City of Hollister
City Council Agenda
Special Meeting
Monday, June 8, 2026, 5:00 p.m.
City Council Chamber, City Hall
375 Fifth Street, Hollister, CA 95023
Roxanne Stephens, Mayor Ana Cortez, City Manager Rudy Picha, Council Member, District 1 Jennifer P. Thompson, City Attorney Rolan Resendiz, Council Member, District 2
Dolores Morales, Council Member, District 3
Priscilla de Anda, Council Member, District 4
Gordon Machado, City Treasurer
As of January 1, 2023, the Levine Act (Government Code Section 84308) applies to City Council proceedings involving a license, permit, or other entitlement for use.
Pursuant to Government Code Section 84308, no Council Member shall accept, solicit, or direct a contribution of more than $500 from any party or their agent, or from any participant or their agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the City or for 12 months after a final decision is rendered in that proceeding. Any Council Member who has received a contribution of more than $500 within the preceding 12 months from a party or their agent, or from a participant or their agent, shall disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use their official position to influence the decision.
Pursuant to Government Code Section 84308(d), any party to a covered proceeding before the Council is required, and any participant to such a proceeding is strongly urged, to disclose on the record of the proceeding any contribution, including aggregated contributions, of more than $500 made within the preceding 12 months by them or their agent to any Council Member. The disclosure must include the name of the party or participant and any other person making the contribution, if any; the name of the recipient; the amount of the contribution; and the date the contribution was made.
The disclosure shall occur in the manner required under Government Code Section 84308 and any applicable state or local regulations, opinions, or policies. No party or their agent, and no participant or their agent, shall make a contribution of more than $500 to any Council Member during the proceeding or for 12 months after a final decision is rendered in that proceeding.
The foregoing statements do not constitute legal advice, and parties and participants are urged to consult with their own legal counsel regarding the requirements of the law.
NOTICE TO PUBLIC
Persons who wish to address the City Council are asked to complete a speaker’s card and give it to the City Clerk before addressing the City Council. Those who wish to address the City Council on an agenda item will be heard when the presiding officer calls for comments from the audience. City related items not on the agenda will be heard under the Public Input section of the agenda. Following
recognition, persons desiring to speak are requested to advance to the podium and state their name and address. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9. After hearing audience comments, the public portion of the meeting will be closed, and the matter brought to the City Council for discussion.
Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)
Requests to make presentations to the City Council should be submitted to the City Clerk’s Office at least ten days before the City Council meeting. It is customary for City staff members to review such matters before the formal presentation so that the City Council may have the benefit of all available data. PowerPoint presentations must be presented to the City Clerk by noon on the day of the City Council meeting.
The public may watch the meeting via live stream at:
City of Hollister Website
https://pub-hollister.escribemeetings.com/
Community Media Access Partnership (CMAP):
https://www.youtube.com/@CMAPTVGovHollister
City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489
Public Participation:
The public may attend meetings.
NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)
If you wish to make a public comment remotely during the meeting, please use the zoom registration link below:
https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification of 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].
Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)
City of Hollister City Council Meeting
Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or recorded or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.
To access written translation during the meeting, please click this link:
Para acceder a la traducción durante la reunión, por favor haga clic en el enlace:
https://attend.wordly.ai/join/NLJC-7137
1.CALL TO ORDER
2.PLEDGE OF ALLEGIANCE
3.ROLL CALL
4.COUNCIL BUSINESS
4.1 FY2026-2027 BUDGET – GENERAL FUND INTRODUCTION, TEN-YEAR
FORECAST, GENERAL FUND RESERVES
COUNCIL NEXT STEPS:
Provide direction on General Fund Reserve goals.
5.ADJOURNMENT
6.VERIFICATION OF AGENDA POSTING
The agenda for the City Council of the City of Hollister Special Meeting of June 8, 2026, was posted on the bulletin board at City Hall on Friday, June 5, 2026, per Government Code Section 54954.2.
City of Hollister City Council Meeting
PUBLIC PARTICIPATION NOTICE
The public may attend meetings in person or watch meetings via live stream at:
City of Hollister Website:
https://hollister.ca.gov/government/agendas___minutes.php
Community Media Access Partnership (CMAP):
http://cmaptv.com/government/
City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489
NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)
If you wish to make a public comment remotely during the meeting, please use the Zoom registration link below:
https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].
Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)
Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or videotaped or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.
To access written translation during the meeting, please scan the QR Code or click this link | Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace:
https://attend.wordly.ai/join/NLJC-7137
Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir
Use a headset on your phone for audio or read the transcript on your device. | Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo.
STAFF REPORT
HOLLISTER CITY COUNCIL
MEETING DATE: June 8, 2026
REPORT # City Manager-2026-23
AGENDA ITEM: FY2026-2027 BUDGET – GENERAL FUND INTRODUCTION, TEN-
YEAR FORECAST, AND GENERAL FUND RESERVES
DEPARTMENT: City Manager
DEPARTMENT HEAD: Ana Cortez, City Manager
COUNCIL NEXT STEPS: Provide direction on General Fund Reserve goals.
DISCUSSION:
The Fiscal Year 2026-27 Preliminary Budget reflects the most current information available regarding General Fund revenues and expenditures. As with any preliminary budget, revenue projections and expenditure estimates will continue to be refined as additional economic data, year-end financial results, and updated departmental needs become available. The information used reflects data from June 4, 2026.
To better understand the long-term effect of present decisions, a ten-year forecast is attached. Based on current assumptions, General Fund revenues are projected to increase; however, ongoing economic uncertainties, including inflationary press ures, potential changes in consumer spending, and broader geopolitical conditions, may impact future revenue performance. Expenditure projections include anticipated personnel costs, contractual obligations, operating expenses, and service level requirements necessary to maintain City operations.
Under the first scenario, the City maintains a reserve level equal to 20% of annual General Fund expenditures. This target aligns with recognized best practices for municipal financial management and provides a financial cushion to address unforeseen emergencies, economic downturns, revenue shortfalls, and unexpected operating costs. This scenario is presented as directed by Council.
The second scenario assumes no minimum reserve requirement, resulting in a 0% reserve target. While this approach would make additional funds available for current operations, capital needs, or service enhancements, it would significantly reduce the City's ability to absorb unexpected financial challenges. Without reserves, the City would have limited capacity to respond to emergencies, economic disruptions, or revenue fluctuations without implementing service reductions, delaying projects, or identifying alternative funding sources.
The reserve scenarios are intended to provide policy guidance and illustrate the financial implications of different reserve levels rather than represent specific recommendations at this stage. These discussions will assist the Council in determining an appropriate reserve policy that balances current se rvice needs with long-term fiscal sustainability.
FISCAL IMPACT:
In developing the preliminary budget projections, the City Manager assumed a 0% reserve level to determine the expenditure reductions necessary to balance the General Fund. While maintaining reserves is an important component of fiscal sustainability, this assumption provides a realistic basis for evaluating the magnitude of budget adjustments required in the near term.
For FY 2025–26, the City allocated costs using historical budgeting practices. In January 2026, the City received the Cost Allocation Plan for FY 2026–27, which was developed through a comprehensive analysis to determine appropriate, defensible, and supportable costs incurred by the General Fund in providing services to the City’s enterprise and component operations, including Water, Sewer, Airport, and other funds.
To meet audit compliance, the City finalized the official Cost Allocation Plan in January 2026. This Plan, implemented in FY 2026–27, ensures the budget reflects payroll costs more accurately and equitably across all City operations. While this methodology improves the accuracy and transparency of cost distribution, it also results in a corresponding increase in General Fund expenditures, as costs previously absorbed by the General Fund are now more precisely identified and allocated.
Using this methodology, the FY 2026–27 budget includes approximately $56 million in General Fund expenditures, providing a more accurate reflection of the true cost of delivering City services.
Salary and Benefits Cost Reductions
Workforce reduction of 17 to 25 positions. The City Manager has preliminarily identified potential reductions of administrative, unrepresented, and utilities (water and stormwater) positions.
Although water operations are typically accounted for as an Enterprise Fund, the Water Fund is currently experiencing a significant deficit. The financial condition of the Water Fund will be discussed in greater detail at future meetings.
Stormwater has historically operated as a cost center and has supported staffing costs.
However, because Stormwater has not been legally established as a Utility, the City is currently unable to collect revenues to support those costs. For purposes of balancing the General Fund, unfunded utility-related costs are being treated as General Fund expenses.
Furloughs
Implementation of an eight-hour monthly furlough program for all non-essential employees. This measure is intended to generate ongoing personnel cost savings while minimizing direct impacts on core public safety and critical service functions.
Benefits and Cost-of-Living Adjustments
Proposed benefit reductions may include, but are not limited to, longevity pay, bilingual pay, certification incentives, event pay, and holiday closure pay. In addition, the General Fund projections do not include funding for cost-of-living adjustments (COLAs) during the
budget period.
Technology Expenditures
General Fund-supported technology expenditures would be reduced by approximately 50%. This reduction would require the prioritization of critical technology investments and may result in the deferral of equipment replacements, software upgrades, and other technology initiatives.
Capital Improvement Program (CIP)
The proposed General Fund budget does not include funding for major capital improvement projects. As a result, large-scale infrastructure investments would need to be deferred, funded through alternative revenue sources, or considered as part of future budget discussions.
Revenue-Generating Priorities: Economic Development and Beautification While the City Council has previously expressed support for investments in economic development and beautification initiatives intended to enhance revenues and community vitality, the current General Fund condition does not support allocating resources to these priorities. Funding for such initiatives may be reconsidered as the City’s fiscal position improves or alternative funding sources become available.
Following today’s budget presentation and based on the direction provided by the City Council, staff will begin discussions with bargaining groups and unrepresented employees regarding potential incentives for voluntary separation. The Human Resources Department, in coordination with legal counsel, has developed a framework to guide the implementation of any voluntary separation program, including eligibility requirements, timelines, incentive amounts, and related administrative procedures.
The City recognizes that voluntary separation incentives may provide an opportunity to achieve personnel cost savings while minimizing the need for involuntary workforce reductions. However, should additional staffing reductions become necessary, the City will conduct any workforce reduction process in accordance with applicable collective bargaining agreements, personnel policies, and state and federal employment laws. This process will include consideration of employee rights and protections related to seniority, bumping rights, recall eligibility, and other applicable benefits and procedures.
PREVIOUS COUNCIL OR COMMISSION ACTION: N/A
CEQA: Not applicable
ATTACHMENTS:
1. 10 Year Forecast
GENERAL FUND- 10 YEAR FORECAST
1 2 3 4 5 6 7 8 9 10
FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 FUND BALANCE PREVIOUS FY 7,300,000$ 1,300,000$ (600,000)$ 624,200$ 2,079,332$ 3,774,150$ 5,717,663$ 7,919,149$ 10,388,157$ 13,134,517$ REVENUES [2.2%]50,000,000$ 51,100,000$ 52,224,200$ 53,373,132$ 54,547,341$ 55,747,383$ 56,973,825$ 58,227,249$ 59,508,249$ 60,817,430$ -$
EXPENDITURES (56,000,000)$ (53,000,000)$ (51,000,000)$ (51,918,000)$ (52,852,524)$ (53,803,869)$ (54,772,339)$ (55,758,241)$ (56,761,890)$ (57,783,604)$ RESERVES 0%-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Fund Balance 1,300,000$ (600,000)$ 624,200$ 2,079,332$ 3,774,150$ 5,717,663$ 7,919,149$ 10,388,157$ 13,134,517$ 16,168,344$ END OF YEAR 2%-1%1%4%7%11%14%19%23%28%
FUND BALANCE PREVIOUS FY 7,300,000$ (9,900,000)$ (22,400,000)$ (31,375,800)$ (40,304,268)$ (49,179,955)$ (57,997,216)$ (66,750,197)$ (75,432,837)$ (84,038,856)$ REVENUES 50,000,000$ 51,100,000$ 52,224,200$ 53,373,132$ 54,547,341$ 55,747,383$ 56,973,825$ 58,227,249$ 59,508,249$ 60,817,430$
EXPENDITURES (56,000,000)$ (53,000,000)$ (51,000,000)$ (51,918,000)$ (52,852,524)$ (53,803,869)$ (54,772,339)$ (55,758,241)$ (56,761,890)$ (57,783,604)$ 20% RESERVES (11,200,000)$ (10,600,000)$ (10,200,000)$ (10,383,600)$ (10,570,505)$ (10,760,774)$ (10,954,468)$ (11,151,648)$ (11,352,378)$ (11,556,721)$ Fund Balance (9,900,000)$ (22,400,000)$ (31,375,800)$ (40,304,268)$ (49,179,955)$ (57,997,216)$ (66,750,197)$ (75,432,837)$ (84,038,856)$ (92,561,750)$