City Council - Special Meeting - Budget Workshop

Mayor AGENDA Donald Williams City Council - Special Meeting – Budget Workshop Vice Mayor Irais Lopez-Ortega Monday, May 19, 2025 - 10:00 AM Councilmembers 1307 Washington St., Calistoga Lisa M. Gift 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, CA COMMENT ON THIS MATTER DURING THE MEETING: Please participate in the meeting by providing public comment on the item on the agenda in person, limited to 3 minutes per person. WRITTEN COMMENTS: Alternatively, you may provide public comment on the item on the agenda in writing. 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. and is requested to include the submitter’s full name. Comments received by 2:00 p.m. on the day of the meeting will be posted online with the agenda packet and included in the record. Comments received after 2:00 p.m. will be made part of the written record and be sent to Council 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. GENERAL GOVERNMENT 2.1. City Council Fiscal Year 2025/26 Budget Workshop Recommended Action: Discuss and provide direction to staff on key elements of the Fiscal Year 2025/26 budget including department goals, modification to current practices related to General Fund year-end savings, staffing modifications, Infrastructure Fund projects, and capital improvement program (CIP) projects to be incorporated into the recommended budget. Staff Report - City Council Fiscal Year 2025/26 Budget Workshop - Pdf (Page 3 - 11) 3. COUNCIL REPORTS 4. 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.ci.calistoga.ca.us. 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 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 Page 0 of 11 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 May 16, 2025, by 4:30 p.m. Yudiana Galvan, City Clerk Page 1 of 11 City of Calistoga STAFF REPORT To: Honorable Mayor and City Council From: Rachel Stepp, Deputy City Manager Meeting: City Council - Special Meeting - Budget Workshop - May 19 2025 Subject: City Council Fiscal Year 2025/26 Budget Workshop DESCRIPTION: City Council Fiscal Year 2025/26 Budget Workshop RECOMMENDATION: Discuss and provide direction to staff on key elements of the Fiscal Year 2025/26 budget including department goals, modification to current practices related to General Fund year-end savings, staffing modifications, Infrastructure Fund projects, and capital improvement program (CIP) projects to be incorporated into the recommended budget. SUMMARY: As part of the City’s annual budget development process, the City Council convenes a study session to review strategic and financial priorities across all departments. This session provides an early opportunity to align goals and resources before formal budget adoption. This session will include the following topics:  Review of Departmental Goals and Objectives  Discussion of Infrastructure Fund policy revisions related to revenue from General Fund year- end savings  Budget Summary including signifant changes from the prior year and recommended staffing modifications  Infrastructure Fund overview and recommended projects  Overview of the Capital Improvement Program (CIP) Provided in the attachments are the Draft Department Goals and Objectives and the FY 25/26 Draft Budget Summary sheet that represents a balanced budget. CEQA STATUS: This action does not meet the definition of a “project” under the California Environmental Quality Act (CEQA). ATTACHMENT(S): FY 2526 Draft Goals and Objectives 5.19.25 Budget for FY 25-26 Budget Master File Draft - Fund Summary Page 3 of 10 APPROVAL(S): Connie Cardenas, Admin. Services Director Approved - May 15 2025 Laura Snideman, City of Calistoga | City Manager Approved - May 16 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - May 16 2025 Page 4 of 10 City of Calistoga Departmental Goals and Objectives FISCAL YEAR 2025-2026 (DRAFT) Page 5 of 10 Departmental Goals and Objectives (Draft) The Calistoga City Council has a focus on economic vitality, housing, infrastructure, recreation, professional services, our environment, public safety, and small-town character. The following Departmental Goals and Objectives for Fiscal Year 2025-2026 aim to support the City Council’s overall focus. The following does not encompass all services that each department provides but rather is a list of the projects and programs that are either new initiatives or special projects that will be a major focus for the department in the fiscal year and/or require new funding. This document is divided into the following departmental focus areas (in no particular order): Public Works, Planning and Building, Fairgrounds, City Administration, Fire, Police, and Parks and Recreation. PUBLIC WORKS Public Works is responsible for Water Treatment, Water Distribution, Sewer Collection, Sewer Treatment, Reclaimed Wastewater Storage and Distribution, Storm Drainage, Streets, Sidewalks, Traffic Engineering, City Buildings/Facilities, Parks, Capital Projects, Engineering, Development Plan Review, Regulatory Enforcement, and other related Public Works services. For Fiscal Year 2025-2026, the Department will have a particular focus on: 1. Complete the San Francisco Regional Water Quality Control Board Cease-and-Desist Order work critical for NPDES permit compliance at the Dunaweal Wastewater Treatment Plant (WWTP) by completing the construction of the Riverside Ponds and Headworks Mitigation Project. 2. Advance multi-year efforts to complete California Division of Safety of Dams (DSOD) compliance work at Kimball Reservoir, including replacing the seized drain valve and intake tower, and repairing the outlet and raw water treatment pipe conveyance beneath the dam. 3. Advance State Division of Drinking Water compliance by progressing design and permitting for the Rutherford and Dunaweal water booster pump stations, enabling removal of the Pope Street station from the 100-year floodway and supporting disinfection byproduct reduction through granulated activated carbon (GAC) filtration improvements. 4. Continue to pursue grants and potential local infrastructure bonding to fund replacement and rehabilitation of aging water/sewer pipes over seventy-five years old and local bridge projects. 2 Page 6 of 10  5. Formalize succession planning and internal advancement opportunities within the engineering team. PLANNING AND BUILDING Planning and Building is responsible for overseeing and guiding development activities in the City of Calistoga. Department functions include administration of building and planning regulations, assistance to the public on City permit applications, land use and zoning information, code enforcement, assistance to the Planning Commission and City Council, and environmental review. For Fiscal Year 2025-2026, the Department will specifically prioritize: 1. Continue to implement annual Housing Element action items. Tasks include outreach exercises, policy adoption, ordinance amendments, and more. 2. Recommend modifications to the Municipal Code to eliminate obsolete or inconsistent provisions, ensure compliance with State laws, improve clarity and usability, promote transparency and accessibility, and support community development goals to create a more efficient, legally sound, and responsive regulatory framework. Priority Municipal Code sections to address are: Chapter 16.16 Subdivision Design & Improvement Standards as it relates to circulation Chapter 8.20 Nuisances as they relate to noise All Residential Chapters as they relate to the continued prohibition of short-term rentals 3. Initiate and complete an update of the Inclusionary Housing Ordinance and associated in-lieu fees by conducting a nexus study. 4. Continue advancing the “Missing Middle” housing conversation with Council and develop practical mechanisms, incentives, and development standards that efficiently support and encourage this type of housing development. 5. Pursue residential development of the City-owned parcels located at Earl and Eddy Streets either in coordination with the school district or as a standalone project. 6. Continue to collaborate with City departments and applicants to ensure that City- initiated and private development projects that are consistent with the City’s General Plan and Municipal Code are processed per State law and result in projects that retain or enhance community character. 7. Provide efficient entitlement procedures for applicants and develop professional partnerships with applicants who choose to invest in projects that are consistent with the General Plan and will provide goods, services, and/or revenues that support the community. 8. Establish a Senior Planner position to enhance the Planning Department’s capacity to manage complex projects and provide strategic support for the City’s housing goals and long-range planning initiatives. FAIRGROUNDS The Fairgrounds Department is responsible for the oversight, revitalization, and management of the approximately 70-acre fairgrounds property. The City is committed to transforming the 3 Page 7 of 10 fairgrounds into a vibrant community asset that benefits both residents and visitors. For Fiscal Year 2025–2026, the Department will specifically prioritize: 1. Support the Fairgrounds Advisory Committee: Facilitate the work of the newly established committee by providing the necessary resources and coordination to help them offer informed advice, conduct research, and make recommendations on matters related to the fairgrounds. 2. Develop a Long-Term Fiscal Sustainability Plan: Create a strategic roadmap to guide revitalization efforts, secure funding through grants and partnerships, and ensure the site’s financial viability. The plan will emphasize the fairgrounds’ role in supporting recreational, cultural, and economic development. 3. Enhance Community Engagement and Stewardship: Continue ongoing community outreach and volunteer efforts to maintain the grounds’ appearance and foster a strong sense of community involvement in the care and future of the property. 4. Establish a Maintenance position to support the revitalization of the Calistoga Fairgrounds by addressing deferred maintenance, repairing neglected infrastructure, and ensuring the smooth return of community programs, events, and activities. ADMINISTRATION Administrative staff provides timely and professional management through a broad range of administrative, management, and financial services. For this document, the section includes the goals for the City Manager’s Office, City Clerk’s Office, Finance, and Human Resources. For Fiscal Year 2025-2026, these core functions will specifically prioritize: 1. Implement a Records Management System to streamline document organization, improve accessibility, ensure compliance with public records laws, enhance transparency, and reduce manual workloads. 2. Implement a new Enterprise Resource Planning (ERP) system to modernize city operations and improve financial oversight. 3. Enhance long-term financial planning by creating 10-year financial projections and a two-year budgeting cycle to reduce administrative workload, improve fiscal stability, and allow city staff to focus more on service delivery and strategic priorities while still maintaining flexibility through mid-cycle adjustments. 4. Actively retain exceptional City staff and recruit for vacant positions. 5. Conduct labor negotiations and discussions to create successor Memorandums of Understanding and Employment Resolutions. 6. Identify and apply for Federal and State grants to fund improvements and address community needs, such as at the fairgrounds, solar/EV, city infrastructure, community center, etc. 7. Implement technology-centered projects such as an IT Managed Services Contract and a redesign of the City’s website. 4 Page 8 of 10  8. Continue to provide Administrative and Project Management support to other city departments. FIRE DEPARTMENT The Fire Department provides services to the residents and visitors of greater Calistoga, which protect their lives, property, and environment from fires, medical emergencies, hazardous materials incidents, and disasters. For Fiscal Year 2025-2026, the Department will specifically prioritize: 1. Amend and adopt the 2025 Fire Code to ensure compliance with updated state regulations, improve wildfire protection, enhance emergency response, and strengthen fire safety requirements for new development. Local amendments will address Calistoga’s unique fire risks while aligning with regional safety standards and mutual aid agreements. 2. Work with the Napa County Office of Emergency Services and other Napa County agencies to update and adopt the Napa County Multi-Jurisdictional Hazard Mitigation Plan. 3. Complete review and evaluation of our daily staffing model to provide the highest level of services to the community while maintaining fiscal accountability. 4. Work with the Fairgrounds Revitalization Director and local volunteers to initiate improvements of an area for Fire Department training and drills. 5. Evaluate administrative and management staffing needs in the Fire Department. POLICE DEPARTMENT The Police Department serves the Calistoga community by identifying stakeholders who share the goal of maintaining public safety and making Calistoga a great place to live and visit. We pride ourselves on providing professional services in an ethical and honorable manner. The Department embraces the concept of community-oriented policing, transparency, and professionalism. For Fiscal Year 2025-2026, the Department will specifically prioritize: 1. To improve direct supervision and mentorship, and improve departmental succession planning, reorganize Police Department staffing by eliminating the Lieutenant position and creating an Administrative Sergeant position, that each of the three sergeants will rotate through. 2. Implement a Patrol Bike program to enhance community engagement, improve patrol access in high-pedestrian areas, and provide faster response times in congested spaces like downtown, parks, and events. 3. Research the implementation of a drone program to monitor large events, improve emergency response, and support public safety as a force multiplier at locations like the fairgrounds, downtown, and wildfire-prone areas. 5 Page 9 of 10 PARKS AND RECREATION Parks and Recreation oversees all recreation operations, programs, and services to promote healthy lifestyles and improve the quality of life for people of all ages. The Department encourages citizen involvement and develops cultural harmony by building and maintaining community partnerships. For Fiscal Year 2025-2026, the Department will specifically prioritize: 1. Expand morning fitness programs for seniors to include chair-based exercise, low- impact aerobics, strength training, and balance-focused classes. 2. Expand and strengthen the group of volunteers who already support the department. This includes increasing their involvement in special events, senior and teen trips, projects at the Fairgrounds, and other Parks and Recreation programs. 3. Strengthen the long-term sustainability of Parks and Recreation programs by refining cost recovery strategies, considering caps on individual program subsidies, exploring membership-based models, and reducing expenditures through more efficient use of in-house resources. 6 Page 10 of 10  FUND GENERAL WATER SEWER Revenues 21,918,893 6,615,474 6,045,374 Risk Management (1,668,975) Transfer Out Debt (373,902) Available 19,876,016 6,615,474 6,045,374 Operating Expenditures: Department FINANCE 1,023,179 PLANNING COMMISSION 9,000 CITY COUNCIL 198,121 CITY CLERK 280,933 CITY ATTORNEY 150,000 CITY MANAGER 1,158,725 FAIRGROUNDS 822,392 PLANNING DEPARTMENT 745,323 BUILDING 576,792 POLICE & POLICE DISPATCH 5,205,508 FIRE & EMERGENCY SERVICES 3,489,858 NON DEPARTMENTAL 309,235 HUMAN RESOURCES 428,275 ALL PUBLIC WORKS 3,297,219 ALL PARKS & RECREATION 1,308,957 SHARPSTEEM MUSEUM 30,141 MONHOFF 25,250 LIBRARY SERVICES 188,000 ECONOMIC DEVELOPMENT PLAN 566,500 PW - TRANSIT SHUTTLE 23,500 TOTAL EXPENDITURES $ 19,836,909 $ 4,206,138 $ 2,944,204 ALL FUNDS SURPLUS/(DEFICIT) 39,107 2,409,336 3,101,170 Page 11 of 10