CITY OF CRESCENT CITY
Mayor Blake Inscore Mayor Pro Tem Ray Altmar
Council Member Isaiah Wright Council Member Jason Greenougl Council Member Kelly Schellong
MINUTES
BUDGET WORKSHOP CONTINUATION
WASTEWATER TREATMENT FACILITY
210 BATTERY STREET
CRESCENT CITY, CA 95531
THURSDAY MAY 23, 2024 5:30 P.M.
OPEN SESSION
Call to order Mayor Inscore called the meeting to order at 5:56 p.m. due to technical difficulties.
Roll call Council Members present: Council Member Kelly Schellong, Mayor Pro Tem Ray Altman, and Mayor Blake Inscore; Council Member Isaiah Wright was on his way to the meeting as roll call was being taken Council Member absent: Council Member Jason Greenough
Staff members present: City Manager Eric Wier, City Attorney Martha Rice, City Clerk/Administrative Analyst Robin Altman, Finance Director Linda Leaver, Economic Development and Recreation Director Ashley Taylor, Public Works Director Dave Yeager, IT Administrator Fritz Ludemann, and Police Chief Richard Griffin
Pledge of Allegiance led by Mayor Inscore
Council Member Wright arrived at the meeting just after roll call 5:58 p.m.
CONTINUING BUSINESS
1. FY 2024/2025 Proposed Budget of the City of Crescent City • Recommendation: Receive a continuation of the budget workshop presentation from City Manager and Finance Director,; provide direction regarding FY 2024-25 budget; take action as necessary and appropriate.
City Manager Wier went over the budget for the RV Park. What is included in the RV Park budget:
internet and Dish service, summer security contract, roll over for new signs, marketing, picnic tables, fire pits, merchandise for sale, replace one washer/dryer. He explained all of the items that were not included in this year's budget. Council Member Schellong asked that since the occupancy has increased, will the City then raise the rates. Mayor Inscore stated that the City should not be satisfied with the rates now, it should be revisited soon, but not every couple of years. Is in support of the upgrade to the internet and tv service.
Director Leaver went over the Sewer Fund in detail; Council Member Schellong asked if the WWTP has the capacity for the additional units; City Manager Wier stated that with permits and 1 | Page
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technology it will be fine; Jacobs Project Manager Austin Nova stated his only concern is the amount of water that inundates the WWTP, but is not concerned with the connections aspect of it. City Manager Wier explained all of the pieces of equipment on the WWTP and the need for them to be replaced or repaired and the vital service they perform to keep the facility working.
Director Leaver reported on the budget for the Water Fund. She said in this budget, there is no water rate increase, however there is a water rate study underway. City Manager Wier went over the Water Fund Capital Improvement Projects (CIP); Mayor Inscore asked if this is going to be done during the street projects (water main replacements); City Manager Wier stated that yes, it will be done at the same time. Director Leaver went over the Internal Service Funds (ISF), Information Technology fund, Buildings, and Equipment and outlined what would be budgeted for this fiscal year.
Mayor Inscore called a 5-minute recess at 7:26 p.m.; the meeting was called back in session at 7:35 p.m.
Director Leaver explained the grant process and receiving the funding. She further reported that there will be a cash flow concern for next year and that will be brought back before the Council for in depth discussion. Director Leaver went over the estimated cash flow; the level is determined by the reimbursement and how soon it is received. Council Member Schellong asked if it is being requested to borrow the money from the General Fund (GF) that will get us below the 25% reserve; Director Leaver stated that if we are ok with going under the 25% reserve, but not under $1million, we would not have to borrow the money. City Manager Wier stated that being under the reserve would only be for one month. Director Leaver stated that if we are not comfortable with it, then we would need to borrow the money at a high interest rate.
Council Member Schellong said she would like to see a plan in place to prepare to save jobs should Measure S be repealed. Director Leaver stated that $600k that we are discussing - the more we add, the more we will decrease our fund revenue.
Mayor Inscore said Golden State Finance Authority has a grant program that allows you to get what you need up to $1 million, therefore he recommends seeking those funds as it would give us flexibility instead of borrowing a specific amount of money. Director Leaver stated staff has looked into it, they can loan up to $1million with 5% interest; the issue they will run into, is that they only have $1million in total, so if someone else wants it, there will not be funds available for us. Mayor Pro Tem Altman stated that if we only have $600k we should not be spending any money; City should be as frugal as possible. Council Member Wright stated that his understanding is to borrow from the GF, borrow from the Water/Sewer fund or borrow money from a bank. Council Member Schellong stated that if we spend the $600k we will be under the $1million. Mayor Pro Tem Altman stated that it is of his opinion that we should hold off on spending money for a couple of months as budget amendments are done all of the time.
Council Member Schellong stated it was her opinion that funding the Chamber could wait until October so we could see the results of the TOT audit; Mayor Pro Tem Altman in agreement with Council Member Schellong, Mayor Inscore stated he did not agree as he was in support of the Chamber's marketing effort and that the TOT is proposed to be $2 million. Mayor Pro Tem Altmai and Council Member Schellong agreed that the Chamber funding was not an immediate expense, but that it had value.
City Manager Wier stated that regarding equipment - he knows Director Yeager would prioritize the Public Works van and the tractor/mower. Additionally, the priorities of Public Works (PW) will also be the proposed Corp Yard improvements.
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The Council made individual recommendations for the budget:
Council Member Schellong supported funding the following: airport contribution, downtown bathroom, loft of the Corp Yard, all equipment for PW, business license, Cultural Center, part time PW Office Tech, PERS payment - Director Leaver suggested to wait for the budget to actual to pay the PERS payment as we can pay that at any time.
Mayor Pro Tem Altman - does not want to spend any money right now, would like to wait until the City recovers from dipping down into the reserve. He does support funding the airport.
Mayor Inscore - agrees with being cautious on spending; suggested taking out the line of credit and we don't dip down into the reserves. Would like to see security cameras installed at the Cultural Center and the locker room at the Corp Yard be updated.
Council Member Wright - IT security camera project, PW equipment purchases (especially the mower/tractor), online business licenses, security system for Cultural Center, part-time PW Office Tech. Does not want to go below the 25% reserve and is in favor of a bridge loan. Wants to put money aside for the airport, not $80k all at once. Council Member Schellong was in agreement about the airport funding Council Member Wright suggested. Council Member Wright Is in favor of increasing the amount given to the Chamber. Council Schellong is in favor of funding the Chamber as well but would like to see a detailed plan on how the additional funding would be utilized.
The Council was in unanimous consensus for additional funding for the Chamber in the amount of $30k with a plan to come back to the Council on how it was going to be spent. Council Member Wright reminded the Council that Vosburg said it would be a 2-year commitment.
The Council directed the following items be added to the FY 24-25 budget: downtown bathroom, IT security camera project, a van for Public Works, tractor/mower for Public Works, Corp Yard improvements, additional funding for the Chamber of Commerce and the CIP project allocation.
The Council was in unanimous consensus for staff to seek a bridge loan, to discuss all other equipment purchases during the mid-year budget, to discuss the Public Works Office Technician position and building and fence staining at mid-year.
ADJOURNMENT
There being no further business to come before the Council, Mayor Inscore adjourned the meeting at 10:00 p.m. to the regular meeting of the City Council of the City of Crescent City scheduled for Monday, June 3, 2024 at 6:00 p.m. at the Flynn Center, Board Chambers 981 H Street, Crescent City, CA 95531.
ATTEST:
Biltma
Robin Altman
City Clerk/Administrative Analyst
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