Healdsburg City Council
November 17, 2025

Healdsburg City Council
Meeting
November 17, 2025
City Manager’s Report
City Council, November 17, 2025
Public Comment
on Non Agenda
Items
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Comentarios del
público sobre
puntos no
incluidos en la
agenda de la
reunión
3 Adoption of the 2025 California Building
Standards Code and the 2024 International
Property Maintenance Code and local
amendments.

City Council
November 3, 2025
Recommended
Action
5 Repeal chapter 15.04 of the Healdsburg Municipal Code as currently in effect and pass an ordinance amending Chapter

15.04 of the Healdsburg Municipal Code and Adopt by reference the 2025 California Building Standards Code Title 24 which includes: the California Administrative Code Part 1, the California Building Code Part 2 Volumes 1 & 2 including Appendix Chapter B and J as amended, the California Residential Code Part 2.5 as amended, the California Electrical Code Part 3 and Tables as amended, the California Mechanical Code Part 4 and Standards as amended, the California Plumbing Code Part 5 and Standards as amended, the California Energy Code Part 6, the California Wildland-Urban Interface Code Part 7, the California Historical Code Part 8, the California Fire Code Part 9 as amended, the California Existing Building Code Part 10 as amended, The California Green Building Standards Code Part 11 as amended, the California Referenced Standards Code Part 12, and the 2024 International Property Maintenance Code as amended.

Assembly Bill 130
• Signed by the Governor and went into effect June
30, 2025.
• Limits local amendments affecting residential
projects to only those filed with the California
Building Standards Commission and in effect by
September 30, 2025.
• Extends residential building standards to 2031.
6 Purpose for
Ordinance
• The State adopts the Building Standards Code on a
triannual cycle, but local adoption of the 2025
California Building Standards Code and local
amendments are also required to provide adequate
protection to our community.
• City Council introduced ordinance on November 3rd.

Proposed
Changes
• HMC 15.04.020 California Building Code
Amendment – Replace reference to the 2022 CFC
with the 2025 CFC.
• HMC 15.04.030 California Residential Code
Amendment – Replace all references to Appendix AX
with Appendix CI.
• HMC 15.04.070 California Existing Building Code
Amendments – Replace Section 116 with Section
115.
8 Recommended
Action
9 Repeal chapter 15.04 of the Healdsburg Municipal Code as currently in effect and pass an ordinance amending Chapter

15.04 of the Healdsburg Municipal Code and Adopt by reference the 2025 California Building Standards Code Title 24 which includes: the California Administrative Code Part 1, the California Building Code Part 2 Volumes 1 & 2 including Appendix Chapter B and J as amended, the California
Residential Code Part 2.5 as amended, the California Electrical Code Part 3 and Tables as amended, the California Mechanical Code Part 4 and Standards as amended, the California Plumbing Code Part 5 and Standards as amended, the California Energy Code Part 6, the California Wildland-Urban Interface Code Part 7, the California Historical Code Part 8, the California Fire Code Part 9 as amended, the California Existing Building Code Part 10 as amended, The California Green Building Standards Code Part 11 as amended, the California Referenced Standards Code Part 12, and the 2024 International Property Maintenance Code as amended.

Questions
Public
Comment
Comentarios
del público
Inclusionary Housing Ordinance:

Amending Healdsburg Municipal Code Title
20 to Eliminate the In-Lieu Fee for Projects
Under Five Units
City Council
November 17, 2025
Recommended
Action
13 Introduce for first reading by title only, waiving further reading of the text, an ordinance amending Section

20.20.030 of the Healdsburg Municipal Code (Inclusionary Housing Ordinance) to eliminate the in-lieu fee or alternate compliance requirements for projects with fewer than five units.

Background
• 1998 (Ordinance 950): Established inclusionary housing requirements • 2019 (Ordinance 22-2019):
• Increased set-aside to 20%
• Required concurrent construction of affordable units
• Created an in-lieu fee option for ≤4-unit projects
• 2024 (Ordinance 08-2024):
 Clarified applicability
 50% fee reduction for SB 9 lot splits
 Indexed fees to inflation
 On August 18, 2025, the City Council reviewed the IHO and directed staff to eliminate the in-lieu fee or alternative compliance requirement for projects with fewer than five units, while maintaining the existing provisions for fractional units and the current five-unit applicability threshold.  On October 28, 2025, the Planning Commission held a duly noticed public hearing to consider the proposed amendment and voted to recommend that the City Council adopt the ordinance as presented.
14 Current
Ordinance
Overview
(HMC 20.20.030)
15 Project Type Requirement
≥5 Units 20% affordable on-site
≤4 Units May pay in-lieu fee
Fractional Units Round up or pay proportionate
fee
Threshold (5 vs. 10 units) 20% requirement applies at 5 units
Proposed Ordinance
Amendment
Overview
(HMC 20.20.030)
• August 18, 2028: Council Direction to eliminate in-lieu fee option ≤4 units and no change to fractional units or 5-unit threshold. • Goal: Support housing production by removing disproportionate costs for small infill projects.
• Key Rationale:
 Small builders/homeowners face high per-unit costs.
 In-lieu fee can represent 20–30% of total City fees.
 Adds ~$20,000–$25,000 per small home.
 Eliminating it removes a key barrier to “missing middle” housing.  Eliminating it makes small infill projects more feasible 16 • Achieves City Council FY 25-26 Goal: Update in-lieu fee for smaller projects including the definition of smaller projects to decrease cost barriers for small infill housing projects.

Summary of
Ordinance
Changes
17 • Clarifies applicability to projects of five or more dwelling units. • Exempts residential additions and replacement units.
• Eliminates the in-lieu fee option for projects with four or fewer units.

Fiscal Impact
• Since 2019: $890,120 collected in in-lieu fees.
• Approx. 30% (~$267,000) from small projects.
• Short-term reduction in fee revenue:
• May increase small-scale housing production.
• No new City expenditures required other than staff resources. 18 Recommended
Action
19 Introduce for first reading by title only, waiving further reading of the text, an ordinance amending Section

20.20.030 of the Healdsburg Municipal Code (Inclusionary Housing Ordinance) to eliminate the in-lieu fee or alternate compliance requirements for projects with fewer than five units.

Questions
Public
Comment
Comentarios
del público
State Housing Legislation LUC Updates
City Council
November 17, 2025
Recommended
Action
25 1. Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Healdsburg Municipal Code Title 20, Section 20.20.010: Accessory Dwelling Units and Junior Accessory Dwelling Units and Section 20.28.310 Definitions to reflect changes in State ADU law; and

2. Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Healdsburg Municipal Code Title 20, Section 20.20.035: Affordable Housing Incentives to reflect changes in State Density Bonus law.

Background
• Housing Element adopted on May 1, 2023, and certified by the State on June 29, 2023.
• Includes a program calling for amendments to the City’s Land Use Code that expand housing development capacity and reduce constraints, including increasing density.
• September 2, 2025, staff provided an update to the City Council on State housing legislation.
• September 23, 2025, Planning Commission Workshop to review draft Ordinances for SB 9, SB 684 & 1123, Accessory Dwelling Unit and Density Bonus updates.
• SB 9, SB 684 & 1123 have been tentatively moved to the December 9th agenda.
• October 28, 2025, Planning Commission Hearing to review draft ordinances for Accessory Dwelling Unit and Density Bonus updates. • Adopted a resolution recommending the City Council adopt an Ordinance approving these updates, and that the Council consider eliminating impact fees associated with ADU’s greater than 850 square feet up to the maximum of 1,200 square feet.
26 Senate Bill 1211
Accessory Dwelling Unit Law
• Effective January 1, 2025
• Expands opportunities for constructing Accessory Dwelling Units (ADUs) on properties zoned for multi-family residential. • Prior ADU law allowed for 2 detached ADUs per lot with an existing multifamily dwelling. SB 1211 allows up to 8
detached ADUs, provided the total number doesn’t exceed the number of pre-existing units on the property.
• A vacant parcel may include up to 2 detached ADUs with a proposed multifamily dwelling.
• Prohibits requiring replacement of off-street parking spaces if an uncovered parking space is demolished in conjunction with the construction of, or is converted to, an ADU.
27 Additional ADU
Updates
Further amendments include:
• Additional incentives to allow JADU’s that include a
bathroom.
• Removal of Historic District standards for the
construction of an ADU/JADU.
• Removal of deed restriction requirement.
• Clarifies that impact fees are exempt from units of 850 square feet or less.
• Clarifies process streamlining timelines for ADU and
JADU approvals.
• Amends definitions for ADU and JADU.
28 Assembly Bill 1287
State Density Bonus Law
• Effective January 1, 2024.
• Stackable Density Bonuses: Allows developers to receive an additional density bonus ranging from 20% to 50% on top of the existing maximum of 50% if they provide more affordable units than previously required. By meeting the affordable housing requirements for both the initial maximum density bonus and the additional “stackable” bonus under AB 1287, a project can achieve a total density bonus of 100%.
• Expanded Incentives and Concessions: Increases the number of incentives or concessions available to qualifying projects from 2 to 4. • Clarification of Density Definitions: AB 1287 redefines "maximum allowable residential density" to mean the highest number of units permitted under applicable zoning, specific plans, or general plans. • Applicability to Various Ownership Models: The law applies to both rental and for-sale housing developments, including alternative ownership structures like tenancies in common and community land trusts, broadening the scope of projects that can benefit from the enhanced density bonuses.

Next Steps
Schedule for adoption of Accessory Dwelling Units and Density Bonus ordinances:
• Planning Commission Hearing October 28th
• City Council 1st Reading November 17th
• City Council 2nd Reading December 15th (tentative)
Schedule for adoption of SB9 and SB 684 & 1123 ordinances:
• Planning Commission Hearing December 9th (tentative)
• City Council 1st Reading January 20th (tentative)
• City Council 2nd Reading February 16th (tentative)
Recommended
Action

1. Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Healdsburg Municipal Code Title 20, Section 20.20.010: Accessory Dwelling Units and Junior Accessory Dwelling Units and Section 20.28.310 Definitions to reflect changes in State ADU law; and

2. Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Healdsburg Municipal Code Title 20, Section 20.20.035: Affordable Housing
Incentives to reflect changes in State Density Bonus law. 31 Questions
Public
Comment
Comentarios
del público
First Quarter Financial
Update FY 2025-2026
Finance Department
November 17, 2025
Proposed
Action
Receive a presentation on the First Quarter Financial
Update and adopt a resolution approving
amendments to the Fiscal Year 2025-26 Budget.

General Fund
Revenues
Revenue
Activity Through
September 30,
2025
Total Budget % Received Proposed
Amendment
Property Tax $ - $ 3,370,784 0%
Property Transfer Tax $ 45,870 $ 135,000 34%
Vehicle License Fee Swap $ - $ 2,118,836 0%
Sales Tax $ 908,108 $ 6,000,333 15% $ (317,408)
Business License Tax $ 47,596 $ 265,000 18%
Cannabis Business Tax $ 34,873 $ - NA $ 137,000
Franchise Fees $ 150,257 $ 958,311 16% $ (75,000)
TOT $ 426,044 $ 1,537,959 28%
Sales Tax - PSAF $ 47,104 $ 192,186 25% $ (6,296)
Development Fees and Permits $ 668,734 $ 1,157,272 58% $ 525,000 Intergovernmental Revenue $ 88,626 $ 347,500 26% $ 35,000 Charges for Services $ 158,010 $ 1,025,971 15% $ 227,985 Unrestricted Interest $ 17,753 $ 205,111 9%
Restricted Interest $ 55,481 $ 91,287 61% $ 99,961
Rent Received $ 22,224 $ 250,916 9%
Misc Fees and Charges $ 78,138 $ 241,961 32%
Fines and Collections $ 4,097 $ 47,000 9%
Transfers In $ 273,395 $ 1,343,579 20%
TOTAL $ 3,026,310 $ 19,289,006 16% $ 626,242
General Fund
Expenses
Expense By Department
Activity Through
September 30,
2025
Total Budget Amount
Remaining % Expended Proposed
Amendment
City Council $ 71,051 $ 280,954 $ 209,903 25%
Legal Services $ 272,355 $ 450,000 $ 177,645 61% $ 250,000 City Manager's Office $ 455,516 $ 2,523,997 $ 2,068,481 18% Finance $ 626,021 $ 2,527,546 $ 1,901,525 25%
Planning $ 630,124 $ 2,300,629 $ 1,670,505 27% $ 116,000 Police $ 2,083,062 $ 9,026,954 $ 6,943,892 23%
Fire $ 1,487,736 $ 5,213,364 $ 3,725,628 29% $ 222,985
Public Works $ 24,211 $ 47,550 $ 23,339 51% $ 25,000
Non Departmental $ (829,404) $ (3,073,939) $ (2,244,535) 27% $ 750,000 TOTAL $ 4,820,672 $ 19,297,055 $ 14,476,383 25% $ 1,363,985 General Fund
Balance
FY 24-25 FY 25-26 FY 25-26
Unaudited Adopted Revised
Actuals Budget Budget
Beginning Fund Balance $ 12,109,679 $ 12,830,295 $ 12,822,245 Revenue 20,174,974 19,289,006 19,915,248
Expenditure 18,246,475 19,297,055 19,911,040
One-Time Expenditure 1,207,883 - 750,000
Estimated Ending Fund Balance $ 12,830,295 $ 12,822,245 $ 12,076,453 Change in Ending Fund Balance $ 720,616 $ (8,049) $ (745,792) Components of Fund Balance
Reserve Policy (30%) $ 5,473,942 $ 5,789,117 $ 5,973,312 Pension Stabilization 5,312,978 5,404,265 5,504,226
Unallocated Fund Balance $ 2,043,374 $ 1,628,863 $ 598,915 % of annual expenditures 41.2% 38.4% 33.0%
General Fund - Fund Balance
Community
Services
Revenue
Revenue
Activity Through
September 30,
2025
Total Budget % Received Proposed
Amendment
Transient Occupancy Tax $ 2,130,219 $ 7,689,796 28% $ - Other Revenue $ 460 $ - N/A $ 36,170
St Grants $ 73,900 $ 220,000 34% $ -
Fees & Charges $ 509 $ 2,500 20% $ -
Admission and Passes $ 12,455 $ 28,000 44% $ -
Program Revenue $ 51,975 $ 291,500 18% $ -
Contracted Program Revenue $ 28,041 $ 105,000 27% $ -
Special Events $ 6,858 $ 75,000 9% $ -
Event Permits $ 1,310 $ 20,000 7% $ -
Advertising $ 420 $ - N/A $ -
Program Sponsorships $ 325 $ 50,500 1% $ -
Reimbursement for Services $ 9,174 $ 49,500 19% $ -
Field Rental $ - $ 5,750 0% $ -
Facility Rental $ 9,091 $ 31,675 29% $ -
Facility Long term Lease $ 8,253 $ 34,425 24% $ -
Interest Income $ 6,187 $ 217,775 3% $ 9,810
Contributions & Donations $ 61 $ 5,500 1% $ -
TOTAL $ 2,339,238 $ 8,826,921 27% $ 45,980
Community
Services
Expenses
Expense By Program
Activity Through
September 30,
2025
Total Budget % Expended Proposed
Amendment
General Administration $ 1,181,061 $ 4,702,585 25%
Recreation Programs $ 170,341 $ 396,246 43%
ASES After School Program $ 81,758 $ 304,250 27%
Community Center $ 83,494 $ 245,274 34% $ 35,968
Senior Services $ 84,922 $ 323,669 26% $ 18,500
Parks and Trails $ 153,009 $ 674,268 23% $ 42,641
Open Space $ 660 $ 60,500 1%
School Facility Maintenance $ 10,903 $ 49,500 22%
Swim Center $ 85,087 $ 141,450 60%
Arts and Culture $ 10,242 $ 77,500 13%
Contracted Facility Operations $ 29,328 $ 67,529 43% $ 36,170 Special Events $ 79,593 $ 249,000 32%
Non Departmental $ 244,252 $ 2,264,448 11%
TOTAL $ 2,214,650 $ 9,556,219 23% $ 133,279
Community
Services Fund
Balance
FY 24-25 FY 25-26 FY 25-26
Unaudited Adopted Revised
Actuals Budget Budget
Beginning Fund Balance $ 4,104,198 $ 4,716,133 $ 4,716,133 Revenue 8,647,594 8,826,921 8,872,901
Expenditure - Operations 7,991,482 8,430,508 8,563,787
Expenditure - Capital 44,177 1,160,265 1,160,265
Estimated Ending Fund Balance $ 4,716,133 $ 3,952,281 $ 3,864,982 Change in Ending Fund Balance $ 611,935 $ (763,852) $ (851,151) Components of Fund Balance
Reserve Policy (30%) $ 2,397,445 $ 2,529,153 $ 2,569,136 Pension Stabilization 526,823 535,781 545,591
Unallocated Fund Balance $ 1,791,866 $ 887,347 $ 750,255 % of annual expenditures 52.4% 40.5% 38.8%
Community Services Fund Balance
Water Fund
Balance
FY 24-25 FY 25-26 FY 25-26
Unaudited Adopted Revised
Actuals Budget Budget
Beginning Working Capital $ 3,253,755 $ 5,007,926 $ 5,007,926 Revenue 8,452,516 8,362,182 8,661,416
Expenditure - Operations 6,204,208 6,564,429 6,647,192
Expenditure - Capital 494,136 2,669,754 2,669,754
Estimated Ending Working Capita$ 5,007,926 $ 4,135,925 $ 4,352,396 Change in Working Capital $ 1,754,171 $ (872,001) $ (655,530) Components of Fund Balance
Reserve Policy (25%) $ 1,551,052 $ 1,641,107 $ 1,661,798 Rate Stabilization Reserve 1,000,000 1,000,000 1,000,000 Pension Stabilization 608,917 619,379 630,836
Remaining Working Capital 1,847,957 875,439 1,059,762
Total $ 5,007,926 $ 4,135,925 $ 4,352,396
Water Fund Balance
Wastewater
Fund Balance
FY 24-25 FY 25-26 FY 25-26
Unaudited Adopted Revised
Actuals Budget Budget
Beginning Working Capital $ 2,973,137 $ 4,453,957 $ 4,453,957 Revenue 9,723,480 10,724,841 10,758,638
Expenditure - Operations 8,007,444 8,561,097 8,726,646
Expenditure - Capital 235,216 1,900,012 1,900,012
Estimated Ending Working Capital $ 4,453,957 $ 4,717,689 $ 4,585,937 Change in Working Capital $ 1,480,820 $ 263,732 $ 131,980 Components of Fund Balance
Reserve Policy (25%) $ 2,001,861 $ 2,140,274 $ 2,181,662 Rate Stabilization Reserve 1,000,000 1,000,000 1,000,000 Pension Stabilization 733,308 745,907 759,704
Remaining Working Capital 718,789 831,508 644,572
Total $ 4,453,957 $ 4,717,689 $ 4,585,937
Wastewater Fund Balance
Electric Fund
Balance
FY 24-25 FY 25-26 FY 25-26
Unaudited Adopted Revised
Actuals Budget Budget
Beginning Working Capital $ 15,230,831 $ 20,147,886 $ 20,147,886 Revenue 20,200,118 17,746,367 17,766,071
Expenditure - Operations 15,074,978 16,335,371 16,335,371 Expenditure - Capital 208,084 6,124,637 6,124,637
Estimated Ending Working Capital $ 20,147,886 $ 15,434,245 $ 15,453,949 Change in Working Capital $ 4,917,055 $ (4,713,641) $ (4,693,937) Components of Fund Balance
Reserve Policy (50%) $ 7,537,489 $ 8,167,686 $ 8,167,686 Reserve Policy ($4 Million Capital) 4,000,000 4,000,000 4,000,000 Pension Stabilization 1,047,292 1,065,286 1,084,990
Remaining Working Capital 7,563,105 2,201,274 2,201,274 Total $ 20,147,886 $ 15,434,245 $ 15,453,949
Electric Fund Balance
Proposed
Action
Adopt a resolution approving amendments to the
Fiscal Year 2025-26 Budget.

Discussion, Feedback,
Questions, and Direction
Public
Comment
Comentarios
del público
2025 California Fire Code and
Wildland-Urban Interface (WUI)
Code Adoption
Ordinance Update and First Reading
City Council, November 17, 2025
Recommended Actions for Tonight
 Conduct first reading (by title only) of Ordinance
adopting the 2025 California Fire Code and 2025 California Wildland Urban Interface (WUI) Code, with local
amendments.
 Repeal Ordinance No. 1218 to align with the updated
state code cycle.

Code
Adoption
Process
• This is a similar process to the Building Code
update currently underway.
• Under AB 130 (2025 Budget-trailer Bill), local
fire codes are intended to remain largely status
quo to maintain consistency statewide.
• The City’s adoption follows the triennial code
cycle directed by the State of California.

Collaborative
Development
Process
 Sonoma County Fire Marshals began meeting months ago to review and align local ordinances.
 The goal is to maintain regional consistency and minimize variations between jurisdictions.
 The City of Healdsburg’s local amendments have been reviewed, confirmed, and remain consistent with countywide
recommendations.

What
Changed?
• Not Much – the bulk of the requirements reman
intact.
• The new WUI Code consolidates prior fire and
building code chapters.
• Code section numbers and references have
been updated to reflect the new 2025 code
cycle.
• Local ordinance remains the same as previous
code cycle.

Recommended Actions for Tonight
 Conduct first reading (by title only) of Ordinance
adopting the 2025 California Fire Code and 2025 California Wildland Urban Interface (WUI) Code, with local
amendments.
 Repeal Ordinance No. 1218 to align with the updated
state code cycle.

Questions ?
Public
Comment
Comentarios
del público
Revenue Options
Infrastructure & Road Repair
Informational Item
City Council, November 17, 2025

BACKGROUND
City Recognizes Funding Gaps
- Streets (current PCI 69)
- Facilities
FY 2025-26 Adopted City Council Goal
- Explore Revenue for Infrastructure & Road Repair
Annual Investment PCI with Investment
$0.00 60
$1.75 million 69
$3 million 74
$4.8 million 80
$1.44 million* 67
*Current 5-year CIP $7.2 million

OPTIONS
• Taxes
• Debt Issuance
• Other - Charges, Fees, & Rates
TAXES –General Considerations

GENERAL TAX
• 50% + 1 vote
• At an election where City Council seats are on the ballot

SPECIAL TAX
• Two-thirds (66.67%)
• May be taken to the voters at any time
SPECIAL TAX: VOTER INITIATIVE
• 50% + 1 vote
• May be taken to the voters at any time
TAXES –Annual Revenue Potential

TYPE IMPLEMENTATION CONSIDERATIONS REVENUE ESTIMATES
Transactions & Use Tax - Attorney General approval (unless sunset extended) Half-Cent $2.7 million Business License Tax - Current business/financial environment - Administrative support
by 50% $132,500
Real Property Transfer
Tax
- Must become a Charter City (50% +1)
- Push back from real estate community
1% ($10
per $1,000)
$2.5 million
Utility Users Tax (UUT) - Rate varies per person/per household 1% $300,000 Transient Occupancy
Tax
- Pushback from local hotels
-Generally supported by voters
- Healdsburg - highest rate in the County
1% $770,000
Cannabis Tax - City Council has authority up to 8%
- Increase may drive customers to other cities Double $137,000 Parcel Tax - Per parcel flat tax, based on 4,920 parcels $50 $246,000 Assessment Districts - Requires property owner approval - May take a year or more to implement Varies Varies

DEBT ISSUANCE

TYPE IMPLEMENTATION CONSIDERATIONS
General Obligation Bonds
(GO Bonds)
- Intended to fund specific projects
- 2/3 voter approval
-Taken to voters at any time
- Example: $20 million over 30 years @4% interest rate
- $29 per $100,000 AV ($290 per $1 million AV) annually for the term of the loan
Lease Revenue Bonds
- Intended to fund specific projects
- Does not require voter approval
- Borrowing limited to the insured value of essential City assets - Repayment from the General Fund
- Example: $20 million over 30 years @ 4% interest rate - Annual debt service - $1.2 million
OTHER – Charges, Fees, Rates

TYPE IMPLEMENTATION CONSIDERATIONS
Charges, Fees, Rates
-Generally, not considered a tax
- Majority of the governing board for approval
- Be reasonably related to cost-of-service or impact
-Typical to conduct cost-of-service or nexus study
- Study documents the maximum amount to legally charge
- City Council discretion to set rates lower based on cost recovery philosophy Imposed on an individual for a service the person chooses to receive Recommended
Council Action
None
Informational Item Only
Questions
Public
Comment
Comentarios
del público