Sacramento City Council Meeting Summary (February 24, 2026)
I hear things like that is a key word.
So the time frame for the day collection is not ideal.
All right, we're good.
Anytime I don't have it.
That's always different something.
Ready whenever you are.
Yeah, okay.
Please call the meeting to order the Sacramento City Council.
Please call the roll.
Councilmember Kaplan?
Here.
Councilmember Dickinson?
Here.
Vice Mayor Salamantes.
Councilmember Pluckybaugh.
Councilmember Maple?
Here.
Mayor Proton Gera.
Councilmember Jennings?
Here.
Councilmember Vang?
Here.
Mayor McCurdy?
Here.
You have a quorum.
Thank you.
Councilmember Maple, please lead us in the pledge and land acknowledgement.
Certainly.
Please rise if you are able.
For the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands to the original people of this land, the Nissanan people, the Southern Maidu, Valley and Plains Miwok, Putwin Winchan peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe.
May we acknowledge and honor the native people who came before us and still walk beside us today on this ancestral lands by choosing to gather today in the active practice of acknowledgement and appreciation for Sacramento's indigenous people's history, contributions, and lives.
Remain standing, salute and pledge.
I pledge allegiance to the flag of the United States of America and to the Republic for which it stands.
Indivisible with liberty and justice for all.
Next we have the consent calendar.
We have 17 items on the consent calendar, and I have one speaker for item number 11.
Yes.
Lambert?
Number 11, it talks about suspension of competitive bidding.
This is a very slippery slope.
You've been doing that for a while.
And when you are a business owner, you want to be able to bid on it.
Whatever it is, you know, and I'll give you an example of why.
Now, can we use this today?
The overhead.
Because last night I was at Measure U commission and they were using it.
So this is gonna become a freedom of speech violation of the First Amendment.
Because there's no excuse to not let us show what we're gonna show.
So since I can't show it to you, then I have the right to show it to the public.
This is the Sacramento B, and it talks about an example of why you shouldn't have competitive bidding.
A guy at Cap Radio, he was able to get contracts for his family without competitive bidding, and I'm glad they called him because it's a whole web of people that are connected to it.
Shout out to the Sacramento B.
That's what happens when you don't have competitive bidding.
It can get in the hands of the wrong person, and they can give the contracts to family and friends.
This is just an example.
I own a cheesecake business.
You have to bid on different contracts, and we never know who was the one that selected it.
We were we found out right here that he had relatives that helped him get the contract.
He wasn't qualified.
That's a terrible thing to do is no competitive bidding.
My question is who awards the contract from the staff.
Thank you for your comment.
I have no more public speakers.
Okay, thank you.
Council members.
Councilmember Dickinson.
Thanks, Mayor.
I just wanted to make a quick comment about item five, the Norwood mobility plan that presumably we're going to adopt this this afternoon.
This is a completion of a of a lot of work.
Because this is a corridor which is in bad need as a number of our corridors are uh for being addressed to slow traffic down, increase safety, increase pedestrian and bicycle uh access.
Uh so this is a uh represents an important step and um Sharice Jennifer, everybody uh who's worked on this, uh thanks for your for your work.
Thanks to the community members for participating.
Uh and now the next step is implementation.
Maybe it's a good, maybe it's a good location for a quick build project one of these days.
So uh I'm very pleased to see this uh on the on the agenda this afternoon.
Thanks, Mayor.
Thank you, Councilmember Kaplan.
Want to make quick comments on item five and item eleven.
I don't know how uh if if you want me to just go ahead and we're going by a different slightly different order.
Go ahead.
Thank you, Mayor.
Um, I just want to echo the comments made by Councilmember Dickinson, and then Miss uh Donlan Wyatt, if you want to come up just for a quick second, because Roger started a c uh a question but made it a statement, and I actually uh want to hear because with this Norwood mobility plan, um, I love our plans, but as we've always discussed, it's it's dependent on funding.
But in the meantime, are there parts of quick builds that we can do that um can make this area safer and start preparing residents for the road diet and and uh implementing the mobility plan?
Councilmember Kaplan, it's good to see you with me is Sharice Padilla, who is the project manager for the Norway Mobility Plan.
Um, most likely, yes.
And so, as you know, we're building our quick build team and Megan Carter, who is the division manager for transportation is leading that.
We will certainly put that seed in her area of expertise so that she can look at whether or not there's something on Norwood that can be a quick build.
It is a priority project in the transportation priorities plan, and we will endeavor to move that project forward.
And thank you.
I think that's a great way.
You guys have come up with a great plan, but what's the next step and how do we work with different departments where this doesn't naturally overlap to to see if we can make uh interim measures to make it safer?
Also considering all the items we heard this morning of how do we increase walkability and and make Sacramento safer?
So um thank you for that.
Uh, I just really appreciate thank you, Councilmember.
And then on item 11.
Um, I am really excited to see we are getting ready to uh, you know, refresh, give old Sacramento a little refresh.
Um, and uh Mr.
City Attorney, just quick question because somebody brought up, you know, there are abilities when you suspend competitive bidding.
Uh can you like I saw it said, you know, while we might suspend the traditional competitive bidding, um, does going through the RFP process, RFQ process still give us protections at the city?
You're on.
No, no, it's not.
Well, no, you're coming.
One more time.
Nope, you're good.
Stop.
Okay, thank you.
Yes, uh the suspension for competitive bidding requires uh justification, which it was provided in staff report, but we do have uh opportunities for protections when we do RFPs.
Yes.
Okay, I and then I think it's it's like we we in council might know it, and you as the attorney, you know.
I always think it's important to explain when the public where they may misunderstand because we know how people have misused uh funds, but that there are are still protections in place when we we do something like this, so there isn't like that insider track of gift uh to somebody's company.
Yes, there's a number of conflicts of interest that we review, we consider right before um awarding these contracts.
Thank you.
Um I appreciate you answering a couple of my questions, and I'm just really excited to see the facelift uh for old Sacramento.
Thank you, Mayor.
Uh I will be happy to move the consent calendar, but uh record my no vote for item 17.
Uh this is a consultant contract of 749,929 dollars uh to for the measure L funds.
And it is, you know, per the charter of the language that was passed, we have to do some evaluations on the programs to see whether it had impacts in the two to five years.
And I feel that these funds can better be used for an internal Yipse employee to do the evaluations throughout the year and to give this department more capacity when it comes to allocating these funds using these funds and providing on-site eyes like year-round.
So I'm just gonna be a record for no on this item.
Okay.
Aye.
Any noes or abstentions noted on item number.
And I will join Telamontes on item number 17 as a no vote.
Okay, the consent calendar passes with two no votes for item number 17.
Councilmember Talmontes and Councilmember Kaplan.
Yes.
Next item, please.
Moving on to item number 18 on the discussion calendar, the Sacramento Housing and Redevelopment Agency Annual Comprehensive Financial Report for the year ending December 31st, 2024, and single audit.
Good afternoon, mayor, members of the council.
My name is Kay Junta.
I'm Assistant Director of Finance for uh Sacramento Housing Redevelopment Agency today.
Our auditor Mandy Merchant from Clifton Lawrence and Allen will be presenting on the 2024 audit financial statements and single audit.
Thank you again.
Good afternoon, everyone.
First of all, thank you.
It's an honor to be here.
It's my first time presenting in front of you all.
So I'm gonna get this started.
So again, my name is Mandy Merchant.
I'm a partner at Clifton Larson Allen.
I have been working in um the housing authority sector for my entire career of 25 years.
So I work with housing authorities across the United States.
So I'm glad to be here to help present um the results of SHRA.
So really quickly, the agenda for today is kind of to go over the audit scope and the process that we use as part of this audit.
We're to talk through the audit opinions and the communications that are required to governance.
Um, gonna go over some financial um highlights for SHRA as a whole, and then for the city programs, um, talk about some significant audit changes and then the upcoming gasby pronouncements.
I'll kind of just like touch on at a very high level.
Okay, so first of all, for our ARP scope, um the audit that we performed for 1231 2024 included um about five things I went when I speak about.
The first three are the audit opinions that we have issued.
Um we issued a report on the organization's financial statements, which I like to say over the numbers.
We then did a report over the internal controls over financial reporting compliance.
So looking at the internal controls, make sure everything is functioning as expected at the agency, and then our last report is a report on controls over the compliance of the major programs.
So that's looking at the single audit since the agency receives over $750,000.
The last two, um, we do have a required governance that went to the SHRRA board, and that just kind of summarizes the overall audit process, which I have a slide on here about that I'll go over with you all.
And then we do a required submission to the real estate assessment center because they're under the guidance of HUD and then the federal audit clearing house.
Okay.
Alright, so quickly on our audit process.
Obviously, as auditors, we are not able to look at every single number.
We do have a risk-based approach, and our risk-based approach is developed based on our industry experience with other housing authorities.
And then what we do is kind of look at the internal controls of the agency.
We look at how they're dispersing funds, how they're collecting money, how they're paying their people, ensuring that there's checks and balances in place.
We also look at revenue recognition.
SHRA receives a significant amount of money from the federal, state, and local places.
So we'd look to make sure that's properly recorded in the proper period.
We'll talk about significant estimates that are within these financial statements in the later slide.
And then within the statements also, you know, SHRA provides a lot of funding out to the community in the forms of notes receivable and which is all financed by debt that they issue.
The single audit, which is a very heavy lift of this agency, they have a lot of programs.
We'll talk about that on another slide.
And then lastly, the group audit, which impacts the city portion.
There's related parties that are out there that reported under these financial statements.
And at any point, if anyone has a question, just jump in.
Alright, so let's talk about the results of the audit.
So first off, the audit opinions.
As I mentioned, there was three reports that we issued.
So first off, the financial statements, we had an unmodified opinion, or that means a clean opinion.
So that's great to hear.
For the federal wards, we had two.
We had a unmodified opinion over the internal controls.
And then on the federal wards, we had an unmodified opinion except for two programs were qualified, and we'll talk about that in the next slide.
For the audit results, there was one material weakness noted for the financial statements, but there was no significant deficiency, so just one finding under that category.
And then for federal wards, we did have two material weaknesses and three significant deficiencies that we're gonna go into details about all these in the next slides.
Okay.
So the next slide, just so you guys give see what we are testing.
So for this audit this year, you can see that we tested six different programs.
And the first two programs, the public and Indian housing and the housing choice voucher program, they were the ones that resulted in a qualified opinion, and that was because there was a material weakness over both of those programs, which led us to have to qualify these for this year.
Okay, so you should have a copy of the single audit reports.
If you wanted to follow along on the details, which was the smaller report, you should have gotten a copy of.
Looking at the first one, this is the financial close process.
So basically, this finding, as part of our audit, you know, we receive a trial balance and we bring in our audit procedures, and based on our audit procedures, there was significant adjustments that we had to make to ensure the financial statements were not materially misstated.
So you can kind of see further details about that in the actual audit report.
Uh, we go to the next one.
So I'm gonna skip through the next three.
The next three don't impact um the city.
So this is all part of the housing choice voucher program that's run underneath the county.
Does anyone have any objections to that?
Or would you like me to go through these?
Go through them?
Okay.
So the first one, so for the housing choice voucher program, uh, we look over eligibility inspections.
So as part of that, we reviewed 60 five 60 files, excuse me, and noted 23 out of 60 of them were not done timely.
They were done, they were just not done in a timely fashion.
So this is the material weakness that resulted in this program being qualified.
Okay, the next one is the still the housing choice voucher program for the housing quality standards failed inspections.
So we reviewed 40 files that had failed inspections during the year, and that resulted in one of them that the failed inspection had not been re-inspected in a timely manner.
Timely matter either means 24 hours because of the emergency violation or within 30 days.
All right, for 2024 just 004 again back to the housing quality inspection, but this is for the annual inspections that must be conducted, and this one we had one out of 60 that was noted that an inspection has not been completed since 2022.
So it was outside that 365 days.
Okay, on this one, 2024-005, which does result in city being involved.
This was over the public housing eligibility, and this did result in a material weakness.
So during our testing at 40 files, we did note 16 out of 40 that had exceptions.
So you can see on here was city.
Um there were eight instances where the annual certification was not completed on annual basis.
So again, it was completed, just wasn't completed on timely basis.
Um county had seven instances of the same with the annual certification was not completed on an annual basis, and then there was one at county where the annual search certification was not completed in 2024, so was it was over the the that hasn't been done since 2022.
So that one is a missing um certification.
And then last step, which this is city and county was the emergency solutions grant.
Um so this is a grant that you pass through money out to sub-recipients, and we reviewed 29 payments, and as a result of that, we noticed 10 of them were not paid within 30 days.
This grant requires payment out to sub-recipients to have them within 30 days.
So they were paid out, just not within that timeline.
So any questions on any of these findings.
The SHRA staff is here in case there's any specific details that anyone has on any of those.
If not, I'll move to the next slide.
Next slide.
Okay.
Oh, sorry, so we're not going to be considered job.
I don't want that job.
No, don't want that job.
Thank you.
Um, thank you for this.
And just looking at uh the audit, because I think it's important because we are having discussions right now, city and county, um, that we we slow down and and kind of look at what this means.
And what I'm seeing, um, and correct me if I'm wrong, uh, when I look at like where there have been weaknesses or deficiencies, um, I look at kind of the cause and what it says is the cause of like maybe a not enough uh internal controls.
So when they get this report, what is the next step that is used with SHRA to address this?
I would I can speak on that to begin.
There is a corrective action plan that's obviously developed.
Um I know right now it's revisiting you know what controls are in place to ensure, like you know, for the annual inspections that they're done timely.
Um, so there is some change up internally.
So I don't want to speak for anyone at SHRA.
So I don't know if anyone wants a comment on that.
Yeah, I would love to hear if that's yeah.
Good afternoon.
My name is Mary Liz Paulson, I'm the director of the housing choice voucher program.
So for the inspections, um, there were two findings as you've heard.
One um was when the inspection was not uh rescheduled, it had failed and it was not rescheduled timely.
This file has been corrected, and as a result, we've created reports and we will be monitoring those reports on a regular monthly basis so that we don't have that recurring again.
So the other inspection issue was there was a missing inspection, and so again, we have created reports that we will be tracking and then meeting regularly on a monthly basis to review to ensure that that does not happen again.
Which thank you because I'm I'm looking at more of like internal controls.
So part of then my question goes to why weren't these controls put in place, and now I know you're generating reports, but let's say you retire.
What's put into place though, it becomes part of the norm, so we don't have these internal controls other than to say the controls were there and a human being failed.
Right, so there are different levels of management that are reviewing as well.
So not only is the supervisor who is running the reports doing it, but it will be part of our regular management meetings that we are reviewing as well.
So it involves more than just myself as the director.
Thank you.
I appreciate that.
And then just one more question for you.
Um, as I'm as I'm looking at this, it says, you know, the cost or the impact, and most are say unknown or or basically no cost.
How do we determine the impact?
Yeah, so it's all about the population we receive.
So if we're receiving a population of just a listing of failed inspections, you don't really have a number.
Like, you know, I'm not getting like a dollar value.
So that's when it becomes unknown.
Luckily for all these, we did not have a calculation issue.
So like the eligibility issues were they weren't done timely, but it wasn't that they miscalculated how much the individual should pay, or the housing authority should be paying on on behalf of an individual.
But which is good.
That's where you don't want to be.
These are all just kind of like just timeliness.
You know, unfortunately, there's this sole recovery of COVID many years past.
We're still seeing it at the housing authorities across the country.
So all these are although these are findings, they're not bad findings.
You know, it's kind of like a fine.
That's what I was trying to get to.
Is you know, it's normal for audits to have findings, like my next question was gonna be how significant are these findings?
Well, a little a little homework I did last night in preparation for this meeting today.
You know, we've been working with the agency since 2018.
So since 2018, um, you know, pre-COVID, there was not really any many issues.
They had three back in 2018 and zero in 2019, and then COVID happened, and that's where we kind of saw the escalation kind of happen.
So, you know, in 21 we had like you know, seven findings, 22 with eight.
Um last year had 10 findings.
This year we're down to five.
Um, so you know it's it's getting better each year.
So I think that's really in the positive for the agency.
It's you know, kind of like the issues occurred and now the rebuild is occurring, and we're seeing the decrease.
And we're getting ready to start the 2025 audit in the next couple weeks, and again, we're hoping to see a continue decrease of these findings.
Perfect.
Thank you, Mayor.
Okay.
Um, so I have a couple more slides, can't get rid of me yet.
Um, so governance communication, just a couple things I wanted to highlight on this.
Um, on the left-hand side, talking about the overall, um, we had no changes in our plan scope, which means we we came in with a plan to do this audit, and nothing came up that we had to change and double back and change our process.
Um, there was no significant difficulties, we had no disagreements with management, and we're not aware of management having any outside consultations with other accounting firms.
Um, just a couple things on the estimates.
Obviously, these statements can um contain estimates similar to your financial statements.
We have the OPEB and pension, uh, which is estimates that are developed by an actuary or third party.
And then lastly, on the other, I did want to note that you can see they have this, you know, this year or for 2024, we had 46 adjusting journal entries, which you might be like, oh, that's a lot, Mandy.
Um, last year we had 95.
So again, we're improving each year, and that's why I think uh as a council would be something good to hear that the agency is improving year after year.
Okay, so just over the financial activity, I'm gonna kind of hit these on a high point, but something if you guys want to take a look at, this is the the management discussion analysis summarized.
Um, and then just overall, this is SHRA at a total.
Um, and you kind of can see just an increase overall, um, you know, on the assets kind of coming in the door and um increase in the CDBG program, home program, ARPA.
Um, this year was that the kind of sunsetting of the ERA program.
So that one was kind of going to bed, and you should see if you look in the liabilities, um, the liabilities went down, the unearned that was money that was received up front that was finally spent this year on the ERA and the mental health services program.
Um, in a positive note, we did see the pension liability decrease and also the OPEB liability decrease, which is nice.
That means that that CalPERS is performing well, and there's a less liability for everyone in the books right now.
Looking over on the income statement, I think the big one is really the increase in the federal and state and local money, and that primarily is related to the housing choice voucher program, very consistent across the country.
Um, this program, you know, there's not only is the uh lease ups increasing, but also the amount of rent per unit is increasing.
So that's why you see this significant increase of about 20 million on the top line.
If you look down under the operating expenses, you see these housing assistance payments about 20 million.
Um, this sharp decrease in administrative services and services supplies is related to that ERA program.
Um, that all coming to a close, we're seeing that drop in that program.
Um, lastly, down under non-operating revenues, which this does impact city, is that you know, last year was the big sale of RVP group that occurred, and that went out the door, so that was a decrease about 20 million dollars.
That sale occurred last year.
And that property is in operation this year.
So let's just look at city real quickly.
So city, for the most part, kind of a little bit of flip flop of uh current assets and non-current assets.
But um a note on here that um, you know, home and CDBG program.
This presentation is for um what we submit into HUD, and HUD does not require the submission of home and CDBG, but it does have a little bit of impact and the increases and AR during the year and the money being spent out the door before the AR is collected.
Um there was a little bit of shift in presentation under liabilities this year with the accrued interest and long-term liabilities, and then just overall the timing of the payments that were received in for the home and CDBG program.
And then over here, last step, you'll see the the biggest decrease as we kind of talked about previously is that $31 million decrease, which did relate to the overall sale of RBP.
Um, uh also being sold was big trees, pine knolls, riverview.
That was all sold.
That was the three properties if you guys remember for RVP.
Um, some decrease in revenue.
So with the the loss of all those properties being sold, you'll see decrease in revenue, decrease in expenses that kind of all applied here.
Okay, we're not gonna talk about county there.
Okay.
Just quickly over here.
This is more just informational.
You guys can take this home and read more about the GASB standards, but um, just things that happened during the year.
We did implement GASB 100.
It was related to any kind of accounting changes for error and corrections.
Um, if you were to open up in the financial statements, you had in turn to footnote six, you will see that there were some corrections we did this past year, and it was just a new disclosure that was required in a different presentation.
Um GASBY 101, um, this was related to um vacation, sickly, PTO, whatever um agency calls it, and properly recording it to be consistent against the industry.
Um, basically, what they were just finding out GASBY was that this was not kind of consistent presentation, and um it was making it difficult for comparability purposes.
Um, so for next year, so for our 1231 2025 audit, we have about three new standards we're going to implement.
All pretty this one's pretty easy, um, certain risk disclosures.
What this means is there's anything out there that um the the best example I have is just with the HUD money, you know.
The fear that HUD money was going to decrease.
If it were to decrease, we'd have to put in a footnote just letting the you know the reader know that there's been a decrease in the um the revenues coming into the agency, but as of right now, that is not something that we're aware of, so no need to disclose 103.
Um, this is probably the one of the most significant impact.
This is the change up of the financial statements.
So those statements that you all been looking for looking at for years, um, the presentation of the balance sheet changes a little bit, the income statement, and then um the management discussion analysis is going to be a little bit more clear and more consistent for readers.
So this is one you'll probably see in your your um your at your own agency kind of make an impact on the proprietary fund.
Okay, so this one, just some capital assets, changes on the disclosure of capital assets to make them more readable.
Um, no big big changes on this one, and this is actually for um for 2026.
And last up, the GASB implementation guide, which just this overall provides a lot of clarity to a lot of things out there.
We see an implementation guide probably every 10 years.
So for us auditors and accountants, this is exciting times because this really helps out with the stuff we've been doing for for many years.
So that is all I have.
I know I said a lot, but I hope it was informative.
I hope um you got a bit a good picture.
What's going on over at SHRA?
Does anyone have any questions?
Thank you so much for for your presentation.
Uh, let me see if we have any public comments and then we'll take uh questions from the council.
Okay.
One public comment.
Okay, we're gonna do public comment first and then we'll and then we'll have you come back up.
Okay, because I'd have you.
Thank you.
Michael Melton.
Good afternoon.
Um Sacramento has more homeless today than three years ago before Kaiser and Blue Cross gave SHRA uh 45 million dollars.
Numerous programs.
Uh, split the money, I know, but uh there's less programs for the homeless, and there's there's no apartments.
There's still no place for people like myself that still haven't got my keys.
Although uh my account says issued an offer with SHRA.
So I don't know how many, I'm just one, but I don't know how many thousands of people who could maybe be saying, yeah, we got we got these places for and really says issued offer to me, and it's been what February 15th uh 2025 when they say oh you're just waiting for your keys.
So I don't I don't know.
That's that's all I have to say about SHRA just for right now that um the money I don't know.
I don't think it's I don't I don't think it's I don't think it's being dispensed the right way.
Uh I'm sure they're not getting building no apartments.
I mean, I've been waiting over a year for my keys, and I had section eight before that, and then they denied me for that.
Although I got it, they accepted me for that, then denied me because I took too long to get my paperwork in.
So I don't know if SHRA is what SHRA is really doing.
If people are not getting housed and they're denying people that get section eight and then say, oh no, no, we're not gonna give it to you because you took too long, but then take longer to give you uh uh your keys after you've been accepted to another program than it took for you to get um appeal denied and all the time that you waited, they'll you know mess you around.
All right, thank you.
Thank you.
Great.
Um this is a receive and file item.
Do I have any colleagues that have any questions seeing none?
Okay.
Oh, okay.
Oh, Mr.
Shields will follow up uh with you, sir.
We'll get your contact information.
We'll follow up with you.
Okay, all right.
So uh seeing none, moving along to item number 19.
Uh huh.
Oh, oh yes.
Uh Michael Jazzo.
Madam Vice uh Mayor, with your indulgence.
Um, I thought I would take this opportunity just to introduce Chris Warren, who was recently appointed by this body to um uh head up SHRA to be the chief uh chief executive um uh chief direct executive director for the interim period of over the next year to plus or minus a little bit.
So um just want to take an opportunity to uh introduce Chris.
Um she'll be serving in SHRA and um and leave it to that at that.
Okay.
Uh Chris, do you want to come up here and say a few words?
Good afternoon.
I thank you for this opportunity.
I am looking forward to working with the city and the county and the team at SHRA Um over this interim period.
There's a lot of good work happening, and I look forward to enhancing uh programs where we can and if there are improvements to be made to doing that, and also looking for um, you know, where there is good up where there are programs being well run, modeling those programs with throughout the agency.
Um customer service obviously is key, and serving our families is what we do.
So I'm greatly honored to let you um have trusted me to help you over this period as we move um through the SHRA world.
Okay, thank you so much.
Welcome to Sacramento.
Thank you.
Okay, okay.
Now moving along to the city auditors fiscal year audited cannabis business operations tax amount for the Sacramento Children's Fund.
Welcome Fresh Da.
Good afternoon, members of the City Council.
I'm Frisch Starr year, city auditor.
With me today is uh Joe Fleming, who is the lead on this project and the one we're presenting next.
The recommendation that is before you to is to approve the city auditors fiscal year 24-25 audited cannabis business operations tax amount for the Sacramento Children's Fund.
This is our second year conducting this uh CBOT revenue audit and our baseline funding verification that's gonna be presented next.
Uh the city charter requires that we conduct this annually.
Uh now I'm gonna pass it over to Joe to continue the presentation and walk us through the results.
Uh good afternoon.
My name is Joe Fleming.
I'm a senior fiscal policy analyst with the office of the city auditor.
Uh the Sacramento Children and Youth Health and Safety Act, also known as Measure L, was passed by voters in 2022.
This established City Charter Section 120, the Sacramento Children's Fund, and requires the city auditor to publish an audited amount of CBOT revenue each fiscal year, the general fund equivalent of 40% of the audit amount of the BOT revenue is allocated as then allocated to the children's fund.
The objective of this project was to fulfill the requirement outlined in section 120, uh subsection C2 of the Sacramento City Charter by publishing an audited amount of the CBOT revenue for the uh prior fiscal year.
We determined that contracting with the city's external auditors would be the most efficient use of resources to complete this audit.
As such, the external auditors completed the audit in accordance with the generally accepted auditing standards and government auditing standards.
The results of the audit show that for fiscal year 24-25, CBOT revenue came in at 22 million six hundred and nine thousand nine hundred and thirty two dollars.
So during the uh budget process each year, the city makes an estimate of CBOT revenues and budgets and amount equivalent to 40% of the estimated CBOT revenue to be transferred from the general fund to the children's fund.
During the fiscal year end process, the finance department performs a true up to ensure that the contribution to the children's fund reflects 40% of that actual CBOT revenue for the prior fiscal year.
So excuse me, for that particular fiscal year.
So the numbers on the right hand side of the right hand side of the slide show an example of this process.
Now for fiscal 2425, the estimated CBOT revenue was approximately 23.3 million dollars, which was unchanged from the uh fiscal year 2324 budget.
Therefore, approximately 9.3 million in general fund dollars was allocated to the children's fund.
So the audited amount of the CBOT revenue was approximately 22.6 million, coming in below estimates.
Therefore, the finance department did a true up to reduce the revenues by approximately 280,000 from the children's fund.
And so that total amount contributed to the children's fund for 20 fiscal year 25 was approximately uh 9.04 million dollars.
So uh this concludes my presentation, and I'm available to answer any questions that you might have.
Okay, so I'll move the resolution.
Sorry, I have one.
To adopt the audit.
Okay, motion is second.
We have motion to second.
Comment from Council Member Capital.
Were there any public comments first?
Yes, there is one public comment.
Okay.
Lambert.
This is this is an example of uh when acronyms start being used.
Had I not read this, I wouldn't even know what CBOT was, but I'm an acronym guy.
I'm a survey guy, and I'm a uh whenever you see acronyms, and you're talking to people that don't know what the acronyms are, that could be used as a tool of deception.
I had no idea it was called CBOT until today.
Now cannabis, which I'm stunned that there's no core members here, they should be ashamed of themselves as much as they complain about how they're treating treated during core, but nobody's here.
The reason I'm here is because I'm showing the inconsistency towards people of color in this arena.
For instance, this is the only arena that I've studied, and I learned it studying core, that they have such a high tax rate.
How can they have an increase in revenue?
I mean, I own a business, anybody can figure that out.
If you're over taxed, there's no motive to make you want to go out and generate revenue because you're going to be taxed.
I mean, it's so simple to me what we got here, but it's not going to be simple when it when it has to be dealt with in another forum.
But I'm glad I came today because CBOT, you almost got that past me, but you won't get that past me because uh I'm an acronym guy.
I mean, even the millennials call to the band back cheesecake T O B something, and I said, wait a minute.
You call it what it is, but they still do it.
So CBO.
Thank you.
I have no more public speakers.
Thank you.
Council member Kaplan.
Thank you, Mayor.
Um, just want to ask a question, which I really appreciate the audit, but you know, we have timing issues.
So when you do the cannabis audit and the BOT, and like we saw it came in lower.
What process are we putting into place?
You know, as you do this audit.
What is it due to the effect of contracts that have already been let out?
Good afternoon, uh, mayor, council members, members of public, P.
Cletter, the finance director.
Um, so I know there has been uh we've had some discussions over budget uh in the mid-year financial update around uh excuse me, the impact on the children's fund for the first round of measure L funding.
We will be providing an update to council on March 3rd.
I'll give you the sneak preview, which is um we are not anticipating a material impact on the first round of funding.
Uh, we did have enough room.
We we essentially um put out lesson grants uh for that first round than um you know we were anticipating in receipts.
So there we're still anticipating a balance, even with the lower cannabis tax projections, but we'll give um kind of more color on that on the third, as well as you know, staff's recommendation, which is when we come for round two of um funding for measure L that at that time uh we bring to council some options for policies to ensure that uh you know we're able to fully fund everything that we're putting out in the community.
Thank you.
And I think with audit, have we looked at do we need to change the timing of how we do the audit or the audits done to line up a little bit more with children's fund and if there is an impact?
If even that can happen.
Yeah, I think that's uh it's it's tough to change the timing uh because they do need our our year-end results, but it is something that you know we get regular, we're we actually collect the tax.
Uh, so we do have regular updates, um, just similar to what we brought in mid-year when we're we were saying, hey, wait a minute, um, the our actual receipts are coming in, you know, significantly lower than we were projecting.
So we need to essentially account for that.
Um, so we'll be able to provide council regular updates.
So that's potentially something as a policy we look at is maybe when we're planning for measure L and future potential funding, if you're seeing a significant dip or increase that we we have to recognize that, and that should be part of the process.
Yeah, correct.
And um, you know, we'll also bring some options like hey, do we want to make sure we have a minimum fund balance in the children's fund just to account for the fact that this is a volatile revenue source, or do we only want to um you know essentially let out or grant out um, you know 85% or 90% of what we're projecting just as a contingency, and then we can kind of evaluate during the funding cycle.
So we'll bring some options to council and we'll bring uh some of the numbers behind what I'm talking about on the uh will come on the third, and then the options would come when we're ready to do the next round of funding.
Perfect.
Thank you.
Thanks, Mayor.
Um, just first wanted to take this moment to thank Farisha and Joe.
Thank you so much for your hard work.
Um, and I think it is really important that we audit our cannabis um CO BOT to ensure that we're actually in alignment with our current projected value uh revenues, right?
I think that's that's key, that's part of the charter.
Um, but I I also wanted to take this moment just to flag for my colleagues, especially those who are concerned about this year's revenue coming in under projection.
Um, first, you know, when city staff actually process grants, they are allocating revenue that has already been collected.
Um the ballot was actually passed in 2002, and so we actually started collecting those funds about two to three years.
So we have we have had about two to three full years of revenue collection before the funds were actually even distributed.
So I just wanted to share that with my colleagues.
Um, and so um the actual adjustment for 2024, I believe, doesn't actually make an impact on current grant making.
It just simply means that there's gonna be less funding uh available for future grants, right?
Um, that's the way I see it.
But I do appreciate uh P, as um you bring the options back to City Council.
I think it is it is good that we have um some guardrails in place as um city staff is working on future grant making process uh to ensure that whatever we you know we are putting out is actually in alignment with what we have collected in terms of revenue.
Um, and then I just also just wanted to share um that this summer we will actually be rolling out the basic income program for youth aging out of foster care as part of our homelessness prevention efforts.
Uh this funding again have has already been set aside.
Um, and for those that don't know, approximately 50% of our youth that age out of foster experience homelessness, and I know that's one of our top issues in in the city, and so I'm really looking forward to seeing these critical investments for our youth in the city.
So thank you so much uh for all your hard work.
We have a no further speakers.
I have a motion by council member Dickinson to confirm and a second by council member Kaplan.
Is that correct?
Mayor, sorry.
Yes, all those in favor, please say aye.
Aye, noes or abstentions.
Hearing none.
I have absence.
Motion passes with council member plucky bomb absent.
The next item is item number 20.
City auditors fiscal year 2024-2025 baseline funding verification for the Sacramento Children's Fund.
The presentation magic is working.
Hold on.
There you go.
Uh good afternoon, uh, members of the city council.
Uh, my name is Joe Fleming, a senior fiscal policy policy analyst with the office of the city auditor.
The recommendation that is before you is to approve the city auditors' fiscal year 2425 baseline funding verification for the Sacramento Children's Fund.
This is our second year conducting the baseline funding verification, and the city charter requires that we conduct this verification annually.
As I mentioned in my previous presentation, the Sacramento Children and Youth and Health and Safety Act, also known as Measure L was passed by voters in uh 2022.
This is established city charter section 120, the Sacramento Children's Fund, and required the city auditor to calculate and publish the baseline funding amount by December 31st, 2023.
The city auditor fulfilled this obligation and calculated the baseline funding amount to be 22.9 million dollars.
Each year, the city auditor is required to verify whether the baseline funding amount was expended in the prior fiscal year.
Um the objective of this project was fulfilled the requirement outlined in Section 120, subsection E1C of the Sacramento City Charter by verifying that the baseline funding amount of 22.9 million dollars was expended in fiscal year 2425.
The scope of this project was city expenditures for fiscal year 2425 or those that were made between July 1st, 2024 and June 30th, 2025.
To achieve our objective, we researched programs that departments identified as youth related, and so to confirm that a program qualified toward the baseline funding verification, we conducted an analysis to verify its compliance with the criteria that was laid out in the city charter.
We reviewed expenditures from those programs in fiscal year 24-25 net of program revenues, confirming their source as unrestricted general fund revenue, aligning the program with one or more fund goals, and verifying that the expenditures did not fall into prohibited categories.
Now, in certain situations, the most appropriate method for determining the correct allocation of youth-related expenditures was to rely on management estimates.
In specific cases, we employed management's estimations to determine the appropriate distribution of administrative costs among the eligible youth programs.
Additionally, we depended on management assessments of youth program participation to isolate and allocate the youth-related portion within those programs that had a partial youth component.
So these estimates were based on available program attendance records, though it's important to note that due to limited time and resources, we did not conduct independent audit procedures to validate the accuracy or the completeness of the management estimates.
So after reviewing youth the City of Sacramento's youth programs and related expenditures for fiscal year 24-25, we have verified that the city expended the baseline funding amount for the Sacramento Children's Fund.
This slide summarizes the department's youth-related programs, the fund goals that were fulfilled by the program operations, and the eligible program expenditures that counted towards the fiscal year 24-25 baseline funding verification.
In determining the eligibility of expenditures in accordance with the baseline funding criteria, some expenditures from the youth-related programs were excluded, and so some of the common reasons for reducing the amount included as eligible were uh the funding sources may have been ineligible.
Uh they fell into a prohibited expenditure category, or there were programs that only had a partial youth component.
Guidance from last year's presentation to city council dictated that in odd years, the city auditor will publish an analysis of expenditures up to the baseline funding amount and in even years publish a full accounting of the eligible youth related expenditures across all departments.
As the current analysis is for the odd year of fiscal year 24-25.
We have published the relevant eligible youth-related expenditures from the departments that were needed to meet that baseline funding amount.
For that reason, this table does not encompass all youth programs across the city of Sacramento, nor necessarily all the youth all of the youth programs within these listed departments.
As the city auditors' responsibilities established in Measure L require two annual reports, we have updated our web page as a central location for the council management and for the public to have access to these reports.
As outlined in the charter, our primary responsibility is to ensure that the baseline funding requirement has been met.
We want to reiterate that there are other expenditures in other departments and within those departments that would be considered as eligible towards the baseline funding verification.
So next year's report will include a more thorough analysis of expenditures comprising all youth programs across all departments and all eligible program expenditures.
Thank you for your time.
This concludes my presentation, and I'm available to answer any questions that you may have.
Thank you.
I have one public speaker.
One public speaker.
Lambert.
As I listen to what I just heard, not on this, it's this one too, but now I know why people didn't come today.
They've received grants.
That's that's bald and paid for.
And I am not afraid to say that.
Anytime you complain about something, you should have the uh, I don't know what the term is, but you should have that and come down here and stand on it.
Otherwise, you shouldn't complain.
I don't consider what I'm doing complaining, though.
Um, when I see children's fund, and as uh an alumni of Grant High School, all of the great things that they're doing over there, and they're always having problems with funding.
Uh I think they went to the drum line went to um Scotland, Ireland last year.
I'm not sure if they went.
I've been real busy.
But a group like that, every year they go somewhere.
They should have no problem with Measure L, which I voted for, Measure U, which was combined, and and as I look at all the money that comes in from cannabis, uh the grant drum line should never have problems traveling, and that includes chaperones, parents, grandparents, whoever's going, they never get in a scandal.
There's all kinds of scandals down here by adults.
These are teenagers, and they should be funded, and don't come telling us about uh a delay or or something didn't come in.
It came in, it just wasn't dispensed.
There's a difference.
I love those teenagers.
Not only that, but I'm an alumni.
We were just there for Martin Luther King, luncheon, rave reviews.
It was a 50-year reunion for me.
Thank you for your comment.
I have no more public speakers.
Okay, thank you to Councilmember Bang.
Thanks, Mayor.
Um, just want to take this moment to thank Joe again.
I don't really have any questions, just more comments.
Um, just wanted to remind folks uh the reason why we're also here talking about the baseline is because when advocates wrote uh this measure, um, they wanted to ensure that no supplanting actually occurred with the Sacramento Children's Fund, and that's the reason why we do this.
So I just do also just want to take a moment to thank all the youth advocates who fought really hard about four years ago, uh, who campaigned and knocked on doors to get this measure passed.
Um, especially I know that we have some tough decisions ahead um during the budget.
Uh it's budget season, um, but I'm grateful that we have this measure because it is providing a guardrail to make sure that we protect youth funding.
Um eventually, though, I just want to be on record is that um really great, really appreciate the work of our city auditor.
But eventually, though, I know that baseline every year will eventually be met because labor costs is gonna rise for Yipsey staff, right?
When we give raises, um, when we um cost just goes up in general, and so I anticipate that you know when you come here during the odd years or every year that those dollars will actually be met.
Um, but I do want to say thank you for acknowledging that um you know this um this verification is not as thorough uh and that we're gonna spend the odd years doing it because you know we want to be uh mindful of our capacity in the city auditor's office as well, and I think that that makes absolute sense.
Um, and so just want to say thank you for all your hard work, even though it may not have been may not have been as thorough.
We know that we've met the baseline verification, that's the most important thing that I think uh what the voters wanted to see, so I think that's great.
And then with that, I'll just make a motion to approve the city auditors baseline funding verification for the Sacramento Children's Fund.
Now, second.
Thank you.
You still have a comment, Vice Mayor?
Okay, thank you.
Motion is second, no further comments.
All those in favor, please say aye.
Aye.
Any nose are abstentions, hearing none, one absence.
Motion passes with the absence of council member Blackiebomb.
Is that right?
So I have uh eight speakers for matters not on the agenda.
Okay.
Please proceed.
All right, Peter?
The Sacramento police officer gets a call.
A resident says the foreign government is threatening her family.
Maybe she has a sick and the threat traces back to India.
Maybe she is Uyghur and it traces back to China.
The officer has no training for this.
No framework for recognizing transnational repression.
No protocol for believing that the person on the other end of that call is telling the truth.
And no idea that the Department of Justice has already indicted a foreign intelligence officer for directing an assassination plot against an American citizen on American soil.
SB 509 would have changed that.
The California Police Chiefs Association endorsed it and it would have trained your officers to recognize exactly this kind of threat.
However, the Hindu American Foundation killed it.
HAF's own statement says that they spearheaded a coalition through the governor's office.
And Governor Newsom vetoed the bill on October 13th of last year.
Congress's own research service listed HAF as a Hindu nationalist group operating in the United States.
And Jewish currents reports that HAF has consistently supported the supremacist policies of India's Modi government.
The same government whose intelligence officer, the DOJ indicted for that assassination plot.
Now ask yourself why they killed that bill.
This council honored HAF twice in 2023 and again last September, less than a month before HAF celebrated that veto.
Proclamations are not decorative, they are political currency, and this council has been minting it for an organization that spent it against your own police department.
Your officer still does not have the training, and this council helped to make sure of that by platforming the very same organization that killed the bill that would have given it to them.
Thank you.
Next speaker, I have Lambert and then Graham and then Liana.
Okay, I'm gonna give this done in two minutes.
First of all, that was very kind of the Rostrum to send somebody to talk to that gentleman over there who was caught in a in the system.
There's some times when you are very kind, and I'm hoping that's gonna be the case with what I'm talking about as well.
Uh ever since I've been challenging City Hall, uh I never had a parking ticket, I never had any problem lately, and I've already reached out to City Councilman Dickinson's office.
Uh, and there's some kind people across the hallway.
I went to find out when I went to uh DMV.
They told me I had some tickets, and I've never had tickets.
I have a great driving record, and so they pulled it out and showed it to me, and we caught City Hall because they did a uh Zoom with me, and the person who was doing the zoom, just like during COVID, a lot of people don't know how to operate Zoom.
And so it said that it was an error, but it didn't say it was an error on my part or theirs.
So I need help with that.
I've never had a ticket.
Then they said I parked in front of a bus zone.
You should never bother me in Del Paso Heights.
They took a picture of my truck, and my truck was in front of a neighbor who is willing to go to court behind this.
They actually uh her name is Betty R.
She should get a raise.
She just sent me the picture, and it shows my truck is parked way away from the bus stop because my neighbor lives there.
You have to be careful when you play games with certain people.
And I need somebody from City Hall to meet me back there and tell me what are my options because I need to get to DMV and pay my fee, or else it could be a problem riding around like that.
And also, we just got our better business bureau recertification, and we are very proud of that.
Thank you for your comment.
Your time is complete.
Graham.
First, they came for the black people, and I did not speak out because I was not a black person.
Then they came for the Latinos, and I did not speak out because I was not a Latino.
Then they came for the Asians, and I did not speak out because I was not an Asian.
And then they came for the protesters.
And I did not speak out because I was not a protester.
Then they came for me, and no one was left to speak out for me.
One of the speakers is signed up today.
Josh will not be here because he was just arrested by DHS.
This original poem was written by a former anti-Semite who was a pastor.
He was imprisoned after he spoke out against Nazi control of churches.
And as we know, there is Nazi control of a teepee, which is a church.
And yes, I'm raising my voice, and yes, I know some people want to say that's not professional.
What is happening in this city is not professional.
Mayor McCarty, I've called you four times.
Not once have I received a call back from you.
Nor did I receive that email with the permit paper that you promised me.
I'm sick of coming to this town to work.
Invest my time and energy into it, and then on my off time, be harassed by your officers, our protesters, including this man back here, Lambert.
We're all getting targeted by your city.
I've lived in California my whole life.
I lived in the most fucking conservative town, excuse my language.
This town starting to look like Nazis in fucking disguise.
Our next speaker is Liana.
I would beg to differ.
It's Nazis in suits.
Hey Phil, how's it going, bud?
Good to see you.
Thank you so much for coming out to have a discussion with us.
I appreciated your promises, but they're empty.
So are yours, McCarty.
All of your promises are empty.
A number of you, my, you've been doing wonderful things in our community, actually giving a shit about our community and presenting.
When you sit and pay attention to us, it matters.
When you kick back, we notice it too.
Your body language says everything.
The 1978 American Indian Freedom of Religious Act was violated.
We have been violated and targeted multiple times, repeatedly, constantly by SAC PD, constantly.
We're talking every single day.
And all we're doing is trying to keep people from being kidnapped and disappeared.
I'm not gonna be sorry for that.
We're never going to stop until they stop taking our neighbors, our friends, our family.
And I would hope that you guys would give a shit, McCarty.
I would hope that you would give a shit.
Because you wanted, you ran so hard against Flo and you fought so hard.
You wanted this seat.
Do something with it, do something that matters.
This is the capital.
Hey, look at me, please.
Kevin.
Kevin!
Alright, cool.
So you don't listen to shit.
Good to know.
Um that actually tracks because no mayor uh for as long as I can remember and any time that I've been up here has actually cared.
There have been some council members that care.
Phil, it seemed like you care.
My I can tell you care.
Katie, I'm not always sure.
But it's clear.
So pick the side you want to be on.
Because, I mean, we're gonna remember which side it is.
So have a good one.
Our next speakers are Sierra.
Joshua, I think I heard somebody say that Joshua's no longer here.
Thank you.
Okay, I understand.
Thank you.
I just wanted to.
I just wanted to confirm.
Thank you.
Sierra.
So y'all don't know me yet.
I'm actually haven't lived in California my whole life.
I was actually born in Minneapolis, Minnesota.
I am staying in Trinidad, California.
You guys say this is Northern California, but there's a whole northern part of the state that you guys exclude.
A tribe that you guys exclude.
I reside on the Uruk tribe, Trinidad Rancheria.
I came down here for prayers with my sacred Native American church.
I am Cheyenne River Sioux and Roads just to walk to Noyate.
I am Lakota and Dakota, and I came down here with my church to have prayers.
Sacramento Police Department violated the American Indian Freedom of Religion Act, the non-interference mandate, CA Public Resources Code 5097.
The no camping rule does not apply for this.
Mandatory consultation, AB 52 and SB 1A.
Which means you have to consult with California tribes before taking a tribal cultural resource, which a Native American teepee is a tribal cultural resource, and you violated the federal religious protection.
R L U I P A 42 USC 2000 C C.
And actually, one of the police officers who was there that desecrated my church, is right there.
Say hi to him right there.
Hi, yeah, I remember your face.
You promised a lot of promises, Phil.
And I've waited two weeks on those promises.
I also made promises, and I'm planning on fulfilling on those promises as well.
And I know you remember those promises.
Sacramento police department needs to return the sacred Native American artifacts that they desecrated and stole.
They have it in inventory, marked as a tarp and bamboo sticks.
Because they know if any of you guys knew that they were holding a Native American TB, it would be flagged immediately.
All of you guys are sitting on your fucking asses.
Thank you for your comment.
Your time is complete.
Give my TV back now.
T TV!
Our next speaker is our next speaker is Michael.
Take me back now!
I'm done.
Take me back now!
She can't be back now!
I'm not my fucking heart back now.
Okay, but look on your face.
Tell us exactly what you put in my crazy water.
Next speaker, please.
Next speaker is Michael.
You get to fucking decide.
Next speaker.
Next speaker is Michael.
Michael.
No, let's keep talking.
Louder.
I think you're talking no trash.
I just want to say that uh the parking laws need to change.
If you have an RV, you should legally be able to uh park in front of your family's homes, on the street, in the grass, or whatever.
Because um, you know, today my RV got taken again.
It had no 72-hour notice on it.
I was moving it every couple of days like I was ass by the police.
Um I'm still waiting for my housing.
They told me uh to keep it in the court.
They was like, don't don't don't drive out the court, just stay in your court.
And and I kept moving it around the court like they asked me to, and um, they they they told me again this morning just out the blue.
I didn't break no no laws.
I I've been waiting on SHRA to to do something.
I've been watching the news trying to see if y'all was gonna make a parking spot for to park it or something like that.
And I'm coming back to you guys again because last time that they told my car, y'all helped me out, and I'm hoping that I could maybe could give some assistance again.
Mr.
McCartney, I apologize for you know for saying it's you can build with the money.
You know, I'll probably say that a few times, but you know, uh please don't hold that against me.
I really do need more RV back if anybody can help me in.
If anybody can help with um homeless assistance where I can find, even if I don't get uh the RV back, give me it uh some some vouchers for a hotel or something.
You guys have been seeing me for over a year, you guys have been seeing me over the last few years coming back to you saying, hey, I'm homeless, I need some help.
I'm coming uh correctly, I'm trying to come correctly.
You know, I'm not on probation no more, I'm not on parole.
I changed my life, I got eight kids.
A child support is beating my butt.
Like I got like I was at eleven thousand dollars.
I think I'm down to like five thousand dollars that I still owe right now.
You know, I got I I got divorced, I was on Moria, I wasn't a father, like and and I I was in a real toxic relationship, and now I'm free.
But please, if anybody can help me, you mean I'm gonna be around today, please.
I need some help, thank you.
Is LRR Roberts here?
Hi, I'm L R.
Roberts, I'm in District 5.
Uh, to recap for many decades activists took concrete steps against border patrol, then tried to stop DHS, which has Nazi roots and ice.
It is a fact that many ethnic groups were active over the decades, including many Hispanics, Latinos, Chicanos, Indigenous, and their organizations.
Now our police are helping ICE violate U.S.
and international law.
Now, federal court is prosecuting young activists.
I saw the paperwork today, and allegedly they are they're alleging that we're being paid.
I just love that one.
Imagine how much money I'd be owed, um, which is you know absolutely ridiculous.
And that these young people are creating a new political pushback.
I'm sorry, I've done this since the 70s.
This is not a new political pushback.
Um, because we're trying to stop attacks on immigrants.
We've been doing this since the 70s.
This young person didn't create this out of nowhere, even though I like what they're doing.
I do see um huge number of our cops attacking homeless people, like the eight people that gave one ticket to an uh homeless woman that I've already talked about.
And then the other time I saw six of them, four of them on on uh horses attacking a um guy trying to sleep in front of the Amtrak sign because it takes six cops to deal with that.
Today I called 911 and they refused to do anything.
One of my neighbors had her wallet and her phone stolen by Corey, a notorious criminal in Oak Park, and he was on in his Mustang in front of my house.
So I tried, I called 911, I said the guys here who stolen my neighbor's wallet and phone, and they refused to do anything, and then Katie's office and I have been in contact because the cops aren't doing their jobs.
They're busy throwing away things that homeless people own.
That's what they're busy doing.
Why does it take eight cops to give one homeless person my age a ticket?
I have no more public speakers.
Do we have any council comments ideas or any AB 1234 reports or a city manager's report?
Yes.
Councilmember Kaplan.
Thank you, Mayor.
I have an AB 1234 report.
Uh last week, I was in Berkeley.
I am an at-large member for Cal Cities.
Uh, a lot of conversations, discussion, big one was had about uh Bradley Burns and the tax allocation of the impact of distribution centers, uh cities who have them, and then cities who can't have them, and where should Cal City's position be?
I will tell you the conversation is continuing.
Uh no no finality was had, but it is definitely uh a hot topic.
I also have an AB 1234 report.
Same as uh Councilmember Kaplan, uh great update, so nothing to add.
Thank you.
Thank you.
Okay, thank you.
That we're adjourned.
Right.
Adjourned at 319.
But what is it?
Discussion Breakdown
Summary
Sacramento City Council Meeting Summary (February 24, 2026)
The Council convened, approved a large consent calendar with two dissenting votes on a Measure L-related consultant contract, received and filed SHRA’s FY2024 audit and single audit results (including several timeliness-related findings), and approved two City Auditor items related to Measure L/Children’s Fund cannabis tax revenue and baseline funding verification. The meeting closed with extensive non-agendized public comments focused on transnational repression training, alleged targeting/enforcement actions, Native religious rights concerns, and homelessness/RV towing.
Consent Calendar
- Approved 17 consent items.
- Item 5 (Norwood Mobility Plan): Councilmembers Dickinson and Kaplan praised the plan and emphasized the need for implementation; staff indicated potential for quick-build elements and noted it is a priority project.
- Item 11 (suspension of competitive bidding, Old Sacramento refresh): Councilmember Kaplan asked about safeguards; City Attorney stated suspensions require justification and that RFP/RFQ processes and conflict-of-interest reviews still provide protections.
- Item 17: Consent calendar passed with two “no” votes on Item 17 (consultant contract $749,929 related to Measure L evaluation work).
- Councilmember Talamantes: No vote, stating preference for building internal capacity (an internal employee) rather than using consultant funds.
- Councilmember Kaplan: Joined as a no vote.
Discussion Items
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Item 18 — SHRA Annual Comprehensive Financial Report (year ending 12/31/2024) & Single Audit (Receive & File)
- Auditor Mandy Merchant (CliftonLarsonAllen): Reported unmodified (“clean”) opinion on financial statements and unmodified opinion on internal controls over financial reporting; single audit included qualified opinions for two programs due to material weaknesses.
- Reported one material weakness for financial statements; for federal awards, two material weaknesses and three significant deficiencies.
- Key timeliness-related findings presented included (as described by the auditor):
- Housing Choice Voucher inspections and re-inspections: samples included 23 of 60 not timely in one test; 1 of 40 not reinspected timely after failed inspection; 1 of 60 annual inspection not completed since 2022.
- Public housing eligibility: 16 of 40 files with exceptions (annual certifications not completed on an annual basis/timely; one instance missing since 2022).
- Emergency Solutions Grant pass-through payments: 10 of 29 payments not made within the required 30 days.
- Councilmember Kaplan: Asked about internal controls and corrective actions; SHRA staff described implementing reporting and monthly monitoring with multiple management levels.
- Auditor stated findings were largely timeliness-related and noted improvement trend: findings decreased from 10 (prior year) to 5 (this year).
- Public comment (Michael Melton): Expressed concern that homelessness has increased despite prior funding; stated he has waited a long time for housing/keys and questioned whether SHRA is dispensing money effectively.
- Council took no action beyond receive-and-file; Mayor indicated staff would follow up with the public commenter.
- Introduction of interim SHRA leader: City staff introduced Chris Warren as interim SHRA executive director; Warren emphasized customer service and improving programs.
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Item 19 — City Auditor: FY 2024–2025 Audited Cannabis Business Operations Tax (CBOT) Amount for Sacramento Children’s Fund (Measure L)
- City Auditor Frisch Starr / Analyst Joe Fleming: Reported audited CBOT revenue for FY24–25 of $22,609,932.
- Described the transfer mechanism: 40% of audited CBOT is allocated (via General Fund equivalent transfer) to the Children’s Fund; Finance “true-up” adjusts to actuals.
- Example described: estimate around $23.3M led to about $9.3M budgeted; audited revenues were lower and Finance reduced Children’s Fund revenues by about $280,000, resulting in about $9.04M contributed.
- Public comment (Lambert): Objected to heavy acronym use as potentially deceptive; raised concerns about cannabis tax impacts and equity.
- Finance Director (P. Cletter): Stated staff would update Council on March 3; said staff is not anticipating a material impact on the first round of Measure L funding and would bring future policy/guardrail options (e.g., minimum fund balance or granting less than projections due to volatility).
- Councilmember Vang: Emphasized grant allocations are based on collected revenue and noted earlier years of collections before distributions; highlighted upcoming youth basic income program for foster youth aging out.
- Outcome: Approved unanimously (one member absent: Councilmember Pluckebaum).
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Item 20 — City Auditor: FY 2024–2025 Baseline Funding Verification for Sacramento Children’s Fund (Measure L)
- Joe Fleming: Verified the City expended the baseline funding amount of $22.9M in FY24–25; described methodology and noted some allocations relied on management estimates (not independently audited due to time/resources).
- Noted reporting approach: odd years report expenditures up to the baseline threshold; even years provide fuller accounting across all departments.
- Public comment (Lambert): Spoke in support of youth funding and argued funds should be dispensed to youth activities (cited Grant High School drumline).
- Councilmember Vang: Stated baseline verification exists to prevent supplanting; thanked youth advocates; noted baseline will likely continue to be met as costs rise.
- Outcome: Approved unanimously (one member absent: Councilmember Pluckebaum).
Public Comments & Testimony
- Peter (no last name provided): Argued SB 509 would have trained police to recognize transnational repression threats; alleged the Hindu American Foundation (HAF) helped defeat the bill and criticized prior Council proclamations honoring HAF.
- Lambert: Alleged he was improperly cited/ticketed and requested help resolving DMV-related issues; claimed enforcement targeting.
- Graham: Claimed protesters are being harassed/targeted; criticized lack of response from the Mayor; used Holocaust-era poem framing to describe perceived civil rights threats.
- Liana: Alleged ongoing SAC PD targeting and violations related to an Indigenous/National Native American Church teepee; urged elected officials to take action.
- Sierra: Stated SAC PD violated the American Indian Religious Freedom Act and other laws; demanded return of sacred items and asserted the teepee was mis-labeled in inventory.
- Michael Melton: Requested help after RV tow without 72-hour notice; asked for assistance (RV return or hotel vouchers) and reiterated need for housing help.
- L.R. Roberts: Alleged police cooperation with ICE and criticized enforcement priorities; described perceived lack of response to theft while homeless enforcement continues.
Key Outcomes
- Consent Calendar: Passed; Item 17 recorded two “no” votes (Talamantes, Kaplan).
- SHRA Audit (Item 18): Receive and file; no vote recorded; staff indicated follow-up with a public commenter.
- Children’s Fund CBOT Audit (Item 19): Approved; audited CBOT revenue $22,609,932; contribution/true-up process described; passed unanimously with one absence (Pluckebaum).
- Children’s Fund Baseline Verification (Item 20): Verified baseline $22.9M spent; approved unanimously with one absence (Pluckebaum).
- AB 1234 Reports: Councilmembers Kaplan and Dickinson reported attending Cal Cities discussions in Berkeley, including discussion of Bradley-Burns and distribution center tax allocation issues.
- Meeting adjourned (noted as approximately 3:19).
Meeting Transcript
I hear things like that is a key word. So the time frame for the day collection is not ideal. All right, we're good. Anytime I don't have it. That's always different something. Ready whenever you are. Yeah, okay. Please call the meeting to order the Sacramento City Council. Please call the roll. Councilmember Kaplan? Here. Councilmember Dickinson? Here. Vice Mayor Salamantes. Councilmember Pluckybaugh. Councilmember Maple? Here. Mayor Proton Gera. Councilmember Jennings? Here. Councilmember Vang? Here. Mayor McCurdy? Here. You have a quorum. Thank you. Councilmember Maple, please lead us in the pledge and land acknowledgement. Certainly. Please rise if you are able. For the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands to the original people of this land, the Nissanan people, the Southern Maidu, Valley and Plains Miwok, Putwin Winchan peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe. May we acknowledge and honor the native people who came before us and still walk beside us today on this ancestral lands by choosing to gather today in the active practice of acknowledgement and appreciation for Sacramento's indigenous people's history, contributions, and lives. Remain standing, salute and pledge. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. Indivisible with liberty and justice for all. Next we have the consent calendar. We have 17 items on the consent calendar, and I have one speaker for item number 11. Yes. Lambert? Number 11, it talks about suspension of competitive bidding. This is a very slippery slope. You've been doing that for a while. And when you are a business owner, you want to be able to bid on it. Whatever it is, you know, and I'll give you an example of why. Now, can we use this today? The overhead. Because last night I was at Measure U commission and they were using it. So this is gonna become a freedom of speech violation of the First Amendment. Because there's no excuse to not let us show what we're gonna show. So since I can't show it to you, then I have the right to show it to the public. This is the Sacramento B, and it talks about an example of why you shouldn't have competitive bidding.