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2021-05-19 City Council SPECIAL MEETING - Agenda PacketCity Council Chambers 29844 Haun Road Menifee, CA 92586 Bill Zimmerman, Mayor Bob Karwin, District 1 Matthew Liesemeyer, District 2   Lesa Sobek, District 3   Dean Deines, District 4    SPECIAL AGENDA Menifee City Council  Special Meeting Agenda Wednesday, May 19, 2021 2:00 PM Special Meeting Armando G. Villa, City Manager Jeffrey T. Melching, City Attorney Sarah A. Manwaring, City Clerk AS A RESULT OF THE COVID­19 VIRUS, RESULTING ORDERS AND DIRECTION FROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OF CALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL AS THE CITY OF MENIFEE EMERGENCY DECLARATION, LIMITED IN­PERSON ATTENDANCE IS CURRENTLY PERMITTED SUBJECT TO APPLICABLE LOCAL HEALTH RESTRICTIONS, INCLUDING MANDATORY MASKS/FACE COVERINGS AND PHYSICAL DISTANCING OF AT LEAST SIX FEET. WATCHING LIVE VIA YOUTUBE: If you would like to watch the meeting live from home, please visit the City’s webpage at https://cityofmenifee.us/agendas and click on the YouTube icon . Please note the YouTube icon will only appear once the meeting has started. THE COUNCIL CHAMBERS CAN ONLY ACCOMMODATE A LIMITED NUMBER OF PEOPLE WHILE OBSERVING SOCIAL DISTANCING REGULATIONS. PLEASE SEE THE INFORMATION BELOW FOR RESERVING A SEAT AND/OR REGISTERING TO MAKE A PUBLIC COMMENT. ATTENDING THE MEETING IN PERSON: Council Chambers Limited Seating Now Available 1. Reserved Seating: Prior to the meeting, sign up to ensure a seat in the Council Chambers. Email the City Clerk at smanwaring@cityofmenifee.us and let staff know the meeting in which you would like to reserve a seat. Reservations cannot be made prior to agenda posting. 2. Non­Reserved Seating: Seating available on a first come, first serve basis. The public may begin lining up 30 minutes prior to the start of the meeting. PUBLIC COMMENTS: 1. In­person: Sign up with staff at City Hall on the day of the meeting to provide public comment. The Clerk will call your name during the item(s) which you wish to speak on. 2. Virtual: Email publiccomments@cityofmenifee.us and include your name and the item(s) you wish to speak on. The City will provide the means by which you may join the meeting virtually and provide your public comment.  SPECIAL MEETING (2:00 PM) 1.CALL TO ORDER  2. ROLL CALL  3. PLEDGE OF ALLEGIANCE  4. DISCUSSION ITEMS  4.1 Fiscal Year 2021/2022 Budget & Capital Improvement Plan Workshop RECOMMENDED ACTION Review presentation and comment or provide input on the proposed Fiscal Year 2021/2022 Budget and Capital Improvement Plan. 5.ADJOURN  Decorum Policy Notes For more information on how to participate in the meeting, please visit the City’s webpage at https://cityofmenifee.us/agendas. Requests must be received prior to the item being heard. The Council anticipates and encourages public participation at its Council meeting on agenda items. While we encourage participation, we ask there be a mutual respect for the proceedings. Staff Reports Materials related to an item on this agenda, including those submitted to the City Council after distribution of the agenda packet, are available for public inspection by contacting Sarah Manwaring, City Clerk, at (951) 672­6777 during normal business hours. Compliance with the Americans with Disabilities Act If you need special assistance to participate in this meeting, you should contact Sarah Manwaring, City Clerk at (951) 672­6777. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. Menifee Mayor and City Council May 19,2021 Page 1 of 49 City Council Chambers29844 Haun RoadMenifee, CA 92586Bill Zimmerman, MayorBob Karwin, District 1Matthew Liesemeyer, District 2  Lesa Sobek, District 3  Dean Deines, District 4    SPECIAL AGENDA Menifee City Council Special Meeting AgendaWednesday, May 19, 20212:00 PM Special MeetingArmando G. Villa, City ManagerJeffrey T. Melching, City AttorneySarah A. Manwaring, City ClerkAS A RESULT OF THE COVID­19 VIRUS, RESULTING ORDERS AND DIRECTION FROM THEPRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OF CALIFORNIA, AND THERIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL AS THE CITY OF MENIFEEEMERGENCY DECLARATION, LIMITED IN­PERSON ATTENDANCE IS CURRENTLY PERMITTEDSUBJECT TO APPLICABLE LOCAL HEALTH RESTRICTIONS, INCLUDING MANDATORY MASKS/FACECOVERINGS AND PHYSICAL DISTANCING OF AT LEAST SIX FEET.WATCHING LIVE VIA YOUTUBE: If you would like to watch the meeting live from home, please visitthe City’s webpage at https://cityofmenifee.us/agendas and click on the YouTube icon . Pleasenote the YouTube icon will only appear once the meeting has started.THE COUNCIL CHAMBERS CAN ONLY ACCOMMODATE A LIMITED NUMBER OF PEOPLE WHILEOBSERVING SOCIAL DISTANCING REGULATIONS. PLEASE SEE THE INFORMATION BELOW FORRESERVING A SEAT AND/OR REGISTERING TO MAKE A PUBLIC COMMENT.ATTENDING THE MEETING IN PERSON: Council Chambers Limited Seating Now Available1. Reserved Seating: Prior to the meeting, sign up to ensure a seat in the Council Chambers. Email the CityClerk at smanwaring@cityofmenifee.us and let staff know the meeting in which you would like to reserve aseat. Reservations cannot be made prior to agenda posting.2. Non­Reserved Seating: Seating available on a first come, first serve basis. The public may begin lining up30 minutes prior to the start of the meeting.PUBLIC COMMENTS:1. In­person: Sign up with staff at City Hall on the day of the meeting to provide public comment. The Clerkwill call your name during the item(s) which you wish to speak on.2. Virtual: Email publiccomments@cityofmenifee.us and include your name and the item(s) you wish to speak on. The City will provide the means by which you may join the meeting virtually and provide your public comment.  SPECIAL MEETING (2:00 PM) 1.CALL TO ORDER  2. ROLL CALL  3. PLEDGE OF ALLEGIANCE  4. DISCUSSION ITEMS  4.1 Fiscal Year 2021/2022 Budget & Capital Improvement Plan Workshop RECOMMENDED ACTION Review presentation and comment or provide input on the proposed Fiscal Year 2021/2022 Budget and Capital Improvement Plan. 5.ADJOURN  Decorum Policy Notes For more information on how to participate in the meeting, please visit the City’s webpage at https://cityofmenifee.us/agendas. Requests must be received prior to the item being heard. The Council anticipates and encourages public participation at its Council meeting on agenda items. While we encourage participation, we ask there be a mutual respect for the proceedings. Staff Reports Materials related to an item on this agenda, including those submitted to the City Council after distribution of the agenda packet, are available for public inspection by contacting Sarah Manwaring, City Clerk, at (951) 672­6777 during normal business hours. Compliance with the Americans with Disabilities Act If you need special assistance to participate in this meeting, you should contact Sarah Manwaring, City Clerk at (951) 672­6777. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. Menifee Mayor and City Council May 19,2021 Page 2 of 49 CITY OF MENIFEE SUBJECT: Fiscal Year 2021/2022 Budget & Capital Improvement Plan Workshop MEETING DATE: May 19, 2021 TO: Mayor and City Council PREPARED BY: Wendy Preece, Deputy Finance Director REVIEWED BY: Rochelle Clayton, Deputy City Manager APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Review presentation and comment or provide input on the proposed Fiscal Year 2021/2022 Budget and Capital Improvement Plan. DISCUSSION This workshop is to provide an overview of the projected Fiscal Year 2021/2022 revenues and proposed expenditures, as well as the City’s Capital Improvement Plan. STRATEGIC PLAN OBJECTIVE Regular City Business FISCAL IMPACT There is no fiscal impact associated with the recommended action. The Fiscal Year 2021/2022 budget impact is to be determined and presented to City Council for adoption on June 2, 2021. ATTACHMENTS 1. Budget Workshop Presentation Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:1 Menifee Mayor and City Council May 19,2021 Page 3 of 49 City of Menifee FY 21/22 Budget Workshop Rochelle Clayton, Deputy City Manager Wendy Preece, Deputy Finance Director Margarita Cornejo, Financial Services Manager May 19, 2021 -1- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:2 Menifee Mayor and City Council May 19,2021 Page 4 of 49 Menifee, The Final Frontier ➢4th Fastest Growing City in California ➢Increased Commercial Development ➢Increased Residential Development ➢Increased Property Values ➢Increased Sales Tax Base -2- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:3 Menifee Mayor and City Council May 19,2021 Page 5 of 49 Menifee Has Hit The Big Times The City of Menifee’s Population will go over 100,000 in the next few months -3- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:4 Menifee Mayor and City Council May 19,2021 Page 6 of 49 This is the Budget of the Starship Menifee. Our Mission: •Accomplish goals of the Strategic Plan •Reduce Police Response Times •Reduce Road Complaint Response Times •Get CIP Projects Shovel Ready •Address Traffic Issues •Support High Land Development Workload •Support Increased Park Acreage (25+) and ROW Maintenance •Provide Sufficient Support Staff to Accomplish these Goals TO BOLDLY GO WHERE NO CITY HAS GONE BEFORE…-4- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:5 Menifee Mayor and City Council May 19,2021 Page 7 of 49 PURPOSE OF THE ANNUAL BUDGET ANALYZE CURRENT ECONOMIC CONDITIONS PRIORITIZE SPENDING STRATEGICALLY PLAN USE OF RESOURCES FORECAST REVENUES & EXPENDITURES (Assumptions) -5- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:6 Menifee Mayor and City Council May 19,2021 Page 8 of 49 FINANCIAL RECOVERY ✓Analyze Current Economic Conditions -6- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:7 Menifee Mayor and City Council May 19,2021 Page 9 of 49 CITY IMPACTS -7- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:8 Menifee Mayor and City Council May 19,2021 Page 10 of 49 Budget Assumptions & Sources -HdL Companies -County of Riverside -State of California -Other Agencies -Historical data & trends SOURCES-Projected Revenues (sales tax, property tax, permit fees, franchise fees) -Projected Population changes -Projected Staffing needs -Projected new Economic Development ASSUMPTIONS Forecast Revenues & Expenditures -8- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:9 Menifee Mayor and City Council May 19,2021 Page 11 of 49 ▪HdL Companies forecast the Sales Tax projections: •FY 21/22 General Fund Revenue projections $9,425,000 •FY 21/22 Quality of Life Measure Revenues projections $14,736,000 ASSUMPTIONS: ✓Forecast Revenues ▪HdL Companies forecast the Property Tax projections: •FY 21/22 Secured Property Tax $8,486,722 •FY 21/22 Structural Fire Property Tax $7,646,732 -9- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:10 Menifee Mayor and City Council May 19,2021 Page 12 of 49 Budget Assumptions Staff began budget preparations in January and finalized FY 21/22 Revenue Projections by the end of April. ▪Total General Fund Revenue and Transfers In (Grants) are projected at: $59,885,280 ▪Total Quality of Life Measure Revenue is projected at: $14,776,000 ASSUMPTIONS: -10- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:11 Menifee Mayor and City Council May 19,2021 Page 13 of 49 TOTAL GENERAL FUND REPORTING -11- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:12 Menifee Mayor and City Council May 19,2021 Page 14 of 49 TOTAL GENERAL FUND REVENUES & EXPENDITURES Total General Fund General Fund Quality of Life -12- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:13 Menifee Mayor and City Council May 19,2021 Page 15 of 49 STAFFING FY 21/22 Position Updates -13- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:14 Menifee Mayor and City Council May 19,2021 Page 16 of 49 HIRING STRATEGY –CRITICAL AREAS ▪Police Department –adding staff to reduce response times @ almost 4th year level of the 12/2020 5-year projection w/availability of American Rescue Plan Act Funding ▪Public Works –adding staff & equipment to address street maintenance and illegal dumping response times ▪CIP –an almost $28 million CIP plan, preparing to be shovel ready for Grants, Federal Infrastructure Funding or any other available funding opportunities ▪Traffic –adding staff to address citywide traffic needs while reducing contract costs ▪Land Development –adding staff to enhance customer service for the continued heavy workload demands ▪Parks & ROW –adding staff to handle 25+ new acres of parks and ROW maintenance ▪Support Services –adding staff to assist with the citywide increase in staff and constituent, vendor and developer demands -14- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:15 Menifee Mayor and City Council May 19,2021 Page 17 of 49 FY 21/22 Positions Requested -15- Department Position Title FTE City Clerk's Office Management Analyst 1 City Manager's Office Management Analyst 1 Community Development Associate Planner 1 Community Services Park Maintenance Worker II 1 Park Maintenance Worker II (ROW)1 Part Time Office Aide 0.5 Engineering Principal Engineer (Land Development)1 Associate Engineer 1 Traffic Technician 1 Finance Purchasing & Contract Specialist 1 Fleet Fleet & Equipment Supervisor 1 IT IT Analyst 1 IT Technician 0.5 Menifee PD Police Lieutenant 1 Police Sergeant 1 Police Officer 7 Investigative Specialist II 1 Administrative Assistant 1 Public Works Street Maintenance Worker II 1 Street Maintenance Worker I 1 Grand Total 25 Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:16 Menifee Mayor and City Council May 19,2021 Page 18 of 49 FY 21/22 Reclassifications Requested -16- Department From To City Manager Deputy City Manager Assistant City Manager Community Development Senior Planner Principal Planner Engineering Office Specialist II Engineering Technician Finance Accounting Assistant Accounting Technician I Menifee PD Community Services Officer (CSO)Sr. Community Services Officer (CSO) Records Technician Sr. Records Technician Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:17 Menifee Mayor and City Council May 19,2021 Page 19 of 49 GENERAL FUND FY 21/22 PROPOSED BUDGET Total Estimated Revenues/Transfers In/Use of Fund Balance: $74,835,100 Less Operating Expenditures & Capital Projects: ($74,835,100) Operating Surplus/(Deficit): $0 -17- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:18 Menifee Mayor and City Council May 19,2021 Page 20 of 49 TOTAL GENERAL FUND REVENUES & EXPENDITURES Total OPERATING REVENUES of $71,044,636 exceed total OPERATING EXPENDITURES of $69,365,100 by a SURPLUS of $1,679,536 which is allocated to Capital Projects.-18- REVENUES General Fund Operating Revenues FY2021/22 $56,268,636 Quality of Life Measure Revenues FY2021/22 14,776,000 Total General Fund Revenues $71,044,636 Transfer In/American Rescue Plan Funding $3,616,644 Quality of Life Measure Use of Reserves 173,820 Total Sources of Funds $74,835,100 EXPENDITURES General Fund Operating Expenditures FY2021/22 $57,255,280 Quality of Life Measure Expenditures FY2021/22 12,109,820 Total General Fund Expenditures $69,365,100 Capital Projects/Capital Outlays 5,470,000 Total Uses of Funds $74,835,100 Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:19 Menifee Mayor and City Council May 19,2021 Page 21 of 49 American Rescue Plan (ARP) Act of 2021 ▪City of Menifee Allocation = $6,606,837 in May 2021 and $6,606,837 in May 2022 for a total of $13,213,674 ▪Allowable uses: Support Public Health Response Replace Public Sector Revenue Loss Water and Sewer Infrastructure Address Negative Economic Impacts Premium Pay for Essential Workers Broadband Infrastructure -19- $3,616,644 is included in the proposed budget as indicated in the previous slide. Any additional allocations of the grant funding will be taken to Council for approval as staff identifies qualified uses. Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:20 Menifee Mayor and City Council May 19,2021 Page 22 of 49 FISCAL YEAR 2021/22 Revenue vs. Expenditures -20- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:21 Menifee Mayor and City Council May 19,2021 Page 23 of 49 FISCAL YEAR 2021/22 REVENUES, TRANSFERS IN AND USE OF FUND BALANCE -21--21- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:22 Menifee Mayor and City Council May 19,2021 Page 24 of 49 GENERAL FUND REVENUES -22- REVENUES FY 2019/20 Actuals FY 2020/21 Adjusted Budget FY 2021/22 Proposed Percentage (%) Change (FY21 to Proposed) Percentage (%) of Total Property Tax 14,397,064$ 16,561,182$ 17,391,094$ 5.01%24.48% Sales Tax 8,485,225 9,200,000 9,425,000 2.45%13.27% Development Fees 12,467,019 12,893,800 14,025,890 8.78%19.74% Vehicle License Fee 7,156,803 7,674,277 8,200,000 6.85%11.54% Franchise Fees 6,739,806 3,872,963 3,985,000 2.89%5.61% Quality of Life 12,617,232 14,000,000 14,736,000 5.26%20.74% Other 3,321,727 2,753,299 3,281,652 19.19%4.62% Total General Fund Revenues 65,184,875$ 66,955,521$ 71,044,636$ 6.11%100.00% Transfers In 139,675$ 141,630$ 3,616,644$ *n/a n/a Transfer In/Use of Fund Balance n/a n/a 173,820$ n/a n/a Total General Fund Sources 65,324,550$ 67,097,151$ 74,835,100$ n/a n/a *Transfer In from the Grant Fund from American Rescue Plan Funds Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:23 Menifee Mayor and City Council May 19,2021 Page 25 of 49 GENERAL FUND EXPENDITURES -23- EXPENDITURES FY 2019/20 Actuals FY 2020/21 Adjusted Budget FY 2021/22 Proposed Budget Percentage (%) Change Percentage (%) of Total Public Safety (Fire, Police, Code, Animal)36,454,066$ 36,196,251$ 39,076,321$ 7.96%56.69% Administration 7,924,084 14,032,927 11,856,208 -15.51%*17.20% Public Works/Engineering/NPDES/EOS 4,855,395 6,451,446 7,010,431 8.66%10.17% Community Development 2,412,727 4,244,860 3,233,588 -23.82%**4.69% Community Services 2,399,846 2,879,357 3,382,644 17.48%***4.91% Building & Safety 2,053,021 2,154,531 2,364,881 9.76%3.43% Economic Development 1,280,756 1,528,148 1,709,889 11.89%***2.48% City Council 160,839 315,958 291,137 -7.86%0.42% Total General Fund Expenditures 57,540,735 67,803,479 68,925,100$ 8.57%100.00% Capital Projects/Capital Outlays 2,240,100 12,192,564 5,910,000$ -51.53%**** Total General Fund Uses 59,780,834$ 79,996,042$ 74,835,100$ n/a n/a *FY 20/21 Administration Adjusted Budget includes $2,500,000 transfer out of Waste Management funds for capital projects **FY 20/21 Community Development includes $476,000 for the General Plan and Development Code ***FY 20/21 Community Services and Economic Development Adjusted Budgets were reduced due to Covid-19 ****FY 20/21 Capital Projects/Capital Outlay Adjusted Budget reflects roll-overs of long-term capital projects Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:24 Menifee Mayor and City Council May 19,2021 Page 26 of 49 GENERAL FUND EXPENDITURES -24- Public Safety (Fire, Police, Code, Animal) 56.69% Administration 17.20% Public Works/Engineering/N PDES/EOS 10.17% Community Development 4.69% Community Services 4.91% Building & Safety 3.43% Economic Development 2.48% City Council 0.42% $68,925,100 not including Capital Projects Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:25 Menifee Mayor and City Council May 19,2021 Page 27 of 49 QUALITY OF LIFE MEASURE -FY2021/22 Revenue & Expenditures Summary -Quality of Life Measure Expenditure Detail -Quality of Life Measure Summary -25- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:26 Menifee Mayor and City Council May 19,2021 Page 28 of 49 QUALITY OF LIFE MEASURE FUNDING INCREASING PUBLIC SAFETY ENHANCING FIRE SERVICES IMPROVING INFRASTRUCTURE Menifee voters approved Measure DD, the one percent sales tax increase, by a convincing 68 percent in November 2016. Revenues from Measure DD are required to remain local and can only be used for critical City services like public safety and 911 emergency response services; keeping our roads, parks and infrastructure in good condition; and other general service needs that make Menifee a desirable place to work, play and do business. The Measure DD Citizen Oversight Committee meets regularly and provides oversight on how Measure DD funds are spent to ensure the integrity of the measure. With these funds, the City of Menifee is able bridge the funding gap required to maintain a safe, clean and vibrant community our residents have come to expect. -26- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:27 Menifee Mayor and City Council May 19,2021 Page 29 of 49 QUALITY OF LIFE MEASURE FUNDING ENHANCING FIRE SERVICES The Measure DD Citizen Oversight Committee meets regularly and provides oversight on how Measure DD funds are spent to ensure the integrity of the measure. The Measure DD Oversight Committee reviewed the proposed budget at its meeting on May 18, 2021. -27- Staff will report out the recommendation by the Oversight Committee during the Budget Workshop. Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:28 Menifee Mayor and City Council May 19,2021 Page 30 of 49 Proposed Quality of Life Measure FY 21/22 Budget Code Enforcement $ 374,253 2.50% Personnel –3 Officers 374,253 CalFire Department 5,171,600 34.59% Personnel 5,171,600 Menifee Police Department 6,290,089 42.07% Dispatch (40%)1,262,907 Personnel 5,027,182 Capital Projects/Capital Outlays 3,113,878 20.84% Total Proposed FY 20/21 Expenditure Budget $14,949,820 100.00% Recommendation to budget use of 6/30/21 projected ending fund balance -$173,820 -28- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:29 Menifee Mayor and City Council May 19,2021 Page 31 of 49 Proposed Quality of Life Measure - FY 21-22 CIP Funding Request -29- Project N ame Requested Funds PD HQ PARKING LOT UPGRADES - RESURFACING 390,000 PD HQ UPGRADES - WALL, CARPORTS, LIGHTING 250,000 HOLLAND RD OVERPASS 1,500,000 BRADLEY BRIDGE 250,000 ROAD EQUIPMENT 273,878 MENIFEE RD (PMP)(HOLLAND-NEWPORT)230,000 NORMANDY RD PEDESTRIAN IMP 220,000 3,113,878 Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:30 Menifee Mayor and City Council May 19,2021 Page 32 of 49 QUALITY OF LIFE MEASURE REVENUE & EXPENDITURES FY 21/22 -30- Expenditures FY 2019/20 Actuals FY 2020/21 Adjusted Budget FY 2021/22 Proposed Budget Percentage (%) Change Percentage (%) of Total Menifee Police 4,855,886$ 5,274,178$ 6,290,089$ 19.26%53.14% Riverside County Sheriff 3,573,072$ -$ -$ 0.00%0.00% CalFire 3,893,526 4,911,862 5,171,600 5.29%43.69% Code Enforcement 234,261 302,396 374,253 23.76%3.16% Total Expenditures 12,556,745$ 10,488,436$ 11,835,942$ 12.85%100.00% Capital Projects/Capital Outlays 2,240,100 9,106,119 3,113,878 -65.80%*26.31% Total Uses 14,796,845$ 19,594,555$ 14,949,820$ n/a n/a *FY 20/21 included $1.5 million for ladder truck, $2.2 million for Holland Overpass and $2.2 million for new Fire Station #5 Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:31 Menifee Mayor and City Council May 19,2021 Page 33 of 49 FY 21/22 MENIFEE POLICE DEPARTMENT -31- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:32 Menifee Mayor and City Council May 19,2021 Page 34 of 49 POLICE BUDGET –All Funds (Proposed 78 Sworn Officers, 24 Professional Staff) -32- *NOTE -Sheriff's Department provided 120 Patrol Hours Menifee’s current staffing of 69 sworn = 234 Patrol Hours. Personnel 15,089,085$ Operation 5,659,127 Murrieta Dispatch 3,200,000 TOTAL FY 21/22 BUDGET:23,948,212$ General Fund Allocation 17,376,416$ Quality of Life Measure Allocation 6,290,089 CSA 86 Fund Allocation 141,707 SLESF Cops Grant Fund Allocation 140,000 TOTAL FY 21/22 BUDGET:23,948,212$ POLICE FUNDING BUDGET POLICE EXPENDITURE BUDGET - 239 Patrol Hours Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:33 Menifee Mayor and City Council May 19,2021 Page 35 of 49 December 2020 Menifee Police 5-Yr Proj. vs FY 21/22 Proposed Revised with FY 21/22 Personnel Requested:During the December presentation, staff did not include investigative hours; the proposed staffing plan increases investigative hours by 28 hrs, traffic by 5.5 hrs and patrol by 5 hrs, for a total of 38.5 hours. -33- ADOPTED Dec-20*PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED FY 20-21 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 SWORN OFFICERS 60 69 69 69 75 81 87 PROFESSIONAL STAFF 18 22 22 22 24 26 27 PATROL HOURS 205 234 234 234 251 268 268 TRAFFIC HOURS 11.4 23 23 23 28.7 34.4 34.4 INVESTIGATIVE HOURS 34 40 40 40 40 45 45 *Added 13 positions SCENARIO: ADDITIONAL EMPLOYEES IN YEARS 3-5 POLICE DEPARTMENT ADOPTED Dec-20*PROJECTED*PROJECTED PROJECTED PROJECTED PROJECTED FY 20-21 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 SWORN OFFICERS 60 69 78 78 78 81 87 PROFESSIONAL STAFF 18 22 24 24 24 26 27 PATROL HOURS 205 234 239 239 239 268 268 TRAFFIC HOURS 11.4 23 28.5 28.5 28.5 34.4 34.4 INVESTIGATIVE HOURS 34 40 68 68 68 68 74 *Proposing adding 11 positions POLICE DEPARTMENT SCENARIO: ADDITIONAL EMPLOYEES IN YEARS 3-5 Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:34 Menifee Mayor and City Council May 19,2021 Page 36 of 49 FY 21/22 CAPITAL PROJECTS & CAPITAL OUTLAYS -34- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:35 Menifee Mayor and City Council May 19,2021 Page 37 of 49 FY 21/22 Capital Projects with New Funding -35- Transportation Projects (7) Holland Road Overpass 10,515,368 Bradley Bridge 1,670,713 McCall Blvd. Interchange 356,958 Scott/Bundy Cyn Widening 2,978,640 Valley Blvd. Widening 1,300,000 McCall Blvd. Widening (Hospital-Menifee)2,517,000 Bailey Blvd. Street Improvements 1,107,000 20,445,679$ Traffic Signal Projects (2) Menifee/Garbani Traffic Signal 1,140,000 Antelope/MSJC Traffic Signal 600,000 1,740,000$ Street Improvement Projects (1) Normandy Road Pedestrian Improvements 410,000 410,000$ Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:36 Menifee Mayor and City Council May 19,2021 Page 38 of 49 FY 21/22 Capital Projects with New Funding -36- Pavement Management Projects (3) Menifee Road PMP (Holland-Newport)1,730,000 Tradewinds Community PMP 969,663 Peacock Community PMP 218,017 2,917,680$ Public Facilities/Maintenance Projects (5) Park & Facility Multi Use Trailers 500,000 Above Ground Fuel Station 750,000 Police Station Upgrades - Wall, Carports, Lighting 250,000 Police Station Parking Lot Upgrades - Resurfacing 390,000 City Council Chambers Ballistic Glass Windows 200,000 2,090,000$ Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:37 Menifee Mayor and City Council May 19,2021 Page 39 of 49 FY 21/22 Capital Projects with New Funding -37- *Total of 23 capital projects receiving new funding in FY 21/22 Parks & Trails (5) Park Amenity Enhancements 50,000 Sports Court Resurfacing 80,000 Parking Lot Resurfacing 50,000 Park Lighting 150,000 Shade Structures 45,000 375,000$ Total FY 21/22 Capital Projects ys:27,978,359$ Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:38 Menifee Mayor and City Council May 19,2021 Page 40 of 49 RESERVE/FUND BALANCE POLICY – Where we are now… -38- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:39 Menifee Mayor and City Council May 19,2021 Page 41 of 49 FUND BALANCE POLICY ▪Fund Balance Policy adopted by City Council by Resolution 13- 340 on August 21, 2013 ▪To establish a minimum of 25% General Fund Balance Reserve (equal to approximately 3 months of operating expenses) with the following Reserve Balances: •Operating Stabilization Reserve of 10% for Catastrophic Emergencies. (FY 21/22 = $6,892,510*) •Economic Uncertainty Reserve of 10% for Economic Distress. (FY 21/22 = $6,892,510*) •Unassigned Fund Balance Reserve of 5% designed to protect against cash flow shortfalls. (FY 21/22 = $3,446,255*) •Additional Unassigned Fund Balance is estimated to be $21,392,000 at 6/30/21 *If the current proposed budget is adopted these reserve balances will be adjusted for FY 21/22 -39- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:40 Menifee Mayor and City Council May 19,2021 Page 42 of 49 FY 21/22 CITYWIDE BUDGET -40- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:41 Menifee Mayor and City Council May 19,2021 Page 43 of 49 TOTAL CITY-WIDE EXPENDITURES -41- FY 21/22 Total: $122,669,656 Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:42 Menifee Mayor and City Council May 19,2021 Page 44 of 49 TOTAL ALL FUNDS BUDGET with Fund Balance -42- Fund Projected Beginning Fund Balance (7-01-2021) Proposed Revenues & Transfers In Proposed Expenditures & Transfers Out Projected Ending Fund Balance (6-30-2022) AQMD 56,417$ 116,700$ 116,700$ 56,417 CAPITAL PROJECTS 162,877$ 114,868 277,745 - CDBG -$ 520,026 520,026 - CFD'S 3,768,364$ 3,549,139 3,452,697 3,864,805 CSA'S (174,007)$ 1,875,819 1,987,373 (285,561) DEBT SERVICE 1,575,770$ 1,787,151 1,787,151 1,575,770 DIF/QUIMBY/RBBD 8,386,672$ 5,246,745 7,312,353 6,321,064 FACILITIES MAINTENANCE 69,404$ 712,282 712,282 69,404 FLEET MAINTENANCE 13,890$ 1,959,343 1,959,343 13,890 GAS TAX -$ 2,393,327 2,393,327 - GENERAL FUND 41,623,608$ 59,885,280 59,885,280 41,623,608 GRANT FUND 817,714$ 6,606,837 3,616,644 3,807,907 IT FUND 1,902,512$ 4,395,700 5,101,327 1,196,885 LLMD'S 3,086,032$ 840,061 836,264 3,089,829 MEASURE A -$ 1,952,000 1,952,000 - MEASURE DD 173,820$ 14,776,000 14,949,820 - P.E.G. FUND 424,106$ 175,000 268,000 331,106 SB 1 FUND 187,876$ 1,827,490 2,015,366 - SLESF FUND 84,015$ 140,000 140,000 84,015 TRUST FUND 98,667$ - - 98,667 TUMF FUND 1,624,398$ 14,928,423 13,385,958 3,166,863 GRAND TOTAL 63,882,135$ 123,802,191$ 122,669,656$ 65,014,669$ Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:43 Menifee Mayor and City Council May 19,2021 Page 45 of 49 BUDGET SUMMARY ✓Analyze Current Economic Conditions ✓Forecast Revenues ✓Forecast Expenditures ✓Prioritize Spending ✓Strategically Plan the Use of Resources -43- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:44 Menifee Mayor and City Council May 19,2021 Page 46 of 49 •With the Covid-19 American Rescue funds, bring the Police Department staffing levels to projected FY 24/25 in FY 21/22 and reduce response times. •Continue to right size citywide staffing levels in-line with City growth, to continue to provide citizens and customers with excellent customer service. •Provide Public Works staff with additional heavy equipment to bring more road maintenance abilities in-house and reduce response times. •Get CIP projects shovel ready to take advantage of grant funding opportunities. CAREFUL PLANNING = BALANCED BUDGET FISCAL PLANNING -44- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:45 Menifee Mayor and City Council May 19,2021 Page 47 of 49 Payroll BUDGET PROCESS SUMMARY 1 Annual Budget Kick-Off Meeting 2/9/21 2 City Departments Submittals & Review Feb-Mar 3 Preliminary Budget Finalized May 4 Budget Adoption (June 2, 2021) 5 Mid-Year Budget Adjustments (February 2022) Budget Workshop (May 19, 2021) 6 After Council Adoption –Next steps are to evaluate the ACTUAL revenues and expenditures, and return to Council in Approximately February 2022 with Mid- Year Budget Adjustments.-45- Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:46 Menifee Mayor and City Council May 19,2021 Page 48 of 49 Questions? Thank You. LIVE LONG AND PROSPER…. Item Title:4.1 Fiscal Year 2021/2022 Budget &Capital Improvement Plan Workshop Item Page Number:47 Menifee Mayor and City Council May 19,2021 Page 49 of 49