I. CALL TO ORDER
II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. ADDITIONS/MODIFICATIONS TO THE AGENDA
V. PUBLC COMMENT
CITY OF SOLEDAD
JOINT CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AND SUCCESSOR
HOUSING AGENCY SPECIAL MEETING AGENDA
WEDNESDAY, JUNE 11, 2025
CITY HALL, COUNCIL CHAMBERS
6:00 PM
https://cityofsoledad.zoom.us/j/89545085537
Or Call: 1-669-900-6833
Meeting ID: 895 4508 5537
Welcome to your City of Soledad City Council/Successor Agency Meeting. Your City Councilmembers/Agencymembers are:
Mayor Anna Velazquez
Mayor Pro Tem Fernando Cabrera
Councilmember Fernando Ansaldo-Sanchez
Councilmember Evarista Banuelos
Councilmember Ben Caldera
Items of business may be added to the agenda upon a motion adopted by a minimum 2/3 vote finding that there is a need to take immediate action and that the need for action came to the attention of the City subsequent to the agenda being posted. Items may be deleted from the agenda upon request of staff or upon action of the Council.
At this time any member of the public may address the City Council on items not appearing on the agenda and items of interest to the public that are within the jurisdiction of the Council. A public comment card should be filled out completely to ensure the speaker is called upon to give comment. Public comments are generally limited to three (3) minutes; the mayor may further limit the time for public comments depending on the agenda schedule. Please be brief and to the point. 1 BUDGET WORKSHOP
1 VI. BUSINESS
1. Receive a Presentation on the City of Soledad's 2025-2026 Budget VII. ADJOURNMENT
No action or discussion shall be taken on an item not appearing on the agenda.
Attachments:
Staff Report
Exhibit A - FY 2025-2026 Budget and Capital Improvement Program COUNCIL ACTION: ________________________________
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact Deputy City Clerk Darlene Noriega at (831) 223-5014. Notification of at least 48hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (RCRF 35.102-35.104).
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 248 Main Street, Soledad, California during normal business hours.
En caso que usted necesite ayuda en leer o en entender este aviso de Junta Publica, usted puede ponerse en contacto con la oficina del Edificio Municipal en 248 Calle Main o llamar al número (831) 223-5014, y el aviso será traducido para usted.
Cualquier escrito o documento proporcionado a la mayoría del Concejo Municipal con respecto a cualquier asunto en esta agenda se pondrá a disposición para inspección pública en el Ayuntamiento ubicado en 248 Main Street, Soledad, California durante el horario laboral.
Advanced submittal of public comments via email are due by 2:00 P.M. on the day of the scheduled meeting to the Deputy City Clerk at [email protected] Comments are limited to 250 words or less and effort will be made to read your comment into the record, but some comments may not be read due to time limitations. The City Clerk will read email comments, provided that the reading shall not exceed three (3) minutes. The email comments submitted shall become part of the record.
La entrega anticipada de comentarios públicos por correo electrónico debe presentarse antes de las 2:00 p.m. del día de la reunión programada a la Secretaria Municipal al email [email protected]. Los comentarios están limitados a 250 palabras o menos y se hará un esfuerzo para leer su comentario en el registro, pero es posible que algunos comentarios no se lean debido a limitaciones de tiempo. La Secretaria Municipal leerá los comentarios del correo electrónico, siempre que la lectura no exceda los tres (3) minutos. Los comentarios enviados por correo electrónico pasarán a formar parte del registro.
.
2 2
06/10/2025
CERTIFICATION
I, Megan Hunter, City Clerk of the City of Soledad, do hereby certify that a copy of the foregoing Joint City Council/Successor Agency Special Meeting Agenda was posted at City Hall by Tuesday, June 10, 2025, at 5:00 p.m.
Megan Hunter, City Clerk/Manager
3 SUBJECT: Receive a Presentation on the City of Soledad's 2025-2026 Budget TO: Honorable Mayor Velazquez and City Council
FROM: Mike Howard, Finance Director
MEETING DATE: June 11, 2025
CITY OF SOLEDAD
STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.
Recommendation
It is recommended that the City Council of the City of Soledad receive the presentation and provide direction to staff on the 2025-2026 Fiscal Year Budget and related budget actions.
Executive Summary
The City’s FY 2025-2026 proposed budget maintains current service levels with a Status Quo approach, reflecting minimal changes from the previous year. Due to rising costs—particularly for Fire Department staffing—the General Fund faces a $510,541 shortfall, to be covered by the Operating Reserve.
Key Highlights:
Personnel:Two positions are reclassified to improve permitting efficiency.
Enterprise & Special Revenue Funds: Allocated strictly for designated uses, including water and wastewater systems, in line with the 2021 Rate Study.
Reserves:The City maintains healthy reserves in both Operating and Capital Funds.
Revenue Outlook: Staff is exploring new revenue options, including a potential Parcel Tax for Fire Servicesin FY 2026-2027
Background
The City is preparing its FY 2025-2026 program and financial plan amid ongoing revenue challenges. With key sources like sales tax expected to remain flat, staff has proposed a Status Quo budget. To balance the General Fund, $510,541 will be drawn from the operating reserve. Enterprise Funds and the Successor Agency budget are included, in line with state requirements.
In FY 2024-2025, the City sold three parcels to the Soledad School District for teacher housing, generating $132,715. Staff recommends transferring these funds to the Successor Housing Fund to support future affordable housing. Once transferred, the funds cannot revert to the General Fund. 4 Review & Analysis
Despite flat revenues—especially in sales tax—expenditures continue to grow, driven by staffing, insurance, and infrastructure needs. Total General Fund revenues are projected at $15.1M, with expenditures at $15.6M, necessitating the reserve drawdown. Capital reserves are projected at $7.3M by year-end.
Special Tax Measures
Measure Y (1% sales tax, extended to 2032) provides 16% of General Fund revenues, projected at $2.4M, supporting police (56%) and fire (43%). The oversight committee did not meet due to quorum issues. Measure S (0.5% sales tax, permanent) contributes 8% of General Fund revenues, with $1.2M projected. Funds support Parks, Recreation, Animal Services, and Community Engagement.
Fund Summaries
Water Fund: Projects a $246K deficit, including $1.6M in capital improvements ($467K grantfunded). Wastewater Fund:Expects a $3.4M deficit, mostly due to capital projects funded by reserves.
Solid Waste Fund: Balanced. Franchise fee revenue continues to be transferred to the General Fund.
Additional Budget Actions
Staff proposes allocating $132,715 from the sale of City land to the Successor Housing Fund for future low-income housing, aligning with state guidelines. A mid-year budget review will reevaluate financial conditions and potential adjustments.
This budget is a “Status Quo” budget, with strategic issues on the horizon as the City aims for fiscal stability amidst growth. A key concern is the increase from PERS affecting all jurisdictions. The City must negotiate a CAL FIRE contract for FY 2025-2026, having only secured a one-year agreement, while we seek ongoing funding for fire department staffing.
Financial Considerations
As indicated in the attached budget documents, the General Fund, as presented in the proposed budget, is balanced for FY 2025-2026.
Alternatives
Provide other direction to Staff.
Planning/CEQA
Adoption of the FY 2025-2026 Budget is not considered a project for the purposes of CEQA since it has no potential for resulting in either a direct or indirect impact to the environment. (See CEQA Guidelines Section 15378.)
Public Notice Requirements
None.
5 Exhibit A - FY 2025-2026 Budget and Capital Improvement Program Attachment(s):
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
56 57
58 59
60 61
62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 93
94 95
96 97
98 99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267