May 9, 2023 — Reedley City Council

Documented by Ntsa Iab Vang

Here’s what you need to know

  • The Reedley City Council held a special meeting on Tuesday, May 9 to discuss the fiscal year 2023-24 overall budget in the city and in two departments: Community Development and Community Services. The Community Development Department has accomplished introducing the monthly Reedley Street Eats events at Pioneer Park, implemented an entitlement application fee-reduction program for the downtown area, an expedited planning entitlement application program citywide and the Business Storefront Improvement Program. The Community Services Department accomplished reconstruction of the north end of the airport, expanded ELP programs, offered a variety of recreational programs, offering high school internships and senior programs.
  • At its regular meeting, a presentation was made to Stephen Penner, a community services commissioner of the Parks and Recreation Commission. The council welcomed new staff assistant, Yuziry Sanchez, and engineering assistant, Paola Ramirez. No additional actions were taken during the regular meeting.

Attendance

  • Matthew Tuttle, mayor pro tem
  • Scott Friesen, council member 
  • Anita Betancourt, mayor 
  • Suzanne Byers, council member 
  • Mary Fast, council member 

Follow-up questions

  • What actions can the city take to prevent the state Legislature from appointing state-selected members to the Measure C board?
  • What qualifications will high school student interns be required to have?
  • How can high school students become interns for the city?

Workshop

  • City Manager Nicole Zieba
    • In 2011, the city was close to filing for bankruptcy. Forty employees were laid off that year.
    • Zieba said the city is facing “a crisis of local authority from the state.” The League of California Cities lost in litigation with Sacramento about residential zoning.
    • “Zoning is almost becoming a thing of the past in government,” she said. 
    • She said the city is seeing more litigation for things like trip and falls, and potholes. 
  • Budget Summary and Overall Fiscal Position for fiscal year 2023-24 presented by Assistant City Manager Paul Melikian
    • Continued Refinement to Improve Accessibility and Understandability
      • Transparency is better governance
      • Five-Year Capital Improvement Plan
      • Using charts and graphs to tell the story
    • Government Finance Officer Association National Distinguished Budget Award (8th Year Running)
    • California Society of Municipal Finance Officers Excellence Budget Award (6th year running)
    • Overall Themes
      • Prudent use of one-time resources to focus on facility repairs, equipment replacement and capital projects.
      • Leverage outside resources where available
      • Performance measure
      • Full deployment of available funding for road rehabilitation
      • CalPERS pension contributions
      • Retention of qualified staff
      • Continue building the reserve
    • City fund overview
      • Section 19, page 333
      • 50+ Active Operating and capital funds
      • Specific or restricted use, tracking, transparency
        • Close out of Fund 080 City Bond Fund to Fund 082 Blighted Properties Remediation
        • Close out Fund 048 Water Rate Stabilization Fund to Fund 050 Water
        • Types of Funds: Unrestricted (General Fund), Enterprise, RDA Successor Agency, Internal Service Funds, Fiduciary Trust, Special Revenue, Capital.
    • Proposed Budget Highlights
      • Budget balanced in accordance with Reedley’s Balanced Budget Policy
      • All obligations fully funded, debt, labor agreements, etc.
      • One new position requested, two conversions and oner reclassification
      • Adds $225K to the general fund reserve
      • $10.7M in planned capital projects
      • Measure B General Sales Tax Add-On = Focus on one-time uses.
      • Inflationary increases addressed
      • No reduction in services or programs.
    • Total Proposed Budget for All Active Funds = $50,840,950
      • $18,966,984 personnel and benefit costs
      • $21,125,117 maintenance and operations
      • $10,748,849 capital expenditures
    • 2023-24 General fund – $18,772,531
    • 2023-24 Public safety sales tax proposed budget = $2,216,833
    • General Fund Health
      • Actual carryover from 2021-22: $4,069,340
      • Established fund balance June 30, 2023: $2,942,061
      • Total projected 2023-24 revenue: $18,772,531
      • Established fund balance June 30, 2024:  $66,734
    • General Fund Reserve Stats (Reserve Policy = 90 Days Operating Expenditures)
      • $3,169,485 estimated fund 002 balance 6/30/2023
      • $4,306,485 eligible reserves for 90 days.
    • Property Tax
      • Secured property tax
        • FYE estimate 10% above budget
        • Next year assumes 2% growth, plus new homes
        • 2023-24 estimated revenue $1,419,269
      • Property Tax in Lieu of Vehicle License Fee
        • FYE estimate 8.2% above budget
        • Next year assumes 2% growth 
        • 2023-24 estimated revenue of $2,594,642.
    • Sales Tax
      • Bradley Burns Sales Tax – General Fund
        • FYE estimate 2% below budget
        • Next year assumes 2% growth
        • 2023-24 estimated revenue $2,343,992
      • Measure B Add-On – General Fund
        • FYE estimate 9% above budget
        • Next year assumes 3% growth
        • 2023-24 estimated revenue $2,811,280
      • Measure G Add-On Public Safety (restricted use) – Fund 003
        • FYE estimate 6% above budget 
        • Next year assumes 1% growth
        • 2023-24 estimated revenue $1,817,276
    • Franchise Fees
      • Franchise Agreements
        • Pacific Gas & Electric, Gas Company, Comcast, Cable, Mid Valley Disposal
        • FYE estimate 5% above budget, $53,784
        • Next year assumes 6% growth.
        • 2023-24 estimated revenue $1,268,674.
    • Community Facilities District
      • Established November 2005 applying to all new development
      • Property tax roll assessments – restricted use
      • Partial offset for police, fire and parks maintenance costs within CFD boundary.
    • Debt Discussion
      • No new debt is proposed
      • All capital purchases planned with available fund balances
      • All existing Debt Service Obligations are fully funded. (Section 22/Page 368)
    • Capital Improvements Program
      • 60 projects planned next year $10,748,849, Transmittal Page 11
      • CIP by funding source, page 196
        • General fund capital $4,323,954 uses Measure B sales tax
      • Unfunded Projects, Page 246
        • Currently $63M over a five-year planning horizon.
    • ARPA Funds FY 2023-24
      • $920,000 City Hall and Police Department expansion Planning andDesign
      • $50,000 Opera House repairs
      • $57,693 Facade Improvement Program
      • $581,000 Airport fuel tank and new hangar design
    • Staff positions
      • New position – Fire Lieutenant
      • Conversion of 40-hour part-time position to full time
        • Facilities coordinator
        • Parks maintenance worker I
      • Reclassification based on job duties
        • HR technician to HR analyst.
    • Personnel and Benefits
      • Memorandum of Understanding (MOU) with the RPOA ends June 30, 2024
      • MOU with the GSU ends June 30, 2024
      • Unrepresented employees
        • 4% COLA July 1, 2023 (proposed)
      • Retiree medical benefit (other post employment benefits)
        • Established by council resolution
        • Fully funds estimated OPEB medical premiums, $336,100.
      • Pre-funding to the CalPERS California Employers’ Retiree Benefit Trust (CERBT)
      • Part-time hourly Increases
        • Inflation and labor force availability
        • Impacts community services programs
        • Adjustments to part-time pay ranges.
        • 8% medical premium increase assumed
          • Plans will be put out to the marketplace late summer 2023 and taken before the council in the fall
          • Last year, the city faced 12.5% and worked on solutions.
    • Pension Contributions
      • Pension cost burden continues to shift from investment earnings to local city coffers
      • Next year unfunded accrued liability (UAL) payment is $1.32 million
      • The UAL pre-payment option saves $42,834 (3.4 % savings).
      • Generates $400K in long-term savings, $17-20K annually. 
    • Concerns
      • Local control, jurisdiction land use authority
      • Staff recruitment and retention
        • Law enforcement
        • Specialized knowledge
      • Supply-chain delays for critical parts
      • Persistent inflation – city funds do not go as far.
  • Administrative Services Department – 2023-24 Budget Presentation
    • ASD responsibilities
    • Finance, accounting and budgeting
      • Pre-paid CalPERS unfunded actuarial liability (UAL)
    • HR Payroll & Benefits
      • Conducted 47 recruitments
      • Hosted six youth programs.
  • Community Development Department – Accomplishments
    • Economic Development
      • Introduced monthly Reedley Street Eats events at Pioneer Park
      • Implemented an entitlement application fee reduction program for the downtown area
      • Implemented an expedited planning entitlement application program citywide
      • Implemented the Business Storefront Improvement Program
    • Building Division:
      • Investigated building and housing complaints
      • Worked with code enforcement to address unpermitted improvements
      • Implemented the rollout of the 2022 California Building Code
      • Continued coordination with other departments on building code-related matters.
    • Budget Line-Item Highlights
      • Increases support for the Chamber of Commerce
      • Maintains funding levels for staff training and professional development.
      • Conservative estimation for revenues due to economic uncertainty.
  • Community Services Department
    • Senior Programs
      • Get Moving Program and Senior Lunch Program
        • Special Trips: Fresno Chaffee Zoo, Table Mountain Casino, New Wrinkles Performance, Lavender Farm and Christmas Tree Lane.
        • Monthly Activities and Special Events: Bingo and Pizza, cooking classes, Lunch Around the World, movies and ice cream, quarterly free luncheons, senior prom night
    • Recreation Programs
      • Goals: Offer Tiny Tots Cheer Program, adult dance class, rehang murals from Royal Valley Buildings.
      • Youth sports, adult sports, special events, aquatics, preschool, instructor classes, seasonal camps
    • Expanded Learning Program (ELP) – $1,838,714
      • Accomplishments: High school internship program
        • Instructors: Yoga, sewing, dancing
        • Field trips: Universal Studios, Santa Cruz, San Jose Tech, museum
        • Vendors: African drumming, cano boxing, Artist in Me.
        • 350 positions were offered as entry-level.
    • Building Maintenance
      • Capital Project Requests for 2023-24
        • Remodel space for maintenance operations
        • Roof repair for Fire Department
        • Replace 4 HVAC units
        • LED lighting in Police Department
        • Replace tile floor in California Room and Senior Room
        • Convert part-time laborer position to full-time facilities coordinator
    • Airport
      • FY22: Apron Reconstruction Project
        • Reconstruction of the north end of the apron area is complete.
      • FY23: Design work for above-ground fuel tanks
        • The city has already started the process to prepare for requesting a grant from the FAA for this project. $110,000
      • FY24: Airport Layout Plan (ALP) – update construction – above -ground fuel tanks
        • ALP is outdated and must stay current to request grants from the FAA. $8.75 million
    • Opera House
      • Goal 2023-24: Focus to provide more public events in the building.
      • Refurbish theater chairs
      • Replace HVAC Unit


Presentation

  • Presentation to Stephen Penner Community Services Commissioner
  • Introduction of Staff Assistant Yuziry Sanchez 
  • Introduction of Engineering Assistant Paola Ramirez

Council Reports:

  • Friesen reports that he climbed the Sports Complex Tower over the weekend. He would like to see it occupied in the future. Friesen also reports a recent and educational visit to the wastewater treatment plant.
  • Fast said she attended the Upper Kings Water Board meeting and said the website was updated, including the annual report of 2021-22. She also attended the Fresno COG meeting to appoint two people. She also said she met the new mayor of Orange Cove. 
  • Byers said she was happy to learn that the senior training class was offered twice this year. She said the Sierra Kings District is funding another eight-week training in the fall. Byers urges the community to take this life-changing class as it is free of charge. 
  • Tuttle said he was allowed to open a water tower and learned about wastewater treatment.

Staff Reports

  • City manager shared: “Reedley U” – Reedley University: A special meeting on June 16 

The special meeting was called to recess at 6:59 p.m. and resumed at 7:41 p.m. after the regular meeting. The regular meeting adjourned at 7:40 p.m. The special meeting adjourned at 8:59 pm. 

If you believe anything in these notes is inaccurate, please email us at fresnodocs@fresnoland.org with “Correction Request” in the subject line.

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