9.7%
277 - ROAD MAINT & REHAB
ACCOUNT
20.5%
291 - CDBG FEDERAL GRANT
0.8%
346 - SCRC BOND DEBT
SERVICE
0.5%
347 - CRA BOND DEBT SERVICE
10.5%
527 - WATER FUND
16.2%
540 - WATER SUPPLY &
EXTENSION
5.6%
567 - SEWER SERVICE
36.1%
129
ATTACHMENT A
ITEM 11
CITY OF CERES
FY 2025-26 PROPOSED BUDGET
DEPARTMENT 95 - CIP & DEBT SERVICE
UNAUDITED UNAUDITED
CAPITAL OUTLAY ACTUAL ACTUAL PROJECTION BUDGET
ACCT # - DESCRIPTION FY 22-23 FY 23-24 FY 24-25 FY 25-26 059000 - DEPRECIATION EXPENSE 2,022,492 2,087,832 - - CAPITAL OUTLAY TOTAL 2,022,492 2,087,832 - -
UNAUDITED UNAUDITED
DEBT SERVICE ACTUAL ACTUAL PROJECTION BUDGET
ACCT # - DESCRIPTION FY 22-23 FY 23-24 FY 24-25 FY 25-26 043500 - COST OF ISSUANCE 439,391 273,110 258,592 258,592 599400 - ERCDC LED STREET LIGHT LOAN 118,979 118,979 154 - 742600 - 2000 TAX ALLOCATION BOND 107,115 108,120 90,399 108,471 743000 - 2006 TAX ALLOCATION BOND CRA 1,756,600 1,754,200 1,451,300 1,719,248 743300 - CRA 2015 TAX ALLOC BOND 583,100 580,975 481,113 623,827 DEBT SERVICE TOTAL 3,005,184 2,835,384 2,281,557 2,710,138
UNAUDITED UNAUDITED
CAPITAL IMPROVEMENT PROJECTS ACTUAL ACTUAL PROJECTION BUDGET ACCT # - DESCRIPTION FY 22-23 FY 23-24 FY 24-25 FY 25-26 132300 - STORM DRAIN MASTER PLAN 6,028 43,213 38,555 - 132600 - RIVER BLUFF TANK DESIGN/ENVIRO 32,283 38,766 662 - 150500 - GENERAL PLAN UPDATE & EIR 4,015 5,143 - - 151500 - SERVICE/MITCHELL IMPROVEMENTS 711,155 609,061 34,068 - 160200 - LOWER RIVERBLUFF-PH I 3,086 11,701 6,459 - 160600 - ITS SIGNAL SYNCH-PH III 101,206 - - - 160900 - ITS SIGNAL SYNCH-PH IV 151,068 - - - 161200 - SRVC/MITCHELL STREET PROJ 129,805 - - - 161800 - UPGRADE STORM LIFT STATION 26,529 - - - 170400 - EASTGATE PARK DESIGN - - 4,537 - 174900 - ACE STATION IMPROVEMENTS 144 - - - 176400 - TRAFFIC SIGNAL TIMING OPTIMAZA 13,442 - - - 200100 - PH1 FS/3 TRAINING FACILITY SIT 10,390 2,211 6,757 - 200400 - CDBG PROJECT - 37,678 - - 200600 - ATP SRTS MORGAN CORRIDOR (PE) 8,010 - - - 200900 - SWR & STRM DRAIN L/S UPGRADES 72,427 - - - 201300 - IRRIGATION SYSTEM IMP/WTR CONS 345 - - - 800500 - CA
PITAL PROJECTS 30,487,631 20,023,672 11,807,256 19,504,000 CAPITAL IMPROVEMENT PROJECT TOTAL 31,757,563 20,771,444 11,898,293 19,504,000 DEPARTMENT 95 - CIP & DEBT SERVICE TOTAL 36,785,239 25,694,660 14,179,8 50 22,214,1 38 130
ATTACHMENT A
ITEM 11
PROPERTY TAX – Property Tax is imposed on real property (land and permanently attached improvements such as buildings) and tangible personal property (movable property) located within the City. Property is appraised at the 1975–76 base year value and is adjusted each year after 1975 by a 2% inflation factor.
When property changes ownership, it is reassessed at current market value. Proposition 13 limited the property tax to 1% of assessed valuation. The County collects the tax and remits to the City when the tax is due. The City is on the Teeter Plan and receives three payments from the County each year, based on the property tax roll, not collections. The State has been shifting property tax to the schools since the 1992–93 fiscal year.
SALES AND USE TAX – Sales and use tax is imposed on retailers for the privilege of selling at retail, within the City limits. The tax is based on the sales price of any taxable transaction of tangible personal property.
Leases are considered a continuing sale or use and are subject to taxation. The State Board of Equalization collects sales tax for cities and counties. Under an agreement with the County of Stanislaus, Ceres receives
0.95% of its local 1% share, and the County gets the remaining 0.05%.
UTILITY USERS TAX – Utility Users Tax is imposed on the consumer of natural gas, cable television, electric, and telephone services. The municipal excise tax is collected by the utility as part of the regular utility billing procedure and remitted to the City. The rate went down from 5% of the utility bill to 3% August 1, 1998.
TRANSIENT OCCUPANCY TAX – Transient Occupancy Tax is imposed on the occupancy of a room or rooms in a hotel, motel or other lodging facility. The rate is 10% and the motel owner collects and remits the tax to the City. The City currently has two motels, Howard Johnson Express Inn and Microtel Inn, and one extended stay hotel, WoodSpring Suites.
TRANSFER TAX – Transfer tax is imposed on the transfer of real property. The City and County each receive $0.27½ per $500 value exclusive of any lien or remaining encumbrance on the property. The County remits the tax to the City.
MOTOR VEHICLE IN -LIEU (VLF) – A special license fee is imposed annually by the State in lieu of local property taxes. The City receives an allocation from the State based on population.
FRANCHISES – Franchise Fees are imposed on natural gas (5%), solid waste collection (10.5%), and cable television (5%) companies for the privilege of using City rights –of–way for profit. The fees are collected by the companies and remitted to the City.
131
ATTACHMENT A
ITEM 11
BUSINESS LICENSE TAX – Business license tax is a type of excise tax imposed on businesses for the privilege of conducting business within the City. The tax is based on gross receipts or a flat rate depending on the type of business. Licenses are issued annually and taxes are paid quarterly.
PERMIT FEES – The City engages in certain regulatory activities in the interest of the overall community.
The City charges user permit fees as a means of recovering the cost of benefit services for specific users.
Examples of permit fees are building, plumbing, electrical, encroachment, fireworks booths , and transportation.
INTEREST – Funds not needed for immediate use are invested in Local Agency Investment Fund (LAIF), Treasury Notes, Agency Notes or Corporate Notes. The City uses a pooled cash investment strategy.
Interest earnings on pooled cash are allocated back to the contributing funds. The allocation is based on the respective cash balances at the end of the month.
HIGHWAY USERS TAX – The State allocates a portion of gasoline tax revenues to cities under four distinct funding categories. Revenue from this code section is apportioned as follows: section 2105 per gallon tax, section 2106 vehicle registration assessed valuation, section 2107 population. Expenditures from these three funding categories are restricted by the State for street purposes only. Section 2107.5 is apportioned based on population and expenditures are further restricted to engineering cost and admi nistrative expense.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) – Funds are allocated by the Federal government to eligible local agencies for housing and community development purposes. Within general program guidelines to assure that federal program goals are being met, cities determine their own projects and priorities.
FEDERAL FUNDS – The Federal government passes through these funds to the City for transit and street related purposes. Revenue is requested for budgeted projects. Projects include medians, street overlay, curb gutter, and sidewalks.
STANCOG - LOCAL TRANSPORTATION / DIAL -A-RIDE / NON -MOTORIZED – These funds are local transportation funds restricted to transit, street, pedestrian and bike purposes. Revenue is requested by project.
WATER SERVICE – The City provides water to the citizens. The rate is based on the cost to provide the water.
132
ATTACHMENT A
ITEM 11
SEWER SERVICE – The City provides sewer service to the citizens. The rate is based on the cost to provide the service.
GARBAGE SERVICE – The City provides garbage collection service to the citizens. The rate is based on the cost to provide the service.
DEVELOPMENT AGREEMENT PUBLIC BENEFIT FEES – A Development Agreement is any contractual agreement between the City and the owner of real property within the City and are entered in to in order to encourage and support business activities. The City charges public benefit fees as a means of recovering the cost of benefit services for specific users.
133
ATTACHMENT A
ITEM 11
ALLOCATED COSTS – The City of Ceres allocates the cost of electricity, gas, water, telecommunications, postage, building maintenance, IT, fleet, and duplicating supplies based on an analysis of square footage, usage, headcount, and/or equipment.
APPROPRIATION – A specific amount of money authorized by the City Council for the expenditure of a designated amount of public funds for a specific purpose.
ASSESSMENT DISTRICT – Per Government Code, an area of the City in which the residents pay an annual assessment for a service that specifically benefits them. The City of Ceres has three assessment districts, Westpointe, Landscape & Lighting, and Community Facilities District.
AUDIT – Prepared by an independent certified accountant (CPA), the primary objective of an audit is to determine if the City’s Financial Statements present fairly the City’s financial position and results of operations in conformity with generally accepted accounting principles.
BALANCED BUDGET – A budget in which planned expenditures do not exceed planned funds available.
BOND – A written promise to pay a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long –term debt to pay for specific capital expenditures.
BUDGET – An annual financial plan that identifies revenues, types and levels of services to be provided, and the amount of funds that can be spent. The Ceres Operating Budget encompasses one fiscal year, as does the Capital Improvement Program.
CAPITAL IMPROVEMENT PROGRAM – A plan for capital expenditures to be incurred each year over a fixed period of years to meet the need for buildings and improvements, with an individual value of $100,000 or more. It sets forth each project or other contemplated expenditure in which the City is to have a part and specifies the resources estimated to be available to finance the projected expenditures.
CAPITAL OUTLAY (Fixed Assets) –Buildings, equipment and improvements with a useful life of more than one year, such as computer equipment, and office furniture, and with a cost greater than $5,000, which are part of the operating budget.
CONTINGENCY – A budgeted reserve set aside for unanticipated expenditures, typically associated with capital projects. Council authorization is required to transfer the necessary amount to the appropriate expenditure account.
134
ATTACHMENT A
ITEM 11
DEPARTMENT – The highest organizational unit that is responsible for managing divisions within a functional area.
DEPARTMENTAL OBJECTIVES – A description of the department’s activities and function.
DIVISION – An organizational unit that provides a specific service within a department.
ENTERPRISE FUND – A type of fund established to account for the total costs of governmental facilities and services that are operated in a manner similar to private enterprise. These programs are entirely or predominately self-supporting. The City has two Enterprise Funds, water and sewer.
FISCAL YEAR – The beginning and ending period for recording financial transactions. The City has specified July 1 through June 30 as its fiscal year.
FUND – An accounting entity that records all financial transactions for specific activities or government functions. The four generic fund types used by the City are: General, Special Revenue, Enterprise, and Internal Service.
FUND BALANCE – The excess of the assets of an expendable fund over its liabilities and reserves, similar to equity. This is not necessarily the cash balance.
GENERAL FUND – The primary fund of the City, used to account for all revenues and expenditures traditionally associated with city government and not legally restricted as to use. The biggest expenditure of the General Fund is the Public Safety Department.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) – Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the basic financial statements for an entity. GAAP encompasses the conventions, rules, and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines for general application, but also detailed practices and procedures. GAAP provides a standard by which to measure financial presentations.
GRANT FUNDS – Money received from another government such as the State or Federal Government restricted to a specific purpose.
INFRASTRUCTURE – A substructure or underlying foundation on which the continuance or growth of the community depends, such as streets, roads, transportation systems, etc.
135
ATTACHMENT A
ITEM 11
INTERNAL SERVICE FUND – The City uses Internal Services Funds to account for services provided by one department to other departments on a cost reimbursement basis. Costs are allocated for Liability Insurance, Workers Compensation Insurance, Information Technology, Building Maintenance, Vehicle Maintenance and Replacement back to the departments based on usage, square footage, personnel costs, or actual cost.
INVESTMENT POLICY – Government code requires the Treasurer to submit an investment policy to the Council. The policy provides guidelines for the prudent investment of the City’s temporary idle cash.
MODIFIED ACCRUAL – Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Expenditures are recorded when the related fund liability is incurred. The City uses a modified accrual basis of accounting.
OPERATING BUDGET – The portion of the budget that pertains to daily operations providing basic governmental services.
PROPOSITION 4 - GANN INITIATIVE LIMIT – The City is required, under Article XIII.B of the State Constitution to limit appropriation from the proceeds of taxes. The annual appropriation limit is based on data received from the State, including various growth measures such as population, CPI, and nonresidential construction changes.
RESERVE – An account used to indicate a portion of fund balance that is legally restricted for a specific purpose and is, therefore, not available for general appropriation.
STRUCTURAL DEFICIT – Refers to ongoing operating revenues that are lower than ongoing operating expenses. This imbalance is not the result of one -time events like a recession, emergency spending or capital projects, but rather a long term, underlying budgetary shortfall. 136
ATTACHMENT A
ITEM 11
1This number does not include the Council – one (1) Mayor, one (1) Vice Mayor, and three (3) Council Members, and one (1) City Treasurer positions.
COUNCIL AGENDA REPORT
CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: June 9, 2025
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Delilah Vasquez, Human Resources Director
[email protected], (209) 538-5772
SUBJECT: City of Ceres Workforce Vacancies, Recruitment , and Retention Efforts
RECOMMENDED COUNCIL ACTION:
Staff recommend the City Council receives the presentation for information purposes only during the public hearing at which the City will report on workforce vacancies, recruitment, and retention efforts.
I. BACKGROUND:
AB 2561 was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies conduct a public hearing to present the status of vacancies, recruitment, and re tention efforts during a public hearing before the agency’s governing body at least once per fiscal year prior to the adoption of the next fiscal year’s budget and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. The bill was enacted into law and is codified as Government Code section 3502.3, effective January 1, 2025.
Additionally, if the number of vacancies meet or exceed 20% of the total number of authorized full-time positions in a particular bargaining unit, the employee organization may request additional information.
Government Code 3502.2 entitles recognized employee organizations, regardless of the vacancy rate, to make a presentation before the governing board of a public agency during the same public hearing in which the public agency makes its annual presentation on vacancies.
ITEM 12
1This number does not include the Council – one (1) Mayor, one (1) Vice Mayor, and three (3) Council Members, and one (1) City Treasurer positions.
There are five (5) bargaining groups at the City consisting of 1681 authorized regular full- time positions. As of December 31, 2024, the vacancy rate for each bargaining is as follows:
Table 1: Vacancy Rate by Bargaining Group as of December 31, 2024.
City of Ceres Bargaining Group Position Count Vacancy Rate First Line Supervisor 19 0%
Mid Managers 7 0%
Miscellaneous 91 6.75%
Police Officers’ Association 47 27.78%
Public Safety Mid Managers 4 0%
Unrepresented Department Heads 6 0%
The Human Resources Department recognizes recruitment is about identifying, attracting, and selecting the most qualified candidate for a position, and retention is about keeping employees engaged, satisfied, and committed to the organization long-term.
To assist in recruitment and retention efforts, the council approved the lateral transfer incentive policy, accelerating vacation accruals, front-loading vacation and sick leave for hard to recruit positions later transfers which reduces the time and expenses required to train employees to perform essential City service. Council also authorized a 5% longevity pay for several bargaining units in an effort to reduce turnover and recognize institutional knowledge.
II. REASONS FOR RECOMMENDATION:
Receive the informational report on the City of Ceres job vacancies, recruitment, and retention efforts to comply with the requirements of Government Code section 3502.3, enacted through AB 2561 and effective January 1, 2025 . The hearing will provide transparency regarding workforce challenges, ensure community engagement, and support informed decision-making as part of the upcoming fiscal year’s budget process.
Additionally, it offers an opportunity to identify and address any internal policies or procedures that may be contributing to hiring obstacles, in alignment with the law’s intent to strengthen public service delivery and reduce employee workload due to understaffing.
III. FISCAL IMPACTS:
There is no fiscal impact associated with the public hearing required under Government Code 3502.3.
IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:
Government operations: Provie quality services to meet community needs, assuring the City is helpful, possess a skilled and well -qualified workforce, properly equipped, and sufficient staff who partner with other public agencies to provide efficient services.
ITEM 12
1This number does not include the Council – one (1) Mayor, one (1) Vice Mayor, and three (3) Council Members, and one (1) City Treasurer positions.
V. POLICY ALTERNATIVES:
N/A
VI. INTERDEPARTMENTAL COORDINATION:
N/A
VII. PUBLIC PARTICIPATION:
The presentation was properly noticed for the June 9, 2025, City Council meeting.
VIII. ENVIRONMENTAL REVIEW:
N/A
IX. STEPS FOLLOWING APPROVAL:
No further action required once council accepts the report.
Approved by: _____________________
Douglas D. Dunford,
City Manager
Attachments:
1. Attachment A – Presentation
2. Attachment B – Public Hearing Notice
ITEM 12
ITEM 12
Presented by Delilah Vasquez, Human Resources Director
AB 2561 Presentation on the City of Ceres
Vacancies and Retention Efforts
ATTACHMENT A
ITEM 12
R E C O M M E N D A T I O N
1. Adopt a Resolution entitled, City of Ceres Workforce Vacancies, Recruitment and Retention Efforts
2. Conduct a public hearing regarding the City of Ceres Workforce Vacancies, Recruitment, and Retention Efforts presentation.
ATTACHMENT A
ITEM 12
B R I E F O V E R V I E W O F A B 2 5 6 1
Vacancies, Recruitment & Retention
Annual Public Hearing
Identify Hiring Obstacles
ATTACHMENT A
ITEM 12
R E C R U I T M E N T P R O C E S S O V E R V I E W
A S O F M A R C H 3 1 , 2 0 2 5
Recruitment
RequisitionVacancy Job Posting
Pre-Employment
Process
Candidate
Interviews
Application
Screening
Conditional Job
Offer Job Placement
ATTACHMENT A
ITEM 12
2 0 2 4 Y E A R E N D V A C A N C Y R A T E
Bargaining Group Budgeted Positions Vacancy Rate
First Line Supervisor 15 0%
Mid Managers 7 0%
Miscellaneous 90 6.75%
Police Officer’s Association 45 27.78%
Public Safety Mid Managers 4 0%
Unrepresented Department Heads 6 0%
TOTALS 168
ATTACHMENT A
ITEM 12
2 0 2 4 R E C R U I T M E N T E F F O R T S
54 Vacant
Positions
41 Job Postings
1,594
Applications
Received
49 Vacancies
Filled
• Median time to fill vacancies: 68 days
• Percentage of vacancies filled with internal candidates: 18.52%
ATTACHMENT A
ITEM 12
2 0 2 4 V A C A N C Y D A T A
Vacancy Reason # of Vacancies
Voluntary Separation 30
Internal Promotion 10
Newly Budgeted Position 3
Retirement, Termination 10
Total 53
Retention rate = 78.57%
ATTACHMENT A
ITEM 12
R E C R U I T M E N T & R E T E N T I O N S T R A T E G I E S Hiring Incentives Employee Recognition
Programs
Work-Life BalanceTargeted Recruitment
Strategies
Longevity Pay Professional Development
ATTACHMENT A
ITEM 12
Q U E S T I O N S
ATTACHMENT A
ITEM 12
ITEM 12
ATTACHMENT B
{CW116206.2}
City of Ceres
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN THAT THE CERES CITY COUNCIL will hold a public hearing in the Council Chambers at 2701 Fourth Street, Ceres, CA, on June 9, 2025 , at 6:00 p.m. or as soon as possible thereafter, to receive and consider all evidence and reports relative to adoption of a resolution of the City of Ceres Workforce Vacancies, Recruitment and Retention Efforts.
California Government Code 3502.3 requires public agencies conduct a public hearing to present the status of vacancies, recruitment, and retention efforts before the agency’s governing body at least once per fiscal year prior to the adoption of the next fiscal year’s budget.
All Interested parties are invited to attend said hearing and express opinions or submit evidence for or against proposal as outlined above.
Further information on the above hearing may be obtained or viewed at the office of the City Clerk, City Hall, 2220 Magnolia Street Ceres, CA 95307 or by telephone at (209) 538-5731.
If a citizen wishes to challenge the nature of the above actions in court, they may be limited to raising only those issues they or someone else raised at the public hearing described in the notice, or in written correspondence delivered to the City of Ceres, at, or prior to the public hearing.
/s/ Fallon Martin, City Clerk
Date Notice Posted: May 28, 2025
ITEM 12
ITEM 12