MINUTES OF
SPECIAL MEETING
July 21, 2026
CALL TO ORDER - PLEDGE OF ALLEGIANCE
Mayor Nagy called the meeting to order at 6:38 P.M. and conducted the pledge of allegiance.
ROLL CALL
Council Members: Melville – Marsigli – Mayor Pro Tem Ford – Mayor Nagy Staff present: City Manager Melanie Correa, Finance Director Jennifer Morrison, Economic & Community Development Director Jami Westervelt, Police Chief Ruben Chavez, City Attorney Olivia Clark, Recreation Manager Tiffany Vitorino, Public Works Director Alberto Villa-Leyva and HR Manager/Deputy Clerk Desirae Porras Council member Giles was absent.
APPROVAL OF AGENDA
Council member Melville made a motion to approve the agenda.
The motion was seconded by Mayor Pro Tem Ford and carried 4-0, with Council member Giles absent.
DECLARATIONS OF CONFLICT OF INTEREST
There were no declarations of conflict of interest.
PUBLIC COMMENT
There was no public comment.
ADMINISTRATIVE AGENDA
1. WORKSHOP: FY2026/2027 Financial Budget Workshop #2
1. Receive Staff Report
2. Receive Public Comment
3. Conduct workshop
Finance Director Morrison presented the staff report and provided the presentation.
There was no public comment.
City Manager Correa provided clarification on General Fund revenue and expenditures. There was a conversation related to use of General Fund Reserve, which was clarified that prior year deficiencies were taken from General Fund cash fund balance.
Council member Marsigli inquired whether funding was coming out of the UUT, to which City Manager Correa advised only due to Council approved projects throughout the year.
Finance Director Morrison further advised the approved FY25/26 budget did not incorporate any UUT transfers into the swimming pool, recreation or the Goman Center funds.
Council member Marsigli inquired clarification on the FY25/26 proposed budget compared to the FY25/26 mid-year budget, to which City Manager Correa advised transfer-outs are not complete until year end.
Mayor Pro Tem Ford inquired the revenue and expenditures for fire service, to which City Manager Correa advised there is no revenue and expenditures include Volunteer Fire Chief stipend and a small allocation to Workman’s Comp for Fire Volunteers.
Mayor Pro Tem Ford inquired if street sweeping should be allocated to the storm drain fund, to which City Manager Correa noted. There was a discussion related to the legislature surrounding storm drain fee increases, which require a ballot election.
Mayor Pro Tem Ford inquired the UUT Revenue, to which Finance Director Morrison advised the UUT revenue is $340k.
City Manager Correa further advised revenue for FY25/26 totals $351K.
Mayor Pro Tem Ford inquired on the sales tax revenue, to which Finance Director Morrison advised the sales tax revenue for FY25/26 is $425,124.43 and further shared revenues for June 2026 are still forthcoming.
Mayor Pro Tem Ford inquired whether that included Measure V taxes, to which City Manager Correa advised Measure V is in a separate fund of its own and stated the City does not include Measure V funds as general fund revenue.
Council member Marsigli inquired on the sunset date of the half-cent sales tax for public safety Council approved, to which City Manager Correa advised there is no sunset date.
City Manager Correa advised the total sales tax revenue for FY25/26, without May and June receipts, is $790,635.
Council member Marsigli inquired where maintenance funds come from when Recreation Manager Vitorino does maintenance work, to which Finance Director Morrison and City Manager Correa advised Recreation Manager Vitorino is allocated from several accounts, including general government building.
Council member Marsigli inquired why SDI is included, to which City Manager Correa advised the City pays their mandated employer-portion of Medicare and Social Security taxes.
There was discussion regarding the relabeling of the OASDI account to accurately reflect the payable associated.
Council member Melville recommended using UUT funds for as many opportunities available, including lifeguard salaries.
Mayor Nagy expressed opposition with using UUT funds for salaries.
Mayor Nagy advised of his meeting with City Manager Correa relating to the overview of the budget and the current City expense from credit card fees.
There was a discussion regarding credit card fees.
Mayor Nagy thanked staff for their hard work on the budget.
City Manager Correa informed Council the City is requesting any Capital Improvement projects out of any of the departments funded by the general fund.
Mayor Pro Tem Ford inquired whether the street sweeper infrastructure is in the Public Works account, to which City Manager Correa advised it is allocated out of refuse but will be switched so a portion is coming out of storm drain as per Council’s direction.
City Manager Correa informed Council to reach out to herself or Finance Director Morrison with any further updates to the budget, and relayed staff would bring the budget back for formal approval on August 4, 2026.
ADJOURNMENT
Mayor Nagy adjourned the meeting at 6:32 P.M.