Suisun City City Council
May 13, 2025

CITY COUNCIL
Alma Hernandez, Mayor
Jenalee Dawson, Mayor Pro Tem
Amit Pal, Councilmember
Parise Shepherd, Councilmember
Princess Washington, Councilmember

CITY COUNCIL MEETING

A G E N D A

REGULAR MEETING OF THE SUISUN CITY COUNCIL,

SUISUN CITY COUNCIL ACTING AS SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SUISUN CITY,

AND SUISUN CITY HOUSING AUTHORITY
TUESDAY, MAY 13, 2025
6:30 PM

Suisun City Council Chambers - 701 Civic Center Boulevard - Suisun City, California

.

MEETINGS ARE HELD IN-PERSON, PUBLIC PARTICIPATION IS ALSO AVAILABLE VIA ZOOM

ZOOM MEETING INFORMATION:

WEBSITE: https://zoom.us/join
MEETING ID:
831 4843 7358
CALL IN PHONE NUMBER: (707) 438-1720

REMOTE PUBLIC COMMENT IS AVAILABLE FOR THE CITY COUNCIL MEETING BY EMAILING [email protected] (PRIOR TO 4 PM), VIA WEBSITE, OR ZOOM CALL IN PHONE NUMBER (707) 438-1720
(If attending the meeting via phone press *9 to raise your hand and *6 to unmute/mute for public comment.) (Next Ord. No. – 818)
(Next City Council Res. No. 2025 – 38)
Next Suisun City Council Acting as Successor Agency Res. No. SA2025 - 02) (Next Housing Authority Res. No. HA2025 – 03)

CALL TO ORDER
Mayor Hernandez

ROLL CALL
Council / Board Members

PLEDGE OF ALLEGIANCE

INVOCATION

1 1.

City Manager Update - (Prebula: [email protected]).

2. City Attorney Report - (Enright).

3. Proclamation Proclaiming May 18 - May 24, 2025 to be "National Safe Boating Week" - (Hernandez: [email protected]).

City Council

4. Council Adoption of Resolution No. 2025-__:Approving an Agreement with Kosmont Real Estate Services dba Kosmont Realty for Pre-disposition Real Estate Advisory and Surplus Land Act due diligence Services in Connection with various City owned Properties within Suisun City - (Prebula: [email protected]).

5. Council Adoption of Resolution No. 2025-__: Requiring City Council Approval for Limited- Duration Appointments to Unbudgeted Positions - (Penland: [email protected]).

6. Review and Provide Direction for the Fiscal Year (FY) 2025-26 Proposed Budget – (Deol:
[email protected]).

7. Non-Discussion Items.

APPROVAL OF REORDERING OF AGENDA

CONFLICT OF INTEREST NOTIFICATION
(Any items on the regular meeting agenda that might be a conflict of interest to any Councilmembers / Boardmembers should be identified at this time.)

REPORTS (Informational items only.)

PUBLIC COMMENT
(Request by citizens to discuss any matter under our jurisdiction other than an item posted on this agenda per California Government Code §54954.3. Comments are limited to no more than 3 minutes unless allowable by the Mayor/Chair. Speaker cards are available on the table near the entry of the meeting room and should be given to the City Clerk. By law, no prolonged discussion or action may be taken on any item raised during the public comment period, although informational answers to questions may be given and matters may be referred for placement on a future agenda.)

PRESENTATIONS/APPOINTMENTS
(Presentations, Awards, Proclamations, Appointments).

CONSENT CALENDAR
Consent calendar items requiring little or no discussion may be acted upon with one motion.

PUBLIC HEARING

NONE

GENERAL BUSINESS

COUNCIL COMMENTS

REPORTS: (Informational items only)

ADJOURNMENT

2 Public Access To Agenda Documents
A complete packet of information containing staff reports and exhibits related to each item for the open session of this meeting, and provided to the City Council, are available for public review at least 72 hours prior to a Council/Agency/Authority Meeting at Suisun City Hall 701 Civic Center Blvd., Suisun City. Agenda related writings or documents provided to a majority of the Council/Board/Commissioners less than 72 hours prior to a Council/Agency/Authority meeting related to an agenda item for the open session of this meeting will be made available for public inspection during normal business hours. An agenda packet is also located at the entrance to the Council Chambers during the meeting for public review. The city may charge photocopying charges for requested copies of such documents. To the extent feasible, the agenda packet is available for online public viewing on the City’s website: https://www.suisun.com/Government/City-

Council/Agendas The City Council/Agency/Authority hopes to conclude its public business by 10:00 p.m. No new items will be taken up after 10:00 p.m., unless so moved by a majority of the City Council, and any items remaining will be agendized for the next meeting. The agendas have been prepared with the hope that all items scheduled will be discussed within the time allowed.

Accommodations
If you require an accommodation to participate in this meeting, please contact the City Clerk at (707) 421-7302 or [email protected]. The City’s reasonable accommodation policy is available for review on the City’s website at www.suisun.com/government/city-council/, you may request an electronic copy or have a copy mailed to you. Please note that for accommodations that are not readily available, you must make your request as soon as you can prior to the time of the meeting.

Decorum
All participants are expected to conduct themselves with mutual respect. Conduct that disrupts meetings will be addressed in accordance with Section 54957.95 of the Government Code.

Ordinances
Ordinances are city laws contained in the Suisun City Municipal Code. Enacting a new city law or changing an existing one is a two-step process. Government Code 36934 provides, except when, after reading the title, further reading is waived by regular motion adopted by majority vote all ordinances shall be read in full either at the time of introduction or passage; provided, however, that a reading of the title or ordinance shall not be required if the title is included on the published agenda and a copy of the full ordinance is made available to the public online and in print at the meeting prior to the introduction or passage.

Certification Of Posting
Agendas for regular and special meetings are posted in accordance with the Brown Act at Suisun City Hall, 701 Civic Center Boulevard, Suisun City, CA. Agendas may be posted at other Suisun City locations including:

Suisun City Fire Station, 621 Pintail Drive, Suisun City, CA; Joe Nelson Center, 611 Village Drive, Suisun City, CA;
Harbor Master Office, 800 Kellogg Street, Suisun City, CA.

I, Ashley Nash, Administrative Assistant II for the City of Suisun City, declare under penalty of perjury that the above agenda was posted and available for review, in compliance with the Brown Act. 3 THIS PAGE INTENTIONALLY LEFT BLANK
4 5

THIS PAGE INTENTIONALLY LEFT BLANK
6 AGENDA ITEM NO. 4.

AGENDA TRANSMITTAL

MEETING DATE:

May 13, 2025

AGENDA ITEM:

Council Adoption of Resolution No. 2025-__:Approving an Agreement with Kosmont Real Estate Services dba Kosmont Realty for Pre-disposition Real Estate Advisory and Surplus Land Act due diligence Services in Connection with various City owned Properties within Suisun City.

FISCAL IMPACT:

The proposed contract amount is not to exceed $50,000. Sufficient funding is available in 010-3410-91140 current FY 2025. Additional expenses may be incurred for public meeting participation or optional brokerage services, if separately authorized.

STRATEGIC PLAN:

To provide good governance.

BACKGROUND:

The City of Suisun City and its Successor Agency own various properties that are candidates for future development or disposition. In light of the Surplus Land Act (SLA) and other regulatory requirements governing the sale or lease of public land, it is necessary to undertake a comprehensive evaluation of these parcels to determine viable approaches for disposition while ensuring full legal compliance.

Kosmont Realty, a California-licensed real estate brokerage and advisory firm, has submitted a proposal to provide technical assistance with the City’s land disposition strategy, including property due diligence, SLA compliance support, and real estate transaction advisory services. Earlier this fiscal year, Kosmont was contracted and delivered our recently adopted Economic Development Strategy and Implementation Plan (EDSIP).

STAFF REPORT:

Under the proposed agreement, Kosmont Realty will support the City by undertaking the following key tasks over an estimated six-month period:

Task 1: Project Kick-Off
An initial meeting to review City priorities for the subject properties and gather relevant background materials.

Task 2: Due Diligence and Regulatory Review
Evaluation of market conditions, site constraints, and legal requirements impacting the properties.

Kosmont will provide a memo summarizing findings and alternative disposition strategies.

Task 3: Surplus Land Act Compliance
Preparation of surplus land declarations and Notices of Availability (NOAs), and management of the required 60-day notice period under the SLA.

Task 4: Evaluation of Respondents & Transaction Advisory Assistance with review of expressions of interest, negotiations, and presentation of recommendations to City Council regarding disposition opportunities.

7 Optional Task 5: Brokerage Services (As Authorized by the City) If the City elects to move forward with disposition, Kosmont may act as a broker to facilitate real estate transactions in full compliance with SLA requirements. This optional task would require a separate agreement or authorization.

Kosmont Realty’s services will be provided on an hourly basis in accordance with their 2025 public agency fee schedule (see Attachment A of the proposal), with a not-to-exceed cap of $50,000 for Tasks 1 through 4. Any future engagement for brokerage services or an expanded scope would require separate Council authorization.

Kosmont will commence work upon execution of the agreement and receipt of relevant background materials from the City. Invoices will be submitted monthly, and the City will only be charged for actual time worked and expenses incurred.

STAFF RECOMMENDATION:

It is recommended that the City Council adopt a resolution authorizing the City Manager to execute a professional services agreement with Kosmont Real Estate Services (“Kosmont Realty”) for an amount not to exceed $50,000 for the provision of real estate advisory and due diligence services related to the evaluation and potential disposition of publicly owned properties within Suisun City, in compliance with the Surplus Land Act.

DOCUMENTS ATTACHED:
1 .

Council Adoption of Resolution No. 2025-__:Approving an Agreement with Kosmont Real Estate Services dba Kosmont Realty for Pre-disposition Real Estate Advisory and Surplus Land Act due diligence Services in Connection with various City owned Properties within Suisun City. 2 .

Kosmont Proposal/Agreement

PREPARED BY:

Michael Elm, Administrative Technician
REVIEWED BY:

Jim Bermudez, Development Services Director
APPROVED BY:

Bret Prebula, City Manager

ATTACHMENTS:

1. Kosmont Real Estate dba Kosmont Realty - City of Suisun City - Resolution.docx

2. Kosmont Professional Services Agreement.docx
8 RESOLUTION NO. 2025 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

APPROVING AN AGREEMENT WITH KOSMONT REAL ESTATE SERVICES DBA

KOSMONT REALTY FOR PRE-DISPOSITION REAL ESTATE ADVISORY AND

SURPLUS LAND ACT DUE-DILIGENCE SERVICES IN CONNECTION WITH VARIOUS PROPERTIES WITHIN SUISUN CITY.

WHEREAS, the City of Suisun City and its Successor Agency own multiple parcels of land that are being considered for future disposition and/or development; and WHEREAS, the disposition of publicly owned property is subject to specific legal requirements under the California Surplus Land Act (SLA), Government Code Section 54220 et seq., which require local agencies to follow defined procedures before disposing of surplus property; and
WHEREAS, Kosmont Real Estate Services (“Kosmont Realty”) is a licensed California real estate brokerage and municipal advisory firm with the experience and qualifications necessary to support the City in navigating these requirements and identifying viable options for property disposition; and
WHEREAS, Kosmont Realty has submitted a proposal dated March 20, 2025, to provide pre-disposition due diligence services, SLA compliance assistance, and optional real estate brokerage services for various City-owned parcels for a total not-to-exceed amount of $50,000 for Tasks 1 through 4; and
WHEREAS, City staff recommends approval of the proposed professional services agreement with Kosmont Realty to support strategic property evaluation and compliance with state law;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Suisun City, as follows:

1. The City Council hereby approves the professional services agreement with Kosmont Real Estate Services dba Kosmont Realty in substantially the form presented, for a total not-to-exceed amount of $50,000 for Tasks 1 through 4 as described in the Scope of Services;

2. The City Manager is further authorized to take any and all actions necessary to implement this resolution.

3. Future services beyond the approved scope, including optional brokerage services described in Task 5 of the proposal, shall require separate authorization by the City Council.

PASSED AND ADOPTED at a Regular Meeting of said City Council of the City of Suisun City 9 duly held on Tuesday, the 13th day of May 2025, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 13th day of May 2025.

Anita Skinner
City Clerk
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PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated May ___, 2025 (“Effective Date”) and is between the City of Suisun City, a California municipal corporation, the Successor Agency to the Redevelopment Agency of Suisun City and the Housing Authority of Suisun City (collectively referred to as “ City” or “ Owner”) and Kosmont Real Estate Services (“KRES”) dba Kosmont Realty (“KR” or “Consultant”), a licensed California brokerage firm (Department of Real Estate License #02058445). City and Consultant are sometimes referred to herein as the “Parties”, and individually as a “Party”.

RECITALS
A. City desires to utilize the services of Consultant as an independent contractor to provide assistance with evaluation of alternative approaches for the disposition of publicly owned land, and assistance with the Surplus Land Act (“ SLA”) process.

B. Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

C. City desires to retain Consultant and Consultant desires to serve City to perform these services in accordance with the terms and conditions of this Agreement.

The Parties therefore agree as follows:

1. Consultant’s Services.

A. Scope of Services. Consultant shall perform the services described in the Scope of Services (the “Services”) for City owned parcels (APN’s: 0032-130-010, 020, 030, 040, 060, 0032-141-130, 140, 160, 0032-180-170, 580, 0032-200-320, 0032-282- 040, 050 and 0032-292-010) (“Properties”) within Suisun City and Consultant shall provide assistance with evaluation of alternative approaches for the disposition of publicly owned land, and assistance with the Surplus Land Act (“SLA”) process], attached as Exhibit A . City may request, in writing, changes in the Scope of Services to be performed. Any changes to the scope or cost of work must be in writing and mutually agreed upon by the Parties.

B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Consultant Representative shall be Joseph Dieguez, Senior Managing Director (the “Consultant Representative”). The Consultant Representative shall directly manage Consultant’s Services under this Agreement. Consultant shall not change the Consultant Representative without City’s prior written consent.
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C. Time for Performance. Consultant shall commence the Services on the Effective Date and shall perform all Services by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.

D. Standard of Performance. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.

E. Personnel. Consultant has, or will secure at its own expense, all personnel required to perform the Services required under this Agreement. All of the Services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such Services.

F. Compliance with Laws. Consultant shall comply with all applicable federal, state and local laws, ordinances, codes, regulations and requirements.

G. Permits and Licenses. Consultant shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of Services under this Agreement, including a business license.

2. Term of Agreement. The term of this Agreement shall be 2 years from the Effective Date, unless sooner terminated as provided in Section 12 of this Agreement or extended.

3. Compensation.

A. Compensation. As full compensation for Services satisfactorily rendered, City shall pay Consultant at the hourly rates set forth in the Approved Fee Schedule attached hereto as Exhibit B. In no event shall Consultant be paid more than $50,000 (the “Maximum Compensation”) at the professional services (hourly) fees at KR’s billing rates as shown forth in Exhibit B. KR will perform Task 1-4 advisory services for as many of the Properties as feasible within the identified budget as mutually agreed to by City and Consultant. Future increases in budget will require written approval by City in advance.

Budget may be increased by City in writing at any time.

B. Expenses. The amount set forth in paragraph 3.A. above excludes reimbursement for all Additional Expense incurred in the performance of this Agreement as set forth in Exhibit B.

C. Unauthorized Services and Unanticipated Expenses. City will not pay for any services not specified in the Scope of Services, unless the City Council or the City Representative, if applicable, and the Consultant Representative authorize such services in writing prior to Consultant’s performance of those services or incurrence of additional expenses. Any additional services authorized by the City Council, or (where authorized) the City Manager shall be compensated at the rates set forth in Exhibit B , or, if not 12 -3-
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specified, at a rate mutually agreed to by the Parties. At the request of the Consultant, the City Council may, in writing, reimburse Consultant for an unanticipated expense at its actual cost. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.

4. Method of Payment.

A. Invoices. Consultant shall submit to City an invoice, on a monthly basis, for the Services performed pursuant to this Agreement. Each invoice shall itemize the Services rendered during the billing period, hourly rates charged, if applicable, and the amount due. City shall review each invoice and notify Consultant in writing within ten Business days of receipt of any disputed invoice amounts.

B. Payment. City shall pay all undisputed invoice amounts within 30 calendar days after receipt up to the Maximum Compensation set forth in Section 3 of this Agreement. City does not pay interest on past due amounts. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant. Notwithstanding the preceding sentence, if Consultant is a nonresident of California, City will withhold the amount required by the Franchise Tax Board pursuant to Revenue and Taxation Code Section 18662 and applicable regulations.

C. Audit of Records. Consultant shall make all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement available during Consultant’s regular working hours to City for review and audit by City.

5. Independent Contractor. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City.

6. Information and Documents.

A. Consultant covenants that all data, reports, documents, discussion, or other information (collectively “ Data”) developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed or released by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. Consultant, its officers, employees, agents, or subcontractors shall not without written authorization from the City Manager or unless requested in writing by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property 13 -4-
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located within the City. A response to a subpoena or court order shall not be considered “voluntary,” provided Consultant gives City notice of such court order or subpoena.

B. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City may, but has no obligation to, represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, City’s right to review any such response does not imply or mean the right by City to control, direct or rewrite the response.

C. All Data required to be furnished to City in connection with this Agreement shall become City’s property, and City may use all or any portion of the Data submitted by Consultant as City deems appropriate. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the Services, surveys, notes, and other documents prepared in the course of providing the Services shall become City’s sole property and may be used, reused or otherwise disposed of by City without Consultant’s permission. Consultant may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Consultant.

D. Consultant’s covenants under this Section shall survive the expiration or termination of this Agreement.

7. Conflicts of Interest. Consultant affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Services contemplated by this Agreement. Consultant and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Consultant’s Services under this Agreement, including the Political Reform Act (Gov. Code § 81000, et seq. ) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar Services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section into any subcontract that Consultant executes in connection with the performance of this Agreement.
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8. Indemnification, Hold Harmless, and Duty to Defend.

A. Indemnities.
1) To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties.

Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for reasonable legal expenses and costs incurred by Indemnitees in connection therewith. 2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. 3) Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws.
4) City may offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.2).
5) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnity obligations, Consultant 15 -6-
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shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties.

Workers’ Compensation Acts not Limiting. Consultant’s indemnifications and obligations under this Section, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act.

Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

B. Survival of Terms. Consultant’s indemnifications and obligations under this Section shall survive the expiration or termination of this Agreement for a period not to exceed three (3) years.

9. Insurance.

A. Minimum Scope and Limits of Insurance. Consultant shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of $2,000,000.00 per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of $2,000,000.00 per project or location. If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of $2,000,000.00 per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of Services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under subparagraph A.1) of this Section. 3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of $1,000,000.00 per accident for bodily injury or disease. If Consultant has no employees while performing Services under this Agreement, workers’ compensation policy is not required, but Consultant shall execute a declaration that it has no employees. 16 -7-
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4) Professional Liability/Errors and Omissions Insurance with minimum limits of $2,000,000.00 per claim and in aggregate.

B. Acceptability of Insurers. The insurance policies required under this Section shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self- insurance shall not be considered to comply with the insurance requirements under this Section.

C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming City and its elected and appointed officials, officers, employees, agents and volunteers as additional insureds. This provision shall also apply to any excess/umbrella liability policies.

D. Primary and Non-Contributing. The insurance policies required under this Section shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance available to City. Any insurance or self-insurance maintained by City, its elected and appointed officials, officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

E. Consultant’s Waiver of Subrogation. The insurance policies required under this Section shall not prohibit Consultant and Consultant’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.

F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

G. Cancellations or Modifications to Coverage. Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Section during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail 30 days’ prior written notice to City. If any insurance policy required under this Section is canceled or reduced in coverage or limits, Consultant shall, within two Business Days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon. 17 -8-
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Consultant shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

I. Evidence of Insurance. Prior to the performance of Services under this Agreement, Consultant shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City.

Consultant shall maintain current endorsements on file with City’s Risk Manager.

Consultant shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two weeks prior to the expiration of the coverages.

J. Subcontractor Insurance Requirements. Consultant shall require each of its subcontractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section.

10. Mutual Cooperation.

A. City’s Cooperation. City shall provide Consultant with all pertinent Data, documents and other requested information as is reasonably available for Consultant’s proper performance of the Services required under this Agreement.

B. Consultant’s Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance of Services rendered under this Agreement, Consultant shall render any reasonable assistance that City requires.

11. Records and Inspections. Consultant shall maintain complete and accurate records with respect to time, costs, expenses, receipts, correspondence, and other such information required by City that relate to the performance of the Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to City, its designees and representatives at reasonable times, and shall allow City to examine and audit the books and records, to make transcripts therefrom as necessary, and to inspect all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three years after receipt of final payment.

12. Termination of Agreement.

A. Right to Terminate. City may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to Consultant at least five calendar days before the termination is to be effective. Consultant may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least 60 calendar days before the termination is to be effective. 18 -9-
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B. Obligations upon Termination. Consultant shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In the event of City’s termination of this Agreement due to no fault or failure of performance by Consultant, City shall pay Consultant based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the Services required by this Agreement. Consultant shall have no other claim against City by reason of such termination, including any claim for compensation.

13. Force Majeure. Consultant shall not be liable for any failure to perform its obligations under this Agreement if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to acts of God, embargoes, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, judicial orders, enemy or hostile governmental action, fire or other casualty, or other causes beyond Consultant’s reasonable control and not due to any act by Consultant.

14. Default.

A. Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default.

B. In addition to the right to terminate pursuant to Section 12, if the City Manager determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, City shall serve Consultant with written notice of the default. Consultant shall have ten calendar days after service upon it of the notice in which to cure the default by rendering a satisfactory performance. In the event that Consultant fails to cure its default within such period of time, City may, notwithstanding any other provision of this Agreement, terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

15. Notices. Any notice, consent, request, demand, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective: (a) on personal delivery, (b) on confirmed delivery by courier service during Consultant’s and City’s regular business hours, or (c) three Business Days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the Party to be notified as set forth below:

If to City: Attn:

City of Suisun City
701 Civic Center Blvd
19 -10-
13152-0001\3108764v1.doc
Suisun City, CA 94585
Email:
with a courtesy copy to: Patrick Enright, City Attorney Richards, Watson & Gershon
2300 N Street, Ste 3
Sacramento, CA 95816
Telephone: (415) 782-0358
Email: [email protected]
If to Consultant: Attn: Larry J Kosmont
Kosmont Realty
1601 N Sepulveda Blvd., #382
Manhattan Beach, CA 90266

16. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.

17. Prohibition of Assignment and Delegation. Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Consultant from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

18. No Third Party Beneficiaries Intended. This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement. 20 -11-
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19. Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the Party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.

20. Final Payment Acceptance Constitutes Release. The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished or relating to Consultant’s work or services. Acceptance of payment shall be any negotiation of City’s check or the failure to make a written extra compensation claim within ten calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, subcontractors and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors and agents.

21. Corrections. In addition to the above indemnification obligations, Consultant shall correct, at its expense, all errors in the work which may be disclosed during City’s review of Consultant’s report or plans. Should Consultant fail to make such correction in a reasonably timely manner, such correction may be made by City, and the cost thereof shall be charged to Consultant. In addition to all other available remedies, City may deduct the cost of such correction from any retention amount held by City or may withhold payment otherwise owed Consultant under this Agreement up to the amount of the cost of correction.

22. Non-Appropriation of Funds. Payments to be made to Consultant by City for services performed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Consultant’s services beyond the current fiscal year, this Agreement shall cover payment for Consultant’s services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

23. Exhibits. Exhibits A and B constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, or between a provision of this Agreement and a provision of Consultant’s proposal, the provisions of this Agreement shall control.

24. Entire Agreement and Modification of Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive 21 -12-
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statement of the terms of the agreement between the Parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the Parties. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by both Parties.

25. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the Parties to this Agreement.

26. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.

27. Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a Party of the benefits of any grace or use period allowed in this Agreement.

28. Business Days. “Business days” means days City of Suisun City Hall is open for business.

29. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the Parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a Superior Court with geographic jurisdiction over the City of Suisun City.

30. Attorneys’ Fees. In any litigation or other proceeding by which a Party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing Party shall be entitled to recover all attorneys’ fees, experts’ fees, and other costs actually incurred in connection with such litigation or other proceeding, in addition to all other relief to which that Party may be entitled.

31. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.

32. Counterparts. This Agreement may be executed in multiple counterparts, all of which shall be deemed an original, and all of which will constitute one and the same instrument.
22 -13-
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33. Corporate Authority. Each person executing this Agreement on behalf of his or her Party warrants that he or she is duly authorized to execute this Agreement on behalf of that Party and that by such execution, that Party is formally bound to the provisions of this Agreement.
[SIGNATURE PAGE FOLLOWS]
23 -14-
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The Parties, through their duly authorized representatives are signing this Agreement on the date stated in the introductory clause.

City:

City of Suisun City,
a California municipal corporation
By:

Name: Alma Hernandez
Title: Mayor
ATTEST:

Consultant:

Kosmont Real Estate Services, dba
Kosmont Realty
a California Corporation
By:

Name:

Title:

By:

Name:

Title:
24 -15-
13152-0001\3108764v1.doc
By:

Name: Anita Skinner
Title: City Clerk
Successor Agency of the
Redevelopment Agency of Suisun City
By: __________________________
Name: Alma Hernandez
Title:________________
Housing Authority of Suisun City
By: _______________________
Name: Alma Hernandez
Title: _________________
APPROVED AS TO FORM:

By:

Name: Patrick Enright
Title: City Attorney
25 A-1
13152-0001\3108764v1.doc

EXHIBIT A

SCOPE OF SERVICES
The consulting services that KR will provide will be a relatively limited scope and duration, and advisory in nature. KR will be making recommendations only, which advise the City, including its elected officials, appointed officials and staff, which they can accept or reject. None of KR’s staff will act in a capacity as a elected official, nor appointed official, nor as staff, nor as serving in a “designated position.” TASK 1: Project Kick Off
To initiate the assignment KR will meet with the City to discuss planned future uses, reuses and/or development/disposition priorities for the Properties, and additional sites as may be identified, available market and property specific information (e.g. appraisals, market studies, zoning information, specific plans, etc.) and status of activities to date and anticipated timing of activities moving forward.

TASK 2: Initial Pre-Disposition Property Due Diligence and Regulatory Compliance Activities
KR will conduct initial pre-disposition property due diligence to identify existing market conditions and constraints affecting the potential marketability, sale/lease, and development (e.g. zoning, adjacent uses, site configuration, known environmental condition) of the Properties as well as evaluate market value/pricing ranges, and potential options/approaches to productively advance the future disposition and/or development of the Properties.

KR will also consider potential regulatory requirements in conjunction with the Client’s legal counsel in connection with the disposition of the Properties to satisfy compliance with the SLA and/or other legislative requirements as may be appropriate. KR will provide a brief memorandum summarizing findings and observations regarding potential alternative approaches in connection with future disposition and development of the Properties. For Successor Agency Properties, the disposition will have to comply with dissolution law of the Oversight Board to approve any sale.

TASK 3: Surplus Land Act Process - Declaration and Notice of Availability (NOA)
KR will assist with the preparation of the Surplus Land Act declaration and/or exemption. If the Properties are declared “surplus” by the City Council, KR will prepare the Notice of Availability (“NOA”) as well as coordinate and manage the solicitation process required by the SLA for the Properties in list identified herein (as may be appropriate), which will require a 60-day notice period for respondents.. 26 A-2
13152-0001\3108764v1.doc
TASK 4: Respondent Due Diligence/Public-Private Negotiations The SLA requires that the Client negotiate in good faith with respondents that timely submit a qualified notice of interest for a period of not less than 90-days. KR will be available to assist with reviewing notices of interest, evaluating proposals/offers submitted, and/or public-private transaction structuring and negotiations as may be required with the respondents for the disposition of the Properties. KR can also assist the Client with a presentation to the City Council that will seeks authorization to proceed with prospective transaction (as mutually agreed upon between Client and KR).

OPTIONAL TASK 5: Real Estate Brokerage Services
In compliance with the statutory and procedural disposition requirements of the California SLA and pursuant to Department of Real Estate (“DRE”) licensing requirements, city and KR may enter into or authorize a direct, indirect and/or a cooperative broker relationship with other private sector and/or brokerages/brokers, as desired by City and mutually agreed upon by KR. The purpose of such an arrangement would be to leverage KR’s collective expertise, resources, market knowledge, and transaction-based relationships to successfully sell or lease the Properties, while enabling and assisting brokerage activity by other brokers/brokerage service firms involved in the SLA exposure and disposition process, and to maintain compliance with the sale and lease regulations set forth by the SLA.

As such, KR can be flexibly engaged, as directed by City and mutually agreed upon, to perform brokerage tasks with and independent of other brokerages services firms, retained by City or private sector entities, in soliciting selecting, and negotiating with a preferred buyer(s) developer(s) to effectuate the sale or lease of the Properties. These brokerage activities could include structuring presentations and negotiations with the California Department of Housing and Community Development (“HCD”) to achieve notice(s) of determination and related sale/lease procedure approvals, negotiation of purchase agreement documentation, coordination of escrow title, and ultimate sale or lease, and other transaction-based activities as may be required to close the transaction (as mutually agreed upon between KR and City). Compensation may include a share of commissions and/or fees as may be applicable and agreed upon. 27 EXHIBIT B

APPROVED FEE SCHEDULE
28 AGENDA ITEM NO. 5.

AGENDA TRANSMITTAL

MEETING DATE:

May 13, 2025

AGENDA ITEM:

Council Adoption of Resolution No. 2025-__: Requiring City Council Approval for Limited-Duration Appointments to Unbudgeted Positions.

FISCAL IMPACT:

There is no immediate fiscal impact associated with adopting the resolution. Any future proposals to establish a limited-duration appointment to an unbudgeted position would be subject to City Council review and financial analysis at that time.

STRATEGIC PLAN:

Provide Good Governance and Fiscal Solvency.

BACKGROUND:

The City regularly utilizes limited-duration (limited-term) employees to meet temporary operational needs such as grant-funded assignments, special projects, seasonal work, or to backfill positions vacated due to resignations, retirements, or employee leaves of absence.

According to the City’s Personnel Rules, a Temporary Employee is defined as:
“A person appointed to a temporary or seasonal Position or temporarily appointed to underfill a Position vacated by a Regular Employee… Such Appointments may either be to an authorized Position budgeted or established for a designated period of time, or to an authorized Position budgeted on an hourly, daily, weekly, or seasonal basis.”
• Temporary Employees serve at-will and are excluded from most personnel Rules unless otherwise stated.
• These appointments may be full-time or part-time and may be governed by a contract.

In cases where limited-duration employees are appointed to classified positions on a full-time basis, compensation and benefits are tied to the corresponding Memorandum of Understanding (MOU), as applicable.

STAFF REPORT:

While the City has the authority to make temporary or limited-duration appointments to budgeted positions (including grant-funded roles and those filling behind regular employees), the City Manager proposes establishing a clear procedural requirement for City Council approval in cases where such appointments are made to new or unbudgeted positions.

This policy will enhance transparency, ensure fiscal transparency, ensure fiscal oversight, and align with the City’s commitment to accountable staffing decisions.

STAFF RECOMMENDATION:

It is recommended that Council Adopt Resolution 2025-__Requiring City Council Approval Prior to Limited – Duration Appointments to Unbudgeted Positions.

DOCUMENTS ATTACHED:
1 .

Council Adoption of Resolution No. 2025-__: Requiring City Council Approval for Limited- Duration Appointments to Unbudgeted Positions

PREPARED BY:

Christina Penland, Human Resources Administrator
REVIEWED BY:

Lakhwinder Deol, Finance Director
29 APPROVED BY:

Bret Prebula, City Manager

ATTACHMENTS:

1. Resolution - Limited Term Appointments
30 Resolution No. 2025-___
Adopted May 13, 2025

RESOLUTION NO. 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

REQUIRING CITY COUNCIL APPROVAL PRIOR TO THEAPPOINTMENT OF

LIMITED-DURATION EMPLOYEES TO UNBUDGETED POSITIONS

WHEREAS, the City of Suisun City Personnel Rules define Temporary Employees as individuals appointed to temporary or seasonal positions, or to temporarily underfill positions vacated by Regular Employees, which may include seasonal assignments, grant-funded projects, special projects, or temporarily filling positions recently vacated or in place of Employees on a leave of absence; and
WHEREAS, Temporary Employees serve at-will and may be terminated at any time without just cause or notice and do not have rights to due process appeal under the Personnel Rules, except as may be otherwise provided in Chapter 15; and
WHEREAS, the City currently has authority to appoint Temporary Employees to positions that have been previously authorized and funded through the budget process, including positions that are vacant or funded through grants or other temporary funding sources; and WHEREAS, the City currently has authority to appoint Temporary Employees to positions that have been previously authorized and funded through the budget process, including positions that are vacant or funded through grants or other temporary funding sources; and WHEREAS, appointments to full-time classified positions, even on a limited-duration basis, have their compensation and benefits tied to the applicable Memorandum of Understanding (MOU); and
WHEREAS, the City Council wishes to formalize a policy requiring City Council approval prior to appointing limited-duration (limited-term) employees to position that are not already included in the City’s approved budget;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SUISUN CITY AS FOLLOWS:
31 Resolution No. 2025-___
Adopted May 13, 2025

1. Compensation and Benefits: Limited-duration (limited-term) appointments to full-time classified positions shall have their compensation and benefits aligned to the applicable Memorandum of Understanding (MOU), consistent with existing City Practice.

2. City Council Approval Required for Unbudgeted Positions: No limited-duration (limited- term) appointment shall be made to any position not already included in the City’s adopted budget without prior approval of the City Council.

3. Budgeted Positions Exempt from this Requirement: This resolution shall not apply to limited-duration appointment made to fill positions previously authorized by the City Council, including those that are:
o Grant-funded;
o Approved as part of the annual budget;
o Vacated by regular employees;
o Temporarily filled due to leaves of absence;
o Funded on a seasonal, hourly or project-specified basis.

4. Effective Date: This Resolution shall become effective immediately upon its adoption.

PASSED AND ADOPTED at a Regular Meeting of said City Council of the City of Suisun City duly held on Tuesday, the 13th day of May 2025, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 13th day of May 2025.

Anita Skinner
City Clerk
32 AGENDA ITEM NO. 6.

AGENDA TRANSMITTAL

MEETING DATE:

May 13, 2025

AGENDA ITEM:

Review and Provide Direction for the Fiscal Year (FY) 2025-26 Proposed Budget.

FISCAL IMPACT:

Review of the FY 2025-26 Proposed Budget will not have any fiscal impact. It is an informational item.

STRATEGIC PLAN:

Provide Good Governance, Section 4.1 – Review and update required planning and financial documents as needed. Ensure Fiscal Solvency.

BACKGROUND:

Each fiscal year, the City is required to adopt a balanced budget that outlines expected revenues and proposed expenditures for the upcoming year. The budget serves as a financial plan to ensure responsible use of public resources and to maintain essential services across all departments. The FY 2025-26 Proposed Budget reflects the City’s ongoing commitment to fiscal responsibility, service delivery, and alignment with the goals established in the City Council’s Strategic Plan.

The FY 2025- 26 Annual Budget will be presented to the City Council at the Budget Hearing on June 17, 2025. As a prelude to finalizing the full budget document, this item provides a summary and overview of options for the FY 2025 -26 Annual Budget with an emphasis on the General Fund and Measure S. Other funds are not reviewed in depth as most of the other funds have little discretion to the use of the money except for within the allowed uses of the funding source. This agenda item provides the Council with an opportunity to provide feedback about the proposed budget options prior to preparing the document itself in advance of the public hearing.

STAFF REPORT:

The FY 2025-26 Proposed Budget totals $98.4M across all funds, including the General Fund, Special Revenue Funds, and Capital Project Funds.

General Fund and Measure S Fund Fiscal Analysis
The General Fund is the primary fund that is used by the City. Main sources of revenues in the General Fund are property taxes, sales taxes, transient occupancy taxes, cannabis taxes, and charges for services.

The Proposed Budget has $28.2M in total revenues (including transfer ins) and $29.5M in total expenditures (including transfer outs) resulting in a General Fund shortfall or ending balance of $1.3M.

To balance the budget, staff must transfer $1.3M from the Stabilization (Reserve) Fund (Fund 015) or have to cut costs to balance the budget.

Measure S is a 1.75% general transactions and use tax levied on gross receipts within the city of Suisun City, online, and on vehicles purchased anywhere in the state. Measure S was renewed by the voters of Suisun City on November 5, 2024 and has a 25-year term. The Measure S Oversight Committee has the responsibility to review financial reports to ensure compliance with the legal use of the revenues. The Measure S Committee reviewed and accepted the FY 2025-26 Proposed Budget on April 29, 2025 during a Joint Committee meeting.

The Proposed Budget has $6,891,000 in total revenues and $6,891,000 in total expenditures. The 33 Measure S Fund is transferring out $6,129,270 to the General Fund, $ 330,000 to Dispatch Support Services fund, and $174,430 to Information Technology Fund. It is also funding $225,000 for software agreement payments for the RIMS software used by the Police Department. 97% of the total revenue from Measure S is being allocated for public safety services (57% to Police and 40% to Fire) and remaining 3% is being allocated to other departments.

Reserve Fund
The City's Stabilization (Reserve) Fund balance is $5.5M projected as of June 30, 2025. Based on the Proposed Budget, the city is not in compliance with the City’s reserve policy which recommends a reserve for unforeseen contingencies of 20% ($5.9M) of the operating budget.

Attached memorandum from the City Manager provides detailed analysis of the proposed budget and city's fiscal situation.

STAFF RECOMMENDATION:

It is recommended that the City Council review and provide direction on the Proposed Budget for Fiscal Year (FY) 2025-26 and adopt the budget by resolution at the subsequent regular meeting on June 17, 2025.

DOCUMENTS ATTACHED:

1 .

Power Point Presentation (will be provided on Monday)
2 .

Exhibit A - FY 2025-26 Proposed Budget Summary by department. 3 .

City Manager's Budget Strategy Memo.

PREPARED BY:

Lakhwinder Deol, Finance Director
REVIEWED BY:

Bret Prebula, City Manager
APPROVED BY:

Bret Prebula, City Manager

ATTACHMENTS:

2. Exhibit A FY 2025-26 Proposed Budget Summary.pdf

3. FY25-26 Budget Strategy Memo.pdf
34 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
010 General Fund (1,571,297.80) (90,682.72) (0.14) 1,288,419.63 Accounting Program 156,217.61 195,518.75 282,854.22 372,451.77 Revenue (243,009.44) (247,614.06) (246,300.00) (255,300.00) Expense 399,227.05 443,132.81 529,154.22 627,751.77 Building Maint. 930,129.14 418,556.76 1,023,280.89 782,575.00 Revenue - - - - Expense 930,129.14 418,556.76 1,023,280.89 782,575.00 Building Program (183,768.44) (676,876.48) (145,410.55) (528,005.94) Revenue (679,871.01) (1,162,770.31) (785,600.00) (1,135,600.00) Expense 496,102.57 485,893.83 640,189.45 607,594.06 Citizen Governance 14,000.00 11,099.04 25,000.00 10,000.00 Expense 14,000.00 11,099.04 25,000.00 10,000.00 City Clerk 84,766.04 86,556.80 91,474.82 95,213.63 Revenue (5,402.94) (5,402.94) - - Expense 90,168.98 91,959.74 91,474.82 95,213.63 City Council 133,517.31 159,175.32 236,302.99 215,075.81 Revenue - - - - Expense 133,517.31 159,175.32 236,302.99 215,075.81 City Manager Office 545,970.61 402,867.33 762,250.19 670,640.38 Revenue (67,960.16) (76,660.77) (118,800.00) - Expense 613,930.77 479,528.10 881,050.19 670,640.38 City Treasurer 12,683.37 7,366.17 8,674.17 8,609.57 Expense 12,683.37 7,366.17 8,674.17 8,609.57 Code Enforcement 98,801.00 90,587.01 107,295.31 156,195.31 Expense 98,801.00 90,587.01 107,295.31 156,195.31 COVID-19 (87,300.00) 673.03 (87,300.00) (87,300.00) Revenue (87,300.00) - (87,300.00) (87,300.00) Expense - 673.03 - - CSO-Community Srv. 190,285.10 188,791.36 397,668.28 289,398.28 Revenue (116,249.00) - (116,249.00) (116,249.00) Expense 306,534.10 188,791.36 513,917.28 405,647.28 Econ Development 335,448.41 238,730.56 220,820.10 481,148.85 Revenue (115,488.61) (114,488.61) (226,820.00) (1,000.00) Expense 450,937.02 353,219.17 447,640.10 482,148.85 Electrions 147,800.00 48,084.75 147,800.00 47,800.00 Revenue (3,000.00) - (3,000.00) (3,000.00) Expense 150,800.00 48,084.75 150,800.00 50,800.00 Emergency Prep 11,374.36 197,307.21 221,369.91 192,661.85 Revenue (246,591.00) (43,850.57) (51,300.00) (51,300.00) Expense 257,965.36 241,157.78 272,669.91 243,961.85 EngineeringSupport 114,463.34 26,671.00 113,847.47 54,910.51 Revenue (131,627.87) (196,237.04) (201,600.00) (201,600.00) Expense 246,091.21 222,908.04 315,447.47 256,510.51 Finance Admin. 148,952.34 165,693.19 180,746.37 159,905.55 Revenue (1,866.18) (1,866.18) - - Expense 150,818.52 167,559.37 180,746.37 159,905.55 Fire Admin. 728,959.29 704,141.95 716,867.53 667,918.96 Revenue (28,519.32) (28,519.32) - - Expense 757,478.61 732,661.27 716,867.53 667,918.96 Fire Operations 2,592,363.65 2,454,897.49 2,807,061.11 1,330,508.68 Revenue (1,671,228.18) (1,743,936.59) (1,875,635.73) (3,228,516.73) Expense 4,263,591.83 4,198,834.08 4,682,696.84 4,559,025.41 35 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
Fire-Strike 100,000.00 523.21 - - Revenue (96,850.00) - (96,850.00) (96,850.00) Expense 196,850.00 523.21 96,850.00 96,850.00 Human Resources 302,454.58 221,309.19 551,424.41 438,726.23 Revenue - - - - Expense 302,454.58 221,309.19 551,424.41 438,726.23 Investment Program 7,036.14 19,845.45 0.43 (11.33) Revenue (59,699.63) (59,261.77) (71,453.21) (71,453.64) Expense 66,735.77 79,107.22 71,453.64 71,442.31 Kellog Trash Enclosure 55,800.00 (11,941.98) 56,152.00 21,552.00 Revenue (45,200.00) (66,472.02) (45,200.00) (50,000.00) Expense 101,000.00 54,530.04 101,352.00 71,552.00 Landscape Maint 352,608.23 320,780.67 840,904.83 753,001.47 Revenue (70,456.00) (82,227.97) (73,770.53) (73,770.53) Expense 423,064.23 403,008.64 914,675.36 826,772.00 Non-Departmental (17,294,953.51) (13,377,552.05) (18,571,811.16) (13,068,824.00) Revenue (18,995,057.00) (14,395,748.74) (19,975,516.80) (14,467,092.00) Expense 1,700,103.49 1,018,196.69 1,403,705.64 1,398,268.00 PD/Support Services 1,580,807.50 1,701,694.80 1,771,670.58 1,608,028.47 Expense 1,580,807.50 1,701,694.80 1,771,670.58 1,608,028.47 Planning 169,167.15 142,136.01 358,905.84 423,364.00 Revenue (62,749.00) (53,102.20) (44,100.00) (54,100.00) Expense 231,916.15 195,238.21 403,005.84 477,464.00 Police Admin. 1,011,230.10 862,211.04 1,298,681.70 1,251,064.76 Revenue (17,327.80) (12,642.54) (9,500.00) (9,500.00) Expense 1,028,557.90 874,853.58 1,308,181.70 1,260,564.76 Police Operations 5,254,386.39 4,314,571.57 5,534,697.69 4,135,014.06 Revenue (1,648,957.12) (2,393,220.37) (2,579,839.75) (4,381,722.75) Expense 6,903,343.51 6,707,791.94 8,114,537.44 8,516,736.81 PW Admin 33,681.05 38,243.54 51,994.70 48,505.78 Revenue (102,178.73) (102,178.73) (96,400.00) (96,400.00) Expense 135,859.78 140,422.27 148,394.70 144,905.78 PW-SSWA Support (14,457.97) - - (0.18) Revenue (194,810.84) (186,309.99) (192,576.00) (222,422.00) Expense 180,352.87 186,309.99 192,576.00 222,421.82 RPM Department 776,290.37 952,033.26 995,576.03 755,890.68 Revenue (805,281.60) (731,333.45) (949,000.00) (2,187,000.00) Expense 1,581,571.97 1,683,366.71 1,944,576.03 2,942,890.68 STA-Bldg Maintenance - - 1,200.00 2,400.00 Expense - - 1,200.00 2,400.00 Utilities Billing 119,989.04 - - (0.52) Revenue (1,206,909.51) (1,340,836.56) (1,454,983.85) (1,442,923.00) Expense 1,326,898.55 1,340,836.56 1,454,983.85 1,442,922.48 (blank) - 5,621.33 - - Revenue - - - - Expense - 5,621.33 - - 012 Measure S Fund - (316,329.04) - - (blank) - (316,329.04) - - Revenue (3,754,500.00) (3,801,331.56) (5,730,483.30) (6,891,000.00) Expense 3,754,500.00 3,485,002.52 5,730,483.30 6,891,000.00 015 Stabilization Fund (5,157,644.00) - (2,541,200.00) (2,541,200.00) (blank) (5,157,644.00) - (2,541,200.00) (2,541,200.00) 36 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
Revenue (5,157,644.00) - (5,157,644.00) (2,541,200.00) Expense - - 2,616,444.00 - 025 (389.00) (18.31) (389.00) (389.00) (blank) (389.00) (18.31) (389.00) (389.00) Revenue (389.00) (8.63) (389.00) (389.00) Expense - (9.68) - - 026 (25,708.00) (1,594.15) (25,708.00) (25,708.00) (blank) (25,708.00) (1,594.15) (25,708.00) (25,708.00) Revenue (36,708.00) (752.28) (36,708.00) (36,708.00) Expense 11,000.00 (841.87) 11,000.00 11,000.00 037 - (1,910.21) (16,300.00) (16,300.00) (blank) - (1,910.21) (16,300.00) (16,300.00) Revenue (40,529.00) (901.43) (40,529.00) (40,529.00) Expense 40,529.00 (1,008.78) 24,229.00 24,229.00 050 (133,993.99) (1,997.09) (103,549.13) (94,154.33) (blank) (133,993.99) (1,997.09) (103,549.13) (94,154.33) Revenue (242,304.00) (86,841.78) (246,304.00) (246,304.00) Expense 108,310.01 84,844.69 142,754.87 152,149.67 051 (17,333.00) (12,528.66) (27,677.72) (27,077.72) (blank) (17,333.00) (12,528.66) (27,677.72) (27,077.72) Revenue (49,533.00) (33,773.00) (50,500.00) (50,500.00) Expense 32,200.00 21,244.34 22,822.28 23,422.28 052 (7,118.60) 28,372.87 - 6,193.30 (blank) (7,118.60) 28,372.87 - 6,193.30 Revenue (86,651.00) (59,017.30) (73,901.00) (73,901.00) Expense 79,532.40 87,390.17 73,901.00 80,094.30 053 (72,662.00) (1,164.42) (86,562.00) (37,762.00) (blank) (72,662.00) (1,164.42) (86,562.00) (37,762.00) Revenue (104,662.00) (23,531.87) (104,662.00) (105,262.00) Expense 32,000.00 22,367.45 18,100.00 67,500.00 055 - - - - (blank) - - - - Revenue - - - - Expense - - - - 069 (22,081.48) 757,350.14 - - (blank) (22,081.48) 757,350.14 - - Revenue (1,121,436.00) - (426,700.00) - Expense 1,099,354.52 757,350.14 426,700.00 - 105 360,955.04 343,538.28 456,430.50 375,624.04 (blank) 360,955.04 343,538.28 456,430.50 375,624.04 Revenue (680,855.87) (847,808.45) (747,500.00) (747,500.00) Expense 1,041,810.91 1,191,346.73 1,203,930.50 1,123,124.04 110 (551,590.00) (267,089.10) (706,958.00) - (blank) (551,590.00) (267,089.10) (706,958.00) - Revenue (1,296,343.00) (834,363.14) (1,530,158.00) (1,530,158.00) Expense 744,753.00 567,274.04 823,200.00 1,530,158.00 115 1,556,827.00 1,033,147.10 (1,006,374.77) (15,300.00) (blank) 1,556,827.00 1,033,147.10 (1,006,374.77) (15,300.00) Revenue (10,475,365.00) (3,060,179.60) (11,464,386.22) (10,228,105.00) Expense 12,032,192.00 4,093,326.70 10,458,011.45 10,212,805.00 116 (1,541.55) 115,772.61 15,303.86 28,257.00 (blank) (1,541.55) 115,772.61 15,303.86 28,257.00 37 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
Revenue (190,314.00) (108,878.76) (190,314.00) (190,314.00) Expense 188,772.45 224,651.37 205,617.86 218,571.00 117 (11,311.70) 28,205.25 (7,774.50) (5,085.26) (blank) (11,311.70) 28,205.25 (7,774.50) (5,085.26) Revenue (2,203,549.00) (32,858.62) (2,203,549.00) (2,203,549.00) Expense 2,192,237.30 61,063.87 2,195,774.50 2,198,463.74 120 (4,819,048.00) (681,182.70) (4,299,508.00) (3,485,954.00) (blank) (4,819,048.00) (681,182.70) (4,299,508.00) (3,485,954.00) Revenue (5,325,422.00) (664,048.73) (5,325,422.00) (5,325,422.00) Expense 506,374.00 (17,133.97) 1,025,914.00 1,839,468.00 125 (14,960.00) 2,404.77 (14,960.00) (14,960.00) (blank) (14,960.00) 2,404.77 (14,960.00) (14,960.00) Revenue (44,960.00) (27,595.23) (44,960.00) (44,960.00) Expense 30,000.00 30,000.00 30,000.00 30,000.00 126 - - - - (blank) - - - - Revenue (69,900.00) - (39,900.00) (39,900.00) Expense 69,900.00 - 39,900.00 39,900.00 129 (28,700.00) (70,512.20) (1,422.00) (23,000.00) (blank) (28,700.00) (70,512.20) (1,422.00) (23,000.00) Revenue (41,200.00) (82,275.31) (89,822.00) (89,822.00) Expense 12,500.00 11,763.11 88,400.00 66,822.00 130 229,677.48 38,991.19 - 505,039.57 (blank) 229,677.48 38,991.19 - 505,039.57 Revenue 19,027.04 (53,386.98) (311,400.00) 209,600.00 Expense 210,650.44 92,378.17 311,400.00 295,439.57 132 (296.00) (2,312.84) (2,459.00) 233.00 (blank) (296.00) (2,312.84) (2,459.00) 233.00 Revenue (25,759.00) (7,742.01) (25,759.00) (25,759.00) Expense 25,463.00 5,429.17 23,300.00 25,992.00 134 (83.00) (1,662.28) (334.00) (12.00) (blank) (83.00) (1,662.28) (334.00) (12.00) Revenue (7,860.00) (5,126.79) (7,860.00) (7,860.00) Expense 7,777.00 3,464.51 7,526.00 7,848.00 136 - - - - (blank) - - - - Expense - - - - 139 - - - - (blank) - - - - Revenue (5,000.00) (7,500.00) (7,818.75) (7,500.00) Expense 5,000.00 7,500.00 7,818.75 7,500.00 142 - (3,479.73) - 10,674.24 (blank) - (3,479.73) - 10,674.24 Revenue (46,900.00) (48,523.42) (46,900.00) (46,900.00) Expense 46,900.00 45,043.69 46,900.00 57,574.24 150 (120.00) - (120.00) (120.00) (blank) (120.00) - (120.00) (120.00) Revenue (4,720.00) - (4,720.00) (4,720.00) Expense 4,600.00 - 4,600.00 4,600.00 152 - - - - (blank) - - - - Revenue - - - - 38 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
Expense - - - - 153 - - (145,000.00) (145,000.00) (blank) - - (145,000.00) (145,000.00) Revenue (145,000.00) (186,159.67) (145,000.00) (145,000.00) Expense 145,000.00 186,159.67 - - 156 - - - - (blank) - - - - Revenue - - - - Expense - - - - 158 (5,215.00) - (5,215.00) (5,215.00) (blank) (5,215.00) - (5,215.00) (5,215.00) Revenue (5,215.00) - (5,215.00) (5,215.00) Expense - - - - 159 - - - - (blank) - - - - Revenue (10,000.00) - (10,000.00) (10,000.00) Expense 10,000.00 - 10,000.00 10,000.00 160 - - - - (blank) - - - - Expense - - - - 161 - - - - (blank) - - - - Revenue (36,000.00) - (36,000.00) (36,000.00) Expense 36,000.00 - 36,000.00 36,000.00 167 (793,385.00) 1,245,021.82 - - (blank) (793,385.00) 1,245,021.82 - - Revenue (3,320,238.00) (86,178.66) (1,749,300.00) (1,078,755.00) Expense 2,526,853.00 1,331,200.48 1,749,300.00 1,078,755.00 168 - - - - (blank) - - - - Revenue - - - - Expense - - - - 169 - - - - (blank) - - - - Revenue - - - - Expense - - - - 171 (36,840.64) (18,344.89) (28,224.08) - (blank) (36,840.64) (18,344.89) (28,224.08) - Revenue (229,940.40) (166,194.56) (228,926.00) - Expense 193,099.76 147,849.67 200,701.92 - 173 - - - - (blank) - - - - Revenue (150,000.00) (26,643.64) (150,000.00) (150,000.00) Expense 150,000.00 26,643.64 150,000.00 150,000.00 174 - - - - (blank) - - - - Revenue (200,302.00) (13,462.05) (200,302.00) (200,302.00) Expense 200,302.00 13,462.05 200,302.00 200,302.00 175 - 617,439.26 (107,786.00) - (blank) - 617,439.26 (107,786.00) - Revenue (1,520,000.00) - (1,020,000.00) (1,020,000.00) Expense 1,520,000.00 617,439.26 912,214.00 1,020,000.00 39 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
176 (5,300.00) - (21,900.00) (21,900.00) (blank) (5,300.00) - (21,900.00) (21,900.00) Revenue (28,300.00) (24,717.57) (28,300.00) (28,300.00) Expense 23,000.00 24,717.57 6,400.00 6,400.00 180 (19,033.00) (1,040.58) (19,033.00) (19,033.00) (blank) (19,033.00) (1,040.58) (19,033.00) (19,033.00) Revenue (22,733.00) (1,040.58) (22,733.00) (22,733.00) Expense 3,700.00 - 3,700.00 3,700.00 183 - (10,446.27) - - (blank) - (10,446.27) - - Revenue (50,000.00) (31,400.71) (60,000.00) (60,000.00) Expense 50,000.00 20,954.44 60,000.00 60,000.00 184 - - - - (blank) - - - - Revenue (160,000.00) (80,303.59) (160,000.00) (160,000.00) Expense 160,000.00 80,303.59 160,000.00 160,000.00 185 1,335,027.98 237,222.49 400,000.00 821,060.13 (blank) 1,335,027.98 237,222.49 400,000.00 821,060.13 Revenue (3,108,792.12) (572,212.70) (3,959,189.00) (3,959,189.00) Expense 4,443,820.10 809,435.19 4,359,189.00 4,780,249.13 186 - - - - (blank) - - - - Revenue (20,000.00) - (20,000.00) (20,000.00) Expense 20,000.00 - 20,000.00 20,000.00 187 18,781.82 (55,799.86) - 104.79 (blank) 18,781.82 (55,799.86) - 104.79 Revenue (63,493.00) (80,836.23) (113,493.00) (113,493.00) Expense 82,274.82 25,036.37 113,493.00 113,597.79 188 (75,121.19) (1,203,374.97) (843,469.63) (587,499.41) (blank) (75,121.19) (1,203,374.97) (843,469.63) (587,499.41) Revenue (688,327.00) (1,309,566.38) (2,335,000.00) (2,335,000.00) Expense 613,205.81 106,191.41 1,491,530.37 1,747,500.59 189 (159,826.51) 12,001.18 (297,860.15) (297,860.15) (blank) (159,826.51) 12,001.18 (297,860.15) (297,860.15) Revenue (597,432.37) (354,500.37) (596,899.00) (596,899.00) Expense 437,605.86 366,501.55 299,038.85 299,038.85 190 (2,212.08) 141,579.20 (54,899.01) 172,678.61 (blank) (2,212.08) 141,579.20 (54,899.01) 172,678.61 Revenue (372,713.93) (216,399.27) (373,418.00) (394,621.00) Expense 370,501.85 357,978.47 318,518.99 567,299.61 202 (9,987.00) - - - (blank) (9,987.00) - - - Revenue (349,387.00) (349,387.00) (365,045.00) (381,371.00) Expense 339,400.00 349,387.00 365,045.00 381,371.00 203 - - - - (blank) - - - - Revenue (60,342.00) (60,342.00) (60,342.00) (60,342.00) Expense 60,342.00 60,342.00 60,342.00 60,342.00 205 - -
(blank) - -
Revenue (19,787.00) (19,787.00)
Expense 19,787.00 19,787.00
40 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
210 (10,728.00) (16,227.11) (10,728.00) (10,489.00) (blank) (10,728.00) (16,227.11) (10,728.00) (10,489.00) Revenue (90,900.00) (79,644.68) (90,900.00) (90,900.00) Expense 80,172.00 63,417.57 80,172.00 80,411.00 211 (32,956.00) (341.39) (6,000.00) (21,843.00) (blank) (32,956.00) (341.39) (6,000.00) (21,843.00) Revenue (44,256.00) (341.39) (21,843.00) (21,843.00) Expense 11,300.00 - 15,843.00 - 222 (916.00) (43.15) - (922.00) (blank) (916.00) (43.15) - (922.00) Revenue (916.00) (20.36) (922.00) (922.00) Expense - (22.79) 922.00 - 231 (4,245.00) (200.57) (4,245.00) (4,245.00) (blank) (4,245.00) (200.57) (4,245.00) (4,245.00) Revenue (4,245.00) (94.64) (4,245.00) (4,245.00) Expense - (105.93) - - 234 - - - - (blank) - - - - Revenue (50,500.00) (50,416.85) (50,500.00) (50,500.00) Expense 50,500.00 50,416.85 50,500.00 50,500.00 300 (2,439,816.00) (1,654,526.83) (2,289,816.00) (2,438,138.00) (blank) (2,439,816.00) (1,654,526.83) (2,289,816.00) (2,438,138.00) Revenue (2,977,709.00) (1,713,453.12) (2,977,709.00) (2,977,709.00) Expense 537,893.00 58,926.29 687,893.00 539,571.00 302 - 94,059.71 - 145,000.00 (blank) - 94,059.71 - 145,000.00 Revenue (1,211,000.00) - (1,211,000.00) (1,066,000.00) Expense 1,211,000.00 94,059.71 1,211,000.00 1,211,000.00 310 (69,555.00) (15,732.16) (4,555.00) (1,862.00) (blank) (69,555.00) (15,732.16) (4,555.00) (1,862.00) Revenue (295,374.00) (183,493.04) (295,374.00) (295,374.00) Expense 225,819.00 167,760.88 290,819.00 293,512.00 312 (263,901.00) (139,786.81) (263,901.00) (266,260.00) (blank) (263,901.00) (139,786.81) (263,901.00) (266,260.00) Revenue (534,250.00) (385,886.60) (534,250.00) (534,250.00) Expense 270,349.00 246,099.79 270,349.00 267,990.00 314 (73,049.00) (18,482.36) (43,049.00) (5,534.00) (blank) (73,049.00) (18,482.36) (43,049.00) (5,534.00) Revenue (164,341.00) (50,036.61) (134,341.00) (96,441.00) Expense 91,292.00 31,554.25 91,292.00 90,907.00 320 8,474.00 52,066.04 (45,000.00) (11,624.00) (blank) 8,474.00 52,066.04 (45,000.00) (11,624.00) Revenue (609,371.00) (503,628.59) (609,371.00) (609,371.00) Expense 617,845.00 555,694.63 564,371.00 597,747.00 322 (155,538.00) 372,474.65 (567.00) (567.00) (blank) (155,538.00) 372,474.65 (567.00) (567.00) Revenue (530,917.00) (155,418.66) (375,946.00) (375,946.00) Expense 375,379.00 527,893.31 375,379.00 375,379.00 337 (642,713.00) (30,094.46) (642,713.00) (642,713.00) (blank) (642,713.00) (30,094.46) (642,713.00) (642,713.00) Revenue (642,713.00) (14,201.60) (642,713.00) (642,713.00) Expense - (15,892.86) - - 41 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
340 (101,432.00) (4,309.38) (101,432.00) (69,432.00) (blank) (101,432.00) (4,309.38) (101,432.00) (69,432.00) Revenue (101,432.00) (2,033.60) (101,432.00) (101,432.00) Expense - (2,275.78) - 32,000.00 420 (25,908.52) (53,318.54) (14,789.61) (10,819.00) (blank) (25,908.52) (53,318.54) (14,789.61) (10,819.00) Revenue (665,283.00) (427,277.57) (678,021.00) (678,021.00) Expense 639,374.48 373,959.03 663,231.39 667,202.00 422 (145,204.00) (55,457.85) (143,054.00) (143,204.00) (blank) (145,204.00) (55,457.85) (143,054.00) (143,204.00) Revenue (147,304.00) (55,712.04) (147,304.00) (147,304.00) Expense 2,100.00 254.19 4,250.00 4,100.00 425 (3,063.62) (8,794.78) (2,268.77) 8,343.77 (blank) (3,063.62) (8,794.78) (2,268.77) 8,343.77 Revenue (44,545.00) (24,045.00) (44,545.00) (44,545.00) Expense 41,481.38 15,250.22 42,276.23 52,888.77 430 91,728.94 28,322.69 31,726.87 13,185.49 (blank) 91,728.94 28,322.69 31,726.87 13,185.49 Revenue (116,658.76) (192,221.47) (194,313.76) (195,813.76) Expense 208,387.70 220,544.16 226,040.63 208,999.25 435 108,418.58 20,271.94 35,159.28 34,267.00 (blank) 108,418.58 20,271.94 35,159.28 34,267.00 Revenue 41,632.00 (39,929.53) (42,950.00) (42,950.00) Expense 66,786.58 60,201.47 78,109.28 77,217.00 445 (14,516.25) (44,308.94) (18,078.85) (33,869.00) (blank) (14,516.25) (44,308.94) (18,078.85) (33,869.00) Revenue (279,870.00) (269,068.11) (287,983.00) (287,983.00) Expense 265,353.75 224,759.17 269,904.15 254,114.00 446 (4,743.00) (13,740.77) - 33.00 (blank) (4,743.00) (13,740.77) - 33.00 Revenue (163,838.00) (156,062.37) (168,723.00) (168,723.00) Expense 159,095.00 142,321.60 168,723.00 168,756.00 448 (5,237.14) 5,221.62 (4,185.95) (1,325.00) (blank) (5,237.14) 5,221.62 (4,185.95) (1,325.00) Revenue (39,675.00) (9,820.57) (39,928.00) (39,928.00) Expense 34,437.86 15,042.19 35,742.05 38,603.00 449 (324,925.00) (143,855.76) (329,798.00) (342,476.00) (blank) (324,925.00) (143,855.76) (329,798.00) (342,476.00) Revenue (331,125.00) (140,640.92) (335,998.00) (348,676.00) Expense 6,200.00 (3,214.84) 6,200.00 6,200.00 453 (10,752.18) (2,636.77) (13,346.47) (6,268.00) (blank) (10,752.18) (2,636.77) (13,346.47) (6,268.00) Revenue (284,545.00) (125,680.12) (288,124.00) (288,124.00) Expense 273,792.82 123,043.35 274,777.53 281,856.00 454 (17,048.45) (4,043.17) (15,596.75) (5,818.00) (blank) (17,048.45) (4,043.17) (15,596.75) (5,818.00) Revenue (66,293.00) (35,540.80) (67,098.00) (67,098.00) Expense 49,244.55 31,497.63 51,501.25 61,280.00 455 (72,116.77) 98,538.76 (32,088.30) (2,820.00) (blank) (72,116.77) 98,538.76 (32,088.30) (2,820.00) Revenue (449,051.00) (306,194.89) (455,406.00) (455,406.00) Expense 376,934.23 404,733.65 423,317.70 452,586.00 42 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
458 (7,433.01) (9,111.91) (6,582.11) 11,879.00 (blank) (7,433.01) (9,111.91) (6,582.11) 11,879.00 Revenue (112,678.00) (72,528.74) (114,790.00) (114,790.00) Expense 105,244.99 63,416.83 108,207.89 126,669.00 459 (6,346.83) 61,468.35 3,587.89 12,183.00 (blank) (6,346.83) 61,468.35 3,587.89 12,183.00 Revenue (579,498.00) (126,522.64) (582,913.00) (582,913.00) Expense 573,151.17 187,990.99 586,500.89 595,096.00 460 66,112.25 52,987.86 3,850.00 31,800.00 (blank) 66,112.25 52,987.86 3,850.00 31,800.00 Revenue (31,480.00) (48,000.00) (104,904.37) (48,000.00) Expense 97,592.25 100,987.86 108,754.37 79,800.00 461 (21,430.00) 15,093.27 - 1,433.00 (blank) (21,430.00) 15,093.27 - 1,433.00 Revenue (731,530.00) (885,189.22) (759,894.00) (759,894.00) Expense 710,100.00 900,282.49 759,894.00 761,327.00 462 (25,736.69) (3,130.91) (24,752.97) 469.00 (blank) (25,736.69) (3,130.91) (24,752.97) 469.00 Revenue (34,370.00) (10,963.00) (34,667.00) (34,667.00) Expense 8,633.31 7,832.09 9,914.03 35,136.00 464 (17,748.73) 4,339.14 (16,585.95) (15,647.00) (blank) (17,748.73) 4,339.14 (16,585.95) (15,647.00) Revenue (44,075.00) (9,457.19) (44,352.00) (44,352.00) Expense 26,326.27 13,796.33 27,766.05 28,705.00 465 (3,226.87) 1,334.63 (1,288.13) (1,249.00) (blank) (3,226.87) 1,334.63 (1,288.13) (1,249.00) Revenue (70,700.00) (18,652.47) (71,197.00) (71,197.00) Expense 67,473.13 19,987.10 69,908.87 69,948.00 466 (878.70) 21,500.93 (279.91) 9,333.00 (blank) (878.70) 21,500.93 (279.91) 9,333.00 Revenue (53,528.00) (11,269.66) (53,831.00) (53,831.00) Expense 52,649.30 32,770.59 53,551.09 63,164.00 467 (2,498.00) 14,858.32 648.83 9,239.00 (blank) (2,498.00) 14,858.32 648.83 9,239.00 Revenue (43,312.00) (13,890.25) (43,704.00) (43,704.00) Expense 40,814.00 28,748.57 44,352.83 52,943.00 468 (5,323.80) 3,229.19 1,013.92 5,210.00 (blank) (5,323.80) 3,229.19 1,013.92 5,210.00 Revenue (54,155.00) (30,877.71) (54,155.00) (54,155.00) Expense 48,831.20 34,106.90 55,168.92 59,365.00 469 (2,090.00) (8,994.72) - (500.00) (blank) (2,090.00) (8,994.72) - (500.00) Revenue (73,193.00) (78,220.88) (75,345.00) (75,345.00) Expense 71,103.00 69,226.16 75,345.00 74,845.00 470 - (10,847.00)
(blank) - (10,847.00)
Revenue (120,115.00) (120,115.00)
Expense 120,115.00 109,268.00
705 Veh/Equip-Maint (225,537.51) (13,846.96) (60,477.37) 4,081.81 (blank) (225,537.51) (13,846.96) (60,477.37) 4,081.81 Revenue (380,691.59) (150,184.58) (228,787.59) (218,497.59) Expense 155,154.08 136,337.62 168,310.22 222,579.40 43 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
706 Veh/Equ Replacement (510,872.65) (322,161.75) 100,000.00 642.00 (blank) (510,872.65) (322,161.75) 100,000.00 642.00 Revenue (2,544,674.00) (1,070,958.61) (2,544,674.00) (3,333,674.00) Expense 2,033,801.35 748,796.86 2,644,674.00 3,334,316.00 710 Network Maint 24,170.88 141,316.01 - (43,844.15) (blank) 24,170.88 141,316.01 - (43,844.15) Revenue (707,575.37) (413,750.99) (847,346.81) (908,765.03) Expense 731,746.25 555,067.00 847,346.81 864,920.88 712 Dispatch (69,623.60) (333,507.22) 9,458.34 - (blank) (69,623.60) (333,507.22) 9,458.34 - Revenue (1,904,035.04) (2,023,106.44) (2,450,525.06) (2,271,722.06) Expense 1,834,411.44 1,689,599.22 2,459,983.40 2,271,722.06 713 PW Maint 79,963.04 18,863.00 99,825.69 (10,345.11) (blank) 79,963.04 18,863.00 99,825.69 (10,345.11) Revenue (2,319,928.31) (2,633,920.90) (2,891,190.78) (3,095,641.00) Expense 2,399,891.35 2,652,783.90 2,991,016.47 3,085,295.89 715 Liability Insurance Reserve 11,389.23 183,978.94 56,748.33 - (blank) 11,389.23 183,978.94 56,748.33 - Revenue (1,437,833.83) (1,139,976.61) (1,831,666.26) (2,055,004.59) Expense 1,449,223.06 1,323,955.55 1,888,414.59 2,055,004.59 721 Rec/Community (36.00) - (36.00) - (blank) (36.00) - (36.00) - Revenue (24,636.00) - (24,636.00) (24,636.00) Expense 24,600.00 - 24,600.00 24,636.00 750 Workers Comp. Insurance (401,390.77) (414,725.29) (488,198.83) 242.00 (blank) (401,390.77) (414,725.29) (488,198.83) 242.00 Revenue (1,628,959.00) (1,044,617.07) (1,628,959.00) (1,742,157.00) Expense 1,227,568.23 629,891.78 1,140,760.17 1,742,399.00 765 Unemployment Self Insured (4,214.00) (2,840.76) (4,739.00) - (blank) (4,214.00) (2,840.76) (4,739.00) - Revenue (14,475.00) (18,680.76) (15,000.00) (15,000.00) Expense 10,261.00 15,840.00 10,261.00 15,000.00 805 (3,520.67) 1,308.73 (3,520.67) (3,520.67) (blank) (3,520.67) 1,308.73 (3,520.67) (3,520.67) Revenue (3,520.67) (8,270.28) (3,520.67) (3,520.67) Expense - 9,579.01 - - 807 (1,814.00) 102.00 (1,814.00) (1,814.00) (blank) (1,814.00) 102.00 (1,814.00) (1,814.00) Revenue (1,814.00) (3,047.00) (1,814.00) (1,814.00) Expense - 3,149.00 - - 808 (776.00) (4,298.90) (776.00) (776.00) (blank) (776.00) (4,298.90) (776.00) (776.00) Revenue (776.00) (4,351.70) (776.00) (776.00) Expense - 52.80 - - 810 (1,285,950.00) (154,869.16) (1,285,950.00) (1,285,950.00) (blank) (1,285,950.00) (154,869.16) (1,285,950.00) (1,285,950.00) Revenue (1,285,950.00) (1,674,996.00) (1,285,950.00) (1,285,950.00) Expense - 1,520,126.84 - - 815 - - - - (blank) - - - - Revenue - - - - 825 (268.75) (935.00) (268.75) (268.75) 44 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
(blank) (268.75) (935.00) (268.75) (268.75) Revenue (268.75) (13,343.75) (268.75) (268.75) Expense - 12,408.75 - - 830 (3,177,555.44) (140,192.16) (3,177,555.44) (3,177,555.44) (blank) (3,177,555.44) (140,192.16) (3,177,555.44) (3,177,555.44) Revenue (3,177,555.44) (6,706,624.26) (3,177,555.44) (3,177,555.44) Expense - 6,566,432.10 - - 835 - - - - (blank) - - - - Revenue - (241,008.04) - - Expense - 241,008.04 - - 901 114,716.67 - - 3,316.00 (blank) 114,716.67 - - 3,316.00 Revenue (280,187.00) (250,000.00) (250,000.00) (250,000.00) Expense 394,903.67 250,000.00 250,000.00 253,316.00 902 (406,985.28) (3,929,089.19) 14,616.06 16,500.00 (blank) (406,985.28) (3,929,089.19) 14,616.06 16,500.00 Revenue (6,598,065.00) (6,163,361.25) (5,625,840.00) (5,625,840.00) Expense 6,191,079.72 2,234,272.06 5,640,456.06 5,642,340.00 903 (3,778,224.13) 265,565.01 (3,811,969.24) (3,824,477.94) (blank) (3,778,224.13) 265,565.01 (3,811,969.24) (3,824,477.94) Revenue (4,637,220.97) (168,534.70) (4,624,475.00) (4,624,475.00) Expense 858,996.84 434,099.71 812,505.76 799,997.06 907 1,945.00 (49,779.40) 3,499.61 4,458.74 (blank) 1,945.00 (49,779.40) 3,499.61 4,458.74 Revenue (512,568.00) (497,519.42) (512,568.00) (512,568.00) Expense 514,513.00 447,740.02 516,067.61 517,026.74 908 (48,265.93) 64,812.34 (51,552.69) (40,473.00) (blank) (48,265.93) 64,812.34 (51,552.69) (40,473.00) Revenue (116,302.00) (11,972.71) (125,602.00) (111,802.00) Expense 68,036.07 76,785.05 74,049.31 71,329.00 909 670,253.40 261,310.21 11,406.04 10,660.62 (blank) 670,253.40 261,310.21 11,406.04 10,660.62 Revenue 103,801.00 (190,817.57) (585,640.00) (585,640.00) Expense 566,452.40 452,127.78 597,046.04 596,300.62 919 (122,109.22) 9,685.68 (123,913.41) (124,570.37) (blank) (122,109.22) 9,685.68 (123,913.41) (124,570.37) Revenue (185,365.00) (27,252.33) (184,865.00) (184,865.00) Expense 63,255.78 36,938.01 60,951.59 60,294.63 932 (3,800.00) (36,506.16) (3,800.00) (2,700.00) (blank) (3,800.00) (36,506.16) (3,800.00) (2,700.00) Revenue (2,505,800.00) (3,494,697.50) (2,805,800.00) (3,802,700.00) Expense 2,502,000.00 3,458,191.34 2,802,000.00 3,800,000.00 935 (27,685.00) - (27,685.00) (27,685.00) (blank) (27,685.00) - (27,685.00) (27,685.00) Revenue (27,685.00) - (27,685.00) (27,685.00) Expense - - - - 937 (319,092.00) (11,984.00) (319,092.00) (319,092.00) (blank) (319,092.00) (11,984.00) (319,092.00) (319,092.00) Revenue (319,092.00) (6,599.07) (319,092.00) (319,092.00) Expense - (5,384.93) - - 945 21,840.19 167,760.74 23,014.00 (77,673.54) 45 Row Labels FY 2023-2024 Budget
FY 2023-2024
YTD Actuals
FY 2024-2025
Budget
FY 2025-2026
Proposed Budget
(blank) 21,840.19 167,760.74 23,014.00 (77,673.54) Revenue (255,191.00) (375,488.41) (315,900.00) (610,200.00) Expense 277,031.19 543,249.15 338,914.00 532,526.46 946 (550.00) 51,663.82 (7,550.00) - (blank) (550.00) 51,663.82 (7,550.00) - Revenue (8,000.00) - (8,000.00) - Expense 7,450.00 51,663.82 450.00 - 974 - 9,544.74 - - (blank) - 9,544.74 - - Revenue (35,610.00) (312.31) (35,610.00) (35,610.00) Expense 35,610.00 9,857.05 35,610.00 35,610.00 (blank) -
(blank) -
(blank) -
Grand Total (23,741,864.55) (3,760,619.83) (22,501,994.08) (16,822,186.10) 46 MEMORANDUM

TO: Honorable Mayor and City Council
FROM: Bret Prebula, City Manager
DATE: May 13, 2025
SUBJECT: Fiscal Year 2025 –2026 Budget Strategy Framework – Balancing Sustainability, Community Impact, and Strategic Planning

EXECUTIVE SUMMARY
Over the past decade, Suisun City has faced repeated structural budget challenges due to limited revenue growth, historic underinvestment in economic development, and increasing fixed operational costs. While Measure S has temporarily improved our fiscal outlook, the City still faces a projected $1.3 million to $1.8 million in General Fund shortfall for FY 2025–

26. The difference in the General Fund shortfall is related to whether or not the City enters into a reimbursement agreement with California Forever, as there is significant annual staff time that would be reimbursed related to the work on evaluating this project.

We are now at a policy crossroads because of the above and cumulative decisions made in the past. The Council is being asked to provide direction on how to proceed with addressing the various issues through one of three primary fiscal strategy options:

1. Use reserves to cover the entire shortfall.

2. Partial use of reserves and identifying service reductions selected by City Council to equal the total shortfall.

3. Fully balance the budget through service reductions only.

Each option has trade-offs in terms of operational stability, community service delivery, and long-term fiscal resilience. Staff would like City Council to make recommendations for both the $1.3 million and $1.8 million shortfall levels so staff will know what to bring back for City Council approval during the Budget Hearings, depending on the outcome of the reimbursement agreement discussions.

At this point in the budget creation, if any additional service delivery cuts are required, staff will need City Council to identify those areas of reduction as they will create noticeable, and depending on the reduction level, deep cuts to service delivery. Currently, with 75% or lower staffing levels in most departments, compared to the benchmarks, additional cuts beyond what staff has already proposed in the FY 2025-26 budget may cause foundational 47 shifts in how we operate the City. In the PowerPoint presentation, staff has laid out a variety of additional service delivery cuts the City Council can deliberate along with the service delivery impacts. During the presentation, if City Council decides to make these reductions, staff will also identify cumulative impacts of various selections, but those cannot be quantified until the public discussion is happening with City Council.

This memorandum summarizes the current budget picture, outlines our community and organizational priorities, and provides a decision-making framework grounded in sustainability and limiting public service reductions to the best of our fiscal ability.

BACKGROUND: SUISUN CITY’S FISCAL CONTEXT
Over the past decade, Suisun City has faced systemic challenges, including:
• A small geographic and economic footprint compared to surrounding cities. • Limited commercial growth due to lack of scale and lack of historic decision making around pushing stronger economic development outcomes
• The use of ARPA and high vacancy rates that previously masked long-term imbalance but created weak community service delivery.
• Revenue per capita is almost half of similar size cities; a similar city of 30,000 residents in Solano County, City of Benicia, that has General Fund revenue near $45M to $50M when you remove Valero is almost double the City’s General Fund. • With almost a $15M to $20M revenue shortfall compared to the same size city in Solano County, the constraints of service delivery are unavoidable.

Recent efforts have included:
• Adoption of a Strategic Plan
o This Plan is the strategic roadmap that sets the general workplan for the city over the next five (5) years. Even with the low staffing levels, the City has already made progress on this plan. The Plan is reviewed each year and staff provide updates on the outcomes of the Plan along the way. The link to the Plan can be found here: d9292f11-c3b9-11ef-a9e2-005056a89546- 5360f717-96cd-4307-943a-c7dc7bb46276-1739494426.pdf
• Passage of Measure S (generating an additional $3M annually). • A focus on “back to basics” to ensure the foundational pieces of local governmental services can have the focus on the limited staff and resources. • Adoption of an Economic Development Strategy and Implementation Plan (EDSIP) to unlock infill development.
o The EDSIP is the foundation of the progressive move forward by the City Council to enhance the infill economic development throughout the City. This document lays the foundation of the development plan which will begin by putting all the City owned property through the Sta te’s Surplus Lands Act (SLA) process. This process is mandated by the State before any City owned 48 property can be sold. This pr ocess will take 6 months but is the sign to developers that the City is ready to move aggressively to develop the remainder of the City. A link to the EDSIP can be found here:

SKM_C360i25022715480
• Adoption of a legislative platform. This platform, along with our lobbyists, assists the City in achieving State and Federal support when those opportunities present themselves. As a reminder, the benefit of State and Federal funding is more focused on project specific goals and not something that will assist in our ongoing structural budget issues. A link to the legislative platform can be found here: Legislative Platform.Suisun
• Ongoing engagement with California Forever for potential annexation.

Despite this progress, core services remain under strain, and many departments operate at or below industry standards, with most departments at 75% or lower than benchmark staffing levels.

FY 2025–26 BUDGET SNAPSHOT
• General Fund Revenues (with reimbursement agreement): $28.2M • General Fund Revenue (without reimbursement agreement): $27.7M • Expenditures: $29.5M
Expenditures do not include any Cost of Living Adjustment (COLA) as the City is in contract negotiations with all its employe groups.
• Shortfall (with reimbursement agreement): $(1.3M)
• Shortfall (without reimbursement agreement): $(1.8M)
Key revenue positives (beyond the Measure S increase) include reimbursement agreement ($560K), new Republic Services contract ($300K), permit revenues ($300K). However, ARPA funds have expired. ARPA had been previously used to stop gap some of the budget shortfall now needed to be addressed in the FY 2025-26 budget.

The expenditures have increased approximately 6% from the FY 2024-25 budget. Again, this increase does not include any COLA for employees as the City is still engaged in contract negotiations. The increase of 6% includes normal step increases for employees not yet at the top step of their salary scale, increases to general liability and workmen ’s comp insurance, normal increases to our CALPERS annual contributions, as well as the 2 -FTE Police Officers, 2-FTE Firefighters, and 2-FTE Public Works Maintenance staff (illegal dumping crew) added at the FY 2024- 25 mid -year budget. These positions were vital to addressing near -term staffing concerns that have plagued these three departments. The Public Works positions are offset by a cost recovery through the new Republic Services contract that is slated to come to the City Council in early summer.
49 OPTIONS FOR COUNCIL CONSIDERATION
Option 1: Use Reserves to Cover Full Shortfall
Pros:
• Avoids service cuts in FY 25–26
• Maintains organizational momentum
• Preserves core staffing
Cons:
• Further depletes reserves, risking future emergencies • Sends signal that structural reforms may be deferred
Strategic Pitfall: May delay difficult decisions and create steeper deficits if growth strategies are delayed or fail to materialize.

Option 2: Use Partial Reserves and Implement Service Delivery Cuts Pros:
• Balances budget responsibility and service delivery continuity • Preserves some strategic investments
• Slows reserve drawdown
Cons:
• Reduced service levels in some departments will have an immediate community impact
• Potential public dissatisfaction with visible program reductions • If department cuts are made, it may impact burn out and staffing levels as staff may chose to leave the City for other organizations.

Strategic Pitfall: Cuts may weaken short -term community confidence unless clearly communicated as a tradeoff for long-term resilience.

Option 3: Fully Balance Through Reductions
Pros:
• Reserves remain untouched
• City structurally lives within means
Cons:
• High-risk: deep cuts may lead to deep staffing loss as burn out grows • Momentum and success achieved in the last year will be lost or minimized • Organizational morale, service delivery, and progress all impacted which could result in increased crime, lower quality of life, increased blight, deteriorating park 50 maintenance and repairs , and a general lack of ability to respond timely to many community issues.

Strategic Pitfall: May appear fiscally prudent but could cause irreparable harm to progress, talent retention, and community trust.

RECOMMENDED DECISION FRAMEWORK
Council should weigh each option against two guiding principles:

1. Stability: Will this decision stabilize our services and staffing levels without over- leveraging our reserves?

2. Sustainability: Does this option buy enough time for infill development and/or annexation efforts to succeed?

In alignment with our Strategic Plan, staff recommends pursuing Option 2 with an interest- based lens— balancing partial use of reserves with high-impact cuts that do not cripple momentum. Staff would recommend using no more than $750,000 of reserves to achieve this strategic objective. This use of reserves would be $1.9M less than what was in the FY 2024-25 budget.

NEXT STEPS
Staff will return with a final proposed FY 2025–26 budget reflecting Council’s direction. The date of the June budget hearing is still being determined.

As always, thank you for your thoughtful leadership and commitment to Suisun City’s future.

Respectfully submitted,

Bret Prebula
City Manager
City of Suisun City
51