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HomeMy WebLinkAboutItem No. 6.2 Update on Fiscal Year 2025-26 Measure Z BudgetPage 1 of 3 REPORT TO MEASURE Z CITIZENS COMMITTEE To:Honorable Chair and Members of the Measure Z Citizens Committee From:Jason Simpson, City Manager Prepared by:Brendan Rafferty, Assistant Director of Administrative Services Date:February 23, 2026 Subject: Update on Fiscal Year 2025-26 Measure Z Budget Recommendation Receive and file an update on the Fiscal Year 2025-26 Measure Z Budget Spending Plan. Background On November 3, 2020, residents of the City of Lake Elsinore voted in favor of Measure Z, a locally controlled one cent, or one percent, transactions and use tax to generate unrestricted general fund dollars to address City service, public safety, and local recovery needs. Measure Z will soon be formally codified in Chapter 3.30 of the Lake Elsinore Municipal Code, which is available online on the City's website. The Measure Z Citizen Committee's primary role is to independently review and provide advice and guidance concerning the expenditure of Measure Z revenues. The Committee is tasked with meeting, in a public forum, at least twice each calendar year to ensure funding is being used in a manner consistent with the established goals and needs of the community. Specifically, the Committee must annually review and report on the City's proposed and actual expenditure of proceeds generated by the transactions and use tax along with reviewing the independent annual audit of those revenues and expenditures prepared by a Certified Public Accounting firm. The Committee's report shall then be submitted to the City Council for review and discussion at the next City Council meeting. Update on Fiscal Year 2025-26 Measure Z Budget Page 2 of 3 Discussion Before the passage of Measure Z, the City engaged residents and businesses as part of its Let's Talk Lake Elsinore campaign to identify the community's needs. Based on this effort and ongoing community opinion surveys, residents identified the following spending priorities: Provide quick responses to 911 emergencies Address Homelessness Fix streets and repair potholes Keep public areas clean, healthy, and free of graffiti Provide law enforcement services including neighborhood patrols, crime prevention, investigations Make improvements to Lake Elsinore’s water quality, beaches, and recreational amenities Prepare for public health emergencies, wildfires, natural disasters, and other large-scale emergencies Improve economic development and attract new employers and businesses to Lake Elsinore Revitalize outdated commercial areas of the City Expand and improve network of trails and bike lanes Build a new library The City has identified Measure Z projects for the Fiscal Year 2025-26 as outlined in the attached Measure Z Budget Spending Plan based on the priorities identified by the community. As shown, staff estimated the City will have approximately $25.6 million in Measure Z funds for the Fiscal Year 2025-26. This amount includes fund balance, revenues and investment earnings. The table below is a summary of budgeted expenditures: Expenditures to date are shown in Exhibit A. Most of the projects have not yet started or are in design. Additionally, operating expenditures are transferred at the end of the year. Update on Fiscal Year 2025-26 Measure Z Budget Page 3 of 3 Fiscal Impact The expenditures as outlined in the Fiscal Year 2025-26 Measure Z Budget Spending Plan are part of the Fiscal Year 2025-26 Annual Operating Budget and Fiscal Year 2025-26 to 2029-30 Capital Budget. Attachments Attachment 1 – Statement of Revenues, Expenditures, and Changes in Fund Balance for Measure Z CITY OF LAKE ELSINORE, CALIFORNIA SELECTED ANALYSIS OF PROGRAM & CAPITAL COSTS - MEASURE Z FY2025-26 BUDGET SPENDING PLAN UPDATE As of December 31, 2025 DESCRIPTION Annual Amended Budget Total Activity Percentage of Budget Fundbalance @ June 30,2025 8,495,348$ 8,495,348$ 100% Estimated Revenues 16,737,690 5,479,064 33% Estimated Investment Earnings 350,000 120,898 35% 25,583,038$ 14,095,310$ Expenditures by Department: General Government: Lake and Community Operations Homeless - Staffing - Assistant Director (50%)135,100 67,550 50% Homeless - Staffing - Homeless and Housing Analyst 175,760 0% Homeless - Staffing - Management Analyst (50%)87,730 43,865 50% City Clerk City Attorney City Manager Administrative Services Finance Human Resources Public Safety: Police Services Measure Z - Service Increases Increased Patrol Hours 2,226,300 1,113,150 50% Dedicated Positions Increases 1,455,060 727,530 50% Accident Investigation Cars 910,580 455,290 50% Other Overtime Increases and others 127,810 63,905 50% Homeless Team Homeless - Staffing - 2 Community Patrol Offers 790,710 395,355 50% Homeless - Staffing - 1 Community Service Officer II 164,390 82,195 50% Other Overtime Increases and others Fire Services Medic Squad Personnel - Station 10 Downtown 2,612,590 1,306,295 50% Quint #97 Replacement 640,000 0% Animal Services Field Services 290,000 145,000 50% Emergency Services Emergency Prepardness - Staffing - 1 Emergency Services Manager 278,780 139,390 50% Emergency Prepardness - Operations 166,760 0% Community Development: Planning General Plan Update 400,000 42,984 11% Building & Safety Code Enforcement Homeless - Staffing - 1 Code Enforcement Manager 328,680 164,340 50% Homeless - Staffing - 1 Code Enforcement Supervisor - 50%95,300 47,650 50% Homeless - encampments, cleanup, etc.250,000 0% Public Services: Engineering Traffic Engineering - Staffing - 1 City Traffic Engineer 150,600 75,300 50% Homeless: Emergency Housing Street Outreach 272,580 0% Supportive Services 340,000 0% Repair & Maintenance 120,980 0% Lake Management Water Quality Control Projects 1,143,600 680,652 60% REVENUES OPERATING & PROGRAM SPENDING PLAN 13,163,310$ 5,550,451$ 42% Amphitheater 7,900,000 958 0% Annual Citywide Sidewalk Survey and Improvements 201,610 132,823 66% Auto Center Bridge Drive Retrofit 350,000 30,154 9% Broadway Tract Paving 197,090 3,856 2% Downtown Main Street Parking and Landscape Improvements 160,000 159,336 100% Electric Vehicle Charging Stations 14,970 0% I-15 Franklin Street Interchange Improvements 510,000 969 0% I-15/Main Street Interchange Landscape Improvement 1,542,560 8,194 1% Lakeshore Sidewalk Improvements 745,320 603,925 81% Mountain & Avocado Way Tract Paving Rehabilitation 5,000 0% Murrieta Creek Regional Trail Connection 111,434 20,960 19% Railroad Canyon Road Safety Improvements 500,000 0% Spring Street Sidewalk 30,000 28,600 95% Terra Cotta Road Street Improvements 151,744 8,194 5% 12,419,728$ 997,969$ 8% Totals 25,583,038$ 6,548,420$ 26% CAPITAL PROJECT SPENDING PLAN