Agenda packet — Grass Valley City Council, April 9, 2024

GRASS VALLEY
City Council Regular Meeting, Capital Improvements Authority and Redevelopment "Successor Agency"
Tuesday, April 09, 2024 at 6:00 PM
Council Chambers, Grass Valley City Hall | 125 East Main Street, Grass Valley, California Telephone: (530) 274-4310 – Fax: (530) 274-4399
E-Mail: [email protected] Web Site: www.cityofgrassvalley.com AGENDA
Any person with a disability who requires accommodations to participate in this meeting should telephone the City Clerk’s office at (530)274-4390, at least 48 hours prior to the meeting to make a request for a disability related modification or accommodation.

Mayor Jan Arbuckle, Vice Mayor Hilary Hodge, Councilmember Bob Branstrom, Councilmember Haven Caravelli, Councilmember Tom Ivy

MEETING NOTICE
City Council welcomes you to attend the meetings electronically or in person at the City Hall Council Chambers, located at 125 E. Main St., Grass Valley, CA 95945. Regular Meetings are scheduled at 6:00 p.m. on the 2nd and 4th Tuesday of each month. Your interest is encouraged and appreciated.

This meeting is being broadcast “live” on Comcast Channel 17 and 18 by Nevada County Media, on the internet at www.cityofgrassvalley.com, or on the City of Grass Valley YouTube channel at https://www.youtube.com/@cityofgrassvalley.com Members of the public are encouraged to submit public comments via voicemail at (530) 274-4390 and email to [email protected]. Comments will be reviewed and distributed before the meeting if received by 5pm. Comments received after that will be addressed during the item and/or at the end of the meeting. Council will have the option to modify their action on items based on comments received. Action may be taken on any agenda item.

Agenda materials, staff reports, and background information related to regular agenda items are available on the City’s website: www.cityofgrassvalley.com. Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet will be made available on the City of Grass Valley website at www.cityofgrassvalley.com, subject to City staff’s ability to post the documents before the meeting.

Please note, individuals who disrupt, disturb, impede, or render infeasible the orderly conduct of a meeting will receive one warning that, if they do not cease such behavior, they may be removed from the meeting. The chair has authority to order individuals removed if they do not cease their disruptive behavior following this warning. No warning is required before an individual is removed if that individual engages in a use of force or makes a true threat of force. (Gov. Code, § 54957.95.)

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City of Grass Valley, CA AGENDA April 09, 2024
Council Chambers are wheelchair accessible and listening devices are available. Other special accommodations may be requested to the City Clerk 72 hours in advance of the meeting by calling (530) 274-4390, we are happy to accommodate.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL
AGENDA APPROVAL - The City Council reserves the right to hear items in a different order to accomplish business in the most efficient manner.

REPORT OUT OF CLOSED SESSION

INTRODUCTIONS AND PRESENTATIONS
PUBLIC COMMENT - Members of the public are encouraged to submit public comments via voicemail at (530) 274-4390 and email to [email protected]. Comments will be reviewed and distributed before the meeting if received by 5pm. Comments received after 5pm will be addressed during the item and/or at the end of the meeting. Council will have the option to modify their action on items based on comments received. Action may be taken on any agenda item. There is a time limitation of three minutes per person for all emailed, voicemail, or in person comments, and only one type of public comment per person. Speaker cards are assigned for public comments that are on any items not on the agenda, and within the jurisdiction or interest of the City. Speaker Cards can be pulled until the opening of public comment at which time sign ups will no longer be allowed.

These cards can be found at the City Clerks desk. If you wish to speak regarding a scheduled agenda item, please come to the podium when the item is announced. When recognized, please begin by providing your name and address for the record (optional). Thirty minutes of public comment will be heard under this item in order of the speaker card assigned and the remaining general public comments will be heard at the end of the meeting. We will begin with number one.

CONSENT ITEMS -All matters listed under the Consent Calendar are to be considered routine by the City Council and/or Grass Valley Redevelopment Agency and will be enacted by one motion in the form listed. There will be no separate discussion of these items unless, before the City Council and/or Grass Valley Redevelopment Agency votes on the motion to adopt, members of the Council and/or Agency, staff or the public request specific items to be removed from the Consent Calendar for separate discussion and action but Council action is required to do so (roll call vote).Unless the Council removes an item from the Consent Calendar for separate discussion, public comments are invited as to the consent calendar as a whole and limited to three minutes per person.

1. Approval of the Regular Meeting Minutes of March 26, 2024 Recommendation: Council approve minutes as submitted.

2. Approval of the Special Council Meeting Minutes of April 2, 2024 Recommendation: Council approve minutes as submitted.

3. Canvass and Statement of Results for the March 5, 2024 Primary Municipal Election.

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City of Grass Valley, CA AGENDA April 09, 2024
CEQA: Not a Project
Recommendation: Adopt Resolution No. 2024-12 finding and declaring the results of the March 5, 2024 Primary Municipal Election.

4. California Department of Tax and Fee Administration Agreements to implement the Local Sales and Use Tas Approved under Measure B.

CEQA: Not a project
Recommendation: That Council adopts; 1) Resolution No. 2024-13 authorizing the City Manager to sign required agreements with the California Department of Tax and Fee Administration to implement the Local Sales and Use Tax approved under Measure B. 2) Resolution No. 2024-14 authorizing the Examination of Sales or Transactions and use Taxes Records by the City Manager, Finance Director, and HDL Companies.

5. Resolution No. 2024-16 Temporarily Decreasing the Additional Business Taxes Collected from Cannabis Businesses within the City of Grass Valley for High Potency Cannabis and Cannabis Products.

CEQA: Not a Project.

Recommendation: That Council adopt Resolution No. 2024-16 to temporarily decrease the additional business taxes collected from cannabis businesses operating within the City of Grass Valley for high-potency cannabis products for five years.

6. Resolution No. 2024-15 20% Water Conservation from all City Customers Due to inoperable Drum and South Yuba Canals
CEQA: Not a Project.

Recommendation: That Council adopt Resolution No. 2024-15 requesting all City Water Customers voluntarily conserve 20% of their normal water usage for the next 90 days.

7. 2024 Annual Measure E Street Rehabilitation Project – Authorization to Award Contract CEQA: Categorically Exempt – Section 15301 “Existing Facilities” Recommendation: That Council 1) award a contract for the 2024 Annual Measure E Street Rehabilitation Project to Consolidated Engineering, Inc., 2) authorize the Mayor to execute the construction contract, subject to legal review and, 3) authorize the City Engineer to approve construction change orders for up to 10% of the contract amount.

8. Health and Safety Code Section 13146.4 Report on Fire Inspections CEQA: Not a project
Recommendation: That Council adopt Resolution 2024-15 which accepts the Grass Valley Fire Department report pursuant to Health and Safety Code Section 13146.4 annual inspections for 2022 and 2023

9. Appointment of Planning Commissioner
CEQA: Not a project
Recommendation: That Council approve the appointment of Jacob McDonald as Planning Commissioner for Mayor Arbuckle

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City of Grass Valley, CA AGENDA April 09, 2024

10. An amendment to an existing Memorandum of Understanding with Nevada County associated with the implementation of SB 1383 and other unfunded state mandates related to organic waste collection and recycling.

CEQA: Not a project
Recommendation: Authorize the Mayor to sign the amendment to the Memorandum of Understanding with Nevada County and direct the Finance Director to adjust the budget.

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION OR SEPARATE ACTION AND /

OR ANY ADDED AGENDA ITEMS

REORGANIZATION RELATED ITEMS

PUBLIC HEARING

11. Second Reading of Ordinance No. 826 Imposing a 3/8-cent (0.375%) Transaction and Use Tax for Fire Resiliency and Vegetation Management
CEQA: Not a Project.

Recommendation: That Council hold a second reading, waive the full reading, by title only, and adopt Ordinance No. 826 known as the “2023 Grass Valley Transactions and Use Tax Ordinance”.

ADMINISTRATIVE

12. FY 2023-24 Mid-Year Budget Review
CEQA: Not a project
Recommendation: It is recommended that the City Council, by MOTION, approve the Mid-Year Budget Review and recommended revisions.

BRIEF REPORTS BY COUNCIL MEMBERS

CONTINUATION OF PUBLIC COMMENT

ADJOURN

POSTING NOTICE
This is to certify that the above notice of a meeting of The City Council, scheduled for Tuesday, April 9, 2024 at 6:00 PM was posted at city hall, easily accessible to the public, as of 5:00 p.m. Friday, April 5, 2024.
________________________
Taylor Day, City Clerk

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GRASS VALLEY
City Council Regular Meeting, Capital Improvements Authority and Redevelopment "Successor Agency"
Tuesday, March 26, 2024 at 6:00 PM
Council Chambers, Grass Valley City Hall | 125 East Main Street, Grass Valley, California Telephone: (530) 274-4310 – Fax: (530) 274-4399
E-Mail: [email protected] Web Site: www.cityofgrassvalley.com

MINUTES

CALL TO ORDER
Meeting called to order at 6:02 pm.

PLEDGE OF ALLEGIANCE
Mayor Arbuckle led the pledge of allegiance.

ROLL CALL

PRESENT
Councilmember Bob Branstrom
Councilmember Haven Caravelli
Councilmember Tom Ivy
Vice Mayor Hilary Hodge
Mayor Jan Arbuckle

AGENDA APPROVAL -
Motion made to approve agenda by Councilmember Branstrom, Seconded by Vice Mayor Hodge.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember Ivy, Vice Mayor Hodge, Mayor Arbuckle

REPORT OUT OF CLOSED SESSION
No closed session.

INTRODUCTIONS AND PRESENTATIONS

1. Presentation of the 2023 Firework Sponsor Awards

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Item # 1.

City of Grass Valley, CA MINUTES March 26, 2024

PUBLIC COMMENT -
Public Comment: General Public Comment Sign in Sheet attached. Speakers #1 thru #9 spoke noted changes to #7 Cedar, #8 Ralph Silberstine, & #9 Yasmin, & Matthew Coulter

CONSENT ITEMS -
Public Comment: Matthew Coulter
Motion made to approve consent as submitted by Councilmember Branstrom, Seconded by Councilmember Caravelli.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember Ivy, Vice Mayor Hodge, Mayor Arbuckle

2. Approval of the Regular Meeting Minutes of March 12, 2024.

Recommendation: Council approve minutes as submitted.

3. Local Emergency Proclamation (Winter Storm of February 2023) CEQA: Not a project
Recommendation: To continue the Winter Storm February 24th, 2023 to March 1st, 2023 proclamation declaring a Local State of Emergency

4. Downtown Streetscape Improvements Project – Final Acceptance CEQA: Exempt – Procedural Action
Recommendation: That Council: 1) accept the Downtown Streetscape Improvements Project as complete, and 2) authorize the City Engineer to file a Notice of Completion with the County Recorder.

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION OR SEPARATE ACTION AND /

OR ANY ADDED AGENDA ITEMS

REORGANIZATION RELATED ITEMS

PUBLIC HEARING

ADMINISTRATIVE

5. Administrative Draft of a City Civility Pledge to add to the City’s Code of Conduct and Meeting Agendas
CEQA: Not a Project.

Recommendation: That Council 1) consider and approve the proposed Civility Pledge; and 2) direct staff to update the City’s Code of Conduct and meeting agendas to include a Civility Pledge.

Tim Kiser, City Manager, gave presentation to the council.

Council discussed where on the agenda will the pledge go and no need to be read each at each meeting but added to the introduction to the meeting text and made plural.

Public comment: Zack, Yasmine, Matthew Coulter

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Item # 1.

City of Grass Valley, CA MINUTES March 26, 2024
Council discussed how it is meant for the Council and Staff.

Motion made to 1) consider and approve the proposed Civility Pledge and put into the City’s Code of Conduct; and 2) determine at a later date where to place in the meeting agendas by Vice Mayor Hodge, Seconded by Councilmember Branstrom.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember Ivy, Vice Mayor Hodge, Mayor Arbuckle

6. Introduction of an Ordinance Approving the Development Agreement with Grass Valley Provisions, LLC and the Reduction of additional tax on high potency cannabis and cannabis products cultivated, manufactured, and sold.

CEQA: Not a Project.

Recommendation: That Council 1) consider the proposed Resolution to temporarily decrease the additional business taxes collected from cannabis businesses operating within the City of Grass Valley for high-potency cannabis products; and 2) Introduce the attached Ordinance approving the Development Agreement with Grass Valley Provisions LLC, waive full reading, and read by title only Tim Kiser, City Manager, gave presentation to the council.

Public Comment: Dianna Gamzon, Ian, Yasmine, Cameron Brady, Harry Bennett, Matthew Coulter
Council directed staff to bring back the Resolution reducing the THC tax to 0% temporarily for five years.

Recess minute taken at 8:05 pm meeting back to order at 8:12pm.

7. Update on amendments to the Waste Management Franchise Agreement tied to statemandated implementation of SB 1383, AB 341, and AB 1826 (Recycling and Organic Waste programs)
CEQA: Not a project.

Recommendation: That Council provide general input and direction to staff.

Zac Quentmeyer, Deputy Public Works Director, gave update to the council.

Council discussed the cost of different structures.

Public Comment: Sherly Osgood, Pamela Osgood
Council direction for staff is to bring back all costs including a bi-weekly trash pick up.

BRIEF REPORTS BY COUNCIL MEMBERS
Councilmember Caravelli attended an Arts Councils Presentation, was a panelist on the Panel of Art Committee, and went to a ERC Board Meeting. Councilmember Ivy attended a Pioneer Board Meeting and a NCTC meeting. Councilmember Branstrom attended a Nevada County Arts Economy meeting, went to his nephew's wedding, and went to a Cal Cities environmental policies committee. Vice Mayor Hodge had nothing to report. Mayor Arbuckle wanted to share that its Women's History Month. She attended the National League of Cities Conference in Washington DC, a California League of Cities Public safety policy meeting, and was happy to say that California recognized Ghidotti High School and a top school.

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Item # 1.

City of Grass Valley, CA MINUTES March 26, 2024

CONTINUATION OF PUBLIC COMMENT

ADJOURN
Meeting adjourned at 9:14 pm.
____________________________ __________________________ Jan Arbuckle, Mayor Taylor Day, City Clerk
Adopted on: ______________

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Item # 1.

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Item # 1.

GRASS VALLEY
Special City Council Meeting
Tuesday, April 02, 2024 at 5:00 PM
Council Chambers, Grass Valley City Hall | 125 East Main Street, Grass Valley, California Telephone: (530) 274-4310 – Fax: (530) 274-4399
E-Mail: [email protected] Web Site: www.cityofgrassvalley.com

MINUTES

CALL TO ORDER
Meeting called to order at 5:01 pm.

PLEDGE OF ALLEGIANCE
Mayor Arbuckle led the pledge of allegiance.

ROLL CALL

PRESENT
Councilmember Bob Branstrom
Councilmember Haven Caravelli
Councilmember Tom Ivy
Vice Mayor Hilary Hodge
Mayor Jan Arbuckle

AGENDA APPROVAL -
Motion made to approve the agenda as submitted by Vice Mayor Hodge, Seconded by Councilmember Branstrom.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember Ivy, Vice Mayor Hodge, Mayor Arbuckle

ADMINISTRATIVE

1. Introduction of Ordinance No. 826 Imposing a 3/8-cent (0.375%) Transaction and Use Tax associated
CEQA: Not a Project.

Recommendation: That Council Introduce the attached Ordinance No. 826, waive full reading, and read by title only.

Tim Kiser, City Manager, gave presentation to the Council.

Public Comment: Matthew Coulter
Motion made to introduce the attached Ordinance No. 826, waive full reading, and read by title only by Councilmember Branstrom, Seconded by Vice Mayor Hodge.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember

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Item # 2.

City of Grass Valley, CA MINUTES April 02, 2024
Ivy, Vice Mayor Hodge, Mayor Arbuckle

ADJOURN
Brief reports: Lou Contour has passed away & WM rate have been received.

Meeting adjourned at 5:09 pm
____________________________ __________________________ Jan Arbuckle, Mayor Taylor Day, City Clerk
Adopted on: ______________

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Item # 2.
1 Taylor Day
From: WIRELESS CALLER - Voicemail box 8880 <[email protected]> Sent: Tuesday, April 2, 2024 4:59 PM
To: Public Comments
Subject: 2 2024 4:56 PM
Attachments: 1712102182-000022fb.mp3

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You received a new voicemail message

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New voicemail message
Time: Tuesday, April 2 2024 4:56 PM
From: (
Duration: 1 minute 32 seconds
Voicemail box: 8880
Transcript:

Hi, this is Matthew Coulter. I wasn't notified of this meeting, which is a violation of the Brown ACH that wasn't notified of this special meeting. You guys just chomping at the bit to get this tax money is squander. It'd be really interesting to follow up and see what happens with it and who's put in charge of watching what you do with it. If it's going to be the former mayor or your friends or people that are directly profiting from the taxpayers of Grass Valley through favoritism crony. Yes. And just direct corruption that's going on at City Hall. Hopefully, some things will change this November. Until then, we'll just have to write it out with the city council. That has been just absolutely outrageous to come out of covered. And just spend a huge amount of money on the mall downtown. You have my drawing and Creek, from parking lot projects, You have just staff repelled by all over the place up on Ridge Road, Go to anything that's been, that you guys have approved in the last four years, and look at it. The housing developments, the different things, see what's going on

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Item # 2.
2 there. You can't even use the sidewalks or just covering ****. Please do your jobs, and stop being gluttons. Thank you.

Rate this transcript's accuracy
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Item # 2.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Canvass and Statement of Results for the March 5, 2024 Primary Municipal Election.

CEQA: Not a Project
Recommendation: Adopt Resolution No. 2024-12 finding and declaring the results of the March 5, 2024 Primary Municipal Election.

Prepared by: Taylor Day, Deputy City Manager
Council Meeting Date: 4/9/2024 Date Prepared: 4/2/2024
Agenda: Consent
Background Information: The official canvass and certified results of the March 5, 2024 Primary Municipal Election for Measure B a Transaction and Use Tax has passed by a 50% + 1 voted and as shown in attached Exhibit “A”.

Fiscal Impact: N/A
Funds Available: N/A Account #: N/A
Reviewed by: __ City Manager
Attachments:
 Statement of Results of Election
 Page # 12 Nevada County General Elections Official Results Report

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Item # 3.
246774.1
RESOLUTION NO. 2024-12

RESOLUTION OF THE COUNCIL OF THE CITY OF GRASS VALLEY, RECITING THE FACT OF THE PRIMARY MUNICIPAL ELECTION ON MARCH 5, 2024 DECLARING RESULTS AND SUCH OTHER

MATTERS AS PROVIDED BY LAW
WHEREAS, a Primary Municipal election was held on March 5, 2024 in the County of Nevada by the County Clerk in accordance with the Grass Valley City Charter and California State Law concerning election matters; and
WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, from and manner as required by the provisions of the of the Elections code of the state of California and Grass Valley City Charter in concerning holding of elections;
WHEREAS, the County Clerk did conduct said election, canvass the returns and certify the Statement of Results of the Election on March 27, 2024 of said Primary Municipal Election.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF GRASS VALLEY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That the whole number of votes by mail voter ballots cast in the City was 4,067, the whole number of Early Voting ballots cast in the City was 90, the whole number of Election Day Voting ballots cast in the City was 225, and the whole number of provisional ballots cast in the City was 18, making a total of 4,400 ballots cast in the City.

SECTION 2. That the measure voted upon at the election is as follows: MEASURE B SECTION 3. That the number of votes given at each precinct and the number of votes given in the City for and against the measure were as listed in Exhibit “A” SECTION 4. The City Council does declare and determine that as a result of the election a majority of the voters voting on the measure relating to a Transaction and Use Tax did vote in favor of it, and that the measure was carried, and shall be deemed adopted and ratified.

SECTION 5. The Clerk shall enter on the records of the City Council of the City, a statement of results of the election, showing: (1) The whole number of ballots cast in the City; (2) The measure voted upon; (3) the number of votes given at each precinct for and against each measure; (4) The total number of votes given for and against the measure.

SECTION 6. That the City Clerk shall certify to the passage and adoption of this resolution and enter into the book of original resolutions.

Adopted as a resolution of the Council of the City of Grass Valley at a meeting thereof held on the 9th, day of April 2024, by the following vote:

AYES:

NOES:

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Item # 3.
246774.1
ABSENT:

ABSTAINING:
__________________________
Jan Arbuckle, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ___________________________ Taylor Day, City Clerk Michael Colantuono, City Attorney

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Item # 3.

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Item # 3.

Nevada County
March 5, 2024 Presidential Primary
3/5/2024

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Official Results
Registered Voters
39579 of 74321 = 53.25%
Precincts Reporting
108 of 108 = 100.00%
Cumulative Results Report
Official Results
Run Time
Run Date
9:44 AM
03/27/2024
Measure A - Nonpartisan - Vote Yes or No
Precincts
Counted Total Percent
5 5 100.00%
Voters
Ballots Registered Percent
916 1,961 46.71%
Choice Party Vote By Mail Voting Early Voting Election Day Voting Provisional Voting Total Yes 586 71.46% 6 66.67% 45 78.95% 6 100.00% 643 72.09%
No 234 28.54% 3 33.33% 12 21.05% 0 0.00% 249 27.91%
Cast Votes: 820 100.00% 9 100.00% 57 100.00% 6 100.00% 892 100.00% Undervotes: 21 0 2 0 23
Overvotes: 1 0 0 0 1
Measure B - Nonpartisan - Vote Yes or No
Precincts
Counted Total Percent
13 13 100.00%
Voters
Ballots Registered Percent
4,400 8,291 53.07%
Choice Party Vote By Mail Voting Early Voting Election Day Voting Provisional Voting Total Yes 2,014 51.22% 26 30.23% 87 39.91% 10 55.56% 2,137 50.24% No 1,918 48.78% 60 69.77% 131 60.09% 8 44.44% 2,117 49.76% Cast Votes: 3,932 100.00% 86 100.00% 218 100.00% 18 100.00% 4,254 100.00% Undervotes: 134 4 6 0 144
Overvotes: 1 0 1 0 2

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Item # 3.

City of Grass Valley
City Council
Agenda Action Sheet
Title: California Department of Tax and Fee Administration Agreements to implement the Local Sales and Use Tas Approved under Measure B.

Prepared by: Taylor Day, Deputy City Manager I
Council Meeting Date: 04/09/2024 Date Prepared: 04/04/2024 Agenda: Consent
Background Information: With the adoption of Ordinance No. 826 which will implement a General Transaction and Used Tax approved by the votes under Measure B, it will then be administered by the California Department of Tax and Fee Administration (CDTFA). With the implementation of the updated local sales and use tax it will also require the City to execute agreements with the CDTFA. The agreements are provided in the State’s format and language and not subject to change without State approval. The proposed resolution 2024-13 authorizes the City Manager to sign the necessary agreements with the State related to the implementation of the new local sales tax. The proposed resolution 2024-14 authorizes the City Manager, Finance Director, and HDL to examine the Sales or Transactions and Use Tax Records and allows for the City Manager and Finance Director to designate other in writing to the CDTFA for others to examine.

Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #5 – High Performance Government and Quality Service.

Fiscal Impact: N/A Funds Available: N/A Account #: N/A
Reviewed by: Tim Kiser, City Manager
Attachments:
 R2024-13
o Agreement for Preparation to Administer and Operate City’s Transaction and Use Tax Ordinance
o Agreement for State Administration of City Transactions and Use Tax  R2024-14
o Designation Letter

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Item # 4.
246774.1
RESOLUTION NO. 2024-13

RESOLUTION OF THE COUNCIL OF THE CITY OF GRASS VALLEY AUTHORIZING CITY MANAGER TO

EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX.

WHEREAS, on April 9th, 2024, the City Council approved Ordinance No. 826 amending the City Municipal Code and providing for a local transactions and use tax; and WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and WHEREAS, the Department requires that the City Council authorize the agreements; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Grass Valley that the “Preparatory Agreement” attached as Exhibit “A” and the “Administrative Agreement” attached as Exhibit “B” are hereby approved and the City Manager is hereby authorized to execute each agreement.

Adopted as a resolution of the Council of the City of Grass Valley at a meeting thereof held on the 9th, day of April 2024, by the following vote:

AYES:

NOES:

ABSENT:

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Item # 4.
1 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE

CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Grass Valley, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:

1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.

2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.

3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.

4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.

5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.

6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)

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Item # 4.
2 7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:

California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:

City of Grass Valley
Attn: Tim Kiser, City Manager
125 East Main St.

Grass Valley, CA 95945

8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.

CITY OF GRASS VALLEY CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Tim Kiser
(Typed Name)
City Manager
(Title)
(Rev. 6/23)

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Item # 4.

AGREEMENT FOR STATE ADMINISTRATION

OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Grass Valley has adopted, and the voters of the City of Grass Valley (hereafter called “City”) have approved by the required majority vote, the City of Grass Valley Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:

ARTICLE I

DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:

1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9 and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.

2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No.826, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.

ARTICLE II

ADMINISTRATION AND COLLECTION

OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.

Page 23 ends

Item # 4.
(Rev. 6/23) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.

C. Transmittal of money.

1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.

2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.

3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.

D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.

E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.

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Item # 4.
(Rev. 6/23) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.

G. Records of the Department.

When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.

H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.

ARTICLE III

ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:

1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the

Page 25 ends

Item # 4.
(Rev. 6/23) 4
Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.

2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.

B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.

ARTICLE IV

COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.

ARTICLE V

MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.

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Item # 4.
(Rev. 6/23) 5
Communications and notices to be sent to the Department shall be addressed to:

California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:

City of Grass Valley
Attn: Tim Kiser, City Manager
125 East Main St.

Grass Valley, CA 95945
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.

B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on July 1st, 2024. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.

C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.

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Item # 4.
(Rev. 6/23) 6

ARTICLE VI

ADMINISTRATION OF TAXES IF THE

ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.

1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.

2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and nonappealable.

B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:

1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.

2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.

3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.

4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and

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Item # 4.
(Rev. 6/23) 7
developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.

5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.

6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.

7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.

CITY OF GRASS VALLEY CALIFORNIA STATE DEPARTMENT OF

TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Tim Kiser
(Typed Name)
City Manager
(Title)

Page 29 ends

Item # 4.
351756.1
RESOLUTION NO. 2024 - 14
A Resolution of City of Grass Valley City Council Authorizing Examination of Sales or Transactions and Use Taxes Records
WHEREAS, pursuant to Ordinance Number 826 of City of Grass Valley (City), and Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and WHEREAS, the City Council of the City deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRASS VALLEY HEREBY RESOLVES AS FOLLOWS:

SECTION 1. That the City Manager and Finance Director, or other officer or employee of the City designated in writing by the City Manager and Finance Director to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.

SECTION 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to that contract.

SECTION 3. That the HDL Companies (HDL) is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all the following conditions, which are also included in the contract between the City and HDL:

A) Has an existing contract with the City to examine those sales or transactions and use tax records; and
B) Is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information; and C) Is prohibited by that contract from performing consulting services for a retailer during the term of that contract; and
D) Is prohibited by that contract from retaining the information contained in, or

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Item # 4.
351756.1
derived from those sales or transactions and use tax records, after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to the contract between the City and the Department.

SECTION 3. That this resolution supersedes all prior resolutions of the City Council of the City adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

Adopted as a resolution of the City Council of the City of Grass Valley at a meeting thereof held on the 9th, day of April 2024, by the following vote:

AYES:

NOES:

ABSENT:

Page 31 ends

Item # 4.

CITY OF GRASS VALLEY

ADMINISTRATION
125 East Main Street
Grass Valley, CA 95945
(530)274-4310
April 10, 2024
CA Department of Tax and Fee Administration
Local Revenue Branch
Attn: Warrant Desk
450 N Street, MIC: 27
Sacramento, CA 95814
Subject: City of Grass Valley – Jurisdiction Code No. 29031 Authorization to Review Confidential Sales and Use Tax and Transactions and Use Tax Information per Section 7056 of the Revenue and Taxation Code.

Dear Ms. Anh Huang:

Resolution No. 2024-13, Section 1, authorizes the City Manager and Finance Director to designate in writing to the CA Department of Tax and Fee Administration other officers and/or employees of the jurisdiction with authority to receive and examine sales and use tax records for the jurisdiction.

Accordingly, City Manager, Finance Director, and HDL Companies for the City of Grass Valley is hereby authorized to receive and review sales or transactions and use tax records for the City of Grass Valley from the CA Department of Tax and Fee Administration.

Sincerely,
_______________________________________________
Tim Kiser, City Manager
Council Members
Jan Arbuckle, Mayor
Hilary Hodge, Vice Mayor
Bob Branstrom
Haven Caravelli
Tom Ivy

Page 32 ends

Item # 4.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Resolution No. 2024-16 Temporarily Decreasing the Additional Business Taxes Collected from Cannabis Businesses within the City of Grass Valey for High Potency Cannabis and Cannabis Products.

CEQA: Not a Project.

Prepared by: Timothy M. Kiser, City Manager
Council Meeting Date: April 9, 2024 Date Prepared: April 1, 2024 Agenda: Consent
Background Information: On February 9, 2024, the City of Grass Valley received correspondence from Grass Valley Provisions, LLC (Provisions), highlighting the adverse effects of the City’s implemented Tetrahydrocannabinol (THC) and sweetened cannabis beverages taxes. The tangible impact of this THC tax becomes apparent when comparing customer receipts between Grass Valley and neighboring Nevada City. For instance, locally manufactured cannabis cartridges containing 1 gram of 90.13% THC cannabis oil are priced at around $45. In contrast, the same item purchased in Nevada City amounts to $57.58, including all taxes, whereas in Grass Valley, it totals $95.60.

This stark contrast illustrates how the current tax structure places Provisions at a competitive disadvantage against neighboring retailers and illicit delivery services, which operate without tax obligations. Ultimately, these tax burdens will inevitably drive Provisions out of business if left unchanged.

On March 26, 2024, the City Council examined the draft resolution and directed staff to extend the duration of the temporary high-potency cannabis and cannabis product tax from two years to five years. The attached Resolution for Council consideration includes a provision suspending the supplementary THC tax for the entire five-year period.

Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #5 – High Performance Government and Quality Service.

Fiscal Impact: The exact fiscal impact on this item is unknown due to the discrepancy in price difference between the current THC extra tax and the ability to sell products.

Funds Available: N/A Account #: N/A
Reviewed by: Tim Kiser, City Manager
Attachments:
 Letter from Grass Valley Provisions
 Resolution No. 2024-16

Page 33 ends

Item # 5.
347391.2
RESOLUTION NO. 2024-16

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRASS VALLEY

TEMPORARILY DECREASING THE ADDITIONAL BUSINESS TAXES

COLLECTED FROM CANNABIS BUSINESSES OPERATING WITHIN THE CITY

OF GRASS VALLEY FOR HIGH POTENCY CANNABIS PRODUCTS
WHEREAS, section 5.06.030(D) of the Grass Valley Municipal Code imposes on each cannabis business in the City additional taxes of (1) up to 1% of gross receipts from high potency cannabis and each high potency cannabis product cultivated, manufactured, or sold by the taxpayer, multiplied by the percent of tetrahydrocannabinol (THC) content of the product above 17%, and (2) 20% of gross receipts from sweetened cannabis beverages;
WHEREAS, the Grass Valley City Council desires to exercise its authority under section 5.06.030(E) of the Grass Valley Municipal Code to temporarily suspend the imposition and collection of the aforementioned taxes from cannabis businesses operating within the City while this resolution is in effect; WHEREAS, voter approval is not required for these changes to go into effect, as there will be no increase in any rate nor any amount levied on any cannabis businesses within the meaning of Government Code section 53750, subdivision (h); and WHEREAS, the Grass Valley City Council desires this resolution to remain in effect through April 9th, 2029.

NOW THEREFORE BE IT RESOLVED by the City of Grass Valley as follows:

1. Recitals. The foregoing recitals are true and correct and incorporated herein.

2. CEQA. The adoption of this resolution is exempt from review under the California Environmental Quality Act (CEQA) (Public Resources Code, § 21000, et seq.) pursuant to CEQA Guidelines (Title 14 of the California Code of Regulations, § 15000, et seq.) sections 15378(b) and 15061(b)(3) as this is a government fiscal activity which does not commit to any specific project which may result in a potentially significant physical impact to the environment.

3. Cannabis Business Taxes. The taxes imposed by section 5.06.030(D) of the Grass Valley Municipal Code of (1) up to 1% of gross receipts from high potency cannabis and each high potency cannabis product cultivated, manufactured, or sold by the taxpayer multiplied by the percent of tetrahydrocannabinol (THC) content of the product above 17% and (2) 20% of gross receipts from sweetened cannabis beverages are hereby set at 0 percent while this resolution is in effect.

4. Duration. This resolution shall continue in force and effect until April 9th, 2029 unless sooner modified or repealed by the City Council.

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Item # 5.
347391.2

5. Effective Date. This resolution shall take effect immediately upon adoption.

6. Certification. The Grass Valley City Clerk shall attest to the passage and adoption of this resolution and its approval by the City Council and shall cause the same to be listed in the records of the City.

ADOPTED as a resolution by the City Council of the City of Grass Valley at a regular meeting thereof held on the 9
th day of April, 2024 by the following vote:

AYES:

NOES:

ABSTAINS:

ABSENT:
______________________________
Jan Arbuckle, Mayor
ATTEST:
_____________________________
Taylor Day, City Clerk
APPROVED AS TO FORM:
_____________________________
Michael G. Colantuono, City Attorney

Page 35 ends

Item # 5.

February 9, 2024
Tim Kiser
125 E Main Street
Grass Valley, CA 95945
RE: THC TAX ORDINANCE NO. 807
Dear Mr. Kiser,
I write to report some exciting news - Grass Valley Provisions is close to opening its cannabis storefront in the City of Grass Valley, a project our team has dedicated countless hours to accomplish. The timeline is currently weather dependent, but I’m told we should be finalized in four to six weeks. I will keep you updated on as we near completion.

As you know, the City of Grass Valley has a unique cannabis tax structure. For dispensaries, this includes 4% of gross receipts, as well as an additional tax on high potency cannabis flower, products, and beverages. This additional tax is explained in Chapter 5.06.030 - Cannabis business tax:

1. An additional tax of up to one percent (1%) of the gross receipts from high potency cannabis and each high potency cannabis product cultivated, manufactured or sold by the taxpayer, multiplied by the percent of tetrahydrocannabinol (THC) content of the product above 17%; and,

2. An additional tax of 20% of gross receipts from sweetened cannabis beverages.

The impact of this THC based tax is clear when examining the difference in a customer’s receipt should they purchase a cannabis product in Grass Valley versus in neighboring Nevada City.

Locally produced cannabis cartridges containing 1 gram of 90.13% THC cannabis oil retail for around $45. This single item when purchased in Nevada City would come to $57.58 including all applicable taxes. The same item if purchased in Grass Valley would come to $95.60.

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Item # 5.

As demonstrated, under this tax structure, Grass Valley Provisions would not be able to compete with surrounding retail operations, or the illicit delivery services and ‘black-market’ operators who pay no taxes whatsoever. The impacts of this tax will ultimately force Grass Valley Provisions out of business. As such, we respectfully request that the City of Grass Valley act to remove the above-mentioned tax language, specifically Section D of Chapter 5.06.030, and allow Grass Valley Provisions the opportunity to compete for customers in the area.

Grass Valley Provisions recognizes the opportunity that revenue from cannabis taxes present to support community programs and crucial services such as law enforcement, support for the unhoused, and youth programs. To aid this vision, we propose to donate $10,000 to the City of Grass Valley, for the first two years of our operations, to be used exclusively for youth programs.

We appreciate the consideration of the City and request this matter be place on the agenda for discussion at the next available City Council meeting.

Sincerely,
Cameron Brady
Chief Legal Officer

Page 37 ends

Item # 5.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Resolution No. 2024-15 20% Water Conservation from all City Customers Due to inoperable Drum and South Yuba Canals
CEQA: Not a Project.

Recommendation: That Council adopt Resolution No. 2024-15 requesting all City Water Customers voluntarily conserve 20% of their normal water usage for the next 90 days.

Prepared by: Timothy M. Kiser, City Manager
Council Meeting Date: April 9, 2024 Date Prepared: April 1, 2024 Agenda: Consent
Background Information: On March 27, 2024, Nevada Irrigation District (NID) adopted a resolution declaring a water shortage emergency related to Pacific Gas and Electric Company’s (PG&E’s) unplanned outages on the South Yuba Canal and Spaulding Reservoir.

In February and March 2024 respectively, PG&E notified NID that a portion of the South Yuba Canal and Drum Canal were rendered inoperable due to a collapse and powerhouse failure. These two combined failures have rendered it impossible to move water into the Drum and South Yuba Canals. Both canals serve as the delivery conduit to provide water to thousands of customers in the NID service area, including raw water to the City of Grass Valley’s Water Treatment plant. Therefore, NID has deemed it necessary to implement water conservation for all District customers. At this point, NID is only recommending voluntary conservation measures and the prohibition of new or increased raw water services.

As the City receives raw water from NID, staff recommends City Council adopt the attached resolution requesting City water user customers to voluntarily conserve 20% of their normal water usage for the next 90 days.

Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #5 – High Performance Government and Quality Service.

Fiscal Impact: The exact fiscal impact on this item is unknown due to the discrepancy in price difference between the current THC extra tax and the ability to sell products.

Funds Available: N/A Account #: N/A
Reviewed by: Tim Kiser, City Manager
Attachments: - Resolution No. 2024-15

Page 38 ends

Item # 6.

RESOLUTION NO. 2024-15

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRASS VALLEY

REQUESTING ALL CITY WATER CUSTOMERS VOLUNTARILY CONSERVE 20% OF THEIR NORMAL WATER USAGE
WHEREAS, Nevada Irrigation District (NID) contracts with the City to provide raw water to the City of Grass Valley’s Water Treatment Plant; WHEREAS, the Grass Valley City Council desires to exercise its authority under section 5.06.030(E) of the Grass Valley Municipal Code to temporarily suspend the imposition and collection of the aforementioned taxes from cannabis businesses operating within the City while this resolution is in effect; WHEREAS, the South Yuba Canal, and Drum Canal are owned and operated by Pacific Gas and Electric Company (PG&E), but are operated in coordination with NID’s water storage and distribution facilities;
WHEREAS, in February and March 2024 respectively, PG&E notified NID that a portion of the South Yuba Canal and Drum Canal were rendered inoperable for water conveyance until repaired;
WHEREAS, if the Drum and South Yuba Canal are not repaired by the June 8, 2024 target date, the NID’s limited water storage supplies may be exhausted and may not be able to fully serve the water needs and demands of water users; WHEREAS, the Grass Valley City Council desires this resolution to remain in effect through July 8
th, 2024 (90 days).

NOW THEREFORE BE IT RESOLVED by the City of Grass Valley as follows:

1. Recitals. The foregoing recitals are true and correct and incorporated herein.

2. The City Council finds the failure of Drum and South Yuba Canals has created an immediate need to take action to reduce water usage to conserve NID’s limited water storage.

3. The City Council requests all City Water Customers voluntarily conserve 205 of their normal water usage over the next 90 days.

4. Duration. This resolution shall continue in force and effect until July 8th, 2024 unless sooner modified or repealed by the City Council.

5. Effective Date. This resolution shall take effect immediately upon adoption.

6. Certification. The Grass Valley City Clerk shall attest to the passage and adoption of this resolution and its approval by the City Council and shall cause the same

Page 39 ends

Item # 6.
to be listed in the records of the City.

ADOPTED as a resolution by the City Council of the City of Grass Valley at a regular meeting thereof held on the 9
th day of April, 2024 by the following vote:

AYES:

NOES:

ABSTAINS:

Page 40 ends

Item # 6.

City of Grass Valley
City Council
Agenda Action Sheet
Title: 2024 Annual Measure E Street Rehabilitation Project – Authorization to Award Contract
CEQA: Categorically Exempt – Section 15301 “Existing Facilities” Recommendation: That Council 1) award a contract for the 2024 Annual Measure E Street Rehabilitation Project to Consolidated Engineering, Inc., 2) authorize the Mayor to execute the construction contract, subject to legal review and, 3) authorize the City Engineer to approve construction change orders for up to 10% of the contract amount.

Prepared by: Bjorn P. Jones, PE, City Engineer
Council Meeting Date: 4/9/2024 Date Prepared: 4/4/2024
Agenda: Consent
Background Information: The 2024 Annual Measure E Street Rehabilitation Project involves the pavement resurfacing of North Auburn St, North Church St, North School St, Finnie St, Chester St, Ivy St, Linden Ave, Alta Vista Dr and portions of Alta St. Project work includes pavement grinding, overlay and replacements, utility adjustments, markings, curb ramp and drainage improvements.

Bids were opened on March 21, 2024, and seven bids were received. A bid summary is attached. Staff reviewed the low bid of $753,799.00 submitted by Consolidated Engineering, Inc. and determined the bid to be complete and responsive.

Staff recommends that Council award the construction contract to Consolidated Engineering, Inc., in the amount of $753,799.00; authorize the Mayor to execute the construction contract, subject to legal review and subject to the bid protest period; and authorize the City Engineer to approve construction change orders up to 10% of the contract amount.

Council Goals/Objectives: The 2024 Annual Measure E Street Rehabilitation Project executes portions of work tasks towards achieving/maintaining Strategic Plan Goal – City Infrastructure Investment
Fiscal Impact: The 2024 Annual Measure E Street Rehabilitation Project was fully funded in the FY 23/24 CIP Budget with Measure E funds.

Funds Available: Yes Account #: 300-406-63850
Reviewed by: ____ City Manager Attachment: Bid Summary

Page 41 ends

Item # 7.

H:\DESMGMNT\23-09 2024 Measure E Street Rehab\700 Construction\710 Bid Docs\Bid Summary.docx 2024 MEASURE E STREET REHAB PROJECT
PROJECT #23-09

BID SUMMARY
Date: 3/21/2024 ; 3:30 p.m. Engineer’s Estimate:
$900,000
BIDDER DATE/TIME REC’VD AMOUNT
All-American Construction, Inc. 3/21/2024
3:02 PM $764,044.00
B+M Builder’s Inc. 3/21/2024
2:57PM $889,600.00
Central Valley Engineering & Asphalt, Inc. 3/21/2024
3:28PM $909,420.00
M’Guire Hester 3/21/2024
3:25PM $979,190.00
Consolidated Engineering Inc. 3/21/2024
3:24PM $753,799.00
JV Lucas Paving 3/21/2024
3:19PM $878,020.00
Dutch Contracting Inc. 3/21/2024
3:20PM $1,093,248.00
* Apparent Low Bidder

Page 42 ends

Item # 7.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Health and Safety Code Section 13146.4 Report on Fire Inspections CEQA: Not a project
Recommendation: That Council adopt Resolution 2024-15 which accepts the Grass Valley Fire Department report pursuant to Health and Safety Code Section 13146.4 annual inspections for 2022 and 2023
Prepared by: Darrin Hutchins- Fire Marshal
Council Meeting Date: 04/09/2024 Date Prepared: 04/03/2024 Agenda: Consent
Background Information: Health and Safety Code (HSC) sections 13146.2 and 13146.3 require fire departments to conduct inspections of specific occupancies once a year.

HSC section 13146.4 then requires those fire departments to report annually to the City Council on its compliance with those sections. Appendix1, attached to this staff report, details the Grass Valley Fire Department’s 2023 inspections as required by HSC 13146.4. Appendix 2, attached to this staff report, details the Grass Valley Fire Department’s 2022 compliance as required by HSC 13146.4. The 2022 reporting was overlooked due to cancelled meetings while under Declaration of Emergency for winter storms in 2022.

Council Goals/Objectives: Exceptional Public Safety consistent with the City of Grass Valley Strategic Plan
Fiscal Impact: N/A
Funds Available: N/A Account #: N/A
Reviewed by:

Attachments: Resolution 2024-15 and Appendixes 1 and 2.

Page 43 ends

Item # 8.
1 RESOLUTION NO. 2024-15

A RESOLUTION OF THE COUNCIL OF THE CITY OF GRASS VALLEY,

CALIFORNIA ACKNOWLEDGING RECEIPT OF A REPORT MADE BY THE FIRE

CHIEF OF THE GRASS VALLEY FIRE DEPARTMENT REGARDING THE

INSPECTION OF CERTAIN OCCUPANCIES REQUIRED TO PERFORM

ANNUAL INSPECTIONS IN SUCH OCCUPANCIES PURSUANT TO SECTIONS 13146.2 AND 13146.3 OF THE CALIFORNIA HEALTH AND SAFETY CODE.

WHEREAS, California Health & Safety Code Section 13146.4 was added in 2018, and became effective on September 27, 2018; and,
WHEREAS, California Health & Safety Code Sections 13146.2 and 13146.3 requires all fire departments, including the Grass Valley Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential care facilities for compliance with building standards, as provided and, WHEREAS, California Health & Safety Code Section 13146.2 requires all fire departments, including the Grass Valley Fire Department, that provide fire protection services to report annually to its administering authority on its compliance with Sections 13146.2 and 13146.3 and, WHEREAS, the Council of the City of Grass Valley intends this Resolution to fulfill the requirements of the California Health & Safety Code regarding acknowledgment of the Grass Valley Fire Department’s compliance with California Health and Safety Code Sections 13146.2 and 13146.3.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Grass Valley that said Council expressly acknowledges the measure of compliance of the Grass Valley Fire Department with California Health and Safety Code Sections 13146.2 and 13146.3 in the area encompassed by the City of Grass Valley, as follows for 2023 “Appendix 1”:

A. EDUCATIONAL GROUP E OCCUPANCIES:

Educational Group E Occupancies are generally those public and private schools, used by more than six (6) persons at any one time for educational purposes through the 12th grade. Within the City of Grass Valley, there lie eight (12) Group E Occupancies, buildings, structures and/or facilities.

During calendar year 2023, the Grass Valley Fire Department performed the annual inspection of twelve (12) Group E Occupancies, buildings, structures and/or facilities. This is an inspection rate of 100% for this reporting period.

B. INSTITUTIONAL GROUP I OCCUPANCIES:

Institutional Group I Occupancies, for the purposes of this resolution, are generally those occupanciesin which people, cared for or living in a supervised environment and having physical limitations because of health or age are harbored for medical treatment or other care or treatment. Within the City of Grass Valley, there lies one (1) Group I occupancy, building, structure, and/or facility.

During calendar year 2023, the Grass Valley Fire Department performed the annual inspection of one (1) Group I Occupancy, building, structure and/or facility. This is an inspection rate of 100% for this reporting period.

C. RESIDENTIAL GROUP R OCCUPANCIES:

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Item # 8.
2 Residential Group R Occupancies, for the purposes of this resolution, are generally those occupancies containing sleeping units, and include hotels, motels, apartments (three units or more), etc. as well as other residential occupancies (including eleven (11) residential care facilities elderly, seven (7) residential care facilities elderly with memory care facilities, one (1) transitional housing facility). These residential care facilities have a number of different sub-classifications, and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory or bedridden.

During calendar year 2023, the Grass Valley Fire Department performed the annual inspection of eleven (11) of eleven (11) R-2.1 RCFE facilities (100%), seven (7) of seven (7) R-2.1 / I-2 RCFE with memory care facilities (100%), one (1) of one (1) R-2.1 / R-1 transitional housing facility (100%), eight (8) of eight (8) R-1 hotel/motel facilities (100%), and one hundred forty-five (145) of one hundred forty-six (146) R-2 apartment buildings (99%) resulting in an overall inspection rate of 99% for the reporting period.

As follows for 2022 “Appendix 2”:

D. EDUCATIONAL GROUP E OCCUPANCIES:

Educational Group E Occupancies are generally those public and private schools, used by more than six (6) persons at any one time for educational purposes through the 12th grade. Within the City of Grass Valley, there lie nine (9) Group E Occupancies, buildings, structures and/or facilities.

During calendar year 2022, the Grass Valley Fire Department performed the annual inspection of eight (8) Group E Occupancies, buildings, structures and/or facilities. This is an inspection rate of 89% for this reporting period.

E. INSTITUTIONAL GROUP I OCCUPANCIES:

Institutional Group I Occupancies, for the purposes of this resolution, are generally those occupancies in which people, cared for or living in a supervised environment and having physical limitations because of health or age are harbored for medical treatment or other care or treatment. Within the City of Grass Valley, there currently lies zero (0) standalone Group I occupancies, buildings, structures, and/or facilities.

F. RESIDENTIAL GROUP R OCCUPANCIES:

Residential Group R Occupancies, for the purposes of this resolution, are generally those occupancies containing sleeping units, and include hotels, motels, apartments (three units or more), etc. as well as other residential occupancies (including twelve (12) residential care facilities elderly and seven (7) residential care facilities elderly with memory care facilities. These residential care facilities have a number of different subclassifications, and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory or bedridden.

During calendar year 2022, the Grass Valley Fire Department performed the annual inspection of twelve (12) of twelve (12) R-2.1 RCFE facilities (100%), seven (7) of seven (7) R-2.1 / I-2 RCFE with memory care facilities (100%), eight (8) of eight (8) R-1 hotel/motel facilities (100%), and one hundred forty-three (143) of one hundred forty-three (143) R-2 apartment buildings (100%) resulting in an overall inspection rate of 100% for the reporting period.

Adopted as a resolution of the City Council of the City of Grass Valley at a meeting thereof held on the 9th, day of April 2024, by the following vote:

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Item # 8.
3 AYES:

NOES:

ABSENT:

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Item # 8.

APPENDIX 1
2023
EDUCATIONAL GROUP E OCCUPANCIES:

Educational Group E Occupancies are generally those public and private schools, used by more than six (6) persons at any one time for educational purposes through the 12th grade. Within the City of Grass Valley, there lie twelve (12) Group E Occupancies, buildings, structures and/or facilities.

INSTITUTIONAL GROUP I OCCUPANCIES:

Institutional Group I Occupancies, for the purposes of this resolution, are generally those occupancies in which people, cared for or living in a supervised environment and having physical limitations because of health or age are harbored for medical treatment or other care or treatment. Within the City of Grass Valley, there lies one (1) Group I occupancy, building, structure, and/or facility.

RESIDENTIAL GROUP R OCCUPANCIES:

Residential Group R Occupancies, for the purposes of this resolution, are generally those occupancies containing sleeping units, and include hotels, motels, apartments (three units or more), etc. as well as other residential occupancies (including eleven (11) residential care facilities elderly, seven (7) residential care facilities elderly with memory care facilities, one (1) transitional housing facility). These residential care facilities have a number of different sub-classifications,

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Item # 8.

APPENDIX 1
2023
and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be nonambulatory or bedridden.

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Item # 8.

APPENDIX 2
2022
EDUCATIONAL GROUP E OCCUPANCIES:

Educational Group E Occupancies are generally those public and private schools, used by more than six (6) persons at any one time for educational purposes through the 12th grade. Within the City of Grass Valley, there lie nine (9) Group E Occupancies, buildings, structures and/or facilities.

INSTITUTIONAL GROUP I OCCUPANCIES:

Institutional Group I Occupancies, for the purposes of this resolution, are generally those occupancies in which people, cared for or living in a supervised environment and having physical limitations because of health or age are harbored for medical treatment or other care or treatment. Within the City of Grass Valley, there currently lies zero (0) standalone Group I occupancies, buildings, structures, and/or facilities.

RESIDENTIAL GROUP R OCCUPANCIES:

Residential Group R Occupancies, for the purposes of this resolution, are generally those occupancies containing sleeping units, and include hotels, motels, apartments (three units or more), etc. as well as other residential occupancies (including twelve (12) residential care facilities elderly and seven (7) residential care facilities elderly with memory care facilities. These residential care facilities have a number of different sub-classifications, and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory or bedridden.

During calendar year 2022, the Grass Valley Fire Department performed the annual inspection of twelve (12) of twelve (12) R-2.1 RCFE facilities (100%), seven (7) of seven (7) R-2.1 / I-2 RCFE with

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Item # 8.

APPENDIX 2
2022
memory care facilities (100%), eight (8) of eight (8) R-1 hotel/motel facilities (100%), and one hundred forty-three (143) of one hundred forty-three (143) R-2 apartment buildings (100%) resulting in an overall inspection rate of 100% for the reporting period.

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Item # 8.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Appointment of Planning Commissioner
CEQA: Not a project
Recommendation: That Council approve the appointment of Jacob McDonald as Planning Commissioner for Mayor Arbuckle
Prepared by: Taylor Day, Deputy City Manager
Council Meeting Date: 4/9/2024 Date Prepared: 4/4/2024
Agenda: Consent
Background Information: By Council policy, each councilmember submits a candidate for appointment to the Planning Commission to the members of City Council for their approval and appointment. The terms of appointed Planning Commissioners coincide with the nominating Council Member’s term of office and may be changed by that city councilmember at any time during their term in office. Mayor Arbuckle has chosen Jacob McDonald to fill the position of her Planning Commissioner.

Council Goals/Objectives: N/A
Fiscal Impact: N/A
Funds Available: N/A Account #: N/A
Reviewed by: City Manager

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Item # 9.

City of Grass Valley
City Council
Agenda Action Sheet
Title: An amendment to an existing Memorandum of Understanding with Nevada County associated with the implementation of SB 1383 and other unfunded state mandates related to organic waste collection and recycling.

Recommendation: Authorize the Mayor to sign the amendment to the Memorandum of Understanding with Nevada County and direct the Finance Director to adjust the budget.

Prepared by: Zac Quentmeyer, Deputy Public Works Director Council Meeting Date: 04/09/2024 Date Prepared: 04/04/2024 Agenda: Consent
Background Information: At the City Council meetings on January 26, and February 23, 2021, staff provided updates on new state mandates related to the reduction of organic waste materials into landfills. Staff noted there would be a need for additional staff resources to both implement and enforce these programs.

On July 13, 2021, the City Council approved a Memorandum of Understanding with Nevada County to share in the costs of a consultant to help implement the required programs. At the same meeting the Council approved an agreement with R3 Consulting Group to provide the assistance. Each entity contributed $50,000. On June 30, 2022, the City Manager signed an amendment to the R3 contract to provide additional assistance and to the extend the term of the contract to June 20, 2024. This included an additional $35,000 contribution by the City and $90,000 from Nevada County. The City did apply $15,000 from a state grant towards the additional costs. Staff suggest an additional amendment contributing an additional $25,000 to continue efforts to implement SB 1383 requirements, $10,000 of which will come from grant funding.

Nevada County intends to contribute an additional $100,000 towards the agreement amendment. Staff continues to support the cooperative approach with Nevada County since this is the most effective way to implement the state mandates based on limited staff resources and limited technical expertise.

Council Goals/Objectives: There are no specific goals or objectives that support the implementation of this mandate, but the proposed approach is the most efficient manner to provide the government services needed to implement the programs.

Fiscal Impact: The previously signed amendment to the R3 contract will impact the General Funds by approximately $15,000.

Funds Available: Requires budget amendment Account #: 100-301-51110

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Item # 10.

Reviewed by: ___ City Manager ___ Finance Director
Attachments: Amendment #2 to Memorandum of Understanding with Nevada County and amendment #2 to R3 Contract

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Item # 10.

AMENDMENT NO. 2 TO

MEMORANDUM OF UNDERSTANDING BETWEEN THE COUNTY OF

NEVADA AND THE CITY OF GRASS VALLEY
THIS AMENDMENT is executed this 23rd day of April, 2024 by and between CITY OF GRASS VALLEY and COUNTY OF NEVADA. Said Amendment will amend the Memorandum of Understanding between the parties executed on July 13th, 2021 by Resolution No. 21-301.

WHEREAS, on June 14, 2022, per Resolution 22-266, the Board approved Amendment 1, which extended the MOU terms to June 30, 2024, and increased the Funding Allocation by $125,000. Allocating an additional $90,000 to Nevada County and $35,000 to the City of Grass Valley, for a total contract amount not to exceed $225,000 WHEREAS, the parties desire to amend their Memorandum of Understanding to allow for an extension to the term of the Agreement to June 30, 2026; and WHEREAS, the parties desire to increase the Funding Allocation by $125,000.

Allocating an additional $100,000 to Nevada County and $25,000 to the City of Grass Valley; and
NOW, THEREFORE, the parties hereto agree as follows:
. 1. That the termination date identified in Section 6 of the memorandum of understanding is hereby extended to June 30, 2026.

2. The Funding Allocation identified in Section 2 of the Memorandum of Understanding is hereby amended to increase the City allocation by $25,000 and the County allocation by $100,000, and that the total reimbursement from the City to the County shall not to exceed $95,000.

3. That in all other respects the prior agreement of the parties shall remain in full force and effect except as amended herein.

COUNTY OF NEVADA:

By:_____________________________ Date: ____________
Chair, of the Board of Supervisors
By:_____________________________
Attest: Clerk of the Board of Supervisors
CITY OF GRASS VALLEY:

By:_____________________________ Date: ____________

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Item # 10.

AMENDMENT NO. 2 TO CONTRACT WITH
R3 CONSULTING GROUP, INC.

THIS AMENDMENT is executed this 23rd day of April, 2024 by and between R3 CONSULTING GROUP, INC. and COUNTY OF NEVADA. Said Amendment will amend the agreement between the parties entitled SB1383 Program Development Services executed on July 13th, 2021 by Resolution No. 21-301.

WHEREAS, on June 14, 2022 per Resolution 22-266, the Board approved Amendment 1, which extended the contract terms to June 30, 2024, and increased the Funding Allocation by $125,000, for a total contract amount not to exceed $225,000 WHEREAS, the parties desire to amend their agreement to allow for an extension to the term of the Agreement to June 30, 2026; and
WHEREAS, the parties desire to increase the maximum contract price by $125,000, for a total contract amount not to exceed $350,000; and NOW, THEREFORE, the parties hereto agree as follows:
. 1. That the termination date identified in Section 3 of the Agreement is hereby extended to June 30, 2026.

2. The maximum contract price identified in Section 2 of the Agreement is hereby increased by $125,000, for a total contract amount not to exceed $350,000.

2. That in all other respects the prior agreement of the parties shall remain in full force and effect except as amended herein.

COUNTY OF NEVADA:

By:_____________________________ Date: ____________
Chair, of the Board of Supervisors
By:_____________________________
Attest: Clerk of the Board of Supervisors
CITY OF GRASS VALLEY:

By:_____________________________ Date: ____________
By:_____________________________
Attest: Deputy City Clerk

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Item # 10.

CONTRACTOR: R3 Consulting Group, Inc.

By:_____________________________ Date: ____________
Name: ____________________________ Title: _____________________________ By:_____________________________ Date: ____________
Name: ____________________________ Title: Secretary

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Item # 10.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Second Reading of Ordinance No. 826 Imposing a 3/8-cent (0.375%) Transaction and Use Tax for Fire Resiliency and Vegetation Management CEQA: Not a Project.

Recommendation: That Council hold a second reading, waive the full reading, by title only, and adopt Ordinance No. 826 known as the “2023 Grass Valley Transactions and Use Tax Ordinance”.

Prepared by: Timothy M. Kiser, City Manager
Council Meeting Date: April 9, 2024 Date Prepared: April 3, 2024 Agenda: Public Hearing
Background Information: On October 24th, 2023, the Grass Valley City Council unanimously passed Resolution No. 2023-62, setting in motion a decision for the community. The resolution called for an election on March 5, 2024, inviting citizens to consider a 3/8 percent general sales tax (a transactions and use tax) measure aimed at bolstering Fire Resiliency and Vegetation Management. This initiative, encompassed within Ordinance 826, known as the "2023 Grass Valley Transactions and Use Tax Ordinance," is the result of deliberation and community input. On February 13, 2024, City Council approved Resolution No. 2024-09 formalizing the Expenditure Plan for the general sales tax on the March 5, 2024 election ballot.

With the March 5, 2024 Election now certified by the Nevada County Elections that 3/8 percent general sales tax (a transactions and use tax) measure (Measure B) aimed at bolstering Fire Resiliency and Vegetation Management has passed the City needs to formally adopt Ordinance No. 826 - 2023 Grass Valley Transactions and Use Tax Ordinance. This Ordinance solidifies Measure B’s requirements, including a sunset clause of 7 years and annual audits, ensuring transparency and accountability in the allocation of resources. Moreover, the establishment of a citizen oversight committee (the “Independent Citizens’ Advisory Committee”) underscores the commitment to prudent stewardship of public funds. This commitment to transparency and accountability reflects the City Council's unwavering dedication to serving the best interests of the community.

On April 2, 2024, the City Council approved the first reading of the attached Ordinance No. 826. Staff is requesting the City Council to hold a second reading by title only and adopt Ordinance No. 826.

Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #5 – High Performance Government and Quality Service.

Fiscal Impact: There is no Fiscal Impact of improving the Ordinance. The 3/8 percent General Sales Tax passed in March, is estimated to generate $2.55 million annually for seven years.

Funds Available: Yes Account #: General Fund Reserves
Reviewed by: Tim Kiser, City Manager
Attachments: Ordinance 826

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Item # 11.
316754.4 1
ORDINANCE NO. 826

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRASS VALLEY IMPOSING A 3/8-CENT TRANSACTIONS AND

USE TAX FOR GENERAL GOVERNMENTAL USE TO BE

ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION, SUBJECT TO THE VOTER

APPROVAL
THE PEOPLE OF GRASS VALLEY, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. TITLE.

This ordinance shall be known as the 2023 Grass Valley Transactions and Use Tax Ordinance. The City of Grass Valley hereinafter shall be called “City.” This ordinance shall be applicable in the incorporated territory of the City.

SECTION 2. OPERATIVE DATE.
“Operative date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance.

SECTION 3 PURPOSE.

This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part

1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

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Item # 11.
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D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

SECTION 4. CONTRACT WITH STATE.

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

SECTION 5. TRANSACTIONS TAX RATE.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.375% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

SECTION 6. PLACE OF SALE.

For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

SECTION 7. USE TAX RATE.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 0.375% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

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SECTION 8. ADOPTION OF PROVISIONS OF STATE LAW.

Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

SECTION 9. LIMITATIONS ON ADOPTION OF STATE LAW AND
COLLECTION OF USETAXES.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

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B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

SECTION 10. PERMIT NOT REQUIRED.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.

SECTION 11. EXEMPTIONS AND EXCLUSIONS.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a

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Item # 11.
316754.4 5
declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

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5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

SECTION 12. TERM.

The tax imposed by this ordinance shall be effective until 7 years after it is first collected, unless sooner repealed by voters.

SECTION 13. AMENDMENTS.

All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

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316754.4 7
SECTION 14. INDEPENDENT OVERSIGHT; EXPENDITURE PLAN.

A. The City Council shall establish a five-member Independent Citizens’ Advisory Committee, which shall meet annually to review the expenditure of revenues generated by the tax imposed by this Ordinance and to make recommendations to the City Council regarding those expenditures. The City Council shall appoint committee members to one or ore terms of not more than 4 years each. The Committee shall meet publicly at least quarterly to review all revenues and expenditures of the transactions and use tax imposed by this Ordinance, review annual audit reports related to the tax, and make at least one written annual report to the City Council at a public meeting summarizing the Committee’s findings and including any appropriate recommendations. The minutes of the meetings of Independent Citizens’ Advisory Committee shall be provided to the City Council and placed on the next available regular City Council meeting agenda for informational purposes.

B. The City Council shall adopt after a noticed public hearing a plan to expend the proceeds of the tax imposed by this Ordinance. the Independent Citizens’ Advisory Committee shall review the plan at least annually and recommend any changes to the City Council which shall consider them in conjunction with the City’s annual budget. Once adopted, the City shall maintain the current plan on its website.

SECTION 15. AUDIT AND REVIEW.

The proceeds of the tax imposed by this Ordinance, as well as the expenditure thereof, shall be audited annually by an independent accounting firm. The City Council shall discuss the results of such audit at a meeting of the City Council that is open to the public.

The report of such audit shall be posted on the City’s website.

SECTION 16. ENJOINING COLLECTION FORBIDDEN.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part

1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

SECTION 17. SEVERABILITY.

If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

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Item # 11.
316754.4 8
SECTION 18. EFFECTIVE DATE.

This Ordinance shall take effect 10 days after the date the vote is declared by the City Council.

SECTION 19. CERTIFICATION; PUBLICATION.

Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this ordinance and shall cause it to be published according to law and transmitted to the California Department of Tax and Fee Administration.

PASSED AND ADOPTED by the City Council of the City of Grass Valley, State of California, on Apil 9, 2024, by the following vote:

AYES:

NOES:

ABSENT:
_______________________
Jan Arbuckle, Mayor
Attest:
_____________________
Taylor Day, City Clerk
Approved as to Form:
_________________________
Michael G. Colantuono, City Attorney

Page 65 ends

Item # 11.

City of Grass Valley
City Council
Agenda Action Sheet
Title: FY 2023-24 Mid-Year Budget Review
CEQA: Not a project
Recommendation: It is recommended that the City Council, by MOTION, approve the Mid-Year Budget Review and recommended revisions.

Prepared by: Andy Heath
Council Meeting Date: 04/09/2024 Date Prepared: 04/02/2024 Agenda: Administrative

Discussion:

The Mid-Year Budget Review is designed to provide a tool for understanding the City’s financial condition during the first part of the fiscal year, projecting the financial condition through the end of the fiscal year, and revising the budget to bring the adopted budget in line with expectations based on previously approved budget amendments and current economic conditions.

This year’s Mid-Year Budget Review focuses on management’s assessment of overall funding impacts likely to result over the balance of the current fiscal year to maintain existing service levels, while mitigating the potential impacts of economic and fiscal uncertainty due to inflationary impacts and mandated requirements. Over the course of the last year, management has found that while COVID-related economic impacts have waned, other factors have come into play that significantly impact the City’s current and future fiscal wherewithal. Given this high level of economic uncertainty, City staff remains actively engaged in the monitoring of all sectors of economic activity while updating the long-term forecast for the City’s General Fund.

This memorandum provides a snapshot of aggregated Mid-Year adjustments recommended for the balance of FY 2023-24. This memorandum also presents a multi-year forecast for the City’s General Fund that builds in an array of assumptions.

The information noted below will form the foundation for a PowerPoint presentation to be provided at the City Council Meeting.

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Item # 12.

General Fund
Comparison of current Budget-to-Actual performance:

Revenues Expenditures
FY 2023-24 Adopted Budget $ 17,034,501 $ 16,819,472
Estimated Amounts @ 6/30/24 $ 17,937,153 $ 18,151,651
Recommended Adjustment $ 902,652 $ 1,332,179
As indicated above, it is anticipated that the City will need to adjust originally budgeted General Fund revenues upward by $902,652 and General Fund expenditures upward by $1,332,179. The information presented below, which will be discussed in a presentation to the City Council on this item, includes detailed information regarding the recommended adjustments:

In summary, the proposed net increase of $902,652 to General Fund revenues is comprised of the following:

Revenue Type Amount Reason / Rationale
Property Taxes $123,570
- Increase in property taxes due to higher-than
anticipated growth in FY 2023-24 assessed
valuation ~ 4.9%
Property Tax in Lieu of MVLF $12,931
- True-up of FY 2023-24 anticipated revenues
consistent with growth in assessed valuation
RPTTF Residual Property
Taxes $125,350
- Increase in former redevelopment tax
increment as property taxes due to winding
down of redevelopment affairs and higher
growth in assessed valuation
Sales Taxes ($142,710)
- Decrease in sales taxes consistent with
projections provided by City’s Sales Tax
consultant (HdL) and offset by reduction in
sales tax sharing payment with Nevada County
Franchise Payments – Gas &
Electric $51,000
- Increased collections of PG&E Franchise Fees
due to significantly higher PG&E costs
statewide (City receives a portion of fees
charged through franchise payment)
Franchise Payments – Solid
Waste $39,700
- Increased collections of Solid Waste Franchise
Fees due to higher rates imposed by Waste
Management
Animal Shelter Fees / Other
Revenues $15,294
- Increased Animal Shelter revenues due to
increased reimbursement for services
provided from Nevada City
Public Works / Engineering
Fees & Permits $22,500
- Increased Public Works Encroachment Permit
Fees due to Mill Street Encroachment Program

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Item # 12.

Revenue Type, cont. Amount Reason / Rationale
Interest Earnings $35,000
- Increase in interest earnings as interest rates
continue at higher levels and the City focuses
on portfolio management
Proposition 64 Grant $110,000
- Inclusion of Proposition 64 Public Health and
Safety Grant (erroneously excluded from
budget at beginning of year)
Transfers In – POB Payments $453,855
- Update to budget methodology to account for
Measure E / Water / Sewer share of Pension
Obligation Bond debt service costs, which is
wholly paid by the General Fund
Transfer In – Deere Lease
Payments $21,278
- Update to budget methodology to account for
Water / Sewer share of Deere Lease (Backhoe)
debt service costs, which is wholly paid by the
General Fund
All Other Revenue Sources $34,884
- Residual aggregate increase in all other
General Fund revenue sources
A proposed net increase of $1,332,179 to General Fund expenditure appropriations is comprised of the following:

Appropriation Amount Reason / Rationale
City Manager $24,987
- Increase in personnel costs due to department
promotion and addition of COLA effective
after the budget was adopted
Finance (Administrative
Services) ($36,829)
- Decrease in personnel costs due to allocation
updates to other funds offset by addition of
COLA effective after the budget was adopted
Information Services $20,761
- Increase in information technology
appropriations due to increased managed
services contract costs net of overhead
transfers to other funds
Police $336,975
- Increase in Police personnel costs to account
for previously unbudgeted salary increases
effective July 1, 2023; coupled with increased
retirement payouts and overtime related to
police actions
- Increased dispatch costs not previously built
into budget when adopted
Fire $551,264
- Increase in Fire personnel costs to account for
previously unbudgeted salary increases
effective July 1, 2023; coupled with increased
overtime related to coverage requirements
(minimum staffing / FMLA / Workers Comp)

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Item # 12.

Appropriations, cont. Amount Reason / Rationale
Building ($57,780)
- Decrease in Building personnel costs due to
staff attrition and updated allocations to
other funds
Engineering ($31,593)
- Decrease in Engineering personnel costs due
to vacancy savings; offset by the shared costs
of one-time vehicle purchases
Facilities $21,850
- Increase in Facilities capital costs due to
shared costs for one-time vehicle purchases
offset by lower contractual services costs
(based on current activity to date)
Fleet Services $131,051
- Increase in Fleet Services personnel costs due
to updated allocations to other funds and
higher amounts of overtime (note: some
overtime may be reimbursed due to
participation in eligible Strike Teams)
Streets ($45,351)
- Decrease in Streets personnel costs due to
vacancy savings and staff allocation transfers;
offset by purchase of 2 Snowplow Kits and
increased operating materials due to budget
right-sizing
Swimming Pool $29,974
- Increase in Swimming Pool personnel costs due
to increased allocation of staffing costs for
this function
Parks / Parks Maintenance $160,543
- Increase in Parks / Parks Maintenance
personnel costs due to increased allocation of
staffing costs for this function
Non-Departmental – PG&E
Costs / Capital Costs /
Contingency Appropriation
($30,000)
- Increase in PG&E costs due to continued rate
increased imposed statewide - $20,000
- Increase in capital purchases associated with
equipment upgrades for the City’s Council
Chambers - $30,000
- Reduction in Contingency Appropriation for
balance of fiscal year – ($80,000)
Pension Obligation Bonds $440,119
- Update to budget methodology to account for
Measure E / Water / Sewer share of Pension
Obligation Bond debt service costs, which is
wholly paid by the General Fund (offset by
transfers into General Fund)

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Item # 12.

Appropriations, cont. Amount Reason / Rationale
General Fund Capital
Projects ($200,000)
- Decrease in General Fund capital projects due
to elimination of Streetlight Ownership
Conversion Project (will seek other funding
sources to complete this project)
All Other Appropriations $16,208
- Residual increase in all other General Fund
appropriations
At the end of the current fiscal year, General Fund reserves (designated and undesignated) are anticipated to be approximately $8.75 million. It is anticipated that the General Fund will use approximately $214,498 of undesignated reserves during FY 2023-24 to deliver priority services and projects to the community.

Projected reserve levels as of June 30, 2024 include:
- $ 6,161,584 Designated Reserves (See General Fund Schedule for list) - 2,586,737 Undesignated Reserves
- $ 8,748,321 Total General Fund Reserves
General Fund Forecast
As previously discussed, development of a multi-year forecast for the City’s General Fund continues to be updated. This forecast is based on a “base budget” concept which accounts for the following:
- All current one-time impacts to revenues and expenditures are removed for purposes of forecasting future fiscal activity (note: certain one-time revenues and expenditures may cross multiple fiscal years)
- All currently authorized positions are included in the forecast and assumed filled for entirety of each future fiscal year
- Only approved negotiated salary increases are included in the forecast - Revenues and expenditures are adjusted each year based on a growth assumption factors
Development of the forecast is sightly complicated by unknown near-term and longerterm impacts to the local, state and national economies; persistent high-than-normal inflation; CalPERS policy and investment return volatility, among other things. As such, management will continue to frequently monitor economic activity and update the City Council as adjustments are made to forecasts.

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Item # 12.

The multi-year forecast for the City’s General Fund is shown below:

As noted, it is expected that just over $214,000 of existing fund balance will be required to balance the updated budget for FY 2023-24. This projected use of reserves stems from a conservative revenue projection approach offset by anticipated and known cost increases to maintain existing service levels (police, fire, building, planning, public works, parks, streets, animal control etc.).

The General Fund forecast shows a systemic deficit of between $395,000 and $515,000 for the three years beginning with FY 2024-25. This systemic deficit can be wholly attributed to the return of the CalPERS UAL amortization requirement, which will be $248,000 in FY 2024-25 and forecasted to rise to $562,000 by FY 2026-27. Ultimately, the City will need to address mitigating future deficits to avoid further exhausting reserve levels.

Enterprise Funds
Comparison of Budget-to-Actual performance for the City’s two Enterprise Funds follows:

Water Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 2,303,000 $ 4,259,913
Estimated Amounts @ 6/30/24 $ 2,459,167 $ 4,408,197
Recommended Adjustment $ 156,167 $ 148,284
Water Fund revenues are currently projected to be $156,167 higher than originally budgeted. Increases to Water Fund revenues include recognition of an additional

Page 71 ends

Item # 12.
$38,167 received in Water Connection Fees; increase in interest earnings by $110,000 due to higher interest rates; and cell tower lease revenues increase by $8,000. Water Fund expenditures are recommended to be adjusted upward by $148,284 primarily to account for increased Personnel Services costs related to updated personnel cost allocations and negotiated COLA’s not originally included in the adopted budget. An additional amount of $46,412 is also allocated to the Water Fund for its share of the annual CalPERS Pension Obligation Bond and John Deere Lease (Backhoe) debt service costs. Finally, an additional $31,779 is added to appropriations to account for purchase of an MTU / vehicle. Although it is unlikely that all capital projects originally budgeted will be completed by the end of the fiscal year, adjustments to capital appropriations are not recommended at this time given appropriations for unfinished projects will be re-budgeted in the upcoming fiscal year.

It is anticipated that the Water Fund will have approximately $1.13 million in Fund Balance at the end of FY 2023-24, essentially all of which is reserved for specific purposes. The $1.13 million ending Fund Balance assumes all capital projects are completed by the end of the fiscal year.

Sewer Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 5,275,000 $ 8,992,382
Estimated Amounts @ 6/30/24 $ 5,290,990 $ 9,419,634
Recommended Adjustment $ 15,990 $ 427,252
Sewer Fund revenues are currently projected to be $15,990 higher than originally budgeted. Increases to Sewer Fund revenues include recognition of the additional $15,990 received in Sewer Connection Fees. Sewer Fund expenditures are recommended to be adjusted upward by $427,252 primarily to account for increased Personnel Services costs related to updated personnel cost allocations and negotiated COLA’s not originally included in the adopted budget. An additional amount of $191,104 is also allocated to the Water Fund for its share of the annual CalPERS Pension Obligation Bond and John Deere Lease (Backhoe) debt service costs. Finally, capital outlay appropriations are increased by $93,175 to account for miscellaneous equipment needed for the Sewer Treatment facility. Although it is unlikely that all capital projects originally budgeted will be completed by the end of the fiscal year, adjustments to capital appropriations are not recommended at this time given appropriations for unfinished projects will be re-budgeted in the upcoming fiscal year.

It is anticipated that the Sewer Fund will have approximately $5.06 million in Fund Balance on June 30, 2024, $4.25 million of which is reserved for specific purposes.

The $5.06 million ending Fund Balance assumes all capital projects are completed by the end of the fiscal year.

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Item # 12.

Special Revenue Funds
Measure E Fund
The City segregates the accounting (revenue and expenditures) for the City’s voterapproved one-cent transaction and use tax in Fund 200 (Measure E Fund) in order to ensure this general purpose tax is used for its intended purpose (police and fire services; and streets and parks projects).

Revenues Expenditures
FY 2023-24 Adopted Budget $ 7,280,000 $ 10,226,777
Estimated Amounts @ 6/30/24 $ 7,396,331 $ 10,259,386
Recommended Adjustment $ 116,331 $ 32,609
Measure E Fund revenues are currently expected to be approximately $116,331 higher than originally anticipated due to slightly higher sales tax collections by the end of the fiscal year. Measure E Fund expenditures are expected to be approximately $32,609 higher than originally anticipated due a higher allocation of Pension Obligation Bond costs attributable to the Measure E Fund, offset by a reduction in overall staffing costs related to vacancy savings. Measure E capital projects are adjusted upwards to account for costs related to the Police Radio Infrastructure Update which was previously unbudgeted. All other streets and parks capital projects remain fully budgeted in the Measure E Fund – with work currently underway on many of them.

It is anticipated that the Measure E Fund will have approximately $1,023,442 in Fund Balance on June 30, 2024. These funds may be appropriated for any Measure E related purpose in future fiscal years.

Gas Tax Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 791,514 $ 1,000,800
Estimated Amounts @ 6/30/24 $ 759,338 $ 1,020,100
Recommended Adjustment ($ 32,176) $ 19,300
Gas Tax Fund revenues are projected to come in approximately $32,176 less than originally budgeted due to lower anticipated collections of gas taxes and SB-1 funding consistent with current projections. Gas Tax expenditures are projected to be approximately $19,300 higher than originally anticipated to account for an increase in the transfer from the Gas Tax Fund to the Traffic Safety Fund towards higher PG&E costs incurred in the Traffic Safety Fund for streetlights. It should be mentioned that any capital amounts budgeted for FY 2023-24 that remain unspent by year-end will likely be carried over into the next fiscal year.

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Item # 12.

It is anticipated that the Gas Tax Fund will have approximately $29,623 in Fund Balance on June 30, 2024. These funds are typically used towards the city’s street maintenance and rehabilitation projects and a transfer to the Traffic Safety Fund for streetlight utility and maintenance costs.

Traffic Safety Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 156,900 $ 161,000
Estimated Amounts @ 6/30/24 $ 186,100 $ 182,000
Recommended Adjustment $ 25,200 $ 21,000
The Traffic Safety Fund typically funds citywide streetlight electricity and maintenance costs. Revenues are increased by $25,200 to account for increased traffic citation revenues and an increased transfer from the Gas Tax Fund, which will fund anticipated expenditure increases of $21,000. As previously mentioned, PG&E costs incurred to maintain the city’s streetlights have increased significantly over the last two years.

It is anticipated that the Traffic Safety Fund will have $4,100 remaining in Fund Balance at the end of the fiscal year.

Fire Reserve Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 52,000 $ 100,000
Estimated Amounts @ 6/30/24 $ 79,000 $ 100,000
Recommended Adjustment $ 27,000 $ -
Fire Reserve Fund revenues are projected to be approximately $27,000 higher than those originally budgeted based on higher interest earnings and anticipated Fire Strike Team equipment usage and administrative reimbursements for participating in qualifying multiple-agency statewide fire suppression events. This increase represents the funds already collected to date; with the expectation that there may be additional funds collected by year-end. These funds may be used for applicable fire equipment replacement costs. No changes are recommended for Fire Reserve Fund expenditures which include fire operations expenditures that would otherwise be borne by the General Fund.

It is anticipated that the Fire Reserve Fund will have approximately $152,129 in Fund Balance on June 30, 2024. Of this amount, $45,000 is reserved for future apparatus purchases related to the Nevada City Fire Services operation (the City contracts with Nevada City to provide Fire Service). Other reserves may be appropriated in future fiscal years towards eligible fire equipment replacement costs.

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Item # 12.

Developer Impact Fee Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 75,000 $ 2,356,181
Estimated Amounts @ 6/30/24 $ 136,760 $ 2,136,608
Recommended Adjustment $ 61,760 ($ 219,573)
Developer Impact Fee Fund revenues are projected to be approximately $61,760 higher than those originally budgeted based on fee collections to date. Developer Impact Fee Fund expenditures are projected to be $219,573 lower due to account for a reduction in funding available for the Mill Street Parking Lot Project offset by an increase in allocated costs towards upgrades to the City Council Chambers.

It is anticipated that the Developer Impact Fee Fund will have approximately $314,215 in Fund Balance on June 30, 2024. These funds may be appropriated in future fiscal years towards eligible development impact / mitigation projects consistent with collection of fees for specific purposes.

Capital Projects Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 12,846,181 $ 12,846,181
Estimated Amounts @ 6/30/24 $ 13,024,363 $ 12,376,608
Recommended Adjustment $ 178,182 ($ 469,573)
The Capital Projects Fund accounts for non-enterprise Capital Projects citywide.

Capital Projects are typically funded with non-discretionary (grants, fees, etc.) revenue sources and transfers in from other funds. Capital Projects Fund revenues are recommended to increase by $178,182 to account for decreased transfers from other funds to cover project costs, offset by increased anticipated reimbursements from state and federal sources for various projects.

Capital Projects Fund expenditures are recommended to decrease by $469,573 to account for a reduction in the appropriation for the Mill Street Parking Lot (not enough funding is available in the Developer Impact Fee Fund) and the elimination of the Streetlight Ownership Conversion Project which was originally funded by the General Fund.

Special Projects Fund Revenues Expenditures
FY 2023-24 Adopted Budget $ 150,000 $ 3,000,000
Estimated Amounts @ 6/30/24 $ 182,793 $ 3,000,000
Recommended Adjustment $ 32,793 $ -

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Item # 12.

The Special Projects Fund accounts for certain projects funded by developmentrelated and special funding sources. Special Projects Fund revenues are recommended to increase by $32,793 to account for the Regional Transportation Mitigation Fees received from the Nevada County Transportation Commission.

Special Projects Fund expenditures are recommended to remain unchanged at $3 million, which is currently appropriated for the Sierra College Field Upgrades and funded by the remaining debt proceeds received in FY 2021-22 for the City’s Parks.

Fund Balance in the Special Projects Fund is projected to be approximately $3.60 million on June 30, 2024.

Other Funds
Fund Schedules for other funds (some with recommended adjustments) are also included with the Mid-Year Report. The funds include the following:
- Vehicle Replacement Fund - E. Daniels Park Fund
- Animal Shelter Fund - DUI Grant Fund
- EPA Site Grant Fund
The Successor Agency Fund, CDBG / HOME Grant(s) and Assessment District Funds do not have any recommended adjustments with the mid-year update.

FY 2024-25 Budget Development
As the City begins the budget process for Fiscal Year 2024-25, it is critical to understand the issues impacting the City’s finances in the future. Although the impacts of the COVID-19 Pandemic are expected to completely mitigated, rising inflation, CalPERS investment return volatility and increasing unfunded liability amortization costs, citywide insurance costs and the continued ability to attract and retain top-notch staff are likely to impact future budgets. As such, staff will regularly monitor financial activity and report back to the City Council and the public over the next few months consistent with the annual budget process typically undertaken by staff and leading up to the Preliminary FY 2024-25 to be considered by the City Council in May 2024 and ultimately the final adoption of the FY 2024-25 budget in June 2024.

Similar to the process used with the development of the Fiscal Year 2023-24 budget, staff will focus on recommending an annual spending plan that addresses community priorities without compromising the efficacy of existing levels of service.

Council Goals/Objectives: The consideration and approval of the budgetary mid-year adjustments executes a portion of the work tasks towards achieving Economic Development and Vitality; and High-Performance Government and Quality Service.

Fiscal Impact: The Fiscal Year 2023-24 recommended budget modifications balance expenditures with anticipated revenues and carryover monies for noted funds.

Page 76 ends

Item # 12.

Funds Available: Yes Account #: All City Funds
CEQA: Not a Project subject to CEQA requirements.

Reviewed by: City Manager
Attachments:

Fund Schedules for:
- Fund 100 – General Fund
- Fund 500 – Water Enterprise Fund
- Fund 510 – Sewer Enterprise Fund
- Fund 200 – Measure E Fund
- Fund 201 – Gas Tax Fund
- Fund 202 – Traffic Safety Fund
- Fund 203 – Fire Reserve Fund
- Fund 206 – Developer Impact Fee Fund
- Fund 300 – Capital Projects Fund
- Fund 310 – Special Projects Fund
- Fund 204 – DUI Grant Fund
- Fund 205 – EPA Site Grant Fund
- Fund 225 – Vehicle Replacement Fund
- Fund 450 – E. Daniels Park Fund
- Fund 451 – Animal Shelter Fund

Page 77 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund Revenue and Expenditure Detail
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24

REVENUES
Taxes 12,185,414 12,683,922 12,874,004 13,306,579 13,416,658 Franchises 886,159 916,544 991,507 927,450 1,018,150
Licenses 201,927 200,072 200,874 191,050 191,050
Services Charges / Fees 1,361,064 1,853,241 1,839,353 1,673,498 1,749,837 Interest & Use of Money 27,984 37,983 167,942 200,000 240,000 Other Agencies 515,690 771,574 784,437 489,924 612,325
Cost Reimbursements / Transfers 206,561 110,049 476,293 233,000 693,133 Other Revenues 169,020 81,501 36,056 13,000 16,000
Other Financing Sources - - - - -
Total Revenues 15,553,819 16,654,886 17,370,466 17,034,501 17,937,153

EXPENDITURES
City Council 31,365 45,194 67,477 35,713 40,600
City Manager 271,026 344,266 382,472 369,236 394,223
Finance Department 472,421 532,773 550,711 611,586 574,757 Personnel 28,434 17,418 36,544 30,958 30,958
Information Systems 408,582 294,223 337,028 298,619 319,380 City Attorney 167,130 275,662 387,818 275,000 281,250
Police Department 4,523,063 5,279,305 5,446,921 5,754,404 6,091,379 Police Department - Animal Control 178,199 211,124 282,385 255,572 257,008 Fire Department 2,567,289 3,283,481 3,697,231 3,591,691 4,142,955 Community Development - Planning 492,210 453,687 475,742 313,943 311,952 Community Development - Building 474,812 434,439 494,802 503,720 445,940 Public Works - Engineering 370,398 333,301 327,616 418,015 386,422 Public Works - Facilities 112,361 144,680 138,972 127,034 148,884 Public Works - Fleet Services 222,073 261,303 312,349 268,277 399,328 Public Works - Streets 474,231 504,117 496,744 562,469 517,118 Parks and Recreation - Swimming Pool 31,706 19,604 128,278 100,295 130,269 Parks and Recreation - Parks Maintenance 279,024 407,689 597,581 405,707 566,250 Parks and Recreation - Recreation - - - - -
Non-Departmental 1,426,798 1,672,628 2,152,876 1,405,775 1,455,775 Debt Service 1,019,104 988,223 1,446,701 1,041,458 1,481,577 Appropriation for Contingency 250,000 278,772 118,971 150,000 70,000 Transfers Out 192,326 45,501 628,556 300,000 105,626
Total Expenditures $ 13,992,552 $ 15,827,390 $ 18,507,775 $ 16,819,472 $ 18,151,651 Excess / (Deficit) of Revenues over
Expenditures 1,561,267 827,496 (1,137,309) 215,029 (214,498) Reserve Transfer to Impact Fee Fund -
Beginning Fund Balance 7,711,365 9,272,632 10,100,128 8,962,819 8,962,819 Ending Fund Balance 9,272,632 10,100,128 8,962,819 9,177,848 8,748,321 Less - Designated Reserves:

Police Department Property Deposits 69,431 69,431 22,846 22,846 22,846 Asset Forfeiture Funds 9,252 9,252 - - -
Narcotics Investigation 12,823 12,823 - - -
North Star Rock Road Mitigation 16,543 16,543 - - -
Infrastructure Repair and Replacement 19,187 19,187 - - - Tree Preservation 10,700 10,700 10,701 10,701 10,701
Whispering Pines 153,160 153,160 153,160 153,160 153,160 PARSAC Claim Reserves 75,000 75,000 75,000 75,000 75,000 ADA Access - SB 1186 14,232 22,167 14,232 14,232 14,232 PSPS Grant (Fuel Station) Reserve 187,051 187,051 - - - PEG Reserves - - 93,594 93,594 93,594
Corporation Yard Remodel Funds - 400,000 267,051 267,051 267,051 Nevada City Fire Apparatus Funds - 25,000 25,000 25,000 25,000 Pension Stabilization Reserve 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 OPEB Stabilization Reserve 500,000 500,000 500,000 500,000 500,000 Capital and Deferred Maintenance Reserve 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Economic Contingency Reserve 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Amount Not Obligated at Year End 3,205,253 3,599,814 2,801,235 3,016,264 2,586,737

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Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund Revenue Account Detail
Actuals Actuals Preliminary Actuals Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Description
Property Taxes 2,990,699 $ 3,057,833 3,388,416 3,306,430 3,430,000 RPTTF Residual Property Tax Distributions 310,844 311,452 256,239 314,650 440,000 Property Tax in Lieu of MVLF 1,380,634 1,437,038 1,503,671 1,548,781 1,561,712 Sales Taxes 7,641,707 7,874,242 7,761,819 8,295,750 8,100,000 ERAF in Lieu of Sales Tax - - - - -
Sales Tax Payment to Nevada County (1,131,479) (1,185,867) (1,158,880) (1,271,040) (1,218,000) Transient Occupancy Taxes 881,875 1,058,697 1,033,199 1,015,000 1,015,000 Real Estate Transfer Taxes 89,205 110,037 66,225 76,508 67,000 Property Tax Homeowners Exemption 21,929 20,490 23,315 20,500 20,946 Property Tax Payment to NCCFPD - - - - -
TOTAL TAXES $ 12,185,414 12,683,922 12,874,004 13,306,579 13,416,658 Franchise - Gas & Electric 162,288 $ 172,721 205,383 175,000 226,000 Franchise - Solid Waste 495,547 528,128 552,002 535,300 575,000 Franchise - Cable TV 228,324 215,695 234,122 217,150 217,150 TOTAL FRANCHISES $ 886,159 916,544 991,507 927,450 1,018,150 Business Licenses 201,894 $ 200,044 200,703 190,950 190,950 Business License Penalties 33 28 171 100 100
TOTAL LICENSES $ 201,927 200,072 200,874 191,050 191,050 Planning Department Fees / Permits 102,579 $ 202,123 53,070 65,000 55,000 Building Department Fees / Permits 339,917 270,482 350,800 235,000 255,000 Code Enforcement Penalties - 38,897 - - -
Fire Department Fees / Permits 560,256 882,840 928,469 948,150 965,650 Fire Department Assessments 253,492 256,710 257,802 257,556 257,556 Public Works / Engineering Fees / Permits 15,290 22,940 15,480 13,500 36,000 Animal Shelter Fees / Other Revenues 35,881 63,908 62,518 63,162 78,456 Police Department Fees / Other Revenues 30,359 80,897 133,256 45,175 49,675 Parks Department Fees 23,290 34,444 37,958 45,955 52,500 TOTAL SERVICE CHARGES / FEES $ 1,361,064 1,853,241 1,839,353 1,673,498 1,749,837

Page 79 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund Revenue Account Detail
Actuals Actuals Preliminary Actuals Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Description
Interest Earnings 27,984 $ 37,983 160,778 200,000 235,000 Rental Income - - 7,164 - 5,000
TOTAL INTEREST & USE OF MONEY $ 27,984 37,983 167,942 200,000 240,000 Motor Vehicle License Fees 9,436 $ 14,856 13,958 9,500 12,500 Beverage Recycling Program 4,361 5,000 5,000 5,000 5,000 Public Safety - Proposition 172 109,853 169,424 157,009 154,924 150,473 Public Safety Grants 211,791 167,372 272,075 155,000 163,852 Strike Team Reimbursements - - 23,066 - -
COPS Grant - AB 3229 100,000 307,495 165,271 160,000 165,000 SB-2 / LEAP Planning Grant 57,058 70,514 118,681 - -
Proposition 64 Grant - - - - 110,000
POST Reimbursements 12,094 24,978 18,143 - -
Other State Reimbursements 4,000 4,000 4,000 4,000 4,000 ADA Disability (SB-1186 Fee) 7,097 7,935 7,234 1,500 1,500 TOTAL FROM OTHER AGENCIES $ 515,690 771,574 784,437 489,924 612,325 Expense Reimbursements 206,561 $ 110,049 9,324 230,000 215,000 Transfer In from Gas Tax Fund - - - 3,000 3,000
Transfer In - POB Payments (Water / Sewer / Measure E) - - 445,691 - 453,855 Transfer In - Deere Lease (Water / Sewer) - - 21,278 - 21,278 TOTAL COST REIMBURSEMENTS / TRANSFERS $ 206,561 110,049 476,293 233,000 693,133 TOTAL OTHER REVENUES $ 169,020 81,501 36,056 13,000 16,000 TOTAL OTHER FINANCING SOURCES $ - - - - -
TOTAL GENERAL FUND $ 15,553,819 16,654,886 17,370,466 17,034,501 17,937,153

Page 80 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund
Departmental Expenditure Account Detail
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
City Administration
City Council - 101
Personal Services 20,007 $ 18,085 $ 19,763 $ 18,085 $ 18,085 $ Services and Supplies 11,358 27,109 47,714 17,628 22,515 Cost Allocation - - - - -
Capital Outlay - - - - -
Total: 31,365 $ 45,194 67,477 35,713 40,600
City Manager - 102
Personal Services 242,210 $ 321,817 347,524 348,270 373,257 Services and Supplies 28,816 22,449 34,948 20,966 20,966 Cost Allocation - - - - -
Capital Outlay - - - - -
Total: 271,026 $ 344,266 382,472 369,236 394,223
Finance Department - 104
Personal Services 364,725 $ 443,247 465,698 539,295 502,466 Services and Supplies 107,696 89,526 85,013 72,291 72,291 Cost Allocation - - - - -
Capital Outlay - - - - -
Total: 472,421 $ 532,773 550,711 611,586 574,757
Personnel - 103
Personal Services - $ - - - -
Services and Supplies 28,434 17,418 36,544 30,958 30,958 Cost Allocation - - - - -
Capital Outlay - - - - -
Total: 28,434 $ 17,418 36,544 30,958 30,958
Information Services - 105
Personal Services - $ - - - -
Services and Supplies 271,498 473,730 376,077 414,365 448,966 Cost Allocation - (196,149) (150,431) (165,746) (179,586) Capital Outlay 137,084 16,642 111,382 50,000 50,000
Total: 408,582 $ 294,223 337,028 298,619 319,380

Page 81 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund
Departmental Expenditure Account Detail
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
City Attorney - 106
Personal Services - $ - - - -
Services and Supplies 167,130 275,662 387,818 275,000 375,000 Cost Allocation - - - - (93,750)
Capital Outlay - - - - -
Total: 167,130 $ 275,662 387,818 275,000 281,250
Public Safety
Police - 201
Personal Services 3,403,108 $ 4,010,372 4,190,035 4,329,846 4,591,821 Services and Supplies 1,093,970 1,191,235 1,240,050 1,419,558 1,494,558 Capital Outlay 25,985 77,698 16,836 5,000 5,000
Total: 4,523,063 $ 5,279,305 5,446,921 5,754,404 6,091,379 Police - Animal Control - 202
Personal Services 149,257 $ 163,239 207,223 210,197 211,633 Services and Supplies 28,942 47,885 75,162 45,375 45,375 Capital Outlay - - - - -
Total: 178,199 $ 211,124 282,385 255,572 257,008
Fire - 203
Personal Services 1,979,554 $ 2,571,513 3,079,510 2,952,931 3,409,195 Services and Supplies 587,735 711,968 617,721 638,760 733,760 Capital Outlay - - - - -
Total: 2,567,289 $ 3,283,481 3,697,231 3,591,691 4,142,955 Community Development
Planning - 301
Personal Services 319,847 $ 333,165 404,960 269,575 267,584 Services and Supplies 172,363 120,522 70,782 44,368 44,368 Capital Outlay - - - - -
Total: 492,210 $ 453,687 475,742 313,943 311,952

Page 82 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund
Departmental Expenditure Account Detail
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Building - 302
Personal Services 361,010 $ 268,196 418,150 436,119 378,339 Services and Supplies 113,802 166,243 76,652 67,601 67,601 Capital Outlay - - - - -
Total: 474,812 $ 434,439 494,802 503,720 445,940
Public Works
Engineering - 401
Personal Services 350,213 $ 307,278 314,969 405,850 350,473 Services and Supplies 20,185 26,023 12,647 12,165 12,165 Capital Outlay - - - - 23,784
Total: 370,398 $ 333,301 327,616 418,015 386,422
Facilities - 404
Personal Services 73,144 $ 76,043 78,168 82,347 85,596
Services and Supplies 39,217 35,800 47,978 44,687 29,312 Capital Outlay - 32,837 12,826 - 33,976
Total: 112,361 $ 144,680 138,972 127,034 148,884
Fleet Services - 403
Personal Services 149,354 $ 187,805 245,703 201,287 325,625 Services and Supplies 72,719 73,498 66,646 66,990 73,703 Capital Outlay - - - - -
Total: 222,073 $ 261,303 312,349 268,277 399,328
Streets - 402
Personal Services 343,974 $ 371,749 342,398 442,729 339,589 Services and Supplies 130,257 132,368 154,346 119,740 177,529 Capital Outlay - - - - -
Total: 474,231 $ 504,117 496,744 562,469 517,118

Page 83 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund
Departmental Expenditure Account Detail
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Parks and Recreation
Swimming Pool - 502
Personal Services 16,067 $ 14,789 31,606 15,397 45,371
Services and Supplies 15,639 4,815 90,851 84,898 84,898 Capital Outlay - - 5,821 - -
Total: 31,706 $ 19,604 128,278 100,295 130,269
Parks Maintenance - 501 / 504
Personal Services 202,763 $ 212,024 321,434 218,982 379,525 Services and Supplies 76,261 195,665 276,147 186,725 186,725 Capital Outlay - - - - -
Total: 279,024 $ 407,689 597,581 405,707 566,250
Recreation - XX (In Parks FY 2020-21 Amended)
Personal Services - $ - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Total: - $ - - - -
Non-Departmental / Other
Non-Departmental - 601
Personal Services 440,487 $ 521,976 299,256 240,000 -
Services and Supplies 1,140,468 1,150,652 1,807,717 1,165,775 1,455,775 Cost Allocation - - - - -
Appropriation for Contingency 95,843 278,772 118,971 150,000 70,000 Appropriation from Designated Reserves - - - - -
Reimbursable Costs - - - - -
Capital Outlay - - 45,903 - -
Total: 1,676,798 $ 1,951,400 2,271,847 1,555,775 1,525,775

Page 84 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
General Fund
Departmental Expenditure Account Detail
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Debt Service - 5275
Facility Improvements - $ - - - -
Pension Obligation Bonds 908,914 890,491 1,322,528 906,633 1,346,752 Opterra Solar / Backhoe Leases 110,190 97,732 124,173 134,825 134,825 Total: 1,019,104 $ 988,223 1,446,701 1,041,458 1,481,577 Transfers Out - 5899
Capital Projects - Fund 180 192,326 $ 45,501 628,556 300,000 100,000 DUI Grant Fund - Fund 204 - - - - 5,626
Fire Reserve Fund - Fund 121 - - - - -
Dorsey Marketplace - 6208 (Reimbursed) - - - - -
Total: 192,326 $ 45,501 628,556 300,000 105,626
Total Appropriations - General Fund 13,992,552 $ 15,827,390 $ 18,507,775 $ 16,819,472 $ 18,151,651 $ Total Personal Services: $ 9,821,298 8,415,720 $ 10,766,397 $ 10,710,910 $ 11,278,559 $ Total Services and Supplies: 4,762,568 4,106,490 5,504,813 4,727,850 5,376,465 Total Cost Allocations: (196,149) - (150,431) (165,746) (273,336) Total Capital Outlay: 127,177 163,069 192,768 55,000 112,760 Total Debt Service: 988,223 1,019,104 1,446,701 1,041,458 1,481,577 Total Appropriation Of Designated Reserves: - - - - -
Total Reimbursable Costs: - - - - -
Total Transfers Out: 45,501 192,326 628,556 300,000 105,626 Total Appropriation For Contingency: 95,843 278,772 118,971 150,000 70,000

Page 85 ends

Item # 12.

Actuals Actuals Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Water User Fees $ 2,241,783 2,148,476 2,004,785 2,200,000 2,200,000 Water Connection Fees 184,881 23,000 75,890 10,000 48,167 Lease Revenues 45,707 50,843 58,007 50,000 58,000
Interest Earnings 126,435 13,234 153,782 40,000 150,000 Miscellaneous Revenues 25 1,548 851 3,000 3,000
Proceeds of Debt - - - - -
Transfers In From Other Funds - - - - -
$ 2,598,831 2,237,101 2,293,315 2,303,000 2,459,167
Expenditures:

Administration - Personal Services $ 154,301 176,048 180,783 233,432 215,647 Administration - Non-Personal Services 195,826 132,346 161,665 190,000 190,000 Plant - Personal Services 179,566 142,825 165,891 157,633 163,041 Plant - Non-Personal Services 455,248 568,331 657,744 580,000 580,000 Distribution - Personal Services 183,765 183,134 186,826 217,065 299,535 Distribution - Non-Personal Services 152,723 193,708 133,906 140,000 140,000 CalPERS UAAL Payment 11,136 22,276 26,428 - -
Workers Compensation Expenses 11,376 11,904 13,320 20,000 20,000 Debt Service 329,547 402,401 360,976 358,910 332,733
Information Technology Cost Allocation - 98,074 75,215 82,873 82,873 Capital Outlay 1,172 28,378 672 - 31,779
Capital Expenses 114,845 210,435 127,082 2,230,000 2,230,000 Transfers Out - Capital Projects Fund 29,650 - 700,000 50,000 50,000 Transfers Out - Debt Service (POB / Deere) - - 71,475 - 72,589 $ 1,819,155 2,169,860 2,861,983 4,259,913 4,408,197
Excess (deficit) of revenues over expenditures $ 779,676 67,241 (568,668) (1,956,913) (1,949,030) Beginning Fund Balance $ 2,805,306 3,584,982 3,652,223 3,083,555 3,083,555 Ending Fund Balance $ 3,584,982 3,652,223 3,083,555 1,126,642 1,134,525 Reserved Fund Balance:

Safe Drinking Water Loan Debt Svc. Reserve $ 148,700 148,700 148,700 148,700 148,700 Trustee Cash - Capital Leases Payable - - - - -
Pension Reserve 75,000 75,000 75,000 75,000 75,000
Working Capital Reserve 325,000 325,000 325,000 250,000 250,000 Water System Reinvestment Reserve 360,663 360,663 360,663 360,663 360,663 Emergency Reserve 300,000 300,000 300,000 300,000 300,000 Connection Fee Capital Reserve - - - - -
Unobligated Fund Balance $ 2,375,619 2,442,860 1,874,192 (7,721) 162 City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Water Fund (Fund 500)

Page 86 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Water Fund (Fund 500)
Actuals Actuals Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Capital Expenditures
- - - -
Trf Capital 61430 - Financial System Replcmt $ 29,650 - - - - Trf Capital 64150 - Memorial Park CDBG Project - - - - - Trf Capital 66005 - Mill Street Ped Plaza - - 700,000 50,000 50,000 XXXX - Water Line Repl - Linden / Church - - - 530,000 530,000 65210 - Water System Master Plan - - 4,009 - -
65240 - Water Systems Plan - - - 50,000 50,000
65280 - 2011 Water Line (Depot Street) - - - 600,000 600,000 65300 - Broadview Heights Booster Stn - - - 200,000 200,000 65330 - Water Treatment Plant Maintenance 54,105 - 223 250,000 250,000 65340 - Annual Water System Maintenance 60,727 191,565 114,075 250,000 250,000 65340X - Water Sampling Station Rplcmts - - - 250,000 250,000 65350 - Annual Flushing Program - - - 100,000 100,000
65230 - Water Rate Impact Fee Study - 18,870 8,775 - -
65370 - Richardson St Line Replacement 13 - - - -
$ 144,495 210,435 827,082 2,280,000 2,280,000
Capital Expenditure Detail

Page 87 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Wastewater Service Fees $ 4,792,139 4,910,741 4,679,365 4,750,000 4,750,000 Industrial Waste Permits 362,183 243,645 256,046 250,000 250,000 Sewer Connection Fees 428,155 177,005 481,681 50,000 65,990 Grants 1,513,809 - - - -
Lease Agreement Revenues - - - - -
Miscellaneous Revenues - - - - -
Interest Earnings 16,668 25,878 44,677 225,000 225,000
Expense Reimbursements - - - - -
Gain on Sales of Assets - - - - -
Transfers In From Other Funds - - - - -
$ 7,112,954 5,357,269 5,461,769 5,275,000 5,290,990
Expenditures:

Administration - Personal Services $ 182,033 230,279 234,603 296,471 283,302 Administration - Non-Personal Services 385,774 263,491 296,396 325,000 325,000 Plant - Personal Services 784,471 597,945 696,747 611,153 652,165 Plant - Non-Personal Services 1,259,149 998,174 1,144,606 1,350,000 1,350,000 Collection - Personal Services 184,535 118,085 190,526 172,296 287,426 Collection - Non-Personal Services 90,433 168,376 140,357 80,000 80,000 CalPERS UAAL Payment 32,675 48,726 44,844 - -
Workers Compensation Costs 28,994 22,774 28,195 33,000 33,000 Debt Service 1,448,310 1,515,867 1,392,975 931,589 931,589 Information Technology Cost Allocation - 98,074 75,215 82,873 82,873 Other Expenses - - - - -
Capital Outlay - Equipment - 124,369 56,812 - 93,175
Capital Expenses 1,429,108 30,369 26,502 5,110,000 5,110,000 Transfers Out - Capital Projects Fund 29,650 - - - -
Transfers Out - Debt Service (POB / Deere) - - 187,858 - 191,104 $ 5,855,132 4,216,529 4,515,636 8,992,382 9,419,634
Excess (deficit) of revenues over expenditures $ 1,257,822 1,140,740 946,133 (3,717,382) (4,128,644) Beginning Fund Balance $ 5,842,570 7,100,392 8,241,132 9,187,265 9,187,265 Ending Fund Balance $ 7,100,392 8,241,132 9,187,265 5,469,883 5,058,621 Reserved Fund Balance:

Bond Reserve $ - - -
Trustee Cash - Leases and Other Debt 1,109,052 585,453 605,576 605,576 605,576 FHMA Debt Service Reserve 134,362 134,362 134,362 134,362 134,362 Glenbrook Sewer Improvement Reserve - - - - -
Working Capital Reserve 850,000 850,000 850,000 850,000 850,000 Pension Reserve 175,000 175,000 175,000 175,000 175,000 System Reinvestment Reserve 1,735,887 1,735,887 1,735,887 1,735,887 1,735,887 Emergency Reserve 750,000 750,000 750,000 750,000 750,000 Connection Fee Capital Reserve - - - - -
Unobligated Fund Balance $ 2,346,091 4,010,430 4,936,440 1,219,058 807,796 City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Sewer Fund (Fund 510)

Page 88 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Sewer Fund (Fund 510)
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Capital Expenditures
Trf Capital 61430 - Financial System Replcmt $ 29,650 - - - - 66590 - NPDES 2008-13 - - - 60,000 60,000
66820 - Annual Sewer Maintenance 20,157 895 9,369 200,000 200,000 66890 - Annual WWTP Projects 154,261 141 906 2,200,000 2,200,000 66960 - 2018 WWTP Improvements Project 1,247,245 - 747 50,000 50,000 66940 - Slate Creek Lift Station 7,445 4,711 505 600,000 600,000 XXXX - Sewer Lining Project - - - 2,000,000 2,000,000
65230 - Sewer Rate Study - 24,622 14,975 - -
$ 1,458,758 30,369 26,502 5,110,000 5,110,000
Capital Expenditure Detail

Page 89 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Measure N Sales Tax $ - - - - -
Measure E Sales Tax 6,634,724 6,987,724 6,992,271 7,250,000 7,366,331 Fire Department Response Reimbursement 23,087 3,576 979 5,000 5,000 Interest Income 17,371 16,131 34,911 25,000 25,000
Other Income 5,790 227,362 219,718 - -
$ 6,680,972 7,234,793 7,247,879 7,280,000 7,396,331
Expenditures:

Police - Personal Services $ 1,442,142 1,474,359 1,620,204 1,596,647 1,650,732 Police - Non-Personal Services 46,818 129,807 161,830 195,975 195,975 Fire - Personal Services 902,742 1,351,543 1,429,289 1,554,398 1,436,548 Fire - Non-Personal Services 95,286 129,072 161,041 168,894 168,894 Public Works - Personal Services - - - - -
Public Works - Non-Personal Services 20,433 34,560 16,210 - - Safety - CalPERS UAAL Amortization 253,308 312,237 72,781 124,036 - Safety - Liability Insurance 58,965 70,688 92,121 84,779 84,779 Safety - Worker's Compensation Costs 43,734 71,990 84,498 61,135 61,135 - - -
Police - Capital Outlay $ 129,937 283,037 435,671 250,000 250,000 Fire - Capital Outlay 265,298 89,489 228,200 981,913 981,913 Debt Servce - Parks Funding - - 662,829 654,000 654,000 Direct Capital Outlay - Streets / Parks / PS 1,011,674 1,794,564 679,685 1,025,000 1,033,970 Transfers Out - Capital Projects Fund 916,780 1,445,910 1,711,222 3,530,000 3,530,000 Transfers Out - General Fund (For POB DS) - - 207,637 211,440 Transfers Out - Gas Tax Fund - - 263,269 - -
$ 5,187,117 7,187,256 7,826,487 10,226,777 10,259,386
Excess (deficit) of revenues over expenditures $ 1,493,855 47,537 (578,608) (2,946,777) (2,863,055) Beginning Fund Balance $ 2,923,713 4,417,568 4,465,105 3,886,497 3,886,497 Ending Fund Balance $ 4,417,568 4,465,105 3,886,497 939,720 1,023,442 City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Measure E Fund (Fund 200)

Page 90 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Measure E Fund (Fund 200)
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Capital Expenditures
Police Capital - Vehicles / Buildout $ 118,900 215,325 435,671 200,000 200,000 Police Capital - Equipment 11,037 67,712 - 50,000 50,000 Fire Capital - Fire Truck - - - 928,000 928,000
Fire Capital - Vehicles / Buildout 8,311 8,429 223,420 53,913 53,913 Fire Capital - Equipment / Radios 256,987 81,060 4,780 - - 63910 - Police Dept. Radio Infrastructure 6,428 921,984 339,861 - 8,970 64100 - Lyman Gilmore Field - - - - -
64110 - Park Bathrooms - - - - -
64130 - Minnie Park / Memorial Park Projects - - - -
64140 - Measure E Park Projects / Maintenance 1,005,246 872,580 339,824 925,000 925,000 63350 - Wolf Creek Train Eng / Enivoronmental - - - 100,000 100,000 XXXX - Condon Parking Lot Improvement - - - - -
66100 - Bank Street Park Playground Upgrade - - - - -
Trf to Gas Tax 61220 - Annual Street Mtc - - - - -
Trf to Capital 66101 - Sierra College Fields - - - 1,000,000 1,000,000 Trf to Capital XXXX - Main Street Resealing - - - 200,000 200,000 Trf to Capital XXXX - Megenta Drain Restore. - - - 10,000 10,000 Trf to Capital 61220 - Annual Street Mtc - - 48,363 - - Trf to Capital 61330 - Annual Street Rehab 38,726 389,156 38,702 - - Trf to Capital 61420 - Pavement Mgmt Plan 1,699 - - - - Trf to Capital 63850 - Measure E Street Projects 806,290 - 178,587 1,770,000 1,770,000 Trf to Capital 64140 - Measure E Parks 60,017 47,008 44,842 - - Trf to Capital 64150 - Memorial Park Pool / Fac 10,048 748,883 400,000 - - Trf to Capital 63370 - Condon Connector - - - - -
Trf to Capital 63420 - City Hall / GVPD Video - - - - - Trf to Capital 63440 - Mill Street Pkg Lot - 5,601 - - - Trf to Capital 63850 - Measure E Park Projects - 9,636 - - - Trf to Capital 66005 - Mill Street Ped Plaza - - 1,000,000 500,000 500,000 Trf to Capital 66006 - Slate Creek Drainage 243,014 - - - Trf to Capital 66007 - HSIP Improvements - 2,612 728 50,000 50,000 $ 2,323,689 3,613,000 3,054,778 5,786,913 5,795,883
FY 2023-24 Staff Allocations - Measure E Fund:

Police Department - 10.9 FTE
Fire Department - 11.2 FTE
Capital Expenditure Detail

Page 91 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Section 2103 Apportionment $ 85,832 102,053 110,980 134,935 119,878 Section 2105 Apportionment 65,543 71,718 77,514 89,355 82,893 Section 2106 Apportionment 92,323 107,667 103,373 115,282 109,332 Section 2107 Apportionment 88,690 79,655 105,638 107,327 113,221 Section 2107.5 Apportionment 3,000 3,000 3,000 3,000 3,000 Road Repair / Accountability Act / Loan Repay 238,498 263,269 303,897 336,615 326,014 Proposition 42 Local Improvements - - - - -
LTF / RSTP Funding (NCTC Pass-Through) - - - - -
Transfers In - Measure E Fund - - 263,269 - -
Interest Earnings 3,497 1,528 20,676 5,000 5,000
$ 577,383 628,890 988,347 791,514 759,338
Expenditures:

Capital Outlay - Street Sweeper $ - - - - -
Transfers Out - General Fund - - - 3,000 3,000
Transfers Out - Traffic Safety Fund 175,147 134,079 135,019 136,800 156,100 Transfers Out - Capital Projects Fund 631,620 187,005 963,999 861,000 861,000 $ 806,767 321,084 1,099,018 1,000,800 1,020,100
Excess (deficit) of revenues over expenditures $ (229,384) 307,806 (110,671) (209,286) (260,762) Beginning Fund Balance $ 322,634 93,250 401,056 290,385 290,385 Ending Fund Balance $ 93,250 401,056 290,385 81,099 29,623 Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Capital Expenditures
Trf to Capital 61220 - Street Maintenance $ 122,296 11,631 100,000 156,000 156,000 Trf to Capital 61300 - Dorsey Drive - - - - -
Trf to Capital 61330 - Street Rehab 505,000 175,000 850,000 295,000 295,000 Trf to Capital 61420 - Pavement Mgt Plan - - - - -
Trf to Capital 63630 - Annual Sidewalks 4,324 374 13,999 30,000 30,000 Trf to Capital 63350 - Wolf Creek Trail - - - - -
Trf to Capital 63450 - McCourtney Road ATP - - - 10,000 10,000 Trf to Capital XXXX - S. Auburn Street Renov - - - 330,000 330,000 Trf to Capital XXXX - Bennett St Bridge - - - 40,000 40,000 $ 631,620 187,005 963,999 861,000 861,000
City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Gas Tax Fund (Fund 201)
Capital Expenditure Detail

Page 92 ends

Item # 12.

Actual Actual Perliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Parking Citation Revenue $ 19,452 25,500 32,399 20,000 30,000 Transfer In - Gas Tax Fund 175,147 134,079 135,019 136,800 156,100 Miscellaneous Grants - - 7,000 - -
Interest Earnings (90) - - 100 -
$ 194,509 159,579 174,418 156,900 186,100
Expenditures:

Utilities Costs $ 108,076 119,600 137,935 130,000 155,000 Professional Services / Contracts 52,408 41,500 24,111 30,000 25,000 Parking Citations - - 2,622 1,000 2,000
Capital Expenses 9,750
$ 160,484 161,100 174,418 161,000 182,000
Excess (deficit) of revenues over expenditures $ 34,025 (1,521) - (4,100) 4,100 Beginning Fund Balance $ (32,504) 1,521 - - -
Ending Fund Balance $ 1,521 - - (4,100) 4,100
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Capital Expenditures
62600 - Traffic Calming Project $ - - 9,750 - -
$ - - 9,750 - -
Capital Expenditure Detail
City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Traffic Safety Fund (Fund 202)

Page 93 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Strike Team Revenues $ 131,212 107,230 49,921 50,000 75,000 Other Revenues - 899 - - -
Interest Earnings 825 972 4,313 2,000 4,000
$ 132,037 109,101 54,234 52,000 79,000
Expenditures:

Fire Department Expenditures $ 27,359 70,554 61,064 100,000 100,000 $ 27,359 70,554 61,064 100,000 100,000
Excess (deficit) of revenues over expenditures $ 104,678 38,547 (6,830) (48,000) (21,000) Beginning Fund Balance $ 81,734 186,412 224,959 218,129 218,129 Fund Balance Reserved - Nev. City Apparatus $ - 15,000 30,000 30,000 45,000 Ending Fund Balance $ 186,412 209,959 188,129 140,129 152,129 City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Fire Reserve Fund (Fund 203)

Page 94 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Local Drainage Impact Fees $ 38,625 10,591 10,440 - 7,523 Parking in Lieu Fees - 14,518 - - -
Fire Services Impact Fees 64,197 14,461 7,846 - 5,323
Police Services Impact Fees 25,249 7,144 7,841 - 2,758
Admin / General Facilities Impact Fees 34,525 7,245 2,602 - 3,430 Subdivision Map Act Fees 4,700 - - - -
Regional Circulation Impact Fees 3,902 - - - -
Regional Storm Drainage Impact Fees - - - - -
Parks / Recreation Impact Fees 205,840 37,932 16,019 - 16,998 GV Transportation Improvement Impact Fees 231,586 53,300 157,859 - 25,158 GV Transportation Administrative Fees 6,137 529 1,579 - 251 Glenbrook Basin Traffic Impact Fees 1,388 1,729 4,004 - 319 McKnight Way Recapture Impact Fees 5,580 - - - -
Interest Earnings 28,391 14,098 63,011 75,000 75,000
$ 650,120 161,547 271,201 75,000 136,760
Expenditures:

Police Department Capital Outlay $ - 17,795 - - -
Fire Department Capital Outlay - 103,828 - - -
City Hall / Park Impvmts Capital Outlay - 24,157 11,529 - 50,000 Property Purchase / Regional Circulation 284,996 269,436 - - Transfers Out - General Fund - - - - -
Net Transfers Out - Capital Projects Fund - - 587,002 2,356,181 2,086,608 $ - 430,776 867,967 2,356,181 2,136,608
Excess (deficit) of revenues over expenditures $ 650,120 (269,229) (596,766) (2,281,181) (1,999,848) Beginning Fund Balance $ 2,829,938 3,480,058 3,210,829 2,614,063 2,614,063 Ending Fund Balance $ 3,480,058 3,210,829 2,614,063 332,882 614,215 Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Capital Expenditures
Trf Capital 66005 - Mill Street Ped Mall. $ - - 561,621 - - Trf Capital 61100 - Storm Drain Plan - - - 300,000 300,000 Trf Capital 63452 - Centennial Dr Realignment - - - 1,200,000 1,200,000 Trf Capital 63440 - Mill Street Parking Lot - - 10,137 506,181 236,608 Trf Capital 63420 - City Hall / PD Security - - - - -
Trf Capital 63451 - Bennett & Ophir Circulation - - - 200,000 200,000 Trf Capital 63750 - Playground Maintenance - - - - -
Trf Capital 63770 - McKnight Analysis - - - - -
Trf Capital 63970 - East Main Improvements - - - - -
Trf Capital 63820 - Matson Creek Phase I - - - 150,000 150,000 Trf Capital 63840 - WM/S/C Ped Impvmets - - - - -
Trf Capital 63870 - GVTIF Update - - 15,244 - -
Trf Capital 63360 - Wolf Creek Trail - - - - -
$ - - 587,002 2,356,181 2,086,608
City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Developer Impact Fee Fund (Fund 206)
Capital Expenditure Detail

Page 95 ends

Item # 12.

City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Developer Impact Fee Fund (Fund 206)
Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Fund Balances
Reserve for Parking In Lieu $ 75,152 89,670 - - -
Reserve for Local Circulation 471,951 471,951 - - -
Reserve for Local Drainage 279,872 290,463 300,903 903 8,426 Reserve for Police Services 45,736 35,085 42,926 42,926 45,684 Reserve for Fire Services 101,592 12,225 20,071 20,071 25,394 Reserve for Admin / General Facilties 71,759 79,004 81,606 81,606 35,036 Reserve for Regional Circulation 801,177 516,181 236,608 (269,573) - Reserve for Regional Drainage 153,994 153,994 153,994 3,994 3,994 Reserve for Parks and Recreation 266,011 303,943 319,962 319,962 336,960 Reserve for SMA Map Act Fees 39,292 39,292 39,292 39,292 39,292 Reserve for GVTIF 1,261,370 1,314,670 1,472,529 72,529 97,687 Reserve for GVTIF Administration 27,407 27,936 14,271 14,271 14,522 Reserve for Glenbrook Basin 5,032 6,761 10,765 10,765 11,084 Reserve for Glenbrook Basin Administration 268 268 268 268 268 Reserve for McKnight Recapture 15,958 15,958 15,958 15,958 15,958 Unobligated Fund Balance (Mkt Val Adj) (136,513) (146,572) (95,090) (20,090) (20,090) $ 3,480,058 3,210,829 2,614,063 332,882 614,215
Fund Balance Detail

Page 96 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Federal Aid / FEMA - - - - -
Misc. Intergovernmental Revenue - - 499,118 - 205,792
RSTP Funding 240,000 150,000 - 300,000 300,000
HSIP Funding - - - 250,000 250,000
Miscellaneous Grants 532,645 - 50,590 750,000 750,000
CARES Act Funding 158,846 - 1,533,049 - -
CDBG Federal Grant - 2,416,473 1,071,122 - 344,815
CMAQ / SRF / HBSP / ATP Misc Grant Revenues 457,846 21,719 102,973 1,385,000 1,482,010 CSRAA Funding - - - 64,000 64,000
General Expense Reimbursements 5,146 3,506 3,528 - 138
General Fund Direct Funding (Mill St Ped Plz) - - 176,841 - - General Fund Reserve Funding (Fuel Stn) - - 398,142 - - Transfers In - General Fund 192,326 45,501 53,572 300,000 100,000 Transfer In - Measure E Fund 916,780 1,445,911 1,711,222 3,530,000 3,530,000 Transfer In - Gas Tax Fund 631,620 187,005 963,999 861,000 861,000 Transfers In - Mitigation Fee Fund - - 571,758 2,356,181 2,086,608 Transfers In - Spl Proj Fund 1,324,385 688,038 3,938,705 3,000,000 3,000,000 Transfers In - Water Fund 29,650 - 700,000 50,000 50,000 Transfers In - Sewer Fund 29,650 - - - -
Transfers In - Animal Shelter Fund - - - - -
CDBG Funding 366,094 393,906 - - -
4,884,988 5,352,059 11,774,619 12,846,181 13,024,363
City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Capital Projects Fund (Fund 300)

Page 97 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Capital Projects Fund (Fund 300)
Capital Projects Expenditures:

Undistributed Capital - 34,222 - - -
61100 - Storm Drain Plan - - - 300,000 300,000
61220 - 2009 Street Maintenance Projects 122,296 11,631 148,363 220,000 220,000 61330 - Annual Street Rehabilitation 783,426 714,156 888,702 555,000 555,000 61360 - Annual Storm Drain Maintenance 46,379 23,518 36,159 50,000 50,000 61380 - COVID-19 Expenditures 156,214 - - - -
61390 - PSPS Grant Projects 43,324 3,938 398,142 - -
61400 - ARPA Expenditures 4,559 112,637 - - -
61420 - Pavement Mmgt Plan 1,699 - - - -
61430 - Financial System Replacement 163,124 - - - -
61450 - Memorial Park Pool Renovation 10,048 5,548 (1,476) - - 61460 - Infrastructure Needs Assessment - - 13,005
62610 - NCTC Planning 5,707 3,701 3,667 - -
62620 - GVTIF Update - - 4,408
66301 - Condon / Scotten Field - - 3,093,695 - -
XXXX - Sierra College Field - - - 4,000,000 4,000,000
63260 - Storm Damage / Repairs 206,259 13,794 - - -
63270 - Peabody Creek Restoration 53,415 - - - -
63280 - 2021 Winter Storm Damage - 514,362 205,791 - -
63300 - Main Street Resealing - - - 200,000 200,000
63350 - Wolf Creek Trail Project Study Report 49,129 109,144 112,211 - - 63370 - Condon Connector 461,327 - - - -
63440 - Mill Streert Parking Lot 4,189 5,600 10,137 506,181 236,608 63450 - McCourtney Road Ped Imp 2,004 - 346 810,000 810,000 63451 - Bennett & Ophir Circulation - - - 200,000 200,000 63452 - Centennial Drive Realignment - - - 1,200,000 1,200,000 XXXX - S Auburn / Colfax Roundabout - - - 300,000 300,000 XXXX - Magenta Drain Restoration - - - 40,000 40,000
XXXX - Streetlight Ownership Conversion - - - 200,000 - XXXX - Southern Sphere Infrastructure Study - - - 200,000 200,000 XXXX - S. Auburn Street Renovation - - - 1,100,000 1,100,000 63630 - Annual Sidewalk Repairs / Maintenance 4,324 374 13,999 30,000 30,000 63740 - Florance Avenue Project - - - - -
63750 - Playground Maintenance Projects 162 - - 50,000 50,000 XXXX - Bennett Street Bridge - - - 115,000 115,000
63820 - Maston Creek Phase I - - - 150,000 150,000
63850 - Measure E Street Rehabilitation 806,290 9,636 178,587 1,770,000 1,770,000 63900 - Aerial Survey Update 39,959 7,993 - - -
64140 - Meas. E Park Prj (Condon Skate Park) 60,016 47,008 44,841 - - 64150 - CDBG Memorial Park Facility Impv 366,094 3,553,714 1,868,003 - - 66005 - Mill Street Pedestrian Plaza 2,030 575,421 4,816,521 550,000 550,000 66007 - HSIP Improvements - 2,611 729 300,000 300,000
66006 - Slate Creek Drainage - 243,014 - - -
3,391,974 5,992,022 11,835,830 12,846,181 12,376,608
Excess (deficit) of revenues over expenditures 1,493,014 (639,963) (61,211) - 647,755 Beginning Fund Balance (1,444,793) 48,221 (591,742) (652,953) (652,953) Ending Fund Balance 48,221 (591,742) (652,953) (652,953) (5,198)

Page 98 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Intergovernmental Revenue $ - 404,523 1,950,000 - -
RTMF Reimbursements 124,000 307,666 356,808 - 32,793
Debt Proceeds - Parks Projects - 6,003,493 -
ARPA Funding - 1,533,049 - - -
Interest Earnings 5,038 24,094 34,668 150,000 150,000
$ 129,038 8,272,825 2,341,476 150,000 182,793
Expenditures:

Streets Materials Costs $ - 35,828 - - -
Purchase of Property - - - - -
Captial Outlay - Parking Lot Construction - - - - -
Trf to Capital - XXXX - Sierra College Field - - - 3,000,000 3,000,000 Trf to Capital 64140 - Condon / Scotten Turf - - 3,093,695 - - Trf to Capital 63260 - Storm Damage Repairs 1,320,196 - - - - Trf to Capital 66005 - Mill Street Ped Plaza - 575,421 845,010 - - Trf to Capital 61400 - ARPA Expenditures - 112,617 - - - Trf to Capital 63440 - Mill Street Parking Lot 4,189 - - - - $ 1,324,385 723,866 3,938,705 3,000,000 3,000,000
Excess (deficit) of revenues over expenditures $ (1,195,347) 7,548,959 (1,597,229) (2,850,000) (2,817,207) Beginning Fund Balance $ 1,661,406 466,059 8,015,018 6,417,789 6,417,789 Ending Fund Balance $ 466,059 8,015,018 6,417,789 3,567,789 3,600,582 City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Special Projects Fund (Fund 310)

Page 99 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Other Revenues $ - - - - -
Transfers In - - - - 5,651
Interest Earnings 14 11 83 25 -
$ 14 11 83 25 5,651
Expenditures:

Safety Expenditures $ - - 10,298 - -
$ - - 10,298 - -
Excess (deficit) of revenues over expenditures $ 14 11 (10,215) 25 5,651 Beginning Fund Balance $ 4,539 4,553 4,564 (5,651) (5,651) Ending Fund Balance $ 4,553 4,564 (5,651) (5,626) -
City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
DUI Grant Fund (Fund 204)

Page 100 ends

Item # 12.

Actual Actual Preliminary Proposed Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Grant Revenues 120,424 114,041 57,237 500,000 500,000
Interest Earnings - - - - -
120,424 114,041 57,237 500,000 500,000
Expenditures:

EPA Site Assessment Expenditures 121,841 122,632 117,088 500,000 416,988 121,841 122,632 117,088 500,000 416,988
Excess (deficit) of revenues over expenditures (1,417) (8,591) (59,851) - 83,012 Beginning Fund Balance (13,153) (14,570) (23,161) (83,012) (83,012) Ending Fund Balance (14,570) (23,161) (83,012) (83,012) - City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
EPA Site Grant Fund (Fund 205)

Page 101 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Transfers In - General Fund $ - - - - -
Transfers In - Measure N Fund - - - - -
Other Revenues - Surplus Sales 131,249 14,585 4,995 - 46,085 Vehicle Abatement Funding - - - - 24,926
Interest Earnings 12 190 340 - 300
$ 131,261 14,775 5,335 - 71,311
Expenditures:

Capital Outlay - Vehicle Replacement $ - 110,842 - - 28,346 Towing Expenditures - - - - 7,021
Vehicle Lease Expenses 31,476 36,556 28,346 2,694 13,000 $ 31,476 147,398 28,346 2,694 41,346
Excess (deficit) of revenues over expenditures $ 99,785 (132,623) (23,011) (2,694) 29,965 Beginning Fund Balance $ 70,494 170,279 37,656 14,645 14,645 Ending Fund Balance $ 170,279 37,656 14,645 11,951 44,610 City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Vehicle Replacement Fund (Fund 225)

Page 102 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Other Revenues $ - - - - -
Interest Earnings 316 418 1,987 2,500 2,500
$ 316 418 1,987 2,500 2,500
Expenditures:

Park Expenditures $ - - - - -
$ - - - - -
Excess (deficit) of revenues over expenditures $ 316 418 1,987 2,500 2,500 Beginning Fund Balance $ 101,409 101,725 102,143 104,130 104,130 Ending Fund Balance $ 101,725 102,143 104,130 106,630 106,630 City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
E. Daniels Park Fund (Fund 450)

Page 103 ends

Item # 12.

Actual Actual Preliminary Adopted Budget Mid-Year Budget FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24
Revenues:

Other Revenues $ - - - - -
Interest Earnings 3 22 38 - -
$ 3 22 38 - -
Expenditures:

Police Expenditures $ - 4,895 - 2,145 2,183
Trf to Capital - 63420 - City Hall / GVPS Security - - - - - $ - 4,895 - 2,145 2,183
Excess (deficit) of revenues over expenditures $ 3 (4,873) 38 (2,145) (2,183) Beginning Fund Balance $ 7,015 7,018 2,145 2,183 2,183
Ending Fund Balance $ 7,018 2,145 2,183 38 -
City of Grass Valley
Fiscal Year 2023-24 Mid-Year Budget
Animal Shelter Fund (Fund 451)

Page 104 ends

Item # 12.

Grass Valley City CouncilApril 9, 2024

Grass Valley City Council
April 9, 2024