Healdsburg City Council set forth budget allocations for fiscal year 2020-21 from 2019-20 Measure V revenues to fund projects and improvements to city streets, police and fire at their most recent city council meeting on Feb. 18.
Measure V is a half-cent sales tax that was approved by voters in 2012. The tax went into effect in April of 2013 and since then has generated between $1.8 to $2.1 million each year to help fund city services and updates.
This past year funds from the measure went towards street maintenance and repair, additional public safety positions, police and fire equipment such as two-way radios, utility discounts to low- income families and upgrades to the senior center’s old heating, ventilation and air conditioning system (HVAC).
Council gave direction on budget allocations based on a Mesure V survey that was sent out to residents earlier this month. The aim of the survey is to serve as a tool in helping councilmembers determine how the measure funds should be distributed.
In total, the city received 989 surveys from residents, 873 of which were by mail. 116 surveys were completed online. The survey was done in both English and Spanish.
Street maintenance took the top spot in terms of what residents said they want the funds to be spent on.
The results of the survey are:
• Public safety – 23%
• Streets maintenance – 38%
• Economic development – 9%
• City facilities – 10%
• Increase General Fund reserves – 3%
• Balance General Fund budget – 3%
• Community grant program – 3%
• Other – 11%
“These results are very similar to the past couple of years,” said Heather Ippoliti, city of Healdsburg finance and administrative services director.
Ippoliti showed a slide in a PowerPoint presentation that showed previous survey results versus the council allocations.
“The council has been very consistent about funding streets at about 50%, a little bit to economic development, public safety, 25 to 30%, city facilities 5 to 11%,” she said.
In terms of the current fund balances Ippoliti said, “The year began with $2.3 million in the fund balance and we have spent $2 million 83,000 in expenditures and we got another $2.1 million in progress.”
The estimated fund balance at the end of the current fiscal year is $175,644.
“I am proposing that we use $150,000 of that this fiscal year leaving about $25,000 left,” Ippoliti said.So far $7 million has been spent on street maintenance and repair. The proposed Measure V allocation for streets for the next fiscal year is $1.089 million for pavement rehabilitation and pavement overlay.
“The proposed projects include pavement rehabilitation totalling $670,000 combined with $200,000 from SB 1 money to create a larger project and a pavement overlay project for $419,000 combined with $281,540 from priority funding,” Ippoliti explained.
In economic development and housing, $1,435,573 has been spent so far on things like low income discounts, grant programs, chamber of commerce and rent stabilization.
The proposed allocation is $145,500 for chamber of commerce and $100,00 and low-income utility discounts.
“We funded Corazón in the past and we don’t have that in this current funding cycle. We did discuss this during the community grant process. There wasn an item of $10,000 for census outreach and we’ll likely see that additional request from Corazón so this is something you may want to consider for Measure V or you may want to take it out of general fund monies,” said Healdsburg City Manager David Mickaelian. He said the total ask from Corazón may amount to $40,000.
According to public works civil engineer Clay Thistle, the current agreement with Corazón is for services such as community center activities, and projects out of Measure V include a public safety partnership, language translation and outreach and ESL classes.
Public safety allocations to date is at $3.5 million. The proposed allocations are $760,619 and would fund an additional police officer, a dispatcher, two firefighters, a public safety administrative analyst, two police cars and repairs to the bathroom at the Healdsburg fire station.
The public safety administrative analyst would be a new role that would focus on running the emergency operations center for the city in the event of an emergency.
Healdsburg Police Chief Kevin Burke said he sees this role as a “critical position.”
In regard to city facilities, allocations to date are $1.9 million. The new proposed allocation is $282,011. The allocation would fund the replacement of the city’s old communication tower, floor replacement in the dispatch area of the Healdsburg police station as well as a new HVAC system. It would also
provide funds for tree removal at the fire station, a new sanitizer for the senior center kitchen and the installation of an additional door in the conference room at the Healdsburg Community Center.
There were no public comments heard on the matter, but Councilmember Joe Naujokas asked about how they can focus on building up bike infrastructure with the measure, however, the bike sign program that the council OK’d at their last meeting will use Measure V funds for the addition of bike signs.
Mayor Leah Gold asked about the fate of the community benefit grant program and expressed concern about how groups who rely on the program will continue to be supported.
Ippoliti said the community benefit grant fund was funded only one year from Measure V funds.
“That one year they had extra asks so they used some Measure V money to supplement the money in the community benefit grant fund,” she said. “The money you have been using the last couple of years has been coming from the community benefit grant fund and that fund is down to one more year that you have already allocated for.”
“So what we are looking at now is not having the community benefit grant fund,” Gold asked.
Ippoliti said that is correct because the community benefit grant fund is running out of funds. The only other funding source available for that would be the general fund.
Mickaelian said to be clear, the next fiscal year is taken care of, but the following fiscal year is when the city will have to address what to do with the lack of community benefit fund funds.
Overall, councilmembers supported the staff recommended allocations.
“I like that we are staying consistent with allocating funds to things that community members like,” Gold said.
With unanimous direction from council to follow the proposed allocations, staff will proceed with the budget based on the proposal that was presented.
Next step for the measure is bringing it to the voters to try and get the sales tax extended. The Measure V tax automatically sunsets after 10 years, which is why the measure is being placed on the November 2020 ballot.
The total estimated Measure V revenue for fiscal year 2020-21 is $2,127,130, according to Ippoliti.
