new Streets In-Lieu Fees (106) –This fund was established in conjunction with the adoption of the Uptown Temecula Specific Plan New Streets In-Lieu Fee. The Specific Plan requires developers to dedicate right-of-way and construct new street improvements adjacent to or through their development sites. Developers within the Specific Plan who cannot contribute right-of-way and/or build new streets will be charged a new streets in-lieu fee.
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DESCRIPTION OF FUNDS
Development Impact Fees Fund (120) –Used to account for activity generated and funded by development applications to offset the effect of development. Mitigation projects include infrastructure, fire protection, public facilities and services, libraries, roads, schools, parks, traffic signal mitigation and open space. This fund is appropriated through the Capital Improvement Program budget.
Public, Education & Government (PEG) Fees Fund (125) –Public Education and Government Access programming is supported by the PEG fee that is assessed to each cable subscriber. According to state law, these funds must be used only for the production of PEG Access programming.
Community Development Block Grant (CDBG) Fund (140)–This fund is used to account for grants received from the U.S. Department of Housing and Urban Development (HUD). The grants are used for the redevelopment of a viable community by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of Temecula Energy Efficiency Asset Management (TEEM) Fund (145) –This fund was created to capture energy efficiency rebates and reimbursements as well as expenditure savings resulting from energy efficiency projects completed at various City facilities.
AB 2766 Motor Vehicle Subvention Fund (150) –This fund is used to account for State funds that are used to implement programs and projects that reduce air pollution from motor vehicles. This fund is used for Capital projects and to account for operational costs such as the Natural Gas operated Harveston Trolley, which provides free transportation within the Temecula business district.
Supplemental Law Enforcement Services Fund (160)–The City maintains this fund to account for the Supplemental Law Enforcement Services (SLESF) monies which are exclusively expended to provide front line law enforcement services provided by the State of California. These monies supplement existing services and are unable to be used to supplant any existing funding for law enforcement services provided by the City.
Affordable Housing Fund (165)* –The Affordable Housing fund contains the assets as well as loan and rental income from the former Redevelopment Agency which have been transferred to the City of Temecula.
Measure A Fund (170)* –This fund was established to account for the City’s share of the County of Riverside’s additional one-half percent sales tax allocation. These monies are restricted for use on local streets and roads. Measure A was approved by the Riverside County voters originally in 1988 and was extended in 2002. The funds are administered by the Riverside County Transportation Commission (RCTC) and will continue to fund transportation improvements through 2039.
Public Art Fund (198)* –This fund was established pursuant to Temecula Municipal Code Section
5.08.040, whereby the fund serves as a depository for the fees paid in lieu of art as well as monetary donations for public art. The Public Art In Lieu fee is one-tenth of one percent of an eligible development project in excess of $100,000. Eligible uses of this fund include the design, acquisition, installation, improvement, maintenance and insurance of public artwork; offering of performing arts programs on City property for the community; and art education programs on City property for the community. 262
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DESCRIPTION OF FUNDS
Temecula Community Services District (TCSD) Funds (190-198, 501-530)*:
Upon incorporation of the City of Temecula, effective December 1, 1989, voters approved the formation of the Temecula Community Services District (TCSD) to provide specif ied services to properties within its jurisdiction. TCSD is a separate legal entity than the City and operates under the authority of Community Services District Law. Benefit assessments, and a special tax (Measure C) are charged to property owners within the District, are received to provide specified services identified below:
Parks and Recreation - Facility operations and maintenance, community recreation programs Service Level “B” - Streetlight Replacement
Service Level “B” - Residential streetlights
Service Level “C” - Perimeter landscaping and slope maintenance Service Level “D” - Refuse collection, recycling, and street sweeping Service Level “R” - Street and road maintenance
Service Level “L” - Harveston Lake Park maintenance
Library Fund - Services at the Ronald H. Roberts Temecula Public Library on Pauba Road Capital Projects Funds:
Capital Projects funds are used to account for the acquisition and/or construction of major capital assets.
Capital Improvement Fund (210)*–This fund was established to account for the City's Capital Improvement Program revenues and expenditures.
PROPRIETARY FUNDSPROPRIETARY FUNDS
Internal Service Funds:
Internal Services Funds are used to account for the financing of goods or services by one department to other departments of the City on a cost reimbursement basis.
Insurance (300)-This fund was established to fund and account for the City’s liability and property insurance costs.
Workers’ Compensation (305) -This fund was established to accumulate resources for Workers’ Compensation liabilities.
Vehicles and Equipment (310)-This fund was established to accumulate resources for the purchase of future replacement vehicles and equipment.
Information Technology (320)-This fund was established to account for the City’s Information Technology activities.
Technology Replacement (325) -This fund was established to account for computer, software and telephone equipment and to accumulate resources for replacement of this equipment.
Support Services (330)-This fund was established as a cost center for the City’s central duplicating, printing, and mailing activities.
Support Services Replacement (335)-This fund was established to account for the City’s copy and duplicating equipment and to accumulate resources for replacement of this equipment. 263
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DESCRIPTION OF FUNDS
Facilities (340)-This fundwas established to account for the cost of the Civic Center, Business Incubator, City Maintenance Facility, and Civic Center Parking Structure operations and maintenance.
Facilities Replacement Fund (350)-This fund was established to accumulate resources for the future replacement of equipment, systems and fixtures within City-owned facilities.
FIDUCIARY FUNDSFIDUCIARY FUNDS
Private-Purpose Trust Funds:
Private-Purpose Trust Funds are used to account for resources held and administered by the reporting government when it is acting in a fiduciary capacity for other governments.
Successor Agency to the Redevelopment Agency (SARDA) Debt Service Fund (380)–This fund is used to account for payment obligations of the successor agency as a result of the State’s dissolution of Redevelopment Agencies.
*Denotes the City’s Major Funds
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Funds and Departments
FUNDS AND DEPARTMENTS
City of Temecula
City Funds
001 General*
002 Measure S*
006 Fire Facility Acquisition*
100 Gas Tax
102 Road Maintenance Rehabilitation Act (RMRA)
103 Street Maintenance Fund
105 NPDES In Lieu Fees
106 Uptown Temecula New Streets In Lieu Fees
110 Community Reinvestment Program*
120 Development Impact Fees
125 Public, Education & Government (PEG)
140 Community Development Block Grant (CDBG)
145 Temecula Energy Efficiency Asset Management
150 AB 2766 Motor Vehicle Subvention
160 Supplemental Law Enforcement Services
165 Affordable Housing*
170 Measure A*
198 Public Art*
210 Capital Improvement Program*
300 Insurance
305 Workers’ Compensation
310 Vehicles and Equipment
320 Information Technology
325 Technology Replacement
330 Support Services
335 Support Services Replacement
340 Facilities
350 Facilities Replacement
380 SARDA Debt Service
General Fund Departments
001.100 City Council
001.101 Community Support
001.110 City Manager
001.111 Office of Public Information & Economic Development 001.115 Emergency Management
001.120 City Clerk
001.130 City Attorney
001.140 Finance
001.150 Human Resources
001.161 Planning
001.162 Building & Safety
001.163 Land Development
001.164 Public Works
001.165 CIP Public Works
001.167 Parks Maintenance
001.170 Temecula Sheriff’s Office
001.171 Fire
001.172 Animal Control
001.199 Non-Departmental
*Denotes the City’s Major Funds
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FUNDS AND DEPARTMENTS
Temecula Community Services District (TCSD)
TCSD Funds
190 TCSD Citywide Operations*
191 Service Level B – Streetlight Replacement*
192 Service Level B – Street Lighting*
194 Service Level D – Refuse and Recycling*
195 Service Level R – Emergency Road Maintenance*
196 Service Level L – Harveston Lake Park Maintenance* 197 Library*
501-530 Service Level C – Landscape/Slope Maintenance* TCSD Departments
190.180.164 General Maintenance
190.180.999 General Operations
190.181.999 Human Services Operations
190.182.999 Community Recreation Center Operations
190.183.999 Special Events Operations
190.184.999 Facilities & Rentals Operations
190.185.999 Museum and Cultural Arts Operations
190.186.999 Aquatics Operations
190.187.999 Sports Operations
190.189.999 Community Theater Operations
190.197.999 Contract Classes Operations
190.201.999 Homeless Outreach and Prevention Operations 190.202.999 Workforce Development
*Denotes the City’s Major Funds
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Funding Sources by Department
FUNDING SOURCES BY DEPARTMENT
City Funds General
Government
Development
Services
Community
Services
Public
Works
Public
Safety
Major Funds
Fund 001: General Fund 3333333333
Fund 002: Measure S Fund 3333333333
Fund 006: Fire Facility Acquisition 3333
Fund 165: Affordable Housing 33
Fund 170: Measure A 33
Fund 190: Temecula Community Svcs-Citywide Operations 33333333 Fund 191: Service Level B - Streetlight Replacement 3333 Fund 192: Service Level B - Street Lighting 3333
Fund 194: Service Level D - Refuse and Recycling 33 Fund 195: Service Level R - Road Maintenance 3333
Fund 196: Service Level L - Harveston Lake Park Maint.3333 Fund 197: Library 3333
Fund 198: Public Art 333333
Funds 501-530: Service Level C - Landscape/Slope Maint.3333 Fund 210: Capital Improvement Program 3333333333
Non-Major Funds
Fund 100: Gas Tax 3333
Fund 102: Road Maintenance Rehab. Account (RMRA)3333 Fund 103: Street Maintenance 3333
Fund 105: NPDES In Lieu Fees 3333
Fund 106: Uptown Temecula New Streets In Lieu Fees 3333 Fund 120: Development Impact Fees (DIF)3333
Fund 125: Public, Education & Government (PEG) Fees 33 Fund 140: Community Development Block Grant 333333
Fund 145: Temecula Energy Efficiency Asset Mgmt 3333 Fund 150: AB 2766 Motor Vehicle Subvention 33 33
Fund 160: Supplemental Law Enforcement Services 33
Fund 380: Debt Service 3333
Fund 300: Insurance 3333333333
Fund 305: Workers' Compensation 3333333333
Fund 310: Vehicles and Equipment 3333333333
Fund 320: Information Technology 3333333333
Fund 325: Technology Replacement 3333333333
Fund 330: Support Services 3333333333
Fund 335: Support Services Replacement 3333333333
Fund 340: Facilities 33 33 33 33 33
Fund 350: Facilities Replacement 3333333333
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Budget Process
BUDGET PROCESS
The annual budget process begins in February of each year. The budget team, which includes the City Manager, Finance Director, Assistant Finance Director, Fiscal Services Manager and Management Analyst, reviews the fiscal policies and procedures and prepares five-year projections for the General Fund, Measure S Fund and Temecula Community Services District. The budget team uses these projections to develop spending priorities and department expenditure targets for the upcoming fiscal year.
In February, a Budget Kickoff Workshop is held with the City Manager, Department Directors, and Department Analysts. This workshop includes a briefing on the status of the current fiscal year budget, a review of the budget process calendar, the impacts of the current economic conditions, and a discussion of elements of the budget process. The budget preparation guidelines and department targets used in preparing department budget requests are distributed. Additionally in February, the City Council discusses the Budget Policies and Priorities and provides the budget team with any changes they wish to have reflected in the ensuing fiscal year.
In late February and March, Finance holds Budget Engagement Sessions with each of the City’s Boards and Commissions. Obtaining feedback from the commissions earlier on in the budget process allows staff to incorporate community and commission input and confirm budgetary priorities.
Preparation of budget requests includescomparative analysis of historic and current expenditure levels. Department revenue estimates are compiled from projectionsof activity for the upcoming fiscal year. The Executive Team, which consists of Department Directors and the City Manager, meets shortly after requests are submitted to outline and prioritize requests. This includes a review of the following:
Expenditure requests above the established department target; Requests for new equipment (greater than $5,000) or vehicles; Requests for information technology;
Personnel requests, including temporary personnel, and any proposed reclassifications.
Several tools are utilized to determine and reinforce budget priorities and guide appropriation recommendations, as diagrammed below.
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BUDGET PROCESS
During March and April, the budget team holds meetings with each department to discuss their budget requests and to obtain additional information to assist in the resolution of the requests. Following this review, department staff performs a final adjustment to their line item submissions and develops an internal Preliminary Budget to review with the City Manager.
In May, apublic City Council budget workshop isheld to receive public comment and to review the components of the Proposed
Budget and any modifications to fiscal policies, prior to formal consideration for adoption. Any changes based
on this review are incorporated prior to adoption at
the following City Council meeting, which typically
occurs in late May or early June.
All appropriations lapse at year-end, except for
those relating to grants and encumbrances
approved for carryover to the following fiscalyear.
The City Council has the legal authority to amend
the budget at any time during the fiscal year.
Budgetary controls are maintained to ensure
compliance with the budget as approved by the City
Council. Adjustments between departments or
requests for additional funding require the approval of the City Council. As referenced in the Budget Resolution, the City Manager has the authority to make changes within departmental budgets. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the department level.
The City has a formalized midyear budget review process which is used to update the appropriations and revenue projections halfway through the fiscal year. The City begins this process in December by analyzing revenue projections, service contracts, new City Council priorities, and the impacts of legislation from the State and Federal Government. This information is compiled into an updated five-year projection. In early January, departments review their individual budgets to identify any savings or to request additional funds to meet the needs of new programs or spending priorities. The result isa final balanced budget document that ensures that sufficient funding is available to meet the updated objectives and priorities for the remainder of the fiscalyear. This document is taken to the City Council for adoption in February.
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BUDGET PROCESS
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Budget Engagement Sessions
BUDGET ENGAGEMENT SESSIONS
The City of Temecula remains committed to transparent and thoughtful financial planning that reflects community priorities. As part of the Fiscal Year 2026-2027 budget engagement process, presentations were made to the Planning Commission and the Old Town Local Advisory Committee. These sessions provided Commissioners the opportunity to share feedback on emerging priorities for the City's operational and capital planning. The results of the budget engagement sessions are summarized in the following infographic. 271
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Budget Calendar
BUDGET CALENDAR
FISCAL YEAR 2026-27
Date Item Responsible Department
2/2/26 Update General Fund and TCSD Revenue & Expenditure Finance Five-Year Forecast
2/18/26 Annual Operating Budget (AOB) Kick-Off Meeting All Departments 2/18/26 Capital Improvement Program (CIP) Kick-Off Meeting All Departments 3/9/26 CIP Project and Operating Requests due All Departments 3/10/26 City Council Review of Budget Policies & Priorities City Manager/Finance 3/16-3/19/26 AOB Review Meetings All Departments
3/23/26 Preparation of Internal Service Fund Allocations Finance 3/27/26 Department Narratives for AOB due All Departments 4/1/26 Budget Engagement Session with Planning Commission Finance 4/1/26 CIP Review Meeting All Departments
4/2/26 City Manager review of Operating Requests City Manager/Finance 4/16/26 Finalize Budget Policies City Manager/Finance
4/23/26 Appendices due All Departments
5/6/26 Planning Commission review of CIP Community Development 5/11/26 Budget Engagement Session with Old Town Local Advisory Finance Committee
5/18/26 Proposed CIP and AOB Document Distribution Finance 5/19/26 Strategic Finance Ad Hoc Subcommittee Meeting City Manager/Finance 5/21/26 City Council Budget Workshop All Departments
6/9/26 City Council Meeting – Budget Adoption All Departments 272
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Five-Year Forecast
Long Range Financial Projection
LONG RANGE FINANCIAL PROJECTION
In addition to the Annual Operating Budget and Capital Improvement Program, the City of Temecula also prepares a Five-Year Financial Projection for the General Fund, Measure S Fund and Temecula Community Services District Funds. The long-range forecasts serve as a strategic planning tool to help evaluate the City’s ability to meet its long- term obligations. The benefit of long-range planning is to alert decision-makers of trends in time to implement changes, if necessary.
GENERAL FUND REVENUE
General Fund Revenue is projected by line item using a combination of known information and anticipated trends for the coming five-year period. The City’s Budget Team works in tandem with Community Development to identify future projects that could affect revenue levels, such as the addition of new housing developments and commercial establishments. The City also utilizes Sales and Property Tax consultants to assist with identifying statewide trends that may impact City revenues.
Revenue Forecasting Assumptions
x Tax revenues – projected based on recent growth trends combined with known changes in the economy, such as the addition of new businesses or hotels.
x Licenses, Permits and Service Charges – projected based on development projects for which the City has received a planning application and is actively pursuing building permits. x Intergovernmental revenues – projected based on the growth in the City’s overall assessed valuation, as this revenue source reflects Property Tax in Lieu of Vehicle License Fees. x Reimbursements – this revenue source primarily reflects the transfer of funds from the Capital Improvement Program (CIP) to reimburse the Public Works department for the administration of the CIP program. x Operating Transfers In –projected based on assumed inflationary growth factors. x Operating Transfers In –Measure S–projected based on the General Fund expenditures eligible for Measure S funding, in accordance with the Appropriation Guidelines noted in the Budget and Fiscal Policies. Public Safety personnel and equipment are the primary recipients of Measure S Transfers.
GENERAL FUND EXPENDITURES
General Fund Expenditure trends are developed using a number of economic assumptions that are applied to the category of expenditures. For Salary and Benefit projections, the City’s Budget Team reflects any anticipated changes in staffing levels, CalPERS pension contribution rates, negotiated terms from the City’s employment contracts, and Public Safety Contract projections received from the County of Riverside. Non-salary expenditure projections were targeted to remain flat compared to the prior year, with any new requests justified on a case-by- case basis.
Expenditure Forecasting Assumptions
x Salaries – projected using current employee salary levels, plus eligible merit and/or negotiated cost of living increases for the ensuing fiscal years, plus newly authorized positions, less any known decreases to authorized positions.
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LONG RANGE FINANCIAL PROJECTION
x Benefits – projected using an employer contribution pension rate of 14.6% of labor costs, plus a 3% cost of living adjustment negotiated per the City’s employment contracts. The City has pro-actively reduced the CalPERS unfunded pension liability utilizing available fund balance and monies set aside in a Section 115 Irrevocable Pension Trust. To date, a total of $52 million has been remitted to CalPERS in the form of “Additional Discretionary Payments (ADP),” which has resulted in ongoing annual savings of approximately $5 million in pension costs. An additional $9.3 million ADP is scheduled for Fiscal Year 2026-27 which will fully fund the pension liability.
x Operations and Maintenance Costs – projected utilizing recent trends, adjusted for one-time expenditures and other known anomalies, plus known contractual increases. x Internal Service Fund Allocations - projected utilizing recent trends, adjusted for one-time expenditures and other known anomalies, plus known contractual increases.
GENERAL FUND ANALYSIS
The General Fund Forecast over the coming five years is balanced, with its Reserve for Economic Uncertainty and its Secondary Reserve fully-funded in all five years. Ending Fund Balance for Fiscal Year 2026-27 is projected to be $29,750,915, of which $28,123,539 is committed to fulfilling the Fund’s reserves. A total of $477,755 of fund balance is committed to cover the costs of a Sheriff’s Deputy position funded by the Pechanga Tribe. A total of $1,149,622 in fund balance is unassigned and available for one-time appropriations.
Fiscal Year 2026-27General Fund Revenue is projected to increase 5.9% over the prior year with a total of $126,785,291.
Tax revenues are projected to increase by 23%, with the growth expected in Sales Tax (1.9%), Property Tax (4.3%), Transient Occupancy Tax (-2.0%), Measure C (0.5%), and Transfers-In from Measure S to support Public Safety, which vary from year-to-year depending on the needs of the departments.
Total Fiscal Year 2026-27 General Fund Operating Expenditures total $112,494,154, which represents a 7.8% increase over the prior fiscal year, due primarily to significant increases in Public Safety contracts with the County of Riverside.
The Sheriff Department is projected to increase by 8.0%, due mostly to the negotiated increases in the County’s labor agreements, plus the acquisition of two motorcycles due for replacement. The Fire Department is projected to increase by 7.7%, due to contractual increases reflected in the County’s contract with CalFire. 275
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Five-Year Financial Projection – General Fund
FIVE-YEAR FINANCIAL PROJECTION – GENERAL FUND
Revised % Proposed %Projected%Projected%Projected%Projected% Actuals Budget Change Budget Change Budget Change Budget Change Budget Change Budget Change Revenue:
Property Tax 11,579,752 12,375,529 6.9% 12,907,422 4.3% 13,423,719 4.0% 13,960,668 4.0% 14,519,094 4.0% 15,099,858 4.0% Sales and Use Tax 47,504,820 49,182,480 3.5% 50,186,189 2.0% 51,691,775 3.0% 53,500,987 3.5% 55,373,521 3.5% 57,311,595 3.5% Less: Sales Tax Sharing Agmt (1,649,137) (1,760,000) 6.7% (1,865,655) 6.0% (1,921,625) 3.0% (1,979,273) 3.0% (2,038,652) 3.0% (2,099,811) 3.0% Franchise Fees 4,190,577 4,100,000 -2.2% 4,100,000 0.0% 4,100,000 0.0% 4,100,000 0.0% 4,100,000 0.0% 4,100,000 0.0% Transient Occupancy Tax 4,355,559 3,920,003 -10.0% 3,841,603 -2.0% 3,918,435 2.0% 4,035,988 3.0% 4,157,068 3.0% 4,281,780 3.0% Special Tax (Measure C) 1,894,830 2,100,000 10.8% 2,110,500 0.5% 2,121,053 0.5% 2,131,658 0.5% 2,142,316 0.5% 2,153,028 0.5% Licenses, Permits and Service Charges 5,632,840 7,040,176 25.0% 7,175,280 1.9% 7,315,556 2.0% 7,458,606 2.0% 7,604,484 2.0% 7,753,247 2.0% Fines and Forfeitures 407,648 424,159 4.1% 467,627 10.2% 472,303 1.0% 477,026 1.0% 481,797 1.0% 486,615 1.0% Use of Money and Property 2,716,088 2,024,115 -25.5% 2,024,198 0.0% 2,044,440 1.0% 2,064,884 1.0% 2,085,533 1.0% 2,106,389 1.0% Intergovernmental Revenues 11,334,094 11,960,224 5.5% 12,373,457 3.5% 12,846,672 3.8% 13,355,405 4.0% 13,884,436 4.0% 14,434,576 4.0% Reimbursements 4,809,755 6,996,498 45.5% 5,772,969 -17.5% 5,952,632 3.1% 5,219,592 -12.3% 5,416,483 3.8% 5,621,672 3.8% Miscellaneous 523,090 288,295 -44.9%206,609 -28.3%208,675 1.0%210,762 1.0%212,869 1.0%214,998 1.0% Subtotal - Operating Revenues 93,299,918 98,536,687 5.6% 99,300,198 0.8% 102,173,635 2.9% 104,536,302 2.3% 107,938,950 3.3% 111,463,945 3.3% Operating Transfers In - Gas Tax/SLESF/PARS/CRP/Fire Facility 8,619,524 14,557,929 68.9% 3,612,514 -75.2% 3,679,094 1.8% 3,747,006 1.8% 3,816,276 1.8% 3,886,932 1.9% Operating Transfers In - Measure S 5,995,925 6,496,605 8.4% 23,872,579 267.5% 13,206,716 -44.7% 14,425,859 9.2% 15,778,874 9.4% 16,165,545 2.5% Total Revenues & Transfers In 107,915,367 119,706,013 10.9% 126,785,291 5.9% 119,059,445 -6.1% 122,709,168 3.1% 127,534,100 3.9% 131,516,4223.1% Prior Version (FY25-26 Mid-Year) 107,915,367 119,637,935 120,903,667 118,287,368 120,776,953 124,646,175 n/a Expenditures by Dept:
City Council 663,370 754,919 13.8% 736,167 -2.5% 749,349 1.8% 771,891 3.0% 793,090 2.7% 814,885 2.7% Community Support 125,000 115,000 -8.0% 190,000 65.2% 190,000 0.0% 190,000 0.0% 190,000 0.0% 190,000 0.0% City Manager 2,586,337 2,908,135 12.4% 2,665,325 -8.3% 2,705,463 1.5% 2,801,173 3.5% 2,882,777 2.9% 2,966,781 2.9% Economic Development 1,910,221 1,956,792 2.4% 1,867,086 -4.6% 1,897,198 1.6% 1,958,807 3.2% 2,012,878 2.8% 2,068,477 2.8% Emergency Management 654,708 763,398 16.6% 924,359 21.1% 762,677 -17.5% 784,909 2.9% 805,940 2.7% 827,552 2.7% City Clerk 1,764,400 1,607,220 -8.9% 1,722,556 7.2% 1,749,998 1.6% 1,808,134 3.3% 1,858,937 2.8% 1,911,194 2.8% City Attorney 887,250 815,000 -8.1% 950,000 16.6% 969,000 2.0% 988,380 2.0% 1,008,148 2.0% 1,028,311 2.0% Finance 4,078,831 4,511,191 10.6% 4,422,108 -2.0% 4,487,831 1.5% 4,648,851 3.6% 4,785,439 2.9% 4,926,067 2.9% Human Resources 2,227,353 2,931,464 31.6% 2,722,071 -7.1% 2,766,701 1.6% 2,853,017 3.1% 2,929,124 2.7% 3,007,324 2.7% Planning 3,175,766 3,875,128 22.0% 3,512,542 -9.4% 3,568,917 1.6% 3,687,202 3.3% 3,791,066 2.8% 3,897,910 2.8% Building & Safety 4,630,844 5,140,206 11.0% 5,492,263 6.8% 5,577,783 1.6% 5,767,732 3.4% 5,931,935 2.8% 6,100,887 2.8% Land Development 2,122,077 2,264,555 6.7% 2,706,720 19.5% 2,747,408 1.5% 2,846,588 3.6% 2,931,446 3.0% 3,018,840 3.0% Public Works 7,616,645 8,836,075 16.0% 8,952,245 1.3% 9,107,114 1.7% 9,379,060 3.0% 9,627,439 2.6% 9,882,610 2.7% CIP Admin 3,246,939 3,442,363 6.0% 2,967,104 -13.8% 3,010,604 1.5% 3,120,778 3.7% 3,213,881 3.0% 3,309,766 3.0% Parks Maintenance 6,139,543 6,489,790 5.7%6,558,739 1.1% 6,679,328 1.8% 6,849,505 2.5% 7,010,302 2.3% 7,175,030 2.3% Sheriff 42,927,265 47,597,381 10.9% 51,423,077 8.0% 54,004,515 5.0% 56,598,555 4.8% 59,382,187 4.9% 62,306,879 4.9% Fire 8,383,534 12,671,544 51.1% 13,649,632 7.7% 14,065,582 3.0% 15,051,964 7.0% 16,284,313 8.2% 17,371,871 6.7% Animal Control 410,427 520,815 26.9% 463,524 -11.0% 468,159 1.0% 472,841 1.0% 477,569 1.0% 482,345 1.0% Non-Departmental 1,464,366 627,500 -57.1% 568,636 -9.4% 373,509 -34.3% 378,539 1.3% 383,732 1.4% 389,094 1.4% Projected Pension UAL Savings (3,477,724) 0.0%
Total Expenditures 95,014,876 104,350,751 9.8% 112,494,154 7.8% 115,881,137 3.0% 120,957,923 4.4% 126,300,202 4.4% 131,675,824 4.3% Prior Version (FY25-26 Mid-Year) 95,014,876 104,503,936 111,027,975 114,295,435 119,064,683 124,740,193 n/a Revenue Over Expenditures 12,900,491 15,355,262 14,291,137 3,178,308 1,751,244 1,233,899 (159,402) FY 30-31FY 25-26 FY 29-30FY 28-29FY 27-28FY 24-25 FY 26-27 276
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
56 | Annual Operating Budget
FIVE-YEAR FINANCIAL PROJECTION – GENERAL FUND
Revised % Proposed %Projected%Projected%Projected%Projected% Actuals Budget Change Budget Change Budget Change Budget Change Budget Change Budget Change Transfers Out and One Time Payments:
Community Reinvestment Program (80,000)
Transfer to Capital Improvement Fund (32,219) (1,953,134) - - - - - - I-15 Congestion Relief (32,219) (270,275)
- General Plan Update (1,682,859)
Fire Facility Acquistion Fund (2,000,000) (1,000,000) (1,000,000) (1,000,000) Insurance Fund Reserve (1,172,672) -
Workers' Compensation Fund Reserve (436,678) -
CalPERS Unfunded Liability Paydown (7,913,492) (22,267,833) (9,349,256) - - - - Section 115 Pension Trust - - (7,500,000) - - - - Total Transfers Out/One-Time Pmts (9,555,061) (26,300,967) (17,849,256) (1,000,000) (1,000,000) - - Revenues Over/(Under) Expenditures 3,345,430 (10,945,705) (3,558,119) 2,178,308 751,244 1,233,899 (159,402) Beginning Fund Balance 40,909,309 44,254,739 33,309,034 29,750,915 31,929,224 32,680,468 33,914,367 Ending Fund Balance 44,254,739 33,309,034 29,750,915 31,929,224 32,680,468 33,914,367 33,754,965 Prior Version (FY25-26 Mid-Year) 44,254,739 33,167,771 32,694,208 35,686,140 36,398,410 36,304,393 n/a Desired Reserve Balance (25%) 23,753,719 26,087,688 28,123,539 28,970,284 30,239,481 31,575,050 32,918,956 Reserve Balance 23,753,719 26,087,688 28,123,539 28,970,284 30,239,481 31,575,050 32,918,956 % Funded 100% 100% 100% 100% 100% 100% 100%
Fund Balance Components
Committed to:
Economic Uncertainty (20%) 19,002,975 20,870,150 22,498,831 23,176,227 24,191,585 25,260,040 26,335,165 Secondary Reserve (5%) 4,750,744 5,217,538 5,624,708 5,794,057 6,047,896 6,315,010 6,583,791 Pechanga IGA 449,171 446,498 477,755 501,642 526,719 553,049 580,701 Assigned to:
Capital Projects 1,953,134 - - - - - - Unassigned:18,098,715 6,774,849 1,149,622 2,457,297 1,914,268 1,786,268 255,308 Total Fund Balance as of 6/30 44,254,739 33,309,034 29,750,915 31,929,224 32,680,468 33,914,367 33,754,965 19% 6% 1% 2% 2% 1% 0%
FY 30-31
Unassigned Fund Balance as % of Op. Exp.
FY 25-26 FY 29-30FY 28-29FY 27-28FY 24-25 FY 26-27
277
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 57
Five-Year Revenue Projection – General Fund
FIVE-YEAR REVENUE PROJECTION – GENERAL FUND
FY 24-25 FY 25-26 % Chg FY 26-27 % Chg FY 27-28 % Chg FY 28-29 % Chg FY 29-30 % Chg FY 30-31 % Chg Actuals Revised
From
Prior Yr Proposed
From
Prior Yr Projection
From
Prior Yr Projection
From
Prior Yr Projection
From
Prior Yr Projection
From
Prior Yr
PLANNING 504,010 912,704 81.1% 798,358 -12.5% 814,325 2.0% 830,612 2.0% 847,224 2.0% 864,168 2.0% BUILDING 2,261,758 2,214,845 -2.1% 2,708,712 22.3% 2,762,886 2.0% 2,818,144 2.0% 2,874,507 2.0% 2,931,997 2.0% LAND DEVELOPMENT 1,294,871 2,290,914 76.9% 2,185,731 -4.6% 2,229,446 2.0% 2,274,035 2.0% 2,319,516 2.0% 2,365,906 2.0% PUBLIC WORKS 700 24,600 3414.3% 24,837 1.0% 25,085 1.0% 25,336 1.0% 25,590 1.0% 25,845 1.0%
PARKS & FACILITIES MAINTENANCE
Special Tax (Measure C) 1,894,830 2,100,000 10.8% 2,110,500 0.5% 2,121,053 0.5% 2,131,658 0.5% 2,142,316 0.5% 2,153,028 0.5% Lease Income 85,187 88,267 3.6% 93,732 6.2% 94,669 1.0% 95,616 1.0% 96,572 1.0% 97,538 1.0% Other 10,116 7,815 -22.7% 5,810 -25.7% 5,868 1.0% 5,927 1.0% 5,986 1.0% 6,046 1.0% POLICE
Parking Citations 95,581 109,159 14.2% 106,614 -2.3% 107,680 1.0% 108,757 1.0% 109,845 1.0% 110,943 1.0% Miscellaneous 175,960 139,811 -20.5% 112,978 -19.2% 114,108 1.0% 115,249 1.0% 116,401 1.0% 117,565 1.0% Vehicle Impound Fees 137,554 125,000 -9.1% 125,000 0.0% 126,250 1.0% 127,513 1.0% 128,788 1.0% 130,076 1.0% Reimbursements 118,643 180,000 51.7% 160,715 -10.7% 162,322 1.0% 163,945 1.0% 165,585 1.0% 167,241 1.0% FIRE
Various 1,284,754 1,302,772 1.4% 1,159,574 -11.0% 1,182,765 2.0% 1,206,421 2.0% 1,230,549 2.0% 1,255,160 2.0% Grants 61,911 38,032 -38.6% 16,000 -57.9% 0 -100.0% 0 0.0% 0 0.0% 0 0.0%
NON-DEPARTMENTAL
Residual RPTTF Distribution 279,534 280,000 0.2% 291,200 4.0% 302,848 4.0% 314,962 4.0% 327,560 4.0% 340,663 4.0% Property Tax (Secured) 9,636,401 10,563,581 9.6% 11,022,785 4.3% 11,463,696 4.0% 11,922,244 4.0% 12,399,134 4.0% 12,895,099 4.0% Property Tax (Unsecured) 503,306 536,966 6.7% 558,444 4.0% 580,782 4.0% 604,013 4.0% 628,174 4.0% 653,300 4.0% Supplemental Tax-AB 2345 335,698 274,482 -18.2% 285,461 4.0% 296,879 4.0% 308,755 4.0% 321,105 4.0% 333,949 4.0% Property Transfer Tax 758,140 650,000 -14.3% 676,000 4.0% 703,040 4.0% 731,162 4.0% 760,408 4.0% 790,824 4.0% Franchise Fees 4,190,577 4,100,000 -2.2% 4,100,000 0.0% 4,100,000 0.0% 4,100,000 0.0% 4,100,000 0.0% 4,100,000 0.0% Transient Occupancy Tax 4,355,559 3,920,003 -10.0% 3,841,603 -2.0% 3,918,435 2.0% 4,035,988 3.0% 4,157,068 3.0% 4,281,780 3.0% Sales and Use Tax - State of Calif. 47,504,820 49,182,480 3.5% 50,186,189 2.0% 51,691,775 3.0% 53,500,987 3.5% 55,373,521 3.5% 57,311,595 3.5% Less: Sales Tax Sharing Agreement (1,649,137) (1,760,000) 6.7% (1,865,655) 6.0% (1,921,625) 3.0% (1,979,273) 3.0% (2,038,652) 3.0% (2,099,811) 3.0% FEMA Grants 125,321 40,000 -68.1% 0 -100.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Homeowner Exemption 66,673 70,500 5.7% 73,532 4.3% 76,473 4.0% 79,532 4.0% 82,713 4.0% 86,022 4.0% MVLF- property tax in lieu 11,099,170 11,754,429 5.9% 12,188,015 3.7% 12,675,536 4.0% 13,182,557 4.0% 13,709,859 4.0% 14,258,254 4.0% Motor Vehicle in Lieu- State 173,014 167,763 -3.0% 169,442 1.0% 171,136 1.0% 172,848 1.0% 174,576 1.0% 176,322 1.0% Vehicle Code Fines 174,513 190,000 8.9% 236,013 24.2% 238,373 1.0% 240,757 1.0% 243,164 1.0% 245,596 1.0% 278
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
58 | Annual Operating Budget
FIVE-YEAR REVENUE PROJECTION – GENERAL
FY 24-25 FY 25-26 % Chg FY 26-27 % Chg FY 27-28 % Chg FY 28-29 % Chg FY 29-30 % Chg FY 30-31 % Chg Actuals Revised
From
Prior Yr Proposed
From
Prior Yr Projection
From
Prior Yr Projection
From
Prior Yr Projection
From
Prior Yr Projection
From
Prior Yr
Business Licenses 276,631 286,526 3.6% 292,257 2.0% 295,180 1.0% 298,131 1.0% 301,113 1.0% 304,124 1.0% Miscellaneous 208,497 146,299 -29.8% 93,631 -36.0% 94,567 1.0% 95,513 1.0% 96,468 1.0% 97,433 1.0% Right of Way Advertising 0 2,185 0.0% 0 -100.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Investment Interest 2,095,753 1,757,567 -16.1% 1,757,567 0.0% 1,775,143 1.0% 1,792,894 1.0% 1,810,823 1.0% 1,828,931 1.0% Lease Income 86,004 178,281 107.3% 165,323 -7.3% 166,976 1.0% 168,646 1.0% 170,332 1.0% 172,036 1.0% Reimbursements - Miscellaneous 206,098 80,000 -61.2% 81,600 2.0% 81,600 0.0% 81,600 0.0% 81,600 0.0% 81,600 0.0% Reimbursements - Pechanga IGA 410,208 2,273,557 454.2% 1,396,498 -38.6% 1,427,755 2.2% 501,642 -64.9% 526,719 5.0% 553,049 5.0% Reimbursements - Capital Improvement Program 3,038,031 3,098,127 2.0% 2,790,884 -9.9% 2,902,519 4.0% 3,018,620 4.0% 3,139,365 4.0% 3,264,9394.0% Operating Transfer In - Measure S Fund 5,995,925 6,496,605 8.4% 23,872,579 267.5% 13,206,716 -44.7% 14,425,859 9.2% 15,778,874 9.4% 16,165,545 2.5% Operating Transfer In - Gas Tax 3,142,939 3,269,427 4.0% 3,329,012 1.8% 3,395,592 2.0% 3,463,504 2.0% 3,532,774 2.0% 3,603,430 2.0% Operating Transfer In - COPS 334,997 283,502 -15.4% 283,502 0.0% 283,502 0.0% 283,502 0.0% 283,502 0.0% 283,502 0.0% Operating Transfer In - CRP Fund 1,000,000 0.0% -100.0% 0.0% 0.0% 0.0% 0.0% Operating Transfer In - Fire Facility Fund 5,000,000 0.0% -100.0% 0.0% 0.0% 0.0% 0.0% Operating Transfer In - PARS Trust 5,000,000 5,005,000 -100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Interest Income - Leases 89,409 0 -100.0% 7,576 0.0% 7,652 1.0% 7,728 1.0% 7,806 1.0% 7,884 1.0% Reimbursements - Services CFDs 746,925 1,166,748 56.2% 1,262,366 8.2% 1,297,220 2.8% 1,372,258 5.8% 1,421,372 3.6% 1,472,683 3.6% State Mandated Cost Reimbursement 133,155 127,466 -4.3% 50,000 -60.8% 50,000 0.0% 50,000 0.0% 50,000 0.0% 50,000 0.0% AB1379 Collection State Imposed $4 Fee 31,374 30,600 -2.5% 30,906 1.0% 31,215 1.0% 31,527 1.0% 31,842 1.0% 32,161 1.0% Contributions 141,587 -100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Financing Sources-SBITA 138,633 -100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Change in Fair Value of Investments 359,735 -100.0% 0.0% 0.0% 0.0% 0.0% 0.0% TOTAL 107,915,367 119,706,013 10.9% 126,785,291 5.9% 119,059,445 -6.1% 122,709,168 3.1% 127,534,100 3.9% 131,516,422 3.1% 279
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 59
Five-Year Expenditure Projection – General Fund
FIVE-YEAR EXPENDITURE PROJECTION – GENERAL FUND
24-25 25-26 % 26-27 % 27-28 % 28-29 % 29-30 % 30-31 %
Actuals Revised Change Proposed Change Projection Change Projection Change Projection Change Projection Change City Council: Salaries 163,330 219,665 34.5% 230,002 4.7% 233,061 1.3% 242,034 3.9% 249,295 3.0% 256,774 3.0% O&M 179,236 204,111 13.9% 188,206 -7.8% 191,970 2.0% 195,810 2.0% 199,726 2.0% 203,720 2.0% ISF 320,804 331,143 3.2% 317,959 -4.0% 324,318 2.0% 334,048 3.0% 344,069 3.0% 354,391 3.0% 663,370 754,919 13.8% 736,167 -2.5%749,349 1.8%771,891 3.0%793,090 2.7%814,885 2.7% Community Support 125,000 115,000 -8.0% 190,000 65.2%190,000 0.0%190,000 0.0%190,000 0.0%190,000 0.0% City Manager: Salaries 1,948,223 2,057,408 5.6% 1,965,463 -4.5% 1,991,604 1.3% 2,068,280 3.9% 2,130,329 3.0% 2,194,239 3.0% Project Salaries 102,000 0.0% - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 179,380 246,572 37.5% 233,619 -5.3% 238,291 2.0% 243,057 2.0% 247,918 2.0% 252,877 2.0% ISF 458,734 502,155 9.5% 466,243 -7.2% 475,568 2.0% 489,835 3.0% 504,530 3.0% 519,666 3.0% 2,586,337 2,908,135 12.4% 2,665,325 -8.3%2,705,463 1.5%2,801,173 3.5%2,882,777 2.9%2,966,781 2.9% Economic Dev. Salaries 1,023,378 1,065,282 4.1% 1,057,166 -0.8% 1,071,226 1.3% 1,112,469 3.8% 1,145,843 3.0% 1,180,218 3.0% Project Salaries 20,144 21,762 8.0% 21,857 0.4% 22,148 1.3% 23,000 3.9% 23,690 3.0% 24,401 3.0% O&M 505,503 481,095 -4.8% 451,100 -6.2% 460,122 2.0% 469,324 2.0% 478,711 2.0% 488,285 2.0% ISF 361,196 388,653 7.6% 336,963 -13.3% 343,702 2.0% 354,013 3.0% 364,634 3.0% 375,573 3.0% 1,910,221 1,956,792 2.4% 1,867,086 -4.6%1,897,198 1.6%1,958,807 3.2%2,012,878 2.8%2,068,477 2.8% Emerg Mgmt Salaries 186,222 209,207 12.3% 211,022 0.9% 213,829 1.3% 222,061 3.9% 228,723 3.0% 235,585 3.0% Project Salaries - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 199,313 235,420 18.1% 241,809 2.7% 246,645 2.0% 251,578 2.0% 256,610 2.0% 261,742 2.0% Capital Outlay 4,960 5,000 0.8% 175,250 3405.0% -100.0% 0.0% 0.0% 0.0% ISF 264,213 313,771 18.8% 296,278 -5.6% 302,204 2.0% 311,270 3.0% 320,608 3.0% 330,226 3.0% 654,708 763,398 16.6% 924,359 21.1%762,677 -17.5%784,909 2.9%805,940 2.7%827,552 2.7% City Clerk: Salaries 987,074 1,080,496 9.5% 1,046,097 -3.2% 1,060,010 1.3% 1,100,820 3.8% 1,133,845 3.0% 1,167,860 3.0% Project Salaries 9,450 2,700 -71.4% - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 412,419 202,303 -50.9% 330,791 63.5% 337,407 2.0% 344,155 2.0% 351,038 2.0% 358,059 2.0% ISF 355,457 321,721 -9.5% 345,668 7.4% 352,581 2.0% 363,159 3.0% 374,054 3.0% 385,275 3.0% 1,764,400 1,607,220 -8.9% 1,722,556 7.2%1,749,998 1.6%1,808,134 3.3%1,858,937 2.8%1,911,194 2.8% City Attorney (Contract)887,250 815,000 -8.1% 950,000 16.6%969,000 2.0%988,380 2.0%1,008,148 2.0%1,028,311 2.0% 280
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
60 | Annual Operating Budget
FIVE-YEAR EXPENDITURE PROJECTION – GENERAL FUND
24-25 25-26 % 26-27 % 27-28 % 28-29 % 29-30 % 30-31 %
Actuals Revised Change Proposed Change Projection Change Projection Change Projection Change Projection Change Finance Salaries 3,079,449 3,234,760 5.0% 3,190,033 -1.4% 3,232,460 1.3% 3,356,910 3.9% 3,457,617 3.0% 3,561,346 3.0% Project Salaries 2,360 176,326 7371.4% 200,819 13.9% 203,490 1.3% 211,324 3.9% 217,664 3.0% 224,194 3.0% O&M 258,378 279,925 8.3% 276,593 -1.2% 282,125 2.0% 287,767 2.0% 293,523 2.0% 299,393 2.0% Capital Outlay - 33,000 0.0% - ISF 738,644 787,180 6.6% 754,663 -4.1% 769,756 2.0% 792,849 3.0% 816,634 3.0% 841,133 3.0% 4,078,831 4,511,191 10.6% 4,422,108 -2.0%4,487,831 1.5%4,648,851 3.6%4,785,439 2.9%4,926,067 2.9% HR Salaries 1,246,127 1,136,730 -8.8% 1,464,438 28.8% 1,483,915 1.3% 1,541,046 3.8% 1,587,277 3.0% 1,634,895 3.0% Project Salaries 9,030 - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 712,544 1,457,028 104.5% 911,570 -37.4% 929,801 2.0% 948,397 2.0% 967,365 2.0% 986,713 2.0% Capital Outlay - 0.0% -
ISF 259,652 337,706 30.1% 346,063 2.5% 352,984 2.0% 363,574 3.0% 374,481 3.0% 385,715 3.0% 2,227,353 2,931,464 31.6% 2,722,071 -7.1%2,766,701 1.6%2,853,017 3.1%2,929,124 2.7%3,007,324 2.7% Planning: Salaries 1,911,552 2,236,234 17.0% 2,041,386 -8.7% 2,068,536 1.3% 2,148,175 3.9% 2,212,620 3.0% 2,278,999 3.0% Project Salaries 55,854 10,500 -81.2% 29,616 182.1% 30,010 1.3% 31,165 3.9% 32,100 3.0% 33,063 3.0% O&M 417,323 803,439 92.5% 649,035 -19.2% 662,016 2.0% 675,256 2.0% 688,761 2.0% 702,536 2.0% ISF 791,037 824,955 4.3% 792,505 -3.9% 808,355 2.0%832,606 3.0% 857,584 3.0% 883,311 3.0% Capital Outlay 0.0% -
3,175,766 3,875,128 22.0% 3,512,542 -9.4%3,568,917 1.6%3,687,202 3.3%3,791,066 2.8%3,897,910 2.8% Code Enforcement Salaries 951,653 884,173 -7.1% 1,213,151 37.2% 1,229,286 1.3% 1,276,613 3.9% 1,314,912 3.0% 1,354,359 3.0% Project Salaries - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 132,326 291,360 120.2% 276,360 -5.1% 281,887 2.0% 287,525 2.0% 293,275 2.0% 299,141 2.0% Capital Outlay - - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% ISF 286,831 370,952 29.3% 412,991 11.3% 421,251 2.0% 433,888 3.0% 446,905 3.0% 460,312 3.0% 1,370,810 1,546,485 12.8% 1,902,502 23.0%1,932,424 1.6%1,998,027 3.4%2,055,092 2.9%2,113,812 2.9% Building & Safety Salaries 2,368,568 2,524,496 6.6% 2,417,475 -4.2% 2,449,627 1.3% 2,543,938 3.9% 2,620,256 3.0% 2,698,864 3.0% Project Salaries - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 278,975 422,246 51.4% 572,246 35.5% 583,691 2.0% 595,365 2.0% 607,272 2.0% 619,417 2.0% Capital Outlay - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% ISF 612,491 646,979 5.6% 600,040 -7.3% 612,041 2.0% 630,402 3.0% 649,314 3.0% 668,794 3.0% 3,260,034 3,593,721 10.2% 3,589,761 -0.1%3,645,359 1.5%3,769,705 3.4%3,876,842 2.8%3,987,075 2.8% 281
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 61
FIVE-YEAR EXPENDITURE PROJECTION – GENERAL FUND
24-25 25-26 % 26-27 % 27-28 % 28-29 % 29-30 % 30-31 %
Actuals Revised Change Proposed Change Projection Change Projection Change Projection Change Projection Change Land Development: Salaries 1,469,026 1,537,167 4.6% 2,006,977 30.6% 2,033,670 1.3% 2,111,966 3.9% 2,175,325 3.0% 2,240,585 3.0% Project Salaries 19,324 23,425 21.2% - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 81,792 97,076 18.7% 51,800 -46.6% 52,836 2.0% 53,893 2.0% 54,971 2.0% 56,070 2.0% Capital Outlay - - 0.0% - 0.0% 0.0% 0.0% 0.0% 0.0% ISF 551,935 606,887 10.0% 647,943 6.8% 660,902 2.0% 680,729 3.0% 701,151 3.0% 722,185 3.0% 2,122,077 2,264,555 6.7% 2,706,720 19.5%2,747,408 1.5%2,846,588 3.6%2,931,446 3.0%3,018,840 3.0% Public Works: Salaries 3,140,812 3,437,163 9.4% 3,539,254 3.0% 3,586,326 1.3% 3,724,400 3.9% 3,836,132 3.0% 3,951,216 3.0% Project Salaries 29,646 71,056 139.7% 69,142 -2.7% 70,062 1.3% 72,759 3.9% 74,942 3.0% 77,190 3.0% O&M 2,457,831 3,282,921 33.6% 3,171,172 -3.4% 3,234,595 2.0% 3,299,287 2.0% 3,365,273 2.0% 3,432,579 2.0% Capital Outlay - - 0.0% 0.0% - 0.0% - 0.0% - 0.0% - 0.0% ISF 1,988,356 2,044,935 2.8% 2,172,677 6.2% 2,216,131 2.0% 2,282,614 3.0% 2,351,093 3.0% 2,421,626 3.0% 7,616,645 8,836,075 16.0% 8,952,245 1.3%9,107,114 1.7%9,379,060 3.0%9,627,439 2.6%9,882,610 2.7% CIP Admin: Salaries 2,632,454 2,777,958 5.5% 2,364,443 -14.9% 2,395,890 1.3% 2,488,132 3.9% 2,562,776 3.0% 2,639,659 3.0% Project Salaries - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% O&M 30,529 49,748 63.0% 50,000 0.5% 51,000 2.0% 52,020 2.0% 53,060 2.0% 54,122 2.0% Capital Outlay 33,395 - -100.0% - 0.0% ISF 550,561 614,657 11.6% 552,661 -10.1% 563,714 2.0% 580,626 3.0% 598,044 3.0% 615,986 3.0% 3,246,939 3,442,363 6.0% 2,967,104 -13.8%3,010,604 1.5%3,120,778 3.7%3,213,881 3.0%3,309,766 3.0% Parks Maint Salaries 1,376,562 1,493,350 8.5% 1,453,409 -2.7% 1,472,739 1.3% 1,529,440 3.9% 1,575,323 3.0% 1,622,583 3.0% Project Salaries 76,865 122,105 58.9% 126,557 3.6% 128,240 1.3% 133,177 3.9% 137,173 3.0% 141,288 3.0% O&M 4,151,329 4,199,054 1.1% 4,295,227 2.3% 4,381,132 2.0% 4,468,754 2.0% 4,558,129 2.0% 4,649,292 2.0% Capital Outlay 96,451 - -100.0% - 0.0% 0.0% 0.0% 0.0% 0.0% ISF 438,336 675,281 54.1% 683,546 1.2% 697,217 2.0% 718,133 3.0% 739,677 3.0% 761,868 3.0% 6,139,543 6,489,790 5.7% 6,558,739 1.1%6,679,328 1.8%6,849,505 2.5%7,010,302 2.3%7,175,030 2.3% Police: Salaries 2,719 - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% Project Salaries 26,317 17,512 -33.5% - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% Contract 40,781,766 43,959,855 7.8% 48,735,746 10.9% 51,256,977 5.2% 53,782,091 4.9% 56,494,875 5.0% 59,346,740 5.0% O&M-contract 702,933 1,708,464 143.0% 803,262 -53.0% 827,488 3.0% 852,514 3.0% 878,369 3.0% 905,080 3.0% Capital Outlay - 199,914 0.0% 85,000 -57.5% 85,000 0.0% 85,000 0.0% 85,000 0.0% 85,000 0.0% ISF 567,015 678,823 19.7% 705,738 4.0% 719,853 2.0% 741,448 3.0% 763,692 3.0% 786,603 3.0% O&M 846,515 1,032,813 22.0% 1,093,331 5.9% 1,115,197 2.0% 1,137,501 2.0% 1,160,251 2.0% 1,183,456 2.0% 42,927,265 47,597,381 10.9% 51,423,077 8.0%54,004,515 5.0%56,598,555 4.8%59,382,187 4.9%62,306,879 4.9% 282
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
62 | Annual Operating Budget
FIVE-YEAR EXPENDITURE PROJECTION – GENERAL FUND
24-25 25-26 % 26-27 % 27-28 % 28-29 % 29-30 % 30-31 %
Actuals Revised Change Proposed Change Projection Change Projection Change Projection Change Projection Change Fire Capital outlay - 25,065 0.0% - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% Salaries 627,941 773,731 23.2% 787,490 1.8% 797,964 1.3% 828,685 3.9% 853,546 3.0% 879,152 3.0% Project Salaries 28,265 20,000 -29.2% - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% Contract Fire Suppression 5,244,559 8,416,234 60.5% 9,443,010 12.2% 10,235,742 8.4% 11,072,932 8.2% 12,156,866 9.8% 13,089,947 7.7% Contract Fire Prevention 1,061,075 1,555,818 46.6% 1,555,818 0.0% 1,633,609 5.0% 1,715,289 5.0% 1,801,054 5.0% 1,891,107 5.0% O&M 721,697 1,070,655 48.4% 998,203 -6.8% 515,855 -48.3% 526,172 2.0% 536,695 2.0% 547,429 2.0% ISF 699,997 810,042 15.7% 865,111 6.8% 882,413 2.0% 908,886 3.0% 936,152 3.0% 964,237 3.0% 8,383,534 12,671,544 51.1% 13,649,632 7.7%14,065,582 3.0%15,051,964 7.0%16,284,313 8.2%17,371,871 6.7% Animal Control 342,427 380,764 11.2% 325,797 -14.4% 329,055 1.0% 332,346 1.0% 335,669 1.0% 339,026 1.0% Animal Control - Debt Service 68,000 140,051 106.0% 137,727 -1.7% 139,104 1.0% 140,495 1.0% 141,900 1.0% 143,319 1.0% 410,427 520,815 26.9% 463,524 -11.0% 468,159 1.0% 472,841 1.0% 477,569 1.0% 482,345 1.0% Non-Departmental:
Retiree Medical Contribution 1,172,649 - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% PERs Replacement Benefit 87,817 91,800 4.5% 93,636 2.0% 95,509 2.0% 97,419 2.0% 99,367 2.0% 101,355 2.0% Projected Pension UAL Savings (3,477,724) 0.0% -100.0% - 0.0% - 0.0% - 0.0% - 0.0% Capital Project O&M Costs - 0.0% 0.0% - 0.0% - 0.0% - 0.0% - 0.0% Staffing Continuity Reserve 442,100 0.0% 400,000 -9.5% 200,000 -50.0% 200,000 0.0% 200,000 0.0% 200,000 0.0% Capital Outlay-SBITA 138,633 - -100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Prop. Tax Admin 65,267 93,600 43.4% 75,000 -19.9% 78,000 4.0% 81,120 4.0% 84,365 4.0% 87,739 4.0% 1,464,366 (2,850,224) -294.6% 568,636 -120.0%373,509 -34.3%378,539 1.3%383,732 1.4%389,094 1.4% Total General Fund Expenditures 95,014,876 104,350,751 9.8% 112,494,154 7.8% 115,881,137 3.0% 120,957,923 4.4% 126,300,202 4.4% 131,675,824 4.3% Summary by Category
Salaries/Benefits 23,115,090 24,667,820 6.7% 24,987,806 1.3% 25,320,144 1.3% 26,294,969 3.8% 27,083,818 3.0% 27,896,333 3.0% Pension UAL Savin 0 -3,477,724 0 -100.0% 0 0 0 0
Project Salaries 277,255 567,386 104.6% 447,991 -21.0% 453,949 1.3% 471,426 3.8% 485,569 3.0% 500,136 3.0% O&M 12,987,767 15,806,579 21.7% 15,394,586 -2.6% 15,191,730 -1.3% 15,487,083 1.9% 15,788,296 1.9% 16,095,486 1.9% ISF 9,245,259 10,255,840 10.9% 10,297,049 0.4% 10,502,990 2.0% 10,818,080 3.0% 11,142,622 3.0% 11,476,901 3.0% Capital Outlay 134,806 262,979 95.1% 260,250 -1.0% 85,000 -67.3% 85,000 0.0% 85,000 0.0% 85,000 0.0% Fire Contract Prev 6,305,634 9,972,052 58.1% 10,998,828 10.3% 11,869,351 7.9% 12,788,221 7.7% 13,957,920 9.1% 14,981,053 7.3% Police Contract 41,484,699 45,668,319 10.1% 49,539,008 8.5% 52,084,465 5.1% 54,634,605 4.9% 57,373,244 5.0% 60,251,820 5.0% Non-Departmenta 1,464,366 627,500 -57.1% 568,636 -9.4% 373,509 -34.3% 378,539 1.3% 383,732 1.4% 389,094 1.4% 95,014,876 104,350,751 9.8% 112,494,154 7.8% 115,881,137 3.0% 120,957,923 4.4% 126,300,202 4.4% 131,675,824 4.3% 283
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 63
Five-Year Financial Projection –Measure S Fund
FIVE-YEAR FINANCIAL PROJECTION – MEASURE S FUND
2024-25
Actuals
2025-26
Revised
2026-27
Proposed
2027-28
Projection
2028-29
Projection
2029-30
Projection
2030-31
Projection
Revenue
Sales Tax 37,475,912 37,621,488 38,980,154 40,149,559 41,354,045 42,594,667 43,872,507 Investment Interest 2,397,423 1,728,370 1,728,370 1,780,221 1,833,628 1,888,637 1,945,296 Total Revenue 39,873,335 39,349,858 40,708,524 41,929,780 43,187,673 44,483,303 45,817,802 % Growth over Prior Year -0.3% -1.3% 1.7% 3.0% 3.0% 3.0% 3.0% Transfers Out - Operating Expenditures
Public Safety
Sheriff Staffing 4,757,194 5,178,099 5,540,561 5,817,641 6,108,606 6,414,078 6,734,886 Fire Staffing (Station 95) 977,292 1,072,490 1,083,188 1,137,347 1,194,215 1,253,926 1,316,622 Public Safety Subsidy - 17,000,000 6,000,000 7,000,000 8,000,000 8,000,000 Fire - ISF (4 Inspect. Vehicles & Ladder Truck) 170,390 152,236 152,236 152,236 20,562 5,320 5,320 IT - Citywide Security Cameras O&M 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Asset Management
Reserve Fund Contribution - Street Maintenance Fund (103) 2,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Reserve Fund Contribution - Facilities Replacement Fund (350) 2,500,000 1,250,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 General Services
TCSD Operations (subsidy) 15,864,726 14,331,992 14,675,947 14,992,340 15,621,807 16,168,295 16,732,288 Library (subsidy) 1,127,563 1,308,073 1,774,877 1,828,123 1,882,967 1,939,456 1,997,640 Public Works - Enhanced Custodial Svcs 91,049 93,780 96,594 99,492 102,476 105,551 108,717 Total Operating Expenditures 27,788,214 24,686,670 44,123,403 33,827,179 35,730,633 37,686,625 38,695,473 % Growth over Prior Year 15.1% -11.2% 28.7% -23.3% 5.6% 5.5% 2.7% Excess of Revenues Over/(Under) Operating Expenditures 12,085,121 (3,414,879) 8,102,600 7,457,040 6,796,678 7,122,330 284
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
64 | Annual Operating Budget
FIVE-YEAR FINANCIAL PROJECTION – MEASURE S FUND
2024-25
Actuals
2025-26
Revised
2026-27
Proposed
2027-28
Projection
2028-29
Projection
2029-30
Projection
2030-31
Projection
Transfers Out - Capital Improvement Program
612 ADA Transition Plan Implementation 9,193 393,694 78,660 78,660 78,660 78,660 78,660 790 Auto Mall Wayfinding Signs 67,525 667,693
768 Bike Lane and Trail Program - Great Oak Trail Lighting 352,808 793 Bike Land and Trail Program - Ronald Reagan Sports Park Trails 12,497 - 720 Bike Lane and Trail Program - Temecula Creek South Side Trail 56,126 192,161 PW23-10 Bike Lane Upgrades - Citywide 49,900
524 Cherry Street Extension and Murrieta Creek Low-Flow Crossing - 779 City Facility Security Improvements 42,754 107,246 711 Citywide Security Cameras (297,477)
Citywide Community Wildfire Protection Plan 771,000
722 Citywide Drainage Master Plan 171,188 198,165 688 Citywide Streetlight Acquisition LED Conversion (32,553) (0) 730 Community Recreation Center Renovation 216,727 499,181 205 CRC Splashpad and Shade Structures 862,619 31,889 521 Diaz Road Expansion (Rancho Cal to Cherry St) 37,289 613,642 207 Dog Park Renovation 89,514 (634)
145 Eagle Soar Splash Pad Control System Renovation 15,000 PW23-20 Empire Creek Improvements 18,594 452,355 789 Fiber Optic Communication Systems - Citywide 87,850 550 Fiber Optic Communication System Upgrades (71,097) - 697 Fire Station 73 - Gym/Garage 85,854 4,398,035 1,359,712 687 Fire Station 84 Renovations 909,210
670 Flashing Beacons and Speed Advisory Signs 38,554 - 127 Flood Control Channel Reconstruction and Repair (28) - 726 French Valley Parkway / I-15 Interchange Improvements-Phase II 40,184 429,578 200,000 728 French Valley Parkway / I-15 Interchange Improvements-Phase III 177,513 548,120 690 I-15/SR79 South Interchange Enhanced Landscaping 620,306 La Paz Road Roundabout Reconstruction 3,009,000 800,000 755 Local Roadway Safety Plan 35,000
PW23-18 Long Canyon Creek Park Restrooms 273,598 1,208,905 692 Margarita Recreation Center 40,560 95,916
285
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 65
FIVE-YEAR FINANCIAL PROJECTION – MEASURE S FUND
2024-25
Actuals
2025-26
Revised
2026-27
Proposed
2027-28
Projection
2028-29
Projection
2029-30
Projection
2030-31
Projection
Transfers Out - Capital Improvement Program
782 Mary Phillips Senior Center Enhancement and Renovation (70,694) 704 Medians & Traffic Calmining Improvements - Citywide 680,000 Mercedes Street Sidewalk 1,400,000 350,000
Mike Naggar Park Pickleball Court Conversion 200,000
648 Murrieta Creek Bridge at Overland 879,334
735 Murrieta Creek Improvements 1,208,348 125,319
785 Nicolas Road Multi-Use Trail Extension 150,000
PW24-02 North General Kearny Street Improvements 72,978 - 694 Old Town Parking Structure 405,000
780 Old Town Security Camera and Sound System Upgrade - 155 Park Restrooms Expansion, Renovations and ADA Improvements 260,481 121,519 130 Parks Improvement Program 398,782 0
PW23-09 Pavement Management Program Update 85,020 100,000 Pavement Rehabilitation Program-Winchester Road -
PW23-11 Pedestrian Ramp Upgrades - Citywide 23,279 26,671 518 Pedestrian Signal Equipment Upgrade - Citywide (92,372) - 787 Pickleball Courts 1,393,611 (1,841)
120 Playground Equipment Enhancement and Safety Surfacing 67,849 332,151 939,725 786 Rainbow Canyon Road Pavement Rehabilitation 41,070 - 791 Rancho California Road Medians 18,099 125,667 223 RRSP Hockey Rink 27,436 1,825,896
222 RRSP Skate Park 116,329 4,471,237
RRSP Trail 100,000
739 Santa Gertrudis Creek Pedestrian/Bicycle Trail Extension and Interconnect (319,984) 732 Santa Gertrudis Creek Phase II - Margarita Under-Crossing 1,758,376 - 708 Sidewalks -Citywide 507,549 115,104
766 Sidewalks -Old Town Improvement Project (299,719)
555 Sidewalks -Sixth Street Improvements -
PWSW-02 Sidewalks - Pauba Road 132,892 696,316
PW23-03 Sidewalks - Third Street 1,149 -
PW22-16 Sixth Street Improvements 685,548 149,291 286
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
66 | Annual Operating Budget
FIVE-YEAR FINANCIAL PROJECTION – MEASURE S FUND
2024-25
Actuals
2025-26
Revised
2026-27
Proposed
2027-28
Projection
2028-29
Projection
2029-30
Projection
2030-31
Projection
Transfers Out - Capital Improvement Program
141 Sports Court Resurfacing 107,840 206,427 100,000 100,000 113 Sports Field Lighting LED Conversion 1,100,500 264,083 PWSD-23 Storm Drain Pipe Lining 75,983 964,931 1,870,050 1,870,050 Temecula Creek Fencing -
NEW Temecula Duck Pond Spillway Project 1,286 - 680 Traffic Signal Equipment Enhancement Program - Citywide 85,416 1,446,424 260,000 260,000 260,000 682 Traffic Signal Installation – Citywide 131,702 427,056 605 Traffic Signal Park and Ride Access Improvements 2,706 - PW23-12 Traffic Signal - Pedestrian Signal Equipment Upgrade Phase 2 - Citywide 5,134 74,586 PW23-13 Traffic Signal - Safety Lights & Signal Communications Upgrade 220,000 Traffic Signal Fiber Optic Extension 25,515 239,485 208,150 PW22-12 Uptown Temecula Sports Park 3,347 1,366,404 Utility Undergrounding - Citywide (74,852)
PW23-06 Vail Ranch Park Restrooms 299,771 1,067,867 Total CIP Project Expenditures 10,597,215 32,687,242 4,296,247 2,308,710 438,660 2,048,710 78,660 Total Expenditures/Transfers Out 38,385,429 57,373,912 48,419,650 36,135,889 36,169,293 39,735,335 38,774,133 Excess of Revenues Over/(Under) Total Expenditures 1,487,906 (18,024,054) (7,711,126) 5,793,890 7,018,380 4,747,968 7,043,670 Fund Balance, Beginning of Year 50,449,273 51,937,179 33,913,125 26,201,999 31,995,890 39,014,269 43,762,238 Fund Balance, End of Year 51,937,179 33,913,125 26,201,999 31,995,890 39,014,269 43,762,238 50,805,907 287
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 67
Five-Year Financial Projection – Temecula Community Services District Fund FIVE-YEAR FINANCIAL PROJECTION – TEMECULA COMMUNITY SERVICES DISTRICT FUND FY24-25
Revised % Proposed % Projected % Projected % Projected % Projected % Actuals Budget Change Budget Change Budget Change Budget Change Budget Change Budget Change TCSD Program Revenues 3,303,682 2,997,259 -9.3% 3,039,166 1.4% 3,069,558 1.0% 3,100,254 1.0% 3,131,256 1.0% 3,162,569 1.0% Measure C Revenues 1,894,831 1,935,718 2.2% 1,955,075 1.0% 1,974,626 1.0% 1,994,372 1.0% 2,014,316 1.0% 2,034,459 1.0% Measure S Contribution 15,864,726 14,331,992 -9.7% 14,675,947 2.4% 14,992,340 2.2% 15,621,807 4.2% 16,168,295 3.5% 16,732,288 3.5% Total Revenues 21,063,238 19,264,970 -8.5% 19,670,188 2.1% 20,036,524 1.9% 20,716,433 3.4% 21,313,867 2.9% 21,929,316 2.9% % from Measure S 75% 74% 75% 75% 75% 76% 76%
Expenditures by Division
TCSD Operations 4,741,521 5,041,560 6.3% 4,657,516 -7.6% 4,793,051 2.9% 4,973,766 3.8% 5,147,262 3.5% 5,327,021 3.5% TCSD Maintenance 1,998,927 2,096,536 4.9% 2,024,164 -3.5% 2,057,310 1.6% 2,118,984 3.0% 2,172,888 2.5% 2,228,214 2.5% Senior & Inclusive Services 1,115,733 1,765,298 58.2% 1,718,817 -2.6% 1,742,704 1.4% 1,806,907 3.7% 1,859,520 2.9% 1,913,679 2.9% Community Rec Center Operations 1,328,013 1,200,259 -9.6% 1,248,323 4.0% 1,265,670 1.4% 1,312,302 3.7% 1,350,515 2.9% 1,389,851 2.9% Special Events 1,190,627 1,237,330 3.9% 1,058,550 -14.4% 1,077,934 1.8% 1,104,491 2.5% 1,129,387 2.3% 1,154,865 2.3% TCC Operations 404,349 470,995 16.5% 549,419 16.7% 556,754 1.3% 578,112 3.8% 595,413 3.0% 613,232 3.0% Museum & Cultural Arts 979,855 650,094 -33.7% 598,585 -7.9% 607,117 1.4% 628,884 3.6% 646,865 2.9% 665,367 2.9% Aquatics Operations 2,293,522 2,462,636 7.4% 2,490,173 1.1% 2,524,475 1.4% 2,618,334 3.7% 2,695,047 2.9% 2,774,024 2.9% Sports 893,405 849,154 -5.0% 768,571 -9.5% 779,417 1.4% 807,668 3.6% 830,930 2.9% 854,870 2.9% Community Theater Operations 1,615,673 1,517,308 -6.1% 1,509,094 -0.5% 1,531,276 1.5% 1,584,285 3.5% 1,628,536 2.8% 1,674,048 2.8% Contract Classes 1,692,791 1,538,000 -9.1% 1,398,618 -9.1% 1,423,134 1.8% 1,461,268 2.7% 1,495,922 2.4% 1,531,433 2.4% Homeless Outreach & Prevention 1,641,371 1,691,916 3.1% 1,648,359 -2.6% 1,677,682 1.8% 1,721,432 2.6% 1,761,584 2.3% 1,802,711 2.3% Workforce Development 435,832 - -100.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% Total Expenditures 20,331,619 20,521,086 0.9% 19,670,189 -4.1% 20,036,524 1.9% 20,716,433 3.4% 21,313,867 2.9% 21,929,315 2.9% Excess of Revenues 11%
Over Expenditures 731,619 (1,256,116) - - - - - Beginning Fund Balance 624,497 1,356,116 100,000 100,000 100,000 100,000 100,000 Ending Fund Balance 1,356,116 100,000 100,000 100,000 100,000 100,000 100,000 FY30-31FY29-30FY28-29FY27-28FY26-27FY25-26
288
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
68 | Annual Operating Budget 289
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 69
Financial Summaries
Fund Balance Summary
FUND BALANCE SUMMARY - ALL FUNDS
z
Beginning
Balance
2025-26
Revenues/
Transfers In
2025-26
Expenditures/
Transfers Out
2025-26
Beginning
Balance
2026-27
Revenues/
Transfers In
2026-27
Expenditures/
Transfers Out
2026-27
Ending
Balance
2026-27
GENERAL FUNDS
001: GENERAL FUND 44,254,734 119,706,013 130,651,717 33,309,030 126,785,290 130,343,408 29,750,913 002: MEASURE S FUND 51,937,180 39,349,858 57,373,912 33,913,126 40,708,524 48,419,650 26,202,000 006: FIRE FACILITY ACQUISITION FUND 4,954,636 2,173,287 5,000,000 2,127,923 1,173,287 -3,301,210 110: COMMUNITY REINVESTMENT PROGRAM 8,806,614 80,000 8,824,494 62,120 --62,120 TOTAL GENERAL FUNDS 109,953,164 161,309,159 201,850,123 69,412,199 168,667,102 178,763,058 59,316,243
SPECIAL REVENUE FUNDS
100: GAS TAX FUND - 3,269,427 3,269,427 -3,329,012 3,329,012 - 102: ROAD MAINTENANCE REHABILITATION ACCOUNT (RMRA)
FUND 5,001,057 3,128,263 6,907,425 1,221,896 3,307,005 2,883,697 1,645,204 103: STREET MAINTENANCE FUND 8,498,006 1,227,222 4,864,784 4,860,443 1,227,222 224,356 5,863,309 105: NPDES IN LIEU FEES FUND 311,601 19,603 155,382 175,822 19,603 -195,425 106: UPTOWN TEMECULA NEW STREETS IN-LIEU FEES 1,648,347 48,440 500,857 1,195,930 48,440 -1,244,370 120: DEVELOPMENT IMPACT FEES FUND 15,218,421 3,991,196 13,181,795 6,027,822 13,233,663 6,220,931 13,040,554 125: PUBLIC EDUCATION & GOVERNMENT (PEG) FUND 1,153,685 136,436 135,058 1,155,063 161,436 325,000 991,499 140: COMMUNITY DEV BLOCK GRANT FUND (43,945) 906,825 862,880 (0)986,807 986,807 (0) 145: TEMECULA ENERGY EFFICIENCY ASSET (TEAM) FUND 322,349 22,054 210,653 133,751 22,054 -155,805 150: AB 2766 MOTOR VEHICLE SUBVENTION FUND 593,350 166,694 651,035 109,009 170,028 183,200 95,837 160: SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND - 283,502 283,502 -283,502 283,502 - 165: AFFORDABLE HOUSING FUND 11,292,614 668,091 5,031,464 6,929,241 863,091 471,516 7,320,815 170: MEASURE A FUND 10,662,925 4,242,301 13,478,087 1,427,139 4,578,301 4,467,000 1,538,439 198: PUBLIC ART FUND 305,413 16,091 15,540 305,964 12,141 118,000 200,105 TOTAL SPECIAL REVENUE FUNDS 54,963,825 18,126,145 49,547,890 23,542,080 28,242,305 19,493,021 32,291,364
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)
190: TEMECULA COMMUNITY SERVICES DISTRICT FUND 1,356,116 19,264,970 20,521,086 100,000 19,670,189 19,670,189 100,000 191: TCSD SERVICE LEVEL "B" STREETLIGHT REPLACEMENT FUND 1,592,004 47,370 20,000 1,619,374 47,370 40,000 1,626,744 192: TCSD SERVICE LEVEL "B" STREET LIGHTS FUND 641,400 673,929 679,738 635,590 673,909 737,225 572,274 194: TCSD SERVICE LEVEL "D" REFUSE/RECYCLING FUND 737,968 10,680,929 11,279,506 139,390 11,759,698 11,899,089 (0) 195: TCSD SERVICE LEVEL "R" STREET/ROAD MAINT FUND 47,551 6,943 2,434 52,060 6,943 10,434 48,569 196: TCSD SERVICE LEVEL "L" LAKE PARK MAINT. FUND 358,276 287,841 376,576 269,541 287,434 370,364 186,610 197: TEMECULA LIBRARY FUND 254,678 1,357,507 1,512,186 100,000 1,824,161 1,824,161 100,000 501: SERVICE LEVEL"C"ZONE 1 SADDLEWOOD FUND 27,436 38,573 43,266 22,743 38,573 43,059 18,257 502: SERVICE LEVEL"C"ZONE 2 WINCHESTER CREEK FUND 151,640 47,188 61,547 137,281 47,188 62,813 121,656 503: SERVICE LEVEL"C"ZONE 3 RANCHO HIGHLANDS FUND 77,201 49,542 52,703 74,039 49,542 54,155 69,426 504: SERVICE LEVEL"C"ZONE 4 THE VINEYARDS FUND 7,330 6,577 7,796 6,112 6,577 8,048 4,641 505: SERVICE LEVEL"C"ZONE 5 SIGNET SERIES FUND 44,783 40,178 39,195 45,766 40,178 40,938 45,006 506: SERVICE LEVEL"C"ZONE 6 WOODCREST COUNTRY FUND 62,002 33,988 31,919 64,071 35,051 33,881 65,241 507: SERVICE LEVEL"C"ZONE 7 RIDGEVIEW FUND 20,575 15,845 15,380 21,040 15,845 19,620 17,265 508: SERVICE LEVEL"C"ZONE 8 VILLAGE GROVE FUND 144,321 140,940 136,905 148,356 140,940 142,709 146,586 509: SERVICE LEVEL"C"ZONE 9 RANCHO SOLANA FUND 31,436 6,123 5,172 32,387 6,123 5,747 32,763 510: SERVICE LEVEL"C"ZONE 10 MARTINIQUE FUND 19,253 10,283 9,977 19,559 10,283 10,685 19,157 511: SERVICE LEVEL"C"ZONE 11 MEADOWVIEW FUND 4,704 2,591 2,495 4,799 2,591 2,544 4,846 512: SERVICE LEVEL"C"ZONE 12 VINTAGE HILLS FUND 102,879 99,230 97,755 104,354 99,230 103,007 100,578 513: SERVICE LEVEL"C"ZONE 13 PRESLEY DEVELOP FUND 42,844 35,385 34,330 43,899 35,385 35,342 43,943 514: SERVICE LEVEL"C"ZONE 14 MORRISON HOMES FUND 16,703 15,195 14,240 17,658 15,195 16,136 16,717 515: SERVICE LEVEL"C"ZONE 15 BARCLAY ESTATES FUND 20,654 10,359 10,122 20,891 10,359 10,471 20,779 516: SERVICE LEVEL"C"ZONE 16 TRADEWINDS FUND 104,576 40,859 44,512 100,924 40,859 45,349 96,434 517: SERVICE LEVEL"C"ZONE 17 MONTE VISTA FUND 3,769 2,221 4,288 1,702 2,221 2,955 968 518: SERVICE LEVEL"C"ZONE 18 TEMEKU HILLS FUND 115,539 96,987 92,905 119,622 96,987 97,652 118,957 519: SERVICE LEVEL"C"ZONE 19 CHANTEMAR FUND 95,941 57,369 59,701 93,609 57,369 59,897 91,082 520: SERVICE LEVEL"C"ZONE 20 CROWNE HILL FUND 329,470 188,033 180,145 337,358 188,033 184,965 340,425 521: SERVICE LEVEL"C"ZONE 21 VAIL RANCH FUND 228,368 234,762 235,285 227,846 234,762 243,563 219,045 522: SERVICE LEVEL"C"ZONE 22 SUTTON PLACE FUND 15,176 4,864 7,305 12,736 4,864 7,447 10,153 523: SERVICE LEVEL"C"ZONE 23 PHEASENT RUN 35,885 9,539 8,591 36,833 9,539 8,783 37,589 524: SERVICE LEVEL"C"ZONE 24 HARVESTON FUND 79,617 163,138 161,755 81,001 163,138 170,503 73,636 290
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
70 | Annual Operating Budget
FUND BALANCE SUMMARY - ALL FUNDS
z
Beginning
Balance
2025-26
Revenues/
Transfers In
2025-26
Expenditures/
Transfers Out
2025-26
Beginning
Balance
2026-27
Revenues/
Transfers In
2026-27
Expenditures/
Transfers Out
2026-27
Ending
Balance
2026-27
525: SERVICE LEVEL"C"ZONE 25 SERENA HILLS FUND 105,796 47,061 55,800 97,057 47,061 57,333 86,786 526: SERVICE LEVEL"C"ZONE 26 GALLERY TRADITION FUND 3,067 2,253 2,170 3,150 2,253 2,219 3,184 527: SERVICE LEVEL"C"ZONE 27 AVONDALE FUND 15,020 9,476 10,212 14,284 9,476 10,384 13,376 528: SERVICE LEVEL"C"ZONE 28 WOLF CREEK FUND 243,891 240,733 239,997 244,628 240,733 246,749 238,612 529: SERVICE LEVEL"C"ZONE 29 GALLERY PORTRAIT FUND 14,189 5,443 4,005 15,628 5,608 6,093 15,143 530: SERVICE LEVEL"C"ZONE 30 FUTURE ZONES FUND 36,062 1,263 - 37,325 1,263 -38,589 TOTAL TCSD 7,188,121 33,975,490 36,060,999 5,102,612 35,926,933 36,284,510 4,745,036
SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT
AGENCY (SARDA)
380: SARDA DEBT SERVICE FUND (30,392,177) 7,124,988 7,406,655 (30,673,844)6,409,326 7,422,458 (31,686,976) TOTAL SARDA (30,392,177) 7,124,988 7,406,655 (30,673,844)6,409,326 7,422,458 (31,686,976)
INTERNAL SERVICE FUNDS
300: INSURANCE FUND 2,460,104 3,853,042 3,750,317 2,562,829 3,891,654 3,891,654 2,562,829 305: WORKERS' COMPENSATION FUND 1,676,027 627,598 695,835 1,607,789 330,049 627,245 1,310,593 310: VEHICLES AND EQUIPMENT FUND 5,672,783 631,670 935,978 5,368,475 675,712 924,527 5,119,660 320: INFORMATION TECHNOLOGY FUND 1,037,997 7,127,726 6,926,918 1,238,806 7,066,816 7,066,816 1,238,806 325: TECHNOLOGY REPLACEMENT FUND 4,865,314 440,721 1,014,491 4,291,543 356,323 526,158 4,121,708 330: SUPPORT SERVICES FUND 144 466,201 446,201 20,144 447,700 447,700 20,143 335: SUPPORT SERVICES REPLACEMENT FUND 425,293 43,610 72,200 396,703 37,719 72,200 362,222 340: FACILITIES FUND 24,000 1,674,946 1,696,104 2,842 1,761,841 1,756,842 7,842 350: FACILITY REPLACEMENT FUND 5,451,771 1,483,305 3,326,521 3,608,555 2,835,565 1,945,434 4,498,686 TOTAL INTERNAL SERVICE FUNDS 21,613,433 16,348,818 18,864,565 19,097,686 17,403,378 17,258,576 19,242,488
CAPITAL IMPROVEMENT PROGRAM
210: CAPITAL IMPROVEMENT PROGRAM FUND 10,821,039 168,255,832 171,056,022 8,020,849 19,984,411 20,537,261 7,467,999 TOTAL CAPITAL IMPROVEMENT PROGRAM 10,821,039 168,255,832 171,056,022 8,020,849 19,984,411 20,537,261 7,467,999
PENSION TRUST
700: CERBT CALIFORNIA EE RETIREE-GASB45 22,982,940 -1,726,931 21,256,009 - 1,726,931 19,529,078 701: PENSION RATE STABILIZATION FUND 6,424,485 -5,005,000 1,419,485 7,500,000 -8,919,485 TOTAL PENSION TRUST 29,407,425 -6,731,931 22,675,494 7,500,000 1,726,931 28,448,563 Grand Total 203,554,829 405,140,432 491,518,183 117,177,077 284,133,455 281,485,815 119,824,716 291
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 71
Major Revenue Sources
DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS
General
Fund/
Measure S
Special
Revenue/
Debt Funds
TCSD
Citywide
Operations
TCSD
Service
Levels
Internal
Service
Funds SARDA
Total
Revenues
Taxes and Franchises
Property Tax 12,907,422 12,907,422
Sales Tax 50,186,189 50,186,189
Sales Tax Sharing Agreement (1,865,655)(1,865,655)
Transactions And Use Tax 38,980,154 38,980,154
Franchise Fees 4,100,000 4,100,000
Transient Occupancy Tax 3,841,603 3,841,603
Special Tax (Measure C)2,110,500 1,955,076 4,065,576
Gas Tax 6,434,939 6,434,939
Redevelopment Property Tax Fund
Distribution 6,243,697 6,243,697
PEG Fees 125,000 125,000
Total Taxes and Franchises 110,260,213 6,559,939 1,955,076 6,243,697 125,018,925 Licenses, Permits and Service Charges
Quimby Fees 997,030 997,030
Land Development 2,185,627 2,185,627
Police 76,652 76,652
Printing & Copies 13,442 13,442
Harveston Lake Boat Revenue 7,500 7,500
Aquatics 337,650 337,650
Sports Leagues & Tournaments 271,375 271,375
Recycling Program 27,553 27,553
Development Fees 203,390 203,390
Public Art 2,350 2,350
Development Impact Fees 11,656,008 11,656,008
Business Licenses 292,257 292,257
Building 2,805,612 2,805,612
Planning 635,515 635,515
Fire 1,048,394 1,048,394
Contract Classes 1,200,000 1,200,000
Classes/Activities 64,500 64,500
Facility Rentals 419,081 419,081
Museum Admissions 95,100 95,100
Theater Admissions 297,000 297,000
Day Camps 120,450 120,450
Assessments 14,218,378 14,218,378
Charges For Services 950 14,113,811 14,114,761
Total Licenses, Permits and Service
Charges 7,248,397 12,655,387 2,818,598 14,253,431 14,113,811 51,089,624 Fines and Forfeitures
Fines & Forfeitures 467,627 10,178 477,805
Total Fines and Forfeitures 467,627 10,178 477,805
Use of Money and Property
Lease/Rental Income 266,631 16,540 283,171
Other 78,082 375,000 453,082
Investment Interest 3,659,224 1,701,838 22,049 173,152 489,567 165,629 6,211,458 Total Use of Money and Property 4,003,937 2,076,838 38,589 173,152 489,567 165,629 6,947,710 292
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
72 | Annual Operating Budget
DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS
General
Fund/
Measure S
Special
Revenue/
Debt Funds
TCSD
Citywide
Operations
TCSD
Service
Levels
Internal
Service
Funds SARDA
Total
Revenues
Intergovernmental Revenues
Property Tax In Lieu Of VLF 12,188,015 12,188,015
Vehicle License Fees 169,442 169,442
Grants 16,000 16,000
Community Development Block
Grant 986,807 986,807
AB2766 Motor Vehicle Subvention 153,334 153,334
Agency Trust Contribution 250,000 250,000
SLESF Grant 280,000 280,000
Measure A 4,280,000 4,280,000
Total Intergovernmental Revenues 12,373,457 5,950,141 18,323,598 Reimbursements
Capital Improvement Program 2,790,884 2,790,884
Pechanga IGA 1,396,498 1,396,498
Other Reimbursements 1,591,397 131,510 1,722,907
Total Reimbursements 5,778,779 131,510 5,910,289
Operating Transfers In
Operating Transfers In 4,612,514 4,612,514
Contribution From Measure S 23,872,579 1,000,000 16,450,824 2,800,000 44,123,403 Total Operating Transfers In 28,485,093 1,000,000 16,450,824 2,800,000 48,735,917 Miscellaneous 49,599 89,576 6,000 145,175
Total Miscellaneous 49,599 89,576 6,000 145,175
Total Revenues and Other Sources 168,667,102 28,242,305 21,494,351 14,432,583 17,403,378 6,409,326 256,649,044 293
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 73
DETAIL OF MAJOR REVENUE SOURCES - ALL FUNDS
General
Fund/
Measure S
Special
Revenue/
Debt Funds
TCSD
Citywide
Operations
TCSD
Service
Levels
Internal
Service
Funds SARDA
Total
Revenues
Taxes and Franchises 110,260,213 6,559,939 1,955,076 6,243,697 125,018,925 Licenses, Permits and Service Charges 7,248,397 12,655,387 2,818,598 14,253,431 14,113,811 51,089,624 Fines and Forfeitures 467,627 10,178 477,805
Use of Money and Property 4,003,937 2,076,838 38,589 173,152 489,567 165,629 6,947,710 Intergovernmental Revenues 12,373,457 5,950,141 18,323,598 Reimbursements 5,778,779 131,510 5,910,289
Operating Transfers In 28,485,093 1,000,000 16,450,824 2,800,000 48,735,917 Miscellaneous 49,599 89,576 6,000 145,175
Total Revenues and Other Sources 168,667,102 28,242,305 21,494,351 14,432,583 17,403,378 6,409,326 256,649,044 Total Revenues less Interfund
Transfers*207,913,127
* Interfund Transfers are eliminated at the Citywide level Taxes and
Franchises
49%
Licenses, Permits
and Service Charges
20%
Fines and
Forfeitures
0%
Use of
Money
and
Property
3%
Intergovernmental
Revenues
7%
Reimbursements
2%
Operating Transfers
In
19%
Miscellaneous
0%
Major Revenue Sources
294
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
74 | Annual Operating Budget
Major Expenditure Categories
DETAIL OF MAJOR EXPENDITURE CATEGORIES - ALL FUNDS
General
Funds
Special
Revenue/
Debt Funds
TCSD
Citywide
Operations
TCSD
Service
Levels
Internal
Service
Funds SARDA
Total
Expenditures
Salaries and Benefits 25,435,796 12,250,598 323,280 4,741,828 42,751,502 Operations and Maintenance 25,302,476 5,834,656 14,426,237 9,758,652 7,172,458 62,494,479 Public Safety Contracts 60,537,837 60,537,837
Internal Service Charges 10,297,049 3,409,096 40,643 13,746,788 Capital Outlay 270,250 2,758,096 250,000 3,278,346
Operating Transfers Out 56,919,650 4,570,601 1,550,000 63,040,251 Total Expenditures 178,763,058 4,570,601 21,494,350 14,790,160 18,808,576 7,422,458 245,849,203 Total Expenditures less
Interfund Transfers*182,808,952
* Interfund Transfers are eliminated at the Citywide level 295
City of Temecula
Fiscal Year 2026-2027
Annual Operating Budget
Annual Operating Budget | 75
MAJOR REVENUE SOURCES
All revenue estimates are developed using historical trend data and estimates of commercial and residential construction, assessed valuation, retail sales, population, changes in consumer price indexes, and general economic factors. Property tax revenue estimates are derived with input from an outside consultant, and considers estimated changes on the tax levy, property sales, appeals, and real property improvements. Sales tax revenue estimates are also derived with the input from an outside consultant, and considers factors such as new and closed retailers, business types, population changes, price fluctuations and the general economy. Licenses, permits, and service charges are estimated using building forecasts of the development community, changes in consumer price indexes, established fees for services and program, and historical trend data. The revenue estimates for Transient Occupancy Taxes are derived using average room rates, projected changes in room occupancy, special events, and feedback from Visit Temecula Valley.
Taxes and Franchises – 49% of Total Revenue
Sales and Use Tax: The largest revenue source for the City of Temecula is Sales and Use Tax, including the City’s Transactions and Use Tax, Measure S. In accordance with the California Revenue and Taxation Code, the State of California imposes a 7.25% sales and use tax on all taxable sales in the City, of which 1% is allocated to the City of Temecula. In 2016, City residents approved Measure S to establish an additional one percent Transactions and Use Tax revenue. This new tax became effective April 1, 2017. The City established the Measure S Fund to account for the fiscal activities related to this new revenue source. In addition, Riverside County voters approved Measure A in 1988, and again in 2002, to establish a half-cent Sales Tax dedicated to transportation funding. Measure A revenue is recorded in a separate Special Revenue Fund and is categorized as Intergovernmental Revenues. Currently, the total Sales Tax rate within the City is 8.75%
The City of Temecula serves as a regional shopping hub with the Promenade Mall, Old Town, and an Auto Mall.
Sales and Use Tax revenue is projected to increase by 1.9% over the prior fiscal year to $48,320,534.
The City continues to maintain a strong and diverse sales tax base by promoting economic development in areas such as manufacturing, light industrial, and retail businesses. Temecula continues to exceed the State, County, and surrounding areas with respect to sales per capita.
The Measure S Transactions and Use Tax is estimated to yield $38,980,154 which is a 3.6% increase over the prior year, consistent with projected growth in Sales Tax. Historically, Measure S receipts have averaged 80% of Sales Tax receipts.
Property Tax: Per Proposition 13, passed by California voters in 1978, the ad valorem Property Tax is assessed at 1% of the assessed valuation of real property, as determined by the County Assessor’s Office. The City is projecting Property Tax revenues to increase by 4.3% to a total of $12,907,422 due to the steady housing market, which still shows signs of low inventory and increasing home values.
Transient Occupancy Tax (TOT): The City of Temecula collects an 8% tax on the amount of transient (30 days or less) lodging rentals. TOT revenue is expected to decrease by 2.0% over the prior year, with a total of $3,841,603. 296