CITY OF ARCATA
SPECIAL CITY COUNCIL MEETING
STUDY SESSION
AGENDA
Thursday, May 8, 2025, 3:30 p.m.
Council Chamber
736 F Street, Arcata
Fiscal Year 2025/2026 Budget Study Session
________________________________________________________________________________________ Special accommodations for the disabled who attend City meetings can be made in advance by contacting the City Clerk at 822-5953. Assistive listening devices are available. ________________________________________________________________________________________ Pursuant to Government Code section 54957.5, all writings or documents relating to any item on this agenda which have been provided to a majority of the City Council, including those received less than 72 hours prior to the City Council meeting, will be made available for public inspection in the agenda binder located on the counter in the lobby at Arcata City Hall, 736 F Street, during normal business hours, and on the City's website at www.cityofarcata.org.
PLEASE NOTE: Speakers wishing to distribute materials to the City Council at the meeting are requested to provide 10 copies to the City Clerk.
________________________________________________________________________________________ How to Observe and Participate in the Meeting:
Members of the public may attend the meeting in person and give public comment.
1. CALL TO ORDER
2. PUBLIC COMMENT
3. DISCUSSION
a. Review Proposed Fiscal Year 2025/2026 General Fund Budget, Fiscal Year 2025/2026 Measure H Requested Appropriations; and Preview Other City Funds. b. Review Updated City Council Goals and Priority Projects for Fiscal Year 2025/2026.
4. ADJOURNMENT
STAFF REPORT – CITY COUNCIL MEETING
TO: Honorable Mayor and City Council Members
FROM: Tabatha Miller, Finance Director
PREPARER: Tabatha Miller, Finance Director
DATE: May 8, 2025
TITLE: Review Proposed Fiscal Year 2025/2026 General Fund Budget, Fiscal Year 2025/2026 Measure H Requested Appropriations; and Preview Other City Funds.
RECOMMENDATION:
It is recommended that the Council receive the staff report, review the Proposed Fiscal Year (FY) 2025-26 General Fund Budget, review the FY 2025-26 Measure H Requested Appropriations, preview other City Funds and provide staff direction, as appropriate.
INTRODUCTION:
The General Fund is used to account for the general operations of the City such as Police, City Administration, and more. It is used to account for all financial resources, including property tax, sales tax, business license tax, transient occupancy tax, license and permits, fines and forfeits, except those required to be accounted for in another fund.
BACKGROUND:
Because the General Fund accounts for all resources and expenditures not required to be segregated, it has the most flexibility in how it is expended. However, it can also be the most competitive funding source because of its flexibility and the number of City programs and services dependent on it for funding.
Measure H, the three-quarter (3/4) cent tax to support community-identified priorities, received 65% voter support in the November 5, 2024, election. The estimated $2.6 million in additional revenue each year will fund emergency and climate change response, services to address homelessness and its impacts, mental health response to crisis, essential city services and maintenance and expansion of sidewalks, bike lanes, transit, roads, parks and trails.
Although Measure H is a general tax, staff is committed to ensuring transparency and accountability for the use of those funds.
BUDGET/FISCAL IMPACT:
The budget development process, including the direction provided by the City Council during the Budget Work Sessions, will frame the final budget/fiscal impact that is presented to City Council for possible adoption on June 18, 2025.
RECOMMENDED COUNCIL ACTION:
1. Receive a staff report.
2. Review the proposed FY 2025-26 General Fund Budget.
3. Review the FY 2025-26 Measure H Requested Appropriations.
4. Preview other City Funds; and
5. Provide staff direction, as appropriate.
ATTACHMENTS:
A. Preliminary FY 2025-26 General Fund and Other Selected Funds Budget Summaries B. Preliminary FY 2025-26 Measure H Requests
C. Preliminary Recommended FY 2025-26 Measure H Summary
$515,800 $534,730 $462,982 $640,600 $551,777
$160,000 $160,000 $140,449 $210,000 $179,739
$2,195,750 $2,127,340 $1,594,732 $2,066,370 $2,010,660
$2,588,000 $4,510,897 $2,617,836 $5,075,893 $4,381,357
$790,000 $840,500 $552,188 $817,000 $848,853
$3,433,856 $1,380,116 $581,487 $2,041,119 $2,008,969
$13,964,000 $12,112,550 $7,841,898 $11,044,000 $11,338,883 $649,000 $512,300 $625,294 $456,200 $1,016,725
$24,296,406 $22,178,433 $14,416,864 $22,351,182 $22,336,963 $5,691,525 $7,126,269 $3,074,369 $6,602,069 $4,439,188
$76,962 $74,536 $60,821 $2,574,395 $2,618,383
$1,121,412 $651,364 $494,719 $710,016 $709,736
$4,165,812 $4,142,886 $2,493,005 $3,954,759 $3,392,448
– $0 – $0 $22,506
$13,450,291 $12,980,856 $10,410,778 $12,042,897 $11,584,645 $24,506,002 $24,975,911 $16,533,692 $25,884,136 $22,766,906 -$209,596 -$2,797,477 -$2,116,828 -$3,532,954 -$429,943 Revenues
Charges for Services
Fines & Forfeitures
Interfund Charges
Intergovernmental Revenue
Licenses & Permits
Other Revenue
Taxes
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Debt Service
Interfund/Intergovt
payments
Materials & Services
Other Expenditures
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:20 PM Page 1 of 1
City of Arcata
101 - General Fund
$0 $0 – $47,500 $47,500
$168,000 $168,000 $101,801 $168,000 $168,917
$8,000 $5,550 $8,384 $0 $11,112
$176,000 $173,550 $110,185 $215,500 $227,528
$66,000 $245,000 $37,608 $187,962 $106,594
$81,000 $151,949 $91,046 $89,400 $21,051
$0 $20,000 – $0 –
$147,000 $416,949 $128,653 $277,362 $127,644
$29,000 -$243,399 -$18,468 -$61,862 $99,884
Revenues
Other Revenue
Taxes
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Materials & Services
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:23 PM Page 1 of 1
City of Arcata
202 - Open Space, Parks, Trails
$0 $0 – $500 –
$500 $7,700 $6,192 $0 $26
$391,825 $608,779 $602,223 $473,000 $36,928
$392,325 $616,479 $608,414 $473,500 $36,954
$750 $750 – $200 –
$74,153 $68,315 $55,890 $61,447 $56,298
$186,538 $876,903 $492,289 $592,780 $99,933
$115,095 $121,686 $98,131 $113,575 $91,298
$376,536 $1,067,654 $646,310 $768,002 $247,529
$15,789 -$451,174 -$37,895 -$294,502 -$210,575
Revenues
Intergovernmental Revenue
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Interfund/Intergovt
payments
Materials & Services
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:24 PM Page 1 of 1
City of Arcata
205 - Forest Management
$15,000 $15,000 $12,874 $15,000 $19,668
$0 -$14,000 -$10,500 $175,000 $175,000
$0 $0 – $0 –
$15,000 $1,000 $2,374 $190,000 $194,668
$30,000 $0 – $0 –
$24,520 $19,744 $14,808 $11,436 $11,436
$58,376 $67,288 $29,048 $70,189 $63,399
$209,419 $202,265 $172,753 $199,213 $185,022
$322,315 $289,297 $216,608 $280,838 $259,857
-$307,315 -$288,297 -$214,234 -$90,838 -$65,189
Revenues
Fines & Forfeitures
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Interfund/Intergovt
payments
Materials & Services
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:29 PM Page 1 of 1
City of Arcata
209 - Traffic Safety
$531,492 $527,009 $411,302 $539,700 $521,437
$840,000 $1,012,000 $705,000 $540,000 $540,000
$4,500 $7,163 – $0 $3,202
$1,375,992 $1,546,172 $1,116,302 $1,079,700 $1,064,639
$86,200 $29,200 $17,303 $379,137 $309,019
$308,914 $604,155 $453,168 $211,108 $211,108
$394,391 $380,231 $195,122 $233,050 $212,635
$558,725 $722,778 $522,274 $715,990 $630,555
$1,348,230 $1,736,364 $1,187,866 $1,539,286 $1,363,317
$27,762 -$190,192 -$71,564 -$459,586 -$298,677
Revenues
Intergovernmental Revenue
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Interfund/Intergovt
payments
Materials & Services
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:26 PM Page 1 of 1
City of Arcata
207 - Gas Tax
$0 $0 – $0 –
$190,000 $160,000 $185,506 $188,500 $170,690
$190,000 $160,000 $185,506 $188,500 $170,690
$500 $251,960 $251,720 $500 $260
$50,000 $296,057 $26,485 $160,000 $50,712
$770,000 $30,087 $4,287 $520,000 $9,913
$55,445 $47,786 $16,389 $17,658 $16,898
$875,945 $625,890 $298,880 $698,158 $77,782
-$685,945 -$465,890 -$113,374 -$509,658 $92,907
Revenues
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Interfund/Intergovt
payments
Materials & Services
Other Expenditures
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:31 PM Page 1 of 1
City of Arcata
245 - Public Improvement Projects Fund
$750,000 $150,000 -$108,814 $70,000 $65,904
$0 $0 $13,259 $6,000 $17,210
$750,000 $150,000 -$95,556 $76,000 $83,113
$476,362 $297,365 $200,260 $94,829 $48,798
$476,362 $297,365 $200,260 $94,829 $48,798
$273,638 -$147,365 -$295,816 -$18,829 $34,315
Revenues
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:32 PM Page 1 of 1
City of Arcata
350 Capital Improvement Fund
$9,345,200 $8,805,200 $7,606,650 $8,160,000 $8,503,918
$11,500,000 $22,100,000 $5,441,156 $18,012,661 $26,681,904 -$3,559,000 -$62,000 -$50,028 -$70,500 $230
$325,000 $203,800 $326,823 $200,000 $328,685
$17,611,200 $31,047,000 $13,324,601 $26,302,161 $35,514,737 $17,855,500 $22,027,354 $14,709,654 $24,967,723 $74,789 $0 $0 – $1,500,000 $1,500,668
$0 $0 – $0 $671,848
$1,033,253 $896,712 $793,899 $752,575 $748,543
$3,599,432 $2,986,353 $1,870,979 $2,667,572 $2,301,812
– – – $0 –
$2,414,858 $2,126,357 $1,767,612 $2,064,428 $2,136,526
$24,903,043 $28,036,776 $19,142,143 $31,952,297 $7,434,186 -$7,291,843 $3,010,224 -$5,817,542 -$5,650,136 $28,080,551 Revenues
Charges for Services
Intergovernmental Revenue
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Debt Service
Depreciation
Interfund/Intergovt
payments
Materials & Services
Other Expenditures
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:36 PM Page 1 of 1
City of Arcata
662 - Wastewater Fund
$6,233,800 $5,712,200 $4,843,086 $6,128,000 $5,820,182
$1,300,000 $0 – $3,000,000 –
$3,395,000 -$105,000 $969,750 -$100,000 -$99,281
$325,000 $303,000 $339,035 $300,000 $474,906
$11,253,800 $5,910,200 $6,151,871 $9,328,000 $6,195,807 $11,475,126 $3,885,937 $1,068,062 $5,914,583 $43,565
$136,195 $136,195 $111,647 $1,135,748 $1,053,699
$0 $0 – $0 $182,774
$826,909 $677,375 $633,629 $541,842 $565,200
$3,759,849 $3,594,652 $2,341,433 $3,226,740 $3,177,452
$2,013,191 $1,770,557 $1,473,294 $1,646,812 $1,769,358
$18,211,270 $10,064,716 $5,628,065 $12,465,725 $6,792,048 -$6,957,470 -$4,154,516 $523,806 -$3,137,725 -$596,240
Revenues
Charges for Services
Intergovernmental Revenue
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Debt Service
Depreciation
Interfund/Intergovt
payments
Materials & Services
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:34 PM Page 1 of 1
City of Arcata
661 - Water Fund
$38,000 $28,000 $21,928 $29,500 $38,314
$64,492 $102,000 $23,245 $22,000 $28,935
-$100,000 $0 – $0 –
$615,000 $550,000 $477,863 $492,000 $492,071
$22,000 $18,600 $34,164 $0 $35,752
$639,492 $698,600 $557,200 $543,500 $595,071
$20,000 $21,807 $428 $2,101 $294
$0 $0 – $0 $219
$15,168 $30,711 $28,947 $26,846 $26,637
$176,985 $243,524 $131,467 $295,217 $280,947
$34,533 $77,500 $26,353 $6,395 $4,737
$530,111 $317,072 $239,828 $237,103 $262,285
$776,797 $690,614 $427,025 $567,662 $575,119
-$137,305 $7,986 $130,176 -$24,162 $19,953
Revenues
Charges for Services
Intergovernmental Revenue
Other Revenue
Taxes
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Depreciation
Interfund/Intergovt
payments
Materials & Services
Other Expenditures
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:37 PM Page 1 of 1
City of Arcata
664 - Solid Waste Fund
$253,800 $253,800 $180,034 $253,800 $270,341
$18,413 $130,603 $69,569 $223,514 $113,355
$8,000 $10,000 $5,814 $12,000 $9,480
$41,000 $41,500 $30,228 $31,800 $31,239
$102,295 $99,767 $53,664 $78,509 $119,567
$423,508 $535,670 $339,309 $599,623 $543,982
$387,868 $101,103 $82,092 $60,187 $42,832
$0 $0 – $0 –
$0 $0 – $0 $68,568
$188,234 $267,682 $210,424 $203,861 $197,973
$124,446 $239,854 $120,307 $293,638 $179,940
$399,317 $392,121 $322,493 $379,716 $388,321
$1,099,865 $1,000,760 $735,315 $937,402 $877,634
-$676,357 -$465,090 -$396,006 -$337,779 -$333,652
Revenues
Charges for Services
Intergovernmental Revenue
Licenses & Permits
Other Revenue
Use of Money & Property
REVENUES TOTAL
Expenses
Capital Outlay
Debt Service
Depreciation
Interfund/Intergovt
payments
Materials & Services
Personnel Services
EXPENSES TOTAL
Revenues VS. Expenses
FY 2026 REQUESTED FY 2025 BUDGET FY 2025 ACTUALS FY 2024 BUDGET FY 2024 ACTUALS FY2026 FY2025 FY2025 FY2024 FY2024
May 6, 2025 1:39 PM Page 1 of 1
City of Arcata
666 - Stormwater Fund
Description Department Requesting
1X or
Ongoing $ Amount Recommended Funds Description
M-H
Priorities CC Goals
1 Encampment Clean-ups City Manager Ongoing 50,000 50,000 General Fund 101 Continue encampment clean-up services through The People of New Directions 5 4
2 Flash Vote City Manager 1X 14,000 14,000 General Fund 101 Measure H - Polling System 1 2 3 Personnel Regulations Review City Manager/HR 1X 10,000 10,000 General Fund 101 Personnel Rules and Regulations Update Legal Review 1 1 4 Storage room conversion to bathroom Engineering/Building 1X 55,000 - General Fund 101 Complete City Hall remodel by adding accessible single-stall restroom 1 1
5 Nuisance Abatement Engineering/Building Ongoing 100,000 50,000 General Fund 101 Ongoing Program for Nuisance Abatement 3 1 6 Bicycle and Pedestrian Improvement Project (HSIP) Engineering/Building 1X 77,840 77,840 General Fund 101 Bicycle and Pedestrian Improvement Project (HSIP) 4 4 7 Match funds for South Arcata Multimodal Safety
Improvements Match Engineering/Building 1X 75,000 75,000 General Fund 101 Match funds for South Arcata Multimodal Safety Improvements Match 4 5
8 Annual Paving and Sidewalk Complete Streets Improvement Program Engineering/Building Ongoing 250,000 250,000 General Fund 101 Annual Paving and Sidewalk Complete Streets Improvement Program 4 5
9 Speed Hump/Traffic Calming K Street Engineering/Building 1X 30,000 30,000 Traffic Safety 209 Speed bump with cut outs to accommodate Emergency Response Vehicles 3 2
10 Unfunded Climate Change Adaptation and Energy Projects Env. Services/Energy Ongoing 66,400 66,400 General Fund 101 Continue to fund Energy conservation and climate adaptation not funded by Excess Electric user tax 3 1
11 Repaint Arcata Community Center Env. Services/Facilities 1X 50,000 - General Fund 101 Repaint exterior of Arcata Community Center 1 1 12 Sports Complex Irrigation Replacement Env. Services/Facilities 1X 60,000 - General Fund 101 Replace irrigation vault and valves at Arcata Sports Complex 3 3 13 Facilities Window Shades Replacement Env. Services/Facilities 1X 20,000 20,000 General Fund 101 Replace window shades at Redwood Lodge, Redwood Lounge, and D St. Community Center 1 1
14 Cahill Park Playground Equipment Replacement Env. Services/Facilities 1X 15,000 - General Fund 101 Replace aging playground equipment at Cahill Park 3 2 15 Electric heat pumps for Redwood Lounge and Recreation Env. Services/Facilities 1X 30,000 30,000 General Fund 101 Replace gas-powered HVAC systems with efficient electric alternatives 2 2
16 Open Space roof replacement and bathroom remodel Env. Services/Facilities 1X 145,000 125,000 Stormwater 666 Replace barn and rental house roofs and remodel bathroom at Open Space properties 1 2
17 Redwood Park Improvement Project Phase II Env. Services/Facilities 1X 175,000 175,000 General Fund 101 Fund Phase II improvements for Redwood Park- rehab basketball court 3 2
18 Westwood culvert replacement Env. Services/Facilities 1X 30,000 30,000 Stormwater 666 Replace failed culvert in Westwood neighborhood 4 2 19 Conservation/management of open space lands Env. Services/Parks Ongoing 51,800 51,800 General Fund 101 Continue to manage open space lands 3 3 20 Special Event permit processing Env. Services/Recreation 1X 5,000 5,000 General Fund 101 Software support for Special Event permit processing via OpenGov 1 2
21 Recreation PT staffing increase Env. Services/Recreation Ongoing 41,500 25,000 General Fund 101 Increase part-time Recreation staffing budget to cover increased programming and facility demands 2 3
22 Perimeter Fence at 4700 West End Env. Services/Streets 1X 80,000 - General Fund 101 Install perimeter fence to provide secure storage area at 4700 West End Rd. 3 2
23 Tree removal and maintenance Env. Services/Streets 1X 50,000 30,000 Gas Tax 207 Address City right-of-way tree maintenance 2 2 24 Emergency response to Winter Storms Env. Services/Streets Ongoing 35,900 35,900 Gas Tax 207 Continue to fund emergency storm response 3 2 25 Juvenile Diversion Counselor Public Safety Ongoing 181,015 181,015 General Fund 101 Continue to staff one Juvenile Diversion Officer, pay and benefits 1 1
26 Community Ambassador Program Public Safety Ongoing 151,225 151,225 General Fund 101 Continue to staff the Community Ambassador program 1 1 27 Arcata Community Outreach Police Sergeant Public Safety Ongoing 210,000 210,000 General Fund 101 Continue to staff Outreach Sergeant 1 1 28 Arcata Community Outreach Police Officer 50% Public Safety Ongoing 96,000 96,000 General Fund 101 Continue to staff Outreach Officer 1 1 Total $ 2,155,680 $ 1,789,180
M-H Total M-H 1X M-H Ongoing
$ 2,155,680 $ 921,840 $ 1,233,840
City of Arcata
Fiscal Year 2025-26
Supplemental Measure H Budget Requests
Requested Totals
Proposed
FY 2025-26
Revenues
Measure H $ 2,600,000
Estimated Carryforward from FY 2025 322,500
Total Available Revenue $ 2,922,500
Expenditures
1-X Redwood Park Improvement Project Phase II 175,000
Westwood culvert replacement 30,000
Flash Vote 14,000
Facilities Window Shades Replacement 20,000
Open Space roof replacement and bathroom remodel 125,000 Right-of-Way Tree removal and maintenance 30,000
Electric heat pumps for Redwood Lounge and Recreation Facilities 30,000 Personnel Regulations Review 10,000
Special Event permit processing 5,000
Bicycle and Pedestrian Improvement Project (HSIP) 77,840 Match funds for South Arcata Multimodal Safety Improvements Match 75,000 Speed Hump/Traffic Calming K Street 30,000
1-X Subtotal $ 621,840
Ongoing
Encampment Clean-ups 50,000
Nuisance Abatement 50,000
Juvenile Diversion Counselor (Prior County Measure Z Funded) 181,015 Community Ambassador Program (Prior ARPA Funded) 151,225 Recreation PT staffing increase 25,000
Full-time E.S. Facility Crew Leader Position 113,300
Arcata Community Outreach Police Sergeant (Prior ARPA Funded) 210,000 Arcata Community Outreach Police Sergeant (Prior 50% ARPA Funded) 96,000 Conservation/management of open space lands 51,800
Emergency response to Winter Storms 35,900
Unfunded Climate Change Adaptation and Energy Projects 66,400 Annual Paving and Sidewalk Complete Streets Improvement Program 250,000 Set Aside for Existing Programs Essential Services 1,000,000 Ongoing Subtotal $ 2,280,640
Total Expenditures $ 2,902,480
Increase/(Decrease) in Net Operating Income $ 20,020
City of Arcata
FY 2025-26 Preliminary Budget Measure H Summary
STAFF REPORT – CITY COUNCIL MEETING
TO: Honorable Mayor and City Council Members
FROM: Tabatha Miller, Finance Director
PREPARER: Tabatha Miller, Finance Director
DATE: May 8, 2025
TITLE: Review Updated City Council Goals and Priority Projects for Fiscal Year 2025/2026.
RECOMMENDATION:
It is recommended that the Council review and, if appropriate, make final revisions to the City Council Goals and Priority Projects for the Fiscal Year (FY) 2025-26 Budget.
INTRODUCTION:
The City Council reviewed and made recommended revisions and additions to the City Council Goals and Priority Projects at the April 8, 2025, Budget Study Work Session to reflect the current direction of the City Council. Those recommended revisions are incorporated into the attached clean draft documents for City Council review.
BACKGROUND:
The City’s annual budget is not only a financial plan for the City but also represents the City’s workplan for the year. The budget provides the resources for staff to meet the City Council’s goals and to complete the projects and programs that City Council sets as the priority. It is through the budget that things get done in a City. It is recommended that the Council review and, if appropriate, make final revisions to the City Council Goals and Priority Projects which will be adopted as part of the FY 2025-26 Budget.
POLICY IMPLICATIONS:
The budget is developed consistent with policies that govern the stewardship of public funds and reflect the City’s commitment to balanced financial planning. These include the following:
The budget will balance ongoing expenditures with ongoing revenues. The employees have inherent value in their knowledge, experience, and dedication that far exceeds their monetary cost.
The budget will ensure reserve balances are maintained as set by the City Council to respond to unexpected issues and emergencies.
Revenues will be estimated at probable levels using the most current data.
The City continues to work to reduce the Pension Unfunded Accrued Liability (UAL) in order to realize cost savings for future years and stabilize the funding status of the City’s CalPERS pension program.
City program and service review considers the following factors:
A. Mandated to provide the program: The City is required to provide this program under a. federal, state, county law; or
b. contractual obligation without the ability to terminate.
B. Community reliance on the City to provide the program: Programs for which residents, businesses and visitors can look only to the City to obtain the service vs. programs that may be similarly obtained from another intergovernmental agency or a private business.
C. Cost recovery of the program: Programs that demonstrate the ability to “pay for themselves” through user fees, intergovernmental grants or other specifically dedicated revenues vs. programs that generate limited or no funding to cover their cost.
D. Demand for the program: Programs demonstrating high levels of current or anticipated demand or usage vs. programs that show little demand or usage.
E. Portion of the community served: Programs that benefit or serve a larger segment of the City’s residents, businesses and/or visitors vs. programs that benefit or serve only a small segment of these populations while being mindful of vulnerable and underserved communities in our City.
BUDGET/FISCAL IMPACT:
While the final adopted budget has direct budget and fiscal impact, reviewing and revising goals, priority projects and objectives has indirect impact in that it provides budget planning documents for staff and budget policy documents for the City Council. The budget and fiscal impacts will be developed as part of the Proposed Budget for FY 2025-26.
RECOMMENDED COUNCIL ACTION:
Provide feedback and direction to staff on the Revised City Council Goals and Priority Projects to guide development of the City of Arcata’s FY 2025-26 Annual Budget.
ATTACHMENTS:
A. Clean version of Revised City Council Goals
B. Clean version of Updated City Council FY 2025-26 Priority Projects
City of Arcata
City Council Goals
Facilities and Infrastructure
Enhance Appearance, Public Safety and Livability of the City Maintain and Improve infrastructure and facilities.
Improve transportation and circulation systems.
Improve residents' safety and comfort.
Encourage community beautification and public art.
Environmental Leadership
Provide Leadership in Environmental Stewardship and Climate Change Preparedness
Increase local energy independence.
Strive to achieve zero waste.
Develop non-motorized transportation routes.
Support open space and ecosystem functions.
Improve water resource management.
Economic Development
Improve Local Economy and Quality of Life for Residents Provide additional support for existing and new businesses to grow and expand. Improve community services for business development.
Improve linkage between energy needs and resources.
Support a living wage and encourage investment in workforce satisfaction. Present a welcoming and inviting Community.
Public Service
Improve the Quality of Service to the Public
Respond to the needs of our residents.
Increase opportunities for community engagement.
Improve technological capabilities of the City.
Resident and Community Health
Support Community Creative and Cultural Life
Support healthy eating and active living programs.
Provide recreation opportunities for all residents.
Support housing opportunities.
Clean up environmental hazards and encourage City Code compliance. Support essential human services,
Prepare for Future Needs
Provide Opportunities for Residents and Staff
Provide leadership developing strategies for climate change. Use the best available science for future planning.
Develop long-term plans for sustainability.
City of Arcata: FY 2025-26
Draft Arcata City Council Priority Projects for 2025-26 Fiscal Year
1. Coordinate a regional Homelessness Reduction Strategy framework identifying initial priority benchmarks to provide or continue to shelter those who are or may become homeless.
a. Continue to support the regional efforts to provide solutions to homelessness including supporting cold weather shelter services and collaborate with local service providers and neighboring agencies to leverage resources and reduce duplicate services. b. Seek additional support for the Tenant Based Rental Assistance Program. c. Continue to seek funding for housing rehabilitation and remodeling programs to assist residents in staying in their homes and preventing them from becoming homeless.
d. Consider tenant and eviction protection policies and regulations, working with Legal Services and other resources. Collaborate with equity arcata and Cal Poly Humboldt housing and student groups to inform students about housing resources and rights.
2. Valley West Improvements
a. Work with the community to build programming for the Valley West community center and complete the long-term operational planning considering this and other sites.
b. Focus public safety on the neighborhood meeting priorities of trespassing/loitering, narcotic activity, vacant properties and encampments and coordinate enforcement of nuisance properties. Consider flashing crosswalk(s). c. Working with the Valley West Business Community, consider the establishment of a Valley West Business District and participate in quarterly meetings with City Staff and interested businesses.
3. Look for opportunities to collaborate with Humboldt County and local jurisdictions/non-profits to increase mental health and social services.
4. Public Safety
a. Continue to support and expand programs that provide an alternative response to crises other than policing. Seek long-term funding strategies and 24-hour emergency crisis response for adults and youth. b. Re-establish the Public Safety Committee and provide additional oversight duties. c. Initiate and implement Opioid prevention programs, including education programs. d. Implement ordinance banning the sale of nitrous oxide. e. Continue to clean up public spaces, remove camps and debris, and actively discourage camping in City parks and green spaces. f. Consider coordinating with other jurisdictions to implement a ban on disposable vaporizers. g. Evaluate the role and reporting structure for Community Ambassadors. Consider transitioning the program to more emphasis on citywide trash and debris cleanup.
City of Arcata: FY 2025-26
5. Continue Government Relationship growth with local Tribal Governments by seeking to strengthen relationships with tribal governments and identify ways to honor and build awareness of Wiyot history and language.
6. Economic Development Strategies
a. Complete an Economic Development Strategic Plan.
b. Promote business and tourism: Identify funding source(s) to advertise Arcata as a great place to shop; support visitarcata.com and regional marketing around student alumni successes locally. Collaborate with the Chamber, Humboldt Made, Cal Poly Humboldt (staff and student interns) and other local tourism organizations. c. Develop public/private partnerships to support and encourage development projects. d. Market and sell vacant Alder Grove Industrial Park parcels. e. Develop schedule and plan for Happy Valley business park development. f. Initiate project to develop wayfinding and placemaking for Downtown and Valley West. g. Develop an Economic Development program with staff support that includes implementation of Economic Strategic Plan goals, City Council goals, and other priority projects.
7. Prioritize Future Planning
a. Finalize redevelopment planning and Surplus Land Act process for Happy Valley and Little Lakes Properties. b. Implement SB 1383 and new franchise agreement for solid waste and organic recycling services.
8. Implement the Arcata Arts Strategic Plan by working with existing arts efforts established in the community. a. Continued engagement with the arts and culture community to identify ways to bring art into the community. If additional funding is identified, complete a third call for arts in the Arts around Arcata program.
9. Climate Change and Climate Adaptation
a. Finalize, adopt and begin implementation of the Climate Action Plan. b. Continue sea level rise adaptation planning and implementation strategies including research, analysis, project implementation and strategic property acquisition to support long term climate change adaptation. c. Develop a climate resiliency pipeline of projects to cohesively synthesize citywide effort and leverage potential funding sources.
10. Parks Improvements
a. Finalize agreements and licenses and begin construction of the Annie Mary Trail (A&M). b. Consider areas for increased public access to garbage and recycling cans and sharps disposal within City properties. c. Pilot the opening of restrooms at Redwood Park during park visiting hours and assess if a Portland Loo style bathroom is a more appropriate facility.
d. Implement basketball court improvements at Redwood Park. Page 22 of 23 City of Arcata: FY 2025-26
11. Safe Streets: Transit and Alternative Transportation Systems a. Develop conceptual alternatives for safety improvements on K Street between 8th and 12th Streets to slow traffic and improve safety at crossings.
12. Proactively maintain a strong partnership with Cal Poly Humboldt focused this year on:
Maintain regular communication with Cal Poly Humboldt through quarterly liaison meetings and identify opportunities to create a sense of community and better understand the needs of the student population in regard to housing and transportation.
13. Explore options to support Spanish translation of Council meetings including agendas as needed.
14. Diversity, Equity and Inclusion
a. Coordinate efforts of the Arcata Chinatown Project.