MINUTES OF
SPECIAL MEETING
June 4, 2024
CALL TO ORDER - PLEDGE OF ALLEGIANCE
Mayor Nagy called the meeting to order at 5:06 P.M. and conducted the pledge of allegiance.
ROLL CALL
Council Members: Giles - Marsigli - Bonta - Mayor Nagy
Staff present: City Manager Soknirorn Than, Recreation Manager Tiffany Vitorino, Acting Police Chief Sammy Joseph, Finance Director Jenny Morrison, Fire Chief Pat Borrelli, Public Works Director Gary Ingram, Economic & Community Development Director Jami Westervelt and Administrative Services Director Melanie Correa Mayor Pro Tem Ford arrived at 5:07 P.M.
APPROVAL OF AGENDA
Council member Marsigli made a motion to approve the agenda.
The motion was seconded by Council member Bonta and carried 4-0.
DECLARATIONS OF CONFLICT OF INTEREST
There were no declarations of conflict of interest.
PUBLIC COMMENT
There was no public comment.
ADMINISTRATIVE AGENDA
1. WORKSHOP: Fiscal Year 2024-2025 Budget
1. Receive Staff Report and Presentation
2. Receive public comment
3. Conduct Workshop
City Manager Than introduced the budget presentation.
Finance Director Morrison provided the presentation on the FY2024-2025 budget.
Mayor Pro Tem Ford inquired clarification on the revenue acronyms, to which Finance Director Morrison and City Manager Than provided clarification on the names of the revenue streams and provided a brief overview of each.
Council member Bonta inquired whether the Water Fund revenue includes funding for the Loop Line project grant, to which Finance Director Morrison answered no.
Council member Marsigli inquired why there is a difference between budgeted revenue and total actual revenue, to which City Manager Than explained that reimbursement funding from capital improvement projects (CIPs) had not been fully billed nor received resulting in the shortfall. He further advised ongoing projects will roll over to FY25 budget.
There was further discussion related to the “Overall – Revenue and Fund Balance” slide during the presentation.
Council member Marsigli inquired what Prop 172 sales tax revenue was derived from, to which City Manager Than advised it is the sales tax for public safety out of the Education Revenue Augmentation Fund, and confirmed this revenue is received annually.
Mayor Pro Tem Ford questioned the amount for general sales and use tax, to which City Manager Than advised of the differences between the figures from FY2022 and FY2023 are due to May and June 2024 figures have not yet been received.
Council member Marsigli inquired whether the sales tax received includes Family Dollar, to which Finance Director Morrison advised since the store has not been open a full year, the stated figures are projections.
City Manager Than provided an overview of the FY2024/2025 Capital Improvement Projects. He presented a copy of the CIP list to Council.
Council member Marsigli provided her opinion on necessary repairs to the City’s sewer infrastructure, to which City Manager Than advised of his hesitancy towards making improvements without an updated Master Plan.
Council member Marsigli inquired the cost for the Master Plan, to which City Manager Than advised the cost to finish the document is $70K.
Mayor Pro Tem Ford inquired on updates to the head works at the WWTP. To which City Manager Than advised of the importance of the head work, and explained other issues related to pond capacity and the limits the aeration system the City currently implements has on processing.
Mayor Pro Tem Ford inquired where the water volume is coming from, to which City Manager Than advised industry. There was further discussion in regards to the water volume.
Mayor Pro Tem Ford inquired who will decide which updated WWTP aeration system the City will go to, to which City Manager Than advised of systems that are optional for the City to go with, and stated the Council would be involved in the decision.
Council member Giles inquired the likelihood the City can keep the plant status quo with minor updates, to which City Manager Than advised he has reached out to other cities to see how they are performing and further advised there are agencies that have successfully proven to the state they did not have to go to secondary treatment.
Mayor Nagy advised of the last report of 8’ of sludge in the ponds, to which Public Works Director Ingram advised the ponds are only 6 ft. deep.
Public Works Director Ingram advised the department will sludge judge the ponds this summer and further advised the department will be investing in the right equipment to help assist with breaking down the sludge.
Council member Giles inquired whether the City should invest more into the electrical, to which Public Works Director Ingram advised he contacted the electrical contractor today for retro fitting or fixing the broken disconnects for the aerators. He further advised restoring the plant to maximum treatment capacity is the City’s goal.
Council member Marsigli inquired whether the City is going a full year with purchasing two aerators, to which City Manager Than advised the City could do more aerators and further advised the City will do a mid-year budget cycle to gauge expenditures.
Council member Marsigli inquired whether the funds for resurfacing and restriping the Airport runway are FAA or City funds, to which City Manager Than advised the majority is FAA funds. City Manager Than further advised the City’s matching fee is 15% which will come from Airport fund.
Mayor Nagy inquired whether the match could come from Measure V Alt Modes, to which City Manager Than advised Regional Measure V could be used if applied for.
Mayor Nagy inquired where the Recreation expenditures will be sourced, to which City Manager Than advised either the General Fund or UUT would be applicable.
Mayor Nagy advised UUT funds are not to be used for salaries, to which City Manager Than advised of the impact of using the General Fund instead of UUT.
Council member Marsigli inquired if allocating less money towards Reserves would relieve monies in the General fund, to which City Manager Than affirmed.
Mayor Pro Tem Ford suggested the FY25 Reserve allocation be taken from the Genenral Fund Reserve account, to stay on track to reach the City’s ideal reserve rate of 33%.
City Manager Than affirmed that is a possibility, but that he was seeking more information on how the City viewed that account and its balance.
Council member Marsigli inquired why the City is not using the money invested in LAIF, to which City Manager Than advised those funds are comprised of the fund balances reviewed during the presentation.
Council member Marsigli inquired the amount the City will save on contractors, to which City Manager Than answered an estimated $172K.
Mayor Pro Tem Ford inquired where the 15% refuse franchise fee will be deposited into, to which City Manager Than advised it will go into its own refuse fund.
Council member Marsigli voiced her concerns with the walking path at Schmidt Park and advised it needs to be repaired, to which City Manager Than inquired whether it is ok to adopt the budget as is and staff can bring the item back to Council.
Council member Marsigli inquired whether the City could use the Measure V Alt. funds for walking path repairs, to which Mayor Nagy affirmed.
Public Works Director Ingram advised he has received three repair estimates for the pathway and further advised he will bring this item back to Council.
Collectively, Council directed staff to transfer Recreation Department payroll costs from General Fund, as opposed to from UUT, and to lower contributions in the Reserve funds to accommodate the transaction.
ADJOURNMENT
Mayor Nagy adjourned the meeting at 6:21 P.M.