AGENDA
Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: March 5, 2025
Time: 6:00 PM
CONTACT
INFORMATION
MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/83295730901
Agenda posted on 2-28-
2025 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov
ELECTED OFFICIALS CITY STAFF MEMBERS
Derek Timm, Mayor
Allan Timms, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Donna Lind, Council Member
Kirsten Powell, City Attorney
Stephanie Hill, Administrative Services Director
Cathie Simonovich, City Clerk
MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:
The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 PM in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066, and via Zoom Webinar remote access.
Agenda and Agenda Packet Materials:
The City Council agenda and the complete agenda packet are available for review by 5:00 PM the Friday before the Wednesday meeting on the Internet at the City’s website:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.
Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB 1344, such documents will be posted on the City’s website at www.scottsvalley.gov.
Public Participation:
The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/@cityofscottsvalley
For those wishing to participate via Zoom you can join the following ways:
Zoom Webinar meeting link: https://us02web.zoom.us/j/83295730901 Or dial one of these numbers: (669) 900-9128 or (669) 444-9171 Webinar ID: 832 9573 0901
City Council Meeting Agenda Page 2
Date: March 5, 2025
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted.
How to comment via in-person attendance:
Please proceed to the public comment podium when the Mayor opens the item for public comment.
How to comment via Zoom Webinar:
Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.
CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE
ROLL CALL
SPECIAL SET MATTER
1. Mayor's proclamation celebrating Alfred Hitchcock Week: March 10th through March 16th
COMMITTEE REPORTS
Council members are appointed to committees which are either City committees or committees dealing with other jurisdictions. This portion of the agenda allows the committee member to present oral or written reports to the Council regarding their committee assignments. It also allows the Council to make comments and give the committee member direction, as required.
CITY MANAGER REPORT
PUBLIC COMMENT TIME
This is the opportunity for individuals attending in person to make oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda. No
City Council Meeting Agenda Page 3
Date: March 5, 2025
action on the item may be taken, but the Council may request the matter be placed on a future agenda. Written public comment may be emailed to the City Clerk by 5:00 PM on the day of the meeting at [email protected].
ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.
CONSENT AGENDA
The Consent Agenda is comprised of items which are intended to be non-controversial and are approved without discussion. Persons wishing to speak on any item may request the item be moved to the Regular Agenda by raising their hand to be recognized by the Mayor. An item will only be moved from the Consent Agenda to the Regular Agenda if a City Council Member requests it to be moved and a majority of the Council agrees.
1. Approve City Council minutes of 02-19-2025
2. Approve check register dated 02-15-2025 through 02-28-2025
ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.
REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.
1. Guiding Budget Principles for Fiscal Year 2025-26
2. Future Council Agenda Items
ADJOURNMENT
ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5600 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to
City Council Meeting Agenda Page 4
Date: March 5, 2025
TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.
City Council Meeting Agenda Page 5
Date: March 5, 2025
PROCEDURAL INFORMATION FOR THE PUBLIC
THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:
1. Move the Resolution number for approval.
2. Second the motion.
3. Vote by body, a roll call vote is not required.
THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:
1. Move the Ordinance number for introduction (or adoption).
2. Move the Ordinance be introduced by title only and waive the reading of the text.
3. Read the Ordinance title.
4. Second the motion.
5. Vote by body, a roll call vote is not required.
THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:
Unless otherwise determined by the presiding officer of the meeting:
1. Three minutes allowed per individual to speak.
2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1- 800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-to-Speech, English & Spanish 1- 800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.
CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE
ROLL CALL
CITY STAFF MEMBERS PRESENT:
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Steve Walpole, Police Chief
Stephanie Hill, Administrative Services Director
Rodolfo Onchi, Public Works Director
Taylor Bateman, Community Development
Director
Sarah Wikle, Senior Planner
Cathie Simonovich, City Clerk
ELECTED OFFICIALS
PRESENT:
Derek Timm, Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Donna Lind, Council Member
ELECTED OFFICIALS ABSENT:
Allan Timms, Vice Mayor
COMMITTEE REPORTS
MINUTES
Meeting of the
Scotts Valley City Council
Date: February 19, 2025
Time: 6:00 PM
CONTACT
INFORMATION
MEETING LOCATION POSTING
City of Scotts Valley City Council Chambers The agenda was posted 1 Civic Center Drive 1 Civic Center Drive on 2-14-2025 at City Scotts Valley, CA Scotts Valley, CA 95066 Hall, SV Senior Center, 95066 OR SV Public Works Building,
(831) 440-5600 Zoom Video Conference and on the Internet https://us02web.zoom.us/j/83295730901 at www.scottsvalley.gov.
The City Council meeting was called to order at 6:00 PM.
CM Clark noted that the alternate representative, Gine Johnson, attended the Regional Transportation Commission meeting on February 6. At the meeting they voted on the non-discrimination plan and approved the final climate adaptation vulnerability assessment
City Council Meeting Minutes
Date: February 19, 2025
(CAVA) study.
CM Clark, along with VM Timms and City Manager LaGoe, attended the Economic Development Committee meeting where discussions included opportunities surrounding Superbowl LX which will be in Santa Clara, the business outreach program, and the banner program.
CM Clark attended the Workforce Santa Cruz County meeting to explore how to assist Scotts Valley's businesses with filling employment vacancies.
CM Clark, along with City Manager LaGoe, attended the Chamber of Commerce Economic Development Committee meeting where they discussed a proposed new layout of the Art, Wine, and Beer Festival. Additional updates from the Chamber include: the Hitchcock Festival will be March 14-16, and a proclamation request may be forthcoming; the Chamber of Commerce Gala will be on May 9 and the theme is Passport Around the World.
CM Clark attended the Seniors Council Area Agency on Aging meeting and noted that the agency is currently accepting applications for area service providers. He also noted that the Live Oak School District will not be renewing the agency's lease, which will negatively impact their level of service to the community.
CM Jett announced that the Youth Action Network Leaders Unite 4 Youth workshop will be March 29 from 11:00 AM to 3:00 PM and is geared towards people aged 14 through 18.
CM Lind attended a Santa Cruz Metropolitan Transit District (METRO) finance board meeting where they authorized the Chief Executive Officer (CEO) to enter into a shortterm line of credit.
CM Lind attended the Criminal Justice Council Board of Directors meeting and they approved the final report (year 4) regarding behavioral health services in the county.
CM Lind attended the Chamber of Commerce Ambassadors meeting where they continued to plan the Hitchcock Festival and the Chamber Gala.
Mayor Timm, along with City Manager LaGoe, participated in the onboarding process with Central Coast Community Energy (3CE).
Mayor Timm, along with VM Timms, City Manager LaGoe, and Director Hill, attended the Budget Subcommittee meeting where they reviewed the budget guiding principles and discussed the future meeting schedule.
City Council Meeting Minutes
Date: February 19, 2025
CITY MANAGER REPORT
PUBLIC COMMENT TIME
Mayor Timm attended the Association of Monterey Bay Area Governments (AMBAG) meeting where he was appointed to serve as president. They reviewed the 2025 Coordinated Public Transit-Human Services Transportation Plan development process and the 2050 Metropolitan Transportation Plan/Sustainable Communities Strategy.
Storm Response: City Manager LaGoe thanked all staff who helped with storm preparations (vacuuming storm drains, trimming trees, etc.) as it truly made a difference during the recent atmospheric river event. Unfortunately, some concerning issues arose at the Wastewater Treatment Plant due to stormwater infiltration into the plant, and we also experienced leaks in some of the City buildings.
Summer Event Planning: This subject was discussed during the City Council Workshop earlier this month and our Recreation Division Manager has reached out to the event organizers for the signature events to determine how we can expand the event use into the new Town Center area to reduce the wear and tear on the fields.
We truly appreciate everyone's creativity and flexibility as we move forward with this exciting plan. This subject is also on the agenda for the Parks and Recreation Commission meeting on Thursday, February 20.
Central Coast Community Energy (3CE) Operations Board: City Manager LaGoe was sworn in as a director on the 3CE Operations Board, which is a rotating seat with Capitola every two years. Mayor Timm has taken a seat on the Policy Board. At the first meeting of the Operations Board, they discussed power procurement contracts, renewable energy goals, and the fire at Moss Landing, which prompted a discussion of the safety issues and challenges of battery storage facilities. 4444 Scotts Valley Drive Project: Last week City staff sent an approval letter to the housing project at 4444 Scotts Valley Drive. This project consists of 24 affordable units and one manager’s unit. The City Council previously submitted a letter of funding support for this project, and this site is included in Scotts Valley’s Housing Element.
Community Grant Program: The application deadline for the community grant program is extended to February 27 and includes the autism certification grants for businesses. Both the City and the Chamber of Commerce have performed outreach to local businesses regarding the grant opportunity for autism certification.
Reminder: Follow the City on social media and sign up to receive the City's bi-weekly newsletter!
City Council Meeting Minutes
Date: February 19, 2025
ALTERATIONS TO CONSENT AGENDA
CONSENT AGENDA
PUBLIC HEARINGS
ALTERATIONS TO REGULAR AGENDA
CM Lind announced that the Fallen Officers Ball will be held this Saturday, February 22, at the Coconut Grove in Santa Cruz.
Evan Siroky provided public comment on Consent Agenda Item 3 - 2025 Legislative Platform - and he noted his opposition to the local control item.
M/S: Lind/Clark
To approve the Consent Agenda with the inclusion of the public comment.
Carried 4/0/1 (AYES: Timm, Clark, Jett, Lind; NOES: None; ABSENT: Timms)
1. Approve City Council minutes of 02-05-2025 and Special Study Session minutes of 02-06-2025 & 02-07-2025
2. Approve check register dated 02-01-2025 through 02-14-2025
3. 2025 Legislative Platform
4. Biannual Strategic Goals for FY25/26 through FY26/27
5. Establish a Temporary Project Specific City Facilities Subcommittee
6. Appointment to the Measure Q Citizens Oversight Advisory Board (COAB)
1. Consideration of the Planning Commission's recommendation of approval of a Minor Land Division Application to subdivide an existing ±24,068 square foot parcel into two parcels in the R-1-10 Zoning District.
Senior Planner Sarah Wikle presented this item and responded to questions from the Council.
Mayor Timm opened the public hearing at 6:36 PM. No members of the public came forward to comment and Mayor Timm closed the public hearing at 6:36 PM.
M/S: Lind/Clark
To approve Minor Land Division No. MLD23-002 and EA23-006 by adoption of Resolution No. 2060.
Carried 4/0/1 (AYES: Timm, Clark, Jett, Lind; NOES: None; ABSENT: Timms)
City Council Meeting Minutes
Date: February 19, 2025
REGULAR AGENDA
CLOSED SESSION SUBJECT(S)
RECONVENE TO OPEN SESSION
REPORT ON ACTION TAKEN DURING CLOSED SESSION
ADJOURNMENT
There were no alterations to the Regular Agenda, however, City Manager LaGoe announced an alteration to the Closed Session. The Closed Session is no longer needed and is therefore cancelled.
1. Future Council Agenda Items
None.
Closed session cancelled.
1. Conference with Legal Counsel - Existing Litigation
Legal Authority: Government Code Section 54956.9
Number of Cases: 1 Case
Name of Case: Service Employees International Union Local 521 v. City of Scotts Valley, Public Employee Relations Board Case No. SF-CE-2172-M Staff Present: City Attorney, Administrative Services Director, Labor Counsel Closed session cancelled.
Closed session cancelled.
The meeting adjourned at 6:38 PM.
Attest:
Cathie Simonovich, City Clerk
Approved:
Derek Timm, Mayor
CONVENE TO CLOSED SESSION
apadatecr2 City of Scotts Valley llambert 02/28/2025 12:03 Page 1 A/P Check Register Checks from 02/15/2025 to 02/28/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type Cash Account: 999-10100-000-000-000000
133441 02/21/25 ACCENT CLEAN & SWEEP INC 5,478.00 O Regular 133442 02/21/25 ACE PORTABLE SERVICES 750.24 O Payment Manager133443 02/21/25 ALVAREZ IND INC CLEAN BLDG 1,950.00 O Regular133444 02/21/25 AMANDA ARMSTRONG 133.49 O Regular133445 02/21/25 AT&T 87.48 O Regular133446 02/21/25 AT&T MOBILITY 1,555.86 O Regular133447 02/21/25 BRINKS AWARDS & SIGNS 54.87 O Regular 133448 02/21/25 BRISHAN INC. 1,975.10 O Regular133449 02/21/25 BUSINESS WITH PLEASURE 175.60 O Regular133450 02/21/25 CENTRAL COAST SYSTEMS 465.00 O Regular133451 02/21/25 CHAD PRICE 2,400.00 O Regular133452 02/21/25 COMCAST 754.96 O Payment Manager133453 02/21/25 CRYSTAL SPRINGS WATER CO 19.00 O Regular133454 02/21/25 CUMMING MANGEMENT GROUP, INC 787.50 O Regular133455 02/21/25 DAWN BANKS 82.40 O Regular133456 02/21/25 ENVIRONMENTAL INNOVATIONS 7,730.00 O Regular133457 02/21/25 GOOD CITY COMPANY 4,439.00 O Regular133458 02/21/25 GRANITE CONSTRUCTION CO 601.82 O Regular133459 02/21/25 IBCCES 4,339.00 O Regular133460 02/21/25 INTERSTATE SALES 2,427.41 O Regular133461 02/21/25 KENNEDY-JENKS CONSULTANTS 65,721.59 O Regular133462 02/21/25 L & M FIRE PROTECTION 1,440.00 O Regular133463 02/21/25 LOGAN & POWELL, LLP 29.00 O Regular133464 02/21/25 M-GROUP 6,975.00 O Regular133465 02/21/25 MARY LOUISE DEFALCO 92.00 O Regular133466 02/21/25 MCCAMPBELL ANALYTICAL, INC. 508.00 O Regular133467 02/21/25 MONTEREY REGIONAL 13,983.60 O Payment Manager133468 02/21/25 NBS GOVERNMENT FINANCE GROUP 6,616.64 O Regular133469 02/21/25 NCH CORPORATION 1,426.75 O Regular133470 02/21/25 NORTH CENTRAL LABORATORIES 982.45 O Payment Manager133471 02/21/25 PALACE BUSINESS SOLUTIONS 111.87 O Regular133472 02/21/25 PHENOVA 1,782.58 O Regular133473 02/21/25 PHILLIP D NEUMAN 1,444.83 O Regular133474 02/21/25 S.V. WATER DISTRICT - BULK 170.80 O Regular133475 02/21/25 SANTA CRUZ COUNTY CONFERENCE 22,360.44 O Regular133476 02/21/25 SANTA CRUZ SENTINEL 212.80 O Payment Manager133477 02/21/25 STERICYCLE INC 248.21 O Regular133478 02/21/25 STEVE CLARK 947.58 O Regular133479 02/21/25 SUMMIT UNIFORMS 52.50 O Regular133480 02/21/25 SYCAL ENGINEERING INC 201.00 O Regular133481 02/21/25 TELECOMMUNICATIONS 19,998.72 O Regular133482 02/21/25 THOMSON REUTERS-WEST 396.48 O Payment Manager133483 02/21/25 U.S. BANK CORPORATE 10,495.88 O Regular133484 02/21/25 VERIZON WIRELESS 178.76 O Regular
apadatecr2 City of Scotts Valley llambert 02/28/2025 12:03 Page 2 A/P Check Register Checks from 02/15/2025 to 02/28/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type133485 02/21/25 WATSONVILLE DIESEL 1,296.95 O Payment Manager133486 02/21/25 WIZIX TECHNOLOGY GROUP, INC 818.55 O Payment Manager133487 02/28/25 ACC BUSINESS 1,830.64 O Payment Manager133488 02/28/25 AFLAC-FLEX ONE 586.71 O Regular133489 02/28/25 ALFA LAVAL INC. 9,336.94 O Regular133490 02/28/25 ALHAMBRA 293.18 O Regular133491 02/28/25 ALVAREZ IND INC CLEAN BLDG 256.00 O Regular133492 02/28/25 AMAZON CAPITAL SERVICES 182.29 O Regular133493 02/28/25 AUTO CARE LIFESAVER TOWING 594.00 O Regular133494 02/28/25 BELLOWS PLUMBING HEATING & AIR 389.00 O Regular133495 02/28/25 CALIFORNIA DEPARTMENT OF 14,446.00 O Regular133496 02/28/25 COMPUTERSMITHS LLC 1,870.00 O Regular133497 02/28/25 CSG CONSULTANTS, INC 70,018.20 O Regular133498 02/28/25 DU-ALL SAFETY, LLC 3,450.00 O Payment Manager133499 02/28/25 FEDERAL EXPRESS 204.39 O Regular133500 02/28/25 FERNANDO MENDOZA 576.78 O Regular133501 02/28/25 GRAINGER 263.70 O Regular133502 02/28/25 HERWIT ENGINEERING 20,976.50 O Regular133503 02/28/25 KARRIYMA PEKARY 250.00 O Regular133504 02/28/25 L & M FIRE PROTECTION 1,550.00 O Regular133505 02/28/25 LIEBERT CASSIDY WHITMORE 2,827.00 O Regular133506 02/28/25 MBASIA 10,003.80 O Regular133507 02/28/25 MISSION COMMUNICATIONS, LLC 2,879.60 O Payment Manager133508 02/28/25 MISSION UNIFORM SERVICE 576.40 O Payment Manager133509 02/28/25 MUTUAL OF OMAHA 1,339.23 O Regular133510 02/28/25 OLIN CORPORATION AS SOLE 4,984.14 O Regular133511 02/28/25 PETERSON POWER SYSTEMS, INC. 6,898.48 O Regular133512 02/28/25 PHILLIP D NEUMAN 4,416.76 O Regular133513 02/28/25 PRINICPAL LIFE INSURANCE CO 8,233.51 O Regular133514 02/28/25 S.V. WATER DISTRICT 7,340.84 O Regular133515 02/28/25 SANTA CRUZ COUNTY CONFERENCE 5,621.42 O Regular133516 02/28/25 SARAH ORRE 690.00 O Regular133517 02/28/25 SCARBOROUGH LUMBER 1,132.95 O Regular133518 02/28/25 SCOTTS VALLEY SPRINKLER 195.30 O Regular133519 02/28/25 STANDARD INSURANCE COMPANY 1,038.84 O Regular133520 02/28/25 STATE WATER RESOURCES CONTROL 169.00 O Regular133521 02/28/25 SWEDBERG ELECTRIC INC. 1,400.00 O Regular133522 02/28/25 SYCAL ENGINEERING INC 23,038.12 O Regular133523 02/28/25 TORO PETROLEUM CORP 6,284.38 O Regular133524 02/28/25 WAGE WORKS 125.00 O Regular133525 02/28/25 WALD RUHNKE & DOST ARCHITECTS 9,900.00 O Regular133526 02/28/25 WEX BANK 8,379.90 O Regular
apadatecr2 City of Scotts Valley llambert 02/28/2025 12:03 Page 3 A/P Check Register Checks from 02/15/2025 to 02/28/2025
74 Checks total: 401,316.04
0 ACH total:0 EFTPS total:0 Wire transfer total:
12 Payment Manager total: 27,932.6786 GRAND TOTALS 429,248.71
AGENDA ITEM 1.
DATE: 3/5/2025
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 3/5/2025
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Guiding Budget Principles for Fiscal Year 2025-26
SUMMARY OF ISSUE
Each year, the City Council provides crucial guidance to the City Manager in preparing the annual budget for the upcoming fiscal year. This practice, widely adopted by local governments, serves as a vital framework for guiding staff in the development of a comprehensive budget. It not only directs the allocation of resources but also provides a clear basis for assessing and evaluating the various budget proposals that will be included in the proposed budget.
As part of this process, the Budget Subcommittee, in collaboration with staff, has reviewed and refined the Fiscal Year 2025-26 Guiding Budget Principles. These principles will play a key role in shaping the preparation of the annual budget, ensuring that it aligns with the City's long-term goals and priorities. Additionally, they will provide the foundation for evaluating the proposed budget when it is presented to the City Council for review and discussion during the public hearing in June. This updated approach ensures that the budget process remains transparent, strategic, and reflective of the community's needs and priorities. See Exhibit A.
The following milestones are presented as placeholders in preparing and adopting the City’s FY 2025-26 Annual Budget:
Date/Month Meeting Forum Activity
February City Council Workshop Establishing Strategic Goals February Budget Subcommittee Review Guiding Principles, goals, calendar Feb. - April Internal Staff Preparation of draft budgets April - May Budget Subcommittee 3 - 4 meetings to review draft budgets May 15th Planning Commission Present capital budget for consistency with the General Plan
May 21st Regular Council Meeting Preliminary FY2025-26 Budget presentation
June 4th Regular Council Meeting FY 2025-26 Budget Adoption
FISCAL IMPACT
There is no fiscal impact as a result of adopting Guiding Budget Principles and providing direction to the City Manager for the preparation of the FY 2025-26 Annual Budget.
STAFF RECOMMENDATION
It is recommended that the City Council approve Resolution No. 630.45 Adopting Guiding Budget Principles for use in preparing the FY 2025-26 Annual Budget.
TABLE OF CONTENTS
1. Res. 630.45 FY25-26 Guiding Budget Principles
2. Exhibit A Adopted Guiding Budget Principles FY2526
RESOLUTION NO. 630.45
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY
ADOPTING GUIDING BUDGET PRINCIPLES AND BUDGET CALENDAR
FOR FISCAL YEAR 2025-26
WHEREAS, the City of Scotts Valley is developing the annual budget for Fiscal Year (FY) 2025-26, with Guiding Budget Principles being integral resources fundamental to the annual budget development process; and
WHEREAS, adoption of the annual budget is an integral part of the City’s strategic planning and management functions, as it assigns scarce resources to the programs and services provided to the community and ultimately reflects the mission and values of the organization as well as ensuring the long-term fiscal sustainability of City operations; and WHEREAS, to anchor good financial planning, focus budget preparation, support fiscal sustainability and linkage to organizational goals, a set of guiding budget principles were prepared, drawn from state and national best practices; and WHEREAS, the Guiding Budget Principles provide principles for numerous policy areas including the following: budgeting, fund balance/reserves, fiscal sustainability planning, ongoing resources and operations, use of one-time resources, capital project budgeting, debt management, and other financial matters; and
WHEREAS, such principles are consistent with the City’s strategic plans and priorities and will support the long-term health of the organization.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED as follows:
The City Council of the City of Scotts Valley hereby adopts the attached FY 2025-26 Guiding Budget Principles to be used in preparation of the City’s annual budget.
The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a meeting held on the 5th day of March 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Approved:
Derek Timm, Mayor
Attest:
Cathie Simonovich, City Clerk
Exhibit A
City of Scotts Valley
Guiding Budget Principles
for FY 2025/26 Annual Budget
City Council establishes a set of budget principles to guide current and future policy makers and staff to ensure the long-term financial sustainability of the City. The budget principles that are listed below were approved by the City to guide the planning for the FY25/26 Annual Budget.
Budgeting Policies
1. Budget development will be guided by a long-term financial plan proposed by the City Manager and adopted by the City Council and should include considerations such as the cost of deferred maintenance and unfunded liabilities.
2. The budget must be balanced. Specifically, revenue must be equal to or greater than expenses. The total expenses of a department in the new fiscal year will be their expenses from the current fiscal year as modified by MOU changes and minor increases in services and supplies to the extent resources allow. All departments are expected to review their sources of revenue for correctness and validity. All departments are expected to evaluate the impact of uncertainties on revenues and adjust expenditures accordingly.
3. There will be no unfunded positions included in the budget or staffing resolution.
Vacancy Review will be utilized to create budget flexibility in case of loss of revenue, and to ensure the need exists for filling positions. All positions will be reviewed. Any new positions will consider: new revenue for the position to cover the cost of the position and indirect and overhead costs; the need for the position to meet Council Goals; and a reasonable expectation that there will be an ongoing funding stream for any new position.
4. The budget will only use reserve funds for emergencies and one-time expenditures or for purposes that the reserve is designated to fund. Every effort will be used to preserve reserve funds at designated levels.
5. The City Manager is authorized to approve administrative adjustments to the adopted budget or reallocate appropriations among departments or divisions within a fund, as long as those changes do not significantly impact policy or affect budgeted year-end fund balances. Any revisions that increase total appropriations in any given fund must be approved by the City Council.
Reserve Policies
6. General Fund reserves should be maintained at a minimum of 17% (or two months) of annual operating expenditures, excluding one-time expenditures, with
Exhibit A
a target reserve goal of 25% (three months) of annual operating expenditures. If the reserve is expected to be below 17%, a remedy plan should be discussed in the fiscal sustainability planning process.
7. Funding assignments in the General Fund will be used to plan for current and future needs including pension contributions, facility planning, IT infrastructure, economic development activities, economic uncertainty, and general purpose.
These assignments reflect the Council’s Goals and intent to plan for future investments but are not restricting their assigned use and can be modified as needed to meet the City’s needs.
8. The General Capital Improvement Fund should maintain a targeted minimum reserve equal to $500,000 for emergency capital infrastructure replacement needs not funded by other sources.
9. Wastewater Operations Enterprise Fund should maintain a minimum of 50% (or six months) of annual operating expenditures to meet cash flow needs, plus a $1 million emergency reserve for emergency capital infrastructure replacement, both of which would be incorporated in the Wastewater rate model to plan for future wastewater service rates.
Ongoing Resources and Operations
10.Ongoing expenditures should be supported by ongoing revenues.
11.The City will seek to avoid dependence on temporary or unstable revenues to fund mainstream municipal services where possible.
12.Charges for services should maximize recovery of the full cost of related services, including direct operating costs, and other indirect costs such as capital and overhead costs.
13.Recreation like activities will follow the City’s cost recovery goals based on the beneficiary of service scope. Recreation services need to meet reasonable cost recovery to limit the subsidy provided by the General Fund.
Use of One-Time (Windfall) Resources
14.One-time revenues will not be used for ongoing expenditures on a continuous basis.
15.Unpredictable revenues, such as those derived from the sale of surplus land assets or inventory, will be treated as one-time revenue and will not be used to support ongoing expenses.
16.One-time resources may only be used to support one-time expenses such as capital investments or to replenish reserves.
Exhibit A
Capital Projects
17.When capital projects are considered, all associated costs - including annual operating expenses, debt services, and any additional future costs - will be identified to properly assess future financial impacts.
18.Investment in technology will continue.
Fiscal Sustainability Planning
19.The long-range financial forecast will incorporate reasonable future needs and assumptions based on past trends and likely scenarios. If the forecast reveals a structural gap between projected revenues and expenditures, the City will adjust the forecast to include expenditure reduction scenarios to address the gap. These options will be clearly presented during the budget process to help determine whether the existing fiscal sustainability plan should be updated or a new one developed, ensuring that the General Fund reserves remain within the policies established by the City Council.
20.Any structural gap in a long-term financial forecast will be addressed during the budget process with clear, actionable decision points to ensure it is mitigated within 10 years.
21.Service level reductions will be implemented if other strategies are not possible or cannot be achieved in a timely fashion.
22.There will be a high level of fiscal discipline by the Department Heads, Budget Subcommittee, City Manager and City Council. Every effort will be made to maximize City assets, achieve a high level of funding for employee retirement promises, evaluate cost per service item and develop and maintain contracts with vendors within Scotts Valley.
Debt Management
23.Debt will not be used to support ongoing operations.
24.Capital leases may be used as a mid-term borrowing arrangement for fleet, equipment, and technology to the extent that the imputed interest rate in any such capital lease is competitive with existing long-term borrowing rates, considers potential maintenance cost savings for assets under the capital lease, and that such costs are incorporated into the long-range financial forecast.
25.Long-term borrowing (three years or more) for capital facilities will be considered as an appropriate method of financial facilities that benefits more than one generation of users and to the extent that existing reserves or other one-time resources are not available.
Exhibit A
Other Matters
26.The Wastewater Enterprise fund shall reflect the true cost of operation, including direct and indirect costs of services provided by the General Fund, and be selfreliant upon fees and/or use rates paid by ratepayers.
27.Private development of residential, commercial and/or industrial properties shall pay its fair share of capital improvements that are necessary to serve the development.
28.If the City contributes funds to Non-Profit or Community Partners for other than the purchase of services, it will give priority to one-time initiatives (as opposed to operational subsidies), and to those who demonstrate collaboration with other Community Partners. Funding will be adjusted based upon discretionary revenues available as with other City departments. Loans and advances will not be considered unless extraordinary events occur and must be secured.