City OfCalimesa Joint City Council & Successor Agency to the Calimesa Redevelopment Agency Minutes of Budget Workshop Special Meeting May 19, 2025 CALL TO ORDER 3:00 p.m. by Mayor Molina ROLL CALL: MAYOR MOLINA, MAYOR PRO TEM CERVANTEZ, COUNCIL MEMBER CUNDIEFF, COUNCIL MEMBER GARCIA AND COUNCIL MEMBER MANLY. ABSENT: NONE STAFF: CITY MANAGER KOLBOW, CITY ATTORNEY FLOWER, CITY CLERK GERDES, FINANCE DIRECTOR REID, SENIOR PLANNER SEVILLA, PUBLIC WORKS DIRECTOR SHAKIR, CITY ENGINEER THORNTON, FIRE CHIEF O'CONNELL AND SHERIFF CAPTAIN NORTHRUP. PLEDGE OF ALLEGIANCE Pledge of Allegiance was led by Council Member Cundieff. APPROVAL OF THE AGENDA MOTION BY COUNCIL MEMBER MANLY, SECONDED BY COUNCIL MEMBER CUNDIEFF, CARRIED 5-0 TO APPROVE THE AGENDA AS PRESENTED. COMMUNICATIONS FROM THE PUBLIC PLEASE NOTE: members of the public will be provided the opportunity to directly address the City Council concerning the item described below before the City Council considers such item. No other communications from the public of any other business shall be considered. David Zaitz, Calimesa resident spoke regarding the lack of security in the Summerwind Park, adding that there has been a lot of vandalism in the park lately and monies need to be budgeted for security cameras in the park as they are at the Mountainview Park. JOINT WORKSHOP ITEM 1. JOINT REVIEW OF THE FISCAL YEAR 2025-26 BUDGET FOR THE CITY OF CALIMESA AND THE SUCCESSOR AGENCY TO THE CALIMESA REDEVELOPMENT AGENCY. RECOMMENDATION: That the City Council and the Calimesa Successor Agency Board of Directors review and discuss the Fiscal Year 2025-26 Proposed Operating Budget and provide direction as appropriate. City Manager Kolbow and Finance Director Reid presented a Power Point presentation of the Fiscal Year 2025-2026 Draft Budget. Joint City Council and Successor Agency to the Calimesa Redevelopment Agency Action Minutes of the Budget Workshop Special Meeting of May 19, 2025 3:00 p.m. Page 1 of 4 The budget was presented as follows: FY 2025-26 GENERAL FUND SUMMARY: Proposed General Fund FY2024-25 Ongoing One-time Total Estimated Revenues $ 10,410,802 $ 468,000 $ 10,878,802 Proposed Expenditures (10,282,253) (350,000) (10,632,253) Operating Surplus 128,549 118,000 246,549 Transfers Out (45,000) (855,980) (900,980) Net Change 83,549 (737,980) (654,431) Projected Beginning Fund Balance 7,390,977 Estimated Ending Fund Balance $ 6,736,546 General Fund Revenues are as follows: 76% of Revenue come from 3 categories = Sales Tax, Property Tax & VLF = Charges for Services higher by 375K for One-Time Transfer from CFD Public Services Maintenance Fund - Most of the revenue from these 3 sources come in late January and late May. General Fund Expenditures are as follows: Police & Fire - 62% of budget. Also spend an additional $221k from Supplemental Law Enforcement Safety Fund for a total of $3.1 million. About 37% of costs are City employee costs, however, it climbs to 67% when you factor in labor costs from contract employees and RSO contract services. A summary of one-time expenditures included in the proposed budget are as follows: Proposed One-time Requests by Department Budget City Manager - Strategic Planning & Economic Development D - 125,000 Legal - Attorney Fees 85,000 Information Technology - Plotter/Scanner 10,000 Community Devel. - Safety & AB98 Circulation Study 120,000 Community Services - 35 Year Anniversary Celebration 10,000 Total One-Time General Fund Proposed Expenditures $ 350,000 Capital Improvement Plan FY Overview Highlights Five-year Planning Horizon Joint City Council and Successor. Agency to the Calimesa Redevelopment Agency Action Minutes of the Budget Workshop Special Meeting of May 19, 2025 3:00 p.m. Page 2 of 4 Appropriations are only for FY2025-26 Projects 22 Carryover Projects (includes facility improvements, pavement management and IT) Proposed $80.1 million investment over next five years o FY2025-26 - $4.5 million General Fund 5-Year Estimate - $2.8 million Carryover funding of $43.4 million as of February 2025 $2.7 million is in the Capital Projects Fund Final carryover amount to be determined when books close on FY2024-25 CIP Overview 5-Year Planning Period: Estimated Category Carryovers FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 TOTAL Facilities $ 1,535,101 72.180 $ 510,000 $ 10,000 $ 5,000 $ 250,000 $ 2,382,281 Parks 3,265,697 11,000 3,276,697 Transportation 29,408,044 44,182,500 27,067,500 2,000,000 102,658,044 Storm Drains 9,038,655 3.925,079 12,963,734 Vehicles 427.000 511,000 251,000 256,000 261,000 1,706,000 IT. 171,984 149,600 34,800 35,300 31,500 65,000 488,184 TOTAL $ 43,419,481 $ 4,584,859 $ 45,238,300 $ 27,363,800 $ 292,500 $ 2,576,000 $123,474,940 Available Reserves (Projected): Projected Balance at Reserve 6/30/2026 General Fund Contingency Reserves $ 3,208,819 Reserve for Parks & Trails (75k) & Mobile Home Rent (265K) 340,000 General Fund Unreserved Fund Balance 3,187,727 Capital Projects Fund Balance (Fund 16) 161,182 Vehicle Replacement Fund Balance (Fund 75) 754,057 Information Technology Replacement Fund Balance (Fund 76) 49,882 Total Reserves $ 7,701,667 City Manager Kolbow requested that the Council provide direction regarding the proposed Budget FY 2025-2026 and stated that it was staffs intention to bring the budget for Council approval at the June 2nd regularly scheduled Council meeting. After discussion there was Council consensus that the budget document was well done and expressed appreciation to staff for their attention to detail and their efforts to maintain Joint City Council and Successor Agency to the Calimesa Redevelopment Agency Action Minutes of the Budget Workshop Special Meeting of May 19, 2025 3:00 p.m. Page 3 of 4 a balanced budget and to allocate the $75,000 reserved for Parks and Trails for the purpose of hiring a consultant to review/update the current trails map master plan. There was further Council consensus to have future discussions on the security and cameras in the city's parks, as well as a review of the City's Commissions and Boards and their respective duties. ADJOURNMENT Meeting was adjourned at 4:53 p.m. to the Regular Meeting of the City Council on Monday, June 19, 2024 at 6:00 p.m. MOTION COUNCIL MEMBER MANLY, SEÇONDED BY Respectfully Submitted, COUNCIL MEMBER CUNDIEFF CARRIED 4-0-1- AU O(MAYOR PRO TEM CERVANTEZ WAS ABSENT) TO APPROVE THE MINUTES OF MAY 19, 2025 SPECIAL BUDGET WORKSHOP AS PRESENTED Darlene Gerdes, City Clerk APPROVED: June 16, 2025 OF - / a L J / ACORPORATED December 1, 1990 STATEOF CLPORHIE Joint City Council and Successor Agency to the Calimesa Redevelopment Agency Action Minutes of the Budget Workshop Special Meeting of May 19, 2025 3:00 p.m. Page 4 of 4