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Home My WebLink About2026 05-04 CC AGENDA PKT - SPECIALAGENDA Special Meeting City Council Chamber - 1243 National City Boulevard, National City, CA Ron Morrison, Mayor Stephen Manganiello, Acting City Manager Luz Molina, Vice-Mayor - District 1 Heidi Skinner, Interim City Attorney Jose Rodriguez, Councilmember -District 2 Shelley Chapel, MMC, City Clerk Ditas Yamane, Councilmember – District 3 Marcus Bush, Councilmember – District 4 _______________________________________________________________________ The City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency Thank you for participating in local government and the City of National City Council Meetings. Meetings: Regular City Council Meetings are held on the first and third Tuesday of the month at 6:00 p.m. Special Closed Session Meetings and Workshops may be same day, the start time is based on needs. Check Special Agendas for times. Location: Regular City Council Meetings are held in the Council Chamber located at City Hall, 1243 National City Boulevard, National City, CA 91950, the meetings are open to the public. Agendas and Material: Agendas and Agenda Packet for items listed are available on the City website, and distributed to the City Council no less than 72 hours before the City Council Meeting. Sign up for E-Notifications to receive alerts when items are posted. Public Participation: Encouraged in a number of ways as described below. Members of the public may attend the City Council Meeting in person, watch the City Council Meeting via live web stream, or participate remotely via Zoom. Recording of Meetings are archived and available for viewing on the City’s website. To listen to the live stream in Spanish, you must register for Zoom prior to the meeting for access. All Zoom registration must be completed two (2) hours prior to the City Council Meeting for access. Public Comment: Persons wishing to address the City Council on matters not on the agenda may do so under Public Comments. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker’s Slip to the City Clerk before the meeting or immediately following the announcement of the item. All comments will be limited up to three (3) minutes. The Presiding Officer shall have the authority to reduce the time allotted to accommodate for a large number of speakers. (City Council Policy 104) All written comment must be submitted no later than four (4) hours prior to the start of the meeting to allow time for distribution to the City Council. EFFECTIVE JANUARY 1, 2023 All Contributions to Candidates and Current Elected Officials are required to self-report a Declaration of Campaign Contribution to a Councilmember of more than $250 within the past year (effective Jan 1, 2023). This report may be included on the Public Comment Speaker Slip to be completed prior to the City Council Meeting. Spanish Interpretation Services: Spanish Interpretation Services are available; please contact the City Clerk before the start of the meeting for assistance. clerk@nationalcityca.gov American Disabilities Act Title II: In compliance with the American Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Title II. Any person with a disability who requires a modification or accommodation to participate in a meeting should direct such request to the City Clerk’s Office (619) 336-4228 at least 24 hours in advance of the meeting. AGENDA Special Meeting City Council Chamber - 1243 National City Boulevard, National City, CA Ron Morrison, Mayor Stephen Manganiello, Acting City Manager Luz Molina, Vice-Mayor - District 1 Heidi Skinner, Interim City Attorney Jose Rodriguez, Councilmember -District 2 Shelley Chapel, MMC, City Clerk Ditas Yamane, Councilmember – District 3 Marcus Bush, Councilmember – District 4 _______________________________________________________________________ The City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency Gracias por participar en las reuniones del gobierno local y del Consejo de la Ciudad de National City. Reuniones: Las reuniones regulares del Consejo Municipal se llevan a cabo el primer y tercer martes del mes a las 6:00 p.m. La reunión especial de sesión privada y los talleres pueden ser el mismo día, la hora de inicio se basa en las necesidades. Consulte las agendas especiales para conocer los horarios. Ubicación: Las reuniones regulares del Concejo Municipal se llevan a cabo en la Cámara del Consejo ubicada en el Ayuntamiento, 1243 National City Boulevard, National City, CA 91950, las reuniones están abiertas al público. Agendas y Material: Las Agendas y el Paquete de Agenda para los temas enumerados están disponibles en el sitio web de la Ciudad y se distribuyen al Concejo Municipal no menos de 72 horas antes de la Reunión del Concejo Municipal. Regístrese para recibir notificaciones electrónicas cuando se publiquen artículos. Participación pública: Se fomenta de varias maneras como se describe a continuación. Los miembros del público pueden asistir a la Reunión del Concejo Municipal en persona, ver la Reunión del Concejo Municipal a través de la transmisión web en vivo o participar de forma remota a través de Zoom. Las grabaciones de las reuniones están archivadas y disponibles para su visualización en el sitio web de la Ciudad. Para escuchar la transmission en Español, registration por Zoom es requerido antes del comienzo de la sesión. Todo registro para la trasmisión por Zoom debe completarse dos (2) horas antes de la Reunión del Concejo Municipal. Comentario Público: Las personas que deseen dirigirse al Concejo Municipal sobre asuntos que no están en la agenda pueden hacerlo bajo Comentarios públicos. Quienes deseen hacer uso de la palabra sobre los temas del programa podrán hacerlo cuando se esté examinando el tema. Por favor, envíe una solicitud del orador al Secretario de la Ciudad antes de la reunión o inmediatamente después del anuncio del artículo. Todos los comentarios estarán limitados a tres (3) minutos. El Presidente tendrá la autoridad para reducir el tiempo asignado para dar cabida a un gran número de oradores. (Política del Concejo Municipal 104) Si desea enviar comentarios por escrito, envíe un correo electrónico a la Oficina del Secretario de la Ciudad al menos 1 hora antes de la Reunión del Consejo Municipal para dar tiempo a la distribución al Consejo Municipal. Todos comentarios deben estar sometidos a más tardar cuatro (4) horas antes del comienzo de la sesión. A PARTIR DEL 1 DE ENERO DE 2023 Todas las contribuciones a los candidatos y funcionarios electos actuales deben autoinformar una Declaración de contribución de campaña a un concejal de más de $ 250 en el último año (a partir del 1 de enero de 2023). Este informe puede incluirse en el Recibo del orador de comentarios públicos que se completará antes de la reunión del Concejo Municipal Servicios de interpretación en español: Los servicios de interpretación en español están disponibles, comuníquese con el Secretario de la Ciudad antes del inicio de la reunión para obtener ayuda. Título II de la Ley de Discapacidades Americanas: En cumplimiento con la Ley de Discapacidades Americanas de 1990, las personas con discapacidad pueden solicitar una agenda en formatos alternativos apropiados según lo requerido por el Título II. Cualquier persona con una discapacidad que requiera un modificación o adaptación para participar en una reunión debe dirigir dicha solicitud a la Oficina del Secretario de la Ciudad (619) 336-4228 al menos 24 horas antes de la reunión. State of California ) )ss. County of San Diego ) AFFIDAVIT OF POSTING I, Shelley Chapel, MMC, City Clerk of the City of National City, hereby declare under penalty of perjury that this notice of a Special Meeting – Budget Workshop was called by the City Council of the City of National City was posted and provided on Thursday, April 30, 2026, at 6:00 p.m. Said meeting to be held Monday, May 4, 2026, at 12:00 p.m. in the City Hall, City Council Chambers, 1243 National City Blvd., in the City of National City, California. Said notice was posted on the Bulletin Boards in front of City Hall and the Library. Shelley Chapel Shelley Chapel, MMC, City Clerk AGENDA City Council Workshop Monday, May 4, 2026, 12:00 p.m. City Council Chamber - 1243 National City Boulevard National City, CA Pages 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE 4.PUBLIC COMMENT (Public Comment will be Restricted to Agenda Items Only) 5.STAFF REPORT 5.1 Fiscal Year 2026-2027 Budget Workshop No. 1 2 Recommendation: Review, Receive Presentation, and Provide Staff Direction. 6.ADJOURNMENT AGENDA REPORT Department: Finance Prepared by: Paul Valadez, Budget Manager Meeting Date: Monday, May 4, 2026 Approved by: Stephen Manganiello, Acting City Manager SUBJECT: Fiscal Year 2026-2027 Budget Workshop No. 1 RECOMMENDATION: Review, Receive Presentation, and Provide Staff Direction. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The Fiscal Year 2026-2027 preliminary budget will be presented at Workshop No. 1 as an introduction, offering the City Council and the public a high-level view of the City’s financial position as it enters Fiscal Year 2027. FINANCIAL STATEMENT: Not Applicable at this time. RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Balanced Budget and Economic Development ENVIRONMENTAL REVIEW: This is not a project under CEQA, and is therefore, not subject to environmental review. CCR15378; PRC 21065. PUBLIC NOTIFICATION: The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A – PowerPoint Presentation – Preliminary FY2027 Budget Workshop Page 2 of 25 May 4, 2026 Preliminary General Fund Budget Fiscal Year 2026/2027 Page 3 of 25 Budget Highlights •382.0 FTE permanent/benefited positions (276.0 General Fund) •Includes annualized cost of 3.0 FTE added mid -year FY26 •$1.9 Million GF increase for the CalPERS Unfunded Actuarial Liability •$1.4 Million GF increase in General Liability Insurance Premiums •$1.0 Million transfer to CIP Fund •Budget reflects annualized COLA/equity increases given in FY26, as well as scheduled FY27 increases May 4, 20262|Page 4 of 25 Sales Tax Revenues May 4, 20263| - 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Mi l l i o n s Sales Tax Trend Line 3.6% Growth Rate Page 5 of 25 Property Tax Revenues May 4, 20264| - 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 2019 2020 2021 2022 2023 2024 2025 2026 2027 Mi l l i o n s Property Tax Trend Line 5.9% Growth Rate Page 6 of 25 General Fund Revenues Preliminary FY 2027 Budget May 4, 20265| FY 2026 FY 2027 FY 2026 Budget FY 2026 Budget Adopted Prelim to FY 2027 to FY 2027 Budget Budget Prelim Budget Prelim Budget Sales & Use Tax 24,261,000 24,723,000 462,000 1.9% District Transaction Tax 16,868,000 18,125,000 1,257,000 7.5% Property Tax 5,082,384 4,946,900 (135,484)(2.7%) Property Tax Allocated (2,296,946)(2,243,150)53,796 (2.3%) Property Tax in Lieu of VLF 9,837,550 9,896,000 58,450 0.6% Other Revenues 19,946,009 20,914,153 968,144 4.9% Transfers-in 5,500 5,500 -0% Total 73,703,497 76,367,403 2,663,906 3.6% Page 7 of 25 Other Revenues ($20.9) •$4.1 Million Successor Agency Residual Balance Distribution •$3.2 Million Franchise Fees •$2.0 Million Transient Lodging Tax •$1.5 Million Investment Earnings •$1.4 Million Port Authority Reimbursement •$900,000 Land Rental Income •$730,000 Overtime Reimbursements •$408,000 School District Contract Reimb •$400,000 Cannabis Revenue (does not include sales tax) •$226,000 Las Palmas Golf Course Rental Income •$6.0 Million Total Other Revenues May 4, 20266|Page 8 of 25 General Fund Expenditures May 4, 20267| - 20.00 40.00 60.00 80.00 100.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Mi l l i o n s GF Expenditures Trend Line 5.3% Growth Rate Page 9 of 25 General Fund Expenditures Preliminary FY 2027 Budget May 4, 20268| Administration City Attorney Finance City Clerk HR City Manager FY 2026 FY 2027 FY 2026 Budget FY 2026 Budget Adopted Prelim to FY 2027 to FY 2027 By Departments:Budget Budget Prelim Budget Prelim Budget Police 33,304,639 36,523,067 3,218,428 10% Fire 14,910,730 16,995,090 2,084,360 14% Engineering & Public Works 4,296,262 4,722,628 426,365 10% Community Development 3,862,834 4,243,374 380,540 10% Community Services 3,033,251 3,321,130 287,878 9% Mayor/City Council 1,073,064 1,073,374 310 0% Administration 9,038,369 9,651,507 613,137 6.8% Non-Departmental 13,454,134 15,983,890 2,529,756 19% Total 82,973,283 92,514,058 9,540,775 11.5% Page 10 of 25 Non-Department Expenditures •$4.7 Million Transfer for 2021 POB Bond Payment* •$4.6 Million Transfers Out to Subsidized Funds (Library, Parks, Nutrition) •$4.4 Million UAL Payment •$1.0 Million Transfer to CIP Fund •$460,000 Transfer for Retiree Health •$390,000 Debt Service Payment (Energy Bonds) •$310,000 General Operating Expenses •$15.9 Million Total Non-department Expenditures May 4, 20269| * Previously Part of Labor Costs Page 11 of 25 Transfers to Other Funds •$4.7 Million Transfer for 2021 POB Bond Payment* •$2.5 Million Transfer to Library Fund •$1.4 Million Transfer to Park Maintenance Fund •$1.0 Million Transfer to Capital Improvement Fund •$675,000 Transfer to Nutrition Fund •$460,000 Transfer for Retiree Health Benefits Fund •$18,369 Transfer to Mile of Cars LMD •$10.8 Million Total Transfers May 4, 202610| * Previously Part of Labor Costs Page 12 of 25 Transfers and ISF Charges May 4, 202611| General Fund Transfers Library Park Maint. Nutrition Health Retirement POB CIP General Fund ISF Charge Building Maint. Vehicle Maint. Vehicle Replacements Vehicle Lease IT Maint. General Liab. InsPage 13 of 25 General Liability & Workers Comp Ins Funds May 4, 202612| FY 2026 Adopted FY 2027 Prelim Difference General Liability Ins Premiums 2,662,300 3,994,400 1,332,100 Workers Comp Ins Premium 377,000 412,000 35,000 Claims (W/C & Gen Liab.)4,248,000 4,700,000 452,000 Labor 127,965 138,235 10,270 Operating Expenses 175,450 175,850 400 Total 7,590,715 9,420,485 1,829,770 Page 14 of 25 Internal Service Fund Charge Cost to the General Fund May 4, 202613| FY 2026 Adopted FY 2027 Prelim Difference Building Maintenance Charge 3,269,006 3,703,528 434,522 Vehicle Maintenance Charge 1,113,781 1,282,402 168,621 Vehicle Replacement Charge 827,870 1,589,863 761,993 Vehicle Lease Charge 430,500 509,780 79,280 IT Maintenance Charge 2,472,042 2,937,720 465,678 General Liability Charge 3,456,377 4,881,088 1,424,711 Total 11,569,576 14,904,381 3,334,805 Page 15 of 25 Transfers to Other Funds May 4, 202614| FY 2026 FY 2027 Difference Library 2,225,474 2,544,398 318,924 Park Maintenance 1,028,759 1,415,916 387,157 Nutrition Fund 503,396 674,832 171,436 Retirement Fund 400,000 460,000 60,000 Mile of Cars LMD 18,369 18,369 -0 Subtotal 4,175,998 5,113,515 937,517 POB 4,817,793 4,722,723 (95,070) CIP/Transfer 1,000,000 1,000,000 - Total 9,993,791 10,836,238 842,447 Page 16 of 25 CalPERS UAL Projections FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Safety 907,678 1,824,693 2,982,531 3,633,000 4,269,000 4,313,000 4,313,000 Misc 549,456 1,205,212 2,137,829 2,522,000 2,665,000 2,691,000 2,691,000 Total UAL 1,457,134 3,029,905 5,120,360 6,155,000 6,934,000 7,004,000 7,004,000 May 4, 202615| - 2 4 6 8 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Mi l l i o n s Page 17 of 25 May 4, 202616| FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 FY2024 FY2024 Category Adopted Actual Adopted Actual Adopted Actual Adopted Actual Sales & Use Tax 17,281,000$ 22,139,734$ 20,397,106 23,849,255 23,905,000 22,979,943 24,394,000 23,833,880 District Transactions & Use Tax 11,293,000$ 13,118,582$ 12,654,000 15,246,516 14,951,000 15,470,285 15,004,000 16,261,936 Property Tax 2,436,700$ 2,290,019$ 2,372,998 2,407,624 2,497,353 2,565,499 2,598,287 2,685,138 Property Tax in Lieu of VLF 7,400,000$ 7,634,768$ 7,741,006 7,895,180 8,223,000 8,265,143 8,599,000 8,850,464 Other Revenues 13,662,228$ 20,235,374$ 13,588,107 15,339,601 14,997,724 20,288,931 17,156,742 22,122,793 Transfers In 5,500$ 5,500$ 5,500 2,065,500 2,005,500 2,005,500 2,005,500 2,005,500 Total Revenues 52,078,428$ 65,423,977$ 56,758,717 66,803,677 66,579,577 71,575,301 69,757,529 75,759,711 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 FY2024 FY2024 Category Adopted Actual Adopted Actual Adopted Actual Adopted Actual Personnel Services 41,057,517$ 42,054,142$ 41,045,469 41,330,388 45,410,890 44,550,675 46,159,564 41,060,996 Maintenance & Operations 6,837,486$ 7,178,208$ 6,863,263 7,152,068 7,776,245 8,076,736 8,828,402 8,834,595 Capital Outlay 175,430$ 152,734$ 175,430 151,179 143,500 330,406 160,000 1,939,246 Capital Improvement Projects 800,000$ 3,560,732$ 2,750,000 1,994,645 1,900,000 2,396,265 3,150,000 549,489 Internal Service Charges and Reserves 7,824,869$ 7,717,869$ 7,726,142 7,610,451 8,506,822 8,381,822 9,506,304 9,493,733 Transfers Out 2,100,617$ 2,368,520$ 1,993,910 2,883,446 2,557,210 2,567,210 2,999,446 8,260,666 Total Expenditures 58,795,919$ 63,032,205$ 60,554,214 61,122,177 66,294,667 66,303,113 70,803,716 70,138,725 Gain/(Use) of Fund Balance (6,717,491)$ 2,391,772$ (3,795,497) 5,681,500 284,910 5,272,187 (1,046,187) 5,620,986 General Fund Revenues and Expenditures - Adopted vs Actuals Page 18 of 25 General Fund Vacancy Snapshot May 4, 202617| Title Count Est Annual Cost Administrative Technician 1.00 88,029 Animal Regulations Officer 1.00 85,715 Community Services Officer 2.00 155,079 Crime & Intelligence Analyst 1.00 107,142 Deputy City Manager 1.00 272,409 EMS Coordinator 1.00 159,280 Executive Assistant II 1.00 105,576 Fire Captain 1.00 163,711 Fire Inspector II 1.00 113,219 Firefighter 1.00 124,517 Human Resources Manager 1.00 171,205 Plan Checker 1.00 87,037 Police Corporal 3.00 589,148 Police Dispatcher 4.00 398,614 Police Officer 5.00 794,516 Police Sergeant 1.00 196,365 Property & Evidence Spec II 1.00 84,083 Recreation Center Supervisor 2.00 194,498 TOTAL 29.00 3,890,141 Page 19 of 25 Reserve Balances May 4, 202618| Reserves 6/30/2025 Est. Balance 6/30/2026 Est. Balance Target Policy Level OPEB Trust Reserve 3,827,075 3,827,075 3,866,000 80% of OPEB Liability Pension Trust Reserve 7,809,495 7,809,495 10,240,720 2 Years of UAL Payments (based on FY27 UAL) Facility Maintenance Reserve 2,880,000 2,880,000 3,735,000* 4.5% of General Fund Operating Expenditures Economic Contingency Reserve 12,800,000 11,800,000 16,600,000* 20% of General Fund Operating Expenditures Unassigned Fund Balance 23,394,613 13,139,146 8,300,000* 10% of General Fund Operating Expenditures Total 50,711,183 39,455,716 42,741,720 *Based on FY26 $83M adopted operating budget Page 20 of 25 General Fund Expenditures Preliminary FY 2027 Budget May 4, 202619| FY 2026 FY 2027 FY 2026 Budget FY 2026 Budget Adopted Prelim to FY 2027 to FY 2027 Budget Budget Prelim Budget Prelim Budget Personnel Services 54,165,445 61,373,602 7,208,158 13.3% Maint & Operations 9,890,698 9,606,239 (284,459)-2.9% Capital Outlay 255,773 255,773 (0)0% Debt Services 554,377 418,913 (135,464)-24.4% Internal Svc Chgs 8,113,199 10,006,793 1,893,594 23.3% Transfers Out 9,993,791 10,836,238 842,447 8.4% Total 82,973,283 92,497,558 9,524,275 11.5% Net Surplus/(Deficit)(9,269,786)(16,130,155) Page 21 of 25 General Fund Expenditures Preliminary FY 2027 Budget May 4, 202620| FY 2026 FY 2027 FY 2026 Budget FY 2026 Budget Adopted Prelim to FY 2027 to FY 2027 Budget Budget Prelim Budget Prelim Budget Personnel Services 54,165,445 61,373,602 7,208,158 13.3% Maint & Operations 9,890,698 9,606,239 (284,459)-2.9% Capital Outlay 255,773 255,773 (0)0% Debt Services 554,377 418,913 (135,464)-24.4% Internal Svc Chgs 8,113,199 10,006,793 1,893,594 23.3% Transfers Out 9,993,791 10,836,238 842,447 8.4% Total 82,973,283 92,497,558 9,524,275 11.5% Net Surplus/(Deficit)(9,269,786)(16,130,155) Use of Unassigned Fund Balance 8,269,786 Economic Contingency Reserve 1,000,000 Page 22 of 25 General Fund Unassigned Fund Balance May 4, 202621| Projected Ending Unassigned Fund Balance FY 2025 $ 23,394,613 Less Projected Deficit FY 2026 (10,255,467) Projected Ending Unassigned Fund Balance FY 2026 13,139,146 Less Projected Deficit FY 2027 (16,130,155) Projected Ending Unassigned Fund Balance FY 2027 $ (2,991,009) Page 23 of 25 Next Steps May 4, 202622| •Schedule Budget Workshop #2 •Deficit Mitigation •Budget Reductions •Revenue Initiatives Page 24 of 25 Discussion and Questions Page 25 of 25