CITY MANAGER'S MESSAGE

Dear Honorable Mayor, City Council and Citizens of Menifee:

I am pleased to present the Proposed Fiscal Year 2022/2023 Operating and Capital Improvement Budget(s) for the City of Menifee. The City’s 14th budget proposal reflects the City’s continued commitment to our residents with a focus on building a Safe, Thriving & Premier place to live while maintaining fiscal sustainability and accountability.

The focus remains on quality of life and an investment in public safety and infrastructure, necessary to promote a safe, attractive, interconnected, and economically prosperous community.

The Proposed Fiscal Year 2022/2023 Operating and Capital Improvement Budget(s) for the City of Menifee continues to address the City Council’s Strategic Plan 2018-2023 that includes objectives and tasks necessary to improve: 1) Public Safety; 2) Land Use; 3) City Hall; 4) Infrastructure; 5) Community Outreach, and 6) Workforce & Facility Management.

The effects of COVID-19 on our local economy did not impact the City as severely as anticipated. This was largely due to the City’s quick response to implement mitigating strategies to minimize the negative impacts of the state-imposed limitations. City staff quickly introduced innovative & forward-thinking technology solutions and implemented award winning full virtual services with the City’s zero-stop-shop, to continue providing uninterrupted services to our residents as well as the development community during the pandemic.

Public Safety continues to be a high priority for the City, as illustrated in our Strategic Plan, as the total Public Safety costs comprise 55.41%, or $47,237,176, of the combined General Fund and Quality of Life Fund budgets.

Measure DD, approved by the voters in 2016, has enabled the City to fulfill its public safety and service commitments to the residents of Menifee. In this Proposed Fiscal Year 2022/2023 Budget, staff has included enhanced Fire Services with a new medic squad, three new Firefighters, three new Paramedics, a Fire Specialist, and an EMS Specialist. These new staff additions to our Fire Department will help to decrease response times citywide.

The Menifee Police Department has also benefitted from the passage of the Quality of Life (Measure DD). Through the increase of the Quality of Life revenues, the plan to increase police officers over the next five years was accelerated to year five at the mid-year Fiscal Year 2021/2022 budget. This increase in Police personnel will enable the Menifee Police Department to continue to improve response times and implement additional programs to benefit the community.

The proposed Citywide FY 2022/2023 budget, a financial plan of expenditures, totals $129,328,947 for all funds, and supports 315.40 (289 full-time and 26.4 part-time) positions. The City’s General Fund operating budget, inclusive of Quality of Life Measure, totals projected revenues of $86,059,273 and total projected expenditures of $86,059,273, resulting in a balanced budget.

The General Fund Revenue Budget for Fiscal Year 2022/2023 (exclusive of Quality of Life Measure) totals $67,939,273 which includes $64,919,063 in reoccurring revenues along with onetime Transfers in of $3,020,210. These transfers in include $2,010,210 from the American Rescue Plan revenues, $750,000 from the General Plan Reserve, $152,000 from the SLESF Fund for frontline police services, $58,000 from the American Medical Rescue reserves, and $50,000 from the Bonded CFDs for staff administration expenses. The Quality of Life Measure proposed Revenue Budget for Fiscal Year 2022/2023 is $18,126,000.

The General Fund Operating Expenditure Budget for Fiscal Year 2022/2023 (exclusive of Quality of Life Measure) is proposed at $65,115,063 with an additional $2,818,210 in capita projects/capital outlays for total expenditures of $67,933,273. The Quality of Life Measure Operating Expenditure Budget for Fiscal Year 2022/2023 is proposed at $18,126,000. The total general fund expenditures, inclusive of Quality of Life Measure, of $86,059,273 represents an increase of 14.9% from the adopted FY 2021/2022 budget.

As of January 2022, the City of Menifee’s population had increased 6.96% to 106,627. Since 2019, the City of Menifee has been ranked the fastest growing city in Southwestern Riverside County. Since 2020, the City of Menifee has been ranked the 3rd fastest growing city in all of Riverside County and in January 2022 according to the California Department of Finance estimates, the City of Menifee is the 5th fastest growing city in the entire state of cities with populations over 30,000. The total City-wide Operating and Capital Improvement Budget for FY 2022/2023 is $129,328,947, an increase of $6,651,628 or 5.4% from the FY 2021/2022 adopted budget.

To respond to and balance the consequences of growth as outlined above, continued investment in the city’s infrastructure is essential. New capital projects slated for funding in the FY 2022/2023 budget include:

• $10.6 million in transportation projects;

• $304,000 in traffic signal projects;

• $4.28 million in Pavement Management Projects;

• $500,000 in road improvement projects;

• $100,000 in streetlight projects;

• $550,000 in City Park improvements.

Other significant operating expenditures include $1.7 million for debt service payments, and $7.55 million for maintenance, operating, and capital costs associated with special districts.

The City of Menifee continues to be one of the fastest growing communities in all of California. Its’ small town feel blended with the convenience of close recreational amenities, an excellent school system, safety, and quality housing, continues to draw new residents year after year. This in turn increases the demand for public safety and municipal services.

In September 2021, the City Council adopted an updated reserve fund balance policy to set aside funds for future emergencies. This policy establishes a minimum 12.5% fund balance reserve for natural disasters and catastrophic events; a 12.5% reserve for economic slowdown due to the onset of a recession or other economic crisis; and a 10% reserve to offset the timing of grant reimbursements and the collections of property taxes. The proposed FY 2022/2023 budget maintains adequate funding levels to be consistent with the 2021 reserve fund balance policy With the Quality of Life Measure revenue, the FY 2022/2023 Operating and Capital Improvement Budget(s) represents a balanced and fiscally prudent spending plan that strives to meet the needs of our community in the present and in the future. As costs continue to increase each year, and so too the demand for city services, the City is proud of its efforts and its City staff in consistently delivering high quality public service, combined with a focus on efficiency, fiscal responsibility and innovation.

I would like to thank the City Council for their continued support in the development of the 2022/2023 budget and for providing a long-term vision with the City’s Strategic Plan 2018-2023. Also, for making the City of Menifee a community recognized as safe, clean, vibrant, innovative, and responsive to the diverse needs of residents, businesses, and visitors.

Lastly, assembling and designing the budget each year, the financial strategic plan of the city, is a daunting task that requires a tremendous amount of strategic thinking, analysis and expertise, coupled with dedication, effort, and energy from our proficient staff. I would also like to thank the City staff for their hard work, dedication, and commitment to serving the Menifee community in this effort and on a daily basis to make Menifee a “Safe, Thriving and Premier Place to be”.

Respectfully Submitted,