City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-23 List of Services & Programs FY 2025-2026 Funded with Tax Proceeds from the Measure K TUT
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Prioritized List of Services and Programs to be Funded with Tax Proceeds Received from the Measure ‘K’ Transaction and Use Tax, During Fiscal Year 2025-2026, Including Funding Allocations.
BACKGROUND
In November 2014, 65 percent (65%) of Gonzales voters approved Measure ‘K’, enacting a one-half percent (0.5%) transactions and use tax. Included with the passage of the Measure ‘K’ Transaction and Use Tax was the formation of an Oversight Committee to monitor and provide advisory recommendations to the City Council regarding the use of the tax revenues. The formation of the Oversight Committee was instrumental to the passage of Measure ‘K’ and was necessary to maintain the public transparency needed for the use of these funds.
REVIEW & ANALYSIS
The Measure K Oversight Committee met on June 3rd, 2025, to review and discuss the list of potential projects/programs to fund with the Measure ‘K’ tax proceeds.
Exhibit ‘A’ is a list of proposed programs and services they are recommending to be funded with the Measure ‘K’ Transaction and Use Tax (TUT) during Fiscal Year 2025-2026.
Revenues from Measure K are projected to be about $800,000 in Fiscal Year 2025-2026.
AGENDA
ITEM
13 Recommended FY 2025-2026 Funding Priorities
Exhibit ‘A’ of the Resolution is a matrix that details the recommended projects and programs for FY 2025-2026. The programs are broken down as follows:
• Group 1 are “High Priority” projects that are recommended for continued funding. • Group 1A are Additional Project/Program recommended for FY 2025-2026.
Recommended for FY 2025-2026 - Group 1
1. Fund the debt service for the renovation of the Community Pool. ($130,000) On March 7, 2016, the City Council approved a financing plan for the Community Pool Improvement Project. The approved financing plan includes private placement financing of approximately $1.5 million for a period of fifteen (15) years at an interest rate of 2.88%. The annual debt service payment is slightly less than $130,000, which staff recommends be funded through the proceeds received from the Transaction and Use Tax. This obligation will carry-forward to cover the annual debt service until the debt service is paid off or as long as the tax is in place.
2. Fund Youth Services/Development Activities ($30,000), including: (a) Youth Services/ Development Staffing; (b) Gonzales Youth 21st Century Success Initiative (GY21CSI), and the Gonzales Youth Council, etc. The City Council continues to consider the funding of services for youth programs and development to be of a high priority.
After School ‘Kid-Power’ Program ($90,000). In 2017, the City of Gonzales, created Kid Power to complement the Gonzales Unified School District after-school program known as A.S.E.S (After School Education and Safety Program). The ‘Kid-Power’ program now stands independent of A.S.E.S and has become a staple in the community. The program provides recreational enrichment and homework support, and other educational assistance and programming. In line with the City’s youth initiative, the funding has allowed the City to provide additional resources and programs for youth.
Gonzales Day Camp ($75,000): The City’s Recreation Department’s Summer Day Camp has been a community favorite since its inception in 2016. As proposed, the day camp will continue to provide the means for parents, and families to have reliable day care for their children for the entire 8 weeks that school is not in-session during the summer months. As envisioned, the program will have a 1 to 12 adult-to-child ratio for each group of children. Children would be grouped by ages to keep activities age appropriate for all children.
Summer Day Camp will include daily swimming, environmental education, STEM activities, character education, service learning, arts and crafts, group games, daily reading activities, walking trips to parks and the library, participation in popular City activities such as Fun in the Garden, the Kid’s Safety Academy, once a week field trips, and City-sponsored learning activities.
To keep the cost affordable for families, maintain and expand the program1, the proposed budget and recommended Measure ‘K’ funds allocation is $75,000, which will be used to offset the cost of staff for the program which sees approximately 100 participants. Because the program will be funded with City of Gonzales tax monies, the reduced rate program will continue to be limited to those who can show proof that at least one parent or guardian either lives or works in Gonzales.
3. Community Action Grants ($30,000): This program has been very successful and has become a staple in the community. This funding allows local community groups, and advocates to perform a service for the community through various unique activities (e.g., Senior Services, Adult Learning, Child Services, Educational Advancement, Quality of Life and Economic Development).
4. Police Department Community Policing and Events ($5,000): This supports the PD's community outreach efforts that include National Night Out and the development of trading cards and coins to share with the community.
5. Senior Programming ($20,000): Based on input from the community, MKOC and the Council, staff is recommending the continued funding of this effort. In FY 2024-2025, support for this program was used to develop international partnerships to bring programming to the community for this specific population. In FY 2025-2026, we plan to continue with these efforts through this program support.
6. Three full-time Fire Fighter positions to Augment Services ($250,000): The Gonzales Fire Department has a long and rich history of utilizing volunteers to cover the community; however, with the increased large fires that annually appear to plague the State, CalFire is keeping their temporary/seasonal positions longer, which has made it very difficult for department to attract volunteers. With the support of the TUT Measure K Committee, 3 eight-month seasonal Firefighter positions were approved and added in FY 2021-2022; however, because Firefighters are in such high demand and Cal Fire is making it more difficult to retain Firefighters, in order to provide the level of coverage needed for our Community, the Council approved converting the three seasonal positions to full time.
7. Fire Truck Purchase ($120,000): City staff has been able to secure $630,000 in CDBG funding towards the purchase of a Fire Truck from the County; however, there is a shortfall of $120,000 to complete the purchase. The current fire trucks are both over 15 years old and have a lot of mechanical problems. Without these additional funds, we would not be able to purchase the truck, and it will be hard for us to keep up with continued escalating costs.
8. City Sports Programming ($10,000): Our City Sports leagues continue to grow each year, not only are there more participants in our programs, but we have made more sports available. There is also added interest in other sports leagues that we are attempting to start up with other cities.
These funds allow us to continue to provide a variety of healthy activities and options for our residents.
Recommended for FY 2025-2026 - Group 1A
9. Truck Ban Work and Signs ($30,000): City staff has secured $52,000 for the work of purchasing and installing Truck Ban signs throughout the City and on Highway 101. However, there is a shortfall to complete the project. These additional funds would allow us to complete the project in order to help protect our streets from further deterioration.
10. Aquatics Programming ($10,000): This support allows the City to continue to provide aquatics programming to the entire community. The current pool fees do not offset the costs of pool repairs and staffing. These funds would allow us to continue providing an adequate level of service and the staffing needed to run the facility.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ___ No
Explain: The Measure ‘K’ Transaction and Use Tax offers a significant source of funds for the City to undertake public projects that it might otherwise not be able to do. When there are budget constraints, the first programs to go are always recreation and non-mandate public facing services. With Measure K funds those programs are able to continue, and thus we can continue to support our mission and vision of having a healthy and thriving community.
City services will be delivered in a cost-effective, respectful and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ___No.
Explain: Please refer to the explanation written above for the Vision.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: The formation of the Measure ‘K’ Oversight Committee ensures transparency regarding how tax resources are allocated amongst the five areas described above. They then provide their recommendations to the City Council for approval.
BUDGET
Staff is projecting that Measure K will bring in approximately $800,000 in Fiscal Year 2025-2026.
CONCLUSION
It is recommended that the City Council adopt Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Prioritized List of Services and Programs to be Funded with Tax Proceeds Received from the Measure ‘K’ Transaction and Use Tax, During Fiscal Year 2025-2026, Including Funding Allocations.
Attachments:
1. Resolution No. 2025-23