TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: RN Mendoza, Financial Analyst
SUBJECT:
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CIP Budget Workshop - Proposed Capital Improvement Plan FY 2025/26 to FY 2029/30
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RECOMMENDATION
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Discuss and provide direction to staff regarding the Proposed Fiscal Year 2025/26 Capital Improvement Budget and the Proposed Fiscal Years 2025/26 to 2029/30 Capital Improvement Plan; and
Receive and file the report.
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PRIOR ACTION/VOTE
On May 8, 2024, the Planning Commission adopted Resolution PC-2024-04, recommending to the City Council that they find that the proposed Capital Improvement Plan FY 2024/25-2028/29 was in conformance with the City of Murrieta General Plan (Vote: 5-0).
On June 4, 2024, a joint resolution of the City Council of the City of Murrieta and the Boards of Directors of the Community Services District, Murrieta Fire District, and the Successor Agency for the Murrieta Redevelopment Agency adopted a series of Resolution Nos. (24- 4745, MLB-24-19, CSD 24-280, RSA 24-32, and MFD 24-222) approving the Capital Improvement Budget for FY 2024/25 and approving the FY 2024/25-2028/29 Capital Improvement Plan (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
This report presents to the City Council the proposed Capital Improvement Plan (CIP) and budget for Fiscal Years (FY) 2025/26 to 2029/30, which provides funding for the City’s capital projects for FY 2025/26 and planning for the following four years.
The City of Murrieta’s (City) Capital Improvement Plan establishes a master plan and long-term funding strategy to implement non-recurring and recurring major construction or repair projects. CIP projects may include:
• Acquisition of land and right-of-way;
• Construction of buildings, roadways, bridges, drainage, and parks, including major repair, reconstruction, and/or replacement of existing Capital Assets; and
• Purchase of major equipment.
For FY 2025/26, the proposed CIP includes a request to appropriate $11,184,462 for new projects and additions to existing projects. This is in addition to $103,445,371 in committed funds for previously approved, ongoing projects, bringing the total CIP budget for the year to $114,629,833. Attachment 1 of this report provides a summary of the new and existing projects that make up the $11,184,462 in new budget requests. Funding for these projects is provided by a variety of funding sources, which include Development Impact Fees, transportation funds, grants, and reimbursement agreements that are restricted for the purposes for which they are budgeted. These funds, for the most part, cannot be used for City operations.
Staff is bringing forward a CIP budget and a plan that addresses two of the City Council’s goals: 1) Maintain a high-performing organization that values fiscal sustainability, transparency, accountability, and organizational efficiency; and
2) Plan, program, and create infrastructure development.
During the last biennial operating budget process, the City Council also approved the Sustainability Reserve Balances. These balances were established and/or increased because a facility condition assessment identified facility repairs and replacements that have been deferred beyond the recommended useful life. The CIP budget and plan will address some of these issues by using the available Sustainability Reserves and other available funding sources, such as Transportation, Development Impact Fees, General Fund, and Measure T Unassigned Fund Balance for new improvements. Staff will recommend replenishing these Sustainability Reserve balances to their optimal reserve balances in the upcoming biennial budget appropriation process.
In February 2025, the City Council held a Priority-Setting Workshop to prioritize capital improvement projects in conjunction with the City’s administrative objectives. Through this collaborative biannual effort, staff have established a comprehensive three-tiered ranking system designed to ensure that funding is prioritized for the most impactful projects that align with the City Council’s goals and vision. Comprehensive details can be found in the CIP budget book attached to this report.
California Government Code section 65401 requires a list of proposed capital improvement projects to be sent to the city planning agency for review and to report as to their conformity with the adopted General Plan. Staff is bringing these projects forward to the City’s Planning Commission (PC) on May 14, 2025, for the sole purpose of determining whether the CIP projects are consistent with the goals and policies of the City’s General Plan 2035. The purpose of the PC review does not include the review or recommendation of the individual CIP projects.
Annually, the City Council, per California Government Code section 65403, adopts the five-year CIP to appropriate funding for new projects and amends existing projects as needed. Staff will bring this item back to the City Council on June 3, 2025, considering City Council directions during today’s CIP Budget Workshop. After the public hearing on the CIP Budget is held, the City Council will be asked to consider adopting the CIP Budget.
FISCAL IMPACT
This is an informational report only. There are no fiscal impacts associated with conducting the CIP budget workshop.
ENVIRONMENTAL IMPACT
This workshop is not a “project” as defined in CEQA Guidelines (Title 14, Division 6, Chapter 3 of the California Code of Regulations), Section 15378(b)(4), because it involves citywide budget allocations, which, on its own accord, will not cause a significant environmental impact. The individual projects will be evaluated in accordance with the CEQA Guidelines prior to implementation.
ATTACHMENTS
1. New and Annual Recurring CIP Projects Request Summary
2. Draft Proposed Capital Improvement Plan FY 2025/26 to 2029/30