Page | 1 City Council Meeting Minutes (June 3, 2024)
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL
UNOFFICIAL MEETING MINUTES
JUNE 3, 2024
1. CALL TO ORDER
Mayor Freels called the special budget workshop to order at 5:31 p.m. in the Council Chambers, 311 Second Street, San Juan Bautista California.
PLEDGE OF ALLEGIANCE
Mayor Pro Tem Jordan led the pledge of allegiance.
ROLL CALL Present:
Councilmember John Freeman
Mayor Pro Tem Leslie Q. Jordan
Councilmember Jackie Morris-Lopez
Councilmember EJ Sabathia
Mayor Scott Freels
Absent:
Staff Present:
Elizabeth Soto, CMC, CPMC, Acting City Clerk
Don Reynolds, City Manager
2. DISCUSSION ITEMS
A. Budget Update for Workshop
City Manager Don Reynolds provided the proposed Budget for Fiscal Year 2024/24. The City Council approved four recommendations at its meeting on May 21, 2024, including receiving the Fiscal Year 2024/25 Draft Budget, setting dates for a budget workshop in June, scheduling the budget for adoption at the June 18, 2024, City Council meeting, and appointing two members of the City Council to a special "Public Safety Contract Negotiating Team" focused on the Fire Services contract.
The draft Budget includes details about the City Manager's proposed personnel changes and a summary of the City's priorities and issues. The Council considered 63 objectives and prioritized 25 of them to be addressed in the next Fiscal Year, which have been integrated into the draft Budget.
The City's fire contract cost is $188 per capita, while Hollister is paying $215 per capita. This difference in cost is considered a vulnerability, and the City has requested additional data from Hollister to further evaluate the contract. It is recommended that the City start a new "Disaster Preparedness" reserve account as recommended by Citygate.
Page | 2 City Council Meeting Minutes (June 3, 2024)
The City has resources to rely on in case of a sizable cost increase, including the current General Fund Reserve of over $1.5 million and the debt owed to the General Fund from the Water Enterprise Fund. The Water Enterprise fund balance is estimated to be over $2 million by June 30, 2025.
The City may consider a sales tax measure on the November 2025 ballot to increase revenues. It has the potential to add another 0.5% to its state sales tax limit, which could increase the General Fund by $250,000. The city has less than a year to consider this measure and staff will return to the Council with firm recommendations in mid-summer.
The sewer force main construction is still ongoing and is expected to be completed by 2025. As of now, $7 million of the $17 million construction budget has been spent, including design, CEQA mitigation, and ROW acquisition. The City received State approval to extend its deadline for compliance with the Settlement Agreement, and staff has met with the Vice President of Operations for Taylor Foods to discuss permit limits and changing their entry into the new force main.
Mayor Freels requested that the “Nonprofit Grant Program” priority be given to nonprofits that are inside the city limits.
The document mentioned discussions about implementing a vacancy tax or vacancy fees to address vacancies in the city. The idea of a vacancy tax was brought up during a meeting to explore potential revenue sources and policies related to vacant properties. The individual who specifically requested a vacancy tax was not explicitly mentioned in the document.
The City Council reviewed the Capital Improvement Program.
City Manager Reynolds announced that the General Fund Budget is balanced and stable. The Enterprise Funds are stronger this year than in the past. Looking for new Revenues sources without growth
Councilmember Morris-Lopez was concerned there was no extension discussion on the personnel part of the budget; all of the budget was not discussed and it will be coming back on June 18 for approval.
Councilmember Morris-Lopez expressed discomfort with approving the budget at that point due to concerns about rushing the decision without thorough discussion, specifically related to not feeling comfortable with the budget approval process when certain aspects like the new personnel positions were not extensively discussed.
A Councilmember Sabathia expressed reservations about adding another personnel position in the Recreation department.
Councilmember Morris-Lopez discussed the need to enforce code infractions more rigorously and hold individuals accountable for violations. Councilmember Morris-Lopez asked if there were any policies for the camera systems.
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Councilmember Freeman suggested updating Nexus fees every five years to ensure they are current.
Councilmember Sabathia asked about the status of vacant buildings and requested the item be reviewed by the City Attorney and brought forward for review.
No public comment was received.
3. ADJOURNMENT
Motion to adjourn the meeting by Councilmember Jordan, second by Councilmember Sabathia.
All in favor.
There being no other business, Mayor Freels adjourned the meeting at 7:26 p.m.
APPROVED:
_____________________
Scott Freels, Mayor
ATTEST:
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Elizabeth Soto, Acting City Clerk