Mount Shasta City Council
June 10, 2024

“Our mission is to maintain the character of our “small town” community while striking an appropriate balance between economic development and preservation of our quality of life. We help create a dynamic and vital City by providing quality, cost-effective municipalservices and by forming partnerships with residents and organizations in the constant pursuit of excellence.”
Page Item STANDING AGENDA ITEMS

1. Call to Order and Flag Salute

2. Roll call

3. Special Presentation: None

4. Public Comment:

This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an agenda item noted on the regular agenda, please address the Council when that item is open for public comment.

Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. If you have documents to present to members of Council, please provide a minimum of seven (7) copies to the Deputy City Clerk. Email Comments may be submitted to the City Clerk’s Office ([email protected]). Items received no later than 12:00 pm on the day of the meeting will be provided to the City Council prior to the meeting. These items will NOT be read into the record.

5. Council and Staff Comments

6. Committee Updates:
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee
Mt. Shasta City Council Regular Meeting Agenda
Monday, June 10, 2024, 5:30 p.m.

This meeting will be presented in a hybrid format and can be attended in two ways:

In-Person at the Mt. Shasta City Park Upper Lodge, 1315 Nixon Rd. Mt. Shasta, CA OR
Online at the following link:

MountShasta.22Ave.tv
For the safety of our staff, the council, and public, we are no longer allowing members of the audience to carry large bags, backpacks, or other items outside of small personal items such as purses or satchels. Only service animals are allowed inside council chambers; nonservice pets are not allowed under any circumstances. Violators will be asked to remove the bag and/or animal, and refusal to do so will be cause for removal from the meeting.

Mt. Shasta City Council Regular Meeting June 10, 2024 1 Mt. Shasta Regular City Council Meeting Agenda
Monday, June 10, 2024

CITY COUNCIL BUSINESS

All Resolutions and Ordinances on this agenda, or added hereto, shall be introduced or adopted, as applicable, by title only, and the full reading thereof is hereby waived. a. Approval of Minutes: May 28, 2024 Regular Meeting
b. Approval of Disbursements: Accounts Payable: 5/20, 5/22, and 6/4/2024; Total Gross Payroll and Taxes: For Period Ending 5/26/2024
c. Committee Minutes: Planning Commission March 19, 2024 d. Resolution adopting a list of projects to be funded by SB1 e. Resolution approving hospital landing lights at the existing Mercy Hospital Helipad f. Resolution CCR-24-XX, A Resolution Of The City Council Of The City Of Mt. Shasta Determining That Richard G. Joyce Shall Receive Advanced Disability Retirement Payments Monthly Until CALPERS Makes A Determination Regarding His Disability Retirement Application

Background: On June 7, 1994, the electorate of the City of Mt. Shasta voted in favor of a tax initiative setting a special assessment of $8.00 per year for unimproved parcels, $24.00 per year for improved parcels, and $36.00 per year for commercial parcels for the purpose of providing funding for Fire Department equipment acquisition. The Siskiyou County Auditor's Office requires that the Board of Directors of any special assessment district certify that the assessments are valid and authorized before they are placed on the tax roll each year.

Report By: Muriel Terrell, Finance Director
Recommended Council Action: Staff respectfully requests that Council hold the required public hearing for the Fire Special Assessment. If any inequities are identified during the public hearing process or the Council disagrees with any of the recommendations of staff, the Levy listing can be further modified before the adoption of the Resolution. Then adopt Resolution CCR-24-XX, A Resolution of the City Council of the City of Mt. Shasta Authorizing the Special Assessments for the Fire Department Equipment Funding Special Tax for the 2024-2025 Tax Roll and Authorizing the Mayor to Execute the Certification.

Background: The City Council will hold a public hearing as part of the Stormwater Rate Adjustment process. The Council will hear and consider oral testimony and count the ballots that were submitted regarding proposed rate adjustments. The City Council has the authority to adjust the proposed rate changes in response to oral testimony and the ballots submitted for consideration, provided that any adjustments cannot increase rates beyond those listed in the notice that was mailed to all property owners. If adopted, proposed stormwater rate adjustments would become effective on July 1, 2024, with annual rate adjustments on July 1st.

Report By: Todd Juhasz, City Manager
Recommended Council Action: Receive report on the Stormwater Rate Study, open the public hearing and take public comment, and then recess Council to count ballots.

10. Recess to Count Ballots
Mt. Shasta City Council Regular Meeting June 10, 2024 2 5-28
29-32
33-51
Mt. Shasta Regular City Council Meeting Agenda
Monday, June 10, 2024

11. Report on Final Ballot Count
Report By: Kathy Joyce, Deputy City Clerk

Report By: Todd Juhasz, City Manager

Background: On April 22nd, the City Council discussed the possibility of an increase to the City Manager’s salary and opted to tabled the item to a later date. At the May 13th meeting, Council requested that the item be agendized again for discussion.

Recommended Council Action: Discuss the City Manager’s salary and determine a course of action/direct staff.

Background: The City Council will review and discuss the proposed operating budgets for the next two fiscal years.

Report By: Muriel Terrell, Finance Director
Recommended Council Action: Review and discuss the Proposed Operating Budgets All Fund for fiscal year 2024-2025, 2025-2026.

Background: The voters of the State of California amended the Constitution with Proposition 4 adding Article XIII B in the early 1980's to require cities to establish an absolute limit for appropriations from the proceeds of taxes during a fiscal year. Staff has prepared a resolution for Council consideration making the choice to use the growth in per capita income as the measure of price change for calculating the appropriations limit and setting the appropriations limit as calculated at $10,697,022.

Report By: Muriel Terrell, Finance Director
Recommended Council Action: Review the choice of inflation facts and calculation of the appropriations limit and adopt Resolution CCR-24-XX, A Resolution of the City Council of the City of Mt. Shasta Establishing an Appropriations Limit for Fiscal Year 2024-2025.

CITY COUNCIL/STAFF REPORTING PERIOD

16. Reports on Outside Meetings
Mt. Shasta City Council Regular Meeting June 10, 2024 3 52-84
85-88
Mt. Shasta Regular City Council Meeting Agenda
Monday, June 10, 2024

17. Future Agenda Items and Meetings (Appearing on the agenda within 60-90 days):
a. Public Hearing: Amendment to the Short-Term Rental Ordinance – 6/24/2024 b. Final Budget Approval – 6/24/2024
c. Discussion and Possible Action: Brownell Property – 6/24/2024 d. Public Hearing: Housing Element Amendment – 7/8/2024 e. Analysis and Report on Options for Recycling – TBD
f. Approval of Funds to Complete a Survey of Washington Avenue – TBD g. Amendment of Parklet Ordinance – TBD
h. Discussion and Possible Action: Beautification Committee Fiscal Review and Project Approval – TBD
i. Graffiti Ordinance – TBD
j. Discussion and Possible Action: Rental, Lease, or Purchase of Lot Located at the northwest corner of Alma and N. Mt. Shasta Blvd – TBD
k. Discussion and Possible Action: Expansion of the Downtown Parking District Borders - TBD l. Discussion and Possible Action: Amendment to Sidewalk Ordinance – TBD m. Discussion and Possible Action: Snow Removal Operations – TBD Future Agenda Items Over 90 Days:
n. Discussion and Possible Action: Review of Chapter 13.95 Extraction and Exportation of Groundwater from the City of Mt. Shasta
o. Objective Design Standards Presentation/Discussion

18. Adjourn
I, Kathryn Joyce, declare under penalty of perjury that this agenda has been posted at least 72 hours in advance at the Mt.

Shasta City Hall, 305 N. Mt. Shasta Blvd, Mt. Shasta, CA, in the glass case and on the City website at www.mtshastaca.gov.

Agendas and packets shall be made available at least 72 hours in advance of regular meetings and 24 hours in advance of special meetings on the City’s web site. Any writings or documents pertaining to an open session item provided to a majority of the City Council less than 72 hours prior to the meeting shall be made available on the City’s web site www.mtshastaca.gov.

Availability of Public Records: All public records related to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at City Hall located at 305 North Mt. Shasta Blvd.

The City of Mt. Shasta does not discriminate on the basis of race, color, national origin, sex, religion, age or disability in employment or provision of services. In compliance with the Americans with Disabilities Act, if you need special assistance, a disability-related modification or accommodation, agenda materials in an alternative format, or auxiliary aids to participate in this meeting, please contact the Office of the City Clerk at 530-326-7516 or [email protected] as soon as possible. Providing at least 72 hours’ notice will help ensure that reasonable arrangements can be made.

Mt. Shasta City Council Regular Meeting June 10, 2024 4 Mt. Shasta City Council Regular Meeting DRAFT Minutes
Tuesday, May 28, 2024; 5:30 p.m.

City Park Upper Lodge 1315 Nixon Road, Mt. Shasta
Meeting allowed for virtual attendance via ZOOM
“Our mission is to maintain the character of our “small town” community while striking an appropriate balance between economic development and preservation of our quality of life. We help create a dynamic and vital City by providing quality, cost-effective municipal services and by forming partnerships with residents and organizations in the constant pursuit of excellence.”

STANDING AGENDA ITEMS

1. Call to Order and Flag Salute: At the hour of 5:33 p.m. Mayor Stackfleth called the meeting to order and led the audience in the flag salute.

2. Roll Call:

Council Members Present: Stackfleth, Collings, Redmond, Stearns, Clure Council Members Absent: None

3. Special Presentation: Siskiyou Outdoor Recreation Alliance (SORA) Justi Hansen and Renee Casterline of SORA gave an update on programs, trail work, grant awards, and community workshops.

4. Public Comment:

Tracy Costello – Comments regarding creek-side property near the movie theater and the creation of a park; complaints about shipping container.

Greg Dinger – Concern about loss of recycling at the Opportunity Center.

5. Council and Staff Comments:

Todd Juhasz, City Manager – Update on library expansion project and upcoming meetings, Finance Director interviews, upcoming short term rental ordinance amendment and graffiti ordinance, upcoming Brownell property results.

Robert Gibson, Chief of Police – Comments regarding Siskiyou County’s Continuum of Care, comments about recent case and subsequent arrest drawing the attention of the National Center for Missing and Exploited Children.

6. Committee Updates:
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee
Todd Juhasz, City Manager – Update on DEAC activities.

CITY COUNCIL BUSINESS
Mt. Shasta City Council Regular Meeting June 10, 2024 5 City of Mt. Shasta Regular City Council Meeting Minutes Tuesday, May 28, 2024

7. Consent Agenda:

COUNCIL ACTION: Approved the following Consent Agenda items. All Resolutions and Ordinances on this agenda, or added hereto, shall be introduced or adopted, as applicable, by title only, and the full reading thereof is hereby waived.
a. Approval of Minutes: May 13, 2024 Regular Meeting
b. Approval of Disbursements: Accounts Payable: 5/9/2024; Total Gross Payroll and Taxes: For Period Ending 5/12/2024
c. Committee Minutes: Beautification Committee April 18, 2024 d. Second Reading and Adoption of Ordinance CCO-24-05 of the City Council of the City of Mt.

Shasta Amending Chapter 2.22.010 of Title 2 of the Mt. Shasta Municipal Code to Decrease Council Member Compensation
e. Renewal of Lease with Recreation and Parks District
f. Monthly Investment and Revenue Report
COUNCIL ACTION: Approve items a-f
MOTION TO APPROVE: Clure
SECOND: Redmond
AYES: Stackfleth, Collings, Redmond, Stearns, Clure
NOES: None
ABSENT: None
ABSTAIN: None

8. Letter of Intent to Develop to Purchase and Develop the Landing Todd Juhasz, City Manager – Review of negotiations with developer and the development of the Letter of Intent. Comments about assistance received from the Siskiyou Economic Development Council on an Environmental Protection Agency (EPA) grant.

Clarifying questions from Council.

Todd Juhasz, City Manager – Review of additional language to be added to the Letter of Intent as provided by the City Attorney.

Clarifying questions from Council.

Renee Casterline – Comments expressing concern about the local neighborhood if The Landing property is developed. Comments in support of a park element and walkability.

Justi Hansen – Comments regarding development of the property; in support of enhancing existing businesses as well as arts, recreation, housing, and an interpretive center.

Wendy Warnick – Comments regarding a deposit from the developer.

Raven Stevens – Comments regarding recycling and requesting an update on the One Shasta well acquisition.

Todd Juhasz, City Manager – Update on negotiations with One Shasta.

Council discussion.

COUNCIL ACTION: Authorize the City Manager to move forward with the Letter of Intent with amendment consistent to what was presented in the draft this evening MOTION: Stearns
SECOND: Clure
AYES: Clure, Redmond, Collings, Stearns, Stackfleth
NOES: None
ABSENT: None
ABSTAIN: None
Mt. Shasta City Council Regular Meeting June 10, 2024 6 City of Mt. Shasta Regular City Council Meeting Minutes Tuesday, May 28, 2024

9. Discussion and Possible Action: Sales Tax Measure for the November 2024 Ballot Todd Juhasz, City Manager – Introduction of item, review of options to move emergency services to County services and whether to float a half-cent sales tax on the November ballot.

Clarifying questions from Council.

Renee Casterline – Comments stating that a lot of work needs to be done in the community prior to bringing a tax measure forward.

Justi Hansen – Question about the tax proposal.

Council and staff discussion.

COUNCIL ACTION: Direct staff to bring back options to City Council, possibly a study with varying levels of increase to potentially be put on the June 2026 ballot.

MOTION: Clure
SECOND: Redmond
AYES: Clure, Redmond, Collings, Stearns, Stackfleth
NOES: None
ABSENT: None
ABSTAIN: None

10. Reports on Outside Meetings: Mayor Stackfleth updated Council on an information gathering meeting that was held with the EPA.

Councilmember Clure updated Council on her attendance at the League of California Cities Sacramento Valley Division meeting as well as a Public Finance Authority meeting.

11. Future Agenda Items (Appearing on the agenda within 60-90 days):

COUNCIL ACTION: Reviewed items a through p. Items added: Analysis of options for recycling a. City Manager Salary – 6/10/2024
b. Public Hearing: Amendment to the Short-Term Rental Ordinance – 6/10/2024 c. Preliminary Budget – 6/10/2024
d. Final Budget Approval – 6/24/2024
e. Stormwater Rate Adjustment Election Ballot Count – 6/24/2024 f. Resolution adopting a list of projects to be funded by SB1 - TBD g. Approval of Funds to Complete a Survey of Washington Avenue – TBD h. Amendment of Parklet Ordinance – TBD
i. Discussion and Possible Action: Beautification Committee Fiscal Review and Project Approval – TBD j. Graffiti Ordinance – TBD
k. Discussion and Possible Action: Rental, Lease, or Purchase of Lot Located at the northwest corner of Alma and N. Mt. Shasta Blvd – TBD
l. Discussion and Possible Action: Expansion of the Downtown Parking District Borders - TBD m. Discussion and Possible Action: Amendment to Sidewalk Ordinance – TBD n. Discussion and Possible Action: Snow Removal Operations – TBD Future Agenda Items Over 90 Days:
o. Discussion and Possible Action: Review of Chapter 13.95 Extraction and Exportation of Groundwater from the City of Mt. Shasta
p. Objective Design Standards Presentation/Discussion

12. Adjourn: There being no further business, the meeting was adjourned at 7:04 p.m.

Mt. Shasta City Council Regular Meeting June 10, 2024 7 City of Mt. Shasta Regular City Council Meeting Minutes Tuesday, May 28, 2024

Respectfully Submitted By: Kathryn M. Joyce, Administrative Assistant/Deputy City Clerk Mt. Shasta City Council Regular Meeting June 10, 2024 8 City Council Agenda Item #7b
Staff Report
Meeting Date: June 10, 2024
To: Mayor and City Council
From: Muriel Howarth Terrell, Finance Director
Subject: Approval of Warrants and Payroll
Recommendation:

Staff requests the Mayor and City Council Approve warrants paid including payroll benefits and withholding, and payroll distribution, in the amount of $986,510.15.

Background & Summary:

Approval of Check Numbers 52364-52459 $ 861,774.51
Total Payroll Distribution $ 87,234.38
Total EFTPS – CalPERS, Nationwide $ -0-
Total Payroll EFTPS Taxes $ 37,501.26
$ 986,510.15
Financial Impact:

Expenditures are consistent with the Budget that the City Council has adopted.

Attachments:

1.) Check Registers – 5/22/24, 6/4/24

2.) ACH Payroll Distribution – 5/30/24

3.) EFTPS Reports –
Regular
x Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting June 10, 2024 9 Mt. Shasta City Council Regular Meeting June 10, 2024 10 Mt. Shasta City Council Regular Meeting June 10, 2024 11 Mt. Shasta City Council Regular Meeting June 10, 2024 12 Mt. Shasta City Council Regular Meeting June 10, 2024 13 Mt. Shasta City Council Regular Meeting June 10, 2024 14 Mt. Shasta City Council Regular Meeting June 10, 2024 15 Mt. Shasta City Council Regular Meeting June 10, 2024 16

STANDING AGENDA ITEMS

1. Call to Order and Flag Salute. Chair Findling called the meeting to order at 6:01 PM and led the audience in the flag salute.

2. Roll call

Present: Beck, Boyenger, Higuera, McDowell, Saryon, Findling

Absent: McCarthy
Comments:

3. Public Comment:

Jeremy Flynn, 22nd Avenue. Update on technical difficulty that occurred on Feb 20 regular meeting

PLANNING COMMISSION BUSINESS

4. Consent Agenda

1. Approval of Minutes: Regular Meeting
a. Approval of Minutes: February 20, 2024 Regular Meeting.

MOTION TO APPROVE: Higuera
SECOND: Beck
AYES: Findling, Saryon, Beck, McDowell, McCarthy, Boyenger, Higuera NOES: None
ABSENT: None
ABSTAIN: None

5. Objective Design Standards
I. Jeff Mitchem, Planning Director. Presented ODS and facilitated discussion.

6. Commission and Staff Comments
Findling. Introduced newest Commission Patty McCarthy.

Boyenger. Flooding on Everett Memorial. What is status of pavement plan? McCarthy. Concerns about low point on Mt Shasta Blvd near Mike / Tony’s.

Higuera. Why a flag salute at every meeting. Why – ask Kathy about procedure. 20-minute parking possible? Status of parking enforcement?
Saryon. Grant – Sliver Springs, Taos,
Beck. Summit lofts – What is outside patio status. Confirm adequate parking for guests.

Direction of Staff to check compliance with land use entitlement.

Mt. Shasta Planning Commission Regular Meeting Minutes
Tuesday , March 19, 2024; 6:00 p.m.

City Pa rk Upper Lodge 1315 Nixon Rd.

This meeting allowed for remote participate via ZOOM
Mt. Shasta City Council Regular Meeting June 10, 2024 17 2 7. Future Agenda Items –
Director Mitchem. Objective Design Standards (x3) and possibility of community open house at next regular meeting. No Development Review in the queue.

8. Adjourn
Adjourned at 7:36 pm.

Mt. Shasta City Council Regular Meeting June 10, 2024 18 City Council Agenda Item # 7d
Meeting Date: June 10, 2024
To: Mayor and City Council
From: Ken Kellogg, Public Works Director
Muriel Terrell, Finance Director
Subject: SB 1 Funding Requirements
Recommendation:

Staff respectfully requests the City Council approve the proposed Resolution adopting a list of projects to be funded by Senate Bill 1 (SB 1) for FY 2024/25.

Background & Summary:

Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017), was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide. SB 1 increases several taxes and fees to raise over $5 billion annually in new transportation revenues.

Moreover, SB 1 makes adjustments for inflation every year so that the purchasing power of the revenues does not diminish as it has historically.

Beginning in November 2017, portions of SB 1 revenues have been deposited into the Road Maintenance and Rehabilitation Account (RMRA) and subsequently made available to eligible cities and counties, which must comply with RMRA funding requirements as determined by the California Transportation Commission (CTC).

SB 1 prioritizes this funding towards critical maintenance, rehabilitation, and safety improvements on state highways, local streets and roads, and bridges and to improve the state’s trade corridors, transit, and active transportation facilities. As codified in the Streets and Highways Code (SHC), RMRA local streets and roads allocations must be used for projects that include, but are not limited to, the following:
• Road maintenance and rehabilitation
• Safety projects
• Railroad grade separations
• Traffic control devices
X Regular Session
Special Session
Emergency Session
Closed Session
Mt. Shasta City Council Regular Meeting June 10, 2024 19 2 • Complete street components, “including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project.

As part of SB 1’s various accountability and transparency measures, the City will annually submit a proposed project list to the CTC and subsequently provide year end updates on the progress of previously proposed projects.

In order to meet SB 1’s eligibility and reporting requirements, the RMRA funding must be specifically differentiated from the Highway Users Tax Account (HUTA) funding. Each project utilizing RMRA funds is required to include the following information: project description, specific location, proposed schedule for its completion, and the estimated useful life.

Therefore, staff has prepared the necessary Resolution to meet program requirements. It is recommended that the City Council adopt the attached Resolution adopting a project list for SB1 funding.

Attachments:

1. Resolution CCR-24-XX
Mt. Shasta City Council Regular Meeting June 10, 2024 20 1 CCR-24-XX
RESOLUTION CCR-24-XX

A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA

ADOPTING A LIST OF PROJECTS TO BE FUNDED BY
SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $83,000 in RMRA funding in Fiscal Year 2024/25 from SB 1; and
WHEREAS, this is the seventh year in which the City is receiving SB1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB1; and WHEREAS, the City has undergone a robust public outreach process to ensure public input into our community’s priorities/the project list; and WHEREAS, the City uses a Pavement Management System to develop project lists to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate our streets add active transportation infrastructure throughout the City and many similar projects into the future; and
Mt. Shasta City Council Regular Meeting June 10, 2024 21 2 CCR-24-XX
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in at risk to poor condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a good condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure will a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Mt. Shasta as follows:

The following recitals are true and correct.

The following previous proposed and adopted projects may also utilize Fiscal Year 2024/25 Road Maintenance and Rehabilitation Account Revenues in addition to previous years revenue in their delivery. With the relisting of this project in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues.

PROJECT TITLE: Chip Seal Street Maintenance and Repairs Expanded Area PROJECT DESCRIPTION: Street resurfacing including, dig-outs, repair, paving overlay, crack seal and chip seal.

PROJECT LOCATION: Various secondary and residential streets. Project locations are within the City Limits of the City of Mt. Shasta.

SCHEDULE: Chip Seal project will not be performed this season due to the Siskiyou County Road Crew workload and lack of availability.

ESTIMATED USEFUL LIFE: 5 - 10 years
PROJECT TITLE: South Mt. Shasta Blvd. Overlay
PROJECT DESCRIPTION: Street resurfacing including, dig-outs, repair, paving overlay.

PROJECT LOCATION: Repave South Mt. Shasta Blvd. from McCloud Avenue south to Ream Avenue. Project location is within the City Limits of the City of Mt. Shasta.

SCHEDULE: Project construction to be scheduled for May through October of the 25/26 season and partially funded with $237,000 of RMRA funds.

ESTIMATED USEFUL LIFE: 20 years
PASSED AND ADOPTED by the City Council of the City of Mt. Shasta, State of California this 10th day of June 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

Mt. Shasta City Council Regular Meeting June 10, 2024 22 3 CCR-24-XX
ABSENT:

DATED: June 10, 2024
CITY OF MT. SHASTA
____________________________
John Stackfleth, Mayor
ATTEST:
_______________________________
Kathryn Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting June 10, 2024 23 CITY OF MT. SHASTA

STAFF REPORT
TO: City Council
FROM: Jeff Mitchem, Planning Director
DATE: June 10, 2024
SUBJECT: Mercy Hospital Landing Lights

DESCRIPTION
Consideration of a Resolution (Attachment 1) approving hospital landing lights at the existing Mercy Hospital Helipad.

RECOMMENDATION
Approve the Resolution.

BACKGROUND/SUMMARY
Mercy Medical Center wishes to install landing lights for its Helipad to provide additional safety for reduced visibility emergency helicopter service. The hospital states that the landing lights are necessary to enhance medical care for the citizens and visitors of Mt. Shasta.

The California Department of Transportation ("CalTrans") must approve the installation of landing lights in the vicinity of an Intra-State Highway. CalTrans will not approve the installation of landing lights unless the City Council first approves the plans for installation of the landing lights.

ENVIRONMENTAL REVIEW
Installation of landing lights is Statutorily Exempt from CEQA under Sections 15268, Ministerial Projects; and 15269, Emergency Projects.

ATTACHMENTS:

A. Resolution (Exhibit A – Mercy Lighting Plan)
Mt. Shasta City Council Regular Meeting June 10, 2024 24 RESOLUTION CCR-24-XX

RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA

APPROVING THE INSTALLATION OF LANDING LIGHTS
AT MERCY MEDICAL CENTER MT. SHASTA HELIPAD
WHEREAS, Mercy Medical Center, Mt. Shasta wishes to install landing lights for its Helipad to provide additional safety for reduced visibility emergency helicopter service; and WHEREAS, the California Department of Transportation ("CalTrans") must approve the installation of landing lights in the vicinity of an Intra-State Highway; and, WHEREAS, CalTrans will not approve the installation of landing lights unless the City Council first approves the plans for installation of the landing lights; and, WHEREAS, the City Council finds that landing lights are necessary to enhance medical care for the citizens and visitors of Mt. Shasta; and,
WHEREAS, the City Council finds that the installation of landing lights is Statutorily Exempt from CEQA under Sections 15268, Ministerial Projects; and 15269, Emergency Projects.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Mt. Shasta hereby approves the installation of landing lights at the Heliport at Mercy Medical Center, Mt.

Shasta, as shown on Exhibit "A" attached hereto.

PASSED, APPROVED, AND ADOPTED this 10th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: June 10, 2024 CITY OF MT. SHASTA
______________________________
John Stackfleth, Mayor
ATTEST:
______________________________
Kathryn Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting June 10, 2024 25 CH
2:1 transitional surface
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+3,569' MSL
+3,560' MSL
+3,557' MEAN SEA LEVEL (MSL) EXISTING FUELING STATION PROPOSED HELIPAD LIGHTING 100'-0" DIAMETER SAFETY AREA 80'-0" DIAMETER FINAL APPROACH AND TAKE-OFF AREA (FATO) 50'-0" DIAMETER TOUCHDOWN AND LIFT-OFF AREA (TLOF) EXISTING PAVED ACCESS RAMP UP TO HELIPAD PRIMARY DEPARTURE 165.8° TRUE PROVIDE RED OBSTRUCTION LIGHTS ON ROOF AT BUILDING CORNERS UNDER APPROACH/ DEPARTURE FLIGHT PATH PROVIDE RED OBSTRUCTION LIGHT ON ROOF AT BUILDING CORNER UNDER APPROACH/ DEPARTURE FLIGHT PATH PROVIDE RED OBSTRUCTION LIGHT ON ROOF AT RIDGE UNDER APPROACH/DEPARTURE FLIGHT PATH PROVIDE RED OBSTRUCTION LIGHTS ON ROOF AT BUILDING CORNERS UNDER APPROACH/ DEPARTURE FLIGHT PATH 50'-0" TLOF 10'-0" 80'-0" FATO 10'-0" 5'-0" 5'-0" 8:1 APPROACH TRANSITIONAL SURFACE 2:1 TRANSITIONAL SURFACE 50'-0" TLOF 10'-0" 80'-0" FATO 10'-0" 5'-0" 5'-0" LINE OF ROAD BEYOND 8:1 APPROACH TRANSITIONAL SURFACE 2:1 TRANSITIONAL SURFACE 50'-0" TLOF 10'-0" 80'-0" FATO 10'-0" 5'-0" 5'-0" +3,576.75' MSL +3,579.66' MSL +3,593.83' MSL +3,573.33' MSL +3,574.33' MSL 2:1 TRANSITIONAL SURFACE 2:1 TRANSITIONAL SURFACE +3,576.75' MSL +3,573.5' MSL +3,569.83' MSL +3,570' MSL +3,577.08' MSL LOOKING WEST LOOKING SOUTH LOOKING NORTHWEST AS NOTEDEL HELIPORT LAYOUT PLAN A031 Date Issued Project No. Scale SHEET No. Drawn By Delta REVISIONS Description Date DRAWING STATUS SHEET TITLE PROJECT NAME LICENSE STAMPS AGENCY APPROVAL KEY PLAN HELIPORT LIGHTING FOR MERCY MEDICAL CENTER MT. SHASTA 914 PINE ST. MT. SHASTA, CA 96067 CONSTRUCTION DOCUMENTS 04/22 21-4175 ARCHITECTURAL SITE PLAN HELIPORT DATA PANEL HELIPORT NAME STREET ADDRESS USAGE MERCY MEDICAL CENTER OF MT. SHASTA HELIPORT 914 PINE STREET, MOUNT SHASTA, CA 96067 PRIVATE GEOGRAPHIC COORDINATES (NAD 83) AT HELIPORT CENTER: LATITUDE 41° 19.12' N LONGITUDE 122° 19.20' W APPROACH COURSE DEPARTURE COURSE 125° 350° FATO (FINAL APPROACH & TAKEOFF AREA) 80'-0" DIA. TLOF (TOUCHDOWN & LIFT-OFF AREA) 50'-0" DIA. SAFETY AREA WIDTH 10'-0" W. TOTAL UNOBSTRUCTED WIDTH (FATO plus SAFETY AREA on each side) 100'-0" DIA. TLOF SURFACE MATERIAL CONCRETE TLOF SURFACE GRADIENT & DIRECTION 1% SW 3 12 4 123 PROVIDE FLUSH-MOUNTED HELIPAD LIGHTING WHERE INDICATED. SEE ELECTRICAL DRAWINGS FOR ADDITIONAL INFORMATION. 4 (E) DASHED LINE INDICATES 80'-0" DIA. FATO (FINAL APPROACH AND TAKE-OFF AREA) LINE OF EXISTING 100'-0" DIA. CONC HELIPAD WITH EXISTING MARKING LINE OF EXISTING 50'-0" DIA. TLOF (TOUCHDOWN & LIFT-OFF) KEYNOTES 3 3 12 4 3 13 2 3 4 NOTE: All Part 77 surfaces are clear of obstruction Phillip Miller ASO 27 JUN 22 RESOLUTION CCR-24-XX

A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA
DETERMINING THAT RICHARD G. JOYCE

SHALL RECEIVE ADVANCED DISABILITY RETIREMENT PAYMENTS

MONTHLY UNTIL CALPERS MAKES A DETERMINATION

REGARDING HIS DISABILITY RETIREMENT APPLICATION
WHEREAS, the City of Mt. Shasta (hereinafter referred to as Agency) is a contracting agency of the California Public Employees’ Retirement System (CalPERS); and WHEREAS, the California Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purposes of the California Public Employees’ Retirement Law and whether such disability is “industrial” within the meaning of such law; and WHEREAS, an application for industrial disability retirement of Post-Traumatic Stress Disorder from Richard G. Joyce, employed by the Agency in the position of Fire Chief, has been filed with CalPERS; and
WHEREAS, the City Council of the City of Mt. Shasta has determined that Richard G. Joyce is incapacitated for performance of the duties of Fire Chief and that such disability is industrial in nature per Resolution CCR-24-08; and
WHEREAS, CalPERS requires a public agency to make Advanced Disability Pension Payments (ADPP) to safety members if CalPERS has not yet begun processing retirement benefits for that member.

NOW, THEREFORE, BE IT RESOLVED:

That the City of Mt. Shasta will make monthly ADPP to Richard G. Joyce until CalPERS makes a final determination in his Industrial Disability Retirement application.

BE IT FURTHER RESOLVED THAT These payments will be made for the preceding month and begin in June 2024. The first payment amount will be $1,208 for the period of May13, 2024 through May 31, 2024. All subsequent full month payments will be $1,907.

BE IT FURTHER RESOLVED That the reimbursement check from CalPERS should be made out to the City of Mt. Shasta and mailed to 305 North Mt. Shasta Boulevard, Mt. Shasta, CA 96067.

The foregoing Resolution was approved and adopted at a regular meeting of the City Council of the City of Mt. Shasta on the 10th day of June 2024 by the following vote:

AYES:

Mt. Shasta City Council Regular Meeting June 10, 2024 27 NOES:

ABSENT:

ABSTAIN:

DATED: June 10, 2024
ATTEST: CITY OF MT. SHASTA
__________________________________ ________________________________ Kathryn Joyce, Deputy City Clerk John Stackfleth, Mayor Mt. Shasta City Council Regular Meeting June 10, 2024 28 CITY COUNCIL AGENDA ITEM NO. 8
Date: June 10, 2024
To: Mayor and City Council
From: Director of Finance
Subject: Public Hearing on Fire Equipment Special Assessments RECOMMENDATION:

We respectfully request that Council hold the required public hearing for the Fire Special Assessment.

If any inequities are identified during the public hearing process or the Council disagrees with any of the recommendations of staff, the Levy listing can be further modified before the adoption of the Resolution.

Then adopt Resolution CCR-24-XX, A Resolution of the City Council of the City of Mt. Shasta Authorizing the Special Assessments for the Fire Department Equipment Funding Special Tax for the 2024-2025 Tax Roll and Authorizing the Mayor to Execute the Certification.

BACKGROUND:

On June 7, 1994, the electorate of the City of Mt. Shasta voted in favor of a tax initiative setting a special assessment of $8.00 per year for unimproved parcels, $24.00 per year for improved parcels, and $36.00 per year for commercial parcels for the purpose of providing funding for Fire Department equipment acquisition. The Siskiyou County Auditor's Office requires that the Board of Directors of any special assessment district certify that the assessments are valid and authorized before they are placed on the tax roll each year.

The Resolution, CCR-93-71, which proposed that special tax for fire equipment funding required that at least once each year the City Council hold a public hearing to consider all objections and protests to the tax as levied. The Resolution also gives the Council the authority to reduce or modify any tax levied. Notice of the Public Hearing was published in the Mt. Shasta Herald on May 29, 2024, and the public was given an opportunity to submit written comment, and until the time of the hearing to submit oral statements regarding the tax.

Staff has reviewed the report files from the Siskiyou County Auditor's Office regarding Measure A, Mt.

Shasta Fire #38 for the special fire tax. Staff has updated the reports to incorporate changes due to new construction permitted by the building department and any parcel changes approved since the roll was last certified.

The attached report, Measure A, Mt. Shasta Fire #38, reflects all the current assessments for the 2024-2025 tax year.

ATTACHMENTS:

Resolution CCR-24-XX
Proposed Resolution with Assessment Listing
Mt. Shasta City Council Regular Meeting June 10, 2024 29 RESOLUTION CCR-24-XX

A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA

AUTHORIZING THE SPECIAL ASSESSMENTS FOR THE FIRE DEPARTMENT EQUIPMENT FUNDING SPECIAL TAX FOR THE 2024-2025 TAX ROLL AND

AUTHORIZING THE MAYOR TO EXECUTE THE CERTIFICATION
WHEREAS, the electorate of the City of Mt. Shasta has approved the levy of a Special Tax for the purpose of funding Fire Department equipment acquisition; and WHEREAS, the term of the vote required the City Council to review the tax and hear any objections and protests once each year; and,
WHEREAS, a public hearing was noticed and held at a regular City Council meeting on June 10th, 2024; and
WHEREAS, the City Council has heard and considered any statements presented at the public hearing and the recommendations of staff.

NOW, THERFORE, BE IT RESOLVED, by the City Council of the City of Mt. Shasta that it finds the attached listing of levies for Measure A, Mt. Shasta Fire #38, as annotated and modified, valid and authorized for inclusion on the 2024-2024 Siskiyou County tax roll.

BE IT FURTHER RESOLVED, by the City council that the Mayor is authorized to execute the certification on behalf of the Council.
***********************
The foregoing Resolution was approved and adopted at a regular meeting of the City Council of the City of Mt. Shasta held on the 10th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: June 10th, 2024
CITY OF MT. SHASTA
__________________________
John Stackfleth, Mayor
ATTEST:
_____________________________________
Kathryn Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting June 10, 2024 30 To:

Phone#
Phone#
Siskiyou County Auditor-Controller
311 Fourth St, Room 101
Yreka, CA 96097
District name & Direct Charge# (Select Your Entity)
Primary Contact name:

District Email:

Secondary Contact name:

District Email:

SISKIYOU COUNTY AUDITOR-CONTROLLER
FY 2024/25

FINALIZE ASSESSMENT
Deadline: Submit Anytime Now, but NO later than August 10, 2024 Total Number of Parcels Charged (#)
Total Assessment Charged ($)
Upon satisfactory proof, Revenue and Taxation (R& T) Code section 4986 authorizes the Auditor to cancel all or any portion of any tax, penalty or cost if it was levied or charged: 1) More than once; 2) Erroneously or illegally; 3) On the cancelled portion of an assessment that has been decreased pursuant to a correction; 4) On property that did not exist on the lien date; 5) On property annexed after lien date by the public entity owing it; 6) On property acquired by a public entity; 7) On that portion of an assessment in excess of the value of the property as determined by the Assessor pursuant to R & T code section 469.

Furthermore, upon the recommendation of the Tax Collector, R & T Code section 4986.8 authorizes the Auditor to cancel “any tax bill if the amount is so small as not to justify the cost of collection. Any penalties, costs, fees, or special assessments….of any tax bill which is cancelled pursuant to this section may also be cancelled.” Any tax bill so cancelled will result in an adjustment to current tax apportionments. (See R & T Code section 4707).

The City/District certifies that it has read and understands the above paragraph regarding the potential effect on property tax apportionments if tax bills are cancelled. The City/District also certifies that it has complied will all applicable laws prior to imposing these taxes/fees/assessments and agrees to defend, indemnify, hold harmless and release the County from any and all actions, claims, and damages arising out of or in connection with any claim or lawsuit alleging that the City/District unlawfully imposed the taxes/fees/assessments.

The City/District certifies that the parcel data and taxes/fees/assessments have been updated to the City/District’s satisfaction. The City/District requests placement of the City/District’s taxes/fees/assessments on the 2024/25 Siskiyou County tax statements and agrees to the County’s administration charge of a ¼ of 1% (.0025) per GC 29142 & GC 29304. For Property Assessed Clean Energy (PACE) assessments and entities formed under the Improvement Bond Act of 1915 the administration charges will be a total of $16 per parcel annually. For those entities participating in PACE and formed under Mello Roos, we will have a separately agreed upon amount for the administration charge.

City/District approval of the complete listing, including all modifications, in electronic form and on hard copy. (Space bar will enter a check mark) 1
Mt. Shasta City Council Regular Meeting June 10, 2024 31 2 District Name & Direct Charge #:

Date
Date
Date
Date
Signature_______________________________ Print Name
Signature_______________________________ Print Name
Signature_______________________________ Print Name
Signature_______________________________ Print Name
Signature_______________________________ Print Name Date Please mail the original Finalize Assessments form to the address listed above. Email a copy to Jeff Heign at [email protected] along with the completed electronic listing of your assessments.

Mt. Shasta City Council Regular Meeting June 10, 2024 32 Agenda Item #9
Staff Report
Meeting Date: June 10th, 2024
To: City Council
From: City Manager
Subject: Proposed Stormwater Rate Adjustment-Raftelis’ Report Recommended Action:

Staff recommends the following: Listen to a recap to the Stormwater Rate Study and then recess Council to count ballots.

Summary:

The City of Mt Shasta currently charges property owners a flat fee of $1.00 per/mo. to help pay for the replacement of failing drainage infrastructure, an amount that is woefully inadequate. To determine a fair rate for property owners to pay that will allow the City to start funding the replacement of the aforementioned infrastructure, the City contracted with a company titled Raftellis. Raftellis is considered a nationwide expert in performing such studies in a manner that employs very specific methodology that assesses the percentage of impervious surface per eligible parcel within the City’s boundaries. The methodology to determine the aforementioned rate is outlined below. The rate per Equivalent Residential Unit (ERU) will be used as the target rate for a Drainage Assessment to be considered in as part of a 218 process.

The required increases over a four year period that will allow the City to fund the replacement of failing drainage infrastructure over a four year period are outlined in the table below:

FY 2025 FY 2026 FY 2027 FY 2028
Months Effective 12 12 12 12
Proposed Rate per ERU $15.00 $20.00 $24.00 $28.00
The Executive Summary outlining the current rate, funding needs, methodology, and assumptions are outlined in the text to follow (the full report is included as an addendum):

Executive Summary:

1.1. Introduction
The City of Mt. Shasta (City) currently provides stormwater service within its boundaries, recovering revenue through a flat fee charged to its approximately 2,028 water accounts. The City’s stormwater utility is intended to be financially self-sufficient with funding for capital and operating requirements derived primarily from user charges, which amount to approximately $24,000 annually. The City’s stormwater system consists of remnant creeks and wetlands interconnected to a network of pipes, drains, ditches, and culverts. Much of the current system is aging and in need of repair or replacement to continue proper X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting June 10, 2024 33 function and prevent system failure. As annual user charges currently provide inadequate funding to meet requirements for both operating and capital needs, the City has been unable to complete relevant capital projects. The need has become more apparent as the City has begun to experience storms of greater intensity which exacerbate the City’s drainage issues. The aging infrastructure of the City must be addressed to continue to provide benefits to the community. An update of the Stormwater Master Plan in 2020 identified opportunities to implement multi- benefit projects which address the stormwater challenges experienced by the City.

Raftelis used industry standard methodologies to develop a financial plan and rate structure alternatives with needed, enhanced funding to support a more robust stormwater program and allow the City to take opportunities to improve local water quality, flood management, and the local environment through stormwater management.

1.2. Study Goals and Objectives
The goal for this study was to develop a 5-year financial plan for the City’s stormwater utility from FY 2025 – FY 2028 (study period) in which:
• Rate revenues are sufficient to meet annual operating and capital expenditures, • Reserve levels are maintained in accordance with industry best practices1, and • The rate structure provides enhanced equity between customer classes compared with a flat rate.

1.3. Study Findings
The study team found that projected stormwater service revenue under the current rates and rate structure is insufficient to meet annual revenue requirements through the study period. To meet the City’s objectives, Raftelis recommends revenue adjustments following the schedule below for FY 2024 through FY 2028.

Table 1: Required Revenue Adjustments, FY 2025 - 2028
FY 2025 FY 2026 FY 2027 FY 2028
Annual Revenue Adjustments 1,100% 33% 20% 17%
These adjustments would increase annual rate revenues from approximately $24,000 to an average of approximately $1.4 million by FY2028, allowing the utility to enhance stormwater management. Following FY 2028, Raftelis recommends annual revenue adjustments of 3.0%. In addition, Raftelis recommends instituting and impervious area (IA) based rate structure with equivalent residential units (ERUs) serving as the units of charge. An IA based rate structure will improve the equity of revenue recovery between classes compared with the current flat rate per account. Under the recommended revenue adjustment and rate structure, the monthly bill for a typical single family property will increase from $1.00 to $15.00 in 2025 1 “Cash Reserve Policy Guidelines”, American Water Works Association, 2018 Mt. Shasta City Council Regular Meeting June 10, 2024 34

CITY OF MT SHASTA, CA
Stormwater
Rate Study
REPORT / JANUARY 30, 2024
Mt. Shasta City Council Regular Meeting June 10, 2024 35 227 W. Trade Street, Suite 1400, Charlotte, NC 28202
www.raftelis.com
January 30, 2023
Mr. Todd Juhasz
City Manager
City of Mt. Shasta
305 North Mt Shasta Boulevard
Mt Shasta, CA 96067
Subject: Stormwater Study Report
Dear Mr. Juhasz,
Raftelis is pleased to provide this Stormwater Rate Study Report (Report) for the City of Mt. Shasta (City) to support the City in establishing updated stormwater rates.

The major objectives of the study include the following:
 Develop financial plans for the stormwater utility to ensure financial sufficiency, meet operation and maintenance (O&M) costs, and ensure sufficient funding for capital needs.  Review current rate structures for the stormwater utility and design rate alternatives that recover annual revenue requirements and improve customer class equity.

The report summarizes the key findings and recommendations related to the development of the financial plans for the utility and the development of alternative stormwater rates.

It has been a pleasure working with you, and we thank you and the City staff for the support provided during the course of this study.

Sincerely,
Henrietta Locklear
Vice President
Mt. Shasta City Council Regular Meeting June 10, 2024 36 City of Mt Shasta / Stormwater Financial Plan & Rate Study Contents

1. Executive Summary ..................................................................... 6

1.1. Introduction ...................................................................................................................6

1.2. Study Goals and Objectives .........................................................................................6

1.3. Study Findings ..............................................................................................................6

2. Financial Plan ............................................................................... 8

2.1. Assumptions .................................................................................................................8

2.2. Revenue Requirements ................................................................................................8

2.2.1. Expenditures ................................................................................................................... 8

2.2.2. Reserves ......................................................................................................................... 8

2.3. Revenues .......................................................................................................................9

2.3.1. Current Rate Revenue .................................................................................................... 9

2.3.2. Grants and Other Sources of Funding ............................................................................. 9

2.3.3. Recommended Revenue Adjustments ............................................................................ 9

3. Rate Structure ............................................................................ 11

3.1. Background ................................................................................................................. 11

3.2. Rate Structure Analysis .............................................................................................. 11

3.2.1. Data 12

3.3. Units of Service ........................................................................................................... 12

3.3.1. Data Development and ERU Calculation ....................................................................... 13

3.3.2. Units of Service Calculation ........................................................................................... 14

3.4. Rates Under Recommended Structure...................................................................... 14

4. Final Recommendations............................................................. 17 Mt. Shasta City Council Regular Meeting June 10, 2024 37 City of Mt Shasta / Stormwater Financial Plan & Rate Study Tables
Table 1: Required Revenue Adjustments, FY 2025 - 2028 ....................................................................... 6 Table 2: Recommended Rate Structure ................................................................................................... 7 Table 3: Assumptions .............................................................................................................................. 8 Table 4: Reserve Targets ......................................................................................................................... 9 Table 5: Stormwater Utility Financial Plan Projections ........................................................................... 10 Table 6: Proposed Monthly Fee per ERU ............................................................................................... 10 Table 7: SFR Land Use Codes .............................................................................................................. 12 Table 8: Sample Statistics ...................................................................................................................... 14 Table 9: Sample Property ERU Calculation Example ............................................................................. 14 Table 10: Calculated Monthly Rates Under Recommended Structure, FY 2024 – FY 2028 ................... 14 Table 11: Proposed Rates Under Recommended Structure, FY 2025 – FY 2028 .................................. 15 Table 12: Recommended Rate Structure ............................................................................................... 15 Table 13: Comparison of FY2023 Current and Recommended Rates .................................................... 16 Table 14: Recommended Revenue Adjustments, FY 2025 - 2028 ......................................................... 17 Table 15: Recommended Rate Structure ............................................................................................... 17 Table 16: Proposed Rates Under Recommended Structure, FY 2025 – FY 2028 .................................. 17 Figures
Figures 1 & 2: Digitized SFR Parcels ..................................................................................................... 13 Mt. Shasta City Council Regular Meeting June 10, 2024 38 City of Mt Shasta / Stormwater Financial Plan & Rate Study

THIS PAGE INTENTIONALLY LEFT BLANK
Mt. Shasta City Council Regular Meeting June 10, 2024 39 City of Mt Shasta / Stormwater Financial Plan & Rate Study

1. Executive Summary

1.1. Introduction
The City of Mt. Shasta (City) currently provides stormwater service within its boundaries, recovering revenue through a flat fee charged to its approximately 2,028 water accounts. The City’s stormwater utility is intended to be a financially self-sufficient with funding for capital and operating requirements derived primarily from user charges, which amount to approximately $24,000 annually. The City’s stormwater system consists of remnant creeks and wetlands interconnected to a network of pipes, drains, ditches, and culverts. Much of the current system is aging and in need of repair or replacement to continue proper function and prevent system failure. As annual user charges currently provide inadequate funding to meet requirements for both operating and capital needs, the City has been unable to complete relevant capital projects. The need has become more apparent as the City has begun to experience storms of greater intensity which exacerbate the City’s drainage issues. The aging infrastructure of the City must be addressed to continue to provide benefits to the community. An update of the Stormwater Master Plan in 2020 identified opportunities to implement multibenefit projects which address the stormwater challenges experienced by the City.

Raftelis used industry standard methodologies to develop a financial plan and rate structure alternatives with needed, enhanced funding to support a more robust stormwater program and allow the City to take opportunities to improve local water quality, flood management, and the local environment through stormwater management.

1.2. Study Goals and Objectives
The goal for this study was to develop a 5-year financial plan for the City’s stormwater utility from FY 2025 – FY 2028 (study period) in which:
 Rate revenues are sufficient to meet annual operating and capital expenditures,  Reserve levels are maintained in accordance with industry best practices1, and  The rate structure provides enhanced equity between customer classes compared with a flat rate.

1.3. Study Findings
The study team found that projected stormwater service revenue under the current rates and rate structure is insufficient to meet annual revenue requirements through the study period. To meet the City’s objectives, Raftelis recommends revenue adjustments following the schedule below for FY 2025 through FY 2028.

Table 1: Required Revenue Adjustments, FY 2025 - 2028
FY 2025 FY 2026 FY 2027 FY 2028
Annual Revenue Adjustments 1,100% 33% 20% 17%
[1] Rate adjustments in FY2025 are expected to be implemented beginning in July 2024.

These adjustments would increase annual rate revenues from approximately $24,000 to an average of approximately $1.4 million by FY2028, allowing the utility to enhance stormwater management. Following 1 “Cash Reserve Policy Guidelines”, American Water Works Association, 2018 Mt. Shasta City Council Regular Meeting June 10, 2024 40 City of Mt Shasta / Stormwater Financial Plan & Rate Study FY2028, Raftelis recommends annual revenue adjustments of 3.0%. In addition, Raftelis recommends instituting an impervious area (IA)-based rate structure with equivalent residential units (ERUs) serving as the units of charge. An IA-based rate structure will improve the equity of revenue recovery between classes compared with the current flat rate per account. Under the recommended revenue adjustment and rate structure, the monthly bill for a typical single-family property will increase from $1.00 to $15.00 in July 2024.

Table 2: Recommended Rate Structure
Land Use Type Rate Structure
Single-Family Residential (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residential
(NSFR)
Fee calculated on measured IA;
1 ERU per 3,000 sq ft IA
Raftelis recommends that the stormwater financial plan be updated annually to reflect current estimates of revenue, operating expenses, capital improvement needs, and maintenance of reserve targets.

Mt. Shasta City Council Regular Meeting June 10, 2024 41 City of Mt Shasta / Stormwater Financial Plan & Rate Study

2. Financial Plan

2.1. Assumptions
The following data includes the major assumptions used in the study.

Table 3: Assumptions
Expense Inflation Factors
Operations and Maintenance
Capital

7.0% FY24; 3.0% thereafter

7.0%
Current Stormwater Accounts
Total, Residential and Non-Residential 2,028
Current Stormwater Fee
(per account per month)
Residential
Non-Residential
$1.00
$1.00

2.2. Revenue Requirements

2.2.1. Expenditures
The current and anticipated uses of funds include capital expenditure and operation and maintenance expenses (O&M). The costs of the City’s anticipated capital projects for FY2024 - 2028 are approximately $3.2 million (inflated). The largest projects are part of the Cold Creek Realignment and Restoration. This multi-phase project is expected to be completed in FY 2031 and is projected to cost approximately $6.1 million (inflated). Other projects include storm drainage replacement, street improvements, and retrofits, as well as installation of green infrastructure to provide proper storm drainage and treatment infrastructure.

O&M costs consist of regular inspections, cleaning, and maintenance, as well as seasonal program costs.

O&M averages approximately $40,000 annually during the study period.

2.2.2. Reserves
The City does not currently maintain a reserve balance. Raftelis recommends the City set target operating reserves at 60 days of operating expenses and capital reserves at the annual average of 5-years of capital expenses. This amount provides a reasonable operating allowance for sound stormwater utility operations and meets the reserve recommendation in the industry for a utility of this size.

To mitigate the impact that establishing operating and capital reserves in one year would have on rates, Raftelis recommends that both O&M and capital reserve targets be met by increasing the reserve amount incrementally. The annual average O&M reserve target over the study period is approximately $6,500; Raftelis recommends using 60-day calculated expenses from FY 2028 as a target. The annual average of 5- years of capital expenses ranges from a low of $850,000 to a high of $1.5 million over the course of the study period. Raftelis recommends using the 5-year average calculated in FY 2028 as a capital reserve target, which is approximately $1.3 million. By phasing in the reserve target at 20% annually, the full reserve target will be met by the end of the study period.

Mt. Shasta City Council Regular Meeting June 10, 2024 42 City of Mt Shasta / Stormwater Financial Plan & Rate Study Table 4: Reserve Targets
Reserve
Type Policy Target Reserve (end of study period)
20% of Total Reserve Target
(added per year)
O&M 60-day fund $6,929 $1,386
Capital
5-year average of
capital expenses
$1,266,094 $253,219
Total $1,273,023 $254,605

2.3. Revenues

2.3.1. Current Rate Revenue
The main source of funds for the stormwater utility is stormwater rate revenue. The current monthly stormwater fee of $1.00 per account generates approximately $24,000 annually.

2.3.2. Grants and Other Sources of Funding
The City actively pursues additional sources of funding in addition to rate revenues. In July 2023, Raftelis worked with the City to complete a submission for funding through the Clean Water State Revolving Fund (CWSRF) Program. The submission requested financial assistance in the form of planning and design funds for drainage improvement projects totaling $1,575,000. The CWSRF Program will provide funds in the fall of 2023. Following the planning and design stage, funding opportunities also exist with the CWSRF program; should the City decide to apply for this funding in the future, there is a better chance of award if the City can show the ability to match funds.

Raftelis also worked with the City to complete a submission in June 2023 for the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. This submission requested planning and design funds for deployment of alternative fuel infrastructure, which would include extensions of storm drainage infrastructure to the proposed sites. The total anticipated cost for planning and design is $2.7 million; the City has requested $2.16 million as part of this submission and, if awarded the grant, will require a 20% match. As this grants is currently pending, it has not been included as a source of revenue for this study. Should it be awarded, Raftelis recommends the City update its financial plan to account for the additional revenue.

2.3.3. Recommended Revenue Adjustments
Stormwater rate revenue should be set at a level that is sufficient to meet revenue requirements, finance the capital improvement program, and maintain adequate reserves. Raftelis recommends the City set target operating reserves at 60 days of operating expenses and capital reserves at the annual average of 5-year capital expenses. This amount provides a reasonable operating allowance for sound stormwater utility operations and exceeds the reserve recommendation in the industry for a utility of this size, which is a reserve equal to 60 days of operating expenses.

The City’s revenue under current rates is far outpaced by revenue requirements. To meet the City’s objectives, Raftelis has calculated the required revenue adjustments from FY 2025 – FY 2028. This adjustment would Mt. Shasta City Council Regular Meeting June 10, 2024 43 City of Mt Shasta / Stormwater Financial Plan & Rate Study increase annual rate revenues from approximately $24,000 to $1.4 million in FY2028, allowing the utility to meet its objectives.

Table 5: Stormwater Utility Financial Plan Projections
Description FY2025 FY2026 FY2027 FY2028
Annual Revenue
Adjustment
3,003% 33% 20% 17%
Total Rate Revenues $755,100 $1,006,800 $1,208,160 $1,409,520 Total Expenditures $267,301 $284,469 $1,144,327 $1,552,392 Net Cash Flows $487,799 $722,331 $63,833 ($142,872)
Ending Balance $1,947,803 $2,670,134 $2,733,967 $2,591,095 Target Reserves $509,209 $763,814 $1,018,419 $1,273,023 Over/(Under) Target $1,438,594 $1,906,320 $1,715,549 $1,318,072 [1] Rate adjustments in FY2025 are expected to be implemented beginning in July 2024.

In addition, Raftelis recommends updating the current rate structure from a per-account charge to an impervious area-based rate structure with equivalent residential units (ERUs) serving as the units of charge.

An IA-based rate structure will improve rate recovery equity between classes and clarity for customers. Under the recommended rate structure, the monthly fees for a typical single-family property are shown in the table below. This rate structure and its development are discussed in detail in the following section.

Table 6: Proposed Monthly Fee per ERU
Description FY2025 [1] FY2026 FY2027 FY2028
Months Effective 12 12 12 12
Monthly Fee per ERU $15.00 $20.00 $24.00 $28.00
[1] Rate adjustments in FY2025 are expected to be implemented beginning in July 2024.

Mt. Shasta City Council Regular Meeting June 10, 2024 44 City of Mt Shasta / Stormwater Financial Plan & Rate Study

3. Rate Structure

3.1. Background
The City’s current rate structure is a fixed charge per water account of $1 per month. There were no records to indicate whether this rate, established in the 1990s, was based upon the results of a utility rate study2. The purpose of the rate structure analysis is to revisit the City’s existing rate structure and provide recommendations on updates to the rate structure to improve equity, clarity, collections, administration, and/or revenue generation as needed.

3.2. Rate Structure Analysis
The rate structure currently in place in the City is a uniform flat monthly charge per account. Under this rate structure, all accounts are charged the same rate. The simplicity of this rate structure offers several benefits, primarily that it is easy to communicate and does not present an administrative burden. In addition, there is equality between all users, who are charged the same regardless of the characteristics of the land or developments associated with their account.

However, the current uniform rate structure presents certain drawbacks. The most significant disadvantage is the lack of precision in reflecting the impact of each property on stormwater runoff. Properties with significantly different levels characteristics that impact the quality and quantity of stormwater runoff might pay the same fee. As the main purpose of a stormwater utility is to manage stormwater runoff, charging all properties as if they have the same impact results in inequitable distribution of costs associated with this management.

The most important factor influencing a property’s demand upon the City’s stormwater system and program is stormwater runoff and the best surrogate for that demand is a measure of is impervious area. Using a rate structure founded on measured or effective IA is industry best practice. Implementation of a stormwater fee based on IA is a fair, equitable, and legally defensible stormwater rate structure. This approach directly ties fees to properties demand upon the system through their stormwater runoff, providing a rational nexus between a property’s charge and the demands upon the utility. Properties with more impervious surfaces, which contribute more to runoff and require increased stormwater management efforts, pay higher fees.

As such, Raftelis recommends implementing an impervious area-based rate structure which will recover the required revenues in an equitable manner that reflects the demand placed by each property. Included in this analysis is an updated Equivalent Residential Unit (ERU) determination, the methodology for which is described in detail below. The ERU represents the amount of impervious surface area of a typical single family residential (SFR) property in the City and serves as the unit of charge. ERUs should be periodically updated over time to ensure that they continue to accurately reflect the IA of a typical residential property as the development occurs and characteristics of the City change. 2 RFP: Professional Services for Stormwater Utility Rate Study, City of Mt Shasta, issued January 21, 2022.

Mt. Shasta City Council Regular Meeting June 10, 2024 45 City of Mt Shasta / Stormwater Financial Plan & Rate Study

3.2.1. Data
Raftelis used aerial imagery from 2022 and tax assessor data from Siskiyou County, CA to conduct the analysis. This data was used to determine which properties in the City were SFR and which were non-single family residential (NSFR) properties. SFR properties typically have one or two residential units per property.

NSFR properties include all properties not captured in the SFR definition, including multi-family, commercial, industrial, and institutional properties. To determine the proper classification for each parcel, Raftelis reviewed Siskiyou County tax assessor land use codes and reviewed aerial imagery. Table 7 includes land use codes that were determined to be SFR properties based upon land use codes and visual assessment of aerial imagery3. All other properties were considered to be NSFR.

Table 7: SFR Land Use Codes
Land Use
Code
Description Detail
112A Single Family Residential Mobile Home (A=LPT, B=Licensed) 113 Single Family Residential Class 1 to 3 Residence
114 Single Family Residential Class 4 Residence
115 Single Family Residential Class 5 Residence
115M Single Family Residential Class 5 Residence
116 Single Family Residential Class 6 Residence
116M Single Family Residential Class 6 Residence
117 Single Family Residential Class 7 Residence
118 Single Family Residential Class 8 to 10 Residence
214 Multi-Residential - Nonconforming use Class 4 Residence on Multi-Residential 215 Multi-Residential - Nonconforming use Class 5 Residence on Multi-Residential 216 Multi-Residential - Nonconforming use Class 6 Residence on Multi-Residential 221 Multi-Residential - Nonconforming use Duplex Type
313 Commercial - Nonconforming use Class 1 to 3 Residence on Commercial 314 Commercial - Nonconforming use Class 4 Residence on Commercial 315 Commercial - Nonconforming use Class 5 Residence on Commercial 316 Commercial - Nonconforming use Class 6 Residence on Commercial 112A Single Family Residential Mobile Home (A=LPT, B=Licensed)

3.3. Units of Service
To determine the units of service that will serve as the basis upon which all properties are built, Raftelis calculated the City’s ERU value using a sample of SFR properties. This value represents the amount of IA of a typical SFR within the City. We are recommending a flat rate for SFRs; thus each SFR will be assigned 1 ERU in the computation of units of service. Next, the impervious area on all NSFRs is digitized to determine the IA for each property, which is used to calculate the ERUs of each property. The sum of SFR and NSFR ERUs is the total units of service for the City and are used to calculate rates. The process of developing units of service is described in detail below.
3As properties can occasionally be misclassified in property records, individual property classes can be overridden in the bill file. This initial effort was completed to determine the population of SFRs versus non-SFRs.

Mt. Shasta City Council Regular Meeting June 10, 2024 46 City of Mt Shasta / Stormwater Financial Plan & Rate Study

3.3.1. Data Development and ERU Calculation
To calculate the ERU for the City, we conducted a random sample of 270 parcels which were determined to be single-family residences. This sample size was selected to ensure a 95% confidence level in the result. We ensured by visual review of the sample parcels that they encompassed a representative range of geography, structure age, and housing type. In some cases, an original randomly selected sample SFR property was not suitable to be included because it was obscured by vegetation and could not be accurately measured. In these cases, a visibly similar property from the same geographic region (the same block, if possible) was chosen to replace that sample property.

Once identified, the IA on each sample SFR parcel was digitized. Impervious area includes any surface that does not allow water to infiltrate the ground. Typical examples of IA include:
 Building roof top and canopies
 Concrete and asphalt pavement
 Structural decks and patios
 Brick and concrete pavers
 Gravel used for vehicular or pedestrian traffic and/or vehicle parking Figures 1 and 2 show examples of digitized SFR parcels. The sample property’s boundary is outlined in yellow while IA is shown in translucent blue.

Once properties were digitized, Raftelis calculated summary statistics for the sample set.

Figures 1 & 2: Digitized SFR Parcels
Mt. Shasta City Council Regular Meeting June 10, 2024 47 City of Mt Shasta / Stormwater Financial Plan & Rate Study s
Table 8: Sample Statistics
Maximum IA 18,060 sq ft
Minimum IA 1,099 sq ft
Average IA 3,429 sq ft
Median IA 3,082 sq ft
Based on this analysis, Raftelis recommends that the City define its ERU value as 3,000 to align with the calculated median IA of 3,082.

3.3.2. Units of Service Calculation
Raftelis calculated units of service separately for SFR and NSFR properties. SFRs were determined to be 1 ERU; therefore, these units were determined using a simple count of SFR properties.

NSFR units of service were calculated using a three-step process. First, NSFR properties were identified as those which did not fall into the SFR classification. Second, IA on these properties was digitized to determine the total square feet of impervious area for each property. Last, the ERUs for each parcel were calculated by dividing IA by the recommended ERU value of 3,000 sq ft, then rounding up to the next whole integer, as shown in the example below.

Table 9: Sample Property ERU Calculation Example
IA = 4,968 sq ft
ERUs = 4,968 sq ft / 3,000 sq ft per ERU = 1.656  2 ERUs The updated units of service calculated for this study include 1,206 SFR and 2,989 NSFR ERUs.

3.4. Rates Under Recommended Structure
Using the calculated units of service and rate requirements for each fiscal year of the study period, Raftelis calculated the required monthly rates under an IA-based rate structure.

Table 10: Calculated Monthly Rates Under Recommended Structure, FY 2024 – FY 2028 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Units of Service
SFR 1,206 1,206 1,206 1,206 1,206
NSFR 2,989 2,989 2,989 2,989 2,989
Total ERUs 4,195 4,195 4,195 4,195 4,195
Expenses
O&M $37,450 $38,574 $39,731 $40,923 $42,150
Capital $101,882 $228,728 $244,738 $1,103,404 $1,510,242 Reserve Targets
O&M $1,386 $1,386 $1,386 $1,386 $1,386
Mt. Shasta City Council Regular Meeting June 10, 2024 48 City of Mt Shasta / Stormwater Financial Plan & Rate Study Capital $253,219 $253,219 $253,219 $253,219 $253,219
Revenue Requirement $393,896 $521,865 $539,033 $1,398,891 $1,806,957 Non-Rate Revenue $1,575,000 $0 $0 $0 $0
Revenue to be Collected from
Rates
-$1,181,104 $521,865 $539,033 $1,398,891 $1,806,957
Calculated Rate per ERU -$23.47 $10.37 $10.71 $27.79 $35.90 The calculations in the table above assume rates will be in effect for 12 consecutive months starting at the beginning of the fiscal year (July 1). While these rates would provide adequate funding for planned expenditures over the study period, they fluctuate noticeably from year to year, and feature large rates that may be intolerable to rate payers. To avoid such variability in rates and keep rates from reaching such high peaks in later years, Raftelis recommends beginning with a lower rate and increasing rates gradually over the course of the study. Raftelis recommends using the rate schedule detailed below for FY 2025 through FY 2028.

Table 11: Proposed Rates Under Recommended Structure, FY 2025 – FY 2028 Description FY 2025 [1] FY 2026 FY 2027 FY 2028
Months Effective 12 12 12 12
Proposed Rate per ERU $15.00 $20.00 $24.00 $28.00
[1] Rate adjustments in FY2025 are expected to be implemented beginning in July 2024.

Raftelis recommends instituting an impervious area (IA)-based rate structure with equivalent residential units (ERUs) serving as the unit of charge. An IA-based rate structure will improve equity of revenue recovery between classes. Under this structure, all parcels with an SFR land use code will be charged using a flat rate of 1 ERU. The units of service for NSFRs will be calculated by dividing IA by the ERU value of 3,000 sq ft, then rounding up to the nearest whole number, as shown in the example in Table 9. This structure is shown in the table below.

Table 12: Recommended Rate Structure
Land Use Type Rate Structure
Single-Family Residential (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residential
(NSFR)
Fee calculated on measured IA;
1 ERU per 3,000 sq ft IA
Under the recommended rate structure, the monthly bill for a typical single-family property will increase from $1 to $15.00 in July 2024.

Mt. Shasta City Council Regular Meeting June 10, 2024 49 City of Mt Shasta / Stormwater Financial Plan & Rate Study Table 13: Comparison of FY2023 Current and Recommended Rates Description Current Rates,
FY 2023
Recommended Rates,
FY 2025 [1]
Charge per bill $1.00 per account $15.00 per ERU
[1] Rate adjustments in FY2025 are expected to be implemented beginning in July 2024.

Mt. Shasta City Council Regular Meeting June 10, 2024 50 City of Mt Shasta / Stormwater Financial Plan & Rate Study

4. Final Recommendations
The study team found that projected stormwater service revenue is insufficient to meet annual revenue requirements through the study period. Raftelis recommends rates be increased to meet revenue requirements and sufficiently fund operating and capital expenditures, as well as provide adequate reserves through the study period.

To meet this goal, Raftelis recommends revenue adjustments following the schedule below for FY 2025 through FY 2028.

Table 14: Recommended Revenue Adjustments, FY 2025 - 2028 FY 2025 FY 2026 FY 2027 FY 2028
Annual Revenue Adjustments 3,003% 33% 20% 17%
These adjustments will increase annual rate revenues from approximately $24,000 to an average of approximately $1.1 million, allowing the utility to meet its goals. Following FY 2028, Raftelis recommends annual revenue adjustments of 3.0%. In addition, Raftelis recommends instituting an impervious area-based rate structure with equivalent residential units (ERUs) serving as the units of charge. Under the recommended rate structure, SFRs will be charged as 1 ERU, and units of service for NSFRs will be calculated based on measured IA.

Table 15: Recommended Rate Structure
Land Use Type Rate Structure
Single-Family Residential (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residential
(NSFR)
Fee calculated on measured IA;
1 ERU per 3,000 sq ft IA
Under this rate structure and recommended revenue adjustments, the monthly bill for a typical single-family property will increase from $1.00 to $15.00 in July 2024. Proposed rates are shown in the table below.

Table 16: Proposed Rates Under Recommended Structure, FY 2025 – FY 2028 FY 2025 [1] FY 2026 FY 2027 FY 2028
Months Effective 12 12 12 12
Proposed Rate per ERU $15.00 $20.00 $24.00 $28.00
[1] Rate adjustments in FY2025 are expected to be implemented beginning in July 2024.

Raftelis recommends that the stormwater financial plan be updated annually to reflect current estimates of revenue, operating expenses, capital improvement needs, and maintenance of reserve targets.

Mt. Shasta City Council Regular Meeting June 10, 2024 51 Agenda Item #14
DATE: June 10, 2024
TO: Mayor Stackfleth and City Council
FROM: Finance Director Terrell
SUBJECT: 2024-2025, 2025-2026 Proposed Operating Budgets All Funds RECOMMENDATION:

We respectfully request your review and discuss the Proposed Operating Budgets All Fund for fiscal year 2024-2025, 2025-2026.

BACKGROUND:

General Fund:

Our City relies heavily on Sales Tax and Transient Occupancy Taxes (TOT) they are represented below for comparison purposes.

Pre-COVID actual 2018-2019 TOT $821,454 Sales Tax $1,260,633 Actual 2019-2020 TOT $727,545 Sales Tax $1,287,491
Actual 2020-2021 TOT $1,037,318 Sales Tax $1,523,959
Actual 2021-2022 TOT $1,186,841 Sales Tax $1,665,866
Actual 2022-2023 TOT $1,254,916 Sales Tax $1,693,783
Budgeted 2023-2024 TOT $1,224,000 Sales Tax $1,724,000
Budgeted 2024-2025 TOT $1,468,000 Sales Tax $1,760,000
Budgeted 2025-2026 TOT $1,475,000 Sales Tax $2,500,000
For fiscal year 2023-2024 General Fund revenues are estimated at $6.180 million, which is approximately $365,180 higher than the 2022-2023 actuals. The new 2024-2025 budget includes projected increases in the TOT due to the voter approved increase to the TOT rate. The 2025-2026 budget begins with no change in sales tax then shows a 1% increase in the modification column to show the expected difference if a change is approved by the voters.

In determining expenditures for the General Fund, we start with employee and benefit costs as a starting point. The authorized positions worksheet is a required part of developing the budget and incudes the increases already approved by Council. Union negotiations begin in April of 2024 and the union requests were rejected. There are pending grants that may increase fire positions and this too is not a part of this budget. Each department head then developed all other costs within their departments using historical data. The first attempt for the 2024-2025 budget was returned to staff to reduce the projected budget shortfall of $310,000 to zero. We have made reductions in several areas that include the reduction of one fire chief position, a mandated reductions in overtime in both fire and police, reallocation of insurance, no transfer to the Mt. Shasta City Council Regular Meeting June 10, 2024 52 equipment replacement fund, a reversal of the Council stipend back to the previous amount, and a reduction of the 22nd Avenue contract for hybrid meeting live meeting broadcast to recorded meetings. While those reductions did reduce the shortfall to zero there have been several other increases and modifications that now makes the shortfall in the $50,000 range. Those changes include an increase to workers compensation, a modification to the 22nd Avenue contract to record meetings rather than live meeting broadcasts, the hiring of a new Finance Director while the old Director stays on for a short time for training, an increase for towing fees, and a net zero change for the Youth Conservation Crew and the Fire Grant.

The transfer from Gas Tax for Snow Removal is anticipated to be about $40,000, which is much less than the previous year due to the snow season we had this year. We expect the administrative cost allocation to be in the $350,000 range. In total General Fund expenditures are projected at $6.462 million.

The General Fund is projected to have a carryover of around $1.555 million. This creates a reserve of about 25.16% going into the 2024-2025 fiscal year. With a projected loss of around $50,000 for the 2024-2025 fiscal year that leaves $1.502 million carryover and a 23.44% reserve going into 2025-2026.

For the 25-26 projected budget year I have begun by using projected revenue fairly close to where it was projected in 24-25 in the preliminary column. Then we show changes for a 1% sales tax increase, and a 2 ½ percent increase to salaries. Any other large changes are for net zero revenue and expenses for already awarded grants. The result of no sales tax or salary increases the loss is in the $141,000 range. If those increases are realized, then the result is a positive net of approximately $526,000.

Enterprise Funds:

In the Drainage Fund we continue with the determination of potential new rates with the proposition 218 process currently underway. Shortfalls for the contract labor for this analysis will be made up through the new rates if the process is unsuccessful the shortfall will need to be provided by the general fund and /or economic enhancement fund.

In the Solid Waste Fund, we are continuing negotiations between the City and Waste Management to determine which entity will be billing for the continued service provided by Waste Management. We anticipate this coming to Council soon.

In the Water and Wastewater funds budgets reflect the rate increases as specified in the rate studies. In the Wastewater fund an additional employee was budgeted as a part of the study and has been reflected in this budget as well as the previous budget. There are no projects expected in fiscal year 2024-2025.

Special Revenue Funds
In the Gas Tax and Transportation Funds we had anticipated approximately $500,000 to $750,000 in construction to occur this summer into fall of 2024, however Siskiyou County road Mt. Shasta City Council Regular Meeting June 10, 2024 53 crews are not available for the fiscal year 2024-2025 schedule. The city has now shifted focus and intends to use gas tax, STIP and LTC funding to overlay portions of Mt. Shasta Blvd. The North Mt. Shasta Blvd. project is budgeted at $410,000 coming out of STIP, and gas tax in the 24/25 budget year, The South Mt. Shasta Blvd. overlay project is budgeted for $512,000 and comes out of gas tax and LTC in the 25/26 fiscal year.

In the CDBG for Food and Subsistence programs have been completed with the only current funding to be for Senior Snow Removal.

For the Brownfield removal of the stockpiled soil at the old Roseburg has been and the site is currently doing survey’s to determine deed restrictions on portions of the property.

In the rest of the special revenue funds they are consistent from year to year and are reflected as such.

Mt. Shasta City Council Regular Meeting June 10, 2024 54 Mt. Shasta City Council Regular Meeting June 10, 2024 55 Mt. Shasta City Council Regular Meeting June 10, 2024 56 Mt. Shasta City Council Regular Meeting June 10, 2024 57 Mt. Shasta City Council Regular Meeting June 10, 2024 58 Mt. Shasta City Council Regular Meeting June 10, 2024 59 Mt. Shasta City Council Regular Meeting June 10, 2024 60 Mt. Shasta City Council Regular Meeting June 10, 2024 61 Mt. Shasta City Council Regular Meeting June 10, 2024 62 Mt. Shasta City Council Regular Meeting June 10, 2024 63 Mt. Shasta City Council Regular Meeting June 10, 2024 64 Mt. Shasta City Council Regular Meeting June 10, 2024 65 Mt. Shasta City Council Regular Meeting June 10, 2024 66 Mt. Shasta City Council Regular Meeting June 10, 2024 67 Mt. Shasta City Council Regular Meeting June 10, 2024 68 Mt. Shasta City Council Regular Meeting June 10, 2024 69 Mt. Shasta City Council Regular Meeting June 10, 2024 70 Mt. Shasta City Council Regular Meeting June 10, 2024 71 Mt. Shasta City Council Regular Meeting June 10, 2024 72 Mt. Shasta City Council Regular Meeting June 10, 2024 73 Mt. Shasta City Council Regular Meeting June 10, 2024 74 Mt. Shasta City Council Regular Meeting June 10, 2024 75 Mt. Shasta City Council Regular Meeting June 10, 2024 76 Mt. Shasta City Council Regular Meeting June 10, 2024 77 Mt. Shasta City Council Regular Meeting June 10, 2024 78 Mt. Shasta City Council Regular Meeting June 10, 2024 79 Mt. Shasta City Council Regular Meeting June 10, 2024 80 Mt. Shasta City Council Regular Meeting June 10, 2024 81 Mt. Shasta City Council Regular Meeting June 10, 2024 82 Mt. Shasta City Council Regular Meeting June 10, 2024 83 Mt. Shasta City Council Regular Meeting June 10, 2024 84 CITY COUNCIL AGENDA ITEM #15
DATE: June 10, 2024
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT: Establishment of Appropriations Limits for 2024-2025 Fiscal Year RECOMMENDATION:

We respectfully request Council review the choice of inflation facts and calculation of the appropriations limit and adopt Resolution CCR-24-XX, A Resolution of the City Council of the City of Mt. Shasta Establishing an Appropriations Limit for Fiscal Year 2024- 2025.

BACKGROUND:

The voters of the State of California amended the Constitution with Proposition 4 adding Article XIII B in the early 1980's to require cities to establish an absolute limit for appropriations from the proceeds of taxes during a fiscal year. This was primarily to prevent jurisdictions from circumventing the intent of Proposition 13 by using debt financing. This limit applies only to the proceeds of taxes and does not affect the utility enterprise funds that are supported by user fees and charges. The limit for the City is quite high -- in fact, more than double the City’s General Fund revenues -- and is not likely to ever have an impact on operations, unless the City were to undertake an unusually large capital project in the General Fund or Gas Tax Funds.

The limit is based on a base year amount that is adjusted each year for population growth and inflation. The figures for population growth are provided by the State Department of Finance each year. Jurisdictions then have a choice of the measure of inflation that they use to calculate the limit. One measure is the statewide change in per capita personal income, which is also provided by the Department of Finance. The other measure is the growth in the assessment roll due to local nonresidential construction.

During the last year the population of Mt. Shasta decreased slightly by .25% according to the Department of Finance estimates. The trend had been slight decreases for the last few years. The change in California per capita personal income was 4.40% and we have used

4.40% to report.

We have not received the Siskiyou County Assessor’s Office report for growth in assessed valuation of non-residential property over the last five years and the Assessor indicated that he believes that factor will be close to zero.

Mt. Shasta City Council Regular Meeting June 10, 2024 85 Historically the statewide growth in per capita income has been much larger than the growth in assessed valuation even when the calculation was somewhat inflated.

Although the income numbers have slowed in the last few years, and there has been some perceptible increase in new business properties constructed or remodeled in the City, the assessed valuation figure continues to significantly lag the growth in statewide per capita income. Therefore, the income figure has been used to calculate the appropriations limit.

Using the growth in per capita income factor results in an allowable increase of the appropriations limit of 4.40% for the upcoming fiscal year. The calculated appropriations limit for 2024-2025 is $10,697,022 which is well above the projected General Fund expenditures of 6.462 million and Gas Tax expenditures of approximately $0.

Staff has prepared a resolution for Council consideration making the choice to use the growth in per capita income as the measure of price change for calculating the appropriations limit and setting the appropriations limit as calculated at $10,697,022.

ATTACHMENTS:

Calculations and Data
Proposed Resolution
Mt. Shasta City Council Regular Meeting June 10, 2024 86 RESOLUTION CCR-24-XX

A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA

ESTABLISHING AN APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2024-2025
WHEREAS, Article XIII-B of the California Constitution requires that an appropriations limit be established for all proceeds of taxes accruing to state or local governments each fiscal year; and
WHEREAS, Article XIII-B specifies that the appropriations limit may be increased by the growth in population, and either the growth in statewide per capita income or the growth in assessed value of non-residential property due to construction; and WHEREAS, the City Council of the City of Mt. Shasta selects the percentage change in California per capita income of 4.4% as the cost-of-living factor to be used in calculating the appropriations limit; and
WHEREAS, the City of Mt. Shasta has had a population change of -.25% by the California Department of Finance’s estimate as of January 1, 2024; and WHEREAS, the City of Mt. Shasta using these two factors has calculated the required appropriations limit for 2024-2025.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mt. Shasta that the appropriations limit for all proceeds of taxes is established for fiscal year 2024-2025 at Ten Million six hundred ninety-seven thousand twenty-two dollars (10,697,022).

The foregoing Resolution was Approved and Adopted at a regular meeting of the City Council of the City of Mt. Shasta on the 10th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: June 10, 2024
CITY OF MT. SHASTA
John Stackfleth, Mayor
ATTEST:

Kathryn Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting June 10, 2024 87 Mt. Shasta City Council Regular Meeting June 10, 2024 88