AGENDA
SPECIAL MEETING OF THE
CITY OF KING CITY COUNCIL
TUESDAY MAY 30, 2023
4:00 P.M.
CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
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1. CALL TO ORDER
2. ROLL CALL: Council Members Oscar Avalos, Robert Cullen, Carlos DeLeon, Mayor Pro Temp. Carlos Victoria, and Mayor Mike LeBarre
3. FLAG SALUTE
4. PUBLIC COMMENT
Any member of the public may address the Council for a period not to exceed three minutes’ total on any item of interest within the jurisdiction of this Council that is not on the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member. Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.
5. REGULAR BUSINESS
A. Consideration of Recommended FY 2023-24/FY 2024-25 Biennial Budget Recommendation: 1) receive a presentation of the proposed FY 2023-24/ FY 2024-25 Biennial Budget; 2) provide direction on any desired changes; and 3) direct staff to draft a Resolution for adoption of the Budget at the June 13, 2023 meeting.
6. CITY COUNCIL CLOSED SESSION
Announcement(s) of any reportable action(s) taken in Closed Session will be made in open session and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded.
A. Public Employee Performance Evaluation Pursuant to Government Code Section 54957:
Title: City Manager
B. CONFERENCE WITH LABOR NEGOTIATORS – Government Code section 54957.6. Unrepresented employees: Chief of Police; Director of Public Works; Community Development Director.
7. ADJOURNMENT
Item No. 5 (A)
REPORT TO THE CITY COUNCIL
DATE: MAY 30, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF RECOMMENDED FY 2023-24/FY 2024-25
BIENNIAL BUDGET
RECOMMENDATION:
It is recommended City Council: 1) receive a presentation of the proposed FY 2023-24/ FY 2024-25 Biennial Budget; 2) provide direction on any desired changes; and 3) direct staff to draft a Resolution for adoption of the Budget at the June 13, 2023 meeting.
BACKGROUND:
Staff are pleased to present the Recommended Biennial Budget for FY 2023-24/ FY 2024-25 for City Council consideration. Approval by the City Council was recommended by the Budget Advisory Committee at their meeting on May 11th.
The budget document is attached, which includes a budget message, overview information, summary of General Fund accounts, summary of enterprise funds, summary of special funds, the Capital Improvement Program (CIP), the LongRange Financial Plan, and the account detail. Please review the budget message for a more detailed discussion of the contents and analysis of the proposed budget.
DISCUSSION:
The recommended budgets make progress toward accomplishing each of the major budget goals/priorities that were approved by the City Council in the first step of the budget process. The major goals that were established for the budget include the following:
CITY COUNCIL
CONSIDERATION OF RECOMMENDED FY 2023-24/FY 2024-25 BIENNIAL BUDGET
MAY 30, 2023
PAGE 2 OF 5
• Maintain existing service levels and programs and complete existing priority projects.
• Repair and upgrade City facilities, street and wastewater infrastructure. • Plan and obtain grant funding for sustainability and resiliency projects. • Expand community outreach efforts.
• Promote and facilitate the development of increased housing units. • Begin the process or begin to reserve funding for a comprehensive upgrade of the Municipal Code.
One of the most exciting features of this budget is that the City has been successful in building a meaningful fund balance in the General Fund. Despite some significant proposed one-time expenditures, the projected ending fund balance is $2,912,137 in FY 2023-24 and $2,966,579 in FY 2024-25. Among other benefits, this helps the City budget more accurately because it is less critical to estimate overly conservative to eliminate the potential for an unforeseen revenue shortfall. The last time the City had a positive General Fund balance was in 2005. Therefore, this represents a major accomplishment in fiscal management for the City.
The recommendations address a number of specific needs. The most significant changes in the General Fund expenditures include the following:
• Due to the retirement of the City’s part-time contract Community Development Director, it is proposed to add one full-time Community Development Director position. This will be accompanied by reducing the full-time Planner position to part-time, who will be primarily dedicated to accomplishing the budget goal of updating the Municipal Code. • A full-time Community Engagement Coordinator position is proposed to be added to enhance community outreach efforts, public assistance, community events, and grant efforts. The position will replace the existing temporary grant funded COVID-19 Community Assistance Coordinator. • A full-time School Resource Officer position is proposed to be added to expand the King City Police Department presence on school campuses, to provide more intervention capabilities with at-risk youth, and to achieve
CITY COUNCIL
CONSIDERATION OF RECOMMENDED FY 2023-24/FY 2024-25 BIENNIAL BUDGET
MAY 30, 2023
PAGE 3 OF 5
another objective in the Comprehensive Plan to End Youth Violence. The position will replace the existing on-campus Probation Officer position and be jointly funded with the South Monterey County Joint High School District and the King City Union Elementary School District. The majority of the City’s share will come from savings experienced by discontinuing the contract with the Monterey County Probation Department. • A part-time Recreation Supervisor position is proposed to be added in order address demands of coordinating the City’s recreation activities and will help expand youth and senior programs.
• A full-time Public Works Maintenance Worker position is proposed to be added to assume in-house janitorial responsibilities, which have been contracted during the pandemic utilizing grant funds. The position will also be assigned to increase cleaning of public spaces in the downtown area once construction of improvements is completed.
• Funding is budgeted for the Sun Street Centers Road to Success youth diversion program that was previously paid for by a grant that will terminate on June 30, 2023. This program will also be jointly funded with the South Monterey County Joint Union High School District and the King City Union Elementary School District.
Expenditures in the General Fund are proposed to exceed revenues by $858,859 in FY 2023-24. However, this is due to proposed one-time expenditures for capital projects to be funded by reserves. The primary purpose of these expenses is to complete projects currently under way. The majority of the funds are carryover expenditures that were budgeted but not expended in FY 2022-23.
The most significant General Fund Capital Improvement Project expenditures proposed to complete ongoing projects include the following:
• Downtown Streetscape Project
• Downtown Plaza
• Visitor and History Center Project
• City Hall Remodel Project
The City Hall remodel is proposed to address existing office space needs. The projects are all funded primarily by grants and development impact fees.
CITY COUNCIL
CONSIDERATION OF RECOMMENDED FY 2023-24/FY 2024-25 BIENNIAL BUDGET
MAY 30, 2023
PAGE 4 OF 5
General Fund revenues are only needed to complete the overall funding gaps due primarily to inflationary increases experienced over the last couple years.
One of the most important components of the Biennial Budget is the Long-Range Financial Plan. In this budget, two scenarios are presented. Scenario I is the Base Plan, which provides a 10-year projection of existing revenues and expenditures. This plan demonstrates that the recommended expenditures can be sustained over the next 10-year period while maintaining a reserve of at least 10% of the General Fund. However, it also indicates that annual expenditures will begin exceeding revenues in FY 2026-27 which presents a concern.
Scenario II is being referred to as the Unfunded Needs Plan. Despite the City’s success in paying off its debt and addressing major priorities, there are significant unfunded needs remaining. Scenario II identifies the highest priority unfunded needs and estimates the cost impact over the 10-year period to address them. The needs identified include the following:
• Street Improvements
• City Facility Deferred Maintenance and Upgrades
• Police Department Staffing
• Public Works Maintenance Staffing
• Building and Maintaining Financial Reserves
Consideration of an additional ½ cent sales measure is identified as a strategy to address the projected revenues needed. The amount of revenue that would be generated is programmed in the model and discussed in more detail in the budget message. The forecast demonstrates revenue could be generated to address each of the priority items identified while maintaining a 30% General Fund reserve.
COST ANALYSIS:
The total proposed City budget is $27,719,877 in FY 2023-24 and $18,746,318 in FY 2024-25. Of these amounts, the total proposed General Fund is $11,400,637 in FY 2023-24 and $10,782,319 in FY 2024-25, which includes expenditures, repayment of debt, capital improvements, grants, transfers out and carryovers.
FY 2023-24/FY 2024-25
BIENNIAL BUDGET