Sand City City Council
June 17, 2025

TABLE OF CONTENTS
INTRODUCTION............................................................................................................... 2 City Manager’s Message...................................................................................................................2 Revenues.................................................................................................................................................8 Expenditures .......................................................................................................................................11 OPERATING BUDGET .................................................................................................. 12 City Council..........................................................................................................................................12 City Attorney........................................................................................................................................14 Administration .....................................................................................................................................16 Finance..................................................................................................................................................21 Non-Departmental.............................................................................................................................24 Community Development............................................................................................................... 27 Public Works .......................................................................................................................................33 Engineering.......................................................................................................................................38 Public Safety .......................................................................................................................................40 Police...................................................................................................................................................40 Fire .......................................................................................................................................................44 Community Outreach.......................................................................................................................45 Government Buildings .....................................................................................................................47 Parks ......................................................................................................................................................48 CAPITAL IMPROVEMENT PLAN................................................................................. 49 GRANTS .......................................................................................................................... 51 APPROPRIATIONS LIMIT............................................................................................. 54 Prepared by Jennifer Pope, Finance Manager & Audrey Cray, HR/Risk Manager 282
City of Sand City
2025-26 Budget

City of Sand City
2025-26 Budget

CITY OF SAND CITY
Introduction
City Manager’s Message
Honorable Mayor, City Council, and Residents of Sand City, The Fiscal Year 2025-2026 (“FY 25-26”) proposed budget is presented for your consideration and recommended adoption on June 17, 2025. The proposed budget communicates what we think is the most fiscally responsible approach to funding operations and capital investments in order to best serve the needs of the Sand City community. The budget is presented to you this year in the budget-book format we developed last year. The format is intended to make the budget more accessible and transparent.

We will start the fiscal year with another relatively strong projected financial outlook, as well as a highly competent and efficient team which is eager to improve the Sand City community.

In fiscal year 24-25, much of our capacity was spent on major City projects such as developing plans and locating funding for the Multi-use Bike Trail project and the Coastal Trail project; the affordable housing vision at the Art Park; the stormwater improvement project; initiating a façade improvement program; and shepherding the construction of the first hotel in Sand City projected to open in FY 25-26. We have also focused on maintaining and improving the day-to-day municipal services that benefit the community such as street improvements, code enforcement and the continuation of our City-sponsored arts programs such as the mural festival and the West End festival. Further, in the prior fiscal year, we succeeded in improving services to our residents by implementing several technological efficiencies that have moved the City away from antiquated paper-based systems in accounting, as well as other departmental functions by implementing new software and systems in accounting, business licenses and payroll.

In our drafting of the Fiscal Year 25-26 budget, we have taken into account various factors at the global, national, state and local levels that have the potential to impact our City’s 283

financial health. We continue to face economic uncertainty and volatility in financial markets.

National and international events can affect budgeted revenue by impacting businesses and hotel visitors and consequently, the tax revenue generated in the City. With these unknown variables in mind, we have produced a budget that is conservative from a revenue perspective.

In summary, the FY 25-26 budget projects a total of $13.7 million in revenue which includes $11.2 million in operating revenue and $2.5 million in special projects and grants revenue.

The total expenditures projected in the FY 25-26 budget also total $13.7 million, $9.8 million in operating expenditures and $3.9 million in capital improvements and special projects.

The budget projects a surplus in operating revenue of $1,352,835 that will be used along with $376,145 in general fund reserves towards the FY 25-26 Capital Improvement Projects (CIP).

CITY BUDGET SUMMARY
Description FY 23/24
Actuals
FY 24-25
Amended
Budget
FY 25-26
Proposed
Budget
Prior Year
Difference
Operating Revenue $11,286,689 $10,945,625 $11,198,483 $252,858 Operating Expenditures $7,931,884 $9,211,514 $9,850,378 $638,864 Surplus/Deficit $3,354,805 $1,734,111 $1,348,105 -$386,006 Non-Operating Revenue
Grants $378,264 $3,454,185 $2,039,150 -$1,415,035
General Fund Reserves for CIP $0 $0 $380,875 $380,875
Special Projects $474,202 $1,447,257 $130,020 -$1,317,237 Total Non-Operating Revenue $852,467 $4,901,443 $2,550,045 -$2,351,398 Non-Operating Expenditures
Capital Projects $94,982 $3,230,967 $2,926,150 -$304,817 Capital Outlay $469,135 $221,291 $422,000 $200,709
Special Projects $668,321 $1,542,966 $550,000 -$992,966 Total Non-Operating Expenditures $1,232,438 $4,995,224 $3,898,150 -$1,097,074 Surplus/Deficit -$379,971 -$93,782 -$1,348,105 -$1,254,323 Total Op and Non-Op Surplus/Deficit $2,974,833 $1,640,329 $0 -$1,640,329 Revenues:

The proposed operating revenue for FY 25-26 is $11.2 million, an increase of approximately $252,858 from Fiscal Year 24-25.

Staff’s projections include an estimated increase in operating revenue of approximately $252,858 when compared to Fiscal Year 24-25. Some of the larger changes include an increase of $271,664 in Sales and Transaction Use Tax, $250,000 in Transient Occupancy Tax for the new hotel that is expected to open in January 2026, and a $205,000 disbursement from the City CalPERS CERBT account.
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City of Sand City
2025-26 Budget

The budget also reflects a $65,000 projected decrease in interest revenue and a $50,000 decrease in business license tax, a $60,000 decrease in miscellaneous revenue when compared to the prior fiscal year which is in part due to the fact that the prior fiscal year’s budget reflected a one-time payment for public improvement costs on California Avenue which is not expected in FY 25-26. Further, in FY 24-25 the City negotiated a decrease in the Measure X Maintenance of Effort (MOE) which resulted in the City receiving three years of Measure X funding. In FY 25-26 the Measure X revenue will instead be the amount allotted for one year resulting in a 56% decrease in Public Works revenue.

On the non-operating revenue front, Staff’s projections include an estimated $2.4 million decrease in Special Projects and Grant revenue when compared to the previous fiscal year.

A decrease of approximately $1.4 million in grant funding for FY 25-26 is due to the City’s FY 24-25 budget reflecting grant funding for the multiple projects the City initiated such as: REAP ($53,000), PLHA ($216,500), Coastal Conservancy for the Coastal Trail ($473,000), AMBAG for the multi-use trail ($305,000), and Cannabis Retail ($115,000). The budget also reflects a decrease in special project revenue due to one-time special project funding that was received in FY 24-25, $586,781 for the purchase of the Ortiz property and $439,956 from an environmental enhancement fee for the MST SURF project. The budget also includes a transfer of $376,145 from the General Fund Reserve for FY 25-26 capital improvement projects.

Revenue Budget Summary
Description FY 23/24
Actuals
FY 24-25
Amended
Budget
FY 25-26
Proposed
Budget
Prior Year
Increase
(Decrease)
Percent
Change

OPERATING REVENUES
Property Taxes $152,735 $137,985 $138,767 $782 1%
Sales/Use Taxes $3,702,059 $3,545,000 $3,679,759 $134,759 4% Transaction Tax $4,708,705 $4,540,000 $4,676,905 $136,905 3% TOT Tax $119,356 $120,000 $370,000 $250,000 208%
Franchise/Users Tax $400,183 $323,800 $331,800 $8,000 2% Business License $844,415 $750,500 $700,200 -$50,300 -7% Planning Revenues $4,544 $14,000 $15,000 $1,000 7%
Building Revenues $36,619 $27,150 $27,150 $0 0%
Police Revenues $18,915 $19,800 $19,800 $0 0%
Public Works Revenues $76,122 $192,685 $85,182 -$107,503 -56% Interest $519,329 $521,100 $456,000 -$65,100 -12%
Rental $17,237 $43,000 $43,000 $0 0%
ROPS Residual $256,041 $221,055 $225,000 $3,945 2%
SA Admin Fees Reimbursement $155,728 $0 $0 $0 0%
Misc. Revenues $7,688 $289,650 $230,020 -$59,630 -21%
Recurring Grants $213,167 $192,900 $192,900 $0 0%
Cal-Am $53,848 $7,000 $7,000 $0 0%
TOTAL OPERATING REVENUE $11,286,689 $10,945,625 $11,198,483 $252,858 2% City Revenue Budget Summary
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Expenditures:

The proposed operating expenditure budget for FY 25-26 is $9.8 million, an estimated increase of $634,134 from the previous year. The anticipated increase in operating expenditure for FY 25-26 is in part due to an increase in Police Department and Administrative Services salaries and benefits as well as increases in workers comp and liability insurance. It also reflects an increase in Non-departmental expenses due to an increase in CalPERS unfunded liability. Staff is also projecting a decrease in planning expenditures as the City is in the process of hiring a new Planning Manager which is expected to reduce costs for contracted services, a decrease of $47,246 as a result of the Façade Improvement Program which concluded in FY 24-25 as well as a projected $35,103 increase in building fees due to a significant increase in capital improvement and special projects moving forward.

The budget proposes a $1.1 million decrease in non-operating expenditures due to the FY 24-25 purchase of the Ortiz property, the projected completion of the website project early in the new fiscal year, and the completion of the cannabis retail project in early FY 25-26.

Expenditure Budget Summary
Description FY 23/24
Actuals
FY 24-25
Amended
Budget
FY 25-26
Proposed
Budget
Prior Year
Increase
(Decrease)
Percent
Change

OPERATING EXPENSES
City Council $101,175 $151,562 $162,113 $10,550 7%
Administration $760,804 $833,334 $914,591 $81,257 10%
Finance $581,116 $530,054 $538,685 $8,631 2%
Attorney $277,610 $375,000 $386,250 $11,250 3%
Planning $485,764 $832,090 $786,636 -$45,453 -5%
Building $40,690 $119,790 $154,893 $35,103 29%
Police $3,879,905 $3,659,779 $4,019,039 $359,259 10%
Fire $346,268 $358,387 $364,151 $5,764 2%
Public Works $966,798 $1,078,428 $1,133,550 $55,122 5%
Parks $19,528 $70,330 $66,384 -$3,947 -6%
Government Buildings $66,559 $77,615 $77,765 $150 0%
Community Outreach/Econ Dev $262,500 $238,419 $243,172 $4,753 2% Non-Departmental $143,167 $886,725 $1,003,151 $116,425 13% TOTAL OPERATING EXPENSES $7,931,884 $9,211,514 $9,850,378 $638,864 7% City Expenditure Budget Summary
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City of Sand City
2025-26 Budget

Capital Improvement Plan
On June 3, 2025, City Council approved a five-year Capital Improvement Plan that included a budget for FY 25-26 CIP projects. These projects are included in the non-operating expenditures. The surplus from the operating budget is proposed to be used for the capital improvement projects that were approved in the five-year CIP plan for FY 25-26. General Fund Reserve will be used for the remainder of the CIP projects.

Finally, I express my gratitude to the City Council for its vision and continued leadership.

With your guidance and support, the City will have another great year operating within a fiscally responsible spending plan that reflects thoughtful goals, and funds municipal services that positively benefit the community. And thank you team Sand City for your hard work this past year and your continued eagerness to make Sand City the magnificent little City that it is.

Respectfully submitted,
Vibeke Norgaard
City Manager
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Revenues
The Fiscal Year 2025-2026 Proposed Budget includes $11,198,483 in recurring revenue and $13,748,528 in total revenue. As illustrated in the chart below, the major source of revenue is tax revenue at 72%.

Operating Revenue
Tax Revenue, at a proposed amount of $9,897,431 for Fiscal Year 2025-2026 consists of property taxes, franchise/utility users taxes, sales and use taxes, and transaction taxes, among others.
• Franchise Utility Users Tax is a five percent (5%) fee on those who provide garbage, electric, gas, and cable services. In Sand City, these are Greenwaste, Pacific Gas and Electric Company, CalAm, and Comcast.

Property Taxes,
1%
Sales/Use Taxes,
27%
Transaction Tax,
34%
TOT Tax, 3%
Franchise/Users
Tax, 2%
Business License,
5%
Planning/Bldg
Revenue, .3%
Police Revenues,
.1%
Public Works
Revenue, 1%
Interest, 3%
Lease/Rental, .3%
ROPS Residual,
2%
Misc Rev, 5%
Special Projects, 3%
Grants, 15%
Reserves, 3%
Recurring Grants,
1%
25/26 Proposed Amended Budget for Revenues
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City of Sand City
2025-26 Budget

• Conservative forecast of $370,000 in Transient Occupancy Tax (TOT) to include the dual brand Marriott Hotel expected to open in Quarter 3 of FY 2025-2026.

Business License Revenue accumulates from the fee for business license applications and renewals for all businesses located in Sand City and all businesses providing supplies or services in Sand City. In Fiscal Year 2025-2026, Business License revenue is collected by HDL and sent to the City of Sand City. This ensures accurate tax reporting and oversight.

Interest Revenue stems from various bank accounts, Certificates of Deposit, and investment accounts.

Other Miscellaneous Revenue encompasses all items that do not fall into the other categories such as impact, mitigation fees, copies of documents, and West End Celebration revenue for donations and exhibitor fees.

Departmental Revenue is revenue that is created from the departments of Planning, Public Safety, and Public Works. Planning revenue ($10,075) comes from the fees associated with coastal development permits, conditional use permits, temporary conditional use permits, site permits, design review, plan check, and parking permits.

Building revenue ($27,150) comes from the fees of building permits and Short-Term Rental inspections. Public Safety ($19,800) revenue arises from City fines, parking violation fines, motor vehicle fines, State allocated funding, dog licensing, asset forfeiture, unclaimed property, and police reports. Public Works ($195,182) revenue derives from engineering fees; a combination of taxes, State allocated funding, and California code fines.

Recurring Grants includes the Department of Justice Community Oriented Policing Services (COPS) grant, the Bureau of Justice Assistance Bulletproof Vest Partnership (BVP) grant, the California Department of Resources Recycling and Recovery (CalRecycle) grant, the Monterey Bay Area Insurance Authority (MBASIA) Safety and Fitness grant, and County Service Agreement (CSA) 74 funds acquired through the Monterey County Emergency Medical Services (EMC) Agency.

The California American Water (CalAm) Lease was entered into in 2009 as an amended and restated lease agreement whereby CalAm leases and operates the desalination facility plant. CalAm will hold the lease property for a term of thirty (30) years. The minimum future rental under the lease as of June 30, 2025, is $7,000 per year through Fiscal Year 2038-2039.
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Other Revenue
Special Projects Revenue includes developer reimbursement costs that fall under a Reimbursement Agreement with the City of Sand City.

Grants Revenue includes non-recurring grant revenue from the California Coastal Conservancy, Monterey Bay Air Resources District (MBARD), Association of Monterey Area Governments (AMBAG), and Prop 1 SW Grants. See Grants for more information related to these revenue sources.

Account Description FY 23/24
Actuals
FY 24-25
Amended Budget
FY 25-26
Proposed Budget

OPERATING REVENUES
Property Taxes $152,735 $137,985 $138,767
Sales/Use Taxes $3,702,059 $3,545,000 $3,679,759
Transaction Tax $4,708,705 $4,540,000 $4,676,905
TOT Tax $119,356 $120,000 $370,000
Franchise/Users Tax $400,183 $323,800 $331,800
Business License $844,415 $750,500 $700,200
Planning Revenues $4,544 $14,000 $15,000
Building Revenues $36,619 $27,150 $27,150
Police Revenues $18,915 $19,800 $19,800
Public Works Revenues $76,122 $192,685 $85,182
Interest $519,329 $521,100 $456,000
Rental $17,237 $43,000 $43,000
ROPS Residual $256,041 $221,055 $225,000
SA Admin Fees Reimbursement $155,728 $0 $0
Misc. Revenues $7,688 $289,650 $230,020
Recurring Grants $213,167 $192,900 $192,900
Cal-Am $53,848 $7,000 $7,000
SUBTOTAL OPERATING REVENUE $11,286,689 $10,945,625 $11,198,483

OTHER REVENUE SOURCES
Special Project Revenues $378,264 $3,454,185 $2,039,150 Housing Account $0 $586,781 $0
Environmental Enhancement $0 $439,956 $0
General Fund Reserve (CIP) $0 $0 $380,875
Grants $474,202 $420,520 $130,020
SUBTOTAL OTHER REVENUE $852,467 $4,901,443 $2,550,045
TOTAL REVENUE $12,139,156 $15,847,068 $13,748,528
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City of Sand City
2025-26 Budget

Expenditures
The Fiscal Year Proposed Budget includes $9,850,378 in operating expenditures and total expenditures of $13,748,528.

Operating Expenditures
Operating Expenditures for each department include salaries and benefits, supplies, Small equipment purchases, telephones, contract services, memberships, and meeting/training.

Non-Department Expenditures is comprised of expenses utilized citywide. This covers expenses for memberships, municipal code updates, committees, health benefit surcharges, LAFCO, Unfunded Accrued Liability (CalPERS), donations and contributions, advertising, office supplies, telephones, physical exams and vaccinations, and utilities.

Community Outreach describes expenses for the West End Celebration event, contract services for the community garden, electricity on the recreation trail, miscellaneous City events, maintenance for the recreation trail and the community garden, and City Council outreach.

City Council, 1% Administration, 7%
Finance, 4%
Attorney, 3%
Planning, 6%
Building, 1%
Police , 29%
Fire, 3% Public Works, 8%
Parks, .50%
Gov Bldgs, 1%
Econ Dev, 2%
Special Projects,
4%
Capital Outlay,
24%
Non-Departmental,
7%
25/26 Proposed Expenditures
291

Other Expenditures
Other Expenditures are funded though Grant Revenues for Fiscal Year 2025-2026.

Capital Outlay expenditures include ongoing Capital Improvement Projects (CIP) and Capital Outlay purchases. Fiscal Year 2025-2026 ongoing CIP includes Stormwater Improvement Projects for Contra Costa and Catalina, Pavement Management Program, Parking Construction, Coastal Trail Development, Bike Trail, and an affordable housing project. Capital Outlay expenditures include replacement of utility trucks for the Public Works Department, replacement of ATV for beach rescue, and upgraded tasers for the Police Department.

Special Project expenditures include projects relating to updating the Municipal Code with changes from 6th Cycle Housing Element, Habitat Expense for North of Playa, and the General Plan update.

Account Description FY 23/24
Actuals
FY 24/25
Amended
Budget
FY 25/26
Proposed
Budget

OPERATING EXPENSES
City Council $101,175 $151,562 $162,113
Administration $760,804 $833,334 $914,591
Finance $581,116 $530,054 $538,685
Attorney $277,610 $375,000 $386,250
Planning $485,764 $832,090 $786,636
Building $40,690 $119,790 $154,893
Police $3,879,905 $3,659,779 $4,019,039
Fire $346,268 $358,387 $364,151
Public Works/Engineering $966,798 $1,078,428 $1,133,550 Parks $19,528 $70,330 $66,384
Government Buildings $66,559 $77,615 $77,765
Community Outreach/Economic Developm $262,500 $238,419 $243,172 Non-Departmental $143,167 $886,725 $1,003,151
SUBTOTAL FOR OPERATING EXPENSES $7,931,884 $9,211,514 $ 9,850,378

OTHER EXPENSES
Capital Outlay $564,117 $3,452,258 $3,348,150
Housing Account $0 $586,781 $0
Special Projects $668,321 $956,185 $550,000
SUBTOTAL OTHER EXPENSES $1,232,437.65 $4,995,224.17 $ 3,898,150 TOTAL EXPENSES $9,164,322 $14,206,738 $ 13,748,528
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City of Sand City
2025-26 Budget

OPERATING BUDGET
City Council

Description
The City Council is responsible to the citizens of Sand City for the proper and orderly government of the City. As the legislative body, the Council enacts the laws that govern the activities of the City.

The Council is composed of five members elected by the registered voters of Sand City.

Councilmember terms last four years and the Mayoral term lasts two. The Council appoints the City Manager, City Attorney, and members of advisory committees. The Council chooses one of its members as Vice Mayor, who can preside at a Council meeting in the absence of the Mayor.

The Council receives recommendations on proposed legislation from the City Manager and City Attorney. In each legislative enactment, comments from citizens and organizations are heard and considered.

The Council is also responsible for adopting the City’s annual budget and authorizes the expenditure of funds for items in the budget. Plans and specifications for public works are approved by the Council.

Budget Summary
The main notable expenditures include:
• An increase to the Salaries line items of $3,148 to account for a full year of increased Elected Official stipends.
• A $3,740 increase to the Deferred Compensation line item due to additional Councilmembers electing the Deferred Compensation benefit. • An increase of $5,000 to Trainings/Meetings for FY 2025-2026. 293

Council Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Number Account Description Actual Expenses Amended Budget Proposed Budget 5000 Salaries $0.00 $50,000.00 $53,148
5004 Auto Allowance $22,500.00 $2,400.00 $2,472
5006 Fitness Pay $7,170.00 $7,800.00 $6,180
5102 Dental $4,317.68 $4,689.00 $3,646
5103 Vision $744.96 $775.00 $569
5104 Life Ins $144.00 $0.00 $0
5105 Health Benefits $0.00 $0.00 $0
5106 Pers EE Portion Paid by Emp $0.00 $4,315.70 $5,262 5108 CalPERS Employer $3,218.98 $4,882.00 $6,186
5109 CalPERs Annual Survivor $47.52 $0.00 $0
5110 Deferred Compensation $13,500.00 $14,800.00 $18,540 5111 FICA/Medicare $1,109.80 $1,911.00 $1,957
5112 CA SUI/EDD $666.12 $0.00 $0
5200 CalPERS Unfunded Accrued $16,157.26 $0.00 $0
5406 Dues/Subscrptions/Publicatio $2,400.00 $1,621.53 $2,060 5410 Trainings/Meetings $15,416.69 $20,000.00 $25,000
5411 Elections $0.00 $3,450.00 $0
5419 Liability Insurance $1,183.04 $3,446.00 $5,241
5423 Workers Compensation Insura $4,078.83 $7,627.00 $10,474 5600 Office Phones $3,511.17 $2,755.00 $2,838
5703 Council Meeting $121.10 $1,000.00 $1,030
5705 Equipment Purchases $4,887.50 $18,090.00 $15,450
5707 Computer Equipment $0.00 $2,000.00 $2,060
DEPARTMENT TOTAL $101,173 $151,562 $162,113
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City of Sand City
2025-26 Budget

City Attorney
Description
The City Attorney of Sand City represents the City in all municipal affairs. The role of the City Attorney is to provide legal services to the City Council, committees, and staff. This includes offering advice that is reliable, timely, and useful. The City Attorney also defends the City in litigation and administrative actions; drafts and/or reviews ordinances, resolutions, contracts, permits and other legal documents and agenda items; prepares formal and informal opinions; and represents the City before various State and Federal agencies when needed. The City Attorney also prosecutes criminal infractions and misdemeanors involving violations of the Sand City Municipal Code and advises on meeting procedures, including the Brown Act.
2024-25 Accomplishments
• Employment legal advice
• Advice and drafting of documents related to the construction of South of Tioga Development project, including the hotel
• Advice on Code Enforcement activities
• Advice and assistance on stormwater improvement project • Drafting of resolutions and ordinances
• Litigation and violation notices from state agencies, including Successor Agency litigation and assisting in management of flood claims. • Negotiations and drafting agreements for Art Park and housing project, bike trail project and other major City projects.
• Assist in implementing City cannabis program.
2025-2026 Initiatives
• Continuing to provide litigation representation of the City to protect City interests and resources.
• Employment law update and compliance issues.
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• Assisting staff on Major CIP projects including multi-use trail and coastal trail • Supporting collaborative options to expand bluff protections and restoration. • Revise camping ordinance to comply with legal decisions. • Continue to Assist staff in implementation of new code enforcement ordinance.

City Attorney Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5107 Health Retirees $5,209 $0 $0
5300 Contract Services $272,401 $375,000 $386,250
DEPARTMENT TOTAL $277,610 $375,000 $386,250
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City of Sand City
2025-26 Budget

Administration
Description
The Administration Department consists of the City Manager, City Clerk, and half of the cost of the HR/Risk Manager, and Administrative Assistant positions.

The City Manager is responsible for the efficient administration of the City government.

The City Manager provides strategic leadership and guidance to City operations and services through several areas:

The City Council sets policy direction for the City and confers that direction through legislative actions. To support the Council’s work, the City Manager prepares staff reports in collaboration with City departments, including analysis and recommended City Council action, and implements City Council actions. Working with other City Managers and other agencies, the City Manager also tackles cross-jurisdictional issues that affect the region.

Each year, the City takes on special projects that, due to their scale and scope, require extensive interdepartmental coordination, community outreach, and engagement with neighboring communities and public agencies. The City Manager manages these special projects to ensure efficient and effective coordination, cost-savings, implementation, and achievement of the City’s goals. Some projects are planned and identified as City Council priorities in one year or another and others arise as the City responds to unfolding events and community concerns.

The City Manager provides strategic leadership and guidance to the City’s Department Heads to ensure the provision of high-quality, cost-effective and focused services to the community. The City Manager ensures City operations demonstrate transparency and fiduciary responsibility to the public. In this capacity, the City Manager also provides timely, accurate, and results-oriented operational reports. Through the development of the budget, the City Manager ensures resources are allocated to the City Council’s policies and priorities.

The City Manager also supervises and maintains a highly qualified, engaged, and effective workforce to successfully achieve the City’s goals and objectives. Towards that 297

end, the City Manager cultivates a strong service culture and provides ongoing, informative communication with City employees regarding key objectives, challenges, and accomplishments.

The City Manager maintains collaborative relationships with businesses and residents to facilitate desired economic activity. In addition to addressing issues with individual businesses, local and regional associations serve as leaders and partners in this endeavor.

The City Manager also has the ultimate responsibility for the preparation of the City’s budget and supervises the day-to-day operations of all City departments and supervises all department heads. The City Manager also develops fiscal plans, communicates with the press, and maintains a unique understanding of how all City operations, goals and initiatives function together. The City Manager serves as the City Treasurer/ Finance Officer and Executive Director of the former Redevelopment Agency. The Manager represents the City with public agencies, private organizations, boards, commissions, City residents, businesses, and property owners.
2024-25 Accomplishments
Most of the accomplishments listed here are the result of a team effort by the entire Sand City team, or individual departments, under the overall guidance and leadership provided by the City Manager:
• Significant progress was made on three major CIP infrastructure projects:
o the multi-use bike trail project to 30% plans;
o the coastal trail close to 30%;
o the Stormwater Improvement Project plans are completed (100% plans) and bid documents are being prepared.
• The Art Park affordable housing project also moved ahead with several important milestones: the City purchased the property adjacent to the City’s Art park and worked with a consultant to produce initial concept renderings for the site. • City Hall offices were remodeled to maximize efficiency for newly hired staff. • City Hall continued to deliver services in an efficient and effective manner. • Pursued and obtained several grants for major City projects. • Provided guidance, direction, and oversight for the upgrade to the City’s website with a large economic development component.
• Improved the efficiency of the internal city hall systems by implementing new accounting and payroll software.
• Implemented our new donations policy to govern use of public funds for donations to community serving nonprofits.
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City of Sand City
2025-26 Budget

• Inspected, permitted, supported and navigated the construction of a major private development project resulting in the construction of the City’s first hotel. • Began implementing the programs established in the City’s newly certified 6th Cycle Housing Element, including taking a zoning code amendment to Council. • Initiated a widespread code enforcement operation to address municipal code violations.
• Conducted CIP community workshops and brought a five-year CIP to Council for its approval.
• Issued an RFP and navigated a transition to a new West End Festival coordinator. • Developed and implemented a façade improvement program for businesses and residents.
• Provided economic development leadership by working closely with local restaurateurs and commercial lessors to assist them in locating businesses attractive to Sand City.
• Made progress on the city-wide incidental take permit (ITP). 2025-26 Priorities:
• Hire and train a new Planning Manager.
• Explore and apply for grant opportunities for Council’s CIP projects. • Implement programs in Housing Element and seek pro-housing designation. • Issue RFP for general plan update and begin process.
• Issue RFP for multi-use/bike trail project and bring plans to 100%, locate and apply for implementation funds for construction.
• Obtain agreement with several agencies and other third parties to improve coastal access and aesthetics.
• Implement the City’s parking plan.
• Apply for city-wide ITP to enable east dunes development. • Complete website redesign.
• Bring Coastal Trail to 100%, locate implementation funds for construction. • Continue economic development work to attract business to Sand City.

The City Clerk’s office organizes and oversees clerk related activities associated with the City Council and Successor Agency of the former Redevelopment Agency and receives and files all petitions, appeals, and lawsuits. The City Clerk’s department serves as the City representative point of contact, the custodian of the City Seal, and ensures that internal requests and external public records requests for information of City records are appropriately handled. The City Clerk serves as the Elections Official and oversees the 299

receipt of Fair Political Practices regulations, statements of economic interest, campaign disclosure statements, and other legal documents.

The HR/Risk Manager oversees employee relations, secures regulatory compliance in accordance with FLSA and the DOL as well as safety compliance in accordance with CalOSHA. The HR/Risk Manager also administers employee-related services such as pay, benefits and applicable training to City Employees. 2024-25 Accomplishments of City Clerk & HR/Risk Manager:
• Facilitated the 2024 Municipal Election for Mayor and two (2) Councilmembers • Facilitated the 2024 Conflict of Interest Code Biennial Update. • Compiled thirty (30) agenda packets for a total of fifty-seven (57) resolutions and four (4) ordinances.
• Performed annual Fair Political Practices Commission Form 700 filings for thirtytwo (32) Form 700 filers (including City staff, elected officials, and City Committee Members).
• Managed the City Hall re-design of the City Clerk’s office and Finance Manager’s Office.
• Continued destruction of obsolete City records per the record retention policy. • Organized the storage unit and continued with the disposal of non-essential records.
• Participated in the redesign of the City website.
• Transitioned payroll to in-house through new ERP Pro software. 2025-26 Initiatives of City Clerk & HR/Risk Manager:
• Update the City’s records retention schedule.
• Organize the storage unit and proceed with disposing of non-essential records. • Provide cross-training to Records Administrative Analyst for workforce sustainability and scheduling flexibility.
• Update the City’s policies and procedures including the Personnel Manual, City’s Illness & Injury Prevention Plan, Conflict of Interest Code, and Covid Prevention Policy.
• Implement a Schedule of Benefits for Non-POA Employees 300
City of Sand City
2025-26 Budget

Budget Summary
Main notable expenditures include:
• An increase to both Workers Compensation and Liability line items due to increased claims and payroll.
• Increase in Salaries and associated benefits to account for City Council approved increases to City Manager salary as well as the City Council approved 4% COLA effective June 1, 2025, and 3% COLA effective July 1, 2025 Administration Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5000 Salaries $371,191 $455,076 $503,229
5002 TEMP STAFFING $0 $0 $0
5004 Auto Allowance $3,600 $3,600 $3,708
5006 Fitness Pay $1,180 $3,000 $4,017
5009 Paid Time Off $11,860 $29,067 $15,450
5012 Over Time Pay $0 $0 $0
5018 Service Award $0 $0 $0
5100 L.T.D. $4,078 $4,191 $3,791
5102 Dental $6,475 $6,924 $7,519
5103 Vision $589 $1,043 $1,074
5104 Life Ins. $306 $590 $618
5105 Health Benefits $57,785 $68,522 $71,699
5106 PERS Retiree EE $32,767 $0 $0
5107 HEALTH-RETIREES $41,762 $0 $0
5108 CalPERS Employer $48 $43,139 $49,261
5109 CalPERs Annual Survivor $9,500 $0 $0
5110 Deferred Compensation $5,166 $10,800 $11,124
5111 FICA/Medicare $0 $6,733 $7,628
5112 CA SUI/EDD $340 $468 $0
5200 CalPERS Unfunded Accrued $581 $0 $0
5300 Contract Services $51,000 $51,000 $62,830
5301 Maintenance/Service Contra $13,369 $13,390 $14,420 5305 ADP/SHREDDING $5,761 $2,575 $2,652
5307 Technical Spprt $325 $0 $0
5406 Dues/Subscrptions/Publicat $8,774 $5,500 $5,665
5410 Trainings/Meetings $24,227 $17,510 $20,000
5412 Employment Screening $0 $0 $0
5419 Liability Insurance $23,352 $27,892 $39,793
5423 Workers Compensation Insu $80,512 $59,169 $79,537
5600 Office Phones $2,988 $1,545 $1,545
5705 Equipment Purchases $3,268 $1,000 $1,030
5707 Computer Equipment $0 $20,600 $8,000
DEPARTMENT TOTAL $760,804 $833,334 $914,591
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Finance
Description
The goals of the Finance Department are to provide the necessary financial information to allow the City Council, City Manager and City Staff to make informed decisions for the City, to ensure the safety and security of the City’s assets, to develop and follow sound financial strategies for decisions, and to actively support the business community.

The Finance Department is responsible for the overall management and supervision of the accounting department. This department is also responsible for the purchasing functions which include the processing of all City purchase orders and development and maintenance of purchasing policies and procedures. In addition, the Budget function falls under the Finance Department to include coordinating the budget process, budget control and compliance, and developing budget reports and procedures. The Finance Manager is often requested to produce statistical information, analyze past operations, and estimate the cost of future endeavors.

The Finance Department includes all functions related to accounting including expenditures, revenues, and other transactions in accordance with Generally Accepted Accounting Principles in a timely and accurate manner. Staff also coordinate and ensure that all payroll and payroll taxes are paid and accurately follow up with all employee benefit plans.

In addition, the Finance Department also serves as the Revenue Department. The Accounting Technician is responsible for the receipt and accounting of all monies received by the City. This department oversees bank reconciliation and the investment of excess funds in an equitable and safe way.

The department works with HDL on Business License Administration. HDL maintains individual business information, audits payments, and annually coordinates the license renewal process.
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The Finance Manager serves as the audit liaison for all financial, compliance, and grant related audits.
2024-25 Accomplishments
• Implementation of ERP Pro financial software including General Ledger, Cashiering, Accounts Payable, Project Accounting, Payroll and Purchasing. • Implementation of electronic time sheets and an Employee Access Portal • Set up Positive Pay with the Bank to prevent fraud
• Initiation of a business license audit
• Increased investment income
• Established a new and more comprehensive Chart of Accounts • Updated the Employee Travel Policy
• Updated the Council Reimbursement Policy
• Established a Council Donation Policy
• Received an unmodified independent auditor’s report
• Worked with consultant to prepare an actuarial study and report • Production and distribution of FY 25/26 Budget Book
2025-26 Initiatives
• Implement Purchasing Policy and Procedures Manual
• Update Investment policy
• Create an internal Grant Management Procedure
Budget Summary
Main notable expenditures include:
• A reduction to Maintenance Contracts due to the completion of the ERP Pro implementation in FY 24/25.
• Slight increase to Workers Compensation and Liability line items due to increase in claims cost and payroll.
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Finance Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5000 Salaries $195,105 $206,073 $228,309
5006 Fitness Pay $3,310 $3,900 $4,635
5012 Overtime Pay $0 $0 $0
5100 L.T.D. $1,052 $2,446 $2,519
5102 Dental $2,382 $4,722 $4,803
5103 Vision $338 $742 $713
5104 Life Ins. $461 $472 $494
5105 Health Benefits $39,566 $39,124 $39,124
5107 HEALTH-RETIREES $0 $0 $0
5108 CalPERS Employer $21,637 $24,740 $26,832
5109 CalPERs Annual Survivor $48 $0 $0
5110 Deferred Compensation $5,200 $7,200 $7,416
5111 FICA/Medicare $4,306 $4,841 $3,027
5112 CA SUI/EDD $313 $0 $0.00
5200 CalPERS Unfunded Accrued Liability $290 $0 $0.00
5300 Contract Services $128,840 $23,000 $23,500
5304 Audit $61,000 $57,000 $59,500
5307 Technical Support $6,666 $500 $515
5308 HDL/BL/PROP/SAL $32,914 $36,050 $37,132
5313 Computer Maintenance Contracts $25,278 $65,000 $26,780 5406 Dues/Subscrptions/Publications $42 $515 $1,000
5410 Trainings/Meetings $5,945 $8,240 $15,000
5419 Liability Insurance $7,096 $13,109 $17,368
5423 Workers Compensation Insurance $24,464 $27,231 $34,715 5705 Equipment Purchases $7,268 $2,575 $2,652
5707 Computer Equipment $0 $2,575 $2,652
N/A Property Tax Fees $7,595 $0 $0
DEPARTMENT TOTAL $581,116 $530,054 $538,685
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2025-26 Budget

Non-Departmental
Description
Non-Departmental costs are expenses spread across the entire organization for items that benefit all Departments. Non-Departmental items include public agency memberships with the Association of Monterey Bay Governments, the League of California Cities, the Local Agency Formation Commission (LAFCO), the Monterey County Mayors Association, the Monterey Regional Waste Management District, Monterey One Water, the Transportation Agency of Monterey County, the Monterey Peninsula Regional Water Authority, Monterey Salinas Transit, and the Seaside Groundwater Basin Watermaster; voluntary memberships with Community Human Services, the Monterey County Convention and Visitors Bureau, the Monterey County Business Council, and the Monterey Peninsula Chamber of Commerce; record management and agenda management software; asset management software; Municipal Code publishing; Art Committee funding; IT support; donations and contributions advertising in the Monterey County Weekly; equipment maintenance; office supplies; CalPERS Unfunded Accrued Liability and City Hall utilities.

Information Technology (IT) provides innovative and secure technological solutions that support City departments in delivering quality services to the community. The purpose of IT is to provide a broad range of high-quality technology solutions to employees, departments, Councilmembers, and the community and to continuously support and improve essential infrastructure for enabling daily operations of the City. This service is contracted with Monterey Bay Technologies.
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Non-Departmental Revenues
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Revenue Amended Budget Proposed Budget 4005 Curr Prop Taxes $91,713 $76,450 $76,450
4006 RPTTF Residual $256,041 $221,055 $225,000
4008 SA Admin Fees Reimbursement $155,728 $0 $0
4010 Prior Year Prop $1,482 $1,000 $1,000
4012 Vehicle License Fee $41,039 $43,535 $44,667
4013 MBASIA Claims $1,764 $3,000 $0
4015 SB 813 $17,006 $14,000 $14,000
4020 Prop Tax Transf $1,166 $2,500 $2,500
4025 Users Tax $238,218 $180,000 $180,000
4030 Sales/Use Tax $3,702,059 $3,545,000 $3,679,759
4032 Transaction tax $4,708,705 $4,540,000 $4,676,905
4033 State CASP Fee $1,552 $0 $0
4034 TOT Tax $119,356 $120,000 $370,000
4035 Cable Franchise $7,817 $5,000 $5,000
4040 Refuse Franchise $79,473 $60,000 $65,000
4041 AB939/SB1383 $9,916 $12,500 $12,500
4042 CalAm Franchise Fee $5,000 $10,000 $10,000
4045 PG & E Gas $4,323 $4,300 $4,300
4050 PG & E Electric $42,757 $40,000 $40,000
4055 Bus. License $842,750 $750,000 $700,000
4060 B. L. Late Fee $114 $500 $200
4340 HOPTR Tax $329 $500 $150
4350 Seaside Sanitation $12,679 $12,000 $15,000
4410 Int. General $21,145 $65,000 $60,000
4411 OPEB Interest $2,416 $600 $500
4413 Housing Interes $28,815 $15,500 $500
4414 Int GASB 87 $3,024 $0 $0
4420 Int. LAIF $454,666 $400,000 $350,000
4425 LAIF Gain/Loss GASB 31 FMV -$55,160 $0 $0
4450 TVI CD Interest $64,424 $40,000 $45,000
4500 West End Revenue $60,642 $49,500 $49,500
4502 Mural Festival $0 $0 $0
4504 Art Park Events $850 $1,000 $500
4506 MST SURF Proj $39,489 $180,000 $30,000
4530 S of Tioga Reim $373,221 $160,000 $35,000
4531 S of Tioga PC $0 $0 $0
4532 S of Tioga BP $0 $0 $0
4533 CAL AM Reimb $0 $0 $0
4550 Copies Fee $0 $50 $20
4705 City Property Sales $0 $6,250 $0
4710 Mitigation $0 $1,500 $1,500
4729 MBASIA/Fitness/Safety HR $7,500 $8,500 $8,500
4730 Misc Rev $1,508 $262,850 $20,000
4732 Reimbursements $2,541 $15,000 $2,500
4736 US Bank CalCard $1,875 $1,000 $1,000
4740 Rental Income $17,237 $43,000 $43,000
4771 CERBT Disbursement $0 $0 $205,000
4833 CAL AM Lease $53,848 $7,000 $7,000
DEPARTMENT TOTAL $11,419,025 $10,898,090 $10,981,951
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Budget Summary
Main notable expenditures include:
• Increase to CalPERS Unfunded Accrued Liability due to updated actuarial. • Increase to Computer Maintenance Contracts for software maintenance.

Non-Departmental Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5105 Health Benefits $1,535.52 $1,080.00 $742
5107 Health Benefits - Retirees $0.00 $182,948.60 $186,430 5109 CalPERs Annual Survivor $0.00 $649.00 $670
5112 CA SUI/EDD $0.00 $130.16 $0
5113 EAP Program $1,615.20 $1,924.80 $1,983
5200 CalPERS Unfunded Accrued Liability $0.00 $490,756.80 $603,286 5301 Maintenance/Service Contracts $0.00 $10,000.00 $15,450 5307 Technical Support $15,786.42 $20,000.00 $20,600
5313 Computer Maintenance Contracts $0.00 $0.00 $7,500
5401 Municipal Code Updates $2,351.00 $3,100.00 $3,193
5402 Memberships Public Agencies $6,258.82 $10,000.00 $11,845 5403 Memberships Voluntary $7,979.00 $10,000.00 $10,300 5404 Arts Council $1,390.71 $1,000.00 $10,300
5405 Advertising $0.00 $20,600.00 $20,600
5406 Dues/Subscrptions/Publications $474.66 $1,500.00 $1,545 5409 GASB 68 Reports $2,100.00 $2,100.00 $0
5410 Trainings/Meetings $0.00 $1,030.00 $1,000
5417 Donations $7,768.68 $6,000.00 $6,000
5421 Miscellaneous Expense $10,046.12 $8,000.00 $4,120
5422 Public Official Bonds $1,276.00 $1,381.00 $1,545
5424 Bank Charges $29.72 $500.00 $515
5427 Claims Payments $0.00 $30,000.00 $10,300
5502 Equipment Maintenance $8,458.03 $1,030.00 $1,030
5503 Auto Maintenance $0.00 $6,180.00 $3,605
5600 Office Phones $2,559.97 $1,545.00 $1,591
5601 Utilities $31,703.92 $25,750.00 $32,651
5605 Internet Service $3,305.53 $3,090.00 $9,270
5700 Office Supplies $28,399.25 $25,750.00 $28,840
5705 Equipment Purchases $10,128.81 $6,180.00 $5,150
5707 Computer Equipment $0.00 $14,500.00 $3,090
DEPARTMENT TOTAL $143,166 $886,725 $1,003,151
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Community Development

Description
The Sand City Community Development Department consists of the Planning and Building Departments.

The Planning Department is primarily responsible for coordinating interagency review and analysis of land use and development entitlements for consistency with the City’s General Plan, Zoning Ordinance, and Subdivision Ordinance. The Department assists with code enforcement actions and assists other departments and agencies to implement special projects and capital improvements. Long-term planning conducted by the Planning Department includes updates to the General Plan, Local Coastal Program Housing Element of the General Plan, and Zoning Ordinance (Municipal Code Title 18), and grant funding for a variety of projects that benefit the Community. The Planning Department also prepares and administers the City’s Design Review Committee (DRC) with agendas, reports, action minutes, and presentations. Finally, the Planning Department advises the City Manager regarding compliance with State planning and zoning laws, the Coastal Act, and the California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA).
2023-24 Accomplishments
The City’s planning department provides the following general services to the City and the public:
• Provide routine staff support for the City and the public in-person, on the telephone and electronically on matters related to planning, zoning and development review.
• Prepare public hearing notices, staff reports and resolutions for City Council consideration on matters related to General Plan Amendments, Zoning Ordinance updates, and entitlements.
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• Coordinate inter-departmental and inter-agency review of zoning permits and development entitlements.
• Prepare, for City Council review, Annual General Plan and Housing Element Progress Reports.
• Compile an on-call list of specialists in the areas of transportation, biology, archaeology, air quality, etc.
• Coordinate preparation of documents related to the CEQA/NEPA status of projects, including related technical reports (biological, archaeological, air quality, etc), and arrange preparation of such reports as necessary to inform the environmental review process.
• Prepare and apply for City grant funding to implement the General Plan and Local Coastal Program programs.

The City currently contracts with EMC Planning Group (EMC) for Planning Services. The level of service and planning bandwidth has increased greatly since the City moved from having one City Planner to utilizing the wide array of services provided by the EMC Planning Group team. Beginning in first quarter of FY25-26, the City will again transition planning services by hiring a Planning Manager. The role of EMC Planning Group will be adjusted accordingly. Nonetheless, the extent of Planning programs will continue to apace during the next fiscal year, including initiatives related to coastal access and resource conservation, new resort development, affordable housing, Vibrancy and Parking Plan implementation, the comprehensive General Plan update and Zoning Ordinance amendments necessary to accommodate State planning mandates and General Plan implementation.

In addition to the general planning services set forth above, in fiscal year 24-25 EMC Planning Group has accomplished a number of special projects including:
• Coordinated the initial conceptual design (10%) of the TAMC right of way Bike Trail to connect Playa Avenue to Contra Costa and beyond through Seaside and to Monterey; presented this design to TAMC; applied for and obtained grants to plan and partially implement this project; coordinated 30% plans for the Bike Trail Project.
• Coordinated the initial conceptual design of the Coastal trail improving access to the City’s coastline; applied for and obtained Coastal Conservancy grant for planning the trail.
• Worked with all departments to develop and obtain Council approval of an updated fee schedule to increase City’s ability to recoup its costs associated with City services.
• Developed an initial vision for Council to consider the short term and the long-term use of the City’s Art Park; assisted in the acquisition of a private parcel to add to the Art Park.
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• Studied and advised City regarding MST’s SURF! Busway study impacts to Sand City vehicle, pedestrian, and bicycle circulation and the City’s shopping centers and biological resources, processing MST’s CDP application. • Prepared and administered a number of grant applications. • Worked with City Manager on Cal Am seawall removal and habitat mitigation; created a plan to remove the seawall and debris on the beach north of Tioga Avenue.
• Continued planning support to the West End Stormwater Project. • East Dunes residential project, habitat preservation, and Incidental Take Permit; (working towards securing a City-wide Incidental Take Permit to create a developable residential area in the East Dunes in exchange for a habitat conservation area).
• Planning of Edge Water Habitat Restoration.
• Ensuring the South of Tioga Park Completion.
• Drafting the City’s Housing Element and working with Council and HCD towards certification.
• Working with consultant to prepare Objective Design Standards for the City. • Finalized the City’s parking plan and work with City staff to include specific parking, projects in the annual Capital Improvement Program (CIP) for eventual implementation.
• Prepared quarterly newsletters for residents and business in Sand City. • Assisted City with design concepts for Tioga Avenue City Monument Sign Design and police car redesign.
• Organized the City’s planning files from the former system to a better system that allows current and future planners to locate files.
• Prepared procedures for the processing of permits to ensure all required steps are taken and the process is streamlined.
• Drafted regulations and coordinated establishment of a permit process for new cannabis retail sales;
• Completed an application to the State Dept of Housing and Community Development (HCD) for Pro-Housing designation to enable the City to secure financial resources to support affordable housing development within the City 2025-26 Initiatives
Several initiatives are in the pipeline for fiscal year 25-26, including completing initiatives that were started in fiscal year 24-25:
• Continue to apply for grant funding for construction of the City’s TAMC right of way pedestrian bike path (this will continue into the next fiscal year).
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• Prepare plans for the City’s coastal trail and apply for implementation grants (this will continue into the next fiscal year).
• Redesigning the City’s website -- creating economic development pages. • Implementing a Cannabis Retail Licensing Program.
• Working with design firm to develop feasibility study and concept rendering for the City’s art park.
• Continue working with the City Engineer and design team to complete construction drawings and implement construction of street, storm water management, landscaping, and parking improvements along Catalina and Contra Costa Streets. • Implement the General Plan Certified Housing Element, per State law, and will now continue with the implementation of the Housing Element. • Begin General Plan update to include CEQA review/documentation, including zoning code update. This will be a multi-year project.
• Work with the City Manager, Code Enforcement, and Police Chief in developing an effective code enforcement program.

Budget Summary
Main notable expenditures include:
• An increase in Salaries and associated benefits line item for the addition of a FT Planning Manager.
• A decrease to Contract Service line item for EMC contract services for all general services offset by the increase to salaries and benefits.

Planning Revenues
Account Account Description Actual Revenue Amended Budget Proposed Budget 4116 STR Application $394 $2,875 $2,875
4120 Coastal Permit $0 $1,575 $1,575
4125 CUP $2,000 $4,600 $4,600
4126 Temporary CUP $350 $1,300 $1,300
4145 Site Permits $100 $1,050 $1,050
4155 Design Review $0 $700 $700
4156 Sign Permit $0 $550 $550
4159 CEQA Fees $0 $350 $350
4160 Special Events Permits $0 $0 $1,000
4219 Parking Permits $1,700 $1,000 $1,000
DEPARTMENT TOTAL $4,544 $14,000 $15,000
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Planning Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5000 Salaries $0.00 $0.00 $161,058
5006 Fitness Pay $0.00 $0.00 $1,854
5012 Overtime Pay $0.00 $0.00 $0
5100 L.T.D. $0.00 $0.00 $1,452
5102 Dental $0.00 $0.00 $2,716
5103 Vision $0.00 $0.00 $361
5104 Life Ins. $0.00 $0.00 $247
5105 Health Benefits $0.00 $0.00 $32,576
5107 HEALTH-RETIREES $0.00 $0.00 $0
5107 Health Benefits - Retirees $20,864.75 $0.00 $0
5108 CalPERS Employer $0.00 $0.00 $20,600
5109 CalPERs Annual Survivor $0.00 $0.00 $0
5110 Deferred Compensation $0.00 $0.00 $3,708
5111 FICA/Medicare $0.00 $0.00 $2,646
5300 Contract Services $440,018.14 $782,000.00 $510,383 5306 IWORQ $2,041.67 $1,701.00 $1,751
5405 Advertising $0.00 $292.50 $0
5410 Trainings/Meetings $0.00 $250.00 $5,000
5419 Liability Insurance $0.00 $0.00 $12,894
5423 Workers Compensation Insuran $0.00 $0.00 $25,772
5600 Office Phones $1,270.15 $600.00 $618
5707 Computer Equipment $0.00 $0.00 $3,000
5355 Façade Program $0.00 $47,246.00 $0
NA Advertising $21,569.03 $0.00 $0
NA Liability Ins. $0.00 $0.00 $0
DEPARTMENT TOTAL $485,763 $832,090 $786,636
Building Department
The Building Department is responsible for conducting construction plan review, building/fire code enforcement, and site inspections of all developments to ensure compliance with Building, Fire, and other relevant building codes (Cal-Green, Plumbing, Electrical, etc.).

The Building/Code Compliance Department has been active in FY 2024-2025. A few highlights of this Fiscal Year’s activity showcase the increased development happening in the City of Sand City. In FY 2024-2025, The Marriott Dual Brand Hotel is getting closer to completion with an expected opening in early 2026.

The building department continues to be busy with numerous applications such as the proposed Wonderwall Hotel, additional apartments located on the ground floor of the Independent, a new bakery, a new delicatessen, short-term rental re-inspections, and 312
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more. Lastly, Code Compliance has been actively working to gain voluntary compliance through communications prior to starting the administrative process approved by City Council.

Budget Summary (Building)
• An increase overall to account for the amount of the approved Contract Services with 4Leaf for Building services due including increased Code Enforcement work.

Building Revenues
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Revenue Amended Budget Proposed Budget 4115 Bldg. Permit $22,070 $13,500 $13,500
4164 STR Inspection $1,182 $3,150 $3,150
4165 Plan Check Fees $13,367 $10,500 $10,500
DEPARTMENT TOTAL $36,619 $27,150 $27,150
Building Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5300 Contract Services $0 $115,000 $150,000
5306 IWORQ $2,800 $4,790 $4,893
N/A Building Insp $37,890 $0 $0
DEPARTMENT TOTAL $40,689 $119,790 $154,893
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Public Works
Description
The Public Works Department is responsible for the maintenance of City facilities and buildings, public streets and the storm drain system, public spaces, parks, bike trails and walking paths, as well as City-wide planning efforts to realize the City’s goals, policies, and initiatives.

Sand City Public Works performs a wide variety of tasks from planting and trimming City trees; maintaining the two City Parks and the Community garden, the recreation trail, City buildings, vehicles, equipment, and grounds to providing a safe, effective, and longlasting road system; repairing sidewalks, streets, and signs; ensuring clean streets, pothole repair; sign and pavement marking maintenance; street sweeping, including sand removal, repairs on vehicles and equipment; graffiti abatement; litter control; hanging and removing City banners; installing no parking signs as needed; maintaining storm water drainage; and doing so in an efficient, cost-effective manner without detrimental effects to the environment.

Public Works’ functions include administrative duties (quarterly storm water reports; Council staff reports; Public Works monthly report; safety meetings; well usage reporting; overseeing the Hope Crew); implementation of State Mandated organic waste collection; environmental duties; implementation of the State mandated storm water program; tracking of the City’s use of pesticides, herbicides, and fertilizers; as well as sweeper spoils and reporting any illicit discharges.

In addition, the Public Works department supports the City’s special events such as the City Barbecue, Tree Lighting, West End event, Mural Fest and the monthly 831 Night Market.
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2024-25 Accomplishments
Public Works:
• Public Works continues implementation of the SB-1383/CalRecycle mandates and related reporting.
• PWs addressed numerous cleanups of transient camps and associated debris.

Numerous vagrant shopping carts were another all-year task • Landscaping and improvements to Calabrese Park
• Staff performed the annual stormwater maintenance program, inspecting 43 and cleaning 12 stormwater drain catch basins of debris
• Public Works staff filled potholes in the city streets and bike path, throughout Sand City
• PWs staff Installed new fencing and gates to the City’s community garden • Public Works implemented the AB-413 daylighting of crosswalks (20 red curbs painted)
• Built a new 12’ x 20’ roof/overhang off of one of the Conex’s for barricade & sign storage
• Assisted with the set-up of the new finance/city clerk office areas • Staff completed and submitted four (4) storm water quarterly reports to the City Engineer
• Staff installed (14) new speed limit signs
• Staff weeded and cleaned up the Community Garden and landscape 2025-26 Initiatives
• Continue with maintenance and improvements to the City’s infrastructure with minimal budgetary impact.
• Implement the new City Park and street landscape into the Public Works maintenance program
• Continue with repainting of red/blue curbs to include West Bay and Tioga avenues
• Continue with keeping both sections of the bike paths free of sand • Improvements to the PWs storage areas will continue
• New landscaping at the front of City Hall, after the new parking lot installation Budget Summary
Main notable expenditures include:
• An increase of $20,511 to Salaries to reflect a City Council approved 4% COLA effective June 1, 2025 and a 4% COLA effective July 1, 2025. 315

• An increase of $10,155 to Workers Compensation due to an increase in claims and payroll.
• A decrease of $15,450 to Street Maintenance due to AB413 striping was completed in FY 24/25.
• An increase of $51,000 to Urban Runoff for Annual Maintenance and Cleaning.

Public Works Revenues
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Revenue Amended Budget Proposed Budget 4150 Building Development Fees $0 $500 $500
4160 Engineering Fees $17,600 $18,000 $18,000
4205 CA Code Fines $1,581 $750 $750
4305 Gas Tax Funds (HUTA) $15,514 $15,974 $15,988
4302 Measure X $0 $147,723 $40,000
4306 Road Maintenance (RMRA) $41,428 $9,738 $9,944
DEPARTMENT TOTAL $76,122 $192,685 $85,182
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2025-26 Budget

Public Works Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5000 Salaries $251,647 $283,870 $292,381
5005 Special Skills $0 $12,000 $0
5006 Fitness Pay $2,880 $3,000 $3,090
5007 Uniform Allow. $4,158 $3,090 $3,183
5009 Paid Time Off $2,049 $2,575 $2,652
5012 Overtime $5,376 $3,000 $3,090
5100 L.T.D. $2,542 $2,741 $2,823
5102 Dental $5,244 $7,661 $6,161
5103 Vision $713 $1,145 $819
5104 Life Ins. $648 $648 $742
5105 Health Benefits $48,305 $52,164 $52,164
5106 Pers EE Portion Paid by Emp $4,117 $11,772 $28,201 5108 CalPERS Employer $47,838 $35,002 $34,134
5109 CalPERs Annual Survivor $71 $89 $0
5110 Deferred Compensation $8,000 $10,800 $11,124
5111 FICA/Medicare $4,353 $5,063 $5,177
5112 CA SUI/EDD $282 $0 $0
5200 CalPERS Unfunded Accrued $172,022 $0 $0
5119 Longevity $0 $0 $15,037
5300 Contract Services $164,162 $77,000 $79,310
5321 Hope Services $72,856 $0 $0
5306 IWORQ $0 $0 $0
5307 Technical Spprt $535 $0 $0
5406 Dues/Subscrptions/Publicatio $0 $1,133 $1,030
5408 Permits/Licenses $13,644 $10,300 $10,609
5410 Trainings/Meetings $1,557 $5,150 $5,150
5414 Adopt A Highway $4,200 $4,542 $4,635
5415 SECURITY $129 $0 $0
5419 Liability Insurance $15,917 $18,475 $25,225
5420 STORAGE $4,903 $0 $0
5423 Workers Compensation Insur $54,878 $40,400 $50,420 5502 Equipment Maintenance $0 $20,150 $10,300
5503 Auto Maintenance $11,526 $15,450 $15,450
5504 Pest control $650 $1,560 $1,545
5506 Stormwater Maintenance $0 $20,600 $21,218
5507 Street Lighting $15,813 $30,000 $30,900
5508 Street Maintenance $6,816 $66,950 $51,500
5509 Urban Runoff $7,120 $0 $51,000
5600 Office Phones $1,738 $1,545 $1,751
5602 Refuse/Trash $5,389 $9,270 $14,000
5605 Internet/Web $1,548 $1,750 $2,060
5701 Flags/Banners $2,367 $5,624 $6,180
5701 Supplies $3,046 $9,150 $10,300
5702 Auto Fuel $0 $13,390 $10,300
5705 Equipment Purchase $15,023 $7,210 $5,150
5707 Computer Equipment $0 $1,030 $2,575
5708 Equipment Rental $590 $1,545 $1,545
5709 Street Signs $2,147 $11,635 $8,240
DEPARTMENT TOTAL $966,798 $808,481 $881,171
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Engineering
The City Engineer, under the direction of the City Manager, and in collaboration with other City departments, contractors, consultants and the community, plans and manage coordinates, supervises and reviews the design and construction of City infrastructure and public facilities.

The Engineering Department provides the following services:
• Manages and implements civil improvement projects outlined in the City’s Capital Improvement Program (CIP).
• Issues calls for Bids and Request for Proposals (RFP). • Evaluates and negotiates contracts and provides recommendations for award. • Manages the City s’ Encroachment Permit Program, which regulates any work or impacts to the public right-of-way.
• Manages the City’s Municipal Storm Water Permit and Program. • Represents the City on local and regional Technical Advisory Committees. • Prepares reports for, and assists with, various transportation funding programs. • Coordinates with utility provides for water, sewer, gas, electric, and communications services.
• Reviews proposed developments and site improvements for adherence to City standards and local, state and federal requirements, codes and regulations, and best engineering practices.
• In collaboration with the City Surveyor, reviews Final Maps, Parcel Maps, Lot Mergers, Lot Line Adjustments, Easements, and related documents. •
The City’s Land Surveyor reviews all land use maps, lot line adjustments, lot mergers, legal descriptions, and related materials. The City contracts with Polaris Land Surveying, LLC for Land Surveying services.
2024-25 Accomplishments
In Fiscal Year 2024-25, the Engineering Department provided the following services:
• West End South of Tioga Development Phase 1 Off-site Improvements: provided condition compliance and construction support services during completion of the public improvements along Tioga Avenue, California Avenue, Morgan’s Way, and Shake Avenue, performed final inspection and recommended acceptance of the improvements to the City.
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• Marriott Dual Brand Hotel: provided development review and plan check services for review of the Stormwater Control Plans for the hotel, Esselen-Ohlone Park, and coordinated with the City’s building department during the construction phase, coordinated encroachment permits for gas tie-in and PG&E electrical services with the contractor, CSI.
• Monterey-Salinas Transit (MST) SURF! Bus Rapid Transit (BRT) Project: provided development review and plan check services for the improvement plans and supporting documents, coordinated with the City’s building, planning, and public works departments to track conditions of approval, participated in meetings with MST, TAMC, and local stakeholders.
• Multiuse Trail Project: coordination with the city’s planning department and the design team to develop the 30% project design.
• Coastal Trail Project: provided record information to the design team to support the design of the project.
• Provided project management of the West End Stormwater Improvement Project on Contra Costa Street and Catalina Street and managed the grants awarded for same.
• Developed plans and obtained bids for the Tioga Ave. at Sand Dunes Dr. striping and Carroll Building ADA striping projects.
• Administration and management of the city’s Encroachment Permit program including the issuance of 30+ permits and established an annual encroachment permit with PG&E to cover routine categories of work and ensure 100% cost recovery.
• Updated the City’s Pavement Management Program (PMP) including development of a draft 5-year maintenance program based on available funding. • Provided engineering and technical support to respond to Public Records Requests.
• Provide engineering support services for various grant applications. • Development review and plan check services for a number of smaller projects including the Wonderwall Hotel, B.E. Bakery, Yard Food Truck Hub, and Smooth Coffee.
• Management of the City’s National Pollutant Discharge Elimination System (NPDES) Municipal Storm Water Program and prepared the City’s Annual Storm Water Report.
• Engineering support services for the Sand City Water Supply Project (SCWSP) Phase 1 New Intake Wells and coordination with California-American Water. • Serves as the City’s representative on the Seaside Groundwater Basin Watermaster and TAMC Technical Advisory Committee (TAC). 2025-26 Initiatives
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• Design and construct street maintenance and rehabilitation (M+R) projects on Holly Street, California Ave. at Edgewater Center, Playa Avenue. • Implement additional parking based on the West End Parking Plan. • Decorative crosswalk refresh at various locations to improve • Provide engineering support services for the MST SURF! Bus Rapid Transit and Marriott Dual Brand Hotel projects.
• Utilize transportation funding programs such as Measure X, SB 1, and RSTP, to support street, pedestrian and bicyclist safety improvements. • Supervise bidding and construction of the stormwater improvement project. • Continue to assist City in grant applications for CIP projects.

Budget Summary
• Slight decrease in Contract Services line item due a onetime traffic study of $18,000 that occurred in FY 24/25.

Engineering Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5300 Contract Services $0 $263,347 $245,000
5420 Storage Rental $0 $6,600 $7,379
DEPARTMENT TOTAL $0 $269,947 $252,379
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Public Safety
Description
The Chief of Police manages the Police Department and acts as the Emergency Operations Center coordinator.

The Police Department is responsible for law enforcement and crime prevention within the City. The Mission of the Sand City Police Department is to work in partnership with the community to provide exceptional police services that improve the quality of life for our residents, businesses, and visitors. The Department works in partnerships with Seaside, Marina, and California State University Monterey Bay (CSUMB) to operate and support a Regional Emergency Coordination Center. The Department also participates in the Peninsula Regional Special Response Unit (SRU).

The Fire Department is primarily responsible for saving lives and protecting property through the prevention and control of fires. Fire service has been provided under a contract with the City of Monterey since 1995. The City’s ambulance service is through the American Medical Response (AMR) service.
2024-25 Accomplishments
• The SCPD implemented a new Body Worn Camera (BWC) system along with 2 new in-vehicle cameras, improving our ability to capture real time footage, improving efficiency through cloud-based storage, and reduce staff time by partnering with the District Attorney’s Office to allow joint access to specific criminal cases.
• The SCPD implemented a new law enforcement software system called LEFTA Systems to improve the process for monitoring training requirements, community complaints, internal investigations, pursuit and use of force policy compliance, and other state mandated reports.
• The SCPD hosted a state-wide training review of the Santa Clara County Valley Transit Authority active shooter tragedy. Presented at the CSUMB conference auditorium, agencies from across the state attended.
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• The SCPD successfully passed the annual state hiring and training audit by the California State Commission on Peace Officer Standards and Training (POST). • SCPD in partnership with the American Red Cross and Vitalant Blood Donation services will have completed a five community blood drives by the end of the current fiscal year.
• The SCPD conducted a Holiday Crime Prevention presentation to our retail partners to help educate them on recent crime trends and the actions that would be beneficial in reducing crime and apprehending the offenders. • The SCPD partnered with Target and the local Boys and Girls Club to provide holiday gift and shopping opportunities to children who are less fortunate • The SCPD with City staff completed the first phase of a series of emergency operations training in conjunction with the Emergency Operations Center (EOC) at CSUMB. Moving forward we will conduct annual refresher training. 2025-26 Initiatives
• The SCPD plans to implement two on-line programs to increase the officers’ ability to access training on current events, law changes, and changes in case law increasing their knowledge base and decreasing potential liability. The Briefing Room allows officers to log-in and review current cases with interactive Q&A. Legal Updates.com provides current updates to current law and statutory updates as they occur.
• Implement an Evidence & Property policy manual to help manage the process of seizing, receiving, storing, and retrieving property and evidence while maintaining the integrity of the system, coming into compliance with state and federal regulations, and reducing potential liability.
• Begin the process of implementing new Records Management System (RMS) to transition from the old system to a new, more efficient, and more cost-effective RMS. • The SCPD will continue to utilize, improve, and leverage technology to assist us in providing excellent service to our community in a more efficient and effective manner.

Budget Summary
Main notable expenditures include:
• An increase in Salaries due to a City Council approved 4% COLA effective June 1, 2025 and a 3% COLA effective July 1, 2025.
• An increase to Workers Compensation and Liability line items due to increased claims and payroll.
• An increase of $31,156 to Reserves as a request from the Chief to hire an additional Reserve Officer.
• An increase of $32,000 to Computer Equipment for the purchase of laptops for patrol vehicles.
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Public Safety Revenues
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Revenue Amended Budget Proposed Budget 4069 CLEEP Grant $202,826 $180,000 $180,000
4210 City Fines $4,202 $4,200 $4,200
4211 Vehicle release $760 $1,000 $1,000
4221 Sand City Parking $8,949 $7,500 $7,500
4325 Motor Vehicle $0 $500 $500
4330 Prop 172 $2,725 $500 $500
4335 Post Reimburse $1,900 $4,100 $4,100
4515 Dog Licensing $0 $100 $100
4524 Asset Forfeitur $0 $1,500 $1,500
4560 Special Police $335 $400 $400
4639 Officer Wellness Grant $0 $0 $0
4647 Bullet Proof Vest Grant $341 $1,900 $1,900
4730 Other $25 $0 $0
4732 Reimbursements $18 $0 $0
4836 CSA74-GRANT EMS $2,500 $2,500 $2,500
DEPARTMENT TOTAL $224,582 $204,200 $204,200
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Public Safety Police Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5000 Salaries $1,463,825 $ 1,503,226 $1,723,145
5003 Reserves $25,258 $ 25,750 $56,906
5005 Special Skills $16,823 $ 181,236 $1,236
5006 Fitness Pay $6,450 $ 8,400 $6,798
5007 Uniform Allow. $10,351 $ 9,270 $9,270
5008 PD Education $70,398 $ 82,393 $82,340
5009 Paid Time Off $268,017 $ 288,400 $206,000
5010 Holiday $12,668 $ 15,450 $58,710
5012 Overtime $57,247 $ 85,000 $80,000
5014 Advance Disability Payment $0 $ - $0
5017 Shift Differential $0 $ 8,725 $20,600
5100 L.T.D. $5,469 $ 5,872 $6,048
5102 Dental $21,248 $ 23,597 $25,619
5103 Vision $3,094 $ 3,254 $3,352
5104 Life Ins. $2,322 $ 2,376 $2,719
5105 Health Benefits $272,272 $ 264,419 $290,339
5106 Pers EE Portion Paid by Employer $0 $ 12,125 $12,183 5107 HEALTH-RETIREES $108,729 $ - $0
5108 CalPERS Employer $363,766 $ 356,083 $351,190
5109 CalPERs Annual Survivor $307 $ - $0
5110 Deferred Compensation $48,450 $ 43,200 $44,496
5111 FICA/Medicare $28,075 $ 32,107 $33,736
5112 CA SUI/EDD $1,399 $ 133 $155
5200 CalPERS Unfunded Accrued Liab $194,951 $ - $0
5119 Longevity $0 $ - $116,173
5300 Contract Services $0 $ 32,500 $42,500
5301 Maintenance/Service Contracts (N $21,048 $ 24,436 $22,938 5307 Technical Support $19,520 $ 21,630 $20,600
5309 Animal Reg/Vet $3,864 $ 6,000 $5,150
5310 Criminal Justice Information Syste $44,580 $ 42,266 $45,000 5311 911 Center Operations $41,151 $ 45,192 $51,301
5312 Arrests/Investigations $4,480 $ 15,150 $10,300
5313 Computer Maintenance Contracts $15,443 $ 21,480 $22,145 5406 Dues/Subscrptions/Publications $1,992 $ 2,369 $4,630 5410 Trainings/Meetings $10,446 $ 11,330 $20,000
5412 Emplmnt Screen $343 $ 3,500 $3,605
5413 SRU Annual Fee $5,000 $ 5,000 $5,000
5415 SECURITY $11,338 $ - $0
5419 Liability Insurance $93,953 $ 118,890 $153,610
5420 Rental Payments $3,350 $ 5,768 $6,180
5423 Workers Compensation Insurance $323,930 $ 259,977 $316,243 5425 EOC Expenses $5,000 $ 5,000 $5,150
5502 Equipment Maintenance $0 $ 5,150 $5,305
5503 Auto Maint. $36,076 $ 17,660 $23,340
5505 Auto Detailing $522 $ - $3,193
5600 Office Phones $11,321 $ 8,500 $12,731
5604 Nighthawk WiFi $2,897 $ 3,090 $3,183
5605 Internet/Web $2,922 $ 3,193 $3,289
5701 Police Supplies $3,919 $ 5,989 $6,684
5702 Auto Fuel $29,032 $ 20,220 $25,462
5704 DOJ- Vests $601 $ - $4,738
5705 Equipment Purchases $1,539 $ 12,599 $15,450
5706 Range Fees/SUP $1,575 $ 4,000 $10,300
5707 Computer Equipment $34,862 $ 7,875 $40,000
NA Prior Charges $168,081 $ - $0
DEPARTMENT TOTAL $3,879,905 $3,659,779 $4,019,039
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2025-26 Budget

City Fire Department Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5300 Fire Contract $346,268 $358,387 $364,151
DEPARTMENT TOTAL $346,268 $358,387 $364,151
325

Community Outreach

Description
The City funds several Community Outreach and economic development efforts that provide art, music, and other forms of culture to the community, and the region beyond, at no charge. These endeavors enhance the quality of life for residents and promote the City as an artistic and cultural destination, including:
• the annual West End Celebration
• the annual we. Mural festival
The City also operates a community art park which serves as a performance venue and is rented for a nominal fee by community members and non-profits for events for music, theatrical and other cultural activities.

It is important to the City of Sand City to also maintain the beautiful coastal habitats within the City as that will enhance life for all residents and visitors alike.

In addition, the City holds several annual events that are open to the public and provide music, activities, and refreshments to the entire community at no charge such as the City’s Birthday Barbeque and the Holiday Season Tree Lighting Ceremony.

Community Outreach Revenues
Account Account Description Actual Revenue Amended Budget Proposed Budget 4410 Edgewater Account Interest $0 $20 $20
4706 Habitat Revenue $0 $30,000 $15,000
4755 Environmental Enhancement Fees $0 $439,956 $0
DEPARTMENT TOTAL $0 $469,976 $15,020
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Community Outreach Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5302 West End $95,234 $95,000 $97,850
5405 Advertising $15,755 $10,000 $10,300
5406 Dues/Subscrptn $283 $0 $0
5410 Trainings/Meetings $829 $1,030 $1,061
5416 City Events $35,320 $41,200 $42,436
5500 Building Maintenance $4,925 $6,489 $6,684
5510 Park Maintenance $5,935 $4,200 $4,326
6002 Bike Trail Elec $4,219 $500 $515
6207 Mural Festival $100,000 $80,000 $80,000
DEPARTMENT TOTAL $262,500 $238,419 $243,172
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Government Buildings
Description
The Government Buildings section of the budget covers the maintenance, supplies for and security of several properties owned by the City: the City Hall building and the Public Works offices.

Budget Summary
• A small decrease to Building Maintenance by $3,090 for FY 2025-2026.

Government Buildings Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5415 Security/Alarms $1,957 $10,000 $10,300
5418 Fire/Theft Insurance $46,670 $48,425 $51,500
5500 Building Maintenance $17,683 $18,540 $15,450
5700 Office Supplies $249 $650 $515
DEPARTMENT TOTAL $66,559 $77,615 $77,765
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Parks
Description
The City provides for the beautification and maintenance of several public open spaces including Calabrese Park, the Recreation Trail, the Community Garden, the EsselenOhlone Park and the parklets at the entrances to the City, as well as parklets and landscaping in a new development in the City. The City’s public works staff maintain the parks.

Budget Summary
• A decrease to Irrigation/Landscape of $5,150 for FY 2025-2026.

Parks Expenditures
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 5300 Contract Services $5,700 $28,100 $28,840
5511 Park/Landscape Improvements $6,773 $15,450 $15,914 5501 Parks Maintenance $0 $2,575 $2,575
5502 Equipment Maintenance $170 $2,575 $2,575
5603 Irrigation/Landscape $0 $10,300 $5,150
5701 Park Supplies $3,222 $5,150 $5,150
5705 Equipment Purchases $3,664 $6,180 $6,180
DEPARTMENT TOTAL $19,529 $70,330 $66,384
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Capital Outlay, Capital Improvement & Special Projects
Description
Several Capital improvement and outlay projects are budgeted for including the Catalina – Contra Costa stormwater improvement project. Capital improvements include street repairs, the construction of parking spaces, and other major projects. Capital outlay describes pieces of equipment, software, and the like that depreciate over time such as vehicles.

Budget Summary
• Two Capital Improvement Projects for Stormwater Improvements are scheduled to be completed in FY 2025-26. These projects have an offsetting revenue source from a State Water Resource Control Board Proposition 1 Grant. • The Police Department has budgeted $57,000 in Capital Outlay for the purchase of new Police Department tasers.
• Continued work will be occurring in FY 25/26 for affordable housing at the Art Park. $100,000 has been budgeted in FY 25/26 for this work. • The capital Improvement project will be underway in FY 2024-2025 to the planning of a new coastal trail. $195,000 has been budgeted for the expenditures related to the planning portion, which will be fully funded by a grant from the Coastal Conservancy.
• The Bike Trail has $237,675 in the budget for FY 2025-2026 The City expects an amendment to this item once it obtains final award of several grants it has applied for.
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CAPITAL OUTLAY & IMPROVEMENT PROJECTS
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 6000 Storm Water Improvements - Catalina $0 $652,000 $405,418 6000 Storm Water Improvements - Contra Costa $0 $1,639,500 $1,326,057 6000 Capital Outlay - Streets $0 $0 $762,000
6000 Capital Outlay - Police Department $139,202 $133,998 $152,000 6000 Capital Outlay - Art Park Imp $0 $25,000 $100,000
6001 Capital Outlay - Public Works -$287 $42,293 $120,000 6001 Capital Project - Coastal Trail $22,802 $423,000 $195,000 6002 Capital Project - Bike Trail $29,182 $275,818 $237,675 6003 Capital Project - Affordable Housing - PLHA $42,998 $240,650 $0 N/A Capital Outlay $0 $0 $0
N/A FEMA Grant-West Bay $311,860 $0 $0
N/A Contract Services - Parking Plan $693 $0 $0
6000 Capital Outlay - City Hall Imp $17,667 $20,000 $50,000 DEPARTMENT TOTAL $564,117 $3,452,259 $3,348,150
Several special projects are included in the budget, while some will continue to be implemented in FY 25-26 with a carryover from the prior fiscal year. The City hopes to restore the habitat behind the City shopping centers; although the 6th Cycle Housing Element has been completed and certified, additional work will be needed to make updates to the Municipal code for those changes; further, the City is required to update its general plan.

SPECIAL PROJECTS
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Expenses Amended Budget Proposed Budget 6100 S of Tioga Reimbursements $337,153 $160,000 $35,000 6101 MST SURF Reimbursements $51,633 $180,000 $30,000
6102 R2 - Fairfield Reimbursements $0 $0 $0
6201 Digital Records $10,914 $20,000 $0
6203 Housing Element $216,024 $85,000 $85,000
6204 General Plan $0 $300,000 $250,000
6205 Retail Cannabis $2,829 $114,712 $0
6206 Website - REAP 2.0 Grant $38,527 $46,473 $0
6207 East Dunes City Wide ITP $0 $0 $100,000
NA S OF TIOGA BI $11,239 $0 $0
DEPARTMENT TOTAL $668,319 $906,185 $500,000
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GRANTS
Recurring Grants
COPS Grant
This fund accounts for the expenditures for the Department of Justice Community Oriented Policing Services (COPS) grant for public safety. In FY 23-24, the projected COPS revenue of $150,000 was transferred to the General Fund for Police Department salaries for eligible positions.

There are no line items for expenses shown in “Recurring Grants Expenditures” as the funding is put toward salaries and is reflected in the Police Department budget.

Bulletproof Vest Partnership (BVP) Grant
The Bureau of Justice Assistance (BJA) initially awarded Sand City the Bulletproof Vest Partnership solicitation in Fiscal Year 2008-2009 and has continued the award since. The funding may be used for National Institute of Justice (NIJ) compliant armored vests and only one vest may be purchased per officer in a replacement cycle. Fifty percent (50%) of funding can be used to pay for this tactical-level armor.

MBASIA Safety/ Fitness Grant
Funding has been allocated by the Monterey Bay Area Self Insurance Authority (MBASIA) to be used for Safety Services. This funding can be used for items such as office mats, fire extinguishers, ergonomic keyboards, first aid kits, Public Works boots, Public Works safety vests, immunizations, orange street cones, Public Works hard hats, emergency kits for vehicles, and flashlights.

This grant also allocates funding for a fitness program reimbursement. The funding is used by the City to maintain a Health and Wellness Program, which provides an incentive to motivate employees toward healthy lifestyle choices. The program reimburses regular employees for a one-time initiation fee and a $150 monthly incentive per employee enrolled in a fitness plan.

The City has received this grant since Fiscal Year 2013-2014.

CSA 74 Emergency Medical Services Grant
On July 20, 2010, the Emergency Medical Care Committee (EMCC) approved the establishment of a $1.5 million reserve and the disbursement of available CSA 74 funds (after funding the EMS Agency’s budget) to approved jurisdictions using the same formula as the annual 9-1-1 dispatch billing. This formula uses assessed values, population counts, and workload numbers to compute a weighted average percentage. This 332
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percentage is then used to distribute the available fund balance after the fiscal year has closed. The Monterey County Emergency Medical Services (EMS) Agency acquired these County Service Agreement (CSA) 74 funds that are available to participating agencies supporting Monterey County emergency medical services training and equipment expenditures.

Available County Service Agreement (CSA) 74 funds are to support Monterey County emergency medical services training and equipment expenditures. Distributed CSA74 funds can only be used for direct EMS training and equipment expenses.

There is no line item for expenses shown in “Recurring Grant Expenditures” as the funding is reflected in the budgets of various departments.
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Non-Recurring Grants
These grants are those that are not expected on a regular basis and are typically onetime grant revenue. Expenditures for these items are shown in Capital Expenditures or Special Projects, however, revenues for these items are shown below.

Coastal Conservancy Grant
The State of California Coastal Conservancy provides grant funding for a wide variety of projects along the California coast, San Francisco Bay, and in coastal watersheds to increase availability of beaches, parks, and trails for the public, protect and restore natural lands and wildlife habitat, preserve working lands, and increase community resilience to the impacts of climate change. The City of Sand City was awarded $473,500 to plan and design a new coastal trail, parking improvements and a restoration plan. Of that amount, $70,000 will be carried forward in FY 2025-2026 Monterey Bay Air Resources District (MBARD)
This grant serves to work in accordance with Assembly Bill 2766 Motor Vehicle Emission Reduction Program. The City of Sand City was awarded $205,000 to plan and design a Multiuse Trail and Bike Lane Improvements to meet AB 2766 emission reduction requirements.

State Water Resource Control Board (SWRCB) Proposition 1 Grant The SWRCB’s Integrated Regional Water Management (IRWB) grant program provides funding for projects that help meet the long-term water needs of the state. The City of Sand City was awarded two separate awards for storm water improvement projects along Catalina St and Contra Costa in the amount of $1,097,400 and $2,375,202 respectively.

Non-Recurring Grant Revenues
FY 23/24 FY 24/25 FY 25/26
Account Account Description Actual Revenue Amended Budget Proposed Budget 4684 CA Dept of Parks & Rec Grant $140,279 $0 $0
4607 LEAP Grant $65,000 $0 $0
4608 REAP Grant $26,723 $53,177 $0
4609 PLHA Grant $67,139 $216,508 $0
4611 Coastal Conservancy Grant $0 $473,000 $70,000
4612 Multi Use Trail - MBARD/AMBAG Grant $0 $305,000 $237,675 4613 Cannabis Grant $0 $115,000 $0
4682 Prop 1 SW IRWM - Catalina $0 $652,000 $405,418
4683 PROP 1 SW - Contra Costa $79,124 $1,639,500 $1,326,057 DEPARTMENT TOTAL $378,265 $3,454,185 $2,039,150
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Appropriations Limit
Description
Article XIIIB of the California Constitution provides that the total annual appropriations subject to limitations of each governmental entity, including this City, shall not exceed the appropriations limit of such entity of government for the prior year adjusted for changes in population and inflation mandated by Proposition 4 (1979) and Proposition 111 (1990), except as otherwise provided in said Article XIIIB and implementing state statues.

Pursuant to Article XIIIB of the California Constitution, and Section 7900 et seq. of the California Government Code, the City is required to calculate and set its appropriations limit for each fiscal year. Based on such calculations the City had determined said appropriations limit and pursuant to Section 7910 of the California Government Code has made available to the public the documentation used in the determination of the appropriations limit.

An appropriations limit of $18,349,034 was calculated and established for Fiscal Year 2024-2025, and a new appropriations limit for Fiscal Year 2025-2026 has been calculated as $19,477,509 using the inflation factor and population increase factor allowed by state law.

Fiscal Year 2024-2025 Limit $18,349,034
Adjustment Factors
Population Growth Ratio = 0.9973
Inflation Ratio (per capita income) = 1.0644
Annual Ratio = 1.0644 x 0.9973 1.0615
Fiscal Year 2025-2026 Limit
$18,349,043 x 1.0615 = $19,477,509 $19,477,509
Appropriations Limit Calculation
Fiscal Year 2025-2026
−0.27 + 100
100

6.44 + 100
100
335

1 Pendergrass Way, Sand City, CA 93955
(831) 394-3054 • sandcity.org
336