From: Ted Godshalk
To: Clerk
Cc: Public Comment
Subject: Public Comment for Item 10.2 for September 1, 2026 from Mr. Ted Godshalk Date: Tuesday, September 1, 2026 1:54:52 PM
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Public Comment for Item 10.2 for September 1, 2026 from Mr. Ted Godshalk:
City Manager’s Business and Fiscal Sustainability Plan ( FY 2027-2031):
It is a document with Omissions and Admissions.
The Executive Summary and the first three pages summarize the conditions pretty well.
PAGE 3: There is not enough data here. The numbers should go back to 2021.
million, 4.4 million, and 4.7 million were never “unknown” at budget making time. These amounts came first and then came the salary increases, maintenance and overhead, and projects that have led to no reasonable outcomes, One example of this is the 7 vacant in-fill properties study. I recommend selling all vacant lots and saving the income for now. Do not “give” any developer anything at this time, that includes favorable leases.
Why is the first bullet point important? Having the highest per capita sales tax revenue in SD County (at the top )while having the Below county average household income and above average poverty (point three in Weaknesses.) is a comment about the stress our sales tax and bonus Prop D tax put on our residents. It is not good.
Also in weaknesses, we see the first Admission. It states, “recent compensation and staffing increase were approved without a matched, identified revenue offset.” Bingo.
Opportunities: The two at the bottom of the page are tenuous, at best. When the Port District continually treats NC like part of its colony holdings, NC will always suffer with little income from the land originally owned by NC and our residents.
First, the Pepper Park expansion is pitifully small compared to everything that is going on in Chula Vista and San Diego. The Park does not make NC any money, either, but a lot of staffers and politicians feel better.
The inclusion here of the RV park, and TWO HOTELS should come with a financial analysis of income generated FOR the city. If someone does that, then the Council can look at the amount of TOT or sales tax and figure out if the financial situation can be remedied. Get some estimates for all revenue sources included in this PLAN document.
Cannabis is mentioned on page 7. Compared to other types of businesses in NC sale tax generators groups, Cannabis is outperformed by companies like: Fast food restaurants, clothing stores, auto parts stores, and grocery stores. With this analysis alone, a case can be made that Cannabis is not the best industry to deal with in our city. You need to search for revenue, not favors and flavors.
Threat : The biggest Omission comes here. The sixth bullet point should state that it a threat to NC financial health if the Council were to continue to bend to employee group pressures.
It is very important to review the risk management for all city operations. Also, Internal Service charges have been allowed to purposely rise. The spending by staff needs better watching. Hopefully a project based approach will help. “Formally re-commit to the Council’s reserve policy targets. “?? This was pointed out by many Council watchers a long time ago. All Council POLICY avoidance must stop. If there is no commitment to this writing, no one will trust that NC government can right the ship.
Page- 11— the timeline is a good start at setting the milestones. Each year it should be revisited. This year it is very important that we see a projected budget WITH REVENUE and Expenditures for FY 2031. The TOT amounts must be estimated for everyone to understand the quality of this plan’s main development project.
A possible addition to this chart would be another column to remind everyone of the hindrances to success in each year.
A big critique of the Page 13 Implementation Roadmap: point 2 states that a “Launch of a structured business-engagement process on the tax reform to address the process concerns and improve the odds of voter approval,” show exactly how the City of National City has always operated. Is it right for the staff to help the elected officials navigate a negotiation with the business community to propose a ballot measure that few of them will vote on? Furthermore, it appears that the voter and resident opinions in this matter are of less importance. Does it come down to money again? Yes. Will the City tax the poorest community again and this time, like with Measure D, work with the largest corporations, the employee groups, the Mile of Cars, Plaza Bonita, the Chamber of Commerce, and outside interests to get it done? Wow.
This will be discussed.
The Plan’s Conclusion:
It is good to see the third point state that FY 2029 will have a formal update. A lot needs to happen, and much the internal cuts that the staff must make have not been listed in this document.
The "short runway” mentioned has been put down by the Incumbent City Councilmembers.
Again, the only two items being considered for improving the revenue side are mentioned here and they are simply not enough.
IMPORTANT THINGS THAT SHOULD BE ADDED:
1- List all Redevelopment Successor Agency land and City-Owned Property that can be sold and current estimates of values. Include parking lots at Plaza Bonita, Bay Marina lots, 7 small in-fill lots, City Hall property, Granger Hall property, others… including partnerships with the Drive -In owners. National City needs another Plaza Bonita to start fixing the structural deficit.
2- Why is the Port District’s MSA not listed anywhere in the document? Consider a plan to withdraw from the San Diego Unified Port District and development of several large condo buildings (nat a mix of price points) and commercial space along San Diego bay , south of 24th Street.
3- Why has homeownership expansion not been listed. NC can do more to increase PROPERTY TAX income. Market rate housing must be built and the waterfront is the best place for that to happen.
4- Why is there no discussion of the attraction of a large manufacturing company? Sales tax AND good jobs can come from the right company.
Ted Godshalk