[{"_1":2,"_109":-5,"_110":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,73,85,97],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":-5,"_68":69,"_70":-5,"_71":56,"_72":56},"mediaId",6543561,"mediaKeyId","3479640-d7eb0710828362b5a06720cddee2385b","parentId",3479640,"title","Temecula staff present balanced FY2025–26 budget but warn of structural shortfall in decade outlook","audioSeconds",287,"startMs",92000,"endMs",379000,"viewUrl","/Search/View?dp=1&key=3479640-d7eb0710828362b5a06720cddee2385b&start=92&end=379","thumbnailUrl","https://assets.pipeline.soar.com/3479640-d7eb0710828362b5a06720cddee2385b/thumbnail_92000.jpg","articleUrl","/articles/6543561/Temecula-staff-present-balanced-FY202526-budget-but-warn-of-structural-shortfall-in-decade-outlook","mediaUrl","https://secure.pipeline.soar.com/6543561-54560e202631a5c8fc617ca33a582604/orig.mp4?Expires=1771157661&Signature=LZNlItnhP4h0u7-hT8vsgYikpxe75L4M77A-pNzVLWizfc5687x3guALdoabkIWuyO4VF5SsLPbeDZOtS4deokIuOtRsLkKov6Fmhc8KDrRsaJQX~2Z7lThlOwEdZ5Lu7t0EkMdzfR341JTpj-dxfYcQ-XmozS5F7r6Sjyvbt80rUUC4MiD0NscSauBfDvqPPgjGWZ3UwBejPeBLNkpwIyc3YgwKT4V4uC9X71nOiDYNcMlOrNeEDWdiB2TrBUhLK7xas~YHfbgCkuxXDJqGi4JAZz8BMRXtlbMh5FCh5FoMdDlGozp6bxcD9HTm-OfyXS7byzGj~~xBqVadRslqTg__&Key-Pair-Id=KUT5TJCACFTXG","author","","date","2025-05-24T02:25:09.033Z","article","Temecula City Manager Aaron Adams told the City Council at a May budget workshop that the proposed operating budgets for fiscal year 2025–26 are balanced, while also warning the council about longer-term risks.

\"The city's operating budget is balanced, the community service budget is balanced, and we have also projected a balancing of our 5 year forecast,\" Adams said during the presentation, while adding that revenue pressures and recent contract-driven public safety cost increases required staff to rework the draft budget.

Director of Finance Jennifer Hennessy presented the city's 10-year fiscal model and said the principal risk is that revenue growth is not keeping pace with expenditure growth. \"Revenue growth ranges between 1.4 to 3.3% per year,\" Hennessy said. \"Operating expenditures, however, are growing steadily between 3 to 5.3% per year.\" She noted the model shows a structural imbalance beginning in year 7 and that, under the status quo scenario, the city would be unable to meet its 25% reserve requirement by year 9.

Why it matters: staff said Temecula remains fiscally healthy in the near term with fully funded reserves and a funded portion of the capital improvement program (CIP), but the 10-year sensitivity analysis shows policy choices made now will change the timing of a structural deficit. Councilmembers emphasized public safety and infrastructure as top priorities while discussing strategies to delay or reduce the projected imbalance.

Most immediate budget drivers

- Contracted public safety cost increases: Adams told the council that a Riverside County labor agreement and related contract changes will increase the city's sheriff contract rate and Cal FIRE contract. The city manager said county law-enforcement contract rates will rise roughly 19.5% over the next 2'\u0012 years, and the city's CAL FIRE contract would rise by about 25.6%, adding roughly $2 million annually in the sheriff contract alone.

- Revenue make-up and reserves: The general fund revenue projection for FY2025'26 is $114 million, with sales taxes providing about 40% of general-fund receipts. The city projects an ending general fund balance of $35.5 million and reserves fully funded at $26.7 million.

- Ten-year sensitivity scenarios: Hennessy walked the council through alternative scenarios that shift the structural deficit. Scenario changes including modest TCSD revenue increases and adjustments to public-safety staffing can push the imbalance later into the decade; more aggressive combinations can push the shortfall out to year 10 in the model.

Council direction and next steps

Councilmembers and staff reached several work directions and planning steps during the workshop:
- Staff recommended, and the council agreed to schedule, a late-summer CIP prioritization workshop to review the 97 projects in the draft five-year CIP and set council priorities for funding and delivery.
- The council supported forming a strategic fiscal ad hoc to work with staff over the next eight months to develop a multi-year work plan addressing Temecula Community Services District (TCSD) fiscal challenges and balances between district programming and general-fund public-safety demands.
- The council expressed support for continuing the city's debt-paydown strategy and for a staff proposal to accelerate pension liability paydown; several members backed an aggressive payoff scenario that would shorten the remaining schedule and reduce interest costs.

What the council emphasized: multiple councilmembers said public safety remains the top priority. Councilmember Ron said the city should \"pay now or pay a lot more later\" when discussing wildfire and other risk management; Councilmember Stewart urged using one-time available funds to accelerate the pension payoff; Councilmember Zach Schwenk and others urged careful, data-driven evaluation of new programs and spending before committing to recurring expenses.

Outlook: staff said the proposed operating budgets are balanced for FY2025'26 and that CIP spending remains aggressive and mostly funded, but that the council must decide whether to adopt course corrections now (for example, revenue measures, service-level changes, or TCSD scope changes) to blunt a later structural imbalance shown in the 10-year model.

","mediaType","Video","parentTitle","2025 Temecula Budget Workshop | Fiscal Outlook, Strategic Investments & Community Priorities","oneSentenceSummary","Temecula City Manager Aaron Adams told the City Council at a May budget workshop that the proposed operating budgets for fiscal year 2025'26 are balanced, while also warning the council about longer-term revenue pressures.","taxTitle","taxId",0,"location","headline","shortSummary",{"_33":74,"_35":36,"_37":38,"_39":75,"_41":76,"_43":77,"_45":78,"_47":79,"_49":80,"_51":81,"_53":82,"_55":56,"_57":58,"_59":83,"_61":62,"_63":64,"_65":84,"_67":-5,"_68":69,"_70":-5,"_71":56,"_72":56},6543549,"Council agrees to short extension of Care Solace mental-health navigation while city explores hospital partnership",4093,3289000,7382000,"/Search/View?dp=1&key=3479640-d7eb0710828362b5a06720cddee2385b&start=3289&end=7382","https://assets.pipeline.soar.com/3479640-d7eb0710828362b5a06720cddee2385b/thumbnail_3289000.jpg","/articles/6543549/Council-agrees-to-short-extension-of-Care-Solace-mental-health-navigation-while-city-explores-hospital-partnership","https://secure.pipeline.soar.com/6543549-03adf97ea981bf72118cd86fc05bd313/orig.mp4?Expires=1771157661&Signature=Ll20AXUprQTZK9hMUgq5MkbvBysKpfnyZB2KJrwk1gqZM5XIJ2XuhbJwqJ4FDu0XTspxsbWTxHNq0knF6VUSzSpFB9GrH4d9L1QQB96txkPazZ-CiPDxei6eiPyLDcgk6m8jdsaIPTwha22fAohA1fWpENYvKabJoVLqYbpLgBNbbghFrNcx70xlpsvsjbqFDti6DBkuc4cXz85VltmK1c64duUAu5r3hBuJ2eiEwies9Ydl5MUF~NPCpQWJ5VvgcH3~wDEvdYw1SW1jMSnkJQK-AzHJ7fA-Z1FkBULQJvyoOS~ZzIJix2VEzwvipRHRaULr333Ytc5MrQvX5ZUFfQ__&Key-Pair-Id=KUT5TJCACFTXG","The Temecula City Council agreed by consensus at its budget workshop to keep the Care Solace mental-health navigation subscription in place for an interim period while staff pursues discussions with regional partners.

Background: the city initiated a one-year pilot of the Care Solace mental-health navigation service in 2024. Staff reported the vendor offered a discounted second-year price of $70,000. Director of Community Services Erica Russo and other staff described utilization metrics and said the program had supported residents with teletherapy and referrals; the presentation noted that Temecula Valley Unified School District covers school-enrolled students and their immediate family members under a separate contract.

Council direction

- The council instructed staff to return a contract amendment or a short-term renewal with a six-month term and an option to extend another six months while staff continues outreach to Palomar/Temecula Valley Regional Hospital (and other local partners) about a potential public-private partnership or other cost-sharing arrangements.
- Mayor Pro Tem Alexander, Councilmember Ron and others voiced that, given the program's use and mental-health access concerns, the city should avoid an abrupt loss of service while partners are engaged. Councilmember Zach Schwenk said he preferred private-market solutions but did not block the short-term extension proposal.

Why it matters: staff said Care Solace connects Temecula residents to mental-health services quickly and that, in one cited month, the service assisted individuals with urgent needs including suicidal ideation. Councilmembers expressed particular concern about losing an access point if the contract were allowed to lapse before partners can assume responsibility.

Next steps: staff will draft an interim contract consistent with the council's direction and continue outreach to the hospital and other prospective partners; staff will also return utilization metrics and any partner proposals to the council for a final determination.","Temecula's City Council signaled consensus to extend its contract with Care Solace for an interim period (six months with an optional six-month extension) while staff continues outreach to the local hospital and evaluates cost-sharing or other partnership alternatives.",{"_33":86,"_35":36,"_37":38,"_39":87,"_41":88,"_43":89,"_45":90,"_47":91,"_49":92,"_51":93,"_53":94,"_55":56,"_57":58,"_59":95,"_61":62,"_63":64,"_65":96,"_67":-5,"_68":69,"_70":-5,"_71":56,"_72":56},6543553,"Temecula draft five-year CIP lists 97 projects and $894 million in costs; $270 million remain unspecified",154,2571000,2725000,"/Search/View?dp=1&key=3479640-d7eb0710828362b5a06720cddee2385b&start=2571&end=2725","https://assets.pipeline.soar.com/3479640-d7eb0710828362b5a06720cddee2385b/thumbnail_2571000.jpg","/articles/6543553/Temecula-draft-five-year-CIP-lists-97-projects-and-894-million-in-costs-270-million-remain-unspecified","https://secure.pipeline.soar.com/6543553-3562034725f2ae7ef53a5704e00e3007/orig.mp4?Expires=1771157661&Signature=f-cGLRDLQX42yrPSxcCnK9A4lUE6JLdnVAQtisXelu2JH93dN-dvd-U8xqgyBpJWj83y0S4OFkSSPVuElsXVfA9UWkHcCe5K3LFYSZRe8NV8EYdgEwIGi-N7jLm7V3ek5QMTy8Ho2ztxKcddgWaCcjCAr0Kuv~sr3JIsoK75Jg~p5NitwZqLjRDAGcg9S2yFRVAc6yyp8LLVBFe48hpVvuN2O9cC6kZqnzxeUH2OgnMRCSdLb7o7mDUZG9qJNVrBpzOHYKtIxECQ9nff4fWfEUJA3baKRGYVA-vA4fof5SH8BNfvPq04pTpZ2E4Ix92ANtNQEFU~PgwsrVvW01ytdw__&Key-Pair-Id=KUT5TJCACFTXG","Director of Public Works Ron Marino presented the draft five-year Capital Improvement Program (CIP) for fiscal years 2026'30 and told the council the plan contains 97 projects totaling roughly $894 million in preliminary costs.

Staff reported the city has identified funding sources covering about $624 million (70%) of the total; the remaining $270 million is currently unspecified. Marino said staff conducted a program-wide reprioritization to fund several near-term, high-profile projects and that the review produced reductions, deferrals or cancellations for several lower-priority items.

Notable projects and status

- French Valley Parkway Phase 2: completed and opened to the public in April; Phase 3 design contract awarded to T.Y. Lin International and environmental revalidation under way.
- Pavement rehabilitation: approximately $12 million planned over two years for repaving Rancho Way, Felix Valdez and Santiago roads.
- Overland Drive bridge (Merida Creek): project leveraging large grant participation (about 88% grant-funded) to connect Enterprise Circle to Diaz Road; redesign and rescoping discussed.
- Parks and recreation projects: Ronald Reagan Sports Park skate plaza, hockey rink renovation (construction started in April), playground renovations and a 17-court pickleball complex at Ronald Reagan Sports Park.
- Fire station improvements: Fire Station 73 (gym and apparatus bay additions) and Fire Station 84 interior renovations are in design or planning.

Why it matters: the CIP funds long-lived infrastructure (streets, drainage, bridges, parks and public buildings). Staff told the council that rising construction costs required reprioritization and that several previously planned projects were deferred, reduced in scope, moved to a \"futures\" list or cancelled.

Council action: the council agreed to schedule a dedicated late-summer CIP workshop to review all 97 projects, discuss funding shortfalls, and assign formal priorities to guide the adopted five-year plan.

Next steps: staff will prepare materials and recommended project prioritization options for the workshop and return grant-eligibility analysis and funding scenarios for council consideration.","Public Works Director Ron Marino presented a five-year CIP (FY2026'30) with 97 projects and approximately $894 million in total costs; staff said $624 million of funding is identified and $270 million remains unspecified. Council directed a dedicated CIP prioritization workshop.",{"_33":98,"_35":36,"_37":38,"_39":99,"_41":100,"_43":101,"_45":102,"_47":103,"_49":104,"_51":105,"_53":106,"_55":56,"_57":58,"_59":107,"_61":62,"_63":64,"_65":108,"_67":-5,"_68":69,"_70":-5,"_71":56,"_72":56},6543557,"Temecula Community Services District budget flagged as growing faster than own revenues; council asks for multi-year TCSD work plan",432,2198000,2630000,"/Search/View?dp=1&key=3479640-d7eb0710828362b5a06720cddee2385b&start=2198&end=2630","https://assets.pipeline.soar.com/3479640-d7eb0710828362b5a06720cddee2385b/thumbnail_2198000.jpg","/articles/6543557/Temecula-Community-Services-District-budget-flagged-as-growing-faster-than-own-revenues-council-asks-for-multi-year-TCSD-work-plan","https://secure.pipeline.soar.com/6543557-fb559deb57e9f281e269dfffd917bf7f/orig.mp4?Expires=1771157661&Signature=RxlmB3LpTxOn0grB4ENEa29b4nu4F29K2RZxwwrCHyXL-CLw3uz8qtKk4iqIRQCov5oxiXX7vbFdMg4XQ1VFHZh3l9YqnVEeNs~z4N-p4tiU6h4McIWuFk90jnaQlQEVdQDAf-IfIzyo5FcjoSVy79uEUciSxVHz4vwinlrBtTcGsjxBVHJMFj6IFzu0G6005m28ZODAk3R5niXAEGd-6IAl93JafbQdlgZh9D~EVIRaG9hEX-yGL0DIGpvwGEE~Bhtc5X39xqIvD6bz28k5oXKetLWXA0HNbIjTffMpdnVDr94BCgYy1r3MMno28UTmFELaC-CZNt4VsnqPCAf6oA__&Key-Pair-Id=KUT5TJCACFTXG","Director of Community Services Erica Russo presented highlights of the Temecula Community Services District (TCSD) budget and told the council the district is a major provider of parks, recreation, arts, library and human services in the city.

Russo said TCSD operates 11 facilities, runs signature events and maintains 42 parks; the district's FY2025'26 operating expenditures are projected at $21.3 million with program revenue of about $2.9 million. Much of TCSD's funding comes from Measure C (parcel tax) and Measure S (transactions and use tax): Russo said Measure C is expected to generate about $1.9 million and Measure S contributes roughly $16.5 million toward TCSD operations in the adopted accounting treatment.

Why it matters: TCSD programming and facilities are widely used and highly rated in commission surveys (Russo cited a 91% satisfaction rate), but the district's expenditure growth is outpacing its program revenue. That dynamic leaves fewer dedicated resources for other city priorities unless the council adjusts expectations, fees or funding allocations.

Services, costs and outcomes

- TCSD runs recreation, arts and culture, and human-services programs; aquatics and library operations are significant line items.
- Russo reported roughly $1.7 million dedicated to homelessness prevention and outreach (not including RSO and fire support), and staff said the city's efforts contributed to 43 people exiting unsheltered status so far this year and removal of 48 dangerous encampments.
- TCSD also handles more than 40 signature events annually; staff said the Temecula Rod Run brought roughly 40,000 attendees to Old Town on each of two event days this year and that the city spent about $226,000 producing that event (about $151,000 of that cost was staffing).

Council response and next steps

Councilmembers said TCSD is an important quality-of-life function but asked staff to develop multi-year options to constrain future expense growth and identify opportunities for cost recovery. City staff proposed charging the city council's strategic fiscal ad hoc subcommittee to work with TCSD staff over the next eight months to develop a TCSD work plan. Councilmembers agreed with that approach.

Additional clarifying points

- Staff said TCSD program revenue (fees and registrations) accounts for a small portion of total district revenue; in the proposed FY2025'26 budget Measure S and Measure C account for the majority of support.
- Director Russo said staff will continue to examine cost-recovery opportunities and report back to the council and the ad hoc subcommittee.

","At the budget workshop TCSD Director Erica Russo outlined TCSD operations, staffing, fees and funding sources (Measure C and Measure S). Staff and council agreed to charge a strategic fiscal ad hoc to develop a multi-year TCSD work plan to address rising program costs and limited program revenue.","actionData","errors"]

Article not found

Temecula staff present balanced FY2025–26 budget but warn of structural shortfall in decade outlook

Council agrees to short extension of Care Solace mental-health navigation while city explores hospital partnership

Temecula draft five-year CIP lists 97 projects and $894 million in costs; $270 million remain unspecified

Temecula Community Services District budget flagged as growing faster than own revenues; council asks for multi-year TCSD work plan