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www.modestogov.com
MINUTES
City of Modesto
FINANCE COMMITTEE / COUNCIL WORKSHOP
Basement Chambers
Tenth Street Place, 1010 10th Street
Modesto, California
FY 2026-27 FINANCE COMMITTEE BUDGET WORKSHOPS AGENDA
Tuesday, April 21, 2026 at 8:30 AM
Roll Call: Present: Chair Wright, Vice-Chair Bavaro, Committee Member EscutiaBraaton
Absent: None
Also Present: Alternate Members Ricci (Arrived 10:37 a.m.), Williams, and Zwahlen
PUBLIC COMMENT PERIOD
• Chris Guptill, a local volunteer, and chair of the Citizens Advisory Committee for Tuolumne River Regional Park, spoke about efforts to secure increased funding for the park. Over the past year, the committee developed and approved a roughly $5 million budget proposal, to be shared by the city and county over four years and supported by multiple groups and city staff. He emphasized the park’s urgent needs, the community’s significant volunteer and financial contributions, and the importance of investing in the park as a long-term asset for future generations. • Kay Myers, president of the Central Valley Pickleball Club, raised concerns about an eight-month delay in a lighting upgrade project. Despite an approved bid, the project remains incomplete, leaving poor lighting and safety issues. She requested help in moving the project forward and getting a response from Parks and Recreation.
COMMENTS BY E-MAIL
None.
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PRESENTATIONS
Presentations continued
• Charter Offices
• Office of the City Auditor
Auditor Colleen Rozillis gave Presentation: Department Overview, Organizational Chart, Department Staffing, Department Revenue & Expenses, Strategic Plan and the Budget.
• Departments
• Human Resources Department
Human Resources Director Christina Alger gave Presentation: Department Overview, Organizational Chart, Department Staffing, Department Revenue & Expenses, Measure H Revenue & Expenses, Strategic Plan and the Budget, Proposed Non-Measure Adjustments, Worker’s Compensation, General Liability, and Employee Benefits – Risk Administration Expenses, Worker’s Comp & Liability Fund Cost Allocation Methods, Financials, Fund History and Projection, General Liability Financials, Fund History and Projection, Employee Benefits Financials – Administration Expenses, Cost Allocation, Employee Benefit Fund, Employee Benefit Administration, Employee Benefits Financials, Employee Benefits Fund History and Projection, CalPERS Actual Investment Returns Versus Assumed Investment Return, Total City Unfunded Liability, Projected UAL Payments, Projected UAL Payments with ADP, Funded Status History, Section 115 OPEB and Pension Trust.
• Information Technology Department
Chief Information Officer Dameon Booker gave Presentation: Department Overview, Organizational Chart, Department Staffing, Department Revenue & Expenses, Strategic Plan and the Budget.
• Finance Department
Finance Director DeAnna Christensen gave Presentation: Department Overview, Organizational Chart, Department Staffing, Department Revenue & Expenses, Strategic Plan and the Budget.
• Office of Performance Management and Budget
Office of Performance Management and Budget Director Steve Christensen gave Presentation: Department Overview, Organizational Chart, Department Staffing, Department Revenue & Expenses, Strategic Plan and the Budget. • Utilities Department
Utilities Director Will Wong gave presentation: Department Overview, Organizational Chart, Department Staffing, Water Fund Revenue & Expenses, - 3 -
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Wastewater Fund Revenue & Expenditures, Storm Drain Revenue & Expenses, Strategic Plan and the Budget.
Recessed at 9:55 a.m.
Reconvened 10:02 a.m.
Alternate Member Williams left at 9:55 a.m.
Special Presentations
• Revenue Manual/Fee Increases Presentation
Finance Director DeAnna Christensen, CEDD Director Jessica Hill, Interim Public Works Director Patrick Crowley, Utilities Director Will Wong, City Auditor Colleen Rozillis gave presentation: Revenue Manual, Proposed Fee Changes and Updates, Fee Increase Background, Airport Proposed Fee Increases FY 26-27, Compost Proposed Fee Increases FY 26-27, Water Rates, Wastewater Rates, Update on Baker Tilly Fee Benchmarking Study
• Equipment/Hardware/Software Maintenance Presentation
Finance Director DeAnna Christensen, Chief Information Officer Dameon Booker gave presentation: Background, Types of Equipment, Equipment Maintenance Less than $100k, Equipment Maintenance Over than $100k, Software and Hardware Maintenance, Software Maintenance Support, Software Maintenance Over than $100k, Summary of Total Estimated Costs by Fund, Fiscal Impact.
Alternate Member Ricci arrived at 10:37 a.m.
• Grant Status Update Presentation
Community & Economic Development Director Jessica Hill, Engineering Services Director Toby Wells, Public Safety Business Services Analyst Megan Lee on behalf of Fire, Police Chief Brandon Gillespie, Interim Public Works Director Patrick Crowley, Utilities Director Will Wong opened up the presentation on Grant Status Presentation: Grant Applications and Awards – FY 25-26, Proposed Grant Applications FY 26-27, Summary.
Alternate Member Williams arrived at 10:45 a.m.
• Deferred Maintenance Presentation
Interim Public Works Director Patrick Crowley, Office of Performance Management and Budget Director Steve Christensen opened up the presentation on Deferred Maintenance Presentation: Outstanding Deferred Maintenance, Categories, Ranking Strategy, Requirement Categories, Prioritization Strategy, Proposed Deferred Maintenance Plan, Next Steps.
• Sponsorships Presentation
Parks, Recreation & Neighborhoods Director Jeremy Rogers opened up the presentation on Sponsorships Presentation: Designated Partners’ Co-Sponsorships, - 4 -
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AD 3.7 Background, City Support, Process, Designated Partner Co-Sponsorships – 25-26, Approved Co-Sponsored Events, Proposed Co-Sponsored Events. • American Rescue Plan Act (ARPA) Presentation
Finance Director DeAnna Christensen, Engineering Services Director Toby Wells, Interim Public Works Director Patrick Crowley gave ARPA funding presentation:
ARPA Spending Plan Update, Programs Fully Expended, Fully Obligated, Not Fully Expended, Multifamily Bulky Item Program.
Recessed at 11:18 a.m.
Reconvened 1:00 p.m.
• Transient Occupancy Tax Polling Presentation
Finance Director DeAnna Christensen, Timothy McLarney from True North Research, Inc., Jared Boigon from TeamCivX opened up the presentation on Transient Occupancy Tax Polling Presentation: What is TOT and MTMD, Current Rate, Revenue History, Comparison to Neighboring Cities, Potential TOT Increase, Polling Survey, Next Steps – TOT Ballot, Ballot Measure Planning. • Follow-up and Committee Recommendations
Office of Performance Management and Budget Director Steve Christensen opened up the presentation on Follow-up and Committee Recommendations on behalf of the Departments.
• Recap and Staff Recommendations FY 2026-27 Presentation Office of Performance Management and Budget Director Steve Christensen opened up the presentation on the Recap and Staff Recommendations FY 2026-27 Presentation
Presentations. (Funding Source: Not Applicable)
• Presentations.
CITY CLERK; City Clerk, 209-577-5396, [email protected]
NEW BUSINESS
1. Consider accepting and forwarding on to Council for final review and adoption the Draft Proposed Fiscal Year 2026-27 Operating and Multi-Year Budget for the City of Modesto. (Funding Source: All City Funds)
• Motion accepting and forwarding on to Council for final review and adoption the Draft Proposed Fiscal Year 2026-27 Operating and Multi-Year Budget for the City of Modesto.
BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Escutia-Braaton/Bavaro; 3/0) Motion accepting and forwarding on to Council for final review and adoption the Draft Proposed Fiscal Year 2026-27 Operating and Multi-Year Budget for the City of Modesto.
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2. Consider approving payment of various equipment maintenance agreements for Fiscal Year 2026-27 with multiple equipment manufacturers for all City Departments, for an annual cost not to exceed $934,391 and forwarding to Council for approval. (Funding Sources: Various City Funds)
• Motion approving payment of various equipment maintenance agreements for Fiscal Year 2026-27 with multiple equipment manufacturers for all City Departments, for an annual cost not to exceed $934,391 and forwarding to Council for approval.
BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Bavaro/Wright; 3/0) Motion approving payment of various equipment maintenance agreements for Fiscal Year 2026-27 with multiple equipment manufacturers for all City Departments, for an annual cost not to exceed $934,391 and forwarding to Council for approval.
3. Consider approving payment of various software / hardware maintenance agreements for Fiscal Year 2026-27 with multiple vendors for all City Departments, for an annual cost not to exceed $11,750,176 and forwarding to Council for approval. (Funding Source: Various City Funds)
• Motion approving payment of various software / hardware maintenance agreements for Fiscal Year 2026-27 with multiple vendors for all City Departments, for an annual cost not to exceed $11,750,176 and forwarding to Council for approval.
BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Escutia-Braaton/Bavaro; 3/0) Motion approving payment of various software / hardware maintenance agreements for Fiscal Year 2026-27 with multiple vendors for all City Departments, for an annual cost not to exceed $11,750,176 and forwarding to Council for approval.
ADJOURNMENT
This meeting adjourned at 2:13 p.m
Attest:____________________________
Andrea Cook for
Diane Nayares-Perez, City Clerk