Gonzales City Council
September 21, 2026

AGENDA

JOINT CITY COUNCIL/SUCCESSOR AGENCY

REGULAR MEETING

COUNCIL CHAMBERS
117 FOURTH STREET, GONZALES, CA 93926
MONDAY, SEPTEMBER 21, 2026
6:00 PM

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. PRESENTATIONS

4.1 Update on the Vista Lucia Project

5. BUSINESS FROM THE PUBLIC

6. CONSENT AGENDA

6.1 Approve the Joint City Council/Successor Agency Regular Meeting Minutes of September 8, 2026
City Council/Successor Agency Members:

Mayor Pro Tem/Vice Chair Liz Silva, Council/Agency Member Scott Funk, Council/Agency Member Maria Orozco, Mayor/Chair Jose L. Rios

PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function.

You will be allowed two minutes for your comments.

If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on the day of the meeting to the City Clerk at [email protected]
Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed two (2) minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action.

All matters listed under the Consent Agenda are considered routine by the City Council and will be adopted by one action of the Council unless any Council Member has a question or wishes to make a statement or discuss an item. In that event, the Mayor will remove the item from the Consent Calendar for separate consideration.

September 8, 2026 Minutes
1 6.2 Approve Accounts Payable Warrants #54384-54442

6.3 City Manager Report

6.4 Community Engagement & Recreation Activity Report

6.5 Community Development Department Activity Report

6.6 Fire Department Activity Report

6.7 Police Department Activity Report

6.8 Public Works/City Engineer Department Activity Report

6.9 Resolution No. 2026-62, A Resolution of the City Council of the City of Gonzales Supporting Proposition 1, The Veterans and Affordable Housing Bond Act of 2026

6.10 Resolution No. 2026-63, A Resolution of the City Council of the City of Gonzales Accepting Parcel C, A Public Alley Dedication, as Described in the Proposed and Attached Parcel Map Subdividing the Land Shown in R.983-OR- 406, Being a Portion of Block XIV as Shown Upon the Maps of the Town of Gonzales Surveyed by Chas Healey in April 1875 and Recorded in Volume 1 of Cities and Towns at Page 41, Records of Monterey County, CA.

7. GONZALES YOUTH COUNCIL UPDATES

8. BUSINESS FROM CITY COUNCIL

8.1 Consider Appointment of Voting Delegate for the League of California Cities Conference

8.2 Board/Committee Reports
League of California Cities Monterey Bay Division
Association of Monterey Bay Area Governments
Monterey Salinas Transit

9. BUSINESS FROM CITY MANAGER

10. ADJOURNMENT
Warrants #54384-54442
City Manager Report August 2026
Activity Report Pictures
Activity Report Pictures
Measure Text and LAO Analysis - Exhibit A
Resolution No. 2026-62
Resolution No. 2026-63
Bassetti Urban Lot Split Parcel Map
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (831) 675-5000. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (CFR 35.102-35.104 ADA Title II). This is a public meeting and as such, can be seen live by people present or online and is being recorded; therefore; anything you say or do here is public information.

The recordings are available online.
2 Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

I, Mary Villegas, Deputy City Clerk of the City of Gonzales, do hereby certify that a copy of the foregoing Joint City Council/Successor Agency Regular Meeting Agenda was posted at City Hall, Council Chambers, and on the City’s website by Thursday, September 17, 2026, at 5:00pm.

Mary Villegas 9/17/26
Mary Villegas Date
3 CITY OF GONZALES
AGENDA
ITEM

6.1 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Approve the Joint City Council/Successor Agency Regular Meeting Minutes of September 8, 2026

CITY MANAGER
ATTACHMENTS:

September 8, 2026 Minutes
4

MINUTES

JOINT MEETING OF THE

GONZALES REGULAR MEETING

AND GONZALES JOINT CITY

COUNCIL/SUCCESSOR AGENCY
TUESDAY, SEPTEMBER 8, 2026
6:00 PM

1. CALL TO ORDER
Mayor Rios called the meeting to order at 6:00pm.

2. PLEDGE OF ALLEGIANCE
The flag salute was recited by all present.

3. ROLL CALL
Attendee Name Title Status
Jose L Rios Mayor/Chair Present
Liz Silva Mayor Pro Tem/Vice Chair Present
Scott Funk Member Present
Maria Orozco Member Present
STAFF PRESENT:

City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Community Development Director Taven Kinison Brown, Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas, Administrative Assistant II Marisol Gomez, Public Works Director/City Engineer Octavio Hurtado, and Police Chief Keith Wise.
5

PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N -29- 20 dated March 17, 2020 regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed two minutes for your comments.

If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on the day of the meeting to the City Clerk at [email protected]

4. PRESENTATIONS

4.1 GYC Summer Fellowship Capstone Presentation
Recreation Coordinator and GYC Advisor Olmedo introduced the Youth Council.

The following members introduced themselves and explained the reasons they joined the Gonzales Youth Council: Orlando Perez, Melanie Ochoa Valdez, Junior Ruiz, Antonella Acosta Madird, Natalia de Leon Santos, Jael Hernandez, Liz Angel Baguio, Jeyson Figueroa Santos, Izzy Mendez, Alitzel Mauro Perez, Arturo Tinoco Perez, and Maximiliano Amador.

Youth Commissioners Orlando, Melanie and Junior presented the Capstone Project explaining the Gonzales Youth Council purpose, general mission, summer fellowship, showed photos of what they did each week and provided an explanation of what they consisted of, key takeaways, next steps, future projects, recommendations, and appreciations.

4.2 Proclamation No. 2026-09 Declaring September as Childhood Cancer Awareness Month RESULT: PASSED[UNANIMOUS]
MOVER: Scott Funk
SECONDER: Liz Silva
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
Mayor Pro Tem Silva read and presented the proclamation to Brianna.

Brianna, Jacob's Heart Family Engagement Specialist, thanked the City for the proclamation.

4.3 Proclamation No. 2026-10 Proclaiming September as National Alcohol and Drug Addiction Recovery Month
RESULT: [UNANIMOUS]
MOVER: Maria Orozco
SECONDER: Liz Silva
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
Mayor Pro Tem Silva read and presented the proclamation to Denise Velasquez.

Denise Velasquez, Sun Street Centers, thanked the City for the proclamation and continued support. 6

5. BUSINESS FROM THE PUBLIC
Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed two (2) minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action.

Mayor Rios asked those commenting to keep a proper decorum, no name calling and no derogatory gestures.

Andrew Castillo, commented about trash on the sidewalk by the Chevron entrance on Fifth Street, asked the Mayor to sponsor a model ordinance which he drafted and provided to staff, and to bring it forward as a formal agenda item. He talked about legal authority to adopt local anti-discrimination protections, elaborated on the protections, and asked the Council to direct the City Attorney to review this draft and report back in writing by September 19th on its legality and place it on the September 21st agenda for public discussion.

Henry Martinez III commented about walking around his district and shared the people's concerns about high rent, high businesses rent, high taxes, and loud music at night.

Henry Martinez Sr. told the Council and Police about the time he ran 12 years ago and he felt he was demonized. He hoped they didn’t do the same since he is not a demon and he doesn't hate cops, just the bad ones. He also told the ex-Mayor the high water rates and property taxes were wrong and no one should get a pay raise.

Roman Barba, commented about going door to door and ran into people complaining about motor homes, vehicles and trailers parked on lawns, cars pounding music, faded lines at the post office area parking lot, and people changing oil on the street across from the bakery.

Henry Martinez Jr., via zoom, talked about dirty streets, dead trees, and not supporting any future school measures or City measures.

6. CONSENT AGENDA
All matters listed under the Consent Agenda are considered routine by the City Council and will be adopted by one action of the Council unless any Council Member has a question or wishes to make a statement or discuss an item. In that event, the Mayor will remove the item from the Consent Calendar for separate consideration.

6.1 Approve the Joint City Council/Successor Agency/Successor Housing Agency/Electric Authority/Municipal Electric Utility Meeting Minutes of August 17, 2026

6.2 Approve Accounts Payable Warrants #54273-54382

6.3 Resolution No. 2026-54, A Resolution of the City Council of the City of Gonzales Approving an Amendment to the Gonzales Salary Classification Plans for Fiscal Years 2022-2023, 2023-2024, 2024- 2025, and 2025-2026, and Repealing Resolutions in Conflict Herewith

6.4 Resolution No. 2026-56, A Resolution of the City Council of the City of Gonzales Amending the Adopted Conflict of Interest Code

6.5 Resolution No. 2026-57, A Resolution of the City Council of the City of Gonzales Authorizing the Execution of a Memorandum of Understanding Between the City of Gonzales and the Gonzales Police Officers Association (GPOA) for the period covering July 1, 2026 through June 30, 2027 7

6.6 Resolution No. 2026-58, A Resolution of the City Council of the City of Gonzales Establishing the July 1, 2026 to June 30, 2027 Level of Benefits for Miscellaneous Employees; and Resolution No. 2026- 59, A Resolution of the City Council of the City of Gonzales Establishing the July 1, 2026 to June 30, 2027 Level of Benefits for Management Employees

6.7 Resolution No. 2026-61, A Resolution of the City Council of the City of Gonzales Approving the Purchase of One Trailer Mounted Trash Pump for the Municipal Wastewater Treatment Plant in the Amount of $58,130.14 from Thompson Pump Through the Sourcewell Cooperative Purchasing Program RESULT: PASSED[UNANIMOUS] Consent Agenda Items
MOVER: Liz Silva
SECONDER: Maria Orozco
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco

7. REGULAR AGENDA

7.1 Resolution No. 2026-60, A Resolution of the City Council of the City of Gonzales Adopting the Vision Zero Action Plan for the City of Gonzales
Staff Report: Public Works Director Hurtado presented the staff report via powerpoint presentation explaining the plan overview, safety data, community engagement, safety challenge areas, safety projects and strategies, prioritizing investments, grant funding, and projects.

Public Comment: Andrew Castillo spoke in support of adopting the Vision Zero Action Plan and shared a concern about speeding on Fairview Drive.

Henry Martinez Sr. talked about never being invited on any committees to talk about anything and shared that the north side was a big safety area with people speeding, blocking intersections, 10th Street being dark at night, and police not patrolling his side.

Roman Barba talked about not riding his bike in Gonzales since he got a ticket and riding in other Cities, faded bike lanes and crosswalks, and bad streets.

Henry Martinez Jr., via zoom, commented the whole presentation was about certain things and areas but the number one problem is the Police Department running stop signs, shooting people and shooting guns in alleyways.

Mayor Rios asked him to stick to the subject matter.

Mr. Martinez Jr. said the police is a safety issue, and people don't trust the police.

Mayor Rios said that was the same broken record he has heard over and over.

Mr. Martinez Jr. responded nothing was done.

Mayor Rios told him he was not sticking to the subject which was the presentation regarding Vision Zero. He asked staff if there were any other comments via email.

Deputy City Clerk Villegas announced staff received a letter from Monterey Salinas Transit via email his afternoon expressing strong support for the adoption of the Vision Zero Plan. 8

8. GONZALES YOUTH COUNCIL UPDATES
Commissioners Rodriguez and Ochoa reported on their participation in the Summer Fellowship Program; National Night Out event; speaking at Board of Supervisors meeting regarding the Vista Lucia Project; speaking at the LAFCo meeting; GYC members application and recruitment process; GYC Orientation; announced the next meeting; and elaborated on the High School activities and events.

9. BUSINESS FROM CITY COUNCIL

9.1 Board/Committee Reports
TAMC - Mayor Rios reported on the last meeting regarding discussions on the Highway 68 corridor, and the County's traffic impact fees.

Mayor Selection Committee - Mayor Rios said he couldn't attend.

Salinas Valley Recycles - Mayor Pro Tem Silva reported on the free disposal of mattresses and reminded the community to not dump stuff on the road, but to call the hauler who can go and pick up stuff. She announced the next meeting on Thursday, September 17th at 6:00pm in the Chambers.

9.2 Oral Communications
Council Member Funk thanked Orlando and the rest of the GYC members for attending the Board of Supervisors and LAFCo meetings which made a great difference.

Council Member Orozco echoed Council Member Funk's comments. She thanked the students also for attending and speaking at both meetings and for tonight's summer fellowship presentation. She also mentioned the Rotary Club will be inviting them to one of their meetings.

Mayor Pro Tem Silva thanked the GYC for their capstone presentation and reported on the Monterey Fair results. She also announced the cooling center at the Community Center tomorrow from 12:00pm to 5:00pm, the Senior Luncheon next Thursday, and tomorrow is Admissions Day for the State of California.

She also asked the Mayor if we can adjourn the meeting in memory of the tragic events of September 11, 2001.

Mayor Rios complimented the GYC Members who attended the Board of Supervisors and LAFCo meetings and for their excellent comments. He gave kudos to Council Member Orozco and previous City Manager Rene Mendez for coming up with the Youth Council plan years ago. He mentioned he heard nothing but positive comments about Public Works Director Hurtado and appreciated how well he makes the City look.

He talked about how the City is always being criticized for a number of reasons like the cost of everything going up, but he doesn't hear people complaining about the gasoline going up or the cost of milk or other stuff, and gave an example of how much homes cost over 40 years ago. He said it was absolutely essential that we get Vista Lucia project here and wanted to make sure people know about the September 28th LAFCo meeting once confirmed so they can speak up.

City Manager Gil confirmed it was for the 28th and those in the interest list of about 400 will be notified.

Mayor Rios concluded he was disappointed because he heard from the insurance agent about the fire district rating from 3 to 10. He said he spoke to the retired Fire Chief who explained to him some things that should have and could have happened that maybe would have kept our rating a little higher than what it is. 9

He continued expressing his disappointment and said it should have been caught before it happened. He also wanted to follow up on the complaints regarding RV vehicles connected to sewage although he knows we're probably putting some people out of homes but he ordinance is the ordinance. He said it seemed like nobody is following up on that and the blocked driveways and sidewalks.

10. BUSINESS FROM CITY MANAGER
City Manager Gil announced the Cooling Center tomorrow at the Community Center, the meeting with the Youth Council tomorrow to answer questions about the Vista Lucia Project, the Town Hall meeting on September 16th at the Community Center at 6:00pm, the Paint the Town Purple event on September 19th in Downtown Salinas, and the Hometown Heros registration is open. In regard to the RV situation, she said staff has been following up on that and have taking action by sending letters. Regarding the fire district, she added that as she had mentioned to the Council, that was a staffing issue and not having have the funding to increase our staffing levels, and we wouldn't have had it even if the Measure B passed. She said she can discuss this if they have any further questions and they are going to try to see if there are any other options because of funding.

Mayor Rios said when he talked to the Fire Chief, he had said they had a plan which included paying the off duty firemen and she and Mike decided not to. He believed that was cheap insurance to keep the rating at a lower rate and elaborated on his opinion.

Community Development Director Kinison Brown reported on the Board of Supervisors and LAFCo meetings outcome and announced the LAFCo meeting on September 28th at 3:00pm where they will consider the whole project. He said the information was sent out to the list of interested people in housing which is over 400 people and it also includes realtors, builders, teachers and housing advocates. He also reported that staff is on top of code enforcement and when they see life, health, safety issues, those are top of the list. He added that if something is suspicious, staff doesn't have the authority to look over a fence on what a neighbor may know or may not know, so staff works on facts and with each other internally checking on things, responding to complaints and sending notices, but they have so many days to come into compliance and respond to the City.

Mayor Rios asked for a moment of silence to always remember 9/11.

A moment of silence was observed by all present.

11. ADJOURNMENT
The Joint meeting was adjourned at 7:35pm.

RESULT: PASSED[UNANIMOUS]
MOVER: Liz Silva
SECONDER: Maria Orozco
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
ATTEST:

Mary Villegas, Deputy City Clerk
10 CITY OF GONZALES
AGENDA
ITEM

6.2 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Approve Accounts Payable Warrants #54384-54442

CITY MANAGER
ATTACHMENTS:

Warrants #54384-54442
11 12
13 14
15 16
17 18
19 CITY OF GONZALES
AGENDA
ITEM

6.3 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: City Manager Report

CITY MANAGER
ATTACHMENTS:

City Manager Report August 2026
20 Finally on April 27th we celebrated a day that so many of us have been waiting for – the August was an exciting month for us as we welcomed students back to school for the 26/27 school year. We held the first ever Paint the Valley Purple event at Central Park in collaboration with Supervisor Lopez, the other South County Cities, the American Cancer Society, and its local organizers. This year, dedicated organizers made it their mission to engage the South County communities and make them part of the event to honor those who have fought the battle against cancer. Here is Gonzales, it was a beautiful and somber Saturday event where we celebrated and honored those who bravely fought the disease. Supervisor Lopez’s Office was kind enough to sponsor banners that now adorn our downtown in honor of those touched by the illness. We hope to continue the program next year and honor more of our brave men and women.

Housing
On August 24th, the Vista Lucia housing project hit a major milestone; the Board of Supervisors approved the final step for the application to be deemed complete so that it could be submitted to the LAFCo Commission for final consideration and approval. The final application was submitted the following day and is now scheduled for a LAFCo hearing on September 28th at 3:00pm in the Monterey County Board of Supervisors Chambers. For more information or to be added to the Interested in Housing List, please contact the Community Development Director at [email protected].

City of Gonzales
City Manager Report
August 2026
June 2023
21 Community Engagement
On August 26th, the City received the final approval on a competitive grant application submitted to TAMC for a total of $3.4 million dollars. The City was awarded the grant, and work to improve our local City streets is expected to begin in the Spring of 2027. Improvements will take place on Fourth Street, Fifth Street, Alta Minor, the Industrial Park, and Rincon Road, with speed cushions being installed on Fairview Drive and Cielo Vista Drive.

Save the Date:
 Relay for Life event in Downtown Salinas September 19th, 4:00pm-9:00pm  Community-wide Garage Sale October 10th – 11th, Deadline to Register is October 8th
 Veterans Day Hometown Heroes Banners & Celebration November 10th, Central Park, 11:00am, registration is currently open. You can scan the code on the flyer for more information.
22 CITY OF GONZALES
AGENDA
ITEM

6.4 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Community Engagement & Recreation Activity Report

RECREATION/COMMUNITY ENGAGEMENT DEPARTMENT
Current Activities
Kid Power
The first week of August marked our final week of Summer Camp. We celebrated with a big water balloon fight followed by an end-of-camp barbecue at the pool. Thank you to Frank from the Public Works Department for barbecuing for us, and to staff from the City, Public Works, Pool, Fire, and Police Departments who joined us for the celebration.

After taking a week to reset, Kid Power After School reopened on Monday, August 17 th
. We have been
helping students get back into their school routines, complete homework, and adjust to being back in school and moving into a new grade level. We continue to make time for crafts, games, and outdoor activities.

Recreation/ Community Engagement
On Tuesday, August 4
th
, the Recreation and Community Engagement Department participated in National Night Out, connecting with community members and sharing upcoming programming and event information. We also supported the Annual Salinas Valley Relay for Life by selling raffle tickets, with 100% of proceeds benefiting theAmerican Cancer Society.

On Saturday,August 8
th
, South County cities came together for the inaugural Paint the Valley Purple event in collaboration with the American Cancer Society and Supervisor Lopez and her staff. We extend our sincere thanks to Supervisor Lopez and his staff for funding the banners, allowing us to honor 10 local families and recognize their loved ones during an intimate ceremony at Central Park.

On Monday, August 24
th
, we welcomed back CSUMB Intern Maria Cortes, who will continue her internship with the City of Gonzales through Spring 2027. Maria will primarily assist with flyer development, the City Newsletter, and GonzalesYouth Council initiatives. We continue to offer senior programming through the Alliance on Aging, currently hosting Chair Yoga on the 3 rd and 4thTuesdays of each month with an average of 12-15 attendees per class. Wreath-making will return in October, with a date to be confirmed.

Bingocize, offered through the Monterey County Health Department, continues to have strong participation. 23 Seniors have expressed interest in additional mobility and exercise-focused programming. The current Bingocize session will conclude on September 14
th
, however, the Health Department is working to obtain
additional certifications that will allow them to return and expand exercise programming in our communities.

At the end of August, we met with the Monterey Bay Economic Partnership to discuss a potential collaboration focused on expanding digital access in Gonzales. The initiative would provide laptops, assistance with online services such as healthcare, insurance, and DMV services, and Digital Literacy Classes to help community members become more comfortable using technology. We are accepting registrations for our Hometown Heroes program in collaboration with the American Legion and Auxiliary, who have generously contributed toward the cost of each banner, reducing the registration fee to $35.A ceremony will be held at Central Park on November 10 th
. Applications are available at City Hall and
on the City website, with registration closing Friday, October 9 th
.

GonzalesYouth Council
August was a busy month for the Gonzales Youth Council (GYC) as members focused on recruitment efforts for the upcoming year. GYC Commissioners participated in National Night Out and helped promote the Council and its open applications. Applications closed at the end of August, resulting in 10 new GYC members. The group will host its onboarding orientation on Saturday, September 5 th
.

On August 12
th
, the GYC met with the League of Women Voters to discuss bringing voter registration resources and presentations to Gonzales High School to increase youth pre-registration and civic engagement.

Students were excited to connect with the volunteers and learn more about the organization’s mission.

On Tuesday, August 5
th
, and Monday, August 24
th
, the GYC attended two important meetings regarding the Vista Lucia Project. The first was the Board of Supervisors meeting regarding the City’s application, followed by a meeting hosted by the Local Agency Formation Commission of Monterey County. Several GYC members participated in public comment at both meetings, sharing personal experiences and how they have been impacted by housing challenges.

ATTACHMENTS:

Activity Report Pictures
24 Community Engagement
& Recreation Department
Summer Camp/ Kid Power
Some of our Kid Power Kiddos playing
Monopoly together.

Chair Yoga Instructor, Efrain, with
some of our senior participants.

Frank, from our Public Works Department, Our 2026 Summer Camp Team. who generously helped to BBQ during our
End of Summer Celebration.

Recreation/ Community Enagagement
The Gonzales Knights Cheerleaders
during our Paint the Valley Purple
event at Central Park.

Hometown Heroes flyer.
25 Community Engagement
& Recreation Department
Gonzales Youth Council
GYC during National Night Out event
on 4 Street.
th
The GYC with Supervisor Lopez, after
a Board of Supervisors Meeting.

The GYC Commissioners alongside the
League of Women Voters Volunteers.
26 Community Engagement
& Recreation Department
Summer Camp
Our Summer Camp Kids exploring
during the visit from Salinas Valley
Recycles.

Volleyball Picture Day.

Our older summer camp kids, leading an
activity for our younger kids.

Our campers during one of their crafting
activities.

Adult Softball Champions-Upper Bracket.
27 CITY OF GONZALES
AGENDA
ITEM

6.5 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Taven M. Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Community Development Department Activity Report

COMMUNITY DEVELOPMENT DEPARTMENT
SURPLUS LAND ACT - Update
One residential development company is currently exploring potential housing project designs on the Marchetti property along Alta Street with the Community Development Director and the City Manager. Staff is in process with Piini Realty to appraise and seek a fair market value for the several properties listed by the city for Surplus Land disposition.

HOUSING
The Vista Lucia Specific Plan. On September 28, 2026, at 3:00 pm in the Board of Supervisor’s Chambers in Salinas, the Local Area Formation Commission will be considering the City of Gonzales’s Annexation request of 770-acres, to enable the Vista Lucia Specific Plan proposal.

The Puente Del Monte Specific Plan. City staff and our consultants (Slama Consulting and EMP Planning Group) continue to proceed in the preparation of the EIR.

CODE ENFORCEMENT
The City continues to meet with property owners, inspect potential violations and start documentation to progress to remedies. City staff is also looking for overgrown weeds and asking property owners to cut and maintain their properties for fire safety purposes. Recently there have been several non-responsive property owners to our “Notice toAbate.” We will be working through the next steps.

CITY BUSINESS LICENSES
The new fiscal year has begun, and all businesses are required to be current with their business licensing. 28 BUILDING DIVISION ACTIVITY
From August 1 to August 31, 2026 (31 reporting days) the City issued eight (8) permits for re-roofs, electrical work, plumbing, and a new business sign. The estimated value of improvements was $60,350.

ECONOMIC DEVELOPMENT
The Winery: The Community Development Director continues to engage in regular conversations and messages with several business interests regarding the re-use of the winery property.

Presently, City staff is conversing with Hartnell College to develop another internship to assist with Economic Development activities.

Meanwhile our several Business Spotlight Videos are accessible through our social media outlets. https://www.facebook.com/CityofGonzalesCalifornia
29 CITY OF GONZALES
AGENDA
ITEM

6.6 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: David Vasquez, Fire Captain
THROUGH: Carmen Gil, City Manager
SUBJECT: Fire Department Activity Report

CITY MANAGER

RESPONSES
There were 54 calls for service during the month of August. The only call of major significance was an MCI level 1(Mass Causalty Incident) due to a vehicle accident with six patients.

STAFFING
All full-time positions are filled. There are three active Volunteer Firefighters that work shifts as time allows. The Monterey County Regional Fire District (MCRFD) is providing Duty Chief coverage for our Fire Department. We had two applicants for Volunteer Firefighter. One will be hired. The other one dropped out due to finding a position elsewhere.

TRAINING
This month, the crews conducted training regarding heat emergencies and engine company operations with deploying cross lays. The Department is trying a new hose load to ensure there is more than enough hose at the front door for structure fires and ease of deployment and reload. This will also ensure the turnaround for availability will be quicker.

EQUIPMENT
Our new Engine (E8111) was sent to the shop for a recall and a crack that was noted on the top of cab. All covered by warranty. It is supposed to be finished within the coming week. Radios are also in the process of being updated due to old, outdated equipment that requires replacement.

PREVENTION
Two inspections were conducted in the month ofAugust, with one re-inspection. 30 CITY OF GONZALES
AGENDA
ITEM

6.7 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: Police Department Activity Report

POLICE DEPARTMENT
Crime and Arrests
The Gonzales Police Department investigated 5 Part I Crimes (Homicide, Robbery, Theft and Burglary, Rape, Assault and Motor Vehicle Theft) during the month of August 2026. During the same time last year, there were 13 Party I crimes.

During the month ofAugust, Officers made 5 arrests. During the same time last year, there were a total of 23 arrests During the month of August, the department initiated 10 Abandoned Vehicle Abatement (AVA) / 72- hour parking violation cases. 7 violations were self-abated by the registered owner upon notification of the Municipal Code Violation. During the month ofAugust, the department responded to 7Alarm Calls.

Calls for Service
The department responded to 523 calls for service in August 2026. During this month there were a total of 48 reports taken; 45 Crime / informational, 2 TrafficAccidents and 1 Driving Under the Influence (DUI).

Animal Control
During the month ofAugust 2026, theAnimal Control Officer (ACO) provided the following services. *NUMBERS DO NOT REFLECTANIMALS TRANSPORTED BY THE PUBLIC TO THE SPCA* TotalAnimals
Captured
Dead Injured Bite Cases
Returned to
Owner
Transported to
SPCA
Cats 0 4 0 0 0 0
Dogs 1 0 0 0 1 0
Total 1 4 0 0 1 0
31 Significant Cases
Although the Police Department responded to 523 calls for service during the month of August 2026, the most significant cases involved 5 Part I crimes.
0 - Homicide, 0 - Rape, 0 - Robbery, 4 -Assault, 0 - Burglary, 1- Larcenies and 0 - Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

Corporal Fierros attended an 8-hour Gang Seminar in Watsonville California on WednesdayAugust 19, 2026 .

Other
On August 4, the department hosted our annual National Night Out event. We experienced an exceptional turnout from the community. The evening provided a valuable opportunity for Officers and residents to interact and build positive relationships strengthening ongoing community engagement and neighborhood partnerships. 32 CITY OF GONZALES
AGENDA
ITEM

6.8 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Octavio Hurtado, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Public Works/City Engineer Department Activity Report

PUBLIC WORKS/CITY ENGINEER DEPARTMENT

WASTEWATER
Existing Municipal Wastewater Treatment Plant
Pond B is 90% empty. Staff plan to remove 12 inches of soil from the bottom of the pond and use the soil to continue to build up the perimeter berm along the northerly property line of the Wastewater Treatment Plant Staff is working on maximizing its available storage in anticipation of the effects of El Nino during the winter season.

The newly dredged Pond C continues to be used sparingly.

Public works staff continue to use the rented loader and dump truck to clean out the smaller percolation basins and to build up the new perimeter berm that was constructed by staff to prevent potential spills from reaching the neighboring agricultural fields.

Public works continues to grade the service roads in between the ponds to improve access.

Public works staff have been performing weed abatement around the perimeter of the ponds.

We are currently at 12 inches of free board in our primary and secondary ponds as we are holding back the release of water to lengthen the treatment time to improve the percolation rate.

The Clarification system that was rented from Rain for Rent has been removed, eliminating the monthly rental costs being incurred by the City. The rented trailer mounted pump will be replaced with a City purchased pump to eliminate the rental cost of the pump.

The aeration system has oneAerator out of service.A replacement unit is in the process of being installed.

All three lift station pumps at the headworks are working properly. 33 Staff continue to check the influent and effluent, freeboard, and run daily inspections, and collect samples for the County to conduct lab testing of Dissolved Oxygen levels, pH, and conductivity. Staff also continue to work on general plant maintenance and cleanup including weed control and access road maintenance. Staff continue to monitor and up-keep the lift stations around the City Monday, Wednesday, Friday and Saturdays.

Industrial Wastewater Treatment Facility
The Contractor (Gateway Pacific) began construction on 7/21/2025. The contractor, construction manager, design consultant, and City staff hold progress meetings every two weeks to discuss open items, status of submittal reviews, schedule, and other business. The Contractor continues to install necessary piping and pouring concrete at the headworks. Work is also being performed on the perimeter fence.

Gateway is in the process of working on the headworks, completing the aeration piping and building out the ponds.

The Contract Chief Building Official will begin conducting inspections of the project as needed to assure the Chief Building Official will be able to sign off on the project when complete.

WATER
Well 5 is out of service, Maggiora Brothers is making the repairs.

Staff tests for chlorine residual daily, and maintenance on the water system. Staff repairs chlorine leaks and performs maintenance on the wells. For the month of August, all water samples taken at the sampling stations for the water system tested negative for coliform. There were 67 door tags this month, prior to shut offs. We had 13 disconnects because of non-payment.

PARKS
A large tree at Central Park was splitting in half and showed signs of a heavily rotted center core. The tree was removed as it was deemed a threat to the public.

Staff continue to mow turf areas in the City parks regularly. Staff cleans restrooms, cleans trash, and make repairs in parks as necessary. Staff provided support Relay for Life color the town purple event at Central Park.

GOVERNMENT BUILDINGS
Staff continues to get the bugs out of the Community Center making sure items under warrantee are repaired by the contractor. Staff continue to clean the Vosti Center restrooms daily, clean the Council Chambers weekly and order all supplies for City buildings and disburses them appropriately.

DRAINAGE/WEED CONTROL/FIRE PREVENTION
Staff will begin to inspect the Storm Drain culverts along the Slough in anticipation of the winter continue to perform weed abatement in the slough as a fire prevention measure. Work has been completed between C street and First Street. Efforts will continue.

STREETS
Public works staff painted school crosswalks in anticipation of the start of the new school year.

Public works staff continues to trim trees affecting pedestrian access to sidewalks.

Fifth Street Truck Ban
34 The Truck Ban project is complete. The contractor installed the final two signs that were added to the project by the Caltrans approval process. The Ban is in place.

Fourth Street Pavement Rehab
Staff will initiate the completion of the improvement plans for the project and add the identified multimodal components included int the comprehensive multimodal grant application submitted to TAMC under the competitive RSTP call for projects. Design will be completed in the Fall and the plans will go out to bid in January/February to be ready for construction after the rainy season is over.

Grant Opportunities
The City is looking into an Extreme Heat and Community Resilience Grant opportunity to install generator to the new Community Center and the Vosti Center to be able to run cooling centers in the event of power outage.

EVENTS
Public Works assisted in putting up Relay for Life banners downtown in anticipation for the Relay for Life event in the City of Salinas.

ATTACHMENTS:

Activity Report Pictures
35 Public Works Activity Report – August 2026
PW Staff cleaning bioswells
PW staff emptying Field B at the WWTP
PW removing existing banners to put up Relay for Life
banners
36 CITY OF GONZALES
AGENDA
ITEM

6.9 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-62, A Resolution of the City Council of the City of Gonzales Supporting Proposition 1, The Veterans and Affordable Housing Bond Act of 2026

CITY MANAGER

RECOMMENDATION
It is recommended that the City Council consider and adopt Resolution No. 2026-62, A Resolution of the City Council of the City of Gonzales Supporting Proposition 1, The Veterans andAffordable Housing BondAct of 2026.

BACKGROUND
The Veterans and Affordable Housing Bond Act of 2026 would authorize the state to issue $11.25 billion in general obligation bonds to fund several categories of existing housing programs, including:
• Multifamily Housing Program
• Infill Infrastructure Grant Program
• CalHome Program
• Farmworker Housing
• Tribal Housing Grant Program
• Higher Education student housing
• Local pilot programs
• Veterans’Housing
The full text of measure and LAO Analysis are attached as ExhibitA.

Major Provisions:

The Veterans and Affordable Housing Bond Act of 2026 is a measure placed on the Nov. 3, 2026 ballot by the Legislature that would replenish existing housing programs for the development, preservation, and rehabilitation of affordable housing projects. Additionally, the measure would provide funding to support the development of youth and veteran housing and promote homeownership in California. Here are the specific funding allocations proposed in the ballot measure:
37 $5.1 billion to the Multifamily Housing Program.
$1.25 billion to provide farm and home aid for veterans under the Veterans’ Farm and Home Purchase Act of 1974.
$1.15 billion to the Housing Rehabilitation Loan Fund, to be used for supportive housing. Up to 15% shall be used to assist in the acquisition, conversion, or rehabilitation of interim housing to permanent housing. $750 million to the Portfolio Reinvestment Program to preserve existing affordable housing projects. $600 million to the CalHome Program.
$500 million to the Home PurchaseAssistance Fund for home purchase assistance programs. $500 million for the Infill Infrastructure Grant Program to assist in the construction and rehabilitation of infrastructure to support high-density, affordable, and mixed-income housing in infill locations. $450 million to the Joe Serna, Jr. Farmworker Housing Grant Fund to support housing for agricultural employees and their families.
$350 million for new affordable student housing projects. $200 million to fund the acquisition and rehabilitation of unrestricted housing units and attach long-term affordability restrictions on housing units.
$200 million to the Affordable Housing Innovation Fund to assist local housing trust funds in developing, owning, lending, or investing in affordable housing.
$200 million to the Tribal Housing Grant Program to help tribes rebuild and reconstitute their communities. $150 million for youth housing defined as housing for current or former foster youth, homeless minors or youth, or youth at risk of homelessness.

REVIEWAND ANALYSIS
The state uses general obligation bonds to fund various housing programs. Bonds are a way the state borrows money to cover the up-front costs of a development and then repays the money plus interest over time.

Proposition 1 would allow the state to sell $11.25 billion in general obligation bonds for housing purposes. This amount consists of (1) a $10 billion bond for a variety of housing programs that would be repaid by the state’s General Fund and (2) a $1.25 billion bond that would be repaid by veterans’ payments on their home loans. According to the nonpartisan Legislative Analyst’s Office, Prop. 1 would provide subsidies for as many as 40,000 multifamily rental units and about 1,200 beds for university students. The funds could also help up to 40,000 households, including about 2,100 veterans, with homeownership.

Arguments in Support:

Proponents of the measure argue that it gives Californians the opportunity to provide housing to working families, veterans, people with disabilities and seniors; helps prevent homelessness by keeping vulnerable persons in their homes; expands homeownership opportunities; and maintains strict fiscal accountability and transparency without new taxes. They also argue that it would jumpstart the construction of tens of thousands of shovel-ready affordable homes across California.

The League of California Cities, which has long supported investments that increase the supply of affordable housing, also supports Prop. 1. Cal Cities maintains that, if approved by the voters, Prop. 1 would replenish funding for several successful state programs used by cities to support affordable housing and infrastructure. Prop. 1 could also fund innovative local programs like regional housing trusts and support cities in meeting their Regional Housing NeedAssessment (RHNA) goals for current and future cycles.

In addition to funding new affordable housing projects, the measure would fund the rehabilitation and preservation of existing affordable housing, increase funding for homeownership programs, and support specific housing projects — such as student housing, infill development, supportive housing, and foster youth housing.

For the City of Gonzales, housing opportunities are critical and a top priority as the City has not been able to develop housing in over 20 years other than ADUs. The City lacks infill opportunities and the one property that we have been trying to develop for years, has been negatively affected by the lack of affordable housing programs. The City is currently working on an annexation proposal that will allow for enhanced housing opportunities, but funding will be 38 critical to support affordable housing for vulnerable populations. Proposition 1 would help communities like ours that are desperately in need of housing.

Fiscal Impact:

According to the nonpartisan Legislative Analyst's Office, the state General Fund cost to repay the bond would be $500 million to $600 million annually for about 25 years. The estimated annual cost would be about one-quarter of 1% (0.25%) of the state’s total General Fund budget.

Explain Recommendation and How it 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: Proposition 1 would support the Council’s vision for local, affordable housing opportunities.

Communities like ours have waited far too long for additional funding for housing. Affordable housing opportunities are a critical part of the quality of life of communities, without this additional support we would continue to fall short on the local housing needs.

Explain how the Recommendation Directly Implements the Mission The City Council and Staf 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 __ NA
Explain: See above for explanation.

Strong fiscal policies allow us to provide appropriate infrastructure for:

Public Safety X Yes __ No __ N/A
Housing X Yes __ No __ N/A
Recreation X Yes __ No __ N/A
Environment X Yes __ No __ N/A
Education Yes X No __ N/A
Explain: Same as above.

ALTERNATIVES
The Council can decide not to support Proposition 1. This would not be ideal as potential funding for housing would continue to be inaccessible, thus continuing to hinder our ability to bring housing to our community.

BUDGET IMPACT
There is no impact to the budget.

CONCLUSION
It is recommended that the City Council consider and adopt Resolution No. 2026-62, A Resolution of the City Council of the City of Gonzales Supporting Proposition 1, The Veterans andAffordable Housing BondAct of 2026.

ATTACHMENTS:

Measure Text and LAO Analysis - Exhibit A
Resolution No. 2026-62
39 40
SHARE THIS: Date Published: 06/25/2026 09:00 PM
SB-417 The Veterans and Affordable Housing Bond Act of 2026. (2025-2026) Senate Bill No. 417
CHAPTER 16
An act to add Part 16.1 (commencing with Section 54050) to Division 31 of the Health and Safety Code, and to add Article 5ab (commencing with Section 998.750) to Chapter 6 of Division 4 of the Military and Veterans Code, relating to housing, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. [ Approved by Governor June 25, 2026. Filed with Secretary of State June 25, 2026. ]

LEGISLATIVE COUNSEL'S DIGEST
SB 417, Limón. The Veterans and Affordable Housing Bond Act of 2026.

Under existing law, there are programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, home ownership for very low and low-income households, and downpayment assistance for first-time home buyers. Existing law also authorizes the issuance of bonds in specified amounts pursuant to the State General Obligation Bond Law and requires that proceeds from the sale of these bonds be used to finance various existing housing programs, capital outlay related to infill development, brownfield cleanup that promotes infill development, and housing-related parks. Existing law, the Veterans and Affordable Housing Bond Act of 2018, authorized, the issuance of bonds in the amount of $4,000,000,000 to finance various existing housing programs, as well as infill infrastructure financing and affordable housing matching grant programs, as well as financing for a specified program for farm, home, and mobilehome purchase assistance for veterans, pursuant to the State General Obligation Bond Law.

This bill would enact the Veterans and Affordable Housing Bond Act of 2026, which, if adopted, would authorize the issuance of bonds in the amount of $11,250,000,000, pursuant to the State General Obligation Bond Law. Of the proceeds from the sale of these bonds, $10,000,000,000 would be used to finance programs to fund affordable rental housing and home ownership programs, including, among others, the Multifamily Housing Program, the CalHome Program, and the Joe Serna, Jr. Farmworker Housing Grant Program, and $1,250,000,000 would be used to provide additional funding for the above-described program for farm, home, and mobilehome purchase assistance for veterans, as provided.

This bill would provide for submission of the bond act to the voters at the November 3, 2026, statewide general election, in accordance with specified law.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 2/3 Appropriation: no Fiscal Committee: yes Local Program: no Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites

EXHIBIT A
41 THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. This act shall be known, and may be cited, as the Veterans and Affordable Housing Bond Act of 2026.

SEC. 2. Part 16.1 (commencing with Section 54050) is added to Division 31 of the Health and Safety Code, to read:

PART 16.1. Veterans and Affordable Housing Bond Act of 2026 CHAPTER 1. General Provisions
54050. Together with Article 5ab (commencing with Section 998.750) of Chapter 6 of Division 4 of the Military and Veterans Code, this part shall be known, and may be cited, as the Veterans and Affordable Housing Bond Act of 2026.
54051. This part shall only become operative upon adoption by the voters at the November 3, 2026, statewide general election.
54052. For purposes of this part, “fund” means the Affordable Housing Bond Act Trust Fund of 2026 created pursuant to Section 54054.

CHAPTER 2. Affordable Housing Bond Act Trust Fund of 2026 and Program 54054. (a) The Affordable Housing Bond Act Trust Fund of 2026 is hereby created within the State Treasury. It is the intent of the Legislature that the proceeds of bonds issued and sold pursuant to this part, exclusive of refunding bonds issued pursuant to Section 54076, be deposited into the fund and used to fund affordable rental housing and home ownership programs as described in this chapter. (b) The proceeds of bonds issued and sold pursuant to this part for the purposes specified in this chapter shall be allocated in the following manner:
(1) Five billion one hundred million dollars ($5,100,000,000) to be deposited into the Housing Rehabilitation Loan Fund established pursuant to Section 50661 to be used for the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2. At least 10 percent of assisted units in each development receiving these funds shall be affordable to extremely low income households. (2) One billion one hundred fifty million dollars ($1,150,000,000) to be deposited into the Housing Rehabilitation Loan Fund established pursuant to Section 50661 to be used for supportive housing, as described in Section 50675.14, pursuant to the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2. The administering entity shall offer capitalized operating subsidy reserves for supportive housing units in developments receiving these funds. (A) (i) Up to 15 percent of this amount shall be made available as grants to eligible entities specified in Section 50675.1.3 to acquire capital assets for the acquisition, conversion, or rehabilitation of interim housing to permanent housing, including scattered site projects for persons who are homeless, chronically homeless, or are at risk of homelessness, as defined in Part 578.3 of Title 24 of the Code of Federal Regulations, the purchase of affordability covenants and restrictions for units, relocation costs for individuals who are being displaced as a result of rehabilitation of existing units, and capitalized operating subsidies for units purchased, converted, or altered with funds provided by this section. (ii) Any program or project that uses funds received for any of the purposes described in this subparagraph shall be subject to the regulatory streamlining provisions of Section 50675.1.5 of the Health and Safety Code and subdivision (i) of Section 50675.1.3. (iii) Any conflict between the other requirements of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2) and this paragraph shall be resolved in favor of this paragraph, as may be set forth in the guidelines authorized pursuant to Section 54077. (B) (i) One hundred fifty million dollars ($150,000,000) of this sum shall be used for youth housing. (ii) For purposes of this subdivision, “youth housing” means housing for current or former foster youth, homeless minors or youth, or youth at risk of homelessness, including, but not limited to, housing that 42 assists them develop the skills and resources they need to make a successful transition to independent, self-sufficient adulthood.
(iii) Funds made available under this subparagraph shall be used only for the capital costs of developing, acquiring, rehabilitating, or preserving youth housing, and shall not be used to fund the operation or delivery of services.
(iv) Any funds not encumbered for the purpose of this subparagraph within three years of availability shall revert for general use in the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2.
(3) Seven hundred fifty million dollars ($750,000,000) to be appropriated by the Legislature, to the program commonly known as the Portfolio Reinvestment Program established pursuant to Chapter 5.5 (commencing with Section 50606) of Part 2. Any funds not encumbered for the purposes of this paragraph by November 3, 2036, shall revert for general use in the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2.
(4) Two hundred million dollars ($200,000,000) to be appropriated by the Legislature, to a program to fund the acquisition and rehabilitation of unrestricted housing units and attach long-term affordability restrictions on the housing units, while safeguarding against the displacement of current residents. Any funds not allocated by the administering entity within the first three years shall be made available by the administering entity for the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2). (5) Six hundred million dollars ($600,000,000) to be deposited into the Self-Help Housing Fund established pursuant to Section 50697.1. The moneys in the fund shall be available for the CalHome Program authorized by Chapter 6 (commencing with Section 50650) of Part 2, to provide direct, forgivable loans to assist development projects involving multiple home ownership units, including single-family subdivision, for self-help mortgage assistance programs, and for manufactured homes. These funds may also be expended for any authorized purpose of the program. Any funds not encumbered for the purposes of this paragraph by November 3, 2036, shall revert for general use in the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2.
(6) Five hundred million dollars ($500,000,000) to be deposited into the Home Purchase Assistance Fund established pursuant to Section 51342. Notwithstanding Section 13340 of the Government Code and Section 50697.1, these funds are hereby continuously appropriated to the California Housing Finance Agency without regard to fiscal years, for purposes of the home purchase assistance program established pursuant to Chapter

6.8 (commencing with Section 51341) of Part 3.
(7) Four hundred fifty million dollars ($450,000,000) to be deposited into the Joe Serna, Jr. Farmworker Housing Grant Fund, established pursuant to Section 50517.5, to fund grants or loans, or both, for the construction or rehabilitation of housing for agricultural employees and their families or for the acquisition of manufactured housing as part of a program to address and remedy the impact of current and potential displacement of farmworker families from existing labor camps, mobilehome parks, or other housing. These funds may also be expended for any authorized purpose of the program. These funds may also be used to provide technical assistance pursuant to Section 54007. Any funds not encumbered for the purposes of this paragraph by November 3, 2036, shall revert for general use in the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2.
(8) Two hundred million dollars($200,000,000) to be appropriated by the Legislature, to the Tribal Housing Grant Program established pursuant to Chapter 6.4 (commencing with Section 50651) to finance housing and housing-related activities that will enable tribes to rebuild and reconstitute their communities. Any funds not encumbered for the purposes of this paragraph by November 3, 2036, shall revert for general use in the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2. (9) Five hundred million dollars ($500,000,000) for the Infill Infrastructure Grant Program of 2019 established pursuant to Section 53559 of the Health and Safety Code for infill incentive grants to assist in the new construction and rehabilitation of infrastructure that supports high-density affordable and mixed-income housing in locations designated as infill. Any funds not encumbered for the purposes of this paragraph by November 3, 2036, shall revert for general use in the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2.
(10) Three hundred fifty million dollars ($350,000,000) to be appropriated by the Legislature for new affordable student housing projects. This funding shall be split evenly among the University of California and 43 the California State University. Funded student housing projects shall meet the terms specified in subdivision (f) of Section 17201 of the Education Code. For these projects, the University of California and California State University shall meet the accountability and reporting requirements specified in subdivisions (i) and (o) of Section 17201 of the Education Code.
(11) Two hundred million dollars ($200,000,000) to be deposited in the Affordable Housing Innovation Fund established pursuant to subparagraph (F) of paragraph (1) of subdivision (a) of Section 53545. Moneys in the fund shall be available, upon appropriation by the Legislature, pursuant to the Local Housing Trust Fund Matching Grant Program established pursuant to Section 50842.2 to fund competitive grants or loans to local housing trust funds that develop, own, lend, or invest in affordable housing and be used to create pilot programs to demonstrate innovative, cost-saving approaches to creating or preserving affordable housing.

Local housing trust funds shall be derived on an ongoing basis from private contribution or governmental sources that are not otherwise restricted in use for housing programs. These funds may also be expended for any authorized purpose of this program. Any funds not encumbered for the purposes of this paragraph within three years of availability shall be reverted for general use in the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2, unless the Department of Housing and Community Development determines that the funds should revert sooner due to diminished demand. (12) Notwithstanding paragraphs (1) to (11), inclusive, the Business, Consumer Services and Housing Agency or its successor and its administering departments may, upon appropriation by the Legislature, align or streamline the programs funded pursuant to this subdivision to improve efficiency and accelerate the deployment of funds, provided that expenditures remain consistent with the purposes and eligible uses approved by the voters and the Legislature.
54056. (a) The Legislature may, from time to time, amend any law related to programs to which funds are, or have been, allocated pursuant to this chapter for the purposes of improving the efficiency and effectiveness of those programs or to further the goals of those programs. (b) The Legislature may amend this chapter in order to reallocate the proceeds of bonds issued and sold pursuant to this part among the programs to which funds are to be allocated pursuant to this chapter as necessary to effectively promote the development of affordable housing in this state. (c) The Department of Housing and Community Development or administering entity may disburse any funds made available to housing development projects pursuant to this chapter during the construction period.

CHAPTER 3. Fiscal Provisions
54060. Bonds in the total amount of ten billion dollars ($10,000,000,000), exclusive of refunding bonds issued pursuant to Section 54076, or so much thereof as is necessary as determined by the committee, are hereby authorized to be issued and sold for carrying out the purposes expressed in this part and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. Any bond, when sold, issued, and delivered, shall be and constitute a valid and binding general obligation of the state, and the full faith and credit of the state is hereby pledged for the punctual payment of both principal of, and interest on, those bonds as the principal and interest become due and payable. 54062. The bonds authorized by this part shall be prepared, executed, issued, sold, paid, retired, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), except subdivisions (a) and (b) of Section 16727 of the Government Code, and all of the provisions of that law as amended from time to time apply to the bonds and to this part, except as provided in Section 54078, and are hereby incorporated in this part as though set forth in full in this part.
54064. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this part, the Housing Finance Committee created by Section 53524 is continued in existence. For the purposes of this part, the Housing Finance Committee is “the committee” as that term is used in the State General Obligation Bond Law.
(b) References to the “board” as used in this part and in the State General Obligation Bond Law, shall mean the Housing Development and Finance Committee. This authority may be delegated to the Department of Housing and Community Development or the California Housing Finance Agency for programs they administer. The Department of Housing and Community Development is designated the “board” for programs administered by 44 the department, and the California Housing Finance Agency is the “board” for programs administered by the agency.
54066. Upon request of the board stating that funds are needed for purposes of this part, the committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. Bonds may bear interest subject to federal income tax. 54068. There shall be collected annually, in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in the amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collections of state revenues to do and perform each and every act that is necessary to collect that additional sum.
54070. Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this part, an amount that will equal the total of both of the following:
(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable. (b) The sum that is necessary to carry out Section 54074, appropriated without regard to fiscal years. 54072. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for purposes of this part. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold, excluding any refunding bonds authorized pursuant to Section 54076, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 54074 and not yet returned to the General Fund. The board shall execute any documents as required by the Pooled Money Investment Board to obtain and repay the loan. Any amount loaned shall be deposited into the fund to be allocated in accordance with this part.
54074. For purposes of carrying out this part, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold, excluding any refunding bonds authorized pursuant to Section 54076, less any amount loaned pursuant to Section 54072 and not yet repaid and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited into the fund to be allocated in accordance with this part. Any moneys made available under this section shall be returned to the General Fund, plus the interest that the amounts would have earned in the Pooled Money Investment Account, from moneys received from the sale of bonds that would otherwise be deposited into that fund.
54076. The bonds issued and sold pursuant to this part may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code.

Approval by the voters of the sale and issuance of bonds as described in this part includes approval of the sale and issuance of bonds issued to refund bonds issued pursuant to this part, including any prior issued refunding bonds. A bond refunded with the proceeds of a refunding bond as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.
54076.5. Proceeds of the bonds, in an amount not to exceed the principal amount of bonds authorized to be issued by the Veterans and Affordable Housing Bond Act of 2026 (excluding any refunding bonds issued pursuant to Section 54076), are expected to be and may be used to reimburse any lawfully available source used to pay costs of projects or programs (including funds of particular state departments or agencies that may be spent on costs of the projects or programs) authorized pursuant to the Veterans and Affordable Housing Bond Act of 2026 and paid after November 3, 2026, provided, however, any costs that are to be reimbursed from proceeds of bonds shall not have been paid from the proceeds of any other indebtedness unless that prior indebtedness will be retired with the proceeds of the bonds.
45 54077. To implement the funding detailed in Section 54054, the administering entity may adopt guidelines establishing requirements for administration of its financing programs. The guidelines are not subject to Chapter

3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. 54078. Notwithstanding any provisions in the State General Obligation Bond Law, the maturity date of any bond authorized by this part shall not be later than 35 years from the date of issuance of the bond. 54080. The proceeds from the sale of bonds authorized by this part are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.
54082. Notwithstanding any provision of the State General Obligation Bond Law with regard to the proceeds from the sale of bonds authorized by this part that are subject to investment under Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code, the Treasurer may maintain a separate account for investment earnings.
54083. Notwithstanding any other provision of this part, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this chapter that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the earnings and investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds required or desirable under federal law to maintain the tax exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.
54084. (a) Subject to subdivision (b), all moneys derived from premiums and accrued interest on bonds sold pursuant to this part shall be transferred to the General Fund as a credit to expenditures for bond interest. (b) Amounts derived from premiums may be reserved and used to pay the costs of bond issuance before transfer to the General Fund.

CHAPTER 4. Accountability
54088. The administering entity shall publish in an annual report detailed information regarding the investments resulting from this bond pursuant to Section 50408 of the Health and Safety Code.

SEC. 3. Article 5ab (commencing with Section 998.750) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:

Article 5ab. The Veterans and Affordable Housing Bond Act of 2026 998.750. Together with Part 16.1 (commencing with Section 54050) of Division 31 of the Health and Safety Code, this article shall be known, and may be cited, as the Veterans and Affordable Housing Bond Act of 2026. 998.751. (a) (1) The State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), as it may be amended from time to time, is adopted for the purpose of the preparation, execution, issuance, sale, retirement, redemption, and repayment of, and otherwise providing with respect to, the bonds authorized to be issued by this article, and the provisions of that law are included in this article, as though set out in full in this article, except for both of the following:
(A) Subdivisions (a) and (b) of Section 16727 and subdivision (a) of Section 16755 of the State General Obligation Bond Law shall not apply.
(B) Paragraph (1) of subdivision (c) of Section 16753 of the State General Obligation Bond law shall be replaced in full by the following: “The Treasurer shall require that a successful bidder in a competitive sale or underwriter in a negotiated sale provide a good faith deposit of at least one-half of 1 percent of the principal amount of the bonds for which the bidder is the successful bidder or for which an underwriter submits a proposal. The good faith deposit shall be in the amount that is reasonably determined by the Treasurer at least one day prior to a competitive sale or negotiated sale of bonds, as applicable. The 46 Treasurer shall specify the form of the deposit, which may be a cashier’s check, a surety bond, a wire transfer of funds, or a combination thereof. The deposit shall not bear interest.” (2) All references in this article to “herein” refer both to this article and that law as incorporated herein. (b) For purposes of the State General Obligation Bond Law, the Department of Veterans Affairs is designated the “board.”
998.752. As used herein, the following terms have the following meanings:
(a) “Board” means the Department of Veterans Affairs.
(b) “Bond” means a veterans bond, a state general obligation bond, issued pursuant to this article adopting the provisions of the State General Obligation Bond Law as provided herein. (c) “Bond act” means this article authorizing the issuance of state general obligation bonds and adopting the State General Obligation Bond Law by reference.
(d) “Committee” means the Veterans’ Finance Committee of 1943 established by Section 991. (e) “Fund” means the Veterans’ Farm and Home Building Fund of 1943 established by Section 988. (f) “Payment Fund” means the Veterans’ Bonds Payment Fund established by Section 988.6. 998.753. For the purpose of creating a fund to provide farm and home aid for veterans in accordance with the Veterans’ Farm and Home Purchase Act of 1974 (Article 3.1 (commencing with Section 987.50)), and of all acts amendatory thereof and supplemental thereto, the committee may create a debt or debts, liability or liabilities, of the State of California, in the aggregate amount of not more than one billion two hundred fifty million dollars ($1,250,000,000), not including the amount of any refunding bonds issued in accordance with Section 998.762, in the manner provided herein.
998.754. (a) All bonds authorized by this article, when sold, issued, and delivered, shall be and constitute a valid and legally binding general obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of and interest on the bonds as the principal and interest become due and payable.
(b) There shall be collected annually, in the same manner and at the same time as other state revenue is collected, the sum, in addition to the ordinary revenues of the state, as is required to pay the principal of, and interest on, these bonds becoming due and payable each year. It is the duty of all officers charged by law with any duty in regard to the collection of state revenues to do and perform each and every act that is necessary to collect that additional sum.
(c) On the dates on which funds are to be remitted pursuant to Section 16676 of the Government Code for the payment of debt service on the bonds in each fiscal year, there shall be transferred to the Payment Fund to pay the debt service all of the moneys in the fund, not in excess of the amount of debt service then due and payable.

If the moneys transferred on the remittance dates is less than the debt service then due and payable, the balance remaining unpaid shall be transferred to the General Fund out of the fund as soon as it shall become available, together with interest thereon from the remittance date until paid, at the same rate of interest as borne by the bonds, compounded semiannually. Notwithstanding any other provision of law to the contrary, this subdivision shall apply to all veterans’ farm and home purchase bond acts pursuant to this chapter. This subdivision does not grant any lien on the fund, the Payment Fund, or the moneys therein to the holders of any bonds issued under this article. For the purposes of this subdivision, “debt service” means the principal (whether due at maturity, by redemption, or acceleration), premium, if any, or interest payable on any date with respect to any series of bonds. This subdivision shall not apply, however, in the case of any debt service that is payable from the proceeds of any refunding bonds.
998.755. Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for purposes of this article, without regard to fiscal year, a sum of moneys that will equal both of the following:
(a) That sum annually necessary to pay the principal of, and the interest on, the bonds issued and sold as provided herein, as that principal and interest become due and payable. 47 (b) That sum necessary to carry out Section 998.756. 998.756. For the purposes of this article, the Director of Finance may authorize the withdrawal from the General Fund of a sum of moneys not to exceed the amount of the unsold bonds which have been authorized by the committee to be sold pursuant to this article, excluding any refunding bonds authorized pursuant to Section 998.762, less any amount loaned pursuant to Section 998.757 and not yet repaid and any amount withdrawn pursuant to this section and not yet returned to the General Fund. Any sums withdrawn shall be deposited into the fund. Any moneys made available under this section to the board shall be returned by the board to the General Fund, plus the interest that the amounts would have earned in the Pooled Money Investment Account, from the sale of bonds for the purpose of carrying out this article. 998.757. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purposes of carrying out this article, less any amount withdrawn pursuant to Section 998.756 and not yet returned to the General Fund.

The amount of the request shall not exceed the amount of unsold bonds which the committee has, by resolution, authorized to be sold for the purpose of carrying out this article, excluding any refunding bonds authorized pursuant to Section 998.762, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn pursuant to Section 998.756 and not yet returned to the General Fund. The board shall execute whatever documents are required by the Pooled Money Investment Board to obtain and repay the loan.

Any amounts loaned shall be deposited into the fund to be allocated by the board in accordance with this article. 998.758. Upon request of the board, supported by a statement of its plans and projects approved by the Governor, the committee shall determine by resolution whether or not it is necessary or desirable to issue any bonds authorized pursuant to this article in order to carry out the board’s plans and projects, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out these plans and projects, progressively, and it is not necessary that all the bonds be issued or sold at any one time.
998.759. (a) As long as any bonds authorized pursuant to this article are outstanding, the Secretary of Veterans Affairs shall, at the close of each fiscal year, require a survey of the financial condition of the Division of Farm and Home Purchases, together with a projection of the division’s operations, to be made by an independent public accountant of recognized standing. The results of each survey and projection shall be reported in writing by the public accountant to the Secretary of Veterans Affairs, the California Veterans Board, the appropriate policy committees dealing with veterans affairs in the Senate and the Assembly, and the committee. (b) The Division of Farm and Home Purchases shall reimburse the public accountant for these services out of any moneys that the division may have available on deposit with the Treasurer. 998.760. (a) The Treasurer shall issue and sell the bonds authorized by this article in the amount determined by the committee to be necessary and desirable pursuant to Section 998.758. The bonds shall be issued and sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.
(b) Whenever the committee deems it necessary for an effective sale of the bonds, the committee may authorize the Treasurer to sell any issue of bonds at less than their par value, notwithstanding Section 16754 of the Government Code. However, the discount on the bonds shall not exceed 3 percent of the par value thereof. 998.761. Out of the first moneys realized from the sale of bonds as provided herein, there shall be redeposited into the General Obligation Bond Expense Revolving Fund, established by Section 16724.5 of the Government Code, the amount of all expenditures made for the purposes specified in that section, and the moneys may be used for the same purpose and repaid in the same manner whenever additional bond sales are made. All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this article shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except that amounts derived from premium may be reserved and used to pay costs of bond issuance prior to any transfer to the General Fund.
998.762. Any bonds issued and sold pursuant to this article may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code. The approval of the voters for the issuance of bonds pursuant to this article includes approval for the issuance of bonds issued to refund bonds originally issued under this article or any previously issued refunding bonds. Any 48 bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.
998.763. Notwithstanding any provision of the State General Obligation Bond Law or this article, if the Treasurer sells bonds pursuant to this article for which bond counsel has issued an opinion to the effect that the interest on the bonds is excludable from gross income for purposes of federal income tax purposes, subject to any conditions that may be designated, or otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the earnings on those proceeds, and may use or direct those proceeds or earnings to pay any rebate, penalty, or other payment required by federal law or take any other action with respect to the investment and use of bond proceeds required or permitted pursuant to federal law necessary or desirable to maintain the tax-exempt status of the bonds or to obtain any other advantage pursuant to federal law on behalf of the funds of this state. 998.764. The proceeds from the sale of bonds authorized by this article are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by Article XIII B. “Declaration of Intent” proceeds of the bonds, in an amount not to exceed the principal amount of bonds authorized to be issued by this article (excluding any refunding bonds issued pursuant to Section 998.762), are expected to be and may be used to reimburse any lawfully available source used to pay costs of projects or programs (including funds of particular state departments or agencies that may be spent on costs of those projects or programs) authorized pursuant to this article and paid after November 3, 2026, provided, however, any costs that are to be reimbursed from proceeds of bonds shall not have been paid from the proceeds of any other indebtedness unless that prior indebtedness will be retired with the proceeds of the bonds.

SEC. 4. Sections 2 and 3 of this act shall become operative upon the adoption by the voters of the Veterans and Affordable Housing Bond Act of 2026.

SEC. 5. Sections 2 and 3 of this act shall be submitted to the voters as a single measure, the Veterans and Affordable Housing Bond Act of 2026, at the November 3, 2026, statewide general election, in accordance with provisions of the Government Code and the Elections Code governing the submission of a statewide measure to the voters.

SEC. 6. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to maximize the time available for the analysis and preparation of the proposed issuance of bonds pursuant to this act, it is necessary that this act take effect immediately. 49 November 3, 2026 Ballot

PROPOSITION 1
Authorizes Bonds for Housing Affordability Programs. Legislative Statute.

ANALYSIS OF MEASURE

BACKGROUND
Public Sector Funds Some Home Building. In most years, about 100,000 houses and apartments are built in California. Most of these housing units are built entirely with private dollars. Some, however, receive financial help from federal, state, or local governments. In the case of housing funded by the state, the state government generally provides local governments, nonprofit organizations, and private developers with grants or low-cost loans to fund a portion of the housing units’ construction costs. Typically, housing built with these funds must be sold or rented to Californians with low incomes.

Bonds Are a Common Way for the State to Fund Home Building and Homeownership Programs. Over the past few decades, the state has used general obligation bonds to fund various housing programs. Bonds are a way the state borrows money to cover the up-front costs of a development and then repays the money plus interest over time. The last statewide general obligation bond for affordable housing was approved by voters in 2024, providing $2 billion to provide housing for veterans and other people with mental health or substance use challenges who are facing homelessness.

Home Loan Program for Veterans. The state’s veterans home loan program provides home loans to eligible veterans, including veterans who may not otherwise qualify for a home loan.

Under the program, the state sells general obligation bonds to investors and uses the funds to provide loans to veterans to purchase homes. Participating veterans repay the cost of the bonds through their payments on their home loan. The last statewide general obligation bond for veterans home loans was approved by voters in 2018, which provided $1 billion for the program. 50 November 3, 2026 Ballot

PROPOSAL
New General Obligation Bond for Housing. Proposition 1 allows the state to sell $11.25 billion in general obligation bonds for housing purposes. This amount consists of (1) a $10 billion bond for a variety of state housing programs that would be repaid by the General Fund and (2) a $1.25 billion bond that would be repaid by veterans’ payments on their home loans. (The General Fund is the account the state uses to pay for most public services, including education, health care, and prisons. For more information on the state’s General Fund-supported bonds, please see “Overview of State Bond Debt” later in this guide.) State Housing Programs. Proposition 1 provides bond funding for various types of housing programs, which are summarized in Figure 1. The funds would be allocated over a number of years. The major categories of housing programs supported by the bond are:
• Affordable Multifamily Housing Programs. Proposition 1 provides $7.2 billion to acquire, build, or renovate rental housing, such as apartment buildings. These programs generally provide local governments and private developers with lowinterest loans to fund part of the project cost. In exchange, projects generally must reserve units for low-income households for a period of 55 years. Some of this funding would be used for supportive housing, which provides on-site services (such as mental health and substance use counseling) to certain residents. • Homeownership Programs. Proposition 1 provides $1.1 billion to support homeownership for low- and moderate-income households. Some of the funds would be used to provide homebuying assistance for first-time homebuyers through loans that generally do not have to be paid back until the home is sold or paid off. Other funds would be provided to nonprofit organizations and other entities for activities such as acquiring land to build homes for eligible low-income homebuyers and repairing existing homes owned by low-income households. • Infrastructure Programs. Proposition 1 provides $500 million for a variety of infrastructure projects to support affordable housing developments, such as water, sewage, parks, and transportation improvements.
• Farmworker Housing Program. Proposition 1 provides $450 million in loans and grants to build or renovate housing for farmworkers. Program funds could be used for both rental and owner-occupied housing.
• Higher Education Student Housing Programs. Proposition 1 provides $350 million, split evenly between the University of California and California State University, for affordable student housing.
• Tribal Housing Program. Proposition 1 provides $200 million in grants to tribes.

Funds could be used for various housing-related purposes, including construction and repair of rental and owner-occupied housing.
• Local Pilot Programs. Proposition 1 provides $200 million that would be available to cities, counties, and certain other entities for pilot projects aimed at developing housing at reduced costs.
51 November 3, 2026 Ballot

Veterans Housing Program. Proposition 1 also provides $1.25 billion for home loan assistance to veterans. Veterans generally use these loans to purchase single-family residences, condominiums, farms, and mobile homes.

FISCAL EFFECTS
Increased State Cost to Repay the $10 Billion Bond for Housing Programs. The state General Fund cost to repay the bond would be $500 million to $600 million annually for about 25 years. The estimated annual cost would be about one-quarter of 1 percent (0.25 percent) of the state’s total General Fund budget. Since the state has to pay interest on the money it borrows, the total cost of the bond would be about 15 percent more (after adjusting for inflation) than if the state paid up front with money it already has.

No Direct State Cost for Veterans Housing Program. Veterans participating in the home loan program would make monthly payments to the state, allowing the state to repay the bonds.

These payments have always covered the amount owed on the bonds, meaning the program has always operated at no direct cost to the state.

Administrative Costs. A number of state entities would experience increased costs to administer the various housing programs. A portion of the bond funds would cover these costs.

Impact of Funds. Much of the funding from Proposition 1 would be used together with other government monies to provide housing assistance. The bond funds would provide subsidies for up to 40,000 multifamily rental units, as well as about 2,500 units for farmworkers and about 1,200 beds for university students. The funds also would help up to 40,000 households, including about 2,100 veterans, with homeownership by providing homebuyer assistance and supporting the production and repair of homes.
52 November 3, 2026 Ballot

YES/NO STATEMENT
A YES vote on this measure means: The state could borrow $11.25 billion to support veterans and affordable housing.

A NO vote on this measure means: The state could not borrow $11.25 billion to support veterans and affordable housing.

SUMMARY OF LEGISLATIVE ANALYST’S ESTIMATE OF NET STATE AND

LOCAL GOVERNMENT FISCAL IMPACT
• Increased state cost of $500 million to $600 million annually for about 25 years to repay the housing bond.

BALLOT LABEL
Fiscal Impact: Increased state cost of $500 million to $600 million annually for about 25 years to repay the housing bond.
53

RESOLUTION NO. 2026-62

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES SUPPORTING PROPOSITION 1: THE VETERANS AND AFFORDABLE HOUSING BOND ACT OF 2026
WHEREAS Cal Cities and its member cities advocate for secure investments to increase the supply of affordable housing; and
WHEREAS, Proposition 1, the Veterans and Affordable Housing Bond Act of 2026, will appear on the November 3, 2026 statewide ballot and authorize the state to issue $11.25 billion in state general obligation bonds to provide funding to build and preserve affordable homes and expand homeownership opportunities across California; and WHEREAS, Proposition 1 is anticipated to provide funding to fast-track numerous already-approved, shovel-ready affordable homes, turning stalled projects into homes for families who need them; and
WHEREAS, Proposition 1 is anticipated to provide funding to build homes working families can afford, so that the teachers, firefighters, and nurses who serve the City of Gonzales can afford to live in the community they serve; and
WHEREAS, Proposition 1 honors our veterans by dedicating $1.25 billion solely to veterans' housing and homeownership opportunities, including the CalVet Home Loan Program, which has already helped almost a million veterans and their families; and WHEREAS, Proposition 1 helps our most vulnerable neighbors by providing funding to create and preserve housing for low-income residents, seniors, those who are homeless or at risk of homelessness, foster youth experiencing homelessness, and people with disabilities; and WHEREAS, Proposition 1 does not raise taxes, but may unlock matching federal funds, bringing tax dollars Californians send to Washington back home to California; and WHEREAS, Proposition 1 comes with strict accountability, public reporting, and clear requirements, so that voters can see how many homes get built, where, and at what cost; and WHEREAS, Proposition 1 benefits veterans, seniors, low- and middle-income Californians, persons with disabilities, working families, farmworkers, students, first-time homebuyers, and our youth; and
WHEREAS, the City Council of the City of Gonzales finds that the safe, affordable homes and veteran housing investments made possible by Proposition 1 are in the best interest of the residents of Gonzales.
54

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Gonzales supports Proposition 1, the Veterans and Affordable Housing Bond Act of 2026.

PASSED AND ADOPTED by at least a four-fifths vote at a regular meeting of the City Council of the City of Gonzales duly held on the 21st day of September 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
55 CITY OF GONZALES
AGENDA
ITEM

6.10 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 21, 2026
FROM: Octavio Hurtado, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-63, A Resolution of the City Council of the City of Gonzales Accepting Parcel C, A Public Alley Dedication, as Described in the Proposed and Attached Parcel Map Subdividing the Land Shown in R.983-OR- 406, Being a Portion of Block XIV as Shown Upon the Maps of the Town of Gonzales Surveyed by Chas Healey in April 1875 and Recorded in Volume 1 of Cities and Towns at Page 41, Records of Monterey County, CA.

PUBLIC WORKS/CITY ENGINEER DEPARTMENT

RECOMMENDATION
It is recommended that the City Council:

Adopt Resolution No. 2026-63, A Resolution of the City Council of the City of Gonzales Accepting Parcel C, A Public Alley Dedication, as Described in the Proposed and Attached Parcel Map Subdividing the Land Shown in R.983-OR-406, Being a Portion of Block XIV as Shown Upon the Maps of the Town of Gonzales Surveyed by Chas Healey in April 1875 and Recorded in Volume 1 of the Cities and Towns at Page 41, Records of Monterey County, CA; and
Grant the City Manager authority to sign for minor changes to the public alley dedication if required by the County Recorder's Office

BACKGROUND
David Bassetti is in the process of preparing a parcel map to perfect an SB 9 Urban Lot Split per section 66411.7 in the Subdivision MapAct. The homes at 219 Second Street and 231 Second Street are currently on one parcel.

On May 14, 2026, the Community Development Director gave ministerial approval of the proposed Urban Lot Split.

With ministerial approval, the local agency’s role is limited to checking that the project meets objective zoning, subdivision, and design standards. No personal judgement, discretionary review, or public hearing is allowed. 56 On June 18, 2026, the City Engineer completed the second review of the Minor Subdivision Tentative Map submitted by Monterey County Surveyors Inc. prepared for David Bassetti. Comments were made to ensure the proposed lots are served individually with utilities and make sure proper easements are proposed in the parcel map and that all utilities serving adjacent parcels are addressed with utility easements. No exemptions were taken and the applicant was instructed to proceed in preparing the Parcel Map and Dedication submittal for review.

On July 29, 2026, the first submittal of the Urban Lot Split Parcel Map was received and submitted to CSG for plan check. The plan check was completed and returned on August 20, 2026 and forwarded comments to the applicant.

The second submittal was received from the applicant and forwarded to CSG on September 2, 2026 for final checking.

The Map will be ready to record upon resolution of an easement required to serve the neighboring property at 208 South Center Street.

REVIEWAND ANALYSIS
The public alley dedication will allow the City of Gonzales access to the existing sewer line in the alley that services the homes on the north side of Second Street and the south side of Third Street. The Bassetti’s are proposing to dedicate the portion of the alley that is adjacent to their property with the recording of the parcel map.

With this dedication, the City will have full width alley dedication along the frontage of the proposed new lot. No improvements in the alley are proposed.

Explain Recommendation and How it 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:Accepting a portion of the alley will remove the burden of asking for a temporary easement in the event the City needs to perform any improvements to the existing sewer trunk main in an effort to improve the quality of life of the residence of Gonzales.

Explain how the Recommendation Directly Implements the Mission The City Council and Staf 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.

Explain:Accepting a portion of the Alley will allow the City to service the existing sewer main making sure proper sewer service is provided to all residences, is part of the provision of excellent services.

City services will be delivered in a cost-ef ective, 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.

Explain:Having legal rights to access the City’s sewer system allows for cost effective maintenance ensures keeping disruptions to a minimum.

Strong fiscal policies allow us to provide appropriate infrastructure for:

Public Safety X Yes __ No __ N/A
Housing X Yes __ No __ N/A
Recreation Yes X No __ N/A
57 Environment X Yes __ No __ N/A
Education Yes X No __ N/A
Explain: Accepting the dedication allows the alley to be public in conformance with the majority of the alleys in the City allowing sewer infrastructure to me maintained.

ALTERNATIVES
The following alternatives are provided for Council consideration:

1. Approve staff’s recommendations;

2. Modify and approve the proposed Resolution;

3. Do not approve staff’s recommendations; or

4. Provide other direction to staff.

BUDGET IMPACT
There is no cost to the City associated with acceptance of this right of way.

CONCLUSION
It is recommended that the City Council:

Adopt Resolution No. 2026-63, A Resolution of the City Council of the City of Gonzales Accepting Parcel C, A Public Alley Dedication, as Described in the Proposed and Attached Parcel Map Subdividing the Land Shown in R.983-OR-406, Being a Portion of Block XIV as Shown Upon the Maps of the Town of Gonzales Surveyed by Chas Healey in April 1875 and Recorded in Volume 1 of the Cities and Towns at Page 41, Records of Monterey County, CA; and
Grant the City Manager authority to sign for minor changes to the public alley dedication if required by the County Recorder's Office
ATTACHMENTS:

Resolution No. 2026-63
Bassetti Urban Lot Split Parcel Map
58 RESOLUTION NO. 2026-63

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

ACCEPTING PARCEL C, A PUBLIC ALLEY DEDICATION, AS DESCRIBED IN

THE PROPOSED AND ATTACHED PARCEL MAP SUBDIVIDING THE LAND SHOWN IN R.983-OR-406, BEING A PORTION OF BLOCK XIV AS SHOWN

UPON THE MAPS OF THE TOWN OF GONZALES SURVEYED BY CHAS
HEALEY IN APRIL 1875 AND RECORDED IN VOLUME 1 OF CITIES AND TOWNS AT PAGE 41, RECORDS OF MONTEREY COUNTY CA.

WHEREAS, the proposed dedication is being offered in a parcel map performing an Urban Lot Split under SB9 and Section 66411.7 of the Subdivision Map Act; and WHEREAS, Urban Lot Splits under SB9 can be approved ministerially and do not require Planning Commission or City Council approval; and WHEREAS, with SB9 ministerial approvals, the local agency’s role is limited to checking that the project meets objective zoning, subdivision, and design standards; and WHEREAS, the Community Development Director has approved the SB9 Urban Lot Split on May 14, 2026; and
WHEREAS, the parcel map has been reviewed by the City’s Contract City Surveyor for compliance with the map act and City standards; and WHEREAS, the parcel map has been reviewed by the City Engineer to make sure the newly created lots can be serviced by the various utilities and that utility easements are in place where needed; and
WHEREAS, an offer of dedication of land cannot be approved ministerially and required acceptance by the City Council; and
NOW THEREFORE BE IT HEREBY RESOLVED, by the City Council of the City of Gonzales as follows:

1. Accepts on behalf of the public, Parcel C, offered for dedication for public use upon the recording of the Urban Lot Split Parcel Map prepared for David Bassetti in conformance with the terms of the offer of dedication.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 21th day of September 2026 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
59 ABSENT: COUNCIL MEMBERS:

Jose Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
60 Parcel Map David Bassetti
61 DETAIL SCALE: 1"=20' Parcel Map David Bassetti
62