City Council/Successor Agency/Public Finance Authority

AGENDA ITEM NO. 5. – A. CITY OF AVENAL “Pistachio Capital of the World®” SPECIAL CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING JUNE 29, 2022; 4:300 P.M. AVENAL CITY HALL, 919 Skyline Blvd., AVENAL, CA VIA ZOOM AVIDEO/WEB CONFERENCING: Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join. MINUTES CALL TO ORDER: at 6:39 p.m. PELAGE OF ALLEGIANCE: by Mayor Preciado. ROLL CALL: Councilman Hernandez, Councilman Gravelle, Councilman Verdugo, Mayor Preciado. ABSENT: Mayor Pro Tem Ramirez. STAFF: Lopez, Ortiz, Bermudez, Price. LEGAL COUNSEL: None. CITY CLERK: Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency. Mayor Preciado reported that there are two emergency/urgency items to consider that came to the City Council after the agenda was posted they are as follows: 1) Consider Fiscal Year 2021-2022 – End Budget Revisions; and 2) Fiscal Year 2022- 2023 – Appropriations Limit. Mayor Preciado motioned to add two emergency/urgency items to consider that came to the City Council after the agenda was posted they are as follows: 1) Consider Fiscal Year 2021-2022 – End Budget Revisions; and 2) Fiscal Year 2022-2023 – Appropriations Limit, second by Councilman Gravelle, and carried. Roll Call Vote: AYES: Preciado, Hernández, Verdugo, Gravelle. NOES: None. ABSENT: Ramírez. ABSTAIN: None. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPERANCES: no, public comments offered Antony Lopez, City Manager reported that as discussing the budget for two hours with the City Council. The City Council will be ready to adopt an operating budget for Year (FY) 2022/2023 City Budget /Fees & Charges, Avenal Successor Agency/RDA Debt Obligation Fund (FY) 2022/2023 Budget, and Public Finance Authority (PFA) Fiscal Year 2022/2023 City Budget. Also, noted the public hearing however at this time there are no fees and charges proposed for the operating budget the full budget may have something. As mentioned, he thinks the only thing will change is yard sales and building permits. Staff recommends opening Public Hearing and continuing hearing. PUBLIC HEARING(s): Joint Hearing of the City of Avenal Successor Agency RDA Trust Obligations Fund/Public Finance Authority: A. Consider Proposed City of Avenal Fiscal Year (FY) 2022/2023 City Budget /Fees & Charges:  Staff Report  Public Hearing  Discussion/Action: Approval by Resolution (including Fees & Charges). Special Joint Meeting City Council/Successor Agency/PFA - June 29, 2022 Page 2 of 3 Note: Funding Requests included in FY 2022/2023. B. Consider Proposed Avenal Successor Agency/RDA Debt Obligation Fund (FY) 2022/2023 Budget:  Staff Report  Public Hearing  Discussion/Action: Approval by Resolution. C. Consider Avenal Housing Authority (FY) 2022/2023 Budget:  Staff Report  Public Hearing  Discussion/Action: Approval by Resolution. D. Consider Proposed Finance Authority Public Finance Authority (PFA) Fiscal Year 2022/2023 City Budget:  Staff Report  Public Hearing  Discussion/Action: Approval by Resolution. Mayor Preciado opened Public Hearing for Joint Hearing of the City of Avenal Fiscal Year (FY) 2022/2023, City of Avenal Successor Agency RDA Trust Obligations Fund/Public Finance Authority/Housing Authority Fiscal Budget 2022/2023. at 6:56 p.m. Also, continued Public Hearing to Regular City Council meeting July 14, 2022 After a brief discussion, the following action was taken. RESOLUTION 2022-43: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2022/2023 OPERATING BUDGET IN ORDER TO MEET PAYROLL AND OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2022/2023 IS ADOPTED. Councilman Verdugo motioned to approve, seconded by Councilman Hernandez, and carried. RESOLUTION 2022-01 (SA/RDA): A RESOLUTION OF THE AVENAL SUCCESSOR AGENCY/RDA DEBT OBLIGATION FUND OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2022-2023 OPERATING BUDGET IN ORDER TO MEET OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2022/2023 AVENAL SUCCESSOR AGENCY/RDA DEBT OBLIGATION FUND BUDGET IS ADOPTED. Councilman Verdugo motioned to approve, seconded by Councilman Hernandez, and carried. A RESOLUTION OF THE AVENAL PUBLIC FINANCING AUTHORIITY (PFA) APPROVING A FISCAL YEAR 2022-2023 OPERATING BUDGET IN ORDER TO MEET OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2022/2023 BUDGET IS ADOPTED. Councilman Verdugo motioned to approve, seconded by Councilman Hernandez, and carried. Roll Call Vote: AYES: Verdugo, Hernández, Gravelle, Preciado. NOES: None. ABSENT: Ramírez. ABSTAIN: None. E. Consider Fiscal Year 2021-2022 – End Budget Revisions. Griselda Price, Director of Administrative Services reported that As part of the auditing process, Staff must address and propose to the City Council fiscal budget year-end revisions which must be approved prior to June 30, 2022, for the FY 2021/2022 budget, COVID, supply chain availability issues, inflation, and staff turn- over have adversely affected many accounts in ways not previously foreseen. Accordingly, staff, are reallocating budget amounts accordingly to reconcile revenues with expenditures. Staff is requesting that the City Council authorize Staff to adjust the revenues at fiscal year-end to reflect the actual revenues received and adjust the expenditures within the budgeted funds and reallocate funds, as necessary. Staff is also requesting authorization to adjust the revolving funds as needed throughout the year: Revolving Accounts consist of CDBG, HOME, Cal Home, Grants, Recreation programs, Explorers, Police Activity League, etc. Staff recommends by resolution, authorize the City Manager to utilize the department budgets in the best interest of the City, Special Joint Meeting City Council/Successor Agency/PFA - June 29, 2022 Page 3 of 3 within the departments approved bottom line budgeted Fund amounts as per approved by the City Council, and further authorize the year-end Fiscal Year 2021/2022 budget revisions (revenues and revolving accounts) as needed and/or required after closure of Fiscal Year 2021/2022. After a brief, discussion the following action was taken. RESOLUTION 2022-44: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL AUTHORIZING THE CITY MANAGER TO AMEND THE CITY’S BUDGET FOR FY 2020-2021. Councilman Verdugo motioned to approve, seconded by Councilman Hernandez, and carried. Roll Call Vote: AYES: Verdugo, Hernández, Gravelle, Preciado. NOES: None. ABSENT: Ramírez. ABSTAIN: None. F. Fiscal Year 2022-2023 – Appropriations Limit. Ms. Price reported that the Article XIII B of the State of California Constitution places limits on the amount of revenue which can be spent by all entities of Government. To address the restrictions of the Article and increase the accountability of government entities in adopting their limits, voters approved Proposition Ill in June 1990. Among other things, this Proposition provides new adjustment formulas which should make the Appropriation Limits more responsive to local growth issues. It also requires an annual review of Limit Calculations. She continues that the City Council shall, each year by Resolution, establish an appropriations limit for the expenditure of so- called proceeds of taxes. The adoption of the Resolution must be at a regularly scheduled meeting of the City Council or at a noticed special meeting. The Fiscal Year 2022/2023 Appropriations Limit is $4,111,785.49 and the Appropriation Limits subject to limitations is less than $2,800,000.00. Since the City's appropriation limits are $1,311,785.49 less than the limitations, it is safe to say we will not exceed our limit this year. Staff recommends that the City Council establish the Appropriations Limit for Fiscal Year 2022/2023 by adopting the proposed resolution. After a brief discussion, the following take. RESOLUTION 2022-45: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ESTABLISHING FISCAL YEAR 2022-23 APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION. Councilman Verdugo motioned to approve, seconded by Councilman Hernandez, and carried. Roll Call Vote: AYES: Verdugo, Hernández, Gravelle, Preciado. NOES: None. ABSENT: Ramírez. ABSTAIN: None. Mr. Lopez appreciate the Council's understanding on budget and appreciate the City Council taking time to review budget. Mayor Preciado thanked, everyone that participated on the budget. Staff will notice there will be no meeting tomorrow continued ADJOURNMENT: There being no further business the City Council meeting was adjourned at 6:59 p.m. Respectfully submitted, Maria Ortiz, City Clerk