To complete this study, Citygate interviewed 10 management staff and reviewed applicable documents. Citygate finds the City has either completed or is currently completing 90 percent of the 30 recommended Tier 1 priorities. Staff also initiated four Tier 1 priorities that were identified by Council but not part of the 30 Citygate-recommended priorities. This level of achievement illustrates the dedication of City staff even under less-than-ideal circumstance. Staff continues to experience workload issues as a result of the lack of adequate staffing. Though the City has added FTEs since the previous Citygate report, staff levels remain approximately 19 percent below that of 2007. Despite this situation, Citygate cautions the City regarding hiring additional staff, which represents an on-going expense and should be carefully evaluated to ensure that the City’s longterm fiscal sustainability remains intact. FY 25/26 General Fund revenue estimates have declined approximately $1.2 million since FY 23/24 primarily due to losing three significant retail businesses (sales tax revenues). In addition, City staff has determined that the backlog for capital and infrastructure improvements totals approximately $75 million. As an example, per a pavement condition assessment completed by the City in July 2024, almost eighty percent of the City’s streets and roads have a remaining service life of 6 years or less. Compounding these situations are the general economic uncertainties resulting from Federal tariffs and other Federal policies that could impact the State and City fiscal condition. Situations such as these require prudent action, such as maximizing reserve set-asides, to maintain fiscal stability. Citygate thus concurs with City management establishing new reserve levels. Per City staff, estimated General Fund reserves as of the end of FY 24/25 totaled approximately $12.2 million consisting mostly of reserves to address future impacts of labor agreements with the five labor groups (next five years), meet reserve policy requirements, and other reserves assigned to address future operational needs, leaving approximately $1.6 million as unassigned. City staff recommended that this $1.6 million be used to assist in addressing supplemental budget requests of City departments. Citygate also concurs with the staff recommendation to maintain a status-quo budget for FY 25/26 and review its fiscal situation at mid-year to determine what, if any, adjustments can be made.
Although Measure Y provides significant funding for the City to address some of its operational shortfalls, it alone will not address all of the fiscal issues the City faces. The City should continue to explore other potential sources of revenue and cost saving efficiencies.
TIER 1 PRIORITIES STATUS
As reflected in the following table, the revised estimated amount of Measure Y funds already spent or allocated to be spent for the recommended Tier 1 priorities totals approximately $2.6 million, which is slightly above original estimates. The City also spent or has allocated approximately $359,000 of other City funds for Tier 1 priorities.
316
Item A.
Melissa Eads
July 3, 2025
Table 1—Tier 1 Priorities Activity Recap
Recap
One-Time
Total Revised Resources Needed $1,608,500
Measure Y Resources Allocated/Spent $1,523,500
Other City Funds Allocated/Spent $85,000
Balance $0
On-Going
Total Revised Resources Needed $1,340,950
Measure Y Resources Allocated/Spent $1,066,950
Other City Funds Allocated/Spent $274,000
Balance $0
Totals
Total Measure Y Allocated/Spent on Tier 1 Priorities $2,590,450 Total Other City Funds Allocated/Spent on Tier 1 Priorities $359,000 Total Allocated/Spent on Tier 1 Priorities $2,949,450
Details regarding the status of the Tier 1 priorities are provided in Appendix A.
HIGH-LEVEL FISCAL UPDATE
The following table presents the City’s five-year General Fund forecast as produced by City staff.
The FY 24/25 unassigned fund balance, per City staff, includes a change in the reserve allocation methodology.
Table 2—Projected General Fund Operating Results
Fiscal Component FY 23/24
Actual
FY 24/25
Projected
FY 25/26
Proposed
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
FY 29/30
Projected
Revenues
Taxes 11,523,083 10,946,300 9,504,200 9,515,000 9,633,020 9,728,650 9,798,290 All Other 4,845,064 3,736,400 4,858,940 4,830,600 4,845,500 4,792,810 4,822,720 Total Revenues 16,368,147 14,682,700 14,363,140 14,345,600 14,478,520 14,521,460 14,621,010 Expenditures
Pre Strategic Plan 11,696,416 13,760,750 11,973,725 12,425,500 12,786,500 13,350,200 13,521,500 Total Expenditures 11,696,416 13,760,750 11,950,225 12,425,500 12,786,500 13,350,200 13,521,500 Net Operating Income/(Loss) 4,671,731 921,950 2,389,415 1,920,100 1,692,020 1,171,260 1,099,510 Ending Unassigned Fund Balance 9,731,628 12,154,317 14,543,732 16,463,832 18,155,852 19,327,112 20,426,622 317
Item A.
Melissa Eads
July 3, 2025
The operating surpluses shown in the previous table do not reflect General Fund amounts that will be needed to maintain reserves, address potential economic downturns, address capital infrastructure needs, and other Tier 2 and Tier 3 priorities.
Given fiscal uncertainties, all Tier 2 priorities listed in the Strategic and Implementation Plan requiring an expenditure in FY 25/26 should be carefully reviewed and adjusted where necessary based on fiscal conditions.
The following figure illustrates the revenue, expenditure, and operating results over the last six fiscal years and the projected amounts through FY 29/30. The spike between FY 22/23 and FY 23/24 represents a full year of Measure Y receipts.
Figure 1—General Fund Revenues and Expenditures
Measure Y represents a significant increase in revenue and Citygate recommends the City develop a dashboard reflecting Measure Y collections and usage that is readily available to the public. Also, the City should increase its marketing of the use of Measure Y funds through signage and other means to ensure that the public is aware of projects for which Measure Y funds are used.
An option available to the City to address capital project needs, such as public facilities construction/renovation and infrastructure, is through the issuance of debt. This allows the City to leverage identified revenue streams, such as Measure Y funds, to complete needed capital projects sooner than would be the case when waiting for the cash to accumulate. Citygate, as suggested in 318
Item A.
Melissa Eads
July 3, 2025
Citygate’s previous report, recommends that the City review this option to address immediate capital and infrastructure needs where funds are not currently available.
ACCOMPLISHMENTS
Based on staff reports during the budget workshop, staff has an impressive number of accomplishments since Citygate’s report. Although the following bullets reflect many of the key accomplishments within each department or function, they do not represent all of them.
Administration
Assumed some administrative duties for the County Local Agency Formation Commission (LAFCO)
Allocated and funded CalPERS unfunded liability first year contribution to help reduce impact of pension costs
Reclassified the Administrative Services Director to Assistant City Administrator to help improve management efficiency and succession planning Consolidated City Clerk and Human Resources Director responsibilities to improve operational efficiencies and provide cost savings
Negotiated a 2 percent reduction in sales tax share with the County Updated reserve and investment policies to conform with best practice Changed auditor to conform with best practice and continued to receive unqualified auditor opinion on Annual Comprehensive Financial Report (ACFR) Audited cannabis dispensaries to ensure compliance with City regulations Completed internal fee study on some of the fees (comprehensive fee study is still needed)
Expanded fleet program to include Public Works Department vehicles Completed and implemented Citywide compensation study Negotiated five-year labor agreements with three of five labor groups 319
Item A.
Melissa Eads
July 3, 2025
Community Development
Hired a code enforcement official part-time (two days) to improve inspections for code regulations
Implemented iWorQ online permitting software (fully implemented for the Building Department, the code enforcement function, the business licensing function, and nearly implemented for the Public Works Department pavement and signage functions)
Updated the short-term rental ordinance addressing approximately 40 properties Completed the majority of the fee study
Set aside $300,000 as an initial reserve for the General Plan Completed the shopping cart ordinance with code enforcement staff to support it Completed the locals first program in coordination with the Economic Development Department
Completed four Citywide events
Completed Emergency Operations Plan pending adoption
Completed new CALFIRE maps
Completed many projects, some of which include:
➢ Expanding Farmers’ Market (Stewart Street with art, crosswalks, trash cans, and shade structures)
➢ Pickle Ball Court at Woods Creek Rotary Park
Entered into partnership with Habitat for Humanity for a four-unit residential complex project on Stewart Street and is writing a $1 million CDBG grant Writing a Request for Proposal (RFP) to identify new potential waste management services
Working on a cannabis distribution ordinance
Working on a vacant property registration program
320
Item A.
Melissa Eads
July 3, 2025
Public Safety
Made big strides for many elements of the police facilities assessment Completed repeater project/upgrade
Purchased new rifles
Completed mobile and car radios upgrade
Completed cleaning and clearing of High Fire Severity Zone Updated Computer Aided Dispatch (CAD) system
Implemented multifactor authenticators for computers / cell phones Updated workstations
Completed employee wellness center/gym is opening soon Completed the POST Police Management Study
Acquired new leased vehicles
Homelessness
Hired a Homelessness Outreach Coordinator (grant funded) Completed encampment ordinance
Created the Homelessness Outreach Support Team (HOST) to provide a multijurisdictional approach to homelessness issues that are in the field on a monthly basis
Created durable information cards that are distributed to people experiencing homelessness reflecting available assistance options
Public Works
Working on a sidewalk inventory
Working on a pavement database
Terminated prior City Engineer contract and cleaning up files to better administer engineering related files and programs
321
Item A.
Melissa Eads
July 3, 2025
GENERAL OBSERVATIONS
Citygate’s general observations include:
Significant amount (90 percent) of recommended Tier 1 priorities have either been completed or initiated, which is commendable given staffing and other issues Morale has improved since Citygate’s last visit
People feel supported
Training opportunities and funding are available; however, heavy workloads do not allow time for all trainings/certifications/innovation
Team building and appreciation is needed but challenged due to workload High demand, high standards, and sometimes unrealistically high expectations (community, elected officials) do not always align with reality of workloads
REVISED RECOMMENDATIONS
The following is a summary of the revised recommendations identified by applicable department Administration
Recommendation #1: Continue to explore methods to delegate management of public works function to allow City Administrator to
focus on more big-picture issues impacting the City.
Recommendation #2: Continue to creativity and significantly enhance marketing and public outreach efforts to inform
community on Measure Y fund updates, items coming
soon, and accomplishments throughout the year.
Recommendation #3: Discuss the priorities list with the City Council given the new financial forecast and make necessary adjustments to the Strategic Plan.
322
Item A.
Melissa Eads
July 3, 2025
Recommendation #4: Assess and eliminate many of the current committees. As a best practice, consider a total of three to five committees with a goal of more effective, efficient, and action-based approaches. Recommend keeping the Planning
Commission, Safety Committee, and the Finance
Committee.
Recommendation #5: Create a new ad hoc, action-based, limited-term committee to support quality of life items, including arts, culture, tourism, shade structures, and the anti-graffiti tools.
Recommendation #6: Ensure that financial forecasting methodology is understood and accepted by the Council to ensure longterm focus on decision making (previously recommended).
Recommendation #7: Develop a dashboard to reflect how Measure Y funds will be used and monitored, and establish a regular update
schedule for access by the public to improve
transparency.
Recommendation #8: Administrative Services Department staff should continue to review GFOA best practices referenced in
Citygate’s Organizational Review and Budget
Stabilization Study and use them as a guide when
enhancing its written policies for the City (previously recommended).
Recommendation #9: The City should formalize the development of performance measures per GFOA best practice as a tool
to gauge operational effectiveness (previously
recommended).
323
Item A.
Melissa Eads
July 3, 2025
Recommendation #10: The City should continue identifying weaknesses in its critical operational areas, particularly in the
Administrative Services Department, and develop a
succession plan, including structured cross-training
and/or reclassifications, to help address unanticipated operational disruption due to loss of staff or other
operational emergencies (previously recommended).
Recommendation #11: The Administrative Services Department should be provided with a supervisory level financial FTE, such as a Lead Accountant or Accounting Manager, to provide a
succession path for the Department and to enhance
separation of duties and internal control. Although listed here as a continuing recommendation, this and any ongoing costs are recommended to be put on hold and evaluated during the mid-year review process due to the current fiscal situation.
Recommendation #12: Revise CIP document to better differentiate between actually anticipated funding sources and what is
anticipated in the five-year fiscal forecast estimates.
Recommendation #13: Revise the reserve policy to better delineate reserve allocation and goals, such as percentages or amounts for:
• Emergencies
• Uncertainties
• Equipment replacement
• Infrastructure and facilities replacement/improvement • Labor
324
Item A.
Melissa Eads
July 3, 2025
Recommendation #14: Reserves should be maximized to guard against an uncertain economy which could impact service levels
given the following factors:
• $1 million loss of sales tax revenues over the last two years (9 percent)
• Recent loss of major retail businesses
• Uncertain Federal tariff impacts
• Labor costs already negotiated in addition to future
negotiations
• Large capital improvement backlog
Recommendation #15: Complete the comprehensive fee review and update it to ensure City is receiving appropriate cost recovery for
non-general services rendered.
Recommendation #16: Develop a matrix to add personnel which identifies criteria for adding FTEs (i.e., economic conditions,
available technology, process improvement capacity,
consulting opportunities, etc.) and present it to the City Council for feedback.
Recommendation #17: Maintain a status quo budget with supplemental requests identified by staff during the budget process; review the supplemental requests mid-year to determine if changes
are warranted.
Public Safety
Recommendation #18: Evaluate the Tier 2 staffing priorities from Citygate’s November 2023 Organizational Review and Budget
Stabilization Study; also evaluate the Police Management Study from August 2024 by Police Officers Standards
and Training (POST).
Recommendation #19: Seek additional grant funding opportunities for areas such as staffing, equipment, and facilities; there may be
potential opportunities in coordination with Economic
Development Department grant identification resources.
325
Item A.
Melissa Eads
July 3, 2025
Community Development
Recommendation #20: Complete a partial update to the Sonora 2020 General Plan and adjust funding set-aside to $300,000, which has already been set aside during FY 24/25 instead of the $1 million goal identified in the five-year Strategic Plan.
Recommendation #21: Utilize current $250k (FY 25/26) General Plan allocation over next two years toward the following:
• Economic Development: Staffing ($25k) – including
potential grant support
• Economic Development: Businesses incentive
programs ($25k)
• Economic Development: New ad hoc (action/delivery
based) art committee ($75k) – supports tourism, antigraffiti tools, arts/culture, and quality of life (for example consider an expansion shade system for Mono Way)
• Community Development: Light internal assessment of
General Plan for critical priority items for a partial update • Community Development: Request for proposal for
General Plan (allocation from the current $300k setaside); target zoning areas for development (growth areas) and land use designation updates as needed,
annexation, sphere of influence, and environmental
impact ($28k)
• Public Works: Re-striping ($72k)
• PIO/Communications ($25k)
Public Works
Recommendation #22: Seek grant funding opportunities to replace the main drain.
Recommendation #23: Review financing options, such as issuance of debt, to leverage existing resources to provide funding for critical infrastructure needs.
326
Item A.
Melissa Eads
July 3, 2025
Table 3—Top Ten Methodologies Used for Implementation and Prioritization Methodology Description
Balanced Approach One size does not fit all. Spread the opportunities, resources, and funding throughout different goals.
Sequential Sense Do not put the cart before the horse. Thoughtfully consider a plan and find efficient approaches to solving various challenges.
Input Considerations Collect extensive and unbiased input from the community, volunteers, staff, and elected officials in a collaborative approach.
Data Collect and analyze relevant data.
Fiscal Care What can be funded and how can it support long-term fiscal stability? Voting Priorities Who was involved and how were the priorities determined? Utilize the voting in an appropriately weighted approach.
RICE Approach
Reach (how many people are impacted by this decision/choice), Impact (how are these people impacted; massively, high, medium, or low), Confidence (gut instincts and awareness to emotionally charged or politically sensitive situations), Effort (what will it take to really accomplish this goal).
Capacity Understand limitations. Work towards appropriately growing capacity to meet the needs.
MoSCow Approach
Determine “Must haves” for survival and safety; “Should haves” for efficient and effective approaches and goals that support priorities and the overall wellness of the community and organization; “Could haves” that will have to wait but are eventually desired; and “Won’t haves” that have no current resource allocation and are a low priority.
Alignment Does the work align with the culture, needs, and vision now and in the future? * * *
Sincerely,
Chad Jackson, MBA
President
cc: Project Team
327
Item A.
.
Appendix A—Tier 1 Priorities Update Page 1
APPENDIX A—TIER 1 PRIORITIES UPDATE
Table 1—Tier 1 Recommended Priorities – One-Time, Non-Recurring Costs – Years 1–2 (Revised) One-Time, Non-Recurring
Costs Cost
Recommendation
# in 5-Year
Strategic Plan
Completed
In Process
Paused
Resources
Needed Notes
Police Department
Evaluation of Airbnb Ordinance
Developing Vacant Property
Registration and Ordinance
$25,000 #17
Completed
In Process
$15,000
Airbnb ordinance evaluation completed;
task force has been created to develop
vacant property ordinance.
Vehicle and Equipment
Replacement Plan (Leasing)
$150,000 #26 Completed $150,000 $75,000 has been set aside to establish a fleet replacement reserve.
Police Equipment (Radio
Repeater / CarCams / Guns /
Technology)
$61,000 #73 Completed $61,000 Included in FY 24/25 budget.
Refresh Dispatch Consoles and
Ensure Radio Interoperability $175,000 #76 Completed $140,500 Included in FY 24/25 budget.
Homelessness Support $75,000 #82–#99
In Process
(#89,#92,#93
Completed)
$75,000 Grant
Although City has made strides toward
this goal, such as hiring a Homelessness
Coordinator and creating the
Homelessness Outreach Support Team,
emphasis and timing will need to be
reevaluated in light of US Supreme Court
decision (Grants Pass) and installation of
new Council members.
Cybersecurity Detection
Assessment $10,000 #119 Completed $10,000 existing budget Upgraded City firewall and financial
system.
328
Item A.
.
Appendix A—Tier 1 Priorities Update Page 2
One-Time, Non-Recurring
Costs Cost
Recommendation
# in 5-Year
Strategic Plan
Completed
In Process
Paused
Resources
Needed Notes
City Manager’s Office
Facilities Assessment and Plan
Police Facilities Assessment $50,000 #25
Facilities
Paused
_________
PD
Completed
Phase 1
$50,000
Police facilities assessment consultant,
design, conference, state legislators all
pending next step due to lack of funding
source.
Social Media / Communication $12,000 #124 Completed $12,000 Has created Facebook page, City Manager’s newsletter.
Public Works
Infrastructure CIP (Capital
Improvement Plan – Roads,
Sidewalks, Curbs, Crosswalks,
Gutters)
$225,000 #24 In Process $360,000
Completed CIP which identified needs
and established a capital improvement
reserve of $215,000. However, City
capital infrastructure needs far exceed
currently identified funding sources.
Pavement Management
Assessment (Initial Startup Cost) $75,000 #28 In Process $75,000 ($5,500
spent to
implement
iWorQ software)
City purchased the iWorQ software
system which includes an asset
inventory module to assist in developing
a pavement management plan.
Public Signs, Decals, and City
Logos Identifying City Workers
and Equipment and Showing
Where all Measure Y Funds are
Being Utilized
$25,000 #112 In Process $25,000 Hired a consultant.
329
Item A.
.
Appendix A—Tier 1 Priorities Update Page 3
One-Time, Non-Recurring
Costs Cost
Recommendation
# in 5-Year
Strategic Plan
Completed
In Process
Paused
Resources
Needed Notes
Community Development
Graffiti Reduction and Mitigation
(Historic Downtown Maintenance
and Preservation)
$75,000 #100 Paused $75,000
Recent personnel changes have
required this item to be put on hold until
PW lead can be hired.
Business Incentives/Programs
(i.e., Façade, Forgivable Loans) $50,000 #3 In Process $50,000 Coming FY 25/26. Surveying has been initiated.
Consultant for Efficient
Processes and Regulations for
Permitting
$100,000 #6 In Process
$100,000
($20,500 spent
to install iWorQ)
The purchase of the iWorQ system has
provided the ability to offer online
permitting and customer training
assistance.
Update General Plan (Utilizing
Five-Year Strategic Plan as
Baseline)
$300,000
(set-aside)
(total est.
$1,000,000)
#46 In Process $300,000
Partial funds set aside in FY 24/25
($300,000); partial update RFP will be
distributed in FY 25/26. Amount
allocated for FY 25/26 ($250,000) will be
reallocated to other projects.
Development of “Use Locals
First” Ordinance/Program $35,000 #110 In Process $35,000 Utilizing/Updating Current Locals 1stOrdinance FY 25/26.
Finance
Fee Study $75,000 #50 In Process
(80%)
$75,000 ($7,500
spent from
existing budget
to begin
process)
Internal study covered some fees.
Estimated completion in FY 25/26. Initial
study estimated increase fee revenue of
approximately $40,000. Appropriate fee
levels to achieve cost recovery goals is a
best practice.
Total One-Time, Non-Recurring
Costs $1,518,000
330
Item A.
.
Appendix A—Tier 1 Priorities Update Page 4
Table 2—Tier 1 Recommended Priorities – On-going, Recurring Costs – Years 1–2 (Revised) On-going, Recurring Costs Cost Recommendation
# in Strategic Plan
Completed
In Process
Paused
Resources
Needed Notes
Police Department
Homelessness Education $10,000 #81 Completed $10,000
Developed a card listing homelessness
programs and options. Has also created a
Homelessness Outreach Support Team
(HOST) to engage homelessness with is
multi-jurisdictional approach. Goes out at
least once per month.
City Manager’s Office
Unfunded Liability $150,000 #49 Completed $150,000 Included in FY 24/25 budget.
Deputy City Administrator
(Succession Planning) $25,000 #59 Completed $25,000 Reorganization/Reclass.
Economic Development Contract $50,000 #108 Completed $174,000 existing budget Hired full-time person.
Class and Comp Study $360,000 #60 Completed
$242,000
($31,500 spent
from existing
budget prior to
Measure Y;
$210,500 first
year
implementation
from Measure Y)
Study results budgeted in FY 24/25 and
future years. Some additional salaries
added for negotiated lower benefits and
five-year labor contracts. Amounts will
increase.
Training Budget (Personnel
Development, Certifications,
Conferences)
$50,000 #123 Completed $50,000 FY 25/26 budget includes $53,000. 331
Item A.
.
Appendix A—Tier 1 Priorities Update Page 5
On-going, Recurring Costs Cost Recommendation
# in Strategic Plan
Completed
In Process
Paused
Resources
Needed Notes
Community Development
Code Enforcement Support
(Consulting) $50,000 #78 Completed $155,600 Contracted this position.
Additional Cleaning of Downtown—
Graffiti Reduction, Sidewalks,
Benches, Garbage Cans—
Supported by Internal and/or
External Resources
$75,000 #100 In Process $75,000
Over 150 uneven sidewalk sections have
been corrected Reservation of parking
spaces for business refuse containers and
installation of planter boxes to screen
refuse containers.
Public Works
Community Events $50,000 #21 Completed $100,000
existing budget
Contracted with Chamber of Commerce to
administer.
Pavement Management
Partnership (On-going Annual Cost) $5,000 #28 In Process $5,000 Personnel changes have caused a delay in
implementation of this goal, however, the
iWorQ software which has been
implemented will help establish a base for
completion of this goal in the future.
Fire
Fire Suppression / Mitigation Efforts
/ Fuel Reduction $50,000 #62 In Process
$66,650 (Grant
writer was hired
using existing
budget)
Completed fuel reduction for various
projects and hired a Grant Writer to secure
a grant to hire personnel to develop a
program to address this goal.
Disaster Preparedness Plan with
Evacuation Routes (Initial OneTime Cost and On-going Annual Cost) – CDD EOC
$75,000 #63 In Process $90,000
Completed an Emergency Operations Plan
which is a base for this goal, and funds are
included in the FY 24/25 budget for this
goal. Staff turnover and lack of data,
however, has slowed progress on this
goal.
Fire – 1 FTE Fire Prevention
Officer/Inspector $84,000 #69 Paused $197,700 Uncertain impact of fire labor negotiations.
Total On-going, Recurring Costs $1,034,000
332
Item A.
.
Appendix A—Tier 1 Priorities Update Page 6
Table 3—Revised Tier 1 Priorities Activity Recap (Revised) Recap
One-Time
Total Revised Resources Needed $1,608,500
Measure Y Resources Allocated/Spent $1,523,500
Other City Funds Allocated/Spent $85,000
Balance $0
On-Going
Total Revised Resources Needed $1,340,950
Measure Y Resources Allocated/Spent $1,066,950
Other City Funds Allocated/Spent $274,000
Balance $0
Totals
Total Measure Y Allocated/Spent on Tier 1 Priorities $2,590,450 Total Other City Funds Allocated/Spent on Tier 1 Priorities $359,000 Total Allocated/Spent on Tier 1 Priorities $2,949,450
333
Item A.