Menifee Council approves FY 2025–26 midyear budget adjustments, boosts CIP and reclassifies several positions

Acting Mayor Carwin and the Menifee City Council voted 4–0 on Feb. 25 to adopt a package of midyear adjustments to the fiscal year 2025–26 budget, approving roughly $4.2 million in revenue and appropriation changes that include a $3.08 million transfer to the capital improvement program and multiple personnel reclassifications.

Director Hickey introduced the midyear review, saying the adjusted budget currently shows $102,200,000 in revenues and $106,100,000 in expenditures after carryovers and council‑approved appropriations. "So all in all, that's just under $4,400,000 of revenue adjustments that we are bringing forward for consideration today," Hickey said, summarizing the net set of revenue changes being proposed.

Revenue changes singled out in the presentation included a proposed $300,000 increase in vehicle license fee revenue after updated assessed valuation and a $395,000 development revenue adjustment, of which staff said roughly $250,000 would be offset by a related professional services appropriation. Hickey also described a conservative $550,000 projected increase in investment income for general and quality of life funds.

On the expenditure side, staff described roughly $4.2 million in requests across operating, personnel and capital categories: about $571,000 directed to operating and maintenance, $109,000 to prorated personnel adjustments for Feb.–June to comply with minimum wage changes and internal reclassifications, $457,000 for one‑time capital/studies and $3,000,000 for CIP program requests. Margarita, presenting the expenditure analysis, said the requests align with the city's strategic goals and noted targeted operational savings to fund smaller items such as a $10,000 pilot microchip/spay‑neuter program and $70,000 for increased animal sheltering services.

The council also reviewed staffing adjustments. City staff said five existing reclassifications were proposed without adding authorized full‑time equivalents (the authorized FTE count remains at 336.5). The changes include promotions and title changes such as deputy city manager to assistant city manager, economic development manager to economic development director, public information officer to director of communications and a reclassification to senior public works inspector; the prorated cost for Feb.–June was presented as $109,838. When Council member Dynas pressed for more detail, he said he was "a little disappointed that you were asking council to approve all these new positions" without an org chart; an unnamed staffer apologized and said an organizational chart and job descriptions would be provided in the future.

Public works director Nick Fiddler presented the CIP update and the department's midyear requests, noting the city carries a large CIP backlog and many projects in design or construction. Among the midyear CIP requests, staff sought $850,000 for citywide traffic signal safety improvements (CIP 2401) to accommodate design complications and retrofits related to signal back plates funded in part by an HSIP grant; $580,000 from Quality of Life funds to complete the Evans Road/Craig Avenue traffic signal near Paloma High School (CIP 2505); $1,050,000 to finish the Lazy Creek AC resurfacing package (CIP 2507); and $600,000 for proactive pavement maintenance and higher‑use corridor resurfacing. Fiddler said the total midyear CIP and project funding request was $33,080,995.

Council asked how projects would be funded; Fiddler confirmed that the additional CIP funding would come from available sources such as Measure A (countywide), SB 1 (state), gas tax and existing account balances rather than a new general fund appropriation. "We're asking for a midyear request of $850,000," Fiddler said of the traffic signal safety package.

After brief council discussion and no public comment, a single motion and second were offered to approve the full seven‑part staff recommendation, which included adopting a budget amendment resolution for FY 2025–26 midyear adjustments, updating authorized position listings and salary schedules, amending executive and confidential personnel resolutions, authorizing finance to process transfers of direct personnel expenditures to CIP where appropriate, and receiving a CIP update. The motion passed 4–0.

The council adjourned at 4:58 p.m.