TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Roland Mendoza, Financial Analyst
SUBJECT:
title
CIP Budget Workshop - Proposed Capital Improvement Plan
FY 2024/25 to FY 2028/29
end
RECOMMENDATION
recommendation
Discuss and provide direction to staff regarding the proposed Fiscal Year 2024/25 Capital
Improvement Budget and the proposed Fiscal Years 2024/25 to 2028/29 Capital Improvement Plan; and
Receive and file the report.
body
PRIOR ACTION/VOTE
On June 14, 2023, the Planning Commission adopted Resolution PC-2023-08, making a recommendation to the City Council that they find that the proposed Capital Improvement Plan FY 2022/23-2026/27 was in conformance with the City of Murrieta General Plan (Vote: 5-0).
On August 15, 2023, 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. (23- 4699, MLB-23-18, CSD 23-278, RSA 23-30, and MFD 23-221) approving the Capital Improvement Budget for FY 2023/24 and approving the FY 2023/24-2027/28 Capital Improvement Plan (Vote: 5-0).
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
In this report, the Finance Department presents to the City Council the proposed Capital Improvement Plan (CIP) and budget for Fiscal Years (FY) 2024/25 to 2028/29, which provides funding for the City’s capital projects for FY 2024/25 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-reoccurring and recurring major construction or repair projects. CIP projects may include:
• Acquisition of land and right-of-way;
• Construction of and repairs to buildings, roadways, bridges, drainage, and parks, including major repair, reconstruction, and/or replacement of previous capital improvements; and
• Purchase of major equipment.
The proposed CIP provides for the appropriation of $23,404,302 for new projects and additions to existing projects. The program currently has $86,930,820 in previously appropriated projects that will be continued for a total CIP budget of $110,335,122 in FY 2024/25. 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. These are to 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. This was included 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 and development impact fees, for new improvements. Staff will recommend replenishing these sustainability reserve balances to their optimal reserve balances in the upcoming biennial budget appropriation process.
Staff is also bringing these projects forward to the City’s Planning Commission (PC) on May 8, 2024, 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 this review by the PC does not include the review or recommendation of the individual CIP projects. California Government Code section 65401 requires a list of proposed capital improvement projects be sent to the city planning agency for review and to report as to their conformity with the adopted General Plan.
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 4, 2024, after the public hearing on the budget. At that time staff will ask the City Council to adopt 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 Proposed Capital Improvement Projects FY 2024/25
2. Draft Proposed Capital Improvement Plan FY 2024/25 to 2028/29