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HomeMy WebLinkAbout3-31-22 Special Meeting Full agendaCITY OF SAN BERNARDINO AGENDA FOR THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY THURSDAY, MARCH 31, 2022 5:00 PM – OPEN SESSION FELDHEYM CENTRAL LIBRARY • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander COUNCIL MEMBER, WARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Robert D. Field COUNCIL MEMBER, WARD 2 CITY MANAGER Juan Figueroa Sonia Carvalho MAYOR PRO TEM, WARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha COUNCIL MEMBER, WARD 4 CITY CLERK Ben Reynoso COUNCIL MEMBER, WARD 5 Kimberly Calvin COUNCIL MEMBER, WARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o PLEASE VIEW THE LAST PAGES OF THE AGENDA FOR PUBLIC COMMENT OPTIONS OR CLICK ON THE FOLLOWING LINK: https://sbcity.tiny.us/PublicCommentOptions o Please contact the City Clerk’s Office (909) 384-5002 two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. o Si necesita un intérprete en Español comuníquese con la Secretaria Municipal 72 horas antes de la reunión del consejo. Rocha_ge@sbcity.org o To view PowerPoint Presentations, written comments, or any revised documents for this meeting date select the link: tinyurl.com/agendabackup033122. o From the City’s homepage www.sbcity.org select the Government category -> City Clerk -> on the Navigation menu select Search for Records Online -> Council Agendas -> Current Year 2021 -> Meeting Date Special Meeting Agenda March 31, 2022 Mayor and City Council of the City of San Bernardino Page 2 Printed 3/25/2022 CALL TO ORDER Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez    Council Member, Ward 2 Sandra Ibarra    Mayor Pro-Tem, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    5:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA DISCUSSION 1. Preliminary Overview and Discussion of the Biennial Budget for Fiscal Years 2022/23 to 2023/24 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino receive the presentation regarding the Fiscal Years 2022-23 and 2023-24 budget and discuss preliminary budget priorities. ADJOURNMENT The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, April 6, 2022 in the Council Chamber located at 555 West 6th Street, San Bernardino, California 92401. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. Special Meeting Agenda March 31, 2022 Mayor and City Council of the City of San Bernardino Page 3 Printed 3/25/2022 CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the March 31, 2022 Special Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City’s bulletin board located at 201 North “E” Street, San Bernardino, California, at the San Bernardino Public Library located at 555 West 6th Street, San Bernardino, California, and on the City’s website sbcity.org on March 25, 2022. I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, City Clerk Special Meeting Agenda March 31, 2022 Mayor and City Council of the City of San Bernardino Page 4 Printed 3/25/2022 NOTICE OF A SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DATE: March 25, 2022 SUBJECT: Special Meeting on Thursday, March 31, 2022. NOTICE IS HEREBY GIVEN that the City Manager of the City of San Bernardino, with consensus of the City Council, has called a Special Meeting for Thursday, March 31, 2022, at 5:00 p.m. Said meeting shall be for the purpose of considering the following: DISCUSSION 1.Preliminary Overview and Discussion of Biennial Budget Fiscal Years 2022/23 to 2023/24 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino receive the presentation regarding the Fiscal Years 2022/23 and 2023/24 preliminary budget and discuss preliminary budget priorities. ADJOURNMENT The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will adjourn to the regular meeting on Wednesday, April 6, 2022. Open Session will begin at 7:00 p.m. Genoveva Rocha, CMC, City Clerk Special Meeting Agenda March 31, 2022 Mayor and City Council of the City of San Bernardino Page 5 Printed 3/25/2022 NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for publi c comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand th e documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Special Meeting Agenda March 31, 2022 Mayor and City Council of the City of San Bernardino Page 6 Printed 3/25/2022 PUBLIC COMMENT OPTIONS Please use ONE of the following options to provide a public comment: 1)Written comments can be emailed to publiccomments@sbcity.org. Written public comments received up to 3:30 p.m. on the day of the meeting (or otherwise indicated on the agenda) will be provided to the Mayor and City council and made part of the meeting record. They will not be read aloud unless you require an ADA accommodation. Please note: messages submitted via email and this page are only monitored from the publication of the final agenda until the deadline to submit public comments. Please contact the City Clerk at 909-384-5002 or SBCityClerk@sbcity.org for assistance outside of this timeframe. 2)Attend the meeting in person and fill out a speaker slip. Please note that the meeting Chair decides the cut-off time for public comment, and the time may vary per meeting. If you wish to submit your speaker slip in advance of the meeting, please submit your request to speak using the form on the following page: https://sbcity.tiny.us/PublicCommentOptions . 3)REMOTE PARTICIPATION VIA ZOOM (For public comment only meeting will not be viewable on Zoom) a)You can use a mobile phone or a landline to dial into a Zoom meeting. i)Dial (669) 900-6833. When prompted, enter the Meeting ID: 677-845-9453 Passcode: 2021 The public may begin joining the meeting on Zoom or by calling-in to be added to the speaker queue at 5:15 PM for Closed Session. Once admitted to the Zoom Public Comment meeting to request to speak at the appropriate time: ii)Dial *9 from your phone to raise your hand via Zoom If calling in staff will confirm the last four digits of the caller’s phone number and unmute them, the caller must then press *6 to speak from their device. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak. If you are calling in, please turn your volume down on your television or other devices to limit any feedback when you speak. Continued on next page… Special Meeting Agenda March 31, 2022 Mayor and City Council of the City of San Bernardino Page 7 Printed 3/25/2022 B)Join the Meeting by clicking on the Zoom link below: https://us06web.zoom.us/j/6778459453?pwd=ZTkzdUJtcDMrbmFNQnVDSFhva XQxZz09 Meeting ID: 677 845 9453 Passcode: 2021 You can also Go to Zoom.us and click "Join a Meeting" at the top. Enter the Meeting ID: 677-845-9453 Passcode: 2021 Public Hearings: If you are commenting on a Public Hearing, please stay signed on to the Zoom session or sign on when the Public Hearing is announced. You will be prompted by staff when the item is being discussed. Page 1 Discussion City of San Bernardino Request for Council Action Date: March 31, 2022 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Preliminary Overview and Discussion of the Biennial Budget for Fiscal Years 2022/23 to 2023/24 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino receive the presentation regarding the Fiscal Years 2022 -23 and 2023-24 budget and discuss preliminary budget priorities. Background This report provides an overview of the presentation that introduces the preliminary budget for Fiscal Years 2022/23 and 2023/24. This budget cycle will also introduce the City of San Bernardino’s first biennial budget, covering two fiscal years. During the development of the FY 2021/22 Operating and Capital Budget, the Mayor and City Council directed the City Manager to move the City to a two-year, or biennial, budget cycle. This process improves the ef ficiency of the budgeting process and enhances the planning and collaboration between departments. Discussion The purpose of the City’s budget is primarily to serve as the controlling force in how the City prioritizes the spending of public funds in our community. Following the best practices set out by leading organizations in public finance, the budget should allocate resources based on strategic objectives, ensure transparency and accountability and reflect the priorities of the community. The budget process is cyclical, commencing with budget preparations that started in the Winter of 2021. Departments collaborate with the Finance Department to submit budget requests, and along with input from the City Manager and the Mayor and City Council , the requests and spending priorities are rolled into the proposed budget. The Mayor and City Council will review the proposed budget, provide additional guidance on funding priorities that is formalized by the adoption of the budget in June. The budget is a living document that is regularly updated and amended to reflect the changing needs of the organization and the community. 1.1 Packet Pg. 8 8880 Page 2 The City’s budget is comprised of different funds that are organized by the types of revenue and expenditures or specialized objectives and activities. Each fund has resources and requirements that should balance. The majority of the City’s budget lives in the General Fund. The General Fund balance remains in a strong position based on higher than anticipated revenues from Fiscal Years 2020 -2021 as well as the completely funded economic and safety reserves. The City has continued to see strong economic performance and some savings in departments, largely from personnel vacancies, that keep the general fund balance in a strong position going into the new biennial budget. Revenue General fund revenue is comprised of several categories including charges for service, fines, intergovernmental, and taxes. The largest percentage of revenue in the general fund comes from sales tax. Various economic conditions drive sales tax, which has seen historically high numbers during the economic recovery of 2021 and early 2022. Based on the review of fourth quarter economic data from 2021 and the forecasts for the remainders of 2022 and into 2023, the City should expect to see some continued growth in sales tax driven by the higher demand for goods and services. However, this growth will likely decelerate and return to pre-pandemic levels beginning in early 2023. 1.1 Packet Pg. 9 8880 Page 3 Given these preliminary economic forecasts, staff anticipates that the City’s revenues will normalize over the next two fiscal years. Initial projections for Fiscal Years 2023 and 2024 reflect these assumptions and show a slowing in growth for Measure S and other sales tax as consumer spending returns to normal. For Fiscal Year 2022/23 staff is projecting $177,963,197 and for Fiscal Years 2023/24 $183,358,947 in total General Fund revenue. As the Mayor and City Council are aware, from previous discussions with staff, Measure S is a new revenue stream, and as such is not as predictable as other revenue streams for which the City has years of trend data on which to rely. While the structure of Measure S is like that of the previously imposed Measure Z tax, the allocation of the tax at the State level has changed significantly since the City adopted Measure S, making previous trend data irrelevant. Staff uses available economic reports, trends and forecasts of consumer spending, and local economic development information to develop forecasts. The preliminary forecast in this report includes the assumption that sales tax growth rates, including Measure S receipts, will slow in conjunction with a normalization of consumer spending. As more information becomes available, staff will update the forecast for all revenue categories. 1.1 Packet Pg. 10 8880 Page 4 Revenue Category Amended Budget FY 2021/22 Forecast End of Year FY 2021/22 FY 2022/23 Forecast FY 2023/24 Forecast Charges for Services 7,470,300 8,046,111 7,682,000 8,307,250 Fines and Forfeitures 1,478,500 751,081 1,364,000 1,416,000 Franchise Taxes 11,781,000 11,597,584 11,781,000 11,781,000 Intergovernmental 2,866,947 1,686,496 1,607,000 1,647,000 Investment Income 500,978 809,805 525,000 525,000 Licenses and Permits 11,858,000 12,332,638 11,080,000 11,343,000 Miscellaneous 2,778,037 409,998 3,688,697 3,709,697 Other Taxes 7,493,263 7,749,307 7,656,000 7,816,000 Cannabis Taxes 3,080,567 5,323,379 3,620,000 4,620,000 Property Taxes 19,267,608 19,991,785 20,000,000 23,000,000 Sales and Use Taxes 45,391,210 45,266,161 45,000,000 45,250,000 Use of Money and Property 779,600 779,600 529,000 554,000 Utility Users Taxes 22,700,000 23,517,277 21,430,500 20,890,000 Measure S Trans. and Use Tax 41,016,456 48,730,876 42,000,000 42,500,000 TOTAL Revenue 178,462,466 186,992,098 177,963,197 183,358,947 Building the Budget The City’s first biennial budget for Fiscal Years 2022/23 to 2023/24 will reflect proposed expenditures for two fiscal years. This is the first time that departments were asked to forecast expenditures for two years. Departments were given target budgets to ensure that fiscal spending stayed in line with projected revenues. All new expenditures that are increases to existing service levels go through a review process internally to ensure that they align with organizational needs as well as Mayor and City Council priorities. There are several key themes that came out of the budget requests from departments this year, including restoring service levels to better serve the community, focusing on organizational development and capacity building, engaging the community through recreation and programming, prioritizing public safety to maintain a high quality of life and providing a strong foundation for continued economic growth and development. Measure S Committee Recommendations Measure S provides an additional source of revenue through a transaction and use tax voted into place in November 2020. While this is a special revenue source, it is not restricted in its use, unlike Measure Z, which was governed in its use by accompanying Measure YY. Measure Z was specifically dedicated to Public Safety. The Measure S Committee will provide an update to the Mayor and City Council at a future meeting with their proposed spending recommendations. Capital Improvement/Community Investment Plan The Community Investment Plan (CIP) identifies and prioritizes large capital investments that the City intends to make in critical infrastructure. The CIP is funded through a variety of revenue sources, including special revenue funds that have restricted spending criteria such as the SB1 Gas Tax Fund, Measure I and CDBG, as 1.1 Packet Pg. 11 8880 Page 5 well as through the General Fund, Measure S and one time funding such as American Rescue Plan funds. The City anticipates that there will be similar levels of fund ing available for the CIP as in the prior year. The proposed CIP will focus on addressing ongoing priorities, such as maintenance and repair of streets, improving parks facilities, traffic control signals and maintenance, as well as City facilities and buildings, thereby restoring valued community assets that can help San Bernardino attract businesses and provide a higher quality of life for residents. 2021-2025 Strategic Targets and Goals The ongoing review of budget priorities and strategies aligns wit h all four key Mayor and City Council Strategic Goals and Priorities. Fiscal Impact There is no fiscal impact for the preliminary budget review and discussion. All budget priorities will be factored into the proposed budget that will be presented in May 2022. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the oral report. Attachments Attachment 1 Presentation - Preliminary Budget Discussion Fiscal Years 2022/23-2023/24 Ward: All Synopsis of Previous Council Action: June 16, 2021 The Mayor and City Council adopted Resolution No. 2021-138 approving the City of San Bernardino’s Operating Budget and Capital Improvement Program (CIP) for FY 2021/2022. December 2, 2021 The Mayor and City Council received and filed the 1st Quarter Budget Report for Fiscal Year 2021/22. March 2, 2022 The Mayor and City Council received the Mid-Year Budget Review for Fiscal Year 2021/22. 1.1 Packet Pg. 12