6 5
5 FY 2023-24
Position Title Funding Source
1. Wastewater Treatment Plant Operator II 100% Wastewater Fund
2. Engineering Assistant 50% General Fund
25% Wastewater Fund
25% Water Fund
3. Public Works Construction Inspector II 30% General Fund 35% Wastewater Fund
35% Water Fund
FY 2024-25
Position Title Funding Source
4. Water Systems Operator 100% Water Fund
5. Sr Instrumentation & Elec Tech 100% Water Fund
6. Utilities SCADA Analyst II 50% Wastewater Fund
50% Water Fund
7. Street Maintenance Worker II 100% General Fund
Community Development Department
The Community Development Department (CDD) directly serves the public on a daily basis. CDD has experienced an increase in activity levels over the past two years, as evidenced by various CDD updates provided at several City Council meetings. Not only have activity levels greatly increased, but the State has implemented a significant amount of legislation that increases burdens on staff by mandating short turnarounds for items such as solar permits and Accessory Dwelling Unit (ADU) applications. CDD has managed by utilizing consultants to process applications, but after careful evaluation, management proposed strategic position additions. The positions outlined in the table below will enable CDD to focus on enhancing the customer experience by more quickly and efficiently processing applications and also enable the City to rely less on outside consultants.
FY 2023-24
Position Title Funding Source
1. Plan Check Assistant 100% General Fund
2. Community Development Tech II 100% General Fund
3. Community Development Tech II 100% General Fund
FY 2024-25
Position Title Funding Source
4. Combination Building Inspector 100% General Fund
Human Resources Department
The Human Resources Department’s (HRD) workload has significantly increased over the past few years due to a variety of reasons, including a greater emphasis citywide on workforce development and training, including Diversity, Equity, and Inclusion (DEI) training, a greater number of recruitments, and added California Occupational Safety and Health Administration (Cal/OSHA) compliance. HRD has also been without a general administrative position since it was eliminated during Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 the Great Recession. The proposed position additions in HRD are presented below. The Office Supervisor position will be shared with both the Cultural Affairs Department and City Clerk Department as each of those departments lack a general administrative position.
FY 2023-24
Position Title Funding Source
1. Assistant HR Analyst 100% General Fund
2. Office Supervisor 100% General Fund
FY 2024-25
Position Title Funding Source
3. Assistant HR Analyst 100% General Fund
Finance Department
The Finance Department provides a wide variety of services both internally and externally. Management evaluated the overall operations in considering potential position additions. In an effort to consolidate services and provide more efficient maintenance of City buildings, the Facilities Division has taken on the responsibility of maintenance and improvement of all City facilities. In addition, several new capital projects focused on sustainability have been included in the Proposed CIP Budget. The addition of a position that oversees construction projects will enable the City to more effectively manage an increasing number of projects. The City has also consolidated many purchasing responsibilities within the Finance Department and the addition of an analyst will enable the City to more efficiently provide purchasing services to all City departments
FY 2023-24
Position Title Funding Source
1. Construction Project Coordinator 100% General Fund
FY 2024-25
Position Title Funding Source
2. Assistant Analyst 100% General Fund
Community Engagement and Community Feedback Form
As a part of the Budget development process, the “Your City, Your Priorities” budget outreach and community engagement campaign was implemented. Staff attended in-person events such as the Goebel Wellness festival and presented to the Council on Aging and Youth Commission. Community engagement efforts focused on informing the public about the budget process, how to participate, and how to submit feedback on their budget priorities. Overall, 223 feedback forms were submitted from various community members. The areas of focus that were ranked as the highest priority were supporting the development of affordable housing, focusing on water conservation efforts, supporting homelessness services, and maintaining public safety services.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Budget information was provided through a dedicated website www.tobudget.org.
The website contained a resident feedback form and new graphical representations of the budget process, how tax dollars are spent, and how much General Fund services cost residents per day. In addition, a frequently asked questions (FAQ) page and links to the City’s financial transparency tool were included for those interested in exploring the City’s budget and financial information in more detail.
To promote interest and resident participation, social media outlets Facebook, Instagram, Twitter, and Nextdoor were utilized. Brief videos featured staff providing informative statistics on specific City service areas. Video content featured the City’s transit system and five key places to visit through public transportation, community services and events, the cost of running the Library per day and five new items available for checkout at the Library (not just books), and an overview of the Hill Canyon Treatment Plant.
DISCUSSION/ANALYSIS:
Overview of Proposed FY 2023-24 and FY 2024-25 Operating Budget The Proposed Budget is organized into various sections as follows and is included under separate cover:
•Citywide Budget Summary: This section includes information on all funds both by revenue and by appropriation.
•General Fund Budget Summary: This section includes information on the General Fund’s revenues and appropriations.
•Summaries by Fund: This section includes summaries by individual fund and by division within each department. Proposed goals and objectives and performance measures by function for each department are also included. Staff is in the process of completing goals and objectives, and performance measures to be included in the final budget document. •Position Summaries: This section includes a ten-year history of positions by department and a detailed position summary by fund.
Overall Budget Summary
The total proposed appropriations for the City for all funds for FY 2023-24 is $266.1 million, and for FY 2024-25 is $268.1 million, as shown in the table on the following page. The General Fund is the largest portion of the citywide Budget at 41.5 percent and 42.3 percent of appropriations in FY 2023-24 and FY 2024-25, respectively.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Funds
Proposed
Budget
FY 2023-24
% of
Total
Budget
Proposed
Budget
FY 2024-25
% of
Total
Budget
General Fund 110,425,493$ 41.5% 113,476,305$ 42.3%
Water Fund 46,860,438 17.6% 47,182,197 17.6%
Wastewater Fund 38,516,825 14.5% 30,988,132 11.6%
Transportation Fund 17,041,909 6.4% 14,863,054 5.5%
Library Fund 10,244,900 3.9% 11,205,546 4.2%
Street Improvement Funds 7,952,980 3.0% 11,140,219 4.2% Los Robles Golf Course Fund 7,803,131 2.9% 8,291,506 3.1% Landscaping Assessment District Fund 7,132,692 2.7% 8,946,404 3.3% Theatres Fund 5,124,183 1.9% 5,204,607 1.9%
Lighting Assessment District Fund 3,678,805 1.4% 3,170,354 1.2% Solid Waste Fund 3,006,138 1.1% 2,349,984 0.9%
Stormwater/Flood Control Assessment Funds 2,201,577 0.8% 3,745,347 1.4% Grants Fund 1,896,250 0.7% 1,008,570 0.4%
ECTA - East County Transit Alliance 1,162,000 0.4% 1,162,049 0.4% Public Financing Authority Fund 1,000,400 0.4% 1,006,200 0.4% Capital Projects Funds 993,930 0.4% 3,336,011 1.2%
Community Development Block Grant (CDBG) 575,000 0.2% 575,000 0.2% Housing Trust Fund 215,879 0.1% 221,844 0.1%
Cable Television (PEG) Fund 188,000 0.1% 108,000 0.0%
Law Enforcement Agency Seizure Fund 104,000 0.0% 104,000 0.0% Total Citywide Appropriations 266,124,530$ 100.0% 268,085,329$ 100.0% Citywide Appropriations By Fund
The following is a summary of the City’s Major Funds:
General Fund
The General Fund is the chief operating fund for City operations and services, including the following:
•Community development/building/housing/planning/zoning •Community services (senior/teen/recreation/cultural arts) •General governance and administrative oversight
•Public works/highways/streets/engineering/sustainability •Public safety (Police)
The General Fund is the City’s discretionary fund where revenue can be utilized for any purpose and is not restricted to a specific service or program. Staff ensures the General Fund is structurally balanced by verifying that ongoing revenues are greater than or equal to ongoing expenditures. Capital improvements are funded with General Fund reserves, and not ongoing revenues.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Revenue: Thousand Oaks is a low-tax city which incorporated without a general municipal property tax. Although the City now receives a small portion of property tax revenue, this represents approximately 16.0 percent of the Proposed General Fund Revenue Budget. The primary revenue source is sales tax, which comprises approximately 36.6 percent of the Proposed General Fund Revenue Budget. The City is limited in its ability to increase revenue and thus is largely reliant upon the overall health of the economy.
Staff has taken a conservative approach to budgeting for adjustments in major General Fund revenue estimates over the projected FY 2022-23 actuals in light of a potential recession. As illustrated in the chart below, estimated revenue and transfers in for FY 2023-24 are $109.6 million and for FY 2024-25 are $111.8 million.
General Fund Revenue
Revenue and Transfers
Actuals
FY 2021-22
Projected
Actuals
FY 2022-23
Proposed
Budget
FY 2023-24
Proposed
Budget
FY 2024-25
Taxes and Fees
Sales and Use Tax 38,071,482$ 38,596,157$ 39,621,786$ 40,888,157$ Property Tax 15,885,998 16,279,447 17,296,111 17,694,312 Property Tax In-Lieu of VLF 13,952,024 14,748,603 15,418,190 15,883,819 Franchise Fee 7,235,925 7,387,928 7,515,268 7,761,616
Transient Occupancy Tax 4,503,872 4,900,000 5,000,000 5,150,000 Business Tax 2,221,656 2,250,000 2,250,000 2,250,000
Other Taxes 114,355 570,000 564,000 564,000
Total Taxes and Fees 81,985,312$ 84,732,135$ 87,665,355$ 90,191,904$ Charges for Current Services 7,200,339 6,730,471 8,059,410 8,298,780 Licenses and Permits 5,204,532 6,013,109 4,757,504 4,661,504 Fines and Penalties 961,574 854,810 962,440 937,440
Revenue from Other Agencies 8,133,843 785,799 1,465,300 1,465,300 Revenue From Use of Money 2,294,222 3,100,000 3,750,171 3,417,012 Other Revenue 1,441,321 1,508,872 1,576,450 1,428,450
Total Revenue 107,221,143$ 103,725,196$ 108,236,630$ 110,400,390$ Transfers From Other Funds 1,154,803 1,209,506 1,322,180 1,352,419 Total Revenue and Transfers 108,375,946$ 104,934,702$ 109,558,810$ 111,752,809$ Discussion of the General Fund’s major revenue budget is included below:
•Sales Tax represents the largest category of revenue for the General Fund.
Sales Tax is budgeted to increase to $39.6 million (2.7 percent) in FY 2023- 24 and $40.9 million (3.2 percent) in FY 2024-25. The autos and transportation sector continues to lead the City’s sales tax revenue. Car sales have consistently remained strong while fuel and service stations have experienced increases due to rising gas prices. With the potential of an economic slowdown, sales tax revenue projections reflect positive yet conservative increases.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 •Property Tax revenue is budgeted to increase to $17.3 million (6.2 percent) in FY 2023-24 and $17.7 million (2.3 percent) in FY 2024-25. Residential property accounts for 3/4ths of the assessed value in the City. In calendar year 2022, while residential sale prices continued to rise, concerns over rising interest rates and inflation began to decrease the volume of home sales. While assessed valuation increases have been reflected in the proposed FY 2023-24 budget, the proposed FY 2024-25 budget was set at a more conservative level in recognition of the cooling housing market. •Property Tax in-lieu of Motor Vehicle License Fee (VLF) revenue is budgeted to increase to $15.4 million (4.5 percent) in FY 2023-24 and $15.9 million (3.0 percent) in FY 2024-25. For both Property Tax revenue and VLF revenue, the City works closely with its Property Tax consultant in developing budget estimates.
•Franchise Fee revenue is budgeted to increase to $7.5 million (1.7 percent) in FY 2023-24 and $7.8 million (3.3 percent) in FY 2024-25. The City receives Franchise Fee revenue from its waste hauler, cable companies, and utility providers (water, electric, and natural gas). Water, electric, and natural gas providers have all experienced increases in rates and this is expected to continue in the future.
•Transient Occupancy Tax (TOT) revenue is budgeted to increase to $5.0 million (2.0 percent) in FY 2023-24 and to $5.2 million (3.0 percent) in FY 2024-25. The FY 2023-24 budget is based on the recovery in TOT from the COVID-19 lows combined with increased occupancy and room rates with a modest increase in FY 2024-25.
•Business Tax revenue was formally budgeted as part of Licenses and Permits. To more accurately reflect the tax portion of the Business License program, the tax portion will be budgeted in the Taxes and Fees category of revenue and the smaller fee portion will still be budgeted in the Licenses and Permits category. For FY 2023-24 and FY 2024-25, Business Tax revenue is budgeted to remain flat at $2.3 million for both fiscal years to conservatively reflect a potential economic recession.
•Licenses and Permits revenue is budgeted at (after removing Business Tax revenue to its new category) $4.8 million in FY 2023-24 and $4.7 million in FY 2024-25. The reduction in FY 2023-24 is due to moving Business Tax from Licenses and Permits to Taxes and Fees. Budget is conservative due to rising interest rates and a slowdown in large construction projects.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Appropriations: The largest appropriation requirements of the General Fund are staffing costs and Police costs. For FY 2023-24 and FY 2024-25, Salaries and Benefits comprise approximately 43.3 percent and 43.9 percent, and Police costs comprise approximately 34.6 percent and 35.2 percent of operating requirements, respectively. As illustrated in the table below, the Proposed Budget for General Fund appropriations for FY 2023-24 is $110.4 million and for FY 2024-25 is $113.5 million.
General Fund Appropriations
Appropriations
Prior Year ActualFY 2021-22
Projected ActualsFY 2022-23
Proposed Budget FY 2023-24
Proposed Budget FY 2024-25 Salaries and Benefits 34,647,639$ 37,057,265$ 42,334,459$ 44,459,910$ Police Services 29,211,811 31,444,983 33,799,215 35,579,515 Maintenance and Operations 13,779,237 15,273,263 21,550,471 21,138,093 Total Operating Requirements 77,638,687$ 83,775,511$ 97,684,145$ 101,177,518$ Capital Improvements/Outlay 1,281,041 1,686,842 5,594,771 4,001,682 Maintenance Improvements 68,266 67,796 3,237,500 1,572,500 Transfers to Other Funds 3,695,491 7,350,383 3,909,077 6,724,605 Total Requirements 82,683,485$ 92,880,532$ 110,425,493$ 113,476,305$ •Salaries and Benefits represent the largest appropriation category of the General Fund’s Operating Budget. Salaries and Benefits are budgeted at $42.3 million in FY 2023-24 and $44.5 million in FY 2024-25. The increase is due to estimated salary and benefit increases and additional positions as discussed in the Background Section. The City budgets for 100 percent staffing levels during the fiscal year but invariably realizes savings due to vacancies.
One of the biggest challenges facing all cities is rising pension costs. In FY 2019-20, City Council took a proactive approach to address its CalPERS unfunded liability by approving a fresh start program which reduced the amortization period from 30 years to 15 years. This action was projected to save the City approximately $30.0 million. The City also began making one- time additional payments of approximately $1.5 million annually based on salaries and benefits savings each year. In addition, the City established a pension rate stabilization trust fund (PRSTF) with a $22.5 million contribution in FY 2018-19 which has grown to $27.5 million as of March 31, 2023. The PRSTF acts as a rainy-day fund in case of future economic downturns that result in pension costs that greatly exceed budgeted projections.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 •Police Costs are budgeted at $33.8 million in FY 2023-24 and $35.6 million in FY 2024-25. The increase in FY 2023-24 is based on projected actuals in FY 2022-23 as opposed to Adopted Budget. Actual costs generally come in under budget primarily due to savings from vacancies throughout the year. City staff maintains regular dialogue with Ventura County Sheriff’s Department leadership on current law enforcement needs and strategically plans for the future.
•Maintenance & Operations (M&O) costs including chargebacks are budgeted at $21.6 million in FY 2023-24 and $21.1 million in FY 2024-25.
The Proposed Budget includes $0.9 million each fiscal year for the Navigation Center’s contracted operating services. As part of the City’s comprehensive General Plan update implementation, the Proposed Budget includes $1.4 million in FY 2023-24 and $1.3 million in FY 2024-25 for consulting support to update the City’s Municipal Code and Specific Plans.
FY 2023-24 also includes a $1.3 million increase in fuel costs to adjust for the inflation-driven natural gas price increases experienced at the beginning of 2023.
•Transfers to Other Funds include General Fund support to the Library Fund in the amount of $0.5 million for FY 2023-24 and $1.6 million for FY 2024- 25; the Stormwater Fund in the amount of $1.5 million and $3.0 million, respectively for implementation of mandated regulations; the Transportation Fund of $0.9 million and $1.0 million, respectively to cover the required fare box match in case the State legislature does not continue the pause on this requirement; the Public Financing Authority in the amount of $1.0 million annually for debt service; and $0.1 million transfer annually to the Community Recreation and Open Space Fund.
Library Fund
The Library Fund accounts for operations at the Grant R. Brimhall Library and Newbury Park Branch Library. The total Proposed Library Budget for FY 2023-24 and FY 2024-25 is $10.2 million and $11.2 million respectively, which includes salaries and benefits, M&O, and capital improvements.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Prior Year
Actual
FY 2021-22
Projected
Actual
FY 2022-23
Proposed
Budget
FY 2023-24
Proposed
Budget
FY 2024-25
Revenue
Property Tax 8,213,965$ 8,965,893$ 8,719,950$ 9,018,587$ Other Revenue 272,064 467,307 302,000 1,096,000
Transfers From Other Funds - - 500,000 1,640,958
Total Revenue 8,486,029$ 9,433,200$ 9,521,950$ 11,755,545$ Appropriations
Salaries and Benefits 5,643,117$ 5,559,825$ 6,632,181$ 6,864,539$ Maintenance and Operations 2,557,600 2,426,614 3,362,719 3,353,507 Total Operating Requirements 8,200,717$ 7,986,439$ 9,994,900$ 10,218,046$ Capital Improvements 150,243 122,686 250,000 987,500
Maintenance Improvements 61,244 35,863 - -
Total Estimated Requirements 8,412,204$ 8,144,988$ 10,244,900$ 11,205,546$ Reserve/(Use of Fund Balance) 73,825$ 1,288,212$ (722,950)$ 549,999$ Library Fund
Revenue: Library revenues are restricted for library operations and capital improvements. The Library Fund’s primary revenue source is property tax. The Library Fund receives a transfer from the General Fund to support capital improvements and operations as necessary. The General Fund transfer is budgeted at $0.5 million in FY 2023-24 and $1.6 million in FY 2024-25 for capital projects including sustainability improvements such as the solar project.
Appropriations: The majority of the Library Fund’s operating requirements are for salaries and benefits. The materials budget (primarily for the purchase of books) is included in Supplies/Equipment within M&O appropriations and is approximately $0.8 million annually.
Other Governmental Funds
Lighting Fund – The Lighting Fund provides for maintenance and improvements of the City’s traffic signal safety lighting and streetlights in the City’s Lighting Assessment District. Although the Lighting Fund has an overall deficit due to capital projects, operationally the fund is balanced. There is adequate fund balance available to fund the proposed capital projects.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Prior Year Actual FY 2021-22
Projected Actual FY 2022-23
Proposed Budget FY 2023-24
Proposed Budget FY 2024-25RevenueProperty Tax 2,027,544$ 2,080,615 2,102,700$ 2,162,700$ Special Assessments 472,700 496,052$ 525,000 540,000Other Revenue 75,603 38,721 48,194 48,511Transfers From Other Funds 99,178 100,000 92,000 27,200Total Revenues 2,675,025$ 2,715,388$ 2,767,894$ 2,778,411$ AppropriationsSalaries and Benefits 266,634$ 266,111$ 329,578$ 339,933$ Maintenance and Operations 1,800,605 2,009,572 2,278,227 2,177,921Total Operating Requirements 2,067,239$ 2,275,683$ 2,607,805$ 2,517,854$ Capital Improvements 26,816 62,382 671,000 352,500Maintenance Improvements 195,007 465,034 400,000 300,000Total Estimated Requirements 2,289,062$ 2,803,099$ 3,678,805$ 3,170,354$ Reserve/(Use of Fund Balance) 385,963$ (87,711)$ (910,911)$ (391,943)$ Lighting Fund
Revenue: The Lighting Fund receives revenue primarily from special assessments and ad valorem property tax. FY 2023-24 and FY 2024-25 revenues are budgeted at $2.8 million for each fiscal year.
Appropriations: The Proposed FY 2023-24 and FY 2024-25 Lighting Fund appropriations are $3.7 million and $3.2 million, respectively. The M&O budget is primarily for electricity costs to operate the traffic signals and streetlights. Also included are capital improvement and maintenance projects of $1.1 million and maintenance improvement projects of $0.7 million each year respectively.
Landscaping Fund – The Landscaping Fund provides for landscape maintenance and improvements within the City’s Landscape Assessment Districts. The Landscaping Fund has sufficient revenues to cover operating expenditures annually and sufficient fund balance to pay for proposed capital improvement projects.
Prior Year
Actual
FY 2021-22
Projected
Actual
FY 2022-23
Proposed
Budget
FY 2023-24
Proposed
Budget
FY 2024-25
Revenue
Special Assessments 4,819,337$ 5,100,000$ 5,400,000$ 5,600,000$ Property Tax 1,657,764 1,695,999 1,729,200 1,754,200
Other Revenue 269,263 153,699 196,375 196,375
Total Revenue 6,746,364$ 6,949,698$ 7,325,575$ 7,550,575$ Appropriations
Salaries and Benefits 847,445$ 899,195$ 1,191,768$ 1,246,616$ Maintenance and Operations 3,835,170 3,944,051 5,025,274 5,107,288 Total Operating Requirements 4,682,615$ 4,843,246$ 6,217,042$ 6,353,904$ Capital Improvements 28,360 427 915,650 2,592,500
Total Estimated Requirements 4,710,975$ 4,843,673$ 7,132,692$ 8,946,404$ Reserve/(Use of Fund Balance) 2,035,389$ 2,106,025$ 192,883$ (1,395,829)$ Landscaping Fund
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Revenue: The Landscaping Fund receives revenue primarily from special assessments and ad valorem property tax. FY 2023-24 and FY 2024-25 revenues are budgeted at $7.3 million and $7.6 million, respectively.
Appropriations: The Proposed FY 2023-24 and FY 2024-25 Landscaping Fund appropriations are $7.1 million and $8.9 million, respectively. The M&O budget is primarily for contracted landscape services and water costs. Also included are capital improvement projects of $0.9 million in FY 2023-24 and $2.6 million in FY 2024-25.
Stormwater Fund – The Stormwater Fund ensures the City implements the requirements of the National Pollutant Discharge Elimination System (NPDES) permit. The NPDES permit provides for regulations in the areas of illicit discharge/dumping response and abatement, public education and outreach, public infrastructure maintenance, construction site pollution controls, ongoing monitoring, and new development discharge controls.
Prior Year Actual FY 2021-22
Projected Actual FY 2022-23
Proposed Budget FY 2023-24
Proposed Budget FY 2024-25RevenueSpecial Assessment 136,280$ 138,265$ 139,000$ 139,000$ Other Revenue 444,543 445,000 353,900 353,900Transfers From Other Funds 194,906 264,583 1,708,677 3,252,447Total Revenue 775,729$ 847,848$ 2,201,577$ 3,745,347$ AppropriationsSalaries and Benefits 283,446$ 396,848$ 375,338$ 388,744$ Maintenance and Operations 428,355 401,000 526,239 556,603Total Operating Requirements 711,801 797,848 901,577 945,347Capital Improvements - - 300,000 1,700,000Maintenance Improvements 63,928 50,000 1,000,000 1,100,000Total Requirements 775,729$ 847,848$ 2,201,577$ 3,745,347$ Reserve/(Use of Fund Balance) -$ -$ -$ -$ Stormwater Fund
The primary revenue source for Stormwater is from special assessment fee revenue and sale of reclaimed water. The special assessment fee revenue comes from a countywide special assessment and can only be increased by a County- wide ballot measure. With NPDES permit costs continuing to rise, General Fund support of the Stormwater Fund is projected to continue to increase. The estimated transfer from the General Fund is $1.5 million for FY 2023-24 and $3.0 million for FY 2024-25, with an additional $0.3 million transfer from the Solid Waste Fund each year. While this is a challenge that all cities are facing, staff continues to work on identifying strategies to reduce the General Fund support for this program.
Street Improvement Fund – The Street Improvement Fund is for the improvement and maintenance of street infrastructure and sidewalks. Revenue comes primarily Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 from gasoline taxes, grants, and Transportation Development Act funds. The Proposed FY 2023-24 and FY 2024-25 revenue budget is $8.3 million for both fiscal years. Appropriations are included in the Proposed CIP Budget.
Grants Fund – The Grants Fund is where the City accounts for federal and state grant revenue for capital projects. The Proposed FY 2023-24 and FY 2024-25 revenue budget is $1.9 million and $1.0 million respectively. Appropriations are included in the Proposed CIP Budget.
Enterprise Funds
Water Fund – The City’s water system distributes up to 15 million gallons of water each day to serve more than 16,000 customers. With the exception of a few small areas outside City limits, the City distributes water to 37 percent of the geographical area within its incorporated boundaries. The Proposed FY 2023-24 and FY 2024-25 Water Operating and Capital Budget is $46.9 million and $47.2 million, respectively.
Prior Year Actual FY 2021-22
Projected Actual FY 2022-23
Proposed Budget FY 2023-24
Proposed Budget FY 2024-25
RevenueMetered Water Sales 23,248,121$ 16,020,000$ 25,800,000$ 27,700,000$ Base Charges 5,804,346 7,020,000 6,834,900 7,124,700Lift Charges 927,472 922,000 1,030,000 1,085,000Plant Investment Fees 553,320 85,500 250,000 250,000Interest Income (2,238,238) 308,600 809,000 809,000Miscellaneous Revenue 1,033,810 539,000 503,500 503,500Total Revenue 29,328,831$ 24,895,100$ 35,227,400$ 37,472,200$ AppropriationsSalaries and Benefits 3,573,778$ 4,960,000$ 5,541,101$ 5,773,897$ Maintenance and Operations 20,627,860 15,500,000 25,354,937 26,238,300Total Operating Requirements 24,201,638$ 20,460,000$ 30,896,038$ 32,012,197$ Capital/Depreciation 7,094,858 2,190,000 14,489,400 15,170,000Maintenance Improvements 840,343 2,260,000 1,475,000 -Transfers to Other Funds 86,461 - - -Total Requirements 32,223,300$ 24,910,000$ 46,860,438$ 47,182,197$ Reserve/(Use of Net Position) (2,894,469)$ (14,900)$ (11,633,038)$ (9,709,997)$ Water Fund (Operations/Capital)
Revenue: The Water Fund receives revenue primarily from metered water sales and base charges. Water Fund revenues are budgeted at $35.2 million FY 2023- 24 and $37.5 million for FY 2024-25.
Appropriations: Proposed FY 2023-24 and FY 2024-25 Water Fund Operating appropriations are budgeted at $30.9 million and $32.0 million, respectively.
Estimated capital and maintenance improvement requirements are $16.0 million Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 for FY 2023-24 and $15.2 million for FY 2024-25. The major M&O expense is for purchase of water from Calleguas Municipal Water District.
Wastewater Fund – Hill Canyon Treatment Plant (HCTP) serves more than 37,000 wastewater accounts and provides service to approximately 90 percent of the City. HCTP treats an average of 10.5 million gallons of wastewater per day. Proposed FY 2023-24 and FY 2024-25 Wastewater Operating and Capital Budget is $38.5 million and $31.0 million, respectively.
Prior Year Actual FY 2021-22
Projected Actual FY 2022-23
Proposed Budget FY 2023-24
Proposed Budget FY 2024-25RevenueService Charges 21,209,945$ 20,160,000$ 20,502,350$ 20,927,350$ Connection Fees 1,309,114 384,000 450,000 450,000Interest Income (2,815,585) 384,500 1,010,000 1,010,000Miscellaneous Revenue 831,984 935,500 1,351,900 1,356,900Total Revenue 20,535,458$ 21,864,000$ 23,314,250$ 23,744,250$ AppropriationsSalaries and Benefits 4,718,935$ 7,500,000$ 8,552,793$ 8,917,686$ Maintenance and Operations 8,649,729 10,450,000 12,629,632 12,120,446Total Operating Expenses 13,368,664$ 17,950,000$ 21,182,425$ 21,038,132$ Capital/Depreciation 1,150,498 14,870,500 14,454,400 5,300,000Maintenance Improvements 2,447,151 - 2,880,000 4,650,000Debt Service 2,035,130 2,035,200 - -Total Requirements 19,001,443$ 34,855,700$ 38,516,825$ 30,988,132$ Reserve Account 1,534,015$ (12,991,700)$ (15,202,575)$ (7,243,882) Wastewater Fund (Operations/Capital)
Revenue: The Wastewater Fund receives revenue primarily from residential and commercial service charges and capital revenue. FY 2023-24 and FY 2024-25 revenues are budgeted at $23.3 million and $23.7 million, respectively.
Appropriations: The Proposed FY 2023-24 and FY 2024-25 Wastewater Operating Budget is $21.2 million and $21.0 million, respectively. Capital and maintenance improvement appropriations are $17.3 million for FY 2023-24 and $10.0 million for FY 2024-25.
Solid Waste Fund – The Solid Waste Fund is responsible for the following programs: Recycling Program, Sustainability, Household Hazardous Waste Program, Community Enhancement Program, Caltrans Adopt-A-Highway Program, and the Community Enhancement Grant Program. In 2020, the City conducted a Request for Proposal (RFP) for waste hauler service providers.
Effective January 2022, the selected vendor, Athens Services, began providing consolidated waste service to residents and businesses in Thousand Oaks.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Prior Year
Actual
FY 2021-22
Projected
Actual
FY 2022-23
Proposed
Budget
FY 2023-24
Proposed
Budget
FY 2024-25
Revenue
Residential Recycling 678,111$ 796,500$ 1,200,000$ 1,248,000$ Commercial Recycling 862,908 759,000 870,000 904,800
Landfill Facility Fee 229,265 226,000 181,200 181,200
Temporary Drop Box & Bin 152,423 163,500 140,000 145,600 Interest Income (216,210) 35,000 76,000 76,000
Grants - Recycling and Hazardous Waste 76,802 62,000 48,000 48,000 Other Revenue 162,313 226,000 220,000 220,000
Total Revenue 1,945,612$ 2,268,000$ 2,735,200$ 2,823,600$ Appropriations
Salaries and Benefits 486,785$ 660,000$ 738,802$ 764,438$ Maintenance and Operations 872,507 891,000 1,237,336 1,310,546 Total Operating Requirements 1,359,292 1,551,000 1,976,138 2,074,984 Capital/Depreciation 31,127 424 780,000 -
Transfers to Other Funds 100,000 200,000 250,000 275,000 Total Requirements 1,490,419$ 1,751,424$ 3,006,138$ 2,349,984$ Reserve/(Use of Net Position) 455,193$ 516,576$ (270,938)$ 473,616$ Solid Waste Fund
Revenue: The Solid Waste Fund receives revenues from various sources including commercial recycling fees, landfill facility fees, residential recycling fees, temporary drop box and bin fees, and state grants for recycling and hazardous waste. Proposed revenues are budgeted at $2.7 million in FY 2023-24 and $2.8 million in FY 2024-25.
Appropriations: Proposed appropriations are budgeted at $3.0 million for FY 2023- 24 and $2.3 million for FY 2024-25 and include transfers of $250,000 and $275,000 to the Stormwater Fund for each fiscal year, respectively.
Transportation Fund – The Transportation Fund provides transportation services in the form of the Thousand Oaks Transit (TOT) bus system and Dial-A-Ride to the residents of the Conejo Valley to help reduce traffic, air pollution, and conserve energy resources. The Transportation Fund is also responsible for providing various transportation services to the City of Westlake Village (Los Angeles County), City of Agoura Hills (Los Angeles County), Oak Park (unincorporated Ventura County), and City of Moorpark. The bus and Dial-A-Ride services are provided by MV Transportation.
Based on the unprecedented impacts of the COVID-19 pandemic, state legislation was passed that provided relief for the farebox collection ratios required to obtain TDA funding. The Proposed Budget does not include the continuation of the farebox collection relief. However, Staff is monitoring potential legislation that could extend the relief into future years.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Prior Year Actual FY 2021-22
Projected Actual FY 2022-23
Proposed Budget FY 2023-24
Proposed Budget FY 2024-25RevenueSales Tax on Gasoline, SB325 2,091,612$ 6,280,000$ 5,260,500$ 5,260,500$ Federal and State Grants 3,696,899 1,725,000 2,250,000 3,250,000Non-City Bus Services 1,439,406 1,500,000 1,774,000 1,937,000Bus & Dial-A-Ride Fares 788 130,000 130,000 130,000Other Revenue 122,078 286,000 153,450 166,050Interest Income (297,050) 41,000 113,000 113,000Transfers From Other Funds - 350,000 850,000 1,000,000Total Revenue 7,053,733$ 10,312,000$ 10,530,950$ 11,856,550$ AppropriationsSalaries and Benefits 528,148$ 670,000$ 746,798$ 773,151$ Maintenance and Operations 5,844,417 7,405,000 7,823,611 8,439,903Capital Outlay 39,128 488,000 - -Total Operating Requirements 6,411,693 8,563,000 8,570,409 9,213,054Capital/Depreciation 1,010,433 530,500 8,471,500 5,650,000Total Requirements 7,422,126$ 9,093,500$ 17,041,909$ 14,863,054$ Reserve/(Use of Net Position) (368,393)$ 1,218,500$ (6,510,959)$ (3,006,504)$ Transportation Fund
Revenue: The Transportation Fund receives revenues from various sources, but primarily sales tax on gasoline, SB325, and state and federal grants. FY 2023-24 and FY 2024-25 revenues are budgeted at $9.7 million and $10.9 million, respectively. General Fund support is anticipated to be $0.9 million in FY 2023-24 and $1.0 million in FY 2024-25.
Appropriations: The City contracts with MV Transportation for the operation of the transit system. Proposed FY 2023-24 and FY 2024-25 appropriations are budgeted at $17.0 million and $14.9 million, which includes capital improvements of $8.5 million and $5.7 million, respectively. Although the Transportation Fund shows a deficit due to capital projects, the City anticipates receiving grant funding for the projects to offset costs. If the grant funding is not yet awarded, the grant is not included in the budget.
Theatres Fund – The Theatres Fund maintains and operates the Civic Arts Plaza’s two theatres:
•Fred Kavli Theatre – 1,800-seat performing arts theatre, hosts performances from the contemporary to the classic, including nationally renowned shows.
•Janet and Ray Scherr Forum Theatre – 400-seat community theatre and meeting site, caters primarily to performances by the local community, the bi-monthly City Council meetings, and other City functions.
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
6 5
5 Prior Year Actual FY 2021-22
Projected Actual FY 2022-23
Proposed Budget FY 2023-24
Proposed Budget FY 2024-25RevenueTheatre Rentals and Fees 1,560,419$ 3,280,000$ 3,704,600$ 3,765,100$ Alliance for the Arts 510,000 520,200 530,604 541,216Other Revenue 2,878,287 517,500 786,981 807,793Total Revenue 4,948,706$ 4,317,700$ 5,022,185$ 5,114,109$ AppropriationsSalaries and Benefits 2,731,232$ 2,300,000$ 2,417,348$ 2,505,142$ Maintenance and Operations 2,246,281 2,155,000 2,706,835 2,699,465Total Operating Requirements 4,977,513 4,455,000 5,124,183 5,204,607Total Requirements 4,977,513$ 4,455,000$ 5,124,183$ 5,204,607$ Reserve/(Use of Net Position) (28,807)$ (137,300)$ (101,998)$ (90,498)$ Theatres Fund
Revenue: The Theatres Fund receives revenue primarily from rentals and fees associated with performers’ use of the theatres. FY 2023-24 and FY 2024-25 revenues are budgeted at $5.0 million and $5.1 million respectively. Prior year actual revenue for FY 2021-22 included $2.9 million in federal grant revenue due to COVID-19.
Appropriations: Proposed appropriations are budgeted at $5.1 million and $5.2 million respectively. The City budgeted conservatively coming out of COVID-19 and it is hoped that revenue will come in higher than budgeted, eliminating the proposed deficit.
Golf Course Fund – Los Robles Greens Golf Course (LRGGC) is operated through a management agreement with Arcis Golf. The Golf Course Fund revenue budget is $8.7 million in FY 2023-24 and $9.0 million in FY 2024-25, with appropriations of $7.8 million and $8.3 million, respectively. An annual $100,000 transfer to open space is budgeted in both fiscal years.
Biennial Budget Preparation Timeline
•March 9, 2023 User Fees to Finance/Audit Committee
•March 14, 2023 User Fees Study Session
•March 30, 2023 Financial and Budget Update to Finance/Audit Committee •April 3, 2023 CIP Budget to Planning Commission
•April 4, 2023 CIP Study Session
•April 25, 2023 User Fees Public Hearing
•May 8, 2023 Operating Budget to Finance/Audit Committee •May 9, 2023 Operating Budget Study Session
•May 23, 2023 City Council Goal Setting Meeting
•June 6, 2023 Operating & CIP Budget Public Hearing •June 20, 2023 GANN Appropriation Limit
Item No.12A
Proposed FY 2023-24 and FY 2024-25 Operating Budget Study Session May 9, 2023
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5 Summary
The Proposed Budget represents a substantial yet strategic spending plan that is fiscally responsible, invests in maintaining the City’s aging infrastructure, prioritizes sustainability, and includes new positions based on key ongoing, customer-focused initiatives, with a structurally balanced General Fund.
The City has emerged from the COVID-19 pandemic in a financially stable and healthy position. Continued research, education, and progress will be made toward the future vision of the City as determined through the comprehensive General Plan Update. Strategic, long-term financial planning is a cornerstone of these efforts as the City maintains its aging infrastructure, increases efficiencies, modernizes technology, and continuously evaluates expenditures while providing quality services to the public.
There continues to be a significant amount of uncertainty with the state of the global economy amid historic inflation. While this Proposed Budget provides strategic investments toward the future, projections have been made conservatively in order to remain agile and resilient should a recession occur over the next two fiscal years.
Staff will continue to monitor the City’s revenues and expenditures to ensure that any material changes are communicated to City Council. Staff will also continue to take proactive steps to ensure strong financial health for the City in the future.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
B. Provide municipal government leadership which is open and responsive to residents, and is characterized by ethical behavior, stability, promoting public trust, transparency, confidence in the future, and cooperative interaction among civic leaders, residents, business representatives, and staff, while recognizing and respecting legitimate differences of opinion on critical issues facing the City.
PREPARED BY: Carrie Matson, Deputy Finance Director
Ryan Roman, Sr. Financial Analyst
Document Provided Under Separate Cover:
#1 – Proposed FY 2023-24 and FY 2024-25 Operating Budget FIN:330-20\cm\H:\COMMON\ADLFR\Budget\Budget 2023-2025\05092023 Operating Budget Study Session.docx Item No.12A
THOUSAND OAKS CITY COUNCIL
Supplemental
Information
Packet
Agenda Related Items - Meeting of May 9, 2023
Supplemental Packet Date: May 9, 2023
5:00 p.m.
Supplemental Information:
Any agenda related public documents received and distributed to a majority of the City Council after the Agenda Packet is printed are included in Supplemental Packets. Supplemental Packets are produced as needed, typically a minimum of two—one available on the Thursday preceding the City Council meeting and the second on Tuesday at the meeting. The Supplemental Packet is available for public inspection on the City’s website at toaks.org/agendas or by contacting the City Clerk Dept at (805) 449-2151 during normal busi- ness hours [main location pursuant to the Brown Act, G.C. 54957.5(2)].
Americans with Disabilities Act (ADA):
In compliance with the ADA, if you need special assistance to participate in this meeting or other services in conjunction with this meeting, please contact the City Clerk Department at (805) 449-2151. Assisted listening devices are available at this meeting. Ask City Clerk staff if you desire to use this device. Upon request, the agenda and documents in this agenda packet, can be made available in appropriate alternative formats to persons with a disability. Notification at least 48 hours prior to the meeting or time when services are needed will assist City staff in assuring reasonable arrangements can be made to provide accessibility to the meeting or service.
Item No.12A
TO COUNCIL: 5/9/2023
MEETING DATE: 5/9/2023
Name City Item # In favor/ Oppose Comment
N/APaul Blakelock Newbury Park 12A I would like the city to budget for a study on the impact of new development on traffic and other infrastructure issues south of the freeway near Borchard Road.
We were told that during the General Plan meetings that, although changes allowing higher density developments were being made, the GP process was "not the time" to address traffic concerns.
As a resident that is not involved in the planning process, common sense told me that infrastructure issues such as traffic, sewer, electrical, etc. would be reviewed as part of the approval process for each potential development. Then I realized that I was relying on common sense, so looked a little deeper.
After the General Plan is approved, it seems that there is no time or place where these issues are addressed before allowing a development. They might be considered, but it's too late to mandate fixes.
I've seen this game before, with building height restrictions. Once the heights were approved, there was no way to stop a developer from building to the maximum allowed height. Actually there was one way: negotiate. The city needed to allow the developer concessions to, for instance, remove more oak trees than would normally be allowed, in order to convince them not to build to full height.
Why am I bringing this up during the budget process? I'm told that traffic concerns are addresses during the budget process. And because I don't see any other time to do it.
Many people are concerned with traffic on Borchard Rd. near the 101 freeway, at both the Michael Dr. and Newbury Rd. intersections. It is a mess now, and the new developments that potentially will be allowed to the west near Michael and to the east near Newbury will cause complete gridlock. In the past I have had to wait three light cycles to get to the freeway due to the backed up traffic.
It's easy to imagine the reason that traffic concerns won't be addressed: Since no new developments have been approved, and might never be approved, improvements won't be made for traffic that may never materialize. But then again, they might materialize. Isn't that what planning is about? We don't need the details on which developments will eventually be there in order to do a study on possible infrastructure solutions. These studies take time, so it's too late when the building proposals start. Let's not pretend that some developers aren't ready to go the moment that the General Plan allows them to.
Another reason to start early is that our hands are tied by the control that Caltrans has in that area. We should have a plan in place as soon as possible to get them on board if need be. More likely, knowing how slow Caltrans moves, we should consider the traffic flow with the assumption that the area under their control won't change for at least 10 years.
In summary, I would like to see a study on how traffic can be improved before any new major developments in the area are approved. Even better would be to see the study before the General Plan is approved so these obvious impacts could be taken into consideration.
We need to budget for it now because we know that development is coming. Having numbers ready to justify what costs to pass on to developers seems like good basic planning.
Paul Blakelock
Item No.12A
TO:City Council
FROM:Kevin McNamee, Mayor
Bob Engler, Councilmember
David Newman, Councilmember
DATE:May 9, 2023
SUBJECT: League of California Cities Leaders Summit- April 12-14, 2023 RECOMMENDATION:
1. Receive report.
2. Find that this action is not a project as defined under the California Environmental Quality Act (CEQA).
FINANCIAL IMPACT:
No Additional Funding Requested. Direct and indirect costs are included in the Adopted FY 2022-23 General Fund Budget.
BACKGROUND:
The League of California Cities (Cal Cities) is an association of California city officials who work together to enhance their knowledge and skills, exchange information, and combine resources so that they may influence policy decisions that affect cities.
Founded in 1898 on the principles of local control and interagency cooperation, Cal Cities has grown from a handful of public officials to include the voluntary membership of 478 California cities. Cal Cities and its member cities are working hard to strengthen the effectiveness of their advocacy efforts. Cal Cities’ mission statement reflects this commitment to "restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians." DISCUSSION/ANALYSIS:
Item No.16A
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1 Cal Cities offers year-round education and networking opportunities for new and seasoned city leaders. Comprehensive, specialized programs allow officials to learn about new developments in their field while exchanging ideas on solutions to common challenges. Cal Cities held its second City Leaders Summit at the SAFE Convention Center in Sacramento. The purpose of the summit was to bring city officials together to influence policy decisions in the Capitol and gain top-notch leadership skills. This pinnacle event offers city officials exceptional opportunities to meet with legislators to advocate for cities’ top priorities, as well as participate in peer-to-peer discussions and in-depth sessions covering topics ranging from leadership to emerging issues facing cities. The summit allows city officials to learn about key legislative issues and meet with their State Legislative members in the Capitol. Mayor Kevin McNamee, Councilmembers Robert Engler and David Newman, and Legislative Affairs Manager Mina Layba attended.
I. MEETINGS WITH STATE LEGISLATIVE REPRESENTITIVES
On Wednesday, April 12, 2023, meetings with state elected members were conducted by Mayor McNamee, Councilmembers Engler, and Newman, and Legislative Affairs Manager Layba. City delegation discussed Cal Cities 2023 Priorities (Attachment #1) and discussed specific bill interests.
In accordance with the Brown Act and rules governing quorum, only two Councilmembers attended each meeting as noted.
•Elissa Ouchida, Legislative Director for Assembly Member Muratsuchi: City representatives discussed AB 1035 regarding rent control for mobile homes, AB 1538 concerning climate change catalyst, and AB 1708 regarding amendments to Prop 47 related to theft. (Mayor and Councilmember Engler)
•Gil Topete, Legislative Director for Senator Stern: City representatives discussed SB 717 concerning a diversion program for criminals with mental health issues and discussed SB 572 regarding the implementation of better planning by natural gas utilities to prevent spikes in pricing. (Mayor and Councilmember Newman)
•Assembly Member Jacqui Irwin, Chief of Staff Brett Williams, and Legislative Director Brandon Bjerke: Representatives from the Assembly Member’s Office discussed AB 1637 on government websites transitioning to “.gov.” (Mayor and Councilmember Engler)
II. CITY LEADERS SUMMIT
A. Welcome
Item No.16A
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1 Executive Director Carolyn Coleman and Legislative Director Melanie Perron welcomed attendees and reviewed the schedule for the City Leaders Summit.
They provided an overview of the legislative cycle. For the first year of the legislative biennium, a historic 2,600 bills were introduced. This is more than any legislative cycle. The legislature had 30 percent new members sworn in. In fiscal year 2022, the State had a $100 billion surplus, and now has a growing $27 billion deficit.
The 2023 Cal Cities Priorities were introduced:
1. Protect and expand investments to prevent and reduce homelessness.
2. Increase the supply and affordability of housing while retaining local decision-making.
3. Improve public safety in California communities.
4. Safeguard essential local revenues and support fiscal sustainability.
A recent survey on cities’ involvement in homelessness was presented. According to the data, limited affordable housing and ongoing funding are the barriers to addressing homelessness. Approximately 84 percent of cities report that they have implemented homeless programs and 79 percent report that they have used general funds to implement these programs. Finally, 84 percent of cities report they have long-term fiscal concerns about maintaining homeless support programs. As part of the Cal Cities priorities, they are seeking funding from the state budget. The request is $3 billion in continual funding for affordable housing and homeless programs for local governments.
In addition to affordable housing and homeless programs, Cal Cities is asking the legislature for reimbursements for unfunded mandates. The state owes nearly $1 billion to local governments for two decades worth of costs related to state- mandated programs.
B. Presentation by Cal Cities Lobbyists
Cal Cities lobbyists presented an update on key legislative bills. Hundreds of bills are currently being heard in committee that impact local government.
Housing:
•SB 891: This bill would require cities to allow two-story accessory dwelling units.
Item No.16A
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1 •SB 423: This measure would permanently modify and expand SB 35 provisions that allow certain multifamily housing developments to take advantage of a streamlined, ministerial approval process. •AB 1630: This measure would override existing zoning and development standards by requiring a city or county to ministerially classify student or faculty and staff housing as a permitted use on all real property within 1,000 feet of a university campus.
Transportation:
•AB 2120: This bill would seek to prioritize State funding received under the Infrastructure Investment and Job Act for local bridges.
Community Services:
•SB 929: This bill would collect data about involuntary detentions related to mental health concerns.
•SB 1154: This bill would create an online registry of available beds in psychiatric facilities.
Environmental Quality:
•AB 1985: This bill would create an online database of organic waste products on the market to enable local governments to connect with local farmers and community members seeking their products.
C. The Shared Path to Preventing and Reducing Homelessness CA State Association of Counties (CSAC) hosted their legislative action conference at the same time as Cal Cities. CSAC and Cal Cities hosted a joint session featuring panels of cities, counties, and legislative members sharing their perspectives on homelessness. Key points raised:
•There is a need for ongoing permanent funding and support for cities. •Local government and State need to work together.
•Focus should be on underlying issues such as mental health, substance abuse, and addressing conservatorship programs and longer holds in hospitals or jails.
•State needs to streamline assistance. There are 30 different programs run by nine agencies. Implementing local programs often requires funding from 15 different funding sources.
Item No.16A
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1 •One size fits all approach does not work. State needs to give local agencies greater flexibility.
D. Opening Session: Get Them to “Yes!” - Persuasive Critical Communication Skills for City Leaders
Opening keynote speaker, Tracy Miller, former prosecutor and communications coach, provided tips for how City Councils can get to consensus or “yes.” •Deal with the issue and let it go. Do not hold on to bad feelings or the past. •Take a pause when you are angry or upset.
•Resolve conflict in person or through a phone call. Do not use social media or texts.
•Conflict is healthy. Do not attack a person’s character, looks, or family. •Adopt a positive mindset.
•Be mindful of language used.
•Begin with what the group agrees on.
•Be curious not judgmental.
•Stay professional.
•Attitude is everything.
E. Strategies for Local Governments to Prevent Organized Retail Crime A panel consisting of speakers from the California Highway Patrol Organized Retail Crime Task Force, Rite Aid, and California Retailers Association provided a broad overview of organized retail crime (ORC). In 2021, California ORC lost $3 billion in tax revenue while retailers suffered $19 billion in losses. ORC is linked to other organized crime. “Boosters”—or the front-line thieves—resell stolen goods to “fences”—or illicit vendors—who resell items at flea markets, convenience stores, or even online. High-end boosters can make as much as $3 million a year. The top stolen products are designer clothing, designer purses, detergent, liquor, and allergy medicine. High-level fences make their money by reselling products to stores in warehouses or online platforms. Retail stores are adding more theft- detection devices to their products.
F. Future of Homekey: Motel Conversions Over the Next 10 Years Speakers representing housing authorities from Anaheim, Sacramento, and Orange County were joined by CA Department of Housing Branch Chief on Homelessness to discuss the successes and considerations of developing Homekey Projects. Interested cities should determine available motels in their community. They should assemble a budget, examine all available funding streams (veterans funding, vouchers, etc.), and the cost for renovations and Item No.16A
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1 providing services. Cities should consider a developer who is already knowledgeable about conversions and grants. Community partnerships will help identify resources. Homekey projects are faced with several challenges including vocal community opponents, displacement of long-term motel tenants, construction delays, and added costs from unexpected structural issues.
G. Navigating Housing Challenges Associated with Short-Term Rentals Dustin Reilich, Vice President of Government Relations for Deckard Technologies shared ways cities can work with short-term rentals (STR). STRs are a $500 billion industry and growing. After COVID-19, more people are traveling and working from home, making the option to work from travel destinations popular. In 2023, 98,000 properties were featured on over a hundred websites. STRs are supposed to identify themselves to the local jurisdictions and comply with all business practices including payment of Transit Occupancy Tax (TOT). Cities have a number of options: (1) they could consider having online platforms collect and remit TOT or (2) collect TOT themselves. The speaker suggests cities should (3) leverage professional support from companies who have the data and software to monitor STR activity, collect data, and support TOT collection.
H. Best Practices in Addressing Illegal Dumping
Taylor Grimes, Special Projects Coordinator of the Mattress Recycling Council, shared best practices for resolving illegal dumping—specifically furniture and mattresses. Strategies include collaborating with stakeholders, creating awareness and engagement through education, providing waste disposal options (free bulky pick-up, drop-off centers, or events), and strengthening enforcement with greater surveillance to help identify perpetrators. The Mattress Recycling Council is working with other industries to help create an extended producer responsibility program. When new mattresses are delivered from a store, old ones are taken away and recycled.
I. Surplus Land Act and its Housing and Land Use Impacts A panel facilitated by Larry Kosmont, CEO of the Kosmont Companies, provided an overview of the Surplus Land Act (SLA) and how to apply it. Due to the housing shortage, new state bills have been adopted to address the crisis through SLA.
SLA requires local agencies to make land available for affordable housing before selling or leasing the land for another purpose. The panel recommends cities survey and catalogue potential properties, determine how SLA applies to each property, and work with the State Housing and Community Development on required documents and processes.
J. Universal Inclusionary Housing
Item No.16A
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1 Ethan Walsh, Attorney from Best Best and Krieger, and Rob Wiener, Executive Director for CA Coalition for Rural Housing, discussed inclusionary zoning and ways cities can fund the development of more affordable housing. They covered the following: (1) parcel tax, (2) tax phased over time, (3) on-site affordable housing within a development, (4) in-lieu fee, and (5) transfer tax alternative. Speakers also shared incentives to offset developer costs including density bonus, flexible design, subsidies, fee deferrals, and fast-track processing.
K. How Cities Can Fight Crime with Civil Litigation
Ryan Griffith, former City of Vallejo Neighborhood Law Attorney and Adam Abel, Assistant City Attorney Santa Rosa, shared abatement options for cities dealing with drug houses, illegal businesses, illegal casinos, and criminal activity. Although cities have the tools to use fines and citations, nuisances often require civil litigation. Speakers presented case studies on how to apply legal remedies such as (1) drug abatement, (2) red light abatement, and (3) receivership.
L. Closing Session: “Citizens, Cities, Resilience: Engage the Never Give Up Mindset”
Scott Lesnick shared methods for being more resilient by recounting his personal journey of having his children kidnapped to the Middle East. The speaker shared ways for council members to manage and reduce stressful situations: self-care (eating and sleeping), deep breathing, opening up to others, and allowing people to assist. He shared a thumb and index finger pressure point technique and emphasized that the power of music helps increase dopamine which creates a feeling of euphoria.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
B. Provide municipal government leadership which is open and responsive to residents, and is characterized by ethical behavior, stability, promoting public trust, transparency, confidence in the future, and cooperative interaction among civic leaders, residents, business representatives, and staff, while recognizing and respecting legitimate differences of opinion on critical issues facing the City.
PREPARED BY: Mina Layba, Legislative Affairs Manager
Attachment:
Attachment #1 – Cal Cities 2023 Priorities
Item No.16A
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1 CMO:150-20\wl\H:\COMMON\City Council\Council Items\2023 Staff Reports\050923\2023 League of California Cities Leaders Summit Staff Report
Item No.16A
Cities throughout the state are working hard to cobble together short-term funding opportunities to fund innovative solutions that prevent and reduce homelessness in their communities. However, the lack of a permanent home in the state budget for cities to address homelessness inhibits cities’ long-term planning efforts and stifles more ambitious goals. The Legislature must appropriate funding that matches the scale of this crisis and recognize that successful program implementation and outcome reporting takes time. Cities fully support pairing funding and resources with reasonable accountability and transparency measures.
Legislative priorities for cities
$3 billion annually to help cities reduce homelessness and increase housing supply. SUPPORT Cal Cities is calling for $3 billion in ongoing, permanent funding to prevent and reduce homelessness and boost the supply of affordable housing.
SB 43 (Eggman) Behavioral Health. SUPPORT
This measure would update California's conservatorship law by expanding the definition of "gravely disabled" to include conditions that result in a substantial risk of serious harm to an individual's physical or mental health. The current law’s high threshold makes it difficult to provide treatment for individuals who are unable to care for themselves.
SB 363 (Eggman) Facilities for Inpatient and Residential Mental Health and Substance Use Disorder:
Database. SUPPORT
This measure would establish a real-time dashboard about available beds in psychiatric and substance abuse facilities. This dashboard would connect individuals to care more quickly and help reduce extended emergency room stays.
Why these priorities matter to cities
• Cities are proactively responding to the growing homelessness crisis, providing temporary and emergency housing and partnering with counties to help connect individuals with behavioral health services.
• I n the fac
e of a looming economic recession, now is not the time to cut back or delay much-needed homelessness funding. Instead, the state must double down on long-term investments to prevent and reduce homelessness and support our collective efforts. • Cities need a permanent funding stream of $3 billion annually to provide emergency and temporary shelters, build permanent supportive housing, and subsidize the development of affordable housing to meet state and local goals.
• Fo r uns
heltered individuals with severe behavioral health needs, access to a comprehensive care system is an essential component of addressing their housing needs and long-term stability. Cal Cities is proud to support SB 43 and SB 363, which will expand access to needed services and connect individuals to care more quickly.
Protect and expand investments to prevent and reduce homelessness. 2023 Cal Cities Advocacy Priority
ATTACHMENT #1
Item No.16A
Responding to Homelessness
How California cities are making real progress
The recent, sharp rise in the number of Californians experiencing homelessness is now reaching crisis proportions. Most of these individuals experiencing homelessness are concentrated in cities.
In the last few years, cities have accelerated their efforts to find innovative solutions to prevent and reduce homelessness. Local leaders are forming public-private partnerships, collaborating closely with residents and community groups, and cobbling together a patchwork of funding to deliver emergency shelters, permanent supportive housing, and a wide array of other wraparound services.
However, in many cities — even with new investments and accelerated efforts — the number of people falling into homelessness is outpacing the number of people cities are able support. Cities need a permanent home in the state budget to be able to address this crisis.
The cities below are a small sampling of those throughout the state that are making progress in supporting and reducing the number of unhoused individuals in their communities. Their work provides insights into what works to prevent and end homelessness.
Bakersfield
Since 2020, Bakersfield has invested millions of city, county, and state dollars to support individuals experiencing homelessness, provide housing, increase staffing, and expand wraparound services. This influx of funding has seeded projects such as a new 150-bed navigation center and 70 more beds at existing shelters. An additional 118 navigation center beds, the creation of a countywide Homeless Action Plan, the expansion of street outreach teams, and more direct behavioral health supportive services at the city’s four homeless shelters are all underway.
Corona and Norco
In 2020, Corona adopted its Homeless Strategic Plan, with the mission of forming public-private partnerships with dozens of local nonprofits and faith-based organizations to deliver a broad spectrum of services to people experiencing homelessness. The plan soon led to a joint program with the smaller, neighboring city of Norco. A statewide nonprofit provides outreach services, case management, support services, and a path to permanent housing in both cities. The program’s impact was immediate:
Homelessness in Corona has decreased by 33% since 2020. In Norco, 26% of the program participants have moved into permanent housing. This unique joint program, funded by state, federal, and local dollars, has served as a model for other cities in California.
Eureka
Eureka has significantly reduced the number of unhoused residents through Uplift Eureka, a pioneering program that combines an array of social services. Through streamlined services and expanded partnerships with dozens of community-based organizations and government agencies, Eureka’s capacity to give people the support they need has vastly increased. Uplift Eureka focuses on four areas:
housing assistance, resume and interview skill development, job training, and outreach. Since its inception in 2019, the program has raised more than $3 million in grants, including a cornerstone $1 million federal Emergency Solutions Grant, and reduced the number of people experiencing homelessness by roughly 25%.
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Hayward
The number of people experiencing homelessness in Hayward fell by 22% from 2019 to 2022, due in large part to the city’s first Housing Navigation Center and motel conversion project. The center, staffed and managed by a local nonprofit, provides a host of services, including outreach, short -term housing, intensive case management, and housing placement services for people living in encampments. The center is funded through several revenue streams, including the voter-approved state Safe Neighborhood and School Fund, the American Rescue Plan Act, and the city’s General Fund/Community Development Block Grants.
Paramount
For cities with few resources, connecting people with existing systems of care is key to reducing homelessness. Paramount’s strategy revolves around coordinating services with public agencies and community nonprofits. The city has also passed several affordable housing incentives. These efforts have been remarkably successful; the number of unhoused residents has plummeted by 56% since 2019. One such partnership with a local nonprofit and the Paramount Unified School District has directly aided 27 Paramount families and permanently housed 10.
Redlands
In March 2022 Redlands received $30 million in state Homekey funding to convert a former motel into housing for chronically homeless people. Six months later, the first of 100-plus residents began moving into the studio apartments. The Governor and federal homelessness experts have lauded this unprecedented speed of construction, which Redlands credits to strong public-private partnerships. The city worked closely with a company to remodel the motel and manage the property, and a local nonprofit provides supportive services.
San Diego
San Diego has successfully secured a variety of funding sources to prevent and reduce home lessness on multiple fronts. In the last two years, the city received $27.5 million in state Homeless Housing, Assistance and Prevention grant funding, as well as an additional $11.8 million in Homekey funding. San Diego County also granted $5 million to three cities, including San Diego, to collaboratively bring more shelter options online and connect more people to services. The results have been striking. In six months, San Diego increased its shelter beds capacity and street outreach by 28%. In 2022 alone, the city also connected more than 1,470 people experiencing homelessness to permanent or longer-term housing.
The cities of San Mateo County
A city cannot solve homelessness by itself. It requires the political will of several government entities, as well as the support of the entire community. In San Mateo County, 20 cities, the county government, and community leaders banded together to educate and raise the awareness of residents about the urgent need for permanent supportive housing. The result? Since 2021, 733 formerly homeless households have moved into permanent housing. To date, more than 300 new units of interim and permanent housing have gone up, and a navigation center is slated to open in 2023, with 240 beds for interim housing — a 91% increase from 2019.
Item No.16A
Housing
www.calcities.org
California has a growing housing supply and affordability crisis. Cities are working in overdrive to find solutions to build homes at all income levels. They’re taking on these efforts all while navigating the state’s 100+ recent housing bills that, in some cases, serve as barriers for cities to successfully increase housing supply. Cal Cities’ approach to addressing the current housing crisis is two-fold: 1) ensure that cities have the funding they need to address the housing affordability crisis, and 2) ensure state laws support cities’ efforts to boost housing supply while respecting local decision- making authority so cities can build solutions tailor-made for their communities.
Legislative priorities for cities
$3 billion annually to help cities increase housing supply and prevent homelessness. SUPPORT The state must bolster local government efforts to support our most vulnerable residents through ongoing, permanent funding to prevent and reduce homelessness and boost the supply of affordable housing.
SB 423 (Wiener) By-Right approval of multifamily housing developments: SB 35 (Chapter 366, Statutes of 2017). OPPOSE
This measure would permanently modify and expand SB 35 provisions that allow certain multifamily housing developments to take advantage of a streamlined, ministerial approval process. The expansions include applying to the coastal zone, allowing the state to approve developments on state property, and prohibit a city from enforcing its inclusionary housing ordinance if the income limits are higher than those in SB 35.
AB 1630 (Garcia) By-right approval of student or faculty and staff housing projects. OPPOSE This measure would override existing zoning and development standards by requiring a city or county to ministerially classify student or faculty and staff housing as a permitted use on all real property within 1,000 feet of a university campus.
Why these priorities matter to cities
• A maj
or obstacle for cities to effectively plan and zone for more housing is the state’s unrelenting push to legislate how cities do this, especially when many recent laws disregard local decision-making and community involvement. New, unproven, and overreaching policies are not what is needed.
• C ali
fornia will never produce the number of homes needed with an increasingly state driven, by-right housing approval process. What is really needed is a sustainable state investment that matches the scale of this long-term crisis. • Rather than continuing to pursue top-down, one-size-fits-all legislation, lawmakers should partner with local officials to help invest in cities. Targeted, ongoing funding of $3 billion is the only way cities can find community-based solutions that get our residents off the streets and keep them in their homes.
Increase the supply and affordability of housing while retaining local decision-making.
2023 Cal Cities Advocacy Priority
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Item No.16A
Boosting Affordable Housing
How California cities are making real progress
www.calcites.org
On any given day, newspaper headlines in California and across the nation are highlighting the state’s growing housing supply and affordability crisis. Seven in ten Californians view housing affordability as one of the top problems in their community, and there is growing concern from residents that housing prices are so expensive, younger generations will be priced out of ever being able to buy a home.
Cities are working hard to develop solutions that spur housing production so Californians of all income levels have a place to call home. They’re taking on these difficult and complex tasks all while navigating the state’s annual barrage of housing bills that, in some cases, serve as barriers for cities to successfully grow affordable housing supply. The cities below are just a few examples of communities creatively leveraging partnerships, community input, and multiple funding sources to significantly increase affordable housing.
Alameda
Alameda, a city historically resistant to new development, became the first Bay Area city in 2022 to adopt an ambitious, state-certified housing plan. The plan, created with substantial input from residents, businesses, and other stakeholders, is to build more than 5,300 homes and apartments. The state commended Alameda for its leadership in taking concrete action to close the housing availability gap.
Baldwin Park
Baldwin Park teamed up with Habitat for Humanity to increase its affordable housing supply. The city has earmarked $5 million in American Rescue Plan Act funding for housing acquisition and rehab, which Habitat for Humanity is using to repair homes — with a special focus on those owned by senior citizens — as well as purchase homes, repair them, and sell them to families at below-market value. The initiative’s creative financing and partnership, coupled with a leading national affordable housing group will, y ield 40 to 50 new affordable homes for low-income families.
Banning
This Riverside County city hopes to nearly double in size in the coming decade. To turn into a more vibrant, walkable 21st century city, Banning has prioritized the creation of affordable housing. In 2020 and 2021, the city issued nearly 1,000 new residential permits and approved a new master-planned development. With nearly 500 homes completed and another 4,000 in the pipeline, the development alone will increase the city’s housing stock by roughly a third. An additional 8,500 other homes are in various stages of development.
Emeryville
For decades, the small Bay Area city of Emeryville was mostly zoned for commercial and industrial use.
However, as the state’s affordable housing crisis deepened, Emeryville reversed course and prioritized housing. Approximately 1,100 housing units are in the pipeline, 35% targeted for low -income residents. One way Emeryville jumpstarted affordable housing construction was by creating a development bonus code, which grants developers who meet or exceed the city’s affordable housing requirements and include other community benefits, such as increased parking and density.
Merced
From 2008 to 2016, only 200 new homes were built in Merced. From 2019-2021, the Central Valley city averaged 700 new single-family homes and 400 multifamily per year — with many more on the way. In 2022, the city was awarded $31 million from the state to help build two affordable housing complexes,
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which will include 264 new multifamily homes. Merced has also partnered with several nonprofits, banks, government entities, and development companies to further grow housing supply. Officials estimate these partnerships will yield 600 additional affordable units in the coming years.
Nevada City
Rural communities must contend with many extra challenges when developing housing, including reduced access to funding, workforce shortages — and in the case of Nevada City — wildfire risks, higher associated insurance costs, and a lack of buildable terrain. Until the opening of Cashin ’s Field — 51 units for extremely-low, very-low, and low-income families — the last large multifamily housing built in Nevada City was in 2001. The city financed the project by cobbling together a variety of public and private funds. With the project, Nevada City exceeded its state-mandated low-income housing requirement.
Pomona
In 2022, Pomona adopted a new set of housing and land use policies to address the widening affordable housing gap. The multi-faceted toolbox includes the adoption of an inclusionary housing ordinance, the aggressive pursuit of regional, state, and federal grant opportunities, various policy reforms, and a streamlined building permit process. As of 2023, the city had over 2,500 total units in the development pipeline, including several 100% affordable housing projects.
Redding
Redding’s affordable housing crisis was exacerbated by a wildfire that destroyed more than 1,000 homes in 2018. In response, the city helped spur several notable affordable housing projects thanks to a creative mix of financing and partnerships. As of mid-2022, Redding had added 82 units for low- and very low- income residents at the Downtown Market Center Apartments, with another 79 affordable and 15 market - rate units in the pipeline. Redding is also at the forefront of a potential cost -saving construction measure: It was the first city in California to approve the construction of an on-site, 3D-printed, single-family home.
Sacramento
In 2022, Sacramento became the first city in California history to receive the state’s “prohousing designation,” reflecting the city’s efforts to speed up housing production among a dire shortage of affordable homes. To expedite and encourage housing development, the city is waiving fees for affordable housing construction, allowing by-right housing in commercial corridors, expediting approvals for accessory dwelling units, and reducing or eliminating parking requirements. The designation give s the city an advantage in applying for state and federal grants and tax credits for affordable housing projects.
Santa Ana
Santa Ana took an equity-centered approach when it transformed one of its oldest neighborhoods into an affordable housing community for families earning between 30 and 60% of the area median income . The city focused on the needs and history of the neighborhood, ensuring that neither businesses nor residents were displaced. The community features many amenities, including an outdoor open space and a revitalized commercial center. The project was funded by multiple sources, including $6 million in city resources.
Santa Monica
In 2022, Santa Monica launched a pilot program prioritizing affordable housing for families displaced by urban renewal policies of the 1950s and ‘60s. The city-funded program, initially open to 100 displaced, low- income families or their descendants, gives priority access to below-market rent apartments. Santa Monica is one of a handful of cities nationwide attempting to compensate the more than a million people impacted by racist urban renewal policies. The city is also funding several affordable housing projects.
Item No.16A
Public Safety
www.calcities.org
Public safety in our communities continues to be a top concern for Californians. Recent legislative efforts and ballot measures promised safer neighborhoods, but the unintended consequences that followed have undermined that promise. Our communities deserve better, and cities are more than ready to find solutions that address crime, its underlying causes, and improve public safety.
Legislative priorities for cities
AB 1708 (Muratsuchi) Theft. SUPPORT
This measure would amend Proposition 47 to increase accountability for repeat offenders as well as access to participate in rehabilitation services.
AB 367 (Maienschein) Controlled Substances: Enhancements. SUPPORT This measure would add sentence enhancement of 3-5 years on a person who inflicts great bodily injury when they sell, furnish, administer, or give away a controlled substance and the person who intakes that substance suffers a significant or substantial physical injury from using the substance.
Why these priorities matter to cities
• Acc
ording to a February 2023 study conducted by the Public Policy Institute of California, a strong majority of Californians worry they or a family member will be a victim of a crime. • M ent
al health and substance use treatment programs are essential to lowering recidivism rates and increasing community wellness.
• R edu
cing fentanyl deaths is a top priority for cities and we urge the state to partner with us on finding solutions.
• C iti
es strongly support increased accountability for those who continue to create victims throughout our communities, including those who are distributing fentanyl.
Improve public safety in California communities.
2023 Cal Cities Advocacy Priority
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Item No.16A
Fiscal Sustainability
www.calcities.org
Every day, city officials throughout California are delivering essential services to residents and finding viable solutions that address the twin crisis of housing and homelessness in the state. Our residents depend on these core services, which cannot be successfully delivered without fiscal sustainability.
In the face of a looming economic recession, with 80 percent of Californians living in cities, fiscal sustainability for cities should be a top priority for the Legislature. Local governments are on the front lines protecting our state’s most vulnerable residents and are essential to the strength of California’s economy.
Legislative priorities for cities
Invest $1 billion to reimburse local governments for unfunded state mandates. SUPPORT The state owes nearly $1 billion to local governments for two decades worth of costs related to state-mandated programs.
Any proposed reduction, elimination, or diversion of essential local revenue sources. OPPOSE Cal Cities opposes any action that would reduce or eliminate funding for cities or divert essential local revenue sources. Siphoning local revenues will only weaken the fiscal condition of local governments and compound the state’s financial challenges.
Why these priorities matter to cities
• Cities a
re the foundation of California’s robust economy. The vitality of local governments is dependent upon fiscal stability.
• The state owes nearly $1 billion to local governments for state mandates incurred after 2004.
• Lo cal gove
rnments depend on the state to reimburse them in a timely manner for these costs. Failing to pay for these costs threatens the stability of local budgets and the ability of local governments to fund essential services to the community. • I n the face
of a looming economic recession, Cal Cities opposes any action that would reduce or eliminate funding for cities or divert essential local revenue sources.
• C ities sh
ould not be used to help the state shore up its budget. Let’s work together to ensure cities can maintain essential services to residents.
Safeguard essential local revenues and support fiscal sustainability. 2023 Cal Cities Advocacy Priority
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Item No.16A
TO:City Council
FROM:Bob Engler, Councilmember
Mikey Taylor, Councilmember
DATE:May 9, 2023
SUBJECT: League of California Cities Channel Counties Division Meeting - April 28, 2023
RECOMMENDATION:
1. Receive report.
2. Find that this action is not a project as defined under the California Environmental Quality Act (CEQA).
FINANCIAL IMPACT:
No Additional Funding Requested. Direct and indirect costs are included in Adopted FY 2022-23 General Fund Budget.
BACKGROUND:
The League of California Cities (Cal Cities) is an association of California city officials who work together to enhance their knowledge and skills, exchange information, and combine resources so they may influence policy decisions that affect cities.
Founded in 1898 on the principles of local control and interagency cooperation, the League has grown from a handful of public officials to include the voluntary membership of 479 California cities. Today, the League and its member cities are working hard to strengthen the effectiveness of their advocacy efforts. Cal Cities' mission statement reflects this commitment to "restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians".
Item No.16B
Cal Cities Channel Counties Division Meeting - April 28, 2023 May 9, 2023
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2 DISCUSSION/ANALYSIS:
Cal Cities coordinates quarterly Channel Counties Division meetings to bring together local officials from San Luis Obispo, Santa Barbara, and Ventura Counties. At the meeting, members discuss regional issues and coordinate legislative efforts. The City of San Luis Obispo hosted the recent division meeting, held at the Madonna Inn. Councilmembers Bob Engler and Mikey Taylor; and Legislative Affairs Manager Mina Layba attended.
I Education Sessions
Host City of San Luis Obispo (SLO) offered two optional educational programs prior to the dinner meeting. Councilmember Engler and Legislative Affairs Manager Layba attended.
A. Partnership with SLO Museum of Art: City of SLO presented their partnership with the SLO Museum of Art. The presentation included a tour of public art and local murals. The City of SLO began their arts program in 1990. After their development of an Arts Master Plan in 2021, City of SLO began its partnership with SLO Museum of Art or SLOMA. Under the oversight of the Parks and Recreation Department, the City works with SLOMA on local public art. City of SLO contributes 1 percent of their annual Capital Improvements Project budget, collects in lieu fees and private donations to fund installations.
City of SLO’s role is to develop programs and focus on local artists, while SLOMA provides art expertise and procures art from outside of the community. They consider art as a form of tourism. Public art takes the form of murals and painted utility boxes. Some art installations are coordinated by community groups. Some property owners in the downtown area create voluntary murals they maintain.
Public art outside of the partnership must be approved by a local arts committee.
One way to keep art current is through living art, which takes the form of annually changing murals at the SLOMA building or rotating sculptures at local parks loaned by artists.
B. Downtown Redevelopment: City of SLO and the SLO Business Improvement Association conducted a walking tour and discussed ways they have redeveloped their downtown.
· New high-end hotel replacing an old parking structure. · Recognition of historic communities.
· Decorative alleyways and staircases to connect streets and shopping centers. · Parklets for outdoor dining with street striping.
· Buffered bike lanes.
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2 · Events including weekly farmers markets, summer concerts, and the annual Sip and Saunter wine/beer event.
· Downtown banners and decorative lighting.
· Inclusion of Cal Poly San Luis Obispo, their local university, in their downtown through a downtown extension/learning building.
City of SLO shared the importance of the Clean and Safe program to the vitality of their downtown. Downtown ambassadors are employed to provide daily cleaning services on downtown streets and alleyways. They remove graffiti, trash, clean public benches, etc. They also provide informal outreach to homeless. The program is supported by donation and business improvement fees. In the future, City of SLO expects to develop a cultural arts district and include more infill housing.
II Dinner Meeting
A. Welcome/Swearing In of New Division Chair: City of SLO Mayor Erica Steward welcomed everyone to the meeting. Cal Cities President Ali Taj, Councilmember from the City of Norwalk conducted the official swearing-in ceremony for Mayor Erica Stewart as new Channel Counties Division Chair. Carolyn Coleman, Cal Cities Executive Director conducted roll call of cities in attendance.
B. Keynote Speakers:
1. Assemblymember Dawn Addis (30th-Morro Bay)- Assemblymember is serving her first term on the legislature after serving as Morro Bay Councilwoman and former teacher. Member Addis shared that many of her colleagues have never served in local office and do not understand the role of cities in moving the State forward. She is proud to take on that role.
She shared a number of bills she introduced including tax credits and support displaced mobile home park residents impacted by the winter storms; housing for community college students; support to help low-income seniors gain access to senior care facilities; kelp preservation in the ocean which supports agriculture; and offshore wind energy.
One big accomplishment she shared was the creation of a Central Coast Caucus. With thirty members of the legislature coming from Los Angeles, she felt there was a need for representation by the five-county coastal region. The Caucus will advocate for coastal resiliency funding and support of the key transit route, the U.S.101. She serves as the Chair with Senator Monique Limon of Santa Barbara as Vice Chair.
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2 2. Jason Rhine, Housing Lobbyist- Cal Cities: Lobbyist Rhine provided a short legislative update of what was happening in the Capitol. The legislature has important deadlines. This week is the last week to introduce fiscal bills in the house of origin. May 19 is the deadline for non-fiscal bills to be introduced. The Governor will be introducing his May Budget Revision. The $22 billion deficit will likely grow to $30-50 billion.
Cal Cities is advocating for housing and homelessness funding. Cities need permanent on-going funding and Cal Cities is asking the legislature to set aside $3 billion annually. The Senator Pro Tem has included $1 billion in the Senate budget for the Housing Assistance Program. Negotiations between the legislature and the governor will determine the outcome of this funding. Special hearings will be held in May on fentanyl bills. Cal Cities is still opposing key housing bills that impact local zoning such as SB 423.
C. Division Updates:
1. Cal Cities Update: Channel Counties Division Public Affairs Manager Dave Mullinax announced the Division will be busy next year opposing the Business Road Table ballot measure that will impact local taxation authority. Public Affairs Manager introduced corporate sponsors or League Partners, Enterprise Cars, Best Best and Krieger, and Southland, who were in attendance.
2. Community Services Policy Committee Report: Division representatives to the Community Services Policy Committee provided background information about the committee. Two big items the committee is discussing are the fentanyl crisis and universal transitional kindergarten (TK) in public schools.
3. Soapbox Statements for Division Members: Representatives from cities shared successes or announcements:
· Oxnard announced their May Strawberry Festival and passage of a 1.5 cent local sales tax measure. The local tax could be in jeopardy with Business Road Table ballot measure.
· Atascadero announced their sales tax measure passed in 2022 to help public safety funding.
· Port Hueneme shared they are now offering outdoor youth programs like surfing and fishing to help prevent youth delinquency.
· SLO introduced the creation of a new Homelessness Mobile Crisis Unit which has helped reunite homeless individuals with families.
· Camarillo invited the division to tour their fully operational desalination plant. · Grover Beach introduced their Cabins for Change program. · Santa Maria invited the Division to attend their Strawberry Festival. · Paso Robles announced they received a $15M federal grant for a recycled water project.
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2 · Goleta announced their Lemon Festival in October.
· Pismo Beach reminded the Division to attend Taste of Pismo event and shared that they received a $15M federal grant award for a recycled water project. · Morro Beach announced their wastewater treatment facility project is complete. · Thousand Oaks announced the approval of 1,000 new housing units. · Atascadero invited the Division to attend their summer Brew at the Zoo event.
4. Announcements/Upcoming Events: Next Channel Counties Division Dinner will be held in Santa Barbara County in June. City and date to be determined.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
B. Provide municipal government leadership which is open and responsive to residents, and is characterized by ethical behavior, stability, promoting public trust, transparency, confidence in the future, and cooperative interaction among civic leaders, residents, business representatives, and staff, while recognizing and respecting legitimate differences of opinion on critical issues facing the City.
PREPARED BY: Mina Layba, Legislative Affairs Manager
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Item No.16B