City Council - Budget Workshop - Special Meeting

Mayor AGENDA Donald Williams City Council Special Meeting – Budget Workshop Vice Mayor Lisa Gift Thursday, April 16, 2026 - 10:00 AM Councilmembers 1307 Washington St., Calistoga Irais Lopez-Ortega In-Person Scott Cooper Kevin Eisenberg Please participate in the meeting by observing or listening to the meeting in one of the following ways: 1. In Person – Calistoga Community Center 1307 Washington St., Calistoga 94515 Councilmember Lopez-Ortega will be present via teleconference from 1443 Lincoln Ave. Calistoga, CA 94515. COMMENT ON THIS MATTER DURING THE MEETING: Please participate in the meeting by providing public comment on the item on the agenda. To comment during a virtual meeting (Zoom), click the "Raise Your Hand" button to request to speak when Public Comment is being taken on the Agenda item. You will be unmuted when it is your turn to make your comment for up to 3 minutes. After the allotted time, you will be re-muted. WRITTEN COMMENTS: Alternatively, you may provide public comment on the item on the agenda via email. Please submit your comment, limited to 350 words or less, via email to publiccomment@calistogaca.gov. Written public comments submitted by email should clearly indicate the Agenda Item No. or specify “Oral Communications” in the Subject Line for items not on the agenda and are requested to include the submitter’s full name. Comments must be submitted at least four hours prior to the meeting start time to be included in the agenda and posted online. Comments received thereafter, will be made part of the official record and given to the Committee after the meeting. Note: The methods of observing or listening to the meeting or providing public comments may be altered or the meeting may be cancelled, if needed, due to certain technical disruptions. 1. CALL TO ORDER – ROLL CALL 2. PUBLIC COMMENTS 3. GENERAL GOVERNMENT 3.1. City Council Fiscal Year 2026/27 Budget Workshop Recommended Action: Staff recommends that the City Council receive the presentations, participate in the prioritization exercise, and provide direction on key projects, staffing considerations, and the use of infrastructure funding and reserves to guide preparation of the FY 2026–2027 budget. Staff Report - City Council Fiscal Year 2026/27 Budget Workshop - Pdf (Page 3 - 7) 4. COUNCIL REPORTS 5. ADJOURNMENT NOTICE: If you challenge a city’s zoning, planning, or other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Judicial review of any City administrative decision may be had only if a petition is filed with the court not later than the 90th day following the date upon which the decision becomes final. Judicial review of environmental determinations may be subject to a shorter time period for Litigation, in certain cases 30 days following the date of final decision. Pursuant to GC §54957.5: any writings/documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection on the City website at www.calistogaca.gov SUPPLEMENTAL MATERIAL RECEIVED AFTER THE POSTING OF THE AGENDA: Any supplemental writings or documents distributed to a majority of the City Council regarding any item on this Agenda, after the posting of the Agenda, such writings or documents will be made available on the City’s website and will be available for public review in the City Clerk’s Office located at 1232 Washington Street, Calistoga, California, during normal business hours and by appointment. AMERICANS WITH DISABILITIES ACT: The City can provide special assistance for persons with disabilities to participate in public meetings. To make a request for disability-related modification or accommodation please Page 0 of 7 contact the City Clerk at ygalvan@calistogaca.gov or (707) 942-2807. If you need assistance or accommodation, please provide notice at least 48 hours prior to the meeting. For TTY/ Speech-to-Speech users, dial 7-1-1 for the California Relay Service, offering free text-to-speech, speech-to-speech, and Spanish language services 24 hours a day, 7 days a week. ACTA DE AMERICANOS CON DISCAPACIDADES Se les pide por favor que avise con 48 horas de anticipacion cuando necesita hacer un pedido de assistencia. Esto nos da suficiente tiempo antes de la junta para que la ciudad tome medidas razonables. POSTING: I declare a copy of this agenda was posted at City Hall, 1232 Washington Street, Calistoga, among other locations in the city limits of Calistoga, on April 13, 2026. Yudiana Galvan, City Clerk Page 1 of 7 City of Calistoga STAFF REPORT To: Honorable Mayor and City Council From: Rachel Stepp, Deputy City Manager Meeting: City Council - Budget Workshop - Special Meeting - Apr 16 2026 Subject: City Council Fiscal Year 2026/27 Budget Workshop DESCRIPTION: City Council Fiscal Year 2026/27 Budget Workshop RECOMMENDATION: Staff recommends that the City Council receive the presentations, participate in the prioritization exercise, and provide direction on key projects, staffing considerations, and the use of infrastructure funding and reserves to guide preparation of the FY 2026–2027 budget. SUMMARY: The purpose of this item is to conduct a City Council budget workshop to review the City’s financial outlook, including the FY 2026–2027 budget summary and updated five-year projections, discuss departmental priorities and staffing considerations, and provide direction for development of the upcoming fiscal year budget. ANALYSIS: Staff will provide a high-level budget summary reflecting how the overall FY 2026–2027 budget is taking shape based on department requests and proposed inclusions, along with an updated financial forecast to help frame the discussion. In addition, several departments will present items above their base budgets for which staff is seeking Council direction on funding. This includes a discussion of the Fairgrounds’ structure moving forward, including consideration of integrating Fairgrounds maintenance into Public Works maintenance operations to better align with the City's management of parks, facilities, and green space. The workshop will also include a prioritization exercise to support Council direction on projects, funding, and next steps for budget development. FINANCIAL IMPACT: There is no direct fiscal impact associated with the workshop. However, Council direction will shape the FY 2026–2027 budget, including potential impacts related to staffing, capital projects, and the use of reserves. Additional cost details will be brought forward during the budget adoption process. CEQA STATUS: This action does not meet the definition of a “project” under the California Environmental Quality Act (CEQA). Page 3 of 6 ATTACHMENT(S): Budget for FY 26-27 General Fund Summary FY 2026-2031 General Fund Financial Forecast APPROVAL(S): Connie Cardenas, Admin. Services Director Approved - Apr 13 2026 Mitch Celaya, Interim City Manager Approved - Apr 13 2026 Yudiana Galvan, City of Calistoga | City Clerk Approved - Apr 13 2026 Page 4 of 6  4/13/2026 GENERAL FUND FY 2026/27 GENERAL Revenues 22,372,326 Risk Management (1,085,702) Transfer Out Debt (373,902) Available 20,912,722 Operating Expenditures: Department FINANCE 1,122,011 PLANNING COMMISSION 15,000 CITY COUNCIL 205,977 CITY CLERK - ELECTIONS 401,956 CITY ATTORNEY 150,000 CITY MANAGER 1,243,871 FAIRGROUNDS 787,577 PLANNING DEPARTMENT 886,398 BUILDING 611,094 POLICE & POLICE DISPATCH 5,548,085 FIRE & EMERGENCY SERVICES 3,645,307 NON DEPARTMENTAL 254,091 HUMAN RESOURCES 558,358 ALL PUBLIC WORKS 3,217,681 ALL PARKS & RECREATION 1,103,235 SHARPSTEEM MUSEUM 30,520 MONHOFF 39,418 LIBRARY SERVICES 216,000 ECONOMIC DEVELOPMENT PLAN 583,495 PW - TRANSIT SHUTTLE 25,000 TOTAL EXPENDITURES $ 20,645,074 ALL DEPARTMENT SURPLUS/(DEFICIT) 267,648 Grand Total GF Operating Budget 22,104,678 Added Exp & Rev for 4TH July Parade CIP REVENUES 2,860,000 CIP EXPENDITURES 3,252,000 ALL FUND SURPLUS/DEFICIT WITH CIP (392,000) Transfer in GF Water & Sewer Loans Projects Carryover FY 25/26 200,000 - ALL DEPT. & CIP SURPLUS/(DEFICIT) 75,648 Page 5 of 6 Attachment A REVENUES BY TYPE FY 23-24 FY 24-25 FY 25-26 FY 26-27 Estimated FY 27-28 Estimated FY 28-29 Estimated FY 29-30 Estimated FY 30-31 Base Revenues Actuals Actual Mid Year Estimated Increase/Decrease Estimated Increase/Decrease Estimated Increase/Decrease Estimated Increase/Decrease Estimated Property Taxes 3,024,835 3,120,481 3,449,628 3,343,584 66,872 3,410,456 68,209 3,478,665 69,573 3,548,238 70,965 3,619,203 VLF 1,032,563 1,079,598 1,108,632 1,227,981 - 1,227,981 - 1,227,981 - 1,227,981 - 1,227,981 Sales & Use Taxes 1,452,636 1,608,147 1,502,382 1,569,445 15,694 1,585,139 15,851 1,600,991 16,010 1,617,001 16,170 1,633,171 Transient Occupancy Tax 11,882,390 12,298,719 12,150,906 12,340,000 2,412,506 14,752,506 2,045,899 16,798,404 1,612,279 18,410,683 368,214 18,778,897 Other Taxes 523,943 563,873 523,950 526,570 2,633 529,203 2,646 531,849 2,659 534,508 2,673 537,180 Licenses & Permits 384,934 712,882 434,550 435,419 871 436,290 873 437,163 874 438,037 876 438,913 Fines/Forfeits/Penalties 19,649 33,169 15,100 15,402 308 15,710 314 16,024 320 16,345 327 16,672 Intergovernmental Revenue 1,114,214 897,160 725,720 732,977 7,330 740,307 7,403 747,710 7,477 755,187 7,552 762,739 Interest Earnings 12,597 653,502 575,000 585,000 (5,850) 579,150 (5,792) 573,359 (5,734) 567,625 (5,676) 561,949 Charges For Services 705,427 1,398,038 1,045,659 1,267,868 25,357 1,293,225 12,932 1,306,158 13,062 1,319,219 13,192 1,332,411 Miscellaneous Revenues - 215,000 - 25,000 50 25,050 50 25,100 50 25,150 50 25,201 Leases Revenues 6,000 104,000 106,080 2,122 108,202 2,164 110,366 2,207 112,573 2,251 114,824 Transfer In 1,774,250 125,000 643,866 197,000 - 137,000 - 137,000 - 137,000 - 137,000 TOTAL REVENUES 21,927,437 22,711,570 22,279,393 22,372,326 24,840,218 26,990,768 28,709,547 29,186,140 1,306,447 - - EXPENDITURES BY TYPE FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Base Expenditures Actuals Actual Mid Year Estimated Estimated Estimated Estimated Estimated Salaries 7,504,981 9,303,990 9,460,344 10,283,114 205,662 10,488,776 419,551 10,908,327 436,333 11,344,660 453,786 11,798,447 Benefits - Medical/Dental/Vision 893,614 1,222,826 1,364,037 1,483,338 118,667 1,602,005 144,180 1,746,185 157,157 1,903,342 171,301 2,074,643 Benefits - Worker's Comp 405,411 365,465 465,597 404,376 84,919 489,295 97,859 587,154 117,431 704,585 140,917 845,502 PERS and Unfunded Liability 1,406,933 1,546,582 2,633,107 1,864,494 186,449 2,050,943 102,547 2,153,491 107,675 2,261,165 113,058 2,374,223 Contract 3,129,733 2,344,708 2,581,656 2,822,499 56,450 2,878,949 57,579 2,936,528 58,731 2,995,259 59,905 3,055,164 Liability-Property Insurance 777,670 1,048,497 1,668,975 1,085,702 227,997 1,313,699 197,055 1,510,754 226,613 1,737,367 260,605 1,997,973 Supplies & Services 343,174 266,765 377,549 344,315 6,886 351,201 7,024 358,225 7,165 365,390 7,308 372,698 Repairs & Maint 124,203 151,513 362,935 400,135 8,003 408,138 8,163 416,300 8,326 424,626 8,493 433,119 Utilities 225,118 219,383 268,121 236,810 4,736 241,546 4,831 246,377 4,928 251,305 5,026 256,331 Rents & Leases 79,872 12,507 101,650 6,000 120 6,120 122 6,242 125 6,367 127 6,495 Marketing & Comm. Promo. 66,297 244,544 115,537 284,014 5,680 289,694 5,794 295,488 5,910 301,398 6,028 307,426 Training/Travel 89,063 111,385 176,280 193,160 3,863 197,023 3,940 200,964 4,019 204,983 4,100 209,083 Dues & Subscriptions 18,517 14,408 47,756 53,110 1,062 54,172 1,083 55,256 1,105 56,361 1,127 57,488 Other Charges 366,694 231,051 342,600 283,607 5,672 289,279 5,786 295,065 5,901 300,966 6,019 306,985 Fairgrounds Expenditres 648,531 822,392 787,577 39,379 826,956 41,348 868,304 43,415 911,719 45,586 957,305 Capital Outlay 109,941 157,204 80,000 276,247 5,525 281,772 5,635 287,407 5,748 293,156 5,863 299,019 Equip Fund Rent 558,101 731,018 482,628 902,640 18,053 920,693 18,414 939,107 18,782 957,889 19,158 977,047 Capital Improvement Program 3,798,657 976,938 398,838 192,000 3,840 195,840 3,917 199,757 3,995 203,752 4,075 207,827 Transfer Out 4,772,330 2,709,784 373,902 373,902 7,478 373,902 7,478 - - - - - 50% Reserve 76,568 491,482 375,463 606,679 656,241 TOTAL EXPENDITURES 24,670,309 22,307,098 22,123,904 22,353,608 23,751,487 24,386,395 25,830,968 27,193,013 SURPLUS/(DEFICIT) (2,742,871) 404,472 155,489 18,718 1,088,731 2,604,373 2,878,578 1,993,127 Page 6 of 6  FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Actual Mid Year Estimated Estimated Estimated Estimated Estimated TOTAL REVENUES 22,711,570 22,279,393 22,372,326 24,840,218 26,990,768 28,709,547 29,186,140 TOTAL EXPENDITURES 22,307,098 22,123,904 22,353,608 23,751,487 24,386,395 25,830,968 27,193,013 SURPLUS/(DEFICIT) 404,472 155,489 18,718 1,088,731 2,604,373 2,878,578 1,993,127 FORECAST 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - Page 7 of 6 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 TOTAL REVENUES TOTAL EXPENDITURES SURPLUS/(DEFICIT)