Stephanie McGeary / @ 1:03 p.m. / Agendizer

ARCATA CITY COUNCIL: It’s Budget Time! Council Will Review the Proposed 2023/24 Budget on Wednesday

Arcata City Hall on a sunny day | File photo: Stephanie McGeary


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It is nearly the beginning of summer, a time for barbecues, river trips, festivals and — best of all — city and county budget discussions! Generally the City of Arcata adopts its budget for the upcoming fiscal year on or before July 1. With that right around the corner, the Arcata City Council will begin the budget review process at its next regular meeting on Wednesday. 

Arcata’s 2023/24 proposed budget is $80.5 million and includes $43.7 million in capital and infrastructure, most of which will be funded from grants and other outside sources. “The focus of this year’s budget is investment, building reserves and long-term financial sustainability,” Tabatha Miller, finance director for the City of Arcata, writes in the staff report. “The City’s Proposed FY 2023-24 expenditure budget continues the trend from FY 2022-23 of making significant investments in capital.” 

The 105-page document – which you can view here, if you so choose – goes over the city’s goals, objectives and priority projects for the upcoming fiscal year, which will also be adopted as a part of the annual budget. Upcoming priority projects for 2023/24 include continued work on Arcata’s homelessness reduction strategy, Valley West improvements, the Strategic Arts Plan, parks improvements and adaptation for climate change and sea level rise, among other things. The council will likely review these projects and make recommendations based on what actions have already been completed and if there are any other projects the council would like to see prioritized in the upcoming year. 

Now, on to the nitty gritty of the budget – the revenue streams. As you readers are probably aware, the City is still recovering financially from the pandemic and though conditions have certainly improved over the last couple of years, there is still a long way to go and city staff says that Arcata will need to identify new forms of “sustainable revenue” moving forward. 

“With the rising cost of services in a period of significant inflation and workforce competition, coupled with the services reduced over the prior two years, long-term sustainability is not achieved with existing revenue sources alone,” the budget states.

Image from Arcata’s proposed budget


Looking at some of Arcata’s existing revenue streams, particularly sales tax, Transaction and Use Tax (TUT) and Transient Occupancy Tax (TOT), which are the three main contributors to the City’s General Fund, there is some good and bad news. All those tax revenues  are still down from where they were pre-pandemic, but sales tax revenues are higher than  last year’s projections, which Miller says in part due to “the return to in-restaurant dining and increased online sales.” Arcata’s estimated TOT revenue has also increase significantly from last year,  but includes in-lieu payment from Cal Poly Humboldt to offset use of hotel rooms for student housing. 

One recommendation staff suggests to the council is increasing TUT to help increase revenue. Staff also recommends that the council increase the General Fund Working Capital Balance from 25 to 30 percent to “protect the Council’s options if future years are leaner.” 

The council will review the 2023/24 proposed budget during its meeting on Wednesday, June 7 at 6 p.m. Any changes requested by the council will then be made to the budget, which will return to a public hearing at the council’s next scheduled meeting on June 21,  after which the City Council may consider adoption.

You can view the full council agenda (and our lovable AgendaBot GENNIE’s summaries) below. You can view directions on how to participate in the meeting  in-person or remotely here.


Arcata City Council
June 7, 2023, 6 p.m.

1. LAND ACKNOWLEDGMENT

2. FLAG SALUTE

3. ROLL CALL

A. Roll Call


4. CEREMONIAL MATTERS

A. Proclamation in Recognition of World Oceans Day, June 8, 2023.


B. Proclamation in Recognition of Arcata, Six Rivers Charter, and Pacific Coast High School Safe and Sober Graduation Day, Thursday, June 15, 2023.


C. Proclamation Designating June 4-10, 2023, The Week of the Oyster.


D. Proclamation Recognizing June 2023 as National Alzheimer's and Brain Awareness Month.


5. REPORT BY COMMISSION/COMMITTEE

6. EARLY ORAL COMMUNICATIONS

7. N/A

8. CONSENT CALENDAR

A. Minutes of May 17, 2023 6:00 PM


B. 4194 : Bi-Weekly Report on Disbursements.

The city’s Finance Director, Tabatha Miller, has recommended that the City Council approve a list of disbursements made between May 6, 2023, and May 26, 2023. These disbursements are payments made in accordance with the city’s adopted budget and do not need to be audited by the City Council before payment. The list of disbursements is included as an attachment to the report.

— LoCOBot

… or, as a Rodney Dangerfield joke!

“I tell ya, the only time I see a list of disbursements is when I check my bank account after a night out with my wife. And let me tell ya, it’s always a tragedy.” - Rodney Dangerfield

— LoCOBot

DOCUMENTS:

Staff ReportA. Cash Disbursements 5-6 to 5-26-2023


C. 4198 : Adopt Resolution No. 223-59 Approving the Fiscal Year 2023/24 Annual Report on Stormwater Drainage Maintenance Fee for All Non-Tax Exempt Parcels and Directing That Said Fee be Collected through the Property Tax Rolls for Fiscal Year 2023/24.

The Director of Environmental Services is recommending that the City Council adopt a resolution approving the Stormwater Drainage Maintenance Fee for all non-tax exempt parcels, and that the fee be collected through the property tax rolls for the upcoming fiscal year. The Stormwater Management Program was implemented in 1993 to comply with state and federal requirements regarding stormwater pollution. The fee is assessed to all property owners to pay for the maintenance and improvement of City stormwater drainage facilities. The revenue generated from the fee is estimated to be $274,433.28 for the upcoming fiscal year.

— LoCOBot

… or, as a high-energy radio advertisement!

Are you tired of dirty stormwater polluting our beautiful city? Get ready to make a difference! The City Council has just approved Resolution No. 223-59, which means that a Stormwater Drainage Maintenance Fee will be collected through the property tax rolls for non-tax exempt parcels in fiscal year 2023/24. By paying this fee, you will help maintain and improve City stormwater drainage facilities, reduce stormwater pollution, and protect public safety. This year’s revenue is anticipated to be up to $274,433.28, and every dollar goes towards making our city a cleaner and safer place to live. So don’t wait - join the movement and help make a difference today!

— LoCOBot

DOCUMENTS:

Staff ReportA. Fiscal Year 2023-24 Annual Report Stormwater Drainage Maintenance FeesB. Resolution No. 223-59 Stormwater Fee to County


D. 4197 : Adopt Resolution No. 223-58, Approving the Fiscal Year 2023/24 Annual Report on Measure A Special Tax for All Non-Tax Exempt Parcels and Directing That Said Fee be Collected through the Property Tax Rolls for Fiscal Year 2023/24.

The City Council is being asked to approve a resolution to collect a special tax called Measure A, which is $37 per parcel, from non-tax exempt parcels through the property tax rolls for the fiscal year 2023/24. The Measure helps fund the acquisition, maintenance, and improvement of the city’s parks, trails, forest, and open spaces. The tax was approved by voters in November 2020 and excludes parcels that are exempt from property taxes. The estimated revenue from the tax on 4,614 parcels is $170,718 for the fiscal year 2023/24. The tax will not expire unless ended by voters.

— LoCOBot

… or, as a town crier's speech!

Hear ye, hear ye!

I come before you today with information regarding the fiscal year 2023/24 Annual Report on Measure A Special Tax for all non-tax exempt parcels. Our Director of Environmental Services, Emily Sinkhorn, has recommended the adoption of Resolution No. 223-58, which approves the Annual Report and directs that the fee be collected through the property tax rolls.

In 2020, the City Council adopted Resolution No. 190-68, which introduced a special tax measure, Measure A: Open Space Parks, and Trails Special Tax. This annual tax of $37 per parcel, excludes parcels that are exempt from property taxes. The measure was approved by voters in November 2020 and commenced on July 1, 2021.

The total number of parcels within the City limits deemed taxable by the County Assessor is 4,614, which with the $37 per year parcel tax will yield approximately $170,718 for fiscal year 2023/24. This revenue will fund acquisition, improvements, and maintenance of the City’s parks, trails, forest, and open spaces.

Staff have prepared the Fiscal Year 2023/24 Open Space, Parks, and Trails Special Tax Report, which will be forwarded to the County Auditor-Controller to be included on the tax rolls for fiscal year 2023/24. Through this report, the City will be able to move potential projects to the implementation stage, improve maintenance of existing park facilities, waterways and natural areas, and meet the community’s expectations for safety measures.

Let it be known that the Special Tax of $37 per year per parcel on 4,614 parcels raises an estimated $170,718 per year, and a special revenue fund has been created to accept the special tax revenue.

Thus, I urge you all to adopt Resolution No. 223-58 approving the fiscal year 2023/24 Annual Report on Measure A Special Tax for all non-tax exempt parcels. Thank you for your attention and support in securing the future of our City’s parks, trails, forest, and open spaces. Farewell!

— LoCOBot

DOCUMENTS:

Staff ReportA. FY 2023/24 Annual Open Space, Parks, and Trails Special Tax ReportB. Resolution No. 223-58 Measure A Property Tax Assessment


E. 3812 : Approve Lease Agreement between the City of Arcata and the County of Humboldt for the Arcata Branch Library; and Authorize the City Manager to Execute All Applicable Documents.

The Director of Environmental Services is recommending that the City Council approve a Lease Agreement between the City of Arcata and the County of Humboldt for the use of the Arcata Branch Library. The City and County have been sharing the Library building since its construction in 1984, with the County providing library services and the City providing maintenance and other services. The lease agreement would formalize this arrangement and designate an initial lease term from July 1, 2023, to December 31, 2036. The lease is required to finalize a grant agreement for accessibility upgrades to the building, which was awarded to the City through the State Library’s Building Forward grant program. The County would continue to provide library services and equipment, and the City would continue to provide maintenance services. No additional expenses are expected, as the cost of janitorial services is already budgeted. The proximity of the Library to the Arcata Transit Center makes it an easily accessible branch for Arcata residents to access the greater offerings of the Humboldt County library system.

— LoCOBot

… or, as a science-fiction story!

In the year 2036, the Arcata Branch Library is bustling with activity. It is one of the few remaining physical libraries left in the world, as the trend towards digital reading has overtaken the majority of the population. But in Arcata, the love for physical books and the community aspect of a library still thrives.

As Jane peruses the stacks, she notices a peculiar book she hasn’t seen before. It’s a thick, leather-bound volume with an unusual symbol etched onto the cover. Intrigued, she picks it up and opens to the first page.

Suddenly, she feels a jolt, as if lightning just coursed through her body. Her vision blurs and she stumbles backwards, dropping the book. When she looks up, the library is gone, replaced by a dimly-lit room with strange technology lining the walls.

Confused and disoriented, Jane stumbles to her feet and looks around. In the center of the room is a large, glowing orb, and standing beside it is a figure dressed in a sleek, silver suit.

“Welcome, Jane,” the figure says, their voice distorted by a robotic filter. “You have been chosen to participate in a vital mission.”

Jane blinks in disbelief. “What the hell is going on? Where am I?”

The figure explains that Jane has been chosen to travel back in time to the year 2022, in order to prevent a catastrophic environmental disaster. A group of scientists had discovered the dangerous effects of a certain chemical compound, but their findings had been suppressed by a powerful corporation in order to protect their profits.

By going back in time, Jane could help bring the truth to light and prevent the disaster from occurring. But she only had a limited amount of time to do so.

With a mixture of fear and excitement, Jane agrees to the mission. The figure tells her to reach out to a specific person in the City of Arcata, who will have the information she needs to stop the disaster.

And just like that, she’s transported back in time.

Disoriented and alone, Jane searches for the person she’s supposed to contact. She has to be careful not to draw attention to herself, since she appears to be dressed in a strange futuristic outfit.

But as she walks through the streets of Arcata, she can already see signs of the disaster looming on the horizon. Smog clouds the sky, and the air tastes of chemicals.

Finally, she spots the person she’s supposed to meet: Emily Sinkhorn, Director of Environmental Services.

Jane explains her mission to Emily, who is understandably skeptical at first. But as Jane shares the knowledge she has from the future, Emily realizes the truth and becomes a staunch ally in the fight to prevent the disaster.

Together, they work tirelessly to uncover the truth and expose the corporation responsible for the cover-up. It’s a race against time, as the chemical compound is already starting to seep into the environment.

As the days tick by, Jane becomes more and more integrated into the community of Arcata. She falls in love with the small town and its quirky residents, and begins to wonder if she even wants to return to her own time.

But she knows she can’t let her feelings distract her from her mission. With Emily and the townspeople by her side, they finally bring the corporation to justice and prevent the disaster from occurring.

But as Jane prepares to return to the future, she realizes she has a choice to make. Should she return to her own time, where everything is a mystery and the future is uncertain? Or should she stay in Arcata, where she has found purpose, community, and even love?

In the end, Jane decides to stay. She knows she’ll have to give up the advanced technology of her own time, but she’s willing to make that sacrifice for a chance at a better future in Arcata. And who knows? Maybe she can use her futuristic knowledge to help create a brighter future for the town and its inhabitants.

As she settles into her new life, Jane can’t help but wonder: was this mission really about preventing a disaster, or was it about finding a new home?

— LoCOBot

DOCUMENTS:

Staff ReportA. Arcata Library Lease Agreement_Final


F. 4185 : Award Contracts for the 2023 Timber Sales to Humboldt Redwood Company for Redwood Logs ($848/mbf), and to North Fork Lumber Company for Douglas Fir Logs ($615/mbf) and Grand Fir Logs ($415/mbf); and Authorize the City Manager to Execute All Applicable Documents.

The Director of Environmental Services recommended to the Honorable Mayor and City Council Members to award contracts for the 2023 timber sales to Humboldt Redwood Company and North Fork Lumber Company, and authorize the City Manager to execute all applicable documents. This timber sale is 80% redwood, and the planned harvest will follow single tree selection silviculture to thin overly dense homogeneous stands of young conifers. The logging contract for the 2023 timber harvest was awarded on May 17th. The proposed location and operational parameters are consistent with the City’s Forest Management Plan and NTMP 1-99-033HUM, and the budget/fiscal impact is revenue generated to fund the Forest Fund 205.

— LoCOBot

… or, as a Funkadelic song!

Verse 1:
City’s got a plan, gonna harvest some trees
Thinning out those stands, making room for older trees
Single tree selection, gotta do it right
Increase carbon stocking, make the forest resilient and bright

Chorus:
Award contracts, for 2023 timber sales
Redwood logs to Humboldt, Douglas and Grand Fir to North Fork
Authorize the City Manager, to execute all applicable documents
Revenue for the Forest Fund 205, gonna make it worth it

Verse 2:
Potential buyers visited, staff expected more
But bids came in, and they had to even the score
Two bids for Douglas and Grand Fir, one for redwood
Determined the best offers, gotta make the sales look good

Chorus:
Award contracts, for 2023 timber sales
Redwood logs to Humboldt, Douglas and Grand Fir to North Fork
Authorize the City Manager, to execute all applicable documents
Revenue for the Forest Fund 205, gonna make it worth it

Verse 3:
Following the plan, the forest will be managed right
Thinning overstocked areas, removing excess fuels in sight
Older trees will grow, reducing the risks of sediment inputs to creeks
Improving legacy erosion issues, fixing problems that had peaked

Chorus:
Award contracts, for 2023 timber sales
Redwood logs to Humboldt, Douglas and Grand Fir to North Fork
Authorize the City Manager, to execute all applicable documents
Revenue for the Forest Fund 205, gonna make it worth it

— LoCOBot

DOCUMENTS:

Staff Report


G. 4193 : Adopt Resolution No. 223-56, A Resolution of the Governing Body of The City of Arcata Authorizing Joint Request for Amendment to The Grove Standard Agreement Contract No. 21-HK-17196.

The Director of Community Development is recommending that the City Council adopts Resolution No. 223-56 which authorizes a joint request for an amendment to the Grove Standard Agreement Contract No. 21-HK-17196. The California Department of Housing and Community Development has made changes to their requirement for authorizing resolutions to be in their required format without alteration and now require a revision to a previously adopted resolution authorizing amendment to the existing Standard Agreement. This action is administrative and will not amend prior actions of the Council. The purpose of Resolution 223-56 is to document the approval of the addition of The Grove at Valley West LLC as co-applicant with the City of Arcata and Arcata House Partnership using a resolution acceptable to HCD in form and content. There will be no budget/fiscal impact.

— LoCOBot

… or, as a sea shanty!

(Verse 1)
Come gather ‘round and listen to my tale,
About a council meeting and a resolution for sale,
David Loya, the Director of Community Development,
Recommended the resolution, with no second comment.

(Chorus)
So let’s hoist the sails and set our course true,
To amend the Standard Agreement, there’s much to do,
The Grove at Valley West LLC joins the pact,
Let’s raise the anchor and get this ship tacked.

(Verse 2)
The California Department of Housing and Community Development,
Now allows alterations to their standard resolution, a recent development,
The previous resolution approved the addition of TGVW,
Now we need a new resolution, tailored in form and content true.

(Chorus)
So let’s hoist the sails and set our course true,
To amend the Standard Agreement, there’s much to do,
The Grove at Valley West LLC joins the pact,
Let’s raise the anchor and get this ship tacked.

(Bridge)
CEQA review has been completed and certified,
No budget or fiscal impact, so let’s not be terrified,
With Resolution No. 223-56, we’re ready to sail,
Together with Arcata House Partnership, we won’t fail.

(Chorus)
So let’s hoist the sails and set our course true,
To amend the Standard Agreement, there’s much to do,
The Grove at Valley West LLC joins the pact,
Let’s raise the anchor and get this ship tacked.

— LoCOBot

DOCUMENTS:

Staff ReportA. Resolution No. 223-56


9. ITEMS REMOVED FROM CONSENT CALENDAR

10. OLD BUSINESS

11. NEW BUSINESS

A. 4195 : Review Proposed Budget for Fiscal Year 2023-24.

This report is about the city council’s meeting in which they reviewed the proposed budget for the fiscal year 2023-24. The finance director recommends that the council gives staff direction on the proposed budget and the public hearing on the budget is scheduled for June 21. The budget includes the council’s goals, projected revenues and expenditures, the city’s capital improvement program projects, and the annual appropriations limit. The proposed budget is $80.5 million, with a focus on investment, building reserves, and long-term financial sustainability. The staff also recommends that the council invest more than $7.5 million to reduce the pension debt and increase the general fund operating reserve from 25% to 30%. The council will also consider adopting the appropriations limit along with the budget after a public hearing on June 21.

— LoCOBot

… or, as a Bollywood song!

Verse 1:
The city council meets, for a review
Of the budget that’s been proposed anew
Tabatha Miller speaks, Finance Director,
Her recommendation for staff’s direction

Chorus:
Let’s review the proposed budget,
For Fiscal Year 2023-24
Give direction to staff as appropriate,
Ensuring long-term financial security and more

Verse 2:
For each year, we must establish and follow,
An appropriations limit, the Gann’s motto
Pension debt reduction is a priority,
Investing $7.5 million towards sustainability

Chorus:
Let’s review the proposed budget,
For Fiscal Year 2023-24
Give direction to staff as appropriate,
Ensuring long-term financial security and more

Verse 3:
A $80.5 million budget for the year,
With investments in capital, without fear
The American Rescue Plan supports,
On the last page of the budget report

Chorus:
Let’s review the proposed budget,
For Fiscal Year 2023-24
Give direction to staff as appropriate,
Ensuring long-term financial security and more

Outro:
The city council meets for the budget,
Ensuring future success, one step at a time, let’s pledge it.

— LoCOBot

DOCUMENTS:

Staff ReportA. FY 2023-2024 Proposed Budget DocumentB. FY 2023-24 Appropriation Limit (Gann Limit) Calculation


12. ORAL AND WRITTEN COMMUNICATIONS

13. COUNCIL AND STAFF REPORTS

14. DATES OF FUTURE MEETINGS

15. CLOSED SESSION

16. CLOSED SESSION REPORTS

17. ADJOURNMENT


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