CITY OF FAIRFIELD
SPECIAL MEETING
CITY COUNCIL
AGENDA
Monday, May 12, 2025, 5:00 p.m.
Harry T. Price Memorial Council Chamber
1000 Webster Street, Fairfield, CA 94533 or Via Zoom
Vice Mayor Pam Bertani will be attending remotely via Zoom. Teleconference Location (Gov't Code 59453 (b)) 2413 Sanctuary Drive, Fairfield, CA 94534. **Open to the Public**
NOTICE TO PUBLIC
The City of Fairfield is committed to providing meeting facilities that are accessible to persons with disabilities and/or have language barriers. To request meeting materials in alternative formats, or to request a sign language interpreter, realtime captioning, or other accommodation, please contact the City Clerk's Office, at least 24 hours in advance of the meeting at (707) 428-7400.
For individuals with hearing or speaking limitations, dial 711 or (800) 735-2922 (English). For Spanish, Tagalog or other language, please dial (800) 855-3000 and provide the communication assistant with the following City telephone number: (707) 399-4010.
DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:
Pursuant to Government Code 84308, City Council Members are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the City Council Member received more than $500 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City's decision on the agenda item in the 12 months prior to the date the item is on the agenda. Members of the City Council who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $500 to a City Council Member in the 12 months prior to the date the item is on the agenda are required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration.
REMOTE APPEARANCE
Members of the public can observe the meeting on Roku City of Fairfield, Xfinity Channel 26, AT&T U-Verse Channel 99, and web streamed live at www.youtube.com/FFCATV. The public may join the meeting via Zoom at: https://fairfieldca.zoom.us/j/89060213840?pwd=UUd0WlpEMStLemcxbld4dzVMK3Z5dz09 or via phone (408) 638-0968, Webinar ID: 890 6021 3840, Passcode: 7074287400 Pages
A. CALL TO ORDER 5:00 PM
B. ROLL CALL
Councilmember Doug Carr
Councilmember Doriss Panduro
Councilmember Manveer Sandhu
Councilmember Scott Tonnesen
Councilmember K. Patrice Williams
Vice Mayor Pam Bertani
Mayor Catherine "Cat" Moy
C. PLEDGE OF ALLEGIANCE
D. PUBLIC COMMENTS
Persons wishing to address the City Council on subjects not on the agenda but within the jurisdiction of the council may do so at this time. The council cannot discuss or take action on matters not on the agenda for this meeting, but councilmembers may briefly respond to statements made or questions raised by the public, ask for clarification from staff, refer the matter to staff, request staff to report back To the council at a subsequent meeting, or place the matter on a future agenda. To speak on an agenda item please use the “raise your hand” feature or press *9 on your phone. Speakers are limited to three minutes per item.
E. PRESENTATIONS
E.1 Inclusionary Housing 3
Contact: LaTanna Jones, (707) 428-7647
E.2 Budget Update 21
Contact: John Furtado, (707) 428-7629
F. ADJOURN
Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the City of Fairfield to all or a majority of the Fairfield City Council less than 72 hours prior to that meeting are available for public inspection at City Hall, in the 4th floor lobby, 1000 Webster Street, Fairfield, California during normal business hours.
PUBLIC NOTIFICATION
I, Esther Beavers, Deputy City Clerk, do hereby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Fairfield City Council, at the time and in the manner prescribed by law and that this agenda was posted at City Hall, 1000 Webster Street, Fairfield, California on Thursday, May 8, 2025.
F.1 Inclusionary Housing
Nexus Study
Study Session
1Page 3 of 62
What is Inclusionary Housing
Encourages or requires housing developers to set aside affordable units within new development projects
Local land- use Controls
Lower-income families in high resource areas
Produce revenue for future affordable housing development 2Page 4 of 62
Inclusionary Housing Policy
3Page 5 of 62
Developer Outreach Efforts
Developer interviews
Hybrid developer workshop 1/21/2025
Accepted developer feedback via email
Commercial and Residential Developer Outreach via email and through the website 1 4Page 6 of 62
Nexus Study
Conducted study included:
Discussions with other jurisdictions that have Inclusionary housing policy Analysis of comparable jurisdiction policies and associated fees including:
• Benicia
• Santa Rosa
• Sacramento
• Elk Grove
• Woodland
5Page 7 of 62
Peer Jurisdictions Inclusionary Policies
Jurisdiction Homeownership
Inclusionary Policy
Homeownership
in- lieu fee or impact
fee
Multi-Family
Inclusionary
Policy
Multi-Family
in-lieu fee or impact
fee
Minimum Unit
applicability
City of
Benicia
5% very Low and 5%
low (add’l 5% Low
for projects of 100+
units)
No Fee 5% very Low
and 5% low
Inclusionary Preferred 10
City of Santa
Rosa
10% Moderate $5/ sq ft(0-909 sq ft);
$10/ sq ft (910+ sq ft)
5% Very Low
or 8% Low
$5/ sq ft(0-909 sq ft);
$10/ sq ft (910+ sq ft)
7 City of
Sacramento
N/A $3.54/sq ft N/A $3.54/sq ft 2
City of Elk
Grove
N/A $6,289 per unit N/A $3,773 per unit 1
City of
Woodland
10% Low Calculated per
project
10% Low Calculated per project 20
6Page 8 of 62
Policy Decisions
1. Number of Units to trigger inclusionary Housing Policy for Multi-family and homeownership development
2. What level of affordability is triggered by the Inclusionary Housing Policy
3. In-Lieu Fee policy and fees
4. Objective Alternatives
5. Commercial Linkage fee and policy
6. Fractional Units
7Page 9 of 62
City of Fairfield Inclusionary Policy
Jurisdiction Homeownership
Inclusionary Policy
Homeownership
in- lieu fee or impact
fee
Multi-Family
Inclusionary Policy
Multi-Family
in-lieu fee or impact
fee
Minimum Unit
applicability
City of Fairfield 5% Moderate
income
$2.72 per Sq.ft
($6,528 per unit)
2.5% very Low and
2.5% low
$5.17 per Sq.ft.
($6,143 per unit)
10 1 8
Objective Alternative
In Lieu Fee Land Dedication
9Page 11 of 62
10Page 12 of 62
Residential Developer Feasibility – Single Family
11 • Per Single Family Unit Cost Increase from $6,500 - $13,100 • Developer Profit Reduction by between 1.1% and 2.2% * * Developer Profit (Return on Investment, unlevered = Net Revenues (Total Revenues – Total Costs) divided by Total Costs
New Development Type
Fee per Square Foot $0 $2.72 $5.44
Single Family (100 unit project, 12.5 acres)
Fee per Unit $0 $6,528 $13,056
Fee as a % of Total Development Costs, Excluding Land 0% 1.2% 2% Developer Profit (Holding All Else Constant) 15.9% 14.8% 13.7% Home Price (Holding All Else Constant) $780,000 $787,800 $795,000 Land Value (Holding All Else Constant) $12.5 million $11.8 million $11.2 million Proposed
Fee
Maximum
FeeNo Fee
Residential Developer Feasibility – Multifamily
12 • Per Multi Family Unit Cost Increase from $6,150 - $12,300 • Yield on Cost Reduction by between 0.08% and 0.16% *
* Yield on Cost (unlevered) = Net Operating Income (Annual Revenues – Annual Operating Costs) divided by Total (Development) Costs
New Development Type
Fee per Square Foot $0 $5.17 $10.35
Multifamily (100 unit project, 3.3 acres)
Fee per Unit $0 $6,143 $12,285
Fee as a % of Total Development Costs, Excluding Land 0% 1.4% 2.8% Yield (Holding All Else Constant) 5.87% 5.79% 5.71%
Rent PSF (Holding All Else Constant) $3.20 $3.23 $3.27
Land Value (Holding All Else Constant) $3.3 million $2.7 million $2.1 million Proposed
Fee
Maximum
FeeNo Fee
Documents
1 13
Policy will be documented through an Affordable
Housing Ordinance
• High-level, providing inclusionary requirements for applicants and flexibility for City
Resolutions
• For specific metrics and fees (e.g., commercial linkage fees) • Council may adopt and adjust more easily/quickly
Other Terms of the Inclusionary Housing
Requirements
1 14
Triggers
• Policy will apply to any residential construction or development that includes 10 or more units
Exempt from policy
• ADUs
• Projects damaged by natural disaster
• Development agreements meeting or exceeding inclusionary policy Admin Fee
• City will charge an Admin fee for processing Inclusionary applications
Other Terms continued
1 15
Affordable Housing Plan
• Required with project application
• Details project compliance with ordinance, whether via units, in-lieu fees, or land dedication Regulatory Agreement & Deed Restriction
• Required when project is approved with affordable units • City may record as deed restriction against title, or City may record separate deed restriction • Ordinance provides flexibility in how City may require documents (i.e., together or separate) Housing Trust Fund
• All fees collected must be used for affordable housing. Fees will be deposited into the Housing Trust Fund
Commercial Linkage Fees
16 The maximum fee is derived by combining estimates of the average square feet of building space per worker with wages by industry and occupation. The number of worker-households requiring affordable housing support is then translated into a total affordability gap and Maximum Fee/ SF. The recommendation is for a fee level well below the maximum allowable, with no fee on Office/Medical development.
Land Use Recommended
Fee Per Sq Ft.
Maximum Fee
Per Sq.Ft.
Commercial/Retail/ Service $1.00 $104.34
Office/Medical $0.00 $22.34
Industrial: Warehouse and Distribution $1.00 $30.72
Industrial: Manufacturing $1.00 $17.18
Lodging $1.00 $26.18
Potential Annual Revenues
Single Family Units Multi-Family Units Commercial Linkage Fees Annual Revenue $2.1 Million $1.8 Million $276,600
20-Year Revenue $41.3 Million $36.9 Million $5.5 Million Number of Units / Sq.Ft. 6,326 6,011 5.97 Million Sq Ft. 1 17Page 19 of 62
18Page 20 of 62
F.2 Budget Update
May 12, 2025
City Council
1Page 21 of 62
Overview
2 Timeline
Proposed Changes
Department Additional Requests
General Fund Outlook
Other Funds
Timeline
2022
$20M Structural Deficit
identified
2023
May
• Council Study Session
- Hybrid Approach
- Departments hold the line
- New revenues discussed
June
• FY24 & FY25 Budget Adopted
- Midcycle to have updates
August
• All Hands Budget Meetings for Staff
Sept-Dec
• CM hosted Office Ideas
3Page 23 of 62
Timeline
4 2024
March/April
• Council Study Sessions
- CM Directed 5% reduction, achieved
3.77%
- Revenue Measures Identified
TOT – Bus Lic – Fee Studies
June
• FY25 Budget Adopted
November
• TOT & Business License Pass
2025
January
• Council Retreat – Show Austerity
March
• Austerity measures presented
April
• Reduced austerity and department needs
May
• Study Session
June
• Budget Adoption
Austerity Options Presented
5 Parks and Rec
Signature
Events
Downtown
Theatre
Concerts in the
Park
Pool Capacity
Activity Guide
Police
PAL
Sworn Officer
Positions
Domestic
Violence
Community
Engagement
Fire
Brown Outs
CMO
Winter Shelter
Homeless
Services
Council
Digital Annual
Report
Community
Development
Economic
Development
Planning
Admin
Employee
Engagement
Vendor/Payroll
IT Reductions
Public Works
Landscaping
Services
Neighborhood
Park Closures
Community
Park Closures
Fleet Reduction
Impact of Reductions/Requests
FY26 FY27
One-Time
Reductions ($812,783) ($448,776)
Department Requests 537,000
Total One-Time ($275,783) ($448,776)
Ongoing
Reductions ($407,440) ($467,440)
Department Requests 1,512,347 1,524,700
Total Ongoing $1,104,907 $1,057,260
6Page 26 of 62
Biennial Budget – Preliminary Summary
In $ Millions
7 Description
Projected
FY25
Proposed
FY26
Proposed
FY27
FY26
vs
FY25
FY27 vs
FY26 % FY26 % FY27
Revenues 139.42 142.16 145.94 2.74 3.78 2.0% 2.7%
Expenses 149.55 153.30 157.02 3.53 3.96 2.4% 2.6%
Net Surplus/(Deficit) (10.13) (11.14) (11.08) (1.01) 0.06
Proposed Reductions – Decision Point 1
8 Ongoing
Winter Shelter utilize IGS Funds* $150,000 $150,000
Circle Up Education 88,000 88,000
Eliminate printed annual report 32,000 32,000
Downtown Theatre 117,440 177,440
Reduce Activity Guide 20,000 20,000
$407,440 $467,440
One-Time FY26 FY27
IT – Reductions $772,783 $448,776
Concerts in the Park 40,000
$812,783 $448,776
Department Requests for
Budget Increases
9Page 29 of 62
Departments Request Summary – Decision Point 2
FY26
One-Time
FY27
One-Time
FY26
Ongoing
FY27
Ongoing
CMO $250,000 $882,687 $882,687
Parks and Recreation 15,000 15,000
Public Works 348,922 395,942
Police 150,000 170,295 75,707
Fire 137,000 95,443 155,364
Total Ongoing $537,000 $1,512,347 $1,524,700
10Page 30 of 62
City Manager - $1,132,687 | $882,687
11 Description Comments FY26 FY27
Animal
Services
Cost of animal control and animal shelter $857,437 $857,437 LAFCO Impact of continued growth/annexations 25,250 25,250 $882,687 $882,687
Description Comments FY26 FY27
Ballot Initiative Estimated cost for polling, county costs $250,000 Ongoing
One-Time
Parks and Recreation – $15,000| $15,000
12 Description Comments FY26 FY27
Part-Time
Classification
Alignment
Align multiple part-time job classifications with
similar job requirements
$15,000 $15,000
Ongoing
Public Works – $348,922| $395,942
13 Description Comments FY26 FY27
Construction Management
Software
Efficiency for administration and inspection for
infrastructure projects. Helps with grant compliance.
$30,000 $20,000
Development Review Program Legal and outside consulting 52,360 69,380 2 – Equip Mech I to II Staffing needs 14,712 14,712
Storm Drains Regulatory compliance, pesticides 63,000 63,000 Landscaping Current service contracts have built in 3% clause 97,807 97,807 New Restrooms Alan Witt Y1, Lee Bell Y2 – cost to service new restrooms
45,000 85,000
New Landscaping CA 12 route and West Texas (I-80 to Beck) 45,500 45,500 VRF – Safety Upfit Additional Safety Lighting 543 543
$348,922 $395,942
Ongoing
Police Department - $320,295 | $75,707
14 Description Comments FY26 FY27
Vehicle Timing 29 PIU’s due for replacement in FY27, bring forward 14 PIU’s to FY26 64,778 9,680 Vehicle Needs Currently 3 totaled, not due to be replaced, bring forward the replacement
70,517 31,027
SRO – CSO
Staffing
To meet current contract with FSSD requires as needed labor. Without which we cannot provide an SRO at the Public Safety Academy 35,000 35,000
$170,295 $75,707
Description Comments FY26 FY27
Helmets/Equipment Replacement needed, officer safety, safety regulation compliance
$150,000
Ongoing
One-time
Fire Department - $232,443 | $95,443
15 Description FY26 FY27
Ballistic Equipment Replacement $83,000
Electric Vehicle Extrication & Firefighting Training 10,000 SWAT/TEMS – Replacement Member Training 44,000
$137,000
One-time
Fire Department - $232,443 | $155,364
16 Description FY26 FY27
Adding UTV to VRF $655 $655
Cancer Prevention & OSHA Requirement Initiatives 7,760 7,760 Critical Incident Stress Management (CISM) Team 10,500 10,500 Prevention Bureau 7,000 7,000
Suppression Equipment & Supply Needs 8,500 8,500
Promotional Testing – Contract Cost Increase 17,000 17,000 Training Tower Additional Revenue (34,000) (34,000)
Training Tower Additional Expense 25,000 25,000
Station 36/39 New Operating Costs - 59,921
Utilities/Recurring Fire Station Contract Cost 53,028 53,028 $95,443 $155,364
Ongoing
Non-General Fund Personnel Requests – Decision Point 3
17 Fund Description Comments Cost
CIP 2 - Associate Civil Engineers –
Limited Term
Needed to temporarily augment staff
with number of vertical construction
projects
$435,394
Water Water Distribution Operator
IIIA
Alleviate absences, address deferred
work
165,450
IT IT Analyst Senior Convert limited term to full time for ongoing EnerGov functionality and
support
197,095
$797,939
General Fund - Mid-Year 2025 Adjustments – Decision Point 4 18 Description Detail Amount
Animal Control HAS Contract increases $357,103
Animal Sheltering Solano County sheltering costs 519,000 Fire Overtime 1,345,732
Strike Team Reimbursement (869,833)
Total $1,352,002
19 Key Assumptions
Internal CalPERS HdL Cone HdL Actuaries
COLA’s
• Budget: 0%
• 2026
• 2027
• Forecast:
• 2028 - 0%
• 2029+ - 2%
1%: $780k
($580k-GF)
UAL
• CalPERS
forecast
model
• Assumes
6.8% Return
• CalPERS in
ALM Cycle
1%: $650k
Property Tax
• 4.2% - 4.5%
Long Term
Growth
Sales Tax
• 3% Long
Term
Growth
Other
• General
Liability
• Workers’
Comp
CalPERS Unfunded Actuarial Liability Payments
In Millions
20 8
10 12 13 14
16 17
20 23
25 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
General Liability
In Millions
*Preliminary forecast 21
0.52 0.64
1.28 1.59 1.93
2.70 3.45
0.97 0.54
3.59 0.97
2.94 1.00
1.50 1.49
1.18 4.87
2.56 4.87
3.70 4.95
2020 2021 2022 2023 2024 2025* 2026*
Insurance Claims
Insurance Premiums
Workers Compensation
*Preliminary forecast
FY # of claims Total Days Lost Time
15-16 64 241
16-17 74 792
17-18 72 243
18-19 88 499
19-20 97 959
20-21 156 743
21-22 234 1,799
22-23 158 810
23-24 107 830
24-25 YTD 76 1,277
Totals 1,126 8,193
22Page 42 of 62
Biennial Budget – Preliminary Revenues
In $ Millions
23 *Excludes one-time balancing measures
Revenue
FY25
Projected
FY26
Proposed
FY27
Proposed
FY26 vs
FY25
FY27 vs
FY26 % FY26 % FY27
Property Taxes 44.45 45.67 47.46 1.21 1.79 2.7% 3.9%
Sales Taxes 55.46 56.15 57.82 0.69 1.67 1.2% 3.0%
Utility and Franchise Taxes 13.04 13.36 13.69 0.32 0.33 2.4% 2.4% Cannabis Tax 0.83 0.85 0.87 0.02 0.02 2.0% 2.0%
Other Taxes & Intergov 8.12 8.36 8.54 0.24 0.18 3.0% 2.1% Licenses, Charges & Other 14.38 13.39 13.48 (0.98) 0.09 -6.8% 0.6% Investment Income* 0.47 1.18 0.83 0.70 (0.35) 149.0% -29.6% Transfers In-Other Funds 2.66 3.20 3.26 0.54 0.06 20.4% 2.0% Total Revenues/Transfers In 139.42 142.16 145.94 2.74 3.78 2.0% 2.7%
Biennial Budget – Expenses
In $ Millions
24 Expenses
FY25
Projected FY26 FY27
FY26 vs
FY25
FY27 vs
FY26 % FY26 % FY27
Staff Costs 105.57 106.76 110.33 1.18 3.57 1.1% 3.3%
Discretionary 25.90 25.72 25.51 (0.18) (0.21) -0.7% -0.8% ISF - IT 12.53 11.70 12.06 (0.83) 0.36 -6.6% 3.1%
ISF - Vehicle Replacement 3.74 4.23 4.20 0.49 (0.03) 13.0% -0.6% ISF - Vehicle Maintenance 3.54 3.81 3.91 0.28 0.10 7.8% 2.5% ISF - Liability 4.29 6.08 6.61 1.79 0.53 41.8% 8.7%
ISF - Cogen, Building, Svc 1.52 2.06 1.67 0.54 (0.39) 35.8% -19.2% Transfers Out/Credits (7.55) (7.06) (7.27) 0.48 (0.20) -6.4% 2.9% Total Expenses/Transfers Out 149.55 153.30 157.02 3.75 3.72 2.5% 2.4% *Excludes one-time balancing measuresPage 44 of 62
Biennial Budget – Preliminary Summary
In $ Millions
25 Description
Projected
FY25
Proposed
FY26
Proposed
FY27
FY26
vs
FY25
FY27 vs
FY26 % FY26 % FY27
Revenues 139.42 142.16 145.94 2.74 3.78 2.0% 2.7%
Expenses 149.55 153.30 157.02 3.53 3.96 2.4% 2.6%
Net Surplus/(Deficit) (10.13) (11.14) (11.08) (1.01) 0.06
Revised 10 Year Forecast
26 (50)
-
50 100
150
200
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33
Millions
Revenue Total OneTime Expenses Fund BalancePage 46 of 62 Measure P Impact
27 135
145
155
165
175
185
195
FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34
Millions
Expenses Revenue
28 Recession Impacts – Starting FY28
140,000,000
150,000,000
160,000,000
170,000,000
180,000,000
190,000,000
200,000,000
FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
Recession - 10% Impact Sales Tax/CalPERS - FY28
Revenue Expenses 10% - Sales Tax 10% CalPERSPage 48 of 62 One-Time Funding Available – Decision Point 5
In $ Millions
29 Description
Revised
Identified FY24 FY25 Available
Long Term Disability $1.70 - - $1.70
Pension Obligation Bonds 1.40 0.65 - 0.75
Workers’ Compensation 1.44 1.00 0.44 -
Budget Gain/Loss FMV 6.00 3.00 3.00 -
IGS Broadband-Cybersecurity 5.00 2.50 2.50 -
IGS Uncommitted-Fund Deficit 3.11 - - 3.11
IGS Loan Repayments RDA 9.39 - 4.20 5.19
Total $28.04 $7.15 $10.14 $10.75
Biennial Budget – Preliminary Summary
$ Millions
30 Description
Projected
FY25
Proposed
FY26
Proposed
FY27
FY26
vs
FY25
FY27 vs
FY26 % FY26 % FY27
Revenues 139.42 142.16 145.94 2.74 3.78 2.0% 2.7%
Expenses 149.55 153.30 157.02 3.37 4.43 2.3% 2.9%
Net Surplus/(Deficit) (10.13) (11.14) (11.08) (1.01) 0.06 Balancing Measures 10.14 10.75 -
Adjusted Surplus/(Deficit) 0.01 (0.39) (11.08)
(50)
-
50 100
150
200
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33
Millions
Revenue Total OneTime Expenses Fund Balance
Revised 10 Year Forecast w/ One-Time
31Page 51 of 62
Intragovernmental Services Fund
32 Land 2,104,129
Loans 3,344,774
Fund Advances 797,600
Curr Liabilities (356,967)
Total (6/30/2024 ACFR Fund Balance) 37,438,804
Category 24 Budget Balancing FY24 Ending
FY25/FY26 Budget
Balancing Planned Use Designated Available
Broadband (2,500,000) 7,115,502 (2,500,000) (2,149,672) 2,465,830 Downtown Streetscape 350,000 (350,000) -
ED 8,817,856 (6,828,907) 1,988,949
Homeless Navigation 1,424,544 (300,000) 1,124,544
LLMDs (536,000) 536,000 -
Markley Lane 1,800,000 (1,800,000) -
N Texas St proj 600,000 (600,000) -
PAL Center 1,300,000 (500,000) 800,000
PERS - - -
Soccer Complex 350,000 (350,000) -
Unrestricted-RDA 6,994,223 (9,394,223) 2,400,000 -
Unrestricted 3,333,143 (3,107,261) (225,882) -
(2,500,000) 31,549,268 (15,001,484) (10,168,461) 6,379,323
Direction - Balance Budget – Decision Point 6
33 General Fund
Reserve
• Reduces reserve
from 32% to
22%
Repurpose IGS
Committed Funds
• Preserves
$6.4M of GF
reserves
• Reserve from
32% to 26%
IGS Planned Use
Funds
• $6M-$10M
• Identify which
projects to cut
Current Budget Policy
34 20% Target
7% Minimum
Below 7% Council to direct reductions
45 days not achieved 7%, City Manager to
direct uniform % decrease for departments
• Varies
• None
• Rely on General
Fund, volatile
impact
• 25%-100% reserve
target
Other Agencies
• Set a min/max target
• 25%-50% of total
liability
• Cash on hand for
eligible retirements
• Cash on hand for
routine cash outs and
turnover
Consideration
• 32% Funded
• Cash $7.2M
• Eligible Retirements:
$6.1M
• Historical cash outs
• 2022-$4.6M
• 2023-$4.4M
• 2024-$4.2M
FY24 Ending
Compensated Absence Funding – Decision Point 7
Purpose: Account for the
total outstanding liability of
all accrued employee annual
leave that is eligible to be
paid at the employees'
separation or through City
cash out program. Most leave
balances the City provides
have cash value.
35Page 55 of 62
36 Other Funds - Golf
FY 24-25 FY 25-26 FY 26-27
Operating Revenues $10,859,069 $11,192,668 $11,685,892
Operating Expenses 9,880,379 10,532,977 10,875,880
Net Operating 978,690 659,691 810,012
Rancho Irrigation 500,000 -
PV Irrigation 300,000 150,000
Other Capital Requests 267,000 1,175,000
Total Capital 300,000 917,000 1,175,000
Available Funds $446,116 $181,591 $58,737 Page 56 of 62 37 Other Funds - Golf
104 101 97 102 102
95 142
133
122 128 124 122 125
-
20 40
60 80
100
120
140
160
Golf Rounds Played
Thousands
Deferred Capital Needs Estimate
Equipment Replacement (3yrs) $800,000
Course Deferred Maintenance 600,000
Building Deferred Maintenance 1,500,000
Kitchen TBD
Top Tracer - PV 250,000
Total $3,150,000
38 Other Funds – Golf – Historical Support
In $ Millions
Loans to Golf Advance Interest* Total
General Fund Portion $11.8 $8.1 $19.9
Bedroom Tax Portion 3.8 3.9 7.7
Total $15.6 $12.0 $27. 6
Additional General Fund
Transfers to Golf (1998-2020)
• $12.2
Admission Tax Revenue into
General Fund (2000-2024)
• $13.7
Annual Admission Tax
Revenue
• $0.55-$0.60
* 9% Interest
Other Funds – Water
In $ Millions
39 • 4%2018
• 4%2019
• 4%2020
• 4%2021
• 0%2022
• 0%2023
• 0%2024
• 0%2025
Details FY23
Actuals
FY24
Actuals
FY25
Projected
FY26
Proposed
FY27
Proposed
Operating Revenues 36.8 35.9 36.2 37.4 39.3
Operating Expenses 35.4 38.0 41.1 44.6 44.7
Net Operating 1.4 (2.1) (4.9) (7.2) (5.4)
Other Funds – Water Rate Tentative Schedule
40 May
• Adopt
PUMP
• Finalize
rate
options
June
• Begin
public
outreach
events
• Council
initiates
Prop 218
Process
July
• Host
public
outreach
events
• Prop 218
notices
mailed
August
• Host
public
outreach
events
• Council
Workshop
(optional)
Nov
• Close
public
hearing
• Adopt new
rates
• Continue
public
outreach
Jan
• New rates
go into
effect
Other Funds - Housing
41 • Depleted in FY26
Heavily reliant on one-time funds
Inclusionary Housing Policy
• $2.5M-$3.0M
Non-Grant Funded Operational Costs
42 Questions/Additional Direction