National City City Council
February 21, 2023

February 21, 2023

Strategic Plan Category and Councilmember Notes
Regarding Their Priorities

City Manager Notes and Plans for FY 2023-24

1. Balanced Budget and Economic Development

 Address future deficit and maintain a balanced budget  Future deficit projected; need to diversify revenue
 Understand the budget process (one-time vs ongoing expenses)  Understanding levels of service we can provide based on financial resources; use of funding for core city services
 Potential new development by Plaza Bonita
 Increase property tax through home sales; increase the percentage of for-sale housing

 Be committed to revenue generation for General Fund without conditions  Focus on staffing levels for existing core service and stay competitive with meaningful and sustainable wage increases for our workers  CarMax/Cannabis should be completed in the near future with revenue the following approximately a year after that
 Other initiative(s) such as Balanced Plan/Downtown revitalization, parcel tax or other revenue measure will take more time
 Consider and analyze revenue measures for next two elections  Recognize that tax-exempt affordable housing projects do not create tax revenue but expand service demands; need to find a balance through policies, plans, programs, and projects that maximize resources for delivering services  Explore alternate funding sources through partnerships and grants

2. Communication and Outreach

 Improve overall communication and outreach and tailor some communications by district
 Increase the level of engagement and connection to community  Connecting people in the community to local government; connect with our constituents post-COVID
 How we communicate and relay information to residents and businesses
 Tailor community outreach for feedback by district

 Establish balance and consistency between staff and councilmember communications and outreach efforts
 Recognize the resources and be realistic about staff capabilities  Utilize boards, commissions and committees; regional assignments, and staff liaisons  Determine best practices for restarting Neighborhood Councils or other engagement strategies (District Councils?); consider staffing and Communications Manager  Utilize analysts in each functional area to collaborate on communication materials provided to the public; establish staff working group
 Develop quarterly management report for City Council that includes financial data, service requests, calls for services, and major priorities  Provide weekly staff updates to Councilmembers with department detail

February 21, 2023

3. Health, Environment, and Sustainability
 Continuation of existing projects
 We are hiring a Health/Environmental Justice Planner that will provide staff support for a potential Health and Environmental Justice (HEJ) Committee.  The HEJ committee can help guide policies and priorities such as amortization of non-conforming toxic uses
 San Diego Community Power (SDCP) will be rolled out to SDG&E customers and we can work on other energy initiatives through them.

4. Housing and Community Development

 Increase home ownership opportunities and the ratio of ownership to rental housing (build more townhomes, potential to use City property for home ownership development, incentives for developers)
 Improve permitting and development process for greater efficiency
 Address homelessness through partnerships with other agencies  Interest in rent stabilization

 Continue to enhance over the counter permits and streamline plan reviews for large projects and small, like ADUs.
 Will finalize our Focused General Plan Update (FGPU) in 2023 where we update housing element and related policies including House National City  Implemented rent stabilization on mobile home parks in 2022 and can continue to address specific problems in the community regarding tenant protections  Overall rent stabilization measure failed at the ballot box in 2020. State and region continue to expand renter protections and we need to keep up with best practices.  Clarify our role and influence regarding homelessness on regional, state and federal initiatives and maximize outcomes for National City
 Transition HOT to HOME outreach and remain persistent in addressing neighborhood concerns.
 Support Navigation Center and other high impact programs provided by service providers

5. Parks, Recreation and Library
 Provide these important city services

 Consider staff options to help define after school programming and/or youth development
 Recognize what school and other non-governmental organizations (NGOs) are already providing
 Finish plans and secure funding to build park improvements at all three parks  Develop a vision for a “youth development center” at Kimball Park that incorporates the rebuild of the Kimball Rec Center.
 Strengthen partnerships with local schools
 Maintain “Age-Friendly” community and intergenerational programming

6. Public Safety

 Enhance public safety through short- and long-term solutions to crime involving youth

 Center for Public Safety Management (CPSM) reports have been presented to City Council and will guide priorities for Police and Fire
 Recruitment pipelines/programs (youth development)

February 21, 2023

7. Transportation Choices and Infrastructure

 Maintain and improve infrastructure for the enjoyment of community; need sufficient funding
 Provide and maintain basic city services that impact quality of life (i.e., trash cans, lighting, roads, parks)

Consider infrastructure through the separate components we maintain:
 Streets/Pavement: update PCI and prioritize resources accordingly.  Address street lights and best practices for signals and traffic control  Sewer/Wastewater: Implement master plan and ongoing maintenance  Storm water: Identify funding sources and prioritize projects  Parks: Finalize funded projects and continue assessing needs

Footnote from Chief Tellez:

The Police Department continues to prioritize our engagement with community youth. In California, several changes have occurred that have reduced penalties for youth and/or decriminalized crimes normally committed by youth. While we continue to enforce the law by arresting those that commit crimes, it is essential that as laws change, we continue to change and adapt as well. The Police Department has taken the following proactive steps to engage youth and reduce youth crime:

1. Increased the number of School Resource Officers (SRO) in the elementary and secondary schools, from 2 to 3 officers.

2. The SROs are providing curriculum instruction at the elementary schools regarding bullying, general safety and cyber bullying. The SRO presence at the school provides a positive law enforcement role model. Their presence at the school is also intended to deter crime.

3. Prostitution has once again become a problem in our city due to a recent change in the law that decriminalized solicitation for prostitution. Unfortunately, young people are forced to work in this industry against their will. In order to identify victims, the department works in collaboration with the county Human Trafficking Task Force (HTTF) to identify victims and arrest those that prey on them.

4. The police department has a long-standing working partnership with South Bay Community Services (SBCS) to provide counseling and diversion services to youth that commit crimes. Our diversion program identifies youth with minor criminal violations that can benefit from counseling and community services versus custody. SBCS provides wraparound services to youth and their families to address the problem holistically with the goal of steering youth from committing additional crimes.

5. The department has established partnerships with community youth centers that service At Risk Youth and their families. Officers not only give of their time to work with youth as volunteers, but officers also frequently conducted presentations regarding gang awareness, cyber safety, and law enforcement careers. The presence of officers in these youth centers not only provides a positive role model but also provides engagement opportunities to build meaningful relationships with youth in our community.

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2023 GOAL SETTING AND

BUDGETING KICK-OFF
February 21, 2023

Process and Schedule
• January - Facilitated Interviews of City Council regarding Individual Goals and Expectations • Feb 1-3 - New Mayor and Councilmembers Academy by CA League of Cities • Feb 21 Regular Meeting - Goal Setting and Budgeting Kick-Off • Initial Presentation of Council Priorities
• Current Strategic Plan – 7 Focus Areas – Comprehensive Update in 2024 if Needed • Introduction to Budgeting
• March 7 – Recruitment/Retention Update
• March 21 – Initial 5-year Financial Forecast and Presentation of Current Priorities from Staff • March 24 – All Day Facilitated Workshop on Council Priorities and Teamwork • April 18 – Presentation of Recommended Budget and Workshop to Get Direction • May 16 – Follow up Workshop based on Direction Provided • June – Adoption of Balanced Budget

7C’s Pledge
We Pledge to Provide CustomerService through a Culture of… Courtesy
We treat everyone with dignity and respect.

Collaboration
We work to achieve common goals and value our differences.

Communication
We communicate openly, honestly, and with clear, consistent messages.

With a Commitment to Our Community!

 City employs
approximately 400
essential workers
 National City is a
full-service city (no
public safety
contracts)
 Committed work
force that relies on
fiscal sustainability
 Boards,
Commissions, and
other official
committees
4 Core Services = People + Partnerships

7 Functional Groups
• Police
• Fire
• Public Works/Engineering
• Community Development
• Library & Community Services
• Housing Authority
• Leadership & Administration
• City Manger and Attorney Offices
• Finance and Human Resources
• Information Technology
• City Clerk

Introduction to Budgeting

Budget 101
Fund Accounting (GASB)
General Fund
Sewer, Section 8, Streets, Etc…
Housing and Parking Authorities
Budget versus Actuals
Budget is a Forecast of Revenues and Expenditures
Annual Process with 5-Year Horizon
Actual Results are Audited and Provide through ACFR
Budgeting – Operating/Accounting - Auditing
8 Page 416 of 432
Ongoing Revenue
Generating General Fund Revenue
 Sales Tax – Organic versus Incremental
 Cost Recovery for Services and Enforcement
 Use One Time Revenues to Improve Land Use and Encourage Redevelopment
Other Potential Strategies
 Continue Business Recruitment, Retention, and Expansion  Expand Housing and Parking Authorities
 Explore Assessment Districts, BIDs, and Infrastructure  Pursue Grants, Incentive Programs, and Opportunity Zones Increased ongoing revenues will be needed to fund growing ongoing expenditures
9 Page 417 of 432
Ongoing Expenditures
PERSONNEL COSTS – LABOR CONTRACTS
Meaningful and Sustainable Wages for Our Workers
Recruitment and Retentions Efforts
Consider staffing levels through organizational assessments and negotiations  Pension Costs
 Pension Obligation Bonds
 Section 115 Trust
 Potential Strategies
 Use one time revenues to create ongoing savings
 Partner with other service providers
 Create incentives for cost savings
 Match one time revenues with one time expenditures
 Remain focused on growing General Fund Revenues
10 Page 418 of 432

Current Reserves
Reserves Target Balance* Policy Level
Unassigned Fund Balance $ 6,400,000 $13,956,000 10% General Fund Op Bdgt Economic Contingency
Reserve
$ 12,800,000 $ 12,800,000 20% General Fund Op Bdgt
Liability Reserve $ 13,264,000 $ 16,615,000 80% confidence level Facilities Maintenance $ 2,880,000 $ 2,880,000 4.5% General Fund exp Vehicle Replacement $ 3,141,900 $ 2,770,265 30% book value of vehicles Pension Trust (115) $ 18,400,000 $ 6,393,549 2 years UAL payments OPEB Trust $ 4,821,000 $ 3,133,184 80% OPEB liability
* All balances are as of June 30, 2022 (unaudited) except for unassigned fund balance, which is as of June 30,2021. Unassigned fund balance at June 30, 2022 is expected to be higher. Page 421 of 432
Introduction to Goal Setting

Being
Focused
Gets to
Success
We can’t do
everything,
But we can do
some things
very well
Successful City Governments
• Respect the ongoing work of City departments as the
day-to-day operations must be well managed – and that
takes time
• Have a collaborative, trusting relationship between the City Council and staff
• Set a few focused priorities, with a staff work plan to achieve them
15Page 423 of 432
Balanced budget and economic development
Communication and outreach
Health, environment and sustainability
Housing and community development
Parks, recreation and library
Public safety
Transportation choices and infrastructure
16 7 Strategic Focus Areas

Commitments
from Staff
Align programs, projects and
activities to further Council priorities,
consistent with budget, staffing and
workloads
Build Council direction into budget
and work plans
20Page 428 of 432
Staying on
Track with
Priorities
Regular progress reporting
Delay new Council-initiatives
until next goal setting cycle
or mid-year if capacity exists
21 UNLESS

Best
Practice
Criteria for
Adding
Initiatives
and
Projects
Mid-Cycle
Emergency (natural disaster, pandemic, civil unrest)
New outside funding opportunity that is time-sensitive
New multi-agency opportunity that cannot be delayed
Community safety issue that must be addressed in near
term
Changes in law or mandates
Otherwise – wait until next goal
setting/budgeting process
22Page 430 of 432
Closing
Comments
23

Public Comment
City Council
Comments and Direction