FISCAL YEARS - 2023/24 & 2024/25
TABLE OF CONTENTS About Moreno Valley 3 Balancing Budget 4 Strategic Plan Priorities 5 Budget Highlights 6 How To Get Involved 8 Budget At A Glance 9 General Fund Summary 9 Revenues 10 Property Tax 10 Sales Tax 11 Utility Users Tax 12 Expenses 13 City Staffing 13 Public Safety Expenses 14 Capital Improvement Projects 15 Infrastructure 15 Community Engagement 16 Budget Assumptions/Economic Future Concerns 17 Hire MoVal 18 San Francisco Los Angeles Moreno Valley CITIZENS’ GUIDE FISCAL YEARS - 2023/24 & 2024/25 Citizens’ Guide | 2
ABOUT MORENO VALLEY The mission of the Economic Development & Housing Department (EDHD) is to improve the quality of life for Moreno Valley residents by creating jobs, attracting new businesses, and expanding existing businesses. The ED Team has a can-do work ethic that emphasizes customer service. Let our team help your project with these free services: site selection, business attraction & concierge project assistance, and business support. Vacant ED & H Director 951.413.3460 Key Contacts Michele Patterson EDD Manager 951.413.3030 | [email protected] Angel Galache Deputy City Manager 951.413.3457 | [email protected] www.morenovalleybusiness.com GENERAL INFORMATION Date of incorporation December 3, 1984 Form of government Council/Manager Members of City Council 5 Area 51.3 sq. mi. Population 213,574 Street striping lane miles 580 No. of street lights 12,444 No. of traffic signals 198 No. of parks/facilities/trails 42 Maintained park acres 675 No. of fire stations 7 No. of police stations 1 No. of police sub-stations 2 No. of career positions 402 EXECUTIVE MANAGEMENT City Manager Mike Lee Assistant City Manager (Administration) Brian Mohan Assistant City Manager (Development) Michael Lloyd Chief Financial Officer Vacant City Attorney Steve Quintanilla City Clerk Jane Halstead Community Development Director Sean Kelleher Economic Development & Housing Director Vacant Fire Chief Jesse Park Human Resources Director Vacant Parks & Community Services Director Jeremy Bubnick Police Chief Kenneth Reichle Public Works Director/City Engineer Melissa Walker CITY COUNCIL Mayor Ulises Cabrera Mayor Pro Tem-District 2 Ed A. Delgado Council Member-District 1 Elena Baca-Santa Cruz Council Member-District 3 David Marquez Council Member-District 4 Cheylynda Barnard POPULATION INFORMATION Population 213,574 Est. Avg. Persons per Household 4.2 50,000 100,000 150,000 200,000 1985 1986 19871988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20242025 Nearly 29,000 jobs have been created in the past 10 years according to the newest UC Riverside jobs report. ECONOMIC DEVELOPMENT 366% Growth Population MAJOR EMPLOYERS March Air Reserve Base 8,000 Amazon 6,446 Moreno Valley Unified School District 3,782 Riverside University Health Systems Medical Center 3,600 Ross Dress for Less 2,400 Aldi 1,900 Moreno Valley Mall 1,500 Deckers Outdoor 1,400 Kaiser Permanente Community Hospital 1,400 Harbor Freight Tools 1,257 Citizens’ Guide | 3
Moreno Valley has approved a two-year balanced budget in June of this year. Despite continued takeaways of local funds by the State and increased costs for services provided by Riverside County, the budget is fully balanced. It represents ongoing investments in the City’s future while maintaining the award-winning sound fiscal stewardship and conservative legal safeguards, which have marked Moreno Valley as one of the most fiscally fit cities in the Nation. The adopted General Fund budget for 2023/24 totals $152.8 million and the overall budget exceeds $304.6 million. The spending plan includes $28.2 million in capital improvements to ensure the repair and replacement of aging local infrastructure within our current financial capabilities. This budget is based on the principles of Momentum MoVal, a strategic plan developed by the City Council to ensure that community priorities are reflected in planning decisions. The City will continue active outreach to assess community priorities into the future. While Moreno Valley’s fiscal position remains strong, the City is keeping a watchful eye on areas of concern such as the potential for slower economic growth and increased costs for public safety services provided by Riverside County. As the City continues to add residents, infrastructure, and services, needs will also grow as new facilities and roadways are constructed to meet community needs. Through diligent financial management, the City will continue to focus on financial stability and community quality of life, despite state and federal policies that potentially affect the funding Moreno Valley and other California cities receive. While the continued State takeaways and cost increases imposed by the County can limit the City’s ongoing ability to sustain services and programs, the current budget effectively preserves services that are high priorities for Moreno Valley residents. The City of Moreno Valley Despite State and Local Pressures BALANCES BUDGET Upon request, this news release will be made available in appropriate alternative formats to persons with disabilities, in compliance with the Americans with Disabilities Act of 1990. Any person with a disability who requires a modification or accommodation in order to participate in this meeting should direct such requests to the ADA Coordinator at 951.413.3350 or [email protected] at least 72 hours before the meeting. The 72-hour notification will enable the City to make reasonable arrangements to e n s u r e a c c e s s i b i l i t y t o t h i s m e e t i n g . To view our budget and other financial documents, visit: www.moval.org/budget Citizens’ Guide | 4
MORENO VALLEY’S STRATEGIC PLAN PRIORITIES The City’s FY 2023/24 - 2024/25 Annual Budget addresses the priorities listed in the Momentum MoVal Strategic Plan. While advancing these important priorities, the budget continues to reflect a strong fiscal balance that not only addresses our communities’ priorities but does so by maintaining the fiscal stewardship that earned us recognition as the 3rd most fiscally strong city in the nation. ECONOMIC DEVELOPMENT BEAUTIFICATION, COMMUNITY ENGAGEMENT, & QUALITY OF LIFE LIBRARY PUBLIC SAFETY YOUTH PROGRAMS INFRASTRUCTURE Meet the current and emerging needs of Moreno Valley by expanding the local economy through: new business opportunities, job creation, strategic partnerships, and workforce development. Provide proactive business attraction, small business development, and business support services that grow the City’s economic base to enhance the quality of life for Moreno Valley residents. Promote an active and engaged community where we work together to beautify our shared environment, care for each other, and enjoy access to cultural and recreational amenities that support a high quality of life for all of our residents as envisioned and articulated throughout the City’s adopted General Plan. Deliver library services that empower our residents through open access to knowledge, employing both traditional and contemporary methods at a level that is appropriate for a diverse community of over 200,000 citizens. Provide effective public safety services to enhance the Quality of Life for Moreno Valley families and to attract businesses to our community. Public safety priorities focus on reducing crime through traditional & innovative policing methods, preparing our community for emergencies, protecting life and property and exploring cost effective solutions. Improve the lives and futures of our City’s youth by expanding healthy lifestyle choices and learning opportunities. Build systems that continually and effectively assess the conditions affecting families in Moreno Valley, and develop context appropriate strategies responsive to those needs that build on community strengths. Manage and maximize Moreno Valley’s public infrastructure to ensure an excellent quality of life, develop and implement innovative, cost effective infrastructure maintenance programs, public facilities management strategies, and capital improvement programming and project delivery. Citizens’ Guide | 5
BUDGET HIGHLIGHTS While maintaining strong budgetary discipline, the FYs 2023/24 – 2024/25 budget advances key Momentum MoVal initiatives in alignment with operational and strategic priorities such as those listed below: ECONOMIC DEVELOPMENT INFRASTRUCTURE LIBRARY Economic Development is part of the foundation to future growth for the City and services for the public. As such, we will continue to invest into attracting business to the City, creating new jobs, and maintaining the quality of life in our community. Budget accomplishments include: • Maintain Economic Development Team efforts to attract, retain, and grow businesses • Continue marketing and outreach efforts • Fund the Business & Employment Resource Center (BERC), which is designated as an America’s Job Center of California • Provide Economic and Community Development staff support The City continues to invest in the infrastructure with a strong emphasis on streets, while living within our means. The City’s last pavement condition index (PCI) was completed in 2018. The overall pavement rating for all of the City maintained streets was 66, which is categorized as “Fair”. However, almost 30% of the City’s streets are rated “Poor” or “Very Poor” having a PCI of 49 or less. Staff recommends that the City address road repairs before conditions worsen and become more expensive to address. Budget accomplishments include: • Program more than $65.4 million of restricted funds over the next two years to fund and maintain infrastructure • Direct $5.0 million allocated for annual street maintenance • Additional $5.6 million from capital project fund investment in pavement rehabilitation each year of this two-year budget • Deliver Capital Improvement Projects (CIP) - $97.8 million of improvements • Complete Vehicle/Fleet replacement • Maintain existing facilities A central objective in the City’s Momentum MoVal Strategic plan is to expand library services to meet the needs of our growing City. Budget accomplishments include: • Pursue design phase of main library renovation (ADA improvements) • Increase broadband connections to better serve customers (WiFi and mobile hotspots) • Provide access to emerging technologies at the libraries (STEAM-based literacy, career advancement, and personal enrichment) Citizens’ Guide | 6
PUBLIC SAFETY QUALITY OF LIFE YOUTH As Police and Fire represent the majority of the City’s budget, the budget focuses on maintaining services while providing some key investments into equipment and service levels where possible. Budget accomplishments include: • Add eight sworn police officers bringing the total sworn officers to 174, which is still below the number of sworn officers in 2010, which was 186. The unmandated national standard is 1officer to every 1,000 residents, which means Moreno Valley should be at 213 officers • Add an additional Fire Squad since 76.5% of calls for service are medical emergencies, non-fire related calls • Maintain the additional investment in Public Safety (Council approved 02/2022) o Fire Squad o Police Motors & Deputies (3) o Police Clinical Behavioral Assessment Team (3) o Community Enhancement Program expansion (1) o Park Ranger Program Expansion • Maintain the number of fire engines in service • Maintain citywide camera system • Drone Program expansion • Provide additional public safety services funded through commercial cannabis business activities Quality of life including community engagement, and keeping parks and other public areas safe and clean continue to be a focus through many aspects of the budget. Budget accomplishments include: • Continue the additional investment in Beautification & Quality of Life (Council approved 02/2022) o Public Works Maintenance Team Expansion (11) o Park Maintenance Team Expansion (9) • Continue Beautify MoVal program • Continue CLiC – Community Learning & Internet Connectivity o Expand our WiFi Garden locations • Expand Homeless to Work & Homeless Assistance program’s outreach element • Continue MoVal Emergency Shelter/Rapid Rehousing program • Continue landscape, lighting, and maintenance support • Complete Laserfiche software upgrade for access to public records • Promote Hire MoVal programs • Provide critical home repair and clean up through grant funding • Continue utilizing the Amphitheatre for concerts and events The City continues to invest millions in our youth and programs. Studies show that between 3 PM and 6 PM, the hours after school ends and before parents typically return home from work, children without an afterschool activity are 3 times more likely to get in trouble. The City conducts more than 500 programs annually, including supervised afterschool park, recreation, and library programs to keep children safe, off the streets and out of trouble, promoting youth programs in Soaring Guides; and maintains 675.77 acres of parkland and trails. Budget accomplishments include: • Host Mayor’s Apprenticeship Program Promoting Employment Development (MAPPED) • Continue Summer at City Hall program - Val Verde USD • Partner with Moreno Valley USD for the Accelerating Success Through Employment, Responsibility, Inspiration, Skills, and Knowledge (ASTERISK) internship program • Fund MoVaLearn Program • Fund tuition assistance through Moreno Valley College’s Promise Initiative • Provide $0.9 million for Crossing Guards • Manage the $9.3 million ASES Grant program • Deliver Child Care program services ($0.9 million) • Direct portions of Community Development Block Grants toward youth services Host Mayor’s Apprenticeship Program Promoting Employment Development (MAPPED) Continue Summer at City Hall program - Val Verde USD Partner with Moreno Valley USD for the Accelerating Success Through Employment, Responsibility, Inspiration, Skills, and Knowledge (ASTERISK) internship program • Fund MoVaLearn Program • Fund tuition assistance through Moreno Valley College’s Promise Initiative • Provide $0.9 million for Crossing Guards • Manage the $9.3 million ASES Grant program • Deliver Child Care program services ($0.9 million) • Direct portions of Community Development Block Grants toward youth services without an afterschool activity are 3 times more likely to get in trouble. The City conducts more than 500 programs annually, including supervised afterschool park, recreation, and library programs to keep children safe, off the streets and out of trouble, promoting youth programs in Soaring Guides; and maintains 675.77 acres of parkland and trails. Budget accomplishments include: Host Mayor’s Apprenticeship Program Promoting Employment Development (MAPPED) Continue Summer at City Hall program - Val Verde USD Partner with Moreno Valley USD for the Accelerating Success Through Employment, Responsibility, Inspiration, Skills, and Knowledge (ASTERISK) internship program without an afterschool activity are 3 times more likely to get in trouble. The City conducts more than 500 programs annually, including supervised afterschool park, recreation, and library programs to keep children safe, off the streets and out of trouble, promoting youth programs in Soaring Guides; and maintains 675.77 acres of parkland and trails. Budget accomplishments include: • Host Mayor’s Apprenticeship Program Promoting Employment Development (MAPPED) • Continue Summer at City Hall program - Val Verde USD • Partner with Moreno Valley USD for the Accelerating Success Through Employment, Responsibility, Inspiration, Skills, and Knowledge (ASTERISK) internship program Citizens’ Guide | 7
HOW TO GET INVOLVED STAY CONNECTED With The City Of Moreno Valley By Visiting Us At (Or join the City of Moreno Valley Email list at www.moval.org/social) WEBSITE w w w . Mo V a l . o r g FACEBOOK c i t y o f m o r e n o v a l l e y INSTAGRAM @ c i t y o f m o r e n o v a l l e y X @ Mo V a l C i t y H a l l YOUTUBE m v t v 3m o r e n o v a l l e y NEXTDOOR.COM Th e C i t y o f Mo r e n o V a l l e y NIXLE.COM Th e C i t y o f Mo r e n o V a l l e y Download the official City app from the Apple or Google App Store! Search City of Moreno Valley and look for this logo to download the app. Engage with your city like never before by downloading the official app. With features like City Hall, Places, News, Calendar, Business Directory and Issue Reporting, you’ll find it easier than ever to stay connected with your City with just a few taps on your mobile device. City Hall and Places sections allow you to have all the important contact and destination information with the click of a button. Learn about your City’s history, demographics, and elected officials. Find parks, facilities, and points-of-interest along with information, phone numbers, maps, and directions. Use the Issue Reporting section to report graffiti, potholes, and other issues directly to the correct City department right from your phone. The issues are tracked from the initial report to resolution in the “My Reports” section and you will receive push notifications as your report progresses. Stay informed and up-to-date on the latest happenings and upcoming events through the News and Calendar sections. Use the Business Directory to find a local contractor, bakery, or new restaurant just around the corner from you. Promote economic development and help ensure your City’s thriving future by shopping and dining right where you live. Use the Message Manager to message the business directly and interact with your local business owners on a more personal level than third-party review sites allow. Where to Find the FY 2023/24 & 2024/25 Adopted Budget The Adopted Budget can be found on the City’s website at http://www.moval.org/budget Citizens’ Guide | 8
BUDGET AT A GLANCE The City’s Budget consists of three major components: General Fund Budget (general operations), Capital Improvement Program (CIP) Budget, and other special/restricted fund budgets. The General Fund Budget is the City’s fiscal operating blueprint. The FY 2023/24 - 2024/25 General Fund budget is based on resource/revenue projections of $152.8 million and $155.2 million, respectively. Departmental operating expenditures are budgeted at $152.8 million and $155.2 million, respectively. The FY 2023/24 - 2024/25 budget furthers the City’s ongoing commitment to fiscal responsibility and effective management. The budget is balanced without the use of contingency reserve funding and concentrates resources on maintaining the existing levels of services and public safety. GENERAL FUND SUMMARY The following graphs provide information regarding the City’s General Fund revenues by budget category and General Fund expenditures by department. The General Fund is comprised of several revenue sources; however, three main sources account for over 68% of the total. These include property tax, sales tax, and utility users tax. Each revenue type is impacted by different activity cycles and economic pressures. For FY 2023/24, the General Fund continues to remain balanced with revenues of $152.8 million and expenditures of $152.8 million. Revenue projections are based on the most current economic data available and budgeted appropriations reflect ongoing efforts to achieve efficiencies. Each City department has carefully evaluated its expenditures, seeking to at least maintain services while reducing costs wherever feasible. City staff continue to monitor economic indicators for changes. FY 2022/23 FY 2023/24 FY 2024/25 General Fund Amended Budget Adopted Budget Adopted Budget Revenues $141,081,959 $152,834,043 $155,190,489 Expenses $145,626,895 $152,830,827 $155,185,813 Variance $(4,544,936) $3,216 $4,676 32.1% Property Tax 24.5% Sales Tax 12.9% Other Taxes 11.5% Utility Users Tax 9.5% Charges for Services 3.7% Licenses & Permits 3.1% Use of Money & Property 1.9% Transfers In 0.4% Intergovernmental 0.3% Fines & Forfeitures 0.1% Miscellaneous 12.7% Financial & Management Services 1.7% 1.6% Non-Departmental Economic Development 1.6% City Manager 1.2% Human Resources 0.7% City Attorney 0.7% City Council 0.6% City Clerk 79.2% Public Safety 40.5% Police 18.9% Fire 10.2% Community Development 9.6% Public Works REVENUES EXPENSES FY2022/23, C o u n c i l a p p r o v e d t h e u s e o f f u n d b a l a n c e f o r t h e e x p a n s i o n o f t h e An i m a l S h e l t e r . Citizens’ Guide | 9
REVENUES PROPERTY TAX The City’s FY2023/24 – 2024/25 Annual Budget addresses the priorities listed in the Momentum MoVal Strategic Plan. While advancing these important priorities, the budget continues to reflect a strong fiscal balance that not only addresses our community’s priorities but does so by maintaining the fiscal stewardship that earned Moreno Valley recognition as one of the most fiscally strong cities in the nation. Property taxes are the City’s largest revenue source and are received through the County’s allocation of taxes received. The following provides a sample of how these taxes are allocated to all public agencies. Sample Report From the Office of The Treasurer-Tax Collector Riverside County, California Sample Report Taxing Agencies (Report) Taxing Authority Tax Rate Taxes Levied 01-0000 General Purpose 1.00000 $2,937.38 04-5476 EMWD IMP DST U-22 0.01000 $29.38 04-5301 MWD East 1301999 0.00350 $10.28 03-9101 Riverside City Community College 0.01478 $43.42 03-4201 Moreno Valley Unified School 0.09864 $289.74 68-5402 EMWD STDBY-Combined Charge Fixed Charge $25.00 68-5305 MWD Standby East Fixed Charge $6.94 68-4290 Moreno Valley FED Mandated NPDES Fixed Charge $123.96 68-4285 MV LMD 2014-02 Landscape Fixed Charge $170.10 68-4274 Moreno Valley CS ZN C Fixed Charge $9.00 68-4272 MV LMD 2014-01 Lighting Fixed Charge $23.00 68-4271 Moreno Valley CS ZNA Fixed Charge $87.50 68-3807 CFD 2004-6 ZN1 Moreno Valley USD Fixed Charge $3,383.14 68-2491 CFD 1 Neighbor PK MNT MO VLY Fixed Charge $141.74 68-1860 CSA 152-Moreno Valley Stormwater Fixed Charge $8.14 68-1377 FLD CNTL Stormwater/Cleanwater Fixed Charge $3.74 Totals 1.12692 $ 7,292.46 Property Tax Taxable Assessed Value $293,738 General Purpose Property Tax 1.00% Other Taxes 0.12692% Fixed Charges $3,982 Total Property Taxes $7,292 Distribution of General Purpose Property Tax County, Education. Other (88.91%) $2,612 City (11.09%) $326 Persons per Household Density 4.20 Tax Per Household Density $78 Assessment Information (Report) Description Value Net Taxable Value $293,739.00 Breakdown of 1% General Purpose Property Tax Education 60.70% Water And Other Services 14.74% County General 13.47% City General Fund 11.09% Total 100.00% Citizens’Guide | 10
SALES TAX The current sales tax rate in Moreno Valley is 7.75%. For every dollar of sales tax generated in Moreno Valley, the City’s General Fund receives only 13¢, which supports critical local services including public safety and infrastructure. Below is an illustration of how a dollar of sales tax is apportioned to the State and County (87%) and 13% to the City. The City anticipates receiving sales tax revenue of $37.5 million during FY 2023/24. This is based on an analysis of the trend in year-to-date tax receipts, macroeconomic conditions, and an examination of local business data. Revenue growth recently has been driven by higher retail gas prices, autos and transportation, restaurants and hotels, and food and drug categories. For Each Dollar Of Sales Tax Revenue STATE GENERAL FUND - 50¢ Supports a wide variety of programs, including K-12 education, higher education, health and criminal justice programs. COUNTY TRANSPORTATION FUNDS - 10¢ Supports traffic congestion relief, traffic safety, STATE LOCAL REVENUE FUND - 20¢ and air quality improvement programs. Supports various health and social service programs such as probation, mental health, drug and alcohol, and foster care programs. STATE LOCAL PUBLIC SAFETY FUNDS - 7¢ Supports local public safety programs MORENO VALLEY GENERAL FUND - 13¢ Supports critical local services including public safety and infrastructure. $5 $0 $10 $15 $20 $30 $25 $35 $40 $45 FY 2018/19 FY 2019/20 FY 2020/21 FY 2020/21 FY 2023/24 ADOPTED BUDGET FY 2022/23 AMENDED BUDGET FY 2024/25 ADOPTED BUDGET MILLIONS 7.00% 7.25% 7.50% 8.00% 7.75% 8.50% 8.75% 8.25% 9.00% CORONA AVERAGE 8.55% HEMET MENIFEE MORENO VALLEY MURRIETA PERRIS RIVERSIDE SAN BERNARDINO TEMECULA WILDOMAR SALES TAX SALES TAX RATE Citizens’Guide | 11
UTILITY USERS TAX As approved by Voters, the Utility Users Tax (UUT) is a 5.75% charge on utility activity in Moreno Valley. The tax is assessed on electricity, energy, water, sewer, cable, wireless and telephone charges. In 2008, the UUT, by direction of City Council and by action of the City’s voters, was reduced from 6% to 5.75% and modernized the definitions of taxable services. Since that time, UUT revenues have been relatively consistent and helped sustain the City during the last recession. The City’s UUT is the third largest revenue source. Annual UUT revenue is projected to be approximately $17.5 million primarily based on utility usage of existing businesses in the City. Staff projects this will remain relatively flat annually. $0 $5 $10 $15 $20 FY 2022/23 AMENDED BUDGET FY 2023/24 ADOPTED BUDGET FY 2024/25 ADOPTED BUDGET FY 2019/20 FY 2020/21 FY FY 2021/22 2018/19 MILLIONS UTILITY USERS TAX Citizens’Guide | 12
CITY STAFFING In 2011, the City had 426 career positions, but due to the Great Recession, that number fell drastically as shown below. Currently, the City has 402 career positions. The ability to maintain lower staffing levels is only due to strategic investments in software to increase operational efficiency. EXPENSES 350 360 370 330 340 380 400 390 410 420 430 FY 2010/ 2011 FY 2014/ 2015 FY 2018/ 2019 FY 2019/ 2020 FY 2020/ 2021 FY 2011/ 2012 FY 2012/ 2013 FY 2016/ 2017 FY 2015/ 2016 FY 2013/ 2014 FY 2017/ 2018 FY 2022/ 2023 FY 2023/ 2024 FY 2024/ 2025 FY 2021/ 2022 TOTAL STAFFING *Excludes police, fire, water, sewer, airport, crossing guards, and animal control. Cities Employees Per FY 2022/23 Number 1,000 Capita of Employees* Glendale 6.9 1,332.0 Riverside 4.6 1,460.7 Ontario 3.0 543.0 Average 2.9 560.7 Rancho Cucamonga 2.9 509.0 Escondido 2.9 441.8 Corona 2.4 373.6 Perris 2.1 166.7 Temecula 1.8 192.5 Moreno Valley 1.6 328.0 Fontana 1.4 295.0 Citizens’Guide | 13
Fire Department Fire services are provided out of seven stations located throughout the City, with the support of 87 firefighters, which includes recent staff allocations for the new fire squad. The FY 2023/24 Fire Department budget exceeds $28.9 million. Based on the current population, this cost is equal to $136 per person or $569 per household and represents 18.9% of the General Fund expenditures. 62 66 64 68 70 72 74 76 78 80 82 84 86 88 FY 2014/15 FY 2018/19 FY 2019/20 FY 2020/21 FY 2015/16 FY 2016/17 FY 2017/18 FY 2022/23 FY 2023/24 FY 2024/25 FY 2021/22 7% Increase In Contract Positions FIRE OPERATION STAFFING Police Department The City has continued to increase the number of police officers based on accountable budgets. While developing the budget, the County Board of Supervisors and the County Sheriff department initially announced impacts that would result in contract increases up to 7.5% or $3 million each of the next two years. This would be a cumulative increase of 15% or $6 million over that time. Although some estimates have been revised, the City must plan for some of these worst case scenarios. The average cost per contracted fully supported Deputy Sheriff is approximately $400,000. Based on current budget and staff levels, police cost is $290 per person or $1,217 per household and represents 40.5% of General Fund expenditures. PUBLIC SAFETY EXPENSES 2% 0% 4% 6% 8% 10% FY 2014/15 FY 2018/19 FY 2022/23 FY 2015/16 FY 2019/20 FY 2023/24 FY 2020/21 FY 2021/22 FY 2024/25 FY 2016/17 FY 2017/18 AVERAGE ANNUAL INCREASE OF 5.17% Citizens’Guide | 14
CAPITAL IMPROVEMENT PROJECTS (CIP) Over $51.9 million of improvements FYs 2023/24 & 2024/25 Capital Budget Category Overview FY 2023/24 FY 2024/25 Category New Request New Request Total Streets and Highways $14,115,000 $12,185,000 $26,300,000 Bridges $1,053,958 $10,000 $1,063,958 Buildings $1,950,000 $4,850,000 $6,800,000 Drainage $280,000 $280,000 $560,000 Electric Utility $6,091,340 $4,680,000 $10,771,340 Landscaping $1,915,000 $1,035,000 $2,950,000 Parks $160,000 $158,500 $318,500 Traffic Signals $650,000 $500,000 $1,150,000 Other $2,000,000 $0 $2,000,000 Total $28,215,298 $23,698,500 $51,913,798 ADOPTED CAPITAL IMPROVEMENT PLAN 50.66% Streets & Highways 5.68% Landscaping 13.10% Buildings 20.75% Electric Utility 3.85% Other 2.22% Traffic Signals 2.05% Bridges 1.08% Drainage 0.61%Parks Capital Budget Category Overview - Expenses Streets Based on the City’s Pavement Management Plan, the annual maintenance costs to keep our streets in an acceptable pavement condition index is estimated at $10M per year. The current budget includes $21.2M allocated for annual street maintenance. Additional funding will be applied as available. INFRASTRUCTURE FYs 2023/24-24/25 Funding Sources Gas Tax $780,000 Senate Bill 1 $10,000,000 Measure A $1,370,000 Capital Project Reimbursements $12,800,000 Co-opt Agreements $100,000 DIF Arterial Streets $1,150,000 DIF Interchange Improvements $100,000 CDBG $1,286,000 Total $27,586,000 Citizens’Guide | 15
COMMUNITY HOW TO GET INFORMATION ENGAGEMENT AND GET INVOLVED In preparation for this budget cycle, the City has utilized prior feedback and again asked the community to provide input on service priorities. Additionally, the City has engaged thousands of Moreno Valley residents through electronic and mailed requests for feedback. Preparation of this Adopted Budget required careful planning to effectively balance community feedback with the City’s strategic priorities and commitments. Each City Department evaluated efficiencies and reviewed costs to ensure its budget aligns with City Council’s strategic priorities and goals. The result is an Adopted Budget that allocates existing resources and includes additional funding only where necessary to maintain service levels in a responsible manner. The City prides itself in being responsive, as well as responsible, stewards of the taxpayer dollar. In past years, the City conducted a series of community surveys which asked the public about a range of issues, including satisfaction with some of the services we provide and issues of concern. Many of the residents’ past responses were used to create the City’s strategic priorities and commitments. Some of the priorities identified by the community in those surveys included: • Addressing homelessness • Maintain 9-1-1 emergency response times • Maintain safe and clean parks and public areas • Maintain the number of fire engines in service and gang and youth violence prevention programs • Prevent robberies and burglaries • Repairing potholes and roads The budget has focused on many community issues. We are striving to identify new funding sources or means to continue to meet these growing community needs. JOIN THE CONVERSATION ONLINE BALANCING ACT FINANCE SUBCOMMITTEE MEETINGS PUBLIC HEARINGS TOWN HALL MEETINGS PUBLIC MEETINGS PRIVATE SURVEY STUDY SESSIONS TELEPHONE TOWN HALLS SOCIAL MEDIA Citizen Engagement Citizens’Guide | 16
Based on the City’s long-range projections, the City will have to overcome the following budget assumptions. • Expenditures continue to increase primarily due to Public Safety • Revenue growth from existing sources is flattening, while future recessions are projected • Economic Development key to balancing budget, but will not fund the priorities/needs identified by the community in the past surveys. Economic Development helps to grow revenues to maintain services. • New revenues are necessary to provide enhanced services The illustration below shows the budgetary gap in future years beyond this two-year budget cycle. Revenues and Expenses are forecasted to increase the same through 2029, but without economic development growth, the City services will be impacted. BUDGET ASSUMPTIONS/ ECONOMIC FUTUREConcerns New revenues are necessary to provide enhanced services The illustration below shows the budgetary gap in future years beyond this two-year budget cycle. Revenues and Expenses are forecasted to increase the same through 2029, but without economic development growth, the City services will be impacted. 50 0 100 150 200 MILLIONS FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 While focusing significant energy to attract and retain local businesses, the City will also contend with ongoing fiscal pressures: • Although Moreno Valley works hard to protect funding for local services, Sacramento continues to find new ways to take millions from cities like ours, while also imposing expensive new regulations without any funding to implement them. • Riverside County continues to increase costs for key public services, including contract law enforcement. • Fire protection costs are rising. • The City must continue to re-invest in upgrading the City’s aging infrastructure. • The City Council’s commitment to Pension reform continues to save millions of dollars every year. The City must also contend with factors beyond its control such as revisions to CalPERS rate methodology which had previously smoothed rate increases over longer periods. • The General Fund must guarantee debt service payments on the police facility and other obligations of the current Development Impact Fee accounts. The City’s ongoing success in meeting fiscal challenges demonstrates the City Council’s commitment to resources prudently and for maximum public benefit. The Council’s resolve, combined with highly engaged managers at all levels and a collaborative relationship with our employees, will continue to serve us well over the next two fiscal years and beyond. Revenues Expenses *Revenues do not assume projected recession. Citizens’Guide | 17
With the new Hire MoVal – Hire a Grad program, Moreno Valley businesses are eligible to receive incentives for hiring Moreno Valley residents who have recently graduated, earned a certifi cate, completed a training program or course of study from an accredited educational institution. Local businesses may be awarded a $1,000 stipend for each recent Moreno Valley graduate up to a maximum of fi ve new hires once retained for a minimum of 480 hours, which is an average of 20 hours a week for a minimum employment time period of six months. Have a current business license Hire a Moreno Valley resident who has received a degree, certifi cate, completed a training program, or course of study from an accredited educational institution within the past 2 years (24 months) beyond a secondary (K-12) education. Employed a minimum of 480 hours, which is an average of 20 hours a week for a minimum employment time period of six months. The Hire A MoVal Grad is part of the award winning Hire MoVal program that provides incentives to businesses in exchange for hiring Moreno Valley residents. For more information, please email [email protected] or call 951.413.3021 for program guidelines. GET REWARDED UP TO $5,000 FOR HIRING LOCAL GRADUATES! IN ORDER TO BE ELIGIBLE, MORENO VALLEY BUSINESSES MUST: ✔ ✔ Hire a Grad CALIFORNIA www.morenovalleybusiness.com Hire MoVal ATTENTION MORENO VALLEY BUSINESS: Looking to hire local talent? The Moreno Valley Business & Employment Resource Center can help! At the BERC, we offer free hiring assistance services such as: ON-SITE JOB POSTINGS WORKSHOPS JOB RECRUITMENTS HIRE MOVAL HOT JOBS E-BLASTS ✔ Accele rating Oppo rtunities | 951.413.3460 | [email protected] rg Citizens’Guide | 18
With the new Hire MoVal – Hire a MoVal Veteran program, Moreno Valley businesses are eligible to receive incentives for hiring Moreno Valley Veterans who are residents and have served in active military service in the United States. Local businesses may be awarded a $1,500 stipend ($1,000 to the business and $500 to the veteran) for each recent Moreno Valley Veteran up to a maximum of 10 new hires once employed a minimum of 480 hours, which is an average of 20 hours a week for a minimum employment time period of six months. Have a current business license Hire a Moreno Valley Veteran resident who has received an Honorable Discharge, released from active duty under honorable conditions and served a minimum of 90 consecutive days or was released from active duty under honorable conditions. Copies of Employee’s discharge papers (including form DD-214) must be available upon request. Employed a minimum of 480 hours, which is an average of 20 hours a week for a minimum employment time period of six months. The Hire A MoVal Veteran program is part of the award-winning Hire MoVal program that provides incentives to businesses in exchange for hiring Moreno Valley residents. For more information, please email [email protected] or call 951.413.3021 for program guidelines. GET REWARDED UP TO $15,000 FOR HIRING LOCAL VETERANS! IN ORDER TO BE ELIGIBLE, MORENO VALLEY BUSINESSES MUST: ✔ ✔ ✔ Accele rating Oppo rtunities | 951.413.3460 | [email protected] rg Hire a Veteran CALIFORNIA www.morenovalleybusiness.com Hire MoVal ATTENTION MORENO VALLEY BUSINESS: Looking to hire local talent? The Moreno Valley Business & Employment Resource Center can help! At the BERC, we offer free hiring assistance services such as: ON-SITE JOB POSTINGS WORKSHOPS JOB RECRUITMENTS HIRE MOVAL HOT JOBS E-BLASTS ✔ Citizens’Guide | 19
MORENO VALLEY CITY HALL Financial & Management Services 14177 Frederick Street Moreno Valley, CA 92552-0805 951.413.3021 | MoVal.org