CLOVIS CITY COUNCIL MEETING
April 21, 2025 6:00 P.M. Council Chamber
Meeting called to order by Mayor Mouanoutoua at 6:00
Flag Salute led by Councilmember Mayor Pro Tem Pearce
Roll Call: Present: Councilmembers Ashbeck, Basgall, Bessinger, Mayor Pro Tem Pearce Mayor Mouanoutoua
PRESENTATION - 6:01
6:01 - ITEM 1 - Presentation of Proclamation declaring April as National Donate Life Month.
PUBLIC COMMENTS - 6:07
Steven Trevino, resident, expressed concern about the lack of a fire station at the former site on Fowler and Alluvial.
CONSENT CALENDAR - 6:11
Upon call, there was no public comment.
Motion by Councilmember Ashbeck, seconded by Councilmember Bessinger, that the items on the Consent Calendar be approved. Motion carried by unanimous vote.
2. Administration - Approval - Minutes from the April 14, 2025, Council Meeting.
Administration - Approval - Award the Request for Proposals (RFP) and approve the purchase of Cisco Network Hardware to AMS.NET for $81,278.02 plus shipping.
4. Administration - Approval - Res. 25-33, Approving an application to the California State Department of Housing and Community Development for funding in the amount of $500,000 under the HOME Program for First-Time Homebuyer (FTHB) Program Activity; and Authorizing the City Manager, or designee, to sign the application, execute the Standard Agreement, any Amendments, and any related documents thereto, if selected for funding, as may be necessary to participate in the HOME Program as identified in the HOME Investment Partnerships Program (HOME) 2024 Notice of Funding Availability (NOFA) dated December 30, 2024.
Administration - Approval - Res. 25-34, Establishing Governing Criteria for the Measure Y Oversight Committee.
6. Fire - Approval - Res. 25-35, Amending the 2024-2025 FY Fire Department Budget to reflect the $31,000 awarded in 2024 State Homeland Security Grant Program (SHSGP) to fund Fire Department radio equipment.
General Services - Approval - Res. 25-36, Amending the City's FY 2024-2025 Position Allocation Plan by adding one (1) Senior Management Analyst Position and removing one (1) Management Analyst Position within the Police Department.
General Services - Authorize the City Manager to Approve hiring a Staff Analyst, currently vacant, in the Police Department at Step 5 of the Salary Range with an Effective Date of May 1, 2025.
Planning and Development Services - Approval - Final Acceptance for CIP 23-14 Sierra Vista Sidewalk Improvement for a final contract cost of $772,410.14.
10. Planning and Development Services - Approval - Final Acceptance for CIP 21-21 Sunnyside Avenue Street Improvements for a final contract cost of $1,845,372.22.
11. Police - Approval - Res. 25-37, Authorizing the Police Chief to execute the 2024-2025 Department of Justice Tobacco Grant Agreement and amend the Police Department budget to reflect the award of $84,500.00.
12. Public Utilities - Approval - Preliminary Engineer's Report; and Approval - Res. 25-38, a Resolution Declaring the City's Intention to Levy and Collect the Annual Assessments for Landscape Maintenance District No. 1.
ADMINISTRATIVE ITEMS - 6:12
6:12 ITEM 13 - Consider Approval - Award Recycling and Organic Material Collection, Processing, and Marketing Services Agreement to Mid Valley Disposal, and Authorize the City Manager to Execute the Agreement on Behalf of the City.
Alyssa, resident, addressed issues related to organic waste and the use of compostable green plastic bags to help mitigate fly problems.
Belva Mayes, resident, suggested Council consider selecting a new waste collection company, citing long-standing issues with Republic Services.
Bill Scott, resident, expressed concerns over the recent waste hauler bidding process and urged accountability and transparency moving forward, especially when preparing the budget.
Eric Rollins, resident, suggested Council move forward with the recommended option by staff.
Steven Trevino, resident, expressed confusion over the waste hauler selection process, stating that the lack of visual aids like graphs and insufficient public explanation.
Ashlee Cawley, Municipal Manager for Republic Services in Clovis, encouraged the Council to consider Republic Services.
Keith Hester, General Manager with Caglia Environmental, stated that Mid Valley's proposal was unsustainable due to significantly understated labor costs and missing personnel, making it non- responsive to the RFP.
Joe Heisdorf, Chief Financial Officer with Mid-Valley Disposal, explained that their proposal followed the same RFP format used in 2014, and was based on updated operational assumptions for city growth.
German Hernandez, General Manager for Republic Services, emphasized the company's strong commitment to safety and stated that based on recent discussions, Republic is open to revisiting their previously submitted rate proposals.
Richard Caglia with Caglia Environmental, expressed frustration with the RFP process.
Nathan George with Remy Moose Manley, Legal representative of Caglia Environmental, raised concerns about irregularities in the RFP process and noted potential conflicts of interest.
Motion for approval by Mayor Pro Tem Pearce, seconded by Councilmember Bessinger. Motion carried by 3/2 vote. Councilmember Ashbeck and Councilmember Basgall voted no. 7:21 ITEM 14 - Provide Direction - 2025/26 Budget Priorities - Measure Y Session #2.
Brian Wilson, resident, urged the Council to prioritize using Measure Y funds to restore police and fire services.
Eric Rollins, resident, expressed concern about the City's deficit without Measure Y funds and emphasized the importance of allocating funds to maintain public safety.
Bill Scott, resident, addressed concerns with spending and inflation impacts on residents.
CITY MANAGER COMMENTS - 7:59
City Manager Haussler announced that Clovis was recently ranked as the third best city in California to move to, highlighting safety, affordability, and the economy as key factors, and he encouraged the community to enjoy Rodeo Week and attend Trail Fest in two weeks.
COUNCIL COMMENTS - 7:59
There was no formal Council direction to staff.
CLOSED SESSION - 8:10
Upon call, there was no public comment.
ITEM 15 - Government Code Section 54956.9(d)(1) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Case Name: Desiree Martinez v. City of Clovis, et al., Case No. 19CECG03855
ITEM 16 - Government Code Section 54957.6 CONFERENCE WITH LABOR NEGOTIATORS Agency designated representatives: Andy Haussler, Paul Armendariz, Amy Hance, Scott Cross Employee organization: All bargaining units
RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED SESSION No action taken.
*
ADJOURNMENT
Mayor Mouanoutoua adjourned the meeting of the Council to May 5, 2025.
Meeting adjourned: 9:51 p.m.
Brana.
Mayor City Clerk
Public Comment for
April 21, 2025
Rebecca Simonian
From: City of Clovis Website < [email protected]> Sent: Friday, April 11, 2025 3:20 PM
To: Andrew Haussler; Rebecca Simonian; Briana Parra
Subiect: [External] Public Comment for City Council
Council Meeting Date: 2025-04-21
Item Number (put "O" if your comment is regarding an item not on the agenda): 0 Full Name: Brian Watt
Email: [email protected]
Comment: I would like the city council to consider updating the policy regarding basketball hoops in the street. I recently received a citation for my kids basketball hoop left in the street not in use. My daughter plays for Alta Sierra and plays year round with the Buchanan girls development programs. Having to move it in and out of the street is not realistic. I travel for work and my wife and daughter are not able to move the hoop themselves. How can the city be against child getting physical activity? What is needed to get this code changed.
I spoke with my neighbornoticed
Supporting Files (2 Max.):
Date: April 11, 2025
Time: 3:19 pm
Remote IP: 104.180.5.96
Public Comment for
April 21, 2025
1 Briana Parra
From: City of Clovis Website < [email protected]> Sent: Wednesday, April 16, 2025 11:15 AM
To: Andrew Haussler; Rebecca Simonian; Briana Parra
Subject: [External] Public Comment for City Council
Council Meeting Date: 2025-04-14
Item Number (put "O" if your comment is regarding an item not on the agenda): 0 Full Name: Kimberly Sanchez-Quintero
Email: [email protected]
Comment: Good Evening,
I recently attended a community meeting with Fresno residents, where | learned that 48% of their budget goes to the Fresno Police Department. I voted to increase taxes in Clovis so bolster programs like the fire department, education, libraries, and public works, not the Clovis Police Department. Please do not use the funds in Measure Y to hire new officers or increase fleets or equipment for Clovis PD. As a resident, I feel safe and supported by my community when there are ample resources available, not increased police presence. Thank you for your time.
Kind Regards,
Kim
Supporting Files (2 Max.):
---
Date: April 16, 2025
Time: 11:14 am
Remote IP: 98.51.14.39
To: Clovis City Council
From: Residents of The Fountains in Clovis
Re: Current Garbage Company, Republic Services
We would like to request the Clovis City Council look for a new and different company to collect our trash. It is true Republic Services has been the garbage company for 34+
years and we think it is time to look elsewhere. We live in a 55+ community with people who use a cane, have walkers, wheelchairs, scooters, etc. These people try to remain active by taking their garbage to the big bins. Many times, the big bins are turned so the opening is toward the wall and they can't deposit their trash. It is not only difficult and confusing for them, but also dangerous. The fact that Republic
Services has been told over and over again has not produced much success. The manager of the apartment complex,
maintenance manager, and other residents have, quite
often, turned the large garbage receptacles around so the other members of the community can utilize them.
Also, quite often, pieces of garbage are left on the ground and the maintenance manager has to clean it up. This is not his job!
We have had this company in the past and we suggest we try another company in the future. What does it hurt?
Thank you for your consideration...
REPUBLIC
SERVICES
Sustainability in Action
Committed to the City of Clovis
REPUBLIC
The City of Clovis is currently in an RFP process to select the next recycling and organics hauler.
Republic Services has been the proud hauler in the beautiful City of Clovis for 34+ years. We encourage you to reach out to your honorable City Council members to voice your support for Republic Services and attend the April 21st City Council meeting. Thank you.
City Council Meeting
YOUR OPINION
MATTERS Address: 1033 Fifth Street., Clovis, CA 93612
Time: 6 p.m.
Date: April 21, 2025
Mayor Vong Mouanatoua - [email protected]
Mayor Pro Tem Diane Pearce - [email protected]
Council Member Lynne Ashbeck - [email protected]
Council Member Matt Basgall - [email protected]
Council Member Drew Bessinger - [email protected]
1 PC
4/21|2025
AGENDA NO. 14
CITY OF CLOVIS CLOY
SALES TAX UPDATE
3Q 2024 (JULY - SEPTEMBER)
CLOVIS -4.7% -3.0% -2.3%
TOTAL: $7,438,528 3Q2024 COUNTY STATE
"Allocation aberrations have been adjusted to reffect sales activity SALES TAX BY MAJOR BUSINESS GROUP $2,400,000
$2,000,000
$1,600,000
$1,200,000
$800,000 Legend
Q3 2023°
$400,000
Q3 2024°
50 General Autos County Restaurants Building Fuel and Food Business Consumer and and State and and Service and and
Goods Transportation Pools Hotels Construction Stations Drugs Industry CITY OF CLOVIS HIGHLIGHTS TOP 25 PRODUCERS
Clovis' receipts from July through stabilizes, while advantages to consumers, | 84 Lumber Co Target September were 11.2% below the third is challenging for sales tax revenue due to Anlin Windows & Doors TJ Maxx sales period in 2023. Excluding reporting the declining demand. Arco Toyota of Clovis aberrations, actual sales were down 4.7%. Vons
The food-drug category felt soft proceeds Best Buy
General consumer goods had meager at grocery and convenience/liquor stores Clovis Chrysler Dodge Vons Fuel / Jeep Ram Walmart Supercenter
proceeds at electronics/appliance and as shoppers looked to discount stores for family apparel stores as consumers better bargains. Likewise, the business- Costco limited their purchases during this period. industry group experienced dreary Decker Ford The autos-transportation category revenues from garden/agricultural supply Dick's Sporting Goods experienced discouraging sales from vendors during this quarter. Future Kia new and used car dealers as consumers Hedrick's Chevrolet choose to maintain their current vehicles The restaurant-hotel sector showed Home Depot while financing interest rates remain high. optimistic gross receipts at quick service and fast casual dining primarily Honda North
Building-construction receipts due to higher menu prices businesses Johnny Quik gross
were bleak, as building materials and implemented in order to mitigate the Lithia Nissan of Clovis contractors saw less demand for their new minimum wage increase, which took Lowes services as homeowners and businesses effect in the spring. McDonald's delay making improvements to their Ross
property until the economy improves. Net of aberrations, taxable sales for all | Save Mart
Fuel-service stations had dismal returns of Fresno County declined 3.0% over the at the pumps as increase fuel supply comparable time period; the San Joaquin Sinclair Valley was down 2.9%.
Hal® Companies
www.hdicompanies.com | 888.861.0220 Published by HdL Companies in Winter 2025 3Q 2024 CITY OF CLOVIS SALES TAX UPDATE
STATEWIDE RESULTS
California's local one cent sales and use tax Fuel generating taxpayers had a rough mandated minimum wage requirements receipts during the months of July through quarter; a combination of consumption remained a challenge, with higher menu September were 2.3% lower than the declines and falling fuel prices thrust prices reducing patron visits. same quarter one year ago after adjusting comparisons down by 13%. Further for accounting anomalies. The calendar contraction of national drug store locations These sluggish results solidify 2024 as a down year. Recent reductions to the Fed
year third quarter traditionally is noted for coupled with the steady fall from cannabis Funds Rate aren't considered to help until
pleasant weather and statewide tourism; merchants dating back to 2021, caused a later in 2025. Agencies should expect
however, taxes fell when compared to a decrease of 2.8% in the food-drugs category. year ago. As such, it also means a weak Expect similar percentage declines for the fiscal year 2024-25 sales taxes to stay flat or decline slightly as sluggish economic
start of the 2024-25 fiscal year for many upcoming end of 2024 quarter. conditions leave consumers cautious in their
California agencies.
Although statewide tourism appears to spending patterns, especially for big ticket Once again, autos-transportation receipts have improved over 2023, revenue from items and discretionary products. took a hit and declined 4.8%. This period restaurants experienced only a modest gain marks the seventh consecutive quarter of of 0.7%, which included a dramatic drop downturn for the sector. While used autos from fine dining establishments - consistent returns and leasing activity have improved, with spending trends in other sectors. State revenues from new car sales struggled due
to sustained high interest rates, tightened
credit standards, and increased cost of SALES PER CAPITA* auto insurance. As such, inventories for
many dealers remain elevated, applying
$8,000
downward pressure on prices and growth
$6,000
into 2025.
$4,000
The summer season is usually an
advantageous time for home repairs and $2,000
construction work, however, this industry
$0
is also struggling with high consumer Q3 Q3 Q3 Q3
21 22 23 24
interest rates and limited access to equity
for homeowners. New projects remain Clovis County California
ONOMIC DA
sidelined as developers await more
favorable investment conditions.
TOP NON-CONFIDENTIAL BUSINESS TYPES
Brick-and-mortar general consumer
retailers pulled back 3.8% - worsened by Clovis County HdL State Business Type Q3 '24* Change Change Change
lower gas prices. Consumers appear more
New Motor Vehicle Dealers 1,177.4 -8.8% -2.9% -7.9% (
interested in lower priced/discounted items
Building Materials 743.0 -12.2% J -4.6% C -4.2%
vs higher priced/luxury goods, forcing Service Stations 448.0 -13.3% U -8.7% L -12.8% ( merchants to again consider inventory Casual Dining 414.9 0.8% 0.3% T 1.1% C needs. Additionally, competition from Quick-Service Restaurants 353.7 2.8% 1 1.3% T 1.0% 1 online merchants is as fierce as ever, as Family Apparel 202.6 -3.3% -10.0% 0 -0.2% A Grocery Stores 174.6 -1.5% J -2.0% C 1.4% C
shoppers look for greater value. With
Specialty Stores 162.3 -3.2% L -2.2% 1 -3.0% 1
holiday shopping around the corner, local
Automotive Supply Stores 125.3 3.2% O 1.4% C -0.7% b
store expectations remain soft. Electronics/Appliance Stores 118.9 -4.2% 3.3% 1 -5.1% O *Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
CALIFORNIA FORECAST
SALES TAX TRENDS & ECONOMIC DRIVERS
DECEMBER 2024
Mt. Baldy, San Bernardino County
Hdl® Companies
888.861.0220 | [email protected] | hdlcompanies.com HaLe STATEWIDE 2024/25 | 2025/26
SALES TAX TRENDS TOTAL -0.8% | 2.6%
Companies
Overview: Sluggish third quarter 2024 tax filings and mixed short-term performance coming from the eight groups noted below combine to reduce sales taxes expectations for fiscal year 2024-25. This negative outlook reflects a second year of statewide revenue declines. Contributing factors in this uncertain economy include higher business operating costs and to what extent Federal Funds interest rates may decline further into 2025. Looking ahead, election results have introduced additional economic uncertainty. Nationally, consumer confidence and sentiment recently soared but future policy decisions could exert upward pressure on prices, resulting in fewer sales transactions. 2024/25 | 2025/26 2024/25 | 2025/26
Autos/Transportation -0.9% | 3.5% Fuel/Service Stations -8.3% | 3.7% Affordability concerns have weighed on car sales, but a gradual The 13% decline in July to September payments revealed a drop easing of new vehicle prices, declining interest rates, and a strong in consumption, down 10% over the year ago quarter, as well as labor market are expected to support demand over time. With reductions in per gallon fuel rates paid by buyers. This sector again the average age of vehicles on the road now at a record 12.6 is expected to endure significant downward pressure on regular, years, significant pent-up demand has positioned the market for diesel, and oil barrel prices compared to a year ago. As a result, the recovery. Short-term factors, such as the threat of potential tariffs overall forecast in fiscal year 2024-25 is lower. Recent legislation and year-end incentives to clear excess inventory, could provide and regulations imposed on suppliers of fuel in California are likely a temporary boost. The recovery is likely to be gradual, however, to have an upward pressure on fuel prices, which will offset the as structural challenges including high insurance costs, limited overall reduction in sales tax toward the second half of 2025. As a affordable models, and added complexity posed by the transition result, anticipate a slow recovery beginning in fiscal year 2025-26. to electrification will continue to act as headwinds to the market.
Building/Construction -1.8% | 2.6% General Consumer Goods -1.9% | 1.4% A
Numerous classifications remained depressed throughout the third This quarter's results repeated much of what happened last quarter.
Sales at big box home improvement centers extended their slide quarter, contracting more than anticipated as the group absorbed while lumber and roofing supply sales held steady in the northern and some of the impact caused by lower gas prices. Despite cost southern ends of the state. Retailers providing rooftop solar materials reductions of some core goods, consumers battled stubborn inflation and installation have yet to find the bottom of that market as sales in non-taxable areas, forcing more attention on balancing needs versus wants. Brick-and-mortar storefronts remain in competition receded yet again. Asphalt and cement batch plants reported a stable sales volume overall, but any progress came from outside the Central with the convenience of and investment in online shopping which has Valley. Optimism for future construction-related gains has been added negative headwinds for overall direct tax allocations across this segment. The outlook is cloudy with expectations for lower dampened by the Fed's cautious and minimal adjustments to interest receipts throughout fiscal year 2024-25 and a return to mild growth rates so far, while the specter of higher tariffs and uncertainty over the in the following year driven by a bump in the overall costs of goods. future of the home loan industry leave many unanswered questions.
Business/Industry 0.0% | 1.8% Restaurants/Hotels 1.2% | 3.7% Ecommerce continues to rule as consumers embrace the convenience The restaurant industry is experiencing moderate growth. of shopping online. Related sales jumped and CA-based fulfillment substantiated by a 1% increase in the recent quarter. However, centers filled more "local" orders, contributing 27% of all B&l higher labor and food costs persist as significant challenges, revenues. While business-to-business edged a little higher, most leading to menu prices increasing about 7% on average over the other categories remained relatively flat or declined as economic last year. This trend is causing budget-conscious diners to reduce variables such as high interest rates stunted growth. The industrial their restaurant visits. Both fine dining and leisure-entertainment and information technology sectors broke even compared to last categories saw declines in 3rd quarter returns with price sensitivity year. Medical/-biotech, office supplies/furniture, and garden/ remaining a big factor. While recent hotel stays have slowed, the agricultural supplies all declined. Solar/energy projects across the outlook for room rates and occupancy in the coming year is positive.
State slowed as well. Given the diversity of this group, the outlook is modest. With twenty-one unique tax segments, predictions State and County Pools 3.0% | 3.5% IIII
vary widely based on the size and character of local businesses. Large audit corrections tied to county pools over allocations in prior years hurt cash payments in the third quarter of 2024, while Food/Drugs -1.8% | 0.4% economic basis gains of 3% were right in line with estimates for Grocery stores profits grew 1.4% as more customers ate at home this period. Retail ecommerce holiday season sales growth rose because of elevated restaurant menu prices, especially for lower- once again, doubling the increase seen at physical retail locations. income patrons. Convenience/liquor markets see as Perceptive companies looking to enhance sales are making future consumers pivot and buy more snack foods and alcohol at big box investments in warehouse automation, artificial intelligence tools, merchants. Cannabis retailers' gross receipts tumbled for the fourth and augmented reality; all with an eye toward directing shoppers consecutive quarter; yielding an (-11.6%) return over this period. to spend more purchasing time on devices to satisfy spending Additionally, national brands' recent announcements accelerating needs. The forecast captures steady year over year improvement, outlet closures could provoke drugstore graveyards while product overcoming the (-0.5%) decline that occurred fiscal year 2023-24. inventory is scarce in some local communities. As such, until the drugstore category is transformed, anticipate this group to finish lower at the end of June and fiscal year 2025-26 to stay relatively flat.
HdL Companies California Forecast
December 2024w
NATIONAL AND STATEWIDE
BEACON
ECONOMIC DRIVERS
ECONOMICS
2024/25 | 2025/26 2024/25 | 2025/26
U.S. Real GDP Growth 2.6% | 2.5% U.S. Unemployment Rate 4.3% | 4.1% As 2024 comes to an end, the U.S. economy continues to exceed • The nation's unemployment rate continues to hover around expectations. Real GDP growth has averaged 3% over the past historically low levels, despite rising slightly to 4.2% in November nine quarters, and preliminary data for the final quarter of 2024 2024. This rate represents an improvement over July 2024 and solid suggests this momentum remains intact. Beacon Economics wage growth continues to underscore the U.S. economy's strong expects real GDP growth to continue, driven by the strength of performance. In October 2024, there were approximately 1.1 job U.S. household finances, which in turn is characterized by falling openings for every unemployed person in the nation, indicating debt-to-income ratios, a decent savings rate, record high net a tight labor market despite a decline from 1.44 job openings worth, and rising real incomes. Consumer spending accounts for per person a year earlier. The U.S. job openings rate was 4.6% in nearly 70% of U.S. economic output, meaning when consumers October 2024, down from its peak in March 2022, but still at a are doing well, the broader economy tends to follow suit. historically elevated level, a sign of a persistently tight labor market.
CA Unemployment Rate 5.3% | 5.1%
CA Residential
While the U.S. unemployment rate held steady at 4.1% in October, California's labor market is showing clear signs of strain. The state's Building Permits 98,521 | 102,959 unemployment rate ticked up from 5.3% in September to 5.4% Residential permits in California have declined in eight of the last October 2024-0.3 percentage points higher than October twelve quarters YoY, including a nearly 13% drop in Q3 2024. High 2023 and a full percentage point above pre-pandemic levels. In interest rates and borrowing costs, which have strained the housing contrast, the national unemployment rate is just 0.5 percentage market for two years, continue to hinder progress. The current pace points above pre-pandemic levels, and without California, the of permitting remains far below what is needed to close the state's national unemployment rate drops to 3.98%. California's increased substantial housing supply gap. Although recent Federal Reserve unemployment rate is not driven by more people entering the labor rate cuts have lowered short-term borrowing costs and offered force, as the state's labor force participation rate has shrunk by relief to developers, the number of permits being issued remains far nearly one percentage point since February 2020. In September, lower than demand. With further rate cuts expected, modest growth California had nearly two unemployed individuals for every job in permits is likely, but without accelerated issuance and more opening; a ratio of 1.9. The U.S. ratio remains significantly lower aggressive efforts to increase supply, California's housing shortfall at 0.9, indicating that California's challenges may stem as much will persist, leaving homeownership out of reach for many residents. from a shortage of job openings as from a constrained labor force.
CA Median Existing
CA Total Nonfarm Home Price $719,877 | $728,425
Employment Growth 1.2% | 1.0% After several quarters of sluggish activity, California's housing Total nonfarm employment in California fell to approximately 18.1 market is beginning to show signs of recovery despite ongoing million on a seasonally adjusted basis in October, a decline of 5,500 affordability challenges. Single-family home sales rose nearly 11% positions. These losses were largely concentrated in the public sector, year-over-year in November 2024, with the median price up nearly while the private sector added 2,000 jobs. The state has faced three 6%. A drop in mortgage rates to 6.43% has encouraged hesitant months of job declines this year, with the first drop in service-sector sellers to return to the market, but high prices and limited supply employment occurring last month. Meanwhile, California's household keep affordability out of reach for many. Flattening mortgage rates and payroll surveys continue to diverge: Payroll employment has are anticipated in 2025, which will likely spur additional demand risen 1.8% over the past two years, while household employment has and provide stability in the market. With the combined effects of remained nearly flat. A downward correction in payroll numbers may stable mortgage rates and increased market activity, home prices be on the horizon in March, when the annual revision takes place. are expected to continue rising, particularly in the latter half of the year, as demand intensifies, and inventory remains tight.
Proposition 172
Total fiscal year 2023-24 Proposition 172 (P-172) statewide revenues ended about 1% lower than the prior year. The December projection anticipates a similar result for the 2024-25 fiscal period with a projected 1.1% decrease. Fiscal year 2025-26 reflects anticipated growth of 2.7%. Current county projections include updated pro-rata factors published by the SCO in September 2024. As the calendar year Bradley-Burns results fluctuate due to taxpayer modifications, statewide audits, economic impacts, etc. - Proposition 172 pro-rata factors and resultant P-172 revenues will vary for many counties.
HdL Companies California Forecast
December 2024
Hdl® Companies
Delivering Insight, Revenue, and Efficiency
to Local Government
HdL Companies
888.861.0220 | [email protected] | hdlcompanies.com California's allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client's specific demographics, tax base and regional trends.
Beacon Economics LLC
310.571.3399 | BeaconEcon.com
Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdL's quarterly consensus updates. The collaboration and sharing of information between Beacon and HdL helps both companies enhance the accuracy of the work that they perform for their respective clients.